CF Bankshares Inc. Files 10-Q for Q1 2024

TL;DR

<b>CF Bankshares Inc. filed its Q1 2024 10-Q, detailing financial positions as of March 31, 2024.</b>

AI Summary

CF BANKSHARES INC. (CFBK) filed a Quarterly Report (10-Q) with the SEC on May 14, 2024. CF Bankshares Inc. filed a 10-Q report for the period ending March 31, 2024. The filing covers the first quarter of 2024. The company's fiscal year ends on December 31. The filing includes data related to common stock, treasury stock, retained earnings, and additional paid-in capital. Key dates include the period of report as 2024-03-31 and the as-of date as 2024-05-14.

Why It Matters

For investors and stakeholders tracking CF BANKSHARES INC., this filing contains several important signals. This 10-Q filing provides a quarterly update on CF Bankshares Inc.'s financial health and operational status, crucial for investors to assess performance and make informed decisions. The detailed financial statements within the report offer insights into the company's capital structure, including common stock, retained earnings, and treasury stock, which are key indicators of financial stability and shareholder value.

Risk Assessment

Risk Level: low — CF BANKSHARES INC. shows low risk based on this filing. The filing is a standard quarterly report (10-Q) with no immediate red flags, indicating routine financial disclosure.

Analyst Insight

Monitor future filings for trends in retained earnings and treasury stock, which could signal changes in capital allocation or profitability.

Key Numbers

• 2024-03-31 — Period of Report (Conformed period of report)
• 2024-05-14 — Filing Date (Conformed submission as of date)
• 1231 — Fiscal Year End (Fiscal year end date)
• 6021 — SIC Code (Standard Industrial Classification code for National Commercial Banks)

Key Players & Entities

• CF BANKSHARES INC. (company) — Filer name
• CFBK (company) — Ticker symbol
• 2024-03-31 (date) — Period of report
• 2024-05-14 (date) — Filing date
• COLUMBUS (location) — Business address city
• OH (location) — Business address state
• 43081 (postal_code) — Business address zip
• NATIONAL COMMERCIAL BANKS (industry) — Standard Industrial Classification

FAQ

Industry Context

CF Bankshares Inc. operates within the National Commercial Banks industry (SIC 6021). This sector is characterized by traditional banking services, including deposit-taking and lending.

Regulatory Implications

As a publicly traded company, CF Bankshares Inc. is subject to the regulations of the Securities and Exchange Commission (SEC), requiring regular filings like the 10-Q to ensure transparency.

What Investors Should Do

1. Review the detailed balance sheet for changes in assets and liabilities.
2. Analyze any disclosed notes to the financial statements for further context.
3. Compare key financial metrics with previous periods to identify performance trends.

Key Dates

• 2024-03-31: Quarterly Period End — End of the reporting period for the 10-Q filing.
• 2024-05-14: Filing Date — Date the 10-Q report was officially filed with the SEC.

Year-Over-Year Comparison

This is the initial 10-Q filing for the 2024 fiscal year, providing the first quarterly update after the year-end report.

Filing Documents

• cfbk-20240331x10q.htm (10-Q) — 6648KB
• cfbk-20240331xex31_1.htm (EX-31.1) — 18KB
• cfbk-20240331xex31_2.htm (EX-31.2) — 20KB
• cfbk-20240331xex32_1.htm (EX-32.1) — 18KB
• 0001070680-24-000017.txt (&nbsp;) — 29458KB
• cfbk-20240331.xsd (EX-101.SCH) — 62KB
• cfbk-20240331_cal.xml (EX-101.CAL) — 102KB
• cfbk-20240331_def.xml (EX-101.DEF) — 334KB
• cfbk-20240331_lab.xml (EX-101.LAB) — 603KB
• cfbk-20240331_pre.xml (EX-101.PRE) — 574KB
• cfbk-20240331x10q_htm.xml (XML) — 9354KB

Financial Information

PART I. Financial Information Page

Financial Statements

Item 1. Financial Statements 3 Consolidated Balance Sheets as of March 31, 2024 (unaudited) and December 31, 2023 3 Consolidated Statements of Income for the three months ended March 31, 2024 and 2023 (unaudited) 4 Consolidated Statements of Comprehensive Income for the three months ended March 31, 2024 and 2023 (unaudited) 5 Consolidated Statements of Changes in Stockholders' Equity for the three months ended March 31, 2024 and 2023 (unaudited) 6 Consolidated Statements of Cash Flows for the t hree months ended March 31, 2024 and 2023 (unaudited) 7

Notes to Consolidated Financial Statements (three months ended March 31, 2024 and 2023 ( unaudited))

Notes to Consolidated Financial Statements (three months ended March 31, 2024 and 2023 ( unaudited)) 9

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 36

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 46

Controls and Procedures

Item 4. Controls and Procedures 47

Other Information

PART II. Other Information 48

Legal Proceedings

Item 1. Legal Proceedings 48

Risk Factors

Item 1A. Risk Factors 48

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 48

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 48

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 48

Other Information

Item 5. Other Information 48

Exhibits

Item 6. Exhibits 49

Signatures

Signatures 50 Table of Contents CF BANKSHARES INC. CONSOLIDATED BALANCE SHEETS (Dollars in thousands except per share data) March 31, December 31, 2024 2023 (unaudited) ASSETS Cash and cash equivalents $ 236,892 $ 261,595 Interest-bearing deposits in other financial institutions 100 100 Securities available for sale 7,597 8,092 Equity securities 5,000 5,000 Loans held for sale, at fair value 2,241 1,849 Loans and leases, net of allowance of $ 18,198 and $ 16,865 , respectively 1,695,731 1,694,133 FHLB and FRB stock 8,491 8,482 Premises and equipment, net 3,685 3,812 Operating lease right-of-use assets 5,041 5,221 Bank owned life insurance 26,470 26,266 Accrued interest receivable and other assets 48,225 44,065 Total assets $ 2,039,473 $ 2,058,615 LIABILITIES AND STOCKHOLDERS' EQUITY Deposits Noninterest bearing $ 236,841 $ 235,916 Interest bearing 1,486,229 1,508,141 Total deposits 1,723,070 1,744,057 FHLB advances and other debt 111,004 109,995 Advances by borrowers for taxes and insurance 1,093 2,179 Operating lease liabilities 5,127 5,302 Accrued interest payable and other liabilities 26,209 26,747 Subordinated debentures 14,971 14,961 Total liabilities 1,881,474 1,903,241 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: 5,473,026 at March 31, 2024 and 5,665,958 at December 31, 2023 55 57 Non-voting common stock, $ 0.01 par value; shares issued: 1,260,700 at March 31, 2024 and December 31, 2023 13 13 Series D preferred stock, $ 0.01 par value; 5,000 shares authorized; 2,000 shares issued at March 31, 2024 and 0 shares issued at December 31, 2023 - - Additional paid-in capital 91,303

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Dollars in thousands, except per share data) NO TE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation : The consolidated financial statements consist of CF Bankshares Inc. (the "Holding Company") and its wholly-owned subsidiary, CFBank, National Association ("CFBank"). The Holding Company and CFBank are sometimes collectively referred to herein as the "Company." Intercompany transactions and balances are eliminated in consolidation. The accompanying unaudited interim consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC") and in compliance with U.S. generally accepted accounting principles ("GAAP"). Because this report is based on an interim period, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted. In the opinion of the management of the Company, the accompanying unaudited interim consolidated financial statements include all adjustments necessary for a fair presentation of the Company's financial condition and the results of operations for the periods presented. These adjustments are of a normal recurring nature, unless otherwise disclosed in this Form 10-Q. The financial performance reported for the Company for the three months ended March 31, 2024 is not necessarily indicative of the results that may be expected for the full year. This information should be read in conjunction with the Company's latest Annual Report to Stockholders and Annual Report on Form 10-K on file with the SEC. Reference is made to the accounting policies of the Company described in Note 1 to the Audited Consolidated Financial Statements contained in the Company's 2023 Annual Report to Stockholders included in the Company's Annual Report on Form 10-K for the year ended December 31, 2023 (referred to herein as the "2023 A

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Dollars in thousands, except per share data) Allowance for credit losses on investment securities available for sale: For investment securities available for sale in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more likely than not that it will be required to sell, the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security's amortized cost basis is written down to fair value through income. For investment securities available for sale that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, the Company considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded, limited to the amount that the fair value is less than the amortized cost basis. Unrealized losses that have not been recorded through an allowance for credit losses are recognized in other comprehensive income. Adjustments to the allowance for credit losses are reported in the income statement as a component of the provision for credit loss. The Company has made the accounting policy election to exclude accrued interest receivable on investment securities available for sale from the estimate of credit losses. Investment securities available for sale are charged off against the allowance or, in the

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Dollars in thousands, except per share data) Earnings Per Common Share: The two-class method is used in the calculation of basic and diluted earnings per share. Under the two-class method, earnings available to common stockholders for the period are allocated between common stockholders and participating securities (Series D Preferred Stock) according to dividends declared (or accumulated) and participation rights in undistributed earnings. There were no anti-dilutive securities during the three months ended March 31, 2024 and 2023. The factors used in the earnings per share computation follow: Three months ended March 31, 2024 2023 (unaudited) Basic Net income $ 3,070 $ 4,448 Earnings allocated to participating securities ( 57 ) - Net income allocated to common shareholders $ 3,013 $ 4,448 Weighted average common shares outstanding including unvested share-based payment awards 6,418,671 6,535,946 Less: Unvested share-based payment awards-2019 Plan ( 88,773 ) ( 133,090 ) Average shares 6,329,898 6,402,856 Basic earnings per common share $ 0.48 $ 0.69 Diluted Net income allocated to common shareholders $ 3,013 $ 4,448 Add: Earnings allocated to participating securities 57 - Net income $ 3,070 $ 4,448 Weighted average common shares outstanding for basic earnings per common share 6,329,898 6,402,856 Add: Dilutive effects of assumed exercises of stock options - 6,752 Add: Dilutive effects of assumed preferred stock conversion 120,879 - Add: Dilutive effects of unvested share-based payment awards-2019 Plan 27,400 133,090 Average shares and dilutive potential common shares 6,478,177 6,542,698 Diluted earnings per common share $ 0.47 $ 0.68 Dividend Restrictions: Banking regulations require us to maintain certain capital levels and may limit the dividends paid by CFBank to the Hol

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