CF BANKSHARES INC., PARENT OF CFBANK NA, REPORTS RESULTS FOR THE 2nd QUARTER 2025
COLUMBUS, Ohio, Aug. 4, 2025 /PRNewswire/ -- CF Bankshares Inc. (NASDAQ:CFBK) (the "Company"), the parent of CFBank, National Association ("CFBank"), today announced financial results for the second quarter ended June 30, 2025.
Second Quarter 2025 Highlights
- Net income for Q2 2025 was $5.0 million ($0.77 per diluted common share), which included $1.4 million of Provision expense. This represents a 197% increase in net income over Q2 2024. The provision for credit losses negatively impacted earnings per share by $0.17 for Q2 2025.
- Pre-provision, pre-tax net revenue (PPNR) for Q2 2025 was $7.8 million, which represents a 42% increase over Q2 2024 and a 27% increase over Q1 2025.
- Return on Average Equity (ROE) was 11.47% for Q2 2025, while Return on Average Assets (ROA) was 0.97%.
- Book value per share increased to $26.63 as of June 30, 2025.
- Net Interest Margin (NIM) increased 19bps when compared to the prior quarter and increased 44bps when compared to the Q2 2024. This represents the fifth consecutive quarter in which we have achieved NIM expansion.
- Cost of funds declined 48bps when compared to Q2 2024.
- Efficiency Ratio improved to 49.8% compared to 55.9% for the prior quarter and 56.4% for Q2 2024.
Recent Developments
- On July 1, 2025, the Company's Board of Directors declared a cash dividend of $0.08 per share on its common stock and a corresponding cash dividend of $8.00 per share on its Series D Preferred Stock. The dividend was paid on July 21, 2025 to shareholders of record as of the close of business on July 11, 2025.
CEO and Board Chair Commentary
Timothy T. O'Dell, President and CEO, commented "During the first half of 2025, we continued to successfully execute our key strategic objectives, which include:
- Scaling our Commercial Bank and improving our Loan and Customer Mix through the addition of full-service C&I loan and full-service deposit and treasury management customers.
- Strengthening our Regional Market Leadership, as well as expanding our Commercial & Retail Banking teams by adding additional proven top performers.
- Improving our Deposit franchise by lowering our Cost of Funds and reducing reliance on higher cost funding.
- Reducing and Refinancing Low-Rate loans, predominantly residential mortgage portfolio loans, while we emphasize the growth of Salable Home Mortgage loans throughout our market Footprints.
In addition, to the expansion of and strengthening of our Regional Banking Teams to date, we also generated PPNR of $7.8 million during Q2 while achieving an Efficiency Ratio of below 50%. Our Net Earnings of $5.0 million for Q2, included $1.4 million of Loan Provision expense, as we increased our Allowance for Loan Losses. We also downstreamed $10 million of Capital to the Bank which further increased our regulatory capital ratios.
The significant Leadership & Banking Talent upgrades which have been accomplished, we believe bode well going forward, enabling us to accelerate the execution of our stated Key Strategic & Business Objectives.
Our Bests are yet Ahead!"
Robert E. Hoeweler, Chairman of the Board, added: "We are pleased with our Leadership Team's execution of the Bank's Strategic initiatives, which includes solid Core Earnings growth."
Overview of Results
Net income for the three months ended June 30, 2025 totaled $5.0 million (or $0.77 per diluted common share) compared to net income of $4.4 million (or $0.68 per diluted common share) for the three months ended March 31, 2025 and net income of $1.7 million (or $0.26 per diluted common share) for the three months ended June 30, 2024. PPNR for the three months ended June 30, 2025 was $7.8 million compared to PPNR of $6.2 million for the three months ended March 31, 2025 and PPNR of $5.5 million for the three months ended June 30, 2024.
Net income for the six months ended June 30, 2025 totaled $9.5 million (or $1.45 per diluted common share) compared to net income of $4.8 million (or $0.74 per diluted common share) for the six months ended June 30, 2024. Pre-provision, pre-tax net revenue for the six months ended June 30, 2025 was $14.0 million compared to PPNR of $10.5 million for the six months ended June 30, 2024.
Net Interest Income and Net Interest Margin
Net interest income totaled $14.0 million for the quarter ended June 30, 2025 and increased $1.1 million, or 8.5%, compared to $12.9 million for the prior quarter, and increased $2.6 million, or 23.2%, compared to $11.4 million for the second quarter of 2024.
The increase in net interest income compared to the prior quarter was primarily due to a $1.2 million, or 4.0%, increase in interest income, partially offset by a $67,000 increase in interest expense. The increase in interest income was primarily attributed to a 16bps increase in the average yield on interest-earning assets, coupled with a $24.6 million, or 1.3%, increase in average interest-earning assets. The increase in interest expense when compared to the prior quarter was attributed to a 2bps increase in the average cost of funds on interest-bearing liabilities, partially offset by a $578,000, or 0.04%, decrease in average interest-bearing liabilities. The net interest margin of 2.83% for the quarter ended June 30, 2025 increased 19bps compared to the net interest margin of 2.64% for the prior quarter.
The increase in net interest income compared to the second quarter of 2024 was primarily due to a $1.6 million, or 8.9%, decrease in interest expense, coupled with a $1.0 million, or 3.6%, increase in interest income. The decrease in interest expense was attributed to a 41bps decrease in the average cost of funds on interest-bearing liabilities, partially offset by a $1.4 million, or 0.09%, increase in average interest-bearing liabilities. The increase in interest income was primarily attributed to a $76.5 million, or 4.0%, increase in average interest-earning assets outstanding, partially offset by a 3bps decrease in the average yield on interest-earning assets. The net interest margin of 2.83% for the quarter ended June 30, 2025 increased 44bps compared to the net interest margin of 2.39% for the second quarter of 2024.
Noninterest Income
Noninterest income for the three months ended June 30, 2025 totaled $1.6 million and increased $374,000, or 31.0%, compared to $1.2 million for the prior quarter. The increase was primarily due to a $196,000 increase in SWAP fee income, a $92,000 increase in gain on sales of residential mortgage loans, and a $103,000 decrease in the loss on the sale of a security during the prior quarter.
Noninterest income for the three months ended June 30, 2025 increased $362,000, or 29.7%, compared to $1.2 million for the three months ended June 30, 2024. The increase was primarily due to a $196,000 increase in SWAP fee income, a $119,000 increase in gain on sales of residential mortgage loans, and a $98,000 increase in service charges on deposit accounts.
The following table represents the notional amount of loans sold during the three months ended June 30, 2025, March 31, 2025, and June 30, 2024 (in thousands).
Three Months ended | ||||||||||||
June 30, | March 31, | June 30, | ||||||||||
Notional amount of loans sold | $ | 14,023 | $ | 27,277 | $ | 10,837 | ||||||
Noninterest Expense
Noninterest expense for the quarter ended June 30, 2025 totaled $7.8 million and decreased $200,000, or 2.5%, compared to $8.0 million for the prior quarter. The decrease in noninterest expense was primarily due to a $229,000 decrease in salaries and employee benefits. The decrease in salaries and employee benefits was impacted by a $183,000 decrease in payroll taxes, which on a percentage basis is higher in the first quarter of the year.
Noninterest expense for the quarter ended June 30, 2025 increased $662,000, or 9.3%, compared to $7.1 million for the quarter ended June 30, 2024. The increase in noninterest expense was primarily due to a $384,000 increase in salaries and employee benefits and a $309,000 increase in professional fee expense. The increase in salaries and employee benefits was primarily driven by higher salary expense due to increased FTEs and expense accruals related to staff incentives and deferred compensation incentives in the second quarter of 2025 when compared to the second quarter of 2024. The increase in professional fee expense was predominantly due to increased recruiting expenses in the second quarter of 2025 when compared to the second quarter of 2024.
Income Tax Expense
Income tax expense was $1.4 million for the quarter ended June 30, 2025 (effective tax rate of 21.3%), compared to $1.1 million for the prior quarter (effective tax rate of 20.6%) and $237,000 for the quarter ended June 30, 2024 (effective tax rate of 12.3%).
Loans and Loans Held For Sale
Net loans and leases totaled $1.8 billion at June 30, 2025 and increased $4.7 million, or 0.3%, from the prior quarter and increased $32.8 million, or 1.9%, from December 31, 2024. The increase in loans and leases balances from the prior quarter was primarily due to a $7.1 million increase in commercial and industrial (C&I) loan balances, a $5.1 million increase in commercial real estate loan balances, and an $811,000 increase in home equity lines of credit balances, partially offset by a $3.9 million decrease in single-family residential loan balances, a $3.7 million decrease in construction loan balances, and a $1.3 million increase in the allowance for credit losses on loans.
The increase in loans and leases from December 31, 2024 was primarily due to a $52.8 million increase in commercial real estate loan balances, a $3.3 million increase in home equity lines of credit balances, a $3.0 million increase in commercial and industrial (C&I) loan balances, and a $2.7 million increase in construction loan balances, partially offset by a $27.9 million decrease in single-family residential loan balances and a $1.6 million increase in the allowance for credit losses on loans. The decrease in single-family residential loan balances was due primarily to the sale of two portfolios of loans in the first quarter of 2025 totaling $18.1 million.
The following table presents the recorded investment in loans and leases for certain non-owner-occupied loan types (in thousands).
June 30, 2025 | March 31, 2025 | |||||||
Construction – 1-4 family* | $ | 29,131 | $ | 29,430 | ||||
Construction – Multi-family* | 157,743 | 155,983 | ||||||
Construction – Non-residential* | 18,785 | 23,646 | ||||||
Hotel/Motel | 11,853 | 11,926 | ||||||
Industrial / Warehouse | 75,408 | 74,068 | ||||||
Land/Land Development | 32,942 | 33,195 | ||||||
Medical/Healthcare/Senior Housing | 2,045 | 2,184 | ||||||
Multi-family | 218,523 | 211,937 | ||||||
Office | 40,150 | 41,109 | ||||||
Retail | 69,815 | 71,948 | ||||||
Other | 7,424 | 7,603 | ||||||
* 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 $16.6 million, or 0.94% of total loans at June 30, 2025, an increase of $2.1 million from $14.5 million at March 31, 2025 and December 31, 2024.
Loans 30 days or more past due totaled $15.2 million at June 30, 2025, compared to $11.4 million at March 31, 2025 and $12.5 million at December 31, 2024.
The allowance for credit losses on loans and leases totaled $19.1 million at June 30, 2025 compared to $17.8 million at March 31, 2025 and $17.5 million at December 31, 2024. The ratio of the allowance for credit losses on loans and leases to total loans and leases was 1.08% at June 30, 2025 compared to 1.01% at March 31, 2025 and 1.00% at December 31, 2024.
There was $1.4 million in provision for credit losses expense for the quarter ended June 30, 2025, compared to $582,000 for the quarter ended March 31, 2025 and $3.6 million for the quarter ended June 30, 2024. Net charge-offs for the quarter ended June 30, 2025 totaled $51,000, compared to net charge-offs of $23,000 for the prior quarter and net charge-offs of $2.1 million for the quarter ended June 30, 2024. The increase in provision expense and the allowance for credit losses on loans was driven by a $1.2 million increase in the specific reserve on a loan participation. This participation was purchased in 2022 and is not part of the Bank's core loan portfolio.
Deposits
Deposits totaled $1.81 billion at June 30, 2025, an increase of $26.2 million, or 1.5%, when compared to $1.78 billion at March 31, 2025, and an increase of $54.1 million, or 3.1%, when compared to $1.76 million at December 31, 2024. The increase when compared to March 31, 2025 was primarily due to a $21.6 million increase in interest-bearing account balances, coupled with a $4.5 million increase in noninterest-bearing accounts balances. The increase when compared to December 31, 2024 was primarily due to a $31.4 million increase in interest-bearing account balances, coupled with a $22.7 million increase in noninterest-bearing accounts balances.
At June 30, 2025, approximately 29.1% of our deposit balances exceeded the FDIC insurance limit of $250,000, as compared to approximately 31.1% at March 31, 2025 and approximately 29.8% at December 31, 2024.
Borrowings
FHLB advances and other debt totaled $100.9 million at June 30, 2025, compared to $92.7 million March 31, 2025 and December 31, 2024. The increase was primarily due to a $10 million increase in the outstanding balance on the holding company credit facility.
Capital
Stockholders' equity totaled $177.0 million at June 30, 2025, an increase of $4.3 million, or 2.5%, when compared to $172.7 million at March 31, 2025, and an increase of $8.6 million, or 5.1%, from $168.4 million at December 31, 2024. The increase in total stockholders' equity during the three months ended June 30, 2025 was primarily attributed to net income, partially offset by $456,000 in dividend payments. The increase in stockholders' equity during the six months ended June 30, 2025 was primarily attributed to net income, partially offset by $909,000 in dividend payments.
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 the United States of America ("GAAP"). Non-GAAP financial measures included in this earnings release include Pre-Provision, Pre-Tax Net Revenue (PPNR). Management uses this "non-GAAP" financial measure in its analysis of the Company's performance and believes that this non-GAAP financial measure provides a greater understanding of ongoing operations and enhances comparability of results with prior periods and peers. These disclosures should not be viewed as substitutes for financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. A reconciliation of this non-GAAP financial measure to the most directly comparable GAAP financial measure is included at the end of this earnings release under the heading "GAAP TO NON-GAAP RECONCILIATION."
About CF Bankshares Inc. and CFBank
CF Bankshares Inc. (the "Company") is a holding company that owns 100% of the stock of CFBank, National Association ("CFBank"). CFBank is a nationally chartered boutique Commercial bank operating primarily in Five (5) Major Metro Markets: Columbus, Cleveland, Cincinnati, and Akron Ohio, and Indianapolis, Indiana. The current Leadership Team and Board recapitalized the Company and CFBank in 2012 during the financial crisis, repositioning CFBank as a full-service Commercial Bank model. Since the 2012 recapitalization, CFBank has achieved a CAGR in excess of 20%.
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 U.S. Private Securities Reform Act of 1995, which are made in good faith by us. Forward-looking statements include, but are not limited to: (1) projections of revenues, income or loss, earnings or loss per common share, capital structure and other financial items; (2) plans and objectives of the management or Boards of Directors of the Company or CFBank; (3) statements regarding future events, actions or economic performance; and (4) statements of assumptions underlying such statements. Words such as "estimate," "strategy," "may," "believe," "anticipate," "expect," "predict," "will," "intend," "plan," "targeted," and the negative of these terms, or similar expressions, are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. Various risks and uncertainties may cause actual results to differ materially from those indicated by our forward-looking statements, including, without limitation those risks detailed from time to time in our reports filed with the SEC, including those risk factors identified in "Item 1A. Risk Factors" of Part I of our Annual Report on Form 10-K filed with SEC for the year ended December 31, 2024.
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)
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(unaudited) | Three months ended | Six months ended | |||||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||||||
2025 | 2024 | % change | 2025 | 2024 | % change | ||||||||||||||||||||||
Total interest income | $ | 30,359 | $ | 29,315 | 4 | % | $ | 59,559 | $ | 58,401 | 2 | % | |||||||||||||||
Total interest expense | 16,358 | 17,948 | -9 | % | 32,649 | 35,750 | -9 | % | |||||||||||||||||||
Net interest income | 14,001 | 11,367 | 23 | % | 26,910 | 22,651 | 19 | % | |||||||||||||||||||
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Provision for credit losses | |||||||||||||||||||||||||||
Provision for credit losses-loans | 1,370 | 3,195 | -57 | % | 1,722 | 4,512 | -62 | % | |||||||||||||||||||
Provision for credit losses-unfunded | 57 | 366 | -84 | % | 287 | 286 | 0 | % | |||||||||||||||||||
1,427 | 3,561 | -60 | % | 2,009 | 4,798 | -58 | % | ||||||||||||||||||||
Net interest income after provision for | 12,574 | 7,806 | 61 | % | 24,901 | 17,853 | 39 | % | |||||||||||||||||||
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Noninterest income | |||||||||||||||||||||||||||
Service charges on deposit accounts | 721 | 623 | 16 | % | 1,388 | 1,182 | 17 | % | |||||||||||||||||||
Net gain on sales of residential | 206 | 87 | 137 | % | 320 | 177 | 81 | % | |||||||||||||||||||
Net gain (loss) on sales of | — | — | n/m | (18) | 167 | n/m | |||||||||||||||||||||
Net loss on sale of equity security | — | — | n/m | (103) | — | n/m | |||||||||||||||||||||
Swap fee income | 196 | — | n/m | 196 | — | n/m | |||||||||||||||||||||
Other | 457 | 508 | -10 | % | 1,003 | 597 | 68 | % | |||||||||||||||||||
Noninterest income | 1,580 | 1,218 | 30 | % | 2,786 | 2,123 | 31 | % | |||||||||||||||||||
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Noninterest expense | |||||||||||||||||||||||||||
Salaries and employee benefits | 3,954 | 3,570 | 11 | % | 8,137 | 7,078 | 15 | % | |||||||||||||||||||
Occupancy and equipment | 417 | 471 | -11 | % | 851 | 905 | -6 | % | |||||||||||||||||||
Data processing | 683 | 649 | 5 | % | 1,357 | 1,264 | 7 | % | |||||||||||||||||||
Franchise and other taxes | 304 | 356 | -15 | % | 607 | 642 | -5 | % | |||||||||||||||||||
Professional fees | 899 | 590 | 52 | % | 1,686 | 1,253 | 35 | % | |||||||||||||||||||
Director fees | 180 | 143 | 26 | % | 357 | 268 | 33 | % | |||||||||||||||||||
Postage, printing, and supplies | 46 | 42 | 10 | % | 95 | 86 | 10 | % | |||||||||||||||||||
Advertising and marketing | 84 | 38 | 121 | % | 128 | 52 | 146 | % | |||||||||||||||||||
Telephone | 43 | 52 | -17 | % | 98 | 103 | -5 | % | |||||||||||||||||||
Loan expenses | 196 | 259 | -24 | % | 521 | 706 | -26 | % | |||||||||||||||||||
Foreclosed assets, net | 3 | — | n/m | 4 | — | n/m | |||||||||||||||||||||
Depreciation | 118 | 122 | -3 | % | 236 | 252 | -6 | % | |||||||||||||||||||
FDIC premiums | 534 | 499 | 7 | % | 1,080 | 1,099 | -2 | % | |||||||||||||||||||
Regulatory assessment | 64 | 66 | -3 | % | 129 | 131 | -2 | % | |||||||||||||||||||
Other insurance | 50 | 51 | -2 | % | 96 | 107 | -10 | % | |||||||||||||||||||
Other | 179 | 184 | -3 | % | 326 | 333 | -2 | % | |||||||||||||||||||
Noninterest expense | 7,754 | 7,092 | 9 | % | 15,708 | 14,279 | 10 | % | |||||||||||||||||||
Income before income taxes | 6,400 | 1,932 | 231 | % | 11,979 | 5,697 | 110 | % | |||||||||||||||||||
Income tax expense | 1,365 | 237 | 476 | % | 2,514 | 932 | 170 | % | |||||||||||||||||||
Net income | 5,035 | 1,695 | 197 | % | 9,465 | 4,765 | 99 | % | |||||||||||||||||||
Earnings allocated to participating | (155) | (54) | n/m | (292) | (121) | n/m | |||||||||||||||||||||
Net Income attributable to common | $ | 4,880 | $ | 1,641 | 197 | % | $ | 9,173 | $ | 4,644 | 98 | % | |||||||||||||||
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Share Data | |||||||||||||||||||||||||||
Basic earnings per common share | $ | 0.77 | $ | 0.26 | $ | 1.46 | $ | 0.74 | |||||||||||||||||||
Diluted earnings per common share | $ | 0.77 | $ | 0.26 | $ | 1.45 | $ | 0.74 | |||||||||||||||||||
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Average common shares | 6,300,427 | 6,256,457 | 6,293,078 | 6,293,178 | |||||||||||||||||||||||
Average common shares | 6,344,833 | 6,256,457 | 6,315,281 | 6,306,878 | |||||||||||||||||||||||
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n/m - not meaningful | |||||||||||||||||||||||||||
Consolidated Statements of Financial Condition
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($ in thousands) | Jun 30, | Mar 31, | Dec 31, | Sept 30, | Jun 30, | |||||||||||||||||||
(unaudited) | 2025 | 2025 | 2024 | 2024 | 2024 | |||||||||||||||||||
Assets | ||||||||||||||||||||||||
Cash and cash equivalents | $ | 275,684 | $ | 240,986 | $ | 235,272 | $ | 233,520 | $ | 241,775 | ||||||||||||||
Interest-bearing deposits in other | 100 | 100 | 100 | 100 | 100 | |||||||||||||||||||
Securities available for sale | 8,996 | 8,793 | 8,683 | 8,690 | 8,323 | |||||||||||||||||||
Equity securities | - | - | 5,000 | 5,000 | 5,000 | |||||||||||||||||||
Loans held for sale | 1,613 | 3,505 | 2,623 | 5,240 | 3,187 | |||||||||||||||||||
Loans and leases | 1,773,930 | 1,767,942 | 1,739,493 | 1,733,855 | 1,706,980 | |||||||||||||||||||
Less allowance for credit losses | (19,122) | (17,803) | (17,474) | (16,780) | (19,285) | |||||||||||||||||||
Loans and leases, net | 1,754,808 | 1,750,139 | 1,722,019 | 1,717,075 | 1,687,695 | |||||||||||||||||||
FHLB and FRB stock | 8,031 | 8,022 | 8,918 | 8,908 | 9,830 | |||||||||||||||||||
Foreclosed assets, net | 524 | 524 | - | - | - | |||||||||||||||||||
Premises and equipment, net | 3,469 | 3,472 | 3,536 | 3,480 | 3,571 | |||||||||||||||||||
Operating lease right of use | 5,760 | 5,925 | 6,087 | 6,259 | 4,858 | |||||||||||||||||||
Bank owned life insurance | 27,573 | 27,341 | 27,116 | 26,899 | 26,683 | |||||||||||||||||||
Accrued interest receivable and | 46,979 | 45,874 | 46,169 | 51,323 | 49,612 | |||||||||||||||||||
Total assets | $ | 2,133,537 | $ | 2,094,681 | $ | 2,065,523 | $ | 2,066,494 | $ | 2,040,634 | ||||||||||||||
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Liabilities and Stockholders' Equity | ||||||||||||||||||||||||
Deposits | ||||||||||||||||||||||||
Noninterest bearing | $ | 296,348 | $ | 291,800 | $ | 273,668 | $ | 257,715 | $ | 217,771 | ||||||||||||||
Interest bearing | 1,513,500 | 1,491,889 | 1,482,127 | 1,487,861 | 1,478,705 | |||||||||||||||||||
Total deposits | 1,809,848 | 1,783,689 | 1,755,795 | 1,745,576 | 1,696,476 | |||||||||||||||||||
FHLB advances and other debt | 100,947 | 92,689 | 92,680 | 108,672 | 137,163 | |||||||||||||||||||
Advances by borrowers for taxes | 374 | 1,346 | 2,238 | 1,214 | 154 | |||||||||||||||||||
Operating lease liabilities | 5,932 | 6,083 | 6,229 | 6,387 | 4,949 | |||||||||||||||||||
Accrued interest payable and | 24,394 | 23,183 | 25,144 | 25,652 | 27,322 | |||||||||||||||||||
Subordinated debentures | 15,019 | 15,009 | 15,000 | 14,990 | 14,980 | |||||||||||||||||||
Total liabilities | 1,956,514 | 1,921,999 | 1,897,086 | 1,902,491 | 1,881,044 | |||||||||||||||||||
Stockholders' equity | 177,023 | 172,682 | 168,437 | 164,003 | 159,590 | |||||||||||||||||||
Total liabilities and stockholders' | $ | 2,133,537 | $ | 2,094,681 | $ | 2,065,523 | $ | 2,066,494 | $ | 2,040,634 | ||||||||||||||
Average Balance Sheet and Yield Analysis
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For Three Months Ended | ||||||||||||||||||||||||||
June 30, 2025 | March 31, 2025 | June 30, 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) | $ | 8,830 | $ | 40 | 1.45 % | $ | 13,632 | $ | 139 | 3.49 % | $ | 12,902 | $ | 133 | 3.37 % | |||||||||||
Loans and leases and loans held for sale (3) | 1,760,308 | 27,907 | 6.34 % | 1,747,968 | 26,815 | 6.14 % | 1,688,522 | 26,339 | 6.24 % | |||||||||||||||||
Other earning assets | 200,614 | 2,259 | 4.50 % | 183,421 | 2,072 | 4.52 % | 191,199 | 2,679 | 5.60 % | |||||||||||||||||
FHLB and FRB stock | 8,028 | 153 | 7.62 % | 8,151 | 174 | 8.54 % | 8,646 | 164 | 7.59 % | |||||||||||||||||
Total interest-earning assets | 1,977,780 | 30,359 | 6.13 % | 1,953,172 | 29,200 | 5.97 % | 1,901,269 | 29,315 | 6.16 % | |||||||||||||||||
Noninterest-earning assets | 97,153 | 99,873 | 96,107 | |||||||||||||||||||||||
Total assets | $ | 2,074,933 | $ | 2,053,045 | $ | 1,997,376 | ||||||||||||||||||||
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Interest-bearing liabilities: | ||||||||||||||||||||||||||
Deposits | $ | 1,464,909 | $ | 15,186 | 4.15 % | $ | 1,465,045 | $ | 15,253 | 4.16 % | $ | 1,443,860 | $ | 16,784 | 4.65 % | |||||||||||
FHLB advances and other borrowings | 107,248 | 1,172 | 4.37 % | 107,690 | 1,038 | 3.86 % | 126,918 | 1,164 | 3.67 % | |||||||||||||||||
Total interest-bearing liabilities | 1,572,157 | 16,358 | 4.16 % | 1,572,735 | 16,291 | 4.14 % | 1,570,778 | 17,948 | 4.57 % | |||||||||||||||||
Noninterest-bearing liabilities | 327,187 | 309,457 | 266,393 | |||||||||||||||||||||||
Total liabilities | 1,899,344 | 1,882,192 | 1,837,171 | |||||||||||||||||||||||
Equity | 175,589 | 170,853 | 160,205 | |||||||||||||||||||||||
Total liabilities and equity | $ | 2,074,933 | $ | 2,053,045 | $ | 1,997,376 | ||||||||||||||||||||
Net interest-earning assets | $ | 405,623 | $ | 380,437 | $ | 330,491 | ||||||||||||||||||||
Net interest income/interest rate spread | $ | 14,001 | 1.97 % | $ | 12,909 | 1.83 % | $ | 11,367 | 1.59 % | |||||||||||||||||
Net interest margin | 2.83 % | 2.64 % | 2.39 % | |||||||||||||||||||||||
Average interest-earning assets to average interest-bearing liabilities | 125.80 % | 124.19 % | 121.04 % | |||||||||||||||||||||||
(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
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At or for the three months ended | Six months ended | ||||||||||||||||||||||||||||||||||
($ in thousands except per share | Jun 30, | Mar 31, | Dec 31, | Sept 30, | Jun 30, | June 30, | |||||||||||||||||||||||||||||
(unaudited) | 2025 | 2025 | 2024 | 2024 | 2024 | 2025 | 2024 | ||||||||||||||||||||||||||||
Earnings and Dividends | |||||||||||||||||||||||||||||||||||
Net interest income | $ | 14,001 | $ | 12,909 | $ | 12,533 | $ | 11,460 | $ | 11,367 | $ | 26,910 | $ | 22,651 | |||||||||||||||||||||
Provision for credit losses | $ | 1,427 | $ | 582 | $ | 1,381 | $ | 558 | $ | 3,561 | $ | 2,009 | $ | 4,798 | |||||||||||||||||||||
Noninterest income | $ | 1,580 | $ | 1,206 | $ | 1,446 | $ | 1,606 | $ | 1,218 | $ | 2,786 | $ | 2,123 | |||||||||||||||||||||
Noninterest expense | $ | 7,754 | $ | 7,954 | $ | 7,433 | $ | 7,226 | $ | 7,092 | $ | 15,708 | $ | 14,279 | |||||||||||||||||||||
Net income | $ | 5,035 | $ | 4,430 | $ | 4,417 | $ | 4,205 | $ | 1,695 | $ | 9,465 | $ | 4,765 | |||||||||||||||||||||
Basic earnings per common share | $ | 0.77 | $ | 0.68 | $ | 0.68 | $ | 0.65 | $ | 0.26 | $ | 1.46 | $ | 0.74 | |||||||||||||||||||||
Diluted earnings per common share | $ | 0.77 | $ | 0.68 | $ | 0.68 | $ | 0.65 | $ | 0.26 | $ | 1.45 | $ | 0.74 | |||||||||||||||||||||
Dividends declared per share | $ | 0.07 | $ | 0.07 | $ | 0.07 | $ | 0.06 | $ | 0.06 | $ | 0.14 | $ | 0.12 | |||||||||||||||||||||
Performance Ratios (annualized) | |||||||||||||||||||||||||||||||||||
Return on average assets | 0.97 | % | 0.86 | % | 0.86 | % | 0.84 | % | 0.34 | % | 0.92 | % | 0.48 | % | |||||||||||||||||||||
Return on average equity | 11.47 | % | 10.37 | % | 10.61 | % | 10.38 | % | 4.23 | % | 10.93 | % | 6.00 | % | |||||||||||||||||||||
Average yield on interest-earning | 6.13 | % | 5.97 | % | 6.16 | % | 6.30 | % | 6.16 | % | 6.05 | % | 6.12 | % | |||||||||||||||||||||
Average rate paid on interest-bearing | 4.16 | % | 4.14 | % | 4.40 | % | 4.70 | % | 4.57 | % | 4.15 | % | 4.54 | % | |||||||||||||||||||||
Average interest rate spread | 1.97 | % | 1.83 | % | 1.76 | % | 1.60 | % | 1.59 | % | 1.90 | % | 1.58 | % | |||||||||||||||||||||
Net interest margin, fully taxable | 2.83 | % | 2.64 | % | 2.57 | % | 2.41 | % | 2.39 | % | 2.74 | % | 2.37 | % | |||||||||||||||||||||
Efficiency ratio (3) | 49.77 | % | 55.94 | % | 53.17 | % | 55.30 | % | 56.35 | % | 52.90 | % | 57.64 | % | |||||||||||||||||||||
Noninterest expense to average | 1.49 | % | 1.55 | % | 1.45 | % | 1.44 | % | 1.42 | % | 1.52 | % | 1.43 | % | |||||||||||||||||||||
Capital | |||||||||||||||||||||||||||||||||||
Tier 1 capital leverage ratio (1) | 11.20 | % | 10.55 | % | 10.33 | % | 10.36 | % | 10.11 | % | 11.20 | % | 10.11 | % | |||||||||||||||||||||
Total risk-based capital ratio (1) | 14.69 | % | 13.76 | % | 13.60 | % | 13.43 | % | 13.48 | % | 14.69 | % | 13.48 | % | |||||||||||||||||||||
Tier 1 risk-based capital ratio (1) | 13.45 | % | 12.59 | % | 12.45 | % | 12.35 | % | 12.23 | % | 13.45 | % | 12.23 | % | |||||||||||||||||||||
Common equity tier 1 capital to risk weighted assets (1) | 13.45 | % | 12.59 | % | 12.45 | % | 12.35 | % | 12.23 | % | 13.45 | % | 12.23 | % | |||||||||||||||||||||
Equity to total assets at end of period | 8.30 | % | 8.24 | % | 8.15 | % | 7.94 | % | 7.82 | % | 8.30 | % | 7.82 | % | |||||||||||||||||||||
Book value per common share | $ | 26.63 | $ | 25.86 | $ | 25.51 | $ | 24.83 | $ | 24.17 | $ | 26.63 | $ | 24.17 | |||||||||||||||||||||
Tangible book value per common | $ | 26.63 | $ | 25.86 | $ | 25.51 | $ | 24.83 | $ | 24.17 | $ | 26.63 | $ | 24.17 | |||||||||||||||||||||
Period-end market value per | $ | 23.97 | $ | 22.04 | $ | 25.54 | $ | 21.65 | $ | 18.76 | $ | 23.97 | $ | 18.76 | |||||||||||||||||||||
Period-end common shares | 6,447,692 | 6,476,759 | 6,402,085 | 6,388,110 | 6,387,655 | 6,447,692 | 6,387,655 | ||||||||||||||||||||||||||||
Average basic common shares | 6,300,427 | 6,285,649 | 6,258,616 | 6,253,716 | 6,256,457 | 6,293,078 | 6,293,178 | ||||||||||||||||||||||||||||
Average diluted common shares | 6,344,833 | 6,285,649 | 6,328,710 | 6,293,908 | 6,256,457 | 6,315,281 | 6,306,878 | ||||||||||||||||||||||||||||
Asset Quality | |||||||||||||||||||||||||||||||||||
Nonperforming loans | $ | 16,632 | $ | 14,563 | $ | 14,719 | $ | 14,597 | $ | 10,909 | $ | 16,632 | $ | 10,909 | |||||||||||||||||||||
Nonperforming loans to total loans | 0.94 | % | 0.82 | % | 0.87 | % | 0.84 | % | 0.64 | % | 0.94 | % | 0.64 | % | |||||||||||||||||||||
Nonperforming assets to total assets | 0.80 | % | 0.72 | % | 0.71 | % | 0.71 | % | 0.53 | % | 0.80 | % | 0.53 | % | |||||||||||||||||||||
Allowance for credit losses on loans and leases to total loans and leases | 1.08 | % | 1.01 | % | 1.00 | % | 0.97 | % | 1.13 | % | 1.08 | % | 1.13 | % | |||||||||||||||||||||
Allowance for credit losses on loans and leases to nonperforming loans and leases | 114.97 | % | 122.25 | % | 118.72 | % | 114.96 | % | 176.78 | % | 114.97 | % | 176.78 | % | |||||||||||||||||||||
Net charge-offs (recoveries) | $ | 51 | $ | 23 | $ | 95 | $ | 3,291 | $ | 2,108 | $ | 74 | $ | 2,092 | |||||||||||||||||||||
Annualized net charge-offs (recoveries) to average loans | 0.01 | % | 0.01 | % | 0.02 | % | 0.77 | % | 0.49 | % | 0.01 | % | 0.25 | % | |||||||||||||||||||||
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Average Balances | |||||||||||||||||||||||||||||||||||
Loans | $ | 1,775,865 | $ | 1,763,827 | $ | 1,737,656 | $ | 1,717,886 | $ | 1,704,118 | $ | 1,769,879 | $ | 1,707,088 | |||||||||||||||||||||
Assets | $ | 2,074,933 | $ | 2,053,045 | $ | 2,046,032 | $ | 2,000,421 | $ | 1,997,376 | $ | 2,064,049 | $ | 2,000,785 | |||||||||||||||||||||
Stockholders' equity | $ | 175,589 | $ | 170,853 | $ | 166,511 | $ | 162,039 | $ | 160,205 | $ | 173,234 | $ | 158,782 | |||||||||||||||||||||
(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")
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Three Months Ended | Six months ended | |||||||||||||||||||||||
Jun 30, | Mar 31, | Jun 30, | Jun 30, | |||||||||||||||||||||
2025 | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
Net income | $ | 5,035 | $ | 4,430 | $ | 1,695 | $ | 9,465 | $ | 4,765 | ||||||||||||||
Add: Provision for credit losses | 1,427 | 582 | 3,561 | 2,009 | 4,798 | |||||||||||||||||||
Add: Income tax expense | 1,365 | 1,149 | 237 | 2,514 | 932 | |||||||||||||||||||
Pre-provision, pre-tax net revenue | $ | 7,827 | $ | 6,161 | $ | 5,493 | $ | 13,988 | $ | 10,495 | ||||||||||||||
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SOURCE CF BANKSHARES INC.