C&F Financial (CFFI) 10-Q 7 Nov 18 2018 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2018	Nov. 30, 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	Sep. 30, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q3
Entity Common Stock, Shares Outstanding		3,501,741
Current Fiscal Year End Date	--12-31
Entity Small Business	false
Entity Emerging Growth Company	false

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017	[1]
Assets
Cash and due from banks	$ 12,440	$ 14,070
Interest-bearing deposits in other banks	96,709	105,353
Total cash and cash equivalents	109,149	119,423
Securities—available for sale at fair value, amortized cost of $220,753 and $218,168, respectively	217,114	218,976
Loans held for sale, at fair value	45,979	55,384
Loans, net of allowance for loan losses of $34,959 and $35,726, respectively	1,002,423	992,062
Restricted stock, at cost	3,247	3,298
Corporate premises and equipment, net	37,053	36,969
Other real estate owned, net of valuation allowance of $57 and $57, respectively	188	168
Accrued interest receivable	7,354	7,589
Goodwill	14,425	14,425
Core deposit and other amortizable intangible assets, net	1,234	1,594
Bank-owned life insurance	15,869	15,589
Net deferred tax asset	12,953	12,093
Other assets	32,616	31,486
Total assets	1,499,604	1,509,056
Deposits
Noninterest-bearing demand deposits	276,298	247,669
Savings and interest-bearing demand deposits	535,915	575,807
Time deposits	346,242	347,953
Total deposits	1,158,455	1,171,429
Short-term borrowings	15,030	20,621
Long-term borrowings	119,529	122,029
Trust preferred capital notes	25,237	25,210
Accrued interest payable	916	838
Other liabilities	30,778	27,227
Total liabilities	1,349,945	1,367,354
Commitments and contingent liabilities (Note 9)
Shareholders’ equity
Common stock ($1.00 par value, 8,000,000 shares authorized, 3,503,399 and 3,495,845 shares issued and outstanding, respectively, includes 132,905 and 137,880 of unvested shares, respectively)	3,370	3,358
Additional paid-in capital	13,619	12,800
Retained earnings	137,851	127,431
Accumulated other comprehensive loss, net	(5,181)	(1,887)
Total shareholders’ equity	149,659	141,702
Total liabilities and shareholders’ equity	$ 1,499,604	$ 1,509,056
[1]	Derived from audited consolidated financial statements.

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017	[1]
Consolidated Balance Sheets
Available-for-sale securities, amortized cost	$ 220,753	$ 218,168
Loans, allowance for loan losses	34,959	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	3,503,399	3,495,845
Common stock, shares outstanding	3,503,399	3,495,845
Common stock, nonvested shares	132,905	137,880
[1]	Derived from audited consolidated financial statements.

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Interest income
Interest and fees on loans	$ 21,673	$ 20,971	$ 63,116	$ 62,036
Interest on interest-bearing deposits and federal funds sold	527	314	1,544	801
Interest and dividends on securities
U.S. government agencies and corporations	90	89	265	253
Mortgage-backed securities	528	380	1,516	1,088
Tax-exempt obligations of states and political subdivisions	675	773	2,086	2,453
Taxable obligations of states and political subdivisions	84	64	229	176
Corporate bonds and other	114	112	330	340
Total interest income	23,691	22,703	69,086	67,147
Interest expense
Savings and interest-bearing deposits	411	292	1,123	860
Time deposits	1,020	907	2,957	2,634
Borrowings	1,081	992	3,102	2,750
Trust preferred capital notes	291	300	861	862
Total interest expense	2,803	2,491	8,043	7,106
Net interest income	20,888	20,212	61,043	60,041
Provision for loan losses	2,400	4,435	7,700	11,935
Net interest income after provision for loan losses	18,488	15,777	53,343	48,106
Noninterest income
Gains on sales of loans	1,752	2,156	6,399	6,718
Service charges on deposit accounts	1,031	1,178	3,121	3,356
Other service charges and fees	1,296	1,327	3,900	3,951
Net gains on calls of available for sale securities	5	2	9	10
Wealth management services income, net	441	382	1,325	1,132
Interchange income	981	850	2,868	2,559
Other	1,121	947	2,692	2,805
Total noninterest income	6,627	6,842	20,314	20,531
Noninterest expenses
Salaries and employee benefits	10,967	10,854	32,773	32,838
Occupancy	2,207	1,908	6,262	5,756
Other	5,500	5,609	16,939	16,156
Total noninterest expenses	18,674	18,371	55,974	54,750
Income before income taxes	6,441	4,248	17,683	13,887
Income tax expense	1,340	1,231	3,620	4,000
Net income	$ 5,101	$ 3,017	$ 14,063	$ 9,887
Net income per share - basic (in dollars per share)	$ 1.46	$ 0.87	$ 4.02	$ 2.84
Net income – assuming dilution (in Dollars per share)	$ 1.46	$ 0.87	$ 4.02	$ 2.84
Weighted average number of shares - basic (in shares)	3,503,371	3,487,170	3,502,550	3,485,725
Weighted average number of shares - assuming dilution (in shares)	3,503,371	3,487,170	3,502,550	3,485,830

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income		$ 5,101	$ 3,017	$ 14,063	$ 9,887
Defined benefit plan:
Reclassification of recognized net actuarial losses into net income	[1]	32	41	93	115
Related income tax effects		(7)	(16)	(20)	(41)
Amortization of prior service credit into net income	[1]	(16)	(15)	(46)	(45)
Related income tax effects		4	5	10	16
Defined benefit plan, net of tax		13	15	37	45
Cash flow hedges:
Unrealized holding (losses) gains arising during the period		(5)	57	245	54
Related income tax effects		1	(23)	(63)	(22)
Cash flow hedges, net of tax		(4)	34	182	32
Securities available for sale:
Unrealized holding (losses) gains arising during the period		(1,252)	(263)	(4,438)	308
Related income tax effects		263	92	932	(108)
Reclassification of net realized gains into net income	[2]	(5)	(2)	(9)	(10)
Related income tax effects		1	1	2	4
Securities available for sale, net of tax		(993)	(172)	(3,513)	194
Other comprehensive (loss) income, net of tax		(984)	(123)	(3,294)	271
Comprehensive income		$ 4,117	$ 2,894	$ 10,769	$ 10,158
[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]	These items 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			9,887		9,887
Other comprehensive (loss)/income				271	271
Stock options exercised	2	81			83
Share-based compensation		1,075			1,075
Restricted stock vested	17	(17)
Common stock issued	3	109			112
Common stock purchased	(4)	(181)			(185)
Cash dividends declared – common stock			(3,451)		(3,451)
Balance, end of period at Sep. 30, 2017	3,349	12,772	131,598	(713)	147,006
Balance, beginning of the period at Dec. 31, 2017	3,358	12,800	127,431	(1,887)	141,702	[1]
Comprehensive income:
Net income			14,063		14,063
Other comprehensive (loss)/income				(3,294)	(3,294)
Share-based compensation		956			956
Restricted stock vested	15	(15)
Common stock issued	1	106			107
Common stock purchased	(4)	(228)			(232)
Cash dividends declared – common stock			(3,643)		(3,643)
Balance, end of period at Sep. 30, 2018	$ 3,370	$ 13,619	$ 137,851	$ (5,181)	$ 149,659
[1]	Derived from audited consolidated financial statements.

Consolidated Statements of Sh_2

Consolidated Statements of Shareholders’ Equity (Parentheticals) - $ / shares	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
Cash dividends declared – common stock (in dollars per share)	$ 1.04	$ 0.99

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018		Sep. 30, 2017
Operating activities:
Net income	$ 14,063		$ 9,887
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	2,345		2,034
Provision for loan losses	7,700		11,935
Provision for indemnifications	53		140
Share-based compensation	956		1,075
Pension expense	315		470
Pension contribution	(3,000)		(1,500)
Net accretion of certain acquisition-related discounts	(2,329)		(1,319)
Accretion of discounts and amortization of premiums on securities, net	1,349		1,236
Amortization of intangible assets	360		527
Net realized gains on calls of securities available for sale	(9)		(10)
Net realized gains on sales of other real estate owned			(10)
Net realized gains on sale of corporate premises and equipment	(205)		(16)
Income from bank-owned life insurance	(248)		(253)
Origination of loans held for sale	(538,704)		(556,829)
Proceeds from sales of loans held for sale	554,508		566,197
Gains on sales of loans held for sale	(6,399)		(6,718)
Change in other assets and liabilities:
Accrued interest receivable	235		156
Other assets	2,501		(434)
Accrued interest payable	78		103
Other liabilities	2,644		(1,002)
Net cash provided by operating activities	36,213		25,669
Investing activities:
Proceeds from maturities and calls of securities available for sale and payments on mortgage-backed securities	35,267		33,960
Purchases of securities available for sale	(39,192)		(33,855)
Net proceeds from sales (purchases) of restricted stock	51		(40)
Purchases of loans held for investment by non-bank affiliates	(103,759)		(91,267)
Repayments on loans held for investment by non-bank affiliates	87,644		88,907
Net decrease (increase) in retail banking loans held for investment	471		(34,737)
Proceeds from sales of other real estate owned			245
Purchases of corporate premises and equipment	(2,447)		(2,404)
Proceeds from sales of corporate premises and equipment	223		53
Net cash used in investing activities	(21,742)		(39,138)
Financing activities:
Net (decrease) increase in demand, interest-bearing demand and savings deposits	(11,263)		23,372
Net decrease in time deposits	(1,711)		(672)
Net (decrease) increase in short-term borrowings	(5,591)		1,293
Repayments of long-term borrowings	(2,500)
Issuance of common stock	107		112
Proceeds from exercise of stock options			83
Cash dividends paid	(3,643)		(3,451)
Other financing activities	(144)
Net cash (used in) provided by financing activities	(24,745)		20,737
Net (decrease) increase in cash and cash equivalents	(10,274)		7,268
Cash and cash equivalents at beginning of periods	119,423	[1]	103,201
Cash and cash equivalents at end of period	109,149		110,469
Supplemental disclosure
Interest paid	7,938		6,976
Income taxes paid	190		4,616
Supplemental disclosure of noncash investing and financing activities
Unrealized (losses) gains on securities available for sale	(4,447)		298
Transfers from loans to other real estate owned	20		208
Value of shares withheld at vesting for employee taxes	232		185
Unrealized gains on cash flow hedging instruments	$ 245		$ 54
[1]	Derived from audited consolidated financial statements.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 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 liabilities 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 (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 third-party service providers. C&F Insurance Services, Inc. was organized in July 1999 for the primary purpose of owning an equity interest in an independent insurance agency that operates in Virginia and North Carolina. CVB Title Services, Inc. was organized for the primary purpose of owning an equity interest in a full service title and settlement agency. 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 (OREO), 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 Sheets. The Corporation’s derivative financial instruments 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 and are designated 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 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 third quarter of 2018 and the first nine months of 2018 was $316,000 ($235,000 after tax) and $956,000 ($710,000 after tax), respectively, for restricted stock granted during 2013 through 2018. As of September 30, 2018, there was $2.65 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 nine 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 11,610 58.30 Vested (14,625) 40.47 Forfeited (1,960) 43.26 Unvested, September 30, 2018 132,905 45.14 2017 Weighted- Average Grant Date Shares Fair Value Unvested, December 31, 2016 141,755 $ 39.77 Granted 15,725 45.46 Vested (17,260) 35.40 Forfeited (1,690) 43.16 Unvested, September 30, 2017 138,530 40.91 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 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 Corporation 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 or quarter 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 began disclosing the fair value of these financial instruments using an exit price notion rather than an entry price notion in the first quarter of 2018 (see “Note 7: Fair Value of Assets and Liabilities”). On January 1, 2018, the Corporation 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, income of $116,000 and $370,000 was reclassified from “Salaries and employee benefits” to “Noninterest income – Other” on the Consolidated Statements of Income for the three and nine months ended September 30, 2017, respectively. In the third quarter of 2018, the Corporation adopted ASU 2017-12, “ Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities .” ASU 2017-12 improves the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements by expanding the types of risk management activities to which hedge accounting can be applied and by simplifying its application. As a result of the adoption of ASU 2017-12, any ineffectiveness in qualifying and designated cash flow hedging relationships will be recorded in other comprehensive income rather than in earnings. The adoption of ASU 2017-12 did not have a significant effect on the financial statements, and most of its provisions are effective for the Corporation on a prospective basis. In the third quarter of 2018, the Corporation adopted ASU 2017-08, “ Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities, ” which requires all entities that hold investments in callable debt securities at a premium to amortize the premium to the earliest call date. The amendments in ASU 2017-08 were applied on a modified retrospective basis as of January 1, 2018 and did not have a significant effect on the financial statements. Recent Significant Accounting Pronouncements: In February 2016, the Financial Accounting Standards Board (FASB) issued ASU 2016-02, “ Leases (Topic 842) .” Subsequently, this ASU was amended when the FASB issued other updates, including ASU 2018-10, “Codification Improvements to Topic 842, Leases” and ASU 2018-11, “Leases (Topic 842)” (collectively, ASC 842). Among other things in the amendments in ASC 842, 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 ASC 842 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 by either applying the new guidance as of the beginning of the earliest comparative period presented in the financial statements or by electing an optional transition method that will apply the new guidance as of the beginning of the period of adoption. Under the optional transition method, prior periods will continue to be reported under current guidance. The modified retrospective approach would not require any transition accounting for leases that expired before application date under either method. Lessees and lessors may not apply a full retrospective transition approach. The Corporation has completed an inventory of its leases, which comprise primarily leases of real estate and office equipment in which the Corporation is the lessee, and all of which are accounted for as operating leases under current guidance. The Corporation will adopt ASC 842 effective January 1, 2019 using the optional transition method. Under a practical expedient available for transition, the classification of leases will remain the same upon adoption of ASC 842. Upon transition, the Corporation will record a lease liability of approximately $3 million for its remaining payment obligations as of January 1, 2019 for leases in effect at that time and a corresponding right of use asset. This estimate of the required lease liability is based on leases in effect as of September 30, 2018. The measurement of the lease liability will continue to be refined as the implementation process is completed. The Corporation expects to finalize its controls and procedures for accounting for leases under ASC 842 in the fourth quarter of 2018. Adoption of ASC 842 is not expected to change the pattern of recognition of expense for the Corporation’s leases in effect as of September 30, 2018. 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 amendments will be applied on a modified retrospective basis, with the cumulative effect of adopting the new standard being recorded as an adjustment to opening retained earnings in the period of adoption. 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 consolidated 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 consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement.” These amendments modify the disclosure requirements in Topic 820 to add disclosures regarding changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements and the narrative description of measurement uncertainty. Certain disclosure requirements in Topic 820 are also removed or modified. The amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Certain of the amendments are to be applied prospectively while others are to be applied retrospectively. Early adoption is permitted. The Corporation does not expect the adoption of ASU 2018-13 to have a material effect on its consolidated financial statements. In August 2018, the FASB issued ASU 2018-14, “Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans.” These amendments modify the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. Certain disclosure requirements have been deleted while the following disclosure requirements have been added: the weighted-average interest crediting rates for cash balance plans and other plans with promised interest crediting rates and an explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period. The amendments also clarify the disclosure requirements regarding the projected benefit obligation (PBO) and fair value of plan assets for plans with PBOs in excess of plan assets and the accumulated benefit obligation (ABO) and fair value of plan assets for plans with ABOs in excess of plan assets. The amendments are effective for fiscal years ending after December 15, 2020. Early adoption is permitted. The Corporation does not expect the adoption of ASU 2018-14 to have a material effect on its consolidated financial statements. Other accounting standards that have been issued by the FASB or other standards-setting bodies are not currently expected to have a material effect on the Corporation’s financial position, results of operations or cash flows.

Securities

Securities	9 Months Ended
	Sep. 30, 2018
Securities
Securities	NOTE 2: Securities The Corporation’s debt securities, all of which are classified as available for sale, are summarized as follows: September 30, 2018 Gross Gross Amortized Unrealized Unrealized (Dollars in thousands) Cost Gains Losses Fair Value U.S. government agencies and corporations $ 17,011 $ — $ (822) $ 16,189 Mortgage-backed securities 106,940 29 (3,239) 103,730 Obligations of states and political subdivisions 96,802 831 (438) 97,195 $ 220,753 $ 860 $ (4,499) $ 217,114 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 September 30, 2018, 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. September 30, 2018 Amortized (Dollars in thousands) Cost Fair Value Due in one year or less $ 53,133 $ 52,987 Due after one year through five years 150,514 147,076 Due after five years through ten years 11,769 11,711 Due after ten years 5,337 5,340 $ 220,753 $ 217,114 The following table presents the gross realized gains and losses on and the proceeds from maturities, calls and paydowns of securities. There were no sales of securities during the periods presented. Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2018 2017 2018 2017 Realized gains and losses from calls of securities: Gross realized gains $ 5 $ 2 $ 10 $ 14 Gross realized losses — — (1) (4) Net realized gains $ 5 $ 2 $ 9 $ 10 Proceeds from maturities, calls and paydowns of securities $ 12,865 $ 12,472 $ 35,267 $ 33,960 The Corporation pledges securities primarily to secure public deposits and repurchase agreements. Securities with an aggregate amortized cost of $93.24 million and aggregate fair value of $91.90 million were pledged at September 30, 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 September 30, 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 $ 749 $ 1 $ 15,440 $ 821 $ 16,189 $ 822 Mortgage-backed securities 53,707 1,290 44,876 1,949 98,583 3,239 Obligations of states and political subdivisions 27,814 182 12,944 256 40,758 438 Total temporarily impaired securities $ 82,270 $ 1,473 $ 73,260 $ 3,026 $ 155,530 $ 4,499 There were 270 debt securities totaling $155.53 million considered temporarily impaired at September 30, 2018. The primary cause of the temporary impairments in the Corporation's investments in debt securities was fluctuations in interest rates. Interest rates have increased consistently across the United States Treasury security yield curve during 2018, 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 September 30, 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 99 percent were rated “A” or better by S&P or Moody’s, as measured by market value, at September 30, 2018. For the approximately one percent not rated “A” or better, as measured by market value at September 30, 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 September 30, 2018 and no other-than-temporary impairment loss has been recognized in net income. 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 stock totaled $3.25 million at September 30, 2018 and consisted of Federal Home Loan Bank (FHLB) stock. Restricted stock is generally viewed as a long-term investment, which is carried at cost because there is no market for the stock other than the FHLBs. Therefore, when evaluating restricted stock for impairment, its value is based on the ultimate recoverability of the par value rather than by recognizing any temporary decline in value. The Corporation does not consider its investment in restricted stock to be other-than-temporarily impaired at September 30, 2018 and no impairment has been recognized.

Loans

Loans	9 Months Ended
	Sep. 30, 2018
Loans
Loans	NOTE 3: Loans Major classifications of loans are summarized as follows: September 30, December 31, (Dollars in thousands) 2018 2017 Real estate – residential mortgage $ 184,362 $ 184,863 Real estate – construction 1 55,650 44,782 Commercial, financial and agricultural 2 426,310 437,884 Equity lines 55,655 55,237 Consumer 15,464 13,018 Consumer finance 299,941 292,004 1,037,382 1,027,788 Less allowance for loan losses (34,959) (35,726) Loans, net $ 1,002,423 $ 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 $216,000 and $290,000 of demand deposit overdrafts at September 30, 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 are as follows: September 30, 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 $ 10,253 $ 40,140 $ 50,393 $ 12,856 $ 45,083 $ 57,939 Carrying amount Real estate – residential mortgage $ 439 $ 9,166 $ 9,605 $ 492 $ 10,855 $ 11,347 Commercial, financial and agricultural 1 1,593 19,778 21,371 2,472 22,305 24,777 Equity lines 116 9,216 9,332 139 9,621 9,760 Consumer — 6 6 — 12 12 Total acquired loans $ 2,148 $ 38,166 $ 40,314 $ 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: September 30, December 31, (Dollars in thousands) 2018 2017 Real estate – residential mortgage $ 611 $ 830 Commercial, financial and agricultural: Commercial real estate lending 1,206 3,796 Commercial business lending 24 34 Equity lines 912 651 Consumer — — Consumer finance 1,025 764 Total loans on nonaccrual status $ 3,778 $ 6,075 The past due status of loans as of September 30, 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 $ 405 $ — $ 294 $ 699 $ 439 $ 183,224 $ 184,362 $ 194 Real estate – construction: Construction lending — — — — — 44,756 44,756 — Consumer lot lending — — — — — 10,894 10,894 — Commercial, financial and agricultural: Commercial real estate lending 65 1,397 315 1,777 1,593 302,413 305,783 315 Land acquisition and development lending — — — — — 34,035 34,035 — Builder line lending 247 — — 247 — 27,593 27,840 — Commercial business lending — — 24 24 — 58,628 58,652 — Equity lines 250 186 72 508 116 55,031 55,655 72 Consumer 154 — — 154 — 15,310 15,464 — Consumer finance 9,892 1,974 1,025 12,891 — 287,050 299,941 — Total $ 11,013 $ 3,557 $ 1,730 $ 16,300 $ 2,148 $ 1,018,934 $ 1,037,382 $ 581 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 $78,000. The table above includes the following: · nonaccrual loans that are current of $942,000, 30-59 days past due of $218,000, 60-89 days past due of $1.39 million and 90+ days past due of $1.23 million. · performing loans purchased in the acquisition of CVB that are current of $37.97 million, 30-59 days past due of $120,000 and 90+ days past due of $72,000. 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 $4.71 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) were as follows: Three Months Ended September 30, 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 Real estate – residential mortgage – interest rate concession — $ — $ — 2 $ 365 $ 365 Consumer – interest rate concession 1 5 5 — — — Total 1 $ 5 $ 5 2 $ 365 $ 365 Nine Months Ended September 30, 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 Real estate – residential mortgage – interest reduction — $ — $ — 2 $ 365 $ 365 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 — — — 4 2,154 2,154 Consumer – interest rate concession 1 5 5 — — — Total 1 $ 5 $ 5 9 $ 7,165 $ 7,165 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. All TDRs are considered impaired loans and are individually evaluated in the determination of the allowance for loan losses. The specific reserve associated with a TDR is reevaluated when a TDR payment default occurs. There were no TDR payment defaults during the three and nine months ended September 30, 2018. During the three and nine months ended September 30, 2017, TDR payment defaults occurred on three loans totaling $4.65 million that were part of a single commercial relationship and were more than 90 days past due. Impaired loans, which included TDRs of $6.96 million, and the related allowance at September 30, 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 $ 3,020 $ 1,153 $ 1,768 $ 99 $ 3,010 $ 109 Commercial, financial and agricultural: Commercial real estate lending 4,245 1,639 2,335 674 4,845 108 Commercial business lending 33 25 — — 26 — Equity lines 365 31 327 326 360 1 Consumer 5 — 5 5 5 — Total $ 7,668 $ 2,848 $ 4,435 $ 1,104 $ 8,246 $ 218 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 $10.25 million and a carrying value of $2.15 million at September 30, 2018. Determining the fair value of PCI 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: Nine Months Ended September 30, (Dollars in thousands) 2018 2017 Accretable yield, balance at beginning of period $ 7,304 $ 8,637 Accretion (2,892) (2,176) Reclassification of nonaccretable difference due to improvement in expected cash flows 1,410 1,022 Other changes, net (324) 306 Accretable yield, balance at end of period $ 5,498 $ 7,789

Allowance for Loan Losses

Allowance for Loan Losses	9 Months Ended
	Sep. 30, 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 nine months ended September 30, 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 (122) 174 (625) 450 123 7,700 7,700 Loans charged off — — (2) — (248) (11,743) (11,993) Recoveries of loans previously charged off 52 — 46 — 174 3,254 3,526 Balance at September 30, 2018 $ 2,301 $ 779 $ 6,897 $ 1,138 $ 280 $ 23,564 $ 34,959 The following table presents the changes in the allowance for loan losses by major classification during the nine months ended September 30, 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 (69) (278) 500 23 24 11,735 11,935 Loans charged off (154) — (273) (20) (224) (15,464) (16,135) Recoveries of loans previously charged off 59 — 18 2 143 3,247 3,469 Balance at September 30, 2017 $ 2,395 $ 538 $ 7,638 $ 690 $ 204 $ 24,870 $ 36,335 The following table presents, as of September 30, 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 September 30, 2018 $ 2,301 $ 779 $ 6,897 $ 1,138 $ 280 $ 23,564 $ 34,959 Ending balance: individually evaluated for impairment $ 99 $ — $ 674 $ 326 $ 5 $ — $ 1,104 Ending balance: collectively evaluated for impairment $ 2,202 $ 779 $ 6,223 $ 812 $ 275 $ 23,564 $ 33,855 Ending balance: acquired loans - PCI $ — $ — $ — $ — $ — $ — $ — Loans: Ending balance at September 30, 2018 $ 184,362 $ 55,650 $ 426,310 $ 55,655 $ 15,464 $ 299,941 $ 1,037,382 Ending balance: individually evaluated for impairment $ 2,921 $ — $ 3,999 $ 358 $ 5 $ — $ 7,283 Ending balance: collectively evaluated for impairment $ 181,002 $ 55,650 $ 420,718 $ 55,181 $ 15,459 $ 299,941 $ 1,027,951 Ending balance: acquired loans - PCI $ 439 $ — $ 1,593 $ 116 $ — $ — $ 2,148 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 September 30, 2018 were as follows: Special Substandard (Dollars in thousands) Pass Mention Substandard Nonaccrual Total 1 Real estate – residential mortgage $ 180,854 $ 1,223 $ 1,674 $ 611 $ 184,362 Real estate – construction: Construction lending 44,756 — — — 44,756 Consumer lot lending 10,044 850 — — 10,894 Commercial, financial and agricultural: Commercial real estate lending 298,883 5,007 687 1,206 305,783 Land acquisition and development lending 24,040 9,995 — — 34,035 Builder line lending 27,840 — — — 27,840 Commercial business lending 58,191 437 — 24 58,652 Equity lines 54,257 393 93 912 55,655 Consumer 15,457 1 6 — 15,464 $ 714,322 $ 17,906 $ 2,460 $ 2,753 $ 737,441 1 At September 30, 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 $38.49 million pass rated, $1.20 million special mention, $528,000 substandard and $101,000 substandard nonaccrual. Non- (Dollars in thousands) Performing Performing Total Consumer finance $ 298,916 $ 1,025 $ 299,941 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	9 Months Ended
	Sep. 30, 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 nine 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 3,947 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 nine months of 2018 and 2017, respectively. Accumulated Other Comprehensive Loss The following table presents the cumulative balances of the components of accumulated other comprehensive loss, net of deferred taxes of $1.35 million and $491,000 as of September 30, 2018 and December 31, 2017, respectively. September 30, December 31, (Dollars in thousands) 2018 2017 Net unrealized (losses) gains on securities $ (2,875) $ 638 Net unrecognized gains on cash flow hedges 306 124 Net unrecognized losses on defined benefit plan (2,612) (2,649) Total accumulated other comprehensive loss $ (5,181) $ (1,887) Earnings Per Share (EPS) The components of the Corporation’s EPS calculations are as follows: Three Months Ended September 30, (Dollars in thousands) 2018 2017 Net income $ 5,101 $ 3,017 Weighted average number of shares used in earnings per share—basic 3,503,371 3,487,170 Effect of dilutive securities — — Weighted average number of shares used in earnings per share—assuming dilution 3,503,371 3,487,170 Nine Months Ended September 30, (Dollars in thousands) 2018 2017 Net income $ 14,063 $ 9,887 Weighted average number of shares used in earnings per share—basic 3,502,550 3,485,725 Effect of dilutive securities—stock option awards — 105 Weighted average number of shares used in earnings per share—assuming dilution 3,502,550 3,485,830 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 and nine months ended September 30, 2017. There were no stock options outstanding during the first nine months of 2018.

Employee Benefit Plans

Employee Benefit Plans	9 Months Ended
	Sep. 30, 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 September 30, Nine Months Ended September 30, (Dollars in thousands) 2018 2017 2018 2017 Components of net periodic benefit cost: Service cost, included in salaries and employee benefits $ 309 $ 274 $ 923 $ 840 Other components of net periodic benefit cost: Interest cost 138 138 384 414 Expected return on plan assets (373) (280) (1,039) (854) Amortization of prior service credit (16) (15) (46) (45) Recognized net actuarial losses 32 41 93 115 Other components of net periodic benefit cost, included in other noninterest income (219) (116) (608) (370) Net periodic benefit cost $ 90 $ 158 $ 315 $ 470

Fair Value of Assets and Liabil

Fair Value of Assets and Liabilities	9 Months Ended
	Sep. 30, 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 September 30, 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 - 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 - 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. September 30, 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 $ — $ 16,189 $ — $ 16,189 Mortgage-backed securities — 103,730 — 103,730 Obligations of states and political subdivisions — 97,195 — 97,195 Total securities available for sale — 217,114 — 217,114 Loans held for sale — 45,979 — 45,979 Derivative asset - IRLC — 939 — 939 Derivative asset - interest rate swaps on loans — 2,633 — 2,633 Derivative asset - cash flow hedges — 412 — 412 Total assets $ — $ 267,077 $ — $ 267,077 Liabilities: Derivative liability - interest rate swaps on loans $ — $ 2,633 $ — $ 2,633 Total liabilities $ — $ 2,633 $ — $ 2,633 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. The Corporation measures impairment either based on the fair value of the loan using the loan’s obtainable market price or the fair value of the collateral if the loan is collateral dependent, or using the present value of expected future cash flows discounted at the loan’s effective interest rate, which is not a fair value measurement. The Corporation maintains a valuation allowance to the extent that this measure of the impaired loan is less than the recorded investment in the loan. When an impaired loan is measured at fair value based solely on observable market prices or a current appraisal without further adjustment for unobservable inputs, the Corporation records the impaired loan as a nonrecurring fair value measurement classified as Level 2. However, if based on management’s review, additional discounts to observed market prices or appraisals are required or if observable inputs are not available, the Corporation records the impaired loan as a nonrecurring fair value measurement classified as Level 3. Impaired loans that are measured based on expected future cash flows discounted at the loan’s effective interest rate rather than the market rate of interest, are not recorded at fair value and are 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 a nonrecurring fair value measurement classified as Level 3. The following table presents the balances of assets measured at fair value on a nonrecurring basis. September 30, 2018 Fair Value Measurements Using Assets at Fair (Dollars in thousands) Level 1 Level 2 Level 3 Value Impaired loans, net $ — $ — $ 648 $ 648 Other real estate owned, net — — 188 188 Total $ — $ — $ 836 $ 836 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 nonrecurring basis: Fair Value Measurements at September 30, 2018 (Dollars in thousands) Fair Value Valuation Technique(s) Unobservable Inputs Range of Inputs Impaired loans, net $ 648 Appraisals Discount to reflect current market conditions and estimated selling costs 18% - 38% Other real estate owned, net 188 Appraisals Discount to reflect current market conditions and estimated selling costs 28%-69% Total $ 836 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 Consolidated Balance Sheets at fair value. Carrying Fair Value Measurements at September 30, 2018 Using Total Fair (Dollars in thousands) Value Level 1 Level 2 Level 3 Value Financial assets: Cash and short-term investments $ 109,149 $ 109,149 $ — $ — $ 109,149 Securities available for sale 217,114 — 217,114 — 217,114 Loans, net 1,002,423 — — 985,257 985,257 Loans held for sale 45,979 — 45,979 — 45,979 Derivative asset - IRLC 939 — 939 — 939 Derivative asset - interest rate swaps on loans 2,633 — 2,633 — 2,633 Derivative asset - cash flow hedges 412 — 412 — 412 Bank-owned life insurance 15,869 — 15,869 — 15,869 Accrued interest receivable 7,354 7,354 — — 7,354 Financial liabilities: Demand deposits $ 812,213 $ 812,213 $ — $ — $ 812,213 Time deposits 346,242 — 344,065 — 344,065 Borrowings 159,796 — 151,334 — 151,334 Derivative liability - interest rate swaps on loans 2,633 — 2,633 — 2,633 Accrued interest payable 916 916 — — 916 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

Business Segments	9 Months Ended
	Sep. 30, 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 third-party service providers 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 September 30, 2018 Retail Mortgage Consumer (Dollars in thousands) Banking Banking Finance Other Eliminations Consolidated Revenues: Interest income $ 14,350 $ 602 $ 10,650 $ 4 $ (1,915) $ 23,691 Gains on sales of loans — 1,752 — — — 1,752 Other noninterest income 2,971 1,246 142 516 — 4,875 Total operating income 17,321 3,600 10,792 520 (1,915) 30,318 Expenses: Provision for loan losses — — 2,400 — — 2,400 Interest expense 1,727 282 2,418 291 (1,915) 2,803 Salaries and employee benefits 6,851 1,406 2,160 550 — 10,967 Other noninterest expenses 4,958 1,248 1,381 120 — 7,707 Total operating expenses 13,536 2,936 8,359 961 (1,915) 23,877 Income (loss) before income taxes 3,785 664 2,433 (441) — 6,441 Income tax expense (benefit) 627 174 664 (125) — 1,340 Net income (loss) $ 3,158 $ 490 $ 1,769 $ (316) $ — $ 5,101 Total assets $ 1,329,507 $ 60,592 $ 300,389 $ 4,396 $ (195,280) $ 1,499,604 Goodwill $ 3,702 $ — $ 10,723 $ — $ — $ 14,425 Capital expenditures $ 692 $ 52 $ 12 $ 3 $ — $ 759 Three Months Ended September 30, 2017 Retail Mortgage Consumer (Dollars in thousands) Banking Banking Finance Other Eliminations Consolidated Revenues: Interest income $ 12,561 $ 460 $ 11,337 $ — $ (1,655) $ 22,703 Gains on sales of loans — 2,156 — — — 2,156 Other noninterest income 2,809 1,202 213 462 — 4,686 Total operating income 15,370 3,818 11,550 462 (1,655) 29,545 Expenses: Provision for loan losses — — 4,435 — — 4,435 Interest expense 1,539 176 2,131 300 (1,655) 2,491 Salaries and employee benefits 6,601 1,585 2,209 459 — 10,854 Other noninterest expenses 4,479 1,303 1,593 142 — 7,517 Total operating expenses 12,619 3,064 10,368 901 (1,655) 25,297 Income (loss) before income taxes 2,751 754 1,182 (439) — 4,248 Income tax expense (benefit) 650 300 469 (188) — 1,231 Net income (loss) $ 2,101 $ 454 $ 713 $ (251) $ — $ 3,017 Total assets $ 1,318,835 $ 64,451 $ 296,835 $ 5,870 $ (201,345) $ 1,484,646 Goodwill $ 3,702 $ — $ 10,723 $ — $ — $ 14,425 Capital expenditures $ 1,042 $ 46 $ 16 $ 3 $ — $ 1,107 Nine Months Ended September 30, 2018 Retail Mortgage Consumer (Dollars in thousands) Banking Banking Finance Other Eliminations Consolidated Revenues: Interest income $ 40,719 $ 1,468 $ 32,230 $ 4 $ (5,335) $ 69,086 Gains on sales of loans — 6,399 — — — 6,399 Other noninterest income 8,486 3,349 552 1,528 — 13,915 Total operating income 49,205 11,216 32,782 1,532 (5,335) 89,400 Expenses: Provision for loan losses — — 7,700 — — 7,700 Interest expense 4,975 642 6,900 861 (5,335) 8,043 Salaries and employee benefits 20,091 4,409 6,653 1,620 — 32,773 Other noninterest expenses 14,776 3,841 4,076 508 — 23,201 Total operating expenses 39,842 8,892 25,329 2,989 (5,335) 71,717 Income (loss) before income taxes 9,363 2,324 7,453 (1,457) — 17,683 Income tax expense (benefit) 1,449 620 2,030 (479) — 3,620 Net income (loss) $ 7,914 $ 1,704 $ 5,423 $ (978) $ — $ 14,063 Total assets $ 1,329,507 $ 60,592 $ 300,389 $ 4,396 $ (195,280) $ 1,499,604 Goodwill $ 3,702 $ — $ 10,723 $ — $ — $ 14,425 Capital expenditures $ 2,286 $ 111 $ 47 $ 3 $ — $ 2,447 Nine Months Ended September 30, 2017 Retail Mortgage Consumer (Dollars in thousands) Banking Banking Finance Other Eliminations Consolidated Revenues: Interest income $ 36,898 $ 1,207 $ 33,740 $ — $ (4,698) $ 67,147 Gains on sales of loans — 6,718 — — — 6,718 Other noninterest income 8,325 3,509 644 1,335 — 13,813 Total operating income 45,223 11,434 34,384 1,335 (4,698) 87,678 Expenses: Provision for loan losses 200 — 11,735 — — 11,935 Interest expense 4,499 407 6,036 862 (4,698) 7,106 Salaries and employee benefits 19,511 4,872 7,016 1,439 — 32,838 Other noninterest expenses 13,356 3,901 4,151 504 — 21,912 Total operating expenses 37,566 9,180 28,938 2,805 (4,698) 73,791 Income (loss) before income taxes 7,657 2,254 5,446 (1,470) — 13,887 Income tax expense (benefit) 1,635 896 2,155 (686) — 4,000 Net income (loss) $ 6,022 $ 1,358 $ 3,291 $ (784) $ — $ 9,887 Total assets $ 1,318,835 $ 64,451 $ 296,835 $ 5,870 $ (201,345) $ 1,484,646 Goodwill $ 3,702 $ — $ 10,723 $ — $ — $ 14,425 Capital expenditures $ 1,981 $ 328 $ 81 $ 14 $ — $ 2,404 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 at 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 Contingent Liab

Commitments and Contingent Liabilities	9 Months Ended
	Sep. 30, 2018
Commitments and Contingent Liabilities
Commitments and Contingent Liabilities	NOTE 9: Commitments and Contingent Liabilities The Corporation enters into commitments to extend credit in the normal course of business to meet the financing needs of its customers, including loan commitments and standby letters of credit. These instruments involve elements of credit and interest rate risk in excess of the amounts recorded on the Consolidated Balance Sheets. The Corporation’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit written is represented by the contractual amount of these instruments. Loan commitments are agreements to extend credit to a customer provided that there are no violations of the terms of the contract prior to funding. Commitments have fixed expiration dates or other termination clauses and may require payment of a fee by the customer. Because many of the commitments may expire without being completely drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The amount of loan commitments was $244.47 million at September 30, 2018 and $224.50 million at December 31, 2017. Standby letters of credit are written conditional commitments issued by the Bank to guarantee the performance of a customer to a third party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to customers. The total contract amount of standby letters of credit, whose contract amounts represent credit risk, was $15.44 million at September 30, 2018 and $15.46 million at December 31, 2017. 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. The following table presents the changes in the allowance for indemnification losses for the periods presented: Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2018 2017 2018 2017 Allowance, beginning of period $ 2,542 $ 2,391 $ 2,489 $ 2,303 Provision for indemnification losses — 52 53 140 Payments — — — — Allowance, end of period $ 2,542 $ 2,443 $ 2,542 $ 2,443

Derivative Financial Instrument

Derivative Financial Instruments	9 Months Ended
	Sep. 30, 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 IRLCs. 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. Interest rate swaps designated as cash flow hedges are expected to be highly effective in offsetting the effect of changes in interest rates on the amount of the hedged interest payments, and the Corporation assesses the effectiveness of each hedging relationship quarterly. As of September 30, 2018, the Corporation has designated cash flow hedges to manage its exposure to variability in cash flows on certain variable rate borrowings for periods that end between December 2019 and September 2020. 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 in interest expense in the Consolidated Statements of Income as accrued under the terms of the agreements. The derivatives’ unrealized gains or losses are recorded as a component of other comprehensive income and reclassified into earnings in the same period(s) during which the hedged transactions affect earnings. The Corporation does not expect any unrealized gains related to cash flow hedges to be reclassified into earnings in the next twelve months. 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 Sheets. 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 September 30, 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 Sheets. The following tables summarize key elements of the Corporation’s derivative instruments: September 30, 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 $ 412 $ — $ — Not designated as hedges: Customer-related interest rate contracts: Matched interest rate swaps with borrower 46,136 8 34 2,599 — Matched interest rate swaps with counterparty 46,136 8 2,599 34 — Other contracts: IRLCs 120,659 538 939 — — 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: IRLCs 99,140 440 528 — — 1 Notional amounts are not recorded in the Consolidated Balance Sheets 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	9 Months Ended
	Sep. 30, 2018
Other Noninterest Expenses
Other Noninterest Expenses	NOTE 11: Other Noninterest Expenses The following table presents the significant components in the Consolidated Statements of Income line “Noninterest Expenses-Other.” Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2018 2017 2018 2017 Data processing service and maintenance contracts $ 1,879 $ 1,817 $ 5,524 $ 4,915 Professional fees 634 529 2,152 1,810 Marketing and advertising expenses 379 361 1,222 1,164 Telecommunication expenses 336 329 1,015 975 Travel and educational expenses 257 268 928 845 All other noninterest expenses 2,015 2,305 6,098 6,447 Total other noninterest expenses $ 5,500 $ 5,609 $ 16,939 $ 16,156

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 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 liabilities 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 (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 third-party service providers. C&F Insurance Services, Inc. was organized in July 1999 for the primary purpose of owning an equity interest in an independent insurance agency that operates in Virginia and North Carolina. CVB Title Services, Inc. was organized for the primary purpose of owning an equity interest in a full service title and settlement agency. 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 (OREO), 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 Sheets. The Corporation’s derivative financial instruments 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 and are designated 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 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 third quarter of 2018 and the first nine months of 2018 was $316,000 ($235,000 after tax) and $956,000 ($710,000 after tax), respectively, for restricted stock granted during 2013 through 2018. As of September 30, 2018, there was $2.65 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 nine 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 11,610 58.30 Vested (14,625) 40.47 Forfeited (1,960) 43.26 Unvested, September 30, 2018 132,905 45.14 2017 Weighted- Average Grant Date Shares Fair Value Unvested, December 31, 2016 141,755 $ 39.77 Granted 15,725 45.46 Vested (17,260) 35.40 Forfeited (1,690) 43.16 Unvested, September 30, 2017 138,530 40.91
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 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 Corporation 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 or quarter 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 began disclosing the fair value of these financial instruments using an exit price notion rather than an entry price notion in the first quarter of 2018 (see “Note 7: Fair Value of Assets and Liabilities”). On January 1, 2018, the Corporation 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, income of $116,000 and $370,000 was reclassified from “Salaries and employee benefits” to “Noninterest income – Other” on the Consolidated Statements of Income for the three and nine months ended September 30, 2017, respectively. In the third quarter of 2018, the Corporation adopted ASU 2017-12, “ Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities .” ASU 2017-12 improves the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements by expanding the types of risk management activities to which hedge accounting can be applied and by simplifying its application. As a result of the adoption of ASU 2017-12, any ineffectiveness in qualifying and designated cash flow hedging relationships will be recorded in other comprehensive income rather than in earnings. The adoption of ASU 2017-12 did not have a significant effect on the financial statements, and most of its provisions are effective for the Corporation on a prospective basis. In the third quarter of 2018, the Corporation adopted ASU 2017-08, “ Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities, ” which requires all entities that hold investments in callable debt securities at a premium to amortize the premium to the earliest call date. The amendments in ASU 2017-08 were applied on a modified retrospective basis as of January 1, 2018 and did not have a significant effect on the financial statements.
Recent Significant Accounting Pronouncements	Recent Significant Accounting Pronouncements: In February 2016, the Financial Accounting Standards Board (FASB) issued ASU 2016-02, “ Leases (Topic 842) .” Subsequently, this ASU was amended when the FASB issued other updates, including ASU 2018-10, “Codification Improvements to Topic 842, Leases” and ASU 2018-11, “Leases (Topic 842)” (collectively, ASC 842). Among other things in the amendments in ASC 842, 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 ASC 842 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 by either applying the new guidance as of the beginning of the earliest comparative period presented in the financial statements or by electing an optional transition method that will apply the new guidance as of the beginning of the period of adoption. Under the optional transition method, prior periods will continue to be reported under current guidance. The modified retrospective approach would not require any transition accounting for leases that expired before application date under either method. Lessees and lessors may not apply a full retrospective transition approach. The Corporation has completed an inventory of its leases, which comprise primarily leases of real estate and office equipment in which the Corporation is the lessee, and all of which are accounted for as operating leases under current guidance. The Corporation will adopt ASC 842 effective January 1, 2019 using the optional transition method. Under a practical expedient available for transition, the classification of leases will remain the same upon adoption of ASC 842. Upon transition, the Corporation will record a lease liability of approximately $3 million for its remaining payment obligations as of January 1, 2019 for leases in effect at that time and a corresponding right of use asset. This estimate of the required lease liability is based on leases in effect as of September 30, 2018. The measurement of the lease liability will continue to be refined as the implementation process is completed. The Corporation expects to finalize its controls and procedures for accounting for leases under ASC 842 in the fourth quarter of 2018. Adoption of ASC 842 is not expected to change the pattern of recognition of expense for the Corporation’s leases in effect as of September 30, 2018. 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 amendments will be applied on a modified retrospective basis, with the cumulative effect of adopting the new standard being recorded as an adjustment to opening retained earnings in the period of adoption. 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 consolidated 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 consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement.” These amendments modify the disclosure requirements in Topic 820 to add disclosures regarding changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements and the narrative description of measurement uncertainty. Certain disclosure requirements in Topic 820 are also removed or modified. The amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Certain of the amendments are to be applied prospectively while others are to be applied retrospectively. Early adoption is permitted. The Corporation does not expect the adoption of ASU 2018-13 to have a material effect on its consolidated financial statements. In August 2018, the FASB issued ASU 2018-14, “Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans.” These amendments modify the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. Certain disclosure requirements have been deleted while the following disclosure requirements have been added: the weighted-average interest crediting rates for cash balance plans and other plans with promised interest crediting rates and an explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period. The amendments also clarify the disclosure requirements regarding the projected benefit obligation (PBO) and fair value of plan assets for plans with PBOs in excess of plan assets and the accumulated benefit obligation (ABO) and fair value of plan assets for plans with ABOs in excess of plan assets. The amendments are effective for fiscal years ending after December 15, 2020. Early adoption is permitted. The Corporation does not expect the adoption of ASU 2018-14 to have a material effect on its consolidated financial statements. Other accounting standards that have been issued by the FASB or other standards-setting bodies are not currently expected to have a material effect on the Corporation’s financial position, results of operations or cash flows.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 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 11,610 58.30 Vested (14,625) 40.47 Forfeited (1,960) 43.26 Unvested, September 30, 2018 132,905 45.14 2017 Weighted- Average Grant Date Shares Fair Value Unvested, December 31, 2016 141,755 $ 39.77 Granted 15,725 45.46 Vested (17,260) 35.40 Forfeited (1,690) 43.16 Unvested, September 30, 2017 138,530 40.91

Securities (Tables)

Securities (Tables)	9 Months Ended
	Sep. 30, 2018
Securities
Summary of available for sale securities	September 30, 2018 Gross Gross Amortized Unrealized Unrealized (Dollars in thousands) Cost Gains Losses Fair Value U.S. government agencies and corporations $ 17,011 $ — $ (822) $ 16,189 Mortgage-backed securities 106,940 29 (3,239) 103,730 Obligations of states and political subdivisions 96,802 831 (438) 97,195 $ 220,753 $ 860 $ (4,499) $ 217,114 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	September 30, 2018 Amortized (Dollars in thousands) Cost Fair Value Due in one year or less $ 53,133 $ 52,987 Due after one year through five years 150,514 147,076 Due after five years through ten years 11,769 11,711 Due after ten years 5,337 5,340 $ 220,753 $ 217,114
Schedule of gross realized gains and losses and the proceeds	Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2018 2017 2018 2017 Realized gains and losses from calls of securities: Gross realized gains $ 5 $ 2 $ 10 $ 14 Gross realized losses — — (1) (4) Net realized gains $ 5 $ 2 $ 9 $ 10 Proceeds from maturities, calls and paydowns of securities $ 12,865 $ 12,472 $ 35,267 $ 33,960
Schedule of securities in an unrealized loss position	Securities in an unrealized loss position at September 30, 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 $ 749 $ 1 $ 15,440 $ 821 $ 16,189 $ 822 Mortgage-backed securities 53,707 1,290 44,876 1,949 98,583 3,239 Obligations of states and political subdivisions 27,814 182 12,944 256 40,758 438 Total temporarily impaired securities $ 82,270 $ 1,473 $ 73,260 $ 3,026 $ 155,530 $ 4,499 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)	9 Months Ended
	Sep. 30, 2018
Loans
Summary of major classifications of loans	September 30, December 31, (Dollars in thousands) 2018 2017 Real estate – residential mortgage $ 184,362 $ 184,863 Real estate – construction 1 55,650 44,782 Commercial, financial and agricultural 2 426,310 437,884 Equity lines 55,655 55,237 Consumer 15,464 13,018 Consumer finance 299,941 292,004 1,037,382 1,027,788 Less allowance for loan losses (34,959) (35,726) Loans, net $ 1,002,423 $ 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	September 30, 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 $ 10,253 $ 40,140 $ 50,393 $ 12,856 $ 45,083 $ 57,939 Carrying amount Real estate – residential mortgage $ 439 $ 9,166 $ 9,605 $ 492 $ 10,855 $ 11,347 Commercial, financial and agricultural 1 1,593 19,778 21,371 2,472 22,305 24,777 Equity lines 116 9,216 9,332 139 9,621 9,760 Consumer — 6 6 — 12 12 Total acquired loans $ 2,148 $ 38,166 $ 40,314 $ 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	September 30, December 31, (Dollars in thousands) 2018 2017 Real estate – residential mortgage $ 611 $ 830 Commercial, financial and agricultural: Commercial real estate lending 1,206 3,796 Commercial business lending 24 34 Equity lines 912 651 Consumer — — Consumer finance 1,025 764 Total loans on nonaccrual status $ 3,778 $ 6,075
Schedule of past due status of loans	The past due status of loans as of September 30, 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 $ 405 $ — $ 294 $ 699 $ 439 $ 183,224 $ 184,362 $ 194 Real estate – construction: Construction lending — — — — — 44,756 44,756 — Consumer lot lending — — — — — 10,894 10,894 — Commercial, financial and agricultural: Commercial real estate lending 65 1,397 315 1,777 1,593 302,413 305,783 315 Land acquisition and development lending — — — — — 34,035 34,035 — Builder line lending 247 — — 247 — 27,593 27,840 — Commercial business lending — — 24 24 — 58,628 58,652 — Equity lines 250 186 72 508 116 55,031 55,655 72 Consumer 154 — — 154 — 15,310 15,464 — Consumer finance 9,892 1,974 1,025 12,891 — 287,050 299,941 — Total $ 11,013 $ 3,557 $ 1,730 $ 16,300 $ 2,148 $ 1,018,934 $ 1,037,382 $ 581 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 $78,000. The table above includes the following: · nonaccrual loans that are current of $942,000, 30-59 days past due of $218,000, 60-89 days past due of $1.39 million and 90+ days past due of $1.23 million. · performing loans purchased in the acquisition of CVB that are current of $37.97 million, 30-59 days past due of $120,000 and 90+ days past due of $72,000. 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 $4.71 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 September 30, 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 Real estate – residential mortgage – interest rate concession — $ — $ — 2 $ 365 $ 365 Consumer – interest rate concession 1 5 5 — — — Total 1 $ 5 $ 5 2 $ 365 $ 365 Nine Months Ended September 30, 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 Real estate – residential mortgage – interest reduction — $ — $ — 2 $ 365 $ 365 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 — — — 4 2,154 2,154 Consumer – interest rate concession 1 5 5 — — — Total 1 $ 5 $ 5 9 $ 7,165 $ 7,165
Schedule of impaired loans	Impaired loans, which included TDRs of $6.96 million, and the related allowance at September 30, 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 $ 3,020 $ 1,153 $ 1,768 $ 99 $ 3,010 $ 109 Commercial, financial and agricultural: Commercial real estate lending 4,245 1,639 2,335 674 4,845 108 Commercial business lending 33 25 — — 26 — Equity lines 365 31 327 326 360 1 Consumer 5 — 5 5 5 — Total $ 7,668 $ 2,848 $ 4,435 $ 1,104 $ 8,246 $ 218 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	Nine Months Ended September 30, (Dollars in thousands) 2018 2017 Accretable yield, balance at beginning of period $ 7,304 $ 8,637 Accretion (2,892) (2,176) Reclassification of nonaccretable difference due to improvement in expected cash flows 1,410 1,022 Other changes, net (324) 306 Accretable yield, balance at end of period $ 5,498 $ 7,789

Allowance for Loan Losses (Tabl

Allowance for Loan Losses (Tables)	9 Months Ended
	Sep. 30, 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 nine months ended September 30, 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 (122) 174 (625) 450 123 7,700 7,700 Loans charged off — — (2) — (248) (11,743) (11,993) Recoveries of loans previously charged off 52 — 46 — 174 3,254 3,526 Balance at September 30, 2018 $ 2,301 $ 779 $ 6,897 $ 1,138 $ 280 $ 23,564 $ 34,959 The following table presents the changes in the allowance for loan losses by major classification during the nine months ended September 30, 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 (69) (278) 500 23 24 11,735 11,935 Loans charged off (154) — (273) (20) (224) (15,464) (16,135) Recoveries of loans previously charged off 59 — 18 2 143 3,247 3,469 Balance at September 30, 2017 $ 2,395 $ 538 $ 7,638 $ 690 $ 204 $ 24,870 $ 36,335
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 September 30, 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 September 30, 2018 $ 2,301 $ 779 $ 6,897 $ 1,138 $ 280 $ 23,564 $ 34,959 Ending balance: individually evaluated for impairment $ 99 $ — $ 674 $ 326 $ 5 $ — $ 1,104 Ending balance: collectively evaluated for impairment $ 2,202 $ 779 $ 6,223 $ 812 $ 275 $ 23,564 $ 33,855 Ending balance: acquired loans - PCI $ — $ — $ — $ — $ — $ — $ — Loans: Ending balance at September 30, 2018 $ 184,362 $ 55,650 $ 426,310 $ 55,655 $ 15,464 $ 299,941 $ 1,037,382 Ending balance: individually evaluated for impairment $ 2,921 $ — $ 3,999 $ 358 $ 5 $ — $ 7,283 Ending balance: collectively evaluated for impairment $ 181,002 $ 55,650 $ 420,718 $ 55,181 $ 15,459 $ 299,941 $ 1,027,951 Ending balance: acquired loans - PCI $ 439 $ — $ 1,593 $ 116 $ — $ — $ 2,148 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 September 30, 2018 were as follows: Special Substandard (Dollars in thousands) Pass Mention Substandard Nonaccrual Total 1 Real estate – residential mortgage $ 180,854 $ 1,223 $ 1,674 $ 611 $ 184,362 Real estate – construction: Construction lending 44,756 — — — 44,756 Consumer lot lending 10,044 850 — — 10,894 Commercial, financial and agricultural: Commercial real estate lending 298,883 5,007 687 1,206 305,783 Land acquisition and development lending 24,040 9,995 — — 34,035 Builder line lending 27,840 — — — 27,840 Commercial business lending 58,191 437 — 24 58,652 Equity lines 54,257 393 93 912 55,655 Consumer 15,457 1 6 — 15,464 $ 714,322 $ 17,906 $ 2,460 $ 2,753 $ 737,441 1 At September 30, 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 $38.49 million pass rated, $1.20 million special mention, $528,000 substandard and $101,000 substandard nonaccrual. Non- (Dollars in thousands) Performing Performing Total Consumer finance $ 298,916 $ 1,025 $ 299,941 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 C_2

Shareholders’ Equity, Other Comprehensive Income and Earnings Per Share (Tables)	9 Months Ended
	Sep. 30, 2018
Shareholders’ Equity, Other Comprehensive Income and Earnings Per Share
Schedule of the components of accumulated other comprehensive loss, net of deferred taxes	September 30, December 31, (Dollars in thousands) 2018 2017 Net unrealized (losses) gains on securities $ (2,875) $ 638 Net unrecognized gains on cash flow hedges 306 124 Net unrecognized losses on defined benefit plan (2,612) (2,649) Total accumulated other comprehensive loss $ (5,181) $ (1,887)
Schedule of components earnings per share calculations	Three Months Ended September 30, (Dollars in thousands) 2018 2017 Net income $ 5,101 $ 3,017 Weighted average number of shares used in earnings per share—basic 3,503,371 3,487,170 Effect of dilutive securities — — Weighted average number of shares used in earnings per share—assuming dilution 3,503,371 3,487,170 Nine Months Ended September 30, (Dollars in thousands) 2018 2017 Net income $ 14,063 $ 9,887 Weighted average number of shares used in earnings per share—basic 3,502,550 3,485,725 Effect of dilutive securities—stock option awards — 105 Weighted average number of shares used in earnings per share—assuming dilution 3,502,550 3,485,830

Employee Benefit Plans (Tables)

Employee Benefit Plans (Tables)	9 Months Ended
	Sep. 30, 2018
Employee Benefit Plans
Schedule of net periodic benefit costs	Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2018 2017 2018 2017 Components of net periodic benefit cost: Service cost, included in salaries and employee benefits $ 309 $ 274 $ 923 $ 840 Other components of net periodic benefit cost: Interest cost 138 138 384 414 Expected return on plan assets (373) (280) (1,039) (854) Amortization of prior service credit (16) (15) (46) (45) Recognized net actuarial losses 32 41 93 115 Other components of net periodic benefit cost, included in other noninterest income (219) (116) (608) (370) Net periodic benefit cost $ 90 $ 158 $ 315 $ 470

Fair Value of Assets and Liab_2

Fair Value of Assets and Liabilities (Tables)	9 Months Ended
	Sep. 30, 2018
Fair Value of Assets and Liabilities
Schedule of financial assets measured at fair value on a recurring basis	September 30, 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 $ — $ 16,189 $ — $ 16,189 Mortgage-backed securities — 103,730 — 103,730 Obligations of states and political subdivisions — 97,195 — 97,195 Total securities available for sale — 217,114 — 217,114 Loans held for sale — 45,979 — 45,979 Derivative asset - IRLC — 939 — 939 Derivative asset - interest rate swaps on loans — 2,633 — 2,633 Derivative asset - cash flow hedges — 412 — 412 Total assets $ — $ 267,077 $ — $ 267,077 Liabilities: Derivative liability - interest rate swaps on loans $ — $ 2,633 $ — $ 2,633 Total liabilities $ — $ 2,633 $ — $ 2,633 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	September 30, 2018 Fair Value Measurements Using Assets at Fair (Dollars in thousands) Level 1 Level 2 Level 3 Value Impaired loans, net $ — $ — $ 648 $ 648 Other real estate owned, net — — 188 188 Total $ — $ — $ 836 $ 836 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 September 30, 2018 (Dollars in thousands) Fair Value Valuation Technique(s) Unobservable Inputs Range of Inputs Impaired loans, net $ 648 Appraisals Discount to reflect current market conditions and estimated selling costs 18% - 38% Other real estate owned, net 188 Appraisals Discount to reflect current market conditions and estimated selling costs 28%-69% Total $ 836
Schedule of carrying amounts and estimated fair values of financial instruments	Carrying Fair Value Measurements at September 30, 2018 Using Total Fair (Dollars in thousands) Value Level 1 Level 2 Level 3 Value Financial assets: Cash and short-term investments $ 109,149 $ 109,149 $ — $ — $ 109,149 Securities available for sale 217,114 — 217,114 — 217,114 Loans, net 1,002,423 — — 985,257 985,257 Loans held for sale 45,979 — 45,979 — 45,979 Derivative asset - IRLC 939 — 939 — 939 Derivative asset - interest rate swaps on loans 2,633 — 2,633 — 2,633 Derivative asset - cash flow hedges 412 — 412 — 412 Bank-owned life insurance 15,869 — 15,869 — 15,869 Accrued interest receivable 7,354 7,354 — — 7,354 Financial liabilities: Demand deposits $ 812,213 $ 812,213 $ — $ — $ 812,213 Time deposits 346,242 — 344,065 — 344,065 Borrowings 159,796 — 151,334 — 151,334 Derivative liability - interest rate swaps on loans 2,633 — 2,633 — 2,633 Accrued interest payable 916 916 — — 916 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)	9 Months Ended
	Sep. 30, 2018
Business Segments
Schedule of segment reporting information, by segment	Three Months Ended September 30, 2018 Retail Mortgage Consumer (Dollars in thousands) Banking Banking Finance Other Eliminations Consolidated Revenues: Interest income $ 14,350 $ 602 $ 10,650 $ 4 $ (1,915) $ 23,691 Gains on sales of loans — 1,752 — — — 1,752 Other noninterest income 2,971 1,246 142 516 — 4,875 Total operating income 17,321 3,600 10,792 520 (1,915) 30,318 Expenses: Provision for loan losses — — 2,400 — — 2,400 Interest expense 1,727 282 2,418 291 (1,915) 2,803 Salaries and employee benefits 6,851 1,406 2,160 550 — 10,967 Other noninterest expenses 4,958 1,248 1,381 120 — 7,707 Total operating expenses 13,536 2,936 8,359 961 (1,915) 23,877 Income (loss) before income taxes 3,785 664 2,433 (441) — 6,441 Income tax expense (benefit) 627 174 664 (125) — 1,340 Net income (loss) $ 3,158 $ 490 $ 1,769 $ (316) $ — $ 5,101 Total assets $ 1,329,507 $ 60,592 $ 300,389 $ 4,396 $ (195,280) $ 1,499,604 Goodwill $ 3,702 $ — $ 10,723 $ — $ — $ 14,425 Capital expenditures $ 692 $ 52 $ 12 $ 3 $ — $ 759 Three Months Ended September 30, 2017 Retail Mortgage Consumer (Dollars in thousands) Banking Banking Finance Other Eliminations Consolidated Revenues: Interest income $ 12,561 $ 460 $ 11,337 $ — $ (1,655) $ 22,703 Gains on sales of loans — 2,156 — — — 2,156 Other noninterest income 2,809 1,202 213 462 — 4,686 Total operating income 15,370 3,818 11,550 462 (1,655) 29,545 Expenses: Provision for loan losses — — 4,435 — — 4,435 Interest expense 1,539 176 2,131 300 (1,655) 2,491 Salaries and employee benefits 6,601 1,585 2,209 459 — 10,854 Other noninterest expenses 4,479 1,303 1,593 142 — 7,517 Total operating expenses 12,619 3,064 10,368 901 (1,655) 25,297 Income (loss) before income taxes 2,751 754 1,182 (439) — 4,248 Income tax expense (benefit) 650 300 469 (188) — 1,231 Net income (loss) $ 2,101 $ 454 $ 713 $ (251) $ — $ 3,017 Total assets $ 1,318,835 $ 64,451 $ 296,835 $ 5,870 $ (201,345) $ 1,484,646 Goodwill $ 3,702 $ — $ 10,723 $ — $ — $ 14,425 Capital expenditures $ 1,042 $ 46 $ 16 $ 3 $ — $ 1,107 Nine Months Ended September 30, 2018 Retail Mortgage Consumer (Dollars in thousands) Banking Banking Finance Other Eliminations Consolidated Revenues: Interest income $ 40,719 $ 1,468 $ 32,230 $ 4 $ (5,335) $ 69,086 Gains on sales of loans — 6,399 — — — 6,399 Other noninterest income 8,486 3,349 552 1,528 — 13,915 Total operating income 49,205 11,216 32,782 1,532 (5,335) 89,400 Expenses: Provision for loan losses — — 7,700 — — 7,700 Interest expense 4,975 642 6,900 861 (5,335) 8,043 Salaries and employee benefits 20,091 4,409 6,653 1,620 — 32,773 Other noninterest expenses 14,776 3,841 4,076 508 — 23,201 Total operating expenses 39,842 8,892 25,329 2,989 (5,335) 71,717 Income (loss) before income taxes 9,363 2,324 7,453 (1,457) — 17,683 Income tax expense (benefit) 1,449 620 2,030 (479) — 3,620 Net income (loss) $ 7,914 $ 1,704 $ 5,423 $ (978) $ — $ 14,063 Total assets $ 1,329,507 $ 60,592 $ 300,389 $ 4,396 $ (195,280) $ 1,499,604 Goodwill $ 3,702 $ — $ 10,723 $ — $ — $ 14,425 Capital expenditures $ 2,286 $ 111 $ 47 $ 3 $ — $ 2,447 Nine Months Ended September 30, 2017 Retail Mortgage Consumer (Dollars in thousands) Banking Banking Finance Other Eliminations Consolidated Revenues: Interest income $ 36,898 $ 1,207 $ 33,740 $ — $ (4,698) $ 67,147 Gains on sales of loans — 6,718 — — — 6,718 Other noninterest income 8,325 3,509 644 1,335 — 13,813 Total operating income 45,223 11,434 34,384 1,335 (4,698) 87,678 Expenses: Provision for loan losses 200 — 11,735 — — 11,935 Interest expense 4,499 407 6,036 862 (4,698) 7,106 Salaries and employee benefits 19,511 4,872 7,016 1,439 — 32,838 Other noninterest expenses 13,356 3,901 4,151 504 — 21,912 Total operating expenses 37,566 9,180 28,938 2,805 (4,698) 73,791 Income (loss) before income taxes 7,657 2,254 5,446 (1,470) — 13,887 Income tax expense (benefit) 1,635 896 2,155 (686) — 4,000 Net income (loss) $ 6,022 $ 1,358 $ 3,291 $ (784) $ — $ 9,887 Total assets $ 1,318,835 $ 64,451 $ 296,835 $ 5,870 $ (201,345) $ 1,484,646 Goodwill $ 3,702 $ — $ 10,723 $ — $ — $ 14,425 Capital expenditures $ 1,981 $ 328 $ 81 $ 14 $ — $ 2,404

Commitments and Contingent Li_2

Commitments and Contingent Liabilities (Tables)	9 Months Ended
	Sep. 30, 2018
Commitments and Contingent Liabilities
Schedule of allowance for indemnifications losses	Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2018 2017 2018 2017 Allowance, beginning of period $ 2,542 $ 2,391 $ 2,489 $ 2,303 Provision for indemnification losses — 52 53 140 Payments — — — — Allowance, end of period $ 2,542 $ 2,443 $ 2,542 $ 2,443

Derivative Financial Instrume_2

Derivative Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2018
Derivative Financial Instruments
Schedule of derivative instruments	September 30, 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 $ 412 $ — $ — Not designated as hedges: Customer-related interest rate contracts: Matched interest rate swaps with borrower 46,136 8 34 2,599 — Matched interest rate swaps with counterparty 46,136 8 2,599 34 — Other contracts: IRLCs 120,659 538 939 — — 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: IRLCs 99,140 440 528 — — 1 Notional amounts are not recorded in the Consolidated Balance Sheets 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)	9 Months Ended
	Sep. 30, 2018
Other Noninterest Expenses
Schedule of other noninterest expense	Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2018 2017 2018 2017 Data processing service and maintenance contracts $ 1,879 $ 1,817 $ 5,524 $ 4,915 Professional fees 634 529 2,152 1,810 Marketing and advertising expenses 379 361 1,222 1,164 Telecommunication expenses 336 329 1,015 975 Travel and educational expenses 257 268 928 845 All other noninterest expenses 2,015 2,305 6,098 6,447 Total other noninterest expenses $ 5,500 $ 5,609 $ 16,939 $ 16,156

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Nature of Operations (Details)	Sep. 30, 2018subsidiary
C&F Bank
Nature of Operations
Number of wholly owned subsidiaries	5

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Share-Based Compensation (Details) - Restricted Stock	3 Months Ended	9 Months Ended
	Sep. 30, 2018USD ($)	Sep. 30, 2018USD ($)
Share-based compensation
Compensation expense before tax	$ 316,000	$ 956,000
Compensation expense after tax	235,000	710,000
Unrecognized compensation expense	$ 2,650,000	$ 2,650,000

Summary of Significant Accoun_6

Summary of Significant Accounting Policies - Restricted Stock Activity (Details) - $ / shares		9 Months Ended
		Sep. 30, 2018	Sep. 30, 2017
Shares
Unvested, beginning of period (in shares)	[1]	137,880
Unvested, end of period (in shares)		132,905
Restricted Stock
Shares
Unvested, beginning of period (in shares)		137,880	141,755
Granted (in shares)		11,610	15,725
Vested (in shares)		(14,625)	(17,260)
Forfeited		(1,960)	(1,690)
Unvested, end of period (in shares)		132,905	138,530
Weighted average grant date fair value
Unvested, beginning of period (in dollars per share)		$ 43.52	$ 39.77
Granted (in dollars per share)		58.30	45.46
Vested (in dollars per share)		40.47	35.40
Forfeited (in dollars per share)		43.26	43.16
Unvested, end of period (in dollars per share)		$ 45.14	$ 40.91
[1]	Derived from audited consolidated financial statements.

Summary of Significant Accoun_7

Summary of Significant Accounting Policies - Recently Adopted Accounting Pronouncements and Recent Significant Accounting Pronouncements (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Jan. 01, 2019	Dec. 31, 2017	[1]
Adoption of New Accounting Standards
Cumulative effect adjustment recorded	$ 137,851,000		$ 137,851,000			$ 127,431,000
Salaries and employee benefits	10,967,000	$ 10,854,000	32,773,000	$ 32,838,000
Noninterest income – Other	1,121,000	947,000	2,692,000	2,805,000
ASU 2014-09 | Difference between Revenue guidance in effect before and after Topic 606
Adoption of New Accounting Standards
Cumulative effect adjustment recorded	$ 0		$ 0
ASU 2017-07 | Adjustment
Adoption of New Accounting Standards
Salaries and employee benefits		116,000		370,000
Noninterest income – Other		$ 116,000		$ 370,000
ASC 842 | Proforma adjustment
Adoption of New Accounting Standards
Operating lease liability					$ 3,000,000
[1]	Derived from audited consolidated financial statements.

Securities - Available for sale

Securities - Available for sale Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 220,753	$ 218,168	[1]
Gross Unrealized Gains	860	2,164
Gross Unrealized Losses	(4,499)	(1,356)
Fair Value	217,114	218,976	[1]
U.S. government agencies and corporations
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	17,011	16,514
Gross Unrealized Losses	(822)	(341)
Fair Value	16,189	16,173
Mortgage-backed securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	106,940	97,677
Gross Unrealized Gains	29	142
Gross Unrealized Losses	(3,239)	(761)
Fair Value	103,730	97,058
Obligations of states and political subdivisions
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	96,802	103,977
Gross Unrealized Gains	831	2,022
Gross Unrealized Losses	(438)	(254)
Fair Value	$ 97,195	$ 105,745
[1]	Derived from audited consolidated financial statements.

Securities - Contractual Maturi

Securities - Contractual Maturities (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017	[1]
Amortized Cost
Due in one year or less	$ 53,133		$ 53,133
Due after one year through five years	150,514		150,514
Due after five years through ten years	11,769		11,769
Due after ten years	5,337		5,337
Amortized Cost	220,753		220,753		$ 218,168
Estimated Fair Value
Due in one year or less	52,987		52,987
Due after one year through five years	147,076		147,076
Due after five years through ten years	11,711		11,711
Due after ten years	5,340		5,340
Fair Value	217,114		217,114		$ 218,976
Gross realized gains and losses on and the proceeds from maturities and calls of securities
Gross realized gains from calls of securities available for sale	5	$ 2	10	$ 14
Gross realized losses from calls of securities available for sale			(1)	(4)
Net realized gains from calls of securities available for sale	5	2	9	10
Proceeds from maturities and calls and paydowns of securities	$ 12,865	$ 12,472	$ 35,267	$ 33,960
[1]	Derived from audited consolidated financial statements.

Securities - Pledged as Collate

Securities - Pledged as Collateral (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Available for sale securities
Amortized Cost	$ 220,753	$ 218,168	[1]
Fair Value	217,114	218,976	[1]
Securities Pledged as Collateral
Available for sale securities
Amortized Cost	93,240	118,700
Fair Value	$ 91,900	$ 119,260
[1]	Derived from audited consolidated financial statements.

Securities - Unrealized Loss Po

Securities - Unrealized Loss Positions (Details)	9 Months Ended
	Sep. 30, 2018USD ($)security	Dec. 31, 2017USD ($)
Fair value
Less Than 12 Months, Fair Value	$ 82,270,000	$ 78,732,000
12 Months or More, Fair Value	73,260,000	45,109,000
Total Fair Value	155,530,000	123,841,000
Unrealized Loss
Less Than 12 Months, Unrealized Loss	1,473,000	489,000
12 Months or More, Unrealized Loss	3,026,000	867,000
Total Unrealized Loss	$ 4,499,000	1,356,000
Other information
Number of positions considered temporarily impaired | security	270
Debt securities considered temporarily impaired	$ 155,530,000	123,841,000
Other than temporary impairment	0
U.S. government agencies and corporations
Fair value
Less Than 12 Months, Fair Value	749,000	2,972,000
12 Months or More, Fair Value	15,440,000	13,201,000
Total Fair Value	16,189,000	16,173,000
Unrealized Loss
Less Than 12 Months, Unrealized Loss	1,000	31,000
12 Months or More, Unrealized Loss	821,000	310,000
Total Unrealized Loss	822,000	341,000
Other information
Debt securities considered temporarily impaired	16,189,000	16,173,000
Mortgage-backed securities
Fair value
Less Than 12 Months, Fair Value	53,707,000	57,116,000
12 Months or More, Fair Value	44,876,000	22,545,000
Total Fair Value	98,583,000	79,661,000
Unrealized Loss
Less Than 12 Months, Unrealized Loss	1,290,000	341,000
12 Months or More, Unrealized Loss	1,949,000	420,000
Total Unrealized Loss	3,239,000	761,000
Other information
Debt securities considered temporarily impaired	98,583,000	79,661,000
Obligations of states and political subdivisions
Fair value
Less Than 12 Months, Fair Value	27,814,000	18,644,000
12 Months or More, Fair Value	12,944,000	9,363,000
Total Fair Value	40,758,000	28,007,000
Unrealized Loss
Less Than 12 Months, Unrealized Loss	182,000	117,000
12 Months or More, Unrealized Loss	256,000	137,000
Total Unrealized Loss	438,000	254,000
Other information
Debt securities considered temporarily impaired	$ 40,758,000	$ 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	99.00%
Not A Rating Or Better
Other information
Percentage of portfolio with rating	1.00%

Securities - Restricted Stocks

Securities - Restricted Stocks (Details) - USD ($)	9 Months Ended
	Sep. 30, 2018	Dec. 31, 2017	[1]
Securities
Restricted stock, at cost	$ 3,247,000	$ 3,298,000
Restricted stocks, other-than-temporary impairment	$ 0
[1]	Derived from audited consolidated financial statements.

Loans - Major Classifications o

Loans - Major Classifications of Loans (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Loans
Loans	$ 1,037,382	$ 1,027,788
Less allowance for loan losses	(34,959)	(35,726)	[1]
Loans, net	1,002,423	992,062	[1]
Real estate - residential mortgage
Loans
Loans	184,362	184,863
Real estate - construction
Loans
Loans	55,650	44,782
Commercial, financial and agricultural
Loans
Loans	426,310	437,884
Equity lines
Loans
Loans	55,655	55,237
Consumer Loan
Loans
Loans	15,464	13,018
Amount included related to demand deposit overdrafts	216	290
Consumer Finance
Loans
Loans	$ 299,941	$ 292,004
[1]	Derived from audited consolidated financial statements.

Loans - Loans Acquired (Details

Loans - Loans Acquired (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
PCI Loans
Carrying amount
Acquired Loans	$ 2,150
CVBK
Loans
Outstanding principal balance	50,393	$ 57,939
Carrying amount
Acquired Loans	40,314	45,896
CVBK | Real estate - residential mortgage
Carrying amount
Acquired Loans	9,605	11,347
CVBK | Commercial, financial and agricultural
Carrying amount
Acquired Loans	21,371	24,777
CVBK | Equity lines
Carrying amount
Acquired Loans	9,332	9,760
CVBK | Consumer Loan
Carrying amount
Acquired Loans	6	12
CVBK | PCI Loans
Loans
Outstanding principal balance	10,253	12,856
Carrying amount
Acquired Loans	2,148	3,103
CVBK | PCI Loans | Real estate - residential mortgage
Carrying amount
Acquired Loans	439	492
CVBK | PCI Loans | Commercial, financial and agricultural
Carrying amount
Acquired Loans	1,593	2,472
CVBK | PCI Loans | Equity lines
Carrying amount
Acquired Loans	116	139
CVBK | Purchased Performing Loans
Loans
Outstanding principal balance	40,140	45,083
Carrying amount
Acquired Loans	38,166	42,793
CVBK | Purchased Performing Loans | Real estate - residential mortgage
Carrying amount
Acquired Loans	9,166	10,855
CVBK | Purchased Performing Loans | Commercial, financial and agricultural
Carrying amount
Acquired Loans	19,778	22,305
CVBK | Purchased Performing Loans | Equity lines
Carrying amount
Acquired Loans	9,216	9,621
CVBK | Purchased Performing Loans | Consumer Loan
Carrying amount
Acquired Loans	$ 6	$ 12

Loans - Loans on Nonaccrual Sta

Loans - Loans on Nonaccrual Status (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Loans on nonaccrual status
Loans on nonaccrual status	$ 3,778	$ 6,075
Real estate - residential mortgage
Loans on nonaccrual status
Loans on nonaccrual status	611	830
Commercial, financial and agricultural | Commercial real estate lending
Loans on nonaccrual status
Loans on nonaccrual status	1,206	3,796
Commercial, financial and agricultural | Commercial business lending
Loans on nonaccrual status
Loans on nonaccrual status	24	34
Equity lines
Loans on nonaccrual status
Loans on nonaccrual status	912	651
Consumer Finance
Loans on nonaccrual status
Loans on nonaccrual status	$ 1,025	$ 764

Loans - Past Due Status (Detail

Loans - Past Due Status (Details) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Loans on nonaccrual status
Total Past Due	$ 16,300,000	$ 22,759,000
Current	1,018,934,000	1,001,926,000
Total Loans	1,037,382,000	1,027,788,000
90+ days past due and accruing	581,000	306,000
Additional disclosure for nonaccrual loans
Current, nonaccrual status	942,000	890,000
Nonaccrual loans, 30-59 days past due	218,000	458,000
Nonaccrual loans, 60-89 days past due	1,390,000	14,000
Nonaccrual loans, 90+ days past due	1,230,000	4,710,000
PCI
Loans on nonaccrual status
PCI	2,148,000	3,103,000
30-59 Days Past Due
Loans on nonaccrual status
Total Past Due	11,013,000	15,663,000
60-89 Days Past Due
Loans on nonaccrual status
Total Past Due	3,557,000	2,075,000
90+ Days Past Due
Loans on nonaccrual status
Total Past Due	1,730,000	5,021,000
Real estate - residential mortgage
Loans on nonaccrual status
Total Past Due	699,000	2,164,000
Current	183,224,000	182,207,000
Total Loans	184,362,000	184,863,000
90+ days past due and accruing	194,000	90,000
Real estate - residential mortgage | PCI
Loans on nonaccrual status
PCI	439,000	492,000
Real estate - residential mortgage | 30-59 Days Past Due
Loans on nonaccrual status
Total Past Due	405,000	1,905,000
Real estate - residential mortgage | 60-89 Days Past Due
Loans on nonaccrual status
Total Past Due		14,000
Real estate - residential mortgage | 90+ Days Past Due
Loans on nonaccrual status
Total Past Due	294,000	245,000
Equity lines
Loans on nonaccrual status
Total Past Due	508,000	686,000
Current	55,031,000	54,412,000
Total Loans	55,655,000	55,237,000
90+ days past due and accruing	72,000	136,000
Equity lines | PCI
Loans on nonaccrual status
PCI	116,000	139,000
Equity lines | 30-59 Days Past Due
Loans on nonaccrual status
Total Past Due	250,000	550,000
Equity lines | 60-89 Days Past Due
Loans on nonaccrual status
Total Past Due	186,000
Equity lines | 90+ Days Past Due
Loans on nonaccrual status
Total Past Due	72,000	136,000
Consumer Loan
Loans on nonaccrual status
Total Past Due	154,000	9,000
Current	15,310,000	13,009,000
Total Loans	15,464,000	13,018,000
Consumer Loan | 30-59 Days Past Due
Loans on nonaccrual status
Total Past Due	154,000	9,000
Consumer Finance
Loans on nonaccrual status
Total Past Due	12,891,000	15,098,000
Current	287,050,000	276,906,000
Total Loans	299,941,000	292,004,000
Consumer Finance | 30-59 Days Past Due
Loans on nonaccrual status
Total Past Due	9,892,000	12,273,000
Consumer Finance | 60-89 Days Past Due
Loans on nonaccrual status
Total Past Due	1,974,000	2,061,000
Consumer Finance | 90+ Days Past Due
Loans on nonaccrual status
Total Past Due	1,025,000	764,000
Construction Lending | Real estate - construction
Loans on nonaccrual status
Current	44,756,000	41,449,000
Total Loans	44,756,000	41,449,000
Consumer lot lending | Real estate - construction
Loans on nonaccrual status
Current	10,894,000	3,333,000
Total Loans	10,894,000	3,333,000
Commercial real estate lending | Commercial, financial and agricultural
Loans on nonaccrual status
Total Past Due	1,777,000	4,115,000
Current	302,413,000	297,903,000
Total Loans	305,783,000	304,490,000
90+ days past due and accruing	315,000	78,000
Commercial real estate lending | Commercial, financial and agricultural | PCI
Loans on nonaccrual status
PCI	1,593,000	2,472,000
Commercial real estate lending | Commercial, financial and agricultural | 30-59 Days Past Due
Loans on nonaccrual status
Total Past Due	65,000	241,000
Commercial real estate lending | Commercial, financial and agricultural | 60-89 Days Past Due
Loans on nonaccrual status
Total Past Due	1,397,000
Commercial real estate lending | Commercial, financial and agricultural | 90+ Days Past Due
Loans on nonaccrual status
Total Past Due	315,000	3,874,000
Land acquisition and development lending | Commercial, financial and agricultural
Loans on nonaccrual status
Current	34,035,000	39,844,000
Total Loans	34,035,000	39,844,000
Builder line lending | Commercial, financial and agricultural
Loans on nonaccrual status
Total Past Due	247,000	685,000
Current	27,593,000	28,911,000
Total Loans	27,840,000	29,596,000
Builder line lending | Commercial, financial and agricultural | 30-59 Days Past Due
Loans on nonaccrual status
Total Past Due	247,000	685,000
Commercial business lending | Commercial, financial and agricultural
Loans on nonaccrual status
Total Past Due	24,000	2,000
Current	58,628,000	63,952,000
Total Loans	58,652,000	63,954,000
90+ days past due and accruing		2,000
Commercial business lending | Commercial, financial and agricultural | 90+ Days Past Due
Loans on nonaccrual status
Total Past Due	24,000	2,000
CVBK | 1-29 Days Past Due
Loans on nonaccrual status
Total Past Due	37,970,000	42,530,000
CVBK | 30-59 Days Past Due
Loans on nonaccrual status
Total Past Due	120,000	137,000
CVBK | 60-89 Days Past Due
Loans on nonaccrual status
Total Past Due	72,000	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	$ 78,000	$ 90,000

Loans - Troubled Debt Restructu

Loans - Troubled Debt Restructurings (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2018USD ($)loan	Sep. 30, 2017USD ($)loan	Sep. 30, 2018USD ($)loan	Sep. 30, 2017USD ($)loan
Loan modifications classified as troubled debt restructurings
Number of Loans | loan	1	2
Pre-Modification Recorded Investment (in Dollars)	$ 5,000	$ 365,000
Post-Modification Recorded Investment (in Dollars)	5,000	365,000
Recorded Investment, TDR payment defaults	$ 0	$ 4,650,000	$ 0	$ 4,650,000
TDR payment default period			12 months
Period determining when a past due TDR becomes a subsequent default			90 days
Real estate - residential mortgage | Interest reduction
Loan modifications classified as troubled debt restructurings
Number of Loans | loan				2
Pre-Modification Recorded Investment (in Dollars)				$ 365,000
Post-Modification Recorded Investment (in Dollars)				$ 365,000
Real estate - residential mortgage | Interest rate concession
Loan modifications classified as troubled debt restructurings
Number of Loans | loan		2
Pre-Modification Recorded Investment (in Dollars)		$ 365,000
Post-Modification Recorded Investment (in Dollars)		$ 365,000
Commercial, financial and agricultural
Loan modifications classified as troubled debt restructurings
Number of Loans | loan			1	9
Pre-Modification Recorded Investment (in Dollars)			$ 5,000	$ 7,165,000
Post-Modification Recorded Investment (in Dollars)			$ 5,000	$ 7,165,000
Commercial, financial and agricultural | Commercial real estate lending | Interest rate concession
Loan modifications classified as troubled debt restructurings
Number of Loans | loan				4
Pre-Modification Recorded Investment (in Dollars)				$ 2,154,000
Post-Modification Recorded Investment (in Dollars)				$ 2,154,000
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
Consumer Loan | Interest rate concession
Loan modifications classified as troubled debt restructurings
Number of Loans | loan	1		1
Pre-Modification Recorded Investment (in Dollars)	$ 5,000		$ 5,000
Post-Modification Recorded Investment (in Dollars)	$ 5,000		$ 5,000

Loans - Impaired Loans (Details

Loans - Impaired Loans (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Impaired loans
Impaired loans, troubled debt restructurings	$ 6,960
Impaired loans, Unpaid Principal Balance	7,668	$ 11,120
Impaired loans, Recorded Investment in Loans without Specific Reserve	2,848	4,832
Impaired loans, Recorded Investment in Loans with Specific Reserve	4,435	6,064,000
Impaired loans, Related Allowance	1,104	829
Impaired loans, Average Balance	8,246	11,959
Impaired loans, Interest Income Recognized	218	367
Real estate - residential mortgage
Impaired loans
Impaired loans, Unpaid Principal Balance	3,020	3,745
Impaired loans, Recorded Investment in Loans without Specific Reserve	1,153	1,603
Impaired loans, Recorded Investment in Loans with Specific Reserve	1,768	2,033,000
Impaired loans, Related Allowance	99	214
Impaired loans, Average Balance	3,010	3,743
Impaired loans, Interest Income Recognized	109	184
Commercial, financial and agricultural | Commercial real estate lending
Impaired loans
Impaired loans, Unpaid Principal Balance	4,245	6,981
Impaired loans, Recorded Investment in Loans without Specific Reserve	1,639	2,841
Impaired loans, Recorded Investment in Loans with Specific Reserve	2,335	4,031,000
Impaired loans, Related Allowance	674	615
Impaired loans, Average Balance	4,845	7,818
Impaired loans, Interest Income Recognized	108	168
Commercial, financial and agricultural | Commercial business lending
Impaired loans
Impaired loans, Unpaid Principal Balance	33	41
Impaired loans, Recorded Investment in Loans without Specific Reserve	25	35
Impaired loans, Average Balance	26	45
Equity lines
Impaired loans
Impaired loans, Unpaid Principal Balance	365	32
Impaired loans, Recorded Investment in Loans without Specific Reserve	31	31
Impaired loans, Recorded Investment in Loans with Specific Reserve	327
Impaired loans, Related Allowance	326
Impaired loans, Average Balance	360	32
Impaired loans, Interest Income Recognized	1	2
Consumer Loan
Impaired loans
Impaired loans, Unpaid Principal Balance	5	321
Impaired loans, Recorded Investment in Loans without Specific Reserve		322
Impaired loans, Recorded Investment in Loans with Specific Reserve	5
Impaired loans, Related Allowance	5
Impaired loans, Average Balance	5	321
Impaired loans, Interest Income Recognized		$ 13
PCI Loans
Impaired loans
Carrying value	$ 2,150

Loans - Change in Accretable Yi

Loans - Change in Accretable Yield (Details) - PCI Loans - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Change in the accretable yield
Accretable yield	$ 7,304	$ 8,637
Accretion	(2,892)	(2,176)
Reclassification of nonaccreatable difference due to improvement in expected cash flows	1,410	1,022
Other changes, net	(324)	306
Accretable yield	$ 5,498	$ 7,789

Allowance for Loan Losses - Cha

Allowance for Loan Losses - Change in Allowance for Loan Losses (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Changes in the allowance for loan losses
Balance at the beginning of period	$ 35,726	$ 37,066
Provision charged to operations	7,700	11,935
Loans charged off	(11,993)	(16,135)
Recoveries of loans previously charged off	3,526	3,469
Balance at the end of period	34,959	36,335
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	(122)	(69)
Loans charged off		(154)
Recoveries of loans previously charged off	52	59
Balance at the end of period	2,301	2,395
Real estate - construction
Changes in the allowance for loan losses
Balance at the beginning of period	605	816
Provision charged to operations	174	(278)
Balance at the end of period	779	538
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	(625)	500
Loans charged off	(2)	(273)
Recoveries of loans previously charged off	46	18
Balance at the end of period	6,897	7,638
Equity lines
Changes in the allowance for loan losses
Balance at the beginning of period	688	685
Provision charged to operations	450	23
Loans charged off		(20)
Recoveries of loans previously charged off		2
Balance at the end of period	1,138	690
Consumer Loan
Changes in the allowance for loan losses
Balance at the beginning of period	231	261
Provision charged to operations	123	24
Loans charged off	(248)	(224)
Recoveries of loans previously charged off	174	143
Balance at the end of period	280	204
Consumer Finance
Changes in the allowance for loan losses
Balance at the beginning of period	24,353	25,352
Provision charged to operations	7,700	11,735
Loans charged off	(11,743)	(15,464)
Recoveries of loans previously charged off	3,254	3,247
Balance at the end of period	$ 23,564	$ 24,870

Allowance for Loan Losses - All

Allowance for Loan Losses - Allowance and Loans by Impairment Methodology (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017	Sep. 30, 2017	Dec. 31, 2016
Changes in the allowance for loan losses
Ending balance	$ 34,959	$ 35,726	$ 36,335	$ 37,066
Ending balance: individually evaluated for impairment	1,104	829
Ending balance, collectively evaluated for impairment	33,855	34,897
Loans:
Ending balance	1,037,382	1,027,788
Ending balance: individually evaluated for impairment	7,283	10,896
Ending balance: collectively evaluated for impairment	1,027,951	1,013,789
Real estate - residential mortgage
Changes in the allowance for loan losses
Ending balance	2,301	2,371	2,395	2,559
Ending balance: individually evaluated for impairment	99	214
Ending balance, collectively evaluated for impairment	2,202	2,157
Loans:
Ending balance	184,362	184,863
Ending balance: individually evaluated for impairment	2,921	3,636
Ending balance: collectively evaluated for impairment	181,002	180,735
Real estate - construction
Changes in the allowance for loan losses
Ending balance	779	605	538	816
Ending balance, collectively evaluated for impairment	779	605
Loans:
Ending balance	55,650	44,782
Ending balance: collectively evaluated for impairment	55,650	44,782
Commercial, financial and agricultural
Changes in the allowance for loan losses
Ending balance	6,897	7,478	7,638	7,393
Ending balance: individually evaluated for impairment	674	615
Ending balance, collectively evaluated for impairment	6,223	6,863
Loans:
Ending balance	426,310	437,884
Ending balance: individually evaluated for impairment	3,999	6,907
Ending balance: collectively evaluated for impairment	420,718	428,505
Equity lines
Changes in the allowance for loan losses
Ending balance	1,138	688	690	685
Ending balance: individually evaluated for impairment	326
Ending balance, collectively evaluated for impairment	812	688
Loans:
Ending balance	55,655	55,237
Ending balance: individually evaluated for impairment	358	31
Ending balance: collectively evaluated for impairment	55,181	55,067
Consumer Loan
Changes in the allowance for loan losses
Ending balance	280	231	204	261
Ending balance: individually evaluated for impairment	5
Ending balance, collectively evaluated for impairment	275	231
Loans:
Ending balance	15,464	13,018
Ending balance: individually evaluated for impairment	5	322
Ending balance: collectively evaluated for impairment	15,459	12,696
Consumer Finance
Changes in the allowance for loan losses
Ending balance	23,564	24,353	$ 24,870	$ 25,352
Ending balance, collectively evaluated for impairment	23,564	24,353
Loans:
Ending balance	299,941	292,004
Ending balance: collectively evaluated for impairment	299,941	292,004
PCI
Loans:
Ending balance: acquired loans - purchase credit impaired	2,148	3,103
PCI | Real estate - residential mortgage
Loans:
Ending balance: acquired loans - purchase credit impaired	439	492
PCI | Commercial, financial and agricultural
Loans:
Ending balance: acquired loans - purchase credit impaired	1,593	2,472
PCI | Equity lines
Loans:
Ending balance: acquired loans - purchase credit impaired	$ 116	$ 139

Allowance for Loan Losses - Cre

Allowance for Loan Losses - Credit Quality Indicators (Details) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Allowance for loan losses
Loans, excluding consumer finance	$ 737,441,000	$ 735,784,000
Loans	1,037,382,000	1,027,788,000
Pass
Allowance for loan losses
Loans, excluding consumer finance	714,322,000	702,198,000
Special Mention
Allowance for loan losses
Loans, excluding consumer finance	17,906,000	4,611,000
Substandard
Allowance for loan losses
Loans, excluding consumer finance	2,460,000	23,664,000
Substandard Nonaccrual
Allowance for loan losses
Loans, excluding consumer finance	2,753,000	5,311,000
Real estate - residential mortgage
Allowance for loan losses
Loans, excluding consumer finance	184,362,000	184,863,000
Loans	184,362,000	184,863,000
Real estate - residential mortgage | Pass
Allowance for loan losses
Loans, excluding consumer finance	180,854,000	179,963,000
Real estate - residential mortgage | Special Mention
Allowance for loan losses
Loans, excluding consumer finance	1,223,000	1,235,000
Real estate - residential mortgage | Substandard
Allowance for loan losses
Loans, excluding consumer finance	1,674,000	2,835,000
Real estate - residential mortgage | Substandard Nonaccrual
Allowance for loan losses
Loans, excluding consumer finance	611,000	830,000
Real estate - construction
Allowance for loan losses
Loans	55,650,000	44,782,000
Real estate - construction | Construction Lending
Allowance for loan losses
Loans, excluding consumer finance	44,756,000	41,449,000
Real estate - construction | Construction Lending | Pass
Allowance for loan losses
Loans, excluding consumer finance	44,756,000	41,449,000
Real estate - construction | Consumer lot lending
Allowance for loan losses
Loans, excluding consumer finance	10,894,000	3,333,000
Real estate - construction | Consumer lot lending | Pass
Allowance for loan losses
Loans, excluding consumer finance	10,044,000	3,333,000
Real estate - construction | Consumer lot lending | Special Mention
Allowance for loan losses
Loans, excluding consumer finance	850,000
Commercial, financial and agricultural
Allowance for loan losses
Loans	426,310,000	437,884,000
Commercial, financial and agricultural | Commercial real estate lending
Allowance for loan losses
Loans, excluding consumer finance	305,783,000	304,490,000
Commercial, financial and agricultural | Commercial real estate lending | Pass
Allowance for loan losses
Loans, excluding consumer finance	298,883,000	293,292,000
Commercial, financial and agricultural | Commercial real estate lending | Special Mention
Allowance for loan losses
Loans, excluding consumer finance	5,007,000	2,874,000
Commercial, financial and agricultural | Commercial real estate lending | Substandard
Allowance for loan losses
Loans, excluding consumer finance	687,000	4,528,000
Commercial, financial and agricultural | Commercial real estate lending | Substandard Nonaccrual
Allowance for loan losses
Loans, excluding consumer finance	1,206,000	3,796,000
Commercial, financial and agricultural | Land acquisition and development lending
Allowance for loan losses
Loans, excluding consumer finance	34,035,000	39,844,000
Commercial, financial and agricultural | Land acquisition and development lending | Pass
Allowance for loan losses
Loans, excluding consumer finance	24,040,000	24,253,000
Commercial, financial and agricultural | Land acquisition and development lending | Special Mention
Allowance for loan losses
Loans, excluding consumer finance	9,995,000
Commercial, financial and agricultural | Land acquisition and development lending | Substandard
Allowance for loan losses
Loans, excluding consumer finance		15,591,000
Commercial, financial and agricultural | Builder line lending
Allowance for loan losses
Loans, excluding consumer finance	27,840,000	29,596,000
Commercial, financial and agricultural | Builder line lending | Pass
Allowance for loan losses
Loans, excluding consumer finance	27,840,000	29,596,000
Commercial, financial and agricultural | Commercial business lending
Allowance for loan losses
Loans, excluding consumer finance	58,652,000	63,954,000
Commercial, financial and agricultural | Commercial business lending | Pass
Allowance for loan losses
Loans, excluding consumer finance	58,191,000	63,749,000
Commercial, financial and agricultural | Commercial business lending | Special Mention
Allowance for loan losses
Loans, excluding consumer finance	437,000	34,000
Commercial, financial and agricultural | Commercial business lending | Substandard
Allowance for loan losses
Loans, excluding consumer finance		137,000
Commercial, financial and agricultural | Commercial business lending | Substandard Nonaccrual
Allowance for loan losses
Loans, excluding consumer finance	24,000	34,000
Equity lines
Allowance for loan losses
Loans, excluding consumer finance	55,655,000	55,237,000
Loans	55,655,000	55,237,000
Equity lines | Pass
Allowance for loan losses
Loans, excluding consumer finance	54,257,000	53,870,000
Equity lines | Special Mention
Allowance for loan losses
Loans, excluding consumer finance	393,000	465,000
Equity lines | Substandard
Allowance for loan losses
Loans, excluding consumer finance	93,000	251,000
Equity lines | Substandard Nonaccrual
Allowance for loan losses
Loans, excluding consumer finance	912,000	651,000
Consumer Loan
Allowance for loan losses
Loans, excluding consumer finance	15,464,000	13,018,000
Loans	15,464,000	13,018,000
Consumer Loan | Pass
Allowance for loan losses
Loans, excluding consumer finance	15,457,000	12,693,000
Consumer Loan | Special Mention
Allowance for loan losses
Loans, excluding consumer finance	1,000	3,000
Consumer Loan | Substandard
Allowance for loan losses
Loans, excluding consumer finance	6,000	322,000
CVBK | Pass
Allowance for loan losses
Loans, excluding consumer finance		42,670,000
Loans	38,490,000
CVBK | Special Mention
Allowance for loan losses
Loans, excluding consumer finance		1,090,000
Loans	1,200,000
CVBK | Substandard
Allowance for loan losses
Loans, excluding consumer finance		1,980,000
Loans	528,000
CVBK | Substandard Nonaccrual
Allowance for loan losses
Loans, excluding consumer finance		$ 161,000
Loans	$ 101,000

Allowance for Loan Losses - Loa

Allowance for Loan Losses - Loans by Credit Quality Indicators - Performing and Non-Performing (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Allowance for loan losses
Loans	$ 1,037,382	$ 1,027,788
Consumer Finance
Allowance for loan losses
Loans	299,941	292,004
Consumer Finance | Performing
Allowance for loan losses
Loans	298,916	291,240
Consumer Finance | Nonperforming
Allowance for loan losses
Loans	$ 1,025	$ 764

Shareholders_ Equity, Other C_3

Shareholders’ Equity, Other Comprehensive Income and Earnings Per Share - Shareholders' Equity (Details) - Common Stock - shares	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Repurchase Program
Shareholders’ Equity
Shares repurchased	0	0
Restricted Stock Tax Withholding Repurchases
Shareholders’ Equity
Shares repurchased	3,947	4,049

Shareholders_ Equity, Other C_4

Shareholders’ Equity, Other Comprehensive Income and Earnings Per Share - Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Shareholders’ Equity, Other Comprehensive Income and Earnings Per Share
Deferred taxes included in AOCI	$ 1,350	$ 491
Net unrealized (losses) gains on securities	(2,875)	638
Net unrecognized gains on cash flow hedges	306	124
Net unrecognized losses on defined benefit plan	(2,612)	(2,649)
Total accumulated other comprehensive income	$ (5,181)	$ (1,887)	[1]
[1]	Derived from audited consolidated financial statements.

Shareholders_ Equity, Other C_5

Shareholders’ Equity, Other Comprehensive Income and Earnings Per Share - Earnings Per Share (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Components of earnings per share calculations
Net income	$ 5,101	$ 3,017	$ 14,063	$ 9,887
Weighted average number of common shares used in earnings per share – basic (in shares)	3,503,371	3,487,170	3,502,550	3,485,725
Effect of dilutive securities:
Stock option awards				105
Weighted average number of shares used in earnings per share – assuming dilution	3,503,371	3,487,170	3,502,550	3,485,830

Shareholders_ Equity, Other C_6

Shareholders’ Equity, Other Comprehensive Income and Earnings Per Share - Antidilutive Securities (Details) - shares	3 Months Ended	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2017	Sep. 30, 2018
Antidilutive securities
Stock options outstanding			0
Stock options
Antidilutive securities
Antidilutive securities excluded from earnings per share	0	0

Employee Benefit Plans (Details

Employee Benefit Plans (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Components of net periodic benefit cost
Service cost, included in salaries and employee benefits	$ 309	$ 274	$ 923	$ 840
Other components of net periodic benefit cost:
Interest cost	138	138	384	414
Expected return on plan assets	(373)	(280)	(1,039)	(854)
Amortization of prior service credit	(16)	(15)	(46)	(45)
Recognized net actuarial losses	32	41	93	115
Other components of net periodic benefit cost, included in other noninterest income	(219)	(116)	(608)	(370)
Net periodic benefit cost	$ 90	$ 158	$ 315	$ 470

Fair Value of Assets and Liab_3

Fair Value of Assets and Liabilities - Financial Assets Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Securities available for sale
Securities available for sale	$ 217,114	$ 218,976	[1]
Recurring
Securities available for sale
Securities available for sale	217,114	218,976
Loans held for sale	45,979	55,384
Total assets measured at fair value	267,077	276,315
Liabilities:
Derivative liabilities	2,633	1,261
Recurring | Cash Flow Hedges
Securities available for sale
Derivative asset	412	166
Recurring | Interest rate lock commitments/IRLCs
Securities available for sale
Derivative asset	939	528
Recurring | Interest Rate Swap
Securities available for sale
Derivative asset	2,633	1,261
Liabilities:
Derivative liabilities	2,633	1,261
Level 2 | Recurring
Securities available for sale
Securities available for sale	217,114	218,976
Loans held for sale	45,979	55,384
Total assets measured at fair value	267,077	276,315
Liabilities:
Derivative liabilities	2,633	1,261
Level 2 | Recurring | Cash Flow Hedges
Securities available for sale
Derivative asset	412	166
Level 2 | Recurring | Interest rate lock commitments/IRLCs
Securities available for sale
Derivative asset	939	528
Level 2 | Recurring | Interest Rate Swap
Securities available for sale
Derivative asset	2,633	1,261
Liabilities:
Derivative liabilities	2,633	1,261
U.S. government agencies and corporations
Securities available for sale
Securities available for sale	16,189	16,173
U.S. government agencies and corporations | Recurring
Securities available for sale
Securities available for sale	16,189	16,173
U.S. government agencies and corporations | Level 2 | Recurring
Securities available for sale
Securities available for sale	16,189	16,173
Mortgage-backed securities
Securities available for sale
Securities available for sale	103,730	97,058
Mortgage-backed securities | Recurring
Securities available for sale
Securities available for sale	103,730	97,058
Mortgage-backed securities | Level 2 | Recurring
Securities available for sale
Securities available for sale	103,730	97,058
Obligations of states and political subdivisions
Securities available for sale
Securities available for sale	97,195	105,745
Obligations of states and political subdivisions | Recurring
Securities available for sale
Securities available for sale	97,195	105,745
Obligations of states and political subdivisions | Level 2 | Recurring
Securities available for sale
Securities available for sale	$ 97,195	$ 105,745
[1]	Derived from audited consolidated financial statements.

Fair Value of Assets and Liab_4

Fair Value of Assets and Liabilities - Financial Assets Measured at Fair Value on Non-Recurring Basis (Details) - Nonrecurring $ in Thousands	Sep. 30, 2018USD ($)	Dec. 31, 2017USD ($)
Fair value assets and liabilities - Nonrecurring Basis
Financial assets measured at fair value on a non-recurring basis	$ 836	$ 3,606
Impaired loans, net
Fair value assets and liabilities - Nonrecurring Basis
Financial assets measured at fair value on a non-recurring basis	648	3,438
Other real estate owned, net
Fair value assets and liabilities - Nonrecurring Basis
Financial assets measured at fair value on a non-recurring basis	188	168
Level 3
Fair value assets and liabilities - Nonrecurring Basis
Financial assets measured at fair value on a non-recurring basis	836	3,606
Level 3 | Impaired loans, net
Fair value assets and liabilities - Nonrecurring Basis
Financial assets measured at fair value on a non-recurring basis	$ 648	3,438
Impaired loans, net, valuation technique	cffi:ValuationTechniqueAppraisalsMember
Impaired loans, net, measurement input	us-gaap:MeasurementInputDiscountRateMember
Level 3 | Impaired loans, net | Minimum
Fair value assets and liabilities - Nonrecurring Basis
Impaired loans, input	0.18
Level 3 | Impaired loans, net | Maximum
Fair value assets and liabilities - Nonrecurring Basis
Impaired loans, input	0.38
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	$ 188	$ 168
Other real estate owned, net, valuation technique	cffi:ValuationTechniqueAppraisalsMember
Other real estate owned, net, measurement input	us-gaap:MeasurementInputDiscountRateMember
Level 3 | Other real estate owned, net | Minimum
Fair value assets and liabilities - Nonrecurring Basis
Other real estate owned, input	0.28
Level 3 | Other real estate owned, net | Maximum
Fair value assets and liabilities - Nonrecurring Basis
Other real estate owned, input	0.69

Fair Value of Assets and Liab_5

Fair Value of Assets and Liabilities - Carrying Value and Estimated Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Assets:
Securities available for sale	$ 217,114	$ 218,976	[1]
Bank-owned life insurance	15,869	15,589	[1]
Carrying Value
Assets:
Cash and short-term investments	109,149	119,423
Securities available for sale	217,114	218,976
Loans, net	1,002,423	992,062
Loans held for sale	45,979	55,384
Bank-owned life insurance	15,869	15,589
Accrued interest receivable	7,354	7,589
Financial liabilities:
Demand deposits	812,213	823,476
Time deposits	346,242	347,953
Borrowings	159,796	167,860
Accrued interest payable	916	838
Total Fair Value
Assets:
Cash and short-term investments	109,149	119,423
Securities available for sale	217,114	218,976
Loans, net	985,257	983,620
Loans held for sale	45,979	55,384
Bank-owned life insurance	15,869	15,589
Accrued interest receivable	7,354	7,589
Financial liabilities:
Demand deposits	812,213	823,476
Time deposits	344,065	350,681
Borrowings	151,334	159,670
Accrued interest payable	916	838
Total Fair Value | Level 1
Assets:
Cash and short-term investments	109,149	119,423
Accrued interest receivable	7,354	7,589
Financial liabilities:
Demand deposits	812,213	823,476
Accrued interest payable	916	838
Total Fair Value | Level 2
Assets:
Securities available for sale	217,114	218,976
Loans held for sale	45,979	55,384
Bank-owned life insurance	15,869	15,589
Financial liabilities:
Time deposits	344,065	350,681
Borrowings	151,334	159,670
Total Fair Value | Level 3
Assets:
Loans, net	985,257	983,620
Interest rate lock commitments/IRLCs | Carrying Value
Assets:
Derivative asset	939	528
Interest rate lock commitments/IRLCs | Total Fair Value
Assets:
Derivative asset	939	528
Interest rate lock commitments/IRLCs | Total Fair Value | Level 2
Assets:
Derivative asset	939	528
Interest Rate Swap | Carrying Value
Assets:
Derivative asset	2,633	1,261
Financial liabilities:
Derivative liabilities	2,633	1,261
Interest Rate Swap | Total Fair Value
Assets:
Derivative asset	2,633	1,261
Financial liabilities:
Derivative liabilities	2,633	1,261
Interest Rate Swap | Total Fair Value | Level 2
Assets:
Derivative asset	2,633	1,261
Financial liabilities:
Derivative liabilities	2,633	1,261
Cash Flow Hedges | Carrying Value
Assets:
Derivative asset	412	166
Cash Flow Hedges | Total Fair Value
Assets:
Derivative asset	412	166
Cash Flow Hedges | Total Fair Value | Level 2
Assets:
Derivative asset	$ 412	$ 166
[1]	Derived from audited consolidated financial statements.

Business Segments - Segment Rep

Business Segments - Segment Reporting (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018USD ($)	Sep. 30, 2017USD ($)	Sep. 30, 2018USD ($)segment	Sep. 30, 2017USD ($)	Dec. 31, 2017USD ($)	[1]
Business Segments
Number of Operating Segments | segment			3
Revenues:
Interest income	$ 23,691	$ 22,703	$ 69,086	$ 67,147
Gains on sales of loans	1,752	2,156	6,399	6,718
Other noninterest income	4,875	4,686	13,915	13,813
Total operating income	30,318	29,545	89,400	87,678
Expenses:
Provision for loan losses	2,400	4,435	7,700	11,935
Interest expense	2,803	2,491	8,043	7,106
Salaries and employee benefits	10,967	10,854	32,773	32,838
Other noninterest expenses	7,707	7,517	23,201	21,912
Total operating expenses	23,877	25,297	71,717	73,791
Income (loss) before income taxes	6,441	4,248	17,683	13,887
Income tax expense (benefit)	1,340	1,231	3,620	4,000
Net income	5,101	3,017	14,063	9,887
Total assets	1,499,604	1,484,646	1,499,604	1,484,646	$ 1,509,056
Goodwill	14,425	14,425	14,425	14,425	$ 14,425
Capital expenditures	759	1,107	2,447	2,404
Operating Segments | Retail Banking
Revenues:
Interest income	14,350	12,561	40,719	36,898
Other noninterest income	2,971	2,809	8,486	8,325
Total operating income	17,321	15,370	49,205	45,223
Expenses:
Provision for loan losses				200
Interest expense	1,727	1,539	4,975	4,499
Salaries and employee benefits	6,851	6,601	20,091	19,511
Other noninterest expenses	4,958	4,479	14,776	13,356
Total operating expenses	13,536	12,619	39,842	37,566
Income (loss) before income taxes	3,785	2,751	9,363	7,657
Income tax expense (benefit)	627	650	1,449	1,635
Net income	3,158	2,101	7,914	6,022
Total assets	1,329,507	1,318,835	1,329,507	1,318,835
Goodwill	3,702	3,702	3,702	3,702
Capital expenditures	692	1,042	2,286	1,981
Operating Segments | Mortgage Banking
Revenues:
Interest income	602	460	1,468	1,207
Gains on sales of loans	1,752	2,156	6,399	6,718
Other noninterest income	1,246	1,202	3,349	3,509
Total operating income	3,600	3,818	11,216	11,434
Expenses:
Interest expense	282	176	642	407
Salaries and employee benefits	1,406	1,585	4,409	4,872
Other noninterest expenses	1,248	1,303	3,841	3,901
Total operating expenses	2,936	3,064	8,892	9,180
Income (loss) before income taxes	664	754	2,324	2,254
Income tax expense (benefit)	174	300	620	896
Net income	490	454	1,704	1,358
Total assets	60,592	64,451	60,592	64,451
Capital expenditures	52	46	111	328
Operating Segments | Consumer Finance
Revenues:
Interest income	10,650	11,337	32,230	33,740
Other noninterest income	142	213	552	644
Total operating income	10,792	11,550	32,782	34,384
Expenses:
Provision for loan losses	2,400	4,435	7,700	11,735
Interest expense	2,418	2,131	6,900	6,036
Salaries and employee benefits	2,160	2,209	6,653	7,016
Other noninterest expenses	1,381	1,593	4,076	4,151
Total operating expenses	8,359	10,368	25,329	28,938
Income (loss) before income taxes	2,433	1,182	7,453	5,446
Income tax expense (benefit)	664	469	2,030	2,155
Net income	1,769	713	5,423	3,291
Total assets	300,389	296,835	300,389	296,835
Goodwill	10,723	10,723	10,723	10,723
Capital expenditures	12	16	47	81
Operating Segments | Other
Revenues:
Interest income	4		4
Other noninterest income	516	462	1,528	1,335
Total operating income	520	462	1,532	1,335
Expenses:
Interest expense	291	300	861	862
Salaries and employee benefits	550	459	1,620	1,439
Other noninterest expenses	120	142	508	504
Total operating expenses	961	901	2,989	2,805
Income (loss) before income taxes	(441)	(439)	(1,457)	(1,470)
Income tax expense (benefit)	(125)	(188)	(479)	(686)
Net income	(316)	(251)	(978)	(784)
Total assets	4,396	5,870	4,396	5,870
Capital expenditures	3	3	3	14
Eliminations
Revenues:
Interest income	(1,915)	(1,655)	(5,335)	(4,698)
Total operating income	(1,915)	(1,655)	(5,335)	(4,698)
Expenses:
Interest expense	(1,915)	(1,655)	(5,335)	(4,698)
Total operating expenses	(1,915)	(1,655)	(5,335)	(4,698)
Total assets	$ (195,280)	$ (201,345)	$ (195,280)	$ (201,345)
[1]	Derived from audited consolidated financial statements.

Business Segments - Segment Deb

Business Segments - Segment Debt (Details)	9 Months Ended
	Sep. 30, 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 Contingent Li_3

Commitments and Contingent Liabilities - Loan Commitments (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Standby Letters of Credit
Commitments and Contingent Liabilities
Face amount of asset	$ 15,440	$ 15,460
Loan Commitments
Commitments and Contingent Liabilities
Face amount of asset	$ 244,470	$ 224,500

Commitments and Contingent Li_4

Commitments and Contingent Liabilities - Other (Details) - C&F Mortgage	9 Months Ended
	Sep. 30, 2018
Commitments and Contingent Liabilities
Recourse period for early payment default, minimum	90 days
Recourse period for early payment default, maximum	1 year

Commitments and Contingent Li_5

Commitments and Contingent Liabilities - Changes in Allowance for Indemnifications Losses (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Change in the allowance for indemnification losses
Provision for indemnifications			$ 53	$ 140
Indemnification reserve for recourse provisions
Change in the allowance for indemnification losses
Allowance, beginning of period	$ 2,542	$ 2,391	2,489	2,303
Provision for indemnifications	0	52	53	140
Payments	0	0	0	0
Allowance, end of period	$ 2,542	$ 2,443	$ 2,542	$ 2,443

Derivative Financial Instrume_3

Derivative Financial Instruments (Details) $ in Thousands	9 Months Ended
	Sep. 30, 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	$ 412	$ 166
Matched interest rate swap with borrower | Not designated as hedges
Derivatives and other information
Notional amount	$ 46,136	$ 41,295
Position | position	8	6
Derivative asset	$ 34	$ 284
Derivative Liabilities	2,599	977
Matched interest rate swap with counterparty | Not designated as hedges
Derivatives and other information
Notional amount	$ 46,136	$ 41,295
Position | position	8	6
Derivative asset	$ 2,599	$ 977
Derivative Liabilities	34	284
Interest rate lock commitments/IRLCs | Not designated as hedges
Derivatives and other information
Notional amount	$ 120,659	$ 99,140
Position | position	538	440
Derivative asset	$ 939	$ 528

Other Noninterest Expenses (Det

Other Noninterest Expenses (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Other Noninterest Expenses
Data processing service and maintenance contracts	$ 1,879	$ 1,817	$ 5,524	$ 4,915
Professional fees	634	529	2,152	1,810
Marketing and advertising expenses	379	361	1,222	1,164
Telecommunication expenses	336	329	1,015	975
Travel and educational expenses	257	268	928	845
All other noninterest expenses	2,015	2,305	6,098	6,447
Total Other Noninterest Expenses	$ 5,500	$ 5,609	$ 16,939	$ 16,156