CF Bankshares (US:CFBK)2021-11-14 16:00Financial 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]