C&F Financial (CFFI) 10-Q 9 May 18 2018 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2018	May 07, 2018
Document and Entity Information
Entity Registrant Name	C & F FINANCIAL CORP
Document Type	10-Q
Amendment Flag	false
Entity Central Index Key	913,341
Entity Filer Category	Accelerated Filer
Entity Current Reporting Status	Yes
Document Period End Date	Mar. 31, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q1
Entity Common Stock, Shares Outstanding		3,503,294
Current Fiscal Year End Date	--12-31

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Assets
Cash and due from banks	$ 12,360	$ 14,070
Interest-bearing deposits in other banks	135,688	105,353
Total cash and cash equivalents	148,048	119,423
Securities—available for sale at fair value, amortized cost of $206,563 and $207,893, respectively	218,408	218,976
Loans held for sale, at fair value	39,654	55,384
Loans, net of allowance for loan losses of $36,335 and $37,066, respectively	992,505	992,062
Restricted stocks, at cost	3,498	3,443
Corporate premises and equipment, net	36,867	36,969
Other real estate owned, net of valuation allowance of $57 and $86, respectively	168	168
Accrued interest receivable	7,189	7,589
Goodwill	14,425	14,425
Core deposit and other amortizable intangible assets, net	1,459	1,594
Bank-owned life insurance	15,684	15,589
Net deferred tax asset	12,569	12,093
Other assets	34,452	31,341
Total assets	1,524,926	1,509,056
Deposits
Noninterest-bearing demand deposits	267,121	247,669
Savings and interest-bearing demand deposits	564,615	575,807
Time deposits	354,357	347,953
Total deposits	1,186,093	1,171,429
Short-term borrowings	19,741	20,621
Long-term borrowings	122,029	122,029
Trust preferred capital notes	25,219	25,210
Accrued interest payable	845	838
Other liabilities	28,300	27,227
Total liabilities	1,382,227	1,367,354
Commitments and contingent liabilities
Shareholders’ equity
Common stock ($1.00 par value, 8,000,000 shares authorized, 3,487,147 and 3,472,561 shares issued and outstanding, respectively, includes 138,530 and 141,755 of unvested shares, respectively)	3,369	3,358
Additional paid-in capital	12,925	12,800
Retained earnings	130,133	127,431
Accumulated other comprehensive loss, net	(3,728)	(1,887)
Total shareholders’ equity	142,699	141,702
Total liabilities and shareholders’ equity	$ 1,524,926	$ 1,509,056

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Consolidated Balance Sheets
Available-for-sale securities, amortized cost	$ 220,143	$ 218,168
Loans, allowance for loan losses	35,600	35,726
Other real estate owned, valuation allowance	$ 57	$ 57
Common stock par value (in dollars per share)	$ 1	$ 1
Common stock, shares authorized	8,000,000	8,000,000
Common stock, shares issued	3,502,317	3,495,845
Common stock, shares outstanding	3,502,317	3,495,845
Common stock, nonvested shares	133,350	137,880

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Interest income
Interest and fees on loans	$ 20,817	$ 20,368
Interest on interest-bearing deposits and federal funds sold	464	209
Interest and dividends on securities
U.S. government agencies and corporations	87	78
Mortgage-backed securities	484	338
Tax-exempt obligations of states and political subdivisions	715	863
Taxable obligations of states and political subdivisions	71	52
Corporate bonds and other	106	113
Total interest income	22,744	22,021
Interest expense
Savings and interest-bearing deposits	364	287
Time deposits	956	848
Borrowings	973	852
Trust preferred capital notes	283	283
Total interest expense	2,576	2,270
Net interest income	20,168	19,751
Provision for loan losses	3,300	4,400
Net interest income after provision for loan losses	16,868	15,351
Noninterest income
Gains on sales of loans	2,239	1,943
Service charges on deposit accounts	1,049	1,069
Other service charges and fees	1,060	1,195
Net gains on calls of available for sale securities	5	1
Wealth management services income, net	425	322
Interchange income	906	851
Other	762	889
Total noninterest income	6,446	6,270
Noninterest expenses
Salaries and employee benefits	10,733	10,793
Occupancy	2,031	1,971
Other	5,775	5,205
Total noninterest expenses	18,539	17,969
Income before income taxes	4,775	3,652
Income tax expense	883	921
Net income	$ 3,892	$ 2,731
Net income per share - basic (in dollars per share)	$ 1.11	$ 0.78
Net income – assuming dilution (in Dollars per share)	$ 1.11	$ 0.78
Weighted average number of shares - basic (in shares)	3,501,164	3,483,007
Weighted average number of shares - assuming dilution (in shares)	3,501,164	3,483,323

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2018	Mar. 31, 2017
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income		$ 3,892	$ 2,731
Changes in defined benefit plan assets and benefit obligations
Changes in net gain arising during the period	[1]	29	38
Tax effect		(6)	(13)
Amortization of prior service cost arising during the period	[1]	(15)	(15)
Tax effect		3	5
Net of tax amount		11	15
Unrealized gains on cash flow hedging instruments
Unrealized holding gains arising during the period		212	65
Tax effect		(55)	(25)
Net of tax amount		157	40
Unrealized holding losses on securities
Unrealized holding (losses) gains arising during the period		(2,538)	306
Tax effect		533	(107)
Reclassification adjustment for gains included in net income	[2]	(5)	(1)
Tax effect		1
Net of tax amount		(2,009)	198
Other comprehensive (loss) income		(1,841)	253
Comprehensive income		$ 2,051	$ 2,984
[1]	These items are included in the computation of net periodic benefit cost and are included in “Noninterest income-Other” on the Consolidated Statements of Income. See “Note 6: Employee Benefit Plans,” for additional information.
[2]	Gains are included in “Net gains on calls of available for sale securities" on the Consolidated Statements of Income.

Consolidated Statements of Shar

Consolidated Statements of Shareholders’ Equity - USD ($) $ in Thousands	Common Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Loss	Total
Balance, beginning of the period at Dec. 31, 2016	$ 3,331	$ 11,705	$ 125,162	$ (984)	$ 139,214
Comprehensive income:
Net income			2,731		2,731
Other comprehensive (loss)/income				253	253
Stock options exercised	2	81			83
Share-based compensation		403			403
Restricted stock vested	15	(15)
Common stock issued	1	36			37
Common stock purchased	(4)	(181)			(185)
Cash dividends declared – common stock			(1,150)		(1,150)
Balance, end of period at Mar. 31, 2017	3,345	12,029	126,743	(731)	141,386
Balance, beginning of the period at Dec. 31, 2017	3,358	12,800	127,431	(1,887)	141,702
Comprehensive income:
Net income			3,892		3,892
Other comprehensive (loss)/income				(1,841)	(1,841)
Share-based compensation		319			319
Restricted stock vested	14	(14)
Common stock issued	1	35			36
Common stock purchased	(4)	(215)			(219)
Cash dividends declared – common stock			(1,190)		(1,190)
Balance, end of period at Mar. 31, 2018	$ 3,369	$ 12,925	$ 130,133	$ (3,728)	$ 142,699

Consolidated Statements of Sha7

Consolidated Statements of Shareholders’ Equity (Parentheticals) - $ / shares	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
Cash dividends declared – common stock (in dollars per share)	$ 0.34	$ 0.33

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Operating activities:
Net income	$ 3,892	$ 2,731
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	727	654
Provision for loan losses	3,300	4,400
Provision for indemnifications	36	36
Share-based compensation	319	403
Net accretion of certain acquisition-related fair value adjustments	(829)	(325)
Net amortization of discounts and amortization of premiums on securities	497	407
Amortization of other intangibles	40	40
Realized gains on calls of securities	(5)	(1)
Net realized losses on sales of other real estate owned		2
Net realized gains on sale of corporate premises and equipment	(27)
Income from bank-owned life insurance	(81)	(84)
Origination of loans held for sale	(143,903)	(141,097)
Proceeds from sales of loans held for sale	161,872	153,790
Gains on sales of loans held for sale	(2,239)	(1,943)
Change in other assets and liabilities:
Accrued interest receivable	400	496
Other assets	(2,898)	492
Accrued interest payable	7	5
Other liabilities	1,037	(3,485)
Net cash provided by operating activities	22,145	16,521
Investing activities:
Proceeds from maturities, calls and sales of securities available for sale and payments on mortgage-backed securities	12,735	11,368
Purchases of securities available for sale	(15,150)	(14,523)
Net purchases of restricted stocks	(55)	(40)
Net increase in loans	(2,840)	(8,031)
Proceeds from sales of other real estate owned		25
Purchases of corporate premises and equipment, net	(621)	(569)
Net cash used in investing activities	(5,931)	(11,770)
Financing activities:
Net increase in demand, interest-bearing demand and savings deposits	8,260	11,348
Net increase in time deposits	6,404	1,255
Net (decrease) increase in borrowings	(880)	1,198
Issuance of common stock	36	37
Purchase of common stock, including shares withheld to pay taxes	(219)	(185)
Proceeds from exercise of stock options		83
Cash dividends	(1,190)	(1,150)
Net cash provided by financing activities	12,411	12,586
Net increase in cash and cash equivalents	28,625	17,337
Cash and cash equivalents at beginning of periods	119,423	103,201
Cash and cash equivalents at end of period	148,048	120,538
Supplemental disclosure
Interest paid	2,560	2,256
Income taxes paid	8	14
Supplemental disclosure of noncash investing and financing activities
Unrealized (losses) gains on securities available for sale	(2,538)	306
Transfers from loans to other real estate owned		208
Pension adjustment	14	23
Unrealized gains on cash flow hedging instruments	$ 212	$ 65

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2018
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	NOTE (Unaudited) NOTE 1: Summary of Significant Accounting Policies Principles of Consolidation: The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) for interim financial reporting and with applicable quarterly reporting regulations of the Securities and Exchange Commission (the SEC). They do not include all of the information and notes required by U.S. GAAP for complete financial statements. Therefore, these consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the C&F Financial Corporation Annual Report on Form 10-K for the year ended December 31, 2017. The unaudited consolidated financial statements include the accounts of C&F Financial Corporation (the Corporation) and its wholly owned subsidiary, Citizens and Farmers Bank (the Bank or C&F Bank). All significant intercompany accounts and transactions have been eliminated in consolidation. In addition, the Corporation owns C&F Financial Statutory Trust I, C&F Financial Statutory Trust II and Central Virginia Bankshares Statutory Trust I, all of which are unconsolidated subsidiaries. The subordinated debt owed to these trusts is reported as a liability of the Corporation. The accounting and reporting policies of C&F Financial Corporation and Subsidiary conform to U.S. GAAP and to predominant practices within the banking industry. Nature of Operations: The Corporation is a bank holding company incorporated under the laws of the Commonwealth of Virginia. The Corporation owns all of the stock of its subsidiary, C&F Bank, which is an independent commercial bank chartered under the laws of the Commonwealth of Virginia. C&F Bank has five wholly-owned subsidiaries: C&F Mortgage Corporation and Subsidiary (C&F Mortgage), C&F Finance Company (C&F Finance), C&F Wealth Management Corporation (C&F Wealth Management), C&F Insurance Services, Inc. and CVB Title Services, Inc., all incorporated under the laws of the Commonwealth of Virginia. C&F Mortgage, organized in September 1995, was formed to originate and sell residential mortgages and through its subsidiary, Certified Appraisals LLC, provides ancillary mortgage loan production services for residential appraisals. C&F Finance, acquired on September 1, 2002, is a finance company purchasing automobile, boat and recreational vehicle (RV) loans through indirect lending programs. C&F Wealth Management, organized in April 1995, is a full-service brokerage firm offering a comprehensive range of wealth management services and insurance products through an alliance with an independent broker/dealer. C&F Insurance Services, Inc., organized in July 1999, owns an equity interest in an insurance agency that sells insurance products to customers of C&F Bank, C&F Mortgage and other financial institutions that have an equity interest in the agency. CVB Title Services, Inc. was organized for the primary purpose of owning membership interests in two insurance-related limited liability companies. Business segment data is presented in Note 8. Basis of Presentation: The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the allowance for indemnifications, impairment of loans, impairment of securities, the valuation of other real estate owned, the projected benefit obligation under the defined benefit pension plan, the valuation of deferred taxes and goodwill impairment. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, which are necessary for a fair presentation of the results of operations in these financial statements, have been made. Reclassification: Certain reclassifications have been made to the prior period financial statements to conform to the current period presentation. None of these reclassifications are considered material. Derivative Financial Instruments: The Corporation recognizes derivative financial instruments at fair value as either an other asset or other liability in the consolidated balance sheet. The Corporation’s derivative financial instruments may include (1) interest rate lock commitments (IRLCs) on mortgage loans that will be sold in the secondary market on a best efforts basis and the related forward commitments to sell mortgage loans, (2) interest rate swaps with certain qualifying commercial loan customers and dealer counterparties and (3) interest rate swaps that qualify as cash flow hedges on the Corporation’s trust preferred capital notes. Because the IRLCs, forward sales commitments and interest rate swaps with loan customers and dealer counterparties are not designated as hedging instruments, adjustments to reflect unrealized gains and losses resulting from changes in the fair value of these instruments are reported as noninterest income or noninterest expense, as applicable. The effective portion of the gain or loss on the Corporation’s cash flow hedges is reported as a component of other comprehensive income, net of deferred income taxes, and reclassified into earnings in the same period(s) during which the hedged transactions affect earnings. The Corporation’s derivative financial instruments are described more fully in Note 10. Share-Based Compensation: Shared-based compensation expense, net of forfeitures, for the first quarter of 2018 was $319,000 ($237,000 after tax) for restricted stock granted during 2013 through 2018. As of March 31, 2018, there was $3.28 million of total unrecognized compensation expense related to unvested restricted stock that will be recognized over the remaining requisite service periods. A summary of activity for restricted stock awards during the first three months of 2018 and 2017 is presented below: 2018 Weighted- Average Grant Date Shares Fair Value Unvested, December 31, 2017 137,880 $ 43.52 Granted 11,210 58.40 Vested (14,125) 40.05 Forfeited (1,615) 42.78 Unvested, March 31, 2018 133,350 $ 45.14 2017 Weighted- Average Grant Date Shares Fair Value Unvested, December 31, 2016 141,755 $ 39.77 Granted 15,275 45.40 Vested (14,950) 34.73 Forfeited (910) 41.58 Unvested, March 31, 2017 141,170 $ 40.90 Recently Adopted Accounting Pronouncements: On January 1, 2018, the Corporation adopted Accounting Standards Update (ASU) 2014-09, “ Revenue from Contracts with Customers (Topic 606) ,” and all amendments thereto (collectively, ASU 2014-09), which (i) creates a single framework for recognizing revenue from contracts with customers that fall within its scope and (ii) revises when it is appropriate to recognize a gain/loss from the transfer of nonfinancial assets, such as other real estate owned (OREO). The Corporation adopted ASU 2014-09 using the modified retrospective method applied to all contracts not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under ASU 2014-09, while prior period amounts continue to be reported in accordance with pronouncements in effect prior to January 1, 2018. The adoption of ASU 2014-09 did not result in a change to the accounting for any of the in-scope revenue streams; therefore, no cumulative effect adjustment was recorded. Most revenue associated with the Corporation’s financial instruments, including interest income and gains/losses on investment securities, derivatives and sales of financial instruments are outside the scope of ASU 2014-09. The Corporation’s services that fall within the scope of ASU 2014-09 are presented within noninterest income and are recognized as revenue as the Corporation satisfies its obligation to the customer. A description of the Corporation’s primary revenue streams accounted for under ASU 2014-09 follows: Service Charges on Deposit Accounts. The Corporation earns fees from its deposit customers for overdraft and account maintenance services. Overdraft fees are recognized when the overdraft occurs. Account maintenance fees, which relate primarily to monthly maintenance, are earned over the course of a month, representing the period over which the company satisfies the performance obligation. Other Service Charges and Fees. The Corporation earns fees from its customers for transaction-based services. Such services include safe deposit box, ATM, stop payment and wire transfer fees at the retail banking segment and on-line payment processing and statement request fees at the consumer finance segment. In each case, these service charges and fees are recognized in income at the time or within the same period that the Corporation’s performance obligation is satisfied. Interchange Income. The Corporation earns interchange fees from debit and affinity credit cardholder transactions conducted through various payment networks. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized daily, concurrently with the transaction processing services. Wealth Management Services Income. The Corporation earns wealth management services income by providing investment brokerage services and health and life insurance products to its customers through third-party service providers. Fees that are transaction-based (e.g., execution of trades) are recognized on a monthly basis. Other fees, or commissions, are earned over time as the contracted monthly or quarterly services are provided and are generally assessed based on either account activity or the market value of assets under management at month end. Gains/Losses on Sales of OREO . The Corporation records a gain/loss from the sale of OREO when control of the property transfers to the buyer, which generally occurs at the time of an executed deed. When the Corporation finances the sale of OREO to the buyer, the Corporation assesses whether the buyer is committed to perform the obligations under the contract and whether collectability of the transaction price is probable. In determining the gain/loss on the sale, the Corporation adjusts the transaction price and the related gain/loss on sale if a significant financing component is present. On January 1, 2018, the Corporation adopted ASU 2016-01, “Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” ASU 2016-01 makes targeted improvements to several areas of U.S. GAAP including the disclosure of the fair value of financial instruments that are not measured at fair value on a recurring basis. The new guidance, among other things, (i) eliminates the requirements to disclose the methods and significant assumptions used to estimate the fair value and the description of the changes therein, if any, during the period, (ii) requires the use of the exit price notion in calculating the fair values of financial instruments not measured at fair value on a recurring basis and (iii) eliminates the guidance that allowed the use of the entry price notion to calculate the fair value of certain financial instruments, such as loans and long-term debt. Accordingly, the Corporation measured its loan portfolio as of March 31, 2018 using an exit price notion (see Note 7: Fair Value of Assets and Liabilities). On January 1, 2018, the Bank adopted ASU 2017-07, “ Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost .” ASU 2017-07 requires that the service cost component of the net periodic benefit cost be presented with other employee compensation costs and that the remaining components be presented in the aggregate with noninterest income or noninterest expense, as appropriate. This guidance is required to be applied on a retrospective basis. Accordingly, $126,000 was reclassified from “Salaries and employee benefits” to “Noninterest income – Other” on the Consolidated Statements of Income for the three months ended March 31, 2017 to reflect the adoption of ASU 2017-07. Recent Significant Accounting Pronouncements: In February 2016, the Financial Accounting Standards Board (FASB) issued ASU 2016-02, “ Leases (Topic 842) .” Among other things, in the amendments in ASU 2016-02, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: (1) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (2) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. Certain targeted improvements were made to align, where necessary, lessor accounting with the lessee accounting model and Topic 606, Revenue from Contracts with Customers. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. The Corporation has completed an inventory of all buildings and equipment it leases from third parties. The Corporation has not yet determined an estimate of the effect that ASU 2016-02 will have on its financial statements. In June 2016, the FASB issued ASU 2016-13, “ Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” , as part of its project on financial instruments. ASU 2016-13 introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments. It also modifies the impairment model for available-for-sale debt securities and provides for a simplified accounting model for purchased financial assets with credit deterioration since their origination. For public business entities that are SEC filers, the new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption will be permitted for all organizations for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Corporation has established a working group that is in the process of gathering historical data and evaluating appropriate portfolio segmentation and modeling methods. The Corporation has not yet determined an estimate of the effect that ASU 2016-13 will have on its financial statements. In January 2017, the FASB issued ASU 2017-04, “ Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment ”, which removes the requirement to compare the implied fair value of goodwill with its carrying amount as part of step 2 of the goodwill impairment test. As a result, under ASU 2017-04, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. ASU 2017-04 is effective for public business entities that are SEC filers for annual and interim periods beginning after December 15, 2019. Early adoption is permitted. The Corporation does not expect the adoption of ASU 2017-04 to have a material effect on its financial statements. In March 2017, the FASB issued ASU 2017-08, “ Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20) ”, which requires all entities that hold investments in callable debt securities at a premium to amortize the premium to the earliest call date. ASU 2017-08 does not require an accounting change for securities held at a discount. ASU 2017-08 is effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted. The Corporation does not expect the adoption of ASU 2017-08 to have a material effect on its financial statements. In August 2017, the FASB issued ASU 2017-12, “ Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities .” The amendments in this ASU modify the designation and measurement guidance for hedge accounting as well as provide for increased transparency regarding the presentation of economic results on both the financial statements and related footnotes. Certain aspects of hedge effectiveness assessments will also be simplified upon implementation of this update. The amendments are effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2018. Early adoption is permitted, including adoption in any interim period. The Corporation does not expect the adoption of ASU 2017-12 to have a material effect on its financial statements. Other accounting standards that have been issued by the FASB or other standards-setting bodies are not expected to have a material effect on the Corporation’s financial position, results of operations or cash flows.

Securities

Securities	3 Months Ended
	Mar. 31, 2018
Securities
Securities	NOTE 2: Securities The Corporation’s debt securities, all of which are classified as available for sale, at March 31, 2018 and December 31, 2017 are summarized as follows: March 31, 2018 Gross Gross Amortized Unrealized Unrealized (Dollars in thousands) Cost Gains Losses Fair Value U.S. government agencies and corporations $ 16,512 $ — $ (609) $ 15,903 Mortgage-backed securities 104,096 48 (2,295) 101,849 Obligations of states and political subdivisions 99,535 1,490 (369) 100,656 $ 220,143 $ 1,538 $ (3,273) $ 218,408 December 31, 2017 Gross Gross Amortized Unrealized Unrealized (Dollars in thousands) Cost Gains Losses Fair Value U.S. government agencies and corporations $ 16,514 $ — $ (341) $ 16,173 Mortgage-backed securities 97,677 142 (761) 97,058 Obligations of states and political subdivisions 103,977 2,022 (254) 105,745 $ 218,168 $ 2,164 $ (1,356) $ 218,976 The amortized cost and estimated fair value of securities at March 31, 2018 and December 31, 2017, by the earlier of contractual maturity or expected maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to prepay obligations with or without call or prepayment penalties. March 31, 2018 December 31, 2017 Amortized Amortized (Dollars in thousands) Cost Fair Value Cost Fair Value Due in one year or less $ 41,742 $ 41,832 $ 40,247 $ 40,460 Due after one year through five years 158,872 156,904 159,444 159,571 Due after five years through ten years 15,624 15,649 15,254 15,452 Due after ten years 3,905 4,023 3,223 3,493 $ 220,143 $ 218,408 $ 218,168 $ 218,976 The following table presents the gross realized gains and losses on and the proceeds from the (1) sale of securities and (2) maturities and calls of securities during the three months ended March 31, 2018 and 2017. Three Months Ended March 31, (Dollars in thousands) 2018 2017 Realized gains from sales of securities: Gross realized gains $ — $ — Gross realized losses — — Net realized gains $ — $ — Proceeds from sales of securities $ — $ — Realized gains from maturities and calls of securities: Gross realized gains $ 5 $ 1 Gross realized losses — — Net realized gains $ 5 $ 1 Proceeds from maturities, calls and paydowns of securities $ 12,735 $ 11,368 The Corporation pledges securities to primarily secure public deposits and repurchase agreements. Securities with an aggregate amortized cost of $110.46 million and an aggregate fair value of $109.77 million were pledged at March 31, 2018. Securities with an aggregate amortized cost of $118.70 million and an aggregate fair value of $119.26 million were pledged at December 31, 2017. Securities in an unrealized loss position at March 31, 2018, by duration of the period of the unrealized loss, are shown below. Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Loss Value Loss Value Loss U.S. government agencies and corporations $ 2,932 $ 68 $ 12,971 $ 541 $ 15,903 $ 609 Mortgage-backed securities 75,589 1,540 21,045 755 96,634 2,295 Obligations of states and political subdivisions 25,222 193 8,778 176 34,000 369 Total temporarily impaired securities $ 103,743 $ 1,801 $ 42,794 $ 1,472 $ 146,537 $ 3,273 There were 244 debt securities totaling $146.54 million considered temporarily impaired at March 31, 2018. The primary cause of the temporary impairments in the Corporation's investments in debt securities was fluctuations in interest rates. Interest rates increased during the first quarter of 2018, more significantly in the short-term portion of the United States Treasury security yield curve, thereby increasing unrealized losses on the Corporation’s debt securities. The Corporation’s mortgage-backed securities are entirely issued by either U.S. government agencies or U.S. government-sponsored enterprises. Collectively, these entities provide a guarantee, which is either explicitly or implicitly supported by the full faith and credit of the U.S. government, that investors in such mortgage-backed securities will receive timely principal and interest payments. At March 31, 2018, approximately 97 percent of the Corporation's obligations of states and political subdivisions, as measured by market value, were rated “A” or better by Standard & Poor's (S&P) or Moody's Investors Service (Moody’s). Of those in a net unrealized loss position, approximately 98 percent were rated “A” or better by S&P or Moody’s, as measured by market value, at March 31, 2018. For the approximately two percent not rated “A” or better, as measured by market value at March 31, 2018, the Corporation considers these to meet regulatory credit quality standards, meaning that the securities have low risk of default by the obligor, and the full and timely repayment of principal and interest is expected over the expected life of the investment. Because the Corporation intends to hold these investments in debt securities to maturity and it is more likely than not that the Corporation will not be required to sell these investments before a recovery of unrealized losses, the Corporation does not consider these investments to be other-than-temporarily impaired at March 31, 2018 and no other-than-temporary impairment has been recognized. Securities in an unrealized loss position at December 31, 2017, by duration of the period of the unrealized loss, are shown below. Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Loss Value Loss Value Loss U.S. government agencies and corporations $ 2,972 $ 31 $ 13,201 $ 310 $ 16,173 $ 341 Mortgage-backed securities 57,116 341 22,545 420 79,661 761 Obligations of states and political subdivisions 18,644 117 9,363 137 28,007 254 Total temporarily impaired securities $ 78,732 $ 489 $ 45,109 $ 867 $ 123,841 $ 1,356 The Corporation’s investment in restricted stocks totaled $3.50 million at March 31, 2018 and consisted of both Federal Home Loan Bank (FHLB) stock and Community Bankers Bank (CBB) stock. Restricted stocks are generally viewed as long-term investments, which are carried at cost because there is no market for the stock other than the FHLBs with respect to FHLB stock, or member institutions with respect to CBB stock. Therefore, when evaluating restricted stock for impairment, their respective values are based on the ultimate recoverability of the par value rather than by recognizing temporary declines in value. The Corporation does not consider its investment in restricted stocks to be other-than-temporarily impaired at March 31, 2018 and no impairment has been recognized. Total restricted stocks is shown as a separate line item on the Consolidated Balance Sheets and is not a part of the available-for-sale securities portfolio.

Loans

Loans	3 Months Ended
	Mar. 31, 2018
Loans
Loans	NOTE 3: Loans Major classifications of loans are summarized as follows: March 31, December 31, (Dollars in thousands) 2018 2017 Real estate – residential mortgage $ 181,994 $ 184,863 Real estate – construction 1 61,691 44,782 Commercial, financial and agricultural 2 424,162 437,884 Equity lines 54,445 55,237 Consumer 13,487 13,018 Consumer finance 292,326 292,004 1,028,105 1,027,788 Less allowance for loan losses (35,600) (35,726) Loans, net $ 992,505 $ 992,062 1 Includes the Corporation's real estate construction lending and consumer real estate lot lending. 2 Includes the Corporation’s commercial real estate lending, land acquisition and development lending, builder line lending and commercial business lending. Consumer loans included $210,000 and $290,000 of demand deposit overdrafts at March 31, 2018 and December 31, 2017, respectively. The outstanding principal balance and the carrying amount of loans acquired pursuant to the Corporation's acquisition of Central Virginia Bank (CVB) on October 1, 2013 (or acquired loans) that were recorded at fair value at the acquisition date and are included in the Consolidated Balance Sheets at March 31, 2018 and December 31, 2017 were as follows: March 31, 2018 December 31, 2017 Acquired Loans - Acquired Loans - Acquired Loans - Acquired Loans - Purchased Purchased Acquired Loans - Purchased Purchased Acquired Loans - (Dollars in thousands) Credit Impaired Performing Total Credit Impaired Performing Total Outstanding principal balance $ 12,053 $ 43,808 $ 55,861 $ 12,856 $ 45,083 $ 57,939 Carrying amount Real estate – residential mortgage $ 490 $ 10,678 $ 11,168 $ 492 $ 10,855 $ 11,347 Commercial, financial and agricultural 1 2,253 21,630 23,883 2,472 22,305 24,777 Equity lines 140 9,293 9,433 139 9,621 9,760 Consumer — 10 10 — 12 12 Total acquired loans $ 2,883 $ 41,611 $ 44,494 $ 3,103 $ 42,793 $ 45,896 1 Includes acquired loans classified by the Corporation as commercial real estate lending, land acquisition and development lending, builder line lending and commercial business lending. Loans on nonaccrual status were as follows: March 31, December 31, (Dollars in thousands) 2018 2017 Real estate – residential mortgage $ 798 $ 830 Commercial, financial and agricultural: Commercial real estate lending 2,060 3,796 Commercial business lending 29 34 Equity lines 839 651 Consumer — — Consumer finance 563 764 Total loans on nonaccrual status $ 4,289 $ 6,075 The past due status of loans as of March 31, 2018 was as follows: 90+ Days 30 - 59 Days 60 - 89 Days 90+ Days Total Past Due and (Dollars in thousands) Past Due Past Due Past Due Past Due PCI Current 1 Total Loans Accruing 2 Real estate – residential mortgage $ 218 $ 21 $ 39 $ 278 $ 490 $ 181,226 $ 181,994 $ 157 Real estate – construction: Construction lending — — — — — 53,916 53,916 — Consumer lot lending — — — — — 7,775 7,775 — Commercial, financial and agricultural: Commercial real estate lending 32 315 77 424 2,253 299,254 301,931 77 Land acquisition and development lending — — — — — 35,526 35,526 — Builder line lending — — — — — 29,573 29,573 — Commercial business lending 867 — — 867 — 56,265 57,132 — Equity lines 675 — 111 786 140 53,519 54,445 111 Consumer 14 — — 14 — 13,473 13,487 — Consumer finance 7,705 1,401 563 9,669 — 282,657 292,326 — Total $ 9,511 $ 1,737 $ 790 $ 12,038 $ 2,883 $ 1,013,184 $ 1,028,105 $ 345 1 For the purposes of the table above, “Current” includes loans that are 1-29 days past due. 2 Includes purchased credit impaired (PCI) loans of $157,000. The table above includes the following: · nonaccrual loans that are current of $2.99 million, 30-59 days past due of $694,000, 60-89 days past due of $2,000 and 90+ days past due of $602,000. · performing loans purchased in the acquisition of CVB that are current of $41.56 million, 30-59 days past due of $29,000 and 60-89 days past due of $20,000. The past due status of loans as of December 31, 2017 was as follows: 90+ Days 30 - 59 Days 60 - 89 Days 90+ Days Total Past Due and (Dollars in thousands) Past Due Past Due Past Due Past Due PCI Current 1 Total Loans Accruing 2 Real estate – residential mortgage $ 1,905 $ 14 $ 245 $ 2,164 $ 492 $ 182,207 $ 184,863 $ 90 Real estate – construction: Construction lending — — — — — 41,449 41,449 — Consumer lot lending — — — — — 3,333 3,333 — Commercial, financial and agricultural: Commercial real estate lending 241 — 3,874 4,115 2,472 297,903 304,490 78 Land acquisition and development lending — — — — — 39,844 39,844 — Builder line lending 685 — — 685 — 28,911 29,596 — Commercial business lending — — 2 2 — 63,952 63,954 2 Equity lines 550 — 136 686 139 54,412 55,237 136 Consumer 9 — — 9 — 13,009 13,018 — Consumer finance 12,273 2,061 764 15,098 — 276,906 292,004 — Total $ 15,663 $ 2,075 $ 5,021 $ 22,759 $ 3,103 $ 1,001,926 $ 1,027,788 $ 306 1 For the purposes of the table above, “Current” includes loans that are 1-29 days past due. 2 Includes PCI loans of $90,000. The table above includes the following: · nonaccrual loans that are current of $890,000, 30-59 days past due of $458,000, 60‑89 days past due of $14,000 and 90+ days past due of $4.70 million. · performing loans purchased in the acquisition of CVB that are current of $42.53 million, 30-59 days past due of $137,000, 60-89 days past due of $14,000 and 90+ days past due of $115,000. Loan modifications that were classified as troubled debt restructurings (TDRs) during the three months ended March 31, 2018 and 2017 were as follows: Three Months Ended March 31, 2018 2017 Pre- Post- Pre- Post- Modification Modification Modification Modification Number of Recorded Recorded Number of Recorded Recorded (Dollars in thousands) Loans Investment Investment Loans Investment Investment Commercial, financial and agricultural: Commercial real estate lending – interest rate and term concession — $ — $ — 3 $ 4,646 $ 4,646 Commercial real estate lending – interest rate concession — — — 1 12 12 Total — $ — $ — 4 $ 4,658 $ 4,658 A TDR payment default occurs when, within 12 months of the original TDR modification, either a full or partial charge-off occurs or a TDR becomes 90 days or more past due. There were no TDR payment defaults during the three months ended March 31, 2018 and 2017. Impaired loans, which consisted solely of TDRs, and the related allowance at March 31, 2018 were as follows: Recorded Recorded Investment Investment Average Unpaid in Loans in Loans Balance- Interest Principal without with Related Impaired Income (Dollars in thousands) Balance Specific Reserve Specific Reserve Allowance Loans Recognized Real estate – residential mortgage $ 3,724 $ 1,712 $ 1,908 $ 208 $ 3,683 $ 43 Commercial, financial and agricultural: Commercial real estate lending 5,243 2,751 2,219 667 5,943 39 Commercial business lending 37 31 — — 31 — Equity lines 32 31 — — 32 — Consumer 321 — 322 7 321 3 Total $ 9,357 $ 4,525 $ 4,449 $ 882 $ 10,010 $ 85 Impaired loans, which consisted solely of TDRs, and the related allowance at December 31, 2017 were as follows: Recorded Recorded Investment Investment Average Unpaid in Loans in Loans Balance- Interest Principal without with Related Impaired Income (Dollars in thousands) Balance Specific Reserve Specific Reserve Allowance Loans Recognized Real estate – residential mortgage $ 3,745 $ 1,603 $ 2,033 $ 214 $ 3,743 $ 184 Commercial, financial and agricultural: Commercial real estate lending 6,981 2,841 4,031 615 7,818 168 Commercial business lending 41 35 — — 45 — Equity lines 32 31 — — 32 2 Consumer 321 322 — — 321 13 Total $ 11,120 $ 4,832 $ 6,064 $ 829 $ 11,959 $ 367 PCI loans had an unpaid principal balance of $12.05 million and a carrying value of $2.88 million at March 31, 2018. Determining the fair value of purchased credit impaired loans required the Corporation to estimate cash flows expected to result from those loans and to discount those cash flows at appropriate rates of interest. For such loans, the excess of the cash flows expected at acquisition over the estimated fair value is recognized as interest income over the remaining lives of the loans and is called the accretable yield. The difference between contractually required payments at acquisition and the cash flows expected to be collected at acquisition reflects the effect of estimated credit losses and is called the nonaccretable difference, and is not recorded. In accordance with U.S. GAAP, there was no carry-over of the previously established allowance for loan losses for acquired loans. The following table presents a summary of the change in the accretable yield of the PCI loan portfolio: Three Months Ended March 31, (Dollars in thousands) 2018 2017 Accretable yield, balance at beginning of period $ 7,304 $ 8,637 Accretion (837) (683) Reclassification of nonaccretable difference due to improvement in expected cash flows 731 328 Other changes, net (398) (566) Accretable yield, balance at end of period $ 6,800 $ 7,716

Allowance for Loan Losses

Allowance for Loan Losses	3 Months Ended
	Mar. 31, 2018
Allowance for Loan Losses
Allowance for Loan Losses	NOTE 4: Allowance for Loan Losses The following table presents the changes in the allowance for loan losses by major classification during the three months ended March 31, 2018: Real Estate Commercial, Residential Real Estate Financial & Equity Consumer (Dollars in thousands) Mortgage Construction Agricultural Lines Consumer Finance Total Allowance for loan losses: Balance at December 31, 2017 $ 2,371 $ 605 $ 7,478 $ 688 $ 231 $ 24,353 $ 35,726 Provision charged (credited) to operations (16) 251 (238) — 3 3,300 3,300 Loans charged off — — (2) — (71) (4,583) (4,656) Recoveries of loans previously charged off 22 — 5 — 48 1,155 1,230 Balance at March 31, 2018 $ 2,377 $ 856 $ 7,243 $ 688 $ 211 $ 24,225 $ 35,600 The following table presents the changes in the allowance for loan losses by major classification during the three months ended March 31, 2017: Real Estate Commercial, Residential Real Estate Financial & Equity Consumer (Dollars in thousands) Mortgage Construction Agricultural Lines Consumer Finance Total Allowance for loan losses: Balance at December 31, 2016 $ 2,559 $ 816 $ 7,393 $ 685 $ 261 $ 25,352 $ 37,066 Provision charged (credited) to operations (33) (75) 259 27 (78) 4,300 4,400 Loans charged off (5) — (153) — (62) (5,678) (5,898) Recoveries of loans previously charged off 14 — 7 — 41 1,104 1,166 Balance at March 31, 2017 $ 2,535 $ 741 $ 7,506 $ 712 $ 162 $ 25,078 $ 36,734 The following table presents, as of March 31, 2018, the total allowance for loan losses, the allowance by impairment methodology, total loans and loans by impairment methodology. Real Estate Commercial, Residential Real Estate Financial & Equity Consumer (Dollars in thousands) Mortgage Construction Agricultural Lines Consumer Finance Total Allowance for loan losses: Ending balance at March 31, 2018 $ 2,377 $ 856 $ 7,243 $ 688 $ 211 $ 24,225 $ 35,600 Ending balance: individually evaluated for impairment $ 208 $ — $ 667 $ — $ 7 $ — $ 882 Ending balance: collectively evaluated for impairment $ 2,169 $ 856 $ 6,576 $ 688 $ 204 $ 24,225 $ 34,718 Ending balance: acquired loans - PCI $ — $ — $ — $ — $ — $ — $ — Loans: Ending balance at March 31, 2018 $ 181,994 $ 61,691 $ 424,162 $ 54,445 $ 13,487 $ 292,326 $ 1,028,105 Ending balance: individually evaluated for impairment $ 3,620 $ — $ 5,001 $ 31 $ 322 $ — $ 8,974 Ending balance: collectively evaluated for impairment $ 177,884 $ 61,691 $ 416,908 $ 54,274 $ 13,165 $ 292,326 $ 1,016,248 Ending balance: acquired loans - PCI $ 490 $ — $ 2,253 $ 140 $ — $ — $ 2,883 The following table presents, as of December 31, 2017, the total allowance for loan losses, the allowance by impairment methodology, total loans and loans by impairment methodology. Real Estate Commercial, Residential Real Estate Financial & Equity Consumer (Dollars in thousands) Mortgage Construction Agricultural Lines Consumer Finance Total Allowance for loan losses: Ending balance at December 31, 2017 $ 2,371 $ 605 $ 7,478 $ 688 $ 231 $ 24,353 $ 35,726 Ending balance: individually evaluated for impairment $ 214 $ — $ 615 $ — $ — $ — $ 829 Ending balance: collectively evaluated for impairment $ 2,157 $ 605 $ 6,863 $ 688 $ 231 $ 24,353 $ 34,897 Ending balance: acquired loans - PCI $ — $ — $ — $ — $ — $ — $ — Loans: Ending balance at December 31, 2017 $ 184,863 $ 44,782 $ 437,884 $ 55,237 $ 13,018 $ 292,004 $ 1,027,788 Ending balance: individually evaluated for impairment $ 3,636 $ — $ 6,907 $ 31 $ 322 $ — $ 10,896 Ending balance: collectively evaluated for impairment $ 180,735 $ 44,782 $ 428,505 $ 55,067 $ 12,696 $ 292,004 $ 1,013,789 Ending balance: acquired loans - PCI $ 492 $ — $ 2,472 $ 139 $ — $ — $ 3,103 Loans by credit quality indicators as of March 31, 2018 were as follows: Special Substandard (Dollars in thousands) Pass Mention Substandard Nonaccrual Total 1 Real estate – residential mortgage $ 178,151 $ 525 $ 2,520 $ 798 $ 181,994 Real estate – construction: Construction lending 53,916 — — — 53,916 Consumer lot lending 7,195 580 — — 7,775 Commercial, financial and agricultural: Commercial real estate lending 293,273 2,541 4,057 2,060 301,931 Land acquisition and development lending 21,362 769 13,395 — 35,526 Builder line lending 29,573 — — — 29,573 Commercial business lending 56,874 16 213 29 57,132 Equity lines 52,937 462 207 839 54,445 Consumer 13,163 2 322 — 13,487 $ 706,444 $ 4,895 $ 20,714 $ 3,726 $ 735,779 1 At March 31, 2018, the Corporation did not have any loans classified as Doubtful or Loss. Included in the table above are loans purchased in connection with the acquisition of CVB of $41.52 million pass rated, $952,000 special mention, $1.88 million substandard and $146,000 substandard nonaccrual. Non- (Dollars in thousands) Performing Performing Total Consumer finance $ 291,763 $ 563 $ 292,326 Loans by credit quality indicators as of December 31, 2017 were as follows: Special Substandard (Dollars in thousands) Pass Mention Substandard Nonaccrual Total 1 Real estate – residential mortgage $ 179,963 $ 1,235 $ 2,835 $ 830 $ 184,863 Real estate – construction: Construction lending 41,449 — — — 41,449 Consumer lot lending 3,333 — — — 3,333 Commercial, financial and agricultural: Commercial real estate lending 293,292 2,874 4,528 3,796 304,490 Land acquisition and development lending 24,253 — 15,591 — 39,844 Builder line lending 29,596 — — — 29,596 Commercial business lending 63,749 34 137 34 63,954 Equity lines 53,870 465 251 651 55,237 Consumer 12,693 3 322 — 13,018 $ 702,198 $ 4,611 $ 23,664 $ 5,311 $ 735,784 1 At December 31, 2017, the Corporation did not have any loans classified as Doubtful or Loss. Included in the table above are loans purchased in connection with the acquisition of CVB of $42.67 million pass rated, $1.09 million special mention, $1.98 million substandard and $161,000 substandard nonaccrual. Non- (Dollars in thousands) Performing Performing Total Consumer finance $ 291,240 $ 764 $ 292,004

Shareholders_ Equity, Other Com

Shareholders’ Equity, Other Comprehensive Income and Earnings Per Share	3 Months Ended
	Mar. 31, 2018
Shareholders’ Equity, Other Comprehensive Income and Earnings Per Share
Shareholders’ Equity, Other Comprehensive Income and Earnings Per Share	NOTE 5: Shareholders’ Equity, Other Comprehensive Income and Earnings Per Share Shareholders’ Equity During the first three months of 2018 and 2017, no shares of the Corporation’s common stock were purchased under the share repurchase program authorized by the Corporation’s Board of Directors. The Corporation withheld 3,737 and 4,049 shares of its common stock from employees to satisfy tax withholding obligations arising upon the vesting of restricted shares during the first three months of 2018 and 2017, respectively. Accumulated Other Comprehensive Loss The following table presents the cumulative balances of the components of accumulated other comprehensive income, net of deferred taxes of $968,000 and $491,000 as of March 31, 2018 and December 31, 2017, respectively. March 31, December 31, (Dollars in thousands) 2018 2017 Net unrealized (losses) gains on securities $ (1,371) $ 638 Net unrecognized gains on cash flow hedges 281 124 Net unrecognized losses on defined benefit plan (2,638) (2,649) Total accumulated other comprehensive loss $ (3,728) $ (1,887) Earnings Per Share (EPS) The components of the Corporation’s EPS calculations are as follows: Three Months Ended March 31, (Dollars in thousands) 2018 2017 Net income $ 3,892 $ 2,731 Weighted average number of shares used in earnings per share—basic 3,501,164 3,483,007 Effect of dilutive securities: Stock option awards — 316 Weighted average number of shares used in earnings per share—assuming dilution 3,501,164 3,483,323 The Corporation has applied the two-class method of computing basic and diluted EPS for each period presented because the Corporation’s unvested restricted shares outstanding contain rights to nonforfeitable dividends. Accordingly, the weighted average number of shares used in the calculation of basic and diluted EPS includes both vested and unvested shares outstanding. Potential shares that may be issued by the Corporation for its stock option awards are determined using the treasury stock method. Accordingly, anti-dilutive shares are not included in computing diluted earnings per share. There were no anti-dilutive stock options outstanding for the three months ended March 31, 2017. There were no stock options outstanding during the first quarter of 2018.

Employee Benefit Plans

Employee Benefit Plans	3 Months Ended
	Mar. 31, 2018
Employee Benefit Plans
Employee Benefit Plans	NOTE 6: Employee Benefit Plans The components of net periodic benefit cost for the Bank’s non-contributory cash balance pension plan are as follows: Three Months Ended March 31, (Dollars in thousands) 2018 2017 Components of net periodic benefit cost: Service cost, included in salaries and employee benefits $ 306 $ 282 Other components of net periodic pension cost: Interest cost 133 138 Expected return on plan assets (318) (287) Amortization of prior service cost (15) (15) Recognized net actuarial loss 29 38 Other components of net periodic pension cost, included in other noninterest income (171) (126) Net periodic benefit cost $ 135 $ 156

Fair Value of Assets and Liabil

Fair Value of Assets and Liabilities	3 Months Ended
	Mar. 31, 2018
Fair Value of Assets and Liabilities
Fair Value of Assets and Liabilities	NOTE 7: Fair Value of Assets and Liabilities Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. U.S. GAAP requires that valuation techniques maximize the use of observable inputs and minimize the use of unobservable inputs. U.S. GAAP also establishes a fair value hierarchy which prioritizes the valuation inputs into three broad levels. Based on the underlying inputs, each fair value measurement in its entirety is reported in one of the three levels. These levels are: · Level 1—Valuation is based upon quoted prices for identical instruments traded in active markets. Level 1 assets and liabilities include debt and equity securities traded in an active exchange market, as well as U.S. Treasury securities. · Level 2—Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. · Level 3—Valuation is determined using model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect the Corporation's estimates of assumptions that market participants would use in pricing the respective asset or liability. Valuation techniques may include the use of pricing models, discounted cash flow models and similar techniques. U.S. GAAP allows an entity the irrevocable option to elect fair value (the fair value option) for the initial and subsequent measurement for certain financial assets and liabilities on a contract-by-contract basis. The Corporation has elected to use fair value accounting for its entire portfolio of loans held for sale (LHFS). Assets and Liabilities Measured at Fair Value on a Recurring Basis The following describes the valuation techniques and inputs used by the Corporation in determining the fair value of certain assets recorded at fair value on a recurring basis in the financial statements. Securities available for sale. The Corporation primarily values its investment portfolio using Level 2 fair value measurements, but may also use Level 1 or Level 3 measurements if required by the composition of the portfolio. At March 31, 2018 and December 31, 2017, the Corporation's entire investment securities portfolio was comprised of securities available for sale, which were valued using Level 2 fair value measurements. The Corporation has contracted with third party portfolio accounting service vendors for valuation of its securities portfolio. The vendors’ sources for security valuation are ICE Data Services (ICE) and Thomson Reuters Pricing Service (TRPS). Each source provides opinions, known as evaluated prices, as to the value of individual securities based on model-based pricing techniques that are partially based on available market data, including prices for similar instruments in active markets and prices for identical assets in markets that are not active. ICE provides evaluated prices for the Corporation's obligations of states and political subdivisions category of securities. ICE uses proprietary pricing models and pricing systems, mathematical tools and judgment to determine an evaluated price for a security based upon a hierarchy of market information regarding that security or securities with similar characteristics. TRPS provides evaluated prices for the Corporation's U.S. government agencies and corporations and mortgage-backed categories of securities. Fixed-rate callable securities of the U.S. government agencies and corporations category are individually evaluated on an option adjusted spread basis for callable issues or on a nominal spread basis incorporating the term structure of agency market spreads and the appropriate risk free benchmark curve for non-callable issues. Fixed-rate securities issued by the Small Business Association in the U.S. government agencies and corporations category are individually evaluated based upon a hierarchy of security specific information and market data regarding that security or securities with similar characteristics. Pass-through mortgage-backed securities (MBS) in the mortgage-backed category are grouped into aggregate categories defined by issuer program, weighted average coupon, and weighted average maturity. Each aggregate is benchmarked to a relative mortgage-backed to-be-announced (TBA) or other benchmark price. TBA prices are obtained from market makers and live trading systems. Collateralized mortgage obligations in the mortgage-backed category are individually evaluated based upon a hierarchy of security specific information and market data regarding that security or securities with similar characteristics. Each evaluation is determined using an option adjusted spread and prepayment model based on volatility-driven, multi-dimensional spread tables. Loans held for sale (LHFS). Fair value of the Corporation’s LHFS is based on observable market prices for similar instruments traded in the secondary mortgage loan markets in which the Corporation conducts business. The Corporation's portfolio of LHFS is classified as Level 2. Derivative asset (liability) - IRLCs. The Corporation recognizes IRLCs at fair value. Fair value of IRLCs is based on either (i) the price of the underlying loans obtained from an investor for loans that will be delivered on a best efforts basis or (ii) the observable price for individual loans traded in the secondary market for loans that will be delivered on a mandatory basis. All of the Corporation's IRLCs are classified as Level 2. Derivative asset (liability) – interest rate swaps on loans. The Corporation recognizes interest rate swaps at fair value. The Corporation has contracted with a third party vendor to provide valuations for these interest rate swaps using standard valuation techniques. All of the Corporation’s interest rate swaps on loans are classified as Level 2. Derivative asset (liability) - cash flow hedges. The Corporation recognizes cash flow hedges at fair value. The fair value of the Corporation’s cash flow hedges is determined using the discounted cash flow method. All of the Corporation’s cash flow hedges are classified as Level 2. The following table presents the balances of financial assets and liabilities measured at fair value on a recurring basis. March 31, 2018 Fair Value Measurements Using Assets/Liabilities at (Dollars in thousands) Level 1 Level 2 Level 3 Fair Value Assets: Securities available for sale U.S. government agencies and corporations $ — $ 15,903 $ — $ 15,903 Mortgage-backed securities — 101,849 — 101,849 Obligations of states and political subdivisions — 100,656 — 100,656 Total securities available for sale — 218,408 — 218,408 Loans held for sale — 39,654 — 39,654 Derivative asset - IRLC — 1,264 — 1,264 Derivative asset - interest rate swaps on loans — 1,897 — 1,897 Derivative asset - cash flow hedges — 378 — 378 Total assets $ — $ 261,601 $ — $ 261,601 Liabilities: Derivative liability - interest rate swaps on loans $ — $ 1,897 $ — $ 1,897 Total liabilities $ — $ 1,897 $ — $ 1,897 December 31, 2017 Fair Value Measurements Using Assets/Liabilities at (Dollars in thousands) Level 1 Level 2 Level 3 Fair Value Assets: Securities available for sale U.S. government agencies and corporations $ — $ 16,173 $ — $ 16,173 Mortgage-backed securities — 97,058 — 97,058 Obligations of states and political subdivisions — 105,745 — 105,745 Total securities available for sale — 218,976 — 218,976 Loans held for sale — 55,384 — 55,384 Derivative asset - IRLC — 528 — 528 Derivative asset - interest rate swaps on loans — 1,261 — 1,261 Derivative asset - cash flow hedges — 166 — 166 Total assets $ — $ 276,315 $ — $ 276,315 Liabilities: Derivative liability - interest rate swaps on loans $ — $ 1,261 $ — $ 1,261 Total liabilities $ — $ 1,261 $ — $ 1,261 Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis The Corporation may be required, from time to time, to measure and recognize certain assets at fair value on a nonrecurring basis in accordance with U. S. GAAP. The following describes the valuation techniques and inputs used by the Corporation in determining the fair value of certain assets recorded at fair value on a nonrecurring basis in the financial statements. Impaired loans. The Corporation does not record loans held for investment at fair value on a recurring basis. However, there are instances when a loan is considered impaired and an allowance for loan losses is established. A loan is considered impaired when it is probable that the Corporation will be unable to collect all interest and principal payments as scheduled in the loan agreement. All TDRs are considered impaired loans. The Corporation measures impairment on a loan-by-loan basis for commercial, construction and residential loans in excess of $500,000 by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. Additionally, management reviews current market conditions, borrower history, past experience with similar loans and economic conditions. Based on management’s review, additional write-downs to fair value may be incurred. The Corporation maintains a valuation allowance to the extent that the measure of the impaired loan is less than the recorded investment. When the fair value of an impaired loan is based solely on observable cash flows, market price or a current appraisal, the Corporation records the impaired loan as nonrecurring Level 2. However, if based on management’s review, additional write-downs to fair value are required or if the impaired loan otherwise does not meet the standards for Level 2 classification, the Corporation records the impaired loan as nonrecurring Level 3. The measurement of impaired loans of less than $500,000, with the exception of Commercial loan TDRs, is based on each loan’s future cash flows discounted at the loan’s effective interest rate rather than the market rate of interest, which is not a fair value measurement and is therefore excluded from fair value disclosure requirements. OREO. Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value less estimated costs to sell at the date of foreclosure. Initial fair value is based upon appraisals the Corporation obtains from independent licensed appraisers. Subsequent to foreclosure, management periodically performs valuations of the foreclosed assets based on updated appraisals, general market conditions, recent sales of similar properties, length of time the properties have been held, and our ability and intent with regard to continued ownership of the properties. The Corporation may incur additional write-downs of foreclosed assets to fair value less estimated costs to sell if valuations indicate a further deterioration in market conditions. As such, the Corporation records OREO as nonrecurring Level 3. The following table presents the balances of assets measured at fair value on a non recurring basis. March 31, 2018 Fair Value Measurements Using Assets at Fair (Dollars in thousands) Level 1 Level 2 Level 3 Value Impaired loans, net $ — $ — $ 1,576 $ 1,576 Other real estate owned, net — — 168 168 Total $ — $ — $ 1,744 $ 1,744 December 31, 2017 Fair Value Measurements Using Assets at Fair (Dollars in thousands) Level 1 Level 2 Level 3 Value Impaired loans, net $ — $ — $ 3,438 $ 3,438 Other real estate owned, net — — 168 168 Total $ — $ — $ 3,606 $ 3,606 The following table presents quantitative information about Level 3 fair value measurements for financial assets measured at fair value on a non-recurring basis as of March 31, 2018: Fair Value Measurements at March 31, 2018 (Dollars in thousands) Fair Value Valuation Technique(s) Unobservable Inputs Range of Inputs Impaired loans, net $ 1,576 Appraisals Discount to reflect current market conditions and estimated selling costs 18% - 30% Other real estate owned, net 168 Appraisals Discount to reflect current market conditions and estimated selling costs 28% Total $ 1,744 Fair Value of Financial Instruments FASB ASC 825, Financial Instruments , requires disclosure about fair value of financial instruments, including those financial assets and financial liabilities that are not required to be measured and reported at fair value on a recurring or nonrecurring basis. ASC 825 excludes certain financial instruments and all nonfinancial instruments from its disclosure requirements. Accordingly, the aggregate fair value amounts presented may not necessarily represent the underlying fair value of the Corporation. Additionally, in accordance with ASU 2016-01, which the Corporation adopted on January 1, 2018 on a prospective basis, the Corporation uses the exit price notion, rather than the entry price notion, in calculating the fair values of financial instruments not measured at fair value on a recurring basis. The following tables reflect the carrying amounts and estimated fair values of the Corporation’s financial instruments whether or not recognized on the balance sheet at fair value. Carrying Fair Value Measurements at March 31, 2018 Using Total Fair (Dollars in thousands) Value Level 1 Level 2 Level 3 Value Financial assets: Cash and short-term investments $ 148,048 $ 148,048 $ — $ — $ 148,048 Securities available for sale 218,408 — 218,408 — 218,408 Loans, net 992,505 — — 973,502 973,502 Loans held for sale 39,654 — 39,654 — 39,654 Derivative asset - IRLC 1,264 — 1,264 — 1,264 Derivative asset - interest rate swaps on loans 1,897 — 1,897 — 1,897 Derivative asset - cash flow hedges 378 — 378 — 378 Bank-owned life insurance 15,684 — 15,684 — 15,684 Accrued interest receivable 7,189 7,189 — — 7,189 Financial liabilities: Demand deposits $ 831,736 $ 831,736 $ — $ — $ 831,736 Time deposits 354,357 — 353,845 — 353,845 Borrowings 166,989 — 159,437 — 159,437 Derivative liability - interest rate swaps on loans 1,897 — 1,897 — 1,897 Accrued interest payable 845 845 — — 845 Carrying Fair Value Measurements at December 31, 2017 Using Total Fair (Dollars in thousands) Value Level 1 Level 2 Level 3 Value Financial assets: Cash and short-term investments $ 119,423 $ 119,423 $ — $ — $ 119,423 Securities available for sale 218,976 — 218,976 — 218,976 Loans, net 992,062 — — 983,620 983,620 Loans held for sale 55,384 — 55,384 — 55,384 Derivative asset - IRLC 528 — 528 — 528 Derivative asset - interest rate swaps on loans 1,261 — 1,261 — 1,261 Derivative asset - cash flow hedges 166 — 166 — 166 Bank-owned life insurance 15,589 — 15,589 — 15,589 Accrued interest receivable 7,589 7,589 — — 7,589 Financial liabilities: Demand deposits $ 823,476 $ 823,476 $ — $ — $ 823,476 Time deposits 347,953 — 350,681 — 350,681 Borrowings 167,860 — 159,670 — 159,670 Derivative liability - interest rate swaps on loans 1,261 — 1,261 — 1,261 Accrued interest payable 838 838 — — 838 The Corporation assumes interest rate risk (the risk that general interest rate levels will change) in the normal course of operations. As a result, the fair values of the Corporation’s financial instruments will change when interest rate levels change and that change may be either favorable or unfavorable to the Corporation. Management attempts to match maturities of assets and liabilities to the extent believed necessary to balance minimizing interest rate risk and increasing net interest income in current market conditions. However, borrowers with fixed rate obligations are less likely to prepay in a rising rate environment and more likely to prepay in a falling rate environment. Conversely, depositors who are receiving fixed rates are more likely to withdraw funds before maturity in a rising rate environment and less likely to do so in a falling rate environment. Management monitors interest rates, maturities and repricing dates of assets and liabilities and attempts to manage interest rate risk by adjusting terms of new loans, deposits and borrowings and by investing in securities with terms that mitigate the Corporation’s overall interest rate risk.

Business Segments

Business Segments	3 Months Ended
	Mar. 31, 2018
Business Segments
Business Segments	NOTE 8: Business Segments The Corporation operates in a decentralized fashion in three principal business segments: Retail Banking, Mortgage Banking and Consumer Finance. Revenues from Retail Banking operations consist primarily of interest earned on loans and investment securities and service charges on deposit accounts. Mortgage Banking operating revenues consist principally of gains on sales of loans in the secondary market, loan origination fee income and interest earned on mortgage loans held for sale. Revenues from Consumer Finance consist primarily of interest earned on purchased retail installment sales contracts. The Corporation’s other segment includes a full-service brokerage firm that derives revenues from offering wealth management services and insurance products through an alliance with an independent broker/dealer and an insurance company that derives revenues from owning an equity interest in an insurance agency that offers insurance products and services. The results of the other segment are not significant to the Corporation as a whole and have been included in “Other.” Revenue and expenses of the Corporation are also included in “Other,” and consist primarily of interest expense associated with the Corporation’s trust preferred capital notes and other general corporate expenses. Three Months Ended March 31, 2018 Retail Mortgage Consumer (Dollars in thousands) Banking Banking Finance Other Eliminations Consolidated Revenues: Interest income $ 13,160 $ 367 $ 10,849 $ — $ (1,632) $ 22,744 Gains on sales of loans — 2,239 — — — 2,239 Other noninterest income 2,619 857 248 483 — 4,207 Total operating income 15,779 3,463 11,097 483 (1,632) 29,190 Expenses: Provision for loan losses — — 3,300 — — 3,300 Interest expense 1,617 143 2,165 283 (1,632) 2,576 Salaries and employee benefits 6,486 1,443 2,265 539 — 10,733 Other noninterest expenses 4,981 1,275 1,307 243 — 7,806 Total operating expenses 13,084 2,861 9,037 1,065 (1,632) 24,415 Income (loss) before income taxes 2,695 602 2,060 (582) — 4,775 Income tax expense (benefit) 383 167 562 (229) — 883 Net income (loss) $ 2,312 $ 435 $ 1,498 $ (353) $ — $ 3,892 Total assets $ $ 54,516 $ 292,417 $ 5,066 $ (184,009) $ 1,524,926 Goodwill $ 3,702 $ — $ 10,723 $ — $ — $ 14,425 Capital expenditures $ 572 $ 21 $ 28 $ — $ — $ 621 Three Months Ended March 31, 2017 Retail Mortgage Consumer (Dollars in thousands) Banking Banking Finance Other Eliminations Consolidated Revenues: Interest income $ 11,972 $ 316 $ 11,206 $ — $ (1,473) $ 22,021 Gains on sales of loans — 1,943 — — — 1,943 Other noninterest income 2,624 1,087 232 384 — 4,327 Total operating income 14,596 3,346 11,438 384 (1,473) 28,291 Expenses: Provision for loan losses 100 — 4,300 — — 4,400 Interest expense 1,465 88 1,907 283 (1,473) 2,270 Salaries and employee benefits 6,359 1,483 2,412 539 — 10,793 Other noninterest expenses 4,443 1,279 1,253 201 — 7,176 Total operating expenses 12,367 2,850 9,872 1,023 (1,473) 24,639 Income (loss) before income taxes 2,229 496 1,566 (639) — 3,652 Income tax expense (benefit) 407 199 624 (309) — 921 Net income (loss) $ 1,822 $ 297 $ 942 $ (330) $ — $ 2,731 Total assets $ 1,305,717 $ 56,178 $ 301,506 $ 5,873 $ (204,810) $ 1,464,464 Goodwill $ 3,702 $ — $ 10,723 $ — $ — $ 14,425 Capital expenditures $ 379 $ 194 $ 13 $ 11 $ — $ 597 The Retail Banking segment extends a warehouse line of credit to the Mortgage Banking segment, providing a portion of the funds needed to originate mortgage loans. The Retail Banking segment charges the Mortgage Banking segment interest at the daily FHLB advance rate plus 50 basis points. The Retail Banking segment also provides the Consumer Finance segment with a portion of the funds needed to purchase loan contracts by means of variable rate notes that carry interest at one-month LIBOR plus 200 basis points and fixed rate notes that carry interest rates ranging from 2.0 percent to 8.0 percent. The Retail Banking segment acquires certain residential real estate loans from the Mortgage Banking segment at prices similar to those paid by third-party investors. These transactions are eliminated to reach consolidated totals. Certain corporate overhead costs incurred by the Retail Banking segment are not allocated to the Mortgage Banking, Consumer Finance and Other segments.

Commitments and Financial Instr

Commitments and Financial Instruments with Off-Balance-Sheet Risk	3 Months Ended
	Mar. 31, 2018
Commitments and Financial Instruments with Off-Balance-Sheet Risk
Commitments and Financial Instruments with Off-Balance-Sheet Risk	NOTE 9: Commitments and Financial Instruments with Off-Balance-Sheet Risk C&F Mortgage sells substantially all of the residential mortgage loans it originates to third-party counterparties (i.e., investors). As is customary in the industry, the agreements with these counterparties require C&F Mortgage to extend representations and warranties with respect to program compliance, borrower misrepresentation, fraud, and early payment performance. Under the agreements, the counterparties are entitled to make loss claims and repurchase requests of C&F Mortgage for loans that contain covered deficiencies. C&F Mortgage has obtained early payment default recourse waivers for a significant portion of its business. Recourse periods for early payment default for the remaining counterparties vary from 90 days up to one year. Recourse periods for borrower misrepresentation or fraud or underwriting error do not have a stated time limit. C&F Mortgage maintains an indemnification reserve for potential claims made under these recourse provisions. C&F Mortgage has adopted a reserve methodology whereby provisions are made to an expense account to fund a reserve maintained as a liability account on the balance sheet for potential losses. The loan performance data of sold loans is not made available to C&F Mortgage by the counterparties making the evaluation of potential losses inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. A schedule of expected losses on loans with claims or indemnifications is maintained to ensure the reserve is adequate to cover estimated losses. Often times, claims are not factually validated and they are rescinded. Once claims are validated and the actual or potential loss is agreed upon with the counterparties, the reserve is charged and a cash payment is made to settle the claim. The balance of the indemnification reserve has adequately provided for all claims in the three months ended March 31, 2018 and 2017. The following table presents the changes in the allowance for indemnification losses for the periods presented: Three Months Ended March 31, (Dollars in thousands) 2018 2017 Allowance, beginning of period $ 2,489 $ 2,303 Provision for indemnification losses 36 36 Payments — — Allowance, end of period $ 2,525 $ 2,339

Derivative Financial Instrument

Derivative Financial Instruments	3 Months Ended
	Mar. 31, 2018
Derivative Financial Instruments
Derivative Financial Instruments	NOTE 10: Derivative Financial Instruments The Corporation uses derivative financial instruments (or derivatives) primarily to manage risks to the Corporation associated with changing interest rates, and to assist customers with their risk management objectives. The Corporation designates certain derivatives as hedging instruments in a qualifying hedge accounting relationship (cash flow or fair value hedge). The remaining derivatives are classified as free standing derivatives consisting of customer accommodation loan swaps (or loan swaps) and interest rate lock commitments. Cash flow hedges . The Corporation designates derivatives as cash flow hedges when they are used to manage exposure to variability in cash flows on variable rate borrowings such as the Corporation’s trust preferred capital notes. The Corporation uses interest rate swap agreements as part of its hedging strategy by exchanging variable-rate interest payments on a notional amount equal to the principal amount of the borrowings for fixed-rate interest payments, with such interest rates set based on benchmarked interest rates. All interest rate swaps were entered into with counterparties that met the Corporation’s credit standards and the agreements contain collateral provisions protecting the at-risk party. The Corporation believes that the credit risk inherent in these derivative contracts is not significant. The terms and conditions of the interest rate swaps vary and amounts receivable or payable are recognized as accrued under the terms of the agreements. The Corporation assesses the effectiveness of each hedging relationship on a periodic basis. In accordance with ASC 815, Derivatives and Hedging , the effective portions of the derivatives’ unrealized gains or losses are recorded as a component of other comprehensive income. Based on the Corporation’s assessment its cash flow hedges are highly effective, but to the extent that any ineffectiveness exists in the hedge relationships, the amounts would be recorded in interest income and interest expense in the Corporation’s consolidated statements of income. Loan swaps . The Bank also enters into interest rate swaps with certain qualifying commercial loan customers to meet their interest rate risk management needs. The Bank simultaneously enters into interest rate swaps with dealer counterparties, with identical notional amounts and terms. The net result of these interest rate swaps is that the customer pays a fixed rate of interest and the Corporation receives a floating rate. These back-to-back loan swaps qualify as financial derivatives with fair values reported in “Other assets” and “Other liabilities” in the Consolidated Balance Sheet. Changes in fair value are recorded in other noninterest expense and net to zero because of the identical amounts and terms of the swaps. IRLCs . C&F Mortgage enters into IRLCs with customers to originate loans for which the interest rates are determined prior to funding. C&F Mortgage then mitigates interest rate risk on these IRLCs and loans held for sale by (a) entering into forward loan sales contracts with investors for loans to be delivered on a best efforts basis or (b) entering into forward sales contracts of mortgage backed securities for loans to be delivered on a mandatory basis. At March 31, 2018, each loan held for sale by C&F Mortgage was subject to a forward sales agreement on a best efforts basis. The fair value of these derivative instruments is reported in “Other assets” in the Consolidated Balance Sheet. The following tables summarize key elements of the Corporation’s derivative instruments as of March 31, 2018 and December 31, 2017, segregated by derivatives that are considered to be hedging instruments and those that are not: March 31, 2018 Notional Collateral (Dollars in thousands) Amount 1 Positions Assets 2 Liabilities 2 Pledged 3 Cash flow hedges: Interest rate swaps: Variable-rate to fixed-rate swaps with counterparty $ 25,000 3 $ 378 $ — $ — Not designated as hedges: Customer-related interest rate contracts: Matched interest rate swaps with borrower 45,046 7 216 1,681 — Matched interest rate swaps with counterparty 45,046 7 1,681 216 — Other contracts: Interest rate lock commitments 130,452 529 1,264 — — 1 Notional amounts are not recorded on the balance sheet and are generally used only as a basis on which interest and other payments are determined. 2 Balances represent the fair value of derivative financial instruments. 3 Collateral pledged may be comprised of cash or securities. December 31, 2017 Notional Collateral (Dollars in thousands) Amount 1 Positions Assets 2 Liabilities 2 Pledged 3 Cash flow hedges: Interest rate swaps: Variable-rate to fixed-rate swaps with counterparty $ 25,000 3 $ 166 $ — $ — Not designated as hedges: Customer-related interest rate contracts: Matched interest rate swaps with borrower 41,295 6 284 977 — Matched interest rate swaps with counterparty 41,295 6 977 284 — Other contracts: Interest rate lock commitments 99,140 440 528 — — 1 Notional amounts are not recorded on the balance sheet and are generally used only as a basis on which interest and other payments are determined. 2 Balances represent the fair value of derivative financial instruments. 3 Collateral pledged may be comprised of cash or securities.

Other Noninterest Expenses

Other Noninterest Expenses	3 Months Ended
	Mar. 31, 2018
Other Noninterest Expenses
Other Noninterest Expenses	NOTE 11: Other Noninterest Expenses The following table presents the significant components in the statements of income line “Noninterest Expenses-Other.” Three Months Ended March 31, (Dollars in thousands) 2018 2017 Data processing service and maintenance contracts $ 776 $ 649 Professional fees 739 706 Data processing fees 717 609 Marketing and advertising expenses 460 365 Travel and educational expenses 371 286 Telecommunication expenses 346 330 Interchange expense 334 249 All other noninterest expenses 2,032 2,011 Total other noninterest expenses $ 5,775 $ 5,205

Summary of Significant Accoun20

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2018
Summary of Significant Accounting Policies
Principles of Consolidation	Principles of Consolidation: The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) for interim financial reporting and with applicable quarterly reporting regulations of the Securities and Exchange Commission (the SEC). They do not include all of the information and notes required by U.S. GAAP for complete financial statements. Therefore, these consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the C&F Financial Corporation Annual Report on Form 10-K for the year ended December 31, 2017. The unaudited consolidated financial statements include the accounts of C&F Financial Corporation (the Corporation) and its wholly owned subsidiary, Citizens and Farmers Bank (the Bank or C&F Bank). All significant intercompany accounts and transactions have been eliminated in consolidation. In addition, the Corporation owns C&F Financial Statutory Trust I, C&F Financial Statutory Trust II and Central Virginia Bankshares Statutory Trust I, all of which are unconsolidated subsidiaries. The subordinated debt owed to these trusts is reported as a liability of the Corporation. The accounting and reporting policies of C&F Financial Corporation and Subsidiary conform to U.S. GAAP and to predominant practices within the banking industry.
Nature of Operations	Nature of Operations: The Corporation is a bank holding company incorporated under the laws of the Commonwealth of Virginia. The Corporation owns all of the stock of its subsidiary, C&F Bank, which is an independent commercial bank chartered under the laws of the Commonwealth of Virginia. C&F Bank has five wholly-owned subsidiaries: C&F Mortgage Corporation and Subsidiary (C&F Mortgage), C&F Finance Company (C&F Finance), C&F Wealth Management Corporation (C&F Wealth Management), C&F Insurance Services, Inc. and CVB Title Services, Inc., all incorporated under the laws of the Commonwealth of Virginia. C&F Mortgage, organized in September 1995, was formed to originate and sell residential mortgages and through its subsidiary, Certified Appraisals LLC, provides ancillary mortgage loan production services for residential appraisals. C&F Finance, acquired on September 1, 2002, is a finance company purchasing automobile, boat and recreational vehicle (RV) loans through indirect lending programs. C&F Wealth Management, organized in April 1995, is a full-service brokerage firm offering a comprehensive range of wealth management services and insurance products through an alliance with an independent broker/dealer. C&F Insurance Services, Inc., organized in July 1999, owns an equity interest in an insurance agency that sells insurance products to customers of C&F Bank, C&F Mortgage and other financial institutions that have an equity interest in the agency. CVB Title Services, Inc. was organized for the primary purpose of owning membership interests in two insurance-related limited liability companies. Business segment data is presented in Note 8.
Basis of Presentation	Basis of Presentation: The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the allowance for indemnifications, impairment of loans, impairment of securities, the valuation of other real estate owned, the projected benefit obligation under the defined benefit pension plan, the valuation of deferred taxes and goodwill impairment. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, which are necessary for a fair presentation of the results of operations in these financial statements, have been made.
Reclassification	Reclassification: Certain reclassifications have been made to the prior period financial statements to conform to the current period presentation. None of these reclassifications are considered material.
Derivative Financial Instruments	Derivative Financial Instruments: The Corporation recognizes derivative financial instruments at fair value as either an other asset or other liability in the consolidated balance sheet. The Corporation’s derivative financial instruments may include (1) interest rate lock commitments (IRLCs) on mortgage loans that will be sold in the secondary market on a best efforts basis and the related forward commitments to sell mortgage loans, (2) interest rate swaps with certain qualifying commercial loan customers and dealer counterparties and (3) interest rate swaps that qualify as cash flow hedges on the Corporation’s trust preferred capital notes. Because the IRLCs, forward sales commitments and interest rate swaps with loan customers and dealer counterparties are not designated as hedging instruments, adjustments to reflect unrealized gains and losses resulting from changes in the fair value of these instruments are reported as noninterest income or noninterest expense, as applicable. The effective portion of the gain or loss on the Corporation’s cash flow hedges is reported as a component of other comprehensive income, net of deferred income taxes, and reclassified into earnings in the same period(s) during which the hedged transactions affect earnings. The Corporation’s derivative financial instruments are described more fully in Note 10.
Share-Based Compensation	Share-Based Compensation: Shared-based compensation expense, net of forfeitures, for the first quarter of 2018 was $319,000 ($237,000 after tax) for restricted stock granted during 2013 through 2018. As of March 31, 2018, there was $3.28 million of total unrecognized compensation expense related to unvested restricted stock that will be recognized over the remaining requisite service periods. A summary of activity for restricted stock awards during the first three months of 2018 and 2017 is presented below: 2018 Weighted- Average Grant Date Shares Fair Value Unvested, December 31, 2017 137,880 $ 43.52 Granted 11,210 58.40 Vested (14,125) 40.05 Forfeited (1,615) 42.78 Unvested, March 31, 2018 133,350 $ 45.14 2017 Weighted- Average Grant Date Shares Fair Value Unvested, December 31, 2016 141,755 $ 39.77 Granted 15,275 45.40 Vested (14,950) 34.73 Forfeited (910) 41.58 Unvested, March 31, 2017 141,170 $ 40.90
Recently Adopted Accounting Pronouncements	Recently Adopted Accounting Pronouncements: On January 1, 2018, the Corporation adopted Accounting Standards Update (ASU) 2014-09, “ Revenue from Contracts with Customers (Topic 606) ,” and all amendments thereto (collectively, ASU 2014-09), which (i) creates a single framework for recognizing revenue from contracts with customers that fall within its scope and (ii) revises when it is appropriate to recognize a gain/loss from the transfer of nonfinancial assets, such as other real estate owned (OREO). The Corporation adopted ASU 2014-09 using the modified retrospective method applied to all contracts not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under ASU 2014-09, while prior period amounts continue to be reported in accordance with pronouncements in effect prior to January 1, 2018. The adoption of ASU 2014-09 did not result in a change to the accounting for any of the in-scope revenue streams; therefore, no cumulative effect adjustment was recorded. Most revenue associated with the Corporation’s financial instruments, including interest income and gains/losses on investment securities, derivatives and sales of financial instruments are outside the scope of ASU 2014-09. The Corporation’s services that fall within the scope of ASU 2014-09 are presented within noninterest income and are recognized as revenue as the Corporation satisfies its obligation to the customer. A description of the Corporation’s primary revenue streams accounted for under ASU 2014-09 follows: Service Charges on Deposit Accounts. The Corporation earns fees from its deposit customers for overdraft and account maintenance services. Overdraft fees are recognized when the overdraft occurs. Account maintenance fees, which relate primarily to monthly maintenance, are earned over the course of a month, representing the period over which the company satisfies the performance obligation. Other Service Charges and Fees. The Corporation earns fees from its customers for transaction-based services. Such services include safe deposit box, ATM, stop payment and wire transfer fees at the retail banking segment and on-line payment processing and statement request fees at the consumer finance segment. In each case, these service charges and fees are recognized in income at the time or within the same period that the Corporation’s performance obligation is satisfied. Interchange Income. The Corporation earns interchange fees from debit and affinity credit cardholder transactions conducted through various payment networks. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized daily, concurrently with the transaction processing services. Wealth Management Services Income. The Corporation earns wealth management services income by providing investment brokerage services and health and life insurance products to its customers through third-party service providers. Fees that are transaction-based (e.g., execution of trades) are recognized on a monthly basis. Other fees, or commissions, are earned over time as the contracted monthly or quarterly services are provided and are generally assessed based on either account activity or the market value of assets under management at month end. Gains/Losses on Sales of OREO . The Corporation records a gain/loss from the sale of OREO when control of the property transfers to the buyer, which generally occurs at the time of an executed deed. When the Corporation finances the sale of OREO to the buyer, the Corporation assesses whether the buyer is committed to perform the obligations under the contract and whether collectability of the transaction price is probable. In determining the gain/loss on the sale, the Corporation adjusts the transaction price and the related gain/loss on sale if a significant financing component is present. On January 1, 2018, the Corporation adopted ASU 2016-01, “Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” ASU 2016-01 makes targeted improvements to several areas of U.S. GAAP including the disclosure of the fair value of financial instruments that are not measured at fair value on a recurring basis. The new guidance, among other things, (i) eliminates the requirements to disclose the methods and significant assumptions used to estimate the fair value and the description of the changes therein, if any, during the period, (ii) requires the use of the exit price notion in calculating the fair values of financial instruments not measured at fair value on a recurring basis and (iii) eliminates the guidance that allowed the use of the entry price notion to calculate the fair value of certain financial instruments, such as loans and long-term debt. Accordingly, the Corporation measured its loan portfolio as of March 31, 2018 using an exit price notion (see Note 7: Fair Value of Assets and Liabilities). On January 1, 2018, the Bank adopted ASU 2017-07, “ Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost .” ASU 2017-07 requires that the service cost component of the net periodic benefit cost be presented with other employee compensation costs and that the remaining components be presented in the aggregate with noninterest income or noninterest expense, as appropriate. This guidance is required to be applied on a retrospective basis. Accordingly, $126,000 was reclassified from “Salaries and employee benefits” to “Noninterest income – Other” on the Consolidated Statements of Income for the three months ended March 31, 2017 to reflect the adoption of ASU 2017-07.
Recent Significant Accounting Pronouncements	Recent Significant Accounting Pronouncements: In February 2016, the Financial Accounting Standards Board (FASB) issued ASU 2016-02, “ Leases (Topic 842) .” Among other things, in the amendments in ASU 2016-02, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: (1) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (2) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. Certain targeted improvements were made to align, where necessary, lessor accounting with the lessee accounting model and Topic 606, Revenue from Contracts with Customers. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. The Corporation has completed an inventory of all buildings and equipment it leases from third parties. The Corporation has not yet determined an estimate of the effect that ASU 2016-02 will have on its financial statements. In June 2016, the FASB issued ASU 2016-13, “ Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” , as part of its project on financial instruments. ASU 2016-13 introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments. It also modifies the impairment model for available-for-sale debt securities and provides for a simplified accounting model for purchased financial assets with credit deterioration since their origination. For public business entities that are SEC filers, the new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption will be permitted for all organizations for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Corporation has established a working group that is in the process of gathering historical data and evaluating appropriate portfolio segmentation and modeling methods. The Corporation has not yet determined an estimate of the effect that ASU 2016-13 will have on its financial statements. In January 2017, the FASB issued ASU 2017-04, “ Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment ”, which removes the requirement to compare the implied fair value of goodwill with its carrying amount as part of step 2 of the goodwill impairment test. As a result, under ASU 2017-04, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. ASU 2017-04 is effective for public business entities that are SEC filers for annual and interim periods beginning after December 15, 2019. Early adoption is permitted. The Corporation does not expect the adoption of ASU 2017-04 to have a material effect on its financial statements. In March 2017, the FASB issued ASU 2017-08, “ Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20) ”, which requires all entities that hold investments in callable debt securities at a premium to amortize the premium to the earliest call date. ASU 2017-08 does not require an accounting change for securities held at a discount. ASU 2017-08 is effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted. The Corporation does not expect the adoption of ASU 2017-08 to have a material effect on its financial statements. In August 2017, the FASB issued ASU 2017-12, “ Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities .” The amendments in this ASU modify the designation and measurement guidance for hedge accounting as well as provide for increased transparency regarding the presentation of economic results on both the financial statements and related footnotes. Certain aspects of hedge effectiveness assessments will also be simplified upon implementation of this update. The amendments are effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2018. Early adoption is permitted, including adoption in any interim period. The Corporation does not expect the adoption of ASU 2017-12 to have a material effect on its financial statements. Other accounting standards that have been issued by the FASB or other standards-setting bodies are not expected to have a material effect on the Corporation’s financial position, results of operations or cash flows.

Summary of Significant Accoun21

Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2018
Summary of Significant Accounting Policies
Summary of activity for restricted stock awards	2018 Weighted- Average Grant Date Shares Fair Value Unvested, December 31, 2017 137,880 $ 43.52 Granted 11,210 58.40 Vested (14,125) 40.05 Forfeited (1,615) 42.78 Unvested, March 31, 2018 133,350 $ 45.14 2017 Weighted- Average Grant Date Shares Fair Value Unvested, December 31, 2016 141,755 $ 39.77 Granted 15,275 45.40 Vested (14,950) 34.73 Forfeited (910) 41.58 Unvested, March 31, 2017 141,170 $ 40.90

Securities (Tables)

Securities (Tables)	3 Months Ended
	Mar. 31, 2018
Securities
Summary of available for sale securities	March 31, 2018 Gross Gross Amortized Unrealized Unrealized (Dollars in thousands) Cost Gains Losses Fair Value U.S. government agencies and corporations $ 16,512 $ — $ (609) $ 15,903 Mortgage-backed securities 104,096 48 (2,295) 101,849 Obligations of states and political subdivisions 99,535 1,490 (369) 100,656 $ 220,143 $ 1,538 $ (3,273) $ 218,408 December 31, 2017 Gross Gross Amortized Unrealized Unrealized (Dollars in thousands) Cost Gains Losses Fair Value U.S. government agencies and corporations $ 16,514 $ — $ (341) $ 16,173 Mortgage-backed securities 97,677 142 (761) 97,058 Obligations of states and political subdivisions 103,977 2,022 (254) 105,745 $ 218,168 $ 2,164 $ (1,356) $ 218,976
Schedule of amortized cost and estimated fair value of securities, by contractual maturity date	March 31, 2018 December 31, 2017 Amortized Amortized (Dollars in thousands) Cost Fair Value Cost Fair Value Due in one year or less $ 41,742 $ 41,832 $ 40,247 $ 40,460 Due after one year through five years 158,872 156,904 159,444 159,571 Due after five years through ten years 15,624 15,649 15,254 15,452 Due after ten years 3,905 4,023 3,223 3,493 $ 220,143 $ 218,408 $ 218,168 $ 218,976
Schedule of gross realized gains and losses and the proceeds	Three Months Ended March 31, (Dollars in thousands) 2018 2017 Realized gains from sales of securities: Gross realized gains $ — $ — Gross realized losses — — Net realized gains $ — $ — Proceeds from sales of securities $ — $ — Realized gains from maturities and calls of securities: Gross realized gains $ 5 $ 1 Gross realized losses — — Net realized gains $ 5 $ 1 Proceeds from maturities, calls and paydowns of securities $ 12,735 $ 11,368
Schedule of securities in an unrealized loss position	Securities in an unrealized loss position at March 31, 2018, by duration of the period of the unrealized loss, are shown below. Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Loss Value Loss Value Loss U.S. government agencies and corporations $ 2,932 $ 68 $ 12,971 $ 541 $ 15,903 $ 609 Mortgage-backed securities 75,589 1,540 21,045 755 96,634 2,295 Obligations of states and political subdivisions 25,222 193 8,778 176 34,000 369 Total temporarily impaired securities $ 103,743 $ 1,801 $ 42,794 $ 1,472 $ 146,537 $ 3,273 Securities in an unrealized loss position at December 31, 2017, by duration of the period of the unrealized loss, are shown below. Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Loss Value Loss Value Loss U.S. government agencies and corporations $ 2,972 $ 31 $ 13,201 $ 310 $ 16,173 $ 341 Mortgage-backed securities 57,116 341 22,545 420 79,661 761 Obligations of states and political subdivisions 18,644 117 9,363 137 28,007 254 Total temporarily impaired securities $ 78,732 $ 489 $ 45,109 $ 867 $ 123,841 $ 1,356

Loans (Tables)

Loans (Tables)	3 Months Ended
	Mar. 31, 2018
Loans
Summary of major classifications of loans	March 31, December 31, (Dollars in thousands) 2018 2017 Real estate – residential mortgage $ 181,994 $ 184,863 Real estate – construction 1 61,691 44,782 Commercial, financial and agricultural 2 424,162 437,884 Equity lines 54,445 55,237 Consumer 13,487 13,018 Consumer finance 292,326 292,004 1,028,105 1,027,788 Less allowance for loan losses (35,600) (35,726) Loans, net $ 992,505 $ 992,062 1 Includes the Corporation's real estate construction lending and consumer real estate lot lending. 2 Includes the Corporation’s commercial real estate lending, land acquisition and development lending, builder line lending and commercial business lending.
Schedule of acquired loans	March 31, 2018 December 31, 2017 Acquired Loans - Acquired Loans - Acquired Loans - Acquired Loans - Purchased Purchased Acquired Loans - Purchased Purchased Acquired Loans - (Dollars in thousands) Credit Impaired Performing Total Credit Impaired Performing Total Outstanding principal balance $ 12,053 $ 43,808 $ 55,861 $ 12,856 $ 45,083 $ 57,939 Carrying amount Real estate – residential mortgage $ 490 $ 10,678 $ 11,168 $ 492 $ 10,855 $ 11,347 Commercial, financial and agricultural 1 2,253 21,630 23,883 2,472 22,305 24,777 Equity lines 140 9,293 9,433 139 9,621 9,760 Consumer — 10 10 — 12 12 Total acquired loans $ 2,883 $ 41,611 $ 44,494 $ 3,103 $ 42,793 $ 45,896 1 Includes acquired loans classified by the Corporation as commercial real estate lending, land acquisition and development lending, builder line lending and commercial business lending.
Schedule of loans on nonaccrual status	March 31, December 31, (Dollars in thousands) 2018 2017 Real estate – residential mortgage $ 798 $ 830 Commercial, financial and agricultural: Commercial real estate lending 2,060 3,796 Commercial business lending 29 34 Equity lines 839 651 Consumer — — Consumer finance 563 764 Total loans on nonaccrual status $ 4,289 $ 6,075
Schedule of past due status of loans	The past due status of loans as of March 31, 2018 was as follows: 90+ Days 30 - 59 Days 60 - 89 Days 90+ Days Total Past Due and (Dollars in thousands) Past Due Past Due Past Due Past Due PCI Current 1 Total Loans Accruing 2 Real estate – residential mortgage $ 218 $ 21 $ 39 $ 278 $ 490 $ 181,226 $ 181,994 $ 157 Real estate – construction: Construction lending — — — — — 53,916 53,916 — Consumer lot lending — — — — — 7,775 7,775 — Commercial, financial and agricultural: Commercial real estate lending 32 315 77 424 2,253 299,254 301,931 77 Land acquisition and development lending — — — — — 35,526 35,526 — Builder line lending — — — — — 29,573 29,573 — Commercial business lending 867 — — 867 — 56,265 57,132 — Equity lines 675 — 111 786 140 53,519 54,445 111 Consumer 14 — — 14 — 13,473 13,487 — Consumer finance 7,705 1,401 563 9,669 — 282,657 292,326 — Total $ 9,511 $ 1,737 $ 790 $ 12,038 $ 2,883 $ 1,013,184 $ 1,028,105 $ 345 1 For the purposes of the table above, “Current” includes loans that are 1-29 days past due. 2 Includes purchased credit impaired (PCI) loans of $157,000. The table above includes the following: · nonaccrual loans that are current of $2.99 million, 30-59 days past due of $694,000, 60-89 days past due of $2,000 and 90+ days past due of $602,000. · performing loans purchased in the acquisition of CVB that are current of $41.56 million, 30-59 days past due of $29,000 and 60-89 days past due of $20,000. The past due status of loans as of December 31, 2017 was as follows: 90+ Days 30 - 59 Days 60 - 89 Days 90+ Days Total Past Due and (Dollars in thousands) Past Due Past Due Past Due Past Due PCI Current 1 Total Loans Accruing 2 Real estate – residential mortgage $ 1,905 $ 14 $ 245 $ 2,164 $ 492 $ 182,207 $ 184,863 $ 90 Real estate – construction: Construction lending — — — — — 41,449 41,449 — Consumer lot lending — — — — — 3,333 3,333 — Commercial, financial and agricultural: Commercial real estate lending 241 — 3,874 4,115 2,472 297,903 304,490 78 Land acquisition and development lending — — — — — 39,844 39,844 — Builder line lending 685 — — 685 — 28,911 29,596 — Commercial business lending — — 2 2 — 63,952 63,954 2 Equity lines 550 — 136 686 139 54,412 55,237 136 Consumer 9 — — 9 — 13,009 13,018 — Consumer finance 12,273 2,061 764 15,098 — 276,906 292,004 — Total $ 15,663 $ 2,075 $ 5,021 $ 22,759 $ 3,103 $ 1,001,926 $ 1,027,788 $ 306 1 For the purposes of the table above, “Current” includes loans that are 1-29 days past due. 2 Includes PCI loans of $90,000. The table above includes the following: · nonaccrual loans that are current of $890,000, 30-59 days past due of $458,000, 60‑89 days past due of $14,000 and 90+ days past due of $4.70 million. · performing loans purchased in the acquisition of CVB that are current of $42.53 million, 30-59 days past due of $137,000, 60-89 days past due of $14,000 and 90+ days past due of $115,000.
Schedule of loan modifications classified as TDRs	Three Months Ended March 31, 2018 2017 Pre- Post- Pre- Post- Modification Modification Modification Modification Number of Recorded Recorded Number of Recorded Recorded (Dollars in thousands) Loans Investment Investment Loans Investment Investment Commercial, financial and agricultural: Commercial real estate lending – interest rate and term concession — $ — $ — 3 $ 4,646 $ 4,646 Commercial real estate lending – interest rate concession — — — 1 12 12 Total — $ — $ — 4 $ 4,658 $ 4,658
Impaired financing receivables, consisted solely of TDRs	Impaired loans, which consisted solely of TDRs, and the related allowance at March 31, 2018 were as follows: Recorded Recorded Investment Investment Average Unpaid in Loans in Loans Balance- Interest Principal without with Related Impaired Income (Dollars in thousands) Balance Specific Reserve Specific Reserve Allowance Loans Recognized Real estate – residential mortgage $ 3,724 $ 1,712 $ 1,908 $ 208 $ 3,683 $ 43 Commercial, financial and agricultural: Commercial real estate lending 5,243 2,751 2,219 667 5,943 39 Commercial business lending 37 31 — — 31 — Equity lines 32 31 — — 32 — Consumer 321 — 322 7 321 3 Total $ 9,357 $ 4,525 $ 4,449 $ 882 $ 10,010 $ 85 Impaired loans, which consisted solely of TDRs, and the related allowance at December 31, 2017 were as follows: Recorded Recorded Investment Investment Average Unpaid in Loans in Loans Balance- Interest Principal without with Related Impaired Income (Dollars in thousands) Balance Specific Reserve Specific Reserve Allowance Loans Recognized Real estate – residential mortgage $ 3,745 $ 1,603 $ 2,033 $ 214 $ 3,743 $ 184 Commercial, financial and agricultural: Commercial real estate lending 6,981 2,841 4,031 615 7,818 168 Commercial business lending 41 35 — — 45 — Equity lines 32 31 — — 32 2 Consumer 321 322 — — 321 13 Total $ 11,120 $ 4,832 $ 6,064 $ 829 $ 11,959 $ 367
Summary of change in the accretable yield of PCI loan portfolio	Three Months Ended March 31, (Dollars in thousands) 2018 2017 Accretable yield, balance at beginning of period $ 7,304 $ 8,637 Accretion (837) (683) Reclassification of nonaccretable difference due to improvement in expected cash flows 731 328 Other changes, net (398) (566) Accretable yield, balance at end of period $ 6,800 $ 7,716

Allowance for Loan Losses (Tabl

Allowance for Loan Losses (Tables)	3 Months Ended
	Mar. 31, 2018
Allowance for Loan Losses
Schedule of changes in the allowance for loan losses	The following table presents the changes in the allowance for loan losses by major classification during the three months ended March 31, 2018: Real Estate Commercial, Residential Real Estate Financial & Equity Consumer (Dollars in thousands) Mortgage Construction Agricultural Lines Consumer Finance Total Allowance for loan losses: Balance at December 31, 2017 $ 2,371 $ 605 $ 7,478 $ 688 $ 231 $ 24,353 $ 35,726 Provision charged (credited) to operations (16) 251 (238) — 3 3,300 3,300 Loans charged off — — (2) — (71) (4,583) (4,656) Recoveries of loans previously charged off 22 — 5 — 48 1,155 1,230 Balance at March 31, 2018 $ 2,377 $ 856 $ 7,243 $ 688 $ 211 $ 24,225 $ 35,600 The following table presents the changes in the allowance for loan losses by major classification during the three months ended March 31, 2017: Real Estate Commercial, Residential Real Estate Financial & Equity Consumer (Dollars in thousands) Mortgage Construction Agricultural Lines Consumer Finance Total Allowance for loan losses: Balance at December 31, 2016 $ 2,559 $ 816 $ 7,393 $ 685 $ 261 $ 25,352 $ 37,066 Provision charged (credited) to operations (33) (75) 259 27 (78) 4,300 4,400 Loans charged off (5) — (153) — (62) (5,678) (5,898) Recoveries of loans previously charged off 14 — 7 — 41 1,104 1,166 Balance at March 31, 2017 $ 2,535 $ 741 $ 7,506 $ 712 $ 162 $ 25,078 $ 36,734
Schedule of total allowance for loan losses, allowance by impairment methodology, and total loans and loans by impairment methodology	The following table presents, as of March 31, 2018, the total allowance for loan losses, the allowance by impairment methodology, total loans and loans by impairment methodology. Real Estate Commercial, Residential Real Estate Financial & Equity Consumer (Dollars in thousands) Mortgage Construction Agricultural Lines Consumer Finance Total Allowance for loan losses: Ending balance at March 31, 2018 $ 2,377 $ 856 $ 7,243 $ 688 $ 211 $ 24,225 $ 35,600 Ending balance: individually evaluated for impairment $ 208 $ — $ 667 $ — $ 7 $ — $ 882 Ending balance: collectively evaluated for impairment $ 2,169 $ 856 $ 6,576 $ 688 $ 204 $ 24,225 $ 34,718 Ending balance: acquired loans - PCI $ — $ — $ — $ — $ — $ — $ — Loans: Ending balance at March 31, 2018 $ 181,994 $ 61,691 $ 424,162 $ 54,445 $ 13,487 $ 292,326 $ 1,028,105 Ending balance: individually evaluated for impairment $ 3,620 $ — $ 5,001 $ 31 $ 322 $ — $ 8,974 Ending balance: collectively evaluated for impairment $ 177,884 $ 61,691 $ 416,908 $ 54,274 $ 13,165 $ 292,326 $ 1,016,248 Ending balance: acquired loans - PCI $ 490 $ — $ 2,253 $ 140 $ — $ — $ 2,883 The following table presents, as of December 31, 2017, the total allowance for loan losses, the allowance by impairment methodology, total loans and loans by impairment methodology. Real Estate Commercial, Residential Real Estate Financial & Equity Consumer (Dollars in thousands) Mortgage Construction Agricultural Lines Consumer Finance Total Allowance for loan losses: Ending balance at December 31, 2017 $ 2,371 $ 605 $ 7,478 $ 688 $ 231 $ 24,353 $ 35,726 Ending balance: individually evaluated for impairment $ 214 $ — $ 615 $ — $ — $ — $ 829 Ending balance: collectively evaluated for impairment $ 2,157 $ 605 $ 6,863 $ 688 $ 231 $ 24,353 $ 34,897 Ending balance: acquired loans - PCI $ — $ — $ — $ — $ — $ — $ — Loans: Ending balance at December 31, 2017 $ 184,863 $ 44,782 $ 437,884 $ 55,237 $ 13,018 $ 292,004 $ 1,027,788 Ending balance: individually evaluated for impairment $ 3,636 $ — $ 6,907 $ 31 $ 322 $ — $ 10,896 Ending balance: collectively evaluated for impairment $ 180,735 $ 44,782 $ 428,505 $ 55,067 $ 12,696 $ 292,004 $ 1,013,789 Ending balance: acquired loans - PCI $ 492 $ — $ 2,472 $ 139 $ — $ — $ 3,103
Schedule of loans by credit quality indicators	Loans by credit quality indicators as of March 31, 2018 were as follows: Special Substandard (Dollars in thousands) Pass Mention Substandard Nonaccrual Total 1 Real estate – residential mortgage $ 178,151 $ 525 $ 2,520 $ 798 $ 181,994 Real estate – construction: Construction lending 53,916 — — — 53,916 Consumer lot lending 7,195 580 — — 7,775 Commercial, financial and agricultural: Commercial real estate lending 293,273 2,541 4,057 2,060 301,931 Land acquisition and development lending 21,362 769 13,395 — 35,526 Builder line lending 29,573 — — — 29,573 Commercial business lending 56,874 16 213 29 57,132 Equity lines 52,937 462 207 839 54,445 Consumer 13,163 2 322 — 13,487 $ 706,444 $ 4,895 $ 20,714 $ 3,726 $ 735,779 1 At March 31, 2018, the Corporation did not have any loans classified as Doubtful or Loss. Included in the table above are loans purchased in connection with the acquisition of CVB of $41.52 million pass rated, $952,000 special mention, $1.88 million substandard and $146,000 substandard nonaccrual. Non- (Dollars in thousands) Performing Performing Total Consumer finance $ 291,763 $ 563 $ 292,326 Loans by credit quality indicators as of December 31, 2017 were as follows: Special Substandard (Dollars in thousands) Pass Mention Substandard Nonaccrual Total 1 Real estate – residential mortgage $ 179,963 $ 1,235 $ 2,835 $ 830 $ 184,863 Real estate – construction: Construction lending 41,449 — — — 41,449 Consumer lot lending 3,333 — — — 3,333 Commercial, financial and agricultural: Commercial real estate lending 293,292 2,874 4,528 3,796 304,490 Land acquisition and development lending 24,253 — 15,591 — 39,844 Builder line lending 29,596 — — — 29,596 Commercial business lending 63,749 34 137 34 63,954 Equity lines 53,870 465 251 651 55,237 Consumer 12,693 3 322 — 13,018 $ 702,198 $ 4,611 $ 23,664 $ 5,311 $ 735,784 1 At December 31, 2017, the Corporation did not have any loans classified as Doubtful or Loss. Included in the table above are loans purchased in connection with the acquisition of CVB of $42.67 million pass rated, $1.09 million special mention, $1.98 million substandard and $161,000 substandard nonaccrual. Non- (Dollars in thousands) Performing Performing Total Consumer finance $ 291,240 $ 764 $ 292,004

Shareholders_ Equity, Other C25

Shareholders’ Equity, Other Comprehensive Income and Earnings Per Share (Tables)	3 Months Ended
	Mar. 31, 2018
Shareholders’ Equity, Other Comprehensive Income and Earnings Per Share
Schedule of the components of accumulated other comprehensive income (loss), net of deferred taxes	March 31, December 31, (Dollars in thousands) 2018 2017 Net unrealized (losses) gains on securities $ (1,371) $ 638 Net unrecognized gains on cash flow hedges 281 124 Net unrecognized losses on defined benefit plan (2,638) (2,649) Total accumulated other comprehensive loss $ (3,728) $ (1,887)
Schedule of components earnings per share calculations	Three Months Ended March 31, (Dollars in thousands) 2018 2017 Net income $ 3,892 $ 2,731 Weighted average number of shares used in earnings per share—basic 3,501,164 3,483,007 Effect of dilutive securities: Stock option awards — 316 Weighted average number of shares used in earnings per share—assuming dilution 3,501,164 3,483,323

Employee Benefit Plans (Tables)

Employee Benefit Plans (Tables)	3 Months Ended
	Mar. 31, 2018
Employee Benefit Plans
Schedule of net periodic benefit costs	Three Months Ended March 31, (Dollars in thousands) 2018 2017 Components of net periodic benefit cost: Service cost, included in salaries and employee benefits $ 306 $ 282 Other components of net periodic pension cost: Interest cost 133 138 Expected return on plan assets (318) (287) Amortization of prior service cost (15) (15) Recognized net actuarial loss 29 38 Other components of net periodic pension cost, included in other noninterest income (171) (126) Net periodic benefit cost $ 135 $ 156

Fair Value of Assets and Liab27

Fair Value of Assets and Liabilities (Tables)	3 Months Ended
	Mar. 31, 2018
Fair Value of Assets and Liabilities
Schedule of financial assets measured at fair value on a recurring basis	March 31, 2018 Fair Value Measurements Using Assets/Liabilities at (Dollars in thousands) Level 1 Level 2 Level 3 Fair Value Assets: Securities available for sale U.S. government agencies and corporations $ — $ 15,903 $ — $ 15,903 Mortgage-backed securities — 101,849 — 101,849 Obligations of states and political subdivisions — 100,656 — 100,656 Total securities available for sale — 218,408 — 218,408 Loans held for sale — 39,654 — 39,654 Derivative asset - IRLC — 1,264 — 1,264 Derivative asset - interest rate swaps on loans — 1,897 — 1,897 Derivative asset - cash flow hedges — 378 — 378 Total assets $ — $ 261,601 $ — $ 261,601 Liabilities: Derivative liability - interest rate swaps on loans $ — $ 1,897 $ — $ 1,897 Total liabilities $ — $ 1,897 $ — $ 1,897 December 31, 2017 Fair Value Measurements Using Assets/Liabilities at (Dollars in thousands) Level 1 Level 2 Level 3 Fair Value Assets: Securities available for sale U.S. government agencies and corporations $ — $ 16,173 $ — $ 16,173 Mortgage-backed securities — 97,058 — 97,058 Obligations of states and political subdivisions — 105,745 — 105,745 Total securities available for sale — 218,976 — 218,976 Loans held for sale — 55,384 — 55,384 Derivative asset - IRLC — 528 — 528 Derivative asset - interest rate swaps on loans — 1,261 — 1,261 Derivative asset - cash flow hedges — 166 — 166 Total assets $ — $ 276,315 $ — $ 276,315 Liabilities: Derivative liability - interest rate swaps on loans $ — $ 1,261 $ — $ 1,261 Total liabilities $ — $ 1,261 $ — $ 1,261
Schedule of financial assets measured at fair value on a nonrecurring basis	March 31, 2018 Fair Value Measurements Using Assets at Fair (Dollars in thousands) Level 1 Level 2 Level 3 Value Impaired loans, net $ — $ — $ 1,576 $ 1,576 Other real estate owned, net — — 168 168 Total $ — $ — $ 1,744 $ 1,744 December 31, 2017 Fair Value Measurements Using Assets at Fair (Dollars in thousands) Level 1 Level 2 Level 3 Value Impaired loans, net $ — $ — $ 3,438 $ 3,438 Other real estate owned, net — — 168 168 Total $ — $ — $ 3,606 $ 3,606
Schedule of quantitative information about Level 3 fair value measurements for financial assets measured at fair value on a non-recurring basis	Fair Value Measurements at March 31, 2018 (Dollars in thousands) Fair Value Valuation Technique(s) Unobservable Inputs Range of Inputs Impaired loans, net $ 1,576 Appraisals Discount to reflect current market conditions and estimated selling costs 18% - 30% Other real estate owned, net 168 Appraisals Discount to reflect current market conditions and estimated selling costs 28% Total $ 1,744
Schedule of carrying amounts and estimated fair values of financial instruments	Carrying Fair Value Measurements at March 31, 2018 Using Total Fair (Dollars in thousands) Value Level 1 Level 2 Level 3 Value Financial assets: Cash and short-term investments $ 148,048 $ 148,048 $ — $ — $ 148,048 Securities available for sale 218,408 — 218,408 — 218,408 Loans, net 992,505 — — 973,502 973,502 Loans held for sale 39,654 — 39,654 — 39,654 Derivative asset - IRLC 1,264 — 1,264 — 1,264 Derivative asset - interest rate swaps on loans 1,897 — 1,897 — 1,897 Derivative asset - cash flow hedges 378 — 378 — 378 Bank-owned life insurance 15,684 — 15,684 — 15,684 Accrued interest receivable 7,189 7,189 — — 7,189 Financial liabilities: Demand deposits $ 831,736 $ 831,736 $ — $ — $ 831,736 Time deposits 354,357 — 353,845 — 353,845 Borrowings 166,989 — 159,437 — 159,437 Derivative liability - interest rate swaps on loans 1,897 — 1,897 — 1,897 Accrued interest payable 845 845 — — 845 Carrying Fair Value Measurements at December 31, 2017 Using Total Fair (Dollars in thousands) Value Level 1 Level 2 Level 3 Value Financial assets: Cash and short-term investments $ 119,423 $ 119,423 $ — $ — $ 119,423 Securities available for sale 218,976 — 218,976 — 218,976 Loans, net 992,062 — — 983,620 983,620 Loans held for sale 55,384 — 55,384 — 55,384 Derivative asset - IRLC 528 — 528 — 528 Derivative asset - interest rate swaps on loans 1,261 — 1,261 — 1,261 Derivative asset - cash flow hedges 166 — 166 — 166 Bank-owned life insurance 15,589 — 15,589 — 15,589 Accrued interest receivable 7,589 7,589 — — 7,589 Financial liabilities: Demand deposits $ 823,476 $ 823,476 $ — $ — $ 823,476 Time deposits 347,953 — 350,681 — 350,681 Borrowings 167,860 — 159,670 — 159,670 Derivative liability - interest rate swaps on loans 1,261 — 1,261 — 1,261 Accrued interest payable 838 838 — — 838

Business Segments (Tables)

Business Segments (Tables)	3 Months Ended
	Mar. 31, 2018
Business Segments
Schedule of segment reporting information, by segment	Three Months Ended March 31, 2018 Retail Mortgage Consumer (Dollars in thousands) Banking Banking Finance Other Eliminations Consolidated Revenues: Interest income $ 13,160 $ 367 $ 10,849 $ — $ (1,632) $ 22,744 Gains on sales of loans — 2,239 — — — 2,239 Other noninterest income 2,619 857 248 483 — 4,207 Total operating income 15,779 3,463 11,097 483 (1,632) 29,190 Expenses: Provision for loan losses — — 3,300 — — 3,300 Interest expense 1,617 143 2,165 283 (1,632) 2,576 Salaries and employee benefits 6,486 1,443 2,265 539 — 10,733 Other noninterest expenses 4,981 1,275 1,307 243 — 7,806 Total operating expenses 13,084 2,861 9,037 1,065 (1,632) 24,415 Income (loss) before income taxes 2,695 602 2,060 (582) — 4,775 Income tax expense (benefit) 383 167 562 (229) — 883 Net income (loss) $ 2,312 $ 435 $ 1,498 $ (353) $ — $ 3,892 Total assets $ $ 54,516 $ 292,417 $ 5,066 $ (184,009) $ 1,524,926 Goodwill $ 3,702 $ — $ 10,723 $ — $ — $ 14,425 Capital expenditures $ 572 $ 21 $ 28 $ — $ — $ 621 Three Months Ended March 31, 2017 Retail Mortgage Consumer (Dollars in thousands) Banking Banking Finance Other Eliminations Consolidated Revenues: Interest income $ 11,972 $ 316 $ 11,206 $ — $ (1,473) $ 22,021 Gains on sales of loans — 1,943 — — — 1,943 Other noninterest income 2,624 1,087 232 384 — 4,327 Total operating income 14,596 3,346 11,438 384 (1,473) 28,291 Expenses: Provision for loan losses 100 — 4,300 — — 4,400 Interest expense 1,465 88 1,907 283 (1,473) 2,270 Salaries and employee benefits 6,359 1,483 2,412 539 — 10,793 Other noninterest expenses 4,443 1,279 1,253 201 — 7,176 Total operating expenses 12,367 2,850 9,872 1,023 (1,473) 24,639 Income (loss) before income taxes 2,229 496 1,566 (639) — 3,652 Income tax expense (benefit) 407 199 624 (309) — 921 Net income (loss) $ 1,822 $ 297 $ 942 $ (330) $ — $ 2,731 Total assets $ 1,305,717 $ 56,178 $ 301,506 $ 5,873 $ (204,810) $ 1,464,464 Goodwill $ 3,702 $ — $ 10,723 $ — $ — $ 14,425 Capital expenditures $ 379 $ 194 $ 13 $ 11 $ — $ 597

Commitments and Financial Ins29

Commitments and Financial Instruments with Off-Balance-Sheet Risk (Tables)	3 Months Ended
	Mar. 31, 2018
Commitments and Financial Instruments with Off-Balance-Sheet Risk
Schedule of allowance for indemnifications losses	Three Months Ended March 31, (Dollars in thousands) 2018 2017 Allowance, beginning of period $ 2,489 $ 2,303 Provision for indemnification losses 36 36 Payments — — Allowance, end of period $ 2,525 $ 2,339

Derivative Financial Instrume30

Derivative Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2018
Derivative Financial Instruments
Schedule of derivative instruments	March 31, 2018 Notional Collateral (Dollars in thousands) Amount 1 Positions Assets 2 Liabilities 2 Pledged 3 Cash flow hedges: Interest rate swaps: Variable-rate to fixed-rate swaps with counterparty $ 25,000 3 $ 378 $ — $ — Not designated as hedges: Customer-related interest rate contracts: Matched interest rate swaps with borrower 45,046 7 216 1,681 — Matched interest rate swaps with counterparty 45,046 7 1,681 216 — Other contracts: Interest rate lock commitments 130,452 529 1,264 — — 1 Notional amounts are not recorded on the balance sheet and are generally used only as a basis on which interest and other payments are determined. 2 Balances represent the fair value of derivative financial instruments. 3 Collateral pledged may be comprised of cash or securities. December 31, 2017 Notional Collateral (Dollars in thousands) Amount 1 Positions Assets 2 Liabilities 2 Pledged 3 Cash flow hedges: Interest rate swaps: Variable-rate to fixed-rate swaps with counterparty $ 25,000 3 $ 166 $ — $ — Not designated as hedges: Customer-related interest rate contracts: Matched interest rate swaps with borrower 41,295 6 284 977 — Matched interest rate swaps with counterparty 41,295 6 977 284 — Other contracts: Interest rate lock commitments 99,140 440 528 — — 1 Notional amounts are not recorded on the balance sheet and are generally used only as a basis on which interest and other payments are determined. 2 Balances represent the fair value of derivative financial instruments. 3 Collateral pledged may be comprised of cash or securities.

Other Noninterest Expenses (Tab

Other Noninterest Expenses (Tables)	3 Months Ended
	Mar. 31, 2018
Other Noninterest Expenses
Schedule of other noninterest expense	Three Months Ended March 31, (Dollars in thousands) 2018 2017 Data processing service and maintenance contracts $ 776 $ 649 Professional fees 739 706 Data processing fees 717 609 Marketing and advertising expenses 460 365 Travel and educational expenses 371 286 Telecommunication expenses 346 330 Interchange expense 334 249 All other noninterest expenses 2,032 2,011 Total other noninterest expenses $ 5,775 $ 5,205

Summary of Significant Accoun32

Summary of Significant Accounting Policies - Nature of Operations (Details)	3 Months Ended
	Mar. 31, 2018subsidiary
C&F Bank
Nature of Operations
Number of wholly owned subsidiaries	5
CVB Title Services, Inc.
Nature of Operations
Number of insurance-related limited liability companies in which an ownership interest is held	2

Summary of Significant Accoun33

Summary of Significant Accounting Policies - Share-Based Compensation (Details) - Restricted Stock	3 Months Ended
	Mar. 31, 2018USD ($)
Share-based compensation
Compensation expense before tax	$ 319,000
Compensation expense after tax	237,000
Unrecognized compensation expense	$ 3,280,000

Summary of Significant Accoun34

Summary of Significant Accounting Policies - Restricted Stock Activity (Details) - $ / shares	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Shares
Unvested, beginning of period (in shares)	137,880
Unvested, end of period (in shares)	133,350
Restricted Stock
Shares
Unvested, beginning of period (in shares)	137,880	141,755
Granted (in shares)	11,210	15,275
Vested (in shares)	(14,125)	(14,950)
Forfeited	(1,615)	(910)
Unvested, end of period (in shares)	133,350	141,170
Weighted average grant date fair value
Unvested, beginning of period (in dollars per share)	$ 43.52	$ 39.77
Granted (in dollars per share)	58.40	45.40
Vested (in dollars per share)	40.05	34.73
Forfeited (in dollars per share)	42.78	41.58
Unvested, end of period (in dollars per share)	$ 45.14	$ 40.90

Summary of Significant Accoun35

Summary of Significant Accounting Policies - Recently Adopted Accounting Pronouncements (Details) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Adoption of New Accounting Standards
Cumulative effect adjustment recorded	$ 130,133,000		$ 127,431,000
Salaries and employee benefits	(10,733,000)	$ (10,793,000)
Noninterest income – Other	(762,000)	(889,000)
ASU 2014-09 | Difference between Revenue guidance in effect before and after Topic 606
Adoption of New Accounting Standards
Cumulative effect adjustment recorded	$ 0
ASU 2017-07 | Adjustment
Adoption of New Accounting Standards
Salaries and employee benefits		126,000
Noninterest income – Other		$ 126,000

Securities - Available for sale

Securities - Available for sale Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 220,143	$ 218,168
Gross Unrealized Gains	1,538	2,164
Gross Unrealized Losses	(3,273)	(1,356)
Fair Value	218,408	218,976
U.S. government agencies and corporations
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	16,512	16,514
Gross Unrealized Losses	(609)	(341)
Fair Value	15,903	16,173
Mortgage-backed securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	104,096	97,677
Gross Unrealized Gains	48	142
Gross Unrealized Losses	(2,295)	(761)
Fair Value	101,849	97,058
Obligations of states and political subdivisions
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	99,535	103,977
Gross Unrealized Gains	1,490	2,022
Gross Unrealized Losses	(369)	(254)
Fair Value	$ 100,656	$ 105,745

Securities - Contractual Maturi

Securities - Contractual Maturities (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Amortized Cost
Due in one year or less	$ 41,742		$ 40,247
Due after one year through five years	158,872		159,444
Due after five years through ten years	15,624		15,254
Due after ten years	3,905		3,223
Amortized Cost	220,143		218,168
Estimated Fair Value
Due in one year or less	41,832		40,460
Due after one year through five years	156,904		159,571
Due after five years through ten years	15,649		15,452
Due after ten years	4,023		3,493
Fair Value	218,408		$ 218,976
Proceeds from sales and maturities and related gains and losses
Gross realized gains from maturities and calls of securities available for sale	5	$ 1
Net realized losses from maturities and calls of securities available for sale	5	1
Proceeds from maturities and calls of securities available for sale	$ 12,735	$ 11,368

Securities - Pledged as Collate

Securities - Pledged as Collateral (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Available for sale securities
Amortized Cost	$ 220,143	$ 218,168
Fair Value	218,408	218,976
Securities Pledged as Collateral
Available for sale securities
Amortized Cost	110,460	118,700
Fair Value	$ 109,770	$ 119,260

Securities - Unrealized Loss Po

Securities - Unrealized Loss Positions (Details)	3 Months Ended
	Mar. 31, 2018USD ($)security	Dec. 31, 2017USD ($)
Fair value
Less Than 12 Months, Fair Value	$ 103,743,000	$ 78,732,000
12 Months or More, Fair Value	42,794,000	45,109,000
Total Fair Value	146,537,000	123,841,000
Unrealized Loss
Less Than 12 Months, Unrealized Loss	1,801,000	489,000
12 Months or More, Unrealized Loss	1,472,000	867,000
Total Unrealized Loss	$ 3,273,000	1,356,000
Other information
Number of positions considered temporarily impaired | security	244
Debt securities considered temporarily impaired	$ 146,537,000	123,841,000
Other than temporary impairment	0
U.S. government agencies and corporations
Fair value
Less Than 12 Months, Fair Value	2,932,000	2,972,000
12 Months or More, Fair Value	12,971,000	13,201,000
Total Fair Value	15,903,000	16,173,000
Unrealized Loss
Less Than 12 Months, Unrealized Loss	68,000	31,000
12 Months or More, Unrealized Loss	541,000	310,000
Total Unrealized Loss	609,000	341,000
Other information
Debt securities considered temporarily impaired	15,903,000	16,173,000
Mortgage-backed securities
Fair value
Less Than 12 Months, Fair Value	75,589,000	57,116,000
12 Months or More, Fair Value	21,045,000	22,545,000
Total Fair Value	96,634,000	79,661,000
Unrealized Loss
Less Than 12 Months, Unrealized Loss	1,540,000	341,000
12 Months or More, Unrealized Loss	755,000	420,000
Total Unrealized Loss	2,295,000	761,000
Other information
Debt securities considered temporarily impaired	96,634,000	79,661,000
Obligations of states and political subdivisions
Fair value
Less Than 12 Months, Fair Value	25,222,000	18,644,000
12 Months or More, Fair Value	8,778,000	9,363,000
Total Fair Value	34,000,000	28,007,000
Unrealized Loss
Less Than 12 Months, Unrealized Loss	193,000	117,000
12 Months or More, Unrealized Loss	176,000	137,000
Total Unrealized Loss	369,000	254,000
Other information
Debt securities considered temporarily impaired	$ 34,000,000	$ 28,007,000
Standard & Poor's, A Rating
Other information
Percentage of portfolio with rating	97.00%
Percentage of portfolio with rating in an unrealized loss positions	98.00%
Not A Rating Or Better
Other information
Percentage of portfolio with rating	2.00%

Securities - Restricted Stocks

Securities - Restricted Stocks (Details) - USD ($)	3 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Securities
Restricted stocks, at cost	$ 3,498,000	$ 3,443,000
Restricted stocks, other-than-temporary impairment	$ 0

Loans - Major Classifications o

Loans - Major Classifications of Loans (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Loans
Loans	$ 1,028,105	$ 1,027,788
Less allowance for loan losses	(35,600)	(35,726)
Loans, net	992,505	992,062
Real estate - residential mortgage
Loans
Loans	181,994	184,863
Real estate - construction
Loans
Loans	61,691	44,782
Commercial, financial and agricultural
Loans
Loans	424,162	437,884
Equity lines
Loans
Loans	54,445	55,237
Consumer Loan
Loans
Loans	13,487	13,018
Amount included related to demand deposit overdrafts	210	290
Consumer Finance
Loans
Loans	$ 292,326	$ 292,004

Loans - Loans Acquired (Details

Loans - Loans Acquired (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
PCI Loans
Carrying amount
Acquired Loans	$ 2,880
CVBK
Loans
Outstanding principal balance	55,861	$ 57,939
Carrying amount
Acquired Loans	44,494	45,896
CVBK | Real estate - residential mortgage
Carrying amount
Acquired Loans	11,168	11,347
CVBK | Commercial, financial and agricultural
Carrying amount
Acquired Loans	23,883	24,777
CVBK | Equity lines
Carrying amount
Acquired Loans	9,433	9,760
CVBK | Consumer Loan
Carrying amount
Acquired Loans	10	12
CVBK | PCI Loans
Loans
Outstanding principal balance	12,053	12,856
Carrying amount
Acquired Loans	2,883	3,103
CVBK | PCI Loans | Real estate - residential mortgage
Carrying amount
Acquired Loans	490	492
CVBK | PCI Loans | Commercial, financial and agricultural
Carrying amount
Acquired Loans	2,253	2,472
CVBK | PCI Loans | Equity lines
Carrying amount
Acquired Loans	140	139
CVBK | Purchased Performing Loans
Loans
Outstanding principal balance	43,808	45,083
Carrying amount
Acquired Loans	41,611	42,793
CVBK | Purchased Performing Loans | Real estate - residential mortgage
Carrying amount
Acquired Loans	10,678	10,855
CVBK | Purchased Performing Loans | Commercial, financial and agricultural
Carrying amount
Acquired Loans	21,630	22,305
CVBK | Purchased Performing Loans | Equity lines
Carrying amount
Acquired Loans	9,293	9,621
CVBK | Purchased Performing Loans | Consumer Loan
Carrying amount
Acquired Loans	$ 10	$ 12

Loans - Loans on Nonaccrual Sta

Loans - Loans on Nonaccrual Status (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Loans on nonaccrual status
Loans on nonaccrual status	$ 4,289	$ 6,075
Real estate - residential mortgage
Loans on nonaccrual status
Loans on nonaccrual status	798	830
Commercial, financial and agricultural | Commercial real estate lending
Loans on nonaccrual status
Loans on nonaccrual status	2,060	3,796
Commercial, financial and agricultural | Commercial business lending
Loans on nonaccrual status
Loans on nonaccrual status	29	34
Equity lines
Loans on nonaccrual status
Loans on nonaccrual status	839	651
Consumer Finance
Loans on nonaccrual status
Loans on nonaccrual status	$ 563	$ 764

Loans - Past Due Status (Detail

Loans - Past Due Status (Details) - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Loans on nonaccrual status
Total Past Due	$ 12,038,000	$ 22,759,000
Current	1,013,184,000	1,001,926,000
Total Loans	1,028,105,000	1,027,788,000
90+ days past due and accruing	345,000	306,000
Additional disclosure for nonaccrual loans
Current, nonaccrual status	2,990,000	890,000
Nonaccrual loans, 30-59 days past due	694,000	458,000
Nonaccrual loans, 60-89 days past due	2,000	14,000
Nonaccrual loans, 90+ days past due	602,000	4,700,000
PCI
Loans on nonaccrual status
PCI	2,883,000	3,103,000
30-59 Days Past Due
Loans on nonaccrual status
Total Past Due	9,511,000	15,663,000
60-89 Days Past Due
Loans on nonaccrual status
Total Past Due	1,737,000	2,075,000
90+ Days Past Due
Loans on nonaccrual status
Total Past Due	790,000	5,021,000
Real estate - residential mortgage
Loans on nonaccrual status
Total Past Due	278,000	2,164,000
Current	181,226,000	182,207,000
Total Loans	181,994,000	184,863,000
90+ days past due and accruing	157,000	90,000
Real estate - residential mortgage | PCI
Loans on nonaccrual status
PCI	490,000	492,000
Real estate - residential mortgage | 30-59 Days Past Due
Loans on nonaccrual status
Total Past Due	218,000	1,905,000
Real estate - residential mortgage | 60-89 Days Past Due
Loans on nonaccrual status
Total Past Due	21,000	14,000
Real estate - residential mortgage | 90+ Days Past Due
Loans on nonaccrual status
Total Past Due	39,000	245,000
Equity lines
Loans on nonaccrual status
Total Past Due	786,000	686,000
Current	53,519,000	54,412,000
Total Loans	54,445,000	55,237,000
90+ days past due and accruing	111,000	136,000
Equity lines | PCI
Loans on nonaccrual status
PCI	140,000	139,000
Equity lines | 30-59 Days Past Due
Loans on nonaccrual status
Total Past Due	675,000	550,000
Equity lines | 90+ Days Past Due
Loans on nonaccrual status
Total Past Due	111,000	136,000
Consumer Loan
Loans on nonaccrual status
Total Past Due	14,000	9,000
Current	13,473,000	13,009,000
Total Loans	13,487,000	13,018,000
Consumer Loan | 30-59 Days Past Due
Loans on nonaccrual status
Total Past Due	14,000	9,000
Consumer Finance
Loans on nonaccrual status
Total Past Due	9,669,000	15,098,000
Current	282,657,000	276,906,000
Total Loans	292,326,000	292,004,000
Consumer Finance | 30-59 Days Past Due
Loans on nonaccrual status
Total Past Due	7,705,000	12,273,000
Consumer Finance | 60-89 Days Past Due
Loans on nonaccrual status
Total Past Due	1,401,000	2,061,000
Consumer Finance | 90+ Days Past Due
Loans on nonaccrual status
Total Past Due	563,000	764,000
Construction Lending | Real estate - construction
Loans on nonaccrual status
Current	53,916,000	41,449,000
Total Loans	53,916,000	41,449,000
Consumer lot lending | Real estate - construction
Loans on nonaccrual status
Current	7,775,000	3,333,000
Total Loans	7,775,000	3,333,000
Commercial real estate lending | Commercial, financial and agricultural
Loans on nonaccrual status
Total Past Due	424,000	4,115,000
Current	299,254,000	297,903,000
Total Loans	301,931,000	304,490,000
90+ days past due and accruing	77,000	78,000
Commercial real estate lending | Commercial, financial and agricultural | PCI
Loans on nonaccrual status
PCI	2,253,000	2,472,000
Commercial real estate lending | Commercial, financial and agricultural | 30-59 Days Past Due
Loans on nonaccrual status
Total Past Due	32,000	241,000
Commercial real estate lending | Commercial, financial and agricultural | 60-89 Days Past Due
Loans on nonaccrual status
Total Past Due	315,000
Commercial real estate lending | Commercial, financial and agricultural | 90+ Days Past Due
Loans on nonaccrual status
Total Past Due	77,000	3,874,000
Land acquisition and development lending | Commercial, financial and agricultural
Loans on nonaccrual status
Current	35,526,000	39,844,000
Total Loans	35,526,000	39,844,000
Builder line lending | Commercial, financial and agricultural
Loans on nonaccrual status
Total Past Due		685,000
Current	29,573,000	28,911,000
Total Loans	29,573,000	29,596,000
Builder line lending | Commercial, financial and agricultural | 30-59 Days Past Due
Loans on nonaccrual status
Total Past Due		685,000
Commercial business lending | Commercial, financial and agricultural
Loans on nonaccrual status
Total Past Due	867,000	2,000
Current	56,265,000	63,952,000
Total Loans	57,132,000	63,954,000
90+ days past due and accruing		2,000
Commercial business lending | Commercial, financial and agricultural | 30-59 Days Past Due
Loans on nonaccrual status
Total Past Due	867,000
Commercial business lending | Commercial, financial and agricultural | 90+ Days Past Due
Loans on nonaccrual status
Total Past Due		2,000
CVBK | 1-29 Days Past Due
Loans on nonaccrual status
Total Past Due	41,560,000	42,530,000
CVBK | 30-59 Days Past Due
Loans on nonaccrual status
Total Past Due	29,000	137,000
CVBK | 60-89 Days Past Due
Loans on nonaccrual status
Total Past Due	20,000	14,000
CVBK | 90+ Days Past Due
Loans on nonaccrual status
Total Past Due		115,000
PCI Loans
Loans on nonaccrual status
90+ days past due and accruing	$ 157,000	$ 90,000

Loans - Troubled Debt Restructu

Loans - Troubled Debt Restructurings (Details)	3 Months Ended
	Mar. 31, 2018USD ($)	Mar. 31, 2017USD ($)loan
Loan modifications classified as troubled debt restructurings
Number of Loans | loan		4
Pre-Modification Recorded Investment (in Dollars)		$ 4,658,000
Post-Modification Recorded Investment (in Dollars)		4,658,000
Recorded Investment, TDR payment defaults	$ 0	$ 0
TDR payment default period	12 months
Period determining when a past due TDR becomes a subsequent default	90 days
Commercial, financial and agricultural | Commercial real estate lending | Interest rate concession
Loan modifications classified as troubled debt restructurings
Number of Loans | loan		1
Pre-Modification Recorded Investment (in Dollars)		$ 12,000
Post-Modification Recorded Investment (in Dollars)		$ 12,000
Commercial, financial and agricultural | Commercial real estate lending | Interest rate and term concession
Loan modifications classified as troubled debt restructurings
Number of Loans | loan		3
Pre-Modification Recorded Investment (in Dollars)		$ 4,646,000
Post-Modification Recorded Investment (in Dollars)		$ 4,646,000

Loans - Impaired Loans (Details

Loans - Impaired Loans (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Impaired loans
Impaired loans, Unpaid Principal Balance	$ 9,357	$ 11,120
Impaired loans, Recorded Investment in Loans without Specific Reserve	4,525	4,832
Impaired loans, Recorded Investment in Loans with Specific Reserve	4,449	6,064,000
Impaired loans, Related Allowance	882	829
Impaired loans, Average Balance	10,010	11,959
Impaired loans, Interest Income Recognized	85	367
Real estate - residential mortgage
Impaired loans
Impaired loans, Unpaid Principal Balance	3,724	3,745
Impaired loans, Recorded Investment in Loans without Specific Reserve	1,712	1,603
Impaired loans, Recorded Investment in Loans with Specific Reserve	1,908	2,033,000
Impaired loans, Related Allowance	208	214
Impaired loans, Average Balance	3,683	3,743
Impaired loans, Interest Income Recognized	43	184
Commercial, financial and agricultural | Commercial real estate lending
Impaired loans
Impaired loans, Unpaid Principal Balance	5,243	6,981
Impaired loans, Recorded Investment in Loans without Specific Reserve	2,751	2,841
Impaired loans, Recorded Investment in Loans with Specific Reserve	2,219	4,031,000
Impaired loans, Related Allowance	667	615
Impaired loans, Average Balance	5,943	7,818
Impaired loans, Interest Income Recognized	39	168
Commercial, financial and agricultural | Commercial business lending
Impaired loans
Impaired loans, Unpaid Principal Balance	37	41
Impaired loans, Recorded Investment in Loans without Specific Reserve	31	35
Impaired loans, Average Balance	31	45
Equity lines
Impaired loans
Impaired loans, Unpaid Principal Balance	32	32
Impaired loans, Recorded Investment in Loans without Specific Reserve	31	31
Impaired loans, Average Balance	32	32
Impaired loans, Interest Income Recognized		2
Consumer Loan
Impaired loans
Impaired loans, Unpaid Principal Balance	321	321
Impaired loans, Recorded Investment in Loans without Specific Reserve		322
Impaired loans, Recorded Investment in Loans with Specific Reserve	322
Impaired loans, Related Allowance	7
Impaired loans, Average Balance	321	321
Impaired loans, Interest Income Recognized	3	$ 13
PCI Loans
Impaired loans
Carryng value	$ 2,880

Loans - Change in Accretable Yi

Loans - Change in Accretable Yield (Details) - PCI Loans - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Change in the accretable yield
Accretable yield	$ 7,304	$ 8,637
Accretion	(837)	(683)
Reclassification of nonaccreatable difference due to improvement in expected cash flows	731	328
Other changes, net	(398)	(566)
Accretable yield	$ 6,800	$ 7,716

Allowance for Loan Losses - Cha

Allowance for Loan Losses - Change in Allowance for Loan Losses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Changes in the allowance for loan losses
Balance at the beginning of period	$ 35,726	$ 37,066
Provision charged to operations	3,300	4,400
Loans charged off	(4,656)	(5,898)
Recoveries of loans previously charged off	1,230	1,166
Balance at the end of period	35,600	36,734
Real estate - residential mortgage
Changes in the allowance for loan losses
Balance at the beginning of period	2,371	2,559
Provision charged to operations	(16)	(33)
Loans charged off		(5)
Recoveries of loans previously charged off	22	14
Balance at the end of period	2,377	2,535
Real estate - construction
Changes in the allowance for loan losses
Balance at the beginning of period	605	816
Provision charged to operations	251	(75)
Balance at the end of period	856	741
Commercial, financial and agricultural
Changes in the allowance for loan losses
Balance at the beginning of period	7,478	7,393
Provision charged to operations	(238)	259
Loans charged off	(2)	(153)
Recoveries of loans previously charged off	5	7
Balance at the end of period	7,243	7,506
Equity lines
Changes in the allowance for loan losses
Balance at the beginning of period	688	685
Provision charged to operations		27
Balance at the end of period	688	712
Consumer Loan
Changes in the allowance for loan losses
Balance at the beginning of period	231	261
Provision charged to operations	3	(78)
Loans charged off	(71)	(62)
Recoveries of loans previously charged off	48	41
Balance at the end of period	211	162
Consumer Finance
Changes in the allowance for loan losses
Balance at the beginning of period	24,353	25,352
Provision charged to operations	3,300	4,300
Loans charged off	(4,583)	(5,678)
Recoveries of loans previously charged off	1,155	1,104
Balance at the end of period	$ 24,225	$ 25,078

Allowance for Loan Losses - All

Allowance for Loan Losses - Allowance and Loans by Impairment Methodology (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017	Dec. 31, 2016
Changes in the allowance for loan losses
Ending balance	$ 35,600	$ 35,726	$ 36,734	$ 37,066
Ending balance: individually evaluated for impairment	882	829
Ending balance, collectively evaluated for impairment	34,718	34,897
Loans:
Ending balance	1,028,105	1,027,788
Ending balance: individually evaluated for impairment	8,974	10,896
Ending balance: collectively evaluated for impairment	1,016,248	1,013,789
Real estate - residential mortgage
Changes in the allowance for loan losses
Ending balance	2,377	2,371	2,535	2,559
Ending balance: individually evaluated for impairment	208	214
Ending balance, collectively evaluated for impairment	2,169	2,157
Loans:
Ending balance	181,994	184,863
Ending balance: individually evaluated for impairment	3,620	3,636
Ending balance: collectively evaluated for impairment	177,884	180,735
Real estate - construction
Changes in the allowance for loan losses
Ending balance	856	605	741	816
Ending balance, collectively evaluated for impairment	856	605
Loans:
Ending balance	61,691	44,782
Ending balance: collectively evaluated for impairment	61,691	44,782
Commercial, financial and agricultural
Changes in the allowance for loan losses
Ending balance	7,243	7,478	7,506	7,393
Ending balance: individually evaluated for impairment	667	615
Ending balance, collectively evaluated for impairment	6,576	6,863
Loans:
Ending balance	424,162	437,884
Ending balance: individually evaluated for impairment	5,001	6,907
Ending balance: collectively evaluated for impairment	416,908	428,505
Equity lines
Changes in the allowance for loan losses
Ending balance	688	688	712	685
Ending balance, collectively evaluated for impairment	688	688
Loans:
Ending balance	54,445	55,237
Ending balance: individually evaluated for impairment	31	31
Ending balance: collectively evaluated for impairment	54,274	55,067
Consumer Loan
Changes in the allowance for loan losses
Ending balance	211	231	162	261
Ending balance: individually evaluated for impairment	7
Ending balance, collectively evaluated for impairment	204	231
Loans:
Ending balance	13,487	13,018
Ending balance: individually evaluated for impairment	322	322
Ending balance: collectively evaluated for impairment	13,165	12,696
Consumer Finance
Changes in the allowance for loan losses
Ending balance	24,225	24,353	$ 25,078	$ 25,352
Ending balance, collectively evaluated for impairment	24,225	24,353
Loans:
Ending balance	292,326	292,004
Ending balance: collectively evaluated for impairment	292,326	292,004
PCI
Loans:
Ending balance: acquired loans - purchase credit impaired	2,883	3,103
PCI | Real estate - residential mortgage
Loans:
Ending balance: acquired loans - purchase credit impaired	490	492
PCI | Commercial, financial and agricultural
Loans:
Ending balance: acquired loans - purchase credit impaired	2,253	2,472
PCI | Equity lines
Loans:
Ending balance: acquired loans - purchase credit impaired	$ 140	$ 139

Allowance for Loan Losses - Cre

Allowance for Loan Losses - Credit Quality Indicators (Details) - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Allowance for loan losses
Loans, excluding consumer finance	$ 735,779,000	$ 735,784,000
Loans	1,028,105,000	1,027,788,000
Pass
Allowance for loan losses
Loans, excluding consumer finance	706,444,000	702,198,000
Special Mention
Allowance for loan losses
Loans, excluding consumer finance	4,895,000	4,611,000
Substandard
Allowance for loan losses
Loans, excluding consumer finance	20,714,000	23,664,000
Substandard Nonaccrual
Allowance for loan losses
Loans, excluding consumer finance	3,726,000	5,311,000
Real estate - residential mortgage
Allowance for loan losses
Loans, excluding consumer finance	181,994,000	184,863,000
Loans	181,994,000	184,863,000
Real estate - residential mortgage | Pass
Allowance for loan losses
Loans, excluding consumer finance	178,151,000	179,963,000
Real estate - residential mortgage | Special Mention
Allowance for loan losses
Loans, excluding consumer finance	525,000	1,235,000
Real estate - residential mortgage | Substandard
Allowance for loan losses
Loans, excluding consumer finance	2,520,000	2,835,000
Real estate - residential mortgage | Substandard Nonaccrual
Allowance for loan losses
Loans, excluding consumer finance	798,000	830,000
Real estate - construction
Allowance for loan losses
Loans	61,691,000	44,782,000
Real estate - construction | Construction Lending
Allowance for loan losses
Loans, excluding consumer finance	53,916,000	41,449,000
Real estate - construction | Construction Lending | Pass
Allowance for loan losses
Loans, excluding consumer finance	53,916,000	41,449,000
Real estate - construction | Consumer lot lending
Allowance for loan losses
Loans, excluding consumer finance	7,775,000	3,333,000
Real estate - construction | Consumer lot lending | Pass
Allowance for loan losses
Loans, excluding consumer finance	7,195,000	3,333,000
Real estate - construction | Consumer lot lending | Special Mention
Allowance for loan losses
Loans, excluding consumer finance	580,000
Commercial, financial and agricultural
Allowance for loan losses
Loans	424,162,000	437,884,000
Commercial, financial and agricultural | Commercial real estate lending
Allowance for loan losses
Loans, excluding consumer finance	301,931,000	304,490,000
Commercial, financial and agricultural | Commercial real estate lending | Pass
Allowance for loan losses
Loans, excluding consumer finance	293,273,000	293,292,000
Commercial, financial and agricultural | Commercial real estate lending | Special Mention
Allowance for loan losses
Loans, excluding consumer finance	2,541,000	2,874,000
Commercial, financial and agricultural | Commercial real estate lending | Substandard
Allowance for loan losses
Loans, excluding consumer finance	4,057,000	4,528,000
Commercial, financial and agricultural | Commercial real estate lending | Substandard Nonaccrual
Allowance for loan losses
Loans, excluding consumer finance	2,060,000	3,796,000
Commercial, financial and agricultural | Land acquisition and development lending
Allowance for loan losses
Loans, excluding consumer finance	35,526,000	39,844,000
Commercial, financial and agricultural | Land acquisition and development lending | Pass
Allowance for loan losses
Loans, excluding consumer finance	21,362,000	24,253,000
Commercial, financial and agricultural | Land acquisition and development lending | Special Mention
Allowance for loan losses
Loans, excluding consumer finance	769,000
Commercial, financial and agricultural | Land acquisition and development lending | Substandard
Allowance for loan losses
Loans, excluding consumer finance	13,395,000	15,591,000
Commercial, financial and agricultural | Builder line lending
Allowance for loan losses
Loans, excluding consumer finance	29,573,000	29,596,000
Commercial, financial and agricultural | Builder line lending | Pass
Allowance for loan losses
Loans, excluding consumer finance	29,573,000	29,596,000
Commercial, financial and agricultural | Commercial business lending
Allowance for loan losses
Loans, excluding consumer finance	57,132,000	63,954,000
Commercial, financial and agricultural | Commercial business lending | Pass
Allowance for loan losses
Loans, excluding consumer finance	56,874,000	63,749,000
Commercial, financial and agricultural | Commercial business lending | Special Mention
Allowance for loan losses
Loans, excluding consumer finance	16,000	34,000
Commercial, financial and agricultural | Commercial business lending | Substandard
Allowance for loan losses
Loans, excluding consumer finance	213,000	137,000
Commercial, financial and agricultural | Commercial business lending | Substandard Nonaccrual
Allowance for loan losses
Loans, excluding consumer finance	29,000	34,000
Equity lines
Allowance for loan losses
Loans, excluding consumer finance	54,445,000	55,237,000
Loans	54,445,000	55,237,000
Equity lines | Pass
Allowance for loan losses
Loans, excluding consumer finance	52,937,000	53,870,000
Equity lines | Special Mention
Allowance for loan losses
Loans, excluding consumer finance	462,000	465,000
Equity lines | Substandard
Allowance for loan losses
Loans, excluding consumer finance	207,000	251,000
Equity lines | Substandard Nonaccrual
Allowance for loan losses
Loans, excluding consumer finance	839,000	651,000
Consumer Loan
Allowance for loan losses
Loans, excluding consumer finance	13,487,000	13,018,000
Loans	13,487,000	13,018,000
Consumer Loan | Pass
Allowance for loan losses
Loans, excluding consumer finance	13,163,000	12,693,000
Consumer Loan | Special Mention
Allowance for loan losses
Loans, excluding consumer finance	2,000	3,000
Consumer Loan | Substandard
Allowance for loan losses
Loans, excluding consumer finance	322,000	322,000
CVBK | Pass
Allowance for loan losses
Loans, excluding consumer finance		42,670,000
Loans	41,520,000
CVBK | Special Mention
Allowance for loan losses
Loans, excluding consumer finance		1,090,000
Loans	952,000
CVBK | Substandard
Allowance for loan losses
Loans, excluding consumer finance		1,980,000
Loans	1,880,000
CVBK | Substandard Nonaccrual
Allowance for loan losses
Loans, excluding consumer finance		$ 161,000
Loans	$ 146,000

Allowance for Loan Losses - Loa

Allowance for Loan Losses - Loans by Credit Quality Indicators - Performing and Non-Performing (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Allowance for loan losses
Loans	$ 1,028,105	$ 1,027,788
Consumer Finance
Allowance for loan losses
Loans	292,326	292,004
Consumer Finance | Performing
Allowance for loan losses
Loans	291,763	291,240
Consumer Finance | Nonperforming
Allowance for loan losses
Loans	$ 563	$ 764

Shareholders_ Equity, Other C52

Shareholders’ Equity, Other Comprehensive Income and Earnings Per Share - Shareholders' Equity (Details) - Common Stock - shares	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Repurchase Program
Shareholders’ Equity
Shares repurchased	0	0
Restricted Stock Tax Withholding Repurchases
Shareholders’ Equity
Shares repurchased	3,737	4,049

Shareholders_ Equity, Other C53

Shareholders’ Equity, Other Comprehensive Income and Earnings Per Share - Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Shareholders’ Equity, Other Comprehensive Income and Earnings Per Share
Deferred taxes included in AOCI	$ 968	$ 491
Net unrealized (losses) gains on securities	(1,371)	638
Net unrecognized gains on cash flow hedges	281	124
Net unrecognized losses on defined benefit plan	(2,638)	(2,649)
Total accumulated other comprehensive income	$ (3,728)	$ (1,887)

Shareholders_ Equity, Other C54

Shareholders’ Equity, Other Comprehensive Income and Earnings Per Share - Earnings Per Share (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Components of earnings per share calculations
Net income	$ 3,892	$ 2,731
Weighted average number of common shares used in earnings per share – basic (in shares)	3,501,164	3,483,007
Effect of dilutive securities:
Stock option awards		316
Weighted average number of shares used in earnings per share – assuming dilution	3,501,164	3,483,323

Shareholders_ Equity, Other C55

Shareholders’ Equity, Other Comprehensive Income and Earnings Per Share - Antidilutive Securities (Details) - shares	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2018
Antidilutive securities
Stock options outstanding		0
Stock options
Antidilutive securities
Antidilutive securities excluded from earnings per share	0

Employee Benefit Plans (Details

Employee Benefit Plans (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Components of net periodic benefit cost
Service cost, included in salaries and employee benefits	$ 306	$ 282
Other Components of Net Periodic Pension Cost
Interest cost	133	138
Expected return on plan assets	(318)	(287)
Amortization of prior service cost	(15)	(15)
Recognized net actuarial loss	29	38
Other components of net periodic pension cost, included in other noninterest income	(171)	(126)
Net periodic benefit cost	$ 135	$ 156

Fair Value of Assets and Liab57

Fair Value of Assets and Liabilities - Financial Assets Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Securities available for sale
Securities available for sale	$ 218,408	$ 218,976
Recurring
Securities available for sale
Securities available for sale	218,408	218,976
Loans held for sale	39,654	55,384
Total assets measured at fair value	261,601	276,315
Liabilities:
Derivative liabilities	1,897	1,261
Recurring | Cash Flow Hedges
Securities available for sale
Derivative asset	378	166
Recurring | Interest rate lock commitments/IRLC
Securities available for sale
Derivative asset	1,264	528
Recurring | Interest Rate Swap
Securities available for sale
Derivative asset	1,897	1,261
Liabilities:
Derivative liabilities	1,897	1,261
Level 2 | Recurring
Securities available for sale
Securities available for sale	218,408	218,976
Loans held for sale	39,654	55,384
Total assets measured at fair value	261,601	276,315
Liabilities:
Derivative liabilities	1,897	1,261
Level 2 | Recurring | Cash Flow Hedges
Securities available for sale
Derivative asset	378	166
Level 2 | Recurring | Interest rate lock commitments/IRLC
Securities available for sale
Derivative asset	1,264	528
Level 2 | Recurring | Interest Rate Swap
Securities available for sale
Derivative asset	1,897	1,261
Liabilities:
Derivative liabilities	1,897	1,261
U.S. government agencies and corporations
Securities available for sale
Securities available for sale	15,903	16,173
U.S. government agencies and corporations | Recurring
Securities available for sale
Securities available for sale	15,903	16,173
U.S. government agencies and corporations | Level 2 | Recurring
Securities available for sale
Securities available for sale	15,903	16,173
Mortgage-backed securities
Securities available for sale
Securities available for sale	101,849	97,058
Mortgage-backed securities | Recurring
Securities available for sale
Securities available for sale	101,849	97,058
Mortgage-backed securities | Level 2 | Recurring
Securities available for sale
Securities available for sale	101,849	97,058
Obligations of states and political subdivisions
Securities available for sale
Securities available for sale	100,656	105,745
Obligations of states and political subdivisions | Recurring
Securities available for sale
Securities available for sale	100,656	105,745
Obligations of states and political subdivisions | Level 2 | Recurring
Securities available for sale
Securities available for sale	$ 100,656	$ 105,745

Fair Value of Assets and Liab58

Fair Value of Assets and Liabilities - Financial Assets Measured at Fair Value on Non-Recurring Basis (Details) - Nonrecurring - USD ($)	3 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Fair value assets and liabilities - Nonrecurring Basis
Value above which impaired loans are valued using either the present value of expected future cash flows or fair value of the collateral	$ 500,000
Value below which loans are valued using the present value of expected future cash flows discounted at the loan's effective interest rate	500,000
Financial assets measured at fair value on a non-recurring basis	1,744,000	$ 3,606,000
Impaired loans, net
Fair value assets and liabilities - Nonrecurring Basis
Financial assets measured at fair value on a non-recurring basis	1,576,000	3,438,000
Other real estate owned, net
Fair value assets and liabilities - Nonrecurring Basis
Financial assets measured at fair value on a non-recurring basis	168,000	168,000
Level 3
Fair value assets and liabilities - Nonrecurring Basis
Financial assets measured at fair value on a non-recurring basis	1,744,000	3,606,000
Level 3 | Impaired loans, net
Fair value assets and liabilities - Nonrecurring Basis
Financial assets measured at fair value on a non-recurring basis	$ 1,576,000	3,438,000
Level 3 | Impaired loans, net | Minimum
Fair value assets and liabilities - Nonrecurring Basis
Discount rate	18.00%
Level 3 | Impaired loans, net | Maximum
Fair value assets and liabilities - Nonrecurring Basis
Discount rate	30.00%
Level 3 | Other real estate owned, net
Fair value assets and liabilities - Nonrecurring Basis
Financial assets measured at fair value on a non-recurring basis	$ 168,000	$ 168,000
Discount rate	28.00%

Fair Value of Assets and Liab59

Fair Value of Assets and Liabilities - Carrying Value and Estimated Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Assets:
Securities available for sale	$ 218,408	$ 218,976
Bank-owned life insurance	15,684	15,589
Carrying Value
Assets:
Cash and short-term investments	148,048	119,423
Securities available for sale	218,408	218,976
Loans, net	992,505	992,062
Loans held for sale	39,654	55,384
Bank-owned life insurance	15,684	15,589
Accrued interest receivable	7,189	7,589
Financial liabilities:
Demand deposits	831,736	823,476
Time deposits	354,357	347,953
Borrowings	166,989	167,860
Accrued interest payable	845	838
Total Fair Value
Assets:
Cash and short-term investments	148,048	119,423
Securities available for sale	218,408	218,976
Loans, net	973,502	983,620
Loans held for sale	39,654	55,384
Bank-owned life insurance	15,684	15,589
Accrued interest receivable	7,189	7,589
Financial liabilities:
Demand deposits	831,736	823,476
Time deposits	353,845	350,681
Borrowings	159,437	159,670
Accrued interest payable	845	838
Total Fair Value | Level 1
Assets:
Cash and short-term investments	148,048	119,423
Accrued interest receivable	7,189	7,589
Financial liabilities:
Demand deposits	831,736	823,476
Accrued interest payable	845	838
Total Fair Value | Level 2
Assets:
Securities available for sale	218,408	218,976
Loans held for sale	39,654	55,384
Bank-owned life insurance	15,684	15,589
Financial liabilities:
Time deposits	353,845	350,681
Borrowings	159,437	159,670
Total Fair Value | Level 3
Assets:
Loans, net	973,502	983,620
Interest rate lock commitments/IRLC | Carrying Value
Assets:
Derivative asset	1,264	528
Interest rate lock commitments/IRLC | Total Fair Value
Assets:
Derivative asset	1,264	528
Interest rate lock commitments/IRLC | Total Fair Value | Level 2
Assets:
Derivative asset	1,264	528
Interest Rate Swap | Carrying Value
Assets:
Derivative asset	1,897	1,261
Financial liabilities:
Derivative liabilities	1,897	1,261
Interest Rate Swap | Total Fair Value
Assets:
Derivative asset	1,897	1,261
Financial liabilities:
Derivative liabilities	1,897	1,261
Interest Rate Swap | Total Fair Value | Level 2
Assets:
Derivative asset	1,897	1,261
Financial liabilities:
Derivative liabilities	1,897	1,261
Cash Flow Hedges | Carrying Value
Assets:
Derivative asset	378	166
Cash Flow Hedges | Total Fair Value
Assets:
Derivative asset	378	166
Cash Flow Hedges | Total Fair Value | Level 2
Assets:
Derivative asset	$ 378	$ 166

Business Segments - Segment Rep

Business Segments - Segment Reporting (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018USD ($)segment	Mar. 31, 2017USD ($)	Dec. 31, 2017USD ($)
Business Segments
Number of Operating Segments | segment	3
Revenues:
Interest income	$ 22,744	$ 22,021
Gains on sales of loans	2,239	1,943
Other noninterest income	4,207	4,327
Total operating income	29,190	28,291
Expenses:
Provision for loan losses	3,300	4,400
Interest expense	2,576	2,270
Salaries and employee benefits	10,733	10,793
Other noninterest expenses	7,806	7,176
Total operating expenses	24,415	24,639
Income (loss) before income taxes	4,775	3,652
Income tax expense (benefit)	883	921
Net income	3,892	2,731
Total assets	1,524,926	1,464,464	$ 1,509,056
Goodwill	14,425	14,425	$ 14,425
Capital expenditures	621	597
Operating Segments | Retail Banking
Revenues:
Interest income	13,160	11,972
Other noninterest income	2,619	2,624
Total operating income	15,779	14,596
Expenses:
Provision for loan losses		100
Interest expense	1,617	1,465
Salaries and employee benefits	6,486	6,359
Other noninterest expenses	4,981	4,443
Total operating expenses	13,084	12,367
Income (loss) before income taxes	2,695	2,229
Income tax expense (benefit)	383	407
Net income	2,312	1,822
Total assets	1,356,936	1,305,717
Goodwill	3,702	3,702
Capital expenditures	572	379
Operating Segments | Mortgage Banking
Revenues:
Interest income	367	316
Gains on sales of loans	2,239	1,943
Other noninterest income	857	1,087
Total operating income	3,463	3,346
Expenses:
Interest expense	143	88
Salaries and employee benefits	1,443	1,483
Other noninterest expenses	1,275	1,279
Total operating expenses	2,861	2,850
Income (loss) before income taxes	602	496
Income tax expense (benefit)	167	199
Net income	435	297
Total assets	54,516	56,178
Capital expenditures	21	194
Operating Segments | Consumer Finance
Revenues:
Interest income	10,849	11,206
Other noninterest income	248	232
Total operating income	11,097	11,438
Expenses:
Provision for loan losses	3,300	4,300
Interest expense	2,165	1,907
Salaries and employee benefits	2,265	2,412
Other noninterest expenses	1,307	1,253
Total operating expenses	9,037	9,872
Income (loss) before income taxes	2,060	1,566
Income tax expense (benefit)	562	624
Net income	1,498	942
Total assets	292,417	301,506
Goodwill	10,723	10,723
Capital expenditures	28	13
Operating Segments | Other
Revenues:
Other noninterest income	483	384
Total operating income	483	384
Expenses:
Interest expense	283	283
Salaries and employee benefits	539	539
Other noninterest expenses	243	201
Total operating expenses	1,065	1,023
Income (loss) before income taxes	(582)	(639)
Income tax expense (benefit)	(229)	(309)
Net income	(353)	(330)
Total assets	5,066	5,873
Capital expenditures		11
Eliminations
Revenues:
Interest income	(1,632)	(1,473)
Total operating income	(1,632)	(1,473)
Expenses:
Interest expense	(1,632)	(1,473)
Total operating expenses	(1,632)	(1,473)
Total assets	$ (184,009)	$ (204,810)

Business Segments - Segment Deb

Business Segments - Segment Debt (Details)	3 Months Ended
	Mar. 31, 2018
Mortgage Banking | FHLB Advances
Business Segments
Variable rate, spread (as a percent)	0.50%
Consumer Finance | Minimum
Business Segments
Variable rate, spread (as a percent)	2.00%
Consumer Finance | Maximum
Business Segments
Variable rate, spread (as a percent)	8.00%
Consumer Finance | LIBOR | Minimum
Business Segments
Variable rate, spread (as a percent)	2.00%

Commitments and Financial Ins62

Commitments and Financial Instruments with Off-Balance-Sheet Risk - IRLC and Other Derivatives (Details) - C&F Mortgage	3 Months Ended
	Mar. 31, 2018
Commitments and Financial Instruments with Off-Balance Sheet Risk
Recourse period for early payment default, minimum	90 days
Recourse period for early payment default, maximum	1 year

Commitments and Financial Ins63

Commitments and Financial Instruments with Off-Balance-Sheet Risk - Changes in Allowance for Indemnifications Losses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Change in the allowance for indemnification losses
Provision for indemnifications	$ 36	$ 36
Indemnification reserve for recourse provisions
Change in the allowance for indemnification losses
Allowance, beginning of period	2,489	2,303
Provision for indemnifications	36	36
Allowance, end of period	$ 2,525	$ 2,339

Derivative Financial Instrume64

Derivative Financial Instruments (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018USD ($)position	Dec. 31, 2017USD ($)position
Derivatives and other information
Changes in fair value of interest rate swaps	$ 0
Interest Rate Swap | Designated as Hedging Instrument
Derivatives and other information
Notional amount	$ 25,000	$ 25,000
Position | position	3	3
Derivative asset	$ 378	$ 166
Matched interest rate swap with borrower | Not designated as hedges
Derivatives and other information
Notional amount	$ 45,046	$ 41,295
Position | position	7	6
Derivative asset	$ 216	$ 284
Derivative Liabilities	1,681	977
Matched interest rate swap with counterparty | Not designated as hedges
Derivatives and other information
Notional amount	$ 45,046	$ 41,295
Position | position	7	6
Derivative asset	$ 1,681	$ 977
Derivative Liabilities	216	284
Interest rate lock commitments/IRLC | Not designated as hedges
Derivatives and other information
Notional amount	$ 130,452	$ 99,140
Position | position	529	440
Derivative asset	$ 1,264	$ 528

Other Noninterest Expenses (Det

Other Noninterest Expenses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Other Noninterest Expenses
Data processing service and maintenance contracts	$ 776	$ 649
Professional fees	739	706
Data processing fees	717	609
Marketing and advertising expenses	460	365
Travel and educational expenses	371	286
Telecommunication expenses	346	330
Interchange expense	334	249
All other noninterest expenses	2,032	2,011
Total Other Noninterest Expenses	$ 5,775	$ 5,205