WORTHINGTON, Ohio,
Nov. 12, 2014 /PRNewswire/ --
Highlights
- Net income for the three months ended
September 30, 2014 totaled
$286,000 and increased $671,000, compared to a net loss of $385,000 for the three months ended September 30, 2013.
- Net income for the nine months ended
September 30, 2014 totaled
$170,000 and increased $1.9 million, compared to a net loss of
$1.7 million for the nine months
ended September 30, 2013.
- Net interest income totaled $2.4 million for the three months ended
September 30, 2014 and increased
$1.0 million, or 75.0%, compared to
$1.4 million for the quarter ended
September 30, 2013.
- Nonperforming loans decreased $2.0 million, or 34.9%, and totaled $3.7 million at September
30, 2014, compared to $5.7
million at December 31,
2013.
Central Federal Corporation (NASDAQ: CFBK) (the "Company")
announced that net income for the three months ended September 30, 2014 totaled $286,000 and increased $671,000, compared to a net loss of $385,000 for the three months ended September 30, 2013, primarily due to a
$1.0 million increase in net interest
income, a $270,000 increase in
noninterest income, partially offset by a $644,000 increase in noninterest expense.
Net income attributable to common stockholders for the three months
ended September 30, 2014 totaled
$112,000, or $0.01 per diluted common share, and increased
$497,000 compared to a net loss
attributable to common stockholders of $385,000, or $(0.02) per diluted common share, for the three
months ended September 30,
2013. For the three months ended September 30, 2014, the Company's payment of
preferred dividends on the Series B Preferred Stock reduced net
income attributable to common stockholders by $174,000, while there was no impact for the three
months ended September 30, 2013.
Net income for the nine months ended September 30, 2014 totaled $170,000 and increased $1.9 million, compared to a net loss of
$1.7 million for the nine months
ended September 30, 2013, primarily
due to a $2.4 million increase in net
interest income, a $471,000 increase
in noninterest income and a $523,000
decrease in provision expense, partially offset by a $1.4 million increase in noninterest expense.
The net loss attributable to common stockholders for the nine
months ended September 30, 2014
totaled $63,000, or $(0.00) per diluted common share, and decreased
$1.7 million, or 96.4%, compared to
the net loss attributable to common shareholders of $1.7 million, or $(0.11) per diluted common share, for the nine
months ended September 30,
2013. For the nine months ended September 30, 2014, the Company's payment of
preferred dividends on the Series B Preferred Stock impacted the
net loss attributable to common stockholders by $233,000, while there was no impact for the nine
months ended September 30, 2013.
Timothy T O'Dell, CEO, commented, "I am pleased to report
that during the third quarter key operating metrics, including
earnings and credit quality, reflect consistently improving
quarterly trends since the recapitalization of the bank in
2012. Net interest income, the primary driver of our core
earnings, increased by 75% or roughly a $1
million improvement as compared to the same period last
year. Credit quality also continued to show improvement with
further reductions in nonperforming loans. Also, our
allowance for loans loss coverage ratio to nonperforming loans
improved to 167% at September 30,
2014 compared to 100% at December 31,
2013."
"During this quarter, we successfully completed our $12 million private placement of Series B
Preferred Stock, allowing us to further strengthen our balance
sheet and capital levels as well as position CFBank to continue to
take advantage of quality business and loan opportunities. Our loan
and new business pipelines remain solid. In addition,
residential mortgage loan volumes also have increased.
Additionally, we are gaining traction with our initiatives for
growing and expanding our core deposit base."
"Management remains focused on relentless execution, which has
resulted in consistent quarter over quarter improvements in key
fundamental measurements of performance including earnings and
credit quality, along with further strengthening our
infrastructure, processes and procedures. Based upon the
success of our relationship business model in attracting quality
customers, along with our presence in three major metro markets, we
remain enthused about our prospects for continuing these positive
trajectories."
Overview of Results
Net interest income. Net interest income
totaled $2.4 million for the quarter
ended September 30, 2014 and
increased $1.0 million, or 75.0%,
compared to $1.4 million for the
quarter ended September 30, 2013. The
increase in net interest income was primarily due to a $988,000, or 51.2%, increase in interest income,
coupled with a $56,000, or 10.4%,
decrease in interest expense. The increase in interest income
was primarily attributed to a $59.2
million, or 26.8%, increase in average interest-earning
assets outstanding, coupled with a 68 bps increase in average yield
and improved mix. The decrease in interest expense was attributed
to a 26 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 3.49% for the quarter ended September 30, 2014 improved 96 bps compared to
the net interest margin of 2.53% for the quarter ended September 30, 2013.
Net interest income totaled $6.2
million for the nine months ended September 30, 2014 and increased $2.4 million, or 61.1%, compared to $3.9 million for the nine months ended
September 30, 2013. The increase in
net interest income was primarily due to a $2.1 million, or 38.8%, increase in interest
income, coupled with a $244,000, or
15.2%, decrease in interest expense. The increase in interest
income was primarily attributed to a $45.3
million, or 21.6%, increase in average interest-earning
assets outstanding, coupled with a 49 bps increase in average yield
and improved mix. The decrease in interest expense was attributed
to a 30 bps reduction in the average cost of funds on
interest-bearing liabilities, and improved mix from
noninterest-bearing deposits, which increased $14.0 million, or 61.0%. As a result, the
net interest margin of 3.26% for the nine months ended September 30, 2014 improved 80 bps compared to
the net interest margin of 2.46% for the nine months ended
September 30, 2013.
Robert E Hoeweler, Chairman of the Board, added, "The execution
of our business plan continues to reach the objectives of our
management team. We successfully completed our $12 million private placement of Series B
Preferred Stock, and have been successful in redeploying the
proceeds from the private placement into profitable business
relationships. Our year to date net income through September 30, 2014, reflects a $1.9 million improvement over the same period for
the prior year. Speaking for the team, we appreciate the
continuing support of our stakeholders."
Provision for loan losses. The provision for
loan losses totaled $75,000 for the
quarter ended September 30, 2014 and
decreased $1,000, or 1.3%, compared
to $76,000 for the quarter ended
September 30, 2013. The
decrease in the provision for loan losses for the quarter ended
September 30, 2014 was primarily due
to improved credit quality and a decrease in special mention and
substandard loans. Net recoveries for the quarter ended
September 30, 2014 totaled
$310,000 and increased $280,000, compared to net recoveries of
$30,000 for the quarter ended
September 30, 2013, primarily related
to a large recovery of one commercial real estate loan.
The provision for loan losses totaled $203,000 for the nine months ended September 30, 2014 and decreased $523,000, or 72.0%, compared to $726,000 for the nine months ended September 30, 2013. The decrease in the
provision for loan losses for the nine months ended September 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. Net recoveries
increased $116,000 due to the fact
that there were $324,000 in net
recoveries for the nine months ended September 30, 2014, compared to net recoveries of
$208,000 for the nine months ended
September 30, 2013.
Noninterest income. Noninterest income
for the quarter ended September 30,
2014 totaled $446,000 and
increased $270,000, or 153.4%,
compared to $176,000 for the quarter
ended September 30, 2013. The
increase was primarily due to a $208,000 increase in net gain on sale of loans, a
$55,000 increase in other noninterest
income and a $7,000 increase in
service charges. 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. The $55,000 increase
in other noninterest income included $30,000 of revenue resulting from sales
activities from the Company's joint ventures.
Noninterest income for the nine months ended September 30, 2014 totaled $1.0 million and increased $471,000, or 81.5%, compared to $578,000 for the nine months ended September 30, 2013. The increase was primarily
due to a $244,000 increase in net
gains on sales of loans, a $168,000
increase in other noninterest income and a $60,000 increase in service charges. 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. The $168,000
increase in other noninterest income included $78,000 of revenue resulting from sales
activities from the Company's joint ventures.
Noninterest expense.
Noninterest expense increased $644,000, or 34.3%, and totaled $2.5 million for the quarter ended September 30, 2014, compared to $1.9 million for the quarter ended September 30, 2013. The increase in
noninterest expense during the three months ended September 30, 2014 was primarily due to a
$207,000 increase in salaries and
employee benefits, a $171,000
increase in foreclosed asset expense, a $106,000 increase in professional fees, a
$68,000 increase in occupancy and
equipment expense, and a $65,000
increase in data processing expense.
Salaries and benefit expenses increased primarily due to the
full year effect of the investment in mortgage personnel as this
business line was ramped up in the latter part of 2013, coupled
with an increase in personnel in the credit administration and
treasury management area. Foreclosed asset expense increased
related to maintenance and light rehabilitation incurred to
increase occupancy levels, along with increased operating
costs. Professional fees increased due to increased legal and
workout fees and increased consulting fees associated with project
work related to the mortgage division and credit area. The
increase in occupancy and equipment expenses resulted from
increases in rent expense, leasehold improvements and associated
utilities associated with our growth and expansion. The
increase in data processing expenses is driven by expanded IT
services associated with the aforementioned growth and
expansion.
Noninterest expense increased $1.4
million, or 26.4%, and totaled $6.9
million for the nine months ended September 30, 2014, compared to $5.5 million for the nine months ended
September 30, 2013. The
increase in noninterest expense during the nine months ended
September 30, 2014 was primarily due
to a $508,000 increase in salaries
and employee benefits, a $273,000
increase in professional fees, a 270,000 increase in foreclosed
asset expense, a $202,000 increase in
occupancy and equipment expense and a $190,000 increase in data processing expense.
Salaries and benefit expenses increased primarily due to the
full year effect of the investment in mortgage personnel as this
business line was ramped up in the latter part of 2013, coupled
with an increase in personnel in the credit administration and
treasury management area. Professional fees increased due to
increased legal and workout fees and increased consulting fees
associated with project work related to the mortgage division and
credit area. Foreclosed asset expense increased related to
maintenance and light rehabilitation incurred to increase occupancy
levels, along with increased operating costs. The increase in
occupancy and equipment expenses resulted from increases in rent
expense, leasehold improvements and associated utilities associated
with our growth and expansion. The increase in data
processing expenses is driven by expanded IT services associated
with the aforementioned growth and expansion.
Thad Perry, President, commented,
"With our newly opened loan production office in Woodmere, Ohio, on Chagrin Boulevard, we are
particularly pleased to be a part of the growth and revitalization
occurring in the Cleveland
market. The entrepreneurs and closely held businesses we
serve are helping drive sustainable economic changes in the
Northeast Ohio
corridor."
Balance Sheet Activity
General. Assets totaled $307.6 million at September 30, 2014 and increased $51.9 million, or 20.3%, from $255.7 million at December
31, 2013. The increase was primarily due to a
$41.0 million increase in net loan
balances, a $11.0 million increase in
cash and cash equivalents and a $2.6
million increase in loans held for sale, partially offset by
a $1.5 million decrease in securities
available for sale and a $1.2 million
decrease in interest-bearing deposits in other financial
institutions related to repayments and maturities.
Cash and cash equivalents. Cash and
cash equivalents totaled $30.2
million at September 30, 2014
and increased $11.0 million, or
57.5%, from $19.2 million at
December 31, 2013. The increase was a
result of management's efforts to increase deposit activity in
order to fund anticipated loan growth.
Securities. Securities available for sale
totaled $8.1 million at September 30, 2014 and decreased $1.5 million, or 15.8%, compared to $9.7 million at December
31, 2013. The decrease was due to maturities and
repayments.
Loans. Net loans totaled $248.2 million at September 30, 2014 and increased $41.0 million, or 19.8%, from $207.1 million at December
31, 2013. The increase was primarily due to a $12.2 million increase in commercial loan
balances, a $10.6 million increase in
commercial real estate loan balances, a $8.8
million increase in construction loan balances and a
$8.3 million increase in
single-family residential loan balances, partially offset by a
$2.3 million decrease in multi-family
loan balances.
Allowance for loan losses (ALLL). The ALLL totaled
$6.3 million at September 30, 2014 and increased $527,000, or 9.2%, from $5.7 million at December
31, 2013. The increase in the ALLL was due to a 19.5%
increase in overall loan balances and net recoveries during the
nine months ended September 30, 2014.
The provision for growth was partially offset by continuous
improvement in credit quality. While the ratio of the ALLL to
total loans decreased to 2.46% at September
30, 2014, from 2.69% at December 31,
2013, the ratio of the ALLL to nonperforming loans improved
to 167.6% at September 30, 2014,
compared to 99.9% at December 31,
2013.
Foreclosed assets. Foreclosed assets
totaled $1.6 million at September 30, 2014, and remained constant
compared to $1.6 million at
December 31, 2013. Foreclosed
assets at September 30, 2014 and
December 31, 2013 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
$251.0 million at September 30, 2014 and increased $42.7 million, or 20.5%, from $208.3 million at December
31, 2013. The increase is primarily attributed to a
$26.9 million increase in certificate
of deposit account balances, a $7.5
million increase in checking account balances, a
$5.6 million increase in money market
account balances and a $2.7 million
increase in savings account balances.
Stockholders' equity. Stockholders'
equity totaled $34.4 million at
September 30, 2014, an increase of
$11.5 million, or 50.3%, 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 480,000 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 $12,000,000. The Series B Preferred Stock
was sold by the Company in May and July
2014 with the assistance of McDonald Partners, LLC, as
placement agent, on a best efforts basis. After payment
of approximately $482,000 in
placement fees to McDonald Partners, LLC and approximately
$149,000 of other offering expenses,
the Company's net proceeds from its sale of the 480,000 shares of
Series B Preferred Stock were approximately $11,369,000.
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 and a loan production office
in Woodmere, Ohio (Cuyahoga County). 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 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
|
|
|
|
|
Nine months
ended
|
|
|
|
|
September
30,
|
|
|
|
|
September
30,
|
|
|
|
|
2014
|
|
|
2013
|
|
%
change
|
|
|
2014
|
|
|
2013
|
|
%
change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest
income
|
$
|
2,919
|
|
$
|
1,931
|
|
51%
|
|
$
|
7,600
|
|
$
|
5,476
|
|
39%
|
Total interest
expense
|
|
482
|
|
|
538
|
|
-10%
|
|
|
1,359
|
|
|
1,603
|
|
-15%
|
Net interest
income
|
|
2,437
|
|
|
1,393
|
|
75%
|
|
|
6,241
|
|
|
3,873
|
|
61%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for loan
losses
|
|
75
|
|
|
76
|
|
-1%
|
|
|
203
|
|
|
726
|
|
-72%
|
Net interest income
after provision for loan losses
|
|
2,362
|
|
|
1,317
|
|
79%
|
|
|
6,038
|
|
|
3,147
|
|
92%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service
charges on deposit accounts
|
|
99
|
|
|
92
|
|
8%
|
|
|
308
|
|
|
248
|
|
24%
|
Net gain
on sales of loans
|
|
207
|
|
|
(1)
|
|
n/m
|
|
|
356
|
|
|
112
|
|
218%
|
Other
|
|
140
|
|
|
85
|
|
65%
|
|
|
385
|
|
|
218
|
|
77%
|
Noninterest
income
|
|
446
|
|
|
176
|
|
153%
|
|
|
1,049
|
|
|
578
|
|
81%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries
and employee benefits
|
|
1,177
|
|
|
970
|
|
21%
|
|
|
3,331
|
|
|
2,823
|
|
18%
|
Occupancy and equipment
|
|
138
|
|
|
70
|
|
97%
|
|
|
431
|
|
|
229
|
|
88%
|
Data
processing
|
|
223
|
|
|
158
|
|
41%
|
|
|
654
|
|
|
464
|
|
41%
|
Franchise taxes
|
|
51
|
|
|
84
|
|
-39%
|
|
|
150
|
|
|
254
|
|
-41%
|
Professional fees
|
|
317
|
|
|
211
|
|
50%
|
|
|
871
|
|
|
598
|
|
46%
|
Director
fees
|
|
39
|
|
|
5
|
|
680%
|
|
|
64
|
|
|
13
|
|
392%
|
Postage,
printing and supplies
|
|
49
|
|
|
42
|
|
17%
|
|
|
190
|
|
|
169
|
|
12%
|
Advertising and promotion
|
|
36
|
|
|
20
|
|
80%
|
|
|
40
|
|
|
32
|
|
25%
|
Telephone
|
|
31
|
|
|
18
|
|
72%
|
|
|
83
|
|
|
55
|
|
51%
|
Loan
expenses
|
|
12
|
|
|
29
|
|
-59%
|
|
|
27
|
|
|
55
|
|
-51%
|
Foreclosed assets, net
|
|
167
|
|
|
(4)
|
|
n/m
|
|
|
248
|
|
|
(22)
|
|
n/m
|
Depreciation
|
|
57
|
|
|
54
|
|
6%
|
|
|
179
|
|
|
161
|
|
11%
|
FDIC
premiums
|
|
105
|
|
|
80
|
|
31%
|
|
|
269
|
|
|
227
|
|
19%
|
Amortization of intangibles
|
|
-
|
|
|
11
|
|
n/m
|
|
|
-
|
|
|
30
|
|
n/m
|
Regulatory assessment
|
|
42
|
|
|
41
|
|
2%
|
|
|
120
|
|
|
119
|
|
1%
|
Other
insurance
|
|
30
|
|
|
37
|
|
-19%
|
|
|
99
|
|
|
110
|
|
-10%
|
Other
|
|
48
|
|
|
52
|
|
-8%
|
|
|
161
|
|
|
157
|
|
3%
|
Noninterest
expense
|
|
2,522
|
|
|
1,878
|
|
34%
|
|
|
6,917
|
|
|
5,474
|
|
26%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before
income taxes
|
|
286
|
|
|
(385)
|
|
n/m
|
|
|
170
|
|
|
(1,749)
|
|
n/m
|
Income tax expense
(benefit)
|
|
-
|
|
|
-
|
|
n/m
|
|
|
-
|
|
|
-
|
|
n/m
|
Net Income
(loss)
|
$
|
286
|
|
$
|
(385)
|
|
n/m
|
|
$
|
170
|
|
$
|
(1,749)
|
|
n/m
|
Dividends on Series B
stock
|
|
(174)
|
|
|
-
|
|
n/m
|
|
|
(233)
|
|
|
-
|
|
n/m
|
Earnings (loss)
attributable to common stockholders
|
$
|
112
|
|
$
|
(385)
|
|
n/m
|
|
$
|
(63)
|
|
$
|
(1,749)
|
|
n/m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss)
per common share
|
$
|
0.01
|
|
$
|
(0.02)
|
|
n/m
|
|
$
|
0.00
|
|
$
|
(0.11)
|
|
n/m
|
Diluted earnings
(loss) per common share
|
$
|
0.01
|
|
$
|
(0.02)
|
|
n/m
|
|
$
|
0.00
|
|
$
|
(0.11)
|
|
n/m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average common shares
outstanding - basic
|
|
15,823,710
|
|
|
15,823,644
|
|
|
|
|
15,823,710
|
|
|
15,823,595
|
|
|
Average common shares
outstanding - diluted
|
|
15,831,154
|
|
|
15,823,644
|
|
|
|
|
15,823,710
|
|
|
15,823,595
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
n/m - not
meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Statements of Financial Condition
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At or for the
three months ended
|
($ in
thousands)
|
September
30,
|
|
June
30,
|
|
March
31,
|
|
December
31,
|
|
September
30,
|
(unaudited)
|
2014
|
|
2014
|
|
2014
|
|
2013
|
|
2013
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
30,184
|
|
$
|
18,881
|
|
$
|
21,578
|
|
$
|
19,160
|
|
$
|
46,785
|
Interest-bearing
deposits in other financial institutions
|
|
742
|
|
|
1,486
|
|
|
1,486
|
|
|
1,982
|
|
|
1,982
|
Securities available
for sale
|
|
8,143
|
|
|
8,635
|
|
|
9,074
|
|
|
9,672
|
|
|
10,544
|
Loans held for
sale
|
|
5,861
|
|
|
3,259
|
|
|
4,090
|
|
|
3,285
|
|
|
4,856
|
Loans
|
|
254,424
|
|
|
253,546
|
|
|
214,665
|
|
|
212,870
|
|
|
176,496
|
Less allowance
for loan losses
|
|
(6,256)
|
|
|
(5,871)
|
|
|
(5,763)
|
|
|
(5,729)
|
|
|
(6,171)
|
Loans, net
|
|
248,168
|
|
|
247,675
|
|
|
208,902
|
|
|
207,141
|
|
|
170,325
|
FHLB stock
|
|
1,942
|
|
|
1,942
|
|
|
1,942
|
|
|
1,942
|
|
|
1,942
|
Foreclosed assets,
net
|
|
1,636
|
|
|
1,636
|
|
|
1,636
|
|
|
1,636
|
|
|
1,464
|
Premises and
equipment, net
|
|
3,823
|
|
|
3,839
|
|
|
3,753
|
|
|
3,547
|
|
|
3,451
|
Assets held for
sale
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
2,070
|
Other intangible
assets
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
20
|
Bank owned life
insurance
|
|
4,633
|
|
|
4,600
|
|
|
4,567
|
|
|
4,535
|
|
|
4,503
|
Accrued interest
receivable and other assets
|
|
2,498
|
|
|
2,504
|
|
|
1,961
|
|
|
2,848
|
|
|
2,450
|
Total
assets
|
$
|
307,630
|
|
$
|
294,457
|
|
$
|
258,989
|
|
$
|
255,748
|
|
$
|
250,392
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
bearing
|
$
|
33,012
|
|
$
|
30,215
|
|
$
|
30,772
|
|
$
|
27,652
|
|
$
|
24,795
|
Interest bearing
|
|
217,951
|
|
|
212,506
|
|
|
184,916
|
|
|
180,657
|
|
|
185,881
|
Total deposits
|
|
250,963
|
|
|
242,721
|
|
|
215,688
|
|
|
208,309
|
|
|
210,676
|
Short-term Federal
Home Loan Bank advances
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FHLB
advances
|
|
14,500
|
|
|
13,000
|
|
|
13,000
|
|
|
10,000
|
|
|
10,000
|
Other secured
borrowings
|
|
-
|
|
|
-
|
|
|
-
|
|
|
6,526
|
|
|
-
|
Advances by borrowers
for taxes and insurance
|
|
212
|
|
|
168
|
|
|
137
|
|
|
575
|
|
|
174
|
Accrued interest
payable and other liabilities
|
|
2,443
|
|
|
4,240
|
|
|
2,309
|
|
|
2,319
|
|
|
2,428
|
Subordinated
debentures
|
|
5,155
|
|
|
5,155
|
|
|
5,155
|
|
|
5,155
|
|
|
5,155
|
Total liabilities
|
|
273,273
|
|
|
265,284
|
|
|
236,289
|
|
|
232,884
|
|
|
228,433
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity
|
|
34,357
|
|
|
29,173
|
|
|
22,700
|
|
|
22,864
|
|
|
21,959
|
Total liabilities and
stockholders' equity
|
$
|
307,630
|
|
$
|
294,457
|
|
$
|
258,989
|
|
$
|
255,748
|
|
$
|
250,392
|
Consolidated
Financial Highlights
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At or for the
three months ended
|
|
At or for nine
months ended
|
($ in thousands
except per share data)
|
|
Sept
30,
|
|
Jun
30,
|
|
Mar
31,
|
|
Dec
31,
|
|
Sept
30,
|
|
|
September
30,
|
(unaudited)
|
|
2014
|
|
2014
|
|
2014
|
|
2013
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
(loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$
|
2,437
|
|
$
|
2,043
|
|
$
|
1,761
|
|
$
|
1,514
|
|
$
|
1,393
|
|
$
|
6,241
|
|
$
|
3,873
|
Provision for loan
losses
|
|
$
|
75
|
|
$
|
108
|
|
$
|
20
|
|
$
|
(230)
|
|
$
|
76
|
|
$
|
203
|
|
$
|
726
|
Noninterest
income
|
|
$
|
446
|
|
$
|
358
|
|
$
|
245
|
|
$
|
1,315
|
|
$
|
176
|
|
$
|
1,049
|
|
$
|
578
|
Noninterest
expense
|
|
$
|
2,522
|
|
$
|
2,195
|
|
$
|
2,200
|
|
$
|
2,228
|
|
$
|
1,878
|
|
$
|
6,917
|
|
$
|
5,474
|
Net Income
(loss)
|
|
$
|
286
|
|
$
|
98
|
|
$
|
(214)
|
|
$
|
831
|
|
$
|
(385)
|
|
$
|
170
|
|
$
|
(1,749)
|
Preferred dividends
on Series B stock
|
|
$
|
(174)
|
|
$
|
(59)
|
|
|
n/a
|
|
|
n/a
|
|
|
n/a
|
|
$
|
(233)
|
|
|
n/a
|
Earnings (loss)
available to common stockholders
|
|
$
|
112
|
|
$
|
39
|
|
$
|
(214)
|
|
$
|
831
|
|
$
|
(385)
|
|
$
|
(63)
|
|
$
|
(1,749)
|
Basic earnings (loss)
per common share
|
|
$
|
0.01
|
|
$
|
0.00
|
|
$
|
(0.01)
|
|
$
|
0.05
|
|
$
|
(0.02)
|
|
$
|
0.00
|
|
$
|
(0.11)
|
Diluted earnings
(loss) per common share
|
|
$
|
0.01
|
|
$
|
0.00
|
|
$
|
(0.01)
|
|
$
|
0.05
|
|
$
|
(0.02)
|
|
$
|
0.00
|
|
$
|
(0.11)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance Ratios
(annualized)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets
|
|
|
0.38%
|
|
|
0.14%
|
|
|
(0.34%)
|
|
|
1.34%
|
|
|
(0.63%)
|
|
|
0.08%
|
|
|
(1.00%)
|
Return on average
equity
|
|
|
3.51%
|
|
|
1.57%
|
|
|
(3.76%)
|
|
|
14.70%
|
|
|
(6.95%)
|
|
|
0.85%
|
|
|
(10.26%)
|
Average yield on
interest-earning assets
|
|
|
4.18%
|
|
|
3.92%
|
|
|
3.78%
|
|
|
3.60%
|
|
|
3.50%
|
|
|
3.97%
|
|
|
3.48%
|
Average rate paid on
interest-bearing liabilities
|
|
|
0.83%
|
|
|
0.82%
|
|
|
0.91%
|
|
|
1.04%
|
|
|
1.09%
|
|
|
0.85%
|
|
|
1.15%
|
Average interest rate
spread
|
|
|
3.35%
|
|
|
3.10%
|
|
|
2.87%
|
|
|
2.56%
|
|
|
2.41%
|
|
|
3.12%
|
|
|
2.33%
|
Net interest margin,
fully taxable equivalent
|
|
|
3.49%
|
|
|
3.24%
|
|
|
3.02%
|
|
|
2.69%
|
|
|
2.53%
|
|
|
3.26%
|
|
|
2.46%
|
Efficiency
ratio
|
|
|
87.48%
|
|
|
91.42%
|
|
|
109.67%
|
|
|
78.05%
|
|
|
118.99%
|
|
|
94.88%
|
|
|
122.31%
|
Noninterest expense
to average assets
|
|
|
3.34%
|
|
|
3.21%
|
|
|
3.45%
|
|
|
3.59%
|
|
|
3.06%
|
|
|
3.33%
|
|
|
3.14%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core capital ratio
(1)
|
|
|
11.14%
|
|
|
10.45%
|
|
|
9.64%
|
|
|
9.34%
|
|
|
8.88%
|
|
|
11.14%
|
|
|
8.88%
|
Total risk-based
capital ratio (1)
|
|
|
14.33%
|
|
|
13.01%
|
|
|
12.43%
|
|
|
12.08%
|
|
|
13.28%
|
|
|
14.33%
|
|
|
13.28%
|
Tier 1 risk-based
capital ratio (1)
|
|
|
13.07%
|
|
|
11.75%
|
|
|
11.17%
|
|
|
10.81%
|
|
|
12.00%
|
|
|
13.07%
|
|
|
12.00%
|
Tangible capital
ratio (1)
|
|
|
11.14%
|
|
|
10.45%
|
|
|
9.64%
|
|
|
9.34%
|
|
|
8.88%
|
|
|
11.14%
|
|
|
8.88%
|
Equity to total
assets at end of period
|
|
|
11.17%
|
|
|
9.91%
|
|
|
8.76%
|
|
|
8.94%
|
|
|
8.77%
|
|
|
11.17%
|
|
|
8.77%
|
Tangible equity to
tangible assets
|
|
|
11.17%
|
|
|
9.91%
|
|
|
8.76%
|
|
|
8.94%
|
|
|
8.76%
|
|
|
11.17%
|
|
|
8.76%
|
Book value per common
share
|
|
$
|
1.41
|
|
$
|
1.42
|
|
$
|
1.43
|
|
$
|
1.44
|
|
$
|
1.39
|
|
$
|
1.41
|
|
$
|
1.39
|
Tangible book value
per common share
|
|
$
|
1.41
|
|
$
|
1.42
|
|
$
|
1.43
|
|
$
|
1.44
|
|
$
|
1.39
|
|
$
|
1.41
|
|
$
|
1.39
|
Period-end market
value per common share
|
|
$
|
1.33
|
|
$
|
1.48
|
|
$
|
1.55
|
|
$
|
1.33
|
|
$
|
1.41
|
|
$
|
1.33
|
|
$
|
1.41
|
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
|
|
|
15,823,710
|
|
|
15,823,644
|
|
|
15,823,710
|
|
|
15,823,595
|
Average diluted
common shares outstanding
|
|
|
15,831,154
|
|
|
15,863,968
|
|
|
15,823,710
|
|
|
15,823,710
|
|
|
15,823,644
|
|
|
15,823,710
|
|
|
15,823,595
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset
Quality
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming
loans
|
|
$
|
3,733
|
|
$
|
4,400
|
|
$
|
5,564
|
|
$
|
5,738
|
|
$
|
5,391
|
|
$
|
3,733
|
|
$
|
5,391
|
Nonperforming loans
to total loans
|
|
|
1.47%
|
|
|
1.74%
|
|
|
2.59%
|
|
|
2.70%
|
|
|
3.05%
|
|
|
1.47%
|
|
|
3.05%
|
Nonperforming assets
to total assets
|
|
|
1.75%
|
|
|
2.05%
|
|
|
2.78%
|
|
|
2.88%
|
|
|
2.74%
|
|
|
1.75%
|
|
|
2.74%
|
Allowance for loan
losses to total loans
|
|
|
2.46%
|
|
|
2.32%
|
|
|
2.68%
|
|
|
2.69%
|
|
|
3.50%
|
|
|
2.46%
|
|
|
3.50%
|
Allowance for loan
losses to nonperforming loans
|
|
|
167.59%
|
|
|
133.43%
|
|
|
103.57%
|
|
|
99.85%
|
|
|
114.47%
|
|
|
167.59%
|
|
|
114.47%
|
Net charge-offs
(recoveries)
|
|
$
|
(310)
|
|
$
|
-
|
|
$
|
(14)
|
|
$
|
212
|
|
$
|
(30)
|
|
$
|
(324)
|
|
$
|
(208)
|
Annualized net
charge-offs (recoveries) to average loans
|
|
|
(0.47%)
|
|
|
0.00%
|
|
|
(0.03%)
|
|
|
0.47%
|
|
|
(0.07%)
|
|
|
(0.14%)
|
|
|
(0.38%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
Balances
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
$
|
254,699
|
|
$
|
227,921
|
|
$
|
209,895
|
|
$
|
173,064
|
|
$
|
167,149
|
|
$
|
230,838
|
|
$
|
156,492
|
Assets
|
|
$
|
302,367
|
|
$
|
273,941
|
|
$
|
255,107
|
|
$
|
248,545
|
|
$
|
245,279
|
|
$
|
277,138
|
|
$
|
232,341
|
Stockholders'
equity
|
|
$
|
32,620
|
|
$
|
24,951
|
|
$
|
22,787
|
|
$
|
22,611
|
|
$
|
22,153
|
|
$
|
26,786
|
|
$
|
22,723
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Regulatory capital ratios of CFBank
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE Central Federal Corporation