Cf Bankshares Inc. Liquidation Value

CF Bankshares Inc. (CFBK) is a single-bank holding company operating CFBank, a federally chartered savings bank. As of December 31, 2025, total assets are $2.12 billion, total liabilities are $1.93 billion, and reported book equity (per XBRL tag Assets minus Liabilities) implies approximately $184 million in stockholders' equity. MFFAIS-computed cash liquidation value is $253 million, which aligns broadly with reported book equity adjusted for the lens haircuts described below.

Under a liquidation lens, the asset side is dominated by the net loan portfolio at $1.74 billion (gross $1.76 billion less allowance of $17.7 million). Applying a typical community bank loan haircut of 75-85 cents on the dollar to gross loans yields realized value of roughly $1.32-1.50 billion — a potential shortfall of $250-440 million relative to book. This is the primary driver of recovery uncertainty. Cash and cash equivalents of $259 million recover at par. Available-for-sale securities of $17.5 million carry unrealized losses of $1.7 million against amortized cost of $19.2 million; recovery approximates fair value. BOLI of $28 million is generally realizable at or near book on surrender, though surrender charges and tax treatment limit net proceeds. Other assets of $50.7 million include $26.4 million in LIHTC and historic tax credit investments (at amortized cost), which carry near-zero liquidation value as partnership interests with restricted transferability. PP&E net book value is not explicitly tagged in full but accumulated depreciation is $2.4 million, indicating a relatively small physical asset base with modest recovery risk.

On the liability side, deposits of $1.78 billion (including $400 million in brokered deposits) stand at face value. Brokered deposits are typically more rate-sensitive and harder to retain, but in liquidation they remain a face-value claim. FHLB long-term advances of $101 million, subordinated notes and trust preferred obligations, and operating lease liabilities of $5.9 million (undiscounted total commitments of $7.7 million) also remain at face. The Holding Company's third-party credit facility (approximately $43 million outstanding per the Q3 2025 10-Q MD&A, not separately tagged in the 10-K XBRL) adds to the liability stack; the 10-K does not separately tag this facility amount in XBRL, so it is flagged here.

Accumulated other comprehensive loss narrowed to $(1.4) million from $(1.8) million at December 31, 2024, reflecting partial recovery in AFS unrealized positions. LIHTC and HTC investments grew to $26.4 million from $22.1 million at year-end 2024 — a $4.3 million increase in an asset class with zero liquidation recovery, widening the gap between book equity and recoverable value. Unfunded LIHTC/HTC commitments of $14.5 million represent off-balance-sheet obligations that would survive a wind-up and must be settled at face. The filing also notes a contingent tax liability of up to $473,000 on pre-1988 bad debt reserves that would crystallize in a liquidation or partial liquidation of CFBank. Nonaccrual loans of $15.3 million (of which $7.5 million have no allowance) signal modest but present credit stress within the portfolio.