CF Bankshares (US:CFBK)2021-05-11 16:00Financial 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].