CF BANKSHARES INC. ANNOUNCES STOCK REPURCHASE PROGRAM FOR UP TO 325,000 SHARES, OR APPROXIMATELY 5% OF OUTSTANDING COMMON STOCK

Rhea-AI Summary

CF Bankshares (NASDAQ: CFBK) has announced a new stock repurchase program authorized by its Board of Directors. The program allows the company to repurchase up to 325,000 shares, representing approximately 5% of its outstanding common stock, through January 31, 2026.

The repurchases may be conducted through various means, including open market and privately negotiated transactions, in compliance with securities laws and regulations, including Rule 10b-18 and Rule 10b5-1 under the Securities Exchange Act of 1934. The timing, manner, and amount of repurchases will be determined by management based on factors such as trading price, market conditions, and regulatory requirements. The program can be suspended or discontinued at any time.

Positive

• Authorization to repurchase 5% of outstanding shares (325,000 shares)
• Program demonstrates management's confidence in company's business model
• Potential enhancement of shareholder value through stock buyback
• Flexible implementation timeline until January 2026

Negative

• No guaranteed number or value of shares to be repurchased
• Program may be suspended or discontinued at any time

Insights

Financial Analyst

The announcement of CF Bankshares' 325,000 share repurchase program signals a strategic move that warrants careful analysis. With a current market cap of $148.5 million, this 5% reduction in outstanding shares could have meaningful implications for key metrics:

The buyback reflects several positive indicators:

• Strong capital position enabling return of excess capital to shareholders while maintaining regulatory requirements
• Management's conviction that shares are undervalued at current levels
• Flexible execution framework allowing opportunistic purchases through January 2026
• Potential enhancement of key performance metrics including EPS and ROE through share count reduction

The program's structure, allowing both open market and private transactions, provides management with tactical flexibility to optimize timing and pricing. The Rule 10b-18 compliance framework ensures orderly market execution while Rule 10b5-1 provisions enable consistent implementation even during blackout periods.

For investors, this represents a balanced approach to capital return. The 5% target is meaningful enough to impact shareholder value while maintaining prudent capital reserves for growth opportunities. The extended timeframe through January 2026 suggests a measured approach rather than aggressive short-term repurchases, aligning with sound banking sector capital management practices.

Notably, this announcement comes at a time when many regional banks are focusing on capital preservation, making CF Bankshares' confidence in its financial position particularly noteworthy. The authorization's size relative to the company's market cap indicates a material commitment to shareholder value enhancement while maintaining operational flexibility.

COLUMBUS, Ohio, Feb. 4, 2025 /PRNewswire/ -- CF Bankshares Inc. (NASDAQ: CFBK) (the "Company"), the parent of CFBank, announced today that the Board of Directors of the Company has authorized a new stock repurchase program pursuant to which the Company may repurchase up to 325,000 shares, or approximately 5% of the Company's outstanding common stock, on or before January 31, 2026.  Under the stock repurchase program, the Company may purchase shares of its common stock from time to time through various means, including open market transactions and privately negotiated transactions. Open market repurchases will be made in accordance with applicable securities laws and regulations, including Rule 10b-18 under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and may be effected pursuant to Rule 10b5-1 under the Exchange Act. There is no guarantee as to the exact number or value of shares that will be repurchased by the Company.  The manner, timing and amount of any stock repurchases will be determined by the Company's management in its discretion based on its evaluation of various factors, including the trading price of the Company's common stock, market and economic conditions, regulatory requirements and other corporate considerations. The repurchase program may be suspended or discontinued at any time.

Timothy T. O'Dell, President and CEO, commented "We believe our stock is a good value, and the Board's approval of this stock repurchase program reflects confidence in our Company's business model and intrinsic value and demonstrates our commitment to enhancing shareholder value."

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 in excess 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, equipment leases, commercial and residential real estate loans, 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 CF Bankshares Inc. and 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, 2023.

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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SOURCE CF BANKSHARES INC.

FAQ

How many shares can CF Bankshares (CFBK) repurchase under its new program?

CF Bankshares can repurchase up to 325,000 shares, which represents approximately 5% of its outstanding common stock.

When does CFBK's stock repurchase program expire?

The stock repurchase program expires on January 31, 2026.

What methods will CFBK use to repurchase shares?

CFBK may purchase shares through various means, including open market transactions and privately negotiated transactions, in compliance with Rules 10b-18 and 10b5-1.

What factors will determine CFBK's stock repurchase timing and amount?

Management will consider factors including trading price, market conditions, regulatory requirements, and other corporate considerations to determine the timing and amount of repurchases.

Can CFBK terminate the stock repurchase program before completion?

Yes, CF Bankshares can suspend or discontinue the repurchase program at any time at its discretion.