COLUMBUS, Ohio, Feb. 7, 2023
/PRNewswire/ -- CF Bankshares Inc. (NASDAQ: CFBK) (the "Company"),
the parent of CFBank, National Association ("CFBank"), today
announced financial results for the fourth quarter and year to date
(YTD) ended December 31, 2022.
Fourth Quarter and Full Year 2022 Highlights
- Net Income of $4.7 million
($0.72 per share) for Q4 2022
which represents a 10% increase over Q3 2022. Pre-provision,
pre-tax net revenue ("PPNR") of $6.5
million for Q4 2022 was up 20% as compared to Q3
2022. For the full year 2022, net income was $18.2 million ($2.78 per share) and PPNR was $23.4 million.
- Return on Average Assets (ROA) was 1.04% and PPNR ROA
was 1.46% for the fourth quarter, while Return on Average
Equity (ROE) was 13.55% and PPNR ROE was 18.96%.
- For the year ended December 31,
2022, ROA was 1.11% and ROE was
13.69%.
- Book value per share increased to $21.43 at December 31,
2022.
- Net loans and leases grew by $98
million during the quarter. Net loans and leases totaled
$1.6 billion at December 31, 2022.
- Credit quality remains strong with nonperforming loans to total
loans of 0.05% and loans more than 30 days past due at
0.13% of total loans.
Recent Developments
- In February 2023, the Company
will be relocating its headquarters to Hamilton Quarter, near
New Albany, Ohio. This new
location consolidates two (2) existing offices as well as provides
significantly increased presence and visibility. Additionally, we
expect increased banking opportunities given its proximity to the
Intel growth corridor. Boutique delivery of Commercial and Personal
Banking services will be provided at the new HQ location.
- On January 4, 2023, the Company's
Board of Directors declared a Cash Dividend of $0.05 per share payable on January 31, 2023 to shareholders of record as of
the close of business on January 17,
2023.
CEO and Board Chair Commentary
Timothy T. O'Dell, President and
CEO, commented: "Our Business model with Boutique delivery
continues to resonate with Business Owners and Entrepreneurs
located in the metro markets we serve. Over the past 12–15 months,
we have successfully doubled the size of our Commercial Banking
teams, adding experienced Talent mostly coming to us from Regional
Banks. The additions of this top Commercial Banking talent has
enabled us to continue shifting our business mix toward Commercial
and Industrial ("C&I"), capturing quality new full service
relationships.
To help offset the pressure on Net Interest Margin ("NIM") from
rising Deposit costs, we are leaning more heavily into SBA loans
and other higher yielding earning assets. In addition, we have a
number of initiatives underway during 2023 to expand Fee Income
revenues, including Swap fee income, along with introducing new
Cash Management products and services along with a new and
competitive Business Credit Card Program.
We are protecting as well as expanding our core Deposit base,
having particular success with increasing our Deposits from not for
profits and local Municipalities.
Our Credit Quality remains pristine, as we have maintained our
disciplines and focus on high quality customers and borrowers.
We expect our new HQ location, which combines two (2) existing
Columbus area locations, will
enhance both efficiency and Teamwork.
Our previous long experiences operating in volatile rate
environments, prepared us to remain nimble while sticking to our
proven business disciplines. We see much opportunity to add quality
new business relationships in this new year.
Our Best is yet Ahead!"
Robert E. Hoeweler, Chairman of
the Board, added: "Our Bank and Team have proven our ability to
maintain strong performance during both changing and varying
economic backdrops. Recently, we successfully navigated Covid and
the residential mortgage industry contraction. Currently, the
industry is challenged by rapidly rising interest rates. We are
well experienced and confident our Leadership is up to the
challenge."
Overview of Results
Net income for the three months ended December 31, 2022 totaled $4.7 million (or $0.72 per diluted common share) compared to net
income of $4.2 million (or
$0.65 per diluted common share) for
the three months ended September 30,
2022 and net income of $4.5
million (or $0.68 per diluted
common share) for the three months ended December 31, 2021. Pre-provision, pre-tax
net revenue ("PPNR") for the three months ended December 31, 2022 was $6.5
million compared to PPNR of $5.4
million for the three months ended September 30, 2022 and $5.6 million for the three months ended
December 31, 2021.
Net income for the year ended December
31, 2022 totaled $18.2 million
(or $2.78 per diluted common share)
compared to net income of $18.5
million (or $2.77 per diluted
common share) for the year ended December
31, 2021. PPNR was $23.4
million for the year ended December
31, 2022 compared to $21.2
million for the year ended December
31, 2021.
Net Interest Income and Net Interest Margin
Net interest income totaled $13.2
million for the quarter ended December 31, 2022 and decreased $161,000, or 1.2%, compared to $13.3 million in the prior quarter, and increased
$2.2 million, or 19.9%, compared to
$11.0 million in the fourth quarter
of 2021.
The decrease in net interest income compared to the prior
quarter was primarily due to a $4.1
million, or 86.5%, increase in interest expense, partially
offset by a $3.9 million, or 21.6%,
increase in interest income. The increase in interest expense when
compared to the prior quarter was attributed to a 104bps increase
in the average cost of funds on interest-bearing liabilities,
coupled with a $130.3 million, or
10.4%, increase in average interest-bearing liabilities. The
increase in interest income was primarily attributed to a
$124.6 million, or 7.9%, increase in
average interest-earning assets outstanding, coupled with a 58bps
increase in average yield on interest-earning assets. The net
interest margin of 3.08% for the quarter ended December 31, 2022 decreased 28bps compared to the
net interest margin of 3.36% for the prior quarter.
The increase in net interest income compared to the fourth
quarter of 2021 was primarily due to an $8.8
million, or 66.8%, increase in interest income, partially
offset by a $6.6 million, or 305.3%,
increase in interest expense. The increase in interest income was
primarily attributed to a $402.6
million, or 30.8%, increase in average interest-earning
assets outstanding, coupled with a 110bps increase in the average
yield on interest-earning assets. The increase in interest
expense was attributed to a $394.1
million, or 40.0%, increase in average interest-bearing
liabilities, coupled with a 166bps increase in the average cost of
funds on interest-bearing liabilities. The net interest margin of
3.08% for the quarter ended December 31,
2022 decreased 28bps compared to the net interest margin of
3.36% for the fourth quarter of 2021.
Noninterest Income
Noninterest income for the quarter ended December 31, 2022 totaled $651,000 and decreased $54,000, or 7.7%, compared to $705,000 for the prior quarter. The
decrease was primarily due to a $173,000 loss on redemption of life insurance,
partially offset by a $124,000
increase in swap fee income.
Noninterest income for the quarter ended December 31, 2022 decreased $731,000, or 52.9%, compared to $1.4 million for the quarter ended December 31, 2021. The decrease was
primarily due to a $590,000 decrease
in net gain on sales of residential mortgage loans, a $209,000 decrease in net gain on sales of
commercial loans, and a $173,000 loss
on redemption of life insurance, partially offset by a $136,000 increase in Swap fee income.
During the second quarter 2022, we exited the DTC mortgage
originations business in favor of lending in our Regional markets.
The following table represents the notional amount of loans sold
during the three months ended December 31,
2022, September 30, 2022, and
December 31, 2021.
|
|
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|
|
|
|
|
|
|
Three Months
ended
|
|
December 31,
2022
|
|
September 30,
2022
|
|
December 31,
2021
|
Notional amount of
loans sold
|
$
|
2,717
|
|
$
|
-
|
|
$
|
130,407
|
|
|
|
|
|
|
|
|
|
The following table represents the revenue recognized on
mortgage activities for the three months ended December 31, 2022, September 30, 2022, and December 31, 2021 (in thousands).
|
|
|
|
|
|
|
|
|
|
Three Months
ended
|
|
December 31,
2022
|
|
September 30,
2022
|
|
December 31,
2021
|
Gain (loss) on loans
sold
|
$
|
(22)
|
|
$
|
-
|
|
$
|
1,025
|
Gain (loss) from change
in fair value of loans held-for-sale
|
|
-
|
|
|
-
|
|
|
(567)
|
Gain (loss) from change
in fair value of derivatives
|
|
-
|
|
|
-
|
|
|
110
|
|
$
|
(22)
|
|
$
|
-
|
|
$
|
568
|
|
Noninterest Expense
Noninterest expense for the quarter ended December 31, 2022 totaled $7.3 million and decreased $1.3 million, or 15.4%, compared to $8.6 million for the prior quarter. The
decrease in noninterest expense was primarily due to a $570,000 decrease in impairment of property and
equipment, a $494,000 decrease in
data processing expense and a $298,000 decrease in salaries and employee
benefits. The decrease in impairment of property and equipment was
related to an impairment booked in the third quarter 2022 for the
pending sale of our headquarters building in Worthington as we prepared to move our
headquarters office to New Albany,
Ohio. The decrease in data processing expense was primarily
related one-time charges for the conversion of our core processing
system during the third quarter of 2022.
Noninterest expense for the quarter ended December 31, 2022 increased $477,000, or 7.0%, compared to $6.8 million for the quarter ended December 31, 2021. The increase in
noninterest expense was primarily due to a $297,000 increase in FDIC premiums and a
$276,000 increase in salaries and
employee benefits. The increase in FDIC expense was related to
increased assets and deposit levels and assessment rates.
Income Tax Expense
Income tax expense was $1.2
million for the quarter ended December 31, 2022 (effective tax rate of 20.8%),
compared to $1.0 million for the
prior quarter (effective tax rate of 19.4%) and $1.1 million for the quarter ended December 31, 2021 (effective tax rate of
19.6%).
Loans and Loans Held For Sale
Net loans and leases totaled $1.6
billion at December 31, 2022
and increased $98.4 million, or 6.7%,
from the prior quarter and increased $358.1
million, or 29.5%, from December 31,
2021. The increase in net loans during the quarter was
primarily due to a $54.2 million
increase in construction loan balances, a $25.5 million increase in single-family
residential loan balances, a $12.3
million increase in commercial loan balances, and a
$6.5 million increase in multi-family
loan balances. The increases in the aforementioned loan balances
were related to increased sales activity and new relationships.
The increase in net loans from December
31, 2021 was primarily due to a $118.3 million increase in single-family
residential loan balances, a $100.8
million increase in construction loan balances, a
$90.5 million increase in commercial
loan balances, a $27.4 million
increase in multi-family loan balances, a $15.5 million increase in commercial real estate
loan balances, and a $6.5 million
increase in home equity lines of credit. The increases in the
aforementioned loan balances were related to increased sales
activity and new relationships.
The following table presents the recorded investment in loans
and leases for certain non-owner-occupied loan types ($ in
thousands).
|
|
|
|
|
|
|
|
|
December 31,
2022
|
|
September 30,
2022
|
June 30,
2022
|
Construction - 1-4
family*
|
$
|
60,791
|
|
$
|
56,397
|
$
|
42,281
|
Construction -
Multi-family*
|
|
87,460
|
|
|
79,714
|
|
56,071
|
Construction -
Non-residential*
|
|
54,221
|
|
|
40,744
|
|
30,220
|
Hotel/Motel
|
|
9,762
|
|
|
16,976
|
|
17,023
|
Industrial /
Warehouse
|
|
18,506
|
|
|
23,658
|
|
26,362
|
Land/Land
Development
|
|
23,877
|
|
|
20,996
|
|
27,895
|
Medical/Healthcare/Senior Housing
|
|
469
|
|
|
495
|
|
3,253
|
Multi-family
|
|
111,210
|
|
|
82,939
|
|
84,580
|
Office
|
|
44,686
|
|
|
45,070
|
|
40,526
|
Retail
|
|
24,781
|
|
|
25,029
|
|
26,631
|
Other
|
$
|
49,897
|
|
$
|
51,655
|
$
|
61,089
|
|
|
|
|
|
|
|
|
*CFbank possesses a core competency and deep expertise in
Construction Lending. The construction lending business
sector has produced many full banking relationships with proven
developers with long successful track records.
Asset Quality
Nonaccrual loans were $761,000, or
0.05%, of total loans at December 31,
2022, a decrease of $243,000
from nonaccrual loans at September 30,
2022 and a decrease of $236,000 from nonaccrual loans at December 31, 2021. Loans past due more than
30 days totaled $2.1 million at
December 31, 2022 compared to
$1.3 million at September 30, 2022 and $3.6 million at December
31, 2021.
The allowance for loan and lease losses (ALLL) totaled
$16.1 million at December 31, 2022 compared to $15.7 million at September
30, 2022 and $15.5 million at
December 31, 2021. The ratio of
the ALLL to total loans was 1.01% at December 31, 2022 compared to 1.05% at
September 30, 2022 and 1.26% at
December 31, 2021.
There was $637,000 in provision
for loan and lease losses expense for the quarter ended
December 31, 2022. There was
$150,000 in provision for loan and
lease losses expense for the quarter ended September 30, 2022 and no provision for loan and
lease losses expense for the quarter ended December 31, 2021. Net charge-offs for the
quarter ended December 31, 2022
totaled $262,000 compared to net
recoveries of $5,000 for the prior
quarter and net recoveries of $21,000
for the quarter ended December 31,
2021.
Deposits
Deposits totaled $1.5 billion at
December 31, 2022, an increase of
$37.9 million, or 2.6%, when compared
to $1.5 billion at September 30, 2022, and an increase of
$281.6 million, or 22.6%, when
compared to $1.2 billion at
December 31, 2021. The increase
when compared to the prior quarter end is primarily due to an
$84.9 million increase in money
market account balances, partially offset by a $41.9 million decrease in certificate of deposit
account balances and a $4.0 million
decrease in checking account balances. The increase when compared
to December 31, 2021 is primarily due
to a $326.9 million increase in money
market account balances, partially offset by a $26.4 million decrease in certificate of deposit
account balances and a $16.9 million
decrease in checking account balances. The increase in money
market account balances during the quarter and year ended
December 31, 2022 included several
new Public Funds deposit relationships totaling approximately
$47 million and $207 million, respectively.
Noninterest-bearing deposit accounts totaled $263.2 million at December
31, 2022 and decreased $7.7
million from $270.9 million at
September 30, 2022, and decreased
$21.7 million from $284.9 million at December
31, 2021.
Borrowings
FHLB advances and other debt totaled $109.5 million at December
31, 2022, an increase of $6.7
million, or 6.5%, when compared to $102.8 million at September 30, 2022 and an increase of
$19.8 million when compared to
$89.7 million at December 31, 2021. The increase when compared to
the prior quarter was due to an increase of $6.5 million on the Company's line of credit with
a third party financial institution. The increase when
compared to December 31, 2021 was
primarily due to a $15.0 million
increase in FHLB advances and an increase of $5.2 million on the Company's line of credit with
a third party financial institution.
Capital
Stockholders' equity totaled $139.2
million at December 31, 2022,
an increase of $4.3 million, or 3.2%,
from $134.9 million at September 30, 2022. Stockholders' equity
increased $13.9 million, or 11.1%,
from $125.3 million at December 31, 2021. The increase in total
stockholders' equity during the three months ended December 31, 2022 was primarily attributed to net
income, partially offset by a $383,000 increase in other comprehensive loss.
The increase in total stockholders' equity during the twelve months
ended December 31, 2022 was primarily
attributed to net income, partially offset by share repurchases of
$2.5 million and a $1.9 million increase in other comprehensive
loss. The other comprehensive loss was the result of the
mark-to-market adjustment of our investment portfolio.
USE OF NON-GAAP FINANCIAL MEASURES
This earnings release contains financial information and
performance measures determined by methods other than in accordance
with accounting principles generally accepted in the United States of America (GAAP).
Management uses these "non-GAAP" financial measures in its analysis
of the Company's performance and believes that these non-GAAP
financial measures provide a greater understanding of ongoing
operations and enhance comparability of results with prior periods
and peers. These disclosures should not be viewed as
substitutes for financial measures determined in accordance with
GAAP, nor are they necessarily comparable to non-GAAP performance
measures that may be presented by other companies. Non-GAAP
financial measures included in this earnings release include
Pre-Provision, Pre-Tax Net Revenue (PPNR), PPNR Return on Average
Assets and PPNR Return on Average Equity. A reconciliation of
these non-GAAP financial measures to the most directly comparable
GAAP financial measures is included at the end of this earnings
release under the heading "GAAP TO NON-GAAP RECONCILIATION."
About CF Bankshares Inc. and CFBank
CF Bankshares Inc. (the Company) is a holding company that owns
100% of the stock of CFBank, National Association (CFBank). CFBank
is a nationally chartered boutique Commercial bank operating
primarily in Four (4) Major Metro Markets: Columbus, Cleveland, and Cincinnati, Ohio, and Indianapolis, Indiana. The current Leadership
Team and Board recapitalized the Company and CFBank in 2012 during
the financial crisis, repositioning CFBank as a full-service
Commercial Bank model. Since the 2012 recapitalization, CFBank has
achieved a CAGR of nearly 25%.
CFBank focuses on serving the financial needs of closely held
businesses and entrepreneurs, by providing a comprehensive
Commercial, Retail, and Mortgage Lending services presence. In all
regional markets, CFBank provides commercial loans and equipment
leases, commercial and residential real estate loans and treasury
management depository services, residential mortgage lending, and
full-service commercial and retail banking services and
products. CFBank is differentiated by our penchant for
individualized service coupled with direct customer access to
decision-makers, and ease of doing business. CFBank matches the
sophistication of much larger banks, without the bureaucracy.
CFBank was recently recognized in CB Resource Inc.'s Durable
Performance Index which highlighted banks who have maintained above
average performance over the course of the last three years based
on 11 key performance indicators over the three-year period ended
September 30, 2022. In
addition, CFBank ranked #7 on American Banker's listing of Top 200
Publicly Traded Community Banks based on 3-year average return on
equity as of December 31, 2021 and
has been recognized as a Small Cap All-Star performer by
Piper Sandler in 2021, 2020, and
2019.
Additional information about the Company and CFBank is available
at www.CF.Bank
FORWARD LOOKING STATEMENTS
This press release and other materials we have filed or may file
with the Securities and Exchange Commission ("SEC") contain or may
contain forward-looking statements within the meaning of the safe
harbor provisions of the U.S. Private Securities Reform Act of
1995, 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 CF
Bankshares Inc. 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, including, without limitation,
impacts from the ongoing COVID-19 pandemic on local, national and
global economic conditions in general and on our industry and
business in particular, including adverse impacts on our customer's
operations, financial condition and ability to repay loans, changes
in interest rates or disruptions in the mortgage market, and
inflationary pressures, and those additional risks detailed from
time to time in our reports filed with the SEC, including those
risk factors identified in "Item 1A. Risk Factors" of Part I
of our Annual Report on Form 10-K filed with SEC for the year ended
December 31, 2021, as supplemented by
the risk factors identified in "Item 1A. Risk Factors" of Part II
of our Quarterly Reports on Form 10-Q filed with the SEC for the
quarters ended March 31, 2022 and
June 30, 2022.
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. We believe that we have 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 press release speak only as of the date
hereof. 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.
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|
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|
Consolidated
Statements of Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in thousands,
except share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited)
|
Three months
ended
|
|
|
|
Year
ended
|
|
|
|
December
31,
|
|
|
|
December
31,
|
|
|
|
2022
|
|
2021
|
|
%
change
|
|
2022
|
|
2021
|
|
%
change
|
Total interest
income
|
$
|
21,901
|
|
$
|
13,127
|
|
67 %
|
|
$
|
67,764
|
|
|
52,348
|
|
29 %
|
Total interest
expense
|
|
8,746
|
|
|
2,158
|
|
305 %
|
|
|
18,974
|
|
|
10,309
|
|
84 %
|
Net interest
income
|
|
13,155
|
|
|
10,969
|
|
20 %
|
|
|
48,790
|
|
|
42,039
|
|
16 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for loan and
lease losses
|
|
637
|
|
|
-
|
|
n/m
|
|
|
787
|
|
|
(1,600)
|
|
n/m
|
Net interest income
after provision for loan and lease
losses
|
|
12,518
|
|
|
10,969
|
|
14 %
|
|
|
48,003
|
|
|
43,639
|
|
10 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service
charges on deposit accounts
|
|
312
|
|
|
233
|
|
34 %
|
|
|
1,135
|
|
|
845
|
|
34 %
|
Net gain
(loss) on sales of residential mortgage loans
|
|
(22)
|
|
|
568
|
|
n/m
|
|
|
656
|
|
|
5,916
|
|
-89 %
|
Net gain
on sale of commercial loans
|
|
76
|
|
|
285
|
|
-73 %
|
|
|
353
|
|
|
1,443
|
|
-76 %
|
Swap fee
income
|
|
148
|
|
|
12
|
|
1133 %
|
|
|
190
|
|
|
194
|
|
-2 %
|
Gain
(loss) on redemption of life insurance
|
|
(173)
|
|
|
-
|
|
n/m
|
|
|
(173)
|
|
|
383
|
|
n/m
|
Gain on
sale of deposits
|
|
-
|
|
|
-
|
|
n/m
|
|
|
-
|
|
|
1,893
|
|
n/m
|
Other
|
|
310
|
|
|
284
|
|
9 %
|
|
|
1,049
|
|
|
966
|
|
9 %
|
Noninterest
income
|
|
651
|
|
|
1,382
|
|
-53 %
|
|
|
3,210
|
|
|
11,640
|
|
-72 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries
and employee benefits
|
|
3,814
|
|
|
3,538
|
|
8 %
|
|
|
15,125
|
|
|
16,948
|
|
-11 %
|
Occupancy
and equipment
|
|
298
|
|
|
285
|
|
5 %
|
|
|
1,253
|
|
|
1,120
|
|
12 %
|
Data
processing
|
|
632
|
|
|
506
|
|
25 %
|
|
|
2,807
|
|
|
2,086
|
|
35 %
|
Franchise
and other taxes
|
|
312
|
|
|
252
|
|
24 %
|
|
|
1,151
|
|
|
975
|
|
18 %
|
Professional fees
|
|
610
|
|
|
793
|
|
-23 %
|
|
|
2,758
|
|
|
4,348
|
|
-37 %
|
Director
fees
|
|
167
|
|
|
156
|
|
7 %
|
|
|
632
|
|
|
622
|
|
2 %
|
Postage,
printing, and supplies
|
|
57
|
|
|
26
|
|
119 %
|
|
|
183
|
|
|
146
|
|
25 %
|
Advertising and marketing
|
|
144
|
|
|
489
|
|
-71 %
|
|
|
431
|
|
|
3,061
|
|
-86 %
|
Telephone
|
|
69
|
|
|
72
|
|
-4 %
|
|
|
249
|
|
|
263
|
|
-5 %
|
Loan
expenses
|
|
192
|
|
|
165
|
|
16 %
|
|
|
694
|
|
|
352
|
|
97 %
|
Depreciation
|
|
121
|
|
|
124
|
|
-2 %
|
|
|
496
|
|
|
435
|
|
14 %
|
FDIC
premiums
|
|
440
|
|
|
143
|
|
208 %
|
|
|
1,130
|
|
|
1,238
|
|
-9 %
|
Regulatory
assessment
|
|
71
|
|
|
65
|
|
9 %
|
|
|
272
|
|
|
261
|
|
4 %
|
Other
insurance
|
|
42
|
|
|
45
|
|
-7 %
|
|
|
177
|
|
|
158
|
|
12 %
|
Impairment
of property and equipment
|
|
-
|
|
|
-
|
|
n/m
|
|
|
570
|
|
|
-
|
|
n/m
|
Other
|
|
304
|
|
|
137
|
|
122 %
|
|
|
693
|
|
|
448
|
|
55 %
|
Noninterest
expense
|
|
7,273
|
|
|
6,796
|
|
7 %
|
|
|
28,621
|
|
|
32,461
|
|
-12 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
5,896
|
|
|
5,555
|
|
6 %
|
|
|
22,592
|
|
|
22,818
|
|
-1 %
|
Income tax
expense
|
|
1,225
|
|
|
1,088
|
|
13 %
|
|
|
4,428
|
|
|
4,365
|
|
1 %
|
Net Income
|
$
|
4,671
|
|
$
|
4,467
|
|
5 %
|
|
$
|
18,164
|
|
$
|
18,453
|
|
-2 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
common share
|
$
|
0.73
|
|
$
|
0.69
|
|
|
|
$
|
2.84
|
|
$
|
2.84
|
|
|
Diluted earnings per
common share
|
$
|
0.72
|
|
$
|
0.68
|
|
|
|
$
|
2.78
|
|
$
|
2.77
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average common shares
outstanding - basic
|
|
6,363,552
|
|
|
6,448,896
|
|
|
|
|
6,397,053
|
|
|
6,508,156
|
|
|
Average common shares
outstanding - diluted
|
|
6,491,820
|
|
|
6,585,511
|
|
|
|
|
6,535,160
|
|
|
6,650,447
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
n/m - not
meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Statements of Financial Condition
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in
thousands)
|
Dec
31,
|
|
Sept
30,
|
|
Jun
30,
|
|
Mar
31,
|
|
Dec
31,
|
|
(unaudited)
|
2022
|
|
2022
|
|
2022
|
|
2022
|
|
2021
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
151,787
|
|
$
|
198,066
|
|
$
|
154,850
|
|
$
|
168,290
|
|
$
|
166,591
|
|
Interest-bearing
deposits in other financial institutions
|
|
100
|
|
|
100
|
|
|
100
|
|
|
100
|
|
|
100
|
|
Securities available
for sale
|
|
10,442
|
|
|
11,436
|
|
|
12,220
|
|
|
13,004
|
|
|
16,347
|
|
Equity
Securities
|
|
5,000
|
|
|
5,000
|
|
|
5,000
|
|
|
5,000
|
|
|
5,000
|
|
Loans held for
sale
|
|
580
|
|
|
-
|
|
|
-
|
|
|
8,470
|
|
|
27,988
|
|
Loans and
leases
|
|
1,588,317
|
|
|
1,489,570
|
|
|
1,393,759
|
|
|
1,296,836
|
|
|
1,229,657
|
|
Less allowance
for loan and lease losses
|
|
(16,062)
|
|
|
(15,687)
|
|
|
(15,532)
|
|
|
(15,520)
|
|
|
(15,508)
|
|
Loans and leases,
net
|
|
1,572,255
|
|
|
1,473,883
|
|
|
1,378,227
|
|
|
1,281,316
|
|
|
1,214,149
|
|
FHLB and FRB
stock
|
|
7,942
|
|
|
7,633
|
|
|
7,332
|
|
|
7,326
|
|
|
7,315
|
|
Premises and equipment,
net
|
|
3,778
|
|
|
3,792
|
|
|
6,110
|
|
|
6,032
|
|
|
5,869
|
|
Other assets held for
sale
|
|
1,930
|
|
|
1,930
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Operating lease right
of use assets
|
|
1,357
|
|
|
1,499
|
|
|
1,638
|
|
|
1,782
|
|
|
1,925
|
|
Bank owned life
insurance
|
|
25,641
|
|
|
26,189
|
|
|
26,038
|
|
|
25,889
|
|
|
25,743
|
|
Accrued interest
receivable and other assets
|
|
39,362
|
|
|
34,514
|
|
|
27,962
|
|
|
26,986
|
|
|
24,562
|
|
Total assets
|
$
|
1,820,174
|
|
$
|
1,764,042
|
|
$
|
1,619,477
|
|
$
|
1,544,195
|
|
$
|
1,495,589
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
bearing
|
$
|
263,241
|
|
$
|
270,945
|
|
$
|
244,484
|
|
$
|
253,778
|
|
$
|
284,935
|
|
Interest bearing
|
|
1,264,681
|
|
|
1,219,038
|
|
|
1,133,005
|
|
|
1,045,008
|
|
|
961,417
|
|
Total deposits
|
|
1,527,922
|
|
|
1,489,983
|
|
|
1,377,489
|
|
|
1,298,786
|
|
|
1,246,352
|
|
FHLB advances and other
debt
|
|
109,461
|
|
|
102,803
|
|
|
75,594
|
|
|
83,235
|
|
|
89,727
|
|
Advances by borrowers
for taxes and insurance
|
|
3,513
|
|
|
2,573
|
|
|
1,879
|
|
|
2,078
|
|
|
2,752
|
|
Operating lease
liabilities
|
|
1,438
|
|
|
1,588
|
|
|
1,736
|
|
|
1,889
|
|
|
2,032
|
|
Accrued interest
payable and other liabilities
|
|
23,670
|
|
|
17,311
|
|
|
15,185
|
|
|
14,972
|
|
|
14,513
|
|
Subordinated
debentures
|
|
14,922
|
|
|
14,912
|
|
|
14,903
|
|
|
14,893
|
|
|
14,883
|
|
Total liabilities
|
|
1,680,926
|
|
|
1,629,170
|
|
|
1,486,786
|
|
|
1,415,853
|
|
|
1,370,259
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity
|
|
139,248
|
|
|
134,872
|
|
|
132,691
|
|
|
128,342
|
|
|
125,330
|
|
Total liabilities and
stockholders' equity
|
$
|
1,820,174
|
|
$
|
1,764,042
|
|
$
|
1,619,477
|
|
$
|
1,544,195
|
|
$
|
1,495,589
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Balance
Sheet and Yield Analysis
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For Three Months
Ended
|
|
December 31,
2022
|
|
September 30,
2022
|
|
December 31,
2021
|
|
Average
|
|
Interest
|
|
Average
|
|
Average
|
|
Interest
|
|
Average
|
|
Average
|
|
Interest
|
|
Average
|
|
Outstanding
|
|
Earned/
|
|
Yield/
|
|
Outstanding
|
|
Earned/
|
|
Yield/
|
|
Outstanding
|
|
Earned/
|
|
Yield/
|
|
Balance
|
|
Paid
|
|
Rate
|
|
Balance
|
|
Paid
|
|
Rate
|
|
Balance
|
|
Paid
|
|
Rate
|
|
(Dollars in
thousands)
|
Interest-earning
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities (1)
(2)
|
$
|
16,178
|
|
$
|
217
|
|
|
4.75 %
|
|
$
|
17,044
|
|
$
|
219
|
|
|
4.64 %
|
|
$
|
21,768
|
|
$
|
227
|
|
|
4.18 %
|
Loans and leases and
loans held
for sale (3)
|
|
1,522,529
|
|
|
19,971
|
|
|
5.25 %
|
|
|
1,424,326
|
|
|
16,876
|
|
|
4.74 %
|
|
|
1,205,878
|
|
|
12,804
|
|
|
4.25 %
|
Other earning
assets
|
|
161,904
|
|
|
1,603
|
|
|
3.96 %
|
|
|
135,240
|
|
|
813
|
|
|
2.40 %
|
|
|
71,647
|
|
|
29
|
|
|
0.16 %
|
FHLB and FRB
stock
|
|
7,810
|
|
|
110
|
|
|
5.63 %
|
|
|
7,192
|
|
|
98
|
|
|
5.45 %
|
|
|
6,520
|
|
|
67
|
|
|
4.11 %
|
Total interest-earning
assets
|
|
1,708,421
|
|
|
21,901
|
|
|
5.12 %
|
|
|
1,583,802
|
|
|
18,006
|
|
|
4.54 %
|
|
|
1,305,813
|
|
|
13,127
|
|
|
4.02 %
|
Noninterest-earning
assets
|
|
86,974
|
|
|
|
|
|
|
|
|
78,222
|
|
|
|
|
|
|
|
|
75,345
|
|
|
|
|
|
|
Total
assets
|
$
|
1,795,395
|
|
|
|
|
|
|
|
$
|
1,662,024
|
|
|
|
|
|
|
|
$
|
1,381,158
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
$
|
1,260,255
|
|
|
7,775
|
|
|
2.47 %
|
|
$
|
1,154,605
|
|
|
3,992
|
|
|
1.38 %
|
|
$
|
924,453
|
|
|
1,632
|
|
|
0.71 %
|
FHLB advances and other
borrowings
|
|
118,083
|
|
|
971
|
|
|
3.29 %
|
|
|
93,397
|
|
|
698
|
|
|
2.99 %
|
|
|
59,782
|
|
|
526
|
|
|
3.52 %
|
Total interest-bearing
liabilities
|
|
1,378,338
|
|
|
8,746
|
|
|
2.54 %
|
|
|
1,248,002
|
|
|
4,690
|
|
|
1.50 %
|
|
|
984,235
|
|
|
2,158
|
|
|
0.88 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
liabilities
|
|
279,212
|
|
|
|
|
|
|
|
|
279,383
|
|
|
|
|
|
|
|
|
273,691
|
|
|
|
|
|
|
Total
liabilities
|
|
1,657,550
|
|
|
|
|
|
|
|
|
1,527,385
|
|
|
|
|
|
|
|
|
1,257,926
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
137,845
|
|
|
|
|
|
|
|
|
134,639
|
|
|
|
|
|
|
|
|
123,232
|
|
|
|
|
|
|
Total liabilities and
equity
|
$
|
1,795,395
|
|
|
|
|
|
|
|
$
|
1,662,024
|
|
|
|
|
|
|
|
$
|
1,381,158
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest-earning
assets
|
$
|
330,083
|
|
|
|
|
|
|
|
$
|
335,800
|
|
|
|
|
|
|
|
$
|
321,578
|
|
|
|
|
|
|
Net interest
income/interest rate
spread
|
|
|
|
$
|
13,155
|
|
|
2.58 %
|
|
|
|
|
$
|
13,316
|
|
|
3.04 %
|
|
|
|
|
$
|
10,969
|
|
|
3.14 %
|
Net interest
margin
|
|
|
|
|
|
|
|
3.08 %
|
|
|
|
|
|
|
|
|
3.36 %
|
|
|
|
|
|
|
|
|
3.36 %
|
Average
interest-earning assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
to average
interest-bearing liabilities
|
|
123.95 %
|
|
|
|
|
|
|
|
|
126.91 %
|
|
|
|
|
|
|
|
|
132.67 %
|
|
|
|
|
|
|
|
(1) Average balance is computed
using the carrying value of securities. Average yield is
computed using the historical amortized cost average balance for
available for sale securities.
|
(2) Average yields and interest
earned are stated on a fully taxable equivalent
basis.
|
(3) Average balance is computed
using the recorded investment in loans net of
the ALLL and
includes nonperforming loans.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Financial Highlights
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At or for the three
months ended
|
|
At or for the year
ended
|
($ in thousands
except per share data)
|
|
Dec
31,
|
|
Sept
30,
|
|
Jun
30,
|
|
Mar
31,
|
|
Dec
31,
|
|
|
December
31,
|
(unaudited)
|
|
2022
|
|
2022
|
|
2022
|
|
2022
|
|
2021
|
|
|
2022
|
|
|
2021
|
Earnings and
Dividends
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$
|
13,155
|
|
$
|
13,316
|
|
$
|
11,545
|
|
$
|
10,774
|
|
$
|
10,969
|
|
$
|
48,790
|
|
$
|
42,039
|
Provision for loan and
lease losses
|
|
$
|
637
|
|
$
|
150
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
787
|
|
$
|
(1,600)
|
Noninterest
income
|
|
$
|
651
|
|
$
|
705
|
|
$
|
808
|
|
$
|
1,046
|
|
$
|
1,382
|
|
$
|
3,210
|
|
$
|
11,640
|
Noninterest
expense
|
|
$
|
7,273
|
|
$
|
8,599
|
|
$
|
6,472
|
|
$
|
6,277
|
|
$
|
6,796
|
|
$
|
28,621
|
|
$
|
32,461
|
Net Income
|
|
$
|
4,671
|
|
$
|
4,249
|
|
$
|
4,726
|
|
$
|
4,518
|
|
$
|
4,467
|
|
$
|
18,164
|
|
$
|
18,453
|
Basic earnings per
common share
|
|
$
|
0.73
|
|
$
|
0.66
|
|
$
|
0.74
|
|
$
|
0.70
|
|
$
|
0.69
|
|
$
|
2.84
|
|
$
|
2.84
|
Diluted earnings per
common share
|
|
$
|
0.72
|
|
$
|
0.65
|
|
$
|
0.72
|
|
$
|
0.69
|
|
$
|
0.68
|
|
$
|
2.78
|
|
$
|
2.77
|
Dividends declared per
share
|
|
$
|
0.05
|
|
$
|
0.05
|
|
$
|
0.04
|
|
$
|
0.04
|
|
$
|
0.04
|
|
$
|
0.18
|
|
$
|
0.13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance Ratios
(annualized)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets
|
|
|
1.04 %
|
|
|
1.02 %
|
|
|
1.18 %
|
|
|
1.24 %
|
|
|
1.29 %
|
|
|
1.11 %
|
|
|
1.26 %
|
Return on average
equity
|
|
|
13.55 %
|
|
|
12.62 %
|
|
|
14.61 %
|
|
|
14.32 %
|
|
|
14.50 %
|
|
|
13.69 %
|
|
|
15.58 %
|
Average yield on
interest-earning assets
|
|
|
5.12 %
|
|
|
4.54 %
|
|
|
3.88 %
|
|
|
3.82 %
|
|
|
4.02 %
|
|
|
4.37 %
|
|
|
3.79 %
|
Average rate paid on
interest-bearing
liabilities
|
|
|
2.54 %
|
|
|
1.50 %
|
|
|
1.05 %
|
|
|
0.90 %
|
|
|
0.88 %
|
|
|
1.55 %
|
|
|
0.95 %
|
Average interest rate
spread
|
|
|
2.58 %
|
|
|
3.04 %
|
|
|
2.83 %
|
|
|
2.92 %
|
|
|
3.14 %
|
|
|
2.82 %
|
|
|
2.84 %
|
Net interest margin,
fully taxable
equivalent
|
|
|
3.08 %
|
|
|
3.36 %
|
|
|
3.04 %
|
|
|
3.13 %
|
|
|
3.36 %
|
|
|
3.15 %
|
|
|
3.04 %
|
Efficiency
ratio
|
|
|
52.68 %
|
|
|
61.33 %
|
|
|
52.39 %
|
|
|
53.10 %
|
|
|
55.02 %
|
|
|
55.04 %
|
|
|
60.47 %
|
Noninterest expense to
average assets
|
|
|
1.62 %
|
|
|
2.07 %
|
|
|
1.62 %
|
|
|
1.72 %
|
|
|
1.97 %
|
|
|
1.76 %
|
|
|
2.22 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 capital leverage
ratio (1)
|
|
|
9.89 %
|
|
|
10.00 %
|
|
|
10.09 %
|
|
|
11.06 %
|
|
|
11.29 %
|
|
|
9.89 %
|
|
|
11.29 %
|
Total risk-based
capital ratio (1)
|
|
|
12.74 %
|
|
|
12.78 %
|
|
|
13.33 %
|
|
|
14.01 %
|
|
|
14.02 %
|
|
|
12.74 %
|
|
|
14.02 %
|
Tier 1 risk-based
capital ratio (1)
|
|
|
11.65 %
|
|
|
11.65 %
|
|
|
12.13 %
|
|
|
12.76 %
|
|
|
12.77 %
|
|
|
11.65 %
|
|
|
12.77 %
|
Common equity tier 1
capital to risk
weighted assets (1)
|
|
|
11.65 %
|
|
|
11.65 %
|
|
|
12.13 %
|
|
|
12.76 %
|
|
|
12.77 %
|
|
|
11.65 %
|
|
|
12.77 %
|
Equity to total assets
at end of period
|
|
|
7.65 %
|
|
|
7.65 %
|
|
|
8.19 %
|
|
|
8.31 %
|
|
|
8.38 %
|
|
|
7.65 %
|
|
|
8.38 %
|
Book value per common
share
|
|
$
|
21.43
|
|
$
|
20.85
|
|
$
|
20.25
|
|
$
|
19.70
|
|
$
|
19.28
|
|
$
|
21.43
|
|
$
|
19.28
|
Tangible book value per
common share
|
|
$
|
21.43
|
|
$
|
20.85
|
|
$
|
20.25
|
|
$
|
19.70
|
|
$
|
19.28
|
|
$
|
21.43
|
|
$
|
19.28
|
Period-end market value
per common
share
|
|
$
|
21.18
|
|
$
|
20.62
|
|
$
|
21.00
|
|
$
|
22.30
|
|
$
|
20.53
|
|
$
|
21.18
|
|
$
|
20.53
|
Period-end common
shares outstanding
|
|
|
6,496,824
|
|
|
6,467,278
|
|
|
6,552,020
|
|
|
6,515,927
|
|
|
6,500,248
|
|
|
6,496,824
|
|
|
6,500,248
|
Average basic common
shares
outstanding
|
|
|
6,363,552
|
|
|
6,393,531
|
|
|
6,413,884
|
|
|
6,417,881
|
|
|
6,448,896
|
|
|
6,397,053
|
|
|
6,508,156
|
Average diluted common
shares
outstanding
|
|
|
6,491,820
|
|
|
6,547,791
|
|
|
6,552,763
|
|
|
6,548,380
|
|
|
6,585,511
|
|
|
6,535,160
|
|
|
6,650,447
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset
Quality
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming
loans
|
|
$
|
761
|
|
$
|
1,004
|
|
$
|
921
|
|
$
|
1,006
|
|
$
|
997
|
|
$
|
761
|
|
$
|
997
|
Nonperforming loans to
total loans
|
|
|
0.05 %
|
|
|
0.07 %
|
|
|
0.07 %
|
|
|
0.08 %
|
|
|
0.08 %
|
|
|
0.05 %
|
|
|
0.08 %
|
Nonperforming assets to
total assets
|
|
|
0.04 %
|
|
|
0.06 %
|
|
|
0.06 %
|
|
|
0.07 %
|
|
|
0.07 %
|
|
|
0.04 %
|
|
|
0.07 %
|
Allowance for loan and
lease losses to
total loans
|
|
|
1.01 %
|
|
|
1.05 %
|
|
|
1.11 %
|
|
|
1.20 %
|
|
|
1.26 %
|
|
|
1.01 %
|
|
|
1.26 %
|
Allowance for loan and
lease losses to
nonperforming loans
|
|
|
2110.64 %
|
|
|
1562.45 %
|
|
|
1686.43 %
|
|
|
1542.74 %
|
|
|
1555.47 %
|
|
|
2110.64 %
|
|
|
1555.47 %
|
Net charge-offs
(recoveries)
|
|
$
|
262
|
|
$
|
(5)
|
|
$
|
(12)
|
|
$
|
(12)
|
|
$
|
(21)
|
|
$
|
233
|
|
$
|
(86)
|
Annualized net
charge-offs (recoveries)
to average loans
|
|
|
0.07 %
|
|
|
0.00 %
|
|
|
0.00 %
|
|
|
0.00 %
|
|
|
(0.01 %)
|
|
|
0.02 %
|
|
|
(0.01 %)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
Balances
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
$
|
1,537,941
|
|
$
|
1,439,863
|
|
$
|
1,340,330
|
|
$
|
1,254,639
|
|
$
|
1,173,853
|
|
$
|
1,394,838
|
|
$
|
1,048,349
|
Assets
|
|
$
|
1,795,395
|
|
$
|
1,662,024
|
|
$
|
1,596,926
|
|
$
|
1,456,003
|
|
$
|
1,381,158
|
|
$
|
1,629,191
|
|
$
|
1,461,180
|
Stockholders'
equity
|
|
$
|
137,845
|
|
$
|
134,639
|
|
$
|
129,423
|
|
$
|
126,199
|
|
$
|
123,232
|
|
$
|
132,642
|
|
$
|
118,430
|
|
(1)
Regulatory capital ratios of CFBank
|
|
GAAP TO NON-GAAP RECONCILIATION
This press release contains certain non-GAAP disclosures for:
(1) PPNR, (2) PPNR return on average assets and (3) PPNR return on
average equity. The Company uses these non-GAAP financial
measures to provide meaningful supplemental information regarding
the Company's operations performance and to enhance investors'
overall understanding of such financial performance. In
particular, the use of PPNR is prevalent among banking regulators,
investors, and analysts. Accordingly, we disclose the
non-GAAP measures in addition to the related GAAP measures of: (1)
net earnings (2) return on average assets and (3) return on average
equity.
The table below presents the reconciliation of these GAAP
financial measures to the related non-GAAP financial measures:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-provision, pre-tax
net revenue ("PPNR"),
|
|
|
|
|
|
|
|
|
|
|
|
PPNR Return on Average
Assets and PPNR Return on Average Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year Ended
|
|
December 31,
|
|
September
30,
|
|
December 31,
|
|
December 31,
|
|
2022
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Net income
|
$
|
4,671
|
|
$
|
4,249
|
|
$
|
4,467
|
|
$
|
18,164
|
|
$
|
18,453
|
Add: Provision for
credit losses
|
|
637
|
|
|
150
|
|
|
-
|
|
|
787
|
|
|
(1,600)
|
Add: Income tax
expense
|
|
1,225
|
|
|
1,023
|
|
|
1,088
|
|
|
4,428
|
|
|
4,365
|
Pre-provision, pre-tax
net revenue
|
$
|
6,533
|
|
$
|
5,422
|
|
$
|
5,555
|
|
$
|
23,379
|
|
$
|
21,218
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
Assets
|
$
|
1,795,395
|
|
$
|
1,662,024
|
|
$
|
1,381,158
|
|
$
|
1,629,191
|
|
$
|
1,461,180
|
Average Stockholders'
Equity
|
$
|
137,845
|
|
$
|
134,639
|
|
$
|
123,232
|
|
$
|
132,642
|
|
$
|
118,430
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets (1)
|
|
1.04 %
|
|
|
1.02 %
|
|
|
1.29 %
|
|
|
1.11 %
|
|
|
1.26 %
|
PPNR return on average
assets (2)
|
|
1.46 %
|
|
|
1.30 %
|
|
|
1.61 %
|
|
|
1.44 %
|
|
|
1.45 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
equity (3)
|
|
13.55 %
|
|
|
12.62 %
|
|
|
14.50 %
|
|
|
13.69 %
|
|
|
15.58 %
|
PPNR return on average
equity (4)
|
|
18.96 %
|
|
|
16.11 %
|
|
|
18.03 %
|
|
|
17.63 %
|
|
|
17.92 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Annualized net
income divided by average assets
|
|
|
|
|
|
|
|
|
(2) Annualized PPNR
divided by average assets
|
|
|
|
|
|
|
|
|
(3) Annualized net
income divided by average stockholders' equity
|
|
|
|
|
|
|
|
|
(4) Annualized PPNR
divided by average stockholders' equity
|
|
|
|
|
|
|
|
|
View original
content:https://www.prnewswire.com/news-releases/cf-bankshares-inc-parent-of-cfbank-na-reports-results-for-the-4th-quarter-and-full-year-2022-301740670.html
SOURCE CF Bankshares Inc.