WORTHINGTON, Ohio, Nov. 9, 2016 /PRNewswire/ -- Central Federal
Corporation (NASDAQ: CFBK) (the "Company") announced that net
income for the three months ended September
30, 2016 totaled $505,000 and
increased $175,000, or 53.0%,
compared to net income of $330,000
for the three months ended September
30, 2015. The increase in net income was due to a
$482,000 increase in net interest
income, a $30,000 decrease in
provision expense and a $26,000
increase in noninterest income, partially offset by a $249,000 increase in income tax expense and a
$114,000 increase in noninterest
expense.
The Company reversed its deferred tax valuation allowance during
the fourth quarter of 2015, and thus has recorded income tax
expense in 2016. On a comparable basis, income before income
tax expense was $754,000 for the
three months ended September 30, 2016
and increased $424,000, or 128.5%,
compared to $330,000 for the three
months ended September 30, 2015.
Net income attributable to common stockholders for the three
months ended September 30, 2016,
totaled $291,000, or $0.02 per diluted common share, and increased
$175,000, or 150.9%, compared to net
income attributable to common stockholders of $116,000, or $0.01
per diluted common share, for the three months ended September 30, 2015. For the three months
ended September 30, 2016 and 2015,
preferred dividends on the Company's Series B Preferred Stock and
accretion of discount reduced net income attributable to common
stockholders by $214,000 for each
period.
Net income for the nine months ended September 30, 2016 totaled $1.2 million and increased $195,000, or 18.6%, compared to net income of
$1.0 million for the nine months
ended September 30, 2015. The
increase in net income was due to a $1.1
million increase in net interest income, partially offset by
a $603,000 increase in income tax
expense, a $199,000 decrease in
noninterest income, a $64,000
increase in noninterest expense and a $30,000 increase in provision expense.
As indicated above, the Company reversed its deferred tax
valuation allowance during the fourth quarter of 2015, and thus has
recorded income tax expense in 2016. On a comparable basis,
income before income tax expense was $1.8
million for the nine months ended September 30, 2016 and increased $798,000, or 76.1%, compared to $1.0 million for the nine months ended
September 30, 2015.
Net income attributable to common stockholders for the nine
months ended September 30, 2016,
totaled $600,000, or $0.04 per diluted common share, and increased
$195,000, or 48.1%, compared to net
income attributable to common stockholders of $405,000, or $0.03
per diluted common share, for the nine months ended September 30, 2015. For the nine months
ended September 30, 2016 and 2015,
preferred dividends on the Company's Series B Preferred Stock and
accretion of discount reduced net income attributable to common
stockholders by $643,000 for each
period.
Timothy T. O'Dell, President and
CEO, commented, "Overall we are pleased with our business and
earnings growth and trajectory. CFBank has successfully
recruited three seasoned commercial lenders experienced in
commercial and industrial lending relationships and working with
closely held businesses. We believe the recent addition of
these seasoned lenders will be instrumental in helping us to
continue to grow as well as to diversify our Commercial Banking
business.
Also, since the beginning of the year our CFBank Team was able
to grow deposits by $55.4 million, or
19.1%, providing the funding needed for continuing to grow loans
and earning assets. In addition, we also have made
investments in further strengthening our infrastructure including
information technology and operations support, along with credit
and risk management."
Overview of Results
Net interest income. Net interest income
totaled $2.9 million for the quarter
ended September 30, 2016 and
increased $482,000, or 19.6%,
compared to $2.5 million for the
quarter ended September 30,
2015. The increase in net interest income was primarily due
to a $595,000, or 19.0%, increase in
interest income, partially offset by a $113,000, or 16.5%, increase in interest
expense. The increase in interest income was primarily
attributed to a $44.5 million, or
14.4%, increase in average interest-earning assets outstanding and
a 16bps increase in average yield on interest-earning assets.
The increase in interest expense was primarily attributed to a
$31.1 million, or 11.7%, increase in
average interest-bearing liabilities outstanding and a 5bps
increase in the average cost of funds on interest-bearing
liabilities. As a result, net interest margin of 3.32% for
the quarter ended September 30, 2016
increased 15bps compared to the net interest margin of 3.17% for
the quarter ended September 30,
2015.
Net interest income totaled $8.4
million for the nine months ended September 30, 2016 and increased $1.1 million, or 14.9%, compared to $7.3 million for the nine months ended
September 30, 2015. The
increase in net interest income was primarily due to a $1.4 million, or 15.0%, increase in interest
income, partially offset by a $301,000, or 15.6%, increase in interest
expense. The increase in interest income was primarily
attributed to a $34.5 million, or
11.4%, increase in average interest-earning assets outstanding and
a 13bps increase in average yield on interest-earning assets.
The increase in interest expense was primarily attributed to a
$22.9 million, or 8.9%, increase in
average interest-bearing liabilities outstanding and a 7bps
increase in the average cost of funds on interest-bearing
liabilities. As a result, net interest margin of 3.34% for
the nine months ended September 30,
2016 increased 10bps compared to the net interest margin of
3.24% for the nine months ended September
30, 2015.
Robert E. Hoeweler, Chairman of
the Board, added "Our Team continues to execute well our
fundamental tenets of quality growth, coupled with strong credit
quality and risk management. We remain enthused about our
growth and expansion opportunities. We believe the recent
sales of market competitors has done nothing but enhance our
business prospects going forward."
Provision for loan losses. The provision for
loan losses totaled $20,000 for the
quarter ended September 30, 2016 and
decreased $30,000, or 60.0%, compared
to $50,000 for the quarter ended
September 30, 2015. The
decrease in the provision for loan losses for the quarter ended
September 30, 2016 was primarily due
to a continued decrease in the majority of historical loss rates,
favorable trends in certain qualitative factors and net recoveries
for the quarter. Net recoveries for the quarter ended
September 30, 2016 totaled
$260,000 compared to net charge-offs
of $8,000 for the quarter ended
September 30, 2015. The ratio
of the ALLL to nonperforming loans improved to 794.1% as of
September 30, 2016.
The provision for loan losses totaled $230,000 for the nine months ended September 30, 2016 and increased $30,000, or 15.0%, compared to $200,000 for the nine months ended September 30, 2015. The increase in the
provision for loan losses for the nine months ended September 30, 2016 was primarily due to increased
loan growth, which was partially offset by a continual decrease in
the majority of historical loss rates and favorable trends in
certain qualitative factors and net recoveries. Net
recoveries for the nine months ended September 30, 2016 totaled $43,000 compared to net recoveries of
$6,000 for the nine months ended
September 30, 2015. The ratio
of the ALLL to nonperforming loans improved to 794.1% as of
September 30, 2016.
Noninterest income. Noninterest income
for the quarter ended September 30,
2016 totaled $350,000 and
increased $26,000, or 8.0%, compared
to $324,000 for the quarter ended
September 30, 2015. The increase was
primarily due to a $114,000 increase
in service charges on deposit accounts, partially offset by a
$70,000 decrease in other noninterest
income and a $18,000 decrease in net
gains on sales of loans. The increase in service charges on
deposit accounts was related to increased pricing, increased
deposit growth and activity and new account relationships. The
decrease in other noninterest income was related to decreased
activity related to the Company's joint ventures. The decrease in
net gain on sales of loans was primarily due to lower sales
activity.
Noninterest income for the nine months ended September 30, 2016 totaled $944,000 and decreased $199,000, or 17.4%, compared to $1.1 million for the nine months ended
September 30, 2015. The decrease was
primarily due to a $260,000 decrease
in net gains on sales of loans and a $205,000 decrease in other noninterest income,
partially offset by a $253,000
increase in service charges on deposit accounts. The decrease
in the net gains on sales of loans was primarily due to a SBA loan
sale during the second quarter of 2015 and lower residential
mortgage sales activity. The decrease in other noninterest
income was related to decreased activity related to the Company's
joint ventures. The increase in service charges on deposit
accounts was related to increased pricing, deposit growth and
activity and new account relationships.
Noninterest expense. Noninterest
expense increased $114,000, or 4.8%,
and totaled $2.5 million for the
quarter ended September 30, 2016,
compared to $2.4 million for the
quarter ended September 30,
2015. The increase in noninterest expense during the three
months ended September 30, 2016 was
primarily due to a $116,000 increase
in salaries and employee benefits expense and a $90,000 increase in professional fees, which was
partially offset by a $72,000
decrease in FDIC premiums. The increase in salaries and employee
benefits was due to an increase in personnel in commercial lending
and operations to support revenue growth, infrastructure and risk
management practices. The increase in professional fees was
primarily due to increases in information technology consulting
projects and legal expenses primarily related to our loan workout
area, as we were able to successfully exit certain problem
credits. The decrease in FDIC premiums was due to lower
assessment factors charged based on CFBank's improved
performance.
Noninterest expense increased $64,000, or 0.9%, and totaled $7.3 million for the nine months ended
September 30, 2016, compared to
$7.2 million for the nine months
ended September 30, 2015. The
increase in noninterest expense during the nine months ended
September 30, 2016 was primarily due
to a $268,000 increase in
professional fees, partially offset by a $145,000 decrease in FDIC premiums and a
$69,000 decrease in regulatory
assessment expense. The increase in professional fees was due
to increases in recruiting fees, legal expense related to loan
workouts, and information technology consulting projects. The
decrease in FDIC premiums and regulatory assessment expense was due
to lower assessment factors charged based on CFBank's improved
performance.
Income tax expense. Income tax expense was
$249,000 for the three months ended
September 30, 2016, an increase of
$249,000 compared to $0 for the three months ended September 30, 2015. As of September 30, 2015, the Company maintained a
valuation allowance against the net deferred tax asset which
reduced the deferred tax asset to zero; thus, no income tax expense
was recorded for the quarter ended September
30, 2015. With the reversal of the deferred tax
valuation allowance as of December 31,
2015, the Company is now recording income tax expense based
on the federal statutory rate adjusted for the effect of bank owned
life insurance and other miscellaneous items. The effective
tax rate for the quarter ended September 30,
2016, was approximately 33.0% which management believes is a
reasonable estimate for the effective tax rate.
Income tax expense was $603,000
for the nine months ended September 30,
2016, an increase of $603,000
compared to $0 for the nine months
ended September 30, 2015. As of
September 30, 2015, the Company
maintained a valuation allowance against the net deferred tax asset
which reduced the deferred tax asset to zero; thus, no income tax
expense was recorded for the nine months ended September 30, 2015. With the reversal of
the deferred tax valuation allowance as of December 31, 2015, the Company is now recording
income tax expense based on the federal statutory rate adjusted for
the effect of bank owned life insurance and other miscellaneous
items. The effective tax rate for the nine months ended
September 30, 2016, was approximately
32.7% which management believes is a reasonable estimate for the
effective tax rate.
Balance Sheet Activity
General. Assets totaled $408.4 million at September 30, 2016 and increased $57.1 million, or 16.3%, from $351.3 million at December
31, 2015. The increase was primarily due to a
$32.3 million increase in net loan
balances and a $26.4 million increase
in cash and cash equivalents.
Cash and cash equivalents. Cash and
cash equivalents totaled $52.3
million at September 30, 2016
and increased $26.4 million, or
102.0%, from $25.9 million at
December 31, 2015. The increase
in cash and cash equivalents was a result of management's efforts
to increase deposit activity in order to fund anticipated loan
growth and to improve the loan to deposit ratio.
Securities. Securities available for sale
totaled $9.2 million at September 30, 2016 and decreased $142,000, or 1.5%, from $9.4 million at December
31, 2015.
Loans and Leases. Net loans totaled
$329.4 million at September 30, 2016 and increased $32.3 million, or 10.9%, from $297.1 million at December
31, 2015. The increase was primarily due to a
$26.4 million increase in commercial
loan balances, a $6.0 million
increase in single-family residential loans balances, a
$4.2 million increase in commercial
real estate loan balances, and a $3.5
million increase in multi-family loan balances, partially
offset by a $3.4 million decrease in
construction loan balances, and a $4.1
million decrease in total consumer loan balances. The
increase in commercial loan balances, single-family residential,
commercial real estate and multi-family loans was due to increased
sales activity. The decrease in construction loan balances
was primarily attributed to the completion of projects.
Allowance for loan and lease losses (ALLL).
The ALLL totaled $6.9 million at
September 30, 2016 and increased
$273,000, or 4.1%, from $6.6 million at December
31, 2015. The increase in the ALLL was primarily due
to an increase in overall loans balances and net recoveries for the
quarter, which was partially offset by continued improvement in
credit quality as certain historical loss rates continued to
decline and total criticized assets decreased. The ratio of
the ALLL to total loans was 2.05% at September 30, 2016 compared to 2.18% at
December 31, 2015. In addition,
the ratio of the ALLL to nonperforming loans was 794.1% at
September 30, 2016, compared to
464.6% at December 31, 2015.
Foreclosed assets. Foreclosed assets
totaled $0 at September 30, 2016 compared to $1.6 million at December
31, 2015. Foreclosed assets at December 31, 2015 consisted of one multi-family
property that was transferred into REO at fair value at the time of
transfer in 2013. This property was sold during the second
quarter of 2016.
Deposits. Deposits totaled
$345.9 million at September 30, 2016 and increased $55.4 million, or 19.1%, from $290.5 million at December
31, 2015. The increase was primarily attributed to a
$30.3 million increase in
certificates of deposits, a $13.1
million increase in money market account balances, and a
$9.8 million increase in checking
account balances. The majority of the deposit increase was a
result of management's focused sales and marketing efforts to grow
deposits to fund anticipated loan growth and improve the loan to
deposit ratio.
Stockholders' equity. Stockholders'
equity totaled $39.1 million at
September 30, 2016, an increase of
$809,000, or 2.1%, from $38.3 million at December
31, 2015. The increase in total stockholders' equity
was primarily attributed to net income, which was partially offset
by the dividends paid on the Company's Series B Preferred Stock
during the nine months ended September
30, 2016.
In May 2016, the Company announced
that its Board of Directors adopted a stock repurchase program
pursuant to which the Company may repurchase up to 3% of the
Company's common stock over the subsequent six-month period.
The Board of Directors subsequently approved the continuation of
this repurchase program for an additional six-month period
commencing November 10, 2016.
Any purchases under the repurchase program will be made from time
to time in the open market in accordance with applicable federal
and state securities laws and regulations. The timing and
amount of any stock repurchases will be determined by the Company's
management based on its evaluation of market conditions, regulatory
requirements and other corporate considerations. Since the
commencement of the program, the Company has repurchased 21,300
common shares for an aggregate purchase price of $30,000 as of September
30, 2016. All repurchased shares are held by the
Company as treasury stock.
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 earnings release 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:
- changes in economic and political conditions could adversely
affect our earnings through declines in deposits, loan demand, the
ability of our customers to repay loans and the value of the
collateral securing our loans;
- 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 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 requirements and
guidelines to which we are subject;
- our ability to generate profits in the future;
- our ability to raise additional capital if and when necessary
in the future;
- 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;
- further increases in competition from other local and regional
commercial banks, savings banks, credit unions and other non-bank
financial institutions;
- our ability to grow our core businesses;
- our ability to effectively manage our growth;
- any failure, interruption or breach in security of our
communications and information systems;
- 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,
|
|
|
|
2016
|
|
2015
|
|
%
change
|
|
2016
|
|
2015
|
|
%
change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest
income
|
$
|
3,734
|
|
$
|
3,139
|
|
19%
|
|
$
|
10,662
|
|
$
|
9,270
|
|
15%
|
Total interest
expense
|
|
798
|
|
|
685
|
|
16%
|
|
|
2,225
|
|
|
1,924
|
|
16%
|
Net interest
income
|
|
2,936
|
|
|
2,454
|
|
20%
|
|
|
8,437
|
|
|
7,346
|
|
15%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for loan
and lease losses
|
|
20
|
|
|
50
|
|
-60%
|
|
|
230
|
|
|
200
|
|
15%
|
Net interest income
after provision for loan and lease
losses
|
|
2,916
|
|
|
2,404
|
|
21%
|
|
|
8,207
|
|
|
7,146
|
|
15%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service
charges on deposit accounts
|
|
241
|
|
|
127
|
|
90%
|
|
|
612
|
|
|
359
|
|
70%
|
Net gain
on sales of loans
|
|
46
|
|
|
64
|
|
-28%
|
|
|
97
|
|
|
357
|
|
-73%
|
Net loss
on sale of securities
|
|
-
|
|
|
-
|
|
n/m
|
|
|
-
|
|
|
(12)
|
|
n/m
|
Other
|
|
63
|
|
|
133
|
|
-53%
|
|
|
235
|
|
|
439
|
|
-46%
|
Noninterest
income
|
|
350
|
|
|
324
|
|
8%
|
|
|
944
|
|
|
1,143
|
|
-17%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries
and employee benefits
|
|
1,283
|
|
|
1,167
|
|
10%
|
|
|
3,610
|
|
|
3,604
|
|
0%
|
Occupancy and equipment
|
|
149
|
|
|
129
|
|
16%
|
|
|
432
|
|
|
402
|
|
7%
|
Data
processing
|
|
285
|
|
|
269
|
|
6%
|
|
|
827
|
|
|
786
|
|
5%
|
Franchise and other taxes
|
|
89
|
|
|
79
|
|
13%
|
|
|
265
|
|
|
240
|
|
10%
|
Professional fees
|
|
320
|
|
|
230
|
|
39%
|
|
|
944
|
|
|
676
|
|
40%
|
Director
fees
|
|
61
|
|
|
33
|
|
85%
|
|
|
166
|
|
|
99
|
|
68%
|
Postage,
printing and supplies
|
|
35
|
|
|
41
|
|
-15%
|
|
|
130
|
|
|
171
|
|
-24%
|
Advertising and promotion
|
|
51
|
|
|
35
|
|
46%
|
|
|
86
|
|
|
125
|
|
-31%
|
Telephone
|
|
32
|
|
|
30
|
|
7%
|
|
|
90
|
|
|
86
|
|
5%
|
Loan
expenses
|
|
51
|
|
|
110
|
|
-54%
|
|
|
94
|
|
|
153
|
|
-39%
|
Foreclosed assets, net
|
|
-
|
|
|
18
|
|
-100%
|
|
|
49
|
|
|
92
|
|
-47%
|
Depreciation
|
|
52
|
|
|
53
|
|
-2%
|
|
|
159
|
|
|
157
|
|
1%
|
FDIC
premiums
|
|
34
|
|
|
106
|
|
-68%
|
|
|
168
|
|
|
313
|
|
-46%
|
Regulatory assessment
|
|
3
|
|
|
30
|
|
-90%
|
|
|
59
|
|
|
128
|
|
-54%
|
Other
insurance
|
|
26
|
|
|
30
|
|
-13%
|
|
|
84
|
|
|
91
|
|
-8%
|
Other
|
|
41
|
|
|
38
|
|
8%
|
|
|
142
|
|
|
118
|
|
20%
|
Noninterest
expense
|
|
2,512
|
|
|
2,398
|
|
5%
|
|
|
7,305
|
|
|
7,241
|
|
1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
754
|
|
|
330
|
|
128%
|
|
|
1,846
|
|
|
1,048
|
|
76%
|
Income tax
expense
|
|
249
|
|
|
-
|
|
n/m
|
|
|
603
|
|
|
-
|
|
n/m
|
Net Income
|
$
|
505
|
|
$
|
330
|
|
53%
|
|
$
|
1,243
|
|
$
|
1,048
|
|
19%
|
Dividends on Series B
preferred stock and accretion of discount
|
|
(214)
|
|
|
(214)
|
|
0%
|
|
|
(643)
|
|
|
(643)
|
|
0%
|
Earnings attributable
to common stockholders
|
$
|
291
|
|
$
|
116
|
|
151%
|
|
$
|
600
|
|
$
|
405
|
|
48%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss)
per common share
|
$
|
0.02
|
|
$
|
0.01
|
|
|
|
$
|
0.04
|
|
$
|
0.03
|
|
|
Diluted earnings
(loss) per common share
|
$
|
0.02
|
|
$
|
0.01
|
|
|
|
$
|
0.04
|
|
$
|
0.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average common shares
outstanding - basic
|
|
16,003,363
|
|
|
15,823,710
|
|
|
|
|
16,015,147
|
|
|
15,823,710
|
|
|
Average common shares
outstanding - diluted
|
|
16,021,023
|
|
|
15,832,106
|
|
|
|
|
16,028,338
|
|
|
15,833,151
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
n/m - not
meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Statements of Financial Condition
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At or for the
three months ended
|
|
($ in
thousands)
|
Sept
30,
|
|
Jun
30,
|
|
Mar
31,
|
|
Dec
31,
|
|
Sept
30,
|
|
(unaudited)
|
2016
|
|
2016
|
|
2016
|
|
2015
|
|
2015
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
52,302
|
|
$
|
13,007
|
|
$
|
24,779
|
|
$
|
25,895
|
|
$
|
20,101
|
|
Interest-bearing
deposits in other financial institutions
|
|
100
|
|
|
100
|
|
|
-
|
|
|
-
|
|
|
494
|
|
Securities available
for sale
|
|
9,226
|
|
|
9,329
|
|
|
9,372
|
|
|
9,368
|
|
|
11,573
|
|
Loans held for
sale
|
|
2,466
|
|
|
2,736
|
|
|
1,598
|
|
|
889
|
|
|
673
|
|
Loans and
leases
|
|
336,269
|
|
|
330,977
|
|
|
307,195
|
|
|
303,684
|
|
|
289,956
|
|
Less allowance
for loan and lease losses
|
|
(6,893)
|
|
|
(6,613)
|
|
|
(6,716)
|
|
|
(6,620)
|
|
|
(6,522)
|
|
Loans and leases,
net
|
|
329,376
|
|
|
324,364
|
|
|
300,479
|
|
|
297,064
|
|
|
283,434
|
|
FHLB stock
|
|
1,942
|
|
|
1,942
|
|
|
1,942
|
|
|
1,942
|
|
|
1,942
|
|
Foreclosed assets,
net
|
|
-
|
|
|
-
|
|
|
1,636
|
|
|
1,636
|
|
|
1,636
|
|
Premises and
equipment, net
|
|
3,494
|
|
|
3,530
|
|
|
3,561
|
|
|
3,609
|
|
|
3,657
|
|
Bank owned life
insurance
|
|
4,896
|
|
|
4,863
|
|
|
4,830
|
|
|
4,797
|
|
|
4,763
|
|
Accrued interest
receivable and other assets
|
|
4,592
|
|
|
4,882
|
|
|
5,154
|
|
|
6,093
|
|
|
3,169
|
|
Total
assets
|
$
|
408,394
|
|
$
|
364,753
|
|
$
|
353,351
|
|
$
|
351,293
|
|
$
|
331,442
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
bearing
|
$
|
53,515
|
|
$
|
37,182
|
|
$
|
37,266
|
|
$
|
42,926
|
|
$
|
29,664
|
|
Interest bearing
|
|
292,339
|
|
|
258,846
|
|
|
255,168
|
|
|
247,541
|
|
|
244,150
|
|
Total deposits
|
|
345,854
|
|
|
296,028
|
|
|
292,434
|
|
|
290,467
|
|
|
273,814
|
|
FHLB
advances
|
|
15,500
|
|
|
22,500
|
|
|
14,500
|
|
|
14,500
|
|
|
14,500
|
|
Advances by borrowers
for taxes and insurance
|
|
349
|
|
|
198
|
|
|
353
|
|
|
656
|
|
|
311
|
|
Accrued interest
payable and other liabilities
|
|
2,415
|
|
|
2,078
|
|
|
2,369
|
|
|
2,203
|
|
|
2,537
|
|
Subordinated
debentures
|
|
5,155
|
|
|
5,155
|
|
|
5,155
|
|
|
5,155
|
|
|
5,155
|
|
Total liabilities
|
|
369,273
|
|
|
325,959
|
|
|
314,811
|
|
|
312,981
|
|
|
296,317
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity
|
|
39,121
|
|
|
38,794
|
|
|
38,540
|
|
|
38,312
|
|
|
35,125
|
|
Total liabilities and
stockholders' equity
|
$
|
408,394
|
|
$
|
364,753
|
|
$
|
353,351
|
|
$
|
351,293
|
|
$
|
331,442
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Financial Highlights
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At or for the
three months ended
|
|
At or for the nine
months ended
|
($ in thousands
except per share data)
|
|
Sept
30,
|
|
Jun
30,
|
|
Mar
31,
|
|
Dec
31,
|
|
Sept
30,
|
|
|
September
30,
|
(unaudited)
|
|
2016
|
|
2016
|
|
2016
|
|
2015
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
(loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$
|
2,936
|
|
$
|
2,835
|
|
$
|
2,666
|
|
$
|
2,451
|
|
$
|
2,454
|
|
$
|
8,437
|
|
$
|
7,346
|
Provision for loan
and lease losses
|
|
$
|
20
|
|
$
|
160
|
|
$
|
50
|
|
$
|
50
|
|
$
|
50
|
|
$
|
230
|
|
$
|
200
|
Noninterest
income
|
|
$
|
350
|
|
$
|
290
|
|
$
|
304
|
|
$
|
205
|
|
$
|
324
|
|
$
|
944
|
|
$
|
1,143
|
Noninterest
expense
|
|
$
|
2,512
|
|
$
|
2,339
|
|
$
|
2,454
|
|
$
|
2,370
|
|
$
|
2,398
|
|
$
|
7,305
|
|
$
|
7,241
|
Net Income (loss)
(1)
|
|
$
|
505
|
|
$
|
422
|
|
$
|
316
|
|
$
|
3,429
|
|
$
|
330
|
|
$
|
1,243
|
|
$
|
1,048
|
Dividends on Series B
preferred stock and accretion of discount
|
|
$
|
(214)
|
|
$
|
(215)
|
|
$
|
(214)
|
|
$
|
(214)
|
|
$
|
(214)
|
|
$
|
(643)
|
|
$
|
(643)
|
Earnings (loss)
available to common stockholders
|
|
$
|
291
|
|
$
|
207
|
|
$
|
102
|
|
$
|
3,215
|
|
$
|
116
|
|
$
|
600
|
|
$
|
405
|
Basic earnings (loss)
per common share
|
|
$
|
0.02
|
|
$
|
0.01
|
|
$
|
0.01
|
|
$
|
0.20
|
|
$
|
0.01
|
|
$
|
0.04
|
|
$
|
0.03
|
Diluted earnings
(loss) per common share
|
|
$
|
0.02
|
|
$
|
0.01
|
|
$
|
0.01
|
|
$
|
0.15
|
|
$
|
0.01
|
|
$
|
0.04
|
|
$
|
0.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance Ratios
(annualized)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets
|
|
|
0.53%
|
|
|
0.47%
|
|
|
0.36%
|
|
|
4.06%
|
|
|
0.40%
|
|
|
0.46%
|
|
|
0.43%
|
Return on average
equity
|
|
|
5.19%
|
|
|
4.37%
|
|
|
3.29%
|
|
|
39.05%
|
|
|
3.77%
|
|
|
4.29%
|
|
|
4.02%
|
Average yield on
interest-earning assets
|
|
|
4.22%
|
|
|
4.29%
|
|
|
4.14%
|
|
|
4.00%
|
|
|
4.06%
|
|
|
4.22%
|
|
|
4.09%
|
Average rate paid on
interest-bearing liabilities
|
|
|
1.08%
|
|
|
1.06%
|
|
|
1.03%
|
|
|
1.03%
|
|
|
1.03%
|
|
|
1.06%
|
|
|
0.99%
|
Average interest rate
spread
|
|
|
3.14%
|
|
|
3.23%
|
|
|
3.11%
|
|
|
2.97%
|
|
|
3.03%
|
|
|
3.16%
|
|
|
3.10%
|
Net interest margin,
fully taxable equivalent
|
|
|
3.32%
|
|
|
3.41%
|
|
|
3.29%
|
|
|
3.13%
|
|
|
3.17%
|
|
|
3.34%
|
|
|
3.24%
|
Efficiency
ratio
|
|
|
76.45%
|
|
|
74.85%
|
|
|
82.63%
|
|
|
89.23%
|
|
|
86.32%
|
|
|
77.87%
|
|
|
85.18%
|
Noninterest expense
to average assets
|
|
|
2.64%
|
|
|
2.61%
|
|
|
2.80%
|
|
|
2.80%
|
|
|
2.87%
|
|
|
2.68%
|
|
|
2.96%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core capital ratio
(2)
|
|
|
10.28%
|
|
|
10.92%
|
|
|
10.89%
|
|
|
11.12%
|
|
|
10.82%
|
|
|
10.28%
|
|
|
10.82%
|
Total risk-based
capital ratio (2)
|
|
|
13.11%
|
|
|
13.23%
|
|
|
13.69%
|
|
|
13.67%
|
|
|
13.77%
|
|
|
13.11%
|
|
|
13.77%
|
Tier 1 risk-based
capital ratio (2)
|
|
|
11.85%
|
|
|
11.97%
|
|
|
12.43%
|
|
|
12.40%
|
|
|
12.50%
|
|
|
11.85%
|
|
|
12.50%
|
Common equity tier 1
capital to risk weighted assets (2)
|
|
|
11.85%
|
|
|
11.97%
|
|
|
12.43%
|
|
|
12.40%
|
|
|
12.50%
|
|
|
11.85%
|
|
|
12.50%
|
Equity to total
assets at end of period
|
|
|
9.58%
|
|
|
10.64%
|
|
|
10.91%
|
|
|
10.91%
|
|
|
10.60%
|
|
|
9.58%
|
|
|
10.60%
|
Book value per common
share
|
|
$
|
1.69
|
|
$
|
1.67
|
|
$
|
1.66
|
|
$
|
1.64
|
|
$
|
1.46
|
|
$
|
1.69
|
|
$
|
1.46
|
Tangible book value
per common share
|
|
$
|
1.69
|
|
$
|
1.67
|
|
$
|
1.66
|
|
$
|
1.64
|
|
$
|
1.46
|
|
$
|
1.69
|
|
$
|
1.46
|
Period-end market
value per common share
|
|
$
|
1.41
|
|
$
|
1.36
|
|
$
|
1.35
|
|
$
|
1.32
|
|
$
|
1.34
|
|
$
|
1.41
|
|
$
|
1.34
|
Period-end common
shares outstanding
|
|
|
16,002,910
|
|
|
16,003,710
|
|
|
16,024,210
|
|
|
16,024,210
|
|
|
15,823,710
|
|
|
16,002,910
|
|
|
15,823,710
|
Average basic common
shares outstanding
|
|
|
16,003,363
|
|
|
16,017,997
|
|
|
16,024,210
|
|
|
15,957,377
|
|
|
15,823,710
|
|
|
16,015,147
|
|
|
15,823,710
|
Average diluted
common shares outstanding
|
|
|
16,021,023
|
|
|
16,028,990
|
|
|
16,033,988
|
|
|
22,820,088
|
|
|
15,832,106
|
|
|
16,028,338
|
|
|
15,833,151
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset
Quality
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming
loans
|
|
$
|
868
|
|
$
|
1,397
|
|
$
|
1,442
|
|
$
|
1,425
|
|
$
|
1,492
|
|
$
|
868
|
|
$
|
1,492
|
Nonperforming loans
to total loans
|
|
|
0.26%
|
|
|
0.42%
|
|
|
0.47%
|
|
|
0.47%
|
|
|
0.51%
|
|
|
0.26%
|
|
|
0.51%
|
Nonperforming assets
to total assets
|
|
|
0.21%
|
|
|
0.38%
|
|
|
0.87%
|
|
|
0.87%
|
|
|
0.94%
|
|
|
0.21%
|
|
|
0.94%
|
Allowance for loan
and lease losses to total loans
|
|
|
2.05%
|
|
|
2.00%
|
|
|
2.19%
|
|
|
2.18%
|
|
|
2.25%
|
|
|
2.05%
|
|
|
2.25%
|
Allowance for loan
and lease losses to nonperforming loans
|
|
|
794.12%
|
|
|
473.37%
|
|
|
465.74%
|
|
|
464.56%
|
|
|
437.13%
|
|
|
794.12%
|
|
|
437.13%
|
Net charge-offs
(recoveries)
|
|
$
|
(260)
|
|
$
|
263
|
|
$
|
(46)
|
|
$
|
(48)
|
|
$
|
8
|
|
$
|
(43)
|
|
$
|
(6)
|
Annualized net
charge-offs (recoveries) to average loans
|
|
|
(0.32%)
|
|
|
0.34%
|
|
|
(0.06%)
|
|
|
(0.07%)
|
|
|
0.01%
|
|
|
(0.02%)
|
|
|
(0.00%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
Balances
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
$
|
327,346
|
|
$
|
313,438
|
|
$
|
298,158
|
|
$
|
280,169
|
|
$
|
280,710
|
|
$
|
312,981
|
|
$
|
273,382
|
Assets
|
|
$
|
380,319
|
|
$
|
358,290
|
|
$
|
349,991
|
|
$
|
338,095
|
|
$
|
334,067
|
|
$
|
362,867
|
|
$
|
326,214
|
Stockholders'
equity
|
|
$
|
38,949
|
|
$
|
38,632
|
|
$
|
38,422
|
|
$
|
35,127
|
|
$
|
35,018
|
|
$
|
38,668
|
|
$
|
34,795
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Net Income for the quarter ended December 31, 2015, includes a $3.2
million credit to income tax expense as a result of the reversal of
a deferred tax valuation allowance that occurred in the fourth
quarter of 2015.
|
(2)
Regulatory capital ratios of CFBank
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/central-federal-corporation-announces-3rd-quarter-2016-results-300359876.html
SOURCE Central Federal Corporation