Cf Bankshares Inc. · NASDAQ:CFBK
Cf Bankshares — Central Federal — Investor Presentation (May 2013)
17 slides from Cf Bankshares's investor presentation, May 16, 2013
Slide 1: CFBank presentation, Thursday, May 16
Thursday, May 16, e CFBANK
Slide 2: Agenda
AGENDA ~ What we said we would do ~ What we have done ~ What we are doing > Financial highlights ~ Q&A “A
Slide 3: What we said we would do
What we said we would do » Restored CFBank and Central Federal Corporation (CFC) to a position of capital strength v Raised $22.5 million ¥ $13.5 million into bank, remainder (less deal expenses) into holding company yv Repaid in full the TARP obligation resulting in $5 million net gain to sharehold
Slide 4: What we said we would do
What we said we would do ~ Improve core earnings vy Added $40 million of net loans during the past two quarters v Increasing Net Interest Income trend during the past two quarters y Reducing funding costs by allowing high cost CD’s to runoff “A
Slide 5: What we said we would do
What we said we would do » Improve Credit Quality v Decreased Nonperforming Assets by 30% v Reduced Criticized Assets by 15% Note: Percentage reduction is for the period from September 30, 2012 to March 31, 2013 “A
Slide 6: What we said we would do
What we said we would do ~ Implemented prudent expense controls v Right sized the organization yv Reduced payroll and operating costs v Renegotiated accounting and legal expenses y Decreased collection expenses by nearly two-thirds “A
Slide 7: What we are doing
What we are doing » Implemented results oriented culture while establishing performance goals for all areas of bank » Repositioning into a full service business bank > Hiring experienced talent: three business bankers, Residential Lending Sales Manager, two loan originators > Introducing new product
Slide 8: Financial Highlights
Financial Highlights John Helmsdoerfer, CFO & EVP “A
Slide 9: Financial Highlights
Financial Highlights > Keys to Success and Earnings Improvements ¥ Quality loan growth v Optimize balance sheet mix v Effectively leveraging capital v Asset quality — continued improvements v Expense control and efficiency improvements yv Balancing risk and returns yv Our trajectory ... “Onward & Up
Slide 10: Growth/Earning Asset
Growth/Earning Asset Growing loans and improving earning asset mix Q3-12 Q4-12 Q1-13 e m Loans (net) = Cash/Investments |
Slide 11: Driving Earnings Through Quality Loan Growth
Driving Earnings Through Quality Loan Growth Loan Balances (as of) Interest Income (Total (In Millions) $166.8 (000’s omitted) $1,710 $153.0 $1,601 ; i ; Q3-2012 Q4-2012 Q1-2013 Q4-2012 Q1-2013 mw Loans (net) = Interest Income (total) S
Slide 12: Capital Strength: Core Capital Ratios
12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% Capital Strength Core Capital Ratios USING CAPITAL — Growing Loans I Core Capital Ratio Required LOSING CAPITAL Shrinking Assets i T Q2-12 maCore Capital Ratio Q3-12 Q4-12 Q1-13 Core Capital Ratio Required S
Slide 13: Improved Asset Quality
Improved Asset Quality Reduction in Nonperforming and Criticized Assets Q3-12 Q4-12 Qi-13 m Criticized Assets Nonperforming Assets
Slide 14: Improving Earnings While Mitigating Risk
Improving Earnings While Mitigating Risk Nonperforming Assets (In Millions) $7.9 $6.4 : Q3-2012 Q4-2012 Q1-2013 m Nonperforming Assets (NPA's) ALLL Coverage 102.1% 82.4% 68.6% ' Q3-2012 Q4-2012 Q1-2013 mALLL as % of NPA's S
Slide 15: Expense Control & Efficiency
Expense Control & Efficiency Significant reduction in average quarterly expense run rate for the quarterly periods “before and including” and “after” the capital raise Before capital raise a | ; 7 ; Q1-12 Q2-12 @3312 Q4-12 Q1-13 mam Noninterest Expense —s-Ave Exp/Per Quarter/"Before Capital Raise" A
Slide 16: Striking the balance of...
Striking the balance of... RETURNS - Increasing Improved core earnings Loan growth Optimizing balance sheet mix RISK - Mitigating Remediating regulatory findings Continued internal control enhancements Incorporated risk management into planning process Enhanced credit processes and reporting
Slide 17: Our trajectory ...
Our trajectory ... ONWARD & UPWARD!! Improved earnings Increased capital strength Earnings asset growth Acting on opportunities us EXCEPT FOR Reduced expenses Reduced nonperforming /criticized assets S