Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2021 | Oct. 29, 2021 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 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, $1.00 par value per share | |
Trading Symbol | CFFI | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 3,538,713 | |
Entity Central Index Key | 0000913341 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Assets | ||
Cash and due from banks | $ 15,001 | $ 17,742 |
Interest-bearing deposits in other banks | 186,494 | 68,927 |
Total cash and cash equivalents | 201,495 | 86,669 |
Securities-available for sale at fair value, amortized cost of | 363,413 | 286,389 |
Loans held for sale, at fair value | 116,789 | 214,266 |
Loans, net of allowance for loan losses of $39,447 and $39,156, respectively | 1,351,564 | 1,313,250 |
Restricted stock, at cost | 1,027 | 1,636 |
Corporate premises and equipment, net | 45,397 | 44,132 |
Other real estate owned, net of valuation allowance of $32 and $207, respectively | 857 | 907 |
Accrued interest receivable | 7,125 | 8,103 |
Goodwill | 25,191 | 25,191 |
Other intangible assets, net | 2,055 | 2,291 |
Bank-owned life insurance | 20,382 | 20,205 |
Net deferred tax asset | 13,977 | 13,555 |
Other assets | 60,136 | 69,716 |
Total assets | 2,209,408 | 2,086,310 |
Deposits | ||
Noninterest-bearing demand deposits | 576,065 | 501,945 |
Savings and interest-bearing demand deposits | 835,915 | 780,645 |
Time deposits | 441,105 | 469,583 |
Total deposits | 1,853,085 | 1,752,173 |
Short-term borrowings | 37,006 | 20,455 |
Long-term borrowings | 30,441 | 30,398 |
Trust preferred capital notes | 25,343 | 25,316 |
Accrued interest payable | 581 | 1,109 |
Other liabilities | 57,770 | 62,388 |
Total liabilities | 2,004,226 | 1,891,839 |
Commitments and contingent liabilities (Note 11) | ||
Equity | ||
Common stock ($1.00 par value, 8,000,000 shares authorized, 3,537,894 and 3,670,301 shares issued and outstanding, respectively, includes 149,762 and 155,945 of unvested shares, respectively) | 3,388 | 3,514 |
Additional paid-in capital | 15,390 | 21,427 |
Retained earnings | 189,301 | 170,819 |
Accumulated other comprehensive loss, net | (3,647) | (1,955) |
Equity attributable to C&F Financial Corporation | 204,432 | 193,805 |
Noncontrolling interest | 750 | 666 |
Total equity | 205,182 | 194,471 |
Total liabilities and equity | $ 2,209,408 | $ 2,086,310 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Consolidated Balance Sheets | ||
Available-for-sale securities, amortized cost | $ 360,981 | $ 280,824 |
Loans, allowance for loan losses | 39,447 | 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 | 3,537,894 | 3,670,301 |
Common stock, shares outstanding | 3,537,894 | 3,670,301 |
Common stock, unvested shares | 149,762 | 155,945 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Interest income | ||||
Interest and fees on loans | $ 22,120 | $ 22,506 | $ 66,399 | $ 67,607 |
Interest on interest-bearing deposits and federal funds sold | 77 | 32 | 171 | 682 |
Interest and dividends on securities | ||||
U.S. government agencies and corporations | 198 | 109 | 498 | 355 |
Mortgage-backed securities | 536 | 533 | 1,451 | 1,596 |
Tax-exempt obligations of states and political subdivisions | 395 | 498 | 1,300 | 1,507 |
Taxable obligations of states and political subdivisions | 104 | 102 | 288 | 302 |
Other | 174 | 42 | 439 | 135 |
Total interest income | 23,604 | 23,822 | 70,546 | 72,184 |
Interest expense | ||||
Savings and interest-bearing deposits | 346 | 346 | 1,049 | 1,287 |
Time deposits | 888 | 1,938 | 3,249 | 6,368 |
Borrowings | 462 | 404 | 1,365 | 1,962 |
Trust preferred capital notes | 290 | 289 | 861 | 865 |
Total interest expense | 1,986 | 2,977 | 6,524 | 10,482 |
Net interest income | 21,618 | 20,845 | 64,022 | 61,702 |
Provision for loan losses | 430 | 3,300 | 110 | 9,550 |
Net interest income after provision for loan losses | 21,188 | 17,545 | 63,912 | 52,152 |
Noninterest income | ||||
Gains on sales of loans | 5,660 | 9,706 | 18,665 | 17,987 |
Mortgage banking fee income | 1,630 | 2,206 | 5,134 | 5,497 |
Interchange income | 1,461 | 1,268 | 4,250 | 3,498 |
Service charges on deposit accounts | 992 | 785 | 2,639 | 2,426 |
Wealth management services income, net | 708 | 640 | 2,095 | 1,973 |
Mortgage lender services income | 598 | 706 | 1,991 | 1,348 |
Other service charges and fees | 386 | 390 | 1,188 | 1,159 |
Net gains on sales, maturities and calls of available for sale securities | 3 | 4 | 41 | 11 |
Other income, net | 604 | 1,233 | 3,495 | 1,615 |
Total noninterest income | 12,042 | 16,938 | 39,498 | 35,514 |
Noninterest expenses | ||||
Salaries and employee benefits | 13,915 | 15,767 | 45,242 | 40,938 |
Occupancy | 2,231 | 2,131 | 6,781 | 6,331 |
Other | 7,030 | 7,433 | 21,355 | 21,939 |
Total noninterest expenses | 23,176 | 25,331 | 73,378 | 69,208 |
Income before income taxes | 10,054 | 9,152 | 30,032 | 18,458 |
Income tax expense | 2,227 | 2,234 | 6,950 | 4,158 |
Net income | 7,827 | 6,918 | 23,082 | 14,300 |
Less net income attributable to noncontrolling interest | 153 | 125 | 339 | 183 |
Net income attributable to C&F Financial Corporation | $ 7,674 | $ 6,793 | $ 22,743 | $ 14,117 |
Net income per share - basic and diluted (in dollars per share) | $ 2.16 | $ 1.86 | $ 6.27 | $ 3.87 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | ||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||||
Net income | $ 7,827 | $ 6,918 | $ 23,082 | $ 14,300 | |
Defined benefit plan: | |||||
Reclassification of recognized net actuarial losses into net income1 | [1] | 61 | 49 | 182 | 148 |
Related income tax effects | (13) | (10) | (38) | (31) | |
Amortization of prior service credit into net income1 | [1] | (17) | (17) | (51) | (51) |
Related income tax effects | 4 | 4 | 11 | 11 | |
Defined benefit plan, net of tax | 35 | 26 | 104 | 77 | |
Cash flow hedges: | |||||
Unrealized holding gains (losses) arising during the period | 166 | 127 | 921 | (2,001) | |
Related income tax effects | (43) | (32) | (237) | 515 | |
Amortization of hedging gains into net income2 | [2] | (1) | (3) | (5) | (9) |
Related income tax effects | 1 | 2 | |||
Cash flow hedges, net of tax | 122 | 92 | 680 | (1,493) | |
Securities available for sale: | |||||
Unrealized holding (losses) gains arising during the period | (1,112) | (261) | (3,094) | 3,727 | |
Related income tax effects | 234 | 54 | 650 | (783) | |
Reclassification of net realized gains into net income3 | [3] | (3) | (4) | (41) | (11) |
Related income tax effects | 1 | 1 | 9 | 2 | |
Securities available for sale, net of tax | (880) | (210) | (2,476) | 2,935 | |
Other comprehensive (loss) income, net of tax | (723) | (92) | (1,692) | 1,519 | |
Comprehensive income | 7,104 | 6,826 | 21,390 | 15,819 | |
Less comprehensive income attributable to noncontrolling interest | 153 | 125 | 339 | 183 | |
Comprehensive income attributable to C&F Financial Corporation | $ 6,951 | $ 6,701 | $ 21,051 | $ 15,636 | |
[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 | 14,117 | 183 | 14,300 | |||
Other comprehensive income (loss) | 1,519 | 1,519 | ||||
Share-based compensation | 1,012 | 1,012 | ||||
Restricted stock vested | 17 | (17) | ||||
Acquisition of Peoples Bankshares, Incorporated | 210 | 11,402 | 11,612 | |||
Common stock issued | 2 | 107 | 109 | |||
Common stock purchased | (14) | (605) | (619) | |||
Cash dividends declared | (4,160) | (4,160) | ||||
Balance, end of period at Sep. 30, 2020 | 3,511 | 21,402 | 164,205 | (730) | 664 | 189,052 |
Balance, beginning of the period at Jun. 30, 2020 | 3,510 | 21,055 | 158,799 | (638) | 539 | 183,265 |
Comprehensive income: | ||||||
Net income | 6,793 | 125 | 6,918 | |||
Other comprehensive income (loss) | (92) | (92) | ||||
Share-based compensation | 311 | 311 | ||||
Restricted stock vested | 1 | (1) | ||||
Common stock issued | 38 | 38 | ||||
Common stock purchased | (1) | (1) | ||||
Cash dividends declared | (1,387) | (1,387) | ||||
Balance, end of period at Sep. 30, 2020 | 3,511 | 21,402 | 164,205 | (730) | 664 | 189,052 |
Balance, beginning of the period at Dec. 31, 2020 | 3,514 | 21,427 | 170,819 | (1,955) | 666 | 194,471 |
Comprehensive income: | ||||||
Net income | 22,743 | 339 | 23,082 | |||
Other comprehensive income (loss) | (1,692) | (1,692) | ||||
Share-based compensation | 1,206 | 1,206 | ||||
Restricted stock vested | 21 | (21) | ||||
Common stock issued | 3 | 131 | 134 | |||
Common stock purchased | (150) | (7,353) | (7,503) | |||
Cash dividends declared | (4,261) | (4,261) | ||||
Distributions to noncontrolling interest | (255) | (255) | ||||
Balance, end of period at Sep. 30, 2021 | 3,388 | 15,390 | 189,301 | (3,647) | 750 | 205,182 |
Balance, beginning of the period at Jun. 30, 2021 | 3,439 | 17,643 | 183,043 | (2,924) | 597 | 201,798 |
Comprehensive income: | ||||||
Net income | 7,674 | 153 | 7,827 | |||
Other comprehensive income (loss) | (723) | (723) | ||||
Share-based compensation | 386 | 386 | ||||
Restricted stock vested | 1 | (1) | ||||
Common stock issued | 48 | 48 | ||||
Common stock purchased | (52) | (2,686) | (2,738) | |||
Cash dividends declared | (1,416) | (1,416) | ||||
Balance, end of period at Sep. 30, 2021 | $ 3,388 | $ 15,390 | $ 189,301 | $ (3,647) | $ 750 | $ 205,182 |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (Parentheticals) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
CONSOLIDATED STATEMENTS OF EQUITY | ||||
Cash dividends declared - common stock (in dollars per share) | $ 0.40 | $ 0.38 | $ 1.18 | $ 1.14 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Operating activities: | ||
Net income | $ 23,082 | $ 14,300 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Provision for loan losses | 110 | 9,550 |
Accretion of certain acquisition-related discounts, net | (2,401) | (2,631) |
Share-based compensation | 1,206 | 1,012 |
Depreciation and amortization | 3,578 | 3,028 |
Accretion of discounts and amortization of premiums on securities, net | 2,629 | 1,564 |
Income from bank-owned life insurance | (312) | (320) |
Pension expense | 652 | 593 |
Proceeds from sales of loans held for sale | 1,276,899 | 1,070,338 |
Origination of loans held for sale | (1,163,845) | (1,226,538) |
Gains on sales of loans held for sale | (18,665) | (17,987) |
Other (gains) losses, net | (519) | 862 |
Change in other assets and liabilities: | ||
Accrued interest receivable | 978 | (623) |
Other assets | 447 | 5,934 |
Accrued interest payable | (528) | (460) |
Other liabilities | (3,544) | 4,056 |
Net cash provided by (used in) operating activities | 119,767 | (137,322) |
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 | 85,293 | 101,068 |
Purchases of securities available for sale | (168,040) | (164,094) |
Maturities (purchases) of time deposits, net | 4,692 | (6,466) |
Repayments on loans held for investment by non-bank affiliates | 120,088 | 96,460 |
Purchases of loans held for investment by non-bank affiliates | (156,677) | (98,760) |
Net decrease (increase) in community banking loans held for investment | 3,330 | (118,640) |
Purchases of corporate premises and equipment | (4,377) | (7,655) |
Proceeds from sales of other real estate owned | 457 | |
Changes in collateral posted with other financial institutions, net | 3,960 | (9,340) |
Other investing activities, net | 834 | 310 |
Net cash used in investing activities | (110,440) | (180,012) |
Financing activities: | ||
Net increase in demand and savings deposits | 129,390 | 220,379 |
Net decrease in time deposits | (28,269) | (19,723) |
Net increase in short-term borrowings | 16,551 | 44,121 |
Proceeds from long-term borrowings | 20,000 | |
Repayments of long-term borrowings | (82,553) | |
Repurchases of common stock | (7,503) | (355) |
Cash dividends paid | (4,261) | (4,160) |
Other financing activities, net | (409) | (35) |
Net cash provided by financing activities | 105,499 | 177,674 |
Net increase (decrease) in cash and cash equivalents | 114,826 | (139,660) |
Cash and cash equivalents at beginning of period | 86,669 | 165,433 |
Cash and cash equivalents at end of period | 201,495 | 25,773 |
Supplemental cash flow disclosures: | ||
Interest paid | 7,295 | 11,195 |
Income taxes paid | 8,429 | 3,847 |
Supplemental disclosure of noncash investing and financing activities: | ||
Liabilities assumed to acquire right of use assets under operating leases | 1,931 | 842 |
Liabilities assumed to acquire right of use assets under finance leases | 6,359 | |
Transfers from loans held for sale to loans held for investment | $ 2,911 | $ 1,810 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 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 September 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 nine 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 20,462 44.13 Vested (21,195) 44.18 Forfeited (5,450) 45.89 Unvested, September 30, 2021 149,762 48.63 2020 Weighted- Average Grant Date Shares Fair Value Unvested, December 31, 2019 142,020 $ 48.88 Granted 14,770 53.03 Vested (16,555) 40.20 Forfeited (3,530) 52.86 Unvested, September 30, 2020 136,705 50.32 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 | 9 Months Ended |
Sep. 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 $1.40 million ($1.13 million after income taxes) for the nine months ended September 30, 2020. There were no merger related expenses during the three months ended September 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 | 9 Months Ended |
Sep. 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: September 30, 2021 Gross Gross Amortized Unrealized Unrealized (Dollars in thousands) Cost Gains Losses Fair Value U.S. government agencies and corporations $ 63,271 $ 73 $ (772) $ 62,572 Mortgage-backed securities 184,548 2,105 (533) 186,120 Obligations of states and political subdivisions 94,872 1,748 (315) 96,305 Corporate and other debt securities 18,290 190 (64) 18,416 $ 360,981 $ 4,116 $ (1,684) $ 363,413 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 September 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. September 30, 2021 Amortized (Dollars in thousands) Cost Fair Value Due in one year or less $ 62,145 $ 62,010 Due after one year through five years 200,714 203,445 Due after five years through ten years 89,131 89,136 Due after ten years 8,991 8,822 $ 360,981 $ 363,413 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 September 30, 2021 or 2020. During the nine months ended September 30, 2021 and 2020, $2.30 million and $5.99 million of proceeds, respectively, were related to sales of securities. Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2021 2020 2021 2020 Realized gains from sales, maturities and calls of securities: Gross realized gains $ 3 $ 4 $ 41 $ 11 Gross realized losses — — — — Net realized gains $ 3 $ 4 $ 41 $ 11 Proceeds from sales, maturities, calls and paydowns of securities $ 29,798 $ 30,288 $ 85,293 $ 101,068 The Corporation pledges securities primarily to secure public deposits and repurchase agreements. Securities with an aggregate amortized cost of $157.62 million and an aggregate fair value of $159.86 million were pledged at September 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 September 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 $ 46,809 $ 724 $ 1,451 $ 48 $ 48,260 $ 772 Mortgage-backed securities 94,098 511 4,341 22 98,439 533 Obligations of states and political subdivisions 20,132 279 1,273 36 21,405 315 Corporate and other debt securities 9,077 64 — — 9,077 64 Total temporarily impaired securities $ 170,116 $ 1,578 $ 7,065 $ 106 $ 177,181 $ 1,684 There were 133 debt securities totaling $177.18 million of aggregate fair value considered temporarily impaired at September 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 September 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 September 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 September 30, 2021 and no impairment has been recognized. |
Loans
Loans | 9 Months Ended |
Sep. 30, 2021 | |
Loans | |
Loans | NOTE 4: Loans Major classifications of loans are summarized as follows: September 30, December 31, (Dollars in thousands) 2021 2020 Real estate – residential mortgage $ 215,166 $ 218,298 Real estate – construction 1 53,845 62,147 Commercial, financial and agricultural 2 721,824 700,215 Equity lines 42,881 48,466 Consumer 8,165 11,028 Consumer finance 349,130 312,252 1,391,011 1,352,406 Less allowance for loan losses (39,447) (39,156) Loans, net $ 1,351,564 $ 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 $232,000 and $284,000 of demand deposit overdrafts at September 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 September 30, 2021 and December 31, 2020 of loans acquired in business combinations were as follows: September 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 $ 10,517 $ 62,063 $ 72,580 $ 12,760 $ 89,043 $ 101,803 Carrying amount Real estate – residential mortgage $ 854 $ 11,125 $ 11,979 $ 1,473 $ 15,117 $ 16,590 Real estate – construction — 1,246 1,246 — 1,077 1,077 Commercial, financial and agricultural 1 4,510 39,739 44,249 4,758 58,796 63,554 Equity lines 35 7,482 7,517 80 10,182 10,262 Consumer 41 1,319 1,360 48 1,924 1,972 Total acquired loans $ 5,440 $ 60,911 $ 66,351 $ 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): Nine Months Ended September 30, (Dollars in thousands) 2021 2020 Accretable yield, balance at beginning of period $ 4,048 $ 4,721 Acquisition of Peoples — 3,372 Accretion (1,901) (2,172) Reclassification of nonaccretable difference due to improvement in expected cash flows 713 440 Other changes, net 477 (1,492) Accretable yield, balance at end of period $ 3,337 $ 4,869 Loans on nonaccrual status were as follows: September 30, December 31, (Dollars in thousands) 2021 2020 Real estate – residential mortgage $ 317 $ 276 Commercial, financial and agricultural: Commercial business lending 2,235 2,428 Equity lines 185 191 Consumer 4 107 Consumer finance 198 402 Total loans on nonaccrual status $ 2,939 $ 3,404 The past due status of loans as of September 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 $ 768 $ 251 $ 301 $ 1,320 $ 854 $ 212,992 $ 215,166 $ — Real estate – construction: Construction lending — — — — — 36,159 36,159 — Consumer lot lending — — — — — 17,686 17,686 — Commercial, financial and agricultural: Commercial real estate lending 43 — — 43 4,510 495,772 500,325 — Land acquisition and development lending — — — — — 37,242 37,242 — Builder line lending — — — — — 29,748 29,748 — Commercial business lending — — — — — 154,509 154,509 — Equity lines — 50 72 122 35 42,724 42,881 72 Consumer 6 — — 6 41 8,118 8,165 — Consumer finance 5,694 801 198 6,693 — 342,437 349,130 — Total $ 6,511 $ 1,102 $ 571 $ 8,184 $ 5,440 $ 1,377,387 $ 1,391,011 $ 72 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 $2.44 million and 90+ days past due of $499,000. 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 September 30, 2021 that were classified as a troubled debt restructuring (TDR). There were two loan modifications during the three months ended September 30, 2020 that were classified as TDRs. These TDRs were a modification of the payment structure of residential mortgage loans with a recorded investment of $176,000 at the time of the modification. There was one loan modification during the nine months ended September 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 were three loan modifications during the nine months ended September 30, 2020 that were classified as TDRs. These TDRs were a modification of the payment structure of two residential mortgage loans with a recorded investment of $176,000 at the time of modification and 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 nine months ended September 30, 2021 and 2020. Impaired loans, which included TDRs of $2.70 million, and the related allowance at September 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 $ 1,550 $ 402 $ 1,042 $ 68 $ 1,566 $ 47 Commercial, financial and agricultural: Commercial real estate lending 1,391 — 1,393 86 1,394 54 Commercial business lending 2,318 — 2,235 263 2,320 — Equity lines 118 108 — — 115 1 Consumer — — — — — — Total $ 5,377 $ 510 $ 4,670 $ 417 $ 5,395 $ 102 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 | 9 Months Ended |
Sep. 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 nine months ended September 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 (99) (183) 422 (90) (160) 220 110 Loans charged off — — — — (128) (3,443) (3,571) Recoveries of loans previously charged off 19 — 2 1 93 3,637 3,752 Balance at September 30, 2021 $ 2,834 $ 792 $ 11,120 $ 598 $ 176 $ 23,927 $ 39,447 The following table presents the changes in the allowance for loan losses by major classification during the nine months ended September 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 (credited) to operations 337 232 3,446 (78) (37) 5,650 9,550 Loans charged off (9) — (18) — (174) (7,005) (7,206) Recoveries of loans previously charged off 79 — 3 — 135 3,422 3,639 Balance at September 30, 2020 $ 2,487 $ 913 $ 10,552 $ 655 $ 389 $ 23,860 $ 38,856 The following table presents, as of September 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 $ 68 $ — $ 349 $ — $ — $ — $ 417 Collectively evaluated for impairment 2,766 792 10,771 598 176 23,927 39,030 Acquired loans - PCI — — — — — — — Total allowance $ 2,834 $ 792 $ 11,120 $ 598 $ 176 $ 23,927 $ 39,447 Loans: Individually evaluated for impairment $ 1,444 $ — $ 3,628 $ 108 $ — $ — $ 5,180 Collectively evaluated for impairment 212,868 53,845 713,686 42,738 8,124 349,130 1,380,391 Acquired loans - PCI 854 — 4,510 35 41 — 5,440 Total loans $ 215,166 $ 53,845 $ 721,824 $ 42,881 $ 8,165 $ 349,130 $ 1,391,011 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 September 30, 2021 were as follows: Special Substandard (Dollars in thousands) Pass Mention Substandard Nonaccrual Total 1 Real estate – residential mortgage $ 213,523 $ 873 $ 453 $ 317 $ 215,166 Real estate – construction: Construction lending 36,159 — — — 36,159 Consumer lot lending 17,686 — — — 17,686 Commercial, financial and agricultural: Commercial real estate lending 477,246 15,484 7,595 — 500,325 Land acquisition and development lending 37,242 — — — 37,242 Builder line lending 29,748 — — — 29,748 Commercial business lending 150,974 1,300 — 2,235 154,509 Equity lines 42,475 137 84 185 42,881 Consumer 8,161 — — 4 8,165 $ 1,013,214 $ 17,794 $ 8,132 $ 2,741 $ 1,041,881 1 At September 30, 2021, the Corporation did not have any loans classified as Doubtful or Loss. Non- (Dollars in thousands) Performing Performing Total Consumer finance $ 348,932 $ 198 $ 349,130 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 | 9 Months Ended |
Sep. 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 September 30, 2021 and December 31, 2020. The following table presents the changes in goodwill during the nine months ended September 30, 2020. There were no changes in the recorded balance of goodwill during the three and nine months ended September 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 September 30, 2020 $ 14,468 $ 10,723 $ 25,191 The Corporation had $2.06 million and $2.29 million of other intangible assets as of September 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: September 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 $ (287) $ 1,711 $ (171) Other amortizable intangibles 1,405 (774) 1,405 (654) Total $ 3,116 $ (1,061) $ 3,116 $ (825) Amortization expense was $79,000 and $83,000 for the three months ended September 30, 2021 and 2020, respectively and $236,000 and $248,000 for the nine months ended September 30, 2021 and 2020, respectively. |
Equity, Other Comprehensive Inc
Equity, Other Comprehensive Income and Earnings Per Share | 9 Months Ended |
Sep. 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 September 30, 2021, the Corporation has made aggregate common stock repurchases of 150,333 shares for an aggregate cost of $7.46 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 nine months ended September 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 September 30, 2020. Additionally during the nine months ended September 30, 2021 and 2020, the Corporation withheld 7,596 shares and 5,084 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 $1.02 million and $630,000 as of September 30, 2021 and December 31, 2020, respectively. September 30, December 31, (Dollars in thousands) 2021 2020 Net unrealized gains on securities $ 1,921 $ 4,397 Net unrecognized losses on cash flow hedges (687) (1,367) Net unrecognized losses on defined benefit plan (4,881) (4,985) Total accumulated other comprehensive loss, net $ (3,647) $ (1,955) Earnings Per Share (EPS) The components of the Corporation’s EPS calculations are as follows: Three Months Ended September 30, (Dollars in thousands) 2021 2020 Net income attributable to C&F Financial Corporation $ 7,674 $ 6,793 Weighted average shares outstanding — 3,550,001 3,648,515 Nine Months Ended September 30, (Dollars in thousands) 2021 2020 Net income attributable to C&F Financial Corporation $ 22,743 $ 14,117 Weighted average shares outstanding — 3,626,083 3,646,951 The Corporation has applied the two-class method of computing basic and diluted EPS for each period presented because the Corporation’s unvested restricted shares outstanding contain rights to nonforfeitable dividends equal to dividends on the Corporation’s common stock. Accordingly, the weighted average number of shares used in the calculation of basic and diluted EPS includes both vested and unvested shares outstanding. |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Sep. 30, 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 September 30, Nine Months Ended September 30, (Dollars in thousands) 2021 2020 2021 2020 Components of net periodic benefit cost: Service cost, included in salaries and employee benefits $ 493 $ 401 $ 1,478 $ 1,202 Other components of net periodic benefit cost: Interest cost 114 138 343 413 Expected return on plan assets (433) (374) (1,300) (1,119) Amortization of prior service credit (17) (17) (51) (51) Recognized net actuarial losses 61 49 182 148 Other components of net periodic benefit cost, included in other noninterest income (275) (204) (826) (609) Net periodic benefit cost $ 218 $ 197 $ 652 $ 593 |
Fair Value of Assets and Liabil
Fair Value of Assets and Liabilities | 9 Months Ended |
Sep. 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. The following table presents the balances of financial assets and liabilities measured at fair value on a recurring basis. September 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 $ — $ 62,572 $ — $ 62,572 Mortgage-backed securities — 186,120 — 186,120 Obligations of states and political subdivisions — 96,305 — 96,305 Corporate and other debt securities — 18,416 — 18,416 Total securities available for sale — 363,413 — 363,413 Loans held for sale — 116,789 — 116,789 Derivatives IRLC — 2,875 — 2,875 Interest rate swaps on loans — 4,961 — 4,961 Forward sales of TBA securities — 45 — 45 Total assets $ — $ 488,083 $ — $ 488,083 Liabilities: Derivatives Interest rate swaps on loans $ — $ 4,961 $ — $ 4,961 Cash flow hedges — 960 — 960 Total liabilities $ — $ 5,921 $ — $ 5,921 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). sell if valuations indicate a further deterioration in market conditions. As such, the Corporation records OREO as a nonrecurring fair value measurement classified as Level 3. The following table presents the balances of assets measured at fair value on a nonrecurring basis. At September 30, 2021 and December 31, 2020 there were no impaired loans that were measured at fair value. September 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 September 30, 2021 and December 31, 2020: Fair Value Measurements (Dollars in thousands) Fair Value Valuation Technique(s) Unobservable Inputs Range (Weighted Average) 1 At September 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 September 30, 2021 Classified as Total Fair (Dollars in thousands) Value Level 1 Level 2 Level 3 Value Financial assets: Cash and short-term investments $ 204,475 $ 201,495 $ 2,479 $ — $ 203,974 Securities available for sale 363,413 — 363,413 — 363,413 Loans, net 1,351,564 — — 1,368,093 1,368,093 Loans held for sale 116,789 — 116,789 — 116,789 Derivatives IRLC 2,875 — 2,875 — 2,875 Interest rate swaps on loans 4,961 — 4,961 — 4,961 Forward sales of TBA securities 45 — 45 — 45 Bank-owned life insurance 20,382 — 20,382 — 20,382 Accrued interest receivable 7,125 7,125 — — 7,125 Financial liabilities: Demand and savings deposits 1,411,980 1,411,980 — — 1,411,980 Time deposits 441,105 — 444,446 — 444,446 Borrowings 86,394 — 91,484 — 91,484 Derivatives Cash flow hedges 960 — 960 — 960 Interest rate swaps on loans 4,961 — 4,961 — 4,961 Accrued interest payable 581 581 — — 581 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 | 9 Months Ended |
Sep. 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 September 30, 2021 Community Mortgage Consumer (Dollars in thousands) Banking Banking Finance Other Eliminations Consolidated Interest income $ 15,924 $ 863 $ 9,388 $ — $ (2,571) $ 23,604 Interest expense 1,301 240 2,424 589 (2,568) 1,986 Net interest income 14,623 623 6,964 (589) (3) 21,618 Gain on sales of loans — 5,691 — — (31) 5,660 Other noninterest income 4,202 2,266 45 (115) (16) 6,382 Net revenue 18,825 8,580 7,009 (704) (50) 33,660 Provision for loan losses — 30 400 — — 430 Noninterest expense 13,827 5,643 3,580 126 — 23,176 Income (loss) before taxes 4,998 2,907 3,029 (830) (50) 10,054 Income tax expense (benefit) 832 799 835 (229) (10) 2,227 Net income (loss) $ 4,166 $ 2,108 $ 2,194 $ (601) $ (40) $ 7,827 Other data: Capital expenditures $ 234 $ 55 $ 644 $ — $ — $ 933 Depreciation and amortization $ 1,015 $ 61 $ 112 $ — $ — $ 1,188 Three Months Ended September 30, 2020 Community Mortgage Consumer (Dollars in thousands) Banking Banking Finance Other Eliminations Consolidated Interest income $ 15,242 $ 1,503 $ 9,628 $ — $ (2,551) $ 23,822 Interest expense 2,547 449 2,191 342 (2,552) 2,977 Net interest income 12,695 1,054 7,437 (342) 1 20,845 Gain on sales of loans — 9,755 — — (49) 9,706 Other noninterest income 3,526 2,915 93 701 (3) 7,232 Net revenue 16,221 13,724 7,530 359 (51) 37,783 Provision for loan losses 1,500 — 1,800 — — 3,300 Noninterest expense 13,260 7,634 3,530 907 — 25,331 Income (loss) before taxes 1,461 6,090 2,200 (548) (51) 9,152 Income tax expense (benefit) 149 1,640 599 (154) — 2,234 Net income (loss) $ 1,312 $ 4,450 $ 1,601 $ (394) $ (51) $ 6,918 Other data: Capital expenditures $ 3,234 $ 14 $ 954 $ — $ — $ 4,202 Depreciation and amortization $ 958 $ 71 $ 42 $ — $ — $ 1,071 Nine Months Ended September 30, 2021 Community Mortgage Consumer (Dollars in thousands) Banking Banking Finance Other Eliminations Consolidated Interest income $ 47,035 $ 3,011 $ 28,058 $ — $ (7,558) $ 70,546 Interest expense 4,481 925 6,926 1,759 (7,567) 6,524 Net interest income 42,554 2,086 21,132 (1,759) 9 64,022 Gain on sales of loans — 18,753 — — (88) 18,665 Other noninterest income 12,022 7,298 231 1,341 (59) 20,833 Net revenue 54,576 28,137 21,363 (418) (138) 103,520 Provision for loan losses (200) 90 220 — — 110 Noninterest expense 41,631 18,838 10,711 2,198 — 73,378 Income (loss) before taxes 13,145 9,209 10,432 (2,616) (138) 30,032 Income tax expense (benefit) 2,261 2,588 2,836 (706) (29) 6,950 Net income (loss) $ 10,884 $ 6,621 $ 7,596 $ (1,910) $ (109) $ 23,082 Other data: Capital expenditures $ 584 $ 118 $ 3,675 $ — $ — $ 4,377 Depreciation and amortization $ 3,115 $ 193 $ 270 $ — $ — $ 3,578 Nine Months Ended September 30, 2020 Community Mortgage Consumer (Dollars in thousands) Banking Banking Finance Other Eliminations Consolidated Interest income $ 46,051 $ 3,261 $ 29,418 $ — $ (6,546) $ 72,184 Interest expense 8,409 1,034 6,567 1,019 (6,547) 10,482 Net interest income 37,642 2,227 22,851 (1,019) 1 61,702 Gain on sales of loans — 18,036 — — (49) 17,987 Other noninterest income 9,829 6,913 290 498 (3) 17,527 Net revenue 47,471 27,176 23,141 (521) (51) 97,216 Provision for loan losses 3,900 — 5,650 — — 9,550 Noninterest expense 41,644 15,713 10,396 1,455 — 69,208 Income (loss) before taxes 1,927 11,463 7,095 (1,976) (51) 18,458 Income tax expense (benefit) (336) 3,149 1,926 (581) — 4,158 Net income (loss) $ 2,263 $ 8,314 $ 5,169 $ (1,395) $ (51) $ 14,300 Other data: Capital expenditures $ 5,554 $ 340 $ 1,761 $ — $ — $ 7,655 Depreciation and amortization $ 2,679 $ 216 $ 133 $ — $ — $ 3,028 Community Mortgage Consumer (Dollars in thousands) Banking Banking Finance Other Eliminations Consolidated Total assets at September 30, 2021 $ 2,061,796 $ 139,406 $ 353,319 $ 41,813 $ (386,926) $ 2,209,408 Total assets at December 31, 2020 $ 1,951,622 $ 239,417 $ 314,746 $ 43,826 $ (463,301) $ 2,086,310 During the nine months ended September 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. No merger related expenses were recorded during the three months ended September 30, 2020. 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 2.2 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 | 9 Months Ended |
Sep. 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 $314.65 million at September 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 $19.17 million at September 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 nine months ended September 30, 2021, the Corporation recorded $20,000 and $52,000 of provision for indemnifications, respectively, compared to $9,000 and $172,000 provision for indemnifications for the three and nine months ended September 30, 2020, respectively. The allowance for indemnifications was $3.41 million at September 30, 2021 and $3.36 million at December 31, 2020. |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 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 September 30, 2021, the mortgage banking segment had $136.01 million of IRLCs and $102.11 million of unpaid principal on mortgage loans held for sale for which it managed interest rate risk using best-efforts forward sales contracts for $238.12 million in mortgage loans. Also at September 30, 2021, the mortgage banking segment had $12.13 million of IRLCs and $10.55 million of unpaid principal on mortgage loans held for sale for which it managed interest rate risk using forward sales of $16.50 million of TBA securities and mandatory-delivery forward sales contracts for $5.34 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 September 30, 2021 or December 31, 2020. September 30, 2021 Notional (Dollars in thousands) Amount Assets Liabilities Cash flow hedges: Interest rate swap contracts $ 25,000 $ — $ 960 Not designated as hedges: Customer-related interest rate swap contracts: Matched interest rate swaps with borrower 83,819 4,794 167 Matched interest rate swaps with counterparty 83,819 167 4,794 Mortgage banking contracts: IRLCs 148,144 2,875 — Forward sales of TBA securities 16,500 45 — 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 September 30, 2021 and at December 31, 2020, $5.96 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 | 9 Months Ended |
Sep. 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 September 30, Nine Months Ended September 30, (Dollars in thousands) 2021 2020 2021 2020 Data processing fees $ 2,791 $ 2,607 $ 8,519 $ 8,142 Mortgage banking loan processing expenses 697 916 2,458 2,180 Professional fees 675 706 2,159 2,424 Telecommunication expenses 390 311 1,151 1,092 Marketing and advertising expenses 374 369 1,178 1,207 Travel and educational expenses 263 430 620 974 Other real estate (gain)/loss and expenses, net 2 76 (400) 84 All other noninterest expenses 1,838 2,018 5,670 5,836 Total other noninterest expenses $ 7,030 $ 7,433 $ 21,355 $ 21,939 The table above includes merger related expenses for the nine months ended September 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 or nine months ended September 30, 2021 or the three months ended September 30, 2020. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 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 September 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 nine 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 20,462 44.13 Vested (21,195) 44.18 Forfeited (5,450) 45.89 Unvested, September 30, 2021 149,762 48.63 2020 Weighted- Average Grant Date Shares Fair Value Unvested, December 31, 2019 142,020 $ 48.88 Granted 14,770 53.03 Vested (16,555) 40.20 Forfeited (3,530) 52.86 Unvested, September 30, 2020 136,705 50.32 |
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) | 9 Months Ended |
Sep. 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 20,462 44.13 Vested (21,195) 44.18 Forfeited (5,450) 45.89 Unvested, September 30, 2021 149,762 48.63 2020 Weighted- Average Grant Date Shares Fair Value Unvested, December 31, 2019 142,020 $ 48.88 Granted 14,770 53.03 Vested (16,555) 40.20 Forfeited (3,530) 52.86 Unvested, September 30, 2020 136,705 50.32 |
Business Combination (Tables)
Business Combination (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Schedule of acquired loans | September 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 $ 10,517 $ 62,063 $ 72,580 $ 12,760 $ 89,043 $ 101,803 Carrying amount Real estate – residential mortgage $ 854 $ 11,125 $ 11,979 $ 1,473 $ 15,117 $ 16,590 Real estate – construction — 1,246 1,246 — 1,077 1,077 Commercial, financial and agricultural 1 4,510 39,739 44,249 4,758 58,796 63,554 Equity lines 35 7,482 7,517 80 10,182 10,262 Consumer 41 1,319 1,360 48 1,924 1,972 Total acquired loans $ 5,440 $ 60,911 $ 66,351 $ 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) | 9 Months Ended |
Sep. 30, 2021 | |
Securities | |
Summary of available for sale debt securities | September 30, 2021 Gross Gross Amortized Unrealized Unrealized (Dollars in thousands) Cost Gains Losses Fair Value U.S. government agencies and corporations $ 63,271 $ 73 $ (772) $ 62,572 Mortgage-backed securities 184,548 2,105 (533) 186,120 Obligations of states and political subdivisions 94,872 1,748 (315) 96,305 Corporate and other debt securities 18,290 190 (64) 18,416 $ 360,981 $ 4,116 $ (1,684) $ 363,413 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 | September 30, 2021 Amortized (Dollars in thousands) Cost Fair Value Due in one year or less $ 62,145 $ 62,010 Due after one year through five years 200,714 203,445 Due after five years through ten years 89,131 89,136 Due after ten years 8,991 8,822 $ 360,981 $ 363,413 |
Schedule of gross realized gains and losses and the proceeds | Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2021 2020 2021 2020 Realized gains from sales, maturities and calls of securities: Gross realized gains $ 3 $ 4 $ 41 $ 11 Gross realized losses — — — — Net realized gains $ 3 $ 4 $ 41 $ 11 Proceeds from sales, maturities, calls and paydowns of securities $ 29,798 $ 30,288 $ 85,293 $ 101,068 |
Schedule of securities in an unrealized loss position | Securities in an unrealized loss position at September 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 $ 46,809 $ 724 $ 1,451 $ 48 $ 48,260 $ 772 Mortgage-backed securities 94,098 511 4,341 22 98,439 533 Obligations of states and political subdivisions 20,132 279 1,273 36 21,405 315 Corporate and other debt securities 9,077 64 — — 9,077 64 Total temporarily impaired securities $ 170,116 $ 1,578 $ 7,065 $ 106 $ 177,181 $ 1,684 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) | 9 Months Ended |
Sep. 30, 2021 | |
Loans | |
Summary of major classifications of loans | September 30, December 31, (Dollars in thousands) 2021 2020 Real estate – residential mortgage $ 215,166 $ 218,298 Real estate – construction 1 53,845 62,147 Commercial, financial and agricultural 2 721,824 700,215 Equity lines 42,881 48,466 Consumer 8,165 11,028 Consumer finance 349,130 312,252 1,391,011 1,352,406 Less allowance for loan losses (39,447) (39,156) Loans, net $ 1,351,564 $ 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 | September 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 $ 10,517 $ 62,063 $ 72,580 $ 12,760 $ 89,043 $ 101,803 Carrying amount Real estate – residential mortgage $ 854 $ 11,125 $ 11,979 $ 1,473 $ 15,117 $ 16,590 Real estate – construction — 1,246 1,246 — 1,077 1,077 Commercial, financial and agricultural 1 4,510 39,739 44,249 4,758 58,796 63,554 Equity lines 35 7,482 7,517 80 10,182 10,262 Consumer 41 1,319 1,360 48 1,924 1,972 Total acquired loans $ 5,440 $ 60,911 $ 66,351 $ 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) | Nine Months Ended September 30, (Dollars in thousands) 2021 2020 Accretable yield, balance at beginning of period $ 4,048 $ 4,721 Acquisition of Peoples — 3,372 Accretion (1,901) (2,172) Reclassification of nonaccretable difference due to improvement in expected cash flows 713 440 Other changes, net 477 (1,492) Accretable yield, balance at end of period $ 3,337 $ 4,869 |
Schedule of loans on nonaccrual status | September 30, December 31, (Dollars in thousands) 2021 2020 Real estate – residential mortgage $ 317 $ 276 Commercial, financial and agricultural: Commercial business lending 2,235 2,428 Equity lines 185 191 Consumer 4 107 Consumer finance 198 402 Total loans on nonaccrual status $ 2,939 $ 3,404 |
Schedule of past due status of loans | The past due status of loans as of September 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 $ 768 $ 251 $ 301 $ 1,320 $ 854 $ 212,992 $ 215,166 $ — Real estate – construction: Construction lending — — — — — 36,159 36,159 — Consumer lot lending — — — — — 17,686 17,686 — Commercial, financial and agricultural: Commercial real estate lending 43 — — 43 4,510 495,772 500,325 — Land acquisition and development lending — — — — — 37,242 37,242 — Builder line lending — — — — — 29,748 29,748 — Commercial business lending — — — — — 154,509 154,509 — Equity lines — 50 72 122 35 42,724 42,881 72 Consumer 6 — — 6 41 8,118 8,165 — Consumer finance 5,694 801 198 6,693 — 342,437 349,130 — Total $ 6,511 $ 1,102 $ 571 $ 8,184 $ 5,440 $ 1,377,387 $ 1,391,011 $ 72 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 $2.44 million and 90+ days past due of $499,000. 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 $2.70 million, and the related allowance at September 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 $ 1,550 $ 402 $ 1,042 $ 68 $ 1,566 $ 47 Commercial, financial and agricultural: Commercial real estate lending 1,391 — 1,393 86 1,394 54 Commercial business lending 2,318 — 2,235 263 2,320 — Equity lines 118 108 — — 115 1 Consumer — — — — — — Total $ 5,377 $ 510 $ 4,670 $ 417 $ 5,395 $ 102 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) | 9 Months Ended |
Sep. 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 nine months ended September 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 (99) (183) 422 (90) (160) 220 110 Loans charged off — — — — (128) (3,443) (3,571) Recoveries of loans previously charged off 19 — 2 1 93 3,637 3,752 Balance at September 30, 2021 $ 2,834 $ 792 $ 11,120 $ 598 $ 176 $ 23,927 $ 39,447 The following table presents the changes in the allowance for loan losses by major classification during the nine months ended September 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 (credited) to operations 337 232 3,446 (78) (37) 5,650 9,550 Loans charged off (9) — (18) — (174) (7,005) (7,206) Recoveries of loans previously charged off 79 — 3 — 135 3,422 3,639 Balance at September 30, 2020 $ 2,487 $ 913 $ 10,552 $ 655 $ 389 $ 23,860 $ 38,856 |
Schedule of balance of the allowance for loan losses and the allowance by impairment methodology | The following table presents, as of September 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 $ 68 $ — $ 349 $ — $ — $ — $ 417 Collectively evaluated for impairment 2,766 792 10,771 598 176 23,927 39,030 Acquired loans - PCI — — — — — — — Total allowance $ 2,834 $ 792 $ 11,120 $ 598 $ 176 $ 23,927 $ 39,447 Loans: Individually evaluated for impairment $ 1,444 $ — $ 3,628 $ 108 $ — $ — $ 5,180 Collectively evaluated for impairment 212,868 53,845 713,686 42,738 8,124 349,130 1,380,391 Acquired loans - PCI 854 — 4,510 35 41 — 5,440 Total loans $ 215,166 $ 53,845 $ 721,824 $ 42,881 $ 8,165 $ 349,130 $ 1,391,011 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 September 30, 2021 were as follows: Special Substandard (Dollars in thousands) Pass Mention Substandard Nonaccrual Total 1 Real estate – residential mortgage $ 213,523 $ 873 $ 453 $ 317 $ 215,166 Real estate – construction: Construction lending 36,159 — — — 36,159 Consumer lot lending 17,686 — — — 17,686 Commercial, financial and agricultural: Commercial real estate lending 477,246 15,484 7,595 — 500,325 Land acquisition and development lending 37,242 — — — 37,242 Builder line lending 29,748 — — — 29,748 Commercial business lending 150,974 1,300 — 2,235 154,509 Equity lines 42,475 137 84 185 42,881 Consumer 8,161 — — 4 8,165 $ 1,013,214 $ 17,794 $ 8,132 $ 2,741 $ 1,041,881 1 At September 30, 2021, the Corporation did not have any loans classified as Doubtful or Loss. Non- (Dollars in thousands) Performing Performing Total Consumer finance $ 348,932 $ 198 $ 349,130 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) | 9 Months Ended |
Sep. 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 September 30, 2020 $ 14,468 $ 10,723 $ 25,191 |
Schedule of gross carrying amounts and accumulated amortization of other intangible assets | September 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 $ (287) $ 1,711 $ (171) Other amortizable intangibles 1,405 (774) 1,405 (654) Total $ 3,116 $ (1,061) $ 3,116 $ (825) |
Equity, Other Comprehensive I_2
Equity, Other Comprehensive Income and Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Equity, Other Comprehensive Income and Earnings Per Share | |
Schedule of the components of accumulated other comprehensive loss, net of deferred taxes | September 30, December 31, (Dollars in thousands) 2021 2020 Net unrealized gains on securities $ 1,921 $ 4,397 Net unrecognized losses on cash flow hedges (687) (1,367) Net unrecognized losses on defined benefit plan (4,881) (4,985) Total accumulated other comprehensive loss, net $ (3,647) $ (1,955) |
Schedule of components earnings per share calculations | Three Months Ended September 30, (Dollars in thousands) 2021 2020 Net income attributable to C&F Financial Corporation $ 7,674 $ 6,793 Weighted average shares outstanding — 3,550,001 3,648,515 Nine Months Ended September 30, (Dollars in thousands) 2021 2020 Net income attributable to C&F Financial Corporation $ 22,743 $ 14,117 Weighted average shares outstanding — 3,626,083 3,646,951 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Employee Benefit Plans | |
Schedule of net periodic benefit costs | Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2021 2020 2021 2020 Components of net periodic benefit cost: Service cost, included in salaries and employee benefits $ 493 $ 401 $ 1,478 $ 1,202 Other components of net periodic benefit cost: Interest cost 114 138 343 413 Expected return on plan assets (433) (374) (1,300) (1,119) Amortization of prior service credit (17) (17) (51) (51) Recognized net actuarial losses 61 49 182 148 Other components of net periodic benefit cost, included in other noninterest income (275) (204) (826) (609) Net periodic benefit cost $ 218 $ 197 $ 652 $ 593 |
Fair Value of Assets and Liab_2
Fair Value of Assets and Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value of Assets and Liabilities | |
Schedule of balances of financial assets and liabilities measured at fair value on a recurring basis | September 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 $ — $ 62,572 $ — $ 62,572 Mortgage-backed securities — 186,120 — 186,120 Obligations of states and political subdivisions — 96,305 — 96,305 Corporate and other debt securities — 18,416 — 18,416 Total securities available for sale — 363,413 — 363,413 Loans held for sale — 116,789 — 116,789 Derivatives IRLC — 2,875 — 2,875 Interest rate swaps on loans — 4,961 — 4,961 Forward sales of TBA securities — 45 — 45 Total assets $ — $ 488,083 $ — $ 488,083 Liabilities: Derivatives Interest rate swaps on loans $ — $ 4,961 $ — $ 4,961 Cash flow hedges — 960 — 960 Total liabilities $ — $ 5,921 $ — $ 5,921 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 | September 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 September 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 September 30, 2021 Classified as Total Fair (Dollars in thousands) Value Level 1 Level 2 Level 3 Value Financial assets: Cash and short-term investments $ 204,475 $ 201,495 $ 2,479 $ — $ 203,974 Securities available for sale 363,413 — 363,413 — 363,413 Loans, net 1,351,564 — — 1,368,093 1,368,093 Loans held for sale 116,789 — 116,789 — 116,789 Derivatives IRLC 2,875 — 2,875 — 2,875 Interest rate swaps on loans 4,961 — 4,961 — 4,961 Forward sales of TBA securities 45 — 45 — 45 Bank-owned life insurance 20,382 — 20,382 — 20,382 Accrued interest receivable 7,125 7,125 — — 7,125 Financial liabilities: Demand and savings deposits 1,411,980 1,411,980 — — 1,411,980 Time deposits 441,105 — 444,446 — 444,446 Borrowings 86,394 — 91,484 — 91,484 Derivatives Cash flow hedges 960 — 960 — 960 Interest rate swaps on loans 4,961 — 4,961 — 4,961 Accrued interest payable 581 581 — — 581 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) | 9 Months Ended |
Sep. 30, 2021 | |
Business Segments | |
Schedule of segment reporting information, by segment | Three Months Ended September 30, 2021 Community Mortgage Consumer (Dollars in thousands) Banking Banking Finance Other Eliminations Consolidated Interest income $ 15,924 $ 863 $ 9,388 $ — $ (2,571) $ 23,604 Interest expense 1,301 240 2,424 589 (2,568) 1,986 Net interest income 14,623 623 6,964 (589) (3) 21,618 Gain on sales of loans — 5,691 — — (31) 5,660 Other noninterest income 4,202 2,266 45 (115) (16) 6,382 Net revenue 18,825 8,580 7,009 (704) (50) 33,660 Provision for loan losses — 30 400 — — 430 Noninterest expense 13,827 5,643 3,580 126 — 23,176 Income (loss) before taxes 4,998 2,907 3,029 (830) (50) 10,054 Income tax expense (benefit) 832 799 835 (229) (10) 2,227 Net income (loss) $ 4,166 $ 2,108 $ 2,194 $ (601) $ (40) $ 7,827 Other data: Capital expenditures $ 234 $ 55 $ 644 $ — $ — $ 933 Depreciation and amortization $ 1,015 $ 61 $ 112 $ — $ — $ 1,188 Three Months Ended September 30, 2020 Community Mortgage Consumer (Dollars in thousands) Banking Banking Finance Other Eliminations Consolidated Interest income $ 15,242 $ 1,503 $ 9,628 $ — $ (2,551) $ 23,822 Interest expense 2,547 449 2,191 342 (2,552) 2,977 Net interest income 12,695 1,054 7,437 (342) 1 20,845 Gain on sales of loans — 9,755 — — (49) 9,706 Other noninterest income 3,526 2,915 93 701 (3) 7,232 Net revenue 16,221 13,724 7,530 359 (51) 37,783 Provision for loan losses 1,500 — 1,800 — — 3,300 Noninterest expense 13,260 7,634 3,530 907 — 25,331 Income (loss) before taxes 1,461 6,090 2,200 (548) (51) 9,152 Income tax expense (benefit) 149 1,640 599 (154) — 2,234 Net income (loss) $ 1,312 $ 4,450 $ 1,601 $ (394) $ (51) $ 6,918 Other data: Capital expenditures $ 3,234 $ 14 $ 954 $ — $ — $ 4,202 Depreciation and amortization $ 958 $ 71 $ 42 $ — $ — $ 1,071 Nine Months Ended September 30, 2021 Community Mortgage Consumer (Dollars in thousands) Banking Banking Finance Other Eliminations Consolidated Interest income $ 47,035 $ 3,011 $ 28,058 $ — $ (7,558) $ 70,546 Interest expense 4,481 925 6,926 1,759 (7,567) 6,524 Net interest income 42,554 2,086 21,132 (1,759) 9 64,022 Gain on sales of loans — 18,753 — — (88) 18,665 Other noninterest income 12,022 7,298 231 1,341 (59) 20,833 Net revenue 54,576 28,137 21,363 (418) (138) 103,520 Provision for loan losses (200) 90 220 — — 110 Noninterest expense 41,631 18,838 10,711 2,198 — 73,378 Income (loss) before taxes 13,145 9,209 10,432 (2,616) (138) 30,032 Income tax expense (benefit) 2,261 2,588 2,836 (706) (29) 6,950 Net income (loss) $ 10,884 $ 6,621 $ 7,596 $ (1,910) $ (109) $ 23,082 Other data: Capital expenditures $ 584 $ 118 $ 3,675 $ — $ — $ 4,377 Depreciation and amortization $ 3,115 $ 193 $ 270 $ — $ — $ 3,578 Nine Months Ended September 30, 2020 Community Mortgage Consumer (Dollars in thousands) Banking Banking Finance Other Eliminations Consolidated Interest income $ 46,051 $ 3,261 $ 29,418 $ — $ (6,546) $ 72,184 Interest expense 8,409 1,034 6,567 1,019 (6,547) 10,482 Net interest income 37,642 2,227 22,851 (1,019) 1 61,702 Gain on sales of loans — 18,036 — — (49) 17,987 Other noninterest income 9,829 6,913 290 498 (3) 17,527 Net revenue 47,471 27,176 23,141 (521) (51) 97,216 Provision for loan losses 3,900 — 5,650 — — 9,550 Noninterest expense 41,644 15,713 10,396 1,455 — 69,208 Income (loss) before taxes 1,927 11,463 7,095 (1,976) (51) 18,458 Income tax expense (benefit) (336) 3,149 1,926 (581) — 4,158 Net income (loss) $ 2,263 $ 8,314 $ 5,169 $ (1,395) $ (51) $ 14,300 Other data: Capital expenditures $ 5,554 $ 340 $ 1,761 $ — $ — $ 7,655 Depreciation and amortization $ 2,679 $ 216 $ 133 $ — $ — $ 3,028 Community Mortgage Consumer (Dollars in thousands) Banking Banking Finance Other Eliminations Consolidated Total assets at September 30, 2021 $ 2,061,796 $ 139,406 $ 353,319 $ 41,813 $ (386,926) $ 2,209,408 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) | 9 Months Ended |
Sep. 30, 2021 | |
Derivative Financial Instruments | |
Schedule of key elements of derivative instruments other than forward sales of mortgage loans | September 30, 2021 Notional (Dollars in thousands) Amount Assets Liabilities Cash flow hedges: Interest rate swap contracts $ 25,000 $ — $ 960 Not designated as hedges: Customer-related interest rate swap contracts: Matched interest rate swaps with borrower 83,819 4,794 167 Matched interest rate swaps with counterparty 83,819 167 4,794 Mortgage banking contracts: IRLCs 148,144 2,875 — Forward sales of TBA securities 16,500 45 — 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) | 9 Months Ended |
Sep. 30, 2021 | |
Other Noninterest Expenses | |
Schedule of other noninterest expense | Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2021 2020 2021 2020 Data processing fees $ 2,791 $ 2,607 $ 8,519 $ 8,142 Mortgage banking loan processing expenses 697 916 2,458 2,180 Professional fees 675 706 2,159 2,424 Telecommunication expenses 390 311 1,151 1,092 Marketing and advertising expenses 374 369 1,178 1,207 Travel and educational expenses 263 430 620 974 Other real estate (gain)/loss and expenses, net 2 76 (400) 84 All other noninterest expenses 1,838 2,018 5,670 5,836 Total other noninterest expenses $ 7,030 $ 7,433 $ 21,355 $ 21,939 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Nature of Operations and Business Combination (Details) $ in Thousands | Jan. 01, 2020USD ($) | Sep. 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 | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Summary of Significant Accounting Policies | |||
Effective income tax rate (as a percent) | 23.10% | 22.50% | |
Income tax benefits from a change in tax law | $ 23,000 | $ 326,000 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Share-Based Compensation (Details) - Restricted Stock - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Share-based compensation | ||||
Compensation expense before tax | $ 386,000 | $ 311,000 | $ 1,210,000 | $ 1,010,000 |
Compensation expense after tax | 271,000 | $ 219,000 | 863,000 | $ 654,000 |
Unrecognized compensation expense | $ 3,180,000 | $ 3,180,000 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Restricted Stock Activity (Details) - $ / shares | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Shares | ||
Unvested, beginning of period (in shares) | 155,945 | |
Unvested, end of period (in shares) | 149,762 | |
Restricted Stock | ||
Shares | ||
Unvested, beginning of period (in shares) | 155,945 | 142,020 |
Granted (in shares) | 20,462 | 14,770 |
Vested (in shares) | (21,195) | (16,555) |
Forfeited (in shares) | (5,450) | (3,530) |
Unvested, end of period (in shares) | 149,762 | 136,705 |
Weighted-Average Grant Date Fair Value | ||
Nonvested, beginning of period (in dollars per share) | $ 48.52 | $ 48.88 |
Granted (in dollars per share) | 44.13 | 53.03 |
Vested (in dollars per share) | 44.18 | 40.20 |
Forfeited (in dollars per share) | 45.89 | 52.86 |
Nonvested, end of period (in dollars per share) | $ 48.63 | $ 50.32 |
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 | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 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 | Sep. 30, 2021 | Dec. 31, 2020 |
Business Combination | |||
Outstanding principal balance | $ 72,580,000 | $ 101,803,000 | |
Loans, allowance for loan losses | 39,447,000 | 39,156,000 | |
Maximum | |||
Information about PCI loans acquired | |||
Maturity of deposits | 5 years | ||
PCI Loans | |||
Business Combination | |||
Outstanding principal balance | $ 10,517,000 | $ 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) | ||
Purchased 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 | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Business Combination | ||||||
Merger related costs | $ 0 | $ 0 | $ 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 | $ 0 | 1,400 | ||||
Merger related costs, after income taxes | $ 1,130 |
Securities - Available for sale
Securities - Available for sale Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 360,981 | $ 280,824 |
Gross Unrealized Gains | 4,116 | 5,769 |
Gross Unrealized Losses | (1,684) | (204) |
Fair Value | 363,413 | 286,389 |
U.S. government agencies and corporations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 63,271 | 48,171 |
Gross Unrealized Gains | 73 | 121 |
Gross Unrealized Losses | (772) | (10) |
Fair Value | 62,572 | 48,282 |
Mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 184,548 | 120,664 |
Gross Unrealized Gains | 2,105 | 3,165 |
Gross Unrealized Losses | (533) | (115) |
Fair Value | 186,120 | 123,714 |
Obligations of states and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 94,872 | 100,405 |
Gross Unrealized Gains | 1,748 | 2,436 |
Gross Unrealized Losses | (315) | (36) |
Fair Value | 96,305 | 102,805 |
Corporate and other debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 18,290 | 11,584 |
Gross Unrealized Gains | 190 | 47 |
Gross Unrealized Losses | (64) | (43) |
Fair Value | $ 18,416 | $ 11,588 |
Securities - Maturities and Rea
Securities - Maturities and Realized Gains and Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Amortized Cost | |||||
Due in one year or less | $ 62,145 | $ 62,145 | |||
Due after one year through five years | 200,714 | 200,714 | |||
Due after five years through ten years | 89,131 | 89,131 | |||
Due after ten years | 8,991 | 8,991 | |||
Amortized Cost | 360,981 | 360,981 | $ 280,824 | ||
Fair Value | |||||
Due in one year or less | 62,010 | 62,010 | |||
Due after one year through five years | 203,445 | 203,445 | |||
Due after five years through ten years | 89,136 | 89,136 | |||
Due after ten years | 8,822 | 8,822 | |||
Fair Value | 363,413 | 363,413 | $ 286,389 | ||
Realized Gains and Losses | |||||
Proceeds related to sales of securities | 0 | $ 0 | 2,300 | $ 5,990 | |
Gross realized gains | 3 | 4 | 41 | 11 | |
Net realized gains | 3 | 4 | 41 | 11 | |
Proceeds from sales, maturities, calls and paydowns of securities | $ 29,798 | $ 30,288 | $ 85,293 | $ 101,068 |
Securities - Pledged as Collate
Securities - Pledged as Collateral (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Available for sale securities | ||
Amortized Cost | $ 360,981 | $ 280,824 |
Fair Value | 363,413 | 286,389 |
Securities Pledged as Collateral | ||
Available for sale securities | ||
Amortized Cost | 157,620 | 146,660 |
Fair Value | $ 159,860 | $ 150,130 |
Securities - Unrealized Loss Po
Securities - Unrealized Loss Positions (Details) | 9 Months Ended | |
Sep. 30, 2021USD ($)security | Dec. 31, 2020USD ($) | |
Fair value | ||
Less Than 12 Months, Fair Value | $ 170,116,000 | $ 37,791,000 |
12 Months or More, Fair Value | 7,065,000 | |
Total Fair Value | 177,181,000 | 37,791,000 |
Unrealized Loss | ||
Less Than 12 Months, Unrealized Loss | 1,578,000 | 204,000 |
12 Months or More, Unrealized Loss | 106,000 | |
Total Unrealized Loss | $ 1,684,000 | 204,000 |
Other information | ||
Number of positions considered temporarily impaired | security | 133 | |
Number of position significant relative to carrying value | 0 | |
Debt securities considered temporarily impaired | $ 177,181,000 | 37,791,000 |
Other than temporary impairment | 0 | |
U.S. government agencies and corporations | ||
Fair value | ||
Less Than 12 Months, Fair Value | 46,809,000 | 12,719,000 |
12 Months or More, Fair Value | 1,451,000 | |
Total Fair Value | 48,260,000 | 12,719,000 |
Unrealized Loss | ||
Less Than 12 Months, Unrealized Loss | 724,000 | 10,000 |
12 Months or More, Unrealized Loss | 48,000 | |
Total Unrealized Loss | 772,000 | 10,000 |
Other information | ||
Debt securities considered temporarily impaired | 48,260,000 | 12,719,000 |
Mortgage-backed securities | ||
Fair value | ||
Less Than 12 Months, Fair Value | 94,098,000 | 15,691,000 |
12 Months or More, Fair Value | 4,341,000 | |
Total Fair Value | 98,439,000 | 15,691,000 |
Unrealized Loss | ||
Less Than 12 Months, Unrealized Loss | 511,000 | 115,000 |
12 Months or More, Unrealized Loss | 22,000 | |
Total Unrealized Loss | 533,000 | 115,000 |
Other information | ||
Debt securities considered temporarily impaired | 98,439,000 | 15,691,000 |
Obligations of states and political subdivisions | ||
Fair value | ||
Less Than 12 Months, Fair Value | 20,132,000 | 5,110,000 |
12 Months or More, Fair Value | 1,273,000 | |
Total Fair Value | 21,405,000 | 5,110,000 |
Unrealized Loss | ||
Less Than 12 Months, Unrealized Loss | 279,000 | 36,000 |
12 Months or More, Unrealized Loss | 36,000 | |
Total Unrealized Loss | 315,000 | 36,000 |
Other information | ||
Debt securities considered temporarily impaired | 21,405,000 | 5,110,000 |
Corporate and other debt securities | ||
Fair value | ||
Less Than 12 Months, Fair Value | 9,077,000 | 4,271,000 |
Total Fair Value | 9,077,000 | 4,271,000 |
Unrealized Loss | ||
Less Than 12 Months, Unrealized Loss | 64,000 | 43,000 |
Total Unrealized Loss | 64,000 | 43,000 |
Other information | ||
Debt securities considered temporarily impaired | $ 9,077,000 | $ 4,271,000 |
Securities - Restricted Stocks
Securities - Restricted Stocks and others (Details) - USD ($) | 9 Months Ended | |
Sep. 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 | Sep. 30, 2021 | Dec. 31, 2020 |
Loans | ||
Loans | $ 1,391,011 | $ 1,352,406 |
Less allowance for loan losses | (39,447) | (39,156) |
Loans, net | 1,351,564 | 1,313,250 |
Real estate - residential mortgage | ||
Loans | ||
Loans | 215,166 | 218,298 |
Real estate - construction | ||
Loans | ||
Loans | 53,845 | 62,147 |
Commercial, financial and agricultural | ||
Loans | ||
Loans | 721,824 | 700,215 |
Equity lines | ||
Loans | ||
Loans | 42,881 | 48,466 |
Consumer | ||
Loans | ||
Loans | 8,165 | 11,028 |
Amount included related to demand deposit overdrafts | 232 | 284 |
Consumer finance | ||
Loans | ||
Loans | $ 349,130 | $ 312,252 |
Loans - Loans Acquired (Details
Loans - Loans Acquired (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Loans | ||
Outstanding principal balance | $ 72,580 | $ 101,803 |
Carrying amount | ||
Total acquired loans | 66,351 | 93,455 |
Real estate - residential mortgage | ||
Carrying amount | ||
Total acquired loans | 11,979 | 16,590 |
Real estate - construction | ||
Carrying amount | ||
Total acquired loans | 1,246 | 1,077 |
Commercial, financial and agricultural | ||
Carrying amount | ||
Total acquired loans | 44,249 | 63,554 |
Equity lines | ||
Carrying amount | ||
Total acquired loans | 7,517 | 10,262 |
Consumer | ||
Carrying amount | ||
Total acquired loans | 1,360 | 1,972 |
PCI Loans | ||
Loans | ||
Outstanding principal balance | 10,517 | 12,760 |
Carrying amount | ||
Total acquired loans | 5,440 | 6,359 |
PCI Loans | Real estate - residential mortgage | ||
Carrying amount | ||
Total acquired loans | 854 | 1,473 |
PCI Loans | Commercial, financial and agricultural | ||
Carrying amount | ||
Total acquired loans | 4,510 | 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 | 62,063 | 89,043 |
Carrying amount | ||
Total acquired loans | 60,911 | 87,096 |
Purchased Performing Loans | Real estate - residential mortgage | ||
Carrying amount | ||
Total acquired loans | 11,125 | 15,117 |
Purchased Performing Loans | Real estate - construction | ||
Carrying amount | ||
Total acquired loans | 1,246 | 1,077 |
Purchased Performing Loans | Commercial, financial and agricultural | ||
Carrying amount | ||
Total acquired loans | 39,739 | 58,796 |
Purchased Performing Loans | Equity lines | ||
Carrying amount | ||
Total acquired loans | 7,482 | 10,182 |
Purchased Performing Loans | Consumer | ||
Carrying amount | ||
Total acquired loans | $ 1,319 | $ 1,924 |
Loans - Change in Accretable Yi
Loans - Change in Accretable Yield (Details) - PCI Loans - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Change in the accretable yield | ||
Accretable yield, balance at beginning of period | $ 4,048 | $ 4,721 |
Acquisition of Peoples | 3,372 | |
Accretion | (1,901) | (2,172) |
Reclassification of nonaccreatable difference due to improvement in expected cash flows | 713 | 440 |
Other changes, net | 477 | (1,492) |
Accretable yield, balance at end of period | $ 3,337 | $ 4,869 |
Loans - Loans on Nonaccrual Sta
Loans - Loans on Nonaccrual Status (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Loans on nonaccrual status | ||
Loans on nonaccrual status | $ 2,939 | $ 3,404 |
Real estate - residential mortgage | ||
Loans on nonaccrual status | ||
Loans on nonaccrual status | 317 | 276 |
Commercial, financial and agricultural | Commercial business lending | ||
Loans on nonaccrual status | ||
Loans on nonaccrual status | 2,235 | 2,428 |
Equity lines | ||
Loans on nonaccrual status | ||
Loans on nonaccrual status | 185 | 191 |
Consumer | ||
Loans on nonaccrual status | ||
Loans on nonaccrual status | 4 | 107 |
Consumer finance | ||
Loans on nonaccrual status | ||
Loans on nonaccrual status | $ 198 | $ 402 |
Loans - Past Due Status (Detail
Loans - Past Due Status (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Loans on nonaccrual status | ||
Total Past Due | $ 8,184 | $ 11,126 |
Current | 1,377,387 | 1,334,921 |
Total Loans | 1,391,011 | 1,352,406 |
90+ days past due and accruing | 72 | 145 |
Additional disclosure for nonaccrual loans | ||
Current, nonaccrual status | 2,440 | 2,860 |
Nonaccrual loans, 30-59 days past due | 115 | |
Nonaccrual loans, 90+ days past due | 499 | 433 |
PCI | ||
Loans on nonaccrual status | ||
PCI | 5,440 | 6,359 |
30-59 Days Past Due | ||
Loans on nonaccrual status | ||
Total Past Due | 6,511 | 9,427 |
60-89 Days Past Due | ||
Loans on nonaccrual status | ||
Total Past Due | 1,102 | 1,121 |
90+ Days Past Due | ||
Loans on nonaccrual status | ||
Total Past Due | 571 | 578 |
Real estate - residential mortgage | ||
Loans on nonaccrual status | ||
Total Past Due | 1,320 | 1,430 |
Current | 212,992 | 215,395 |
Total Loans | 215,166 | 218,298 |
90+ days past due and accruing | 145 | |
Real estate - residential mortgage | PCI | ||
Loans on nonaccrual status | ||
PCI | 854 | 1,473 |
Real estate - residential mortgage | 30-59 Days Past Due | ||
Loans on nonaccrual status | ||
Total Past Due | 768 | 1,100 |
Real estate - residential mortgage | 60-89 Days Past Due | ||
Loans on nonaccrual status | ||
Total Past Due | 251 | 154 |
Real estate - residential mortgage | 90+ Days Past Due | ||
Loans on nonaccrual status | ||
Total Past Due | 301 | 176 |
Real estate - construction | ||
Loans on nonaccrual status | ||
Total Loans | 53,845 | 62,147 |
Commercial, financial and agricultural | ||
Loans on nonaccrual status | ||
Total Loans | 721,824 | 700,215 |
Equity lines | ||
Loans on nonaccrual status | ||
Total Past Due | 122 | 52 |
Current | 42,724 | 48,334 |
Total Loans | 42,881 | 48,466 |
90+ days past due and accruing | 72 | |
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 | 50 | |
Equity lines | 90+ Days Past Due | ||
Loans on nonaccrual status | ||
Total Past Due | 72 | |
Consumer | ||
Loans on nonaccrual status | ||
Total Past Due | 6 | 2 |
Current | 8,118 | 10,978 |
Total Loans | 8,165 | 11,028 |
Consumer | PCI | ||
Loans on nonaccrual status | ||
PCI | 41 | 48 |
Consumer | 30-59 Days Past Due | ||
Loans on nonaccrual status | ||
Total Past Due | 6 | 2 |
Consumer finance | ||
Loans on nonaccrual status | ||
Total Past Due | 6,693 | 9,618 |
Current | 342,437 | 302,634 |
Total Loans | 349,130 | 312,252 |
Consumer finance | 30-59 Days Past Due | ||
Loans on nonaccrual status | ||
Total Past Due | 5,694 | 8,249 |
Consumer finance | 60-89 Days Past Due | ||
Loans on nonaccrual status | ||
Total Past Due | 801 | 967 |
Consumer finance | 90+ Days Past Due | ||
Loans on nonaccrual status | ||
Total Past Due | 198 | 402 |
Construction lending | Real estate - construction | ||
Loans on nonaccrual status | ||
Current | 36,159 | 49,659 |
Total Loans | 36,159 | 49,659 |
Consumer lot lending | Real estate - construction | ||
Loans on nonaccrual status | ||
Current | 17,686 | 12,488 |
Total Loans | 17,686 | 12,488 |
Commercial real estate lending | Commercial, financial and agricultural | ||
Loans on nonaccrual status | ||
Total Past Due | 43 | |
Current | 495,772 | 437,145 |
Total Loans | 500,325 | 441,903 |
Commercial real estate lending | Commercial, financial and agricultural | PCI | ||
Loans on nonaccrual status | ||
PCI | 4,510 | 4,758 |
Commercial real estate lending | Commercial, financial and agricultural | 30-59 Days Past Due | ||
Loans on nonaccrual status | ||
Total Past Due | 43 | |
Land acquisition and development lending | Commercial, financial and agricultural | ||
Loans on nonaccrual status | ||
Current | 37,242 | 37,724 |
Total Loans | 37,242 | 37,724 |
Builder line lending | Commercial, financial and agricultural | ||
Loans on nonaccrual status | ||
Current | 29,748 | 18,194 |
Total Loans | 29,748 | 18,194 |
Commercial business lending | Commercial, financial and agricultural | ||
Loans on nonaccrual status | ||
Total Past Due | 24 | |
Current | 154,509 | 202,370 |
Total Loans | $ 154,509 | 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 | 9 Months Ended | ||
Sep. 30, 2021USD ($)loan | Sep. 30, 2020USD ($)loan | Sep. 30, 2021USD ($)loan | Sep. 30, 2020USD ($)loan | |
Loan modifications classified as troubled debt restructurings | ||||
Number of Loans | loan | 0 | 3 | ||
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 |
Real estate - residential mortgage | ||||
Loan modifications classified as troubled debt restructurings | ||||
Number of Loans | loan | 2 | 1 | 2 | |
Recorded Investment | $ 176,000 | $ 4,000 | $ 176,000 | |
Equity lines | ||||
Loan modifications classified as troubled debt restructurings | ||||
Recorded Investment | $ 84,000 |
Loans - Impaired Loans (Details
Loans - Impaired Loans (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Impaired loans | ||
Impaired loans, troubled debt restructurings | $ 2,700 | $ 3,580 |
Impaired loans, Unpaid Principal Balance | 5,377 | 6,420 |
Impaired loans, Recorded Investment in Loans without Specific Reserve | 510 | 1,042 |
Impaired loans, Recorded Investment in Loans with Specific Reserve | 4,670 | 5,236,000 |
Impaired loans, Related Allowance | 417 | 879 |
Impaired loans, Average Balance | 5,395 | 6,603 |
Impaired loans, Interest Income Recognized | 102 | 183 |
Real estate - residential mortgage | ||
Impaired loans | ||
Impaired loans, Unpaid Principal Balance | 1,550 | 2,326 |
Impaired loans, Recorded Investment in Loans without Specific Reserve | 402 | 931 |
Impaired loans, Recorded Investment in Loans with Specific Reserve | 1,042 | 1,279,000 |
Impaired loans, Related Allowance | 68 | 77 |
Impaired loans, Average Balance | 1,566 | 2,353 |
Impaired loans, Interest Income Recognized | 47 | 105 |
Commercial, financial and agricultural | Commercial real estate lending | ||
Impaired loans | ||
Impaired loans, Unpaid Principal Balance | 1,391 | 1,397 |
Impaired loans, Recorded Investment in Loans with Specific Reserve | 1,393 | 1,397,000 |
Impaired loans, Related Allowance | 86 | 89 |
Impaired loans, Average Balance | 1,394 | 1,404 |
Impaired loans, Interest Income Recognized | 54 | 73 |
Commercial, financial and agricultural | Commercial business lending | ||
Impaired loans | ||
Impaired loans, Unpaid Principal Balance | 2,318 | 2,430 |
Impaired loans, Recorded Investment in Loans with Specific Reserve | 2,235 | 2,428,000 |
Impaired loans, Related Allowance | 263 | 585 |
Impaired loans, Average Balance | 2,320 | 2,573 |
Equity lines | ||
Impaired loans | ||
Impaired loans, Unpaid Principal Balance | 118 | 120 |
Impaired loans, Recorded Investment in Loans without Specific Reserve | 108 | 111 |
Impaired loans, Average Balance | 115 | 119 |
Impaired loans, Interest Income Recognized | $ 1 | 2 |
Consumer | ||
Impaired loans | ||
Impaired loans, Unpaid Principal Balance | 147 | |
Impaired loans, Recorded Investment in Loans with Specific Reserve | 132,000 | |
Impaired loans, Related Allowance | 128 | |
Impaired loans, Average Balance | 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 | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Allowance balance attributable to loans: | ||
Balance at the beginning of period | $ 39,156 | $ 32,873 |
Provision (credited) charged to operations | 110 | 9,550 |
Loans charged off | (3,571) | (7,206) |
Recoveries of loans previously charged off | 3,752 | 3,639 |
Balance at the end of period | 39,447 | 38,856 |
Real estate - residential mortgage | ||
Allowance balance attributable to loans: | ||
Balance at the beginning of period | 2,914 | 2,080 |
Provision (credited) charged to operations | (99) | 337 |
Loans charged off | (9) | |
Recoveries of loans previously charged off | 19 | 79 |
Balance at the end of period | 2,834 | 2,487 |
Real estate - construction | ||
Allowance balance attributable to loans: | ||
Balance at the beginning of period | 975 | 681 |
Provision (credited) charged to operations | (183) | 232 |
Balance at the end of period | 792 | 913 |
Commercial, financial and agricultural | ||
Allowance balance attributable to loans: | ||
Balance at the beginning of period | 10,696 | 7,121 |
Provision (credited) charged to operations | 422 | 3,446 |
Loans charged off | (18) | |
Recoveries of loans previously charged off | 2 | 3 |
Balance at the end of period | 11,120 | 10,552 |
Equity lines | ||
Allowance balance attributable to loans: | ||
Balance at the beginning of period | 687 | 733 |
Provision (credited) charged to operations | (90) | (78) |
Recoveries of loans previously charged off | 1 | |
Balance at the end of period | 598 | 655 |
Consumer | ||
Allowance balance attributable to loans: | ||
Balance at the beginning of period | 371 | 465 |
Provision (credited) charged to operations | (160) | (37) |
Loans charged off | (128) | (174) |
Recoveries of loans previously charged off | 93 | 135 |
Balance at the end of period | 176 | 389 |
Consumer finance | ||
Allowance balance attributable to loans: | ||
Balance at the beginning of period | 23,513 | 21,793 |
Provision (credited) charged to operations | 220 | 5,650 |
Loans charged off | (3,443) | (7,005) |
Recoveries of loans previously charged off | 3,637 | 3,422 |
Balance at the end of period | $ 23,927 | $ 23,860 |
Allowance for Loan Losses - All
Allowance for Loan Losses - Allowance and Loans by Impairment Methodology (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 |
Allowance balance attributable to loans: | ||||
Individually evaluated for impairment | $ 417 | $ 879 | ||
Collectively evaluated for impairment | 39,030 | 38,277 | ||
Total allowance | 39,447 | 39,156 | $ 38,856 | $ 32,873 |
Loans: | ||||
Individually evaluated for impairment | 5,180 | 6,278 | ||
Collectively evaluated for impairment | 1,380,391 | 1,339,769 | ||
Acquired loans - PCI | 5,440 | 6,359 | ||
Total loans | 1,391,011 | 1,352,406 | ||
Real estate - residential mortgage | ||||
Allowance balance attributable to loans: | ||||
Individually evaluated for impairment | 68 | 77 | ||
Collectively evaluated for impairment | 2,766 | 2,837 | ||
Total allowance | 2,834 | 2,914 | 2,487 | 2,080 |
Loans: | ||||
Individually evaluated for impairment | 1,444 | 2,210 | ||
Collectively evaluated for impairment | 212,868 | 214,615 | ||
Acquired loans - PCI | 854 | 1,473 | ||
Total loans | 215,166 | 218,298 | ||
Real estate - construction | ||||
Allowance balance attributable to loans: | ||||
Collectively evaluated for impairment | 792 | 975 | ||
Total allowance | 792 | 975 | 913 | 681 |
Loans: | ||||
Collectively evaluated for impairment | 53,845 | 62,147 | ||
Total loans | 53,845 | 62,147 | ||
Commercial, financial and agricultural | ||||
Allowance balance attributable to loans: | ||||
Individually evaluated for impairment | 349 | 674 | ||
Collectively evaluated for impairment | 10,771 | 10,022 | ||
Total allowance | 11,120 | 10,696 | 10,552 | 7,121 |
Loans: | ||||
Individually evaluated for impairment | 3,628 | 3,825 | ||
Collectively evaluated for impairment | 713,686 | 691,632 | ||
Acquired loans - PCI | 4,510 | 4,758 | ||
Total loans | 721,824 | 700,215 | ||
Equity lines | ||||
Allowance balance attributable to loans: | ||||
Collectively evaluated for impairment | 598 | 687 | ||
Total allowance | 598 | 687 | 655 | 733 |
Loans: | ||||
Individually evaluated for impairment | 108 | 111 | ||
Collectively evaluated for impairment | 42,738 | 48,275 | ||
Acquired loans - PCI | 35 | 80 | ||
Total loans | 42,881 | 48,466 | ||
Consumer | ||||
Allowance balance attributable to loans: | ||||
Individually evaluated for impairment | 128 | |||
Collectively evaluated for impairment | 176 | 243 | ||
Total allowance | 176 | 371 | 389 | 465 |
Loans: | ||||
Individually evaluated for impairment | 132 | |||
Collectively evaluated for impairment | 8,124 | 10,848 | ||
Acquired loans - PCI | 41 | 48 | ||
Total loans | 8,165 | 11,028 | ||
Consumer finance | ||||
Allowance balance attributable to loans: | ||||
Collectively evaluated for impairment | 23,927 | 23,513 | ||
Total allowance | 23,927 | 23,513 | $ 23,860 | $ 21,793 |
Loans: | ||||
Collectively evaluated for impairment | 349,130 | 312,252 | ||
Total loans | $ 349,130 | $ 312,252 |
Allowance for Loan Losses - Cre
Allowance for Loan Losses - Credit Quality Indicators (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Allowance for loan losses | ||
Loans, excluding consumer finance | $ 1,041,881 | $ 1,040,154 |
Pass | ||
Allowance for loan losses | ||
Loans, excluding consumer finance | 1,013,214 | 1,004,998 |
Special Mention | ||
Allowance for loan losses | ||
Loans, excluding consumer finance | 17,794 | 20,526 |
Substandard | ||
Allowance for loan losses | ||
Loans, excluding consumer finance | 8,132 | 11,628 |
Substandard Nonaccrual | ||
Allowance for loan losses | ||
Loans, excluding consumer finance | 2,741 | 3,002 |
Real estate - residential mortgage | ||
Allowance for loan losses | ||
Loans, excluding consumer finance | 215,166 | 218,298 |
Real estate - residential mortgage | Pass | ||
Allowance for loan losses | ||
Loans, excluding consumer finance | 213,523 | 215,712 |
Real estate - residential mortgage | Special Mention | ||
Allowance for loan losses | ||
Loans, excluding consumer finance | 873 | 1,715 |
Real estate - residential mortgage | Substandard | ||
Allowance for loan losses | ||
Loans, excluding consumer finance | 453 | 595 |
Real estate - residential mortgage | Substandard Nonaccrual | ||
Allowance for loan losses | ||
Loans, excluding consumer finance | 317 | 276 |
Real estate - construction | Construction lending | ||
Allowance for loan losses | ||
Loans, excluding consumer finance | 36,159 | 49,659 |
Real estate - construction | Construction lending | Pass | ||
Allowance for loan losses | ||
Loans, excluding consumer finance | 36,159 | 49,659 |
Real estate - construction | Consumer lot lending | ||
Allowance for loan losses | ||
Loans, excluding consumer finance | 17,686 | 12,488 |
Real estate - construction | Consumer lot lending | Pass | ||
Allowance for loan losses | ||
Loans, excluding consumer finance | 17,686 | 12,488 |
Commercial, financial and agricultural | Commercial real estate lending | ||
Allowance for loan losses | ||
Loans, excluding consumer finance | 500,325 | 441,903 |
Commercial, financial and agricultural | Commercial real estate lending | Pass | ||
Allowance for loan losses | ||
Loans, excluding consumer finance | 477,246 | 415,506 |
Commercial, financial and agricultural | Commercial real estate lending | Special Mention | ||
Allowance for loan losses | ||
Loans, excluding consumer finance | 15,484 | 15,507 |
Commercial, financial and agricultural | Commercial real estate lending | Substandard | ||
Allowance for loan losses | ||
Loans, excluding consumer finance | 7,595 | 10,890 |
Commercial, financial and agricultural | Land acquisition and development lending | ||
Allowance for loan losses | ||
Loans, excluding consumer finance | 37,242 | 37,724 |
Commercial, financial and agricultural | Land acquisition and development lending | Pass | ||
Allowance for loan losses | ||
Loans, excluding consumer finance | 37,242 | 37,724 |
Commercial, financial and agricultural | Builder line lending | ||
Allowance for loan losses | ||
Loans, excluding consumer finance | 29,748 | 18,194 |
Commercial, financial and agricultural | Builder line lending | Pass | ||
Allowance for loan losses | ||
Loans, excluding consumer finance | 29,748 | 18,194 |
Commercial, financial and agricultural | Commercial business lending | ||
Allowance for loan losses | ||
Loans, excluding consumer finance | 154,509 | 202,394 |
Commercial, financial and agricultural | Commercial business lending | Pass | ||
Allowance for loan losses | ||
Loans, excluding consumer finance | 150,974 | 196,743 |
Commercial, financial and agricultural | Commercial business lending | Special Mention | ||
Allowance for loan losses | ||
Loans, excluding consumer finance | 1,300 | 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 | 2,235 | 2,428 |
Equity lines | ||
Allowance for loan losses | ||
Loans, excluding consumer finance | 42,881 | 48,466 |
Equity lines | Pass | ||
Allowance for loan losses | ||
Loans, excluding consumer finance | 42,475 | 48,140 |
Equity lines | Special Mention | ||
Allowance for loan losses | ||
Loans, excluding consumer finance | 137 | 132 |
Equity lines | Substandard | ||
Allowance for loan losses | ||
Loans, excluding consumer finance | 84 | 3 |
Equity lines | Substandard Nonaccrual | ||
Allowance for loan losses | ||
Loans, excluding consumer finance | 185 | 191 |
Consumer | ||
Allowance for loan losses | ||
Loans, excluding consumer finance | 8,165 | 11,028 |
Consumer | Pass | ||
Allowance for loan losses | ||
Loans, excluding consumer finance | 8,161 | 10,832 |
Consumer | Special Mention | ||
Allowance for loan losses | ||
Loans, excluding consumer finance | 48 | |
Consumer | Substandard | ||
Allowance for loan losses | ||
Loans, excluding consumer finance | 41 | |
Consumer | Substandard Nonaccrual | ||
Allowance for loan losses | ||
Loans, excluding consumer finance | $ 4 | $ 107 |
Allowance for Loan Losses - Loa
Allowance for Loan Losses - Loans by Credit Quality Indicators - Performing and Non-Performing (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Allowance for loan losses | ||
Loans | $ 1,391,011 | $ 1,352,406 |
Consumer finance | ||
Allowance for loan losses | ||
Loans | 349,130 | 312,252 |
Consumer finance | Performing | ||
Allowance for loan losses | ||
Loans | 348,932 | 311,850 |
Consumer finance | Non-Performing | ||
Allowance for loan losses | ||
Loans | $ 198 | $ 402 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Goodwill (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Goodwill and Other Intangible Assets | ||
Goodwill | $ 25,191 | $ 25,191 |
Changes in the recorded balance of goodwill | 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 | 10,766 |
Balance at the end of the period | $ 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 | Sep. 30, 2021 | Dec. 31, 2020 |
Other intangible assets | ||
Other intangible assets, net | $ 2,055 | $ 2,291 |
Gross carrying amounts and accumulated amortization | ||
Gross Carrying Amount | 3,116 | 3,116 |
Accumulated Amortization | (1,061) | (825) |
Core deposit intangible | ||
Gross carrying amounts and accumulated amortization | ||
Gross Carrying Amount | 1,711 | 1,711 |
Accumulated Amortization | (287) | (171) |
Other amortizable intangibles | ||
Gross carrying amounts and accumulated amortization | ||
Gross Carrying Amount | 1,405 | 1,405 |
Accumulated Amortization | $ (774) | $ (654) |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Amortization (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Goodwill and Other Intangible Assets | ||||
Amortization of intangible assets | $ 79,000 | $ 83,000 | $ 236,000 | $ 248,000 |
Equity, Other Comprehensive I_3
Equity, Other Comprehensive Income and Earnings Per Share - Equity and Noncontrolling Interest (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Nov. 17, 2020 | |
Shareholders' Equity | |||||
Number of shares withheld from employees to satisfy tax withholding obligations | 7,596 | 5,084 | |||
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) | 150,333 | ||||
Aggregate cost of common stock repurchased | $ 7,460,000 | $ 7,460,000 | |||
Shares repurchased (in shares) | 52,619 | 142,874 | |||
Cost of shares repurchased | $ 2,720,000 | $ 7,190,000 | |||
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 ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Equity, Other Comprehensive Income and Earnings Per Share | ||
Deferred taxes included in AOCI | $ 1,020,000 | $ 630,000 |
Net unrealized gains on securities | 1,921,000 | 4,397,000 |
Net unrecognized losses on cash flow hedges | (687,000) | (1,367,000) |
Net unrecognized losses on defined benefit plan | (4,881,000) | (4,985,000) |
Total accumulated other comprehensive loss, net | $ (3,647,000) | $ (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 | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Components of earnings per share calculations | ||||
Net income attributable to C&F Financial Corporation | $ 7,674 | $ 6,793 | $ 22,743 | $ 14,117 |
Weighted average shares outstanding-basic and diluted | 3,550,001 | 3,648,515 | 3,626,083 | 3,646,951 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Components of net periodic benefit cost | ||||
Service cost, included in salaries and employee benefits | $ 493 | $ 401 | $ 1,478 | $ 1,202 |
Other components of net periodic benefit cost: | ||||
Interest cost | 114 | 138 | 343 | 413 |
Expected return on plan assets | (433) | (374) | (1,300) | (1,119) |
Amortization of prior service credit | (17) | (17) | (51) | (51) |
Recognized net actuarial losses | 61 | 49 | 182 | 148 |
Other components of net periodic benefit cost, included in other noninterest income | (275) | (204) | (826) | (609) |
Net periodic benefit cost | $ 218 | $ 197 | $ 652 | $ 593 |
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 | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Fair Value of Assets and Liabilities | |||||
Fair value of investment in small business investment companies | $ 1,420,000 | $ 1,420,000 | $ 1,480,000 | ||
Unrealized gains or losses | $ 88,000 | $ 40,000 | $ 135,000 | $ (84,000) |
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 | Sep. 30, 2021 | Dec. 31, 2020 |
Securities available for sale | ||
Securities available for sale | $ 363,413 | $ 286,389 |
Interest rate swaps on loans | Cash flow hedges | ||
Liabilities: | ||
Derivatives | 960 | 1,882 |
Recurring | ||
Securities available for sale | ||
Securities available for sale | 363,413 | 286,389 |
Loans held for sale | 116,789 | 214,266 |
Total assets measured at fair value | 488,083 | 513,422 |
Liabilities: | ||
Derivatives | 5,921 | 10,114 |
Recurring | Cash flow hedges | ||
Liabilities: | ||
Derivatives | 960 | 1,882 |
Recurring | IRLC | ||
Securities available for sale | ||
Derivatives | 2,875 | 4,582 |
Recurring | Interest rate swaps on loans | ||
Securities available for sale | ||
Derivatives | 4,961 | 8,185 |
Liabilities: | ||
Derivatives | 4,961 | 8,185 |
Recurring | Forward sales of TBA securities | ||
Securities available for sale | ||
Derivatives | 45 | |
Liabilities: | ||
Derivatives | 47 | |
Level 2 | Recurring | ||
Securities available for sale | ||
Securities available for sale | 363,413 | 286,389 |
Loans held for sale | 116,789 | 214,266 |
Total assets measured at fair value | 488,083 | 513,422 |
Liabilities: | ||
Derivatives | 5,921 | 10,114 |
Level 2 | Recurring | Cash flow hedges | ||
Liabilities: | ||
Derivatives | 960 | 1,882 |
Level 2 | Recurring | IRLC | ||
Securities available for sale | ||
Derivatives | 2,875 | 4,582 |
Level 2 | Recurring | Interest rate swaps on loans | ||
Securities available for sale | ||
Derivatives | 4,961 | 8,185 |
Liabilities: | ||
Derivatives | 4,961 | 8,185 |
Level 2 | Recurring | Forward sales of TBA securities | ||
Securities available for sale | ||
Derivatives | 45 | |
Liabilities: | ||
Derivatives | 47 | |
U.S. government agencies and corporations | ||
Securities available for sale | ||
Securities available for sale | 62,572 | 48,282 |
U.S. government agencies and corporations | Recurring | ||
Securities available for sale | ||
Securities available for sale | 62,572 | 48,282 |
U.S. government agencies and corporations | Level 2 | Recurring | ||
Securities available for sale | ||
Securities available for sale | 62,572 | 48,282 |
Mortgage-backed securities | ||
Securities available for sale | ||
Securities available for sale | 186,120 | 123,714 |
Mortgage-backed securities | Recurring | ||
Securities available for sale | ||
Securities available for sale | 186,120 | 123,714 |
Mortgage-backed securities | Level 2 | Recurring | ||
Securities available for sale | ||
Securities available for sale | 186,120 | 123,714 |
Obligations of states and political subdivisions | ||
Securities available for sale | ||
Securities available for sale | 96,305 | 102,805 |
Obligations of states and political subdivisions | Recurring | ||
Securities available for sale | ||
Securities available for sale | 96,305 | 102,805 |
Obligations of states and political subdivisions | Level 2 | Recurring | ||
Securities available for sale | ||
Securities available for sale | 96,305 | 102,805 |
Corporate and other debt securities | ||
Securities available for sale | ||
Securities available for sale | 18,416 | 11,588 |
Corporate and other debt securities | Recurring | ||
Securities available for sale | ||
Securities available for sale | 18,416 | 11,588 |
Corporate and other debt securities | Level 2 | Recurring | ||
Securities available for sale | ||
Securities available for sale | $ 18,416 | $ 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) | Sep. 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 | Sep. 30, 2021 | Dec. 31, 2020 |
Assets: | ||
Securities available for sale | $ 363,413 | $ 286,389 |
Bank-owned life insurance | 20,382 | 20,205 |
Carrying Value | ||
Assets: | ||
Cash and short-term investments | 204,475 | 94,342 |
Securities available for sale | 363,413 | 286,389 |
Loans, net | 1,351,564 | 1,313,250 |
Loans held for sale | 116,789 | 214,266 |
Bank-owned life insurance | 20,382 | 20,205 |
Accrued interest receivable | 7,125 | 8,103 |
Financial liabilities: | ||
Demand and savings deposits | 1,411,980 | 1,282,590 |
Time deposits | 441,105 | 469,583 |
Borrowings | 86,394 | 69,864 |
Accrued interest payable | 581 | 1,109 |
Total Fair Value | ||
Assets: | ||
Cash and short-term investments | 203,974 | 94,379 |
Securities available for sale | 363,413 | 286,389 |
Loans, net | 1,368,093 | 1,308,569 |
Loans held for sale | 116,789 | 214,266 |
Bank-owned life insurance | 20,382 | 20,205 |
Accrued interest receivable | 7,125 | 8,103 |
Financial liabilities: | ||
Demand and savings deposits | 1,411,980 | 1,282,590 |
Time deposits | 444,446 | 474,154 |
Borrowings | 91,484 | 71,119 |
Accrued interest payable | 581 | 1,109 |
Total Fair Value | Level 1 | ||
Assets: | ||
Cash and short-term investments | 201,495 | 86,669 |
Accrued interest receivable | 7,125 | 8,103 |
Financial liabilities: | ||
Demand and savings deposits | 1,411,980 | 1,282,590 |
Accrued interest payable | 581 | 1,109 |
Total Fair Value | Level 2 | ||
Assets: | ||
Cash and short-term investments | 2,479 | 7,710 |
Securities available for sale | 363,413 | 286,389 |
Loans held for sale | 116,789 | 214,266 |
Bank-owned life insurance | 20,382 | 20,205 |
Financial liabilities: | ||
Time deposits | 444,446 | 474,154 |
Borrowings | 91,484 | 71,119 |
Total Fair Value | Level 3 | ||
Assets: | ||
Loans, net | 1,368,093 | 1,308,569 |
IRLC | Carrying Value | ||
Assets: | ||
Derivatives | 2,875 | 4,582 |
IRLC | Total Fair Value | ||
Assets: | ||
Derivatives | 2,875 | 4,582 |
IRLC | Total Fair Value | Level 2 | ||
Assets: | ||
Derivatives | 2,875 | 4,582 |
Interest rate swaps on loans | Carrying Value | ||
Assets: | ||
Derivatives | 4,961 | 8,185 |
Financial liabilities: | ||
Derivatives | 4,961 | 8,185 |
Interest rate swaps on loans | Total Fair Value | ||
Assets: | ||
Derivatives | 4,961 | 8,185 |
Financial liabilities: | ||
Derivatives | 4,961 | 8,185 |
Interest rate swaps on loans | Total Fair Value | Level 2 | ||
Assets: | ||
Derivatives | 4,961 | 8,185 |
Financial liabilities: | ||
Derivatives | 4,961 | 8,185 |
Forward sales of TBA securities | Carrying Value | ||
Assets: | ||
Derivatives | 45 | |
Financial liabilities: | ||
Derivatives | 47 | |
Forward sales of TBA securities | Total Fair Value | ||
Assets: | ||
Derivatives | 45 | |
Financial liabilities: | ||
Derivatives | 47 | |
Forward sales of TBA securities | Total Fair Value | Level 2 | ||
Assets: | ||
Derivatives | 45 | |
Financial liabilities: | ||
Derivatives | 47 | |
Cash flow hedges | Carrying Value | ||
Financial liabilities: | ||
Derivatives | 960 | 1,882 |
Cash flow hedges | Total Fair Value | ||
Financial liabilities: | ||
Derivatives | 960 | 1,882 |
Cash flow hedges | Total Fair Value | Level 2 | ||
Financial liabilities: | ||
Derivatives | 960 | 1,882 |
Cash flow hedges | Interest rate swaps on loans | ||
Financial liabilities: | ||
Derivatives | $ 960 | $ 1,882 |
Business Segments - Segment Rep
Business Segments - Segment Reporting (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)segment | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | |
Business Segments | |||||
Number of principal business segments | segment | 3 | ||||
Interest income | $ 23,604 | $ 23,822 | $ 70,546 | $ 72,184 | |
Interest expense | 1,986 | 2,977 | 6,524 | 10,482 | |
Net interest income | 21,618 | 20,845 | 64,022 | 61,702 | |
Gains on sales of loans | 5,660 | 9,706 | 18,665 | 17,987 | |
Other noninterest income | 6,382 | 7,232 | 20,833 | 17,527 | |
Net revenue | 33,660 | 37,783 | 103,520 | 97,216 | |
Provision for loan losses | 430 | 3,300 | 110 | 9,550 | |
Noninterest expense | 23,176 | 25,331 | 73,378 | 69,208 | |
Income before income taxes | 10,054 | 9,152 | 30,032 | 18,458 | |
Income tax expense (benefit) | 2,227 | 2,234 | 6,950 | 4,158 | |
Net income | 7,827 | 6,918 | 23,082 | 14,300 | |
Capital expenditures | 933 | 4,202 | 4,377 | 7,655 | |
Depreciation and amortization | 1,188 | 1,071 | 3,578 | 3,028 | |
Total assets | 2,209,408 | 2,209,408 | $ 2,086,310 | ||
Operating Segments | Community Banking | |||||
Business Segments | |||||
Interest income | 15,924 | 15,242 | 47,035 | 46,051 | |
Interest expense | 1,301 | 2,547 | 4,481 | 8,409 | |
Net interest income | 14,623 | 12,695 | 42,554 | 37,642 | |
Other noninterest income | 4,202 | 3,526 | 12,022 | 9,829 | |
Net revenue | 18,825 | 16,221 | 54,576 | 47,471 | |
Provision for loan losses | 1,500 | (200) | 3,900 | ||
Noninterest expense | 13,827 | 13,260 | 41,631 | 41,644 | |
Income before income taxes | 4,998 | 1,461 | 13,145 | 1,927 | |
Income tax expense (benefit) | 832 | 149 | 2,261 | (336) | |
Net income | 4,166 | 1,312 | 10,884 | 2,263 | |
Capital expenditures | 234 | 3,234 | 584 | 5,554 | |
Depreciation and amortization | 1,015 | 958 | 3,115 | 2,679 | |
Total assets | 2,061,796 | 2,061,796 | 1,951,622 | ||
Operating Segments | Mortgage Banking | |||||
Business Segments | |||||
Interest income | 863 | 1,503 | 3,011 | 3,261 | |
Interest expense | 240 | 449 | 925 | 1,034 | |
Net interest income | 623 | 1,054 | 2,086 | 2,227 | |
Gains on sales of loans | 5,691 | 9,755 | 18,753 | 18,036 | |
Other noninterest income | 2,266 | 2,915 | 7,298 | 6,913 | |
Net revenue | 8,580 | 13,724 | 28,137 | 27,176 | |
Provision for loan losses | 30 | 90 | |||
Noninterest expense | 5,643 | 7,634 | 18,838 | 15,713 | |
Income before income taxes | 2,907 | 6,090 | 9,209 | 11,463 | |
Income tax expense (benefit) | 799 | 1,640 | 2,588 | 3,149 | |
Net income | 2,108 | 4,450 | 6,621 | 8,314 | |
Capital expenditures | 55 | 14 | 118 | 340 | |
Depreciation and amortization | 61 | 71 | 193 | 216 | |
Total assets | 139,406 | 139,406 | 239,417 | ||
Operating Segments | Consumer Finance | |||||
Business Segments | |||||
Interest income | 9,388 | 9,628 | 28,058 | 29,418 | |
Interest expense | 2,424 | 2,191 | 6,926 | 6,567 | |
Net interest income | 6,964 | 7,437 | 21,132 | 22,851 | |
Other noninterest income | 45 | 93 | 231 | 290 | |
Net revenue | 7,009 | 7,530 | 21,363 | 23,141 | |
Provision for loan losses | 400 | 1,800 | 220 | 5,650 | |
Noninterest expense | 3,580 | 3,530 | 10,711 | 10,396 | |
Income before income taxes | 3,029 | 2,200 | 10,432 | 7,095 | |
Income tax expense (benefit) | 835 | 599 | 2,836 | 1,926 | |
Net income | 2,194 | 1,601 | 7,596 | 5,169 | |
Capital expenditures | 644 | 954 | 3,675 | 1,761 | |
Depreciation and amortization | 112 | 42 | 270 | 133 | |
Total assets | 353,319 | 353,319 | 314,746 | ||
Operating Segments | Other | |||||
Business Segments | |||||
Interest expense | 589 | 342 | 1,759 | 1,019 | |
Net interest income | (589) | (342) | (1,759) | (1,019) | |
Other noninterest income | (115) | 701 | 1,341 | 498 | |
Net revenue | (704) | 359 | (418) | (521) | |
Noninterest expense | 126 | 907 | 2,198 | 1,455 | |
Income before income taxes | (830) | (548) | (2,616) | (1,976) | |
Income tax expense (benefit) | (229) | (154) | (706) | (581) | |
Net income | (601) | (394) | (1,910) | (1,395) | |
Total assets | 41,813 | 41,813 | 43,826 | ||
Eliminations | |||||
Business Segments | |||||
Interest income | (2,571) | (2,551) | (7,558) | (6,546) | |
Interest expense | (2,568) | (2,552) | (7,567) | (6,547) | |
Net interest income | (3) | 1 | 9 | 1 | |
Gains on sales of loans | (31) | (49) | (88) | (49) | |
Other noninterest income | (16) | (3) | (59) | (3) | |
Net revenue | (50) | (51) | (138) | (51) | |
Income before income taxes | (50) | (51) | (138) | (51) | |
Income tax expense (benefit) | (10) | (29) | |||
Net income | (40) | $ (51) | (109) | $ (51) | |
Total assets | $ (386,926) | $ (386,926) | $ (463,301) |
Business Segments - Merger Rela
Business Segments - Merger Related Expenses and Segment Debt (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)item | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Business Segments | ||||||
Merger related costs | $ 0 | $ 0 | $ 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) | 2.20% | 2.20% | ||||
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 | $ 0 | 1,400,000 | ||||
Merger related costs, after income taxes | 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 | 998,000 | |||||
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 | Sep. 30, 2021 | Dec. 31, 2020 |
Standby Letters of Credit | ||
Commitments and Contingent Liabilities | ||
Face amount of asset | $ 19,170 | $ 19,070 |
Loan commitments | ||
Commitments and Contingent Liabilities | ||
Face amount of asset | $ 314,650 | $ 326,980 |
Commitments and Contingent Li_3
Commitments and Contingent Liabilities - Other (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Commitments and Contingent Liabilities | |||||
Provision for indemnification losses | $ 20 | $ 9 | $ 52 | $ 172 | |
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 | $ 3,410 | $ 3,410 | $ 3,360 |
Derivatives Financial Instrumen
Derivatives Financial Instruments (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 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 | 5,377 | $ 6,420 |
Other assets | ||
Derivatives and other information | ||
Cash collateral | 5,960 | 9,920 |
Forward sales of TBA securities | Not designated as hedges | ||
Derivatives and other information | ||
Notional amount | 16,500 | 8,000 |
Derivative Asset | 45 | |
Derivative Liability | 47 | |
Interest rate swaps on loans | Cash flow hedges | ||
Derivatives and other information | ||
Notional amount | 25,000 | 25,000 |
Derivative Liability | 960 | 1,882 |
Matched interest rate swap with borrower | Not designated as hedges | ||
Derivatives and other information | ||
Notional amount | 83,819 | 84,753 |
Derivative Asset | 4,794 | 8,185 |
Derivative Liability | 167 | |
Matched interest rate swap with counterparty | Not designated as hedges | ||
Derivatives and other information | ||
Notional amount | 83,819 | 84,753 |
Derivative Asset | 167 | |
Derivative Liability | 4,794 | 8,185 |
IRLC | Not designated as hedges | ||
Derivatives and other information | ||
Notional amount | 148,144 | 198,632 |
Derivative Asset | 2,875 | 4,582 |
Mortgage Banking | ||
Derivatives and other information | ||
IRLCs | 12,130 | 7,670 |
Unpaid principal on mortgage loans held for sale | 10,550 | 5,630 |
Mortgage Banking | Best-efforts forward sales contracts | ||
Derivatives and other information | ||
IRLCs | 136,010 | 190,960 |
Unpaid principal on mortgage loans held for sale | 102,110 | 200,880 |
Mortgage loans | 391,840 | |
Mortgage Banking | Forward sales of TBA securities | ||
Derivatives and other information | ||
Mortgage loans | 16,500 | 8,000 |
Mortgage Banking | Mandatory-delivery forward sales contracts | ||
Derivatives and other information | ||
Mortgage loans | 5,340 | $ 3,940 |
C&F Mortgage | Best-efforts forward sales contracts | ||
Derivatives and other information | ||
Mortgage loans | $ 238,120 |
Other Noninterest Expenses (Det
Other Noninterest Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Other Noninterest Expenses | ||||||
Data processing fees | $ 2,791 | $ 2,607 | $ 8,519 | $ 8,142 | ||
Mortgage banking loan processing expenses | 697 | 916 | 2,458 | 2,180 | ||
Professional fees | 675 | 706 | 2,159 | 2,424 | ||
Telecommunication expenses | 390 | 311 | 1,151 | 1,092 | ||
Marketing and advertising expenses | 374 | 369 | 1,178 | 1,207 | ||
Travel and educational expenses | 263 | 430 | 620 | 974 | ||
Other real estate (gain)/loss and expenses, net | 2 | 76 | (400) | 84 | ||
All other noninterest expenses | 1,838 | 2,018 | 5,670 | 5,836 | ||
Total Other Noninterest Expenses | 7,030 | 7,433 | 21,355 | 21,939 | ||
Merger related expenses | $ 0 | $ 0 | $ 0 | 898 | $ 2,100 | $ 2,100 |
Merger related data processing fees | 501 | |||||
Merger related professional fees | 336 | |||||
Merger related other noninterest expenses | $ 61 |