CF BANKSHARES INC. [CFBK] Filings

10-Q 1 cfbk-20230930x10q.htm 10-Q cfbk-20230930x10q

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, 2023

[ ] 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.)

4960 E. Dublin Granville Road, Suite #400, Columbus, Ohio 43081

(Address of principal executive offices) (Zip Code)

(614) 334-7979

(Registrant’s telephone number, including area code)

______________N/A________________________

(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 [ ] Non-accelerated Filer [X] 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, 2023, there were 5,294,363 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, 2023 (unaudited) and December 31, 2022	3

	Consolidated Statements of Income for the three and nine months ended September 30, 2023 and 2022 (unaudited)	4

	Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2023 and 2022 (unaudited)	5

	Consolidated Statements of Changes in Stockholders’ Equity for the three and nine months ended September 30, 2023 and 2022 (unaudited)	6

	Consolidated Statements of Cash Flows for the ninemonths ended September 30, 2023 and 2022 (unaudited)	8

	Notes to Consolidated Financial Statements (three and nine months ended September 30, 2023 and 2022 (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		52

Item 4. Controls and Procedures		53

PART II. Other Information		54

Item 1. Legal Proceedings		54

Item 1A. Risk Factors		54

Item 2. Unregistered Sales of Equity Securities,Use of Proceeds, and Issuer Purchases of Equity Securities		54

Item 3. Defaults Upon Senior Securities		54

Item 4. Mine Safety Disclosures		54

Item 5. Other Information		54

Item 6. Exhibits		55

Signatures		56

Table of Contents

CF BANKSHARES INC.

CONSOLIDATED BALANCE SHEETS

(Dollars in thousands except per share data)


	September 30,		December 31,
	2023		2022
	(unaudited)
ASSETS
Cash and cash equivalents	$	229,763	$	151,787
Interest-bearing deposits in other financial institutions		100		100
Securities available for sale		8,480		10,442
Equity securities		5,000		5,000
Loans held for sale, at fair value		1,355		580
Loans and leases, net of allowance for credit losses on loans of $17,032 and $16,062		1,659,774		1,572,255
FHLB and FRB stock		8,499		7,942
Premises and equipment, net		3,940		3,778
Other assets held for sale		-		1,930
Operating lease right-of-use assets		5,138		1,357
Bank owned life insurance		26,103		25,641
Accrued interest receivable and other assets		44,300		39,362
Total assets	$	1,992,452	$	1,820,174

LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits
Noninterest bearing	$	214,334	$	263,241
Interest bearing		1,470,659		1,264,681
Total deposits		1,684,993		1,527,922
FHLB advances and other debt		109,987		109,461
Advances by borrowers for taxes and insurance		1,737		3,513
Operating lease liabilities		5,216		1,438
Accrued interest payable and other liabilities		24,298		23,670
Subordinated debentures		14,951		14,922
Total liabilities		1,841,182		1,680,926

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: 5,660,504 at September 30, 2023 and 5,601,289 at December 31, 2022		57		56
Non-voting common stock, $0.01 par value;
shares issued: 1,260,700 at September 30, 2023 and December 31, 2022		13		13
Additional paid-in capital		90,731		89,813
Retained earnings		72,668		61,095
Accumulated other comprehensive loss		(2,384)		(2,037)
Treasury stock, at cost; 371,595 shares of voting common stock at September 30, 2023 and 365,165 shares of voting common stock at December 31, 2022		(9,815)		(9,692)
Total stockholders' equity		151,270		139,248
Total liabilities and stockholders' equity	$	1,992,452	$	1,820,174

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,
	2023		2022		2023		2022
Interest and dividend income
Loans and leases, including fees	$	25,121	$	16,876	$	71,143	$	43,746
Securities		101		219		529		664
FHLB and FRB stock dividends		166		98		425		238
Federal funds sold and other		2,778		813		6,470		1,215
		28,166		18,006		78,567		45,863
Interest expense
Deposits		15,421		3,992		39,500		8,177
FHLB advances and other debt		783		446		2,314		1,340
Subordinated debentures		295		252		867		711
		16,499		4,690		42,681		10,228
Net interest income		11,667		13,316		35,886		35,635
Provision for credit losses
Provision for credit losses-loans		1,198		150		1,402		150
Provision for credit losses-unfunded commitments		(5)		-		40		-
		1,193		150		1,442		150
Net interest income after provision for credit losses		10,474		13,166		34,444		35,485

Noninterest income
Service charges on deposit accounts		396		268		1,079		823
Net gains on sales of residential mortgage loans		48		-		85		678
Net gains on sales of commercial loans		12		134		12		277
Swap fee income		444		24		616		42
Earnings on bank owned life insurance		157		151		462		446
Other		244		128		744		293
		1,301		705		2,998		2,559
Noninterest expense
Salaries and employee benefits		3,420		4,112		11,184		11,311
Occupancy and equipment		427		324		1,264		955
Data processing		532		1,126		1,568		2,175
Franchise and other taxes		308		178		935		839
Professional fees		635		896		1,873		2,148
Director fees		162		171		496		465
Postage, printing and supplies		31		45		123		126
Advertising and marketing		53		108		307		287
Telephone		61		66		197		180
Loan expenses		151		296		510		502
Depreciation		145		134		426		375
FDIC premiums		568		312		1,590		690
Regulatory assessment		63		70		181		201
Other insurance		55		45		154		135
Impairment of property and equipment		-		570		-		570
Other		149		146		816		389
		6,760		8,599		21,624		21,348
Income before incomes taxes		5,015		5,272		15,818		16,696
Income tax expense		984		1,023		3,116		3,203
Net income	$	4,031	$	4,249	$	12,702	$	13,493

Earnings per common share:
Basic	$	0.63	$	0.66	$	1.98	$	2.11
Diluted	$	0.62	$	0.65	$	1.97	$	2.06

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,
	2023		2022		2023	2022
Net income	$	4,031	$	4,249

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10-Q	[2014-11-12]
10-Q	[2014-08-14]
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