CF Bankshares Extends Net Interest Margin Expansion
Net interest income was $14.9 million in the third quarter as the margin reached 2.96% and net income was $6.0 million.
CF Bankshares Inc. (CFBK), parent of CFBank, National Association, reported net interest income of $14.9 million for the third quarter ended September 30, 2026, up 0.7% from $14.8 million in the prior quarter and 8.4% from $13.8 million a year earlier.
Net interest margin expanded 3 bps to 2.96% from 2.93% in the second quarter, after a 24 bps expansion in that prior quarter, and was 20 bps above 2.76% in the third quarter of 2025. The company said the sequential rise in net interest income was primarily due to a $92,000, or 0.3%, increase in interest income and a $13,000, or 0.1%, decrease in interest expense. Average loans and leases rose $37.4 million, or 2.1%, and the average yield on interest-earning assets increased 5 bps. The average rate paid on interest-bearing liabilities fell 7 bps to 3.72% from 3.79%, after a 15 bps increase in the prior quarter.
Net income was $6.0 million, or $0.91 a share, compared with $5.9 million, or $0.90 a share, in the second quarter. Pre-provision, pre-tax net revenue was $7.9 million. Return on average equity was 12.22% and return on average assets was 1.14%.
Gross loans and leases were $1.9 billion at September 30, up $39.3 million, or 2.2%, from June 30. Commercial real estate balances rose $31.9 million and construction $11.4 million; C&I declined $932,000. Commercial loan fundings were $79 million in the quarter, producing $42 million of net commercial loan growth, versus $135 million of fundings and $52 million of net commercial growth in the second quarter. Year-to-date commercial fundings totaled $357 million with $129 million of net commercial loan growth.
Deposits were $1.9 billion, up $28.5 million, or 1.6%, from June 30, led by a $29.5 million increase in interest-bearing accounts and a $922,000 decrease in noninterest-bearing balances, reversing the prior quarter’s $33 million of noninterest-bearing growth. FHLB advances and other debt were $99.2 million.
Provision for credit losses was $551,000, down from $944,000 in the second quarter. Net charge-offs were $966,000, or 0.21% annualized of average loans, versus net recoveries of $106,000 in the prior quarter; the bank said the credits had already been fully reserved and had no impact on third-quarter provision expense. Nonaccrual loans were $20.4 million, or 1.10% of loans, down $478,000 from $20.8 million at June 30. Loans 30 days or more past due rose to $30.8 million from $20.4 million, primarily a $6.7 million C&I loan and a $5.9 million commercial real estate loan in one relationship; both were brought current after quarter-end. The allowance for credit losses on loans was $19.0 million, or 1.03% of loans.
Noninterest income was $1.8 million. Customer fees, including Treasury Management, increased $71,000, or 8%, from the prior quarter and $660,000, or 32%, year-to-date versus the same period in 2025. Noninterest expense rose $426,000, or 5.1%, to $8.8 million, including a $264,000 increase in recruiting expenses tied to Commercial Banking team expansion, plus one-time expenses of $111,000 in signing bonuses and $198,000 in recruiting fees. The efficiency ratio was 52.45%, versus 50.40% in the second quarter.
Tier 1 leverage was 11.99% and the total capital ratio was 14.69%. Book value per share was $29.83, up 10.5% year-over-year. The board declared a $0.09 cash dividend on October 1, paid October 20.
President and CEO Timothy T. O’Dell said commercial banking teams had generated over $350 million in new commercial loan fundings year-to-date and that pipelines of commercial loan and deposit opportunities remained strong entering the fourth quarter. The company said it expects its rate of growth to continue accelerating as it deploys more available capital into loan relationships.
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