Document And Entity Information
Document And Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Mar. 08, 2021 | Jun. 30, 2020 | |
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2020 | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Transition Report | false | ||
Entity File Number | 0-25045 | ||
Entity Registrant Name | CF BANKSHARES INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 34-1877137 | ||
Entity Address, Address Line One | 7000 N. High Street | ||
Entity Address, City or Town | Worthington | ||
Entity Address, State or Province | OH | ||
Entity Address, Postal Zip Code | 43085 | ||
City Area Code | 614 | ||
Local Phone Number | 334-7979 | ||
Title of 12(b) Security | Common Stock, par value $.01 per share | ||
Trading Symbol | cfbk | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 68.3 | ||
Documents Incorporated By Reference | Portions of the registrant’s Annual Report to Stockholders for its fiscal year ended December 31, 2020, included as Exhibit 13.1 to this Form 10-K, and its Proxy Statement for the Annual Meeting of Stockholders to be held on June 2, 2021, are incorporated herein by reference into Parts II and III, respectively, of this Form 10-K. | ||
Entity Central Index Key | 0001070680 | ||
Amendment Flag | false | ||
Common Stock [Member] | |||
Entity Common Stock, Shares Outstanding | 5,385,256 | ||
Non-Voting Common Stock [Member] | |||
Entity Common Stock, Shares Outstanding | 1,260,700 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
ASSETS | ||
Cash and cash equivalents | $ 221,594 | $ 45,879 |
Interest-bearing deposits in other financial institutions | 100 | 100 |
Securities available for sale | 8,701 | 8,174 |
Equity securities | 5,000 | |
Loans held for sale, at fair value | 283,165 | 135,711 |
Loans and leases, net of allowance of $17,022 and $7,138 | 895,344 | 663,303 |
FHLB and FRB stock | 5,847 | 4,008 |
Premises and equipment, net | 3,730 | 3,991 |
Operating lease right-of-use assets | 1,387 | 1,780 |
Bank owned life insurance | 17,490 | 5,345 |
Accrued interest receivable and other assets | 34,637 | 12,254 |
Total assets | 1,476,995 | 880,545 |
Deposits | ||
Noninterest bearing | 198,675 | 115,530 |
Interest bearing | 914,395 | 630,793 |
Total deposits | 1,113,070 | 746,323 |
FHLB advances and other debt | 214,426 | 29,017 |
Advances by borrowers for taxes and insurance | 1,029 | 929 |
Operating lease liabilities | 1,532 | 1,960 |
Accrued interest payable and other liabilities | 21,884 | 6,846 |
Subordinated debentures | 14,844 | 14,806 |
Total liabilities | 1,366,785 | 799,881 |
Commitments and contingent liabilities | ||
Stockholders' equity | ||
Common stock | 54 | 54 |
Additional paid-in capital | 87,637 | 86,903 |
Retained earnings (accumulated deficit) | 26,479 | (2,932) |
Accumulated other comprehensive income | 96 | 28 |
Treasury stock, at cost; 96,098 shares of common stock at December 31, 2020 and 32,940 shares of common stock at December 31, 2019 | (4,069) | (3,389) |
Total stockholders' equity | 110,210 | 80,664 |
Total liabilities and stockholder's equity | 1,476,995 | 880,545 |
Non-Voting Common Stock [Member] | ||
Stockholders' equity | ||
Common stock | 13 | |
Total stockholders' equity | 13 | |
Series B Preferred Stock [Member] | ||
Stockholders' equity | ||
Preferred stock | ||
Series C Preferred Stock [Member] | ||
Stockholders' equity | ||
Preferred stock |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Allowance for loans and leases | $ 17,022 | $ 7,138 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 9,090,909 | 9,090,909 |
Common stock, shares issued | 5,399,702 | 5,409,394 |
Treasury stock, shares | 96,098 | 32,940 |
Non-Voting Common Stock [Member] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 1,260,700 | 1,260,700 |
Common stock, shares issued | 1,260,700 | 0 |
Series B Preferred Stock [Member] | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 480,000 | 480,000 |
Preferred stock, shares issued | 0 | 0 |
Series C Preferred Stock [Member] | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 12,607 | 12,607 |
Preferred stock, shares issued | 0 | 12,337 |
Consolidated Statements Of Inco
Consolidated Statements Of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Interest and dividend income | |||
Loans and leases, including fees | $ 41,851 | $ 33,778 | |
Securities | 161 | 172 | |
FHLB and FRB stock dividends | 199 | 207 | |
Federal funds sold and other | 175 | 947 | |
Total interest and dividend income | 42,386 | 35,104 | |
Interest expense | |||
Deposits | 11,911 | 11,684 | |
FHLB advances and other debt | 1,729 | 704 | |
Subordinated debentures | 938 | 1,016 | |
Total interest expense | 14,578 | 13,404 | |
Net interest income | 27,808 | 21,700 | |
Provision for loan and lease losses | 10,915 | ||
Net interest income after provision for loan and lease losses | 16,893 | 21,700 | |
Noninterest income | |||
Service charges on deposit accounts | 633 | 553 | |
Net gains on sales of loans | 58,366 | 10,767 | |
Earnings on bank owned life insurance | 145 | 142 | |
Swap fee income | 651 | 162 | |
Other | 198 | 96 | |
Total noninterest income | 59,993 | 11,720 | |
Noninterest expense | |||
Salaries and employee benefits | 21,987 | 11,170 | |
Occupancy and equipment | 1,077 | 965 | |
Data processing | 1,812 | 1,350 | |
Franchise and other taxes | 740 | 454 | |
Professional fees | 5,070 | 1,855 | |
Director fees | 648 | 547 | |
Postage, printing and supplies | 172 | 225 | |
Advertising and marketing | 5,624 | 2,829 | |
Telephone | 219 | 201 | |
Loan expenses | 304 | 232 | |
Foreclosed assets, net | (9) | ||
Depreciation | 381 | 316 | |
FDIC premiums | 588 | 529 | |
Regulatory assessment | 181 | 165 | |
Other insurance | 106 | 99 | |
Other | 1,694 | 451 | |
Total noninterest expense | 40,603 | 21,379 | |
Loss before income tax and before undistributed subsidiary income | 36,283 | 12,041 | |
Income tax expense | 6,675 | 2,440 | |
Net income | 29,608 | 9,601 | |
Accretion of discount and value of warrants exercised related to Series B preferred stock | [1] | 219 | |
Earnings allocated to participating securities (Series C preferred stock) | [2] | (2,280) | (430) |
Net income attributable to common stockholders | $ 27,328 | $ 9,390 | |
Earnings per common share: | |||
Basic | $ 4.53 | $ 2.05 | |
Diluted | $ 4.47 | $ 2.03 | |
[1] | All outstanding warrants expired on July 15, 2019. | ||
[2] | All 12,607 outstanding shares of Series C preferred stock were converted into a total of 1,260,700 shares of the Company's Non-Voting Common Stock effective as of the close of business on May 28, 2020. |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Consolidated Statements Of Comprehensive Income [Abstract] | ||
Net income | $ 29,608 | $ 9,601 |
Other comprehensive income: | ||
Unrealized holding gains arising during the period related to investment securities available for sale, net of tax of $18 and $27: | 68 | 101 |
Net current-period other comprehensive income | 68 | 101 |
Comprehensive income | $ 29,676 | $ 9,702 |
Consolidated Statements Of Co_2
Consolidated Statements Of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Consolidated Statements Of Comprehensive Income [Abstract] | ||
Unrealized holding gains (losses) arising during the period related to securities available for sale, tax | $ 18 | $ 27 |
Consolidated Statements Of Chan
Consolidated Statements Of Changes In Stockholders' Equity - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings (Accumulated Deficit) [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] | Non-Voting Common Stock [Member] | Total |
Balance at Dec. 31, 2018 | $ 44 | $ 61,706 | $ (12,752) | $ (73) | $ (3,366) | $ 45,559 | |
Net income | 9,601 | 9,601 | |||||
Other comprehensive income | 101 | 101 | |||||
Issuance of stock based incentive plan shares, net of forfeitures | 1 | (1) | |||||
Restricted stock expense, net of forfeitures | 527 | 527 | |||||
Acquisition of treasury shares surrendered upon vesting of restricted stock for payment of taxes | (23) | (23) | |||||
Exercise of warrants to common stock | 1 | 1,257 | 1,258 | ||||
Accretion of discount and value of warrants exercised | (219) | 219 | |||||
Proceeds from the issuance of shares from the preferred stock private placement, net of offering expenses | 14,000 | 14,000 | |||||
Proceeds from the issuance of shares from the common stock private placement, net of offering expenses | 8 | 9,633 | 9,641 | ||||
Balance at Dec. 31, 2019 | 54 | 86,903 | (2,932) | 28 | (3,389) | 80,664 | |
Net income | 29,608 | 29,608 | |||||
Other comprehensive income | 68 | 68 | |||||
Issuance of stock based incentive plan shares, net of forfeitures | |||||||
Restricted stock expense, net of forfeitures | 711 | 711 | |||||
Stock options exercised | 36 | 36 | |||||
Acquisition of treasury shares surrendered upon vesting of restricted stock for payment of taxes | (32) | (32) | |||||
Purchase of treasury shares | (648) | (648) | |||||
Conversion of 12,607 shares of Series C preferred stock to 1,260,700 shares of non-voting common stock | (13) | 13 | |||||
Dividends declared ($0.03 per share) | (197) | (197) | |||||
Balance at Dec. 31, 2020 | $ 54 | $ 87,637 | $ 26,479 | $ 96 | $ (4,069) | $ 13 | $ 110,210 |
Consolidated Statements Of Ch_2
Consolidated Statements Of Changes In Stockholders' Equity (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Issuance of stock based incentive plan, shares | 19,660 | 73,738 |
Treasury shares, acquisition | 2,158 | 1,705 |
Treasury shares, purchase | 61,000 | |
Dividends declared, per share | $ 0.03 | |
Preferred Stock [Member] | ||
Issuance of shares from private placement | 12,337 | |
Offering expenses | $ 805 | |
Common Stock [Member] | ||
Issuance of shares from private placement | 849,615 | |
Offering expenses | $ 554 | |
Series C Preferred Stock [Member] | ||
Conversion of Series C preferred stock, shares | 12,607 | |
Non-Voting Common Stock [Member] | ||
Non-voting common stock, shares | 1,260,700 |
Consolidated Statements Of Ch_3
Consolidated Statements Of Changes Of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Consolidated Statements Of Changes Of Cash Flows [Abstract] | ||
Net income | $ 29,608 | $ 9,601 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Provision for loan and lease losses | 10,915 | |
Depreciation | 381 | 316 |
Amortization, net | (1,510) | (96) |
Deferred income tax (benefit) | (3,045) | (187) |
Originations of loans held for sale | (2,229,042) | (726,208) |
Proceeds from sale of loans held for sale | 2,130,712 | 625,509 |
Net gains on sales of loans | (58,366) | (10,767) |
Write-down of premises and equipment | 265 | |
Gain on sale of foreclosed assets | (12) | |
Earnings on bank owned life insurance | (145) | (142) |
Stock-based compensation expense | 711 | 527 |
Net change in: | ||
Accrued interest receivable and other assets | (18,451) | (3,412) |
Operating lease right-of-use asset | 393 | 404 |
Operating lease right-of-use liability | (428) | (408) |
Accrued interest payable and other liabilities | 14,537 | 1,337 |
Net cash used by operating activities | (123,465) | (103,538) |
Cash flows from investing activities | ||
Available-for-sale securities: Maturities, prepayments and calls | 5,091 | 3,576 |
Available-for-sale securities: Purchases | (5,552) | (1,494) |
Purchase of equity securities | (5,000) | |
Purchase of bank owned life insurance | (12,000) | |
Loan and lease originations and payments, net | (241,102) | (118,467) |
Proceeds from the sale of loans | 1,439 | 6,547 |
Additions to premises and equipment | (385) | (443) |
Purchase of FRB and FHLB Stock | (1,839) | (532) |
Purchase of other investments | (1,000) | (734) |
Return of investment- joint ventures | 594 | 95 |
Proceeds from the sale of foreclosed assets | 50 | |
Net cash used by investing activities | (259,754) | (111,402) |
Cash flows from financing activities: | ||
Net change in deposits | 366,747 | 166,537 |
Proceeds from FHLB advances and other debt | 575,137 | 766,700 |
Repayments on FHLB advances and other debt | (452,224) | (764,700) |
Net change in warehouse line of credit | 70,013 | |
Net change in advances by borrowers for taxes and insurance | 100 | 102 |
Cash dividends paid on common stock | (195) | |
Proceeds from exercise of stock options | 36 | |
Net proceeds from issuance of Series C preferred stock in private placement | 14,000 | |
Net proceeds from issuance of common stock in private placement | 9,641 | |
Exercise of warrants to common stock | 1,258 | |
Acquisition of treasury shares surrendered upon vesting of restricted stock for payment of taxes | (32) | (23) |
Purchase of treasury shares | (648) | |
Net cash from financing activities | 558,934 | 193,515 |
Net change in cash and cash equivalents | 175,715 | (21,425) |
Beginning cash and cash equivalents | 45,879 | 67,304 |
Ending cash and cash equivalents | 221,594 | 45,879 |
Supplemental cash flow information: | ||
Interest paid | 14,296 | 13,427 |
Income tax paid | 10,300 | 2,510 |
Supplemental noncash disclosures: | ||
Loans transferred from held for sale to portfolio | 1,725 | 657 |
Investment payable on limited liability corporation and limited partnership | 500 | 1,170 |
Transfer of other liability to operating lease right-of-use asset | 184 | |
Initial recognition of operating right-of-use lease asset | 2,368 | |
Initial recognition of operating right-of-use lease liability | 2,368 | |
Loans held for sale funded with other debt | (7,517) | $ 7,517 |
Dividends payable | $ 2 |
Summary Of Significant Accounti
Summary Of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Summary Of Significant Accounting Policies [Abstract] | |
Summary Of Significant Accounting Policies | NO TE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations and Principles of Consolidation : The consolidated financial statements include CF Bankshares, Inc. (the “Holding Company”) and its wholly-owned subsidiary, CFBank, National Association (“CFBank”). On December 1, 2016, CFBank converted from a federal savings institution to a national bank. Prior to December 1, 2016, the Holding Company was a registered savings and loan holding company. Effective as of December 1, 2016 and in conjunction with the conversion of CFBank to a national bank, the Holding Company became a registered bank holding company and elected financial holding status with the FRB . Effective as of July 27, 2020, the Company changed its name from Central Federal Corporation to CF Bankshares Inc. The Holding Company and CFBank are sometimes collectively referred to herein as the “Company”. Intercompany transactions and balances are eliminated in consolidation. CFBank provides financial services through its six full-service banking offices in Worthington, Fairlawn, Glendale, Blue Ash, Calcutta, and Wellsville, Ohio, and through its loan production office in Columbus, Ohio and its agency office in Woodmere, Ohio. Its primary deposit products are commercial and retail checking, savings, money market and term certificate accounts. Its primary lending products are commercial and commercial real estate, residential mortgages and installment loans. There are no significant concentrations of loans to any one industry or customer segment. However, our customers’ ability to repay their loans is dependent on general economic conditions and the real estate values in their geographic areas. Use of Estimates : To prepare financial statements in conformity with U.S. generally accepted accounting principles (GAAP), management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and actual results could differ. The allowance for loan and lease losses (ALLL), deferred tax assets and fair values of financial instruments are particularly subject to change. Cash Flows : Cash and cash equivalents include cash, deposits with other financial institutions with maturities fewer than 90 days and federal funds sold. Net cash flows are reported for customer loan and deposit transactions, interest-bearing deposits in other financial institutions and borrowings with original maturities under 90 days. Cash in Excess of FDIC Limits: At December 31, 2020, the Company’s cash accounts exceeded federally insured limits by approximately $215.7 million. Approximately $203.0 million of that amount was held by either the Federal Reserve Bank or the Federal Home Loan Bank of Cincinnati, which is not federally insured. Interest-Bearing Deposits in Other Financial Institution : Interest-bearing deposits in other financial institutions mature in April, 2022 and are carried at cost. As of December 31, 2020 and December 31, 2019, there was $100 in an interest-bearing deposit in other financial institutions. Securities : Debt securities are classified as available for sale when they might be sold before maturity. Securities available for sale are carried at fair value, with unrealized holding gains and losses reported in other comprehensive income. Interest income includes amortization of purchase premium or accretion of discount. Premiums and discounts on securities are amortized or accreted on the level-yield method, except for mortgage-backed securities and collateralized mortgage obligations where prepayments are anticipated based on industry payment trends. Gains and losses on sales are recorded on the trade date and determined using the specific identification method. Management evaluates securities for other-than-temporary impairment (OTTI) at least on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or will more likely than not be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: 1) OTTI related to credit loss, which must be recognized in the income statement and 2) OTTI related to other factors, which is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. For equity securities, the entire amount of impairment is recognized through earnings. Equity Securities : Equity securities without a readily determinable fair value are held at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. For equity securities measured under the practicability exception under Accounting Standards Update (“ASU”) 2016-01, the Company performs a qualitative assessment for equity securities without readily determinable fair values considering impairment indicators to evaluate whether an impairment exists. If an impairment exists, the Company will recognize a loss based on the difference between carrying value and fair value. Loans Held for Sale : Mortgage loans originated and intended for sale in the secondary market are carried at fair value, as determined by outstanding commitments from investors. Mortgage loans held for sale are generally sold with servicing rights released. The carrying value of mortgage loans sold is reduced by the amount allocated to the servicing rights when mortgage loans held for sale are sold with servicing rights retained. Loans originated as construction loans, that were subsequently transferred to held for sale, are carried at the lower of cost or market. Gains and losses on sales of mortgage loans are based on the difference between the selling price and the carrying value of the related loan sold. Loans and Leases : Loans and leases that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding, adjusted for purchase premiums and discounts, deferred loan fees and costs and an allowance for loan and lease losses (ALLL). Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the level yield method without anticipating prepayments. The accrual of interest income on all classes of loans, except other consumer loans, is discontinued and the loan is placed on nonaccrual status at the time the loan is 90 days delinquent unless the loan is well-secured and in process of collection. Other consumer loans are typically charged off no later than 90 days past due. Past due status is based on the contractual terms of the loan for all classes of loans. In all cases, loans are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. Nonaccrual loans and loans past due 90 days still on accrual include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. Commercial, multi-family residential real estate loans and commercial real estate loans placed on nonaccrual status are individually classified as impaired loans. All interest accrued but not received for each loan placed on nonaccrual is reversed against interest income in the period in which it is placed in a nonaccrual status. Interest received on such loans is accounted for on the cash-basis or cost recovery method, until qualifying for return to accrual status. Loans are considered for return to accrual status provided all the principal and interest amounts that are contractually due are brought current, there is a current and well documented credit analysis, there is reasonable assurance of repayment of principal and interest, and the customer has demonstrated sustained, amortizing payment performance of at least six months. Concentration of Credit Risk : Most of the Company’s primary business activity is with customers located within the Ohio counties of Franklin, Hamilton, Cuyahoga, Summit, Columbiana and contiguous counties. Therefore, the Company’s exposure to credit risk can be affected by changes in the economies within these counties. Although these counties are the Company’s primary market area for loans, the Company originates residential and commercial real estate loans throughout the United States. Allowance for Loan and Lease Losses (ALLL) : The ALLL is a valuation allowance for probable incurred credit losses. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. Management estimates the allowance balance required using past loan loss experience, the nature and volume of the portfolio, information about specific borrower situations and estimated collateral values, economic conditions, and other factors. Allocations of the allowance may be made for specific loans, but the entire allowance is available for any loan that, in management’s judgment, should be charged off. The allowance consists of specific and general components. The specific component relates to loans that are individually classified as impaired. A loan is impaired when, based on current information and events, it is probable that CFBank will be unable to collect all amounts due according to the contractual terms of the loan agreement. Loans within any loan class for which the terms have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings (TDRs) and classified as impaired. Factors considered by management in determining impairment for all loan classes include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. All substandard loans within the commercial, multi-family residential, commercial real estate and construction segments are individually evaluated for impairment when they are 90 days past due, or earlier than 90 days past due if information regarding the payment capacity of the borrower indicates that payment in full according to the loan terms is doubtful. If a loan is impaired, a portion of the allowance is allocated so that the loan is reported, net, at the present value of estimated future cash flows using the loan’s existing rate, or at the fair value of collateral, less costs to sell, if repayment is expected solely from the collateral. Large groups of smaller balance homogeneous loans, such as consumer and single-family residential real estate loans, are collectively evaluated for impairment, and accordingly, they are not separately identified for impairment disclosures. TDRs of all classes of loans are separately identified for impairment disclosures and are measured at the present value of estimated future cash flows using each loan’s effective rate at inception. If a TDR is considered to be a collateral dependent loan, the loan is reported, net, at the fair value of the collateral. If the payment of the loan is dependent on the sale of the collateral, then costs to liquidate the collateral are included when determining the impairment. For TDRs that subsequently default, the amount of reserve is determined in accordance with the accounting policy for the ALLL. Interest income on all classes of impaired loans that are on nonaccrual status is recognized in accordance with the accounting policy for nonaccrual loans. Cash receipts on all classes of impaired loans that are on nonaccrual status are generally applied to the principal balance outstanding. Interest income on all classes of impaired loans that are not on nonaccrual status is recognized on the accrual method. TDRs may be classified as accruing if the borrower has been current for a period of at least six months with respect to loan payments and management expects that the borrower will be able to continue to make payments in accordance with the terms of the restructured note. The general reserve component covers non-impaired loans of all classes and is based on historical loss experience adjusted for current factors. The historical loss experience is determined by loan class and is based on the actual loss history experienced by the Company over a three-year period. The general component is calculated based on CFBank’s loan balances and actual three-year historical loss rates. For loans with little or no actual loss experience, industry estimates are used based on loan segment. This loss experience is supplemented with other economic and judgmental factors based on the risks present for each loan class. These economic and judgmental factors include consideration of the following: levels of and trends in delinquencies and impaired loans; levels of and trends in charge-offs and recoveries; trends in volume and terms of loans; effects of any changes in risk selection and underwriting standards; other changes in lending policies, procedures, and practices; experience, ability, and depth of lending management and other relevant staff; national and local economic trends and conditions; industry conditions; and effects of changes in credit concentrations. The following portfolio segments have been identified: commercial loans; single-family residential real estate loans; multi-family residential real estate loans; commercial real estate loans; construction loans; home equity lines of credit; and other consumer loans. A description of each segment of the loan portfolio, along with the risk characteristics of each segment, is included below. Commercial loans: Commercial loans and direct financing leases include loans and leases to businesses generally located within our primary market area. Those loans and leases are typically secured by business equipment, inventory, accounts receivable and other business assets. In underwriting commercial loans, we consider the net operating income of the borrower, the debt service ratio and the financial strength, expertise and credit history of the business owners and/or guarantors. Because payments on commercial loans are dependent on successful operation of the business enterprise, repayment of such loans may be subject to a greater extent to adverse conditions in the economy. We seek to mitigate these risks through underwriting policies which require such loans to be qualified at origination on the basis of the borrower’s financial performance and the financial strength of the business owners and/or guarantors. Single-family residential real estate loans: Single-family residential real estate loans include permanent conventional mortgage loans secured by single-family residences that we originate for portfolio and purchased loans located primarily within our primary market area. Credit approval for single-family residential real estate loans requires demonstration of sufficient income to repay the principal and interest and the real estate taxes and insurance, stability of employment and an established credit record. Our policy is to originate quality loans that are evaluated for risk based on the borrower’s ability to repay the loan. Collateral positions are established by obtaining independent appraisal opinions. Mortgage insurance is generally required when the LTV exceeds 80% . Multi-family residential real estate loans: Multi-family residential real estate loans include loans secured by apartment buildings, condominiums and multi-family residential houses generally located within our primary market area. Underwriting policies provide that multi-family residential real estate loans generally may be made in amounts up to 85% of the lower of the appraised value or purchase price of the property. In underwriting multi-family residential real estate loans, we consider the appraised value and net operating income of the property, the debt service ratio and the property owner’s and/or guarantor’s financial strength, expertise and credit history. We offer both fixed-rate and adjustable-rate loans. Fixed-rate loans are generally limited to three to five years, at which time they convert to adjustable-rate loans. Because payments on loans secured by multi-family residential properties are dependent on successful operation or management of the properties, repayment of multi-family residential real estate loans may be subject to a greater extent to adverse conditions in the real estate market or the economy. Adjustable-rate multi-family residential real estate loans generally pose credit risks not inherent in fixed-rate loans, primarily because as interest rates rise, the borrowers’ payments rise, increasing the potential for default. Additionally, adjustable-rate multi-family residential real estate loans generally do not contain periodic and lifetime caps on interest rate changes. We seek to minimize the additional risk presented by adjustable-rate multi-family residential real estate loans through underwriting criteria that require such loans to be qualified at origination with sufficient debt coverage ratios under increasing interest rate scenarios. Commercial real estate loans: Commercial real estate loans include loans secured by owner occupied and non-owner occupied properties used for business purposes, such as manufacturing facilities, office buildings or retail facilities generally located within our primary market area. Underwriting policies provide that commercial real estate loans may be made in amounts up to 85% of the lower of the appraised value or purchase price of the property. In underwriting commercial real estate loans, we consider the appraised value and net operating income of the property, the debt service ratio and the property owner’s and/or guarantor’s financial strength, expertise and credit history. We offer both fixed and adjustable-rate loans. Fixed-rate loans are generally limited to three to five years, at which time they convert to adjustable-rate loans. Because payments on loans secured by commercial real estate properties are dependent on successful operation or management of the properties, repayment of commercial real estate loans may be subject to a greater extent to adverse conditions in the real estate market or the economy. Adjustable-rate commercial real estate loans generally pose credit risks not inherent in fixed-rate loans, primarily because as interest rates rise, the borrowers’ payments rise, increasing the potential for default. Additionally, adjustable-rate commercial real estate loans generally do not contain periodic and lifetime caps on interest rate changes. We seek to minimize the additional risk presented by adjustable-rate commercial real estate loans through underwriting criteria that require such loans to be qualified at origination with sufficient debt coverage ratios under increasing interest rate scenarios. Construction loans: Construction loans include loans to finance the construction of residential and commercial properties generally located within our primary market area. Construction loans are fixed-rate or adjustable-rate loans which may convert to permanent loans with maturities of up to 30 years. Our policies provide that construction loans may generally be made in amounts up to 80% of the appraised value of the property, and an independent appraisal of the property is required. Loan proceeds are disbursed in increments as construction progresses and as inspections warrant, and regular inspections are required to monitor the progress of construction. In underwriting construction loans, we consider the property owner’s and/or guarantor’s financial strength, expertise and credit history. Construction financing is considered to involve a higher degree of credit risk than long-term financing on improved, owner occupied real estate. Risk of loss on a construction loan is dependent largely upon the accuracy of the initial estimate of the property’s value at completion of construction or development compared to the estimated cost (including interest) of construction. If the estimate of value proves to be inaccurate, we may be confronted with a project, when completed, having a value which is insufficient to assure full repayment. We attempt to reduce such risks on construction loans through inspections of construction progress on the property and by requiring personal guarantees and reviewing current personal financial statements and tax returns, as well as other projects of the developer. Home equity lines of credit: Home equity lines of credit include both loans we originate for portfolio and purchased loans. We originate home equity lines of credit to customers generally within our primary market area. Home equity lines of credit are variable rate loans and the interest rate adjusts monthly at various margins to the prime rate of interest as disclosed in The Wall Street Journal. The margin is based on certain factors including the loan balance, value of collateral, election of auto-payment, and the borrower’s FICO® score. The amount of the line is based on the borrower’s credit, income and equity in the home. When combined with the balance of the prior mortgage liens, these lines generally may not exceed 89.9% of the appraised value of the property at the time of the loan commitment. The lines are secured by a subordinate lien on the underlying real estate and are, therefore, vulnerable to declines in property values in the geographic areas where the properties are located. Credit approval for home equity lines of credit requires income sufficient to repay principal and interest due, stability of employment, an established credit record and sufficient collateral. Collectability of home equity lines of credit are dependent on the borrower's continuing financial stability, and thus are more likely to be affected by adverse personal circumstances. We continue to monitor collateral values and borrower FICO® scores on both purchased and portfolio loans and, when the situation warrants, have frozen the lines of credit. Other consumer loans: Other consumer loans include closed-end home equity, home improvement, auto, credit card loans and any purchased loans to consumers generally located within our primary market area. Credit approval for other consumer loans requires income sufficient to repay principal and interest due, stability of employment, an established credit record and sufficient collateral for secured loans. Consumer loans typically have shorter terms and lower balances with higher yields as compared to real estate mortgage loans, but generally carry higher risks of default. Consumer loan collections are dependent on the borrower's continuing financial stability, and thus are more likely to be affected by adverse personal circumstances. CFBank’s charge-off policy for commercial loans, single-family residential real estate loans, multi-family residential real estate loans, commercial real estate loans, construction loans and home equity lines of credit requires management to record a specific reserve or charge-off as soon as it is apparent that the borrower is troubled and there is, or likely will be, a collateral shortfall related to the estimated value of the collateral securing the loan. Other consumer loans are typically charged off no later than 90 days past due . Transfers of Financial Assets : Transfers of financial assets are accounted for as sales when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. Foreclosed Assets : Assets acquired through or instead of loan foreclosure are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. If fair value declines subsequent to foreclosure, an adjustment is recorded through expense. Operating costs after acquisition are expensed. Low Income Housing Tax Credits (LIHTC): The Company has invested in low income housing tax credits through funds that assist corporations in investing in limited partnerships and limited liability companies that own, develop and operate low income residential rental properties for purposes of qualifying for the Housing Tax credit. These investments are accounted for under the proportional amortization method which recognizes the amortization of the investment in proportion to the tax credit and other tax benefits received. Historic Tax Credits: In June 2019, the Company made an equity investment as a non-managing member in an entity that is expected to receive historic tax credits (HTC) pursuant to Section 47 of the Internal Revenue Code. The Company expects to receive a return through the realization of federal income tax credits, as well as other tax benefits, such as tax deductions from net operating losses of the investment over a period of time. The HTC investment is accounted for under the equity method of accounting and is included in accrued interest receivable and other assets on the consolidated balance sheets. The Company’s recorded investment in this entity was $0 at December 31, 2020 and $894 at December 31, 2019. The maximum exposure to loss related to these investments was $0 at December 31, 2020, representing the Company’s investment balance . Joint Ventures: The Holding Company has contributed funds into a series of joint ventures (equity stake) for the purpose of allocating excess liquidity into higher earning assets while diversifying its revenue sources. The joint ventures are engaged in shorter term operating activities related to single family real estate developments. Income is recognized based on a rate of return on the outstanding investment balance. As units are sold, the Holding Company receives an additional incentive payment, which is recognized as income. Under ASU 2016-15, the Company has elected the nature of distribution approach to recognize returns from equity method investments. Returns on investment are classified as cash flows from operating activities and returns of investment are classified as investing activities. The balance outstanding in joint ventures at December 31, 2020 and December 31, 2019 was $1,406 and $1,000 , respectively. Income recognized on the joint ventures was $173 and $57 , respectively, for 2020 and 2019. Premises and Equipment : Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. Buildings and related components are depreciated using the straight ‑line method with useful lives ranging from 3 to 40 years. Furniture, fixtures and equipment are depreciated using the straight ‑line method with useful lives ranging from 2 to 25 years. Leasehold improvements are depreciated straight-line over the shorter of the useful life or the lease term. Federal Home Loan Bank (FHLB) stock: CFBank is a member of the FHLB system. Members are required to own a certain amount of FHLB stock based on the level of borrowings and other factors, and may invest in additional amounts. FHLB stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income. Federal Reserve Bank (FRB) stock: CFBank is a member of the FRB system and is required to own a certain amount of stock. FRB stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income. Bank Owned Life Insurance : CFBank has purchased life insurance policies on certain directors and employees. Bank owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. Loan Commitments and Related Financial Instruments : Financial instruments include off ‑balance-sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded, and fees associated with origination are booked to non-interest income at the origination date. Derivatives : Derivative financial instruments are recognized as assets or liabilities at fair value. The Company's derivatives consist mainly of interest rate swap agreements, which are used as part of its asset liability management program to help manage interest rate risk. The Company does not use derivatives for trading purposes. The derivative transactions are considered instruments with no hedging designation, otherwise known as stand-alone derivatives. Changes in the fair value of the derivatives are reported currently in earnings, as other noninterest income. Mortgage Banking Derivatives : Commitments to fund mortgage loans to be sold into the secondary market, otherwise known as interest rate locks, are accounted for as free standing derivatives. Mortgage banking activities include two types of commitments: rate lock commitments and forward loan commitments. Fair values of these mortgage derivatives are based on anticipated gains on the underlying loans. Changes in the fair values of these derivatives are included in net gains on sales of loans. Stock-Based Compensation : Compensation cost is recognized for stock options and restricted stock awards issued to directors and employees, based on the fair value of these awards at the date of grant. A Black-Scholes model is utilized to estimate the fair value of stock options, while the market price of the Company’s common stock at the date of grant is used for restricted stock awards. Compensation cost is recognized over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the required service period for each separately vesting portion of the award. Forfeitures are recognized as incurred. Income Taxes : Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax basis of assets and liabilities, computed using enacted tax rates. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company recognizes interest related to income tax matters as interest expense and penalties related to incom |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2020 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | NOTE 2- REVENUE RECOGNITION Accounting Standards Codification ("ASC") 606, Revenue from Contracts with Customers ("ASC 606"), establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity's contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. The majority of our revenue-generating transactions are not subject to ASC 606, including revenue generated from financial instruments, such as our loans, letters of credit, derivatives and investment securities, as well as revenue related to our mortgage activities related to net gains on sale of loans. All of the Company’s revenue from contracts with customers in the scope of ASC 606 is recognized within noninterest income. Descriptions of our revenue-generating activities that are within the scope of ASC 606, which are presented in our income statements as components of noninterest income are as follows: · Service charges on deposit accounts - these represent general service fees for monthly account maintenance and activity, or transaction-based fees, and consist of transaction-based revenue, time-based revenue (service period), item-based revenue or some other individual attribute-based revenue. Revenue is recognized when our performance obligation is completed which is generally monthly for account maintenance services or when a transaction has been completed (such as a wire transfer). Payment for such performance obligations are generally received at the time the performance obligations are satisfied. |
Securities
Securities | 12 Months Ended |
Dec. 31, 2020 | |
Securities [Abstract] | |
Securities | NOTE 3 – SECURITIES The following table summarizes the amortized cost and fair value of the available-for-sale securities portfolio at December 31, 2020 and December 31, 2019 and the corresponding amounts of unrealized gains and losses recognized in accumulated other comprehensive income (loss): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31, 2020 Issued by U.S. government-sponsored entities and agencies: U.S. Treasury $ 8,517 $ 119 $ - $ 8,636 Mortgage-backed securities - residential 62 3 - 65 Total $ 8,579 $ 122 $ - $ 8,701 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31, 2019 Issued by U.S. government-sponsored entities and agencies: U.S. Treasury $ 7,986 $ 32 $ 1 $ 8,017 Mortgage-backed securities - residential 126 4 - 130 Collateralized mortgage obligations 27 - - 27 Total $ 8,139 $ 36 $ 1 $ 8,174 There was no other-than-temporary impairment recognized in accumulated other comprehensive income (loss) for securities available for sale at December 31, 2020 or December 31, 2019. There were no sales of securities during the years ended December 31, 2020 or December 31, 2019. The amortized cost and fair value of debt securities at December 31, 2020 and December 31, 2019 are shown in the table below by contractual maturity. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately. December 31, 2020 December 31, 2019 Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 5,011 $ 5,033 $ 5,001 $ 5,000 Due from one to five years 3,506 3,603 2,985 3,017 Mortgage-backed securities - residential 62 65 126 130 Collateralized mortgage obligations - - 27 27 Total $ 8,579 $ 8,701 $ 8,139 $ 8,174 Fair value of securities pledged was as follows: 2020 2019 Pledged as collateral for: FHLB advances $ 1,017 $ 3,074 Public deposits 3,060 2,015 Mortgage banking derivatives 3,016 1,500 Interest-rate swaps - 77 Total $ 7,093 $ 6,666 At year end 2020 and 2019, there were no holdings of securities of any one issuer, other than U.S. Treasuries and U.S. government-sponsored entities and agencies, in an amount greater than 10% of stockholders’ equity. There were no securities with unrealized losses at December 31, 2020. The following table summarizes securities with unrealized losses at December 31, 2019 aggregated by major security type and length of time in a continuous unrealized loss position. December 31, 2019 Less than 12 Months 12 Months or More Total Description of Securities Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Issued by U.S. government-sponsored entities and agencies: U.S. Treasury (1) $ 499 $ - $ 2,501 $ 1 $ 3,000 $ 1 Total temporarily impaired $ 499 $ - $ 2,501 $ 1 $ 3,000 $ 1 (1) Unrealized loss is less than $1 resulting in rounding to zero The unrealized losses in U.S. Treasuries at December 31, 2019 were related to multiple securities. Because the decline in fair value was attributable to changes in market conditions, and not credit quality, and because the Company did not have the intent to sell these securities and would unlikely be required to sell these securities before their anticipated recovery, the Company did not consider these securities to be other-than-temporarily impaired at December 31, 2019. Equity securities totaled $5.0 million at December 31, 2020 and $0 at December 31, 2019. The increase was due to a purchase of preferred stock during the fourth quarter of 2020. |
Loans And Leases
Loans And Leases | 12 Months Ended |
Dec. 31, 2020 | |
Loans And Leases [Abstract] | |
Loans And Leases | NOTE 4 – LOANS AND LEASES The following table presents the recorded investment in loans and leases by portfolio segment. The recorded investment in loans and leases includes the principal balance outstanding adjusted for purchase premiums and discounts, and deferred loan fees and costs. December 31, 2020 December 31, 2019 Commercial (1) $ 338,286 $ 170,646 Real estate: Single-family residential 147,860 120,256 Multi-family residential 45,375 39,229 Commercial 277,028 247,543 Construction 80,426 67,652 Consumer: Home equity lines of credit 20,962 20,941 Other 2,429 4,174 Subtotal 912,366 670,441 Less: ALLL (17,022) (7,138) Loans and Leases, net $ 895,344 $ 663,303 (1) Includes $4,133 and $4,779 of commercial leases at December 31, 2020 and December 31, 2019, respectively . Included in Commercial loans at December 31, 2020, were $105,269 of loans originated under the Small Business Administration (“SBA”) Paycheck Protection Program (“PPP”). The Coronavirus Aid, Relief, and Economic Security Act of 2020, as amended (the “CARES Act”), authorized the SBA to temporarily guarantee PPP loans to provide funding to small businesses to pay certain payroll costs and benefits, and other expenses, during the COVID-19 pandemic. These loans are 100% guaranteed by the SBA and the full principal amount of the loans may qualify for forgiveness. The loans we originated have a maturity of two years, an interest rate of 1.00% and loan payments are deferred for the initial six months (which deferral period was subsequently extended to 10 months pursuant to the Paycheck Protection Program Flexibility Act of 2020). The majority of these loans have been pledged as collateral on borrowings under the FRB Paycheck Protection Program Lending Facility (“PPPLF”). See Note 10 - FHLB Advances and Other Debt for additional information. Mortgage Purchase Program: CFBank has participated in a Mortgage Purchase Program with Northpointe Bank (Northpointe), a Michigan banking corporation, since December 2012. Pursuant to the terms of a participation agreement, CFBank purchases participation interests in loans made by Northpointe related to fully underwritten and pre-sold mortgage loans originated by various prescreened mortgage brokers located throughout the U.S. The underlying loans are individually (MERS) registered loans which are held until funded by the end investor. The mortgage loan investors include Fannie Mae and Freddie Mac, and other major financial institutions. This process on average takes approximately 14 days. Given the short-term holding period of the underlying loans, common credit risks (such as past due, impairment and TDR, nonperforming, and nonaccrual classification) are substantially reduced. Therefore, no allowance is allocated by CFBank to these loans. These loans are 100% risk rated for CFBank capital adequacy purposes. Under the participation agreement, CFBank agrees to purchase a 95% ownership/participation interest in each of the aforementioned loans, and Northpointe maintains a 5% ownership interest in each loan it participates. At December 31, 2020 and 2019, CFBank held $15,713 and $26,046 , respectively, of such loans which have been included in single-family residential loan totals above. Allowance for Loan and Lease Losses: The ALLL is a valuation allowance for probable incurred credit losses in the loan and lease portfolio based on management’s evaluation of various factors including past loan loss experience, the nature and volume of the portfolio, information about specific borrower situations and estimated collateral values, economic conditions and other factors. A provision for loan and lease losses is charged to operations based on management’s periodic evaluation of these and other pertinent factors described in Note 1. The following tables present the activity in the ALLL by portfolio segment for the years ended December 31, 2020 and 2019: December 31, 2020 Real Estate Consumer Commercial Single-family Multi-family Commercial Construction Home Equity lines of credit Other Total Beginning balance $ 2,054 $ 948 $ 447 $ 2,604 $ 759 $ 265 $ 61 $ 7,138 Addition to (reduction in) provision for loan losses 2,005 745 20 6,580 1,495 15 55 10,915 Charge-offs (648) (425) - - - (21) - (1,094) Recoveries 15 31 - - - 17 - 63 Ending balance $ 3,426 $ 1,299 $ 467 $ 9,184 $ 2,254 $ 276 $ 116 $ 17,022 December 31, 2019 Real Estate Consumer Commercial Single-family Multi-family Commercial Construction Home Equity lines of credit Other Total Beginning balance $ 1,819 $ 1,061 $ 612 $ 2,274 $ 739 $ 410 $ 97 $ 7,012 Addition to (reduction in) provision for loan losses 235 (120) (165) 225 20 (195) - - Charge-offs - - - - - - (36) (36) Recoveries - 7 - 105 - 50 - 162 Ending balance $ 2,054 $ 948 $ 447 $ 2,604 $ 759 $ 265 $ 61 $ 7,138 The following table presents the balance in the ALLL and the recorded investment in loans and leases by portfolio segment and based on impairment method as of December 31, 2020: Real Estate Consumer Commercial Single- family Multi- family Commercial Construction Home Equity lines of credit Other Total ALLL: Ending allowance balance attributable to loans: Individually evaluated for impairment $ - $ - $ - $ 23 $ - $ - $ - $ 23 Collectively evaluated for impairment 3,426 1,299 467 9,161 2,254 276 116 16,999 Total ending allowance balance $ 3,426 $ 1,299 $ 467 $ 9,184 $ 2,254 $ 276 $ 116 $ 17,022 Loans: Individually evaluated for impairment $ 268 $ 104 $ - $ 2,718 $ - $ - $ - $ 3,090 Collectively evaluated for impairment 338,018 147,756 45,375 274,310 80,426 20,962 2,429 909,276 Total ending loan balance $ 338,286 $ 147,860 $ 45,375 $ 277,028 $ 80,426 $ 20,962 $ 2,429 $ 912,366 The following table presents the balance in the ALLL and the recorded investment in loans and leases by portfolio segment and based on impairment method as of December 31, 2019: Real Estate Consumer Commercial Single- family Multi- family Commercial Construction Home Equity lines of credit Other Total ALLL: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 1 $ 1 $ - $ 33 $ - $ - $ - $ 35 Collectively evaluated for impairment 2,053 947 447 2,571 759 265 61 7,103 Total ending allowance balance $ 2,054 $ 948 $ 447 $ 2,604 $ 759 $ 265 $ 61 $ 7,138 Loans: Individually evaluated for impairment 85 $ 107 $ - $ 4,420 $ - $ - $ - $ 4,612 Collectively evaluated for impairment 170,561 120,149 39,229 243,123 67,652 20,941 4,174 665,829 Total ending loan balance $ 170,646 $ 120,256 $ 39,229 $ 247,543 $ 67,652 $ 20,941 $ 4,174 $ 670,441 The following table presents loans individually evaluated for impairment by class of loans as of and for the year ended December 31, 2020. The unpaid principal balance is the contractual principal balance outstanding. The recorded investment is the unpaid principal balance adjusted for partial charge-offs, purchase premiums and discounts, deferred loan fees and costs. Cash payments of interest on these loans during the twelve months ended December 31, 2020 totaled $159 . Unpaid Principal Balance Recorded Investment ALLL Allocated Average Recorded Investment Interest Income Recognized With no related allowance recorded: Real estate: Commercial: Owner occupied $ - $ - $ - $ - $ - Total with no allowance recorded - - - - - With an allowance recorded: Commercial (1) 533 268 - 489 10 Real estate: Single-family residential (1) 104 104 - 106 4 Commercial: Non-owner occupied 2,718 2,718 23 2,728 150 Total with an allowance recorded 3,355 3,090 23 3,323 164 Total $ 3,355 $ 3,090 $ 23 $ 3,323 $ 164 (1) Allowance recorded is less than $1 resulting in rounding to zero The following table presents loans individually evaluated for impairment by class of loans as of and for the year ended December 31, 2019. The unpaid principal balance is the contractual principal balance outstanding. The recorded investment is the unpaid principal balance adjusted for partial charge-offs, purchase premiums and discounts, deferred loan fees and costs. Cash payments of interest on these loans during the twelve months ended December 31, 2019 totaled $168 . Unpaid Principal Balance Recorded Investment ALLL Allocated Average Recorded Investment Interest Income Recognized With no related allowance recorded: Real estate: Commercial: Owner occupied $ - $ - $ - $ 111 $ 6 Total with no allowance recorded - - - 111 6 With an allowance recorded: Commercial 85 85 1 92 - Real estate: Single-family residential 107 107 1 108 6 Commercial: Non-owner occupied 4,420 4,420 33 4,194 154 Total with an allowance recorded 4,612 4,612 35 4,394 160 Total $ 4,612 $ 4,612 $ 35 $ 4,505 $ 166 The following table presents the recorded investment in nonperforming loans by class of loans as of December 31, 2020 and 2019: 2020 2019 Loans past due over 90 days still on accrual $ - $ - Nonaccrual loans: Commercial 190 85 Real estate: Single-family residential 421 550 Commercial: Non-owner occupied - 1,689 Consumer: Home equity lines of credit: Originated for portfolio 12 36 Purchased for portfolio 72 79 Other consumer - - Total nonaccrual 695 2,439 Total nonperforming loans $ 695 $ 2,439 Nonaccrual loans include both single-family mortgage and consumer loans that are collectively evaluated for impairment and individually classified impaired loans. There were no loans 90 days or more past due and still accruing interest at December 31, 2020 or December 31, 2019. The following table presents the aging of the recorded investment in past due loans and leases by class of loans as of December 31, 2020: 30 - 59 Days Past Due 60 - 89 Days Past Due Greater than 90 Days Past Due Total Past Due Loans Not Past Due Nonaccrual Loans Not > 90 days Past Due Commercial $ - $ - $ - $ - $ 338,286 $ 190 Real estate: Single-family residential 1,747 - 315 2,062 145,798 106 Multi-family residential - - - - 45,375 - Commercial: Non-owner occupied - 78 - 78 159,835 - Owner occupied - - - - 90,049 - Land - - - - 27,066 - Construction - - - - 80,426 - Consumer: Home equity lines of credit: Originated for portfolio - - - - 20,773 12 Purchased for portfolio - - 46 46 143 26 Other - - - - 2,429 - Total $ 1,747 $ 78 $ 361 $ 2,186 $ 910,180 $ 334 The following table presents the aging of the recorded investment in past due loans and leases by class of loans as of December 31, 2019: 30 - 59 Days Past Due 60 - 89 Days Past Due Greater than 90 Days Past Due Total Past Due Loans Not Past Due Nonaccrual Loans Not > 90 days Past Due Commercial $ - $ 71 $ - $ 71 $ 170,575 $ 85 Real estate: Single-family residential 2,453 261 426 3,140 117,116 124 Multi-family residential - - - - 39,229 - Commercial: Non-owner occupied - - 1,689 1,689 138,762 - Owner occupied - - - - 81,871 - Land - - - - 25,221 - Construction 304 - - 304 67,348 - Consumer: Home equity lines of credit: Originated for portfolio - - 22 22 20,713 14 Purchased for portfolio - - - - 206 79 Other - - - - 4,174 - Total $ 2,757 $ 332 $ 2,137 $ 5,226 $ 665,215 $ 302 Short-term Loan Deferrals Under the CARES Act, financial institutions are permitted to not classify loan modifications as TDRs that were related to the impact of COVID-19 if: · The modifications were made between March 1, 2020 and the earlier of December 31, 2020 or 60 days after the end of the public health emergency, and · The underlying loans were not more than 30 days past due as of December 31, 2019. We implemented a loan modification program in accordance with the CARES Act to provide temporary relief to borrowers that meet the requirements under the CARES Act. The program allows for deferral of payments for up to 90 days, which we may extend for up to an additional 90 days at our option. The deferred payments and accrued interest during the deferral period are due and payable on or before the maturity of the loans. At December 31, 2020, loans with an outstanding balance of approximately $528 were on temporary deferrals. Under the provisions of the CARES Act, none of these loans were considered a TDR at December 31, 2020. Troubled Debt Restructurings (TDRs): From time to time, the terms of certain loans are modified as TDRs, where concessions are granted to borrowers experiencing financial difficulties. The modification of the terms of such loans may have included one or a combination of the following: a reduction of the stated interest rate of the loan; an increase in the stated rate of interest lower than the current market rate for new debt with similar risk; an extension of the maturity date; or a change in the payment terms. As of December 31, 2020 and December 31, 2019, TDR’s totaled $3,090 and $2,923 , respectively. The Company allocated $23 and $22 of specific reserves to loans modified in TDRs as of December 31, 2020 and 2019, respectively. The Company had no t committed to lend any additional amounts as of December 31, 2020 or 2019 to customers with outstanding loans that were classified as nonaccrual TDRs. During the year ended December 31, 2020, one commercial loan in the amount of $190 was modified as a TDR, where concessions were granted to a borrower experiencing financial difficulties. There were no loans modified as a TDR during the year ended December 31, 2019. The TDR described above resulted in a $264 charge off during the year ended December 31, 2020 and no charge-offs during the year ended December 31, 2019. There were no TDR’s that went into payment default during the years ended December 31, 2020 and December 31, 2019. In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed under the Company’s internal underwriting policy. Nonaccrual loans include loans that were modified and identified as TDRs and the loans are not performing. At December 31, 2020 and 2019, nonaccrual TDRs were as follows: 2020 2019 Commercial $ 190 $ 85 Total $ 190 $ 85 Nonaccrual loans at December 31, 2020 and 2019 did not include $2,900 and $2,838 , respectively, of TDRs where customers had established a sustained period of repayment performance, generally six months, the loans were current according to their modified terms and repayment of the remaining contractual payments was expected. These loans are included in total impaired loans. Credit Quality Indicators: The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt, such as current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors. Management analyzes loans individually by classifying the loans as to credit risk. This analysis includes commercial, commercial real estate and multi-family residential real estate loans. Internal loan reviews for these loan types are performed at least annually, and more often for loans with higher credit risk. Adjustments to loan risk ratings are based on the reviews and at any time information is received that may affect risk ratings. The following definitions are used for risk ratings: Special Mention . Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of CFBank’s credit position at some future date. Substandard . Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that there will be some loss if the deficiencies are not corrected. Doubtful . Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, condition and values, highly questionable and improbable. Loans not meeting the criteria to be classified into one of the above categories are considered to be not rated or pass-rated loans. Loans listed as not rated are included in groups of homogeneous loans. Past due information is the primary credit indicator for groups of homogenous loans. Loans listed as pass-rated loans are loans that are subject to internal loan reviews and are determined not to meet the criteria required to be classified as special mention, substandard, doubtful or loss. The recorded investment in loans and leases by risk category and by class of loans as of December 31, 2020 and based on the most recent analysis performed follows. Not Rated Pass Special Mention Substandard Doubtful Total Commercial $ 1 $ 337,110 $ 664 $ 321 $ 190 $ 338,286 Real estate: Single-family residential 147,439 - - 421 - 147,860 Multi-family residential - 45,249 - 126 - 45,375 Commercial: Non-owner occupied 57 150,084 7,054 2,718 - 159,913 Owner occupied - 87,636 1,537 876 - 90,049 Land - 27,066 - - - 27,066 Construction - 80,247 179 - - 80,426 Consumer: Home equity lines of credit: Originated for portfolio 20,746 - - 27 - 20,773 Purchased for portfolio 118 - - 71 - 189 Other 2,429 - - - - 2,429 $ 170,790 $ 727,392 $ 9,434 $ 4,560 $ 190 $ 912,366 The recorded investment in loans and leases by risk category and class of loans as of December 31, 2019 follows. There were no loans rated doubtful at December 31, 2019. Not Rated Pass Special Mention Substandard Total Commercial $ - $ 168,617 $ 1,424 $ 605 $ 170,646 Real estate: Single-family residential 119,707 - - 549 120,256 Multi-family residential - 39,081 - 148 39,229 Commercial: Non-owner occupied 67 134,466 1,498 4,420 140,451 Owner occupied - 79,773 2,098 - 81,871 Land - 25,221 - - 25,221 Construction 1,855 65,797 - - 67,652 Consumer: Home equity lines of credit: Originated for portfolio 20,681 - - 54 20,735 Purchased for portfolio 127 - - 79 206 Other 4,174 - - - 4,174 $ 146,611 $ 512,955 $ 5,020 $ 5,855 $ 670,441 Leases: The following lists the components of the net investment in direct financing leases (1) : December 31, 2020 December 31, 2019 Total minimum lease payments to be received $ 4,459 $ 5,252 Less: unearned income (326) (473) Net investment in direct financing leases $ 4,133 $ 4,779 (1) There were no initial direct costs associated with these leases The following summarizes the future minimum lease payments receivable in subsequent fiscal years: 2021 793 2022 793 2023 1,563 2024 1,310 $ 4,459 |
Foreclosed Assets
Foreclosed Assets | 12 Months Ended |
Dec. 31, 2020 | |
Foreclosed Assets [Abstract] | |
Foreclosed Assets | NOTE 5 – FORECLOSED ASSETS There were no foreclosed assets at December 31, 2020 and December 31, 2019. There was no activity in the valuation allowance account or any write-downs during the years ended December 31, 2020 and 2019. Expenses related to foreclosed assets include: 2020 2019 Net loss (gain) on sales $ - $ (12) Operating expenses, net of rental income - 3 $ - $ (9) Foreclosed asset expenses incurred during 2019 were related to maintenance expense to ready the property to sell. |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value [Abstract] | |
Fair Value | NOTE 6 – FAIR VALUE F air value is the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values: Level 1 – Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2 – Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. Level 3 – Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. The Company used the following methods and significant assumptions to estimate the fair value of each type of asset and liability: Securities available for sale : The fair value of securities available for sale is determined using pricing models that vary based on asset class and include available trade, bid and other market information or matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2). Derivatives : The fair value of derivatives, which includes yield maintenance provisions, interest rate lock commitments and interest rate swaps, is based on valuation models using observable market data as of the measurement date (Level 2). TBA mortgage – back securities : To mitigate the effect of the interest rate risk inherent in providing rate lock commitments to borrowers, the Company enters into either a forward sales contract to sell loans to investors when using best efforts or a trade of “to be announced (TBA)” mortgage-backed securities for mandatory delivery. The forward sales contracts lock in a price for the sale of loans with similar characteristics to the specific rate lock commitments based on a valuation model using observable market data for pricing commitments (Level 2). Impaired loans : The fair value of impaired loans with specific allocations of the ALLL is generally based on recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Appraisals for collateral-dependent impaired loans are performed by certified general appraisers (for commercial properties) or certified residential appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by a third-party appraisal management company approved by the Board of Directors annually. Once received, the loan officer or a member of the credit department reviews the assumptions and approaches utilized in the appraisal as well as the overall resulting fair value in comparison with independent data sources such as recent market data or industry-wide statistics. Appraisals are updated as needed based on facts and circumstances associated with the individual properties. Real estate appraisals typically incorporate measures such as recent sales prices for comparable properties. Appraisers may make adjustments to the sales prices of the comparable properties as deemed appropriate based on the age, condition or general characteristics of the subject property. Management applies an additional discount to real estate appraised values, typically to reflect changes in market conditions since the date of the appraisal and to cover disposition costs (including selling expenses) based on the intended disposition method of the property. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business, resulting in a Level 3 fair value classification. Impaired loans are evaluated on a quarterly basis for additional impairment and adjusted accordingly. Loans held for sale: Loans held for sale are carried at fair value, as determined by outstanding commitments from third party investors (Level 2). Assets and liabilities measured at fair value on a recurring basis, including financial assets and liabilities for which the Company has elected the fair value option, are summarized below: Fair Value Measurements at December 31, 2020 Using Significant Other Observable Inputs (Level 2) Financial Assets: Securities available for sale: Issued by U.S. government-sponsored entities and agencies: U.S. Treasury $ 8,636 Mortgage-backed securities - residential 65 Total securities available for sale $ 8,701 Loans held for sale $ 283,165 Yield maintenance provisions (embedded derivatives) $ 1,944 Interest rate lock commitments $ 18,101 Financial Liabilities: Interest-rate swaps $ 1,944 TBA mortgage-backed securities $ 2,690 Fair Value Measurements at December 31, 2019 Using Significant Other Observable Inputs (Level 2) Financial Assets: Securities available for sale: Issued by U.S. government-sponsored entities and agencies: U.S. Treasury $ 8,017 Mortgage-backed securities - residential 130 Collateralized mortgage obligations 27 Total securities available for sale $ 8,174 Loans held for sale $ 135,711 Yield maintenance provisions (embedded derivatives) $ 12 Interest rate lock commitments $ 3,104 Financial Liabilities: Interest-rate swaps $ 12 TBA mortgage-backed securities $ 350 The Company had no assets or liabilities measured at fair value on a recurring basis that were measured using Level 1 or Level 3 inputs at December 31, 2020 or December 31, 2019. There were no transfers of assets or liabilities measured at fair value between levels during 2020 or 2019. Assets measured at fair value on a non-recurring basis are summarized below: Fair Value Measurements at December 31, 2020 Using Significant Unobservable Inputs (Level 3) Impaired loans: Commercial $ 190 Total impaired loans $ 190 Fair Value Measurements at December 31, 2019 Using Significant Unobservable Inputs (Level 3) Impaired loans: Commercial $ 84 Real Estate: Single-family residential 106 Commercial: Non-owner occupied 4,387 Total impaired loans $ 4,577 The Company had no assets or liabilities measured at fair value on a non-recurring basis that were measured using Level 1 or 2 inputs at December 31, 2020 or December 31, 2019. Impaired loans that are measured for impairment using the fair value of the collateral for collateral dependent loans, had a principal balance of $190 , with a valuation allowance of $0 at December 31, 2020. Impaired loans that are measured for impairment using the fair value of the collateral for collateral dependent loans, had a principal balance of $4,612 with a valuation allowance of $35 at December 31, 2019. The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at December 31, 2020: Fair Value Valuation Technique(s) Unobservable Inputs (Range) Weighted Average Impaired loans: Commercial $ 190 Comparable sales approach Adjustment for differences between the stated value and net realizable value 65.00% The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at December 31, 2019: Fair Value Valuation Technique(s) Unobservable Inputs (Range) Weighted Average Impaired loans: Commercial $ 84 Comparable sales approach Adjustment for differences between the comparable market transactions 2.06% Real estate: Single -family residential 106 Comparable sales approach Adjustment for differences between the comparable market transactions 3.61% Commercial: Non-owner occupied 4,387 Comparable sales approach Adjustment for differences between the comparable market transactions ( -2.58% , 14.00% ) 2.44% Financial Instruments Recorded Using Fair Value Option: The Company has elected the fair value option for loans held for sale. These loans are intended for sale and the Company believes that the fair value is the best indicator of the resolution of these loans. Loans originated as construction loans, that were subsequently transferred to held for sale, are carried at the lower of cost or market and are not included. Interest income is recorded based on the contractual terms of the loan and in accordance with the Company’s policy on loans held for investment. None of these loans were 90 days or more past due or on nonaccrual as of December 31, 2020 or December 31, 2019. As of December 31, 2020 and December 31, 2019, the aggregate fair value, contractual balance and gain or loss of loans held for sale were as follows: December 31, 2020 December 31, 2019 Aggregate fair value $ 283,165 $ 135,711 Contractual balance 274,401 133,993 Gain 8,764 1,718 The total amount of gains and losses from changes in fair value included in earnings for the year ended December 31, 2020 and 2019 for loans held for sale were: 2020 2019 Interest income $ 6,231 $ 2,153 Interest expense - - Change in fair value 7,046 1,341 Total change in fair value $ 13,277 $ 3,494 The carrying amounts and estimated fair values of financial instruments at year-end were as follows: Fair Value Measurements at December 31, 2020 Using: Carrying Value Level 1 Level 2 Level 3 Total Financial assets Cash and cash equivalents $ 221,594 $ 221,594 $ - $ - $ 221,594 Interest-bearing deposits in other financial institutions 100 100 - - 100 Securities available for sale 8,701 - 8,701 - 8,701 Equity securities 5,000 - - 5,000 5,000 Loans held for sale 283,165 - 283,165 - 283,165 Loans and leases, net 895,344 - - 905,030 905,030 FHLB and FRB stock 5,847 n/a n/a n/a n/a Accrued interest receivable 4,584 1 36 4,547 4,584 Yield maintenance provisions (embedded derivatives) 1,944 - 1,944 - 1,944 Interest rate lock commitments 18,101 - 18,101 - 18,101 Financial liabilities Deposits $ (1,113,070) $ (554,650) $ (565,089) $ - $ (1,119,739) FHLB advances and other debt (214,426) - (215,531) - (215,531) Advances by borrowers for taxes and insurance (1,029) - - (1,029) (1,029) Subordinated debentures (14,844) - (16,325) - (16,325) Accrued interest payable (498) - (498) - (498) Interest-rate swaps (1,944) - (1,944) - (1,944) TBA mortgage-backed securities (2,690) - (2,690) - (2,690) The carrying amounts and estimated fair values of financial instruments at December 31, 2019 were as follows: Fair Value Measurements at December 31, 2019 Using: Carrying Value Level 1 Level 2 Level 3 Total Financial assets Cash and cash equivalents $ 45,879 $ 45,879 $ - $ - $ 45,879 Interest-bearing deposits in other financial institutions 100 100 - - 100 Securities available for sale 8,174 - 8,174 - 8,174 Loans held for sale 135,711 - 135,711 - 135,711 Loans and leases, net 663,303 - - 664,152 664,152 FHLB stock 4,008 n/a n/a n/a n/a Accrued interest receivable 2,749 25 40 2,684 2,749 Yield maintenance provisions (embedded derivatives) 12 - 12 - 12 Interest rate lock commitments 3,104 - 3,104 - 3,104 Financial liabilities Deposits $ (746,323) $ (382,173) $ (367,375) $ - $ (749,548) FHLB advances and other debt (29,017) - (29,669) - (29,669) Advances by borrowers for taxes and insurance (929) - - (929) (929) Subordinated debentures (14,806) - (15,940) - (15,940) Accrued interest payable (208) - (208) - (208) Interest-rate swaps (12) - (12) - (12) TBA mortgage-backed securities (350) - (350) - (350) The methods and assumptions used to estimate fair value are described below. Cash and Cash Equivalents and Interest-Bearing Deposits in Other Financial Institutions The carrying amounts of cash and short-term instruments approximate fair values and are classified as Level 1. Equity Securities Equity securities without a readily determinable fair value are held at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. For equity securities measured under the practicability exception under Accounting Standards Update (“ASU”) 2016-01, the Company performs a qualitative assessment for equity securities without readily determinable fair values considering impairment indicators to evaluate whether an impairment exists. If an impairment exists, the Company will recognize a loss based on the difference between carrying value and fair value. This method results in a Level 3 classification. FHLB and FRB Stock It is not practical to determine the fair value of FHLB and FRB stock due to restrictions placed on its transferability. Loans and Leases Fair values of loans and leases, excluding loans held for sale, are estimated utilizing an exit pricing methodology as follows: For variable rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values resulting in a Level 3 classification. Fair values for other loans are estimated using discounted cash flow analyses, using interest rates currently being offered for loans with similar terms to borrowers of similar credit quality resulting in a Level 3 classification. The discount rate for the discounted cash flow analyses includes a credit quality adjustment. Impaired loans are valued at the lower of cost or fair value as described previously. Deposits The fair values disclosed for demand deposits (e.g., interest and noninterest bearing checking, passbook savings, and money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amount) resulting in a Level 1 classification. Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flows calculation that applies interest rates currently being offered on certificates to a schedule of aggregated expected monthly maturities on time deposits resulting in a Level 2 classification. FHLB Advances and Other Debt The fair values of the Company’s long-term FHLB and credit facility advances are estimated using discounted cash flow analyses based on the current borrowing rates for similar types of borrowing arrangements resulting in a Level 2 classification. The fair values of the Company’s subordinated debentures are estimated using discounted cash flow analyses based on the current borrowing rates for similar types of borrowing arrangements resulting in a Level 2 classification. Accrued Interest Receivable/Payable The carrying amounts of accrued interest approximate fair value resulting in a Level 1, 2 or 3 classification, consistent with the asset or liability with which they are associated. Advances by Borrowers for Taxes and Insurance The carrying amount of advances by borrowers for taxes and insurance approximates fair value resulting in a Level 3 classification, consistent with the liability with which they are associated. Off-Balance-Sheet Instruments The fair value of off-balance-sheet items is not considered material. |
Loan Servicing
Loan Servicing | 12 Months Ended |
Dec. 31, 2020 | |
Loan Servicing [Abstract] | |
Loan Servicing | NOTE 7 – LOAN SERVICING Mortgage loans serviced for others are not reported as assets. The principal balances of these loans at year-end were as follows: December 31, 2020 December 31, 2019 Mortgage loans serviced for Freddie Mac $ 1,875 $ 2,649 Custodial escrow balances maintained in connection with serviced loans were $94 and $59 at year-end 2020 and 2019, respectively. |
Premises And Equipment And Oper
Premises And Equipment And Operating Leases | 12 Months Ended |
Dec. 31, 2020 | |
Premises And Equipment And Operating Leases [Abstract] | |
Premises And Equipment And Operating Leases | NOTE 8- PREMISES AND EQUIPMENT AND OPERATING LEASES Year-end premises and equipment were as follows: December 31, 2020 December 31, 2019 Land and land improvements $ 1,293 $ 1,293 Buildings 4,140 4,294 Furniture, fixtures and equipment 2,971 2,729 8,404 8,316 Less: accumulated depreciation (4,674) (4,325) $ 3,730 $ 3,991 Depreciation expense for 2020 and 2019 totaled $381 and $316 , respectively. Operating Leases: A lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. On January 1, 2019, the Company adopted ASU No. 2016-02, Leases (Topic 842) and all subsequent ASUs that modified Topic 842. For the Company, Topic 842 primarily affected the accounting treatment for operating lease agreements in which the Company is the lessee. The leases in which the Company is the lessee are comprised of real estate property for branches and offices and for equipment with terms extending through 2024. All of our leases are classified as operating leases, and therefore, were previously not recognized on the Company’s consolidated balance sheets. With the adoption of Topic 842, operating lease agreements are required to be recognized on the consolidated balance sheets as a right-of-use (“ROU”) asset and a corresponding operating lease liability. The Company does not have any leases classified as finance leases. The calculated amounts of the ROU assets and lease liabilities are impacted by the length of the lease term and the discount rate used to present value the minimum lease payments. The Company’s lease agreements often include one or more options to renew at the Company’s discretion which were considered, as applicable, in the calculation of the ROU assets and lease liabilities. If at lease inception, the Company considers the exercising of a renewal option to be reasonably certain, the Company will include the extended term in the calculation of the ROU asset and lease liability. Regarding the discount rate, Topic 842 requires the use of the rate implicit in the lease whenever this rate is readily determinable. As this rate is not readily determinable in our operating leases, the Company utilizes its incremental borrowing rate at lease inception, on a collateralized basis, over a similar term. At December 31, 2020, the weighted-average remaining lease term for the Company’s operating leases was 3.3 years and the weighted-average discount rate was 6.59% . The Company’s operating lease costs were $393 and $404 for the years ended December 31, 2020 and December 31, 2019, respectively. The variable lease costs totaled $244 and $231 for the years ended December 31, 2020 and December 31, 2019, respectively. As the Company elected not to separate lease and non-lease components for all classes of underlying assets and instead to account for them as a single lease component, the variable lease cost primarily represents variable payments such as common area maintenance and utilities. Future minimum operating lease payments as of December 31, 2020 are as follows: 2021 $ 548 2022 536 2023 377 2024 250 Thereafter - Total future minimum rental commitments 1,711 Less - amounts representing interest (179) Total operating lease liabilities $ 1,532 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2020 | |
Deposits [Abstract] | |
Deposits | NOTE 9 – DEPOSITS Time deposits of $100 or more were $461,401 and $294,452 at year-end 2020 and 2019, respectively. Time deposits of $250 or more were $244,840 and $148,473 at year-end 2020 and 2019, respectively. Scheduled maturities of time deposits for the next five years are as follows: 2021 $ 358,512 2022 143,458 2023 36,680 2024 19,671 2025 99 Thereafter - Total $ 558,420 Brokered deposits at year-end 2020 and 2019 totaled $168,708 and $124,884 , respectively. |
FHLB Advances And Other Debt
FHLB Advances And Other Debt | 12 Months Ended |
Dec. 31, 2020 | |
FHLB Advances And Other Debt [Abstract] | |
FHLB Advances And Other Debt | NOTE 10 –FHLB ADVANCES AND OTHER DEBT FHLB advances and other debt were as follows: Weighted Average Rate December 31, 2020 December 31, 2019 FHLB fixed rate advances Maturities: 2020 - 4,500 2021 1.63% 7,500 4,000 2022 1.16% 10,000 1,500 2023 0.92% 3,500 6,500 2024 1.90% 6,500 - Total FHLB fixed rate advances 27,500 16,500 Fixed rate other debt: FRB PPPLF advances 0.35% 107,413 - Variable rate other debt: Holding Company credit facility 4.00% 9,500 5,000 Warehouse facility 3.50% 70,013 7,517 Total variable rate other debt 79,513 12,517 Total $ 214,426 $ 29,017 Each FHLB advance is payable at its maturity date, with a prepayment penalty if repaid before maturity. The advances were collateralized as follows: December 31, 2020 December 31, 2019 Single-family mortgage loans $ 87,076 $ 79,144 Multi-family mortgage loans 10,970 21,258 Commercial real estate loans (1-4 family) 5,750 6,639 Home equity lines of credit 2,838 5,028 Securities 1,017 3,074 Cash 3,300 3,300 Total $ 110,951 $ 118,443 Based on the collateral pledged to the FHLB, CFBank was eligible to borrow up to a total of $81 ,409 from the FHLB at December 31, 2020. Payments due on FHLB advances and other debt over the next five years are as follows: December 31, 2020 2021 $ 78,013 2022 126,413 2023 3,500 2024 6,500 2025 - $ 214,426 The Holding Company has a term loan in the original principal amount of $5,000 with an additional $10,000 revolving line-of-credit with a third-party bank. The term loan requires quarterly principal payments of $125 plus accrued interest. Any remaining principal is due and payable on the maturity date, which is December 23, 2022 . Loans under the credit facility bear interest at a rate equal to the Prime Rate plus 0.75% . The purpose of the credit facility is to provide an additional source of liquidity for the Holding Company and to provide funds for the Holding Company to downstream as additional capital to CFBank to support growth. As of December 31, 2020, the Company had an outstanding balance of $4,500 on the term loan and a $5,000 outstanding balance on the revolving line-of-credit. At December 31, 2019, the term loan had an outstanding balance of $5,000 and no outstanding balance on the line of credit facility. At December 31, 2020, CFBank had availability in unused lines of credit at two commercial banks in amounts of $50,000 and $15,000 . There were no outstanding borrowings on either line at December 31, 2020 and December 31, 2019. Interest on any principal amounts outstanding from time to time under these lines accrues daily at a variable rate based on the commercial bank’s cost of funds and current market returns . During the fourth quarter of 2019, CFBank entered into a $25,000 warehouse facility with a commercial bank. The warehouse facility is used to periodically fund loans held for sale from the close (funding) date until they are sold in the secondary market. Borrowings on the facility bear interest at the greater of 30 Day Libor plus 2.00% or 4.00% and are secured by the specific loans that were funded. This warehouse facility had an no outstanding balance at December 31, 2020 and an outstanding balance of $7,517 at December 31,2019. During the second quarter of 2020, CFBank entered into an additional $75,000 warehouse facility with a commercial bank. The warehouse facility is used to periodically fund loans held for sale from the close (funding) date until they are sold in the secondary market. Borrowings on the facility bear interest at the greater of (a) the 30-day LIBOR plus 1.75% or (b) 3.50% and are secured by the specific loans that were funded. This warehouse facility had an outstanding balance of $70,013 at December 31, 2020, and no outstanding balance at December 31, 2019. To support the effectiveness of the PPP, the Federal Reserve B oard (the “FRB”) introduced the PPPLF to extend credit to financial institutions that made PPP loans, with the related PPP loans used as collateral on the borrowings. The PPPLF borrowings have a fixed interest rate of 0.35% and a maturity equal to the maturity date of the related PPP loans, with the PPP loans maturing two years from the origination date of the PPP loan. If a PPP loan pays off early, the corresponding PPPLF borrowing must be paid off as well. At December 31, 2020, the Company’s PPP loans and related PPPLF funding had a weighted average life of approximately 1.2 years. At December 31, 2020, the principal balance of PPPLF advances outstanding was $107,413 . Other than the PPPLF borrowing, there were no outstanding borrowings with the FRB at December 31, 2020. There were no outstanding borrowings with the FRB at December 31, 2019. Assets pledged as collateral with the FRB were as follows: 2020 2019 Commercial loans $ 39,914 $ 38,317 Commercial real estate loans 85,655 77,733 $ 125,569 $ 116,050 Based on the collateral pledged, CFBank was eligible to borrow up to $81,508 from the FRB at year-end 2020. |
Subordinated Debentures
Subordinated Debentures | 12 Months Ended |
Dec. 31, 2020 | |
Subordinated Debentures [Abstract] | |
Subordinated Debentures | NOTE 11 – SUBORDINATED DEBENTURES 2003 Subordinated Debentures: In December 2003, Central Federal Capital Trust I, a trust formed by the Holding Company, closed a pooled private offering of 5,000 trust preferred securities with a liquidation amount of $1 per security. The Holding Company issued $5,155 of subordinated debentures to the trust in exchange for ownership of all of the common stock of the trust and the proceeds of the preferred securities sold by the trust . The Holding Company is not considered the primary beneficiary of this trust (variable interest entity); therefore, the trust is not consolidated in the Company’s financial statements, but rather the subordinated debentures are shown as a liability. The Holding Company’s investment in the common stock of the trust was $155 and is included in other assets. The Holding Company may redeem the subordinated debentures, in whole or in part, in a principal amount with integral multiples of $1 , at 100% of the principal amount, plus accrued and unpaid interest. The subordinated debentures mature on December 30, 2033 . The subordinated debentures are also redeemable in whole or in part from time to time, upon the occurrence of specific events defined within the trust indenture. There are no required principal payments on the subordinated debentures over the next five years. The Holding Company has the option to defer interest payments on the subordinated debentures for a period not to exceed five consecutive years. The subordinated debentures have a variable rate of interest, reset quarterly, equal to the three-month London Interbank Offered Rate plus 2.85% , which was 3.09% at year-end 2020 and 4.81% at year-end 2019. 2018 Fixed-to-floating rate subordinated notes: In December 2018, the Holding Company entered into subordinated note purchase agreements with certain qualified institutional buyers and completed a private placement of $10 million of fixed-to-floating rate subordinated notes with a maturity date of December 30, 2028 pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended, and Rule 506(b) of Regulation D promulgated thereunder. The Notes initially bear interest at 7.00% , from and including December 20, 2018, to but excluding December 30, 2023, payable semi-annually in arrears on June 30 and December 30 of each year. From and including December 30, 2023, to but excluding December 30, 2028 or the earlier redemption of the notes, the interest rate will reset quarterly to an interest rate equal to the then current three-month LIBOR (but not less than zero) plus 4.14% , payable quarterly in arrears on March 30, June 30, September 30, and December 30 of each year. The Holding Company may, at its option, redeem the notes beginning on December 30, 2023 and on any scheduled interest payment date thereafter. After payment of approximately $388 of debt issuance costs, the Holding Company’s net proceeds were approximately $9,612 . At December 31, 2020, the balance of the subordinated notes, net of unamortized debt issuance costs, was $9,689 . |
Benefit Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 2020 | |
Benefit Plans [Abstract] | |
Benefit Plans | NOTE 12 – BENEFIT PLANS Multi-employer pension plan : CFBank participates in the Pentegra Defined Benefit Plan for Financial Institutions (the “Pentegra DB Plan”), a multi-employer contributory trusteed pension plan. The retirement benefits to be provided by the plan were frozen as of June 30, 2003 and future employee participation in the plan was stopped. The plan was maintained for all eligible employees and the benefits were funded as accrued. The cost of funding was charged directly to operations. The unfunded liability under the Pentegra DB Plan at June 30, 2020 totaled $104 and at June 30, 2019 was $110 . CFBank’s contributions for the plan years ending June 30, 2020 and June 30, 2019, totaled $29 and $59 , respectively. Contributions to the plan may vary from period to period due to the change in the plan's unfunded liability. The unfunded liability is primarily related to the change in plan assets and the change in plan liability from one year to the next. The change in plan assets is based on contributions deposited, benefits paid and the actual rate of return earned on those assets. The change in plan liability is based on demographic changes and changes in the interest rates used to determine plan liability. In the event the actual rate of return earned on plan assets declines, the value of the plan assets will decline. In the event the interest rates used to determine plan liability decrease, plan liability will increase. The combined effect of each change determines the change in the unfunded liability and the change in the employer contributions. The Pentegra DB Plan is a tax-qualified defined-benefit pension plan. The Pentegra DB Plan operates as a multi-employer plan for accounting purposes and as a multiple-employer plan under the Employee Retirement Income Security Act of 1974 and the Internal Revenue Code. There are no collective bargaining agreements in place that require contributions to the Pentegra DB Plan. The Pentegra DB Plan is a single plan under Internal Revenue Code Section 413(c) and, as a result, all of the assets stand behind all of the liabilities. Accordingly, under the Pentegra DB Plan contributions made by a participating employer may be used to provide benefits to participants of other participating employers. Funded status (market value of plan assets divided by funding target) based on valuation reports as of July 1, 2020 and 2019 was 90.19% and 89.69% , respectively. Total contributions made to the Pentegra DB Plan, as reported on Form 5500 of the Pentegra DB Plan, totaled $138,322 and $164,570 for the plan years ended June 30, 2019 and June 30, 2018, respectively. CFBank’s contributions to the Pentegra DB Plan were not more than 5% of the total contributions to the Pentegra DB Plan. 401(k) Plan: The Company sponsors a 401(k) plan that allows employee contributions up to the maximum amount allowable under federal tax regulations, which are currently matched in an amount equal to 50% of the first 6% of the compensation contributed. Total expense for matching contributions for 2020 and 2019 was $293 and $188 , respectively. Salary Continuation Agreement: In 2004, CFBank entered into a nonqualified salary continuation agreement with its former Chairman Emeritus. Benefits provided under the plan are unfunded, and payments are made by CFBank. Under the plan, CFBank pays him, or his beneficiary, a benefit of $25 annually for 20 years, beginning 6 months after his retirement date, which was February 28, 2008. The expense related to this plan totaled $7 and $8 in 2020 and 2019, respectively. The accrual is included in accrued interest payable and other liabilities in the consolidated balance sheets and totaled $152 at year-end 2020 and $170 at year-end 2019. Life Insurance Benefits: CFBank has entered into agreements with certain employees, former employees and directors to provide life insurance benefits which are funded through life insurance policies purchased and owned by CFBank. The expense related to these benefits totaled ($16) and ($12) in 2020 and 2019, respectively. The accrual for CFBank’s obligation under these agreements is included in accrued interest payable and other liabilities in the consolidated balance sheets and totaled $154 at year-end 2020 and $171 at year-end 2019. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Taxes [Abstract] | |
Income Taxes | NOTE 13 – INCOME TAXES Income tax expense was as follows: December 31, 2020 December 31, 2019 Current federal $ 9,720 $ 2,627 Deferred federal (1) (3,045) (187) Total $ 6,675 $ 2,440 (1) Includes tax benefit of operating loss carryforwards of $34 and $34 for the years ended December 31, 2020 and 2019, respectively. Effective tax rates differ from the federal statutory rate of 21% for 2020 and 2019 applied to income before income taxes due to the following: December 31, 2020 December 31, 2019 Federal statutory rate times financial statement income $ 7,619 $ 2,529 Effect of: Stock compensation (19) (18) Bank owned life insurance income (30) (30) Historic tax credits (807) - Low income housing tax credits (106) (59) Other 18 18 $ 6,675 $ 2,440 Effective tax rate 18% 20% Year-end deferred tax assets and liabilities were due to the following: 2020 2019 Deferred tax assets: Allowance for loan and lease losses $ 3,407 $ 1,170 Compensation related issues 1,815 433 Deferred loan fees 293 - Nonaccrual interest 57 55 Net operating loss carry forward 398 432 Operating lease liabilities 322 412 6,292 2,502 Deferred tax liabilities: FHLB stock dividend 226 226 Deferred loan costs - 7 Depreciation 15 73 Operating lease right-of-use assets 291 374 Unrealized mark-to-market gain 935 32 Other 2 4 Prepaid expenses 76 65 1,545 781 Net deferred tax asset $ 4,747 $ 1,721 At December 31, 2020, the Company had a deferred tax asset recorded of approximately $4,700. At December 31, 2019, the Company had a deferred tax asset recorded of approximately $1,700. At December 31, 2020 and December 31, 2019, the Company had no unrecognized tax benefits recorded. The Company is subject to U.S. federal income tax and is no longer subject to federal examination for years prior to 2017. Our deferred tax assets are composed of U.S. net operating losses (“NOLs”), and other temporary book to tax differences. When determining the amount of deferred tax assets that are more-likely-than-not to be realized, and therefore recorded as a benefit, the Company conducts a regular assessment of all available information. This information includes, but is not limited to, taxable income in prior periods, projected future income and projected future reversals of deferred tax items. Based on these criteria, the Company determined as of December 31, 2020 that no valuation allowance was required against the net deferred tax asset. In 2012, a recapitalization program through the sale of $22,500 in common stock improved the capital levels of CFBank and provided working capital for the Holding Company. The result of the change in stock ownership associated with the stock offering, however, was that the Company incurred an ownership change within the guidelines of Section 382 of the Internal Revenue Code of 1986. At year-end 2020, the Company had net operating loss carryforwards of $22,416 , which expire at various dates from 2024 to 2032 . As a result of the ownership change, the Company's ability to utilize carryforwards that arose before the 2012 stock offering closed is limited to $163 per year. Due to this limitation, management determined it is more likely than not that $20,520 of net operating loss carryforwards will expire unutilized. As required by accounting standards, the Company reduced the carrying value of deferred tax assets, and the corresponding valuation allowance, by the $6,977 tax effect of this lost realizability. Federal income tax laws provided additional deductions, totaling $2,250 , for thrift bad debt reserves established before 1988. Accounting standards do not require a deferred tax liability to be recorded on this amount, which otherwise would have totaled $473 at year-end 2020. However, if CFBank were wholly or partially liquidated or otherwise ceases to be a bank, or if tax laws were to change, this amount would have to be recaptured and a tax liability recorded. Additionally, any distributions in excess of CFBank’s current or accumulated earnings and profits would reduce amounts allocated to its bad debt reserve and create a tax liability for CFBank. |
Related-Party Transactions
Related-Party Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Related-Party Transactions [Abstract] | |
Related-Party Transactions | NOTE 14 – RELATED-PARTY TRANSACTIONS Loans to principal officers, directors and their affiliates during 2020 and 2019 were as follows: Year ended December 31, 2020 2019 Beginning balance $ 6,113 $ 3,672 New loans 4,193 3,062 Repayments (29) (621) Ending balance $ 10,277 $ 6,113 All loans to related parties were made by CFBank in the ordinary course of business under terms equivalent to those prevailing in the market for arm’s length transactions at the time of origination. Deposits from principal officers, directors, and their affiliates totaled $3,844 and $976 at year-end 2020 and 2019, respectively. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2020 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | NOTE 15 – STOCK-BASED COMPENSATION The Company has two stock-based compensation plans (collectively, the “Plans”), as described below, under which awards are outstanding or may be granted in the future. Total compensation cost that has been charged against income for those Plans totaled $711 and $527 for 2020 and 2019, respectively. The total income tax benefit was $149 and $111 for 2020 and 2019, respectively. Both Plans are stockholder-approved and authorize stock option grants and restricted stock awards to be made to directors, officers and employees. The 2009 Equity Compensation Plan (the “2009 Plan”), which was approved by stockholders on May 21, 2009, replaced the Company’s 2003 equity compensation plan (the “2003 Plan”) and provided for 36,363 shares, plus any remaining shares available to grant or that are later forfeited or expire under the 2003 Plan, to be made available to be issued as stock option grants, stock appreciation rights or restricted stock awards. On May 16, 2013, the Company’s stockholders approved the First Amendment to the 2009 Plan to increase the number of shares of common stock reserved for stock option grants and restricted stock awards thereunder to 272,727 . The 2019 Equity Incentive Plan (the “2019 Plan”), which was approved by stockholders on May 29, 2019, authorizes up to 300,000 shares (plus any shares that are subject to grants under the 2009 Plan and that are later forfeited or expire), to be awarded as stock option grants, stock appreciation rights, restricted stock awards or restricted stock units. Stock Options: The Plans permit the grant of stock options to directors, officers and employees of the Holding Company and CFBank. Option awards are granted with an exercise price equal to the market price of the Company’s common stock on the date of grant, generally have vesting periods ranging from one to three years, and are exercisable for ten years from the date of grant. Unvested stock options immediately vest upon a change of control. The fair value of each option award is estimated on the date of grant using a closed form option valuation (Black-Scholes) model that uses the assumptions noted in the table below. Expected volatilities are based on historical volatilities of the Company’s common stock. The Company uses historical data to estimate option exercise and post-vesting termination behavior. Employee and management options are tracked separately. The expected term of options granted is based on historical data and represents the period of time that options granted are expected to be outstanding, which takes into account that the options are not transferable. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of the grant. There were no stock options granted during the years ended December 31, 2020 and December 31, 2019. There were 4,545 options exercised during the year ended December 31, 2020 and no options exercised during the year ended December 31, 2019. A summary of stock option activity in the Plans for 2020 follows: Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Intrinsic Value Outstanding at beginning of year 95,438 $ 7.64 Exercised (4,545) 7.98 Expired (437) 17.33 Cancelled or forfeited (14) 17.33 Outstanding at end of period 90,442 $ 7.57 2.4 $ 915 Exercisable at end of period 90,442 $ 7.57 2.4 $ 915 During the year ended December 31, 2020, stock options to purchase a total of 451 common shares were canceled, forfeited or expired. Stock options to purchase a total of 941 common shares were cancelled, forfeited or expired during the year ended December 31, 2019. Expense associated with unvested forfeited shares is reversed. As of December 31, 2020 and 2019, all stock options granted under the Plans were vested. Restricted Stock Awards: The Plans also permit the grant of restricted stock awards to directors, officers and employees. Compensation is recognized over the vesting period of the awards based on the fair value of the stock at grant date. The fair value of the stock is determined using the closing share price on the date of grant and shares generally have vesting periods of one to three years. There were 19,660 shares of restricted stock granted in 2020 and 73,738 shares of restricted stock granted in 2019. A summary of changes in the Company’s nonvested restricted shares for the year follows: Nonvested Shares Shares Weighted Average Grant-Date Fair Value Nonvested at January 1, 2020 102,916 $ 13.11 Granted 19,660 10.02 Vested (55,877) 13.18 Forfeited (6,897) 12.35 Nonvested at December 31, 2020 59,802 $ 12.12 As of December 31, 2020 and 2019, the unrecognized compensation cost related to nonvested shares granted under the Plans was $623 and $1,221 , respectively. There were 55,877 shares that vested during the year ended December 31, 2020 and 36,288 shares that vested during the year ended December 31, 2019. There were 6,897 and 3,858 shares of restricted stock forfeited during the years ended December 31, 2020 and December 31, 2019, respectively. The 2009 Plan terminated in accordance with its terms on March 19, 2019 and, as a result, no further awards may be granted under the 2009 Plan. There were 251,014 shares remaining available for awards of stock option grants, stock appreciation rights, restricted stock awards or restricted stock units under the 2019 Plan at December 31, 2020. |
Preferred Stock
Preferred Stock | 12 Months Ended |
Dec. 31, 2020 | |
Preferred Stock [Abstract] | |
Preferred Stock | NOTE 16 – PREFERRED STOCK Series B Preferred Stock: Commencing in April 2014, the Company conducted a private placement of up to 480,000 shares of its 6.25% Non-Cumulative Convertible Perpetual Preferred Stock, Series B (“Series B Preferred Stock”) for an offering price of $25.00 per share (the “2014 Private Placement”). Pursuant to the Private Placement, the Company sold an aggregate of 480,000 shares of Series B Preferred Stock on May 12, 2014 and July 15, 2014, for an aggregate offering price of $12,000 . After payment of approximately $482 in placement fees and approximately $149 of other offering expenses, the Company’s net proceeds from its sale of the 480,000 shares of Series B Preferred Stock in the Private Placement were approximately $11,369 . For each share of Series B Preferred Stock sold in the Private Placement, the Company also issued, at no additional charge, a Warrant to purchase common stock of the Company. See Note 17-Common Stock Warrants for additional information. Conversion of Series B Preferred Stock to Common Stock: On September 29, 2017, the Company announced the conversion of its Series B Preferred Stock into shares of Common Stock of the Company. The conversion was effective October 6, 2017, and resulted in the conversion of all 480,000 of the Company’s issued and outstanding shares of Series B Preferred Stock into approximately 6,857,143 shares of Common Stock (pr ior to the 1-for-5.5 reverse stock split effective August 20, 2018), or approximately 1,246,753 shares of Common Stock on a post-reverse-split basis. The conversion of the Series B Preferred Stock resulted in the elimination of the non-cumulative preferred dividend payments on the Series B Preferred Stock in the aggregate amount of approximately $188 quarterly ( $750 annually) beginning with the 4 th quarter of 2017. Series C Preferred Stock: On October 25, 2019, the Company entered into a Securities Purchase Agreement with certain accredited investors in a private placement for an aggregate offering price of approximately $25 million, pursuant to which on October 31, 2019, the Holding Company sold (i) 849,615 shares of the Company’s common stock, at a purchase price of $12.00 per share and (ii) 12,337 shares of a new series of the Company’s non-voting convertible perpetual preferred stock, series C, par value $0.01 per share (the “Series C Preferred Stock”), at a purchase price of $1,200.00 per share. Each share of Series C Preferred Stock was convertible either (i) automatically into 100 shares of the Company’s non-voting common stock, par value $0.01 per share (which is also convertible into Common Stock) (the “Non-Voting Common Stock”), effective as of the close of business on the date that the Company obtained stockholder approval for, and filed, a Certificate of Amendment to the Company’s Certificate of Incorporation to authorize such class of Non-Voting Common Stock; or (ii) unless previously converted into shares of Non-Voting Common Stock, into 100 shares of the Company’s common stock upon transfer of such shares of Series C Preferred Stock to a non-affiliate of the holder in specified permitted transactions. On March 30, 2020, the Company entered into an Exchange Agreement providing for the exchange of 27,000 of the shares of common stock purchased in the private placement for 270 additional shares of Series C Preferred Stock (at the Series C Preferred Stock’s current conversion ratio of 100 shares of common stock for each share of Series C Preferred Stock). The exchange of common stock for Series C Preferred Stock was effected in order to accommodate and facilitate the Company’s stock repurchase program announced on March 13, 2020. The exchange resulted in an increase in the number of outstanding shares of Series C Preferred Stock from 12,337 to 12,607 . Conversion of Series C Preferred Stock to Non-Voting Common Stock: On May 27, 2020, an amendment to the Company’s Certificate of Incorporation, as amended (the “Certificate of Incorporation”), to authorize a separate class of Non-Voting Common Stock was approved by the stockholders of the Company at the Company’s 2020 annual meeting of stockholders. On May 28, 2020, the Company filed with the Delaware Secretary of State a Certificate of Amendment to the Company’s Certificate of Incorporation to authorize 1,260,700 shares of Non-Voting Common Stock. Effective as of the close of business on May 28, 2020, all 1,260,700 authorized shares of Non-Voting Common Stock were issued upon conversion of the 12,607 outstanding shares of the Company’s Series C Preferred Stock. Pursuant to the terms of the Series C Preferred Stock, each outstanding share of Series C Preferred Stock converted automatically into 100 shares of Non-Voting Common Stock at such time. |
Common Stock Warrants
Common Stock Warrants | 12 Months Ended |
Dec. 31, 2020 | |
Common Stock Warrants [Abstract] | |
Common Stock Warrants | NOTE 17 – COMMON STOCK WARRANTS Series B Preferred Stock – Warrants: For each share of Series B Preferred Stock issued by the Company in the 2014 Private Placement, the Company also issued, at no additional charge, a Warrant to purchase shares of common stock of the Company. Warrants to purchase an aggregate of 1,152,125 shares of common stock (or 209,477 shares on a post-reverse-split basis) were issued by the Company to the purchasers of the 480,000 shares of Series B Preferred Stock sold in the Private Placement. The Warrants were exercisable for a period of approximately five (5) years expiring on July 15, 2019, at an exercise price of $10.18 (on a post-reverse-split basis) per share of common stock. As of December 31, 2020 and December 31, 2019, there were no outstanding warrants as all of the unexercised warrants expired on July 15, 2019. |
Regulatory Capital Matters
Regulatory Capital Matters | 12 Months Ended |
Dec. 31, 2020 | |
Regulatory Capital Matters [Abstract] | |
Regulatory Capital Matters | NOTE 18 – REGULATORY CAPITAL MATTERS CFBank is subject to regulatory capital requirements administered by federal banking agencies. Prompt corrective action regulations involve quantitative measures of assets, liabilities, and certain off balance-sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can initiate regulatory action. Prompt corrective action regulations provide five classifications for banking organizations: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If a banking organization is classified as adequately capitalized, regulatory approval is required to accept brokered deposits. If a banking organization is classified as undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. In July 2013, the Holding Company’s primary federal regulator, the FRB, published final rules (the “Basel III Capital Rules”) establishing a new comprehensive capital framework for U.S. banking organizations. The rules implement the Basel Committee's December 2010 framework known as “Basel III” for strengthening international capital standards as well as certain provisions of the Dodd-Frank Act. The Basel III Capital Rules provide higher capital requirements and more restrictive leverage and liquidity ratios than those previously in place. In addition, in order to avoid limitations on capital distributions, such as dividend payments and certain bonus payments to executive officers, the Basel III Capital Rules require insured financial institutions to hold a capital conservation buffer of common equity tier 1 capital above the minimum risk-based capital requirements. The capital conservation buffer was phased in over time, became fully effective on January 1, 2019, and consists of an additional amount of common equity equal to 2.5% of risk-weighted assets. The Basel III Capital Rules revise the regulatory agencies' prompt corrective action framework by incorporating the new regulatory capital minimums and updating the definition of common equity. The Basel III Capital Rules became effective for the Company on January 1, 2015, and were fully phased in effective January 1, 2019. Quantitative measures established by the Basel III Capital Rules to ensure capital adequacy require the maintenance of minimum amounts and ratios of Common Equity Tier 1 capital, Tier 1 capital and Total capital, as defined in the regulations, to risk-weighted assets, and of Tier 1 capital to adjusted quarterly average assets (“Leverage Ratio”). CFBank’s implementation of the new rules on January 1, 2015 did not have a material impact on our capital needs or classification. The Basel III Capital Rules require CFBank to maintain: 1) a minimum ratio of Common Equity Tier 1 capital to risk-weighted assets of 4.5% , plus a 2.5% “capital conservation buffer” (resulting in a minimum ratio of Common Equity Tier 1 capital to risk-weighted assets of 7.0% upon full implementation); 2) a minimum ratio of Tier 1 capital to risk-weighted assets of 6.0% , plus the capital conservation buffer (resulting in a minimum Tier 1 capital ratio of 8.5% upon full implementation); 3) a minimum ratio of Total capital to risk-weighted assets of 8.0% , plus the capital conservation buffer (resulting in a minimum Total capital ratio of 10.5% upon full implementation); and 4) a minimum Leverage Ratio of 4.0%. The capital conservation buffer is designed to absorb losses during periods of economic stress. Failure to maintain the minimum Common Equity Tier 1 capital ratio plus the capital conservation buffer will result in potential restrictions on a banking institution’s ability to pay dividends, repurchase stock and/or pay discretionary compensation to its employees . The following tables present actual and required capital ratios as of December 31, 2020 and December 31, 2019 for CFBank under the Basel III Capital Rules. Capital levels required to be considered well capitalized are based upon prompt corrective action regulations, as amended to reflect the changes under the Basel III Capital Rules. Actual Minimum Capital Required-Basel III Fully Phased-In To Be Well Capitalized Under Applicable Regulatory Capital Standards Amount Ratio Amount Ratio Amount Ratio December 31, 2020 Total Capital to risk weighted assets $ 136,683 14.31% $ 100,298 10.50% $ 95,522 10.00% Tier 1 (Core) Capital to risk weighted assets 124,678 13.05% 81,194 8.50% 76,418 8.00% Common equity tier 1 capital to risk-weighted assets 124,678 13.05% 66,866 7.00% 62,089 6.50% Tier 1 (Core) Capital to adjusted total assets (Leverage ratio) 124,678 9.74% 51,187 4.00% 63,984 5.00% Actual Minimum Capital Required-Basel III Fully Phased-In To Be Well Capitalized Under Applicable Regulatory Capital Standards Amount Ratio Amount Ratio Amount Ratio December 31, 2019 Total Capital to risk weighted assets $ 95,164 12.96% $ 77,097 10.50% $ 73,425 10.00% Tier 1 (Core) Capital to risk weighted assets 87,857 11.97% 62,412 8.50% 58,740 8.00% Common equity tier 1 capital to risk-weighted assets 87,857 11.97% 51,398 7.00% 47,726 6.50% Tier 1 (Core) Capital to adjusted total assets (Leverage ratio) 87,857 10.58% 33,221 4.00% 41,526 5.00% CFBank converted from a mutual to a stock institution in 1998, and a “liquidation account” was established with an initial balance of $14,300 , which was the net worth reported in the conversion prospectus. The liquidation account represents a calculated amount for the purposes described below, and it does not represent actual funds included in the consolidated financial statements of the Company. Eligible depositors who have maintained their accounts, less annual reductions to the extent they have reduced their deposits, would be entitled to a priority distribution from this account if CFBank liquidated and its assets exceeded its liabilities. Dividends may not reduce CFBank’s stockholder’s equity below the required liquidation account balance. Dividend Restrictions: Banking regulations require us to maintain certain capital levels and may limit the dividends paid by CFBank to the Holding Company or by the Holding Company to stockholders. The ability of the Holding Company to pay dividends on its stock is dependent upon the amount of cash and liquidity available at the Holding Company level, as well as the receipt of dividends and other distributions from CFBank to the extent necessary to fund such dividends. The Holding Company is a legal entity that is separate and distinct from CFBank, which has no obligation to make any dividends or other funds available for the payment of dividends by the Holding Company. The Holding Company also is subject to various legal and regulatory policies and guidelines impacting the Holding Company’s ability to pay dividends on its stock. In addition, the Holding Company’s ability to pay dividends on its stock is conditioned upon the payment, on a current basis, of quarterly interest payments on the subordinated debentures underlying the Company’s trust preferred securities. Finally, under the terms of the Holding Company’s fixed-to-floating rate subordinated debt, the Holding Company’s ability to pay dividends on its stock is conditioned upon the Holding Company continuing to make required principal and interest payments, and not incurring an event of default, with respect to the subordinated debt. Additionally, CFBank does not intend to make distributions to the Holding Company that would result in a recapture of any portion of its thrift bad debt reserve as discussed in Note 13-Income Taxes. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments [Abstract] | |
Derivative Instruments | NOTE 19 – DERIVATIVE INSTRUMENTS Interest-rate swaps: CFBank utilizes interest-rate swaps as part of its asset liability management strategy to help manage its interest rate risk position and does not use derivatives for trading purposes. The notional amount of the interest-rate swaps does not represent amounts exchanged by the parties. The amount exchanged is determined by reference to the notional amount and the other terms of the individual interest-rate swap agreements. CFBank was party to interest-rate swaps with a combined notional amount of $46,474 at December 31, 2020 and $12,039 at December 31, 2019. The objective of the interest-rate swaps is to protect the related fixed-rate commercial real estate loans from changes in fair value due to changes in interest rates. CFBank has a program whereby it lends to its borrowers at a fixed-rate with the loan agreement containing a two-way yield maintenance provision, which will be invoked in the event of prepayment of the loan, and is expected to exactly offset the fair value of unwinding the swap. The yield maintenance provision represents an embedded derivative which is bifurcated from the host loan contract and, as such, the swaps and embedded derivatives are not designated as hedges. Accordingly, both instruments are carried at fair value and changes in fair value are reported in current period earnings. CFBank currently does not have any derivatives designated as hedges. The counterparty to CFBank’s interest-rate swaps is exposed to credit risk whenever the interest-rate swaps are in a liability position. At December 31, 2020, CFBank had $2,392 in securities and cash pledged as collateral for these derivatives. Should the liability increase beyond the collateral value, CFBank may be required to pledge additional collateral. Additionally, CFBank’s interest-rate swap instruments contain provisions that require CFBank to remain well capitalized under regulatory capital standards and to comply with certain other regulatory requirements. The interest-rate swaps may be called by the counterparty if CFBank fails to maintain well-capitalized status under regulatory capital standards or becomes subject to certain adverse regulatory events such as a regulatory cease and desist order. As of December 31, 2020, CFBank was well-capitalized under regulatory capital standards and was not subject to any adverse regulatory events specified in CFBank’s interest-rate swap instruments. Summary information about the derivative instruments is as follows: 2020 2019 Notional amount $ 46,474 $ 12,039 Weighted average pay rate on interest-rate swaps 4.19% 4.66% Weighted average receive rate on interest-rate swaps 3.08% 4.63% Weighted average maturity (years) 7.4 7.3 Fair value of interest-rate swaps $ (1,944) $ (12) Fair value of yield maintenance provisions $ 1,944 $ 12 As of December 31, 2020, CFBank had minimum collateral posting thresholds with certain of its interest-rate swap counterparties and has posted cash collateral of $2,392. The fair value of the yield maintenance provisions and interest-rate swaps is recorded in other assets and other liabilities, respectively, in the consolidated balance sheet. Changes in the fair value of the yield maintenance provisions and interest-rate swaps are reported currently in earnings, as other noninterest income in the consolidated statements of income. There were no net gains or losses recognized in earnings related to yield maintenance provisions and interest-rate swaps in 2020 or 2019. Mortgage banking derivatives: Commitments to fund certain mortgage loans (interest rate locks) to be sold into the secondary market are considered derivatives. These mortgage banking derivatives are not designated in hedge relationships. The Company had approximately $1,048,613 and $297,454 of interest rate lock commitments related to residential mortgage loans at December 31, 2020 and December 31, 2019, respectively. The fair value of these mortgage banking derivatives was reflected by a derivative asset of $18,100 and $3,104 at December 31, 2020 and December 31, 2019, respectively, which was included in other assets in the consolidated balance sheet. Fair values were estimated based on anticipated gains on the sale of the underlying loans. Changes in the fair values of these mortgage banking derivatives are included in net gains on sales of loans. Mortgage banking activities include two types of commitments: rate lock commitments and forward loan commitments. Rate lock commitments are loans in our pipeline that have an interest rate locked with the customer. The commitments are generally for periods of 30 - 60 days and are at market rates. In order to mitigate the effect of the interest rate risk inherent in providing rate lock commitments, we economically hedge our commitments by entering into either a forward loan sales contract under best efforts or a trade of “to be announced (TBA)” mortgage-backed securities (“notional securities”) for mandatory delivery. The Company had approximately $506,750 and $225,500 of TBA mortgage-backed securities at December 31, 2020 and December 31, 2019, respectively. The fair value of these TBA mortgage-backed securities was ($2,690) and ($350) at December 31, 2020 and December 31, 2019, respectively, which is included in other liabilities on the consolidated balance sheet. The changes in fair value related to movements in market rates of the rate lock commitments and the forward loan sales contracts and notional securities generally move in opposite directions, and the net impact of changes in these valuations on net income during the loan commitment period is generally inconsequential. The Company has not formally designated these derivatives as a qualifying hedge relationship and, accordingly, accounts for such forward contracts as freestanding derivatives with changes in fair value recorded to earnings each period. The following table reflects the amount and market value of mortgage banking derivatives included in the consolidated balance sheet as of the period end: December 31, 2020 December 31, 2019 Notional Amount Fair Value Notional Amount Fair Value Assets (Liabilities): Interest rate commitments $ 1,048,613 $ 18,100 $ 297,454 $ 3,104 TBA mortgage-back securities 506,750 (2,690) 225,500 (350) As of December 31, 2020, CFBank had minimum collateral posting thresholds with certain of its derivative counterparties and has posted cash collateral of $4,847 . The following table represents the notional amount of loans sold during the years ended December 31, 2020 and 2019: 2020 2019 Notional amount of loans sold $ 2,229,042 $ 411,257 The following table represents the revenue recognized on mortgage activities for the years ended December 31, 2020 and 2019: December 31, 2020 December 31, 2019 Gain on loans sold 61,146 9,603 Gain (loss) from change in fair value of loans held-for-sale 7,046 1,341 Gain (loss) from change in fair value of derivatives (9,895) (490) $ 58,297 $ 10,454 |
Loan Commitments And Other Rela
Loan Commitments And Other Related Activities | 12 Months Ended |
Dec. 31, 2020 | |
Loan Commitments And Other Related Activities [Abstract] | |
Loan Commitments And Other Related Activities | NOTE 20 – LOAN COMMITMENTS AND OTHER RELATED ACTIVITIES Some financial instruments, such as loan commitments, credit lines, letters of credit and overdraft protection, are issued to meet customer financing needs. These are agreements to provide credit or to support the credit of others, as long as conditions established in the contract are met, and usually have expiration dates. Commitments may expire without being used. Off ‑balance-sheet risk to credit loss exists up to the face amount of these instruments, although material losses are not anticipated. The same credit policies are used to make such commitments as are used for loans, including obtaining collateral at exercise of the commitment. The contractual amounts of financial instruments with off-balance-sheet risk at year end were as follows: 2020 2019 Fixed Rate Variable Rate Fixed Rate Variable Rate Commitments to make loans $ 1,072,963 $ 31,239 $ 314,705 $ 43,979 Unused lines of credit $ 20,395 $ 65,788 $ 10,678 $ 55,684 Standby letters of credit $ 3,997 $ - $ 1,415 $ - Commitments to make loans are generally made for periods of 60 days or less, except for construction loan commitments, which are typically for a period of one year, and loans under a specific drawdown schedule, which are based on the individual contracts. The fixed-rate loan commitments had interest rates ranging from 2.00% to 6.50% and maturities ranging from 1 months to 30 years at December 31, 2020. The fixed-rate loan commitments had interest rates ranging from 2.00% to 8.75% and maturities ranging from 3 months to 30 years at December 31, 2019. |
Parent Company Only Condensed F
Parent Company Only Condensed Financial Information | 12 Months Ended |
Dec. 31, 2020 | |
Parent Company Only Condensed Financial Information [Abstract] | |
Parent Company Only Condensed Financial Information | NOTE 21 – PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION Condensed financial information of CF Bankshares Inc. follows: 2020 2019 Assets Cash and cash equivalents $ 1,785 $ 10,037 Equity securities 5,000 - Investment in banking subsidiary 125,172 88,317 Investment in and advances to other subsidiary 241 238 Other assets 2,533 2,045 Total assets $ 134,731 $ 100,637 Liabilities and Equity Subordinated debentures $ 14,844 $ 14,806 Other borrowings 9,500 5,000 Accrued expenses and other liabilities 177 167 Stockholders' equity 110,210 80,664 Total liabilities and stockholders' equity $ 134,731 $ 100,637 2020 2019 Interest income $ - $ - Other income 178 70 Interest expense 1,209 1,353 Other expense 830 758 Loss before income tax and before undistributed subsidiary income (1,861) (2,041) Tax effect 390 427 Loss after income tax and before undistributed subsidiary income (1,471) (1,614) Equity in undistributed subsidiary income 31,079 11,215 Net income $ 29,608 $ 9,601 Comprehensive income $ 29,676 $ 9,702 2020 2019 Cash flows from operating activities Net Income $ 29,608 $ 9,601 Adjustments: Effect of subsidiaries' operations (31,079) (11,215) Amortization, net 38 39 Change in other assets and other liabilities (480) (939) Net cash used by operating activities (1,913) (2,514) Cash flows from investing activities Investments in banking subsidiary (5,000) (14,000) Purchase of equity securities (5,000) - Net cash used by investing activities (10,000) (14,000) Cash flows from financing activities Proceeds from other borrowings 15,000 4,000 Repayments of other borrowings (10,500) (5,000) Net proceeds from the issuance of preferred stock private placement - 14,000 Net proceeds from the issuance of common stock private placement - 9,641 Proceeds from exercise of stock options 36 - Acquisition of treasury shares surrendered upon vesting of restricted stock for payment of taxes (32) (23) Purchase of treasury shares (648) - Exercise of warrants to common stock - 1,258 Dividends paid (195) - Net cash from financing activities 3,661 23,876 Net change in cash and cash equivalents (8,252) 7,362 Beginning cash and cash equivalents 10,037 2,675 Ending cash and cash equivalents $ 1,785 $ 10,037 |
Earnings Per Common Share
Earnings Per Common Share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Common Share [Abstract] | |
Earnings Per Common Share | NOTE 22 – EARNINGS PER COMMON SHARE The two-class method is used in the calculation of basic and diluted earnings per share. Under the two-class method, earnings available to common stockholders for the period are allocated between common stockholders and participating securities (certain unvested share-based awards and Series C preferred stock outstanding) according to dividends declared (or accumulated) and participation rights in undistributed earnings. The factors used in the earnings per share computation follow: December 31, 2020 December 31, 2019 Basic Net income $ 29,608 $ 9,601 Accretion of discount and value of warrants exercised related to Series B preferred stock (1) - 219 Earnings allocated to participating securities (Series C preferred stock) (2) (2,280) (430) Net income allocated to common stockholders $ 27,328 $ 9,390 Weighted average common shares outstanding including unvested share-based payment awards 6,072,829 4,582,997 Less: Unvested share-based payment awards-2019 Plan (43,732) (1,532) Average shares 6,029,097 4,581,465 Basic earnings per common share $ 4.53 $ 2.05 Diluted Net earnings allocated to common stockholders $ 27,328 $ 9,390 Add back: Preferred Dividends on Series B stock and accretion of discount - - Net earnings allocated to common stockholders $ 27,328 $ 9,390 Weighted average common shares outstanding for basic earnings per common share 6,029,097 4,581,465 Add: Dilutive effects of assumed exercises of stock options 34,158 38,620 Add: Dilutive effects of assumed exercises of stock warrants - 6,947 Add: Dilutive effects of unvested share-based payment awards-2019 Plan 43,732 1,532 Average shares and dilutive potential common shares 6,106,987 4,628,564 Diluted earnings per common share $ 4.47 $ 2.03 (1) All outstanding warrants expired on July 15, 2019. (2) All 12,607 outstanding shares of Series C preferred stock were converted into a total of 1,260,700 shares of the Company’s Non-Voting Common Stock effective as of the close of business on May 28, 2020. The following securities were anti-dilutive and not considered in computing diluted earnings per common share. 2020 2019 Stock options 331 463 |
Contingent Liabilities
Contingent Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Contingent Liabilities [Abstract] | |
Contingent Liabilities | NOTE 23 - CONTINGENT LIABILITIES General Litigation: The Company is subject to claims and lawsuits that arise primarily in the ordinary course of business. It is the opinion of management that the disposition or ultimate resolution of such claims and lawsuits will not have a material adverse effect on the consolidated financial position, results of operations and cash flows of the Company. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2020 | |
Accumulated Other Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive Income | NOTE 24 - ACCUMULATED OTHER COMPREHENSIVE INCOME The following table summarizes the changes within each classification of accumulated other comprehensive income, net of tax, for the years ended December 31, 2020 and December 31, 2019 and summarizes the significant amounts reclassified out of each component of accumulated other comprehensive income: Changes in Accumulated Other Comprehensive Income by Component For the Year Ended December 31, 2020 and 2019 (1) Unrealized Gains and Losses on Available-for-Sale Securities 2020 2019 Accumulated other comprehensive gain/(loss), beginning of period $ 28 $ (73) Other comprehensive gain before reclassifications 68 101 Less amount reclassified from accumulated other comprehensive loss (2) - - Net current-period other comprehensive income 68 101 Accumulated other comprehensive income, end of period $ 96 $ 28 (1) All amounts are net of tax. Amounts in parentheses indicate a reduction of other comprehensive income. (2) There were no amounts reclassified out of other comprehensive income for years ended December 31, 2020 and December 31, 2019. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 25- SUBSEQUENT EVENTS On December 29, 2020, CFBank entered into a Branch Purchase and Assumption Agreement (the “P&A Agreement”) with Consumers National Bank (“Consumers”) pursuant to which Consumers will acquire the two branches of CFBank in Columbiana County, Ohio – CFBank’s drive-up branch location in Wellsville, Ohio and CFBank’s branch location in Calcutta, Ohio (the “Branches”). The P&A Agreement provides for the sale and transfer by CFBank to Consumers of the land, buildings and other associated assets of the Branches; approximately $100 million in deposits attributable to the Branches; $15 million in aggregate principal amount of subordinated debt securities issued by unrelated financial institutions and held in CFBank’s portfolio; all performing loans attributable to the Branches which are outstanding at closing (totaling approximately $3.1 million in aggregate principal amount as of November 30, 2020); and up to $13.5 million in aggregate principal amount of single family residential mortgage loans and home equity lines of credit to be identified by the parties prior to the closing principally from CFBank’s Northeast Ohio loan portfolio. In exchange, Consumers will pay to CFBank the net book value of the land, building and associated assets of the Branches, a deposit premium equal to 1.75% of the average daily deposits of the Branches for the 30 days preceding the closing, and the par value of the subordinated debt securities and loans acquired by Consumers. The determination of the actual amount of deposit liabilities and the identification of the actual loans to be sold to Consumers is still being finalized. The closing of the transactions contemplated by the P&A Agreement is subject to regulatory approval and satisfaction of other customary closing conditions. The parties expect the closing of the transactions to occur in the third calendar quarter of 2021. On January 28, 2021, the Board of Directors of the Company authorized a new stock repurchase program pursuant to which the Company may repurchase up to 250,000 of the Company’s outstanding common stock on or before February 27, 2022 . Under the stock repurchase program, the Company may purchase shares of its common stock from time to time through various means, including open market transactions and privately negotiated transactions. Open market repurchases will be made in accordance with applicable securities laws and regulations, including Rule 10b-18 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and may be effected pursuant to Rule 10b5-1 under the Exchange Act. The manner, timing and amount of any stock repurchases will be determined by the Company’s management in its discretion based on its evaluation of various factors, including the trading price of the Company’s common stock, market and economic conditions, regulatory requirements and other corporate considerations. The repurchase program may be suspended or discontinued at any time . |
Summary Of Significant Accoun_2
Summary Of Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2020 | |
Summary Of Significant Accounting Policies [Abstract] | |
Nature Of Operations And Principles Of Consolidation | Nature of Operations and Principles of Consolidation : The consolidated financial statements include CF Bankshares, Inc. (the “Holding Company”) and its wholly-owned subsidiary, CFBank, National Association (“CFBank”). On December 1, 2016, CFBank converted from a federal savings institution to a national bank. Prior to December 1, 2016, the Holding Company was a registered savings and loan holding company. Effective as of December 1, 2016 and in conjunction with the conversion of CFBank to a national bank, the Holding Company became a registered bank holding company and elected financial holding status with the FRB . Effective as of July 27, 2020, the Company changed its name from Central Federal Corporation to CF Bankshares Inc. The Holding Company and CFBank are sometimes collectively referred to herein as the “Company”. Intercompany transactions and balances are eliminated in consolidation. CFBank provides financial services through its six full-service banking offices in Worthington, Fairlawn, Glendale, Blue Ash, Calcutta, and Wellsville, Ohio, and through its loan production office in Columbus, Ohio and its agency office in Woodmere, Ohio. Its primary deposit products are commercial and retail checking, savings, money market and term certificate accounts. Its primary lending products are commercial and commercial real estate, residential mortgages and installment loans. There are no significant concentrations of loans to any one industry or customer segment. However, our customers’ ability to repay their loans is dependent on general economic conditions and the real estate values in their geographic areas. |
Use Of Estimates | Use of Estimates : To prepare financial statements in conformity with U.S. generally accepted accounting principles (GAAP), management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and actual results could differ. The allowance for loan and lease losses (ALLL), deferred tax assets and fair values of financial instruments are particularly subject to change. |
Cash Flows | Cash Flows : Cash and cash equivalents include cash, deposits with other financial institutions with maturities fewer than 90 days and federal funds sold. Net cash flows are reported for customer loan and deposit transactions, interest-bearing deposits in other financial institutions and borrowings with original maturities under 90 days. |
Cash In Excess Of FDIC Limits | Cash in Excess of FDIC Limits: At December 31, 2020, the Company’s cash accounts exceeded federally insured limits by approximately $215.7 million. Approximately $203.0 million of that amount was held by either the Federal Reserve Bank or the Federal Home Loan Bank of Cincinnati, which is not federally insured. |
Interest-Bearing Deposits In Other Financial Institution | Interest-Bearing Deposits in Other Financial Institution : Interest-bearing deposits in other financial institutions mature in April, 2022 and are carried at cost. As of December 31, 2020 and December 31, 2019, there was $100 in an interest-bearing deposit in other financial institutions. |
Securities | Securities : Debt securities are classified as available for sale when they might be sold before maturity. Securities available for sale are carried at fair value, with unrealized holding gains and losses reported in other comprehensive income. Interest income includes amortization of purchase premium or accretion of discount. Premiums and discounts on securities are amortized or accreted on the level-yield method, except for mortgage-backed securities and collateralized mortgage obligations where prepayments are anticipated based on industry payment trends. Gains and losses on sales are recorded on the trade date and determined using the specific identification method. Management evaluates securities for other-than-temporary impairment (OTTI) at least on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or will more likely than not be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: 1) OTTI related to credit loss, which must be recognized in the income statement and 2) OTTI related to other factors, which is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. For equity securities, the entire amount of impairment is recognized through earnings. |
Equity Securities | Equity Securities : Equity securities without a readily determinable fair value are held at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. For equity securities measured under the practicability exception under Accounting Standards Update (“ASU”) 2016-01, the Company performs a qualitative assessment for equity securities without readily determinable fair values considering impairment indicators to evaluate whether an impairment exists. If an impairment exists, the Company will recognize a loss based on the difference between carrying value and fair value. |
Loans Held For Sale | Loans Held for Sale : Mortgage loans originated and intended for sale in the secondary market are carried at fair value, as determined by outstanding commitments from investors. Mortgage loans held for sale are generally sold with servicing rights released. The carrying value of mortgage loans sold is reduced by the amount allocated to the servicing rights when mortgage loans held for sale are sold with servicing rights retained. Loans originated as construction loans, that were subsequently transferred to held for sale, are carried at the lower of cost or market. Gains and losses on sales of mortgage loans are based on the difference between the selling price and the carrying value of the related loan sold. |
Loans And Leases | Loans and Leases : Loans and leases that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding, adjusted for purchase premiums and discounts, deferred loan fees and costs and an allowance for loan and lease losses (ALLL). Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the level yield method without anticipating prepayments. The accrual of interest income on all classes of loans, except other consumer loans, is discontinued and the loan is placed on nonaccrual status at the time the loan is 90 days delinquent unless the loan is well-secured and in process of collection. Other consumer loans are typically charged off no later than 90 days past due. Past due status is based on the contractual terms of the loan for all classes of loans. In all cases, loans are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. Nonaccrual loans and loans past due 90 days still on accrual include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. Commercial, multi-family residential real estate loans and commercial real estate loans placed on nonaccrual status are individually classified as impaired loans. All interest accrued but not received for each loan placed on nonaccrual is reversed against interest income in the period in which it is placed in a nonaccrual status. Interest received on such loans is accounted for on the cash-basis or cost recovery method, until qualifying for return to accrual status. Loans are considered for return to accrual status provided all the principal and interest amounts that are contractually due are brought current, there is a current and well documented credit analysis, there is reasonable assurance of repayment of principal and interest, and the customer has demonstrated sustained, amortizing payment performance of at least six months. |
Concentration Of Credit Risk | Concentration of Credit Risk : Most of the Company’s primary business activity is with customers located within the Ohio counties of Franklin, Hamilton, Cuyahoga, Summit, Columbiana and contiguous counties. Therefore, the Company’s exposure to credit risk can be affected by changes in the economies within these counties. Although these counties are the Company’s primary market area for loans, the Company originates residential and commercial real estate loans throughout the United States. |
Allowance For Loan And Lease Losses (ALLL) | Allowance for Loan and Lease Losses (ALLL) : The ALLL is a valuation allowance for probable incurred credit losses. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. Management estimates the allowance balance required using past loan loss experience, the nature and volume of the portfolio, information about specific borrower situations and estimated collateral values, economic conditions, and other factors. Allocations of the allowance may be made for specific loans, but the entire allowance is available for any loan that, in management’s judgment, should be charged off. The allowance consists of specific and general components. The specific component relates to loans that are individually classified as impaired. A loan is impaired when, based on current information and events, it is probable that CFBank will be unable to collect all amounts due according to the contractual terms of the loan agreement. Loans within any loan class for which the terms have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings (TDRs) and classified as impaired. Factors considered by management in determining impairment for all loan classes include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. All substandard loans within the commercial, multi-family residential, commercial real estate and construction segments are individually evaluated for impairment when they are 90 days past due, or earlier than 90 days past due if information regarding the payment capacity of the borrower indicates that payment in full according to the loan terms is doubtful. If a loan is impaired, a portion of the allowance is allocated so that the loan is reported, net, at the present value of estimated future cash flows using the loan’s existing rate, or at the fair value of collateral, less costs to sell, if repayment is expected solely from the collateral. Large groups of smaller balance homogeneous loans, such as consumer and single-family residential real estate loans, are collectively evaluated for impairment, and accordingly, they are not separately identified for impairment disclosures. TDRs of all classes of loans are separately identified for impairment disclosures and are measured at the present value of estimated future cash flows using each loan’s effective rate at inception. If a TDR is considered to be a collateral dependent loan, the loan is reported, net, at the fair value of the collateral. If the payment of the loan is dependent on the sale of the collateral, then costs to liquidate the collateral are included when determining the impairment. For TDRs that subsequently default, the amount of reserve is determined in accordance with the accounting policy for the ALLL. Interest income on all classes of impaired loans that are on nonaccrual status is recognized in accordance with the accounting policy for nonaccrual loans. Cash receipts on all classes of impaired loans that are on nonaccrual status are generally applied to the principal balance outstanding. Interest income on all classes of impaired loans that are not on nonaccrual status is recognized on the accrual method. TDRs may be classified as accruing if the borrower has been current for a period of at least six months with respect to loan payments and management expects that the borrower will be able to continue to make payments in accordance with the terms of the restructured note. The general reserve component covers non-impaired loans of all classes and is based on historical loss experience adjusted for current factors. The historical loss experience is determined by loan class and is based on the actual loss history experienced by the Company over a three-year period. The general component is calculated based on CFBank’s loan balances and actual three-year historical loss rates. For loans with little or no actual loss experience, industry estimates are used based on loan segment. This loss experience is supplemented with other economic and judgmental factors based on the risks present for each loan class. These economic and judgmental factors include consideration of the following: levels of and trends in delinquencies and impaired loans; levels of and trends in charge-offs and recoveries; trends in volume and terms of loans; effects of any changes in risk selection and underwriting standards; other changes in lending policies, procedures, and practices; experience, ability, and depth of lending management and other relevant staff; national and local economic trends and conditions; industry conditions; and effects of changes in credit concentrations. The following portfolio segments have been identified: commercial loans; single-family residential real estate loans; multi-family residential real estate loans; commercial real estate loans; construction loans; home equity lines of credit; and other consumer loans. A description of each segment of the loan portfolio, along with the risk characteristics of each segment, is included below. Commercial loans: Commercial loans and direct financing leases include loans and leases to businesses generally located within our primary market area. Those loans and leases are typically secured by business equipment, inventory, accounts receivable and other business assets. In underwriting commercial loans, we consider the net operating income of the borrower, the debt service ratio and the financial strength, expertise and credit history of the business owners and/or guarantors. Because payments on commercial loans are dependent on successful operation of the business enterprise, repayment of such loans may be subject to a greater extent to adverse conditions in the economy. We seek to mitigate these risks through underwriting policies which require such loans to be qualified at origination on the basis of the borrower’s financial performance and the financial strength of the business owners and/or guarantors. Single-family residential real estate loans: Single-family residential real estate loans include permanent conventional mortgage loans secured by single-family residences that we originate for portfolio and purchased loans located primarily within our primary market area. Credit approval for single-family residential real estate loans requires demonstration of sufficient income to repay the principal and interest and the real estate taxes and insurance, stability of employment and an established credit record. Our policy is to originate quality loans that are evaluated for risk based on the borrower’s ability to repay the loan. Collateral positions are established by obtaining independent appraisal opinions. Mortgage insurance is generally required when the LTV exceeds 80% . Multi-family residential real estate loans: Multi-family residential real estate loans include loans secured by apartment buildings, condominiums and multi-family residential houses generally located within our primary market area. Underwriting policies provide that multi-family residential real estate loans generally may be made in amounts up to 85% of the lower of the appraised value or purchase price of the property. In underwriting multi-family residential real estate loans, we consider the appraised value and net operating income of the property, the debt service ratio and the property owner’s and/or guarantor’s financial strength, expertise and credit history. We offer both fixed-rate and adjustable-rate loans. Fixed-rate loans are generally limited to three to five years, at which time they convert to adjustable-rate loans. Because payments on loans secured by multi-family residential properties are dependent on successful operation or management of the properties, repayment of multi-family residential real estate loans may be subject to a greater extent to adverse conditions in the real estate market or the economy. Adjustable-rate multi-family residential real estate loans generally pose credit risks not inherent in fixed-rate loans, primarily because as interest rates rise, the borrowers’ payments rise, increasing the potential for default. Additionally, adjustable-rate multi-family residential real estate loans generally do not contain periodic and lifetime caps on interest rate changes. We seek to minimize the additional risk presented by adjustable-rate multi-family residential real estate loans through underwriting criteria that require such loans to be qualified at origination with sufficient debt coverage ratios under increasing interest rate scenarios. Commercial real estate loans: Commercial real estate loans include loans secured by owner occupied and non-owner occupied properties used for business purposes, such as manufacturing facilities, office buildings or retail facilities generally located within our primary market area. Underwriting policies provide that commercial real estate loans may be made in amounts up to 85% of the lower of the appraised value or purchase price of the property. In underwriting commercial real estate loans, we consider the appraised value and net operating income of the property, the debt service ratio and the property owner’s and/or guarantor’s financial strength, expertise and credit history. We offer both fixed and adjustable-rate loans. Fixed-rate loans are generally limited to three to five years, at which time they convert to adjustable-rate loans. Because payments on loans secured by commercial real estate properties are dependent on successful operation or management of the properties, repayment of commercial real estate loans may be subject to a greater extent to adverse conditions in the real estate market or the economy. Adjustable-rate commercial real estate loans generally pose credit risks not inherent in fixed-rate loans, primarily because as interest rates rise, the borrowers’ payments rise, increasing the potential for default. Additionally, adjustable-rate commercial real estate loans generally do not contain periodic and lifetime caps on interest rate changes. We seek to minimize the additional risk presented by adjustable-rate commercial real estate loans through underwriting criteria that require such loans to be qualified at origination with sufficient debt coverage ratios under increasing interest rate scenarios. Construction loans: Construction loans include loans to finance the construction of residential and commercial properties generally located within our primary market area. Construction loans are fixed-rate or adjustable-rate loans which may convert to permanent loans with maturities of up to 30 years. Our policies provide that construction loans may generally be made in amounts up to 80% of the appraised value of the property, and an independent appraisal of the property is required. Loan proceeds are disbursed in increments as construction progresses and as inspections warrant, and regular inspections are required to monitor the progress of construction. In underwriting construction loans, we consider the property owner’s and/or guarantor’s financial strength, expertise and credit history. Construction financing is considered to involve a higher degree of credit risk than long-term financing on improved, owner occupied real estate. Risk of loss on a construction loan is dependent largely upon the accuracy of the initial estimate of the property’s value at completion of construction or development compared to the estimated cost (including interest) of construction. If the estimate of value proves to be inaccurate, we may be confronted with a project, when completed, having a value which is insufficient to assure full repayment. We attempt to reduce such risks on construction loans through inspections of construction progress on the property and by requiring personal guarantees and reviewing current personal financial statements and tax returns, as well as other projects of the developer. Home equity lines of credit: Home equity lines of credit include both loans we originate for portfolio and purchased loans. We originate home equity lines of credit to customers generally within our primary market area. Home equity lines of credit are variable rate loans and the interest rate adjusts monthly at various margins to the prime rate of interest as disclosed in The Wall Street Journal. The margin is based on certain factors including the loan balance, value of collateral, election of auto-payment, and the borrower’s FICO® score. The amount of the line is based on the borrower’s credit, income and equity in the home. When combined with the balance of the prior mortgage liens, these lines generally may not exceed 89.9% of the appraised value of the property at the time of the loan commitment. The lines are secured by a subordinate lien on the underlying real estate and are, therefore, vulnerable to declines in property values in the geographic areas where the properties are located. Credit approval for home equity lines of credit requires income sufficient to repay principal and interest due, stability of employment, an established credit record and sufficient collateral. Collectability of home equity lines of credit are dependent on the borrower's continuing financial stability, and thus are more likely to be affected by adverse personal circumstances. We continue to monitor collateral values and borrower FICO® scores on both purchased and portfolio loans and, when the situation warrants, have frozen the lines of credit. Other consumer loans: Other consumer loans include closed-end home equity, home improvement, auto, credit card loans and any purchased loans to consumers generally located within our primary market area. Credit approval for other consumer loans requires income sufficient to repay principal and interest due, stability of employment, an established credit record and sufficient collateral for secured loans. Consumer loans typically have shorter terms and lower balances with higher yields as compared to real estate mortgage loans, but generally carry higher risks of default. Consumer loan collections are dependent on the borrower's continuing financial stability, and thus are more likely to be affected by adverse personal circumstances. CFBank’s charge-off policy for commercial loans, single-family residential real estate loans, multi-family residential real estate loans, commercial real estate loans, construction loans and home equity lines of credit requires management to record a specific reserve or charge-off as soon as it is apparent that the borrower is troubled and there is, or likely will be, a collateral shortfall related to the estimated value of the collateral securing the loan. Other consumer loans are typically charged off no later than 90 days past due . |
Transfers Of Financial Assets | Transfers of Financial Assets : Transfers of financial assets are accounted for as sales when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. |
Foreclosed Assets | Foreclosed Assets : Assets acquired through or instead of loan foreclosure are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. If fair value declines subsequent to foreclosure, an adjustment is recorded through expense. Operating costs after acquisition are expensed. |
Low Income Housing Tax Credits (LIHTC) | Low Income Housing Tax Credits (LIHTC): The Company has invested in low income housing tax credits through funds that assist corporations in investing in limited partnerships and limited liability companies that own, develop and operate low income residential rental properties for purposes of qualifying for the Housing Tax credit. These investments are accounted for under the proportional amortization method which recognizes the amortization of the investment in proportion to the tax credit and other tax benefits received. |
Historic Tax Credits | Historic Tax Credits: In June 2019, the Company made an equity investment as a non-managing member in an entity that is expected to receive historic tax credits (HTC) pursuant to Section 47 of the Internal Revenue Code. The Company expects to receive a return through the realization of federal income tax credits, as well as other tax benefits, such as tax deductions from net operating losses of the investment over a period of time. The HTC investment is accounted for under the equity method of accounting and is included in accrued interest receivable and other assets on the consolidated balance sheets. The Company’s recorded investment in this entity was $0 at December 31, 2020 and $894 at December 31, 2019. The maximum exposure to loss related to these investments was $0 at December 31, 2020, representing the Company’s investment balance . |
Joint Ventures | Joint Ventures: The Holding Company has contributed funds into a series of joint ventures (equity stake) for the purpose of allocating excess liquidity into higher earning assets while diversifying its revenue sources. The joint ventures are engaged in shorter term operating activities related to single family real estate developments. Income is recognized based on a rate of return on the outstanding investment balance. As units are sold, the Holding Company receives an additional incentive payment, which is recognized as income. Under ASU 2016-15, the Company has elected the nature of distribution approach to recognize returns from equity method investments. Returns on investment are classified as cash flows from operating activities and returns of investment are classified as investing activities. The balance outstanding in joint ventures at December 31, 2020 and December 31, 2019 was $1,406 and $1,000 , respectively. Income recognized on the joint ventures was $173 and $57 , respectively, for 2020 and 2019. |
Premises And Equipment | Premises and Equipment : Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. Buildings and related components are depreciated using the straight ‑line method with useful lives ranging from 3 to 40 years. Furniture, fixtures and equipment are depreciated using the straight ‑line method with useful lives ranging from 2 to 25 years. Leasehold improvements are depreciated straight-line over the shorter of the useful life or the lease term. |
Federal Home Loan Bank (FHLB) Stock | Federal Home Loan Bank (FHLB) stock: CFBank is a member of the FHLB system. Members are required to own a certain amount of FHLB stock based on the level of borrowings and other factors, and may invest in additional amounts. FHLB stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income. |
Federal Reserve Bank (FRB) Stock | Federal Reserve Bank (FRB) stock: CFBank is a member of the FRB system and is required to own a certain amount of stock. FRB stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income. |
Bank Owned Life Insurance | Bank Owned Life Insurance : CFBank has purchased life insurance policies on certain directors and employees. Bank owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. |
Loan Commitments And Related Financial Instruments | Loan Commitments and Related Financial Instruments : Financial instruments include off ‑balance-sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded, and fees associated with origination are booked to non-interest income at the origination date. |
Derivatives | Derivatives : Derivative financial instruments are recognized as assets or liabilities at fair value. The Company's derivatives consist mainly of interest rate swap agreements, which are used as part of its asset liability management program to help manage interest rate risk. The Company does not use derivatives for trading purposes. The derivative transactions are considered instruments with no hedging designation, otherwise known as stand-alone derivatives. Changes in the fair value of the derivatives are reported currently in earnings, as other noninterest income. |
Mortgage Banking Derivatives | Mortgage Banking Derivatives : Commitments to fund mortgage loans to be sold into the secondary market, otherwise known as interest rate locks, are accounted for as free standing derivatives. Mortgage banking activities include two types of commitments: rate lock commitments and forward loan commitments. Fair values of these mortgage derivatives are based on anticipated gains on the underlying loans. Changes in the fair values of these derivatives are included in net gains on sales of loans. |
Stock-Based Compensation | Stock-Based Compensation : Compensation cost is recognized for stock options and restricted stock awards issued to directors and employees, based on the fair value of these awards at the date of grant. A Black-Scholes model is utilized to estimate the fair value of stock options, while the market price of the Company’s common stock at the date of grant is used for restricted stock awards. Compensation cost is recognized over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the required service period for each separately vesting portion of the award. Forfeitures are recognized as incurred. |
Income Taxes | Income Taxes : Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax basis of assets and liabilities, computed using enacted tax rates. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company recognizes interest related to income tax matters as interest expense and penalties related to income tax matters as other noninterest expense. |
Retirement Plans | Retirement Plans : Pension expense is the amount of annual contributions by the Company to the multi-employer contributory trusteed pension plan. Employee 401(k) and profit sharing plan expense is the amount of matching contributions. Supplemental retirement plan expense allocates the benefits over years of service. |
Earnings Per Common Share | Earnings Per Common Share : The two-class method is used in the calculation of basic and diluted earnings per share. Under the two-class method, earnings available to common stockholders for the period are allocated between common stockholders and participating securities (unvested share-based payment awards) according to dividends declared (or accumulated) and participation rights in undistributed earnings . |
Comprehensive Income (Loss) | Comprehensive Income (Loss) : Comprehensive income (loss) consists of net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) includes unrealized gains and losses on securities available for sale, which are also recognized as a separate component of equity. Reclassifications from accumulated other comprehensive income are conducted on a specific identification method. |
Loss Contingencies | Loss Contingencies : Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe there are any such matters that will have a material effect on the financial statements. See Note 23 – Contingent Liabilities. |
Restrictions On Cash | Restrictions on Cash : Cash on hand or on deposit with the Federal Reserve Bank (FRB) is required to meet regulatory reserve and clearing requirements. The reserve requirement at December 31, 2020 and December 31, 2019 was $0 and $5,164 , respectively. Cash on deposit with the FHLB includes $3,300 pledged as collateral for FHLB advances. |
Equity | Equity : Treasury stock is carried at cost. Shares sold out of treasury are valued based on the weighted average cost. The carrying value of preferred stock and common stock warrants is based on allocation of issuance proceeds, net of issuance costs, in proportion to their relative fair values. |
Dividend Restrictions | Dividend Restriction : Banking regulations require us to maintain certain capital levels and may limit the dividends paid by CFBank to the Holding Company or by the Holding Company to stockholders. The ability of the Holding Company to pay dividends on its common stock is dependent upon the amount of cash and liquidity available at the Holding Company level, as well as the receipt of dividends and other distributions from CFBank to the extent necessary to fund such dividends. The Holding Company is a legal entity that is separate and distinct from CFBank, which has no obligation to make any dividends or other funds available for the payment of dividends by the Holding Company. The Holding Company also is subject to various legal and regulatory policies and guidelines impacting the Holding Company’s ability to pay dividends on its stock. In addition, the Holding Company’s ability to pay dividends on its stock is conditioned upon the payment, on a current basis, of quarterly interest payments on the subordinated debentures underlying the Company’s trust preferred securities. Finally, under the terms of the Holding Company’s fixed-to-floating rate subordinated debt, the Holding Company’s ability to pay dividends on its stock is conditioned upon the Holding Company continuing to make required principal and interest payments, and not incurring an event of default, with respect to the subordinated debt . |
Fair Value Of Financial Instruments | Fair Value of Financial Instruments : Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in Note 6 – Fair Value. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect these estimates. |
Advertising And Marketing Expense | Advertising and Marketing Expense: Advertising costs are expensed as incurred and are recorded as advertising and marketing, a component of noninterest expense. Advertising and marketing expense also includes leads-based marketing for our residential mortgage lending business. |
Operating Segments | Operating Segments : While management monitors and analyzes the revenue streams of the Company’s various products and services, the operations and financial performance is evaluated on a Company ‑wide basis. Operating results are not reviewed by senior management to make resource allocation or performance decisions. Accordingly, all of the financial service operations are considered by management to be aggregated in one reportable operating segment. |
Reclassifications | Reclassifications: Some items in the prior year financial statements were reclassified to conform to the current presentation. Reclassifications had no effect on prior period net income or stockholders’ equity. |
Future Accounting Matters | Future Accounting Matters: In June 2016, the FASB issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . Once effective, ASU 2016-13 will significantly change current guidance for recognizing impairment of financial instruments. Current guidance requires an "incurred loss" methodology for recognizing credit losses that delays recognition until it is probable a loss has been incurred. ASU 2016-13 replaces the incurred loss impairment methodology with a new methodology that reflects expected credit losses over the lives of the loans and requires consideration of a broader range of information to inform credit loss estimates. The ASU requires an organization to estimate all expected credit losses for financial assets measured at amortized cost, including loans and held-to-maturity debt securities, based on historical experience, current conditions, and reasonable and supportable forecasts. Additional disclosures are required. ASU 2016-13 also amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. Under the new guidance, entities will determine whether all or a portion of the unrealized loss on an available-for-sale debt security is a credit loss. Any credit loss will be recognized as an allowance for credit losses on available-for-sale debt securities rather than as a direct reduction of the amortized cost basis of the investment, as is currently required. As a result, entities will recognize improvements to estimated credit losses on available-for-sale debt securities immediately in earnings rather than as interest income over time, as currently required. ASU 2016-13 eliminates the current accounting model for purchased credit impaired loans and debt securities. Instead, purchased financial assets with credit deterioration will be recorded gross of estimated credit losses as of the date of acquisition and the estimated credit losses amounts will be added to the allowance for credit losses. Thereafter, entities will account for additional impairment of such purchased assets using the models listed above. In October 2019, the FASB voted to extend the implementation of ASU No. 2016-13 for certain financial institutions including smaller reporting companies. As a result, ASU 2016-13 will be effective for the Company for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. While the Company generally expects that the implementation of ASU 2016-13 has the potential to increase its allowance for loan losses balance, the Company is continuing to evaluate the potential impact on the Company’s financial statements and disclosures. Management has been running and evaluating various scenarios. At this time, the estimated impact on the Company’s consolidated financial statements, including disclosures, cannot be reasonably determined. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting . These amendments provide temporary optional guidance to ease the potential burden in accounting for reference rate reform. The ASU provides optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. It is intended to help stakeholders during the global market-wide reference rate transition period. The guidance is effective for all entities as of March 12, 2020 through December 31, 2022. The Company is implementing a transition plan to identify and modify its loans and other financial instruments with attributes that are either directly or indirectly influenced by LIBOR. The Company is assessing ASU 2020-04 and its impact on the Company's transition away from LIBOR for its loan and other financial instruments. |
Securities (Tables)
Securities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Securities [Abstract] | |
Amortized Cost And Fair Value Of Available-For-Sale Securities Portfolio | Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31, 2020 Issued by U.S. government-sponsored entities and agencies: U.S. Treasury $ 8,517 $ 119 $ - $ 8,636 Mortgage-backed securities - residential 62 3 - 65 Total $ 8,579 $ 122 $ - $ 8,701 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31, 2019 Issued by U.S. government-sponsored entities and agencies: U.S. Treasury $ 7,986 $ 32 $ 1 $ 8,017 Mortgage-backed securities - residential 126 4 - 130 Collateralized mortgage obligations 27 - - 27 Total $ 8,139 $ 36 $ 1 $ 8,174 |
Securities Classified By Maturity Date | December 31, 2020 December 31, 2019 Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 5,011 $ 5,033 $ 5,001 $ 5,000 Due from one to five years 3,506 3,603 2,985 3,017 Mortgage-backed securities - residential 62 65 126 130 Collateralized mortgage obligations - - 27 27 Total $ 8,579 $ 8,701 $ 8,139 $ 8,174 |
Fair Value Of Securities Pledged | 2020 2019 Pledged as collateral for: FHLB advances $ 1,017 $ 3,074 Public deposits 3,060 2,015 Mortgage banking derivatives 3,016 1,500 Interest-rate swaps - 77 Total $ 7,093 $ 6,666 |
Securities With Unrealized Losses | December 31, 2019 Less than 12 Months 12 Months or More Total Description of Securities Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Issued by U.S. government-sponsored entities and agencies: U.S. Treasury (1) $ 499 $ - $ 2,501 $ 1 $ 3,000 $ 1 Total temporarily impaired $ 499 $ - $ 2,501 $ 1 $ 3,000 $ 1 (1) Unrealized loss is less than $1 resulting in rounding to zero |
Loans And Leases (Tables)
Loans And Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Loans And Leases [Abstract] | |
Recorded Investment In Loans By Portfolio Segment | December 31, 2020 December 31, 2019 Commercial (1) $ 338,286 $ 170,646 Real estate: Single-family residential 147,860 120,256 Multi-family residential 45,375 39,229 Commercial 277,028 247,543 Construction 80,426 67,652 Consumer: Home equity lines of credit 20,962 20,941 Other 2,429 4,174 Subtotal 912,366 670,441 Less: ALLL (17,022) (7,138) Loans and Leases, net $ 895,344 $ 663,303 (1) Includes $4,133 and $4,779 of commercial leases at December 31, 2020 and December 31, 2019, respectively . |
Activity In ALLL By Portfolio Segment | December 31, 2020 Real Estate Consumer Commercial Single-family Multi-family Commercial Construction Home Equity lines of credit Other Total Beginning balance $ 2,054 $ 948 $ 447 $ 2,604 $ 759 $ 265 $ 61 $ 7,138 Addition to (reduction in) provision for loan losses 2,005 745 20 6,580 1,495 15 55 10,915 Charge-offs (648) (425) - - - (21) - (1,094) Recoveries 15 31 - - - 17 - 63 Ending balance $ 3,426 $ 1,299 $ 467 $ 9,184 $ 2,254 $ 276 $ 116 $ 17,022 December 31, 2019 Real Estate Consumer Commercial Single-family Multi-family Commercial Construction Home Equity lines of credit Other Total Beginning balance $ 1,819 $ 1,061 $ 612 $ 2,274 $ 739 $ 410 $ 97 $ 7,012 Addition to (reduction in) provision for loan losses 235 (120) (165) 225 20 (195) - - Charge-offs - - - - - - (36) (36) Recoveries - 7 - 105 - 50 - 162 Ending balance $ 2,054 $ 948 $ 447 $ 2,604 $ 759 $ 265 $ 61 $ 7,138 |
Balance In ALLL And Recorded Investment In Loans By Portfolio Segment And Based On Impairment Method | The following table presents the balance in the ALLL and the recorded investment in loans and leases by portfolio segment and based on impairment method as of December 31, 2020: Real Estate Consumer Commercial Single- family Multi- family Commercial Construction Home Equity lines of credit Other Total ALLL: Ending allowance balance attributable to loans: Individually evaluated for impairment $ - $ - $ - $ 23 $ - $ - $ - $ 23 Collectively evaluated for impairment 3,426 1,299 467 9,161 2,254 276 116 16,999 Total ending allowance balance $ 3,426 $ 1,299 $ 467 $ 9,184 $ 2,254 $ 276 $ 116 $ 17,022 Loans: Individually evaluated for impairment $ 268 $ 104 $ - $ 2,718 $ - $ - $ - $ 3,090 Collectively evaluated for impairment 338,018 147,756 45,375 274,310 80,426 20,962 2,429 909,276 Total ending loan balance $ 338,286 $ 147,860 $ 45,375 $ 277,028 $ 80,426 $ 20,962 $ 2,429 $ 912,366 The following table presents the balance in the ALLL and the recorded investment in loans and leases by portfolio segment and based on impairment method as of December 31, 2019: Real Estate Consumer Commercial Single- family Multi- family Commercial Construction Home Equity lines of credit Other Total ALLL: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 1 $ 1 $ - $ 33 $ - $ - $ - $ 35 Collectively evaluated for impairment 2,053 947 447 2,571 759 265 61 7,103 Total ending allowance balance $ 2,054 $ 948 $ 447 $ 2,604 $ 759 $ 265 $ 61 $ 7,138 Loans: Individually evaluated for impairment 85 $ 107 $ - $ 4,420 $ - $ - $ - $ 4,612 Collectively evaluated for impairment 170,561 120,149 39,229 243,123 67,652 20,941 4,174 665,829 Total ending loan balance $ 170,646 $ 120,256 $ 39,229 $ 247,543 $ 67,652 $ 20,941 $ 4,174 $ 670,441 |
Individually Evaluated For Impairment By Class Of Loans | The following table presents loans individually evaluated for impairment by class of loans as of and for the year ended December 31, 2020. The unpaid principal balance is the contractual principal balance outstanding. The recorded investment is the unpaid principal balance adjusted for partial charge-offs, purchase premiums and discounts, deferred loan fees and costs. Cash payments of interest on these loans during the twelve months ended December 31, 2020 totaled $159 . Unpaid Principal Balance Recorded Investment ALLL Allocated Average Recorded Investment Interest Income Recognized With no related allowance recorded: Real estate: Commercial: Owner occupied $ - $ - $ - $ - $ - Total with no allowance recorded - - - - - With an allowance recorded: Commercial (1) 533 268 - 489 10 Real estate: Single-family residential (1) 104 104 - 106 4 Commercial: Non-owner occupied 2,718 2,718 23 2,728 150 Total with an allowance recorded 3,355 3,090 23 3,323 164 Total $ 3,355 $ 3,090 $ 23 $ 3,323 $ 164 (1) Allowance recorded is less than $1 resulting in rounding to zero The following table presents loans individually evaluated for impairment by class of loans as of and for the year ended December 31, 2019. The unpaid principal balance is the contractual principal balance outstanding. The recorded investment is the unpaid principal balance adjusted for partial charge-offs, purchase premiums and discounts, deferred loan fees and costs. Cash payments of interest on these loans during the twelve months ended December 31, 2019 totaled $168 . Unpaid Principal Balance Recorded Investment ALLL Allocated Average Recorded Investment Interest Income Recognized With no related allowance recorded: Real estate: Commercial: Owner occupied $ - $ - $ - $ 111 $ 6 Total with no allowance recorded - - - 111 6 With an allowance recorded: Commercial 85 85 1 92 - Real estate: Single-family residential 107 107 1 108 6 Commercial: Non-owner occupied 4,420 4,420 33 4,194 154 Total with an allowance recorded 4,612 4,612 35 4,394 160 Total $ 4,612 $ 4,612 $ 35 $ 4,505 $ 166 |
Recorded Investment In Nonaccrual Loans By Class Of Loans | 2020 2019 Loans past due over 90 days still on accrual $ - $ - Nonaccrual loans: Commercial 190 85 Real estate: Single-family residential 421 550 Commercial: Non-owner occupied - 1,689 Consumer: Home equity lines of credit: Originated for portfolio 12 36 Purchased for portfolio 72 79 Other consumer - - Total nonaccrual 695 2,439 Total nonperforming loans $ 695 $ 2,439 |
Aging Of Recorded Investment In Past Due Loans By Class Of Loans | The following table presents the aging of the recorded investment in past due loans and leases by class of loans as of December 31, 2020: 30 - 59 Days Past Due 60 - 89 Days Past Due Greater than 90 Days Past Due Total Past Due Loans Not Past Due Nonaccrual Loans Not > 90 days Past Due Commercial $ - $ - $ - $ - $ 338,286 $ 190 Real estate: Single-family residential 1,747 - 315 2,062 145,798 106 Multi-family residential - - - - 45,375 - Commercial: Non-owner occupied - 78 - 78 159,835 - Owner occupied - - - - 90,049 - Land - - - - 27,066 - Construction - - - - 80,426 - Consumer: Home equity lines of credit: Originated for portfolio - - - - 20,773 12 Purchased for portfolio - - 46 46 143 26 Other - - - - 2,429 - Total $ 1,747 $ 78 $ 361 $ 2,186 $ 910,180 $ 334 The following table presents the aging of the recorded investment in past due loans and leases by class of loans as of December 31, 2019: 30 - 59 Days Past Due 60 - 89 Days Past Due Greater than 90 Days Past Due Total Past Due Loans Not Past Due Nonaccrual Loans Not > 90 days Past Due Commercial $ - $ 71 $ - $ 71 $ 170,575 $ 85 Real estate: Single-family residential 2,453 261 426 3,140 117,116 124 Multi-family residential - - - - 39,229 - Commercial: Non-owner occupied - - 1,689 1,689 138,762 - Owner occupied - - - - 81,871 - Land - - - - 25,221 - Construction 304 - - 304 67,348 - Consumer: Home equity lines of credit: Originated for portfolio - - 22 22 20,713 14 Purchased for portfolio - - - - 206 79 Other - - - - 4,174 - Total $ 2,757 $ 332 $ 2,137 $ 5,226 $ 665,215 $ 302 |
Nonaccrual Loans As Troubled Debt Restructuring | 2020 2019 Commercial $ 190 $ 85 Total $ 190 $ 85 |
Recorded Investment In Loans By Risk Category And Class Of Loans | The recorded investment in loans and leases by risk category and by class of loans as of December 31, 2020 and based on the most recent analysis performed follows. Not Rated Pass Special Mention Substandard Doubtful Total Commercial $ 1 $ 337,110 $ 664 $ 321 $ 190 $ 338,286 Real estate: Single-family residential 147,439 - - 421 - 147,860 Multi-family residential - 45,249 - 126 - 45,375 Commercial: Non-owner occupied 57 150,084 7,054 2,718 - 159,913 Owner occupied - 87,636 1,537 876 - 90,049 Land - 27,066 - - - 27,066 Construction - 80,247 179 - - 80,426 Consumer: Home equity lines of credit: Originated for portfolio 20,746 - - 27 - 20,773 Purchased for portfolio 118 - - 71 - 189 Other 2,429 - - - - 2,429 $ 170,790 $ 727,392 $ 9,434 $ 4,560 $ 190 $ 912,366 The recorded investment in loans and leases by risk category and class of loans as of December 31, 2019 follows. There were no loans rated doubtful at December 31, 2019. Not Rated Pass Special Mention Substandard Total Commercial $ - $ 168,617 $ 1,424 $ 605 $ 170,646 Real estate: Single-family residential 119,707 - - 549 120,256 Multi-family residential - 39,081 - 148 39,229 Commercial: Non-owner occupied 67 134,466 1,498 4,420 140,451 Owner occupied - 79,773 2,098 - 81,871 Land - 25,221 - - 25,221 Construction 1,855 65,797 - - 67,652 Consumer: Home equity lines of credit: Originated for portfolio 20,681 - - 54 20,735 Purchased for portfolio 127 - - 79 206 Other 4,174 - - - 4,174 $ 146,611 $ 512,955 $ 5,020 $ 5,855 $ 670,441 |
Components Of Net Investment In Direct Financing Leases | December 31, 2020 December 31, 2019 Total minimum lease payments to be received $ 4,459 $ 5,252 Less: unearned income (326) (473) Net investment in direct financing leases $ 4,133 $ 4,779 (1) There were no initial direct costs associated with these leases |
Summary Of Future Minimum Lease Payments Receivable | 2021 793 2022 793 2023 1,563 2024 1,310 $ 4,459 |
Foreclosed Assets (Tables)
Foreclosed Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Foreclosed Assets [Abstract] | |
Expenses Related To Foreclosed Assets | 2020 2019 Net loss (gain) on sales $ - $ (12) Operating expenses, net of rental income - 3 $ - $ (9) |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value [Abstract] | |
Assets And Liabilities Measured At Fair Value On A Recurring Basis, Including Financial Assets And Liabilities | Fair Value Measurements at December 31, 2020 Using Significant Other Observable Inputs (Level 2) Financial Assets: Securities available for sale: Issued by U.S. government-sponsored entities and agencies: U.S. Treasury $ 8,636 Mortgage-backed securities - residential 65 Total securities available for sale $ 8,701 Loans held for sale $ 283,165 Yield maintenance provisions (embedded derivatives) $ 1,944 Interest rate lock commitments $ 18,101 Financial Liabilities: Interest-rate swaps $ 1,944 TBA mortgage-backed securities $ 2,690 Fair Value Measurements at December 31, 2019 Using Significant Other Observable Inputs (Level 2) Financial Assets: Securities available for sale: Issued by U.S. government-sponsored entities and agencies: U.S. Treasury $ 8,017 Mortgage-backed securities - residential 130 Collateralized mortgage obligations 27 Total securities available for sale $ 8,174 Loans held for sale $ 135,711 Yield maintenance provisions (embedded derivatives) $ 12 Interest rate lock commitments $ 3,104 Financial Liabilities: Interest-rate swaps $ 12 TBA mortgage-backed securities $ 350 |
Assets Measured At Fair Value On A Non-Recurring Basis | Fair Value Measurements at December 31, 2020 Using Significant Unobservable Inputs (Level 3) Impaired loans: Commercial $ 190 Total impaired loans $ 190 Fair Value Measurements at December 31, 2019 Using Significant Unobservable Inputs (Level 3) Impaired loans: Commercial $ 84 Real Estate: Single-family residential 106 Commercial: Non-owner occupied 4,387 Total impaired loans $ 4,577 |
Financial Instruments Measured At Fair Value On A Non-Recurring Basis | The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at December 31, 2020: Fair Value Valuation Technique(s) Unobservable Inputs (Range) Weighted Average Impaired loans: Commercial $ 190 Comparable sales approach Adjustment for differences between the stated value and net realizable value 65.00% The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at December 31, 2019: Fair Value Valuation Technique(s) Unobservable Inputs (Range) Weighted Average Impaired loans: Commercial $ 84 Comparable sales approach Adjustment for differences between the comparable market transactions 2.06% Real estate: Single -family residential 106 Comparable sales approach Adjustment for differences between the comparable market transactions 3.61% Commercial: Non-owner occupied 4,387 Comparable sales approach Adjustment for differences between the comparable market transactions ( -2.58% , 14.00% ) 2.44% |
Aggregate Fair Value, Contractual Balance And Gain Or Loss | December 31, 2020 December 31, 2019 Aggregate fair value $ 283,165 $ 135,711 Contractual balance 274,401 133,993 Gain 8,764 1,718 |
Total Amount Of Gains And Losses From Changes In Fair Value Included In Earnings | 2020 2019 Interest income $ 6,231 $ 2,153 Interest expense - - Change in fair value 7,046 1,341 Total change in fair value $ 13,277 $ 3,494 |
Carrying Amounts And Estimated Fair Values Of Financial Instruments | The carrying amounts and estimated fair values of financial instruments at year-end were as follows: Fair Value Measurements at December 31, 2020 Using: Carrying Value Level 1 Level 2 Level 3 Total Financial assets Cash and cash equivalents $ 221,594 $ 221,594 $ - $ - $ 221,594 Interest-bearing deposits in other financial institutions 100 100 - - 100 Securities available for sale 8,701 - 8,701 - 8,701 Equity securities 5,000 - - 5,000 5,000 Loans held for sale 283,165 - 283,165 - 283,165 Loans and leases, net 895,344 - - 905,030 905,030 FHLB and FRB stock 5,847 n/a n/a n/a n/a Accrued interest receivable 4,584 1 36 4,547 4,584 Yield maintenance provisions (embedded derivatives) 1,944 - 1,944 - 1,944 Interest rate lock commitments 18,101 - 18,101 - 18,101 Financial liabilities Deposits $ (1,113,070) $ (554,650) $ (565,089) $ - $ (1,119,739) FHLB advances and other debt (214,426) - (215,531) - (215,531) Advances by borrowers for taxes and insurance (1,029) - - (1,029) (1,029) Subordinated debentures (14,844) - (16,325) - (16,325) Accrued interest payable (498) - (498) - (498) Interest-rate swaps (1,944) - (1,944) - (1,944) TBA mortgage-backed securities (2,690) - (2,690) - (2,690) The carrying amounts and estimated fair values of financial instruments at December 31, 2019 were as follows: Fair Value Measurements at December 31, 2019 Using: Carrying Value Level 1 Level 2 Level 3 Total Financial assets Cash and cash equivalents $ 45,879 $ 45,879 $ - $ - $ 45,879 Interest-bearing deposits in other financial institutions 100 100 - - 100 Securities available for sale 8,174 - 8,174 - 8,174 Loans held for sale 135,711 - 135,711 - 135,711 Loans and leases, net 663,303 - - 664,152 664,152 FHLB stock 4,008 n/a n/a n/a n/a Accrued interest receivable 2,749 25 40 2,684 2,749 Yield maintenance provisions (embedded derivatives) 12 - 12 - 12 Interest rate lock commitments 3,104 - 3,104 - 3,104 Financial liabilities Deposits $ (746,323) $ (382,173) $ (367,375) $ - $ (749,548) FHLB advances and other debt (29,017) - (29,669) - (29,669) Advances by borrowers for taxes and insurance (929) - - (929) (929) Subordinated debentures (14,806) - (15,940) - (15,940) Accrued interest payable (208) - (208) - (208) Interest-rate swaps (12) - (12) - (12) TBA mortgage-backed securities (350) - (350) - (350) |
Loan Servicing (Tables)
Loan Servicing (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Loan Servicing [Abstract] | |
Principal Balances Of Mortgage Loans At Year-End | December 31, 2020 December 31, 2019 Mortgage loans serviced for Freddie Mac $ 1,875 $ 2,649 |
Premises And Equipment And Op_2
Premises And Equipment And Operating Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Premises And Equipment And Operating Leases [Abstract] | |
Year-End Premises And Equipment | December 31, 2020 December 31, 2019 Land and land improvements $ 1,293 $ 1,293 Buildings 4,140 4,294 Furniture, fixtures and equipment 2,971 2,729 8,404 8,316 Less: accumulated depreciation (4,674) (4,325) $ 3,730 $ 3,991 |
Future Minimum Operating Lease Payments | 2021 $ 548 2022 536 2023 377 2024 250 Thereafter - Total future minimum rental commitments 1,711 Less - amounts representing interest (179) Total operating lease liabilities $ 1,532 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Deposits [Abstract] | |
Scheduled Maturities Of Time Deposits | 2021 $ 358,512 2022 143,458 2023 36,680 2024 19,671 2025 99 Thereafter - Total $ 558,420 |
FHLB Advances And Other Debt (T
FHLB Advances And Other Debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
FHLB Advances And Other Debt [Abstract] | |
Schedule Of FHLB Advances And Other Debt | Weighted Average Rate December 31, 2020 December 31, 2019 FHLB fixed rate advances Maturities: 2020 - 4,500 2021 1.63% 7,500 4,000 2022 1.16% 10,000 1,500 2023 0.92% 3,500 6,500 2024 1.90% 6,500 - Total FHLB fixed rate advances 27,500 16,500 Fixed rate other debt: FRB PPPLF advances 0.35% 107,413 - Variable rate other debt: Holding Company credit facility 4.00% 9,500 5,000 Warehouse facility 3.50% 70,013 7,517 Total variable rate other debt 79,513 12,517 Total $ 214,426 $ 29,017 |
Schedule Of Federal Home Loan Advances Pledged By Assets | December 31, 2020 December 31, 2019 Single-family mortgage loans $ 87,076 $ 79,144 Multi-family mortgage loans 10,970 21,258 Commercial real estate loans (1-4 family) 5,750 6,639 Home equity lines of credit 2,838 5,028 Securities 1,017 3,074 Cash 3,300 3,300 Total $ 110,951 $ 118,443 |
FHLB Advances And Other Debt Outstanding Maturity Period | Payments due on FHLB advances and other debt over the next five years are as follows: December 31, 2020 2021 $ 78,013 2022 126,413 2023 3,500 2024 6,500 2025 - $ 214,426 |
Assets Pledged As Collateral With FRB | 2020 2019 Commercial loans $ 39,914 $ 38,317 Commercial real estate loans 85,655 77,733 $ 125,569 $ 116,050 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Taxes [Abstract] | |
Income Tax Expense | December 31, 2020 December 31, 2019 Current federal $ 9,720 $ 2,627 Deferred federal (1) (3,045) (187) Total $ 6,675 $ 2,440 (1) Includes tax benefit of operating loss carryforwards of $34 and $34 for the years ended December 31, 2020 and 2019, respectively. |
Effective Tax Rates Differ From Federal Statutory Rate | December 31, 2020 December 31, 2019 Federal statutory rate times financial statement income $ 7,619 $ 2,529 Effect of: Stock compensation (19) (18) Bank owned life insurance income (30) (30) Historic tax credits (807) - Low income housing tax credits (106) (59) Other 18 18 $ 6,675 $ 2,440 Effective tax rate 18% 20% |
Deferred Tax Assets And Liabilities | 2020 2019 Deferred tax assets: Allowance for loan and lease losses $ 3,407 $ 1,170 Compensation related issues 1,815 433 Deferred loan fees 293 - Nonaccrual interest 57 55 Net operating loss carry forward 398 432 Operating lease liabilities 322 412 6,292 2,502 Deferred tax liabilities: FHLB stock dividend 226 226 Deferred loan costs - 7 Depreciation 15 73 Operating lease right-of-use assets 291 374 Unrealized mark-to-market gain 935 32 Other 2 4 Prepaid expenses 76 65 1,545 781 Net deferred tax asset $ 4,747 $ 1,721 |
Related-Party Transactions (Tab
Related-Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Related-Party Transactions [Abstract] | |
Loans To Principal Officers, Directors And Affiliates | Year ended December 31, 2020 2019 Beginning balance $ 6,113 $ 3,672 New loans 4,193 3,062 Repayments (29) (621) Ending balance $ 10,277 $ 6,113 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Stock-Based Compensation [Abstract] | |
Summary Of Stock Option Activity | Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Intrinsic Value Outstanding at beginning of year 95,438 $ 7.64 Exercised (4,545) 7.98 Expired (437) 17.33 Cancelled or forfeited (14) 17.33 Outstanding at end of period 90,442 $ 7.57 2.4 $ 915 Exercisable at end of period 90,442 $ 7.57 2.4 $ 915 |
Summary Of Changes In Company's Nonvested Restricted Shares | Nonvested Shares Shares Weighted Average Grant-Date Fair Value Nonvested at January 1, 2020 102,916 $ 13.11 Granted 19,660 10.02 Vested (55,877) 13.18 Forfeited (6,897) 12.35 Nonvested at December 31, 2020 59,802 $ 12.12 |
Regulatory Capital Matters (Tab
Regulatory Capital Matters (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Regulatory Capital Matters [Abstract] | |
Actual And Required Capital Amounts And Ratios Of CFBank | Actual Minimum Capital Required-Basel III Fully Phased-In To Be Well Capitalized Under Applicable Regulatory Capital Standards Amount Ratio Amount Ratio Amount Ratio December 31, 2020 Total Capital to risk weighted assets $ 136,683 14.31% $ 100,298 10.50% $ 95,522 10.00% Tier 1 (Core) Capital to risk weighted assets 124,678 13.05% 81,194 8.50% 76,418 8.00% Common equity tier 1 capital to risk-weighted assets 124,678 13.05% 66,866 7.00% 62,089 6.50% Tier 1 (Core) Capital to adjusted total assets (Leverage ratio) 124,678 9.74% 51,187 4.00% 63,984 5.00% Actual Minimum Capital Required-Basel III Fully Phased-In To Be Well Capitalized Under Applicable Regulatory Capital Standards Amount Ratio Amount Ratio Amount Ratio December 31, 2019 Total Capital to risk weighted assets $ 95,164 12.96% $ 77,097 10.50% $ 73,425 10.00% Tier 1 (Core) Capital to risk weighted assets 87,857 11.97% 62,412 8.50% 58,740 8.00% Common equity tier 1 capital to risk-weighted assets 87,857 11.97% 51,398 7.00% 47,726 6.50% Tier 1 (Core) Capital to adjusted total assets (Leverage ratio) 87,857 10.58% 33,221 4.00% 41,526 5.00% |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments [Abstract] | |
Summary Of Derivative Instruments | 2020 2019 Notional amount $ 46,474 $ 12,039 Weighted average pay rate on interest-rate swaps 4.19% 4.66% Weighted average receive rate on interest-rate swaps 3.08% 4.63% Weighted average maturity (years) 7.4 7.3 Fair value of interest-rate swaps $ (1,944) $ (12) Fair value of yield maintenance provisions $ 1,944 $ 12 |
Schedule Of Mortgage Banking Derivatives | December 31, 2020 December 31, 2019 Notional Amount Fair Value Notional Amount Fair Value Assets (Liabilities): Interest rate commitments $ 1,048,613 $ 18,100 $ 297,454 $ 3,104 TBA mortgage-back securities 506,750 (2,690) 225,500 (350) |
Schedule Of Notional Amount Of Loans Sold | 2020 2019 Notional amount of loans sold $ 2,229,042 $ 411,257 |
Schedule Of Revenue Recognized On Mortgage Activities | December 31, 2020 December 31, 2019 Gain on loans sold 61,146 9,603 Gain (loss) from change in fair value of loans held-for-sale 7,046 1,341 Gain (loss) from change in fair value of derivatives (9,895) (490) $ 58,297 $ 10,454 |
Loan Commitments And Other Re_2
Loan Commitments And Other Related Activities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Loan Commitments And Other Related Activities [Abstract] | |
Contractual Amounts Of Financial Instruments With Off-Balance-Sheet Risk | 2020 2019 Fixed Rate Variable Rate Fixed Rate Variable Rate Commitments to make loans $ 1,072,963 $ 31,239 $ 314,705 $ 43,979 Unused lines of credit $ 20,395 $ 65,788 $ 10,678 $ 55,684 Standby letters of credit $ 3,997 $ - $ 1,415 $ - |
Parent Company Only Condensed_2
Parent Company Only Condensed Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Parent Company Only Condensed Financial Information [Abstract] | |
Condensed Balance Sheets | 2020 2019 Assets Cash and cash equivalents $ 1,785 $ 10,037 Equity securities 5,000 - Investment in banking subsidiary 125,172 88,317 Investment in and advances to other subsidiary 241 238 Other assets 2,533 2,045 Total assets $ 134,731 $ 100,637 Liabilities and Equity Subordinated debentures $ 14,844 $ 14,806 Other borrowings 9,500 5,000 Accrued expenses and other liabilities 177 167 Stockholders' equity 110,210 80,664 Total liabilities and stockholders' equity $ 134,731 $ 100,637 |
Condensed Statements Of Operations | 2020 2019 Interest income $ - $ - Other income 178 70 Interest expense 1,209 1,353 Other expense 830 758 Loss before income tax and before undistributed subsidiary income (1,861) (2,041) Tax effect 390 427 Loss after income tax and before undistributed subsidiary income (1,471) (1,614) Equity in undistributed subsidiary income 31,079 11,215 Net income $ 29,608 $ 9,601 Comprehensive income $ 29,676 $ 9,702 |
Condensed Statements Of Cash Flows | 2020 2019 Cash flows from operating activities Net Income $ 29,608 $ 9,601 Adjustments: Effect of subsidiaries' operations (31,079) (11,215) Amortization, net 38 39 Change in other assets and other liabilities (480) (939) Net cash used by operating activities (1,913) (2,514) Cash flows from investing activities Investments in banking subsidiary (5,000) (14,000) Purchase of equity securities (5,000) - Net cash used by investing activities (10,000) (14,000) Cash flows from financing activities Proceeds from other borrowings 15,000 4,000 Repayments of other borrowings (10,500) (5,000) Net proceeds from the issuance of preferred stock private placement - 14,000 Net proceeds from the issuance of common stock private placement - 9,641 Proceeds from exercise of stock options 36 - Acquisition of treasury shares surrendered upon vesting of restricted stock for payment of taxes (32) (23) Purchase of treasury shares (648) - Exercise of warrants to common stock - 1,258 Dividends paid (195) - Net cash from financing activities 3,661 23,876 Net change in cash and cash equivalents (8,252) 7,362 Beginning cash and cash equivalents 10,037 2,675 Ending cash and cash equivalents $ 1,785 $ 10,037 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Common Share [Abstract] | |
Computation Of Earnings Per Share | December 31, 2020 December 31, 2019 Basic Net income $ 29,608 $ 9,601 Accretion of discount and value of warrants exercised related to Series B preferred stock (1) - 219 Earnings allocated to participating securities (Series C preferred stock) (2) (2,280) (430) Net income allocated to common stockholders $ 27,328 $ 9,390 Weighted average common shares outstanding including unvested share-based payment awards 6,072,829 4,582,997 Less: Unvested share-based payment awards-2019 Plan (43,732) (1,532) Average shares 6,029,097 4,581,465 Basic earnings per common share $ 4.53 $ 2.05 Diluted Net earnings allocated to common stockholders $ 27,328 $ 9,390 Add back: Preferred Dividends on Series B stock and accretion of discount - - Net earnings allocated to common stockholders $ 27,328 $ 9,390 Weighted average common shares outstanding for basic earnings per common share 6,029,097 4,581,465 Add: Dilutive effects of assumed exercises of stock options 34,158 38,620 Add: Dilutive effects of assumed exercises of stock warrants - 6,947 Add: Dilutive effects of unvested share-based payment awards-2019 Plan 43,732 1,532 Average shares and dilutive potential common shares 6,106,987 4,628,564 Diluted earnings per common share $ 4.47 $ 2.03 (1) All outstanding warrants expired on July 15, 2019. (2) All 12,607 outstanding shares of Series C preferred stock were converted into a total of 1,260,700 shares of the Company’s Non-Voting Common Stock effective as of the close of business on May 28, 2020. |
Summary Of Anti-Dilutive Options Or Warrants | 2020 2019 Stock options 331 463 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accumulated Other Comprehensive Income [Abstract] | |
Schedule Of Accumulated Other Comprehensive Income | Changes in Accumulated Other Comprehensive Income by Component For the Year Ended December 31, 2020 and 2019 (1) Unrealized Gains and Losses on Available-for-Sale Securities 2020 2019 Accumulated other comprehensive gain/(loss), beginning of period $ 28 $ (73) Other comprehensive gain before reclassifications 68 101 Less amount reclassified from accumulated other comprehensive loss (2) - - Net current-period other comprehensive income 68 101 Accumulated other comprehensive income, end of period $ 96 $ 28 (1) All amounts are net of tax. Amounts in parentheses indicate a reduction of other comprehensive income. (2) There were no amounts reclassified out of other comprehensive income for years ended December 31, 2020 and December 31, 2019. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Narrative) (Details) $ in Thousands | Dec. 31, 2020USD ($)store | Dec. 31, 2019USD ($) | Dec. 31, 2020USD ($)store | Dec. 31, 2019USD ($) |
Significant Accounting Policies [Line Items] | ||||
Number of full-service banking offices | store | 6 | 6 | ||
Cash exceeded federally insured limits | $ 215,700 | $ 215,700 | ||
Cash held, not federally insured | 203,000 | 203,000 | ||
Interest-bearing deposits in other financial institutions | 100 | $ 100 | 100 | $ 100 |
Balance outstanding in joint ventures | 1,406 | 1,000 | 1,406 | 1,000 |
Income recognized on joint ventures | $ 173 | 57 | ||
Tax benefit greater than being realized on examination | 50.00% | |||
FRB regulatory reserve requirement | 0 | 5,164 | $ 0 | 5,164 |
Collateral pledged for advances | 110,951 | 118,443 | 110,951 | 118,443 |
Investment | 0 | 894 | ||
Maximum exposure to loss related to investments | 0 | |||
Cash [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Collateral pledged for advances | $ 3,300 | 3,300 | $ 3,300 | 3,300 |
Minimum [Member] | Buildings And Related Components [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Estimated useful life | 3 years | |||
Minimum [Member] | Furniture, fixtures and equipment [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Estimated useful life | 2 years | |||
Maximum [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Home equity lines of credit combined with the balance of the prior mortgage liens | 89.90% | 89.90% | ||
Maturity of cash, deposits with other financial institutions | 90 days | |||
Maximum [Member] | Buildings And Related Components [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Estimated useful life | 40 years | |||
Maximum [Member] | Furniture, fixtures and equipment [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Estimated useful life | 25 years | |||
Single-Family Residential [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Collateral pledged for advances | $ 87,076 | 79,144 | $ 87,076 | 79,144 |
Single-Family Residential [Member] | Maximum [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Lending amount up to the percentage of collateral | 80.00% | 80.00% | ||
Multi-Family Residential [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Collateral pledged for advances | $ 10,970 | 21,258 | $ 10,970 | 21,258 |
Multi-Family Residential [Member] | Minimum [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Fixed rates loans limit, period | 3 years | |||
Multi-Family Residential [Member] | Maximum [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Lending amount up to the percentage of collateral | 85.00% | 85.00% | ||
Fixed rates loans limit, period | 5 years | |||
Real Estate Commercial [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Collateral pledged for advances | $ 5,750 | $ 6,639 | $ 5,750 | $ 6,639 |
Real Estate Commercial [Member] | Minimum [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Fixed rates loans limit, period | 3 years | |||
Real Estate Commercial [Member] | Maximum [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Lending amount up to the percentage of collateral | 85.00% | 85.00% | ||
Fixed rates loans limit, period | 5 years | |||
Construction [Member] | Maximum [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Lending amount up to the percentage of collateral | 80.00% | 80.00% | ||
Maturity of construction loans convert to permanent loans | 30 years |
Securities (Narrative) (Details
Securities (Narrative) (Details) | 12 Months Ended | |
Dec. 31, 2020USD ($)security | Dec. 31, 2019USD ($)security | |
Schedule of Available-for-sale Securities [Line Items] | ||
Other-than-temporary impairment | $ 0 | $ 0 |
Sales of securities | $ 0 | $ 0 |
Holdings of securities greater than 10% of stockholders' equity | security | 0 | 0 |
Securities with unrealized losses | security | 0 | |
Equity securities | $ 5,000,000 | |
U.S. Government-Sponsored Entities And Agencies [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Minimum percentage of securities held | 10.00% | 10.00% |
Securities (Amortized Cost And
Securities (Amortized Cost And Fair Value Of Available-For-Sale Securities Portfolio) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 8,579 | $ 8,139 |
Gross Unrealized Gains | 122 | 36 |
Gross Unrealized Losses | 1 | |
Available-for-sale Securities Total, Fair Value | 8,701 | 8,174 |
U.S. Treasury [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 8,517 | 7,986 |
Gross Unrealized Gains | 119 | 32 |
Gross Unrealized Losses | 1 | |
Available-for-sale Securities Total, Fair Value | 8,636 | 8,017 |
Mortgage-Backed Securities - Residential [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 62 | 126 |
Gross Unrealized Gains | 3 | 4 |
Gross Unrealized Losses | ||
Available-for-sale Securities Total, Fair Value | $ 65 | 130 |
Collateralized Mortgage Obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 27 | |
Available-for-sale Securities Total, Fair Value | $ 27 |
Securities (Securities Classifi
Securities (Securities Classified By Maturity Date) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule Of Available For Sale Securities [Line Items] | ||
Due in one year or less, Amortized Cost | $ 5,011 | $ 5,001 |
Due from one to five years, Amortized Cost | 3,506 | 2,985 |
Amortized Cost | 8,579 | 8,139 |
Due in one year or less, Fair Value | 5,033 | 5,000 |
Due from one to five years, Fair Value | 3,603 | 3,017 |
Available-for-sale Securities Total, Fair Value | 8,701 | 8,174 |
Mortgage-Backed Securities - Residential [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 62 | 126 |
Available-for-sale Securities Total, Fair Value | $ 65 | 130 |
Collateralized Mortgage Obligations [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 27 | |
Available-for-sale Securities Total, Fair Value | $ 27 |
Securities (Fair Value Of Secur
Securities (Fair Value Of Securities Pledged) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Pledged as collateral for: | ||
FHLB advances | $ 1,017 | $ 3,074 |
Public deposits | 3,060 | 2,015 |
Mortgage banking derivatives | 3,016 | 1,500 |
Interest-rate swaps | 77 | |
Total | $ 7,093 | $ 6,666 |
Securities (Securities With Unr
Securities (Securities With Unrealized Losses) (Details) $ in Thousands | Dec. 31, 2019USD ($) | |
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 Months, Fair Value | $ 499 | |
12 Months or More, Fair Value | 2,501 | |
12 Months or More, Unrealized Loss | 1 | |
Total, Fair Value | 3,000 | |
Total, Unrealized Loss | 1 | |
U.S. Treasury [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 Months, Fair Value | 499 | [1] |
12 Months or More, Fair Value | 2,501 | [1] |
12 Months or More, Unrealized Loss | 1 | [1] |
Total, Fair Value | 3,000 | [1] |
Total, Unrealized Loss | 1 | [1] |
Maximum [Member] | U.S. Treasury [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total, Unrealized Loss | $ 1 | |
[1] | Unrealized loss is less than $1 resulting in rounding to zero |
Loans And Leases (Narrative) (D
Loans And Leases (Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2020USD ($)loan | Dec. 31, 2019USD ($)loan | ||
Accounts Notes And Loans Receivable [Line Items] | |||
Loans | $ 895,344,000 | $ 663,303,000 | |
Loans 90 days or more past due and still accruing interest | |||
Total TDR's | 3,090,000 | 2,923,000 | |
Allocated specific reserves to modified TDRs | $ 23,000 | $ 22,000 | |
Number of TDRs in payment default | loan | 0 | 0 | |
Loans rated doubtful | loan | 0 | ||
Cash payments of interest | $ 159,000 | $ 168,000 | |
Loans | 912,366,000 | 670,441,000 | |
Deferral loans outstanding balance | $ 528,000 | ||
Northpointe [Member] | Mortgage Purchase Program [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Average days | 14 days | ||
Percent of loans risk rated for capital adequacy | 100.00% | ||
Percent of participation agreement interest | 95.00% | ||
Ownership interest in each loan is participates | 5.00% | ||
Nonaccrual [Member] | Commitments To Lend Additional Amounts [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total TDR's | $ 0 | 0 | |
Single-Family Residential [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Loans | 147,860,000 | 120,256,000 | |
Single-Family Residential [Member] | Northpointe [Member] | Mortgage Purchase Program [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Loans | 15,713,000 | $ 26,046,000 | |
Commercial Real Estate [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total TDR's | $ 190,000 | ||
Number of loans modified as a TDR | loan | 1 | 0 | |
TDR's charge-offs | $ 264,000 | $ 0 | |
Loans | [1] | 338,286,000 | 170,646,000 |
Accruing [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total TDR's | 2,900,000 | $ 2,838,000 | |
Commercial Loans - Paycheck Protection Program [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Loans | $ 105,269,000 | ||
Maturity term | 2 years | ||
Stated interest rate | 1.00% | ||
[1] | Includes $4,133 and $4,779 of commercial leases at December 31, 2020 and December 31, 2019, respectively. |
Loans And Leases (Recorded Inve
Loans And Leases (Recorded Investment In Loans By Portfolio Segment) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accounts Notes And Loans Receivable [Line Items] | ||||
Subtotal | $ 912,366 | $ 670,441 | ||
Less: ALLL | (17,022) | (7,138) | $ (7,012) | |
Loans and Leases, net | 895,344 | 663,303 | ||
Commercial Real Estate [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Subtotal | [1] | 338,286 | 170,646 | |
Less: ALLL | (3,426) | (2,054) | (1,819) | |
Single-Family Residential [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Subtotal | 147,860 | 120,256 | ||
Less: ALLL | (1,299) | (948) | (1,061) | |
Multi-Family Residential [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Subtotal | 45,375 | 39,229 | ||
Less: ALLL | (467) | (447) | (612) | |
Real Estate Commercial [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Subtotal | 277,028 | 247,543 | ||
Less: ALLL | (9,184) | (2,604) | (2,274) | |
Construction [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Subtotal | 80,426 | 67,652 | ||
Less: ALLL | (2,254) | (759) | (739) | |
Home Equity Line Of Credit [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Subtotal | 20,962 | 20,941 | ||
Less: ALLL | (276) | (265) | (410) | |
Other Consumer [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Subtotal | 2,429 | 4,174 | ||
Less: ALLL | (116) | (61) | $ (97) | |
Commercial Leases [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Subtotal | $ 4,133 | $ 4,779 | ||
[1] | Includes $4,133 and $4,779 of commercial leases at December 31, 2020 and December 31, 2019, respectively. |
Loans And Leases (Activity In A
Loans And Leases (Activity In ALLL By Portfolio Segment) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning balance | $ 7,138 | $ 7,012 |
Addition to (reduction in) provision for loan losses | 10,915 | |
Charge-offs | (1,094) | (36) |
Recoveries | 63 | 162 |
Ending balance | 17,022 | 7,138 |
Commercial Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning balance | 2,054 | 1,819 |
Addition to (reduction in) provision for loan losses | 2,005 | 235 |
Charge-offs | (648) | |
Recoveries | 15 | |
Ending balance | 3,426 | 2,054 |
Single-Family Residential [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning balance | 948 | 1,061 |
Addition to (reduction in) provision for loan losses | 745 | (120) |
Charge-offs | (425) | |
Recoveries | 31 | 7 |
Ending balance | 1,299 | 948 |
Multi-Family Residential [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning balance | 447 | 612 |
Addition to (reduction in) provision for loan losses | 20 | (165) |
Charge-offs | ||
Recoveries | ||
Ending balance | 467 | 447 |
Real Estate Commercial [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning balance | 2,604 | 2,274 |
Addition to (reduction in) provision for loan losses | 6,580 | 225 |
Charge-offs | ||
Recoveries | 105 | |
Ending balance | 9,184 | 2,604 |
Construction [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning balance | 759 | 739 |
Addition to (reduction in) provision for loan losses | 1,495 | 20 |
Charge-offs | ||
Recoveries | ||
Ending balance | 2,254 | 759 |
Home Equity Line Of Credit [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning balance | 265 | 410 |
Addition to (reduction in) provision for loan losses | 15 | (195) |
Charge-offs | (21) | |
Recoveries | 17 | 50 |
Ending balance | 276 | 265 |
Other Consumer [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning balance | 61 | 97 |
Addition to (reduction in) provision for loan losses | 55 | |
Charge-offs | (36) | |
Recoveries | ||
Ending balance | $ 116 | $ 61 |
Loans And Leases (Balance In AL
Loans And Leases (Balance In ALLL And Recorded Investment In Loans By Portfolio Segment And Based On Impairment Method) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated for impairment | $ 23 | $ 35 | ||
Collectively evaluated for impairment | 16,999 | 7,103 | ||
Total ending allowance balance | 17,022 | 7,138 | $ 7,012 | |
Individually evaluated for impairment | 3,090 | 4,612 | ||
Collectively evaluated for impairment | 909,276 | 665,829 | ||
Total ending loan balance | 912,366 | 670,441 | ||
Commercial Real Estate [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated for impairment | 1 | |||
Collectively evaluated for impairment | 3,426 | 2,053 | ||
Total ending allowance balance | 3,426 | 2,054 | 1,819 | |
Individually evaluated for impairment | 268 | 85 | ||
Collectively evaluated for impairment | 338,018 | 170,561 | ||
Total ending loan balance | [1] | 338,286 | 170,646 | |
Single-Family Residential [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated for impairment | 1 | |||
Collectively evaluated for impairment | 1,299 | 947 | ||
Total ending allowance balance | 1,299 | 948 | 1,061 | |
Individually evaluated for impairment | 104 | 107 | ||
Collectively evaluated for impairment | 147,756 | 120,149 | ||
Total ending loan balance | 147,860 | 120,256 | ||
Multi-Family Residential [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Collectively evaluated for impairment | 467 | 447 | ||
Total ending allowance balance | 467 | 447 | 612 | |
Collectively evaluated for impairment | 45,375 | 39,229 | ||
Total ending loan balance | 45,375 | 39,229 | ||
Real Estate Commercial [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated for impairment | 23 | 33 | ||
Collectively evaluated for impairment | 9,161 | 2,571 | ||
Total ending allowance balance | 9,184 | 2,604 | 2,274 | |
Individually evaluated for impairment | 2,718 | 4,420 | ||
Collectively evaluated for impairment | 274,310 | 243,123 | ||
Total ending loan balance | 277,028 | 247,543 | ||
Construction [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Collectively evaluated for impairment | 2,254 | 759 | ||
Total ending allowance balance | 2,254 | 759 | 739 | |
Collectively evaluated for impairment | 80,426 | 67,652 | ||
Total ending loan balance | 80,426 | 67,652 | ||
Home Equity Line Of Credit [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Collectively evaluated for impairment | 276 | 265 | ||
Total ending allowance balance | 276 | 265 | 410 | |
Collectively evaluated for impairment | 20,962 | 20,941 | ||
Total ending loan balance | 20,962 | 20,941 | ||
Other Consumer [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Collectively evaluated for impairment | 116 | 61 | ||
Total ending allowance balance | 116 | 61 | $ 97 | |
Collectively evaluated for impairment | 2,429 | 4,174 | ||
Total ending loan balance | $ 2,429 | $ 4,174 | ||
[1] | Includes $4,133 and $4,779 of commercial leases at December 31, 2020 and December 31, 2019, respectively. |
Loans And Leases (Individually
Loans And Leases (Individually Evaluated For Impairment By Class Of Loans) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Financing Receivable, Impaired [Line Items] | |||
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | $ 3,355 | $ 4,612 | |
Impaired Financing Receivable, Unpaid Principal Balance, Total | 3,355 | 4,612 | |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 3,090 | 4,612 | |
Impaired Financing Receivable, Recorded Investment, Total | 3,090 | 4,612 | |
Impaired Financing Receivable, ALLL Allocated | 23 | 35 | |
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 111 | ||
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 3,323 | 4,394 | |
Impaired Financing Receivable, Average Recorded Investment, Total | 3,323 | 4,505 | |
Impaired Financing Receivable, with No Related Allowance, Interest Income Recognized | 6 | ||
Impaired Financing Receivable, with Related Allowance, Interest Income Recognized | 164 | 160 | |
Impaired Financing Receivable, Interest Income Recognized, Total | 164 | 166 | |
Commercial Real Estate [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | [1] | 533 | 85 |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | [1] | 268 | 85 |
Impaired Financing Receivable, ALLL Allocated | [1] | 1 | |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | [1] | 489 | 92 |
Impaired Financing Receivable, with Related Allowance, Interest Income Recognized | [1] | 10 | |
Commercial Real Estate [Member] | Maximum [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Financing Receivable, ALLL Allocated | 1 | ||
Single-Family Residential [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | [1] | 104 | 107 |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | [1] | 104 | 107 |
Impaired Financing Receivable, ALLL Allocated | [1] | 1 | |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | [1] | 106 | 108 |
Impaired Financing Receivable, with Related Allowance, Interest Income Recognized | [1] | 4 | 6 |
Single-Family Residential [Member] | Maximum [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Financing Receivable, ALLL Allocated | 1 | ||
Non-Owner Occupied [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 2,718 | 4,420 | |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 2,718 | 4,420 | |
Impaired Financing Receivable, ALLL Allocated | 23 | 33 | |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 2,728 | 4,194 | |
Impaired Financing Receivable, with Related Allowance, Interest Income Recognized | $ 150 | 154 | |
Owner Occupied [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 111 | ||
Impaired Financing Receivable, with No Related Allowance, Interest Income Recognized | $ 6 | ||
[1] | Allowance recorded is less than $1 resulting in rounding to zero |
Loans And Leases (Recorded In_2
Loans And Leases (Recorded Investment In Nonaccrual Loans By Class Of Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans past due over 90 days still on accrual | ||
Total nonaccrual and nonperforming loans | 695 | 2,439 |
Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total nonaccrual and nonperforming loans | 190 | 85 |
Single-Family Residential [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total nonaccrual and nonperforming loans | 421 | 550 |
Non-Owner Occupied [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total nonaccrual and nonperforming loans | 1,689 | |
Originated For Portfolio [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total nonaccrual and nonperforming loans | 12 | 36 |
Purchased For Portfolio [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total nonaccrual and nonperforming loans | 72 | 79 |
Nonaccrual [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total nonaccrual and nonperforming loans | $ 695 | $ 2,439 |
Loans And Leases (Aging Of Reco
Loans And Leases (Aging Of Recorded Investment In Past Due Loans By Class Of Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 2,186 | $ 5,226 |
Loans Not Past Due | 910,180 | 665,215 |
Nonaccrual Loans Not > 90 Days Past Due | 334 | 302 |
30 - 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,747 | 2,757 |
60 - 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 78 | 332 |
Greater Than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 361 | 2,137 |
Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 71 | |
Loans Not Past Due | 338,286 | 170,575 |
Nonaccrual Loans Not > 90 Days Past Due | 190 | 85 |
Commercial Real Estate [Member] | 60 - 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 71 | |
Single-Family Residential [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2,062 | 3,140 |
Loans Not Past Due | 145,798 | 117,116 |
Nonaccrual Loans Not > 90 Days Past Due | 106 | 124 |
Single-Family Residential [Member] | 30 - 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,747 | 2,453 |
Single-Family Residential [Member] | 60 - 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 261 | |
Single-Family Residential [Member] | Greater Than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 315 | 426 |
Multi-Family Residential [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Not Past Due | 45,375 | 39,229 |
Non-Owner Occupied [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 78 | 1,689 |
Loans Not Past Due | 159,835 | 138,762 |
Non-Owner Occupied [Member] | 60 - 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 78 | |
Non-Owner Occupied [Member] | Greater Than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,689 | |
Owner Occupied [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Not Past Due | 90,049 | 81,871 |
Land [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Not Past Due | 27,066 | 25,221 |
Construction [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 304 | |
Loans Not Past Due | 80,426 | 67,348 |
Construction [Member] | 30 - 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 304 | |
Originated For Portfolio [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 22 | |
Loans Not Past Due | 20,773 | 20,713 |
Nonaccrual Loans Not > 90 Days Past Due | 12 | 14 |
Originated For Portfolio [Member] | Greater Than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 22 | |
Purchased For Portfolio [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 46 | |
Loans Not Past Due | 143 | 206 |
Nonaccrual Loans Not > 90 Days Past Due | 26 | 79 |
Purchased For Portfolio [Member] | Greater Than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 46 | |
Other Consumer [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Not Past Due | $ 2,429 | $ 4,174 |
Loans And Leases (Nonaccrual Lo
Loans And Leases (Nonaccrual Loans As Troubled Debt Restructuring) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Modifications [Line Items] | ||
Total nonaccrual and nonperforming loans | $ 695 | $ 2,439 |
Commercial Real Estate [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Total nonaccrual and nonperforming loans | 190 | 85 |
Nonaccrual TDRs, Total | $ 190 | $ 85 |
Loans And Leases (Recorded In_3
Loans And Leases (Recorded Investment In Loans By Risk Category And Class Of Loans) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | $ 912,366 | $ 670,441 | |
Not Rated [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 170,790 | 146,611 | |
Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 727,392 | 512,955 | |
Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 9,434 | 5,020 | |
Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 4,560 | 5,855 | |
Doubtful [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 190 | ||
Commercial Real Estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | [1] | 338,286 | 170,646 |
Commercial Real Estate [Member] | Not Rated [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 1 | ||
Commercial Real Estate [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 337,110 | 168,617 | |
Commercial Real Estate [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 664 | 1,424 | |
Commercial Real Estate [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 321 | 605 | |
Commercial Real Estate [Member] | Doubtful [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 190 | ||
Single-Family Residential [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 147,860 | 120,256 | |
Single-Family Residential [Member] | Not Rated [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 147,439 | 119,707 | |
Single-Family Residential [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 421 | 549 | |
Multi-Family Residential [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 45,375 | 39,229 | |
Multi-Family Residential [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 45,249 | 39,081 | |
Multi-Family Residential [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 126 | 148 | |
Real Estate Commercial [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 277,028 | 247,543 | |
Non-Owner Occupied [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 159,913 | 140,451 | |
Non-Owner Occupied [Member] | Not Rated [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 57 | 67 | |
Non-Owner Occupied [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 150,084 | 134,466 | |
Non-Owner Occupied [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 7,054 | 1,498 | |
Non-Owner Occupied [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 2,718 | 4,420 | |
Owner Occupied [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 90,049 | 81,871 | |
Owner Occupied [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 87,636 | 79,773 | |
Owner Occupied [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 1,537 | 2,098 | |
Owner Occupied [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 876 | ||
Land [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 27,066 | 25,221 | |
Land [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 27,066 | 25,221 | |
Construction [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 80,426 | 67,652 | |
Construction [Member] | Not Rated [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 1,855 | ||
Construction [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 80,247 | 65,797 | |
Construction [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 179 | ||
Home Equity Line Of Credit [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 20,962 | 20,941 | |
Originated For Portfolio [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 20,773 | 20,735 | |
Originated For Portfolio [Member] | Not Rated [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 20,746 | 20,681 | |
Originated For Portfolio [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 27 | 54 | |
Purchased For Portfolio [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 189 | 206 | |
Purchased For Portfolio [Member] | Not Rated [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 118 | 127 | |
Purchased For Portfolio [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 71 | 79 | |
Other Consumer [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 2,429 | 4,174 | |
Other Consumer [Member] | Not Rated [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | $ 2,429 | $ 4,174 | |
[1] | Includes $4,133 and $4,779 of commercial leases at December 31, 2020 and December 31, 2019, respectively. |
Loans And Leases (Components Of
Loans And Leases (Components Of Net Investment In Direct Financing Leases) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | |
Loans And Leases [Abstract] | |||
Total minimum lease payments to be received | [1] | $ 4,459 | $ 5,252 |
Less: unearned income | [1] | (326) | (473) |
Net investment in direct financing leases | [1] | $ 4,133 | $ 4,779 |
[1] | There were no initial direct costs associated with these leases |
Loans And Leases (Summary Of Fu
Loans And Leases (Summary Of Future Minimum Lease Payments Receivable) (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Loans And Leases [Abstract] | |
2021 | $ 793 |
2022 | 793 |
2023 | 1,563 |
2024 | 1,310 |
Future minimum lease payments | $ 4,459 |
Foreclosed Assets (Expenses Rel
Foreclosed Assets (Expenses Related To Foreclosed Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Foreclosed Assets [Abstract] | ||
Net loss (gain) on sales | $ (12) | |
Operating expenses, net of rental income | 3 | |
Foreclosed assets, net | $ (9) |
Fair Value (Narrative) (Details
Fair Value (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Unpaid principal balance of impairment loan at collateral | $ 190 | $ 4,612 |
Valuation allowance | 0 | 35 |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Transfer of assets and liabilities measured at fair value between levels | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | 0 | 0 |
Liabilities measured at fair value | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Non-Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | 0 | 0 |
Liabilities measured at fair value | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Non-Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | 0 | 0 |
Liabilities measured at fair value | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | 0 | 0 |
Liabilities measured at fair value | $ 0 | $ 0 |
Fair Value (Assets And Liabilit
Fair Value (Assets And Liabilities Measured At Fair Value On A Recurring Basis, Including Financial Assets And Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Financial Assets: | ||
Total securities available for sale | $ 8,701 | $ 8,174 |
Loans held for sale | 283,165 | 135,711 |
Fair Value, Inputs, Level 2 [Member] | ||
Financial Assets: | ||
Total securities available for sale | 8,701 | 8,174 |
Loans held for sale | 283,165 | 135,711 |
Yield maintenance provisions (embedded derivatives) | 1,944 | 12 |
Interest rate lock commitments | 18,101 | 3,104 |
Financial Liabilities: | ||
Interest-rate swaps | 1,944 | 12 |
TBA Mortgage-backed securities | 2,690 | 350 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Financial Assets: | ||
Total securities available for sale | 8,701 | 8,174 |
Loans held for sale | 283,165 | 135,711 |
Fair Value, Measurements, Recurring [Member] | U.S. Treasury [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Financial Assets: | ||
Total securities available for sale | 8,636 | 8,017 |
Fair Value, Measurements, Recurring [Member] | Mortgage-Backed Securities - Residential [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Financial Assets: | ||
Total securities available for sale | 65 | 130 |
Fair Value, Measurements, Recurring [Member] | Collateralized Mortgage Obligations [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Financial Assets: | ||
Total securities available for sale | 27 | |
Fair Value, Measurements, Recurring [Member] | Yield Maintenance Provisions (Embedded Derivatives) [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Financial Assets: | ||
Yield maintenance provisions (embedded derivatives) | 1,944 | 12 |
Fair Value, Measurements, Recurring [Member] | Interest Rate Lock Commitments [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Financial Assets: | ||
Interest rate lock commitments | 18,101 | 3,104 |
Fair Value, Measurements, Recurring [Member] | Interest Rate Swap [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Financial Liabilities: | ||
Interest-rate swaps | 1,944 | 12 |
Fair Value, Measurements, Recurring [Member] | TBA Mortgage-Back Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Financial Liabilities: | ||
TBA Mortgage-backed securities | $ 2,690 | $ 350 |
Fair Value (Assets Measured At
Fair Value (Assets Measured At Fair Value On A Non-Recurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total impaired loans | $ 3,355 | $ 4,612 |
Fair Value, Measurements, Non-Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total impaired loans | 190 | 4,577 |
Commercial Real Estate [Member] | Fair Value, Measurements, Non-Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total impaired loans | $ 190 | 84 |
Single-Family Residential [Member] | Fair Value, Measurements, Non-Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total impaired loans | 106 | |
Non-Owner Occupied [Member] | Fair Value, Measurements, Non-Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total impaired loans | $ 4,387 |
Fair Value (Financial Instrumen
Fair Value (Financial Instruments Measured At Fair Value On A Non-Recurring Basis) (Details) - Unobservable Input, Comparability Adjustment [Member] - Fair Value, Measurements, Non-Recurring [Member] - Market Approach [Member] - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Commercial Real Estate [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair Value | $ 190 | $ 84 |
(Range) Weighted Average | 65.00% | 2.06% |
Single-Family Residential [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair Value | $ 106 | |
(Range) Weighted Average | 3.61% | |
Non-Owner Occupied [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Fair Value | $ 4,387 | |
Non-Owner Occupied [Member] | Minimum [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
(Range) Weighted Average | (2.58%) | |
Non-Owner Occupied [Member] | Maximum [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
(Range) Weighted Average | 14.00% | |
Non-Owner Occupied [Member] | Weighted Average [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
(Range) Weighted Average | 2.44% |
Fair Value (Aggregate Fair Valu
Fair Value (Aggregate Fair Value, Contractual Balance And Gain Or Loss) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value [Abstract] | ||
Aggregate fair value | $ 283,165 | $ 135,711 |
Contractual balance | 274,401 | 133,993 |
Gain | $ 8,764 | $ 1,718 |
Fair Value (Total Amount Of Gai
Fair Value (Total Amount Of Gains And Losses From Changes In Fair Value Included In Earnings) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value [Abstract] | ||
Interest income | $ 6,231 | $ 2,153 |
Interest expense | ||
Change in fair value | 7,046 | 1,341 |
Total change in fair value | $ 13,277 | $ 3,494 |
Fair Value (Carrying Amounts An
Fair Value (Carrying Amounts And Estimated Fair Values Of Financial Instruments) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Financial assets | ||
Securities available for sale | $ 8,701 | $ 8,174 |
Equity securities | 5,000 | |
Loans held for sale | 283,165 | 135,711 |
Financial liabilities | ||
FHLB advances and other borrowings | (214,426) | (29,017) |
Advances by borrowers for taxes and insurance | (1,029) | (929) |
Fair Value, Inputs, Level 1 [Member] | ||
Financial assets | ||
Cash and cash equivalents | 221,594 | 45,879 |
Interest-bearing deposits in other financial institutions | 100 | 100 |
Accrued interest receivable | 1 | 25 |
Financial liabilities | ||
Deposits | (554,650) | (382,173) |
Fair Value, Inputs, Level 2 [Member] | ||
Financial assets | ||
Interest-bearing deposits in other financial institutions | ||
Securities available for sale | 8,701 | 8,174 |
Loans held for sale | 283,165 | 135,711 |
Accrued interest receivable | 36 | 40 |
Yield maintenance provisions (embedded derivatives) | 1,944 | 12 |
Interest rate lock commitments | 18,101 | 3,104 |
Financial liabilities | ||
Deposits | (565,089) | (367,375) |
FHLB advances and other borrowings | (215,531) | (29,669) |
Subordinated debentures | (16,325) | (15,940) |
Accrued interest payable | (498) | (208) |
Interest-rate swaps | (1,944) | (12) |
TBA mortgage-backed securities | (2,690) | (350) |
Fair Value, Inputs, Level 3 [Member] | ||
Financial assets | ||
Interest-bearing deposits in other financial institutions | ||
Equity securities | 5,000 | |
Loans and leases, net | 905,030 | 664,152 |
Accrued interest receivable | 4,547 | 2,684 |
Financial liabilities | ||
Advances by borrowers for taxes and insurance | (1,029) | (929) |
Carrying Value [Member] | ||
Financial assets | ||
Cash and cash equivalents | 221,594 | 45,879 |
Interest-bearing deposits in other financial institutions | 100 | 100 |
Securities available for sale | 8,701 | 8,174 |
Equity securities | 5,000 | |
Loans held for sale | 283,165 | 135,711 |
Loans and leases, net | 895,344 | 663,303 |
FHLB and FRB stock | 5,847 | |
FHLB stock | 4,008 | |
Accrued interest receivable | 4,584 | 2,749 |
Yield maintenance provisions (embedded derivatives) | 1,944 | 12 |
Interest rate lock commitments | 18,101 | 3,104 |
Financial liabilities | ||
Deposits | (1,113,070) | (746,323) |
FHLB advances and other borrowings | (214,426) | (29,017) |
Advances by borrowers for taxes and insurance | (1,029) | (929) |
Subordinated debentures | (14,844) | (14,806) |
Accrued interest payable | (498) | (208) |
Interest-rate swaps | (1,944) | (12) |
TBA mortgage-backed securities | (2,690) | (350) |
Fair Value [Member] | ||
Financial assets | ||
Cash and cash equivalents | 221,594 | 45,879 |
Interest-bearing deposits in other financial institutions | 100 | 100 |
Securities available for sale | 8,701 | 8,174 |
Equity securities | 5,000 | |
Loans held for sale | 283,165 | 135,711 |
Loans and leases, net | 905,030 | 664,152 |
Accrued interest receivable | 4,584 | 2,749 |
Yield maintenance provisions (embedded derivatives) | 1,944 | 12 |
Interest rate lock commitments | 18,101 | 3,104 |
Financial liabilities | ||
Deposits | (1,119,739) | (749,548) |
FHLB advances and other borrowings | (215,531) | (29,669) |
Advances by borrowers for taxes and insurance | (1,029) | (929) |
Subordinated debentures | (16,325) | (15,940) |
Accrued interest payable | (498) | (208) |
Interest-rate swaps | (1,944) | (12) |
TBA mortgage-backed securities | $ (2,690) | $ (350) |
Loan Servicing (Narrative) (Det
Loan Servicing (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Loan Servicing [Abstract] | ||
Custodial escrow balances maintained in connection with serviced loans | $ 94 | $ 59 |
Loan Servicing (Principal Balan
Loan Servicing (Principal Balances Of Mortgage Loans At Year-End) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Loan Servicing [Abstract] | ||
Mortgage loans serviced for Freddie Mac | $ 1,875 | $ 2,649 |
Premises And Equipment And Op_3
Premises And Equipment And Operating Leases (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Premises And Equipment And Operating Leases [Abstract] | ||
Depreciation | $ 381 | $ 316 |
Operating lease, Weighted average remaining lease term | 3 years 3 months 18 days | |
Operating lease, Weighted average discount rate | 6.59% | |
Operating lease costs | $ 393 | 404 |
Variable lease costs | $ 244 | $ 231 |
Premises And Equipment And Op_4
Premises And Equipment And Operating Leases (Year-End Premises And Equipment) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Premises And Equipment And Operating Leases [Abstract] | ||
Land and land improvements | $ 1,293 | $ 1,293 |
Buildings | 4,140 | 4,294 |
Furniture, fixtures and equipment | 2,971 | 2,729 |
Premises and equipment, gross | 8,404 | 8,316 |
Less: accumulated depreciation | (4,674) | (4,325) |
Premises and equipment, net | $ 3,730 | $ 3,991 |
Premises And Equipment And Op_5
Premises And Equipment And Operating Leases (Future Minimum Operating Lease Payments) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Premises And Equipment And Operating Leases [Abstract] | ||
2021 | $ 548 | |
2022 | 536 | |
2023 | 377 | |
2024 | 250 | |
Thereafter | ||
Total future minimum rental commitments | 1,711 | |
Less - amounts representing interest | (179) | |
Total operating lease liabilities | $ 1,532 | $ 1,960 |
Deposits (Narrative) (Details)
Deposits (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deposits [Abstract] | ||
Time deposits, $100,000 or more | $ 461,401 | $ 294,452 |
Time deposits, $250,000 or more | 244,840 | 148,473 |
Brokered deposits | $ 168,708 | $ 124,884 |
Deposits (Scheduled Maturities
Deposits (Scheduled Maturities Of Time Deposits) (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Deposits [Abstract] | |
2021 | $ 358,512 |
2022 | 143,458 |
2023 | 36,680 |
2024 | 19,671 |
2025 | 99 |
Thereafter | |
Total | $ 558,420 |
FHLB Advances And Other Debt (N
FHLB Advances And Other Debt (Narrative) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2018 | |
Amount available of FHLB | $ 81,409,000 | |||
Federal Reserve Bank Advances [Member] | ||||
Outstanding borrowings | $ 0 | 0 | ||
Debt instrument maximum borrowing capacity amount | 81,508,000 | |||
Line Of Credit [Member] | Third-Party Bank [Member] | ||||
Line of credit, borrowing capacity | $ 10,000,000 | |||
Line of credit outstanding | 0 | 5,000,000 | ||
Line Of Credit [Member] | Third-Party Bank [Member] | Term Loan [Member] | ||||
Principal payments | $ 125,000 | |||
Variable rate spread | 0.75% | |||
Line of credit, expiration date | Dec. 23, 2022 | |||
Line of credit outstanding | 5,000,000 | $ 4,500,000 | ||
Line Of Credit [Member] | Commercial Bank One [Member] | ||||
Unused line of credit | 50,000,000 | |||
Line Of Credit [Member] | Commercial Bank Two [Member] | ||||
Unused line of credit | 15,000,000 | |||
Line Of Credit [Member] | Commercial Bank One And Two [Member] | ||||
Line of credit outstanding | 0 | $ 0 | ||
FRB PPPLF Advances [Member] | ||||
PPPLF fixed rate | 0.35% | |||
Weighted average life | 1 year 2 months 12 days | |||
Outstanding borrowings | $ 107,413,000 | |||
Warehouse Facility One [Member] | Commercial Bank [Member] | ||||
Line of credit, borrowing capacity | 25,000,000 | |||
Line of credit outstanding | 7,517,000 | 0 | ||
Warehouse Facility Two [Member] | Commercial Bank [Member] | ||||
Line of credit, borrowing capacity | $ 75,000,000 | |||
Line of credit outstanding | $ 0 | $ 70,013,000 | ||
Minimum [Member] | Warehouse Facility One [Member] | Commercial Bank [Member] | London Interbank Offered Rate [Member] | ||||
Variable rate spread | 2.00% | |||
Minimum [Member] | Warehouse Facility Two [Member] | Commercial Bank [Member] | London Interbank Offered Rate [Member] | ||||
Variable rate spread | 1.75% | |||
Maximum [Member] | Warehouse Facility One [Member] | Commercial Bank [Member] | London Interbank Offered Rate [Member] | ||||
Variable rate spread | 4.00% | |||
Maximum [Member] | Warehouse Facility Two [Member] | Commercial Bank [Member] | London Interbank Offered Rate [Member] | ||||
Variable rate spread | 3.50% |
FHLB Advances And Other Debt (S
FHLB Advances And Other Debt (Schedule Of FHLB Advances And Other Debt) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
2020, FHLB Weighted Average Rate | ||
2021, FHLB Weighted Average Rate | 1.63% | |
2022, FHLB Weighted Average Rate | 1.16% | |
2023, FHLB Weighted Average Rate | 0.92% | |
2024, FHLB Weighted Average Rate | 1.90% | |
FRB PPPLF advances, Weighted Average Rate | 0.35% | |
2020, FHLB fixed rate advances | $ 4,500 | |
2021, FHLB fixed rate advances | 7,500 | 4,000 |
2022, FHLB fixed rate advances | 10,000 | 1,500 |
2023, FHLB fixed rate advances | 3,500 | 6,500 |
2024, FHLB fixed rate advances | 6,500 | |
Total FHLB fixed rate advances | 27,500 | 16,500 |
FRB PPPLF advances | 107,413 | |
Total variable rate other debt | 79,513 | 12,517 |
Total | $ 214,426 | 29,017 |
Holding Company Credit Facility [Member] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Variable rate other debt, Weighted Average Rate | 4.00% | |
Total variable rate other debt | $ 9,500 | 5,000 |
Warehouse Facility One [Member] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Variable rate other debt, Weighted Average Rate | 3.50% | |
Total variable rate other debt | $ 70,013 | $ 7,517 |
FHLB Advances And Other Debt _2
FHLB Advances And Other Debt (Schedule Of Federal Home Loan Advances Pledged By Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Collateral pledged for secure advances | $ 110,951 | $ 118,443 |
Securities [Member] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Collateral pledged for secure advances | 1,017 | 3,074 |
Cash [Member] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Collateral pledged for secure advances | 3,300 | 3,300 |
Single-Family Residential [Member] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Collateral pledged for secure advances | 87,076 | 79,144 |
Multi-Family Residential [Member] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Collateral pledged for secure advances | 10,970 | 21,258 |
Real Estate Commercial [Member] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Collateral pledged for secure advances | 5,750 | 6,639 |
Home Equity Line Of Credit [Member] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Collateral pledged for secure advances | $ 2,838 | $ 5,028 |
FHLB Advances And Other Debt (F
FHLB Advances And Other Debt (FHLB Advances And Other Debt Outstanding Maturity Period) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
FHLB Advances And Other Debt [Abstract] | ||
2021 | $ 78,013 | |
2022 | 126,413 | |
2023 | 3,500 | |
2024 | 6,500 | |
2025 | ||
Total | $ 214,426 | $ 29,017 |
FHLB Advances And Other Debt (A
FHLB Advances And Other Debt (Assets Pledged As Collateral With FRB) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Assets Pledged As Collateral [Line Items] | ||
Assets pledged as collateral with the FRB | $ 125,569 | $ 116,050 |
Commercial Real Estate [Member] | ||
Assets Pledged As Collateral [Line Items] | ||
Assets pledged as collateral with the FRB | 39,914 | 38,317 |
Real Estate Commercial [Member] | ||
Assets Pledged As Collateral [Line Items] | ||
Assets pledged as collateral with the FRB | $ 85,655 | $ 77,733 |
Subordinated Debentures (Narrat
Subordinated Debentures (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2003 | |
Subsidiary, Sale of Stock [Line Items] | ||||
Subordinated debentures | $ 14,844 | $ 14,806 | ||
Holding Company's investment in the common stock | $ 155 | |||
Private Placement [Member] | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Holding Company, closed a pooled private offering | 5,000 | |||
Trust preferred securities with a liquidation amount | $ 1 | |||
Subordinated Debentures Maturing On December 30, 2033 [Member] | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Holding Company may redeem the subordinated debentures in a principal amount with integral multiples | $ 1 | |||
Percentage in which holding company redeem subordinated debentures | 100.00% | |||
Maturity date | Dec. 30, 2033 | |||
Trust preferred securities and subordinated debentures have a stated percentage | 3.09% | 4.81% | ||
Subordinated Debentures [Member] | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Subordinated debentures | $ 5,155 | |||
Subordinated Debentures [Member] | Subordinated Debentures Maturing On December 30, 2033 [Member] | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Number of years with no principal repayment | 5 years | |||
Maximum number of years for deferred interest payments | 5 years | |||
Subordinated Debentures [Member] | Fixed-To-Floating Rate Subordinated Notes [Member] | Private Placement [Member] | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Maturity date | Dec. 30, 2028 | |||
Subordinated notes | $ 10,000 | |||
Debt issuance costs | 388 | |||
Debt issuance costs, net | $ 9,612 | $ 9,689 | ||
Subordinated Debentures [Member] | Fixed-To-Floating Rate Subordinated Notes [Member] | Private Placement [Member] | From December 20, 2018 To But Excluding December 30, 2023 [Member] | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Interest rate | 7.00% | |||
London Interbank Offered Rate [Member] | Subordinated Debentures Maturing On December 30, 2033 [Member] | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Variable rate of interest | 2.85% | 2.85% | ||
London Interbank Offered Rate [Member] | Subordinated Debentures [Member] | Fixed-To-Floating Rate Subordinated Notes [Member] | Private Placement [Member] | From December 30, 2023 To But Excluding December 30, 2028 [Member] | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Variable rate of interest | 4.14% |
Benefit Plans (Narrative) (Deta
Benefit Plans (Narrative) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Jul. 01, 2020 | Jul. 01, 2019 |
Life Insurance Benefits [Member] | |||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Benefit plan expense | $ (16) | $ (12) | |||||||
Accrued interest payable and other liabilities Total | 154 | 171 | |||||||
401 (k) plan [Member] | |||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Total contributions | $ 293 | 188 | |||||||
Percentage of amount allowable under federal tax regulations | 50.00% | ||||||||
Percentage of compensation contributed under federal tax regulations | 6.00% | ||||||||
Salary Continuation Agreement [Member] | |||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Benefit plan expense | $ 7 | 8 | |||||||
Accrued interest payable and other liabilities Total | 152 | $ 170 | |||||||
Annual benefit for 20 years | $ 25 | ||||||||
Duration of Annual benefit | 20 years | ||||||||
Multi-Employer Pension Plan [Member] | |||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Unfunded liability | $ 110 | $ 104 | $ 110 | ||||||
CFBank's contributions | $ 29 | 59 | |||||||
Funded status | 90.19% | 89.69% | |||||||
Total contributions | $ 138,322 | $ 164,570 | |||||||
Percentage of amount allowable under federal tax regulations | 5.00% | 5.00% |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2012 | |
Proceeds from sale of common stock | $ 22,500,000 | ||
Net operating loss carry forwards | $ 22,416,000 | ||
Carryforwards utilize limit before the stock offering closed | 163,000 | ||
Unutilized operating loss carryforwards that will expire | 20,520,000 | ||
Reduced deferred tax assets and valuation allowance | 6,977,000 | ||
Deferred tax liability to be recorded | $ 473,000 | ||
Effective tax rate | 18.00% | 20.00% | |
Additional bad debt deductions | $ 2,250,000 | ||
Deferred tax asset | 4,747,000 | $ 1,721,000 | |
Deferred tax asset, valuation allowance | 0 | ||
Unrecognized tax benefits | $ 0 | $ 0 | |
Minimum [Member] | |||
Net operating loss carryforwards, expiration date | Jan. 1, 2024 | ||
Maximum [Member] | |||
Net operating loss carryforwards, expiration date | Dec. 31, 2032 |
Income Taxes (Income Tax Expens
Income Taxes (Income Tax Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Operating Loss Carryforwards [Line Items] | |||
Current federal | $ 9,720 | $ 2,627 | |
Deferred federal | [1] | (3,045) | (187) |
Total | 6,675 | 2,440 | |
Operating Loss Carryforwards [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Deferred federal | $ 34 | $ 34 | |
[1] | Includes tax benefit of operating loss carryforwards of $34 and $34 for the years ended December 31, 2020 and 2019, respectively. |
Income Taxes (Effective Tax Rat
Income Taxes (Effective Tax Rates Differ From Federal Statutory Rate) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Taxes [Abstract] | ||
Federal statutory income tax rate | 21.00% | 21.00% |
Federal statutory rate times financial statement income | $ 7,619 | $ 2,529 |
Stock compensation | (19) | (18) |
Bank owned life insurance income | (30) | (30) |
Historic tax credits | (807) | |
Low income housing tax credits | (106) | (59) |
Other | 18 | 18 |
Total | $ 6,675 | $ 2,440 |
Effective tax rate | 18.00% | 20.00% |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets: | ||
Allowance for loan and lease losses | $ 3,407 | $ 1,170 |
Compensation related issues | 1,815 | 433 |
Deferred loan fees | 293 | |
Nonaccrual interest | 57 | 55 |
Net operating loss carryforward | 398 | 432 |
Operating lease liabilities | 322 | 412 |
Gross deferred tax assets | 6,292 | 2,502 |
Deferred tax liabilities: | ||
FHLB stock dividend | 226 | 226 |
Deferred loan costs | 7 | |
Depreciation | 15 | 73 |
Operating lease right-of-use assets | 291 | 374 |
Unrealized mark-to-market gain | 935 | 32 |
Other | 2 | 4 |
Prepaid expenses | 76 | 65 |
Deferred tax liabilities | 1,545 | 781 |
Net deferred tax asset | $ 4,747 | $ 1,721 |
Related-Party Transactions (Nar
Related-Party Transactions (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Related-Party Transactions [Abstract] | ||
Deposits from principal officers, directors, and their affiliates | $ 3,844 | $ 976 |
Related-Party Transactions (Loa
Related-Party Transactions (Loans To Principal Officers, Directors And Affiliates) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Related-Party Transactions [Abstract] | ||
Beginning balance | $ 6,113 | $ 3,672 |
New loans | 4,193 | 3,062 |
Repayments | (29) | (621) |
Ending balance | $ 10,277 | $ 6,113 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020USD ($)ShareBasedCompensationPlanshares | Dec. 31, 2019USD ($)shares | May 29, 2019shares | May 16, 2013shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of stock-based compensation plans | ShareBasedCompensationPlan | 2 | |||
Compensation cost | $ | $ 711 | $ 527 | ||
Total income tax (expense) benefit | $ | $ 149 | $ 111 | ||
Options exercised | 4,545 | 0 | ||
Shares granted | 0 | 0 | ||
2009 Equity Compensation Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares available to be issued | 272,727 | |||
Shares remaining available | 251,014 | |||
Maximum [Member] | 2019 Equity Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized | 300,000 | |||
Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting periods exercisable from date of grant | 10 years | |||
Shares cancelled, forfeited or expired | 451 | 941 | ||
Stock Options [Member] | 2009 Equity Compensation Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized | 36,363 | |||
Stock Options [Member] | Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting periods | 1 year | |||
Stock Options [Member] | Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting periods | 3 years | |||
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares available to be issued | 19,660 | 73,738 | ||
Shares vested | 55,877 | 36,288 | ||
Shares cancelled, forfeited or expired | 6,897 | 3,858 | ||
Unrecognized compensation cost | $ | $ 623 | $ 1,221 |
Stock-Based Compensation (Summa
Stock-Based Compensation (Summary Of Stock Option Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Stock-Based Compensation [Abstract] | ||
Shares, Outstanding at beginning of year | 95,438 | |
Shares, Exercised | (4,545) | 0 |
Shares, Expired | (437) | |
Shares Cancelled or forfeited | (14) | |
Shares, Outstanding at end of period | 90,442 | 95,438 |
Shares, Exercisable at end of period | 90,442 | |
Weighted Average Exercise Price, Outstanding at beginning of year | $ 7.64 | |
Weighted Average Exercise Price, Exercised | 7.98 | |
Weighted Average Exercise Price, Expired | 17.33 | |
Weighted Average Exercise Price, Cancelled or forfeited | 17.33 | |
Weighted Average Exercise Price, Outstanding at end of period | 7.57 | $ 7.64 |
Weighted Average Exercise Price, Exercisable at end of period | $ 7.57 | |
Weighted Average Remaining Contractual Term (Years), Outstanding at end of period | 2 years 4 months 24 days | |
Weighted Average Remaining Contractual Term (Years), Exercisable at end of period | 2 years 4 months 24 days | |
Intrinsic Value, Outstanding at end of period | $ 915 | |
Intrinsic Value, Exercisable at end of period | $ 915 |
Stock-Based Compensation (Sum_2
Stock-Based Compensation (Summary Of Changes In Company's Nonvested Restricted Shares) (Details) - Restricted Stock [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Shares, Nonvested at, Beginning | 102,916 | |
Shares, Granted | 19,660 | |
Shares, Vested | (55,877) | (36,288) |
Shares, Forfeited | (6,897) | |
Shares, Nonvested at, Ending | 59,802 | 102,916 |
Weighted Average Grant date Fair Value, Nonvested at, Beginning | $ 13.11 | |
Weighted Average Grant date Fair Value, Granted | 10.02 | |
Weighted Average Grant date Fair Value, Vested | 13.18 | |
Weighted Average Grant date Fair Value, Forfeited | 12.35 | |
Weighted Average Grant date Fair Value, Nonvested at, Ending | $ 12.12 | $ 13.11 |
Preferred Stock (Narrative) (De
Preferred Stock (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | Mar. 30, 2020 | Oct. 31, 2019 | Oct. 06, 2017 | Apr. 30, 2014 | Dec. 31, 2017 | Dec. 31, 2014 | Dec. 31, 2020 | May 28, 2020 | Dec. 31, 2019 | Oct. 25, 2019 |
Schedule of Capitalization, Equity [Line Items] | ||||||||||
Common stock, par value | $ 0.01 | $ 0.01 | ||||||||
Shares authorized | 9,090,909 | 9,090,909 | ||||||||
Series B Preferred Stock [Member] | ||||||||||
Schedule of Capitalization, Equity [Line Items] | ||||||||||
Issuance of preferred stock | 0 | 0 | ||||||||
Aggregate value | ||||||||||
Number of shares converted | 480,000 | |||||||||
Stock conversion, estimated preferred stock dividends eliminated quarterly | $ 188 | |||||||||
Stock conversion, estimated preferred stock dividends eliminated annually | $ 750 | |||||||||
Preferred stock, par value | $ 0.01 | $ 0.01 | ||||||||
Series B Preferred Stock [Member] | Private Placement [Member] | ||||||||||
Schedule of Capitalization, Equity [Line Items] | ||||||||||
Issuance of preferred stock | 480,000 | |||||||||
Debt Conversion, Original Debt, Interest Rate of Debt | 6.25% | |||||||||
Price per share | $ 25 | |||||||||
Aggregate value | $ 12,000 | |||||||||
Placement fees | 482 | |||||||||
Other offering expenses | 149 | |||||||||
Net proceeds from issuance of Series B preferred stock | $ 11,369 | |||||||||
Series C Preferred Stock [Member] | ||||||||||
Schedule of Capitalization, Equity [Line Items] | ||||||||||
Issuance of preferred stock | 0 | 12,337 | ||||||||
Aggregate value | ||||||||||
Preferred stock, par value | $ 0.01 | $ 0.01 | ||||||||
Number of outstanding shares | 12,607 | |||||||||
Series C Preferred Stock [Member] | Private Placement [Member] | ||||||||||
Schedule of Capitalization, Equity [Line Items] | ||||||||||
Issuance of preferred stock | 12,337 | |||||||||
Aggregate value | $ 25,000 | |||||||||
Purchase price per share | $ 1,200 | |||||||||
Shares upon conversion | 270 | |||||||||
Preferred stock, par value | $ 0.01 | |||||||||
Common Stock [Member] | ||||||||||
Schedule of Capitalization, Equity [Line Items] | ||||||||||
Number of shares converted | 100 | |||||||||
Shares issued upon conversion | 6,857,143 | |||||||||
Shares post-reverse-split | 1,246,753 | |||||||||
Number of shares exchange | 27,000 | |||||||||
Common Stock [Member] | Private Placement [Member] | ||||||||||
Schedule of Capitalization, Equity [Line Items] | ||||||||||
Shares sold | 849,615 | |||||||||
Purchase price per share | $ 12 | |||||||||
Non-Voting Common Stock [Member] | ||||||||||
Schedule of Capitalization, Equity [Line Items] | ||||||||||
Shares upon conversion | 100 | |||||||||
Common stock, par value | $ 0.01 | $ 0.01 | ||||||||
Shares authorized | 1,260,700 | 1,260,700 | 1,260,700 | |||||||
Non-Voting Common Stock [Member] | Private Placement [Member] | ||||||||||
Schedule of Capitalization, Equity [Line Items] | ||||||||||
Shares upon conversion | 100 | |||||||||
Common stock, par value | $ 0.01 |
Common Stock Warrants (Narrativ
Common Stock Warrants (Narrative) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Apr. 30, 2014 | |
Class of Warrant or Right [Line Items] | |||
Warrant, shares | 0 | 0 | |
Series B Preferred Stock [Member] | |||
Class of Warrant or Right [Line Items] | |||
Issuance of preferred stock | 0 | 0 | |
Common Stock [Member] | |||
Class of Warrant or Right [Line Items] | |||
Warrants, issued | 1,152,125 | ||
Warrants, exercise period | 5 years | ||
Common Stock [Member] | Post-Reverse-Split Basis [Member] | |||
Class of Warrant or Right [Line Items] | |||
Warrants, issued | 209,477 | ||
Exercise price of warrant | $ 10.18 | ||
Private Placement [Member] | Series B Preferred Stock [Member] | |||
Class of Warrant or Right [Line Items] | |||
Issuance of preferred stock | 480,000 |
Regulatory Capital Matters (Nar
Regulatory Capital Matters (Narrative) (Details) - USD ($) $ in Thousands | Jan. 01, 2019 | Dec. 31, 2020 |
Regulatory Capital Matters [Abstract] | ||
Future percent of common equity to risk-weighted assets | 2.50% | |
Common Equity Tier 1 capital to risk-weighted assets, ratio | 4.50% | |
Capital conservation buffer | 2.50% | |
Common Equity Tier 1 capital to risk weighted assets, upon full implementation, ratio | 7.00% | |
Tier 1 Capital To Risk Weighted Assets Ratio | 6.00% | |
Tier 1 Capital To Risk Weighted Assets Upon Full Implementation Ratio | 8.50% | |
Total Capital To Risk Weighted Assets Ratio | 8.00% | |
Total Capital To Risk Weighted Assets Upon Full Implementation Ratio | 10.50% | |
Minimum Leverage Ratio Based On Required Basel 3 Rules | 4.00% | |
Opening balance in liquidation account | $ 14,300 |
Regulatory Capital Matters (Act
Regulatory Capital Matters (Actual And Required Capital Amounts And Ratios Of CFBank) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total Capital to risk weighted assets, Actual Amount | $ 136,683 | $ 95,164 |
Tier 1 (Core) Capital to risk weighted assets, Actual Amount | 124,678 | 87,857 |
Common equity tier 1 capital to risk-weighted assets, Actual Amount | 124,678 | 87,857 |
Tier 1 (Core) Capital to adjusted total assets (Leverage ratio), Actual Amount | $ 124,678 | $ 87,857 |
Total Capital to risk weighted assets, Actual Ratio | 0.1431 | 0.1296 |
Tier 1 (Core) Capital to risk weighted assets, Actual Ratio | 0.1305 | 0.1197 |
Common equity tier 1 capital to risk-weighted assets, Actual Ratio | 0.1305% | 0.1197% |
Tier 1 (Core) Capital to adjusted total assets, Actual Ratio | 0.0974 | 0.1058 |
Total Capital to risk weighted assets, To Be Well Capitalized Under Applicable Regulatory Capital Standards Amount | $ 95,522 | $ 73,425 |
Tier 1 (Core) Capital to risk weighted assets, To Be Well Capitalized Under Applicable Regulatory Capital Standards Amount | 76,418 | 58,740 |
Common equity tier 1 capital to risk-weighted assets, To Be Well Capitalized Under Applicable Regulatory Capital Standards Amount | 62,089 | 47,726 |
Tier 1 (Core) Capital to adjusted total assets, To Be Well Capitalized Under Applicable Regulatory Capital Standards Amount | $ 63,984 | $ 41,526 |
Total Capital to risk weighted assets, To Be Well Capitalized Under Applicable Regulatory Capital Standards Ratio | 0.1000 | 0.1000 |
Tier 1 (Core) Capital to risk weighted assets, To Be Well Capitalized Under Applicable Regulatory Capital Standards Ratio | 0.0800 | 0.0800 |
Common equity tier 1 capital to risk-weighted assets, To Be Well Capitalized Under Applicable Regulatory Capital Standards Ratio | 0.065% | 0.065% |
Tier 1 (Core) Capital to adjusted total assets, To Be Well Capitalized Under Applicable Regulatory Capital Standards Ratio | 0.0500 | 0.0500 |
Basel III Fully Phased-In [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total Capital to risk weighted assets, Minimum Capital Required-Basel III Fully Phased-In Amount | $ 100,298 | $ 77,097 |
Tier 1 (Core) Capital to risk weighted assets, Minimum Capital Required-Basel III Fully Phased-In Amount | 81,194 | 62,412 |
Common equity tier 1 capital to risk-weighted assets, Minimum Capital Required-Basel III Fully Phased-In Amount | 66,866 | 51,398 |
Tier 1 (Core) Capital to adjusted total assets, Minimum Capital Required-Basel III Fully Phased-In Amount | $ 51,187 | $ 33,221 |
Total Capital to risk weighted assets, Minimum Capital Required-Basel III Fully Phased-In Ratio | 0.1050 | 0.1050 |
Tier 1 (Core) Capital to risk weighted assets, Minimum Capital Required-Basel III Fully Phased-In Ratio | 0.0850 | 0.0850 |
Common equity tier 1 capital to risk-weighted assets, Minimum Capital Required-Basel III Fully Phased-In Ratio | 0.07% | 0.07% |
Tier 1 (Core) Capital to adjusted total assets, Minimum Capital Required-Basel III Fully Phased-In Ratio | 0.0400 | 0.0400 |
Derivative Instruments (Narrati
Derivative Instruments (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative [Line Items] | ||
Net gains or losses recognized in earnings related to yield maintenance provisions and interest-rate swaps | $ 0 | $ 0 |
Interest Rate Swap [Member] | ||
Derivative [Line Items] | ||
Notional amount | 46,474,000 | 12,039,000 |
Interest-rate swaps | 2,392,000 | |
Posted cash collateral | 2,392,000 | |
Interest Rate Lock Commitments [Member] | ||
Derivative [Line Items] | ||
Notional amount | 1,048,613,000 | 297,454,000 |
Fair value, Derivative assets | $ 18,100,000 | 3,104,000 |
Interest Rate Lock Commitments [Member] | Minimum [Member] | ||
Derivative [Line Items] | ||
Commitments period | 30 days | |
Interest Rate Lock Commitments [Member] | Maximum [Member] | ||
Derivative [Line Items] | ||
Commitments period | 60 days | |
TBA Mortgage-Back Securities [Member] | ||
Derivative [Line Items] | ||
Posted cash collateral | $ 4,847,000 | |
Notional amount | 506,750,000 | 225,500,000 |
Fair value | $ (2,690,000) | $ (350,000) |
Derivative Instruments (Summary
Derivative Instruments (Summary Of Derivative Instruments) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Interest Rate Swap [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional amount | $ 46,474 | $ 12,039 |
Weighted average pay rate on interest-rate swaps | 4.19% | 4.66% |
Weighted average receive rate on interest-rate swaps | 3.08% | 4.63% |
Weighted average maturity (years) | 7 years 4 months 24 days | 7 years 3 months 18 days |
Fair value of interest-rate swaps | $ (1,944) | $ (12) |
Yield Maintenance Provisions [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value of yield maintenance provisions | $ 1,944 | $ 12 |
Derivative Instruments (Schedul
Derivative Instruments (Schedule Of Mortgage Banking Derivatives) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Interest Rate Commitments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount, Assets | $ 1,048,613 | $ 297,454 |
Fair value, Derivative assets | 18,100 | 3,104 |
TBA Mortgage-Back Securities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount, Assets | 506,750 | 225,500 |
Fair Value, Derivative | $ (2,690) | $ (350) |
Derivative Instruments (Sched_2
Derivative Instruments (Schedule Of Notional Amount Of Loans Sold) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative Instruments [Abstract] | ||
Notional amount of loans sold | $ 2,229,042 | $ 411,257 |
Derivative Instruments (Sched_3
Derivative Instruments (Schedule Of Revenue Recognized On Mortgage Activities) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative Instruments [Abstract] | ||
Gain on loans sold | $ 61,146 | $ 9,603 |
Gain (loss) from change in fair value of loans held-for-sale | 7,046 | 1,341 |
Gain (loss) from change in fair value of derivatives | (9,895) | (490) |
Revenue recognized on mortgage activities | $ 58,297 | $ 10,454 |
Loan Commitments And Other Re_3
Loan Commitments And Other Related Activities (Narrative) (Details) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Contractual Commitments Contingencies And Off Balance Sheet Arrangements [Line Items] | ||
Period for commitments and construction loan commitments | 60 days | |
Construction [Member] | ||
Contractual Commitments Contingencies And Off Balance Sheet Arrangements [Line Items] | ||
Period for commitments and construction loan commitments | 1 year | |
Minimum [Member] | ||
Contractual Commitments Contingencies And Off Balance Sheet Arrangements [Line Items] | ||
Interest rates for fixed rate loan commitments | 2.00% | 2.00% |
Maturities for fixed rate loan commitments | 1 month | 3 months |
Maximum [Member] | ||
Contractual Commitments Contingencies And Off Balance Sheet Arrangements [Line Items] | ||
Interest rates for fixed rate loan commitments | 6.50% | 8.75% |
Maturities for fixed rate loan commitments | 30 years | 30 years |
Loan Commitments And Other Re_4
Loan Commitments And Other Related Activities (Contractual Amounts Of Financial Instruments With Off-Balance-Sheet Risk) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Commitments to make loans [Member] | ||
Other Contingencies And Commitments [Line Items] | ||
Fixed Rate | $ 1,072,963 | $ 314,705 |
Variable Rate | 31,239 | 43,979 |
Unused lines of credit [Member] | ||
Other Contingencies And Commitments [Line Items] | ||
Fixed Rate | 20,395 | 10,678 |
Variable Rate | 65,788 | 55,684 |
Standby letters of credit [Member] | ||
Other Contingencies And Commitments [Line Items] | ||
Fixed Rate | $ 3,997 | $ 1,415 |
Parent Company Only Condensed_3
Parent Company Only Condensed Financial Information (Condensed Balance Sheets) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
ASSETS | |||
Cash and cash equivalents | $ 221,594 | $ 45,879 | $ 67,304 |
Equity securities | 5,000 | ||
Other assets | 34,637 | 12,254 | |
Total assets | 1,476,995 | 880,545 | |
Liabilities and Equity | |||
Subordinated debentures | 14,844 | 14,806 | |
Stockholders' equity | 110,210 | 80,664 | 45,559 |
Total liabilities and stockholder's equity | 1,476,995 | 880,545 | |
Parent Company [Member] | |||
ASSETS | |||
Cash and cash equivalents | 1,785 | 10,037 | $ 2,675 |
Equity securities | 5,000 | ||
Investment in banking subsidiary | 125,172 | 88,317 | |
Investment in and advances to other subsidiary | 241 | 238 | |
Other assets | 2,533 | 2,045 | |
Total assets | 134,731 | 100,637 | |
Liabilities and Equity | |||
Subordinated debentures | 14,844 | 14,806 | |
Other borrowings | 9,500 | 5,000 | |
Accrued expenses and other liabilities | 177 | 167 | |
Stockholders' equity | 110,210 | 80,664 | |
Total liabilities and stockholder's equity | $ 134,731 | $ 100,637 |
Parent Company Only Condensed_4
Parent Company Only Condensed Financial Information (Condensed Statements Of Operations) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Interest income | $ 42,386 | $ 35,104 |
Other income | 198 | 96 |
Interest expense | 14,578 | 13,404 |
Loss before income tax and before undistributed subsidiary income | 36,283 | 12,041 |
Tax effect | 6,675 | 2,440 |
Net income | 29,608 | 9,601 |
Comprehensive income | 29,676 | 9,702 |
Parent Company [Member] | ||
Other income | 178 | 70 |
Interest expense | 1,209 | 1,353 |
Other expense | 830 | 758 |
Loss before income tax and before undistributed subsidiary income | (1,861) | (2,041) |
Tax effect | 390 | 427 |
Loss after income tax and before undistributed subsidiary income | (1,471) | (1,614) |
Equity in undistributed subsidiary income | 31,079 | 11,215 |
Net income | 29,608 | 9,601 |
Comprehensive income | $ 29,676 | $ 9,702 |
Parent Company Only Condensed_5
Parent Company Only Condensed Financial Information (Condensed Statements Of Cash Flows) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities | ||
Net income | $ 29,608 | $ 9,601 |
Amortization, net | (1,510) | (96) |
Net cash used by operating activities | (123,465) | (103,538) |
Cash flows from investing activities | ||
Purchase of equity securities | (5,000) | |
Net cash used by investing activities | (259,754) | (111,402) |
Cash flows from financing activities: | ||
Net proceeds from the issuance of preferred stock private placement | 14,000 | |
Net proceeds from issuance of common stock in private placement | 9,641 | |
Proceeds from exercise of stock options | 36 | |
Acquisition of treasury shares surrendered upon vesting of restricted stock for payment of taxes | (32) | (23) |
Purchase of treasury shares | (648) | |
Exercise of warrants to common stock | 1,258 | |
Dividends paid | (195) | |
Net cash from financing activities | 558,934 | 193,515 |
Net change in cash and cash equivalents | 175,715 | (21,425) |
Beginning cash and cash equivalents | 45,879 | 67,304 |
Ending cash and cash equivalents | 221,594 | 45,879 |
Parent Company [Member] | ||
Cash flows from operating activities | ||
Net income | 29,608 | 9,601 |
Effect of subsidiaries' operations | (31,079) | (11,215) |
Amortization, net | 38 | 39 |
Change in other assets and other liabilities | (480) | (939) |
Net cash used by operating activities | (1,913) | (2,514) |
Cash flows from investing activities | ||
Investments in banking subsidiary | (5,000) | (14,000) |
Purchase of equity securities | (5,000) | |
Net cash used by investing activities | (10,000) | (14,000) |
Cash flows from financing activities: | ||
Proceeds from other borrowings | 15,000 | 4,000 |
Repayments of other borrowings | (10,500) | (5,000) |
Net proceeds from the issuance of preferred stock private placement | 14,000 | |
Net proceeds from issuance of common stock in private placement | 9,641 | |
Proceeds from exercise of stock options | 36 | |
Acquisition of treasury shares surrendered upon vesting of restricted stock for payment of taxes | (32) | (23) |
Purchase of treasury shares | (648) | |
Exercise of warrants to common stock | 1,258 | |
Dividends paid | (195) | |
Net cash from financing activities | 3,661 | 23,876 |
Net change in cash and cash equivalents | (8,252) | 7,362 |
Beginning cash and cash equivalents | 10,037 | 2,675 |
Ending cash and cash equivalents | $ 1,785 | $ 10,037 |
Earnings Per Common Share (Comp
Earnings Per Common Share (Computation Of Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Basic | |||
Net income | $ 29,608 | $ 9,601 | |
Accretion of discount and value of warrants exercised related to Series B preferred stock | [1] | 219 | |
Earnings allocated to participating securities (Series C preferred stock) | [2] | (2,280) | (430) |
Net income attributable to common stockholders | $ 27,328 | $ 9,390 | |
Weighted average common shares outstanding including unvested share-based payment awards | 6,072,829 | 4,582,997 | |
Less: Unvested share-based payment awards-2019 Plan | (43,732) | (1,532) | |
Average shares | 6,029,097 | 4,581,465 | |
Basic earnings per common share | $ 4.53 | $ 2.05 | |
Diluted | |||
Net earnings allocated to common stockholders | $ 27,328 | $ 9,390 | |
Weighted average common shares outstanding for basic earnings per common share | 6,029,097 | 4,581,465 | |
Add: Dilutive effects of assumed exercises of stock options | 34,158 | 38,620 | |
Add: Dilutive effects of assumed exercises of stock warrants | 6,947 | ||
Add: Dilutive effects of unvested share-based payment awards-2019 Plan | 43,732 | 1,532 | |
Average shares and dilutive potential common shares | 6,106,987 | 4,628,564 | |
Diluted earnings per common share | $ 4.47 | $ 2.03 | |
[1] | All outstanding warrants expired on July 15, 2019. | ||
[2] | All 12,607 outstanding shares of Series C preferred stock were converted into a total of 1,260,700 shares of the Company's Non-Voting Common Stock effective as of the close of business on May 28, 2020. |
Earnings Per Common Share (Summ
Earnings Per Common Share (Summary Of Anti-Dilutive Options Or Warrants) (Details) - shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Stock Options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive shares | 331 | 463 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Schedule Of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated other comprehensive gain/(loss), beginning of period | $ 28 | ||
Net current-period other comprehensive income | 68 | $ 101 | |
Accumulated other comprehensive income, end of period | 96 | 28 | |
Unrealized Gains and Losses on Available-for-Sale Securities [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated other comprehensive gain/(loss), beginning of period | [1] | 28 | (73) |
Other comprehensive gain before reclassifications | [1] | 68 | 101 |
Less amount reclassified from accumulated other comprehensive loss | [1],[2] | ||
Net current-period other comprehensive income | [1] | 68 | 101 |
Accumulated other comprehensive income, end of period | [1] | $ 96 | $ 28 |
[1] | All amounts are net of tax. Amounts in parentheses indicate a reduction of other comprehensive income. | ||
[2] | There were no amounts reclassified out of other comprehensive income for years ended December 31, 2020 and December 31, 2019. |
Subsequent Events (Narrative) (
Subsequent Events (Narrative) (Details) - USD ($) $ in Thousands | Jan. 28, 2021 | Dec. 31, 2020 | Dec. 29, 2020 | Nov. 30, 2020 | Dec. 31, 2019 |
Subsequent Event [Line Items] | |||||
Deposits | $ 1,113,070 | $ 746,323 | |||
Subordinated debt | $ 14,844 | $ 14,806 | |||
Branch Purchase And Assumption Agreement [Member] | |||||
Subsequent Event [Line Items] | |||||
Deposits | $ 100,000 | ||||
Subordinated debt | $ 15,000 | $ 3,100 | |||
Percent of deposit premium to the average daily deposits | 1.75% | ||||
Single Family Residential Mortgage And Home Equity Line [Member] | Branch Purchase And Assumption Agreement [Member] | |||||
Subsequent Event [Line Items] | |||||
Subordinated debt | $ 13,500 | ||||
Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Stock Repurchase Program, Number of shares authorized to be repurchased | 250,000 | ||||
Stock Repurchase Program, Expiration date | Feb. 27, 2022 |