C&F Financial (CFFI) 10-Q 7 Nov 19 2019 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2019	Nov. 06, 2019
Document and Entity Information
Entity Registrant Name	C & F FINANCIAL CORP
Document Type	10-Q
Amendment Flag	false
Entity Central Index Key	0000913341
Entity Filer Category	Accelerated Filer
Entity Current Reporting Status	Yes
Document Period End Date	Sep. 30, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Entity Common Stock, Shares Outstanding		3,423,548
Current Fiscal Year End Date	--12-31
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018	[1]
Assets
Cash and due from banks	$ 10,923	$ 14,138
Interest-bearing deposits in other banks	134,871	100,875
Total cash and cash equivalents	145,794	115,013
Securities—available for sale at fair value, amortized cost of $188,876 and $216,650, respectively	190,869	214,910
Loans held for sale, at fair value	98,357	41,895
Loans, net of allowance for loan losses of $33,218 and $34,023, respectively	1,055,320	1,028,097
Restricted stock, at cost	3,257	3,247
Corporate premises and equipment, net	35,504	37,100
Other real estate owned, net of valuation allowance of $88 and $57, respectively	1,103	246
Accrued interest receivable	6,685	7,436
Goodwill	14,425	14,425
Core deposit and other amortizable intangible assets, net	951	1,142
Bank-owned life insurance	16,348	16,065
Net deferred tax asset	11,615	12,193
Other assets	39,153	29,642
Total assets	1,619,381	1,521,411
Deposits
Noninterest-bearing demand deposits	321,068	271,360
Savings and interest-bearing demand deposits	515,168	563,741
Time deposits	412,344	346,560
Total deposits	1,248,580	1,181,661
Commitments and contingent liabilities (Note 10)
Short-term borrowings	16,859	14,917
Long-term borrowings	119,529	119,529
Trust preferred capital notes	25,272	25,245
Accrued interest payable	1,263	920
Other liabilities	45,817	27,181
Total liabilities	1,457,320	1,369,453
Equity
Common stock ($1.00 par value, 8,000,000 shares authorized, 3,423,327 and 3,497,122 shares issued and outstanding, respectively, includes 137,455 and 139,455 of unvested shares, respectively)	3,286	3,358
Additional paid-in capital	9,345	12,752
Retained earnings	151,183	140,520
Accumulated other comprehensive loss, net	(2,247)	(4,672)
Equity attributable to C&F Financial Corporation	161,567	151,958
Noncontrolling interest	494
Total equity	162,061	151,958
Total liabilities and equity	$ 1,619,381	$ 1,521,411
[1]	Derived from audited consolidated financial statements.

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Consolidated Balance Sheets
Available-for-sale securities, amortized cost	$ 188,876	$ 216,650
Loans, allowance for loan losses	33,218	34,023
Other real estate owned, valuation allowance	$ 88	$ 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	3,423,327	3,497,122
Common stock, shares outstanding	3,423,327	3,497,122
Common stock, unvested shares	137,455	139,455

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Interest income
Interest and fees on loans	$ 22,254	$ 21,673	$ 65,497	$ 63,116
Interest on interest-bearing deposits and federal funds sold	460	527	1,631	1,544
Interest and dividends on securities
U.S. government agencies and corporations	109	90	311	265
Mortgage-backed securities	528	583	1,706	1,694
Tax-exempt obligations of states and political subdivisions	504	675	1,643	2,086
Taxable obligations of states and political subdivisions	86	84	272	229
Other	51	59	159	152
Total interest income	23,992	23,691	71,219	69,086
Interest expense
Savings and interest-bearing deposits	538	411	1,737	1,123
Time deposits	1,868	1,020	4,798	2,957
Borrowings	1,091	1,081	3,322	3,102
Trust preferred capital notes	272	291	867	861
Total interest expense	3,769	2,803	10,724	8,043
Net interest income	20,223	20,888	60,495	61,043
Provision for loan losses	1,800	2,400	6,005	7,700
Net interest income after provision for loan losses	18,423	18,488	54,490	53,343
Noninterest income
Gains on sales of loans	3,205	1,752	8,296	6,399
Service charges on deposit accounts	1,012	1,031	2,874	3,121
Other service charges and fees	1,769	1,296	4,521	3,900
Net gains on maturities and calls of available for sale securities	3	5	8	9
Wealth management services income, net	529	441	1,453	1,325
Interchange income	1,105	981	3,134	2,868
Other	607	1,121	3,249	2,692
Total noninterest income	8,230	6,627	23,535	20,314
Noninterest expenses
Salaries and employee benefits	11,730	10,967	35,132	32,773
Occupancy	2,226	2,207	6,564	6,262
Other	6,346	5,500	17,832	16,939
Total noninterest expenses	20,302	18,674	59,528	55,974
Income before income taxes	6,351	6,441	18,497	17,683
Income tax expense	1,466	1,340	3,999	3,620
Net income	4,885	5,101	14,498	14,063
Less net income attributable to noncontrolling interest	5		4
Net income attributable to C&F Financial Corporation	$ 4,880	$ 5,101	$ 14,494	$ 14,063
Net income per share - basic and diluted	$ 1.42	$ 1.46	$ 4.19	$ 4.02

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income		$ 4,885	$ 5,101	$ 14,498	$ 14,063
Defined benefit plan:
Reclassification of recognized net actuarial losses into net income	[1],[2]	47	32	141	93
Related income tax effects		(10)	(7)	(30)	(20)
Amortization of prior service credit into net income	[1],[2]	(17)	(16)	(51)	(46)
Related income tax effects		4	4	11	10
Defined benefit plan, net of tax		24	13	71	37
Cash flow hedges:
Unrealized holding (losses) gains arising during the period		(563)	(5)	(773)	245
Related income tax effects		145	1	199	(63)
Amortization of hedging gains into net income	[3]	(28)		(28)
Related income tax effects		7		7
Cash flow hedges, net of tax		(439)	(4)	(595)	182
Securities available for sale:
Unrealized holding gains (losses) arising during the period		368	(1,252)	3,741	(4,438)
Related income tax effects		(78)	263	(786)	932
Reclassification of net realized gains into net income	[4]	(3)	(5)	(8)	(9)
Related income tax effects		1	1	2	2
Securities available for sale, net of tax		288	(993)	2,949	(3,513)
Other comprehensive (loss) income, net of tax		(127)	(984)	2,425	(3,294)
Comprehensive income		4,758	4,117	16,923	10,769
Less comprehensive income attributable to noncontrolling interest		5		4
Comprehensive income attributable to C&F Financial Corporation		$ 4,753	$ 4,117	$ 16,919	$ 10,769
[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 7: Employee Benefit Plans,” for additional information.
[2]	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 7: Employee Benefit Plans,” for additional information.These items are included in
[3]	These items are included in “Interest expense - Trust preferred capital notes” on the Consolidated Statements of Income.
[4]	These items are included in “Net gains on maturities and 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 Income (Loss)	Noncontrolling Interest	Total
Balance, beginning of the period at Dec. 31, 2017	$ 3,358	$ 12,800	$ 127,431	$ (1,887)		$ 141,702
Comprehensive income:
Net income			14,063			14,063
Other comprehensive income/(loss)				(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			(3,643)			(3,643)
Balance, end of period at Sep. 30, 2018	3,370	13,619	137,851	(5,181)		149,659
Balance, beginning of the period at Jun. 30, 2018	3,370	13,268	134,012	(4,197)		146,453
Comprehensive income:
Net income			5,101			5,101
Other comprehensive income/(loss)				(984)		(984)
Share-based compensation		316				316
Common stock issued		35				35
Cash dividends declared			(1,262)			(1,262)
Balance, end of period at Sep. 30, 2018	3,370	13,619	137,851	(5,181)		149,659
Balance, beginning of the period at Dec. 31, 2018	3,358	12,752	140,520	(4,672)		151,958	[1]
Comprehensive income:
Net income			14,494		$ 4	14,498
Other comprehensive income/(loss)				2,425		2,425
Issuance of noncontrolling interest					490	490
Share-based compensation		1,073				1,073
Restricted stock vested	18	(18)
Common stock issued	2	105				107
Common stock purchased	(92)	(4,567)				(4,659)
Cash dividends declared			(3,831)			(3,831)
Balance, end of period at Sep. 30, 2019	3,286	9,345	151,183	(2,247)	494	162,061
Balance, beginning of the period at Jun. 30, 2019	3,305	10,107	147,570	(2,120)	489	159,351
Comprehensive income:
Net income			4,880		5	4,885
Other comprehensive income/(loss)				(127)		(127)
Share-based compensation		306				306
Restricted stock vested	2	(2)
Common stock issued	1	36				37
Common stock purchased	(22)	(1,102)				(1,124)
Cash dividends declared			(1,267)			(1,267)
Balance, end of period at Sep. 30, 2019	$ 3,286	$ 9,345	$ 151,183	$ (2,247)	$ 494	$ 162,061
[1]	Derived from audited consolidated financial statements.

Consolidated Statements of Sh_2

Consolidated Statements of Shareholders’ Equity (Parentheticals) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
CONSOLIDATED STATEMENTS OF EQUITY
Cash dividends declared – common stock (in dollars per share)	$ 0.37	$ 0.36	$ 1.11	$ 1.04

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019		Sep. 30, 2018
Operating activities:
Net income	$ 14,498		$ 14,063
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation	2,722		2,345
Provision for loan losses	6,005		7,700
Share-based compensation	1,073		956
Pension expense	487		315
Pension contribution			(3,000)
Net accretion of certain acquisition-related discounts	(2,179)		(2,329)
Accretion of discounts and amortization of premiums on securities, net	1,177		1,349
Amortization of intangible assets	190		360
Net realized gains on maturities and calls of securities available for sale	(8)		(9)
Income from bank-owned life insurance	(250)		(248)
Origination of loans held for sale	(663,787)		(538,704)
Proceeds from sales of loans held for sale	623,049		554,508
Gains on sales of loans held for sale	(8,296)		(6,399)
Other gains and losses	(44)		(152)
Change in other assets and liabilities:
Accrued interest receivable	751		235
Other assets	(3,358)		2,501
Accrued interest payable	343		78
Other liabilities	3,473		2,644
Net cash (used in) provided by operating activities	(24,154)		36,213
Investing activities:
Proceeds from maturities and calls of securities available for sale and payments on mortgage-backed securities	55,593		35,267
Purchases of securities available for sale	(28,988)		(39,192)
Net (purchases) proceeds from sale of restricted stock	(10)		51
Purchases of loans held for investment by non-bank affiliates	(117,261)		(103,759)
Repayments on loans held for investment by non-bank affiliates	93,028		87,644
Net (increase) decrease in retail banking loans held for investment	(7,125)		471
Proceeds from sales of other real estate owned	521
Purchases of corporate premises and equipment	(2,001)		(2,447)
Proceeds from sales of corporate premises and equipment	79		223
Net cash used in investing activities	(6,164)		(21,742)
Financing activities:
Net increase (decrease) in demand and savings deposits	1,135		(11,263)
Net increase (decrease) in time deposits	65,784		(1,711)
Net increase (decrease) in short-term borrowings	1,943		(5,591)
Repayments of long-term borrowings			(2,500)
Net proceeds from issuance of common stock	107		107
Repurchases of common stock	(4,385)
Issuance of noncontrolling interest	490
Cash dividends paid	(3,831)		(3,643)
Other financing activities	(144)		(144)
Net cash provided by (used in) financing activities	61,099		(24,745)
Net increase (decrease) in cash and cash equivalents	30,781		(10,274)
Cash and cash equivalents at beginning of periods	115,013	[1]	119,423
Cash and cash equivalents at end of period	145,794		109,149
Supplemental cash flow disclosures:
Interest paid	10,355		7,938
Income taxes paid	1,020		190
Supplemental disclosure of noncash investing and financing activities
Value of shares withheld at vesting for employee taxes	274		232
Transfers from loans to other real estate owned	496		$ 20
Transfers of property from corporate premises to other real estate owned	$ 835
[1]	Derived from audited consolidated financial statements.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2019
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, 2018. 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 all of the common stock of 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 Mortgage owns a 51 percent interest in C&F Select LLC, which was organized in January 2019 and is also engaged in the business of originating and selling residential mortgages. C&F Finance, acquired in September 2002, is a finance company purchasing automobile, marine 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 9. On August 13, 2019, the Corporation entered into an agreement with Peoples Bankshares, Incorporated (Peoples), pursuant to which Peoples has agreed to merge with and into the Corporation. Peoples and its wholly-owned Virginia chartered commercial banking subsidiary, Peoples Community Bank, serve the Northern Neck area of eastern Virginia through five bank branch locations. Following the proposed merger of Peoples with and into the Corporation, Peoples Community Bank is expected to be merged with and into C&F Bank. Completion of the transaction remains subject to certain conditions, including approval of the transaction by appropriate federal and state banking regulatory agencies and approval of the transaction by Peoples shareholders. Upon completion of the transaction, Peoples shareholders will receive 0.5366 shares of the Corporation’s common stock and $27.00 in cash for each share of Peoples common stock. The stock and cash consideration has an aggregate value of approximately $21.32 million based on the November 6, 2019 closing price of $51.20 per share of the Corporation’s common stock. The Corporation expects to complete the acquisition of Peoples in early 2020. During the third quarter of 2019, C&F Bank consolidated its Bellgrade branch in Midlothian, Virginia into a nearby branch, and reclassified $835,000 of land and buildings from corporate premises, net into other real estate owned. 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 swaps that qualify and are designated as cash flow hedges on the Corporation’s trust preferred capital notes, (2) interest rate swaps with certain qualifying commercial loan customers and dealer counterparties and (3) interest rate contracts arising from mortgage banking activities, including interest rate lock commitments (IRLCs) on mortgage loans and related forward sales of mortgage loans and mortgage backed securities. 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. IRLCs, forward sales contracts and interest rate swaps with loan customers and dealer counterparties are not designated as hedging instruments, and therefore changes in the fair value of these instruments are reported as noninterest income or noninterest expense, as applicable. The Corporation’s derivative financial instruments are described more fully in Note 11. Leases: The Corporation recognizes a lease liability and a right-of-use asset in connection with leases in which it is a lessee, except for leases with a term of twelve months or less. A lease liability represents the Corporation’s obligation to make future payments under lease contracts, and a right-of-use asset represents the Corporation’s right to control the use of the underlying property during the lease term. Lease liabilities and right-of-use assets are recognized upon commencement of a lease and measured as the present value of lease payments over the lease term, discounted at the incremental borrowing rate of the lessee. The Corporation has elected not to separate lease and nonlease components within the same contract and instead to account for the entire contract as a lease. Share-Based Compensation: Share-based compensation expense, net of forfeitures, for the third quarter of 2019 and the first nine months of 2019 was $306,000 ($211,000 after tax) and $1.07 million ($713,000 after tax), respectively, for restricted stock granted during 2014 through 2019. As of September 30, 2019, there was $2.69 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 2019 and 2018 is presented below: 2019 Weighted- Average Grant Date Shares Fair Value Unvested, December 31, 2018 139,455 $ 45.75 Granted 16,670 51.79 Vested (17,990) 41.55 Forfeited (680) 50.44 Unvested, September 30, 2019 137,455 47.01 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 Recently Adopted Accounting Pronouncements: On January 1, 2019, the Corporation adopted Accounting Standards Update (ASU) 2016-02, “Leases (Topic 842)” and related amendments (collectively, ASC 842), which resulted in recognition of a lease liability and right-of-use asset in connection with leases in which the Corporation is the lessee. Under ASC 842, lessor accounting is largely unchanged. The Corporation elected an optional transition method to apply ASC 842 as of the adoption date on a modified retrospective basis. Periods prior to January 1, 2019 have not been restated. Upon adoption, the Corporation recorded a lease liability of approximately $3.14 million for its remaining payment obligations as of January 1, 2019 for leases in effect at that time, excluding leases with an original term of twelve months or less, and a corresponding right-of-use asset. All of the Corporation’s existing leases upon adoption of ASC 842 were classified as operating leases based on the classification of each lease under previous U.S. GAAP; classification of these leases was not reconsidered upon adoption of ASC 842. Refer to Note 5 for further information about the Corporation’s leases. Recent Significant Accounting Pronouncements: In June 2016, the Financial Accounting Standards Board (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. Subsequently, this ASU was amended when the FASB issued ASU 2018-19, “ Codification Improvements to Topic 326, Financial Instruments – Credit Losses, ” ASU 2019-04, “Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments” and ASU 2019-05, “Financial Instruments – Credit Losses (Topic 326): Targeted Transition Relief ,” (collectively, ASC 326). ASC 326 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. In August 2019, the FASB issued a proposed ASU that would provide a deferral of the effective date of ASC 326 for many entities, including some entities that are SEC filers. At its meeting on October 16, 2019, the FASB affirmed its decision to issue a deferral, and an ASU is expected to be issued in the fourth quarter of 2019. Based on the proposed ASU, the Corporation expects that ASC 326 will be effective for the Corporation beginning on January 1, 2023. The amendments of ASC 326, upon adoption, 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 to prepare for and implement changes related to ASC 326 and has gathered historical loan loss data for purposes of evaluating appropriate portfolio segmentation and modeling methods under the standard. The Corporation has performed procedures to validate the historical loan loss data to ensure its suitability and reliability for purposes of developing an estimate of expected credit losses under ASC 326. The Corporation has engaged a vendor to assist in modeling expected lifetime losses under ASC 326. The adoption of ASC 326 will result in significant changes to the Corporation’s consolidated financial statements, which may include changes in the level of the allowance for credit losses that will be considered adequate, a reduction in shareholders’ equity and regulatory capital of C&F Bank, differences in the timing of recognizing changes to the allowance for credit losses and expanded disclosures about the allowance for credit losses. The Corporation has not yet determined an estimate of the effect of these changes. The adoption of the standard will also result in significant changes in the Corporation’s internal control over financial reporting related to the allowance for credit losses. 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, 2019
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, 2019 Gross Gross Amortized Unrealized Unrealized (Dollars in thousands) Cost Gains Losses Fair Value U.S. government agencies and corporations $ 22,204 $ 2 $ (26) $ 22,180 Mortgage-backed securities 88,933 879 (111) 89,701 Obligations of states and political subdivisions 77,739 1,264 (15) 78,988 $ 188,876 $ 2,145 $ (152) $ 190,869 December 31, 2018 Gross Gross Amortized Unrealized Unrealized (Dollars in thousands) Cost Gains Losses Fair Value U.S. government agencies and corporations $ 18,008 $ 1 $ (536) $ 17,473 Mortgage-backed securities 106,787 85 (1,889) 104,983 Obligations of states and political subdivisions 91,855 840 (241) 92,454 $ 216,650 $ 926 $ (2,666) $ 214,910 The amortized cost and estimated fair value of securities at September 30, 2019, 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, 2019 Amortized (Dollars in thousands) Cost Fair Value Due in one year or less $ 37,681 $ 37,796 Due after one year through five years 133,691 135,024 Due after five years through ten years 12,834 13,066 Due after ten years 4,670 4,983 $ 188,876 $ 190,869 The following table presents the gross realized gains and losses on and the proceeds from the 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) 2019 2018 2019 2018 Realized gains from maturities and calls of securities: Gross realized gains $ 3 $ 5 $ 8 $ 10 Gross realized losses — — — (1) Net realized gains $ 3 $ 5 $ 8 $ 9 Proceeds from maturities, calls and paydowns of securities $ 21,954 $ 12,865 $ 55,593 $ 35,267 The Corporation pledges securities primarily to secure public deposits and repurchase agreements. Securities with an aggregate amortized cost of $94.83 million and aggregate fair value of $95.89 million were pledged at September 30, 2019. Securities with an aggregate amortized cost of $110.81 million and an aggregate fair value of $109.83 million were pledged at December 31, 2018. Securities in an unrealized loss position at September 30, 2019, 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 $ 7,442 $ 1 $ 8,821 $ 25 $ 16,263 $ 26 Mortgage-backed securities 10,828 22 13,762 89 24,590 111 Obligations of states and political subdivisions 5,777 6 2,590 9 8,367 15 Total temporarily impaired securities $ 24,047 $ 29 $ 25,173 $ 123 $ 49,220 $ 152 There were 85 debt securities totaling $49.22 million considered temporarily impaired at September 30, 2019. The primary cause of the temporary impairments in the Corporation's investments in debt securities was fluctuations in interest rates, especially in debt securities purchased prior to 2018. The value of debt securities declines as interest rates rise, and interest rates were higher at September 30, 2019 than at the time these securities were purchased. 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, 2019, approximately 95 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 an unrealized loss position, approximately 97 percent were rated “A” or better by S&P or Moody’s, as measured by market value, at September 30, 2019. For the approximately three percent not rated “A” or better, as measured by market value at September 30, 2019, 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, 2019 and no other-than-temporary impairment loss has been recognized in net income. Securities in an unrealized loss position at December 31, 2018, by duration of the period of the unrealized loss, are shown below. Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Loss Value Loss Value Loss U.S. government agencies and corporations $ 997 $ 1 $ 15,725 $ 535 $ 16,722 $ 536 Mortgage-backed securities 17,934 132 72,830 1,757 90,764 1,889 Obligations of states and political subdivisions 9,492 29 20,555 212 30,047 241 Total temporarily impaired securities $ 28,423 $ 162 $ 109,110 $ 2,504 $ 137,533 $ 2,666 The Corporation’s investment in restricted stock totaled $3.26 million at September 30, 2019 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 did not consider its investment in restricted stock to be other-than-temporarily impaired at September 30, 2019 and no impairment has been recognized.

Loans

Loans	9 Months Ended
	Sep. 30, 2019
Loans
Loans	NOTE 3: Loans Major classifications of loans are summarized as follows: September 30, December 31, (Dollars in thousands) 2019 2018 Real estate – residential mortgage $ 179,960 $ 184,901 Real estate – construction 1 62,554 54,461 Commercial, financial and agricultural 2 466,349 455,935 Equity lines 52,411 55,660 Consumer 13,521 15,009 Consumer finance 313,743 296,154 1,088,538 1,062,120 Less allowance for loan losses (33,218) (34,023) Loans, net $ 1,055,320 $ 1,028,097 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 $255,000 and $275,000 of demand deposit overdrafts at September 30, 2019 and December 31, 2018, 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 that were recorded at fair value at the acquisition date in the Consolidated Balance Sheets are as follows: September 30, 2019 December 31, 2018 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 $ 6,658 $ 32,920 $ 39,578 $ 9,734 $ 38,768 $ 48,502 Carrying amount Real estate – residential mortgage $ 110 $ 7,216 $ 7,326 $ 284 $ 8,823 $ 9,107 Commercial, financial and agricultural 1 433 15,588 16,021 1,461 18,982 20,443 Equity lines 35 8,520 8,555 90 9,063 9,153 Consumer — 3 3 — 6 6 Total acquired loans $ 578 $ 31,327 $ 31,905 $ 1,835 $ 36,874 $ 38,709 1 Includes acquired loans classified by the Corporation as commercial real estate lending and commercial business lending. The following table presents a summary of the change in the accretable yield of loans classified as purchased credit impaired (PCI): Nine Months Ended September 30, (Dollars in thousands) 2019 2018 Accretable yield, balance at beginning of period $ 5,987 $ 7,304 Accretion (2,745) (2,892) Reclassification of nonaccretable difference due to improvement in expected cash flows 1,286 1,410 Other changes, net 581 (324) Accretable yield, balance at end of period $ 5,109 $ 5,498 Loans on nonaccrual status were as follows: September 30, December 31, (Dollars in thousands) 2019 2018 Real estate – residential mortgage $ 563 $ 594 Commercial, financial and agricultural: Commercial business lending — 24 Equity lines 302 883 Consumer 119 — Consumer finance 527 712 Total loans on nonaccrual status $ 1,511 $ 2,213 The past due status of loans as of September 30, 2019 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 Real estate – residential mortgage $ 1,120 $ 163 $ 352 $ 1,635 $ 110 $ 178,215 $ 179,960 $ 318 Real estate – construction: Construction lending — — — — — 48,164 48,164 — Consumer lot lending — — — — — 14,390 14,390 — Commercial, financial and agricultural: Commercial real estate lending 1,331 1,233 315 2,879 433 309,072 312,384 315 Land acquisition and development lending — — — — — 41,241 41,241 — Builder line lending — — — — — 29,606 29,606 — Commercial business lending 125 120 — 245 — 82,873 83,118 — Equity lines 73 97 397 567 35 51,809 52,411 92 Consumer 20 7 7 34 — 13,487 13,521 7 Consumer finance 8,841 1,558 527 10,926 — 302,817 313,743 — Total $ 11,510 $ 3,178 $ 1,598 $ 16,286 $ 578 $ 1,071,674 $ 1,088,538 $ 732 1 For the purposes of the table above, “Current” includes loans that are 1-29 days past due. The table above includes nonaccrual loans that are current of $431,000, 30-59 days past due of $213,000 and 90+ days past due of $867,000. The past due status of loans as of December 31, 2018 was as follows: 90+ Days 30 - 59 Days 60 - 89 Days 90+ Days Total Past Due and (Dollars in thousands) Past Due Past Due Past Due Past Due PCI Current 1 Total Loans Accruing Real estate – residential mortgage $ 1,221 $ — $ 37 $ 1,258 $ 284 $ 183,359 $ 184,901 $ 9 Real estate – construction: Construction lending — — — — — 42,051 42,051 — Consumer lot lending — — — — — 12,410 12,410 — Commercial, financial and agricultural: Commercial real estate lending — — 315 315 1,461 309,057 310,833 315 Land acquisition and development lending — — — — — 43,404 43,404 — Builder line lending — — — — — 31,201 31,201 — Commercial business lending 163 19 24 206 — 70,291 70,497 — Equity lines 46 584 325 955 90 54,615 55,660 — Consumer 31 — — 31 — 14,978 15,009 — Consumer finance 11,419 1,965 712 14,096 — 282,058 296,154 — Total $ 12,880 $ 2,568 $ 1,413 $ 16,861 $ 1,835 $ 1,043,424 $ 1,062,120 $ 324 1 For the purposes of the table above, “Current” includes loans that are 1-29 days past due. The table above includes nonaccrual loans that are current of $458,000, 30-59 days past due of $97,000, 60‑89 days past due of $560,000 and 90+ days past due of $1.10 million. Loan modifications that were classified as troubled debt restructurings (TDRs) and the recorded investment in those loans at the time of their modification, during the three and nine months ended September 30, 2019 and 2018 were as follows: Three Months Ended September 30, 2019 2018 Number of Recorded Number of Recorded (Dollars in thousands) Loans Investment Loans Investment Real estate – residential mortgage 2 $ 95 — $ — Consumer — — 1 5 Total 2 $ 95 1 $ 5 Nine Months Ended September 30, 2019 2018 Number of Recorded Number of Recorded (Dollars in thousands) Loans Investment Loans Investment Real estate – residential mortgage 2 $ 95 — $ — Consumer 1 121 1 $ 5 Total 3 $ 216 1 $ 5 Both TDRs during the three months ended September 30, 2019 included a modification of the loan’s payment structure. One TDR during the nine months ended September 30, 2019 included a modification of the loan’s interest rate. One TDR during the three and nine months ended September 30, 2018 included a modification of the loan’s interest rate. All TDRs are considered impaired loans and are individually evaluated in the determination of the allowance for loan losses. 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. The specific reserve associated with a TDR is reevaluated when a TDR payment default occurs. There were no TDR payment defaults during the nine months ended September 30, 2019 and 2018. Impaired loans, which included TDRs of $4.53 million, and the related allowance at September 30, 2019 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 $ 2,921 $ 1,279 $ 1,525 $ 81 $ 2,904 $ 105 Commercial, financial and agricultural: Commercial real estate lending 1,588 7 1,564 75 1,601 62 Equity lines 225 30 187 187 217 2 Consumer 131 — 123 119 124 — Total $ 4,865 $ 1,316 $ 3,399 $ 462 $ 4,846 $ 169 Impaired loans, which included TDRs of $5.45 million, and the related allowance at December 31, 2018 were as follows: Recorded Recorded Investment Investment Average Unpaid in Loans in Loans Balance- Interest Principal without with Related Impaired Income (Dollars in thousands) Balance Specific Reserve Specific Reserve Allowance Loans Recognized Real estate – residential mortgage $ 3,057 $ 1,288 $ 1,677 $ 92 $ 3,056 $ 142 Commercial, financial and agricultural: Commercial real estate lending 2,468 1,498 927 10 2,653 132 Commercial business lending 33 25 — — 26 — Equity lines 365 31 326 326 359 2 Consumer 5 — 5 — 5 — Total $ 5,928 $ 2,842 $ 2,935 $ 428 $ 6,099 $ 276

Allowance for Loan Losses

Allowance for Loan Losses	9 Months Ended
	Sep. 30, 2019
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, 2019: 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, 2018 $ 2,246 $ 727 $ 6,688 $ 1,106 $ 257 $ 22,999 $ 34,023 Provision (credited) charged to operations (85) 77 103 (214) 229 5,895 6,005 Loans charged off (46) — (29) (19) (261) (10,092) (10,447) Recoveries of loans previously charged off 20 — 4 — 173 3,440 3,637 Balance at September 30, 2019 $ 2,135 $ 804 $ 6,766 $ 873 $ 398 $ 22,242 $ 33,218 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 (credited) charged 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, as of September 30, 2019, the balance of the allowance for loan losses and the balance of loans by impairment methodology. Real Estate Commercial, Residential Real Estate Financial & Equity Consumer (Dollars in thousands) Mortgage Construction Agricultural Lines Consumer Finance Total Allowance balance attributable to loans: Individually evaluated for impairment $ 81 $ — $ 75 $ 187 $ 119 $ — $ 462 Collectively evaluated for impairment 2,054 804 6,691 686 279 22,242 32,756 Acquired loans - PCI — — — — — — — Total allowance $ 2,135 $ 804 $ 6,766 $ 873 $ 398 $ 22,242 $ 33,218 Loans: Individually evaluated for impairment $ 2,804 $ — $ 1,571 $ 217 $ 123 $ — $ 4,715 Collectively evaluated for impairment 177,046 62,554 464,345 52,159 13,398 313,743 1,083,245 Acquired loans - PCI 110 — 433 35 — — 578 Total loans $ 179,960 $ 62,554 $ 466,349 $ 52,411 $ 13,521 $ 313,743 $ 1,088,538 The following table presents, as of December 31, 2018, the balance of the 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 balance attributable to loans: Individually evaluated for impairment $ 92 $ — $ 10 $ 326 $ — $ — $ 428 Collectively evaluated for impairment 2,154 727 6,678 780 257 22,999 33,595 Acquired loans - PCI — — — — — — — Total allowance $ 2,246 $ 727 $ 6,688 $ 1,106 $ 257 $ 22,999 $ 34,023 Loans: Individually evaluated for impairment $ 2,965 $ — $ 2,450 $ 357 $ 5 $ — $ 5,777 Collectively evaluated for impairment 181,652 54,461 452,024 55,213 15,004 296,154 1,054,508 Acquired loans - PCI 284 — 1,461 90 — — 1,835 Total loans $ 184,901 $ 54,461 $ 455,935 $ 55,660 $ 15,009 $ 296,154 $ 1,062,120 Loans by credit quality indicators as of September 30, 2019 were as follows: Special Substandard (Dollars in thousands) Pass Mention Substandard Nonaccrual Total 1 Real estate – residential mortgage $ 176,844 $ 1,313 $ 1,240 $ 563 $ 179,960 Real estate – construction: Construction lending 48,164 — — — 48,164 Consumer lot lending 14,390 — — — 14,390 Commercial, financial and agricultural: Commercial real estate lending 311,126 867 391 — 312,384 Land acquisition and development lending 32,017 9,224 — — 41,241 Builder line lending 29,606 — — — 29,606 Commercial business lending 82,673 376 69 — 83,118 Equity lines 51,699 237 173 302 52,411 Consumer 13,401 — 1 119 13,521 $ 759,920 $ 12,017 $ 1,874 $ 984 $ 774,795 1 At September 30, 2019, the Corporation did not have any loans classified as Doubtful or Loss. Non- (Dollars in thousands) Performing Performing Total Consumer finance $ 313,216 $ 527 $ 313,743 Loans by credit quality indicators as of December 31, 2018 were as follows: Special Substandard (Dollars in thousands) Pass Mention Substandard Nonaccrual Total 1 Real estate – residential mortgage $ 180,232 $ 2,832 $ 1,243 $ 594 $ 184,901 Real estate – construction: Construction lending 42,051 — — — 42,051 Consumer lot lending 12,410 — — — 12,410 Commercial, financial and agricultural: Commercial real estate lending 306,578 3,801 454 — 310,833 Land acquisition and development lending 33,156 10,248 — — 43,404 Builder line lending 31,201 — — — 31,201 Commercial business lending 69,897 576 — 24 70,497 Equity lines 54,289 389 99 883 55,660 Consumer 14,998 5 6 — 15,009 $ 744,812 $ 17,851 $ 1,802 $ 1,501 $ 765,966 1 At December 31, 2018, the Corporation did not have any loans classified as Doubtful or Loss. Non- (Dollars in thousands) Performing Performing Total Consumer finance $ 295,442 $ 712 $ 296,154

Leases

Leases	9 Months Ended
	Sep. 30, 2019
Leases
Leases	NOTE 5: Leases The Corporation’s leases comprise primarily leases of real estate and office equipment in which the Corporation is the lessee, and all of which are classified as operating leases. Lease cost for the three and nine months ended September 30, 2019 is set forth in the table below. Three Months Ended Nine Months Ended (Dollars in thousands) September 30, 2019 September 30, 2019 Operating lease cost $ 422 $ 1,256 Short-term lease cost 30 98 Variable lease cost 19 37 Total lease cost $ 471 $ 1,391 Variable lease payments primarily represent payments for common area maintenance related to real estate leases and taxes and fees related to equipment leases. Cash paid for amounts included in the measurement of lease liabilities during the three and nine months ended September 30, 2019 were $427,000 and $1.16 million, respectively. As of September 30, the weighted average remaining lease term and discount rate for the Corporation’s leases were 3.0 years and 3.3%, respectively. Right-of-use assets and lease liabilities of $3.17 million each were included in other assets and other liabilities, respectively, as of September 30, 2019. During the three and nine months ended September 30, 2019, the Corporation obtained right-of-use assets in exchange for lease liabilities of $72,000 and $1.12 million, respectively. The Corporation adopted ASC 842 effective January 1, 2019. Prior to January 1, 2019, the Corporation measured lease expense in accordance with FASB Accounting Standards Codification (ASC) Topic 840. During the three and nine months ended September 30, 2018, the Corporation recognized lease expense of $344,000 and $1.28 million, respectively. Certain of the Corporation’s leases contain options to extend the lease term beyond the initial term. Options to extend the lease term are recognized as part of the Corporation’s lease liabilities and right-of-use assets at the commencement of a lease to the extent the Corporation is reasonably certain to exercise such options. Maturities of the Corporation’s lease liabilities are set forth in the table below. As of (Dollars in thousands) September 30, 2019 2019 $ 282 2020 1,497 2021 902 2022 288 2023 126 Thereafter 225 Total 3,320 Imputed interest (149) Lease liabilities $ 3,171 The table above excludes payments of $4.94 million related to two lease agreements that have been executed where the Corporation has not obtained control of the real estate properties under lease as of September 30, 2019 and has therefore not recognized a lease liability or right-of-use asset.

Equity, Other Comprehensive Inc

Equity, Other Comprehensive Income and Earnings Per Share	9 Months Ended
	Sep. 30, 2019
Equity, Other Comprehensive Income and Earnings Per Share
Equity, Other Comprehensive Income and Earnings Per Share	NOTE 6: Equity, Other Comprehensive Income and Earnings Per Share Equity and Noncontrolling Interest During the third quarter and first nine months of 2019, the Corporation repurchased 21,337 and 86,523 shares of its common stock, respectively, for an aggregate cost of $1.10 million and $4.39 million, respectively, under share repurchase programs authorized by its Board of Directors. Additionally during the first nine months of 2019 and 2018, the Corporation withheld 5,341 shares and 3,947 shares of its common stock, respectively, from employees to satisfy tax withholding obligations upon vesting of restricted stock. In the first quarter of 2019, C&F Select LLC, a subsidiary of C&F Mortgage, issued a 49 percent ownership interest to an unrelated third party in exchange for $490,000. The holder of this noncontrolling interest financed the investment through a loan obtained from C&F Bank. Accumulated Other Comprehensive Loss The following table presents the cumulative balances of the components of accumulated other comprehensive loss, net of deferred taxes of $628,000 and $1.23 million as of September 30, 2019 and December 31, 2018, respectively. September 30, December 31, (Dollars in thousands) 2019 2018 Net unrealized gains (losses) on securities $ 1,575 $ (1,375) Net unrecognized (losses) gains on cash flow hedges (381) 215 Net unrecognized losses on defined benefit plan (3,441) (3,512) Total accumulated other comprehensive loss $ (2,247) $ (4,672) Earnings Per Share (EPS) The components of the Corporation’s EPS calculations are as follows: Three Months Ended September 30, (Dollars in thousands) 2019 2018 Net income attributable to C&F Financial Corporation $ 4,880 $ 5,101 Weighted average shares outstanding — basic and diluted 3,430,298 3,503,371 Nine Months Ended September 30, (Dollars in thousands) 2019 2018 Net income attributable to C&F Financial Corporation $ 14,494 $ 14,063 Weighted average shares outstanding - basic and diluted 3,459,191 3,502,550 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 equal to dividends on the Corporation’s common stock. Accordingly, the weighted average number of shares used in the calculation of basic and diluted EPS includes both vested and unvested shares outstanding.

Employee Benefit Plans

Employee Benefit Plans	9 Months Ended
	Sep. 30, 2019
Employee Benefit Plans
Employee Benefit Plans	NOTE 7: Employee Benefit Plans The following table summarizes the components of net periodic benefit cost for the Bank’s non-contributory cash balance pension plan. Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2019 2018 2019 2018 Components of net periodic benefit cost: Service cost, included in salaries and employee benefits $ 305 $ 309 $ 914 $ 923 Other components of net periodic benefit cost: Interest cost 152 138 456 384 Expected return on plan assets (324) (373) (973) (1,039) Amortization of prior service credit (17) (16) (51) (46) Recognized net actuarial losses 47 32 141 93 Other components of net periodic benefit cost, included in other noninterest income (142) (219) (427) (608) Net periodic benefit cost $ 163 $ 90 $ 487 $ 315

Fair Value of Assets and Liabil

Fair Value of Assets and Liabilities	9 Months Ended
	Sep. 30, 2019
Fair Value of Assets and Liabilities
Fair Value of Assets and Liabilities	NOTE 8: 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 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, 2019 and December 31, 2018, 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. 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 relative to-be-announced mortgage-backed securities (TBA securities) or other benchmark prices. TBA securities 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. Fixed-rate securities issued by the Small Business Association 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. 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/liability – cash flow hedges. The Corporation recognizes cash flow hedges at fair value. The fair value of the Corporation’s cash flow hedges is determined using the discounted cash flow method. All of the Corporation’s cash flow hedges are classified as Level 2. Derivative asset/liability – forward sales of TBA securities. The Corporation recognizes forward sales of TBA securities at fair value. The fair value of forward sales of TBA securities is based on prices obtained from market makers and live trading systems for TBA securities of similar issuer programs, coupons and maturities. All of the Corporation’s forward sales of TBA securities 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, 2019 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 $ — $ 22,180 $ — $ 22,180 Mortgage-backed securities — 89,701 — 89,701 Obligations of states and political subdivisions — 78,988 — 78,988 Total securities available for sale — 190,869 — 190,869 Loans held for sale — 98,357 — 98,357 Derivatives IRLC — 1,760 — 1,760 Interest rate swaps on loans — 3,484 — 3,484 Total assets $ — $ 294,470 $ — $ 294,470 Liabilities: Derivatives Interest rate swaps on loans $ — $ 3,484 $ — $ 3,484 Cash flow hedges — 592 — 592 Forward sales of TBA securities — 56 — 56 Total liabilities $ — $ 4,132 $ — $ 4,132 December 31, 2018 Fair Value Measurements Using Assets/Liabilities at (Dollars in thousands) Level 1 Level 2 Level 3 Fair Value Assets: Securities available for sale U.S. government agencies and corporations $ — $ 17,473 $ — $ 17,473 Mortgage-backed securities — 104,983 — 104,983 Obligations of states and political subdivisions — 92,454 — 92,454 Total securities available for sale — 214,910 — 214,910 Loans held for sale — 41,895 — 41,895 Derivatives IRLC — 636 — 636 Interest rate swaps on loans — 1,607 — 1,607 Cash flow hedges — 289 — 289 Total assets $ — $ 259,337 $ — $ 259,337 Liabilities: Derivatives - interest rate swaps on loans $ — $ 1,607 $ — $ 1,607 Total liabilities $ — $ 1,607 $ — $ 1,607 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, 2019 Fair Value Measurements Using Assets at Fair (Dollars in thousands) Level 1 Level 2 Level 3 Value Impaired loans, net $ — $ — $ 102 $ 102 Other real estate owned, net — — 268 268 Total $ — $ — $ 370 $ 370 December 31, 2018 Fair Value Measurements Using Assets at Fair (Dollars in thousands) Level 1 Level 2 Level 3 Value Impaired loans, net $ — $ — $ 102 $ 102 Other real estate owned, net — — 246 246 Total $ — $ — $ 348 $ 348 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, 2019 (Dollars in thousands) Fair Value Valuation Technique(s) Unobservable Inputs Range of Inputs Impaired loans, net $ 102 Appraisals Discount to reflect current market conditions and estimated selling costs 30% Other real estate owned, net 268 Appraisals Discount to reflect current market conditions and estimated selling costs 33%-75% Total $ 370 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. The Corporation uses the exit 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, 2019 Using Total Fair (Dollars in thousands) Value Level 1 Level 2 Level 3 Value Financial assets: Cash and short-term investments $ 145,794 $ 145,794 $ — $ — $ 145,794 Securities available for sale 190,869 — 190,869 — 190,869 Loans, net 1,055,320 — — 1,061,512 1,061,512 Loans held for sale 98,357 — 98,357 — 98,357 Derivatives IRLC 1,760 — 1,760 — 1,760 Interest rate swaps on loans 3,484 — 3,484 — 3,484 Bank-owned life insurance 16,348 — 16,348 — 16,348 Accrued interest receivable 6,685 6,685 — — 6,685 Financial liabilities: Demand deposits 836,236 836,236 — — 836,236 Time deposits 412,344 — 412,374 — 412,374 Borrowings 161,660 — 155,269 — 155,269 Derivatives Cash flow hedges 592 — 592 — 592 Interest rate swaps on loans 3,484 — 3,484 — 3,484 Forward sales of TBA securities 56 — 56 — 56 Accrued interest payable 1,263 1,263 — — 1,263 Carrying Fair Value Measurements at December 31, 2018 Using Total Fair (Dollars in thousands) Value Level 1 Level 2 Level 3 Value Financial assets: Cash and short-term investments $ 115,013 $ 115,013 $ — $ — $ 115,013 Securities available for sale 214,910 — 214,910 — 214,910 Loans, net 1,028,097 — — 1,021,145 1,021,145 Loans held for sale 41,895 — 41,895 — 41,895 Derivatives IRLC 636 — 636 — 636 Interest rate swaps on loans 1,607 — 1,607 — 1,607 Cash flow hedges 289 — 289 — 289 Bank-owned life insurance 16,065 — 16,065 — 16,065 Accrued interest receivable 7,436 7,436 — — 7,436 Financial liabilities: Demand deposits 835,101 835,101 — — 835,101 Time deposits 346,560 — 343,507 — 343,507 Borrowings 159,691 — 152,015 — 152,015 Derivatives - interest rate swaps on loans 1,607 — 1,607 — 1,607 Accrued interest payable 920 920 — — 920

Business Segments

Business Segments	9 Months Ended
	Sep. 30, 2019
Business Segments
Business Segments	NOTE 9: 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, 2019 Retail Mortgage Consumer (Dollars in thousands) Banking Banking Finance Other Eliminations Consolidated Revenues: Interest income $ 15,060 $ 814 $ 10,442 $ — $ (2,324) $ 23,992 Gains on sales of loans — 3,205 — — — 3,205 Other noninterest income 2,874 1,426 132 593 — 5,025 Total operating income 17,934 5,445 10,574 593 (2,324) 32,222 Expenses: Provision for loan losses — — 1,800 — — 1,800 Interest expense 2,684 541 2,596 272 (2,324) 3,769 Salaries and employee benefits 7,173 1,742 2,233 582 — 11,730 Other noninterest expenses 5,224 1,526 1,334 488 — 8,572 Total operating expenses 15,081 3,809 7,963 1,342 (2,324) 25,871 Income (loss) before income taxes 2,853 1,636 2,611 (749) — 6,351 Income tax expense (benefit) 460 426 710 (130) — 1,466 Net income (loss) $ 2,393 $ 1,210 $ 1,901 $ (619) $ — $ 4,885 Total assets $ 1,436,986 $ 115,547 $ 316,158 $ 6,000 $ (255,310) $ 1,619,381 Goodwill $ 3,702 $ — $ 10,723 $ — $ — $ 14,425 Capital expenditures $ 453 $ 60 $ 17 $ — $ — $ 530 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 Nine Months Ended September 30, 2019 Retail Mortgage Consumer (Dollars in thousands) Banking Banking Finance Other Eliminations Consolidated Revenues: Interest income $ 44,803 $ 1,833 $ 30,952 $ 4 $ (6,373) $ 71,219 Gains on sales of loans — 8,296 — — — 8,296 Other noninterest income 8,899 4,232 465 1,643 — 15,239 Total operating income 53,702 14,361 31,417 1,647 (6,373) 94,754 Expenses: Provision for loan losses 110 — 5,895 — — 6,005 Interest expense 7,352 1,113 7,765 867 (6,373) 10,724 Salaries and employee benefits 21,718 5,133 6,581 1,700 — 35,132 Other noninterest expenses 15,267 4,105 4,120 904 — 24,396 Total operating expenses 44,447 10,351 24,361 3,471 (6,373) 76,257 Income (loss) before income taxes 9,255 4,010 7,056 (1,824) — 18,497 Income tax expense (benefit) 1,501 1,051 1,921 (474) — 3,999 Net income (loss) $ 7,754 $ 2,959 $ 5,135 $ (1,350) $ — $ 14,498 Total assets $ 1,436,986 $ 115,547 $ 316,158 $ 6,000 $ (255,310) $ 1,619,381 Goodwill $ 3,702 $ — $ 10,723 $ — $ — $ 14,425 Capital expenditures $ 1,741 $ 136 $ 57 $ 67 $ — $ 2,001 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 In the third quarter and first nine months of 2019, the Corporation recorded merger related expenses of $409,000 ($389,000 after income taxes) in connection with its pending acquisition of Peoples, of which $104,000 ($89,000 after income taxes) was allocated to the retail banking segment and the remainder was recorded as a holding company expense. The retail banking segment extends two warehouse lines 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 a spread ranging from 50 basis points to 175 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, 2019
Commitments and Contingent Liabilities
Commitments and Contingent Liabilities	NOTE 10: 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. The Corporation uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments. Collateral is obtained based on management’s credit assessment of the customer. 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 Bank evaluates each customer’s creditworthiness on a case-by-case basis. The amount of loan commitments at the Bank was $254.17 million at September 30, 2019 and $244.17 million at December 31, 2018, which does not include IRLCs at C&F Mortgage, which are discussed in Note 11. 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 $18.51 million at September 30, 2019 and $19.34 million at December 31, 2018. 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 allowance for indemnifications that represents management’s estimate of losses that are probable of arising under these recourse provisions. As performance data for loans that have been sold is not made available to C&F Mortgage by the counterparties, the evaluation of potential losses is inherently subjective. A schedule of expected losses on loans with claims or indemnifications is maintained to ensure the reserve is adequate to cover estimated losses. The allowance for indemnifications was $2.47 million at September 30, 2019 and $2.54 million at December 31, 2018.

Derivative Financial Instrument

Derivative Financial Instruments	9 Months Ended
	Sep. 30, 2019
Derivative Financial Instruments
Derivative Financial Instruments	NOTE 11: Derivative Financial Instruments The Corporation uses derivative financial instruments 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 interest rate swaps as hedging instruments in qualifying cash flow hedges. The changes in fair value of these designated hedging instruments is reported as a component of other comprehensive income. Derivative contracts that are not designated in a qualifying hedging relationship include customer accommodation loan swaps and contracts related to mortgage banking activities. Cash flow hedges . The Corporation designates interest rate swaps 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. These interest rate swaps are derivative financial instruments that manage the risk of variability in cash flows by exchanging variable-rate interest payments on a notional amount of the Corporation’s 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 variable-rate interest payments, and the Corporation assesses the effectiveness of each hedging relationship quarterly. If the Corporation determines that a cash flow hedge is no longer highly effective, future changes in the fair value of the hedging instrument would be reported in earnings. As of September 30, 2019, 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 June 2024 and June 2029. 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. Unrealized gains or losses recorded in other comprehensive income related to cash flow hedges are reclassified into earnings in the same period(s) during which the hedged interest payments affect earnings. When a designated hedging instrument is terminated and the hedged interest payments remain probable of occurring, any remaining unrecognized gain or loss in other comprehensive income is reclassified into earnings in the period(s) during which the forecasted interest payments affect earnings. Amounts reclassified into earnings and interest receivable or payable under designated interest rate swaps are reported in interest expense. The Corporation does not expect any unrealized losses 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 offsetting 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 are derivative financial instruments and are reported at fair value in other assets and other liabilities in the Consolidated Balance Sheets. Changes in the fair value of loan swaps are recorded in other noninterest expense and sum to zero because of the offsetting terms of swaps with borrowers and swaps with dealer counterparties. Mortgage banking . C&F Mortgage enters into IRLCs with customers to originate loans for which the interest rates are determined (or “locked”) prior to funding. C&F Mortgage is exposed to interest rate risk by holding fixed-rate IRLCs and mortgage loans from the time that interest rates are locked until the loans are sold in the secondary market. C&F Mortgage mitigates this interest rate risk by either (1) entering into forward sales contracts with investors at the time that interest rates are locked for mortgage loans to be delivered on a best efforts basis or (2) entering into forward sales contracts for unspecified mortgage backed securities (TBA securities) until it can enter into forward sales contracts with investors for mortgage loans to be delivered on a mandatory basis. IRLCs, forward sales of loans and forward sales of TBA securities are derivative financial instruments and are reported at fair value in other assets and other liabilities in the Consolidated Balance Sheets. Changes in the fair value of mortgage banking derivatives are recorded as a component of gains on sales of loans. At September 30, 2019, C&F Mortgage had best-efforts forward sales contracts for $84.22 million of its mortgage loans held for sale and $95.99 million of IRLCs offered to customers, and it had mandatory-delivery forward sales contracts for $5.44 million of its mortgage loans held for sale. At December 31, 2018, C&F Mortgage had best-efforts forward sales contracts for all of its mortgage loans held for sale and IRLCs. The following tables summarize key elements of the Corporation’s derivative instruments other than forward sales of mortgage loans. The fair values of forward sales of mortgage loans were not material to the consolidated financial statements of the Corporation at September 30, 2019 or December 31, 2018. September 30, 2019 Notional Collateral (Dollars in thousands) Amount Assets Liabilities Pledged 1 Cash flow hedges: Interest rate swap contracts $ 25,000 $ — $ 592 $ — Not designated as hedges: Customer-related interest rate swap contracts: Matched interest rate swaps with borrower 66,305 3,484 — — Matched interest rate swaps with counterparty 66,305 — 3,484 — Mortgage banking contracts: IRLCs 116,927 1,760 — — Forward sales of TBA securities 23,250 — 56 — December 31, 2018 Notional Collateral (Dollars in thousands) Amount Assets Liabilities Pledged 1 Cash flow hedges: Interest rate swap contracts $ 25,000 $ 289 $ — $ — Not designated as hedges: Customer-related interest rate swap contracts: Matched interest rate swaps with borrower 45,961 216 1,391 — Matched interest rate swaps with counterparty 45,961 1,391 216 — Mortgage banking contracts: IRLCs 44,324 636 — — 1 Collateral pledged may be comprised of cash or securities.

Other Noninterest Expenses

Other Noninterest Expenses	9 Months Ended
	Sep. 30, 2019
Other Noninterest Expenses
Other Noninterest Expenses	NOTE 12: 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) 2019 2018 2019 2018 Data processing fees $ 2,093 $ 1,879 $ 5,989 $ 5,524 Professional fees 1,061 634 2,414 2,152 Marketing and advertising expenses 485 379 1,293 1,222 Travel and educational expenses 290 257 996 928 Telecommunication expenses 337 336 985 1,015 All other noninterest expenses 2,080 2,015 6,155 6,098 Total other noninterest expenses $ 6,346 $ 5,500 $ 17,832 $ 16,939

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2019
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, 2018. 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 all of the common stock of 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 Mortgage owns a 51 percent interest in C&F Select LLC, which was organized in January 2019 and is also engaged in the business of originating and selling residential mortgages. C&F Finance, acquired in September 2002, is a finance company purchasing automobile, marine 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 9. On August 13, 2019, the Corporation entered into an agreement with Peoples Bankshares, Incorporated (Peoples), pursuant to which Peoples has agreed to merge with and into the Corporation. Peoples and its wholly-owned Virginia chartered commercial banking subsidiary, Peoples Community Bank, serve the Northern Neck area of eastern Virginia through five bank branch locations. Following the proposed merger of Peoples with and into the Corporation, Peoples Community Bank is expected to be merged with and into C&F Bank. Completion of the transaction remains subject to certain conditions, including approval of the transaction by appropriate federal and state banking regulatory agencies and approval of the transaction by Peoples shareholders. Upon completion of the transaction, Peoples shareholders will receive 0.5366 shares of the Corporation’s common stock and $27.00 in cash for each share of Peoples common stock. The stock and cash consideration has an aggregate value of approximately $21.32 million based on the November 6, 2019 closing price of $51.20 per share of the Corporation’s common stock. The Corporation expects to complete the acquisition of Peoples in early 2020. During the third quarter of 2019, C&F Bank consolidated its Bellgrade branch in Midlothian, Virginia into a nearby branch, and reclassified $835,000 of land and buildings from corporate premises, net into other real estate owned.
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 swaps that qualify and are designated as cash flow hedges on the Corporation’s trust preferred capital notes, (2) interest rate swaps with certain qualifying commercial loan customers and dealer counterparties and (3) interest rate contracts arising from mortgage banking activities, including interest rate lock commitments (IRLCs) on mortgage loans and related forward sales of mortgage loans and mortgage backed securities. 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. IRLCs, forward sales contracts and interest rate swaps with loan customers and dealer counterparties are not designated as hedging instruments, and therefore changes in the fair value of these instruments are reported as noninterest income or noninterest expense, as applicable. The Corporation’s derivative financial instruments are described more fully in Note 11.
Leases	Leases: The Corporation recognizes a lease liability and a right-of-use asset in connection with leases in which it is a lessee, except for leases with a term of twelve months or less. A lease liability represents the Corporation’s obligation to make future payments under lease contracts, and a right-of-use asset represents the Corporation’s right to control the use of the underlying property during the lease term. Lease liabilities and right-of-use assets are recognized upon commencement of a lease and measured as the present value of lease payments over the lease term, discounted at the incremental borrowing rate of the lessee. The Corporation has elected not to separate lease and nonlease components within the same contract and instead to account for the entire contract as a lease.
Share-Based Compensation	Share-Based Compensation: Share-based compensation expense, net of forfeitures, for the third quarter of 2019 and the first nine months of 2019 was $306,000 ($211,000 after tax) and $1.07 million ($713,000 after tax), respectively, for restricted stock granted during 2014 through 2019. As of September 30, 2019, there was $2.69 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 2019 and 2018 is presented below: 2019 Weighted- Average Grant Date Shares Fair Value Unvested, December 31, 2018 139,455 $ 45.75 Granted 16,670 51.79 Vested (17,990) 41.55 Forfeited (680) 50.44 Unvested, September 30, 2019 137,455 47.01 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
Recently Adopted Accounting Pronouncements	Recently Adopted Accounting Pronouncements: On January 1, 2019, the Corporation adopted Accounting Standards Update (ASU) 2016-02, “Leases (Topic 842)” and related amendments (collectively, ASC 842), which resulted in recognition of a lease liability and right-of-use asset in connection with leases in which the Corporation is the lessee. Under ASC 842, lessor accounting is largely unchanged. The Corporation elected an optional transition method to apply ASC 842 as of the adoption date on a modified retrospective basis. Periods prior to January 1, 2019 have not been restated. Upon adoption, the Corporation recorded a lease liability of approximately $3.14 million for its remaining payment obligations as of January 1, 2019 for leases in effect at that time, excluding leases with an original term of twelve months or less, and a corresponding right-of-use asset. All of the Corporation’s existing leases upon adoption of ASC 842 were classified as operating leases based on the classification of each lease under previous U.S. GAAP; classification of these leases was not reconsidered upon adoption of ASC 842. Refer to Note 5 for further information about the Corporation’s leases.
Recent Significant Accounting Pronouncements	Recent Significant Accounting Pronouncements: In June 2016, the Financial Accounting Standards Board (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. Subsequently, this ASU was amended when the FASB issued ASU 2018-19, “ Codification Improvements to Topic 326, Financial Instruments – Credit Losses, ” ASU 2019-04, “Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments” and ASU 2019-05, “Financial Instruments – Credit Losses (Topic 326): Targeted Transition Relief ,” (collectively, ASC 326). ASC 326 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. In August 2019, the FASB issued a proposed ASU that would provide a deferral of the effective date of ASC 326 for many entities, including some entities that are SEC filers. At its meeting on October 16, 2019, the FASB affirmed its decision to issue a deferral, and an ASU is expected to be issued in the fourth quarter of 2019. Based on the proposed ASU, the Corporation expects that ASC 326 will be effective for the Corporation beginning on January 1, 2023. The amendments of ASC 326, upon adoption, 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 to prepare for and implement changes related to ASC 326 and has gathered historical loan loss data for purposes of evaluating appropriate portfolio segmentation and modeling methods under the standard. The Corporation has performed procedures to validate the historical loan loss data to ensure its suitability and reliability for purposes of developing an estimate of expected credit losses under ASC 326. The Corporation has engaged a vendor to assist in modeling expected lifetime losses under ASC 326. The adoption of ASC 326 will result in significant changes to the Corporation’s consolidated financial statements, which may include changes in the level of the allowance for credit losses that will be considered adequate, a reduction in shareholders’ equity and regulatory capital of C&F Bank, differences in the timing of recognizing changes to the allowance for credit losses and expanded disclosures about the allowance for credit losses. The Corporation has not yet determined an estimate of the effect of these changes. The adoption of the standard will also result in significant changes in the Corporation’s internal control over financial reporting related to the allowance for credit losses. 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, 2019
Summary of Significant Accounting Policies
Summary of activity for restricted stock awards	2019 Weighted- Average Grant Date Shares Fair Value Unvested, December 31, 2018 139,455 $ 45.75 Granted 16,670 51.79 Vested (17,990) 41.55 Forfeited (680) 50.44 Unvested, September 30, 2019 137,455 47.01 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

Securities (Tables)

Securities (Tables)	9 Months Ended
	Sep. 30, 2019
Securities
Summary of available for sale debt securities	September 30, 2019 Gross Gross Amortized Unrealized Unrealized (Dollars in thousands) Cost Gains Losses Fair Value U.S. government agencies and corporations $ 22,204 $ 2 $ (26) $ 22,180 Mortgage-backed securities 88,933 879 (111) 89,701 Obligations of states and political subdivisions 77,739 1,264 (15) 78,988 $ 188,876 $ 2,145 $ (152) $ 190,869 December 31, 2018 Gross Gross Amortized Unrealized Unrealized (Dollars in thousands) Cost Gains Losses Fair Value U.S. government agencies and corporations $ 18,008 $ 1 $ (536) $ 17,473 Mortgage-backed securities 106,787 85 (1,889) 104,983 Obligations of states and political subdivisions 91,855 840 (241) 92,454 $ 216,650 $ 926 $ (2,666) $ 214,910
Schedule of amortized cost and estimated fair value of securities, by the earlier of contractual maturity or expected maturity	September 30, 2019 Amortized (Dollars in thousands) Cost Fair Value Due in one year or less $ 37,681 $ 37,796 Due after one year through five years 133,691 135,024 Due after five years through ten years 12,834 13,066 Due after ten years 4,670 4,983 $ 188,876 $ 190,869
Schedule of gross realized gains and losses and the proceeds	Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2019 2018 2019 2018 Realized gains from maturities and calls of securities: Gross realized gains $ 3 $ 5 $ 8 $ 10 Gross realized losses — — — (1) Net realized gains $ 3 $ 5 $ 8 $ 9 Proceeds from maturities, calls and paydowns of securities $ 21,954 $ 12,865 $ 55,593 $ 35,267
Schedule of securities in an unrealized loss position	Securities in an unrealized loss position at September 30, 2019, 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 $ 7,442 $ 1 $ 8,821 $ 25 $ 16,263 $ 26 Mortgage-backed securities 10,828 22 13,762 89 24,590 111 Obligations of states and political subdivisions 5,777 6 2,590 9 8,367 15 Total temporarily impaired securities $ 24,047 $ 29 $ 25,173 $ 123 $ 49,220 $ 152 Securities in an unrealized loss position at December 31, 2018, by duration of the period of the unrealized loss, are shown below. Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Loss Value Loss Value Loss U.S. government agencies and corporations $ 997 $ 1 $ 15,725 $ 535 $ 16,722 $ 536 Mortgage-backed securities 17,934 132 72,830 1,757 90,764 1,889 Obligations of states and political subdivisions 9,492 29 20,555 212 30,047 241 Total temporarily impaired securities $ 28,423 $ 162 $ 109,110 $ 2,504 $ 137,533 $ 2,666

Loans (Tables)

Loans (Tables)	9 Months Ended
	Sep. 30, 2019
Loans
Summary of major classifications of loans	September 30, December 31, (Dollars in thousands) 2019 2018 Real estate – residential mortgage $ 179,960 $ 184,901 Real estate – construction 1 62,554 54,461 Commercial, financial and agricultural 2 466,349 455,935 Equity lines 52,411 55,660 Consumer 13,521 15,009 Consumer finance 313,743 296,154 1,088,538 1,062,120 Less allowance for loan losses (33,218) (34,023) Loans, net $ 1,055,320 $ 1,028,097 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, 2019 December 31, 2018 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 $ 6,658 $ 32,920 $ 39,578 $ 9,734 $ 38,768 $ 48,502 Carrying amount Real estate – residential mortgage $ 110 $ 7,216 $ 7,326 $ 284 $ 8,823 $ 9,107 Commercial, financial and agricultural 1 433 15,588 16,021 1,461 18,982 20,443 Equity lines 35 8,520 8,555 90 9,063 9,153 Consumer — 3 3 — 6 6 Total acquired loans $ 578 $ 31,327 $ 31,905 $ 1,835 $ 36,874 $ 38,709 1 Includes acquired loans classified by the Corporation as commercial real estate lending and commercial business lending.
Summary of change in the accretable yield of loans classified as purchased credit impaired (PCI)	Nine Months Ended September 30, (Dollars in thousands) 2019 2018 Accretable yield, balance at beginning of period $ 5,987 $ 7,304 Accretion (2,745) (2,892) Reclassification of nonaccretable difference due to improvement in expected cash flows 1,286 1,410 Other changes, net 581 (324) Accretable yield, balance at end of period $ 5,109 $ 5,498
Schedule of loans on nonaccrual status	September 30, December 31, (Dollars in thousands) 2019 2018 Real estate – residential mortgage $ 563 $ 594 Commercial, financial and agricultural: Commercial business lending — 24 Equity lines 302 883 Consumer 119 — Consumer finance 527 712 Total loans on nonaccrual status $ 1,511 $ 2,213
Schedule of past due status of loans	The past due status of loans as of September 30, 2019 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 Real estate – residential mortgage $ 1,120 $ 163 $ 352 $ 1,635 $ 110 $ 178,215 $ 179,960 $ 318 Real estate – construction: Construction lending — — — — — 48,164 48,164 — Consumer lot lending — — — — — 14,390 14,390 — Commercial, financial and agricultural: Commercial real estate lending 1,331 1,233 315 2,879 433 309,072 312,384 315 Land acquisition and development lending — — — — — 41,241 41,241 — Builder line lending — — — — — 29,606 29,606 — Commercial business lending 125 120 — 245 — 82,873 83,118 — Equity lines 73 97 397 567 35 51,809 52,411 92 Consumer 20 7 7 34 — 13,487 13,521 7 Consumer finance 8,841 1,558 527 10,926 — 302,817 313,743 — Total $ 11,510 $ 3,178 $ 1,598 $ 16,286 $ 578 $ 1,071,674 $ 1,088,538 $ 732 1 For the purposes of the table above, “Current” includes loans that are 1-29 days past due. The table above includes nonaccrual loans that are current of $431,000, 30-59 days past due of $213,000 and 90+ days past due of $867,000. The past due status of loans as of December 31, 2018 was as follows: 90+ Days 30 - 59 Days 60 - 89 Days 90+ Days Total Past Due and (Dollars in thousands) Past Due Past Due Past Due Past Due PCI Current 1 Total Loans Accruing Real estate – residential mortgage $ 1,221 $ — $ 37 $ 1,258 $ 284 $ 183,359 $ 184,901 $ 9 Real estate – construction: Construction lending — — — — — 42,051 42,051 — Consumer lot lending — — — — — 12,410 12,410 — Commercial, financial and agricultural: Commercial real estate lending — — 315 315 1,461 309,057 310,833 315 Land acquisition and development lending — — — — — 43,404 43,404 — Builder line lending — — — — — 31,201 31,201 — Commercial business lending 163 19 24 206 — 70,291 70,497 — Equity lines 46 584 325 955 90 54,615 55,660 — Consumer 31 — — 31 — 14,978 15,009 — Consumer finance 11,419 1,965 712 14,096 — 282,058 296,154 — Total $ 12,880 $ 2,568 $ 1,413 $ 16,861 $ 1,835 $ 1,043,424 $ 1,062,120 $ 324 1 For the purposes of the table above, “Current” includes loans that are 1-29 days past due. The table above includes nonaccrual loans that are current of $458,000, 30-59 days past due of $97,000, 60‑89 days past due of $560,000 and 90+ days past due of $1.10 million.
Schedule of loan modifications classified as TDRs	Three Months Ended September 30, 2019 2018 Number of Recorded Number of Recorded (Dollars in thousands) Loans Investment Loans Investment Real estate – residential mortgage 2 $ 95 — $ — Consumer — — 1 5 Total 2 $ 95 1 $ 5 Nine Months Ended September 30, 2019 2018 Number of Recorded Number of Recorded (Dollars in thousands) Loans Investment Loans Investment Real estate – residential mortgage 2 $ 95 — $ — Consumer 1 121 1 $ 5 Total 3 $ 216 1 $ 5
Schedule of impaired loans	Impaired loans, which included TDRs of $4.53 million, and the related allowance at September 30, 2019 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 $ 2,921 $ 1,279 $ 1,525 $ 81 $ 2,904 $ 105 Commercial, financial and agricultural: Commercial real estate lending 1,588 7 1,564 75 1,601 62 Equity lines 225 30 187 187 217 2 Consumer 131 — 123 119 124 — Total $ 4,865 $ 1,316 $ 3,399 $ 462 $ 4,846 $ 169 Impaired loans, which included TDRs of $5.45 million, and the related allowance at December 31, 2018 were as follows: Recorded Recorded Investment Investment Average Unpaid in Loans in Loans Balance- Interest Principal without with Related Impaired Income (Dollars in thousands) Balance Specific Reserve Specific Reserve Allowance Loans Recognized Real estate – residential mortgage $ 3,057 $ 1,288 $ 1,677 $ 92 $ 3,056 $ 142 Commercial, financial and agricultural: Commercial real estate lending 2,468 1,498 927 10 2,653 132 Commercial business lending 33 25 — — 26 — Equity lines 365 31 326 326 359 2 Consumer 5 — 5 — 5 — Total $ 5,928 $ 2,842 $ 2,935 $ 428 $ 6,099 $ 276

Allowance for Loan Losses (Tabl

Allowance for Loan Losses (Tables)	9 Months Ended
	Sep. 30, 2019
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, 2019: 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, 2018 $ 2,246 $ 727 $ 6,688 $ 1,106 $ 257 $ 22,999 $ 34,023 Provision (credited) charged to operations (85) 77 103 (214) 229 5,895 6,005 Loans charged off (46) — (29) (19) (261) (10,092) (10,447) Recoveries of loans previously charged off 20 — 4 — 173 3,440 3,637 Balance at September 30, 2019 $ 2,135 $ 804 $ 6,766 $ 873 $ 398 $ 22,242 $ 33,218 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 (credited) charged 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
Schedule of balance of the allowance for loan losses and the balance of loans by impairment methodology	The following table presents, as of September 30, 2019, the balance of the allowance for loan losses and the balance of loans by impairment methodology. Real Estate Commercial, Residential Real Estate Financial & Equity Consumer (Dollars in thousands) Mortgage Construction Agricultural Lines Consumer Finance Total Allowance balance attributable to loans: Individually evaluated for impairment $ 81 $ — $ 75 $ 187 $ 119 $ — $ 462 Collectively evaluated for impairment 2,054 804 6,691 686 279 22,242 32,756 Acquired loans - PCI — — — — — — — Total allowance $ 2,135 $ 804 $ 6,766 $ 873 $ 398 $ 22,242 $ 33,218 Loans: Individually evaluated for impairment $ 2,804 $ — $ 1,571 $ 217 $ 123 $ — $ 4,715 Collectively evaluated for impairment 177,046 62,554 464,345 52,159 13,398 313,743 1,083,245 Acquired loans - PCI 110 — 433 35 — — 578 Total loans $ 179,960 $ 62,554 $ 466,349 $ 52,411 $ 13,521 $ 313,743 $ 1,088,538 The following table presents, as of December 31, 2018, the balance of the 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 balance attributable to loans: Individually evaluated for impairment $ 92 $ — $ 10 $ 326 $ — $ — $ 428 Collectively evaluated for impairment 2,154 727 6,678 780 257 22,999 33,595 Acquired loans - PCI — — — — — — — Total allowance $ 2,246 $ 727 $ 6,688 $ 1,106 $ 257 $ 22,999 $ 34,023 Loans: Individually evaluated for impairment $ 2,965 $ — $ 2,450 $ 357 $ 5 $ — $ 5,777 Collectively evaluated for impairment 181,652 54,461 452,024 55,213 15,004 296,154 1,054,508 Acquired loans - PCI 284 — 1,461 90 — — 1,835 Total loans $ 184,901 $ 54,461 $ 455,935 $ 55,660 $ 15,009 $ 296,154 $ 1,062,120
Schedule of loans by credit quality indicators	Loans by credit quality indicators as of September 30, 2019 were as follows: Special Substandard (Dollars in thousands) Pass Mention Substandard Nonaccrual Total 1 Real estate – residential mortgage $ 176,844 $ 1,313 $ 1,240 $ 563 $ 179,960 Real estate – construction: Construction lending 48,164 — — — 48,164 Consumer lot lending 14,390 — — — 14,390 Commercial, financial and agricultural: Commercial real estate lending 311,126 867 391 — 312,384 Land acquisition and development lending 32,017 9,224 — — 41,241 Builder line lending 29,606 — — — 29,606 Commercial business lending 82,673 376 69 — 83,118 Equity lines 51,699 237 173 302 52,411 Consumer 13,401 — 1 119 13,521 $ 759,920 $ 12,017 $ 1,874 $ 984 $ 774,795 1 At September 30, 2019, the Corporation did not have any loans classified as Doubtful or Loss. Non- (Dollars in thousands) Performing Performing Total Consumer finance $ 313,216 $ 527 $ 313,743 Loans by credit quality indicators as of December 31, 2018 were as follows: Special Substandard (Dollars in thousands) Pass Mention Substandard Nonaccrual Total 1 Real estate – residential mortgage $ 180,232 $ 2,832 $ 1,243 $ 594 $ 184,901 Real estate – construction: Construction lending 42,051 — — — 42,051 Consumer lot lending 12,410 — — — 12,410 Commercial, financial and agricultural: Commercial real estate lending 306,578 3,801 454 — 310,833 Land acquisition and development lending 33,156 10,248 — — 43,404 Builder line lending 31,201 — — — 31,201 Commercial business lending 69,897 576 — 24 70,497 Equity lines 54,289 389 99 883 55,660 Consumer 14,998 5 6 — 15,009 $ 744,812 $ 17,851 $ 1,802 $ 1,501 $ 765,966 1 At December 31, 2018, the Corporation did not have any loans classified as Doubtful or Loss. Non- (Dollars in thousands) Performing Performing Total Consumer finance $ 295,442 $ 712 $ 296,154

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 30, 2019
Leases
Schedule of lease cost	Three Months Ended Nine Months Ended (Dollars in thousands) September 30, 2019 September 30, 2019 Operating lease cost $ 422 $ 1,256 Short-term lease cost 30 98 Variable lease cost 19 37 Total lease cost $ 471 $ 1,391
Schedule of maturities of lease liabilities	As of (Dollars in thousands) September 30, 2019 2019 $ 282 2020 1,497 2021 902 2022 288 2023 126 Thereafter 225 Total 3,320 Imputed interest (149) Lease liabilities $ 3,171

Equity, Other Comprehensive I_2

Equity, Other Comprehensive Income and Earnings Per Share (Tables)	9 Months Ended
	Sep. 30, 2019
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) 2019 2018 Net unrealized gains (losses) on securities $ 1,575 $ (1,375) Net unrecognized (losses) gains on cash flow hedges (381) 215 Net unrecognized losses on defined benefit plan (3,441) (3,512) Total accumulated other comprehensive loss $ (2,247) $ (4,672)
Schedule of components earnings per share calculations	Three Months Ended September 30, (Dollars in thousands) 2019 2018 Net income attributable to C&F Financial Corporation $ 4,880 $ 5,101 Weighted average shares outstanding — basic and diluted 3,430,298 3,503,371 Nine Months Ended September 30, (Dollars in thousands) 2019 2018 Net income attributable to C&F Financial Corporation $ 14,494 $ 14,063 Weighted average shares outstanding - basic and diluted 3,459,191 3,502,550

Employee Benefit Plans (Tables)

Employee Benefit Plans (Tables)	9 Months Ended
	Sep. 30, 2019
Employee Benefit Plans
Schedule of net periodic benefit costs	Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2019 2018 2019 2018 Components of net periodic benefit cost: Service cost, included in salaries and employee benefits $ 305 $ 309 $ 914 $ 923 Other components of net periodic benefit cost: Interest cost 152 138 456 384 Expected return on plan assets (324) (373) (973) (1,039) Amortization of prior service credit (17) (16) (51) (46) Recognized net actuarial losses 47 32 141 93 Other components of net periodic benefit cost, included in other noninterest income (142) (219) (427) (608) Net periodic benefit cost $ 163 $ 90 $ 487 $ 315

Fair Value of Assets and Liab_2

Fair Value of Assets and Liabilities (Tables)	9 Months Ended
	Sep. 30, 2019
Fair Value of Assets and Liabilities
Schedule of balances of financial assets and liabilities measured at fair value on a recurring basis	September 30, 2019 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 $ — $ 22,180 $ — $ 22,180 Mortgage-backed securities — 89,701 — 89,701 Obligations of states and political subdivisions — 78,988 — 78,988 Total securities available for sale — 190,869 — 190,869 Loans held for sale — 98,357 — 98,357 Derivatives IRLC — 1,760 — 1,760 Interest rate swaps on loans — 3,484 — 3,484 Total assets $ — $ 294,470 $ — $ 294,470 Liabilities: Derivatives Interest rate swaps on loans $ — $ 3,484 $ — $ 3,484 Cash flow hedges — 592 — 592 Forward sales of TBA securities — 56 — 56 Total liabilities $ — $ 4,132 $ — $ 4,132 December 31, 2018 Fair Value Measurements Using Assets/Liabilities at (Dollars in thousands) Level 1 Level 2 Level 3 Fair Value Assets: Securities available for sale U.S. government agencies and corporations $ — $ 17,473 $ — $ 17,473 Mortgage-backed securities — 104,983 — 104,983 Obligations of states and political subdivisions — 92,454 — 92,454 Total securities available for sale — 214,910 — 214,910 Loans held for sale — 41,895 — 41,895 Derivatives IRLC — 636 — 636 Interest rate swaps on loans — 1,607 — 1,607 Cash flow hedges — 289 — 289 Total assets $ — $ 259,337 $ — $ 259,337 Liabilities: Derivatives - interest rate swaps on loans $ — $ 1,607 $ — $ 1,607 Total liabilities $ — $ 1,607 $ — $ 1,607
Schedule of balances of assets measured at fair value on a nonrecurring basis	September 30, 2019 Fair Value Measurements Using Assets at Fair (Dollars in thousands) Level 1 Level 2 Level 3 Value Impaired loans, net $ — $ — $ 102 $ 102 Other real estate owned, net — — 268 268 Total $ — $ — $ 370 $ 370 December 31, 2018 Fair Value Measurements Using Assets at Fair (Dollars in thousands) Level 1 Level 2 Level 3 Value Impaired loans, net $ — $ — $ 102 $ 102 Other real estate owned, net — — 246 246 Total $ — $ — $ 348 $ 348
Schedule of 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, 2019 (Dollars in thousands) Fair Value Valuation Technique(s) Unobservable Inputs Range of Inputs Impaired loans, net $ 102 Appraisals Discount to reflect current market conditions and estimated selling costs 30% Other real estate owned, net 268 Appraisals Discount to reflect current market conditions and estimated selling costs 33%-75% Total $ 370
Schedule of carrying amounts and estimated fair values of financial instruments	Carrying Fair Value Measurements at September 30, 2019 Using Total Fair (Dollars in thousands) Value Level 1 Level 2 Level 3 Value Financial assets: Cash and short-term investments $ 145,794 $ 145,794 $ — $ — $ 145,794 Securities available for sale 190,869 — 190,869 — 190,869 Loans, net 1,055,320 — — 1,061,512 1,061,512 Loans held for sale 98,357 — 98,357 — 98,357 Derivatives IRLC 1,760 — 1,760 — 1,760 Interest rate swaps on loans 3,484 — 3,484 — 3,484 Bank-owned life insurance 16,348 — 16,348 — 16,348 Accrued interest receivable 6,685 6,685 — — 6,685 Financial liabilities: Demand deposits 836,236 836,236 — — 836,236 Time deposits 412,344 — 412,374 — 412,374 Borrowings 161,660 — 155,269 — 155,269 Derivatives Cash flow hedges 592 — 592 — 592 Interest rate swaps on loans 3,484 — 3,484 — 3,484 Forward sales of TBA securities 56 — 56 — 56 Accrued interest payable 1,263 1,263 — — 1,263 Carrying Fair Value Measurements at December 31, 2018 Using Total Fair (Dollars in thousands) Value Level 1 Level 2 Level 3 Value Financial assets: Cash and short-term investments $ 115,013 $ 115,013 $ — $ — $ 115,013 Securities available for sale 214,910 — 214,910 — 214,910 Loans, net 1,028,097 — — 1,021,145 1,021,145 Loans held for sale 41,895 — 41,895 — 41,895 Derivatives IRLC 636 — 636 — 636 Interest rate swaps on loans 1,607 — 1,607 — 1,607 Cash flow hedges 289 — 289 — 289 Bank-owned life insurance 16,065 — 16,065 — 16,065 Accrued interest receivable 7,436 7,436 — — 7,436 Financial liabilities: Demand deposits 835,101 835,101 — — 835,101 Time deposits 346,560 — 343,507 — 343,507 Borrowings 159,691 — 152,015 — 152,015 Derivatives - interest rate swaps on loans 1,607 — 1,607 — 1,607 Accrued interest payable 920 920 — — 920

Business Segments (Tables)

Business Segments (Tables)	9 Months Ended
	Sep. 30, 2019
Business Segments
Schedule of segment reporting information, by segment	Three Months Ended September 30, 2019 Retail Mortgage Consumer (Dollars in thousands) Banking Banking Finance Other Eliminations Consolidated Revenues: Interest income $ 15,060 $ 814 $ 10,442 $ — $ (2,324) $ 23,992 Gains on sales of loans — 3,205 — — — 3,205 Other noninterest income 2,874 1,426 132 593 — 5,025 Total operating income 17,934 5,445 10,574 593 (2,324) 32,222 Expenses: Provision for loan losses — — 1,800 — — 1,800 Interest expense 2,684 541 2,596 272 (2,324) 3,769 Salaries and employee benefits 7,173 1,742 2,233 582 — 11,730 Other noninterest expenses 5,224 1,526 1,334 488 — 8,572 Total operating expenses 15,081 3,809 7,963 1,342 (2,324) 25,871 Income (loss) before income taxes 2,853 1,636 2,611 (749) — 6,351 Income tax expense (benefit) 460 426 710 (130) — 1,466 Net income (loss) $ 2,393 $ 1,210 $ 1,901 $ (619) $ — $ 4,885 Total assets $ 1,436,986 $ 115,547 $ 316,158 $ 6,000 $ (255,310) $ 1,619,381 Goodwill $ 3,702 $ — $ 10,723 $ — $ — $ 14,425 Capital expenditures $ 453 $ 60 $ 17 $ — $ — $ 530 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 Nine Months Ended September 30, 2019 Retail Mortgage Consumer (Dollars in thousands) Banking Banking Finance Other Eliminations Consolidated Revenues: Interest income $ 44,803 $ 1,833 $ 30,952 $ 4 $ (6,373) $ 71,219 Gains on sales of loans — 8,296 — — — 8,296 Other noninterest income 8,899 4,232 465 1,643 — 15,239 Total operating income 53,702 14,361 31,417 1,647 (6,373) 94,754 Expenses: Provision for loan losses 110 — 5,895 — — 6,005 Interest expense 7,352 1,113 7,765 867 (6,373) 10,724 Salaries and employee benefits 21,718 5,133 6,581 1,700 — 35,132 Other noninterest expenses 15,267 4,105 4,120 904 — 24,396 Total operating expenses 44,447 10,351 24,361 3,471 (6,373) 76,257 Income (loss) before income taxes 9,255 4,010 7,056 (1,824) — 18,497 Income tax expense (benefit) 1,501 1,051 1,921 (474) — 3,999 Net income (loss) $ 7,754 $ 2,959 $ 5,135 $ (1,350) $ — $ 14,498 Total assets $ 1,436,986 $ 115,547 $ 316,158 $ 6,000 $ (255,310) $ 1,619,381 Goodwill $ 3,702 $ — $ 10,723 $ — $ — $ 14,425 Capital expenditures $ 1,741 $ 136 $ 57 $ 67 $ — $ 2,001 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

Derivative Financial Instrume_2

Derivative Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2019
Derivative Financial Instruments
Schedule of key elements of derivative instruments other than forward sales of mortgage loans	September 30, 2019 Notional Collateral (Dollars in thousands) Amount Assets Liabilities Pledged 1 Cash flow hedges: Interest rate swap contracts $ 25,000 $ — $ 592 $ — Not designated as hedges: Customer-related interest rate swap contracts: Matched interest rate swaps with borrower 66,305 3,484 — — Matched interest rate swaps with counterparty 66,305 — 3,484 — Mortgage banking contracts: IRLCs 116,927 1,760 — — Forward sales of TBA securities 23,250 — 56 — December 31, 2018 Notional Collateral (Dollars in thousands) Amount Assets Liabilities Pledged 1 Cash flow hedges: Interest rate swap contracts $ 25,000 $ 289 $ — $ — Not designated as hedges: Customer-related interest rate swap contracts: Matched interest rate swaps with borrower 45,961 216 1,391 — Matched interest rate swaps with counterparty 45,961 1,391 216 — Mortgage banking contracts: IRLCs 44,324 636 — — 1 Collateral pledged may be comprised of cash or securities.

Other Noninterest Expenses (Tab

Other Noninterest Expenses (Tables)	9 Months Ended
	Sep. 30, 2019
Other Noninterest Expenses
Schedule of other noninterest expense	Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2019 2018 2019 2018 Data processing fees $ 2,093 $ 1,879 $ 5,989 $ 5,524 Professional fees 1,061 634 2,414 2,152 Marketing and advertising expenses 485 379 1,293 1,222 Travel and educational expenses 290 257 996 928 Telecommunication expenses 337 336 985 1,015 All other noninterest expenses 2,080 2,015 6,155 6,098 Total other noninterest expenses $ 6,346 $ 5,500 $ 17,832 $ 16,939

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Nature of Operations (Details)	Aug. 13, 2019location	Sep. 30, 2019USD ($)subsidiary	Mar. 31, 2020USD ($)shares	Sep. 30, 2019USD ($)subsidiary	Nov. 06, 2019$ / shares
Nature of Operations
Land and buildings reclassified from corporate premises, net into other real estate owned		$ 835,000		$ 835,000
Peoples Bankshares, Incorporated (Peoples)
Nature of Operations
Number of shares issued or issuable for each common stock (in shares) | shares			0.5366
Cash consideration (in dollars per share)			$ 27
Aggregate stock and cash consideration			$ 21,320,000
Closing price (in dollars per share) | $ / shares					$ 51.20
C&F Bank
Nature of Operations
Number of wholly owned subsidiaries | subsidiary		5		5
C&F Mortgage | C&F Select LLC
Nature of Operations
Interest owned (as a percent)		51.00%		51.00%
Peoples Bankshares, Incorporated (Peoples)
Nature of Operations
Number of Bank Branch Locations | location	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, 2019USD ($)	Sep. 30, 2019USD ($)
Share-based compensation
Compensation expense before tax	$ 306,000	$ 1,070,000
Compensation expense after tax	211,000	(713,000)
Unrecognized compensation expense	$ 2,690,000	$ 2,690,000

Summary of Significant Accoun_6

Summary of Significant Accounting Policies - Restricted Stock Activity (Details) - $ / shares	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Shares
Unvested, beginning of period (in shares)	139,455
Unvested, end of period (in shares)	137,455
Restricted Stock
Shares
Unvested, beginning of period (in shares)	139,455	137,880
Granted (in shares)	16,670	11,610
Vested (in shares)	(17,990)	(14,625)
Forfeited	(680)	(1,960)
Unvested, end of period (in shares)	137,455	132,905
Weighted average grant date fair value
Unvested, beginning of period (in dollars per share)	$ 45.75	$ 43.52
Granted (in dollars per share)	51.79	58.30
Vested (in dollars per share)	41.55	40.47
Forfeited (in dollars per share)	50.44	43.26
Unvested, end of period (in dollars per share)	$ 47.01	$ 45.14

Summary of Significant Accoun_7

Summary of Significant Accounting Policies - Recently Adopted Accounting Pronouncements (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Jan. 01, 2019
Adoption of New Accounting Standards
Operating lease liability	$ 3,171
Right-of-use assets	$ 3,170
ASU 2016-02 | Adjustment
Adoption of New Accounting Standards
Operating lease liability		$ 3,140
Right-of-use assets		$ 3,140

Securities - Available for sale

Securities - Available for sale Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 188,876	$ 216,650
Gross Unrealized Gains	2,145	926
Gross Unrealized Losses	(152)	(2,666)
Fair Value	190,869	214,910	[1]
U.S. government agencies and corporations
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	22,204	18,008
Gross Unrealized Gains	2	1
Gross Unrealized Losses	(26)	(536)
Fair Value	22,180	17,473
Mortgage-backed securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	88,933	106,787
Gross Unrealized Gains	879	85
Gross Unrealized Losses	(111)	(1,889)
Fair Value	89,701	104,983
Obligations of states and political subdivisions
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	77,739	91,855
Gross Unrealized Gains	1,264	840
Gross Unrealized Losses	(15)	(241)
Fair Value	$ 78,988	$ 92,454
[1]	Derived from audited consolidated financial statements.

Securities - Contractual Maturi

Securities - Contractual Maturities and Realized Gains and Losses (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Amortized Cost
Due in one year or less	$ 37,681		$ 37,681
Due after one year through five years	133,691		133,691
Due after five years through ten years	12,834		12,834
Due after ten years	4,670		4,670
Amortized Cost	188,876		188,876		$ 216,650
Estimated Fair Value
Due in one year or less	37,796		37,796
Due after one year through five years	135,024		135,024
Due after five years through ten years	13,066		13,066
Due after ten years	4,983		4,983
Fair Value	190,869		190,869		$ 214,910	[1]
Gross realized gains and losses on and the proceeds from the maturities, calls and paydowns of securities
Gross realized gains from maturities and calls of securities available for sale	3	$ 5	8	$ 10
Gross realized losses from maturities and calls of securities available for sale				(1)
Net realized losses from maturities and calls of securities available for sale	3	5	8	9
Proceeds from maturities and calls and paydowns of securities	$ 21,954	$ 12,865	$ 55,593	$ 35,267
[1]	Derived from audited consolidated financial statements.

Securities - Pledged as Collate

Securities - Pledged as Collateral (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Available for sale securities
Amortized Cost	$ 188,876	$ 216,650
Fair Value	190,869	214,910	[1]
Securities Pledged as Collateral
Available for sale securities
Amortized Cost	94,830	110,810
Fair Value	$ 95,890	$ 109,830
[1]	Derived from audited consolidated financial statements.

Securities - Unrealized Loss Po

Securities - Unrealized Loss Positions (Details)	9 Months Ended
	Sep. 30, 2019USD ($)security	Dec. 31, 2018USD ($)
Fair value
Less Than 12 Months, Fair Value	$ 24,047,000	$ 28,423,000
12 Months or More, Fair Value	25,173,000	109,110,000
Total Fair Value	49,220,000	137,533,000
Unrealized Loss
Less Than 12 Months, Unrealized Loss	29,000	162,000
12 Months or More, Unrealized Loss	123,000	2,504,000
Total Unrealized Loss	$ 152,000	2,666,000
Other information
Number of positions considered temporarily impaired | security	85
Debt securities considered temporarily impaired	$ 49,220,000	137,533,000
Other than temporary impairment	0
U.S. government agencies and corporations
Fair value
Less Than 12 Months, Fair Value	7,442,000	997,000
12 Months or More, Fair Value	8,821,000	15,725,000
Total Fair Value	16,263,000	16,722,000
Unrealized Loss
Less Than 12 Months, Unrealized Loss	1,000	1,000
12 Months or More, Unrealized Loss	25,000	535,000
Total Unrealized Loss	26,000	536,000
Other information
Debt securities considered temporarily impaired	16,263,000	16,722,000
Mortgage-backed securities
Fair value
Less Than 12 Months, Fair Value	10,828,000	17,934,000
12 Months or More, Fair Value	13,762,000	72,830,000
Total Fair Value	24,590,000	90,764,000
Unrealized Loss
Less Than 12 Months, Unrealized Loss	22,000	132,000
12 Months or More, Unrealized Loss	89,000	1,757,000
Total Unrealized Loss	111,000	1,889,000
Other information
Debt securities considered temporarily impaired	24,590,000	90,764,000
Obligations of states and political subdivisions
Fair value
Less Than 12 Months, Fair Value	5,777,000	9,492,000
12 Months or More, Fair Value	2,590,000	20,555,000
Total Fair Value	8,367,000	30,047,000
Unrealized Loss
Less Than 12 Months, Unrealized Loss	6,000	29,000
12 Months or More, Unrealized Loss	9,000	212,000
Total Unrealized Loss	15,000	241,000
Other information
Debt securities considered temporarily impaired	$ 8,367,000	$ 30,047,000
Standard & Poor's, A Rating [Member]
Other information
Percentage of portfolio with rating	95.00%
Percentage of portfolio with rating in an unrealized loss positions	97.00%
Not A Rating Or Better
Other information
Percentage of portfolio with rating	3.00%

Securities - Restricted Stocks

Securities - Restricted Stocks (Details) - USD ($)	9 Months Ended
	Sep. 30, 2019	Dec. 31, 2018	[1]
Securities
Restricted stock, at cost	$ 3,257,000	$ 3,247,000
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, 2019	Dec. 31, 2018
Loans
Loans	$ 1,088,538	$ 1,062,120
Less allowance for loan losses	(33,218)	(34,023)
Loans, net	1,055,320	1,028,097	[1]
Real estate - residential mortgage
Loans
Loans	179,960	184,901
Real estate - construction
Loans
Loans	62,554	54,461
Commercial, financial and agricultural
Loans
Loans	466,349	455,935
Equity lines
Loans
Loans	52,411	55,660
Consumer
Loans
Loans	13,521	15,009
Amount included related to demand deposit overdrafts	255	275
Consumer finance
Loans
Loans	$ 313,743	$ 296,154
[1]	Derived from audited consolidated financial statements.

Loans - Loans Acquired (Details

Loans - Loans Acquired (Details) - CVBK - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Loans
Outstanding principal balance	$ 39,578	$ 48,502
Carrying amount
Acquired Loans	31,905	38,709
Real estate - residential mortgage
Carrying amount
Acquired Loans	7,326	9,107
Commercial, financial and agricultural
Carrying amount
Acquired Loans	16,021	20,443
Equity lines
Carrying amount
Acquired Loans	8,555	9,153
Consumer
Carrying amount
Acquired Loans	3	6
PCI Loans
Loans
Outstanding principal balance	6,658	9,734
Carrying amount
Acquired Loans	578	1,835
PCI Loans | Real estate - residential mortgage
Carrying amount
Acquired Loans	110	284
PCI Loans | Commercial, financial and agricultural
Carrying amount
Acquired Loans	433	1,461
PCI Loans | Equity lines
Carrying amount
Acquired Loans	35	90
Purchased Performing Loans
Loans
Outstanding principal balance	32,920	38,768
Carrying amount
Acquired Loans	31,327	36,874
Purchased Performing Loans | Real estate - residential mortgage
Carrying amount
Acquired Loans	7,216	8,823
Purchased Performing Loans | Commercial, financial and agricultural
Carrying amount
Acquired Loans	15,588	18,982
Purchased Performing Loans | Equity lines
Carrying amount
Acquired Loans	8,520	9,063
Purchased Performing Loans | Consumer
Carrying amount
Acquired Loans	$ 3	$ 6

Loans - Change in Accretable Yi

Loans - Change in Accretable Yield (Details) - CVBK - PCI Loans - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Change in the accretable yield
Accretable yield, balance at beginning of period	$ 5,987	$ 7,304
Accretion	(2,745)	(2,892)
Reclassification of nonaccreatable difference due to improvement in expected cash flows	1,286	1,410
Other changes, net	581	(324)
Accretable yield, balance at end of period	$ 5,109	$ 5,498

Loans - Loans on Nonaccrual Sta

Loans - Loans on Nonaccrual Status (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Loans on nonaccrual status
Loans on nonaccrual status	$ 1,511	$ 2,213
Real estate - residential mortgage
Loans on nonaccrual status
Loans on nonaccrual status	563	594
Commercial, financial and agricultural | Commercial business lending
Loans on nonaccrual status
Loans on nonaccrual status		24
Equity lines
Loans on nonaccrual status
Loans on nonaccrual status	302	883
Consumer
Loans on nonaccrual status
Loans on nonaccrual status	119
Consumer finance
Loans on nonaccrual status
Loans on nonaccrual status	$ 527	$ 712

Loans - Past Due Status (Detail

Loans - Past Due Status (Details) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Loans on nonaccrual status
Total Past Due	$ 16,286,000	$ 16,861,000
Current	1,071,674,000	1,043,424,000
Total Loans	1,088,538,000	1,062,120,000
90+ days past due and accruing	732,000	324,000
Additional disclosure for nonaccrual loans
Current, nonaccrual status	431,000	458,000
Nonaccrual loans, 30-59 days past due	213,000	97,000
Nonaccrual loans, 60-89 days past due		560,000
Nonaccrual loans, 90+ days past due	867,000,000,000	1,100,000
PCI
Loans on nonaccrual status
PCI	578,000	1,835,000
30-59 Days Past Due
Loans on nonaccrual status
Total Past Due	11,510,000	12,880,000
60-89 Days Past Due
Loans on nonaccrual status
Total Past Due	3,178,000	2,568,000
90+ Days Past Due
Loans on nonaccrual status
Total Past Due	1,598,000	1,413,000
Real estate - residential mortgage
Loans on nonaccrual status
Total Past Due	1,635,000	1,258,000
Current	178,215,000	183,359,000
Total Loans	179,960,000	184,901,000
90+ days past due and accruing	318,000	9,000
Real estate - residential mortgage | PCI
Loans on nonaccrual status
PCI	110,000	284,000
Real estate - residential mortgage | 30-59 Days Past Due
Loans on nonaccrual status
Total Past Due	1,120,000	1,221,000
Real estate - residential mortgage | 60-89 Days Past Due
Loans on nonaccrual status
Total Past Due	163,000
Real estate - residential mortgage | 90+ Days Past Due
Loans on nonaccrual status
Total Past Due	352,000	37,000
Equity lines
Loans on nonaccrual status
Total Past Due	567,000	955,000
Current	51,809,000	54,615,000
Total Loans	52,411,000	55,660,000
90+ days past due and accruing	92,000
Equity lines | PCI
Loans on nonaccrual status
PCI	35,000	90,000
Equity lines | 30-59 Days Past Due
Loans on nonaccrual status
Total Past Due	73,000	46,000
Equity lines | 60-89 Days Past Due
Loans on nonaccrual status
Total Past Due	97,000	584,000
Equity lines | 90+ Days Past Due
Loans on nonaccrual status
Total Past Due	397,000	325,000
Consumer
Loans on nonaccrual status
Total Past Due	34,000	31,000
Current	13,487,000	14,978,000
Total Loans	13,521,000	15,009,000
90+ days past due and accruing	7,000
Consumer | 30-59 Days Past Due
Loans on nonaccrual status
Total Past Due	20,000	31,000
Consumer | 60-89 Days Past Due
Loans on nonaccrual status
Total Past Due	7,000
Consumer | 90+ Days Past Due
Loans on nonaccrual status
Total Past Due	7,000
Consumer finance
Loans on nonaccrual status
Total Past Due	10,926,000	14,096,000
Current	302,817,000	282,058,000
Total Loans	313,743,000	296,154,000
Consumer finance | 30-59 Days Past Due
Loans on nonaccrual status
Total Past Due	8,841,000	11,419,000
Consumer finance | 60-89 Days Past Due
Loans on nonaccrual status
Total Past Due	1,558,000	1,965,000
Consumer finance | 90+ Days Past Due
Loans on nonaccrual status
Total Past Due	527,000	712,000
Construction lending | Real estate - construction
Loans on nonaccrual status
Current	48,164,000	42,051,000
Total Loans	48,164,000	42,051,000
Consumer lot lending | Real estate - construction
Loans on nonaccrual status
Current	14,390,000	12,410,000
Total Loans	14,390,000	12,410,000
Commercial real estate lending | Commercial, financial and agricultural
Loans on nonaccrual status
Total Past Due	2,879,000	315,000
Current	309,072,000	309,057,000
Total Loans	312,384,000	310,833,000
90+ days past due and accruing	315,000	315,000
Commercial real estate lending | Commercial, financial and agricultural | PCI
Loans on nonaccrual status
PCI	433,000	1,461,000
Commercial real estate lending | Commercial, financial and agricultural | 30-59 Days Past Due
Loans on nonaccrual status
Total Past Due	1,331,000
Commercial real estate lending | Commercial, financial and agricultural | 60-89 Days Past Due
Loans on nonaccrual status
Total Past Due	1,233,000
Commercial real estate lending | Commercial, financial and agricultural | 90+ Days Past Due
Loans on nonaccrual status
Total Past Due	315,000	315,000
Land acquisition and development lending | Commercial, financial and agricultural
Loans on nonaccrual status
Current	41,241,000	43,404,000
Total Loans	41,241,000	43,404,000
Builder line lending | Commercial, financial and agricultural
Loans on nonaccrual status
Current	29,606,000	31,201,000
Total Loans	29,606,000	31,201,000
Commercial business lending | Commercial, financial and agricultural
Loans on nonaccrual status
Total Past Due	245,000	206,000
Current	82,873,000	70,291,000
Total Loans	83,118,000	70,497,000
Commercial business lending | Commercial, financial and agricultural | 30-59 Days Past Due
Loans on nonaccrual status
Total Past Due	125,000	163,000
Commercial business lending | Commercial, financial and agricultural | 60-89 Days Past Due
Loans on nonaccrual status
Total Past Due	$ 120,000	19,000
Commercial business lending | Commercial, financial and agricultural | 90+ Days Past Due
Loans on nonaccrual status
Total Past Due		$ 24,000

Loans - Troubled Debt Restructu

Loans - Troubled Debt Restructurings (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2019USD ($)loan	Sep. 30, 2018loan	Sep. 30, 2019USD ($)loan	Sep. 30, 2018USD ($)loan
Loan modifications classified as troubled debt restructurings
Number of Loans | loan	2	1	3	1
Recorded Investment | $	$ 95,000		$ 216,000	$ 5,000
TDR payment default period			12 months
Period determining when a past due TDR becomes a subsequent default			90 days
Recorded Investment, TDR payment defaults | $			$ 0	$ 0
Interest rate concession
Loan modifications classified as troubled debt restructurings
Number of Loans | loan		1	1	1
Real estate - residential mortgage
Loan modifications classified as troubled debt restructurings
Number of Loans | loan	2		2
Recorded Investment | $	$ 95,000		$ 95,000
Consumer
Loan modifications classified as troubled debt restructurings
Number of Loans | loan		1	1	1
Recorded Investment | $			$ 121,000	$ 5,000

Loans - Impaired Loans (Details

Loans - Impaired Loans (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Impaired loans
Impaired loans, troubled debt restructurings	$ 4,530	$ 5,450
Impaired loans, Unpaid Principal Balance	4,865	5,928
Impaired loans, Recorded Investment in Loans without Specific Reserve	1,316	2,842
Impaired loans, Recorded Investment in Loans with Specific Reserve	3,399	2,935,000
Impaired loans, Related Allowance	462	428
Impaired loans, Average Balance	4,846	6,099
Impaired loans, Interest Income Recognized	169	276
Real estate - residential mortgage
Impaired loans
Impaired loans, Unpaid Principal Balance	2,921	3,057
Impaired loans, Recorded Investment in Loans without Specific Reserve	1,279	1,288
Impaired loans, Recorded Investment in Loans with Specific Reserve	1,525	1,677,000
Impaired loans, Related Allowance	81	92
Impaired loans, Average Balance	2,904	3,056
Impaired loans, Interest Income Recognized	105	142
Commercial, financial and agricultural | Commercial real estate lending
Impaired loans
Impaired loans, Unpaid Principal Balance	1,588	2,468
Impaired loans, Recorded Investment in Loans without Specific Reserve	7	1,498
Impaired loans, Recorded Investment in Loans with Specific Reserve	1,564	927,000
Impaired loans, Related Allowance	75	10
Impaired loans, Average Balance	1,601	2,653
Impaired loans, Interest Income Recognized	62	132
Commercial, financial and agricultural | Commercial business lending
Impaired loans
Impaired loans, Unpaid Principal Balance		33
Impaired loans, Recorded Investment in Loans without Specific Reserve		25
Impaired loans, Average Balance		26
Equity lines
Impaired loans
Impaired loans, Unpaid Principal Balance	225	365
Impaired loans, Recorded Investment in Loans without Specific Reserve	30	31
Impaired loans, Recorded Investment in Loans with Specific Reserve	187	326,000
Impaired loans, Related Allowance	187	326
Impaired loans, Average Balance	217	359
Impaired loans, Interest Income Recognized	2	2
Consumer
Impaired loans
Impaired loans, Unpaid Principal Balance	131	5
Impaired loans, Recorded Investment in Loans with Specific Reserve	123	5,000
Impaired loans, Related Allowance	119
Impaired loans, Average Balance	$ 124	$ 5

Allowance for Loan Losses - Cha

Allowance for Loan Losses - Change in Allowance for Loan Losses (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Allowance balance attributable to loans:
Balance at the beginning of period	$ 34,023	$ 35,726
Provision (credited) charged to operations	6,005	7,700
Loans charged off	(10,447)	(11,993)
Recoveries of loans previously charged off	3,637	3,526
Balance at the end of period	33,218	34,959
Real estate - residential mortgage
Allowance balance attributable to loans:
Balance at the beginning of period	2,246	2,371
Provision (credited) charged to operations	(85)	(122)
Loans charged off	(46)
Recoveries of loans previously charged off	20	52
Balance at the end of period	2,135	2,301
Real estate - construction
Allowance balance attributable to loans:
Balance at the beginning of period	727	605
Provision (credited) charged to operations	77	174
Balance at the end of period	804	779
Commercial, financial and agricultural
Allowance balance attributable to loans:
Balance at the beginning of period	6,688	7,478
Provision (credited) charged to operations	103	(625)
Loans charged off	(29)	(2)
Recoveries of loans previously charged off	4	46
Balance at the end of period	6,766	6,897
Equity lines
Allowance balance attributable to loans:
Balance at the beginning of period	1,106	688
Provision (credited) charged to operations	(214)	450
Loans charged off	(19)
Balance at the end of period	873	1,138
Consumer
Allowance balance attributable to loans:
Balance at the beginning of period	257	231
Provision (credited) charged to operations	229	123
Loans charged off	(261)	(248)
Recoveries of loans previously charged off	173	174
Balance at the end of period	398	280
Consumer finance
Allowance balance attributable to loans:
Balance at the beginning of period	22,999	24,353
Provision (credited) charged to operations	5,895	7,700
Loans charged off	(10,092)	(11,743)
Recoveries of loans previously charged off	3,440	3,254
Balance at the end of period	$ 22,242	$ 23,564

Allowance for Loan Losses - All

Allowance for Loan Losses - Allowance and Loans by Impairment Methodology (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018	Sep. 30, 2018	Dec. 31, 2017
Allowance balance attributable to loans:
Individually evaluated for impairment	$ 462	$ 428
Collectively evaluated for impairment	32,756	33,595
Total allowance	33,218	34,023	$ 34,959	$ 35,726
Loans:
Individually evaluated for impairment	4,715	5,777
Collectively evaluated for impairment	1,083,245	1,054,508
Total loans	1,088,538	1,062,120
Real estate - residential mortgage
Allowance balance attributable to loans:
Individually evaluated for impairment	81	92
Collectively evaluated for impairment	2,054	2,154
Total allowance	2,135	2,246	2,301	2,371
Loans:
Individually evaluated for impairment	2,804	2,965
Collectively evaluated for impairment	177,046	181,652
Total loans	179,960	184,901
Real estate - construction
Allowance balance attributable to loans:
Collectively evaluated for impairment	804	727
Total allowance	804	727	779	605
Loans:
Collectively evaluated for impairment	62,554	54,461
Total loans	62,554	54,461
Commercial, financial and agricultural
Allowance balance attributable to loans:
Individually evaluated for impairment	75	10
Collectively evaluated for impairment	6,691	6,678
Total allowance	6,766	6,688	6,897	7,478
Loans:
Individually evaluated for impairment	1,571	2,450
Collectively evaluated for impairment	464,345	452,024
Total loans	466,349	455,935
Equity lines
Allowance balance attributable to loans:
Individually evaluated for impairment	187	326
Collectively evaluated for impairment	686	780
Total allowance	873	1,106	1,138	688
Loans:
Individually evaluated for impairment	217	357
Collectively evaluated for impairment	52,159	55,213
Total loans	52,411	55,660
Consumer
Allowance balance attributable to loans:
Individually evaluated for impairment	119
Collectively evaluated for impairment	279	257
Total allowance	398	257	280	231
Loans:
Individually evaluated for impairment	123	5
Collectively evaluated for impairment	13,398	15,004
Total loans	13,521	15,009
Consumer finance
Allowance balance attributable to loans:
Collectively evaluated for impairment	22,242	22,999
Total allowance	22,242	22,999	$ 23,564	$ 24,353
Loans:
Collectively evaluated for impairment	313,743	296,154
Total loans	313,743	296,154
PCI
Loans:
Acquired loans - PCI	578	1,835
PCI | Real estate - residential mortgage
Loans:
Acquired loans - PCI	110	284
PCI | Commercial, financial and agricultural
Loans:
Acquired loans - PCI	433	1,461
PCI | Equity lines
Loans:
Acquired loans - PCI	$ 35	$ 90

Allowance for Loan Losses - Cre

Allowance for Loan Losses - Credit Quality Indicators (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Allowance for loan losses
Loans, excluding consumer finance	$ 774,795	$ 765,966
Loans	1,088,538	1,062,120
Pass [Member]
Allowance for loan losses
Loans, excluding consumer finance	759,920	744,812
Special Mention [Member]
Allowance for loan losses
Loans, excluding consumer finance	12,017	17,851
Substandard [Member]
Allowance for loan losses
Loans, excluding consumer finance	1,874	1,802
Substandard Nonaccrual
Allowance for loan losses
Loans, excluding consumer finance	984	1,501
Real estate - residential mortgage
Allowance for loan losses
Loans, excluding consumer finance	179,960	184,901
Loans	179,960	184,901
Real estate - residential mortgage | Pass [Member]
Allowance for loan losses
Loans, excluding consumer finance	176,844	180,232
Real estate - residential mortgage | Special Mention [Member]
Allowance for loan losses
Loans, excluding consumer finance	1,313	2,832
Real estate - residential mortgage | Substandard [Member]
Allowance for loan losses
Loans, excluding consumer finance	1,240	1,243
Real estate - residential mortgage | Substandard Nonaccrual
Allowance for loan losses
Loans, excluding consumer finance	563	594
Real estate - construction
Allowance for loan losses
Loans	62,554	54,461
Real estate - construction | Construction lending
Allowance for loan losses
Loans, excluding consumer finance	48,164	42,051
Real estate - construction | Construction lending | Pass [Member]
Allowance for loan losses
Loans, excluding consumer finance	48,164	42,051
Real estate - construction | Consumer lot lending
Allowance for loan losses
Loans, excluding consumer finance	14,390	12,410
Real estate - construction | Consumer lot lending | Pass [Member]
Allowance for loan losses
Loans, excluding consumer finance	14,390	12,410
Commercial, financial and agricultural
Allowance for loan losses
Loans	466,349	455,935
Commercial, financial and agricultural | Commercial real estate lending
Allowance for loan losses
Loans, excluding consumer finance	312,384	310,833
Commercial, financial and agricultural | Commercial real estate lending | Pass [Member]
Allowance for loan losses
Loans, excluding consumer finance	311,126	306,578
Commercial, financial and agricultural | Commercial real estate lending | Special Mention [Member]
Allowance for loan losses
Loans, excluding consumer finance	867	3,801
Commercial, financial and agricultural | Commercial real estate lending | Substandard [Member]
Allowance for loan losses
Loans, excluding consumer finance	391	454
Commercial, financial and agricultural | Land acquisition and development lending
Allowance for loan losses
Loans, excluding consumer finance	41,241	43,404
Commercial, financial and agricultural | Land acquisition and development lending | Pass [Member]
Allowance for loan losses
Loans, excluding consumer finance	32,017	33,156
Commercial, financial and agricultural | Land acquisition and development lending | Special Mention [Member]
Allowance for loan losses
Loans, excluding consumer finance	9,224	10,248
Commercial, financial and agricultural | Builder line lending
Allowance for loan losses
Loans, excluding consumer finance	29,606	31,201
Commercial, financial and agricultural | Builder line lending | Pass [Member]
Allowance for loan losses
Loans, excluding consumer finance	29,606	31,201
Commercial, financial and agricultural | Commercial business lending
Allowance for loan losses
Loans, excluding consumer finance	83,118	70,497
Commercial, financial and agricultural | Commercial business lending | Pass [Member]
Allowance for loan losses
Loans, excluding consumer finance	82,673	69,897
Commercial, financial and agricultural | Commercial business lending | Special Mention [Member]
Allowance for loan losses
Loans, excluding consumer finance	376	576
Commercial, financial and agricultural | Commercial business lending | Substandard [Member]
Allowance for loan losses
Loans, excluding consumer finance	69
Commercial, financial and agricultural | Commercial business lending | Substandard Nonaccrual
Allowance for loan losses
Loans, excluding consumer finance		24
Equity lines
Allowance for loan losses
Loans, excluding consumer finance	52,411	55,660
Loans	52,411	55,660
Equity lines | Pass [Member]
Allowance for loan losses
Loans, excluding consumer finance	51,699	54,289
Equity lines | Special Mention [Member]
Allowance for loan losses
Loans, excluding consumer finance	237	389
Equity lines | Substandard [Member]
Allowance for loan losses
Loans, excluding consumer finance	173	99
Equity lines | Substandard Nonaccrual
Allowance for loan losses
Loans, excluding consumer finance	302	883
Consumer
Allowance for loan losses
Loans, excluding consumer finance	13,521	15,009
Loans	13,521	15,009
Consumer | Pass [Member]
Allowance for loan losses
Loans, excluding consumer finance	13,401	14,998
Consumer | Special Mention [Member]
Allowance for loan losses
Loans, excluding consumer finance		5
Consumer | Substandard [Member]
Allowance for loan losses
Loans, excluding consumer finance	1	$ 6
Consumer | Substandard Nonaccrual
Allowance for loan losses
Loans, excluding consumer finance	$ 119

Allowance for Loan Losses - Loa

Allowance for Loan Losses - Loans by Credit Quality Indicators - Performing and Non-Performing (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Allowance for loan losses
Loans	$ 1,088,538	$ 1,062,120
Consumer finance
Allowance for loan losses
Loans	313,743	296,154
Consumer finance | Performing
Allowance for loan losses
Loans	313,216	295,442
Consumer finance | Non-Performing
Allowance for loan losses
Loans	$ 527	$ 712

Leases (Details)

Leases (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2019USD ($)	Sep. 30, 2018USD ($)	Sep. 30, 2019USD ($)lease	Sep. 30, 2018USD ($)
Lease cost
Operating lease cost	$ 422,000		$ 1,256,000
Short-term lease cost	30,000		98,000
Variable lease cost	19,000		37,000
Total lease cost	471,000		1,391,000
Cash paid for lease liabilities	$ 427,000		$ 1,160,000
Weighted average remaining lease term	3 years		3 years
Weighted average discount rate	3.30%		3.30%
Right-of-use assets	$ 3,170,000		$ 3,170,000
Right-of-use assets, line item in Statement of Financial Position	us-gaap:OtherAssetsMember		us-gaap:OtherAssetsMember
Lease liabilities	$ 3,170,000		$ 3,170,000
Lease liabilities, line item in Statement of Financial Position	us-gaap:OtherLiabilitiesMember		us-gaap:OtherLiabilitiesMember
Right-of-use assets obtained in exchange for lease liabilities	$ 72,000		$ 1,120,000
Lease expense recognized		$ 344,000		$ 1,280,000
Maturities of lease liabilities
2019	282,000		282,000
2020	1,497,000		1,497,000
2021	902,000		902,000
2022	288,000		288,000
2023	126,000		126,000
Thereafter	225,000		225,000
Total	3,320,000		3,320,000
Imputed interest	(149,000)		(149,000)
Lease liabilities	$ 3,171,000		3,171,000
Payments related to lease agreements that the Corporation has not obtained control of the real estate properties			$ 4,940,000
Number of lease agreements that the Corporation has not obtained control of the real estate properties | lease			2

Equity, Other Comprehensive I_3

Equity, Other Comprehensive Income and Earnings Per Share - Equity and Noncontrolling Interest (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2019	Sep. 30, 2018
Shareholders’ Equity
Issuance of noncontrolling interest		$ 490
C&F Select LLC
Shareholders’ Equity
Ownership interest issued (as a percent)		49.00%
Issuance of noncontrolling interest		$ 490
Common Stock
Shareholders’ Equity
Shares repurchased (in shares)	21,337	86,523
Aggregate cost of Shares repurchased	$ 1,100	$ 4,390
Number of shares withheld from employees to satisfy tax withholding obligations		5,341	3,947

Equity, Other Comprehensive I_4

Equity, Other Comprehensive Income and Earnings Per Share - Accumulated Other Comprehensive Loss (Details) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Equity, Other Comprehensive Income and Earnings Per Share
Deferred taxes included in AOCI	$ 628,000	$ 1,230,000
Net unrealized (losses) gains on securities	1,575,000	(1,375,000)
Net unrecognized (losses) gains on cash flow hedges	(381,000)	215,000
Net unrecognized losses on defined benefit plan	(3,441,000)	(3,512,000)
Total accumulated other comprehensive loss	$ (2,247,000)	$ (4,672,000)	[1]
[1]	Derived from audited consolidated financial statements.

Equity, Other Comprehensive I_5

Equity, Other Comprehensive Income and Earnings Per Share - Earnings Per Share (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Components of earnings per share calculations
Net income attributable to C&F Financial Corporation	$ 4,880	$ 5,101	$ 14,494	$ 14,063
Weighted average shares outstanding—basic	3,430,298	3,503,371	3,459,191	3,502,550
Weighted average shares outstanding—diluted	3,430,298	3,503,371	3,459,191	3,502,550

Employee Benefit Plans (Details

Employee Benefit Plans (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Components of net periodic benefit cost
Service cost, included in salaries and employee benefits	$ 305	$ 309	$ 914	$ 923
Other components of net periodic benefit cost:
Interest cost	152	138	456	384
Expected return on plan assets	(324)	(373)	(973)	(1,039)
Amortization of prior service credit	(17)	(16)	(51)	(46)
Recognized net actuarial losses	47	32	141	93
Other components of net periodic benefit cost, included in other noninterest income	(142)	(219)	(427)	(608)
Net periodic benefit cost	$ 163	$ 90	$ 487	$ 315

Fair Value of Assets and Liab_3

Fair Value of Assets and Liabilities - Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Securities available for sale
Securities available for sale	$ 190,869	$ 214,910	[1]
Interest rate swaps on loans | Cash flow hedges
Securities available for sale
Derivatives		289
Liabilities:
Derivatives	592
Recurring
Securities available for sale
Securities available for sale	190,869	214,910
Loans held for sale	98,357	41,895
Total assets measured at fair value	294,470	259,337
Liabilities:
Derivatives	4,132	1,607
Recurring | Cash flow hedges
Securities available for sale
Derivatives		289
Liabilities:
Derivatives	592
Recurring | IRLC
Securities available for sale
Derivatives	1,760	636
Recurring | Interest rate swaps on loans
Securities available for sale
Derivatives	3,484	1,607
Liabilities:
Derivatives	3,484	1,607
Recurring | Forward sales of TBA securities
Liabilities:
Derivatives	56
Level 2 | Recurring
Securities available for sale
Securities available for sale	190,869	214,910
Loans held for sale	98,357	41,895
Total assets measured at fair value	294,470	259,337
Liabilities:
Derivatives	4,132	1,607
Level 2 | Recurring | Cash flow hedges
Securities available for sale
Derivatives		289
Liabilities:
Derivatives	592
Level 2 | Recurring | IRLC
Securities available for sale
Derivatives	1,760	636
Level 2 | Recurring | Interest rate swaps on loans
Securities available for sale
Derivatives	3,484	1,607
Liabilities:
Derivatives	3,484	1,607
Level 2 | Recurring | Forward sales of TBA securities
Liabilities:
Derivatives	56
U.S. government agencies and corporations
Securities available for sale
Securities available for sale	22,180	17,473
U.S. government agencies and corporations | Recurring
Securities available for sale
Securities available for sale	22,180	17,473
U.S. government agencies and corporations | Level 2 | Recurring
Securities available for sale
Securities available for sale	22,180	17,473
Mortgage-backed securities
Securities available for sale
Securities available for sale	89,701	104,983
Mortgage-backed securities | Recurring
Securities available for sale
Securities available for sale	89,701	104,983
Mortgage-backed securities | Level 2 | Recurring
Securities available for sale
Securities available for sale	89,701	104,983
Obligations of states and political subdivisions
Securities available for sale
Securities available for sale	78,988	92,454
Obligations of states and political subdivisions | Recurring
Securities available for sale
Securities available for sale	78,988	92,454
Obligations of states and political subdivisions | Level 2 | Recurring
Securities available for sale
Securities available for sale	$ 78,988	$ 92,454
[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) - Fair Value, Measurements, Nonrecurring [Member] $ in Thousands	Sep. 30, 2019USD ($)	Dec. 31, 2018USD ($)
Fair value assets and liabilities - Nonrecurring Basis
Financial assets measured at fair value on a non-recurring basis	$ 370	$ 348
Impaired loans, net
Fair value assets and liabilities - Nonrecurring Basis
Financial assets measured at fair value on a non-recurring basis	102	102
Other real estate owned, net
Fair value assets and liabilities - Nonrecurring Basis
Financial assets measured at fair value on a non-recurring basis	268	246
Level 3
Fair value assets and liabilities - Nonrecurring Basis
Financial assets measured at fair value on a non-recurring basis	370	348
Level 3 | Impaired loans, net
Fair value assets and liabilities - Nonrecurring Basis
Financial assets measured at fair value on a non-recurring basis	$ 102	102
Impaired loans, input	0.30
Impaired loans, net, valuation technique	cffi:ValuationTechniqueAppraisalsMember
Impaired loans, net, measurement input	us-gaap:MeasurementInputDiscountRateMember
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	$ 268	$ 246
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 [Member]
Fair value assets and liabilities - Nonrecurring Basis
Other real estate owned, input	0.33
Level 3 | Other real estate owned, net | Maximum [Member]
Fair value assets and liabilities - Nonrecurring Basis
Other real estate owned, input	0.75

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, 2019	Dec. 31, 2018
Assets:
Securities available for sale	$ 190,869	$ 214,910	[1]
Bank-owned life insurance	16,348	16,065	[1]
Carrying Value
Assets:
Cash and short-term investments	145,794	115,013
Securities available for sale	190,869	214,910
Loans, net	1,055,320	1,028,097
Loans held for sale	98,357	41,895
Bank-owned life insurance	16,348	16,065
Accrued interest receivable	6,685	7,436
Financial liabilities:
Demand deposits	836,236	835,101
Time deposits	412,344	346,560
Borrowings	161,660	159,691
Accrued interest payable	1,263	920
Total Fair Value
Assets:
Cash and short-term investments	145,794	115,013
Securities available for sale	190,869	214,910
Loans, net	1,061,512	1,021,145
Loans held for sale	98,357	41,895
Bank-owned life insurance	16,348	16,065
Accrued interest receivable	6,685	7,436
Financial liabilities:
Demand deposits	836,236	835,101
Time deposits	412,374	343,507
Borrowings	155,269	152,015
Accrued interest payable	1,263	920
Total Fair Value | Level 1
Assets:
Cash and short-term investments	145,794	115,013
Accrued interest receivable	6,685	7,436
Financial liabilities:
Demand deposits	836,236	835,101
Accrued interest payable	1,263	920
Total Fair Value | Level 2
Assets:
Securities available for sale	190,869	214,910
Loans held for sale	98,357	41,895
Bank-owned life insurance	16,348	16,065
Financial liabilities:
Time deposits	412,374	343,507
Borrowings	155,269	152,015
Total Fair Value | Level 3
Assets:
Loans, net	1,061,512	1,021,145
IRLC | Carrying Value
Assets:
Derivatives	1,760	636
IRLC | Total Fair Value
Assets:
Derivatives	1,760	636
IRLC | Total Fair Value | Level 2
Assets:
Derivatives	1,760	636
Interest rate swaps on loans | Carrying Value
Assets:
Derivatives	3,484	1,607
Financial liabilities:
Derivatives	3,484	1,607
Interest rate swaps on loans | Total Fair Value
Assets:
Derivatives	3,484	1,607
Financial liabilities:
Derivatives	3,484	1,607
Interest rate swaps on loans | Total Fair Value | Level 2
Assets:
Derivatives	3,484	1,607
Financial liabilities:
Derivatives	3,484	1,607
Forward sales of TBA securities | Carrying Value
Financial liabilities:
Derivatives	56
Forward sales of TBA securities | Total Fair Value
Financial liabilities:
Derivatives	56
Forward sales of TBA securities | Total Fair Value | Level 2
Financial liabilities:
Derivatives	56
Cash flow hedges | Carrying Value
Assets:
Derivatives		289
Financial liabilities:
Derivatives	592
Cash flow hedges | Total Fair Value
Assets:
Derivatives		289
Financial liabilities:
Derivatives	592
Cash flow hedges | Total Fair Value | Level 2
Assets:
Derivatives		289
Financial liabilities:
Derivatives	592
Cash flow hedges | Interest rate swaps on loans
Assets:
Derivatives		$ 289
Financial liabilities:
Derivatives	$ 592
[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, 2019USD ($)	Sep. 30, 2018USD ($)	Sep. 30, 2019USD ($)segment	Sep. 30, 2018USD ($)	Dec. 31, 2018USD ($)	[1]
Business Segments
Number of Operating Segments | segment			3
Revenues:
Interest income	$ 23,992	$ 23,691	$ 71,219	$ 69,086
Gains on sales of loans	3,205	1,752	8,296	6,399
Other noninterest income	5,025	4,875	15,239	13,915
Total operating income	32,222	30,318	94,754	89,400
Expenses:
Provision for loan losses	1,800	2,400	6,005	7,700
Interest expense	3,769	2,803	10,724	8,043
Salaries and employee benefits	11,730	10,967	35,132	32,773
Other noninterest expenses	8,572	7,707	24,396	23,201
Total operating expenses	25,871	23,877	76,257	71,717
Income (loss) before income taxes	6,351	6,441	18,497	17,683
Income tax expense (benefit)	1,466	1,340	3,999	3,620
Net income	4,885	5,101	14,498	14,063
Total assets	1,619,381	1,499,604	1,619,381	1,499,604	$ 1,521,411
Goodwill	14,425	14,425	14,425	14,425	$ 14,425
Capital expenditures	530	759	2,001	2,447
Operating Segments | Retail Banking
Revenues:
Interest income	15,060	14,350	44,803	40,719
Other noninterest income	2,874	2,971	8,899	8,486
Total operating income	17,934	17,321	53,702	49,205
Expenses:
Provision for loan losses			110
Interest expense	2,684	1,727	7,352	4,975
Salaries and employee benefits	7,173	6,851	21,718	20,091
Other noninterest expenses	5,224	4,958	15,267	14,776
Total operating expenses	15,081	13,536	44,447	39,842
Income (loss) before income taxes	2,853	3,785	9,255	9,363
Income tax expense (benefit)	460	627	1,501	1,449
Net income	2,393	3,158	7,754	7,914
Total assets	1,436,986	1,329,507	1,436,986	1,329,507
Goodwill	3,702	3,702	3,702	3,702
Capital expenditures	453	692	1,741	2,286
Operating Segments | Mortgage Banking
Revenues:
Interest income	814	602	1,833	1,468
Gains on sales of loans	3,205	1,752	8,296	6,399
Other noninterest income	1,426	1,246	4,232	3,349
Total operating income	5,445	3,600	14,361	11,216
Expenses:
Interest expense	541	282	1,113	642
Salaries and employee benefits	1,742	1,406	5,133	4,409
Other noninterest expenses	1,526	1,248	4,105	3,841
Total operating expenses	3,809	2,936	10,351	8,892
Income (loss) before income taxes	1,636	664	4,010	2,324
Income tax expense (benefit)	426	174	1,051	620
Net income	1,210	490	2,959	1,704
Total assets	115,547	60,592	115,547	60,592
Capital expenditures	60	52	136	111
Operating Segments | Consumer Finance
Revenues:
Interest income	10,442	10,650	30,952	32,230
Other noninterest income	132	142	465	552
Total operating income	10,574	10,792	31,417	32,782
Expenses:
Provision for loan losses	1,800	2,400	5,895	7,700
Interest expense	2,596	2,418	7,765	6,900
Salaries and employee benefits	2,233	2,160	6,581	6,653
Other noninterest expenses	1,334	1,381	4,120	4,076
Total operating expenses	7,963	8,359	24,361	25,329
Income (loss) before income taxes	2,611	2,433	7,056	7,453
Income tax expense (benefit)	710	664	1,921	2,030
Net income	1,901	1,769	5,135	5,423
Total assets	316,158	300,389	316,158	300,389
Goodwill	10,723	10,723	10,723	10,723
Capital expenditures	17	12	57	47
Operating Segments | Other Segments [Member]
Revenues:
Interest income		4	4	4
Other noninterest income	593	516	1,643	1,528
Total operating income	593	520	1,647	1,532
Expenses:
Interest expense	272	291	867	861
Salaries and employee benefits	582	550	1,700	1,620
Other noninterest expenses	488	120	904	508
Total operating expenses	1,342	961	3,471	2,989
Income (loss) before income taxes	(749)	(441)	(1,824)	(1,457)
Income tax expense (benefit)	(130)	(125)	(474)	(479)
Net income	(619)	(316)	(1,350)	(978)
Total assets	6,000	4,396	6,000	4,396
Capital expenditures		3	67	3
Intersegment Eliminations [Member]
Revenues:
Interest income	(2,324)	(1,915)	(6,373)	(5,335)
Total operating income	(2,324)	(1,915)	(6,373)	(5,335)
Expenses:
Interest expense	(2,324)	(1,915)	(6,373)	(5,335)
Total operating expenses	(2,324)	(1,915)	(6,373)	(5,335)
Total assets	$ (255,310)	$ (195,280)	$ (255,310)	$ (195,280)
[1]	Derived from audited consolidated financial statements.

Business Segments - Merger Rela

Business Segments - Merger Related Expenses and Segment Debt (Details)	3 Months Ended	9 Months Ended
	Sep. 30, 2019USD ($)	Sep. 30, 2019USD ($)item
Mortgage Banking
Business Segments
Number of intersegment lines of credit | item		2
Mortgage Banking | FHLB Advances [Member] | Minimum [Member]
Business Segments
Variable rate, spread (as a percent)		0.50%
Mortgage Banking | FHLB Advances [Member] | Maximum [Member]
Business Segments
Variable rate, spread (as a percent)		1.75%
Consumer Finance | Minimum [Member]
Business Segments
Variable rate, spread (as a percent)		2.00%
Consumer Finance | Maximum [Member]
Business Segments
Variable rate, spread (as a percent)		8.00%
Consumer Finance | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member]
Business Segments
Variable rate, spread (as a percent)		2.00%
Peoples Bankshares, Incorporated (Peoples)
Business Segments
Merger related expenses	$ 409,000	$ 409,000
Merger related expenses, after income taxes	389,000	389,000
Peoples Bankshares, Incorporated (Peoples) | Retail Banking
Business Segments
Merger related expenses	104,000	104,000
Merger related expenses, after income taxes	$ 89,000	$ 89,000

Commitments and Contingent Li_2

Commitments and Contingent Liabilities - Loan Commitments (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Standby Letters of Credit
Commitments and Contingent Liabilities
Face amount of asset	$ 18,510	$ 19,340
Loan commitments
Commitments and Contingent Liabilities
Face amount of asset	$ 254,170	$ 244,170

Commitments and Contingent Li_3

Commitments and Contingent Liabilities - Other (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Indemnification reserve for recourse provisions
Commitments and Contingent Liabilities
Allowance for indemnifications	$ 2,470	$ 2,540
C&F Mortgage
Commitments and Contingent Liabilities
Recourse period for early payment default, minimum	90 days
Recourse period for early payment default, maximum	1 year

Derivative Financial Instrume_3

Derivative Financial Instruments (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Derivatives and other information
Changes in fair value of interest rate swaps	$ 0
Interest rate swaps on loans | Cash flow hedges
Derivatives and other information
Notional amount	25,000	$ 25,000
Assets		289
Liabilities	592
Matched interest rate swap with borrower | Not designated as hedges
Derivatives and other information
Notional amount	66,305	45,961
Assets	3,484	216
Liabilities		1,391
Matched interest rate swap with counterparty | Not designated as hedges
Derivatives and other information
Notional amount	66,305	45,961
Assets		1,391
Liabilities	3,484	216
IRLC | Not designated as hedges
Derivatives and other information
Notional amount	116,927	44,324
Assets	1,760	$ 636
Forward sales of TBA securities | Not designated as hedges
Derivatives and other information
Notional amount	23,250
Liabilities	56
C&F Mortgage
Derivatives and other information
IRLCs	95,990
C&F Mortgage | Best-efforts forward sales contracts
Derivatives and other information
Mortgage loans held for sale	84,220
C&F Mortgage | Mandatory-delivery forward sales contracts
Derivatives and other information
Mortgage loans held for sale	$ 5,440

Other Noninterest Expenses (Det

Other Noninterest Expenses (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Other Noninterest Expenses
Data processing fees	$ 2,093	$ 1,879	$ 5,989	$ 5,524
Professional fees	1,061	634	2,414	2,152
Marketing and advertising expenses	485	379	1,293	1,222
Travel and educational expenses	290	257	996	928
Telecommunication expenses	337	336	985	1,015
All other noninterest expenses	2,080	2,015	6,155	6,098
Total Other Noninterest Expenses	$ 6,346	$ 5,500	$ 17,832	$ 16,939