BankFinancial Corporation, a Maryland corporation headquartered in Burr Ridge,
Illinois, became the owner of all of the issued and outstanding capital stock
of BankFinancial, F.S.B. (the “Bank”) on June 23, 2005, when we
consummated a plan of conversion and reorganization that the Bank and its predecessor
holding companies, BankFinancial MHC, Inc. and BankFinancial Corporation, a
federal corporation, adopted on August 25, 2004. BankFinancial Corporation,
the Maryland corporation, was organized in 2004 to facilitate the mutual-to-stock
conversion and to become the holding company for the Bank upon its completion.
The Bank is a full-service, community-oriented federal savings bank principally
engaged in the business of commercial, family and personal banking. The Bank
offers our customers a broad range of loan, deposit, and other financial products
and services through 19 full-service Illinois based banking offices located
in Cook, DuPage, Lake and Will Counties, and through our Internet Branch, www.bankfinancial.com.
The Bank’s primary business is making loans and accepting deposits. The
Bank also offers our customers a variety of financial products and services
that are related or ancillary to loans and deposits, including cash management,
funds transfers, bill payment and other online and mobile banking transactions,
automated teller machines, safe deposit boxes, trust services, wealth management,
and general insurance agency services.
The Bank’s primary lending area consists of the counties where our branch
offices are located, and contiguous counties in the State of Illinois. We derive
the most significant portion of our revenues from these geographic areas. However,
we also engage in multi-family lending activities in selected Metropolitan Statistical
Areas outside our primary lending area and engage in healthcare lending and
commercial leasing activities on a nationwide basis.
We originate deposits predominantly from the areas where our branch offices
are located. We rely on our favorable locations, customer service, competitive
pricing, our Internet Branch and related deposit services such as cash management
to attract and retain these deposits. While we accept certificates of deposit
in excess of the Federal Deposit Insurance Corporation (“FDIC”)
deposit insurance limits, we generally do not solicit such deposits because
they are more difficult to retain than core deposits and at times are more costly
than wholesale deposits.
Our deposit accounts consist principally of savings accounts, NOW accounts,
checking accounts, money market accounts, certificates of deposit, and IRAs
and other retirement accounts. We provide commercial checking accounts and related
services such as cash management. We also provide low-cost checking account
services. We rely on our favorable locations, customer service, competitive
pricing, our Internet Branch and related deposit services such as cash management
to attract and retain deposit accounts.
The Bank provides trust and financial planning services through our Trust Department.
The Bank’s Wealth Management Group provides investment, financial planning
and other wealth management services through arrangements with a third-party
broker-dealer. The Bank’s wholly-owned subsidiary,
