CF Bankshares (US:CFBK)2023-08-10 16:00Financial Performance - Interest income for the six months ended June 30, 2023, totaled $50.4 million, an increase of $22.5 million, or 80.9%, compared to $27.9 million for the same period in 2022[122]. - Interest expense for the six months ended June 30, 2023, totaled $26.2 million, an increase of $20.6 million, or 372.8%, compared to $5.5 million for the same period in 2022[123]. - Noninterest income for the six months ended June 30, 2023, totaled $1.7 million, a decrease of $157,000, or 8.5%, compared to $1.9 million for the same period in 2022[124]. - Net income for the three months ended June 30, 2023, totaled $4.2 million, a decrease of $503,000, or 10.6%, compared to $4.7 million for the same period in 2022[141]. - Net interest income for the quarter ended June 30, 2023, totaled $11.5 million, a decrease of $59,000, or 0.5%, compared to the same quarter in 2022[142]. - The net interest margin for the quarter ended June 30, 2023, was 2.52%, a decrease of 52 basis points compared to 3.04% for the same quarter in 2022[142]. - Noninterest income for Q2 2023 totaled $978,000, an increase of $170,000 or 21.0% compared to $808,000 in Q2 2022[147]. - Noninterest expense for Q2 2023 was $7.2 million, up $701,000 or 10.8% from $6.5 million in Q2 2022, primarily due to a $292,000 increase in FDIC premiums and a $200,000 increase in salaries and employee benefits[147]. - Income tax expense for Q2 2023 was $1.1 million, a decrease of $99,000 from $1.2 million in Q2 2022, with an effective tax rate of approximately 20.0%[148]. Assets and Liabilities - Total assets as of June 30, 2023, were $1.909 billion, compared to $1.597 billion as of June 30, 2022[155]. - Total liabilities as of June 30, 2023, were $1.764 billion, up from $1.468 billion in the previous year[155]. - Total interest-earning assets for Q2 2023 were $1.817 billion, with interest earned of $26.225 million and an average yield of 5.76%[155]. - The average outstanding balance of loans and leases for Q2 2023 was $1.628 billion, with interest earned of $23.684 million and an average yield of 5.82%[155]. - Total interest-earning assets increased to $1,776,957 thousand in June 2023, up from $1,447,152 thousand in June 2022, representing a growth of 22.7%[157]. - Total assets reached $1,867,082 thousand as of June 30, 2023, up from $1,526,465 thousand in June 2022, marking an increase of 22.4%[157]. - Total liabilities increased to $1,723,393 thousand in June 2023, compared to $1,398,654 thousand in June 2022, reflecting a growth of 23.2%[157]. Equity and Capital - Stockholders' equity increased to $147.3 million at June 30, 2023, an increase of $8.1 million, or 5.8%, from $139.2 million at December 31, 2022[139]. - Equity increased to $143,689 thousand in June 2023, up from $127,811 thousand in June 2022, representing a growth of 12.4%[157]. - Cash, unpledged securities, and deposits in other financial institutions increased by $78.7 million, or 50.9%, to $233.1 million at June 30, 2023, compared to $154.4 million at December 31, 2022[169]. - Additional borrowing capacity at the FHLB increased by $18.3 million, or 9.8%, to $206.2 million at June 30, 2023, from $187.9 million at December 31, 2022[170]. - Additional borrowing capacity at the FRB rose by $28.9 million, or 27.5%, to $134.0 million at June 30, 2023, compared to $105.1 million at December 31, 2022[171]. Risk and Compliance - Management believes there has been no material change in the Company's market risk as of June 30, 2023[180]. - The Company maintains effective disclosure controls and procedures as of the quarter ended June 30, 2023[187]. - There are various legal proceedings involving CFBank, but management does not believe any pending legal proceedings would materially affect financial condition[189]. - The Company has not made any changes in internal controls over financial reporting that materially affect its reporting[187]. - Risks and uncertainties could cause actual results to differ materially from anticipated results, as detailed in the risk factors section of the Annual Report[190]. Other Information - The company recorded a net current-period other comprehensive loss of $148,000 for Q2 2023, compared to a loss of $217,000 in Q2 2022[151]. - The company completed the sale of its Worthington headquarters building in May 2023, which was initially contracted for $2.010 million[152]. - Annual debt service on the subordinated debentures is approximately $413,000, with a total rate of 8.01% in effect at June 30, 2023[176]. - The annual debt service on the Company's $10 million of fixed-to-floating rate subordinated notes is $700,000, with a fixed rate of 7.00% until December 2023[177]. - The FDIC provides deposit insurance coverage up to $250,000 per depositor, which supports CFBank's deposit retention strategy[174]. - CFBank had $65.0 million of availability in unused lines of credit with two commercial banks as of June 30, 2023[172].