SCHEDULE: Castle Creek Reduces CF Bankshares Stake to 9.9%

Castle Creek Capital Partners VII, LP has reduced its beneficial ownership in CF Bankshares Inc. to 9.9% after selling 79,368 shares for over $1.9 million.

Summary

• Castle Creek Capital Partners VII, LP (Fund VII) sold an aggregate of 79,368 shares of CF Bankshares Inc. Voting Common Stock.
• The sales occurred in various open-market transactions between August 28, 2025, and September 4, 2025.
• Total proceeds from these sales amounted to $1,937,537.46, net of commissions and fees.
• Following these transactions, Fund VII now directly owns 492,080 shares of Voting Common Stock.
• Fund VII's beneficial ownership in CF Bankshares Inc. is 609,649 shares, representing approximately 9.9% of the Voting Common Stock.
• This beneficial ownership includes 492,080 directly held shares and 117,569 shares convertible from Non-Voting Common Stock, subject to an Ownership Cap.
• The 9.9% calculation is based on 6,158,076 shares of Voting Common Stock outstanding, which includes 5,772,207 shares outstanding as of August 4, 2025, an increase of 268,300 shares converted on September 4, 2025, and 117,569 shares convertible under the Ownership Cap.

Sentiment

Score: 4

Explanation: The reduction in a significant institutional investor's stake, while a routine disclosure, could be interpreted as a slight negative signal regarding the investor's long-term conviction or a rebalancing of their portfolio. However, it does not necessarily indicate fundamental issues with the company itself.

Positives

• The company's stock demonstrated sufficient liquidity for a major institutional investor to sell a significant block of shares in open-market transactions.

Negatives

• A significant institutional investor, Castle Creek Capital Partners VII, LP, has reduced its stake in CF Bankshares Inc. by selling 79,368 shares.
• The reduction in ownership from a major investor could be perceived negatively by the market, potentially signaling a change in investment thesis or a move to rebalance portfolios.

Risks

• No specific risks beyond the change in ownership are mentioned in this Schedule 13D amendment.

Future Outlook

This filing does not contain any forward-looking statements or guidance regarding the company's future performance or strategic direction.

Industry Context

This filing primarily concerns a change in beneficial ownership by an institutional investor and does not provide information to analyze broader industry trends or competitor actions. However, institutional investor activity, particularly reductions in significant stakes, can sometimes reflect broader sentiment towards the banking sector or specific regional banks, though this filing does not offer explicit details to draw such conclusions.

Comparison to Industry Standards

• This filing does not provide information that allows for a direct comparison of CF Bankshares Inc.'s results to global industry benchmarks or specific comparable companies/projects. It focuses solely on the ownership changes of a specific investor.

Stakeholder Impact

• Shareholders: Existing shareholders may view the reduction in stake by a major institutional investor as a potential negative signal, which could influence stock price.
• Company Management: The company's management will be aware of the change in its shareholder base and the implications for investor relations.

Next Steps

• This filing does not mention any specific future actions, events, or milestones for CF Bankshares Inc. or Castle Creek Capital Partners VII, LP beyond the reported transactions.

Key Dates

Recommendation

While a significant institutional investor has reduced its stake, this filing alone does not provide sufficient fundamental information about CF Bankshares Inc. to warrant a 'buy' or 'sell' recommendation. The sale could be due to portfolio rebalancing or a change in investment strategy by Castle Creek, rather than a direct negative assessment of CF Bankshares' fundamentals. Investors should 'hold' and await further financial disclosures or company-specific news to make a more informed decision.

Keywords

CF Bankshares, Castle Creek Capital, Schedule 13D, stock sale, beneficial ownership, institutional investor, bankshares, financial services, equity stake