CF BANKSHARES INC., PARENT OF CFBANK NA, REPORTS RESULTS FOR THE 2nd QUARTER 2024
CF Bankshares Inc. (NASDAQ: CFBK) reported financial results for Q2 2024. Key highlights include:
- Net income of $1.7 million ($0.26 per diluted share)
- Pre-provision, pre-tax net revenue (PPNR) of $5.5 million
- Return on Average Equity (ROE) of 4.23% and PPNR ROE of 13.71%
- Return on Average Assets (ROA) of 0.34% and PPNR ROA of 1.10%
- Net Interest Margin (NIM) increased 3bps compared to previous quarter
- Service charge income up 64% year-over-year
- New commercial loan production of $16.8 million
Results were impacted by $3.1 million in additional specific reserves on two loan participations. Excluding this impact, adjusted core performance metrics would have been higher. The company declared a cash dividend of $0.06 per common share.
CF Bankshares Inc. (NASDAQ: CFBK) ha riportato i risultati finanziari per il secondo trimestre del 2024. I punti salienti includono:
- Utile netto di 1,7 milioni di dollari (0,26 dollari per azione diluita)
- Ricavi netti pre-accantonamento, pre-imposta (PPNR) di 5,5 milioni di dollari
- Rendimento medio del capitale (ROE) del 4,23% e ROE PPNR del 13,71%
- Rendimento medio delle attività (ROA) dello 0,34% e ROA PPNR dell'1,10%
- Margin di interesse netto (NIM) aumentato di 3 punti base rispetto al trimestre precedente
- Entrate da commissioni di servizio aumentate del 64% rispetto all'anno precedente
- Nuova produzione di prestiti commerciali di 16,8 milioni di dollari
I risultati sono stati influenzati da 3,1 milioni di dollari in accantonamenti specifici aggiuntivi su due partecipazioni in prestiti. Escludendo questo impatto, i metriche di performance di base rettificate sarebbero state più elevate. L'azienda ha dichiarato un dividendo in contante di 0,06 dollari per azione ordinaria.
CF Bankshares Inc. (NASDAQ: CFBK) informó los resultados financieros del segundo trimestre de 2024. Los aspectos destacados incluyen:
- Ingreso neto de 1,7 millones de dólares (0,26 dólares por acción diluida)
- Ingresos netos antes de provisiones y antes de impuestos (PPNR) de 5,5 millones de dólares
- Retorno sobre el capital promedio (ROE) del 4,23% y ROE PPNR del 13,71%
- Retorno sobre activos promedio (ROA) del 0,34% y ROA PPNR del 1,10%
- Margen de interés neto (NIM) aumentó 3 puntos básicos en comparación con el trimestre anterior
- Los ingresos por cargos de servicio aumentaron un 64% interanual
- Nueva producción de préstamos comerciales de 16,8 millones de dólares
Los resultados se vieron afectados por 3,1 millones de dólares en reservas específicas adicionales sobre dos participaciones de préstamos. Excluyendo este impacto, las métricas de rendimiento central ajustadas habrían sido más altas. La empresa declaró un dividendo en efectivo de 0,06 dólares por acción común.
CF Bankshares Inc. (NASDAQ: CFBK)는 2024년 2분기 재무 결과를 발표했습니다. 주요 내용은 다음과 같습니다:
- 순이익 170만 달러 (희석주당 0.26 달러)
- 충당금 전, 세전 순수익(PPNR) 550만 달러
- 평균 자본 수익률(ROE) 4.23% 및 PPNR ROE 13.71%
- 평균 자산 수익률(ROA) 0.34% 및 PPNR ROA 1.10%
- 순이자 마진(NIM)이 전 분기 대비 3bp 증가
- 서비스 수수료 수입이 전년 대비 64% 증가
- 새로운 상업 대출 생산 1680만 달러
결과는 두 개의 대출 참여에 대한 추가 특정 충당금 310만 달러에 영향을 받았습니다. 이 영향을 제외하면 조정된 핵심 성과 지표가 더 높아졌을 것입니다. 회사는 보통주 0.06달러의 현금 배당금을 선언했습니다.
CF Bankshares Inc. (NASDAQ: CFBK) a annoncé les résultats financiers pour le deuxième trimestre 2024. Les points essentiels comprennent :
- Revenu net de 1,7 million de dollars (0,26 dollar par action diluée)
- Revenu net avant provisions, avant impôts (PPNR) de 5,5 millions de dollars
- Retour sur capital moyen (ROE) de 4,23% et ROE PPNR de 13,71%
- Retour sur actifs moyens (ROA) de 0,34% et ROA PPNR de 1,10%
- La marge d'intérêt net (NIM) a augmenté de 3 points de base par rapport au trimestre précédent
- Les revenus des frais de service ont augmenté de 64% par rapport à l'année précédente
- Nouvelle production de prêts commerciaux de 16,8 millions de dollars
Les résultats ont été affectés par 3,1 millions de dollars de réserves spécifiques supplémentaires sur deux participations de prêt. En excluant cet impact, les indicateurs de performance de base ajustés auraient été plus élevés. L'entreprise a déclaré un dividende en espèces de 0,06 dollar par action ordinaire.
CF Bankshares Inc. (NASDAQ: CFBK) hat die Finanzergebnisse für das zweite Quartal 2024 veröffentlicht. Die wichtigsten Highlights sind:
- Nettoeinkommen von 1,7 Millionen Dollar (0,26 Dollar pro verwässerter Aktie)
- Vor Rückstellungen, vor Steuern netto Umsatz (PPNR) von 5,5 Millionen Dollar
- Rendite des durchschnittlichen Eigenkapitals (ROE) von 4,23% und PPNR ROE von 13,71%
- Rendite der durchschnittlichen Aktiva (ROA) von 0,34% und PPNR ROA von 1,10%
- Nettozinsmarge (NIM) um 3 Basispunkte im Vergleich zum Vorquartal gestiegen
- Einnahmen aus Servicegebühren stiegen im Jahresvergleich um 64%
- Neue kommerzielle Kreditproduktion von 16,8 Millionen Dollar
Die Ergebnisse wurden durch zusätzliche spezifische Rückstellungen in Höhe von 3,1 Millionen Dollar für zwei Kreditanteile beeinflusst. Ohne diesen Einfluss wären die angepassten Kernleistungskennzahlen höher ausgefallen. Das Unternehmen erklärte eine Bardividende von 0,06 Dollar pro Stammaktie.
- Net Interest Margin (NIM) increased 3bps compared to previous quarter
- Service charge income increased 64% year-over-year and 11% quarter-over-quarter
- New commercial loan production totaled $16.8 million in Q2 2024
- Loan and business pipelines are expanding in major regional markets
- Core customer loan book continues to perform well with low past due and classified asset ratios
- Net income decreased to $1.7 million in Q2 2024 from $4.2 million in Q2 2023
- Q2 2024 results impacted by $3.1 million of additional specific reserves on two loan participations
- Net loans and leases decreased by $8.0 million (0.5%) from the prior quarter
- Nonaccrual loans increased to $10.9 million, up from $7.9 million in the previous quarter
- Deposits decreased by $26.6 million (1.5%) compared to the previous quarter
Insights
CF Bankshares reported mixed Q2 2024 results, with some concerning elements. Net income fell to
Key metrics:
- ROE:
4.23% - ROA:
0.34% - Net Interest Margin:
2.39% (up 3bps from Q1)
Positively, service charge income increased
The Q2 results reveal some worrying credit quality trends. Nonaccrual loans increased to
The
Investors should closely monitor these trends in coming quarters, as continued credit quality issues could significantly impact profitability and capital.
Despite challenging credit conditions, CF Bankshares shows some operational strengths. The bank's net interest margin improved slightly to
The bank's focus on commercial lending and regional expansion, particularly in Indianapolis, could drive future growth. However, the
The efficiency ratio and cost control measures appear stable, but continued pressure on credit quality could necessitate increased expenses for loan monitoring and workout activities.
Second Quarter 2024 and YTD Highlights
- Net income for Q2 2024 was
$1.7 million $0.26 $5.5 million $3.1 million - Return on Average Equity (ROE) was
4.23% and PPNR ROE was13.71% for Q2 2024, while Return on Average Assets (ROA) was 0.34% and PPNR ROA was1.10% . - Excluding the impact of the additional specific reserves on noncore assets in Q2 2024, second quarter adjusted core performance metrics would have been: Adjusted ROA:
0.89% , Adjusted ROE:10.25% and Adjusted earnings per diluted common share:$0.65 - Net Interest Margin (NIM) increased 3bps when compared to the previous quarter.
- Service charge income increased
$244,000 64% ) when compared to Q2 2023 and$64,000 11% ) when compared to the previous quarter. Year to date, income from service charges is up$499,000 73% ) when compared to the first six months of 2023. - New commercial loan production totaled
$16.8 Columbus ,Cleveland ,Cincinnati &Indianapolis ) are expanding.
Recent Developments
- On July 1, 2024, the Company's Board of Directors declared a cash dividend of
$0.06 $6.00
CEO and Board Chair Commentary
Timothy T. O'Dell, President and CEO, commented: "Net After Tax Consolidated Earnings for Q2 were
The two loan participations mentioned are not considered core assets because no underlying customer relationship exists. These earning assets were purchased in 2021 to hedge the earning asset loan runoff impact and redeploy excess liquidity following our exit of the DTC Mortgage Lending business and payoffs of PPP loans.
Including noncore assets as of June 30, 2024, loans past due 30+ days equaled
Our core customer loan book continues to perform well as evidenced by the following metrics as of June 30, 2024: core loans past due 30+ days equaled
Commercial loan generation and loan pipelines remain strong and are increasing. To date, commercial real estate loan payoffs received are offsetting net loan growth.
In the coming quarters, we foresee lessening amounts of loan payoff's, which would contribute to stronger net loan growth performance.
Earlier investment in strengthening our Regional Banking teams is producing increased business opportunities including loans, deposits and fee income business across our entire footprint. For example, new leadership in Treasury Management has increased fee income by
We remain bullish about our business opportunities for the second half of 2024 and believe Our Best is Yet Ahead!"
Robert E. Hoeweler, Chairman of the Board, added: "Our underpinning business fundamentals remain very strong. We are buoyed by our continuing success attracting quality new business and banking talent, as our business model and delivery of commercial banking services resonates strongly with entrepreneurs and closely held businesses."
Overview of Results
Net income for the three months ended June 30, 2024 totaled
Net income for the six months ended June 30, 2024 totaled
Net Interest Income and Net Interest Margin
Net interest income totaled
The increase in net interest income compared to the prior quarter was primarily due to a
The decrease in net interest income compared to the second quarter of 2023 was primarily due to a
Noninterest Income
Noninterest income for the quarter ended June 30, 2024 totaled
Noninterest income for the quarter ended June 30, 2024 increased
The following table represents the notional amount of loans sold during the three months ended June 30, 2024, March 31, 2024, and June 30, 2023 (in thousands).
Three Months ended | ||||||||
June 30, 2024 | March 31, 2024 | June 30, 2023 | ||||||
Notional amount of loans sold | $ | 10,837 | $ | 9,037 | $ | 3,171 | ||
Noninterest Expense
Noninterest expense for the quarter ended June 30, 2024 totaled
Noninterest expense for the quarter ended June 30, 2024 decreased
Income Tax Expense
Income tax expense was
Loans and Loans Held For Sale
Net loans and leases totaled
The decrease in net loans and leases from December 31, 2023, was primarily due to
The following table presents the recorded investment in loans and leases for certain non-owner-occupied loan types (in thousands).
June 30, 2024 | March 31, 2024 | |||
Construction – 1-4 family* | $ | 22,877 | $ | 23,622 |
Construction – Multi-family* | 118,815 | 106,251 | ||
Construction – Non-residential* | 41,271 | 46,594 | ||
Hotel/Motel | 12,144 | 12,214 | ||
Industrial / Warehouse | 57,368 | 57,837 | ||
Land/Land Development | 17,139 | 16,348 | ||
Medical/Healthcare/Senior Housing | 318 | 346 | ||
Multi-family | 180,511 | 189,539 | ||
Office | 40,312 | 44,819 | ||
Retail | 53,397 | 53,701 | ||
Other | 30,856 | 31,316 | ||
*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
The increase in nonaccrual loans when compared to December 31, 2023 was primarily driven by five commercial loans, totaling
The allowance for credit losses on loans and leases totaled
There was
Deposits
Deposits totaled
At June 30, 2024, approximately
Borrowings
FHLB advances and other debt totaled
Capital
Stockholders' equity totaled
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
About CF Bankshares Inc. and CFBank
CF Bankshares Inc. (the "Company") is a holding company that owns
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.
CFBank was named one of Piper Sandler's "Bank & Thrift Sm-All Stars" for 2023. This recognition places us among the top
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
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 | Six months ended | |||||||||||||
June 30, | June 30, | ||||||||||||||
2024 | 2023 | % | 2024 | 2023 | % | ||||||||||
Total interest income | $ | 29,315 | $ | 26,225 | 12 % | $ | 58,401 | 50,401 | 16 % | ||||||
Total interest expense | 17,948 | 14,739 | 22 % | 35,750 | 26,182 | 37 % | |||||||||
Net interest income | 11,367 | 11,486 | -1 % | 22,651 | 24,219 | -6 % | |||||||||
Provision for credit losses | |||||||||||||||
Provision for credit losses-loans | 3,195 | (63) | n/m | 4,512 | 204 | 2112 % | |||||||||
Provision for credit losses-unfunded commitments | 366 | 75 | 388 % | 286 | 45 | 536 % | |||||||||
3,561 | 12 | 29575 % | 4,798 | 249 | 1827 % | ||||||||||
Net interest income after provision for credit losses | 7,806 | 11,474 | -32 % | 17,853 | 23,970 | -26 % | |||||||||
Noninterest income | |||||||||||||||
Service charges on deposit accounts | 623 | 379 | 64 % | 1,182 | 683 | 73 % | |||||||||
Net gain (loss) on sales of residential mortgage loans | 87 | 40 | 118 % | 177 | 37 | 378 % | |||||||||
Net gains on sale of commercial loans | - | - | n/m | 167 | - | n/m | |||||||||
Swap fee income | - | 142 | -100 % | - | 172 | -100 % | |||||||||
Other | 508 | 417 | 22 % | 597 | 805 | -26 % | |||||||||
Noninterest income | 1,218 | 978 | 25 % | 2,123 | 1,697 | 25 % | |||||||||
Noninterest expense | |||||||||||||||
Salaries and employee benefits | 3,570 | 3,778 | -6 % | 7,078 | 7,764 | -9 % | |||||||||
Occupancy and equipment | 471 | 456 | 3 % | 905 | 837 | 8 % | |||||||||
Data processing | 649 | 487 | 33 % | 1,264 | 1,036 | 22 % | |||||||||
Franchise and other taxes | 356 | 328 | 9 % | 642 | 627 | 2 % | |||||||||
Professional fees | 590 | 632 | -7 % | 1,253 | 1,238 | 1 % | |||||||||
Director fees | 143 | 164 | -13 % | 268 | 334 | -20 % | |||||||||
Postage, printing, and supplies | 42 | 37 | 14 % | 86 | 92 | -7 % | |||||||||
Advertising and marketing | 38 | 71 | -46 % | 52 | 254 | -80 % | |||||||||
Telephone | 52 | 72 | -28 % | 103 | 136 | -24 % | |||||||||
Loan expenses | 259 | 187 | 39 % | 706 | 359 | 97 % | |||||||||
Depreciation | 122 | 148 | -18 % | 252 | 281 | -10 % | |||||||||
FDIC premiums | 499 | 519 | -4 % | 1,099 | 1,022 | 8 % | |||||||||
Regulatory assessment | 66 | 60 | 10 % | 131 | 118 | 11 % | |||||||||
Other insurance | 51 | 52 | -2 % | 107 | 99 | 8 % | |||||||||
Other | 184 | 182 | 1 % | 333 | 667 | -50 % | |||||||||
Noninterest expense | 7,092 | 7,173 | -1 % | 14,279 | 14,864 | -4 % | |||||||||
Income before income taxes | 1,932 | 5,279 | -63 % | 5,697 | 10,803 | -47 % | |||||||||
Income tax expense | 237 | 1,056 | -78 % | 932 | 2,132 | -56 % | |||||||||
Net income | 1,695 | 4,223 | -60 % | 4,765 | 8,671 | -45 % | |||||||||
Earnings allocated to participating securities (Series D preferred stock) | (54) | - | n/m | (121) | - | n/m | |||||||||
Net Income attributable to common stockholders | $ | 1,641 | $ | 4,223 | -61 % | $ | 4,644 | $ | 8,671 | -46 % | |||||
Share Data | |||||||||||||||
Basic earnings per common share | $ | 0.26 | $ | 0.66 | $ | 0.74 | $ | 1.35 | |||||||
Diluted earnings per common share | $ | 0.26 | $ | 0.66 | $ | 0.74 | $ | 1.35 | |||||||
Average common shares outstanding - basic | 6,256,457 | 6,418,305 | 6,293,178 | 6,410,624 | |||||||||||
Average common shares outstanding - diluted | 6,256,457 | 6,433,623 | 6,306,878 | 6,431,508 | |||||||||||
n/m - not meaningful | |||||||||||||||
Consolidated Statements of Financial Condition | |||||||||||||||
($ in thousands) | Jun 30, | Mar 31, | Dec 31, | Sept 30, | Jun 30, | ||||||||||
(unaudited) | 2024 | 2024 | 2023 | 2023 | 2023 | ||||||||||
Assets | |||||||||||||||
Cash and cash equivalents | $ | 241,775 | $ | 236,892 | $ | 261,595 | $ | 229,763 | $ | 231,600 | |||||
Interest-bearing deposits in other financial institutions | 100 | 100 | 100 | 100 | 100 | ||||||||||
Securities available for sale | 8,323 | 7,597 | 8,092 | 8,480 | 8,966 | ||||||||||
Equity securities | 5,000 | 5,000 | 5,000 | 5,000 | 5,000 | ||||||||||
Loans held for sale | 3,187 | 2,241 | 1,849 | 1,355 | 1,355 | ||||||||||
Loans and leases | 1,706,980 | 1,713,929 | 1,710,998 | 1,676,806 | 1,647,103 | ||||||||||
Less allowance for credit losses on loans and leases | (19,285) | (18,198) | (16,865) | (17,032) | (15,960) | ||||||||||
Loans and leases, net | 1,687,695 | 1,695,731 | 1,694,133 | 1,659,774 | 1,631,143 | ||||||||||
FHLB and FRB stock | 9,830 | 8,491 | 8,482 | 8,499 | 8,736 | ||||||||||
Premises and equipment, net | 3,571 | 3,685 | 3,812 | 3,940 | 4,085 | ||||||||||
Operating lease right of use assets | 4,858 | 5,041 | 5,221 | 5,138 | 5,313 | ||||||||||
Bank owned life insurance | 26,683 | 26,470 | 26,266 | 26,103 | 25,946 | ||||||||||
Accrued interest receivable and other assets | 49,612 | 48,225 | 44,065 | 44,300 | 40,605 | ||||||||||
Total assets | $ | 2,040,634 | $ | 2,039,473 | $ | 2,058,615 | $ | 1,992,452 | $ | 1,962,849 | |||||
Liabilities and Stockholders' Equity | |||||||||||||||
Deposits | |||||||||||||||
Noninterest bearing | $ | 217,771 | $ | 236,841 | $ | 235,916 | $ | 214,334 | $ | 216,966 | |||||
Interest bearing | 1,478,705 | 1,486,229 | 1,508,141 | 1,470,659 | 1,443,117 | ||||||||||
Total deposits | 1,696,476 | 1,723,070 | 1,744,057 | 1,684,993 | 1,660,083 | ||||||||||
FHLB advances and other debt | 137,163 | 111,004 | 109,995 | 109,987 | 109,978 | ||||||||||
Advances by borrowers for taxes and insurance | 154 | 1,093 | 2,179 | 1,737 | 2,034 | ||||||||||
Operating lease liabilities | 4,949 | 5,127 | 5,302 | 5,216 | 5,388 | ||||||||||
Accrued interest payable and other liabilities | 27,322 | 26,209 | 26,747 | 24,298 | 23,084 | ||||||||||
Subordinated debentures | 14,980 | 14,971 | 14,961 | 14,951 | 14,941 | ||||||||||
Total liabilities | 1,881,044 | 1,881,474 | 1,903,241 | 1,841,182 | 1,815,508 | ||||||||||
Stockholders' equity | 159,590 | 157,999 | 155,374 | 151,270 | 147,341 | ||||||||||
Total liabilities and stockholders' equity | $ | 2,040,634 | $ | 2,039,473 | $ | 2,058,615 | $ | 1,992,452 | $ | 1,962,849 | |||||
Average Balance Sheet and Yield Analysis | ||||||||||||||||||||||||||
For Three Months Ended | ||||||||||||||||||||||||||
June 30, 2024 | March 31, 2024 | June 30, 2023 | ||||||||||||||||||||||||
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) | $ | 12,902 | $ | 133 | 3.37 % | $ | 13,077 | $ | 129 | 3.23 % | $ | 14,406 | $ | 213 | 4.94 % | |||||||||||
Loans and leases and loans held for sale (3) | 1,688,522 | 26,339 | 6.24 % | 1,694,701 | 26,010 | 6.14 % | 1,627,516 | 23,684 | 5.82 % | |||||||||||||||||
Other earning assets | 191,199 | 2,679 | 5.60 % | 196,600 | 2,782 | 5.66 % | 165,843 | 2,190 | 5.28 % | |||||||||||||||||
FHLB and FRB stock | 8,646 | 164 | 7.59 % | 8,488 | 165 | 7.78 % | 9,133 | 138 | 6.04 % | |||||||||||||||||
Total interest-earning assets | 1,901,269 | 29,315 | 6.16 % | 1,912,866 | 29,086 | 6.07 % | 1,816,898 | 26,225 | 5.76 % | |||||||||||||||||
Noninterest-earning assets | 96,107 | 91,328 | 92,456 | |||||||||||||||||||||||
Total assets | $ | 1,997,376 | $ | 2,004,194 | $ | 1,909,354 | ||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||||
Deposits | $ | 1,443,860 | 16,784 | 4.65 % | $ | 1,453,397 | 16,650 | 4.58 % | $ | 1,388,672 | 13,660 | 3.93 % | ||||||||||||||
FHLB advances and other borrowings | 126,918 | 1,164 | 3.67 % | 125,724 | 1,152 | 3.67 % | 125,505 | 1,079 | 3.44 % | |||||||||||||||||
Total interest-bearing liabilities | 1,570,778 | 17,948 | 4.57 % | 1,579,121 | 17,802 | 4.51 % | 1,514,177 | 14,739 | 3.89 % | |||||||||||||||||
Noninterest-bearing liabilities | 266,393 | 267,714 | 249,608 | |||||||||||||||||||||||
Total liabilities | 1,837,171 | 1,846,835 | 1,763,785 | |||||||||||||||||||||||
Equity | 160,205 | 157,359 | 145,569 | |||||||||||||||||||||||
Total liabilities and equity | $ | 1,997,376 | $ | 2,004,194 | $ | 1,909,354 | ||||||||||||||||||||
Net interest-earning assets | $ | 330,491 | $ | 333,745 | $ | 302,721 | ||||||||||||||||||||
Net interest income/interest rate spread | $ | 11,367 | 1.59 % | $ | 11,284 | 1.56 % | $ | 11,486 | 1.87 % | |||||||||||||||||
Net interest margin | 2.39 % | 2.36 % | 2.52 % | |||||||||||||||||||||||
Average interest-earning assets | ||||||||||||||||||||||||||
to average interest-bearing liabilities | 121.04 % | 121.13 % | 119.99 % | |||||||||||||||||||||||
(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 | |||||||||||||||||||||
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) | 2024 | 2024 | 2023 | 2023 | 2023 | 2024 | 2023 | ||||||||||||||
Earnings and Dividends | |||||||||||||||||||||
Net interest income | $ | 11,367 | $ | 11,284 | $ | 11,754 | $ | 11,667 | $ | 11,486 | $ | 22,651 | $ | 24,219 | |||||||
Provision for credit losses | $ | 3,561 | $ | 1,237 | $ | 875 | $ | 1,193 | $ | 12 | $ | 4,798 | $ | 249 | |||||||
Noninterest income | $ | 1,218 | $ | 905 | $ | 1,033 | $ | 1,301 | $ | 978 | $ | 2,123 | $ | 1,697 | |||||||
Noninterest expense | $ | 7,092 | $ | 7,187 | $ | 6,745 | $ | 6,760 | $ | 7,173 | $ | 14,279 | $ | 14,864 | |||||||
Net income | $ | 1,695 | $ | 3,070 | $ | 4,235 | $ | 4,031 | $ | 4,223 | $ | 4,765 | $ | 8,671 | |||||||
Basic earnings per common share | $ | 0.26 | $ | 0.48 | $ | 0.66 | $ | 0.63 | $ | 0.66 | $ | 0.74 | $ | 1.35 | |||||||
Diluted earnings per common share | $ | 0.26 | $ | 0.47 | $ | 0.65 | $ | 0.62 | $ | 0.66 | $ | 0.74 | $ | 1.35 | |||||||
Dividends declared per share | $ | 0.06 | $ | 0.06 | $ | 0.06 | $ | 0.06 | $ | 0.06 | $ | 0.12 | $ | 0.11 | |||||||
Performance Ratios (annualized) | |||||||||||||||||||||
Return on average assets | 0.34 % | 0.61 % | 0.84 % | 0.82 % | 0.88 % | 0.48 % | 0.93 % | ||||||||||||||
Return on average equity | 4.23 % | 7.80 % | 11.02 % | 10.75 % | 11.60 % | 6.00 % | 12.07 % | ||||||||||||||
Average yield on interest-earning assets | 6.16 % | 6.07 % | 6.16 % | 6.04 % | 5.76 % | 6.12 % | 5.66 % | ||||||||||||||
Average rate paid on interest-bearing liabilities | 4.57 % | 4.51 % | 4.49 % | 4.24 % | 3.89 % | 4.54 % | 3.58 % | ||||||||||||||
Average interest rate spread | 1.59 % | 1.56 % | 1.67 % | 1.80 % | 1.87 % | 1.58 % | 2.08 % | ||||||||||||||
Net interest margin, fully taxable equivalent | 2.39 % | 2.36 % | 2.44 % | 2.50 % | 2.52 % | 2.37 % | 2.72 % | ||||||||||||||
Efficiency ratio (3) | 56.35 % | 58.96 % | 52.75 % | 52.13 % | 57.55 % | 57.64 % | 57.35 % | ||||||||||||||
Noninterest expense to average assets | 1.42 % | 1.43 % | 1.33 % | 1.38 % | 1.50 % | 1.43 % | 1.59 % | ||||||||||||||
Capital | |||||||||||||||||||||
Tier 1 capital leverage ratio (1) | 10.11 % | 10.05 % | 9.76 % | 9.83 % | 9.82 % | 10.11 % | 9.82 % | ||||||||||||||
Total risk-based capital ratio (1) | 13.48 % | 13.50 % | 13.30 % | 13.36 % | 13.24 % | 13.48 % | 13.24 % | ||||||||||||||
Tier 1 risk-based capital ratio (1) | 12.23 % | 12.31 % | 12.17 % | 12.22 % | 12.15 % | 12.23 % | 12.15 % | ||||||||||||||
Common equity tier 1 capital to risk weighted assets (1) | 12.23 % | 12.31 % | 12.17 % | 12.22 % | 12.15 % | 12.23 % | 12.15 % | ||||||||||||||
Equity to total assets at end of period | 7.82 % | 7.75 % | 7.55 % | 7.59 % | 7.51 % | 7.82 % | 7.51 % | ||||||||||||||
Book value per common share | $ | 24.17 | $ | 24.17 | $ | 23.74 | $ | 23.10 | $ | 22.49 | $ | 24.17 | $ | 22.49 | |||||||
Tangible book value per common share (2) | $ | 24.17 | $ | 24.17 | $ | 23.74 | $ | 23.10 | $ | 22.49 | $ | 24.17 | $ | 22.49 | |||||||
Period-end market value per common share | $ | 18.76 | $ | 19.97 | $ | 19.50 | $ | 16.75 | $ | 15.00 | $ | 18.76 | $ | 15.00 | |||||||
Period-end common shares outstanding | 6,387,655 | 6,338,115 | 6,545,560 | 6,549,609 | 6,550,950 | 6,387,655 | 6,550,950 | ||||||||||||||
Average basic common shares outstanding | 6,256,457 | 6,329,898 | 6,433,568 | 6,429,198 | 6,418,305 | 6,293,178 | 6,410,624 | ||||||||||||||
Average diluted common shares outstanding | 6,256,457 | 6,357,298 | 6,469,862 | 6,456,575 | 6,433,623 | 6,306,878 | 6,431,508 | ||||||||||||||
Asset Quality | |||||||||||||||||||||
Nonperforming loans | $ | 10,909 | $ | 7,895 | $ | 5,722 | $ | 4,594 | $ | 799 | $ | 10,909 | $ | 799 | |||||||
Nonperforming loans to total loans | 0.64 % | 0.46 % | 0.33 % | 0.27 % | 0.05 % | 0.64 % | 0.05 % | ||||||||||||||
Nonperforming assets to total assets | 0.53 % | 0.39 % | 0.28 % | 0.23 % | 0.04 % | 0.53 % | 0.04 % | ||||||||||||||
Allowance for credit losses on loans and | 1.13 % | 1.06 % | 0.99 % | 1.02 % | 0.97 % | 1.13 % | 0.97 % | ||||||||||||||
Allowance for credit losses on loans and | 176.78 % | 230.50 % | 294.74 % | 370.74 % | 1997.50 % | 176.78 % | 1997.50 % | ||||||||||||||
Net charge-offs (recoveries) | $ | 2,108 | $ | (16) | $ | 623 | $ | 126 | $ | (108) | $ | 2,092 | $ | (103) | |||||||
Annualized net charge-offs (recoveries) | 0.49 % | 0.00 % | 0.15 % | 0.03 % | (0.03 %) | 0.25 % | (0.01 %) | ||||||||||||||
Average Balances | |||||||||||||||||||||
Loans | $ | 1,704,118 | $ | 1,710,057 | $ | 1,699,323 | $ | 1,657,303 | $ | 1,642,961 | $ | 1,707,088 | $ | 1,623,207 | |||||||
Assets | $ | 1,997,376 | $ | 2,004,194 | $ | 2,023,471 | $ | 1,957,019 | $ | 1,909,354 | $ | 2,000,785 | $ | 1,867,082 | |||||||
Stockholders' equity | $ | 160,205 | $ | 157,359 | $ | 153,724 | $ | 150,012 | $ | 145,569 | $ | 158,782 | $ | 143,689 | |||||||
(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 MEASURES
The following non-GAAP financial measures used by the Company provide information useful to investors in understanding the Company's operating performance and trends and facilitate comparisons with the performance of peers. The following tables summarize the non-GAAP financial measures derived from amounts reported in the Company's consolidated financial statements:
Pre-provision, pre-tax net revenue ("PPNR"), | ||||||||||||||
PPNR Return on Average Assets and PPNR Return on Average Equity | ||||||||||||||
Three Months Ended | Six months ended | |||||||||||||
June 30, | March 31, | June 30, | June 30, | |||||||||||
2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||
Net income | $ | 1,695 | $ | 3,070 | $ | 4,223 | $ | 4,765 | $ | 8,671 | ||||
Add: Provision for credit losses | 3,561 | 1,237 | 12 | 4,798 | 249 | |||||||||
Add: Income tax expense | 237 | 695 | 1,056 | 932 | 2,132 | |||||||||
Pre-provision, pre-tax net revenue | $ | 5,493 | $ | 5,002 | $ | 5,291 | $ | 10,495 | $ | 11,052 | ||||
Average Assets | $ | 1,997,376 | $ | 2,004,194 | $ | 1,909,354 | $ | 2,000,785 | $ | 1,867,082 | ||||
Average Stockholders' Equity | $ | 160,205 | $ | 157,359 | $ | 145,569 | $ | 158,782 | $ | 143,689 | ||||
Return on average assets (GAAP) (1) | 0.34 % | 0.61 % | 0.88 % | 0.48 % | 0.93 % | |||||||||
PPNR return on average assets (Non-GAAP) (2) | 1.10 % | 1.00 % | 1.11 % | 1.05 % | 1.18 % | |||||||||
Return on average equity (GAAP) (3) | 4.23 % | 7.80 % | 11.60 % | 6.00 % | 12.07 % | |||||||||
PPNR return on average equity (Non-GAAP)(4) | 13.71 % | 12.71 % | 14.54 % | 13.22 % | 15.38 % | |||||||||
(1) Annualized net income divided by average assets | ||||||||||||||
(2) Annualized PPNR divided by average assets | ||||||||||||||
(3) Annualized net income divided by average stockholders' equity | ||||||||||||||
(4) Annualized PPNR divided by average stockholders' equity | ||||||||||||||
Net Income Adjusted for Impact of Additional Specific Reserves on Noncore Assets ("Adjusted Core Net Income"), | ||
Adjusted Return on Average Assets, Adjusted Return on Average Equity and Adjusted Diluted Earnings Per Share | ||
Three Months Ended | ||
June 30, 2024 | ||
Net income | $ | 1,695 |
Add: Additional specific reserves on noncore assets | 3,133 | |
Less: Income tax effect of additional specific reserves on noncore assets | (658) | |
Adjusted Core Net Income | $ | 4,170 |
Average Assets | $ | 1,997,376 |
Less: Average noncore assets (a) | (127,119) | |
Adjusted Average Assets | $ | 1,870,257 |
Average Stockholders' Equity | $ | 160,205 |
Add: Impact of additional specific reserves on noncore assets | 2,475 | |
Adjusted Average Stockholders' Equity | $ | 162,680 |
Diluted earnings per common share (EPS) (GAAP) | $ | 0.26 |
After tax impact of additional specific reserves on noncore assets | 0.39 | |
Adjusted Diluted EPS | $ | 0.65 |
Return on average assets (GAAP) (b) | 0.34 % | |
Adjusted return on average assets (Non-GAAP) (c) | 0.89 % | |
Return on average equity (GAAP) (d) | 4.23 % | |
Adjusted return on average equity (Non-GAAP)(e) | 10.25 % | |
(a) Noncore assets consist of loans for which the Company doesn't have an underlying customer relationship or an expectation or intent to build a relationship. | ||
(b) Annualized net income divided by average assets | ||
(c) Annualized Adjusted Core net income divided by Adjusted average assets | ||
(d) Annualized net income divided by average stockholders' equity | ||
(e) Annualized Adjusted Core net income divided by Adjusted average stockholders' equity | ||
Credit Quality Metrics on Core Loan Portfolio | ||
At | ||
June 30, 2024 | ||
Gross loans (GAAP) | $ | 1,706,980 |
Less: Noncore loans (a) | (127,119) | |
Gross core loans (Non-GAAP) | $ | 1,579,861 |
Loans 30 or more days past due (GAAP) | $ | 7,620 |
Less: Noncore loans 30 or more days past due | (4,000) | |
Core loans more than 30 days past due (Non-GAAP) | $ | 3,620 |
Loans 30 or more days past due as a percent of gross loans (GAAP) | 0.45 % | |
Core loans 30 or more days past due as a percent of gross core portfolio loans (Non-GAAP) | 0.23 % | |
Total assets (GAAP) | $ | 2,040,634 |
Less: Noncore assets (a) | (127,119) | |
Total Core Assets (Non-GAAP) | $ | 1,913,515 |
Assets designated as substandard, doubtful or loss ("Classified Assets") (GAAP) | $ | 9,808 |
Less: Classified noncore assets (b) | (7,335) | |
Classified Core Assets (Non-GAAP) | $ | 2,473 |
Classified assets as a percent of total assets (GAAP) | 0.48 % | |
Classified core assets as a percent of total core assets (Non-GAAP) | 0.13 % | |
(a) Noncore assets consist of loans for which the Company doesn't have an underlying customer relationship or an expectation or intent to build a relationship. | ||
(b) Classified noncore assets consist of noncore assets with a risk rating of substandard, doubtful or loss | ||
View original content:https://www.prnewswire.com/news-releases/cf-bankshares-inc-parent-of-cfbank-na-reports-results-for-the-2nd-quarter-2024-302215639.html
SOURCE CF Bankshares Inc.
FAQ
What was CF Bankshares Inc.'s (CFBK) net income for Q2 2024?
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