CF BANKSHARES INC., PARENT OF CFBANK NA, REPORTS RESULTS FOR THE 2nd QUARTER 2024
Second Quarter 2024 and YTD Highlights
- Net income for Q2 2024 was
$1.7 million ($0.26 earnings per diluted common share). Pre-provision, pre-tax net revenue (PPNR) for Q2 2024 was$5.5 million . Q2 2024 net income was negatively impacted by$3.1 million of additional specific reserves placed on two loan participations acquired from regional banks. - Return on Average Equity (ROE) was 4.23% and PPNR ROE was 13.71% for Q2 2024, while Return on Average Assets (ROA) was 0.34% and PPNR ROA was 1.10%.
- 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 million during Q2 2024. Loan and business pipelines along with quality new business opportunities in our four major regional markets (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 per share on its common stock and a corresponding cash dividend of$6.00 per share on its Series D Preferred Stock. The dividend was paid onJuly 19, 2024 to shareholders of record as of the close of business onJuly 11, 2024 .
CEO and Board Chair Commentary
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
Our core customer loan book continues to perform well as evidenced by the following metrics as of
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 64% year over year. Additionally, as of this quarter end, we now have a fully staffed, well-seasoned Commercial Banking team in our Indianapolis Market.
We remain bullish about our business opportunities for the second half of 2024 and believe Our Best is Yet Ahead!"
Overview of Results
Net income for the three months ended
Net income for the six months ended
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
Noninterest income for the quarter ended
The following table represents the notional amount of loans sold during the three months ended
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Three Months ended |
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Notional amount of loans sold |
$ |
10,837 |
|
$ |
9,037 |
|
$ |
3,171 |
Noninterest Expense
Noninterest expense for the quarter ended
Noninterest expense for the quarter ended
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
The following table presents the recorded investment in loans and leases for certain non-owner-occupied loan types (in thousands).
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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 |
|
|
17,139 |
|
16,348 |
|
|
318 |
|
346 |
Multi-family |
|
180,511 |
|
189,539 |
Office |
|
40,312 |
|
44,819 |
Retail |
|
53,397 |
|
53,701 |
Other |
|
30,856 |
|
31,316 |
*
Asset Quality
Nonaccrual loans were
The increase in nonaccrual loans when compared to
The allowance for credit losses on loans and leases totaled
There was
Deposits
Deposits totaled
At
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
Additional information about the Company and
FORWARD LOOKING STATEMENTS
This press release and other materials we have filed or may file with 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.
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Consolidated Statements of Income |
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($ in thousands, except share data) |
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(unaudited) |
Three months ended |
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Six months ended |
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2024 |
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2023 |
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% |
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2024 |
|
2023 |
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% |
||||
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 % |
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Provision for credit losses |
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Provision for credit losses-loans |
|
3,195 |
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|
(63) |
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n/m |
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|
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 % |
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Noninterest income |
|
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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 |
|
- |
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|
- |
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n/m |
|
|
167 |
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|
- |
|
n/m |
Swap fee income |
|
- |
|
|
142 |
|
-100 % |
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|
- |
|
|
172 |
|
-100 % |
Other |
|
508 |
|
|
417 |
|
22 % |
|
|
597 |
|
|
805 |
|
-26 % |
Noninterest income |
|
1,218 |
|
|
978 |
|
25 % |
|
|
2,123 |
|
|
1,697 |
|
25 % |
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Noninterest expense |
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Salaries and employee benefits |
|
3,570 |
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|
3,778 |
|
-6 % |
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|
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 |
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|
164 |
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-13 % |
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|
268 |
|
|
334 |
|
-20 % |
Postage, printing, and supplies |
|
42 |
|
|
37 |
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14 % |
|
|
86 |
|
|
92 |
|
-7 % |
Advertising and marketing |
|
38 |
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|
71 |
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-46 % |
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|
52 |
|
|
254 |
|
-80 % |
Telephone |
|
52 |
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|
72 |
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-28 % |
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|
103 |
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|
136 |
|
-24 % |
Loan expenses |
|
259 |
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|
187 |
|
39 % |
|
|
706 |
|
|
359 |
|
97 % |
Depreciation |
|
122 |
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|
148 |
|
-18 % |
|
|
252 |
|
|
281 |
|
-10 % |
|
|
499 |
|
|
519 |
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-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 % |
|
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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) |
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|
- |
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n/m |
|
|
(121) |
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|
- |
|
n/m |
Net Income attributable to common stockholders |
$ |
1,641 |
|
$ |
4,223 |
|
-61 % |
|
$ |
4,644 |
|
$ |
8,671 |
|
-46 % |
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Share Data |
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Basic earnings per common share |
$ |
0.26 |
|
$ |
0.66 |
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$ |
0.74 |
|
$ |
1.35 |
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|
Diluted earnings per common share |
$ |
0.26 |
|
$ |
0.66 |
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$ |
0.74 |
|
$ |
1.35 |
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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 |
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n/m - not meaningful |
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Consolidated Statements of Financial Condition |
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($ in thousands) |
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|||||
(unaudited) |
2024 |
|
2024 |
|
2023 |
|
2023 |
|
2023 |
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Assets |
|
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Cash and cash equivalents |
$ |
241,775 |
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$ |
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 |
|
|
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|
Liabilities and Stockholders' Equity |
|
|
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|
|
|
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|
|
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 |
|
|
|
|
|
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Average Balance Sheet and Yield Analysis |
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||
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For Three Months Ended |
|||||||||||||||||||||||||
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|||||||||||||||||||||
|
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) |
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Interest-earning assets: |
|
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|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
(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 |
(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 |
|||||||||||
|
|
|
|
|
|
|
|
|||||||
|
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 |
|
|
|
|
|
|
|
|
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(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 |
|
|
|
|
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 |
|
|
|
|
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