CF BANKSHARES INC., PARENT OF CFBANK NA, REPORTS RESULTS FOR THE 1ST QUARTER 2025
The bank's performance showed notable improvements with Net Interest Margin (NIM) increasing by 7bps quarter-over-quarter and 28bps year-over-year. Noninterest-bearing deposits grew by $18 million (7%) during Q1. The company completed strategic sales of residential mortgage portfolios worth $18.1 million, redirecting funds to higher-yielding commercial banking relationships.
Notable developments include appointing Matt Tuohey as Northeast Ohio Market President, declaring a $0.07 per share dividend, and securing a new $10 million revolving credit line. The bank's commercial banking group achieved over $50 million in net loan growth despite significant loan payoffs.
Le prestazioni della banca hanno mostrato miglioramenti significativi con un Margine di Interesse Netto (NIM) in crescita di 7 punti base trimestre su trimestre e 28 punti base anno su anno. I depositi senza interessi sono aumentati di 18 milioni di dollari (7%) durante il primo trimestre. L'azienda ha completato la vendita strategica di portafogli di mutui residenziali per un valore di 18,1 milioni di dollari, reinvestendo i fondi in rapporti bancari commerciali a rendimento più elevato.
Tra gli sviluppi rilevanti si segnalano la nomina di Matt Tuohey a Presidente del Mercato del Nordest dell'Ohio, la dichiarazione di un dividendo di 0,07 dollari per azione e l'ottenimento di una nuova linea di credito revolving da 10 milioni di dollari. Il gruppo di banking commerciale della banca ha raggiunto una crescita netta dei prestiti superiore a 50 milioni di dollari nonostante significativi rimborsi di prestiti.
El desempeño del banco mostró mejoras notables con un Margen de Interés Neto (NIM) que aumentó 7 puntos básicos trimestre a trimestre y 28 puntos básicos año tras año. Los depósitos sin intereses crecieron en 18 millones de dólares (7%) durante el primer trimestre. La compañía completó ventas estratégicas de carteras hipotecarias residenciales por valor de 18,1 millones de dólares, redirigiendo los fondos hacia relaciones bancarias comerciales de mayor rendimiento.
Entre los desarrollos destacados se encuentran el nombramiento de Matt Tuohey como Presidente del Mercado del Noreste de Ohio, la declaración de un dividendo de 0,07 dólares por acción y la obtención de una nueva línea de crédito revolvente de 10 millones de dólares. El grupo de banca comercial del banco logró un crecimiento neto en préstamos de más de 50 millones de dólares a pesar de importantes pagos de préstamos.
은행의 실적은 순이자마진(NIM)이 분기별로 7bp, 연간으로 28bp 상승하는 등 눈에 띄는 개선을 보였습니다. 무이자 예금은 1분기 동안 1800만 달러(7%) 증가했습니다. 회사는 1810만 달러 상당의 주택담보대출 포트폴리오를 전략적으로 매각하여 자금을 수익률이 높은 상업용 은행 관계로 전환했습니다.
주요 발전 사항으로는 매트 투오헤이가 오하이오 북동부 시장 사장으로 임명되었으며, 주당 0.07달러 배당금을 선언하고, 새로운 1000만 달러 회전 신용 한도를 확보한 점이 있습니다. 은행의 상업 은행 그룹은 상당한 대출 상환에도 불구하고 5000만 달러 이상의 순대출 성장을 달성했습니다.
La performance de la banque a montré des améliorations notables avec une marge d'intérêt nette (NIM) en hausse de 7 points de base d'un trimestre à l'autre et de 28 points de base d'une année sur l'autre. Les dépôts sans intérêt ont augmenté de 18 millions de dollars (7%) au cours du premier trimestre. La société a finalisé des ventes stratégiques de portefeuilles hypothécaires résidentiels d'une valeur de 18,1 millions de dollars, réorientant les fonds vers des relations bancaires commerciales à rendement plus élevé.
Parmi les développements notables figurent la nomination de Matt Tuohey en tant que président du marché du nord-est de l'Ohio, la déclaration d'un dividende de 0,07 dollar par action et l'obtention d'une nouvelle ligne de crédit renouvelable de 10 millions de dollars. Le groupe bancaire commercial de la banque a réalisé une croissance nette des prêts de plus de 50 millions de dollars malgré des remboursements importants de prêts.
Die Leistung der Bank zeigte deutliche Verbesserungen mit einer Steigerung der Nettozinsmarge (NIM) um 7 Basispunkte im Quartalsvergleich und 28 Basispunkte im Jahresvergleich. Die nicht verzinslichen Einlagen wuchsen im ersten Quartal um 18 Millionen US-Dollar (7%). Das Unternehmen schloss strategische Verkäufe von Wohnhypothekenportfolios im Wert von 18,1 Millionen US-Dollar ab und lenkte die Mittel in ertragreichere Geschäftskundenbeziehungen um.
Zu den bemerkenswerten Entwicklungen zählen die Ernennung von Matt Tuohey zum Market President für Nordost-Ohio, die Ausschüttung einer Dividende von 0,07 US-Dollar pro Aktie und die Sicherung einer neuen revolvierenden Kreditlinie in Höhe von 10 Millionen US-Dollar. Die Geschäftskundengruppe der Bank erzielte trotz erheblicher Kreditrückzahlungen ein Netto-Kreditwachstum von über 50 Millionen US-Dollar.
- Net income increased 44% year-over-year to $4.4 million in Q1 2025
- Noninterest-bearing deposits grew by $18 million (7%) in Q1
- Net Interest Margin (NIM) expanded for fourth consecutive quarter
- Secured new $10 million revolving credit line for additional Tier 1 capital
- Commercial Banking group achieved over $50 million in net loan growth
- Strong asset quality with minimal net charge-offs of $23,000
- Noninterest expense increased 10.7% year-over-year to $8.0 million
- Noninterest income decreased 16.6% quarter-over-quarter to $1.2 million
- Elevated payroll tax expense impacted Q1 results
- 31.1% of deposit balances exceed FDIC insurance limit, up from 29.8% in previous quarter
Insights
CF Bankshares delivered solid Q1 2025 results with 44% YoY earnings growth, expanding margins, and successful strategic execution in commercial banking.
CF Bankshares reported Q1 2025 net income of $4.4 million ($0.68 per diluted share), representing a 44% increase over Q1 2024, while remaining flat compared to Q4 2024. This performance was achieved despite including a $600,000 provision expense, demonstrating the bank's improved core earnings capacity.
The bank's net interest margin (NIM) expanded for the fourth consecutive quarter, increasing 7 basis points sequentially and 28 basis points year-over-year to reach 2.64%. This margin expansion is particularly noteworthy in the current banking environment and reflects successful balance sheet management strategies.
A standout achievement was the 7% growth in noninterest-bearing deposits during the quarter, adding $18 million to these zero-cost funding sources. This deposit growth helped support the bank's overall funding base, with total deposits increasing 1.6% to $1.78 billion.
The bank is effectively executing its strategic shift toward higher-yielding commercial relationships. By selling $18.1 million in residential mortgage loans and redeploying those funds into commercial relationships, they're optimizing their asset mix. Their commercial banking group generated over $50 million in net loan growth during the quarter despite significant payoffs from completed real estate development projects.
Asset quality metrics remained stable with nonaccrual loans at 0.82% of total loans and the allowance for credit losses at 1.01% of total loans. The quarterly provision expense of $582,000 was significantly lower than both the previous quarter ($1.4 million) and Q1 2024 ($1.2 million).
Profitability metrics showed ROE at 10.37% and ROA at 0.86% for the quarter. While PPNR decreased slightly from $6.5 million in Q4 2024 to $6.2 million in Q1 2025, this was impacted by typical first-quarter elevated payroll tax expenses.
The bank's recruitment of experienced commercial bankers and their new $10 million revolving credit line should provide additional support for their commercial banking growth strategy going forward.
First Quarter 2025 Highlights
- Net income for Q1 2025 was
$4.4 million $0.68 $600 k44% increase in net income over Q1 2024. Pre-provision, pre-tax net revenue (PPNR) for Q1 2025 was$6.2 million - Book value per share increased to
$25.86 - Return on Average Equity (ROE) was
10.37% for the first quarter, while Return on Average Assets (ROA) was0.86% . Q1 results included elevated payroll tax expense, which is typical for the first quarter of the year. - Net Interest Margin (NIM) increased 7bps when compared to the prior quarter and increased 28bps when compared to the first quarter of 2024. This represents the fourth consecutive quarter in which we have achieved NIM expansion.
- Noninterest bearing (NIB) deposit balances grew by
$18 million 7% during the first quarter of 2025. - During Q1, we completed the sale of two portfolios of residential mortgage loans totaling
$18.1 million
Recent Developments
- In April 2025, Matt Tuohey joined CFBank as Market President for the
Northeast Ohio region. Matt brings over 30 years of experience in commercial banking and executive leadership within theNortheast Ohio market. His strong connections will be valuable to building and expanding our presence in the market. - On April 2, 2025, the Company's Board of Directors declared a cash dividend of
$0.07 $7.00 - On April 30, 2025, the Company entered into a new
$10 million $35 million $10 million
CEO and Board Chair Commentary
Timothy T. O'Dell, President and CEO, commented:
Q1 Performance Sets Base to Build Upon
"Q1 Net Income of
We expect additional opportunities to reduce our Cost Of Funds and Deposit costs moving forward, with expected Fed rate reductions providing further impetus.
Leaning Into Growing the Commercial Bank Franchise
Our Commercial Banking group produced over
A key element of our business strategy, cited previously, of reducing lower rate Residential Mortgage portfolio loans to help with funding strengthening Commercial lending growth, produced the intended strategic results during Q1.
A more normalized upward sloping Interest rate Yield curve is anticipated to benefit Margins and Lending as we move forward. Our CF Team has done a nice job of implementing interest rate floors into some floating rate loans which may also help to sustain or support Margins.
Adding Top Talent Sets the Stage for Quality Growth
I am highly enthused by the caliber and interest level of experienced Commercial Bankers interested in joining CFBank mostly from Regional Banks. We believe through our conversations with them that they are attracted to our Entrepreneurial business approach along with lack of bureaucratic red tape. This talent influx we believe bodes well for future growth and expansion, along with our business objectives of expanding our Commercial Banking franchise, through increasing market share and added scale.
The previous as well as current successes with recruiting proven Revenue generating Commercial Banker Talent, is expanding appreciably our Commercial Banking Teams & presence in all 5 of the Regional Metro Markets which we serve.
Our Bests are Yet Ahead!"
Robert E. Hoeweler, Chairman of the Board, added: "Our CFBank Leadership and Team continues to demonstrate the ability to compete successfully and win vs. Regional Bank competitors."
Overview of Results
Net income for the three months ended March 31, 2025 totaled
Net Interest Income and Net Interest Margin
Net interest income totaled
The increase in net interest income compared to the prior quarter was primarily due to a
The increase in net interest income compared to the first quarter of 2024 was primarily due to a
Noninterest Income
Noninterest income for the quarter ended March 31, 2025 totaled
Noninterest income for the quarter ended March 31, 2025 increased
The following table represents the notional amount of loans sold during the three months ended March 31, 2025, December 31, 2024, and March 31, 2024 (in thousands).
Three Months ended | ||||||||||||
March 31, | December 31, | March 31, | ||||||||||
Notional amount of loans sold | $ | 27,277 | $ | 15,670 | $ | 9,037 | ||||||
Noninterest Expense
Noninterest expense for the quarter ended March 31, 2025 totaled
Noninterest expense for the quarter ended March 31, 2025 increased
Income Tax Expense
Income tax expense was
Loans and Loans Held For Sale
Net loans and leases totaled
The following table presents the recorded investment in loans and leases for certain non-owner-occupied loan types (in thousands).
March 31, 2025 | December 31, 2024 | |||||||
Construction – 1-4 family* | $ | 29,430 | $ | 26,786 | ||||
Construction – Multi-family* | 155,983 | 144,879 | ||||||
Construction – Non-residential* | 23,646 | 29,582 | ||||||
Hotel/Motel | 11,926 | 12,001 | ||||||
Industrial / Warehouse | 74,068 | 58,480 | ||||||
Land/Land Development | 33,195 | 25,123 | ||||||
Medical/Healthcare/Senior Housing | 2,184 | 2,333 | ||||||
Multi-family | 211,937 | 199,269 | ||||||
Office | 41,109 | 42,412 | ||||||
Retail | 71,948 | 62,652 | ||||||
Other | 7,603 | 8,533 | ||||||
* CFBank possesses a core competency and deep expertise in Construction Lending. The construction lending business sector has produced many full banking relationships with proven developers with long successful track records.
Asset Quality
Nonaccrual loans were
Loans 30 days or more past due totaled
The allowance for credit losses on loans and leases totaled
There was
Deposits
Deposits totaled
At March 31, 2025, approximately
Borrowings
FHLB advances and other debt totaled
Capital
Stockholders' equity totaled
USE OF NON-GAAP FINANCIAL MEASURES
This earnings release contains financial information and performance measures determined by methods other than in accordance with accounting principles generally accepted in
About CF Bankshares Inc. and CFBank
CF Bankshares Inc. (the "Company") is a holding company that owns
CFBank focuses on serving the financial needs of closely held businesses and entrepreneurs, by providing a comprehensive Commercial, Retail, and Mortgage Lending services presence. In all regional markets, CFBank provides commercial loans and equipment leases, commercial and residential real estate loans and treasury management depository services, residential mortgage lending, and full-service commercial and retail banking services and products. CFBank is differentiated by our penchant for individualized service coupled with direct customer access to decision-makers, and ease of doing business. CFBank matches the sophistication of much larger banks, without the bureaucracy.
Additional information about the Company and CFBank is available at www.CF.Bank
FORWARD LOOKING STATEMENTS
This press release and other materials we have filed or may file with the Securities and Exchange Commission ("SEC") contain or may contain forward-looking statements within the meaning of the safe harbor provisions of the
Forward-looking statements are not guarantees of performance or results. A forward-looking statement may include a statement of the assumptions or bases underlying the forward-looking statement. We believe that we have chosen these assumptions or bases in good faith and that they are reasonable. We caution you, however, that assumptions or bases almost always vary from actual results, and the differences between assumptions or bases and actual results can be material. The forward-looking statements included in this press release speak only as of the date hereof. We undertake no obligation to publicly release revisions to any forward-looking statements to reflect events or circumstances after the date of such statements, except to the extent required by law.
Consolidated Statements of Income ($ in thousands, except share data) | ||||||||||||
(unaudited) | Three months ended | |||||||||||
March 31, | ||||||||||||
2025 | 2024 | % change | ||||||||||
Total interest income | $ | 29,200 | $ | 29,086 | 0 | % | ||||||
Total interest expense | 16,291 | 17,802 | -8 | % | ||||||||
Net interest income | 12,909 | 11,284 | 14 | % | ||||||||
Provision for credit losses | ||||||||||||
Provision for credit losses-loans | 352 | 1,317 | -73 | % | ||||||||
Provision for credit losses-unfunded commitments | 230 | (80) | -388 | % | ||||||||
582 | 1,237 | -53 | % | |||||||||
Net interest income after provision for credit losses | 12,327 | 10,047 | 23 | % | ||||||||
Noninterest income | ||||||||||||
Service charges on deposit accounts | 667 | 559 | 19 | % | ||||||||
Net gain on sales of residential mortgage loans | 114 | 90 | 27 | % | ||||||||
Net gain (loss) on sales of commercial loans | (18) | 167 | n/m | |||||||||
Net loss on sale of equity security | (103) | - | n/m | |||||||||
Other | 546 | 89 | 513 | % | ||||||||
Noninterest income | 1,206 | 905 | 33 | % | ||||||||
Noninterest expense | ||||||||||||
Salaries and employee benefits | 4,183 | 3,508 | 19 | % | ||||||||
Occupancy and equipment | 434 | 434 | 0 | % | ||||||||
Data processing | 674 | 615 | 10 | % | ||||||||
Franchise and other taxes | 303 | 286 | 6 | % | ||||||||
Professional fees | 787 | 663 | 19 | % | ||||||||
Director fees | 177 | 125 | 42 | % | ||||||||
Postage, printing, and supplies | 49 | 44 | 11 | % | ||||||||
Advertising and marketing | 44 | 14 | 214 | % | ||||||||
Telephone | 55 | 51 | 8 | % | ||||||||
Loan expenses | 325 | 447 | -27 | % | ||||||||
Foreclosed assets, net | 1 | - | n/m | |||||||||
Depreciation | 118 | 130 | -9 | % | ||||||||
FDIC premiums | 546 | 600 | -9 | % | ||||||||
Regulatory assessment | 65 | 65 | 0 | % | ||||||||
Other insurance | 46 | 56 | -18 | % | ||||||||
Other | 147 | 149 | -1 | % | ||||||||
Noninterest expense | 7,954 | 7,187 | 11 | % | ||||||||
Income before income taxes | 5,579 | 3,765 | 48 | % | ||||||||
Income tax expense | 1,149 | 695 | 65 | % | ||||||||
Net income | 4,430 | 3,070 | 44 | % | ||||||||
Earnings allocated to participating securities (Series D preferred stock) | (136) | (57) | n/m | |||||||||
Net Income attributable to common stockholders | $ | 4,294 | $ | 3,013 | 43 | % | ||||||
Share Data | ||||||||||||
Basic earnings per common share | $ | 0.68 | $ | 0.48 | ||||||||
Diluted earnings per common share | $ | 0.68 | $ | 0.47 | ||||||||
Average common shares outstanding - basic | 6,285,649 | 6,329,898 | ||||||||||
Average common shares outstanding - diluted | 6,285,649 | 6,357,298 | ||||||||||
n/m - not meaningful | ||||||||||||
Consolidated Statements of Financial Condition | ||||||||||||||||||||
($ in thousands) | Mar 31, | Dec 31, | Sept 30, | Jun 30, | Mar 31, | |||||||||||||||
(unaudited) | 2025 | 2024 | 2024 | 2024 | 2024 | |||||||||||||||
Assets | ||||||||||||||||||||
Cash and cash equivalents | $ | 240,986 | $ | 235,272 | $ | 233,520 | $ | 241,775 | $ | 236,892 | ||||||||||
Interest-bearing deposits in other financial institutions | 100 | 100 | 100 | 100 | 100 | |||||||||||||||
Securities available for sale | 8,793 | 8,683 | 8,690 | 8,323 | 7,597 | |||||||||||||||
Equity securities | - | 5,000 | 5,000 | 5,000 | 5,000 | |||||||||||||||
Loans held for sale | 3,505 | 2,623 | 5,240 | 3,187 | 2,241 | |||||||||||||||
Loans and leases | 1,767,942 | 1,739,493 | 1,733,855 | 1,706,980 | 1,713,929 | |||||||||||||||
Less allowance for credit losses on loans and leases | (17,803) | (17,474) | (16,780) | (19,285) | (18,198) | |||||||||||||||
Loans and leases, net | 1,750,139 | 1,722,019 | 1,717,075 | 1,687,695 | 1,695,731 | |||||||||||||||
FHLB and FRB stock | 8,022 | 8,918 | 8,908 | 9,830 | 8,491 | |||||||||||||||
Foreclosed assets, net | 524 | - | - | - | - | |||||||||||||||
Premises and equipment, net | 3,472 | 3,536 | 3,480 | 3,571 | 3,685 | |||||||||||||||
Operating lease right of use assets | 5,925 | 6,087 | 6,259 | 4,858 | 5,041 | |||||||||||||||
Bank owned life insurance | 27,341 | 27,116 | 26,899 | 26,683 | 26,470 | |||||||||||||||
Accrued interest receivable and other assets | 45,874 | 46,169 | 51,323 | 49,612 | 48,225 | |||||||||||||||
Total assets | $ | 2,094,681 | $ | 2,065,523 | $ | 2,066,494 | $ | 2,040,634 | $ | 2,039,473 | ||||||||||
Liabilities and Stockholders' Equity | ||||||||||||||||||||
Deposits | ||||||||||||||||||||
Noninterest bearing | $ | 291,800 | $ | 273,668 | $ | 257,715 | $ | 217,771 | $ | 236,841 | ||||||||||
Interest bearing | 1,491,889 | 1,482,127 | 1,487,861 | 1,478,705 | 1,486,229 | |||||||||||||||
Total deposits | 1,783,689 | 1,755,795 | 1,745,576 | 1,696,476 | 1,723,070 | |||||||||||||||
FHLB advances and other debt | 92,689 | 92,680 | 108,672 | 137,163 | 111,004 | |||||||||||||||
Advances by borrowers for taxes and insurance | 1,346 | 2,238 | 1,214 | 154 | 1,093 | |||||||||||||||
Operating lease liabilities | 6,083 | 6,229 | 6,387 | 4,949 | 5,127 | |||||||||||||||
Accrued interest payable and other liabilities | 23,183 | 25,144 | 25,652 | 27,322 | 26,209 | |||||||||||||||
Subordinated debentures | 15,009 | 15,000 | 14,990 | 14,980 | 14,971 | |||||||||||||||
Total liabilities | 1,921,999 | 1,897,086 | 1,902,491 | 1,881,044 | 1,881,474 | |||||||||||||||
Stockholders' equity | 172,682 | 168,437 | 164,003 | 159,590 | 157,999 | |||||||||||||||
Total liabilities and stockholders' equity | $ | 2,094,681 | $ | 2,065,523 | $ | 2,066,494 | $ | 2,040,634 | $ | 2,039,473 | ||||||||||
Average Balance Sheet and Yield Analysis | ||||||||||||||||||||||||||
For Three Months Ended | ||||||||||||||||||||||||||
March 31, 2025 | December 31, 2024 | March 31, 2024 | ||||||||||||||||||||||||
Average | Interest | Average | Average | Interest | Average | Average | Interest | Average | ||||||||||||||||||
Outstanding | Earned/ | Yield/ | Outstanding | Earned/ | Yield/ | Outstanding | Earned/ | Yield/ | ||||||||||||||||||
Balance | Paid | Rate | Balance | Paid | Rate | Balance | Paid | Rate | ||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||||
Securities (1) (2) | $ | 13,632 | $ | 139 | 3.49 % | $ | 13,664 | $ | 143 | 3.54 % | $ | 13,077 | $ | 129 | 3.23 % | |||||||||||
Loans and leases and loans held for sale (3) | 1,747,968 | 26,815 | 6.14 % | 1,723,753 | 27,212 | 6.31 % | 1,694,701 | 26,010 | 6.14 % | |||||||||||||||||
Other earning assets | 183,421 | 2,072 | 4.52 % | 198,834 | 2,458 | 4.94 % | 196,600 | 2,782 | 5.66 % | |||||||||||||||||
FHLB and FRB stock | 8,151 | 174 | 8.54 % | 8,914 | 179 | 8.03 % | 8,488 | 165 | 7.78 % | |||||||||||||||||
Total interest-earning assets | 1,953,172 | 29,200 | 5.97 % | 1,945,165 | 29,992 | 6.16 % | 1,912,866 | 29,086 | 6.07 % | |||||||||||||||||
Noninterest-earning assets | 99,873 | 100,867 | 91,328 | |||||||||||||||||||||||
Total assets | $ | 2,053,045 | $ | 2,046,032 | $ | 2,004,194 | ||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||||
Deposits | $ | 1,465,045 | $ | 15,253 | 4.16 % | $ | 1,465,595 | $ | 16,342 | 4.46 % | $ | 1,453,397 | $ | 16,650 | 4.58 % | |||||||||||
FHLB advances and other borrowings | 107,690 | 1,038 | 3.86 % | 121,193 | 1,117 | 3.69 % | 125,724 | 1,152 | 3.67 % | |||||||||||||||||
Total interest-bearing liabilities | 1,572,735 | 16,291 | 4.14 % | 1,586,788 | 17,459 | 4.40 % | 1,579,121 | 17,802 | 4.51 % | |||||||||||||||||
Noninterest-bearing liabilities | 309,457 | 292,733 | 267,714 | |||||||||||||||||||||||
Total liabilities | 1,882,192 | 1,879,521 | 1,846,835 | |||||||||||||||||||||||
Equity | 170,853 | 166,511 | 157,359 | |||||||||||||||||||||||
Total liabilities and equity | $ | 2,053,045 | $ | 2,046,032 | $ | 2,004,194 | ||||||||||||||||||||
Net interest-earning assets | $ | 380,437 | $ | 358,377 | $ | 333,745 | ||||||||||||||||||||
Net interest income/interest rate spread | $ | 12,909 | 1.83 % | $ | 12,533 | 1.76 % | $ | 11,284 | 1.56 % | |||||||||||||||||
Net interest margin | 2.64 % | 2.57 % | 2.36 % | |||||||||||||||||||||||
Average interest-earning assets | ||||||||||||||||||||||||||
to average interest-bearing liabilities | 124.19 % | 122.59 % | 121.13 % | |||||||||||||||||||||||
(1) | Average balance is computed using the carrying value of securities. Average yield is computed using the historical amortized cost average balance for available for sale securities. |
(2) | Average yields and interest earned are stated on a fully taxable equivalent basis. |
(3) | Average balance is computed using the recorded investment in loans net of the allowance for credit losses on loans and leases and includes nonperforming loans and leases. |
Consolidated Financial Highlights | ||||||||||||||||||||
At or for the three months ended | ||||||||||||||||||||
($ in thousands except per share data) | Mar 31, | Dec 31, | Sept 30, | Jun 30, | Mar 31, | |||||||||||||||
(unaudited) | 2025 | 2024 | 2024 | 2024 | 2024 | |||||||||||||||
Earnings and Dividends | ||||||||||||||||||||
Net interest income | $ | 12,909 | $ | 12,533 | $ | 11,460 | $ | 11,367 | $ | 11,284 | ||||||||||
Provision for credit losses | $ | 582 | $ | 1,381 | $ | 558 | $ | 3,561 | $ | 1,237 | ||||||||||
Noninterest income | $ | 1,206 | $ | 1,446 | $ | 1,606 | $ | 1,218 | $ | 905 | ||||||||||
Noninterest expense | $ | 7,954 | $ | 7,433 | $ | 7,226 | $ | 7,092 | $ | 7,187 | ||||||||||
Net income | $ | 4,430 | $ | 4,417 | $ | 4,205 | $ | 1,695 | $ | 3,070 | ||||||||||
Basic earnings per common share | $ | 0.68 | $ | 0.68 | $ | 0.65 | $ | 0.26 | $ | 0.48 | ||||||||||
Diluted earnings per common share | $ | 0.68 | $ | 0.68 | $ | 0.65 | $ | 0.26 | $ | 0.47 | ||||||||||
Dividends declared per share | $ | 0.07 | $ | 0.07 | $ | 0.06 | $ | 0.06 | $ | 0.06 | ||||||||||
Performance Ratios (annualized) | ||||||||||||||||||||
Return on average assets | 0.86 | % | 0.86 | % | 0.84 | % | 0.34 | % | 0.61 | % | ||||||||||
Return on average equity | 10.37 | % | 10.61 | % | 10.38 | % | 4.23 | % | 7.80 | % | ||||||||||
Average yield on interest-earning assets | 5.97 | % | 6.16 | % | 6.30 | % | 6.16 | % | 6.07 | % | ||||||||||
Average rate paid on interest-bearing liabilities | 4.14 | % | 4.40 | % | 4.70 | % | 4.57 | % | 4.51 | % | ||||||||||
Average interest rate spread | 1.83 | % | 1.76 | % | 1.60 | % | 1.59 | % | 1.56 | % | ||||||||||
Net interest margin, fully taxable equivalent | 2.64 | % | 2.57 | % | 2.41 | % | 2.39 | % | 2.36 | % | ||||||||||
Efficiency ratio (3) | 55.94 | % | 53.17 | % | 55.30 | % | 56.35 | % | 58.96 | % | ||||||||||
Noninterest expense to average assets | 1.55 | % | 1.45 | % | 1.44 | % | 1.42 | % | 1.43 | % | ||||||||||
Capital | ||||||||||||||||||||
Tier 1 capital leverage ratio (1) | 10.55 | % | 10.33 | % | 10.36 | % | 10.11 | % | 10.05 | % | ||||||||||
Total risk-based capital ratio (1) | 13.76 | % | 13.60 | % | 13.43 | % | 13.48 | % | 13.50 | % | ||||||||||
Tier 1 risk-based capital ratio (1) | 12.59 | % | 12.45 | % | 12.35 | % | 12.23 | % | 12.31 | % | ||||||||||
Common equity tier 1 capital to risk weighted assets (1) | 12.59 | % | 12.45 | % | 12.35 | % | 12.23 | % | 12.31 | % | ||||||||||
Equity to total assets at end of period | 8.24 | % | 8.15 | % | 7.94 | % | 7.82 | % | 7.75 | % | ||||||||||
Book value per common share | $ | 25.86 | $ | 25.51 | $ | 24.83 | $ | 24.17 | $ | 24.17 | ||||||||||
Tangible book value per common share (2) | $ | 25.86 | $ | 25.51 | $ | 24.83 | $ | 24.17 | $ | 24.17 | ||||||||||
Period-end market value per common share | $ | 22.04 | $ | 25.54 | $ | 21.65 | $ | 18.76 | $ | 19.97 | ||||||||||
Period-end common shares outstanding | 6,476,759 | 6,402,085 | 6,388,110 | 6,387,655 | 6,338,115 | |||||||||||||||
Average basic common shares outstanding | 6,285,649 | 6,258,616 | 6,253,716 | 6,256,457 | 6,329,898 | |||||||||||||||
Average diluted common shares outstanding | 6,285,649 | 6,328,710 | 6,293,908 | 6,256,457 | 6,357,298 | |||||||||||||||
Asset Quality | ||||||||||||||||||||
Nonperforming loans | $ | 14,563 | $ | 14,719 | $ | 14,597 | $ | 10,909 | $ | 7,895 | ||||||||||
Nonperforming loans to total loans | 0.82 | % | 0.87 | % | 0.84 | % | 0.64 | % | 0.46 | % | ||||||||||
Nonperforming assets to total assets | 0.72 | % | 0.71 | % | 0.71 | % | 0.53 | % | 0.39 | % | ||||||||||
Allowance for credit losses on loans and leases to total loans and leases | 1.01 | % | 1.00 | % | 0.97 | % | 1.13 | % | 1.06 | % | ||||||||||
Allowance for credit losses on loans and leases to nonperforming loans and leases | 122.25 | % | 118.72 | % | 114.96 | % | 176.78 | % | 230.50 | % | ||||||||||
Net charge-offs (recoveries) | $ | 23 | $ | 95 | $ | 3,291 | $ | 2,108 | $ | (16) | ||||||||||
Annualized net charge-offs (recoveries) to average loans | 0.01 | % | 0.02 | % | 0.77 | % | 0.49 | % | 0.00 | % | ||||||||||
Average Balances | ||||||||||||||||||||
Loans | $ | 1,763,827 | $ | 1,737,656 | $ | 1,717,886 | $ | 1,704,118 | $ | 1,710,057 | ||||||||||
Assets | $ | 2,053,045 | $ | 2,046,032 | $ | 2,000,421 | $ | 1,997,376 | $ | 2,004,194 | ||||||||||
Stockholders' equity | $ | 170,853 | $ | 166,511 | $ | 162,039 | $ | 160,205 | $ | 157,359 | ||||||||||
(1) | Regulatory capital ratios of CFBank |
(2) | There are no differences between book value per common share and tangible book value per common share since the Company does not have any intangible assets. |
(3) | The efficiency ratio equals noninterest expense (excluding amortization of intangibles and foreclosed asset writedowns) divided by net interest income plus noninterest income (excluding gains or losses on securities transactions). |
NON-GAAP FINANCIAL MEASURE | ||||||||||||
The following non-GAAP financial measure used by the Company provides information useful to investors in understanding the Company's operating performance and trends and facilitates comparisons with the performance of peers. The following table summarizes the non-GAAP financial measure derived from amounts reported in the Company's consolidated financial statements: | ||||||||||||
Pre-provision, pre-tax net revenue ("PPNR") | ||||||||||||
Three Months Ended | ||||||||||||
Mar 31, | December 31, | Mar 31, | ||||||||||
2025 | 2024 | 2024 | ||||||||||
Net income | $ | 4,430 | $ | 4,417 | $ | 3,070 | ||||||
Add: Provision for credit losses | 582 | 1,381 | 1,237 | |||||||||
Add: Income tax expense | 1,149 | 748 | 695 | |||||||||
Pre-provision, pre-tax net revenue | $ | 6,161 | $ | 6,546 | $ | 5,002 | ||||||
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SOURCE CF BANKSHARES INC.
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