CF Bankshares Inc. Reports Strong Q4 2025 Earnings, Sets the Stage for 2026 Growth

On February 5, 2026, CF Bankshares Inc. (NASDAQ: CFBK), the parent of CFBank, National Association, announced its fourth‑quarter and full‑year 2025 financial results. The figures demonstrate a robust rebound from 2024, driven by disciplined risk management, a disciplined cost structure, and a deepening loan pipeline in the firm’s core metropolitan markets.

Earnings Highlights

  • Q4 2025 Net Income: $5.7 million ($0.88 per diluted share).
  • Full‑Year 2025 Net Income: $17.5 million ($2.69 per diluted share), a 31 % increase over 2024.
  • Pre‑provision, pre‑tax net revenue (PPNR): $8.0 million in Q4; $29.8 million for the year, up 30 % YoY.
  • Return on Average Equity (ROE): 12.59 % in Q4, 12.59 % for the year, underscoring a sustained earnings‑quality framework.
  • Return on Average Assets (ROA): 1.09 % for the year, reflecting efficient asset utilisation.
  • Net Interest Margin (NIM): Up 28 bps in Q4 and 34 bps for the year versus 2024, a testament to tighter pricing discipline and a favourable interest‑rate environment.
  • Cost of Funds: Declined 45 bps in Q4 and 48 bps for the year, further supporting margin expansion.

The company’s efficiency ratio improved markedly to 49.2 % for Q4, down from 53.2 % in Q4 2024, reflecting a sustained focus on cost‑control and productivity.

Capital Position and Balance‑Sheet Strength

  • Tier 1 Leverage Ratio: 11.40 %.
  • Total Capital Ratio: 15.02 %.
  • Book Value per Share: $27.87 as of December 31, 2025.

These metrics confirm a solid capital base that will support continued growth initiatives.

Loan Portfolio Dynamics

Commercial loan fundings reached $369 million in 2025, offsetting substantial loan payoffs from successful commercial real‑estate refinancing projects. Core deposits increased by $47 million, bolstering liquidity and funding capacity. Residential mortgage underwriting has been refined, with a modest uptick in portfolio yield and a reduction in lower‑rate loans, enhancing overall interest‑margin quality.

Strategic Outlook

CEO Timothy T. O’Dell highlighted the firm’s commitment to expanding its commercial and regional banking teams across the four primary metro markets. The “Branch Lite” business model, coupled with a focus on productivity, is expected to sustain the efficiency ratio below the 50 % target.

O’Dell also noted the anticipated stabilization of the interest‑rate environment in 2026, citing Federal Reserve rate cuts as a net positive for earnings. The bank’s competitive deposit mix—bolstered by municipal funding for residential mortgage portfolios—positions it to capture higher‑quality deposits across all categories.

Dividend Announcement

On January 5, 2026, the board declared a cash dividend of $0.09 per share on common stock and $9.00 per share on Series D preferred stock, paid on January 26 to shareholders of record as of January 15.

Market Context

As of February 3, 2026, CF Bankshares’ stock closed at $31.52, within a 52‑week range of $19.22 to $31.89. With a market cap of approximately $200 million and a P/E ratio of 12.47, the stock trades at a modest premium to its earnings, reflecting confidence in its earnings quality and growth trajectory.

Forward‑Looking Perspective

CF Bankshares Inc. is well‑positioned to capitalize on an improving credit market, a stabilising interest‑rate backdrop, and a disciplined operational model. The firm’s strong capital base, expanding loan pipeline, and efficient cost structure provide a robust foundation for sustained shareholder value creation in 2026 and beyond.