WORTHINGTON, Ohio, Aug. 14, 2014 /PRNewswire/ -- Central
Federal Corporation (NASDAQ: CFBK) (the "Company") announced that
net income for the three months ended June
30, 2014 totaled $98,000 and
increased $652,000 compared to a net
loss of $554,000, for the three
months ended June 30, 2013. The
increase in net income for the quarter was primarily due to a
$749,000 increase in net interest
income, a $89,000 increase in
noninterest income and a $216,000
decrease in provision expense, offset by an $402,000 increase in noninterest expense.
Net income attributable to common stockholders for the three months
ended June 30, 2014, totaled
$39,000, or $0.00 per diluted common share, and increased
$593,000 compared to a net loss
attributable to common stockholders of $554,000, or $(0.04) per diluted common share, for the three
months ended June 30, 2013. For
the three months ended June 30, 2014,
the preferred dividend on the Company's Series B Preferred Stock
reduced net income attributable to common stockholders by
$59,000, while there was no impact
for the three months ended June 30,
2013.
The net loss for the six months ended June 30, 2014 totaled $116,000 and decreased $1.2 million, or 91.5%, compared to a net loss of
$1.4 million for the six months ended
June 30, 2013, primarily due to a
$1.3 million increase in net interest
income, a $201,000 increase in
noninterest income and a $522,000
decrease in provision expense, partially offset by a $799,000 increase in noninterest expense.
The net loss attributable to common stockholders for the six
months ended June 30, 2014, totaled
$175,000, or $(0.01) per diluted common share, and decreased
$1.2 million, or 87.2%, compared to
the net loss attributable to common shareholders of $1.4 million, or $(0.09) per diluted common share, for the six
months ended June 30, 2013. For
the six months ended June 30, 2014,
the preferred dividend on the Company's Series B Preferred Stock
increased the net loss attributable to common stockholders by
$59,000, while there was no impact
for the six months ended June 30,
2013.
Timothy T O'Dell, CEO, commented: "We are pleased that our
continued focus on improving key metrics, including improving
credit quality and profitability, continues to pay off and has
resulted in a profitable quarter. Our key trends continue to
improve and move in the right direction; our net interest income
continues to grow and drive our core earnings, while our criticized
and classified assets continue to decline."
"In addition, we have invested in infrastructure by adding depth
in credit and loan administration along with customer
support. Also, we are focusing on core deposit growth and
seeking to expand non-credit fee income by emphasizing corporate
treasury management relationships. Ongoing efforts to improve our
margin continue to reflect a positive trend. All of these
initiatives are directed toward increasing earnings while at the
same time improving our operating risk profile. Business
banking continues to perform well particularly in developing
quality loans and relationships. Residential mortgage lending
volumes also are increasing. We remain grateful to our
customers for entrusting us with their business."
Overview of Results
Net interest income. Net interest income
totaled $2.0 million for the quarter
ended June 30, 2014 and increased
$749,000, or 57.9%, compared to
$1.3 million for the quarter ended
June 30, 2013. The increase in net
interest income was primarily due to a $644,000, or 35.1%, increase in interest income,
coupled with a $105,000, or 19.4%,
decrease in interest expense. The increase in interest income
was primarily attributed to a $39.6
million, or 18.6%, increase in average interest-earning
assets outstanding, a 47 bps increase in average yield and improved
mix. The decrease in interest expense was attributed to a 31 bps
reduction in the average cost of funds on interest-bearing
liabilities, and improved mix from noninterest-bearing
deposits. As a result, the net interest margin of 3.24% for
the quarter ended June 30, 2014
improved 80 bps compared to the net interest margin of 2.44% for
the quarter ended June 30, 2013.
Net interest income totaled $3.8
million for the six months ended June
30, 2014 and increased $1.3
million, or 53.4%, compared to $2.5
million for the six months ended June
30, 2013. The increase in net interest income was primarily
due to a $1.1 million, or 32.1%,
increase in interest income, coupled with a $188,000, or 17.7%, decrease in interest
expense. The increase in interest income was primarily
attributed to a $38.4 million, or
18.8%, increase in average interest-earning assets outstanding, a
37 bps increase in average yield and improved mix. The decrease in
interest expense was attributed to a 31 bps reduction in the
average cost of funds on interest-bearing liabilities, and improved
mix from noninterest- bearing deposits. As a result, the net
interest margin of 3.13% for the six months ended June 30, 2014 improved 70 bps compared to the net
interest margin of 2.43% for the six months ended June 30, 2013.
Robert E Hoeweler, Chairman of the Board, added, "Since the
recapitalization of Central Federal Corporation in August 2012, we believe the new team has returned
viability to the organization through a strategy comprised of
controlled relationship-driven loan growth, expense management, and
prudent policies, and have returned CFBank to again being able to
provide loans and banking services to the communities in which we
have a presence. All of this has been accomplished is less
than two years."
Provision for loan losses. The provision for
loan losses totaled $108,000 for the
quarter ended June 30, 2014 and
decreased $216,000, or 66.7%,
compared to $324,000 for the quarter
ended June 30, 2013. The
decrease in the provision for loan losses for the quarter ended
June 30, 2014 was primarily due to
improved credit quality and a decrease in special mention and
substandard loans, which more than offset the provision for growth
in the portfolio for new loans generated in 2014, and a decrease in
net recoveries. Net recoveries decreased $59,000 due to the fact that there were no net
recoveries for the quarter ended June 30,
2014 compared to net recoveries of $59,000 for the quarter ended June 30, 2013.
The provision for loan losses totaled $128,000 for the six months ended June 30, 2014 and decreased $522,000, or 80.3%, compared to $650,000 for the six months ended June 30, 2013. The decrease in the
provision for loan losses for the six months ended June 30, 2014 was primarily due to improved
credit quality and a decrease in special mention and substandard
loans, which more than offset the provision for growth in the
portfolio for new loans generated in 2014, and a slight decrease in
net recoveries. Net recoveries decreased $164,000 due to the fact that there $14,000 in net recoveries for the six months
ended June 30, 2014 compared to net
recoveries of $178,000 for the six
months ended June 30, 2013.
Noninterest income. Noninterest income
for the quarter ended June 30, 2014
totaled $358,000 and increased
$89,000, or 33.1%, compared to
$269,000 for the quarter ended
June 30, 2013. The increase was
primarily due to a $41,000 increase
in other noninterest income, a $25,000 increase in net gain on sale of loans,
and a $23,000 increase in service
charges. The $41,000 increase in
other noninterest income included $18,000 of revenue resulting from sales
activities from the Company's joint ventures. The increase in
net gain on sales of loans was due to increases in mortgage sales
activity related to the development of the mortgage department and
ramp up of the mortgage business.
Noninterest income for the six months ended June 30, 2014 totaled $603,000 and increased $201,000, or 50.0%, compared to $402,000 for the six months ended June 30, 2013. The increase was primarily due to
a $112,000 increase in other
noninterest income, a $53,000
increase in service charges, and a $36,000 increase in net gain on sale of loans.
The $112,000 increase in other
noninterest income included $48,000
of revenue resulting from sales activities from the Company's joint
ventures. The increase in net gains on sale of loans is due to
increased sales activities associated with the Company's ramp up
and expansion of the mortgage business. Service charges increased
due to increases in account activity and pricing.
Noninterest expense.
Noninterest expense increased $402,000, or 22.4%, and totaled $2.2 million for the quarter ended June 30, 2014, compared to $1.8 million for the quarter ended June 30, 2013. The increase in noninterest
expense during the three months ended June
30, 2014 was primarily due to a $90,000 increase in salaries and employee
benefits, an $82,000 increase in
professional fees, a $69,000 increase
in foreclosed asset expense and a $51,000 increase in occupancy and equipment.
Salaries and benefit expenses increased primarily due to the
investment in mortgage personnel as this business line was ramped
up in the latter part of 2013. Professional fees increased
due to increased legal and workout fees and increased consulting
fees associated with special project work related to the mortgage
division. The increase in occupancy and equipment expenses
related to rent expense, leasehold improvements and associated
utilities associated with our growth and expansion.
Noninterest expense increased $799,000, or 22.2%, and totaled $4.4 million for the six months ended
June 30, 2014, compared to
$3.6 million for the six months ended
June 30, 2013. The increase in
noninterest expense during the six months ended June 30, 2014 was primarily due to a $301,000 increase in salaries and employee
benefits, a $167,000 increase in
professional fees, a $134,000
increase in occupancy and equipment and a $99,000 increase in foreclosed asset expense.
Salaries and benefit expenses increased primarily due to the
investment in the mortgage personnel as this business line was
ramped up in the latter part of 2013. Professional fees
increased due to increased legal and workout fees, increased audit,
tax and accounting fees, and increased consulting fees associated
with special project work related to the mortgage division.
The increase in occupancy and equipment expenses related to rent
expense, leasehold improvements and utilities associated with our
growth and expansion. The increase in foreclosed asset expense was
due to increased expenses associated with one multi-family REO
property in Mansfield, Ohio.
Thad Perry, President, commented,
"Our loan production office in the greater Cleveland area, which we opened during the
first quarter, has been serving us well in bringing in new business
relationships, as well as enabling us to continue to build our
operations and infrastructure commensurate with our
growth."
Balance Sheet Activity
General. Assets totaled $294.5 million at June 30,
2014 and increased $38.7
million, or 15.1%, from $255.7
million at December 31,
2013. The increase was primarily due to a $40.5 million increase in net loan balances,
partially offset by a $1.0 decrease
in securities available for sale and a $496,000 decrease in interest bearing deposits in
other financial institutions related to repayments and
maturities.
Cash and cash equivalents. Cash and
cash equivalents totaled $18.9
million at June 30, 2014 and
decreased $279,000, or 1.5%, from
$19.2 million at December 31, 2013. The decrease was a result of
funding loan growth in the pipeline.
Securities. Securities available for sale
totaled $8.6 million at June 30, 2014 and decreased $1.0 million, or 10.7%, compared to $9.7 million at December
31, 2013. The decrease was due to maturities and
repayments.
Loans. Net loans totaled $247.7 million at June 30,
2014 and increased 40.5 million, or 19.6%, from $207.1 million at December
31, 2013. The increase was primarily due to a $12.3 million increase in commercial loan
balances, a $13.2 million increase in
construction loan balances and a $8.4
million increase in single-family residential loan balances,
as a result of an increase in Northpointe loan balances, partially
offset by a $3.9 million decrease in
multi-family loan balances.
Allowance for loan losses (ALLL). The ALLL totaled
$5.9 million at June 30, 2014 and increased $142,000, or 2.5%, from $5.7 million at December
31, 2013. The increase in the ALLL was due to a 19.1%
increase in overall loan balances and net recoveries during the six
months ended June 30, 2014. The
provision for growth was partially offset by continuous improvement
in credit quality. The ratio of the ALLL to total loans was
2.32% at June 30, 2014, compared to
2.69% at December 31, 2013. In
addition, the ratio of the ALLL to nonperforming loans improved to
133.4% at June 30, 2014, compared to
99.9% at December 31, 2013.
Foreclosed assets. Foreclosed assets
totaled $1.6 million at June 30, 2014, and remained constant compared to
$1.6 million at December 31, 2013. Foreclosed assets at
June 30, 2014 consisted of one
multi-family property in Mansfield,
Ohio.
The level of foreclosed assets and charges to foreclosed assets
expense may increase in the future as we increase our workout
efforts related to foreclosed assets, nonperforming and other loans
with credit issues.
Deposits. Deposits totaled
$242.7 million at June 30, 2014 and increased $34.4 million, or 16.5%, from $208.3 million at December
31, 2013. The increase is primarily attributed to a
$26.0 million increase in certificate
of deposit account balances, a $3.6
million increase in checking account balances, a
$2.8 million increase in saving
account balances and a $2.0 million
increase in money market account balances.
Stockholders' equity. Stockholders'
equity totaled $29.2 million at
June 30, 2014, an increase of
$6.3 million, or 27.6%, from
$22.9 million at December 31, 2013. The increase in total
stockholders' equity was primarily attributed to the Company's
completion of the sale of 270,000 shares of its newly
designated 6.25% Non-Cumulative Convertible Perpetual Preferred
Stock, Series B, with a liquidation preference of $25.00 per share ("Series B Preferred Stock"),
for an aggregate offering price of $6,750,000. The 270,000 shares of Series B
Preferred Stock were sold pursuant to the Company's private
placement of up to 480,000 shares of Series B Preferred Stock for
an offering price of $25.00 per
share. After payment of offering expenses, the
Company's net proceeds from its sale of the 270,000 shares of
Series B Preferred Stock were approximately $6,358,000.
Subsequent to the end of the quarter, the Company completed the
sale of the remaining 210,000 shares of Series B Preferred Stock on
July 15, 2014 for an aggregate
offering price of $5,250,000.
After payment of offering expenses, the Company's net proceeds from
its sale of the 210,000 additional shares of Series B Preferred
Stock in the private placement were approximately $5,020,000.
About Central Federal Corporation and CFBank
Central Federal Corporation is the holding company for CFBank, a
federally chartered savings association formed in Ohio in 1892. CFBank has four
full-service banking offices in Fairlawn, Calcutta, Wellsville and Worthington, Ohio. Additionally, CFBank
entered into a new lease agreement in Woodmere, Ohio in Cuyahoga County for the location of a loan
production office effective January 2014. Additional
information about CFBank's banking services and the Company is
available at www.CFBankOnline.com
FORWARD LOOKING STATEMENTS
Statements in this quarterly report and in other communications
by the Company that are not statements of historical fact are
forward-looking statements which are made in good faith by us.
Forward-looking statements include, but are not limited to: (1)
projections of revenues, income or loss, earnings or loss per
common share, capital structure and other financial items; (2)
plans and objectives of the management or Boards of Directors of
Central Federal Corporation (the Holding Company) or CFBank; (3)
statements regarding future events, actions or economic
performance; and (4) statements of assumptions underlying such
statements. Words such as "estimate," "strategy," "may,"
"believe," "anticipate," "expect," "predict," "will," "intend,"
"plan," "targeted," and the negative of these terms, or similar
expressions, are intended to identify forward-looking statements,
but are not the exclusive means of identifying such
statements. Various risks and uncertainties may cause actual
results to differ materially from those indicated by our
forward-looking statements. The following factors could cause
such differences:
- a continuation of difficult economic conditions including high
unemployment rates or other adverse changes in general economic
conditions, economic conditions in the markets we serve, any of
which may affect, among other things, our level of nonperforming
assets, charge-offs, and provision for loan loss expense;
- changes in interest rates that may reduce net interest margin
and impact funding sources;
- the possibility that we will need to make increased provisions
for loan losses;
- our ability to maintain sufficient liquidity to continue to
fund our operations;
- our ability to reduce our high level of nonperforming assets
and the associated operating expenses;
- changes in market rates and prices, including real estate
values, which may adversely impact the value of financial products
including securities, loans and deposits;
- the possibility of other-than-temporary impairment of
securities held in our securities portfolio;
- results of examinations of the Holding Company and CFBank by
the regulators, including the possibility that the regulators may,
among other things, require CFBank to increase its allowance for
loan losses or write-down assets;
- our ability to continue to meet regulatory guidelines,
commitments or requirements to which we are subject;
- our ability to generate profits in the future;
- our ability to raise additional capital in the future, if
necessary;
- changes in tax laws, rules and regulations;
- increases in deposit insurance rates or premiums;
- further legislative and regulatory changes which may increase
compliance costs and burdens;
- unexpected losses of key management;
- various monetary and fiscal policies and regulations, including
those determined by the Board of Governors of the Federal Reserve
System ,the Federal Deposit Insurance Corporation and the Office of
the Comptroller of the Currency;
- competition with other local and regional commercial banks,
savings banks, credit unions and other non-bank financial
institutions;
- our ability to grow our core businesses;
- technological factors which may affect our operations, pricing,
products and services;
- unanticipated litigation, claims or assessments; and
- Management's ability to manage these and other risks.
Forward-looking statements are not guarantees of performance or
results. A forward-looking statement may include a statement
of the assumptions or bases underlying the forward-looking
statement. The Company believes it has chosen these
assumptions or bases in good faith and that they are
reasonable. We caution you, however, that assumptions or
bases almost always vary from actual results, and the differences
between assumptions or bases and actual results can be
material. The forward-looking statements included in this
report speak only as of the date of the report. We undertake
no obligation to publicly release revisions to any forward-looking
statements to reflect events or circumstances after the date of
such statements, except to the extent required by law.
Our filings with the Securities and Exchange Commission (the
"SEC") detail other risks, all of which are difficult to predict
and many of which are beyond our control.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Statements of Operations
|
($ in thousands,
except share data)
|
(unaudited)
|
|
Three months
ended
|
|
|
|
Six months
ended
|
|
|
|
|
June
30,
|
|
|
|
June
30,
|
|
|
|
|
2014
|
|
|
2013
|
|
%
change
|
|
|
2014
|
|
|
2013
|
|
%
change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest
income
|
$
|
2,478
|
|
$
|
1,834
|
|
35%
|
|
$
|
4,681
|
|
$
|
3,545
|
|
32%
|
Total interest
expense
|
|
435
|
|
|
540
|
|
-19%
|
|
|
877
|
|
|
1,065
|
|
-18%
|
Net interest
income
|
|
2,043
|
|
|
1,294
|
|
58%
|
|
|
3,804
|
|
|
2,480
|
|
53%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for loan
losses
|
|
108
|
|
|
324
|
|
-67%
|
|
|
128
|
|
|
650
|
|
-80%
|
Net interest income
after provision for loan losses
|
|
1,935
|
|
|
970
|
|
99%
|
|
|
3,676
|
|
|
1,830
|
|
101%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service
charges on deposit accounts
|
|
106
|
|
|
83
|
|
28%
|
|
|
209
|
|
|
156
|
|
34%
|
Net gain
on sales of loans
|
|
132
|
|
|
107
|
|
23%
|
|
|
149
|
|
|
113
|
|
32%
|
Other
|
|
120
|
|
|
79
|
|
52%
|
|
|
245
|
|
|
133
|
|
84%
|
Noninterest
income
|
|
358
|
|
|
269
|
|
33%
|
|
|
603
|
|
|
402
|
|
50%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries
and employee benefits
|
|
1,051
|
|
|
961
|
|
9%
|
|
|
2,154
|
|
|
1,853
|
|
16%
|
Occupancy and equipment
|
|
135
|
|
|
84
|
|
61%
|
|
|
293
|
|
|
159
|
|
84%
|
Data
processing
|
|
224
|
|
|
143
|
|
57%
|
|
|
431
|
|
|
306
|
|
41%
|
Franchise taxes
|
|
49
|
|
|
85
|
|
-42%
|
|
|
99
|
|
|
170
|
|
-42%
|
Professional fees
|
|
257
|
|
|
175
|
|
47%
|
|
|
554
|
|
|
387
|
|
43%
|
Director
fees
|
|
13
|
|
|
3
|
|
333%
|
|
|
25
|
|
|
8
|
|
213%
|
Postage,
printing and supplies
|
|
57
|
|
|
69
|
|
-17%
|
|
|
141
|
|
|
127
|
|
11%
|
Advertising and promotion
|
|
1
|
|
|
6
|
|
-83%
|
|
|
4
|
|
|
12
|
|
-67%
|
Telephone
|
|
27
|
|
|
21
|
|
29%
|
|
|
52
|
|
|
37
|
|
41%
|
Loan
expenses
|
|
11
|
|
|
9
|
|
22%
|
|
|
15
|
|
|
26
|
|
-42%
|
Foreclosed assets, net
|
|
70
|
|
|
1
|
|
n/m
|
|
|
81
|
|
|
(18)
|
|
n/m
|
Depreciation
|
|
70
|
|
|
53
|
|
32%
|
|
|
122
|
|
|
107
|
|
14%
|
FDIC
premiums
|
|
85
|
|
|
36
|
|
136%
|
|
|
164
|
|
|
147
|
|
12%
|
Amortization of intangibles
|
|
-
|
|
|
10
|
|
-100%
|
|
|
-
|
|
|
19
|
|
-100%
|
Regulatory assessment
|
|
39
|
|
|
39
|
|
0%
|
|
|
78
|
|
|
78
|
|
0%
|
Other
insurance
|
|
33
|
|
|
36
|
|
-8%
|
|
|
69
|
|
|
73
|
|
-5%
|
Other
|
|
73
|
|
|
62
|
|
18%
|
|
|
113
|
|
|
105
|
|
8%
|
Noninterest
expense
|
|
2,195
|
|
|
1,793
|
|
22%
|
|
|
4,395
|
|
|
3,596
|
|
22%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before
income taxes
|
|
98
|
|
|
(554)
|
|
n/m
|
|
|
(116)
|
|
|
(1,364)
|
|
-91%
|
Income tax expense
(benefit)
|
|
-
|
|
|
-
|
|
n/m
|
|
|
-
|
|
|
-
|
|
n/m
|
Net Income
(loss)
|
$
|
98
|
|
$
|
(554)
|
|
n/m
|
|
$
|
(116)
|
|
$
|
(1,364)
|
|
-91%
|
Dividends on Series B
stock
|
|
(59)
|
|
|
-
|
|
n/m
|
|
|
(59)
|
|
|
-
|
|
n/m
|
Earnings (loss)
attributable to common stockholders
|
$
|
39
|
|
$
|
(554)
|
|
n/m
|
|
$
|
(175)
|
|
$
|
(1,364)
|
|
-87%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss)
per common share
|
$
|
0.00
|
|
$
|
(0.04)
|
|
-100%
|
|
$
|
(0.01)
|
|
$
|
(0.09)
|
|
-89%
|
Diluted earnings
(loss) per common share
|
$
|
0.00
|
|
$
|
(0.04)
|
|
-100%
|
|
$
|
(0.01)
|
|
$
|
(0.09)
|
|
-89%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average common shares
outstanding - basic
|
|
15,823,710
|
|
|
15,823,544
|
|
|
|
|
15,823,710
|
|
|
15,823,570
|
|
|
Average common shares
outstanding - diluted
|
|
15,863,968
|
|
|
15,823,544
|
|
|
|
|
15,863,968
|
|
|
15,823,570
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
n/m - not
meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Statements of Financial Condition
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At or for the
three months ended
|
|
($ in
thousands)
|
June
30,
|
|
March
31,
|
|
December
31,
|
|
September
30,
|
|
June
30,
|
|
(unaudited)
|
2014
|
|
2014
|
|
2013
|
|
2013
|
|
2013
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
18,881
|
|
$
|
21,578
|
|
$
|
19,160
|
|
$
|
46,785
|
|
$
|
33,197
|
|
Interest-bearing
deposits in other financial institutions
|
|
1,486
|
|
|
1,486
|
|
|
1,982
|
|
|
1,982
|
|
|
2,726
|
|
Securities available
for sale
|
|
8,635
|
|
|
9,074
|
|
|
9,672
|
|
|
10,544
|
|
|
12,155
|
|
Loans held for
sale
|
|
3,259
|
|
|
4,090
|
|
|
3,285
|
|
|
4,856
|
|
|
629
|
|
Loans
|
|
253,546
|
|
|
214,665
|
|
|
212,870
|
|
|
176,496
|
|
|
185,942
|
|
Less allowance
for loan losses
|
|
(5,871)
|
|
|
(5,763)
|
|
|
(5,729)
|
|
|
(6,171)
|
|
|
(6,065)
|
|
Loans, net
|
|
247,675
|
|
|
208,902
|
|
|
207,141
|
|
|
170,325
|
|
|
179,877
|
|
FHLB stock
|
|
1,942
|
|
|
1,942
|
|
|
1,942
|
|
|
1,942
|
|
|
1,942
|
|
Foreclosed assets,
net
|
|
1,636
|
|
|
1,636
|
|
|
1,636
|
|
|
1,464
|
|
|
1,538
|
|
Premises and
equipment, net
|
|
3,839
|
|
|
3,753
|
|
|
3,547
|
|
|
3,451
|
|
|
5,252
|
|
Assets held for
sale
|
|
-
|
|
|
-
|
|
|
-
|
|
|
2,070
|
|
|
167
|
|
Other intangible
assets
|
|
-
|
|
|
-
|
|
|
-
|
|
|
20
|
|
|
30
|
|
Bank owned life
insurance
|
|
4,600
|
|
|
4,567
|
|
|
4,535
|
|
|
4,503
|
|
|
4,470
|
|
Accrued interest
receivable and other assets
|
|
2,504
|
|
|
1,961
|
|
|
2,848
|
|
|
2,450
|
|
|
2,631
|
|
Total
assets
|
$
|
294,457
|
|
$
|
258,989
|
|
$
|
255,748
|
|
$
|
250,392
|
|
$
|
244,614
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
bearing
|
$
|
30,215
|
|
$
|
30,772
|
|
$
|
27,652
|
|
$
|
24,795
|
|
$
|
23,536
|
|
Interest bearing
|
|
212,506
|
|
|
184,916
|
|
|
180,657
|
|
|
185,881
|
|
|
181,143
|
|
Total deposits
|
|
242,721
|
|
|
215,688
|
|
|
208,309
|
|
|
210,676
|
|
|
204,679
|
|
Short-term Federal
Home Loan Bank advances
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
FHLB
advances
|
|
13,000
|
|
|
13,000
|
|
|
10,000
|
|
|
10,000
|
|
|
10,000
|
|
Other secured
borrowings
|
|
-
|
|
|
-
|
|
|
6,526
|
|
|
-
|
|
|
-
|
|
Advances by borrowers
for taxes and insurance
|
|
168
|
|
|
137
|
|
|
575
|
|
|
174
|
|
|
187
|
|
Accrued interest
payable and other liabilities
|
|
4,240
|
|
|
2,309
|
|
|
2,319
|
|
|
2,428
|
|
|
2,285
|
|
Subordinated
debentures
|
|
5,155
|
|
|
5,155
|
|
|
5,155
|
|
|
5,155
|
|
|
5,155
|
|
Total liabilities
|
|
265,284
|
|
|
236,289
|
|
|
232,884
|
|
|
228,433
|
|
|
222,306
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity
|
|
29,173
|
|
|
22,700
|
|
|
22,864
|
|
|
21,959
|
|
|
22,308
|
|
Total liabilities and
stockholders' equity
|
$
|
294,457
|
|
$
|
258,989
|
|
$
|
255,748
|
|
$
|
250,392
|
|
$
|
244,614
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Financial Highlights
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At or for the
three months ended
|
|
At or for six
months ended
|
($ in thousands
except per share data)
|
|
Jun
30,
|
|
Mar
31,
|
|
Dec
31,
|
|
Sept
30,
|
|
Jun
30,
|
|
|
June
30,
|
(unaudited)
|
|
2014
|
|
2014
|
|
2013
|
|
2013
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
(loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$
|
2,043
|
|
$
|
1,761
|
|
$
|
1,514
|
|
$
|
1,393
|
|
$
|
1,294
|
|
$
|
3,804
|
|
$
|
2,480
|
Provision for loan
losses
|
|
$
|
108
|
|
$
|
20
|
|
$
|
(230)
|
|
$
|
76
|
|
$
|
324
|
|
$
|
128
|
|
$
|
650
|
Noninterest
income
|
|
$
|
358
|
|
$
|
245
|
|
$
|
1,315
|
|
$
|
176
|
|
$
|
269
|
|
$
|
603
|
|
$
|
402
|
Noninterest
expense
|
|
$
|
2,195
|
|
$
|
2,200
|
|
$
|
2,228
|
|
$
|
1,878
|
|
$
|
1,793
|
|
$
|
4,395
|
|
$
|
3,596
|
Net Income
(loss)
|
|
$
|
98
|
|
$
|
(214)
|
|
$
|
831
|
|
$
|
(385)
|
|
$
|
(554)
|
|
$
|
(116)
|
|
$
|
(1,364)
|
Preferred dividends
on Series B stock
|
|
$
|
(59)
|
|
|
n/a
|
|
|
n/a
|
|
|
n/a
|
|
|
n/a
|
|
|
(59)
|
|
|
n/a
|
Earnings (loss)
available to common stockholders
|
|
$
|
39
|
|
$
|
(214)
|
|
$
|
831
|
|
$
|
(385)
|
|
$
|
(554)
|
|
$
|
(175)
|
|
$
|
(1,364)
|
Basic earnings (loss)
per common share
|
|
$
|
0.00
|
|
$
|
(0.01)
|
|
$
|
0.05
|
|
$
|
(0.02)
|
|
$
|
(0.04)
|
|
$
|
(0.01)
|
|
$
|
(0.09)
|
Diluted earnings
(loss) per common share
|
|
$
|
0.00
|
|
$
|
(0.01)
|
|
$
|
0.05
|
|
$
|
(0.02)
|
|
$
|
(0.04)
|
|
$
|
(0.01)
|
|
$
|
(0.09)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance Ratios
(annualized)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets
|
|
|
0.14%
|
|
|
(0.34%)
|
|
|
1.34%
|
|
|
(0.63%)
|
|
|
(0.94%)
|
|
|
(0.09%)
|
|
|
(1.21%)
|
Return on average
equity
|
|
|
1.57%
|
|
|
(3.76%)
|
|
|
14.70%
|
|
|
(6.95%)
|
|
|
(9.77%)
|
|
|
(0.97%)
|
|
|
(11.86%)
|
Average yield on
interest-earning assets
|
|
|
3.92%
|
|
|
3.78%
|
|
|
3.60%
|
|
|
3.50%
|
|
|
3.45%
|
|
|
3.85%
|
|
|
3.48%
|
Average rate paid on
interest-bearing liabilities
|
|
|
0.82%
|
|
|
0.91%
|
|
|
1.04%
|
|
|
1.09%
|
|
|
1.13%
|
|
|
0.86%
|
|
|
1.17%
|
Average interest rate
spread
|
|
|
3.10%
|
|
|
2.87%
|
|
|
2.56%
|
|
|
2.41%
|
|
|
2.32%
|
|
|
2.99%
|
|
|
2.31%
|
Net interest margin,
fully taxable equivalent
|
|
|
3.24%
|
|
|
3.02%
|
|
|
2.69%
|
|
|
2.53%
|
|
|
2.44%
|
|
|
3.13%
|
|
|
2.43%
|
Efficiency
ratio
|
|
|
91.42%
|
|
|
109.67%
|
|
|
78.05%
|
|
|
118.99%
|
|
|
114.08%
|
|
|
99.73%
|
|
|
124.08%
|
Noninterest expense
to average assets
|
|
|
3.21%
|
|
|
3.45%
|
|
|
3.59%
|
|
|
3.06%
|
|
|
3.04%
|
|
|
3.32%
|
|
|
3.18%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core capital ratio
(1)
|
|
|
10.45%
|
|
|
9.64%
|
|
|
9.34%
|
|
|
8.88%
|
|
|
9.19%
|
|
|
10.45%
|
|
|
9.19%
|
Total risk-based
capital ratio (1)
|
|
|
13.01%
|
|
|
12.43%
|
|
|
12.08%
|
|
|
13.28%
|
|
|
13.17%
|
|
|
13.01%
|
|
|
13.17%
|
Tier 1 risk-based
capital ratio (1)
|
|
|
11.75%
|
|
|
11.17%
|
|
|
10.81%
|
|
|
12.00%
|
|
|
11.89%
|
|
|
11.75%
|
|
|
11.89%
|
Tangible capital
ratio (1)
|
|
|
10.45%
|
|
|
9.64%
|
|
|
9.34%
|
|
|
8.88%
|
|
|
9.19%
|
|
|
10.45%
|
|
|
9.19%
|
Equity to total
assets at end of period
|
|
|
9.91%
|
|
|
8.76%
|
|
|
8.94%
|
|
|
8.77%
|
|
|
9.12%
|
|
|
9.91%
|
|
|
9.12%
|
Tangible equity to
tangible assets
|
|
|
9.91%
|
|
|
8.76%
|
|
|
8.94%
|
|
|
8.76%
|
|
|
9.11%
|
|
|
9.91%
|
|
|
9.11%
|
Book value per common
share
|
|
$
|
1.42
|
|
$
|
1.43
|
|
$
|
1.44
|
|
$
|
1.39
|
|
$
|
1.41
|
|
$
|
1.42
|
|
$
|
1.41
|
Tangible book value
per common share
|
|
$
|
1.42
|
|
$
|
1.43
|
|
$
|
1.44
|
|
$
|
1.39
|
|
$
|
1.41
|
|
$
|
1.42
|
|
$
|
1.41
|
Period-end market
value per common share
|
|
$
|
1.48
|
|
$
|
1.55
|
|
$
|
1.33
|
|
$
|
1.41
|
|
$
|
1.31
|
|
$
|
1.48
|
|
$
|
1.31
|
Period-end common
shares outstanding
|
|
|
15,823,710
|
|
|
15,823,710
|
|
|
15,823,710
|
|
|
15,823,710
|
|
|
15,823,710
|
|
|
15,823,710
|
|
|
15,823,710
|
Average basic common
shares outstanding
|
|
|
15,823,710
|
|
|
15,823,710
|
|
|
15,823,710
|
|
|
15,823,644
|
|
|
15,823,544
|
|
|
15,823,710
|
|
|
15,823,570
|
Average diluted
common shares outstanding
|
|
|
15,863,968
|
|
|
15,823,710
|
|
|
15,823,710
|
|
|
15,823,644
|
|
|
15,823,544
|
|
|
15,863,968
|
|
|
15,823,570
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset
Quality
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming
loans
|
|
$
|
4,400
|
|
$
|
5,564
|
|
$
|
5,738
|
|
$
|
5,391
|
|
$
|
5,440
|
|
$
|
4,400
|
|
$
|
5,440
|
Nonperforming loans
to total loans
|
|
|
1.74%
|
|
|
2.59%
|
|
|
2.70%
|
|
|
3.05%
|
|
|
2.93%
|
|
|
1.74%
|
|
|
2.93%
|
Nonperforming assets
to total assets
|
|
|
2.05%
|
|
|
2.78%
|
|
|
2.88%
|
|
|
2.74%
|
|
|
2.85%
|
|
|
2.05%
|
|
|
2.85%
|
Allowance for loan
losses to total loans
|
|
|
2.32%
|
|
|
2.68%
|
|
|
2.69%
|
|
|
3.50%
|
|
|
3.26%
|
|
|
2.32%
|
|
|
3.26%
|
Allowance for loan
losses to nonperforming loans
|
|
|
133.43%
|
|
|
103.57%
|
|
|
99.85%
|
|
|
114.47%
|
|
|
111.50%
|
|
|
133.43%
|
|
|
111.50%
|
Net charge-offs
(recoveries)
|
|
$
|
-
|
|
$
|
(14)
|
|
$
|
212
|
|
$
|
(30)
|
|
$
|
(59)
|
|
$
|
(14)
|
|
$
|
(178)
|
Annualized net
charge-offs (recoveries) to average loans
|
|
|
0.00%
|
|
|
(0.03%)
|
|
|
0.47%
|
|
|
(0.07%)
|
|
|
(0.14%)
|
|
|
(0.01%)
|
|
|
(0.23%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
Balances
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
$
|
227,921
|
|
$
|
209,895
|
|
$
|
173,064
|
|
$
|
167,149
|
|
$
|
157,435
|
|
$
|
218,908
|
|
$
|
151,163
|
Assets
|
|
$
|
273,941
|
|
$
|
255,107
|
|
$
|
248,545
|
|
$
|
245,279
|
|
$
|
235,616
|
|
$
|
264,524
|
|
$
|
225,872
|
Stockholders'
equity
|
|
$
|
24,951
|
|
$
|
22,787
|
|
$
|
22,611
|
|
$
|
22,153
|
|
$
|
22,671
|
|
$
|
23,869
|
|
$
|
23,008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Regulatory capital ratios of CFBank
|
|
|
|
|
|
|
|
|
|
|
SOURCE Central Federal Corporation