CF Bankshares Inc. (CFBK): BCG Matrix [Dec-2025 Updated]

You're looking for a clear-eyed view of CF Bankshares Inc. (CFBK) using the BCG Matrix, and honestly, the Q3 2025 data paints a very clear picture of their strategic pivot: the bank is aggressively feeding its Stars-Commercial Banking and CRE lending, which saw PPNR jump 33% year-over-year to $7.8 million-using the stable, low-cost funding from its Cash Cows like noninterest-bearing deposits. To make this happen, they are actively shrinking the Dogs in the residential mortgage portfolio, while making targeted investments in Question Marks like SBIC income, which grew 8.7%, to see if they can become the next big growth engine.

Background of CF Bankshares Inc. (CFBK)

You're looking at CF Bankshares Inc. (CFBK), which you should know is the holding company for CFBank, National Association, the actual bank doing the business. CFBank itself has history stretching back to 1892, though the current structure and focus are much more recent. The company's main office is in Columbus, Ohio, which is where they've been based.

The real pivot point for CF Bankshares Inc. happened in 2012 when the current leadership and Board recapitalized the firm during the financial crisis. They intentionally repositioned CFBank to be a full-service Commercial Bank model, which has clearly paid off; since that recapitalization, CFBank has achieved a Compound Annual Growth Rate (CAGR) of 25%. That's some serious growth for a regional player. The company also officially changed its name from Central Federal Corporation to CF Bankshares Inc. back in July 2020.

Operationally, CFBank isn't trying to be everywhere. They focus their efforts across five major Metro Markets: Columbus, Cleveland, Cincinnati, and Akron in Ohio, plus Indianapolis, Indiana, which they added in Q4 2021. Their primary target is serving the financial needs of closely held businesses and entrepreneurs in those regions. Honestly, they aim to match the sophistication of much larger banks without all the red tape.

What they offer is a comprehensive suite of services. This includes commercial loans and equipment leases, commercial and residential real estate loans, and treasury management depository services. On the retail side, they handle residential mortgage lending and general full-service commercial and retail banking products. You'll find they accept savings, retail and business checking accounts, and money market accounts, along with certificates of deposit.

To ground this in late 2025 reality, let's look at the Q3 2025 results ending September 30th. Net income for that quarter was $2.3 million, which translated to $0.36 per diluted common share, though that was impacted by a significant provision expense. Still, the Pre-provision, pre-tax net revenue (PPNR) was a solid $7.8 million, showing a 33% increase over Q3 2024. Furthermore, their efficiency ratio improved nicely to 49.8% from 55.3% the year prior, and the book value per share ticked up to $26.99 as of September 30, 2025. They also declared a common stock cash dividend of $0.08 per share on October 1, 2025.

CF Bankshares Inc. (CFBK) - BCG Matrix: Stars

The Star quadrant in the Boston Consulting Group Matrix represents business units with high market share in high-growth markets. For CF Bankshares Inc. (CFBK), the Commercial Banking and Commercial Real Estate (CRE) lending segment clearly fits this profile, being the core strategic focus for investment and growth.

This segment is characterized by significant activity and strong performance metrics as of the third quarter of 2025. The focus on scaling this area is evident in the production figures and revenue generation, indicating a high-growth area where CF Bankshares Inc. is a current leader.

Key financial and operational data supporting the Star classification for Commercial Banking and CRE lending:

The high growth rate consumes cash, which is typical for Stars, as the company must invest heavily to maintain and expand its leading position. The strong PPNR of $7.8 million in Q3 2025 shows the revenue-generating power of this segment, even before accounting for provisions.

CF Bankshares Inc. is actively scaling this segment, which is a leader in its geographic footprint. The bank operates primarily in Five (5) Major Metro Markets across Ohio and Indiana, which include Columbus, Cleveland, Cincinnati, Akron, and Indianapolis.

The strategy involves continued investment to sustain this market share, with expectations for acceleration:

• The company is focused on attracting high performing bankers from regional banks to Team CF.
• Commercial pipelines remain very strong as of Q3 2025.
• Management anticipates net Commercial Loan growth to accelerate by early 2026 as loan payoffs are expected to decline appreciably.

If CF Bankshares Inc. sustains this success until the high-growth market slows, this unit is positioned to transition into a Cash Cow.

CF Bankshares Inc. (CFBK) - BCG Matrix: Cash Cows

You're looking at the bedrock of CF Bankshares Inc.'s financial stability, the segment that generates the cash to fund everything else. These Cash Cows thrive on market leadership within a mature banking environment, which for CF Bankshares Inc. is largely its core deposit base. This base, especially the noninterest-bearing (NIB) deposits, acts as the primary, low-cost funding source for the higher-yielding commercial loans you see the company pushing.

The stability here is evident in the deposit flow. For instance, during the first quarter of 2025, the Noninterest-bearing deposit balances grew by $18 million, which represented a 7% increase for that quarter. That low-cost funding advantage is directly reflected in margin performance. You saw the Cost of funds declined by 58bps when compared to Q3 2024, a clear win that directly boosted the Net Interest Margin (NIM).

This segment's efficiency is what makes it a Cash Cow. Look at the operational leverage achieved by Q3 2025. The Efficiency Ratio improved to a strong 49.8% in Q3 2025, a significant step down from the 55.3% recorded in Q3 2024. That's defintely the result of managing a mature, high-share business well.

Here's a quick look at how the margin and efficiency metrics stacked up as of the third quarter of 2025, showing the strength of this cash-generating unit:

The stability of the funding base is paramount for CF Bankshares Inc. You want to keep milking these reliable sources. The latest figures confirm this trend:

• Core deposits increased by $20 million in Q3 2025 compared to June 30, 2025.
• Noninterest-bearing deposit balances grew by $18 million (a 7% increase) in Q1 2025.
• The Net Interest Margin (NIM) reached 2.64% in Q1 2025, up 28bps from Q1 2024.
• Book value per share stood at $26.99 as of September 30, 2025.
• New Commercial Loan production year-to-date through Q3 2025 totaled $155 million.

The management focus here is clearly on maintenance and efficiency improvement, not heavy promotion. Investments into supporting infrastructure, like the technology and people mentioned in their materials, are aimed at improving that 49.8% efficiency ratio further, thereby increasing the cash flow extracted from this high-share, low-growth segment. Finance: review the Q4 2025 forecast for NIB deposit stability by end of month.

CF Bankshares Inc. (CFBK) - BCG Matrix: Dogs

You're looking at the business units CF Bankshares Inc. (CFBK) is actively managing down, which fit the classic definition of Dogs: low market share in a low-growth segment, tying up capital that could be better used elsewhere. For CF Bankshares Inc., this category is clearly occupied by portions of its Residential Mortgage portfolio loans held for investment.

The strategic plan here is direct: reduce the lower-rate Residential Mortgage portfolio loans to free up capital to fund commercial growth. Honestly, this is a textbook move when a segment isn't driving the desired returns. This segment is viewed as a drag on capital and is being actively divested to improve the overall loan mix and profitability profile of CF Bankshares Inc.

The actions taken in the first quarter of 2025 clearly demonstrate this intent. You can see the execution in the numbers:

• The Residential Mortgage portfolio loans held for investment are being intentionally shrunk.
• The strategic plan involves reducing lower-rate residential mortgage portfolio loans to fund commercial growth.
• CF Bankshares Inc. completed the sale of two residential mortgage loan portfolios totaling $18.1 million in Q1 2025.
• Single-family residential loan balances decreased by $23.9 million in Q1 2025, showing portfolio contraction.
• This segment is a drag on capital and is being actively divested to improve loan mix and profitability.

Here's a quick look at the tangible impact of this divestiture strategy during the first quarter of 2025, which is when the most significant portfolio contraction was reported:

The proceeds from these sales, amounting to $18.1 million, were redeployed into higher-yielding Commercial banking loan relationships. This aligns with the broader strategy to bolster the Commercial Bank franchise, which saw over $50 million in net loan growth despite payoffs. Furthermore, the ongoing nature of realizing gains from this contraction is visible later in the year; for the three months ended September 30, 2025, there was a $99,000 increase in gain on sales of residential mortgage loans compared to the prior year period, suggesting continued pruning or realization of gains from prior sales. These are units you want to manage out, not invest more in; the focus is on minimizing exposure and maximizing the capital return to deploy into the Stars or Cash Cows, which for CF Bankshares Inc. is the Commercial Bank segment.

CF Bankshares Inc. (CFBK) - BCG Matrix: Question Marks

The Question Marks quadrant for CF Bankshares Inc. (CFBK) centers on business segments exhibiting high growth potential but currently holding a relatively low market share, demanding significant cash investment to capture that growth. For CF Bankshares Inc. (CFBK), this positioning is most evident in its Small Business Investment Company (SBIC) investments and other noninterest income streams, alongside strategic geographic expansion bets.

The performance of these noninterest income components demonstrates the high-growth nature of this segment. Noninterest income for the three months ended September 30, 2025, totaled $1.7 million, which represented an increase of 8.7% compared to the prior quarter. This growth trajectory signals a market that is expanding or where CF Bankshares Inc. (CFBK) is beginning to gain traction, fitting the Question Mark profile.

The primary driver for this growth was a $133,000 rise in income derived specifically from SBIC investments during the third quarter of 2025. While this segment is small relative to the core lending business, its high-percentage growth warrants heavy investment to attempt to convert it into a Star. The company needs to quickly increase the market share captured by these investments or risk them becoming Dogs.

The financial contribution of key noninterest income items for the third quarter of 2025 highlights the relative size and growth of the SBIC component:

The marketing strategy to get markets to adopt these newer, high-growth areas is mirrored in CF Bankshares Inc. (CFBK)'s personnel strategy. The company is making a bet on future market share by investing in regional leadership. Specifically, CF Bankshares Inc. (CFBK) announced the addition of Matt Tuohey as Market President for Northeast Ohio (Greater Cleveland) on May 5, 2025.

This strategic move is designed to expand commercial banking presence and deepen partnerships in a new, high-potential market. CF Bankshares Inc. (CFBK) operates in five Metro Regional Markets, including Columbus, Cleveland, Cincinnati, Akron, Ohio, and Indianapolis, Indiana. The hiring of an experienced leader like Tuohey, who brings over 30 years of experience, is the investment required to quickly build market share in that specific geography.

The Question Mark category requires decisive action regarding resource allocation. The investment thesis here rests on the potential for these areas to generate significant returns:

• SBIC Investments: High growth potential indicated by a $133,000 income increase in Q3 2025.
• Northeast Ohio Expansion: Investment in a new Market President to capture share in the Greater Cleveland area.
• Goal: Increase market share quickly to transition from a cash-consuming Question Mark to a Star.