# CF Bankshares Inc

> Clarifo company profile — qualitative business description generated from
> the company's filings. Financial statements, charts and ratios are
> available on Clarifo (https://www.clarifo.com/en/companies/CF Bankshares Inc).

## Overview

CF Bankshares Inc. is the bank holding company for CFBank, a nationally chartered boutique commercial bank founded in 1892 and operating primarily in Ohio and Indianapolis. The company focuses on closely held businesses, entrepreneurs, and local consumers by combining commercial lending, mortgage lending, treasury management, and retail banking services. Its model emphasizes direct access to decision-makers and individualized service rather than a large-bank branch footprint. Most of the business is generated through CFBank, with the holding company itself conducting little material operating activity outside the bank subsidiary.

## Products & services

• Commercial loans and equipment leases
• Commercial and residential real estate loans
• Treasury management and depository services
• Residential mortgage lending
• Retail and commercial banking services
• Online banking, mobile banking, and remote deposit

- **Commercial Lending** (45%) — Loans and equipment leases to closely held businesses and entrepreneurs for working capital, expansion, and asset financing.
- **Real Estate Lending** (25%) — Commercial and residential real estate loans secured by property in the bank's core Midwest markets.
- **Mortgage Banking** (10%) — Residential mortgage lending and loan sales that generate interest income and noninterest income.
- **Deposit and Treasury Services** (15%) — Retail and business deposits, certificates of deposit, and treasury management services that fund lending and support customer relationships.
- **Retail and Digital Banking** (5%) — Full-service consumer and small-business banking delivered through branches and digital channels.

- Commercial loans and equipment leases
- Commercial and residential real estate loans
- Treasury management and depository services
- Residential mortgage lending
- Retail and commercial banking services
- Online banking, mobile banking, and remote deposit

## Customers

CFBank serves closely held businesses and entrepreneurs that want a relationship-oriented lender with direct access to decision-makers. A large part of the customer base is local and regional, with deposits and loans concentrated in the bank's Ohio and Indiana office markets. The bank also serves retail customers and homeowners through deposit accounts, consumer banking, and residential mortgage products. Customers are attracted by individualized service, speed of execution, and the ability to obtain both lending and treasury/deposit solutions from one institution.

- **Closely held businesses** (primary) — Primary borrowers for commercial loans, equipment leases, and real estate financing because they value flexible credit and direct lender relationships.
- **Entrepreneurs and owner-operators** (primary) — Buy lending and treasury management services to support growth, working capital, and day-to-day cash management.
- **Retail deposit customers** (secondary) — Individuals and households place deposits and certificates of deposit to earn competitive rates and use local banking services.
- **Residential mortgage customers** (secondary) — Homebuyers and homeowners use mortgage lending and related servicing/sale activity for financing and refinancing needs.
- **Commercial real estate borrowers** (secondary) — Businesses and property owners borrow against income-producing or owner-occupied real estate in the bank's core markets.

- Closely held businesses seeking commercial loans and equipment leases
- Entrepreneurs needing relationship-based credit and treasury services
- Commercial real estate borrowers in the bank's metro markets
- Homebuyers and homeowners using residential mortgage products
- Retail deposit customers attracted by competitive rates and local service
- Small businesses that value direct access to lending decisions

## Geography

CFBank operates primarily in five metro markets: Columbus, Cleveland, Cincinnati, and Akron in Ohio, plus Indianapolis, Indiana. Its deposit and loan base is concentrated in the counties surrounding those offices, which makes local economic conditions in Ohio especially important to performance. The bank relies on branch and relationship coverage in these markets rather than a broad national footprint. Because most business is sourced locally, changes in regional competition, employment, property values, and deposit pricing directly affect growth and credit quality.

- **Ohio core markets** (80%) — Primary operating and funding base across Columbus, Cleveland, Cincinnati, and Akron.
- **Indiana core market** (20%) — Indianapolis presence centered on Marion County.

- Core markets are Columbus, Cleveland, Cincinnati, Akron, and Indianapolis
- Most deposits and loans come from the bank's local office footprint
- Ohio concentration makes the company sensitive to Ohio economic conditions
- Indiana exposure is centered on Marion County through the Indianapolis office
- Regional competition is intense because larger statewide and national banks operate nearby
- Local branch presence matters for relationship lending and deposit gathering

## Strategy

CFBank's strategy is to deepen its position in selected Midwest metro markets by combining commercial lending, mortgage lending, and deposit gathering under a relationship banking model. Management emphasizes individualized service, quick decision-making, and ease of doing business as a way to compete against larger banks with more bureaucracy. The bank also uses digital tools such as online banking, mobile banking, and remote deposit to improve convenience without abandoning its local service model. Capital and liquidity management remain central, with management focused on supporting balance-sheet growth while maintaining access to FHLB, FRB, and other funding sources.

- **Grow relationship-based lending in core Midwest markets** (medium-term) — Lending is the main earnings engine, so expanding commercial and real estate loans supports net interest income and deepens customer relationships.
- **Strengthen deposit funding and liquidity** (short-term) — Stable local deposits reduce funding costs and support loan growth while lowering dependence on wholesale borrowings.
- **Differentiate through service and speed** (medium-term) — A boutique model can win business against larger banks if customers value responsiveness and direct access to credit decisions.
- **Use digital channels to improve convenience** (short-term) — Online and mobile capabilities help retain customers and compete for deposits without requiring a large branch network.

- Focus on closely held businesses and entrepreneurs in core metro markets
- Use relationship banking and direct access to decision-makers as differentiation
- Grow commercial, mortgage, and real estate lending in existing markets
- Retain and attract deposits through competitive pricing and customer service
- Expand convenience through online, mobile, and remote deposit tools
- Maintain capital and liquidity flexibility through multiple funding sources

## Risks

The company is exposed to regional economic weakness because most loans and deposits are concentrated in Ohio and nearby Indiana markets. Credit risk is important because borrower repayment and collateral values can deteriorate when local business conditions or real estate markets soften. Funding and liquidity risk also matter because the bank relies on competitive deposit pricing and access to FHLB, FRB, and other borrowings to support growth. Operational and compliance risk are elevated by dependence on third-party vendors, cybersecurity exposure, and bank secrecy/AML requirements, while the holding company depends on dividends from CFBank to service its own obligations.

- **Ohio and Midwest economic concentration** [high] — Most deposits and loans are sourced from a limited set of metro markets, so local recession, unemployment, or property weakness can affect growth and credit performance.
- **Credit deterioration in commercial and real estate lending** [high] — The bank's core earnings depend on interest income from loans and leases, which can be impaired by borrower defaults or declining collateral values.
- **Deposit pricing and funding competition** [medium] — The bank relies on market-competitive rates to attract and retain deposits, so aggressive competition can compress spreads and increase funding costs.
- **Third-party technology and cybersecurity dependence** [high] — A single vendor supports key banking systems, so outages or cyber incidents could disrupt customer service and operations.
- **Regulatory and AML/BSA compliance** [high] — Banks face strict oversight, and deficiencies can lead to fines, restrictions, or reputational damage.
- **Holding company dividend dependence** [medium] — The parent company has limited standalone liquidity and depends on dividends from CFBank to meet obligations and service debt.

- Regional concentration in Ohio increases sensitivity to local economic downturns
- Loan credit quality can weaken if borrowers face stress or collateral values fall
- Deposit competition can raise funding costs and pressure margins
- Reliance on third-party technology vendors creates operational and cybersecurity risk
- BSA/AML and OFAC compliance failures can trigger fines and regulatory actions
- Holding company liquidity depends on dividends from the bank subsidiary

## Accounting

As a bank, CF Bankshares relies on judgment-heavy accounting for loan losses, fair values, and interest income recognition. The company adopted CECL, which requires expected credit loss estimates based on historical experience, current conditions, and forward-looking forecasts; this can materially affect the allowance for credit losses and earnings volatility. Loan sales also create noninterest income, so timing of sale recognition and valuation of loans held for sale can influence reported results. Seasonality is less about consumer demand than about credit, funding, and mortgage origination patterns, which can cause quarter-to-quarter variation in net interest income and noninterest income. The holding company structure also matters because dividends from the bank affect parent-level liquidity and the ability to service subordinated debt and pay shareholder distributions.

- **CECL allowance for credit losses** — Loan loss reserve and earnings volatility
- **Loan sale accounting** — Noninterest income
- **Accrual status and nonperforming assets** — Net interest income and asset quality
- **Dividend restrictions and parent liquidity** — Parent-level cash flow and debt service

- CECL estimates affect the allowance for credit losses and earnings
- Loan origination and sale accounting affects noninterest income timing
- Fair value estimates matter for loans held for sale and securities
- Interest income recognition depends on loan performance and accrual status
- Banking results can fluctuate quarter to quarter with funding and mortgage activity
- Holding company liquidity depends on dividends from the bank subsidiary

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*Last updated: 2026-09-24T11:55:08.751038+00:00*