CF BANKSHARES INC., PARENT OF CFBANK NA, REPORTS RESULTS FOR THE 3rd QUARTER 2026.

COLUMBUS, Ohio, Oct. 27, 2026 /PRNewswire/ -- CF Bankshares Inc. (NASDAQ: CFBK) (the "Company"), the parent of CFBank, National Association ("CFBank"), today announced financial results for the third quarter ended September 30, 2026.

Third Quarter 2026 Highlights

• Net income for Q3 2026 was $6.0 million ($0.91 per diluted common share), which included $551,000 of Provision expense.  Pre-provision, pre-tax net revenue (PPNR) for Q3 2026 was $7.9 million.
• Return on Average Equity (ROE) was 12.22% for Q3 2026, while Return on Average Assets (ROA) was 1.14%.
• Net Interest Margin (NIM) was 2.96%, an increase of 3bps when compared to the prior quarter and an increase of 20bps when compared to Q3 2025.
• Commercial Loan Fundings of $79 million in Q3, resulting in Net Commercial Loan growth of $42 million for the quarter.  Year-to-date commercial loan fundings have totaled $357 million with $129 million in Net Commercial Loan growth.
• Customer Fees, including Treasury Management products and services increased $71,000, or 8%, when compared to the prior quarter and have increased $660,000, or 32% year-to-date in 2026 when compared to the same period in 2025.
• Book value per share increased to $29.83 as of September 30, 2026, representing a 10.5% increase year-over-year.
• CFBank's capital position remains strong with a Tier 1 Leverage Ratio of 11.99% and a Total Capital Ratio of 14.69%.

Recent Developments

• On October 1, 2026, the Company's Board of Directors declared a cash dividend of $0.09 per share on its Common Stock. The dividend was paid on October 20, 2026 to shareholders of record as of the close of business on October 12, 2026.

CEO and Board Chair Commentary

Timothy T. O'Dell, President and CEO, commented, "We had strong net income of $6.0 million for the third quarter, which was net of $551,000 of provision expense. Return on Equity (ROE) topped 12% at 12.22%, while our NIM expanded by 3 bps to 2.96%.

Ongoing Investments particularly with building our Commercial Banking Teams and expanding our Regional Metro Markets presence, are producing increasing Commercial Business banking opportunities throughout the Five (5) metro Marketplaces we serve in Ohio and Indiana. 

As an example, our Commercial Banking Team has generated over $350 million in total new Commercial Loan Fundings year-to-date. Our Pipelines of Commercial Banking Loan and Deposits remain strong entering the fourth quarter. As our new producers fully hit their strides, we expect our business generation results and Team capabilities will continue to grow and expand. 

Customer Fees, driven predominantly by Treasury Management Fees for Services, also have increased 32% year-to-date, up 8% compared to the prior quarterly results. 

During 2026, we have expanded considerably the size and depth of our Commercial Banking Team, which we believe will continue to fuel increasing quality Commercial growth opportunities, along with improving business mix through capturing greater numbers of full-service Banking (C&I) relationships. 

Additionally, we are gaining traction with expanding our Private Banking Customers & Product offerings to closely held business owners and entrepreneurs. 

Also, we are investing in Mortgage Lending, mostly through adding high performing Mortgage Loan Originators along with Regional Sales Leaders, capable of building Local and Regionally based Mortgage Lending Teams. 

Looking ahead, we expect our rate of Growth to continue accelerating. As we deploy more available capital to work into Loan relationships, we see enhanced Earnings growth opportunity. 

Our Best is Yet Ahead!"

Robert E. Hoeweler, Chairman of the Board, added, "Our team has been able to perform at the highest level in very trying economic times. The results of the 3^rd quarter reflect the quality of the Management team we have been able to attract and keep. Our marching orders are to continue our profitable growth and build shareholder value. I wholehearted agree 'Our Best is Yet Ahead'!"

Overview of Results 

Net income for the three months ended September 30, 2026 totaled $6.0 million (or $0.91 per diluted common share) compared to net income of $5.9 million (or $0.90 per diluted common share) for the three months ended June 30, 2026 and net income of $2.3 million (or $0.36 per diluted common share) for the three months ended September 30, 2025.  PPNR for the three months ended September 30, 2026 was $7.9 million compared to PPNR of $8.2 million for the three months ended June 30, 2026 and PPNR of $7.8 million for the three months ended September 30, 2025.

Net income for the nine months ended September 30, 2026 totaled $17.0 million (or $2.59 per diluted common share) compared to net income of $11.8 million (or $1.81 per diluted common share) for the nine months ended September 30, 2025. PPNR for the nine months ended September 30, 2026 was $22.6 million compared to PPNR of $21.8 million for the nine months ended September 30, 2025.

Net Interest Income and Net Interest Margin

Net interest income totaled $14.9 million for the quarter ended September 30, 2026 and increased $105,000, or 0.7%, compared to $14.8 million for the prior quarter, and increased $1.1 million, or 8.4%, compared to $13.8 million for the third quarter of 2025.

The increase in net interest income compared to the prior quarter was primarily due to a $92,000, or 0.3%, increase in interest income, coupled with a $13,000, or 0.1%, decrease in interest expense. The increase in interest income was primarily attributed to a $37.4 million, or 2.1%, increase in average loans and leases, coupled with a 5bps increase in the average yield on interest-earning assets. The decrease in interest expense when compared to the prior quarter was attributed to a 7bps decrease in the average rate on interest-bearing liabilities, partially offset by a $26.8 million, or 1.7%, increase in average interest-bearing liabilities. The net interest margin of 2.96% for the quarter ended September 30, 2026 increased 3bps compared to the net interest margin of 2.93% for the prior quarter.

The increase in net interest income compared to the third quarter of 2025 was primarily due to a $1.4 million, or 8.5%, decrease in interest expense, partially offset by a $255,000, or 0.8%, decrease in interest income.  The decrease in interest expense was primarily attributed to a 40bps decrease in the average rate on interest-bearing liabilities, partially offset by a $20.5 million, or 1.3%, increase in average interest-bearing liabilities. The decrease in interest income was primarily attributed to a 11bps decrease in the average yield on interest-earning assets, partially offset by a $17.7 million, or 0.9%, increase in average interest-earning assets outstanding. The net interest margin of 2.96% for the quarter ended September 30, 2026 increased 20bps compared to the net interest margin of 2.76% for the third quarter of 2025.

Noninterest Income

Noninterest income for the three months ended September 30, 2026 totaled $1.8 million and increased $58,000, or 3.4%, compared to $1.7 million for the prior quarter and increased $41,000, or 2.4%, compared to $1.7 million for the three months ended September 30, 2025.

The following table represents the notional amount of loans sold during the three months ended September 30, 2026, June 30, 2026, and September 30, 2025 (in thousands).

Noninterest Expense

Noninterest expense for the quarter ended September 30, 2026 totaled $8.8 million and increased $426,000, or 5.1%, compared to $8.3 million for the prior quarter, and increased $1.1 million, or 13.4%, compared to $7.7 million for the quarter ended September 30, 2025.  The increase in noninterest expense when compared to the prior quarter was driven by a $264,000 increase in recruiting expenses related to the expansion of our Commercial Banking Teams across our Regional Markets.  During the third quarter, one-time expenses included $111,000 in signing bonuses and $198,000 in recruiting fees.

The increase in noninterest expense when compared to the third quarter of 2025 was driven by a $751,000 increase in salaries and benefits, which was driven by the expansion of our Commercial Banking Teams across our Regional Markets.

Income Tax Expense

Income tax expense was $1.4 million for the quarter ended September 30, 2026 (effective tax rate of 18.4%), compared to $1.4 million for the prior quarter (effective tax rate of 18.6%) and $373,000 for the quarter ended September 30, 2025 (effective tax rate of 13.8%).

Loans and Leases

Gross loans and leases totaled $1.9 billion at September 30, 2026 and increased $39.3 million, or 2.2%, from the prior quarter and increased $100.8 million, or 5.7%, from December 31, 2025.  The increase in loans and leases balances from the prior quarter was primarily due to a $31.9 million increase in commercial real estate loan balances, an $11.4 million increase in construction loan balances, and a $1.0 million increase in consumer loan balances, partially offset by a $4.1 million decrease in single-family residential loan balances and a $932,000 decrease in commercial and industrial (C&I) loan balances.

The increase in loans and leases balances when compared to December 31, 2025 was primarily due to a $101.9 million increase in commercial real estate loan balances, a $17.5 million increase in construction loan balances, and a $9.4 million increase in C&I loan balances, partially offset by a $25.5 million decrease in single-family residential loan balances and a $2.5 million decrease in consumer loan balances.

The following table presents the principal balance outstanding of loans and leases for certain non-owner-occupied loan types (in thousands).

* 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 $20.4 million, or 1.10% of total loans, at September 30, 2026, a decrease of $478,000 from $20.8 million at June 30, 2026 and an increase of $5.0 million from $15.3 million at December 31, 2025.  The increase in nonperforming loans when compared to December 31, 2025 included the addition of one non-core (non-customer) C&I loan for $5.0 million. Of the $20.4 million of nonaccrual loans at September 30, 2026, $4.8 million was guaranteed by the SBA.

Loans 30 days or more past due totaled $30.8 million at September 30, 2026, compared to $20.4 million at June 30, 2026 and $12.9 million at December 31, 2025. The increase in loans 30 days or more past due when compared to the previous quarter was primarily due to a $6.7 million C&I loan and a $5.9 million commercial real estate loan (one relationship). Subsequent to quarter end, both of these loans were brought current.

The allowance for credit losses on loans and leases totaled $19.0 million at September 30, 2026, compared to $19.4 million at June 30, 2026 and $17.7 million at December 31, 2025.  The ratio of the allowance for credit losses on loans and leases to total loans and leases was 1.03% at September 30, 2026 compared to 1.07% at June 30, 2026 and 1.01% at December 31, 2025. 

There was $551,000 in provision for credit losses expense for the quarter ended September 30, 2026, compared to $944,000 for the quarter ended June 30, 2026 and $5.1 million for the quarter ended September 30, 2025.  Net charge-offs for the quarter ended September 30, 2026 totaled $966,000, compared to net recoveries of $106,000 for the prior quarter and net charge-offs of $7.1 million for the quarter ended September 30, 2025. Net charge-offs during the quarter ended September 30, 2026 were attributed to credits that had already been identified and fully reserved in previous quarters.  As a result, these charge-offs had no impact on third quarter 2026 provision expense.

Deposits

Deposits totaled $1.9 billion at September 30, 2026, an increase of $28.5 million, or 1.6%, from June 30, 2026, and an increase of $76.5 million, or 4.3%, from December 31, 2025.  The increase when compared to the prior quarter was primarily due to a $29.5 million increase in interest-bearing account balances, partially offset by a $922,000 decrease in noninterest-bearing account balances.  The increase when compared to December 31, 2025 was primarily due to a $89.3 million increase in interest-bearing account balances, partially offset by a $12.8 million decrease in noninterest-bearing accounts balances.

At September 30, 2026, approximately 31.2% of our deposit balances exceeded the FDIC insurance limit of $250,000, as compared to approximately 32.0% at June 30, 2026 and approximately 29.5% at December 31, 2025.

Borrowings

FHLB advances and other debt totaled $99.2 million at September 30, 2026 and June 30, 2026 and $101.0 million at December 31, 2025.

Capital

Stockholders' equity totaled $199.5 million at September 30, 2026, an increase of $5.2 million, or 2.7%, when compared to $194.3 million at June 30, 2026, and an increase of $15.1 million, or 8.2%, from $184.4 million at December 31, 2025. The increase in total stockholders' equity during the three months ended September 30, 2026 was primarily attributed to net income, partially offset by $588,000 in dividend payments.

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"). Non-GAAP financial measures included in this earnings release include Pre-Provision, Pre-Tax Net Revenue (PPNR). PPNR is defined as net interest income plus total non-interest income, excluding net gains and losses, minus total non-interest expense. This measure is a non-GAAP financial measure because it excludes the provision for (recovery of) credit losses and all gains and losses included in net income.  Management uses this "non-GAAP" financial measure in its analysis of the Company's performance and believes that this non-GAAP financial measure provides a greater understanding of ongoing operations and enhances comparability of results with prior periods and peers.  

Disclosures of non-GAAP financial measures 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.  A reconciliation of this non-GAAP financial measure to the most directly comparable GAAP financial measure 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 bank holding company that owns 100% of the stock of CFBank, National Association ("CFBank"). CFBank is a nationally chartered boutique Commercial bank operating primarily in Five (5) Major Metro Markets: Columbus, Cleveland, Cincinnati, and Akron 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.

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.

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 the 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, including, without limitation, those 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, 2025.

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.