Cf Bankshares Inc. · NASDAQ:CFBK
Cf Bankshares — Central Federal — Investor Presentation (May 2010)
28 slides from Cf Bankshares's investor presentation, May 20, 2010
Slide 1: Central Federal Corporation 2009
© Central Federal Corporation 2009
Slide 2: Forward-looking statements
This presentation contains "forward-looking statements" which may be identified by the use of such words as "may," "believe," "expect," "anticipate," "should," "plan," "estimate," "predict," "continue" and "potential" or the negative of these terms or other comparable terminology. Examples of forwar
Slide 3: The Relevancy of Our Business Model; Going Forward
The Relevancy of Our Business Model Reality of 2009 Environment and Outcome Changes and Adjustments We Have Already Made Comparison of Reported to Core Earnings Going Forward
Slide 4: Recessions expose weaknesses; Our Brand Promise and Mission
Fact: Recessions expose an economy's and a business's weaknesses. Our Brand Promise and Mission have remained constant; however, changes were made in our operating model based on the 2009 operating environment.
Slide 5: CFBank is a high touch, relationship based community bank
CFBank is a high touch, relationship based business and consumer community bank in the markets we choose to serve, which operates with a sense of urgency to obtain future attractive returns for our stockholders and provide our loyal clients with extraordinary customer service and advice. extraordina
Slide 6: Adjustments made in September 2009
Because of the environment, in September '09 we made adjustments to: Reduction in Product Size, Type and Concentrations, Change of Personnel in Columbus, Credit Approval and Commercial Lending Servicing. Mortgage area expansion in 2009. Added 10 production folks and strengthened our operations. Futu
Slide 7: Historical Interest Rates
Historical Interest Rates (US Treasury Curve) 6.00 5.00 ” SF 12/31/2005 E 3.00 —12/31/2006 é — 12/31/2007 2.00 — 12/31/2008 —12/31/2009 1.00 Imo 3mo 6mo lyr 2yr 3yr Syr 7yr 10yr 20yr 30yr @ centralFederal Corporation
Slide 8: Net interest margin
Net interest margin 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% 2005 2006 2007 2008 2009 @ centralFederal Corporation
Slide 9: Net interest margin remains strong and within a band
Net interest margin remains strong and within a band. CFBank is Interest rate risk neutral. 2009 operating loss was solely correlated to credit losses. Gain on sale of loans from mortgage operations has and will continue to contribute to core earnings. Controllable operating expenses are decreasing
Slide 10: Income (loss) before income taxes
Income (loss) before income taxes $2,000 % = 7m | 2 0 $6000 --$8,000 soso 2005, 2006 2007 2008 2009 @ CentralFederal Corporation
Slide 11: Provision for loan losses
Provision for loan losses $in thousands 2007 2008 2009 @ centralFederal Corporation
Slide 12: Provision for loan losses and income (loss) before taxes
Provision for loan losses income (loss) before income taxes $in thousands 2 8 1 provision forloan losses @ CentralFederal Corporation
Slide 13: Higher capital requirements and adequate reserves
All banks will operate under higher capital requirements going forward. We believe we are adequately reserved for our credit exposure at this time. Loan concentration by size or product has been adjusted. been adjusted. been adjusted. been adjusted. been adjusted. been adjusted. been adjusted. been
Slide 14: Asset balances
Asset balances $300 280 278 $250 — $200 $150 — $in millions $100 -- $50 2005 2006 2007 2008 274 1m Total assets = Loans, net = Commercial, commercial real estate and multi- family loans 2009 @ CentralFederal Corporation
Slide 15: Loans originated since receiving TARP funding
Since receiving the TARP funding CFBank has originated $139.2 million in loans through April 2010. Substantial growth opportunity in our marketplace, subject to capital requirements. Mortgage division was built in 2009 on a variable cost, low-capital basis.
Slide 16: Loan portfolio composition
Loan portfolio composition —s 2005 amos 2009 single pe i —— ae @ CentralFederal Corporation
Slide 17: Deposit Composition
Deposit Composition December 2005 December 2009 ‘savings savings deposits deposits Interest-bearing 1% ‘8% checking Intorest- Non-interest ‘checking 8% joney Market 29% @ centralFederal Corporation
Slide 18: Core deposit increased 38.5%
Core deposit increased 38.5% Time Deposits include CDARS 18 December 31, 2008 December 31, 2008 March 31, 2010 March 31, 2010 Growth Growth ($000) (%) ($000) (%) ($000) (%) Savings deposits $ 10.1 4.9% $ 10.9 4.6% $ 0.8 7.9% Interest-bearing checking 10.2 4.9% 11.0 4.7% 0.8 7.8% Non-interest checkin
Slide 19: Allowance for loan losses
Allowance for loan losses $200 $180 $160 $140 $120 3 2 "commercial, commercial real estate and multi-family loan balance '® allowance for loan losses i $80 5 $60 $40 $20 $o Allowance for loan losses ¢ 8 loan balance 2005 2006 2007 2008 2009 © centralFederal Corporation
Slide 20: Deposit balances
Deposit balances $250 $200 & $150 128 = & $100 $50 $0 + 2005 2006 a 2009 @ CentralFederal Corporation
Slide 21: TARP contributed Sept '09
TARP contributed Sept '09. Pre Tarp Capital 6.2%
Slide 22: Net interest income
Net interest income y $200 5 $180 + $160 + $140 | gaz0 gM commercial, commercial real estate and multi- $30 §£ family loan balance ™ net interest income 2005 2006 2007 +2008 += 2009 @ centralFederal Corporation
Slide 23: Noninterest expense/average assets
Noninterest expense/average ASSELS convotabieand Non-Convaabl * 6.0% +5439 $300 4 5.0% $250 & § 4.0% $200 |, $ gs 5 3.0% $150 8 Fy 2s % 2.0% $100 = 10% | + $50 2 0.0% $0 2005 2006 2007 2008 2009 ‘Noninterest expense/average assets e ‘CentralFederal Corporation
Slide 24: Executive Compensation
Executive Compensation $1,250 1.00% $1,000 0.80% 3 5 ‘$750 0.60 fer executive compensation : i = $500 0.40%.» ofaverageassets $250 0.20% $0 * 0.00% 2005 © 2006 «= 2007, «S 2008» 2009 @ centralFederal Corporation
Slide 25: Core earnings remain strong and are growing
Core earnings remain strong and are Growing. Business owners and consumers are attracted to our business model. The addition of mortgage income in 2009 and forward will provide earnings growth through non-interest income.
Slide 26: Analysis of Reported to Core Earnings
Analysis of Reported to Core Earnings 2009 Adjustments 2009 as Reported ToCore Core Earnings Adjustments Interest and Dividend Income $14,446 $717 $15,163 Delinquent Interest Interest Expense $5,947 $5,947 Net Interest Income $8,499 $717 $9,216 Provision for Provision For Loan Losses $9,928 $9,928 $
Slide 27: Going forward: communication, capital, repay TARP
Commitment to communicate more frequently with stockholders. Capital, Liquidity requirements and industry costs will damper net interest margin banks. Expansion of variable cost mortgage division will create non-interest income. Growth will be directly correlated to capital requirements. Continue to
Slide 28: CentralFederal
@ CentralFederal Corporation