BankFinancial Corporation reported a net loss of $359,000, or $(0.03) per share, for the second quarter of 2025, a significant decline from a net income of $2.1 million, or $0.17 per share, in the same period last year. For the first half of 2025, the company recorded a net income of $1.7 million, down from $3.8 million in the prior year. The decrease in profitability was attributed to a $1.3 million drop in net interest income, primarily due to reduced balances in healthcare finance lines of credit and other loan categories, alongside a decline in interest income.
Total assets for BankFinancial stood at $1.429 billion as of June 30, 2025, a slight decrease of $5.6 million from $1.435 billion at the end of 2024. The decline was mainly driven by a $91.6 million reduction in loans receivable, which fell to $796 million, while cash and cash equivalents increased by 32.3% to $112.2 million. The company’s securities portfolio grew by $76.4 million to $437 million, reflecting a strategic shift towards more liquid assets amid ongoing credit risk management efforts.
In terms of operational metrics, total deposits decreased by $1.9 million to $1.216 billion, with noninterest-bearing demand deposits dropping by 6.9%. The company’s allowance for credit losses increased to 1.13% of total loans, up from 0.85% at the end of 2024, reflecting heightened caution in light of economic uncertainties. The ratio of nonperforming assets to total assets improved to 0.85%, down from 1.28% at the end of the previous year, indicating progress in resolving nonperforming loans.
Looking ahead, BankFinancial is focused on enhancing its loan portfolio through targeted marketing efforts, particularly in commercial finance, while managing interest rate risk through a strategic emphasis on shorter-duration securities. The company is also preparing for potential litigation related to a U.S. Government equipment finance transaction, which has led to the establishment of a specific reserve of $2.1 million. Management remains optimistic about navigating the current economic landscape, although they acknowledge the challenges posed by fluctuating interest rates and market conditions.
About BankFinancial CORP
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