Home Mortgage loan CFBank announces the end of direct consumer mortgages (DTC).

CFBank announces the end of direct consumer mortgages (DTC).


Columbus, Ohio, July 1, 2021 / PRNewswire / – CFBank, the wholly owned banking subsidiary of CF Bankshares Inc. (NASDAQ: CFBK) (the “Company”), today announced its decision to transfer its mortgage lending business by ending its operations direct consumer loan (DTC) mortgages and increasingly focus on its more traditional retail loan origination part of the business. CFBank suspended the issuance of new rate freeze commitments through its DTC mortgage business as of June 30, 2021 and will work on closing its loan portfolio and existing commitments in the coming months.

CFBank’s decision to end its DTC mortgage lending business was driven by changing market conditions in 2021 as the residential mortgage market experienced price volatility, declining refinancing volumes, squeezing margins and increased competition in the market, among other factors, which led to a difficult environment. . Market conditions led to an increase in prepayment charges (EPO) by CFBank in 2021, as the number of borrowers repaying loans in the first six months after origination increased significantly. EPO expenses are expected to exceed $ 2 million from the beginning of the year until June 30th, 2021. In addition, decreases in DTC’s mortgage origination and related income during the quarter ended June 30th, 2021, coupled with the increase in EPO spending, is expected to result in an after-tax loss for DTC’s mortgage lending business of approximately $ 2.5 million for the second quarter of 2021, which will have a negative impact on the Company’s consolidated financial results for the quarter ended June 30th, 2021. The Company expects to publish its earnings release presenting the consolidated financial results of the Company for the second quarter of 2021 on or about August 4, 2021.

Timothy T. O’Dell, President and CEO, commented, “CFBank opportunistically entered the DTC mortgage business in 2018 and we took advantage of this timely business decision. DTC’s mortgage lending business has been a major driver of commission income for CFBank over the past two years, and fee income generated from this business has enabled CFBank to invest in expanding its footprint. and its presence, as well as in the constitution of capital.

The investments we have been able to make over the past few years in staff and cash management capabilities are generating significant growth in non-interest bearing deposits, as well as related commissions generated by management products and services. cash flow, while investments in our lending staff have driven our commercial lending pipelines to unprecedented heights.

Going forward, CFBank will continue to focus on the growth and expansion of our primary commercial and retail bank, as well as retail mortgages. “

About CF Bankshares Inc. and CFBank
CF Bankshares Inc. is a financial holding company which owns 100% of the shares of CFBank, National Association (CFBank). CFBank is a boutique commercial bank headquartered in Columbus, Ohio. CFBank focused on improving the Ohio economy and meeting the financial needs of businesses closed since 1892. More than a century has passed, yet our goal remains the same: to guide Ohio compatriots to financial stability and success with agility, ease and care. CFBank changed from a federal savings association to a national bank in December 2016. As CFBank has grown, we have maintained our penchant for personalized service and direct customer access to decision makers. CFBank is now present in four major metropolitan markets – Columbus, Cleveland, and Cincinnati, Ohio and Indianapolis, Indiana, as well as branches in the Columbiana country (two locations). In each location, CFBank provides commercial loans and leases, commercial and residential real estate loans and deposit management services, corporate cash management, residential loans and retail banking services and products. full. In addition, CFBank also has a national residential lending platform. CFBank is also pleased to offer its customers the convenience of online online banking, mobile banking and remote deposits.

Additional information on the Company and CFBank is available at www.CFBankOnline.com

This press release and other documents that we have filed or may file with the Securities and Exchange Commission (“SEC”) contain or may contain forward-looking statements within the meaning of the safe harbor provisions of the US Private Securities Reform Act. from 1995, which are made in good faith by us. Forward-looking statements include, but are not limited to: (1) projections of income, income or loss, earnings or loss per common share, capital structure and other financial items; (2) the plans and objectives of the management or boards of directors of CF Bankshares Inc. or CFBank; (3) statements regarding future events, actions or economic performance; and (4) statements of the assumptions underlying those statements. Words such as “estimate”, “strategy”, “power”, “believe”, “anticipate”, “expect”, “predict”, “intend”, “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 shown in our forward-looking statements, including, without limitation, the impacts of the ongoing COVID-19 pandemic on local, national and national economic conditions and global organizations and our industry and activities. in particular, including negative impacts on our clients’ operations, financial condition and ability to repay loans, changes in interest rates or disruptions in the mortgage market, and the effects of various government responses to the pandemic , including stimulus plans and programs; uncertainty regarding the impact of changes in the presidential administration and the United States Congress on the regulatory landscape, capital markets and responses to the COVID-19 pandemic; and additional risks detailed from time to time in our reports filed with the SEC, including those identified in Section 1A. Risk Factors in Part I of Our Annual Report on Form 10-K filed with the SEC for the year ended. December 31, 2020.

Forward-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 the assumptions or bases almost always vary from the actual results, and the differences between the assumptions or bases and the actual results can be material. The forward-looking statements included in this earnings release speak only as of the date hereof. We assume no obligation to publish revisions of forward-looking statements to reflect events or circumstances after the date of such statements, except to the extent required by law.


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