COLUMBUS, Ohio - CF Bankshares Inc. (NASDAQ: CFBK), the holding company of CFBank, NA, has declared a 17% increase in its quarterly cash dividend for common and Series D preferred stock. The new dividend of $0.07 per common share and $7.00 per preferred share is scheduled for payment on October 19, 2024, to shareholders on record by October 11, 2024.
President and CEO Timothy T. O'Dell (NYSE:DELL) expressed the company's intent to enhance total shareholder returns through this increased dividend, acknowledging shareholder confidence and support. CF Bankshares Inc. has seen a compound annual growth rate exceeding 20% since its 2012 recapitalization. The bank operates primarily in four major metropolitan areas in Ohio and Indiana, focusing on serving closely held businesses and entrepreneurs with comprehensive commercial, retail, and mortgage lending services.
CFBank prides itself on individualized service, offering direct customer access to decision-makers and a business model that combines the sophistication of larger banks with less bureaucracy. The bank's efforts were recognized by Piper Sandler, naming CFBank as one of the "Bank & Thrift Sm-All Stars" for 2023, placing it among the top 10% of small-cap banks and thrifts in the United States.
This announcement is based on a press release statement from CF Bankshares Inc.
In other recent news, CF Bankshares Inc. has declared a quarterly cash dividend for its common and preferred stockholders. The dividend of $0.06 per common share and $6.00 per Series D preferred share will be paid to shareholders on record. Each Series D preferred share is convertible into 100 shares of common stock. Additionally, CF Bankshares Inc. has updated the employment agreements for two of its key executives, Timothy T. O’Dell and Bradley Ringwald. The changes focus on the executives' compensation packages, specifically the lump sum payments they would receive in the event of a change in the bank's control followed by their termination. The revised formula for O'Dell calculates the lump sum as twice the sum of his annual base salary and the average of his cash bonuses and equity compensation received over the prior two fiscal years. Ringwald's amendment increases his potential lump sum payment to one and a half times the sum of his annual base salary and average annual bonus over the previous 24-month period. These are the latest developments for the company.
InvestingPro Insights
CF Bankshares Inc.'s recent dividend increase aligns with its track record of shareholder value creation. According to InvestingPro data, the company has raised its dividend for 4 consecutive years, demonstrating a consistent commitment to returning capital to shareholders. This trend supports President and CEO Timothy T. O'Dell's statement about enhancing total shareholder returns.
Despite the positive dividend news, InvestingPro Tips indicate that CF Bankshares suffers from weak gross profit margins and expects a drop in net income this year. These factors may explain why the company is trading at a price-to-book ratio of 0.87, suggesting the stock might be undervalued relative to its assets.
The company's P/E ratio of 10.69 is relatively low, which could be attractive to value investors, especially considering that analysts predict the company will remain profitable this year. This profitability forecast is consistent with CF Bankshares' performance over the last twelve months.
For investors seeking a more comprehensive analysis, InvestingPro offers 5 additional tips for CF Bankshares, providing deeper insights into the company's financial health and market position.
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