WORTHINGTON/COLUMBUS, Ohio, Feb. 19,
2019 /PRNewswire/ -- Central Federal Corporation (NASDAQ: CFBK) (the "Company") today announced financial results for
the fourth quarter and year ended December 31, 2018.
Fourth Quarter and Full Year 2018 Highlights
- Net income before taxes increased 64% for the quarter, compared to the same quarter in 2017 and increased 54% for the
full year compared to 2017.
- EPS (fully diluted) increased by $0.09 per share, or 38%, for the quarter to $0.33 compared to the previous quarter. EPS (fully diluted) for the full year was $1.00.
- Book value at December 31, 2018 of $10.51 per share was up
$1.03, or 11%, from December 31, 2017.
- Net loans grew by $144 million during 2018. Net interest income grew by 34% for the
quarter compared to the fourth quarter in 2017 and increased 31% year over year.
- Noninterest income for the year of $2.7 million increased by 266% compared to 2017 due
primarily to the investment in and expansion of our residential mortgage lending business.
- Credit quality remains strong. The bank experienced net recoveries of $42,000 for 2018,
which was the fifth consecutive year of net recoveries.
Timothy T. O'Dell, President and CEO, commented, "We are pleased with our consistently
improving performance and increasing earnings. During 2018, net loans grew by $144 million
which contributed to increasing net income before taxes by 54% year over year. Fourth quarter results also began to reflect
returns from investing earlier in building our residential mortgage lending business. Increased volumes of saleable
mortgage loans gave a lift to Noninterest income which more than doubled during the year. We believe that we are well
positioned to continue this strong earnings growth performance into 2019, benefitting from increasing scale as well as growth in
our fee income businesses, including home mortgage and SBA lending volumes. In addition, we are gaining business opportunities
from our growing presence in the Cincinnati market. Cincinnati
is our 4th and newest major metro market, which includes Columbus, Cleveland, and Akron/Canton metro markets,
along with our two community banks operating in the Columbiana County market. We are proud of
the excellent performance gains during 2018, and very bullish about our business prospects and opportunities for 2019."
Robert E. Hoeweler, Chairman of the Board, added, "The Company found itself well-positioned
during 2018 to take advantage of opportunities in the markets in which we operate. Our profitable growth is a direct result
of the talent, determination and success driven nature of our management team. We have built a proven team as demonstrated
by the fourth quarter and year-to-date results for 2018. My hat is off to the entire team."
Overview of Results
Net income (loss) for the three months ended December 31, 2018 totaled $1.3 million and increased $1.6 million compared to a net loss of ($299,000) for the three months ended December 31, 2017. Net income
(loss) attributable to common stockholders for the three months ended December 31, 2018, totaled
$1.4 million, or $0.33 per diluted common share, and increased
$1.7 million compared to a net loss attributable to common stockholders of ($322,000), or ($0.08) per diluted common share, for the three months ended
December 31, 2017. Effective January 1, 2018, the federal
corporate tax rate was reduced to 21%, which resulted in a decrease in the Company's income tax expense in 2018 as compared to
2017. In addition, in the fourth quarter of 2017 the Company revaluated its existing deferred tax asset (DTA) to reflect
the impact of the new tax rates, which resulted in the Company recording an additional tax expense in the amount of $979,000 during the quarter ended December 31, 2017.
Net income for the year ended December 31, 2018 totaled $4.3
million and increased $3.0 million, or 217.5%, compared to net income of $1.3 million for the year ended December 31, 2017. Net income attributable
to common stockholders for the year ended December 31, 2018, totaled $4.3
million or $1.00 per diluted common share, and increased $3.7
million, compared to net income attributable to common stockholders of $680,000, or
$0.19 per diluted common share, for the year ended December 31,
2017. As discussed above, the Tax Cuts and Jobs Act reduced the corporate tax rate to 21% effective January 1, 2018, and the Company revalued its existing deferred tax asset resulting in the Company recording an
additional tax expense during the fourth quarter of 2017.
Net interest income. Net interest income totaled $4.9 million for the
quarter ended December 31, 2018 and increased $1.2 million, or 33.7%,
compared to $3.7 million for the quarter ended December 31,
2017. The increase in net interest income was primarily due to a $2.5 million, or 52.9%,
increase in interest income, partially offset by a $1.3 million, or 119.7%, increase in interest
expense. The increase in interest income was primarily attributed to a $149.5 million, or
34.3%, increase in average interest-earning assets outstanding, resulting primarily from an increase in net loans, and a 61bps
increase in average yield on interest-earning assets. The increase in interest expense was primarily attributed to a
$129.9 million, or 38.8%, increase in average interest-bearing liabilities and a 74bps increase in
the average cost of funds on interest-bearing liabilities. As a result, the net interest margin of 3.38% for the quarter
ended December 31, 2018 decreased 2bps compared to the net interest margin of 3.40% for the quarter
ended December 31, 2017.
Net interest income totaled $17.9 million for the year ended December 31,
2018 and increased $4.2 million, or 30.8%, compared to $13.7
million for the year ended December 31, 2017. The increase in net interest income was
primarily due to a $7.7 million, or 44.6%, increase in interest income, partially offset by a
$3.5 million, or 98.0%, increase in interest expense. The increase in interest income was
primarily attributed to a $119.4 million, or 29.5%, increase in average interest-earning assets
outstanding, resulting primarily from an increase in net loans and a 50bp increase in average yield on interest-earning
assets. The increase in interest expense was primarily attributed to a $98.2 million, or
31.6%, increase in average interest-bearing liabilities and a 57bps increase in the average cost of funds on interest-bearing
liabilities. As a result, the net interest margin of 3.41% for the year ended December 31,
2018 increased 3bps compared to the net interest margin of 3.38% for the year ended December 31,
2017.
Provision for loan and lease losses. There was no provision for loan and lease losses for the quarters
or years ended December 31, 2018 and December 31, 2017, which is due
to strong credit quality, favorable trends in certain qualitative factors and net recoveries. Net recoveries for the year
ended December 31, 2018 totaled $42,000, compared to net recoveries
of $45,000 for the year ended December 31, 2017.
Noninterest income. Noninterest income for the quarter ended December 31, 2018 totaled $860,000 and increased $655,000, or 319.5%, compared to $205,000 for the quarter ended December 31, 2017. The increase was primarily due to a $654,000 increase in
net gain on sale of loans. The increase in net gain on sale of loans was a result of increased sales volume due to the
expansion of the residential mortgage lending business.
Noninterest income for the year ended December 31, 2018 totaled $2.7 million and increased $2.0 million, or 265.6%, compared to
$743,000 for the year ended December 31, 2017. The increase was
primarily due to a $1.9 million increase in net gain on sale of loans and an $82,000 increase in service charges on deposit accounts. The increase in net gain on sale of loans was a
result of increased sales volume due to the expansion of the residential mortgage lending business. The increase in service
charges on deposit accounts was related to increased account relationships and pricing.
Noninterest expense. Noninterest expense for the quarter ended December 31, 2018 totaled $4.2 million and increased $1.3
million, or 43.4%, compared to $2.9 million for the quarter ended December 31, 2017. The increase in noninterest expense during the three months ended December 31, 2018 was primarily due to a $549,000 increase in salaries and
employee benefits expense and a $332,000 increase in advertising and marketing expense, The
increase in salaries and employee benefits expense was primarily due to the expansion of our residential mortgage lending
business, consistent with our focus on driving noninterest income, coupled with an increase in personnel to support our growth,
infrastructure and risk management practices. The increase in advertising and marketing expense is primarily due to
increased expenditures related to the expansion of our residential mortgage lending business, coupled with increased advertising
focused on increasing core deposits.
Noninterest expense for the year ended December 31, 2018 totaled $15.3
million and increased $4.3 million, or 39.4%, compared to $11.0
million for the year ended December 31, 2017. The increase in noninterest expense
during the year ended December 31, 2018 was primarily due to a $2.1
million increase in salaries and employee benefits expense and a $1.2 million increase in
advertising and marketing expense. As discussed above, the increase in salaries and employee benefits expense was primarily
due to the expansion of our residential mortgage lending business along with an increase in personnel to support our
growth. The increase in salaries and employee benefits also resulted from the increase in personnel associated with the
opening of our Glendale branch in the Cincinnati market.
The increase in advertising and marketing expense is primarily due to increased expenditures related to the expansion of our
residential mortgage lending business, coupled with increased advertising focused on increasing core deposits.
Income tax expense. Income tax expense was $353,000 for the quarter
ended December 31, 2018, a decrease of $952,000 compared to
$1.3 million for the quarter ended December 31, 2017. The
decrease was primarily due to the Company recording an additional tax expense of $979,000 during
the fourth quarter of 2017 due to a revaluation of the Company's deferred tax asset and the reduction of the federal corporate
tax rate to 21%, effective January 1, 2018, pursuant to the Tax Cuts and Jobs Act, which was partially offset by an increase
in earnings. As a result, the effective tax rate for the quarter ended December 31, 2018 decreased
to approximately 21.4%, as compared to approximately 129.7% for the quarter ended December 31,
2017.
Income tax expense was $1.1 million for the year ended December 31,
2018, a decrease of $1.0 million compared to $2.1 million for
the year ended December 31, 2017. The decrease was primarily due to the Company recording an
additional tax expense of $979,000 during the fourth quarter of 2017 due to a revaluation of the
Company's deferred tax asset and the reduction of the federal corporate tax rate to 21%, effective January 1, 2018, pursuant
to the Tax Cuts and Jobs Act, which was partially offset by an increase in earnings. As a result, the effective tax rate
for the year ended December 31, 2018 decreased to approximately 19.8%, as compared to approximately
61.1% for the year ended December 31, 2017.
Balance Sheet Activity
General. Assets totaled $665.0 million at December 31, 2018 and increased $183.6 million, or 38.1%, from $481.4 million at December 31, 2017. The increase was primarily due to a $144.3 million increase in net loan balances, a $21.8 million increase
in cash and cash equivalents, and a $16.3 million increase in loans held for sale.
Cash and cash equivalents. Cash and cash equivalents totaled $67.3 million at December 31, 2018, and increased $21.8 million, or 47.9%, from $45.5 million at December 31,
2017. The increase in cash and cash equivalents was primarily attributed to increased deposits.
Securities. Securities available for sale totaled $10.1 million at
December 31, 2018, and decreased $1.7 million, or 14.1%, compared to
$11.8 million at December 31, 2017. The decrease was primarily due to principal
maturities.
Loans and Leases. Net loans and leases totaled $550.7 million at
December 31, 2018, and increased $144.3 million, or 35.5%, from
$406.4 million at December 31, 2017. The increase was primarily due to a
$61.6 million increase in commercial real estate loan balances, a $24.9
million increase in commercial loan balances, a $22.8 million increase in single-family loan
balances, and an $18.9 million increase in construction loan balances. The increases in the
aforementioned loan balances were primarily due to increased sales activity and new relationships. Single-family
residential mortgage loan balances increased due to the purchase of residential mortgage loan-pools and organic growth in the
residential mortgage portfolio due to sales activity.
Allowance for loan and lease losses (ALLL). The allowance for loan and lease losses totaled
$7.0 million at December 31, 2018, and increased $42,000, or 0.6%, from $7.0 million at December 31, 2017. The
increase in the ALLL is due to net recoveries during the year ended December 31, 2018. The
ratio of the ALLL to total loans was 1.26% at December 31, 2018, compared to 1.69% at
December 31, 2017. In addition, the ratio of the ALLL to nonperforming loans was 1859.9% at December 31, 2018, compared to 1483.0% at December 31, 2017.
Deposits. Deposits totaled $579.8 million at December 31, 2018, an increase of $160.8 million, or 38.4%, from $419.0 million at December 31, 2017. The increase is primarily attributed
to a $91.4 million increase in certificate of deposit account balances and a $56.0 million increase in checking account balances. The increase in certificate of deposit account
balances was primarily attributed to a combination of management's use of CDARs (1-way) deposits in anticipation of quarter end
fluctuations associated with our residential mortgage business and the timing of loan fundings, an increase in core certificate
of deposits due to on-going sales and marketing activities, and to a lesser extent, the use of brokered CDs for longer term
duration in its certificate of deposit portfolio. The increase in checking accounts is due to an increase in customer
relationships and balances from on-going sales activities.
Stockholders' equity. Stockholders' equity totaled $45.6 million at December 31, 2018, an increase of $5.3 million, or 13.2%, from $40.3 million at December 31,
2017. The increase in total stockholders' equity was primarily attributed to net income.
About Central Federal Corporation and CFBank
Central Federal Corporation is a financial holding company that owns 100% of the stock of CFBank, National Association
(CFBank), which was formed in Ohio in 1892 and converted from a federal savings association to a
national bank on December 1, 2016. CFBank has a branch presence in four major metro Ohio
markets – Columbus, Cleveland, Cincinnati and Akron markets – as well as its two branch locations in
Columbiana County, Ohio. Additionally, in February 2018,
CFBank opened an additional loan production office in Columbus, Ohio in Franklin County.
CFBank provides personalized Business Banking products and services including commercial loans and leases, commercial and
residential real estate loans and treasury management depository services. As a full service commercial bank, our business,
along with our products and services, is focused on serving the banking and financial needs of closely held businesses. Our
business model emphasizes personalized service, customer access to decision makers, quick execution, and the convenience of
online internet banking, mobile banking, remote deposit and corporate treasury management. In addition, CFBank provides
residential lending and full service retail banking services and products.
Additional information about the Company and CFBank is available at www.CFBankOnline.com
FORWARD LOOKING STATEMENTS
This earnings 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 Central Federal Corporation or CFBank, National Association; (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, those detailed from time
to time in our reports filed with the SEC, including those identified in "Item 1A. Risk Factors" of Part I of our Form 10-K
filed with SEC for the year ended December 31, 2017.
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 earnings 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.
|
Consolidated Statements of Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in thousands, except share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited)
|
Three months ended
|
|
|
|
Year Ended
|
|
|
|
December 31,
|
|
|
|
December 31,
|
|
|
|
2018
|
|
2017
|
|
% change
|
|
2018
|
|
2017
|
|
% change
|
|
Total interest income
|
$
|
7,294
|
|
$
|
4,769
|
|
53%
|
|
$
|
24,886
|
|
$
|
17,207
|
|
45%
|
|
Total interest expense
|
|
2,346
|
|
|
1,068
|
|
120%
|
|
|
6,997
|
|
|
3,534
|
|
98%
|
|
Net interest income
|
|
4,948
|
|
|
3,701
|
|
34%
|
|
|
17,889
|
|
|
13,673
|
|
31%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for loan and lease losses
|
|
-
|
|
|
-
|
|
n/m
|
|
|
-
|
|
|
-
|
|
n/m
|
|
Net interest income after provision for loan and lease
losses
|
|
4,948
|
|
|
3,701
|
|
34%
|
|
|
17,889
|
|
|
13,673
|
|
31%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts
|
|
127
|
|
|
119
|
|
7%
|
|
|
491
|
|
|
409
|
|
20%
|
|
Net gain on sales of loans
|
|
659
|
|
|
5
|
|
13080%
|
|
|
1,927
|
|
|
75
|
|
2469%
|
|
Other
|
|
74
|
|
|
81
|
|
-9%
|
|
|
298
|
|
|
259
|
|
15%
|
|
Noninterest income
|
|
860
|
|
|
205
|
|
320%
|
|
|
2,716
|
|
|
743
|
|
266%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits
|
|
2,173
|
|
|
1,624
|
|
34%
|
|
|
8,199
|
|
|
6,074
|
|
35%
|
|
Occupancy and equipment
|
|
219
|
|
|
168
|
|
30%
|
|
|
792
|
|
|
671
|
|
18%
|
|
Data processing
|
|
294
|
|
|
220
|
|
34%
|
|
|
1,027
|
|
|
995
|
|
3%
|
|
Franchise and other taxes
|
|
37
|
|
|
102
|
|
-64%
|
|
|
345
|
|
|
366
|
|
-6%
|
|
Professional fees
|
|
413
|
|
|
294
|
|
40%
|
|
|
1,275
|
|
|
988
|
|
29%
|
|
Director fees
|
|
112
|
|
|
94
|
|
19%
|
|
|
413
|
|
|
312
|
|
32%
|
|
Postage, printing and supplies
|
|
44
|
|
|
37
|
|
19%
|
|
|
189
|
|
|
175
|
|
8%
|
|
Advertising and marketing
|
|
389
|
|
|
57
|
|
582%
|
|
|
1,393
|
|
|
154
|
|
805%
|
|
Telephone
|
|
45
|
|
|
29
|
|
55%
|
|
|
158
|
|
|
118
|
|
34%
|
|
Loan expenses
|
|
44
|
|
|
46
|
|
-4%
|
|
|
116
|
|
|
170
|
|
-32%
|
|
Foreclosed assets, net
|
|
6
|
|
|
-
|
|
n/m
|
|
|
6
|
|
|
18
|
|
-67%
|
|
Depreciation
|
|
60
|
|
|
58
|
|
3%
|
|
|
248
|
|
|
208
|
|
19%
|
|
FDIC premiums
|
|
157
|
|
|
61
|
|
157%
|
|
|
485
|
|
|
282
|
|
72%
|
|
Regulatory assessment
|
|
43
|
|
|
32
|
|
34%
|
|
|
146
|
|
|
127
|
|
15%
|
|
Other insurance
|
|
23
|
|
|
22
|
|
5%
|
|
|
86
|
|
|
92
|
|
-7%
|
|
Other
|
|
100
|
|
|
56
|
|
79%
|
|
|
397
|
|
|
205
|
|
94%
|
|
Noninterest expense
|
|
4,159
|
|
|
2,900
|
|
43%
|
|
|
15,275
|
|
|
10,955
|
|
39%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
1,649
|
|
|
1,006
|
|
64%
|
|
|
5,330
|
|
|
3,461
|
|
54%
|
|
Income tax expense
|
|
353
|
|
|
1,305
|
|
-73%
|
|
|
1,057
|
|
|
2,115
|
|
-50%
|
|
Net Income (loss)
|
$
|
1,296
|
|
$
|
(299)
|
|
n/m
|
|
$
|
4,273
|
|
$
|
1,346
|
|
217%
|
|
Dividends on Series B preferred stock, accretion of
discount and value of warrants exercised
|
|
126
|
|
|
(23)
|
|
n/m
|
|
|
62
|
|
|
(666)
|
|
n/m
|
|
Net Income (loss) attributable to common stockholders
|
$
|
1,422
|
|
$
|
(322)
|
|
n/m
|
|
$
|
4,335
|
|
$
|
680
|
|
538%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss) per common share (1)
|
$
|
0.33
|
|
$
|
(0.08)
|
|
|
|
$
|
1.02
|
|
$
|
0.21
|
|
|
|
Diluted earnings (loss) per common share (1)
|
$
|
0.33
|
|
$
|
(0.08)
|
|
|
|
$
|
1.00
|
|
$
|
0.19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average common shares outstanding - basic (1)
|
|
4,298,649
|
|
|
4,144,793
|
|
|
|
|
4,260,617
|
|
|
3,259,662
|
|
|
|
Average common shares outstanding - diluted (1)
|
|
4,349,707
|
|
|
4,144,793
|
|
|
|
|
4,343,730
|
|
|
3,506,609
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
n/m - not meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Adjusted to reflect the 1-for-5.5 reverse stock split
effected on August 20, 2018
|
|
|
|
|
|
|
|
|
|
|
Consolidated Statements of Financial Condition
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At or for the three months ended
|
|
|
($ in thousands)
|
Dec 31,
|
|
Sept 30,
|
|
Jun 30,
|
|
Mar 31,
|
|
Dec 31,
|
|
|
(unaudited)
|
2018
|
|
2018
|
|
2018
|
|
2018
|
|
2017
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
$
|
67,304
|
|
$
|
59,368
|
|
$
|
32,739
|
|
$
|
70,396
|
|
$
|
45,498
|
|
|
Interest-bearing deposits in other financial institutions
|
|
100
|
|
|
100
|
|
|
100
|
|
|
100
|
|
|
100
|
|
|
Securities available for sale
|
|
10,114
|
|
|
11,064
|
|
|
11,614
|
|
|
11,185
|
|
|
11,773
|
|
|
Loans held for sale
|
|
17,385
|
|
|
24,079
|
|
|
26,424
|
|
|
8,863
|
|
|
1,124
|
|
|
Loans and leases
|
|
557,695
|
|
|
500,534
|
|
|
477,538
|
|
|
429,471
|
|
|
413,376
|
|
|
Less allowance for loan and lease losses
|
|
(7,012)
|
|
|
(7,005)
|
|
|
(6,981)
|
|
|
(6,976)
|
|
|
(6,970)
|
|
|
Loans and leases, net
|
|
550,683
|
|
|
493,529
|
|
|
470,557
|
|
|
422,495
|
|
|
406,406
|
|
|
FHLB and FRB stock
|
|
3,476
|
|
|
3,476
|
|
|
3,251
|
|
|
3,251
|
|
|
3,227
|
|
|
Foreclosed assets, net
|
|
38
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
Premises and equipment, net
|
|
3,864
|
|
|
3,723
|
|
|
3,678
|
|
|
3,584
|
|
|
3,533
|
|
|
Bank owned life insurance
|
|
5,203
|
|
|
5,168
|
|
|
5,133
|
|
|
5,098
|
|
|
5,065
|
|
|
Accrued interest receivable and other assets
|
|
6,858
|
|
|
5,872
|
|
|
5,433
|
|
|
4,955
|
|
|
4,699
|
|
|
Total assets
|
$
|
665,025
|
|
$
|
606,379
|
|
$
|
558,929
|
|
$
|
529,927
|
|
$
|
481,425
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest bearing
|
$
|
111,445
|
|
$
|
91,083
|
|
$
|
99,579
|
|
$
|
91,359
|
|
$
|
89,588
|
|
|
Interest bearing
|
|
468,341
|
|
|
440,979
|
|
|
388,546
|
|
|
369,686
|
|
|
329,440
|
|
|
Total
deposits
|
|
579,786
|
|
|
532,062
|
|
|
488,125
|
|
|
461,045
|
|
|
419,028
|
|
|
FHLB advances and other debt
|
|
19,500
|
|
|
21,500
|
|
|
19,500
|
|
|
19,500
|
|
|
13,500
|
|
|
Advances by borrowers for taxes and insurance
|
|
827
|
|
|
449
|
|
|
225
|
|
|
236
|
|
|
489
|
|
|
Accrued interest payable and other liabilities
|
|
4,586
|
|
|
3,626
|
|
|
3,480
|
|
|
2,889
|
|
|
2,992
|
|
|
Subordinated debentures
|
|
14,767
|
|
|
5,155
|
|
|
5,155
|
|
|
5,155
|
|
|
5,155
|
|
|
Total
liabilities
|
|
619,466
|
|
|
562,792
|
|
|
516,485
|
|
|
488,825
|
|
|
441,164
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity
|
|
45,559
|
|
|
43,587
|
|
|
42,444
|
|
|
41,102
|
|
|
40,261
|
|
|
Total liabilities and stockholders' equity
|
$
|
665,025
|
|
$
|
606,379
|
|
$
|
558,929
|
|
$
|
529,927
|
|
$
|
481,425
|
|
|
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)
|
|
2018
|
|
2018
|
|
2018
|
|
2018
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
Earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
|
$
|
4,948
|
|
$
|
4,683
|
|
$
|
4,347
|
|
$
|
3,911
|
|
$
|
3,701
|
|
$
|
17,889
|
|
$
|
13,673
|
|
Provision for loan and lease losses
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
Noninterest income
|
|
$
|
860
|
|
$
|
643
|
|
$
|
732
|
|
$
|
481
|
|
$
|
205
|
|
$
|
2,716
|
|
$
|
743
|
|
Noninterest expense
|
|
$
|
4,159
|
|
$
|
4,032
|
|
$
|
3,670
|
|
$
|
3,414
|
|
$
|
2,900
|
|
$
|
15,275
|
|
$
|
10,955
|
|
Net Income (loss)
|
|
$
|
1,296
|
|
$
|
1,055
|
|
$
|
1,130
|
|
$
|
792
|
|
$
|
(299)
|
|
$
|
4,273
|
|
$
|
1,346
|
|
Dividends on Series B preferred stock,
accretion of discount and value of
warrants exercised
|
|
$
|
126
|
|
$
|
(26)
|
|
$
|
(12)
|
|
$
|
(26)
|
|
$
|
(23)
|
|
$
|
62
|
|
$
|
(666)
|
|
Net income (loss) attributable to
common stockholders
|
|
$
|
1,422
|
|
$
|
1,029
|
|
$
|
1,118
|
|
$
|
766
|
|
$
|
(322)
|
|
$
|
4,335
|
|
$
|
680
|
|
Basic earnings (loss) per common
share (2)
|
|
$
|
0.33
|
|
$
|
0.24
|
|
$
|
0.26
|
|
$
|
0.18
|
|
$
|
(0.08)
|
|
$
|
1.02
|
|
$
|
0.21
|
|
Diluted earnings (loss) per common
share (2)
|
|
$
|
0.33
|
|
$
|
0.24
|
|
$
|
0.25
|
|
$
|
0.17
|
|
$
|
(0.08)
|
|
$
|
1.00
|
|
$
|
0.19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance Ratios (annualized)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets
|
|
|
0.84%
|
|
|
0.74%
|
|
|
0.85%
|
|
|
0.66%
|
|
|
(0.26%)
|
|
|
0.78%
|
|
|
0.31%
|
|
Return on average equity
|
|
|
11.74%
|
|
|
9.85%
|
|
|
10.88%
|
|
|
7.83%
|
|
|
(2.94%)
|
|
|
10.11%
|
|
|
3.36%
|
|
Average yield on interest-earning
assets
|
|
|
4.99%
|
|
|
4.85%
|
|
|
4.63%
|
|
|
4.45%
|
|
|
4.38%
|
|
|
4.75%
|
|
|
4.25%
|
|
Average rate paid on interest-bearing
liabilities
|
|
|
2.02%
|
|
|
1.81%
|
|
|
1.57%
|
|
|
1.34%
|
|
|
1.28%
|
|
|
1.71%
|
|
|
1.14%
|
|
Average interest rate spread
|
|
|
2.97%
|
|
|
3.04%
|
|
|
3.06%
|
|
|
3.11%
|
|
|
3.10%
|
|
|
3.04%
|
|
|
3.11%
|
|
Net interest margin, fully taxable
equivalent
|
|
|
3.38%
|
|
|
3.43%
|
|
|
3.43%
|
|
|
3.41%
|
|
|
3.40%
|
|
|
3.41%
|
|
|
3.38%
|
|
Efficiency ratio
|
|
|
71.61%
|
|
|
75.70%
|
|
|
72.26%
|
|
|
77.73%
|
|
|
74.24%
|
|
|
74.13%
|
|
|
75.99%
|
|
Noninterest expense to average assets
|
|
|
2.71%
|
|
|
2.82%
|
|
|
2.76%
|
|
|
2.82%
|
|
|
2.51%
|
|
|
2.78%
|
|
|
2.54%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 capital leverage ratio (1)
|
|
|
10.13%
|
|
|
9.41%
|
|
|
9.56%
|
|
|
10.21%
|
|
|
9.37%
|
|
|
10.13%
|
|
|
9.37%
|
|
Total risk-based capital ratio (1)
|
|
|
12.37%
|
|
|
12.05%
|
|
|
11.97%
|
|
|
13.05%
|
|
|
11.91%
|
|
|
12.37%
|
|
|
11.91%
|
|
Tier 1 risk-based capital ratio (1)
|
|
|
11.12%
|
|
|
10.80%
|
|
|
10.71%
|
|
|
11.80%
|
|
|
10.65%
|
|
|
11.12%
|
|
|
10.65%
|
|
Common equity tier 1 capital to risk
weighted assets (1)
|
|
|
11.12%
|
|
|
10.80%
|
|
|
10.71%
|
|
|
11.80%
|
|
|
10.65%
|
|
|
11.12%
|
|
|
10.65%
|
|
Equity to total assets at end of period
|
|
|
6.85%
|
|
|
7.19%
|
|
|
7.59%
|
|
|
7.76%
|
|
|
8.36%
|
|
|
6.85%
|
|
|
8.36%
|
|
Book value per common share (2)
|
|
$
|
10.51
|
|
$
|
10.25
|
|
$
|
9.98
|
|
$
|
9.70
|
|
$
|
9.48
|
|
$
|
10.51
|
|
$
|
9.48
|
|
Tangible book value per common share (2)
|
|
$
|
10.51
|
|
$
|
10.25
|
|
$
|
9.98
|
|
$
|
9.70
|
|
$
|
9.48
|
|
$
|
10.51
|
|
$
|
9.48
|
|
Period-end market value per common
share (2)
|
|
$
|
11.69
|
|
$
|
15.50
|
|
$
|
13.20
|
|
$
|
12.76
|
|
$
|
15.13
|
|
$
|
11.69
|
|
$
|
15.13
|
|
Period-end common shares outstanding (2)
|
|
|
4,335,062
|
|
|
4,251,956
|
|
|
4,251,766
|
|
|
4,239,190
|
|
|
4,245,384
|
|
|
4,335,062
|
|
|
4,245,384
|
|
Average basic common shares
outstanding (2)
|
|
|
4,298,649
|
|
|
4,251,820
|
|
|
4,248,573
|
|
|
4,242,911
|
|
|
4,144,793
|
|
|
4,260,617
|
|
|
3,259,662
|
|
Average diluted common shares
outstanding (2)
|
|
|
4,349,707
|
|
|
4,367,222
|
|
|
4,488,339
|
|
|
4,489,469
|
|
|
4,144,793
|
|
|
4,343,730
|
|
|
3,506,609
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans
|
|
$
|
377
|
|
$
|
377
|
|
$
|
388
|
|
$
|
400
|
|
$
|
470
|
|
$
|
377
|
|
$
|
470
|
|
Nonperforming loans to total loans
|
|
|
0.07%
|
|
|
0.08%
|
|
|
0.08%
|
|
|
0.09%
|
|
|
0.11%
|
|
|
0.07%
|
|
|
0.11%
|
|
Nonperforming assets to total assets
|
|
|
0.06%
|
|
|
0.06%
|
|
|
0.07%
|
|
|
0.08%
|
|
|
0.10%
|
|
|
0.06%
|
|
|
0.10%
|
|
Allowance for loan and lease losses to
total loans
|
|
|
1.26%
|
|
|
1.40%
|
|
|
1.46%
|
|
|
1.62%
|
|
|
1.69%
|
|
|
1.26%
|
|
|
1.69%
|
|
Allowance for loan and lease losses to
nonperforming loans
|
|
|
1859.95%
|
|
|
1858.09%
|
|
|
1799.23%
|
|
|
1744.00%
|
|
|
1482.98%
|
|
|
1859.95%
|
|
|
1482.98%
|
|
Net charge-offs (recoveries)
|
|
$
|
(7)
|
|
$
|
(24)
|
|
$
|
(5)
|
|
$
|
(6)
|
|
$
|
(6)
|
|
$
|
(42)
|
|
$
|
(45)
|
|
Annualized net charge-offs
(recoveries) to average loans
|
|
|
(0.01%)
|
|
|
(0.02%)
|
|
|
(0.00%)
|
|
|
(0.01%)
|
|
|
(0.01%)
|
|
|
(0.01%)
|
|
|
(0.01%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Balances
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
$
|
525,483
|
|
$
|
486,215
|
|
$
|
448,153
|
|
$
|
415,262
|
|
$
|
389,208
|
|
$
|
468,778
|
|
$
|
363,254
|
|
Assets
|
|
$
|
613,903
|
|
$
|
571,415
|
|
$
|
531,353
|
|
$
|
483,637
|
|
$
|
461,945
|
|
$
|
550,077
|
|
$
|
431,269
|
|
Stockholders' equity
|
|
$
|
44,146
|
|
$
|
42,830
|
|
$
|
41,536
|
|
$
|
40,478
|
|
$
|
40,747
|
|
$
|
42,247
|
|
$
|
40,029
|
|
|
(1) Regulatory capital ratios of CFBank
|
|
(2) Adjusted to reflect the 1-for-5.5 reverse stock split effected on
August 20, 2018
|
View original content:http://www.prnewswire.com/news-releases/central-federal-corporation-announces-4th-quarter-and-2018-financial-results-300797899.html
SOURCE Central Federal Corporation