Central Federal Corp., the parent of CFBank, National Association, has agreed to issue up to $25 million in common and convertible preferred stock in a private placement to institutional and other accredited investors. The company intends to use the proceeds from the private placement to fund organic growth of Worthington-headquartered CFBank, to support CFBank’s capital ratios and for general corporate purposes.
An affiliate of Castle Creek Capital LLC, a California-based private equity firm and investor in the financial institutions sector, is the lead institutional investor in the private placement. Following the closing, Castle Creek is expected to own approximately 9.9 percent of the company’s voting common stock and a significant portion of the new class of non-voting preferred stock.
Central Federal Corp. is a financial holding company that owns 100 percent of the stock of CFBank, National Association, which was formed in Ohio in 1892 and converted from a federal savings association to a national bank on Dec. 1, 2016. CFBank has a presence in four major metro Ohio markets — Columbus, Cleveland, Cincinnati and Akron — as well as its two branch locations in Columbiana County, Ohio.