BankFinancial(US:BFIN)2023-07-27 16:00Financial Performance - The company reported a net income of $2.3 million, or $0.18 per common share, for the quarter ended June 30, 2023[90]. - Net interest income decreased by $557,000 during the quarter ended June 30, 2023, with a net interest margin of 3.56% compared to 3.66% as of March 31, 2023[114]. - Noninterest income increased by $926,000 during the quarter ended June 30, 2023, with modest increases in deposit services and loan servicing fees[115]. - Noninterest expense increased by $928,000 during the quarter ended June 30, 2023, driven by higher information technology costs and professional fees[116]. - For the six months ended June 30, 2023, total noninterest expense increased to $21,512,000 from $20,488,000, reflecting a change of $1,024,000[176]. - The Company’s total compensation and benefits for the six months ended June 30, 2023, were $11,184,000, an increase of $215,000 from the prior year[176]. Assets and Liabilities - Total assets as of June 30, 2023, were $1.527 billion, with total loans at $1.171 billion and total deposits at $1.304 billion[90]. - Total stockholders' equity was reported at $152.3 million as of June 30, 2023[90]. - Cash and interest-bearing deposits totaled $115.3 million as of June 30, 2023, an increase from $77.0 million as of March 31, 2023[112]. - The company had no outstanding balance on its $5.0 million unsecured line of credit as of June 30, 2023[96]. - Fair value of total securities was $169.647 million as of June 30, 2023, compared to $210.338 million as of December 31, 2022[106]. Loan Performance - Total net loans decreased by $54.5 million (4.4%) during the quarter, primarily due to a $48.7 million decline in commercial loans and leases[91]. - The ratio of nonperforming loans to total loans increased to 2.05% as of June 30, 2023, compared to 0.72% as of March 31, 2023[117]. - The allowance for credit losses decreased to 0.78% of total loans as of June 30, 2023[117]. - The total loans receivable as of June 30, 2023, amounted to $1,179,993, a decrease from $1,234,872 as of December 31, 2022, reflecting a decline of approximately 4.4%[138]. - Nonaccrual loans totaled $24,158 as of June 30, 2023, with $23,965 attributed to commercial loans and leases[150]. - The total loans charged off amounted to $(281) as of June 30, 2023[146]. Securities and Investments - The company reported gross losses from securities sales of $454 for the three months ended June 30, 2023[135]. - The fair value of U.S. Treasury Notes held by the company was $118,375 with an unrealized loss of $6,101 as of June 30, 2023[131]. - The company holds $39,727 in U.S. government-sponsored agency securities, with an unrealized loss of $273 as of June 30, 2023[131]. - The total fair value of available-for-sale securities with unrealized losses was $165,943, reflecting an unrealized loss of $6,666 as of June 30, 2023[131]. - The company evaluated marketable investment securities quarterly and determined that no credit loss is required to be recognized as of June 30, 2023[134]. Risk and Compliance - The company is subject to various risks that could materially affect its operating results and financial condition, including interest rate movements and economic conditions[87]. - The Company incurred $441,000 in issuance costs associated with the $20.0 million 3.75% Fixed-to-Floating Rate Subordinated Notes due May 15, 2031[174]. - The Company had no consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings were in process as of June 30, 2023[172]. - The Company experienced a $10.5 million scheduled payment failure on a U.S. government financing transaction during the second quarter of 2023[179]. Shareholder Information - The Company declared cash dividends of $0.20 per share for each of the six months ended June 30, 2023, and June 30, 2022[184]. - The Company repurchased 93,515 common shares during the quarter ended June 30, 2023[118]. - As of June 30, 2023, the Community Bank Leverage Ratio was 10.80%, compared to 10.31% as of December 31, 2022[184].