EX-99 2 cfbk-20181102xex99.htm EX-99 Exhibit 99 earnings release 93018

                                                                                                                                                     Exhibit 99

CentralFedCORPBlack













 



 

PRESS RELEASE

 

FOR IMMEDIATE RELEASE:

November 2, 2018

For Further Information:

Timothy T. O'Dell, President & CEO



Phone:  614.334.7979



Fax:  614.334.7980





CENTRAL FEDERAL CORPORATION ANNOUNCES 3RD QUARTER 2018 FINANCIAL RESULTS



Worthington/Columbus, Ohio – November 2, 2018 – Central Federal Corporation (NASDAQ: CFBK) (the “Company”) today announced financial results for the third quarter and year to date ended September 30, 2018.



Third Quarter Highlights



·

Net income increased 54% for the quarter, compared to the same quarter in 2017. 

·

EPS (fully diluted) increased by 60% for the quarter to $0.24 compared to $0.15 per share during the same quarter in 2017 (adjusted for a 1.0-for-5.5 reverse stock split effective August 20, 2018).

·

Net loans grew by $87.1 million, or 21.4%, year to date.

·

Assets topped $600 million at September 30, 2018. 

·

Book value at September 30, 2018 of $10.25 per share is up $0.77 year to date from December 31, 2017.

·

Net interest income grew by 33.6% compared to the same quarter of 2017.

·

Credit quality remains strong, and the ratio of ALLL to total loans is 1.40%.





Overview of Results 

The Company’s income before income tax expense for the quarter ended September 30, 2018, totaled $1.3 million, and increased $277,000, or 27.2%, compared to $1.0 million for the quarter ended September 30, 2017. The increase in income before income tax expense was due to a $1.2 million increase in net interest income and a  $448,000 increase in noninterest income, partially offset by a $1.4 million increase in noninterest expense.

Net income for the three months ended September 30, 2018 totaled $1.1 million and increased $370,000, or 54.0%, compared to net income of $685,000 for the three months ended September 30, 2017.  The increase in net income was due to a $1.2 million increase in net interest income,  a $448,000 increase in noninterest income, and a $93,000 decrease in income tax expense, partially offset by  a $1.4 million increase in noninterest expense.  The decrease in income tax expense was due to the reduction in the federal corporate tax rate, effective January 1, 2018, as a result of the Tax Cuts and Jobs Act.






 

 

Net income attributable to common stockholders for the three months ended September 30, 2018, totaled $1.0 million or $0.24 per diluted common share, and increased $558,000, or 118.5%, compared to net income attributable to common stockholders of $471,000, or $0.15 per diluted common share, for the three months ended September 30, 2017. For the three months ended September 30, 2018, the accretion of discount from the Company’s Series B Preferred Stock reduced net income attributable to common stockholders by $26,000.    For the three months ended September 30, 2017, preferred dividends on the Company’s Series B Preferred Stock and accretion of discount reduced net income attributable to common stockholders by $214,000. The decrease in the preferred dividends on the Series B Preferred Stock and accretion of discount is due to the conversion of the Company’s Preferred Stock into shares of Common Stock of the Company, effective October 6, 2017, resulting in the elimination of the preferred dividend payments beginning with the fourth quarter of 2017 of approximately $187,500 quarterly.

Income before income tax expense for the nine months ended September 30, 2018 totaled $3.7 million and increased $1.2 million, or 49.9%, compared to $2.5 million for the nine months ended September 30, 2017. The increase in income before income tax expense was due to a  $3.0 million increase in net interest income and a $1.3 million increase in noninterest income, partially offset by a  $3.1 million increase in noninterest expense.  

Net income for the nine months ended September 30, 2018 totaled $3.0 million and increased $1.3 million, or 81.0%, compared to net income of $1.6 million for the nine months ended September 30, 2017.  The increase in net income was due to a $3.0 million increase in net interest income, a  $1.3 million increase in noninterest income, and a decrease in income tax expenses of $106,000, partially offset by $3.1 million increase in noninterest expense.  As discussed above, the decrease in income tax expense was due to the reduction in the federal corporate tax rate, effective January 1, 2018, as a result of the Tax Cuts and Jobs Act.

Net income attributable to common stockholders for the nine months ended September 30, 2018, totaled $2.9 million or $0.67 per diluted common share, and increased $1.9 million,  or 190.7%, compared to net income attributable to common stockholders of $1.0 million, or $0.31 per diluted common share, for the nine months ended September 30, 2017.  For the nine months ended September 30, 2018, the accretion of discount from the Company’s Series B Preferred Stock reduced net income attributable to common stockholders by $64,000.    For the nine months ended September 30, 2017, preferred dividends on the Company’s Series B Preferred Stock and accretion of discount reduced net income attributable to common stockholders by $643,000. The decrease in the preferred dividends on the Series B Preferred Stock and accretion of discount is due to the conversion of the Company’s Preferred Stock into shares of Common Stock of the Company, effective October 6, 2017, as discussed above.



Timothy T. O’Dell, President and CEO, commented, We continue to be extremely gratified with our ability to attract quality business customers which is helping to drive our strong growth.  Net loans grew by $87 million year to date, with assets topping $600 million.  In addition to balance sheet growth, we believe that we are creating significant franchise value through increases in book value coupled with the expansion of our geographic footprint.  Book value per share increased $0.77, or 8.1%,  year to date, while our second Cincinnati location is expected to open in the Blue Ash (Cincinnati) market by year end.  Also, we are balancing well those investments being made in growth and expansion, including the hiring of experienced business lenders and bankers, with current earnings growth.

 

Net interest income.  Net interest income totaled $4.7 million for the quarter ended September 30, 2018 and increased $1.2 million, or 33.