Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2023 | Nov. 03, 2023 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
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, $1.00 par value per share | |
Trading Symbol | CFFI | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 3,368,463 | |
Entity Central Index Key | 0000913341 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Assets | ||
Cash and due from banks | $ 17,105 | $ 19,610 |
Interest-bearing deposits in other banks | 53,407 | 7,051 |
Total cash and cash equivalents | 70,512 | 26,661 |
Securities-available for sale at fair value, amortized cost of $510,597 and $557,128, respectively | 460,653 | 512,591 |
Loans held for sale, at fair value | 25,469 | 14,259 |
Loans, net of allowance for credit losses of $40,248 and $40,518, respectively | 1,677,481 | 1,595,200 |
Restricted stock, at cost | 4,801 | 1,120 |
Corporate premises and equipment, net | 42,354 | 43,849 |
Accrued interest receivable | 10,039 | 8,982 |
Goodwill | 25,191 | 25,191 |
Other intangible assets, net | 1,475 | 1,679 |
Bank-owned life insurance | 21,248 | 20,909 |
Net deferred tax asset | 23,434 | 22,014 |
Other assets | 59,048 | 59,862 |
Total assets | 2,421,705 | 2,332,317 |
Deposits | ||
Noninterest-bearing demand deposits | 574,102 | 605,210 |
Savings and interest-bearing demand deposits | 857,038 | 1,017,356 |
Time deposits | 597,289 | 381,294 |
Total deposits | 2,028,429 | 2,003,860 |
Short-term borrowings | 95,660 | 36,592 |
Long-term borrowings | 25,975 | 30,106 |
Trust preferred capital notes | 25,413 | 25,386 |
Accrued interest payable | 3,188 | 950 |
Other liabilities | 42,660 | 39,190 |
Total liabilities | 2,221,325 | 2,136,084 |
Commitments and contingent liabilities (Note 11) | ||
Equity | ||
Common stock ($1.00 par value, 8,000,000 shares authorized, 3,379,619 and 3,476,614 shares issued and outstanding, respectively, includes 130,629 and 145,677 of unvested shares, respectively) | 3,249 | 3,331 |
Additional paid-in capital | 7,419 | 12,047 |
Retained earnings | 230,168 | 217,214 |
Accumulated other comprehensive loss, net | (41,074) | (36,958) |
Equity attributable to C&F Financial Corporation | 199,762 | 195,634 |
Noncontrolling interest | 618 | 599 |
Total equity | 200,380 | 196,233 |
Total liabilities and equity | $ 2,421,705 | $ 2,332,317 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
CONSOLIDATED BALANCE SHEETS (Unaudited) | ||
Available-for-sale securities, amortized cost | $ 510,597 | $ 557,128 |
Allowance for credit losses | $ 40,248 | $ 40,518 |
Common stock par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized | 8,000,000 | 8,000,000 |
Common stock, shares issued | 3,379,619 | 3,476,614 |
Common stock, shares outstanding | 3,379,619 | 3,476,614 |
Common stock, unvested shares | 130,629 | 145,677 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Interest income | ||||
Interest and fees on loans | $ 28,369 | $ 23,159 | $ 81,845 | $ 65,566 |
Interest on interest-bearing deposits and federal funds sold | 379 | 521 | 836 | 1,021 |
Interest and dividends on securities | ||||
U.S. treasury, government agencies and corporations | 795 | 961 | 2,785 | 1,800 |
Mortgage-backed securities | 902 | 854 | 2,782 | 2,300 |
Tax-exempt obligations of states and political subdivisions | 731 | 409 | 2,031 | 1,096 |
Taxable obligations of states and political subdivisions | 178 | 188 | 545 | 475 |
Corporate and other | 332 | 234 | 905 | 691 |
Total interest income | 31,686 | 26,326 | 91,729 | 72,949 |
Interest expense | ||||
Savings and interest-bearing deposits | 1,316 | 557 | 3,790 | 1,415 |
Time deposits | 4,316 | 722 | 9,447 | 2,070 |
Borrowings | 1,291 | 373 | 3,837 | 1,110 |
Trust preferred capital notes | 301 | 294 | 890 | 867 |
Total interest expense | 7,224 | 1,946 | 17,964 | 5,462 |
Net interest income | 24,462 | 24,380 | 73,765 | 67,487 |
Provision for credit losses | 2,050 | 1,200 | 5,800 | 1,402 |
Net interest income after provision for credit losses | 22,412 | 23,180 | 67,965 | 66,085 |
Noninterest income | ||||
Gains on sales of loans | 1,220 | 1,870 | 4,930 | 6,763 |
Interchange income | 1,558 | 1,513 | 4,658 | 4,502 |
Service charges on deposit accounts | 1,122 | 1,099 | 3,241 | 3,216 |
Investment income in other equity interests | 211 | 64 | 480 | 294 |
Mortgage banking fee income | 558 | 731 | 1,695 | 2,508 |
Wealth management services income, net | 630 | 613 | 1,855 | 1,885 |
Mortgage lender services income | 537 | 397 | 1,567 | 1,259 |
Other service charges and fees | 364 | 403 | 1,134 | 1,179 |
Net losses on sales, maturities and calls of available for sale securities | (5) | |||
Other income (loss), net | (180) | (561) | 1,671 | (3,085) |
Total noninterest income | 6,020 | 6,129 | 21,226 | 18,521 |
Noninterest expenses | ||||
Salaries and employee benefits | 12,921 | 12,202 | 40,841 | 34,700 |
Occupancy | 1,944 | 2,182 | 5,975 | 6,507 |
Other | 6,467 | 6,705 | 19,408 | 19,192 |
Total noninterest expenses | 21,332 | 21,089 | 66,224 | 60,399 |
Income before income taxes | 7,100 | 8,220 | 22,967 | 24,207 |
Income tax expense | 1,323 | 1,675 | 4,309 | 5,144 |
Net income | 5,777 | 6,545 | 18,658 | 19,063 |
Less net (loss) income attributable to noncontrolling interest | (12) | 65 | 122 | 212 |
Net income attributable to C&F Financial Corporation | $ 5,789 | $ 6,480 | $ 18,536 | $ 18,851 |
Net income per share - basic (in dollars per share) | $ 1.71 | $ 1.85 | $ 5.41 | $ 5.34 |
Net income per share - diluted (in dollars per share) | $ 1.71 | $ 1.85 | $ 5.41 | $ 5.34 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) | ||||
Net income | $ 5,777 | $ 6,545 | $ 18,658 | $ 19,063 |
Other comprehensive income (loss), net of tax: | ||||
Securities available for sale | (5,821) | (15,443) | (4,272) | (40,213) |
Defined benefit plan | 20 | (5) | 61 | (17) |
Cash flow hedges | 133 | 653 | 95 | 1,997 |
Other comprehensive loss, net of tax | (5,668) | (14,795) | (4,116) | (38,233) |
Comprehensive income (loss) | 109 | (8,250) | 14,542 | (19,170) |
Less comprehensive (loss) income attributable to noncontrolling interest | (12) | 65 | 122 | 212 |
Comprehensive income (loss) attributable to C&F Financial Corporation | $ 121 | $ (8,315) | $ 14,420 | $ (19,382) |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY (Unaudited) - USD ($) $ in Thousands | Common Stock | Additional Paid-In Capital | Retained Earnings Adjustment | Retained Earnings | Accumulated Other Comprehensive Loss, Net | Noncontrolling Interest | Adjustment | Total |
Balance, beginning of the period at Dec. 31, 2021 | $ 3,405 | $ 15,189 | $ 193,811 | $ (2,087) | $ 706 | $ 211,024 | ||
Comprehensive income (loss): | ||||||||
Net income | 18,851 | 212 | 19,063 | |||||
Other comprehensive income loss | (38,233) | (38,233) | ||||||
Share-based compensation | 1,532 | 1,532 | ||||||
Restricted stock vested | 16 | (16) | ||||||
Common stock issued | 3 | 134 | 137 | |||||
Common stock purchased | (71) | (3,468) | (3,539) | |||||
Cash dividends declared | (4,299) | (4,299) | ||||||
Distributions to noncontrolling interest | (245) | (245) | ||||||
Balance, end of period at Sep. 30, 2022 | 3,353 | 13,371 | 208,363 | (40,320) | 673 | 185,440 | ||
Balance, beginning of the period at Jun. 30, 2022 | 3,385 | 14,464 | 203,351 | (25,525) | 608 | 196,283 | ||
Comprehensive income (loss): | ||||||||
Net income | 6,480 | 65 | 6,545 | |||||
Other comprehensive income loss | (14,795) | (14,795) | ||||||
Share-based compensation | 524 | 524 | ||||||
Restricted stock vested | 2 | (2) | ||||||
Common stock issued | 1 | 46 | 47 | |||||
Common stock purchased | (35) | (1,661) | (1,696) | |||||
Cash dividends declared | (1,468) | (1,468) | ||||||
Balance, end of period at Sep. 30, 2022 | 3,353 | 13,371 | 208,363 | (40,320) | 673 | 185,440 | ||
Balance, beginning of the period at Dec. 31, 2022 | 3,331 | 12,047 | $ (1,072) | 217,214 | (36,958) | 599 | $ (1,072) | 196,233 |
Comprehensive income (loss): | ||||||||
Net income | 18,536 | 122 | 18,658 | |||||
Other comprehensive income loss | (4,116) | (4,116) | ||||||
Share-based compensation | 1,508 | 1,508 | ||||||
Restricted stock vested | 30 | (30) | ||||||
Common stock issued | 3 | 142 | 145 | |||||
Common stock purchased | (115) | (6,248) | (6,363) | |||||
Cash dividends declared | (4,510) | (4,510) | ||||||
Distributions to noncontrolling interest | (103) | (103) | ||||||
Balance, end of period at Sep. 30, 2023 | 3,249 | 7,419 | 230,168 | (41,074) | 618 | 200,380 | ||
Balance, beginning of the period at Jun. 30, 2023 | 3,269 | 8,168 | 225,867 | (35,406) | 630 | 202,528 | ||
Comprehensive income (loss): | ||||||||
Net income | 5,789 | (12) | 5,777 | |||||
Other comprehensive income loss | (5,668) | (5,668) | ||||||
Share-based compensation | 581 | 581 | ||||||
Restricted stock vested | 4 | (4) | ||||||
Common stock issued | 2 | 47 | 49 | |||||
Common stock purchased | (26) | (1,373) | (1,399) | |||||
Cash dividends declared | (1,488) | (1,488) | ||||||
Balance, end of period at Sep. 30, 2023 | $ 3,249 | $ 7,419 | $ 230,168 | $ (41,074) | $ 618 | $ 200,380 |
CONSOLIDATED STATEMENTS OF EQ_2
CONSOLIDATED STATEMENTS OF EQUITY (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
CONSOLIDATED STATEMENTS OF EQUITY (Unaudited) | ||||
Cash dividends declared (in dollars per share) | $ 0.44 | $ 0.42 | $ 1.32 | $ 1.22 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Operating activities: | ||
Net income | $ 18,658 | $ 19,063 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for credit losses | 5,800 | 1,402 |
Accretion of certain acquisition-related discounts, net | (632) | (1,190) |
Share-based compensation | 1,508 | 1,532 |
Depreciation and amortization | 2,919 | 3,305 |
Amortization of premiums and accretion of discounts on securities, net | 1,041 | 1,960 |
(Reversal of) provision for indemnifications | (435) | (858) |
Income from bank-owned life insurance | (299) | (295) |
Pension expense | 692 | 480 |
Proceeds from sales of loans held for sale | 394,106 | 644,514 |
Origination of loans held for sale | (400,559) | (587,245) |
Gains on sales of loans held for sale | (4,930) | (6,763) |
Other gains, net | 184 | (13) |
Change in other assets and liabilities: | ||
Accrued interest receivable | (1,057) | (1,036) |
Other assets | 1,713 | (2,555) |
Accrued interest payable | 2,238 | (244) |
Other liabilities | 890 | (3,032) |
Net cash provided by operating activities | 21,837 | 69,025 |
Investing activities: | ||
Proceeds from sales, maturities and calls of securities available for sale and payments on mortgage-backed securities | 75,560 | 43,681 |
Purchases of securities available for sale | (30,075) | (223,034) |
Purchases of time deposits, net | (253) | 494 |
Repayments on loans held for investment by non-bank affiliates | 121,257 | 136,624 |
Purchases of loans held for investment by non-bank affiliates | (124,340) | (234,828) |
Net increase in community banking loans held for investment | (84,113) | (61,516) |
Purchases of corporate premises and equipment | (1,019) | (2,360) |
Proceeds from sales of other real estate owned | 915 | |
Changes in collateral posted with other financial institutions, net | 3,880 | |
Other investing activities, net | (3,675) | (1,061) |
Net cash used in investing activities | (46,658) | (337,205) |
Financing activities: | ||
Net (decrease) increase in demand and savings deposits | (191,426) | 143,467 |
Net increase (decrease) in time deposits | 215,995 | (38,384) |
Net increase in short-term borrowings | 59,068 | 2,898 |
Repayments of long-term borrowings | (4,000) | |
Repurchases of common stock | (6,363) | (3,539) |
Cash dividends paid | (4,510) | (4,299) |
Other financing activities, net | (92) | (260) |
Net cash provided by financing activities | 68,672 | 99,883 |
Net increase (decrease) in cash and cash equivalents | 43,851 | (168,297) |
Cash and cash equivalents at beginning of period | 26,661 | 267,745 |
Cash and cash equivalents at end of period | 70,512 | 99,448 |
Supplemental cash flow disclosures: | ||
Interest paid | 15,707 | 5,738 |
Income taxes paid | 3,545 | 6,623 |
Supplemental disclosure of noncash investing and financing activities: | ||
Transfers from corporate premises and equipment to other real estate owned | 423 | |
Adoption of new accounting standard (Note 1) | 1,072 | |
Liabilities assumed to acquire right of use assets under operating leases | $ 181 | 888 |
Transfers from loans held for sale to loans held for investment | $ 2,971 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2023 | |
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. 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. (C&F Insurance) and CVB Title Services, Inc. (CVB Title), 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 and CVB Title were organized for the primary purpose of owning equity interests in an independent insurance agency and a full service title and settlement agency, respectively. Business segment data is presented in Note 10. Basis of Presentation: Reclassification: Derivative Financial Instruments: other asset other liability Recently Adopted Accounting Standard: 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” ASC 326 introduced an approach based on current expected credit losses (CECL) to estimate credit losses on certain types of financial instruments, replacing the incurred loss methodology from prior GAAP. It also applies to unfunded commitments to extend credit, including loan commitments, standby letters of credit, and other similar instruments. It modified the impairment model for available-for-sale debt securities and provided for a simplified accounting model for purchased financial assets with credit deterioration since their origination. It also modified the measurement principles for modifications of loans to borrowers experiencing financial difficulty, including how the allowance for credit losses (ACL) is measured for such loans. The amendments of ASC 326, upon adoption, were applied on a modified retrospective basis, recording an increase in the reported balance of loans and the allowance for credit losses on loans, recognizing a liability for credit losses on commitments to extend credit, and reducing total equity of both the Corporation and of C&F Bank, which resulted in a reduction of regulatory capital of C&F Bank. As a result of adopting ASC 326, the Corporation recorded a decrease to opening retained earnings of $1.1 million. ASC 326 also replaced the Corporation’s previous accounting policies for purchased credit-impaired (PCI) loans and troubled-debt restructurings (TDRs). With the adoption of ASC 326, loans previously designated as PCI loans were designated as purchased loans with credit deterioration (PCD loans). The Corporation adopted ASC 326 using the prospective transition approach for PCD loans that were previously identified as PCI and accounted for under ASC 310-30. On January 1, 2023, the Corporation’s PCD loans were adjusted to reflect the addition of $604,000 of expected credit losses to the amortized cost basis of the loans and a corresponding increase to the ACL. The remaining noncredit discount, the difference between the adjusted amortized cost basis and the outstanding principal balance on PCD loans, will be accreted into interest income over the estimated remaining lives of the loans using the effective interest rate method. The evaluation of the ACL will include PCD loans together with other loans that share similar risk characteristics, rather than using the separate pools that were used under PCI accounting. The adoption of ASC 326 also replaced previous TDR accounting guidance, and the evaluation of the ACL will include loans previously designated as TDRs together with other loans that share similar risk characteristics. The adoption of ASC 326 did not affect the carrying value of debt securities or the amount of unrealized gains and losses recorded in accumulated other comprehensive loss. Upon adoption of ASC 326, the Corporation did not have any securities included in its portfolio where other-than-temporary-impairments had previously been recognized or that required an ACL. The following table illustrates the impact of adopting ASC 326. December 31, 2022 January 1, 2023 January 1, 2023 As Previously As Reported Reported Impact of Under (Dollars in thousands) (Incurred Loss) ASC 326 ASC 326 Assets: Loans, gross $ 1,635,718 $ 604 $ 1,636,322 Allowance for credit losses: Commercial 11,219 (22) 11,197 Consumer 3,330 107 3,437 Consumer finance 25,969 406 26,375 Allowance for credit losses 40,518 491 41,009 Loans, net 1,595,200 113 1,595,313 Net deferred tax asset 22,014 316 22,330 Liabilities: Reserve for credit losses on unfunded commitments — 1,501 1,501 Total equity: $ 196,233 $ (1,072) $ 195,161 The following accounting policies have been updated in connection with the adoption of ASC 326 and apply to periods beginning after December 31, 2022. Accounting policies applying to prior periods are described in the 2022 Annual Report, as discussed above. Securities: Impairment of debt securities occurs when the fair value of a security is less than its amortized cost. The Corporation has elected to exclude accrued interest receivable from the amortized cost basis. For debt securities available for sale, impairment is recognized in its entirety in net income if either (i) we intend to sell the security or (ii) it is more-likely-than-not that we will be required to sell the security before recovery of its amortized cost basis. If, however, the Corporation does not intend to sell the security and it is not more-likely-than-not that the Corporation will be required to sell the security before recovery, the Corporation evaluates unrealized losses to determine whether a decline in fair value below amortized cost basis is a result of a credit loss, which occurs when the amortized cost basis of the security exceeds the present value of the cash flows expected to be collected from the security, or other factors such as changes in market interest rates. If a credit loss exists, an allowance for credit losses is recorded that reflects the amount of the impairment related to credit losses, limited by the amount by which the security’s amortized cost basis exceeds its fair value. Changes in the allowance for credit losses are recorded in net income in the period of change and are included in provision for credit losses. Changes in the fair value of debt securities available for sale not resulting from credit losses are recorded in other comprehensive income (loss). The Corporation regularly reviews unrealized losses in its investments in securities and cash flows expected to be collected from impaired securities based on criteria including the extent to which market value is below amortized cost, the financial health of and specific prospects for the issuer, the Corporation’s intention with regard to holding the security to maturity and the likelihood that the Corporation would be required to sell the security before recovery. Loans Held for Investment: Loans acquired in a business combination are recorded at estimated fair value on the date of acquisition. In the case of loans that have experienced more than insignificant deterioration in credit quality since origination as of the acquisition date, the loan’s amortized cost basis is increased above estimated fair value by the amount of expected credit losses as of the acquisition date, and a corresponding allowance for credit losses is also recorded. Any remaining non-credit discount or premium for such purchased loans with credit deterioration (or PCD loans) and any fair value discount or premium for non-PCD loans is accreted or amortized as an adjustment to yield over the estimated lives of the loans using the level-yield method. There is no allowance for credit losses established at the acquisition date for non-PCD loans. A loan’s past due status is based on the contractual due date of the most delinquent payment due. Loans are generally placed on nonaccrual status when the collection of principal or interest is 90 days or more past due, or earlier, if collection is uncertain based on an evaluation of the net realizable value of the collateral and the financial strength of the borrower. Any accrued interest receivable on loans placed on nonaccrual status is reversed by an adjustment to interest income. Loans greater than 90 days past due may remain on accrual status if management determines it has adequate collateral to cover the principal and interest. For those loans that are carried on nonaccrual status, payments are first applied to principal outstanding. A loan may be returned to accrual status if the borrower has demonstrated a sustained period of repayment performance in accordance with the contractual terms of the loan and there is reasonable assurance the borrower will continue to make payments as agreed. These policies are applied consistently across our loan portfolio. In the ordinary course of business, the Corporation has entered into commitments to extend credit and standby letters of credit. Such financial instruments are recorded in the Consolidated Balance Sheets when they are funded. Allowance for Credit Losses on Loans: The allowance represents management’s current estimate of expected credit losses over the contractual term of loans held for investment, and is recorded at an amount that, in management’s judgment, reduces the recorded investment in loans to the net amount expected to be collected. No allowance for credit loss is recorded on accrued interest receivable and amounts written-off are reversed by an adjustment to interest income. Management’s judgment in determining the level of the allowance is based on evaluations of historical loan losses, current conditions and reasonable and supportable forecasts relevant to the collectability of loans. Loans that share common risk characteristics are evaluated collectively using a discounted cash flow approach for all loans except for overdraft balances, which are evaluated using a loss rate approach. The discounted cash flow approach used by the Corporation utilizes loan-level cash flow projections and pool-level assumptions. For commercial (except for loans to states and political subdivisions) and consumer loans, cash flow projections and estimated expected losses are based in part on twelve-month forecasts of the national unemployment rate that are reasonable and supportable and external observations of historical loan losses. Forecasts of the national unemployment rate are derived from the Federal Open Markets Committee of the Federal Reserve Board and incorporated into the estimate of expected credit losses using a statistical regression analysis. For periods beyond those for which reasonable and supportable forecasts are available, projections are based on a reversion of the national unemployment rate from the last forecast to a historical average level over the following six months. Cash flow projections and estimated expected losses for loans to states and political subdivisions are based on external loss observations for state and municipal debt obligations. For consumer finance loans, cash flow projections and estimated expected losses reflect historical average loss experience based on internal observations for auto loans and based on external loss observations for marine and recreational vehicle loans. Management’s estimate of the allowance for credit losses on loans that are collectively evaluated also includes a qualitative assessment of available information relevant to assessing collectability that is not captured in the loss estimation process. Factors considered by management include changes and expected changes in general market, economic and business conditions; the nature and volume of the loan portfolio; the volume and severity of delinquencies and adversely classified loan balances and the value of underlying collateral. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as more information becomes available. The evaluation also considers the following risk characteristics that are inherent in the loan portfolio: ● Commercial loans are comprised of mortgage loans on commercial real estate, real estate acquisition, development and constructions loans, and other business lending, and carry risks associated with the successful operation of a business or a real estate project and changes in the value of collateral. In addition to other risks associated with the ownership of real estate, the repayment of these loans may be dependent upon the profitability and cash flows of the business or project. Construction loans, which include loans to individuals for the construction of a residence that generally will be occupied by the borrower, also bear the risk that the general contractor, who may or may not be a loan customer, may be unable to finish the construction project as planned because of financial pressure unrelated to the project. In addition, there is risk associated with the value of collateral other than real estate which may depreciate over time and cannot be appraised with as much precision. ● Consumer loans are comprised primarily of residential mortgage loans and home equity lines secured by residential real estate and carry risks associated with the continued credit-worthiness of the borrower and changes in the value of the collateral. ● Consumer finance loans are comprised of indirect financing for purchases of automobiles and marine and recreational vehicles (RVs) and carry risks associated with the continued credit-worthiness of the borrower and changes in the value of the collateral, which are typically rapidly-depreciating vehicles. Consumer finance loans are more likely than real estate loans to be immediately adversely affected by job loss, divorce, illness or personal bankruptcy. Loans that do not share common risk characteristics with other loans are evaluated individually and are not included in the collective analysis. The allowance for credit losses on loans that are individually evaluated may be estimated based on their expected cash flows, or, in the case of loans for which repayment is expected substantially through the operation or sale of collateral when the borrower is experiencing financial difficulty, may be measured based on the fair value of the collateral less estimated costs to sell. Reserve for Unfunded Commitments: Recent Significant Accounting Pronouncements: under Topic 848 in the case of modifications to certain loans, borrowings and cash flow hedges during 2022 and 2023. These modifications have not had and are not expected to 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 | 9 Months Ended |
Sep. 30, 2023 | |
Securities | |
Securities | NOTE 2: Securities On January 1, 2023, the Corporation adopted ASC 326, which made changes to accounting for available for sale debt securities whereby credit losses should be presented as an allowance, rather than as a write-down when management does not intend to sell and does not believe that it is more likely than not they will be required to sell prior to maturity. In addition, ASC 326 requires financial assets measured at amortized cost to measure an expected credit loss under the CECL methodology that requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. All securities information presented as of September 30, 2023 is in accordance with ASC 326. All securities information presented as of December 31, 2022 or a prior date is presented in accordance with previously applicable GAAP. For further discussion on the Corporation’s accounting policies and policy elections related to the accounting standard update refer to Note 1. The Corporation’s debt securities, all of which are classified as available for sale, are summarized as follows: September 30, 2023 Gross Gross Amortized Unrealized Unrealized (Dollars in thousands) Cost Gains Losses Fair Value U.S. Treasury securities $ 52,785 $ — $ (1,391) $ 51,394 U.S. government agencies and corporations 106,455 — (12,405) 94,050 Mortgage-backed securities 183,552 2 (23,239) 160,315 Obligations of states and political subdivisions 142,593 97 (8,525) 134,165 Corporate and other debt securities 25,212 — (4,483) 20,729 $ 510,597 $ 99 $ (50,043) $ 460,653 December 31, 2022 Gross Gross Amortized Unrealized Unrealized (Dollars in thousands) Cost Gains Losses Fair Value U.S. Treasury securities $ 60,886 $ — $ (2,053) $ 58,833 U.S. government agencies and corporations 143,241 — (12,967) 130,274 Mortgage-backed securities 200,393 65 (20,540) 179,918 Obligations of states and political subdivisions 127,317 300 (6,790) 120,827 Corporate and other debt securities 25,291 — (2,552) 22,739 $ 557,128 $ 365 $ (44,902) $ 512,591 The amortized cost and estimated fair value of securities at September 30, 2023, by the earlier of contractual maturity or expected maturity, are shown below. The Corporation has elected to exclude accrued interest receivable, totaling $2.82 million at September 30, 2023, from the amortized cost basis of securities. Expected maturities will differ from contractual maturities because borrowers may have the right to prepay obligations with or without call or prepayment penalties. September 30, 2023 Amortized (Dollars in thousands) Cost Fair Value Due in one year or less $ 122,708 $ 117,683 Due after one year through five years 180,708 161,000 Due after five years through ten years 123,319 105,599 Due after ten years 83,862 76,371 $ 510,597 $ 460,653 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 and nine months ended September 30, 2023 and 2022 there were no sales of securities. Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2023 2022 2023 2022 Realized gains from sales, maturities and calls of securities: Gross realized gains $ — $ — $ — $ — Gross realized losses — — (5) — Net realized losses $ — $ — $ (5) $ — Proceeds from sales, maturities, calls and paydowns of securities $ 30,719 $ 12,700 $ 75,560 $ 43,681 The Corporation pledges securities primarily to secure public deposits, repurchase agreements and lines of credit that provide liquidity to the Corporation and C&F Bank. Securities with an aggregate amortized cost of $215.22 million and an aggregate fair value of $190.51 million were pledged at September 30, 2023. Securities with an aggregate amortized cost of $237.15 million and an aggregate fair value of $213.58 million were pledged at December 31, 2022. Securities in an unrealized loss position at September 30, 2023, 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 $ — — $ 51,394 $ 1,391 $ 51,394 $ 1,391 U.S. government agencies and corporations — — 94,050 12,405 94,050 12,405 Mortgage-backed securities 10,704 697 149,535 22,542 160,239 23,239 Obligations of states and political subdivisions 44,075 1,657 71,081 6,868 115,156 8,525 Corporate and other debt securities 3,260 489 17,469 3,994 20,729 4,483 Total temporarily impaired securities $ 58,039 $ 2,843 $ 383,529 $ 47,200 $ 441,568 $ 50,043 There were 615 debt securities with a fair value below the amortized cost basis, totaling $441.57 million of aggregate fair value as of September 30, 2023. The Corporation concluded that a credit loss does not exist in its securities portfolio at September 30, 2023, and no impairment loss has been recognized based on the fact that (1) changes in fair value were caused primarily by fluctuations in interest rates, (2) securities with unrealized losses had generally high credit quality, (3) 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 (4) 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, 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 $ 50,556 $ 1,368 $ 8,277 $ 685 $ 58,833 $ 2,053 U.S. government agencies and corporations 71,948 1,578 58,326 11,389 130,274 12,967 Mortgage-backed securities 73,301 5,441 104,563 15,099 177,864 20,540 Obligations of states and political subdivisions 60,838 2,434 32,120 4,356 92,958 6,790 Corporate and other debt securities 15,049 1,702 6,681 850 21,730 2,552 Total temporarily impaired securities $ 271,692 $ 12,523 $ 209,967 $ 32,379 $ 481,659 $ 44,902 The Corporation’s investment in restricted stock totaled $4.80 million at September 30, 2023 and $1.12 million at December 31, 2022 and consisted of Federal Home Loan Bank of Atlanta (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 impaired at September 30, 2023 and no impairment has been recognized. |
Loans
Loans | 9 Months Ended |
Sep. 30, 2023 | |
Loans | |
Loans | NOTE 3: Loans On January 1, 2023, the Corporation adopted ASC 326. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loan receivables. For further discussion on the Corporation’s accounting policies and policy elections related to the accounting standard update see Note 1. All loan information presented as of September 30, 2023 is in accordance with ASC 326. All loan information presented as of December 31, 2022 or a prior date is presented in accordance with previously applicable GAAP. The Corporation’s loans are stated at their face amount, net of deferred fees and costs and discounts, and consist of the classes of loans included in the table below. The Corporation has elected to exclude accrued interest receivable, totaling $7.19 million at September 30, 2023, from the recorded balance of loans. September 30, December 31, (Dollars in thousands) 2023 2022 Commercial real estate $ 645,467 $ 592,301 Commercial business 118,641 118,605 Construction - commercial real estate 62,994 49,136 Land acquisition and development 28,400 37,537 Builder lines 30,787 34,538 Construction - consumer real estate 12,046 10,539 Residential mortgage 290,325 266,267 Equity lines 48,027 43,300 Other consumer 9,867 8,938 Consumer finance - automobiles 403,154 411,112 Consumer finance - marine and recreational vehicles 68,021 63,445 Subtotal 1,717,729 1,635,718 Less allowance for credit losses (40,248) (40,518) Loans, net $ 1,677,481 $ 1,595,200 Other consumer loans included $207,000 and $284,000 of demand deposit overdrafts at September 30, 2023 and December 31, 2022, respectively. The following table shows the aging of the Corporation’s loan portfolio, by class, at September 30, 2023: 30-59 60-89 90+ 90+ Days Days Days Days Total Past Due and (Dollars in thousands) Past Due Past Due Past Due Past Due Current 1 Total Loans Accruing Commercial real estate $ 614 $ — $ 424 $ 1,038 $ 644,429 $ 645,467 $ 160 Commercial business 52 30 — 82 118,559 118,641 — Construction - commercial real estate — — — — 62,994 62,994 — Land acquisition and development — — — — 28,400 28,400 — Builder lines — — — — 30,787 30,787 — Construction - consumer real estate 282 — — 282 11,764 12,046 — Residential mortgage 633 71 280 984 289,341 290,325 280 Equity lines 268 9 51 328 47,699 48,027 — Other consumer — — — — 9,867 9,867 — Consumer finance - automobiles 12,233 2,121 831 15,185 387,969 403,154 — Consumer finance - marine and recreational vehicles 301 — 80 381 67,640 68,021 — Total $ 14,383 $ 2,231 $ 1,666 $ 18,280 $ 1,699,449 $ 1,717,729 $ 440 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 $141,000, 60-89 days past due of $9,000 and 90+ days past due of $1.23 million. The following table shows the Corporation’s recorded balance of loans on nonaccrual status as of September 30, 2023 and December 31, 2022. The Corporation recognized no interest income on loans on nonaccrual status as of September 30, 2023 and had no reversals and $14,000 of reversals of interest income upon placing loans on nonaccrual status during the three and nine months ended September 30, 2023, respectively. All nonaccrual loans at September 30, 2023 had an allowance for credit losses. September 30, December 31, (Dollars in thousands) 2023 2022 Commercial real estate $ 264 $ — Residential mortgage 141 156 Equity lines 60 108 Consumer finance - automobiles 831 842 Consumer finance - marine and recreational vehicles 80 83 Total $ 1,376 $ 1,189 Occasionally, the Corporation modifies loans to borrowers experiencing financial difficulties by providing principal forgiveness, term extensions, interest rate reductions or other-than-insignificant payment delays. As the effect of most modifications is already included in the allowance for credit losses due to the measurement methodologies used in its estimate, the allowance for credit losses is typically not adjusted upon modification. When principal forgiveness is provided at modification, the amount forgiven is charged against the allowance for credit losses. In some cases, the Corporation may provide multiple types of modifications on one loan and when multiple types of modifications occur within the same period, the combination of modifications is separately reported. The following table presents the amortized cost basis of loans as of September 30, 2023 that were both experiencing financial difficulty and modified during the three and nine months ended September 30, 2023. Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023 % of Total % of Total Class of Class of Amortized Financing Amortized Financing (Dollars in thousands) Cost Receivable Cost Receivable Term Extension Commercial real estate $ 969 0.2 % $ 969 0.2 % Residential mortgage 71 0.0 71 0.0 Total Term Extension $ 1,040 $ 1,040 Combination Term Extension and Interest Rate Reduction Commercial real estate — — 45 0.0 Total Combination Term Extension and Interest Rate Reduction $ — $ 45 Total $ 1,040 0.1 % $ 1,085 0.1 % The following table presents the financial effects of the loan modifications presented above to borrowers experiencing financial difficulty for the three and nine months ended September 30, 2023. Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023 Weighted- Weighted- Weighted- Weighted- Average Average Average Average Interest Rate Term Extension Interest Rate Term Extension (Dollars in thousands) Reduction (in years) Reduction (in years) Commercial real estate — % 2.0 0.75 % 2.1 Residential mortgage — 10.0 — 10.0 Total — % 2.5 0.75 % 2.6 The Corporation closely monitors the performance of modified loans to understand the effectiveness of its modification efforts. Upon the determination that all or a portion of a modified loan is uncollectible, that amount is charged against the allowance for credit losses. There were no payment defaults during the three and nine months ended September 30, 2023 of modified loans that were modified during the previous twelve months and all were current as of September 30, 2023. Prior to the adoption of ASC 326 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 December 31, 2022 of loans acquired in business combinations were as follows: December 31, 2022 Acquired Loans - Acquired Loans - Purchased Purchased Acquired Loans - (Dollars in thousands) Credit Impaired Performing Total Outstanding principal balance $ 4,522 $ 38,157 $ 42,679 Carrying amount Real estate – residential mortgage $ 300 $ 8,587 $ 8,887 Real estate – construction — — — Commercial, financial and agricultural 1 1,114 23,023 24,137 Equity lines 15 5,047 5,062 Consumer 26 755 781 Total acquired loans $ 1,455 $ 37,412 $ 38,867 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 PCI: Nine Months Ended (Dollars in thousands) September 30, 2022 Accretable yield, balance at beginning of period $ 3,111 Accretion (1,270) Reclassification of nonaccretable difference due to improvement in expected cash flows 1,603 Other changes, net 178 Accretable yield, balance at end of period $ 3,622 The past due status of loans as of December 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 Residential mortgage $ 1,649 $ 452 $ 20 $ 2,121 $ 300 $ 263,846 $ 266,267 $ — Real estate – construction: Construction - commercial real estate — — — — — 49,136 49,136 — Construction - consumer real estate — — — — — 10,539 10,539 — Commercial, financial and agricultural: Commercial real estate — — — — 1,114 591,187 592,301 — Land acquisition and development — — — — — 37,537 37,537 — Builder lines — — — — — 34,538 34,538 — Commercial business — 1 — 1 — 118,604 118,605 — Equity lines — 39 — 39 15 43,246 43,300 — Other consumer 9 — 191 200 26 8,712 8,938 191 Consumer finance: Automobiles 10,557 1,570 842 12,969 — 398,143 411,112 — Marine and recreational vehicles 114 35 83 232 — 63,213 63,445 — Total $ 12,329 $ 2,097 $ 1,136 $ 15,562 $ 1,455 $ 1,618,701 $ 1,635,718 $ 191 1 The table above includes nonaccrual loans that are current of $244,000 and 90+ days past due of $945,000. There were no loan modifications during the three and nine months ended September 30, 2022 that were classified as TDRs. There were no TDR payment defaults during the three and nine months ended September 30, 2022. Impaired loans, which included TDRs of $823,000, and the related allowance at December 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 $ 797 $ 36 $ 761 $ 51 $ 806 $ 35 Equity lines 26 26 — — 28 2 Total $ 823 $ 62 $ 761 $ 51 $ 834 $ 37 |
Allowance for Credit Losses
Allowance for Credit Losses | 9 Months Ended |
Sep. 30, 2023 | |
Allowance for Credit Losses | |
Allowance for Credit Losses | NOTE 4: Allowance for Credit Losses On January 1, 2023, the Corporation adopted ASC 326. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost. For further discussion on the Corporation’s accounting policies and policy elections related to the accounting standard update see Note 1. All allowance for credit loss information presented as of September 30, 2023 is in accordance with ASC 326. All allowance for credit loss information presented as of December 31, 2022 or a prior date is presented in accordance with previously applicable GAAP. The following table shows the allowance for credit losses activity by loan portfolio for the nine months ended September 30, 2023: Consumer (Dollars in thousands) Commercial Consumer Finance Total Allowance for credit losses: Balance at December 31, 2022 $ 11,219 $ 3,330 $ 25,969 $ 40,518 Impact of ASC 326 adoption on non-PCD loans (617) 98 406 (113) Impact of ASC 326 adoption on PCD loans 595 9 — 604 Provision charged to operations 839 362 4,250 5,451 Loans charged off (16) (240) (9,306) (9,562) Recoveries of loans previously charged off 144 136 3,070 3,350 Balance at September 30, 2023 $ 12,164 $ 3,695 $ 24,389 $ 40,248 The following table presents a breakdown of the provision for credit losses for the periods indicated. Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2023 2022 2023 2022 Provision for credit losses: Provision for loans $ 2,100 $ 1,200 $ 5,451 $ 1,402 Provision for unfunded commitments (50) — 349 — Total $ 2,050 $ 1,200 $ 5,800 $ 1,402 Commercial and consumer loans are assigned loan classification ratings based on their credit quality and risk of loss. These loan ratings are reviewed on a quarterly basis and updated as new information becomes available. The characteristics of these loan ratings are as follows: ● Pass rated loans are to persons or business entities with an acceptable financial condition, appropriate collateral margins, appropriate cash flow to service the existing loan, and an appropriate leverage ratio. The borrower has paid all obligations as agreed and it is expected that this type of payment history will continue. When necessary, acceptable personal guarantors support the loan. ● Special mention loans have a specific, identified weakness in the borrower’s operations and in the borrower’s ability to generate positive cash flow on a sustained basis. The borrower’s recent payment history may be characterized by late payments. The Corporation’s risk exposure is mitigated by collateral supporting the loan. The collateral is considered to be well-margined, well maintained, accessible and readily marketable. ● Substandard loans are considered to have specific and well-defined weaknesses that jeopardize the viability of the Corporation’s credit extension. The payment history for the loan has been inconsistent and the expected or projected primary repayment source may be inadequate to service the loan. The estimated net liquidation value of the collateral pledged and/or ability of the personal guarantor(s) to pay the loan may not adequately protect the Corporation. There is a distinct possibility that the Corporation will sustain some loss if the deficiencies associated with the loan are not corrected in the near term. A substandard loan would not automatically meet the Corporation’s definition of impaired unless the loan is significantly past due and the borrower’s performance and financial condition provide evidence that it is probable that the Corporation will be unable to collect all amounts due. ● Substandard nonaccrual loans have the same characteristics as substandard loans; however, they have a nonaccrual classification because it is probable that the Corporation will not be able to collect all amounts due. ● Doubtful rated loans have all the weaknesses inherent in a loan that is classified substandard but with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. The possibility of loss is extremely high. ● Loss rated loans are not considered collectible under normal circumstances and there is no realistic expectation for any future payment on the loan. Loss rated loans are fully charged off. The table below details the recorded balance of the classes of loans within the commercial and consumer loan portfolios by loan rating and year of origination as of September 30, 2023: Revolving Revolving Term Loans Recorded Balance by Origination Year Loans Loans Recorded Converted (Dollars in thousands) 2023 2022 2021 2020 2019 Prior Balance to Term Total Commercial real estate: Loan Rating Pass $ 64,729 $ 124,701 $ 155,982 $ 107,937 $ 38,611 $ 146,396 $ — $ 119 $ 638,475 Special Mention — — 5,763 — — 965 — — 6,728 Substandard Nonaccrual — — — — — 264 — — 264 Total $ 64,729 $ 124,701 $ 161,745 $ 107,937 $ 38,611 $ 147,625 $ — $ 119 $ 645,467 Commercial business: Loan Rating Pass $ 17,317 $ 19,330 $ 18,728 $ 14,045 $ 15,376 $ 14,196 $ 19,496 $ 88 $ 118,576 Special Mention 65 — — — — — — — 65 Total $ 17,382 $ 19,330 $ 18,728 $ 14,045 $ 15,376 $ 14,196 $ 19,496 $ 88 $ 118,641 Construction - commercial real estate: Loan Rating Pass $ 23,177 $ 30,632 $ 1,150 $ 8,035 $ — $ — $ — $ — $ 62,994 Total $ 23,177 $ 30,632 $ 1,150 $ 8,035 $ — $ — $ — $ — $ 62,994 Land acquisition and development: Loan Rating Pass $ 1,049 $ 6,062 $ 10,969 $ 9,992 $ — $ 328 $ — $ — $ 28,400 Total $ 1,049 $ 6,062 $ 10,969 $ 9,992 $ — $ 328 $ — $ — $ 28,400 Builder lines: Loan Rating Pass $ 16,390 $ 9,202 $ 4,585 $ — $ 404 $ — $ 206 $ — $ 30,787 Total $ 16,390 $ 9,202 $ 4,585 $ — $ 404 $ — $ 206 $ — $ 30,787 Construction - consumer real estate: Loan Rating Pass $ 5,543 $ 5,735 $ 768 $ — $ — $ — $ — $ — $ 12,046 Total $ 5,543 $ 5,735 $ 768 $ — $ — $ — $ — $ — $ 12,046 Residential mortgage: Loan Rating Pass $ 48,024 $ 93,630 $ 45,721 $ 42,276 $ 11,828 $ 48,123 $ — $ — $ 289,602 Special Mention — — 4 — — 96 — — 100 Substandard — — — 104 — 378 — — 482 Substandard Nonaccrual — — — — — 141 — — 141 Total $ 48,024 $ 93,630 $ 45,725 $ 42,380 $ 11,828 $ 48,738 $ — $ — $ 290,325 Equity lines: Loan Rating Pass $ — $ — $ 35 $ 70 $ — $ 878 $ 46,680 $ 299 $ 47,962 Substandard — — — — 5 — — — 5 Substandard Nonaccrual — — — — — 9 — 51 60 Total $ — $ — $ 35 $ 70 $ 5 $ 887 $ 46,680 $ 350 $ 48,027 Other consumer: Loan Rating Pass $ 4,856 $ 3,061 $ 717 $ 329 $ 227 $ 627 $ 50 $ — $ 9,867 Total $ 4,856 $ 3,061 $ 717 $ 329 $ 227 $ 627 $ 50 $ — $ 9,867 Total: Loan Rating Pass $ 181,085 $ 292,353 $ 238,655 $ 182,684 $ 66,446 $ 210,548 $ 66,432 $ 506 $ 1,238,709 Special Mention 65 — 5,767 — — 1,061 — — 6,893 Substandard — — — 104 5 378 — — 487 Substandard Nonaccrual — — — — — 414 — 51 465 Total $ 181,150 $ 292,353 $ 244,422 $ 182,788 $ 66,451 $ 212,401 $ 66,432 $ 557 $ 1,246,554 For consumer finance loans, the Corporation utilizes credit scores based on the methods developed and defined by the Fair Isaac Corporation (FICO) as a key indicator of the risk of loss to manage the portfolio and estimate the allowance for credit losses. A FICO Score is a three-digit number based on the information in an applicant’s credit reports. It helps lenders determine how likely an applicant is to repay a loan. This, in turn, affects the loan amount that may be approved, repayment terms, and interest rate. Consumer finance loans are assigned a credit rating based on borrowers’ credit scores at the time of origination and are categorized within ranges of credit ratings used internally that parallel FICO Score rating bands. The Corporation monitors the consumer finance loan portfolio by past due status (refer to Note 3) and by credit rating at the time of origination, which the Corporation believes serves as a relevant indicator of aggregate credit quality and risk of loan defaults in the portfolio based upon the use of FICO Scores over time for loan approval decisions and through experience analyzing loss patterns. The characteristics of these credit ratings are as follows: ● Very Good and Good credit rated borrowers are near or above the average FICO Score of consumers. Borrowers generally have limited to no prior credit difficulties or have shown extensive creditworthiness over a recent period of time. ● Fairly Good and Fair credit rated borrowers are approaching or slightly below the average FICO Score of consumers but typically have a credit profile acceptable to most lenders. Borrowers may have experienced minor credit difficulties or have a relatively limited credit history. ● Marginal credit rated borrowers are well below the average FICO Score of consumers. Borrowers may have limited access to traditional financing due to having experienced prior credit difficulties or have a limited credit history. The risk of future charge-offs is higher. The table below details the recorded balance of the classes of loans within the consumer finance loan portfolio by credit rating and year of origination as of September 30, 2023: Revolving Term Loans Recorded Balance by Origination Year Loans Revolving Converted (Dollars in thousands) 2023 2022 2021 2020 2019 Prior Loans to Term Total Consumer finance - automobiles: Credit rating Very good $ 7,814 $ 13,655 $ 4,904 $ 1,170 $ 338 $ 34 $ — $ — $ 27,915 Good 26,830 46,654 17,211 3,913 1,391 456 — — 96,455 Fairly good 36,253 60,018 29,527 7,068 4,816 2,061 — — 139,743 Fair 24,257 40,299 24,503 7,973 5,854 2,676 — — 105,562 Marginal 5,538 9,690 8,647 3,733 3,410 2,461 — — 33,479 Total $ 100,692 $ 170,316 $ 84,792 $ 23,857 $ 15,809 $ 7,688 $ — $ — $ 403,154 Consumer finance - marine and recreational vehicles: Credit rating Very good $ 6,475 $ 15,774 $ 10,291 $ 10,386 $ 2,654 $ 2,556 $ — $ — $ 48,136 Good 6,942 8,280 1,712 1,461 425 466 — — 19,286 Fairly good 267 225 38 31 — 38 — — 599 Total $ 13,684 $ 24,279 $ 12,041 $ 11,878 $ 3,079 $ 3,060 $ — $ — $ 68,021 Total: Credit rating Very good $ 14,289 $ 29,429 $ 15,195 $ 11,556 $ 2,992 $ 2,590 $ — $ — $ 76,051 Good 33,772 54,934 18,923 5,374 1,816 922 — — 115,741 Fairly good 36,520 60,243 29,565 7,099 4,816 2,099 — — 140,342 Fair 24,257 40,299 24,503 7,973 5,854 2,676 — — 105,562 Marginal 5,538 9,690 8,647 3,733 3,410 2,461 — — 33,479 Total $ 114,376 $ 194,595 $ 96,833 $ 35,735 $ 18,888 $ 10,748 $ — $ — $ 471,175 The following table details the current period gross charge-offs of loans by year of origination for the nine months ended September 30, 2023: Revolving Current Period Gross Charge-offs by Origination Year Loans Revolving Converted (Dollars in thousands) 2023 2022 2021 2020 2019 Prior Loans to Term Total Commercial business $ — $ 16 $ — $ — $ — $ — $ — $ — $ 16 Equity lines — — — — — 8 — — 8 Other consumer 1 199 25 — 3 2 3 — — 232 Consumer finance - automobiles 490 4,396 2,628 583 477 567 — — 9,141 Consumer finance - marine and recreational vehicles — 82 — 40 6 37 — — 165 Total $ 689 $ 4,519 $ 2,628 $ 626 $ 485 $ 615 $ — $ — $ 9,562 1 Gross charge-offs of other consumer loans for the nine months ended September 30, 2023 included $199,000 of demand deposit overdrafts that originated in 2023. Gross charge-offs increased for the nine months ended September 30, 2023 compared to the same period in 2022 due primarily to higher charge-offs within the consumer finance-automobile portfolio segment as a result of an increase in the number of delinquent loans following a period of historically low delinquencies during the COVID-19 pandemic, a decline in wholesale values of used automobiles from a recent peak during the COVID-19 pandemic and challenges in repossessing automobiles due to a decline in the number of repossession agencies, which results in a fully charged-off loan when the automobile cannot be repossessed. As of September 30, 2023, the Corporation had no collateral dependent loans for which repayment was expected to be derived substantially through the operation or sale of the collateral and where the borrower is experiencing financial difficulty. Prior to the adoption of ASC 326 The following table presents the changes in the allowance for loan losses by major classification during the nine months ended September 30, 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 (6) (62) (623) (60) 83 2,070 1,402 Loans charged off — — (11) — (193) (4,115) (4,319) Recoveries of loans previously charged off 16 — 13 2 93 3,516 3,640 Balance at September 30, 2022 $ 2,670 $ 794 $ 10,464 $ 535 $ 155 $ 26,262 $ 40,880 The following table presents, as of December 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 $ 51 $ — $ — $ — $ — $ — $ 51 Collectively evaluated for impairment 2,571 788 10,431 497 211 25,969 40,467 Acquired loans - PCI — — — — — — — Total allowance $ 2,622 $ 788 $ 10,431 $ 497 $ 211 $ 25,969 $ 40,518 Loans: Individually evaluated for impairment $ 797 $ — $ — $ 26 $ — $ — $ 823 Collectively evaluated for impairment 265,170 59,675 781,867 43,259 8,912 474,557 1,633,440 Acquired loans - PCI 300 — 1,114 15 26 — 1,455 Total loans $ 266,267 $ 59,675 $ 782,981 $ 43,300 $ 8,938 $ 474,557 $ 1,635,718 Loans by credit quality indicators as of December 31, 2022 were as follows: Special Substandard (Dollars in thousands) Pass Mention Substandard Nonaccrual Total 1 Residential mortgage $ 264,891 $ 518 $ 702 $ 156 $ 266,267 Real estate – construction: Construction - commercial real estate 49,136 — — — 49,136 Construction - consumer real estate 10,539 — — — 10,539 Commercial, financial and agricultural: Commercial real estate 585,707 738 5,856 — 592,301 Land acquisition and development 37,537 — — — 37,537 Builder lines 34,538 — — — 34,538 Commercial business 118,605 — — — 118,605 Equity lines 43,147 40 5 108 43,300 Other consumer 8,747 191 — — 8,938 $ 1,152,847 $ 1,487 $ 6,563 $ 264 $ 1,161,161 1 At December 31, 2022, the Corporation did no t have any loans classified as Doubtful or Loss. Non- (Dollars in thousands) Performing Performing Total Consumer finance: Automobiles $ 410,270 $ 842 $ 411,112 Marine and recreational vehicles 63,362 83 63,445 $ 473,632 $ 925 $ 474,557 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Sep. 30, 2023 | |
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 September 30, 2023 and December 31, 2022. There were no changes in the recorded balance of goodwill during the three and nine months ended September 30, 2023 or 2022. The Corporation had $1.48 million and $1.68 million of other intangible assets as of September 30, 2023 and December 31, 2022, 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: September 30, December 31, 2023 2022 Gross Gross Carrying Accumulated Carrying Accumulated (Dollars in thousands) Amount Amortization Amount Amortization Amortizable intangible assets: Core deposit intangibles $ 1,711 $ (557) $ 1,711 $ (464) Other amortizable intangibles 1,405 (1,084) 1,405 (973) Total $ 3,116 $ (1,641) $ 3,116 $ (1,437) Amortization expense was $68,000 and $75,000 for the three months ended September 30, 2023 and 2022, respectively, and $204,000 and $224,000 for the nine months ended September 30, 2023 and 2022, respectively. |
Equity, Other Comprehensive Inc
Equity, Other Comprehensive Income (Loss) and Earnings Per Share | 9 Months Ended |
Sep. 30, 2023 | |
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 Board of Directors authorized a program, effective December 1, 2022, to repurchase up to $10.00 million of the Corporation’s common stock through December 31, 2023 (the 2022 Repurchase Program). During the three and nine months ended September 30, 2023, the Corporation repurchased $1.31 million and $5.85 million, respectively, of its common stock under the 2022 Repurchase Program. As of September 30, 2023, there was $3.70 million remaining available for repurchases of the Corporation’s common stock under the 2022 Repurchase Program. The Corporation’s previous share repurchase program, which was authorized by the Board of Directors in November 2021, expired on November 30, 2022. There were 34,262 shares and 66,143 shares, respectively, repurchased under the previous share repurchase program during the three and nine months ended September 30, 2022 for an aggregate cost of $1.69 million and $3.30 million, respectively. Additionally during the nine months ended September 30, 2023 and 2022, the Corporation withheld 7,765 shares and 4,503 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 Income (Loss), Net Changes in each component of accumulated other comprehensive loss were as follows for the three months ended September 30, 2023 and 2022: Securities Defined Cash Available Benefit Flow (Dollars in thousands) For Sale Plan Hedges Total Accumulated other comprehensive (loss) income at June 30, 2023 $ (33,635) $ (3,195) $ 1,424 $ (35,406) Other comprehensive (loss) income arising during the period (7,369) — 179 (7,190) Related income tax effects 1,548 — (45) 1,503 (5,821) — 134 (5,687) Reclassifications into net income — 25 (1) 24 Related income tax effects — (5) — (5) — 20 (1) 19 Other comprehensive (loss) income, net of tax (5,821) 20 133 (5,668) Accumulated other comprehensive (loss) income at September 30, 2023 $ (39,456) $ (3,175) $ 1,557 $ (41,074) Securities Defined Cash Available Benefit Flow (Dollars in thousands) For Sale Plan Hedges Total Accumulated other comprehensive (loss) income at June 30, 2022 $ (24,333) $ (2,067) $ 875 $ (25,525) Other comprehensive (loss) income arising during the period (19,547) — 882 (18,665) Related income tax effects 4,104 — (228) 3,876 (15,443) — 654 (14,789) Reclassifications into net income — (7) (1) (8) Related income tax effects — 2 — 2 — (5) (1) (6) Other comprehensive (loss) income, net of tax (15,443) (5) 653 (14,795) Accumulated other comprehensive (loss) income at September 30, 2022 $ (39,776) $ (2,072) $ 1,528 $ (40,320) Changes in each component of accumulated other comprehensive loss were as follows for the nine months ended September 30, 2023 and 2022: Securities Defined Cash Available Benefit Flow (Dollars in thousands) For Sale Plan Hedges Total Accumulated other comprehensive (loss) income at December 31, 2022 $ (35,184) $ (3,236) $ 1,462 $ (36,958) Other comprehensive (loss) income arising during the period (5,413) — 131 (5,282) Related income tax effects 1,137 — (32) 1,105 (4,276) — 99 (4,177) Reclassifications into net income 5 77 (5) 77 Related income tax effects (1) (16) 1 (16) 4 61 (4) 61 Other comprehensive (loss) income, net of tax (4,272) 61 95 (4,116) Accumulated other comprehensive (loss) income at September 30, 2023 $ (39,456) $ (3,175) $ 1,557 $ (41,074) 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) Other comprehensive (loss) income arising during the period (50,902) — 2,695 (48,207) Related income tax effects 10,689 — (694) 9,995 (40,213) — 2,001 (38,212) Reclassifications into net income — (22) (5) (27) Related income tax effects — 5 1 6 — (17) (4) (21) Other comprehensive (loss) income, net of tax (40,213) (17) 1,997 (38,233) Accumulated other comprehensive (loss) income at September 30, 2022 $ (39,776) $ (2,072) $ 1,528 $ (40,320) The following table provides information regarding reclassifications from accumulated other comprehensive loss into net income for the three and nine months ended September 30, 2023 and 2022: Three Months Ended September 30, Nine Months Ended September 30, Line Item In the Consolidated (Dollars in thousands) 2023 2022 2023 2022 Statements of Income Securities available for sale: Reclassification of net realized losses into net income $ — $ — $ (5) $ — Net losses on sales, maturities and calls of available for sale securities Related income tax effects — — 1 — Income tax expense — — (4) — Net of tax Defined benefit plan: 1 Reclassification of recognized net actuarial losses into net income (42) (10) (128) (29) Noninterest expenses - Other Amortization of prior service credit into net income 17 17 51 51 Noninterest expenses - Other Related income tax effects 5 (2) 16 (5) Income tax expense (20) 5 (61) 17 Net of tax Cash flow hedges: Amortization of hedging gains into net income 1 1 5 5 Interest expense - Trust preferred capital notes Related income tax effects — — (1) (1) Income tax expense 1 1 4 4 Net of tax Total reclassifications into net income $ (19) $ 6 $ (61) $ 21 1 See “Note 8: Employee Benefit Plans,” for additional information. Earnings Per Share (EPS) The components of the Corporation’s EPS calculations are as follows: Three Months Ended September 30, (Dollars in thousands) 2023 2022 Net income attributable to C&F Financial Corporation $ 5,789 $ 6,480 Weighted average shares outstanding — 3,391,624 3,511,326 Nine Months Ended September 30, (Dollars in thousands) 2023 2022 Net income attributable to C&F Financial Corporation $ 18,536 $ 18,851 Weighted average shares outstanding — 3,426,845 3,531,064 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. |
Share-Based Plans
Share-Based Plans | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Plans | |
Share-Based Plans | NOTE 7: Share-Based Plans As permitted under the 2022 Stock and Incentive Compensation Plan, and previously under the 2013 Stock and Incentive Compensation Plan until April 19, 2022, the Corporation awards shares of restricted stock to certain key employees, non-employee directors and consultants. Restricted shares awarded to employees generally vest over periods up to five years, and restricted shares awarded to non-employee directors generally vest over periods up to three years. A summary of the activity for restricted stock awards for the periods indicated is presented below: 2023 Weighted- Average Grant Date Shares Fair Value Unvested, December 31, 2022 145,677 $ 48.88 Granted 18,540 57.32 Vested (30,043) 51.53 Forfeited (3,545) 49.37 Unvested, September 30, 2023 130,629 55.36 2022 Weighted- Average Grant Date Shares Fair Value Unvested, December 31, 2021 140,577 $ 48.57 Granted 16,430 50.56 Vested (15,920) 50.95 Forfeited (2,930) 48.23 Unvested, September 30, 2022 138,157 48.54 Share-based compensation expense, net of forfeitures, for the three and nine months ended September 30, 2023 was $581,000 ($412,000 after tax) and $1.51 million ($1.02 million after tax), respectively, for restricted stock granted during 2018 through 2023. Share-based compensation expense, net of forfeitures, for the three and nine months ended September 30, 2022 was $524,000 ($375,000 after tax) and $1.53 million ($1.09 million after tax), respectively, for restricted stock granted during 2017 through 2022. As of September 30, 2023, there was $2.90 million of total unrecognized compensation expense related to unvested restricted stock that will be recognized over the remaining requisite service periods. |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Sep. 30, 2023 | |
Employee Benefit Plans | |
Employee Benefit Plans | NOTE 8: Employee Benefit Plans The following table summarizes the components of net periodic benefit cost for the Bank’s non-contributory cash balance pension plan. Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2023 2022 2023 2022 Components of net periodic benefit cost: Service cost, included in salaries and employee benefits $ 344 $ 459 $ 1,032 $ 1,378 Other components of net periodic benefit cost: Interest cost 182 123 546 369 Expected return on plan assets (321) (415) (963) (1,245) Amortization of prior service credit (17) (17) (51) (51) Recognized net actuarial losses 42 10 128 29 Other components of net periodic benefit cost, included in other noninterest expense (114) (299) (340) (898) Net periodic benefit cost $ 230 $ 160 $ 692 $ 480 |
Fair Value of Assets and Liabil
Fair Value of Assets and Liabilities | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value of Assets and Liabilities | |
Fair Value of Assets and Liabilities | NOTE 9: Fair Value of Assets and Liabilities Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. U.S. GAAP requires that valuation techniques maximize the use of observable inputs and minimize the use of unobservable inputs. U.S. GAAP also establishes a fair value hierarchy which prioritizes the valuation inputs into three broad levels. Based on the underlying inputs, each fair value measurement in its entirety is reported in one of the three levels. These levels are: ● Level 1—Valuation is based upon quoted prices for identical instruments traded in active markets. Level 1 assets and liabilities include debt securities traded in an active exchange market, as well as U.S. Treasury securities. ● Level 2—Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. ● Level 3—Valuation is determined using model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect the Corporation’s estimates of assumptions that market participants would use in pricing the respective asset or liability. Valuation techniques may include the use of pricing models, discounted cash flow models and similar techniques. U.S. GAAP allows an entity the irrevocable option to elect fair value (the fair value option) for the initial and subsequent measurement for certain financial assets and liabilities on a contract-by-contract basis. The Corporation has elected to use fair value accounting for its entire portfolio of loans held for sale (LHFS). Assets and Liabilities Measured at Fair Value on a Recurring Basis The following describes the valuation techniques and inputs used by the Corporation in determining the fair value of certain assets recorded at fair value on a recurring basis in the financial statements. Securities available for sale. Other investments. The Corporation also holds certain equity investments consisting of equity interests in an independent insurance agency and a full service title and settlement agency (collectively, the agencies). These investments are subject to contractual sale restrictions that only permit the sale of the investments back to the agencies themselves. These investments are recorded at fair value and included in other assets in the Consolidated Balance Sheets. At September 30, 2023 and December 31, 2022, the fair value of these investments was $3.63 million and $3.65 million, respectively. These investments are recorded at fair value based on the contractual redemption value of the Corporation’s proportionate share of the agencies’ equity. Changes in fair value are recognized in net income and resulted in the recognition of unrealized gains of $120,000 and unrealized losses of $20,000 for the three and nine months ended September 30, 2023, respectively. The Corporation’s investments in these agencies are classified as Level 2. Loans held for sale. Derivative asset - IRLCs. Derivative asset/liability – interest rate swaps on loans. Derivative asset/liability – cash flow hedges. The following table presents the balances of financial assets and liabilities measured at fair value on a recurring basis. The fair value of forward sales of mortgage loans were not material to the consolidated financial statements of the Corporation at September 30, 2023 or December 31, 2022. September 30, 2023 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 $ — $ 51,394 $ — $ 51,394 U.S. government agencies and corporations — 94,050 — 94,050 Mortgage-backed securities — 160,315 — 160,315 Obligations of states and political subdivisions — 134,165 — 134,165 Corporate and other debt securities — 20,729 — 20,729 Total securities available for sale — 460,653 — 460,653 Loans held for sale — 25,469 — 25,469 Other investments — 3,629 — 3,629 Derivatives IRLC — 563 — 563 Interest rate swaps on loans — 7,132 — 7,132 Cash flow hedges — 2,073 — 2,073 Total assets $ — $ 499,519 $ — $ 499,519 Liabilities: Derivatives Interest rate swaps on loans $ — $ 7,132 $ — $ 7,132 Total liabilities $ — $ 7,132 $ — $ 7,132 December 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 $ — $ 58,833 $ — $ 58,833 U.S. government agencies and corporations — 130,274 — 130,274 Mortgage-backed securities — 179,918 — 179,918 Obligations of states and political subdivisions — 120,827 — 120,827 Corporate and other debt securities — 22,739 — 22,739 Total securities available for sale — 512,591 — 512,591 Loans held for sale — 14,259 — 14,259 Other investments — 3,649 — 3,649 Derivatives IRLC — 391 — 391 Interest rate swaps on loans — 6,328 — 6,328 Cash flow hedges — 1,941 — 1,941 Total assets $ — $ 539,159 $ — $ 539,159 Liabilities: Derivatives Interest rate swaps on loans $ — $ 6,328 $ — $ 6,328 Total liabilities $ — $ 6,328 $ — $ 6,328 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. Other Real Estate Owned (OREO). At September 30, 2023 and December 31, 2022 there was no OREO that was 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 September 30, 2023 Classified as Total Fair (Dollars in thousands) Value Level 1 Level 2 Level 3 Value Financial assets: Cash and short-term investments $ 73,002 $ 70,512 $ 2,490 $ — $ 73,002 Securities available for sale 460,653 — 460,653 — 460,653 Loans, net 1,677,481 — — 1,618,671 1,618,671 Loans held for sale 25,469 — 25,469 — 25,469 Other investments 3,629 — 3,629 — 3,629 Derivatives IRLC 563 — 563 — 563 Interest rate swaps on loans 7,132 — 7,132 — 7,132 Cash flow hedges 2,073 — 2,073 — 2,073 Bank-owned life insurance 21,248 — 21,248 — 21,248 Accrued interest receivable 10,039 10,039 — — 10,039 Financial liabilities: Demand and savings deposits 1,431,140 1,431,140 — — 1,431,140 Time deposits 597,289 — 591,113 — 591,113 Borrowings 141,042 — 125,792 — 125,792 Derivatives Interest rate swaps on loans 7,132 — 7,132 — 7,132 Accrued interest payable 3,188 3,188 — — 3,188 Carrying Fair Value Measurements at December 31, 2022 Classified as Total Fair (Dollars in thousands) Value Level 1 Level 2 Level 3 Value Financial assets: Cash and short-term investments $ 28,898 $ 26,661 $ 2,189 $ — $ 28,850 Securities available for sale 512,591 — 512,591 — 512,591 Loans, net 1,595,200 — — 1,538,062 1,538,062 Loans held for sale 14,259 — 14,259 — 14,259 Other investments 3,649 — 3,649 — 3,649 Derivatives IRLC 391 — 391 — 391 Interest rate swaps on loans 6,328 — 6,328 — 6,328 Cash flow hedges 1,941 — 1,941 — 1,941 Bank-owned life insurance 20,909 — 20,909 — 20,909 Accrued interest receivable 8,982 8,982 — — 8,982 Financial liabilities: Demand and savings deposits 1,622,566 1,622,566 — — 1,622,566 Time deposits 381,294 — 374,267 — 374,267 Borrowings 85,943 — 71,906 — 71,906 Derivatives Interest rate swaps on loans 6,328 — 6,328 — 6,328 Accrued interest payable 950 950 — — 950 |
Business Segments
Business Segments | 9 Months Ended |
Sep. 30, 2023 | |
Business Segments | |
Business Segments | NOTE 10: Business Segments The Corporation operates in a decentralized fashion in three business segments: community banking, mortgage banking and consumer finance. The community banking segment comprises C&F Bank, C&F Wealth Management, C&F Insurance and CVB Title. 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, debit card interchange activity, and net revenues from offering wealth management services and insurance products through third-party service providers. Through C&F Mortgage, 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 operations through C&F Finance consist primarily of net interest income earned on purchased retail installment sales contracts. The standalone 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 September 30, 2023 Community Mortgage Consumer (Dollars in thousands) Banking Banking Finance Other Eliminations Consolidated Interest income $ 25,066 $ 517 $ 12,020 $ — $ (5,917) $ 31,686 Interest expense 6,675 232 5,748 548 (5,979) 7,224 Net interest income 18,391 285 6,272 (548) 62 24,462 Gain on sales of loans — 1,198 — — 22 1,220 Other noninterest income 4,221 1,144 (19) (496) (50) 4,800 Net revenue 22,612 2,627 6,253 (1,044) 34 30,482 Provision for credit losses 500 — 1,550 — — 2,050 Noninterest expense 15,129 2,631 3,761 (172) (17) 21,332 Income (loss) before taxes 6,983 (4) 942 (872) 51 7,100 Income tax expense (benefit) 1,298 1 260 (246) 10 1,323 Net income (loss) $ 5,685 $ (5) $ 682 $ (626) $ 41 $ 5,777 Other data: Capital expenditures $ 251 $ 12 $ 146 $ — $ — $ 409 Depreciation and amortization $ 838 $ 18 $ 100 $ — $ — $ 956 Three Months Ended September 30, 2022 Community Mortgage Consumer (Dollars in thousands) Banking Banking Finance Other Eliminations Consolidated Interest income $ 18,766 $ 556 $ 11,175 $ — $ (4,171) $ 26,326 Interest expense 1,353 247 3,941 593 (4,188) 1,946 Net interest income 17,413 309 7,234 (593) 17 24,380 Gain on sales of loans — 1,904 — — (34) 1,870 Other noninterest income 3,903 1,197 49 (826) (64) 4,259 Net revenue 21,316 3,410 7,283 (1,419) (81) 30,509 Provision for loan losses — — 1,200 — — 1,200 Noninterest expense 14,621 3,398 3,639 (553) (16) 21,089 Income (loss) before taxes 6,695 12 2,444 (866) (65) 8,220 Income tax expense (benefit) 1,274 (12) 665 (238) (14) 1,675 Net income (loss) $ 5,421 $ 24 $ 1,779 $ (628) $ (51) $ 6,545 Other data: Capital expenditures $ 961 $ 3 $ — $ — $ — $ 964 Depreciation and amortization $ 923 $ 57 $ 102 $ — $ — $ 1,082 Nine Months Ended September 30, 2023 Community Mortgage Consumer (Dollars in thousands) Banking Banking Finance Other Eliminations Consolidated Interest income $ 72,531 $ 1,312 $ 35,313 $ — $ (17,427) $ 91,729 Interest expense 16,268 513 17,060 1,696 (17,573) 17,964 Net interest income 56,263 799 18,253 (1,696) 146 73,765 Gain on sales of loans — 4,983 — — (53) 4,930 Other noninterest income 12,173 3,413 25 840 (155) 16,296 Net revenue 68,436 9,195 18,278 (856) (62) 94,991 Provision for loan losses 1,550 — 4,250 — — 5,800 Noninterest expense 45,063 8,459 10,909 1,839 (46) 66,224 Income (loss) before taxes 21,823 736 3,119 (2,695) (16) 22,967 Income tax expense (benefit) 4,081 168 858 (790) (8) 4,309 Net income (loss) $ 17,742 $ 568 $ 2,261 $ (1,905) $ (8) $ 18,658 Other data: Capital expenditures $ 861 $ 12 $ 146 $ — $ — $ 1,019 Depreciation and amortization $ 2,558 $ 61 $ 300 $ — $ — $ 2,919 Nine Months Ended September 30, 2022 Community Mortgage Consumer (Dollars in thousands) Banking Banking Finance Other Eliminations Consolidated Interest income $ 50,612 $ 1,674 $ 30,975 $ — $ (10,312) $ 72,949 Interest expense 3,700 561 9,800 1,762 (10,361) 5,462 Net interest income 46,912 1,113 21,175 (1,762) 49 67,487 Gain on sales of loans — 7,251 — — (488) 6,763 Other noninterest income 11,962 3,918 164 (4,174) (112) 11,758 Net revenue 58,874 12,282 21,339 (5,936) (551) 86,008 Provision for loan losses (700) 32 2,070 — — 1,402 Noninterest expense 42,605 10,045 10,978 (3,186) (43) 60,399 Income (loss) before taxes 16,969 2,205 8,291 (2,750) (508) 24,207 Income tax expense (benefit) 3,215 533 2,255 (752) (107) 5,144 Net income (loss) $ 13,754 $ 1,672 $ 6,036 $ (1,998) $ (401) $ 19,063 Other data: Capital expenditures $ 2,232 $ 65 $ 17 $ — $ — $ 2,314 Depreciation and amortization $ 2,817 $ 180 $ 308 $ — $ — $ 3,305 Community Mortgage Consumer (Dollars in thousands) Banking Banking Finance Other Eliminations Consolidated Total assets at September 30, 2023 $ 2,299,620 $ 35,995 $ 478,346 $ 35,984 $ (428,240) $ 2,421,705 Total assets at December 31, 2022 $ 2,206,299 $ 24,500 $ 479,864 $ 43,241 $ (421,587) $ 2,332,317 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 term SOFR plus 211.5 basis points, with a floor of 3.5 percent and a ceiling of 6.0 percent, and fixed rate notes that carry interest at rates ranging from 3.2 percent to 5.1 percent. The community banking segment acquires certain residential real estate loans from the mortgage banking segment at prices similar to those paid by third-party investors. These transactions are eliminated to reach consolidated totals. In addition to unallocated expenses recorded by the holding company, certain overhead costs are incurred by the community banking segment and are not allocated to the mortgage banking and consumer finance segments. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingent Liabilities | |
Commitments and Contingent Liabilities | NOTE 11: Commitments and Contingent Liabilities The Corporation enters into commitments to extend credit in the normal course of business to meet the financing needs of its customers, including loan commitments and standby letters of credit. These instruments involve elements of credit and interest rate risk in excess of the amounts recorded on the Consolidated Balance Sheets. The Corporation’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit written is represented by the contractual amount of these instruments. The Corporation uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments. Collateral is obtained based on management’s credit assessment of the customer. Loan commitments are agreements to extend credit to a customer provided that there are no violations of the terms of the contract prior to funding. Commitments have fixed expiration dates or other termination clauses and may require payment of a fee by the customer. Because many of the commitments may expire without being completely drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Bank evaluates each customer’s creditworthiness on a case-by-case basis. The amount of loan commitments at the Bank was $432.66 million at September 30, 2023 and $394.75 million at December 31, 2022, which does not include IRLCs at the mortgage banking segment, which are discussed in Note 12. Standby letters of credit are written conditional commitments issued by the Bank to guarantee the performance of a customer to a third party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to customers. The total contract amount of standby letters of credit, whose contract amounts represent credit risk, was $10.42 million at September 30, 2023 and $16.26 million at December 31, 2022. The mortgage banking segment sells the majority of the residential mortgage loans it originates to third-party investors. Additionally, the community banking segment purchases residential mortgage loans from the mortgage banking segment under terms and conditions similar 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 portion of its business. Recourse periods for early payment default for the remaining investors vary from 90 days up to one year. Recourse periods for borrower misrepresentation or fraud, or underwriting error do not have a stated time limit. The mortgage banking segment maintains an allowance for indemnifications that represents management’s estimate of losses that are probable of arising under these recourse provisions. As performance data for loans that have been sold is not made available to the mortgage banking segment by the investors, the estimate of potential losses is inherently subjective and is based on historical indemnification payments and management’s assessment of current conditions that may contribute to indemnified losses on mortgage loans that have been sold in the secondary market. For the three and nine months ended September 30, 2023, the Corporation recorded a reversal of provision for indemnifications of $200,000, and $435,000, respectively, and recorded a provision for indemnifications of $11,000 and a reversal of provision for indemnifications of $858,000 for the three and nine months ended September 30, 2022, respectively, which is included in “Noninterest Expenses – Other” on the Consolidated Statements of Income. No indemnification payments were made during the three and nine months ended September 30, 2023 or 2022. The allowance for indemnifications was $1.96 million and $2.39 million at September 30, 2023 and December 31, 2022. |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Financial Instruments | |
Derivative Financial Instruments | NOTE 12: Derivative Financial Instruments The Corporation uses derivative financial instruments primarily to manage risks to the Corporation associated with changing interest rates, and to assist customers with their risk management objectives. The Corporation designates certain interest rate swaps as hedging instruments in qualifying cash flow hedges. The changes in fair value of these designated hedging instruments is reported as a component of other comprehensive income (loss). 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 (loss) 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 (loss) is reclassified into earnings in the period(s) during which the forecasted interest payments affect earnings. Amounts reclassified into earnings and interest receivable or payable under designated interest rate swaps are reported in interest expense. The Corporation does not expect any unrealized losses related to cash flow hedges to be reclassified into earnings in the next twelve months. Loan swaps Mortgage banking At September 30, 2023, the mortgage banking segment had $40.91 million of IRLCs and $27.75 million of unpaid principal on mortgage loans held for sale for which it managed interest rate risk using best-efforts forward sales contracts for $68.66 million in mortgage loans. At December 31, 2022, the mortgage banking segment had $42.28 million of IRLCs and $16.41 million of unpaid principal on mortgage loans held for sale for which it managed interest rate risk using best-efforts forward sales contracts for $58.69 million in mortgage loans. The following tables summarize key elements of the Corporation’s derivative instruments. September 30, 2023 Notional (Dollars in thousands) Amount Assets Liabilities Cash flow hedges: Interest rate swap contracts $ 25,000 $ 2,073 $ — Not designated as hedges: Customer-related interest rate swap contracts: Matched interest rate swaps with borrower 109,976 — 7,132 Matched interest rate swaps with counterparty 109,976 7,132 — Mortgage banking contracts: IRLCs 40,909 563 — December 31, 2022 Notional (Dollars in thousands) Amount Assets Liabilities Cash flow hedges: Interest rate swap contracts $ 25,000 $ 1,941 $ — Not designated as hedges: Customer-related interest rate swap contracts: Matched interest rate swaps with borrower 85,856 — 6,328 Matched interest rate swaps with counterparty 85,856 6,328 — Mortgage banking contracts: IRLCs 42,284 391 — The Corporation and the Bank are required to maintain cash collateral with dealer counterparties for interest rate swap relationships in a loss position. At both September 30, 2023 and December 31, 2022, there was cash collateral maintained with dealer counterparties. |
Other Noninterest Expenses
Other Noninterest Expenses | 9 Months Ended |
Sep. 30, 2023 | |
Other Noninterest Expenses | |
Other Noninterest Expenses | NOTE 13: Other Noninterest Expenses The following table presents the significant components in the Consolidated Statements of Income line “Noninterest Expenses-Other.” Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2023 2022 2023 2022 Data processing fees $ 2,567 $ 2,675 $ 7,863 $ 7,921 Professional fees 707 684 2,096 2,179 Insurance expense 414 293 1,203 767 Marketing and advertising expenses 361 441 1,172 1,415 Telecommunication expenses 344 350 970 1,047 Mortgage banking loan processing expenses 272 404 854 1,405 Provision for indemnifications (200) 11 (435) (858) All other noninterest expenses 2,002 1,847 5,685 5,316 Total other noninterest expenses $ 6,467 $ 6,705 $ 19,408 $ 19,192 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
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. |
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. (C&F Insurance) and CVB Title Services, Inc. (CVB Title), 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 and CVB Title were organized for the primary purpose of owning equity interests in an independent insurance agency and a full service title and settlement agency, respectively. Business segment data is presented in Note 10. |
Basis of Presentation | Basis of Presentation: |
Reclassification | Reclassification: |
Derivative Financial Instruments | Derivative Financial Instruments: other asset other liability |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Standard: 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” ASC 326 introduced an approach based on current expected credit losses (CECL) to estimate credit losses on certain types of financial instruments, replacing the incurred loss methodology from prior GAAP. It also applies to unfunded commitments to extend credit, including loan commitments, standby letters of credit, and other similar instruments. It modified the impairment model for available-for-sale debt securities and provided for a simplified accounting model for purchased financial assets with credit deterioration since their origination. It also modified the measurement principles for modifications of loans to borrowers experiencing financial difficulty, including how the allowance for credit losses (ACL) is measured for such loans. The amendments of ASC 326, upon adoption, were applied on a modified retrospective basis, recording an increase in the reported balance of loans and the allowance for credit losses on loans, recognizing a liability for credit losses on commitments to extend credit, and reducing total equity of both the Corporation and of C&F Bank, which resulted in a reduction of regulatory capital of C&F Bank. As a result of adopting ASC 326, the Corporation recorded a decrease to opening retained earnings of $1.1 million. ASC 326 also replaced the Corporation’s previous accounting policies for purchased credit-impaired (PCI) loans and troubled-debt restructurings (TDRs). With the adoption of ASC 326, loans previously designated as PCI loans were designated as purchased loans with credit deterioration (PCD loans). The Corporation adopted ASC 326 using the prospective transition approach for PCD loans that were previously identified as PCI and accounted for under ASC 310-30. On January 1, 2023, the Corporation’s PCD loans were adjusted to reflect the addition of $604,000 of expected credit losses to the amortized cost basis of the loans and a corresponding increase to the ACL. The remaining noncredit discount, the difference between the adjusted amortized cost basis and the outstanding principal balance on PCD loans, will be accreted into interest income over the estimated remaining lives of the loans using the effective interest rate method. The evaluation of the ACL will include PCD loans together with other loans that share similar risk characteristics, rather than using the separate pools that were used under PCI accounting. The adoption of ASC 326 also replaced previous TDR accounting guidance, and the evaluation of the ACL will include loans previously designated as TDRs together with other loans that share similar risk characteristics. The adoption of ASC 326 did not affect the carrying value of debt securities or the amount of unrealized gains and losses recorded in accumulated other comprehensive loss. Upon adoption of ASC 326, the Corporation did not have any securities included in its portfolio where other-than-temporary-impairments had previously been recognized or that required an ACL. The following table illustrates the impact of adopting ASC 326. December 31, 2022 January 1, 2023 January 1, 2023 As Previously As Reported Reported Impact of Under (Dollars in thousands) (Incurred Loss) ASC 326 ASC 326 Assets: Loans, gross $ 1,635,718 $ 604 $ 1,636,322 Allowance for credit losses: Commercial 11,219 (22) 11,197 Consumer 3,330 107 3,437 Consumer finance 25,969 406 26,375 Allowance for credit losses 40,518 491 41,009 Loans, net 1,595,200 113 1,595,313 Net deferred tax asset 22,014 316 22,330 Liabilities: Reserve for credit losses on unfunded commitments — 1,501 1,501 Total equity: $ 196,233 $ (1,072) $ 195,161 The following accounting policies have been updated in connection with the adoption of ASC 326 and apply to periods beginning after December 31, 2022. Accounting policies applying to prior periods are described in the 2022 Annual Report, as discussed above. |
Securities | Securities: Impairment of debt securities occurs when the fair value of a security is less than its amortized cost. The Corporation has elected to exclude accrued interest receivable from the amortized cost basis. For debt securities available for sale, impairment is recognized in its entirety in net income if either (i) we intend to sell the security or (ii) it is more-likely-than-not that we will be required to sell the security before recovery of its amortized cost basis. If, however, the Corporation does not intend to sell the security and it is not more-likely-than-not that the Corporation will be required to sell the security before recovery, the Corporation evaluates unrealized losses to determine whether a decline in fair value below amortized cost basis is a result of a credit loss, which occurs when the amortized cost basis of the security exceeds the present value of the cash flows expected to be collected from the security, or other factors such as changes in market interest rates. If a credit loss exists, an allowance for credit losses is recorded that reflects the amount of the impairment related to credit losses, limited by the amount by which the security’s amortized cost basis exceeds its fair value. Changes in the allowance for credit losses are recorded in net income in the period of change and are included in provision for credit losses. Changes in the fair value of debt securities available for sale not resulting from credit losses are recorded in other comprehensive income (loss). The Corporation regularly reviews unrealized losses in its investments in securities and cash flows expected to be collected from impaired securities based on criteria including the extent to which market value is below amortized cost, the financial health of and specific prospects for the issuer, the Corporation’s intention with regard to holding the security to maturity and the likelihood that the Corporation would be required to sell the security before recovery. |
Loans Held for Investment | Loans Held for Investment: Loans acquired in a business combination are recorded at estimated fair value on the date of acquisition. In the case of loans that have experienced more than insignificant deterioration in credit quality since origination as of the acquisition date, the loan’s amortized cost basis is increased above estimated fair value by the amount of expected credit losses as of the acquisition date, and a corresponding allowance for credit losses is also recorded. Any remaining non-credit discount or premium for such purchased loans with credit deterioration (or PCD loans) and any fair value discount or premium for non-PCD loans is accreted or amortized as an adjustment to yield over the estimated lives of the loans using the level-yield method. There is no allowance for credit losses established at the acquisition date for non-PCD loans. A loan’s past due status is based on the contractual due date of the most delinquent payment due. Loans are generally placed on nonaccrual status when the collection of principal or interest is 90 days or more past due, or earlier, if collection is uncertain based on an evaluation of the net realizable value of the collateral and the financial strength of the borrower. Any accrued interest receivable on loans placed on nonaccrual status is reversed by an adjustment to interest income. Loans greater than 90 days past due may remain on accrual status if management determines it has adequate collateral to cover the principal and interest. For those loans that are carried on nonaccrual status, payments are first applied to principal outstanding. A loan may be returned to accrual status if the borrower has demonstrated a sustained period of repayment performance in accordance with the contractual terms of the loan and there is reasonable assurance the borrower will continue to make payments as agreed. These policies are applied consistently across our loan portfolio. In the ordinary course of business, the Corporation has entered into commitments to extend credit and standby letters of credit. Such financial instruments are recorded in the Consolidated Balance Sheets when they are funded. |
Allowance for Credit Losses on Loans | Allowance for Credit Losses on Loans: The allowance represents management’s current estimate of expected credit losses over the contractual term of loans held for investment, and is recorded at an amount that, in management’s judgment, reduces the recorded investment in loans to the net amount expected to be collected. No allowance for credit loss is recorded on accrued interest receivable and amounts written-off are reversed by an adjustment to interest income. Management’s judgment in determining the level of the allowance is based on evaluations of historical loan losses, current conditions and reasonable and supportable forecasts relevant to the collectability of loans. Loans that share common risk characteristics are evaluated collectively using a discounted cash flow approach for all loans except for overdraft balances, which are evaluated using a loss rate approach. The discounted cash flow approach used by the Corporation utilizes loan-level cash flow projections and pool-level assumptions. For commercial (except for loans to states and political subdivisions) and consumer loans, cash flow projections and estimated expected losses are based in part on twelve-month forecasts of the national unemployment rate that are reasonable and supportable and external observations of historical loan losses. Forecasts of the national unemployment rate are derived from the Federal Open Markets Committee of the Federal Reserve Board and incorporated into the estimate of expected credit losses using a statistical regression analysis. For periods beyond those for which reasonable and supportable forecasts are available, projections are based on a reversion of the national unemployment rate from the last forecast to a historical average level over the following six months. Cash flow projections and estimated expected losses for loans to states and political subdivisions are based on external loss observations for state and municipal debt obligations. For consumer finance loans, cash flow projections and estimated expected losses reflect historical average loss experience based on internal observations for auto loans and based on external loss observations for marine and recreational vehicle loans. Management’s estimate of the allowance for credit losses on loans that are collectively evaluated also includes a qualitative assessment of available information relevant to assessing collectability that is not captured in the loss estimation process. Factors considered by management include changes and expected changes in general market, economic and business conditions; the nature and volume of the loan portfolio; the volume and severity of delinquencies and adversely classified loan balances and the value of underlying collateral. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as more information becomes available. The evaluation also considers the following risk characteristics that are inherent in the loan portfolio: ● Commercial loans are comprised of mortgage loans on commercial real estate, real estate acquisition, development and constructions loans, and other business lending, and carry risks associated with the successful operation of a business or a real estate project and changes in the value of collateral. In addition to other risks associated with the ownership of real estate, the repayment of these loans may be dependent upon the profitability and cash flows of the business or project. Construction loans, which include loans to individuals for the construction of a residence that generally will be occupied by the borrower, also bear the risk that the general contractor, who may or may not be a loan customer, may be unable to finish the construction project as planned because of financial pressure unrelated to the project. In addition, there is risk associated with the value of collateral other than real estate which may depreciate over time and cannot be appraised with as much precision. ● Consumer loans are comprised primarily of residential mortgage loans and home equity lines secured by residential real estate and carry risks associated with the continued credit-worthiness of the borrower and changes in the value of the collateral. ● Consumer finance loans are comprised of indirect financing for purchases of automobiles and marine and recreational vehicles (RVs) and carry risks associated with the continued credit-worthiness of the borrower and changes in the value of the collateral, which are typically rapidly-depreciating vehicles. Consumer finance loans are more likely than real estate loans to be immediately adversely affected by job loss, divorce, illness or personal bankruptcy. Loans that do not share common risk characteristics with other loans are evaluated individually and are not included in the collective analysis. The allowance for credit losses on loans that are individually evaluated may be estimated based on their expected cash flows, or, in the case of loans for which repayment is expected substantially through the operation or sale of collateral when the borrower is experiencing financial difficulty, may be measured based on the fair value of the collateral less estimated costs to sell. |
Reserve for Unfunded Commitments | Reserve for Unfunded Commitments: |
Recent Significant Accounting Pronouncements | Recent Significant Accounting Pronouncements: under Topic 848 in the case of modifications to certain loans, borrowings and cash flow hedges during 2022 and 2023. These modifications have not had and are not expected to 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) | 9 Months Ended |
Sep. 30, 2023 | |
Adoption of New Accounting Standards | |
Schedule of impact of adopting ASC 326 | December 31, 2022 January 1, 2023 January 1, 2023 As Previously As Reported Reported Impact of Under (Dollars in thousands) (Incurred Loss) ASC 326 ASC 326 Assets: Loans, gross $ 1,635,718 $ 604 $ 1,636,322 Allowance for credit losses: Commercial 11,219 (22) 11,197 Consumer 3,330 107 3,437 Consumer finance 25,969 406 26,375 Allowance for credit losses 40,518 491 41,009 Loans, net 1,595,200 113 1,595,313 Net deferred tax asset 22,014 316 22,330 Liabilities: Reserve for credit losses on unfunded commitments — 1,501 1,501 Total equity: $ 196,233 $ (1,072) $ 195,161 |
Securities (Tables)
Securities (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Securities | |
Summary of available for sale debt securities | September 30, 2023 Gross Gross Amortized Unrealized Unrealized (Dollars in thousands) Cost Gains Losses Fair Value U.S. Treasury securities $ 52,785 $ — $ (1,391) $ 51,394 U.S. government agencies and corporations 106,455 — (12,405) 94,050 Mortgage-backed securities 183,552 2 (23,239) 160,315 Obligations of states and political subdivisions 142,593 97 (8,525) 134,165 Corporate and other debt securities 25,212 — (4,483) 20,729 $ 510,597 $ 99 $ (50,043) $ 460,653 December 31, 2022 Gross Gross Amortized Unrealized Unrealized (Dollars in thousands) Cost Gains Losses Fair Value U.S. Treasury securities $ 60,886 $ — $ (2,053) $ 58,833 U.S. government agencies and corporations 143,241 — (12,967) 130,274 Mortgage-backed securities 200,393 65 (20,540) 179,918 Obligations of states and political subdivisions 127,317 300 (6,790) 120,827 Corporate and other debt securities 25,291 — (2,552) 22,739 $ 557,128 $ 365 $ (44,902) $ 512,591 |
Schedule of amortized cost and estimated fair value of securities, by the earlier of contractual maturity or expected maturity | September 30, 2023 Amortized (Dollars in thousands) Cost Fair Value Due in one year or less $ 122,708 $ 117,683 Due after one year through five years 180,708 161,000 Due after five years through ten years 123,319 105,599 Due after ten years 83,862 76,371 $ 510,597 $ 460,653 |
Schedule of gross realized gains and losses and the proceeds | Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2023 2022 2023 2022 Realized gains from sales, maturities and calls of securities: Gross realized gains $ — $ — $ — $ — Gross realized losses — — (5) — Net realized losses $ — $ — $ (5) $ — Proceeds from sales, maturities, calls and paydowns of securities $ 30,719 $ 12,700 $ 75,560 $ 43,681 |
Schedule of securities in an unrealized loss position | Securities in an unrealized loss position at September 30, 2023, 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 $ — — $ 51,394 $ 1,391 $ 51,394 $ 1,391 U.S. government agencies and corporations — — 94,050 12,405 94,050 12,405 Mortgage-backed securities 10,704 697 149,535 22,542 160,239 23,239 Obligations of states and political subdivisions 44,075 1,657 71,081 6,868 115,156 8,525 Corporate and other debt securities 3,260 489 17,469 3,994 20,729 4,483 Total temporarily impaired securities $ 58,039 $ 2,843 $ 383,529 $ 47,200 $ 441,568 $ 50,043 Securities in an unrealized loss position at December 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 $ 50,556 $ 1,368 $ 8,277 $ 685 $ 58,833 $ 2,053 U.S. government agencies and corporations 71,948 1,578 58,326 11,389 130,274 12,967 Mortgage-backed securities 73,301 5,441 104,563 15,099 177,864 20,540 Obligations of states and political subdivisions 60,838 2,434 32,120 4,356 92,958 6,790 Corporate and other debt securities 15,049 1,702 6,681 850 21,730 2,552 Total temporarily impaired securities $ 271,692 $ 12,523 $ 209,967 $ 32,379 $ 481,659 $ 44,902 |
Loans (Tables)
Loans (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Loans | |
Summary of classes of loans | September 30, December 31, (Dollars in thousands) 2023 2022 Commercial real estate $ 645,467 $ 592,301 Commercial business 118,641 118,605 Construction - commercial real estate 62,994 49,136 Land acquisition and development 28,400 37,537 Builder lines 30,787 34,538 Construction - consumer real estate 12,046 10,539 Residential mortgage 290,325 266,267 Equity lines 48,027 43,300 Other consumer 9,867 8,938 Consumer finance - automobiles 403,154 411,112 Consumer finance - marine and recreational vehicles 68,021 63,445 Subtotal 1,717,729 1,635,718 Less allowance for credit losses (40,248) (40,518) Loans, net $ 1,677,481 $ 1,595,200 |
Schedule of past due status of loans | 30-59 60-89 90+ 90+ Days Days Days Days Total Past Due and (Dollars in thousands) Past Due Past Due Past Due Past Due Current 1 Total Loans Accruing Commercial real estate $ 614 $ — $ 424 $ 1,038 $ 644,429 $ 645,467 $ 160 Commercial business 52 30 — 82 118,559 118,641 — Construction - commercial real estate — — — — 62,994 62,994 — Land acquisition and development — — — — 28,400 28,400 — Builder lines — — — — 30,787 30,787 — Construction - consumer real estate 282 — — 282 11,764 12,046 — Residential mortgage 633 71 280 984 289,341 290,325 280 Equity lines 268 9 51 328 47,699 48,027 — Other consumer — — — — 9,867 9,867 — Consumer finance - automobiles 12,233 2,121 831 15,185 387,969 403,154 — Consumer finance - marine and recreational vehicles 301 — 80 381 67,640 68,021 — Total $ 14,383 $ 2,231 $ 1,666 $ 18,280 $ 1,699,449 $ 1,717,729 $ 440 1 For the purposes of the table above, “Current” includes loans that are 1-29 days past due. 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 Residential mortgage $ 1,649 $ 452 $ 20 $ 2,121 $ 300 $ 263,846 $ 266,267 $ — Real estate – construction: Construction - commercial real estate — — — — — 49,136 49,136 — Construction - consumer real estate — — — — — 10,539 10,539 — Commercial, financial and agricultural: Commercial real estate — — — — 1,114 591,187 592,301 — Land acquisition and development — — — — — 37,537 37,537 — Builder lines — — — — — 34,538 34,538 — Commercial business — 1 — 1 — 118,604 118,605 — Equity lines — 39 — 39 15 43,246 43,300 — Other consumer 9 — 191 200 26 8,712 8,938 191 Consumer finance: Automobiles 10,557 1,570 842 12,969 — 398,143 411,112 — Marine and recreational vehicles 114 35 83 232 — 63,213 63,445 — Total $ 12,329 $ 2,097 $ 1,136 $ 15,562 $ 1,455 $ 1,618,701 $ 1,635,718 $ 191 1 |
Schedule of loans on nonaccrual status | September 30, December 31, (Dollars in thousands) 2023 2022 Commercial real estate $ 264 $ — Residential mortgage 141 156 Equity lines 60 108 Consumer finance - automobiles 831 842 Consumer finance - marine and recreational vehicles 80 83 Total $ 1,376 $ 1,189 |
Summary of amortized cost basis of loans that were both experiencing financial difficulty and modified | Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023 % of Total % of Total Class of Class of Amortized Financing Amortized Financing (Dollars in thousands) Cost Receivable Cost Receivable Term Extension Commercial real estate $ 969 0.2 % $ 969 0.2 % Residential mortgage 71 0.0 71 0.0 Total Term Extension $ 1,040 $ 1,040 Combination Term Extension and Interest Rate Reduction Commercial real estate — — 45 0.0 Total Combination Term Extension and Interest Rate Reduction $ — $ 45 Total $ 1,040 0.1 % $ 1,085 0.1 % Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023 Weighted- Weighted- Weighted- Weighted- Average Average Average Average Interest Rate Term Extension Interest Rate Term Extension (Dollars in thousands) Reduction (in years) Reduction (in years) Commercial real estate — % 2.0 0.75 % 2.1 Residential mortgage — 10.0 — 10.0 Total — % 2.5 0.75 % 2.6 |
Schedule of acquired loans | December 31, 2022 Acquired Loans - Acquired Loans - Purchased Purchased Acquired Loans - (Dollars in thousands) Credit Impaired Performing Total Outstanding principal balance $ 4,522 $ 38,157 $ 42,679 Carrying amount Real estate – residential mortgage $ 300 $ 8,587 $ 8,887 Real estate – construction — — — Commercial, financial and agricultural 1 1,114 23,023 24,137 Equity lines 15 5,047 5,062 Consumer 26 755 781 Total acquired loans $ 1,455 $ 37,412 $ 38,867 1 Includes acquired loans classified by the Corporation as commercial real estate lending and commercial business lending. |
Summary of change in the accretable yield of loans classified as purchased credit impaired (PCI) | Nine Months Ended (Dollars in thousands) September 30, 2022 Accretable yield, balance at beginning of period $ 3,111 Accretion (1,270) Reclassification of nonaccretable difference due to improvement in expected cash flows 1,603 Other changes, net 178 Accretable yield, balance at end of period $ 3,622 |
Schedule of impaired loans | 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 $ 797 $ 36 $ 761 $ 51 $ 806 $ 35 Equity lines 26 26 — — 28 2 Total $ 823 $ 62 $ 761 $ 51 $ 834 $ 37 |
Allowance for Credit Losses (Ta
Allowance for Credit Losses (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Allowance for Credit Losses | |
Schedule of changes in the allowance for credit and loan losses | Consumer (Dollars in thousands) Commercial Consumer Finance Total Allowance for credit losses: Balance at December 31, 2022 $ 11,219 $ 3,330 $ 25,969 $ 40,518 Impact of ASC 326 adoption on non-PCD loans (617) 98 406 (113) Impact of ASC 326 adoption on PCD loans 595 9 — 604 Provision charged to operations 839 362 4,250 5,451 Loans charged off (16) (240) (9,306) (9,562) Recoveries of loans previously charged off 144 136 3,070 3,350 Balance at September 30, 2023 $ 12,164 $ 3,695 $ 24,389 $ 40,248 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 (6) (62) (623) (60) 83 2,070 1,402 Loans charged off — — (11) — (193) (4,115) (4,319) Recoveries of loans previously charged off 16 — 13 2 93 3,516 3,640 Balance at September 30, 2022 $ 2,670 $ 794 $ 10,464 $ 535 $ 155 $ 26,262 $ 40,880 |
Schedule of breakdown of provision for credit losses | Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2023 2022 2023 2022 Provision for credit losses: Provision for loans $ 2,100 $ 1,200 $ 5,451 $ 1,402 Provision for unfunded commitments (50) — 349 — Total $ 2,050 $ 1,200 $ 5,800 $ 1,402 |
Schedule of loans by credit quality indicators | Revolving Revolving Term Loans Recorded Balance by Origination Year Loans Loans Recorded Converted (Dollars in thousands) 2023 2022 2021 2020 2019 Prior Balance to Term Total Commercial real estate: Loan Rating Pass $ 64,729 $ 124,701 $ 155,982 $ 107,937 $ 38,611 $ 146,396 $ — $ 119 $ 638,475 Special Mention — — 5,763 — — 965 — — 6,728 Substandard Nonaccrual — — — — — 264 — — 264 Total $ 64,729 $ 124,701 $ 161,745 $ 107,937 $ 38,611 $ 147,625 $ — $ 119 $ 645,467 Commercial business: Loan Rating Pass $ 17,317 $ 19,330 $ 18,728 $ 14,045 $ 15,376 $ 14,196 $ 19,496 $ 88 $ 118,576 Special Mention 65 — — — — — — — 65 Total $ 17,382 $ 19,330 $ 18,728 $ 14,045 $ 15,376 $ 14,196 $ 19,496 $ 88 $ 118,641 Construction - commercial real estate: Loan Rating Pass $ 23,177 $ 30,632 $ 1,150 $ 8,035 $ — $ — $ — $ — $ 62,994 Total $ 23,177 $ 30,632 $ 1,150 $ 8,035 $ — $ — $ — $ — $ 62,994 Land acquisition and development: Loan Rating Pass $ 1,049 $ 6,062 $ 10,969 $ 9,992 $ — $ 328 $ — $ — $ 28,400 Total $ 1,049 $ 6,062 $ 10,969 $ 9,992 $ — $ 328 $ — $ — $ 28,400 Builder lines: Loan Rating Pass $ 16,390 $ 9,202 $ 4,585 $ — $ 404 $ — $ 206 $ — $ 30,787 Total $ 16,390 $ 9,202 $ 4,585 $ — $ 404 $ — $ 206 $ — $ 30,787 Construction - consumer real estate: Loan Rating Pass $ 5,543 $ 5,735 $ 768 $ — $ — $ — $ — $ — $ 12,046 Total $ 5,543 $ 5,735 $ 768 $ — $ — $ — $ — $ — $ 12,046 Residential mortgage: Loan Rating Pass $ 48,024 $ 93,630 $ 45,721 $ 42,276 $ 11,828 $ 48,123 $ — $ — $ 289,602 Special Mention — — 4 — — 96 — — 100 Substandard — — — 104 — 378 — — 482 Substandard Nonaccrual — — — — — 141 — — 141 Total $ 48,024 $ 93,630 $ 45,725 $ 42,380 $ 11,828 $ 48,738 $ — $ — $ 290,325 Equity lines: Loan Rating Pass $ — $ — $ 35 $ 70 $ — $ 878 $ 46,680 $ 299 $ 47,962 Substandard — — — — 5 — — — 5 Substandard Nonaccrual — — — — — 9 — 51 60 Total $ — $ — $ 35 $ 70 $ 5 $ 887 $ 46,680 $ 350 $ 48,027 Other consumer: Loan Rating Pass $ 4,856 $ 3,061 $ 717 $ 329 $ 227 $ 627 $ 50 $ — $ 9,867 Total $ 4,856 $ 3,061 $ 717 $ 329 $ 227 $ 627 $ 50 $ — $ 9,867 Total: Loan Rating Pass $ 181,085 $ 292,353 $ 238,655 $ 182,684 $ 66,446 $ 210,548 $ 66,432 $ 506 $ 1,238,709 Special Mention 65 — 5,767 — — 1,061 — — 6,893 Substandard — — — 104 5 378 — — 487 Substandard Nonaccrual — — — — — 414 — 51 465 Total $ 181,150 $ 292,353 $ 244,422 $ 182,788 $ 66,451 $ 212,401 $ 66,432 $ 557 $ 1,246,554 Revolving Term Loans Recorded Balance by Origination Year Loans Revolving Converted (Dollars in thousands) 2023 2022 2021 2020 2019 Prior Loans to Term Total Consumer finance - automobiles: Credit rating Very good $ 7,814 $ 13,655 $ 4,904 $ 1,170 $ 338 $ 34 $ — $ — $ 27,915 Good 26,830 46,654 17,211 3,913 1,391 456 — — 96,455 Fairly good 36,253 60,018 29,527 7,068 4,816 2,061 — — 139,743 Fair 24,257 40,299 24,503 7,973 5,854 2,676 — — 105,562 Marginal 5,538 9,690 8,647 3,733 3,410 2,461 — — 33,479 Total $ 100,692 $ 170,316 $ 84,792 $ 23,857 $ 15,809 $ 7,688 $ — $ — $ 403,154 Consumer finance - marine and recreational vehicles: Credit rating Very good $ 6,475 $ 15,774 $ 10,291 $ 10,386 $ 2,654 $ 2,556 $ — $ — $ 48,136 Good 6,942 8,280 1,712 1,461 425 466 — — 19,286 Fairly good 267 225 38 31 — 38 — — 599 Total $ 13,684 $ 24,279 $ 12,041 $ 11,878 $ 3,079 $ 3,060 $ — $ — $ 68,021 Total: Credit rating Very good $ 14,289 $ 29,429 $ 15,195 $ 11,556 $ 2,992 $ 2,590 $ — $ — $ 76,051 Good 33,772 54,934 18,923 5,374 1,816 922 — — 115,741 Fairly good 36,520 60,243 29,565 7,099 4,816 2,099 — — 140,342 Fair 24,257 40,299 24,503 7,973 5,854 2,676 — — 105,562 Marginal 5,538 9,690 8,647 3,733 3,410 2,461 — — 33,479 Total $ 114,376 $ 194,595 $ 96,833 $ 35,735 $ 18,888 $ 10,748 $ — $ — $ 471,175 Revolving Current Period Gross Charge-offs by Origination Year Loans Revolving Converted (Dollars in thousands) 2023 2022 2021 2020 2019 Prior Loans to Term Total Commercial business $ — $ 16 $ — $ — $ — $ — $ — $ — $ 16 Equity lines — — — — — 8 — — 8 Other consumer 1 199 25 — 3 2 3 — — 232 Consumer finance - automobiles 490 4,396 2,628 583 477 567 — — 9,141 Consumer finance - marine and recreational vehicles — 82 — 40 6 37 — — 165 Total $ 689 $ 4,519 $ 2,628 $ 626 $ 485 $ 615 $ — $ — $ 9,562 1 Gross charge-offs of other consumer loans for the nine months ended September 30, 2023 included $199,000 of demand deposit overdrafts that originated in 2023. Special Substandard (Dollars in thousands) Pass Mention Substandard Nonaccrual Total 1 Residential mortgage $ 264,891 $ 518 $ 702 $ 156 $ 266,267 Real estate – construction: Construction - commercial real estate 49,136 — — — 49,136 Construction - consumer real estate 10,539 — — — 10,539 Commercial, financial and agricultural: Commercial real estate 585,707 738 5,856 — 592,301 Land acquisition and development 37,537 — — — 37,537 Builder lines 34,538 — — — 34,538 Commercial business 118,605 — — — 118,605 Equity lines 43,147 40 5 108 43,300 Other consumer 8,747 191 — — 8,938 $ 1,152,847 $ 1,487 $ 6,563 $ 264 $ 1,161,161 1 At December 31, 2022, the Corporation did no t have any loans classified as Doubtful or Loss. Non- (Dollars in thousands) Performing Performing Total Consumer finance: Automobiles $ 410,270 $ 842 $ 411,112 Marine and recreational vehicles 63,362 83 63,445 $ 473,632 $ 925 $ 474,557 |
Schedule of balance of the allowance for loan losses and the allowance by impairment methodology | The following table presents, as of December 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 $ 51 $ — $ — $ — $ — $ — $ 51 Collectively evaluated for impairment 2,571 788 10,431 497 211 25,969 40,467 Acquired loans - PCI — — — — — — — Total allowance $ 2,622 $ 788 $ 10,431 $ 497 $ 211 $ 25,969 $ 40,518 Loans: Individually evaluated for impairment $ 797 $ — $ — $ 26 $ — $ — $ 823 Collectively evaluated for impairment 265,170 59,675 781,867 43,259 8,912 474,557 1,633,440 Acquired loans - PCI 300 — 1,114 15 26 — 1,455 Total loans $ 266,267 $ 59,675 $ 782,981 $ 43,300 $ 8,938 $ 474,557 $ 1,635,718 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Other Intangible Assets | |
Schedule of gross carrying amounts and accumulated amortization of other intangible assets | September 30, December 31, 2023 2022 Gross Gross Carrying Accumulated Carrying Accumulated (Dollars in thousands) Amount Amortization Amount Amortization Amortizable intangible assets: Core deposit intangibles $ 1,711 $ (557) $ 1,711 $ (464) Other amortizable intangibles 1,405 (1,084) 1,405 (973) Total $ 3,116 $ (1,641) $ 3,116 $ (1,437) |
Equity, Other Comprehensive I_2
Equity, Other Comprehensive Income (Loss) and Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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 (loss) income at June 30, 2023 $ (33,635) $ (3,195) $ 1,424 $ (35,406) Other comprehensive (loss) income arising during the period (7,369) — 179 (7,190) Related income tax effects 1,548 — (45) 1,503 (5,821) — 134 (5,687) Reclassifications into net income — 25 (1) 24 Related income tax effects — (5) — (5) — 20 (1) 19 Other comprehensive (loss) income, net of tax (5,821) 20 133 (5,668) Accumulated other comprehensive (loss) income at September 30, 2023 $ (39,456) $ (3,175) $ 1,557 $ (41,074) Securities Defined Cash Available Benefit Flow (Dollars in thousands) For Sale Plan Hedges Total Accumulated other comprehensive (loss) income at June 30, 2022 $ (24,333) $ (2,067) $ 875 $ (25,525) Other comprehensive (loss) income arising during the period (19,547) — 882 (18,665) Related income tax effects 4,104 — (228) 3,876 (15,443) — 654 (14,789) Reclassifications into net income — (7) (1) (8) Related income tax effects — 2 — 2 — (5) (1) (6) Other comprehensive (loss) income, net of tax (15,443) (5) 653 (14,795) Accumulated other comprehensive (loss) income at September 30, 2022 $ (39,776) $ (2,072) $ 1,528 $ (40,320) Securities Defined Cash Available Benefit Flow (Dollars in thousands) For Sale Plan Hedges Total Accumulated other comprehensive (loss) income at December 31, 2022 $ (35,184) $ (3,236) $ 1,462 $ (36,958) Other comprehensive (loss) income arising during the period (5,413) — 131 (5,282) Related income tax effects 1,137 — (32) 1,105 (4,276) — 99 (4,177) Reclassifications into net income 5 77 (5) 77 Related income tax effects (1) (16) 1 (16) 4 61 (4) 61 Other comprehensive (loss) income, net of tax (4,272) 61 95 (4,116) Accumulated other comprehensive (loss) income at September 30, 2023 $ (39,456) $ (3,175) $ 1,557 $ (41,074) 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) Other comprehensive (loss) income arising during the period (50,902) — 2,695 (48,207) Related income tax effects 10,689 — (694) 9,995 (40,213) — 2,001 (38,212) Reclassifications into net income — (22) (5) (27) Related income tax effects — 5 1 6 — (17) (4) (21) Other comprehensive (loss) income, net of tax (40,213) (17) 1,997 (38,233) Accumulated other comprehensive (loss) income at September 30, 2022 $ (39,776) $ (2,072) $ 1,528 $ (40,320) |
Schedule of reclassifications from accumulated other comprehensive loss | Three Months Ended September 30, Nine Months Ended September 30, Line Item In the Consolidated (Dollars in thousands) 2023 2022 2023 2022 Statements of Income Securities available for sale: Reclassification of net realized losses into net income $ — $ — $ (5) $ — Net losses on sales, maturities and calls of available for sale securities Related income tax effects — — 1 — Income tax expense — — (4) — Net of tax Defined benefit plan: 1 Reclassification of recognized net actuarial losses into net income (42) (10) (128) (29) Noninterest expenses - Other Amortization of prior service credit into net income 17 17 51 51 Noninterest expenses - Other Related income tax effects 5 (2) 16 (5) Income tax expense (20) 5 (61) 17 Net of tax Cash flow hedges: Amortization of hedging gains into net income 1 1 5 5 Interest expense - Trust preferred capital notes Related income tax effects — — (1) (1) Income tax expense 1 1 4 4 Net of tax Total reclassifications into net income $ (19) $ 6 $ (61) $ 21 1 See “Note 8: Employee Benefit Plans,” for additional information. |
Schedule of components earnings per share calculations | Three Months Ended September 30, (Dollars in thousands) 2023 2022 Net income attributable to C&F Financial Corporation $ 5,789 $ 6,480 Weighted average shares outstanding — 3,391,624 3,511,326 Nine Months Ended September 30, (Dollars in thousands) 2023 2022 Net income attributable to C&F Financial Corporation $ 18,536 $ 18,851 Weighted average shares outstanding — 3,426,845 3,531,064 |
Share-Based Plans (Tables)
Share-Based Plans (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Plans | |
Summary of activity for restricted stock awards | 2023 Weighted- Average Grant Date Shares Fair Value Unvested, December 31, 2022 145,677 $ 48.88 Granted 18,540 57.32 Vested (30,043) 51.53 Forfeited (3,545) 49.37 Unvested, September 30, 2023 130,629 55.36 2022 Weighted- Average Grant Date Shares Fair Value Unvested, December 31, 2021 140,577 $ 48.57 Granted 16,430 50.56 Vested (15,920) 50.95 Forfeited (2,930) 48.23 Unvested, September 30, 2022 138,157 48.54 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Employee Benefit Plans | |
Schedule of net periodic benefit costs | Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2023 2022 2023 2022 Components of net periodic benefit cost: Service cost, included in salaries and employee benefits $ 344 $ 459 $ 1,032 $ 1,378 Other components of net periodic benefit cost: Interest cost 182 123 546 369 Expected return on plan assets (321) (415) (963) (1,245) Amortization of prior service credit (17) (17) (51) (51) Recognized net actuarial losses 42 10 128 29 Other components of net periodic benefit cost, included in other noninterest expense (114) (299) (340) (898) Net periodic benefit cost $ 230 $ 160 $ 692 $ 480 |
Fair Value of Assets and Liab_2
Fair Value of Assets and Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value of Assets and Liabilities | |
Schedule of balances of financial assets and liabilities measured at fair value on a recurring basis | September 30, 2023 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 $ — $ 51,394 $ — $ 51,394 U.S. government agencies and corporations — 94,050 — 94,050 Mortgage-backed securities — 160,315 — 160,315 Obligations of states and political subdivisions — 134,165 — 134,165 Corporate and other debt securities — 20,729 — 20,729 Total securities available for sale — 460,653 — 460,653 Loans held for sale — 25,469 — 25,469 Other investments — 3,629 — 3,629 Derivatives IRLC — 563 — 563 Interest rate swaps on loans — 7,132 — 7,132 Cash flow hedges — 2,073 — 2,073 Total assets $ — $ 499,519 $ — $ 499,519 Liabilities: Derivatives Interest rate swaps on loans $ — $ 7,132 $ — $ 7,132 Total liabilities $ — $ 7,132 $ — $ 7,132 December 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 $ — $ 58,833 $ — $ 58,833 U.S. government agencies and corporations — 130,274 — 130,274 Mortgage-backed securities — 179,918 — 179,918 Obligations of states and political subdivisions — 120,827 — 120,827 Corporate and other debt securities — 22,739 — 22,739 Total securities available for sale — 512,591 — 512,591 Loans held for sale — 14,259 — 14,259 Other investments — 3,649 — 3,649 Derivatives IRLC — 391 — 391 Interest rate swaps on loans — 6,328 — 6,328 Cash flow hedges — 1,941 — 1,941 Total assets $ — $ 539,159 $ — $ 539,159 Liabilities: Derivatives Interest rate swaps on loans $ — $ 6,328 $ — $ 6,328 Total liabilities $ — $ 6,328 $ — $ 6,328 |
Schedule of carrying amounts and estimated fair values of financial instruments | Carrying Fair Value Measurements at September 30, 2023 Classified as Total Fair (Dollars in thousands) Value Level 1 Level 2 Level 3 Value Financial assets: Cash and short-term investments $ 73,002 $ 70,512 $ 2,490 $ — $ 73,002 Securities available for sale 460,653 — 460,653 — 460,653 Loans, net 1,677,481 — — 1,618,671 1,618,671 Loans held for sale 25,469 — 25,469 — 25,469 Other investments 3,629 — 3,629 — 3,629 Derivatives IRLC 563 — 563 — 563 Interest rate swaps on loans 7,132 — 7,132 — 7,132 Cash flow hedges 2,073 — 2,073 — 2,073 Bank-owned life insurance 21,248 — 21,248 — 21,248 Accrued interest receivable 10,039 10,039 — — 10,039 Financial liabilities: Demand and savings deposits 1,431,140 1,431,140 — — 1,431,140 Time deposits 597,289 — 591,113 — 591,113 Borrowings 141,042 — 125,792 — 125,792 Derivatives Interest rate swaps on loans 7,132 — 7,132 — 7,132 Accrued interest payable 3,188 3,188 — — 3,188 Carrying Fair Value Measurements at December 31, 2022 Classified as Total Fair (Dollars in thousands) Value Level 1 Level 2 Level 3 Value Financial assets: Cash and short-term investments $ 28,898 $ 26,661 $ 2,189 $ — $ 28,850 Securities available for sale 512,591 — 512,591 — 512,591 Loans, net 1,595,200 — — 1,538,062 1,538,062 Loans held for sale 14,259 — 14,259 — 14,259 Other investments 3,649 — 3,649 — 3,649 Derivatives IRLC 391 — 391 — 391 Interest rate swaps on loans 6,328 — 6,328 — 6,328 Cash flow hedges 1,941 — 1,941 — 1,941 Bank-owned life insurance 20,909 — 20,909 — 20,909 Accrued interest receivable 8,982 8,982 — — 8,982 Financial liabilities: Demand and savings deposits 1,622,566 1,622,566 — — 1,622,566 Time deposits 381,294 — 374,267 — 374,267 Borrowings 85,943 — 71,906 — 71,906 Derivatives Interest rate swaps on loans 6,328 — 6,328 — 6,328 Accrued interest payable 950 950 — — 950 |
Business Segments (Tables)
Business Segments (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Business Segments | |
Schedule of segment reporting information, by segment | Three Months Ended September 30, 2023 Community Mortgage Consumer (Dollars in thousands) Banking Banking Finance Other Eliminations Consolidated Interest income $ 25,066 $ 517 $ 12,020 $ — $ (5,917) $ 31,686 Interest expense 6,675 232 5,748 548 (5,979) 7,224 Net interest income 18,391 285 6,272 (548) 62 24,462 Gain on sales of loans — 1,198 — — 22 1,220 Other noninterest income 4,221 1,144 (19) (496) (50) 4,800 Net revenue 22,612 2,627 6,253 (1,044) 34 30,482 Provision for credit losses 500 — 1,550 — — 2,050 Noninterest expense 15,129 2,631 3,761 (172) (17) 21,332 Income (loss) before taxes 6,983 (4) 942 (872) 51 7,100 Income tax expense (benefit) 1,298 1 260 (246) 10 1,323 Net income (loss) $ 5,685 $ (5) $ 682 $ (626) $ 41 $ 5,777 Other data: Capital expenditures $ 251 $ 12 $ 146 $ — $ — $ 409 Depreciation and amortization $ 838 $ 18 $ 100 $ — $ — $ 956 Three Months Ended September 30, 2022 Community Mortgage Consumer (Dollars in thousands) Banking Banking Finance Other Eliminations Consolidated Interest income $ 18,766 $ 556 $ 11,175 $ — $ (4,171) $ 26,326 Interest expense 1,353 247 3,941 593 (4,188) 1,946 Net interest income 17,413 309 7,234 (593) 17 24,380 Gain on sales of loans — 1,904 — — (34) 1,870 Other noninterest income 3,903 1,197 49 (826) (64) 4,259 Net revenue 21,316 3,410 7,283 (1,419) (81) 30,509 Provision for loan losses — — 1,200 — — 1,200 Noninterest expense 14,621 3,398 3,639 (553) (16) 21,089 Income (loss) before taxes 6,695 12 2,444 (866) (65) 8,220 Income tax expense (benefit) 1,274 (12) 665 (238) (14) 1,675 Net income (loss) $ 5,421 $ 24 $ 1,779 $ (628) $ (51) $ 6,545 Other data: Capital expenditures $ 961 $ 3 $ — $ — $ — $ 964 Depreciation and amortization $ 923 $ 57 $ 102 $ — $ — $ 1,082 Nine Months Ended September 30, 2023 Community Mortgage Consumer (Dollars in thousands) Banking Banking Finance Other Eliminations Consolidated Interest income $ 72,531 $ 1,312 $ 35,313 $ — $ (17,427) $ 91,729 Interest expense 16,268 513 17,060 1,696 (17,573) 17,964 Net interest income 56,263 799 18,253 (1,696) 146 73,765 Gain on sales of loans — 4,983 — — (53) 4,930 Other noninterest income 12,173 3,413 25 840 (155) 16,296 Net revenue 68,436 9,195 18,278 (856) (62) 94,991 Provision for loan losses 1,550 — 4,250 — — 5,800 Noninterest expense 45,063 8,459 10,909 1,839 (46) 66,224 Income (loss) before taxes 21,823 736 3,119 (2,695) (16) 22,967 Income tax expense (benefit) 4,081 168 858 (790) (8) 4,309 Net income (loss) $ 17,742 $ 568 $ 2,261 $ (1,905) $ (8) $ 18,658 Other data: Capital expenditures $ 861 $ 12 $ 146 $ — $ — $ 1,019 Depreciation and amortization $ 2,558 $ 61 $ 300 $ — $ — $ 2,919 Nine Months Ended September 30, 2022 Community Mortgage Consumer (Dollars in thousands) Banking Banking Finance Other Eliminations Consolidated Interest income $ 50,612 $ 1,674 $ 30,975 $ — $ (10,312) $ 72,949 Interest expense 3,700 561 9,800 1,762 (10,361) 5,462 Net interest income 46,912 1,113 21,175 (1,762) 49 67,487 Gain on sales of loans — 7,251 — — (488) 6,763 Other noninterest income 11,962 3,918 164 (4,174) (112) 11,758 Net revenue 58,874 12,282 21,339 (5,936) (551) 86,008 Provision for loan losses (700) 32 2,070 — — 1,402 Noninterest expense 42,605 10,045 10,978 (3,186) (43) 60,399 Income (loss) before taxes 16,969 2,205 8,291 (2,750) (508) 24,207 Income tax expense (benefit) 3,215 533 2,255 (752) (107) 5,144 Net income (loss) $ 13,754 $ 1,672 $ 6,036 $ (1,998) $ (401) $ 19,063 Other data: Capital expenditures $ 2,232 $ 65 $ 17 $ — $ — $ 2,314 Depreciation and amortization $ 2,817 $ 180 $ 308 $ — $ — $ 3,305 Community Mortgage Consumer (Dollars in thousands) Banking Banking Finance Other Eliminations Consolidated Total assets at September 30, 2023 $ 2,299,620 $ 35,995 $ 478,346 $ 35,984 $ (428,240) $ 2,421,705 Total assets at December 31, 2022 $ 2,206,299 $ 24,500 $ 479,864 $ 43,241 $ (421,587) $ 2,332,317 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Financial Instruments | |
Schedule of key elements of derivative instruments other than forward sales of mortgage loans | September 30, 2023 Notional (Dollars in thousands) Amount Assets Liabilities Cash flow hedges: Interest rate swap contracts $ 25,000 $ 2,073 $ — Not designated as hedges: Customer-related interest rate swap contracts: Matched interest rate swaps with borrower 109,976 — 7,132 Matched interest rate swaps with counterparty 109,976 7,132 — Mortgage banking contracts: IRLCs 40,909 563 — December 31, 2022 Notional (Dollars in thousands) Amount Assets Liabilities Cash flow hedges: Interest rate swap contracts $ 25,000 $ 1,941 $ — Not designated as hedges: Customer-related interest rate swap contracts: Matched interest rate swaps with borrower 85,856 — 6,328 Matched interest rate swaps with counterparty 85,856 6,328 — Mortgage banking contracts: IRLCs 42,284 391 — |
Other Noninterest Expenses (Tab
Other Noninterest Expenses (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Other Noninterest Expenses | |
Schedule of other noninterest expense | Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2023 2022 2023 2022 Data processing fees $ 2,567 $ 2,675 $ 7,863 $ 7,921 Professional fees 707 684 2,096 2,179 Insurance expense 414 293 1,203 767 Marketing and advertising expenses 361 441 1,172 1,415 Telecommunication expenses 344 350 970 1,047 Mortgage banking loan processing expenses 272 404 854 1,405 Provision for indemnifications (200) 11 (435) (858) All other noninterest expenses 2,002 1,847 5,685 5,316 Total other noninterest expenses $ 6,467 $ 6,705 $ 19,408 $ 19,192 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Nature of Operations and Derivative Financial Instruments (Details) | Sep. 30, 2023 subsidiary |
Nature of Operations | |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other assets. |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Other liabilities |
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% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Adoption of New Accounting Standards | ||
Retained earnings | $ (230,168,000) | $ (217,214,000) |
Loans, gross | $ 1,717,729,000 | 1,635,718,000 |
Impact of ASC 326 | Accounting Standards Update 2016-13 | ||
Adoption of New Accounting Standards | ||
Retained earnings | 1,100,000 | |
Loans, gross | $ 604,000 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Impact of adoption (Details) - USD ($) | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Assets: | ||||||
Loans, gross | $ 1,717,729,000 | $ 1,635,718,000 | ||||
Allowance for credit losses | 40,248,000 | 40,518,000 | $ 40,880,000 | $ 40,157,000 | ||
Loans, net | 1,677,481,000 | 1,595,200,000 | ||||
Net deferred tax asset | 23,434,000 | 22,014,000 | ||||
Liabilities: | ||||||
Total equity: | 200,380,000 | $ 202,528,000 | 196,233,000 | 185,440,000 | $ 196,283,000 | 211,024,000 |
Commercial | ||||||
Assets: | ||||||
Allowance for credit losses | 12,164,000 | 11,219,000 | ||||
Consumer | ||||||
Assets: | ||||||
Allowance for credit losses | 3,695,000 | 3,330,000 | ||||
Consumer finance | ||||||
Assets: | ||||||
Loans, gross | 471,175,000 | |||||
Allowance for credit losses | $ 24,389,000 | 25,969,000 | $ 26,262,000 | $ 24,791,000 | ||
Impact of ASC 326 | ||||||
Liabilities: | ||||||
Total equity: | (1,072,000) | |||||
Impact of ASC 326 | Accounting Standards Update 2016-13 | ||||||
Assets: | ||||||
Loans, gross | 604,000 | |||||
Allowance for credit losses | 491,000 | |||||
Loans, net | 113,000 | |||||
Net deferred tax asset | 316,000 | |||||
Liabilities: | ||||||
Reserve for credit losses on unfunded commitments | 1,501,000 | |||||
Total equity: | (1,072,000) | |||||
Impact of ASC 326 | Accounting Standards Update 2016-13 | Commercial | ||||||
Assets: | ||||||
Allowance for credit losses | (22,000) | |||||
Impact of ASC 326 | Accounting Standards Update 2016-13 | Consumer | ||||||
Assets: | ||||||
Allowance for credit losses | 107,000 | |||||
Impact of ASC 326 | Accounting Standards Update 2016-13 | Consumer finance | ||||||
Assets: | ||||||
Allowance for credit losses | 406,000 | |||||
As Reported under ASC 326 | Accounting Standards Update 2016-13 | ||||||
Assets: | ||||||
Loans, gross | 1,636,322,000 | |||||
Allowance for credit losses | 41,009,000 | |||||
Loans, net | 1,595,313,000 | |||||
Net deferred tax asset | 22,330,000 | |||||
Liabilities: | ||||||
Reserve for credit losses on unfunded commitments | 1,501,000 | |||||
Total equity: | 195,161,000 | |||||
As Reported under ASC 326 | Accounting Standards Update 2016-13 | Commercial | ||||||
Assets: | ||||||
Allowance for credit losses | 11,197,000 | |||||
As Reported under ASC 326 | Accounting Standards Update 2016-13 | Consumer | ||||||
Assets: | ||||||
Allowance for credit losses | 3,437,000 | |||||
As Reported under ASC 326 | Accounting Standards Update 2016-13 | Consumer finance | ||||||
Assets: | ||||||
Allowance for credit losses | $ 26,375,000 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Loans Held for Investment and Allowance for Credit Losses on Loans (Details) | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Adoption of New Accounting Standards | |
Allowance for credit losses for non-PCD loans | $ 0 |
Allowance for credit loss written-off | $ 0 |
Securities - Available for sale
Securities - Available for sale Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 510,597 | $ 557,128 |
Gross Unrealized Gains | 99 | 365 |
Gross Unrealized Losses | (50,043) | (44,902) |
Fair Value | 460,653 | 512,591 |
U.S. Treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 52,785 | 60,886 |
Gross Unrealized Losses | (1,391) | (2,053) |
Fair Value | 51,394 | 58,833 |
U.S. government agencies and corporations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 106,455 | 143,241 |
Gross Unrealized Losses | (12,405) | (12,967) |
Fair Value | 94,050 | 130,274 |
Mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 183,552 | 200,393 |
Gross Unrealized Gains | 2 | 65 |
Gross Unrealized Losses | (23,239) | (20,540) |
Fair Value | 160,315 | 179,918 |
Obligations of states and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 142,593 | 127,317 |
Gross Unrealized Gains | 97 | 300 |
Gross Unrealized Losses | (8,525) | (6,790) |
Fair Value | 134,165 | 120,827 |
Corporate and other debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 25,212 | 25,291 |
Gross Unrealized Losses | (4,483) | (2,552) |
Fair Value | $ 20,729 | $ 22,739 |
Securities - Maturities and Rea
Securities - Maturities and Realized Gains and Losses (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) security | Sep. 30, 2022 USD ($) security | Dec. 31, 2022 USD ($) | |
Securities | |||||
Exclude accrued interest receivable from the amortized cost basis of securities | $ 2,820 | $ 2,820 | |||
Amortized Cost | |||||
Due in one year or less | 122,708 | 122,708 | |||
Due after one year through five years | 180,708 | 180,708 | |||
Due after five years through ten years | 123,319 | 123,319 | |||
Due after ten years | 83,862 | 83,862 | |||
Amortized Cost | 510,597 | 510,597 | $ 557,128 | ||
Fair Value | |||||
Due in one year or less | 117,683 | 117,683 | |||
Due after one year through five years | 161,000 | 161,000 | |||
Due after five years through ten years | 105,599 | 105,599 | |||
Due after ten years | 76,371 | 76,371 | |||
Fair Value | 460,653 | $ 460,653 | $ 512,591 | ||
Realized Gains and Losses | |||||
Number of securities sales | security | 0 | 0 | |||
Gross realized losses | $ (5) | ||||
Net realized losses | (5) | ||||
Proceeds from sales, maturities, calls and paydowns of securities | $ 30,719 | $ 12,700 | $ 75,560 | $ 43,681 |
Securities - Pledged as Collate
Securities - Pledged as Collateral (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Available for sale securities | ||
Amortized Cost | $ 510,597 | $ 557,128 |
Fair Value | 460,653 | 512,591 |
Securities Pledged as Collateral | ||
Available for sale securities | ||
Amortized Cost | 215,220 | 237,150 |
Fair Value | $ 190,510 | $ 213,580 |
Securities - Unrealized Loss Po
Securities - Unrealized Loss Positions (Details) | 9 Months Ended | |
Sep. 30, 2023 USD ($) security | Dec. 31, 2022 USD ($) | |
Fair value | ||
Less Than 12 Months, Fair Value | $ 58,039,000 | $ 271,692,000 |
12 Months or More, Fair Value | 383,529,000 | 209,967,000 |
Total Fair Value | 441,568,000 | 481,659,000 |
Unrealized Loss | ||
Less Than 12 Months, Unrealized Loss | 2,843,000 | 12,523,000 |
12 Months or More, Unrealized Loss | 47,200,000 | 32,379,000 |
Total Unrealized Loss | $ 50,043,000 | 44,902,000 |
Other information | ||
Number of positions | security | 615 | |
Aggregate fair value | $ 441,568,000 | 481,659,000 |
Other than temporary impairment | 0 | |
U.S. Treasury securities | ||
Fair value | ||
Less Than 12 Months, Fair Value | 50,556,000 | |
12 Months or More, Fair Value | 51,394,000 | 8,277,000 |
Total Fair Value | 51,394,000 | 58,833,000 |
Unrealized Loss | ||
Less Than 12 Months, Unrealized Loss | 1,368,000 | |
12 Months or More, Unrealized Loss | 1,391,000 | 685,000 |
Total Unrealized Loss | 1,391,000 | 2,053,000 |
Other information | ||
Aggregate fair value | 51,394,000 | 58,833,000 |
U.S. government agencies and corporations | ||
Fair value | ||
Less Than 12 Months, Fair Value | 71,948,000 | |
12 Months or More, Fair Value | 94,050,000 | 58,326,000 |
Total Fair Value | 94,050,000 | 130,274,000 |
Unrealized Loss | ||
Less Than 12 Months, Unrealized Loss | 1,578,000 | |
12 Months or More, Unrealized Loss | 12,405,000 | 11,389,000 |
Total Unrealized Loss | 12,405,000 | 12,967,000 |
Other information | ||
Aggregate fair value | 94,050,000 | 130,274,000 |
Mortgage-backed securities | ||
Fair value | ||
Less Than 12 Months, Fair Value | 10,704,000 | 73,301,000 |
12 Months or More, Fair Value | 149,535,000 | 104,563,000 |
Total Fair Value | 160,239,000 | 177,864,000 |
Unrealized Loss | ||
Less Than 12 Months, Unrealized Loss | 697,000 | 5,441,000 |
12 Months or More, Unrealized Loss | 22,542,000 | 15,099,000 |
Total Unrealized Loss | 23,239,000 | 20,540,000 |
Other information | ||
Aggregate fair value | 160,239,000 | 177,864,000 |
Obligations of states and political subdivisions | ||
Fair value | ||
Less Than 12 Months, Fair Value | 44,075,000 | 60,838,000 |
12 Months or More, Fair Value | 71,081,000 | 32,120,000 |
Total Fair Value | 115,156,000 | 92,958,000 |
Unrealized Loss | ||
Less Than 12 Months, Unrealized Loss | 1,657,000 | 2,434,000 |
12 Months or More, Unrealized Loss | 6,868,000 | 4,356,000 |
Total Unrealized Loss | 8,525,000 | 6,790,000 |
Other information | ||
Aggregate fair value | 115,156,000 | 92,958,000 |
Corporate and other debt securities | ||
Fair value | ||
Less Than 12 Months, Fair Value | 3,260,000 | 15,049,000 |
12 Months or More, Fair Value | 17,469,000 | 6,681,000 |
Total Fair Value | 20,729,000 | 21,730,000 |
Unrealized Loss | ||
Less Than 12 Months, Unrealized Loss | 489,000 | 1,702,000 |
12 Months or More, Unrealized Loss | 3,994,000 | 850,000 |
Total Unrealized Loss | 4,483,000 | 2,552,000 |
Other information | ||
Aggregate fair value | $ 20,729,000 | $ 21,730,000 |
Securities - Restricted Stocks
Securities - Restricted Stocks and others (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Securities | ||
Investment in restricted stock | $ 4,800,000 | $ 1,120,000 |
Restricted stocks, other-than-temporary impairment | $ 0 |
Loans - Classes of Loans (Detai
Loans - Classes of Loans (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Exclude accrued interest receivable from the amortized cost basis of loans | $ 7,190,000 | |||
Subtotal | 1,717,729,000 | $ 1,635,718,000 | ||
Less allowance for credit losses | (40,248,000) | (40,518,000) | $ (40,880,000) | $ (40,157,000) |
Loans, net | 1,677,481,000 | 1,595,200,000 | ||
Commercial real estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Subtotal | 645,467,000 | 592,301,000 | ||
Commercial business | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Subtotal | 118,641,000 | 118,605,000 | ||
Construction - commercial real estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Subtotal | 62,994,000 | 49,136,000 | ||
Land acquisition and development | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Subtotal | 28,400,000 | 37,537,000 | ||
Builder lines | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Subtotal | 30,787,000 | 34,538,000 | ||
Construction - consumer real estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Subtotal | 12,046,000 | 10,539,000 | ||
Residential mortgage | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Subtotal | 290,325,000 | 266,267,000 | ||
Less allowance for credit losses | (2,622,000) | (2,670,000) | (2,660,000) | |
Equity lines | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Subtotal | 48,027,000 | 43,300,000 | ||
Less allowance for credit losses | (497,000) | (535,000) | (593,000) | |
Other consumer | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Subtotal | 9,867,000 | 8,938,000 | ||
Amount included related to demand deposit overdrafts | 207,000 | 284,000 | ||
Consumer finance | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Subtotal | 471,175,000 | |||
Less allowance for credit losses | (24,389,000) | (25,969,000) | $ (26,262,000) | $ (24,791,000) |
Consumer finance | Automobiles | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Subtotal | 403,154,000 | 411,112,000 | ||
Consumer finance | Marine and recreational vehicles | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Subtotal | $ 68,021,000 | $ 63,445,000 |
Loans - Loan Portfolio by Class
Loans - Loan Portfolio by Class (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, gross | $ 1,717,729,000 | $ 1,635,718,000 |
90+ Days Past Due and Accruing | 440,000 | |
Loans on nonaccrual status | 1,376,000 | 1,189,000 |
30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, gross | 14,383,000 | |
Loans on nonaccrual status | 9,000 | |
60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, gross | 2,231,000 | |
90+ Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, gross | 1,666,000 | |
Loans on nonaccrual status | 1,230,000 | |
Total Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, gross | 18,280,000 | |
Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, gross | 1,699,449,000 | |
Loans on nonaccrual status | 141,000 | |
Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, gross | 645,467,000 | 592,301,000 |
90+ Days Past Due and Accruing | 160,000 | |
Loans on nonaccrual status | 264,000 | |
Commercial real estate | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, gross | 614,000 | |
Commercial real estate | 90+ Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, gross | 424,000 | |
Commercial real estate | Total Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, gross | 1,038,000 | |
Commercial real estate | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, gross | 644,429,000 | |
Commercial business | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, gross | 118,641,000 | 118,605,000 |
Commercial business | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, gross | 52,000 | |
Commercial business | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, gross | 30,000 | |
Commercial business | Total Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, gross | 82,000 | |
Commercial business | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, gross | 118,559,000 | |
Construction - commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, gross | 62,994,000 | 49,136,000 |
Construction - commercial real estate | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, gross | 62,994,000 | |
Land acquisition and development | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, gross | 28,400,000 | 37,537,000 |
Land acquisition and development | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, gross | 28,400,000 | |
Builder lines | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, gross | 30,787,000 | 34,538,000 |
Builder lines | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, gross | 30,787,000 | |
Construction - consumer real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, gross | 12,046,000 | 10,539,000 |
Construction - consumer real estate | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, gross | 282,000 | |
Construction - consumer real estate | Total Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, gross | 282,000 | |
Construction - consumer real estate | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, gross | 11,764,000 | |
Residential mortgage | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, gross | 290,325,000 | 266,267,000 |
90+ Days Past Due and Accruing | 280,000 | |
Loans on nonaccrual status | 141,000 | 156,000 |
Residential mortgage | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, gross | 633,000 | |
Residential mortgage | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, gross | 71,000 | |
Residential mortgage | 90+ Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, gross | 280,000 | |
Residential mortgage | Total Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, gross | 984,000 | |
Residential mortgage | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, gross | 289,341,000 | |
Equity lines | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, gross | 48,027,000 | 43,300,000 |
Loans on nonaccrual status | 60,000 | 108,000 |
Equity lines | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, gross | 268,000 | |
Equity lines | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, gross | 9,000 | |
Equity lines | 90+ Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, gross | 51,000 | |
Equity lines | Total Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, gross | 328,000 | |
Equity lines | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, gross | 47,699,000 | |
Other consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, gross | 9,867,000 | 8,938,000 |
Other consumer | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, gross | 9,867,000 | |
Consumer finance | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, gross | 471,175,000 | |
Consumer finance | Automobiles | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, gross | 403,154,000 | 411,112,000 |
Loans on nonaccrual status | 831,000 | 842,000 |
Consumer finance | Automobiles | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, gross | 12,233,000 | |
Consumer finance | Automobiles | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, gross | 2,121,000 | |
Consumer finance | Automobiles | 90+ Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, gross | 831,000 | |
Consumer finance | Automobiles | Total Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, gross | 15,185,000 | |
Consumer finance | Automobiles | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, gross | 387,969,000 | |
Consumer finance | Marine and recreational vehicles | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, gross | 68,021,000 | 63,445,000 |
Loans on nonaccrual status | 80,000 | $ 83,000 |
Consumer finance | Marine and recreational vehicles | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, gross | 301,000 | |
Consumer finance | Marine and recreational vehicles | 90+ Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, gross | 80,000 | |
Consumer finance | Marine and recreational vehicles | Total Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, gross | 381,000 | |
Consumer finance | Marine and recreational vehicles | Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, gross | $ 67,640,000 |
Loans - Amortized cost basis of
Loans - Amortized cost basis of loans on nonaccrual status (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | |
Interest income on loans on nonaccrual status | $ 0 | ||
Reversal of interest income upon placing loans on nonaccrual status | $ 0 | 14,000 | |
Loans on nonaccrual status | 1,376,000 | 1,376,000 | $ 1,189,000 |
Commercial real estate | |||
Loans on nonaccrual status | 264,000 | 264,000 | |
Residential mortgage | |||
Loans on nonaccrual status | 141,000 | 141,000 | 156,000 |
Equity lines | |||
Loans on nonaccrual status | 60,000 | 60,000 | 108,000 |
Consumer finance | Automobiles | |||
Loans on nonaccrual status | 831,000 | 831,000 | 842,000 |
Consumer finance | Marine and recreational vehicles | |||
Loans on nonaccrual status | $ 80,000 | $ 80,000 | $ 83,000 |
Loans - Loan Modifications (Det
Loans - Loan Modifications (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Weighted average interest rate of modified financing receivables | 0.75% | 0.75% | |
Weighted average extension term of modified financing receivables | 2 years 6 months | 2 years 7 months 6 days | |
Payment defaults of modified loans were modified during the previous twelve months | 0 | 0 | |
Commercial real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Weighted average interest rate of modified financing receivables | 0.75% | 0.75% | |
Weighted average extension term of modified financing receivables | 2 years | 2 years 1 month 6 days | |
Residential mortgage | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Weighted average extension term of modified financing receivables | 10 years | 10 years |
Loans - Amortized cost basis _2
Loans - Amortized cost basis of loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2023 | Sep. 30, 2023 | |
Financing Receivable, Modifications [Line Items] | ||
Amortized Cost | $ 1,040 | $ 1,085 |
% of Total Class of Financing Receivable | 0.10% | 0.10% |
Term Extension | ||
Financing Receivable, Modifications [Line Items] | ||
Amortized Cost | $ 1,040 | $ 1,040 |
Interest Rate Reduction | ||
Financing Receivable, Modifications [Line Items] | ||
Amortized Cost | 45 | |
Commercial real estate | Term Extension | ||
Financing Receivable, Modifications [Line Items] | ||
Amortized Cost | $ 969 | $ 969 |
% of Total Class of Financing Receivable | 0.20% | 0.20% |
Commercial real estate | Interest Rate Reduction | ||
Financing Receivable, Modifications [Line Items] | ||
Amortized Cost | $ 45 | |
% of Total Class of Financing Receivable | 0% | |
Residential mortgage | Term Extension | ||
Financing Receivable, Modifications [Line Items] | ||
Amortized Cost | $ 71 | $ 71 |
% of Total Class of Financing Receivable | 0% | 0% |
Loans - Loans Acquired (Details
Loans - Loans Acquired (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Loans | |
Outstanding principal balance | $ 42,679 |
Carrying amount | |
Total acquired loans | 38,867 |
Residential mortgage | |
Carrying amount | |
Total acquired loans | 8,887 |
Commercial, Financial & Agricultural | |
Carrying amount | |
Total acquired loans | 24,137 |
Equity lines | |
Carrying amount | |
Total acquired loans | 5,062 |
Consumer | |
Carrying amount | |
Total acquired loans | 781 |
PCI Loans | |
Loans | |
Outstanding principal balance | 4,522 |
Carrying amount | |
Total acquired loans | 1,455 |
PCI Loans | Residential mortgage | |
Carrying amount | |
Total acquired loans | 300 |
PCI Loans | Commercial, Financial & Agricultural | |
Carrying amount | |
Total acquired loans | 1,114 |
PCI Loans | Equity lines | |
Carrying amount | |
Total acquired loans | 15 |
PCI Loans | Consumer | |
Carrying amount | |
Total acquired loans | 26 |
Purchased Performing | |
Loans | |
Outstanding principal balance | 38,157 |
Carrying amount | |
Total acquired loans | 37,412 |
Purchased Performing | Residential mortgage | |
Carrying amount | |
Total acquired loans | 8,587 |
Purchased Performing | Commercial, Financial & Agricultural | |
Carrying amount | |
Total acquired loans | 23,023 |
Purchased Performing | Equity lines | |
Carrying amount | |
Total acquired loans | 5,047 |
Purchased Performing | Consumer | |
Carrying amount | |
Total acquired loans | $ 755 |
Loans - Change in Accretable Yi
Loans - Change in Accretable Yield (Details) - PCI Loans $ in Thousands | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Change in the accretable yield | |
Accretable yield, balance at beginning of period | $ 3,111 |
Accretion | (1,270) |
Reclassification of nonaccretable difference due to improvement in expected cash flows | 1,603 |
Other changes, net | 178 |
Accretable yield, balance at end of period | $ 3,622 |
Loans - Past Due Status (Detail
Loans - Past Due Status (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Past due status of loans | |
Total loans | $ 1,635,718 |
90+ days past due and accruing | 191 |
Current, nonaccrual status | 244,000,000 |
Nonaccrual loans, 90+ days past due | 945 |
PCI | |
Past due status of loans | |
Total loans | 1,455 |
30-59 Days Past Due | |
Past due status of loans | |
Total loans | 12,329 |
60-89 Days Past Due | |
Past due status of loans | |
Total loans | 2,097 |
90+ Days Past Due | |
Past due status of loans | |
Total loans | 1,136 |
Total Past Due | |
Past due status of loans | |
Total loans | 15,562 |
Current | |
Past due status of loans | |
Total loans | 1,618,701 |
Residential mortgage | |
Past due status of loans | |
Total loans | 266,267 |
Residential mortgage | PCI | |
Past due status of loans | |
Total loans | 300 |
Residential mortgage | 30-59 Days Past Due | |
Past due status of loans | |
Total loans | 1,649 |
Residential mortgage | 60-89 Days Past Due | |
Past due status of loans | |
Total loans | 452 |
Residential mortgage | 90+ Days Past Due | |
Past due status of loans | |
Total loans | 20 |
Residential mortgage | Total Past Due | |
Past due status of loans | |
Total loans | 2,121 |
Residential mortgage | Current | |
Past due status of loans | |
Total loans | 263,846 |
Real Estate Construction | |
Past due status of loans | |
Total loans | 59,675 |
Construction - commercial real estate | |
Past due status of loans | |
Total loans | 49,136 |
Construction - commercial real estate | Current | |
Past due status of loans | |
Total loans | 49,136 |
Construction - consumer real estate | |
Past due status of loans | |
Total loans | 10,539 |
Construction - consumer real estate | Current | |
Past due status of loans | |
Total loans | 10,539 |
Commercial real estate | |
Past due status of loans | |
Total loans | 592,301 |
Commercial real estate | PCI | |
Past due status of loans | |
Total loans | 1,114 |
Commercial real estate | Current | |
Past due status of loans | |
Total loans | 591,187 |
Land acquisition and development | |
Past due status of loans | |
Total loans | 37,537 |
Land acquisition and development | Current | |
Past due status of loans | |
Total loans | 37,537 |
Builder lines | |
Past due status of loans | |
Total loans | 34,538 |
Builder lines | Current | |
Past due status of loans | |
Total loans | 34,538 |
Commercial business | |
Past due status of loans | |
Total loans | 118,605 |
Commercial business | 60-89 Days Past Due | |
Past due status of loans | |
Total loans | 1 |
Commercial business | Total Past Due | |
Past due status of loans | |
Total loans | 1 |
Commercial business | Current | |
Past due status of loans | |
Total loans | 118,604 |
Equity lines | |
Past due status of loans | |
Total loans | 43,300 |
Equity lines | PCI | |
Past due status of loans | |
Total loans | 15 |
Equity lines | 60-89 Days Past Due | |
Past due status of loans | |
Total loans | 39 |
Equity lines | Total Past Due | |
Past due status of loans | |
Total loans | 39 |
Equity lines | Current | |
Past due status of loans | |
Total loans | 43,246 |
Other consumer | |
Past due status of loans | |
Total loans | 8,938 |
90+ days past due and accruing | 191 |
Other consumer | PCI | |
Past due status of loans | |
Total loans | 26 |
Other consumer | 30-59 Days Past Due | |
Past due status of loans | |
Total loans | 9 |
Other consumer | 90+ Days Past Due | |
Past due status of loans | |
Total loans | 191 |
Other consumer | Total Past Due | |
Past due status of loans | |
Total loans | 200 |
Other consumer | Current | |
Past due status of loans | |
Total loans | 8,712 |
Consumer finance | |
Past due status of loans | |
Total loans | 474,557 |
Consumer finance | Automobiles | |
Past due status of loans | |
Total loans | 411,112 |
Consumer finance | Automobiles | 30-59 Days Past Due | |
Past due status of loans | |
Total loans | 10,557 |
Consumer finance | Automobiles | 60-89 Days Past Due | |
Past due status of loans | |
Total loans | 1,570 |
Consumer finance | Automobiles | 90+ Days Past Due | |
Past due status of loans | |
Total loans | 842 |
Consumer finance | Automobiles | Total Past Due | |
Past due status of loans | |
Total loans | 12,969 |
Consumer finance | Automobiles | Current | |
Past due status of loans | |
Total loans | 398,143 |
Consumer finance | Marine and recreational vehicles | |
Past due status of loans | |
Total loans | 63,445 |
Consumer finance | Marine and recreational vehicles | 30-59 Days Past Due | |
Past due status of loans | |
Total loans | 114 |
Consumer finance | Marine and recreational vehicles | 60-89 Days Past Due | |
Past due status of loans | |
Total loans | 35 |
Consumer finance | Marine and recreational vehicles | 90+ Days Past Due | |
Past due status of loans | |
Total loans | 83 |
Consumer finance | Marine and recreational vehicles | Total Past Due | |
Past due status of loans | |
Total loans | 232 |
Consumer finance | Marine and recreational vehicles | Current | |
Past due status of loans | |
Total loans | $ 63,213 |
Loans - Troubled Debt Restructu
Loans - Troubled Debt Restructurings (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) loan | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) loan | |
Loan modifications classified as troubled debt restructurings | ||||
Number of Loans | loan | 0 | 0 | ||
Post-Modification Recorded Investment (in Dollars) | $ 1,040,000 | $ 1,085,000 | ||
Recorded Investment, TDR payment defaults | $ 0 | $ 0 | ||
Interest rate concession | ||||
Loan modifications classified as troubled debt restructurings | ||||
Post-Modification Recorded Investment (in Dollars) | $ 45,000 |
Loans - Impaired Loans (Details
Loans - Impaired Loans (Details) | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Impaired loans | |
Impaired loans, troubled debt restructurings | $ 823,000 |
Impaired loans, Unpaid Principal Balance | 823,000 |
Impaired loans, Recorded Investment in Loans without Specific Reserve | 62,000 |
Impaired loans, Recorded Investment in Loans with Specific Reserve | 761,000 |
Impaired loans, Related Allowance | 51,000 |
Impaired loans, Average Balance | 834,000 |
Impaired loans, Interest Income Recognized | 37,000 |
Residential mortgage | |
Impaired loans | |
Impaired loans, Unpaid Principal Balance | 797,000 |
Impaired loans, Recorded Investment in Loans without Specific Reserve | 36,000 |
Impaired loans, Recorded Investment in Loans with Specific Reserve | 761,000 |
Impaired loans, Related Allowance | 51,000 |
Impaired loans, Average Balance | 806,000 |
Impaired loans, Interest Income Recognized | 35,000 |
Equity lines | |
Impaired loans | |
Impaired loans, Unpaid Principal Balance | 26,000 |
Impaired loans, Recorded Investment in Loans without Specific Reserve | 26,000 |
Impaired loans, Average Balance | 28,000 |
Impaired loans, Interest Income Recognized | $ 2,000 |
Allowance for Credit Losses - L
Allowance for Credit Losses - Loan Portfolio (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Allowance for credit losses activity by loan portfolio | ||||
Beginning balance | $ 40,518 | $ 40,157 | ||
Provision charged to operations | $ 2,100 | $ 1,200 | 5,451 | 1,402 |
Loans charged off | (9,562) | |||
Recoveries of loans previously charged off | 3,350 | |||
Ending balance | 40,248 | 40,880 | 40,248 | 40,880 |
Impact of ASC 326 | Accounting Standards Update 2016-13 | ||||
Allowance for credit losses activity by loan portfolio | ||||
Beginning balance | 491 | |||
Impact of ASC 326 | Accounting Standards Update 2016-13 | Non-PCD loans | ||||
Allowance for credit losses activity by loan portfolio | ||||
Beginning balance | (113) | |||
Impact of ASC 326 | Accounting Standards Update 2016-13 | PCD loans | ||||
Allowance for credit losses activity by loan portfolio | ||||
Beginning balance | 604 | |||
Commercial | ||||
Allowance for credit losses activity by loan portfolio | ||||
Beginning balance | 11,219 | |||
Provision charged to operations | 839 | |||
Loans charged off | (16) | |||
Recoveries of loans previously charged off | 144 | |||
Ending balance | 12,164 | 12,164 | ||
Commercial | Impact of ASC 326 | Accounting Standards Update 2016-13 | ||||
Allowance for credit losses activity by loan portfolio | ||||
Beginning balance | (22) | |||
Commercial | Impact of ASC 326 | Accounting Standards Update 2016-13 | Non-PCD loans | ||||
Allowance for credit losses activity by loan portfolio | ||||
Beginning balance | (617) | |||
Commercial | Impact of ASC 326 | Accounting Standards Update 2016-13 | PCD loans | ||||
Allowance for credit losses activity by loan portfolio | ||||
Beginning balance | 595 | |||
Consumer | ||||
Allowance for credit losses activity by loan portfolio | ||||
Beginning balance | 3,330 | |||
Provision charged to operations | 362 | |||
Loans charged off | (240) | |||
Recoveries of loans previously charged off | 136 | |||
Ending balance | 3,695 | 3,695 | ||
Consumer | Impact of ASC 326 | Accounting Standards Update 2016-13 | ||||
Allowance for credit losses activity by loan portfolio | ||||
Beginning balance | 107 | |||
Consumer | Impact of ASC 326 | Accounting Standards Update 2016-13 | Non-PCD loans | ||||
Allowance for credit losses activity by loan portfolio | ||||
Beginning balance | 98 | |||
Consumer | Impact of ASC 326 | Accounting Standards Update 2016-13 | PCD loans | ||||
Allowance for credit losses activity by loan portfolio | ||||
Beginning balance | 9 | |||
Consumer finance | ||||
Allowance for credit losses activity by loan portfolio | ||||
Beginning balance | 25,969 | 24,791 | ||
Provision charged to operations | 4,250 | |||
Loans charged off | (9,306) | |||
Recoveries of loans previously charged off | 3,070 | |||
Ending balance | $ 24,389 | $ 26,262 | 24,389 | $ 26,262 |
Consumer finance | Impact of ASC 326 | Accounting Standards Update 2016-13 | ||||
Allowance for credit losses activity by loan portfolio | ||||
Beginning balance | 406 | |||
Consumer finance | Impact of ASC 326 | Accounting Standards Update 2016-13 | Non-PCD loans | ||||
Allowance for credit losses activity by loan portfolio | ||||
Beginning balance | $ 406 |
Allowance for Credit Losses - P
Allowance for Credit Losses - Provision for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Allowance for Credit Losses | ||||
Provision for loans | $ 2,100 | $ 1,200 | $ 5,451 | $ 1,402 |
Provision for unfunded commitments | (50) | 349 | ||
Total | $ 2,050 | $ 1,200 | $ 5,800 | $ 1,402 |
Allowance for Credit Losses -_2
Allowance for Credit Losses - Loan Rating and Year of Origination (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Term Loans Amortized Cost Basis by Origination Year | ||
Loans, gross | $ 1,717,729 | $ 1,635,718 |
Commercial and consumer loan portfolio | ||
Term Loans Amortized Cost Basis by Origination Year | ||
2023 | 181,150 | |
2022 | 292,353 | |
2021 | 244,422 | |
2020 | 182,788 | |
2019 | 66,451 | |
Prior | 212,401 | |
Revolving Loans Recorded Balance | 66,432 | |
Loans, gross | 1,246,554 | |
Revolving Loans Converted to Term | 557 | |
Commercial and consumer loan portfolio | Pass | ||
Term Loans Amortized Cost Basis by Origination Year | ||
2023 | 181,085 | |
2022 | 292,353 | |
2021 | 238,655 | |
2020 | 182,684 | |
2019 | 66,446 | |
Prior | 210,548 | |
Revolving Loans Recorded Balance | 66,432 | |
Loans, gross | 1,238,709 | |
Revolving Loans Converted to Term | 506 | |
Commercial and consumer loan portfolio | Special Mention | ||
Term Loans Amortized Cost Basis by Origination Year | ||
2023 | 65 | |
2021 | 5,767 | |
Prior | 1,061 | |
Loans, gross | 6,893 | |
Commercial and consumer loan portfolio | Substandard | ||
Term Loans Amortized Cost Basis by Origination Year | ||
2020 | 104 | |
2019 | 5 | |
Prior | 378 | |
Loans, gross | 487 | |
Commercial and consumer loan portfolio | Substandard Nonaccrual | ||
Term Loans Amortized Cost Basis by Origination Year | ||
Prior | 414 | |
Loans, gross | 465 | |
Revolving Loans Converted to Term | 51 | |
Commercial real estate | ||
Term Loans Amortized Cost Basis by Origination Year | ||
2023 | 64,729 | |
2022 | 124,701 | |
2021 | 161,745 | |
2020 | 107,937 | |
2019 | 38,611 | |
Prior | 147,625 | |
Loans, gross | 645,467 | 592,301 |
Revolving Loans Converted to Term | 119 | |
Commercial real estate | Pass | ||
Term Loans Amortized Cost Basis by Origination Year | ||
2023 | 64,729 | |
2022 | 124,701 | |
2021 | 155,982 | |
2020 | 107,937 | |
2019 | 38,611 | |
Prior | 146,396 | |
Loans, gross | 638,475 | |
Revolving Loans Converted to Term | 119 | |
Commercial real estate | Special Mention | ||
Term Loans Amortized Cost Basis by Origination Year | ||
2021 | 5,763 | |
Prior | 965 | |
Loans, gross | 6,728 | |
Commercial real estate | Substandard Nonaccrual | ||
Term Loans Amortized Cost Basis by Origination Year | ||
Prior | 264 | |
Loans, gross | 264 | |
Commercial business | ||
Term Loans Amortized Cost Basis by Origination Year | ||
2023 | 17,382 | |
2022 | 19,330 | |
2021 | 18,728 | |
2020 | 14,045 | |
2019 | 15,376 | |
Prior | 14,196 | |
Revolving Loans Recorded Balance | 19,496 | |
Loans, gross | 118,641 | 118,605 |
Revolving Loans Converted to Term | 88 | |
Commercial business | Pass | ||
Term Loans Amortized Cost Basis by Origination Year | ||
2023 | 17,317 | |
2022 | 19,330 | |
2021 | 18,728 | |
2020 | 14,045 | |
2019 | 15,376 | |
Prior | 14,196 | |
Revolving Loans Recorded Balance | 19,496 | |
Loans, gross | 118,576 | |
Revolving Loans Converted to Term | 88 | |
Commercial business | Special Mention | ||
Term Loans Amortized Cost Basis by Origination Year | ||
2023 | 65 | |
Loans, gross | 65 | |
Construction - commercial real estate | ||
Term Loans Amortized Cost Basis by Origination Year | ||
2023 | 23,177 | |
2022 | 30,632 | |
2021 | 1,150 | |
2020 | 8,035 | |
Loans, gross | 62,994 | 49,136 |
Construction - commercial real estate | Pass | ||
Term Loans Amortized Cost Basis by Origination Year | ||
2023 | 23,177 | |
2022 | 30,632 | |
2021 | 1,150 | |
2020 | 8,035 | |
Loans, gross | 62,994 | |
Land acquisition and development | ||
Term Loans Amortized Cost Basis by Origination Year | ||
2023 | 1,049 | |
2022 | 6,062 | |
2021 | 10,969 | |
2020 | 9,992 | |
Prior | 328 | |
Loans, gross | 28,400 | 37,537 |
Land acquisition and development | Pass | ||
Term Loans Amortized Cost Basis by Origination Year | ||
2023 | 1,049 | |
2022 | 6,062 | |
2021 | 10,969 | |
2020 | 9,992 | |
Prior | 328 | |
Loans, gross | 28,400 | |
Builder lines | ||
Term Loans Amortized Cost Basis by Origination Year | ||
2023 | 16,390 | |
2022 | 9,202 | |
2021 | 4,585 | |
2019 | 404 | |
Revolving Loans Recorded Balance | 206 | |
Loans, gross | 30,787 | 34,538 |
Builder lines | Pass | ||
Term Loans Amortized Cost Basis by Origination Year | ||
2023 | 16,390 | |
2022 | 9,202 | |
2021 | 4,585 | |
2019 | 404 | |
Revolving Loans Recorded Balance | 206 | |
Loans, gross | 30,787 | |
Construction - consumer real estate | ||
Term Loans Amortized Cost Basis by Origination Year | ||
2023 | 5,543 | |
2022 | 5,735 | |
2021 | 768 | |
Loans, gross | 12,046 | 10,539 |
Construction - consumer real estate | Pass | ||
Term Loans Amortized Cost Basis by Origination Year | ||
2023 | 5,543 | |
2022 | 5,735 | |
2021 | 768 | |
Loans, gross | 12,046 | |
Residential mortgage | ||
Term Loans Amortized Cost Basis by Origination Year | ||
2023 | 48,024 | |
2022 | 93,630 | |
2021 | 45,725 | |
2020 | 42,380 | |
2019 | 11,828 | |
Prior | 48,738 | |
Loans, gross | 290,325 | 266,267 |
Residential mortgage | Pass | ||
Term Loans Amortized Cost Basis by Origination Year | ||
2023 | 48,024 | |
2022 | 93,630 | |
2021 | 45,721 | |
2020 | 42,276 | |
2019 | 11,828 | |
Prior | 48,123 | |
Loans, gross | 289,602 | |
Residential mortgage | Special Mention | ||
Term Loans Amortized Cost Basis by Origination Year | ||
2021 | 4 | |
Prior | 96 | |
Loans, gross | 100 | |
Residential mortgage | Substandard | ||
Term Loans Amortized Cost Basis by Origination Year | ||
2020 | 104 | |
Prior | 378 | |
Loans, gross | 482 | |
Residential mortgage | Substandard Nonaccrual | ||
Term Loans Amortized Cost Basis by Origination Year | ||
Prior | 141 | |
Loans, gross | 141 | |
Equity lines | ||
Term Loans Amortized Cost Basis by Origination Year | ||
2021 | 35 | |
2020 | 70 | |
2019 | 5 | |
Prior | 887 | |
Revolving Loans Recorded Balance | 46,680 | |
Loans, gross | 48,027 | 43,300 |
Revolving Loans Converted to Term | 350 | |
Equity lines | Pass | ||
Term Loans Amortized Cost Basis by Origination Year | ||
2021 | 35 | |
2020 | 70 | |
Prior | 878 | |
Revolving Loans Recorded Balance | 46,680 | |
Loans, gross | 47,962 | |
Revolving Loans Converted to Term | 299 | |
Equity lines | Substandard | ||
Term Loans Amortized Cost Basis by Origination Year | ||
2019 | 5 | |
Loans, gross | 5 | |
Equity lines | Substandard Nonaccrual | ||
Term Loans Amortized Cost Basis by Origination Year | ||
Prior | 9 | |
Loans, gross | 60 | |
Revolving Loans Converted to Term | 51 | |
Other consumer | ||
Term Loans Amortized Cost Basis by Origination Year | ||
2023 | 4,856 | |
2022 | 3,061 | |
2021 | 717 | |
2020 | 329 | |
2019 | 227 | |
Prior | 627 | |
Revolving Loans Recorded Balance | 50 | |
Loans, gross | 9,867 | $ 8,938 |
Other consumer | Pass | ||
Term Loans Amortized Cost Basis by Origination Year | ||
2023 | 4,856 | |
2022 | 3,061 | |
2021 | 717 | |
2020 | 329 | |
2019 | 227 | |
Prior | 627 | |
Revolving Loans Recorded Balance | 50 | |
Loans, gross | $ 9,867 |
Allowance for Credit Losses - C
Allowance for Credit Losses - Credit Rating and Year of Origination (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Term Loans Amortized Cost Basis by Origination Year | ||
Loans, gross | $ 1,717,729 | $ 1,635,718 |
Consumer finance | ||
Term Loans Amortized Cost Basis by Origination Year | ||
2023 | 114,376 | |
2022 | 194,595 | |
2021 | 96,833 | |
2020 | 35,735 | |
2019 | 18,888 | |
Prior | 10,748 | |
Loans, gross | 471,175 | |
Consumer finance | Very good | ||
Term Loans Amortized Cost Basis by Origination Year | ||
2023 | 14,289 | |
2022 | 29,429 | |
2021 | 15,195 | |
2020 | 11,556 | |
2019 | 2,992 | |
Prior | 2,590 | |
Loans, gross | 76,051 | |
Consumer finance | Good | ||
Term Loans Amortized Cost Basis by Origination Year | ||
2023 | 33,772 | |
2022 | 54,934 | |
2021 | 18,923 | |
2020 | 5,374 | |
2019 | 1,816 | |
Prior | 922 | |
Loans, gross | 115,741 | |
Consumer finance | Fairly good | ||
Term Loans Amortized Cost Basis by Origination Year | ||
2023 | 36,520 | |
2022 | 60,243 | |
2021 | 29,565 | |
2020 | 7,099 | |
2019 | 4,816 | |
Prior | 2,099 | |
Loans, gross | 140,342 | |
Consumer finance | Fair | ||
Term Loans Amortized Cost Basis by Origination Year | ||
2023 | 24,257 | |
2022 | 40,299 | |
2021 | 24,503 | |
2020 | 7,973 | |
2019 | 5,854 | |
Prior | 2,676 | |
Loans, gross | 105,562 | |
Consumer finance | Marginal | ||
Term Loans Amortized Cost Basis by Origination Year | ||
2023 | 5,538 | |
2022 | 9,690 | |
2021 | 8,647 | |
2020 | 3,733 | |
2019 | 3,410 | |
Prior | 2,461 | |
Loans, gross | 33,479 | |
Consumer finance | Automobiles | ||
Term Loans Amortized Cost Basis by Origination Year | ||
2023 | 100,692 | |
2022 | 170,316 | |
2021 | 84,792 | |
2020 | 23,857 | |
2019 | 15,809 | |
Prior | 7,688 | |
Loans, gross | 403,154 | 411,112 |
Consumer finance | Automobiles | Very good | ||
Term Loans Amortized Cost Basis by Origination Year | ||
2023 | 7,814 | |
2022 | 13,655 | |
2021 | 4,904 | |
2020 | 1,170 | |
2019 | 338 | |
Prior | 34 | |
Loans, gross | 27,915 | |
Consumer finance | Automobiles | Good | ||
Term Loans Amortized Cost Basis by Origination Year | ||
2023 | 26,830 | |
2022 | 46,654 | |
2021 | 17,211 | |
2020 | 3,913 | |
2019 | 1,391 | |
Prior | 456 | |
Loans, gross | 96,455 | |
Consumer finance | Automobiles | Fairly good | ||
Term Loans Amortized Cost Basis by Origination Year | ||
2023 | 36,253 | |
2022 | 60,018 | |
2021 | 29,527 | |
2020 | 7,068 | |
2019 | 4,816 | |
Prior | 2,061 | |
Loans, gross | 139,743 | |
Consumer finance | Automobiles | Fair | ||
Term Loans Amortized Cost Basis by Origination Year | ||
2023 | 24,257 | |
2022 | 40,299 | |
2021 | 24,503 | |
2020 | 7,973 | |
2019 | 5,854 | |
Prior | 2,676 | |
Loans, gross | 105,562 | |
Consumer finance | Automobiles | Marginal | ||
Term Loans Amortized Cost Basis by Origination Year | ||
2023 | 5,538 | |
2022 | 9,690 | |
2021 | 8,647 | |
2020 | 3,733 | |
2019 | 3,410 | |
Prior | 2,461 | |
Loans, gross | 33,479 | |
Consumer finance | Marine and recreational vehicles | ||
Term Loans Amortized Cost Basis by Origination Year | ||
2023 | 13,684 | |
2022 | 24,279 | |
2021 | 12,041 | |
2020 | 11,878 | |
2019 | 3,079 | |
Prior | 3,060 | |
Loans, gross | 68,021 | $ 63,445 |
Consumer finance | Marine and recreational vehicles | Very good | ||
Term Loans Amortized Cost Basis by Origination Year | ||
2023 | 6,475 | |
2022 | 15,774 | |
2021 | 10,291 | |
2020 | 10,386 | |
2019 | 2,654 | |
Prior | 2,556 | |
Loans, gross | 48,136 | |
Consumer finance | Marine and recreational vehicles | Good | ||
Term Loans Amortized Cost Basis by Origination Year | ||
2023 | 6,942 | |
2022 | 8,280 | |
2021 | 1,712 | |
2020 | 1,461 | |
2019 | 425 | |
Prior | 466 | |
Loans, gross | 19,286 | |
Consumer finance | Marine and recreational vehicles | Fairly good | ||
Term Loans Amortized Cost Basis by Origination Year | ||
2023 | 267 | |
2022 | 225 | |
2021 | 38 | |
2020 | 31 | |
Prior | 38 | |
Loans, gross | $ 599 |
Allowance for Credit Losses - G
Allowance for Credit Losses - Gross Charge-offs of loans by Year of Origination (Details) | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Current Period Gross Charge-offs by Origination Year | |
2023 | $ 689,000 |
2022 | 4,519,000 |
2021 | 2,628,000 |
2020 | 626,000 |
2019 | 485,000 |
Prior | 615,000 |
Total | 9,562,000 |
Collateral dependent loans | 0 |
Demand deposit overdrafts | |
Current Period Gross Charge-offs by Origination Year | |
2023 | 199,000 |
Commercial real estate | |
Current Period Gross Charge-offs by Origination Year | |
2022 | 16,000 |
Total | 16,000 |
Equity lines | |
Current Period Gross Charge-offs by Origination Year | |
Prior | 8,000 |
Total | 8,000 |
Other consumer | |
Current Period Gross Charge-offs by Origination Year | |
2023 | 199,000 |
2022 | 25,000 |
2020 | 3,000 |
2019 | 2,000 |
Prior | 3,000 |
Total | 232,000 |
Consumer finance | |
Current Period Gross Charge-offs by Origination Year | |
Total | 9,306,000 |
Consumer finance | Automobiles | |
Current Period Gross Charge-offs by Origination Year | |
2023 | 490,000 |
2022 | 4,396,000 |
2021 | 2,628,000 |
2020 | 583,000 |
2019 | 477,000 |
Prior | 567,000 |
Total | 9,141,000 |
Consumer finance | Marine and recreational vehicles | |
Current Period Gross Charge-offs by Origination Year | |
2022 | 82,000 |
2020 | 40,000 |
2019 | 6,000 |
Prior | 37,000 |
Total | $ 165,000 |
Allowance for Credit Losses -_3
Allowance for Credit Losses - Change in Allowance for Loan Losses (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Allowance balance attributable to loans: | |
Beginning balance | $ 40,157 |
Provision charged to operations | 1,402 |
Loans charged off | (4,319) |
Recoveries of loans previously charged off | 3,640 |
Ending balance | 40,880 |
Residential mortgage | |
Allowance balance attributable to loans: | |
Beginning balance | 2,660 |
Provision charged to operations | (6) |
Recoveries of loans previously charged off | 16 |
Ending balance | 2,670 |
Real Estate Construction | |
Allowance balance attributable to loans: | |
Beginning balance | 856 |
Provision charged to operations | (62) |
Ending balance | 794 |
Commercial, Financial & Agricultural | |
Allowance balance attributable to loans: | |
Beginning balance | 11,085 |
Provision charged to operations | (623) |
Loans charged off | (11) |
Recoveries of loans previously charged off | 13 |
Ending balance | 10,464 |
Equity lines | |
Allowance balance attributable to loans: | |
Beginning balance | 593 |
Provision charged to operations | (60) |
Recoveries of loans previously charged off | 2 |
Ending balance | 535 |
Consumer | |
Allowance balance attributable to loans: | |
Beginning balance | 172 |
Provision charged to operations | 83 |
Loans charged off | (193) |
Recoveries of loans previously charged off | 93 |
Ending balance | 155 |
Consumer finance | |
Allowance balance attributable to loans: | |
Beginning balance | 24,791 |
Provision charged to operations | 2,070 |
Loans charged off | (4,115) |
Recoveries of loans previously charged off | 3,516 |
Ending balance | $ 26,262 |
Allowance for Credit Losses - A
Allowance for Credit Losses - Allowance and Loans by Impairment Methodology (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2021 |
Allowance balance attributable to loans: | ||||
Individually evaluated for impairment | $ 51 | |||
Collectively evaluated for impairment | 40,467 | |||
Total allowance | $ 40,248 | 40,518 | $ 40,880 | $ 40,157 |
Loans: | ||||
Individually evaluated for impairment | 823 | |||
Collectively evaluated for impairment | 1,633,440 | |||
Acquired loans - PCI | 1,455 | |||
Total Loans | 1,635,718 | |||
Residential mortgage | ||||
Allowance balance attributable to loans: | ||||
Individually evaluated for impairment | 51 | |||
Collectively evaluated for impairment | 2,571 | |||
Total allowance | 2,622 | 2,670 | 2,660 | |
Loans: | ||||
Individually evaluated for impairment | 797 | |||
Collectively evaluated for impairment | 265,170 | |||
Acquired loans - PCI | 300 | |||
Total Loans | 266,267 | |||
Real Estate Construction | ||||
Allowance balance attributable to loans: | ||||
Collectively evaluated for impairment | 788 | |||
Total allowance | 788 | 794 | 856 | |
Loans: | ||||
Collectively evaluated for impairment | 59,675 | |||
Total Loans | 59,675 | |||
Commercial, Financial & Agricultural | ||||
Allowance balance attributable to loans: | ||||
Collectively evaluated for impairment | 10,431 | |||
Total allowance | 10,431 | 10,464 | 11,085 | |
Loans: | ||||
Collectively evaluated for impairment | 781,867 | |||
Acquired loans - PCI | 1,114 | |||
Total Loans | 782,981 | |||
Equity lines | ||||
Allowance balance attributable to loans: | ||||
Collectively evaluated for impairment | 497 | |||
Total allowance | 497 | 535 | 593 | |
Loans: | ||||
Individually evaluated for impairment | 26 | |||
Collectively evaluated for impairment | 43,259 | |||
Acquired loans - PCI | 15 | |||
Total Loans | 43,300 | |||
Consumer | ||||
Allowance balance attributable to loans: | ||||
Collectively evaluated for impairment | 211 | |||
Total allowance | 211 | 155 | 172 | |
Loans: | ||||
Collectively evaluated for impairment | 8,912 | |||
Acquired loans - PCI | 26 | |||
Total Loans | 8,938 | |||
Consumer finance | ||||
Allowance balance attributable to loans: | ||||
Collectively evaluated for impairment | 25,969 | |||
Total allowance | $ 24,389 | 25,969 | $ 26,262 | $ 24,791 |
Loans: | ||||
Collectively evaluated for impairment | 474,557 | |||
Total Loans | $ 474,557 |
Allowance for Credit Losses -_4
Allowance for Credit Losses - Credit Quality Indicators (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Allowance for loan losses | |
Loans, excluding consumer finance | $ 1,161,161 |
Pass | |
Allowance for loan losses | |
Loans, excluding consumer finance | 1,152,847 |
Special Mention | |
Allowance for loan losses | |
Loans, excluding consumer finance | 1,487 |
Substandard | |
Allowance for loan losses | |
Loans, excluding consumer finance | 6,563 |
Substandard Nonaccrual | |
Allowance for loan losses | |
Loans, excluding consumer finance | 264 |
Doubtful | |
Allowance for loan losses | |
Loans, excluding consumer finance | 0 |
Residential mortgage | |
Allowance for loan losses | |
Loans, excluding consumer finance | 266,267 |
Residential mortgage | Pass | |
Allowance for loan losses | |
Loans, excluding consumer finance | 264,891 |
Residential mortgage | Special Mention | |
Allowance for loan losses | |
Loans, excluding consumer finance | 518 |
Residential mortgage | Substandard | |
Allowance for loan losses | |
Loans, excluding consumer finance | 702 |
Residential mortgage | Substandard Nonaccrual | |
Allowance for loan losses | |
Loans, excluding consumer finance | 156 |
Construction - commercial real estate | |
Allowance for loan losses | |
Loans, excluding consumer finance | 49,136 |
Construction - commercial real estate | Pass | |
Allowance for loan losses | |
Loans, excluding consumer finance | 49,136 |
Construction - consumer real estate | |
Allowance for loan losses | |
Loans, excluding consumer finance | 10,539 |
Construction - consumer real estate | Pass | |
Allowance for loan losses | |
Loans, excluding consumer finance | 10,539 |
Commercial real estate | |
Allowance for loan losses | |
Loans, excluding consumer finance | 592,301 |
Commercial real estate | Pass | |
Allowance for loan losses | |
Loans, excluding consumer finance | 585,707 |
Commercial real estate | Special Mention | |
Allowance for loan losses | |
Loans, excluding consumer finance | 738 |
Commercial real estate | Substandard | |
Allowance for loan losses | |
Loans, excluding consumer finance | 5,856 |
Land acquisition and development | |
Allowance for loan losses | |
Loans, excluding consumer finance | 37,537 |
Land acquisition and development | Pass | |
Allowance for loan losses | |
Loans, excluding consumer finance | 37,537 |
Builder lines | |
Allowance for loan losses | |
Loans, excluding consumer finance | 34,538 |
Builder lines | Pass | |
Allowance for loan losses | |
Loans, excluding consumer finance | 34,538 |
Commercial business | |
Allowance for loan losses | |
Loans, excluding consumer finance | 118,605 |
Commercial business | Pass | |
Allowance for loan losses | |
Loans, excluding consumer finance | 118,605 |
Equity lines | |
Allowance for loan losses | |
Loans, excluding consumer finance | 43,300 |
Equity lines | Pass | |
Allowance for loan losses | |
Loans, excluding consumer finance | 43,147 |
Equity lines | Special Mention | |
Allowance for loan losses | |
Loans, excluding consumer finance | 40 |
Equity lines | Substandard | |
Allowance for loan losses | |
Loans, excluding consumer finance | 5 |
Equity lines | Substandard Nonaccrual | |
Allowance for loan losses | |
Loans, excluding consumer finance | 108 |
Other consumer | |
Allowance for loan losses | |
Loans, excluding consumer finance | 8,938 |
Other consumer | Pass | |
Allowance for loan losses | |
Loans, excluding consumer finance | 8,747 |
Other consumer | Special Mention | |
Allowance for loan losses | |
Loans, excluding consumer finance | $ 191 |
Allowance for Credit Losses -_5
Allowance for Credit Losses - Loans by Credit Quality Indicators - Performing and Non-Performing (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Allowance for loan losses | |
Loans | $ 1,635,718 |
Consumer finance | |
Allowance for loan losses | |
Loans | 474,557 |
Consumer finance | Performing | |
Allowance for loan losses | |
Loans | 473,632 |
Consumer finance | Non-performing | |
Allowance for loan losses | |
Loans | 925 |
Consumer finance | Automobiles | |
Allowance for loan losses | |
Loans | 411,112 |
Consumer finance | Automobiles | Performing | |
Allowance for loan losses | |
Loans | 410,270 |
Consumer finance | Automobiles | Non-performing | |
Allowance for loan losses | |
Loans | 842 |
Consumer finance | Marine and recreational vehicles | |
Allowance for loan losses | |
Loans | 63,445 |
Consumer finance | Marine and recreational vehicles | Performing | |
Allowance for loan losses | |
Loans | 63,362 |
Consumer finance | Marine and recreational vehicles | Non-performing | |
Allowance for loan losses | |
Loans | $ 83 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Goodwill (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Goodwill and Other Intangible Assets | |||
Goodwill | $ 25,191 | $ 25,191 | |
Changes in the recorded balance of goodwill | $ 0 | $ 0 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Other Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Gross carrying amounts and accumulated amortization | ||
Gross Carrying Amount | $ 3,116 | $ 3,116 |
Accumulated Amortization | (1,641) | (1,437) |
Other intangible assets, net | 1,475 | 1,679 |
Core deposit intangibles | ||
Gross carrying amounts and accumulated amortization | ||
Gross Carrying Amount | 1,711 | 1,711 |
Accumulated Amortization | (557) | (464) |
Other amortizable intangibles | ||
Gross carrying amounts and accumulated amortization | ||
Gross Carrying Amount | 1,405 | 1,405 |
Accumulated Amortization | $ (1,084) | $ (973) |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Amortization (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Goodwill and Other Intangible Assets | ||||
Amortization of intangible assets | $ 68,000 | $ 75,000 | $ 204,000 | $ 224,000 |
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 | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 01, 2022 | |
Shareholders' Equity | |||||
Shares repurchased (in shares) | 34,262 | 66,143 | |||
Cost of shares repurchased | $ 1,690 | $ 3,300 | |||
Number of shares withheld from employees to satisfy tax withholding obligations | 7,765 | 4,503 | |||
Share Repurchase Program 2022 | |||||
Shareholders' Equity | |||||
Stock repurchase program, authorized amount | $ 10,000 | ||||
Cost of shares repurchased | $ 1,310 | $ 5,850 | |||
Remaining shares amount available for repurchases | $ 3,700 | $ 3,700 |
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 | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Balance, beginning of the period | $ (36,958) | |||
Other comprehensive loss, net of tax | $ (5,668) | $ (14,795) | (4,116) | $ (38,233) |
Balance, end of period | (41,074) | (41,074) | ||
Accumulated Other Comprehensive Loss, Net | ||||
Balance, beginning of the period | (35,406) | (25,525) | (36,958) | (2,087) |
Other comprehensive (loss) income arising during the period | (7,190) | (18,665) | (5,282) | (48,207) |
Related income tax effects | 1,503 | 3,876 | 1,105 | 9,995 |
Other comprehensive income (loss) arising during the period, net of tax | (5,687) | (14,789) | (4,177) | (38,212) |
Reclassifications into net income | 24 | (8) | 77 | (27) |
Related income tax effects | (5) | 2 | (16) | 6 |
Reclassifications into net income, net of tax | 19 | (6) | 61 | (21) |
Other comprehensive loss, net of tax | (5,668) | (14,795) | (4,116) | (38,233) |
Balance, end of period | (41,074) | (40,320) | (41,074) | (40,320) |
Securities Available For Sale | ||||
Balance, beginning of the period | (33,635) | (24,333) | (35,184) | 437 |
Other comprehensive (loss) income arising during the period | (7,369) | (19,547) | (5,413) | (50,902) |
Related income tax effects | 1,548 | 4,104 | 1,137 | 10,689 |
Other comprehensive income (loss) arising during the period, net of tax | (5,821) | (15,443) | (4,276) | (40,213) |
Reclassifications into net income | 5 | |||
Related income tax effects | (1) | |||
Reclassifications into net income, net of tax | 4 | |||
Other comprehensive loss, net of tax | (5,821) | (15,443) | (4,272) | (40,213) |
Balance, end of period | (39,456) | (39,776) | (39,456) | (39,776) |
Defined Benefit Plan | ||||
Balance, beginning of the period | (3,195) | (2,067) | (3,236) | (2,055) |
Reclassifications into net income | 25 | (7) | 77 | (22) |
Related income tax effects | (5) | 2 | (16) | 5 |
Reclassifications into net income, net of tax | 20 | (5) | 61 | (17) |
Other comprehensive loss, net of tax | 20 | (5) | 61 | (17) |
Balance, end of period | (3,175) | (2,072) | (3,175) | (2,072) |
Cash Flow Hedges | ||||
Balance, beginning of the period | 1,424 | 875 | 1,462 | (469) |
Other comprehensive (loss) income arising during the period | 179 | 882 | 131 | 2,695 |
Related income tax effects | (45) | (228) | (32) | (694) |
Other comprehensive income (loss) arising during the period, net of tax | 134 | 654 | 99 | 2,001 |
Reclassifications into net income | (1) | (1) | (5) | (5) |
Related income tax effects | 1 | 1 | ||
Reclassifications into net income, net of tax | (1) | (1) | (4) | (4) |
Other comprehensive loss, net of tax | 133 | 653 | 95 | 1,997 |
Balance, end of period | $ 1,557 | $ 1,528 | $ 1,557 | $ 1,528 |
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 | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Net losses on sales, maturities and calls of available for sale securities | $ (5) | |||
Noninterest expenses - Other | $ 6,467 | $ 6,705 | 19,408 | $ 19,192 |
Interest expense - Trust preferred capital notes | 301 | 294 | 890 | 867 |
Income tax expense | 1,323 | 1,675 | 4,309 | 5,144 |
Reclassifications from accumulated other comprehensive loss into net income | ||||
Total reclassifications into net income | (19) | 6 | (61) | 21 |
Securities Available For Sale | Reclassifications from accumulated other comprehensive loss into net income | ||||
Total reclassifications into net income | (4) | |||
Reclassification of net realized gains into net income | Reclassifications from accumulated other comprehensive loss into net income | ||||
Net losses on sales, maturities and calls of available for sale securities | (5) | |||
Related income tax effects | Reclassifications from accumulated other comprehensive loss into net income | ||||
Income tax expense | 1 | |||
Defined Benefit Plan | Reclassifications from accumulated other comprehensive loss into net income | ||||
Total reclassifications into net income | (20) | 5 | (61) | 17 |
Reclassification of recognized net actuarial losses into net income | Reclassifications from accumulated other comprehensive loss into net income | ||||
Noninterest expenses - Other | (42) | (10) | (128) | (29) |
Amortization of prior service credit into net income | Reclassifications from accumulated other comprehensive loss into net income | ||||
Noninterest expenses - Other | 17 | 17 | 51 | 51 |
Related income tax effects. | Reclassifications from accumulated other comprehensive loss into net income | ||||
Income tax expense | 5 | (2) | 16 | (5) |
Cash Flow Hedges | Reclassifications from accumulated other comprehensive loss into net income | ||||
Total reclassifications into net income | 1 | 1 | 4 | 4 |
Amortization of hedging gains into net income | Reclassifications from accumulated other comprehensive loss into net income | ||||
Interest expense - Trust preferred capital notes | $ 1 | $ 1 | 5 | 5 |
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 | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Components of earnings per share calculations | ||||
Net income attributable to C&F Financial Corporation | $ 5,789 | $ 6,480 | $ 18,536 | $ 18,851 |
Weighted average shares outstanding-basic | 3,391,624 | 3,511,326 | 3,426,845 | 3,531,064 |
Weighted average shares outstanding-diluted | 3,391,624 | 3,511,326 | 3,426,845 | 3,531,064 |
Share-Based Plans - Restricted
Share-Based Plans - Restricted Stock Activity (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Shares | ||||
Nonvested, beginning of period (in shares) | 145,677 | |||
Nonvested, end of period (in shares) | 130,629 | 130,629 | ||
Restricted Stock | ||||
Shares | ||||
Nonvested, beginning of period (in shares) | 145,677 | 140,577 | ||
Granted (in shares) | 18,540 | 16,430 | ||
Vested (in shares) | (30,043) | (15,920) | ||
Forfeited (in shares) | (3,545) | (2,930) | ||
Nonvested, end of period (in shares) | 130,629 | 138,157 | 130,629 | 138,157 |
Weighted-Average Grant Date Fair Value | ||||
Nonvested, beginning of period (in dollars per share) | $ 48.88 | $ 48.57 | ||
Granted (in dollars per share) | 57.32 | 50.56 | ||
Vested (in dollars per share) | 51.53 | 50.95 | ||
Forfeited (in dollars per share) | 49.37 | 48.23 | ||
Nonvested, end of period (in dollars per share) | $ 55.36 | $ 48.54 | $ 55.36 | $ 48.54 |
Additional information | ||||
Compensation expense | $ 581,000 | $ 524,000 | $ 1,510,000 | $ 1,530,000 |
Compensation expense after tax | 412,000 | $ 375,000 | 1,020,000 | $ 1,090,000 |
Unrecognized compensation expense | $ 2,900,000 | $ 2,900,000 | ||
Restricted Stock | Employees | ||||
Summary of restricted stock awards | ||||
Vesting period | 5 years | |||
Restricted Stock | Nonemployee Directors | ||||
Summary of restricted stock awards | ||||
Vesting period | 3 years |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Other components of net periodic benefit cost: | ||||
Net periodic benefit cost | $ 692 | $ 480 | ||
Cash Balance Plan | C&F Bank | ||||
Components of net periodic benefit cost | ||||
Service cost, included in salaries and employee benefits | $ 344 | $ 459 | 1,032 | 1,378 |
Other components of net periodic benefit cost: | ||||
Interest cost | $ 182 | $ 123 | $ 546 | $ 369 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Interest Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Noninterest Expense | Other Noninterest Expense | Other Noninterest Expense | Other Noninterest Expense |
Expected return on plan assets | $ (321) | $ (415) | $ (963) | $ (1,245) |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Expected Return (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Noninterest Expense | Other Noninterest Expense | Other Noninterest Expense | Other Noninterest Expense |
Amortization of prior service credit | $ (17) | $ (17) | $ (51) | $ (51) |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Amortization of Prior Service Cost (Credit), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Noninterest Expense | Other Noninterest Expense | Other Noninterest Expense | Other Noninterest Expense |
Recognized net actuarial losses | $ 42 | $ 10 | $ 128 | $ 29 |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Amortization of Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Noninterest Expense | Other Noninterest Expense | Other Noninterest Expense | Other Noninterest Expense |
Other components of net periodic benefit cost, included in other noninterest expense | $ (114) | $ (299) | $ (340) | $ (898) |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) Excluding Service Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Noninterest Expense | Other Noninterest Expense | Other Noninterest Expense | Other Noninterest Expense |
Net periodic benefit cost | $ 230 | $ 160 | $ 692 | $ 480 |
Fair Value of Assets and Liab_3
Fair Value of Assets and Liabilities - Other investments (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Fair Value of Assets and Liabilities | |||||
Fair value of investment in Other investments companies | $ 2,020,000 | $ 2,020,000 | $ 2,160,000 | ||
Unrealized gains or losses | (9,000) | $ (96,000) | 136,000 | $ (77,000) | |
Other income | 3,630,000 | ||||
Other income net of tax | $ 3,650,000 | ||||
Unrealized gains from change in fair value of investments | $ 120,000 | $ (20,000) |
Fair Value of Assets and Liab_4
Fair Value of Assets and Liabilities - Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Securities available for sale | ||
Securities available for sale | $ 460,653 | $ 512,591 |
Interest rate swaps on loans | Cash flow hedges | ||
Securities available for sale | ||
Derivatives | 2,073 | 1,941 |
Recurring | ||
Securities available for sale | ||
Securities available for sale | 460,653 | 512,591 |
Loans held for sale | 25,469 | 14,259 |
Other investments | 3,629 | 3,649 |
Total assets | 499,519 | 539,159 |
Liabilities: | ||
Total liabilities | 7,132 | 6,328 |
Recurring | Cash flow hedges | ||
Securities available for sale | ||
Derivatives | 2,073 | 1,941 |
Recurring | IRLC | ||
Securities available for sale | ||
Derivatives | 563 | 391 |
Recurring | Interest rate swaps on loans | ||
Securities available for sale | ||
Derivatives | 7,132 | 6,328 |
Liabilities: | ||
Derivatives | 7,132 | 6,328 |
Level 2 | Recurring | ||
Securities available for sale | ||
Securities available for sale | 460,653 | 512,591 |
Loans held for sale | 25,469 | 14,259 |
Other investments | 3,629 | 3,649 |
Total assets | 499,519 | 539,159 |
Liabilities: | ||
Total liabilities | 7,132 | 6,328 |
Level 2 | Recurring | Cash flow hedges | ||
Securities available for sale | ||
Derivatives | 2,073 | 1,941 |
Level 2 | Recurring | IRLC | ||
Securities available for sale | ||
Derivatives | 563 | 391 |
Level 2 | Recurring | Interest rate swaps on loans | ||
Securities available for sale | ||
Derivatives | 7,132 | 6,328 |
Liabilities: | ||
Derivatives | 7,132 | 6,328 |
U.S. Treasury securities | ||
Securities available for sale | ||
Securities available for sale | 51,394 | 58,833 |
U.S. Treasury securities | Recurring | ||
Securities available for sale | ||
Securities available for sale | 51,394 | 58,833 |
U.S. Treasury securities | Level 2 | Recurring | ||
Securities available for sale | ||
Securities available for sale | 51,394 | 58,833 |
U.S. government agencies and corporations | ||
Securities available for sale | ||
Securities available for sale | 94,050 | 130,274 |
U.S. government agencies and corporations | Recurring | ||
Securities available for sale | ||
Securities available for sale | 94,050 | 130,274 |
U.S. government agencies and corporations | Level 2 | Recurring | ||
Securities available for sale | ||
Securities available for sale | 94,050 | 130,274 |
Mortgage-backed securities | ||
Securities available for sale | ||
Securities available for sale | 160,315 | 179,918 |
Mortgage-backed securities | Recurring | ||
Securities available for sale | ||
Securities available for sale | 160,315 | 179,918 |
Mortgage-backed securities | Level 2 | Recurring | ||
Securities available for sale | ||
Securities available for sale | 160,315 | 179,918 |
Obligations of states and political subdivisions | ||
Securities available for sale | ||
Securities available for sale | 134,165 | 120,827 |
Obligations of states and political subdivisions | Recurring | ||
Securities available for sale | ||
Securities available for sale | 134,165 | 120,827 |
Obligations of states and political subdivisions | Level 2 | Recurring | ||
Securities available for sale | ||
Securities available for sale | 134,165 | 120,827 |
Corporate and other debt securities | ||
Securities available for sale | ||
Securities available for sale | 20,729 | 22,739 |
Corporate and other debt securities | Recurring | ||
Securities available for sale | ||
Securities available for sale | 20,729 | 22,739 |
Corporate and other debt securities | Level 2 | Recurring | ||
Securities available for sale | ||
Securities available for sale | $ 20,729 | $ 22,739 |
Fair Value of Assets and Liab_5
Fair Value of Assets and Liabilities - Financial Assets Measured at Fair Value on Non-Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
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 | Sep. 30, 2023 | Dec. 31, 2022 |
Assets: | ||
Securities available for sale | $ 460,653 | $ 512,591 |
Bank-owned life insurance | 21,248 | 20,909 |
Carrying Value | ||
Assets: | ||
Cash and short-term investments | 73,002 | 28,898 |
Securities available for sale | 460,653 | 512,591 |
Loans, net | 1,677,481 | 1,595,200 |
Loans held for sale | 25,469 | 14,259 |
Other investments | 3,629 | 3,649 |
Bank-owned life insurance | 21,248 | 20,909 |
Accrued interest receivable | 10,039 | 8,982 |
Financial liabilities: | ||
Demand and savings deposits | 1,431,140 | 1,622,566 |
Time deposits | 597,289 | 381,294 |
Borrowings | 141,042 | 85,943 |
Accrued interest payable | 3,188 | 950 |
Total Fair Value | ||
Assets: | ||
Cash and short-term investments | 73,002 | 28,850 |
Securities available for sale | 460,653 | 512,591 |
Loans, net | 1,618,671 | 1,538,062 |
Loans held for sale | 25,469 | 14,259 |
Other investments | 3,629 | 3,649 |
Bank-owned life insurance | 21,248 | 20,909 |
Accrued interest receivable | 10,039 | 8,982 |
Financial liabilities: | ||
Demand and savings deposits | 1,431,140 | 1,622,566 |
Time deposits | 591,113 | 374,267 |
Borrowings | 125,792 | 71,906 |
Accrued interest payable | 3,188 | 950 |
Total Fair Value | Level 1 | ||
Assets: | ||
Cash and short-term investments | 70,512 | 26,661 |
Accrued interest receivable | 10,039 | 8,982 |
Financial liabilities: | ||
Demand and savings deposits | 1,431,140 | 1,622,566 |
Accrued interest payable | 3,188 | 950 |
Total Fair Value | Level 2 | ||
Assets: | ||
Cash and short-term investments | 2,490 | 2,189 |
Securities available for sale | 460,653 | 512,591 |
Loans held for sale | 25,469 | 14,259 |
Other investments | 3,629 | 3,649 |
Bank-owned life insurance | 21,248 | 20,909 |
Financial liabilities: | ||
Time deposits | 591,113 | 374,267 |
Borrowings | 125,792 | 71,906 |
Total Fair Value | Level 3 | ||
Assets: | ||
Loans, net | 1,618,671 | 1,538,062 |
IRLC | Carrying Value | ||
Assets: | ||
Derivatives | 563 | 391 |
IRLC | Total Fair Value | ||
Assets: | ||
Derivatives | 563 | 391 |
IRLC | Total Fair Value | Level 2 | ||
Assets: | ||
Derivatives | 563 | 391 |
Interest rate swaps on loans | Carrying Value | ||
Assets: | ||
Derivatives | 7,132 | 6,328 |
Financial liabilities: | ||
Derivatives | 7,132 | 6,328 |
Interest rate swaps on loans | Total Fair Value | ||
Assets: | ||
Derivatives | 7,132 | 6,328 |
Financial liabilities: | ||
Derivatives | 7,132 | 6,328 |
Interest rate swaps on loans | Total Fair Value | Level 2 | ||
Assets: | ||
Derivatives | 7,132 | 6,328 |
Financial liabilities: | ||
Derivatives | 7,132 | 6,328 |
Cash flow hedges | Carrying Value | ||
Assets: | ||
Derivatives | 2,073 | 1,941 |
Cash flow hedges | Total Fair Value | ||
Assets: | ||
Derivatives | 2,073 | 1,941 |
Cash flow hedges | Total Fair Value | Level 2 | ||
Assets: | ||
Derivatives | 2,073 | 1,941 |
Cash flow hedges | Interest rate swaps on loans | ||
Assets: | ||
Derivatives | $ 2,073 | $ 1,941 |
Business Segments - Segment Rep
Business Segments - Segment Reporting (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) segment | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Business Segments | |||||
Number of principal business segments | segment | 3 | ||||
Interest income | $ 31,686 | $ 26,326 | $ 91,729 | $ 72,949 | |
Interest expense | 7,224 | 1,946 | 17,964 | 5,462 | |
Net interest income | 24,462 | 24,380 | 73,765 | 67,487 | |
Gains on sales of loans | 1,220 | 1,870 | 4,930 | 6,763 | |
Other noninterest income | 4,800 | 4,259 | 16,296 | 11,758 | |
Net revenue | 30,482 | 30,509 | 94,991 | 86,008 | |
Provision for credit losses | 2,050 | 1,200 | 5,800 | 1,402 | |
Noninterest expense | 21,332 | 21,089 | 66,224 | 60,399 | |
Income before income taxes | 7,100 | 8,220 | 22,967 | 24,207 | |
Income tax expense (benefit) | 1,323 | 1,675 | 4,309 | 5,144 | |
Net income | 5,777 | 6,545 | 18,658 | 19,063 | |
Capital expenditures | 409 | 964 | 1,019 | 2,314 | |
Depreciation and amortization | 956 | 1,082 | 2,919 | 3,305 | |
Total assets | 2,421,705 | 2,421,705 | $ 2,332,317 | ||
Operating Segments | Community Banking | |||||
Business Segments | |||||
Interest income | 25,066 | 18,766 | 72,531 | 50,612 | |
Interest expense | 6,675 | 1,353 | 16,268 | 3,700 | |
Net interest income | 18,391 | 17,413 | 56,263 | 46,912 | |
Other noninterest income | 4,221 | 3,903 | 12,173 | 11,962 | |
Net revenue | 22,612 | 21,316 | 68,436 | 58,874 | |
Provision for credit losses | 500 | 1,550 | (700) | ||
Noninterest expense | 15,129 | 14,621 | 45,063 | 42,605 | |
Income before income taxes | 6,983 | 6,695 | 21,823 | 16,969 | |
Income tax expense (benefit) | 1,298 | 1,274 | 4,081 | 3,215 | |
Net income | 5,685 | 5,421 | 17,742 | 13,754 | |
Capital expenditures | 251 | 961 | 861 | 2,232 | |
Depreciation and amortization | 838 | 923 | 2,558 | 2,817 | |
Total assets | 2,299,620 | 2,299,620 | 2,206,299 | ||
Operating Segments | Mortgage Banking | |||||
Business Segments | |||||
Interest income | 517 | 556 | 1,312 | 1,674 | |
Interest expense | 232 | 247 | 513 | 561 | |
Net interest income | 285 | 309 | 799 | 1,113 | |
Gains on sales of loans | 1,198 | 1,904 | 4,983 | 7,251 | |
Other noninterest income | 1,144 | 1,197 | 3,413 | 3,918 | |
Net revenue | 2,627 | 3,410 | 9,195 | 12,282 | |
Provision for credit losses | 32 | ||||
Noninterest expense | 2,631 | 3,398 | 8,459 | 10,045 | |
Income before income taxes | (4) | 12 | 736 | 2,205 | |
Income tax expense (benefit) | 1 | (12) | 168 | 533 | |
Net income | (5) | 24 | 568 | 1,672 | |
Capital expenditures | 12 | 3 | 12 | 65 | |
Depreciation and amortization | 18 | 57 | 61 | 180 | |
Total assets | 35,995 | 35,995 | 24,500 | ||
Operating Segments | Consumer Finance. | |||||
Business Segments | |||||
Interest income | 12,020 | 11,175 | 35,313 | 30,975 | |
Interest expense | 5,748 | 3,941 | 17,060 | 9,800 | |
Net interest income | 6,272 | 7,234 | 18,253 | 21,175 | |
Other noninterest income | (19) | 49 | 25 | 164 | |
Net revenue | 6,253 | 7,283 | 18,278 | 21,339 | |
Provision for credit losses | 1,550 | 1,200 | 4,250 | 2,070 | |
Noninterest expense | 3,761 | 3,639 | 10,909 | 10,978 | |
Income before income taxes | 942 | 2,444 | 3,119 | 8,291 | |
Income tax expense (benefit) | 260 | 665 | 858 | 2,255 | |
Net income | 682 | 1,779 | 2,261 | 6,036 | |
Capital expenditures | 146 | 146 | 17 | ||
Depreciation and amortization | 100 | 102 | 300 | 308 | |
Total assets | 478,346 | 478,346 | 479,864 | ||
Operating Segments | Other | |||||
Business Segments | |||||
Interest expense | 548 | 593 | 1,696 | 1,762 | |
Net interest income | (548) | (593) | (1,696) | (1,762) | |
Other noninterest income | (496) | (826) | 840 | (4,174) | |
Net revenue | (1,044) | (1,419) | (856) | (5,936) | |
Noninterest expense | (172) | (553) | 1,839 | (3,186) | |
Income before income taxes | (872) | (866) | (2,695) | (2,750) | |
Income tax expense (benefit) | (246) | (238) | (790) | (752) | |
Net income | (626) | (628) | (1,905) | (1,998) | |
Total assets | 35,984 | 35,984 | 43,241 | ||
Eliminations | |||||
Business Segments | |||||
Interest income | (5,917) | (4,171) | (17,427) | (10,312) | |
Interest expense | (5,979) | (4,188) | (17,573) | (10,361) | |
Net interest income | 62 | 17 | 146 | 49 | |
Gains on sales of loans | 22 | (34) | (53) | (488) | |
Other noninterest income | (50) | (64) | (155) | (112) | |
Net revenue | 34 | (81) | (62) | (551) | |
Noninterest expense | (17) | (16) | (46) | (43) | |
Income before income taxes | 51 | (65) | (16) | (508) | |
Income tax expense (benefit) | 10 | (14) | (8) | (107) | |
Net income | 41 | $ (51) | (8) | $ (401) | |
Total assets | $ (428,240) | $ (428,240) | $ (421,587) |
Business Segments - Other (Deta
Business Segments - Other (Details) | 9 Months Ended |
Sep. 30, 2023 item | |
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% |
Ceiling rate (as a percent) | 6% |
Consumer Finance. | Minimum | |
Business Segments | |
Fixed rate (as a percent) | 3.20% |
Consumer Finance. | Maximum | |
Business Segments | |
Fixed rate (as a percent) | 5.10% |
Consumer Finance. | One month SOFR | Minimum | |
Business Segments | |
Variable rate, spread (as a percent) | 2.115% |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities - Loan Commitments (Details) - C&F Bank - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Standby Letters of Credit | ||
Commitments and Contingent Liabilities | ||
Face amount of asset | $ 10,420 | $ 16,260 |
Loan commitments | ||
Commitments and Contingent Liabilities | ||
Face amount of asset | $ 432,660 | $ 394,750 |
Commitments and Contingent Li_3
Commitments and Contingent Liabilities - Other (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Commitments and Contingent Liabilities | |||||
Provision for indemnifications | $ (200,000) | $ 11,000 | $ (435,000) | $ (858,000) | |
Indemnification reserve for recourse provisions | |||||
Commitments and Contingent Liabilities | |||||
Provision for indemnifications | 200,000 | 11,000 | 435,000 | 858,000 | |
Indemnification payments paid | 0 | $ 0 | 0 | $ 0 | |
Loss Contingency Accrual | $ 1,960,000 | $ 1,960,000 | $ 2,390,000 | ||
C&F Mortgage | |||||
Commitments and Contingent Liabilities | |||||
Recourse period for early payment default, minimum | 90 days | ||||
Recourse period for early payment default, maximum | 1 year |
Derivative Financial Instrume_3
Derivative Financial Instruments (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Derivatives and other information | ||
Changes in fair value of loan swaps | $ 0 | |
Unpaid principal on mortgage loans held for sale | $ 823 | |
Other assets | ||
Derivatives and other information | ||
Cash collateral | 0 | 0 |
Interest rate swaps on loans | Cash flow hedges | ||
Derivatives and other information | ||
Notional amount | 25,000 | 25,000 |
Derivative Asset | 2,073 | 1,941 |
Matched interest rate swap with borrower | Not designated as hedges | ||
Derivatives and other information | ||
Notional amount | 109,976 | 85,856 |
Derivative Liability | 7,132 | 6,328 |
Matched interest rate swap with counterparty | Not designated as hedges | ||
Derivatives and other information | ||
Notional amount | 109,976 | 85,856 |
Derivative Asset | 7,132 | 6,328 |
IRLC | Not designated as hedges | ||
Derivatives and other information | ||
Notional amount | 40,909 | 42,284 |
Derivative Asset | 563 | 391 |
Mortgage Banking | Best-efforts forward sales contracts | ||
Derivatives and other information | ||
IRLCs | 40,910 | 42,280 |
Unpaid principal on mortgage loans held for sale | 27,750 | 16,410 |
Mortgage loans | $ 68,660 | $ 58,690 |
Other Noninterest Expenses (Det
Other Noninterest Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Other Noninterest Expenses | ||||
Data processing fees | $ 2,567 | $ 2,675 | $ 7,863 | $ 7,921 |
Professional fees | 707 | 684 | 2,096 | 2,179 |
Insurance expense | 414 | 293 | 1,203 | 767 |
Marketing and advertising expenses | 361 | 441 | 1,172 | 1,415 |
Telecommunication expenses | 344 | 350 | 970 | 1,047 |
Mortgage banking loan processing expenses | 272 | 404 | 854 | 1,405 |
Provision for indemnifications | (200) | 11 | (435) | (858) |
All other noninterest expenses | 2,002 | 1,847 | 5,685 | 5,316 |
Total other noninterest expenses | $ 6,467 | $ 6,705 | $ 19,408 | $ 19,192 |