CF BANKSHARES INC., PARENT OF CFBANK NA, REPORTS RESULTS FOR THE 4TH QUARTER AND FULL YEAR 2023.
- Net income of $4.2 million for Q4 2023
- Assets topped $2 billion
- Noninterest-bearing deposits increased by 10.1%
- Book value per share increased to $23.74
- Declared a cash dividend of $0.06 per share
- CEO highlighted a 52.75% efficiency ratio and increased business opportunities
- Chairman mentioned stock's outperformance and insider ownership above 40%
- Net interest income increased by 0.7%
- Noninterest expense decreased by 0.2%
- Effective tax rate was 18.0%
- Net loans and leases increased by 2.1%
- Deposits increased by 3.5%
- Noninterest-bearing deposit accounts increased by 10.1%
- Stockholders' equity increased by 2.7%
- None.
Insights
The financial results of CF Bankshares Inc. for Q4 and the full year of 2023 demonstrate a stable performance with a net income of $4.2 million for Q4 and $16.9 million for the full year. The slight dip in net income compared to the previous year, from $18.2 million to $16.9 million, could be attributed to an increase in provisions for credit losses and a challenging net interest margin (NIM) environment.
Despite the challenges, the bank's efficiency ratio of 52.75% for Q4 is noteworthy as it indicates effective cost management. Additionally, the growth in total assets to over $2 billion and an increase in noninterest-bearing deposits by 10.1% suggest a strong liquidity position and customer trust. However, the decline in net interest income by 10.6% year-over-year, alongside a decrease in NIM from 3.08% to 2.44%, reflects the pressure from rising interest rates and competition for deposits.
Investors should consider the bank's strategic positioning, with a focus on business opportunities and fee income lines, as well as its ability to attract top banking talent. These factors, combined with the reported insider ownership aligning interests with shareholders, could be seen as positive indicators for future performance.
CFBank's strategic move into the top ten Central Ohio Banks by deposits and surpassing the $1 billion deposit level in Central Ohio is a significant market development. This achievement indicates a growing market presence and competitive edge in a region with substantial economic activity.
The bank's emphasis on fee income business lines, such as mortgage lending, treasury management fees and credit card fee revenue, is a diversification strategy that could mitigate the impact of fluctuating interest rates on earnings. The increase in noninterest income by 58.7% compared to the same quarter last year showcases the potential of this revenue stream.
Furthermore, the bank's ability to attract business from regional competitors reveals a competitive dynamic in the market that could lead to increased market share. However, the bank's exposure to the transportation sector, specifically trucking and the associated charge-offs, highlight the need for a cautious approach to sector-specific lending risks.
CFBank's financial results must be contextualized within the broader economic environment, characterized by rising interest rates and inflationary pressures. The bank's increase in interest expense by 105.3% year-over-year is indicative of the cost of funds in a rising rate environment, which has compressed the net interest margin.
The bank's performance in asset quality, with nonperforming loans at 0.33% of total loans, remains robust and suggests effective risk management practices. However, the increase in nonaccrual loans year-over-year warrants monitoring, as it may signal emerging credit risks in a potentially slowing economy.
The bank's forward-looking statements regarding the expected challenges in maintaining the net interest margin, while remaining nimble, reflect an understanding of the economic uncertainties ahead. Investors may find reassurance in the bank's proactive approach to managing through interest rate changes and its focus on operational efficiency.
Fourth Quarter and Full Year 2023 Highlights
- Net Income was
$4.2 million $0.65 $16.9 million $2.63 - Pre-provision, pre-tax net revenue ("PPNR") for the fourth quarter of 2023 was
$6.0 million $23.3 million - For the fourth quarter of 2023, Return on Average Equity (ROE) was
11.02% and PPNR ROE was15.72% , while Return on Average Assets (ROA) was 0.84% and PPNR ROA was1.19% . - Assets topped
$2 billion - Noninterest-bearing deposits increased
$21.6 million 10.1% , during the fourth quarter of 2023. - Book value per share increased to
$23.74 - Credit quality remains strong with loans more than 30 days past due at
0.11% of total loans and nonperforming loans to total loans of0.33% as of December 31, 2023.
Recent Developments
- On January 3, 2024, the Company's Board of Directors declared a Cash Dividend of
$0.06
CEO and Board Chair Commentary
Timothy T. O'Dell, President and CEO, commented: "Net earnings were
During the quarter, our charge offs were
Our Total Assets topped
Loans grew by
Our fourth quarter Efficiency Ratio was
Deposits during the fourth quarter increased
CFBank moved into the top ten Central Ohio Banks ranked by deposits, topping the
We are highly encouraged by the strength of our increasing Business opportunities early in this new year. These opportunities include loans and deposits as well as Fee income business lines: Salable mortgage lending, Treasury management fees & Credit Card fee revenue, all are gaining increasing business traction.
Additionally, we are attracting top banking talent and quality business from Regional banks and other competitors as we continue building and strengthening our business presence & teams in the four Major Metro Markets we serve (
As we move into 2024, we expect Net Interest Margin (NIM) to remain challenging, however, we are seeing signs of improving stability. Remaining nimble and maintaining efficient operations, positions us to effectively manage through changes in interest rates moving forward, while taking advantage of profitable market growth opportunities.
We are gaining business momentum and raising the bar through consistently executing well the fundamentals of our business and growth plan.
We believe "Our bests are yet Ahead!"
Robert E. Hoeweler, Chairman of the Board, added: "Through January 2024, when measured over a 1-year, 5-year and 10-year period, the performance of our stock has significantly outperformed both the KBW Regional Banking ETF and the S&P Regional Banking ETF. Also, since our recap in late 2012, the CFBK stock price has appreciated
Overview of Results
Net income for the three months ended December 31, 2023 totaled
Net income for the year ended December 31, 2023 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 fourth quarter of 2022 was primarily due to a
Noninterest Income
Noninterest income for the quarter ended December 31, 2023 totaled
Noninterest income for the quarter ended December 31, 2023 increased
The following table represents the notional amount of loans sold during the three months ended December 31, 2023, September 30, 2023, and December 31, 2022 (in thousands).
Three Months ended | ||||||||
December 31, 2023 | September 30, 2023 | December 31, 2022 | ||||||
Notional amount of loans sold | $ | 1,990 | $ | 3,646 | $ | 2,717 | ||
Noninterest Expense
Noninterest expense for the quarter ended December 31, 2023 totaled
Noninterest expense for the quarter ended December 31, 2023 decreased
Income Tax Expense
Income tax expense was
Loans and Loans Held For Sale
Net loans and leases totaled
The increase in net loans and leases from December 31, 2022 was primarily due to a
The following table presents the recorded investment in loans and leases for certain non-owner-occupied loan types (in thousands).
December 31, 2023 | September 30, 2023 | |||
Construction – 1-4 family* | $ | 20,663 | $ | 15,788 |
Construction – Multi-family* | 109,379 | 132,538 | ||
Construction – Non-residential* | 57,459 | 60,647 | ||
Hotel/Motel | 12,284 | 12,360 | ||
Industrial / Warehouse | 52,923 | 27,966 | ||
Land/Land Development | 20,749 | 21,281 | ||
Medical/Healthcare/Senior Housing | 373 | 395 | ||
Multi-family | 164,641 | 154,764 | ||
Office | 41,072 | 42,432 | ||
Retail | 37,239 | 25,049 | ||
Other | 62,226 | 62,275 | ||
*CFBank possesses a core competency and deep expertise in Construction Lending. The construction lending business sector has produced many full banking | ||||
Asset Quality
Nonaccrual loans were
The increase in nonaccrual loans when compared to December 31, 2022 was primarily driven by five commercial loans, totaling
The allowance for credit losses on loans and leases totaled
On January 1, 2023, the Company adopted the current expected credit loss (CECL) model, which resulted in an increase to the reserve for credit losses of
Deposits
Deposits totaled
The increase in deposits when compared to December 31, 2022 is primarily due to a
Noninterest-bearing deposit accounts totaled
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 | Year ended | |||||||||||||
December 31, | December 31, | ||||||||||||||
2023 | 2022 | % change | 2023 | 2022 | % change | ||||||||||
Total interest income | $ | 29,712 | $ | 21,901 | 36 % | $ | 108,279 | 67,764 | 60 % | ||||||
Total interest expense | 17,958 | 8,746 | 105 % | 60,639 | 18,974 | 220 % | |||||||||
Net interest income | 11,754 | 13,155 | -11 % | 47,640 | 48,790 | -2 % | |||||||||
Provision for credit losses | 875 | 637 | 37 % | 2,317 | 787 | 194 % | |||||||||
Net interest income after provision for credit losses | 10,879 | 12,518 | -13 % | 45,323 | 48,003 | -6 % | |||||||||
Noninterest income | |||||||||||||||
Service charges on deposit accounts | 487 | 312 | 56 % | 1,566 | 1,135 | 38 % | |||||||||
Net gain (loss) on sales of residential mortgage loans | 34 | (22) | n/m | 119 | 656 | -82 % | |||||||||
Net gains on sale of commercial loans | 54 | 76 | -29 % | 66 | 353 | -81 % | |||||||||
Swap fee income | 99 | 148 | -33 % | 715 | 190 | 276 % | |||||||||
Gain (loss) on redemption of life insurance | - | (173) | n/m | - | (173) | n/m | |||||||||
Other | 359 | 310 | 16 % | 1,565 | 1,049 | 49 % | |||||||||
Noninterest income | 1,033 | 651 | 59 % | 4,031 | 3,210 | 26 % | |||||||||
Noninterest expense | |||||||||||||||
Salaries and employee benefits | 3,329 | 3,814 | -13 % | 14,513 | 15,125 | -4 % | |||||||||
Occupancy and equipment | 430 | 298 | 44 % | 1,694 | 1,253 | 35 % | |||||||||
Data processing | 604 | 632 | -4 % | 2,172 | 2,807 | -23 % | |||||||||
Franchise and other taxes | 328 | 312 | 5 % | 1,263 | 1,151 | 10 % | |||||||||
Professional fees | 597 | 610 | -2 % | 2,470 | 2,758 | -10 % | |||||||||
Director fees | 162 | 167 | -3 % | 658 | 632 | 4 % | |||||||||
Postage, printing, and supplies | 26 | 57 | -54 % | 149 | 183 | -19 % | |||||||||
Advertising and marketing | 29 | 144 | -80 % | 336 | 431 | -22 % | |||||||||
Telephone | 60 | 69 | -13 % | 257 | 249 | 3 % | |||||||||
Loan expenses | 109 | 192 | -43 % | 619 | 694 | -11 % | |||||||||
Depreciation | 141 | 121 | 17 % | 567 | 496 | 14 % | |||||||||
FDIC premiums | 625 | 440 | 42 % | 2,215 | 1,130 | 96 % | |||||||||
Regulatory assessment | 61 | 71 | -14 % | 242 | 272 | -11 % | |||||||||
Other insurance | 55 | 42 | 31 % | 209 | 177 | 18 % | |||||||||
Impairment of property and equipment | - | - | n/m | - | 570 | n/m | |||||||||
Other | 189 | 304 | -38 % | 1,005 | 693 | 45 % | |||||||||
Noninterest expense | 6,745 | 7,273 | -7 % | 28,369 | 28,621 | -1 % | |||||||||
Income before income taxes | 5,167 | 5,896 | -12 % | 20,985 | 22,592 | -7 % | |||||||||
Income tax expense | 932 | 1,225 | -24 % | 4,048 | 4,428 | -9 % | |||||||||
Net income | $ | 4,235 | $ | 4,671 | -9 % | $ | 16,937 | $ | 18,164 | -7 % | |||||
Share Data | |||||||||||||||
Basic earnings per common share | $ | 0.66 | $ | 0.73 | $ | 2.64 | $ | 2.84 | |||||||
Diluted earnings per common share | $ | 0.65 | $ | 0.72 | $ | 2.63 | $ | 2.78 | |||||||
Average common shares outstanding - basic | 6,433,568 | 6,363,552 | 6,421,088 | 6,397,053 | |||||||||||
Average common shares outstanding - diluted | 6,469,862 | 6,491,820 | 6,447,447 | 6,535,160 | |||||||||||
n/m - not meaningful | |||||||||||||||
Consolidated Statements of Financial Condition | |||||||||||||||
($ in thousands) | Dec 31, | Sept 30, | Jun 30, | Mar 31, | Dec 31, | ||||||||||
(unaudited) | 2023 | 2023 | 2023 | 2023 | 2022 | ||||||||||
Assets | |||||||||||||||
Cash and cash equivalents | $ | 261,595 | $ | 229,763 | $ | 231,600 | $ | 214,248 | $ | 151,787 | |||||
Interest-bearing deposits in other financial institutions | 100 | 100 | 100 | 100 | 100 | ||||||||||
Securities available for sale | 8,092 | 8,480 | 8,966 | 9,661 | 10,442 | ||||||||||
Equity securities | 5,000 | 5,000 | 5,000 | 5,000 | 5,000 | ||||||||||
Loans held for sale | 1,849 | 1,355 | 1,355 | 591 | 580 | ||||||||||
Loans and leases | 1,710,998 | 1,676,806 | 1,647,103 | 1,631,998 | 1,588,317 | ||||||||||
Less allowance for credit losses on loans and leases | (16,865) | (17,032) | (15,960) | (15,915) | (16,062) | ||||||||||
Loans and leases, net | 1,694,133 | 1,659,774 | 1,631,143 | 1,616,083 | 1,572,255 | ||||||||||
FHLB and FRB stock | 8,482 | 8,499 | 8,736 | 9,203 | 7,942 | ||||||||||
Premises and equipment, net | 3,812 | 3,940 | 4,085 | 4,118 | 3,778 | ||||||||||
Other assets held for sale | - | - | - | 1,930 | 1,930 | ||||||||||
Operating lease right of use assets | 5,221 | 5,138 | 5,313 | 5,500 | 1,357 | ||||||||||
Bank owned life insurance | 26,266 | 26,103 | 25,946 | 25,791 | 25,641 | ||||||||||
Accrued interest receivable and other assets | 44,065 | 44,300 | 40,605 | 38,085 | 39,362 | ||||||||||
Total assets | $ | 2,058,615 | $ | 1,992,452 | $ | 1,962,849 | $ | 1,930,310 | $ | 1,820,174 | |||||
Liabilities and Stockholders' Equity | |||||||||||||||
Deposits | |||||||||||||||
Noninterest bearing | $ | 235,916 | $ | 214,334 | $ | 216,966 | $ | 224,096 | $ | 263,241 | |||||
Interest bearing | 1,508,141 | 1,470,659 | 1,443,117 | 1,379,745 | 1,264,681 | ||||||||||
Total deposits | 1,744,057 | 1,684,993 | 1,660,083 | 1,603,841 | 1,527,922 | ||||||||||
FHLB advances and other debt | 109,995 | 109,987 | 109,978 | 136,970 | 109,461 | ||||||||||
Advances by borrowers for taxes and insurance | 2,179 | 1,737 | 2,034 | 2,132 | 3,513 | ||||||||||
Operating lease liabilities | 5,302 | 5,216 | 5,388 | 5,572 | 1,438 | ||||||||||
Accrued interest payable and other liabilities | 26,747 | 24,298 | 23,084 | 23,530 | 23,670 | ||||||||||
Subordinated debentures | 14,961 | 14,951 | 14,941 | 14,932 | 14,922 | ||||||||||
Total liabilities | 1,903,241 | 1,841,182 | 1,815,508 | 1,786,977 | 1,680,926 | ||||||||||
Stockholders' equity | 155,374 | 151,270 | 147,341 | 143,333 | 139,248 | ||||||||||
Total liabilities and stockholders' equity | $ | 2,058,615 | $ | 1,992,452 | $ | 1,962,849 | $ | 1,930,310 | $ | 1,820,174 | |||||
Average Balance Sheet and Yield Analysis | ||||||||||||||||||||||||||
For Three Months Ended | ||||||||||||||||||||||||||
December 31, 2023 | September 30, 2023 | December 31, 2022 | ||||||||||||||||||||||||
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) | $ | 13,412 | $ | 129 | 3.14 % | $ | 13,802 | $ | 101 | 2.40 % | $ | 16,178 | $ | 217 | 4.75 % | |||||||||||
Loans and leases and loans held for sale (3) | 1,682,498 | 26,240 | 6.24 % | 1,642,029 | 25,121 | 6.12 % | 1,522,529 | 19,971 | 5.25 % | |||||||||||||||||
Other earning assets | 222,764 | 3,176 | 5.70 % | 197,434 | 2,778 | 5.63 % | 161,904 | 1,603 | 3.96 % | |||||||||||||||||
FHLB and FRB stock | 8,496 | 167 | 7.86 % | 8,568 | 166 | 7.75 % | 7,810 | 110 | 5.63 % | |||||||||||||||||
Total interest-earning assets | 1,927,170 | 29,712 | 6.16 % | 1,861,833 | 28,166 | 6.04 % | 1,708,421 | 21,901 | 5.12 % | |||||||||||||||||
Noninterest-earning assets | 96,301 | 95,186 | 86,974 | |||||||||||||||||||||||
Total assets | $ | 2,023,471 | $ | 1,957,019 | $ | 1,795,395 | ||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||||
Deposits | $ | 1,475,357 | 16,863 | 4.57 % | $ | 1,430,568 | 15,421 | 4.31 % | $ | 1,260,255 | 7,775 | 2.47 % | ||||||||||||||
FHLB advances and other borrowings | 124,948 | 1,095 | 3.51 % | 124,930 | 1,078 | 3.45 % | 118,083 | 971 | 3.29 % | |||||||||||||||||
Total interest-bearing liabilities | 1,600,305 | 17,958 | 4.49 % | 1,555,498 | 16,499 | 4.24 % | 1,378,338 | 8,746 | 2.54 % | |||||||||||||||||
Noninterest-bearing liabilities | 269,442 | 251,509 | 279,212 | |||||||||||||||||||||||
Total liabilities | 1,869,747 | 1,807,007 | 1,657,550 | |||||||||||||||||||||||
Equity | 153,724 | 150,012 | 137,845 | |||||||||||||||||||||||
Total liabilities and equity | $ | 2,023,471 | $ | 1,957,019 | $ | 1,795,395 | ||||||||||||||||||||
Net interest-earning assets | $ | 326,865 | $ | 306,335 | $ | 330,083 | ||||||||||||||||||||
Net interest income/interest rate spread | $ | 11,754 | 1.67 % | $ | 11,667 | 1.80 % | $ | 13,155 | 2.58 % | |||||||||||||||||
Net interest margin | 2.44 % | 2.50 % | 3.08 % | |||||||||||||||||||||||
Average interest-earning assets | ||||||||||||||||||||||||||
to average interest-bearing liabilities | 120.43 % | 119.69 % | 123.95 % | |||||||||||||||||||||||
(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 year ended | ||||||||||||||||||||
($ in thousands except per share data) | Dec 31, | Sept 30, | Jun 30, | Mar 31, | Dec 31, | December 31, | |||||||||||||||
(unaudited) | 2023 | 2023 | 2023 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||
Earnings and Dividends | |||||||||||||||||||||
Net interest income | $ | 11,754 | $ | 11,667 | $ | 11,486 | $ | 12,733 | $ | 13,155 | $ | 47,640 | $ | 48,790 | |||||||
Provision for credit losses | $ | 875 | $ | 1,193 | $ | 12 | $ | 237 | $ | 637 | $ | 2,317 | $ | 787 | |||||||
Noninterest income | $ | 1,033 | $ | 1,301 | $ | 978 | $ | 719 | $ | 651 | $ | 4,031 | $ | 3,210 | |||||||
Noninterest expense | $ | 6,745 | $ | 6,760 | $ | 7,173 | $ | 7,691 | $ | 7,273 | $ | 28,369 | $ | 28,621 | |||||||
Net income | $ | 4,235 | $ | 4,031 | $ | 4,223 | $ | 4,448 | $ | 4,671 | $ | 16,937 | $ | 18,164 | |||||||
Basic earnings per common share | $ | 0.66 | $ | 0.63 | $ | 0.66 | $ | 0.69 | $ | 0.73 | $ | 2.64 | $ | 2.84 | |||||||
Diluted earnings per common share | $ | 0.65 | $ | 0.62 | $ | 0.66 | $ | 0.68 | $ | 0.72 | $ | 2.63 | $ | 2.78 | |||||||
Dividends declared per share | $ | 0.06 | $ | 0.06 | $ | 0.06 | $ | 0.05 | $ | 0.05 | $ | 0.23 | $ | 0.18 | |||||||
Performance Ratios (annualized) | |||||||||||||||||||||
Return on average assets | 0.84 % | 0.82 % | 0.88 % | 0.98 % | 1.04 % | 0.88 % | 1.11 % | ||||||||||||||
Return on average equity | 11.02 % | 10.75 % | 11.60 % | 12.55 % | 13.55 % | 11.46 % | 13.69 % | ||||||||||||||
Average yield on interest-earning assets | 6.16 % | 6.04 % | 5.76 % | 5.56 % | 5.12 % | 5.89 % | 4.37 % | ||||||||||||||
Average rate paid on interest-bearing liabilities | 4.49 % | 4.24 % | 3.89 % | 3.24 % | 2.54 % | 3.99 % | 1.55 % | ||||||||||||||
Average interest rate spread | 1.67 % | 1.80 % | 1.87 % | 2.32 % | 2.58 % | 1.90 % | 2.82 % | ||||||||||||||
Net interest margin, fully taxable equivalent | 2.44 % | 2.50 % | 2.52 % | 2.93 % | 3.08 % | 2.59 % | 3.15 % | ||||||||||||||
Efficiency ratio | 52.75 % | 52.13 % | 57.55 % | 57.17 % | 52.68 % | 54.90 % | 55.04 % | ||||||||||||||
Noninterest expense to average assets | 1.33 % | 1.38 % | 1.50 % | 1.69 % | 1.62 % | 1.47 % | 1.76 % | ||||||||||||||
Capital | |||||||||||||||||||||
Tier 1 capital leverage ratio (1) | 9.76 % | 9.83 % | 9.82 % | 10.02 % | 9.89 % | 9.76 % | 9.89 % | ||||||||||||||
Total risk-based capital ratio (1) | 13.30 % | 13.36 % | 13.24 % | 12.93 % | 12.74 % | 13.30 % | 12.74 % | ||||||||||||||
Tier 1 risk-based capital ratio (1) | 12.17 % | 12.22 % | 12.15 % | 11.84 % | 11.65 % | 12.17 % | 11.65 % | ||||||||||||||
Common equity tier 1 capital to risk weighted assets (1) | 12.17 % | 12.22 % | 12.15 % | 11.84 % | 11.65 % | 12.17 % | 11.65 % | ||||||||||||||
Equity to total assets at end of period | 7.55 % | 7.59 % | 7.51 % | 7.43 % | 7.65 % | 7.55 % | 7.65 % | ||||||||||||||
Book value per common share | $ | 23.74 | $ | 23.10 | $ | 22.49 | $ | 21.88 | $ | 21.43 | $ | 23.74 | $ | 21.43 | |||||||
Tangible book value per common share (2) | $ | 23.74 | $ | 23.10 | $ | 22.49 | $ | 21.88 | $ | 21.43 | $ | 23.74 | $ | 21.43 | |||||||
Period-end market value per common share | $ | 19.50 | $ | 16.75 | $ | 15.00 | $ | 19.50 | $ | 21.18 | $ | 19.50 | $ | 21.18 | |||||||
Period-end common shares outstanding | 6,545,560 | 6,549,609 | 6,550,950 | 6,549,991 | 6,496,824 | 6,545,560 | 6,496,824 | ||||||||||||||
Average basic common shares outstanding | 6,433,568 | 6,429,198 | 6,418,305 | 6,402,856 | 6,363,552 | 6,421,088 | 6,397,053 | ||||||||||||||
Average diluted common shares outstanding | 6,469,862 | 6,456,575 | 6,433,623 | 6,542,698 | 6,491,820 | 6,447,447 | 6,535,160 | ||||||||||||||
Asset Quality | |||||||||||||||||||||
Nonperforming loans | $ | 5,722 | $ | 4,594 | $ | 799 | $ | 718 | $ | 761 | $ | 5,722 | $ | 761 | |||||||
Nonperforming loans to total loans | 0.33 % | 0.27 % | 0.05 % | 0.04 % | 0.05 % | 0.33 % | 0.05 % | ||||||||||||||
Nonperforming assets to total assets | 0.28 % | 0.23 % | 0.04 % | 0.04 % | 0.04 % | 0.28 % | 0.04 % | ||||||||||||||
Allowance for credit losses on loans and leases to total loans and leases | 0.99 % | 1.02 % | 0.97 % | 0.98 % | 1.01 % | 0.99 % | 1.01 % | ||||||||||||||
Allowance for credit losses on loans and leases to nonperforming loans and leases | 294.74 % | 370.74 % | 1997.50 % | 2216.57 % | 2110.64 % | 294.74 % | 2110.64 % | ||||||||||||||
Net charge-offs (recoveries) | $ | 623 | $ | 126 | $ | (108) | $ | 5 | $ | 262 | $ | 646 | $ | 233 | |||||||
Annualized net charge-offs (recoveries) to average loans | 0.15 % | 0.03 % | (0.03 %) | 0.00 % | 0.07 % | 0.04 % | 0.02 % | ||||||||||||||
Average Balances | |||||||||||||||||||||
Loans | $ | 1,699,323 | $ | 1,657,303 | $ | 1,642,961 | $ | 1,603,237 | $ | 1,537,941 | $ | 1,650,987 | $ | 1,394,838 | |||||||
Assets | $ | 2,023,471 | $ | 1,957,019 | $ | 1,909,354 | $ | 1,824,343 | $ | 1,795,395 | $ | 1,929,169 | $ | 1,629,191 | |||||||
Stockholders' equity | $ | 153,724 | $ | 150,012 | $ | 145,569 | $ | 141,792 | $ | 137,845 | $ | 147,812 | $ | 132,642 | |||||||
(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. | |||||||||||||||||||||
GAAP TO NON-GAAP RECONCILIATION
This press release contains certain non-GAAP disclosures for: (1) Tangible book value per common share, (2) PPNR, (3) PPNR return on average assets and (4) PPNR return on average equity. The Company uses these non-GAAP financial measures to provide meaningful supplemental information regarding the Company's operations performance and to enhance investors' overall understanding of such financial performance. In particular, the use of PPNR is prevalent among banking regulators, investors, and analysts. Accordingly, we disclose the non-GAAP measures in addition to the related GAAP measures of: (1) book value per common share (2) net earnings (3) return on average assets and (4) return on average equity.
The table below presents the reconciliation of these GAAP financial measures to the related non-GAAP financial measures:
Pre-provision, pre-tax net revenue ("PPNR"), | ||||||||||||||
PPNR Return on Average Assets and PPNR Return on Average Equity | ||||||||||||||
Three Months Ended | Year ended | |||||||||||||
December 31, | September 30, | December 31, | December 31, | |||||||||||
2023 | 2023 | 2022 | 2023 | 2022 | ||||||||||
Net income | $ | 4,235 | $ | 4,031 | $ | 4,671 | $ | 16,937 | $ | 18,164 | ||||
Add: Provision for credit losses | 875 | 1,193 | 637 | 2,317 | 787 | |||||||||
Add: Income tax expense | 932 | 984 | 1,225 | 4,048 | 4,428 | |||||||||
Pre-provision, pre-tax net revenue | $ | 6,042 | $ | 6,208 | $ | 6,533 | $ | 23,302 | $ | 23,379 | ||||
Average Assets | $ | 2,023,471 | $ | 1,957,019 | $ | 1,795,395 | $ | 1,929,169 | $ | 1,629,191 | ||||
Average Stockholders' Equity | $ | 153,724 | $ | 150,012 | $ | 137,845 | $ | 147,812 | $ | 132,642 | ||||
Return on average assets (1) | 0.84 % | 0.82 % | 1.04 % | 0.88 % | 1.11 % | |||||||||
PPNR return on average assets (2) | 1.19 % | 1.27 % | 1.46 % | 1.21 % | 1.44 % | |||||||||
Return on average equity (3) | 11.02 % | 10.75 % | 13.55 % | 11.46 % | 13.69 % | |||||||||
PPNR return on average equity (4) | 15.72 % | 16.55 % | 18.96 % | 15.76 % | 17.63 % | |||||||||
(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 | ||||||||||||||
View original content:https://www.prnewswire.com/news-releases/cf-bankshares-inc-parent-of-cfbank-na-reports-results-for-the-4th-quarter-and-full-year-2023-302055273.html
SOURCE CF Bankshares Inc.
FAQ
What was CF Bankshares Inc.'s net income for Q4 2023?
What was the increase in noninterest-bearing deposits during Q4 2023?
What was the book value per share as of December 31, 2023?
What was the cash dividend declared by CF Bankshares Inc.?
What was the increase in net loans and leases from the prior quarter?
