COLUMBUS, Ohio, May 5, 2022
/PRNewswire/ -- CF Bankshares Inc. (NASDAQ: CFBK) (the "Company"),
the parent of CFBank, today announced financial results for first
quarter ended March 31, 2022.
Q1 2022 Highlights
- Net Income of $4.5 million
and Earnings Per Share (EPS) of $0.69 for Q1.
- Return on Average Assets (ROA) and Return on Average Equity
(ROE) were 1.24% and 14.32%, respectively.
- Book value per share increased to $19.70 at March 31,
2022.
- Loans grew by $67 million,
or 5.5%, during the first quarter of 2022. Net loans and leases
totaled $1.3 billion at March 31, 2022.
- Deposits increased by $52
million, or 4.2%, during the quarter.
- Improved Efficiency Ratio of 53.10% for Q1 2022 reflects
ongoing operating efficiencies being achieved through the
repositioning of our residential mortgage lending business to a
downsized and traditional Retail Originations model. As a result,
noninterest expense decreased $519,000 when compared to Q4 2021 and decreased
$2.7 million when compared to Q1
2021.
- Credit quality remains strong with loans more than 30 days past
due at 0.07% of total loans at March
31, 2022.
Recent Developments
- On April 4, 2022, the Company's
Board of Directors declared a Cash Dividend of $0.04 per share payable to shareholders on
April 25, 2022.
- Subsequent to quarter end, an additional substandard loan paid
off in full, further reducing the criticized and classified loan
totals to approximately $3.4 million,
down from $4.1 million at
March 31, 2022 and $6.1 million at December
31, 2021.
- In March 2022, CFBank opened a
full-service branch on Polaris Parkway in Columbus.
CEO and Board Chair Commentary
Timothy T. O'Dell, President and
CEO, commented, "Earnings for Q1 remain level with Q4 earnings with
EPS of $0.69 and $0.68 respectively and Net Interest Income
remained consistent despite some large early payoff fees received
during Q4 2021. During the first quarter, we continued with
our nearly 10-year long track record of consistently achieving
quality growth of both loans and deposits. Commercial loans
grew by over 5% during Q1 net of elevated loan payoffs, mostly CRE
projects refinanced by permanent lenders. Our loan and business
pipelines remain strong.
We are investing in expanding our Commercial & Retail Teams
as well as our footprint and market presence in our Regional metro
markets. Indianapolis, our
newest regional market is gaining traction. We believe the
Indianapolis market in particular
has good potential for generating deposit relationships with
not-for-profit organizations.
We believe that our bank is well equipped to capitalize on
quality business and growth opportunities going forward.
Additionally we believe that we are well positioned to operate
successfully in a rising interest rate environment since
approximately $450 million in loan
balances are variable rate and will reprice once existing floor
interest rates have been met. CFBank possesses both strong
Capital, and excellent Credit Quality, coupled with a deepened and
strengthened Team of experienced Commercial Bankers."
Robert E. Hoeweler, Chairman of
the Board, added: "Our experienced team has demonstrated success
adapting to the challenges and seizing upon the opportunities of
changing economic backdrops. The team is well positioned to
continue to serve our existing clientele, and we have products to
attract and bring new customers to CFBank. We continue to be
forward looking, identifying new opportunities as they
develop."
We are just Revving Up!
Overview of Results
Net income for the three months ended March 31, 2022 totaled $4.5 million (or $0.69 per diluted common share) compared to net
income of $4.5 million (or
$0.68 per diluted common share) for
the three months ended December 31,
2021 and net income of $6.4
million (or $0.96 per diluted
common share) for the three months ended March 31, 2021.
The decrease in net income compared to March 31, 2021 was primarily the result of
decreased margins and 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.
As a result of declining mortgage margins, we have 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 $10.8
million for the quarter ended March
31, 2022 and decreased $195,000, or 1.8%, compared to $11.0 million in the prior quarter, and increased
$1.2 million, or 12.0%, compared to
$9.6 million in the first quarter of
2021. The decrease in net interest income compared to the
prior quarter was primarily due to a $220,000, or 10.2%, increase in interest expense,
partially offset by a $25,000, or
0.2%, increase in interest income. The increase in interest
expense was attributed to a $75.2
million, or 7.6%, increase in average interest-bearing
liabilities coupled with a 2bps increase in the average cost of
funds on interest-bearing liabilities. The increase in
interest income was primarily attributed to a $72.9 million, or 5.6%, increase in average
interest-earning assets outstanding, partially offset by a 20bps
decrease in average yield on interest-earning assets. The net
interest margin of 3.13% for the quarter ended March 31, 2022 decreased 23bps compared to the
net interest margin of 3.36% for the prior quarter. Our Q4
2021 margin was positively impacted by higher prepayment penalties
received on early payoffs coupled with two extra days in the
quarter.
The increase in net interest income compared to the first
quarter of 2021 was primarily due to an $862,000, or 26.6%, decrease in interest expense
and a $295,000, or 2.3%, increase in
interest income. The decrease in interest expense was
attributed to a 20bps decrease in the average cost of funds on
interest-bearing liabilities, coupled with a $113.8 million, or 9.7%, decrease in average
interest-bearing liabilities. The increase in interest income
was primarily attributed to a 22bps increase in average yield on
interest-earning assets, partially offset by a $48.9 million, or 3.4%, decrease in average
interest-earning assets outstanding. The net interest margin
of 3.13% for the quarter ended March 31,
2022 increased 44bps compared to the net interest margin of
2.69% for the first quarter of 2021.
Noninterest Income
Noninterest income for the quarter ended March 31, 2022 totaled $1.0 million and decreased $336,000, or 24.3%, compared to $1.4 million for the prior quarter. The
decrease was primarily due to a $285,000 decrease in the net gain on sales of SBA
loans.
Noninterest income for the quarter ended March 31, 2022 decreased $6.2 million, or 85.5%, compared to $7.2 million for the quarter ended March 31, 2021. The decrease was primarily
due to a $5.8 million decrease in net
gain on sale of residential mortgage loans. The decrease in
the net gain on sale of residential mortgage loans was the result
of the Company's decision to strategically scale down its
residential mortgage lending business in response to the shift in
the mortgage industry.
The following table represents the notional amount of loans sold
during the three months ended March 31,
2022, December 31, 2021, and
March 31, 2021 (in thousands).
|
|
|
|
|
|
|
|
|
|
Three Months
ended
|
|
March 31,
2022
|
|
December 31,
2021
|
|
March 31,
2021
|
Notional amount of
loans sold
|
$
|
85,180
|
|
$
|
130,407
|
|
$
|
756,886
|
The following table represents the revenue recognized on
mortgage activities for the three months ended March 31, 2022, December
31, 2021, and March 31, 2021
(in thousands).
|
|
|
|
|
|
|
|
|
|
Three Months
ended
|
|
March 31,
2022
|
|
December 31,
2021
|
|
March 31,
2021
|
Gain on loans
sold
|
$
|
61
|
|
$
|
1,025
|
|
$
|
11,916
|
Gain (loss) from change
in fair value of loans held-for-sale
|
|
(448)
|
|
|
(567)
|
|
|
(6,937)
|
Gain (loss) from change
in fair value of derivatives
|
|
944
|
|
|
110
|
|
|
1,381
|
|
$
|
557
|
|
$
|
568
|
|
$
|
6,360
|
Noninterest Expense
Noninterest expense for the quarter ended March 31, 2022 totaled $6.3 million and decreased $519,000, or 7.6%, compared to $6.8 million for the prior quarter. The
decrease in noninterest expense was primarily due to a $444,000 decrease in advertising and marketing
expense. The decrease in advertising and marketing expense
was the result of the decision to cease selling mortgages in the
secondary market and transition to a retail focused loan
origination model.
Noninterest expense for the quarter ended March 31, 2022 decreased $2.7 million, or 30.0%, compared to $9.0 million for the quarter ended March 31, 2021. The decrease in noninterest
expense was primarily due to a $1.2
million decrease in advertising and marketing expense, a
$988,000 decrease in salaries and
employee benefits, and a $608,000
decrease in professional fee expense. The decreases in advertising
and marketing expense, salaries and employee benefits expense, and
professional fee expense were primarily the result of the scaling
down and repositioning of our residential mortgage lending business
as previously disclosed.
Income Tax Expense
Income tax expense was $1.0
million for the quarter ended March
31, 2022 (effective tax rate of 18.5%), compared to
$1.1 million for the prior quarter
(effective tax rate of 19.6%) and $1.5
million for the quarter ended March
31, 2021 (effective tax rate of 18.5%).
Loans and Loans Held For Sale
Net loans and leases totaled $1.3
billion at March 31, 2022 and
increased $67.2 million, or 5.5%,
from $1.2 billion at December 31, 2021. The increase in net
loans during the quarter was primarily due to a $29.7 million increase in single-family
residential loan balances, a $26.1
million increase in commercial loan balances, an
$11.8 million increase in
construction loan balances, and a $2.3 increase in commercial real estate loan
balances, partially offset by a $2.7
million decrease in multi-family loan balances. The
increases in the aforementioned loan balances were related to
increased sales activity and new relationships.
The following table presents the recorded investment in loans
and leases for certain non-owner-occupied loan types ($ in
thousands).
|
|
|
|
|
|
|
March 31,
2022
|
|
December 31,
2021
|
Construction - 1-4
family
|
$
|
34,386
|
|
$
|
24,660
|
Construction -
Multi-family
|
|
57,363
|
|
|
54,165
|
Construction -
Non-residential
|
|
35,381
|
|
|
34,183
|
Hotel/Motel
|
|
17,078
|
|
|
17,118
|
Industrial /
Warehouse
|
|
27,902
|
|
|
28,133
|
Land/Land
Development
|
|
29,315
|
|
|
22,579
|
Medical/Healthcare/Senior Housing
|
|
3,297
|
|
|
5,213
|
Multi-family
|
|
60,990
|
|
|
68,591
|
Office
|
|
41,254
|
|
|
41,513
|
Retail
|
|
30,630
|
|
|
30,540
|
Other
|
$
|
57,186
|
|
$
|
58,955
|
Asset Quality
Nonaccrual loans were $1.0
million, or 0.08% of total loans at March 31, 2022, an increase of $9,000 from nonaccrual loans of $1.0 million at December
31, 2021. Loans past due more than 30 days totaled
$946,000 at March 31, 2022 compared to $3.6 million at December
31, 2021.
The allowance for loan and lease losses totaled $15.5 million at March 31,
2022 compared to $15.5 million
at December 31, 2021. The ratio
of the ALLL to total loans was 1.20% at March 31, 2022 compared to 1.26% at December 31, 2020.
The provision for loan and lease losses expense was $0 for both the quarter ended March 31, 2022 and the prior quarter ended
December 31, 2021. Net
recoveries for the quarter ended March 31,
2022 totaled $12,000 compared
to net recoveries of $21,000 for the
quarter ended December 31, 2021.
Deposits
Deposits totaled $1.3 billion at
March 31, 2022, an increase of
$52.4 million, or 4.2%, when compared
to $1.2 billion at December 31, 2021. The increase when
compared to December 31, 2021 is
primarily due to a $70.5 million
increase in money market account balances and a $13.6 million increase in certificate of deposit
account balances, partially offset by a $31.6 million decrease in checking account
balances, and a $100,000 decrease in
savings account balances. Noninterest-bearing deposit
accounts decreased $31.1 million to
$253.8 million from $284.9 million at December
31, 2021.
Borrowings
FHLB advances and other debt totaled $83.2 million at March 31,
2022, a decrease of $6.5
million when compared to $89.7
million at December 31, 2021.
The decrease was due to repayments of $6.5
million in FHLB advances.
Capital
Stockholders' equity totaled $128.3
million at March 31, 2022, an
increase of $3.0 million, or 2.4%,
from $125.3 million at December 31, 2021. The increase in total
stockholders' equity during the three months ended March 31, 2022 was primarily attributed to net
income, partially offset by a $1.0
million other comprehensive loss and share repurchases of
$331,000. The other
comprehensive loss was the result of the mark-to-market adjustment
of our investment portfolio.
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 has been recognized as among the Top 200 Publicly Traded
Community Banks by American Banker, and in addition, 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 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.
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,
|
|
|
|
2022
|
|
2021
|
|
%
change
|
Total interest
income
|
$
|
13,152
|
|
$
|
12,857
|
|
2%
|
Total interest
expense
|
|
2,378
|
|
|
3,240
|
|
-27%
|
Net interest
income
|
|
10,774
|
|
|
9,617
|
|
12%
|
|
|
|
|
|
|
|
|
Provision for loan and
lease losses
|
|
-
|
|
|
-
|
|
n/m
|
Net interest income
after provision for loan and lease losses
|
|
10,774
|
|
|
9,617
|
|
12%
|
|
|
|
|
|
|
|
|
Noninterest
income
|
|
|
|
|
|
|
|
Service
charges on deposit accounts
|
|
266
|
|
|
193
|
|
38%
|
Net gain
on sales of residential mortgage loans
|
|
557
|
|
|
6,360
|
|
-91%
|
Swap fee
income
|
|
13
|
|
|
182
|
|
-93%
|
Gain on
redemption of life insurance
|
|
-
|
|
|
380
|
|
n/m
|
Other
|
|
210
|
|
|
115
|
|
83%
|
Noninterest
income
|
|
1,046
|
|
|
7,230
|
|
-86%
|
|
|
|
|
|
|
|
|
Noninterest
expense
|
|
|
|
|
|
|
|
Salaries
and employee benefits
|
|
3,621
|
|
|
4,609
|
|
-21%
|
Occupancy
and equipment
|
|
319
|
|
|
322
|
|
-1%
|
Data
processing
|
|
520
|
|
|
536
|
|
-3%
|
Franchise
and other taxes
|
|
323
|
|
|
239
|
|
35%
|
Professional fees
|
|
607
|
|
|
1,215
|
|
-50%
|
Director
fees
|
|
141
|
|
|
152
|
|
-7%
|
Postage,
printing, and supplies
|
|
43
|
|
|
39
|
|
10%
|
Advertising and marketing
|
|
45
|
|
|
1,244
|
|
-96%
|
Telephone
|
|
53
|
|
|
59
|
|
-10%
|
Loan
expenses
|
|
100
|
|
|
57
|
|
75%
|
Depreciation
|
|
115
|
|
|
97
|
|
19%
|
FDIC
premiums
|
|
151
|
|
|
239
|
|
-37%
|
Regulatory
assessment
|
|
66
|
|
|
65
|
|
2%
|
Other
insurance
|
|
44
|
|
|
28
|
|
57%
|
Other
|
|
129
|
|
|
68
|
|
90%
|
Noninterest
expense
|
|
6,277
|
|
|
8,969
|
|
-30%
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
5,543
|
|
|
7,878
|
|
-30%
|
Income tax
expense
|
|
1,025
|
|
|
1,457
|
|
-30%
|
Net Income
|
$
|
4,518
|
|
$
|
6,421
|
|
-30%
|
|
|
|
|
|
|
|
|
Share
Data
|
|
|
|
|
|
|
|
Basic earnings per
common share
|
$
|
0.70
|
|
$
|
0.98
|
|
|
Diluted earnings per
common share
|
$
|
0.69
|
|
$
|
0.96
|
|
|
|
|
|
|
|
|
|
|
Average common shares
outstanding - basic
|
|
6,417,881
|
|
|
6,537,751
|
|
|
Average common shares
outstanding - diluted
|
|
6,548,380
|
|
|
6,670,591
|
|
|
|
|
|
|
|
|
|
|
n/m - not
meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Statements of Financial Condition
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in
thousands)
|
Mar
31,
|
|
Dec
31,
|
|
Sept
30,
|
|
Jun
30,
|
|
Mar
31,
|
|
(unaudited)
|
2022
|
|
2021
|
|
2021
|
|
2021
|
|
2021
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
168,290
|
|
$
|
166,591
|
|
$
|
68,161
|
|
$
|
134,321
|
|
$
|
125,814
|
|
Interest-bearing
deposits in other financial institutions
|
|
100
|
|
|
100
|
|
|
100
|
|
|
100
|
|
|
100
|
|
Securities available
for sale
|
|
13,004
|
|
|
16,347
|
|
|
17,128
|
|
|
17,661
|
|
|
9,738
|
|
Equity
Securities
|
|
5,000
|
|
|
5,000
|
|
|
5,000
|
|
|
5,000
|
|
|
5,000
|
|
Loans held for
sale
|
|
8,470
|
|
|
27,988
|
|
|
77,946
|
|
|
254,327
|
|
|
430,453
|
|
Loans and
leases
|
|
1,296,836
|
|
|
1,229,657
|
|
|
1,139,199
|
|
|
1,016,972
|
|
|
983,888
|
|
Less allowance
for loan and lease losses
|
|
(15,520)
|
|
|
(15,508)
|
|
|
(15,487)
|
|
|
(15,495)
|
|
|
(17,086)
|
|
Loans and leases,
net
|
|
1,281,316
|
|
|
1,214,149
|
|
|
1,123,712
|
|
|
1,001,477
|
|
|
966,802
|
|
FHLB and FRB
stock
|
|
7,326
|
|
|
7,315
|
|
|
6,475
|
|
|
6,164
|
|
|
6,164
|
|
Premises and equipment,
net
|
|
6,032
|
|
|
5,869
|
|
|
3,944
|
|
|
3,765
|
|
|
3,769
|
|
Other assets held for
sale
|
|
-
|
|
|
-
|
|
|
-
|
|
|
29,308
|
|
|
-
|
|
Operating lease right
of use assets
|
|
1,782
|
|
|
1,925
|
|
|
1,462
|
|
|
1,584
|
|
|
1,537
|
|
Bank owned life
insurance
|
|
25,889
|
|
|
25,743
|
|
|
25,582
|
|
|
25,439
|
|
|
25,302
|
|
Accrued interest
receivable and other assets
|
|
26,986
|
|
|
24,562
|
|
|
25,446
|
|
|
28,635
|
|
|
29,958
|
|
Total assets
|
$
|
1,544,195
|
|
$
|
1,495,589
|
|
$
|
1,354,956
|
|
$
|
1,507,781
|
|
$
|
1,604,637
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
bearing
|
$
|
253,778
|
|
$
|
284,935
|
|
$
|
243,153
|
|
$
|
249,557
|
|
$
|
216,935
|
|
Interest bearing
|
|
1,045,008
|
|
|
961,417
|
|
|
913,637
|
|
|
922,312
|
|
|
1,103,445
|
|
Total deposits
|
|
1,298,786
|
|
|
1,246,352
|
|
|
1,156,790
|
|
|
1,171,869
|
|
|
1,320,380
|
|
FHLB advances and other
debt
|
|
83,235
|
|
|
89,727
|
|
|
41,218
|
|
|
74,290
|
|
|
137,894
|
|
Advances by borrowers
for taxes and insurance
|
|
2,078
|
|
|
2,752
|
|
|
1,756
|
|
|
1,412
|
|
|
921
|
|
Operating lease
liabilities
|
|
1,889
|
|
|
2,032
|
|
|
1,578
|
|
|
1,709
|
|
|
1,672
|
|
Other liabilities held
for sale
|
|
-
|
|
|
-
|
|
|
-
|
|
|
107,229
|
|
|
-
|
|
Accrued interest
payable and other liabilities
|
|
14,972
|
|
|
14,513
|
|
|
15,571
|
|
|
16,549
|
|
|
12,265
|
|
Subordinated
debentures
|
|
14,893
|
|
|
14,883
|
|
|
14,874
|
|
|
14,864
|
|
|
14,854
|
|
Total liabilities
|
|
1,415,853
|
|
|
1,370,259
|
|
|
1,231,787
|
|
|
1,387,922
|
|
|
1,487,986
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity
|
|
128,342
|
|
|
125,330
|
|
|
123,169
|
|
|
119,859
|
|
|
116,651
|
|
Total liabilities and
stockholders' equity
|
$
|
1,544,195
|
|
$
|
1,495,589
|
|
$
|
1,354,956
|
|
$
|
1,507,781
|
|
$
|
1,604,637
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Balance
Sheet and Yield Analysis
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For Three Months
Ended
|
|
March 31,
2022
|
|
December 31,
2021
|
|
March 31,
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)
|
$
|
20,309
|
|
$
|
224
|
|
|
4.36%
|
|
$
|
21,768
|
|
$
|
227
|
|
|
4.18%
|
|
$
|
14,854
|
|
$
|
133
|
|
|
3.61%
|
Loans held
for sale
|
|
22,925
|
|
|
172
|
|
|
3.00%
|
|
|
47,523
|
|
|
225
|
|
|
1.89%
|
|
|
385,811
|
|
|
2,220
|
|
|
2.30%
|
Loans and
leases (3)
|
|
1,239,126
|
|
|
12,656
|
|
|
4.09%
|
|
|
1,158,355
|
|
|
12,579
|
|
|
4.34%
|
|
|
914,296
|
|
|
10,421
|
|
|
4.56%
|
Other
earning assets
|
|
89,004
|
|
|
38
|
|
|
0.17%
|
|
|
71,647
|
|
|
29
|
|
|
0.16%
|
|
|
106,657
|
|
|
28
|
|
|
0.11%
|
FHLB and
FRB stock
|
|
7,319
|
|
|
62
|
|
|
3.39%
|
|
|
6,520
|
|
|
67
|
|
|
4.11%
|
|
|
5,974
|
|
|
55
|
|
|
3.68%
|
Total interest-earning assets
|
|
1,378,683
|
|
|
13,152
|
|
|
3.82%
|
|
|
1,305,813
|
|
|
13,127
|
|
|
4.02%
|
|
|
1,427,592
|
|
|
12,857
|
|
|
3.60%
|
Noninterest-earning assets
|
|
77,320
|
|
|
|
|
|
|
|
|
75,345
|
|
|
|
|
|
|
|
|
79,770
|
|
|
|
|
|
|
Total assets
|
$
|
1,456,003
|
|
|
|
|
|
|
|
$
|
1,381,158
|
|
|
|
|
|
|
|
$
|
1,507,362
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
$
|
956,568
|
|
|
1,684
|
|
|
0.70%
|
|
$
|
924,453
|
|
|
1,632
|
|
|
0.71%
|
|
$
|
991,325
|
|
|
2,497
|
|
|
1.01%
|
FHLB
advances and other
borrowings
|
|
102,860
|
|
|
694
|
|
|
2.70%
|
|
|
59,782
|
|
|
526
|
|
|
3.52%
|
|
|
181,869
|
|
|
743
|
|
|
1.63%
|
Total interest-bearing liabilities
|
|
1,059,428
|
|
|
2,378
|
|
|
0.90%
|
|
|
984,235
|
|
|
2,158
|
|
|
0.88%
|
|
|
1,173,194
|
|
|
3,240
|
|
|
1.10%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing liabilities
|
|
270,376
|
|
|
|
|
|
|
|
|
273,691
|
|
|
|
|
|
|
|
|
221,190
|
|
|
|
|
|
|
Total liabilities
|
|
1,329,804
|
|
|
|
|
|
|
|
|
1,257,926
|
|
|
|
|
|
|
|
|
1,394,384
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
126,199
|
|
|
|
|
|
|
|
|
123,232
|
|
|
|
|
|
|
|
|
112,978
|
|
|
|
|
|
|
Total liabilities and equity
|
$
|
1,456,003
|
|
|
|
|
|
|
|
$
|
1,381,158
|
|
|
|
|
|
|
|
$
|
1,507,362
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest-earning
assets
|
$
|
319,255
|
|
|
|
|
|
|
|
$
|
321,578
|
|
|
|
|
|
|
|
$
|
254,398
|
|
|
|
|
|
|
Net interest
income/interest rate
spread
|
|
|
|
$
|
10,774
|
|
|
2.92%
|
|
|
|
|
$
|
10,969
|
|
|
3.14%
|
|
|
|
|
$
|
9,617
|
|
|
2.50%
|
Net interest
margin
|
|
|
|
|
|
|
|
3.13%
|
|
|
|
|
|
|
|
|
3.36%
|
|
|
|
|
|
|
|
|
2.69%
|
Average
interest-earning assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
to average
interest-bearing
liabilities
|
|
130.13%
|
|
|
|
|
|
|
|
|
132.67%
|
|
|
|
|
|
|
|
|
121.26%
|
|
|
|
|
|
|
|
|
(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
|
($ in thousands
except per share data)
|
|
Mar
31,
|
|
Dec
31,
|
|
Sept
30,
|
|
Jun
30,
|
|
Mar
31,
|
(unaudited)
|
|
2022
|
|
2021
|
|
2021
|
|
2021
|
|
2021
|
Earnings and
Dividends
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$
|
10,774
|
|
$
|
10,969
|
|
$
|
10,413
|
|
$
|
11,040
|
|
$
|
9,617
|
Provision for loan and
lease losses
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
(1,600)
|
|
$
|
-
|
Noninterest
income
|
|
$
|
1,046
|
|
$
|
1,382
|
|
$
|
2,077
|
|
$
|
951
|
|
$
|
7,230
|
Noninterest
expense
|
|
$
|
6,277
|
|
$
|
6,796
|
|
$
|
7,429
|
|
$
|
9,267
|
|
$
|
8,969
|
Net Income
|
|
$
|
4,518
|
|
$
|
4,467
|
|
$
|
4,076
|
|
$
|
3,489
|
|
$
|
6,421
|
Basic earnings per
common share
|
|
$
|
0.70
|
|
$
|
0.69
|
|
$
|
0.63
|
|
$
|
0.53
|
|
$
|
0.98
|
Diluted earnings per
common share
|
|
$
|
0.69
|
|
$
|
0.68
|
|
$
|
0.61
|
|
$
|
0.52
|
|
$
|
0.96
|
Dividends declared per
share
|
|
$
|
0.04
|
|
$
|
0.04
|
|
$
|
0.03
|
|
$
|
0.03
|
|
$
|
0.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance Ratios
(annualized)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets
|
|
|
1.24%
|
|
|
1.29%
|
|
|
1.18%
|
|
|
0.88%
|
|
|
1.70%
|
Return on average
equity
|
|
|
14.32%
|
|
|
14.50%
|
|
|
13.43%
|
|
|
12.02%
|
|
|
22.73%
|
Average yield on
interest-earning assets
|
|
|
3.82%
|
|
|
4.02%
|
|
|
3.92%
|
|
|
3.65%
|
|
|
3.60%
|
Average rate paid on
interest-bearing liabilities
|
|
|
0.90%
|
|
|
0.88%
|
|
|
0.93%
|
|
|
0.87%
|
|
|
1.10%
|
Average interest rate
spread
|
|
|
2.92%
|
|
|
3.14%
|
|
|
2.99%
|
|
|
2.78%
|
|
|
2.50%
|
Net interest margin,
fully taxable equivalent
|
|
|
3.13%
|
|
|
3.36%
|
|
|
3.21%
|
|
|
2.95%
|
|
|
2.69%
|
Efficiency
ratio
|
|
|
53.10%
|
|
|
55.02%
|
|
|
59.48%
|
|
|
77.28%
|
|
|
53.24%
|
Noninterest expense to
average assets
|
|
|
1.72%
|
|
|
1.97%
|
|
|
2.15%
|
|
|
2.35%
|
|
|
2.38%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 capital leverage
ratio (1)
|
|
|
11.06%
|
|
|
11.29%
|
|
|
11.04%
|
|
|
9.72%
|
|
|
9.37%
|
Total risk-based
capital ratio (1)
|
|
|
14.01%
|
|
|
14.02%
|
|
|
14.22%
|
|
|
14.10%
|
|
|
13.18%
|
Tier 1 risk-based
capital ratio (1)
|
|
|
12.76%
|
|
|
12.77%
|
|
|
12.97%
|
|
|
12.85%
|
|
|
11.92%
|
Common equity tier 1
capital to risk weighted assets (1)
|
|
|
12.76%
|
|
|
12.77%
|
|
|
12.97%
|
|
|
12.85%
|
|
|
11.92%
|
Equity to total assets
at end of period
|
|
|
8.31%
|
|
|
8.38%
|
|
|
9.09%
|
|
|
7.95%
|
|
|
7.27%
|
Book value per common
share
|
|
$
|
19.70
|
|
$
|
19.28
|
|
$
|
18.69
|
|
$
|
18.07
|
|
$
|
17.55
|
Tangible book value per
common share
|
|
$
|
19.70
|
|
$
|
19.28
|
|
$
|
18.69
|
|
$
|
18.07
|
|
$
|
17.55
|
Period-end market value
per common share
|
|
$
|
22.30
|
|
$
|
20.53
|
|
$
|
20.45
|
|
$
|
19.48
|
|
$
|
19.96
|
Period-end common
shares outstanding
|
|
|
6,515,927
|
|
|
6,500,248
|
|
|
6,588,343
|
|
|
6,631,589
|
|
|
6,645,956
|
Average basic common
shares outstanding
|
|
|
6,417,881
|
|
|
6,448,896
|
|
|
6,510,504
|
|
|
6,536,422
|
|
|
6,537,751
|
Average diluted common
shares outstanding
|
|
|
6,548,380
|
|
|
6,585,511
|
|
|
6,657,250
|
|
|
6,689,253
|
|
|
6,670,591
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset
Quality
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming
loans
|
|
$
|
1,006
|
|
$
|
997
|
|
$
|
1,011
|
|
$
|
327
|
|
$
|
641
|
Nonperforming loans to
total loans
|
|
|
0.08%
|
|
|
0.08%
|
|
|
0.09%
|
|
|
0.03%
|
|
|
0.07%
|
Nonperforming assets to
total assets
|
|
|
0.07%
|
|
|
0.07%
|
|
|
0.07%
|
|
|
0.02%
|
|
|
0.04%
|
Allowance for loan and
lease losses to total loans
|
|
|
1.20%
|
|
|
1.26%
|
|
|
1.36%
|
|
|
1.52%
|
|
|
1.74%
|
Allowance for loan and
lease losses to nonperforming loans
|
|
|
1542.74%
|
|
|
1555.47%
|
|
|
1531.85%
|
|
|
4738.53%
|
|
|
2665.52%
|
Net charge-offs
(recoveries)
|
|
$
|
(12)
|
|
$
|
(21)
|
|
$
|
8
|
|
$
|
(9)
|
|
$
|
(64)
|
Annualized net
charge-offs (recoveries) to average loans
|
|
|
0.00%
|
|
|
(0.01%)
|
|
|
0.00%
|
|
|
0.00%
|
|
|
(0.03%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
Balances
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
$
|
1,254,639
|
|
$
|
1,173,853
|
|
$
|
1,065,069
|
|
$
|
1,023,152
|
|
$
|
931,323
|
Assets
|
|
$
|
1,456,003
|
|
$
|
1,381,158
|
|
$
|
1,379,249
|
|
$
|
1,576,953
|
|
$
|
1,507,362
|
Stockholders'
equity
|
|
$
|
126,199
|
|
$
|
123,232
|
|
$
|
121,394
|
|
$
|
116,117
|
|
$
|
112,978
|
|
|
(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-4-5-million-or-0-69-per-share-for-the-1st-quarter-of-2022--301540823.html
SOURCE CF Bankshares Inc.