CF Bankshares (US:CFBK)2025-11-03 14:07Financial Performance - Net income for Q3 2025 was $2.3 million ($0.36 per diluted common share), down from $5.0 million in Q2 2025 and $4.2 million in Q3 2024[12] - Core earnings run rate approximated $5.5 million for Q3, equating to a return on equity (ROE) over 12% and return on assets (ROA) above 1.0%[6] - Net income for Q3 2025 reached $2,340,000, compared to $4,205,000 in Q3 2024, reflecting a decrease of 44.4% year-over-year[42] - Basic earnings per share for Q3 2025 were $0.36, down from $0.68 in Q3 2024, marking a decline of 47.1%[42] Revenue and Income - Pre-provision, pre-tax net revenue (PPNR) for Q3 2025 was $7.8 million, a 33% increase compared to Q3 2024[7] - Net interest income totaled $13.8 million for Q3 2025, a 20.3% increase from $11.5 million in Q3 2024[14] - Noninterest income for Q3 2025 was $1.7 million, an 8.7% increase from the prior quarter[17] - Noninterest income for Q3 2025 was $1.72 million, a 7% increase from $1.61 million in Q3 2024, with service charges on deposit accounts rising by 6% to $696,000[39] - The efficiency ratio improved to 49.82% in Q3 2025 from 55.94% in Q3 2024, indicating better cost management[42] Loan and Asset Quality - Loan delinquencies were 0.32% of total loans, with nonperforming assets (NPAs) at 0.57% as of September 30, 2025[5] - Nonaccrual loans decreased to $10.0 million, or 0.57% of total loans, down from $16.6 million at June 30, 2025[27] - The allowance for credit losses on loans was $16.8 million, representing 0.97% of total loans as of September 30, 2025[28] - The provision for credit losses on loans was $4.82 million for Q3 2025, a significant increase of 513% from $786,000 in Q3 2024[39] - Nonperforming loans to total loans ratio decreased to 0.57% in Q3 2025 from 0.94% in Q3 2024, reflecting improved asset quality[42] Deposits and Capital - Total deposits as of September 30, 2025, were $1.78 billion, a decrease of $31.2 million (1.7%) from $1.81 billion at June 30, 2025, but an increase of $22.8 million (1.3%) from $1.76 billion at December 31, 2024[30] - Stockholders' equity increased to $179.3 million at September 30, 2025, up $2.3 million (1.3%) from $177.0 million at June 30, 2025, and up $10.9 million (6.4%) from $168.4 million at December 31, 2024[33] - Total risk-based capital ratio stood at 14.88% in Q3 2025, compared to 13.76% in Q3 2024, indicating a stronger capital position[42] Loans and Leases - Total loans and leases decreased by $26.5 million, or 1.5%, from the prior quarter, totaling $1.7 billion as of September 30, 2025[23] - New commercial loan production totaled $155 million year to date, with expectations for net commercial loan growth to accelerate in 2026[9] - Net loans and leases stood at $1,728,284,000, down 1.49% from $1,754,808,000 in the previous quarter[40] Interest and Yield - Interest-earning assets totaled $1,997,220,000, generating interest income of $30,369,000, resulting in a yield of 6.08%[41] - The net interest margin for the quarter was 2.76%, compared to 2.83% in the previous quarter[41] - The company reported a net interest income of $13,790,000, with an interest rate spread of 1.96%[41] Other Financial Metrics - Average common shares outstanding for basic earnings were 6,292,698 for Q3 2025, compared to 6,253,716 for Q3 2024[39] - The company has achieved a compound annual growth rate (CAGR) in excess of 20% since its recapitalization in 2012[35] - FHLB advances and other debt totaled $101.0 million at September 30, 2025, slightly up from $100.9 million at June 30, 2025, and significantly up from $92.7 million at December 31, 2024[32] - Approximately 29.7% of deposit balances exceeded the FDIC insurance limit of $250,000 as of September 30, 2025, compared to 29.1% at June 30, 2025[31]