Cf Bankshares Inc. · NASDAQ:CFBK
Cf Bankshares — Central Federal — Shareholder Meeting (May 2017)
26 slides from Cf Bankshares's shareholder meeting presentation, May 31, 2017
Slide 1: Annual Stockholders Meeting
Central Federal Corporation Annual Stockholders Meeting Wednesday May 31, 2017 Columbus Cleveland Cincinnati Fairlawn Columbiana County
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS Commentsmadeinthispresentationinclude“forward-lookingstatements”withinthemeaningofthePrivateSecuritiesLitigationReformActof1995andaremadeingoodfaithbyus.Forward-lookingstatementsinclude,butarenotlimitedto:(1)projectionsofrevenues,incomeorloss,earningsorlosspercommonshare,c
Slide 3: Central Federal Corporation
Central Federal Corporation Central Federal Corporation’s common shares are traded on the NASDAQ Capital Market under the symbol “CFBK”. Additional information can be found on our website: www.cfbankonline.com
Slide 4: History
History. Recapitalized a failing Thrift in September2012.Access to Capital Markets–Raised:.$22.5 M–Initial Recap $12.0 M–Preferred Stock(Private Placement in 2014).Significant improvements in operating earnings for the years2013 thru 2016 .Effectively repositioned as Commercial Bank. Converted to a
Slide 5: Recap: How Far We've Come
Recap: How Far We’ve Come Consistent Growth Story. Total Assets: 19.3% 2012-2016 CAGR. Total Loans: 22.8% 2012-2016 CAGR. In 2016 net loans and leases grew 17.1% vs. Peer * growth rate of 8.8%. Total Deposits: 21.3% 2012-2016 CAGR. Noninterest bearing deposits increased approximately $30 million, or
Slide 6: CFBank, Our Business Model
CFBANK, OUR BUSINESS MODEL. Commercial Business Bank. Target Full Service relationships with “privately owned Companies”. Full Complement of products and services for Business& Banking customers. C&I loans, CRE (Construction, Development & OOCRE).Equipment Finance and Leasing. Cash Management and De
Slide 7: Geographic Footprint
GEOGRAPHIC FOOTPRINT Greater Cleveland Region Greater Akron Region Columbiana county region Greater Columbus Region Greater Cincinnati Region CFBank leverages technology vs capital investment in brick and mortar
Slide 8: Board and Management Ownership
BOARD AND MANAGEMENTOWNERSHIP *Amount and Nature of Beneficial Ownership Shares Percent Robert E Hoeweler, Chairman of the Board, Director 237,246 1.5% Thomas P. Ash, Director 87,410 0.5% Edward W Cochran, Director 1,644,667 9.8% James H. Frauenberg, Director 919,833 5.5% John W. Helmsdoerfer, Chief
Slide 9: > 5% Ownership
> 5% OWNERSHIP **Name and Address of Beneficial Owner Amount and Nature of Beneficial Ownership Percent of Common Stock Outstanding Edward W Cochran 1,644,667 9.8% 20030 Marchmont Road Shaker Heights, OH 44122 Elizabeth Park Capital 1,416,624 8.7% 29525 Chagrin Blvd Pepper Pike, OH 44122 MacNealy Ho
Slide 10: Stock Performance vs Peers
Stock Performance vs Peers 1 year Performance of Public Peers Source: SNL Financial; Data as of 3/23/2017
Slide 11: Fee Income Opportunities
FEE INCOME OPPORTUNITIES Key Areas of Focus on Improvement: Residential Mortgage. Incorporating Lead Generation as additional loan source. Added investors FHLB and Freddie Mac to enhance profit margin Treasury Management (T/M) .Achieving solid growth of noninterest bearing deposits (lower funding co
Slide 12: Commercial Loan Mix
Commercial Loan Mix 25% 54% 21% December 31, 2012 Commercial CRE Multi-Family 34% 50% 16% December 31, 2016, Commercial CRE Multi-Family Continued focus on increasing commercial (C&I) lending since recap. Commercial real estate (CRE) as a percentage of portfolio continues to decline. Note: Commercia
Slide 13: Investment Highlights
INVESTMENT HIGHLIGHTS. Our CFBank Growth Strategy includes: Organic Growth (thru added lenders and new Markets).Geographic Expansion. Strategic Acquisitions. Strong Sales and Credit culture plus healthy loan reserves. Infrastructure investment is already in place to support continued growth and expa
Slide 14: Investor Conclusion
INVESTOR CONCLUSION CFBank is well positioned to sustain growth rates and drive increased earnings. LEVERAGE Earnings thru quality loan growth Increase Lending activities by recruiting lenders Enhance Franchise Value thru expanding geographic Footprint Management Team & Board with M&A experience Str
Slide 15: Financial Highlights
FINANCIAL HIGHLIGHTS John Helmsdoerfer, EVP & CFO
Slide 16: Keys to Success
Keys to Success Continued earnings improvement Optimizing balance sheet performance Continued credit quality improvement Capital strength to support growth Achieving operational efficiencies
Slide 17: Net Income Trends
Net Income Trends Net Income (Loss) (1) Includes a $3.2 million credit to income tax expense as a result of the reversal of a deferred tax valuation allowance that occurred in the 4th quarter of 2015.
Slide 18: Earnings Comparison
EARNINGS COMPARISON 2015 2016 Compared to Prior Year Compared to Prior Year Amount $ Var % Var Amount $ Var % Var Inc (Dec) Inc (Dec) Income (loss) before income taxes 1,284 805 168% 2,437 1,153 90% Income tax expense (benefit) (3,193) (3,193)810 4,003 Net income (loss)$ 4,477 3,998 835% 1,627 (2,85
Slide 19: Driving Net Interest Income
Driving Net Interest Income 10,000 Net Interest Income
Slide 20: Optimizing Balance Sheet Growth
Optimizing Balance Sheet Growth 2012 2013 2014 2015 2016 Assets Loans Deposits Interest Bearing Deposits Non-Interest Bearing Deposit Quality loan growth has been critical to our success and driving net income Credit quality continues to improve while we prudently grow the balance sheet
Slide 21: Focus on Growth in Noninterest Bearing Deposits
Focus on Growth in Noninterest Bearing Deposits
Slide 22: Capital Ratios at 12/31/2016
Capital Ratios at 12/31/2016 Total Capital to Risk Weighted Assets Basel III -Minimum capital required Actual Well Capitalized Reg. Standards Phase-In Schedule Fully Phased-In Tier 1 (Core) Capital to Risk Weighted Assets Common Equity Tier 1 capital to Risk Weighted Assets Tier 1 (Core) Capital to
Slide 23: Continued Reduction in Criticized & Classified Loans
Continued Reduction in Criticized & Classified Loans is a Key Focus Criticized and Classified Loans (At December 31)
Slide 24: Credit Quality Continues to Improve
Credit Quality Continues to Improve Nonperforming Loans to Total Loans ALLL to NPLs Net Charge-offs (Recoveries) / Loans Nonperforming loan (NPL’s) trends improved significantly Net charge-off (recoveries) continue to trend favorably Our ALLL ratio to NPL’s has improved significantly Our ALLL as a p
Slide 25: In Summary
In Summary Strong capital position Opportunities exist to improve margin and cost of funds Focus remains on optimizing balance sheet and earnings performance Continued emphasis on improving credit quality Achieve operational efficiencies
Slide 26: Thank you!
Thank you!