Central Federal Corporation, was organized as a Delaware corporation in September
1998 as the holding company for CFBank in connection with CFBank’s conversion
from a mutual to stock form of organization. As a savings and loan holding company,
we are subject to regulation by the Board of Governors of the Federal Reserve
System (the “FRB”). CFBank is a savings institution which was originally
organized in 1892, and was formerly known as Central Federal Savings and Loan
Association of Wellsville and more recently as Central Federal Bank.
The consolidated financial statements include Central Federal Corporation (the
“Holding Company”) and its wholly-owned subsidiary, CFBank (together
referred to as the “Company”). Intercompany transactions and balances
are eliminated in consolidation.
Central Federal Capital Trust I (the “Trust”), a wholly owned subsidiary
of the Holding Company, was formed in 2003 to raise additional funding for the
Company. The Holding Company is not considered the primary beneficiary of this
trust (variable interest entity) and, therefore, the trust is not consolidated
in the Company’s financial statements, but rather the subordinated debentures
are shown as a liability.
Currently, the Company does not transact material business other than through
CFBank.
CFBank is a community-oriented financial institution offering a variety of
financial services to meet the needs of the communities we serve. Our business
model emphasizes personalized service, clients’ access to decision makers,
solution-driven lending and quick execution, efficient use of technology and
the convenience of online internet banking, mobile banking, remote deposit and
corporate cash management. We attract retail and business deposits from the
general public and use the deposits, together with borrowings and other funds,
primarily to originate commercial and commercial real estate loans, single-family
and multi-family residential mortgage loans and home equity lines of credit.
The majority of our customers are small businesses, small business owners and
consumers.
Revenues are derived principally from the generation of interest and fees on
loans originated and, to a lesser extent, interest and dividends on securities.
Our primary sources of funds are retail and business deposit accounts and certificates
of deposit, brokered certificates of deposit and, to a lesser extent, principal
and interest payments on loans and securities, Federal Home Loan Bank (FHLB)
advances, other borrowings and proceeds from the sale of loans.
Our principal market area for loans and deposits includes the following Ohio
counties: Summit County through our office in Fairlawn, Ohio; Franklin County
through our office in Worthington, Ohio; Columbiana County through our offices
in Calcutta and Wellsville, Ohio; and Cuyahoga County, through our loan production
office in Woodmere, Ohio. We originate commercial and residential real estate
loans and business loans primarily throughout Ohio.
The types of loans originated are subject to federal and state laws and regulations.
Interest rates charged on loans are affected by the demand for such loans, the
supply of money available for lending purposes and the rates offered by competitors.
In turn, these factors are affected by, among other things, economic conditions,
fiscal policies of the federal government, monetary policies of the FRB and
legislative tax policies.
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