CFBank Announces End of Direct Consumer Mortgage Lending (DTC).



COLUMBUS, OH, July 1, 2021 / PRNewswire / – CFBank, a subsidiary of CF Bankshares Inc. (NASDAQ: CFBK) (the “Company”) today announced its decision to move its mortgage business by scaling back its direct consumer lending (DTC) mortgage lending business and is increasingly focusing on its more traditional, retail side of the business. related to the provision of loans. CFBank has suspended new fixed rate commitments through its DTC mortgage business, effective from June 30, 2021 and will work to close the existing portfolio of loans and liabilities in the next few months.

CFBank’s decision to wind down its DTC mortgage business was driven by changing market conditions during 2021 as the home mortgage market experienced price volatility, reduced refinancing volumes, squeezed margins, and increased market competition, among other factors that led to a challenging environment. … Market conditions have caused CFBank to incur increased early repayment commission (EPO) charges in 2021 as the number of borrowers repaying loans in the first six months after disbursement has increased significantly. EPO costs are expected to exceed 2 million dollars from the beginning of the year to 30 June, 2021. In addition, the decline in the volume of DTC mortgage loans and related revenues during the quarter ended 30 June2021, coupled with increased EPO spending, is expected to result in an after-tax loss for DTC mortgages of approximately $ 2.5 million for the second quarter of 2021, which will negatively affect the consolidated financial results of the Company for the quarter ended 30 June, 2021. The company plans to issue a profit and loss statement with the consolidated financial results of the Company for the second quarter of 2021. August 4, 2021

Timothy T. O’Dell, President and CEO, commented, “CFBank unexpectedly entered the DTC mortgage lending business in 2018 and we benefited from this timely business decision. The DTC mortgage business has been a significant source of fee and commission income for CFBank over the past two years. and the fee and commission income generated from this business has allowed CFBank to invest in expanding its presence and presence along with increasing capital.

The investments that we have been able to make over the past few years in staff and cash management capabilities have resulted in a significant increase in interest-free deposits, along with related commission income generated from cash management products and services, while investments in our commercial The lending workforce has driven our commercial loan portfolios to record highs.

Going forward, CFBank will continue to focus on the growth and expansion of our main commercial and retail bank, as well as retail mortgage lending. ”

About CF Bankshares Inc. and CFBank
CF Bankshares Inc. – a financial holding company that owns 100% of the shares of CFBank, the National Association (CFBank). CFBank is a boutique commercial bank headquartered in Columbus, Ohio… CFBank focused on improving Ohio economics and meeting the financial needs of closed enterprises since 1892. More than a century has passed, and yet our goal remains the same: to lead the Ohio comrades to financial stability and success in a flexible, easy and discreet manner. In December 2016, CFBank transformed itself from the Federal Savings Association into a national bank. As CFBank expanded, we have maintained our propensity for personalized service and direct customer access to decision makers. CFBank is now present in four major metro markets – Columbus, Cleveland, as well as Cincinnati ohio as well as Indianapolis, Indianaas well as branches in Colombia (two locations). Anywhere CFBank provides commercial loans and leases, commercial and residential real estate loans as well as custody services for treasury management, corporate treasury management, home lending and a full range of banking services and products for retail clients. In addition, CFBank also has a national home lending platform. CFBank is also pleased to offer its customers the convenience of internet banking, mobile banking and remote deposit.

Additional information about the company and CFBank is available on the website

This press release and other materials that we have filed or may file with the Securities and Exchange Commission (“SEC”) contain or may contain forward-looking statements in accordance with the Safe Harbor provisions of the US Private Securities Reform Act 1995. which is made by us in good faith. Forward-looking statements include, but are not limited to: (1) projections of income, income or loss, income or loss per common share, capital structures and other financial items; (2) plans and objectives of management or the Board of Directors of CF Bankshares Inc. or CFBank; (3) statements regarding future events, actions or economic indicators; and (4) statements of assumptions underlying such statements. Words such as assessment, strategy, may, believe, expect, expect, predict, will, intend, plan, target, and negative. These terms or similar expressions are intended to indicate forward-looking statements, but are not the exclusive means of identifying such statements. Various risks and uncertainties could cause actual results to differ materially from those stated in our forward-looking statements, including but not limited to the impact of the ongoing COVID-19 pandemic on local, national and global economic conditions in general, as well as on our industry and business. in particular, including the negative impact on the operations, financial condition and ability to repay loans to our clients, changes in interest rates or disruptions in the mortgage market, as well as the consequences of various government responses to the pandemic, including stimulus packages and programs; uncertainty about the impact of changes in the US presidential administration and Congress on the regulatory framework, capital markets and responses to the COVID-19 pandemic; and those additional risks that are detailed from time to time in our reports filed with the SEC, including the risks identified in “Clause 1A. Risk Factors ”Part I of our 10-K Annual Report filed with the SEC for the year ended December 31, 2020

Forward-looking statements are not a guarantee of performance or results. Forward-looking statements may include statements of assumptions or reasons underlying the forward-looking statement. We believe that we have chosen these assumptions or grounds in good faith and that they are reasonable. However, we caution you that assumptions or bases are almost always different from actual results, and differences between assumptions or bases and actual results can be material. Forward-looking statements included in this income statement are valid only as of the date of publication. We do not undertake any obligation to publicly release corrections to any forward-looking statements reflecting events or circumstances after the date of such statements, except as required by law.



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