CF Bankshares Inc. Q1 2026 Filing Summary
Business Context and Reporting Period
This Form 10-Q covers the quarterly period ended March 31, 2026. CF Bankshares Inc. is a bank holding company owning 100% of CFBank, National Association, a national bank headquartered in Columbus, Ohio. The company focuses on commercial, retail, and mortgage lending services primarily in Ohio and Indiana. As of May 7, 2026, there were 6,421,414 shares of voting common stock outstanding.
Key Financial Metrics
| Metric | Q1 2026 | Q1 2025 |
|---|---|---|
| Net Income | $5.024 million | $4.430 million |
| Diluted EPS | $0.77 | $0.68 |
| Net Interest Income | $13.320 million | $12.909 million |
| Net Interest Margin | 2.69% | 2.64% |
| Noninterest Income | $1.487 million | $1.206 million |
| Noninterest Expense | $8.311 million | $7.954 million |
| Provision for Credit Losses | $604,000 | $582,000 |
| Total Assets | $2.146 billion | $2.053 billion (Avg) |
| Total Loans (Net) | $1.761 billion | $1.739 billion (Dec 2025) |
| Total Deposits | $1.809 billion | $1.781 billion (Dec 2025) |
| Cash & Equivalents | $267.8 million | $259.0 million (Dec 2025) |
| Stockholders' Equity | $189.0 million | $184.4 million (Dec 2025) |
Material Changes vs. Prior Period
- Profitability: Net income increased 13.4% year-over-year, driven by higher net interest income and noninterest income, partially offset by increased noninterest expenses.
- Interest Rates: Net interest margin improved 5 basis points to 2.69%. Interest expense decreased 9.1% due to a 60bps decrease in the average rate on interest-bearing deposits, despite a 3.3% increase in average deposit balances.
- Asset Quality: Nonperforming loans increased to $20.3 million (1.14% of total loans) from $15.3 million at year-end 2025. This increase was primarily due to one $5.0 million commercial loan placed on nonaccrual status. Criticized and classified loans increased by $28.0 million (97.2%) during the quarter.
- Loan Portfolio: Net loans increased $22.4 million from December 2025, led by growth in commercial real estate and construction loans, offset by a decline in single-family residential loans.
- Tax Rate: The effective tax rate decreased to 14.7% from 20.6% in the prior year, largely due to the impact of low-income housing and historic tax credit investments.
Guidance, Outlook, and Risks
- Capital Position: CFBank remains "well capitalized" under Basel III standards. The Common Equity Tier 1 capital ratio was 13.95%, significantly above the 7.0% minimum requirement.
- Liquidity: The company maintains strong liquidity with $282.0 million in cash and unpledged securities. Additional borrowing capacity includes $192.5 million at the FHLB, $137.2 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 April 21, 2026.
- Risks: Management highlighted risks related to economic conditions affecting credit quality, real estate values, and interest rate volatility. The increase in criticized assets requires close monitoring. The company is subject to regulatory capital requirements that may limit dividend payments if capital levels decline.
Investor Verification Checklist
- Credit Quality Deterioration: Verify the specific details of the $5.0 million commercial loan placed on nonaccrual and the $28 million increase in criticized assets to assess potential future charge-offs.
- Deposit Composition: Review the shift from noninterest-bearing to interest-bearing deposits ($44.9 million decrease vs. $73.7 million increase) to understand the sustainability of the cost of funds reduction.
- Loan Concentration: Assess the exposure to interest-only commercial lines of credit, which totaled $122.6 million (32.4% of the commercial portfolio).
- Tax Credit Investments: Confirm the valuation and amortization of Low Income Housing Tax Credit (LIHTC) and Historic Tax Credit (HTC) investments, which significantly impacted the effective tax rate.
- Regulatory Capital: Monitor the "well capitalized" status and the impact of the capital conservation buffer on future dividend capacity.