CF Bankshares Inc. Files Q3 2024 10-Q

TL;DR

**CFBK Q3 2024 10-Q filed. Financials look solid.**

AI Summary

CF Bankshares Inc. filed its 10-Q for the period ending September 30, 2024. The filing details the company's financial performance and position, including its assets, liabilities, and equity. Specific financial figures and operational details for the third quarter of 2024 are presented.

Why It Matters

This filing provides investors and analysts with a detailed look at CF Bankshares' financial health and operational performance during the third quarter of 2024, impacting investment decisions.

Risk Assessment

Risk Level: medium — As a financial institution, CF Bankshares is subject to various market, credit, and regulatory risks inherent in the banking sector.

Key Numbers

• Q3 2024 — Reporting Period (Financial performance for the third quarter of 2024 is detailed.)
• 20240930 — Fiscal Period End (The 10-Q covers financial data up to this date.)

Key Players & Entities

• CF BANKSHARES INC. (company) — Filer of the 10-Q
• 20240930 (date) — End of the reporting period
• 20241113 (date) — Date of filing
• COLUMBUS (location) — City of business and mailing address
• OH (location) — State of business and mailing address

FAQ

Filing Documents

• cfbk-20240930x10q.htm (10-Q) — 8196KB
• cfbk-20240930xex31_1.htm (EX-31.1) — 19KB
• cfbk-20240930xex31_2.htm (EX-31.2) — 21KB
• cfbk-20240930xex32_1.htm (EX-32.1) — 19KB
• 0001070680-24-000033.txt ( ) — 33394KB
• cfbk-20240930.xsd (EX-101.SCH) — 66KB
• cfbk-20240930_cal.xml (EX-101.CAL) — 114KB
• cfbk-20240930_def.xml (EX-101.DEF) — 361KB
• cfbk-20240930_lab.xml (EX-101.LAB) — 640KB
• cfbk-20240930_pre.xml (EX-101.PRE) — 606KB
• cfbk-20240930x10q_htm.xml (XML) — 10420KB

Financial Information

PART I. Financial Information Page

Financial Statements

Item 1. Financial Statements 3 Consolidated Balance Sheets as of September 30, 2024 (unaudited) and December 31, 2023 3 Consolidated Statements of Income for the three and nine months ended September 30, 2024 and 2023 (unaudited) 4 Consolidated Statements of Comprehensive Income for the three a nd nine months ended September 30, 2024 and 2023 (unaudited) 5 Consolidated Statements of Changes in Stockholders' Equity for the three a nd nine months ended September 30, 2024 and 2023 (unaudited) 6 Consolidated Statements of Cash Flows for the t hree and nine months ended September 30, 2024 and 2023 (unaudited) 8

Notes to Consolidated Financial Statements ( unaudited))

Notes to Consolidated Financial Statements ( unaudited)) 10

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 38

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 50

Controls and Procedures

Item 4. Controls and Procedures 51

Other Information

PART II. Other Information 52

Legal Proceedings

Item 1. Legal Proceedings 52

Risk Factors

Item 1A. Risk Factors 52

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 52

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 52

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 52

Other Information

Item 5. Other Information 52

Exhibits

Item 6. Exhibits 53

Signatures

Signatures 54 Table of Contents CF BANKSHARES INC. CONSOLIDATED BALANCE SHEETS (Dollars in thousands except per share data) September 30, December 31, 2024 2023 (unaudited) ASSETS Cash and cash equivalents $ 233,520 $ 261,595 Interest-bearing deposits in other financial institutions 100 100 Securities available for sale 8,690 8,092 Equity securities 5,000 5,000 Loans held for sale, at fair value 5,240 1,849 Loans and leases, net of allowance for credit losses of $ 16,780 and $ 16,865 , respectively 1,717,075 1,694,133 FHLB and FRB stock 8,908 8,482 Premises and equipment, net 3,480 3,812 Operating lease right-of-use assets 6,259 5,221 Bank owned life insurance 26,899 26,266 Accrued interest receivable and other assets 51,323 44,065 Total assets $ 2,066,494 $ 2,058,615 LIABILITIES AND STOCKHOLDERS' EQUITY Deposits Noninterest bearing $ 257,715 $ 235,916 Interest bearing 1,487,861 1,508,141 Total deposits 1,745,576 1,744,057 FHLB advances and other debt 108,672 109,995 Advances by borrowers for taxes and insurance 1,214 2,179 Operating lease liabilities 6,387 5,302 Accrued interest payable and other liabilities 25,652 26,747 Subordinated debentures 14,990 14,961 Total liabilities 1,902,491 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: 5,525,611 at September 30, 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 September 30, 2024 and December 31, 2023 13 13 Series D preferred stock, $ 0.01 par value; 5,000 shares authorized; 2,160 shares issued at September 30, 2024 and 0 shares issued at December 31, 2023 - - A

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 in accordance with U.S. generally accepted accounting principles ("GAAP") and the instructions for Form 10-Q and Article 10 of Regulation S-X promulgated by the Securities and Exchange Commission (the "SEC"). 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 Quarterly Report on Form 10-Q. The financial performance reported for the Company for the three and nine months ended September 30, 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

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

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