CF BANKSHARES INC. [CFBK] Filings

10-Q 1 cfbk-20220930x10q.htm 10-Q cfbk-20220930x10q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark one)

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2022

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES

EXCHANGE ACT OF 1934

For the transition period from __________ to______________

Commission File Number 0-25045

CF BANKSHARES INC.

(Exact name of registrant as specified in its charter)


Delaware	34-1877137
(State or other jurisdiction of	(IRS Employer
incorporation or organization)	Identification No.)

7000 North High St., Worthington, Ohio 43085

(Address of principal executive offices) (Zip Code)

(614) 334-7979

(Registrant’s telephone number, including area code)

______________________________________

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
(Voting) Common Stock, $.01 par value	CFBK	The NASDAQ Capital Market

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes [X] No [ ]

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes [X] No [ ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer [ ] Accelerated Filer [X] Non-accelerated Filer [ ] Smaller Reporting Company [X]

Emerging Growth Company [ ]

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes [ ] No [X]

As of November 1, 2022, there were 5,225,292 shares of the registrant’s (Voting) Common Stock outstanding and 1,260,700 shares of the registrant’s Non-Voting Common Stock outstanding.

Table of Contents

CF BANKSHARES INC.

INDEX


PART I. Financial Information		Page

Item 1. Financial Statements		3

	Consolidated Balance Sheets as of September 30, 2022 (unaudited) and December 31, 2021	3

	Consolidated Statements of Income for the three and nine months ended September 30, 2022 and 2021 (unaudited)	4

	Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2022 and 2021 (unaudited)	5

	Consolidated Statements of Changes in Stockholders’ Equity for the three and nine months ended September 30, 2022 and 2021 (unaudited)	6

	Consolidated Statements of Cash Flows for the ninemonths ended September 30, 2022 and 2021 (unaudited)	8

	Notes to Consolidated Financial Statements (three and nine months ended September 30, 2022 and 2021 (unaudited))	10

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations		39

Item 3. Quantitative and Qualitative Disclosures About Market Risk		53

Item 4. Controls and Procedures		54

PART II. Other Information		55

Item 1. Legal Proceedings		55

Item 1A. Risk Factors		55

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds		55

Item 3. Defaults Upon Senior Securities		55

Item 4. Mine Safety Disclosures		55

Item 5. Other Information		55

Item 6. Exhibits		56

Signatures		57

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CF BANKSHARES INC.

CONSOLIDATED BALANCE SHEETS

(Dollars in thousands except per share data)


	September 30,		December 31,
	2022		2021
	(unaudited)
ASSETS
Cash and cash equivalents	$	198,066	$	166,591
Interest-bearing deposits in other financial institutions		100		100
Securities available for sale		11,436		16,347
Equity securities		5,000		5,000
Loans held for sale, at fair value		-		27,988
Loans and leases, net of allowance of $15,687 and $15,508		1,473,883		1,214,149
FHLB and FRB stock		7,633		7,315
Premises and equipment, net		3,792		5,869
Other assets held for sale		1,930		-
Operating lease right-of-use assets		1,499		1,925
Bank owned life insurance		26,189		25,743
Accrued interest receivable and other assets		34,514		24,562
Total assets	$	1,764,042	$	1,495,589

LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits
Noninterest bearing	$	270,945	$	284,935
Interest bearing		1,219,038		961,417
Total deposits		1,489,983		1,246,352
FHLB advances and other debt		102,803		89,727
Advances by borrowers for taxes and insurance		2,573		2,752
Operating lease liabilities		1,588		2,032
Accrued interest payable and other liabilities		17,311		14,513
Subordinated debentures		14,912		14,883
Total liabilities		1,629,170		1,370,259

Commitments and contingent liabilities		-		-

Stockholders' equity
Common stock, $0.01 par value;
shares authorized: 9,090,909, including 1,260,700 shares of non-voting common stock
Voting common stock, $0.01 par value; shares issued: 5,567,377 at September 30, 2022 and 5,485,980 at December 31, 2021		56		55
Non-voting common stock, $0.01 par value;
shares issued: 1,260,700 at September 30, 2022 and 1,260,700 at December 31, 2021		13		13
Series C preferred stock, $0.01 par value; 12,607 shares authorized;
0 issued at September 30, 2022 and 0 shares issued at December 31, 2021		-		-
Additional paid-in capital		89,307		88,528
Retained earnings		56,742		44,084
Accumulated other comprehensive loss		(1,654)		(170)
Treasury stock, at cost; 360,799 shares of voting common stock at September 30, 2022 and 246,432 shares of voting common stock at December 31, 2021		(9,592)		(7,180)
Total stockholders' equity		134,872		125,330
Total liabilities and stockholders' equity	$	1,764,042	$	1,495,589

See accompanying notes to consolidated financial statements.

Table of Contents

CF BANKSHARES INC.

CONSOLIDATED STATEMENTS OF INCOME

(Dollars in thousands except per share data)

(Unaudited)


	Three months ended				Nine months ended
	September 30,				September 30,
	2022		2021		2022		2021
Interest and dividend income
Loans and leases, including fees	$	16,876	$	12,397	$	43,746	$	38,452
Securities		219		230		664		529
FHLB and FRB stock dividends		98		55		238		167
Federal funds sold and other		813		21		1,215		73
		18,006		12,703		45,863		39,221
Interest expense
Deposits		3,992		1,777		8,177		6,382
FHLB advances and other debt		446		289		1,340		1,096
Subordinated debentures		252		224		711		673
		4,690		2,290		10,228		8,151
Net interest income		13,316		10,413		35,635		31,070
Provision for loan and lease losses		150		-		150		(1,600)
Net interest income after provision for loan and lease losses		13,166		10,413		35,485		32,670

Noninterest income
Service charges on deposit accounts		268		213		823		612
Net gains (losses) on sales of residential mortgage loans		-		(268)		678		5,348
Net gains (losses) on sales of commercial loans		134		(1)		277		1,158
Swap fee income		24		-		42		182
Gain on redemption of life insurance policies		-		-		-		383
Earnings on bank owned life insurance		151		142		446		370
Gain on sale of deposits		-		1,893		-		1,893
Other		128		98		293		312
		705		2,077		2,559		10,258
Noninterest expense
Salaries and employee benefits		4,112		4,250		11,311		13,410
Occupancy and equipment		324		254		955		835
Data processing		1,126		520		2,175		1,580
Franchise and other taxes		178		241		839		723
Professional fees		896		959		2,148		3,555
Director fees		171		156		465		466
Postage, printing and supplies		45		34		126		120
Advertising and marketing		108		45		287		2,572
Telephone		66		65		180		191
Loan expenses		296		99		502		187
Depreciation		134		108		375		311
FDIC premiums		312		476		690		1,095
Regulatory assessment		70		66		201		196
Other insurance		45		45		135		113
Impairment of property and equipment		570		-		570		-
Other		146		111		389		311
		8,599		7,429		21,348		25,665
Income before incomes taxes		5,272		5,061		16,696		17,263
Income tax expense		1,023		985		3,203		3,277
Net income	$	4,249	$	4,076	$	13,493	$	13,986

Earnings per common share:
Basic	$	0.66	$	0.63	$	2.11	$	2.14
Diluted	$	0.65	$	0.61	$	2.06	$	2.10

See accompanying notes to consolidated financial statements.

Table of Contents

CF BANKSHARES INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Dollars in thousands except per share data)

(Unaudited)


	Three months ended				Nine months ended
	September 30,				September 30,
	2022		2021		2022		2021
Net income	$	4,249	$	4,076	$	13,493	$	13,986
Other comprehensive loss:
Unrealized holding losses arising during the period related to securities available for sale, net of tax of ($57) and ($3), and ($394) and ($15)		(217)		(13)		(1,484)		(59)
Other comprehensive loss, net of tax		(217)		(13)		(1,484)		(59)
Comprehensive income	$	4,032

CF BANKSHARES INC. [CFBK] Filings
10-Q	[2022-11-09]
10-Q	[2022-08-09]
10-Q	[2022-05-10]
10-K	[2022-03-16]
10-Q	[2021-11-15]
10-Q	[2021-08-16]
10-Q	[2021-05-12]
10-K	[2021-03-23]
10-Q	[2020-11-10]
10-Q	[2020-08-12]
10-Q	[2020-05-13]
10-K	[2020-03-16]
10-Q	[2019-11-12]
10-Q	[2019-08-12]
10-Q	[2019-05-10]
10-K	[2019-03-15]
10-Q	[2018-11-09]
10-Q	[2018-08-09]
10-Q	[2018-05-10]
10-K	[2018-03-15]
10-Q	[2017-11-09]
10-Q	[2017-08-09]
10-Q	[2017-05-10]
10-K	[2017-03-15]
10-Q	[2016-11-09]
10-Q	[2016-08-10]
10-Q	[2016-05-10]
10-K	[2016-03-23]
10-Q	[2015-11-12]
10-Q	[2015-08-13]
10-Q	[2015-05-14]
10-K	[2015-03-27]
10-Q	[2014-11-12]
10-Q	[2014-08-14]
10-Q	[2014-05-15]
10-K	[2014-03-31]
10-Q	[2013-11-08]
10-Q	[2013-08-07]
10-Q	[2013-05-15]
10-K	[2013-04-01]
10-Q	[2012-11-14]
10-Q	[2012-08-14]
10-Q	[2012-05-15]
10-K	[2012-03-30]