Loan Portfolio and Performance - The allowance for loan and lease losses (ALLL) totaled $16.1 million at December 31, 2022, an increase of $554,000, or 3.6%, from $15.5 million at December 31, 2021[140]. - The ratio of ALLL to total loans was 1.01% at December 31, 2022, compared to 1.26% at December 31, 2021[140]. - Gross loans receivable increased approximately $358.7 million, or 29.2%, to $1.6 billion at December 31, 2022, from $1.2 billion at December 31, 2021[153]. - Commercial, commercial real estate, and multi-family mortgage loans totaled $1.1 billion, representing 66.9% of the gross loan portfolio at December 31, 2022[153]. - Nonperforming loans decreased by $236,000 in 2022 compared to 2021, primarily due to two nonaccrual consumer loans paying off[135]. - The amount of additional interest income that would have been recognized on nonaccrual loans was approximately $47,000 if they had continued to perform according to their contractual terms[136]. - Nonaccrual loans included $80,000 in troubled debt restructurings (TDRs) at December 31, 2022, down from $147,000 at December 31, 2021[137]. - Total loans receivable as of December 31, 2022, amounted to $1,588.3 million, with real estate mortgage loans at $1,024.9 million and commercial loans at $338.7 million[156]. - Commercial loan balances increased by $90.5 million, or 26.9%, to $427.4 million at year-end 2022[169]. - Commercial real estate and multi-family residential mortgage loan balances increased by $42.9 million to $479.2 million at December 31, 2022, representing a 9.8% increase from $436.3 million in 2021[165]. - Portfolio single-family mortgage loans originated by the company totaled $146.1 million, or 9.2% of total loans, with ARM loans totaling $56.5 million, or 12.2% of the single-family mortgage loan portfolio[163]. Strategic Business Changes - The company strategically repositioned its Residential Mortgage Business, exiting the direct-to-consumer mortgage business in favor of regional lending[152]. - The company exited the direct-to-consumer mortgage business in favor of lending in regional markets due to a shift in the mortgage industry[162]. Interest Rate Risk and Market Conditions - The company has utilized interest-rate swaps to protect fixed-rate loans from changes in value due to interest rate fluctuations[157]. - The company's market risk primarily arises from interest rate risk, with a hedging policy allowing activities up to a notional amount of 10% of total assets and a value at risk of 10% of core capital[502]. - At December 31, 2022, the economic value ratio (EVE) under various interest rate shocks shows a range from 8.1% with a +400 bps rise to 12.4% with a -400 bps decline[504]. - Changes in market interest rates could materially affect net interest income, loan volume, asset quality, and overall profitability[505]. - Rising interest rates are generally associated with lower residential mortgage loan origination volumes, while falling rates typically lead to higher origination volumes[506]. - The company originates various types of loans, many of which have adjustable interest rates, which can mitigate the adverse effects of rising rates[506]. - In a rising interest rate environment, increased payments on adjustable-rate loans could lead to higher delinquencies and defaults[506]. - Cash flows are influenced by market interest rates, with prepayment rates likely declining in rising rate environments and increasing in falling rate environments[507]. Credit Quality Monitoring - The company continues to monitor credit quality and may need to increase the ALLL based on economic conditions and credit quality factors[142]. Loan Origination and Offerings - Single-family mortgage loans originated for sale in 2022 totaled $97.3 million, a decrease of $2.3 billion, or 95.9%, compared to $2.4 billion in 2021[162]. - The company offers both fixed-rate and adjustable-rate loans, with fixed-rate loans typically limited to terms of three to five years[169]. - The company participates in various loan programs offered by the Small Business Administration, enabling access to funding for small business owners[157]. Stock Options and Equity Compensation - As of December 31, 2022, the company has 11,089 common shares subject to outstanding stock option awards, with a weighted-average exercise price of $7.63 and 115,818 shares remaining available for future issuance under equity compensation plans[174].

Financial Performance - Net income for the three months ended September 30, 2022, totaled $4.2 million, an increase of $173,000, or 4.2%, compared to $4.1 million for the same period in 2021[202]. - Net income for the nine months ended September 30, 2022 was $13.5 million, a decrease of $493,000, or 3.5%, compared to $14.0 million for the same period in 2021[213]. - Net interest income for the quarter ended September 30, 2022, totaled $13.3 million, an increase of $2.9 million, or 27.9%, compared to $10.4 million for the same quarter in 2021[203]. - Net interest income for the nine months ended September 30, 2022 was $35.6 million, an increase of $4.5 million, or 14.7%, compared to $31.1 million for the same period in 2021[215]. - Noninterest income for Q3 2022 was $705,000, a decrease of $1.4 million, or 66.1%, from $2.1 million in Q3 2021, primarily due to a $1.9 million decrease in gain on sale of deposits[209]. Asset and Liability Management - Total assets increased to $1.8 billion as of September 30, 2022, representing an 18.0% increase from $1.5 billion at December 31, 2021[173]. - Total liabilities rose to $1,527,385 thousand in 2022, up from $1,257,855 thousand in 2021, indicating a growth of approximately 21%[226]. - Deposits totaled $1.5 billion at September 30, 2022, an increase of $243.6 million, or 19.6%, compared to $1.2 billion at December 31, 2021[193]. - Total criticized and classified loans decreased by $2.8 million, or 44.8%, during the nine months ended September 30, 2022[186]. - Total past due loans decreased by $2.3 million, totaling $1.3 million at September 30, 2022, compared to $3.6 million at December 31, 2021[188]. Loan and Lease Performance - Net loans and leases reached $1.5 billion, up $259.7 million or 21.4% from $1.2 billion at December 31, 2021, driven by increases in various loan categories[175]. - The allowance for loan and lease losses (ALLL) totaled $15.7 million, a slight increase of $179,000 or 1.2% from $15.5 million at December 31, 2021[177]. - Nonperforming loans totaled $1.0 million, with a ratio of 0.07% to total loans, compared to 0.08% at December 31, 2021[181]. - Individually evaluated impaired loans decreased to $203,000, down $2.8 million or 93.2% from $3.0 million at December 31, 2021[179]. - Interest income increased by $5.3 million, or 41.7%, totaling $18.0 million for the quarter ended September 30, 2022, compared to $12.7 million for the same period in 2021[204]. Capital and Equity - Stockholders' equity increased by $9.6 million, or 7.6%, totaling $134.9 million at September 30, 2022, compared to $125.3 million at December 31, 2021[199]. - The average yield on loans and leases was 4.74% in 2022, up from 4.05% in 2021, indicating an increase of 69 basis points[226]. - The net interest margin for the nine months ended September 30, 2022 was 3.17%, an increase of 23 basis points from 2.94% in 2021[215]. - Net interest margin improved to 3.36% in 2022, compared to 3.21% in 2021, showing an increase of 15 basis points[226]. Operational Changes and Strategy - The company exited the direct-to-consumer mortgage business in favor of portfolio lending, which has become the primary driver of earnings[170]. - CFBank originated approximately $126 million in Paycheck Protection Program (PPP) loans during Q2 2020, benefiting over 550 borrowers[168]. - The company opened two new banking offices in Ohio City (Cleveland) and Red Bank (Cincinnati) in October 2022, expanding its market presence[167]. Liquidity and Funding - Total cash available from liquid assets and borrowing capacity was $534.7 million at September 30, 2022, compared to $419.2 million at December 31, 2021[242]. - Additional borrowing capacity at the FHLB increased by $49.0 million, or 43.3%, to $162.1 million at September 30, 2022, compared to $113.1 million at December 31, 2021[243]. - CFBank's liquidity management is a daily and long-term responsibility, adjusting investments based on expected loan demand and deposit flows[239]. - The Holding Company had adequate funds and sources of liquidity at September 30, 2022, to meet current and anticipated operating needs[247]. Regulatory and Compliance - The principal executive officer and principal financial officer concluded that the disclosure controls and procedures were effective as of the quarter ended September 30, 2022[257]. - No changes were made in internal controls over financial reporting in Q3 2022 that materially affected the internal control over financial reporting[257]. - The company is not involved in any pending legal proceedings that management believes would have a material adverse effect on its financial condition or results of operations[260].

Financial Performance - Net income for the three months ended June 30, 2022, totaled $4.7 million, an increase of $1.2 million, or 35.5%, compared to $3.5 million for the same period in 2021[196]. - Net income for the six months ended June 30, 2022, totaled $9.2 million, a decrease of $666,000, or 6.7%, compared to $9.9 million for the same period in 2021[208]. - Noninterest income for the six months ended June 30, 2022, totaled $1.9 million, a decrease of $6.3 million, or 77.3%, compared to $8.2 million for the same period in 2021[215]. - Noninterest expense for the six months ended June 30, 2022, was $12.7 million, a decrease of $5.5 million, or 30.1%, compared to $18.2 million for the same period in 2021[216]. - The provision for loan and lease losses for the six months ended June 30, 2022, was zero, compared to a negative provision of $1.6 million for the same period in 2021[213]. - Income tax expense for the six months ended June 30, 2022, was $2.2 million, a decrease of $112,000 compared to $2.3 million for the same period in 2021[218]. - The effective tax rate for the six months ended June 30, 2022, was approximately 19.1%, compared to approximately 18.8% for the same period in 2021[218]. Assets and Liabilities - Total assets increased by $123.9 million, or 8.3%, to $1.6 billion as of June 30, 2022, compared to $1.5 billion at December 31, 2021[167]. - Total liabilities amounted to $1,398,654 thousand, with noninterest-bearing liabilities at $268,594 thousand[224]. - Total criticized and classified loans decreased by $2.9 million, or 47.7%, during the six months ended June 30, 2022[180]. - Total past due loans decreased by $2.8 million, totaling $716,000 at June 30, 2022, compared to $3.6 million at December 31, 2021, representing 0.1% of the loan portfolio[182]. - CFBank's total cash available from liquid assets and borrowing capacity was $473.9 million at June 30, 2022, compared to $419.2 million at December 31, 2021[238]. Loans and Leases - Net loans and leases rose by $164.1 million, or 13.5%, totaling $1.4 billion at June 30, 2022, driven by increases in commercial loans, single-family residential loans, and construction loans[169]. - The allowance for loan and lease losses (ALLL) was $15.5 million at June 30, 2022, with a ratio of ALLL to total loans at 1.11%, down from 1.26% at December 31, 2021[170]. - Individually evaluated impaired loans decreased by $2.8 million, or 92.7%, to $216,000 at June 30, 2022, primarily due to payoffs of three impaired loans[174]. - Nonperforming loans totaled $921,000 at June 30, 2022, a decrease of $76,000 from $997,000 at December 31, 2021, with a nonperforming loan ratio of 0.07%[175]. Income and Expenses - Net interest income for the quarter ended June 30, 2022, totaled $11.5 million, an increase of $505,000, or 4.6%, compared to $11.0 million for the same quarter in 2021[198]. - Interest income increased by $1.0 million, or 7.6%, totaling $14.7 million for the quarter ended June 30, 2022, compared to $13.7 million for the same quarter in 2021[198]. - Net interest income for the six months ended June 30, 2022, was $22.3 million, an increase of $1.6 million, or 8.1%, compared to $20.7 million for the same period in 2021[209]. - Interest expense for the quarter ended June 30, 2022, totaled $3.2 million, an increase of $539,000, or 20.6%, compared to $2.6 million for the same quarter in 2021[199]. - Interest expense for the six months ended June 30, 2022, was $5.5 million, a decrease of $323,000, or 5.5%, compared to $5.9 million for the same period in 2021[211]. Deposits and Equity - Deposits totaled $1.4 billion at June 30, 2022, an increase of $131.1 million, or 10.5%, compared to $1.2 billion at December 31, 2021[187]. - Stockholders' equity increased by $7.4 million, or 5.9%, totaling $132.7 million at June 30, 2022, compared to $125.3 million at December 31, 2021[191]. Strategic Initiatives - The company exited the saleable-to-investors mortgage business in favor of portfolio lending with servicing retained, reflecting a strategic repositioning of its residential mortgage business model[164]. - The company continues to focus on serving closely held businesses and entrepreneurs, providing comprehensive commercial, retail, and mortgage lending services[160]. Regulatory and Compliance - The Holding Company is subject to various legal and regulatory policies impacting its ability to pay dividends on its stock[248]. - Management has concluded that the disclosure controls and procedures were effective as of the quarter ended June 30, 2022[253]. - No changes were made in internal controls over financial reporting in Q2 2022 that materially affected the internal control[253]. - The Company is not involved in any pending legal proceedings that would materially adversely affect its financial condition or results of operations[256].

Financial Position - Total assets increased by $48.6 million, or 3.3%, to $1.5 billion at March 31, 2022, compared to December 31, 2021[162]. - Cash and cash equivalents increased by $1.7 million, or 1.0%, to $168.3 million at March 31, 2022, attributed to net deposit balances and security maturities[162]. - Securities available for sale decreased by $3.3 million, or 20.5%, to $13.0 million at March 31, 2022, due to principal maturities[163]. - Total assets as of March 31, 2022, were $1,456.0 million, a decrease from $1,507.4 million in the same period of 2021[203]. - CFBank's cash, unpledged securities, and deposits in other financial institutions increased by $928,000, or 0.55%, to $169.9 million as of March 31, 2022, compared to $169.0 million at December 31, 2021[217]. Loan and Lease Performance - Net loans and leases rose by $67.2 million, or 5.5%, to $1.3 billion at March 31, 2022, driven by increases in single-family residential, commercial, and construction loan balances[164]. - The allowance for loan and lease losses (ALLL) was $15.5 million at March 31, 2022, with a ratio of ALLL to total loans at 1.20%, down from 1.26% at December 31, 2021[165]. - Individually evaluated impaired loans decreased by $2.0 million, or 65.9%, to $1.0 million at March 31, 2022, primarily due to the payoff of two impaired loans[169]. - Nonperforming loans totaled $1.0 million at March 31, 2022, with a ratio of nonperforming loans to total loans remaining stable at 0.08%[170]. - Total criticized and classified loans decreased by $2.0 million, or 32.7%, during the three months ended March 31, 2022[175]. - Total past due loans decreased by $2.6 million, totaling $946,000 at March 31, 2022, compared to $3.6 million at December 31, 2021[177]. Income and Expenses - Net income for the three months ended March 31, 2022, totaled $4.5 million, a decrease of $1.9 million, or 29.6%, compared to $6.4 million for the same period in 2021[190]. - Net interest income increased by $1.2 million, or 12.0%, totaling $10.8 million for the quarter ended March 31, 2022[192]. - Interest income increased by $295,000, or 2.3%, totaling $13.2 million for the quarter ended March 31, 2022[192]. - Interest expense decreased by $862,000, or 26.6%, totaling $2.4 million for the quarter ended March 31, 2022[193]. - Noninterest income decreased by $6.2 million, or 85.5%, to $1.0 million for the quarter ended March 31, 2022, primarily due to a $5.8 million decrease in net gain on the sale of residential mortgage loans[197]. - Noninterest expense for the quarter ended March 31, 2022, totaled $6.3 million, a decrease of $2.7 million, or 30.0%, compared to $9.0 million for the same quarter in 2021[198]. - Income tax expense was $1.0 million for the quarter ended March 31, 2022, a decrease of $432,000 compared to $1.5 million for the same quarter in 2021, with an effective tax rate of approximately 18.5%[199]. Deposits and Equity - Deposits totaled $1.3 billion at March 31, 2022, an increase of $52.4 million, or 4.2%, compared to $1.2 billion at December 31, 2021[182]. - Stockholders' equity increased by $3.0 million, or 2.4%, totaling $128.3 million at March 31, 2022[186]. - FHLB advances and other debt decreased by $6.5 million, or 7.2%, totaling $83.2 million at March 31, 2022[183]. Strategic Changes - The company strategically repositioned its Residential Mortgage Business, exiting the saleable-to-investors mortgage business in favor of portfolio lending[159]. - The company strategically scaled down its residential mortgage lending business in response to shifts in the mortgage industry, impacting both income and expenses[197][198]. Liquidity and Borrowing Capacity - Additional borrowing capacity at the FHLB increased by $14.9 million, or 13.2%, to $128.0 million at March 31, 2022, from $113.1 million at December 31, 2021[218]. - Additional borrowing capacity at the FRB increased by $17.2 million, or 23.8%, to $89.4 million at March 31, 2022, from $72.2 million at December 31, 2021[218]. - CFBank had $65.0 million of availability in unused lines of credit with two commercial banks as of March 31, 2022, unchanged from December 31, 2021[219]. - The Holding Company had an outstanding balance of $24.3 million on a $35.0 million credit facility as of March 31, 2022, which is revolving until May 21, 2024[225]. - Management believes that the Holding Company had adequate funds and sources of liquidity at March 31, 2022, to meet its current and anticipated operating needs[222]. - CFBank's liquidity management involves adjusting investments in liquid assets based on expected loan demand and deposit flows[214]. Regulatory and Compliance - The Holding Company is subject to various legal and regulatory policies impacting its ability to pay dividends on its stock, which depend on cash and liquidity available at the Holding Company level[227]. - Federal income tax laws provided deductions totaling $2.3 million for thrift bad debt reserves established before 1988, which could create a tax liability if certain conditions are met[228]. - The company maintains effective disclosure controls and procedures as of March 31, 2022[232]. - No changes were made to internal controls over financial reporting in Q1 2022 that materially affected the reporting[232]. - The company is not involved in any pending legal proceedings that would materially adversely affect its financial condition or results of operations[235].

Loan and Lease Losses - The Allowance for Loan and Lease Losses (ALLL) totaled $15.5 million at December 31, 2021, a decrease of $1.5 million, or 8.9%, from $17.0 million at December 31, 2020[57]. - The ratio of ALLL to total loans was 1.26% at December 31, 2021, compared to 1.87% at December 31, 2020[57]. - Nonperforming loans increased by $302,000 in 2021 compared to 2020, primarily due to one consumer loan and one mortgage loan going into nonaccrual status[52]. - The amount of additional interest income that would have been recognized on nonaccrual loans was approximately $39,000 if they had continued to perform according to their contractual terms[53]. - At year-end 2021, there were a total of $2.8 million of Troubled Debt Restructurings (TDRs), including $2.7 million in commercial real estate loans[55]. - The company had no loans restructured in 2021 identified as TDRs[54]. - The net charge-offs for the year were $1.031 million, with a provision for loan and lease losses of negative $1.6 million[58]. - The ALLL to nonperforming loans ratio was 1555.47% at December 31, 2021, compared to 2449.21% at December 31, 2020[61]. Deposits and Liquidity - CFBank's total deposits reached $1,212.5 million in 2021, with certificates of deposit accounting for 48.5% of average deposit balances[78]. - Brokered deposits amounted to $278.1 million as of December 31, 2021, with cash and unpledged securities totaling $169.0 million[75]. - CFBank had $65.0 million in FHLB advances at year-end 2021, with eligibility to borrow up to $178.4 million based on collateral pledged[79]. - The Holding Company's available cash and cash equivalents totaled $819,000 at December 31, 2021, indicating adequate liquidity for operating needs[71]. - Customer balances in the CDARS reciprocal and ICS programs increased by $11.5 million, or 24.4%, from $46.9 million at December 31, 2020[76]. - CFBank's average interest-bearing checking accounts had an average balance of $92.1 million, representing 7.6% of total average deposits[78]. - At December 31, 2021, deposits exceeding the FDIC insured limit of $250,000 totaled $504.9 million, up from $433.2 million in 2020[77]. Capital and Regulatory Compliance - The Basel III Capital Rules require a minimum common equity tier 1 capital ratio of 4.5%, a minimum Tier 1 capital ratio of 6.0%, and a minimum total capital ratio of 8.0%[103]. - The Company is subject to extensive regulation by the Federal Reserve Board, which includes regular examinations and the ability to impose civil money penalties[91]. - The Economic Growth, Regulatory Relief and Consumer Protection Act eased certain restrictions for bank holding companies with consolidated assets of less than $100 billion[97]. - CFBank is subject to regulation and examination by the Office of the Comptroller of the Currency and the FDIC, which insures its deposits[89]. - The Company must maintain a capital conservation buffer of greater than 2.5% to avoid restrictions on capital distributions, including dividends[108]. - CFBank did not utilize the Community Bank Leverage Ratio (CBLR) framework and continued to follow existing capital rules[109]. - As of December 31, 2021, CFBank met the requirements to be deemed "well-capitalized" with a common equity tier I capital ratio of at least 6.5%, total risk-based capital of at least 10.0%, and a leverage ratio of at least 5.0%[110]. Tax and Ownership Changes - The Company had net operating loss carryforwards of $22.3 million as of year-end 2021, which expire between 2024 and 2032[147]. - Due to an ownership change, the Company's ability to utilize carryforwards from before the 2012 stock offering is limited to $163,000 per year[147]. - The Company determined that $20.5 million of net operating loss carryforwards will likely expire unutilized due to limitations imposed by tax laws[147]. - Federal income tax laws provided additional deductions totaling $2.3 million for thrift bad debt reserves established before 1988[148]. - The Company incurred an ownership change as a result of a recapitalization program through the sale of $22.5 million in common stock[146]. Interest Rate Risk Management - CFBank's Economic Value Ratio (EVE) is projected to be 11.8% at current interest rates, with a potential increase to 11.9% if rates decrease by 100 basis points[349]. - The EVE ratio could drop to 8.6% if interest rates rise by 400 basis points, indicating significant sensitivity to interest rate changes[349]. - Changes in market interest rates could adversely affect net interest income, loan volume, asset quality, and overall profitability[350]. - Rising interest rates are generally associated with a lower volume of residential mortgage loan originations, while falling rates typically lead to higher originations[351]. - CFBank's portfolio includes adjustable-rate loans, which may mitigate some risks associated with rising interest rates, but could also lead to increased delinquencies[351]. - The company has a hedging policy allowing interest rate swaps up to 10% of total assets and a value at risk of 10% of core capital[347]. - Cash flows are influenced by market interest rates, with prepayment rates likely declining in rising rate environments[352]. - The company does not engage in trading accounts, commodities, or foreign exchange, limiting its exposure to certain market risks[347]. - CFBank actively monitors and manages interest rate risk to limit adverse impacts on net interest income and capital[347]. - The company’s market risk primarily arises from interest rate risk inherent in its lending, investing, deposit gathering, and borrowing activities[347]. Employment and Corporate Structure - The Company employed 129 full-time and 5 part-time employees as of December 31, 2021[86]. - The Holding Company became a financial holding company effective December 1, 2016, allowing it to engage in a broader range of financial activities[94]. Compliance and Cybersecurity - CFBank is required to establish policies compliant with the Patriot Act and has done so[127]. - The Anti-Money Laundering Act of 2020 codifies a risk-based approach to compliance for financial institutions[128]. - CFBank is responsible for blocking accounts and transactions with specially designated targets under OFAC regulations[129]. - The Company has implemented significant resources and technology to manage and maintain cybersecurity controls[142].

Financial Position - Total assets decreased by $122 million, or 8.3%, to $1.4 billion as of September 30, 2021, from $1.5 billion at December 31, 2020[183] - Cash and cash equivalents decreased by $153.4 million, or 69.2%, to $68.2 million as of September 30, 2021, from $221.6 million at December 31, 2020[184] - Loans held for sale decreased by $205.3 million, or 72.5%, to $77.9 million as of September 30, 2021, from $283.2 million at December 31, 2020[185] - Total criticized and classified loans decreased by $681,000, or 4.8%, during the nine months ended September 30, 2021[199] - Deposits increased by $43.7 million, or 3.9%, totaling $1.2 billion at September 30, 2021, primarily due to a $44.5 million increase in noninterest-bearing deposit accounts[204] - Brokered deposits, including CDARS and ICS deposits, totaled $269.1 million at September 30, 2021, an increase of $100.4 million, or 59.5%, from $168.7 million at December 31, 2020[205] - Stockholders' equity increased by $13.0 million, or 11.8%, totaling $123.2 million at September 30, 2021, primarily attributed to net income[211] Loan Performance - Net loans and leases increased by $228.4 million, or 25.5%, to $1.1 billion as of September 30, 2021, compared to $895.3 million at December 31, 2020[186] - The allowance for loan and lease losses (ALLL) decreased by $1.5 million, or 9.0%, to $15.5 million as of September 30, 2021, from $17.0 million at December 31, 2020[189] - Individually evaluated impaired loans decreased by $80,000, or 2.6%, to $3.0 million as of September 30, 2021, from $3.1 million at December 31, 2020[191] - Nonperforming loans totaled $1.0 million at September 30, 2021, an increase of $316,000 from $695,000 at December 31, 2020, resulting in a ratio of nonperforming loans to total loans of 0.09%[194] - Total past due loans decreased by $111,000, totaling $2.1 million at September 30, 2021, remaining at 0.2% of the loan portfolio[201] - The ratio of the ALLL to total loans was 1.36% at September 30, 2021, compared to 1.87% at December 31, 2020[189] Income and Expenses - Net income for the quarter ended September 30, 2021 was $4.1 million, a decrease of $6.1 million or 60.0% compared to $10.2 million for the same period in 2020[214] - Net interest income for the quarter ended September 30, 2021 totaled $10.4 million, an increase of $3.3 million or 45.8% compared to $7.1 million for the same period in 2020[217] - Noninterest income for the quarter ended September 30, 2021 was $2.1 million, a decrease of $21.3 million or 91.1% compared to $23.4 million for the same quarter in 2020[221] - Noninterest expense for the quarter ended September 30, 2021 totaled $7.4 million, a decrease of $4.5 million or 37.7% compared to $11.9 million for the same period in 2020[222] - Net income for the nine months ended September 30, 2021 was $14.0 million, a decrease of $8.3 million or 37.2% compared to $22.3 million for the same period in 2020[226] - Net interest income for the nine months ended September 30, 2021 was $31.1 million, an increase of $11.6 million or 59.0% compared to $19.5 million for the same period in 2020[228] - Noninterest income for the nine months ended September 30, 2021 was $10.3 million, a decrease of $36.4 million or 78.0% compared to $46.7 million for the same period in 2020[230] Liquidity and Capital Management - CFBank has excess cash or sources of liquidity to cover expenses for the foreseeable future and could inject capital into CFBank if necessary[213] - CFBank's liquidity management is a daily and long-term responsibility, adjusting investments based on expected loan demand and deposit flows[252] - Management believes that CFBank's current liquidity is sufficient to meet its daily operating needs and fulfill its strategic planning[252] - The Holding Company had $14.2 million of availability on its credit facility at September 30, 2021, in addition to existing liquid assets[259] - CFBank's additional borrowing capacity with the FHLB increased by $34.8 million, or 64.8%, to $88.4 million at September 30, 2021, compared to $53.6 million at December 31, 2020[255] - CFBank's additional borrowing capacity at the FRB decreased by $16.1 million, or 19.8%, to $65.4 million at September 30, 2021, from $81.5 million at December 31, 2020[256] Regulatory and Compliance - As of September 30, 2021, there has been no material change in the Company's market risk compared to the previous year[268] - Management concluded that the disclosure controls and procedures were effective for the quarter ended September 30, 2021[270] - No changes were made in internal controls over financial reporting in Q3 2021 that materially affected the internal control[270] - The Company is not involved in any pending legal proceedings that would materially adversely affect its financial condition or results of operations[273]

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 June 30, 2021 Or [ ] 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 (S ...

Financial Performance - Net income for Q1 2021 was $6.4 million, a 220.1% increase from $2.0 million in Q1 2020[249]. - Net interest income for Q1 2021 totaled $9.6 million, up 57.1% from $6.1 million in Q1 2020, driven by a $2.9 million increase in interest income[251]. - Noninterest income for Q1 2021 was $7.2 million, a 109.9% increase from $3.4 million in Q1 2020, mainly due to a $3.5 million increase in net gain on sale of loans[257]. - Noninterest expense for Q1 2021 was $9.0 million, a 27.3% increase from $7.0 million in Q1 2020, largely due to a $1.6 million rise in salaries and employee benefits[258]. - Income tax expense for Q1 2021 was $1.5 million, an increase of $940,000 from $517,000 in Q1 2020, with an effective tax rate of approximately 18.5%[259]. Asset and Loan Growth - Total assets increased to $1.6 billion as of March 31, 2021, reflecting an increase of $128.0 million, or 8.6%, from $1.5 billion at December 31, 2020[209]. - Net loans and leases reached $966.8 million at March 31, 2021, up $71.5 million, or 8.0%, from $895.3 million at December 31, 2020[212]. - Loans held for sale increased to $430.5 million, a rise of $147.3 million, or 52.0%, from $283.2 million at December 31, 2020[211]. - Cash and cash equivalents decreased to $125.8 million at March 31, 2021, down $95.8 million, or 43.2%, from $221.6 million at December 31, 2020[210]. - Average interest-earning assets increased to $1.43 billion in Q1 2021, compared to $853.8 million in Q1 2020[264]. Loan Quality and Allowance - The allowance for loan and lease losses (ALLL) was $17.1 million at March 31, 2021, up $64,000, or 0.4%, from $17.0 million at December 31, 2020[215]. - The ratio of ALLL to total loans was 1.74% at March 31, 2021, compared to 1.87% at December 31, 2020[215]. - Nonperforming loans totaled $641,000 at March 31, 2021, a decrease of $54,000 or 7.8% from $695,000 at December 31, 2020, with a nonperforming loan ratio of 0.07%[222]. - Total past due loans decreased by $1.8 million to $417,000 at March 31, 2021, representing 0.04% of the loan portfolio compared to 0.2% at December 31, 2020[231]. - The general reserve component of the ALLL is based on historical loss experience adjusted for current factors, with management monitoring credit quality continuously[225]. Deposits and Funding - Deposits increased by $207.3 million, or 18.6%, to $1.3 billion at March 31, 2021, driven by a $189.1 million increase in interest-bearing deposit accounts[236]. - Brokered deposits, including CDARS and ICS deposits, totaled $307.6 million at March 31, 2021, an increase of $138.9 million, or 82.3%, from $168.7 million at December 31, 2020[237]. - FHLB advances and other debt decreased by $76.5 million, or 35.7%, to $137.9 million at March 31, 2021, compared to $214.4 million at December 31, 2020[238]. - The principal balance of PPPLF advances outstanding was $90.6 million at March 31, 2021, down from $107.4 million at December 31, 2020[244]. - CFBank's liquidity management involves adjusting investments in liquid assets based on expected loan demand and deposit flows[277]. Risk Management and Controls - As of March 31, 2021, there has been no material change in the Company's market risk compared to the information in the Annual Report for the year ended December 31, 2020[297]. - The Company's disclosure controls and procedures were evaluated and deemed effective for the quarter ended March 31, 2021[299]. - No changes were made in the internal controls over financial reporting in the first quarter of 2021 that materially affected the internal control[300]. - The Company is not involved in any pending legal proceedings that would have a material adverse effect on its financial condition or results of operations[303].

PART I [Business](index=4&type=section&id=Item%201.%20Business) CF Bankshares Inc. operates CFBank, focusing on personalized business banking in Ohio and national residential lending, with total assets reaching **$1.5 billion** in 2020 - The company operates as a financial holding company for CFBank, focusing on personalized business banking in four major Ohio metro markets and a national residential lending platform[12](index=12&type=chunk) - CFBank agreed to sell two Columbiana County branches, including approximately **$100 million** in deposits, with the transaction expected to close in Q3 2021[15](index=15&type=chunk) Company Financial Snapshot as of December 31, 2020 | Metric | Value | | :--- | :--- | | Total Assets | $1.5 billion | | Stockholders' Equity | $110.2 million | [Lending Activities](index=5&type=section&id=Lending%20Activities) Lending activities saw significant growth in 2020, with gross loans reaching **$912.4 million**, driven by commercial and real estate loans, alongside substantial single-family mortgage originations and PPP participation Loan Portfolio Composition (2019 vs. 2020) | Loan Category | 2020 Amount (in thousands) | 2020 Percent of Total | 2019 Amount (in thousands) | 2019 Percent of Total | | :--- | :--- | :--- | :--- | :--- | | Single-family | $147,860 | 16.21% | $120,256 | 17.94% | | Multi-family | $45,375 | 4.97% | $39,229 | 5.85% | | Construction | $80,426 | 8.82% | $67,652 | 10.09% | | Commercial real estate | $277,028 | 30.36% | $247,543 | 36.92% | | Consumer loans | $23,391 | 2.56% | $25,115 | 3.75% | | Commercial loans | $338,286 | 37.08% | $170,646 | 25.45% | | **Total loans receivable** | **$912,366** | **100.0%** | **$670,441** | **100.0%** | - Gross loans receivable increased by **$242.0 million**, or **36.1%**, in 2020, primarily due to a **$219.8 million (43.1%)** rise in commercial, commercial real estate, and multi-family mortgage loans[17](index=17&type=chunk) - The company originated **$2.2 billion** in single-family mortgage loans for sale in 2020, a **203.8%** increase from **$733.7 million** in 2019, driven by business expansion and refinance activity[27](index=27&type=chunk) - The company originated **$105.3 million** in Paycheck Protection Program (PPP) loans, which are **100%** guaranteed by the SBA, as part of the CARES Act[31](index=31&type=chunk) [Credit Quality](index=10&type=section&id=Credit%20Quality) Credit quality improved in 2020 with nonperforming loans decreasing to **$0.7 million**, while the Allowance for Loan and Lease Losses (ALLL) significantly increased to **$17.0 million** due to portfolio growth and economic uncertainty Nonperforming Assets (2019 vs. 2020) | Metric | 2020 (in thousands) | 2019 (in thousands) | | :--- | :--- | :--- | | Total nonaccrual loans | $695 | $2,439 | | Total nonperforming assets | $695 | $2,439 | | Nonperforming loans to total loans | 0.08% | 0.36% | | Nonperforming assets to total assets | 0.05% | 0.28% | Allowance for Loan and Lease Losses (ALLL) Activity | Metric (in thousands) | 2020 | 2019 | | :--- | :--- | :--- | | ALLL, beginning of period | $7,138 | $7,012 | | Net charge-offs (recoveries) | $1,031 | ($126) | | Provision for loan and lease losses | $10,915 | $0 | | **ALLL, end of period** | **$17,022** | **$7,138** | | ALLL to total loans and leases | 1.87% | 1.06% | - The decrease in nonperforming loans in 2020 was primarily due to the payoff of a **$1.7 million** commercial real estate loan[44](index=44&type=chunk) - The ratio of ALLL to total loans, excluding SBA-guaranteed loans, was **2.15%** at December 31, 2020, compared to **1.07%** at December 31, 2019[47](index=47&type=chunk) [Investment Activities](index=18&type=section&id=Investment%20Activities) The company's investment policy prioritizes liquidity and returns, with its securities available for sale totaling **$8.7 million** and equity securities at **$5.0 million** as of December 31, 2020 Securities Available For Sale (Fair Value) | Security Type | Dec 31, 2020 (in thousands) | Dec 31, 2019 (in thousands) | | :--- | :--- | :--- | | U.S. Treasury | $8,636 | $8,017 | | Mortgage-backed securities | $65 | $130 | | Collateralized mortgage obligations | $0 | $27 | | **Total** | **$8,701** | **$8,174** | - Equity securities, primarily preferred stock in another financial institution, totaled **$5.0 million** at December 31, 2020, up from **$0** in the prior year[60](index=60&type=chunk) [Sources of Funds](index=21&type=section&id=Sources%20of%20Funds) Primary funding sources include deposits, loan payments, and borrowings, with average total deposits growing to **$886.4 million** in 2020, supplemented by FHLB advances, brokered deposits, and the PPPLF Average Deposit Balances | Deposit Type | 2020 Avg. Balance (in thousands) | 2019 Avg. Balance (in thousands) | | :--- | :--- | :--- | | Interest-bearing deposits | $739,462 | $525,818 | | Noninterest-bearing deposits | $146,935 | $112,151 | | **Total Average Deposits** | **$886,397** | **$637,969** | - The company held **$168.7 million** in brokered deposits as of December 31, 2020[68](index=68&type=chunk) - The company utilized the Federal Reserve's Paycheck Protection Program Lending Facility (PPPLF) to fund PPP loans, with an outstanding balance of **$107.4 million** at December 31, 2020[74](index=74&type=chunk) - An additional **$75 million** warehouse facility was established in Q2 2020 to fund loans held for sale, with **$70.0 million** outstanding at year-end[74](index=74&type=chunk) [Regulation and Supervision](index=24&type=section&id=Regulation%20and%20Supervision) CF Bankshares Inc. and CFBank are extensively regulated by federal agencies, adhering to capital adequacy rules like Basel III, and participated in the CARES Act's PPP - The Holding Company is regulated by the FRB, while CFBank, a national bank, is primarily regulated by the OCC and the FDIC[77](index=77&type=chunk) - As of December 31, 2020, management believes CFBank met the 'well-capitalized' ratio requirements, including a common equity tier 1 ratio of at least **6.5%**, a total risk-based capital ratio of at least **10.0%**, and a leverage ratio of at least **5.0%**[90](index=90&type=chunk) - The company participated in the Paycheck Protection Program (PPP) established by the CARES Act in response to the COVID-19 pandemic[98](index=98&type=chunk) [Risk Factors](index=32&type=section&id=Item%201A.%20Risk%20Factors) Key risks include the COVID-19 pandemic's economic impact, potential inadequacy of loan loss allowance, concentration in commercial real estate, interest rate sensitivity, operational risks, and challenges from rapid growth and competition - The COVID-19 pandemic poses significant risks, potentially increasing loan delinquencies, credit losses, and operational challenges from remote work[117](index=117&type=chunk)[120](index=120&type=chunk) - The allowance for loan losses may be inadequate, with the upcoming CECL model potentially requiring a significant increase in the allowance[129](index=129&type=chunk)[131](index=131&type=chunk) - A significant emphasis on commercial and commercial real estate lending exposes the company to increased risks due to larger balances and sensitivity to adverse economic conditions[132](index=132&type=chunk) - Operational risks include cybersecurity threats, system disruptions, reliance on third-party vendors, and challenges managing rapid growth, with total assets increasing by **320.4%** since January 1, 2016[135](index=135&type=chunk)[138](index=138&type=chunk)[143](index=143&type=chunk) [Unresolved Staff Comments](index=43&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) This section is not applicable [Properties](index=44&type=section&id=Item%202.%20Properties) As of December 31, 2020, the company operated six branch offices and two other offices in Ohio, with a total net book value of owned properties at **$2.9 million** - The company operates through six branch offices and two other offices across various Ohio counties[171](index=171&type=chunk) - The net book value of the company's properties totaled **$2.9 million** at December 31, 2020[171](index=171&type=chunk) [Legal Proceedings](index=44&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in routine legal proceedings, none of which are expected to materially adversely affect its financial condition or operations - The company is not a party to any pending legal proceeding that management believes would have a material adverse effect on its financial condition or operations[173](index=173&type=chunk) [Mine Safety Disclosures](index=44&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section is not applicable PART II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=45&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) This section references the 2020 Annual Report for common stock market and dividend information, and details the purchase of **289 shares** for tax payments related to restricted stock vesting in Q4 2020 Issuer Purchases of Equity Securities (Q4 2020) | Period | Total number of common shares purchased | Average price paid per common share | | :--- | :--- | :--- | | Oct 2020 | - | - | | Nov 2020 | - | - | | Dec 2020 | 289 | $18.00 | | **Total** | **289** | **$18.00** | - The shares purchased in December 2020 were surrendered by officers and employees to cover tax payments upon the vesting of restricted stock[176](index=176&type=chunk) [Selected Financial Data](index=45&type=section&id=Item%206.%20Selected%20Financial%20Data) This section incorporates by reference the 'Selected Financial and Other Data' from the company's 2020 Annual Report [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=45&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section incorporates by reference the 'Management's Discussion and Analysis of Financial Condition and Results of Operations' from the 2020 Annual Report [Quantitative and Qualitative Disclosures About Market Risk](index=45&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section incorporates by reference the 'Quantitative and Qualitative Disclosures about Market Risks' from the company's 2020 Annual Report [Financial Statements and Supplementary Data](index=46&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section incorporates by reference the company's consolidated financial statements from its 2020 Annual Report, including audit and internal control reports [Changes in and Disagreements With Accountants on Accounting and Financial Disclosure](index=46&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20With%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) No changes in or disagreements with accountants on accounting and financial disclosure were reported [Controls and Procedures](index=46&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of December 31, 2020, with no material changes to internal controls in Q4 2020 - Management concluded that the company's internal controls over financial reporting were effective as of December 31, 2020[184](index=184&type=chunk) [Other Information](index=46&type=section&id=Item%209B.%20Other%20Information) No other information was reported PART III [Directors, Executive Officers and Corporate Governance](index=46&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) This section incorporates by reference information from the 2021 Proxy Statement regarding directors, executive officers, Section 16(a) compliance, and corporate governance, including the Code of Ethics - The company has adopted a Code of Ethics and Business Conduct applicable to all employees, officers, and directors, available on its website[186](index=186&type=chunk)[188](index=188&type=chunk) [Executive Compensation](index=47&type=section&id=Item%2011.%20Executive%20Compensation) This section incorporates by reference information from the company's 2021 Proxy Statement regarding executive officer and director compensation [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=47&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) This section incorporates by reference information from the 2021 Proxy Statement regarding beneficial ownership of common stock and equity compensation plans [Certain Relationships and Related Transactions, and Director Independence](index=47&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) This section incorporates by reference information from the 2021 Proxy Statement regarding related party transactions and director independence [Principal Accounting Fees and Services](index=47&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services) This section incorporates by reference information from the company's 2021 Proxy Statement regarding fees paid to the principal accountant PART IV [Exhibits and Financial Statement Schedules](index=47&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section provides an index of all exhibits filed with the Form 10-K, including corporate documents, material contracts, and various certifications [Form 10-K Summary](index=49&type=section&id=Item%2016.%20Form%2010-K%20Summary) This section is not applicable

Financial Performance - Net income for Q3 2020 was $10.2 million, a 289.2% increase from $2.6 million in Q3 2019[263] - For the nine months ended September 30, 2020, net income was $22.3 million, a 238.4% increase from $6.6 million in the same period of 2019[278] - Noninterest income surged to $23.4 million in Q3 2020, a 611.2% increase from $3.3 million in Q3 2019, primarily due to a $20.0 million increase in net gain on sale of loans[271] - Noninterest income for the nine months ended September 30, 2020 totaled $46.7 million, a 518.6% increase from $7.5 million in the same period of 2019[283] Asset and Liability Management - Total assets increased by $456.5 million, or 51.8%, to $1.3 billion as of September 30, 2020, compared to $880.5 million at December 31, 2019[222] - Total liabilities were $1,103.8 million, with noninterest-bearing liabilities at $169.4 million[292] - Cash and cash equivalents rose by $46.9 million, or 102.2%, to $92.8 million as of September 30, 2020, attributed to increases in deposits and borrowings[223] - The total cash available from liquid assets and borrowing capacity increased to $287.9 million at September 30, 2020, from $204.8 million at December 31, 2019[308] Loan and Lease Activity - Net loans and leases rose by $208.4 million, or 31.4%, totaling $871.7 million as of September 30, 2020, driven by a $160.6 million increase in commercial loan balances[227] - CFBank originated approximately $126 million in Paycheck Protection Program (PPP) loans during the second quarter, benefiting over 550 borrowers[216] - Loans held for sale increased by $173.0 million, or 127.5%, totaling $308.7 million as of September 30, 2020[225] - The allowance for loan and lease losses (ALLL) increased by $8.4 million, or 117.0%, to $15.5 million as of September 30, 2020, with a ratio of ALLL to total loans at 1.75%[229] Credit Quality - Nonperforming loans decreased to $527,000 at September 30, 2020, down $1.9 million from $2.4 million at December 31, 2019, resulting in a nonperforming loans to total loans ratio of 0.06%[236] - Total past due loans decreased by $4.3 million to $952,000 at September 30, 2020, representing 0.1% of the loan portfolio compared to 0.8% at December 31, 2019[246] - The level of total criticized and classified loans increased by $7.0 million, or 64.4%, during the nine months ended September 30, 2020, primarily due to loan downgrades[242] - Individually evaluated impaired loans totaled $2.9 million at September 30, 2020, a decrease of $1.7 million, or 36.7%, from $4.6 million at December 31, 2019[232] Income and Expenses - Net interest income for Q3 2020 totaled $7.1 million, up 34.0% from $5.3 million in Q3 2019, driven by a 20.0% increase in interest income[266] - Noninterest expense for Q3 2020 was $11.9 million, a 123.7% increase from $5.3 million in Q3 2019, driven by higher salaries and employee benefits[272] - Income tax expense was $5.8 million for the nine months ended September 30, 2020, an increase of $4.1 million compared to $1.7 million for the same period in 2019[287] - The effective tax rate for the quarter ended September 30, 2020 was approximately 20.7%, compared to approximately 20.3% for the same quarter in 2019[287] Regulatory and Compliance - The principal executive officer and principal financial officer concluded that the disclosure controls and procedures were effective as of September 30, 2020[326] - No changes were made in internal controls over financial reporting in the third quarter of 2020 that materially affected the internal control[327] - The Holding Company is subject to various legal and regulatory policies impacting its ability to pay dividends[321] - The Holding Company declared a quarterly cash dividend of $0.03 per share, payable on November 16, 2020[314]