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BankFinancial is like a smaller, Chicago-focused version of U.S. Bancorp (USB), offering traditional banking services.

BankFinancial is a community bank, operating similarly to a locally-owned alternative to regional players like PNC Bank.

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• Deposit Services: Provides a range of accounts including checking, savings, money market, and certificates of deposit for individuals and businesses to securely manage their funds.
• Commercial Real Estate Lending: Offers financing for the acquisition, development, construction, and refinancing of income-producing and owner-occupied commercial properties.
• Commercial & Industrial Lending: Provides loans to businesses for working capital, equipment financing, expansion, and other general corporate purposes.
• Residential Mortgage Lending: Facilitates home ownership through loans for the purchase or refinancing of 1-4 family residential properties.
• Treasury Management Services: Delivers solutions for businesses to efficiently manage their cash flow, payments, and financial operations.

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BankFinancial (BFIN) Major Customers

• Individual Consumers: This category includes individuals and families who utilize BankFinancial's retail banking services. These services typically encompass checking and savings accounts, certificates of deposit, residential mortgage loans, home equity lines of credit, auto loans, and various other personal banking and wealth management products.
• Small and Medium-Sized Businesses: BankFinancial serves local and regional businesses seeking commercial banking solutions. This includes business checking and savings accounts, business lines of credit, term loans for equipment or expansion, commercial real estate loans, and treasury management services designed to meet the financial needs of small to mid-sized enterprises.
• Commercial Real Estate Investors and Developers: A significant portion of BankFinancial's lending activities is directed towards this specialized segment. These customers include individuals and companies involved in the acquisition, development, and management of commercial properties, requiring specific financing solutions such as construction loans, acquisition loans, and permanent financing for income-producing properties.

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• Wipfli LLP
• Visa Inc. (V)
• Mastercard Incorporated (MA)

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F. Morgan Gasior, Chairman, President & Chief Executive Officer

Mr. Gasior has served as Chairman of the Board, Chief Executive Officer, and President of BankFinancial Corp. since its formation in 2004, and of BankFinancial, NA since 1989. He also held these positions with the company's predecessors, BankFinancial MHC and BankFinancial Corporation (a federal corporation), from 1999 to 2005. He has been employed by the Bank in various capacities since 1984, becoming Executive Vice President and Chief Operating Officer in 1988. Mr. Gasior served as a director and officer of Financial Assurance Services, a subsidiary of the Bank, from 1989 through 2003. He is licensed as an attorney in Illinois and Michigan but does not actively practice law.

Paul A. Cloutier, EVP, Treasurer & Chief Financial Officer

Mr. Cloutier serves as the Executive Vice President, Treasurer, and Chief Financial Officer at BankFinancial.

Gregg T. Adams, President, Marketing & Sales

Mr. Adams holds the position of President, Marketing & Sales at BankFinancial.

Ronald F. Tuite, Senior Vice President

Mr. Tuite is a Senior Vice President at BankFinancial. He possesses over 30 years of experience in the Wealth Management Industry, holds BS and MBA degrees from Elmhurst College, is a Certified Trust Financial Advisor, and is licensed in Health and Life Insurance in Illinois.

Daniel N. Wlodek, Vice President

Mr. Wlodek is a Vice President at BankFinancial. He has more than 30 years of experience in banking, asset management, and trust administration, holds a BS from Elmhurst College, and is a graduate of the American Bankers Association National Trust School.

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The key risks to BankFinancial (BFIN) include declining profitability, elevated valuation with concerns about dividend sustainability, and intense industry competition alongside interest rate sensitivity.

1. Declining Profitability and Earnings: BankFinancial has experienced a significant deterioration in its profitability, with net profit margins falling sharply from 14.9% to 4.3% in a year. The company's earnings have consistently declined over the past five years, averaging an 8.8% annual decrease. This multi-year contraction in earnings raises significant questions about its long-term growth prospects and overall financial health.
2. Elevated Valuation and Dividend Sustainability Concerns: BankFinancial's stock trades at a Price-To-Earnings (P/E) Ratio of 70.7x, which is considerably higher than the peer average of 12x and the US Banks industry average of 11x. This premium valuation, especially without visible profit growth, suggests heightened investment risk. Furthermore, the company's dividend payout ratio of 255% of its profits last year is considered unsustainably high given its shrinking earnings, potentially putting the future of its dividend at risk.
3. Industry Competition and Interest Rate Sensitivity: The banking sector in which BankFinancial operates is intensely competitive. Additionally, the company is exposed to risks associated with changes in interest rates, which can impact its revenue and earnings. For instance, BankFinancial experienced a substantial increase in interest expense due to higher rates paid on deposit accounts, which significantly affected its net interest income.

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The rapid emergence and expansion of digital-first financial service providers, including neobanks, online lenders, and fintech payment platforms. These entities leverage advanced technology to offer highly convenient, user-friendly, and often lower-cost services that directly compete with BankFinancial's traditional deposit, lending, and payment offerings. This digital disruption threatens to erode BankFinancial's customer base, particularly among tech-savvy demographics, and compress net interest margins as customers shift to more agile, digitally native alternatives, similar to how Netflix disrupted Blockbuster or Uber challenged traditional taxis.

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BankFinancial (symbol: BFIN) offers a range of financial products and services primarily within the United States. The addressable markets for their main products and services are sized as follows:

• Commercial Banking / Commercial Lending: The U.S. commercial banking market is estimated at USD 732.5 billion in 2025 and is projected to reach USD 915.45 billion by 2030, growing at a CAGR of 4.56%. Another source indicates the commercial banking market in the US is valued at $1.6 trillion in 2025. The global commercial lending market size was valued at USD 9.7 trillion in 2023 and is poised to grow to USD 23.06 trillion by 2032, with the US commercial lending market also poised for sustainable growth.
• Commercial Real Estate Lending: Total commercial real estate (CRE) mortgage borrowing and lending in the U.S. is estimated to have totaled $498 billion in 2024, a 16 percent increase from the previous year. The U.S. Real Estate Loan Market was valued at USD 3.5 trillion in 2024 and is projected to grow at a CAGR of 10.6%. Commercial and multifamily loan originations are expected to climb 16% to $583 billion in 2025. The U.S. CRE mortgage market consists of $4.5 trillion backed by income-producing properties and $470 billion of construction loans.
• Deposits (Commercial and Retail): The total amount of deposits held by all commercial banks in the U.S. was reported at 17,922.903 USD billion in February 2025. In April 2025, deposits for all commercial banks in the United States were 18,121.04570 billion U.S. dollars.
• Retail Banking: The U.S. retail banking market is valued at USD 0.87 trillion in 2025 and is forecasted to reach USD 1.08 trillion by 2030, reflecting a 4.22% CAGR during 2025-2030. Another estimate indicates the U.S. retail banking market size was valued at USD 1,105 billion in 2024 and is projected to reach USD 1,850 billion by 2032, growing at a CAGR of 6.7% during the forecast period 2026-2032. The retail banking market in the U.S. is also forecasted to grow by USD 92.1 billion during 2024-2029, accelerating at a CAGR of 4.2%.
• Wealth Management: The U.S. private banking market is valued at USD 59.54 billion in 2025 and is expected to reach USD 94.89 billion by 2030, growing at a CAGR of 9.77% during the forecast period.

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• Expansion of Commercial Banking in the Chicagoland Market: The acquisition by First Financial is strategically aimed at expanding its presence in the economically robust Chicagoland market. This will leverage BankFinancial's existing commercial banking operations and customer base to drive growth in commercial loans, leases, and related services within this key region.
• Growth from a Strong Core Deposit Franchise and Branch Network: BankFinancial brings a "strong core deposit franchise including 18 financial centers" in Cook, DuPage, Lake, and Will Counties, Illinois. These established branches are expected to contribute to deposit growth, providing a stable and lower-cost funding source for lending activities, thereby enhancing net interest income.
• Cross-selling a Broader Range of Products and Services: Following the integration into First Financial, the combined entity will have an expanded suite of financial products and services. This creates opportunities to cross-sell First Financial's offerings to BankFinancial's existing customer base, including individuals, families, and businesses who currently utilize BankFinancial's depository, wealth management, and trust services, as well as its commercial loans and leases.
• Enhanced Commercial Finance and Lending Capabilities: BankFinancial had been proactively expanding its commercial finance team and reaffirming its commitment to competitive lending solutions. Under the umbrella of First Financial, these efforts are anticipated to be strengthened with potentially greater resources, driving further revenue growth through an increase in commercial finance and lending activities.

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Share Repurchases

• BankFinancial has regularly extended and expanded its share repurchase program, with significant authorizations including an additional 400,000 shares in October 2020, bringing the total authorized to 6,210,755 shares.
• The program was extended in January 2023 and April 2023, and again in December 2023, which added 200,000 shares and set an expiration date of December 15, 2024.
• In October 2024, the share repurchase plan was extended until June 16, 2025. The company repurchased 266,716 common shares in 2023, representing 2.1% of shares outstanding, and 15,203 common shares for approximately $156,000 in the first quarter of 2024.

Share Issuance

• No significant share issuances for capital raising purposes by BankFinancial were identified within the last 3-5 years.

Inbound Investments

• On August 11, 2025, First Financial Bancorp announced an agreement to acquire BankFinancial in an all-stock transaction valued at approximately $142 million.
• Under the terms of the agreement, each outstanding share of BankFinancial common stock will be converted into the right to receive 0.48 of a share of First Financial common stock.
• The transaction is expected to close in the fourth quarter of 2025, subject to regulatory and BankFinancial shareholder approvals.

Outbound Investments

• No significant outbound strategic investments in other companies by BankFinancial were found over the last 3-5 years.

Capital Expenditures

• BankFinancial's forecasted capital expenditures were approximately $1.944 million in 2021, $2.335 million in 2022, $2.007 million in 2023, and $0.798 million in 2024.