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of Contents](#toc_page)\n\n \n\n \n\n \n\nUNITED STATES\n\nSECURITIES AND EXCHANGE COMMISSION\n\nWASHINGTON, DC 20549\n\n \n\n \n\nFORM 10-Q\n\n \n\n \n\n(Mark One)\n\n☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934\n\nFor the quarterly period ended March 31, 2026\n\nOR\n\n \n\n☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934\n\nFor the transition period from _________________to ________________\n\nCommission File Number: 0-25045\n\n \n\n \n\nCF BANKSHARES INC.\n\n(Exact Name of Registrant as Specified in its Charter)\n\n \n\n \n\nDelaware\n\n34-1877137\n\n( State or other jurisdiction of\n\nincorporation or organization)\n\n(I.R.S. Employer\nIdentification No.)\n\n4960 E. Dublin Granville Road\n\nSuite #400\n\nColumbus, OH\n\n43081\n\n(Address of principal executive offices)\n\n(Zip Code)\n\nRegistrant’s telephone number, including area code: (614) 334-7979\n\n \n\n \n\nSecurities registered pursuant to Section 12(b) of the Act:\n\n \n\nTitle of each class\n\n \n\nTrading\n\nSymbol(s)\n\n \n\nName of each exchange on which registered\n\n(Voting) Common Stock, $.01 par value\n\n \n\nCFBK\n\n \n\nThe NASDAQ Capital Market\n\nIndicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐\n\nIndicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐\n\nIndicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.\n\n \n\nLarge accelerated filer\n\n☐\n\n \n\nAccelerated filer\n\n☒\n\nNon-accelerated filer\n\n☐\n\n \n\nSmaller reporting company\n\n☒\n\nEmerging growth company\n\n \n\n☐\n\n \n\n \n\n \n\n \n\n \n\nIf an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐\n\nIndicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒\n\nAs of May 7, 2026, there were 6,421,414 shares of the registrant’s (Voting) Common Stock outstanding and 76,700 shares of the registrant’s Non-Voting Common Stock outstanding.\n\n \n\n \n\n[Table of Contents](#toc_page)\n\n \n\n \n\nCF BANKSHARES INC.\n\n \n\nINDEX\n\n \n\n \n\n \n\n \n\n \n\nPage\n\n[PART I.](#financial_information)\n\n \n\n[Financial Information](#financial_information)\n\n \n\n2\n\n \n\n \n\n \n\n \n\n \n\n[Item 1.](#item_1_financial_statements)\n\n \n\n[Financial Statements](#item_1_financial_statements)\n\n \n\n2\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n[Consolidated Balance Sheets as of March 31, 2026 (unaudited) and December 31, 2025](#consolidated_balance_sheets)\n\n \n\n2\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n[Consolidated Statements of Income for the three months ended March 31, 2026 and 2025 (unaudited)](#consolidated_statements_of_income)\n\n \n\n3\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n[Consolidated Statements of Comprehensive Income for the three months ended March 31, 2026 and 2025 (unaudited)](#stmnt_comprehensive_income)\n\n \n\n4\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n[Consolidated Statements of Changes in Stockholders’ Equity for the three months ended March 31, 2026 and 2025 (unaudited)](#stockholders_equity)\n\n \n\n5\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n[Consolidated Statements of Cash Flows for the three months ended March 31, 2026 and 2025 (unaudited)](#consolidated_statements_of_cash_flows)\n\n \n\n6\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n[Notes to Consolidated Financial Statements (unaudited))](#financial_statements_unaudited)\n\n \n\n8\n\n \n\n \n\n \n\n \n\n \n\n[Item 2.](#item_2)\n\n \n\n[Management’s Discussion and Analysis of Financial Condition and Results of Operations](#item_2)\n\n \n\n36\n\n \n\n \n\n \n\n \n\n \n\n[Item 3.](#quantitative_and_qualitative)\n\n \n\n[Quantitative and Qualitative Disclosures About Market Risk](#quantitative_and_qualitative)\n\n \n\n46\n\n \n\n \n\n \n\n \n\n \n\n[Item 4.](#controls_and_procedures)\n\n \n\n[Controls and Procedures](#controls_and_procedures)\n\n \n\n47\n\n \n\n \n\n \n\n \n\n \n\n[PART II.](#other_information)\n\n \n\n[Other Information](#other_information)\n\n \n\n48\n\n \n\n \n\n \n\n \n\n \n\n[Item 1.](#legalproceedings)\n\n \n\n[Legal Proceedings](#legalproceedings)\n\n \n\n48\n\n \n\n \n\n \n\n \n\n \n\n[Item 1A.](#riskfactors)\n\n \n\n[Risk Factors](#riskfactors)\n\n \n\n48\n\n \n\n \n\n \n\n \n\n \n\n[Item 2.](#unregisteredsales)\n\n \n\n[Unregistered Sales of Equity Securities and Use of Proceeds](#unregisteredsales)\n\n \n\n48\n\n \n\n \n\n \n\n \n\n \n\n[Item 3.](#defaultuponsecurities)\n\n \n\n[Defaults Upon Senior Securities](#defaultuponsecurities)\n\n \n\n48\n\n \n\n \n\n \n\n \n\n \n\n[Item 4.](#minesafetydisclosures)\n\n \n\n[Mine Safety Disclosures](#minesafetydisclosures)\n\n \n\n48\n\n \n\n \n\n \n\n \n\n \n\n[Item 5.](#otherinformation)\n\n \n\n[Other Information](#otherinformation)\n\n \n\n48\n\n \n\n \n\n \n\n \n\n \n\n[Item 6.](#exhibits)\n\n \n\n[Exhibits](#exhibits)\n\n \n\n50\n\n \n\n \n\n \n\n \n\n \n\n[Signatures](#signatures)\n\n \n\n \n\n \n\n51\n\n \n\n \n\n[Table of Contents](#toc_page)\n\n \n\nCF BANKSHARES INC.\n\nCONSOLIDATED BALANCE SHEETS\n\n(Dollars in thousands except per share data)\n\n \n\n \n\nMarch 31,\n\n \n\n \n\nDecember 31,\n\n \n\n \n\n2026\n\n \n\n \n\n2025\n\n \n\n \n\n(unaudited)\n\n \n\n \n\n \n\n \n\nASSETS\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nCash and cash equivalents\n\n$\n\n \n\n267,759\n\n \n\n \n\n$\n\n \n\n258,972\n\n \n\nInterest-bearing deposits in other financial institutions\n\n \n\n \n\n100\n\n \n\n \n\n \n\n \n\n100\n\n \n\nSecurities available for sale\n\n \n\n \n\n17,395\n\n \n\n \n\n \n\n \n\n17,496\n\n \n\nLoans held for sale, at fair value\n\n \n\n \n\n3,634\n\n \n\n \n\n \n\n \n\n5,611\n\n \n\nLoans and leases, net of allowance for credit losses of $18,641 and $17,678, respectively\n\n \n\n \n\n1,761,262\n\n \n\n \n\n \n\n \n\n1,738,854\n\n \n\nFHLB and FRB stock\n\n \n\n \n\n8,364\n\n \n\n \n\n \n\n \n\n8,354\n\n \n\nPremises and equipment, net\n\n \n\n \n\n3,533\n\n \n\n \n\n \n\n \n\n3,547\n\n \n\nOperating lease right-of-use assets\n\n \n\n \n\n5,859\n\n \n\n \n\n \n\n \n\n5,680\n\n \n\nBank owned life insurance\n\n \n\n \n\n28,294\n\n \n\n \n\n \n\n \n\n28,049\n\n \n\nAccrued interest receivable and other assets\n\n \n\n \n\n49,576\n\n \n\n \n\n \n\n \n\n50,658\n\n \n\nTotal assets\n\n$\n\n \n\n2,145,776\n\n \n\n \n\n$\n\n \n\n2,117,321\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nLIABILITIES AND STOCKHOLDERS' EQUITY\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nDeposits\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nNoninterest bearing\n\n$\n\n \n\n240,645\n\n \n\n \n\n$\n\n \n\n285,523\n\n \n\nInterest bearing\n\n \n\n \n\n1,568,797\n\n \n\n \n\n \n\n \n\n1,495,166\n\n \n\nTotal deposits\n\n \n\n \n\n1,809,442\n\n \n\n \n\n \n\n \n\n1,780,689\n\n \n\nFHLB advances and other debt\n\n \n\n \n\n100,973\n\n \n\n \n\n \n\n \n\n100,964\n\n \n\nAdvances by borrowers for taxes and insurance\n\n \n\n \n\n1,292\n\n \n\n \n\n \n\n \n\n2,523\n\n \n\nOperating lease liabilities\n\n \n\n \n\n6,071\n\n \n\n \n\n \n\n \n\n5,878\n\n \n\nAccrued interest payable and other liabilities\n\n \n\n \n\n23,995\n\n \n\n \n\n \n\n \n\n27,802\n\n \n\nSubordinated debentures\n\n \n\n \n\n15,048\n\n \n\n \n\n \n\n \n\n15,039\n\n \n\nTotal liabilities\n\n \n\n \n\n1,956,821\n\n \n\n \n\n \n\n \n\n1,932,895\n\n \n\nCommitments and contingent liabilities\n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n—\n\n \n\nStockholders' equity\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nCommon stock, $0.01 par value;\n   shares authorized: 9,090,909, including 1,260,700 shares of non-voting\n   common stock\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nVoting common stock, $0.01 par value; shares issued: 6,887,577 at March 31, 2026\n   and 6,800,762 at December 31, 2025\n\n \n\n \n\n69\n\n \n\n \n\n \n\n \n\n68\n\n \n\nNon-voting common stock, $0.01 par value;\n   shares issued: 76,700 at March 31, 2026 and December 31, 2025\n\n \n\n \n\n1\n\n \n\n \n\n \n\n \n\n1\n\n \n\nSeries D preferred stock, $0.01 par value; 5,000 shares authorized;\n   2,000 shares issued at March 31, 2026 and December 31, 2025\n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n—\n\n \n\nAdditional paid-in capital\n\n \n\n \n\n93,983\n\n \n\n \n\n \n\n \n\n93,618\n\n \n\nRetained earnings\n\n \n\n \n\n108,324\n\n \n\n \n\n \n\n \n\n103,883\n\n \n\nAccumulated other comprehensive loss\n\n \n\n \n\n(1,489\n\n)\n\n \n\n \n\n \n\n(1,371\n\n)\n\nTreasury stock, at cost; 464,660 shares of voting common stock at March 31, 2026\n   and 459,113 shares of voting common stock at December 31, 2025\n\n \n\n \n\n(11,933\n\n)\n\n \n\n \n\n \n\n(11,773\n\n)\n\nTotal stockholders' equity\n\n \n\n \n\n188,955\n\n \n\n \n\n \n\n \n\n184,426\n\n \n\nTotal liabilities and stockholders' equity\n\n$\n\n \n\n2,145,776\n\n \n\n \n\n$\n\n \n\n2,117,321\n\n \n\n \n\n \n\nSee accompanying notes to unaudited consolidated financial statements.\n\n2\n\n[Table of Contents](#toc_page)\n\n \n\nCF BANKSHARES INC.\n\nCONSOLIDATED STATEMENTS OF INCOME\n\n(Dollars in thousands except per share data)\n\n(Unaudited)\n\n \n\nThree months ended\n\n \n\nMarch 31,\n\n \n\n2026\n\n \n\n2025\n\nInterest and dividend income\n\n \n\n \n\n \n\n \n\n \n\nLoans and leases, including fees\n\n$\n\n25,809\n\n \n\n$\n\n26,815\n\nSecurities\n\n \n\n187\n\n \n\n \n\n139\n\nFHLB and FRB stock dividends\n\n \n\n142\n\n \n\n \n\n174\n\nFederal funds sold and other\n\n \n\n1,992\n\n \n\n \n\n2,072\n\n \n\n \n\n28,130\n\n \n\n \n\n29,200\n\nInterest expense\n\n \n\n \n\n \n\n \n\n \n\nDeposits\n\n \n\n13,484\n\n \n\n \n\n15,253\n\nFHLB advances and other debt\n\n \n\n1,026\n\n \n\n \n\n714\n\nSubordinated debentures\n\n \n\n300\n\n \n\n \n\n324\n\n \n\n \n\n14,810\n\n \n\n \n\n16,291\n\nNet interest income\n\n \n\n13,320\n\n \n\n \n\n12,909\n\nProvision for credit losses\n\n \n\n \n\n \n\n \n\n \n\nProvision for credit losses-loans\n\n \n\n979\n\n \n\n \n\n352\n\nProvision for (recovery of) credit losses-unfunded commitments\n\n \n\n(375)\n\n \n\n \n\n230\n\n \n\n \n\n604\n\n \n\n \n\n582\n\nNet interest income after provision for credit losses\n\n \n\n12,716\n\n \n\n \n\n12,327\n\nNoninterest income\n\n \n\n \n\n \n\n \n\n \n\nService charges on deposit accounts\n\n \n\n839\n\n \n\n \n\n667\n\nNet gains on sales of residential mortgage loans\n\n \n\n145\n\n \n\n \n\n114\n\nNet loss on sales of commercial loans\n\n \n\n—\n\n \n\n \n\n(18)\n\nNet loss on sale of equity security\n\n \n\n—\n\n \n\n \n\n(103)\n\nSwap fee income\n\n \n\n30\n\n \n\n \n\n—\n\nEarnings on bank owned life insurance\n\n \n\n245\n\n \n\n \n\n225\n\nOther\n\n \n\n228\n\n \n\n \n\n321\n\n \n\n \n\n1,487\n\n \n\n \n\n1,206\n\nNoninterest expense\n\n \n\n \n\n \n\n \n\n \n\nSalaries and employee benefits\n\n \n\n4,328\n\n \n\n \n\n4,183\n\nOccupancy and equipment\n\n \n\n427\n\n \n\n \n\n434\n\nData processing\n\n \n\n769\n\n \n\n \n\n674\n\nFranchise and other taxes\n\n \n\n386\n\n \n\n \n\n303\n\nProfessional fees\n\n \n\n819\n\n \n\n \n\n787\n\nDirector fees\n\n \n\n167\n\n \n\n \n\n177\n\nPostage, printing and supplies\n\n \n\n48\n\n \n\n \n\n49\n\nAdvertising and marketing\n\n \n\n336\n\n \n\n \n\n44\n\nTelephone\n\n \n\n45\n\n \n\n \n\n55\n\nLoan expenses\n\n \n\n198\n\n \n\n \n\n325\n\nForeclosed assets, net\n\n \n\n4\n\n \n\n \n\n1\n\nDepreciation\n\n \n\n123\n\n \n\n \n\n118\n\nFDIC premiums\n\n \n\n385\n\n \n\n \n\n546\n\nRegulatory assessment\n\n \n\n45\n\n \n\n \n\n65\n\nOther insurance\n\n \n\n50\n\n \n\n \n\n46\n\nOther\n\n \n\n181\n\n \n\n \n\n147\n\n \n\n \n\n8,311\n\n \n\n \n\n7,954\n\nIncome before incomes taxes\n\n \n\n5,892\n\n \n\n \n\n5,579\n\nIncome tax expense\n\n \n\n868\n\n \n\n \n\n1,149\n\nNet income\n\n$\n\n5,024\n\n \n\n$\n\n4,430\n\nEarnings allocated to participating securities (Series D preferred stock)\n\n \n\n(155)\n\n \n\n \n\n(136)\n\nNet income attributable to common stockholders\n\n$\n\n4,869\n\n \n\n$\n\n4,294\n\n \n\n \n\n \n\n \n\n \n\n \n\nEarnings per common share:\n\n \n\n \n\n \n\n \n\n \n\nBasic\n\n$\n\n0.77\n\n \n\n$\n\n0.68\n\nDiluted\n\n$\n\n0.77\n\n \n\n$\n\n0.68\n\n \n\n \n\nSee accompanying notes to unaudited consolidated financial statements.\n\n3\n\n[Table of Contents](#toc_page)\n\n \n\nCF BANKSHARES INC.\n\nCONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME\n\n(Dollars in thousands except per share data)\n\n(Unaudited)\n\n \n\n \n\nThree months ended\n\n \n\n \n\nMarch 31,\n\n \n\n \n\n2026\n\n \n\n \n\n2025\n\n \n\nNet income\n\n$\n\n \n\n5,024\n\n \n\n \n\n$\n\n \n\n4,430\n\n \n\nOther comprehensive income:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nUnrealized holding (losses) gains arising during the period\n   related to securities available for sale, net of tax of $32\n   and $20\n\n \n\n \n\n(118\n\n)\n\n \n\n \n\n \n\n78\n\n \n\nOther comprehensive income, net of tax\n\n \n\n \n\n(118\n\n)\n\n \n\n \n\n \n\n78\n\n \n\nComprehensive income\n\n$\n\n \n\n4,906\n\n \n\n \n\n$\n\n \n\n4,508\n\n \n\n \n\n \n\nSee accompanying notes to unaudited consolidated financial statements.\n\n4\n\n[Table of Contents](#toc_page)\n\n \n\n \n\nCF BANKSHARES INC.\n\nCONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY\n\n(Dollars in thousands except per share data)\n\n(Unaudited)\n\n \n\n \n\nThree months ended March 31, 2026\n\nVoting\nCommon\nStock\n\n \n\nNon-\nVoting\nCommon\nStock\n\n \n\nSeries D\nPreferred\nStock\n\n \n\nAdditional\nPaid-In\nCapital\n\n \n\nRetained\nEarnings\n\n \n\nAccumulated\nOther\nComprehensive\nLoss\n\n \n\nTreasury\nStock\n\n \n\nTotal\nStockholders'\nEquity\n\nBalance at January 1, 2026\n\n$\n\n68\n\n \n\n$\n\n1\n\n \n\n$\n\n—\n\n \n\n$\n\n93,618\n\n \n\n$\n\n103,883\n\n \n\n$\n\n(1,371)\n\n \n\n$\n\n(11,773)\n\n \n\n$\n\n184,426\n\nNet income\n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n5,024\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n5,024\n\nOther comprehensive loss\n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n(118)\n\n \n\n \n\n—\n\n \n\n \n\n(118)\n\nIssuance of 90,200 stock based incentive plan shares, net of forfeitures\n\n \n\n1\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n(1)\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\nRestricted stock expense, net of forfeitures\n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n366\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n366\n\nAcquisition of 5,547 treasury shares surrendered upon vesting of restricted stock for payment of taxes\n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n(160)\n\n \n\n \n\n(160)\n\nCash dividends declared on common stock ($0.09 per share)\n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n(565)\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n(565)\n\nCash dividends declared on Series D preferred Stock ($9.00 per share)\n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n(18)\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n(18)\n\nBalance at March 31, 2026\n\n$\n\n69\n\n \n\n$\n\n1\n\n \n\n$\n\n—\n\n \n\n$\n\n93,983\n\n \n\n$\n\n108,324\n\n \n\n$\n\n(1,489)\n\n \n\n$\n\n(11,933)\n\n \n\n$\n\n188,955\n\n \n\n \n\n \n\nThree months ended March 31, 2025\n\nVoting\nCommon\nStock\n\n \n\nNon-\nVoting\nCommon\nStock\n\n \n\nSeries D\nPreferred\nStock\n\n \n\nAdditional\nPaid-In\nCapital\n\n \n\nRetained\nEarnings\n\n \n\nAccumulated\nOther\nComprehensive\nLoss\n\n \n\nTreasury\nStock\n\n \n\nTotal\nStockholders'\nEquity\n\nBalance at January 1, 2025\n\n$\n\n55\n\n \n\n$\n\n13\n\n \n\n$\n\n—\n\n \n\n$\n\n92,225\n\n \n\n$\n\n88,290\n\n \n\n$\n\n(1,803)\n\n \n\n$\n\n(10,343)\n\n \n\n$\n\n168,437\n\nNet income\n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n4,430\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n4,430\n\nOther comprehensive income\n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n78\n\n \n\n \n\n—\n\n \n\n \n\n78\n\nIssuance of 79,425 stock based incentive plan shares, net of forfeitures\n\n \n\n1\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n(1)\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\nRestricted stock expense, net of forfeitures\n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n303\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n303\n\nAcquisition of 4,581 treasury shares surrendered upon vesting of restricted stock for payment of taxes\n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n(113)\n\n \n\n \n\n(113)\n\nCash dividends declared on common stock ($0.07 per share)\n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n(439)\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n(439)\n\nCash dividends declared on Series D preferred stock ($7.00 per share)\n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n(14)\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n(14)\n\nBalance at March 31, 2025\n\n$\n\n56\n\n \n\n$\n\n13\n\n \n\n$\n\n—\n\n \n\n$\n\n92,527\n\n \n\n$\n\n92,267\n\n \n\n$\n\n(1,725)\n\n \n\n$\n\n(10,456)\n\n \n\n$\n\n172,682\n\n \n\n \n\nSee accompanying notes to unaudited consolidated financial statements.\n\n5\n\n[Table of Contents](#toc_page)\n\n \n\nCF BANKSHARES INC.\n\nCONSOLIDATED STATEMENTS OF CASH FLOWS\n\n(Dollars in thousands, except per share data)\n\n(Unaudited)\n\n \n\n \n\nThree months ended March 31,\n\n \n\n \n\n2026\n\n \n\n \n\n2025\n\n \n\nNet Income\n\n$\n\n \n\n5,024\n\n \n\n \n\n$\n\n \n\n4,430\n\n \n\nAdjustments to reconcile net income to net cash from operating activities:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nProvision for credit losses\n\n \n\n \n\n604\n\n \n\n \n\n \n\n \n\n582\n\n \n\nDepreciation\n\n \n\n \n\n123\n\n \n\n \n\n \n\n \n\n118\n\n \n\nAccretion, net\n\n \n\n \n\n(588\n\n)\n\n \n\n \n\n \n\n(384\n\n)\n\nDeferred income tax benefit\n\n \n\n \n\n(246\n\n)\n\n \n\n \n\n \n\n(97\n\n)\n\nNet loss on sale of equity security\n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n103\n\n \n\nOriginations of loans held for sale\n\n \n\n \n\n(13,481\n\n)\n\n \n\n \n\n \n\n(9,173\n\n)\n\nProceeds from sale of loans held for sale\n\n \n\n \n\n15,430\n\n \n\n \n\n \n\n \n\n8,405\n\n \n\nNet gains on sales of residential mortgage loans\n\n \n\n \n\n(145\n\n)\n\n \n\n \n\n \n\n(114\n\n)\n\nNet losses on sales of commercial loans\n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n18\n\n \n\nEarnings on bank owned life insurance\n\n \n\n \n\n(245\n\n)\n\n \n\n \n\n \n\n(225\n\n)\n\nStock-based compensation expense\n\n \n\n \n\n366\n\n \n\n \n\n \n\n \n\n303\n\n \n\nNet change in:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nOperating lease right-of-use asset\n\n \n\n \n\n176\n\n \n\n \n\n \n\n \n\n162\n\n \n\nAccrued interest receivable and other assets\n\n \n\n \n\n1,304\n\n \n\n \n\n \n\n \n\n185\n\n \n\nOperating lease liability\n\n \n\n \n\n(162\n\n)\n\n \n\n \n\n \n\n(146\n\n)\n\nAccrued interest payable and other liabilities\n\n \n\n \n\n(3,431\n\n)\n\n \n\n \n\n \n\n(1,961\n\n)\n\nNet cash from operating activities\n\n \n\n \n\n4,729\n\n \n\n \n\n \n\n \n\n2,206\n\n \n\nCash flows used by investing activities:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nAvailable-for-sale securities:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nMaturities, prepayments and calls\n\n \n\n \n\n34\n\n \n\n \n\n \n\n \n\n—\n\n \n\nProceeds from the sale of equity security\n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n4,897\n\n \n\nLoan and lease originations and payments, net\n\n \n\n \n\n(21,688\n\n)\n\n \n\n \n\n \n\n(49,284\n\n)\n\nPurchase of loans and leases\n\n \n\n \n\n(1,003\n\n)\n\n \n\n \n\n \n\n—\n\n \n\nProceeds from the sale of loans\n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n20,441\n\n \n\nAdditions to premises and equipment\n\n \n\n \n\n(109\n\n)\n\n \n\n \n\n \n\n(54\n\n)\n\nRedemption (purchase) of FHLB and FRB stock\n\n \n\n \n\n(10\n\n)\n\n \n\n \n\n \n\n896\n\n \n\nOther adjustments\n\n \n\n \n\n55\n\n \n\n \n\n \n\n \n\n176\n\n \n\nNet cash used by investing activities\n\n \n\n \n\n(22,721\n\n)\n\n \n\n \n\n \n\n(22,928\n\n)\n\nCash flows from financing activities:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nNet change in deposits\n\n \n\n \n\n28,753\n\n \n\n \n\n \n\n \n\n27,894\n\n \n\nProceeds from FHLB advances and other debt\n\n \n\n \n\n50\n\n \n\n \n\n \n\n \n\n30\n\n \n\nRepayments on FHLB advances and other debt\n\n \n\n \n\n(50\n\n)\n\n \n\n \n\n \n\n(30\n\n)\n\nNet change in advances by borrowers for taxes and insurance\n\n \n\n \n\n(1,231\n\n)\n\n \n\n \n\n \n\n(892\n\n)\n\nCash dividends paid\n\n \n\n \n\n(583\n\n)\n\n \n\n \n\n \n\n(453\n\n)\n\nAcquisition of treasury shares surrendered upon vesting of restricted stock\n   for payment of taxes\n\n \n\n \n\n(160\n\n)\n\n \n\n \n\n \n\n(113\n\n)\n\nNet cash from financing activities\n\n \n\n \n\n26,779\n\n \n\n \n\n \n\n \n\n26,436\n\n \n\nNet change in cash and cash equivalents\n\n \n\n \n\n8,787\n\n \n\n \n\n \n\n \n\n5,714\n\n \n\nBeginning cash and cash equivalents\n\n \n\n \n\n258,972\n\n \n\n \n\n \n\n \n\n235,272\n\n \n\nEnding cash and cash equivalents\n\n$\n\n \n\n267,759\n\n \n\n \n\n$\n\n \n\n240,986\n\n \n\n \n\n \n\nSee accompanying notes to unaudited consolidated financial statements.\n\n6\n\n[Table of Contents](#toc_page)\n\n \n\nCF BANKSHARES INC.\n\nCONSOLIDATED STATEMENTS OF CASH FLOWS\n\n(Dollars in thousands, except per share data)\n\n(Unaudited)\n\n \n\n \n\nThree months ended March 31,\n\n \n\n \n\n2026\n\n \n\n \n\n2025\n\n \n\nSupplemental cash flow information:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nInterest paid\n\n$\n\n \n\n14,483\n\n \n\n \n\n$\n\n \n\n16,084\n\n \n\nIncome tax paid\n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nSupplemental noncash disclosures:\n\n \n\n \n\n \n\n \n\n \n\n \n\nTransfer from loans to foreclosed assets\n\n$\n\n \n\n—\n\n \n\n \n\n$\n\n \n\n524\n\n \n\nLoans transferred from held for sale to portfolio\n\n \n\n \n\n173\n\n \n\n \n\n \n\n \n\n—\n\n \n\nInitial recognition of operating right-of-use lease asset\n\n \n\n \n\n355\n\n \n\n \n\n \n\n \n\n—\n\n \n\nInitial recognition of operating lease liability\n\n \n\n \n\n355\n\n \n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\nSee accompanying notes to unaudited consolidated financial statements.\n\n7\n\n[Table of Contents](#toc_page)\n\n \n\nCF BANKSHARES INC.\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)\n\n(Dollars in thousands, except per share data)\n\nNOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES\n\nBasis of Presentation:\n\nThe consolidated financial statements consist of CF Bankshares Inc. (the “Holding Company”) and its wholly-owned subsidiary, CFBank, National Association (“CFBank”). On December 1, 2016, CFBank converted from a federal savings institution to a national bank. Prior to December 1, 2016, the Holding Company was a registered savings and loan holding company. Effective as of December 1, 2016 and in conjunction with the conversion of CFBank to a national bank, the Holding Company became a registered bank holding company and elected financial holding company status with the Board of Governors of the Federal Reserve System (the \"Federal Reserve\"). Effective as of August 26, 2025, the Holding Company decertified its financial holding company status with the Federal Reserve. The Holding Company and CFBank are sometimes collectively referred to herein as the “Company.” Intercompany transactions and balances are eliminated in consolidation.\n\nThe accompanying unaudited interim consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and the instructions for Form 10-Q and Article 10 of Regulation S-X promulgated by the Securities and Exchange Commission (the “SEC”). Because this report is based on an interim period, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted.\n\nIn the opinion of the management of the Company, the accompanying unaudited interim consolidated financial statements include all adjustments necessary for a fair presentation of the Company’s financial condition and the results of operations for the periods presented. These adjustments are of a normal recurring nature, unless otherwise disclosed in this Quarterly Report on Form 10-Q. The financial performance reported for the Company for the three months ended March 31, 2026 is not necessarily indicative of the results that may be expected for the full year. This information should be read in conjunction with the Company’s latest Annual Report to Stockholders and Annual Report on Form 10-K on file with the SEC. Reference is made to the accounting policies of the Company described in Note 1 to the Audited Consolidated Financial Statements contained in the Company’s 2025 Annual Report to Stockholders included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 (referred to herein as the “2025 Audited Financial Statements”). The Company has consistently followed those policies in preparing this Quarterly Report on Form 10-Q.\n\nLoans and Leases: Loans and leases that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding, adjusted for purchase premiums and discounts, deferred loan fees and costs and an allowance for credit losses on loans and leases. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the level yield method without anticipating prepayments.\n\nThe accrual of interest income on all classes of loans, except other consumer loans, is discontinued and the loan is placed on nonaccrual status at the time the loan is 90 days delinquent unless the loan is well-secured and in process of collection. Other consumer loans are typically charged off no later than 90 days past due. Past due status is based on the contractual terms of the loan for all classes of loans. In all cases, loans are placed on nonaccrual status or charged-off at an earlier date if collection of principal or interest is considered doubtful. Nonaccrual loans and loans past due 90 days still on accrual status include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually evaluated loans.\n\nAll interest accrued but not received for each loan placed on nonaccrual status is reversed against interest income in the period in which it is placed on nonaccrual status. Interest received on such loans is accounted for on the cash-basis or cost recovery method, until qualifying for return to accrual status. Loans are considered for return to accrual status provided all the principal and interest amounts that are contractually due are brought current, there is a current and well documented credit analysis, there is reasonable assurance of repayment of principal and interest, and the customer has demonstrated sustained, amortizing payment performance of at least six months.\n\n8\n\n[Table of Contents](#toc_page)\n\nCF BANKSHARES INC.\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)\n\n(Dollars in thousands, except per share data)\n\n \n\nAllowance for credit losses on investment securities available for sale: For investment securities available for sale in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more likely than not that it will be required to sell, the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security's amortized cost basis is written down to fair value through income. For investment securities available for sale that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, the Company considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded, limited to the amount that the fair value is less than the amortized cost basis. Unrealized losses that have not been recorded through an allowance for credit losses are recognized in other comprehensive income. Adjustments to the allowance for credit losses are reported in the income statement as a component of the provision for credit loss. The Company has made the accounting policy election to exclude accrued interest receivable on investment securities available for sale from the estimate of credit losses. Investment securities available for sale are charged off against the allowance or, in the absence of any allowance, written down through the income statement when deemed uncollectible or when either of the aforementioned criteria regarding intent or requirement to sell is met. The Company did not record an allowance for credit losses on its investment securities available for sale as of March 31, 2026 and December 31, 2025, as the unrealized losses were attributable to changes in interest rates, not credit quality.\n\nAllowance for Credit Losses – Loans and Leases (\"ACL - Loans\"): The ACL - Loans is a valuation account that is deducted from the loans' amortized cost basis to present the net amount expected to be collected on loans over the contractual term. Loans and leases are collectively referred to as “loans” for the purpose of discussing the allowance for credit losses. Loans are charged off against the allowance when the uncollectibility of the loan is confirmed. Expected recoveries do not exceed the aggregate of amounts previously charged off and expected to be charged off. Adjustments to the ACL - Loans are reported in the income statement as a component of provision for credit loss. The Company has made the accounting policy election to exclude accrued interest receivable on loans from the estimate of credit losses. Further information regarding the policies and methodology used to estimate the ACL - Loans is detailed in Note 4 - Loans and Leases to the Consolidated Financial Statements.\n\nAllowance for Credit Losses – Unfunded Commitments: The allowance for credit losses on unfunded commitments is a liability account representing expected credit losses over the contractual period for which the Company is exposed to credit risk resulting from a contractual obligation to extend credit. No allowance is recognized if the Company has the unconditional right to cancel the obligation. Unfunded commitments primarily consist of amounts available under outstanding lines of credit and letters of credit. For the period of exposure, the estimate of expected credit losses considers both the likelihood that funding will occur and the amount expected to be funded over the estimated remaining life of the commitment or other off-balance sheet exposure. The likelihood and expected amount of funding are based on historical utilization rates. The amount of the allowance represents management's best estimate of expected credit losses on commitments expected to be funded over the contractual life of the commitment. The allowance for unfunded commitments is adjusted through the income statement as a component of provision for credit loss.\n\nForeclosed Assets: Assets acquired through or instead of loan foreclosure are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. If fair value declines subsequent to foreclosure, an adjustment is recorded through expense. Operating costs after acquisition are expensed. There were no foreclosed assets at March 31, 2026 and December 31, 2025.\n\nLow Income Housing Tax Credits (LIHTC) and Historical Tax Credits (HTC): The Company has invested in LIHTCs and HTCs through direct investments and funds that assist corporations in investing in limited partnerships and limited liability companies that own, develop and operate low income residential rental properties and historic properties for purposes of qualifying for the LIHTCs and HTCs. These investments are accounted for under the proportional amortization method using the practical expedient which recognizes the amortization of the investment in proportion to the tax credit.\n\nHolding Company Loans to Developers: The Holding Company engages in lending to developers for the purpose of allocating excess liquidity into higher earning assets while diversifying its revenue sources. The developers are engaged in shorter term operating activities related to single family real estate developments. Income is recognized based on the interest charged on outstanding balances and from incentive payments as the housing units are sold. The outstanding balance of these loans by the Holding Company at March 31, 2026 and December 31, 2025 was $798 and $853, respectively, and is included in accrued interest receivable and other assets on the Consolidated Balance Sheets. Income recognized, including incentive payments, was $15 for the three months ended March 31, 2026 and $54 for the three months ended March 31, 2025 and is included in Other noninterest income in the Consolidated Statements of Income.\n\n9\n\n[Table of Contents](#toc_page)\n\nCF BANKSHARES INC.\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)\n\n(Dollars in thousands, except per share data)\n\n \n\nInvestment in Real Estate Entity: CFBank made an equity investment as a non-managing member in the real estate entity that owns and operates the building that houses the Company’s headquarters. Upon applying Accounting Standards Codification (“ASC”) 810, the Company determined that CFBank is not the primary beneficiary of the real estate entity, a variable interest entity. Therefore, the real estate entity is not consolidated in the Company’s financial statements and is instead accounted for using the equity method of accounting. As a result, the investment of $1.2 million is shown in Accrued interest receivable and other assets on the Consolidated Balance Sheets. The maximum exposure to loss related to this investment was $1.2 million at March 31, 2026 and December 31, 2025.\n\nEarnings Per Common Share: The two-class method is used in the calculation of basic and diluted earnings per share. Under the two-class method, earnings available to common stockholders for the period are allocated between common stockholders and participating securities (Series D Preferred Stock) according to dividends declared (or accumulated) and participation rights in undistributed earnings. There were no anti-dilutive securities for the three months ended March 31, 2026. There were 11,504 shares of anti-dilutive securities for the three months ended March 31, 2025. The factors used in the earnings per share computation follow:\n\n \n\n \n\n \n\nThree months ended\n\n \n\n \n\n \n\nMarch 31,\n\n \n\n \n\n \n\n2026\n\n \n\n \n\n2025\n\n \n\n \n\n \n\n(unaudited)\n\n \n\nBasic\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nNet income\n\n \n\n$\n\n \n\n5,024\n\n \n\n \n\n$\n\n \n\n4,430\n\n \n\nEarnings allocated to participating securities\n\n \n\n \n\n \n\n(155\n\n)\n\n \n\n \n\n \n\n(136\n\n)\n\nNet income allocated to common shareholders\n\n \n\n$\n\n \n\n4,869\n\n \n\n \n\n$\n\n \n\n4,294\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nWeighted average common shares outstanding\n   including unvested share-based payment\n   awards\n\n \n\n \n\n \n\n6,453,084\n\n \n\n \n\n \n\n \n\n6,406,483\n\n \n\nLess: Unvested share-based payment awards-\n   2019 Incentive Plan\n\n \n\n \n\n \n\n(166,787\n\n)\n\n \n\n \n\n \n\n(120,834\n\n)\n\nAverage shares\n\n \n\n \n\n \n\n6,286,297\n\n \n\n \n\n \n\n \n\n6,285,649\n\n \n\nBasic earnings per common share\n\n \n\n$\n\n \n\n0.77\n\n \n\n \n\n$\n\n \n\n0.68\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nDiluted\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nNet income allocated to common shareholders\n\n \n\n$\n\n \n\n4,869\n\n \n\n \n\n$\n\n \n\n4,294\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nWeighted average common shares outstanding\n   for basic earnings per common share\n\n \n\n \n\n \n\n6,286,297\n\n \n\n \n\n \n\n \n\n6,285,649\n\n \n\nAdd: Dilutive effects of unvested share-based\n   payment awards-2019 Plan\n\n \n\n \n\n \n\n21,774\n\n \n\n \n\n \n\n \n\n—\n\n \n\nAverage shares and dilutive potential common\n   shares\n\n \n\n \n\n \n\n6,308,071\n\n \n\n \n\n \n\n \n\n6,285,649\n\n \n\nDiluted earnings per common share\n\n \n\n$\n\n \n\n0.77\n\n \n\n \n\n$\n\n \n\n0.68\n\n \n\n \n\nDividend Restrictions: Banking regulations require us to maintain certain capital levels and may limit the dividends paid by CFBank to the Holding Company or by the Holding Company to stockholders. The ability of the Holding Company to pay dividends on its common stock is dependent upon the amount of cash and liquidity available at the Holding Company level, as well as the receipt of dividends and other distributions from CFBank to the extent necessary to fund such dividends. The Holding Company is a legal entity that is separate and distinct from CFBank, which has no obligation to make any dividends or other funds available for the payment of dividends by the Holding Company. The Holding Company also is subject to various legal and regulatory policies and guidelines impacting the Holding Company’s ability to pay dividends on its stock. In addition, the Holding Company’s ability to pay dividends on its stock is conditioned upon the payment, on a current basis, of quarterly interest payments on the subordinated debentures underlying the Company’s trust preferred securities. Finally, under the terms of the Holding Company’s fixed-to-floating rate subordinated notes, the Holding Company’s ability to pay dividends on its stock is conditioned upon the Holding Company continuing to make required principal and interest payments, and not incurring an event of default, with respect to the subordinated notes.\n\n10\n\n[Table of Contents](#toc_page)\n\nCF BANKSHARES INC.\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)\n\n(Dollars in thousands, except per share data)\n\n \n\nSegment Reporting: The Company adopted Accounting Standards Update (\"ASU\") No. 2023-07 “Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures” as of January 1, 2024. The Company has determined that all of its business activities meet the aggregation criteria of ASC 280, Segment Reporting, as its current operating model is structured whereby all of its business activities serve a similar base of primarily commercial clients utilizing a company-wide offering of similar products and services managed through similar processes and platforms that are collectively reviewed by the Company’s Chief Executive Officer, who has been identified as the chief operating decision maker (“CODM”).\n\nThe CODM regularly assesses performance of the aggregated single operating and reporting segment and decides how to allocate resources based on net income calculated on the same basis as is net income reported in the Company’s Consolidated Statements of Income and Consolidated Statements of Comprehensive Income. The CODM is also regularly provided with expense information at a level consistent with that disclosed in the Company’s Consolidated Statements of Income and Consolidated Statements of Comprehensive Income.\n\nRecent Accounting Pronouncements and Developments:\n\nIn December 2023, the FASB issued ASU No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” The FASB issued ASU 2023-09 to address investor requests for more transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information. ASU 2023-09 is to be applied on a prospective basis and is effective for annual periods beginning after December 15, 2024 with early adoption permitted. The Company adopted ASU 2023-09 effective for its fiscal year ended December 31, 2025, which had an immaterial impact on income tax disclosures in the Company’s Consolidated Financial Statements.\n\nFuture Accounting Matters:\n\nIn November 2024, the FASB issued ASU No. 2024-03, “Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40).” The pronouncement requires public entities to disclose additional information about specific expense categories in the notes to the financial statements. The guidance is effective for public business entities for fiscal years beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is assessing ASU 2024-03 and its impact on its Consolidated Financial Statements and disclosures.\n\nIn November 2025, the FASB issued ASU No. 2025-08, \"Financial Instruments - Credit Losses (Topic 326): Purchased Loans.\" The pronouncement amends the guidance on the accounting for certain purchased loans. The new guidance makes significant changes to the accounting for certain acquired seasoned loans subject to the current expected credit loss model. The amendments in ASU 2025-08 apply prospectively and will be effective for the Company beginning January 1, 2027, with early adoption permitted, and is not expected to have a significant impact on the Company's Consolidated Financial Statements.\n\nIn November 2025, the FASB issued ASU No. 2025-11, \"Interim Reporting (Topic 270): Narrow-Scope Improvements.\" The pronouncement is intended to provide clarity about the current interim reporting requirements, provides a list of the interim disclosures required by all other Codification topics and establishes a disclosure principle that requires entities to disclose events since the end of the last annual reporting period that have a material impact on the entity. ASU 2025-11 will be effective for the Company beginning January 1, 2028, with early adoption permitted, and is not expected to have a significant impact on the Company's Consolidated Financial Statements.\n\nIn December 2025, the FASB issued ASU No. 2025-12, \"Codification Improvements.\" The pronouncement includes updates for a broad range of Topics arising from technical corrections, unintended application of the Codification, clarifications and other minor improvements. The amendments in ASU 2025-12 will be effective for the Company beginning January 1, 2029 and are not expected to have a significant impact on the Company's Consolidated Financial Statements.\n\nGeneral Litigation\n\nThe Company is subject to claims and lawsuits that arise primarily in the ordinary course of business. In the opinion of management, the disposition or ultimate resolution of such claims and lawsuits is not anticipated to have a material adverse effect on the consolidated financial position, results of operations and cash flows of the Company.\n\n11\n\n[Table of Contents](#toc_page)\n\nCF BANKSHARES INC.\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)\n\n(Dollars in thousands, except per share data)\n\n \n\nNOTE 2 – REVENUE RECOGNITION\n\nGAAP requires reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity's contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied.\n\nThe majority of our revenue-generating transactions are not from contracts with customers, and instead consist of revenue generated from financial instruments, such as our loans, letters of credit, derivatives and investment securities, as well as revenue generated from our mortgage activities related to net gains on sale of loans.\n\nAll of the Company’s revenue from contracts with customers is recognized within Noninterest income. Descriptions of revenue-generating activities which are presented in our Consolidated Statements of Income as components of Noninterest income are as follows:\n\n•\nService charges on deposit accounts - these represent general service fees for monthly account maintenance and activity, or transaction-based fees, and consist of transaction-based revenue, time-based revenue (service period), item-based revenue or some other individual attribute-based revenue. Revenue is recognized when our performance obligation is completed, which is generally monthly for account maintenance services or when a transaction has been completed (such as a wire transfer). Payments for such performance obligations are generally received at the time the performance obligations are satisfied.\n\n12\n\n[Table of Contents](#toc_page)\n\nCF BANKSHARES INC.\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)\n\n(Dollars in thousands, except per share data)\n\n \n\nNOTE 3 – SECURITIES\n\nThe following tables summarize the amortized cost and fair value of the Company’s available-for-sale securities portfolio at March 31, 2026 and December 31, 2025, and the corresponding amounts of unrealized gains and losses recognized in accumulated other comprehensive loss:\n\n \n\n \n\n \n\nAmortized Cost\n\n \n\n \n\nGross\nUnrealized\nGains\n\n \n\n \n\nGross\nUnrealized\nLosses\n\n \n\n \n\nFair Value\n\n \n\nMarch 31, 2026 (unaudited)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nCorporate debt\n\n \n\n$\n\n \n\n9,986\n\n \n\n \n\n$\n\n \n\n—\n\n \n\n \n\n$\n\n \n\n1,686\n\n \n\n \n\n$\n\n \n\n8,300\n\n \n\nIssued by U.S. government-sponsored entities and agencies:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nU.S. Treasury\n\n \n\n \n\n \n\n1,000\n\n \n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n1,000\n\n \n\nCollateralized mortgage obligations\n\n \n\n \n\n \n\n8,294\n\n \n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n199\n\n \n\n \n\n \n\n \n\n8,095\n\n \n\nTotal\n\n \n\n$\n\n \n\n19,280\n\n \n\n \n\n$\n\n \n\n—\n\n \n\n \n\n$\n\n \n\n1,885\n\n \n\n \n\n$\n\n \n\n17,395\n\n \n\n \n\n(1) Unrealized gain is less than $1 resulting in rounding to zero.\n\n \n\n \n\n \n\nAmortized Cost\n\n \n\n \n\nGross\nUnrealized\nGains\n\n \n\n \n\nGross\nUnrealized\nLosses\n\n \n\n \n\nFair Value\n\n \n\nDecember 31, 2025\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nCorporate debt\n\n \n\n$\n\n \n\n9,985\n\n \n\n \n\n$\n\n \n\n—\n\n \n\n \n\n$\n\n \n\n1,585\n\n \n\n \n\n$\n\n \n\n8,400\n\n \n\nIssued by U.S. government-sponsored entities and agencies:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nU.S. Treasury\n\n \n\n \n\n \n\n998\n\n \n\n \n\n \n\n \n\n2\n\n \n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n1,000\n\n \n\nCollateralized mortgage obligations\n\n \n\n \n\n \n\n8,248\n\n \n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n152\n\n \n\n \n\n \n\n \n\n8,096\n\n \n\nTotal\n\n \n\n$\n\n \n\n19,231\n\n \n\n \n\n$\n\n \n\n2\n\n \n\n \n\n$\n\n \n\n1,737\n\n \n\n \n\n$\n\n \n\n17,496\n\n \n\nThere was no impairment recognized in accumulated other comprehensive loss for securities available for sale at March 31, 2026 or March 31, 2025.\n\nThere were no sales of securities during the three months ended March 31, 2026 and 2025.\n\nThe amortized cost and fair value of debt securities at March 31, 2026 and December 31, 2025 are shown in the table below by contractual maturity. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately.\n\n \n\n \n\n \n\nMarch 31, 2026\n\n \n\n \n\n \n\nDecember 31, 2025\n\n \n\n \n\n \n\n(unaudited)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nAmortized Cost\n\n \n\n \n\nFair Value\n\n \n\n \n\nAmortized Cost\n\n \n\n \n\nFair Value\n\n \n\nDue in one year or less\n\n \n\n$\n\n \n\n1,000\n\n \n\n \n\n$\n\n \n\n1,000\n\n \n\n \n\n$\n\n \n\n998\n\n \n\n \n\n$\n\n \n\n1,000\n\n \n\nDue from five to ten years\n\n \n\n \n\n \n\n9,986\n\n \n\n \n\n \n\n \n\n8,300\n\n \n\n \n\n \n\n \n\n9,985\n\n \n\n \n\n \n\n \n\n8,400\n\n \n\nCollateralized mortgage obligations\n\n \n\n \n\n \n\n8,294\n\n \n\n \n\n \n\n \n\n8,095\n\n \n\n \n\n \n\n \n\n8,248\n\n \n\n \n\n \n\n \n\n8,096\n\n \n\nTotal\n\n \n\n$\n\n \n\n19,280\n\n \n\n \n\n$\n\n \n\n17,395\n\n \n\n \n\n$\n\n \n\n19,231\n\n \n\n \n\n$\n\n \n\n17,496\n\n \n\n \n\nFair value of securities pledged as collateral was as follows:\n\n \n\n \n\nMarch 31, 2026\n\n \n\n \n\nDecember 31, 2025\n\n \n\n \n\n(unaudited)\n\n \n\n \n\n \n\n \n\n \n\nPledged as collateral for:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nPublic deposits\n\n \n\n \n\n750\n\n \n\n \n\n \n\n \n\n750\n\n \n\nTotal\n\n$\n\n \n\n750\n\n \n\n \n\n$\n\n \n\n750\n\n \n\n \n\nAt March 31, 2026 and December 31, 2025, there were no holdings of securities of any one issuer in an amount greater than 10% of stockholders’ equity.\n\n13\n\n[Table of Contents](#toc_page)\n\nCF BANKSHARES INC.\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)\n\n(Dollars in thousands, except per share data)\n\n \n\nThe following table summarizes securities with unrealized losses at March 31, 2026 and December 31, 2025, aggregated by major security type and length of time in a continuous unrealized loss position.\n\n \n\nMarch 31, 2026 (unaudited)\n\n \n\nLess than 12 Months\n\n \n\n \n\n12 Months or More\n\n \n\n \n\nTotal\n\n \n\nDescription of Securities\n\n \n\nFair Value\n\n \n\n \n\nUnrealized\nLoss\n\n \n\n \n\nFair Value\n\n \n\n \n\nUnrealized\nLoss\n\n \n\n \n\nFair Value\n\n \n\n \n\nUnrealized\nLoss\n\n \n\nCorporate debt\n\n \n\n$\n\n \n\n—\n\n \n\n \n\n$\n\n \n\n—\n\n \n\n \n\n$\n\n \n\n8,300\n\n \n\n \n\n$\n\n \n\n1,686\n\n \n\n \n\n$\n\n \n\n8,300\n\n \n\n \n\n$\n\n \n\n1,686\n\n \n\nIssued by U.S. government-sponsored entities and agencies:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nCollateralized mortgage obligations\n\n \n\n \n\n \n\n8,095\n\n \n\n \n\n \n\n \n\n199\n\n \n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n8,095\n\n \n\n \n\n \n\n \n\n199\n\n \n\nTotal temporarily impaired\n\n \n\n$\n\n \n\n8,095\n\n \n\n \n\n$\n\n \n\n199\n\n \n\n \n\n$\n\n \n\n8,300\n\n \n\n \n\n$\n\n \n\n1,686\n\n \n\n \n\n$\n\n \n\n16,395\n\n \n\n \n\n$\n\n \n\n1,885\n\n \n\n \n\nDecember 31, 2025\n\n \n\nLess than 12 Months\n\n \n\n \n\n12 Months or More\n\n \n\n \n\nTotal\n\n \n\nDescription of Securities\n\n \n\nFair Value\n\n \n\n \n\nUnrealized\nLoss\n\n \n\n \n\nFair Value\n\n \n\n \n\nUnrealized\nLoss\n\n \n\n \n\nFair Value\n\n \n\n \n\nUnrealized\nLoss\n\n \n\nCorporate debt\n\n \n\n$\n\n \n\n—\n\n \n\n \n\n$\n\n \n\n—\n\n \n\n \n\n$\n\n \n\n8,400\n\n \n\n \n\n$\n\n \n\n1,585\n\n \n\n \n\n$\n\n \n\n8,400\n\n \n\n \n\n$\n\n \n\n1,585\n\n \n\nIssued by U.S. government-sponsored\n   entities and agencies:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nCollateralized mortgage obligations\n\n \n\n \n\n \n\n8,096\n\n \n\n \n\n \n\n \n\n152\n\n \n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n8,096\n\n \n\n \n\n \n\n \n\n152\n\n \n\nTotal temporarily impaired\n\n \n\n$\n\n \n\n8,096\n\n \n\n \n\n$\n\n \n\n152\n\n \n\n \n\n$\n\n \n\n8,400\n\n \n\n \n\n$\n\n \n\n1,585\n\n \n\n \n\n$\n\n \n\n16,496\n\n \n\n \n\n$\n\n \n\n1,737\n\n \n\n \n\nAt March 31, 2026 and December 31, 2025, 94.3% of the Company’s available for sale securities were reported at less than historical cost.\n\nThe unrealized losses at March 31, 2026 and December 31, 2025 were related to one Corporate debt security and one Collateralized mortgage obligation security. Because the decline in fair values were attributable to changes in market conditions, and not credit quality, and because the Company did not have the intent to sell these securities and it was likely that it would not be required to sell these securities before their anticipated recovery, the Company did not record an allowance for credit losses with respect to these securities at March 31, 2026 and December 31, 2025.\n\nNOTE 4 – LOANS AND LEASES\n\nThe following table presents the recorded investment in loans and leases by portfolio segment. The recorded investment in loans and leases includes the principal balance outstanding adjusted for purchase premiums and discounts, and deferred loan fees and costs.\n\n \n\n \n\nMarch 31, 2026\n\n \n\n \n\nDecember 31, 2025\n\n \n\n \n\n(unaudited)\n\n \n\n \n\n \n\n \n\n \n\nCommercial (1)\n\n$\n\n \n\n378,164\n\n \n\n \n\n$\n\n \n\n369,430\n\n \n\nReal estate:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nSingle-family residential\n\n \n\n \n\n417,385\n\n \n\n \n\n \n\n \n\n427,905\n\n \n\nMulti-family residential\n\n \n\n \n\n161,088\n\n \n\n \n\n \n\n \n\n170,972\n\n \n\nCommercial\n\n \n\n \n\n560,871\n\n \n\n \n\n \n\n \n\n533,923\n\n \n\nConstruction\n\n \n\n \n\n217,192\n\n \n\n \n\n \n\n \n\n208,936\n\n \n\nConsumer:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nHome equity lines of credit\n\n \n\n \n\n41,452\n\n \n\n \n\n \n\n \n\n41,983\n\n \n\nOther\n\n \n\n \n\n3,751\n\n \n\n \n\n \n\n \n\n3,383\n\n \n\nSubtotal\n\n \n\n \n\n1,779,903\n\n \n\n \n\n \n\n \n\n1,756,532\n\n \n\nLess: ACL – Loans\n\n \n\n \n\n(18,641\n\n)\n\n \n\n \n\n \n\n(17,678\n\n)\n\nLoans and leases, net\n\n$\n\n \n\n1,761,262\n\n \n\n \n\n$\n\n \n\n1,738,854\n\n \n\n \n\n14\n\n[Table of Contents](#toc_page)\n\nCF BANKSHARES INC.\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)\n\n(Dollars in thousands, except per share data)\n\n \n\n \n\n(1)\nIncludes $1,778 and $2,710 of commercial leases at March 31, 2026 and December 31, 2025, respectively.\n\nAllowance for Credit Losses on Loans (ACL – Loans)\n\nThe ACL - Loans is a valuation account that is deducted from the amortized cost basis of loans and leases to present the net amount expected to be collected on loans over the contractual term. Loans and leases are collectively referred to as “loans” for the purpose of discussing the allowance for credit losses. The ACL - Loans is adjusted by the provision for credit losses, which is reported in earnings, and reduced by charge offs for loans, net of recoveries. Provision for credit losses on loans reflects the totality of actions taken on all loans for a particular period including any necessary increases or decreases in the allowance related to changes in credit loss expectations associated with specific loans or pools of loans. Loans are charged off against the allowance when the uncollectibility of the loan is confirmed. Expected recoveries do not exceed the aggregate of amounts previously charged off and expected to be charged off.\n\nThe ACL - Loans represents the Company's best estimate of current expected credit losses (CECL) on loans using relevant available information, from internal and external sources, related to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. The CECL calculation is performed and evaluated quarterly and losses are estimated over the expected life of the loan. The level of the ACL - Loans is believed to be adequate to absorb all expected future losses inherent in the loan portfolio at the measurement date.\n\nIn calculating the ACL - Loans, the loan portfolio is pooled into loan segments with similar risk characteristics. Common characteristics include the type or purpose of the loan, underlying collateral and historical/expected credit loss patterns. In developing the loan segments, the Company analyzes the degree of correlation in how loans within each portfolio respond when subjected to varying economic conditions and scenarios as well as other portfolio stress factors.\n\nThe expected credit losses are measured over the life of each loan segment utilizing the average charge-off methodology combined with economic forecast models to estimate the current expected credit loss inherent in the loan portfolio. This approach is also leveraged to estimate the expected credit losses associated with non-cancellable unfunded loan commitments incorporating expected utilization rates.\n\nThe Company sub-segments certain commercial loan portfolios by risk level where appropriate. The Company utilizes a one-year reasonable and supportable economic forecast period.\n\nThe Company qualitatively adjusts model results for risk factors that are not inherently considered in the historical losses, but are nonetheless relevant in assessing the expected credit losses within the loan portfolio. These adjustments may increase or decrease the estimate of expected credit losses based upon the assessed level of risk for each qualitative factor. The various risks that may be considered in making qualitative adjustments include, among other things, the impact of (i) changes in economic conditions, (ii) changes in the nature and volume of the loan portfolio, (iii) changes in the existence, growth and effect of any concentrations in credit, (iv) changes in lending policies and procedures, including changes in underwriting standards and practices for collections, write-offs, and recoveries, (v) changes in the quality of the credit review function, (vi) changes in the experience, ability and depth of lending management and staff, (vii) changes in the volume and severity of past due and adversely classified loans and the volume of nonaccrual loans, (viii) changes in the value of underlying collateral for collateral-dependent loans, and (ix) other environmental factors such as regulatory, legal and technological considerations, as well as competition.\n\nIn some cases, management may determine that an individual loan exhibits unique risk characteristics which differentiate the loan from other loans within the loan segments. In such cases, the loans are evaluated for expected credit losses on an individual basis and excluded from the collective evaluation. Specific reserves in the allowance for credit losses are determined by analyzing the borrower's ability to repay amounts owed, collateral deficiencies, the relative risk grade of the loan and economic conditions affecting the borrower's industry, among other things. A loan is considered to be collateral dependent when, based upon management's assessment, the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. In such cases, expected credit losses are based on the fair value of the collateral at the measurement date, adjusted for estimated selling costs if satisfaction of the loan depends on the sale of the collateral. The fair value of collateral supporting collateral dependent loans is evaluated on a quarterly basis.\n\n15\n\n[Table of Contents](#toc_page)\n\nCF BANKSHARES INC.\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)\n\n(Dollars in thousands, except per share data)\n\n \n\nThe following tables present the activity in the ACL - Loans by portfolio segment for the three months ended March 31, 2026 and 2025 (unaudited).\n\n \n\n \n\nThree Months Ended March 31, 2026 (unaudited)\n\n \n\n \n\n \n\n \n\n \n\nReal Estate\n\n \n\n \n\n \n\n \n\n \n\nConsumer\n\n \n\n \n\n \n\n \n\n \n\nCommercial\n\n \n\nSingle-\nfamily\n\n \n\nMulti-\nfamily\n\n \n\nCommercial\n\n \n\nConstruction\n\n \n\nHome\nequity\nlines\nof credit\n\n \n\nOther\n\n \n\nTotal\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nAllowance for credit losses\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nBalances, January 1, 2026\n\n \n\n$\n\n6,001\n\n \n\n$\n\n2,528\n\n \n\n$\n\n1,494\n\n \n\n$\n\n4,938\n\n \n\n$\n\n2,031\n\n \n\n$\n\n390\n\n \n\n$\n\n296\n\n \n\n$\n\n17,678\n\nProvision (reversal) for credit losses\n\n \n\n \n\n161\n\n \n\n \n\n(96)\n\n \n\n \n\n50\n\n \n\n \n\n190\n\n \n\n \n\n651\n\n \n\n \n\n(12)\n\n \n\n \n\n35\n\n \n\n \n\n979\n\nRecoveries on loans\n\n \n\n \n\n51\n\n \n\n \n\n10\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n61\n\nLoans charged off\n\n \n\n \n\n(77)\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n(77)\n\nBalances, March 31, 2026\n\n \n\n$\n\n6,136\n\n \n\n$\n\n2,442\n\n \n\n$\n\n1,544\n\n \n\n$\n\n5,128\n\n \n\n$\n\n2,682\n\n \n\n$\n\n378\n\n \n\n$\n\n331\n\n \n\n$\n\n18,641\n\n \n\n \n\n \n\n \n\nThree Months Ended March 31, 2025 (unaudited)\n\n \n\n \n\n \n\n \n\n \n\nReal Estate\n\n \n\n \n\n \n\n \n\n \n\nConsumer\n\n \n\n \n\n \n\n \n\n \n\nCommercial\n\n \n\nSingle-family\n\n \n\nMulti-family\n\n \n\nCommercial\n\n \n\nConstruction\n\n \n\nHome\nequity\nlines\nof credit\n\n \n\nOther\n\n \n\nTotal\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nAllowance for credit losses\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nBalances, January 1, 2025\n\n \n\n$\n\n7,005\n\n \n\n$\n\n2,787\n\n \n\n$\n\n1,382\n\n \n\n$\n\n3,918\n\n \n\n$\n\n1,741\n\n \n\n$\n\n371\n\n \n\n$\n\n270\n\n \n\n$\n\n17,474\n\nProvision (reversal) for credit losses\n\n \n\n \n\n831\n\n \n\n \n\n(276)\n\n \n\n \n\n(171)\n\n \n\n \n\n(44)\n\n \n\n \n\n11\n\n \n\n \n\n19\n\n \n\n \n\n(18)\n\n \n\n \n\n352\n\nRecoveries on loans\n\n \n\n \n\n61\n\n \n\n \n\n9\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n1\n\n \n\n \n\n—\n\n \n\n \n\n71\n\nLoans charged off\n\n \n\n \n\n(67)\n\n \n\n \n\n(27)\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n(94)\n\nBalances, March 31, 2025\n\n \n\n$\n\n7,830\n\n \n\n$\n\n2,493\n\n \n\n$\n\n1,211\n\n \n\n$\n\n3,874\n\n \n\n$\n\n1,752\n\n \n\n$\n\n391\n\n \n\n$\n\n252\n\n \n\n$\n\n17,803\n\n \n\n \n\nDetermining fair value for collateral dependent loans requires obtaining a current independent appraisal of the collateral and applying a discount factor, which includes selling costs if applicable, to the value. The fair value of real estate is generally based on appraisals by qualified licensed appraisers. The appraisers typically determine the value of the real estate by utilizing an income or market valuation approach. If an appraisal is not available, the fair value may be determined by using a cash flow analysis. The fair value of other collateral such as business assets is typically ascertained by assessing, either singularly or some combination of, asset appraisals, accounts receivable aging reports, inventory listings and/or customer financial statements. Both appraised values and values based on the borrower’s financial information are discounted as considered appropriate based on age and quality of the information and current market conditions.\n\nThe tables below present the amortized cost basis of collateral dependent loans by loan class and their respective collateral types, which are individually evaluated to determine expected credit losses.\n\n \n\n \n\nMarch 31, 2026 (unaudited)\n\n \n\n \n\nResidential Real Estate\n\n \n\n \n\nOther\n\n \n\n \n\nTotal\n\n \n\n \n\nAllowance\non Collateral\nDependent\nLoans\n\n \n\nCommercial\n\n$\n\n \n\n—\n\n \n\n \n\n$\n\n \n\n8,127\n\n \n\n \n\n$\n\n \n\n8,127\n\n \n\n \n\n$\n\n \n\n1,746\n\n \n\nReal estate:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nSingle-family residential\n\n \n\n \n\n77\n\n \n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n77\n\n \n\n \n\n \n\n \n\n—\n\n \n\nCommercial:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nOwner occupied\n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n5,162\n\n \n\n \n\n \n\n \n\n5,162\n\n \n\n \n\n \n\n \n\n399\n\n \n\nTotal\n\n$\n\n \n\n77\n\n \n\n \n\n$\n\n \n\n13,289\n\n \n\n \n\n$\n\n \n\n13,366\n\n \n\n \n\n$\n\n \n\n2,145\n\n \n\n \n\n16\n\n[Table of Contents](#toc_page)\n\nCF BANKSHARES INC.\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)\n\n(Dollars in thousands, except per share data)\n\n \n\n \n\n \n\nDecember 31, 2025\n\n \n\n \n\nResidential Real Estate\n\n \n\n \n\nOther\n\n \n\n \n\nTotal\n\n \n\n \n\nAllowance\non Collateral\nDependent\nLoans\n\n \n\nCommercial\n\n$\n\n \n\n—\n\n \n\n \n\n$\n\n \n\n3,128\n\n \n\n \n\n$\n\n \n\n3,128\n\n \n\n \n\n$\n\n \n\n1,415\n\n \n\nReal estate:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nSingle-family residential\n\n \n\n \n\n79\n\n \n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n79\n\n \n\n \n\n \n\n \n\n—\n\n \n\nCommercial:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nOwner occupied\n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n5,204\n\n \n\n \n\n \n\n \n\n5,204\n\n \n\n \n\n \n\n \n\n380\n\n \n\nTotal\n\n$\n\n \n\n79\n\n \n\n \n\n$\n\n \n\n8,332\n\n \n\n \n\n$\n\n \n\n8,411\n\n \n\n \n\n$\n\n \n\n1,795\n\n \n\n \n\nThe following table presents the recorded investment in nonaccrual loans by class of loans at March 31, 2026 (unaudited):\n\n \n\nNonaccrual\nLoans\n\n \n\n \n\nNonaccrual\nLoans with\nno Allowance\nfor Credit\nLosses\n\n \n\nCommercial\n\n$\n\n \n\n13,053\n\n \n\n \n\n$\n\n \n\n1,074\n\n \n\nReal estate:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nSingle-family residential\n\n \n\n \n\n2,002\n\n \n\n \n\n \n\n \n\n2,002\n\n \n\nCommercial:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nOwner occupied\n\n \n\n \n\n5,163\n\n \n\n \n\n \n\n \n\n4,469\n\n \n\nConsumer:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nHome equity lines of credit\n\n \n\n \n\n95\n\n \n\n \n\n \n\n \n\n95\n\n \n\nTotal nonaccrual loans\n\n$\n\n \n\n20,313\n\n \n\n \n\n$\n\n \n\n7,640\n\n \n\n \n\nOf the $20,313 of nonaccrual loans at March 31, 2026, $5,054 was guaranteed by the Small Business Administration (SBA).\n\n \n\nThe following table presents the recorded investment in nonaccrual loans by class of loans at December 31, 2025.\n\n \n\nNon-Accrual\nLoans\n\n \n\n \n\nNon-Accrual\nLoans with\nno Allowance\nfor Credit\nLosses\n\n \n\nCommercial\n\n$\n\n \n\n8,181\n\n \n\n \n\n$\n\n \n\n1,074\n\n \n\nReal estate:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nSingle-family residential\n\n \n\n \n\n1,847\n\n \n\n \n\n \n\n \n\n1,847\n\n \n\nCommercial:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nOwner occupied\n\n \n\n \n\n5,204\n\n \n\n \n\n \n\n \n\n4,510\n\n \n\nConsumer:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nHome equity lines of credit\n\n \n\n \n\n97\n\n \n\n \n\n \n\n \n\n97\n\n \n\nTotal nonaccrual loans\n\n$\n\n \n\n15,329\n\n \n\n \n\n$\n\n \n\n7,528\n\n \n\n \n\nOf the $15,329 of nonaccrual loans at December 31, 2025, $5,085 was guaranteed by the SBA.\n\nNonaccrual loans at January 1, 2025 were $14,538.\n\nNonaccrual loans include both smaller balance single-family mortgage loans, consumer loans and commercial loans and leases that are collectively evaluated for impairment and individually evaluated loans. There were no loans 90 days or more past due and still accruing interest at March 31, 2026 or December 31, 2025.\n\n17\n\n[Table of Contents](#toc_page)\n\nCF BANKSHARES INC.\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)\n\n(Dollars in thousands, except per share data)\n\n \n\nThe following table presents the aging of the recorded investment in past due loans and leases by class of loans as of March 31, 2026 (unaudited):\n\n \n\n \n\n30 - 59\nDays\nPast Due\n\n \n\n \n\n60 - 89\nDays\nPast Due\n\n \n\n \n\n90 Days\nor more\nPast Due\n\n \n\n \n\nTotal\nPast Due\n\n \n\n \n\nLoans\nNot Past\nDue\n\n \n\n \n\nNonaccrual\nLoans Not\n90 days or\nmore Past\nDue\n\n \n\nCommercial\n\n$\n\n \n\n5,000\n\n \n\n \n\n$\n\n \n\n—\n\n \n\n \n\n$\n\n \n\n4,200\n\n \n\n \n\n$\n\n \n\n9,200\n\n \n\n \n\n$\n\n \n\n368,964\n\n \n\n \n\n$\n\n \n\n8,853\n\n \n\nReal estate:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nSingle-family residential\n\n \n\n \n\n1,160\n\n \n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n2,002\n\n \n\n \n\n \n\n \n\n3,162\n\n \n\n \n\n \n\n \n\n414,223\n\n \n\n \n\n \n\n \n\n—\n\n \n\nMulti-family residential\n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n161,088\n\n \n\n \n\n \n\n \n\n—\n\n \n\nCommercial:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nNon-owner occupied\n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n310,119\n\n \n\n \n\n \n\n \n\n—\n\n \n\nOwner occupied\n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n5,163\n\n \n\n \n\n \n\n \n\n5,163\n\n \n\n \n\n \n\n \n\n206,785\n\n \n\n \n\n \n\n \n\n—\n\n \n\nLand\n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n38,804\n\n \n\n \n\n \n\n \n\n—\n\n \n\nConstruction\n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n217,192\n\n \n\n \n\n \n\n \n\n—\n\n \n\nConsumer:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nHome equity lines of credit\n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n41,452\n\n \n\n \n\n \n\n \n\n95\n\n \n\nOther\n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n3,751\n\n \n\n \n\n \n\n \n\n—\n\n \n\nTotal\n\n$\n\n \n\n6,160\n\n \n\n \n\n$\n\n \n\n-\n\n \n\n \n\n$\n\n \n\n11,365\n\n \n\n \n\n$\n\n \n\n17,525\n\n \n\n \n\n$\n\n \n\n1,762,378\n\n \n\n \n\n$\n\n \n\n8,948\n\n \n\n \n\nThe following table presents the aging of the recorded investment in past due loans and leases by class of loans as of December 31, 2025:\n\n \n\n \n\n30 - 59\nDays\nPast Due\n\n \n\n \n\n60 - 89\nDays\nPast Due\n\n \n\n \n\n90 Days\nor more\nPast Due\n\n \n\n \n\nTotal\nPast Due\n\n \n\n \n\nLoans\nNot Past\nDue\n\n \n\n \n\nNonaccrual\nLoans Not\n90 days or\nmore Past\nDue\n\n \n\nCommercial\n\n$\n\n \n\n320\n\n \n\n \n\n$\n\n \n\n452\n\n \n\n \n\n$\n\n \n\n3,511\n\n \n\n \n\n$\n\n \n\n4,283\n\n \n\n \n\n$\n\n \n\n365,147\n\n \n\n \n\n$\n\n \n\n4,670\n\n \n\nReal estate:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nSingle-family residential\n\n \n\n \n\n892\n\n \n\n \n\n \n\n \n\n719\n\n \n\n \n\n \n\n \n\n1,847\n\n \n\n \n\n \n\n \n\n3,458\n\n \n\n \n\n \n\n \n\n424,447\n\n \n\n \n\n \n\n \n\n—\n\n \n\nMulti-family residential\n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n170,972\n\n \n\n \n\n \n\n \n\n—\n\n \n\nCommercial:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nNon-owner occupied\n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n288,891\n\n \n\n \n\n \n\n \n\n—\n\n \n\nOwner occupied\n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n5,204\n\n \n\n \n\n \n\n \n\n5,204\n\n \n\n \n\n \n\n \n\n199,212\n\n \n\n \n\n \n\n \n\n—\n\n \n\nLand\n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n40,616\n\n \n\n \n\n \n\n \n\n—\n\n \n\nConstruction\n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n208,936\n\n \n\n \n\n \n\n \n\n—\n\n \n\nConsumer:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nHome equity lines of credit\n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n41,983\n\n \n\n \n\n \n\n \n\n97\n\n \n\nOther\n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n3,383\n\n \n\n \n\n \n\n \n\n—\n\n \n\nTotal\n\n$\n\n \n\n1,212\n\n \n\n \n\n$\n\n \n\n1,171\n\n \n\n \n\n$\n\n \n\n10,562\n\n \n\n \n\n$\n\n \n\n12,945\n\n \n\n \n\n$\n\n \n\n1,743,587\n\n \n\n \n\n$\n\n \n\n4,767\n\n \n\nLoan Modifications:\n\nDuring the three months ended March 31, 2026, and March 31, 2025, the Company did not modify any loans to borrowers experiencing financial difficulties.\n\nUpon the Company’s determination that a modified loan (or portion of a loan) has subsequently been deemed uncollectible, the loan (or portion of the loan) is charged-off. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the allowance for credit losses is adjusted by the same amount.\n\n18\n\n[Table of Contents](#toc_page)\n\nCF BANKSHARES INC.\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)\n\n(Dollars in thousands, except per share data)\n\n \n\nCredit Quality Indicators:\n\nThe Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt, such as current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors. Management analyzes loans individually by classifying the loans as to credit risk. This analysis includes commercial, commercial real estate and multi-family residential real estate loans. Internal loan reviews for these loan types are performed at least annually, and more often for loans with higher credit risk. Adjustments to loan risk ratings are made based on the reviews and at any time information is received that may affect risk ratings. The following definitions are used for risk ratings:\n\nSpecial Mention. Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of CFBank’s credit position at some future date.\n\nSubstandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that there will be some loss if the deficiencies are not corrected.\n\nDoubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable.\n\nLoans not meeting the criteria to be classified into one of the above categories are considered to be “not rated” or “pass-rated” loans. Loans listed as not rated are primarily groups of homogeneous loans. Past due information is the primary credit indicator for groups of homogenous loans. Loans listed as pass-rated loans are loans that are subject to internal loan reviews and are determined not to meet the criteria required to be classified as special mention, substandard or doubtful.\n\n19\n\n[Table of Contents](#toc_page)\n\nCF BANKSHARES INC.\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)\n\n(Dollars in thousands, except per share data)\n\n \n\nThe following table summarizes the risk grading of the Company’s loan portfolio by loan class and by year of origination for the years indicated as of March 31, 2026. Consumer and Single-family residential loans are not risk graded. For purposes of this disclosure, those loans are classified in the following manner: loans that are 89 days or less past due and accruing are “performing” loans and loans greater than 89 days past due or in nonaccrual are “nonperforming” loans.\n\n \n\n \n\nTerm Loans (amortized cost basis by origination year)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n(unaudited)\n\n2026\n\n \n\n2025\n\n \n\n2024\n\n \n\n2023\n\n \n\n2022\n\n \n\nPrior\n\n \n\nRevolving\nloans\namortized\ncost basis\n\n \n\nRevolving\nloans\nconverted\nto term\n\n \n\nTotal\n\nCommercial\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nPass\n\n$\n\n19,206\n\n \n\n $\n\n55,968\n\n \n\n $\n\n25,631\n\n \n\n $\n\n19,623\n\n \n\n $\n\n39,146\n\n \n\n $\n\n82,073\n\n \n\n $\n\n96,927\n\n \n\n $\n\n3,206\n\n \n\n $\n\n341,780\n\nSpecial Mention\n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n29\n\n \n\n \n\n2,695\n\n \n\n \n\n22,328\n\n \n\n \n\n—\n\n \n\n \n\n25,052\n\nSubstandard\n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n1,328\n\n \n\n \n\n139\n\n \n\n \n\n5,069\n\n \n\n \n\n4,361\n\n \n\n \n\n50\n\n \n\n \n\n—\n\n \n\n \n\n10,947\n\nDoubtful\n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n385\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n385\n\nTotal Commercial\n\n \n\n19,206\n\n \n\n \n\n55,968\n\n \n\n \n\n26,959\n\n \n\n \n\n19,762\n\n \n\n \n\n44,629\n\n \n\n \n\n89,129\n\n \n\n \n\n119,305\n\n \n\n \n\n3,206\n\n \n\n \n\n378,164\n\nGross charge-offs during the three months ended March 31, 2026\n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n77\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n77\n\nReal estate loans:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nSingle-family residential\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nPayment performance\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nPerforming\n\n \n\n973\n\n \n\n \n\n17,847\n\n \n\n \n\n22,255\n\n \n\n \n\n24,344\n\n \n\n \n\n99,968\n\n \n\n \n\n249,996\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n415,383\n\nNonperforming\n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n156\n\n \n\n \n\n193\n\n \n\n \n\n400\n\n \n\n \n\n1,253\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n2,002\n\nTotal Single-family residential\n   loans\n\n \n\n973\n\n \n\n \n\n17,847\n\n \n\n \n\n22,411\n\n \n\n \n\n24,537\n\n \n\n \n\n100,368\n\n \n\n \n\n251,249\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n417,385\n\nMulti-family residential\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nPass\n\n \n\n3,798\n\n \n\n \n\n16,117\n\n \n\n \n\n27,160\n\n \n\n \n\n30,123\n\n \n\n \n\n18,086\n\n \n\n \n\n57,186\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n152,470\n\nSpecial Mention\n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n8,618\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n8,618\n\nTotal Multi-family residential\n   loans\n\n \n\n3,798\n\n \n\n \n\n16,117\n\n \n\n \n\n27,160\n\n \n\n \n\n30,123\n\n \n\n \n\n18,086\n\n \n\n \n\n65,804\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n161,088\n\nCommercial:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nNon-owner occupied\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nPass\n\n \n\n35,306\n\n \n\n \n\n84,648\n\n \n\n \n\n11,083\n\n \n\n \n\n41,192\n\n \n\n \n\n42,119\n\n \n\n \n\n90,802\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n305,150\n\nSpecial Mention\n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n4,969\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n4,969\n\nTotal Non-owner occupied\n   loans\n\n \n\n35,306\n\n \n\n \n\n84,648\n\n \n\n \n\n11,083\n\n \n\n \n\n41,192\n\n \n\n \n\n42,119\n\n \n\n \n\n95,771\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n310,119\n\nOwner occupied\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nPass\n\n \n\n12,825\n\n \n\n \n\n31,000\n\n \n\n \n\n14,118\n\n \n\n \n\n39,196\n\n \n\n \n\n42,172\n\n \n\n \n\n69,985\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n209,296\n\nSpecial Mention\n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n823\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n823\n\nSubstandard\n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n1,829\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n1,829\n\nTotal Owner occupied\n   loans\n\n \n\n12,825\n\n \n\n \n\n31,000\n\n \n\n \n\n14,941\n\n \n\n \n\n39,196\n\n \n\n \n\n44,001\n\n \n\n \n\n69,985\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n211,948\n\nLand\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nPass\n\n \n\n3,334\n\n \n\n \n\n19,462\n\n \n\n \n\n11,015\n\n \n\n \n\n615\n\n \n\n \n\n—\n\n \n\n \n\n4,378\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n38,804\n\nTotal Land loans\n\n \n\n3,334\n\n \n\n \n\n19,462\n\n \n\n \n\n11,015\n\n \n\n \n\n615\n\n \n\n \n\n—\n\n \n\n \n\n4,378\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n38,804\n\nConstruction\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nPerforming\n\n \n\n—\n\n \n\n \n\n777\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n777\n\nPass\n\n \n\n13,749\n\n \n\n \n\n44,898\n\n \n\n \n\n107,851\n\n \n\n \n\n24,293\n\n \n\n \n\n21,448\n\n \n\n \n\n2,169\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n214,408\n\nSpecial Mention\n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n343\n\n \n\n \n\n1,664\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n2,007\n\nTotal Construction loans\n\n \n\n13,749\n\n \n\n \n\n45,675\n\n \n\n \n\n108,194\n\n \n\n \n\n25,957\n\n \n\n \n\n21,448\n\n \n\n \n\n2,169\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n217,192\n\nTotal Real Estate loans\n\n \n\n69,985\n\n \n\n \n\n214,749\n\n \n\n \n\n194,804\n\n \n\n \n\n161,620\n\n \n\n \n\n226,022\n\n \n\n \n\n489,356\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n1,356,536\n\nConsumer:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nHome equity lines of credit:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nPayment performance\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nPerforming\n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n40,817\n\n \n\n \n\n540\n\n \n\n \n\n41,357\n\nNonperforming\n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n10\n\n \n\n \n\n85\n\n \n\n \n\n—\n\n \n\n \n\n95\n\nTotal Home equity lines of\n  credit\n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n10\n\n \n\n \n\n40,902\n\n \n\n \n\n540\n\n \n\n \n\n41,452\n\nOther\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nPerforming\n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n461\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n136\n\n \n\n \n\n3,154\n\n \n\n \n\n—\n\n \n\n \n\n3,751\n\nTotal Other consumer\n  loans\n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n461\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n136\n\n \n\n \n\n3,154\n\n \n\n \n\n—\n\n \n\n \n\n3,751\n\nTotal loans\n\n$\n\n89,191\n\n \n\n $\n\n270,717\n\n \n\n $\n\n222,224\n\n \n\n $\n\n181,382\n\n \n\n $\n\n270,651\n\n \n\n $\n\n578,631\n\n \n\n $\n\n163,361\n\n \n\n $\n\n3,746\n\n \n\n $\n\n1,779,903\n\nTotal gross charge-offs during the\n   three months ended March 31, 2026\n\n$\n\n—\n\n \n\n $\n\n—\n\n \n\n $\n\n—\n\n \n\n $\n\n—\n\n \n\n $\n\n—\n\n \n\n $\n\n77\n\n \n\n $\n\n—\n\n \n\n $\n\n—\n\n \n\n $\n\n77\n\n \n\n20\n\n[Table of Contents](#toc_page)\n\nCF BANKSHARES INC.\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)\n\n(Dollars in thousands, except per share data)\n\n \n\nThe following table summarizes the risk grading of the Company’s loan portfolio by loan class and by year of origination for the years indicated as of December 31, 2025. Consumer and Single-family residential loans are not risk graded. For purposes of this disclosure, those loans are classified in the following manner: loans that are 89 days or less past due and accruing are “performing” loans.\n\n \n\n \n\nTerm Loans (amortized cost basis by origination year)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n2025\n\n \n\n2024\n\n \n\n2023\n\n \n\n2022\n\n \n\n2021\n\n \n\nPrior\n\n \n\nRevolving\nloans\namortized\ncost basis\n\n \n\nRevolving\nloans\nconverted\nto term\n\n \n\nTotal\n\nCommercial\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nPass\n\n$\n\n59,943\n\n \n\n $\n\n25,874\n\n \n\n $\n\n20,473\n\n \n\n $\n\n41,457\n\n \n\n $\n\n62,332\n\n \n\n $\n\n29,045\n\n \n\n $\n\n112,874\n\n \n\n $\n\n3,122\n\n \n\n $\n\n355,120\n\nSpecial Mention\n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n5,000\n\n \n\n \n\n—\n\n \n\n \n\n2,850\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n7,850\n\nSubstandard\n\n \n\n—\n\n \n\n \n\n1,328\n\n \n\n \n\n139\n\n \n\n \n\n69\n\n \n\n \n\n4,129\n\n \n\n \n\n360\n\n \n\n \n\n50\n\n \n\n \n\n—\n\n \n\n \n\n6,075\n\nDoubtful\n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n385\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n385\n\nTotal Commercial\n\n \n\n59,943\n\n \n\n \n\n27,202\n\n \n\n \n\n20,612\n\n \n\n \n\n46,911\n\n \n\n \n\n66,461\n\n \n\n \n\n32,255\n\n \n\n \n\n112,924\n\n \n\n \n\n3,122\n\n \n\n \n\n369,430\n\nGross charge-offs for the year\n   ended December 31, 2025\n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n-\n\n \n\n \n\n7,165\n\n \n\n \n\n284\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n7,449\n\nReal estate loans:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nSingle-family residential\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nPayment performance\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nPerforming\n\n \n\n17,419\n\n \n\n \n\n26,174\n\n \n\n \n\n25,165\n\n \n\n \n\n103,688\n\n \n\n \n\n200,985\n\n \n\n \n\n52,627\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n426,058\n\nNonperforming\n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n193\n\n \n\n \n\n401\n\n \n\n \n\n690\n\n \n\n \n\n563\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n1,847\n\nTotal Single-family residential\n   loans\n\n \n\n17,419\n\n \n\n \n\n26,174\n\n \n\n \n\n25,358\n\n \n\n \n\n104,089\n\n \n\n \n\n201,675\n\n \n\n \n\n53,190\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n427,905\n\nGross charge-offs for the year\n   ended December 31, 2025\n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n27\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n27\n\nMulti-family residential\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nPass\n\n \n\n19,972\n\n \n\n \n\n27,195\n\n \n\n \n\n30,168\n\n \n\n \n\n18,151\n\n \n\n \n\n46,905\n\n \n\n \n\n19,915\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n162,306\n\nSpecial Mention\n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n8,666\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n8,666\n\nTotal Multi-family residential\n   loans\n\n \n\n19,972\n\n \n\n \n\n27,195\n\n \n\n \n\n30,168\n\n \n\n \n\n18,151\n\n \n\n \n\n46,905\n\n \n\n \n\n28,581\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n170,972\n\nCommercial:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nNon-owner occupied\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nPass\n\n \n\n81,898\n\n \n\n \n\n9,473\n\n \n\n \n\n41,336\n\n \n\n \n\n52,740\n\n \n\n \n\n46,575\n\n \n\n \n\n56,869\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n288,891\n\nTotal Non-owner occupied\n   loans\n\n \n\n81,898\n\n \n\n \n\n9,473\n\n \n\n \n\n41,336\n\n \n\n \n\n52,740\n\n \n\n \n\n46,575\n\n \n\n \n\n56,869\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n288,891\n\nOwner occupied\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nPass\n\n \n\n28,005\n\n \n\n \n\n15,062\n\n \n\n \n\n40,533\n\n \n\n \n\n43,567\n\n \n\n \n\n38,965\n\n \n\n \n\n36,444\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n202,576\n\nSubstandard\n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n1,840\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n1,840\n\nTotal Owner occupied\n   loans\n\n \n\n28,005\n\n \n\n \n\n15,062\n\n \n\n \n\n40,533\n\n \n\n \n\n45,407\n\n \n\n \n\n38,965\n\n \n\n \n\n36,444\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n204,416\n\nLand\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nPass\n\n \n\n18,042\n\n \n\n \n\n17,507\n\n \n\n \n\n617\n\n \n\n \n\n—\n\n \n\n \n\n4,450\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n40,616\n\nTotal Land loans\n\n \n\n18,042\n\n \n\n \n\n17,507\n\n \n\n \n\n617\n\n \n\n \n\n—\n\n \n\n \n\n4,450\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n40,616\n\nConstruction\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nPerforming\n\n \n\n632\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n632\n\nPass\n\n \n\n34,143\n\n \n\n \n\n95,801\n\n \n\n \n\n50,775\n\n \n\n \n\n22,400\n\n \n\n \n\n3,178\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n206,297\n\nSpecial Mention\n\n \n\n—\n\n \n\n \n\n343\n\n \n\n \n\n1,664\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n2,007\n\nTotal Construction loans\n\n \n\n34,775\n\n \n\n \n\n96,144\n\n \n\n \n\n52,439\n\n \n\n \n\n22,400\n\n \n\n \n\n3,178\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n208,936\n\nTotal Real Estate loans\n\n \n\n200,111\n\n \n\n \n\n191,555\n\n \n\n \n\n190,451\n\n \n\n \n\n242,787\n\n \n\n \n\n341,748\n\n \n\n \n\n175,084\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n1,341,736\n\nConsumer:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nHome equity lines of credit:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nPayment performance\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nPerforming\n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n41,279\n\n \n\n \n\n607\n\n \n\n \n\n41,886\n\nNonperforming\n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n87\n\n \n\n \n\n10\n\n \n\n \n\n97\n\nTotal Home equity lines of\n   credit\n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n41,366\n\n \n\n \n\n617\n\n \n\n \n\n41,983\n\nOther\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nPayment performance\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nPerforming\n\n \n\n—\n\n \n\n \n\n468\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n136\n\n \n\n \n\n2,278\n\n \n\n \n\n501\n\n \n\n \n\n3,383\n\nNonperforming\n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n-\n\n \n\n \n\n-\n\nTotal Other consumer\n   loans\n\n \n\n—\n\n \n\n \n\n468\n\n \n\n \n\n—\n\n \n\n \n\n-\n\n \n\n \n\n—\n\n \n\n \n\n136\n\n \n\n \n\n2,278\n\n \n\n \n\n501\n\n \n\n \n\n3,383\n\nGross charge-offs for\n   the year ended\n   December 31, 2025\n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n—\n\n \n\n \n\n-\n\nTotal loans\n\n$\n\n260,054\n\n \n\n $\n\n219,225\n\n \n\n $\n\n211,063\n\n \n\n $\n\n289,698\n\n \n\n $\n\n408,209\n\n \n\n $\n\n207,475\n\n \n\n $\n\n156,568\n\n \n\n $\n\n4,240\n\n \n\n $\n\n1,756,532\n\nTotal gross charge-offs during\n   the year ended December 31, 2025\n\n$\n\n—\n\n \n\n $\n\n—\n\n \n\n $\n\n27\n\n \n\n $\n\n7,165\n\n \n\n $\n\n284\n\n \n\n $\n\n—\n\n \n\n $\n\n—\n\n \n\n $\n\n—\n\n \n\n $\n\n7,476\n\n \n\n21\n\n[Table of Contents](#toc_page)\n\nCF BANKSHARES INC.\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)\n\n(Dollars in thousands, except per share data)\n\n \n\nDirect Financing Leases:\n\nThe following lists the components of the net investment in direct financing leases:\n\n \n\n \n\nMarch 31, 2026\n\n \n\n \n\nDecember 31, 2025\n\n \n\n \n\n(unaudited)\n\n \n\n \n\n \n\n \n\n \n\nTotal minimum lease payments to be received\n\n$\n\n \n\n1,821\n\n \n\n \n\n$\n\n \n\n2,780\n\n \n\nLess: Unearned income\n\n \n\n \n\n(43\n\n)\n\n \n\n \n\n \n\n(71\n\n)\n\nPlus: Indirect initial costs\n\n \n\n \n\n-\n\n \n\n \n\n \n\n \n\n1\n\n \n\nNet investment in direct financing leases\n\n$\n\n \n\n1,778\n\n \n\n \n\n$\n\n \n\n2,710\n\n \n\n \n\n \n\nThe following summarizes the future minimum lease payments receivable as of March 31, 2026 :\n\n \n\n2026, excluding the three months ended March 31, 2026\n\n \n\n$\n\n \n\n1,383\n\n \n\n2027\n\n \n\n \n\n \n\n402\n\n \n\n2028\n\n \n\n \n\n \n\n36\n\n \n\nTotal future minimum payments\n\n \n\n$\n\n \n\n1,821\n\n \n\n \n\nNOTE 5 – LEASES\n\nA lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration.\n\nThe leases in which the Company is the lessee are comprised of real estate property for branches and offices and for equipment with terms extending through 2034. All of our leases are classified as operating leases. Operating lease agreements are required to be recognized on the Consolidated Balance Sheets as a right-of-use (“ROU”) asset and a corresponding operating lease liability. The Company does not have any leases classified as finance leases.\n\nThe calculated amount of the ROU assets and lease liabilities are impacted by the length of the lease term and the discount rate used to present value the minimum lease payments. The Company’s lease agreements often include one or more options to renew at the Company’s discretion which were considered, as applicable, in the calculation of the ROU assets and lease liabilities. If, at lease inception, the Company considers the exercising of a renewal option to be reasonably certain, the Company will include the extended term in the calculation of the ROU asset and lease liability. The Company uses the discount rate implicit in the lease whenever this rate is readily determinable. As this rate is not readily determinable in our operating leases, the Company utilizes its incremental borrowing rate at lease inception, on a collateralized basis, over a similar term. At March 31, 2026, the weighted-average remaining lease term for the Company’s operating leases was 7.8 years and the weighted-average discount rate was 7.27%. At December 31, 2025, the weighted-average remaining lease term for the Company’s operating leases was 8.2 years and the weighted-average discount rate was 7.43%.\n\nThe Company’s operating lease costs were $176 for the three months ended March 31, 2026, and $162 for the three months ended March 31, 2025. The variable lease costs totaled $188 for the three months ended March 31, 2026 and $198 for the three months ended March 31, 2025. As the Company elected not to separate lease and non-lease components for all classes of underlying assets and instead to account for them as a single lease component, the variable lease cost primarily represents variable payments such as common area maintenance and utilities.\n\nFuture minimum operating lease payments as of March 31, 2026 are as follows:\n\n \n\n2026, excluding the three months ended March 31, 2026\n\n$\n\n \n\n728\n\n \n\n2027\n\n \n\n \n\n950\n\n \n\n2028\n\n \n\n \n\n971\n\n \n\n2029\n\n \n\n \n\n993\n\n \n\n2030\n\n \n\n \n\n1,015\n\n \n\nThereafter\n\n \n\n \n\n3,129\n\n \n\nTotal future minimum rental commitments\n\n \n\n \n\n7,786\n\n \n\nLess - amounts representing interest\n\n \n\n \n\n(1,715\n\n)\n\nTotal operating lease liabilities\n\n$\n\n \n\n6,071\n\n \n\n \n\n22\n\n[Table of Contents](#toc_page)\n\nCF BANKSHARES INC.\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)\n\n(Dollars in thousands, except per share data)\n\n \n\n \n\nNOTE 6 - FAIR VALUE\n\nFair value is the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values:\n\nLevel 1 – Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.\n\nLevel 2 – Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data.\n\nLevel 3 – Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.\n\nThe Company used the following methods and significant assumptions to estimate the fair value of each type of asset and liability:\n\nSecurities available for sale: The fair value of securities available for sale is determined using pricing models that vary based on asset class and include available trade, bid and other market information or matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2).\n\nDerivatives: The fair value of derivatives, which includes interest rate lock commitments and interest rate swaps, is based on valuation models using observable market data as of the measurement date (Level 2).\n\nLoans held for sale: Loans held for sale are carried at fair value, as determined by outstanding commitments from third-party investors (Level 2).\n\nAssets and liabilities measured at fair value on a recurring basis, including financial assets and liabilities for which the Company has elected the fair value option, are summarized below:\n\n \n\n \n\n \n\nFair Value\nMeasurements at\nMarch 31, 2026\nusing Significant\nOther Observable\nInputs\n\n \n\n \n\n \n\n(Level 2)\n\n \n\n \n\n \n\n(unaudited)\n\n \n\nFinancial Assets:\n\n \n\n \n\n \n\n \n\nSecurities available for sale:\n\n \n\n \n\n \n\n \n\nCorporate debt\n\n \n\n$\n\n \n\n8,300\n\n \n\nIssued by U.S. government-sponsored entities and agencies:\n\n \n\n \n\n \n\n \n\nU.S. Treasury\n\n \n\n \n\n \n\n1,000\n\n \n\nCollateralized mortgage obligations\n\n \n\n \n\n \n\n8,095\n\n \n\nTotal securities available for sale\n\n \n\n$\n\n \n\n17,395\n\n \n\nLoans held for sale\n\n \n\n$\n\n \n\n3,634\n\n \n\nDerivative assets\n\n \n\n$\n\n \n\n3,231\n\n \n\nFinancial Liabilities:\n\n \n\n \n\n \n\n \n\nDerivative liabilities\n\n \n\n$\n\n \n\n3,231\n\n \n\n \n\n23\n\n[Table of Contents](#toc_page)\n\nCF BANKSHARES INC.\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)\n\n(Dollars in thousands, except per share data)\n\n \n\n \n\n \n\n \n\nFair Value\nMeasurements at\nDecember 31, 2025\nusing Significant\nOther Observable\nInputs\n\n \n\n \n\n \n\n(Level 2)\n\n \n\nFinancial Assets:\n\n \n\n \n\n \n\n \n\nSecurities available for sale:\n\n \n\n \n\n \n\n \n\nCorporate debt\n\n \n\n$\n\n \n\n8,400\n\n \n\nIssued by U.S. government-sponsored entities and agencies:\n\n \n\n \n\n \n\n \n\nU.S. Treasury\n\n \n\n \n\n \n\n1,000\n\n \n\nCollateralized mortgage obligations\n\n \n\n \n\n \n\n8,096\n\n \n\nTotal securities available for sale\n\n \n\n$\n\n \n\n17,496\n\n \n\nLoans held for sale\n\n \n\n$\n\n \n\n5,611\n\n \n\nDerivative assets\n\n \n\n$\n\n \n\n3,578\n\n \n\nFinancial Liabilities:\n\n \n\n \n\n \n\n \n\nDerivative liabilities\n\n \n\n$\n\n \n\n3,578\n\n \n\n \n\nThe Company had no assets or liabilities measured at fair value on a recurring basis that were measured using Level 1 or Level 3 inputs at March 31, 2026 or December 31, 2025. There were no transfers of assets or liabilities measured at fair value between levels during the periods ended March 31, 2026 and December 31, 2025.\n\nAssets and liabilities measured at fair value on a non-recurring basis at March 31, 2026 are summarized below:\n\n \n\nFair Value Measurements at March 31, 2026 Using\n\nSignificant Unobservable Inputs (Level 3)\n\n(unaudited)\n\nIndividually Evaluated loans:\n\n \n\n \n\nCommercial\n\n$\n\n5,264\n\nReal Estate:\n\n \n\n \n\nCommercial:\n\n \n\n \n\nOwner occupied\n\n \n\n294\n\nTotal individually evaluated loans\n\n$\n\n5,558\n\nAssets and liabilities measured at fair value on a non-recurring basis at December 31, 2025 are summarized below.\n\n \n\nFair Value Measurements at December 31, 2025 Using\n\nSignificant Unobservable Inputs (Level 3)\n\n \n\n \n\n \n\nIndividually Evaluated loans:\n\n \n\n \n\nCommercial\n\n$\n\n595\n\nReal Estate:\n\n \n\n \n\nCommercial:\n\n \n\n \n\nOwner occupied\n\n \n\n313\n\nTotal individually evaluated loans\n\n$\n\n908\n\nThere were no charge offs on individually evaluated collateral dependent loans during the three months ended March 31, 2026 or 2025.\n\nThe following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at March 31, 2026:\n\n \n\n24\n\n[Table of Contents](#toc_page)\n\nCF BANKSHARES INC.\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)\n\n(Dollars in thousands, except per share data)\n\n \n\n \n\n \n\n \n\nFair Value\n\n \n\nValuation Technique(s)\n\n \n\nUnobservable Inputs\n\n \n\nWeighted Average\n\nIndividually evaluated loans:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nCommercial\n\n \n\n$\n\n5,264\n\n \n\nComparable sales approach\n\n \n\nAdjustment for differences between the stated value and net realizable value\n\n \n\n4.00%\n\nReal estate:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nCommercial:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nOwner occupied\n\n \n\n \n\n294\n\n \n\nComparable sales approach\n\n \n\nAdjustment for differences between the comparable market transactions\n\n \n\n4.00%\n\n \n\nThe following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at December 31, 2025:\n\n \n\n \n\n \n\n \n\nFair Value\n\n \n\nValuation Technique(s)\n\n \n\nUnobservable Inputs\n\n \n\nWeighted Average\n\nIndividually evaluated loans:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nCommercial\n\n \n\n$\n\n595\n\n \n\nComparable sales approach\n\n \n\nAdjustment for differences between the stated value and net realizable value\n\n \n\n8.00%\n\nReal estate:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nCommercial:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nOwner occupied\n\n \n\n \n\n313\n\n \n\nComparable sales approach\n\n \n\nAdjustment for differences between the comparable market transactions\n\n \n\n4.00%\n\n \n\nFinancial Instruments Recorded Using Fair Value Option\n\nThe Company has elected the fair value option for loans held for sale. These loans are intended for sale and the Company believes that the fair value is the best indicator of the resolution of these loans. Interest income is recorded based on the contractual terms of the loan and in accordance with the Company’s policy on loans held for investment. None of these loans were 90 days or more past due or on nonaccrual as of March 31, 2026 or December 31, 2025.\n\nAs of March 31, 2026 and December 31, 2025, the aggregate fair value, contractual balance and gain or loss on loans held for sale were as follows:\n\n \n\n \n\n \n\nMarch 31, 2026\n\n \n\n \n\nDecember 31, 2025\n\n \n\n \n\n \n\n(unaudited)\n\n \n\n \n\n \n\n \n\n \n\nAggregate fair value\n\n \n\n$\n\n \n\n3,634\n\n \n\n \n\n$\n\n \n\n5,611\n\n \n\nContractual balance\n\n \n\n \n\n \n\n3,634\n\n \n\n \n\n \n\n \n\n5,611\n\n \n\nGain (loss)\n\n \n\n$\n\n \n\n—\n\n \n\n \n\n$\n\n \n\n—\n\n \n\n \n\nThe total amount of gains and losses from changes in fair value included in earnings for the three months ended March 31, 2026 and 2025 for loans held for sale were:\n\n \n\n \n\n \n\nThree months ended March 31,\n\n \n\n \n\n \n\n2026\n\n \n\n \n\n2025\n\n \n\n \n\n \n\n(unaudited)\n\n \n\nInterest income\n\n \n\n$\n\n \n\n50\n\n \n\n \n\n$\n\n \n\n35\n\n \n\nInterest expense\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n—\n\n \n\nChange in fair value\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n—\n\n \n\nTotal change in fair value\n\n \n\n$\n\n \n\n50\n\n \n\n \n\n$\n\n \n\n35\n\n \n\n \n\n25\n\n[Table of Contents](#toc_page)\n\nCF BANKSHARES INC.\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)\n\n(Dollars in thousands, except per share data)\n\n \n\nThe carrying amounts and estimated fair values of financial instruments at March 31, 2026 were as follows:\n\n \n\n \n\n \n\nFair Value Measurements at March 31, 2026 Using:\n\n \n\n \n\n \n\nCarrying\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n(unaudited)\n\n \n\nValue\n\n \n\n \n\nLevel 1\n\n \n\n \n\nLevel 2\n\n \n\n \n\nLevel 3\n\n \n\n \n\nTotal\n\n \n\nFinancial Assets\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nCash and cash equivalents\n\n \n\n$\n\n \n\n267,759\n\n \n\n \n\n$\n\n \n\n267,759\n\n \n\n \n\n$\n\n \n\n—\n\n \n\n \n\n$\n\n \n\n—\n\n \n\n \n\n$\n\n \n\n267,759\n\n \n\nInterest-bearing deposits in other financial\n   institutions\n\n \n\n \n\n \n\n100\n\n \n\n \n\n \n\n \n\n100\n\n \n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n100\n\n \n\nSecurities available for sale\n\n \n\n \n\n \n\n17,395\n\n \n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n17,395\n\n \n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n17,395\n\n \n\nLoans held for sale\n\n \n\n \n\n \n\n3,634\n\n \n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n3,634\n\n \n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n3,634\n\n \n\nLoans and leases, net\n\n \n\n \n\n \n\n1,761,262\n\n \n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n1,736,346\n\n \n\n \n\n \n\n \n\n1,736,346\n\n \n\nFHLB and FRB stock\n\n \n\n \n\n \n\n8,364\n\n \n\n \n\n \n\nn/a\n\n \n\n \n\n \n\nn/a\n\n \n\n \n\n \n\nn/a\n\n \n\n \n\n \n\nn/a\n\n \n\nAccrued interest receivable\n\n \n\n \n\n \n\n8,294\n\n \n\n \n\n \n\n \n\n312\n\n \n\n \n\n \n\n \n\n164\n\n \n\n \n\n \n\n \n\n7,818\n\n \n\n \n\n \n\n \n\n8,294\n\n \n\nDerivative assets\n\n \n\n \n\n \n\n3,231\n\n \n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n3,231\n\n \n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n3,231\n\n \n\nFinancial Liabilities\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nDeposits\n\n \n\n$\n\n \n\n(1,809,442\n\n)\n\n \n\n$\n\n \n\n(1,088,205\n\n)\n\n \n\n$\n\n \n\n(721,215\n\n)\n\n \n\n$\n\n \n\n—\n\n \n\n \n\n$\n\n \n\n(1,809,420\n\n)\n\nFHLB advances and other borrowings\n\n \n\n \n\n \n\n(100,973\n\n)\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n(105,471\n\n)\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n(105,471\n\n)\n\nAdvances by borrowers for taxes and\n   insurance\n\n \n\n \n\n \n\n(1,292\n\n)\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n(1,292\n\n)\n\n \n\n \n\n \n\n(1,292\n\n)\n\nSubordinated debentures\n\n \n\n \n\n \n\n(15,048\n\n)\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n(17,413\n\n)\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n(17,413\n\n)\n\nAccrued interest payable\n\n \n\n \n\n \n\n(2,839\n\n)\n\n \n\n \n\n \n\n(276\n\n)\n\n \n\n \n\n \n\n(2,563\n\n)\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n(2,839\n\n)\n\nDerivative liabilities\n\n \n\n \n\n \n\n(3,231\n\n)\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n(3,231\n\n)\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n(3,231\n\n)\n\nThe carrying amounts and estimated fair values of financial instruments at December 31, 2025 were as follows:\n\n \n\n \n\n \n\nFair Value Measurements at December 31, 2025 Using:\n\n \n\n \n\n \n\nCarrying\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nValue\n\n \n\n \n\nLevel 1\n\n \n\n \n\nLevel 2\n\n \n\n \n\nLevel 3\n\n \n\n \n\nTotal\n\n \n\nFinancial Assets\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nCash and cash equivalents\n\n \n\n$\n\n \n\n258,972\n\n \n\n \n\n$\n\n \n\n258,972\n\n \n\n \n\n$\n\n \n\n—\n\n \n\n \n\n$\n\n \n\n—\n\n \n\n \n\n$\n\n \n\n258,972\n\n \n\nInterest-bearing deposits in other financial\n   institutions\n\n \n\n \n\n \n\n100\n\n \n\n \n\n \n\n \n\n100\n\n \n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n100\n\n \n\nSecurities available for sale\n\n \n\n \n\n \n\n17,496\n\n \n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n17,496\n\n \n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n17,496\n\n \n\nLoans held for sale\n\n \n\n \n\n \n\n5,611\n\n \n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n5,611\n\n \n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n5,611\n\n \n\nLoans and leases, net\n\n \n\n \n\n \n\n1,738,854\n\n \n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n1,725,771\n\n \n\n \n\n \n\n \n\n1,725,771\n\n \n\nFHLB and FRB stock\n\n \n\n \n\n \n\n8,354\n\n \n\n \n\n \n\nn/a\n\n \n\n \n\n \n\nn/a\n\n \n\n \n\n \n\nn/a\n\n \n\n \n\n \n\nn/a\n\n \n\nAccrued interest receivable\n\n \n\n \n\n \n\n8,655\n\n \n\n \n\n \n\n \n\n212\n\n \n\n \n\n \n\n \n\n107\n\n \n\n \n\n \n\n \n\n8,336\n\n \n\n \n\n \n\n \n\n8,655\n\n \n\nDerivative assets\n\n \n\n \n\n \n\n3,578\n\n \n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n3,578\n\n \n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n3,578\n\n \n\nFinancial Liabilities\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nDeposits\n\n \n\n$\n\n \n\n(1,780,689\n\n)\n\n \n\n$\n\n \n\n(1,084,276\n\n)\n\n \n\n$\n\n \n\n(697,492\n\n)\n\n \n\n$\n\n \n\n—\n\n \n\n \n\n$\n\n \n\n(1,781,768\n\n)\n\nFHLB advances and other borrowings\n\n \n\n \n\n \n\n(100,964\n\n)\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n(106,248\n\n)\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n(106,248\n\n)\n\nAdvances by borrowers for taxes and\n   insurance\n\n \n\n \n\n \n\n(2,523\n\n)\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n(2,523\n\n)\n\n \n\n \n\n \n\n(2,523\n\n)\n\nSubordinated debentures\n\n \n\n \n\n \n\n(15,039\n\n)\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n(17,550\n\n)\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n(17,550\n\n)\n\nAccrued interest payable\n\n \n\n \n\n \n\n(2,513\n\n)\n\n \n\n \n\n \n\n(377\n\n)\n\n \n\n \n\n \n\n(2,136\n\n)\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n(2,513\n\n)\n\nDerivative liabilities\n\n \n\n \n\n \n\n(3,578\n\n)\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n(3,578\n\n)\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n(3,578\n\n)\n\n \n\n26\n\n[Table of Contents](#toc_page)\n\nCF BANKSHARES INC.\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)\n\n(Dollars in thousands, except per share data)\n\n \n\nNOTE 7 – SUBORDINATED DEBENTURES\n\n2003 Subordinated debentures:\n\nIn December 2003, Central Federal Capital Trust I, a trust formed by the Holding Company, closed a pooled private offering of 5,000 trust preferred securities with a liquidation amount of $1 per security. The Holding Company issued $5,155 of subordinated debentures to the trust in exchange for ownership of all of the common stock of the trust and the proceeds of the preferred securities sold by the trust. The Holding Company is not considered the primary beneficiary of this trust (which is classified as a variable interest entity); therefore, the trust is not consolidated in the Company’s financial statements, but rather the subordinated debentures are shown as a liability. The Holding Company’s investment in the common stock of the trust was $155 and is included in other assets.\n\nThe Holding Company may redeem the subordinated debentures, in whole or in part, in a principal amount with integral multiples of $1, at 100% of the principal amount, plus accrued and unpaid interest. The subordinated debentures mature on December 30, 2033. The subordinated debentures are also redeemable in whole or in part from time to time, upon the occurrence of specific events defined within the trust indenture. The Holding Company has the option to defer interest payments on the subordinated debentures for a period not to exceed five consecutive years. As a result, there are no required principal payments on the subordinated debentures over the next five years.\n\nThe rate of interest on the subordinated debentures resets quarterly to the three-month Secured Overnight Financing Rate (SOFR) plus 3.112%, which was 6.81% at March 31, 2026 and 6.80% at December 31, 2025. There were no unamortized debt issuance costs at March 31, 2026. At March 31, 2026 and December 31, 2025, the balance of the subordinated notes was $5,155.\n\n2018 Fixed-to-floating rate subordinated notes:\n\nIn December 2018, the Holding Company entered into subordinated note purchase agreements with certain qualified institutional buyers and completed a private placement of $10 million of fixed-to-floating rate subordinated notes with a maturity date of December 30, 2028. After payment of approximately $388 of debt issuance costs, the Holding Company’s net proceeds were approximately $9,612.\n\nThe interest rate resets quarterly to an interest rate equal to the then current three-month SOFR (but not less than zero) plus 4.402%, which was 8.10% at March 31, 2026 and 8.09% at December 31, 2025. Interest is payable quarterly in arrears on March 30, June 30, September 30, and December 30 of each year. The Holding Company may, at its option, redeem the notes beginning on December 30, 2023 and on any scheduled interest payment date thereafter. At March 31, 2026 and December 31, 2025, the balance of the subordinated notes, net of unamortized debt issuance costs, was $9,893 and $9,884, respectively.\n\nNOTE 8 – FHLB ADVANCES AND OTHER DEBT\n\nFederal Home Loan Bank (“FHLB”) advances and other debt were as follows:\n\n \n\n \n\nWeighted\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nAverage Rate\n\n \n\n \n\nMarch 31, 2026\n\n \n\n \n\nDecember 31, 2025\n\n \n\n \n\n \n\n \n\n \n\n(unaudited)\n\n \n\n \n\n \n\n \n\n \n\nFHLB fixed rate advances:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nMaturities:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n2026\n\n \n\n1.45\n\n%\n\n \n\n$\n\n \n\n16,000\n\n \n\n \n\n$\n\n \n\n16,000\n\n \n\n2027\n\n \n\n3.88\n\n%\n\n \n\n \n\n \n\n12,500\n\n \n\n \n\n \n\n \n\n12,500\n\n \n\n2028\n\n \n\n1.69\n\n%\n\n \n\n \n\n \n\n17,000\n\n \n\n \n\n \n\n \n\n17,000\n\n \n\n2029\n\n \n\n3.94\n\n%\n\n \n\n \n\n \n\n12,500\n\n \n\n \n\n \n\n \n\n12,500\n\n \n\nTotal FHLB fixed rate advances\n\n \n\n \n\n \n\n$\n\n \n\n58,000\n\n \n\n \n\n$\n\n \n\n58,000\n\n \n\nVariable rate other debt:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nHolding Company credit facility\n\n \n\n6.00\n\n%\n\n \n\n \n\n \n\n42,973\n\n \n\n \n\n \n\n \n\n42,964\n\n \n\nTotal\n\n \n\n \n\n \n\n$\n\n \n\n100,973\n\n \n\n \n\n$\n\n \n\n100,964\n\n \n\n \n\n27\n\n[Table of Contents](#toc_page)\n\nCF BANKSHARES INC.\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)\n\n(Dollars in thousands, except per share data)\n\n \n\n \n\nEach FHLB advance is payable at its maturity date, with a prepayment penalty for fixed-rate advances.\n\nThe FHLB advances were collateralized as follows:\n\n \n\n \n\n \n\nMarch 31, 2026\n\n \n\nDecember 31, 2025\n\n \n\n \n\n(unaudited)\n\n \n\n \n\n \n\nSingle-family mortgage loans\n\n \n\n$\n\n285,610\n\n \n\n$\n\n291,458\n\nMulti-family mortgage loans\n\n \n\n \n\n58,444\n\n \n\n \n\n72,737\n\nCommercial Real Estate loans (1-4 family)\n\n \n\n \n\n9,053\n\n \n\n \n\n10,244\n\nHome equity lines of credit\n\n \n\n \n\n3,513\n\n \n\n \n\n2,845\n\nTotal\n\n \n\n$\n\n356,620\n\n \n\n$\n\n377,284\n\nBased on the collateral pledged to the FHLB, CFBank was eligible to borrow up to a total of $250,833 from the FHLB at March 31, 2026 inclusive of the amount outstanding.\n\nThere were no outstanding borrowings from the Federal Reserve Bank (“FRB”) at March 31, 2026 and December 31, 2025.\n\nAssets pledged as collateral with the FRB were as follows:\n\n \n\n \n\n \n\nMarch 31, 2026\n\n \n\nDecember 31, 2025\n\n \n\n \n\n(unaudited)\n\n \n\n \n\n \n\nCommercial Loans\n\n \n\n$\n\n30,410\n\n \n\n$\n\n26,362\n\nCommercial Real Estate loans\n\n \n\n \n\n144,323\n\n \n\n \n\n136,996\n\nTotal\n\n \n\n$\n\n174,733\n\n \n\n$\n\n163,358\n\nBased on the collateral pledged, CFBank was eligible to borrow up to $137,217 from the FRB at March 31, 2026.\n\nAt March 31, 2026, CFBank had availability in unused lines of credit at two commercial banks in amounts of $50,000 and $15,000. There were no outstanding borrowings on either line at March 31, 2026 and December 31, 2025. Interest on any principal amounts outstanding from time to time under these lines accrues daily at a variable rate based on the commercial bank’s cost of funds and current market returns.\n\nThe Holding Company has a credit facility with a third-party bank. Prior to April 30, 2025, the credit facility had a borrowing limit of $35,000 with a revolving feature until May 21, 2024, at which time the outstanding balance was converted to a 10-year term note on a graduated 10-year amortization. Borrowings on the credit facility bore interest at a fixed rate of 3.85% until May 21, 2026, at which time the interest rate would convert to a floating rate equal to PRIME with a floor of 3.25%. Effective April 30, 2025, an additional $10,000 revolving line of credit was added to the credit facility and the interest rate was amended to reset the fixed rate to 6.00% until May 21, 2026, at which time the rate will convert to a floating rate equal to PRIME. The $10,000 revolving line of credit matures on April 30, 2027. The revolving line of credit provided an additional $10,000 that was injected as additional Tier 1 capital into CFBank during the second quarter of 2025. At March 31, 2026, the Company had an outstanding balance, net of unamortized debt issuance costs, of $42,973 on the facility.\n\nContractual maturities of the Holding Company credit facilities as of March 31, 2026 were as follows:\n\n \n\n2026, excluding the three months ended March 31, 2026\n\n$\n\n \n\n1,750\n\n \n\n2027\n\n \n\n \n\n12,625\n\n \n\n2028\n\n \n\n \n\n2,625\n\n \n\n2029\n\n \n\n \n\n3,500\n\n \n\n2030\n\n \n\n \n\n3,500\n\n \n\nThereafter\n\n \n\n \n\n19,250\n\n \n\nLess - unamortized debt issuance costs\n\n \n\n \n\n(277\n\n)\n\n \n\n$\n\n \n\n42,973\n\n \n\n \n\n28\n\n[Table of Contents](#toc_page)\n\nCF BANKSHARES INC.\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)\n\n(Dollars in thousands, except per share data)\n\n \n\nNOTE 9 – STOCK-BASED COMPENSATION\n\nThe Company has a stock-based compensation plan, as described below, under which awards are outstanding and may be granted in the future. Total compensation cost that has been charged against income for the plan totaled $366 for the three months ended March 31, 2026 and $303 for the three months ended March 31, 2025. The total income tax effect was $77 for the three months ended March 31, 2026 and $64 for the three months ended March 31, 2025.\n\nThe Company’s 2019 Equity Incentive Plan (the “2019 Plan”) was approved by stockholders on May 29, 2019 and replaced the Company’s 2009 Equity Compensation Plan (the “2009 Plan”). The 2019 Plan authorized up to 300,000 shares (plus any shares that are subject to grants under the 2009 Plan and that are later forfeited or expire) to be awarded pursuant to stock options, stock appreciation rights, restricted stock or restricted stock units. An amendment to the Company’s 2019 Plan was approved by stockholders on May 29, 2024 to increase the number of shares of common stock reserved for awards thereunder from 300,000 to 500,000. There were 39,074 shares remaining available for awards of stock options, stock appreciation rights, restricted stock or restricted stock units under the 2019 Plan at March 31, 2026.\n\nStock Options:\n\nThe 2019 Plan permits the grant of stock options to directors, officers and employees of the Holding Company and CFBank. Stock option awards are granted with an exercise price equal to the market price of the Company’s common stock on the date of grant, generally have vesting periods ranging from one year to three years, and are exercisable for ten years from the date of grant. Unvested stock options immediately vest upon a change of control.\n\nThere were no stock options outstanding at March 31, 2026. There were no stock options granted or exercised during the three months ended March 31, 2026 and March 31, 2025.\n\nRestricted Stock Awards:\n\nThe 2019 Plan also permits the grant of restricted stock awards to directors, officers and employees. Compensation is recognized over the vesting period of the awards based on the fair value of the stock on the grant date. The fair value of the stock is determined using the closing share price on the date of grant and shares generally have vesting periods of one year to three years. There were 90,200 shares of restricted stock granted under the 2019 Plan during the three months ended March 31, 2026. There were 79,425 shares of restricted stock granted during the three months ended March 31, 2025.\n\nA summary of changes in the Company’s nonvested restricted stock awards as of March 31, 2026 follows (unaudited):\n\n \n\nNonvested Shares\n\n \n\nShares\n\n \n\n \n\nWeighted Average Grant-Date Fair Value\n\n \n\nNonvested at January 1, 2026\n\n \n\n \n\n145,818\n\n \n\n \n\n$\n\n \n\n20.96\n\n \n\nGranted\n\n \n\n \n\n90,200\n\n \n\n \n\n \n\n \n\n30.52\n\n \n\nVested\n\n \n\n \n\n(44,411\n\n)\n\n \n\n \n\n \n\n21.35\n\n \n\nForfeited\n\n \n\n \n\n(3,385\n\n)\n\n \n\n \n\n \n\n24.26\n\n \n\nNonvested at March 31, 2026\n\n \n\n \n\n188,222\n\n \n\n \n\n$\n\n \n\n25.39\n\n \n\n \n\n \n\nAs of March 31, 2026 and 2025, the unrecognized compensation cost related to nonvested restricted stock awards granted under the 2019 Plan was $4,261 and $3,078, respectively.\n\nThere were 3,385 shares of restricted stock forfeited during the three months ended March 31, 2026, and 170 shares of restricted stock forfeited during the three months ended March 31, 2025. There were 44,411 shares of restricted stock that vested during the three months ended March 31, 2026, and 29,288 shares of restricted stock that vested during the three months ended March 31, 2025.\n\nNOTE 10 – REGULATORY CAPITAL MATTERS\n\nCFBank is subject to regulatory capital requirements administered by federal banking agencies. Prompt corrective action regulations involve quantitative measures of assets, liabilities, and certain off balance-sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can initiate regulatory action.\n\n29\n\n[Table of Contents](#toc_page)\n\nCF BANKSHARES INC.\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)\n\n(Dollars in thousands, except per share data)\n\n \n\nPrompt corrective action regulations provide five classifications for banking organizations: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If a banking organization is classified as adequately capitalized, regulatory approval is required to accept brokered deposits. If a banking organization is classified as undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required.\n\nIn July 2013, the Holding Company’s primary federal regulator, the Board of Governors of the Federal Reserve System (the “Federal Reserve”), published final rules (the “Basel III Capital Rules”) establishing a new comprehensive capital framework for U.S. banking organizations. The rules implement the Basel Committee's December 2010 framework known as “Basel III” for strengthening international capital standards as well as certain provisions of the Dodd-Frank Act. In order to avoid limitations on capital distributions, such as dividend payments and certain bonus payments to executive officers, the Basel III Capital Rules require insured financial institutions to hold a capital conservation buffer of common equity tier 1 capital above the minimum risk-based capital requirements. The capital conservation buffer consists of an additional amount of common equity equal to 2.5% of risk-weighted assets. Quantitative measures established by the Basel III Capital Rules to ensure capital adequacy require the maintenance of minimum amounts and ratios of Common Equity Tier 1 capital, Tier 1 capital and Total capital, as defined in the regulations, to risk-weighted assets, and of Tier 1 capital to adjusted quarterly average assets (“Leverage Ratio”).\n\nThe Basel III Capital Rules require CFBank to maintain: 1) a minimum ratio of Common Equity Tier 1 capital to risk-weighted assets of 4.5%, plus a 2.5% “capital conservation buffer” (resulting in a minimum ratio of Common Equity Tier 1 capital to risk-weighted assets of 7.0%); 2) a minimum ratio of Tier 1 capital to risk-weighted assets of 6.0%, plus the capital conservation buffer (resulting in a minimum Tier 1 capital ratio of 8.5%); 3) a minimum ratio of Total capital to risk-weighted assets of 8.0%, plus the capital conservation buffer (resulting in a minimum Total capital ratio of 10.5%); and 4) a minimum Leverage Ratio of 4.0%.\n\nThe capital conservation buffer is designed to absorb losses during periods of economic stress. Failure to maintain the minimum Common Equity Tier 1 capital ratio plus the capital conservation buffer will result in potential restrictions on a banking institution’s ability to pay dividends, repurchase stock and/or pay discretionary compensation to its employees.\n\nAs of March 31, 2026 and December 31, 2025, based on the computations for the Call Reports (FFIEC 051 Consolidated Reports of Condition and Income) filed by CFBank with the FRB, CFBank was categorized as \"well capitalized\" under the regulatory framework for prompt corrective action. The following tables present actual and required capital ratios as of March 31, 2026 and December 31, 2025 for CFBank under the Basel III Capital Rules. Capital levels required to be considered well capitalized are based upon prompt corrective action regulations, as amended to reflect the changes under the Basel III Capital Rules. Capital levels are presented for CFBank only as the Holding Company is exempt from quarterly reporting of capital levels on a consolidated basis.\n\n \n\n \n\nActual\n\n \n\n \n\nMinimum Capital\nRequired-Basel III\n\n \n\n \n\nTo Be Well Capitalized\nUnder Applicable\nRegulatory Capital\nStandards\n\n \n\n \n\nAmount\n\n \n\n \n\nRatio\n\n \n\n \n\nAmount\n\n \n\n \n\nRatio (1)\n\n \n\n \n\nAmount\n\n \n\n \n\nRatio\n\n \n\nMarch 31, 2026\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nTotal Capital to risk weighted assets\n\n$\n\n \n\n265,691\n\n \n\n \n\n \n\n15.15\n\n%\n\n \n\n$\n\n \n\n184,203\n\n \n\n \n\n \n\n10.50\n\n%\n\n \n\n$\n\n \n\n175,431\n\n \n\n \n\n \n\n10.00\n\n%\n\nTier 1 (Core) Capital to risk weighted assets\n\n \n\n \n\n244,715\n\n \n\n \n\n \n\n13.95\n\n%\n\n \n\n \n\n \n\n149,117\n\n \n\n \n\n \n\n8.50\n\n%\n\n \n\n \n\n \n\n140,345\n\n \n\n \n\n \n\n8.00\n\n%\n\nCommon equity tier 1 capital to risk-weighted\n   assets\n\n \n\n \n\n244,715\n\n \n\n \n\n \n\n13.95\n\n%\n\n \n\n \n\n \n\n122,802\n\n \n\n \n\n \n\n7.00\n\n%\n\n \n\n \n\n \n\n114,030\n\n \n\n \n\n \n\n6.50\n\n%\n\nTier 1 (Core) Capital to adjusted total assets\n   (Leverage Ratio)\n\n \n\n \n\n244,715\n\n \n\n \n\n \n\n11.76\n\n%\n\n \n\n \n\n \n\n83,218\n\n \n\n \n\n \n\n4.00\n\n%\n\n \n\n \n\n \n\n104,023\n\n \n\n \n\n \n\n5.00\n\n%\n\n \n\n(1) Ratios include 2.5% capital conservation buffer.\n\n \n\n30\n\n[Table of Contents](#toc_page)\n\nCF BANKSHARES INC.\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)\n\n(Dollars in thousands, except per share data)\n\n \n\n \n\n \n\nActual\n\n \n\n \n\nMinimum Capital\nRequired-Basel III\n\n \n\n \n\nTo Be Well Capitalized\nUnder Applicable\nRegulatory Capital\nStandards\n\n \n\n \n\nAmount\n\n \n\n \n\nRatio\n\n \n\n \n\nAmount\n\n \n\n \n\nRatio (1)\n\n \n\n \n\nAmount\n\n \n\n \n\nRatio\n\n \n\nDecember 31, 2025\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nTotal Capital to risk weighted assets\n\n$\n\n \n\n260,801\n\n \n\n \n\n \n\n15.02\n\n%\n\n \n\n$\n\n \n\n182,309\n\n \n\n \n\n \n\n10.50\n\n%\n\n \n\n$\n\n \n\n173,628\n\n \n\n \n\n \n\n10.00\n\n%\n\nTier 1 (Core) Capital to risk weighted assets\n\n \n\n \n\n240,413\n\n \n\n \n\n \n\n13.85\n\n%\n\n \n\n \n\n \n\n147,583\n\n \n\n \n\n \n\n8.50\n\n%\n\n \n\n \n\n \n\n138,902\n\n \n\n \n\n \n\n8.00\n\n%\n\nCommon equity tier 1 capital to risk-weighted\n   assets\n\n \n\n \n\n240,413\n\n \n\n \n\n \n\n13.85\n\n%\n\n \n\n \n\n \n\n121,539\n\n \n\n \n\n \n\n7.00\n\n%\n\n \n\n \n\n \n\n112,858\n\n \n\n \n\n \n\n6.50\n\n%\n\nTier 1 (Core) Capital to adjusted total assets\n   (Leverage Ratio)\n\n \n\n \n\n240,413\n\n \n\n \n\n \n\n11.40\n\n%\n\n \n\n \n\n \n\n84,391\n\n \n\n \n\n \n\n4.00\n\n%\n\n \n\n \n\n \n\n105,489\n\n \n\n \n\n \n\n5.00\n\n%\n\n \n\n(1) Ratios include 2.5% capital conservation buffer.\n\n \n\nCFBank converted from a mutual to a stock institution in 1998, and a “liquidation account” was established in the amount of $14,300, which was the net worth reported in the conversion prospectus. The liquidation account represents a calculated amount for the purposes described below, and it does not represent actual funds included in the Consolidated Financial Statements of the Company. Eligible depositors who have maintained their accounts, less annual reductions to the extent they have reduced their deposits, would be entitled to a priority distribution from this account if CFBank liquidated and its assets exceeded its liabilities. Dividends may not reduce CFBank’s stockholder’s equity below the required liquidation account balance.\n\nDividend Restrictions:\n\nBanking regulations require us to maintain certain capital levels and may limit the dividends paid by CFBank to the Holding Company or by the Holding Company to stockholders. The ability of the Holding Company to pay dividends on its stock is dependent upon the amount of cash and liquidity available at the Holding Company level, as well as the receipt of dividends and other distributions from CFBank to the extent necessary to fund such dividends. The Holding Company is a legal entity that is separate and distinct from CFBank, which has no obligation to make any dividends or other funds available for the payment of dividends by the Holding Company. The Holding Company also is subject to various legal and regulatory policies and guidelines impacting the Holding Company’s ability to pay dividends on its stock. In addition, the Holding Company’s ability to pay dividends on its stock is conditioned upon the payment, on a current basis, of quarterly interest payments on the subordinated debentures underlying the Company’s trust preferred securities. Finally, under the terms of the Holding Company’s fixed-to-floating rate subordinated debt, the Holding Company’s ability to pay dividends on its stock is conditioned upon the Holding Company continuing to make required principal and interest payments, and not incurring an event of default, with respect to the subordinated debt.\n\nAdditionally, CFBank does not intend to make distributions to the Holding Company that would result in a recapture of any portion of its thrift bad debt reserve as discussed in Note 12 - Income Taxes.\n\nNOTE 11 – DERIVATIVE INSTRUMENTS\n\nInterest-rate swaps:\n\nCFBank utilizes interest-rate swaps as part of its asset/liability management strategy to help manage its interest rate risk position, and does not use derivatives for trading purposes. CFBank enters into interest rate swaps with certain qualifying commercial loan customers to meet their interest rate risk management needs. CFBank simultaneously enters into interest rate swaps with dealer counterparties, with identical notional amounts and offsetting terms. The net result of these interest rate swaps is that the customer pays a fixed rate of interest and CFBank receives a floating rate. These back-to-back loan swaps are derivative financial instruments and are reported at fair value in “accrued interest receivable and other assets” and “accrued interest payable and other liabilities” in the Consolidated Balance Sheets. Changes in the fair value of loan swaps are recorded in other noninterest income and net to zero because of the offsetting terms of swaps with borrowers and swaps with dealer counterparties.\n\nThe notional amount of the interest-rate swaps does not represent amounts exchanged by the parties. The amount exchanged is determined by reference to the notional amount and the other terms of the individual interest-rate swap agreements. CFBank was party to interest-rate swaps with a combined notional amount of $107,204 at March 31, 2026 and $102,052 at December 31, 2025.\n\nThe counterparty to CFBank’s interest-rate swaps is exposed to credit risk whenever the interest-rate swaps are in a liability position. At March 31, 2026, CFBank had $2,127 in cash pledged as collateral for these derivatives. Should the liability increase beyond the collateral value, CFBank will be required to pledge additional collateral.\n\n31\n\n[Table of Contents](#toc_page)\n\nCF BANKSHARES INC.\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)\n\n(Dollars in thousands, except per share data)\n\n \n\nAdditionally, CFBank’s interest-rate swap instruments contain provisions that require CFBank to remain well capitalized under regulatory capital standards and to comply with certain other regulatory requirements. The interest-rate swaps may be called by the counterparty if CFBank fails to maintain well-capitalized status under regulatory capital standards or becomes subject to certain adverse regulatory events such as a regulatory cease and desist order. As of March 31, 2026, CFBank was well-capitalized under regulatory capital standards and was not subject to any adverse regulatory events specified in CFBank’s interest-rate swap instruments.\n\nSummary information about the derivative instruments is as follows:\n\n \n\n \n\n \n\nMarch 31, 2026\n\n \n\n \n\nDecember 31, 2025\n\n \n\n \n\n \n\n(unaudited)\n\n \n\n \n\n \n\n \n\n \n\nNotional amount\n\n \n\n$\n\n \n\n107,204\n\n \n\n \n\n$\n\n \n\n102,052\n\n \n\nWeighted average pay rate on interest-rate swaps\n\n \n\n \n\n \n\n5.72\n\n%\n\n \n\n \n\n \n\n5.68\n\n%\n\nWeighted average receive rate on interest-rate swaps\n\n \n\n \n\n \n\n6.04\n\n%\n\n \n\n \n\n \n\n6.24\n\n%\n\nWeighted average maturity (years)\n\n \n\n \n\n \n\n8.6\n\n \n\n \n\n \n\n \n\n9.0\n\n \n\nFair value of derivative asset\n\n \n\n$\n\n \n\n3,231\n\n \n\n \n\n$\n\n \n\n3,578\n\n \n\nFair value of derivative liability\n\n \n\n \n\n \n\n(3,231\n\n)\n\n \n\n \n\n \n\n(3,578\n\n)\n\n \n\nMortgage banking derivatives:\n\nMortgage banking activities include two types of commitments: rate lock commitments and forward loan sales commitments. Rate lock commitments are loans in our pipeline that have an interest rate locked with the customer. The commitments are generally for periods of 30 to 60 days and are at market rates. In order to mitigate the effect of the interest rate risk inherent in providing rate lock commitments, we economically hedge our commitments by entering into a forward loan sales contract under best efforts. Commitments to fund certain mortgage loans (interest rate locks) to be sold into the secondary market are considered derivatives. These mortgage banking derivatives are not designated in hedge relationships. The Company had $4,441 of interest rate lock commitments related to residential mortgage loans at March 31, 2026 and $2,422 of interest rate lock commitments related to residential mortgage loans at December 31, 2025. The fair value of these interest lock commitments was immaterial at March 31, 2026 and December 31, 2025.\n\nThe following table represents the notional amount of loans sold through mortgage banking activities during the three months ended March 31, 2026 and 2025 (unaudited):\n\n \n\n \n\n \n\nThree Months Ended\n\n \n\n \n\n \n\nMarch 31,\n\n \n\n \n\n \n\n2026\n\n \n\n \n\n2025\n\n \n\nNotional amount of loans sold\n\n \n\n$\n\n \n\n13,481\n\n \n\n \n\n$\n\n \n\n9,173\n\n \n\n \n\nThe following table represents the gain (loss) recognized on mortgage activities for the three months ended March 31, 2026 and 2025 (unaudited):\n\n \n\n \n\n \n\nThree Months Ended\n\n \n\n \n\n \n\nMarch 31,\n\n \n\n \n\n \n\n2026\n\n \n\n \n\n2025\n\n \n\nGain on loans sold\n\n \n\n$\n\n145\n\n \n\n \n\n$\n\n114\n\n \n\nGain (loss) from change in fair value of loans held-for-sale\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n—\n\n \n\n \n\n$\n\n145\n\n \n\n \n\n$\n\n114\n\n \n\n \n\n \n\nNOTE 12 – INCOME TAXES\n\nAt March 31, 2026 and December 31, 2025, the Company had a deferred tax asset recorded in the amount of $4,406 and $4,251, respectively. At March 31, 2026 and December 31, 2025, the Company had no unrecognized tax benefits recorded. The Company is subject to U.S. federal income tax and is no longer subject to federal examination for years prior to 2021.\n\n32\n\n[Table of Contents](#toc_page)\n\nCF BANKSHARES INC.\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)\n\n(Dollars in thousands, except per share data)\n\n \n\nOur deferred tax assets are composed of U.S. net operating losses (“NOLs”), and other temporary book to tax differences. When determining the amount of deferred tax assets that are more-likely-than-not to be realized, and therefore recorded as a benefit, the Company conducts a regular assessment of all available information. This information includes, but is not limited to, taxable income in prior periods, projected future income and projected future reversals of deferred tax items. Based on these criteria, the Company determined as of March 31, 2026 that no valuation allowance was required against the net deferred tax asset.\n\nIn 2012, the Company completed a recapitalization program pursuant to which the Holding Company sold $22,500 in common stock, which improved the capital levels of CFBank and provided working capital for the Holding Company. The result of the change in stock ownership associated with the stock offering, however, was that the Company incurred an ownership change within the guidelines of Section 382 of the Internal Revenue Code of 1986. At March 31, 2026, the Company had net operating loss carryforwards of $21,283, which expire at various dates from 2026 to 2032. As a result of the ownership change, the Company's ability to utilize carryforwards that arose before the 2012 stock offering closed is limited to $163 per year. Due to this limitation, management determined it is more likely than not that $20,520 of net operating loss carryforwards will expire unutilized. As required by ASC 740, in August 2012 the Company reduced the carrying value of deferred tax assets, and the corresponding valuation allowance, by the $6,977 tax effect of this lost benefit.\n\nThe Company records income tax expense based on the federal statutory rate adjusted for the effect of low income housing credits, tax exempt interest, bank owned life insurance, dividends on equity securities and other miscellaneous items. The effective tax rate was 14.7% for the three months ended March 31, 2026 and 20.6% for the three months ended March 31, 2025, which management believes were reasonable estimates for the effective tax rates for such periods.\n\nThe following table summarizes the major components creating differences between income taxes at the federal statutory tax rate and the effective tax rate recorded in the Consolidated Statements of Income for the three months ended March 31, 2026 and 2025:\n\n \n\n \n\nFor the three months ended\n\n \n\n \n\n \n\nMarch 31,\n\n \n\n \n\n \n\n2026\n\n \n\n \n\n2025\n\n \n\n \n\n \n\n(unaudited)\n\n \n\nStatutory tax rate\n\n \n\n \n\n21.0\n\n%\n\n \n\n \n\n21.0\n\n%\n\nIncrease (decrease) resulting from:\n\n \n\n \n\n \n\n \n\n \n\n \n\nRestricted stock\n\n \n\n \n\n(1.9\n\n%)\n\n \n\n \n\n(0.7\n\n%)\n\nTax exempt interest\n\n \n\n \n\n(0.5\n\n%)\n\n \n\n \n\n(0.4\n\n%)\n\nTax exempt earnings on bank owned life insurance\n\n \n\n \n\n(0.9\n\n%)\n\n \n\n \n\n(0.8\n\n%)\n\nDividends on equity securities\n\n \n\n \n\n0.0\n\n%\n\n \n\n \n\n(0.2\n\n%)\n\nTax credit investments\n\n \n\n \n\n(3.1\n\n%)\n\n \n\n \n\n1.60\n\n%\n\nState income tax\n\n \n\n \n\n0.0\n\n%\n\n \n\n \n\n0.0\n\n%\n\nOther, net\n\n \n\n \n\n0.1\n\n%\n\n \n\n \n\n0.1\n\n%\n\nEffective tax rate\n\n \n\n \n\n14.7\n\n%\n\n \n\n \n\n20.6\n\n%\n\n \n\n33\n\n[Table of Contents](#toc_page)\n\nCF BANKSHARES INC.\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)\n\n(Dollars in thousands, except per share data)\n\n \n\nNOTE 13- ACCUMULATED OTHER COMPREHENSIVE LOSS\n\nThe following table summarizes the changes within each classification of accumulated other comprehensive loss, net of tax, for the three months ended March 31, 2026 and 2025 and summarizes the significant amounts reclassified out of each component of accumulated other comprehensive loss:\n\nChanges in Accumulated Other Comprehensive Loss by Component (1)\n\n \n\n \n\n \n\nThree months ended\n\n \n\n \n\n \n\nMarch 31,\n\n \n\n \n\n \n\n2026\n\n \n\n \n\n2025\n\n \n\n \n\n \n\n(unaudited)\n\n \n\n \n\n \n\nUnrealized Gains and (Losses)\non Available-for-Sale Securities\n\n \n\nAccumulated other comprehensive loss, beginning of\n   period\n\n \n\n$\n\n \n\n(1,371\n\n)\n\n \n\n$\n\n \n\n(1,803\n\n)\n\nOther comprehensive (loss) gain before reclassifications\n   (2)\n\n \n\n \n\n \n\n(118\n\n)\n\n \n\n \n\n \n\n78\n\n \n\nNet current-period other comprehensive (loss) gain\n\n \n\n \n\n \n\n(118\n\n)\n\n \n\n \n\n \n\n78\n\n \n\nAccumulated other comprehensive loss, end of period\n\n \n\n$\n\n \n\n(1,489\n\n)\n\n \n\n$\n\n \n\n(1,725\n\n)\n\n \n\n(1)\nAll amounts are net of tax. Amounts in parentheses indicate a reduction of other comprehensive income.\n\n(2)\nThere were no amounts reclassified out of accumulated other comprehensive loss for the three months ended March 31, 2026 and 2025.\n\nNOTE 14- PREFERRED STOCK\n\nSeries D Preferred Stock:\n\nOn February 6, 2024, the Company issued 2,000 shares of its newly-designated series of non-voting convertible perpetual preferred stock, series D, par value $0.01 per share (the “Series D Preferred Stock”) to an existing stockholder of the Company in exchange for 200,000 shares of (Voting) Common Stock. On May 29, 2024, the Company issued 160 shares of Series D Preferred Stock to an existing stockholder of the Company in exchange for 16,000 shares of (Voting) Common Stock. On December 5, 2024, these 160 shares of Series D Preferred Stock were exchanged back to 16,000 shares of (Voting) common stock. At March 31, 2026 and December 31, 2025, 2,000 shares of Series D Preferred Stock were outstanding.\n\nEach share of Series D Preferred Stock will be convertible either (i) automatically into 100 shares of the Company’s Non-Voting Common Stock if and when the Company’s shareholders approve an amendment to the Company’s Certificate of Incorporation to increase the number of authorized shares of Non-Voting Common Stock to permit the conversion of all outstanding shares of Series D Preferred Stock into shares of Non-Voting Common Stock (which shareholder approval and amendment the Company may, but is not obligated, to seek); (ii) unless previously converted into shares of Non-Voting Common Stock, into 100 shares of (Voting) Common Stock at the request of the holder, provided that upon such conversion the holder, together with all affiliates of the holder, will not own or control in aggregate more than 9.9% of the outstanding (Voting) Common Stock (or of any class of voting securities issued by the Company); or (iii) unless previously converted into shares of Non-Voting Common Stock, into 100 shares of (Voting) Common Stock upon transfer of such shares of Series D Preferred Stock to a non-affiliate of the holder in specified permitted transactions. The holders of Series D Preferred Stock are not entitled to any liquidation preferences. The holders of Series D Preferred Stock participate with common shareholders pro rata in dividends on an as-converted basis.\n\n \n\n34\n\n[Table of Contents](#toc_page)\n\nCF BANKSHARES INC.\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)\n\n(Dollars in thousands, except per share data)\n\n \n\n \n\nNOTE 15- TAX CREDIT INVESTMENTS\n\nThe Company has investments in various limited partnerships that sponsor affordable housing projects and federal historic projects. The purpose of the investments is to earn an adequate return of capital through the receipt of tax credits and to assist the Company in achieving goals associated with the Community Reinvestment Act. These investments are included in other assets on the Consolidated Balance Sheet, with any unfunded commitments included in other liabilities. The investments are amortized as a component of income tax expense.\n\nThe following table summarizes the Company’s tax credit investments as of March 31, 2026 and December 31, 2025.\n\n \n\n \n\n \n\nMarch 31, 2026\n\n \n\n \n\nDecember 31, 2025\n\n \n\nInvestment Type\n\n \n\nInvestment\n\n \n\n \n\nUnfunded\nCommitment\n\n \n\n \n\nInvestment\n\n \n\n \n\nUnfunded\nCommitment\n\n \n\nLow Income Housing Tax Credit (LIHTC)\n\n \n\n$\n\n \n\n23,964\n\n \n\n \n\n$\n\n \n\n11,608\n\n \n\n \n\n$\n\n \n\n24,570\n\n \n\n \n\n$\n\n \n\n12,540\n\n \n\nHistoric Tax Credit (HTC)\n\n \n\n \n\n \n\n1,730\n\n \n\n \n\n \n\n \n\n996\n\n \n\n \n\n \n\n \n\n1,835\n\n \n\n \n\n \n\n \n\n1,943\n\n \n\nTotal\n\n \n\n$\n\n \n\n25,694\n\n \n\n \n\n$\n\n \n\n12,604\n\n \n\n \n\n$\n\n \n\n26,405\n\n \n\n \n\n$\n\n \n\n14,483\n\n \n\n \n\nThe following table summarizes the amortization expense and tax credits recognized for the Company’s tax credit investments for the three months ended March 31, 2026 and 2025, respectively:\n\n \n\n \n\n \n\nThree months ended March 31,\n\n \n\n \n\n \n\n2026\n\n \n\n \n\n2025\n\n \n\nAmortization expense:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nLIHTC\n\n \n\n$\n\n \n\n606\n\n \n\n \n\n$\n\n \n\n442\n\n \n\nHTC\n\n \n\n \n\n \n\n105\n\n \n\n \n\n \n\n \n\n240\n\n \n\nTotal\n\n \n\n$\n\n \n\n711\n\n \n\n \n\n$\n\n \n\n682\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nTax credits recognized:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nLIHTC\n\n \n\n$\n\n \n\n616\n\n \n\n \n\n$\n\n \n\n448\n\n \n\nHTC\n\n \n\n \n\n \n\n128\n\n \n\n \n\n \n\n \n\n—\n\n \n\nTotal\n\n \n\n$\n\n \n\n744\n\n \n\n \n\n$\n\n \n\n448\n\n \n\n \n\nNOTE 16- SUBSEQUENT EVENT\n\nOn April 1, 2026, the Company’s Board of Directors declared a cash dividend of $0.09 per share on its common stock and a corresponding cash dividend of $9.00 per share on its Series D Preferred Stock. The dividend was paid on April 21, 2026 to shareholders of record as of the close of business on April 13, 2026.\n\n35\n\n[Table of Contents](#toc_page)\n\n \n\nCF BANKSHARES INC.\n\nPART 1. Item 2\n\nMANAGEMENT DISCUSSION AND ANALYSIS\n\nFORWARD LOOKING STATEMENTS\n\nThis Quarterly Report on Form 10-Q and other reports and materials we have filed or may file with the Securities and Exchange Commission (“SEC”) contain or may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the safe harbor provisions of the U.S. Private Securities Reform Act of 1995, which are made in good faith by us. Forward-looking statements include, but are not limited to: (1) projections of revenues, income or loss, earnings or loss per common share, capital structure and other financial items; (2) plans and objectives of the management or Boards of Directors of CF Bankshares Inc. (the “Holding Company”) or CFBank, National Association (“CFBank” and, together with the Holding Company, the “Company”); (3) statements regarding future events, actions or economic performance; and (4) statements of assumptions underlying such statements. Words such as \"estimate,\" \"strategy,\" \"may,\" \"believe,\" \"anticipate,\" \"expect,\" \"predict,\" \"will,\" \"intend,\" \"plan,\" \"targeted,\" and the negative of these terms, or similar expressions, are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. Various risks and uncertainties may cause actual results to differ materially from those indicated by our forward-looking statements, including, without limitation, those risks detailed from time to time in our reports filed with the SEC, including those identified in “Item 1A. Risk Factors” of Part I of our Annual Report on Form 10-K filed with SEC for the year ended December 31, 2025.\n\nForward-looking statements are not guarantees of performance or results. A forward-looking statement may include a statement of the assumptions or bases underlying the forward-looking statement. We believe that we have chosen these assumptions or bases in good faith and that they are reasonable. We caution you, however, that assumptions or bases almost always vary from actual results, and the differences between assumptions or bases and actual results can be material. The forward-looking statements included in this quarterly report speak only as of the date of the report. We undertake no obligation to publicly release revisions to any forward-looking statements to reflect events or circumstances after the date of such statements, except to the extent required by law.\n\nBusiness Overview\n\nThe Holding Company is a bank holding company that owns 100% of the stock of CFBank, which was formed in Ohio in 1892 and converted from a federal savings association to a national bank on December 1, 2016. Prior to December 1, 2016, the Holding Company was a registered savings and loan holding company. Effective as of December 1, 2016 and in conjunction with the conversion of CFBank to a national bank, the Holding Company became a registered bank holding company subject to supervision and regulation by the Federal Reserve Board (the “Federal Reserve”). Effective as of July 27, 2020, the Holding Company changed its name from Central Federal Corporation to CF Bankshares Inc.\n\nCFBank focuses on serving the financial needs of closely held businesses and entrepreneurs, by providing comprehensive Commercial, Retail, and Mortgage Lending services presence. In all regional markets, CFBank provides commercial loans and equipment leases, commercial and residential real estate loans and treasury management depository services, and full-service commercial and retail banking services and products. CFBank seeks to differentiate itself from its competitors by providing individualized service coupled with direct customer access to decision-makers, and ease of doing business. We believe that CFBank matches the sophistication of much larger banks, without the bureaucracy. CFBank also offers its clients the convenience of online banking, mobile banking and remote deposit capabilities.\n\nMost of our deposits and loans come from our market area. Our principal market area for deposits and loans includes the following counties in Ohio and Indiana: Franklin County, Ohio through our offices in Columbus, Ohio; Delaware County, Ohio through our Polaris office in Columbus, Ohio; Cuyahoga County, Ohio through our office in Orange Village, Ohio and our Ohio City office in Cleveland, Ohio; Summit County, Ohio through our office in Fairlawn, Ohio; Hamilton County, Ohio through our offices in Blue Ash, Ohio and our Red Bank office in Cincinnati, Ohio; and Marion County, Indiana through our office in Indianapolis, Indiana. Because of CFBank’s concentration of business activities in Ohio, the Company’s financial condition and results of operations depend in large part upon economic conditions in Ohio.\n\n36\n\n[Table of Contents](#toc_page)\n\nCF BANKSHARES INC.\n\nPART 1. Item 2\n\nMANAGEMENT DISCUSSION AND ANALYSIS\n\n \n\nGeneral\n\nOur net income is dependent primarily on net interest income, which is the difference between the interest income earned on loans and securities and our cost of funds, consisting of interest paid on deposits and borrowed funds. Net interest income is affected by regulatory, economic and competitive factors that influence interest rates, loan demand, the level of nonperforming assets and deposit flows.\n\nNet income is also affected by, among other things, provisions for credit losses, loan fee income, service charges, gains on loan sales, operating expenses, and taxes. Operating expenses principally consist of employee compensation and benefits, occupancy, advertising and marketing, data processing, professional fees, FDIC insurance premiums and other general and administrative expenses. Our results of operations are significantly affected by general economic and competitive conditions, changes in market interest rates and real estate values, government policies and actions of regulatory authorities. Our regulators have extensive discretion in their supervisory and enforcement activities, including the authority to impose restrictions on our operations, to classify our assets and to require us to increase the level of our allowance for credit losses on loans and leases. Any change in such regulation and oversight, whether in the form of regulatory policy, regulations, legislation or supervisory action, may have a material impact on our business, financial condition, results of operations and/or cash flows.\n\nManagement’s discussion and analysis represents a review of our unaudited consolidated financial condition and results of operations for the periods presented. This review should be read in conjunction with our Consolidated Financial Statements and related Notes included in this Quarterly Report on Form 10-Q.\n\nFinancial Condition\n\nGeneral. Assets totaled $2.1 billion at March 31, 2026 and increased $28.5 million, or 1.3%, from $2.1 billion at December 31, 2025. The increase was primarily due to a $22.4 million increase in net loans and leases and an $8.8 million increase in cash and cash equivalents.\n\nCash and cash equivalents. Cash and cash equivalents totaled $267.8 million at March 31, 2026, and increased $8.8 million, or 3.4%, from $259.0 million at December 31, 2025. The increase in cash and cash equivalents was primarily attributed to a $28.8 million increase in deposits, partially offset by a $22.4 million increase in net loans and leases.\n\nSecurities. Securities available for sale totaled $17.4 million at March 31, 2026, and decreased $101,000, or 0.6%, compared to $17.5 million at December 31, 2025.\n\nLoans held for sale. Loans held for sale totaled $3.6 million at March 31, 2026, and decreased $2.0 million, or 35.2%, from $5.6 million at December 31, 2025.\n\nLoans and Leases. Net loans and leases totaled $1.76 billion at March 31, 2026, and increased $22.4 million, or 1.3%, from $1.74 billion at December 31, 2025. The increase in loans and leases balances was primarily due to a $17.1 million increase in commercial real estate loan balances, an $8.7 million increase in commercial and industrial (C&I) loan balances, and an $8.3 million increase in construction loan balances, partially offset by a $10.5 million decrease in single-family residential loan balances.\n\nAllowance for Credit Losses on Loans. The allowance for credit losses on loans (“ACL – Loans”) totaled $18.6 million at March 31, 2026, and increased $963,000, or 5.5%, from $17.7 million at December 31, 2025. The ratio of the ACL - Loans to total loans was 1.05% at March 31, 2026, compared to 1.01% at December 31, 2025.\n\nThe ACL - Loans is a valuation account that is deducted from the loans' amortized cost basis to present the net amount expected to be collected on loans over the contractual term. Loans are charged off against the allowance when the uncollectibility of the loan is confirmed. Expected recoveries do not exceed the aggregate of amounts previously charged off and expected to be charged off. Adjustments to the ACL - Loans are reported in the income statement as a component of provision for credit loss. The Company has made the accounting policy election to exclude accrued interest receivable on loans from the estimate of credit losses. Further information regarding the policies and methodology used to estimate the ACL - Loans is detailed in Note 1 – Summary of Significant Accounting Policies and Note 4 - Loans and Leases to the Consolidated Financial Statements included in this Quarterly Report on Form 10-Q.\n\nIndividually evaluated loans totaled $17.2 million at March 31, 2026, and increased $4.8 million, or 39.0%, from $12.4 million at December 31, 2025. The amount of the ACL - Loans specifically calculated for individually evaluated loans totaled $3.0 million at March 31, 2026 and $2.8 million at December 31, 2025.\n\n37\n\n[Table of Contents](#toc_page)\n\nCF BANKSHARES INC.\n\nPART 1. Item 2\n\nMANAGEMENT DISCUSSION AND ANALYSIS\n\n \n\nThe reserve on individually evaluated loans is based on management’s estimate of the present value of estimated future cash flows using the loan’s effective rate or the fair value of collateral, if repayment is expected solely from the collateral. On at least a quarterly basis, management reviews each individually evaluated loan to determine whether it should have a reserve or partial charge-off. Management relies on appraisals or internal evaluations to help make this determination. Determination of whether to use an updated appraisal or internal evaluation is based on factors including, but not limited to, the age of the loan and the most recent appraisal, condition of the property and whether we expect the collateral to go through the foreclosure or liquidation process. Management considers the need for a downward adjustment to the valuation based on current market conditions and on management’s analysis, judgment and experience. The amount ultimately charged-off for these loans may be different from the reserve, as the ultimate liquidation of the collateral and/or projected cash flows may be different from management’s estimates.\n\nNonperforming loans, which include nonaccrual loans and loans at least 90 days past due but still accruing interest, totaled $20.3 million at March 31, 2026, and increased $5.0 million from $15.3 million at December 31, 2025. The increase in nonaccrual loans included the addition of one non-core (syndicated) commercial and industrial (C&I) loan for $5.0 million. The ratio of nonperforming loans to total loans was 1.14% at March 31, 2026 compared to 0.87% at December 31, 2025.\n\nDuring the three months ended March 31, 2026 and 2025, the Company did not modify any loans where the borrower was experiencing financial difficulty.\n\nWe have incorporated the regulatory asset classifications as a part of our credit monitoring and internal loan risk rating system. In accordance with regulations, problem loans are classified as special mention, substandard, doubtful or loss, and the classifications are subject to review by the regulators. Assets designated as special mention are considered criticized assets. Assets designated as substandard, doubtful or loss are considered classified assets. See Note 4- Loans and Leases to our Consolidated Financial Statements included in this Quarterly Report on Form 10-Q for additional information regarding the regulatory asset classifications.\n\nThe level of total criticized and classified loans increased by $28.0 million, or 97.2%, during the three months ended March 31, 2026. The increase in criticized and classified loans was primarily the result of two relationships that were downgraded during the quarter ended March 31, 2026. Loans designated as special mention increased $23.0 million, or 123.9%, and totaled $41.5 million at March 31, 2026, compared to $18.5 million at December 31, 2025. Loans classified as substandard increased $5.0 million, or 50.9%, and totaled $14.9 million at March 31, 2026, compared to $9.9 million at December 31, 2025. Loans designated as doubtful totaled $385,000 at both March 31, 2026 and December 31, 2025. See Note 4- Loans and Leases to our Consolidated Financial Statements included in this Quarterly Report on Form 10-Q for additional information regarding risk classification of loans.\n\nIn addition to credit monitoring through our internal loan risk rating system, we also monitor past due information for all loan segments. Loans that are not rated under our internal credit rating system include groups of homogenous loans, such as single-family residential real estate loans and consumer loans. The primary credit indicator for these groups of homogenous loans is past due information.\n\nTotal past due loans increased $4.6 million and totaled $17.5 million at March 31, 2026, compared to $12.9 million at December 31, 2025. Past due loans totaled 1.0% of the loan portfolio at March 31, 2026, compared to 0.7% at December 31, 2025. See Note 4-Loans and Leases to our Consolidated Financial Statements included in this Quarterly Report on Form 10-Q for additional information regarding loan delinquencies.\n\nAll lending activity involves risk of loss. Certain types of loans, such as option adjustable-rate mortgage (ARM) products, junior lien mortgages, high loan-to-value ratio mortgages, interest only loans, subprime loans and loans with initial teaser rates, can have a greater risk of non-collection than other loans. CFBank has not engaged in subprime lending or used option ARM products.\n\nLoans that contain interest only payments may present a higher risk than those loans with an amortizing payment that includes periodic principal reductions. Interest only loans are primarily commercial lines of credit secured by business assets and inventory, and consumer home equity lines of credit secured by the borrower’s primary residence. Due to the fluctuations in business assets and inventory of our commercial borrowers, CFBank has increased risk due to a potential decline in collateral values without a corresponding decrease in the outstanding principal. Interest only commercial lines of credit totaled $122.6 million, or 32.4%, of CFBank’s commercial portfolio, at March 31, 2026, compared to $111.2 million, or 30.1%, at December 31, 2025. Interest only home equity lines of credit totaled $40.9 million, or 98.7%, of the total home equity lines of credit at March 31, 2026, compared to $41.1 million, or 98.5%, at December 31, 2025.\n\n38\n\n[Table of Contents](#toc_page)\n\nCF BANKSHARES INC.\n\nPART 1. Item 2\n\nMANAGEMENT DISCUSSION AND ANALYSIS\n\n \n\nWe believe the ACL - Loans is adequate to absorb current expected credit losses in the loan portfolio as of March 31, 2026; however, future additions to the allowance may be necessary based on factors including, but not limited to, deterioration in client business performance, recessionary economic conditions, declines in borrowers’ cash flows and market conditions which result in lower real estate values. Additionally, various regulatory agencies, as an integral part of their examination process, periodically review the ACL - Loans. Such agencies may require additional provisions for loan losses based on judgments and estimates that differ from those used by management, or on information available at the time of their review. Management continues to diligently monitor credit quality in the existing portfolio and analyze potential loan opportunities carefully in order to manage credit risk. An increase in loan losses could occur if economic conditions and factors which affect credit quality, real estate values and general business conditions worsen or do not improve.\n\nForeclosed assets. The Company held no foreclosed assets at March 31, 2026 or December 31, 2025. The level of foreclosed assets and charges to foreclosed assets expense may change in the future in connection with workout efforts related to foreclosed assets, nonperforming loans and other loans with credit issues.\n\nDeposits. Deposits totaled $1.81 billion at March 31, 2026, an increase of $28.8 million, or 1.6%, when compared to $1.78 billion at December 31, 2025. The increase when compared to December 31, 2025 was primarily due to a $73.7 million increase in interest-bearing account balances, partially offset by a $44.9 million decrease in noninterest-bearing account balances. The increase in interest-bearing account balances and the decrease in noninterest-bearing balances were primarily driven by customer movement between account types.\n\nAt March 31, 2026, approximately 29.8% of our deposit balances exceeded the FDIC insurance limit of $250,000, as compared to approximately 29.5% at December 31, 2025.\n\nCFBank is a participant in the Certificate of Deposit Account Registry Service® (CDARS) and Insured Cash Sweep (ICS) programs offered through IntraFi. IntraFi works with a network of banks to offer products that can provide FDIC insurance coverage in excess of $250,000 through these innovative products. Brokered deposits, including CDARS and ICS deposits that qualify as brokered, totaled $405.3 million at March 31, 2026, and increased $4.9 million, or 1.2%, from $400.4 million at December 31, 2025. Customer balances in the CDARS reciprocal and ICS reciprocal programs, which do not qualify as brokered, totaled $278.0 million at March 31, 2026, and decreased $750,000, or 0.3%, from $278.7 million at December 31, 2025.\n\nFHLB advances and other debt. FHLB advances and other debt totaled $101.0 million at March 31, 2026 and December 31, 2025.\n\nThe Holding Company has a credit facility with a third-party bank. Prior to April 30, 2025, the credit facility had a borrowing limit of $35 million with a revolving feature until May 21, 2024, at which time the outstanding balance was converted to a 10-year term note on a graduated 10-year amortization. Borrowings on the credit facility bore interest at a fixed rate of 3.85% until May 21, 2026, at which time the interest rate then would convert to a floating rate equal to PRIME with a floor of 3.25%. Effective April 30, 2025, an additional $10 million revolving line of credit was added to the credit facility and the interest rate was amended to reset the fixed rate to 6.00% until May 21, 2026, at which time the rate will convert to a floating rate equal to PRIME. The $10 million revolving line of credit matures on April 30, 2027. The revolving line of credit provided an additional $10 million that was injected as additional Tier 1 capital into CFBank during the second quarter of 2025. At March 31, 2026, the Company had an outstanding balance, net of unamortized debt issuance costs, of $43.0 million on the credit facility.\n\nAt March 31, 2026, CFBank had availability in unused lines of credit at two commercial banks in the amounts of $50.0 million and $15.0 million. There were no outstanding borrowings on either line at March 31, 2026 or December 31, 2025.\n\nSubordinated debentures. Subordinated debentures totaled $15.0 million at March 31, 2026 and December 31, 2025. In December 2018, the Holding Company entered into subordinated note purchase agreements with certain qualified institutional buyers and completed a private placement of $10.0 million of fixed-to-floating rate subordinated notes, resulting in net proceeds of $9.6 million after deducting unamortized debt issuance costs of approximately $388,000. In 2003, the Holding Company issued subordinated debentures in exchange for the proceeds of a $5.0 million trust preferred securities offering issued by a trust formed by the Holding Company. The terms of the subordinated debentures allow for the Holding Company to defer interest payments for a period not to exceed five years. Interest payments on the subordinated debentures were current at March 31, 2026 and December 31, 2025.\n\nStockholders’ equity. Stockholders’ equity totaled $189.0 million at March 31, 2026, an increase of $4.6 million, or 2.5%, from $184.4 million at December 31, 2025. The increase in stockholders’ equity during the three months ended March 31, 2026 was primarily attributed to net income, partially offset by $583,000 in dividend payments.\n\n39\n\n[Table of Contents](#toc_page)\n\nCF BANKSHARES INC.\n\nPART 1. Item 2\n\nMANAGEMENT DISCUSSION AND ANALYSIS\n\n \n\nManagement continues to proactively monitor capital levels and ratios in its on-going capital planning process. CFBank has leveraged its capital to support balance sheet growth and drive increased net interest income. Management remains focused on growing capital through earnings; however, should the need arise, CFBank has additional sources of capital and alternatives it could utilize as further discussed in the “Liquidity and Capital Resources” section in this Quarterly Report on Form 10-Q.\n\nCurrently, the Holding Company has excess cash or sources of liquidity to cover its expenses for the foreseeable future, and could inject capital into CFBank if necessary. Also, CFBank has the flexibility to manage its balance sheet size as a result of the short duration of the loans held for sale, as well as to deploy those assets into higher earning assets to improve net interest income as the opportunity presents itself.\n\nComparison of the Results of Operations for the Three Months Ended March 31, 2026 and 2025.\n\nGeneral. Net income for the three months ended March 31, 2026 totaled $5.0 million (or $0.77 per diluted common share) compared to net income of $4.4 million (or $0.68 per diluted common share) for the three months ended March 31, 2025. The increase in net income was primarily the result of an increase in net interest income and noninterest income, partially offset by an increase in noninterest expense.\n\nNet interest income. Net interest income is a significant component of net income, and consists of the difference between interest income generated on interest-earning assets and interest expense incurred on interest-bearing liabilities. Net interest income is primarily affected by the volumes, interest rates and composition of interest-earning assets and interest-bearing liabilities. The tables in the sections below titled “Average Balances, Interest Rates and Yields” and “Rate/Volume Analysis of Net Interest Income” provide important information on factors impacting net interest income and should be read in conjunction with this discussion of net interest income.\n\nNet interest income totaled $13.3 million for the quarter ended March 31, 2026 and increased $411,000, or 3.2%, compared to net interest income of $12.9 million for the quarter ended March 31, 2025. The increase was primarily due to a $1.5 million, or 9.1%, decrease in interest expense, partially offset by a $1.1 million, or 3.7%, decrease in interest income. The decrease in interest expense was primarily attributed to a 50bps decrease in the average rate on interest-bearing liabilities, partially offset by a $56.6 million, or 3.6%, increase in average interest-bearing liabilities. The decrease in interest income was primarily attributed to a 30bps decrease in the average yield on interest-earning assets, partially offset by a $28.3 million, or 1.5%, increase in average interest-earning assets outstanding. During the quarter ended March 31, 2026, we placed a $5.0 million loan on nonaccrual status, which resulted in a $528,000 decline in interest income during the quarter and a corresponding 11bps decline in net interest margin and the average yield on loans. The net interest margin of 2.69% for the quarter ended March 31, 2026 increased 5bps compared to the net interest margin of 2.64% for the first quarter of 2025.\n\nInterest income totaled $28.1 million for the quarter ended March 31, 2026, and decreased $1.1 million, or 3.7%, compared to $29.2 million for the quarter ended March 31, 2025. The decrease in interest income was primarily attributed to a 20bps decrease in the average yield on loans and leases, coupled with a $9.9 million, or 0.6% decrease in average loans and leases. As previously stated, during the quarter ended March 31, 2026, we placed a $5.0 million loan on nonaccrual status, which resulted in a $528,000 decline in interest income during the quarter and a corresponding 11bps decline in net interest margin and the average yield on loans.\n\nInterest expense totaled $14.8 million for the quarter ended March 31, 2026, and decreased $1.5 million, or 9.1%, compared to $16.3 million for the quarter ended March 31, 2025. The decrease in interest expense was primarily attributed to a 60bps decrease in the average rate of interest-bearing deposits, partially offset by a $48.3 million, or 3.3%, increase in average interest-bearing deposits.\n\nProvision for credit losses. There was $604,000 in provision for credit losses expense for the quarter ended March 31, 2026, which reflected an increase of $22,000, compared to a $582,000 provision for the quarter ended March 31, 2025. Net charge-offs for the quarter ended March 31, 2026 totaled $16,000 compared to net charge-offs of $23,000 for the quarter ended March 31, 2025.\n\nThe following table presents information regarding net charge-offs (recoveries) for the three months ended March 31, 2026 and 2025.\n\n \n\n \n\n \n\nFor the three months ended March 31,\n\n \n\n \n\n \n\n2026\n\n \n\n \n\n2025\n\n \n\n(unaudited)\n\n \n\n \n\n(Dollars in thousands)\n\n \n\nCommercial\n\n \n\n$\n\n \n\n26\n\n \n\n \n\n$\n\n \n\n6\n\n \n\nSingle-family residential real estate\n\n \n\n \n\n \n\n(10\n\n)\n\n \n\n \n\n \n\n18\n\n \n\nHome equity lines of credit\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n \n\n(1\n\n)\n\nTotal\n\n \n\n$\n\n \n\n16\n\n \n\n \n\n$\n\n \n\n23\n\n \n\n \n\n40\n\n[Table of Contents](#toc_page)\n\nCF BANKSHARES INC.\n\nPART 1. Item 2\n\nMANAGEMENT DISCUSSION AND ANALYSIS\n\n \n\nNoninterest income. Noninterest income for the quarter ended March 31, 2026 totaled $1.5 million and increased $281,000, or 23.3%, compared to $1.2 million for the quarter ended March 31, 2025. The increase was primarily related to a $172,000 increase in service charges on deposit accounts.\n\nNoninterest expense. Noninterest expense for the quarter ended March 31, 2026 totaled $8.3 million and increased $357,000, or 4.5%, compared to $8.0 million for the quarter ended March 31, 2025. The increase in noninterest expense was primarily due to a $292,000 increase in advertising and marketing expense.\n\nIncome tax expense. Income tax expense was $868,000 for the quarter ended March 31, 2026, a decrease of $281,000, or 24.5%, compared to $1.1 million for the quarter ended March 31, 2025. The effective tax rate for the quarter ended March 31, 2026 was approximately 14.7%, as compared to approximately 20.6% for the quarter ended March 31, 2025. The decline in the effective tax rate for the quarter ended March 31, 2026 was driven by the impact of low-income housing and historic tax credit investments.\n\nOur deferred tax assets are composed of U.S. net operating losses (“NOLs”), and other temporary book to tax differences. When determining the amount of deferred tax assets that are more-likely-than-not to be realized, and therefore recorded as a benefit, the Company conducts a regular assessment of all available information. This information includes, but is not limited to, taxable income in prior periods, projected future income and projected future reversals of deferred tax items. Based on these criteria, the Company determined as of March 31, 2026 that no valuation allowance was required against the net deferred tax asset.\n\nThe Company records income tax expense based on the federal statutory rate adjusted for the effect of other items such as low income housing tax credits, bank owned life insurance and other miscellaneous items.\n\n \n\n \n\n \n\n41\n\n[Table of Contents](#toc_page)\n\nCF BANKSHARES INC.\n\nPART 1. Item 2\n\nMANAGEMENT DISCUSSION AND ANALYSIS\n\n \n\nAverage Balances, Interest Rates and Yields. The following tables present, for the periods indicated, the total dollar amount of fully taxable equivalent interest income from average interest-earning assets and the resultant yields, as well as the interest expense on average interest-bearing liabilities, expressed in both dollars and rates. Average balances are computed using month-end balances.\n\n \n\n \n\nThree months ended March 31,\n\n \n\n \n\n2026\n\n \n\n \n\n2025\n\n \n\n \n\nAverage\n\n \n\n \n\nInterest\n\n \n\n \n\nAverage\n\n \n\n \n\nAverage\n\n \n\n \n\nInterest\n\n \n\n \n\nAverage\n\n \n\n \n\nOutstanding\n\n \n\n \n\nEarned/\n\n \n\n \n\nYield/\n\n \n\n \n\nOutstanding\n\n \n\n \n\nEarned/\n\n \n\n \n\nYield/\n\n \n\n \n\nBalance\n\n \n\n \n\nPaid\n\n \n\n \n\nRate\n\n \n\n \n\nBalance\n\n \n\n \n\nPaid\n\n \n\n \n\nRate\n\n \n\n \n\n(Dollars in thousands)\n\n \n\nInterest-earning assets:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nSecurities (1) (2)\n\n$\n\n \n\n17,523\n\n \n\n \n\n$\n\n \n\n187\n\n \n\n \n\n \n\n \n\n3.89\n\n%\n\n \n\n$\n\n \n\n13,632\n\n \n\n \n\n$\n\n \n\n139\n\n \n\n \n\n \n\n \n\n3.49\n\n%\n\nLoans and leases and loans held\n   for sale (3)\n\n \n\n \n\n1,738,056\n\n \n\n \n\n \n\n \n\n25,809\n\n \n\n \n\n \n\n \n\n5.94\n\n%\n\n \n\n \n\n \n\n1,747,968\n\n \n\n \n\n \n\n \n\n26,815\n\n \n\n \n\n \n\n \n\n6.14\n\n%\n\nOther earning assets\n\n \n\n \n\n217,500\n\n \n\n \n\n \n\n \n\n1,992\n\n \n\n \n\n \n\n \n\n3.66\n\n%\n\n \n\n \n\n \n\n183,421\n\n \n\n \n\n \n\n \n\n2,072\n\n \n\n \n\n \n\n \n\n4.52\n\n%\n\nFHLB and FRB stock\n\n \n\n \n\n8,358\n\n \n\n \n\n \n\n \n\n142\n\n \n\n \n\n \n\n \n\n6.80\n\n%\n\n \n\n \n\n \n\n8,151\n\n \n\n \n\n \n\n \n\n174\n\n \n\n \n\n \n\n \n\n8.54\n\n%\n\nTotal interest-earning assets\n\n \n\n \n\n1,981,437\n\n \n\n \n\n \n\n \n\n28,130\n\n \n\n \n\n \n\n \n\n5.67\n\n%\n\n \n\n \n\n \n\n1,953,172\n\n \n\n \n\n \n\n \n\n29,200\n\n \n\n \n\n \n\n \n\n5.97\n\n%\n\nNoninterest-earning assets\n\n \n\n \n\n100,204\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n99,873\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nTotal assets\n\n$\n\n \n\n2,081,641\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n$\n\n \n\n2,053,045\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nInterest-bearing liabilities:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nDeposits\n\n$\n\n \n\n1,513,330\n\n \n\n \n\n \n\n \n\n13,484\n\n \n\n \n\n \n\n \n\n3.56\n\n%\n\n \n\n$\n\n \n\n1,465,045\n\n \n\n \n\n \n\n \n\n15,253\n\n \n\n \n\n \n\n \n\n4.16\n\n%\n\nFHLB advances and other borrowings\n\n \n\n \n\n116,014\n\n \n\n \n\n \n\n \n\n1,326\n\n \n\n \n\n \n\n \n\n4.57\n\n%\n\n \n\n \n\n \n\n107,690\n\n \n\n \n\n \n\n \n\n1,038\n\n \n\n \n\n \n\n \n\n3.86\n\n%\n\nTotal interest-bearing liabilities\n\n \n\n \n\n1,629,344\n\n \n\n \n\n \n\n \n\n14,810\n\n \n\n \n\n \n\n \n\n3.64\n\n%\n\n \n\n \n\n \n\n1,572,735\n\n \n\n \n\n \n\n \n\n16,291\n\n \n\n \n\n \n\n \n\n4.14\n\n%\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nNoninterest-bearing liabilities\n\n \n\n \n\n265,120\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n309,457\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nTotal liabilities\n\n \n\n \n\n1,894,464\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n1,882,192\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nEquity\n\n \n\n \n\n187,177\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n170,853\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nTotal liabilities and equity\n\n$\n\n \n\n2,081,641\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n$\n\n \n\n2,053,045\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nNet interest-earning assets\n\n$\n\n \n\n352,093\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n$\n\n \n\n380,437\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nNet interest income/interest rate spread\n\n \n\n \n\n \n\n \n\n$\n\n \n\n13,320\n\n \n\n \n\n \n\n \n\n2.03\n\n%\n\n \n\n \n\n \n\n \n\n \n\n$\n\n \n\n12,909\n\n \n\n \n\n \n\n \n\n1.83\n\n%\n\nNet interest margin\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n2.69\n\n%\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n2.64\n\n%\n\nAverage interest-earning assets to\n   average interest-bearing liabilities\n\n \n\n \n\n121.61\n\n%\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n124.19\n\n%\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n(1)\nAverage balance is computed using the carrying value of securities. Average yield is computed using the historical amortized cost average balance for available for sale securities.\n\n(2)\nAverage yields and interest earned are stated on a fully taxable equivalent basis.\n\n(3)\nAverage balance is computed using the recorded investment in loans net of the ACL - Loans and includes nonperforming loans.\n\n \n\n \n\n \n\n42\n\n[Table of Contents](#toc_page)\n\nCF BANKSHARES INC.\n\nPART 1. Item 2\n\nMANAGEMENT DISCUSSION AND ANALYSIS\n\n \n\nRate/Volume Analysis of Net Interest Income. The following table presents the dollar amount of changes in interest income and interest expense for major components of interest-earning assets and interest-bearing liabilities. It distinguishes between the increase and decrease related to changes in balances and/or changes in interest rates. For each category of interest-earning assets and interest-bearing liabilities, information is provided on changes attributable to (i) changes in volume (i.e., changes in volume multiplied by the prior rate) and (ii) changes in rate (i.e., changes in rate multiplied by prior volume). For purposes of this table, changes attributable to both rate and volume which cannot be segregated have been allocated proportionately to the change due to volume and the change due to rate.\n\n \n\n \n\nThree Months Ended\n\n \n\n \n\nMarch 31, 2026\n\n \n\n \n\nCompared to Three Months Ended\n\n \n\n \n\nMarch 31, 2025\n\n \n\n \n\nIncrease (decrease)\n\n \n\n \n\n \n\n \n\n \n\ndue to\n\n \n\n \n\n \n\n \n\n \n\nRate\n\n \n\n \n\nVolume\n\n \n\n \n\nNet\n\n \n\n \n\n(Dollars in thousands)\n\n \n\nInterest-earning assets:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nSecurities (1)\n\n$\n\n \n\n14\n\n \n\n \n\n$\n\n \n\n34\n\n \n\n \n\n$\n\n \n\n48\n\n \n\nLoans and leases\n\n \n\n \n\n(857\n\n)\n\n \n\n \n\n \n\n(149\n\n)\n\n \n\n \n\n \n\n(1,006\n\n)\n\nOther earning assets\n\n \n\n \n\n(1,599\n\n)\n\n \n\n \n\n \n\n1,519\n\n \n\n \n\n \n\n \n\n(80\n\n)\n\nFHLB and FRB Stock\n\n \n\n \n\n(60\n\n)\n\n \n\n \n\n \n\n28\n\n \n\n \n\n \n\n \n\n(32\n\n)\n\nTotal interest-earning assets\n\n \n\n \n\n(2,502\n\n)\n\n \n\n \n\n \n\n1,432\n\n \n\n \n\n \n\n \n\n(1,070\n\n)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nInterest-bearing liabilities:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nDeposits\n\n \n\n \n\n(4,710\n\n)\n\n \n\n \n\n \n\n2,941\n\n \n\n \n\n \n\n \n\n(1,769\n\n)\n\nFHLB advances and other borrowings\n\n \n\n \n\n203\n\n \n\n \n\n \n\n \n\n85\n\n \n\n \n\n \n\n \n\n288\n\n \n\nTotal interest-bearing liabilities\n\n \n\n \n\n(4,507\n\n)\n\n \n\n \n\n \n\n3,026\n\n \n\n \n\n \n\n \n\n(1,481\n\n)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nNet change in net interest income\n\n$\n\n \n\n2,005\n\n \n\n \n\n$\n\n \n\n(1,594\n\n)\n\n \n\n$\n\n \n\n411\n\n \n\n \n\n(1)\nSecurities amounts are presented on a fully taxable equivalent basis.\n\nCritical Accounting Policies\n\nWe follow financial accounting and reporting policies that are in accordance with U.S. generally accepted accounting principles and conform to general practices within the banking industry. These policies are presented in Note 1 to our 2025 Audited Financial Statements. Some of these accounting policies are considered to be critical accounting policies, which are those policies that are both most important to the portrayal of the Company’s financial condition and results of operations, and require management’s most difficult, subjective or complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain. Application of assumptions different than those used by management could result in material changes in our financial condition or results of operations. These policies, current assumptions and estimates utilized, and the related disclosure of this process, are determined by management and routinely reviewed with the Audit Committee of the Board of Directors. We believe that the judgments, estimates and assumptions used in the preparation of the Consolidated Financial Statements were appropriate given the factual circumstances at the time.\n\nWe believe there have been no significant changes during the three months ended March 31, 2026 to the items that we disclosed as our critical accounting policies and estimates in Management's Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the year ended December 31, 2025.\n\nLiquidity and Capital Resources\n\nIn general terms, liquidity is a measurement of an enterprise’s ability to meet cash needs. The primary objective in liquidity management is to maintain the ability to meet loan commitments and to repay deposits and other liabilities in accordance with their terms without an adverse impact on current or future earnings. Principal sources of funds are deposits; amortization and prepayments of loans; maturities, sales and principal receipts of securities available for sale; borrowings; and operations. While maturities and scheduled amortization of loans are predictable sources of funds, deposit flows and loan prepayments are greatly influenced by general interest rates, economic conditions and competition.\n\n43\n\n[Table of Contents](#toc_page)\n\nCF BANKSHARES INC.\n\nPART 1. Item 2\n\nMANAGEMENT DISCUSSION AND ANALYSIS\n\n \n\nCFBank is required by regulation to maintain sufficient liquidity to ensure its safe and sound operation. Thus, adequate liquidity may vary depending on CFBank’s overall asset/liability structure, market conditions, the activities of competitors, the requirements of our own deposit and loan customers and regulatory considerations. Management believes that each of the Holding Company’s and CFBank’s current liquidity is sufficient to meet its daily operating needs and fulfill its strategic planning.\n\nLiquidity management is both a daily and long-term responsibility of management. We adjust our investments in liquid assets, primarily cash, short-term investments and other assets that are widely traded in the secondary market, based on our ongoing assessment of expected loan demand, expected deposit flows, yields available on interest-earning deposits and securities and the objective of our asset/liability management program. In addition to liquid assets, we have other sources of liquidity available including, but not limited to, access to advances from the FHLB and borrowings from the FRB and our commercial bank lines of credit.\n\nThe following table summarizes CFBank’s cash available from liquid assets and borrowing capacity at March 31, 2026 and December 31, 2025.\n\n \n\n \n\nMarch 31, 2026\n\n \n\n \n\nDecember 31, 2025\n\n \n\n \n\n(Dollars in thousands)\n\n \n\nCash, unpledged securities and deposits in other\n   financial institutions\n\n$\n\n \n\n282,035\n\n \n\n \n\n$\n\n \n\n273,349\n\n \n\nAdditional borrowing capacity at the FHLB\n\n \n\n \n\n192,533\n\n \n\n \n\n \n\n \n\n184,374\n\n \n\nAdditional borrowing capacity at the FRB\n\n \n\n \n\n137,217\n\n \n\n \n\n \n\n \n\n122,360\n\n \n\nUnused commercial bank lines of credit\n\n \n\n \n\n65,000\n\n \n\n \n\n \n\n \n\n65,000\n\n \n\nTotal\n\n$\n\n \n\n676,785\n\n \n\n \n\n$\n\n \n\n645,083\n\n \n\n \n\nCash, unpledged securities and deposits in other financial institutions increased $8.7 million, or 3.2%, to $282.0 million at March 31, 2026, compared to $273.3 million at December 31, 2025.\n\nCFBank’s additional borrowing capacity with the FHLB increased $8.2 million, or 4.4%, to $192.5 million at March 31, 2026, compared to $184.4 million at December 31, 2025.\n\nCFBank’s additional borrowing capacity at the FRB increased $14.8 million, or 12.1%, to $137.2 million at March 31, 2026 from $122.4 million at December 31, 2025. CFBank is eligible to participate in the FRB’s primary credit program, providing CFBank access to short-term funds at any time, for any reason, based on the collateral pledged.\n\nCFBank’s borrowing capacity with both the FHLB and FRB may be negatively impacted by changes such as, but not limited to, further tightening of credit policies by the FHLB or FRB, deterioration in the credit performance of CFBank’s loan portfolio or CFBank’s financial performance, or a decrease in the balance of pledged collateral.\n\nCFBank had $65.0 million of availability in unused lines of credit with two commercial banks at March 31, 2026 and at December 31, 2025.\n\nDeposits are obtained predominantly from the markets in which CFBank’s offices are located. We rely primarily on a willingness to pay market-competitive interest rates to attract and retain retail deposits. Accordingly, rates offered by competing financial institutions may affect our ability to attract and retain deposits.\n\nCFBank relies on competitive interest rates, customer service, and relationships with customers to retain deposits. The FDIC provides deposit insurance coverage up to $250,000 per depositor.\n\nThe Holding Company has more limited sources of liquidity than CFBank. In general, in addition to its existing liquid assets, sources of liquidity include funds raised in the securities markets through debt or equity offerings, funds borrowed from third party banks or other lenders, dividends received from CFBank or the sale of assets.\n\nManagement believes that the Holding Company had adequate funds and sources of liquidity at March 31, 2026 to meet its current and anticipated operating needs at this time. The Holding Company’s current cash requirements include operating expenses and interest on subordinated debentures and other debt. The Company may also pay dividends on its common and preferred stock if and when declared by the Board of Directors.\n\n44\n\n[Table of Contents](#toc_page)\n\nCF BANKSHARES INC.\n\nPART 1. Item 2\n\nMANAGEMENT DISCUSSION AND ANALYSIS\n\n \n\nCurrently, annual debt service on the subordinated debentures underlying the Company’s trust preferred securities is approximately $350,000. The rate of interest on the subordinated debentures resets quarterly to the three-month Secured Overnight Financing Rate (SOFR) plus 3.112%, which was 6.81% at March 31, 2026.\n\nCurrently, the annual debt service on the Company’s $10 million of fixed-to-floating rate subordinated notes is approximately $810,000. The subordinated notes initially bore a fixed rate of 7.00% until December 2023, and now the interest rate resets quarterly to a rate equal to the current three-month SOFR plus 4.402%, which was 8.10% at March 31, 2026.\n\nThe Holding Company has a credit facility with a third-party bank. Prior to April 30, 2025, the credit facility had a borrowing limit of $35 million with a revolving feature until May 21, 2024, at which time the outstanding balance was converted to a 10-year term note on a graduated 10-year amortization. Borrowings on the credit facility bore interest at a fixed rate of 3.85% until May 21, 2026, at which time the interest rate would convert to a floating rate equal to PRIME with a floor of 3.25%. Effective April 30, 2025, an additional $10 million revolving line of credit was added to the credit facility and the interest rate was amended to reset the fixed rate to 6.00% until May 21, 2026, at which time the rate will convert to a floating rate equal to PRIME. The $10 million revolving line of credit matures on April 30, 2027. The revolving line of credit provided an additional $10 million that was injected as additional Tier 1 capital into CFBank during the second quarter of 2025. At March 31, 2026, the Company had an outstanding balance, net of unamortized debt issuance costs, of $43.0 million on the credit facility.\n\nThe ability of the Holding Company to pay dividends on its common stock is dependent upon the amount of cash and liquidity available at the Holding Company level, as well as the receipt of dividends and other distributions from CFBank to the extent necessary to fund such dividends.\n\nThe Holding Company is a legal entity that is separate and distinct from CFBank, which has no obligation to make any dividends or other funds available for the payment of dividends by the Holding Company. Banking regulations limit the amount of dividends that can be paid to the Holding Company by CFBank without prior regulatory approval. Generally, financial institutions may pay dividends without prior approval as long as the dividend does not exceed the total of the current calendar year-to-date earnings plus any earnings from the previous two years not already paid out in dividends, and as long as the financial institution remains well capitalized after the dividend payment.\n\nThe Holding Company also is subject to various legal and regulatory policies and requirements impacting the Holding Company’s ability to pay dividends on its stock. In addition, the Holding Company’s ability to pay dividends on its stock is conditioned upon the payment, on a current basis, of quarterly interest payments on the subordinated debentures underlying the Company’s trust preferred securities. Finally, under the terms of the Company’s fixed-to-floating rate subordinated debt, the Holding Company’s ability to pay dividends on its stock is conditioned upon the Holding Company continuing to make required principal and interest payments, and not incurring an event of default, with respect to the subordinated debt.\n\nFederal income tax laws provided deductions, totaling $2.3 million, for thrift bad debt reserves established before 1988. Accounting standards do not require a deferred tax liability to be recorded on this amount, which otherwise would have totaled $473,000 at year-end 2025. However, if CFBank were wholly or partially liquidated or otherwise ceases to be a bank, or if tax laws were to change, this amount would have to be recaptured and a tax liability recorded. Additionally, any distributions in excess of CFBank’s current or accumulated earnings and profits would reduce amounts allocated to its bad debt reserve and create a tax liability for CFBank.\n\n45\n\n[Table of Contents](#toc_page)\n\n \n\nCF BANKSHARES INC.\n\nPART 1. Item 3\n\nQUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK\n\nManagement believes that, as of March 31, 2026, there has been no material change in the Company’s market risk from the information contained in the Company’s Annual Report on Form 10-K filed with the SEC for the year ended December 31, 2025.\n\n46\n\n[Table of Contents](#toc_page)\n\n \n\nCF BANKSHARES INC.\n\nPART 1. Item 4\n\nCONTROLS AND PROCEDURES\n\nEvaluation of disclosure controls and procedures. We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our reports under the Securities Exchange Act of 1934, as amended (“Exchange Act”), is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. Management, with the participation of our principal executive officer and principal financial officer, has evaluated the effectiveness of our disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the period covered by this report. Based on such evaluation, our principal executive officer and principal financial officer have concluded that our disclosure controls and procedures were effective as of and for the quarter ended March 31, 2026.\n\nChanges in internal control over financial reporting. We made no changes in our internal controls over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) in the first quarter of 2026 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.\n\n47\n\n[Table of Contents](#toc_page)\n\n \n\nCF BANKSHARES INC.\n\nPART II. Item 1 to 6\n\nOTHER INFORMATION"}