Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2022 | May 05, 2022 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 000-23423 | |
Entity Registrant Name | C & F FINANCIAL CORPORATION | |
Entity Incorporation, State or Country Code | VA | |
Entity Address, Address Line One | 3600 La Grange Parkway | |
Entity Tax Identification Number | 54-1680165 | |
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, $1.00 par value per share | |
Trading Symbol | CFFI | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 3,535,915 | |
Entity Central Index Key | 0000913341 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Cash and due from banks | $ 14,760 | $ 19,692 |
Interest-bearing deposits in other banks | 254,178 | 248,053 |
Total cash and cash equivalents | 268,938 | 267,745 |
Securities-available for sale at fair value, amortized cost of $433,574 and $372,520, respectively | 415,532 | 373,073 |
Loans held for sale, at fair value | 46,659 | 82,295 |
Loans, net of allowance for loan losses of $39,768 and $40,157, respectively | 1,401,841 | 1,369,903 |
Restricted stock, at cost | 1,120 | 1,027 |
Corporate premises and equipment, net | 44,975 | 44,799 |
Other real estate owned | 835 | |
Accrued interest receivable | 6,953 | 6,810 |
Goodwill | 25,191 | 25,191 |
Other intangible assets, net | 1,902 | 1,977 |
Bank-owned life insurance | 20,705 | 20,597 |
Net deferred tax asset | 17,194 | 13,608 |
Other assets | 50,833 | 56,661 |
Total assets | 2,301,843 | 2,264,521 |
Deposits | ||
Noninterest-bearing demand deposits | 596,769 | 581,694 |
Savings and interest-bearing demand deposits | 972,123 | 907,199 |
Time deposits | 400,769 | 425,721 |
Total deposits | 1,969,661 | 1,914,614 |
Short-term borrowings | 32,434 | 34,735 |
Long-term borrowings | 30,309 | 30,375 |
Trust preferred capital notes | 25,360 | 25,351 |
Accrued interest payable | 434 | 715 |
Other liabilities | 42,367 | 47,707 |
Total liabilities | 2,100,565 | 2,053,497 |
Commitments and contingent liabilities (Note 10) | ||
Equity | ||
Common stock ($1.00 par value, 8,000,000 shares authorized, 3,546,024 and 3,545,554 shares issued and outstanding, respectively, includes 140,037 and 140,577 of unvested shares, respectively) | 3,406 | 3,405 |
Additional paid-in capital | 15,022 | 15,189 |
Retained earnings | 198,020 | 193,811 |
Accumulated other comprehensive loss, net | (15,864) | (2,087) |
Equity attributable to C&F Financial Corporation | 200,584 | 210,318 |
Noncontrolling interest | 694 | 706 |
Total equity | 201,278 | 211,024 |
Total liabilities and equity | $ 2,301,843 | $ 2,264,521 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Consolidated Balance Sheets | ||
Available-for-sale securities, amortized cost | $ 433,574 | $ 372,520 |
Loans, allowance for loan losses | $ 39,768 | $ 40,157 |
Common stock par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized | 8,000,000 | 8,000,000 |
Common stock, shares issued | 3,546,024 | 3,545,554 |
Common stock, shares outstanding | 3,546,024 | 3,545,554 |
Common stock, unvested shares | 140,037 | 140,577 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Interest income | ||
Interest and fees on loans | $ 20,484 | $ 21,813 |
Interest on interest-bearing deposits and federal funds sold | 106 | 46 |
Interest and dividends on securities | ||
U.S. government agencies and corporations | 293 | 125 |
Mortgage-backed securities | 668 | 409 |
Tax-exempt obligations of states and political subdivisions | 350 | 469 |
Taxable obligations of states and political subdivisions | 113 | 90 |
Other | 217 | 124 |
Total interest income | 22,231 | 23,076 |
Interest expense | ||
Savings and interest-bearing deposits | 387 | 359 |
Time deposits | 718 | 1,308 |
Borrowings | 366 | 449 |
Trust preferred capital notes | 284 | 284 |
Total interest expense | 1,755 | 2,400 |
Net interest income | 20,476 | 20,676 |
Provision for loan losses | (328) | 280 |
Net interest income after provision for loan losses | 20,804 | 20,396 |
Noninterest income | ||
Gains on sales of loans | 2,695 | 7,058 |
Interchange income | 1,430 | 1,318 |
Service charges on deposit accounts | 1,046 | 819 |
Mortgage banking fee income | 853 | 1,856 |
Wealth management services income, net | 647 | 702 |
Mortgage lender services income | 424 | 778 |
Other service charges and fees | 374 | 389 |
Net gains on sales, maturities and calls of available for sale securities | 32 | |
Other (loss) income, net | (740) | 1,123 |
Total noninterest income | 6,729 | 14,075 |
Noninterest expenses | ||
Salaries and employee benefits | 11,856 | 15,613 |
Occupancy | 2,209 | 2,360 |
Other | 6,146 | 7,046 |
Total noninterest expenses | 20,211 | 25,019 |
Income before income taxes | 7,322 | 9,452 |
Income tax expense | 1,587 | 2,287 |
Net income | 5,735 | 7,165 |
Less net income attributable to noncontrolling interest | 106 | 104 |
Net income attributable to C&F Financial Corporation | $ 5,629 | $ 7,061 |
Net income per share - basic (in dollars per share) | $ 1.59 | $ 1.92 |
Net income per share - diluted (in Dollars per share) | $ 1.59 | $ 1.92 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||
Net income | $ 5,735 | $ 7,165 |
Other comprehensive loss, net of tax: | ||
Securities available for sale | (14,690) | (2,373) |
Defined benefit plan | (7) | 34 |
Cash flow hedges | 920 | 734 |
Other comprehensive loss, net of tax | (13,777) | (1,605) |
Comprehensive (loss) income | (8,042) | 5,560 |
Less comprehensive income attributable to noncontrolling interest | 106 | 104 |
Comprehensive (loss) income attributable to C&F Financial Corporation | $ (8,148) | $ 5,456 |
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, 2020 | $ 3,514 | $ 21,427 | $ 170,819 | $ (1,955) | $ 666 | $ 194,471 |
Comprehensive income: | ||||||
Net income | 7,061 | 104 | 7,165 | |||
Other comprehensive loss | (1,605) | (1,605) | ||||
Share-based compensation | 392 | 392 | ||||
Restricted stock vested | 16 | (16) | ||||
Common stock issued | 2 | 42 | 44 | |||
Common stock purchased | (6) | (223) | (229) | |||
Cash dividends declared | (1,399) | (1,399) | ||||
Distributions to noncontrolling interest | (147) | (147) | ||||
Balance, end of period at Mar. 31, 2021 | 3,526 | 21,622 | 176,481 | (3,560) | 623 | 198,692 |
Balance, beginning of the period at Dec. 31, 2021 | 3,405 | 15,189 | 193,811 | (2,087) | 706 | 211,024 |
Comprehensive income: | ||||||
Net income | 5,629 | 106 | 5,735 | |||
Other comprehensive loss | (13,777) | (13,777) | ||||
Share-based compensation | 511 | 511 | ||||
Restricted stock vested | 14 | (14) | ||||
Common stock issued | 1 | 45 | 46 | |||
Common stock purchased | (14) | (709) | (723) | |||
Cash dividends declared | (1,420) | (1,420) | ||||
Distributions to noncontrolling interest | (118) | (118) | ||||
Balance, end of period at Mar. 31, 2022 | $ 3,406 | $ 15,022 | $ 198,020 | $ (15,864) | $ 694 | $ 201,278 |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (Parentheticals) - $ / shares | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
CONSOLIDATED STATEMENTS OF EQUITY | ||
Cash dividends declared - common stock (in dollars per share) | $ 0.40 | $ 0.38 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Operating activities: | ||
Net income | $ 5,735 | $ 7,165 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
(Reversal of) provision for loan losses | (328) | 280 |
Accretion of certain acquisition-related discounts, net | (362) | (743) |
Share-based compensation | 511 | 392 |
Depreciation and amortization | 1,135 | 1,189 |
Accretion of discounts and amortization of premiums on securities, net | 811 | 833 |
(Reversal of) provision for indemnifications | (583) | 17 |
Income from bank-owned life insurance | (77) | (112) |
Pension expense | 177 | 206 |
Proceeds from sales of loans held for sale | 227,612 | 462,469 |
Origination of loans held for sale | (189,976) | (424,082) |
Gains on sales of loans held for sale | (2,695) | (7,058) |
Other gains, net | (102) | (59) |
Change in other assets and liabilities: | ||
Accrued interest receivable | (143) | 380 |
Other assets | 1,052 | 198 |
Accrued interest payable | (281) | (375) |
Other liabilities | (1,289) | 434 |
Net cash provided by operating activities | 41,197 | 41,134 |
Investing activities: | ||
Proceeds from sales, maturities and calls of securities available for sale and payments on mortgage-backed securities | 14,629 | 33,712 |
Purchases of securities available for sale | (76,494) | (72,413) |
(Purchases) maturities of time deposits, net | (247) | 1,976 |
Repayments on loans held for investment by non-bank affiliates | 44,274 | 35,907 |
Purchases of loans held for investment by non-bank affiliates | (72,818) | (41,064) |
Net increase in community banking loans held for investment | (2,320) | (22,770) |
Purchases of corporate premises and equipment | (1,203) | (2,123) |
Changes in collateral posted with other financial institutions, net | 3,880 | 4,300 |
Other investing activities, net | (186) | 683 |
Net cash used in investing activities | (90,485) | (61,792) |
Financing activities: | ||
Net increase in demand and savings deposits | 79,999 | 91,293 |
Net decrease in time deposits | (24,952) | (11,414) |
Net (decrease) increase in short-term borrowings | (2,301) | 3,471 |
Repurchases of common stock | (723) | (229) |
Cash dividends paid | (1,420) | (1,399) |
Other financing activities, net | (122) | (295) |
Net cash provided by financing activities | 50,481 | 81,427 |
Net increase in cash and cash equivalents | 1,193 | 60,769 |
Cash and cash equivalents at beginning of period | 267,745 | 86,669 |
Cash and cash equivalents at end of period | 268,938 | 147,438 |
Supplemental cash flow disclosures: | ||
Interest paid | 2,047 | 2,856 |
Supplemental disclosure of noncash investing and financing activities: | ||
Liabilities assumed to acquire right of use assets under operating leases | $ 838 | $ 118 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2022 | |
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 9. Basis of Presentation: Reclassification: Derivative Financial Instruments: Share-Based Compensation: A summary of activity for restricted stock awards during the first three months of 2022 and 2021 is presented below: 2022 Weighted- Average Grant Date Shares Fair Value Unvested, December 31, 2021 140,577 $ 48.57 Granted 15,930 50.57 Vested (14,270) 51.24 Forfeited (2,200) 48.11 Unvested, March 31, 2022 140,037 48.57 2021 Weighted- Average Grant Date Shares Fair Value Unvested, December 31, 2020 155,945 $ 48.52 Granted 18,975 43.70 Vested (16,105) 43.05 Forfeited (1,750) 45.50 Unvested, March 31, 2021 157,065 48.53 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 “Financial Instruments – Credit Losses (Topic 326) - Troubled Debt Restructurings and Vintage Disclosures” on expected losses to estimate credit losses on certain types of financial instruments. It also modifies the impairment model for available-for-sale debt securities and provides for a simplified accounting model for purchased financial assets with credit deterioration since their origination. The new standard will be effective for the Corporation beginning on January 1, 2023. Early adoption of the new standard is permitted. 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. In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848) – Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” This guidance provides temporary, optional expedients and exceptions to ease the potential burden in accounting for modifications of loan contracts, borrowings, hedging relationships and other transactions related to reference rate reform associated with the LIBOR transition if certain criteria are met. The amendments are effective as of March 12, 2020 through December 31, 2022, can be adopted at an instrument level. The Corporation expects to apply Topic 848 in the case of modifications to certain loans, borrowings and cash flow hedges during 2022, and that these modifications will not have a material impact on the consolidated financial statements. Other accounting standards that have been issued by the FASB or other standards-setting bodies are not currently expected to have a material effect on the Corporation’s financial position, results of operations or cash flows. |
Securities
Securities | 3 Months Ended |
Mar. 31, 2022 | |
Securities | |
Securities | NOTE 2: Securities The Corporation’s debt securities, all of which are classified as available for sale, are summarized as follows: March 31, 2022 Gross Gross Amortized Unrealized Unrealized (Dollars in thousands) Cost Gains Losses Fair Value U.S. Treasury securities $ 26,730 $ — $ (519) $ 26,211 U.S. government agencies and corporations 78,291 — (5,812) 72,479 Mortgage-backed securities 207,179 111 (8,839) 198,451 Obligations of states and political subdivisions 94,312 350 (2,942) 91,720 Corporate and other debt securities 27,062 133 (524) 26,671 $ 433,574 $ 594 $ (18,636) $ 415,532 December 31, 2021 Gross Gross Amortized Unrealized Unrealized (Dollars in thousands) Cost Gains Losses Fair Value U.S. government agencies and corporations $ 69,583 $ 41 $ (1,339) $ 68,285 Mortgage-backed securities 189,985 1,565 (1,201) 190,349 Obligations of states and political subdivisions 91,304 1,642 (280) 92,666 Corporate and other debt securities 21,648 246 (121) 21,773 $ 372,520 $ 3,494 $ (2,941) $ 373,073 The amortized cost and estimated fair value of securities at March 31, 2022, by the earlier of contractual maturity or expected maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to prepay obligations with or without call or prepayment penalties. March 31, 2022 Amortized (Dollars in thousands) Cost Fair Value Due in one year or less $ 56,457 $ 53,744 Due after one year through five years 278,190 268,883 Due after five years through ten years 94,042 88,462 Due after ten years 4,885 4,443 $ 433,574 $ 415,532 The following table presents the gross realized gains and losses on and the proceeds from the sales, maturities and calls of securities. During the three months ended March 31, 2022 there were no sales of securities. During the three months ended March 31, 2021, $2.30 million of proceeds were related to sales of securities. Three Months Ended March 31, (Dollars in thousands) 2022 2021 Realized gains from sales, maturities and calls of securities: Gross realized gains $ — $ 32 Gross realized losses — — Net realized gains $ — $ 32 Proceeds from sales, maturities, calls and paydowns of securities $ 14,629 $ 33,712 The Corporation pledges securities primarily to secure public deposits and repurchase agreements. Securities with an aggregate amortized cost of $185.48 million and an aggregate fair value of $177.40 million were pledged at March 31, 2022. Securities with an aggregate amortized cost of $185.25 million and an aggregate fair value of $186.22 million were pledged at December 31, 2021. Securities in an unrealized loss position at March 31, 2022, 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. Treasury securities $ 24,200 $ 519 $ — $ — $ 24,200 $ 519 U.S. government agencies and corporations 41,083 2,599 29,078 3,213 70,161 5,812 Mortgage-backed securities 151,040 7,102 26,199 1,737 177,239 8,839 Obligations of states and political subdivisions 54,328 2,408 6,875 534 61,203 2,942 Corporate and other debt securities 16,520 488 963 36 17,483 524 Total temporarily impaired securities $ 287,171 $ 13,116 $ 63,115 $ 5,520 $ 350,286 $ 18,636 There were 390 debt securities totaling $350.29 million of aggregate fair value considered temporarily impaired at March 31, 2022. The primary cause of the temporary impairments in the Corporation’s investments in debt securities was increases in market interest rates. The Corporation concluded that no other-than-temporary impairment existed in its securities portfolio at March 31, 2022, 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, 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 $ 46,561 $ 945 $ 10,604 $ 394 $ 57,165 $ 1,339 Mortgage-backed securities 126,873 1,127 5,178 74 132,051 1,201 Obligations of states and political subdivisions 16,578 224 2,703 56 19,281 280 Corporate and other debt securities 8,925 121 — — 8,925 121 Total temporarily impaired securities $ 198,937 $ 2,417 $ 18,485 $ 524 $ 217,422 $ 2,941 The Corporation’s investment in restricted stock totaled $1.12 million at March 31, 2022 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 March 31, 2022 and no impairment has been recognized. |
Loans
Loans | 3 Months Ended |
Mar. 31, 2022 | |
Loans | |
Loans | NOTE 3: Loans Major classifications of loans are summarized as follows: March 31, December 31, (Dollars in thousands) 2022 2021 Real estate – residential mortgage $ 216,026 $ 217,016 Real estate – construction 1 61,302 57,495 Commercial, financial and agricultural 2 719,096 717,730 Equity lines 40,705 41,345 Consumer 7,758 8,280 Consumer finance 3 396,722 368,194 1,441,609 1,410,060 Less allowance for loan losses (39,768) (40,157) Loans, net $ 1,401,841 $ 1,369,903 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). 3 Includes the Corporation’s non-prime automobile lending and prime marine and recreational vehicle lending. Consumer loans included $235,000 and $207,000 of demand deposit overdrafts at March 31, 2022 and December 31, 2021, 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 March 31, 2022 and December 31, 2021 of loans acquired in business combinations were as follows: March 31, 2022 December 31, 2021 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 $ 7,098 $ 52,913 $ 60,011 $ 8,350 $ 57,862 $ 66,212 Carrying amount Real estate – residential mortgage $ 510 $ 10,281 $ 10,791 $ 817 $ 9,997 $ 10,814 Real estate – construction — — — — 1,356 1,356 Commercial, financial and agricultural 1 2,106 34,235 36,341 2,753 37,313 40,066 Equity lines 29 6,310 6,339 38 6,919 6,957 Consumer 41 1,112 1,153 47 1,213 1,260 Total acquired loans $ 2,686 $ 51,938 $ 54,624 $ 3,655 $ 56,798 $ 60,453 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): Three Months Ended March 31, (Dollars in thousands) 2022 2021 Accretable yield, balance at beginning of period $ 3,111 $ 4,048 Accretion (363) (517) Reclassification of nonaccretable difference due to improvement in expected cash flows 378 456 Other changes, net (69) (69) Accretable yield, balance at end of period $ 3,057 $ 3,918 Loans on nonaccrual status were as follows: March 31, December 31, (Dollars in thousands) 2022 2021 Real estate – residential mortgage $ 342 $ 315 Commercial, financial and agricultural: Commercial business lending — 2,122 Equity lines 103 104 Consumer 2 3 Consumer finance: Automobiles 318 380 Total loans on nonaccrual status $ 765 $ 2,924 The past due status of loans as of March 31, 2022 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 $ 617 $ — $ 329 $ 946 $ 510 $ 214,570 $ 216,026 $ — Real estate – construction: Construction lending — — — — — 46,206 46,206 — Consumer lot lending 235 14 — 249 — 14,847 15,096 — Commercial, financial and agricultural: Commercial real estate lending 231 — — 231 2,106 523,085 525,422 — Land acquisition and development lending — — — — — 37,062 37,062 — Builder line lending — — — — — 30,915 30,915 — Commercial business lending 33 — — 33 — 125,664 125,697 — Equity lines 13 — — 13 29 40,663 40,705 — Consumer 1 — — 1 41 7,716 7,758 — Consumer finance: Automobiles 5,588 777 318 6,683 — 342,007 348,690 — Marine and recreational vehicles 81 — — 81 — 47,951 48,032 — Total $ 6,799 $ 791 $ 647 $ 8,237 $ 2,686 $ 1,430,686 $ 1,441,609 $ — 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 $118,000 and 90+ days past due of $647,000. The past due status of loans as of December 31, 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 $ 963 $ 325 $ 429 $ 1,717 $ 817 $ 214,482 $ 217,016 $ 129 Real estate – construction: Construction lending — — — — — 39,252 39,252 — Consumer lot lending — — — — — 18,243 18,243 — Commercial, financial and agricultural: Commercial real estate lending — 39 — 39 2,753 525,121 527,913 — Land acquisition and development lending — — — — — 27,609 27,609 — Builder line lending — — — — — 30,499 30,499 — Commercial business lending 8 — — 8 — 131,701 131,709 — Equity lines 55 31 49 135 38 41,172 41,345 49 Consumer 12 — — 12 47 8,221 8,280 — Consumer finance: Automobiles 6,519 1,008 380 7,907 — 314,160 322,067 — Marine and recreational vehicles 32 — — 32 — 46,095 46,127 — Total $ 7,589 $ 1,403 $ 858 $ 9,850 $ 3,655 $ 1,396,555 $ 1,410,060 $ 178 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 $2.24 million and 90+ days past due of $680,000. There were no loan modifications during the three months ended March 31, 2022 that were classified as troubled debt restructurings (TDRs). There was one loan modification during the three months ended March 31, 2021 that was classified as a TDR. This TDR was a residential mortgage with a recorded investment of $4,000 at the time of modification and included a modification of the loan’s payment structure. 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 months ended March 31, 2022 and 2021. Impaired loans, which included TDRs of $2.18 million, and the related allowance at March 31, 2022 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 $ 1,270 $ 439 $ 729 $ 52 $ 1,118 $ 14 Commercial, financial and agricultural: Commercial real estate lending 1,387 — 1,388 90 1,388 17 Equity lines 28 28 — — 28 — Total $ 2,685 $ 467 $ 2,117 $ 142 $ 2,534 $ 31 Impaired loans, which included TDRs of $2.69 million, and the related allowance at December 31, 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 $ 1,689 $ 550 $ 1,035 $ 63 $ 1,560 $ 64 Commercial, financial and agricultural: Commercial real estate lending 1,389 — 1,390 103 1,393 72 Commercial business lending 2,234 — 2,123 489 2,257 — Equity lines 118 110 — — 119 4 Total $ 5,430 $ 660 $ 4,548 $ 655 $ 5,329 $ 140 |
Allowance for Loan Losses
Allowance for Loan Losses | 3 Months Ended |
Mar. 31, 2022 | |
Allowance for Loan Losses | |
Allowance for Loan Losses | NOTE 4: Allowance for Loan Losses The following table presents the changes in the allowance for loan losses by major classification during the three months ended March 31, 2022: 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, 2021 $ 2,660 $ 856 $ 11,085 $ 593 $ 172 $ 24,791 $ 40,157 Provision (credited) charged to operations (38) 37 (636) (49) 8 350 (328) Loans charged off — — (11) — (48) (1,313) (1,372) Recoveries of loans previously charged off 6 — 2 — 32 1,271 1,311 Balance at March 31, 2022 $ 2,628 $ 893 $ 10,440 $ 544 $ 164 $ 25,099 $ 39,768 The following table presents the changes in the allowance for loan losses by major classification during the three months ended March 31, 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 charged (credited) to operations (28) (153) 311 (16) (84) 250 280 Loans charged off — — — — (45) (1,651) (1,696) Recoveries of loans previously charged off 7 — — — 35 1,251 1,293 Balance at March 31, 2021 $ 2,893 $ 822 $ 11,007 $ 671 $ 277 $ 23,363 $ 39,033 The following table presents, as of March 31, 2022, 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 $ 52 $ — $ 90 $ — $ — $ — $ 142 Collectively evaluated for impairment 2,576 893 10,350 544 164 25,099 39,626 Acquired loans - PCI — — — — — — — Total allowance $ 2,628 $ 893 $ 10,440 $ 544 $ 164 $ 25,099 $ 39,768 Loans: Individually evaluated for impairment $ 1,168 $ — $ 1,388 $ 28 $ — $ — $ 2,584 Collectively evaluated for impairment 214,348 61,302 715,602 40,648 7,717 396,722 1,436,339 Acquired loans - PCI 510 — 2,106 29 41 — 2,686 Total loans $ 216,026 $ 61,302 $ 719,096 $ 40,705 $ 7,758 $ 396,722 $ 1,441,609 The following table presents, as of December 31, 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 $ 63 $ — $ 592 $ — $ — $ — $ 655 Collectively evaluated for impairment 2,597 856 10,493 593 172 24,791 39,502 Acquired loans - PCI — — — — — — — Total allowance $ 2,660 $ 856 $ 11,085 $ 593 $ 172 $ 24,791 $ 40,157 Loans: Individually evaluated for impairment $ 1,585 $ — $ 3,513 $ 110 $ — $ — $ 5,208 Collectively evaluated for impairment 214,614 57,495 711,464 41,197 8,233 368,194 1,401,197 Acquired loans - PCI 817 — 2,753 38 47 — 3,655 Total loans $ 217,016 $ 57,495 $ 717,730 $ 41,345 $ 8,280 $ 368,194 $ 1,410,060 Loans by credit quality indicators as of March 31, 2022 were as follows: Special Substandard (Dollars in thousands) Pass Mention Substandard Nonaccrual Total 1 Real estate – residential mortgage $ 214,505 $ 509 $ 670 $ 342 $ 216,026 Real estate – construction: Construction lending 46,206 — — — 46,206 Consumer lot lending 15,096 — — — 15,096 Commercial, financial and agricultural: Commercial real estate lending 517,441 2,057 5,924 — 525,422 Land acquisition and development lending 37,062 — — — 37,062 Builder line lending 30,915 — — — 30,915 Commercial business lending 125,697 — — — 125,697 Equity lines 40,578 10 14 103 40,705 Consumer 7,756 — — 2 7,758 $ 1,035,256 $ 2,576 $ 6,608 $ 447 $ 1,044,887 1 At March 31, 2022, the Corporation did not have any loans classified as Doubtful or Loss. Non- (Dollars in thousands) Performing Performing Total Consumer finance: Automobiles $ 348,372 $ 318 $ 348,690 Marine and recreational vehicles 48,032 - 48,032 $ 396,404 $ 318 $ 396,722 Loans by credit quality indicators as of December 31, 2021 were as follows: Special Substandard (Dollars in thousands) Pass Mention Substandard Nonaccrual Total 1 Real estate – residential mortgage $ 215,432 $ 664 $ 605 $ 315 $ 217,016 Real estate – construction: Construction lending 39,252 — — — 39,252 Consumer lot lending 18,243 — — — 18,243 Commercial, financial and agricultural: Commercial real estate lending 519,938 1,989 5,986 — 527,913 Land acquisition and development lending 27,609 — — — 27,609 Builder line lending 30,499 — — — 30,499 Commercial business lending 129,587 — — 2,122 131,709 Equity lines 41,013 47 181 104 41,345 Consumer 8,276 — 1 3 8,280 $ 1,029,849 $ 2,700 $ 6,773 $ 2,544 $ 1,041,866 1 At December 31, 2021, the Corporation did not have any loans classified as Doubtful or Loss. Non- (Dollars in thousands) Performing Performing Total Consumer finance: Automobiles $ 321,687 $ 380 $ 322,067 Marine and recreational vehicles 46,127 - 46,127 $ 367,814 $ 380 $ 368,194 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Other Intangible Assets | |
Goodwill and Other Intangible Assets | NOTE 5: Goodwill and Other Intangible Assets The carrying amount of goodwill was $25.19 million at March 31, 2022 and December 31, 2021. There were no changes in the recorded balance of goodwill during the three months ended March 31, 2022 or 2021. The Corporation had $1.90 million and $1.98 million of other intangible assets as of March 31, 2022 and December 31, 2021, respectively. Other intangible assets were recognized in connection with the core deposits acquired from Peoples Bankshares, Incorporated 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: March 31, December 31, 2022 2021 Gross Gross Carrying Accumulated Carrying Accumulated (Dollars in thousands) Amount Amortization Amount Amortization Amortizable intangible assets: Core deposit intangibles $ 1,711 $ (360) $ 1,711 $ (325) Other amortizable intangibles 1,405 (854) 1,405 (814) Total $ 3,116 $ (1,214) $ 3,116 $ (1,139) Amortization expense was $75,000 and $78,000 for the three months ended March 31, 2022 and 2021, respectively. |
Equity, Other Comprehensive Inc
Equity, Other Comprehensive Income (Loss) and Earnings Per Share | 3 Months Ended |
Mar. 31, 2022 | |
Equity, Other Comprehensive Income (Loss) and Earnings Per Share | |
Equity, Other Comprehensive Income (Loss) and Earnings Per Share | NOTE 6: Equity, Other Comprehensive Income (Loss) and Earnings Per Share Equity and Noncontrolling Interest The Corporation’s Board of Directors authorized a program, effective December 1, 2021, to repurchase up to $10.0 million of the Corporation’s common stock through November 30, 2022 (the 2021 Repurchase Program). During the three months ended March 31, 2022, the Corporation repurchased Additionally during the three months ended March 31, 2022 and 2021, the Corporation withheld 4,434 shares and 5,633 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. Accumulated Other Comprehensive Loss, Net Changes in each component of accumulated other comprehensive loss were as follows for the three months ended March 31, 2022 and 2021: Securities Defined Cash Available Benefit Flow (Dollars in thousands) For Sale Plan Hedges Total Accumulated other comprehensive income (loss) at December 31, 2021 $ 437 $ (2,055) $ (469) $ (2,087) Net (loss) income arising during the period (18,595) — 1,240 (17,355) Related income tax effects 3,905 — (319) 3,586 (14,690) — 921 (13,769) Reclassifications into net income — (8) (2) (10) Related income tax effects — 1 1 2 — (7) (1) (8) Other comprehensive (loss) income, net of tax (14,690) (7) 920 (13,777) Accumulated other comprehensive (loss) income at March 31, 2022 $ (14,253) $ (2,062) $ 451 $ (15,864) Securities Defined Cash Available Benefit Flow (Dollars in thousands) For Sale Plan Hedges Total Accumulated other comprehensive income (loss) at December 31, 2020 $ 4,397 $ (4,985) $ (1,367) $ (1,955) Net (loss) income arising during the period (2,971) — 990 (1,981) Related income tax effects 623 — (255) 368 (2,348) — 735 (1,613) Reclassifications into net income (32) 43 (2) 9 Related income tax effects 7 (9) 1 (1) (25) 34 (1) 8 Other comprehensive (loss) income, net of tax (2,373) 34 734 (1,605) Accumulated other comprehensive income (loss) at March 31, 2021 $ 2,024 $ (4,951) $ (633) $ (3,560) The following table provides information regarding reclassifications from accumulated other comprehensive loss into net income for the three months ended March 31, 2022 and 2021: Three Months Ended March 31, Line Item In the (Dollars in thousands) 2022 2021 Consolidated Statements of Income Securities available for sale: Reclassification of net realized gains into net income $ — $ 32 Net gains on sales, maturities and calls of available for sale securities Related income tax effects — (7) Income tax expense — 25 Net of tax Defined benefit plan: 1 Reclassification of recognized net actuarial losses into net income (9) (60) Noninterest expenses - Other Amortization of prior service credit into net income 17 17 Noninterest expenses - Other Related income tax effects (1) 9 Income tax expense 7 (34) Net of tax Csah flow hedges: Amortization of hedging gains into net income 2 2 Interest expense - Trust preferred capital notes Related income tax effects (1) (1) Income tax expense 1 1 Net of tax Total reclassifications into net income $ 8 $ (8) 1 See “Note 7: Employee Benefit Plans,” for additional information. Earnings Per Share (EPS) The components of the Corporation’s EPS calculations are as follows: Three Months Ended March 31, (Dollars in thousands) 2022 2021 Net income attributable to C&F Financial Corporation $ 5,629 $ 7,061 Weighted average shares outstanding — 3,547,780 3,676,067 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 | 3 Months Ended |
Mar. 31, 2022 | |
Employee Benefit Plans | |
Employee Benefit Plans | NOTE 7: Employee Benefit Plans The following table summarizes the components of net periodic benefit cost for the Bank’s non-contributory cash balance pension plan. Three Months Ended March 31, (Dollars in thousands) 2022 2021 Components of net periodic benefit cost: Service cost, included in salaries and employee benefits $ 479 $ 487 Other components of net periodic benefit cost: Interest cost 124 116 Expected return on plan assets (418) (440) Amortization of prior service credit (17) (17) Recognized net actuarial losses 9 60 Other components of net periodic benefit cost, included in other noninterest expense (302) (281) Net periodic benefit cost $ 177 $ 206 |
Fair Value of Assets and Liabil
Fair Value of Assets and Liabilities | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value of Assets and Liabilities | |
Fair Value of Assets and Liabilities | NOTE 8: Fair Value of Assets and Liabilities Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. U.S. GAAP requires that valuation techniques maximize the use of observable inputs and minimize the use of unobservable inputs. U.S. GAAP also establishes a fair value hierarchy which prioritizes the valuation inputs into three broad levels. Based on the underlying inputs, each fair value measurement in its entirety is reported in one of the three levels. These levels are: ● Level 1—Valuation is based upon quoted prices for identical instruments traded in active markets. Level 1 assets and liabilities include debt securities traded in an active exchange market, as well as U.S. Treasury securities. ● Level 2—Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. ● Level 3—Valuation is determined using model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect the Corporation’s estimates of assumptions that market participants would use in pricing the respective asset or liability. Valuation techniques may include the use of pricing models, discounted cash flow models and similar techniques. U.S. GAAP allows an entity the irrevocable option to elect fair value (the fair value option) for the initial and subsequent measurement for certain financial assets and liabilities on a contract-by-contract basis. The Corporation has elected to use fair value accounting for its entire portfolio of loans held for sale (LHFS). Assets and Liabilities Measured at Fair Value on a Recurring Basis The following describes the valuation techniques and inputs used by the Corporation in determining the fair value of certain assets recorded at fair value on a recurring basis in the financial statements. Securities available for sale. securities available for sale, which were valued using Level 2 fair value measurements. The Corporation has contracted with third party portfolio accounting service vendors for valuation of its securities portfolio. The vendors’ sources for security valuation are ICE Data Services (ICE) and Thomson Reuters Pricing Service (TRPS). Each source provides opinions, known as evaluated prices, as to the value of individual securities based on model-based pricing techniques that are partially based on available market data, including prices for similar instruments in active markets and prices for identical assets in markets that are not active. ICE provides evaluated prices for the Corporation’s obligations of states and political subdivisions category of securities. ICE uses proprietary pricing models and pricing systems, mathematical tools and judgment to determine an evaluated price for a security based upon a hierarchy of market information regarding that security or securities with similar characteristics. TRPS provides evaluated prices for the Corporation’s U.S. government agencies and corporations, mortgage-backed, and corporate categories of securities. Fixed-rate callable securities of the U.S. government agencies and corporations category are individually evaluated on an option adjusted spread basis for callable issues or on a nominal spread basis incorporating the term structure of agency market spreads and the appropriate risk free benchmark curve for non-callable issues. Pass-through mortgage-backed securities (MBS) in the mortgage-backed category are grouped into aggregate categories defined by issuer program, weighted average coupon, and weighted average maturity. Each aggregate is benchmarked to relative to-be-announced mortgage-backed securities (TBA securities) or other benchmark prices. TBA securities prices are obtained from market makers and live trading systems. Collateralized mortgage obligations in the mortgage-backed category are individually evaluated based upon a hierarchy of security specific information and market data regarding that security or securities with similar characteristics. Each evaluation is determined using an option adjusted spread and prepayment model based on volatility-driven, multi-dimensional spread tables. Fixed-rate securities issued by the Small Business Association in the mortgage backed category are individually evaluated based upon a hierarchy of security specific information and market data regarding that security or securities with similar characteristics. Other investments. 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. March 31, 2022 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. Treasury securities $ — $ 26,211 $ — $ 26,211 U.S. government agencies and corporations — 72,479 — 72,479 Mortgage-backed securities — 198,451 — 198,451 Obligations of states and political subdivisions — 91,720 — 91,720 Corporate and other debt securities — 26,671 — 26,671 Total securities available for sale — 415,532 — 415,532 Loans held for sale — 46,659 — 46,659 Derivatives IRLC — 1,767 — 1,767 Interest rate swaps on loans — 1,554 — 1,554 Cash flow hedges — 575 — 575 Total assets $ — $ 466,087 $ — $ 466,087 Liabilities: Derivatives Interest rate swaps on loans $ — $ 1,554 $ — $ 1,554 Total liabilities $ — $ 1,554 $ — $ 1,554 December 31, 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 $ — $ 68,285 $ — $ 68,285 Mortgage-backed securities — 190,349 — 190,349 Obligations of states and political subdivisions — 92,666 — 92,666 Corporate and other debt securities — 21,773 — 21,773 Total securities available for sale — 373,073 — 373,073 Loans held for sale — 82,295 — 82,295 Derivatives IRLC — 1,523 — 1,523 Interest rate swaps on loans — 3,467 — 3,467 Total assets $ — $ 460,358 $ — $ 460,358 Liabilities: Derivatives Interest rate swaps on loans $ — $ 3,467 $ — $ 3,467 Cash flow hedges — 665 — 665 Forward sales of TBA securities — 3 — 3 Total liabilities $ — $ 4,135 $ — $ 4,135 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). At March 31, 2022 and December 31, 2021 there were no impaired loans and no OREO that were measured at fair value. 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 March 31, 2022 Classified as Total Fair (Dollars in thousands) Value Level 1 Level 2 Level 3 Value Financial assets: Cash and short-term investments $ 270,928 $ 268,938 $ 1,468 $ — $ 270,406 Securities available for sale 415,532 — 415,532 — 415,532 Loans, net 1,401,841 — — 1,405,244 1,405,244 Loans held for sale 46,659 — 46,659 — 46,659 Derivatives IRLC 1,767 — 1,767 — 1,767 Interest rate swaps on loans 1,554 — 1,554 — 1,554 Cash flow hedges 575 — 575 — 575 Bank-owned life insurance 20,705 — 20,705 — 20,705 Accrued interest receivable 6,953 6,953 — — 6,953 Financial liabilities: Demand and savings deposits 1,568,892 1,568,892 — — 1,568,892 Time deposits 400,769 — 402,981 — 402,981 Borrowings 81,807 — 85,137 — 85,137 Derivatives Interest rate swaps on loans 1,554 — 1,554 — 1,554 Accrued interest payable 434 434 — — 434 Carrying Fair Value Measurements at December 31, 2021 Classified as Total Fair (Dollars in thousands) Value Level 1 Level 2 Level 3 Value Financial assets: Cash and short-term investments $ 269,487 $ 267,745 $ 1,235 $ — $ 268,980 Securities available for sale 373,073 — 373,073 — 373,073 Loans, net 1,369,903 — — 1,379,564 1,379,564 Loans held for sale 82,295 — 82,295 — 82,295 Derivatives IRLC 1,523 — 1,523 — 1,523 Interest rate swaps on loans 3,467 — 3,467 — 3,467 Bank-owned life insurance 20,597 — 20,597 — 20,597 Accrued interest receivable 6,810 6,810 — — 6,810 Financial liabilities: Demand and savings deposits 1,488,893 1,488,893 — — 1,488,893 Time deposits 425,721 — 428,462 — 428,462 Borrowings 84,115 — 89,609 — 89,609 Derivatives Cash flow hedges 665 — 665 — 665 Interest rate swaps on loans 3,467 — 3,467 — 3,467 Forward sales of TBA securities 3 — 3 3 Accrued interest payable 715 715 — — 715 The Corporation assumes interest rate risk (the risk that general interest rate levels will change) in the normal course of operations. As a result, the fair values of the Corporation’s financial instruments will change when interest rate levels change and that change may be either favorable or unfavorable to the Corporation. Management attempts to match maturities of assets and liabilities to the extent believed necessary to balance minimizing interest rate risk and increasing net interest income in current market conditions. However, borrowers with fixed rate obligations are less likely to prepay in a rising rate environment and more likely to prepay in a falling rate environment. Conversely, depositors who are receiving fixed rates are more likely to withdraw funds before maturity in a rising rate environment and less likely to do so in a falling rate environment. Management monitors interest rates, maturities and repricing dates of assets and liabilities and attempts to manage interest rate risk by adjusting terms of new loans, deposits and borrowings and by investing in securities with terms that mitigate the Corporation’s overall interest rate risk. |
Business Segments
Business Segments | 3 Months Ended |
Mar. 31, 2022 | |
Business Segments | |
Business Segments | NOTE 9: Business Segments The Corporation operates in a decentralized fashion in three business segments: community banking, mortgage banking and consumer finance. The community banking segment comprises C&F Bank and C&F Wealth Management. 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 operating revenues consist principally 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 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 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 March 31, 2022 Community Mortgage Consumer (Dollars in thousands) Banking Banking Finance Other Eliminations Consolidated Interest income $ 15,038 $ 488 $ 9,578 $ — $ (2,873) $ 22,231 Interest expense 1,173 120 2,768 582 (2,888) 1,755 Net interest income 13,865 368 6,810 (582) 15 20,476 Gain on sales of loans — 2,708 — — (13) 2,695 Other noninterest income 3,924 1,321 66 (1,260) (17) 4,034 Net revenue 17,789 4,397 6,876 (1,842) (15) 27,205 Provision for loan losses (700) 22 350 — — (328) Noninterest expense 14,172 3,226 3,694 (867) (14) 20,211 Income (loss) before taxes 4,317 1,149 2,832 (975) (1) 7,322 Income tax expense (benefit) 800 283 770 (266) — 1,587 Net income (loss) $ 3,517 $ 866 $ 2,062 $ (709) $ (1) $ 5,735 Other data: Capital expenditures $ 1,113 $ 26 $ 17 $ — $ — $ 1,156 Depreciation and amortization $ 969 $ 63 $ 103 $ — $ — $ 1,135 Three Months Ended March 31, 2021 Community Mortgage Consumer (Dollars in thousands) Banking Banking Finance Other Eliminations Consolidated Interest income $ 15,176 $ 1,127 $ 9,249 $ — $ (2,476) $ 23,076 Interest expense 1,724 373 2,200 582 (2,479) 2,400 Net interest income 13,452 754 7,049 (582) 3 20,676 Gain on sales of loans — 7,105 — — (47) 7,058 Other noninterest income 3,687 2,724 112 511 (17) 7,017 Net revenue 17,139 10,583 7,161 (71) (61) 34,751 Provision for loan losses — 30 250 — — 280 Noninterest expense 13,771 6,987 3,448 813 — 25,019 Income (loss) before taxes 3,368 3,566 3,463 (884) (61) 9,452 Income tax expense (benefit) 575 1,021 936 (232) (13) 2,287 Net income (loss) $ 2,793 $ 2,545 $ 2,527 $ (652) $ (48) $ 7,165 Other data: Capital expenditures $ 139 $ 60 $ 1,924 $ — $ — $ 2,123 Depreciation and amortization $ 1,066 $ 68 $ 55 $ — $ — $ 1,189 Community Mortgage Consumer (Dollars in thousands) Banking Banking Finance Other Eliminations Consolidated Total assets at March 31, 2022 $ 2,166,045 $ 69,917 $ 400,338 $ 43,982 $ (378,439) $ 2,301,843 Total assets at December 31, 2021 $ 2,131,391 $ 105,547 $ 372,292 $ 44,897 $ (389,606) $ 2,264,521 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 | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingent Liabilities | |
Commitments and Contingent Liabilities | NOTE 10: Commitments and Contingent Liabilities The Corporation enters into commitments to extend credit in the normal course of business to meet the financing needs of its customers, including loan commitments and standby letters of credit. These instruments involve elements of credit and interest rate risk in excess of the amounts recorded on the Consolidated Balance Sheets. The Corporation’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit written is represented by the contractual amount of these instruments. The Corporation uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments. Collateral is obtained based on management’s credit assessment of the customer. Loan commitments are agreements to extend credit to a customer provided that there are no violations of the terms of the contract prior to funding. Commitments have fixed expiration dates or other termination clauses and may require payment of a fee by the customer. Because many of the commitments may expire without being completely drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Bank evaluates each customer’s creditworthiness on a case-by-case basis. The amount of loan commitments at the Bank was $303.06 million at March 31, 2022 and $305.37 million at December 31, 2021, which does not include IRLCs at the mortgage banking segment, which are discussed in Note 11. Standby letters of credit are written conditional commitments issued by the Bank to guarantee the performance of a customer to a third party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to customers. The total contract amount of standby letters of credit, whose contract amounts represent credit risk, was $14.37 million at March 31, 2022 and $15.11 million at December 31, 2021. 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 months ended March 31, 2022 and 2021, the Corporation recorded a reversal of provision for indemnifications of $583,000 and recorded a provision for indemnifications of $17,000, respectively, which is included in “Noninterest Expenses – Other” on the Consolidated Statements of Income. No indemnification payments were made during the three months ended March 31, 2022 or 2021. The allowance for indemnifications was $2.67 million at March 31, 2022 and $3.25 million at December 31, 2021. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2022 | |
Derivative Financial Instruments | |
Derivative Financial Instruments | NOTE 11: Derivative Financial Instruments The Corporation uses derivative financial instruments primarily to manage risks to the Corporation associated with changing interest rates, and to assist customers with their risk management objectives. The Corporation designates certain interest rate swaps as hedging instruments in qualifying cash flow hedges. The changes in fair value of these designated hedging instruments is reported as a component of other comprehensive income. Derivative contracts that are not designated in a qualifying hedging relationship include customer accommodation loan swaps and contracts related to mortgage banking activities. Cash flow hedges 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 March 31, 2022, the mortgage banking segment had $103.51 million of IRLCs and $45.36 million of unpaid principal on mortgage loans held for sale for which it managed interest rate risk using best-efforts forward sales contracts for $148.87 million in mortgage loans. At December 31, 2021, the mortgage banking segment had $80.59 million of IRLCs and $72.24 million of unpaid principal on mortgage loans held for sale for which it managed interest rate risk using best-efforts forward sales contracts for $152.83 million in mortgage loans. Also at December 31, 2021, the mortgage banking segment had $2.82 million of IRLCs and $7.40 million of unpaid principal on mortgage loans held for sale for which it managed interest rate risk using forward sales of $9.25 million of TBA securities and mandatory-delivery forward sales contracts for $1.01 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 March 31, 2022 or December 31, 2021. March 31, 2022 Notional (Dollars in thousands) Amount Assets Liabilities Cash flow hedges: Interest rate swap contracts $ 25,000 $ 575 $ — Not designated as hedges: Customer-related interest rate swap contracts: Matched interest rate swaps with borrower 72,031 350 1,204 Matched interest rate swaps with counterparty 72,031 1,204 350 Mortgage banking contracts: IRLCs 103,505 1,767 — December 31, 2021 Notional (Dollars in thousands) Amount Assets Liabilities Cash flow hedges: Interest rate swap contracts $ 25,000 $ — $ 665 Not designated as hedges: Customer-related interest rate swap contracts: Matched interest rate swaps with borrower 72,352 3,303 164 Matched interest rate swaps with counterparty 72,352 164 3,303 Mortgage banking contracts: IRLCs 83,407 1,523 — Forward sales of TBA securities 9,250 — 3 The Corporation and the Bank are required to maintain cash collateral with dealer counterparties for interest rate swap relationships in a loss position. At March 31, 2022 and at December 31, 2021, $1.44 million and $3.88 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 | 3 Months Ended |
Mar. 31, 2022 | |
Other Noninterest Expenses | |
Other Noninterest Expenses | NOTE 12: Other Noninterest Expenses The following table presents the significant components in the Consolidated Statements of Income line “Noninterest Expenses-Other.” Three Months Ended March 31, (Dollars in thousands) 2022 2021 Data processing fees $ 2,601 $ 2,903 Professional fees 752 747 Mortgage banking loan processing expenses 502 894 Marketing and advertising expenses 468 345 Travel and educational expenses 442 154 Telecommunication expenses 367 374 Provision for indemnifications (583) 17 Other real estate (gain)/loss and expenses, net — (7) All other noninterest expenses 1,597 1,619 Total other noninterest expenses $ 6,146 $ 7,046 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
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 9. |
Basis of Presentation | Basis of Presentation: |
Reclassification | Reclassification: |
Derivative Financial Instruments | Derivative Financial Instruments: |
Share-Based Compensation | Share-Based Compensation: A summary of activity for restricted stock awards during the first three months of 2022 and 2021 is presented below: 2022 Weighted- Average Grant Date Shares Fair Value Unvested, December 31, 2021 140,577 $ 48.57 Granted 15,930 50.57 Vested (14,270) 51.24 Forfeited (2,200) 48.11 Unvested, March 31, 2022 140,037 48.57 2021 Weighted- Average Grant Date Shares Fair Value Unvested, December 31, 2020 155,945 $ 48.52 Granted 18,975 43.70 Vested (16,105) 43.05 Forfeited (1,750) 45.50 Unvested, March 31, 2021 157,065 48.53 |
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 “Financial Instruments – Credit Losses (Topic 326) - Troubled Debt Restructurings and Vintage Disclosures” on expected losses to estimate credit losses on certain types of financial instruments. It also modifies the impairment model for available-for-sale debt securities and provides for a simplified accounting model for purchased financial assets with credit deterioration since their origination. The new standard will be effective for the Corporation beginning on January 1, 2023. Early adoption of the new standard is permitted. 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. In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848) – Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” This guidance provides temporary, optional expedients and exceptions to ease the potential burden in accounting for modifications of loan contracts, borrowings, hedging relationships and other transactions related to reference rate reform associated with the LIBOR transition if certain criteria are met. The amendments are effective as of March 12, 2020 through December 31, 2022, can be adopted at an instrument level. The Corporation expects to apply Topic 848 in the case of modifications to certain loans, borrowings and cash flow hedges during 2022, and that these modifications will not have a material impact on the consolidated financial statements. Other accounting standards that have been issued by the FASB or other standards-setting bodies are not currently expected to have a material effect on the Corporation’s financial position, results of operations or cash flows. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Summary of Significant Accounting Policies | |
Summary of activity for restricted stock awards | 2022 Weighted- Average Grant Date Shares Fair Value Unvested, December 31, 2021 140,577 $ 48.57 Granted 15,930 50.57 Vested (14,270) 51.24 Forfeited (2,200) 48.11 Unvested, March 31, 2022 140,037 48.57 2021 Weighted- Average Grant Date Shares Fair Value Unvested, December 31, 2020 155,945 $ 48.52 Granted 18,975 43.70 Vested (16,105) 43.05 Forfeited (1,750) 45.50 Unvested, March 31, 2021 157,065 48.53 |
Securities (Tables)
Securities (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Securities | |
Summary of available for sale debt securities | March 31, 2022 Gross Gross Amortized Unrealized Unrealized (Dollars in thousands) Cost Gains Losses Fair Value U.S. Treasury securities $ 26,730 $ — $ (519) $ 26,211 U.S. government agencies and corporations 78,291 — (5,812) 72,479 Mortgage-backed securities 207,179 111 (8,839) 198,451 Obligations of states and political subdivisions 94,312 350 (2,942) 91,720 Corporate and other debt securities 27,062 133 (524) 26,671 $ 433,574 $ 594 $ (18,636) $ 415,532 December 31, 2021 Gross Gross Amortized Unrealized Unrealized (Dollars in thousands) Cost Gains Losses Fair Value U.S. government agencies and corporations $ 69,583 $ 41 $ (1,339) $ 68,285 Mortgage-backed securities 189,985 1,565 (1,201) 190,349 Obligations of states and political subdivisions 91,304 1,642 (280) 92,666 Corporate and other debt securities 21,648 246 (121) 21,773 $ 372,520 $ 3,494 $ (2,941) $ 373,073 |
Schedule of amortized cost and estimated fair value of securities, by the earlier of contractual maturity or expected maturity | March 31, 2022 Amortized (Dollars in thousands) Cost Fair Value Due in one year or less $ 56,457 $ 53,744 Due after one year through five years 278,190 268,883 Due after five years through ten years 94,042 88,462 Due after ten years 4,885 4,443 $ 433,574 $ 415,532 |
Schedule of gross realized gains and losses and the proceeds | Three Months Ended March 31, (Dollars in thousands) 2022 2021 Realized gains from sales, maturities and calls of securities: Gross realized gains $ — $ 32 Gross realized losses — — Net realized gains $ — $ 32 Proceeds from sales, maturities, calls and paydowns of securities $ 14,629 $ 33,712 |
Schedule of securities in an unrealized loss position | Securities in an unrealized loss position at March 31, 2022, 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. Treasury securities $ 24,200 $ 519 $ — $ — $ 24,200 $ 519 U.S. government agencies and corporations 41,083 2,599 29,078 3,213 70,161 5,812 Mortgage-backed securities 151,040 7,102 26,199 1,737 177,239 8,839 Obligations of states and political subdivisions 54,328 2,408 6,875 534 61,203 2,942 Corporate and other debt securities 16,520 488 963 36 17,483 524 Total temporarily impaired securities $ 287,171 $ 13,116 $ 63,115 $ 5,520 $ 350,286 $ 18,636 Securities in an unrealized loss position at December 31, 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 $ 46,561 $ 945 $ 10,604 $ 394 $ 57,165 $ 1,339 Mortgage-backed securities 126,873 1,127 5,178 74 132,051 1,201 Obligations of states and political subdivisions 16,578 224 2,703 56 19,281 280 Corporate and other debt securities 8,925 121 — — 8,925 121 Total temporarily impaired securities $ 198,937 $ 2,417 $ 18,485 $ 524 $ 217,422 $ 2,941 |
Loans (Tables)
Loans (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Loans | |
Summary of major classifications of loans | March 31, December 31, (Dollars in thousands) 2022 2021 Real estate – residential mortgage $ 216,026 $ 217,016 Real estate – construction 1 61,302 57,495 Commercial, financial and agricultural 2 719,096 717,730 Equity lines 40,705 41,345 Consumer 7,758 8,280 Consumer finance 3 396,722 368,194 1,441,609 1,410,060 Less allowance for loan losses (39,768) (40,157) Loans, net $ 1,401,841 $ 1,369,903 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). 3 Includes the Corporation’s non-prime automobile lending and prime marine and recreational vehicle lending. |
Schedule of acquired loans | March 31, 2022 December 31, 2021 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 $ 7,098 $ 52,913 $ 60,011 $ 8,350 $ 57,862 $ 66,212 Carrying amount Real estate – residential mortgage $ 510 $ 10,281 $ 10,791 $ 817 $ 9,997 $ 10,814 Real estate – construction — — — — 1,356 1,356 Commercial, financial and agricultural 1 2,106 34,235 36,341 2,753 37,313 40,066 Equity lines 29 6,310 6,339 38 6,919 6,957 Consumer 41 1,112 1,153 47 1,213 1,260 Total acquired loans $ 2,686 $ 51,938 $ 54,624 $ 3,655 $ 56,798 $ 60,453 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) | Three Months Ended March 31, (Dollars in thousands) 2022 2021 Accretable yield, balance at beginning of period $ 3,111 $ 4,048 Accretion (363) (517) Reclassification of nonaccretable difference due to improvement in expected cash flows 378 456 Other changes, net (69) (69) Accretable yield, balance at end of period $ 3,057 $ 3,918 |
Schedule of loans on nonaccrual status | March 31, December 31, (Dollars in thousands) 2022 2021 Real estate – residential mortgage $ 342 $ 315 Commercial, financial and agricultural: Commercial business lending — 2,122 Equity lines 103 104 Consumer 2 3 Consumer finance: Automobiles 318 380 Total loans on nonaccrual status $ 765 $ 2,924 |
Schedule of past due status of loans | The past due status of loans as of March 31, 2022 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 $ 617 $ — $ 329 $ 946 $ 510 $ 214,570 $ 216,026 $ — Real estate – construction: Construction lending — — — — — 46,206 46,206 — Consumer lot lending 235 14 — 249 — 14,847 15,096 — Commercial, financial and agricultural: Commercial real estate lending 231 — — 231 2,106 523,085 525,422 — Land acquisition and development lending — — — — — 37,062 37,062 — Builder line lending — — — — — 30,915 30,915 — Commercial business lending 33 — — 33 — 125,664 125,697 — Equity lines 13 — — 13 29 40,663 40,705 — Consumer 1 — — 1 41 7,716 7,758 — Consumer finance: Automobiles 5,588 777 318 6,683 — 342,007 348,690 — Marine and recreational vehicles 81 — — 81 — 47,951 48,032 — Total $ 6,799 $ 791 $ 647 $ 8,237 $ 2,686 $ 1,430,686 $ 1,441,609 $ — 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 $118,000 and 90+ days past due of $647,000. The past due status of loans as of December 31, 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 $ 963 $ 325 $ 429 $ 1,717 $ 817 $ 214,482 $ 217,016 $ 129 Real estate – construction: Construction lending — — — — — 39,252 39,252 — Consumer lot lending — — — — — 18,243 18,243 — Commercial, financial and agricultural: Commercial real estate lending — 39 — 39 2,753 525,121 527,913 — Land acquisition and development lending — — — — — 27,609 27,609 — Builder line lending — — — — — 30,499 30,499 — Commercial business lending 8 — — 8 — 131,701 131,709 — Equity lines 55 31 49 135 38 41,172 41,345 49 Consumer 12 — — 12 47 8,221 8,280 — Consumer finance: Automobiles 6,519 1,008 380 7,907 — 314,160 322,067 — Marine and recreational vehicles 32 — — 32 — 46,095 46,127 — Total $ 7,589 $ 1,403 $ 858 $ 9,850 $ 3,655 $ 1,396,555 $ 1,410,060 $ 178 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 $2.24 million and 90+ days past due of $680,000. |
Schedule of impaired loans | Impaired loans, which included TDRs of $2.18 million, and the related allowance at March 31, 2022 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 $ 1,270 $ 439 $ 729 $ 52 $ 1,118 $ 14 Commercial, financial and agricultural: Commercial real estate lending 1,387 — 1,388 90 1,388 17 Equity lines 28 28 — — 28 — Total $ 2,685 $ 467 $ 2,117 $ 142 $ 2,534 $ 31 Impaired loans, which included TDRs of $2.69 million, and the related allowance at December 31, 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 $ 1,689 $ 550 $ 1,035 $ 63 $ 1,560 $ 64 Commercial, financial and agricultural: Commercial real estate lending 1,389 — 1,390 103 1,393 72 Commercial business lending 2,234 — 2,123 489 2,257 — Equity lines 118 110 — — 119 4 Total $ 5,430 $ 660 $ 4,548 $ 655 $ 5,329 $ 140 |
Allowance for Loan Losses (Tabl
Allowance for Loan Losses (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Allowance for Loan Losses | |
Schedule of changes in the allowance for loan losses | The following table presents the changes in the allowance for loan losses by major classification during the three months ended March 31, 2022: 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, 2021 $ 2,660 $ 856 $ 11,085 $ 593 $ 172 $ 24,791 $ 40,157 Provision (credited) charged to operations (38) 37 (636) (49) 8 350 (328) Loans charged off — — (11) — (48) (1,313) (1,372) Recoveries of loans previously charged off 6 — 2 — 32 1,271 1,311 Balance at March 31, 2022 $ 2,628 $ 893 $ 10,440 $ 544 $ 164 $ 25,099 $ 39,768 The following table presents the changes in the allowance for loan losses by major classification during the three months ended March 31, 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 charged (credited) to operations (28) (153) 311 (16) (84) 250 280 Loans charged off — — — — (45) (1,651) (1,696) Recoveries of loans previously charged off 7 — — — 35 1,251 1,293 Balance at March 31, 2021 $ 2,893 $ 822 $ 11,007 $ 671 $ 277 $ 23,363 $ 39,033 |
Schedule of balance of the allowance for loan losses and the allowance by impairment methodology | The following table presents, as of March 31, 2022, 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 $ 52 $ — $ 90 $ — $ — $ — $ 142 Collectively evaluated for impairment 2,576 893 10,350 544 164 25,099 39,626 Acquired loans - PCI — — — — — — — Total allowance $ 2,628 $ 893 $ 10,440 $ 544 $ 164 $ 25,099 $ 39,768 Loans: Individually evaluated for impairment $ 1,168 $ — $ 1,388 $ 28 $ — $ — $ 2,584 Collectively evaluated for impairment 214,348 61,302 715,602 40,648 7,717 396,722 1,436,339 Acquired loans - PCI 510 — 2,106 29 41 — 2,686 Total loans $ 216,026 $ 61,302 $ 719,096 $ 40,705 $ 7,758 $ 396,722 $ 1,441,609 The following table presents, as of December 31, 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 $ 63 $ — $ 592 $ — $ — $ — $ 655 Collectively evaluated for impairment 2,597 856 10,493 593 172 24,791 39,502 Acquired loans - PCI — — — — — — — Total allowance $ 2,660 $ 856 $ 11,085 $ 593 $ 172 $ 24,791 $ 40,157 Loans: Individually evaluated for impairment $ 1,585 $ — $ 3,513 $ 110 $ — $ — $ 5,208 Collectively evaluated for impairment 214,614 57,495 711,464 41,197 8,233 368,194 1,401,197 Acquired loans - PCI 817 — 2,753 38 47 — 3,655 Total loans $ 217,016 $ 57,495 $ 717,730 $ 41,345 $ 8,280 $ 368,194 $ 1,410,060 |
Schedule of loans by credit quality indicators | Loans by credit quality indicators as of March 31, 2022 were as follows: Special Substandard (Dollars in thousands) Pass Mention Substandard Nonaccrual Total 1 Real estate – residential mortgage $ 214,505 $ 509 $ 670 $ 342 $ 216,026 Real estate – construction: Construction lending 46,206 — — — 46,206 Consumer lot lending 15,096 — — — 15,096 Commercial, financial and agricultural: Commercial real estate lending 517,441 2,057 5,924 — 525,422 Land acquisition and development lending 37,062 — — — 37,062 Builder line lending 30,915 — — — 30,915 Commercial business lending 125,697 — — — 125,697 Equity lines 40,578 10 14 103 40,705 Consumer 7,756 — — 2 7,758 $ 1,035,256 $ 2,576 $ 6,608 $ 447 $ 1,044,887 1 At March 31, 2022, the Corporation did not have any loans classified as Doubtful or Loss. Non- (Dollars in thousands) Performing Performing Total Consumer finance: Automobiles $ 348,372 $ 318 $ 348,690 Marine and recreational vehicles 48,032 - 48,032 $ 396,404 $ 318 $ 396,722 Loans by credit quality indicators as of December 31, 2021 were as follows: Special Substandard (Dollars in thousands) Pass Mention Substandard Nonaccrual Total 1 Real estate – residential mortgage $ 215,432 $ 664 $ 605 $ 315 $ 217,016 Real estate – construction: Construction lending 39,252 — — — 39,252 Consumer lot lending 18,243 — — — 18,243 Commercial, financial and agricultural: Commercial real estate lending 519,938 1,989 5,986 — 527,913 Land acquisition and development lending 27,609 — — — 27,609 Builder line lending 30,499 — — — 30,499 Commercial business lending 129,587 — — 2,122 131,709 Equity lines 41,013 47 181 104 41,345 Consumer 8,276 — 1 3 8,280 $ 1,029,849 $ 2,700 $ 6,773 $ 2,544 $ 1,041,866 1 At December 31, 2021, the Corporation did not have any loans classified as Doubtful or Loss. Non- (Dollars in thousands) Performing Performing Total Consumer finance: Automobiles $ 321,687 $ 380 $ 322,067 Marine and recreational vehicles 46,127 - 46,127 $ 367,814 $ 380 $ 368,194 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Other Intangible Assets | |
Schedule of gross carrying amounts and accumulated amortization of other intangible assets | March 31, December 31, 2022 2021 Gross Gross Carrying Accumulated Carrying Accumulated (Dollars in thousands) Amount Amortization Amount Amortization Amortizable intangible assets: Core deposit intangibles $ 1,711 $ (360) $ 1,711 $ (325) Other amortizable intangibles 1,405 (854) 1,405 (814) Total $ 3,116 $ (1,214) $ 3,116 $ (1,139) |
Equity, Other Comprehensive I_2
Equity, Other Comprehensive Income (Loss) and Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Equity, Other Comprehensive Income (Loss) and Earnings Per Share | |
Schedule of the components of accumulated other comprehensive loss, net of deferred taxes | Securities Defined Cash Available Benefit Flow (Dollars in thousands) For Sale Plan Hedges Total Accumulated other comprehensive income (loss) at December 31, 2021 $ 437 $ (2,055) $ (469) $ (2,087) Net (loss) income arising during the period (18,595) — 1,240 (17,355) Related income tax effects 3,905 — (319) 3,586 (14,690) — 921 (13,769) Reclassifications into net income — (8) (2) (10) Related income tax effects — 1 1 2 — (7) (1) (8) Other comprehensive (loss) income, net of tax (14,690) (7) 920 (13,777) Accumulated other comprehensive (loss) income at March 31, 2022 $ (14,253) $ (2,062) $ 451 $ (15,864) Securities Defined Cash Available Benefit Flow (Dollars in thousands) For Sale Plan Hedges Total Accumulated other comprehensive income (loss) at December 31, 2020 $ 4,397 $ (4,985) $ (1,367) $ (1,955) Net (loss) income arising during the period (2,971) — 990 (1,981) Related income tax effects 623 — (255) 368 (2,348) — 735 (1,613) Reclassifications into net income (32) 43 (2) 9 Related income tax effects 7 (9) 1 (1) (25) 34 (1) 8 Other comprehensive (loss) income, net of tax (2,373) 34 734 (1,605) Accumulated other comprehensive income (loss) at March 31, 2021 $ 2,024 $ (4,951) $ (633) $ (3,560) |
Schedule of reclassifications from accumulated other comprehensive loss | Three Months Ended March 31, Line Item In the (Dollars in thousands) 2022 2021 Consolidated Statements of Income Securities available for sale: Reclassification of net realized gains into net income $ — $ 32 Net gains on sales, maturities and calls of available for sale securities Related income tax effects — (7) Income tax expense — 25 Net of tax Defined benefit plan: 1 Reclassification of recognized net actuarial losses into net income (9) (60) Noninterest expenses - Other Amortization of prior service credit into net income 17 17 Noninterest expenses - Other Related income tax effects (1) 9 Income tax expense 7 (34) Net of tax Csah flow hedges: Amortization of hedging gains into net income 2 2 Interest expense - Trust preferred capital notes Related income tax effects (1) (1) Income tax expense 1 1 Net of tax Total reclassifications into net income $ 8 $ (8) |
Schedule of components earnings per share calculations | Three Months Ended March 31, (Dollars in thousands) 2022 2021 Net income attributable to C&F Financial Corporation $ 5,629 $ 7,061 Weighted average shares outstanding — 3,547,780 3,676,067 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Employee Benefit Plans | |
Schedule of net periodic benefit costs | Three Months Ended March 31, (Dollars in thousands) 2022 2021 Components of net periodic benefit cost: Service cost, included in salaries and employee benefits $ 479 $ 487 Other components of net periodic benefit cost: Interest cost 124 116 Expected return on plan assets (418) (440) Amortization of prior service credit (17) (17) Recognized net actuarial losses 9 60 Other components of net periodic benefit cost, included in other noninterest expense (302) (281) Net periodic benefit cost $ 177 $ 206 |
Fair Value of Assets and Liab_2
Fair Value of Assets and Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value of Assets and Liabilities | |
Schedule of balances of financial assets and liabilities measured at fair value on a recurring basis | March 31, 2022 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. Treasury securities $ — $ 26,211 $ — $ 26,211 U.S. government agencies and corporations — 72,479 — 72,479 Mortgage-backed securities — 198,451 — 198,451 Obligations of states and political subdivisions — 91,720 — 91,720 Corporate and other debt securities — 26,671 — 26,671 Total securities available for sale — 415,532 — 415,532 Loans held for sale — 46,659 — 46,659 Derivatives IRLC — 1,767 — 1,767 Interest rate swaps on loans — 1,554 — 1,554 Cash flow hedges — 575 — 575 Total assets $ — $ 466,087 $ — $ 466,087 Liabilities: Derivatives Interest rate swaps on loans $ — $ 1,554 $ — $ 1,554 Total liabilities $ — $ 1,554 $ — $ 1,554 December 31, 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 $ — $ 68,285 $ — $ 68,285 Mortgage-backed securities — 190,349 — 190,349 Obligations of states and political subdivisions — 92,666 — 92,666 Corporate and other debt securities — 21,773 — 21,773 Total securities available for sale — 373,073 — 373,073 Loans held for sale — 82,295 — 82,295 Derivatives IRLC — 1,523 — 1,523 Interest rate swaps on loans — 3,467 — 3,467 Total assets $ — $ 460,358 $ — $ 460,358 Liabilities: Derivatives Interest rate swaps on loans $ — $ 3,467 $ — $ 3,467 Cash flow hedges — 665 — 665 Forward sales of TBA securities — 3 — 3 Total liabilities $ — $ 4,135 $ — $ 4,135 |
Schedule of carrying amounts and estimated fair values of financial instruments | Carrying Fair Value Measurements at March 31, 2022 Classified as Total Fair (Dollars in thousands) Value Level 1 Level 2 Level 3 Value Financial assets: Cash and short-term investments $ 270,928 $ 268,938 $ 1,468 $ — $ 270,406 Securities available for sale 415,532 — 415,532 — 415,532 Loans, net 1,401,841 — — 1,405,244 1,405,244 Loans held for sale 46,659 — 46,659 — 46,659 Derivatives IRLC 1,767 — 1,767 — 1,767 Interest rate swaps on loans 1,554 — 1,554 — 1,554 Cash flow hedges 575 — 575 — 575 Bank-owned life insurance 20,705 — 20,705 — 20,705 Accrued interest receivable 6,953 6,953 — — 6,953 Financial liabilities: Demand and savings deposits 1,568,892 1,568,892 — — 1,568,892 Time deposits 400,769 — 402,981 — 402,981 Borrowings 81,807 — 85,137 — 85,137 Derivatives Interest rate swaps on loans 1,554 — 1,554 — 1,554 Accrued interest payable 434 434 — — 434 Carrying Fair Value Measurements at December 31, 2021 Classified as Total Fair (Dollars in thousands) Value Level 1 Level 2 Level 3 Value Financial assets: Cash and short-term investments $ 269,487 $ 267,745 $ 1,235 $ — $ 268,980 Securities available for sale 373,073 — 373,073 — 373,073 Loans, net 1,369,903 — — 1,379,564 1,379,564 Loans held for sale 82,295 — 82,295 — 82,295 Derivatives IRLC 1,523 — 1,523 — 1,523 Interest rate swaps on loans 3,467 — 3,467 — 3,467 Bank-owned life insurance 20,597 — 20,597 — 20,597 Accrued interest receivable 6,810 6,810 — — 6,810 Financial liabilities: Demand and savings deposits 1,488,893 1,488,893 — — 1,488,893 Time deposits 425,721 — 428,462 — 428,462 Borrowings 84,115 — 89,609 — 89,609 Derivatives Cash flow hedges 665 — 665 — 665 Interest rate swaps on loans 3,467 — 3,467 — 3,467 Forward sales of TBA securities 3 — 3 3 Accrued interest payable 715 715 — — 715 |
Business Segments (Tables)
Business Segments (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Business Segments | |
Schedule of segment reporting information, by segment | Three Months Ended March 31, 2022 Community Mortgage Consumer (Dollars in thousands) Banking Banking Finance Other Eliminations Consolidated Interest income $ 15,038 $ 488 $ 9,578 $ — $ (2,873) $ 22,231 Interest expense 1,173 120 2,768 582 (2,888) 1,755 Net interest income 13,865 368 6,810 (582) 15 20,476 Gain on sales of loans — 2,708 — — (13) 2,695 Other noninterest income 3,924 1,321 66 (1,260) (17) 4,034 Net revenue 17,789 4,397 6,876 (1,842) (15) 27,205 Provision for loan losses (700) 22 350 — — (328) Noninterest expense 14,172 3,226 3,694 (867) (14) 20,211 Income (loss) before taxes 4,317 1,149 2,832 (975) (1) 7,322 Income tax expense (benefit) 800 283 770 (266) — 1,587 Net income (loss) $ 3,517 $ 866 $ 2,062 $ (709) $ (1) $ 5,735 Other data: Capital expenditures $ 1,113 $ 26 $ 17 $ — $ — $ 1,156 Depreciation and amortization $ 969 $ 63 $ 103 $ — $ — $ 1,135 Three Months Ended March 31, 2021 Community Mortgage Consumer (Dollars in thousands) Banking Banking Finance Other Eliminations Consolidated Interest income $ 15,176 $ 1,127 $ 9,249 $ — $ (2,476) $ 23,076 Interest expense 1,724 373 2,200 582 (2,479) 2,400 Net interest income 13,452 754 7,049 (582) 3 20,676 Gain on sales of loans — 7,105 — — (47) 7,058 Other noninterest income 3,687 2,724 112 511 (17) 7,017 Net revenue 17,139 10,583 7,161 (71) (61) 34,751 Provision for loan losses — 30 250 — — 280 Noninterest expense 13,771 6,987 3,448 813 — 25,019 Income (loss) before taxes 3,368 3,566 3,463 (884) (61) 9,452 Income tax expense (benefit) 575 1,021 936 (232) (13) 2,287 Net income (loss) $ 2,793 $ 2,545 $ 2,527 $ (652) $ (48) $ 7,165 Other data: Capital expenditures $ 139 $ 60 $ 1,924 $ — $ — $ 2,123 Depreciation and amortization $ 1,066 $ 68 $ 55 $ — $ — $ 1,189 Community Mortgage Consumer (Dollars in thousands) Banking Banking Finance Other Eliminations Consolidated Total assets at March 31, 2022 $ 2,166,045 $ 69,917 $ 400,338 $ 43,982 $ (378,439) $ 2,301,843 Total assets at December 31, 2021 $ 2,131,391 $ 105,547 $ 372,292 $ 44,897 $ (389,606) $ 2,264,521 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Derivative Financial Instruments | |
Schedule of key elements of derivative instruments other than forward sales of mortgage loans | March 31, 2022 Notional (Dollars in thousands) Amount Assets Liabilities Cash flow hedges: Interest rate swap contracts $ 25,000 $ 575 $ — Not designated as hedges: Customer-related interest rate swap contracts: Matched interest rate swaps with borrower 72,031 350 1,204 Matched interest rate swaps with counterparty 72,031 1,204 350 Mortgage banking contracts: IRLCs 103,505 1,767 — December 31, 2021 Notional (Dollars in thousands) Amount Assets Liabilities Cash flow hedges: Interest rate swap contracts $ 25,000 $ — $ 665 Not designated as hedges: Customer-related interest rate swap contracts: Matched interest rate swaps with borrower 72,352 3,303 164 Matched interest rate swaps with counterparty 72,352 164 3,303 Mortgage banking contracts: IRLCs 83,407 1,523 — Forward sales of TBA securities 9,250 — 3 |
Other Noninterest Expenses (Tab
Other Noninterest Expenses (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Other Noninterest Expenses | |
Schedule of other noninterest expense | Three Months Ended March 31, (Dollars in thousands) 2022 2021 Data processing fees $ 2,601 $ 2,903 Professional fees 752 747 Mortgage banking loan processing expenses 502 894 Marketing and advertising expenses 468 345 Travel and educational expenses 442 154 Telecommunication expenses 367 374 Provision for indemnifications (583) 17 Other real estate (gain)/loss and expenses, net — (7) All other noninterest expenses 1,597 1,619 Total other noninterest expenses $ 6,146 $ 7,046 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Nature of Operations and Business Combination (Details) | Mar. 31, 2022subsidiary |
C&F Bank | |
Nature of Operations | |
Number of wholly owned subsidiaries | 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 - Share-Based Compensation (Details) - Restricted Stock - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Share-based compensation | ||
Compensation expense before tax | $ 511,000 | $ 392,000 |
Compensation expense after tax | 365,000 | $ 287,000 |
Unrecognized compensation expense | $ 3,950,000 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Restricted Stock Activity (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Shares | ||
Unvested, beginning of period (in shares) | 140,577 | |
Unvested, end of period (in shares) | 140,037 | |
Restricted Stock | ||
Shares | ||
Unvested, beginning of period (in shares) | 140,577 | 155,945 |
Granted (in shares) | 15,930 | 18,975 |
Vested (in shares) | (14,270) | (16,105) |
Forfeited (in shares) | (2,200) | (1,750) |
Unvested, end of period (in shares) | 140,037 | 157,065 |
Weighted-Average Grant Date Fair Value | ||
Nonvested, beginning of period (in dollars per share) | $ 48.57 | $ 48.52 |
Granted (in dollars per share) | 50.57 | 43.70 |
Vested (in dollars per share) | 51.24 | 43.05 |
Forfeited (in dollars per share) | 48.11 | 45.50 |
Nonvested, end of period (in dollars per share) | $ 48.57 | $ 48.53 |
Securities - Available for sale
Securities - Available for sale Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 433,574 | $ 372,520 |
Gross Unrealized Gains | 594 | 3,494 |
Gross Unrealized Losses | (18,636) | (2,941) |
Fair Value | 415,532 | 373,073 |
U.S. Treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 26,730 | |
Gross Unrealized Losses | (519) | |
Fair Value | 26,211 | |
U.S. government agencies and corporations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 78,291 | 69,583 |
Gross Unrealized Gains | 41 | |
Gross Unrealized Losses | (5,812) | (1,339) |
Fair Value | 72,479 | 68,285 |
Mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 207,179 | 189,985 |
Gross Unrealized Gains | 111 | 1,565 |
Gross Unrealized Losses | (8,839) | (1,201) |
Fair Value | 198,451 | 190,349 |
Obligations of states and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 94,312 | 91,304 |
Gross Unrealized Gains | 350 | 1,642 |
Gross Unrealized Losses | (2,942) | (280) |
Fair Value | 91,720 | 92,666 |
Corporate and other debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 27,062 | 21,648 |
Gross Unrealized Gains | 133 | 246 |
Gross Unrealized Losses | (524) | (121) |
Fair Value | $ 26,671 | $ 21,773 |
Securities - Maturities and Rea
Securities - Maturities and Realized Gains and Losses (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022USD ($)item | Mar. 31, 2021USD ($) | Dec. 31, 2021USD ($) | |
Amortized Cost | |||
Due in one year or less | $ 56,457 | ||
Due after one year through five years | 278,190 | ||
Due after five years through ten years | 94,042 | ||
Due after ten years | 4,885 | ||
Amortized Cost | 433,574 | $ 372,520 | |
Fair Value | |||
Due in one year or less | 53,744 | ||
Due after one year through five years | 268,883 | ||
Due after five years through ten years | 88,462 | ||
Due after ten years | 4,443 | ||
Fair Value | $ 415,532 | $ 373,073 | |
Realized Gains and Losses | |||
Number of securities sales | item | 0 | ||
Proceeds from sales of securities | $ 2,300 | ||
Gross realized gains | 32 | ||
Net realized gains | 32 | ||
Proceeds from sales, maturities, calls and paydowns of securities | $ 14,629 | $ 33,712 |
Securities - Pledged as Collate
Securities - Pledged as Collateral (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Available for sale securities | ||
Amortized Cost | $ 433,574 | $ 372,520 |
Fair Value | 415,532 | 373,073 |
Securities Pledged as Collateral | ||
Available for sale securities | ||
Amortized Cost | 185,480 | 185,250 |
Fair Value | $ 177,400 | $ 186,220 |
Securities - Unrealized Loss Po
Securities - Unrealized Loss Positions (Details) | 3 Months Ended | |
Mar. 31, 2022USD ($)security | Dec. 31, 2021USD ($) | |
Fair value | ||
Less Than 12 Months, Fair Value | $ 287,171,000 | $ 198,937,000 |
12 Months or More, Fair Value | 63,115,000 | 18,485,000 |
Total Fair Value | 350,286,000 | 217,422,000 |
Unrealized Loss | ||
Less Than 12 Months, Unrealized Loss | 13,116,000 | 2,417,000 |
12 Months or More, Unrealized Loss | 5,520,000 | 524,000 |
Total Unrealized Loss | $ 18,636,000 | 2,941,000 |
Other information | ||
Number of positions considered temporarily impaired | security | 390 | |
Number of position significant relative to carrying value | 0 | |
Debt securities considered temporarily impaired | $ 350,286,000 | 217,422,000 |
Other than temporary impairment | 0 | |
U.S. Treasury securities | ||
Fair value | ||
Less Than 12 Months, Fair Value | 24,200,000 | |
Total Fair Value | 24,200,000 | |
Unrealized Loss | ||
Less Than 12 Months, Unrealized Loss | 519,000 | |
Total Unrealized Loss | 519,000 | |
Other information | ||
Debt securities considered temporarily impaired | 24,200,000 | |
U.S. government agencies and corporations | ||
Fair value | ||
Less Than 12 Months, Fair Value | 41,083,000 | 46,561,000 |
12 Months or More, Fair Value | 29,078,000 | 10,604,000 |
Total Fair Value | 70,161,000 | 57,165,000 |
Unrealized Loss | ||
Less Than 12 Months, Unrealized Loss | 2,599,000 | 945,000 |
12 Months or More, Unrealized Loss | 3,213,000 | 394,000 |
Total Unrealized Loss | 5,812,000 | 1,339,000 |
Other information | ||
Debt securities considered temporarily impaired | 70,161,000 | 57,165,000 |
Mortgage-backed securities | ||
Fair value | ||
Less Than 12 Months, Fair Value | 151,040,000 | 126,873,000 |
12 Months or More, Fair Value | 26,199,000 | 5,178,000 |
Total Fair Value | 177,239,000 | 132,051,000 |
Unrealized Loss | ||
Less Than 12 Months, Unrealized Loss | 7,102,000 | 1,127,000 |
12 Months or More, Unrealized Loss | 1,737,000 | 74,000 |
Total Unrealized Loss | 8,839,000 | 1,201,000 |
Other information | ||
Debt securities considered temporarily impaired | 177,239,000 | 132,051,000 |
Obligations of states and political subdivisions | ||
Fair value | ||
Less Than 12 Months, Fair Value | 54,328,000 | 16,578,000 |
12 Months or More, Fair Value | 6,875,000 | 2,703,000 |
Total Fair Value | 61,203,000 | 19,281,000 |
Unrealized Loss | ||
Less Than 12 Months, Unrealized Loss | 2,408,000 | 224,000 |
12 Months or More, Unrealized Loss | 534,000 | 56,000 |
Total Unrealized Loss | 2,942,000 | 280,000 |
Other information | ||
Debt securities considered temporarily impaired | 61,203,000 | 19,281,000 |
Corporate and other debt securities | ||
Fair value | ||
Less Than 12 Months, Fair Value | 16,520,000 | 8,925,000 |
12 Months or More, Fair Value | 963,000 | |
Total Fair Value | 17,483,000 | 8,925,000 |
Unrealized Loss | ||
Less Than 12 Months, Unrealized Loss | 488,000 | 121,000 |
12 Months or More, Unrealized Loss | 36,000 | |
Total Unrealized Loss | 524,000 | 121,000 |
Other information | ||
Debt securities considered temporarily impaired | $ 17,483,000 | $ 8,925,000 |
Securities - Restricted Stocks
Securities - Restricted Stocks and others (Details) | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Securities | |
Investment in restricted stock | $ 1,120,000 |
Restricted stocks, other-than-temporary impairment | $ 0 |
Loans - Major Classifications o
Loans - Major Classifications of Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Loans | ||
Loans | $ 1,441,609 | $ 1,410,060 |
Less allowance for loan losses | (39,768) | (40,157) |
Loans, net | 1,401,841 | 1,369,903 |
Real Estate Residential Mortgage | ||
Loans | ||
Loans | 216,026 | 217,016 |
Real Estate Construction | ||
Loans | ||
Loans | 61,302 | 57,495 |
Commercial, Financial & Agricultural | ||
Loans | ||
Loans | 719,096 | 717,730 |
Equity lines | ||
Loans | ||
Loans | 40,705 | 41,345 |
Consumer | ||
Loans | ||
Loans | 7,758 | 8,280 |
Amount included related to demand deposit overdrafts | 235 | 207 |
Consumer Finance | ||
Loans | ||
Loans | $ 396,722 | $ 368,194 |
Loans - Loans Acquired (Details
Loans - Loans Acquired (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Loans | ||
Outstanding principal balance | $ 60,011 | $ 66,212 |
Carrying amount | ||
Total acquired loans | 54,624 | 60,453 |
Real Estate Residential Mortgage | ||
Carrying amount | ||
Total acquired loans | 10,791 | 10,814 |
Real Estate Construction | ||
Carrying amount | ||
Total acquired loans | 1,356 | |
Commercial, Financial & Agricultural | ||
Carrying amount | ||
Total acquired loans | 36,341 | 40,066 |
Equity lines | ||
Carrying amount | ||
Total acquired loans | 6,339 | 6,957 |
Consumer | ||
Carrying amount | ||
Total acquired loans | 1,153 | 1,260 |
PCI Loans | ||
Loans | ||
Outstanding principal balance | 7,098 | 8,350 |
Carrying amount | ||
Total acquired loans | 2,686 | 3,655 |
PCI Loans | Real Estate Residential Mortgage | ||
Carrying amount | ||
Total acquired loans | 510 | 817 |
PCI Loans | Commercial, Financial & Agricultural | ||
Carrying amount | ||
Total acquired loans | 2,106 | 2,753 |
PCI Loans | Equity lines | ||
Carrying amount | ||
Total acquired loans | 29 | 38 |
PCI Loans | Consumer | ||
Carrying amount | ||
Total acquired loans | 41 | 47 |
Purchased Performing | ||
Loans | ||
Outstanding principal balance | 52,913 | 57,862 |
Carrying amount | ||
Total acquired loans | 51,938 | 56,798 |
Purchased Performing | Real Estate Residential Mortgage | ||
Carrying amount | ||
Total acquired loans | 10,281 | 9,997 |
Purchased Performing | Real Estate Construction | ||
Carrying amount | ||
Total acquired loans | 1,356 | |
Purchased Performing | Commercial, Financial & Agricultural | ||
Carrying amount | ||
Total acquired loans | 34,235 | 37,313 |
Purchased Performing | Equity lines | ||
Carrying amount | ||
Total acquired loans | 6,310 | 6,919 |
Purchased Performing | Consumer | ||
Carrying amount | ||
Total acquired loans | $ 1,112 | $ 1,213 |
Loans - Change in Accretable Yi
Loans - Change in Accretable Yield (Details) - PCI Loans - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Change in the accretable yield | ||
Accretable yield, balance at beginning of period | $ 3,111 | $ 4,048 |
Accretion | (363) | (517) |
Reclassification of nonaccreatable difference due to improvement in expected cash flows | 378 | 456 |
Other changes, net | (69) | (69) |
Accretable yield, balance at end of period | $ 3,057 | $ 3,918 |
Loans - Loans on Nonaccrual Sta
Loans - Loans on Nonaccrual Status (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Loans on nonaccrual status | ||
Loans on nonaccrual status | $ 765 | $ 2,924 |
Automobiles | ||
Loans on nonaccrual status | ||
Loans on nonaccrual status | 318 | 380 |
Real Estate Residential Mortgage | ||
Loans on nonaccrual status | ||
Loans on nonaccrual status | 342 | 315 |
Commercial, Financial & Agricultural | Commercial business lending | ||
Loans on nonaccrual status | ||
Loans on nonaccrual status | 2,122 | |
Equity lines | ||
Loans on nonaccrual status | ||
Loans on nonaccrual status | 103 | 104 |
Consumer | ||
Loans on nonaccrual status | ||
Loans on nonaccrual status | $ 2 | $ 3 |
Loans - Past Due Status (Detail
Loans - Past Due Status (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 |
Past due status of loans | |||
Total loans | $ 1,441,609 | $ 1,410,060 | |
90+ days past due and accruing | 178 | ||
Current, nonaccrual status | 118,000,000 | 2,240 | |
Nonaccrual loans, 90+ days past due | 647 | 680 | |
PCI | |||
Past due status of loans | |||
Total loans | 2,686 | 3,655 | |
30-59 Days Past Due | |||
Past due status of loans | |||
Total loans | 6,799 | 7,589 | |
60-89 Days Past Due | |||
Past due status of loans | |||
Total loans | 791 | 1,403 | |
90+ Days Past Due | |||
Past due status of loans | |||
Total loans | 647 | 858 | |
Total Past Due | |||
Past due status of loans | |||
Total loans | 8,237 | 9,850 | |
Current | |||
Past due status of loans | |||
Total loans | 1,430,686 | 1,396,555 | |
Real Estate Residential Mortgage | |||
Past due status of loans | |||
Total loans | 216,026 | 217,016 | |
90+ days past due and accruing | 129 | ||
Recorded Investment | $ 4,000 | ||
Real Estate Residential Mortgage | PCI | |||
Past due status of loans | |||
Total loans | 510 | 817 | |
Real Estate Residential Mortgage | 30-59 Days Past Due | |||
Past due status of loans | |||
Total loans | 617 | 963 | |
Real Estate Residential Mortgage | 60-89 Days Past Due | |||
Past due status of loans | |||
Total loans | 325 | ||
Real Estate Residential Mortgage | 90+ Days Past Due | |||
Past due status of loans | |||
Total loans | 329 | 429 | |
Real Estate Residential Mortgage | Total Past Due | |||
Past due status of loans | |||
Total loans | 946 | 1,717 | |
Real Estate Residential Mortgage | Current | |||
Past due status of loans | |||
Total loans | 214,570 | 214,482 | |
Real Estate Construction | |||
Past due status of loans | |||
Total loans | 61,302 | 57,495 | |
Commercial, Financial & Agricultural | |||
Past due status of loans | |||
Total loans | 719,096 | 717,730 | |
Equity lines | |||
Past due status of loans | |||
Total loans | 40,705 | 41,345 | |
90+ days past due and accruing | 49 | ||
Equity lines | PCI | |||
Past due status of loans | |||
Total loans | 29 | 38 | |
Equity lines | 30-59 Days Past Due | |||
Past due status of loans | |||
Total loans | 13 | 55 | |
Equity lines | 60-89 Days Past Due | |||
Past due status of loans | |||
Total loans | 31 | ||
Equity lines | 90+ Days Past Due | |||
Past due status of loans | |||
Total loans | 49 | ||
Equity lines | Total Past Due | |||
Past due status of loans | |||
Total loans | 13 | 135 | |
Equity lines | Current | |||
Past due status of loans | |||
Total loans | 40,663 | 41,172 | |
Consumer | |||
Past due status of loans | |||
Total loans | 7,758 | 8,280 | |
Consumer | PCI | |||
Past due status of loans | |||
Total loans | 41 | 47 | |
Consumer | 30-59 Days Past Due | |||
Past due status of loans | |||
Total loans | 1 | 12 | |
Consumer | Total Past Due | |||
Past due status of loans | |||
Total loans | 1 | 12 | |
Consumer | Current | |||
Past due status of loans | |||
Total loans | 7,716 | 8,221 | |
Consumer Finance | |||
Past due status of loans | |||
Total loans | 396,722 | 368,194 | |
Construction lending | Real Estate Construction | |||
Past due status of loans | |||
Total loans | 46,206 | 39,252 | |
Construction lending | Real Estate Construction | Current | |||
Past due status of loans | |||
Total loans | 46,206 | 39,252 | |
Consumer lot lending | Real Estate Construction | |||
Past due status of loans | |||
Total loans | 15,096 | 18,243 | |
Consumer lot lending | Real Estate Construction | 30-59 Days Past Due | |||
Past due status of loans | |||
Total loans | 235 | ||
Consumer lot lending | Real Estate Construction | 60-89 Days Past Due | |||
Past due status of loans | |||
Total loans | 14 | ||
Consumer lot lending | Real Estate Construction | Total Past Due | |||
Past due status of loans | |||
Total loans | 249 | ||
Consumer lot lending | Real Estate Construction | Current | |||
Past due status of loans | |||
Total loans | 14,847 | 18,243 | |
Commercial real estate lending | Commercial, Financial & Agricultural | |||
Past due status of loans | |||
Total loans | 525,422 | 527,913 | |
Commercial real estate lending | Commercial, Financial & Agricultural | PCI | |||
Past due status of loans | |||
Total loans | 2,106 | 2,753 | |
Commercial real estate lending | Commercial, Financial & Agricultural | 30-59 Days Past Due | |||
Past due status of loans | |||
Total loans | 231 | ||
Commercial real estate lending | Commercial, Financial & Agricultural | 60-89 Days Past Due | |||
Past due status of loans | |||
Total loans | 39 | ||
Commercial real estate lending | Commercial, Financial & Agricultural | Total Past Due | |||
Past due status of loans | |||
Total loans | 231 | 39 | |
Commercial real estate lending | Commercial, Financial & Agricultural | Current | |||
Past due status of loans | |||
Total loans | 523,085 | 525,121 | |
Land acquisition & development lending | Commercial, Financial & Agricultural | |||
Past due status of loans | |||
Total loans | 37,062 | 27,609 | |
Land acquisition & development lending | Commercial, Financial & Agricultural | Current | |||
Past due status of loans | |||
Total loans | 37,062 | 27,609 | |
Builder line lending | Commercial, Financial & Agricultural | |||
Past due status of loans | |||
Total loans | 30,915 | 30,499 | |
Builder line lending | Commercial, Financial & Agricultural | Current | |||
Past due status of loans | |||
Total loans | 30,915 | 30,499 | |
Commercial business lending | Commercial, Financial & Agricultural | |||
Past due status of loans | |||
Total loans | 125,697 | 131,709 | |
Commercial business lending | Commercial, Financial & Agricultural | 30-59 Days Past Due | |||
Past due status of loans | |||
Total loans | 33 | 8 | |
Commercial business lending | Commercial, Financial & Agricultural | Total Past Due | |||
Past due status of loans | |||
Total loans | 33 | 8 | |
Commercial business lending | Commercial, Financial & Agricultural | Current | |||
Past due status of loans | |||
Total loans | 125,664 | 131,701 | |
Automobiles | Consumer Finance | |||
Past due status of loans | |||
Total loans | 348,690 | 322,067 | |
Automobiles | Consumer Finance | 30-59 Days Past Due | |||
Past due status of loans | |||
Total loans | 5,588 | 6,519 | |
Automobiles | Consumer Finance | 60-89 Days Past Due | |||
Past due status of loans | |||
Total loans | 777 | 1,008 | |
Automobiles | Consumer Finance | 90+ Days Past Due | |||
Past due status of loans | |||
Total loans | 318 | 380 | |
Automobiles | Consumer Finance | Total Past Due | |||
Past due status of loans | |||
Total loans | 6,683 | 7,907 | |
Automobiles | Consumer Finance | Current | |||
Past due status of loans | |||
Total loans | 342,007 | 314,160 | |
Marine and recreational vehicles | Consumer Finance | |||
Past due status of loans | |||
Total loans | 48,032 | 46,127 | |
Marine and recreational vehicles | Consumer Finance | 30-59 Days Past Due | |||
Past due status of loans | |||
Total loans | 81 | 32 | |
Marine and recreational vehicles | Consumer Finance | Total Past Due | |||
Past due status of loans | |||
Total loans | 81 | 32 | |
Marine and recreational vehicles | Consumer Finance | Current | |||
Past due status of loans | |||
Total loans | $ 47,951 | $ 46,095 |
Loans - Troubled Debt Restructu
Loans - Troubled Debt Restructurings (Details) | 3 Months Ended | |
Mar. 31, 2022USD ($)loan | Mar. 31, 2021USD ($)loan | |
Loan modifications classified as troubled debt restructurings | ||
Number of Loans | 0 | |
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 |
Real Estate Residential Mortgage | ||
Loan modifications classified as troubled debt restructurings | ||
Number of Loans | 1 |
Loans - Impaired Loans (Details
Loans - Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Impaired loans | ||
Impaired loans, troubled debt restructurings | $ 2,180 | $ 2,690 |
Impaired loans, Unpaid Principal Balance | 2,685 | 5,430 |
Impaired loans, Recorded Investment in Loans without Specific Reserve | 467 | 660 |
Impaired loans, Recorded Investment in Loans with Specific Reserve | 2,117 | 4,548,000 |
Impaired loans, Related Allowance | 142 | 655 |
Impaired loans, Average Balance | 2,534 | 5,329 |
Impaired loans, Interest Income Recognized | 31 | 140 |
Real Estate Residential Mortgage | ||
Impaired loans | ||
Impaired loans, Unpaid Principal Balance | 1,270 | 1,689 |
Impaired loans, Recorded Investment in Loans without Specific Reserve | 439 | 550 |
Impaired loans, Recorded Investment in Loans with Specific Reserve | 729 | 1,035,000 |
Impaired loans, Related Allowance | 52 | 63 |
Impaired loans, Average Balance | 1,118 | 1,560 |
Impaired loans, Interest Income Recognized | 14 | 64 |
Commercial, Financial & Agricultural | Commercial real estate lending | ||
Impaired loans | ||
Impaired loans, Unpaid Principal Balance | 1,387 | 1,389 |
Impaired loans, Recorded Investment in Loans with Specific Reserve | 1,388 | 1,390,000 |
Impaired loans, Related Allowance | 90 | 103 |
Impaired loans, Average Balance | 1,388 | 1,393 |
Impaired loans, Interest Income Recognized | 17 | 72 |
Commercial, Financial & Agricultural | Commercial business lending | ||
Impaired loans | ||
Impaired loans, Unpaid Principal Balance | 2,234 | |
Impaired loans, Recorded Investment in Loans with Specific Reserve | 2,123,000 | |
Impaired loans, Related Allowance | 489 | |
Impaired loans, Average Balance | 2,257 | |
Equity lines | ||
Impaired loans | ||
Impaired loans, Unpaid Principal Balance | 28 | 118 |
Impaired loans, Recorded Investment in Loans without Specific Reserve | 28 | 110 |
Impaired loans, Average Balance | $ 28 | 119 |
Impaired loans, Interest Income Recognized | $ 4 |
Allowance for Loan Losses - Cha
Allowance for Loan Losses - Change in Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Allowance balance attributable to loans: | ||
Balance at the beginning of period | $ 40,157 | $ 39,156 |
Provision charged to operations | (328) | 280 |
Loans charged off | (1,372) | (1,696) |
Recoveries of loans previously charged off | 1,311 | 1,293 |
Balance at the end of period | 39,768 | 39,033 |
Real Estate Residential Mortgage | ||
Allowance balance attributable to loans: | ||
Balance at the beginning of period | 2,660 | 2,914 |
Provision charged to operations | (38) | (28) |
Recoveries of loans previously charged off | 6 | 7 |
Balance at the end of period | 2,628 | 2,893 |
Real Estate Construction | ||
Allowance balance attributable to loans: | ||
Balance at the beginning of period | 856 | 975 |
Provision charged to operations | 37 | (153) |
Balance at the end of period | 893 | 822 |
Commercial, Financial & Agricultural | ||
Allowance balance attributable to loans: | ||
Balance at the beginning of period | 11,085 | 10,696 |
Provision charged to operations | (636) | 311 |
Loans charged off | (11) | |
Recoveries of loans previously charged off | 2 | |
Balance at the end of period | 10,440 | 11,007 |
Equity lines | ||
Allowance balance attributable to loans: | ||
Balance at the beginning of period | 593 | 687 |
Provision charged to operations | (49) | (16) |
Balance at the end of period | 544 | 671 |
Consumer | ||
Allowance balance attributable to loans: | ||
Balance at the beginning of period | 172 | 371 |
Provision charged to operations | 8 | (84) |
Loans charged off | (48) | (45) |
Recoveries of loans previously charged off | 32 | 35 |
Balance at the end of period | 164 | 277 |
Consumer Finance | ||
Allowance balance attributable to loans: | ||
Balance at the beginning of period | 24,791 | 23,513 |
Provision charged to operations | 350 | 250 |
Loans charged off | (1,313) | (1,651) |
Recoveries of loans previously charged off | 1,271 | 1,251 |
Balance at the end of period | $ 25,099 | $ 23,363 |
Allowance for Loan Losses - All
Allowance for Loan Losses - Allowance and Loans by Impairment Methodology (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Allowance balance attributable to loans: | ||||
Individually evaluated for impairment | $ 142 | $ 655 | ||
Collectively evaluated for impairment | 39,626 | 39,502 | ||
Total allowance | 39,768 | 40,157 | $ 39,033 | $ 39,156 |
Loans: | ||||
Individually evaluated for impairment | 2,584 | 5,208 | ||
Collectively evaluated for impairment | 1,436,339 | 1,401,197 | ||
Acquired loans - PCI | 2,686 | 3,655 | ||
Total Loans | 1,441,609 | 1,410,060 | ||
Real Estate Residential Mortgage | ||||
Allowance balance attributable to loans: | ||||
Individually evaluated for impairment | 52 | 63 | ||
Collectively evaluated for impairment | 2,576 | 2,597 | ||
Total allowance | 2,628 | 2,660 | 2,893 | 2,914 |
Loans: | ||||
Individually evaluated for impairment | 1,168 | 1,585 | ||
Collectively evaluated for impairment | 214,348 | 214,614 | ||
Acquired loans - PCI | 510 | 817 | ||
Total Loans | 216,026 | 217,016 | ||
Real Estate Construction | ||||
Allowance balance attributable to loans: | ||||
Collectively evaluated for impairment | 893 | 856 | ||
Total allowance | 893 | 856 | 822 | 975 |
Loans: | ||||
Collectively evaluated for impairment | 61,302 | 57,495 | ||
Total Loans | 61,302 | 57,495 | ||
Commercial, Financial & Agricultural | ||||
Allowance balance attributable to loans: | ||||
Individually evaluated for impairment | 90 | 592 | ||
Collectively evaluated for impairment | 10,350 | 10,493 | ||
Total allowance | 10,440 | 11,085 | 11,007 | 10,696 |
Loans: | ||||
Individually evaluated for impairment | 1,388 | 3,513 | ||
Collectively evaluated for impairment | 715,602 | 711,464 | ||
Acquired loans - PCI | 2,106 | 2,753 | ||
Total Loans | 719,096 | 717,730 | ||
Equity lines | ||||
Allowance balance attributable to loans: | ||||
Collectively evaluated for impairment | 544 | 593 | ||
Total allowance | 544 | 593 | 671 | 687 |
Loans: | ||||
Individually evaluated for impairment | 28 | 110 | ||
Collectively evaluated for impairment | 40,648 | 41,197 | ||
Acquired loans - PCI | 29 | 38 | ||
Total Loans | 40,705 | 41,345 | ||
Consumer | ||||
Allowance balance attributable to loans: | ||||
Collectively evaluated for impairment | 164 | 172 | ||
Total allowance | 164 | 172 | 277 | 371 |
Loans: | ||||
Collectively evaluated for impairment | 7,717 | 8,233 | ||
Acquired loans - PCI | 41 | 47 | ||
Total Loans | 7,758 | 8,280 | ||
Consumer Finance | ||||
Allowance balance attributable to loans: | ||||
Collectively evaluated for impairment | 25,099 | 24,791 | ||
Total allowance | 25,099 | 24,791 | $ 23,363 | $ 23,513 |
Loans: | ||||
Collectively evaluated for impairment | 396,722 | 368,194 | ||
Total Loans | $ 396,722 | $ 368,194 |
Allowance for Loan Losses - Cre
Allowance for Loan Losses - Credit Quality Indicators (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Allowance for loan losses | ||
Loans, excluding consumer finance | $ 1,044,887 | $ 1,041,866 |
Pass | ||
Allowance for loan losses | ||
Loans, excluding consumer finance | 1,035,256 | 1,029,849 |
Special Mention | ||
Allowance for loan losses | ||
Loans, excluding consumer finance | 2,576 | 2,700 |
Substandard | ||
Allowance for loan losses | ||
Loans, excluding consumer finance | 6,608 | 6,773 |
Substandard Nonaccrual | ||
Allowance for loan losses | ||
Loans, excluding consumer finance | 447 | 2,544 |
Doubtful | ||
Allowance for loan losses | ||
Loans, excluding consumer finance | 0 | 0 |
Real Estate Residential Mortgage | ||
Allowance for loan losses | ||
Loans, excluding consumer finance | 216,026 | 217,016 |
Real Estate Residential Mortgage | Pass | ||
Allowance for loan losses | ||
Loans, excluding consumer finance | 214,505 | 215,432 |
Real Estate Residential Mortgage | Special Mention | ||
Allowance for loan losses | ||
Loans, excluding consumer finance | 509 | 664 |
Real Estate Residential Mortgage | Substandard | ||
Allowance for loan losses | ||
Loans, excluding consumer finance | 670 | 605 |
Real Estate Residential Mortgage | Substandard Nonaccrual | ||
Allowance for loan losses | ||
Loans, excluding consumer finance | 342 | 315 |
Real Estate Construction | Construction lending | ||
Allowance for loan losses | ||
Loans, excluding consumer finance | 46,206 | 39,252 |
Real Estate Construction | Construction lending | Pass | ||
Allowance for loan losses | ||
Loans, excluding consumer finance | 46,206 | 39,252 |
Real Estate Construction | Consumer lot lending | ||
Allowance for loan losses | ||
Loans, excluding consumer finance | 15,096 | 18,243 |
Real Estate Construction | Consumer lot lending | Pass | ||
Allowance for loan losses | ||
Loans, excluding consumer finance | 15,096 | 18,243 |
Commercial, Financial & Agricultural | Commercial real estate lending | ||
Allowance for loan losses | ||
Loans, excluding consumer finance | 525,422 | 527,913 |
Commercial, Financial & Agricultural | Commercial real estate lending | Pass | ||
Allowance for loan losses | ||
Loans, excluding consumer finance | 517,441 | 519,938 |
Commercial, Financial & Agricultural | Commercial real estate lending | Special Mention | ||
Allowance for loan losses | ||
Loans, excluding consumer finance | 2,057 | 1,989 |
Commercial, Financial & Agricultural | Commercial real estate lending | Substandard | ||
Allowance for loan losses | ||
Loans, excluding consumer finance | 5,924 | 5,986 |
Commercial, Financial & Agricultural | Land acquisition & development lending | ||
Allowance for loan losses | ||
Loans, excluding consumer finance | 37,062 | 27,609 |
Commercial, Financial & Agricultural | Land acquisition & development lending | Pass | ||
Allowance for loan losses | ||
Loans, excluding consumer finance | 37,062 | 27,609 |
Commercial, Financial & Agricultural | Builder line lending | ||
Allowance for loan losses | ||
Loans, excluding consumer finance | 30,915 | 30,499 |
Commercial, Financial & Agricultural | Builder line lending | Pass | ||
Allowance for loan losses | ||
Loans, excluding consumer finance | 30,915 | 30,499 |
Commercial, Financial & Agricultural | Commercial business lending | ||
Allowance for loan losses | ||
Loans, excluding consumer finance | 125,697 | 131,709 |
Commercial, Financial & Agricultural | Commercial business lending | Pass | ||
Allowance for loan losses | ||
Loans, excluding consumer finance | 125,697 | 129,587 |
Commercial, Financial & Agricultural | Commercial business lending | Substandard Nonaccrual | ||
Allowance for loan losses | ||
Loans, excluding consumer finance | 2,122 | |
Equity lines | ||
Allowance for loan losses | ||
Loans, excluding consumer finance | 40,705 | 41,345 |
Equity lines | Pass | ||
Allowance for loan losses | ||
Loans, excluding consumer finance | 40,578 | 41,013 |
Equity lines | Special Mention | ||
Allowance for loan losses | ||
Loans, excluding consumer finance | 10 | 47 |
Equity lines | Substandard | ||
Allowance for loan losses | ||
Loans, excluding consumer finance | 14 | 181 |
Equity lines | Substandard Nonaccrual | ||
Allowance for loan losses | ||
Loans, excluding consumer finance | 103 | 104 |
Consumer | ||
Allowance for loan losses | ||
Loans, excluding consumer finance | 7,758 | 8,280 |
Consumer | Pass | ||
Allowance for loan losses | ||
Loans, excluding consumer finance | 7,756 | 8,276 |
Consumer | Substandard | ||
Allowance for loan losses | ||
Loans, excluding consumer finance | 1 | |
Consumer | Substandard Nonaccrual | ||
Allowance for loan losses | ||
Loans, excluding consumer finance | $ 2 | $ 3 |
Allowance for Loan Losses - Loa
Allowance for Loan Losses - Loans by Credit Quality Indicators - Performing and Non-Performing (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Allowance for loan losses | ||
Loans | $ 1,441,609 | $ 1,410,060 |
Consumer Finance | ||
Allowance for loan losses | ||
Loans | 396,722 | 368,194 |
Consumer Finance | Performing | ||
Allowance for loan losses | ||
Loans | 396,404 | 367,814 |
Consumer Finance | Non-performing | ||
Allowance for loan losses | ||
Loans | 318 | 380 |
Consumer Finance | Automobiles | ||
Allowance for loan losses | ||
Loans | 348,690 | 322,067 |
Consumer Finance | Automobiles | Performing | ||
Allowance for loan losses | ||
Loans | 348,372 | 321,687 |
Consumer Finance | Automobiles | Non-performing | ||
Allowance for loan losses | ||
Loans | 318 | 380 |
Consumer Finance | Marine and recreational vehicles | ||
Allowance for loan losses | ||
Loans | 48,032 | 46,127 |
Consumer Finance | Marine and recreational vehicles | Performing | ||
Allowance for loan losses | ||
Loans | $ 48,032 | $ 46,127 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Goodwill (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Goodwill and Other Intangible Assets | |
Goodwill | $ 25,191 |
Changes in the recorded balance of goodwill | 0 |
Changes in goodwill, by reporting unit | |
Balance as of the beginning of the period | 25,191 |
Acquisition of Peoples Bankshares, Incorporated | 0 |
Balance at the end of the period | $ 25,191 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Other Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Other intangible assets | ||
Other intangible assets, net | $ 1,902 | $ 1,977 |
Gross carrying amounts and accumulated amortization | ||
Gross Carrying Amount | 3,116 | 3,116 |
Accumulated Amortization | (1,214) | (1,139) |
Core deposit intangible | ||
Gross carrying amounts and accumulated amortization | ||
Gross Carrying Amount | 1,711 | 1,711 |
Accumulated Amortization | (360) | (325) |
Other amortizable intangibles | ||
Gross carrying amounts and accumulated amortization | ||
Gross Carrying Amount | 1,405 | 1,405 |
Accumulated Amortization | $ (854) | $ (814) |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Amortization (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Goodwill and Other Intangible Assets | |||
Amortization of intangible assets | $ 75,000 | $ 78,000 | |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | |||
Finite-Lived Intangible Assets, Net | $ 1,902,000 | $ 1,977,000 |
Equity, Other Comprehensive I_3
Equity, Other Comprehensive Income (Loss) and Earnings Per Share - Equity and Noncontrolling Interest (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 01, 2021 | |
Shareholders' Equity | |||
Number of shares withheld from employees to satisfy tax withholding obligations | 4,434 | 5,633 | |
Share Repurchase Program 2021 | |||
Shareholders' Equity | |||
Number of shares authorized to be repurchased | 10,000,000 | ||
Shares repurchased (in shares) | 9,717 | ||
Cost of shares repurchased | $ 493,000 | $ 0 |
Equity, Other Comprehensive I_4
Equity, Other Comprehensive Income (Loss) and Earnings Per Share - Changes in Accumulated Other Comprehensive Loss, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Balance, beginning of the period | $ 211,024 | $ 194,471 |
Other comprehensive loss, net of tax | (13,777) | (1,605) |
Balance, end of period | 201,278 | 198,692 |
Accumulated Other Comprehensive Loss, Net | ||
Balance, beginning of the period | (2,087) | (1,955) |
Net (loss) income arising during the period | (17,355) | (1,981) |
Related income tax effects | 3,586 | 368 |
Net (loss) income arising during the period, net of tax | (13,769) | (1,613) |
Reclassifications into net income | (10) | 9 |
Related income tax effects | 2 | (1) |
Reclassifications into net income, net of tax | (8) | 8 |
Other comprehensive loss, net of tax | (13,777) | (1,605) |
Balance, end of period | (15,864) | (3,560) |
Securities Available For Sale | ||
Balance, beginning of the period | 437 | 4,397 |
Net (loss) income arising during the period | (18,595) | (2,971) |
Related income tax effects | 3,905 | 623 |
Net (loss) income arising during the period, net of tax | (14,690) | (2,348) |
Reclassifications into net income | (32) | |
Related income tax effects | 7 | |
Reclassifications into net income, net of tax | (25) | |
Other comprehensive loss, net of tax | (14,690) | (2,373) |
Balance, end of period | (14,253) | 2,024 |
Defined Benefit Plan | ||
Balance, beginning of the period | (2,055) | (4,985) |
Reclassifications into net income | (8) | 43 |
Related income tax effects | 1 | (9) |
Reclassifications into net income, net of tax | (7) | 34 |
Other comprehensive loss, net of tax | (7) | 34 |
Balance, end of period | (2,062) | (4,951) |
Cash Flow Hedges | ||
Balance, beginning of the period | (469) | (1,367) |
Net (loss) income arising during the period | 1,240 | 990 |
Related income tax effects | (319) | (255) |
Net (loss) income arising during the period, net of tax | 921 | 735 |
Reclassifications into net income | (2) | (2) |
Related income tax effects | 1 | 1 |
Reclassifications into net income, net of tax | (1) | (1) |
Other comprehensive loss, net of tax | 920 | 734 |
Balance, end of period | $ 451 | $ (633) |
Equity, Other Comprehensive I_5
Equity, Other Comprehensive Income (Loss) and Earnings Per Share - Reclassification of Accumulated Other Comprehensive Loss, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Net gains on calls of available for sale securities | $ 32 | |
Noninterest expenses - Other | $ 6,146 | 7,046 |
Interest expense - Trust preferred capital notes | 284 | 284 |
Income tax expense | 1,587 | 2,287 |
Reclassifications from accumulated other comprehensive loss into net income | ||
Total reclassifications into net income | 8 | (8) |
Securities Available For Sale | Reclassifications from accumulated other comprehensive loss into net income | ||
Total reclassifications into net income | 25 | |
Reclassification of net realized gains into net income | Reclassifications from accumulated other comprehensive loss into net income | ||
Net gains on calls of available for sale securities | 32 | |
Related income tax effects | Reclassifications from accumulated other comprehensive loss into net income | ||
Income tax expense | (7) | |
Defined Benefit Plan | Reclassifications from accumulated other comprehensive loss into net income | ||
Total reclassifications into net income | 7 | (34) |
Reclassification of recognized net acuarial losses into net income | Reclassifications from accumulated other comprehensive loss into net income | ||
Noninterest expenses - Other | (9) | (60) |
Amortization of prior service credit into net income | Reclassifications from accumulated other comprehensive loss into net income | ||
Noninterest expenses - Other | 17 | 17 |
Related income tax effects. | Reclassifications from accumulated other comprehensive loss into net income | ||
Income tax expense | (1) | 9 |
Cash Flow Hedges | Reclassifications from accumulated other comprehensive loss into net income | ||
Total reclassifications into net income | 1 | 1 |
Amortization of hedging gains into net income | Reclassifications from accumulated other comprehensive loss into net income | ||
Interest expense - Trust preferred capital notes | 2 | 2 |
Related income tax effects, | Reclassifications from accumulated other comprehensive loss into net income | ||
Income tax expense | $ (1) | $ (1) |
Equity, Other Comprehensive I_6
Equity, Other Comprehensive Income (Loss) and Earnings Per Share - Earnings Per Share (EPS) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Components of earnings per share calculations | ||
Net income attributable to C&F Financial Corporation | $ 5,629 | $ 7,061 |
Weighted average shares outstanding-basic | 3,547,780 | 3,676,067 |
Weighted average shares outstanding-diluted | 3,547,780 | 3,676,067 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Other components of net periodic benefit cost: | ||
Net periodic benefit cost | $ 177 | $ 206 |
Cash Balance Plan | C&F Bank | ||
Components of net periodic benefit cost | ||
Service cost, included in salaries and employee benefits | 479 | 487 |
Other components of net periodic benefit cost: | ||
Interest cost | 124 | 116 |
Expected return on plan assets | (418) | (440) |
Amortization of prior service credit | (17) | (17) |
Recognized net actuarial losses | 9 | 60 |
Other components of net periodic benefit cost, included in other noninterest expense | (302) | (281) |
Net periodic benefit cost | $ 177 | $ 206 |
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 | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Fair Value of Assets and Liabilities | |||
Fair value of investment in small business investment companies | $ 2,500,000 | $ 1,470,000 | |
Unrealized gains or losses | $ 24,000 | $ 45,000 |
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 | Mar. 31, 2022 | Dec. 31, 2021 |
Securities available for sale | ||
Securities available for sale | $ 415,532 | $ 373,073 |
Interest rate swaps on loans | Cash flow hedges | ||
Securities available for sale | ||
Derivatives | 575 | |
Liabilities: | ||
Derivatives | 665 | |
Recurring | ||
Securities available for sale | ||
Securities available for sale | 415,532 | 373,073 |
Loans held for sale | 46,659 | 82,295 |
Total assets | 466,087 | 460,358 |
Liabilities: | ||
Total liabilities | 1,554 | 4,135 |
Recurring | Cash flow hedges | ||
Securities available for sale | ||
Derivatives | 575 | |
Liabilities: | ||
Derivatives | 665 | |
Recurring | IRLC | ||
Securities available for sale | ||
Derivatives | 1,767 | 1,523 |
Recurring | Interest rate swaps on loans | ||
Securities available for sale | ||
Derivatives | 1,554 | 3,467 |
Liabilities: | ||
Derivatives | 1,554 | 3,467 |
Recurring | Forward sales of TBA securities | ||
Liabilities: | ||
Derivatives | 3 | |
Level 2 | Recurring | ||
Securities available for sale | ||
Securities available for sale | 415,532 | 373,073 |
Loans held for sale | 46,659 | 82,295 |
Total assets | 466,087 | 460,358 |
Liabilities: | ||
Total liabilities | 1,554 | 4,135 |
Level 2 | Recurring | Cash flow hedges | ||
Securities available for sale | ||
Derivatives | 575 | |
Liabilities: | ||
Derivatives | 665 | |
Level 2 | Recurring | IRLC | ||
Securities available for sale | ||
Derivatives | 1,767 | 1,523 |
Level 2 | Recurring | Interest rate swaps on loans | ||
Securities available for sale | ||
Derivatives | 1,554 | 3,467 |
Liabilities: | ||
Derivatives | 1,554 | 3,467 |
Level 2 | Recurring | Forward sales of TBA securities | ||
Liabilities: | ||
Derivatives | 3 | |
U.S. Treasury securities | ||
Securities available for sale | ||
Securities available for sale | 26,211 | |
U.S. Treasury securities | Recurring | ||
Securities available for sale | ||
Securities available for sale | 26,211 | |
U.S. Treasury securities | Level 2 | Recurring | ||
Securities available for sale | ||
Securities available for sale | 26,211 | |
U.S. government agencies and corporations | ||
Securities available for sale | ||
Securities available for sale | 72,479 | 68,285 |
U.S. government agencies and corporations | Recurring | ||
Securities available for sale | ||
Securities available for sale | 72,479 | 68,285 |
U.S. government agencies and corporations | Level 2 | Recurring | ||
Securities available for sale | ||
Securities available for sale | 72,479 | 68,285 |
Mortgage-backed securities | ||
Securities available for sale | ||
Securities available for sale | 198,451 | 190,349 |
Mortgage-backed securities | Recurring | ||
Securities available for sale | ||
Securities available for sale | 198,451 | 190,349 |
Mortgage-backed securities | Level 2 | Recurring | ||
Securities available for sale | ||
Securities available for sale | 198,451 | 190,349 |
Obligations of states and political subdivisions | ||
Securities available for sale | ||
Securities available for sale | 91,720 | 92,666 |
Obligations of states and political subdivisions | Recurring | ||
Securities available for sale | ||
Securities available for sale | 91,720 | 92,666 |
Obligations of states and political subdivisions | Level 2 | Recurring | ||
Securities available for sale | ||
Securities available for sale | 91,720 | 92,666 |
Corporate and other debt securities | ||
Securities available for sale | ||
Securities available for sale | 26,671 | 21,773 |
Corporate and other debt securities | Recurring | ||
Securities available for sale | ||
Securities available for sale | 26,671 | 21,773 |
Corporate and other debt securities | Level 2 | Recurring | ||
Securities available for sale | ||
Securities available for sale | $ 26,671 | $ 21,773 |
Fair Value of Assets and Liab_5
Fair Value of Assets and Liabilities - Financial Assets Measured at Fair Value on Non-Recurring Basis (Details) - Nonrecurring - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Impaired loans, net | ||
Fair value assets and liabilities - Nonrecurring Basis | ||
Total assets measured at fair value | $ 0 | $ 0 |
Other real estate owned, net | ||
Fair value assets and liabilities - Nonrecurring Basis | ||
Total assets measured at fair value | $ 0 | $ 0 |
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 | Mar. 31, 2022 | Dec. 31, 2021 |
Assets: | ||
Securities available for sale | $ 415,532 | $ 373,073 |
Bank-owned life insurance | 20,705 | 20,597 |
Carrying Value | ||
Assets: | ||
Cash and short-term investments | 270,928 | 269,487 |
Securities available for sale | 415,532 | 373,073 |
Loans, net | 1,401,841 | 1,369,903 |
Loans held for sale | 46,659 | 82,295 |
Bank-owned life insurance | 20,705 | 20,597 |
Accrued interest receivable | 6,953 | 6,810 |
Financial liabilities: | ||
Demand and savings deposits | 1,568,892 | 1,488,893 |
Time deposits | 400,769 | 425,721 |
Borrowings | 81,807 | 84,115 |
Accrued interest payable | 434 | 715 |
Total Fair Value | ||
Assets: | ||
Cash and short-term investments | 270,406 | 268,980 |
Securities available for sale | 415,532 | 373,073 |
Loans, net | 1,405,244 | 1,379,564 |
Loans held for sale | 46,659 | 82,295 |
Bank-owned life insurance | 20,705 | 20,597 |
Accrued interest receivable | 6,953 | 6,810 |
Financial liabilities: | ||
Demand and savings deposits | 1,568,892 | 1,488,893 |
Time deposits | 402,981 | 428,462 |
Borrowings | 85,137 | 89,609 |
Accrued interest payable | 434 | 715 |
Total Fair Value | Level 1 | ||
Assets: | ||
Cash and short-term investments | 268,938 | 267,745 |
Accrued interest receivable | 6,953 | 6,810 |
Financial liabilities: | ||
Demand and savings deposits | 1,568,892 | 1,488,893 |
Accrued interest payable | 434 | 715 |
Total Fair Value | Level 2 | ||
Assets: | ||
Cash and short-term investments | 1,468 | 1,235 |
Securities available for sale | 415,532 | 373,073 |
Loans held for sale | 46,659 | 82,295 |
Bank-owned life insurance | 20,705 | 20,597 |
Financial liabilities: | ||
Time deposits | 402,981 | 428,462 |
Borrowings | 85,137 | 89,609 |
Total Fair Value | Level 3 | ||
Assets: | ||
Loans, net | 1,405,244 | 1,379,564 |
IRLC | Carrying Value | ||
Assets: | ||
Derivatives | 1,767 | 1,523 |
IRLC | Total Fair Value | ||
Assets: | ||
Derivatives | 1,767 | 1,523 |
IRLC | Total Fair Value | Level 2 | ||
Assets: | ||
Derivatives | 1,767 | 1,523 |
Interest rate swaps on loans | Carrying Value | ||
Assets: | ||
Derivatives | 1,554 | 3,467 |
Financial liabilities: | ||
Derivatives | 1,554 | 3,467 |
Interest rate swaps on loans | Total Fair Value | ||
Assets: | ||
Derivatives | 1,554 | 3,467 |
Financial liabilities: | ||
Derivatives | 1,554 | 3,467 |
Interest rate swaps on loans | Total Fair Value | Level 2 | ||
Assets: | ||
Derivatives | 1,554 | 3,467 |
Financial liabilities: | ||
Derivatives | 1,554 | 3,467 |
Forward sales of TBA securities | Carrying Value | ||
Financial liabilities: | ||
Derivatives | 3 | |
Forward sales of TBA securities | Total Fair Value | ||
Financial liabilities: | ||
Derivatives | 3 | |
Forward sales of TBA securities | Total Fair Value | Level 2 | ||
Financial liabilities: | ||
Derivatives | 3 | |
Cash flow hedges | Carrying Value | ||
Assets: | ||
Derivatives | 575 | |
Financial liabilities: | ||
Derivatives | 665 | |
Cash flow hedges | Total Fair Value | ||
Assets: | ||
Derivatives | 575 | |
Financial liabilities: | ||
Derivatives | 665 | |
Cash flow hedges | Total Fair Value | Level 2 | ||
Assets: | ||
Derivatives | 575 | |
Financial liabilities: | ||
Derivatives | 665 | |
Cash flow hedges | Interest rate swaps on loans | ||
Assets: | ||
Derivatives | $ 575 | |
Financial liabilities: | ||
Derivatives | $ 665 |
Business Segments - Segment Rep
Business Segments - Segment Reporting (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022USD ($)segment | Mar. 31, 2021USD ($) | Dec. 31, 2021USD ($) | |
Business Segments | |||
Number of principal business segments | segment | 3 | ||
Interest income | $ 22,231 | $ 23,076 | |
Interest expense | 1,755 | 2,400 | |
Net interest income | 20,476 | 20,676 | |
Gains on sales of loans | 2,695 | 7,058 | |
Other noninterest income | 4,034 | 7,017 | |
Net revenue | 27,205 | 34,751 | |
Provision for loan losses | (328) | 280 | |
Noninterest expense | 20,211 | 25,019 | |
Income before income taxes | 7,322 | 9,452 | |
Income tax expense (benefit) | 1,587 | 2,287 | |
Net income | 5,735 | 7,165 | |
Capital expenditures | 1,156 | 2,123 | |
Depreciation and amortization | 1,135 | 1,189 | |
Total assets | 2,301,843 | $ 2,264,521 | |
Operating Segments | Community Banking | |||
Business Segments | |||
Interest income | 15,038 | 15,176 | |
Interest expense | 1,173 | 1,724 | |
Net interest income | 13,865 | 13,452 | |
Other noninterest income | 3,924 | 3,687 | |
Net revenue | 17,789 | 17,139 | |
Provision for loan losses | (700) | ||
Noninterest expense | 14,172 | 13,771 | |
Income before income taxes | 4,317 | 3,368 | |
Income tax expense (benefit) | 800 | 575 | |
Net income | 3,517 | 2,793 | |
Capital expenditures | 1,113 | 139 | |
Depreciation and amortization | 969 | 1,066 | |
Total assets | 2,166,045 | 2,131,391 | |
Operating Segments | Mortgage Banking | |||
Business Segments | |||
Interest income | 488 | 1,127 | |
Interest expense | 120 | 373 | |
Net interest income | 368 | 754 | |
Gains on sales of loans | 2,708 | 7,105 | |
Other noninterest income | 1,321 | 2,724 | |
Net revenue | 4,397 | 10,583 | |
Provision for loan losses | 22 | 30 | |
Noninterest expense | 3,226 | 6,987 | |
Income before income taxes | 1,149 | 3,566 | |
Income tax expense (benefit) | 283 | 1,021 | |
Net income | 866 | 2,545 | |
Capital expenditures | 26 | 60 | |
Depreciation and amortization | 63 | 68 | |
Total assets | 69,917 | 105,547 | |
Operating Segments | Consumer Finance. | |||
Business Segments | |||
Interest income | 9,578 | 9,249 | |
Interest expense | 2,768 | 2,200 | |
Net interest income | 6,810 | 7,049 | |
Other noninterest income | 66 | 112 | |
Net revenue | 6,876 | 7,161 | |
Provision for loan losses | 350 | 250 | |
Noninterest expense | 3,694 | 3,448 | |
Income before income taxes | 2,832 | 3,463 | |
Income tax expense (benefit) | 770 | 936 | |
Net income | 2,062 | 2,527 | |
Capital expenditures | 17 | 1,924 | |
Depreciation and amortization | 103 | 55 | |
Total assets | 400,338 | 372,292 | |
Operating Segments | Other | |||
Business Segments | |||
Interest expense | 582 | 582 | |
Net interest income | (582) | (582) | |
Other noninterest income | (1,260) | 511 | |
Net revenue | (1,842) | (71) | |
Noninterest expense | (867) | 813 | |
Income before income taxes | (975) | (884) | |
Income tax expense (benefit) | (266) | (232) | |
Net income | (709) | (652) | |
Total assets | 43,982 | 44,897 | |
Eliminations | |||
Business Segments | |||
Interest income | (2,873) | (2,476) | |
Interest expense | (2,888) | (2,479) | |
Net interest income | 15 | 3 | |
Gains on sales of loans | (13) | (47) | |
Other noninterest income | (17) | (17) | |
Net revenue | (15) | (61) | |
Noninterest expense | (14) | ||
Income before income taxes | (1) | (61) | |
Income tax expense (benefit) | (13) | ||
Net income | (1) | $ (48) | |
Total assets | $ (378,439) | $ (389,606) |
Business Segments - Merger Rela
Business Segments - Merger Related Expenses and Segment Debt (Details) | 3 Months Ended |
Mar. 31, 2022item | |
Mortgage Banking | |
Business Segments | |
Number of intersegment lines of credit | 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% |
Consumer Finance. | Maximum | |
Business Segments | |
Fixed rate (as a percent) | 8.00% |
Consumer Finance. | London Interbank Offered Rate (LIBOR) | Minimum | |
Business Segments | |
Variable rate, spread (as a percent) | 2.00% |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities - Loan Commitments (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Standby Letters of Credit | ||
Commitments and Contingent Liabilities | ||
Face amount of asset | $ 14,370 | $ 15,110 |
Loan commitments | ||
Commitments and Contingent Liabilities | ||
Face amount of asset | $ 303,060 | $ 305,370 |
Commitments and Contingent Li_3
Commitments and Contingent Liabilities - Other (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Commitments and Contingent Liabilities | |||
Provision for indemnification losses | $ (583) | $ 17 | |
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 | Mortgage Banking | |||
Commitments and Contingent Liabilities | |||
Provision for indemnification losses | $ 583 | 17 | |
Indemnification payments paid | 0 | $ 0 | |
Allowance for indemnifications | $ 2,670 | $ 3,250 |
Derivatives Financial Instrumen
Derivatives Financial Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Derivatives and other information | ||
Changes in fair value of loan swaps | $ 0 | |
Unpaid principal on mortgage loans held for sale | 2,685 | $ 5,430 |
Other assets | ||
Derivatives and other information | ||
Cash collateral | 1,440 | 3,880 |
Forward sales of TBA securities | Not designated as hedges | ||
Derivatives and other information | ||
Notional amount | 9,250 | |
Derivative Liability | 3 | |
Interest rate swaps on loans | Cash flow hedges | ||
Derivatives and other information | ||
Notional amount | 25,000 | 25,000 |
Derivative Asset | 575 | |
Derivative Liability | 665 | |
Matched interest rate swap with borrower | Not designated as hedges | ||
Derivatives and other information | ||
Notional amount | 72,031 | 72,352 |
Derivative Asset | 350 | 3,303 |
Derivative Liability | 1,204 | 164 |
Matched interest rate swap with counterparty | Not designated as hedges | ||
Derivatives and other information | ||
Notional amount | 72,031 | 72,352 |
Derivative Asset | 1,204 | 164 |
Derivative Liability | 350 | 3,303 |
IRLC | Not designated as hedges | ||
Derivatives and other information | ||
Notional amount | 103,505 | 83,407 |
Derivative Asset | 1,767 | 1,523 |
Mortgage Banking | ||
Derivatives and other information | ||
IRLCs | 2,820 | |
Unpaid principal on mortgage loans held for sale | 7,400 | |
Mortgage Banking | Best-efforts forward sales contracts | ||
Derivatives and other information | ||
IRLCs | 103,510 | 80,590 |
Unpaid principal on mortgage loans held for sale | 45,360 | 72,240 |
Mortgage loans | $ 148,870 | 152,830 |
Mortgage Banking | Forward sales of TBA securities | ||
Derivatives and other information | ||
Mortgage loans | 9,250 | |
Mortgage Banking | Mandatory-delivery forward sales contracts | ||
Derivatives and other information | ||
Mortgage loans | $ 1,010 |
Other Noninterest Expenses (Det
Other Noninterest Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Other Noninterest Expenses | ||
Data processing fees | $ 2,601 | $ 2,903 |
Professional fees | 752 | 747 |
Mortgage banking loan processing expenses | 502 | 894 |
Marketing and advertising expenses | 468 | 345 |
Travel and educational expenses | 442 | 154 |
Telecommunication expenses | 367 | 374 |
Provision for indemnification losses | (583) | 17 |
Other real estate (gain)/loss and expenses, net | (7) | |
All other noninterest expenses | 1,597 | 1,619 |
Total other noninterest expenses | $ 6,146 | $ 7,046 |