BankFinancial (BFIN) 8-K Filing of Quarterly Report on Form 10-Q

Exhibit 99.2

BANKFINANCIAL CORPORATION

SECOND QUARTER 2007

QUARTERLY FINANCIAL AND STATISTICAL SUPPLEMENT

FOR THE LATEST FIVE QUARTERS

Note: Certain reclassifications have been made in the prior period’s financial statements and reflected in the Selected Quarterly Financial and Statistical Data tables to conform with the current period’s presentation.

The information and statistical data contained herein have been prepared by BankFinancial Corporation and have been derived or calculated from selected quarterly and period-end historical financial statements prepared in accordance with accounting principles generally accepted in the United States. BankFinancial Corporation is under no obligation to update, keep current or continue to provide the information contained herein. This information is provided solely for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any securities or establish any business relationships with BankFinancial Corporation or its subsidiary.

BANKFINANCIAL CORPORATION

SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA

Latest Five Quarters

(Dollars in thousands; except per share) – (Unaudited)

PERFORMANCE MEASUREMENTS:

	2007						2006
	IIQ			IQ			IVQ			IIIQ			IIQ
Return on assets (ratio of net income to average total assets) (1)		0.61	%		0.42	%		0.30	%		0.68	%		0.69	%
Return on equity (ratio of net income to average equity) (1)		3.01			2.03			1.48			3.34			3.43
Net interest rate spread (1)		2.88			2.98			2.91			2.86			2.84
Net interest margin (1)		3.74			3.84			3.74			3.71			3.62
Efficiency ratio		80.79			81.66			93.01			75.37			73.68
Noninterest expense to average total assets (1)		3.28			3.31			3.82			3.14			2.95
Average interest-earning assets to average interest-bearing liabilities		131.30			132.31			131.53			133.87			132.60
Offices		18			18			18			18			18
Employees (full time equivalents)		418			425			438			452			468
SUMMARY INCOME STATEMENT:
	2007						2006
	IIQ			IQ			IVQ			IIIQ			IIQ
Total interest income	$	23,111		$	23,793		$	23,867		$	24,244		$	23,683
Total interest expense		9,760			9,765			9,854			9,792			9,363
Net interest income before provision		13,351			14,028			14,013			14,452			14,320
Provision (credit) for loan losses		(354	)		581			(537	)		49			156
Net interest income		13,705			13,447			14,550			14,403			14,164
Noninterest income		2,327			2,042			2,533			2,658			2,587
Noninterest expense		12,666			13,122			15,390			12,895			12,457
Income before income tax		3,366			2,367			1,693			4,166			4,294
Income tax expense		1,028			716			486			1,371			1,390
Net income	$	2,338		$	1,651		$	1,207		$	2,795		$	2,904
Basic earnings per common share	$	0.11		$	0.08		$	0.06		$	0.12		$	0.13
Diluted earnings per common share	$	0.11		$	0.08		$	0.06		$	0.12		$	0.13
NONINTEREST INCOME AND EXPENSE:
	2007						2006
	IIQ			IQ			IVQ			IIIQ			IIQ
Noninterest Income:
Deposit service charges and fees	$	918		$	835		$	1,022		$	1,142		$	1,117
Other fee income		499			461			507			466			482
Insurance commissions and annuities income		225			244			378			363			352
Gain on sales of loans		1			48			61			95			53
Gain (loss) on sales of investment securities		—			—			(43	)		89			55
Gain on disposition of premises and equipment		7			6			1			—			1
Loan servicing fee income		214			211			227			230			237
Amortization and impairment of servicing assets		(106	)		(95	)		(121	)		(120	)		(146	)
REO operations		—			—			1			(15	)		(26	)
Earnings on bank owned life insurance		135			—			—			—			—
Other		434			332			500			408			462
Total noninterest income	$	2,327		$	2,042		$	2,533		$	2,658		$	2,587
Noninterest Expense:
Compensation and benefits	$	7,860		$	8,437		$	10,674		$	8,241		$	7,875
Office occupancy and equipment		1,399			1,507			1,416			1,530			1,340
Advertising		455			228			243			396			389
Data processing		823			749			855			873			825
Supplies, telephone and postage		484			568			560			583			450
Amortization of intangibles		469			477			489			496			495
Other		1,176			1,156			1,153			776			1,083
Total noninterest expenses	$	12,666		$	13,122		$	15,390		$	12,895		$	12,457

(1) Annualized

Page 2

BANKFINANCIAL CORPORATION

SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA

Latest Five Quarters

(Dollars in thousands; except per share) – (Unaudited)

SUMMARY BALANCE SHEET:

	2007						2006
	IIQ			IQ			IVQ			IIIQ			IIQ
ASSETS:
Cash	$	32,071		$	35,357		$	38,286		$	34,515		$	31,475
Interest-bearing deposits and short-term investments		33,887			30,947			29,051			2,964			1,566
Securities available for sale, net		69,085			106,884			117,853			157,396			251,927
Loans held for sale		620			143			298			605			1,882
Loans receivable, net		1,282,522			1,298,319			1,329,915			1,312,114			1,280,365
Federal Home Loan Bank stock		15,598			15,598			15,598			18,911			18,911
Premises and equipment		34,437			34,571			35,005			35,069			35,206
Intangible assets		31,268			31,750			32,227			32,727			33,387
Other assets		32,317			13,382			14,889			15,676			16,911
Total assets	$	1,531,805		$	1,566,951		$	1,613,122		$	1,609,977		$	1,671,630
LIABILITIES AND EQUITY:
Deposits	$	1,105,237		$	1,105,846		$	1,129,585		$	1,106,249		$	1,137,664
Borrowings		100,862			134,300			138,148			165,082			175,349
Other liabilities		18,794			17,218			19,374			12,763			23,901
Total liabilities		1,224,893			1,257,364			1,287,107			1,284,094			1,336,914
Stockholders’ equity		306,912			309,587			326,015			325,883			334,716
Total liabilities and stockholders’ equity	$	1,531,805		$	1,566,951		$	1,613,122		$	1,609,977		$	1,671,630
CAPITAL RATIOS:
	2007						2006
	IIQ			IQ			IVQ			IIIQ			IIQ
BankFinancial Corporation:
Equity to total assets (end of period)		20.04	%		19.76	%		20.21	%		20.24	%		20.02	%
Tangible equity to tangible total assets (end of period)		18.37			18.10			18.58			18.59			18.39
BankFinancial FSB:
Risk-based total capital ratio		20.26			20.64			20.09			19.91			19.70
Risk-based tier 1 capital ratio		19.43			19.74			19.26			19.05			18.88
Tier 1 leverage ratio		15.94			15.51			15.05			14.95			14.33
Stock repurchases – $ (000’s)	$	3,780		$	19,261		$	3,960		$	13,330			—
Stock repurchases – shares		232,643			1,131,974			226,600			750,700			—
COMMON STOCK AND DIVIDENDS:
	2007						2006
	IIQ			IQ			IVQ			IIIQ			IIQ
Stock Prices:
Close	$	15.45		$	16.27		$	17.81		$	17.49		$	17.30
High		16.75			17.98			18.50			18.11			17.30
Low		15.45			16.10			17.23			16.31			15.15
Cash dividends paid	$	0.07		$	0.07		$	0.06		$	0.06		$	0.06
DEPOSITS:
	2007						2006
	IIQ			IQ			IVQ			IIIQ			IIQ
Non-interest-bearing demand	$	126,304		$	122,422		$	134,097		$	130,491		$	136,046
Interest-bearing NOW		282,300			277,683			274,391			251,938			244,173
Money market		262,265			258,400			260,796			250,767			249,133
Savings		107,030			114,793			114,851			118,898			129,482
Certificates of deposit—Retail		317,946			321,444			323,957			330,794			333,389
Certificates of deposit—Wholesale		9,392			11,104			21,493			23,361			45,441
Total certificates of deposit		327,338			332,548			345,450			354,155			378,830
Total deposits	$	1,105,237		$	1,105,846		$	1,129,585		$	1,106,249		$	1,137,664

Page 3

BANKFINANCIAL CORPORATION

SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA

Latest Five Quarters

(Dollars in thousands; except per share) – (Unaudited)

	2007						2006
	IIQ			IQ			IVQ			IIIQ			IIQ
LOANS:
One- to four-family residential real estate	$	381,447		$	391,759		$	397,545		$	409,288		$	402,097
Multi-family mortgage loans		291,963			299,566			297,131			292,100			291,005
Nonresidential real estate		321,943			314,275			320,729			307,619			303,901
Construction and land loans		68,024			68,742			85,222			83,526			78,900
Commercial loans		84,410			90,103			89,346			84,947			76,070
Commercial leases		134,217			134,327			139,164			135,019			127,971
Consumer loans		4,574			3,361			3,869			3,989			4,019
Other loans (including municipal)		4,544			4,752			4,959			4,959			4,959
Total loans		1,291,122			1,306,885			1,337,965			1,321,447			1,288,922
Loans in process		(87	)		154			148			113			934
Net deferred loan origination costs		2,266			2,402			2,424			2,478			2,478
Allowance for loan losses		(10,779	)		(11,122	)		(10,622	)		(11,924	)		(11,969	)
Loans, net	$	1,282,522		$	1,298,319		$	1,329,915		$	1,312,114		$	1,280,365
CREDIT QUALITY RATIOS:
	2007						2006
	IIQ			IQ			IVQ			IIIQ			IIQ
Nonperforming Loans and Assets:
Nonperforming loans	$	9,720		$	8,759		$	9,226		$	8,469		$	6,440
Real estate owned		—			—			—			—			30
Nonperforming assets	$	9,720		$	8,759		$	9,226		$	8,469		$	6,470
Asset Quality Ratios:
Nonperforming assets to total assets		0.63	%		0.56	%		0.57	%		0.53	%		0.39	%
Nonperforming loans to total loans		0.75			0.67			0.69			0.64			0.50
Allowance for loan losses to nonperforming loans		110.90			126.98			115.13			140.80			185.85
Allowance for loan losses to total loans		0.84			0.85			0.79			0.90			0.93
Net charge-off ratio (1)		0.00			0.02			0.23			0.03			0.03
ALLOWANCE FOR LOAN LOSSES:
	2007						2006
	IIQ			IQ			IVQ			IIIQ			IIQ
Beginning balance	$	11,122		$	10,622		$	11,924		$	11,969		$	11,708
Allowance of acquired bank		—			—			—			—			212
Provision (credit) for loan losses		(354	)		581			(537	)		49			156
Loans charged off		(3	)		(97	)		(767	)		(96	)		(107	)
Recoveries		14			16			2			2			—
Ending balance	$	10,779		$	11,122		$	10,622		$	11,924		$	11,969

(1) Annualized

Page 4

BANKFINANCIAL CORPORATION

SELECTED QUARTERLY FINANCIAL AND STATISTICAL DATA

Latest Five Quarters

(Dollars in thousands; except per share) – (Unaudited)

SELECTED AVERAGE BALANCES:

	2007						2006
	IIQ			IQ			IVQ			IIIQ			IIQ
Average total assets	$	1,543,985		$	1,584,765		$	1,611,689		$	1,644,304		$	1,689,670
Average earning assets		1,432,238			1,481,465			1,486,033			1,544,356			1,588,209
Average total loans		1,297,583			1,323,345			1,328,482			1,320,016			1,288,053
Average investment securities		98,791			112,206			110,033			193,081			268,584
Average FHLB stock		15,598			15,598			18,299			18,911			24,717
Average other earning assets		20,266			30,316			29,219			12,348			6,855
Average interest-bearing deposits		978,601			981,956			980,771			982,859			1,006,806
Average total borrowings		112,209			137,715			149,001			170,804			190,935
Average interest-bearing liabilities		1,090,810			1,119,671			1,129,772			1,153,663			1,197,741
Average total stockholders’ equity		310,219			325,806			326,010			335,015			339,122
SELECTED YIELDS AND COST OF FUNDS (1):
	2007						2006
	IIQ			IQ			IVQ			IIIQ			IIQ
Average earning assets		6.47	%		6.51	%		6.37	%		6.23	%		5.98	%
Average total loans		6.60			6.66			6.52			6.50			6.38
Average investment securities		5.66			5.51			5.43			4.62			4.38
Average FHLB stock		2.75			3.72			3.21			3.99			3.15
Average other earning assets		5.30			5.15			5.28			5.75			5.03
Average interest-bearing deposits		3.48			3.42			3.33			3.22			2.97
Average total borrowings		4.51			4.38			4.29			4.19			4.01
Average interest-bearing liabilities		3.59			3.54			3.46			3.37			3.14
Interest rate spread		2.88			2.98			2.91			2.86			2.84
Net interest margin		3.74			3.84			3.74			3.71			3.62
EARNINGS PER SHARE COMPUTATIONS:
	2007						2006
	IIQ			IQ			IVQ			IIIQ			IIQ
Net income	$	2,338		$	1,651		$	1,207		$	2,795		$	2,904
Average common shares outstanding		23,124,955			23,924,011			24,384,369			24,556,236			24,466,250
Less: Unearned ESOP shares		(1,777,881	)		(1,802,198	)		(1,826,679	)		(1,851,346	)		(1,871,668	)
Less: Unvested restricted stock		(618,600	)		(637,882	)		(730,208	)		(210,082	)		—
Weighted average common shares outstanding		20,728,474			21,483,931			21,827,482			22,494,808			22,594,582
Plus: Dilutive common shares equivalents		26,049			53,611			12,994			12,294			—
Weighted average dilutive shares outstanding		20,754,523			21,537,542			21,840,476			22,507,102			22,594,582
Number of antidilutive stock options excluded from the diluted earnings per share calculation		1,557,500			1,301,000			1,301,000			1,140,000			N.A.
Weighted average exercise price of anti-dilutive option shares	$	17.36		$	17.63		$	17.63		$	17.62			N.A.
Earnings per basic share	$	0.11		$	0.08		$	0.06		$	0.12		$	0.13
Earnings per diluted share	$	0.11		$	0.08		$	0.06		$	0.12		$	0.13
N.A. = Not Applicable

(1) Annualized

Page 5

BANKFINANCIAL CORPORATION

NON-GAAP FINANCIAL MEASURES

The Company utilizes a number of different financial measures, both GAAP and non-GAAP, in making operating, budgeting and planning decisions for future periods. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles in the United States of America, or GAAP. The Company believes that the use of the non-GAAP financial measures described below provides the Board of Directors and management, and may provide some investors, with a more complete understanding the Company’s operating results and trends, and facilitate comparisons to historical and peer performance. The Company’s non-GAAP financial measures should be considered supplemental in nature and should not be considered in isolation, or as superior to or a substitute for, financial measures that are prepared in accordance with GAAP. In addition, the Company’s non-GAAP financial measures may differ from similar non-GAAP financial measures that are used by other companies, thus limiting their usefulness as a comparative tool.

Amortization of Intangibles Expense. The Company believes that the exclusion from its net income of expense for the amortization of the core deposit intangible assets resulting from its acquisition of Success Bancshares and University National Bank facilitates the comparison of the Company’s operating results to the Company’s historical performance and to the performance of other financial institutions with different acquisition histories. In addition, the level of amortization of core deposit intangible assets arising from an acquisition can vary significantly depending on the valuation methodology used and the interest rate environment that existed at the time of the acquisition.

Equity-based Compensation. The Company believes that the exclusion of equity-based compensation expense from its net income facilitates the comparison of the Company’s operating results to the Company’s historical performance, including the prior periods in which it operated as a mutual institution and had no stock outstanding. In addition, the Company believes that this non-GAAP measure facilitates the comparison of the Company’s performance to the performance of other financial institutions that have different or more seasoned equity-based compensation plans, including plans pursuant to which stock option awards vested prior to the effective date of SFAS No. 123R.

Core Return on Assets. The Company believes that adjusting the calculation of its return on assets to exclude the equity-based compensation expense and the amortization of intangibles expense described above furthers the purposes described above. Thus, the Company calculates core return on assets by dividing net income for a period, adjusted to exclude these expenses, by its average assets for the period.

Core Return on Equity. The Company believes that adjusting the calculation of its return on equity to exclude the equity-based compensation expense and the amortization of intangibles expenses described above furthers the purposes described above. Thus, the Company calculates core return on equity by dividing average stockholders’ equity for a period by net income, adjusted to exclude these expenses, for the period.

Core Dilutive Earnings per Share. The Company believes that adjusting the calculation of its dilutive earnings per share to exclude the equity-based compensation expense and the amortization of intangibles expenses described above furthers the purposes described above. Thus, the Company calculates core dilutive earnings per share by net income, adjusted to exclude these expenses, for the period by the weighted average dilutive common shares outstanding, for the period.

Core Noninterest Expense to Average Total Assets. The Company believes that adjusting the calculation of its noninterest expense to average total assets to exclude the equity-based compensation expense and the amortization of intangibles expenses described above furthers the purposes described above. Thus, the Company calculates noninterest expense to average total assets by dividing noninterest expense, adjusted to exclude these expenses, by average total assets for the period.

Core Efficiency Ratio. The Company believes that adjusting the calculation of its efficiency ratio to exclude the equity-based compensation expense and the amortization of intangibles expense described above furthers the purposes described above. Thus, the Company calculates core efficiency ratio by dividing noninterest expense, adjusted to exclude these expenses, by the sum of net interest income and noninterest income.

There are inherent limitations associated with the use of each of the above non-GAAP financial measures as an analytical tool. In particular, these non-GAAP financial measures are not based on a comprehensive set of accounting rules or principles and reflect the exclusion of items that are recurring and will be reflected in the Company’s financial results in the future. The Company has further highlighted these and the other limitations described above by providing a reconciliation of the GAAP amounts that have been excluded from these non-GAAP financial measures.

Page 6

BANKFINANCIAL CORPORATION

NON-GAAP FINANCIAL MEASURES

(Dollars in thousands; except per share) – (Unaudited)

FOR THE QUARTERS AND SIX MONTH PERIOD ENDED

June 30, 2007 AND 2006

	Three months ended June 30,						Six months ended June 30,
	2007			2006			2007			2006
Core Operating Income:
Net Income	$	2,338		$	2,904		$	3,989		$	6,044
Adjustments:
Equity-based compensation and benefits		1,294			456			2,555			841
Amortization of core deposit intangible		469			495			946			888
Tax effect on adjustments assuming 39.745% tax rate		(701	)		(378	)		(1,391	)		(687	)
Core Operating Income	$	3,400		$	3,477		$	6,099		$	7,086
Return on assets (ratio of net income to average total assets) (1)		0.61	%		0.69	%		0.51	%		0.73	%
Core return on assets (ratio of core operating income to average total assets) (1)		0.88	%		0.82	%		0.78	%		0.86	%
Return on equity (ratio of net income to average equity) (1)		3.01	%		3.43	%		2.51	%		3.63	%
Core return on equity (ratio of core operating income to average equity) (1)		4.38	%		4.10	%		3.84	%		4.26	%
Dilutive earnings per common share	$	0.11		$	0.13		$	0.19		$	0.27
Core dilutive earnings per common share	$	0.16		$	0.15		$	0.29		$	0.31
Core Noninterest Expenses:
Noninterest Expenses	$	12,666		$	12,457		$	25,788		$	24,085
Adjustments:
Equity-based compensation and benefits		(1,294	)		(456	)		(2,555	)		(841	)
Amortization of core deposit intangible		(469	)		(495	)		(946	)		(888	)
Core Noninterest Expenses	$	10,903		$	11,506		$	22,287		$	22,356
Noninterest expense to average total assets (1)		3.28	%		2.95	%		3.30	%		2.91	%
Core noninterest expense to average total assets (1)		2.82	%		2.72	%		2.85	%		2.70	%
Efficiency ratio (ratio of noninterest expense to net interest income plus noninterest income)		80.79	%		73.68	%		81.23	%		72.00	%
Core efficiency ratio (ratio of core noninterest expense to net interest income plus noninterest income)		69.54	%		68.05	%		70.20	%		66.83	%

(1) Annualized

Page 7

FOR THE LATEST FIVE QUARTERS

	2007						2006
	IIQ			IQ			IVQ			IIIQ			IIQ
Core Operating Income:
Net Income	$	2,338		$	1,651		$	1,207		$	2,795		$	2,904
Adjustments:
Equity-based compensation and benefits		1,294			1,261			3,542			996			456
Amortization of core deposit intangible		469			476			489			496			495
Tax effect on adjustments assuming 39.745% tax rate		(701	)		(690	)		(1,602	)		(593	)		(378	)
Core Operating Income	$	3,400		$	2,698		$	3,636		$	3,694		$	3,477
Return on assets (ratio of net income to average total assets) (1)		0.61	%		0.42	%		0.30	%		0.68	%		0.69	%
Core return on assets (ratio of core operating income to average total assets) (1)		0.88	%		0.68	%		0.90	%		0.90	%		0.82	%
Return on equity (ratio of net income to average equity) (1)		3.01	%		2.03	%		1.48	%		3.34	%		3.43	%
Core return on equity (ratio of core operating income to average equity) (1)		4.38	%		3.31	%		4.46	%		4.41	%		4.10	%
Dilutive earnings per common share	$	0.11		$	0.08		$	0.06		$	0.12		$	0.13
Core dilutive earnings per common share	$	0.16		$	0.13		$	0.17		$	0.16		$	0.15
Core Operating Expenses:
Noninterest Expenses	$	12,666		$	13,122		$	15,390		$	12,895		$	12,457
Adjustments:
Equity-based compensation and benefits		(1,294	)		(1,261	)		(3,542	)		(996	)		(456	)
Amortization of core deposit intangible		(469	)		(476	)		(489	)		(496	)		(495	)
Core Noninterest Expenses	$	10,903		$	11,385		$	11,359		$	11,403		$	11,506
Noninterest expense to average total assets (1)		3.28	%		3.31	%		3.82	%		3.14	%		2.95	%
Core noninterest expense to average total assets (1)		2.82	%		2.87	%		2.82	%		2.77	%		2.72	%
Efficiency ratio (ratio of noninterest expense to net interest income plus noninterest income)		80.79	%		81.66	%		93.01	%		75.37	%		73.68	%
Core efficiency ratio (ratio of core noninterest expense to net interest income plus noninterest income)		69.54	%		70.85	%		68.65	%		66.65	%		68.05	%

(1) Annualized

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