COLUMBUS, Ohio, Aug. 3, 2022
/PRNewswire/ -- CF Bankshares Inc. (NASDAQ: CFBK) (the "Company"),
the parent of CFBank, today announced financial results for the
second quarter ended June 30,
2022.
Second Quarter and First Half 2022 Highlights
- Net Income of $4.7 million
for the second quarter and $9.2
million YTD and Earnings Per Share (EPS) of
$0.72 for Q2 and
$1.41 YTD.
- Return on Average Assets (ROA) and Return on Average Equity
(ROE) were 1.18% and 14.61%, respectively for the
second quarter. For the first six months of 2022, ROA was
1.21% and ROE was 14.47%.
- Net interest income expanded $771,000, or 7.2%, during the second
quarter, when compared to the quarter ended March 31, 2022.
- Book value per share increased to $20.25 at June 30,
2022.
- Net loans and leases grew by $97
million, or 7.6%, during the quarter. Net loans
and leases totaled $1.4 billion at
June 30, 2022.
- Credit quality remains strong with loans more than 30 days past
due at 0.05% of total loans and classified and criticized
loans were further reduced during the quarter to 0.23% of
total loans at June 30, 2022.
Recent Developments
- On July 5, 2022, the Company's
Board of Directors declared a Cash Dividend of $0.05 per share payable on July 26, 2022 to shareholders of record as of the
close of business on July 15, 2022.
This represented a 25% increase in our quarterly cash
dividend.
- In June 2022, CFBank opened a
full-service Retail branch and Commercial Banking presence in
Indianapolis, Indiana.
CEO and Board Chair Commentary
Timothy T. O'Dell, President and
CEO, commented, "Our strong growth trajectory continued during the
second quarter, with loans increasing by nearly $100 million. Our ongoing acquisition of banking
talent is translating into increasing business opportunities and
growing pipelines. Commercial Banking is leading our growth, with
Retail Mortgage Lending volumes also performing well. Our ongoing
investments in proven performers and expanding our market presence
is setting the table for both future growth and business
diversification through adding and/or expanding business
niches. Included in these specialty business niches targeted
are Practice Finance, Equipment Financing and working with
Non-Profit and Public Fund entities.
We are having good success attracting top talent to our
Commercial Banking and other teams. Seasoned performers are
attracted by the relative sophistication of CFBank as compared to
larger regionals, along with our entrepreneurial business approach
and team focused environment.
Our ongoing business investments include adding Banking talent,
along with upgrading our operating platforms, extending product
offerings, increasing business niches, and expanding our geographic
footprint, are being balanced while sustaining earnings
performance.
Credit quality remains strong and stable, as evidenced by
further reductions of criticized and classified loans during the
second quarter, along with zero commercial delinquencies as of
June 30, 2022. We remain highly
disciplined in our underwriting as well as diligent in monitoring
the performance of our loan portfolios against an uncertain
economic backdrop. If needed moving forward, the Holding
Company has capital available through a credit facility that could
be utilized to downstream additional capital to the Bank.
Until we gain greater clarity on the underlying economic strength,
we have temporarily suspended share repurchases to preserve
capital. Because we remain confident in our earnings and
performance, our dividend was recently increased.
We feel extremely well positioned moving forward, given our
strong capital and credit quality, along with having access to
additional capital from our holding company, to continue to
prudently grow market share."
Robert E. Hoeweler, Chairman of
the Board, added: "CF Bankshares is uniquely positioned through its
exceptional management team and leadership to be able to cope with
the pending economic problems of our day. This is not the first
time we have been through challenging periods, nor will it be the
last cycle. CFBank is in a strong position, well prepared to
protect our depositors, serve our customers and communities, along
with rewarding the interests of our shareholders. We are committed
to doing these things to the very best of our abilities."
We are just Revving Up!
Overview of Results
Net income for the three months ended June 30, 2022 totaled $4.7
million (or $0.72 per diluted
common share) compared to net income of $4.5
million (or $0.69 per diluted
common share) for the three months ended March 31, 2022 and net income of $3.5 million (or $0.52 per diluted common share) for the three
months ended June 30, 2021.
Net income for the six months ended June
30, 2022 totaled $9.2 million
(or $1.41 per diluted common share)
compared to net income of $9.9
million (or $1.48 per diluted
common share) for the six months ended June
30, 2021.
The decrease in net income for six months ended June 30, 2022 when compared to June 30, 2021 was primarily the result of
decreased volumes on Direct to Consumer (DTC) residential mortgage
loans, partially offset by an increase in net interest income and a
decrease in other noninterest expense.
During the second quarter of 2022, as a result of declining
mortgage margins, we exited the saleable-to-investors mortgage
business in favor of portfolio lending with servicing retained.
Net Interest Income and Net Interest Margin
Net interest income totaled $11.5
million for the quarter ended June
30, 2022 and increased $771,000, or 7.2%, compared to $10.8 million in the prior quarter, and increased
$505,000, or 4.6%, compared to
$11.0 million in the second quarter
of 2021. The increase in net interest income compared to the
prior quarter was primarily due to a $1.6
million, or 11.8%, increase in interest income, partially
offset by a $782,000, or 32.9%,
increase in interest expense. The increase in interest income
was primarily attributed to a $136.9
million, or 9.9%, increase in average interest-earning
assets outstanding, coupled with a 6bps increase in average yield
on interest-earning assets. The increase in interest expense
when compared to the prior quarter was attributed to a $141.3 million, or 13.3%, increase in average
interest-bearing liabilities, coupled with a 15bps increase in the
average cost of funds on interest-bearing liabilities. The net
interest margin of 3.04% for the quarter ended June 30, 2022 decreased 9bps compared to the net
interest margin of 3.13% for the prior quarter. The net
interest margin was impacted by higher levels of cash during the
second quarter, which has a lower yield.
The increase in net interest income compared to the second
quarter of 2021 was primarily due to an $1.0
million, or 7.6%, increase in interest income, partially
offset by a $539,000, or 20.6%,
increase in interest expense. The increase in interest income
was primarily attributed to a 23bps increase in the average yield
on interest-earning assets, coupled with a $19.5 million, or 1.3%, increase in average
interest-earning assets outstanding. The increase in interest
expense was attributed to an 18bps increase in the average cost of
funds on interest-bearing liabilities, partially offset by a
$9.1 million, or 0.8%, decrease in
average interest-bearing liabilities. The net interest margin of
3.04% for the quarter ended June 30,
2022 increased 9bps compared to the net interest margin of
2.95% for the second quarter of 2021.
Noninterest Income
Noninterest income for the quarter ended June 30, 2022 totaled $808,000 and decreased $238,000, or 22.8%, compared to $1.0 million for the prior quarter. The
decrease was primarily due to a $436,000 decrease in the net gain on sales of
residential mortgage loans, partially offset by a $143,000 increase in gain on sales of SBA
loans.
Noninterest income for the quarter ended June 30, 2022 decreased $143,000, or 15.0%, compared to $951,000 for the quarter ended June 30, 2021. The decrease was primarily
due to a $1.0 million decrease in net
gain on sales of SBA loans, partially offset by an $865,000 increase in net gain on sales of
residential mortgage loans.
During the second quarter 2022, we exited the
saleable-to-investors mortgage business in favor of portfolio
lending with servicing retained. The following table represents the
notional amount of loans sold during the three months ended
June 30, 2022, March 31, 2022, and June
30, 2021.
|
|
|
|
|
|
|
|
|
|
Three Months
ended
|
|
June 30,
2022
|
|
March 31,
2022
|
|
June 30,
2021
|
Notional amount of
loans sold
|
$
|
9,368
|
|
$
|
85,180
|
|
$
|
972,250
|
The following table represents the revenue recognized on
mortgage activities for the three months ended June 30, 2022, March 31,
2022, and June 30, 2021 (in
thousands)
|
|
|
|
|
|
|
|
|
|
Three Months
ended
|
|
June 30,
2022
|
|
March 31,
2022
|
|
June 30,
2021
|
Gain (loss) on loans
sold
|
$
|
(103)
|
|
$
|
61
|
|
$
|
2,289
|
Gain (loss) from change
in fair value of loans held-for-sale
|
|
92
|
|
|
(448)
|
|
|
1,012
|
Gain (loss) from change
in fair value of derivatives
|
|
132
|
|
|
944
|
|
|
(4,045)
|
|
$
|
121
|
|
$
|
557
|
|
$
|
(744)
|
Noninterest Expense
Noninterest expense for the quarter ended June 30, 2022 totaled $6.5
million and increased $195,000, or 3.1%, compared to $6.3 million for the prior quarter. The
increase in noninterest expense was primarily due to a $89,000 increase in advertising and marketing
expense, a $76,000 increase in FDIC
premiums and a $38,000 increase in
professional fees, partially offset by a $43,000 decrease in salaries and employee
benefits expense.
Noninterest expense for the quarter ended June 30, 2022 decreased $2.8 million, or 30.2%, compared to $9.3 million for the quarter ended June 30, 2021. The decrease in noninterest
expense was primarily due to a $1.1
million decrease in advertising and marketing expense, a
$973,000 decrease in salaries and
employee benefits, and a $736,000
decrease in professional fees. The decreases in advertising and
marketing expense, salaries and employee benefits expense, and
professional fees were primarily the result of our scale down and
exit of the saleable-to-investor mortgage business in favor of
portfolio lending with servicing retained.
During the 3rd quarter of 2022, we will be converting
our core processing platform. We estimate these one-time
conversion costs will impact the 3rd quarter by
approximately $450,000 and the
4th quarter by approximately $50,000.
Income Tax Expense
Income tax expense was $1.2
million for the quarter ended June
30, 2022 (effective tax rate of 19.6%), compared to
$1.0 million for the prior quarter
(effective tax rate of 18.5%) and $835,000 for the quarter ended June 30, 2021 (effective tax rate of 19.3%).
Loans and Loans Held For Sale
Net loans and leases totaled $1.4
billion at June 30, 2022 and
increased $96.9 million, or 7.6%,
from the prior quarter and increased $164.1
million, or 13.5%, from December
31, 2021. The increase in net loans during the quarter
was primarily due to a $37.0 million
increase in commercial loan balances, a $31.6 million increase in single-family
residential loan balances, a $28.7
million increase in construction loan balances, a
$3.9 million increase in multi-family
loan balances, and a $2.6 million
increase in home equity lines of credit, partially offset by a
$7.0 decrease in commercial real
estate loan balances. The increases in the aforementioned
loan balances were related to increased sales activity and new
relationships.
The increase in net loans from December
31, 2021 was primarily due to a $63.0
million increase in commercial loan balances, a $61.2 million increase in single-family
residential loan balances, a $40.5
million increase in construction loan balances, a
$2.8 million increase in home equity
lines of credit, and a $1.2 million
increase in multi-family loan balances, partially offset by a
$4.7 decrease in commercial real
estate loan balances. The increases in the aforementioned
loan balances were related to increased sales activity and new
relationships.
The following table presents the recorded investment in loans
and leases for certain non-owner-occupied loan types ($ in
thousands).
|
|
|
|
|
|
|
June 30,
2022
|
|
March 31,
2022
|
Construction - 1-4
family
|
$
|
42,281
|
|
$
|
34,386
|
Construction -
Multi-family
|
|
56,071
|
|
|
57,363
|
Construction -
Non-residential
|
|
30,220
|
|
|
35,381
|
Hotel/Motel
|
|
17,023
|
|
|
17,078
|
Industrial /
Warehouse
|
|
26,362
|
|
|
27,902
|
Land/Land
Development
|
|
27,895
|
|
|
29,315
|
Medical/Healthcare/Senior Housing
|
|
3,253
|
|
|
3,297
|
Multi-family
|
|
84,580
|
|
|
60,990
|
Office
|
|
40,526
|
|
|
41,254
|
Retail
|
|
26,631
|
|
|
30,630
|
Other
|
$
|
61,089
|
|
$
|
57,186
|
Asset Quality
Nonaccrual loans were $921,000, or
0.07%, of total loans at June 30,
2022, a decrease of $85,000
from nonaccrual loans at March 31,
2022 and a decrease of $76,000
from nonaccrual loans at December 31,
2021. Loans past due more than 30 days totaled $716,000 at June 30,
2022 compared to $946,000 at
March 31, 2022 and $3.6 million at December
31, 2021.
The allowance for loan and lease losses totaled $15.5 million at June 30,
2022 compared to $15.5 million
at March 31, 2022 and December 31, 2021. The ratio of the ALLL to
total loans was 1.11% at June 30,
2022 compared to 1.20% at March 31,
2022 and 1.26% at December 31,
2020.
There was no provision for loan and lease losses expense for the
quarters ended June 30, 2022 and
March 31, 2022. There was
negative provision expense of $1.6
million during the quarter ended June
30, 2021. Net recoveries for the quarter ended
June 30, 2022 totaled $12,000 compared to net recoveries of
$12,000 for the prior quarter and net
recoveries of $9,000 for the quarter
ended June 30, 2021.
Deposits
Deposits totaled $1.4 billion at
June 30, 2022, an increase of
$78.7 million, or 6.1%, when compared
to $1.3 billion at March 31, 2022, and an increase of $131.1 million, or 10.5%, when compared to
$1.2 billion at December 31, 2021. The increase when
compared to the prior quarter end is primarily due to a
$67.7 million increase in money
market account balances and a $32.0
million increase in certificate of deposit account balances,
partially offset by a $20.3 million
decrease in checking account balances. The increase when
compared to December 31, 2021 is
primarily due to a $138.2 million
increase in money market account balances and a $45.6 million increase in certificate of deposit
account balances, partially offset by a $51.9 million decrease in checking account
balances. Noninterest-bearing deposit accounts decreased
$9.3 million to $244.5 million from $253.8
million at March 31, 2022, and
decreased $40.4 million from
$284.9 million at December 31, 2021.
Borrowings
FHLB advances and other debt totaled $75.6 million at June 30,
2022, a decrease of $7.6
million when compared to $83.2
million at March 31, 2022 and
a decrease of $14.1 million when
compared to $89.7 million at
December 31, 2021. The decrease when
compared to the prior quarter was due to net reductions of
$3.7 million on the Company's line of
credit with a third party financial institution and repayments of
$3.5 million in FHLB advances.
The decrease when compared to December 31,
2021 was due to net reductions of $3.7 million on the Company's line of credit with
a third party financial institution and repayments of $10.0 million in FHLB advances.
Capital
Stockholders' equity totaled $132.7
million at June 30, 2022, an
increase of $4.4 million, or 3.4%,
from $128.3 million at March 31, 2022. Stockholders' equity
increased $7.4 million, or 5.9%, from
$125.3 million at December 31, 2021. The increase in total
stockholders' equity during the three months ended June 30, 2022 was primarily attributed to net
income, partially offset by a $217,000 other comprehensive loss and share
repurchases of $257,000. The
increase in total stockholders' equity during the six months ended
June 30, 2022 was primarily
attributed to net income, partially offset by a $1.3 million other comprehensive loss and share
repurchases of $588,000. The
other comprehensive loss was the result of the mark-to-market
adjustment of our investment portfolio.
During the second quarter of 2022, CFBank paid a dividend of
$5 million to the Holding
Company. The proceeds of this dividend were used to pay down
the Holding Company line of credit, resulting in interest
savings. At June 30, 2022, the
Company has $14.4 million available
on its Holding Company line of credit, which could be utilized to
provide additional capital to the bank.
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 Four (4) Major Metro Markets: Columbus, Cleveland, and Cincinnati, 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 of nearly 25%.
CFBank focuses on serving the financial needs of closely held
businesses and entrepreneurs, by providing 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.
CFBank ranked #7 on American Banker's listing of Top 200
Publicly Traded Community Banks based on 3-year average return on
equity as of December 31, 2021 and
has been recognized as a Small Cap All-Star performer by
Piper Sandler in 2021, 2020, and
2019. CFBank is the only Ohio-based bank and one of only four banks in
the country that have achieved this award for the past three
consecutive years (2019, 2020 and 2021). In addition, CFBank was
ranked #4 in Performance and #2 in Growth Strategy by Bank Director
magazine based on 2020 performance and growth.
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 CF
Bankshares Inc. 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,
impacts from the ongoing COVID-19 pandemic on local, national and
global economic conditions in general and on our industry and
business in particular, including adverse impacts on our customer's
operations, financial condition and ability to repay loans, changes
in interest rates or disruptions in the mortgage market, and the
effects of various governmental responses to the pandemic,
including stimulus packages and programs, and those additional
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, 2021,
as supplemented by the risk factors identified in "Item 1A. Risk
Factors" of Part II of our Quarterly Reports on Form 10-Q filed
with the SEC for the quarter ended March 31,
2022.
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.
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Statements of Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in thousands,
except share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited)
|
Three months
ended
|
|
|
|
Six months
ended
|
|
|
|
June
30,
|
|
|
|
June
30,
|
|
|
|
2022
|
|
2021
|
|
%
change
|
|
2022
|
|
2021
|
|
%
change
|
Total interest
income
|
$
|
14,705
|
|
$
|
13,661
|
|
8 %
|
|
$
|
27,857
|
|
$
|
26,518
|
|
5 %
|
Total interest
expense
|
|
3,160
|
|
|
2,621
|
|
21 %
|
|
|
5,538
|
|
|
5,861
|
|
-6 %
|
Net interest
income
|
|
11,545
|
|
|
11,040
|
|
5 %
|
|
|
22,319
|
|
|
20,657
|
|
8 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for loan and
lease losses
|
|
-
|
|
|
(1,600)
|
|
n/m
|
|
|
-
|
|
|
(1,600)
|
|
n/m
|
Net interest income
after provision for loan and lease losses
|
|
11,545
|
|
|
12,640
|
|
-9 %
|
|
|
22,319
|
|
|
22,257
|
|
0 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service
charges on deposit accounts
|
|
289
|
|
|
206
|
|
40 %
|
|
|
555
|
|
|
399
|
|
39 %
|
Net gain
on sales of residential mortgage loans
|
|
121
|
|
|
(744)
|
|
-116 %
|
|
|
678
|
|
|
5,616
|
|
-88 %
|
Net gain
on sale of SBA loans
|
|
143
|
|
|
1,159
|
|
-88 %
|
|
|
143
|
|
|
1,159
|
|
-88 %
|
Swap fee
income
|
|
5
|
|
|
-
|
|
n/m
|
|
|
18
|
|
|
182
|
|
-90 %
|
Gain on
redemption of life insurance
|
|
-
|
|
|
3
|
|
n/m
|
|
|
-
|
|
|
383
|
|
n/m
|
Other
|
|
250
|
|
|
327
|
|
-24 %
|
|
|
460
|
|
|
442
|
|
4 %
|
Noninterest
income
|
|
808
|
|
|
951
|
|
-15 %
|
|
|
1,854
|
|
|
8,181
|
|
-77 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries
and employee benefits
|
|
3,578
|
|
|
4,551
|
|
-21 %
|
|
|
7,199
|
|
|
9,160
|
|
-21 %
|
Occupancy
and equipment
|
|
312
|
|
|
259
|
|
20 %
|
|
|
631
|
|
|
581
|
|
9 %
|
Data
processing
|
|
529
|
|
|
524
|
|
1 %
|
|
|
1,049
|
|
|
1,060
|
|
-1 %
|
Franchise
and other taxes
|
|
338
|
|
|
243
|
|
39 %
|
|
|
661
|
|
|
482
|
|
37 %
|
Professional fees
|
|
645
|
|
|
1,381
|
|
-53 %
|
|
|
1,252
|
|
|
2,596
|
|
-52 %
|
Director
fees
|
|
153
|
|
|
158
|
|
-3 %
|
|
|
294
|
|
|
310
|
|
-5 %
|
Postage,
printing, and supplies
|
|
38
|
|
|
47
|
|
-19 %
|
|
|
81
|
|
|
86
|
|
-6 %
|
Advertising and marketing
|
|
134
|
|
|
1,283
|
|
-90 %
|
|
|
179
|
|
|
2,527
|
|
-93 %
|
Telephone
|
|
61
|
|
|
67
|
|
-9 %
|
|
|
114
|
|
|
126
|
|
-10 %
|
Loan
expenses
|
|
106
|
|
|
31
|
|
242 %
|
|
|
206
|
|
|
88
|
|
134 %
|
Depreciation
|
|
126
|
|
|
106
|
|
19 %
|
|
|
241
|
|
|
203
|
|
19 %
|
FDIC
premiums
|
|
227
|
|
|
380
|
|
-40 %
|
|
|
378
|
|
|
619
|
|
-39 %
|
Regulatory
assessment
|
|
65
|
|
|
65
|
|
0 %
|
|
|
131
|
|
|
130
|
|
1 %
|
Other
insurance
|
|
46
|
|
|
40
|
|
15 %
|
|
|
90
|
|
|
68
|
|
32 %
|
Other
|
|
114
|
|
|
132
|
|
-14 %
|
|
|
243
|
|
|
200
|
|
22 %
|
Noninterest
expense
|
|
6,472
|
|
|
9,267
|
|
-30 %
|
|
|
12,749
|
|
|
18,236
|
|
-30 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
5,881
|
|
|
4,324
|
|
36 %
|
|
|
11,424
|
|
|
12,202
|
|
-6 %
|
Income tax
expense
|
|
1,155
|
|
|
835
|
|
38 %
|
|
|
2,180
|
|
|
2,292
|
|
-5 %
|
Net Income
|
$
|
4,726
|
|
$
|
3,489
|
|
35 %
|
|
$
|
9,244
|
|
$
|
9,910
|
|
-7 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
common share
|
$
|
0.74
|
|
$
|
0.53
|
|
|
|
$
|
1.44
|
|
$
|
1.52
|
|
|
Diluted earnings per
common share
|
$
|
0.72
|
|
$
|
0.52
|
|
|
|
$
|
1.41
|
|
$
|
1.48
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average common shares
outstanding - basic
|
|
6,413,884
|
|
|
6,536,422
|
|
|
|
|
6,415,871
|
|
|
6,537,083
|
|
|
Average common shares
outstanding - diluted
|
|
6,552,763
|
|
|
6,689,253
|
|
|
|
|
6,550,620
|
|
|
6,679,976
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
n/m - not
meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Statements of Financial Condition
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in
thousands)
|
Jun
30,
|
|
Mar
31,
|
|
Dec
31,
|
|
Sept
30,
|
|
Jun
30,
|
|
(unaudited)
|
2022
|
|
2022
|
|
2021
|
|
2021
|
|
2021
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
154,850
|
|
$
|
168,290
|
|
$
|
166,591
|
|
$
|
68,161
|
|
$
|
134,321
|
|
Interest-bearing
deposits in other financial institutions
|
|
100
|
|
|
100
|
|
|
100
|
|
|
100
|
|
|
100
|
|
Securities available
for sale
|
|
12,220
|
|
|
13,004
|
|
|
16,347
|
|
|
17,128
|
|
|
17,661
|
|
Equity
Securities
|
|
5,000
|
|
|
5,000
|
|
|
5,000
|
|
|
5,000
|
|
|
5,000
|
|
Loans held for
sale
|
|
-
|
|
|
8,470
|
|
|
27,988
|
|
|
77,946
|
|
|
254,327
|
|
Loans and
leases
|
|
1,393,759
|
|
|
1,296,836
|
|
|
1,229,657
|
|
|
1,139,199
|
|
|
1,016,972
|
|
Less allowance
for loan and lease losses
|
|
(15,532)
|
|
|
(15,520)
|
|
|
(15,508)
|
|
|
(15,487)
|
|
|
(15,495)
|
|
Loans and leases,
net
|
|
1,378,227
|
|
|
1,281,316
|
|
|
1,214,149
|
|
|
1,123,712
|
|
|
1,001,477
|
|
FHLB and FRB
stock
|
|
7,332
|
|
|
7,326
|
|
|
7,315
|
|
|
6,475
|
|
|
6,164
|
|
Premises and equipment,
net
|
|
6,110
|
|
|
6,032
|
|
|
5,869
|
|
|
3,944
|
|
|
3,765
|
|
Other assets held for
sale
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
29,308
|
|
Operating lease right
of use assets
|
|
1,638
|
|
|
1,782
|
|
|
1,925
|
|
|
1,462
|
|
|
1,584
|
|
Bank owned life
insurance
|
|
26,038
|
|
|
25,889
|
|
|
25,743
|
|
|
25,582
|
|
|
25,439
|
|
Accrued interest
receivable and other assets
|
|
27,962
|
|
|
26,986
|
|
|
24,562
|
|
|
25,446
|
|
|
28,635
|
|
Total assets
|
$
|
1,619,477
|
|
$
|
1,544,195
|
|
$
|
1,495,589
|
|
$
|
1,354,956
|
|
$
|
1,507,781
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
bearing
|
$
|
244,484
|
|
$
|
253,778
|
|
$
|
284,935
|
|
$
|
243,153
|
|
$
|
249,557
|
|
Interest bearing
|
|
1,133,005
|
|
|
1,045,008
|
|
|
961,417
|
|
|
913,637
|
|
|
922,312
|
|
Total deposits
|
|
1,377,489
|
|
|
1,298,786
|
|
|
1,246,352
|
|
|
1,156,790
|
|
|
1,171,869
|
|
FHLB advances and other
debt
|
|
75,594
|
|
|
83,235
|
|
|
89,727
|
|
|
41,218
|
|
|
74,290
|
|
Advances by borrowers
for taxes and insurance
|
|
1,879
|
|
|
2,078
|
|
|
2,752
|
|
|
1,756
|
|
|
1,412
|
|
Operating lease
liabilities
|
|
1,736
|
|
|
1,889
|
|
|
2,032
|
|
|
1,578
|
|
|
1,709
|
|
Other liabilities held
for sale
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
107,229
|
|
Accrued interest
payable and other liabilities
|
|
15,185
|
|
|
14,972
|
|
|
14,513
|
|
|
15,571
|
|
|
16,549
|
|
Subordinated
debentures
|
|
14,903
|
|
|
14,893
|
|
|
14,883
|
|
|
14,874
|
|
|
14,864
|
|
Total liabilities
|
|
1,486,786
|
|
|
1,415,853
|
|
|
1,370,259
|
|
|
1,231,787
|
|
|
1,387,922
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity
|
|
132,691
|
|
|
128,342
|
|
|
125,330
|
|
|
123,169
|
|
|
119,859
|
|
Total liabilities and
stockholders' equity
|
$
|
1,619,477
|
|
$
|
1,544,195
|
|
$
|
1,495,589
|
|
$
|
1,354,956
|
|
$
|
1,507,781
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Balance
Sheet and Yield Analysis
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For Three Months
Ended
|
|
June 30,
2022
|
|
March 31,
2022
|
|
June 30,
2021
|
|
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)
|
$
|
17,744
|
|
$
|
221
|
|
|
4.58 %
|
|
$
|
20,309
|
|
$
|
224
|
|
|
4.36 %
|
|
$
|
18,310
|
|
$
|
166
|
|
|
3.64 %
|
Loans and leases and
loans held for sale (3)
|
|
1,327,636
|
|
|
14,042
|
|
|
4.23 %
|
|
|
1,262,051
|
|
|
12,828
|
|
|
4.07 %
|
|
|
1,379,104
|
|
|
13,414
|
|
|
3.89 %
|
Other earning
assets
|
|
162,912
|
|
|
364
|
|
|
0.89 %
|
|
|
89,004
|
|
|
38
|
|
|
0.17 %
|
|
|
92,589
|
|
|
24
|
|
|
0.10 %
|
FHLB and FRB
stock
|
|
7,329
|
|
|
78
|
|
|
4.26 %
|
|
|
7,319
|
|
|
62
|
|
|
3.39 %
|
|
|
6,164
|
|
|
57
|
|
|
3.70 %
|
Total interest-earning
assets
|
|
1,515,621
|
|
|
14,705
|
|
|
3.88 %
|
|
|
1,378,683
|
|
|
13,152
|
|
|
3.82 %
|
|
|
1,496,167
|
|
|
13,661
|
|
|
3.65 %
|
Noninterest-earning
assets
|
|
81,305
|
|
|
|
|
|
|
|
|
77,320
|
|
|
|
|
|
|
|
|
80,786
|
|
|
|
|
|
|
Total
assets
|
$
|
1,596,926
|
|
|
|
|
|
|
|
$
|
1,456,003
|
|
|
|
|
|
|
|
$
|
1,576,953
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
$
|
1,108,079
|
|
|
2,501
|
|
|
0.90 %
|
|
$
|
956,568
|
|
|
1,684
|
|
|
0.70 %
|
|
$
|
1,084,719
|
|
|
2,108
|
|
|
0.78 %
|
FHLB advances and other
borrowings
|
|
92,612
|
|
|
659
|
|
|
2.85 %
|
|
|
102,860
|
|
|
694
|
|
|
2.70 %
|
|
|
125,046
|
|
|
513
|
|
|
1.64 %
|
Total interest-bearing
liabilities
|
|
1,200,691
|
|
|
3,160
|
|
|
1.05 %
|
|
|
1,059,428
|
|
|
2,378
|
|
|
0.90 %
|
|
|
1,209,765
|
|
|
2,621
|
|
|
0.87 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
liabilities
|
|
266,812
|
|
|
|
|
|
|
|
|
270,376
|
|
|
|
|
|
|
|
|
251,071
|
|
|
|
|
|
|
Total
liabilities
|
|
1,467,503
|
|
|
|
|
|
|
|
|
1,329,804
|
|
|
|
|
|
|
|
|
1,460,836
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
129,423
|
|
|
|
|
|
|
|
|
126,199
|
|
|
|
|
|
|
|
|
116,117
|
|
|
|
|
|
|
Total liabilities and
equity
|
$
|
1,596,926
|
|
|
|
|
|
|
|
$
|
1,456,003
|
|
|
|
|
|
|
|
$
|
1,576,953
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest-earning
assets
|
$
|
314,930
|
|
|
|
|
|
|
|
$
|
319,255
|
|
|
|
|
|
|
|
$
|
286,402
|
|
|
|
|
|
|
Net interest
income/interest rate spread
|
|
|
|
$
|
11,545
|
|
|
2.83 %
|
|
|
|
|
$
|
10,774
|
|
|
2.92 %
|
|
|
|
|
$
|
11,040
|
|
|
2.78 %
|
Net interest
margin
|
|
|
|
|
|
|
|
3.04 %
|
|
|
|
|
|
|
|
|
3.13 %
|
|
|
|
|
|
|
|
|
2.95 %
|
Average
interest-earning assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
to average
interest-bearing liabilities
|
|
126.23 %
|
|
|
|
|
|
|
|
|
130.13 %
|
|
|
|
|
|
|
|
|
123.67 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 ALLL and
includes nonperforming loans.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Financial Highlights
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At or for the three
months ended
|
|
At or for the six
months ended
|
($ in thousands
except per share data)
|
|
Jun
30,
|
|
Mar
31,
|
|
Dec
31,
|
|
Sept
30,
|
|
Jun
30,
|
|
|
June
30,
|
(unaudited)
|
|
2022
|
|
2022
|
|
2021
|
|
2021
|
|
2021
|
|
|
2022
|
|
|
2021
|
Earnings and
Dividends
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$
|
11,545
|
|
$
|
10,774
|
|
$
|
10,969
|
|
$
|
10,413
|
|
$
|
11,040
|
|
$
|
22,319
|
|
$
|
20,657
|
Provision for loan and
lease losses
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
(1,600)
|
|
$
|
-
|
|
$
|
(1,600)
|
Noninterest
income
|
|
$
|
808
|
|
$
|
1,046
|
|
$
|
1,382
|
|
$
|
2,077
|
|
$
|
951
|
|
$
|
1,854
|
|
$
|
8,181
|
Noninterest
expense
|
|
$
|
6,472
|
|
$
|
6,277
|
|
$
|
6,796
|
|
$
|
7,429
|
|
$
|
9,267
|
|
$
|
12,749
|
|
$
|
18,236
|
Net Income
|
|
$
|
4,726
|
|
$
|
4,518
|
|
$
|
4,467
|
|
$
|
4,076
|
|
$
|
3,489
|
|
$
|
9,244
|
|
$
|
9,910
|
Basic earnings per
common share
|
|
$
|
0.74
|
|
$
|
0.70
|
|
$
|
0.69
|
|
$
|
0.63
|
|
$
|
0.53
|
|
$
|
1.44
|
|
$
|
1.52
|
Diluted earnings per
common share
|
|
$
|
0.72
|
|
$
|
0.69
|
|
$
|
0.68
|
|
$
|
0.61
|
|
$
|
0.52
|
|
$
|
1.41
|
|
$
|
1.48
|
Dividends declared per
share
|
|
$
|
0.04
|
|
$
|
0.04
|
|
$
|
0.04
|
|
$
|
0.03
|
|
$
|
0.03
|
|
$
|
0.08
|
|
$
|
0.06
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance Ratios
(annualized)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets
|
|
|
1.18 %
|
|
|
1.24 %
|
|
|
1.29 %
|
|
|
1.18 %
|
|
|
0.88 %
|
|
|
1.21 %
|
|
|
1.29 %
|
Return on average
equity
|
|
|
14.61 %
|
|
|
14.32 %
|
|
|
14.50 %
|
|
|
13.43 %
|
|
|
12.02 %
|
|
|
14.47 %
|
|
|
17.30 %
|
Average yield on
interest-earning assets
|
|
|
3.88 %
|
|
|
3.82 %
|
|
|
4.02 %
|
|
|
3.92 %
|
|
|
3.65 %
|
|
|
3.85 %
|
|
|
3.63 %
|
Average rate paid on
interest-bearing liabilities
|
|
|
1.05 %
|
|
|
0.90 %
|
|
|
0.88 %
|
|
|
0.93 %
|
|
|
0.87 %
|
|
|
0.98 %
|
|
|
0.98 %
|
Average interest rate
spread
|
|
|
2.83 %
|
|
|
2.92 %
|
|
|
3.14 %
|
|
|
2.99 %
|
|
|
2.78 %
|
|
|
2.87 %
|
|
|
2.65 %
|
Net interest margin,
fully taxable equivalent
|
|
|
3.04 %
|
|
|
3.13 %
|
|
|
3.36 %
|
|
|
3.21 %
|
|
|
2.95 %
|
|
|
3.08 %
|
|
|
2.83 %
|
Efficiency
ratio
|
|
|
52.39 %
|
|
|
53.10 %
|
|
|
55.02 %
|
|
|
59.48 %
|
|
|
77.28 %
|
|
|
52.74 %
|
|
|
63.24 %
|
Noninterest expense to
average assets
|
|
|
1.62 %
|
|
|
1.72 %
|
|
|
1.97 %
|
|
|
2.15 %
|
|
|
2.35 %
|
|
|
1.67 %
|
|
|
2.36 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 capital leverage
ratio (1)
|
|
|
10.09 %
|
|
|
11.06 %
|
|
|
11.29 %
|
|
|
11.04 %
|
|
|
9.72 %
|
|
|
10.09 %
|
|
|
9.72 %
|
Total risk-based
capital ratio (1)
|
|
|
13.33 %
|
|
|
14.01 %
|
|
|
14.02 %
|
|
|
14.22 %
|
|
|
14.10 %
|
|
|
13.33 %
|
|
|
14.10 %
|
Tier 1 risk-based
capital ratio (1)
|
|
|
12.13 %
|
|
|
12.76 %
|
|
|
12.77 %
|
|
|
12.97 %
|
|
|
12.85 %
|
|
|
12.13 %
|
|
|
12.85 %
|
Common equity tier 1
capital to risk weighted assets (1)
|
|
|
12.13 %
|
|
|
12.76 %
|
|
|
12.77 %
|
|
|
12.97 %
|
|
|
12.85 %
|
|
|
12.13 %
|
|
|
12.85 %
|
Equity to total assets
at end of period
|
|
|
8.19 %
|
|
|
8.31 %
|
|
|
8.38 %
|
|
|
9.09 %
|
|
|
7.95 %
|
|
|
8.19 %
|
|
|
7.95 %
|
Book value per common
share
|
|
$
|
20.25
|
|
$
|
19.70
|
|
$
|
19.28
|
|
$
|
18.69
|
|
$
|
18.07
|
|
$
|
20.25
|
|
$
|
18.07
|
Tangible book value per
common share
|
|
$
|
20.25
|
|
$
|
19.70
|
|
$
|
19.28
|
|
$
|
18.69
|
|
$
|
18.07
|
|
$
|
20.25
|
|
$
|
18.07
|
Period-end market value
per common share
|
|
$
|
21.00
|
|
$
|
22.30
|
|
$
|
20.53
|
|
$
|
20.45
|
|
$
|
19.48
|
|
$
|
21.00
|
|
$
|
19.48
|
Period-end common
shares outstanding
|
|
|
6,552,020
|
|
|
6,515,927
|
|
|
6,500,248
|
|
|
6,588,343
|
|
|
6,631,589
|
|
|
6,552,020
|
|
|
6,631,589
|
Average basic common
shares outstanding
|
|
|
6,413,884
|
|
|
6,417,881
|
|
|
6,448,896
|
|
|
6,510,504
|
|
|
6,536,422
|
|
|
6,415,871
|
|
|
6,537,083
|
Average diluted common
shares outstanding
|
|
|
6,552,763
|
|
|
6,548,380
|
|
|
6,585,511
|
|
|
6,657,250
|
|
|
6,689,253
|
|
|
6,550,620
|
|
|
6,679,976
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset
Quality
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming
loans
|
|
$
|
921
|
|
$
|
1,006
|
|
$
|
997
|
|
$
|
1,011
|
|
$
|
327
|
|
$
|
921
|
|
$
|
327
|
Nonperforming loans to
total loans
|
|
|
0.07 %
|
|
|
0.08 %
|
|
|
0.08 %
|
|
|
0.09 %
|
|
|
0.03 %
|
|
|
0.07 %
|
|
|
0.03 %
|
Nonperforming assets to
total assets
|
|
|
0.06 %
|
|
|
0.07 %
|
|
|
0.07 %
|
|
|
0.07 %
|
|
|
0.02 %
|
|
|
0.06 %
|
|
|
0.02 %
|
Allowance for loan and
lease losses to total loans
|
|
|
1.11 %
|
|
|
1.20 %
|
|
|
1.26 %
|
|
|
1.36 %
|
|
|
1.52 %
|
|
|
1.11 %
|
|
|
1.52 %
|
Allowance for loan and
lease losses to nonperforming loans
|
|
|
1686.43 %
|
|
|
1542.74 %
|
|
|
1555.47 %
|
|
|
1531.85 %
|
|
|
4738.53 %
|
|
|
1686.43 %
|
|
|
4738.53 %
|
Net charge-offs
(recoveries)
|
|
$
|
(12)
|
|
$
|
(12)
|
|
$
|
(21)
|
|
$
|
8
|
|
$
|
(9)
|
|
$
|
(24)
|
|
$
|
(73)
|
Annualized net
charge-offs (recoveries) to average loans
|
|
|
0.00 %
|
|
|
0.00 %
|
|
|
(0.01 %)
|
|
|
0.00 %
|
|
|
0.00 %
|
|
|
0.00 %
|
|
|
(0.01 %)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
Balances
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
$
|
1,340,330
|
|
$
|
1,254,639
|
|
$
|
1,173,853
|
|
$
|
1,065,069
|
|
$
|
1,023,152
|
|
$
|
1,297,484
|
|
$
|
977,237
|
Assets
|
|
$
|
1,596,926
|
|
$
|
1,456,003
|
|
$
|
1,381,158
|
|
$
|
1,379,249
|
|
$
|
1,576,953
|
|
$
|
1,526,465
|
|
$
|
1,542,158
|
Stockholders'
equity
|
|
$
|
129,423
|
|
$
|
126,199
|
|
$
|
123,232
|
|
$
|
121,394
|
|
$
|
116,117
|
|
$
|
127,811
|
|
$
|
114,548
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Regulatory capital
ratios of CFBank
|
View original
content:https://www.prnewswire.com/news-releases/cf-bankshares-inc-parent-of-cfbank-na-reports-net-earnings-of-4-7-million-or-0-72-per-share-for-the-2nd-quarter-of-2022--301598414.html
SOURCE CF Bankshares Inc.