CF Bankshares Inc. (CFBK): history, ownership, mission, how it works & makes money

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CF Bankshares Inc. (CFBK) Information


A Brief History of CF Bankshares Inc.

CF Bankshares Inc. (CFBK) operates as a commercial bank with a focus on serving the needs of entrepreneurs and closely-held businesses. Since its recapitalization in 2012, the company has strategically positioned itself in major metro markets, including Columbus, Cleveland, Cincinnati, and Indianapolis, achieving a compound annual growth rate (CAGR) exceeding 20%.

Financial Performance Overview

As of September 30, 2024, CF Bankshares reported the following financial highlights:

Metric Q3 2024 Q2 2024 Q3 2023
Net Income ($ million) 4.2 1.7 4.0
Basic Earnings per Share ($) 0.65 0.26 0.63
Net Interest Income ($ million) 11.5 11.4 11.7
Noninterest Income ($ million) 1.6 1.2 1.3
Total Assets ($ million) 2,000.4 1,997.4 1,957.0
Deposits ($ million) 1,750.0 1,700.0 1,740.0
Stockholders' Equity ($ million) 164.0 159.6 155.4

Key Developments

In October 2024, CF Bankshares declared a cash dividend of $0.07 per share on its common stock, reflecting a commitment to returning value to shareholders. The bank has also experienced a significant increase in noninterest-bearing deposits, which grew by 18% during Q3 2024, totaling approximately $40 million.

Loan and Asset Quality

As of September 30, 2024, net loans and leases amounted to $1.7 billion, indicating a $29.4 million increase since the previous quarter. The bank's asset quality has shown some deterioration, with nonaccrual loans increasing to $14.6 million, representing 0.84% of total loans, up from $10.9 million in the prior quarter.

Loan Type September 30, 2024 ($ thousands) June 30, 2024 ($ thousands)
Multi-family 227,895 181,553
Commercial Real Estate 43,407 43,817
Single-family Residential 63,074 63,604
Construction – 1-4 family 23,046 22,877
Commercial and Industrial 7,732 8,366

Capital Ratios

The capital ratios as of September 30, 2024 were robust, with the following measures reported:

Capital Ratio Percentage
Tier 1 Capital Leverage Ratio 10.36%
Total Risk-Based Capital Ratio 13.43%
Common Equity Tier 1 Capital Ratio 12.35%

CF Bankshares has continued to adapt to the evolving interest rate environment, focusing on expanding its commercial banking franchise and enhancing its service offerings to clients. The company's leadership remains committed to executing solid fundamentals and increasing market share in its operating regions.



A Who Owns CF Bankshares Inc. (CFBK)

Insider Ownership

As of 2024, approximately 40% of CF Bankshares Inc. (CFBK) outstanding stock is held by Board Members and Management, including their affiliates and related parties.

Major Shareholders

The shareholder structure of CF Bankshares Inc. is characterized by a mix of institutional and retail investors. The following table outlines the key shareholders along with their respective ownership percentages:

Shareholder Type Ownership Percentage Notes
Insider Ownership (Management & Board) 40% Includes affiliates and related parties
Institutional Investors Approximately 25% Includes mutual funds and pension funds
Retail Investors Approximately 35% Individual shareholders

Recent Financial Performance

In Q3 of 2024, CF Bankshares Inc. reported a net income of $4.2 million, which translates to $0.65 per diluted common share. The performance metrics indicate a strong financial position, with a return on average equity (ROE) of 10.38% and a return on average assets (ROA) of 0.84%.

Market Performance and Valuation

As of September 30, 2024, the book value per common share was $24.83, while the period-end market value per common share was $21.65. The company has shown consistent growth in net interest income, totaling $11.5 million for the quarter.

Dividends

On October 1, 2024, the Board of Directors declared a cash dividend of $0.07 per share on its common stock, paid to shareholders of record as of October 11, 2024.

Recent Developments

CF Bankshares has strategically repositioned its business model to enhance visibility and efficiency by relocating its main office to Northeast Ohio. The bank is focusing on expanding its commercial banking franchise and increasing its market share in major metropolitan areas such as Columbus, Cleveland, Cincinnati, and Indianapolis.



CF Bankshares Inc. (CFBK) Mission Statement

CF Bankshares Inc. (CFBK) is a holding company that operates CFBank, a boutique commercial bank focused on providing tailored banking solutions primarily to small and medium-sized businesses. The mission of CFBK emphasizes customer-centric service, innovative financial solutions, and a commitment to community engagement.

Core Values

  • Customer Focus: Prioritizing the needs and satisfaction of clients through personalized services.
  • Integrity: Upholding transparency and ethical practices in all business dealings.
  • Innovation: Continually enhancing banking products and services to meet evolving market demands.
  • Community Commitment: Actively participating in community development and supporting local initiatives.

Strategic Objectives

CFBK aims to expand its market presence in key metropolitan areas such as Columbus, Cleveland, Cincinnati, and Indianapolis by enhancing its commercial banking capabilities. The bank emphasizes growth in noninterest-bearing deposits and seeks to improve its net interest margin while maintaining a robust loan portfolio.

Financial Performance Highlights (Q3 2024)

Metric Q3 2024 Q2 2024 Q3 2023
Net Income $4.2 million $1.7 million $4.0 million
Earnings per Share (Diluted) $0.65 $0.26 $0.62
Net Interest Income $11.5 million $11.4 million $11.7 million
Net Interest Margin 2.41% 2.39% 2.50%
Return on Average Assets 0.84% 0.34% 0.82%
Return on Average Equity 10.38% 4.23% 10.75%

Recent Developments

As of October 1, 2024, the Board of Directors declared a cash dividend of $0.07 per share on its common stock, reflecting a commitment to returning value to shareholders. During Q3 2024, noninterest-bearing deposits grew by $40 million, representing an 18% increase.

Market Positioning

CFBK aims to leverage its strong insider ownership—approximately 40% of outstanding stock held by Board Members and Management—to attract institutional and retail investors. The bank continues to focus on enhancing its commercial banking franchise to support growth objectives.

Key Financial Metrics

Metric Value
Total Deposits $1.75 billion
Total Loans and Leases $1.7 billion
Nonaccrual Loans $14.6 million
Allowance for Credit Losses $16.8 million
Stockholders' Equity $164.0 million

CFBK's focus on maintaining solid fundamentals and customer relationships positions it well for sustained growth and profitability in the competitive banking landscape.



How CF Bankshares Inc. (CFBK) Works

Company Overview

CF Bankshares Inc. is the parent company of CFBank, National Association, a commercial bank operating primarily in Columbus, Cleveland, Cincinnati, and Indianapolis. The bank focuses on serving the needs of entrepreneurs and closely-held businesses.

Financial Performance

As of September 30, 2024, CF Bankshares reported the following financial highlights:

Metric Q3 2024 Q2 2024 Q3 2023
Net Income $4.2 million $1.7 million $4.0 million
Basic Earnings per Share $0.65 $0.26 $0.62
Diluted Earnings per Share $0.65 $0.26 $0.62
Return on Average Assets (ROA) 0.84% 0.34% 0.82%
Return on Average Equity (ROE) 10.38% 4.23% 10.75%
Net Interest Margin (NIM) 2.41% 2.39% 2.50%
Noninterest Expense $7.2 million $7.1 million $6.8 million

Revenue Streams

CF Bankshares generates revenue through various streams, including:

  • Net Interest Income: $11.5 million for Q3 2024, a slight increase from $11.4 million in Q2 2024.
  • Noninterest Income: $1.6 million for Q3 2024, an increase of 31.9% compared to the prior quarter.

Loan Portfolio

Net loans and leases totaled $1.7 billion at September 30, 2024, reflecting an increase of $29.4 million from the previous quarter. The composition of loan types includes:

Loan Type Amount (in thousands)
Multi-family $227,895
Commercial Real Estate $111,897
Construction – Non-residential $35,608
Single-family Residential $119,504
Commercial and Industrial $67,807

Deposits

CF Bankshares reported total deposits of $1.75 billion as of September 30, 2024, marking an increase of $49.1 million or 2.9% from the previous quarter. Key deposit metrics include:

Deposit Type Amount (in millions) Change (%)
Noninterest-bearing Deposits $260.1 +18%
Interest-bearing Deposits $1,489.9 +0.6%

Expense Management

Noninterest expenses totaled $7.2 million for Q3 2024, reflecting a 1.9% increase from the previous quarter. Key components of noninterest expenses include:

Expense Type Amount (in thousands)
Salaries and Employee Benefits $3,539
Occupancy and Equipment $472
Data Processing $623
Professional Fees $654
FDIC Premiums $529

Capital Position

As of September 30, 2024, CF Bankshares reported stockholders' equity of $164.0 million, an increase of 2.8% compared to the previous quarter. Key capital metrics include:

Capital Ratio Value (%)
Tier 1 Capital Leverage Ratio 10.36%
Total Risk-Based Capital Ratio 13.43%
Common Equity Tier 1 Ratio 12.35%

Asset Quality

The allowance for credit losses on loans and leases stood at $16.8 million as of September 30, 2024. Nonaccrual loans amounted to $14.6 million, representing 0.84% of total loans.

Metric Value
Nonaccrual Loans $14.6 million
Allowance for Credit Losses $16.8 million
Net Charge-offs $3.3 million


How CF Bankshares Inc. (CFBK) Makes Money

Net Interest Income

CF Bankshares Inc. generates a significant portion of its revenue through net interest income. For the quarter ended September 30, 2024, net interest income totaled $11.46 million, marking a 0.8% increase from the previous quarter but a 1.8% decrease compared to the same quarter in 2023. The total interest income for the same period was $29.996 million, while total interest expense was $18.536 million.

The net interest margin (NIM) for the third quarter of 2024 was 2.41%, which is an increase of 2 basis points from the previous quarter.

Commercial Banking Activities

CF Bank is focused on expanding its commercial banking operations, with commercial loans increasing by $35 million during the quarter. Total loans and leases (gross) also increased by $27 million. The bank's strategy includes repositioning its balance sheet by reducing residential mortgage loans and enhancing its commercial banking pipelines.

Deposit Growth

As of September 30, 2024, total deposits reached $1.75 billion, an increase of $49.1 million or 2.9% from the previous quarter. Noninterest-bearing deposits grew by $40 million (or 18%) during the quarter.

Noninterest Income

Noninterest income for the third quarter of 2024 totaled $1.606 million, representing a 31.9% increase from the previous quarter and a 23.4% increase year-over-year. The primary contributors to this growth included:

  • Service charges on deposit accounts: $655,000 (up 65%)
  • Net gain on sales of residential mortgage loans: $110,000 (up 129%)
  • Swap fee income: $252,000 (decreased by 43%)
  • Other noninterest income: $589,000 (up 47%)

Expenses

Noninterest expenses for the quarter were $7.226 million, which is a 1.9% increase from the prior quarter and a 6.9% increase compared to Q3 2023. The breakdown includes:

  • Salaries and employee benefits: $3.539 million
  • Occupancy and equipment: $472,000
  • Data processing: $623,000
  • FDIC premiums: $529,000

Performance Ratios

For the third quarter of 2024, key performance ratios included:

  • Return on Average Assets (ROA): 0.84%
  • Return on Average Equity (ROE): 10.38%
  • Efficiency Ratio: 55.30%
Financial Metric Q3 2024 Q2 2024 Q3 2023
Net Interest Income $11.460 million $11.367 million $11.667 million
Total Interest Income $29.996 million $29.315 million $28.166 million
Total Interest Expense $18.536 million $17.948 million $16.499 million
Net Income $4.205 million $1.695 million $4.031 million
Noninterest Income $1.606 million $1.218 million $1.301 million
Noninterest Expense $7.226 million $7.092 million $6.760 million
ROA 0.84% 0.34% 0.82%
ROE 10.38% 4.23% 10.75%

CF Bankshares Inc. continues to evolve its business model to optimize profitability through strategic growth in commercial banking, deposit capture, and careful management of its interest income and expenses.

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Article updated on 8 Nov 2024

Resources:

  • CF Bankshares Inc. (CFBK) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of CF Bankshares Inc. (CFBK)' financial performance, including balance sheets, income statements, and cash flow statements.
  • SEC Filings – View CF Bankshares Inc. (CFBK)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.