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CF Bankshares Inc. Reports Strong Financial Performance for 2024 Year-End and Q4

CF Bankshares Inc. (NASDAQ: CFBK), the parent company of CFBank, has announced its financial results for the fourth quarter and the entire year ending December 31, 2024. The company's performance showcases a solid growth trajectory despite a challenging economic landscape characterized by fluctuating interest rates.

Highlights from the Fourth Quarter and Full Year 2024

For the fourth quarter of 2024, CF Bankshares reported a net income of $4.4 million, equating to $0.68 per diluted share. The annual net income captured for 2024 came to $13.4 million, or $2.06 per diluted share, reflecting a stable yet slightly decreased income compared to the previous fiscal year where it stood at $16.9 million.

In terms of Pre-Provision, Pre-Tax Net Revenue (PPNR), the company reported $6.5 million for Q4, indicating a 12% increase over the previous quarter. Likewise, the annual PPNR reached $22.9 million, demonstrating a steady income stream despite increased credit loss reserves.

Cumulatively, the return on average equity (ROE) reported for Q4 was 10.61%, while the return on average assets (ROA) was 0.86%. This performance highlights the company’s smart management of resources and effective operational adjustments to meet market demands.

Growth in Key Revenue Streams

One of the standout narratives from the report was the significant expansion in net interest income which increased by $1 million (9.4%) from the third quarter, amounting to $12.5 million for Q4. The net interest margin (NIM) also rose by 16 basis points, attributed mainly to a reduction in rates on interest-bearing liabilities. This improvement marks the third consecutive quarter of NIM expansion for CF Bankshares.

Notably, noninterest income surged by 40% in Q4 compared to the same period last year, driven largely by increased customer fees related to cash management products — an impressive growth of 60% throughout the year. Furthermore, noninterest-bearing deposits experienced a robust growth of $38 million (16%) throughout the year.

Recent Developments and Future Outlook

On January 6, 2025, CF Bankshares declared a cash dividend of $0.07 per share on common stock which aligns with its strategy to deliver shareholder value. Timothy T. O'Dell, President and CEO, expressed optimism regarding the company’s adaptability in changing economic environments, mentioning this quarter’s performance as “reflective of improved results and stabilized performance.”

Despite a volatile year laden with challenges such as high-interest rates, the leadership emphasized their team's ability to adjust operations effectively. O'Dell pointed out strategic enhancements in their Corporate Treasury Management Deposit business, contributing to deposit growth.

Additionally, with a robust pipeline of business opportunities for the upcoming year, CF Bankshares is expected to capitalize on its strengths. The company has also focused on hiring experienced bankers to bolster its regional teams, aiming for sustained growth in commercial lending and treasury management services.

Conclusion

In summary, CF Bankshares Inc.’s financial performance for 2024 has exhibited resilience and adaptability amidst economic challenges. With a distinct focus on enhancing customer relationships and service offerings, CF Bankshares is well-positioned for another successful year ahead, emphasizing continuous improvement and strategic growth.

Additional Info:

• - Net Loans: At year-end, net loans totaled $1.7 billion, showcasing slight growth from previous quarters.
• - Asset Quality: The allowance for credit losses stood at $17.5 million, indicating cautious management amid evolving credit risks.
• - Deposits: Ending the year with total deposits of $1.76 billion, a slight increase compared to the previous periods, highlights a commitment to expanding customer engagement and service delivery.

CF Bankshares continues to prove its mettle as a flexible banking institution that prioritizes solid performance and customer satisfaction above all. With strategic initiatives in play, the company anticipates a bright future as it enters 2025.