CF Bankshares Inc. Q2 2026 Filing Summary
Business Context and Reporting Period
This Form 10-Q covers the quarterly period ended June 30, 2026, for CF Bankshares Inc. (CFBK), a Delaware corporation and bank holding company. The company operates primarily through its wholly-owned subsidiary, CFBank, National Association, providing commercial, retail, and mortgage lending services in Ohio and Indiana. The company is classified as an accelerated filer and a smaller reporting company.
Key Financial Metrics
| Metric | Q2 2026 (3 Months) | YTD 2026 (6 Months) | Balance Sheet (June 30, 2026) |
|---|---|---|---|
| Net Income | $5.91 million | $10.94 million | — |
| Diluted EPS | $0.90 | $1.67 | — |
| Net Interest Income | $14.84 million | $28.16 million | — |
| Net Interest Margin | 2.93% | 2.81% | — |
| Provision for Credit Losses | $0.94 million | $1.55 million | — |
| Total Assets | — | — | $2.17 billion |
| Total Loans (Net) | — | — | $1.80 billion |
| Total Deposits | — | — | $1.83 billion |
| Stockholders' Equity | — | — | $194.34 million |
| Cash & Equivalents | — | — | $253.10 million |
Material Changes vs. Prior Period
- Profitability: Net income increased 17.4% year-over-year for the quarter ($5.91M vs. $5.04M) and 15.5% for the six-month period ($10.94M vs. $9.47M). This was driven by higher net interest income and lower provision for credit losses.
- Net Interest Income (NII): NII rose 6.0% in Q2 and 4.7% YTD compared to 2025. The increase was primarily due to a decrease in interest expense (lower cost of funds) which outpaced a slight decline in interest income yields.
- Asset Growth: Total assets increased 2.5% from December 31, 2025, to $2.17 billion. Net loans and leases grew by $59.7 million (3.4%), driven by increases in commercial real estate and construction loans, partially offset by a decline in single-family residential loans.
- Credit Quality: Nonperforming loans increased to $20.8 million (1.15% of total loans) from $15.3 million at year-end 2025. This increase included a $5.0 million non-core syndicated commercial loan. Criticized and classified loans increased significantly by 123.1% over the six months ended June 30, 2026.
- Provision Expense: The provision for credit losses decreased to $0.94 million in Q2 from $1.37 million in Q2 2025, reflecting net recoveries of $106,000 in the quarter.
Outlook, Risks, and Management Commentary
- Capital Position: CFBank remains "well capitalized" under Basel III standards. The Common Equity Tier 1 capital ratio was 13.55% and the Leverage Ratio was 11.64% as of June 30, 2026.
- Liquidity: The company maintains strong liquidity with $253.1 million in cash and equivalents. Additional borrowing capacity includes $177.8 million at the FHLB, $143.9 million at the FRB, and $65.0 million in unused commercial bank lines.
- Dividends: The Board declared a quarterly cash dividend of $0.09 per share on common stock and $9.00 per share on Series D Preferred Stock, paid on July 21, 2026.
- Risks: Management highlighted that financial results depend heavily on economic conditions in Ohio. Key risks include potential deterioration in credit quality, specifically regarding interest-only commercial lines of credit and real estate collateral values. The increase in criticized assets requires close monitoring.
- Tax Credits: The effective tax rate for the six months ended June 30, 2026, was 16.9%, lower than the statutory rate, primarily due to the impact of Low Income Housing and Historic Tax Credit investments.
Investor Verification Checklist
- Credit Quality Deterioration: Verify the specific details of the three relationships downgraded to "Special Mention" or "Substandard" that drove the 123% increase in criticized assets.
- Non-Core Loan Exposure: Review the terms and collateral coverage of the $5.0 million non-core syndicated commercial loan added to nonaccrual status.
- Interest Rate Sensitivity: Assess the impact of the floating rate conversion on the Holding Company's credit facility (converting to PRIME) and subordinated debt (SOFR + spread) on future interest expense.
- Loan Portfolio Composition: Confirm the concentration of interest-only loans, which totaled $145.4 million (38.3% of the commercial portfolio) and $37.8 million (98.7% of HELOCs).
- Regulatory Capital: Monitor the "well capitalized" status to ensure continued ability to pay dividends and accept brokered deposits without regulatory restriction.