Business
Central Federal Corporation, Parent of CFBank, Announces Record Pre-Tax Earnings for 3rd Quarter 2019
WORTHINGTON/COLUMBUS, Ohio, Oct. 28, 2019 /PRNewswire/ -- Central Federal Corporation (NASDAQ: CFBK) (the "Company") the parent of CFBank, today announced
About this update from Cf Bankshares Inc.
[{"type":"text","content":"WORTHINGTON/COLUMBUS, Ohio, Oct. 28, 2019 /PRNewswire/ -- Central Federal Corporation (NASDAQ: CFBK) (the \"Company\") the parent of CFBank, today announced financial results for the third quarter and year to date ended September 30, 2019.\nThird Quarter Highlights\nPre-tax net income for the quarter more than doubled (up 154%) when compared to the same quarter of 2018. Pre-tax net income is up 124% for the year to date 2019 compared to the same nine month period of 2018. Return on average assets increased to 1.41% for the quarter and return on average equity increased to 20.12%. Diluted earnings per share (EPS) increased to $0.59 for the quarter. Book Value per common share increased year-to-date by $1.49, or 14.2%, to $12.00 per share. Net loans and leases increased 14.5% since December 31, 2018. Net gain on sales of loans increased by 581% for the quarter when compared to the same quarter of 2018 due primarily to the investment in expanding the residential mortgage lending business.The Company also announced separately today that it has entered into an agreement for a $25 million capital raise pursuant to a private placement of common and preferred stock to institutional and other accredited investors. The private placement is currently expected to close by November 1, 2019, subject to customary closing conditions. \nTimothy T. O'Dell, President and CEO, commented, \"While we are pleased with our positive earnings trajectory and results, with pre-tax net income up 124% YTD and our third quarter ROA increasing to 1.41%, we remain focused upon earnings expansion and driving increasing core performance, which includes focusing also on the quality of earnings. We expect increasing scale to provide a positive lift, in addition to our focus on low cost deposits and noninterest fee income. We believe successfully growing low cost deposits, as well as growing our various fee income business segments, will assist in counteracting the current margin pressures. For example, our gain on sale of loans increased nearly 600% for the third quarter (when compared to the same quarter of 2018). Subject to the closing of the private placement that was announced today, we expect to deploy the additional capital to fund our expanding business and loan opportunities and business pipelines, further strengthen our capital ratios, and provide dry powd...