CF Bankshares Q3 profit drops on credit loss provision

CF Bankshares

03/11/2025 14:07

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

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Net Income
$2.30 mln
Q3 Net Interest Income
$13.80 mln
Q3 Net Interest Margin
2.76%


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.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)