Bankfinancial (BFIN) AI Stock Analysis

• Market Cap: $138.81M
• Dividend Yield: 3.14%
• Average Volume (3M): 62.14K
• Price to Earnings (P/E): 59.9
• Beta (1Y): 0.41
• Revenue Growth: -2.62%
• EPS Growth: -70.70%
• Country: US
• Employees: 191
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.36
• Shares Outstanding: 12,460,678
• 10 Day Avg. Volume: 46,219
• 30 Day Avg. Volume: 62,139
• PEG Ratio: -0.70
• Price to Book (P/B): 1.01
• Price to Sales (P/S): 2.13
• P/FCF Ratio: 28.94
• Enterprise Value/Market Cap: 1.23
• Enterprise Value/Revenue: 2.34
• Enterprise Value/Gross Profit: 3.66
• Enterprise Value/Ebitda: -20.67
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: $13.00 ▲(2.04% Upside)

Bankfinancial's overall stock score reflects moderate financial performance with stable balance sheet but declining profitability and cash flow challenges. Technical analysis indicates strong momentum, though valuation concerns arise from a high P/E ratio. Corporate events introduce legal risks, offset by positive dividend news.

Positive Factors

Stable Balance Sheet

A stable balance sheet with low leverage enhances financial resilience, allowing Bankfinancial to navigate economic fluctuations effectively.

Dividend Declaration

The consistent dividend payout reflects financial stability and commitment to returning value to shareholders, supporting long-term investor confidence.

Revenue Growth

Positive revenue growth indicates expanding business operations and market presence, crucial for sustaining long-term financial health.

Negative Factors

Declining Profitability

Declining profitability margins suggest operational inefficiencies, which could hinder future earnings and competitive positioning.

Cash Flow Challenges

Reduced cash flow growth limits the company's ability to invest in growth opportunities and manage financial obligations effectively.

Legal Risks from Merger

Legal challenges from the merger introduce uncertainty and potential financial liabilities, impacting strategic focus and resource allocation.

Bankfinancial Business Overview & Revenue Model

Company Description

Bankfinancial (BFIN) is a financial services institution that provides a wide range of banking products and services, including personal and commercial banking, mortgage lending, wealth management, and investment advisory services. Catering to both individual and business clients, Bankfinancial is dedicated to delivering innovative financial solutions while maintaining a strong commitment to customer service and community engagement. The company operates primarily in the retail banking sector, with a focus on enhancing financial literacy and providing accessible banking options.

How the Company Makes Money

Bankfinancial generates revenue through several key streams: interest income from loans and mortgages, fees from account services and transactions, and earnings from investment management services. The majority of its revenue comes from the interest rate spread between the interest it earns on loans and the interest it pays on deposits. Additionally, Bankfinancial earns significant income from service fees related to account maintenance, ATM usage, and overdraft services. The company also benefits from partnerships with other financial institutions and technology firms, which enhance its service offerings and broaden its customer base, thereby contributing to its overall profitability.

Bankfinancial Financial Statement Overview

Summary

Bankfinancial demonstrates a stable financial position with low leverage and efficient cash management. However, the company faces challenges in revenue growth and operational efficiency, as indicated by declining revenue and negative EBITDA margins.

Income Statement

Bankfinancial's income statement shows a mixed performance. The TTM data indicates a decline in revenue growth rate at -1.15%, suggesting challenges in revenue generation. However, the company maintains a stable gross profit margin of approximately 66%, indicating efficient cost management. The net profit margin is modest at 6.05%, reflecting moderate profitability. The EBIT margin is relatively low at 7.27%, and the EBITDA margin is negative, highlighting potential operational inefficiencies or high non-cash expenses.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.21, indicating low leverage and prudent financial management. The return on equity (ROE) is modest at 2.82%, suggesting limited profitability relative to shareholder equity. The equity ratio is not explicitly calculated, but the company's low debt levels imply a strong equity position.

Cash Flow

Cash flow analysis reveals a positive trajectory with a significant free cash flow growth rate of 46.93% in the TTM period, indicating improved cash generation capabilities. The operating cash flow to net income ratio is low at 0.56%, suggesting potential challenges in converting income to cash. However, the free cash flow to net income ratio is healthy at 71.81%, reflecting efficient cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	72.71M	74.38M	71.17M	61.27M	52.26M	58.24M
Gross Profit	46.61M	49.22M	56.53M	54.96M	50.70M	51.20M
EBITDA	-8.25M	5.18M	14.29M	15.10M	11.83M	14.55M
Net Income	2.32M	4.07M	9.39M	10.49M	7.41M	9.16M
Balance Sheet
Total Assets	1.45B	1.43B	1.49B	1.58B	1.70B	1.60B
Cash, Cash Equivalents and Short-Term Investments	632.09M	414.82M	361.20M	277.11M	587.86M	527.33M
Total Debt	28.27M	38.74M	44.68M	19.63M	24.59M	8.00M
Total Liabilities	1.30B	1.28B	1.33B	1.42B	1.54B	1.42B
Stockholders Equity	157.35M	156.38M	155.38M	151.67M	157.47M	172.93M
Cash Flow
Free Cash Flow	2.68M	5.47M	7.35M	7.35M	5.43M	11.51M
Operating Cash Flow	3.44M	7.56M	9.22M	9.29M	7.77M	13.52M
Investing Cash Flow	-92.36M	-46.14M	197.92M	-316.77M	-101.13M	199.07M
Financing Cash Flow	33.39M	-55.08M	-95.43M	-127.91M	92.03M	100.58M

Bankfinancial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.74
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BFIN, the sentiment is Positive. The current price of 12.74 is above the 20-day moving average (MA) of 11.85, above the 50-day MA of 11.60, and above the 200-day MA of 11.76, indicating a bullish trend. The MACD of 0.32 indicates Negative momentum. The RSI at 75.79 is Negative, neither overbought nor oversold. The STOCH value of 92.43 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BFIN.

Bankfinancial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FNWD	73 Outperform	$168.97M	20.47	5.05%	1.20%	-7.20%	-29.17%
RMBI	72 Outperform	$141.81M	12.75	7.60%	4.27%	7.54%	25.25%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
BFIN	62 Neutral	$138.81M	59.92	1.46%	3.14%	-2.62%	-70.70%
BCBP	58 Neutral	$145.41M	175.83	0.86%	7.63%	-8.73%	-95.86%
PNBK	55 Neutral	$156.39M	-0.51	-35.87%	―	-11.99%	63.64%

Bankfinancial Corporate Events

BankFinancial Faces Lawsuits Over Merger Proxy Statements

On August 11, 2025, BankFinancial Corporation announced a merger agreement with First Financial Bancorp, where BankFinancial would merge into First Financial, with the latter continuing as the surviving entity. Following the merger announcement, BankFinancial faced lawsuits from purported stockholders alleging misleading proxy statements related to the merger. To address these claims and avoid litigation delays, BankFinancial made additional disclosures, although it denies any wrongdoing.

Bankfinancial Amends Executive Agreement Amid Merger Plans

On November 7, 2025, BankFinancial Corporation and First Financial Bancorp. announced an amendment to the employment agreement with Gregg T. Adams, President of the Marketing & Sales Division, in connection with their merger agreement dated August 11, 2025. The amendment outlines severance payment conditions for Mr. Adams, contingent on his continued employment through September 30, 2026, with adjustments to avoid excess parachute payments under tax regulations.

BankFinancial Declares Cash Dividend for Shareholders

On October 30, 2025, BankFinancial Corporation’s Board of Directors declared a cash dividend of $0.10 per common share, payable on November 28, 2025, to stockholders of record on November 14, 2025. The Board will evaluate future dividends considering regulatory requirements and other factors, impacting the company’s financial strategies and stakeholder interests.

BankFinancial Releases Q3 2025 Quarterly Report

On October 30, 2025, BankFinancial Corporation released its Quarterly Report for the third quarter ending September 30, 2025, along with a financial and statistical supplement covering the latest five quarters. The report highlights the company’s financial performance, including metrics such as return on assets and equity, net interest margin, and efficiency ratio. The data indicates a mixed performance with fluctuations in key financial indicators, reflecting the company’s ongoing adjustments in a dynamic market environment.