Cf Bankshares Inc. · NASDAQ:CFBK
Cf Bankshares — Central Federal — IPO Roadshow (June 2012)
36 slides from Cf Bankshares's IPO roadshow presentation, Jun 28, 2012
Slide 1: Central Federal Corporation Investment Overview
Central Federal Corporation Investment Overview
Slide 2: Legal Disclaimer
Legal Disclaimer This Investor Presentation (“Presentation”) has been produced by Central Federal Corporation (“CFC”) solely for use at this investor presentation held in connection with the rights offering and public offering of Common Stock of CFC (together, the “Offering”), and may not be reprodu
Slide 3: Executive Summary
Executive Summary
Slide 4: Why Invest in a Community Bank Today? Which Community Banks Are and Will Be Successful? Why CFBK?
Why Invest in a Community Bank Today? Which Community Banks Are and Will Be Successful? Why CFBK? 4 Executive Summary
Slide 5: Changes at CFBK in the Past Two Years
5 Promoted new CEO and President in May 2010 Engaged two different independent loan review firms and a consulting firm to assess asset quality, workout strategies and performance Began process of reducing nonperforming assets Strengthened allowance for loan losses Re-engineered credit and workout op
Slide 6: Non-Performing Assets
Non-Performing Assets 6 Improved Asset Quality NPAs at 3/31/12 were down 43% from peak levels at 12/31/10
Slide 7: Loan Loss Reserves / Gross Loans
Loan Loss Reserves / Gross Loans 7 Strengthened Reserves
Slide 8: Asset Quality Considerations
8 Asset Quality Considerations • Over the last five quarters, CFBK has reduced its non-performing assets by more than 40% , or $6.3 million • Fresh capital should help accelerate the workout process • Because of the Company’s present situation, lending has largely been curtailed and the existing loa
Slide 9: TARP Discount
9 7,133,000 $ Preferred stock (net of the discount associated with the warrant valuation) 217,000 Value of warrant (included in paid in capital on balance sheet) 609,000 Accrued dividends (included in other liabilities on balance sheet) 7,959,000 Total TARP obligation at 3/31/12 3,000,000 $ Amount t
Slide 10: Pro Forma Capital Ratios
10 TARP CFBK Offering Repurchase CFBK 3/31/2012 Adjustments (1) Adjustments Pro Forma Pro Forma Capital Ratios (dollars in thousands) Consolidated Financial Summary Total Reserves 5,641 $ - $ - $ 5,641 $ Total Goodwill and Intangibles - - Trust Preferred 5,155 - - 5,155 Stockholders' Equity: Preferr
Slide 11: I. Why Invest in a Community Bank Today?
11 I. Why Invest in a Community Bank Today?
Slide 12: Why Invest in a Community Bank Today?
12 Favorable year-over-year dynamics in the real estate market and economy There are numerous attractive potential customers up for grabs, particularly small and medium-sized businesses, executives and professionals Strong business model if derivatives and other complex financial instruments are avo
Slide 13: Public Backlash Against Big Banks
Stock Performance – Last Twelve Months (%) 13 Public Backlash Against Big Banks Management believes: • The financial crisis has caused a severe backlash against the country’s Too Big To Fail banks. • There has been a significant deterioration of the public’s, investors’ and regulators’ perception of
Slide 14: Favorable Economic Trends
14 Favorable Economic Trends • Ohio has posted the fourth largest increase in jobs of all 50 states , on a year-over-year basis from May 2011, according to the Bureau of Labor Statistics • Since May 2011, Ohio has added 75,700 jobs , trailing only Texas, New York and California. • All of CFBank’s ma
Slide 15: Housing Market Stabilizing
Case-Shiller Home Price Index: Cleveland versus National Average Case-Shiller Percent Decline From Market Peak 15 Las Vegas -61.1% Phoenix -51.3% Miami -48.4% Detroit -46.4% Tampa -45.7% Los Angeles -39.8% San Francisco -39.6% San Diego -39.2% Chicago -36.9% Atlanta -36.9% Minneapolis -33.1% Seattle
Slide 16: Top 5 Deposit Market Share Leaders in CFBK's Markets
Akron MSA Columbus MSA East Liverpool MSA 16 Opportunity to Attract Customers & Talent Source: 2011 FDIC Deposit Market Share Data 1. 2. 3. 4. 5. 1. 2. 3. 4. 5. 1. 2. 3. 4. 5. Top 5 Deposit Market Share Leaders in CFBK’s Markets
Slide 17: Industry Valuations Remain at Historic Lows
17 Historic P/BV Multiples Historic P/E Multiples Industry Valuations Remain at Historic Lows Price /Book and Price/LTM Earnings Multiples for SNL Bank Index
Slide 18: II. Which Community Banks Are and Will Be Successful?
II. Which Community Banks Are and Will Be Successful?
Slide 19: Which Community Banks Are and Will Be Successful?
19 Strong, experienced leadership, focused on stakeholder values and balanced risk/returns Directors and management willing to put their own money and relationships on the line Large enough to be relevant, small enough to provide exceptional service and maintain strong long term relationships and co
Slide 20: Strong, Experienced Leadership
20 Strong, Experienced Leadership Timothy T. O’Dell – Proposed Chief Executive Officer Currently the owner of the Chetwood Group, which provides advisory services to a number of privately held enterprises in construction, health care, real estate and professional services Prior to founding Chetwood
Slide 21: Strong, Experienced Leadership
21 Strong, Experienced Leadership Robert E. Hoeweler, Jr. – Proposed Chairman Chief Executive Officer of a diverse group of companies owned by the Hoeweler family, including manufacturing, communication, distribution, business services and venture capital entities Served as Vice Chairman of Winton F
Slide 22: Strong, Experienced Leadership
22 Strong, Experienced Leadership James Howard Frauenberg, II – Proposed Director Principal owner of Addison Holding, LLC which manages investments of private individuals Active in opening new franchises for two retail chains, Five Guys Burgers and Fries and Flip Flops Senior officer with Check Smar
Slide 23: Strong, Experienced Leadership
23 Strong, Experienced Leadership Eloise L. Mackus – Current Chief Executive Officer Named CEO in February 2011, after becoming Interim CEO in May 2010; will continue as General Counsel Joined CFBank in July 2003 as Senior Vice President, General Counsel and Corporate Secretary, and became Executive
Slide 24: Strong, Experienced Leadership
24 Strong, Experienced Leadership Timothy R. Fitzwater – Senior Commercial Officer Joined CFBank in June 2010 39 years of banking experience Previously worked for National City Bank (now PNC) for 36 years, rising to President of the Northeast Region Managed approximately $3 billion in assets and $1
Slide 25: Directors/Management Personally Invested
25 Existing Intended Ownership Purchase Current Directors and Executive Officers $60,940 $258,500 Proposed New Directors and Executive Officers - 2,300,000 Proposed Other Standby Purchasers - 2,200,000 Current Directors, Executive Officers and Standby Purchasers as a Group $60,940 $4,758,500 Directo
Slide 26: Competitive Size & Community Orientation
26 Competitive Size & Community Orientation • CFBK operates four branches in three attractive markets • CFBK is focused on consumers and small businesses in the communities it serves and does not deal in derivatives, capital markets operations or loan syndications • The Company is committed to offer
Slide 27: Market Opportunity: Unemployment Rate By County
Unemployment Rate By County – May 2012 27 CFBank Locations (4) Market Opportunity
Slide 28: Market Opportunity: Household Income
28 Household Income ($000s) Household Income ($000s) Market Opportunity Source: SNL Did not Completed High School High School Diploma Some College Associate Degree Bachelors Degree Graduate Degree < 25 25 < 49 50 < 99 100 < 199 > 200
Slide 29: SUMMA _ KENT STATE
SUMMA _ KENT STATE 8 Health System VICTORIA'S SECRET V7.) AMERICAN’ ELECTRIC POWER
Slide 30: Market Opportunity – Shale Activity
30 Market Opportunity – Shale Activity • CFBank’s Columbiana County branches are located in and serve communities that are deeply impacted by the development of the Utica Shale formation in Eastern Ohio • By 2015, Ohio’s natural gas and crude oil industries are expected to generate more than $34 bil
Slide 31: III. Why CFBK?
III. Why CFBK?
Slide 32: Solid platform for quality growth
32 • Solid platform for quality growth • CFBK listed and traded on NASDAQ • Presence in two metro markets plus two more community branch banks • Akron (Fairlawn HQ) Springboard to Cleveland metro market • Columbus Existing presence with untapped potential Historical banking relationships • Wellsvill
Slide 33: Model Focused on Diversification
33 Model Focused on Diversification • Diversified balance sheet, less reliance on real estate loans, greater focus on non-credit fee income • Expanding on community banking foundation • Focusing on high quality small and middle market businesses, plus the private banking needs of executives and entr
Slide 34: Key Operating Tenets
34 • Committed to building and developing a highly qualified team • Management and the Board will have “skin in the game” • Hands-on management style that stresses accountability for results • Simple plan with a focus on execution • Strong controls and risk management processes • Diversified busines
Slide 35: CFBK: A Unique Opportunity for Creating Stakeholder Value
CFBK: A Unique Opportunity for Creating Stakeholder Value
Slide 36: To request additional information, please contact our Information Agent
To request additional information, please contact our Information Agent, ParaCap Group LLC, at (866) 719-5037