CF Bankshares Inc. (CFBK): ANSOFF MATRIX [Dec-2025 Updated]

You're looking at CF Bankshares Inc.'s next move, fresh off a $2.3 million net income in Q3 2025, and wondering where the real growth lies. As someone who's mapped out strategies for years, I've distilled their options into this Ansoff Matrix, turning near-term risks into clear, actionable steps. We're looking at everything from the safe bet of pushing more Commercial & Industrial (C&I) loans-building on that $155 million year-to-date-to the big swing of launching a national, high-yield digital savings product. This map shows you exactly where to place your focus, whether you want to deepen market share in Cleveland or test the waters in a new state like Pennsylvania. It's time to see the path forward.

CF Bankshares Inc. (CFBK) - Ansoff Matrix: Market Penetration

You're looking to drive growth by selling more of what CF Bankshares Inc. already offers into the markets you currently serve. This is about deepening relationships and maximizing share of wallet with your existing commercial base.

Focusing on Commercial & Industrial (C&I) loan production is key here. For the nine months ending September 30, 2025, new Commercial Loan production totaled $155 million year to date. You've seen this production help offset considerable loan payoffs, mostly from Commercial Real Estate development projects moving to permanent financing. The commercial pipelines remain very strong, suggesting this momentum can continue.

Operational efficiency is a direct lever for profitability in this strategy. The Efficiency Ratio improved to 49.8% as of the third quarter of 2025, a solid step up from the 55.3% recorded for the third quarter of 2024. Cross-selling treasury management services to existing commercial clients is the mechanism to drive this ratio lower still, directly impacting the bottom line from established relationships.

To defintely deepen market share in Cleveland and Akron, you brought in Matt Tuohey in April 2025 as Market President for Northeast Ohio. He brings over 30 years of experience in commercial banking and executive leadership in that specific market, which is valuable for building out your presence there.

Relationship banking directly supports the goal of growing noninterest-bearing (NIB) deposits. In the first quarter of 2025, NIB deposit balances grew by $18 million, which was an increase of 7% during that quarter. This trajectory is something to build upon as you deepen commercial relationships.

Communicating financial strength against regional competitors is easier when you have clear metrics to point to. The book value per share provides a tangible measure of equity strength.

The increase in book value per share from $25.86 at the end of Q1 2025 to $26.99 by September 30, 2025, shows tangible progress. Furthermore, the capital position remains strong, evidenced by a Tier 1 Leverage ratio of 11.19% and a Total Capital ratio of 14.88% at September 30, 2025.

Here's a quick look at the key performance indicators supporting this market penetration push:

• New Commercial Loan production year to date: $155 million.
• NIB deposit growth in Q1 2025: $18 million, or 7%.
• Efficiency Ratio improvement (Q3 2024 to Q3 2025): From 55.3% to 49.8%.
• Book Value Per Share as of September 30, 2025: $26.99.

Finance: calculate the projected NIB deposit growth for the full year 2025 based on Q1 growth rate and Q3 total deposits of $1.78 billion by Friday.

CF Bankshares Inc. (CFBK) - Ansoff Matrix: Market Development

You're looking at how CF Bankshares Inc. can take its established commercial bank model and apply it to new geographic areas. This strategy relies on the success already built within its core Ohio and Indiana markets.

As of September 30, 2025, CF Bankshares Inc. reported total assets of $2.11 billion. The bank's growth since its 2012 recapitalization has been significant, achieving a Compound Annual Growth Rate (CAGR) in excess of 20%, with one report citing 25%. This existing operational strength provides the foundation for geographic expansion.

The existing commercial bank model is concentrated in four major metro markets: Columbus, Cleveland, and Cincinnati, Ohio, and Indianapolis, Indiana. Market development would involve entering a new, adjacent Midwest metro market like Louisville, KY, or Pittsburgh, PA, using this exact model.

The plan to establish a loan production office (LPO) in a new state serves as a low-commitment market test. This approach mirrors the existing structure of the residential mortgage lending platform, which already serves a wider geographic area nationally. The bank previously suspended its Direct-to-Consumer (DTC) mortgage lending in mid-2021 to focus on its retail mortgage lending, so a new LPO would likely focus on originating commercial or residential loans that can be processed centrally, leveraging the existing national platform infrastructure.

To immediately gain a deposit base through acquisition, CF Bankshares Inc. could target a smaller, non-competing community bank outside Ohio/Indiana. The recent internal growth in deposits shows momentum; core deposits increased by $20 million when compared to June 30, 2025. An acquisition would aim to secure a deposit base significantly larger than this quarterly organic growth figure.

Expanding the digital residential mortgage lending platform to serve a wider geographic area nationally is already partially in place, as CFBank has a national residential lending platform. Market development here means increasing the volume or market share within that national footprint, perhaps by increasing marketing spend or adding specialized loan officers in new states, rather than building the platform itself.

Attracting high-net-worth individuals in new regions relies on the core differentiator: the boutique, decision-maker access model. The success in the existing markets, evidenced by $155 million in New Commercial Loan production year-to-date in 2025, shows the commercial engine is working. The strategy in a new region would be to hire a key relationship manager, perhaps a Market President like the one added for Northeast Ohio, to replicate that direct access model for entrepreneurs and business owners in the target metro area.

The company is also focused on capital management, having authorized a stock repurchase program for up to 325,000 shares, or approximately 5% of outstanding common stock, through January 31, 2026. This suggests a degree of capital confidence that could support measured market development expenditures.

CF Bankshares Inc. (CFBK) - Ansoff Matrix: Product Development

You're looking at how CF Bankshares Inc. can grow by developing new products for its existing market of closely held businesses and entrepreneurs. This isn't about guessing; it's about building on what's already working, like that recent jump in specialized investment income.

Here's a look at the product development thrusts we should focus on, grounded in the numbers from the latest reports.

Building on SBIC Success

We saw a clear win with our Small Business Investment Company (SBIC) investments in the third quarter of 2025. Income from these investments increased by $133,000 compared to the prior quarter, which is a solid 8.7% bump in noninterest income for that period. The total noninterest income for Q3 2025 was $1.7 million. This suggests a market appetite for specialized, risk-adjusted capital solutions. The next step is to formalize this into a distinct product offering.

• Introduce a specialized SBIC fund product, targeting accredited investors within the existing client base.
• Structure the fund to mirror the successful investment thesis that drove the $133,000 Q3 2025 income uplift.
• Focus on deploying capital into high-growth, closely held businesses in the Ohio and Indiana markets.

Scaling Cash Management Fee Income

Your Cash Management products are already a growth engine. For the Full Year 2024, Customer Fees, which include these services, grew by a substantial 60%, adding $939,000 to noninterest income compared to 2023. We need to deepen this relationship by offering more sophisticated tools.

Here's a quick view of the financial context informing this push:

We should develop advanced Cash Management services, moving beyond basic transaction processing. This includes integrating treasury management software directly with client accounting systems. If onboarding takes 14+ days, churn risk rises, so the digital experience must be seamless.

Digital Wealth Platform for Business Owners

CF Bankshares Inc. serves closely held business owners. These clients often have complex personal and business financial needs that are currently managed across disparate systems. Launching a proprietary digital wealth management platform is key. This platform would allow these owners to view their business banking, commercial loans (totaling $1.73 billion in net loans and leases as of Q3 2025), and personal investment portfolios in one secure interface. It's about providing a single pane of glass for their entire financial life, defintely a product development win.

Targeted Commercial Leasing

The focus on the Commercial Bank is clear, with new commercial loan production hitting $155 million year-to-date as of Q3 2025. To support this commercial base specifically in Columbus and Cincinnati, we should offer specialized equipment leasing products. This diversifies fee income streams and provides a tangible asset-backed financing option that complements traditional term loans.

• Create leasing packages for essential business equipment, such as fleet vehicles or specialized manufacturing tools.
• Structure offerings to align with the commercial loan origination cycle.
• Target the core metro markets where CF Bankshares Inc. has established its franchise.

Addressing Uninsured Deposits

As of March 31, 2025, approximately 31.1% of our total deposit balances, which stood at $1.78 billion, exceeded the FDIC insurance limit of $250,000. This represents a significant opportunity to cross-sell insured deposit solutions to our most valuable depositors.

The action here is creating tailored deposit products that solve this specific regulatory/risk concern for the client while retaining the relationship value for CF Bankshares Inc. We already offer Insured Cash Sweep (ICS) and CDARS, but we can develop a tiered, branded product suite around these services.

Finance: draft 13-week cash view by Friday.

CF Bankshares Inc. (CFBK) - Ansoff Matrix: Diversification

You're looking at the most aggressive growth quadrant here, moving into entirely new business lines in entirely new geographies. For CF Bankshares Inc., this means building out capabilities far beyond the five major metro markets they currently serve in Ohio and Indiana. Honestly, the current numbers show a bank with $2.11 billion in total assets as of September 30, 2025, and a net loan and lease portfolio of $1.73 billion. That's a solid base to launch from, especially with an Efficiency Ratio that improved to 49.8% in Q3 2025.

The diversification strategy hinges on creating revenue streams that aren't solely dependent on the current regional commercial lending focus. Here are the required components for this quadrant:

• Launch a FinTech-style lending division focused on national, niche commercial real estate segments outside the Midwest.
• Acquire a non-bank financial services firm (e.g., insurance brokerage) to offer new services in new states.
• Develop a national, high-yield digital savings product to attract low-cost core deposits from non-regional customers.
• Invest in a venture capital fund focused on Ohio/Midwest startups, diversifying revenue outside traditional lending.
• Enter the Texas or Florida markets with a new, specialized commercial real estate debt product.

The existing strategy already shows a move toward new products in existing markets, which is a good warm-up. During Q1 2025, CF Bankshares Inc. completed the sale of residential mortgage loan portfolios totaling $18.1 million, redeploying those funds into higher-yielding Commercial bank loan relationships. This signals a clear intent to contract Residential loans while expanding Commercial Bank loans, a shift that sets the stage for broader product/market moves. Also, Noninterest Bearing (NIB) deposit balances grew by $18 million, an increase of 7% during Q1 2025, showing success in attracting core deposits, which could be scaled nationally.

To understand the scale you'd be deploying this diversification strategy from, here's a quick look at the Q3 2025 snapshot:

For the FinTech-style lending division and the Texas/Florida entry, you'd be looking to build on the existing commercial real estate exposure. The Q3 2025 results noted that new Commercial Loan production year to date totaled $155 million, which was offset by payoffs from successful Commercial Real Estate development projects moving to permanent financing. This pipeline strength suggests existing expertise in CRE that could be ported nationally via a FinTech model.

The digital savings product targets low-cost core deposits. The fact that Core deposits increased by $20 million from June 30, 2025, shows deposit gathering momentum, which a national digital product could amplify significantly beyond the current regional base of Columbus, Cleveland, Cincinnati, Akron, and Indianapolis.

For the venture capital investment, it's about diversifying revenue outside traditional lending. The current Noninterest Income for Q4 2024 was not explicitly stated, but Q1 2025 Noninterest Income totaled $1.2 million, a decrease of $240,000 from the prior quarter, highlighting the current reliance on Net Interest Income. A VC fund investment would directly target this non-interest income diversification.

Here are the key operational metrics that define the current scope before these new market/product entries:

• Current primary markets: Columbus, Cleveland, Cincinnati, Akron (OH), and Indianapolis (IN).
• Q3 2025 Net Interest Margin (NIM) increased 35bps versus Q3 2024.
• Tier 1 Leverage ratio stood at 11.19% as of September 30, 2025.
• Total Capital ratio was 14.88% at the end of Q3 2025.