CF Bankshares (US:CFBK)2025-11-07 14:16Financial Position - Total assets increased by $45.5 million, or 2.2%, to $2.11 billion as of September 30, 2025, compared to $2.07 billion at December 31, 2024[187] - Cash and cash equivalents rose by $37.1 million, or 15.8%, totaling $272.4 million at September 30, 2025, primarily due to a $22.8 million increase in deposits[188] - Total deposits reached $1.78 billion as of September 30, 2025, reflecting a $22.8 million, or 1.3%, increase from $1.76 billion at December 31, 2024[207] - Stockholders' equity increased to $179.3 million at September 30, 2025, a rise of $10.9 million, or 6.4%, from $168.4 million at December 31, 2024[215] - Total liquidity available increased to $671.1 million at September 30, 2025, compared to $616.6 million at December 31, 2024[258] Loan Performance - Net loans and leases increased by $6.3 million, or 0.4%, to $1.73 billion at September 30, 2025, driven by a $54.3 million increase in commercial real estate loans[190] - Nonperforming loans decreased by $5.0 million to $10.0 million at September 30, 2025, resulting in a ratio of 0.57% to total loans[196] - Total past due loans decreased by $6.9 million to $5.6 million at September 30, 2025, representing 0.3% of the loan portfolio[201] - The level of total criticized and classified loans decreased by $7.2 million, or 21.8%, during the nine months ended September 30, 2025[199] Income and Expenses - As of September 30, 2025, net income totaled $2.3 million, a decrease of 45.2% from $4.2 million for the same period in 2024[218] - Net interest income for the quarter ended September 30, 2025 was $13.8 million, an increase of $2.3 million, or 20.3%, compared to $11.5 million for the same quarter in 2024[219] - Noninterest income for the quarter ended September 30, 2025 was $1.7 million, an increase of $112,000, or 7.0%, from $1.6 million in the same quarter of 2024[225] - Noninterest expense increased to $23.4 million for the nine months ended September 30, 2025, up $1.9 million, or 9.0%, from $21.5 million in 2024, primarily due to increased salaries and employee benefits[238] Credit Losses - The allowance for credit losses on loans decreased by $633,000, or 3.6%, to $16.8 million at September 30, 2025, with a ratio of 0.97% to total loans[191] - The provision for credit losses expense increased to $5.1 million for the quarter ended September 30, 2025, up from $558,000 in the same quarter of 2024[223] - Provision for credit losses increased to $7.1 million for the nine months ended September 30, 2025, reflecting an increase of $1.7 million compared to $5.4 million in 2024[236] Interest Income and Expense - Interest income increased to $89.9 million for the nine months ended September 30, 2025, up $1.5 million, or 1.7%, from $88.4 million in 2024, primarily due to a $52.3 million, or 3.1%, increase in average loans and leases outstanding[234] - Interest expense decreased to $49.2 million for the nine months ended September 30, 2025, down $5.1 million, or 9.3%, from $54.3 million in 2024, attributed to a 54bps decrease in the average rate of interest-bearing deposits[235] - Interest expense decreased to $16.6 million for the quarter ended September 30, 2025, down $2.0 million, or 10.6%, compared to $18.5 million for the same quarter in 2024[221] Taxation - Income tax expense was $2.9 million for the nine months ended September 30, 2025, an increase of $878,000, or 43.7%, compared to $2.0 million in 2024[239] - The effective tax rate for the nine months ended September 30, 2025, was approximately 19.7%, compared to approximately 18.3% for the same period in 2024[239] Operational Efficiency - The net interest margin improved to 2.76% for the quarter ended September 30, 2025, an increase of 35 basis points from 2.41% in the third quarter of 2024[219] - The net interest margin for the nine months ended September 30, 2025, was 2.74%, an increase of 36bps from 2.38% in 2024[247] - Average interest-earning assets increased to $1.976 billion for the nine months ended September 30, 2025, with total interest-earning assets generating $89.9 million in interest income[247] Liquidity and Borrowing - Additional borrowing capacity at the FHLB decreased by $4.7 million, or 2.5%, to $181.6 million due to a decline in pledged collateral[259] - Additional borrowing capacity at the FRB increased by $18.3 million, or 14.4%, to $145.7 million, providing access to short-term funds[260] - The Holding Company had an outstanding balance of $43.0 million on its credit facility as of September 30, 2025[270] - Annual debt service on subordinated debentures is approximately $370,000, with an interest rate of 7.11% as of September 30, 2025[268] - The annual debt service on the Company's $10 million fixed-to-floating rate subordinated notes is approximately $840,000, with an interest rate of 8.40% as of September 30, 2025[269] Internal Controls and Compliance - The company maintains effective disclosure controls and procedures as of September 30, 2025, ensuring timely reporting and decision-making[277] - There were no changes in internal controls over financial reporting in Q3 2025 that materially affected the company's internal control[278]