CF Bankshares Q3 profit drops on credit loss provision

Overview

• CF Bankshares Q3 net income falls due to $5.1 mln provision for credit losses

• Pre-provision, pre-tax net revenue rises 33% yr/yr to $7.8 mln

• Net interest margin increases 35bps compared to Q3 2024

Outlook

• Company anticipates net commercial loan growth to accelerate by early 2026

• Company expects expanding saleable residential mortgage loan volumes to add to fee income

• Company's commercial loan production and pipelines remain strong

Result Drivers

• CREDIT LOSSES - Q3 earnings impacted by $7 mln charge-off of a non-customer loan, increasing provision expense by $3.7 mln

• COMMERCIAL LOAN GROWTH - New Commercial Loan production totaled $155 mln YTD, offsetting considerable loan payoffs

• EFFICIENCY IMPROVEMENT - Efficiency ratio improved to 49.8% from 55.3% in Q3 2024

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "buy"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for CF Bankshares Inc is $29.00, about 20% above its October 31 closing price of $23.20

• The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 7 three months ago

Press Release: ID:nPnkkJ9Ra

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.