CF Bankshares (US:CFBK)2022-08-08 16:00Financial 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].