Core Viewpoint - BankFinancial (BFIN) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][2]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [3][5]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [3]. Company Performance and Outlook - The upgrade for BankFinancial reflects an improvement in its underlying business, with rising earnings estimates expected to drive the stock price higher [4]. - For the fiscal year ending December 2025, BankFinancial is projected to earn $0.76 per share, representing a 130.3% increase from the previous year [7]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks which have averaged a +25% annual return since 1988 [6]. - BankFinancial's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [9].

Financial Performance - The company reported net income of $2.1 million, or $0.17 per common share, for the quarter ended March 31, 2025[86]. - Net income for the three months ended March 31, 2025, was $2.1 million, compared to $1.7 million for the same period in 2024, with earnings per share increasing to $0.17 from $0.14[110]. - The effective tax rate decreased to 17.2% for the three months ended March 31, 2025, compared to 22.6% for the same period in 2024[124]. Assets and Liabilities - Total assets increased to $1.442 billion, total loans decreased to $841.1 million, and total deposits rose to $1.233 billion as of March 31, 2025[86]. - Total assets increased by $7.3 million, or 0.5%, to $1.442 billion at March 31, 2025, from $1.435 billion at December 31, 2024[105]. - Total liabilities increased by $6.2 million, or 0.5%, to $1.285 billion at March 31, 2025, driven by an increase in total deposits[108]. Income and Expenses - Net interest income decreased by $182,000 primarily due to declines in healthcare finance lines of credit, while the net interest margin remained stable at 3.50%[87]. - Noninterest income increased by $64,000, driven by higher trust department income and deposit service charges[88]. - Noninterest expense decreased by $287,000 due to reductions in base compensation and payroll taxes[89]. - Total noninterest expense decreased by $854,000, or 7.3%, to $10.9 million for the three months ended March 31, 2025, compared to $11.8 million for the same period in 2024[122]. Deposits - Total deposits increased by $15.4 million, with core deposits representing 81% of total deposits as of March 31, 2025[96]. - Total deposits increased by $15.4 million, or 1.3%, to $1.233 billion at March 31, 2025, with interest-bearing NOW accounts rising by $11.8 million, or 4.3%[108]. Credit Quality - The ratio of nonperforming assets to total assets improved to 1.23% as of March 31, 2025, with expectations of a $5.6 million cash settlement in the second quarter[94]. - Nonperforming assets decreased by $574,000 to $17.8 million at March 31, 2025, compared to $18.3 million at December 31, 2024[128]. - The ratio of nonperforming assets to total assets was 1.23% as of March 31, 2025, down from 1.28% as of December 31, 2024[128]. - The allowance for credit losses as a percentage of nonperforming loans was 44.35% at March 31, 2025, compared to 44.71% at December 31, 2024[120]. - The recovery of credit losses for the three months ended March 31, 2025, was $261,000, compared to a provision for credit losses of $61,000 recorded for the same period in 2024[119]. - Total criticized and classified loans decreased to $12.3 million as of March 31, 2025, from $11.8 million as of December 31, 2024[125]. - The allowance for credit losses to total loans ratio was 0.86% as of March 31, 2025, compared to 0.85% as of December 31, 2024[127]. Capital Management - The company's Tier 1 leverage ratio remained strong at 10.91% as of March 31, 2025[97]. - As of March 31, 2025, the Bank's Community Bank Leverage Ratio was 11.38%, exceeding the required minimum of 9.00%[139]. - The Bank's capital management aims to balance the need for higher capital levels to address unforeseen risks while achieving adequate returns for stockholders[137]. - The Company has adopted Regulatory Capital Policies that will increase minimum capital ratios if necessary[141]. - The Bank is classified as well-capitalized under the regulatory framework for prompt corrective action as of March 31, 2025[141]. Future Outlook - The company plans to prioritize new commercial finance working capital lines of credit and corporate equipment finance transactions for future growth[98]. - The company continues to focus on expanding its small business and commercial deposit portfolio while enhancing noninterest income through wealth management solutions[99]. - The company expects to settle a $10.5 million U.S. Government Contract Disputes Act claim for $5.6 million in cash, expected to be received in the second quarter of 2025[129]. Interest Rate Risk - In the event of an immediate 200 basis point decrease in interest rates, the Bank would expect a 9.72% decrease in net present value (NPV) and a $3.8 million decrease in net interest income[151]. - Interest rate risk management strategies include de-emphasizing residential mortgage loans and focusing on nonresidential real estate and commercial loans[146]. - The economic value of equity analysis estimates changes in NPV over a range of interest rate scenarios, considering historical loan prepayment rates and deposit decay rates[147].

Part I [Business Overview](index=4&type=section&id=Item%201.%20Business) BankFinancial Corporation operates as a bank holding company through its subsidiary, BankFinancial, National Association, providing a full range of financial services primarily in the Chicago metropolitan area with specialized commercial finance activities conducted regionally or nationally - BankFinancial Corporation is a holding company for **BankFinancial, National Association**, a full-service national bank headquartered in Burr Ridge, Illinois[23](index=23&type=chunk)[25](index=25&type=chunk) - The company operates as a **single unit**, with consolidated results used for strategic decisions[24](index=24&type=chunk) - The Bank's lending activities are concentrated in the **Chicago metropolitan area**, with specialized commercial finance divisions operating regionally or nationally[28](index=28&type=chunk) [Lending Activities](index=6&type=section&id=Item%201.%20Business%23Lending%20Activities) As of December 31, 2024, the company's gross loan portfolio totaled $895.2 million, heavily concentrated in commercial-type loans, with multi-family residential real estate, nonresidential real estate, and commercial loans and leases representing 98.2% of the total Loan Portfolio Composition at December 31, 2024 | Loan Category | Amount (in millions) | Percentage of Gross Portfolio | | :--- | :--- | :--- | | Multi-family residential real estate | $522.0 | 58.3% | | Commercial loans and leases | $248.6 | 27.8% | | Nonresidential real estate | $108.2 | 12.1% | | One-to-four family residential real estate | $14.8 | 1.7% | | **Total Gross Loans** | **$895.2** | **100.0%** | [Deposit Activities](index=6&type=section&id=Item%201.%20Business%23Deposit%20Activities) At December 31, 2024, total deposits were $1.218 billion, primarily composed of interest-bearing accounts (80.4%) and core deposits (61.1%), with noninterest-bearing demand deposits at 19.6% Deposit Composition at December 31, 2024 | Deposit Category | Amount (in billions) | Percentage of Total Deposits | | :--- | :--- | :--- | | Total Deposits | $1.218 | 100.0% | | Interest-bearing deposits | $0.979 | 80.4% | | Noninterest-bearing demand deposits | $0.239 | 19.6% | | Savings, money market and NOW accounts | $0.744 | 61.1% | | Certificates of deposit | $0.235 | 19.3% | [Supervision and Regulation](index=7&type=section&id=Item%201.%20Business%23Supervision%20and%20Regulation) The Bank is primarily regulated by the OCC and the holding company by the Federal Reserve, adhering to strict capital requirements and maintaining an 'Outstanding' CRA rating, while navigating new FDIC special assessments - The Bank is primarily regulated by the **OCC**, while the holding company is supervised by the **Federal Reserve Board (FRB)**[40](index=40&type=chunk)[43](index=43&type=chunk) - The Bank maintained a **Community Bank Leverage Ratio of 11.23%** as of December 31, 2024, exceeding the **9%** minimum for well-capitalized status[53](index=53&type=chunk) - The Bank's Community Reinvestment Act (CRA) performance has been rated **"Outstanding"** in every evaluation since 1998, though new CRA regulations are subject to legal challenges[57](index=57&type=chunk) - The FDIC implemented a special assessment effective April 1, 2024, at a rate of **3.36 basis points** on uninsured deposits to recover losses from 2023 bank failures[69](index=69&type=chunk) [Risk Factors](index=16&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks from intense competition, interest rate fluctuations, operational vulnerabilities, concentrated credit risk in commercial real estate, evolving regulatory changes, and adverse economic conditions in its primary markets [Risks Related to Competitive Matters](index=16&type=section&id=Item%201A.%20Risk%20Factors%23Risks%20Related%20to%20Competitive%20Matters) The company operates in a highly competitive financial services environment, facing pressure from larger banks and non-bank entities, which could hinder growth and profitability, and is highly sensitive to market interest rate fluctuations affecting net interest income - The company faces substantial competition from various financial service providers, including those with **greater resources and less regulatory burden**[90](index=90&type=chunk) - Increasing use of non-bank alternatives could lead to a **loss of fee income and low-cost deposits**[91](index=91&type=chunk) - Net interest income is highly sensitive to market interest rate changes, where rising rates could increase funding costs and default risk, and falling rates could **compress margins**[93](index=93&type=chunk)[95](index=95&type=chunk) [Risks Related to our Lending Activities](index=22&type=section&id=Item%201A.%20Risk%20Factors%23Risks%20Related%20to%20our%20Lending%20Activities) A significant concentration in commercial real estate loans (368.12% of total risk-based capital) creates credit risk, while the company actively reduces exposure in government and healthcare equipment finance portfolios, and the allowance for credit losses involves significant judgment - The Bank has a significant concentration in commercial real estate (CRE) loans, totaling **368.12% of total risk-based capital** at December 31, 2024, exceeding the **300% regulatory guideline**[111](index=111&type=chunk) - The company is actively reducing risk in specific portfolios, with government equipment finance decreasing by **47.2%** and healthcare finance by **53.9%** in 2024[117](index=117&type=chunk) - The allowance for credit losses was **$7.6 million**, or **0.85% of total loans**, at December 31, 2024, an estimate involving significant judgment that could be insufficient[118](index=118&type=chunk) [Risks Related to Laws and Regulations](index=26&type=section&id=Item%201A.%20Risk%20Factors%23Risks%20Related%20to%20Laws%20and%20Regulations) The company faces risks from a complex and evolving regulatory landscape, including stringent capital requirements, potential fines for non-compliance with laws like the USA PATRIOT Act, and restrictions on dividend payments from its subsidiary Bank - The Bank is subject to a **2.5% capital conservation buffer**, which, if not maintained, would limit dividends and share repurchases, though it met this requirement as of December 31, 2024[128](index=128&type=chunk)[129](index=129&type=chunk) - The company's ability to pay dividends is limited by regulatory restrictions on dividends from its subsidiary Bank, which depend on the Bank's capital and earnings performance[138](index=138&type=chunk) [Risks Related to Economic Conditions](index=28&type=section&id=Item%201A.%20Risk%20Factors%23Risks%20Related%20to%20Economic%20Conditions) The company's financial health is vulnerable to economic downturns in the Chicago metropolitan area, financial difficulties of local governments, inflationary pressures increasing operating costs, and potential negative impacts from changes in U.S. trade policies - A significant portion of the company's loan and deposit activities are concentrated in the **Chicago metropolitan area**, making it vulnerable to local economic downturns[139](index=139&type=chunk) - The financial difficulties of the **City of Chicago and the State of Illinois** could adversely affect the local economy and borrower repayment ability[144](index=144&type=chunk) - Potential new tariffs on imports from Canada, Mexico, and China could harm customers' financial health and ability to service debt[146](index=146&type=chunk) [Unresolved Staff Comments](index=34&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports that it has no unresolved staff comments from the Securities and Exchange Commission - None[161](index=161&type=chunk) [Cybersecurity](index=34&type=section&id=Item%201C.%20Cybersecurity) The company integrates cybersecurity into its overall risk management, with no material incidents to date, maintaining a comprehensive Information Security Program overseen by the Board and external auditors - To date, the Company has not experienced a cybersecurity incident that has **materially affected** its operations[162](index=162&type=chunk) - The Bank's Board of Directors and senior management oversee cybersecurity risk management, supported by internal divisions and **independent external consultants and auditors**[108](index=108&type=chunk)[109](index=109&type=chunk) - The company employs a multi-layered security program including technical controls, employee training with simulated phishing attacks, and **annually tested incident response plans**[165](index=165&type=chunk)[168](index=168&type=chunk)[169](index=169&type=chunk) [Properties](index=37&type=section&id=Item%202.%20Properties) The company operates 18 banking offices in the Chicago metropolitan area, mostly owned, and closed two branches in 2023, which were subsequently sold - The company operates through **18 banking offices** in the Chicago area, most of which are owned[170](index=170&type=chunk) - In 2023, the company closed its Hazel Crest and Naperville branches, with sales finalized in April 2023 and February 2024, respectively[171](index=171&type=chunk) [Legal Proceedings](index=37&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in various legal actions arising in the normal course of business, which management does not expect to have a material adverse effect on financial results - The Company is subject to various legal actions in the normal course of business, which management does not expect to have a **material adverse effect** on its results of operations[173](index=173&type=chunk) [Mine Safety Disclosures](index=37&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[174](index=174&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=37&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common stock trades on the NASDAQ Global Select Market under 'BFIN', with no repurchases in Q4 2024 and 182,193 shares remaining authorized for repurchase - The company's common stock trades on the **NASDAQ Global Select Market** under the symbol **"BFIN"**[176](index=176&type=chunk) - No common stock was repurchased in the fourth quarter of 2024, with **182,193 shares** remaining authorized for repurchase as of December 31, 2024[178](index=178&type=chunk)[179](index=179&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=38&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In 2024, net income significantly decreased to $4.1 million due to a large charge-off, total assets declined by 3.5%, net interest income fell by 6.5%, and the loan portfolio shrank by 15.5%, while asset quality remained stable and the company plans to accelerate commercial loan growth in 2025 [Results of Operations](index=43&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations%23Results%20of%20Operations) Net income for 2024 decreased to $4.1 million from $9.4 million in 2023, primarily due to a $3.4 million decline in net interest income and a $5.1 million provision for credit losses, despite an increase in noninterest income Comparison of Operations (2024 vs. 2023) | Metric | 2024 (in millions) | 2023 (in millions) | Change | | :--- | :--- | :--- | :--- | | Net Interest Income | $48.4 | $51.8 | -6.5% | | Provision for Credit Losses | $5.0 | $0.3 | +1613% | | Noninterest Income | $5.8 | $4.4 | +31.1% | | Noninterest Expense | $44.2 | $43.2 | +2.3% | | **Net Income** | **$4.1** | **$9.4** | **-56.6%** | | **Diluted EPS** | **$0.33** | **$0.74** | **-55.4%** | - Net interest margin (tax-equivalent basis) decreased slightly by **3 basis points to 3.55%** in 2024, as the increase in cost of liabilities outpaced the yield on assets[216](index=216&type=chunk) - The provision for credit losses was **$5.1 million** in 2024, including a **$4.8 million charge-off** for a U.S. Government Contract Dispute claim settlement[220](index=220&type=chunk) [Comparison of Financial Condition](index=49&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations%23Comparison%20of%20Financial%20Condition) Total assets decreased by $52.6 million to $1.435 billion at year-end 2024, driven by a $163.2 million decrease in net loans, partially offset by a $207.3 million increase in securities, while total deposits also decreased Financial Condition at Year-End | Balance Sheet Item | Dec 31, 2024 (in billions) | Dec 31, 2023 (in billions) | Change | | :--- | :--- | :--- | :--- | | Total Assets | $1.435 | $1.487 | -3.5% | | Loans, net | $0.888 | $1.051 | -15.5% | | Securities | $0.361 | $0.153 | +135.5% | | Total Deposits | $1.218 | $1.262 | -3.5% | | Total Stockholders' Equity | $0.156 | $0.155 | +0.6% | [Asset Quality](index=53&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations%23Asset%20Quality) Asset quality improved with total nonperforming assets decreasing by $6.8 million to $18.3 million at year-end 2024, primarily due to a U.S. Government contract dispute settlement, reducing the nonperforming loan ratio to 1.89% Nonperforming Assets (NPA) | Metric | Dec 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Total NPAs | $18.3 million | $25.1 million | | Nonperforming loans to total loans | 1.89% | 2.11% | | NPA to total assets | 1.28% | 1.69% | | Allowance for credit losses to nonperforming loans | 44.71% | 37.36% | - The decrease in nonperforming assets was primarily due to the settlement of a **$10.5 million U.S. Government Contract Disputes Act claim** for **$5.6 million in cash** and returned software licenses, resulting in a **$4.8 million pre-tax charge-off**[253](index=253&type=chunk) - A second U.S. Government equipment finance exposure of **$8.4 million** remains unresolved, with a claim pending under the Contract Disputes Act[254](index=254&type=chunk) - Net charge-offs for 2024 were **$5.9 million**, a significant increase from **$2.1 million** in 2023, largely due to the government contract settlement[271](index=271&type=chunk) [Management of Interest Rate Risk](index=62&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations%23Management%20of%20Interest%20Rate%20Risk) The company manages interest rate risk to reduce exposure of net interest income to market rate changes, with models indicating asset-sensitivity to rising rates and liability-sensitivity to falling rates, projecting a 4.27% NII increase for a 200 bps rise and a 6.23% NII decrease for a 200 bps fall Estimated Impact of Instantaneous Parallel Rate Shifts (as of Dec 31, 2024) | Change in Interest Rates (bps) | Change in Net Interest Income (Amount) | Change in Net Interest Income (%) | | :--- | :--- | :--- | | +200 | $2,124,000 | 4.27% | | +100 | $1,099,000 | 2.21% | | -100 | ($2,082,000) | (4.19)% | | -200 | ($3,097,000) | (6.23)% | [Quantitative and Qualitative Disclosure about Market Risk](index=68&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosure%20about%20Market%20Risk) This section refers to the 'Management of Interest Rate Risk' discussion within Item 7 for information regarding the company's market risk - Information regarding market risk is provided in Item 7 under the heading "Management's Discussion and Analysis of Financial Condition and Results of Operations - Management of Interest Rate Risk"[311](index=311&type=chunk) [Financial Statements and Supplementary Data](index=68&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section includes management's report on effective internal controls, the independent auditor's unqualified opinion on financial statements, and notes detailing significant accounting policies and loan portfolio specifics [Report of Independent Registered Public Accounting Firm](index=69&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data%23Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) The independent auditor, RSM US LLP, issued an unqualified opinion on the consolidated financial statements, identifying the 'Allowance for Credit Losses—Loans' as a critical audit matter due to significant management judgment - The auditor issued an **unqualified opinion** on the consolidated financial statements[316](index=316&type=chunk) - The critical audit matter identified was the **'Allowance for Credit Losses—Loans'** due to significant auditor judgment required to evaluate management's subjective estimates for pooled loans[321](index=321&type=chunk)[323](index=323&type=chunk) [Note 1 – Summary of Significant Accounting Policies](index=78&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data%23Note%201%20%E2%80%93%20Summary%20of%20Significant%20Accounting%20Policies) This note outlines significant accounting policies, including the adoption of ASC 326 (CECL) on January 1, 2023, which resulted in a $2.324 million pre-tax increase to credit-related reserves and a $1.7 million net reduction to retained earnings - The company adopted **ASC 326 (CECL)** on January 1, 2023, using the modified retrospective approach[351](index=351&type=chunk) Pre-Tax Impact of Adopting ASC 326 on January 1, 2023 | Item | Impact (in thousands) | | :--- | :--- | | Increase in Allowance for Credit Losses | $1,907 | | Recognition of Unfunded Commitment Reserve | $417 | | **Total Pre-Tax Increase in Reserves** | **$2,324** | [Note 4 – Loans Receivable](index=91&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data%23Note%204%20%E2%80%93%20Loans%20Receivable) This note details the loan portfolio, with net loans receivable at $887.6 million as of December 31, 2024, segmented by risk characteristics, showing nonaccrual loans at $16.9 million, and outlining risk management practices Credit Quality of Loans by Risk Rating (December 31, 2024) | Risk Rating | Amount (in thousands) | % of Total Loans | | :--- | :--- | :--- | | Pass | $866,318 | 96.8% | | Special Mention | $7,446 | 0.8% | | Substandard | $4,459 | 0.5% | | Nonaccrual | $16,934 | 1.9% | | **Total** | **$895,157** | **100.0%** | - The company discontinued originating U.S. Government equipment and software finance transactions in the first quarter of 2023 due to **payment disputes**[415](index=415&type=chunk) [Note 11 – Regulatory Matters](index=114&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data%23Note%2011%20%E2%80%93%20Regulatory%20Matters) The Bank is subject to regulatory capital requirements, electing the Community Bank Leverage Ratio (CBLR) framework, and maintained a CBLR of 11.23% at December 31, 2024, exceeding the 9% well-capitalized threshold Bank's Community Bank Leverage Ratio (CBLR) | Date | Actual Ratio | Required for Capital Adequacy | | :--- | :--- | :--- | | December 31, 2024 | 11.23% | 9.00% | | December 31, 2023 | 10.85% | 9.00% | [Controls and Procedures](index=125&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of December 31, 2024, with no material changes to internal controls during Q4 2024 - Management concluded that the company's disclosure controls and procedures were **effective** as of December 31, 2024[501](index=501&type=chunk) - As a non-accelerated filer, the company's management report on internal control over financial reporting is **not subject to an attestation report** by its registered public accounting firm[503](index=503&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=125&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information regarding the company's directors, executive officers, Section 16(a) compliance, and Code of Ethics is incorporated by reference from the definitive Proxy Statement - Required information for this item is **incorporated by reference** from the company's Proxy Statement[508](index=508&type=chunk) [Executive Compensation](index=126&type=section&id=Item%2011.%20Executive%20Compensation) Information concerning executive compensation is incorporated by reference from the company's definitive Proxy Statement for its 2024 Annual Meeting of Stockholders - Required information for this item is **incorporated by reference** from the company's Proxy Statement[511](index=511&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=127&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information regarding security ownership of certain beneficial owners and management is incorporated by reference from the company's definitive Proxy Statement - Required information for this item is **incorporated by reference** from the company's Proxy Statement[512](index=512&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=127&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information concerning certain relationships, related party transactions, and director independence is incorporated by reference from the company's definitive Proxy Statement - Required information for this item is **incorporated by reference** from the company's Proxy Statement[512](index=512&type=chunk) [Principal Accountant Fees and Services](index=127&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information regarding principal accountant fees and services is incorporated by reference from the company's definitive Proxy Statement for its 2024 Annual Meeting of Stockholders - Required information for this item is **incorporated by reference** from the company's Proxy Statement[513](index=513&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=127&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists the financial statements filed under Item 8 and provides a comprehensive list of all exhibits filed with or incorporated by reference into the Form 10-K - This section lists the consolidated financial statements and exhibits filed with the annual report[514](index=514&type=chunk)[516](index=516&type=chunk) [Form 10-K Summary](index=129&type=section&id=Item%2016.%20Form%2010-K%20Summary) This item is not applicable to the company - Not applicable[520](index=520&type=chunk)

[Financial Performance Overview](index=2&type=section&id=Financial%20Performance%20Overview) A significant increase in credit loss provisions led BankFinancial Corporation to a net loss in Q4 2024, reversing prior quarter's profitability Q4 2024 Key Performance Metrics | Performance Metric | IVQ 2024 | IIIQ 2024 | IVQ 2023 | | :--- | :--- | :--- | :--- | | Return on assets (ROA) | (0.49)% | 0.56% | 0.56% | | Return on equity (ROE) | (4.43)% | 5.03% | 5.37% | | Net interest margin (TEB) | 3.49% | 3.47% | 3.48% | | Efficiency ratio | 84.54% | 76.73% | 77.39% | Summary Statement of Operations ($ thousands) | Account | IVQ 2024 | IIIQ 2024 | IVQ 2023 | | :--- | :--- | :--- | :--- | | Net interest income | $11,677 | $11,661 | $12,432 | | Provision for credit losses | $4,650 | $485 | $317 | | Noninterest income | $1,570 | $1,482 | $1,625 | | Noninterest expense | $11,199 | $10,084 | $10,879 | | **Net income (loss)** | **$(1,764)** | **$1,993** | **$2,079** | - The company recorded a diluted loss per share of **($0.14)** in Q4 2024, compared to earnings per share of **$0.16** in Q3 2024 and **$0.17** in Q4 2023[8](index=8&type=chunk) - For the full year 2024, net income was **$4.07 million**, a significant decrease from **$9.39 million** in 2023, primarily due to a higher provision for credit losses (**$5.03 million** in 2024 vs. **$313 thousand** in 2023) and lower net interest income[8](index=8&type=chunk) [Financial Condition (Balance Sheet)](index=2&type=section&id=Financial%20Condition%20(Balance%20Sheet)) Total assets reached $1.435 billion in Q4 2024, reflecting a strategic shift with decreased net loans and significantly increased securities holdings Statement of Financial Condition Highlights ($ thousands) | Account | IVQ 2024 | IIIQ 2024 | IVQ 2023 | | :--- | :--- | :--- | :--- | | **Total Assets** | **$1,434,814** | **$1,417,660** | **$1,487,384** | | Cash and equivalents | $118,985 | $160,283 | $207,997 | | Securities, at fair value | $360,530 | $264,905 | $153,203 | | Loans receivable, net | $887,586 | $923,939 | $1,050,761 | | **Total Liabilities** | **$1,278,437** | **$1,258,552** | **$1,332,001** | | Deposits | $1,217,541 | $1,199,412 | $1,261,623 | | **Stockholders' Equity** | **$156,377** | **$159,108** | **$155,383** | - The company has been actively reducing its loan portfolio, which decreased by **15.5%** year-over-year, while more than doubling its securities portfolio (up **135.3%** YoY) in a strategic balance sheet repositioning[5](index=5&type=chunk) [Loan Portfolio Analysis](index=4&type=section&id=Loan%20Portfolio%20Analysis) The total loan portfolio decreased to $887.6 million in Q4 2024, driven by reduced originations and significant payoffs, particularly in commercial loans Loan Portfolio Composition ($ thousands) | Loan Type | IVQ 2024 | IIIQ 2024 | IVQ 2023 | | :--- | :--- | :--- | :--- | | Multi–family residential real estate | $521,957 | $524,340 | $527,460 | | Nonresidential real estate | $108,153 | $109,799 | $118,016 | | Commercial loans and leases | $248,595 | $280,218 | $393,321 | | **Total Loans (Gross)** | **$895,157** | **$931,838** | **$1,059,106** | - Loan originations decreased to **$144.2 million** in Q4 2024 from **$165.9 million** in Q3 2024 For the full year, originations totaled **$671.2 million**, down from **$760.4 million** in 2023[10](index=10&type=chunk) - Loan payments and payoffs totaled **$175.9 million** in Q4 2024, exceeding new originations and contributing to the overall decline in the loan portfolio[10](index=10&type=chunk) [Credit Quality and Risk Management](index=5&type=section&id=Credit%20Quality%20and%20Risk%20Management) Nonperforming assets decreased to $18.3 million in Q4 2024, despite a significant $5.0 million net charge-off primarily from commercial loans Nonperforming Assets ($ thousands) | Category | IVQ 2024 | IIIQ 2024 | IVQ 2023 | | :--- | :--- | :--- | :--- | | Nonaccrual loans | $16,934 | $22,331 | $21,331 | | Foreclosed assets, net | $1,391 | $1,966 | $2,777 | | **Total Nonperforming Assets** | **$18,325** | **$24,297** | **$25,115** | - The ratio of nonperforming assets to total assets improved to **1.28%** in Q4 2024 from **1.71%** in Q3 2024[14](index=14&type=chunk) Allowance for Credit Losses Activity ($ thousands) | Activity | IVQ 2024 | IIIQ 2024 | | :--- | :--- | :--- | | Beginning balance | $7,899 | $8,142 | | Net charge–offs | $(4,974) | $(715) | | Provision for credit losses | $4,646 | $472 | | **Ending balance** | **$7,571** | **$7,899** | - A significant charge-off of **$5.0 million** in commercial loans and leases occurred in Q4 2024, leading to a high annualized net charge-off ratio of **(2.19)%** for the quarter[18](index=18&type=chunk) [Deposits, Funding, and Margin Analysis](index=7&type=section&id=Deposits,%20Funding,%20and%20Margin%20Analysis) Total deposits increased to $1.218 billion in Q4 2024, contributing to a slight widening of the net interest margin to 3.49% due to lower deposit costs Deposit Composition ($ thousands) | Deposit Type | IVQ 2024 | IIIQ 2024 | IVQ 2023 | | :--- | :--- | :--- | :--- | | Noninterest–bearing demand | $238,826 | $226,882 | $260,851 | | Interest–bearing NOW accounts | $277,059 | $276,551 | $306,548 | | Money market accounts | $305,538 | $306,679 | $297,074 | | Certificates of deposit - retail | $234,979 | $228,485 | $222,391 | | **Total Deposits** | **$1,217,541** | **$1,199,412** | **$1,261,623** | Yields and Cost of Funds | Metric | IVQ 2024 | IIIQ 2024 | IVQ 2023 | | :--- | :--- | :--- | :--- | | Yield on interest–earning assets | 4.88% | 4.94% | 4.71% | | Cost of interest–bearing liabilities | 1.96% | 2.04% | 1.70% | | Net interest rate spread | 2.92% | 2.90% | 3.01% | | Net interest margin (TEB) | 3.49% | 3.47% | 3.48% | [Capital Adequacy and Shareholder Returns](index=8&type=section&id=Capital%20Adequacy%20and%20Shareholder%20Returns) BankFinancial Corporation maintained robust capital ratios in Q4 2024, including a 18.70% CET1 ratio, while declaring a $0.10 cash dividend despite a net loss BankFinancial Corporation Capital Ratios | Ratio | IVQ 2024 | IIIQ 2024 | IVQ 2023 | | :--- | :--- | :--- | :--- | | Common Tier 1 (CET1) | 18.70% | 18.53% | 17.66% | | Risk–based total capital ratio | 21.79% | 21.56% | 20.70% | | Tier 1 leverage ratio | 10.90% | 11.11% | 10.54% | Common Stock Data | Metric | IVQ 2024 | IIIQ 2024 | IVQ 2023 | | :--- | :--- | :--- | :--- | | Book value per share ($) | $12.55 | $12.77 | $12.45 | | Cash dividends declared ($) | $0.10 | $0.10 | $0.10 | | Basic and diluted EPS ($) | $(0.14) | $0.16 | $0.17 | - The company did not repurchase any stock in the second half of 2024, after repurchasing **15,203 shares** in Q1 2024[23](index=23&type=chunk)

Financial Performance - Return on assets for Q3 2024 is 0.56%, a decrease from 0.63% in Q3 2023[3] - Return on equity for Q3 2024 is 5.03%, down from 6.16% in Q3 2023[3] - Net interest margin (TEB) for Q3 2024 is 3.47%, compared to 3.57% in Q3 2023[3] - Net income for Q3 2024 was $1,993,000, a decrease of 6.6% from $2,134,000 in Q2 2024[4] - Basic and diluted earnings per common share for Q3 2024 were $0.16, compared to $0.17 in Q2 2024[11] Assets and Liabilities - Total assets decreased to $1,417,660,000 in Q3 2024 from $1,505,454,000 in Q3 2023[3] - Total liabilities decreased to $1,258,552,000 in Q3 2024 from $1,351,699,000 in Q3 2023[3] - Total stockholders' equity increased to $159,108,000 in Q3 2024 from $153,755,000 in Q3 2023[3] - Total deposits decreased to $1,199,412,000 in Q3 2024 from $1,275,828,000 in Q3 2023[3] Income and Expenses - Total interest income for Q3 2024 was $16,886,000, a decrease of 4.3% from $17,655,000 in Q2 2024[4] - Net interest income after provision for credit losses was $11,176,000, down from $12,698,000 in the previous quarter, reflecting a decrease of 11.9%[4] - Noninterest income increased to $1,482,000 in Q3 2024, up 16.1% from $1,276,000 in Q2 2024[4] - Total noninterest expense decreased to $10,084,000, a reduction of 9.4% compared to $11,135,000 in Q2 2024[4] Loans and Credit Quality - Loans, net decreased to $923,939,000 in Q3 2024 from $987,745,000 in Q2 2024, representing a decline of 6.4%[5] - Loan originations for one-to-four family residential real estate were $149,000 in Q3 2024, significantly lower than $268,000 in Q2 2024[5] - The allowance for credit losses stood at $(7,899,000) in Q3 2024, slightly improved from $(8,142,000) in Q2 2024[5] - Nonperforming assets increased to $24,297 thousand in IIIQ 2024 from $22,712 thousand in IIQ 2024, representing an increase of 6.95%[7] - The ratio of nonperforming assets to total assets rose to 1.71% in IIIQ 2024, compared to 1.54% in IIQ 2024[7] Capital and Dividends - The common Tier 1 (CET1) capital ratio improved to 18.53% in Q3 2024, up from 17.60% in Q2 2024[11] - The dividend payout ratio increased to 62.52% in Q3 2024, up from 58.39% in Q2 2024[11] - Cash dividends declared on common stock remained steady at $0.10 per share for Q3 2024[11] - Stock repurchases were not reported in Q3 2024, compared to $156,000 in Q1 2024[11] Operational Metrics - Number of full-service offices remains stable at 18 in Q3 2024[3] - Average interest-earning assets to average interest-bearing liabilities ratio is 133.26 in Q3 2024, slightly down from 136.78 in Q3 2023[3] - Average loans decreased to $964,827 in Q3 2024, down 4.48% from $1,010,123 in Q2 2024[10] - Average interest-bearing deposits rose to $977,529 in Q3 2024, compared to $997,132 in Q2 2024[10] - The total average interest-earning assets yield was 4.94% in Q3 2024, down from 5.07% in Q2 2024[10]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, par value $0.01 per share BFIN The NASDAQ Stock Market LLC Large accelerated filer ☐ Accelerated filer ☐ Non-accelerated filer ☒ Smaller reporting company ☒ Emerging growth company ☐ FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period ended September 30, 2024 or ☐ TRANSITI ...

Financial Performance - Net income for the three months ended June 30, 2024, was $2.1 million, or $0.17 per common share[92] - Net income for the three months ended June 30, 2024, was $2.1 million, compared to $2.3 million for the same period in 2023[112] - Net income for the six months ended June 30, 2024, was $3.8 million, compared to $4.9 million for the same period in 2023[124] - Net interest income decreased by $367,000 to $12.6 million for the three months ended June 30, 2024, primarily due to a $1.8 million increase in interest expense[112] - Net interest income for the six months ended June 30, 2024, was $25.1 million, down from $26.4 million in the same period in 2023, primarily due to a $4.0 million increase in interest expense[124] - Noninterest income decreased by $185,000, mainly due to reduced seasonal captive insurance premium income[93] - Noninterest income increased by $37,000, or 3.0%, to $1.276 million for the three months ended June 30, 2024, compared to $1.239 million for the same period in 2023[119] - Noninterest income increased by $1.2 million to $2.7 million for the six months ended June 30, 2024, compared to $1.6 million for the same period in 2023, driven by a 24.3% increase in trust and insurance commissions[130] Assets and Liabilities - Total assets as of June 30, 2024, were $1.478 billion, with total loans of $987.7 million and total deposits of $1.252 billion[92] - Total assets decreased by $9.7 million, or 0.7%, to $1.478 billion at June 30, 2024, from $1.487 billion at December 31, 2023[107] - Total deposits decreased by $7.0 million (0.6%), with core deposits representing 82% of total deposits[99] - Total investment securities decreased by $16.6 million due to maturities and redemptions, with a weighted-average term to maturity of 1.24 years[96] - Total average interest-earning assets decreased by $60.1 million, or 4.1%, to $1.399 billion for the three months ended June 30, 2024[113] - Total deposits amounted to $996,938, with an interest expense of $8,960, resulting in a yield of 1.81%[128] Capital and Ratios - The Tier 1 leverage ratio was 10.75% at June 30, 2024, indicating a strong capital position[100] - The Bank's Community Bank Leverage Ratio was 11.32%, exceeding the required minimum of 9.00% for capital adequacy[147] - The Bank's actual capital amount for the Community Bank Leverage Ratio was $165,368 thousand, compared to the required amount of $131,469 thousand[150] - The Bank's Tier 1 leverage ratio target is at least 7.5%, and the total risk-based capital ratio target is at least 10.5%[149] - The minimum capital conservation buffer (CCB) is set at 2.5%[149] - The allowance for credit losses increased to 0.82% of total loans at June 30, 2024, compared to 0.81% at March 31, 2024[98] - The allowance for credit losses as a percentage of nonperforming loans was 39.12% at June 30, 2024, down from 40.22% at March 31, 2024[118] - The allowance for credit losses as a percentage of nonperforming loans was 39.12% at June 30, 2024, compared to 37.36% at December 31, 2023[130] Nonperforming Assets - The ratio of nonperforming assets to total assets remained at 1.54% as of June 30, 2024[98] - Nonperforming assets to total assets improved to 1.54% in 2024 from 1.69% in 2023[104] - As of June 30, 2024, total nonperforming assets were approximately $22.7 million, stable compared to $22.8 million in March 2024 and down from $25.1 million in December 2023[138] - The ratio of nonperforming assets to total assets remained at 1.54% as of June 30, 2024, unchanged from March 2024, compared to 1.69% as of December 31, 2023[138] - Nonaccrual loans totaled $20.8 million as of June 30, 2024, an increase of $305,000 from March 2024, while nonaccrual loans to total loans ratio was 2.09%[137] Interest Rates and Risk Management - The weighted average cost of interest-bearing liabilities increased by 74 basis points to 1.96% for the three months ended June 30, 2024[113] - The yield on interest-earning assets increased by 62 basis points to 5.07% for the three months ended June 30, 2024[113] - The net interest margin, on a tax-equivalent basis, remained stable at 3.63% for the six months ended June 30, 2024, and 2023[125] - The net interest rate spread for the six months ended June 30, 2024, was 3.09%[128] - In the event of a 200 basis point decrease in interest rates, the Bank would expect an 8.37% decrease in net portfolio value (NPV) and a $386,000 decrease in net interest income[159] - Conversely, a 200 basis point increase in interest rates would lead to a 3.26% decrease in NPV and a $381,000 increase in net interest income[159] - The dynamic GAP analysis indicates mismatches in the timing of asset and liability repricing, which is crucial for assessing interest rate risk[157] Expenses and Dividends - Total noninterest expense decreased by $85,000, or 0.8%, to $11.135 million for the three months ended June 30, 2024, compared to $11.220 million for the same period in 2023[120] - Compensation and benefits expense increased by $314,000, or 5.6%, to $5.943 million for the three months ended June 30, 2024[120] - Total noninterest expense rose by $1.4 million, or 6.5%, to $22.9 million for the six months ended June 30, 2024, primarily due to increased compensation and benefits expenses[131] - Compensation and benefits expense increased by $811,000, or 7.3%, to $12.0 million for the six months ended June 30, 2024, due to an increase in full-time equivalents[131] - The efficiency ratio was 80.39% for 2024, compared to 79.11% for 2023[105] - Dividend payout ratio increased to 58.39% in 2024 from 54.88% in 2023[105] - The Company declared cash dividends of $0.20 per share for each of the six months ended June 30, 2024, consistent with the same period in 2023[150]

Financial Performance - For the three months ended March 31, 2024, total noninterest income was $1,461,000, compared to $313,000 for the same period in 2023, representing a significant increase [21]. - Deposit service charges and fees for the three months ended March 31, 2024, were $809,000, slightly down from $816,000 in the same period of 2023 [21]. - Loan servicing fees increased to $156,000 in Q1 2024 from $129,000 in Q1 2023, reflecting a growth of approximately 21% [21]. - Trust and insurance commissions and annuities income rose to $450,000 in Q1 2024, up from $367,000 in Q1 2023, marking an increase of about 22.6% [21]. - Interchange income from debit cardholder transactions was $310,000 for the three months ended March 31, 2024, compared to $334,000 in the same period of 2023, indicating a decrease of approximately 7.2% [22]. Asset Management - The carrying value of other foreclosed assets as of March 31, 2024, was $387,000, with a valuation allowance of $44,000 [14]. - The total loans receivable, net of allowance for credit losses, was $1,007,980,000 as of March 31, 2024 [21]. - The estimated fair value of financial instruments is based on various inputs, with Level 3 inputs reflecting significant unobservable assumptions [28]. - As of March 31, 2024, the fair value of municipal securities was $926,000, U.S. Treasury Notes were $92,709,000, and U.S. government-sponsored agencies were $141,676,000, totaling $239,549,000 in fair value measurements [34]. - The ending balance of foreclosed assets as of March 31, 2024, was $2,332,000, compared to $1,393,000 at the end of 2023 [38]. - The valuation allowance for foreclosed assets had an ending balance of $44,000 as of March 31, 2024 [38]. Debt and Credit - The Company recorded a gain of $107,000 on the repurchase of subordinated notes in March 2024 [25]. - The Company had no outstanding balance on its $5.0 million unsecured line of credit as of March 31, 2024 [26]. - The company has fixed-rate advances from FHLB totaling $25,000,000, with rates ranging from 4.06% to 4.55% [40]. - The company has a line of credit due March 28, 2025, with an interest rate of 8.00% [40]. Foreclosure and Real Estate - In Q1 2023, the company recorded a valuation adjustment of $553,000 when transferring two retail branches to premises held-for-sale [32]. - There were no consumer mortgage loans secured by residential real estate properties in foreclosure proceedings as of March 31, 2024 [38]. - The company reported new foreclosed assets of $49,000 in Q1 2024, with valuation reductions from sales amounting to $67,000 [38]. Shareholder Information - As of May 8, 2024, there were 12,460,678 shares of common stock outstanding [46].

Loan and Deposit Performance - As of December 31, 2023, total loans decreased by $176.0 million (14%) to $1.051 billion, with total commercial loans and leases down by $159.7 million (29%) to $393.3 million[53]. - Total deposits decreased by $113.3 million (8%) to $1.3 billion, with core deposits representing 82.4% of total deposits[56]. - The company originated loans and leases for investment totaling $760.4 million for the year ended December 31, 2023, compared to $1.252 billion in 2022[301]. - Total deposits amounted to $1.262 billion, with interest-bearing deposits at $1.001 billion and noninterest-bearing demand deposits at $260.9 million[291]. - Net deposits decreased by $113.3 million for the year ended December 31, 2023, compared to a decrease of $113.5 million in 2022[303]. Credit Quality and Allowance for Credit Losses - The ratio of nonperforming loans to total loans was 2.11% and nonperforming assets to total assets was 1.69% at December 31, 2023, primarily due to two U.S. Government equipment finance transactions totaling $18.9 million[54]. - The allowance for credit losses increased to 0.79% of total loans at December 31, 2023, compared to 0.66% at the end of 2022[55]. - The allowance for credit losses was $8.3 million, which is 0.79% of total loans and 37.36% of nonperforming loans as of December 31, 2023[72]. - The company may need to increase its allowance for credit losses in response to future credit deterioration and supervisory reviews by the OCC[72]. - The allowance for credit losses balance was $8.3 million as of December 31, 2023, with no specific loss reserve for individually evaluated loans[316]. - The total allowance for credit losses increased to $10,036 million post-ASC 326 adoption from $8,129 million pre-adoption, reflecting a rise of $1,907 million[386]. - The allowance for credit losses for one-to-four family residential real estate rose to $380 million from $281 million, an increase of $99 million[386]. - The allowance for multi-family residential real estate increased by $630 million, reaching $4,647 million post-adoption[386]. - The allowance for commercial loans and leases saw a significant rise of $1,122 million, totaling $3,670 million post-ASC 326 adoption[386]. Financial Performance - Net income for the year ended December 31, 2023, was $9.393 million, down from $10.494 million in 2022, a decrease of about 10.5%[320]. - Total interest income increased to $66.155 million in 2023 from $55.296 million in 2022, representing a growth of approximately 19.4%[320]. - Noninterest income decreased to $4.417 million in 2023 from $5.976 million in 2022, a decline of approximately 26.1%[320]. - The provision for credit losses was $313,000 in 2023, down from $1.828 million in 2022[320]. - The net income for the year ended December 31, 2023, was $9,393,000, down from $10,494,000 for the year ended December 31, 2022[349]. Capital and Regulatory Compliance - The Company's Tier 1 leverage ratio was 10.54% at December 31, 2023, and the tangible book value per share increased to $12.45 from $11.90 year-over-year[57]. - The total risk-based capital ratio and Tier 1 leverage ratio targets are at least 10.5% and 7.5%, respectively, with the Bank being well-capitalized as of December 31, 2023[306]. - The company is subject to enhanced regulatory scrutiny due to a concentration of commercial real estate loans, necessitating improved risk management techniques[69]. - The company has developed policies to comply with anti-money laundering regulations, but noncompliance could lead to significant penalties and operational risks[77]. - The company assessed its internal control over financial reporting as effective as of December 31, 2023[339]. Market Conditions and Future Outlook - The Company expects to accelerate growth in commercial loan originations in 2024, although growth in multi-family residential and commercial real estate portfolios may be limited due to anticipated market interest rates[58]. - The Company anticipates further volatility in market interest rates and loan demand due to changes in U.S. Government and Federal Reserve Bank policies during 2024[60]. - The Federal Reserve's monetary policies, including interest rate adjustments, significantly influence the company's earnings and growth prospects[78]. - The company faces risks related to economic conditions, including the impact of the COVID-19 pandemic and government fiscal stimulus on loan demand and deposit supply[80]. - Adverse local economic conditions, particularly in the Chicago metropolitan area, could negatively affect the company's financial condition and loan repayment capabilities[81]. Shareholder Returns and Stock Performance - The Company maintained its quarterly dividend rate at $0.10 per common share throughout 2023[57]. - The Company paid $2.4 million to repurchase shares and $5.1 million in cash dividends to stockholders during 2023[330]. - The Board of Directors declared four quarterly cash dividends totaling $5.1 million in 2023, with a cash dividend of $0.10 per share for each quarter[333]. - The Company repurchased 8,070,375 shares of its common stock out of the 8,267,771 shares authorized as of December 31, 2023[307]. Cash Flow and Liquidity - The company reported a net change in cash and cash equivalents of $111,713,000, a significant improvement from a decrease of $435,391,000 in 2022[352]. - Ending cash and cash equivalents increased to $178,484,000 from $66,771,000, reflecting strong liquidity[352]. - Net cash from operating activities was $9,221,000, slightly down from $9,294,000 in the previous year[352]. - Interest paid increased to $14,077,000 from $4,468,000, indicating higher borrowing costs[352]. - As of December 31, 2023, there were no known trends or uncertainties that could materially impact liquidity[304].

BankFinancial Corporation (NASDAQ:BFIN) Q4 2023 Earnings Conference Call February 2, 2024 10:30 AM ET Company Participants Morgan Gasior - Chairman & Chief Executive Officer Katie Multon - Investor Relations Conference Call Participants Brian Martin - Janney Charles Winnick - Fulcrum Ross Haberman - RLH Investments Jason Stock - M3 Funds Operator Good day, and thank you for standing by. Welcome to the BankFinancial Corp. 2024 Year End Earnings Conference Call. At this time, all participants are in a listen- ...