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8-K - FORM 8-K - CF BANKSHARES INC. | c17376e8vk.htm |
Exhibit 99
PRESS RELEASE
FOR IMMEDIATE RELEASE:
|
May 16, 2011 | |
For Further Information:
|
Eloise L. Mackus, CEO | |
Phone: 330.576.1208 | ||
Fax: 330.666.7959 |
CENTRAL FEDERAL CORPORATION ANNOUNCES 1st QUARTER 2011 RESULTS
Fairlawn, Ohio May 16, 2011 Central Federal Corporation (Nasdaq: CFBK) announced a net loss
of $1.7 million, or $0.44 per diluted common share, for the quarter ended March 31, 2011 compared
to a net loss of $95,000, or $0.05 per diluted common share, for the quarter ended March 31, 2010.
The $1.6 million increase in the net loss for the three months ended March 31, 2011 was due to a
$671,000 increase in the provision for loan losses, a $490,000 decrease in net interest income and
a $354,000 decrease in noninterest income.
The provision for loan losses totaled $1.4 million for the quarter ended March 31, 2011 and
reflected continued adverse economic conditions which affected loan performance and resulted in a
sustained high level of nonperforming loans, loan charge-offs and criticized and classified loans.
Our ongoing assessment of CFBanks loan portfolio resulted in a $671,000 increase in the provision
for loan losses during the quarter ended March 31, 2011, compared to the quarter ended March 31,
2010, due to an increase in loss rates and an increase in net charge-offs compared to
the prior year quarter. The ratio of the allowance for loan losses (ALLL) to total loans was 5.00%
at March 31, 2011, compared to 4.87% at December 31, 2010.
Nonperforming loans decreased $1.7 million, or 17.1%, and totaled $8.3 million at March 31, 2011,
compared to $10.1 million at December 31, 2010. The ratio of nonperforming loans to total loans
improved to 4.43% at March 31, 2011, compared to 5.02% at December 31, 2010. Criticized and
classified assets decreased $2.7 million, or 5.4%, and totaled $46.9 million at March 31, 2011,
compared to $49.6 million at December 31, 2010.
The $490,000 decrease in net interest income was due to a decrease in net interest margin from
3.39% in the March 2010 quarter to 2.67% in the March 2011 quarter. Net interest margin in the
first quarter of 2011 was negatively affected by the $69.6 million balance of cash and cash
equivalents at March 31, 2011, which was invested in low-yielding overnight investments. The high
level of on-balance-sheet liquidity was in response to uncertain regulatory conditions. As a result
of the losses suffered in 2009, 2010 and the first quarter of 2011, management has been concerned
that CFBank would be restricted from accepting or renewing brokered deposits, in addition to other
regulatory restrictions, and moved aggressively to build liquidity to deal with the level of
nonperforming assets, potential retail deposit outflows and potential decreased borrowing capacity
from the Federal Home Loan Bank (FHLB) and Federal Reserve Bank (FRB).
The $354,000 decrease in noninterest income resulted from a $240,000 net gain on sales of
securities in the prior year quarter, with no gain in the current year quarter. Additionally, net
gains on sales of loans decreased $110,000 in the quarter ended March 31, 2011 due to both lower
mortgage production and lower fees on sales than in the quarter ended March 31, 2010.
At March 31, 2011, CFBank was well
capitalized under the regulatory framework for prompt corrective action. However, CFBank was requested by its
regulators to provide a Capital Plan that established capital levels appropriate for the risk characteristics of the Bank. In
the Capital Plan, the board established 8% core capital and 13% total risk-based capital levels. Due
to losses, continued asset quality issues as evidenced by high levels of criticized and classified
loans, as well as nonperforming assets, at March 31, 2011 we did not meet the capital requirements of our Capital Plan. OTS has authority to downgrade capital status in the event
of regulatory concerns, and based on CFBanks financial performance, we expect formal supervisory enforcement
actions by OTS that could limit our operations, impose restrictions on our ability to solicit deposits, including brokered deposits, and impact our financial condition. We expect
individual capital requirements substantially similar to those in our existing Capital Plan to be imposed in addition to other regulatory restrictions.
Eloise L. Mackus, CEO commented, Our decrease in nonperforming, criticized and classified asset
levels, improvement in our ratio of nonperforming loans to total loans, and increased
liquidity reflect the work being done by the CFBank team. We are working hard to maintain these
favorable trends, as the need for further improvement is critical. Both regulatory and economic
challenges continue as a result of our legacy asset quality, but our team has demonstrated its
ability to meet these challenges.
Jerry F. Whitmer, Chairman of the Board, added, Bringing our capital ratios to levels that both we
and our regulators find satisfactory will require additional capital, and the Board of Directors is
considering available alternatives to preserve and enhance stockholder value. Central Federal
Corporations stockholders remain supportive, and we thank them for their patience.
Net interest income
Net interest income totaled $1.7 million for the quarter ended March 31, 2011, and decreased
$490,000, or 22.0%, compared to $2.2 million for the quarter ended March 31, 2010. The margin
decreased 72 basis points (bp) to 2.67% in the first quarter of 2011, compared to 3.39% in the
first quarter of 2010. The decrease in margin was due to a 105 bp decrease in the yield on average
interest earning assets, partially offset by a 45 bp decrease in the average cost of
interest-bearing liabilities in the quarter ended March 31, 2011, compared to the quarter ended
March 31, 2010. The average yield on interest-earning assets decreased in the first quarter of
2011 primarily due to a $44.0 million decrease in average loan balances and a $36.3 million
increase other earning asset balances, primarily cash, which provide lower yields than loans. The
average cost of interest-bearing liabilities decreased due to the sustained low market interest
rate environment and reduced deposit pricing in the current year quarter.
Interest income totaled $2.6 million and decreased $723,000, or 21.4%, for the quarter ended March
31, 2011, compared to $3.4 million for the quarter ended March 31, 2010. The decrease in interest
income was largely due to a decrease in income on loans and securities.
Interest expense decreased $233,000, or 20.4%, to $910,000 for the first quarter of 2011, compared
to $1.1 million in the first quarter of 2010. The decrease in interest expense resulted from lower
deposit and borrowing costs and a decrease in the average balance of borrowings outstanding,
partially offset by an increase in the average balance of deposits.
Provision for loan losses
The provision for loan losses totaled $1.4 million for the quarter ended March 31, 2011, and
increased $671,000 compared to $748,000 for the quarter ended March 31, 2010. The increase in the
provision for loan losses for the quarter ended March 31, 2011 was primarily a result of an
increase in net charge-offs compared to the quarter ended March 31, 2010. Net charge-offs totaled
$1.7 million, or 3.63% of average loans on an annualized basis for the quarter ended March 31,
2011, compared to $430,000, or .73% of average loans on an annualized basis for the quarter ended
March 31, 2010. The increase in net charge-offs during the three months ended March 31, 2011 was
related to commercial, commercial real estate and multi-family real estate loans and was primarily
a result of adverse economic conditions that continue to negatively impact our borrowers, our loan
performance and our loan quality.
Nonperforming loans, which are nonaccrual loans and loans at least 90 days past due but still
accruing interest, decreased $1.7 million, or 17.1%, and totaled $8.3 million at March 31, 2011,
compared to $10.1 million at December 31, 2010. The decrease in nonperforming loans was primarily
due to $1.8 million in loan charge-offs, and, to a lesser extent, loan payments and proceeds from
the sale of the underlying collateral of various loans, partially offset by $342,000 in additional
loans that became nonperforming during 2011. The ratio of nonperforming loans to total loans
improved to 4.43% at March 31, 2011, compared to 5.02% at December 31, 2010.
2
Nonaccrual loans include some loans that were modified and identified as troubled debt
restructurings, where concessions had been granted to borrowers experiencing financial
difficulties. These concessions could include a reduction in the interest rate, payment
extensions, principal forgiveness and other actions intended to maximize collection. Troubled debt
restructurings included in nonaccrual loans totaled $3.9 million at March 31, 2011, and $4.5
million at December 31, 2010.
Nonaccual loans at March 31, 2011 and December 31, 2010 do not include $694,000 and $839,000,
respectively, in troubled debt restructurings where customers have established a sustained period
of repayment performance, generally six months, the loans are current according to their modified
terms and repayment of the remaining contractual payments is expected. These loans are included in
total impaired loans.
Individually impaired loans totaled $8.7 million at March 31, 2011, and decreased $2.0 million, or
19.0%, from $10.7 million at December 31, 2010. The decrease in individually impaired loans was
primarily due to loan charge-offs, which totaled $1.8 million during the three months ended March
31, 2011. The amount of the ALLL specifically allocated to individually impaired loans totaled
$2.9 million at both March 31, 2011 and December 31, 2010.
The level of criticized and classified assets continues to be negatively impacted by the increasing
duration and lingering nature of the current recessionary economic environment and its continued
detrimental effects on our borrowers, including deterioration in client business performance,
declines in borrowers cash flows and lower collateral values. Loans classified as special mention
totaled $19.4 million at March 31, 2011, and decreased $1.6 million, or 7.7%, compared to $21.0
million at December 31, 2010. Loans classified as substandard totaled $27.5 million at March 31,
2011, and decreased $1.1 million, or 3.8%, compared to $28.6 million at December 31, 2010. The
decrease in loans classified as special mention and substandard was due to charge-offs totaling
$1.8 million and, to a lesser extent, principal payments and payoffs since December 31, 2010.
Noninterest income
Noninterest income for the quarter ended March 31, 2011 totaled $156,000 and decreased $354,000
compared to the quarter ended March 31, 2010. The decrease was primarily due to $240,000 in gains
on sales of securities in the prior year quarter, and no sales of securities in the current year
period. Additionally, net gains on sales of loans decreased $110,000 in the current year quarter.
Net gains on sales of loans totaled $40,000 for the first quarter of 2011, and decreased $110,000,
or 73.3%, compared to $150,000 for the first quarter of 2010. The decrease in net gains on sales
of loans in the current year quarter was due to both lower mortgage production and lower fees on
sales than in the quarter ended March 31, 2010. Originations totaled $12.5 million for the quarter
ended March 31, 2011, and decreased $3.3 million, or 20.9%, compared to $15.8 million in the prior
year quarter. The decrease in originations was due to an increase in mortgage interest rates and
three fewer mortgage loan originators in the current year quarter. Additionally, the First-Time
Home Buyer Credit, which was extended for purchases made through April 30, 2010 by The Worker,
Homeownership and Business Assistance Act of 2009, positively impacted originations in the first
quarter of 2010. Gross fees earned on loan sales totaled 1.2% of loans originated for the quarter
ended March 31, 2011, compared to 1.6% in the prior year quarter, due to an increase in mortgage
market interest rates.
3
Noninterest expense
Noninterest expense increased $84,000, or 4.0%, and totaled $2.2 million for the first quarter of
2011, compared to $2.1 million for the first quarter of 2010. The increase in noninterest expense
during the three months ended March 31, 2011 was primarily due to an increase in professional fees
and foreclosed assets expense associated with our continued workout efforts. Professional fees
increased $95,000, or 46.1%, and totaled $301,000 for the three months ended March 31, 2011,
compared to $206,000 in the prior year quarter. The increase was primarily related to legal costs
associated with nonperforming loans, which increased $55,000 and totaled $144,000
for the quarter ended March 31, 2011, compared to $89,000 for the quarter ended March 31, 2010. The
increase in professional fees was also due to legal costs related to corporate and regulatory
matters. Foreclosed assets expense totaled $33,000 for the three months ended March 31, 2011.
There was no foreclosed assets expense for the three months ended March 31, 2010. This expense was
related to maintenance of foreclosed properties, including real estate taxes, utilities and other
fees.
The ratio of noninterest expense to average assets increased to 3.06% for the quarter ended March
31, 2011, compared to 2.97% for the quarter ended March 31, 2010 due to the increase in noninterest
expense in the current year quarter. The efficiency ratio increased to 115.04% for the quarter
ended March 31, 2011, compared to 83.87% for the quarter ended March 31, 2010 due to the increase
in noninterest expense and decrease in net interest income and noninterest income in the current
year quarter.
Balance sheet activity
Assets totaled $294.1 million at March 31, 2011 and increased $18.9 million, or 6.9%, from $275.2
million at December 31, 2010. The increase was due to a $35.3 million increase in cash and cash
equivalents, partially offset by a $2.9 million decrease in securities available for sale, and an
$11.8 million decrease in net loan balances.
Cash and cash equivalents totaled $69.6 million at March 31, 2011 and increased $35.3 million from
$34.3 million at December 31, 2010. The increase in cash and cash equivalents was a result of
building on-balance-sheet liquidity in response to uncertain regulatory conditions, as described
previously. The increase in liquidity was primarily due to a $24.5 million increase in certificate of
deposit account balances since December 31, 2010. Liquidity was also increased by cash flows from
the loan and securities portfolios which were not redeployed into new loan originations or
securities.
Securities available for sale totaled $25.9 million at March 31, 2011, and decreased $2.9 million,
or 10.1%, compared to $28.8 million at December 31, 2010 due to scheduled maturities and repayments
during the current year period.
Net loans totaled $179.0 million at March 31, 2011 and decreased $11.8 million, or 6.2%, from
$190.8 million at December 31, 2010. The decrease was primarily due to lower commercial,
multi-family residential, commercial real estate and single family residential loan balances and,
to a lesser extent, lower consumer balances. Commercial, commercial real estate and multi-family
loans, including the related construction loans decreased $9.8 million, or 6.3%, and totaled $147.0
million at March 31, 2011. The decrease was primarily due to principal repayments and payoffs in
excess of current year originations, and $1.8 million in charge-offs during the quarter.
Single-family residential mortgage loans, including the related construction loans totaled $23.8
million at March 31, 2011 and decreased $1.8 million, or 7.2%, from $25.6 million at December 31,
2010. The decrease in mortgage loans was due to current period principal repayments in excess of
loans originated for portfolio. Consumer loans totaled $17.7 million at March 31, 2011 and
decreased $440,000, or 2.4%, due to repayments of auto loans and home equity lines of credit.
The ALLL totaled $9.4 million at March 31, 2011 and decreased $341,000, or 3.5% from $9.8 million
at December 31, 2010. The decrease in the ALLL was due to the decrease in overall loan balances,
the charge-off of certain nonperforming loans during the quarter and the decrease in nonperforming
loans. The ratio of the ALLL to total loans was 5.00% at March 31, 2011, compared to 4.87% at
December 31, 2010. The increase in the ratio of the ALLL to total loans reflects continued adverse
economic conditions affecting loan performance which resulted in continued high levels of
nonperforming loans, loan charge-offs and criticized and classified assets.
4
Foreclosed assets totaled $3.5 million at March 31, 2011 and decreased $1.0 million, or 22.2%, from
$4.5 million at December 30, 2010. The decrease was due to the sale of $1.0 million in inventory
from a jewelry manufacturer that had been foreclosed in December 2010. There were no assets
acquired by the Bank through foreclosure during the three months ended March 31, 2011.
Deposits totaled $248.9 million at March 31, 2011 and increased $21.5 million, or 9.5%, from $227.4
million at December 31, 2010. The increase was primarily due to a $24.5 million increase in
certificate of deposit account balances, partially offset by a $3.4 million decrease in money
market account balances.
Certificate of deposit account balances increased due to a $22.1 million increase in retail deposit
accounts, and a $2.4 million increase in brokered deposits. Retail certificate of deposit account
balances increased primarily due to competitive pricing strategies related to certificates with
maturities of two years and longer. The increase in brokered deposits was based on CFBanks
determination to build on-balance-sheet liquidity and lock in the cost of longer-term liabilities
at low current market interest rates.
Money market account balances totaled $53.4 million at March 31, 2011 and decreased $3.4 million,
or 5.9%, from $56.8 million at December 31, 2010. The decrease was due to customers seeking higher
yields on these short-term funds than management was willing to offer based on asset/liability
management strategies.
Long-term FHLB advances totaled $21.7 million at March 31, 2011 and decreased $2.2 million, or
9.2%, from $23.9 million at December 31, 2010 due to repayment of maturing advances. The advances
were replaced with brokered deposits in accordance with the Companys liquidity management program
in order to maintain borrowing capacity with the FHLB.
Stockholders equity totaled $14.1 million at March 31, 2011 and decreased $1.9 million, or 11.6%,
from $16.0 million at December 31, 2010. The decrease was due to the $1.7 million net loss,
$104,000 in preferred stock dividends accrued but not paid and accretion of discount on preferred
stock related to the Troubled Asset Relief Program (TARP) Capital Purchase Program and a $65,000
decrease in unrealized gains in the securities portfolio.
With the capital provided by the TARP Capital Purchase Plan, CFBank has continued to make financing
available to businesses and consumers in our market areas. Since receipt of $7.2 million in TARP
Capital Purchase Program proceeds in December 2008 and through March 31, 2011, we have originated
$223.4 million in new loans.
5
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. Additional information about CFBanks banking services
and the Company is available at www.CFBankOnline.com.
Forward-Looking Information
Statements in this earnings release and in other communications by the Company that are not
statements of historical fact are forward-looking statements which are made in good faith by us
pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
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 Company, as defined below, management or Boards of Directors; (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:
| a continuation of current high unemployment rates and difficult economic conditions or adverse changes in general economic conditions and economic conditions in the markets we serve, any of which may affect, among other things, our level of nonperforming assets, charge-offs, and provision for loan loss expense; | ||
| changes in interest rates that may reduce net interest margin and impact funding sources; | ||
| our ability to maintain sufficient liquidity to continue to fund our operations; | ||
| 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 the Companys securities portfolio; | ||
| results of examinations of the Holding Company and Bank by the regulators, including the possibility that the regulators may, among other things, require the Company to curtail its asset growth, increase its capital levels, increase its allowance for loan losses or write-down assets; | ||
| the uncertainties arising from the Companys participation in the TARP Capital Purchase Program, including the impacts on employee recruitment and retention and other business and practices, and uncertainties concerning the potential redemption by us of Treasurys preferred stock investment under the program, including the timing of, regulatory approvals for, and conditions placed upon, any such redemption; | ||
| changes in tax laws, rules and regulations; | ||
| various monetary and fiscal policies and regulations, including those determined by the Federal Reserve Board, the Federal Deposit Insurance Corporation (FDIC), the Office of the Controller of the Currency (OCC) and the OTS; | ||
| 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; |
6
| technological factors which may affect our operations, pricing, products and services; | ||
| unanticipated litigation, claims or assessments; and | ||
| managements 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.
7
Consolidated Statements of Operations
($ in thousands, except share data)
(unaudited)
($ in thousands, except share data)
(unaudited)
Three months ended | ||||||||||||
March 31, | ||||||||||||
2011 | 2010 | % change | ||||||||||
Total interest income |
$ | 2,649 | $ | 3,372 | -21 | % | ||||||
Total interest expense |
910 | 1,143 | -20 | % | ||||||||
Net interest income |
1,739 | 2,229 | -22 | % | ||||||||
Provision for loan losses |
1,419 | 748 | 90 | % | ||||||||
Net interest income after provision for loan losses |
320 | 1,481 | -78 | % | ||||||||
Noninterest income |
||||||||||||
Service charges on deposit accounts |
61 | 70 | -13 | % | ||||||||
Net gain on sales of loans |
40 | 150 | -73 | % | ||||||||
Net gain on sale of securities |
| 240 | n/m | |||||||||
Other |
55 | 50 | 10 | % | ||||||||
Noninterest income |
156 | 510 | -69 | % | ||||||||
Noninterest expense |
||||||||||||
Salaries and employee benefits |
1,041 | 1,053 | -1 | % | ||||||||
Occupancy and equipment |
85 | 68 | 25 | % | ||||||||
Data processing |
144 | 155 | -7 | % | ||||||||
Franchise taxes |
66 | 93 | -29 | % | ||||||||
Professional fees |
301 | 206 | 46 | % | ||||||||
Director fees |
46 | 26 | 77 | % | ||||||||
Postage, printing and supplies |
48 | 59 | -19 | % | ||||||||
Advertising and promotion |
10 | 28 | -64 | % | ||||||||
Telephone |
22 | 24 | -8 | % | ||||||||
Loan expenses |
10 | 27 | -63 | % | ||||||||
Foreclosed assets, net |
33 | | n/m | |||||||||
Depreciation |
114 | 131 | -13 | % | ||||||||
FDIC premiums |
175 | 149 | 17 | % | ||||||||
Amortization of intangibles |
10 | 10 | 0 | % | ||||||||
OTS assessment |
37 | 23 | 61 | % | ||||||||
Other |
48 | 54 | -11 | % | ||||||||
Noninterest expense |
2,190 | 2,106 | 4 | % | ||||||||
Loss before income taxes |
(1,714 | ) | (115 | ) | n/m | |||||||
Income tax benefit |
| (20 | ) | n/m | ||||||||
Net loss |
$ | (1,714 | ) | $ | (95 | ) | n/m | |||||
Net loss attributable to common stockholders |
$ | (1,818 | ) | $ | (197 | ) | n/m | |||||
Share Data |
||||||||||||
Basic loss per common share |
$ | (0.44 | ) | $ | (0.05 | ) | n/m | |||||
Diluted loss per common share |
$ | (0.44 | ) | $ | (0.05 | ) | n/m | |||||
Average common shares outstanding basic |
4,098,266 | 4,095,217 | ||||||||||
Average common shares outstanding diluted |
4,098,266 | 4,095,217 |
n/m not meaningful
8
Consolidated Statements of Financial Condition
($ in thousands)
(unaudited)
($ in thousands)
(unaudited)
March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||
2011 | 2010 | 2010 | 2010 | 2010 | ||||||||||||||||
Assets |
||||||||||||||||||||
Cash and cash equivalents |
$ | 69,558 | $ | 34,275 | $ | 34,015 | $ | 13,406 | $ | 23,707 | ||||||||||
Securities available for sale |
25,896 | 28,798 | 29,501 | 24,282 | 23,238 | |||||||||||||||
Loans held for sale |
1,361 | 1,953 | 1,875 | 10,069 | 1,586 | |||||||||||||||
Loans |
188,389 | 200,525 | 213,509 | 219,096 | 231,701 | |||||||||||||||
Less allowance for loan losses |
(9,417 | ) | (9,758 | ) | (10,057 | ) | (10,074 | ) | (7,396 | ) | ||||||||||
Loans, net |
178,972 | 190,767 | 203,452 | 209,022 | 224,305 | |||||||||||||||
Federal Home Loan Bank stock |
1,942 | 1,942 | 1,942 | 1,942 | 1,942 | |||||||||||||||
Loan servicing rights |
54 | 57 | 63 | 72 | 82 | |||||||||||||||
Foreclosed assets, net |
3,509 | 4,509 | 2,348 | 2,348 | | |||||||||||||||
Premises and equipment, net |
5,903 | 6,016 | 6,661 | 6,783 | 6,887 | |||||||||||||||
Assets held for sale |
535 | 535 | | | | |||||||||||||||
Other intangible assets |
119 | 129 | 139 | 149 | 159 | |||||||||||||||
Bank owned life insurance |
4,175 | 4,143 | 4,111 | 4,083 | 4,050 | |||||||||||||||
Accrued interest receivable and other assets |
2,082 | 2,108 | 2,845 | 2,945 | 2,648 | |||||||||||||||
Total assets |
$ | 294,106 | $ | 275,232 | $ | 286,952 | $ | 275,101 | $ | 288,604 | ||||||||||
Liabilities and Stockholders Equity |
||||||||||||||||||||
Deposits |
||||||||||||||||||||
Noninterest bearing |
$ | 18,886 | $ | 20,392 | $ | 20,337 | $ | 20,687 | $ | 20,171 | ||||||||||
Interest bearing |
229,999 | 206,989 | 217,390 | 205,568 | 214,563 | |||||||||||||||
Total deposits |
248,885 | 227,381 | 237,727 | 226,255 | 234,734 | |||||||||||||||
Long-term Federal Home Loan Bank advances |
21,742 | 23,942 | 23,942 | 23,942 | 23,942 | |||||||||||||||
Other borrowings |
1,500 | | | | | |||||||||||||||
Advances by borrowers for taxes and insurance |
141 | 213 | 93 | 48 | 75 | |||||||||||||||
Accrued interest payable and other liabilities |
2,552 | 2,552 | 3,484 | 2,549 | 1,953 | |||||||||||||||
Subordinated debentures |
5,155 | 5,155 | 5,155 | 5,155 | 5,155 | |||||||||||||||
Total liabilities |
279,975 | 259,243 | 270,401 | 257,949 | 265,859 | |||||||||||||||
Stockholders equity |
14,131 | 15,989 | 16,551 | 17,152 | 22,745 | |||||||||||||||
Total liabilities and stockholders equity |
$ | 294,106 | $ | 275,232 | $ | 286,952 | $ | 275,101 | $ | 288,604 | ||||||||||
9
Consolidated Financial Highlights
($ in thousands except per share data)
(unaudited)
($ in thousands except per share data)
(unaudited)
At or for the three months ended | ||||||||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||
2011 | 2010 | 2010 | 2010 | 2010 | ||||||||||||||||
Earnings (loss) |
||||||||||||||||||||
Net interest income |
$ | 1,739 | $ | 1,968 | $ | 2,056 | $ | 2,181 | $ | 2,229 | ||||||||||
Provision for loan losses |
$ | 1,419 | $ | 1,165 | $ | 617 | $ | 5,938 | $ | 748 | ||||||||||
Noninterest income |
$ | 156 | $ | 404 | $ | 587 | $ | 293 | $ | 510 | ||||||||||
Noninterest expense |
$ | 2,190 | $ | 2,007 | $ | 2,220 | $ | 2,099 | $ | 2,106 | ||||||||||
Net loss |
$ | (1,714 | ) | $ | (990 | ) | $ | (232 | ) | $ | (5,553 | ) | $ | (95 | ) | |||||
Net loss attributable to common stockholders |
$ | (1,818 | ) | $ | (1,093 | ) | $ | (335 | ) | $ | (5,655 | ) | $ | (197 | ) | |||||
Basic loss per common share |
$ | (0.44 | ) | $ | (0.26 | ) | $ | (0.08 | ) | $ | (1.38 | ) | $ | (0.05 | ) | |||||
Diluted loss per common share |
$ | (0.44 | ) | $ | (0.26 | ) | $ | (0.08 | ) | $ | (1.38 | ) | $ | (0.05 | ) | |||||
Performance Ratios (annualized) |
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Return on average assets |
(2.39 | %) | (1.41 | %) | (0.32 | %) | (7.74 | %) | (0.13 | %) | ||||||||||
Return on average equity |
(45.57 | %) | (24.31 | %) | (5.52 | %) | (106.84 | %) | (1.62 | %) | ||||||||||
Average yield on interest-earning assets |
4.07 | % | 4.45 | % | 4.64 | % | 4.86 | % | 5.12 | % | ||||||||||
Average rate paid on interest-bearing liabilities |
1.46 | % | 1.56 | % | 1.62 | % | 1.82 | % | 1.91 | % | ||||||||||
Average interest rate spread |
2.61 | % | 2.89 | % | 3.02 | % | 3.04 | % | 3.21 | % | ||||||||||
Net interest margin, fully taxable equivalent |
2.67 | % | 3.01 | % | 3.12 | % | 3.23 | % | 3.39 | % | ||||||||||
Efficiency ratio |
115.04 | % | 84.19 | % | 91.51 | % | 84.44 | % | 83.87 | % | ||||||||||
Noninterest expense to average assets |
3.06 | % | 2.86 | % | 3.09 | % | 2.92 | % | 2.97 | % | ||||||||||
Capital |
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Core capital ratio (1) |
5.68 | % | 6.59 | % | 6.58 | % | 6.87 | % | 8.44 | % | ||||||||||
Total risk-based capital ratio (1) |
10.60 | % | 10.68 | % | 10.53 | % | 10.01 | % | 12.22 | % | ||||||||||
Tier 1 risk-based capital ratio (1) |
9.32 | % | 9.41 | % | 9.25 | % | 8.73 | % | 10.97 | % | ||||||||||
Tangible capital ratio (1) |
5.68 | % | 6.59 | % | 6.58 | % | 6.87 | % | 8.44 | % | ||||||||||
Equity to total assets at end of period |
4.80 | % | 5.81 | % | 5.77 | % | 6.23 | % | 7.88 | % | ||||||||||
Tangible equity to tangible assets |
4.77 | % | 5.77 | % | 5.72 | % | 6.18 | % | 7.83 | % | ||||||||||
Book value per common share |
$ | 1.71 | $ | 2.16 | $ | 2.30 | $ | 2.47 | $ | 3.83 | ||||||||||
Tangible book value per common share |
$ | 1.68 | $ | 2.13 | $ | 2.27 | $ | 2.43 | $ | 3.79 | ||||||||||
Period-end market value per common share |
$ | 1.30 | $ | 0.51 | $ | 0.95 | $ | 1.54 | $ | 1.19 | ||||||||||
Period-end common shares outstanding |
4,127,798 | 4,127,798 | 4,121,798 | 4,092,839 | 4,098,671 | |||||||||||||||
Average basic common shares outstanding |
4,098,266 | 4,095,064 | 4,092,908 | 4,095,993 | 4,095,217 | |||||||||||||||
Average diluted common shares outstanding |
4,098,266 | 4,095,064 | 4,092,908 | 4,095,993 | 4,095,217 | |||||||||||||||
Asset Quality |
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Nonperforming loans |
$ | 8,341 | $ | 10,057 | $ | 10,676 | $ | 10,705 | $ | 14,066 | ||||||||||
Nonperforming loans to total loans |
4.43 | % | 5.02 | % | 5.02 | % | 4.90 | % | 6.09 | % | ||||||||||
Nonperforming assets to total assets |
4.03 | % | 5.29 | % | 4.54 | % | 4.74 | % | 4.87 | % | ||||||||||
Allowance for loan losses to total loans |
5.00 | % | 4.87 | % | 4.73 | % | 4.61 | % | 3.20 | % | ||||||||||
Allowance for loan losses to nonperforming loans |
112.90 | % | 97.03 | % | 94.20 | % | 94.11 | % | 52.58 | % | ||||||||||
Net charge-offs |
$ | 1,746 | $ | 1,474 | $ | 634 | $ | 3,272 | $ | 430 | ||||||||||
Annualized net charge-offs to average loans |
3.63 | % | 2.85 | % | 1.17 | % | 5.81 | % | 0.73 | % | ||||||||||
Average Balances |
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Loans |
$ | 182,800 | $ | 196,732 | $ | 205,734 | $ | 217,323 | $ | 227,812 | ||||||||||
Assets |
$ | 286,301 | $ | 280,407 | $ | 287,829 | $ | 287,152 | $ | 284,005 | ||||||||||
Stockholders equity |
$ | 15,044 | $ | 16,287 | $ | 16,823 | $ | 20,789 | $ | 23,472 |
(1) | Regulatory capital ratios of CFBank |
10