BankFinancial(US:BFIN)2019-10-30 18:42Loan and Asset Performance - Total loans decreased by $42.2 million (6.8%) in the multi-family mortgage loan portfolio due to increased prepayments[104] - Total assets decreased by $93.3 million, or 5.9%, to $1.492 billion as of September 30, 2019, primarily due to a decrease in loans receivable and securities[116] - Loans decreased by $109.8 million, or 8.3%, to $1.214 billion, while securities decreased by $22.7 million, or 25.8%[116] - Nonperforming assets decreased by $1.0 million to $1.7 million as of September 30, 2019, from $2.7 million at December 31, 2018[159] - Total nonperforming assets included $1,160,000 in one-to-four family residential real estate loans, a decrease of $237,000 from the previous quarter[158] Deposits and Liabilities - Total deposits declined by $41.4 million (3.1%) from June 30, 2019, attributed to seasonal factors[106] - Total liabilities decreased by $80.1 million, or 5.7%, to $1.318 billion, primarily due to decreases in total deposits and borrowings[120] - Total deposits decreased by $63.7 million, or 4.7%, to $1.289 billion, with retail certificates of deposit increasing by $12.3 million, or 3.7%[120] Income and Expenses - Net interest income before provision for loan losses was stable at $13.2 million for the quarter ended September 30, 2019[108] - Net interest income increased to $13.2 million, reflecting an 8.2% increase in interest income[123] - Noninterest income decreased by $96,000, or 6.1%, to $1.5 million for the three months ended September 30, 2019, compared to $1.6 million for the same period in 2018[133] - Total noninterest expense increased by $84,000, or 0.9%, to $9.5 million for the three months ended September 30, 2019, driven by increases in compensation and benefits, office occupancy, and equipment expenses[135] - Noninterest income decreased by $1.7 million, or 27.1%, to $4.5 million for the nine months ended September 30, 2019, from $6.2 million for the same period in 2018[148] - Total noninterest expense decreased by $520,000, or 1.8%, to $29.1 million for the nine months ended September 30, 2019, from $29.6 million for the same period in 2018[149] Capital and Ratios - The Tier 1 leverage ratio remained strong at 11.43%[109] - The Bank's total capital to risk-weighted assets ratio was 15.46% as of September 30, 2019, exceeding the required minimum of 8.00%[170] - Tier 1 capital to risk-weighted assets ratio was 14.76% as of September 30, 2019, above the required minimum of 6.00%[170] - The minimum capital conservation buffer (CCB) was 2.5% as of September 30, 2019, with the Company maintaining compliance with all capital ratios[169] - The allowance for loan losses as a percentage of nonperforming loans was 527.25% at September 30, 2019, up from 260.54% at June 30, 2019, reflecting a stronger reserve position[133] Net Income and Earnings - Net income for the quarter was $3.9 million, an increase of $187, compared to $3.7 million in the previous quarter[113] - Net income for the three months ended September 30, 2019, was $3.9 million, compared to $3.7 million for the same period in 2018[122] - The company reported net income of $8.3 million for the nine months ended September 30, 2019, down from $11.9 million for the same period in 2018, with earnings per share decreasing to $0.53 from $0.68[137] Interest Rate Sensitivity - As of September 30, 2019, a 100 basis point decrease in interest rates is expected to result in a 1.57% decrease in NPV and a $1.7 million decrease in net interest income[179] - A 200 basis point increase in interest rates is projected to lead to a 1.42% decrease in NPV and a $1.9 million increase in net interest income[180] - The table indicates that a 400 basis point increase in interest rates would result in a $16.4 million decrease in NPV, equating to a 7.78% decline[179] - The methodology for measuring interest rate risk has inherent shortcomings, as it relies on assumptions that may not accurately reflect actual market responses[181] - The sensitivity measurements provided are not intended to serve as precise forecasts of actual results from interest rate changes[181] Shareholder Returns - The company repurchased 1,107,550 common shares, representing 6.7% of the common shares outstanding at December 31, 2018[109] - The Company declared cash dividends of $0.30 per share for the nine months ended September 30, 2019, compared to $0.27 per share for the same period in 2018[170]