C&F Financial (CFFI) 10-Q3 Aug 212021 Q2 Quarterly reportFinancial data

Company Profile

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
Document And Entity Information - shares	Jun. 30, 2021	Jul. 31, 2021
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2021
Document Transition Report	false
Entity File Number	000-23423
Entity Registrant Name	C & F FINANCIAL CORP
Entity Incorporation, State or Country Code	VA
Entity Tax Identification Number	54-1680165
Entity Address, Address Line One	3600 La Grange Parkway
Entity Address, City or Town	Toano
Entity Address, State or Province	VA
Entity Address, Postal Zip Code	23168
City Area Code	804
Local Phone Number	843-2360
Title of 12(b) Security	Common Stock, $1.00 par value per share
Trading Symbol	CFFI
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		3,592,477
Entity Central Index Key	0000913341
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2
Amendment Flag	false

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Assets
Cash and due from banks	$ 18,724	$ 17,742
Interest-bearing deposits in other banks	150,741	68,927
Total cash and cash equivalents	169,465	86,669
Securities-available for sale at fair value, amortized cost of $353,341 and $280,824, respectively	356,886	286,389
Loans held for sale, at fair value	119,038	214,266
Loans, net of allowance for loan losses of $38,951 and $39,156, respectively	1,348,293	1,313,250
Restricted stock, at cost	1,027	1,636
Corporate premises and equipment, net	45,495	44,132
Other real estate owned, net of valuation allowance of $32 and $207, respectively	857	907
Accrued interest receivable	7,382	8,103
Goodwill	25,191	25,191
Other intangible assets, net	2,134	2,291
Bank-owned life insurance	20,440	20,205
Net deferred tax asset	13,786	13,555
Other assets	58,650	69,716
Total assets	2,168,644	2,086,310
Deposits
Noninterest-bearing demand deposits	551,382	501,945
Savings and interest-bearing demand deposits	830,195	780,645
Time deposits	449,985	469,583
Total deposits	1,831,562	1,752,173
Short-term borrowings	23,570	20,455
Long-term borrowings	30,506	30,398
Trust preferred capital notes	25,334	25,316
Accrued interest payable	851	1,109
Other liabilities	55,023	62,388
Total liabilities	1,966,846	1,891,839
Commitments and contingent liabilities (Note 11)
Equity
Common stock ($1.00 par value, 8,000,000 shares authorized, 3,591,902 and 3,670,301 shares issued and outstanding, respectively, includes 152,622 and 155,945 of unvested shares, respectively)	3,439	3,514
Additional paid-in capital	17,643	21,427
Retained earnings	183,043	170,819
Accumulated other comprehensive loss, net	(2,924)	(1,955)
Equity attributable to C&F Financial Corporation	201,201	193,805
Noncontrolling interest	597	666
Total equity	201,798	194,471
Total liabilities and equity	$ 2,168,644	$ 2,086,310

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Consolidated Balance Sheets
Available-for-sale securities, amortized cost	$ 353,341	$ 280,824
Loans, allowance for loan losses	38,951	39,156
Other real estate owned, valuation allowance	$ 32	$ 207
Common stock par value (in dollars per share)	$ 1	$ 1
Common stock, shares authorized	8,000,000	8,000,000
Common stock, shares issued	3,591,902	3,670,301
Common stock, shares outstanding	3,591,902	3,670,301
Common stock, unvested shares	152,622	155,945

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Consolidated Statements of Income - USD ($) $ in Thousands	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Interest income
Interest and fees on loans	$ 22,466	$ 22,204	$ 44,279	$ 45,101
Interest on interest-bearing deposits and federal funds sold	48	52	94	650
Interest and dividends on securities
U.S. government agencies and corporations	175	120	300	246
Mortgage-backed securities	506	543	915	1,063
Tax-exempt obligations of states and political subdivisions	436	513	905	1,009
Taxable obligations of states and political subdivisions	94	108	184	200
Other	141	44	265	93
Total interest income	23,866	23,584	46,942	48,362
Interest expense
Savings and interest-bearing deposits	344	355	703	941
Time deposits	1,053	2,131	2,361	4,430
Borrowings	454	557	903	1,558
Trust preferred capital notes	287	287	571	576
Total interest expense	2,138	3,330	4,538	7,505
Net interest income	21,728	20,254	42,404	40,857
Provision for loan losses	(600)	3,600	(320)	6,250
Net interest income after provision for loan losses	22,328	16,654	42,724	34,607
Noninterest income
Gains on sales of loans	5,947	4,605	13,005	8,281
Mortgage banking fee income	1,648	1,986	3,504	3,291
Interchange income	1,471	1,141	2,789	2,230
Service charges on deposit accounts	828	639	1,647	1,641
Wealth management services income, net	685	748	1,387	1,333
Mortgage lender services income	615	400	1,393	642
Other service charges and fees	413	394	802	769
Net gains on sales, maturities and calls of available for sale securities	6	3	38	7
Other income, net	1,487	1,912	2,891	382
Total noninterest income	13,100	11,828	27,456	18,576
Noninterest expenses
Salaries and employee benefits	15,714	14,354	31,327	25,171
Occupancy	2,190	2,154	4,550	4,201
Other	6,998	7,284	14,325	14,505
Total noninterest expenses	24,902	23,792	50,202	43,877
Income before income taxes	10,526	4,690	19,978	9,306
Income tax expense	2,436	947	4,723	1,924
Net income	8,090	3,743	15,255	7,382
Less net income (loss) attributable to noncontrolling interest	82	(3)	186	58
Net income attributable to C&F Financial Corporation	$ 8,008	$ 3,746	$ 15,069	$ 7,324
Net income per share - basic and diluted (in dollars per share)	$ 2.19	$ 1.03	$ 4.11	$ 2.01

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income		$ 8,090	$ 3,743	$ 15,255	$ 7,382
Defined benefit plan:
Reclassification of recognized net actuarial losses into net income1	[1]	61	57	121	99
Related income tax effects		(12)	(12)	(25)	(21)
Amortization of prior service credit into net income1	[1]	(17)	(17)	(34)	(34)
Related income tax effects		3	3	7	7
Defined benefit plan, net of tax		35	31	69	51
Cash flow hedges:
Unrealized holding (losses) gains arising during the period		(235)	(154)	755	(2,128)
Related income tax effects		61	39	(194)	547
Amortization of hedging gains into net income2	[2]	(2)	(3)	(4)	(6)
Related income tax effects			1	1	2
Cash flow hedges, net of tax		(176)	(117)	558	(1,585)
Securities available for sale:
Unrealized holding gains (losses) arising during the period		989	1,779	(1,982)	3,988
Related income tax effects		(207)	(373)	416	(837)
Reclassification of net realized gains into net income3	[3]	(6)	(3)	(38)	(7)
Related income tax effects		1		8	1
Securities available for sale, net of tax		777	1,403	(1,596)	3,145
Other comprehensive income (loss), net of tax		636	1,317	(969)	1,611
Comprehensive income		8,726	5,060	14,286	8,993
Less comprehensive income (loss) attributable to noncontrolling interest		82	(3)	186	58
Comprehensive income attributable to C&F Financial Corporation		$ 8,644	$ 5,063	$ 14,100	$ 8,935

[1]	These items are included in the computation of net periodic benefit cost and are included in “Noninterest income – Other income, net” on the Consolidated Statements of Income. See “Note 8: Employee Benefit Plans,” for additional information.
[2]	These items are included in “Interest expense – Trust preferred capital notes” on the Consolidated Statements of Income.
[3]	These items are included in “Net gains on sales, maturities and calls of available for sale securities” on the Consolidated Statements of Income.

Consolidated Statements of Equi

Consolidated Statements of Equity - USD ($) $ in Thousands	Common Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Loss, Net	Noncontrolling Interest	Total
Balance, beginning of the period at Dec. 31, 2019	$ 3,296	$ 9,503	$ 154,248	$ (2,249)	$ 481	$ 165,279
Comprehensive income:
Net income			7,324		58	7,382
Other comprehensive income (loss)				1,611		1,611
Share-based compensation		701				701
Restricted stock vested	16	(16)
Acquisition of Peoples Bankshares, Incorporated	210	11,402				11,612
Common stock issued	2	69				71
Common stock purchased	(14)	(604)				(618)
Cash dividends declared			(2,773)			(2,773)
Balance, end of period at Jun. 30, 2020	3,510	21,055	158,799	(638)	539	183,265
Balance, beginning of the period at Mar. 31, 2020	3,509	20,710	156,438	(1,955)	542	179,244
Comprehensive income:
Net income			3,746		(3)	3,743
Other comprehensive income (loss)				1,317		1,317
Share-based compensation		312				312
Common stock issued	1	33				34
Cash dividends declared			(1,385)			(1,385)
Balance, end of period at Jun. 30, 2020	3,510	21,055	158,799	(638)	539	183,265
Balance, beginning of the period at Dec. 31, 2020	3,514	21,427	170,819	(1,955)	666	194,471
Comprehensive income:
Net income			15,069		186	15,255
Other comprehensive income (loss)				(969)		(969)
Share-based compensation		820				820
Restricted stock vested	20	(20)
Common stock issued	3	83				86
Common stock purchased	(98)	(4,667)				(4,765)
Cash dividends declared			(2,845)			(2,845)
Distributions to noncontrolling interest					(255)	(255)
Balance, end of period at Jun. 30, 2021	3,439	17,643	183,043	(2,924)	597	201,798
Balance, beginning of the period at Mar. 31, 2021	3,526	21,622	176,481	(3,560)	623	198,692
Comprehensive income:
Net income			8,008		82	8,090
Other comprehensive income (loss)				636		636
Share-based compensation		428				428
Restricted stock vested	4	(4)
Common stock issued	1	41				42
Common stock purchased	(92)	(4,444)				(4,536)
Cash dividends declared			(1,446)			(1,446)
Distributions to noncontrolling interest					(108)	(108)
Balance, end of period at Jun. 30, 2021	$ 3,439	$ 17,643	$ 183,043	$ (2,924)	$ 597	$ 201,798

Consolidated Statements of Eq_2

Consolidated Statements of Equity (Parentheticals) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
CONSOLIDATED STATEMENTS OF EQUITY
Cash dividends declared - common stock (in dollars per share)	$ 0.40	$ 0.38	$ 0.78	$ 0.76

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Operating activities:
Net income	$ 15,255	$ 7,382
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Provision for loan losses	(320)	6,250
Accretion of certain acquisition-related discounts, net	(1,891)	(1,972)
Share-based compensation	820	701
Depreciation and amortization	2,390	1,957
Accretion of discounts and amortization of premiums on securities, net	1,731	941
Income from bank-owned life insurance	(209)	(206)
Pension expense	434	396
Proceeds from sales of loans held for sale	909,516	624,112
Origination of loans held for sale	(806,866)	(698,740)
Gains on sales of loans held for sale	(13,005)	(8,281)
Other (gains) losses, net	(451)	807
Change in other assets and liabilities:
Accrued interest receivable	721	(898)
Other assets	1,189	929
Accrued interest payable	(258)	(341)
Other liabilities	(3,395)	471
Net cash provided by (used in) operating activities	105,661	(66,492)
Investing activities:
Acquisition of Peoples Bankshares, Incorporated		19,101
Disposition of assets related to business combination		8,004
Proceeds from sales, maturities and calls of securities available for sale and payments on mortgage-backed securities	55,496	70,780
Purchases of securities available for sale	(129,706)	(107,964)
Maturities (purchases) of time deposits, net	4,693	(6,464)
Repayments on loans held for investment by non-bank affiliates	77,605	62,462
Purchases of loans held for investment by non-bank affiliates	(97,971)	(53,013)
Net increase in community banking loans held for investment	(8,770)	(102,276)
Purchases of corporate premises and equipment	(3,444)	(3,453)
Proceeds from sales of other real estate owned	457
Changes in collateral posted with other financial institutions, net	3,480	(9,270)
Other investing activities, net	671	319
Net cash used in investing activities	(97,489)	(121,774)
Financing activities:
Net increase in demand and savings deposits	98,987	189,256
Net decrease in time deposits	(19,459)	(6,394)
Net increase in short-term borrowings	3,115	6,288
Repayments of long-term borrowings		(82,553)
Repurchases of common stock	(4,765)	(618)
Cash dividends paid	(2,845)	(2,773)
Other financing activities, net	(409)	(73)
Net cash provided by financing activities	74,624	103,133
Net increase (decrease) in cash and cash equivalents	82,796	(85,133)
Cash and cash equivalents at beginning of period	86,669	165,433
Cash and cash equivalents at end of period	169,465	80,300
Supplemental cash flow disclosures:
Interest paid	4,957	8,010
Income taxes paid	5,632	2,130
Supplemental disclosure of noncash investing and financing activities:
Liabilities assumed to acquire right of use assets under operating leases	881	597
Liabilities assumed to acquire right of use assets under finance leases		2,181
Transfers from loans held for sale to loans held for investment	$ 3,717	$ 621

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
Summary of Significant Accounting Policies	Jun. 30, 2021
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	NOTE 1: Summary of Significant Accounting Policies Principles of Consolidation: The unaudited consolidated financial statements include the accounts of C&F Financial Corporation (the Corporation), its direct wholly-owned subsidiary, Citizens and Farmers Bank (the Bank or C&F Bank) and indirect subsidiaries that are wholly-owned or controlled. Subsidiaries that are less than wholly owned are fully consolidated if they are controlled by the Corporation or one of its subsidiaries, and the portion of any subsidiary not owned by the Corporation is reported as noncontrolling interest. 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 the Corporation conform to U.S. GAAP and to predominant practices within the banking industry. Nature of Operations: 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, originates and sells residential mortgages, provides mortgage loan origination services to third-party lenders 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. and CVB Title Services, Inc. were organized for the primary purpose of owning equity interests in an independent insurance agency and a full service title and settlement agency, respectively. Business segment data is presented in Note 10. Basis of Presentation: The COVID-19 pandemic has caused a significant disruption in economic activity worldwide, including in market areas served by the Corporation. Estimates for the allowance for loan losses at June 30, 2021 include probable losses related to the pandemic. While there have been signals of economic recovery and a resumption of many types of business activity, there remains significant uncertainty involved in the measurement of these losses. If economic conditions deteriorate further, then additional provision for loan losses may be required in future periods. It is unknown how long these conditions will last and what the ultimate financial impact will be to the Corporation. Reclassification: Business Combination: Derivative Financial Instruments: Income Taxes: Share-Based Compensation: A summary of activity for restricted stock awards during the first six months of 2021 and 2020 is presented below: 2021 Weighted- Average Grant Date Shares Fair Value Unvested, December 31, 2020 155,945 $ 48.52 Granted 20,262 44.03 Vested (20,395) 43.89 Forfeited (3,190) 45.44 Unvested, June 30, 2021 152,622 48.60 2020 Weighted- Average Grant Date Shares Fair Value Unvested, December 31, 2019 142,020 $ 48.88 Granted 14,650 53.22 Vested (16,230) 39.97 Forfeited (2,735) 5.89 Unvested, June 30, 2020 137,705 50.33 Recent Significant Accounting Pronouncements: In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-13, “ Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments Financial Instruments – Credit Losses (Topic 326): Targeted Transition Relief Financial Instruments—Credit losses (Topic 326), Derivatives and hedging (Topic 815), and Leases (Topic 842)—Effective dates, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Financial Instruments-Credit Losses (Topic 326) and Leases (Topic 842) Codification Improvements to Financial Instruments 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, and is continuing to develop and refine an approach to estimating the allowance for credit losses. 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 total 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. 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.

Business Combination

Business Combination	6 Months Ended
Business Combination	Jun. 30, 2021
Business Combination
Business Combination	NOTE 2: Business Combination On January 1, 2020, the Corporation completed its acquisition of Peoples. Peoples shareholders received 0.5366 shares of the Corporation’s common stock and $27.00 in cash for each share of Peoples common stock, with cash paid in lieu of any fractional shares of the Corporation’s common stock. In connection with the transaction, the Corporation paid aggregate cash consideration of $10.58 million and issued 209,871 shares of its common stock to the shareholders of Peoples. The Corporation accounted for the acquisition using the acquisition method of accounting in accordance with ASC 805, Business Combinations The following table presents as of January 1, 2020 the total consideration paid by the Corporation in connection with the acquisition of Peoples, the fair values of the assets acquired and liabilities assumed, and the resulting goodwill. Amounts Recognized as of (Dollars in thousands) January 1, 2020 Purchase price: Cash paid $ 10,579 Common stock issued 11,612 Total purchase price $ 22,191 Identifiable assets acquired: Cash and cash equivalents $ 29,680 Securities available for sale 17,169 Loans 124,195 Accrued interest receivable 430 Corporate premises and equipment 3,105 Other real estate owned 281 Core deposit intangible asset 1,711 Bank-owned life insurance 3,591 Investment in small business investment company 1,493 Other receivables 5,234 Other assets 3,658 Total identifiable assets acquired 190,547 Identifiable liabilities assumed: Demand and savings deposits 94,798 Time deposits 77,018 Borrowings 4,245 Accrued interest payable 260 Salaries, benefits and deferred compensation 2,054 Other liabilities 747 Total identifiable liabilities assumed 179,122 Net identifiable assets acquired $ 11,425 Goodwill resulting from acquisition $ 10,766 In connection with the acquisition, the Corporation recorded approximately $10.77 million of goodwill and $1.71 million of other intangible assets related to the core deposits of Peoples. The goodwill arising from the acquisition of Peoples is not deductible for income taxes. The core deposit intangible asset (CDI) will be amortized over a period of 15 years using a declining balance method. Loans acquired from Peoples had aggregate outstanding principal of $131.92 million and an estimated fair value of $124.20 million. The discount between the outstanding principal balance and fair value represents expected credit losses and adjustments for market interest rates. Under the acquisition method, the allowance for loan losses recorded in the books of Peoples in the amount of $2.87 million was not carried over into the books of the Corporation. Loans that have evidence of deterioration in credit quality since origination are categorized as purchased credit impaired (PCI). PCI loans acquired from Peoples included medical student loans with an outstanding principal balance of $4.28 million and a fair value of $635,000 at January 1, 2020, which were purchased by Peoples and the performance of which was previously backed by surety bonds. The surety bonds were terminated in 2018 when the issuer of the bond was placed into liquidation by its insurance regulator, and replacement surety bond coverage was not obtained. The Bank subsequently sold these medical student loans during the year ending December 31, 2020. Information about PCI loans acquired from Peoples as of January 1, 2020 is as follows: (Dollars in thousands) January 1, 2020 Contractual principal and interest due $ 20,310 Nonaccretable difference (7,679) Expected cash flows 12,631 Accretable yield (3,372) Purchased credit impaired loans - estimated fair value $ 9,259 Fair values of the major categories of assets acquired and liabilities assumed were determined as follows: Loans: Core Deposit Intangible: Deposits: The revenue and earnings amounts specific to Peoples that are included in the consolidated results for 2020 are not readily determinable. Disclosure of these amounts is impracticable due to the merging of certain processes and systems at the acquisition date. The Corporation recorded merger related expenses in connection with the acquisition of Peoples of $439,000 ($347,000 after income taxes) for the three months ended June 30, 2020 and $1.40 million ($1.13 million after income taxes) for the six months ended June 30, 2020. The Corporation recorded aggregate merger related expenses of $2.10 million ($1.78 million after income taxes) during 2019 and 2020, including the integration of systems and operations and legal and consulting expenses, which were expensed as incurred.

Securities

Securities	6 Months Ended
Securities	Jun. 30, 2021
Securities
Securities	NOTE 3: Securities The Corporation’s debt securities, all of which are classified as available for sale, are summarized as follows: June 30, 2021 Gross Gross Amortized Unrealized Unrealized (Dollars in thousands) Cost Gains Losses Fair Value U.S. government agencies and corporations $ 61,401 $ 92 $ (595) $ 60,898 Mortgage-backed securities 178,174 2,415 (367) 180,222 Obligations of states and political subdivisions 98,385 2,078 (179) 100,284 Corporate and other debt securities 15,381 140 (39) 15,482 $ 353,341 $ 4,725 $ (1,180) $ 356,886 December 31, 2020 Gross Gross Amortized Unrealized Unrealized (Dollars in thousands) Cost Gains Losses Fair Value U.S. government agencies and corporations $ 48,171 $ 121 $ (10) $ 48,282 Mortgage-backed securities 120,664 3,165 (115) 123,714 Obligations of states and political subdivisions 100,405 2,436 (36) 102,805 Corporate and other debt securities 11,584 47 (43) 11,588 $ 280,824 $ 5,769 $ (204) $ 286,389 The amortized cost and estimated fair value of securities at June 30, 2021, 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. June 30, 2021 Amortized (Dollars in thousands) Cost Fair Value Due in one year or less $ 63,814 $ 63,773 Due after one year through five years 184,816 188,212 Due after five years through ten years 95,707 96,001 Due after ten years 9,004 8,900 $ 353,341 $ 356,886 The following table presents the gross realized gains and losses on and the proceeds from the sales, maturities and calls of securities. There were no sales of securities during the three months ended June 30, 2021 or 2020. During the six months ended June 30, 2021 and 2020, $2.30 million and $5.99 million of proceeds, respectively, were related to sales of securities. Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2021 2020 2021 2020 Realized gains from sales, maturities and calls of securities: Gross realized gains $ 6 $ 3 $ 38 $ 7 Gross realized losses — — — — Net realized gains $ 6 $ 3 $ 38 $ 7 Proceeds from sales, maturities, calls and paydowns of securities $ 21,784 $ 31,717 $ 55,496 $ 70,780 The Corporation pledges securities primarily to secure public deposits and repurchase agreements. Securities with an aggregate amortized cost of $150.52 million and an aggregate fair value of $153.39 million were pledged at June 30, 2021. Securities with an aggregate amortized cost of $146.66 million and an aggregate fair value of $150.13 million were pledged at December 31, 2020. Securities in an unrealized loss position at June 30, 2021, 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 $ 41,265 $ 551 $ 1,455 $ 44 $ 42,720 $ 595 Mortgage-backed securities 78,791 367 — — 78,791 367 Obligations of states and political subdivisions 14,139 179 — — 14,139 179 Corporate and other debt securities 7,766 39 — — 7,766 39 Total temporarily impaired securities $ 141,961 $ 1,136 $ 1,455 $ 44 $ 143,416 $ 1,180 There were 104 debt securities totaling $143.42 million of aggregate fair value considered temporarily impaired at June 30, 2021. The primary cause of the temporary impairments in the Corporation’s investments in debt securities was fluctuations in interest rates. The Corporation concluded that no other-than-temporary impairment existed in its securities portfolio at June 30, 2021, and no other-than-temporary impairment loss has been recognized in net income, based primarily on the fact that changes in fair value were caused primarily by fluctuations in interest rates, there were no securities with unrealized losses that were significant relative to their carrying amounts, securities with unrealized losses had generally high credit quality, 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 its investment, and issuers have continued to make timely payments of principal and interest. Additionally, 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. Securities in an unrealized loss position at December 31, 2020, 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 $ 12,719 $ 10 $ — $ — $ 12,719 $ 10 Mortgage-backed securities 15,691 115 — — 15,691 115 Obligations of states and political subdivisions 5,110 36 — — 5,110 36 Corporate and other debt securities 4,271 43 — — 4,271 43 Total temporarily impaired securities $ 37,791 $ 204 $ — $ — $ 37,791 $ 204 The Corporation’s investment in restricted stock totaled $1.03 million at June 30, 2021 and consisted of 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 June 30, 2021 and no impairment has been recognized.

Loans

Loans	6 Months Ended
Loans	Jun. 30, 2021
Loans
Loans	NOTE 4: Loans Major classifications of loans are summarized as follows: June 30, December 31, (Dollars in thousands) 2021 2020 Real estate – residential mortgage $ 218,189 $ 218,298 Real estate – construction 1 53,921 62,147 Commercial, financial and agricultural 2 730,177 700,215 Equity lines 43,782 48,466 Consumer 8,302 11,028 Consumer finance 332,873 312,252 1,387,244 1,352,406 Less allowance for loan losses (38,951) (39,156) Loans, net $ 1,348,293 $ 1,313,250 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 (which includes loans originated under the Paycheck Protection Program). Consumer loans included $198,000 and $284,000 of demand deposit overdrafts at June 30, 2021 and December 31, 2020, respectively. Loans acquired in business combinations are recorded in the Consolidated Balance Sheets at fair value at the acquisition date under the acquisition method of accounting. The outstanding principal balance and the carrying amount at June 30, 2021 and December 31, 2020 of loans acquired in business combinations were as follows: June 30, 2021 December 31, 2020 Acquired Loans - Acquired Loans - Acquired Loans - Acquired Loans - Purchased Purchased Acquired Loans - Purchased Purchased Acquired Loans - (Dollars in thousands) Credit Impaired Performing Total Credit Impaired Performing Total Outstanding principal balance $ 10,632 $ 68,873 $ 79,505 $ 12,760 $ 89,043 $ 101,803 Carrying amount Real estate – residential mortgage $ 804 $ 12,432 $ 13,236 $ 1,473 $ 15,117 $ 16,590 Real estate – construction — 1,078 1,078 — 1,077 1,077 Commercial, financial and agricultural 1 4,490 44,589 49,079 4,758 58,796 63,554 Equity lines 35 7,965 8,000 80 10,182 10,262 Consumer 41 1,465 1,506 48 1,924 1,972 Total acquired loans $ 5,370 $ 67,529 $ 72,899 $ 6,359 $ 87,096 $ 93,455 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): Six Months Ended June 30, (Dollars in thousands) 2021 2020 Accretable yield, balance at beginning of period $ 4,048 $ 4,721 Acquisition of Peoples — 3,372 Accretion (1,537) (1,687) Reclassification of nonaccretable difference due to improvement in expected cash flows 743 923 Other changes, net 84 115 Accretable yield, balance at end of period $ 3,338 $ 7,444 Loans on nonaccrual status were as follows: June 30, December 31, (Dollars in thousands) 2021 2020 Real estate – residential mortgage $ 271 $ 276 Commercial, financial and agricultural: Commercial business lending 2,349 2,428 Equity lines 187 191 Consumer 106 107 Consumer finance 138 402 Total loans on nonaccrual status $ 3,051 $ 3,404 The past due status of loans as of June 30, 2021 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 $ 560 $ 307 $ 145 $ 1,012 $ 804 $ 216,373 $ 218,189 $ — Real estate – construction: Construction lending — — — — — 38,729 38,729 — Consumer lot lending — — — — — 15,192 15,192 — Commercial, financial and agricultural: Commercial real estate lending 48 — — 48 4,490 477,676 482,214 — Land acquisition and development lending — — — — — 31,671 31,671 — Builder line lending — — — — — 28,233 28,233 — Commercial business lending — — — — — 188,059 188,059 — Equity lines — 72 — 72 35 43,675 43,782 — Consumer — — — — 41 8,261 8,302 — Consumer finance 5,064 694 138 5,896 — 326,977 332,873 — Total $ 5,672 $ 1,073 $ 283 $ 7,028 $ 5,370 $ 1,374,846 $ 1,387,244 $ — 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 $2.77 million and 90+ days past due of $283,000. The past due status of loans as of December 31, 2020 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 $ 1,100 $ 154 $ 176 $ 1,430 $ 1,473 $ 215,395 $ 218,298 $ 145 Real estate – construction: Construction lending — — — — — 49,659 49,659 — Consumer lot lending — — — — — 12,488 12,488 — Commercial, financial and agricultural: Commercial real estate lending — — — — 4,758 437,145 441,903 — Land acquisition and development lending — — — — — 37,724 37,724 — Builder line lending — — — — — 18,194 18,194 — Commercial business lending 24 — — 24 — 202,370 202,394 — Equity lines 52 — — 52 80 48,334 48,466 — Consumer 2 — — 2 48 10,978 11,028 — Consumer finance 8,249 967 402 9,618 — 302,634 312,252 — Total $ 9,427 $ 1,121 $ 578 $ 11,126 $ 6,359 $ 1,334,921 $ 1,352,406 $ 145 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 $2.86 million, 30-59 days past due of $115,000 and 90+ days past due of $433,000. There were no loan modifications during the three months ended June 30, 2021 and 2020 that were classified as a troubled debt restructuring (TDR). There was one loan modification during the six months ended June 30, 2021 that was classified as a TDR. This TDR was a modification of the payment structure of a residential mortgage loan with a recorded investment of $4,000 at the time of the modification. There was one loan modification during the six months ended June 30, 2020 that was classified as a TDR. This TDR was a modification of the payment structure of an equity line with a recorded investment of $84,000 at the time of modification. 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 three and six months ended June 30, 2021 and 2020. Impaired loans, which included TDRs of $2.90 million, and the related allowance at June 30, 2021 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 $ 1,651 $ 558 $ 982 $ 62 $ 1,661 $ 35 Commercial, financial and agricultural: Commercial real estate lending 1,393 — 1,395 92 1,395 35 Commercial business lending 2,402 — 2,349 572 2,375 — Equity lines 119 109 — — 116 1 Consumer 119 — 102 101 104 — Total $ 5,684 $ 667 $ 4,828 $ 827 $ 5,651 $ 71 Impaired loans, which included TDRs of $3.58 million, and the related allowance at December 31, 2020 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 $ 2,326 $ 931 $ 1,279 $ 77 $ 2,353 $ 105 Commercial, financial and agricultural: Commercial real estate lending 1,397 — 1,397 89 1,404 73 Commercial business lending 2,430 — 2,428 585 2,573 — Equity lines 120 111 — — 119 2 Consumer 147 — 132 128 154 3 Total $ 6,420 $ 1,042 $ 5,236 $ 879 $ 6,603 $ 183

Allowance for Loan Losses

Allowance for Loan Losses	6 Months Ended
Allowance for Loan Losses	Jun. 30, 2021
Allowance for Loan Losses
Allowance for Loan Losses	NOTE 5: Allowance for Loan Losses The following table presents the changes in the allowance for loan losses by major classification during the six months ended June 30, 2021: 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, 2020 $ 2,914 $ 975 $ 10,696 $ 687 $ 371 $ 23,513 $ 39,156 Provision (credited) charged to operations (113) (182) 331 (88) (88) (180) (320) Loans charged off — — — — (81) (2,442) (2,523) Recoveries of loans previously charged off 13 — 1 1 65 2,558 2,638 Balance at June 30, 2021 $ 2,814 $ 793 $ 11,028 $ 600 $ 267 $ 23,449 $ 38,951 The following table presents the changes in the allowance for loan losses by major classification during the six months ended June 30, 2020: 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, 2019 $ 2,080 $ 681 $ 7,121 $ 733 $ 465 $ 21,793 $ 32,873 Provision charged to operations 285 302 1,724 56 33 3,850 6,250 Loans charged off (4) — (18) — (133) (5,422) (5,577) Recoveries of loans previously charged off 64 — 2 — 105 2,377 2,548 Balance at June 30, 2020 $ 2,425 $ 983 $ 8,829 $ 789 $ 470 $ 22,598 $ 36,094 The following table presents, as of June 30, 2021, 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 $ 62 $ — $ 664 $ — $ 101 $ — $ 827 Collectively evaluated for impairment 2,752 793 10,364 600 166 23,449 38,124 Acquired loans - PCI — — — — — — — Total allowance $ 2,814 $ 793 $ 11,028 $ 600 $ 267 $ 23,449 $ 38,951 Loans: Individually evaluated for impairment $ 1,540 $ — $ 3,744 $ 109 $ 102 $ — $ 5,495 Collectively evaluated for impairment 215,845 53,921 721,943 43,638 8,159 332,873 1,376,379 Acquired loans - PCI 804 — 4,490 35 41 — 5,370 Total loans $ 218,189 $ 53,921 $ 730,177 $ 43,782 $ 8,302 $ 332,873 $ 1,387,244 The following table presents, as of December 31, 2020, 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 $ 77 $ — $ 674 $ — $ 128 $ — $ 879 Collectively evaluated for impairment 2,837 975 10,022 687 243 23,513 38,277 Acquired loans - PCI — — — — — — — Total allowance $ 2,914 $ 975 $ 10,696 $ 687 $ 371 $ 23,513 $ 39,156 Loans: Individually evaluated for impairment $ 2,210 $ — $ 3,825 $ 111 $ 132 $ — $ 6,278 Collectively evaluated for impairment 214,615 62,147 691,632 48,275 10,848 312,252 1,339,769 Acquired loans - PCI 1,473 — 4,758 80 48 — 6,359 Total loans $ 218,298 $ 62,147 $ 700,215 $ 48,466 $ 11,028 $ 312,252 $ 1,352,406 Loans by credit quality indicators as of June 30, 2021 were as follows: Special Substandard (Dollars in thousands) Pass Mention Substandard Nonaccrual Total 1 Real estate – residential mortgage $ 216,599 $ 864 $ 455 $ 271 $ 218,189 Real estate – construction: Construction lending 38,729 — — — 38,729 Consumer lot lending 15,192 — — — 15,192 Commercial, financial and agricultural: Commercial real estate lending 459,231 15,487 7,496 — 482,214 Land acquisition and development lending 31,671 — — — 31,671 Builder line lending 28,233 — — — 28,233 Commercial business lending 184,404 1,306 — 2,349 188,059 Equity lines 43,418 176 1 187 43,782 Consumer 8,155 41 — 106 8,302 $ 1,025,632 $ 17,874 $ 7,952 $ 2,913 $ 1,054,371 1 At June 30, 2021, the Corporation did not have any loans classified as Doubtful or Loss. Non- (Dollars in thousands) Performing Performing Total Consumer finance $ 332,735 $ 138 $ 332,873 Loans by credit quality indicators as of December 31, 2020 were as follows: Special Substandard (Dollars in thousands) Pass Mention Substandard Nonaccrual Total 1 Real estate – residential mortgage $ 215,712 $ 1,715 $ 595 $ 276 $ 218,298 Real estate – construction: Construction lending 49,659 — — — 49,659 Consumer lot lending 12,488 — — — 12,488 Commercial, financial and agricultural: Commercial real estate lending 415,506 15,507 10,890 — 441,903 Land acquisition and development lending 37,724 — — — 37,724 Builder line lending 18,194 — — — 18,194 Commercial business lending 196,743 3,124 99 2,428 202,394 Equity lines 48,140 132 3 191 48,466 Consumer 10,832 48 41 107 11,028 $ 1,004,998 $ 20,526 $ 11,628 $ 3,002 $ 1,040,154 1 At December 31, 2020, the Corporation did not have any loans classified as Doubtful or Loss. Non- (Dollars in thousands) Performing Performing Total Consumer finance $ 311,850 $ 402 $ 312,252

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets	6 Months Ended
Goodwill and Other Intangible Assets	Jun. 30, 2021
Goodwill and Other Intangible Assets
Goodwill and Other Intangible Assets	NOTE 6: Goodwill and Other Intangible Assets The carrying amount of goodwill was $25.19 million at June 30, 2021 and December 31, 2020. The following table presents the changes in goodwill during the six months ended June 30, 2020. There were no changes in the recorded balance of goodwill during the three and six months ended June 30, 2021. Community Consumer (Dollars in thousands) Banking Finance Total Balance as of January 1, 2020 $ 3,702 $ 10,723 $ 14,425 Acquisition of Peoples Bankshares, Incorporated 10,766 — 10,766 Balance at June 30, 2020 $ 14,468 $ 10,723 $ 25,191 The Corporation had $2.13 million and $2.29 million of other intangible assets as of June 30, 2021 and December 31, 2020, respectively. Other intangible assets were recognized in connection with the core deposits acquired from Peoples in 2020 and customer relationships acquired by C&F Wealth Management in 2016. The following table summarizes the gross carrying amounts and accumulated amortization of other intangible assets: June 30, December 31, 2021 2020 Gross Gross Carrying Accumulated Carrying Accumulated (Dollars in thousands) Amount Amortization Amount Amortization Amortizable intangible assets: Core deposit intangibles $ 1,711 $ (248) $ 1,711 $ (171) Other amortizable intangibles 1,405 (734) 1,405 (654) Total $ 3,116 $ (982) $ 3,116 $ (825) Amortization expense was $79,000 and $83,000 for the three months ended June 30, 2021 and 2020, respectively and $157,000 and $166,000 for the six months ended June 30, 2021 and 2020, respectively.

Equity, Other Comprehensive Inc

Equity, Other Comprehensive Income and Earnings Per Share	6 Months Ended
Equity, Other Comprehensive Income and Earnings Per Share	Jun. 30, 2021
Equity, Other Comprehensive Income and Earnings Per Share
Equity, Other Comprehensive Income and Earnings Per Share	NOTE 7: Equity, Other Comprehensive Income and Earnings Per Share Equity and Noncontrolling Interest The Corporation’s Board of Directors authorized a program, effective November 17, 2020 to repurchase up to 365,000 shares of the Corporation’s common stock through November 30, 2021 (the Repurchase Program). As of June 30, 2021, the Corporation has made aggregate common stock repurchases of 97,714 shares for an aggregate cost of $4.74 million under the Repurchase Program. There were The Corporation’s previous share repurchase program, which was authorized by the Board of Directors in May 2019, expired on May 31, 2020. During the six months ended June 30, 2020, the Corporation repurchased 8,963 shares of its common stock for an aggregate cost of $355,000 , under its previous share repurchase program. The Corporation did t repurchase any of its common stock during the three months ended June 30, 2020. Additionally during the six months ended June 30, 2021 and 2020, the Corporation withheld 7,311 shares and 5,069 shares of its common stock, respectively, from employees to satisfy tax withholding obligations upon vesting of restricted stock. Noncontrolling interest represents an ownership interest in C&F Select LLC, a subsidiary of C&F Mortgage, held by an unrelated investor. In exchange for issuing this noncontrolling interest in C&F Select LLC, C&F Bank received a note receivable from the investor for $490,000, which is included in loans in the Consolidated Balance Sheets and is secured by cash deposits at C&F Bank. Accumulated Other Comprehensive Loss, Net The following table presents the cumulative balances of the components of accumulated other comprehensive loss, net of deferred taxes of $842,000 and $630,000 as of June 30, 2021 and December 31, 2020, respectively. June 30, December 31, (Dollars in thousands) 2021 2020 Net unrealized gains on securities $ 2,801 $ 4,397 Net unrecognized losses on cash flow hedges (809) (1,367) Net unrecognized losses on defined benefit plan (4,916) (4,985) Total accumulated other comprehensive loss, net $ (2,924) $ (1,955) Earnings Per Share (EPS) The components of the Corporation’s EPS calculations are as follows: Three Months Ended June 30, (Dollars in thousands) 2021 2020 Net income attributable to C&F Financial Corporation $ 8,008 $ 3,746 Weighted average shares outstanding — 3,653,568 3,647,707 Six Months Ended June 30, (Dollars in thousands) 2021 2020 Net income attributable to C&F Financial Corporation $ 15,069 $ 7,324 Weighted average shares outstanding — 3,664,752 3,646,161 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	6 Months Ended
Employee Benefit Plans	Jun. 30, 2021
Employee Benefit Plans
Employee Benefit Plans	NOTE 8: 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 June 30, Six Months Ended June 30, (Dollars in thousands) 2021 2020 2021 2020 Components of net periodic benefit cost: Service cost, included in salaries and employee benefits $ 498 $ 415 $ 985 $ 801 Other components of net periodic benefit cost: Interest cost 113 140 229 275 Expected return on plan assets (427) (371) (867) (745) Amortization of prior service credit (17) (17) (34) (34) Amortization of net obligation at transition — — — — Recognized net actuarial losses 61 57 121 99 Other components of net periodic benefit cost, included in other noninterest income (270) (191) (551) (405) Net periodic benefit cost $ 228 $ 224 $ 434 $ 396

Fair Value of Assets and Liabil

Fair Value of Assets and Liabilities	6 Months Ended
Fair Value of Assets and Liabilities	Jun. 30, 2021
Fair Value of Assets and Liabilities
Fair Value of Assets and Liabilities	NOTE 9: 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. Investments in small business investment company funds. Loans held for sale. Derivative asset - IRLCs. Derivative asset/liability – interest rate swaps on loans. Derivative asset/liability – cash flow hedges. Derivative asset/liability – forward sales of TBA securities. 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. June 30, 2021 Fair Value Measurements Classified as 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 $ — $ 60,898 $ — $ 60,898 Mortgage-backed securities — 180,222 — 180,222 Obligations of states and political subdivisions — 100,284 — 100,284 Corporate and other debt securities — 15,482 — 15,482 Total securities available for sale — 356,886 — 356,886 Loans held for sale — 119,038 — 119,038 Derivatives IRLC — 3,382 — 3,382 Interest rate swaps on loans — 5,547 — 5,547 Total assets $ — $ 484,853 $ — $ 484,853 Liabilities: Derivatives Interest rate swaps on loans $ — $ 5,547 $ — $ 5,547 Cash flow hedges — 1,127 — 1,127 Forward sales of TBA securities — 43 — 43 Total liabilities $ — $ 6,717 $ — $ 6,717 December 31, 2020 Fair Value Measurements Classified as 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 $ — $ 48,282 $ — $ 48,282 Mortgage-backed securities — 123,714 — 123,714 Obligations of states and political subdivisions — 102,805 — 102,805 Corporate and other debt securities — 11,588 — 11,588 Total securities available for sale — 286,389 — 286,389 Loans held for sale — 214,266 — 214,266 Derivatives IRLC — 4,582 — 4,582 Interest rate swaps on loans — 8,185 — 8,185 Total assets $ — $ 513,422 $ — $ 513,422 Liabilities: Derivatives Interest rate swaps on loans $ — $ 8,185 $ — $ 8,185 Cash flow hedges — 1,882 — 1,882 Forward sales of TBA securities — 47 — 47 Total liabilities $ — $ 10,114 $ — $ 10,114 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. 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. Other Real Estate Owned (OREO). The following table presents the balances of assets measured at fair value on a nonrecurring basis. At June 30, 2021 and December 31, 2020 there were no impaired loans that were measured at fair value. June 30, 2021 Fair Value Measurements Classified as Assets at Fair (Dollars in thousands) Level 1 Level 2 Level 3 Value Other real estate owned, net $ — $ — $ 22 $ 22 Total $ — $ — $ 22 $ 22 December 31, 2020 Fair Value Measurements Classified as Assets at Fair (Dollars in thousands) Level 1 Level 2 Level 3 Value Other real estate owned, net $ — $ — $ 72 $ 72 Total $ — $ — $ 72 $ 72 The following table presents quantitative information about Level 3 fair value measurements for financial assets measured at fair value on a nonrecurring basis as of June 30, 2021 and December 31, 2020: Fair Value Measurements (Dollars in thousands) Fair Value Valuation Technique(s) Unobservable Inputs Range (Weighted Average) 1 At June 30, 2021: Other real estate owned, net $ 22 Appraisals Discount to reflect current market conditions and estimated selling costs 75% ( 75% ) Total $ 22 At December 31, 2020: Other real estate owned, net $ 72 Appraisals Discount to reflect current market conditions and estimated selling costs 75% - 80% (79%) Total $ 72 1 The weighted average of unobservable inputs is calculated based on the relative asset fair values. Fair Value of Financial Instruments FASB ASC 825, Financial Instruments 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 June 30, 2021 Classified as Total Fair (Dollars in thousands) Value Level 1 Level 2 Level 3 Value Financial assets: Cash and short-term investments $ 172,445 $ 169,465 $ 2,993 $ — $ 172,458 Securities available for sale 356,886 — 356,886 — 356,886 Loans, net 1,348,293 — — 1,334,567 1,334,567 Loans held for sale 119,038 — 119,038 — 119,038 Derivatives IRLC 3,382 — 3,382 — 3,382 Interest rate swaps on loans 5,547 — 5,547 — 5,547 Bank-owned life insurance 20,440 — 20,440 — 20,440 Accrued interest receivable 7,382 7,382 — — 7,382 Financial liabilities: Demand and savings deposits 1,381,577 1,381,577 — — 1,381,577 Time deposits 449,985 — 453,308 — 453,308 Borrowings 72,965 — 76,937 — 76,937 Derivatives Cash flow hedges 1,127 — 1,127 — 1,127 Interest rate swaps on loans 5,547 — 5,547 — 5,547 Forward sales of TBA securities 43 — 43 — 43 Accrued interest payable 851 851 — — 851 Carrying Fair Value Measurements at December 31, 2020 Classified as Total Fair (Dollars in thousands) Value Level 1 Level 2 Level 3 Value Financial assets: Cash and short-term investments $ 94,342 $ 86,669 $ 7,710 $ — $ 94,379 Securities available for sale 286,389 — 286,389 — 286,389 Loans, net 1,313,250 — — 1,308,569 1,308,569 Loans held for sale 214,266 — 214,266 — 214,266 Derivatives IRLC 4,582 — 4,582 — 4,582 Interest rate swaps on loans 8,185 — 8,185 — 8,185 Bank-owned life insurance 20,205 — 20,205 — 20,205 Accrued interest receivable 8,103 8,103 — — 8,103 Financial liabilities: Demand and savings deposits 1,282,590 1,282,590 — — 1,282,590 Time deposits 469,583 — 474,154 — 474,154 Borrowings 69,864 — 71,119 — 71,119 Derivatives Cash flow hedges 1,882 — 1,882 — 1,882 Interest rate swaps on loans 8,185 — 8,185 — 8,185 Forward sales of TBA securities 47 — 47 47 Accrued interest payable 1,109 1,109 — — 1,109

Business Segments

Business Segments	6 Months Ended
Business Segments	Jun. 30, 2021
Business Segments
Business Segments	NOTE 10: Business Segments The Corporation operates in a decentralized fashion in three business segments: community banking, mortgage banking and consumer finance. Beginning with the first quarter of 2021, the community banking segment comprises C&F Bank and C&F Wealth Management. Prior to 2021, the segment comprised only C&F Bank, and prior periods have been restated to conform to the current period presentation. Revenues from community banking operations consist primarily of net interest income related to investments in loans and securities and outstanding deposits and borrowings, fees earned on deposit accounts and debit card interchange activity, and net revenues from offering wealth management services and insurance products through third-party service providers. Mortgage banking revenues consist primarily of gains on sales of loans in the secondary market, mortgage banking fee income related to loan originations, fees earned by providing mortgage loan origination functions to third-party lenders, and net interest income earned on mortgage loans held for sale. Revenues from consumer finance consist primarily of net interest income earned on purchased retail installment sales contracts. The Corporation’s revenues and expenses are comprised primarily of interest expense associated with the Corporation’s trust preferred capital notes and subordinated debt, general corporate expenses, and changes in the value of the rabbi trust assets and deferred compensation liability related to its nonqualified deferred compensation plan. The results of the Corporation, which includes funding and operating costs that are not allocated to the business segments, are included in the column labeled “Other” in the tables below. Three Months Ended June 30, 2021 Community Mortgage Consumer (Dollars in thousands) Banking Banking Finance Other Eliminations Consolidated Interest income $ 15,935 $ 1,021 $ 9,421 $ — $ (2,511) $ 23,866 Interest expense 1,456 312 2,302 588 (2,520) 2,138 Net interest income 14,479 709 7,119 (588) 9 21,728 Gain on sales of loans — 5,957 — — (10) 5,947 Other noninterest income 3,852 2,308 74 945 (26) 7,153 Net revenue 18,331 8,974 7,193 357 (27) 34,828 Provision for loan losses (200) 30 (430) — — (600) Noninterest expense 13,752 6,208 3,683 1,259 — 24,902 Income (loss) before taxes 4,779 2,736 3,940 (902) (27) 10,526 Income tax expense (benefit) 854 768 1,065 (245) (6) 2,436 Net income (loss) $ 3,925 $ 1,968 $ 2,875 $ (657) $ (21) $ 8,090 Other data: Capital expenditures $ 211 $ 3 $ 1,107 $ — $ — $ 1,321 Depreciation and amortization $ 1,034 $ 64 $ 103 $ — $ — $ 1,201 Three Months Ended June 30, 2020 Community Mortgage Consumer (Dollars in thousands) Banking Banking Finance Other Eliminations Consolidated Interest income $ 14,894 $ 1,097 $ 9,689 $ — $ (2,096) $ 23,584 Interest expense 2,718 280 2,090 338 (2,096) 3,330 Net interest income 12,176 817 7,599 (338) — 20,254 Gain on sales of loans — 4,605 — — — 4,605 Other noninterest income 3,018 2,387 80 1,738 — 7,223 Net revenue 15,194 7,809 7,679 1,400 — 32,082 Provision for loan losses 1,400 — 2,200 — — 3,600 Noninterest expense 13,982 4,511 3,236 2,063 — 23,792 Income (loss) before taxes (188) 3,298 2,243 (663) — 4,690 Income tax expense (benefit) (482) 977 605 (153) — 947 Net income (loss) $ 294 $ 2,321 $ 1,638 $ (510) $ — $ 3,743 Other data: Capital expenditures $ 1,568 $ 32 $ 305 $ — $ — $ 1,905 Depreciation and amortization $ 871 $ 73 $ 45 $ — $ — $ 989 Six Months Ended June 30, 2021 Community Mortgage Consumer (Dollars in thousands) Banking Banking Finance Other Eliminations Consolidated Interest income $ 31,111 $ 2,148 $ 18,670 $ — $ (4,987) $ 46,942 Interest expense 3,180 685 4,502 1,170 (4,999) 4,538 Net interest income 27,931 1,463 14,168 (1,170) 12 42,404 Gain on sales of loans — 13,062 — — (57) 13,005 Other noninterest income 7,820 5,032 186 1,456 (43) 14,451 Net revenue 35,751 19,557 14,354 286 (88) 69,860 Provision for loan losses (200) 60 (180) — — (320) Noninterest expense 27,804 13,195 7,131 2,072 — 50,202 Income (loss) before taxes 8,147 6,302 7,403 (1,786) (88) 19,978 Income tax expense (benefit) 1,429 1,789 2,001 (477) (19) 4,723 Net income (loss) $ 6,718 $ 4,513 $ 5,402 $ (1,309) $ (69) $ 15,255 Other data: Capital expenditures $ 350 $ 63 $ 3,031 $ — $ — $ 3,444 Depreciation and amortization $ 2,100 $ 132 $ 158 $ — $ — $ 2,390 Six Months Ended June 30, 2020 Community Mortgage Consumer (Dollars in thousands) Banking Banking Finance Other Eliminations Consolidated Interest income $ 30,809 $ 1,758 $ 19,790 $ — $ (3,995) $ 48,362 Interest expense 5,862 585 4,376 677 (3,995) 7,505 Net interest income 24,947 1,173 15,414 (677) — 40,857 Gain on sales of loans — 8,281 — — 8,281 Other noninterest income 6,303 3,998 197 (203) 10,295 Net revenue 31,250 13,452 15,611 (880) — 59,433 Provision for loan losses 2,400 — 3,850 — — 6,250 Noninterest expense 28,384 8,079 6,866 548 — 43,877 Income (loss) before taxes 466 5,373 4,895 (1,428) — 9,306 Income tax expense (benefit) (485) 1,509 1,327 (427) — 1,924 Net income (loss) $ 951 $ 3,864 $ 3,568 $ (1,001) $ — $ 7,382 Other data: Capital expenditures $ 2,320 $ 326 $ 807 $ — $ — $ 3,453 Depreciation and amortization $ 1,721 $ 145 $ 91 $ — $ — $ 1,957 Community Mortgage Consumer (Dollars in thousands) Banking Banking Finance Other Eliminations Consolidated Total assets at June 30, 2021 $ 2,023,814 $ 143,854 $ 337,774 $ 41,991 $ (378,789) $ 2,168,644 Total assets at December 31, 2020 $ 1,951,622 $ 239,417 $ 314,746 $ 43,826 $ (463,301) $ 2,086,310 During the three months ended June 30, 2020, the Corporation recorded merger related expenses of $439,000 ($347,000 after income taxes), in connection with its acquisition of Peoples, all of which was recorded as noninterest expense at the community banking segment. During the six months ended June 30, 2020, the Corporation recorded merger related expenses of $1.40 million ($1.13 million after income taxes), in connection with its acquisition of Peoples, of which $1.30 million ($1.03 million after income taxes) was allocated to the community banking segment and recorded as $998,000 of noninterest expense and a loss on disposal of equipment of $298,000 included in other noninterest income. The remainder was recorded as other noninterest expense at the holding company and included in the “Other” column above. The community 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 community 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 community 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, with a floor of 3.5 percent, and fixed rate notes that carry interest at rates ranging from 2.3 percent to 8.0 percent. The community 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. In addition to unallocated expenses recorded by the holding company, certain overhead costs are incurred by the community banking segment and are not allocated to the mortgage banking and consumer finance segments.

Commitments and Contingent Liab

Commitments and Contingent Liabilities	6 Months Ended
Commitments and Contingent Liabilities	Jun. 30, 2021
Commitments and Contingent Liabilities
Commitments and Contingent Liabilities	NOTE 11: 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 $321.72 million at June 30, 2021 and $326.98 million at December 31, 2020, which does not include IRLCs at the mortgage banking segment, which are discussed in Note 12. 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 $17.61 million at June 30, 2021 and $19.07 million at December 31, 2020. The mortgage banking segment sells substantially all of the residential mortgage loans it originates to third-party investors. As is customary in the industry, the agreements with these investors require the mortgage banking segment to extend representations and warranties with respect to program compliance, borrower misrepresentation, fraud, and early payment performance. Under the agreements, the investors are entitled to make loss claims and repurchase requests of the mortgage banking segment for loans that contain covered deficiencies. The mortgage banking segment has obtained early payment default recourse waivers for a significant portion of its business. Recourse periods for early payment default for the remaining investors 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. The mortgage banking segment 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 the mortgage banking segment by the investors, the estimate of potential losses is inherently subjective and is based on historical indemnification payments and management’s assessment of current conditions that may contribute to indemnified losses on mortgage loans that have been sold in the secondary market. For the three and six months ended June 30, 2021, the Corporation recorded $15,000 and $32,000 of provision for indemnifications, respectively, compared to $156,000 and $163,000 provision for indemnifications for the three and six months ended June 30, 2020, respectively. The allowance for indemnifications was $3.39 million at June 30, 2021 and $3.36 million at December 31, 2020.

Derivative Financial Instrument

Derivative Financial Instruments	6 Months Ended
Derivative Financial Instruments	Jun. 30, 2021
Derivative Financial Instruments
Derivative Financial Instruments	NOTE 12: 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 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 Mortgage banking At June 30, 2021, the mortgage banking segment had $143.92 million of IRLCs and $104.41 million of unpaid principal on mortgage loans held for sale for which it managed interest rate risk using best-efforts forward sales contracts for $248.33 million in mortgage loans. Also at June 30, 2021, the mortgage banking segment had $10.82 million of IRLCs and $10.16 million of unpaid principal on mortgage loans held for sale for which it managed interest rate risk using forward sales of $15.25 million of TBA securities and mandatory-delivery forward sales contracts for $4.64 million in mortgage loans. At December 31, 2020, the mortgage banking segment had $190.96 million of IRLCs and $200.88 million of unpaid principal on mortgage loans held for sale for which it managed interest rate risk using best-efforts forward sales contracts for $391.84 million in mortgage loans. Also at December 31, 2020, the mortgage banking segment had $7.67 million of IRLCs and $5.63 million of unpaid principal on mortgage loans held for sale for which it managed interest rate risk using forward sales of $8.00 million of TBA securities and mandatory-delivery forward sales contracts for $3.94 million in mortgage loans. 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 June 30, 2021 or December 31, 2020. June 30, 2021 Notional (Dollars in thousands) Amount Assets Liabilities Cash flow hedges: Interest rate swap contracts $ 25,000 $ — $ 1,127 Not designated as hedges: Customer-related interest rate swap contracts: Matched interest rate swaps with borrower 84,134 5,423 124 Matched interest rate swaps with counterparty 84,134 124 5,423 Mortgage banking contracts: IRLCs 154,744 3,382 — Forward sales of TBA securities 15,250 — 43 December 31, 2020 Notional (Dollars in thousands) Amount Assets Liabilities Cash flow hedges: Interest rate swap contracts $ 25,000 $ — $ 1,882 Not designated as hedges: Customer-related interest rate swap contracts: Matched interest rate swaps with borrower 84,753 8,185 — Matched interest rate swaps with counterparty 84,753 — 8,185 Mortgage banking contracts: IRLCs 198,632 4,582 — Forward sales of TBA securities 8,000 — 47 The Corporation is required to maintain cash collateral with dealer counterparties for interest rate swap relationships in a loss position. At June 30, 2021 and at December 31, 2020, $6.44 million and $9.92 million, respectively, of cash collateral was maintained with dealer counterparties and was included in “Other assets” in the Consolidated Balance Sheets.

Other Noninterest Expenses

Other Noninterest Expenses	6 Months Ended
Other Noninterest Expenses	Jun. 30, 2021
Other Noninterest Expenses
Other Noninterest Expenses	NOTE 13: Other Noninterest Expenses The following table presents the significant components in the Consolidated Statements of Income line “Noninterest Expenses-Other.” Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2021 2020 2021 2020 Data processing fees $ 2,825 $ 2,861 $ 5,728 $ 5,535 Mortgage banking loan processing expenses 867 780 1,761 1,264 Professional fees 737 738 1,484 1,718 Marketing and advertising expenses 459 348 804 838 Telecommunication expenses 387 409 761 781 Travel and educational expenses 203 100 357 544 Other real estate (gain)/loss and expenses, net (395) 5 (402) 8 All other noninterest expenses 1,915 2,043 3,832 3,817 Total other noninterest expenses $ 6,998 $ 7,284 $ 14,325 $ 14,505 The table above includes merger related expenses for the three months ended June 30, 2020 of $308,000, of which $263,000 was included in data processing fees, $22,000 was included in professional fees, and $23,000 was included in all other noninterest expenses and includes merger related expenses for the six months ended June 30, 2020 of $898,000, of which $501,000 was included in data processing fees, $336,000 was included in professional fees, and $61,000 was included in all other noninterest expenses. There were no merger related expenses during the three and six months ended June 30, 2021.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	6 Months Ended
Summary of Significant Accounting Policies (Policies)	Jun. 30, 2021
Summary of Significant Accounting Policies
Principles of Consolidation	Principles of Consolidation: The unaudited consolidated financial statements include the accounts of C&F Financial Corporation (the Corporation), its direct wholly-owned subsidiary, Citizens and Farmers Bank (the Bank or C&F Bank) and indirect subsidiaries that are wholly-owned or controlled. Subsidiaries that are less than wholly owned are fully consolidated if they are controlled by the Corporation or one of its subsidiaries, and the portion of any subsidiary not owned by the Corporation is reported as noncontrolling interest. 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 the Corporation conform to U.S. GAAP and to predominant practices within the banking industry.
Nature of Operations	Nature of Operations: 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, originates and sells residential mortgages, provides mortgage loan origination services to third-party lenders 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. and CVB Title Services, Inc. were organized for the primary purpose of owning equity interests in an independent insurance agency and a full service title and settlement agency, respectively. Business segment data is presented in Note 10.
Basis of Presentation	Basis of Presentation: The COVID-19 pandemic has caused a significant disruption in economic activity worldwide, including in market areas served by the Corporation. Estimates for the allowance for loan losses at June 30, 2021 include probable losses related to the pandemic. While there have been signals of economic recovery and a resumption of many types of business activity, there remains significant uncertainty involved in the measurement of these losses. If economic conditions deteriorate further, then additional provision for loan losses may be required in future periods. It is unknown how long these conditions will last and what the ultimate financial impact will be to the Corporation.
Reclassification	Reclassification:
Business Combination	Business Combination:
Derivative Financial Instruments	Derivative Financial Instruments:
Income Taxes	Income Taxes:
Share-Based Compensation	Share-Based Compensation: A summary of activity for restricted stock awards during the first six months of 2021 and 2020 is presented below: 2021 Weighted- Average Grant Date Shares Fair Value Unvested, December 31, 2020 155,945 $ 48.52 Granted 20,262 44.03 Vested (20,395) 43.89 Forfeited (3,190) 45.44 Unvested, June 30, 2021 152,622 48.60 2020 Weighted- Average Grant Date Shares Fair Value Unvested, December 31, 2019 142,020 $ 48.88 Granted 14,650 53.22 Vested (16,230) 39.97 Forfeited (2,735) 5.89 Unvested, June 30, 2020 137,705 50.33
Recent Significant Accounting Pronouncements	Recent Significant Accounting Pronouncements: In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-13, “ Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments Financial Instruments – Credit Losses (Topic 326): Targeted Transition Relief Financial Instruments—Credit losses (Topic 326), Derivatives and hedging (Topic 815), and Leases (Topic 842)—Effective dates, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Financial Instruments-Credit Losses (Topic 326) and Leases (Topic 842) Codification Improvements to Financial Instruments 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, and is continuing to develop and refine an approach to estimating the allowance for credit losses. 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 total 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. 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)	6 Months Ended
Summary of Significant Accounting Policies (Tables)	Jun. 30, 2021
Summary of Significant Accounting Policies
Summary of activity for restricted stock awards	2021 Weighted- Average Grant Date Shares Fair Value Unvested, December 31, 2020 155,945 $ 48.52 Granted 20,262 44.03 Vested (20,395) 43.89 Forfeited (3,190) 45.44 Unvested, June 30, 2021 152,622 48.60 2020 Weighted- Average Grant Date Shares Fair Value Unvested, December 31, 2019 142,020 $ 48.88 Granted 14,650 53.22 Vested (16,230) 39.97 Forfeited (2,735) 5.89 Unvested, June 30, 2020 137,705 50.33

Business Combination (Tables)

Business Combination (Tables)	6 Months Ended
Business Combination (Tables)	Jun. 30, 2021
Schedule of acquired loans	June 30, 2021 December 31, 2020 Acquired Loans - Acquired Loans - Acquired Loans - Acquired Loans - Purchased Purchased Acquired Loans - Purchased Purchased Acquired Loans - (Dollars in thousands) Credit Impaired Performing Total Credit Impaired Performing Total Outstanding principal balance $ 10,632 $ 68,873 $ 79,505 $ 12,760 $ 89,043 $ 101,803 Carrying amount Real estate – residential mortgage $ 804 $ 12,432 $ 13,236 $ 1,473 $ 15,117 $ 16,590 Real estate – construction — 1,078 1,078 — 1,077 1,077 Commercial, financial and agricultural 1 4,490 44,589 49,079 4,758 58,796 63,554 Equity lines 35 7,965 8,000 80 10,182 10,262 Consumer 41 1,465 1,506 48 1,924 1,972 Total acquired loans $ 5,370 $ 67,529 $ 72,899 $ 6,359 $ 87,096 $ 93,455 1 Includes acquired loans classified by the Corporation as commercial real estate lending and commercial business lending.
Peoples Bankshares, Incorporated (Peoples)
Schedule of total consideration paid, the fair values of assets acquired and liabilities assumed, and the resulting goodwill	Amounts Recognized as of (Dollars in thousands) January 1, 2020 Purchase price: Cash paid $ 10,579 Common stock issued 11,612 Total purchase price $ 22,191 Identifiable assets acquired: Cash and cash equivalents $ 29,680 Securities available for sale 17,169 Loans 124,195 Accrued interest receivable 430 Corporate premises and equipment 3,105 Other real estate owned 281 Core deposit intangible asset 1,711 Bank-owned life insurance 3,591 Investment in small business investment company 1,493 Other receivables 5,234 Other assets 3,658 Total identifiable assets acquired 190,547 Identifiable liabilities assumed: Demand and savings deposits 94,798 Time deposits 77,018 Borrowings 4,245 Accrued interest payable 260 Salaries, benefits and deferred compensation 2,054 Other liabilities 747 Total identifiable liabilities assumed 179,122 Net identifiable assets acquired $ 11,425 Goodwill resulting from acquisition $ 10,766
Schedule of acquired loans	(Dollars in thousands) January 1, 2020 Contractual principal and interest due $ 20,310 Nonaccretable difference (7,679) Expected cash flows 12,631 Accretable yield (3,372) Purchased credit impaired loans - estimated fair value $ 9,259

Securities (Tables)

Securities (Tables)	6 Months Ended
Securities (Tables)	Jun. 30, 2021
Securities
Summary of available for sale debt securities	June 30, 2021 Gross Gross Amortized Unrealized Unrealized (Dollars in thousands) Cost Gains Losses Fair Value U.S. government agencies and corporations $ 61,401 $ 92 $ (595) $ 60,898 Mortgage-backed securities 178,174 2,415 (367) 180,222 Obligations of states and political subdivisions 98,385 2,078 (179) 100,284 Corporate and other debt securities 15,381 140 (39) 15,482 $ 353,341 $ 4,725 $ (1,180) $ 356,886 December 31, 2020 Gross Gross Amortized Unrealized Unrealized (Dollars in thousands) Cost Gains Losses Fair Value U.S. government agencies and corporations $ 48,171 $ 121 $ (10) $ 48,282 Mortgage-backed securities 120,664 3,165 (115) 123,714 Obligations of states and political subdivisions 100,405 2,436 (36) 102,805 Corporate and other debt securities 11,584 47 (43) 11,588 $ 280,824 $ 5,769 $ (204) $ 286,389
Schedule of amortized cost and estimated fair value of securities, by the earlier of contractual maturity or expected maturity	June 30, 2021 Amortized (Dollars in thousands) Cost Fair Value Due in one year or less $ 63,814 $ 63,773 Due after one year through five years 184,816 188,212 Due after five years through ten years 95,707 96,001 Due after ten years 9,004 8,900 $ 353,341 $ 356,886
Schedule of gross realized gains and losses and the proceeds	Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2021 2020 2021 2020 Realized gains from sales, maturities and calls of securities: Gross realized gains $ 6 $ 3 $ 38 $ 7 Gross realized losses — — — — Net realized gains $ 6 $ 3 $ 38 $ 7 Proceeds from sales, maturities, calls and paydowns of securities $ 21,784 $ 31,717 $ 55,496 $ 70,780
Schedule of securities in an unrealized loss position	Securities in an unrealized loss position at June 30, 2021, 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 $ 41,265 $ 551 $ 1,455 $ 44 $ 42,720 $ 595 Mortgage-backed securities 78,791 367 — — 78,791 367 Obligations of states and political subdivisions 14,139 179 — — 14,139 179 Corporate and other debt securities 7,766 39 — — 7,766 39 Total temporarily impaired securities $ 141,961 $ 1,136 $ 1,455 $ 44 $ 143,416 $ 1,180 Securities in an unrealized loss position at December 31, 2020, 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 $ 12,719 $ 10 $ — $ — $ 12,719 $ 10 Mortgage-backed securities 15,691 115 — — 15,691 115 Obligations of states and political subdivisions 5,110 36 — — 5,110 36 Corporate and other debt securities 4,271 43 — — 4,271 43 Total temporarily impaired securities $ 37,791 $ 204 $ — $ — $ 37,791 $ 204

Loans (Tables)

Loans (Tables)	6 Months Ended
Loans (Tables)	Jun. 30, 2021
Loans
Summary of major classifications of loans	June 30, December 31, (Dollars in thousands) 2021 2020 Real estate – residential mortgage $ 218,189 $ 218,298 Real estate – construction 1 53,921 62,147 Commercial, financial and agricultural 2 730,177 700,215 Equity lines 43,782 48,466 Consumer 8,302 11,028 Consumer finance 332,873 312,252 1,387,244 1,352,406 Less allowance for loan losses (38,951) (39,156) Loans, net $ 1,348,293 $ 1,313,250 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 (which includes loans originated under the Paycheck Protection Program).
Schedule of acquired loans	June 30, 2021 December 31, 2020 Acquired Loans - Acquired Loans - Acquired Loans - Acquired Loans - Purchased Purchased Acquired Loans - Purchased Purchased Acquired Loans - (Dollars in thousands) Credit Impaired Performing Total Credit Impaired Performing Total Outstanding principal balance $ 10,632 $ 68,873 $ 79,505 $ 12,760 $ 89,043 $ 101,803 Carrying amount Real estate – residential mortgage $ 804 $ 12,432 $ 13,236 $ 1,473 $ 15,117 $ 16,590 Real estate – construction — 1,078 1,078 — 1,077 1,077 Commercial, financial and agricultural 1 4,490 44,589 49,079 4,758 58,796 63,554 Equity lines 35 7,965 8,000 80 10,182 10,262 Consumer 41 1,465 1,506 48 1,924 1,972 Total acquired loans $ 5,370 $ 67,529 $ 72,899 $ 6,359 $ 87,096 $ 93,455 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)	Six Months Ended June 30, (Dollars in thousands) 2021 2020 Accretable yield, balance at beginning of period $ 4,048 $ 4,721 Acquisition of Peoples — 3,372 Accretion (1,537) (1,687) Reclassification of nonaccretable difference due to improvement in expected cash flows 743 923 Other changes, net 84 115 Accretable yield, balance at end of period $ 3,338 $ 7,444
Schedule of loans on nonaccrual status	June 30, December 31, (Dollars in thousands) 2021 2020 Real estate – residential mortgage $ 271 $ 276 Commercial, financial and agricultural: Commercial business lending 2,349 2,428 Equity lines 187 191 Consumer 106 107 Consumer finance 138 402 Total loans on nonaccrual status $ 3,051 $ 3,404
Schedule of past due status of loans	The past due status of loans as of June 30, 2021 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 $ 560 $ 307 $ 145 $ 1,012 $ 804 $ 216,373 $ 218,189 $ — Real estate – construction: Construction lending — — — — — 38,729 38,729 — Consumer lot lending — — — — — 15,192 15,192 — Commercial, financial and agricultural: Commercial real estate lending 48 — — 48 4,490 477,676 482,214 — Land acquisition and development lending — — — — — 31,671 31,671 — Builder line lending — — — — — 28,233 28,233 — Commercial business lending — — — — — 188,059 188,059 — Equity lines — 72 — 72 35 43,675 43,782 — Consumer — — — — 41 8,261 8,302 — Consumer finance 5,064 694 138 5,896 — 326,977 332,873 — Total $ 5,672 $ 1,073 $ 283 $ 7,028 $ 5,370 $ 1,374,846 $ 1,387,244 $ — 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 $2.77 million and 90+ days past due of $283,000. The past due status of loans as of December 31, 2020 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 $ 1,100 $ 154 $ 176 $ 1,430 $ 1,473 $ 215,395 $ 218,298 $ 145 Real estate – construction: Construction lending — — — — — 49,659 49,659 — Consumer lot lending — — — — — 12,488 12,488 — Commercial, financial and agricultural: Commercial real estate lending — — — — 4,758 437,145 441,903 — Land acquisition and development lending — — — — — 37,724 37,724 — Builder line lending — — — — — 18,194 18,194 — Commercial business lending 24 — — 24 — 202,370 202,394 — Equity lines 52 — — 52 80 48,334 48,466 — Consumer 2 — — 2 48 10,978 11,028 — Consumer finance 8,249 967 402 9,618 — 302,634 312,252 — Total $ 9,427 $ 1,121 $ 578 $ 11,126 $ 6,359 $ 1,334,921 $ 1,352,406 $ 145 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 $2.86 million, 30-59 days past due of $115,000 and 90+ days past due of $433,000.
Schedule of impaired loans	Impaired loans, which included TDRs of $2.90 million, and the related allowance at June 30, 2021 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 $ 1,651 $ 558 $ 982 $ 62 $ 1,661 $ 35 Commercial, financial and agricultural: Commercial real estate lending 1,393 — 1,395 92 1,395 35 Commercial business lending 2,402 — 2,349 572 2,375 — Equity lines 119 109 — — 116 1 Consumer 119 — 102 101 104 — Total $ 5,684 $ 667 $ 4,828 $ 827 $ 5,651 $ 71 Impaired loans, which included TDRs of $3.58 million, and the related allowance at December 31, 2020 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 $ 2,326 $ 931 $ 1,279 $ 77 $ 2,353 $ 105 Commercial, financial and agricultural: Commercial real estate lending 1,397 — 1,397 89 1,404 73 Commercial business lending 2,430 — 2,428 585 2,573 — Equity lines 120 111 — — 119 2 Consumer 147 — 132 128 154 3 Total $ 6,420 $ 1,042 $ 5,236 $ 879 $ 6,603 $ 183

Allowance for Loan Losses (Tabl

Allowance for Loan Losses (Tables)	6 Months Ended
Allowance for Loan Losses (Tables)	Jun. 30, 2021
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 six months ended June 30, 2021: 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, 2020 $ 2,914 $ 975 $ 10,696 $ 687 $ 371 $ 23,513 $ 39,156 Provision (credited) charged to operations (113) (182) 331 (88) (88) (180) (320) Loans charged off — — — — (81) (2,442) (2,523) Recoveries of loans previously charged off 13 — 1 1 65 2,558 2,638 Balance at June 30, 2021 $ 2,814 $ 793 $ 11,028 $ 600 $ 267 $ 23,449 $ 38,951 The following table presents the changes in the allowance for loan losses by major classification during the six months ended June 30, 2020: 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, 2019 $ 2,080 $ 681 $ 7,121 $ 733 $ 465 $ 21,793 $ 32,873 Provision charged to operations 285 302 1,724 56 33 3,850 6,250 Loans charged off (4) — (18) — (133) (5,422) (5,577) Recoveries of loans previously charged off 64 — 2 — 105 2,377 2,548 Balance at June 30, 2020 $ 2,425 $ 983 $ 8,829 $ 789 $ 470 $ 22,598 $ 36,094
Schedule of balance of the allowance for loan losses and the allowance by impairment methodology	The following table presents, as of June 30, 2021, 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 $ 62 $ — $ 664 $ — $ 101 $ — $ 827 Collectively evaluated for impairment 2,752 793 10,364 600 166 23,449 38,124 Acquired loans - PCI — — — — — — — Total allowance $ 2,814 $ 793 $ 11,028 $ 600 $ 267 $ 23,449 $ 38,951 Loans: Individually evaluated for impairment $ 1,540 $ — $ 3,744 $ 109 $ 102 $ — $ 5,495 Collectively evaluated for impairment 215,845 53,921 721,943 43,638 8,159 332,873 1,376,379 Acquired loans - PCI 804 — 4,490 35 41 — 5,370 Total loans $ 218,189 $ 53,921 $ 730,177 $ 43,782 $ 8,302 $ 332,873 $ 1,387,244 The following table presents, as of December 31, 2020, 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 $ 77 $ — $ 674 $ — $ 128 $ — $ 879 Collectively evaluated for impairment 2,837 975 10,022 687 243 23,513 38,277 Acquired loans - PCI — — — — — — — Total allowance $ 2,914 $ 975 $ 10,696 $ 687 $ 371 $ 23,513 $ 39,156 Loans: Individually evaluated for impairment $ 2,210 $ — $ 3,825 $ 111 $ 132 $ — $ 6,278 Collectively evaluated for impairment 214,615 62,147 691,632 48,275 10,848 312,252 1,339,769 Acquired loans - PCI 1,473 — 4,758 80 48 — 6,359 Total loans $ 218,298 $ 62,147 $ 700,215 $ 48,466 $ 11,028 $ 312,252 $ 1,352,406
Schedule of loans by credit quality indicators	Loans by credit quality indicators as of June 30, 2021 were as follows: Special Substandard (Dollars in thousands) Pass Mention Substandard Nonaccrual Total 1 Real estate – residential mortgage $ 216,599 $ 864 $ 455 $ 271 $ 218,189 Real estate – construction: Construction lending 38,729 — — — 38,729 Consumer lot lending 15,192 — — — 15,192 Commercial, financial and agricultural: Commercial real estate lending 459,231 15,487 7,496 — 482,214 Land acquisition and development lending 31,671 — — — 31,671 Builder line lending 28,233 — — — 28,233 Commercial business lending 184,404 1,306 — 2,349 188,059 Equity lines 43,418 176 1 187 43,782 Consumer 8,155 41 — 106 8,302 $ 1,025,632 $ 17,874 $ 7,952 $ 2,913 $ 1,054,371 1 At June 30, 2021, the Corporation did not have any loans classified as Doubtful or Loss. Non- (Dollars in thousands) Performing Performing Total Consumer finance $ 332,735 $ 138 $ 332,873 Loans by credit quality indicators as of December 31, 2020 were as follows: Special Substandard (Dollars in thousands) Pass Mention Substandard Nonaccrual Total 1 Real estate – residential mortgage $ 215,712 $ 1,715 $ 595 $ 276 $ 218,298 Real estate – construction: Construction lending 49,659 — — — 49,659 Consumer lot lending 12,488 — — — 12,488 Commercial, financial and agricultural: Commercial real estate lending 415,506 15,507 10,890 — 441,903 Land acquisition and development lending 37,724 — — — 37,724 Builder line lending 18,194 — — — 18,194 Commercial business lending 196,743 3,124 99 2,428 202,394 Equity lines 48,140 132 3 191 48,466 Consumer 10,832 48 41 107 11,028 $ 1,004,998 $ 20,526 $ 11,628 $ 3,002 $ 1,040,154 1 At December 31, 2020, the Corporation did not have any loans classified as Doubtful or Loss. Non- (Dollars in thousands) Performing Performing Total Consumer finance $ 311,850 $ 402 $ 312,252

Goodwill and Other Intangible_2

Goodwill and Other Intangible Assets (Tables)	6 Months Ended
Goodwill and Other Intangible Assets (Tables)	Jun. 30, 2021
Goodwill and Other Intangible Assets
Schedule of changes in goodwill	Community Consumer (Dollars in thousands) Banking Finance Total Balance as of January 1, 2020 $ 3,702 $ 10,723 $ 14,425 Acquisition of Peoples Bankshares, Incorporated 10,766 — 10,766 Balance at June 30, 2020 $ 14,468 $ 10,723 $ 25,191
Schedule of gross carrying amounts and accumulated amortization of other intangible assets	June 30, December 31, 2021 2020 Gross Gross Carrying Accumulated Carrying Accumulated (Dollars in thousands) Amount Amortization Amount Amortization Amortizable intangible assets: Core deposit intangibles $ 1,711 $ (248) $ 1,711 $ (171) Other amortizable intangibles 1,405 (734) 1,405 (654) Total $ 3,116 $ (982) $ 3,116 $ (825)

Equity, Other Comprehensive I_2

Equity, Other Comprehensive Income and Earnings Per Share (Tables)	6 Months Ended
	Jun. 30, 2021
Equity, Other Comprehensive Income and Earnings Per Share
Schedule of the components of accumulated other comprehensive loss, net of deferred taxes	June 30, December 31, (Dollars in thousands) 2021 2020 Net unrealized gains on securities $ 2,801 $ 4,397 Net unrecognized losses on cash flow hedges (809) (1,367) Net unrecognized losses on defined benefit plan (4,916) (4,985) Total accumulated other comprehensive loss, net $ (2,924) $ (1,955)
Schedule of components earnings per share calculations	Three Months Ended June 30, (Dollars in thousands) 2021 2020 Net income attributable to C&F Financial Corporation $ 8,008 $ 3,746 Weighted average shares outstanding — 3,653,568 3,647,707 Six Months Ended June 30, (Dollars in thousands) 2021 2020 Net income attributable to C&F Financial Corporation $ 15,069 $ 7,324 Weighted average shares outstanding — 3,664,752 3,646,161

Employee Benefit Plans (Tables)

Employee Benefit Plans (Tables)	6 Months Ended
Employee Benefit Plans (Tables)	Jun. 30, 2021
Employee Benefit Plans
Schedule of net periodic benefit costs	Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2021 2020 2021 2020 Components of net periodic benefit cost: Service cost, included in salaries and employee benefits $ 498 $ 415 $ 985 $ 801 Other components of net periodic benefit cost: Interest cost 113 140 229 275 Expected return on plan assets (427) (371) (867) (745) Amortization of prior service credit (17) (17) (34) (34) Amortization of net obligation at transition — — — — Recognized net actuarial losses 61 57 121 99 Other components of net periodic benefit cost, included in other noninterest income (270) (191) (551) (405) Net periodic benefit cost $ 228 $ 224 $ 434 $ 396

Fair Value of Assets and Liab_2

Fair Value of Assets and Liabilities (Tables)	6 Months Ended
Fair Value of Assets and Liabilities (Tables)	Jun. 30, 2021
Fair Value of Assets and Liabilities
Schedule of balances of financial assets and liabilities measured at fair value on a recurring basis	June 30, 2021 Fair Value Measurements Classified as 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 $ — $ 60,898 $ — $ 60,898 Mortgage-backed securities — 180,222 — 180,222 Obligations of states and political subdivisions — 100,284 — 100,284 Corporate and other debt securities — 15,482 — 15,482 Total securities available for sale — 356,886 — 356,886 Loans held for sale — 119,038 — 119,038 Derivatives IRLC — 3,382 — 3,382 Interest rate swaps on loans — 5,547 — 5,547 Total assets $ — $ 484,853 $ — $ 484,853 Liabilities: Derivatives Interest rate swaps on loans $ — $ 5,547 $ — $ 5,547 Cash flow hedges — 1,127 — 1,127 Forward sales of TBA securities — 43 — 43 Total liabilities $ — $ 6,717 $ — $ 6,717 December 31, 2020 Fair Value Measurements Classified as 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 $ — $ 48,282 $ — $ 48,282 Mortgage-backed securities — 123,714 — 123,714 Obligations of states and political subdivisions — 102,805 — 102,805 Corporate and other debt securities — 11,588 — 11,588 Total securities available for sale — 286,389 — 286,389 Loans held for sale — 214,266 — 214,266 Derivatives IRLC — 4,582 — 4,582 Interest rate swaps on loans — 8,185 — 8,185 Total assets $ — $ 513,422 $ — $ 513,422 Liabilities: Derivatives Interest rate swaps on loans $ — $ 8,185 $ — $ 8,185 Cash flow hedges — 1,882 — 1,882 Forward sales of TBA securities — 47 — 47 Total liabilities $ — $ 10,114 $ — $ 10,114
Schedule of balances of assets measured at fair value on a nonrecurring basis	June 30, 2021 Fair Value Measurements Classified as Assets at Fair (Dollars in thousands) Level 1 Level 2 Level 3 Value Other real estate owned, net $ — $ — $ 22 $ 22 Total $ — $ — $ 22 $ 22 December 31, 2020 Fair Value Measurements Classified as Assets at Fair (Dollars in thousands) Level 1 Level 2 Level 3 Value Other real estate owned, net $ — $ — $ 72 $ 72 Total $ — $ — $ 72 $ 72
Schedule of quantitative information about Level 3 fair value measurements for financial assets measured at fair value on a nonrecurring basis	Fair Value Measurements (Dollars in thousands) Fair Value Valuation Technique(s) Unobservable Inputs Range (Weighted Average) 1 At June 30, 2021: Other real estate owned, net $ 22 Appraisals Discount to reflect current market conditions and estimated selling costs 75% ( 75% ) Total $ 22 At December 31, 2020: Other real estate owned, net $ 72 Appraisals Discount to reflect current market conditions and estimated selling costs 75% - 80% (79%) Total $ 72 1 The weighted average of unobservable inputs is calculated based on the relative asset fair values.
Schedule of carrying amounts and estimated fair values of financial instruments	Carrying Fair Value Measurements at June 30, 2021 Classified as Total Fair (Dollars in thousands) Value Level 1 Level 2 Level 3 Value Financial assets: Cash and short-term investments $ 172,445 $ 169,465 $ 2,993 $ — $ 172,458 Securities available for sale 356,886 — 356,886 — 356,886 Loans, net 1,348,293 — — 1,334,567 1,334,567 Loans held for sale 119,038 — 119,038 — 119,038 Derivatives IRLC 3,382 — 3,382 — 3,382 Interest rate swaps on loans 5,547 — 5,547 — 5,547 Bank-owned life insurance 20,440 — 20,440 — 20,440 Accrued interest receivable 7,382 7,382 — — 7,382 Financial liabilities: Demand and savings deposits 1,381,577 1,381,577 — — 1,381,577 Time deposits 449,985 — 453,308 — 453,308 Borrowings 72,965 — 76,937 — 76,937 Derivatives Cash flow hedges 1,127 — 1,127 — 1,127 Interest rate swaps on loans 5,547 — 5,547 — 5,547 Forward sales of TBA securities 43 — 43 — 43 Accrued interest payable 851 851 — — 851 Carrying Fair Value Measurements at December 31, 2020 Classified as Total Fair (Dollars in thousands) Value Level 1 Level 2 Level 3 Value Financial assets: Cash and short-term investments $ 94,342 $ 86,669 $ 7,710 $ — $ 94,379 Securities available for sale 286,389 — 286,389 — 286,389 Loans, net 1,313,250 — — 1,308,569 1,308,569 Loans held for sale 214,266 — 214,266 — 214,266 Derivatives IRLC 4,582 — 4,582 — 4,582 Interest rate swaps on loans 8,185 — 8,185 — 8,185 Bank-owned life insurance 20,205 — 20,205 — 20,205 Accrued interest receivable 8,103 8,103 — — 8,103 Financial liabilities: Demand and savings deposits 1,282,590 1,282,590 — — 1,282,590 Time deposits 469,583 — 474,154 — 474,154 Borrowings 69,864 — 71,119 — 71,119 Derivatives Cash flow hedges 1,882 — 1,882 — 1,882 Interest rate swaps on loans 8,185 — 8,185 — 8,185 Forward sales of TBA securities 47 — 47 47 Accrued interest payable 1,109 1,109 — — 1,109

Business Segments (Tables)

Business Segments (Tables)	6 Months Ended
Business Segments (Tables)	Jun. 30, 2021
Business Segments
Schedule of segment reporting information, by segment	Three Months Ended June 30, 2021 Community Mortgage Consumer (Dollars in thousands) Banking Banking Finance Other Eliminations Consolidated Interest income $ 15,935 $ 1,021 $ 9,421 $ — $ (2,511) $ 23,866 Interest expense 1,456 312 2,302 588 (2,520) 2,138 Net interest income 14,479 709 7,119 (588) 9 21,728 Gain on sales of loans — 5,957 — — (10) 5,947 Other noninterest income 3,852 2,308 74 945 (26) 7,153 Net revenue 18,331 8,974 7,193 357 (27) 34,828 Provision for loan losses (200) 30 (430) — — (600) Noninterest expense 13,752 6,208 3,683 1,259 — 24,902 Income (loss) before taxes 4,779 2,736 3,940 (902) (27) 10,526 Income tax expense (benefit) 854 768 1,065 (245) (6) 2,436 Net income (loss) $ 3,925 $ 1,968 $ 2,875 $ (657) $ (21) $ 8,090 Other data: Capital expenditures $ 211 $ 3 $ 1,107 $ — $ — $ 1,321 Depreciation and amortization $ 1,034 $ 64 $ 103 $ — $ — $ 1,201 Three Months Ended June 30, 2020 Community Mortgage Consumer (Dollars in thousands) Banking Banking Finance Other Eliminations Consolidated Interest income $ 14,894 $ 1,097 $ 9,689 $ — $ (2,096) $ 23,584 Interest expense 2,718 280 2,090 338 (2,096) 3,330 Net interest income 12,176 817 7,599 (338) — 20,254 Gain on sales of loans — 4,605 — — — 4,605 Other noninterest income 3,018 2,387 80 1,738 — 7,223 Net revenue 15,194 7,809 7,679 1,400 — 32,082 Provision for loan losses 1,400 — 2,200 — — 3,600 Noninterest expense 13,982 4,511 3,236 2,063 — 23,792 Income (loss) before taxes (188) 3,298 2,243 (663) — 4,690 Income tax expense (benefit) (482) 977 605 (153) — 947 Net income (loss) $ 294 $ 2,321 $ 1,638 $ (510) $ — $ 3,743 Other data: Capital expenditures $ 1,568 $ 32 $ 305 $ — $ — $ 1,905 Depreciation and amortization $ 871 $ 73 $ 45 $ — $ — $ 989 Six Months Ended June 30, 2021 Community Mortgage Consumer (Dollars in thousands) Banking Banking Finance Other Eliminations Consolidated Interest income $ 31,111 $ 2,148 $ 18,670 $ — $ (4,987) $ 46,942 Interest expense 3,180 685 4,502 1,170 (4,999) 4,538 Net interest income 27,931 1,463 14,168 (1,170) 12 42,404 Gain on sales of loans — 13,062 — — (57) 13,005 Other noninterest income 7,820 5,032 186 1,456 (43) 14,451 Net revenue 35,751 19,557 14,354 286 (88) 69,860 Provision for loan losses (200) 60 (180) — — (320) Noninterest expense 27,804 13,195 7,131 2,072 — 50,202 Income (loss) before taxes 8,147 6,302 7,403 (1,786) (88) 19,978 Income tax expense (benefit) 1,429 1,789 2,001 (477) (19) 4,723 Net income (loss) $ 6,718 $ 4,513 $ 5,402 $ (1,309) $ (69) $ 15,255 Other data: Capital expenditures $ 350 $ 63 $ 3,031 $ — $ — $ 3,444 Depreciation and amortization $ 2,100 $ 132 $ 158 $ — $ — $ 2,390 Six Months Ended June 30, 2020 Community Mortgage Consumer (Dollars in thousands) Banking Banking Finance Other Eliminations Consolidated Interest income $ 30,809 $ 1,758 $ 19,790 $ — $ (3,995) $ 48,362 Interest expense 5,862 585 4,376 677 (3,995) 7,505 Net interest income 24,947 1,173 15,414 (677) — 40,857 Gain on sales of loans — 8,281 — — 8,281 Other noninterest income 6,303 3,998 197 (203) 10,295 Net revenue 31,250 13,452 15,611 (880) — 59,433 Provision for loan losses 2,400 — 3,850 — — 6,250 Noninterest expense 28,384 8,079 6,866 548 — 43,877 Income (loss) before taxes 466 5,373 4,895 (1,428) — 9,306 Income tax expense (benefit) (485) 1,509 1,327 (427) — 1,924 Net income (loss) $ 951 $ 3,864 $ 3,568 $ (1,001) $ — $ 7,382 Other data: Capital expenditures $ 2,320 $ 326 $ 807 $ — $ — $ 3,453 Depreciation and amortization $ 1,721 $ 145 $ 91 $ — $ — $ 1,957 Community Mortgage Consumer (Dollars in thousands) Banking Banking Finance Other Eliminations Consolidated Total assets at June 30, 2021 $ 2,023,814 $ 143,854 $ 337,774 $ 41,991 $ (378,789) $ 2,168,644 Total assets at December 31, 2020 $ 1,951,622 $ 239,417 $ 314,746 $ 43,826 $ (463,301) $ 2,086,310

Derivative Financial Instrume_2

Derivative Financial Instruments (Tables)	6 Months Ended
Derivative Financial Instruments (Tables)	Jun. 30, 2021
Derivative Financial Instruments
Schedule of key elements of derivative instruments other than forward sales of mortgage loans	June 30, 2021 Notional (Dollars in thousands) Amount Assets Liabilities Cash flow hedges: Interest rate swap contracts $ 25,000 $ — $ 1,127 Not designated as hedges: Customer-related interest rate swap contracts: Matched interest rate swaps with borrower 84,134 5,423 124 Matched interest rate swaps with counterparty 84,134 124 5,423 Mortgage banking contracts: IRLCs 154,744 3,382 — Forward sales of TBA securities 15,250 — 43 December 31, 2020 Notional (Dollars in thousands) Amount Assets Liabilities Cash flow hedges: Interest rate swap contracts $ 25,000 $ — $ 1,882 Not designated as hedges: Customer-related interest rate swap contracts: Matched interest rate swaps with borrower 84,753 8,185 — Matched interest rate swaps with counterparty 84,753 — 8,185 Mortgage banking contracts: IRLCs 198,632 4,582 — Forward sales of TBA securities 8,000 — 47

Other Noninterest Expenses (Tab

Other Noninterest Expenses (Tables)	6 Months Ended
Other Noninterest Expenses (Tables)	Jun. 30, 2021
Other Noninterest Expenses
Schedule of other noninterest expense	Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2021 2020 2021 2020 Data processing fees $ 2,825 $ 2,861 $ 5,728 $ 5,535 Mortgage banking loan processing expenses 867 780 1,761 1,264 Professional fees 737 738 1,484 1,718 Marketing and advertising expenses 459 348 804 838 Telecommunication expenses 387 409 761 781 Travel and educational expenses 203 100 357 544 Other real estate (gain)/loss and expenses, net (395) 5 (402) 8 All other noninterest expenses 1,915 2,043 3,832 3,817 Total other noninterest expenses $ 6,998 $ 7,284 $ 14,325 $ 14,505

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Nature of Operations and Business Combination (Details) $ in Thousands	Jan. 01, 2020USD ($)	Jun. 30, 2021subsidiary
Peoples Bankshares, Incorporated (Peoples)
Nature of Operations
Aggregate purchase price \| $	$ 22,191
C&F Bank
Nature of Operations
Number of wholly owned subsidiaries \| subsidiary		5
C&F Mortgage \| C&F Select LLC
Nature of Operations
Interest owned (as a percent)		51.00%

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Income taxes (Details) - USD ($)	3 Months Ended	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Summary of Significant Accounting Policies
Effective income tax rate (as a percent)		23.60%	20.70%
Income tax benefits from a change in tax law	$ 303,000		$ 303,000

Summary of Significant Accoun_6

Summary of Significant Accounting Policies - Share-Based Compensation (Details) - Restricted Stock - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Share-based compensation
Compensation expense before tax	$ 428,000	$ 312,000	$ 820,000	$ 701,000
Compensation expense after tax	304,000	$ 217,000	592,000	$ 435,000
Unrecognized compensation expense	$ 3,660,000		$ 3,660,000

Summary of Significant Accoun_7

Summary of Significant Accounting Policies - Restricted Stock Activity (Details) - $ / shares	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Shares
Unvested, beginning of period (in shares)	155,945
Unvested, end of period (in shares)	152,622
Restricted Stock
Shares
Unvested, beginning of period (in shares)	155,945	142,020
Granted (in shares)	20,262	14,650
Vested (in shares)	(20,395)	(16,230)
Cancelled	(3,190)	(2,735)
Unvested, end of period (in shares)	152,622	137,705
Weighted-Average Grant Date Fair Value
Nonvested, beginning of period (in dollars per share)	$ 48.52	$ 48.88
Granted (in dollars per share)	44.03	53.22
Vested (in dollars per share)	43.89	39.97
Cancelled (in dollars per share)	45.44	5.89
Nonvested, end of period (in dollars per share)	$ 48.60	$ 50.33

Business Combination - Consider

Business Combination - Consideration (Details) - Peoples Bankshares, Incorporated (Peoples)	Jan. 01, 2020USD ($)shares
Business Combination
Shares received for each share of common stock \| shares	0.5366
Amount received for each share of common stock \| $	$ 27
Cash consideration paid \| $	$ 10,579,000
Common stock to shareholders of acquiree \| shares	209,871

Business Combination - Purchase

Business Combination - Purchase Price Allocation (Details) - USD ($) $ in Thousands	Jan. 01, 2020	Jun. 30, 2021	Dec. 31, 2020	Jun. 30, 2020	Dec. 31, 2019
Identifiable liabilities assumed:
Goodwill resulting from acquisition		$ 25,191	$ 25,191	$ 25,191	$ 14,425
Peoples Bankshares, Incorporated (Peoples)
Purchase price
Cash paid	$ 10,579
Common stock issued	11,612
Total purchase price	22,191
Identifiable assets acquired:
Cash and cash equivalents	29,680
Securities available for sale	17,169
Loans	124,195
Accrued interest receivable	430
Corporate premises and equipment	3,105
Other real estate owned	281
Core deposit intangible asset	1,711
Bank-owned life insurance	3,591
Investment in small business investment company	1,493
Other receivables	5,234
Other assets	3,658
Total identifiable assets acquired	190,547
Identifiable liabilities assumed:
Demand and savings deposits	94,798
Time deposits	77,018
Borrowings	4,245
Accrued interest payable	260
Salaries, benefits and deferred compensation	2,054
Other liabilities	747
Total identifiable liabilities assumed	179,122
Net identifiable assets acquired	11,425
Goodwill resulting from acquisition	$ 10,766
Amortization period (in years)	15 years

Business Combination - Loans, C

Business Combination - Loans, Core Deposit Intangible and Deposits (Details) - USD ($)	Jan. 01, 2020	Jun. 30, 2021	Dec. 31, 2020
Business Combination
Outstanding principal balance		$ 79,505,000	$ 101,803,000
Loans, allowance for loan losses		38,951,000	39,156,000
Maximum
Information about PCI loans acquired
Maturity of deposits	5 years
PCI Loans
Business Combination
Outstanding principal balance		$ 10,632,000	$ 12,760,000
Peoples Bankshares, Incorporated (Peoples)
Business Combination
Outstanding principal balance	$ 131,920,000
Estimated fair value of loans acquired	124,195,000
Loans, allowance for loan losses	2,870,000
Information about PCI loans acquired
Contractual principal and interest due	20,310,000
Nonaccretable difference	(7,679,000)
Expected cash flows	12,631,000
Accretable yield	(3,372,000)
Purchase credit impaired loans - estimated fair value	9,259,000
Core deposit intangible asset	$ 1,711,000
Percentage of CDI to non-maturity deposits	1.80%
Premium of deposits	$ 557,000
Amortization period	2 years
Peoples Bankshares, Incorporated (Peoples) \| Minimum
Information about PCI loans acquired
Maturity of deposits	3 months
Peoples Bankshares, Incorporated (Peoples) \| PCI Loans
Business Combination
Outstanding principal balance	$ 4,280,000
Estimated fair value of loans acquired	$ 635,000

Business Combination - Merger r

Business Combination - Merger related costs (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020	Dec. 31, 2019
Business Combination
Merger related costs	$ 0	$ 308	$ 0	$ 898	$ 2,100	$ 2,100
Merger related costs, after income taxes					$ 1,780	$ 1,780
Peoples Bankshares, Incorporated (Peoples)
Business Combination
Merger related costs		439		1,400
Merger related costs, after income taxes		$ 347		$ 1,130

Securities - Available for sale

Securities - Available for sale Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 353,341	$ 280,824
Gross Unrealized Gains	4,725	5,769
Gross Unrealized Losses	(1,180)	(204)
Fair Value	356,886	286,389
U.S. government agencies and corporations
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	61,401	48,171
Gross Unrealized Gains	92	121
Gross Unrealized Losses	(595)	(10)
Fair Value	60,898	48,282
Mortgage-backed securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	178,174	120,664
Gross Unrealized Gains	2,415	3,165
Gross Unrealized Losses	(367)	(115)
Fair Value	180,222	123,714
Obligations of states and political subdivisions
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	98,385	100,405
Gross Unrealized Gains	2,078	2,436
Gross Unrealized Losses	(179)	(36)
Fair Value	100,284	102,805
Corporate and other debt securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	15,381	11,584
Gross Unrealized Gains	140	47
Gross Unrealized Losses	(39)	(43)
Fair Value	$ 15,482	$ 11,588

Securities - Maturities and Rea

Securities - Maturities and Realized Gains and Losses (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Amortized Cost
Due in one year or less	$ 63,814		$ 63,814
Due after one year through five years	184,816		184,816
Due after five years through ten years	95,707		95,707
Due after ten years	9,004		9,004
Amortized Cost	353,341		353,341		$ 280,824
Fair Value
Due in one year or less	63,773		63,773
Due after one year through five years	188,212		188,212
Due after five years through ten years	96,001		96,001
Due after ten years	8,900		8,900
Fair Value	356,886		356,886		$ 286,389
Realized Gains and Losses
Proceeds related to sales of securities	0	$ 0	2,300	$ 5,990
Gross realized gains	6	3	38	7
Net realized gains	6	3	38	7
Proceeds from sales, maturities, calls and paydowns of securities	$ 21,784	$ 31,717	$ 55,496	$ 70,780

Securities - Pledged as Collate

Securities - Pledged as Collateral (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Available for sale securities
Amortized Cost	$ 353,341	$ 280,824
Fair Value	356,886	286,389
Securities Pledged as Collateral
Available for sale securities
Amortized Cost	150,520	146,660
Fair Value	$ 153,390	$ 150,130

Securities - Unrealized Loss Po

Securities - Unrealized Loss Positions (Details)	6 Months Ended
Securities - Unrealized Loss Positions (Details)	Jun. 30, 2021USD ($)security	Dec. 31, 2020USD ($)
Fair value
Less Than 12 Months, Fair Value	$ 141,961,000	$ 37,791,000
12 Months or More, Fair Value	1,455,000
Total Fair Value	143,416,000	37,791,000
Unrealized Loss
Less Than 12 Months, Unrealized Loss	1,136,000	204,000
12 Months or More, Unrealized Loss	44,000
Total Unrealized Loss	$ 1,180,000	204,000
Other information
Number of positions considered temporarily impaired \| security	104
Number of position significant relative to carrying value	0
Debt securities considered temporarily impaired	$ 143,416,000	37,791,000
Other than temporary impairment	0
U.S. government agencies and corporations
Fair value
Less Than 12 Months, Fair Value	41,265,000	12,719,000
12 Months or More, Fair Value	1,455,000
Total Fair Value	42,720,000	12,719,000
Unrealized Loss
Less Than 12 Months, Unrealized Loss	551,000	10,000
12 Months or More, Unrealized Loss	44,000
Total Unrealized Loss	595,000	10,000
Other information
Debt securities considered temporarily impaired	42,720,000	12,719,000
Mortgage-backed securities
Fair value
Less Than 12 Months, Fair Value	78,791,000	15,691,000
Total Fair Value	78,791,000	15,691,000
Unrealized Loss
Less Than 12 Months, Unrealized Loss	367,000	115,000
Total Unrealized Loss	367,000	115,000
Other information
Debt securities considered temporarily impaired	78,791,000	15,691,000
Obligations of states and political subdivisions
Fair value
Less Than 12 Months, Fair Value	14,139,000	5,110,000
Total Fair Value	14,139,000	5,110,000
Unrealized Loss
Less Than 12 Months, Unrealized Loss	179,000	36,000
Total Unrealized Loss	179,000	36,000
Other information
Debt securities considered temporarily impaired	14,139,000	5,110,000
Corporate and other debt securities
Fair value
Less Than 12 Months, Fair Value	7,766,000	4,271,000
Total Fair Value	7,766,000	4,271,000
Unrealized Loss
Less Than 12 Months, Unrealized Loss	39,000	43,000
Total Unrealized Loss	39,000	43,000
Other information
Debt securities considered temporarily impaired	$ 7,766,000	$ 4,271,000

Securities - Restricted Stocks

Securities - Restricted Stocks and others (Details) - USD ($)	6 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Securities
Investment in restricted stock	$ 1,030,000
Investment in restricted stocks	1,027,000	$ 1,636,000
Restricted stocks, other-than-temporary impairment	$ 0

Loans - Major Classifications o

Loans - Major Classifications of Loans (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Loans
Loans	$ 1,387,244	$ 1,352,406
Less allowance for loan losses	(38,951)	(39,156)
Loans, net	1,348,293	1,313,250
Real estate - residential mortgage
Loans
Loans	218,189	218,298
Real estate - construction
Loans
Loans	53,921	62,147
Commercial, financial and agricultural
Loans
Loans	730,177	700,215
Equity lines
Loans
Loans	43,782	48,466
Consumer
Loans
Loans	8,302	11,028
Amount included related to demand deposit overdrafts	198	284
Consumer finance
Loans
Loans	$ 332,873	$ 312,252

Loans - Loans Acquired (Details

Loans - Loans Acquired (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Loans
Outstanding principal balance	$ 79,505	$ 101,803
Carrying amount
Total acquired loans	72,899	93,455
Real estate - residential mortgage
Carrying amount
Total acquired loans	13,236	16,590
Real estate - construction
Carrying amount
Total acquired loans	1,078	1,077
Commercial, financial and agricultural
Carrying amount
Total acquired loans	49,079	63,554
Equity lines
Carrying amount
Total acquired loans	8,000	10,262
Consumer
Carrying amount
Total acquired loans	1,506	1,972
PCI Loans
Loans
Outstanding principal balance	10,632	12,760
Carrying amount
Total acquired loans	5,370	6,359
PCI Loans \| Real estate - residential mortgage
Carrying amount
Total acquired loans	804	1,473
PCI Loans \| Commercial, financial and agricultural
Carrying amount
Total acquired loans	4,490	4,758
PCI Loans \| Equity lines
Carrying amount
Total acquired loans	35	80
PCI Loans \| Consumer
Carrying amount
Total acquired loans	41	48
Purchased Performing Loans
Loans
Outstanding principal balance	68,873	89,043
Carrying amount
Total acquired loans	67,529	87,096
Purchased Performing Loans \| Real estate - residential mortgage
Carrying amount
Total acquired loans	12,432	15,117
Purchased Performing Loans \| Real estate - construction
Carrying amount
Total acquired loans	1,078	1,077
Purchased Performing Loans \| Commercial, financial and agricultural
Carrying amount
Total acquired loans	44,589	58,796
Purchased Performing Loans \| Equity lines
Carrying amount
Total acquired loans	7,965	10,182
Purchased Performing Loans \| Consumer
Carrying amount
Total acquired loans	$ 1,465	$ 1,924

Loans - Change in Accretable Yi

Loans - Change in Accretable Yield (Details) - PCI Loans - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Change in the accretable yield
Accretable yield, balance at beginning of period	$ 4,048	$ 4,721
Acquisition of Peoples		3,372
Accretion	(1,537)	(1,687)
Reclassification of nonaccreatable difference due to improvement in expected cash flows	743	923
Other changes, net	84	115
Accretable yield, balance at end of period	$ 3,338	$ 7,444

Loans - Loans on Nonaccrual Sta

Loans - Loans on Nonaccrual Status (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Loans on nonaccrual status
Loans on nonaccrual status	$ 3,051	$ 3,404
Real estate - residential mortgage
Loans on nonaccrual status
Loans on nonaccrual status	271	276
Commercial, financial and agricultural \| Commercial business lending
Loans on nonaccrual status
Loans on nonaccrual status	2,349	2,428
Equity lines
Loans on nonaccrual status
Loans on nonaccrual status	187	191
Consumer
Loans on nonaccrual status
Loans on nonaccrual status	106	107
Consumer finance
Loans on nonaccrual status
Loans on nonaccrual status	$ 138	$ 402

Loans - Past Due Status (Detail

Loans - Past Due Status (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Loans on nonaccrual status
Total Past Due	$ 7,028	$ 11,126
Current	1,374,846	1,334,921
Total Loans	1,387,244	1,352,406
90+ days past due and accruing		145
Additional disclosure for nonaccrual loans
Current, nonaccrual status	2,770	2,860
Nonaccrual loans, 30-59 days past due		115
Nonaccrual loans, 90+ days past due	283	433
PCI
Loans on nonaccrual status
PCI	5,370	6,359
30-59 Days Past Due
Loans on nonaccrual status
Total Past Due	5,672	9,427
60-89 Days Past Due
Loans on nonaccrual status
Total Past Due	1,073	1,121
90+ Days Past Due
Loans on nonaccrual status
Total Past Due	283	578
Real estate - residential mortgage
Loans on nonaccrual status
Total Past Due	1,012	1,430
Current	216,373	215,395
Total Loans	218,189	218,298
90+ days past due and accruing		145
Real estate - residential mortgage \| PCI
Loans on nonaccrual status
PCI	804	1,473
Real estate - residential mortgage \| 30-59 Days Past Due
Loans on nonaccrual status
Total Past Due	560	1,100
Real estate - residential mortgage \| 60-89 Days Past Due
Loans on nonaccrual status
Total Past Due	307	154
Real estate - residential mortgage \| 90+ Days Past Due
Loans on nonaccrual status
Total Past Due	145	176
Real estate - construction
Loans on nonaccrual status
Total Loans	53,921	62,147
Commercial, financial and agricultural
Loans on nonaccrual status
Total Loans	730,177	700,215
Equity lines
Loans on nonaccrual status
Total Past Due	72	52
Current	43,675	48,334
Total Loans	43,782	48,466
Equity lines \| PCI
Loans on nonaccrual status
PCI	35	80
Equity lines \| 30-59 Days Past Due
Loans on nonaccrual status
Total Past Due		52
Equity lines \| 60-89 Days Past Due
Loans on nonaccrual status
Total Past Due	72
Consumer
Loans on nonaccrual status
Total Past Due		2
Current	8,261	10,978
Total Loans	8,302	11,028
Consumer \| PCI
Loans on nonaccrual status
PCI	41	48
Consumer \| 30-59 Days Past Due
Loans on nonaccrual status
Total Past Due		2
Consumer finance
Loans on nonaccrual status
Total Past Due	5,896	9,618
Current	326,977	302,634
Total Loans	332,873	312,252
Consumer finance \| 30-59 Days Past Due
Loans on nonaccrual status
Total Past Due	5,064	8,249
Consumer finance \| 60-89 Days Past Due
Loans on nonaccrual status
Total Past Due	694	967
Consumer finance \| 90+ Days Past Due
Loans on nonaccrual status
Total Past Due	138	402
Construction lending \| Real estate - construction
Loans on nonaccrual status
Current	38,729	49,659
Total Loans	38,729	49,659
Consumer lot lending \| Real estate - construction
Loans on nonaccrual status
Current	15,192	12,488
Total Loans	15,192	12,488
Commercial real estate lending \| Commercial, financial and agricultural
Loans on nonaccrual status
Total Past Due	48
Current	477,676	437,145
Total Loans	482,214	441,903
Commercial real estate lending \| Commercial, financial and agricultural \| PCI
Loans on nonaccrual status
PCI	4,490	4,758
Commercial real estate lending \| Commercial, financial and agricultural \| 30-59 Days Past Due
Loans on nonaccrual status
Total Past Due	48
Land acquisition and development lending \| Commercial, financial and agricultural
Loans on nonaccrual status
Current	31,671	37,724
Total Loans	31,671	37,724
Builder line lending \| Commercial, financial and agricultural
Loans on nonaccrual status
Current	28,233	18,194
Total Loans	28,233	18,194
Commercial business lending \| Commercial, financial and agricultural
Loans on nonaccrual status
Total Past Due		24
Current	188,059	202,370
Total Loans	$ 188,059	202,394
Commercial business lending \| Commercial, financial and agricultural \| 30-59 Days Past Due
Loans on nonaccrual status
Total Past Due		$ 24

Loans - Troubled Debt Restructu

Loans - Troubled Debt Restructurings (Details)	3 Months Ended		6 Months Ended
Loans - Troubled Debt Restructurings (Details)	Jun. 30, 2021USD ($)loan	Jun. 30, 2020USD ($)loan	Jun. 30, 2021USD ($)loan	Jun. 30, 2020USD ($)loan
Loans
Number of Loans \| loan	0	0	1	1
Recorded Investment			$ 4,000	$ 84,000
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	$ 0	$ 0

Loans - Impaired Loans (Details

Loans - Impaired Loans (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
Loans - Impaired Loans (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Impaired loans
Impaired loans, troubled debt restructurings	$ 2,900	$ 3,580
Impaired loans, Unpaid Principal Balance	5,684	6,420
Impaired loans, Recorded Investment in Loans without Specific Reserve	667	1,042
Impaired loans, Recorded Investment in Loans with Specific Reserve	4,828	5,236,000
Impaired loans, Related Allowance	827	879
Impaired loans, Average Balance	5,651	6,603
Impaired loans, Interest Income Recognized	71	183
Real estate - residential mortgage
Impaired loans
Impaired loans, Unpaid Principal Balance	1,651	2,326
Impaired loans, Recorded Investment in Loans without Specific Reserve	558	931
Impaired loans, Recorded Investment in Loans with Specific Reserve	982	1,279,000
Impaired loans, Related Allowance	62	77
Impaired loans, Average Balance	1,661	2,353
Impaired loans, Interest Income Recognized	35	105
Commercial, financial and agricultural \| Commercial real estate lending
Impaired loans
Impaired loans, Unpaid Principal Balance	1,393	1,397
Impaired loans, Recorded Investment in Loans with Specific Reserve	1,395	1,397,000
Impaired loans, Related Allowance	92	89
Impaired loans, Average Balance	1,395	1,404
Impaired loans, Interest Income Recognized	35	73
Commercial, financial and agricultural \| Commercial business lending
Impaired loans
Impaired loans, Unpaid Principal Balance	2,402	2,430
Impaired loans, Recorded Investment in Loans with Specific Reserve	2,349	2,428,000
Impaired loans, Related Allowance	572	585
Impaired loans, Average Balance	2,375	2,573
Equity lines
Impaired loans
Impaired loans, Unpaid Principal Balance	119	120
Impaired loans, Recorded Investment in Loans without Specific Reserve	109	111
Impaired loans, Average Balance	116	119
Impaired loans, Interest Income Recognized	1	2
Consumer
Impaired loans
Impaired loans, Unpaid Principal Balance	119	147
Impaired loans, Recorded Investment in Loans with Specific Reserve	102	132,000
Impaired loans, Related Allowance	101	128
Impaired loans, Average Balance	$ 104	154
Impaired loans, Interest Income Recognized		$ 3

Allowance for Loan Losses - Cha

Allowance for Loan Losses - Change in Allowance for Loan Losses (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Allowance balance attributable to loans:
Balance at the beginning of period	$ 39,156	$ 32,873
Provision (credited) charged to operations	(320)	6,250
Loans charged off	(2,523)	(5,577)
Recoveries of loans previously charged off	2,638	2,548
Balance at the end of period	38,951	36,094
Real estate - residential mortgage
Allowance balance attributable to loans:
Balance at the beginning of period	2,914	2,080
Provision (credited) charged to operations	(113)	285
Loans charged off		(4)
Recoveries of loans previously charged off	13	64
Balance at the end of period	2,814	2,425
Real estate - construction
Allowance balance attributable to loans:
Balance at the beginning of period	975	681
Provision (credited) charged to operations	(182)	302
Balance at the end of period	793	983
Commercial, financial and agricultural
Allowance balance attributable to loans:
Balance at the beginning of period	10,696	7,121
Provision (credited) charged to operations	331	1,724
Loans charged off		(18)
Recoveries of loans previously charged off	1	2
Balance at the end of period	11,028	8,829
Equity lines
Allowance balance attributable to loans:
Balance at the beginning of period	687	733
Provision (credited) charged to operations	(88)	56
Recoveries of loans previously charged off	1
Balance at the end of period	600	789
Consumer
Allowance balance attributable to loans:
Balance at the beginning of period	371	465
Provision (credited) charged to operations	(88)	33
Loans charged off	(81)	(133)
Recoveries of loans previously charged off	65	105
Balance at the end of period	267	470
Consumer finance
Allowance balance attributable to loans:
Balance at the beginning of period	23,513	21,793
Provision (credited) charged to operations	(180)	3,850
Loans charged off	(2,442)	(5,422)
Recoveries of loans previously charged off	2,558	2,377
Balance at the end of period	$ 23,449	$ 22,598

Allowance for Loan Losses - All

Allowance for Loan Losses - Allowance and Loans by Impairment Methodology (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020	Jun. 30, 2020	Dec. 31, 2019
Allowance balance attributable to loans:
Individually evaluated for impairment	$ 827	$ 879
Collectively evaluated for impairment	38,124	38,277
Total allowance	38,951	39,156	$ 36,094	$ 32,873
Loans:
Individually evaluated for impairment	5,495	6,278
Collectively evaluated for impairment	1,376,379	1,339,769
Acquired loans - PCI	5,370	6,359
Total loans	1,387,244	1,352,406
Real estate - residential mortgage
Allowance balance attributable to loans:
Individually evaluated for impairment	62	77
Collectively evaluated for impairment	2,752	2,837
Total allowance	2,814	2,914	2,425	2,080
Loans:
Individually evaluated for impairment	1,540	2,210
Collectively evaluated for impairment	215,845	214,615
Acquired loans - PCI	804	1,473
Total loans	218,189	218,298
Real estate - construction
Allowance balance attributable to loans:
Collectively evaluated for impairment	793	975
Total allowance	793	975	983	681
Loans:
Collectively evaluated for impairment	53,921	62,147
Total loans	53,921	62,147
Commercial, financial and agricultural
Allowance balance attributable to loans:
Individually evaluated for impairment	664	674
Collectively evaluated for impairment	10,364	10,022
Total allowance	11,028	10,696	8,829	7,121
Loans:
Individually evaluated for impairment	3,744	3,825
Collectively evaluated for impairment	721,943	691,632
Acquired loans - PCI	4,490	4,758
Total loans	730,177	700,215
Equity lines
Allowance balance attributable to loans:
Collectively evaluated for impairment	600	687
Total allowance	600	687	789	733
Loans:
Individually evaluated for impairment	109	111
Collectively evaluated for impairment	43,638	48,275
Acquired loans - PCI	35	80
Total loans	43,782	48,466
Consumer
Allowance balance attributable to loans:
Individually evaluated for impairment	101	128
Collectively evaluated for impairment	166	243
Total allowance	267	371	470	465
Loans:
Individually evaluated for impairment	102	132
Collectively evaluated for impairment	8,159	10,848
Acquired loans - PCI	41	48
Total loans	8,302	11,028
Consumer finance
Allowance balance attributable to loans:
Collectively evaluated for impairment	23,449	23,513
Total allowance	23,449	23,513	$ 22,598	$ 21,793
Loans:
Collectively evaluated for impairment	332,873	312,252
Total loans	$ 332,873	$ 312,252

Allowance for Loan Losses - Cre

Allowance for Loan Losses - Credit Quality Indicators (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Allowance for loan losses
Loans, excluding consumer finance	$ 1,054,371	$ 1,040,154
Pass
Allowance for loan losses
Loans, excluding consumer finance	1,025,632	1,004,998
Special Mention
Allowance for loan losses
Loans, excluding consumer finance	17,874	20,526
Substandard
Allowance for loan losses
Loans, excluding consumer finance	7,952	11,628
Substandard Nonaccrual
Allowance for loan losses
Loans, excluding consumer finance	2,913	3,002
Real estate - residential mortgage
Allowance for loan losses
Loans, excluding consumer finance	218,189	218,298
Real estate - residential mortgage \| Pass
Allowance for loan losses
Loans, excluding consumer finance	216,599	215,712
Real estate - residential mortgage \| Special Mention
Allowance for loan losses
Loans, excluding consumer finance	864	1,715
Real estate - residential mortgage \| Substandard
Allowance for loan losses
Loans, excluding consumer finance	455	595
Real estate - residential mortgage \| Substandard Nonaccrual
Allowance for loan losses
Loans, excluding consumer finance	271	276
Real estate - construction \| Construction lending
Allowance for loan losses
Loans, excluding consumer finance	38,729	49,659
Real estate - construction \| Construction lending \| Pass
Allowance for loan losses
Loans, excluding consumer finance	38,729	49,659
Real estate - construction \| Consumer lot lending
Allowance for loan losses
Loans, excluding consumer finance	15,192	12,488
Real estate - construction \| Consumer lot lending \| Pass
Allowance for loan losses
Loans, excluding consumer finance	15,192	12,488
Commercial, financial and agricultural \| Commercial real estate lending
Allowance for loan losses
Loans, excluding consumer finance	482,214	441,903
Commercial, financial and agricultural \| Commercial real estate lending \| Pass
Allowance for loan losses
Loans, excluding consumer finance	459,231	415,506
Commercial, financial and agricultural \| Commercial real estate lending \| Special Mention
Allowance for loan losses
Loans, excluding consumer finance	15,487	15,507
Commercial, financial and agricultural \| Commercial real estate lending \| Substandard
Allowance for loan losses
Loans, excluding consumer finance	7,496	10,890
Commercial, financial and agricultural \| Land acquisition and development lending
Allowance for loan losses
Loans, excluding consumer finance	31,671	37,724
Commercial, financial and agricultural \| Land acquisition and development lending \| Pass
Allowance for loan losses
Loans, excluding consumer finance	31,671	37,724
Commercial, financial and agricultural \| Builder line lending
Allowance for loan losses
Loans, excluding consumer finance	28,233	18,194
Commercial, financial and agricultural \| Builder line lending \| Pass
Allowance for loan losses
Loans, excluding consumer finance	28,233	18,194
Commercial, financial and agricultural \| Commercial business lending
Allowance for loan losses
Loans, excluding consumer finance	188,059	202,394
Commercial, financial and agricultural \| Commercial business lending \| Pass
Allowance for loan losses
Loans, excluding consumer finance	184,404	196,743
Commercial, financial and agricultural \| Commercial business lending \| Special Mention
Allowance for loan losses
Loans, excluding consumer finance	1,306	3,124
Commercial, financial and agricultural \| Commercial business lending \| Substandard
Allowance for loan losses
Loans, excluding consumer finance		99
Commercial, financial and agricultural \| Commercial business lending \| Substandard Nonaccrual
Allowance for loan losses
Loans, excluding consumer finance	2,349	2,428
Equity lines
Allowance for loan losses
Loans, excluding consumer finance	43,782	48,466
Equity lines \| Pass
Allowance for loan losses
Loans, excluding consumer finance	43,418	48,140
Equity lines \| Special Mention
Allowance for loan losses
Loans, excluding consumer finance	176	132
Equity lines \| Substandard
Allowance for loan losses
Loans, excluding consumer finance	1	3
Equity lines \| Substandard Nonaccrual
Allowance for loan losses
Loans, excluding consumer finance	187	191
Consumer
Allowance for loan losses
Loans, excluding consumer finance	8,302	11,028
Consumer \| Pass
Allowance for loan losses
Loans, excluding consumer finance	8,155	10,832
Consumer \| Special Mention
Allowance for loan losses
Loans, excluding consumer finance	41	48
Consumer \| Substandard
Allowance for loan losses
Loans, excluding consumer finance		41
Consumer \| Substandard Nonaccrual
Allowance for loan losses
Loans, excluding consumer finance	$ 106	$ 107

Allowance for Loan Losses - Loa

Allowance for Loan Losses - Loans by Credit Quality Indicators - Performing and Non-Performing (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Allowance for loan losses
Loans	$ 1,387,244	$ 1,352,406
Consumer finance
Allowance for loan losses
Loans	332,873	312,252
Consumer finance \| Performing
Allowance for loan losses
Loans	332,735	311,850
Consumer finance \| Non-Performing
Allowance for loan losses
Loans	$ 138	$ 402

Goodwill and Other Intangible_3

Goodwill and Other Intangible Assets - Goodwill (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2021	Jun. 30, 2020
Goodwill and Other Intangible Assets
Goodwill	$ 25,191	$ 25,191	$ 25,191
Changes in the recorded balance of goodwill	0	0	10,766
Changes in goodwill, by reporting unit
Balance as of the beginning of the period		25,191	14,425
Acquisition of Peoples Bankshares, Incorporated	0	0	10,766
Balance at the end of the period	$ 25,191	$ 25,191	25,191
Community Banking
Goodwill and Other Intangible Assets
Goodwill			14,468
Changes in the recorded balance of goodwill			10,766
Changes in goodwill, by reporting unit
Balance as of the beginning of the period			3,702
Acquisition of Peoples Bankshares, Incorporated			10,766
Balance at the end of the period			14,468
Consumer Finance
Goodwill and Other Intangible Assets
Goodwill			10,723
Changes in goodwill, by reporting unit
Balance as of the beginning of the period			10,723
Balance at the end of the period			$ 10,723

Goodwill and Other Intangible_4

Goodwill and Other Intangible Assets - Other Intangible Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Other intangible assets
Other intangible assets, net	$ 2,134	$ 2,291
Gross carrying amounts and accumulated amortization
Gross Carrying Amount	3,116	3,116
Accumulated Amortization	(982)	(825)
Core deposit intangible
Gross carrying amounts and accumulated amortization
Gross Carrying Amount	1,711	1,711
Accumulated Amortization	(248)	(171)
Other amortizable intangibles
Gross carrying amounts and accumulated amortization
Gross Carrying Amount	1,405	1,405
Accumulated Amortization	$ (734)	$ (654)

Goodwill and Other Intangible_5

Goodwill and Other Intangible Assets - Amortization (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Goodwill and Other Intangible Assets
Amortization of intangible assets	$ 79,000	$ 83,000	$ 157,000	$ 166,000

Equity, Other Comprehensive I_3

Equity, Other Comprehensive Income and Earnings Per Share - Equity and Noncontrolling Interest (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Nov. 17, 2020
Shareholders' Equity
Number of shares withheld from employees to satisfy tax withholding obligations			7,311	5,069
C&F Select LLC
Shareholders' Equity
Issuance of noncontrolling interest			$ 490,000
The Repurchase Program
Shareholders' Equity
Number of shares authorized to be repurchased					365,000
Aggregate common stock repurchased (in shares)			97,714
Aggregate cost of common stock repurchased	$ 4,740,000		$ 4,740,000
Shares repurchased (in shares)	90,255		90,255
Cost of shares repurchased	$ 4,460,000		$ 4,460,000
Previous share repurchase program
Shareholders' Equity
Shares repurchased (in shares)		0		8,963
Cost of shares repurchased				$ 355,000

Equity, Other Comprehensive I_4

Equity, Other Comprehensive Income and Earnings Per Share - Accumulated Other Comprehensive Loss, Net (Details) - USD ($)	Jun. 30, 2021	Dec. 31, 2020
Equity, Other Comprehensive Income and Earnings Per Share
Deferred taxes included in AOCI	$ 842,000	$ 630,000
Net unrealized gains on securities	2,801,000	4,397,000
Net unrecognized losses on cash flow hedges	(809,000)	(1,367,000)
Net unrecognized losses on defined benefit plan	(4,916,000)	(4,985,000)
Total accumulated other comprehensive loss, net	$ (2,924,000)	$ (1,955,000)

Equity, Other Comprehensive I_5

Equity, Other Comprehensive Income and Earnings Per Share - Earnings Per Share (EPS) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Components of earnings per share calculations
Net income attributable to C&F Financial Corporation	$ 8,008	$ 3,746	$ 15,069	$ 7,324
Weighted average shares outstanding-basic and diluted	3,653,568	3,647,707	3,664,752	3,646,161

Employee Benefit Plans (Details

Employee Benefit Plans (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Employee Benefit Plans (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Components of net periodic benefit cost
Service cost, included in salaries and employee benefits	$ 498	$ 415	$ 985	$ 801
Other components of net periodic benefit cost:
Interest cost	113	140	229	275
Expected return on plan assets	(427)	(371)	(867)	(745)
Amortization of prior service credit	(17)	(17)	(34)	(34)
Recognized net actuarial losses	61	57	121	99
Other components of net periodic benefit cost, included in other noninterest income	(270)	(191)	(551)	(405)
Net periodic benefit cost	$ 228	$ 224	$ 434	$ 396

Fair Value of Assets and Liab_3

Fair Value of Assets and Liabilities - Investments in small business investment company funds (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Fair Value of Assets and Liabilities
Fair value of investment in small business investment companies	$ 1,370,000		$ 1,370,000		$ 1,480,000
Unrealized gains or losses	$ 2,000	$ (124,000)	$ 47,000	$ (124,000)

Fair Value of Assets and Liab_4

Fair Value of Assets and Liabilities - Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Securities available for sale
Securities available for sale	$ 356,886	$ 286,389
Interest rate swaps on loans \| Cash flow hedges
Liabilities:
Derivatives	1,127	1,882
Recurring
Securities available for sale
Securities available for sale	356,886	286,389
Loans held for sale	119,038	214,266
Total assets measured at fair value	484,853	513,422
Liabilities:
Derivatives	6,717	10,114
Recurring \| Cash flow hedges
Liabilities:
Derivatives	1,127	1,882
Recurring \| IRLC
Securities available for sale
Derivatives	3,382	4,582
Recurring \| Interest rate swaps on loans
Securities available for sale
Derivatives	5,547	8,185
Liabilities:
Derivatives	5,547	8,185
Recurring \| Forward sales of TBA securities
Liabilities:
Derivatives	43	47
Level 2 \| Recurring
Securities available for sale
Securities available for sale	356,886	286,389
Loans held for sale	119,038	214,266
Total assets measured at fair value	484,853	513,422
Liabilities:
Derivatives	6,717	10,114
Level 2 \| Recurring \| Cash flow hedges
Liabilities:
Derivatives	1,127	1,882
Level 2 \| Recurring \| IRLC
Securities available for sale
Derivatives	3,382	4,582
Level 2 \| Recurring \| Interest rate swaps on loans
Securities available for sale
Derivatives	5,547	8,185
Liabilities:
Derivatives	5,547	8,185
Level 2 \| Recurring \| Forward sales of TBA securities
Liabilities:
Derivatives	43	47
U.S. government agencies and corporations
Securities available for sale
Securities available for sale	60,898	48,282
U.S. government agencies and corporations \| Recurring
Securities available for sale
Securities available for sale	60,898	48,282
U.S. government agencies and corporations \| Level 2 \| Recurring
Securities available for sale
Securities available for sale	60,898	48,282
Mortgage-backed securities
Securities available for sale
Securities available for sale	180,222	123,714
Mortgage-backed securities \| Recurring
Securities available for sale
Securities available for sale	180,222	123,714
Mortgage-backed securities \| Level 2 \| Recurring
Securities available for sale
Securities available for sale	180,222	123,714
Obligations of states and political subdivisions
Securities available for sale
Securities available for sale	100,284	102,805
Obligations of states and political subdivisions \| Recurring
Securities available for sale
Securities available for sale	100,284	102,805
Obligations of states and political subdivisions \| Level 2 \| Recurring
Securities available for sale
Securities available for sale	100,284	102,805
Corporate and other debt securities
Securities available for sale
Securities available for sale	15,482	11,588
Corporate and other debt securities \| Recurring
Securities available for sale
Securities available for sale	15,482	11,588
Corporate and other debt securities \| Level 2 \| Recurring
Securities available for sale
Securities available for sale	$ 15,482	$ 11,588

Fair Value of Assets and Liab_5

Fair Value of Assets and Liabilities - Financial Assets Measured at Fair Value on Non-Recurring Basis (Details)	Jun. 30, 2021USD ($)	Dec. 31, 2020USD ($)
Impaired loans, net
Fair value assets and liabilities - Nonrecurring Basis
Total assets measured at fair value	$ 0	$ 0
Nonrecurring
Fair value assets and liabilities - Nonrecurring Basis
Total assets measured at fair value	22,000	72,000
Nonrecurring \| Other real estate owned, net
Fair value assets and liabilities - Nonrecurring Basis
Total assets measured at fair value	22,000	72,000
Level 3 \| Nonrecurring
Fair value assets and liabilities - Nonrecurring Basis
Total assets measured at fair value	22,000	72,000
Level 3 \| Nonrecurring \| Other real estate owned, net
Fair value assets and liabilities - Nonrecurring Basis
Total assets measured at fair value	$ 22,000	$ 72,000
Other real estate owned, net, valuation technique	cffi:ValuationTechniqueAppraisalsMember	cffi:ValuationTechniqueAppraisalsMember
Other real estate owned, net, measurement input	us-gaap:MeasurementInputDiscountRateMember	us-gaap:MeasurementInputDiscountRateMember
Level 3 \| Nonrecurring \| Other real estate owned, net \| Minimum
Fair value assets and liabilities - Nonrecurring Basis
Other real estate owned, input	0.75	0.75
Level 3 \| Nonrecurring \| Other real estate owned, net \| Maximum
Fair value assets and liabilities - Nonrecurring Basis
Other real estate owned, input	0.75	0.80
Level 3 \| Nonrecurring \| Other real estate owned, net \| Weighted Average
Fair value assets and liabilities - Nonrecurring Basis
Other real estate owned, input		0.79

Fair Value of Assets and Liab_6

Fair Value of Assets and Liabilities - Carrying Value and Estimated Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Assets:
Securities available for sale	$ 356,886	$ 286,389
Bank-owned life insurance	20,440	20,205
Carrying Value
Assets:
Cash and short-term investments	172,445	94,342
Securities available for sale	356,886	286,389
Loans, net	1,348,293	1,313,250
Loans held for sale	119,038	214,266
Bank-owned life insurance	20,440	20,205
Accrued interest receivable	7,382	8,103
Financial liabilities:
Demand and savings deposits	1,381,577	1,282,590
Time deposits	449,985	469,583
Borrowings	72,965	69,864
Accrued interest payable	851	1,109
Total Fair Value
Assets:
Cash and short-term investments	172,458	94,379
Securities available for sale	356,886	286,389
Loans, net	1,334,567	1,308,569
Loans held for sale	119,038	214,266
Bank-owned life insurance	20,440	20,205
Accrued interest receivable	7,382	8,103
Financial liabilities:
Demand and savings deposits	1,381,577	1,282,590
Time deposits	453,308	474,154
Borrowings	76,937	71,119
Accrued interest payable	851	1,109
Total Fair Value \| Level 1
Assets:
Cash and short-term investments	169,465	86,669
Accrued interest receivable	7,382	8,103
Financial liabilities:
Demand and savings deposits	1,381,577	1,282,590
Accrued interest payable	851	1,109
Total Fair Value \| Level 2
Assets:
Cash and short-term investments	2,993	7,710
Securities available for sale	356,886	286,389
Loans held for sale	119,038	214,266
Bank-owned life insurance	20,440	20,205
Financial liabilities:
Time deposits	453,308	474,154
Borrowings	76,937	71,119
Total Fair Value \| Level 3
Assets:
Loans, net	1,334,567	1,308,569
IRLC \| Carrying Value
Assets:
Derivatives	3,382	4,582
IRLC \| Total Fair Value
Assets:
Derivatives	3,382	4,582
IRLC \| Total Fair Value \| Level 2
Assets:
Derivatives	3,382	4,582
Interest rate swaps on loans \| Carrying Value
Assets:
Derivatives	5,547	8,185
Financial liabilities:
Derivatives	5,547	8,185
Interest rate swaps on loans \| Total Fair Value
Assets:
Derivatives	5,547	8,185
Financial liabilities:
Derivatives	5,547	8,185
Interest rate swaps on loans \| Total Fair Value \| Level 2
Assets:
Derivatives	5,547	8,185
Financial liabilities:
Derivatives	5,547	8,185
Forward sales of TBA securities \| Carrying Value
Financial liabilities:
Derivatives	43	47
Forward sales of TBA securities \| Total Fair Value
Financial liabilities:
Derivatives	43	47
Forward sales of TBA securities \| Total Fair Value \| Level 2
Financial liabilities:
Derivatives	43	47
Cash flow hedges \| Carrying Value
Financial liabilities:
Derivatives	1,127	1,882
Cash flow hedges \| Total Fair Value
Financial liabilities:
Derivatives	1,127	1,882
Cash flow hedges \| Total Fair Value \| Level 2
Financial liabilities:
Derivatives	1,127	1,882
Cash flow hedges \| Interest rate swaps on loans
Financial liabilities:
Derivatives	$ 1,127	$ 1,882

Business Segments - Segment Rep

Business Segments - Segment Reporting (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021USD ($)	Jun. 30, 2020USD ($)	Jun. 30, 2021USD ($)segment	Jun. 30, 2020USD ($)	Dec. 31, 2020USD ($)
Business Segments
Number of principal business segments \| segment			3
Interest income	$ 23,866	$ 23,584	$ 46,942	$ 48,362
Interest expense	2,138	3,330	4,538	7,505
Net interest income	21,728	20,254	42,404	40,857
Gains on sales of loans	5,947	4,605	13,005	8,281
Other noninterest income	7,153	7,223	14,451	10,295
Net revenue	34,828	32,082	69,860	59,433
Provision for loan losses	(600)	3,600	(320)	6,250
Noninterest expense	24,902	23,792	50,202	43,877
Income before income taxes	10,526	4,690	19,978	9,306
Income tax expense (benefit)	2,436	947	4,723	1,924
Net income	8,090	3,743	15,255	7,382
Capital expenditures	1,321	1,905	3,444	3,453
Depreciation and amortization	1,201	989	2,390	1,957
Total assets	2,168,644		2,168,644		$ 2,086,310
Operating Segments \| Community Banking
Business Segments
Interest income	15,935	14,894	31,111	30,809
Interest expense	1,456	2,718	3,180	5,862
Net interest income	14,479	12,176	27,931	24,947
Other noninterest income	3,852	3,018	7,820	6,303
Net revenue	18,331	15,194	35,751	31,250
Provision for loan losses	(200)	1,400	(200)	2,400
Noninterest expense	13,752	13,982	27,804	28,384
Income before income taxes	4,779	(188)	8,147	466
Income tax expense (benefit)	854	(482)	1,429	(485)
Net income	3,925	294	6,718	951
Capital expenditures	211	1,568	350	2,320
Depreciation and amortization	1,034	871	2,100	1,721
Total assets	2,023,814		2,023,814		1,951,622
Operating Segments \| Mortgage Banking
Business Segments
Interest income	1,021	1,097	2,148	1,758
Interest expense	312	280	685	585
Net interest income	709	817	1,463	1,173
Gains on sales of loans	5,957	4,605	13,062	8,281
Other noninterest income	2,308	2,387	5,032	3,998
Net revenue	8,974	7,809	19,557	13,452
Provision for loan losses	30		60
Noninterest expense	6,208	4,511	13,195	8,079
Income before income taxes	2,736	3,298	6,302	5,373
Income tax expense (benefit)	768	977	1,789	1,509
Net income	1,968	2,321	4,513	3,864
Capital expenditures	3	32	63	326
Depreciation and amortization	64	73	132	145
Total assets	143,854		143,854		239,417
Operating Segments \| Consumer Finance
Business Segments
Interest income	9,421	9,689	18,670	19,790
Interest expense	2,302	2,090	4,502	4,376
Net interest income	7,119	7,599	14,168	15,414
Other noninterest income	74	80	186	197
Net revenue	7,193	7,679	14,354	15,611
Provision for loan losses	(430)	2,200	(180)	3,850
Noninterest expense	3,683	3,236	7,131	6,866
Income before income taxes	3,940	2,243	7,403	4,895
Income tax expense (benefit)	1,065	605	2,001	1,327
Net income	2,875	1,638	5,402	3,568
Capital expenditures	1,107	305	3,031	807
Depreciation and amortization	103	45	158	91
Total assets	337,774		337,774		314,746
Operating Segments \| Other
Business Segments
Interest expense	588	338	1,170	677
Net interest income	(588)	(338)	(1,170)	(677)
Other noninterest income	945	1,738	1,456	(203)
Net revenue	357	1,400	286	(880)
Noninterest expense	1,259	2,063	2,072	548
Income before income taxes	(902)	(663)	(1,786)	(1,428)
Income tax expense (benefit)	(245)	(153)	(477)	(427)
Net income	(657)	(510)	(1,309)	(1,001)
Total assets	41,991		41,991		43,826
Eliminations
Business Segments
Interest income	(2,511)	(2,096)	(4,987)	(3,995)
Interest expense	(2,520)	$ (2,096)	(4,999)	$ (3,995)
Net interest income	9		12
Gains on sales of loans	(10)		(57)
Other noninterest income	(26)		(43)
Net revenue	(27)		(88)
Income before income taxes	(27)		(88)
Income tax expense (benefit)	(6)		(19)
Net income	(21)		(69)
Total assets	$ (378,789)		$ (378,789)		$ (463,301)

Business Segments - Merger Rela

Business Segments - Merger Related Expenses and Segment Debt (Details)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2021USD ($)	Jun. 30, 2020USD ($)	Jun. 30, 2021USD ($)item	Jun. 30, 2020USD ($)	Dec. 31, 2020USD ($)	Dec. 31, 2019USD ($)
Business Segments
Merger related costs	$ 0	$ 308,000	$ 0	$ 898,000	$ 2,100,000	$ 2,100,000
Merger related costs, after income taxes					$ 1,780,000	$ 1,780,000
Mortgage Banking
Business Segments
Number of intersegment lines of credit \| item			2
Mortgage Banking \| FHLB Advances \| Minimum
Business Segments
Variable rate, spread (as a percent)			0.50%
Mortgage Banking \| FHLB Advances \| Maximum
Business Segments
Variable rate, spread (as a percent)			1.75%
Consumer Finance
Business Segments
Floor variable rate (as a percent)			3.50%
Consumer Finance \| Minimum
Business Segments
Fixed rate (as a percent)	2.30%		2.30%
Consumer Finance \| Maximum
Business Segments
Fixed rate (as a percent)	8.00%		8.00%
Consumer Finance \| London Interbank Offered Rate (LIBOR) \| Minimum
Business Segments
Variable rate, spread (as a percent)			2.00%
Peoples Bankshares, Incorporated (Peoples)
Business Segments
Merger related costs		439,000		1,400,000
Merger related costs, after income taxes		347,000		1,130,000
Peoples Bankshares, Incorporated (Peoples) \| Community Banking
Business Segments
Merger related costs				1,300,000
Merger related costs, after income taxes				1,030,000
Peoples Bankshares, Incorporated (Peoples) \| Community Banking \| Noninterest expense
Business Segments
Merger related costs		439,000		998,000
Merger related costs, after income taxes		$ 347,000
Peoples Bankshares, Incorporated (Peoples) \| Community Banking \| Other noninterest income
Business Segments
Merger related costs				$ 298,000

Commitments and Contingent Li_2

Commitments and Contingent Liabilities - Loan Commitments (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Standby Letters of Credit
Commitments and Contingent Liabilities
Face amount of asset	$ 17,610	$ 19,070
Loan commitments
Commitments and Contingent Liabilities
Face amount of asset	$ 321,720	$ 326,980

Commitments and Contingent Li_3

Commitments and Contingent Liabilities - Other (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Commitments and Contingent Liabilities
Provision for indemnification losses	$ 15	$ 156	$ 32	$ 163
Mortgage Banking
Commitments and Contingent Liabilities
Recourse period for early payment default, minimum			90 days
Recourse period for early payment default, maximum			1 year
Indemnification reserve for recourse provisions
Commitments and Contingent Liabilities
Allowance for indemnifications	$ 3,390		$ 3,390		$ 3,360

Derivatives Financial Instrumen

Derivatives Financial Instruments (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Derivatives and other information
Changes in fair value of loan swaps	$ 0
Unpaid principal on mortgage loans held for sale	5,684	$ 6,420
Other assets
Derivatives and other information
Cash collateral	6,440	9,920
Forward sales of TBA securities \| Not designated as hedges
Derivatives and other information
Notional amount	15,250	8,000
Derivative Liability	43	47
Interest rate swaps on loans \| Cash flow hedges
Derivatives and other information
Notional amount	25,000	25,000
Derivative Liability	1,127	1,882
Matched interest rate swap with borrower \| Not designated as hedges
Derivatives and other information
Notional amount	84,134	84,753
Derivative Asset	5,423	8,185
Derivative Liability	124
Matched interest rate swap with counterparty \| Not designated as hedges
Derivatives and other information
Notional amount	84,134	84,753
Derivative Asset	124
Derivative Liability	5,423	8,185
IRLC \| Not designated as hedges
Derivatives and other information
Notional amount	154,744	198,632
Derivative Asset	3,382	4,582
Mortgage Banking
Derivatives and other information
IRLCs	10,820	7,670
Unpaid principal on mortgage loans held for sale	10,160	5,630
Mortgage Banking \| Best-efforts forward sales contracts
Derivatives and other information
IRLCs	143,920	190,960
Unpaid principal on mortgage loans held for sale	104,410	200,880
Mortgage loans		391,840
Mortgage Banking \| Forward sales of TBA securities
Derivatives and other information
Mortgage loans	15,250	8,000
Mortgage Banking \| Mandatory-delivery forward sales contracts
Derivatives and other information
Mortgage loans	4,640	$ 3,940
C&F Mortgage \| Best-efforts forward sales contracts
Derivatives and other information
Mortgage loans	$ 248,330

Other Noninterest Expenses (Det

Other Noninterest Expenses (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020	Dec. 31, 2019
Other Noninterest Expenses
Data processing fees	$ 2,825	$ 2,861	$ 5,728	$ 5,535
Mortgage banking loan processing expenses	867	780	1,761	1,264
Professional fees	737	738	1,484	1,718
Marketing and advertising expenses	459	348	804	838
Telecommunication expenses	387	409	761	781
Travel and educational expenses	203	100	357	544
Other real estate (gain)/loss and expenses, net	(395)	5	(402)	8
All other noninterest expenses	1,915	2,043	3,832	3,817
Total Other Noninterest Expenses	6,998	7,284	14,325	14,505
Merger related expenses	$ 0	308	$ 0	898	$ 2,100	$ 2,100
Merger related data processing fees		263		501
Merger related professional fees		22		336
Merger related other noninterest expenses		$ 23		$ 61