CF Bankshares Q3 net income jumps 158% on loan growth

Overview

• U.S. commercial bank's Q3 net income and EPS rose sharply yr/yr

• Net interest income grew 8% yr/yr, net interest margin expanded to 2.96%

• Q3 saw $42 mln net commercial loan growth and higher customer fees

Outlook

• Company expects business generation and team capabilities to continue to grow in coming quarters

• Company expects growth rate to accelerate and earnings growth opportunities to improve

• Company plans to expand mortgage lending through regional team growth

Result Drivers

• LOAN GROWTH - Higher average loans and leases and improved yields drove net interest income

• FEE INCOME - Customer and treasury management fees rose from prior quarter and yr/yr

• EXPANSION COSTS - Recruiting and expansion of commercial banking teams increased noninterest expense

Company press release:

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "buy"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for CF Bankshares Inc is $40.00, about 16.5% above its October 26 closing price of $34.34

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 8 three months ago

Reuters Recommended Reads

• Oct 26 - Lakeland Financial Q3 net income rises on commercial loan growth

• Oct 26 - First Farmers Q3 net income rises on strong loan growth

• Oct 26 - First Resource Bank Q3 profit rises on loan growth

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)