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Bankfinancial Corp. (BFIN)
NASDAQ:BFIN
US Market
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Bankfinancial (BFIN) AI Stock Analysis

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BFIN

Bankfinancial

(NASDAQ:BFIN)

Rating:68Neutral
Price Target:
$13.00
â–²(11.78%Upside)
The most significant factor for Bankfinancial's score is its strong financial performance, which shows positive revenue growth and solid profit margins, despite some weaknesses in net income and leverage. Technical analysis presents a neutral outlook with no strong momentum signals. The valuation indicates potential overvaluation, but the attractive dividend yield may interest income-focused investors.

Bankfinancial (BFIN) vs. SPDR S&P 500 ETF (SPY)

Bankfinancial Business Overview & Revenue Model

Company DescriptionBankFinancial Corporation (BFIN) is a publicly traded financial institution that operates primarily within the banking sector. The company offers a wide array of financial products and services, including personal and business banking, loans, mortgages, and investment services. BankFinancial focuses on serving both individual and commercial clients with a comprehensive suite of financial solutions tailored to meet their unique needs.
How the Company Makes MoneyBankFinancial Corporation generates revenue through a variety of financial activities typically associated with banking institutions. The primary sources of income include interest earned on loans and mortgages extended to customers, which constitutes a significant portion of their revenue. Additionally, the company earns fees from various banking services such as account maintenance, transaction fees, and financial advisory services. Investment income from securities and other financial instruments also contributes to the company’s earnings. BankFinancial may engage in strategic partnerships with other financial entities to enhance service offerings and increase revenue streams.

Bankfinancial Earnings Call Summary

Earnings Call Date:Feb 03, 2025
(Q4-2023)
|
% Change Since: -0.26%|
Next Earnings Date:Apr 22, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong growth in commercial finance and stable credit quality, but it was overshadowed by declines in loan originations, tight market spreads, and significant shareholder unrest about long-term performance and strategic direction. The management showed a focus on operational efficiency, but the challenges in the competitive market and shareholder concerns were prominent.
Q4-2023 Updates
Positive Updates
Strong Commercial Finance Growth
The commercial finance segment showed promising growth with increased resource allocation and a focus on expanding the pipeline, particularly in the health care and lessor finance sectors.
Equipment Finance Repositioning
Successfully repositioned $200 million from Equipment Finance into higher-rate originations, with expectations of $130 million cash flows in 2024 leading to an increase in yields by 200 to 250 basis points.
Stable Credit Quality
Credit quality remained stable with non-performing assets improving, and further enhancement expected as specific equipment deals are resolved.
Operational Efficiency and Cost Control
Expenses projected between $41 million to $42.5 million, with efforts to optimize marketing expenses and manage inflationary pressures.
Negative Updates
Loan Originations and Interest Income Decline
A decline in loan originations and intra-period line activity led to a $200,000 decrease in interest income in Q4 2023.
Tight Spreads and Competitive Market
Facing tight spreads in high-quality investment-grade corporates and competitive pressures in the middle market and small-ticket spaces.
Shareholder Concerns and Strategic Direction
Shareholders expressed dissatisfaction with long-term stock performance and suggested exploring strategic alternatives such as selling the bank.
Uncertainty in Real Estate and Equipment Finance Sectors
Real estate originations declined due to high interest rates, and there are some uncertainties in equipment finance utilization and credit quality concerns in leasing portfolios.
Company Guidance
During the BankFinancial Corp. earnings call for the fourth quarter of 2023, CEO Morgan Gasior provided detailed guidance for the upcoming year. The company plans to focus on growing its commercial finance sector by reallocating resources, with a goal of tripling personnel compared to early 2023. Despite steady commercial finance balances, fourth-quarter draw activity was lower, impacting intra-quarter interest income. The bank anticipates a $130 million cash flow from the Equipment Finance portfolio in 2024, aiming to reposition these funds to enhance yields by 200-250 basis points. They have observed stabilization in deposits, targeting a loan-to-deposit ratio of 90% and projecting loan growth between 5% and 8%. For 2024, BankFinancial expects expenses to range between $41 million and $42.5 million, influenced by origination levels and marketing investments. The company is also focusing on maintaining net interest margin stability in the first half of the year, with potential expansion in the latter half as cash flows are reinvested.

Bankfinancial Financial Statement Overview

Summary
Bankfinancial exhibits strong revenue growth and solid profit margins, although there is room for improvement in net income performance. The balance sheet is generally healthy, but attention to debt levels is necessary to mitigate leverage concerns. Cash flow remains positive, supporting operational and investment activities effectively. Overall, the company shows financial resilience with potential areas for strategic enhancement.
Income Statement
78
Positive
Bankfinancial demonstrated a healthy revenue growth in TTM (Trailing-Twelve-Months) with a 26.5% increase from the previous year. The gross profit margin is robust at 88.7%, indicating strong cost management. However, the net profit margin has slightly decreased to 7.1%, suggesting increased expenses or competitive pressures. EBIT margin remains stable at 33.6%, supporting profitability. EBITDA margin is notably lower at 13.4%, influenced by depreciation/amortization costs.
Balance Sheet
72
Positive
The company maintains a solid equity position with an equity ratio of 10.9%, although the debt-to-equity ratio is relatively high at 0.21, indicating leverage risk. Return on equity (ROE) stands at 2.8%, reflecting moderate efficiency in generating profits from equity. The overall asset base shows stability, but a high focus on managing liabilities is advisable.
Cash Flow
74
Positive
Operating cash flow to net income ratio at 1.6 indicates good cash generation relative to earnings. Free cash flow has decreased slightly, but the company maintains positive free cash flow, critical for ongoing operations. The free cash flow to net income ratio is 1.1, reflecting efficient cash conversion. Despite fluctuations in investing cash flow, the company effectively manages its capital expenditures.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue73.51M74.38M71.17M61.27M52.26M58.24M
Gross Profit48.67M49.22M56.53M54.96M50.70M51.20M
EBITDA2.86M5.18M14.29M15.10M11.83M14.55M
Net Income4.44M4.07M9.39M10.49M7.41M9.16M
Balance Sheet
Total Assets1.44B1.43B1.49B1.58B1.70B1.60B
Cash, Cash Equivalents and Short-Term Investments511.93M414.82M361.20M277.11M587.86M527.33M
Total Debt33.25M38.74M44.68M19.63M24.59M8.00M
Total Liabilities1.28B1.28B1.33B1.42B1.54B1.42B
Stockholders Equity157.50M156.38M155.38M151.67M157.47M172.93M
Cash Flow
Free Cash Flow4.98M5.47M7.35M7.35M5.43M11.51M
Operating Cash Flow6.94M7.56M9.22M9.29M7.77M13.52M
Investing Cash Flow55.23M-46.14M197.92M-316.77M-101.13M199.07M
Financing Cash Flow-41.78M-55.08M-95.43M-127.91M92.03M100.58M

Bankfinancial Technical Analysis

Technical Analysis Sentiment
Positive
Last Price11.63
Price Trends
50DMA
11.76
Positive
100DMA
12.05
Negative
200DMA
12.22
Negative
Market Momentum
MACD
0.02
Negative
RSI
52.01
Neutral
STOCH
55.57
Neutral
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 11.63 is below the 20-day moving average (MA) of 11.69, below the 50-day MA of 11.76, and below the 200-day MA of 12.22, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 52.01 is Neutral, neither overbought nor oversold. The STOCH value of 55.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BFIN.

Bankfinancial Risk Analysis

Bankfinancial disclosed 39 risk factors in its most recent earnings report. Bankfinancial reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Bankfinancial Peers Comparison

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$163.05M12.958.37%3.17%16.21%10.91%
74
Outperform
$163.78M9.6212.69%3.77%6.08%4.51%
72
Outperform
$144.07M14.937.97%3.49%20.82%-48.08%
68
Neutral
$130.32M10.6410.83%3.68%12.53%2.45%
68
Neutral
$144.92M32.612.83%4.30%0.83%-47.11%
66
Neutral
$161.56M17.164.93%1.79%28.86%-20.64%
58
Neutral
HK$92.20B5.63-3.20%4.66%5.50%-56.25%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BFIN
Bankfinancial
11.80
0.43
3.78%
FCAP
First Capital
39.03
9.91
34.03%
OVBC
Ohio Valley Banc
35.05
12.77
57.32%
PEBK
Peoples Bancorp Of North Carolina
29.90
-0.88
-2.86%
CBFV
CB Financial Services
31.27
7.15
29.64%
HNVR
Hanover Bancorp Inc
22.54
6.30
38.79%

Bankfinancial Corporate Events

Executive/Board ChangesRegulatory Filings and Compliance
BankFinancial Appoints Benjamin Mackovak to Audit Committee
Neutral
Jul 16, 2025

On July 15, 2025, BankFinancial Corporation’s Board of Directors appointed Benjamin Mackovak to the Audit Committee, replacing Glen Wherfel due to his retirement. This change reflects the company’s adherence to Nasdaq and SEC regulations, ensuring all Audit Committee members are independent directors.

The most recent analyst rating on (BFIN) stock is a Hold with a $11.00 price target. To see the full list of analyst forecasts on Bankfinancial stock, see the BFIN Stock Forecast page.

Executive/Board ChangesShareholder Meetings
BankFinancial Prepares for Director Wherfel’s Retirement
Neutral
Jul 2, 2025

The proxy statement for BankFinancial Corporation’s 2025 Annual Meeting omitted Director Glen Wherfel’s membership on the Audit Committee as of December 31, 2024. Director Wherfel will retire at the 2025 Annual Meeting, and the company plans to appoint a replacement to ensure the Audit Committee remains compliant with listing requirements.

The most recent analyst rating on (BFIN) stock is a Hold with a $11.00 price target. To see the full list of analyst forecasts on Bankfinancial stock, see the BFIN Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 22, 2025