WORTHINGTON, Ohio, Feb. 21, 2017 /PRNewswire/ -- Central Federal
Corporation (NASDAQ: CFBK) (the "Company") today announced
financial results for the fourth quarter and the year ended
December 31, 2016.
Highlights
- Income before income tax expense was $591,000 for the three months ended December 31, 2016 and increased $355,000, or 150.4%, compared to $236,000 for the three months ended December 31, 2015.
- Income before income tax expense was $2.4 million for the year ended December 31, 2016 and increased $1.1 million, or 89.8%, compared to $1.3 million for the year ended December 31, 2015.
- On an after-tax basis:
- Net income for the three months ended December 31, 2016 totaled $384,000 and decreased $3.0 million, or 88.8%, compared to net income of
$3.4 million for the three months
ended December 31, 2015.
- Net income for the year ended December 31, 2016 totaled $1.6 million and decreased $2.9 million, or 63.7%, compared to net income of
$4.5 million for the year ended
December 31, 2015
*Due to the reversal of the
deferred tax valuation allowance as of December 31, 2015, the Company began recording
income tax expense in 2016, which impacts comparability of net
income (after tax) between periods.
- Net interest income totaled $11.3
million for the year ended December
31, 2016 and increased $1.5
million, or 15.5%, compared to $9.8
million for the year ended December
31, 2015.
- Net loans increased $49.1
million, or 16.5%, to $346.1
million at December 31, 2016,
while total assets increased $84.8
million, or 24.1%, to end the year at $436.1 million.
- Deposits increased $84.9
million, or 29.2%, to $375.4
million at December 31,
2016.
- Credit quality remained strong as of December 31, 2016:
- Total criticized and classified loans decreased by
$3.6 million, or 27.9%, during the
twelve months ended December 31,
2016.
- Nonperforming loans to total loans improved to 0.20% at
December 31, 2016.
- The allowance for loan and lease losses (ALLL) to total
loans was 1.96% at December 31, 2016,
and the ratio of ALLL to nonperforming loans was 983.7%.
The Company's income before income tax expense for the three
months ended December 31, 2016
totaled $591,000 and increased
$355,000, or 150.4%, compared to
income before income tax expense of $236,000 for the three months ended December 31, 2015. The increase in income
before income tax expense was due to a $425,000 increase in net interest income, a
$50,000 decrease in provision expense
and a $28,000 increase in noninterest
income, partially offset by a $148,000 increase in noninterest expense.
The Company reversed its deferred tax valuation allowance during
the fourth quarter of 2015 and began recording income tax expense
in 2016, which impacted the comparability of net income (after tax)
between periods. Net income for the three months ended
December 31, 2016 totaled
$384,000 and decreased $3.0 million, or 88.8%, compared to net income of
$3.4 million for the three months
ended December 31, 2015. The
decrease in net income was primarily due to a $3.4 million increase in income tax expense (due
to the $3.2 million credit to income
tax expense as a result of the reversal of a deferred tax valuation
allowance in 2015 compared to income tax expense of $207,000 for the quarter ended December 31, 2016) and a $148,000 increase in noninterest expense, which
was partially offset by a $425,000
increase in net interest income, a $50,000 decrease in provision expense and a
$28,000 increase in noninterest
income.
Net income attributable to common stockholders for the three
months ended December 31, 2016,
totaled $170,000, or $0.01 per diluted common share, and decreased
$3.0 million, or 94.7%, compared to
net income attributable to common stockholders of $3.2 million, or $0.15 per diluted common share, for the three
months ended December 31, 2015.
For the three months ended December 31,
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 $214,000 for each period.
Income before income tax expense for the twelve months ended
December 31, 2016 totaled
$2.4 million and increased
$1.1 million, or 89.8%, compared to
income before income tax expense of $1.3
million for the twelve months ended December 31, 2015. The increase in income
before income tax expense was due to a $1.5
million increase in net interest income and a $20,000 decrease in provision expense, partially
offset by a $171,000 decrease in
noninterest income a $212,000
increase in noninterest expense.
As previously mentioned, the Company reversed its deferred tax
valuation allowance during the fourth quarter of 2015 and began
recording income tax expense for 2016, which impacted the
comparability of net income (after tax) between periods. Net
income for the twelve months ended December
31, 2016 totaled $1.6 million
and decreased $2.9 million compared
to net income of $4.5 million for the
twelve months ended December 31,
2015. The decrease in net income was primarily due to a
$4.0 million increase in income tax
expense (due to the $3.2 million
credit to income tax expense as a result of the reversal of a
deferred tax valuation allowance in 2015, compared to income tax
expense of $810,000 for the year
ended December 31, 2016) a
$171,000 decrease in other
noninterest income, and a $212,000
increase in noninterest expense, which was partially offset by a
$1.5 million increase in net interest
income, and a $20,000 decrease in
provision expense.
Net income attributable to common stockholders totaled
$770,000, or $0.05 per diluted common share, for the year
ended December 31, 2016, compared to
net income attributable to common stockholders of $3.6 million, or $0.20 per diluted common share, for the year
ended December 31, 2015. For
the years ended December 31, 2016 and
2015, preferred dividends on the Series B Preferred Stock and
accretion of discount reduced net income attributable to common
stockholders by $857,000 for each
period.
Timothy T. O'Dell, President and
CEO, commented, "We remain pleased with our business and earnings
trajectories. The investment in adding three seasoned
commercial lenders, bringing our current total to eight commercial
lenders, is being reflected in increasing loan pipelines.
Also, we are producing encouraging results with the
increasing volumes of commercial and industrial loans. Given
our deposit growth and available capital, we believe that we are
very well positioned to continue with our growth and
expansion."
Overview of Results
Net interest income. Net interest income
totaled $2.9 million for the quarter
ended December 31, 2016 and increased
$425,000, or 17.3%, compared to
$2.5 million for the quarter ended
December 31, 2015. The increase
in net interest income was primarily due to a $612,000, or 19.5%, increase in interest income,
partially offset by a $187,000, or
27.3%, increase in interest expense. The increase in interest
income was primarily attributed to a $83.2
million, or 26.5%, increase in average interest-earning
assets outstanding, partially offset by a 22 bps decrease in
average yield on interest-earning assets. The increase in
interest expense was primarily attributed to a $54.4 million, or 20.5%, increase in average
interest-bearing liabilities outstanding and a 6bps increase in the
average cost of funds on interest-bearing liabilities. As a
result, net interest margin of 2.90% for the quarter ended
December 31, 2016 decreased 23bps
compared to the net interest margin of 3.13% for the quarter ended
December 31, 2015.
Net interest income totaled $11.3
million for the year ended December
31, 2016 and increased $1.5
million, or 15.5%, compared to $9.8
million for the year ended December
31, 2015. The increase in net interest income was
primarily due to a $2.0 million, or
16.2%, increase in interest income, partially offset by a
$488,000, or 18.7%, increase in
interest expense. The increase in interest income was
primarily attributed to a $46.7
million, or 15.3%, increase in average interest-earnings
assets outstanding, and a 3bps increase in average yield on
interest-earning assets. The increase in interest expense was
attributed to a $30.8 million, or
11.8%, increase in average interest-bearing liabilities outstanding
and a 6bps increase in the average cost of funds on
interest-bearing liabilities. Net interest margin was 3.21%
and 3.21% for the years ended December 31,
2016 and December 31, 2015,
respectively.
Robert E. Hoeweler, Chairman of
the Board, added "Our bank is solidly profitable, generating solid
growth of both loans and deposits. In addition, we are well
capitalized with strong credit quality plus have an effective
seasoned Leadership Team. Our business model has proven to
resonate with closely held businesses and entrepreneurs. We
remain highly optimistic about our prospects moving into 2017."
Provision for loan and lease losses. The
provision for loan and lease losses totaled $0 for the quarter ended December 31, 2016 and decreased $50,000, compared to $50,000 for the quarter ended December 31, 2015. The decrease in the
provision for loan and lease losses for the quarter ended
December 31, 2016 was primarily due
to a continued decrease in the majority of historical loss rates,
favorable trends in certain qualitative factors and net recoveries
for the quarter. Net recoveries for the quarter ended
December 31, 2016 totaled
$32,000.
The provision for loan and lease losses totaled $230,000 for the twelve months ended December 31, 2016 and decreased $20,000, or 8.0%, compared to $250,000 for the twelve months ended December 31, 2015. The decrease in the
provision for loan and lease losses for the year ended December 31, 2016 was primarily due to improved
credit quality, a continued decrease in the majority of historical
loss rates and favorable trends in certain qualitative factors and
net recoveries. Net recoveries for the year ended
December 31, 2016 totaled
$75,000 compared to net recoveries of
$54,000 for the year ended
December 31, 2015. The ratio of
the ALLL to nonperforming loans at December
31, 2016 improved to 983.7% compared to 464.6% at
December 31, 2015.
Noninterest income. Noninterest income
for the quarter ended December 31,
2016 totaled $233,000 and
increased $28,000, or 13.7%, compared
to $205,000 for the quarter ended
December 31, 2015. The increase was
primarily due to a $69,000 increase
in net gains on sales of loans, partially offset by a $38,000 decrease in other noninterest
income. The increase in net gain on sales of loans was
primarily due to increased sales activity during the fourth quarter
of 2016 compared to 2015. The decrease in other noninterest
income was related to decreased activity related to the Company's
joint ventures.
Noninterest income for the year ended December 31, 2016 totaled $1.2 million and decreased $171,000, or 12.7%, compared to $1.3 million for the year ended December 31, 2015. The decrease was
primarily due to a $242,000 decrease
in other noninterest income, and a $191,000 decrease in net gains on sales of loans,
partially offset by a $250,000
increase in service charges on deposit accounts. The decrease
in other noninterest income was due to decreased activity related
to the Company's joint ventures. The decrease in the net
gains on sales of loans was primarily due to lower residential
mortgage sales activity. The increase in service charges on
deposit accounts was related to increased pricing, deposit growth
and activity and new account relationships.
Noninterest expense. Noninterest
expense increased $148,000, or 6.2%,
and totaled $2.5 million for the
quarter ended December 31, 2016,
compared to $2.4 million for the
quarter ended December 31,
2015. The increase in noninterest expense during the three
months ended December 31, 2016 was
primarily due to a $206,000 increase
in salaries and employee benefits expense and a $21,000 increase in data processing expense,
which was partially offset by a $76,000 decrease in professional fees. The
increase in salaries and employee benefits was due to an increase
in personnel in commercial lending, operations and information
technology to support revenue growth, infrastructure and risk
management practices. The increase in data processing expense
was primarily due to expanded service capabilities and technology
improvements. The decrease in professional fees was due to
the completion of various consulting projects and other
professional fees related to loan workout activity.
Noninterest expense for the year ended December 31, 2016 totaled $9.8 million and increased $212,000, or 2.2%, compared to the $9.6 million for the year ended December 31, 2015. The overall increase in
operating expenses is primarily attributed to a $212,000 increase in salaries and employee
benefits, a $192,000 increase in
professional, partially offset by $199,000 decrease in FDIC premiums.
Salaries and benefit expenses increased primarily due to an
increase in personnel in the commercial lending, credit
administration, operations and information technology areas.
The increase in professional fees was primarily due to increases in
recruiting fees, general legal expense related to certain one-time
projects and legal expenses related to loan workout activity.
The decrease in FDIC premiums was due to lower assessment factors
charged based on CFBank's improved performance.
Income tax expense. Income tax expense was
$207,000 for the three months ended
December 31, 2016, an increase of
$3.4 million compared to ($3.2) million for the three months ended
December 31, 2015. As of
December 31, 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 December 31, 2015. With the $3.2 million 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 December 31,
2016, was approximately 35.0% which management believes is a
reasonable estimate for the effective tax rate.
Income tax expense totaled $810,000 for year ended December 31, 2016, an increase of $4.0 million compared to a $3.2 million credit to income tax expense for
year ended December 31, 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 year
ended December 31, 2016, was
approximately 33.2% which management believes is a reasonable
estimate for the effective tax rate.
Balance Sheet Activity
General. Assets totaled $436.1 million at December
31, 2016 and increased $84.8
million, or 24.1%, from $351.3
million at December 31,
2015. The increase was primarily due to a $49.1 million increase in net loan balances and a
$32.0 million increase in cash and
cash equivalents.
Cash and cash equivalents. Cash and
cash equivalents totaled $57.9
million at December 31, 2016,
and increased $32.0 million, or
123.8%, from $25.9 million at
December 31, 2015. The increase
in cash and cash equivalents was a result of management's efforts
to increase deposit activity in order to fund anticipated loan
growth and to improve the loan to deposit ratio.
Securities. Securities available for sale
totaled $14.1 million at December 31, 2016, and increased $4.7 million, or 50.1%, compared to $9.4 million at December
31, 2015. The increase was due to $6.0 million in purchases, partially offset by
scheduled maturities and repayments.
Loans and Leases. Net loans totaled
$346.1 million at December 31, 2016, and increased $49.1 million, or 16.5%, from $297.1 million at December
31, 2015. The increase was primarily due to a $27.6 million increase in commercial loan
balances, a $10.6 million increase in
single-family loan balances, a $8.8
million increase in commercial real estate loan balances, a
$5.3 million increase in multi-family
loan balances, and a $1.2 million
increase in construction loan balances, partially offset by a
$4.1 million decrease in total
consumer loan balances. The increase in single-family
residential loan balances was primarily attributed to an increase
in balances associated with our Northpointe mortgage program.
The increase in commercial loan balances, single-family
residential, commercial real estate, multi-family and construction
loans was due to increased sales activity.
Allowance for loan and lease losses (ALLL).
The allowance for loan and lease losses totaled $6.9 million at December
31, 2016, and increased $305,000, or 4.6%, from $6.6 million at December
31, 2015. The increase in the ALLL is due to a
combination of factors including a 16.5% increase in net loan
balances and net recoveries during the twelve months ended
December 31, 2016, which was
partially offset by continued improvement in credit quality and a
50.6% decrease in nonperforming loans. The ratio of the ALLL
to total loans was 1.96% at December 31,
2016, compared to 2.18% at December
31, 2015. In addition, the ratio of the ALLL to
nonperforming loans improved to 983.7% at December 31, 2016, compared to 464.6% at
December 31, 2015.
Foreclosed assets. Foreclosed assets
totaled $204,000 at December 31, 2016 compared to $1.6 million at December
31, 2015. Foreclosed assets at December 31, 2016 consisted of one single-family
residential property that was transferred into REO at fair value in
December 2016. 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. The multi-family property was sold during
the second quarter of 2016.
Deposits. Deposits totaled
$375.4 million at December 31, 2016, an increase of $84.9 million, or 29.2%, from $290.5 million at December
31, 2015. The increase is primarily attributed to a
$29.4 million increase in certificate
of deposit account balances, a $29.0
million increase in checking account balances, and a
$26.5 million increase in money
market account balances. The majority of the deposit increase
was a result of management's focused sales and marketing efforts to
grow core deposits to fund anticipated loan growth and improve the
loan to deposit ratio.
Stockholders' equity. Stockholders' equity
totaled $39.3 million at December 31, 2016, an increase of $980,000, or 2.6%, 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 dividend paid on the Company's Series B Preferred Stock.
Stock Repurchase Program
In May 2016, the Company announced
that its Board of Directors adopted a stock repurchase program
pursuant to which the Company may repurchase up to 3% of the
Company's common stock over the subsequent six-month period.
The Board of Directors subsequently approved the continuation of
this repurchase program for an additional six-month period
commencing November 10, 2016.
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. Since the
commencement of the program, the Company has repurchased 21,300
common shares for an aggregate purchase price of $30,000 as of December
31, 2016. All repurchased shares are held by the
Company as treasury stock.
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
presence in three major metro Ohio
markets – Columbus, Cleveland, and Akron markets – as well as its two locations
in Columbiana County, Ohio.
CFBank provides 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
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 and lease losses;
- our ability to maintain sufficient liquidity to continue to
fund our operations;
- our ability to reduce our 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 and lease 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 if and when necessary
in the future;
- 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;
- further increases in competition from 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
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.
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
|
|
|
|
Year
Ended
|
|
|
|
December
31,
|
|
|
|
December
31,
|
|
|
|
2016
|
|
2015
|
|
%
change
|
|
2016
|
|
2015
|
|
%
change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest
income
|
$
|
3,747
|
|
$
|
3,135
|
|
20%
|
|
$
|
14,409
|
|
$
|
12,405
|
|
16%
|
Total interest
expense
|
|
871
|
|
|
684
|
|
27%
|
|
|
3,096
|
|
|
2,608
|
|
19%
|
Net interest
income
|
|
2,876
|
|
|
2,451
|
|
17%
|
|
|
11,313
|
|
|
9,797
|
|
15%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for loan
and lease losses
|
|
-
|
|
|
50
|
|
-100%
|
|
|
230
|
|
|
250
|
|
-8%
|
Net interest income
after provision for loan and lease losses
|
|
2,876
|
|
|
2,401
|
|
20%
|
|
|
11,083
|
|
|
9,547
|
|
16%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service
charges on deposit accounts
|
|
129
|
|
|
132
|
|
-2%
|
|
|
741
|
|
|
491
|
|
51%
|
Net gain
on sales of loans
|
|
37
|
|
|
(32)
|
|
n/m
|
|
|
134
|
|
|
325
|
|
-59%
|
Net gain
on sale of securities
|
|
-
|
|
|
-
|
|
n/m
|
|
|
-
|
|
|
(12)
|
|
n/m
|
Other
|
|
67
|
|
|
105
|
|
-36%
|
|
|
302
|
|
|
544
|
|
-44%
|
Noninterest
income
|
|
233
|
|
|
205
|
|
14%
|
|
|
1,177
|
|
|
1,348
|
|
-13%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries
and employee benefits
|
|
1,355
|
|
|
1,149
|
|
18%
|
|
|
4,965
|
|
|
4,753
|
|
4%
|
Occupancy and equipment
|
|
147
|
|
|
131
|
|
12%
|
|
|
579
|
|
|
533
|
|
9%
|
Data
processing
|
|
289
|
|
|
268
|
|
8%
|
|
|
1,116
|
|
|
1,054
|
|
6%
|
Franchise and other taxes
|
|
93
|
|
|
78
|
|
19%
|
|
|
358
|
|
|
318
|
|
13%
|
Professional fees
|
|
204
|
|
|
280
|
|
-27%
|
|
|
1,148
|
|
|
956
|
|
20%
|
Director
fees
|
|
62
|
|
|
51
|
|
22%
|
|
|
228
|
|
|
150
|
|
52%
|
Postage,
printing and supplies
|
|
38
|
|
|
27
|
|
41%
|
|
|
168
|
|
|
198
|
|
-15%
|
Advertising and promotion
|
|
39
|
|
|
20
|
|
95%
|
|
|
125
|
|
|
145
|
|
-14%
|
Telephone
|
|
33
|
|
|
33
|
|
0%
|
|
|
123
|
|
|
119
|
|
3%
|
Loan
expenses
|
|
47
|
|
|
54
|
|
-13%
|
|
|
141
|
|
|
207
|
|
-32%
|
Foreclosed assets, net
|
|
16
|
|
|
45
|
|
-64%
|
|
|
65
|
|
|
137
|
|
-53%
|
Depreciation
|
|
52
|
|
|
54
|
|
-4%
|
|
|
211
|
|
|
211
|
|
0%
|
FDIC
premiums
|
|
54
|
|
|
108
|
|
-50%
|
|
|
222
|
|
|
421
|
|
-47%
|
Regulatory assessment
|
|
3
|
|
|
3
|
|
0%
|
|
|
62
|
|
|
131
|
|
-53%
|
Other
insurance
|
|
25
|
|
|
30
|
|
-17%
|
|
|
109
|
|
|
121
|
|
-10%
|
Other
|
|
61
|
|
|
39
|
|
56%
|
|
|
203
|
|
|
157
|
|
29%
|
Noninterest
expense
|
|
2,518
|
|
|
2,370
|
|
6%
|
|
|
9,823
|
|
|
9,611
|
|
2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
591
|
|
|
236
|
|
150%
|
|
|
2,437
|
|
|
1,284
|
|
90%
|
Income tax
expense
|
|
207
|
|
|
(3,193)
|
|
n/m
|
|
|
810
|
|
|
(3,193)
|
|
n/m
|
Net Income
|
$
|
384
|
|
$
|
3,429
|
|
-89%
|
|
$
|
1,627
|
|
$
|
4,477
|
|
-64%
|
Dividends on Series B
preferred stock and accretion of
discount
|
|
(214)
|
|
|
(214)
|
|
0%
|
|
|
(857)
|
|
|
(857)
|
|
0%
|
Earnings attributable
to common stockholders
|
$
|
170
|
|
$
|
3,215
|
|
-95%
|
|
$
|
770
|
|
$
|
3,620
|
|
-79%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share
Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss)
per common share
|
$
|
0.01
|
|
$
|
0.20
|
|
|
|
$
|
0.05
|
|
$
|
0.23
|
|
|
Diluted earnings
(loss) per common share
|
$
|
0.01
|
|
$
|
0.15
|
|
|
|
$
|
0.05
|
|
$
|
0.20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average common shares
outstanding - basic
|
|
16,037,823
|
|
|
15,957,377
|
|
|
|
|
16,020,847
|
|
|
15,857,127
|
|
|
Average common shares
outstanding - diluted
|
|
16,150,989
|
|
|
22,820,088
|
|
|
|
|
16,059,031
|
|
|
22,722,743
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
n/m - not
meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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)
|
2016
|
|
2016
|
|
2016
|
|
2016
|
|
2015
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
57,941
|
|
$
|
52,302
|
|
$
|
13,007
|
|
$
|
24,779
|
|
$
|
25,895
|
|
Interest-bearing
deposits in other financial institutions
|
|
100
|
|
|
100
|
|
|
100
|
|
|
-
|
|
|
-
|
|
Securities available
for sale
|
|
14,058
|
|
|
9,226
|
|
|
9,329
|
|
|
9,372
|
|
|
9,368
|
|
Loans held for
sale
|
|
2,812
|
|
|
2,466
|
|
|
2,736
|
|
|
1,598
|
|
|
889
|
|
Loans and
leases
|
|
353,050
|
|
|
336,269
|
|
|
330,977
|
|
|
307,195
|
|
|
303,684
|
|
Less allowance
for loan and lease losses
|
|
(6,925)
|
|
|
(6,893)
|
|
|
(6,613)
|
|
|
(6,716)
|
|
|
(6,620)
|
|
Loans and leases,
net
|
|
346,125
|
|
|
329,376
|
|
|
324,364
|
|
|
300,479
|
|
|
297,064
|
|
FHLB stock
|
|
1,942
|
|
|
1,942
|
|
|
1,942
|
|
|
1,942
|
|
|
1,942
|
|
Foreclosed assets,
net
|
|
204
|
|
|
-
|
|
|
-
|
|
|
1,636
|
|
|
1,636
|
|
Premises and
equipment, net
|
|
3,429
|
|
|
3,494
|
|
|
3,530
|
|
|
3,561
|
|
|
3,609
|
|
Bank owned life
insurance
|
|
4,930
|
|
|
4,896
|
|
|
4,863
|
|
|
4,830
|
|
|
4,797
|
|
Accrued interest
receivable and other assets
|
|
4,571
|
|
|
4,592
|
|
|
4,882
|
|
|
5,154
|
|
|
6,093
|
|
Total
assets
|
$
|
436,112
|
|
$
|
408,394
|
|
$
|
364,753
|
|
$
|
353,351
|
|
$
|
351,293
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
bearing
|
$
|
72,779
|
|
$
|
53,515
|
|
$
|
37,182
|
|
$
|
37,266
|
|
$
|
42,926
|
|
Interest bearing
|
|
302,585
|
|
|
292,339
|
|
|
258,846
|
|
|
255,168
|
|
|
247,541
|
|
Total deposits
|
|
375,364
|
|
|
345,854
|
|
|
296,028
|
|
|
292,434
|
|
|
290,467
|
|
FHLB
advances
|
|
13,500
|
|
|
15,500
|
|
|
22,500
|
|
|
14,500
|
|
|
14,500
|
|
Advances by borrowers
for taxes and insurance
|
|
408
|
|
|
349
|
|
|
198
|
|
|
353
|
|
|
656
|
|
Accrued interest
payable and other liabilities
|
|
2,393
|
|
|
2,415
|
|
|
2,078
|
|
|
2,369
|
|
|
2,203
|
|
Subordinated
debentures
|
|
5,155
|
|
|
5,155
|
|
|
5,155
|
|
|
5,155
|
|
|
5,155
|
|
Total liabilities
|
|
396,820
|
|
|
369,273
|
|
|
325,959
|
|
|
314,811
|
|
|
312,981
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity
|
|
39,292
|
|
|
39,121
|
|
|
38,794
|
|
|
38,540
|
|
|
38,312
|
|
Total liabilities and
stockholders' equity
|
$
|
436,112
|
|
$
|
408,394
|
|
$
|
364,753
|
|
$
|
353,351
|
|
$
|
351,293
|
|
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)
|
2016
|
|
2016
|
|
2016
|
|
2016
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
(loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
$
|
2,876
|
|
$
|
2,936
|
|
$
|
2,835
|
|
$
|
2,666
|
|
$
|
2,451
|
|
$
|
11,313
|
|
$
|
9,797
|
Provision for loan
and lease losses
|
$
|
-
|
|
$
|
20
|
|
$
|
160
|
|
$
|
50
|
|
$
|
50
|
|
$
|
230
|
|
$
|
250
|
Noninterest
income
|
$
|
233
|
|
$
|
350
|
|
$
|
290
|
|
$
|
304
|
|
$
|
205
|
|
$
|
1,177
|
|
$
|
1,348
|
Noninterest
expense
|
$
|
2,518
|
|
$
|
2,512
|
|
$
|
2,339
|
|
$
|
2,454
|
|
$
|
2,370
|
|
$
|
9,823
|
|
$
|
9,611
|
Net Income (loss)
(1)
|
$
|
384
|
|
$
|
505
|
|
$
|
422
|
|
$
|
316
|
|
$
|
3,429
|
|
$
|
1,627
|
|
$
|
4,477
|
Dividends on Series B
preferred stock
and accretion of discount
|
$
|
(214)
|
|
$
|
(214)
|
|
$
|
(215)
|
|
$
|
(214)
|
|
$
|
(214)
|
|
$
|
(857)
|
|
$
|
(857)
|
Earnings (loss)
available to common
stockholders
|
$
|
170
|
|
$
|
291
|
|
$
|
207
|
|
$
|
102
|
|
$
|
3,215
|
|
$
|
770
|
|
$
|
3,620
|
Basic earnings (loss)
per common share
|
$
|
0.01
|
|
$
|
0.02
|
|
$
|
0.01
|
|
$
|
0.01
|
|
$
|
0.20
|
|
$
|
0.05
|
|
$
|
0.23
|
Diluted earnings
(loss) per common
share
|
$
|
0.01
|
|
$
|
0.02
|
|
$
|
0.01
|
|
$
|
0.01
|
|
$
|
0.15
|
|
$
|
0.05
|
|
$
|
0.20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance Ratios
(annualized)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets
|
|
0.36%
|
|
|
0.53%
|
|
|
0.47%
|
|
|
0.36%
|
|
|
4.06%
|
|
|
0.43%
|
|
|
1.36%
|
Return on average
equity
|
|
3.92%
|
|
|
5.19%
|
|
|
4.37%
|
|
|
3.29%
|
|
|
39.05%
|
|
|
4.19%
|
|
|
12.84%
|
Average yield on
interest-earning assets
|
|
3.78%
|
|
|
4.22%
|
|
|
4.29%
|
|
|
4.14%
|
|
|
4.00%
|
|
|
4.09%
|
|
|
4.06%
|
Average rate paid on
interest-bearing
liabilities
|
|
1.09%
|
|
|
1.08%
|
|
|
1.06%
|
|
|
1.03%
|
|
|
1.03%
|
|
|
1.06%
|
|
|
1.00%
|
Average interest rate
spread
|
|
2.69%
|
|
|
3.14%
|
|
|
3.23%
|
|
|
3.11%
|
|
|
2.97%
|
|
|
3.03%
|
|
|
3.06%
|
Net interest margin,
fully taxable
equivalent
|
|
2.90%
|
|
|
3.32%
|
|
|
3.41%
|
|
|
3.29%
|
|
|
3.13%
|
|
|
3.21%
|
|
|
3.21%
|
Efficiency
ratio
|
|
80.99%
|
|
|
76.45%
|
|
|
74.85%
|
|
|
82.63%
|
|
|
89.23%
|
|
|
78.65%
|
|
|
86.14%
|
Noninterest expense
to average assets
|
|
2.38%
|
|
|
2.64%
|
|
|
2.61%
|
|
|
2.80%
|
|
|
2.80%
|
|
|
2.60%
|
|
|
2.92%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core capital ratio
(2)
|
|
9.66%
|
|
|
10.28%
|
|
|
10.92%
|
|
|
10.89%
|
|
|
11.12%
|
|
|
9.66%
|
|
|
11.12%
|
Total risk-based
capital ratio (2)
|
|
12.46%
|
|
|
13.11%
|
|
|
13.23%
|
|
|
13.69%
|
|
|
13.67%
|
|
|
12.46%
|
|
|
13.67%
|
Tier 1 risk-based
capital ratio (2)
|
|
11.20%
|
|
|
11.85%
|
|
|
11.97%
|
|
|
12.43%
|
|
|
12.40%
|
|
|
11.20%
|
|
|
12.40%
|
Common equity tier 1
capital to risk
weighted assets (2)
|
|
11.20%
|
|
|
11.85%
|
|
|
11.97%
|
|
|
12.43%
|
|
|
12.40%
|
|
|
11.20%
|
|
|
12.40%
|
Equity to total
assets at end of period
|
|
9.01%
|
|
|
9.58%
|
|
|
10.64%
|
|
|
10.91%
|
|
|
10.91%
|
|
|
9.01%
|
|
|
10.91%
|
Book value per common
share
|
$
|
1.67
|
|
$
|
1.69
|
|
$
|
1.67
|
|
$
|
1.66
|
|
$
|
1.64
|
|
$
|
1.67
|
|
$
|
1.64
|
Tangible book value
per common share
|
$
|
1.67
|
|
$
|
1.69
|
|
$
|
1.67
|
|
$
|
1.66
|
|
$
|
1.64
|
|
$
|
1.67
|
|
$
|
1.64
|
Period-end market
value per common
share
|
$
|
1.75
|
|
$
|
1.41
|
|
$
|
1.36
|
|
$
|
1.35
|
|
$
|
1.32
|
|
$
|
1.75
|
|
$
|
1.32
|
Period-end common
shares outstanding
|
|
16,294,910
|
|
|
16,002,910
|
|
|
16,003,710
|
|
|
16,024,210
|
|
|
16,024,210
|
|
|
16,294,910
|
|
|
16,024,210
|
Average basic common
shares
outstanding
|
|
16,037,823
|
|
|
16,003,363
|
|
|
16,017,997
|
|
|
16,024,210
|
|
|
15,957,377
|
|
|
16,020,847
|
|
|
15,857,127
|
Average diluted
common shares
outstanding
|
|
16,150,989
|
|
|
16,021,023
|
|
|
16,028,990
|
|
|
16,033,988
|
|
|
22,820,088
|
|
|
16,059,031
|
|
|
22,722,743
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset
Quality
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming
loans
|
$
|
704
|
|
$
|
868
|
|
$
|
1,397
|
|
$
|
1,442
|
|
$
|
1,425
|
|
$
|
704
|
|
$
|
1,425
|
Nonperforming loans
to total loans
|
|
0.20%
|
|
|
0.26%
|
|
|
0.42%
|
|
|
0.47%
|
|
|
0.47%
|
|
|
0.20%
|
|
|
0.47%
|
Nonperforming assets
to total assets
|
|
0.21%
|
|
|
0.21%
|
|
|
0.38%
|
|
|
0.87%
|
|
|
0.87%
|
|
|
0.21%
|
|
|
0.87%
|
Allowance for loan
and lease losses to
total loans
|
|
1.96%
|
|
|
2.05%
|
|
|
2.00%
|
|
|
2.19%
|
|
|
2.18%
|
|
|
1.96%
|
|
|
2.18%
|
Allowance for loan
and lease losses to
nonperforming loans
|
|
983.66%
|
|
|
794.12%
|
|
|
473.37%
|
|
|
465.74%
|
|
|
464.56%
|
|
|
983.66%
|
|
|
464.56%
|
Net charge-offs
(recoveries)
|
$
|
(32)
|
|
$
|
(260)
|
|
$
|
263
|
|
$
|
(46)
|
|
$
|
(48)
|
|
$
|
(75)
|
|
$
|
(54)
|
Annualized net
charge-offs (recoveries)
to average loans
|
|
(0.04%)
|
|
|
(0.32%)
|
|
|
0.34%
|
|
|
(0.06%)
|
|
|
(0.07%)
|
|
|
(0.02%)
|
|
|
(0.02%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
Balances
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
$
|
333,178
|
|
$
|
327,346
|
|
$
|
313,438
|
|
$
|
298,158
|
|
$
|
280,169
|
|
$
|
318,030
|
|
$
|
275,091
|
Assets
|
$
|
422,681
|
|
$
|
380,319
|
|
$
|
358,290
|
|
$
|
349,991
|
|
$
|
338,095
|
|
$
|
377,820
|
|
$
|
329,184
|
Stockholders'
equity
|
$
|
39,204
|
|
$
|
38,949
|
|
$
|
38,632
|
|
$
|
38,422
|
|
$
|
35,127
|
|
$
|
38,802
|
|
$
|
34,878
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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-4th-quarter-2016-and-full-year-2016-financial-results-300410725.html
SOURCE Central Federal Corporation