C&F Financial (CFFI) 10-Q 8 May 17 2017 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2017	May 05, 2017
Document and Entity Information
Entity Registrant Name	C & F FINANCIAL CORP
Document Type	10-Q
Amendment Flag	false
Entity Central Index Key	913,341
Entity Filer Category	Accelerated Filer
Entity Current Reporting Status	Yes
Document Period End Date	Mar. 31, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Entity Common Stock, Shares Outstanding		3,487,143
Current Fiscal Year End Date	--12-31

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Assets
Cash and due from banks	$ 11,971	$ 12,892
Interest-bearing deposits in other banks	108,567	90,309
Total cash and cash equivalents	120,538	103,201
Securities—available for sale at fair value, amortized cost of $210,642 and $207,893, respectively	213,079	210,026
Loans held for sale, at fair value	41,277	52,027
Loans, net of allowance for loan losses of $36,734 and $37,066, respectively	964,093	960,162
Restricted stocks, at cost	3,443	3,403
Corporate premises and equipment, net	35,695	35,804
Other real estate owned, net of valuation allowance of $57 and $86, respectively	376	195
Accrued interest receivable	6,765	7,261
Goodwill	14,425	14,425
Core deposit and other amortizable intangibles, net	2,079	2,269
Bank-owned life insurance	15,201	15,103
Other assets	47,493	48,116
Total assets	1,464,464	1,451,992
Deposits
Noninterest-bearing demand deposits	236,686	218,655
Savings and interest-bearing demand deposits	550,168	556,851
Time deposits	345,670	344,415
Total deposits	1,132,524	1,119,921
Short-term borrowings	13,561	12,363
Long-term borrowings	127,029	127,029
Trust preferred capital notes	25,183	25,175
Accrued interest payable	708	703
Other liabilities	24,073	27,587
Total liabilities	1,323,078	1,312,778
Commitments and contingent liabilities
Shareholders’ equity
Common stock ($1.00 par value, 8,000,000 shares authorized, 3,485,867 and 3,472,561 shares issued and outstanding, respectively, includes 141,170 and 141,755 of unvested shares, respectively)	3,345	3,331
Additional paid-in capital	12,029	11,705
Retained earnings	126,743	125,162
Accumulated other comprehensive loss, net	(731)	(984)
Total shareholders’ equity	141,386	139,214
Total liabilities and shareholders’ equity	$ 1,464,464	$ 1,451,992

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Parenthetical information
Available-for-sale securities, amortized cost	$ 210,642	$ 207,893
Loans, net of allowance for loan losses	36,734	37,066
Other real estate owned, net of valuation allowance	$ 57	$ 86
Common stock par value (in dollars per share)	$ 1	$ 1
Common stock, shares authorized	8,000,000	8,000,000
Common stock, shares issued	3,485,867	3,472,561
Common stock, shares outstanding	3,485,867	3,472,561
Common
Parenthetical information
Common stock, nonvested shares	141,170	141,755

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Interest income
Interest and fees on loans	$ 20,368	$ 20,206
Interest on interest-bearing deposits and federal funds sold	209	177
Interest and dividends on securities
U.S. government agencies and corporations	78	101
Mortgage-backed securities	338	334
Tax-exempt obligations of states and political subdivisions	863	981
Taxable obligations of states and political subdivisions	52	46
Corporate bonds and other	113	120
Total interest income	22,021	21,965
Interest expense
Savings and interest-bearing deposits	287	292
Time deposits	848	809
Borrowings	852	878
Trust preferred capital notes	283	283
Total interest expense	2,270	2,262
Net interest income	19,751	19,703
Provision for loan losses	4,400	4,600
Net interest income after provision for loan losses	15,351	15,103
Noninterest income
Gains on sales of loans	1,943	1,730
Service charges on deposit accounts	1,069	963
Other service charges and fees	2,046	1,684
Net gains on calls and sales of available for sale securities	1	1
Wealth management services income	378	276
Other	709	509
Total noninterest income	6,146	5,163
Noninterest expenses
Salaries and employee benefits	10,669	10,171
Occupancy	2,621	2,334
Other	4,555	4,585
Total noninterest expenses	17,845	17,090
Income before income taxes	3,652	3,176
Income tax expense	921	692
Net income	$ 2,731	$ 2,484
Net income per share - basic (in dollars per share)	$ 0.78	$ 0.72
Net income – assuming dilution (in Dollars per share)	$ 0.78	$ 0.72
Weighted average number of shares - basic (in shares)	3,483,007	3,448,630
Weighted average number of shares - assuming dilution (in shares)	3,483,323	3,449,739

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2017	Mar. 31, 2016
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income		$ 2,731	$ 2,484
Changes in defined benefit plan assets and benefit obligations
Changes in net loss arising during the period	[1]	38	38
Tax effect		(13)	(13)
Amortization of prior service cost arising during the period	[1]	(15)	(15)
Tax effect		5	5
Net of tax amount		15	15
Unrealized gains (losses) on cash flow hedging instruments
Unrealized holding gains (losses) arising during the period		65	(538)
Tax effect		(25)	188
Net of tax amount		40	(350)
Unrealized holding gains (losses) on securities
Unrealized holding gains arising during the period		306	1,684
Tax effect		(107)	(589)
Reclassification adjustment for gains included in net income	[2]	(1)	(1)
Net of tax amount		198	1,094
Other comprehensive income		253	759
Comprehensive income		$ 2,984	$ 3,243
[1]	These items are included in the computation of net periodic benefit cost, which is a component of “Salaries and employee benefits” on the consolidated statements of income. See “Note 6: Employee Benefit Plans,” for additional information.
[2]	Gains are included in “Net gains on calls and sales of available for sale securities" on the consolidated statements of income.

Consolidated Statements' of Sha

Consolidated Statements' of Shareholders Equity - USD ($) $ in Thousands	Common Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Income	Total
Balance, beginning of the period at Dec. 31, 2015	$ 3,301	$ 10,420	$ 116,167	$ 1,171	$ 131,059
Comprehensive income:
Net income			2,484		2,484
Other comprehensive income				759	759
Share-based compensation		305			305
Restricted stock vested	7	(7)
Common stock issued	1	36			37
Common stock purchased	(4)	(132)			(136)
Cash dividends declared – common stock			(1,104)		(1,104)
Balance, end of period at Mar. 31, 2016	3,305	10,622	117,547	1,930	133,404
Balance, beginning of the period at Dec. 31, 2016	3,331	11,705	125,162	(984)	139,214
Comprehensive income:
Net income			2,731		2,731
Other comprehensive income				253	253
Stock options exercised	2	81			83
Share-based compensation		403			403
Restricted stock vested	15	(15)
Common stock issued	1	36			37
Common stock purchased	(4)	(181)			(185)
Cash dividends declared – common stock			(1,150)		(1,150)
Balance, end of period at Mar. 31, 2017	$ 3,345	$ 12,029	$ 126,743	$ (731)	$ 141,386

Consolidated Statements' of Sh7

Consolidated Statements' of Shareholders Equity (Parentheticals) - $ / shares	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
Cash dividends paid per share	$ 0.33	$ 0.32

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Operating activities:
Net income	$ 2,731	$ 2,484
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	654	621
Provision for loan losses	4,400	4,600
Provision for indemnifications	36	52
Share-based compensation	403	305
Net accretion of certain acquisition-related fair value adjustments	(325)	(312)
Net amortization of discounts and amortization of premiums on securities	407	423
Realized gains on sales and calls of securities	(1)	(1)
Net realized losses (gains) on sales of other real estate owned	2	(18)
Net realized gains on sale of corporate premises and equipment		(46)
Income from bank-owned life insurance	(84)	(86)
Origination of loans held for sale	(141,097)	(103,972)
Proceeds from sales of loans held for sale	153,790	124,276
Gains on sales of loans held for sale	(1,943)	(1,730)
Change in other assets and liabilities:
Accrued interest receivable	496	122
Other assets	532	(777)
Accrued interest payable	5	27
Other liabilities	(3,485)	(857)
Net cash provided by operating activities	16,521	25,111
Investing activities:
Proceeds from maturities, calls and sales of securities available for sale and payments on mortgage-backed securities	11,368	12,222
Purchases of securities available for sale	(14,523)	(7,649)
Net redemptions of restricted stocks	(40)	(58)
Net increase in loans	(8,031)	(27,674)
Proceeds from sales of other real estate owned	25	160
Purchases of corporate premises and equipment, net	(569)	(558)
Net cash used in investing activities	(11,770)	(23,557)
Financing activities:
Net increase in demand, interest-bearing demand and savings deposits	11,348	4,590
Net increase (decrease) in time deposits	1,255	(3,135)
Net increase (decrease) in borrowings	1,198	(3,555)
Issuance of common stock	37	37
Purchase of common stock, including shares withheld to pay taxes	(185)	(136)
Proceeds from exercise of stock options	83
Cash dividends	(1,150)	(1,104)
Net cash provided by (used in) financing activities	12,586	(3,303)
Net increase (decrease) in cash and cash equivalents	17,337	(1,749)
Cash and cash equivalents at beginning of period	103,201	152,943
Cash and cash equivalents at end of period	120,538	151,194
Supplemental disclosure
Interest paid	2,256	2,226
Income taxes paid	14	13
Supplemental disclosure of noncash investing and financing activities
Unrealized gains on securities available for sale	306	1,684
Transfers from loans to other real estate owned	208	394
Pension adjustment	23	23
Unrealized gains (losses) on cash flow hedging instruments	$ 65	$ (538)

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2017
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	NOTE (Unaudited) NOTE 1: Summary of Significant Accounting Policies Principles of Consolidation: The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) for interim financial reporting and with applicable quarterly reporting regulations of the Securities and Exchange Commission (the SEC). They do not include all of the information and notes required by U.S. GAAP for complete financial statements. Therefore, these consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the C&F Financial Corporation Annual Report on Form 10-K for the year ended December 31, 2016. The unaudited consolidated financial statements include the accounts of C&F Financial Corporation (the Corporation) and its wholly owned subsidiary, Citizens and Farmers Bank (the Bank or C&F Bank). All significant intercompany accounts and transactions have been eliminated in consolidation. In addition, the Corporation owns 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 a liability of the Corporation. The accounting and reporting policies of C&F Financial Corporation and Subsidiary conform to U.S. GAAP and to predominant practices within the banking industry. Nature of Operations: The Corporation is a bank holding company incorporated under the laws of the Commonwealth of Virginia. The Corporation owns all of the stock of its subsidiary, C&F Bank, which is an independent commercial bank chartered under the laws of the Commonwealth of Virginia. C&F Bank has five wholly-owned subsidiaries: C&F Mortgage Corporation and Subsidiary (C&F Mortgage), C&F Finance Company (C&F Finance), C&F Wealth Management Corporation (C&F Wealth Management), C&F Insurance Services, Inc. and CVB Title Services, Inc., all incorporated under the laws of the Commonwealth of Virginia. C&F Mortgage, organized in September 1995, was formed to originate and sell residential mortgages and through its subsidiary, Certified Appraisals LLC, provides ancillary mortgage loan production services for residential appraisals. C&F Finance, acquired on September 1, 2002, is a finance company purchasing automobile 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 an alliance with an independent broker/dealer. C&F Insurance Services, Inc., organized in July 1999, owns an equity interest in an insurance agency that sells insurance products to customers of C&F Bank, C&F Mortgage and other financial institutions that have an equity interest in the agency. CVB Title Services, Inc. was organized for the primary purpose of owning membership interests in two insurance-related limited liability companies. Business segment data is presented in Note 8. Basis of Presentation: The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the allowance for indemnifications, impairment of loans, impairment of securities, the valuation of other real estate owned, the projected benefit obligation under the defined benefit pension plan, the valuation of deferred taxes, fair value measurements and goodwill impairment. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, which are necessary for a fair presentation of the results of operations in these financial statements, have been made. Reclassification: Certain reclassifications have been made to the prior period financial statements to conform to the current period presentation. None of these reclassifications are considered material. Adoption of New Accounting Standard: During the fourth quarter of 2016, the Corporation adopted Accounting Standards Update (ASU) 2016-09 “ Compensation-Stock Compensation (Topic 718): Improvements to Employer Share-Based Payment Accounting ” . This ASU simplifies several aspects of the accounting for share-based payment award transactions, one of which is the recognition of excess tax benefits and deficiencies related to share-based payments, including tax benefits of dividends on share-based payment awards. Prior to the adoption of ASU 2016-09, such tax consequences were recognized as components of additional paid-in capital. With the adoption of this ASU, tax benefits and deficiencies are recognized within income tax expense. In accordance with the adoption provisions of ASU 2016-09, the results for the first quarter of 2016 include only the excess tax benefits attributable to the first quarter of 2016 in the amount of $60,000. Derivative Financial Instruments: The Corporation recognizes derivative financial instruments at fair value as either an other asset or other liability in the consolidated balance sheet. The Corporation’s derivative financial instruments may include (1) interest rate lock commitments (IRLCs) on mortgage loans that will be sold in the secondary market on a best efforts basis and the related forward commitments to sell mortgage loans, (2) interest rate swaps with certain qualifying commercial loan customers and dealer counterparties and (3) interest rate swaps that qualify as cash flow hedges on the Corporation’s trust preferred capital notes. Because the IRLCs, forward sales commitments and interest rate swaps with loan customers and dealer counterparties are not designated as hedging instruments, adjustments to reflect unrealized gains and losses resulting from changes in fair value of these instruments are reported as noninterest income or noninterest expense, as applicable. The effective portion of the gain or loss on the Corporation’s cash flow hedges is reported as a component of other comprehensive income, net of deferred income taxes, and reclassified into earnings in the same period(s) during which the hedged transactions affect earnings. The Corporation’s derivative financial instruments are described more fully in Note 10. Share-Based Compensation: Shared-based compensation expense, net of forfeitures, for the first quarter of 2017 was $403,000 ($250,000 after tax) for restricted stock granted during 2012 through 2017. As of March 31, 2017, there was $3.20 million of total unrecognized compensation expense related to unvested restricted stock that will be recognized over the remaining requisite service periods. A summary of activity for restricted stock awards during the first three months of 2017 and 2016 is presented below: 2017 Weighted- Average Grant Date Shares Fair Value Unvested, December 31, 2016 141,755 $ 39.77 Granted 15,275 45.40 Vested (14,950) 34.73 Forfeited (910) 41.58 Unvested, March 31, 2017 141,170 $ 40.90 2016 Weighted- Average Grant Date Shares Fair Value Unvested, December 31, 2015 137,200 $ 36.50 Granted 16,150 38.16 Vested (7,350) 23.20 Forfeited (300) 41.78 Unvested, March 31, 2016 145,700 $ 37.34 Stock option activity during the three months ended March 31, 2017 and stock options outstanding at March 31, 2017 and 2016 are summarized below. There was no stock option activity during the three months ended March 31, 2016. Intrinsic Value of Unexercised Remaining In-The Contractual Money Exercise Life Options Shares Price* (in years)* (in 000’s) Options outstanding and exercisable at December 31, 2016 2,250 $ 37.17 0.3 $ 29 Exercised (2,250) 37.17 Options outstanding and exercisable at March 31, 2017 — $ — — $ — Options outstanding and exercisable at March 31, 2016 24,000 $ 38.39 0.6 $ 12 * Weighted average Recent Significant Accounting Pronouncements: In January 2016, the Financial Accounting Standards Board (FASB) issued ASU 2016-01, “ Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities .” The amendments in ASU 2016-01 require, among other things, equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income; public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; and separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (i.e., securities or loans and receivables). It also eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost. The amendments in this ASU are effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Corporation is currently assessing the effect that ASU 2016-01 will have on its financial statements. In February 2016, the FASB issued ASU 2016-02, “ Leases (Topic 842) .” Among other things, in the amendments in ASU 2016-02, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: (1) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (2) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. Certain targeted improvements were made to align, where necessary, lessor accounting with the lessee accounting model and Topic 606, Revenue from Contracts with Customers. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted upon issuance. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. The Corporation is currently assessing the effect that ASU 2016-02 will have on its financial statements. In March 2016, the FASB issued ASU 2016-05, “Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships.” The amendments in this ASU clarify that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument does not, in and of itself, require dedesignation of that hedging relationship provided that all other hedge accounting criteria remain intact. The amendments became effective for public business entities for financial statements issued for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. The adoption of ASU 2016-05 did not have a material effect on the Corporation’s financial statements. In June 2016, the FASB issued ASU 2016-13, “ Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” , as part of its project on financial instruments. ASU 2016-13 introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments. It also modifies the impairment model for available-for-sale debt securities and provides for a simplified accounting model for purchased financial assets with credit deterioration since their origination. For public business entities that are SEC filers, the new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption will be permitted for all organizations for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Corporation is currently assessing the effect that ASU 2016-13 may have on its financial statements. In August 2016, the FASB issued ASU 2016-15, “ Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments ”, to address diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The amendments should be applied using a retrospective transition method to each period presented. If retrospective application is impractical for some of the issues addressed by the update, the amendments for those issues would be applied prospectively as of the earliest date practicable. Early adoption is permitted, including adoption in an interim period. The Corporation is currently assessing the effect that ASU 2016-15 may have on its financial statements. In October 2016, the FASB issued ASU 2016-16, “ Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other than Inventory ”, to eliminate the recognition exception for intra-entity asset transfers other than inventory so that an entity’s consolidated financial statements reflect the current and deferred tax consequences of those intra-entity transfers when they occur. ASU 2016-16 is effective for public business entities for annual reporting periods beginning after December 15, 2017 and interim reporting periods within those fiscal years. An entity may elect early adoption, but it must do so for the first interim period of an annual period if it issues interim financial statements. The amendments must be applied on a modified retrospective basis through a cumulative-effect adjustment, including the effect of any resultant valuation allowance, to retained earnings as of the beginning of the period of adoption. The Corporation is currently assessing the effect that ASU 2016-16 may have on its financial statements. In January 2017, the FASB issued ASU 2017-04, “ Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment ”, which removes the requirement to compare the implied fair value of goodwill with its carrying amount as part of step 2 of the goodwill impairment test. As a result, under ASU 2017-04, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. ASU 2017-04 is effective for public business entities that are SEC filers for annual and interim periods beginning after December 15, 2019. Early adoption is permitted. The Corporation is currently assessing the effect that ASU 2017-04 may have on its financial statements. In March 2017, the FASB issued ASU 2017-07, “ Compensation – Retirement Benefits (Topic 715) ”, which requires an employer to disaggregate the service cost component from the other components of net benefit cost. ASU 2017-07 provides explicit guidance on how to present the service cost component and the other components of net benefit cost in the income statement and allow only the service cost component of net benefit cost to be eligible for capitalization. ASU 2017-07 is effective for public business entities for annual periods beginning after December 15, 2017, including interim periods within those annual periods. Early adoption is permitted. The Corporation is currently assessing the effect that ASU 2017-07 may have on its financial statements. In March 2017, the FASB issued ASU 2017-08, “ Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20) ”, which requires all entities that hold investments in callable debt securities at a premium to amortize the premium to the earliest call date. ASU 2017-08 does not require an accounting change for securities held at a discount. ASU 2017-08 is effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted. The Corporation is currently assessing the effect that ASU 2017-08 may have on its financial statements. Other accounting standards that have been issued by the FASB or other standards-setting bodies are not expected to have a material effect on the Corporation’s financial position, results of operations or cash flows.

Securities

Securities	3 Months Ended
	Mar. 31, 2017
Securities
Securities	NOTE 2: Securities The Corporation’s debt and equity securities, all of which are classified as available for sale, at March 31, 2017 and December 31, 2016 are summarized as follows: March 31, 2017 Gross Gross Amortized Unrealized Unrealized (Dollars in thousands) Cost Gains Losses Fair Value U.S. government agencies and corporations $ 17,017 $ 1 $ (346) $ 16,672 Mortgage-backed securities 82,914 203 (524) 82,593 Obligations of states and political subdivisions 110,711 3,328 (225) 113,814 $ 210,642 $ 3,532 $ (1,095) $ 213,079 December 31, 2016 Gross Gross Amortized Unrealized Unrealized (Dollars in thousands) Cost Gains Losses Fair Value U.S. government agencies and corporations $ 16,526 $ — $ (414) $ 16,112 Mortgage-backed securities 77,210 228 (622) 76,816 Obligations of states and political subdivisions 114,157 3,265 (324) 117,098 $ 207,893 $ 3,493 $ (1,360) $ 210,026 The amortized cost and estimated fair value of securities at March 31, 2017, by the earlier of contractual maturity or expected maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to prepay obligations with or without call or prepayment penalties. March 31, 2017 Amortized (Dollars in thousands) Cost Fair Value Due in one year or less $ 29,291 $ 29,397 Due after one year through five years 155,909 157,621 Due after five years through ten years 17,207 17,359 Due after ten years 8,235 8,702 $ 210,642 $ 213,079 Proceeds from maturities, calls and sales, and payments on available for sale securities for the three months ended March 31, 2017 and 2016 were $11.37 million and $12.22 million, respectively. Gross realized gains of $1,000 were recognized in each of the three months ended March 31, 2017 and 2016. The Corporation pledges securities to primarily secure public deposits and repurchase agreements. Securities with an aggregate amortized cost of $106.36 million and an aggregate fair value of $107.49 million were pledged at March 31, 2017. Securities with an aggregate amortized cost of $113.07 million and an aggregate fair value of $114.16. million were pledged at December 31, 2016. Securities in an unrealized loss position at March 31, 2017, by duration of the period of the unrealized loss, are shown below. Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Loss Value Loss Value Loss U.S. government agencies and corporations $ 16,169 $ 346 $ — $ — $ 16,169 $ 346 Mortgage-backed securities 56,137 523 616 1 56,753 524 Obligations of states and political subdivisions 14,137 180 2,207 45 16,344 225 Total temporarily impaired securities $ 86,443 $ 1,049 $ 2,823 $ 46 $ 89,266 $ 1,095 There were 132 debt securities totaling $89.27 million considered temporarily impaired at March 31, 2017. The primary cause of the temporary impairments in the Corporation's investments in debt securities was fluctuations in interest rates. At March 31, 2017, approximately 97 percent of the Corporation's obligations of states and political subdivisions, as measured by market value, were rated “A” or better by Standard & Poor's or Moody's Investors Service. Of those in a net unrealized loss position, approximately 97 percent were rated “A” or better, as measured by market value, at March 31, 2017. The Corporation considers all of its debt securities to meet regulatory credit quality standards, meaning that the securities have low risk of default by the obligor, and the full and timely repayment of principal and interest is expected over the expected life of the investment. Because the Corporation intends to hold these investments in debt securities to maturity and it is more likely than not that the Corporation will not be required to sell these investments before a recovery of unrealized losses, the Corporation does not consider these investments to be other-than-temporarily impaired at March 31, 2017 and no other-than-temporary impairment has been recognized. Securities in an unrealized loss position at December 31, 2016, by duration of the period of the unrealized loss, are shown below. Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Loss Value Loss Value Loss U.S. government agencies and corporations $ 16,111 $ 414 $ — $ — $ 16,111 $ 414 Mortgage-backed securities 54,227 621 671 1 54,898 622 Obligations of states and political subdivisions 21,835 283 1,891 41 23,726 324 Total temporarily impaired securities $ 92,173 $ 1,318 $ 2,562 $ 42 $ 94,735 $ 1,360 The Corporation’s investment in restricted stocks totaled $3.44 million at March 31, 2017 and consisted of both Federal Home Loan Bank (FHLB) stock and Community Bankers Bank (CBB) stock. Restricted stocks are generally viewed as long-term investments, which are carried at cost because there is no market for the stock other than the FHLBs with respect to FHLB stock, or member institutions with respect to CBB stock. Therefore, when evaluating restricted stock for impairment, their respective values are based on the ultimate recoverability of the par value rather than by recognizing temporary declines in value. The Corporation does not consider its investment in restricted stocks to be other-than-temporarily impaired at March 31, 2017 and no impairment has been recognized. Total restricted stocks is shown as a separate line item on the balance sheet and is not a part of the available for sale securities portfolio.

Loans

Loans	3 Months Ended
	Mar. 31, 2017
Loans
Loans	NOTE 3: Loans Major classifications of loans are summarized as follows: March 31, December 31, (Dollars in thousands) 2017 2016 Real estate – residential mortgage $ 189,769 $ 188,264 Real estate – construction 1 50,693 55,732 Commercial, financial and agricultural 2 399,853 390,388 Equity lines 51,147 52,600 Consumer 11,004 8,399 Consumer finance 298,361 301,845 1,000,827 997,228 Less allowance for loan losses (36,734) (37,066) Loans, net $ 964,093 $ 960,162 1 Includes the Corporation's real estate construction lending and consumer real estate lot lending. 2 Includes the Corporation’s commercial real estate lending, land acquisition and development lending, builder line lending and commercial business lending. Consumer loans included $209,000 and $284,000 of demand deposit overdrafts at March 31, 2017 and December 31, 2016, respectively. The outstanding principal balance and the carrying amount of loans acquired pursuant to the Corporation's acquisition of Central Virginia Bank (CVB) on October 1, 2013 (or acquired loans) that were recorded at fair value at the acquisition date and are included in the consolidated balance sheet at March 31, 2017 and December 31, 2016 were as follows: March 31, 2017 December 31, 2016 Acquired Loans - Acquired Loans - Acquired Loans - Acquired Loans - Purchased Purchased Acquired Loans - Purchased Purchased Acquired Loans - (Dollars in thousands) Credit Impaired Performing Total Credit Impaired Performing Total Outstanding principal balance $ 17,530 $ 53,748 $ 71,278 $ 19,770 $ 56,213 $ 75,983 Carrying amount Real estate – residential mortgage $ 1,207 $ 13,192 $ 14,399 $ 1,219 $ 13,422 $ 14,641 Commercial, financial and agricultural 1 5,922 27,333 33,255 7,759 28,615 36,374 Equity lines 280 10,398 10,678 278 11,178 11,456 Consumer — 101 101 — 114 114 Total acquired loans $ 7,409 $ 51,024 $ 58,433 $ 9,256 $ 53,329 $ 62,585 1 Includes acquired loans classified by the Corporation as commercial real estate lending, land acquisition and development lending, builder line lending and commercial business lending. Loans on nonaccrual status were as follows: March 31, December 31, (Dollars in thousands) 2017 2016 Real estate – residential mortgage $ 1,019 $ 1,652 Real estate – construction — — Commercial, financial and agricultural: Commercial real estate lending 6,882 1,619 Commercial business lending 129 131 Equity lines 712 757 Consumer 2 118 Consumer finance 384 565 Total loans on nonaccrual status $ 9,128 $ 4,842 The past due status of loans as of March 31, 2017 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 2 Real estate – residential mortgage $ 1,279 $ 95 $ 319 $ 1,693 $ 1,207 $ 186,869 $ 189,769 $ 194 Real estate – construction: Construction lending — — — — — 42,390 42,390 — Consumer lot lending — — — — — 8,303 8,303 — Commercial, financial and agricultural: Commercial real estate lending 65 1,916 455 2,436 5,922 268,165 276,523 455 Land acquisition and development lending — — 270 270 — 38,172 38,442 270 Builder line lending — — 367 367 — 25,749 26,116 367 Commercial business lending 15 — — 15 — 58,757 58,772 — Equity lines 444 — 120 564 280 50,303 51,147 120 Consumer 22 — 2 24 — 10,980 11,004 — Consumer finance 7,774 780 384 8,938 — 289,423 298,361 — Total $ 9,599 $ 2,791 $ 1,917 $ 14,307 $ 7,409 $ 979,111 $ 1,000,827 $ 1,406 1 For the purposes of the table above, “Current” includes loans that are 1-29 days past due. 2 Includes purchased credit impaired (PCI) loans of $194,000. The table above includes the following: · nonaccrual loans that are current of $6.30 million, 30-59 days past due of $379,000, 60-89 days past due of $1.94 million and 90+ days past due of $510,000. · performing loans purchased in the acquisition of CVB that are current of $48.74 million, 30-59 days past due of $389,000, and 60-89 days past due of $1.89 million. The past due status of loans as of December 31, 2016 was as follows: 90+ Days 30 - 59 Days 60 - 89 Days 90+ Days Total Past Due and (Dollars in thousands) Past Due Past Due Past Due Past Due PCI Current 1 Total Loans Accruing Real estate – residential mortgage $ 848 $ 233 $ 184 $ 1,265 $ 1,219 $ 185,780 $ 188,264 $ — Real estate – construction: Construction lending — — — — — 47,062 47,062 — Consumer lot lending — — — — — 8,670 8,670 — Commercial, financial and agricultural: Commercial real estate lending 5,121 12 — 5,133 7,245 249,408 261,786 — Land acquisition and development lending — — — — — 43,472 43,472 — Builder line lending — — — — — 22,391 22,391 — Commercial business lending 75 — — 75 514 62,150 62,739 — Equity lines 853 138 — 991 278 51,331 52,600 — Consumer 22 — 118 140 — 8,259 8,399 6 Consumer finance 13,011 1,975 565 15,551 — 286,294 301,845 — Total $ 19,930 $ 2,358 $ 867 $ 23,155 $ 9,256 $ 964,817 $ 997,228 $ 6 1 For the purposes of the table above, “Current” includes loans that are 1-29 days past due. The table above includes the following: · nonaccrual loans that are current of $3.04 million, 30-59 days past due of $570,000, 60‑89 days past due of $370,000 and 90+ days past due of $867,000. · performing loans purchased in the acquisition of CVB that are current of $52.64 million, 30-59 days past due of $532,000, 60-89 days past due of $143,000 and 90+ days past due of $17,000. Loan modifications that were classified as troubled debt restructurings (TDRs) during the three months ended March 31, 2017 and 2016 were as follows: Three Months Ended March 31, 2017 2016 Pre- Post- Pre- Post- Modification Modification Modification Modification Number of Recorded Recorded Number of Recorded Recorded (Dollars in thousands) Loans Investment Investment Loans Investment Investment Real estate – residential mortgage – interest rate concession — $ — $ — 1 $ 57 $ 57 Commercial, financial and agricultural: Commercial real estate lending – interest rate and term concession 3 4,646 4,646 — — — Commercial real estate lending – interest rate concession 1 12 12 — — — Commercial business lending – interest rate concession — — — 1 100 100 Consumer – interest rate concession — — — 1 291 291 Total 4 $ 4,658 $ 4,658 3 $ 448 $ 448 A TDR payment default occurs when, within 12 months of the original TDR modification, either a full or partial charge-off occurs or a TDR becomes 90 days or more past due. There were no TDR payment defaults during the three months ended March 31, 2017 and 2016. Impaired loans, which included TDR loans of $10.10 million, and the related allowance at March 31, 2017 were as follows: Recorded Recorded Investment Investment Average Unpaid in Loans in Loans Balance- Interest Principal without with Related Impaired Income (Dollars in thousands) Balance Specific Reserve Specific Reserve Allowance Loans Recognized Real estate – residential mortgage $ 3,597 $ 1,935 $ 1,615 $ 313 $ 3,561 $ 46 Commercial, financial and agricultural: Commercial real estate lending 8,021 489 7,430 855 7,979 19 Commercial business lending 133 63 66 38 134 1 Equity lines 32 — 30 30 32 — Consumer 321 — 322 6 321 3 Total $ 12,104 $ 2,487 $ 9,463 $ 1,242 $ 12,027 $ 69 Impaired loans, which consisted solely of TDRs, and the related allowance at December 31, 2016 were as follows: Recorded Recorded Investment Investment Average Unpaid in Loans in Loans Balance- Interest Principal without with Related Impaired Income (Dollars in thousands) Balance Specific Reserve Specific Reserve Allowance Loans Recognized Real estate – residential mortgage $ 3,539 $ 1,676 $ 1,732 $ 251 $ 3,446 $ 122 Commercial, financial and agricultural: Commercial real estate lending 1,967 430 1,272 261 1,746 29 Commercial business lending 167 89 74 46 181 8 Equity lines 32 32 — — 32 1 Consumer 520 — 520 94 521 8 Total $ 6,225 $ 2,227 $ 3,598 $ 652 $ 5,926 $ 168 PCI loans had an unpaid principal balance of $17.53 million and a carrying value of $7.41 million at March 31, 2017. Determining the fair value of purchased credit impaired loans required the Corporation to estimate cash flows expected to result from those loans and to discount those cash flows at appropriate rates of interest. For such loans, the excess of the cash flows expected at acquisition over the estimated fair value is recognized as interest income over the remaining lives of the loans and is called the accretable yield. The difference between contractually required payments at acquisition and the cash flows expected to be collected at acquisition reflects the effect of estimated credit losses and is called the nonaccretable difference, and is not recorded. In accordance with U.S. GAAP, there was no carry-over of the previously established allowance for loan losses for acquired loans. The following table presents a summary of the change in the accretable yield of the PCI loan portfolio for the three months ended March 31, 2017 and 2016: March 31, (Dollars in thousands) 2017 2016 Accretable yield, balance at beginning of period $ 8,637 $ 10,419 Accretion (683) (462) Reclassification of nonaccretable difference due to improvement in expected cash flows 328 441 Other changes, net (566) (263) Accretable yield, balance at end of period $ 7,716 $ 10,135

Allowance for Loan Losses

Allowance for Loan Losses	3 Months Ended
	Mar. 31, 2017
Allowance for Loan Losses
Allowance for Loan Losses	NOTE 4: Allowance for Loan Losses The following table presents the changes in the allowance for loan losses by major classification during the three months ended March 31, 2017: 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, 2016 $ 2,559 $ 816 $ 7,393 $ 685 $ 261 $ 25,352 $ 37,066 Provision charged (credited) to operations (33) (75) 259 27 (78) 4,300 4,400 Loans charged off (5) — (153) — (62) (5,678) (5,898) Recoveries of loans previously charged off 14 — 7 — 41 1,104 1,166 Balance at March 31, 2017 $ 2,535 $ 741 $ 7,506 $ 712 $ 162 $ 25,078 $ 36,734 The following table presents the changes in the allowance for loan losses by major classification during the three months ended March 31, 2016: 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, 2015 $ 2,471 $ 94 $ 7,755 $ 1,052 $ 243 $ 23,954 $ 35,569 Provision charged (credited) to operations (10) 192 (226) 91 (47) 4,600 4,600 Loans charged off — — (35) (55) (71) (5,601) (5,762) Recoveries of loans previously charged off 26 — 160 — 127 1,118 1,431 Balance at March 31, 2016 $ 2,487 $ 286 $ 7,654 $ 1,088 $ 252 $ 24,071 $ 35,838 The following table presents, as of March 31, 2017, the total 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 for loan losses: Balance at March 31, 2017 $ 2,535 $ 741 $ 7,506 $ 712 $ 162 $ 25,078 $ 36,734 Ending balance: individually evaluated for impairment $ 313 $ — $ 893 $ 30 $ 6 $ — $ 1,242 Ending balance: collectively evaluated for impairment $ 2,222 $ 741 $ 6,613 $ 682 $ 156 $ 25,078 $ 35,492 Ending balance: acquired loans - PCI $ — $ — $ — $ — $ — $ — $ — Loans: Balance at March 31, 2017 $ 189,769 $ 50,693 $ 399,853 $ 51,147 $ 11,004 $ 298,361 $ 1,000,827 Ending balance: individually evaluated for impairment $ 3,550 $ — $ 8,048 $ 30 $ 322 $ — $ 11,950 Ending balance: collectively evaluated for impairment $ 185,012 $ 50,693 $ 385,883 $ 50,837 $ 10,682 $ 298,361 $ 981,468 Ending balance: acquired loans - PCI $ 1,207 $ — $ 5,922 $ 280 $ — $ — $ 7,409 The following table presents, as of December 31, 2016, the total 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 for loan losses: Balance at December 31, 2016 $ 2,559 $ 816 $ 7,393 $ 685 $ 261 $ 25,352 $ 37,066 Ending balance: individually evaluated for impairment $ 251 $ — $ 307 $ — $ 94 $ — $ 652 Ending balance: collectively evaluated for impairment $ 2,308 $ 816 $ 7,086 $ 685 $ 167 $ 25,352 $ 36,414 Ending balance: acquired loans - PCI $ — $ — $ — $ — $ — $ — $ — Loans: Balance at December 31, 2016 $ 188,264 $ 55,732 $ 390,388 $ 52,600 $ 8,399 $ 301,845 $ 997,228 Ending balance: individually evaluated for impairment $ 3,408 $ — $ 1,865 $ 32 $ 520 $ — $ 5,825 Ending balance: collectively evaluated for impairment $ 183,637 $ 55,732 $ 380,764 $ 52,290 $ 7,879 $ 301,845 $ 982,147 Ending balance: acquired loans - PCI $ 1,219 $ — $ 7,759 $ 278 $ — $ — $ 9,256 Loans by credit quality indicators as of March 31, 2017 were as follows: Special Substandard (Dollars in thousands) Pass Mention Substandard Nonaccrual Total 1 Real estate – residential mortgage $ 183,451 $ 1,925 $ 3,374 $ 1,019 $ 189,769 Real estate – construction: Construction lending 42,390 — — — 42,390 Consumer lot lending 8,303 — — — 8,303 Commercial, financial and agricultural: Commercial real estate lending 262,419 3,479 3,743 6,882 276,523 Land acquisition and development lending 24,947 — 13,495 — 38,442 Builder line lending 25,749 — 367 — 26,116 Commercial business lending 58,016 224 403 129 58,772 Equity lines 49,729 528 178 712 51,147 Consumer 10,671 — 331 2 11,004 $ 665,675 $ 6,156 $ 21,891 $ 8,744 $ 702,466 1 At March 31, 2017, the Corporation did not have any loans classified as Doubtful or Loss. Included in the table above are loans purchased in connection with the acquisition of CVB of $51.25 million pass rated, $2.22 million special mention, $2.89 million substandard and $2.08 million substandard nonaccrual. Non- (Dollars in thousands) Performing Performing Total Consumer finance $ 297,977 $ 384 $ 298,361 Loans by credit quality indicators as of December 31, 2016 were as follows: Special Substandard (Dollars in thousands) Pass Mention Substandard Nonaccrual Total 1 Real estate – residential mortgage $ 181,814 $ 2,037 $ 2,761 $ 1,652 $ 188,264 Real estate – construction: Construction lending 47,062 — — — 47,062 Consumer lot lending 8,670 — — — 8,670 Commercial, financial and agricultural: Commercial real estate lending 243,427 5,860 10,880 1,619 261,786 Land acquisition and development lending 29,595 565 13,312 — 43,472 Builder line lending 21,235 789 367 — 22,391 Commercial business lending 62,044 255 309 131 62,739 Equity lines 51,186 480 177 757 52,600 Consumer 7,870 2 409 118 8,399 $ 652,903 $ 9,988 $ 28,215 $ 4,277 $ 695,383 1 At December 31, 2016, the Corporation did not have any loans classified as Doubtful or Loss. Included in the table above are loans purchased in connection with the acquisition of CVB of $54.06 million pass rated, $2.59 million special mention, $5.74 million substandard and $196,000 substandard nonaccrual. Non- (Dollars in thousands) Performing Performing Total Consumer finance $ 301,280 $ 565 $ 301,845

Shareholders' Equity and Earnin

Shareholders' Equity and Earnings Per Common Share	3 Months Ended
	Mar. 31, 2017
Shareholders’ Equity and Earnings Per Common Share
Shareholders' Equity and Earnings Per Common Share	NOTE 5: Shareholders’ Equity and Earnings Per Common Share Accumulated Other Comprehensive Income (Loss) The following table presents the cumulative balances of the components of accumulated other comprehensive income, net of deferred taxes of $393,000 and $534,000 as of March 31, 2017 and December 31, 2016, respectively. March 31, December 31, (Dollars in thousands) 2017 2016 Net unrealized gains on securities $ 1,584 $ 1,386 Net unrecognized gains (losses) on cash flow hedges 6 (34) Net unrecognized losses on defined benefit plan (2,321) (2,336) Total accumulated other comprehensive loss $ (731) $ (984) Common Shares The Corporation purchased 4,049 and 3,525 shares of its common stock from employees to satisfy tax withholding obligations arising upon the vesting of restricted shares during the first three months of 2017 and 2016, respectively. During the first three months of 2017 and 2016, no shares were purchased under the share repurchase program authorized by the Corporation’s Board of Directors. Earnings Per Common Share (EPS) The components of the Corporation’s EPS calculations are as follows: Three Months Ended March 31, (Dollars in thousands) 2017 2016 Net income $ 2,731 $ 2,484 Weighted average number of common shares used in earnings per common share—basic 3,483,007 3,448,630 Effect of dilutive securities: Stock option awards 316 1,109 Weighted average number of common shares used in earnings per common share—assuming dilution 3,483,323 3,449,739 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. Accordingly, the weighted average number of common shares used in the calculation of basic and diluted EPS includes both vested and unvested common shares outstanding. Potential common shares that may be issued by the Corporation for its stock option awards are determined using the treasury stock method. Accordingly, anti-dilutive shares are not included in computing diluted earnings per share. No shares issuable upon exercise of options were anti-dilutive for the three months ended March 31, 2017; whereas, 12,000 shares issuable upon exercise of options were anti-dilutive for the three months ended March 31, 2016.

Employee Benefit Plans

Employee Benefit Plans	3 Months Ended
	Mar. 31, 2017
Employee Benefit Plans
Employee Benefit Plans	NOTE 6: Employee Benefit Plans The Bank has a non-contributory cash balance pension plan for which the components of net periodic benefit cost are as follows: Three Months Ended March 31, (Dollars in thousands) 2017 2016 Components of net periodic benefit cost: Service cost $ 282 $ 262 Interest cost 138 130 Expected return on plan assets (287) (261) Amortization of prior service cost (15) (15) Recognized net actuarial loss 38 38 Net periodic benefit cost $ 156 $ 154

Fair Value of Assets and Liabil

Fair Value of Assets and Liabilities	3 Months Ended
	Mar. 31, 2017
Fair Value of Assets and Liabilities
Fair Value of Assets and Liabilities	NOTE 7: 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 and equity securities traded in an active exchange market, as well as U.S. Treasury securities. · Level 2—Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. · Level 3—Valuation is determined using model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect the Corporation's estimates of assumptions that market participants would use in pricing the respective asset or liability. Valuation techniques may include the use of pricing models, discounted cash flow models and similar techniques. U.S. GAAP allows an entity the irrevocable option to elect fair value (the fair value option) for the initial and subsequent measurement for certain financial assets and liabilities on a contract-by-contract basis. The Corporation has elected to use fair value accounting for its entire portfolio of loans held for sale (LHFS). Assets and Liabilities Measured at Fair Value on a Recurring Basis The following describes the valuation techniques and inputs used by the Corporation in determining the fair value of certain assets recorded at fair value on a recurring basis in the financial statements. Securities available for sale. The Corporation primarily values its investment portfolio using Level 2 fair value measurements, but may also use Level 1 or Level 3 measurements if required by the composition of the portfolio. At March 31, 2017 and December 31, 2016, the Corporation's entire investment securities portfolio was comprised of securities available for sale, which were valued using Level 2 fair value measurements. The Corporation has contracted with third party portfolio accounting service vendors for valuation of its securities portfolio. The vendors’ sources for security valuation are Standard & Poor's Securities Evaluations Inc. (SPSE), Thomson Reuters Pricing Service (TRPS), and Interactive Data Pricing and Reference Data LLC (IDC). Each source provides opinions, known as evaluated prices, as to the value of individual securities based on model-based pricing techniques that are partially based on available market data, including prices for similar instruments in active markets and prices for identical assets in markets that are not active. SPSE and IDC provide evaluated prices for the Corporation's obligations of states and political subdivisions category of securities. Both sources use proprietary pricing models and pricing systems, mathematical tools and judgment to determine an evaluated price for a security based upon a hierarchy of market information regarding that security or securities with similar characteristics. TRPS and IDC provide evaluated prices for the Corporation's U.S. government agencies and corporations and mortgage-backed categories of securities. Fixed-rate callable securities of the U.S. government agencies and corporations category are individually evaluated on an option adjusted spread basis for callable issues or on a nominal spread basis incorporating the term structure of agency market spreads and the appropriate risk free benchmark curve for non-callable issues. Fixed-rate securities issued by the Small Business Association in the U.S. government agencies and corporations category are individually evaluated based upon a hierarchy of security specific information and market data regarding that security or securities with similar characteristics. Pass-through mortgage-backed securities (MBS) in the mortgage-backed category are grouped into aggregate categories defined by issuer program, weighted average coupon, and weighted average maturity. Each aggregate is benchmarked to a relative mortgage-backed to-be-announced (TBA) or other benchmark price. TBA prices are obtained from market makers and live trading systems. Collateralized mortgage obligations in the mortgage-backed category are individually evaluated based upon a hierarchy of security specific information and market data regarding that security or securities with similar characteristics. Each evaluation is determined using an option adjusted spread and prepayment model based on volatility-driven, multi-dimensional spread tables. Loans held for sale. Fair value of the Corporation’s LHFS is based on observable market prices for similar instruments traded in the secondary mortgage loan markets in which the Corporation conducts business. The Corporation's portfolio of LHFS is classified as Level 2. Derivative asset (liability) - IRLCs. The Corporation recognizes IRLCs at fair value. Fair value of IRLCs is based on either (i) the price of the underlying loans obtained from an investor for loans that will be delivered on a best efforts basis or (ii) the observable price for individual loans traded in the secondary market for loans that will be delivered on a mandatory basis. All of the Corporation's IRLCs are classified as Level 2. Derivative asset (liability) – interest rate swaps on loans. As discussed in “Note 10: Derivative Financial Instruments”, the Corporation recognizes interest rate swaps at fair value on a recurring basis. The Corporation has contracted with a third party vendor to provide valuations for these interest rate swaps using standard valuation techniques and therefore classifies such interest rate swaps as Level 2. Derivative asset (liability) - cash flow hedges. The fair value of the Corporation’s cash flow hedges is determined using the discounted cash flow method. All of the Corporation’s cash flow hedges are classified as Level 2. The following table presents the balances of financial assets and liabilities measured at fair value on a recurring basis. March 31, 2017 Fair Value Measurements Using Assets/Liabilities at (Dollars in thousands) Level 1 Level 2 Level 3 Fair Value Assets: Securities available for sale U.S. government agencies and corporations $ — $ 16,672 $ — $ 16,672 Mortgage-backed securities — 82,593 — 82,593 Obligations of states and political subdivisions — 113,814 — 113,814 Total securities available for sale — 213,079 — 213,079 Loans held for sale — 41,277 — 41,277 Derivative asset - IRLC — 1,394 — 1,394 Derivative asset - interest rate swaps on loans — 1,061 — 1,061 Derivative asset - cash flow hedges — 21 — 21 Total assets $ — $ 256,832 $ — $ 256,832 Liabilities: Derivative liability - cash flow hedges $ — $ 11 $ — $ 11 Derivative liability - interest rate swaps on loans — 1,061 — 1,061 Total liabilities $ — $ 1,072 $ — $ 1,072 December 31, 2016 Fair Value Measurements Using Assets/Liabilities at (Dollars in thousands) Level 1 Level 2 Level 3 Fair Value Assets: Securities available for sale U.S. government agencies and corporations $ — $ 16,112 $ — $ 16,112 Mortgage-backed securities — 76,816 — 76,816 Obligations of states and political subdivisions — 117,098 — 117,098 Total securities available for sale — 210,026 — 210,026 Loans held for sale — 52,027 — 52,027 Derivative asset - IRLC — 663 — 663 Derivative asset - interest rate swaps on loans — 1,032 — 1,032 Total assets $ — $ 263,748 $ — $ 263,748 Liabilities: Derivative liability - cash flow hedges $ — $ 56 $ — $ 56 Derivative liability - interest rate swaps on loans — 1,032 — 1,032 Total liabilities $ — $ 1,088 $ — $ 1,088 Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis The Corporation may be required, from time to time, to measure and recognize certain assets at fair value on a nonrecurring basis in accordance with U. S. GAAP. The following describes the valuation techniques and inputs used by the Corporation in determining the fair value of certain assets recorded at fair value on a nonrecurring basis in the financial statements. Impaired loans. The Corporation does not record loans held for investment at fair value on a recurring basis. However, there are instances when a loan is considered impaired and an allowance for loan losses is established. A loan is considered impaired when it is probable that the Corporation will be unable to collect all interest and principal payments as scheduled in the loan agreement. All TDRs are considered impaired loans. The Corporation measures impairment on a loan-by-loan basis for commercial, construction and residential loans in excess of $500,000 by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. Additionally, management reviews current market conditions, borrower history, past experience with similar loans and economic conditions. Based on management’s review, additional write-downs to fair value may be incurred. The Corporation maintains a valuation allowance to the extent that the measure of the impaired loan is less than the recorded investment. When the fair value of an impaired loan is based solely on observable cash flows, market price or a current appraisal, the Corporation records the impaired loan as nonrecurring Level 2. However, if based on management’s review, additional write-downs to fair value are required or if the impaired loan otherwise does not meet the standards for Level 2 classification, the Corporation records the impaired loan as nonrecurring Level 3. The measurement of impaired loans of less than $500,000, with the exception of Commercial loan TDRs, is based on each loan’s future cash flows discounted at the loan’s effective interest rate rather than the market rate of interest, which is not a fair value measurement and is therefore excluded from fair value disclosure requirements. Other real estate owned (OREO). Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value less costs to sell at the date of foreclosure. Initial fair value is based upon appraisals the Corporation obtains from independent licensed appraisers. Subsequent to foreclosure, management periodically performs valuations of the foreclosed assets based on updated appraisals, general market conditions, recent sales of similar properties, length of time the properties have been held, and our ability and intent with regard to continued ownership of the properties. The Corporation may incur additional write-downs of foreclosed assets to fair value less costs to sell if valuations indicate a further deterioration in market conditions. As such, the Corporation records OREO as nonrecurring Level 3. The following table presents the balances of financial assets measured at fair value on a non-recurring basis. March 31, 2017 Fair Value Measurements Using Assets at Fair (Dollars in thousands) Level 1 Level 2 Level 3 Value Impaired loans, net $ — $ — $ 4,609 $ 4,609 Other real estate owned, net — — 376 376 Total $ — $ — $ 4,985 $ 4,985 December 31, 2016 Fair Value Measurements Using Assets at Fair (Dollars in thousands) Level 1 Level 2 Level 3 Value Impaired loans, net $ — $ — $ 2,303 $ 2,303 Other real estate owned, net — — 195 195 Total $ — $ — $ 2,498 $ 2,498 The following table presents quantitative information about Level 3 fair value measurements for financial assets measured at fair value on a non-recurring basis as of March 31, 2017: Fair Value Measurements at March 31, 2017 (Dollars in thousands) Fair Value Valuation Technique(s) Unobservable Inputs Range of Inputs Impaired loans, net $ 4,609 Appraisals Discount to reflect current market conditions and estimated selling costs 5% - 20% Other real estate owned, net 376 Appraisals Discount to reflect current market conditions and estimated selling costs 15% - 28% Total $ 4,985 Fair Value of Financial Instruments FASB ASC 825, Financial Instruments , requires disclosure about fair value of financial instruments, including those financial assets and financial liabilities that are not required to be measured and reported at fair value on a recurring or nonrecurring basis. ASC 825 excludes certain financial instruments and all nonfinancial instruments from its disclosure requirements. Accordingly, the aggregate fair value amounts presented may not necessarily represent the underlying fair value of the Corporation. The following describes the valuation techniques used by the Corporation to measure certain of its financial instruments at fair value as of March 31, 2017 and December 31, 2016. Cash and short-term investments. The nature of these instruments and their relatively short maturities provide for the reporting of fair value equal to the historical cost. Loans, net. The fair value of performing loans is estimated using a discounted expected future cash flows analysis based on current rates being offered on similar products in the market. An overall valuation adjustment is made for specific credit risks as well as general portfolio risks. Based on the valuation methodologies used in assessing the fair value of loans and the associated valuation allowance, these loans are considered Level 3. Loan totals, as listed in the table below, include impaired loans. For valuation techniques used in relation to impaired loans, see the “Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis” section in this Note 7. Loans held for sale, net. As described in the “Assets and Liabilities Measured at Fair Value on a Recurring Basis” section in this Note 7, the Corporation has elected to carry its portfolio of loans held for sale at fair value, measured on a recurring basis. Accrued interest receivable. The carrying amount of accrued interest receivable approximates fair value. Bank-owned life insurance (BOLI). The fair value of BOLI is estimated using information provided by insurance carriers. These policies are carried at their cash surrender value, which approximates the fair value. Deposits. The fair value of all demand deposit accounts is the amount payable at the report date. For all other deposits, the fair value is determined using the discounted cash flow method. The discount rate was equal to the rate currently offered on similar products in active markets (Level 2). Borrowings. The fair value of borrowings is determined using the discounted cash flow method. The discount rate was equal to the rate currently offered on similar products in active markets (Level 2). Accrued interest payable. The carrying amount of accrued interest payable approximates fair value. Letters of credit. The estimated fair value of letters of credit is based on estimated fees the Corporation would pay to have another entity assume its obligation under the outstanding arrangements. These fees are not considered material. Unused portions of lines of credit. The estimated fair value of unused portions of lines of credit is based on estimated fees the Corporation would pay to have another entity assume its obligation under the outstanding arrangements. These fees are not considered material. The following tables reflect the carrying amounts and estimated fair values of the Corporation’s financial instruments whether or not recognized on the balance sheet at fair value. Carrying Fair Value Measurements at March 31, 2017 Using Total Fair (Dollars in thousands) Value Level 1 Level 2 Level 3 Value Financial assets: Cash and short-term investments $ 120,538 $ 120,538 $ — $ — $ 120,538 Securities available for sale 213,079 — 213,079 — 213,079 Loans, net 964,093 — — 963,494 963,494 Loans held for sale 41,277 — 41,277 — 41,277 Derivative asset - IRLC 1,394 — 1,394 — 1,394 Derivative asset - interest rate swaps on loans 1,061 — 1,061 — 1,061 Derivative asset - cash flow hedges 21 — 21 — 21 Bank-owned life insurance 15,201 — 15,201 — 15,201 Accrued interest receivable 6,765 6,765 — — 6,765 Financial liabilities: Demand deposits $ 786,854 $ 786,854 $ — $ — $ 786,854 Time deposits 345,670 — 348,053 — 348,053 Borrowings 165,773 — 158,321 — 158,321 Derivative liability - cash flow hedges 11 — 11 — 11 Derivative liability - interest rate swaps on loans 1,061 — 1,061 — 1,061 Accrued interest payable 708 708 — — 708 Carrying Fair Value Measurements at December 31, 2016 Using Total Fair (Dollars in thousands) Value Level 1 Level 2 Level 3 Value Financial assets: Cash and short-term investments $ 103,201 $ 103,201 $ — $ — $ 103,201 Securities available for sale 210,026 — 210,026 — 210,026 Loans, net 960,162 — — 961,546 961,546 Loans held for sale 52,027 — 52,027 — 52,027 Derivative asset - IRLC 663 — 663 — 663 Derivative asset - interest rate swaps on loans 1,032 — 1,032 — 1,032 Bank-owned life insurance 15,103 — 15,103 — 15,103 Accrued interest receivable 7,261 7,261 — — 7,261 Financial liabilities: Demand deposits $ 775,506 $ 775,506 $ — $ — $ 775,506 Time deposits 344,415 — 346,648 — 346,648 Borrowings 164,567 — 157,138 — 157,138 Derivative liability - cash flow hedges 56 — 56 — 56 Derivative liability - interest rate swaps on loans 1,032 — 1,032 — 1,032 Accrued interest payable 703 703 — — 703 The Corporation assumes interest rate risk (the risk that general interest rate levels will change) in the normal course of operations. As a result, the fair values of the Corporation’s financial instruments will change when interest rate levels change and that change may be either favorable or unfavorable to the Corporation. Management attempts to match maturities of assets and liabilities to the extent believed necessary to balance minimizing interest rate risk and increasing net interest income in current market conditions. However, borrowers with fixed rate obligations are less likely to prepay in a rising rate environment and more likely to prepay in a falling rate environment. Conversely, depositors who are receiving fixed rates are more likely to withdraw funds before maturity in a rising rate environment and less likely to do so in a falling rate environment. Management monitors interest rates, maturities and repricing dates of assets and liabilities and attempts to manage interest rate risk by adjusting terms of new loans, deposits and borrowings and by investing in securities with terms that mitigate the Corporation’s overall interest rate risk.

Business Segments

Business Segments	3 Months Ended
	Mar. 31, 2017
Business Segments
Business Segments	NOTE 8: Business Segments The Corporation operates in a decentralized fashion in three principal business segments: Retail Banking, Mortgage Banking and Consumer Finance. Revenues from Retail Banking operations consist primarily of interest earned on loans and investment securities and service charges on deposit accounts. Mortgage Banking operating revenues consist principally of gains on sales of loans in the secondary market, loan origination fee income and interest earned on mortgage loans held for sale. Revenues from Consumer Finance consist primarily of interest earned on purchased automobile retail installment sales contracts. The Corporation’s other segment includes a full-service brokerage firm that derives revenues from offering wealth management services and insurance products through an alliance with an independent broker/dealer and an insurance company that derives revenues from owning an equity interest in an insurance agency that offers insurance products and services. The results of the other segment are not significant to the Corporation as a whole and have been included in “Other.” Revenue and expenses of the Corporation are also included in “Other,” and consist primarily of interest expense associated with the Corporation’s trust preferred capital notes and other general corporate expenses. Three Months Ended March 31, 2017 Retail Mortgage Consumer (Dollars in thousands) Banking Banking Finance Other Eliminations Consolidated Revenues: Interest income $ 11,972 $ 316 $ 11,206 $ — $ (1,473) $ 22,021 Gains on sales of loans — 1,943 — — — 1,943 Other noninterest income 2,500 1,087 232 384 — 4,203 Total operating income 14,472 3,346 11,438 384 (1,473) 28,167 Expenses: Provision for loan losses 100 — 4,300 — — 4,400 Interest expense 1,465 88 1,907 283 (1,473) 2,270 Salaries and employee benefits 6,235 1,483 2,412 539 — 10,669 Other noninterest expenses 4,443 1,279 1,253 201 — 7,176 Total operating expenses 12,243 2,850 9,872 1,023 (1,473) 24,515 Income (loss) before income taxes 2,229 496 1,566 (639) — 3,652 Income tax expense (benefit) 407 199 624 (309) — 921 Net income (loss) $ 1,822 $ 297 $ 942 $ (330) $ — $ 2,731 Total assets $ $ 56,178 $ 301,506 $ 5,873 $ (204,810) $ 1,464,464 Goodwill $ 3,702 $ — $ 10,723 $ — $ — $ 14,425 Capital expenditures $ 379 $ 194 $ 13 $ 11 $ — $ 597 Three Months Ended March 31, 2016 Retail Mortgage Consumer (Dollars in thousands) Banking Banking Finance Other Eliminations Consolidated Revenues: Interest income $ 11,083 $ 310 $ 11,811 $ 1 $ (1,240) $ 21,965 Gains on sales of loans — 1,730 — — — 1,730 Other noninterest income 2,162 743 232 296 — 3,433 Total operating income 13,245 2,783 12,043 297 (1,240) 27,128 Expenses: Provision for loan losses — — 4,600 — — 4,600 Interest expense 1,454 62 1,703 283 (1,240) 2,262 Salaries and employee benefits 6,008 1,184 2,627 352 — 10,171 Other noninterest expenses 4,432 1,001 1,328 158 — 6,919 Total operating expenses 11,894 2,247 10,258 793 (1,240) 23,952 Income (loss) before income taxes 1,351 536 1,785 (496) — 3,176 Income tax expense (benefit) 22 214 703 (247) — 692 Net income (loss) $ 1,329 $ 322 $ 1,082 $ (249) $ — $ 2,484 Total assets $ 1,237,374 $ 39,924 $ 292,075 $ 5,186 $ (169,735) $ 1,404,824 Goodwill $ 3,702 $ — $ 10,723 $ — $ — $ 14,425 Capital expenditures $ 297 $ 169 $ 147 $ — $ — $ 613 The Retail Banking segment extends a warehouse line of credit to the Mortgage Banking segment, providing a portion of the funds needed to originate mortgage loans. The Retail Banking segment charges the Mortgage Banking segment interest at the daily FHLB advance rate plus 50 basis points. The Retail Banking segment also provides the Consumer Finance segment with a portion of the funds needed to purchase loan contracts by means of variable rate notes that carry interest at one-month LIBOR plus 200 basis points and fixed rate notes that carry interest rates ranging from 3.8 percent to 8.0 percent. The Retail Banking segment acquires certain residential real estate loans from the Mortgage Banking segment at prices similar to those paid by third-party investors. These transactions are eliminated to reach consolidated totals. Certain corporate overhead costs incurred by the Retail Banking segment are not allocated to the Mortgage Banking, Consumer Finance and Other segments.

Commitments and Financial Instr

Commitments and Financial Instruments with Off-Balance-Sheet Risk	3 Months Ended
	Mar. 31, 2017
Commitments and Financial Instruments with Off-Balance-Sheet Risk
Commitments and Financial Instruments with Off-Balance-Sheet Risk	NOTE 9: Commitments and Financial Instruments with Off-Balance-Sheet Risk C&F Mortgage sells substantially all of the residential mortgage loans it originates to third-party counterparties (i.e., investors). As is customary in the industry, the agreements with these counterparties require C&F Mortgage to extend representations and warranties with respect to program compliance, borrower misrepresentation, fraud, and early payment performance. Under the agreements, the counterparties are entitled to make loss claims and repurchase requests of C&F Mortgage for loans that contain covered deficiencies. C&F Mortgage has obtained early payment default recourse waivers for a significant portion of its business. Recourse periods for early payment default for the remaining counterparties vary from 90 days up to one year. Recourse periods for borrower misrepresentation or fraud or underwriting error do not have a stated time limit. C&F Mortgage maintains an indemnification reserve for potential claims made under these recourse provisions. C&F Mortgage has adopted a reserve methodology whereby provisions are made to an expense account to fund a reserve maintained as a liability account on the balance sheet for potential losses. The loan performance data of sold loans is not made available to C&F Mortgage by the counterparties making the evaluation of potential losses inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. A schedule of expected losses on loans with claims or indemnifications is maintained to ensure the reserve is adequate to cover estimated losses. Often times, claims are not factually validated and they are rescinded. Once claims are validated and the actual or potential loss is agreed upon with the counterparties, the reserve is charged and a cash payment is made to settle the claim. The following table presents the changes in the allowance for indemnification losses for the periods presented: Three Months Ended March 31, (Dollars in thousands) 2017 2016 Allowance, beginning of period $ 2,303 $ 2,363 Provision for indemnification losses 36 52 Payments — — Allowance, end of period $ 2,339 $ 2,415

Derivative Financial Instrument

Derivative Financial Instruments	3 Months Ended
	Mar. 31, 2017
Derivative Financial Instruments
Derivative Financial Instruments	NOTE 10: Derivative Financial Instruments The Corporation uses derivative financial instruments (or derivatives) 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 derivatives as hedging instruments in a qualifying hedge accounting relationship (cash flow or fair value hedge). The remaining derivatives are classified as free standing derivatives consisting of customer accommodation loan swaps (or loan swaps) and interest rate lock commitments. Cash flow hedges . The Corporation designates derivatives as cash flow hedges when they are used to manage exposure to variability in cash flows on variable rate borrowings such as the Corporation’s trust preferred capital notes. The Corporation uses interest rate swap agreements as part of its hedging strategy by exchanging variable-rate interest payments on a notional amount equal to the principal amount of the borrowings for fixed-rate interest payments, with such interest rates set based on benchmarked interest rates. 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. The terms and conditions of the interest rate swaps vary and amounts receivable or payable are recognized as accrued under the terms of the agreements. The Corporation assesses the effectiveness of each hedging relationship on a periodic basis. In accordance with ASC 815, Derivatives and Hedging , the effective portions of the derivatives’ unrealized gains or losses are recorded as a component of other comprehensive income. Based on the Corporation’s assessment its cash flow hedges are highly effective, but to the extent that any ineffectiveness exists in the hedge relationships, the amounts would be recorded in interest income and interest expense in the Corporation’s consolidated statements of income. Loan swaps . The Bank also enters into interest rate swaps with certain qualifying commercial loan customers to meet their interest rate risk management needs. The Bank simultaneously enters into interest rate swaps with dealer counterparties, with identical notional amounts and terms. The net result of these interest rate swaps is that the customer pays a fixed rate of interest and the Corporation receives a floating rate. These back-to-back loan swaps qualify as financial derivatives with fair values reported in “Other Assets” and “Other Liabilities”. Changes in fair value are recorded in other noninterest expense and net to zero because of the identical amounts and terms of the swaps. Interest rate lock commitments . C&F Mortgage enters into IRLCs with customers to originate loans for which the interest rates are determined prior to funding. C&F Mortgage then mitigates interest rate risk on these IRLCs and loans held for sale by (a) entering into forward loan sales contracts with investors for loans to be delivered on a best efforts basis or (b) entering into forward sales contracts of mortgage backed securities for loans to be delivered on a mandatory basis. At March 31, 2017, each loan held for sale by C&F Mortgage was subject to a forward sales agreement on a best efforts basis. The fair value of these derivative instruments is reported in “Other Assets. The following tables summarize key elements of the Corporation’s derivative instruments as of March 31, 2017 and December 31, 2016, segregated by derivatives that are considered to be hedging instruments and those that are not: March 31, 2017 Notional Collateral (Dollars in thousands) Amount 1 Positions Assets 2 Liabilities 2 Pledged 3 Cash flow hedges: Interest rate swaps: Pay variable rate swaps with counterparty $ 25,000 3 $ 21 $ 11 $ 324 Not designated as hedges: Customer-related interest rate contracts: Matched interest rate swaps with borrower 25,048 4 — 1,061 — Matched interest rate swaps with counterparty 25,048 4 1,061 — — Other contracts: Interest rate lock commitments 134,822 608 1,394 — — Total 184,918 616 2,455 1,061 — Total derivatives $ 209,918 619 $ 2,476 $ 1,072 $ 324 1 Notional amounts are not recorded on the balance sheet and are generally used only as a basis on which interest and other payments are determined. 2 Balances represent fair value of derivative financial instruments. 3 Collateral pledged may be comprised of cash or securities. December 31, 2016 Notional Collateral (Dollars in thousands) Amount 1 Positions Assets 2 Liabilities 2 Pledged 3 Cash flow hedges: Interest rate swaps: Pay variable rate swaps with counterparty $ 25,000 3 $ — $ 56 $ 323 Not designated as hedges: Customer-related interest rate contracts: Matched interest rate swaps with borrower 25,151 4 — 1,032 — Matched interest rate swaps with counterparty 25,151 4 1,032 — — Other contracts: Interest rate lock commitments 106,612 504 663 — — Total 156,914 512 1,695 1,032 — Total derivatives $ 181,914 515 $ 1,695 $ 1,088 $ 323 1 Notional amounts are not recorded on the balance sheet and are generally used only as a basis on which interest and other payments are determined. 2 Balances represent fair value of derivative financial instruments. 3 Collateral pledged may be comprised of cash or securities.

Other Noninterest Expenses

Other Noninterest Expenses	3 Months Ended
	Mar. 31, 2017
Other Noninterest Expenses
Other Noninterest Expenses	NOTE 11: Other Noninterest Expenses The following table presents the significant components in the statements of income line “Noninterest Expenses-Other.” Three Months Ended March 31, (Dollars in thousands) 2017 2016 Data processing expenses $ 858 $ 955 Professional fees 706 511 Marketing and advertising expenses 365 376 Travel and educational expenses 286 273 Telecommunication expenses 330 234 Amortization of core deposit intangible 150 206 All other noninterest expenses 1,860 2,030 Total other noninterest expenses $ 4,555 $ 4,585

Summary of Significant Accoun20

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2017
Summary of Significant Accounting Policies
Principles of Consolidation	Principles of Consolidation: The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) for interim financial reporting and with applicable quarterly reporting regulations of the Securities and Exchange Commission (the SEC). They do not include all of the information and notes required by U.S. GAAP for complete financial statements. Therefore, these consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the C&F Financial Corporation Annual Report on Form 10-K for the year ended December 31, 2016. The unaudited consolidated financial statements include the accounts of C&F Financial Corporation (the Corporation) and its wholly owned subsidiary, Citizens and Farmers Bank (the Bank or C&F Bank). All significant intercompany accounts and transactions have been eliminated in consolidation. In addition, the Corporation owns 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 a liability of the Corporation. The accounting and reporting policies of C&F Financial Corporation and Subsidiary conform to U.S. GAAP and to predominant practices within the banking industry.
Nature of Operations	Nature of Operations: The Corporation is a bank holding company incorporated under the laws of the Commonwealth of Virginia. The Corporation owns all of the stock of its subsidiary, C&F Bank, which is an independent commercial bank chartered under the laws of the Commonwealth of Virginia. C&F Bank has five wholly-owned subsidiaries: C&F Mortgage Corporation and Subsidiary (C&F Mortgage), C&F Finance Company (C&F Finance), C&F Wealth Management Corporation (C&F Wealth Management), C&F Insurance Services, Inc. and CVB Title Services, Inc., all incorporated under the laws of the Commonwealth of Virginia. C&F Mortgage, organized in September 1995, was formed to originate and sell residential mortgages and through its subsidiary, Certified Appraisals LLC, provides ancillary mortgage loan production services for residential appraisals. C&F Finance, acquired on September 1, 2002, is a finance company purchasing automobile 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 an alliance with an independent broker/dealer. C&F Insurance Services, Inc., organized in July 1999, owns an equity interest in an insurance agency that sells insurance products to customers of C&F Bank, C&F Mortgage and other financial institutions that have an equity interest in the agency. CVB Title Services, Inc. was organized for the primary purpose of owning membership interests in two insurance-related limited liability companies. Business segment data is presented in Note 8.
Basis of Presentation	Basis of Presentation: The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the allowance for indemnifications, impairment of loans, impairment of securities, the valuation of other real estate owned, the projected benefit obligation under the defined benefit pension plan, the valuation of deferred taxes, fair value measurements and goodwill impairment. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, which are necessary for a fair presentation of the results of operations in these financial statements, have been made.
Reclassification	Reclassification: Certain reclassifications have been made to the prior period financial statements to conform to the current period presentation. None of these reclassifications are considered material.
Adoption of New Accounting Standard	Adoption of New Accounting Standard: During the fourth quarter of 2016, the Corporation adopted Accounting Standards Update (ASU) 2016-09 “ Compensation-Stock Compensation (Topic 718): Improvements to Employer Share-Based Payment Accounting ” . This ASU simplifies several aspects of the accounting for share-based payment award transactions, one of which is the recognition of excess tax benefits and deficiencies related to share-based payments, including tax benefits of dividends on share-based payment awards. Prior to the adoption of ASU 2016-09, such tax consequences were recognized as components of additional paid-in capital. With the adoption of this ASU, tax benefits and deficiencies are recognized within income tax expense. In accordance with the adoption provisions of ASU 2016-09, the results for the first quarter of 2016 include only the excess tax benefits attributable to the first quarter of 2016 in the amount of $60,000.
Derivative Financial Instruments	Derivative Financial Instruments: The Corporation recognizes derivative financial instruments at fair value as either an other asset or other liability in the consolidated balance sheet. The Corporation’s derivative financial instruments may include (1) interest rate lock commitments (IRLCs) on mortgage loans that will be sold in the secondary market on a best efforts basis and the related forward commitments to sell mortgage loans, (2) interest rate swaps with certain qualifying commercial loan customers and dealer counterparties and (3) interest rate swaps that qualify as cash flow hedges on the Corporation’s trust preferred capital notes. Because the IRLCs, forward sales commitments and interest rate swaps with loan customers and dealer counterparties are not designated as hedging instruments, adjustments to reflect unrealized gains and losses resulting from changes in fair value of these instruments are reported as noninterest income or noninterest expense, as applicable. The effective portion of the gain or loss on the Corporation’s cash flow hedges is reported as a component of other comprehensive income, net of deferred income taxes, and reclassified into earnings in the same period(s) during which the hedged transactions affect earnings. The Corporation’s derivative financial instruments are described more fully in Note 10.
Share-Based Compensation	Share-Based Compensation: Shared-based compensation expense, net of forfeitures, for the first quarter of 2017 was $403,000 ($250,000 after tax) for restricted stock granted during 2012 through 2017. As of March 31, 2017, there was $3.20 million of total unrecognized compensation expense related to unvested restricted stock that will be recognized over the remaining requisite service periods. A summary of activity for restricted stock awards during the first three months of 2017 and 2016 is presented below: 2017 Weighted- Average Grant Date Shares Fair Value Unvested, December 31, 2016 141,755 $ 39.77 Granted 15,275 45.40 Vested (14,950) 34.73 Forfeited (910) 41.58 Unvested, March 31, 2017 141,170 $ 40.90 2016 Weighted- Average Grant Date Shares Fair Value Unvested, December 31, 2015 137,200 $ 36.50 Granted 16,150 38.16 Vested (7,350) 23.20 Forfeited (300) 41.78 Unvested, March 31, 2016 145,700 $ 37.34 Stock option activity during the three months ended March 31, 2017 and stock options outstanding at March 31, 2017 and 2016 are summarized below. There was no stock option activity during the three months ended March 31, 2016. Intrinsic Value of Unexercised Remaining In-The Contractual Money Exercise Life Options Shares Price* (in years)* (in 000’s) Options outstanding and exercisable at December 31, 2016 2,250 $ 37.17 0.3 $ 29 Exercised (2,250) 37.17 Options outstanding and exercisable at March 31, 2017 — $ — — $ — Options outstanding and exercisable at March 31, 2016 24,000 $ 38.39 0.6 $ 12 * Weighted average
Recent Significant Accounting Pronouncements	Recent Significant Accounting Pronouncements: In January 2016, the Financial Accounting Standards Board (FASB) issued ASU 2016-01, “ Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities .” The amendments in ASU 2016-01 require, among other things, equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income; public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; and separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (i.e., securities or loans and receivables). It also eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost. The amendments in this ASU are effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Corporation is currently assessing the effect that ASU 2016-01 will have on its financial statements. In February 2016, the FASB issued ASU 2016-02, “ Leases (Topic 842) .” Among other things, in the amendments in ASU 2016-02, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: (1) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (2) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. Certain targeted improvements were made to align, where necessary, lessor accounting with the lessee accounting model and Topic 606, Revenue from Contracts with Customers. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted upon issuance. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. The Corporation is currently assessing the effect that ASU 2016-02 will have on its financial statements. In March 2016, the FASB issued ASU 2016-05, “Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships.” The amendments in this ASU clarify that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument does not, in and of itself, require dedesignation of that hedging relationship provided that all other hedge accounting criteria remain intact. The amendments became effective for public business entities for financial statements issued for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. The adoption of ASU 2016-05 did not have a material effect on the Corporation’s financial statements. In June 2016, the FASB issued ASU 2016-13, “ Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” , as part of its project on financial instruments. ASU 2016-13 introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments. It also modifies the impairment model for available-for-sale debt securities and provides for a simplified accounting model for purchased financial assets with credit deterioration since their origination. For public business entities that are SEC filers, the new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption will be permitted for all organizations for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Corporation is currently assessing the effect that ASU 2016-13 may have on its financial statements. In August 2016, the FASB issued ASU 2016-15, “ Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments ”, to address diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The amendments should be applied using a retrospective transition method to each period presented. If retrospective application is impractical for some of the issues addressed by the update, the amendments for those issues would be applied prospectively as of the earliest date practicable. Early adoption is permitted, including adoption in an interim period. The Corporation is currently assessing the effect that ASU 2016-15 may have on its financial statements. In October 2016, the FASB issued ASU 2016-16, “ Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other than Inventory ”, to eliminate the recognition exception for intra-entity asset transfers other than inventory so that an entity’s consolidated financial statements reflect the current and deferred tax consequences of those intra-entity transfers when they occur. ASU 2016-16 is effective for public business entities for annual reporting periods beginning after December 15, 2017 and interim reporting periods within those fiscal years. An entity may elect early adoption, but it must do so for the first interim period of an annual period if it issues interim financial statements. The amendments must be applied on a modified retrospective basis through a cumulative-effect adjustment, including the effect of any resultant valuation allowance, to retained earnings as of the beginning of the period of adoption. The Corporation is currently assessing the effect that ASU 2016-16 may have on its financial statements. In January 2017, the FASB issued ASU 2017-04, “ Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment ”, which removes the requirement to compare the implied fair value of goodwill with its carrying amount as part of step 2 of the goodwill impairment test. As a result, under ASU 2017-04, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. ASU 2017-04 is effective for public business entities that are SEC filers for annual and interim periods beginning after December 15, 2019. Early adoption is permitted. The Corporation is currently assessing the effect that ASU 2017-04 may have on its financial statements. In March 2017, the FASB issued ASU 2017-07, “ Compensation – Retirement Benefits (Topic 715) ”, which requires an employer to disaggregate the service cost component from the other components of net benefit cost. ASU 2017-07 provides explicit guidance on how to present the service cost component and the other components of net benefit cost in the income statement and allow only the service cost component of net benefit cost to be eligible for capitalization. ASU 2017-07 is effective for public business entities for annual periods beginning after December 15, 2017, including interim periods within those annual periods. Early adoption is permitted. The Corporation is currently assessing the effect that ASU 2017-07 may have on its financial statements. In March 2017, the FASB issued ASU 2017-08, “ Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20) ”, which requires all entities that hold investments in callable debt securities at a premium to amortize the premium to the earliest call date. ASU 2017-08 does not require an accounting change for securities held at a discount. ASU 2017-08 is effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted. The Corporation is currently assessing the effect that ASU 2017-08 may have on its financial statements. Other accounting standards that have been issued by the FASB or other standards-setting bodies are not expected to have a material effect on the Corporation’s financial position, results of operations or cash flows.

Summary of Significant Accoun21

Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2017
Summary of Significant Accounting Policies
Summary of activity for restricted stock awards	2017 Weighted- Average Grant Date Shares Fair Value Unvested, December 31, 2016 141,755 $ 39.77 Granted 15,275 45.40 Vested (14,950) 34.73 Forfeited (910) 41.58 Unvested, March 31, 2017 141,170 $ 40.90 2016 Weighted- Average Grant Date Shares Fair Value Unvested, December 31, 2015 137,200 $ 36.50 Granted 16,150 38.16 Vested (7,350) 23.20 Forfeited (300) 41.78 Unvested, March 31, 2016 145,700 $ 37.34
Schedule of stock option transactions	Intrinsic Value of Unexercised Remaining In-The Contractual Money Exercise Life Options Shares Price* (in years)* (in 000’s) Options outstanding and exercisable at December 31, 2016 2,250 $ 37.17 0.3 $ 29 Exercised (2,250) 37.17 Options outstanding and exercisable at March 31, 2017 — $ — — $ — Options outstanding and exercisable at March 31, 2016 24,000 $ 38.39 0.6 $ 12 * Weighted average

Securities (Tables)

Securities (Tables)	3 Months Ended
	Mar. 31, 2017
Securities
Summary of available for sale securities	March 31, 2017 Gross Gross Amortized Unrealized Unrealized (Dollars in thousands) Cost Gains Losses Fair Value U.S. government agencies and corporations $ 17,017 $ 1 $ (346) $ 16,672 Mortgage-backed securities 82,914 203 (524) 82,593 Obligations of states and political subdivisions 110,711 3,328 (225) 113,814 $ 210,642 $ 3,532 $ (1,095) $ 213,079 December 31, 2016 Gross Gross Amortized Unrealized Unrealized (Dollars in thousands) Cost Gains Losses Fair Value U.S. government agencies and corporations $ 16,526 $ — $ (414) $ 16,112 Mortgage-backed securities 77,210 228 (622) 76,816 Obligations of states and political subdivisions 114,157 3,265 (324) 117,098 $ 207,893 $ 3,493 $ (1,360) $ 210,026
Schedule of amortized cost and estimated fair value of securities, by contractual maturity date	March 31, 2017 Amortized (Dollars in thousands) Cost Fair Value Due in one year or less $ 29,291 $ 29,397 Due after one year through five years 155,909 157,621 Due after five years through ten years 17,207 17,359 Due after ten years 8,235 8,702 $ 210,642 $ 213,079
Schedule of securities in an unrealized loss position	Securities in an unrealized loss position at March 31, 2017, by duration of the period of the unrealized loss, are shown below. Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Loss Value Loss Value Loss U.S. government agencies and corporations $ 16,169 $ 346 $ — $ — $ 16,169 $ 346 Mortgage-backed securities 56,137 523 616 1 56,753 524 Obligations of states and political subdivisions 14,137 180 2,207 45 16,344 225 Total temporarily impaired securities $ 86,443 $ 1,049 $ 2,823 $ 46 $ 89,266 $ 1,095 Securities in an unrealized loss position at December 31, 2016, by duration of the period of the unrealized loss, are shown below. Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Loss Value Loss Value Loss U.S. government agencies and corporations $ 16,111 $ 414 $ — $ — $ 16,111 $ 414 Mortgage-backed securities 54,227 621 671 1 54,898 622 Obligations of states and political subdivisions 21,835 283 1,891 41 23,726 324 Total temporarily impaired securities $ 92,173 $ 1,318 $ 2,562 $ 42 $ 94,735 $ 1,360

Loans (Tables)

Loans (Tables)	3 Months Ended
	Mar. 31, 2017
Loans
Summary of major classifications of loans	March 31, December 31, (Dollars in thousands) 2017 2016 Real estate – residential mortgage $ 189,769 $ 188,264 Real estate – construction 1 50,693 55,732 Commercial, financial and agricultural 2 399,853 390,388 Equity lines 51,147 52,600 Consumer 11,004 8,399 Consumer finance 298,361 301,845 1,000,827 997,228 Less allowance for loan losses (36,734) (37,066) Loans, net $ 964,093 $ 960,162 1 Includes the Corporation's real estate construction lending and consumer real estate lot lending. 2 Includes the Corporation’s commercial real estate lending, land acquisition and development lending, builder line lending and commercial business lending.
Schedule of acquired loans	March 31, 2017 December 31, 2016 Acquired Loans - Acquired Loans - Acquired Loans - Acquired Loans - Purchased Purchased Acquired Loans - Purchased Purchased Acquired Loans - (Dollars in thousands) Credit Impaired Performing Total Credit Impaired Performing Total Outstanding principal balance $ 17,530 $ 53,748 $ 71,278 $ 19,770 $ 56,213 $ 75,983 Carrying amount Real estate – residential mortgage $ 1,207 $ 13,192 $ 14,399 $ 1,219 $ 13,422 $ 14,641 Commercial, financial and agricultural 1 5,922 27,333 33,255 7,759 28,615 36,374 Equity lines 280 10,398 10,678 278 11,178 11,456 Consumer — 101 101 — 114 114 Total acquired loans $ 7,409 $ 51,024 $ 58,433 $ 9,256 $ 53,329 $ 62,585 1 Includes acquired loans classified by the Corporation as commercial real estate lending, land acquisition and development lending, builder line lending and commercial business lending.
Schedule of loans on nonaccrual status	March 31, December 31, (Dollars in thousands) 2017 2016 Real estate – residential mortgage $ 1,019 $ 1,652 Real estate – construction — — Commercial, financial and agricultural: Commercial real estate lending 6,882 1,619 Commercial business lending 129 131 Equity lines 712 757 Consumer 2 118 Consumer finance 384 565 Total loans on nonaccrual status $ 9,128 $ 4,842
Schedule of past due status of loans	The past due status of loans as of March 31, 2017 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 2 Real estate – residential mortgage $ 1,279 $ 95 $ 319 $ 1,693 $ 1,207 $ 186,869 $ 189,769 $ 194 Real estate – construction: Construction lending — — — — — 42,390 42,390 — Consumer lot lending — — — — — 8,303 8,303 — Commercial, financial and agricultural: Commercial real estate lending 65 1,916 455 2,436 5,922 268,165 276,523 455 Land acquisition and development lending — — 270 270 — 38,172 38,442 270 Builder line lending — — 367 367 — 25,749 26,116 367 Commercial business lending 15 — — 15 — 58,757 58,772 — Equity lines 444 — 120 564 280 50,303 51,147 120 Consumer 22 — 2 24 — 10,980 11,004 — Consumer finance 7,774 780 384 8,938 — 289,423 298,361 — Total $ 9,599 $ 2,791 $ 1,917 $ 14,307 $ 7,409 $ 979,111 $ 1,000,827 $ 1,406 1 For the purposes of the table above, “Current” includes loans that are 1-29 days past due. 2 Includes purchased credit impaired (PCI) loans of $194,000. The table above includes the following: · nonaccrual loans that are current of $6.30 million, 30-59 days past due of $379,000, 60-89 days past due of $1.94 million and 90+ days past due of $510,000. · performing loans purchased in the acquisition of CVB that are current of $48.74 million, 30-59 days past due of $389,000, and 60-89 days past due of $1.89 million. The past due status of loans as of December 31, 2016 was as follows: 90+ Days 30 - 59 Days 60 - 89 Days 90+ Days Total Past Due and (Dollars in thousands) Past Due Past Due Past Due Past Due PCI Current 1 Total Loans Accruing Real estate – residential mortgage $ 848 $ 233 $ 184 $ 1,265 $ 1,219 $ 185,780 $ 188,264 $ — Real estate – construction: Construction lending — — — — — 47,062 47,062 — Consumer lot lending — — — — — 8,670 8,670 — Commercial, financial and agricultural: Commercial real estate lending 5,121 12 — 5,133 7,245 249,408 261,786 — Land acquisition and development lending — — — — — 43,472 43,472 — Builder line lending — — — — — 22,391 22,391 — Commercial business lending 75 — — 75 514 62,150 62,739 — Equity lines 853 138 — 991 278 51,331 52,600 — Consumer 22 — 118 140 — 8,259 8,399 6 Consumer finance 13,011 1,975 565 15,551 — 286,294 301,845 — Total $ 19,930 $ 2,358 $ 867 $ 23,155 $ 9,256 $ 964,817 $ 997,228 $ 6 1 For the purposes of the table above, “Current” includes loans that are 1-29 days past due. The table above includes the following: · nonaccrual loans that are current of $3.04 million, 30-59 days past due of $570,000, 60‑89 days past due of $370,000 and 90+ days past due of $867,000. · performing loans purchased in the acquisition of CVB that are current of $52.64 million, 30-59 days past due of $532,000, 60-89 days past due of $143,000 and 90+ days past due of $17,000.
Schedule of loan modifications classified as TDRs	Three Months Ended March 31, 2017 2016 Pre- Post- Pre- Post- Modification Modification Modification Modification Number of Recorded Recorded Number of Recorded Recorded (Dollars in thousands) Loans Investment Investment Loans Investment Investment Real estate – residential mortgage – interest rate concession — $ — $ — 1 $ 57 $ 57 Commercial, financial and agricultural: Commercial real estate lending – interest rate and term concession 3 4,646 4,646 — — — Commercial real estate lending – interest rate concession 1 12 12 — — — Commercial business lending – interest rate concession — — — 1 100 100 Consumer – interest rate concession — — — 1 291 291 Total 4 $ 4,658 $ 4,658 3 $ 448 $ 448
Impaired financing receivables, including TDR loans	Impaired loans, which included TDR loans of $10.10 million, and the related allowance at March 31, 2017 were as follows: Recorded Recorded Investment Investment Average Unpaid in Loans in Loans Balance- Interest Principal without with Related Impaired Income (Dollars in thousands) Balance Specific Reserve Specific Reserve Allowance Loans Recognized Real estate – residential mortgage $ 3,597 $ 1,935 $ 1,615 $ 313 $ 3,561 $ 46 Commercial, financial and agricultural: Commercial real estate lending 8,021 489 7,430 855 7,979 19 Commercial business lending 133 63 66 38 134 1 Equity lines 32 — 30 30 32 — Consumer 321 — 322 6 321 3 Total $ 12,104 $ 2,487 $ 9,463 $ 1,242 $ 12,027 $ 69 Impaired loans, which consisted solely of TDRs, and the related allowance at December 31, 2016 were as follows: Recorded Recorded Investment Investment Average Unpaid in Loans in Loans Balance- Interest Principal without with Related Impaired Income (Dollars in thousands) Balance Specific Reserve Specific Reserve Allowance Loans Recognized Real estate – residential mortgage $ 3,539 $ 1,676 $ 1,732 $ 251 $ 3,446 $ 122 Commercial, financial and agricultural: Commercial real estate lending 1,967 430 1,272 261 1,746 29 Commercial business lending 167 89 74 46 181 8 Equity lines 32 32 — — 32 1 Consumer 520 — 520 94 521 8 Total $ 6,225 $ 2,227 $ 3,598 $ 652 $ 5,926 $ 168
Summary of change in the accretable yield of acquired loan portfolio	March 31, (Dollars in thousands) 2017 2016 Accretable yield, balance at beginning of period $ 8,637 $ 10,419 Accretion (683) (462) Reclassification of nonaccretable difference due to improvement in expected cash flows 328 441 Other changes, net (566) (263) Accretable yield, balance at end of period $ 7,716 $ 10,135

Allowance for Loan Losses (Tabl

Allowance for Loan Losses (Tables)	3 Months Ended
	Mar. 31, 2017
Allowance for Loan Losses
Schedule of changes in the allowance for loan losses	The following table presents the changes in the allowance for loan losses by major classification during the three months ended March 31, 2017: 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, 2016 $ 2,559 $ 816 $ 7,393 $ 685 $ 261 $ 25,352 $ 37,066 Provision charged (credited) to operations (33) (75) 259 27 (78) 4,300 4,400 Loans charged off (5) — (153) — (62) (5,678) (5,898) Recoveries of loans previously charged off 14 — 7 — 41 1,104 1,166 Balance at March 31, 2017 $ 2,535 $ 741 $ 7,506 $ 712 $ 162 $ 25,078 $ 36,734 The following table presents the changes in the allowance for loan losses by major classification during the three months ended March 31, 2016: 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, 2015 $ 2,471 $ 94 $ 7,755 $ 1,052 $ 243 $ 23,954 $ 35,569 Provision charged (credited) to operations (10) 192 (226) 91 (47) 4,600 4,600 Loans charged off — — (35) (55) (71) (5,601) (5,762) Recoveries of loans previously charged off 26 — 160 — 127 1,118 1,431 Balance at March 31, 2016 $ 2,487 $ 286 $ 7,654 $ 1,088 $ 252 $ 24,071 $ 35,838
Schedule of total allowance for loan losses, allowance by impairment methodology, and total loans and loans by impairment methodology	The following table presents, as of March 31, 2017, the total 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 for loan losses: Balance at March 31, 2017 $ 2,535 $ 741 $ 7,506 $ 712 $ 162 $ 25,078 $ 36,734 Ending balance: individually evaluated for impairment $ 313 $ — $ 893 $ 30 $ 6 $ — $ 1,242 Ending balance: collectively evaluated for impairment $ 2,222 $ 741 $ 6,613 $ 682 $ 156 $ 25,078 $ 35,492 Ending balance: acquired loans - PCI $ — $ — $ — $ — $ — $ — $ — Loans: Balance at March 31, 2017 $ 189,769 $ 50,693 $ 399,853 $ 51,147 $ 11,004 $ 298,361 $ 1,000,827 Ending balance: individually evaluated for impairment $ 3,550 $ — $ 8,048 $ 30 $ 322 $ — $ 11,950 Ending balance: collectively evaluated for impairment $ 185,012 $ 50,693 $ 385,883 $ 50,837 $ 10,682 $ 298,361 $ 981,468 Ending balance: acquired loans - PCI $ 1,207 $ — $ 5,922 $ 280 $ — $ — $ 7,409 The following table presents, as of December 31, 2016, the total 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 for loan losses: Balance at December 31, 2016 $ 2,559 $ 816 $ 7,393 $ 685 $ 261 $ 25,352 $ 37,066 Ending balance: individually evaluated for impairment $ 251 $ — $ 307 $ — $ 94 $ — $ 652 Ending balance: collectively evaluated for impairment $ 2,308 $ 816 $ 7,086 $ 685 $ 167 $ 25,352 $ 36,414 Ending balance: acquired loans - PCI $ — $ — $ — $ — $ — $ — $ — Loans: Balance at December 31, 2016 $ 188,264 $ 55,732 $ 390,388 $ 52,600 $ 8,399 $ 301,845 $ 997,228 Ending balance: individually evaluated for impairment $ 3,408 $ — $ 1,865 $ 32 $ 520 $ — $ 5,825 Ending balance: collectively evaluated for impairment $ 183,637 $ 55,732 $ 380,764 $ 52,290 $ 7,879 $ 301,845 $ 982,147 Ending balance: acquired loans - PCI $ 1,219 $ — $ 7,759 $ 278 $ — $ — $ 9,256
Schedule of loans by credit quality indicators	Loans by credit quality indicators as of March 31, 2017 were as follows: Special Substandard (Dollars in thousands) Pass Mention Substandard Nonaccrual Total 1 Real estate – residential mortgage $ 183,451 $ 1,925 $ 3,374 $ 1,019 $ 189,769 Real estate – construction: Construction lending 42,390 — — — 42,390 Consumer lot lending 8,303 — — — 8,303 Commercial, financial and agricultural: Commercial real estate lending 262,419 3,479 3,743 6,882 276,523 Land acquisition and development lending 24,947 — 13,495 — 38,442 Builder line lending 25,749 — 367 — 26,116 Commercial business lending 58,016 224 403 129 58,772 Equity lines 49,729 528 178 712 51,147 Consumer 10,671 — 331 2 11,004 $ 665,675 $ 6,156 $ 21,891 $ 8,744 $ 702,466 1 At March 31, 2017, the Corporation did not have any loans classified as Doubtful or Loss. Included in the table above are loans purchased in connection with the acquisition of CVB of $51.25 million pass rated, $2.22 million special mention, $2.89 million substandard and $2.08 million substandard nonaccrual. Non- (Dollars in thousands) Performing Performing Total Consumer finance $ 297,977 $ 384 $ 298,361 Loans by credit quality indicators as of December 31, 2016 were as follows: Special Substandard (Dollars in thousands) Pass Mention Substandard Nonaccrual Total 1 Real estate – residential mortgage $ 181,814 $ 2,037 $ 2,761 $ 1,652 $ 188,264 Real estate – construction: Construction lending 47,062 — — — 47,062 Consumer lot lending 8,670 — — — 8,670 Commercial, financial and agricultural: Commercial real estate lending 243,427 5,860 10,880 1,619 261,786 Land acquisition and development lending 29,595 565 13,312 — 43,472 Builder line lending 21,235 789 367 — 22,391 Commercial business lending 62,044 255 309 131 62,739 Equity lines 51,186 480 177 757 52,600 Consumer 7,870 2 409 118 8,399 $ 652,903 $ 9,988 $ 28,215 $ 4,277 $ 695,383 1 At December 31, 2016, the Corporation did not have any loans classified as Doubtful or Loss. Included in the table above are loans purchased in connection with the acquisition of CVB of $54.06 million pass rated, $2.59 million special mention, $5.74 million substandard and $196,000 substandard nonaccrual. Non- (Dollars in thousands) Performing Performing Total Consumer finance $ 301,280 $ 565 $ 301,845

Shareholders' Equity, and Earni

Shareholders' Equity, and Earnings Per Common Share (Tables)	3 Months Ended
	Mar. 31, 2017
Shareholders’ Equity and Earnings Per Common Share
Schedule of the components of accumulated other comprehensive income (loss), net of deferred taxes	March 31, December 31, (Dollars in thousands) 2017 2016 Net unrealized gains on securities $ 1,584 $ 1,386 Net unrecognized gains (losses) on cash flow hedges 6 (34) Net unrecognized losses on defined benefit plan (2,321) (2,336) Total accumulated other comprehensive loss $ (731) $ (984)
Schedule of components earnings per common share calculations	Three Months Ended March 31, (Dollars in thousands) 2017 2016 Net income $ 2,731 $ 2,484 Weighted average number of common shares used in earnings per common share—basic 3,483,007 3,448,630 Effect of dilutive securities: Stock option awards 316 1,109 Weighted average number of common shares used in earnings per common share—assuming dilution 3,483,323 3,449,739

Employee Benefit Plans (Tables)

Employee Benefit Plans (Tables)	3 Months Ended
	Mar. 31, 2017
Employee Benefit Plans
Schedule of net periodic benefit costs	Three Months Ended March 31, (Dollars in thousands) 2017 2016 Components of net periodic benefit cost: Service cost $ 282 $ 262 Interest cost 138 130 Expected return on plan assets (287) (261) Amortization of prior service cost (15) (15) Recognized net actuarial loss 38 38 Net periodic benefit cost $ 156 $ 154

Fair Value of Assets and Liab27

Fair Value of Assets and Liabilities (Tables)	3 Months Ended
	Mar. 31, 2017
Fair Value of Assets and Liabilities
Schedule of financial assets measured at fair value on a recurring basis	March 31, 2017 Fair Value Measurements Using Assets/Liabilities at (Dollars in thousands) Level 1 Level 2 Level 3 Fair Value Assets: Securities available for sale U.S. government agencies and corporations $ — $ 16,672 $ — $ 16,672 Mortgage-backed securities — 82,593 — 82,593 Obligations of states and political subdivisions — 113,814 — 113,814 Total securities available for sale — 213,079 — 213,079 Loans held for sale — 41,277 — 41,277 Derivative asset - IRLC — 1,394 — 1,394 Derivative asset - interest rate swaps on loans — 1,061 — 1,061 Derivative asset - cash flow hedges — 21 — 21 Total assets $ — $ 256,832 $ — $ 256,832 Liabilities: Derivative liability - cash flow hedges $ — $ 11 $ — $ 11 Derivative liability - interest rate swaps on loans — 1,061 — 1,061 Total liabilities $ — $ 1,072 $ — $ 1,072 December 31, 2016 Fair Value Measurements Using Assets/Liabilities at (Dollars in thousands) Level 1 Level 2 Level 3 Fair Value Assets: Securities available for sale U.S. government agencies and corporations $ — $ 16,112 $ — $ 16,112 Mortgage-backed securities — 76,816 — 76,816 Obligations of states and political subdivisions — 117,098 — 117,098 Total securities available for sale — 210,026 — 210,026 Loans held for sale — 52,027 — 52,027 Derivative asset - IRLC — 663 — 663 Derivative asset - interest rate swaps on loans — 1,032 — 1,032 Total assets $ — $ 263,748 $ — $ 263,748 Liabilities: Derivative liability - cash flow hedges $ — $ 56 $ — $ 56 Derivative liability - interest rate swaps on loans — 1,032 — 1,032 Total liabilities $ — $ 1,088 $ — $ 1,088
Schedule of financial assets measured at fair value on a nonrecurring basis	March 31, 2017 Fair Value Measurements Using Assets at Fair (Dollars in thousands) Level 1 Level 2 Level 3 Value Impaired loans, net $ — $ — $ 4,609 $ 4,609 Other real estate owned, net — — 376 376 Total $ — $ — $ 4,985 $ 4,985 December 31, 2016 Fair Value Measurements Using Assets at Fair (Dollars in thousands) Level 1 Level 2 Level 3 Value Impaired loans, net $ — $ — $ 2,303 $ 2,303 Other real estate owned, net — — 195 195 Total $ — $ — $ 2,498 $ 2,498
Schedule of quantitative information about Level 3 fair value measurements for financial assets measured at fair value on a non-recurring basis	Fair Value Measurements at March 31, 2017 (Dollars in thousands) Fair Value Valuation Technique(s) Unobservable Inputs Range of Inputs Impaired loans, net $ 4,609 Appraisals Discount to reflect current market conditions and estimated selling costs 5% - 20% Other real estate owned, net 376 Appraisals Discount to reflect current market conditions and estimated selling costs 15% - 28% Total $ 4,985
Schedule of carrying amounts and estimated fair values of financial instruments	Carrying Fair Value Measurements at March 31, 2017 Using Total Fair (Dollars in thousands) Value Level 1 Level 2 Level 3 Value Financial assets: Cash and short-term investments $ 120,538 $ 120,538 $ — $ — $ 120,538 Securities available for sale 213,079 — 213,079 — 213,079 Loans, net 964,093 — — 963,494 963,494 Loans held for sale 41,277 — 41,277 — 41,277 Derivative asset - IRLC 1,394 — 1,394 — 1,394 Derivative asset - interest rate swaps on loans 1,061 — 1,061 — 1,061 Derivative asset - cash flow hedges 21 — 21 — 21 Bank-owned life insurance 15,201 — 15,201 — 15,201 Accrued interest receivable 6,765 6,765 — — 6,765 Financial liabilities: Demand deposits $ 786,854 $ 786,854 $ — $ — $ 786,854 Time deposits 345,670 — 348,053 — 348,053 Borrowings 165,773 — 158,321 — 158,321 Derivative liability - cash flow hedges 11 — 11 — 11 Derivative liability - interest rate swaps on loans 1,061 — 1,061 — 1,061 Accrued interest payable 708 708 — — 708 Carrying Fair Value Measurements at December 31, 2016 Using Total Fair (Dollars in thousands) Value Level 1 Level 2 Level 3 Value Financial assets: Cash and short-term investments $ 103,201 $ 103,201 $ — $ — $ 103,201 Securities available for sale 210,026 — 210,026 — 210,026 Loans, net 960,162 — — 961,546 961,546 Loans held for sale 52,027 — 52,027 — 52,027 Derivative asset - IRLC 663 — 663 — 663 Derivative asset - interest rate swaps on loans 1,032 — 1,032 — 1,032 Bank-owned life insurance 15,103 — 15,103 — 15,103 Accrued interest receivable 7,261 7,261 — — 7,261 Financial liabilities: Demand deposits $ 775,506 $ 775,506 $ — $ — $ 775,506 Time deposits 344,415 — 346,648 — 346,648 Borrowings 164,567 — 157,138 — 157,138 Derivative liability - cash flow hedges 56 — 56 — 56 Derivative liability - interest rate swaps on loans 1,032 — 1,032 — 1,032 Accrued interest payable 703 703 — — 703

Business Segments (Tables)

Business Segments (Tables)	3 Months Ended
	Mar. 31, 2017
Business Segments
Schedule of segment reporting information, by segment	Three Months Ended March 31, 2017 Retail Mortgage Consumer (Dollars in thousands) Banking Banking Finance Other Eliminations Consolidated Revenues: Interest income $ 11,972 $ 316 $ 11,206 $ — $ (1,473) $ 22,021 Gains on sales of loans — 1,943 — — — 1,943 Other noninterest income 2,500 1,087 232 384 — 4,203 Total operating income 14,472 3,346 11,438 384 (1,473) 28,167 Expenses: Provision for loan losses 100 — 4,300 — — 4,400 Interest expense 1,465 88 1,907 283 (1,473) 2,270 Salaries and employee benefits 6,235 1,483 2,412 539 — 10,669 Other noninterest expenses 4,443 1,279 1,253 201 — 7,176 Total operating expenses 12,243 2,850 9,872 1,023 (1,473) 24,515 Income (loss) before income taxes 2,229 496 1,566 (639) — 3,652 Income tax expense (benefit) 407 199 624 (309) — 921 Net income (loss) $ 1,822 $ 297 $ 942 $ (330) $ — $ 2,731 Total assets $ $ 56,178 $ 301,506 $ 5,873 $ (204,810) $ 1,464,464 Goodwill $ 3,702 $ — $ 10,723 $ — $ — $ 14,425 Capital expenditures $ 379 $ 194 $ 13 $ 11 $ — $ 597 Three Months Ended March 31, 2016 Retail Mortgage Consumer (Dollars in thousands) Banking Banking Finance Other Eliminations Consolidated Revenues: Interest income $ 11,083 $ 310 $ 11,811 $ 1 $ (1,240) $ 21,965 Gains on sales of loans — 1,730 — — — 1,730 Other noninterest income 2,162 743 232 296 — 3,433 Total operating income 13,245 2,783 12,043 297 (1,240) 27,128 Expenses: Provision for loan losses — — 4,600 — — 4,600 Interest expense 1,454 62 1,703 283 (1,240) 2,262 Salaries and employee benefits 6,008 1,184 2,627 352 — 10,171 Other noninterest expenses 4,432 1,001 1,328 158 — 6,919 Total operating expenses 11,894 2,247 10,258 793 (1,240) 23,952 Income (loss) before income taxes 1,351 536 1,785 (496) — 3,176 Income tax expense (benefit) 22 214 703 (247) — 692 Net income (loss) $ 1,329 $ 322 $ 1,082 $ (249) $ — $ 2,484 Total assets $ 1,237,374 $ 39,924 $ 292,075 $ 5,186 $ (169,735) $ 1,404,824 Goodwill $ 3,702 $ — $ 10,723 $ — $ — $ 14,425 Capital expenditures $ 297 $ 169 $ 147 $ — $ — $ 613

Commitments and Financial Ins29

Commitments and Financial Instruments with Off-Balance-Sheet Risk (Tables)	3 Months Ended
	Mar. 31, 2017
Commitments and Financial Instruments with Off-Balance-Sheet Risk
Schedule of allowance for indemnifications losses	Three Months Ended March 31, (Dollars in thousands) 2017 2016 Allowance, beginning of period $ 2,303 $ 2,363 Provision for indemnification losses 36 52 Payments — — Allowance, end of period $ 2,339 $ 2,415

Derivative Financial Instrume30

Derivative Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2017
Derivative Financial Instruments
Schedule of derivatives that are considered to be hedging instruments	March 31, 2017 Notional Collateral (Dollars in thousands) Amount 1 Positions Assets 2 Liabilities 2 Pledged 3 Cash flow hedges: Interest rate swaps: Pay variable rate swaps with counterparty $ 25,000 3 $ 21 $ 11 $ 324 Not designated as hedges: Customer-related interest rate contracts: Matched interest rate swaps with borrower 25,048 4 — 1,061 — Matched interest rate swaps with counterparty 25,048 4 1,061 — — Other contracts: Interest rate lock commitments 134,822 608 1,394 — — Total 184,918 616 2,455 1,061 — Total derivatives $ 209,918 619 $ 2,476 $ 1,072 $ 324 1 Notional amounts are not recorded on the balance sheet and are generally used only as a basis on which interest and other payments are determined. 2 Balances represent fair value of derivative financial instruments. 3 Collateral pledged may be comprised of cash or securities. December 31, 2016 Notional Collateral (Dollars in thousands) Amount 1 Positions Assets 2 Liabilities 2 Pledged 3 Cash flow hedges: Interest rate swaps: Pay variable rate swaps with counterparty $ 25,000 3 $ — $ 56 $ 323 Not designated as hedges: Customer-related interest rate contracts: Matched interest rate swaps with borrower 25,151 4 — 1,032 — Matched interest rate swaps with counterparty 25,151 4 1,032 — — Other contracts: Interest rate lock commitments 106,612 504 663 — — Total 156,914 512 1,695 1,032 — Total derivatives $ 181,914 515 $ 1,695 $ 1,088 $ 323 1 Notional amounts are not recorded on the balance sheet and are generally used only as a basis on which interest and other payments are determined. 2 Balances represent fair value of derivative financial instruments. 3 Collateral pledged may be comprised of cash or securities.

Other Noninterest Expenses (Tab

Other Noninterest Expenses (Tables)	3 Months Ended
	Mar. 31, 2017
Other Noninterest Expenses
Schedule of other noninterest expense	Three Months Ended March 31, (Dollars in thousands) 2017 2016 Data processing expenses $ 858 $ 955 Professional fees 706 511 Marketing and advertising expenses 365 376 Travel and educational expenses 286 273 Telecommunication expenses 330 234 Amortization of core deposit intangible 150 206 All other noninterest expenses 1,860 2,030 Total other noninterest expenses $ 4,555 $ 4,585

Summary of Significant Accoun32

Summary of Significant Accounting Policies - Nature of Operations (Details)	3 Months Ended
	Mar. 31, 2017USD ($)subsidiary
ASU 2016-09 | Scenario Adjustment
Nature of Operations
Excess tax benefit | $	$ 60,000
C&F Bank
Nature of Operations
Number of wholly owned subsidiaries	5
CVB Title Services, Inc.
Nature of Operations
Number of insurance-related limited liability companies in which an ownership interest is held	2

Summary of Significant Accoun33

Summary of Significant Accounting Policies - Share-Based Compensation (Details) - Restricted Stock $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)
Share-based compensation
Compensation expense before tax	$ 403
Compensation expense after tax	250
Unrecognized compensation expense	$ 3,200

Summary of Significant Accoun34

Summary of Significant Accounting Policies - Restricted Stock Activity (Details) - Restricted Stock - $ / shares	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Shares
Unvested, beginning of period (in shares)	141,755	137,200
Granted (in shares)	15,275	16,150
Vested (in shares)	(14,950)	(7,350)
Forfeited	(910)	(300)
Unvested, end of period (in shares)	141,170	145,700
Weighted average grant date fair value
Unvested, beginning of period (in dollars per share)	$ 39.77	$ 36.50
Granted (in dollars per share)	45.40	38.16
Vested (in dollars per share)	34.73	23.20
Forfeited (in dollars per share)	41.58	41.78
Unvested, end of period (in dollars per share)	$ 40.90	$ 37.34

Summary of Significant Accoun35

Summary of Significant Accounting Policies - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Shares
Options outstanding at beginning of period (in shares)	2,250
Exercised (in Shares)	(2,250)
Options outstanding at end of period (in shares)		0	2,250
Exercisable at end of year (in shares)		24,000
Exercise Price
Options outstanding at beginning of year (in dollars per share)	$ 37.17
Exercised (in dollars per share)	$ 37.17
Options outstanding at end of year (in dollars per share)			$ 37.17
Exercisable at end of year		$ 38.39
Additional information
Remaining Contractual Life - Outstanding Options (in years)			3 months 18 days
Remaining Contractual Life - Exercisable Options - (in years)		7 months 6 days
Intrinsic value of unexercised in-the-money options - Outstanding Options (in dollars)			$ 29
Intrinsic value of unexercised in-the-money options - Exercisable Options (in dollars)		$ 12

Securities - Available for sale

Securities - Available for sale Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Available for sale debt and equity securities
Amortized Cost	$ 210,642	$ 207,893
Gross Unrealized Gains	3,532	3,493
Gross Unrealized Losses	(1,095)	(1,360)
Fair Value	213,079	210,026
U.S. government agencies and corporations
Available for sale debt and equity securities
Amortized Cost	17,017	16,526
Gross Unrealized Gains	1
Gross Unrealized Losses	(346)	(414)
Fair Value	16,672	16,112
Mortgage-backed securities
Available for sale debt and equity securities
Amortized Cost	82,914	77,210
Gross Unrealized Gains	203	228
Gross Unrealized Losses	(524)	(622)
Fair Value	82,593	76,816
Obligations of states and political subdivisions
Available for sale debt and equity securities
Amortized Cost	110,711	114,157
Gross Unrealized Gains	3,328	3,265
Gross Unrealized Losses	(225)	(324)
Fair Value	$ 113,814	$ 117,098

Securities - Contractual Maturi

Securities - Contractual Maturities (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Amortized Cost
Due in one year or less	$ 29,291
Due after one year through five years	155,909
Due after five years through ten years	17,207
Due after ten years	8,235
Amortized Cost	210,642		$ 207,893
Estimated Fair Value
Due in one year or less	29,397
Due after one year through five years	157,621
Due after five years through ten years	17,359
Due after ten years	8,702
Fair Value	213,079		$ 210,026
Proceeds from sales and maturities and related gains and losses
Proceeds from maturities and calls of securities available for sale	11,370	$ 12,220
Gross realized gains from maturities and calls of securities available for sale	$ 1	$ 1

Securities - Pledged as Collate

Securities - Pledged as Collateral (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Securities pledged
Amortized Cost	$ 210,642	$ 207,893
Fair Value	213,079	210,026
Securities Pledged as Collateral
Securities pledged
Amortized Cost	106,360	113,070
Fair Value	$ 107,490	$ 114,160

Securities - Unrealized Loss Po

Securities - Unrealized Loss Positions (Details)	3 Months Ended
	Mar. 31, 2017USD ($)security	Dec. 31, 2016USD ($)
Fair value
Less Than 12 Months, Fair Value	$ 86,443,000	$ 92,173,000
12 Months or More, Fair Value	2,823,000	2,562,000
Total Fair Value	89,266,000	94,735,000
Unrealized Loss
Less Than 12 Months, Unrealized Loss	1,049,000	1,318,000
12 Months or More, Unrealized Loss	46,000	42,000
Total Unrealized Loss	$ 1,095,000	1,360,000
Other information
Number of positions considered temporarily impaired | security	132
Other than temporary impairment	$ 0
U.S. government agencies and corporations
Fair value
Less Than 12 Months, Fair Value	16,169,000	16,111,000
Total Fair Value	16,169,000	16,111,000
Unrealized Loss
Less Than 12 Months, Unrealized Loss	346,000	414,000
Total Unrealized Loss	346,000	414,000
Mortgage-backed securities
Fair value
Less Than 12 Months, Fair Value	56,137,000	54,227,000
12 Months or More, Fair Value	616,000	671,000
Total Fair Value	56,753,000	54,898,000
Unrealized Loss
Less Than 12 Months, Unrealized Loss	523,000	621,000
12 Months or More, Unrealized Loss	1,000	1,000
Total Unrealized Loss	524,000	622,000
Obligations of states and political subdivisions
Fair value
Less Than 12 Months, Fair Value	14,137,000	21,835,000
12 Months or More, Fair Value	2,207,000	1,891,000
Total Fair Value	16,344,000	23,726,000
Unrealized Loss
Less Than 12 Months, Unrealized Loss	180,000	283,000
12 Months or More, Unrealized Loss	45,000	41,000
Total Unrealized Loss	$ 225,000	$ 324,000
Standard & Poor's, A Rating
Other information
Percentage of portfolio with rating	97.00%

Securities - Restricted Stocks

Securities - Restricted Stocks (Details) - USD ($)	3 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Securities
Restricted stocks, at cost	$ 3,443,000	$ 3,403,000
Restricted stocks, other-than-temporary impairment	$ 0

Loans - Major Classifications o

Loans - Major Classifications of Loans (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Loans
Loans	$ 1,000,827	$ 997,228
Less allowance for loan losses	(36,734)	(37,066)
Loans, net	964,093	960,162
Real estate - residential mortgage
Loans
Loans	189,769	188,264
Real estate - construction
Loans
Loans	50,693	55,732
Commercial, financial and agricultural
Loans
Loans	399,853	390,388
Equity lines
Loans
Loans	51,147	52,600
Consumer Loan
Loans
Loans	11,004	8,399
Amount included related to demand deposit overdrafts	209	284
Consumer Finance
Loans
Loans	$ 298,361	$ 301,845

Loans - Loans Acquired (Details

Loans - Loans Acquired (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
PCI Loans
Loans
Outstanding principal balance	$ 17,530
Carrying amount
Acquired Loans	7,410
CVBK
Loans
Outstanding principal balance	71,278	$ 75,983
Carrying amount
Acquired Loans	58,433	62,585
CVBK | Real estate - residential mortgage
Carrying amount
Acquired Loans	14,399	14,641
CVBK | Commercial, financial and agricultural
Carrying amount
Acquired Loans	33,255	36,374
CVBK | Equity lines
Carrying amount
Acquired Loans	10,678	11,456
CVBK | Consumer Loan
Carrying amount
Acquired Loans	101	114
CVBK | PCI Loans
Loans
Outstanding principal balance	17,530	19,770
Carrying amount
Acquired Loans	7,409	9,256
CVBK | PCI Loans | Real estate - residential mortgage
Carrying amount
Acquired Loans	1,207	1,219
CVBK | PCI Loans | Commercial, financial and agricultural
Carrying amount
Acquired Loans	5,922	7,759
CVBK | PCI Loans | Equity lines
Carrying amount
Acquired Loans	280	278
CVBK | Purchased Performing Loans
Loans
Outstanding principal balance	53,748	56,213
Carrying amount
Acquired Loans	51,024	53,329
CVBK | Purchased Performing Loans | Real estate - residential mortgage
Carrying amount
Acquired Loans	13,192	13,422
CVBK | Purchased Performing Loans | Commercial, financial and agricultural
Carrying amount
Acquired Loans	27,333	28,615
CVBK | Purchased Performing Loans | Equity lines
Carrying amount
Acquired Loans	10,398	11,178
CVBK | Purchased Performing Loans | Consumer Loan
Carrying amount
Acquired Loans	$ 101	$ 114

Loans - Loans on Nonaccrual Sta

Loans - Loans on Nonaccrual Status (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Loans on nonaccrual status
Loans on nonaccrual status	$ 9,128	$ 4,842
Real estate - residential mortgage
Loans on nonaccrual status
Loans on nonaccrual status	1,019	1,652
Commercial, financial and agricultural | Commercial real estate lending
Loans on nonaccrual status
Loans on nonaccrual status	6,882	1,619
Commercial, financial and agricultural | Commercial business lending
Loans on nonaccrual status
Loans on nonaccrual status	129	131
Equity lines
Loans on nonaccrual status
Loans on nonaccrual status	712	757
Consumer Loan
Loans on nonaccrual status
Loans on nonaccrual status	2	118
Consumer Finance
Loans on nonaccrual status
Loans on nonaccrual status	$ 384	$ 565

Loans - Past Due Status (Detail

Loans - Past Due Status (Details) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Loans on nonaccrual status
Total Past Due	$ 14,307,000	$ 23,155,000
Current	979,111,000	964,817,000
Total Loans	1,000,827,000	997,228,000
90+ days past due and accruing	1,406,000	6,000
Additional disclosure for nonaccrual loans
Current, nonaccrual status	6,300,000	3,040,000
Nonaccrual loans, 30-59 days past due	379,000	570,000
Nonaccrual loans, 60-89 days past due	1,940,000	370,000
Nonaccrual loans, 90+ days past due	510,000	867,000
PCI
Loans on nonaccrual status
PCI	7,409,000	9,256,000
30-59 Days Past Due
Loans on nonaccrual status
Total Past Due	9,599,000	19,930,000
60-89 Days Past Due
Loans on nonaccrual status
Total Past Due	2,791,000	2,358,000
90+ Days Past Due
Loans on nonaccrual status
Total Past Due	1,917,000	867,000
Real estate - residential mortgage
Loans on nonaccrual status
Total Past Due	1,693,000	1,265,000
Current	186,869,000	185,780,000
Total Loans	189,769,000	188,264,000
90+ days past due and accruing	194,000
Real estate - residential mortgage | PCI
Loans on nonaccrual status
PCI	1,207,000	1,219,000
Real estate - residential mortgage | 30-59 Days Past Due
Loans on nonaccrual status
Total Past Due	1,279,000	848,000
Real estate - residential mortgage | 60-89 Days Past Due
Loans on nonaccrual status
Total Past Due	95,000	233,000
Real estate - residential mortgage | 90+ Days Past Due
Loans on nonaccrual status
Total Past Due	319,000	184,000
Equity lines
Loans on nonaccrual status
Total Past Due	564,000	991,000
Current	50,303,000	51,331,000
Total Loans	51,147,000	52,600,000
90+ days past due and accruing	120,000
Equity lines | PCI
Loans on nonaccrual status
PCI	280,000	278,000
Equity lines | 30-59 Days Past Due
Loans on nonaccrual status
Total Past Due	444,000	853,000
Equity lines | 60-89 Days Past Due
Loans on nonaccrual status
Total Past Due		138,000
Equity lines | 90+ Days Past Due
Loans on nonaccrual status
Total Past Due	120,000
Consumer Loan
Loans on nonaccrual status
Total Past Due	24,000	140,000
Current	10,980,000	8,259,000
Total Loans	11,004,000	8,399,000
90+ days past due and accruing		6,000
Consumer Loan | 30-59 Days Past Due
Loans on nonaccrual status
Total Past Due	22,000	22,000
Consumer Loan | 90+ Days Past Due
Loans on nonaccrual status
Total Past Due	2,000	118,000
Consumer Finance
Loans on nonaccrual status
Total Past Due	8,938,000	15,551,000
Current	289,423,000	286,294,000
Total Loans	298,361,000	301,845,000
Consumer Finance | 30-59 Days Past Due
Loans on nonaccrual status
Total Past Due	7,774,000	13,011,000
Consumer Finance | 60-89 Days Past Due
Loans on nonaccrual status
Total Past Due	780,000	1,975,000
Consumer Finance | 90+ Days Past Due
Loans on nonaccrual status
Total Past Due	384,000	565,000
Construction Lending | Real estate - construction
Loans on nonaccrual status
Current	42,390,000	47,062,000
Total Loans	42,390,000	47,062,000
Consumer lot lending | Real estate - construction
Loans on nonaccrual status
Current	8,303,000	8,670,000
Total Loans	8,303,000	8,670,000
Commercial real estate lending | Commercial, financial and agricultural
Loans on nonaccrual status
Total Past Due	2,436,000	5,133,000
Current	268,165,000	249,408,000
Total Loans	276,523,000	261,786,000
90+ days past due and accruing	455,000
Commercial real estate lending | Commercial, financial and agricultural | PCI
Loans on nonaccrual status
PCI	5,922,000	7,245,000
Commercial real estate lending | Commercial, financial and agricultural | 30-59 Days Past Due
Loans on nonaccrual status
Total Past Due	65,000	5,121,000
Commercial real estate lending | Commercial, financial and agricultural | 60-89 Days Past Due
Loans on nonaccrual status
Total Past Due	1,916,000	12,000
Commercial real estate lending | Commercial, financial and agricultural | 90+ Days Past Due
Loans on nonaccrual status
Total Past Due	455,000
Land acquisition and development lending | Commercial, financial and agricultural
Loans on nonaccrual status
Total Past Due	270,000
Current	38,172,000	43,472,000
Total Loans	38,442,000	43,472,000
90+ days past due and accruing	270,000
Land acquisition and development lending | Commercial, financial and agricultural | 90+ Days Past Due
Loans on nonaccrual status
Total Past Due	270,000
Builder line lending | Commercial, financial and agricultural
Loans on nonaccrual status
Total Past Due	367,000
Current	25,749,000	22,391,000
Total Loans	26,116,000	22,391,000
90+ days past due and accruing	367,000
Builder line lending | Commercial, financial and agricultural | 90+ Days Past Due
Loans on nonaccrual status
Total Past Due	367,000
Commercial business lending | Commercial, financial and agricultural
Loans on nonaccrual status
Total Past Due	15,000	75,000
Current	58,757,000	62,150,000
Total Loans	58,772,000	62,739,000
Commercial business lending | Commercial, financial and agricultural | PCI
Loans on nonaccrual status
PCI		514,000
Commercial business lending | Commercial, financial and agricultural | 30-59 Days Past Due
Loans on nonaccrual status
Total Past Due	15,000	75,000
CVBK | 1-29 Days Past Due
Loans on nonaccrual status
Total Past Due	48,740,000	52,640,000
CVBK | 30-59 Days Past Due
Loans on nonaccrual status
Total Past Due	389,000	532,000
CVBK | 60-89 Days Past Due
Loans on nonaccrual status
Total Past Due	1,890,000	143,000
CVBK | 90+ Days Past Due
Loans on nonaccrual status
Total Past Due		$ 17,000
PCI Loans
Loans on nonaccrual status
90+ days past due and accruing	$ 194,000

Loans - Troubled Debt Restructu

Loans - Troubled Debt Restructurings (Details)	3 Months Ended
	Mar. 31, 2017USD ($)loan	Mar. 31, 2016USD ($)loan
Loan modifications classified as troubled debt restructurings
Number of Loans | loan	4,000	3,000
Pre-Modification Recorded Investment (in Dollars)	$ 4,658,000	$ 448,000
Post-Modification Recorded Investment (in Dollars)	4,658,000	448,000
Recorded Investment, TDR payment defaults	$ 0	$ 0
TDR payment default period	12 months
Period determining when a past due TDR becomes a subsequent default	90 days
Real estate - residential mortgage | Interest rate concession
Loan modifications classified as troubled debt restructurings
Number of Loans | loan		1
Pre-Modification Recorded Investment (in Dollars)		$ 57,000
Post-Modification Recorded Investment (in Dollars)		$ 57,000
Commercial, financial and agricultural | Interest rate concession
Loan modifications classified as troubled debt restructurings
Number of Loans | loan		1
Pre-Modification Recorded Investment (in Dollars)		$ 291,000
Post-Modification Recorded Investment (in Dollars)		$ 291,000
Commercial, financial and agricultural | Commercial real estate lending | Interest rate concession
Loan modifications classified as troubled debt restructurings
Number of Loans | loan	1
Pre-Modification Recorded Investment (in Dollars)	$ 12,000
Post-Modification Recorded Investment (in Dollars)	$ 12,000
Commercial, financial and agricultural | Commercial real estate lending | Interest rate and term concession
Loan modifications classified as troubled debt restructurings
Number of Loans | loan	3
Pre-Modification Recorded Investment (in Dollars)	$ 4,646,000
Post-Modification Recorded Investment (in Dollars)	$ 4,646,000
Commercial, financial and agricultural | Commercial business lending | Interest rate concession
Loan modifications classified as troubled debt restructurings
Number of Loans | loan		1
Pre-Modification Recorded Investment (in Dollars)		$ 100,000
Post-Modification Recorded Investment (in Dollars)		$ 100,000

Loans - Impaired Loans (Details

Loans - Impaired Loans (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Impaired loans
Impaired loans, troubled debt restructurings	$ 10,100
Impaired loans, Unpaid Principal Balance	12,104	$ 6,225
Impaired loans, Recorded Investment in Loans without Specific Reserve	2,487	2,227
Impaired loans, Recorded Investment in Loans with Specific Reserve	9,463	3,598,000
Impaired loans, Related Allowance	1,242	652
Impaired loans, Average Balance	12,027	5,926
Impaired loans, Interest Income Recognized	69	168
Real estate - residential mortgage
Impaired loans
Impaired loans, Unpaid Principal Balance	3,597	3,539
Impaired loans, Recorded Investment in Loans without Specific Reserve	1,935	1,676
Impaired loans, Recorded Investment in Loans with Specific Reserve	1,615	1,732,000
Impaired loans, Related Allowance	313	251
Impaired loans, Average Balance	3,561	3,446
Impaired loans, Interest Income Recognized	46	122
Commercial, financial and agricultural | Commercial real estate lending
Impaired loans
Impaired loans, Unpaid Principal Balance	8,021	1,967
Impaired loans, Recorded Investment in Loans without Specific Reserve	489	430
Impaired loans, Recorded Investment in Loans with Specific Reserve	7,430	1,272,000
Impaired loans, Related Allowance	855	261
Impaired loans, Average Balance	7,979	1,746
Impaired loans, Interest Income Recognized	19	29
Commercial, financial and agricultural | Commercial business lending
Impaired loans
Impaired loans, Unpaid Principal Balance	133	167
Impaired loans, Recorded Investment in Loans without Specific Reserve	63	89
Impaired loans, Recorded Investment in Loans with Specific Reserve	66	74,000
Impaired loans, Related Allowance	38	46
Impaired loans, Average Balance	134	181
Impaired loans, Interest Income Recognized	1	8
Equity lines
Impaired loans
Impaired loans, Unpaid Principal Balance	32	32
Impaired loans, Recorded Investment in Loans without Specific Reserve		32
Impaired loans, Recorded Investment in Loans with Specific Reserve	30
Impaired loans, Related Allowance	30
Impaired loans, Average Balance	32	32
Impaired loans, Interest Income Recognized		1
Consumer Loan
Impaired loans
Impaired loans, Unpaid Principal Balance	321	520
Impaired loans, Recorded Investment in Loans with Specific Reserve	322	520,000
Impaired loans, Related Allowance	6	94
Impaired loans, Average Balance	321	521
Impaired loans, Interest Income Recognized	3	$ 8
PCI Loans
Impaired loans
Outstanding principal balance	17,530
Acquired Loans	$ 7,410

Loans - Change in Accretable Yi

Loans - Change in Accretable Yield (Details) - PCI Loans - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Change in the accretable yield
Accretable yield	$ 8,637	$ 10,419
Accretion	(683)	(462)
Reclassification of nonaccreatable difference due to improvement in expected cash flows	328	441
Other changes, net	(566)	(263)
Accretable yield	$ 7,716	$ 10,135

Allowance for Loan Losses - Cha

Allowance for Loan Losses - Change in Allowance for Loan Losses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Changes in the allowance for loan losses
Balance at the beginning of period	$ 37,066	$ 35,569
Provision charged to operations	4,400	4,600
Loans charged off	(5,898)	(5,762)
Recoveries of loans previously charged off	1,166	1,431
Balance at the end of period	36,734	35,838
Real estate - residential mortgage
Changes in the allowance for loan losses
Balance at the beginning of period	2,559	2,471
Provision charged to operations	(33)	(10)
Loans charged off	(5)
Recoveries of loans previously charged off	14	26
Balance at the end of period	2,535	2,487
Real estate - construction
Changes in the allowance for loan losses
Balance at the beginning of period	816	94
Provision charged to operations	(75)	192
Balance at the end of period	741	286
Commercial, financial and agricultural
Changes in the allowance for loan losses
Balance at the beginning of period	7,393	7,755
Provision charged to operations	259	(226)
Loans charged off	(153)	(35)
Recoveries of loans previously charged off	7	160
Balance at the end of period	7,506	7,654
Equity lines
Changes in the allowance for loan losses
Balance at the beginning of period	685	1,052
Provision charged to operations	27	91
Loans charged off		(55)
Balance at the end of period	712	1,088
Consumer Loan
Changes in the allowance for loan losses
Balance at the beginning of period	261	243
Provision charged to operations	(78)	(47)
Loans charged off	(62)	(71)
Recoveries of loans previously charged off	41	127
Balance at the end of period	162	252
Consumer Finance
Changes in the allowance for loan losses
Balance at the beginning of period	25,352	23,954
Provision charged to operations	4,300	4,600
Loans charged off	(5,678)	(5,601)
Recoveries of loans previously charged off	1,104	1,118
Balance at the end of period	$ 25,078	$ 24,071

Allowance for Loan Losses - All

Allowance for Loan Losses - Allowance and Loans by Impairment Methodology (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016	Mar. 31, 2016	Dec. 31, 2015
Changes in the allowance for loan losses
Ending balance	$ 36,734	$ 37,066	$ 35,838	$ 35,569
Ending balance: individually evaluated for impairment	1,242	652
Ending balance, collectively evaluated for impairment	35,492	36,414
Loans:
Ending balance	1,000,827	997,228
Ending balance: individually evaluated for impairment	11,950	5,825
Ending balance: collectively evaluated for impairment	981,468	982,147
Real estate - residential mortgage
Changes in the allowance for loan losses
Ending balance	2,535	2,559	2,487	2,471
Ending balance: individually evaluated for impairment	313	251
Ending balance, collectively evaluated for impairment	2,222	2,308
Loans:
Ending balance	189,769	188,264
Ending balance: individually evaluated for impairment	3,550	3,408
Ending balance: collectively evaluated for impairment	185,012	183,637
Real estate - construction
Changes in the allowance for loan losses
Ending balance	741	816	286	94
Ending balance, collectively evaluated for impairment	741	816
Loans:
Ending balance	50,693	55,732
Ending balance: collectively evaluated for impairment	50,693	55,732
Commercial, financial and agricultural
Changes in the allowance for loan losses
Ending balance	7,506	7,393	7,654	7,755
Ending balance: individually evaluated for impairment	893	307
Ending balance, collectively evaluated for impairment	6,613	7,086
Loans:
Ending balance	399,853	390,388
Ending balance: individually evaluated for impairment	8,048	1,865
Ending balance: collectively evaluated for impairment	385,883	380,764
Equity lines
Changes in the allowance for loan losses
Ending balance	712	685	1,088	1,052
Ending balance: individually evaluated for impairment	30
Ending balance, collectively evaluated for impairment	682	685
Loans:
Ending balance	51,147	52,600
Ending balance: individually evaluated for impairment	30	32
Ending balance: collectively evaluated for impairment	50,837	52,290
Consumer Loan
Changes in the allowance for loan losses
Ending balance	162	261	252	243
Ending balance: individually evaluated for impairment	6	94
Ending balance, collectively evaluated for impairment	156	167
Loans:
Ending balance	11,004	8,399
Ending balance: individually evaluated for impairment	322	520
Ending balance: collectively evaluated for impairment	10,682	7,879
Consumer Finance
Changes in the allowance for loan losses
Ending balance	25,078	25,352	$ 24,071	$ 23,954
Ending balance, collectively evaluated for impairment	25,078	25,352
Loans:
Ending balance	298,361	301,845
Ending balance: collectively evaluated for impairment	298,361	301,845
PCI
Loans:
Ending balance: acquired loans - purchase credit impaired	7,409	9,256
PCI | Real estate - residential mortgage
Loans:
Ending balance: acquired loans - purchase credit impaired	1,207	1,219
PCI | Commercial, financial and agricultural
Loans:
Ending balance: acquired loans - purchase credit impaired	5,922	7,759
PCI | Equity lines
Loans:
Ending balance: acquired loans - purchase credit impaired	$ 280	$ 278

Allowance for Loan Losses - Cre

Allowance for Loan Losses - Credit Quality Indicators (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Allowance for loan losses
Loans, excluding consumer finance	$ 702,466	$ 695,383
Loans	1,000,827	997,228
Pass
Allowance for loan losses
Loans, excluding consumer finance	665,675	652,903
Special Mention
Allowance for loan losses
Loans, excluding consumer finance	6,156	9,988
Substandard
Allowance for loan losses
Loans, excluding consumer finance	21,891	28,215
Substandard Nonaccrual
Allowance for loan losses
Loans, excluding consumer finance	8,744	4,277
Real estate - residential mortgage
Allowance for loan losses
Loans, excluding consumer finance	189,769	188,264
Loans	189,769	188,264
Real estate - residential mortgage | Pass
Allowance for loan losses
Loans, excluding consumer finance	183,451	181,814
Real estate - residential mortgage | Special Mention
Allowance for loan losses
Loans, excluding consumer finance	1,925	2,037
Real estate - residential mortgage | Substandard
Allowance for loan losses
Loans, excluding consumer finance	3,374	2,761
Real estate - residential mortgage | Substandard Nonaccrual
Allowance for loan losses
Loans, excluding consumer finance	1,019	1,652
Real estate - construction
Allowance for loan losses
Loans	50,693	55,732
Real estate - construction | Construction Lending
Allowance for loan losses
Loans, excluding consumer finance	42,390	47,062
Real estate - construction | Construction Lending | Pass
Allowance for loan losses
Loans, excluding consumer finance	42,390	47,062
Real estate - construction | Consumer lot lending
Allowance for loan losses
Loans, excluding consumer finance	8,303	8,670
Real estate - construction | Consumer lot lending | Pass
Allowance for loan losses
Loans, excluding consumer finance	8,303	8,670
Commercial, financial and agricultural
Allowance for loan losses
Loans	399,853	390,388
Commercial, financial and agricultural | Commercial real estate lending
Allowance for loan losses
Loans, excluding consumer finance	276,523	261,786
Commercial, financial and agricultural | Commercial real estate lending | Pass
Allowance for loan losses
Loans, excluding consumer finance	262,419	243,427
Commercial, financial and agricultural | Commercial real estate lending | Special Mention
Allowance for loan losses
Loans, excluding consumer finance	3,479	5,860
Commercial, financial and agricultural | Commercial real estate lending | Substandard
Allowance for loan losses
Loans, excluding consumer finance	3,743	10,880
Commercial, financial and agricultural | Commercial real estate lending | Substandard Nonaccrual
Allowance for loan losses
Loans, excluding consumer finance	6,882	1,619
Commercial, financial and agricultural | Land acquisition and development lending
Allowance for loan losses
Loans, excluding consumer finance	38,442	43,472
Commercial, financial and agricultural | Land acquisition and development lending | Pass
Allowance for loan losses
Loans, excluding consumer finance	24,947	29,595
Commercial, financial and agricultural | Land acquisition and development lending | Special Mention
Allowance for loan losses
Loans, excluding consumer finance		565
Commercial, financial and agricultural | Land acquisition and development lending | Substandard
Allowance for loan losses
Loans, excluding consumer finance	13,495	13,312
Commercial, financial and agricultural | Builder line lending
Allowance for loan losses
Loans, excluding consumer finance	26,116	22,391
Commercial, financial and agricultural | Builder line lending | Pass
Allowance for loan losses
Loans, excluding consumer finance	25,749	21,235
Commercial, financial and agricultural | Builder line lending | Special Mention
Allowance for loan losses
Loans, excluding consumer finance		789
Commercial, financial and agricultural | Builder line lending | Substandard
Allowance for loan losses
Loans, excluding consumer finance	367	367
Commercial, financial and agricultural | Commercial business lending
Allowance for loan losses
Loans, excluding consumer finance	58,772	62,739
Commercial, financial and agricultural | Commercial business lending | Pass
Allowance for loan losses
Loans, excluding consumer finance	58,016	62,044
Commercial, financial and agricultural | Commercial business lending | Special Mention
Allowance for loan losses
Loans, excluding consumer finance	224	255
Commercial, financial and agricultural | Commercial business lending | Substandard
Allowance for loan losses
Loans, excluding consumer finance	403	309
Commercial, financial and agricultural | Commercial business lending | Substandard Nonaccrual
Allowance for loan losses
Loans, excluding consumer finance	129	131
Equity lines
Allowance for loan losses
Loans, excluding consumer finance	51,147	52,600
Loans	51,147	52,600
Equity lines | Pass
Allowance for loan losses
Loans, excluding consumer finance	49,729	51,186
Equity lines | Special Mention
Allowance for loan losses
Loans, excluding consumer finance	528	480
Equity lines | Substandard
Allowance for loan losses
Loans, excluding consumer finance	178	177
Equity lines | Substandard Nonaccrual
Allowance for loan losses
Loans, excluding consumer finance	712	757
Consumer Loan
Allowance for loan losses
Loans, excluding consumer finance	11,004	8,399
Loans	11,004	8,399
Consumer Loan | Pass
Allowance for loan losses
Loans, excluding consumer finance	10,671	7,870
Consumer Loan | Special Mention
Allowance for loan losses
Loans, excluding consumer finance		2
Consumer Loan | Substandard
Allowance for loan losses
Loans, excluding consumer finance	331	409
Consumer Loan | Substandard Nonaccrual
Allowance for loan losses
Loans, excluding consumer finance	2	118
CVBK | Pass
Allowance for loan losses
Loans, excluding consumer finance		54,060
Loans	51,250
CVBK | Special Mention
Allowance for loan losses
Loans, excluding consumer finance		2,590
Loans	2,220
CVBK | Substandard
Allowance for loan losses
Loans, excluding consumer finance		5,740
Loans	2,890
CVBK | Substandard Nonaccrual
Allowance for loan losses
Loans, excluding consumer finance		$ 196
Loans	$ 2,080

Allowance for Loan Losses - Loa

Allowance for Loan Losses - Loans by Credit Quality Indicators - Performing and Non-Performing (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Allowance for loan losses
Loans	$ 1,000,827	$ 997,228
Consumer Finance
Allowance for loan losses
Loans	298,361	301,845
Consumer Finance | Performing
Allowance for loan losses
Loans	297,977	301,280
Consumer Finance | Nonperforming
Allowance for loan losses
Loans	$ 384	$ 565

Shareholders' Equity and Earn52

Shareholders' Equity and Earnings Per Common Share - Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Shareholders’ Equity and Earnings Per Common Share
Deferred taxes included in AOCI	$ 393	$ 534
Net unrealized gains on securities	1,584	1,386
Net unrecognized gains (losses) on cash flow hedges	6	(34)
Net unrecognized losses on defined benefit plan	(2,321)	(2,336)
Total accumulated other comprehensive income	$ (731)	$ (984)

Shareholders' Equity, Other Com

Shareholders' Equity, Other Comprehensive Income and Earnings Per Common Share - Shareholders' Equity (Common Shares) (Details) - Common - shares	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Repurchase Program
Common stock
Shares repurchased	0	0
Restricted Stock Tax Withholding Repurchases
Common stock
Shares repurchased	4,049	3,525

Shareholders' Equity and Earn54

Shareholders' Equity and Earnings Per Common Share - Earnings Per Common Share (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Components of earnings per share calculations
Net income	$ 2,731	$ 2,484
Weighted average number of common shares used in earnings per common share – basic (in shares)	3,483,007	3,448,630
Effect of dilutive securities:
Stock option awards	316	1,109
Weighted average number of common shares used in earnings per common share – assuming dilution	3,483,323	3,449,739

Shareholders' Equity and Earn55

Shareholders' Equity and Earnings Per Common Share - Antidilutive Securities (Details) - shares	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Stock options
Antidilutive securities
Antidilutive securities excluded from earnings per share	0	12,000

Employee Benefit Plans (Details

Employee Benefit Plans (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Components of net periodic benefit cost
Service cost	$ 282	$ 262
Interest cost	138	130
Expected return on plan assets	(287)	(261)
Amortization of prior service cost	(15)	(15)
Recognized net actuarial loss	38	38
Net periodic benefit cost	$ 156	$ 154

Fair Value of Assets and Liab57

Fair Value of Assets and Liabilities - Financial Assets Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Securities available for sale
Securities available for sale	$ 213,079	$ 210,026
Derivative asset	2,476	1,695
Liabilities:
Derivative liabilities	1,072	1,088
Recurring
Securities available for sale
Securities available for sale	213,079	210,026
Loans held for sale	41,277	52,027
Total assets measured at fair value	256,832	263,748
Liabilities:
Derivative liabilities	1,072	1,088
Recurring | Cash Flow Hedges
Securities available for sale
Derivative asset	21
Liabilities:
Derivative liabilities	11	56
Recurring | Interest rate lock commitments
Securities available for sale
Derivative asset	1,394	663
Recurring | Interest Rate Swap
Securities available for sale
Derivative asset	1,061	1,032
Liabilities:
Derivative liabilities	1,061	1,032
Level 2 | Recurring
Securities available for sale
Securities available for sale	213,079	210,026
Loans held for sale	41,277	52,027
Total assets measured at fair value	256,832	263,748
Liabilities:
Derivative liabilities	1,072	1,088
Level 2 | Recurring | Cash Flow Hedges
Securities available for sale
Derivative asset	21
Liabilities:
Derivative liabilities	11	56
Level 2 | Recurring | Interest rate lock commitments
Securities available for sale
Derivative asset	1,394	663
Level 2 | Recurring | Interest Rate Swap
Securities available for sale
Derivative asset	1,061	1,032
Liabilities:
Derivative liabilities	1,061	1,032
U.S. government agencies and corporations
Securities available for sale
Securities available for sale	16,672	16,112
U.S. government agencies and corporations | Recurring
Securities available for sale
Securities available for sale	16,672	16,112
U.S. government agencies and corporations | Level 2 | Recurring
Securities available for sale
Securities available for sale	16,672	16,112
Mortgage-backed securities
Securities available for sale
Securities available for sale	82,593	76,816
Mortgage-backed securities | Recurring
Securities available for sale
Securities available for sale	82,593	76,816
Mortgage-backed securities | Level 2 | Recurring
Securities available for sale
Securities available for sale	82,593	76,816
Obligations of states and political subdivisions
Securities available for sale
Securities available for sale	113,814	117,098
Obligations of states and political subdivisions | Recurring
Securities available for sale
Securities available for sale	113,814	117,098
Obligations of states and political subdivisions | Level 2 | Recurring
Securities available for sale
Securities available for sale	$ 113,814	$ 117,098

Fair Value of Assets and Liab58

Fair Value of Assets and Liabilities - Financial Assets Measured at Fair Value on Non-Recurring Basis (Details) - Nonrecurring - USD ($)	3 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Fair value assets and liabilities - Nonrecurring Basis
Value above which impaired loans are valued using either the present value of expected future cash flows or fair value of the collateral	$ 500,000
Value below which loans are valued using the present value of expected future cash flows discounted at the loan's effective interest rate	500,000
Financial assets measured at fair value on a non-recurring basis	4,985,000	$ 2,498,000
Impaired loans, net
Fair value assets and liabilities - Nonrecurring Basis
Financial assets measured at fair value on a non-recurring basis	4,609,000	2,303,000
Other real estate owned, net
Fair value assets and liabilities - Nonrecurring Basis
Financial assets measured at fair value on a non-recurring basis	376,000	195,000
Level 3
Fair value assets and liabilities - Nonrecurring Basis
Financial assets measured at fair value on a non-recurring basis	4,985,000	2,498,000
Level 3 | Impaired loans, net
Fair value assets and liabilities - Nonrecurring Basis
Financial assets measured at fair value on a non-recurring basis	$ 4,609,000	2,303,000
Level 3 | Impaired loans, net | Minimum
Fair value assets and liabilities - Nonrecurring Basis
Discount rate	5.00%
Level 3 | Impaired loans, net | Maximum
Fair value assets and liabilities - Nonrecurring Basis
Discount rate	20.00%
Level 3 | Other real estate owned, net
Fair value assets and liabilities - Nonrecurring Basis
Financial assets measured at fair value on a non-recurring basis	$ 376,000	$ 195,000
Level 3 | Other real estate owned, net | Minimum
Fair value assets and liabilities - Nonrecurring Basis
Discount rate	15.00%
Level 3 | Other real estate owned, net | Maximum
Fair value assets and liabilities - Nonrecurring Basis
Discount rate	28.00%

Fair Value of Assets and Liab59

Fair Value of Assets and Liabilities - Carrying Value and Estimated Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Assets:
Securities available for sale	$ 213,079	$ 210,026
Derivative asset	2,476	1,695
Bank-owned life insurance	15,201	15,103
Financial liabilities:
Derivative liabilities	1,072	1,088
Carrying Value
Assets:
Cash and short-term investments	120,538	103,201
Securities available for sale	213,079	210,026
Loans, net	964,093	960,162
Loans held for sale	41,277	52,027
Bank-owned life insurance	15,201	15,103
Accrued interest receivable	6,765	7,261
Financial liabilities:
Demand deposits	786,854	775,506
Time deposits	345,670	344,415
Borrowings	165,773	164,567
Accrued interest payable	708	703
Total Fair Value
Assets:
Cash and short-term investments	120,538	103,201
Securities available for sale	213,079	210,026
Loans, net	963,494	961,546
Loans held for sale	41,277	52,027
Bank-owned life insurance	15,201	15,103
Accrued interest receivable	6,765	7,261
Financial liabilities:
Demand deposits	786,854	775,506
Time deposits	348,053	346,648
Borrowings	158,321	157,138
Accrued interest payable	708	703
Total Fair Value | Level 1
Assets:
Cash and short-term investments	120,538	103,201
Accrued interest receivable	6,765	7,261
Financial liabilities:
Demand deposits	786,854	775,506
Accrued interest payable	708	703
Total Fair Value | Level 2
Assets:
Securities available for sale	213,079	210,026
Loans held for sale	41,277	52,027
Bank-owned life insurance	15,201	15,103
Financial liabilities:
Time deposits	348,053	346,648
Borrowings	158,321	157,138
Total Fair Value | Level 3
Assets:
Loans, net	963,494	961,546
Interest rate lock commitments | Carrying Value
Assets:
Derivative asset	1,394	663
Interest rate lock commitments | Total Fair Value
Assets:
Derivative asset	1,394	663
Interest rate lock commitments | Total Fair Value | Level 2
Assets:
Derivative asset	1,394	663
Interest Rate Swap | Carrying Value
Assets:
Derivative asset	1,061	1,032
Financial liabilities:
Derivative liabilities	1,061	1,032
Interest Rate Swap | Total Fair Value
Assets:
Derivative asset	1,061	1,032
Financial liabilities:
Derivative liabilities	1,061	1,032
Interest Rate Swap | Total Fair Value | Level 2
Assets:
Derivative asset	1,061	1,032
Financial liabilities:
Derivative liabilities	1,061	1,032
Cash Flow Hedges | Carrying Value
Assets:
Derivative asset	21
Financial liabilities:
Derivative liabilities	11	56
Cash Flow Hedges | Total Fair Value
Assets:
Derivative asset	21
Financial liabilities:
Derivative liabilities	11	56
Cash Flow Hedges | Total Fair Value | Level 2
Assets:
Derivative asset	21
Financial liabilities:
Derivative liabilities	$ 11	$ 56

Business Segments - Segment Rep

Business Segments - Segment Reporting (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)segment	Mar. 31, 2016USD ($)	Dec. 31, 2016USD ($)
Business Segments
Number of Operating Segments | segment	3
Revenues:
Interest income	$ 22,021	$ 21,965
Gains on sales of loans	1,943	1,730
Other noninterest income	4,203	3,433
Total operating income	28,167	27,128
Expenses:
Provision for loan losses	4,400	4,600
Interest expense	2,270	2,262
Salaries and employee benefits	10,669	10,171
Other noninterest expenses	7,176	6,919
Total operating expenses	24,515	23,952
Income (loss) before income taxes	3,652	3,176
Income tax expense (benefit)	921	692
Net income	2,731	2,484
Total assets	1,464,464	1,404,824	$ 1,451,992
Goodwill	14,425	14,425	$ 14,425
Capital expenditures	597	613
Operating Segments | Retail Banking
Revenues:
Interest income	11,972	11,083
Other noninterest income	2,500	2,162
Total operating income	14,472	13,245
Expenses:
Provision for loan losses	100
Interest expense	1,465	1,454
Salaries and employee benefits	6,235	6,008
Other noninterest expenses	4,443	4,432
Total operating expenses	12,243	11,894
Income (loss) before income taxes	2,229	1,351
Income tax expense (benefit)	407	22
Net income	1,822	1,329
Total assets	1,305,717	1,237,374
Goodwill	3,702	3,702
Capital expenditures	379	297
Operating Segments | Mortgage Banking
Revenues:
Interest income	316	310
Gains on sales of loans	1,943	1,730
Other noninterest income	1,087	743
Total operating income	3,346	2,783
Expenses:
Interest expense	88	62
Salaries and employee benefits	1,483	1,184
Other noninterest expenses	1,279	1,001
Total operating expenses	2,850	2,247
Income (loss) before income taxes	496	536
Income tax expense (benefit)	199	214
Net income	297	322
Total assets	56,178	39,924
Capital expenditures	194	169
Operating Segments | Consumer Finance
Revenues:
Interest income	11,206	11,811
Other noninterest income	232	232
Total operating income	11,438	12,043
Expenses:
Provision for loan losses	4,300	4,600
Interest expense	1,907	1,703
Salaries and employee benefits	2,412	2,627
Other noninterest expenses	1,253	1,328
Total operating expenses	9,872	10,258
Income (loss) before income taxes	1,566	1,785
Income tax expense (benefit)	624	703
Net income	942	1,082
Total assets	301,506	292,075
Goodwill	10,723	10,723
Capital expenditures	13	147
Operating Segments | Other
Revenues:
Interest income		1
Other noninterest income	384	296
Total operating income	384	297
Expenses:
Interest expense	283	283
Salaries and employee benefits	539	352
Other noninterest expenses	201	158
Total operating expenses	1,023	793
Income (loss) before income taxes	(639)	(496)
Income tax expense (benefit)	(309)	(247)
Net income	(330)	(249)
Total assets	5,873	5,186
Capital expenditures	11
Eliminations
Revenues:
Interest income	(1,473)	(1,240)
Total operating income	(1,473)	(1,240)
Expenses:
Interest expense	(1,473)	(1,240)
Total operating expenses	(1,473)	(1,240)
Total assets	$ (204,810)	$ (169,735)

Business Segments - Segment Deb

Business Segments - Segment Debt (Details)	3 Months Ended
	Mar. 31, 2017
Mortgage Banking | FHLB Advances
Business Segments
Variable rate, spread (as a percent)	0.50%
Consumer Finance | Minimum
Business Segments
Variable rate, spread (as a percent)	3.80%
Consumer Finance | Maximum
Business Segments
Variable rate, spread (as a percent)	8.00%
Consumer Finance | LIBOR | Minimum
Business Segments
Variable rate, spread (as a percent)	200.00%

Commitments and Financial Ins62

Commitments and Financial Instruments with Off-Balance-Sheet Risk - IRLC and Other Derivatives (Details) - C&F Mortgage	3 Months Ended
	Mar. 31, 2017
Commitments and Financial Instruments with Off-Balance Sheet Risk
Recourse period for early payment default, minimum	90 days
Recourse period for early payment default, maximum	1 year

Commitments and Financial Ins63

Commitments and Financial Instruments with Off-Balance-Sheet Risk - Changes in Allowance for Indemnifications Losses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Change in the allowance for indemnification losses
Provision for indemnifications	$ 36	$ 52
Indemnification reserve for recourse provisions
Change in the allowance for indemnification losses
Allowance, beginning of period	2,303	2,363
Provision for indemnifications	36	52
Allowance, end of period	$ 2,339	$ 2,415

Derivative Financial Instrume64

Derivative Financial Instruments (Details) $ in Thousands	Mar. 31, 2017USD ($)position	Dec. 31, 2016USD ($)position
Derivatives and other information
Notional amount	$ 209,918	$ 181,914
Position | position	619	515
Derivative asset	$ 2,476	$ 1,695
Derivative Liabilities	1,072	1,088
Collateral Pledged	324	323
Not designated as hedges
Derivatives and other information
Notional amount	$ 184,918	$ 156,914
Position | position	616	512
Derivative asset	$ 2,455	$ 1,695
Derivative Liabilities	1,061	1,032
Interest Rate Swap | Designated as Hedging Instrument
Derivatives and other information
Notional amount	$ 25,000	$ 25,000
Position | position	3	3
Derivative asset	$ 21
Derivative Liabilities	11	$ 56
Collateral Pledged	324	323
Matched interest rate swap with borrower | Not designated as hedges
Derivatives and other information
Notional amount	$ 25,048	$ 25,151
Position | position	4	4
Derivative Liabilities	$ 1,061	$ 1,032
Matched interest rate swap with counterparty | Not designated as hedges
Derivatives and other information
Notional amount	$ 25,048	$ 25,151
Position | position	4	4
Derivative asset	$ 1,061	$ 1,032
Interest rate lock commitments | Not designated as hedges
Derivatives and other information
Notional amount	$ 134,822	$ 106,612
Position | position	608	504
Derivative asset	$ 1,394	$ 663

Other Noninterest Expenses (Det

Other Noninterest Expenses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Other Noninterest Expenses
Data processing fees	$ 858	$ 955
Professional fees	706	511
Marketing and advertising expenses	365	376
Travel and educational expenses	286	273
Telecommunication expenses	330	234
Amortization of core deposit intangible	150	206
All other noninterest expenses	1,860	2,030
Total Other Noninterest Expenses	$ 4,555	$ 4,585