BankFinancial Corp (BFIN) 2011 Q1 法說會逐字稿

Good day, ladies and gentlemen, and welcome to the first-quarter 2011 BankFinancial Corporation earnings conference call. My name is Marissa, and I'll be your operator for today. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. (Operator Instructions). As a reminder, this conference is being recorded for replay purposes.

I would now like to turn this conference over to your host for today's call, Mr. Morgan Gasior, the Chairman and CEO. Please proceed.

Good morning and welcome to our first quarter of 2011 investor conference call. First, we will start with our forward-looking statement, read by accounts payable specialist Donna Washington.

The remarks made at this conference may include forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. We intend all forward-looking statements to be covered by the safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995 and are including this statement for purposes of invoking these safe harbor provisions.

Forward-looking statements involve significant risks and uncertainties and are based on assumptions that may or may not occur. They are often identifiable by use of the words believe, expect, intend, anticipate, estimate, project, plan or similar expressions.

Our ability to predict results or the actual effect of our plans and strategies is inherently uncertain, and actual results may differ significantly from those predicted.

For further details on the risks and uncertainties that could impact our financial condition and results of operation, please consult the forward-looking statement declarations and the risk factors we have included in our report to the SEC. These risks and uncertainties should be considered in evaluating forward-looking statements. We do not undertake any obligation to update any forward-looking statement in the future.

And now I will turn the call over to Chairman, CEO, F. Morgan Gasior.

Thank you. Well, all filings are complete, and we are prepared to answer any questions. So, please proceed with questions. Any questions for us today? And we will ask Marissa to prompt for any questions that may be out there.

(Operator Instructions). Jon Burke, Amica Insurance.

Can you talk about I guess the acquisition environment and how you're feeling about that now? You made some generally positive comments last call.

Sure, and good morning. We remain relatively optimistic about them. We continue to see opportunities presented to us. And at any given time, we are in the process of evaluating several of them.

More continue to arrive almost on a weekly basis. Some can be worked out, some cannot. And interestingly enough, some can't be worked out even for administrative reasons, like data conversions. Lenders are so busy doing FDIC conversions and other scheduled projects that if there's timelines involved, you may not be able to get the deal done solely for administrative reasons.

But, generally speaking, we continue to see a flow of opportunities. Some are on a whole-bank basis; some are on a branch-level basis. And we at this juncture can't promise that we will deliver any particular project, but we have plenty to work on.

Do you still have the same -- I know you recently reauthorized the repurchase. Do you still have the same feelings toward the repurchase, that you will probably stay out of the market?

I don't think anything has changed from our last discussion on the matter.

Okay. How do you feel about OREO sales? I know in the Q, you mentioned investor interest is -- are you still expecting as we get through the balance of 2011 to start to move them at an accelerating rate?

I think so. You know, it's always a function of what bids you're getting and how many bids you're getting. And the better news recently is we are getting more bids on given inventory. And I think that's the first sign of an accelerated disposition.

As that continues, especially for properties that are performing in our improved portfolio, we will start to see some stuff move off the inventory.

We will still get some in inventory through the remainder of the year. We do projections a quarter or two ahead of time. And wherever possible, even if we don't have title to the property yet, we've made arrangements for the property to be listed as far in advance as possible. So, again, we are getting a jump on getting more property on the market and getting it moved.

Has there been any change as far as I guess the legal slowdown in moving properties?

You know, not appreciably so, but I think we're just at a stage in some of the litigation where the borrower really has exhausted all of their possible objections and defenses, and even working through some of these mediations. So I think we are going to see a greater inventory simply because we fought through the all possible battles that there are to fight, and we will finally get our hands on the property and be able to get them on the market.

But there's been nothing structural in terms of what, say, Cook County -- which is our largest market -- has done in terms of making the process smoother or faster. The same barriers exist as they did before; we are just farther along in the process than we were. And therefore, we will start taking title a little more rapidly than we have been.

Okay. In the annual, you had mentioned the $4.4 million out-of-market multifamily property expected to be resolved in 2011 in excess of your book value, net book value on that. Is that still the case on that loan?

Still moving forward on that. Nothing has changed.

Okay, great. All right, those are all my questions.

(Operator Instructions). Sir, I show no more questions at this time.

Any other questions?

No, sir, no further questions.

Very good. Well, going once -- going twice -- all right. Well, in that case, we thank everyone for their attendance and their interest in BankFinancial, and we look forward to speaking to you for our second-quarter 2011 investor conference call.

Ladies and gentlemen, that concludes today's presentation. Thank you for your participation; you may now disconnect. Have a great day.