COLUMBUS, Ohio - CF Bankshares Inc. (NASDAQ: CFBK), the holding company of CFBank, NA, has declared a quarterly cash dividend for its common and preferred stockholders.
The dividend of $0.06 per common share and $6.00 per Series D preferred share will be paid on July 19, 2024, to shareholders on record by July 11, 2024. Each Series D preferred share is convertible into 100 shares of common stock.
CFBank, a nationally chartered commercial bank, serves four major metro markets including Columbus, Cleveland, Cincinnati in Ohio, and Indianapolis, Indiana. The bank provides a suite of services to closely held businesses and entrepreneurs, offering commercial, retail, and mortgage lending services. Since its recapitalization in 2012, CFBank has reported a compound annual growth rate exceeding 20%.
The bank has received recognition for its performance, being named one of Piper Sandler's "Bank & Thrift Sm-All Stars" for 2023 and ranking #7 on American Banker's list of Top 200 Publicly Traded Community Banks based on a three-year average return on equity as of December 31, 2022.
This announcement is based on a press release statement issued by CF Bankshares Inc.
In other recent news, CF Bankshares Inc. has updated the employment agreements for two of its key executives, Timothy T. O’Dell (NYSE:DELL) and Bradley Ringwald, according to a SEC Form 8-K filing. The changes, set to take effect on June 6, 2024, focus on the executives' compensation packages, specifically the lump sum payments they would receive in the event of a change in the bank's control followed by their termination.
The revised formula for O'Dell calculates the lump sum as twice the sum of his annual base salary and the average of his cash bonuses and equity compensation received over the prior two fiscal years. Ringwald's amendment, on the other hand, increases his potential lump sum payment to one and a half times the sum of his annual base salary and average annual bonus over the previous 24-month period.
These amendments are designed to factor in the potential for equity compensation to form a significant part of the annual bonuses. The SEC filing provides full transparency on these changes by including the amendments and the original employment agreements as exhibits. These are the latest developments for the company.
InvestingPro Insights
CF Bankshares Inc. (NASDAQ: CFBK) continues to demonstrate its commitment to shareholder returns, as evidenced by its recent declaration of a quarterly cash dividend for both common and preferred stockholders. This move aligns with the company's history of consistently rewarding its investors, with a notable InvestingPro Tip highlighting that CFBK has raised its dividend for four consecutive years, showcasing a dedication to providing shareholder value.
The bank's financial health and performance metrics provide further context for investors. According to InvestingPro Data, CFBK holds a market capitalization of approximately $119.8 million USD and maintains an attractive price-to-earnings (P/E) ratio of 7.63, which slightly adjusts to 7.7 when considering the last twelve months as of Q1 2024. This valuation suggests that the company is potentially undervalued, especially when paired with an InvestingPro Fair Value estimate of $23.00 USD, compared to its previous close at $18.76 USD.
Despite a challenging environment that has seen a revenue decline of 10.49% over the last twelve months as of Q1 2024, CFBK's operational efficiency is evident with an operating income margin of 45.86% for the same period. Moreover, the bank's dividend yield stands at 1.28%, with a significant dividend growth of 20.0% last twelve months as of Q1 2024, reinforcing the bank's solid approach to managing its capital and rewarding its shareholders.
For those interested in a deeper dive into the financials and strategic outlook of CF Bankshares Inc., there are additional InvestingPro Tips available that can provide valuable insights into the company's performance and potential. With the use of the coupon code PRONEWS24, investors can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription to access these tips and make more informed investment decisions.
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