Central Federal Corp., parent company of CFBank, lost money in the first quarter ended June 30, but not as much as it did the previous year.
Meanwhile, the future of the bank and its management is in question as it awaits the results of a new stock offering.
The Fairlawn-based company, with branches in Fairlawn, Worthington, Calcutta and Wellsville, had a loss of $684,000 for the quarter, compared to a loss of $1.9 million for the same period a year ago.
Management said there was a decrease of $232,000 and $1.5 million, respectively, in the provision for loan losses for the three- and six-month periods.
Company Chief Executive Officer Eloise L. Mackus said “our progress continues at a steady pace. We began our workout efforts in June of 2010.
“We remain committed to the continued improvement of our asset quality,” she said.
The stock offering is part of a restructuring that includes a purchase agreement with a group of investors, depending on the offering’s results. A “rights period” ended July 16 and the common stock offering ended Tuesday.
The company said federal regulators have not objected to the appointment of the standby purchasers to the board of directors and as operating executives of the company upon completion of the stock offering.
Mackus said if the purchase goes forward, current Chairman Jerry F. Whitmer has been asked to stay on as a director; Mackus has been asked to stay on as general counsel. Therese A. Liutkus, now president and chief financial officer, has been asked to stay on as just chief financial officer.
But the company noted that without additional capital, it was unlikely that it would “have sufficient liquidity to continue to meet its operating expenses” and that CFBank might not pay dividends without regulatory approval.
Betty Lin-Fisher can be reached at 330-996-3724 or blinfisher@thebeaconjournal.com.
