BankFinancial Corporation reported a net income of $4.1 million for the fiscal year ending December 31, 2024, translating to basic and diluted earnings per share of $0.33. This marks a significant decline from the previous year's net income of $9.4 million, or $0.74 per share. The decrease in profitability was primarily attributed to a $4.8 million pre-tax charge related to the settlement of a $10.5 million U.S. Government Contract Disputes Act claim. Total assets decreased by 3.5% to $1.435 billion, driven by reductions in cash and loans receivable, partially offset by an increase in securities.
Interest income rose by 3.7% to $68.6 million, largely due to higher yields from the commercial loan portfolio. However, interest expense surged by 40.5% to $20.1 million, reflecting increased rates on deposit accounts. Consequently, net interest income before provisions for credit losses fell by 6.5% to $48.4 million. Noninterest income increased by 31.1% to $5.8 million, bolstered by growth in deposit-related fees and trust income, with no losses recorded on the sale of securities or closed branch facilities.
Operationally, the bank's total net loans decreased by 15.5% to $887.6 million, with notable declines in commercial loans and leases, which fell by 36.8%. The loan portfolio remains concentrated in multi-family residential real estate, which constituted 58.3% of total loans. Total deposits also decreased by 3.5% to $1.218 billion, influenced by increased competition for deposits from regional banks and non-bank money market funds. The bank's loan-to-deposit ratio stood at 72.9%, down from 83.3% in the previous year.
Looking ahead, BankFinancial Corporation aims to accelerate growth in commercial loan originations while managing risks associated with market interest rates and economic conditions. The bank plans to enhance its commercial deposit account relationships and expand its Trust Department capabilities to drive noninterest income. Despite the challenges posed by fluctuating interest rates and competitive pressures, the bank's management remains optimistic about achieving selective growth in its loan and deposit portfolios in alignment with its long-term objectives.
About BankFinancial CORP
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