BankFinancial: Well-Positioned For A Rising Rate Environment

Ryan Sawyer
73 Followers

Summary

  • BFIN could see an expansion of net interest margin if interest rates were to rise.
  • BFIN has $500 million in dry powder for lending or investing.
  • BFIN is conservatively priced, boasting an expected earnings yield of 9%+ in a rising rate environment.

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Investment Thesis

BankFinancial Corporation (NASDAQ:BFIN) has an opportunity to increase its earnings as interest rates rise. In general, the majority of its loans and investment securities are currently at relatively short-term maturities and/or adjustable rates, while its

This article was written by

73 Followers
Ryan Sawyer has managed the equity portfolios of others since 2013. He is a Certified Public Accountant and a CFA Charterholder, and is the owner and portfolio manager of Sawyer Investment Management Company.Sawyer Investment Management Company specializes in the construction of equity portfolios, and is therefore an ideal resource for long-term investors. The firm goes through a rigorous process for selecting each and every holding in the portfolio. Rooted in the empirical research of academia, the portfolios are generally composed of stocks which exhibit value, momentum, and quality characteristics.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of BFIN either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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