CF BANKSHARES INC.

Previous wording

General. Assets totaled $2.07 billion at September 30, 2024 and increased $7.9 million, or 0.4%, from $2.06 billion at December 31, 2023. The increase was primarily due to a $22.9 million increase in net loans and leases, a $7.3 increase in accrued interest receivable and other assets, and a $3.4 million increase in loans held for sale, partially offset by a $28.1 million decrease in cash and cash equivalents.

Current wording

General. Assets totaled $2.09 billion at March 31, 2025 and increased $29.2 million, or 1.4%, from $2.07 billion at December 31, 2024. The increase was primarily due to a $28.1 million increase in net loans and leases.

Previous wording

Cash and cash equivalents. Cash and cash equivalents totaled $233.5 million at September 30, 2024, and decreased $28.1 million, or 10.7%, from $261.6 million at December 31, 2023. The decrease in cash and cash equivalents was primarily attributed to an increase in loans and leases.

Current wording

Cash and cash equivalents. Cash and cash equivalents totaled $241.0 million at March 31, 2025, and increased $5.7 million, or 2.4%, from $235.3 million at December 31, 2024. The increase in cash and cash equivalents was primarily attributed to the sale of a $5.0 million equity security.

Previous wording

Securities. Securities available for sale totaled $8.7 million at September 30, 2024, and increased $598,000, or 7.4%, compared to $8.1 million at December 31, 2023. The increase was due to the purchases of new securities, partially offset by principal maturities.

Current wording

Securities. Securities available for sale totaled $8.8 million at March 31, 2025, and increased $110,000, or 1.3%, compared to $8.7 million at December 31, 2024.

Previous wording

Loans held for sale. Loans held for sale totaled $5.2 million at September 30, 2024, and increased $3.4 million, or 183.4%, from $1.8 million at December 31, 2023. The increase in loans held for sale was the result of increases in the volume of loans to be sold.

Current wording

Loans held for sale. Loans held for sale totaled $3.5 million at March 31, 2025, and increased $882,000, or 33.6%, from $2.6 million at December 31, 2024. The increase in loans held for sale was the result of increases in the volume of loans to be sold.

Previous wording

Loans and Leases. Net loans and leases totaled $1.72 billion at September 30, 2024, and increased $22.9 million, or 1.4%, from $1.69 billion at December 31, 2023. The increase in net loans and leases from December 31, 2023, was primarily due to a $45.8 million increase in multi-family loan balances, a $14.8 million increase in commercial real estate loan balances, and a $5.0 million increase in home equity lines of credit, partially offset by a $19.2 million decrease in construction loan balances, a $17.1 million decrease in single-family residential loan balances, and a $7.0 million decrease in commercial and industrial (C&I) loan balances.

Current wording

Loans and Leases. Net loans and leases totaled $1.75 billion at March 31, 2025, and increased $28.1 million, or 1.6%, from $1.72 billion at December 31, 2024. The increase in loans and leases balances was primarily due to a $47.7 million increase in commercial real estate loan balances, a $6.4 million increase in construction loan balances, and a $2.5 million increase in home equity lines of credit balances, partially offset by a $23.9 million decrease in single-family residential loan balances, and a $4.1 million decrease in commercial and industrial (C&I) loan balances. The decrease in single-family residential loan balances was due primarily to the sale of two portfolios of loans totaling $18.1 million.

Previous wording

Allowance for Credit Losses on Loans. The allowance for credit losses on loans (“ACL – Loans”) totaled $16.8 million at September 30, 2024, and decreased $85,000, or 0.5%, from $16.9 million at December 31, 2023. The decrease in the ACL-Loans was driven by net charge-offs of $5.4 million, partially offset by the provision for credit losses on loans of $5.3 million. The ratio of the ACL - Loans to total loans was 0.97% at September 30, 2024, compared to 0.99% at December 31, 2023.

Current wording

Allowance for Credit Losses on Loans. The allowance for credit losses on loans (“ACL – Loans”) totaled $17.8 million at March 31, 2025, and increased $329,000, or 1.9%, from $17.5 million at December 31, 2024. The ratio of the ACL - Loans to total loans was 1.01% at March 31, 2025, compared to 1.00% at December 31, 2024.

Previous wording

Individually evaluated loans totaled $12.9 million at September 30, 2024, and increased $9.4 million, or 270.9%, from $3.5 million at December 31, 2023. The increase was primarily due to newly identified commercial loans during the nine months ended September 30, 2024, totaling $12.8 million, partially offset by charge-offs and principal payments. The amount of the ACL - Loans specifically calculated for individually evaluated loans totaled $1.2 million at September 30, 2024 and $697,000 at December 31, 2023.

Current wording

Individually evaluated loans totaled $12.7 million at March 31, 2025, and decreased $80,000, or 0.62%, from $12.8 million at December 31, 2024. The amount of the ACL - Loans specifically calculated for individually evaluated loans totaled $3.4 million at March 31, 2025 and $2.3 million at December 31, 2024.

Previous wording

Nonperforming loans, which include nonaccrual loans and loans at least 90 days past due but still accruing interest, totaled $14.6 million at September 30, 2024, and increased $8.9 million from $5.7 million at December 31, 2023. The increase in nonaccrual loans was primarily driven by three commercial loans, totaling $11.3 million, three commercial equipment leases, totaling $182,000, and two single-family residential loans, totaling $918,000, becoming nonaccrual during the nine months ended September 30, 2024, partially offset by paydowns and approximately $3.3 million in charge-offs on loans that were in nonaccrual at December 31, 2023. The ratio of nonperforming loans to total loans was 0.84% at September 30, 2024 compared to 0.33% at December 31, 2023.

Current wording

Nonperforming loans, which include nonaccrual loans and loans at least 90 days past due but still accruing interest, totaled $14.6 million at March 31, 2025, and decreased $484,000 from $15.0 million at December 31, 2024. The decrease in nonaccrual loans was primarily driven by the transfer of a $524,000 single-family residential loan in nonaccrual at December 31, 2024, to foreclosed assets during the first quarter of 2025. The ratio of nonperforming loans to total loans was 0.82% at March 31, 2025 compared to 0.87% at December 31, 2024.

Previous wording

During the three months ended September 30, 2024, the Company did not modify any loans where the borrower was experiencing financial difficulty. During the nine months ended September 30, 2024, the Company modified one commercial loan, with an amortized cost basis of $4.3 million at September 30, 2024, where the borrower was experiencing financial difficulty. The loan was modified to defer principal and interest payments, increase the interest rate, extend the maturity date and institute a minimum EBITDA covenant. During the three and nine months ended September 30, 2023, the Company modified one commercial loan, totaling $2.9 million, where the borrower was experiencing financial difficulty. The loan was modified to defer principal and interest payments for up to one year. For any period where the payments are deferred, the note will accrue at a higher rate of interest.

Current wording

During the three month periods ended March 31, 2025 and 2024, the Company did not modify any loans where the borrower was experiencing financial difficulty.

Previous wording

The level of total criticized and classified loans increased by $6.2 million, or 46.9%, during the nine months ended September 30, 2024. Loans designated as special mention increased $595,000, or 14.6%, and totaled $4.7 million at September 30, 2024, compared to $4.1 million at December 31, 2023. Loans classified as substandard increased $6.0 million, or 69.8%, and totaled $14.7 million at September 30, 2024, compared to $8.6 million at December 31, 2023. Loans designated as doubtful declined $448,000 and totaled $0 at September 30, 2024, compared to $448,000 and December 31, 2023. See Note 4 to our Consolidated Financial Statements included in this Quarterly Report on Form 10-Q for additional information regarding risk classification of loans.

Current wording

The level of total criticized and classified loans decreased by $3.8 million, or 11.5%, during the three months ended March 31, 2025. Loans designated as special mention decreased $3.4 million, or 18.3%, and totaled $15.1 million at March 31, 2025, compared to $18.5 million at December 31, 2024. Loans classified as substandard decreased $444,000, or 3.1%, and totaled $13.8 million at March 31, 2025, compared to $14.2 million at December 31, 2024. Loans designated as doubtful totaled $385,000 at both March 31, 2025 and December 31, 2024. See Note 4 to our Consolidated Financial Statements included in this Quarterly Report on Form 10-Q for additional information regarding risk classification of loans.

Previous wording

Total past due loans increased $5.7 million and totaled $7.7 million at September 30, 2024, compared to $2.0 million at December 31, 2023. Past due loans totaled 0.4% of the loan portfolio at September 30, 2024, compared to 0.1% at December 31, 2023. See Note 4 to our Consolidated Financial Statements included in this Quarterly Report on Form 10-Q for additional information regarding loan delinquencies.

Current wording

Total past due loans decreased $1.1 million and totaled $11.4 million at March 31, 2025, compared to $12.5 million at December 31, 2024. Past due loans totaled 0.7% of the loan portfolio at March 31, 2025, compared to 0.7% at December 31, 2024. See Note 4 to our Consolidated Financial Statements included in this Quarterly Report on Form 10-Q for additional information regarding loan delinquencies.

Previous wording

Loans that contain interest only payments may present a higher risk than those loans with an amortizing payment that includes periodic principal reductions. Interest only loans are primarily commercial lines of credit secured by business assets and inventory, and consumer home equity lines of credit secured by the borrower’s primary residence. Due to the fluctuations in business assets and inventory of our commercial borrowers, CFBank has increased risk due to a potential decline in collateral values without a corresponding decrease in the outstanding principal. Interest only commercial lines of credit totaled $154.5 million, or 35.7%, of CFBank’s commercial portfolio at September 30, 2024, compared to $147.5 million, or 33.5%, at December 31, 2023. Interest only home equity lines of credit totaled $38.3 million, or 93.6%, of the total home equity lines of credit at September 30, 2024, compared to $33.6 million, or 93.4%, at December 31, 2023.

Current wording

Loans that contain interest only payments may present a higher risk than those loans with an amortizing payment that includes periodic principal reductions. Interest only loans are primarily commercial lines of credit secured by business assets and inventory, and consumer home equity lines of credit secured by the borrower’s primary residence. Due to the fluctuations in business assets and inventory of our commercial borrowers, CFBank has increased risk due to a potential decline in collateral values without a corresponding decrease in the outstanding principal. Interest only commercial lines of credit totaled $132.3 million, or 31.9%, of CFBank’s commercial portfolio at March 31, 2025, compared to $131.2 million, or 31.3%, at December 31, 2024. Interest only home equity lines of credit totaled $41.1 million, or 97.8%, of the total home equity lines of credit at March 31, 2025, compared to $38.8 million, or 98.1%, at December 31, 2024.

Previous wording

Foreclosed assets. The Company held no foreclosed assets at September 30, 2024 or December 31, 2023. The level of foreclosed assets and charges to foreclosed assets expense may change in the future in connection with workout efforts related to foreclosed assets, nonperforming loans and other loans with credit issues.

Current wording

Foreclosed assets. The Company held $524,000 in foreclosed assets at March 31, 2025 compared to none at December 31, 2024. The level of foreclosed assets and charges to foreclosed assets expense may change in the future in connection with workout efforts related to foreclosed assets, nonperforming loans and other loans with credit issues.

Previous wording

Deposits. Deposits totaled $1.75 billion at September 30, 2024, an increase of $1.5 million, or 0.1%, when compared to $1.74 billion at December 31, 2023. The increase when compared to December 31, 2023, is primarily due to a $21.8 million increase in noninterest-bearing account balances, partially offset by a $20.3 million decrease in interest-bearing account balances. The decrease in interest-bearing account balances, when compared to December 31, 2023, included a $14.7 million reduction in brokered deposits.

Current wording

Deposits. Deposits totaled $1.78 billion at March 31, 2025, an increase of $27.9 million, or 1.6%, when compared to $1.76 billion at December 31, 2024. The increase when compared to December 31, 2024 was primarily due to an $18.1 million increase in noninterest-bearing account balances, coupled with a $9.8 million increase in interest-bearing account balances.

Previous wording

At September 30, 2024, approximately 30.2% of our deposit balances exceeded the FDIC insurance limit of $250,000, as compared to approximately 29.2% at December 31, 2023.

Current wording

At March 31, 2025, approximately 31.0% of our deposit balances exceeded the FDIC insurance limit of $250,000, as compared to approximately 29.8% at December 31, 2024.

Previous wording

CFBank is a participant in the Certificate of Deposit Account Registry Service® (CDARS) and Insured Cash Sweep (ICS) programs offered through IntraFi. IntraFi works with a network of banks to offer products that can provide FDIC insurance coverage in excess of $250,000 through these innovative products. Brokered deposits, including CDARS and ICS deposits that qualify as brokered, totaled $425.7 million at September 30, 2024, and decreased $14.7 million, or 3.3%, from $440.4 million at December 31, 2023. Customer balances in the CDARS reciprocal and ICS reciprocal programs, which do not qualify as brokered, totaled $254.4 million at September 30, 2024, and increased $16.6 million, or 7.0%, from $237.8 million at December 31, 2023.

Current wording

CFBank is a participant in the Certificate of Deposit Account Registry Service® (CDARS) and Insured Cash Sweep (ICS) programs offered through IntraFi. IntraFi works with a network of banks to offer products that can provide FDIC insurance coverage in excess of $250,000 through these innovative products. Brokered deposits, including CDARS and ICS deposits that qualify as brokered, totaled $431.3 million at March 31, 2025, and increased $10.5 million, or 2.5%, from $420.8 million at December 31, 2024. Customer balances in the CDARS reciprocal and ICS reciprocal programs, which do not qualify as brokered, totaled $255.5 million at March 31, 2025, and decreased $16.2 million, or 6.0%, from $271.7 million at December 31, 2024.

Previous wording

FHLB advances and other debt. FHLB advances and other debt totaled $108.7 million at September 30, 2024, a decrease of $1.3 million, or 1.2%, when compared to $110.0 million at December 31, 2023. The decrease was primarily due to FHLB fixed rate advance maturities.

Current wording

FHLB advances and other debt. FHLB advances and other debt totaled $92.7 million at March 31, 2025, an increase of $9,000 when compared to $92.7 million at December 31, 2024.

Previous wording

The Holding Company has a $35.0 million credit facility. The credit facility was revolving until May 21, 2024, at which time the outstanding balance was converted to a 10-year term note on a graduated 10-year amortization. Borrowings on the credit facility bear interest at a fixed rate of 3.85% until May 21, 2026, and the interest rate then converts to a floating rate equal to PRIME with a floor of 3.25%. As of September 30, 2024, the Company had an outstanding balance, net of unamortized issuance costs, of $34.7 million on the facility.

Current wording

The Holding Company has a $35.0 million credit facility. The credit facility was revolving until May 21, 2024, at which time the outstanding balance was converted to a 10-year term note on a graduated 10-year amortization. Borrowings on the credit facility bear interest at a fixed rate of 3.85% until May 21, 2026, and the interest rate then converts to a floating rate equal to PRIME with a floor of 3.25%. Effective April 30, 2025, the credit facility was amended to reset the fixed rate to 6.00% until May 21, 2026, at which time the rate will then convert to a floating rate equal to PRIME. As of March 31, 2025, the Company had an outstanding balance, net of unamortized issuance costs, of $34.7 million on the facility.

Previous wording

Stockholders’ equity. Stockholders’ equity totaled $164.0 million at September 30, 2024, an increase of $8.6 million, or 5.6%, from $155.4 million at December 31, 2023. The increase in stockholders’ equity during the nine months ended September 30, 2024 was primarily attributed to net income, partially offset by $1.2 million in dividend payments.

Current wording

Stockholders’ equity. Stockholders’ equity totaled $172.7 million at March 31, 2025, an increase of $4.2 million, or 2.5%, from $168.4 million at December 31, 2024. The increase in stockholders’ equity during the three months ended March 31, 2025 was primarily attributed to net income, partially offset by $453,000 in dividend payments.

Previous wording

Management continues to proactively monitor capital levels and ratios in its on-going capital planning process. CFBank has leveraged its capital to support balance sheet growth and drive increased net interest income. Management remains focused on growing capital through earnings; however, should the need arise, CFBank has additional sources of capital and alternatives it could utilize as further discussedin the “Liquidity and Capital Resources” section in this Quarterly Report on Form 10-Q.

Current wording

Management continues to proactively monitor capital levels and ratios in its on-going capital planning process. CFBank has leveraged its capital to support balance sheet growth and drive increased net interest income. Management remains focused on growing capital through earnings; however, should the need arise, CFBank has additional sources of capital and alternatives it could utilize as further discussed in the “Liquidity and Capital Resources” section in this Quarterly Report on Form 10-Q.

Previous wording

General. Net income for the three months ended September 30, 2024 totaled $4.2 million (or $0.65 per diluted common share)compared to net income of $4.0 million (or $0.62 per diluted common share) for the three months ended September 30, 2023. The increase in net income was primarily the result of a decrease in provision for credit losses expense and an increase in noninterest income, partially offset by an increase in noninterest expense and a decrease in net interest income.

Current wording

General. Net income for the three months ended March 31, 2025 totaled $4.4 million (or $0.68 per diluted common share) compared to net income of $3.1 million (or $0.47 per diluted common share) for the three months ended March 31, 2024. The increase in net income was primarily the result of an increase in net interest income, a decrease in provision for credit losses expense and an increase in noninterest income, partially offset by an increase in noninterest expense.

Previous wording

Net interest income totaled $11.5 million for the quarter ended September 30, 2024 and decreased$207,000, or 1.8%, compared to net interest income of $11.7 million for the quarter ended September 30, 2023. The decrease was primarily due to a $2.0 million, or 12.3%, increase in interest expense, partially offset by a $1.8 million, or 6.5%, increase in interest income. The increase in interest expense was attributed to a 46bps increase in the average cost of funds on interest-bearing liabilities, coupled with a $22.8 million, or 1.5%, increase in average interest-bearing liabilities. The increase in interest income was primarily attributed to a 26bps increase in the average yield on interest-earning assets, coupled with a $40.9 million, or 2.2%, increase in average interest-earning assets outstanding. The net interest margin of 2.41% for the quarter ended September 30, 2024 decreased 9bps compared to the net interest margin of 2.50% for the third quarter of 2023.

Current wording

Net interest income totaled $12.9 million for the quarter ended March 31, 2025 and increased $1.6 million, or 14.4%, compared to net interest income of $11.3 million for the quarter ended March 31, 2024. The increase was primarily due to a $1.5 million, or 8.5%, decrease in interest expense, coupled with a $114,000, or 0.4%, increase in interest income. The decrease in interest expense was attributed to a 37bps decrease in the average cost of funds on interest-bearing liabilities, coupled with a $6.4 million, or 0.4%, decrease in average interest-bearing liabilities. The increase in interest income was primarily attributed to a $40.3 million, or 2.1%, increase in average interest-earning assets outstanding, partially offset by a 10bps decrease in the average yield on interest-earning assets. The net interest margin of 2.64% for the quarter ended March 31, 2025 increased 28bps compared to the net interest margin of 2.36% for the first quarter of 2024.

Previous wording

Interest income totaled $30.0 million for the quarter ended September 30, 2024, and increased $1.8 million, or 6.5%, compared to $28.2 million for the quarter ended September 30, 2023. The increase in interest income was primarily attributed to a 27bps increase in the average yield on loans and leases and loans held for sale, coupled with a $60.5 million, or 3.7%, increase in average loans and leases outstanding and loans held for sale.

Current wording

Interest income totaled $29.2 million for the quarter ended March 31, 2025, and increased $114,000, or 0.4%, compared to $29.1 million for the quarter ended March 31, 2024. The increase in interest income was primarily attributed to a $53.3 million, or 3.1%, increase in average loans and leases outstanding and loans held for sale.

Previous wording

Interest expense totaled $18.5 million for the quarter ended September 30, 2024, and increased $2.0 million, or 12.3%, compared to $16.5 million for the quarter ended September 30, 2023. The increase in interest expense was primarily attributed to a 47bps increase in the average rate of interest-bearing deposits, coupled with a $23.9 million, or 1.7%, increase in average interest-bearing deposits.

Current wording

Interest expense totaled $16.3 million for the quarter ended March 31, 2025, and decreased $1.5 million, or 8.5%, compared to $17.8 million for the quarter ended March 31, 2024. The decrease in interest expense was primarily attributed to a 42bps decrease in the average rate of interest-bearing deposits, partially offset by a $11.6 million, or 0.8%, increase in average interest-bearing deposits.

Previous wording

Provision for credit losses. There was $558,000 million in provision for credit losses expense for the quarter ended September 30, 2024, which reflected a decrease of $635,000, compared to a $1.2 million provision for the quarter ended September 30, 2023. Net charge-offs for the quarter ended September 30, 2024 totaled $3.3 million compared to net charge-offs of $126,000 for the quarter ended September 30, 2023. During the quarter ended September 30, 2024, an individually evaluated loan, totaling $2.9 million, was charged off.

Current wording

Provision for credit losses. There was $582,000 in provision for credit losses expense for the quarter ended March 31, 2025, which reflected a decrease of $655,000, compared to a $1.2 million provision for the quarter ended March 31, 2024. Net charge-offs for the quarter ended March 31, 2025 totaled $23,000 compared to net recoveries of $16,000 for the quarter ended March 31, 2024.

Previous wording

Noninterest income. Noninterest income for the quarter ended September 30, 2024 totaled $1.6 million and increased $305,000, or 23.4%, compared to $1.3 million for the quarter ended September 30, 2023. The increase was primarily due to a $259,000 increase in service charges on deposit accounts and a $188,000 increase on other noninterest income, partially offset by a $192,000 decrease in swap fee income.

Current wording

Noninterest income. Noninterest income for the quarter ended March 31, 2025 totaled $1.2 million and increased $301,000, or 33.3%, compared to $905,000 for the quarter ended March 31, 2024. The increase was primarily due to a $436,000 increase on other noninterest income, partially offset by a $185,000 decrease in net gains on sales of commercial loans.

Previous wording

Noninterest expense. Noninterest expense for the quarter ended September 30, 2024 totaled $7.2 million and increased $466,000, or 6.9%, compared to $6.8 million for the quarter ended September 30, 2023. The increase in noninterest expense was primarily due to a $194,000 increase in other noninterest expense, a $119,000 increase in salaries and employee benefits, and a $91,000 increase in data processing expense. The increase in other noninterest expense was primarily due to a $135,000 increase in fraud losses on customer accounts, coupled with a $53,000 increase in charitable contributions. The increase in salaries and employee benefits was primarily related to an increase in the number of employees, partially offset by lower deferred compensation incentive plan expense.

Current wording

Noninterest expense. Noninterest expense for the quarter ended March 31, 2025 totaled $8.0 million and increased $767,000, or 10.7%, compared to $7.2 million for the quarter ended March 31, 2024. The increase in noninterest expense was primarily due to a $675,000 increase in salaries and employee benefits and a $124,000 increase in professional fee expense. The increase in salaries and employee benefits was primarily driven by higher expense accruals related to staff incentives and deferred compensation incentives in the first quarter of 2025 when compared to the first quarter of 2024.

Previous wording

Income tax expense. Income tax expense was $1.1 million for the quarter ended September 30, 2024, an increase of $93,000, or 9.5%, compared to $984,000 for the quarter ended September 30, 2023. The effective tax rate for the quarter ended September 30, 2024 was approximately 20.4%, as compared to approximately 19.6% for the quarter ended September 30, 2023.

Current wording

Income tax expense. Income tax expense was $1.1 million for the quarter ended March 31, 2025, an increase of $454,000, or 65.3%, compared to $695,000 for the quarter ended March 31, 2024. The effective tax rate for the quarter ended March 31, 2025 was approximately 20.6%, as compared to approximately 18.5% for the quarter ended March 31, 2024.

Previous wording

(1)Average balance is computed using the carrying value of securities. Average yield is computed using the historical amortized cost average balance for available for sale securities.

Current wording

Average balance is computed using the carrying value of securities. Average yield is computed using the historical amortized cost average balance for available for sale securities.

Previous wording

(2)Average yields and interest earned are stated on a fully taxable equivalent basis.

Current wording

Average yields and interest earned are stated on a fully taxable equivalent basis.

Previous wording

(3)Average balance is computed using the recorded investment in loans net of the ACL - Loans and includes nonperforming loans.

Current wording

Average balance is computed using the recorded investment in loans net of the ACL - Loans and includes nonperforming loans.

Previous wording

We believe there have been no significant changes during the nine months ended September 30, 2024 to the items that we disclosed as our critical accounting policies and estimates in Management's Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the year ended December 31, 2023.

Current wording

We believe there have been no significant changes during the three months ended March 31, 2025 to the items that we disclosed as our critical accounting policies and estimates in Management's Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the year ended December 31, 2024.

Previous wording

CFBank’s additional borrowing capacity with the FHLB decreased $11.3 million, or 6.1%, to $172.4 million at September 30, 2024, compared to $183.7 million at December 31, 2023. The decrease was primarily related to a decline in our pledged collateral, which includes single-family residential loans.

Current wording

CFBank’s additional borrowing capacity with the FHLB decreased $23.9 million, or 12.8%, to $162.4 million at March 31, 2025, compared to $186.3 million at December 31, 2024. The decrease was primarily related to a decline in our pledged collateral, which includes single-family residential loans.

Previous wording

CFBank’s additional borrowing capacity at the FRB increased $1.9 million, or 1.3%, to $138.1 million at September 30, 2024 from $136.2 million at December 31, 2023. CFBank is eligible to participate in the FRB’s primary credit program, providing CFBank access to short-term funds at any time, for any reason, based on the collateral pledged.

Current wording

CFBank’s additional borrowing capacity at the FRB decreased $2.1 million, or 1.7%, to $125.3 million at March 31, 2025 from $127.4 million at December 31, 2024. CFBank is eligible to participate in the FRB’s primary credit program, providing CFBank access to short-term funds at any time, for any reason, based on the collateral pledged.

Previous wording

CFBank relies on competitive interest rates, customer service, and relationships with customers to retain deposits. The FDIC provides deposit insurancecoverage up to $250,000 per depositor.

Current wording

CFBank relies on competitive interest rates, customer service, and relationships with customers to retain deposits. The FDIC provides deposit insurance coverage up to $250,000 per depositor.

Previous wording

Currently, annual debt service on the subordinated debentures underlying the Company’s trust preferred securities is approximately $434,000. Prior to July 1, 2023, the subordinated debentures had a variable rate of interest, which reset quarterly, equal to the three-month London Interbank Offered Rate (LIBOR) plus 2.85%. Effective July 1, 2023, the rate of interest on the subordinated debentures resets quarterly to the three-month Secured Overnight Financing Rate (SOFR) plus 3.112%, which was 7.72% at September 30, 2024.

Current wording

Currently, annual debt service on the subordinated debentures underlying the Company’s trust preferred securities is approximately $382,000. Prior to July 1, 2023, the subordinated debentures had a variable rate of interest, which reset quarterly, equal to the three-month London Interbank Offered Rate (LIBOR) plus 2.85%. Effective July 1, 2023, the rate of interest on the subordinated debentures resets quarterly to the three-month Secured Overnight Financing Rate (SOFR) plus 3.112%, which was 7.41% at March 31, 2025.

Previous wording

Currently, the annual debt service on the Company’s $10 million of fixed-to-floating rate subordinated notes is approximately $970,000. The subordinated notes initially bore a fixed rate of 7.00% until December 2023, and now the interest rate resets quarterly to a rate equal to the current three-month SOFR plus 4.402%, which was 9.01% at September 30, 2024.

Current wording

Currently, the annual debt service on the Company’s $10 million of fixed-to-floating rate subordinated notes is approximately $870,000. The subordinated notes initially bore a fixed rate of 7.00% until December 2023, and now the interest rate resets quarterly to a rate equal to the current three-month SOFR plus 4.402%, which was 8.70% at March 31, 2025.

Previous wording

The Holding Company has a $35.0 million credit facility with a third-party bank. The credit facility was revolving until May 21, 2024, at which time the outstanding balance was converted to a 10-year term note on a graduated 10-year amortization. Borrowings on the credit facility bear interest at a fixed rate of 3.85% until May 21, 2026, and the interest rate then converts to a floating rate equal to PRIME with a floor of 3.75%. At September 30, 2024, the Company had an outstanding balance, net of unamortized debt issuance costs, of $34.7 million on the facility.

Current wording

The Holding Company has a $35.0 million credit facility with a third-party bank. The credit facility was revolving until May 21, 2024, at which time the outstanding balance was converted to a 10-year term note on a graduated 10-year amortization. Borrowings on the credit facility bear interest at a fixed rate of 3.85% until May 21, 2026, and the interest rate then converts to a floating rate equal to PRIME with a floor of 3.25%. Effective April 30, 2025, the credit facility was amended to reset the fixed rate to 6.00% until May 21, 2026, at which time the rate will then convert to a floating rate equal to PRIME. At March 31, 2025, the Company had an outstanding balance, net of unamortized debt issuance costs, of $34.7 million on the facility.