WORTHINGTON, Ohio, Aug. 10, 2016 /PRNewswire/ -- Central
Federal Corporation (NASDAQ: CFBK) (the "Company") announced that
net income for the three months ended June
30, 2016 totaled $422,000 and
decreased $45,000, or 9.6%, compared
to net income of $467,000 for the
three months ended June 30,
2015. The decrease in net income was due to a $204,000 increase in income tax expense, a
$174,000 decrease in noninterest
income and a $85,000 increase in
provision expense, which was partially offset by a $379,000 increase in net interest income and a
$39,000 decrease in noninterest
expense.
The Company reversed its deferred tax valuation allowance during
the fourth quarter of 2015, and thus has recorded income tax
expense starting in 2016. On a comparable basis, income before
income tax expense was $626,000 for
the three months ended June 30, 2016
and increased $159,000, or 34.0%,
compared to $467,000 for the three
months ended June 30, 2015.
Net income attributable to common stockholders for the three
months ended June 30, 2016, totaled
$207,000, or $0.01 per diluted common share, and decreased
$45,000, or 17.9%, compared to net
income attributable to common stockholders of $252,000, or $0.02
per diluted common share, for the three months ended June 30, 2015. For the three months ended
June 30, 2016 and 2015, preferred
dividends on the Company's Series B Preferred Stock and accretion
of discount reduced net income attributable to common stockholders
by $215,000 for each period,
respectively.
Net income for the six months ended June
30, 2016 totaled $738,000 and
increased $20,000, or 2.8%, compared
to net income of $718,000 for the six
months ended June 30, 2015. The
increase in net income was due to a $609,000 increase in net interest income and a
$50,000 decrease in noninterest
expense, partially offset by a $354,000 increase in income tax expense, a
$225,000 decrease in noninterest
income, and a $60,000 increase in
provision expense.
As indicated above, the Company reversed its deferred tax
valuation allowance during the fourth quarter of 2015, and thus has
recorded income tax expense starting in 2016. On a comparable
basis, income before income tax expense was $1.1 million for the six months ended
June 30, 2016 and increased
$374,000, or 52.1%, compared to
$718,000 for the six months ended
June 30, 2015.
Net income attributable to common stockholders for the six
months ended June 30, 2016, totaled
$309,000, or $0.02 per diluted common share, and increased
$20,000, or 6.9%, compared to net
income attributable to common stockholders of $289,000, or $0.02
per diluted common share, for the six months ended June 30, 2015. For the six months ended
June 30, 2016 and 2015, preferred
dividends on the Company's Series B Preferred Stock and accretion
of discount reduced net income attributable to common stockholders
by $429,000.
Timothy T. O'Dell, President and
CEO, commented, "We are pleased with our Team's success converting
our loan pipelines into quality loan relationships. This
translates into increasing net interest income, our primary driver
of earnings."
Overview of Results
Net interest income. Net interest income
totaled $2.8 million for the quarter
ended June 30, 2016 and increased
$379,000, or 15.4%, compared to
$2.5 million for the quarter ended
June 30, 2015. The increase in
net interest income was primarily due to a $457,000, or 14.7%, increase in interest income,
partially offset by a $78,000, or
11.9%, increase in interest expense. The increase in interest
income was primarily attributed to a $27.5
million, or 9.0%, increase in average interest-earning
assets outstanding and a 21bps increase in average yield on
interest-earning assets. The increase in interest expense was
primarily attributed to a $16.9
million, or 6.5%, increase in average interest-bearing
liabilities outstanding and a 5bps increase in the average cost of
funds on interest-bearing liabilities. As a result, net
interest margin of 3.41% for the quarter ended June 30, 2016 increased 19bps compared to the net
interest margin of 3.22% for the quarter ended June 30, 2015.
Net interest income totaled $5.5
million for the six months ended June
30, 2016 and increased $609,000, or 12.4%, compared to $4.9 million for the six months ended
June 30, 2015. The increase in
net interest income was primarily due to a $797,000, or 13.0%, increase in interest income,
partially offset by a $188,000, or
15.2%, increase in interest expense. The increase in interest
income was primarily attributed to a $29.6
million, or 9.9%, increase in average interest-earning
assets outstanding and a 12bps increase in average yield on
interest-earning assets. The increase in interest expense was
primarily attributed to a $18.8
million, or 7.4%, increase in average interest-bearing
liabilities outstanding and a 7bps increase in the average cost of
funds on interest-bearing liabilities. As a result, net
interest margin of 3.35% for the six months ended June 30, 2016 increased 7bps compared to the net
interest margin of 3.28% for the six months ended June 30, 2015.
Robert E. Hoeweler, Chairman of
the Board, added, "Our fundamentals remain strong with solid loan
growth and business pipelines coupled with strong credit
quality."
Provision for loan losses. The provision for
loan losses totaled $160,000 for the
quarter ended June 30, 2016 and
increased $85,000, or 113.3%,
compared to $75,000 for the quarter
ended June 30, 2015. The
increase in the provision for loan losses for the quarter ended
June 30, 2016 was primarily due to
increased loan growth and net charge-offs, which was partially
offset by a continual decrease in the majority of historical loss
rates and favorable trends in certain qualitative factors.
Net charge-offs for the quarter ended June
30, 2016 totaled $263,000
compared to net charge-offs of $37,000 for the quarter ended June 30, 2015. The ratio of the ALLL to
nonperforming loans improved to 473.4% as of June 30, 2016.
The provision for loan losses totaled $210,000 for the six months ended June 30, 2016 and increased $60,000, or 40.0%, compared to $150,000 for the six months ended June 30, 2015. The increase in the
provision for loan losses for the six months ended June 30, 2016 was primarily due to increased loan
growth and net charge-offs, which was partially offset by a
continual decrease in the majority of historical loss rates and
favorable trends in certain qualitative factors. Net
charge-offs for the six months ended June
30, 2016 totaled $217,000
compared to net-recoveries of $14,000
for the six months ended June 30,
2015. The ratio of the ALLL to nonperforming loans improved
to 473.4% as of June 30, 2016.
Noninterest income. Noninterest income for
the quarter ended June 30, 2016
totaled $290,000 and decreased
$174,000, or 37.5%, compared to
$464,000 for the quarter ended
June 30, 2015. The decrease was
primarily due to a $186,000 decrease
in net gains on sales of loans and a $70,000 decrease in other noninterest income,
partially offset by a $82,000
increase in service charges on deposit accounts. The decrease
in net gain on sales of loans was primarily due to an SBA loan sale
that occurred during the second quarter of 2015. The decrease
in other noninterest income was related to decreased activity
related to the Company's joint ventures. The increase in
service charges on deposit accounts was related to increased
pricing, deposit growth and account relationships.
Noninterest income for the six months ended June 30, 2016 totaled $594,000 and decreased $225,000, or 27.5%, compared to $819,000 for the six months ended June 30, 2015. The decrease was primarily due to
a $242,000 decrease in net gains on
sales of loans, and a $134,000
decrease in other noninterest income, partially offset by a
$139,000 increase in service charges
on deposit accounts. The decrease in the net gains on sales
of loans was primarily due to a SBA loan sale during the second
quarter of 2015 and lower residential sales activity. The
decrease in other noninterest income was related to decreased
activity related to the Company's joint ventures. The
increase in service charges on deposit accounts was related to
increased pricing, deposit growth and account relationships.
Noninterest expense. Noninterest expense
decreased $39,000, or 1.6%, and
totaled $2.3 million for the quarter
ended June 30, 2016, compared to
$2.4 million for the quarter ended
June 30, 2015. The decrease in
noninterest expense during the three months ended June 30, 2016 was primarily due to a $83,000 decrease in FDIC premiums, a $42,000 decrease in salaries and employee
benefits expense and a $27,000
decrease in advertising and promotion expense, which was partially
offset by a $98,000 increase in
professional fees. The decrease in FDIC premiums was due to
lower assessment factors charged based on CFBank's improved
performance. The decrease in salaries and employee benefits
was due to fewer full-time-equivalent employees as a result of the
timing of certain positions in the process of being filled.
The decrease in advertising and promotion expense was related to
less marketing and advertising. The increase in professional
fees was due to increases in recruiting fees, legal expense related
to loan workouts, and information technology consulting
projects.
Noninterest expense decreased $50,000, or 1.0%, and totaled $4.8 million for the six months ended
June 30, 2016, compared to
$4.8 million for the six months ended
June 30, 2015. The decrease in
noninterest expense during the six months ended June 30, 2016 was primarily due to a $110,000 decrease in salaries and employee
benefits expense, a $73,000 decrease
in FDIC premiums, and a $55,000
decrease in advertising and promotion expense, partially offset by
a $178,000 increase in professional
fees. The decrease in salaries and employee benefits was due
to fewer full-time-equivalent employees as a result of the timing
of certain positions in the process of being filled. The
decrease in FDIC premiums was due to lower assessment factors
charged based on CFBank's improved performance. The decrease
in advertising and promotion expense was related to less marketing
and advertising. The increase in professional fees was due to
increases in recruiting fees, legal expense related to loan
workouts, and information technology consulting projects.
Income tax expense. Income tax expense was
$204,000 for the three months ended
June 30, 2016, an increase of
$204,000 compared to $0 for the three months ended June 30, 2015. As of June 30, 2015, the Company maintained a valuation
allowance against the net deferred tax asset which reduced the
deferred tax asset to zero; thus, no income tax expense was
recorded for the quarter ended June
30, 2015. With the reversal of the deferred tax
valuation allowance as of December 31,
2015, the Company is now recording income tax expense based
on the federal statutory rate adjusted for the effect of bank owned
life insurance and other miscellaneous items. The effective
tax rate for the quarter ended June 30,
2016, was approximately 32.6% which management believes is a
reasonable estimate for the effective tax rate.
Income tax expense was $354,000
for the six months ended June 30,
2016, an increase of $354,000
compared to $0 for the six months
ended June 30, 2015. As of
June 30, 2015, the Company maintained
a valuation allowance against the net deferred tax asset which
reduced the deferred tax asset to zero; thus, no income tax expense
was recorded for the six months ended June
30, 2015. With the reversal of the deferred tax
valuation allowance as of December 31,
2015, the Company is now recording income tax expense based
on the federal statutory rate adjusted for the effect of other
items such as incentive stock option expense, bank owned life
insurance, and other miscellaneous items. The effective tax
rate for the six months ended June 30,
2016, was approximately 32.4% which management believes is a
reasonable estimate for the effective tax rate.
Balance Sheet Activity
General. Assets totaled $364.8 million at June 30,
2016 and increased $13.5
million, or 3.8%, from $351.3
million at December 31,
2015. The increase was primarily due to a $27.3 million increase in net loan balances,
partially offset by a $12.9 million
decrease in cash and cash equivalents.
Cash and cash equivalents. Cash and
cash equivalents totaled $13.0
million at June 30, 2016 and
decreased $12.9 million, or 49.8%,
from $25.9 million at December 31, 2015. The decrease in cash and
cash equivalents was primarily due to the use of cash to fund loan
growth.
Securities. Securities available for sale totaled
$9.3 million at June 30, 2016 and decreased $39,000, or 0.4%, from $9.4 million at December
31, 2015.
Loans. Net loans totaled $324.4 million at June 30,
2016 and increased $27.3
million, or 9.2%, from $297.1
million at December 31,
2015. The increase was primarily due to a $15.0 million increase in commercial loan
balances, a $9.9 million increase in
single-family residential loans balances, a $6.2 million increase in commercial real estate
loan balances, and a $4.0 million
increase in multi-family loan balances, partially offset by a
$4.3 million decrease in construction
loan balances, and a $3.5 million
decrease in total consumer loan balances. The increase in
commercial loan balances, single-family residential, commercial
real estate and multi-family loans was due to increased sales
activity. The decrease in construction loan balances was
primarily attributed to the completion of projects.
Allowance for loan losses (ALLL). The ALLL
totaled $6.6 million at June 30, 2016 and decreased $7,000, or 0.1%, from $6.6
million at December 31,
2015. The decrease in the ALLL was primarily due to a
decrease in historical loss rates and favorable trends in
qualitative factors, which was partially offset by the provision
for loan growth and net charge-offs for the quarter. The
ratio of the ALLL to total loans was 2.00% at June 30, 2016 compared to 2.18% at December 31, 2015. In addition, the ratio
of the ALLL to nonperforming loans was 473.4% at June 30, 2016, compared to 464.6% at December 31, 2015.
Foreclosed assets. Foreclosed assets
totaled $0 at June 30, 2016 compared to $1.6 million at December
31, 2015. Foreclosed assets at December 31, 2015 consisted of one multi-family
property that was transferred into REO at fair value at the time of
transfer in 2013. This property was subsequently sold during
the second quarter of 2016.
Deposits. Deposits totaled $296.0 million at June 30,
2016 and increased $5.6
million, or 1.9%, from $290.5
million at December 31,
2015. The increase was primarily attributed to a $6.0 million increase in money market account
balances and a $3.6 million increase
in certificates of deposits, partially offset by a $6.6 million decrease in checking account
balances. The majority of the deposit increase was a result
of management's focused sales and marketing efforts to grow
deposits to fund loan growth.
Stockholders' equity. Stockholders'
equity totaled $38.8 million at
June 30, 2016, an increase of
$482,000, or 1.3%, from $38.3 million at December
31, 2015. The increase in total stockholders' equity
was primarily attributed to net income, which was partially offset
by the dividends paid on the Company's Series B Preferred Stock
during the six months ended June 30,
2016.
In May 2016, the Company announced
that its Board of Directors has adopted a stock repurchase program
pursuant to which the Company may repurchase up to 3% of the
Company's common stock over the next six months. Any
purchases under the repurchase program will be made from time to
time in the open market in accordance with applicable federal and
state securities laws and regulations. The timing and amount
of any stock repurchases will be determined by the Company's
management based on its evaluation of market conditions, regulatory
requirements and other corporate considerations. During the
quarter ended June 30, 2016, the
Company repurchased 20,500 shares of common stock for an aggregate
purchase price of $29,000. The
20,500 shares of repurchased common stock are held by the Company
as treasury stock.
About Central Federal Corporation and CFBank
Central Federal Corporation is the holding company for CFBank, a
federally chartered savings association formed in Ohio in 1892. CFBank has four
full-service banking offices in Fairlawn, Calcutta, Wellsville and Worthington, Ohio and a loan production office
in Woodmere, Ohio (Cuyahoga County). Additional information
about CFBank's banking services and the Company is available at
www.CFBankOnline.com
FORWARD LOOKING STATEMENTS
Statements in this earnings release that are not statements of
historical fact are forward-looking statements 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 (the Holding 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. The following factors could cause
such differences:
- changes in economic and political conditions could adversely
affect our earnings through declines in deposits, loan demand, the
ability of our customers to repay loans and the value of the
collateral securing our loans;
- changes in interest rates that may reduce net interest margin
and impact funding sources;
- the possibility that we will need to make increased provisions
for loan losses;
- our ability to maintain sufficient liquidity to continue to
fund our operations;
- our ability to reduce our high level of nonperforming assets
and the associated operating expenses;
- changes in market rates and prices, including real estate
values, which may adversely impact the value of financial products
including securities, loans and deposits;
- the possibility of other-than-temporary impairment of
securities held in our securities portfolio;
- results of examinations of the Holding Company and CFBank by
the regulators, including the possibility that the regulators may,
among other things, require CFBank to increase its allowance for
loan losses or write-down assets;
- our ability to continue to meet regulatory requirements and
guidelines to which we are subject;
- our ability to generate profits in the future;
- our ability to raise additional capital in the future, if
necessary;
- changes in tax laws, rules and regulations;
- increases in deposit insurance rates or premiums;
- further legislative and regulatory changes which may increase
compliance costs and burdens;
- unexpected losses of key management;
- various monetary and fiscal policies and regulations, including
those determined by the Board of Governors of the Federal Reserve
System, the Federal Deposit Insurance Corporation and the Office of
the Comptroller of the Currency;
- competition with other local and regional commercial banks,
savings banks, credit unions and other non-bank financial
institutions;
- our ability to grow our core businesses;
- our ability to effectively manage our growth;
- any failure, interruption or breach in security of our
communications and information systems;
- technological factors which may affect our operations, pricing,
products and services;
- unanticipated litigation, claims or assessments; and
- Management's ability to manage these and other risks.
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. The Company believes it has 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
report speak only as of the date of the report. 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.
Our filings with the Securities and Exchange Commission detail
other risks, all of which are difficult to predict and many of
which are beyond our control.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Statements of Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in thousands,
except share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited)
|
Three months
ended
|
|
|
|
Six months
ended
|
|
|
|
June
30,
|
|
|
|
June
30,
|
|
|
|
2016
|
|
2015
|
|
%
change
|
|
2016
|
|
2015
|
|
%
change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest
income
|
$
|
3,570
|
|
$
|
3,113
|
|
15%
|
|
$
|
6,928
|
|
$
|
6,131
|
|
13%
|
Total interest
expense
|
|
735
|
|
|
657
|
|
12%
|
|
|
1,427
|
|
|
1,239
|
|
15%
|
Net interest
income
|
|
2,835
|
|
|
2,456
|
|
15%
|
|
|
5,501
|
|
|
4,892
|
|
12%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for loan
losses
|
|
160
|
|
|
75
|
|
113%
|
|
|
210
|
|
|
150
|
|
40%
|
Net interest income
after provision for loan losses
|
|
2,675
|
|
|
2,381
|
|
12%
|
|
|
5,291
|
|
|
4,742
|
|
12%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service
charges on deposit accounts
|
|
198
|
|
|
116
|
|
71%
|
|
|
371
|
|
|
232
|
|
60%
|
Net gain
on sales of loans
|
|
23
|
|
|
209
|
|
-89%
|
|
|
51
|
|
|
293
|
|
-83%
|
Net gain
on sale of securities
|
|
-
|
|
|
-
|
|
n/m
|
|
|
-
|
|
|
(12)
|
|
n/m
|
Other
|
|
69
|
|
|
139
|
|
-50%
|
|
|
172
|
|
|
306
|
|
-44%
|
Noninterest
income
|
|
290
|
|
|
464
|
|
-38%
|
|
|
594
|
|
|
819
|
|
-27%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries
and employee benefits
|
|
1,175
|
|
|
1,217
|
|
-3%
|
|
|
2,327
|
|
|
2,437
|
|
-5%
|
Occupancy and equipment
|
|
149
|
|
|
134
|
|
11%
|
|
|
283
|
|
|
273
|
|
4%
|
Data
processing
|
|
267
|
|
|
268
|
|
0%
|
|
|
542
|
|
|
517
|
|
5%
|
Franchise and other taxes
|
|
88
|
|
|
81
|
|
9%
|
|
|
176
|
|
|
161
|
|
9%
|
Professional fees
|
|
300
|
|
|
202
|
|
49%
|
|
|
624
|
|
|
446
|
|
40%
|
Director
fees
|
|
58
|
|
|
33
|
|
76%
|
|
|
105
|
|
|
66
|
|
59%
|
Postage,
printing and supplies
|
|
41
|
|
|
58
|
|
-29%
|
|
|
95
|
|
|
130
|
|
-27%
|
Advertising and promotion
|
|
18
|
|
|
45
|
|
-60%
|
|
|
35
|
|
|
90
|
|
-61%
|
Telephone
|
|
27
|
|
|
31
|
|
-13%
|
|
|
58
|
|
|
56
|
|
4%
|
Loan
expenses
|
|
12
|
|
|
6
|
|
100%
|
|
|
43
|
|
|
43
|
|
0%
|
Foreclosed assets, net
|
|
16
|
|
|
28
|
|
-43%
|
|
|
49
|
|
|
74
|
|
-34%
|
Depreciation
|
|
54
|
|
|
52
|
|
4%
|
|
|
107
|
|
|
104
|
|
3%
|
FDIC
premiums
|
|
20
|
|
|
103
|
|
-81%
|
|
|
134
|
|
|
207
|
|
-35%
|
Regulatory assessment
|
|
28
|
|
|
47
|
|
-40%
|
|
|
56
|
|
|
98
|
|
-43%
|
Other
insurance
|
|
27
|
|
|
31
|
|
-13%
|
|
|
58
|
|
|
61
|
|
-5%
|
Other
|
|
59
|
|
|
42
|
|
40%
|
|
|
101
|
|
|
80
|
|
26%
|
Noninterest
expense
|
|
2,339
|
|
|
2,378
|
|
-2%
|
|
|
4,793
|
|
|
4,843
|
|
-1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
626
|
|
|
467
|
|
34%
|
|
|
1,092
|
|
|
718
|
|
52%
|
Income tax
expense
|
|
204
|
|
|
-
|
|
n/m
|
|
|
354
|
|
|
-
|
|
n/m
|
Net Income
|
$
|
422
|
|
$
|
467
|
|
-10%
|
|
$
|
738
|
|
$
|
718
|
|
3%
|
Dividends on Series B
preferred stock and accretion of discount
|
|
(215)
|
|
|
(215)
|
|
0%
|
|
|
(429)
|
|
|
(429)
|
|
0%
|
Earnings attributable
to common stockholders
|
$
|
207
|
|
$
|
252
|
|
-18%
|
|
$
|
309
|
|
$
|
289
|
|
7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss)
per common share
|
$
|
0.01
|
|
$
|
0.02
|
|
|
|
$
|
0.02
|
|
$
|
0.02
|
|
|
Diluted earnings
(loss) per common share
|
$
|
0.01
|
|
$
|
0.02
|
|
|
|
$
|
0.02
|
|
$
|
0.02
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average common shares
outstanding - basic
|
|
16,017,997
|
|
|
15,823,710
|
|
|
|
|
16,021,103
|
|
|
15,823,710
|
|
|
Average common shares
outstanding - diluted
|
|
16,028,990
|
|
|
15,836,192
|
|
|
|
|
16,029,576
|
|
|
15,833,673
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
n/m - not
meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Statements of Financial Condition
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At or for the
three months ended
|
|
($ in
thousands)
|
Jun
30,
|
|
Mar
31,
|
|
Dec
31,
|
|
Sept
30,
|
|
Jun
30,
|
|
(unaudited)
|
2016
|
|
2016
|
|
2015
|
|
2015
|
|
2015
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
13,007
|
|
$
|
24,779
|
|
$
|
25,895
|
|
$
|
20,101
|
|
$
|
28,293
|
|
Interest-bearing
deposits in other financial institutions
|
|
100
|
|
|
-
|
|
|
-
|
|
|
494
|
|
|
494
|
|
Securities available
for sale
|
|
9,329
|
|
|
9,372
|
|
|
9,368
|
|
|
11,573
|
|
|
9,135
|
|
Loans held for
sale
|
|
2,736
|
|
|
1,598
|
|
|
889
|
|
|
673
|
|
|
1,992
|
|
Loans
|
|
330,977
|
|
|
307,195
|
|
|
303,684
|
|
|
289,956
|
|
|
290,640
|
|
Less allowance
for loan losses
|
|
(6,613)
|
|
|
(6,716)
|
|
|
(6,620)
|
|
|
(6,522)
|
|
|
(6,480)
|
|
Loans, net
|
|
324,364
|
|
|
300,479
|
|
|
297,064
|
|
|
283,434
|
|
|
284,160
|
|
FHLB stock
|
|
1,942
|
|
|
1,942
|
|
|
1,942
|
|
|
1,942
|
|
|
1,942
|
|
Foreclosed assets,
net
|
|
-
|
|
|
1,636
|
|
|
1,636
|
|
|
1,636
|
|
|
1,636
|
|
Premises and
equipment, net
|
|
3,530
|
|
|
3,561
|
|
|
3,609
|
|
|
3,657
|
|
|
3,691
|
|
Bank owned life
insurance
|
|
4,863
|
|
|
4,830
|
|
|
4,797
|
|
|
4,763
|
|
|
4,730
|
|
Accrued interest
receivable and other assets
|
|
4,882
|
|
|
5,154
|
|
|
6,093
|
|
|
3,169
|
|
|
3,240
|
|
Total
assets
|
$
|
364,753
|
|
$
|
353,351
|
|
$
|
351,293
|
|
$
|
331,442
|
|
$
|
339,313
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
bearing
|
$
|
37,182
|
|
$
|
37,266
|
|
$
|
42,926
|
|
$
|
29,664
|
|
$
|
31,549
|
|
Interest bearing
|
|
258,846
|
|
|
255,168
|
|
|
247,541
|
|
|
244,150
|
|
|
250,500
|
|
Total deposits
|
|
296,028
|
|
|
292,434
|
|
|
290,467
|
|
|
273,814
|
|
|
282,049
|
|
FHLB
advances
|
|
22,500
|
|
|
14,500
|
|
|
14,500
|
|
|
14,500
|
|
|
14,500
|
|
Advances by borrowers
for taxes and insurance
|
|
198
|
|
|
353
|
|
|
656
|
|
|
311
|
|
|
280
|
|
Accrued interest
payable and other liabilities
|
|
2,078
|
|
|
2,369
|
|
|
2,203
|
|
|
2,537
|
|
|
2,383
|
|
Subordinated
debentures
|
|
5,155
|
|
|
5,155
|
|
|
5,155
|
|
|
5,155
|
|
|
5,155
|
|
Total liabilities
|
|
325,959
|
|
|
314,811
|
|
|
312,981
|
|
|
296,317
|
|
|
304,367
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity
|
|
38,794
|
|
|
38,540
|
|
|
38,312
|
|
|
35,125
|
|
|
34,946
|
|
Total liabilities and
stockholders' equity
|
$
|
364,753
|
|
$
|
353,351
|
|
$
|
351,293
|
|
$
|
331,442
|
|
$
|
339,313
|
|
Consolidated
Financial Highlights
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At or for the
three months ended
|
|
At or for the six
months ended
|
($ in thousands
except per share data)
|
|
Jun
30,
|
|
Mar
31,
|
|
Dec
31,
|
|
Sept
30,
|
|
Jun
30,
|
|
|
June
30,
|
(unaudited)
|
|
2016
|
|
2016
|
|
2015
|
|
2015
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
(loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
$
|
2,835
|
|
$
|
2,666
|
|
$
|
2,451
|
|
$
|
2,454
|
|
$
|
2,456
|
|
$
|
5,501
|
|
$
|
4,892
|
Provision for loan
losses
|
|
$
|
160
|
|
$
|
50
|
|
$
|
50
|
|
$
|
50
|
|
$
|
75
|
|
$
|
210
|
|
$
|
150
|
Noninterest
income
|
|
$
|
290
|
|
$
|
304
|
|
$
|
205
|
|
$
|
324
|
|
$
|
464
|
|
$
|
594
|
|
$
|
819
|
Noninterest
expense
|
|
$
|
2,339
|
|
$
|
2,454
|
|
$
|
2,370
|
|
$
|
2,398
|
|
$
|
2,378
|
|
$
|
4,793
|
|
$
|
4,843
|
Net Income (loss)
(1)
|
|
$
|
422
|
|
$
|
316
|
|
$
|
3,429
|
|
$
|
330
|
|
$
|
467
|
|
$
|
738
|
|
$
|
718
|
Dividends on Series B
preferred stock and accretion of discount
|
|
$
|
(215)
|
|
$
|
(214)
|
|
$
|
(214)
|
|
$
|
(214)
|
|
$
|
(215)
|
|
$
|
(429)
|
|
$
|
(429)
|
Earnings (loss)
available to common stockholders
|
|
$
|
207
|
|
$
|
102
|
|
$
|
3,215
|
|
$
|
116
|
|
$
|
252
|
|
$
|
309
|
|
$
|
289
|
Basic earnings (loss)
per common share
|
|
$
|
0.01
|
|
$
|
0.01
|
|
$
|
0.20
|
|
$
|
0.01
|
|
$
|
0.02
|
|
$
|
0.02
|
|
$
|
0.02
|
Diluted earnings
(loss) per common share
|
|
$
|
0.01
|
|
$
|
0.01
|
|
$
|
0.15
|
|
$
|
0.01
|
|
$
|
0.02
|
|
$
|
0.02
|
|
$
|
0.02
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance Ratios
(annualized)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets
|
|
|
0.47%
|
|
|
0.36%
|
|
|
4.06%
|
|
|
0.40%
|
|
|
0.57%
|
|
|
0.42%
|
|
|
0.45%
|
Return on average
equity
|
|
|
4.37%
|
|
|
3.29%
|
|
|
39.05%
|
|
|
3.77%
|
|
|
5.37%
|
|
|
3.83%
|
|
|
4.14%
|
Average yield on
interest-earning assets
|
|
|
4.29%
|
|
|
4.14%
|
|
|
4.00%
|
|
|
4.06%
|
|
|
4.08%
|
|
|
4.22%
|
|
|
4.10%
|
Average rate paid on
interest-bearing liabilities
|
|
|
1.06%
|
|
|
1.03%
|
|
|
1.03%
|
|
|
1.03%
|
|
|
1.01%
|
|
|
1.04%
|
|
|
0.97%
|
Average interest rate
spread
|
|
|
3.23%
|
|
|
3.11%
|
|
|
2.97%
|
|
|
3.03%
|
|
|
3.07%
|
|
|
3.18%
|
|
|
3.13%
|
Net interest margin,
fully taxable equivalent
|
|
|
3.41%
|
|
|
3.29%
|
|
|
3.13%
|
|
|
3.17%
|
|
|
3.22%
|
|
|
3.35%
|
|
|
3.28%
|
Efficiency
ratio
|
|
|
74.85%
|
|
|
82.63%
|
|
|
89.23%
|
|
|
86.32%
|
|
|
81.44%
|
|
|
78.64%
|
|
|
84.62%
|
Noninterest expense
to average assets
|
|
|
2.61%
|
|
|
2.80%
|
|
|
2.80%
|
|
|
2.87%
|
|
|
2.89%
|
|
|
2.71%
|
|
|
3.01%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core capital ratio
(2)
|
|
|
10.92%
|
|
|
10.89%
|
|
|
11.12%
|
|
|
10.82%
|
|
|
10.85%
|
|
|
10.92%
|
|
|
10.85%
|
Total risk-based
capital ratio (2)
|
|
|
13.23%
|
|
|
13.69%
|
|
|
13.67%
|
|
|
13.77%
|
|
|
13.14%
|
|
|
13.23%
|
|
|
13.14%
|
Tier 1 risk-based
capital ratio (2)
|
|
|
11.97%
|
|
|
12.43%
|
|
|
12.40%
|
|
|
12.50%
|
|
|
11.88%
|
|
|
11.97%
|
|
|
11.88%
|
Common equity tier 1
capital to risk weighted assets (2)
|
|
|
11.97%
|
|
|
12.43%
|
|
|
12.40%
|
|
|
12.50%
|
|
|
11.88%
|
|
|
11.97%
|
|
|
11.88%
|
Equity to total
assets at end of period
|
|
|
10.64%
|
|
|
10.91%
|
|
|
10.91%
|
|
|
10.60%
|
|
|
10.30%
|
|
|
10.64%
|
|
|
10.30%
|
Book value per common
share
|
|
$
|
1.67
|
|
$
|
1.66
|
|
$
|
1.64
|
|
$
|
1.46
|
|
$
|
1.45
|
|
$
|
1.67
|
|
$
|
1.45
|
Tangible book value
per common share
|
|
$
|
1.67
|
|
$
|
1.66
|
|
$
|
1.64
|
|
$
|
1.46
|
|
$
|
1.45
|
|
$
|
1.67
|
|
$
|
1.45
|
Period-end market
value per common share
|
|
$
|
1.36
|
|
$
|
1.35
|
|
$
|
1.32
|
|
$
|
1.34
|
|
$
|
1.31
|
|
$
|
1.36
|
|
$
|
1.31
|
Period-end common
shares outstanding
|
|
|
16,003,710
|
|
|
16,024,210
|
|
|
16,024,210
|
|
|
15,823,710
|
|
|
15,823,710
|
|
|
16,003,710
|
|
|
15,823,710
|
Average basic common
shares outstanding
|
|
|
16,017,997
|
|
|
16,024,210
|
|
|
15,957,377
|
|
|
15,823,710
|
|
|
15,823,710
|
|
|
16,021,103
|
|
|
15,823,710
|
Average diluted
common shares outstanding
|
|
|
16,028,990
|
|
|
16,033,988
|
|
|
22,820,088
|
|
|
15,832,106
|
|
|
15,836,192
|
|
|
16,029,576
|
|
|
15,833,673
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset
Quality
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming
loans
|
|
$
|
1,397
|
|
$
|
1,442
|
|
$
|
1,425
|
|
$
|
1,492
|
|
$
|
1,538
|
|
$
|
1,397
|
|
$
|
1,538
|
Nonperforming loans
to total loans
|
|
|
0.42%
|
|
|
0.47%
|
|
|
0.47%
|
|
|
0.51%
|
|
|
0.53%
|
|
|
0.42%
|
|
|
0.53%
|
Nonperforming assets
to total assets
|
|
|
0.38%
|
|
|
0.87%
|
|
|
0.87%
|
|
|
0.94%
|
|
|
0.94%
|
|
|
0.38%
|
|
|
0.94%
|
Allowance for loan
losses to total loans
|
|
|
2.00%
|
|
|
2.19%
|
|
|
2.18%
|
|
|
2.25%
|
|
|
2.23%
|
|
|
2.00%
|
|
|
2.23%
|
Allowance for loan
losses to nonperforming loans
|
|
|
473.37%
|
|
|
465.74%
|
|
|
464.56%
|
|
|
437.13%
|
|
|
421.33%
|
|
|
473.37%
|
|
|
421.33%
|
Net charge-offs
(recoveries)
|
|
$
|
263
|
|
$
|
(46)
|
|
$
|
(48)
|
|
$
|
8
|
|
$
|
37
|
|
$
|
217
|
|
$
|
(14)
|
Annualized net
charge-offs (recoveries) to average loans
|
|
|
0.34%
|
|
|
(0.06%)
|
|
|
(0.07%)
|
|
|
0.01%
|
|
|
0.05%
|
|
|
0.14%
|
|
|
(0.01%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
Balances
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
$
|
313,438
|
|
$
|
298,158
|
|
$
|
280,169
|
|
$
|
280,710
|
|
$
|
276,731
|
|
$
|
305,798
|
|
$
|
269,742
|
Assets
|
|
$
|
358,290
|
|
$
|
349,991
|
|
$
|
338,095
|
|
$
|
334,067
|
|
$
|
329,230
|
|
$
|
354,140
|
|
$
|
322,287
|
Stockholders'
equity
|
|
$
|
38,632
|
|
$
|
38,422
|
|
$
|
35,127
|
|
$
|
35,018
|
|
$
|
34,781
|
|
$
|
38,527
|
|
$
|
34,684
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Net Income for the quarter ended December 31, 2015, includes a $3.2
million credit to income tax expense as a result of the reversal of
a deferred tax valuation allowance that occurred in the fourth
quarter of 2015.
|
(2)
Regulatory capital ratios of CFBank
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/central-federal-corporation-announces-2nd-quarter-2016-results-300311917.html
SOURCE Central Federal Corporation