CF Bankshares Inc. (CFBK): Business Model Canvas [Dec-2025 Updated]

You're digging into the actual mechanics of CF Bankshares Inc. (CFBK)'s pivot to a boutique commercial lender, and honestly, the numbers from late 2025 tell a clear story. We've broken down their entire operation using the Business Model Canvas, revealing how they manage $2.11 billion in assets while hitting a 11.19% Tier 1 Leverage ratio, all while expanding their Net Interest Margin by 35bps. Still, the $5.1 million provision for credit losses in Q3 shows the near-term risk in this strategy, so let's look at the nine blocks that define exactly how CF Bankshares Inc. (CFBK) is playing the commercial game right now.

CF Bankshares Inc. (CFBK) - Canvas Business Model: Key Partnerships

You're looking at the partnerships that make the CF Bankshares Inc. model work, especially as they shift focus from residential to commercial lending. These relationships are critical for liquidity, origination flow, and technology backbone.

Correspondent banks for interbank services and liquidity management.

CF Bankshares Inc. maintains relationships with other financial institutions to manage liquidity and interbank services, which is standard for a bank of its size. While specific correspondent bank names aren't public in the latest filings, the balance sheet activity shows reliance on these channels. For instance, at March 31, 2025, FHLB advances and other debt totaled $92.7 million, indicating a reliance on wholesale funding sources, which often involve correspondent or Federal Home Loan Bank relationships for contingent liquidity. The strategic redeployment of loan proceeds also suggests active partnerships in the secondary market for balance sheet management.

Financial institutions buying residential mortgage loan portfolios (e.g., $18.1 million sold in Q1 2025).

CF Bankshares Inc. actively partners with institutions willing to purchase loan assets to align the balance sheet with its commercial growth strategy. This is a clear, quantifiable partnership activity.

• During the first quarter of 2025, CF Bankshares Inc. completed the sale of two portfolios of residential mortgage loans totaling $18.1 million.
• This action is consistent with the strategy of contracting Residential loans while expanding Commercial Bank loans and relationships.
• The proceeds from these sales were redeployed into higher-yielding Commercial banking loan relationships.

Technology vendors for digital banking and treasury management platforms.

The ability of CF Bankshares Inc. to offer sophisticated services without the bureaucracy of larger banks depends on its technology partners. These vendors provide the operational foundation for their service delivery.

These vendors help CF Bankshares Inc. deliver services like remote deposit capture.

Commercial real estate developers for loan origination and project financing.

The focus on commercial lending necessitates deep, working relationships with developers. CF Bankshares Inc. explicitly notes its core competency in Construction Lending, which is built on these developer relationships. The results show this strategy is active:

• Commercial real estate loan balances increased by $47.7 million in the first quarter of 2025.
• New Commercial Loan production totaled $155 million year to date as of September 30, 2025.
• These originations often come from successful Commercial Real Estate development projects moving to stabilization into permanent loans.

The hiring of Matt Tuohey in April 2025 as Market President for Northeast Ohio, bringing over 30 years of commercial banking experience, is a direct investment in strengthening these origination partnerships in a key metro market.

Local community organizations for brand visibility and deposit gathering.

CF Bankshares Inc. leverages its community presence in its five major metro-markets (Columbus, Cleveland, Cincinnati, Akron, and Indianapolis) through local engagement. These relationships support deposit gathering, which is vital for funding loan growth.

The strength of these local ties is evidenced by the growth in core deposits. Noninterest bearing (NIB) deposit balances grew by $18 million, an increase of 7% during the first quarter of 2025. Furthermore, Community Housing Network, a local organization, publicly stated that CFBank is a 'true partner,' highlighting the qualitative value of these community relationships in their operating footprint.

CF Bankshares Inc. (CFBK) - Canvas Business Model: Key Activities

You're focused on the core actions CF Bankshares Inc. (CFBK) is taking right now to drive its business forward, based on their late 2025 positioning. Honestly, the key activities center on shifting the balance sheet toward higher-yielding commercial assets while keeping the operational engine tight and the capital base rock solid. Here's the quick math on what they're actively doing.

Commercial loan origination and portfolio management is about aggressively replacing lower-yielding assets with commercial production. They reported new commercial loan production totaling $155 million year-to-date as of Q3 2025, which is a direct result of their strategy to contract the residential mortgage portfolio. To be fair, this production volume has been necessary to offset considerable loan payoffs, mostly from successful Commercial Real Estate development projects moving to permanent financing. The total Net Loans and Leases stood at $1.73 billion on September 30, 2025, contributing to total assets of $2.11 billion.

The push for scaling the Commercial Bank and improving the loan/customer mix is evident in their asset management. They are executing a strategy of contracting Residential loans while expanding Commercial Bank loans and relationships. For instance, in Q1 2025, CF Bankshares Inc. completed the sale of residential mortgage loan portfolios totaling $18.1 million, immediately redeploying those proceeds. This focus supports their anticipation that net commercial loan growth will accelerate and return to historical double-digit growth rates by the beginning of 2026. Furthermore, core deposits grew by $20 million when compared to June 30, 2025, showing success in attracting stable funding for this growth.

Active management of Net Interest Margin (NIM) shows direct results from their asset/liability strategy. The NIM expanded by 35bps when compared to Q3 2024, landing at 2.76% for the quarter ended September 30, 2025. This margin improvement was supported by a decline in the cost of funds, which fell by 58bps compared to Q3 2024. Net interest income for the quarter was $13.8 million, up 20.3% from $11.5 million in Q3 2024. Still, the NIM actually decreased by 7bps compared to the prior quarter (Q2 2025), driven by a decline in loan prepayment and late fee income.

Recruiting experienced talent is a key resource activity supporting the commercial scaling. In April 2025, Matt Tuohey joined CF Bankshares Inc. as Market President for the Northeast Ohio region, bringing over 30 years of experience in commercial banking and executive leadership. This move signals a commitment to bringing in seasoned leaders with deep regional connections to build out their presence in markets like Columbus, Cleveland, Cincinnati, Akron Ohio, and Indianapolis, Indiana.

Maintaining regulatory compliance and strong capital ratios is non-negotiable for this boutique commercial bank. Their capital position remains strong, which is critical for supporting loan growth. You can see the strength in the latest reported ratios as of September 30, 2025. Also, operational efficiency improved significantly, with the Efficiency Ratio moving to 49.8% in Q3 2025 from 55.3% in Q3 2024. Credit quality metrics also improved sequentially:

Here are the key financial and operational metrics from the Q3 2025 report:

The focus on credit quality is another key activity underpinning their stability:

• Nonaccrual loans declined 40% when compared to June 30, 2025.
• Total delinquencies declined 63% when compared to June 30, 2025.
• Allowance for Credit Losses on loans and leases was $16.8 million at September 30, 2025.
• Pre-provision, pre-tax net revenue (PPNR) was $7.8 million, a 33% increase over Q3 2024.

Finance: draft the projected capital requirements impact for Q4 2025 by next Tuesday.

CF Bankshares Inc. (CFBK) - Canvas Business Model: Key Resources

You're looking at the hard assets and foundational strengths CF Bankshares Inc. (CFBK) relies on to execute its business. These aren't just line items; they're the actual capacity underpinning their operations as of late 2025.

The balance sheet strength is clear. As of September 30, 2025, CF Bankshares Inc. reported total assets valued at $2.11 billion. That's a solid base for a regional player, showing growth from the prior year.

Capital adequacy is another key resource they highlight. CFBank's capital position remains strong, evidenced by a Tier 1 Leverage ratio of 11.19% for the third quarter of 2025. This ratio tells you how much capital they have relative to their assets, and that number suggests a comfortable buffer.

The funding side shows momentum too. The core deposit base, which is the lifeblood for any bank, increased by $20 million in Q3 2025 when compared to June 30, 2025. Also, new Commercial Loan production year to date reached $155 million, helping offset payoffs from stabilized real estate projects.

Here's a quick look at some of those core financial resources as of that September 30, 2025 snapshot:

You can't run a modern bank without the right people and tech. CF Bankshares Inc. relies on its experienced regional market leadership and banking teams, which have deep ties to the communities they serve in southern Kansas, focusing on local businesses, farmers, and ranchers. That local knowledge is definitely a resource.

On the technology side, the bank provides a full suite of digital banking platforms. This means clients have access to online and mobile banking, which includes features like electronic payments and remote deposit capture. It's about making sure their service delivery matches the expectations of today's business owners and households.

The key elements of their resource base include:

• Experienced regional market leadership and banking teams.
• A core deposit base that grew by $20 million in Q3 2025.
• Digital banking platforms for online and mobile access.
• $2.11 billion in Total Assets as of September 30, 2025.
• A strong capital base with a Tier 1 Leverage ratio of 11.19% in Q3 2025.

CF Bankshares Inc. (CFBK) - Canvas Business Model: Value Propositions

You're focused on growing your closely held business, and you need a bank that understands your specific needs, not one that treats you like a number in a massive portfolio. That's the core of what CF Bankshares Inc. offers.

Boutique commercial bank model for closely held businesses and entrepreneurs.

CF Bankshares Inc., through CFBank, positions itself as a nationally chartered boutique Commercial bank, a structure that allows it to focus intensely on the financial needs of closely held businesses and entrepreneurs. This strategy has driven significant growth; since the 2012 recapitalization, CFBank has achieved a Compound Annual Growth Rate (CAGR) in excess of 20%. This focus is operationalized by serving clients across Five (5) Major Metro Markets: Columbus, Cleveland, Cincinnati, and Akron Ohio, and Indianapolis, Indiana.

Direct customer access to decision-makers, avoiding big bank bureaucracy.

The value here is speed and relevance. CFBank differentiates itself with a 'penchant for individualized service coupled with direct customer access to decision-makers, and ease of doing business.' This isn't just talk; the operational efficiency supports this claim. The Efficiency Ratio improved to 49.8% in the third quarter of 2025, showing management is keeping a tight rein on costs while serving clients.

Comprehensive commercial lending: real estate, equipment leases, and C&I loans.

You get the full suite of commercial tools, but delivered with a local, specialized touch. CFBank provides commercial loans, equipment leases, commercial and residential real estate loans, and treasury management depository services. The commitment to this strategy is evident in the production numbers. New Commercial Loan production totaled $155 million year to date as of September 30, 2025, even while offsetting considerable loan payoffs from successful real estate projects moving to permanent financing. This focus on commercial growth is intentional, as the company has been actively redeploying proceeds from residential mortgage loan sales into higher-yielding Commercial and Business loan relationships.

Personalized service that matches the sophistication of much larger banks.

The goal is to deliver the capability of a much larger institution without the associated red tape. CFBank explicitly states it 'matches the sophistication of much larger banks, without the bureaucracy.' This sophistication is reflected in the balance sheet strength and profitability metrics. For instance, the Book value per share increased to $26.99 as of September 30, 2025. Furthermore, Pre-provision, pre-tax net revenue (PPNR) for Q3 2025 hit $7.8 million, a 33% increase over Q3 2024, showing the commercial focus is driving top-line results.

Strong credit quality with nonaccrual loans declining 40% in Q3 2025.

When you are lending to closely held businesses, credit quality is the ultimate test of underwriting discipline. CFBank showed significant improvement in this area heading into the end of 2025. Nonaccrual loans declined 40% when compared to June 30, 2025. This rapid cleanup of credit issues is a major value point, signaling a conservative credit culture in action. Here's the quick math on the credit quality metrics as of September 30, 2025:

The management team noted that the core earnings remain solid, even with a Q3 2025 Net Income of $2.3 million, which was impacted by a significant provision expense. The underlying health is what matters, and the NPA ratio of 0.57% is a concrete measure of that health.

The immediate next step for you is to review the specific loan officer team structure in the Cincinnati market, as that is where CFBank is actively recruiting experienced talent to deepen its presence. Finance: draft 13-week cash view by Friday.

CF Bankshares Inc. (CFBK) - Canvas Business Model: Customer Relationships

CF Bankshares Inc. positions its customer relationships around serving the financial needs of closely held businesses and entrepreneurs, complemented by retail and mortgage lending services. The bank is a nationally chartered boutique Commercial bank operating primarily in Five (5) Major Metro Markets: Columbus, Cleveland, Cincinnati, and Akron Ohio, and Indianapolis, Indiana.

Dedicated relationship managers for commercial clients are implied through strategic team expansion aimed at scaling the Commercial Bank. The company actively strengthens its Regional Market Leadership by adding proven top performers to its Commercial & Retail Banking teams. For instance, in April 2025, Matt Tuohey joined CFBank as Market President for the Northeast Ohio region, bringing over 30 years of experience in commercial banking and executive leadership. This focus supports the strategic objective of expanding Commercial Bank loans and relationships.

The high-touch, individualized service model is a key differentiator for CF Bankshares Inc., coupled with direct customer access to decision-makers and ease of doing business. This approach is designed to match the sophistication of much larger banks without the bureaucracy. The commitment to commercial growth is evident in the year-to-date New Commercial Loan production, which totaled $155 million as of Q3 2025.

The community-oriented banking approach in regional markets is supported by specific local programs. CF Bankshares Inc. continues to donate to various charities in Franklin, Hamilton, and Summit counties in Ohio. Furthermore, the bank partners with Banzai to provide financial literacy education to students across Ohio. For Columbus City Residents, CFBank offers the American Dream Downpayment Initiative, providing up to $14,000 toward the downpayment for low and middle-income first-time home buyers in the City of Columbus, Ohio.

For transactional service for retail and mortgage lending products, the bank has an explicit strategy of contracting the Residential loan portfolio while expanding Commercial Bank relationships. This strategy was executed through the sale of two portfolios of residential mortgage loans totaling $18.1 million during Q1 2025, with proceeds redeployed into higher-yielding Commercial banking loan relationships.

Proactive communication on credit quality and market trends is demonstrated through regular reporting of core asset metrics. The Credit Quality Metrics of the Customer Loan Portfolio were reported as sound at September 30, 2025. The bank reported that:

• Loan delinquencies were 0.32% of total loans as of September 30, 2025.
• Nonperforming Assets (NPAs) stood at 0.57% of total loans as of September 30, 2025.
• Loans 30 days or more past due totaled $5.6 million at September 30, 2025.
• Nonaccrual loans declined 40% when compared to June 30, 2025.

The Efficiency Ratio improved to 49.8% for Q3 2025, compared to 55.3% for Q3 2024.

CF Bankshares Inc. (CFBK) - Canvas Business Model: Channels

CF Bankshares Inc. (CFBK) uses a multi-pronged approach to reach and serve its customer segments, focusing on both physical presence and digital capabilities, especially for its core commercial clientele.

Full-service branch network in five major metro markets (Columbus, Cleveland, Cincinnati, Akron, Indianapolis).

CFBank maintains a physical footprint across key Ohio and Indiana markets. The bank is headquartered in Columbus, Ohio, and its operations span five major metro-markets.

• Markets served: Columbus, Cleveland, Cincinnati, Akron, and Indianapolis.
• Indianapolis market entry was completed as of Q4 2021.
• The Columbus Main office offers lobby hours Monday through Friday, 9AM - 5PM, with a walk-In ATM available until 6PM on weekdays.

Direct sales force of experienced commercial bankers.

The bank emphasizes direct customer access to decision-makers, which is a key differentiator. This relationship-driven channel supports significant commercial activity.

• New Commercial Loan production year to date (YTD) for the nine months ended September 30, 2025, totaled $155 million.
• The bank strategically redeployed proceeds from residential loan sales into higher-yielding Commercial banking loan relationships.
• The Northeast Ohio region added Matt Tuohey as Market President in April 2025, bringing over 30 years of commercial banking experience to expand the presence there.

Online and mobile banking platforms for digital transactions.

Digital channels support both personal and business banking needs, facilitating convenience alongside the physical branches. Noninterest bearing (NIB) deposit balances show the usage of these transactional channels.

• Digital offerings include Online Banking, Mobile Banking, Billpay, eStatements, and Remote Deposit Capture.
• NIB deposit balances grew by $18 million, an increase of 7%, during the first quarter of 2025 (ended March 31, 2025).
• Core deposits increased by $20 million when compared to June 30, 2025, as of September 30, 2025.

Treasury management services for business clients.

Treasury Management depository services are provided to business clients, aligning with the focus on closely held businesses and entrepreneurs. Growth in fee income is a relevant indicator for these service-based revenue streams.

The growth in Customer Fees, which includes Cash Management products and services, was 60% for the Full Year 2024 when compared to 2023. Noninterest income for Q3 2025 totaled $1.7 million.

Here's a quick look at some key 2025 financial metrics relevant to channel performance:

The efficiency ratio improved to 49.8% for Q3 2025, compared to 55.3% for Q3 2024. Finance: draft 13-week cash view by Friday.

CF Bankshares Inc. (CFBK) - Canvas Business Model: Customer Segments

CF Bankshares Inc. focuses its commercial banking efforts on serving the financial needs of closely held businesses and entrepreneurs. This is the primary target for CFBank's lending and treasury management services across its operating footprint. The strategic shift is clear: shrinking the Residential portfolio while expanding the Commercial Bank relationships. New Commercial Loan production year to date through September 30, 2025, totaled $155 million.

The Commercial Real Estate (CRE) developers and investors segment is a significant part of the lending activity. This segment is characterized by substantial loan activity, with new production often offset by payoffs as projects move to stabilization. During the first nine months of 2025, considerable loan payoffs were noted, primarily from successful Commercial Real Estate development projects refinancing into permanent loans.

Retail customers are served across the bank's established metro markets in Ohio and Indiana. The bank provides full-service commercial and retail banking services and products in these areas. Deposit data gives a sense of the retail/commercial mix. At September 30, 2025, approximately 29.7% of total deposit balances exceeded the FDIC insurance limit of $250,000. Core deposits increased by $20 million when compared to June 30, 2025.

The bank operates in five major metro markets, which define the geographic scope for all customer segments: Columbus, Cleveland, Cincinnati, and Akron in Ohio, and Indianapolis, Indiana. The bank is actively recruiting experienced talent to deepen its presence in these regional markets for business development.

Agricultural clients represent a secondary segment in some of the markets CF Bankshares Inc. serves.

Here are key financial metrics as of late 2025 that frame the scale of the customer base:

The bank's service delivery model is designed to match the sophistication of larger institutions without the associated bureaucracy, offering direct customer access to decision-makers. This approach supports the primary commercial focus.

Key characteristics of the deposit base as of Q3 2025 include:

• Core deposits increased $20 million from the prior quarter.
• 29.7% of deposit balances exceeded the $250,000 FDIC limit.
• Noninterest-bearing balances decreased $18.7 million from June 30, 2025.
• Noninterest-bearing balances increased $18.9 million from December 31, 2024.

The strategic redeployment of proceeds from Residential Mortgage Loan sales into Commercial banking relationships directly impacts the composition of the customer segments served. The focus is on growing the Commercial Bank.

CF Bankshares Inc. (CFBK) - Canvas Business Model: Cost Structure

You're looking at the core expenses driving CF Bankshares Inc.'s operations as of late 2025. For a bank, the cost structure is heavily weighted toward funding its assets and managing its operational footprint.

The cost of funds, which is essentially the interest paid on deposits and borrowings, showed positive movement in the third quarter of 2025. Specifically, the cost of funds declined 58bps when compared to the third quarter of 2024. This efficiency in funding is a key lever for profitability.

A significant, non-operating cost that directly impacts the bottom line is the allocation for potential loan losses. For the quarter ended September 30, 2025, CF Bankshares Inc. recorded a Provision for Credit Losses of $5.1 million. This compares to $1.4 million for the quarter ended June 30, 2025, showing a substantial increase in the provision expense for Q3 2025.

Operational efficiency is tracked closely, and the firm made progress here. The Efficiency Ratio improved to 49.8% in Q3 2025, which is a notable step down from the 55.3% reported for Q3 2024. This ratio reflects how much it costs to generate a dollar of revenue.

The total Noninterest Expense for the quarter ending September 30, 2025, was reported at $7.7 million. This was a slight decrease of $28,000, or 0.4%, compared to the prior quarter's $7.8 million.

Compensation is a core component of noninterest expense, reflecting the investment in experienced banking teams. The increase in noninterest expense compared to the third quarter of 2024 was largely driven by personnel costs. Here's a breakdown of the primary drivers for the year-over-year change in noninterest expense:

• Salaries and employee benefits increased by $261,000.
• Professional fee expense increased by $174,000.

While specific line items for technology and data processing costs aren't broken out separately in the top-level summary, the overall focus on an efficient cost structure and the mention of providing a full suite of digital banking platforms suggest ongoing investment in technology to support operations and client access, like online and mobile account access and remote deposit capture.

Here are the key cost-related figures for CF Bankshares Inc. for the third quarter of 2025:

Finance: draft 13-week cash view by Friday.

CF Bankshares Inc. (CFBK) - Canvas Business Model: Revenue Streams

The revenue streams for CF Bankshares Inc. (CFBK) are fundamentally driven by traditional commercial banking activities, centered on interest earned from its loan portfolio and supplemented by noninterest fee income.

Net Interest Income (NII) remains the primary component. For the three months ended September 30, 2025, CF Bankshares Inc. reported Net Interest Income totaling $13.8 million. This figure represented an increase of 20.3% compared to the $11.5 million reported for the third quarter of 2024.

The core of the interest income generation is the loan and lease portfolio. As of September 30, 2025, Net Loans and Leases for CF Bankshares Inc. stood at $1.73 billion. The bank's strategy emphasizes expanding its Commercial Bank loans while contracting Residential loans. New Commercial Loan production totaled $155 million year to date as of Q3 2025.

The revenue breakdown for the third quarter of 2025 highlights these two main pillars:

Noninterest Income contributed $1.7 million for the three months ended September 30, 2025. This stream is sourced from various fee-based services that CFBank provides to its commercial and retail clients. These fee-based revenue sources include:

• Service charges on deposit accounts.
• Treasury management fees.
• Income from Small Business Investment Company (SBIC) investments, which saw an increase of $133,000 in Q3 2025 over the prior quarter.
• Gains on sale of residential mortgage loans. CF Bankshares Inc. completed the sale of two residential mortgage loan portfolios totaling $18.1 million during the first quarter of 2025.

You should note that the increase in Noninterest Income in Q3 2025 was primarily due to the $133,000 rise in SBIC investment income. Finance: draft 13-week cash view by Friday.