CF Bankshares Inc. (NASDAQ: CFBK) extended its share repurchase program through August 15, 2026, authorizing the company to buy back up to 325,000 shares—about 5% of its outstanding common stock. The board approved the extension on December 17, 2025, and the company disclosed the decision on December 18, 2025, after the original program was set to expire on January 31, 2026.
The extension comes on the heels of the company’s Q3 2025 earnings, which reported net income of $2.3 million and earnings per share of $0.36, falling short of the $0.84 consensus estimate. The miss was largely driven by a $5.1 million provision for credit losses, which reduced net income from $4.2 million in Q3 2024. Despite the earnings shortfall, the bank’s net interest margin rose 35 basis points, its cost of funds fell 58 basis points, and its efficiency ratio improved to 49.8% from 55.3% in the prior quarter, underscoring stronger operating leverage and cost discipline.
Management cited the company’s intrinsic value as a key driver for the buyback extension. An independent valuation places CF Bankshares’ intrinsic value at $41.85 per share, well above the market price of $23.75, indicating that the shares are undervalued. CEO Timothy T. O’Dell said, “We continue to believe our stock is a good value, and the Board’s approval of the extension reflects confidence in our business model and intrinsic value and demonstrates our commitment to enhancing shareholder value.”
Operationally, the bank’s financial health supports the extended buyback. Net interest margin growth and a tighter cost of funds profile have improved profitability, while the efficiency ratio decline signals better expense management. These metrics provide the cash flow flexibility needed to fund share repurchases without compromising capital adequacy or growth initiatives.
The company has also maintained a steady dividend policy, raising its dividend for six consecutive years, and the board’s decision to extend the buyback program aligns with its broader capital allocation strategy. The resignation of board member Sundeep Rana on December 17, 2025, following a change in ownership stake, did not alter the board’s stance on shareholder returns. Together, these actions reinforce CF Bankshares’ focus on delivering value to shareholders while sustaining operational resilience.
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