C&F Financial (CFFI) 10-Q5 Aug 202020 Q2 Quarterly reportFinancial data

Company Profile

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
Document And Entity Information - shares	Jun. 30, 2020	Aug. 04, 2020
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2020
Document Transition Report	false
Entity File Number	000-23423
Entity Registrant Name	C & F FINANCIAL CORP
Entity Incorporation, State or Country Code	VA
Entity Address, Address Line One	3600 La Grange Parkway
Entity Address, City or Town	Toano
Entity Address, State or Province	VA
Entity Tax Identification Number	54-1680165
Entity Address, Postal Zip Code	23168
City Area Code	804
Local Phone Number	843-2360
Title of 12(b) Security	Common Stock, $1.00 par value per share
Trading Symbol	CFFI
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		3,648,586
Entity Central Index Key	0000913341
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2
Amendment Flag	false

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Jun. 30, 2020	Dec. 31, 2019	[1]
Assets
Cash and due from banks	$ 15,774,000	$ 21,148,000
Interest-bearing deposits in other banks	64,526,000	144,285,000
Total cash and cash equivalents	80,300,000	165,433,000
Securities-available for sale at fair value, amortized cost of $241,178 and $187,759, respectively	247,133,000	189,733,000
Loans held for sale, at fair value	180,137,000	90,500,000
Loans, net of allowance for loan losses of $36,094 and $32,873, respectively	1,292,896,000	1,082,318,000
Restricted stock, at cost	3,209,000	3,257,000
Corporate premises and equipment, net	39,458,000	35,261,000
Other real estate owned, net of valuation allowance of $88 and $88, respectively	1,103,000	1,103,000
Accrued interest receivable	8,104,000	6,776,000
Goodwill	25,191,000	14,425,000
Other intangible assets, net	2,457,000	912,000
Bank-owned life insurance	19,862,000	16,044,000
Net deferred tax asset	12,425,000	11,219,000
Other assets	70,929,000	40,451,000
Total assets	1,983,204,000	1,657,432,000
Deposits
Noninterest-bearing demand deposits	464,703,000	296,985,000
Savings and interest-bearing demand deposits	688,545,000	572,209,000
Time deposits	492,541,000	422,056,000
Total deposits	1,645,789,000	1,291,250,000
Short-term borrowings	22,648,000	16,360,000
Long-term borrowings	43,390,000	119,529,000
Trust preferred capital notes	25,298,000	25,281,000
Accrued interest payable	1,210,000	1,291,000
Other liabilities	61,604,000	38,442,000
Total liabilities	1,799,939,000	1,492,153,000
Commitments and contingent liabilities (Note 11)
Equity
Common stock ($1.00 par value, 8,000,000 shares authorized, 3,647,447 and 3,438,126 shares issued and outstanding, respectively, includes 137,705 and 142,020 of unvested shares, respectively)	3,510,000	3,296,000
Additional paid-in capital	21,055,000	9,503,000
Retained earnings	158,799,000	154,248,000
Accumulated other comprehensive loss, net	(638,000)	(2,249,000)
Equity attributable to C&F Financial Corporation	182,726,000	164,798,000
Noncontrolling interest	539,000	481,000
Total equity	183,265,000	165,279,000
Total liabilities and equity	$ 1,983,204,000	$ 1,657,432,000

[1]	Derived from audited consolidated financial statements.

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Consolidated Balance Sheets
Available-for-sale securities, amortized cost	$ 241,178	$ 187,759
Loans, allowance for loan losses	36,094	32,873
Other real estate owned, valuation allowance	$ 88	$ 88
Common stock par value (in dollars per share)	$ 1	$ 1
Common stock, shares authorized	8,000,000	8,000,000
Common stock, shares issued	3,647,447	3,438,126
Common stock, shares outstanding	3,647,447	3,438,126
Common stock, unvested shares	137,705	142,020

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Consolidated Statements of Income - USD ($) $ in Thousands	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Interest income
Interest and fees on loans	$ 22,204	$ 22,323	$ 45,101	$ 43,243
Interest on interest-bearing deposits and federal funds sold	52	582	650	1,171
Interest and dividends on securities
U.S. government agencies and corporations	120	101	246	202
Mortgage-backed securities	543	567	1,063	1,178
Tax-exempt obligations of states and political subdivisions	513	556	1,009	1,139
Taxable obligations of states and political subdivisions	108	93	200	186
Other	44	54	93	108
Total interest income	23,584	24,276	48,362	47,227
Interest expense
Savings and interest-bearing deposits	355	597	941	1,199
Time deposits	2,131	1,624	4,430	2,930
Borrowings	557	1,120	1,558	2,231
Trust preferred capital notes	287	310	576	595
Total interest expense	3,330	3,651	7,505	6,955
Net interest income	20,254	20,625	40,857	40,272
Provision for loan losses	3,600	1,810	6,250	4,205
Net interest income after provision for loan losses	16,654	18,815	34,607	36,067
Noninterest income
Gains on sales of loans	4,605	2,955	8,281	5,091
Mortgage banking fee income	1,986	1,267	3,291	2,037
Interchange income	1,141	1,071	2,230	2,029
Service charges on deposit accounts	639	944	1,641	1,862
Wealth management services income, net	748	475	1,333	924
Other service charges and fees	394	417	769	715
Net gains on sales, maturities and calls of available for sale securities	3	1	7	5
Other	2,312	1,072	1,024	2,642
Total noninterest income	11,828	8,202	18,576	15,305
Noninterest expenses
Salaries and employee benefits	14,354	11,495	25,171	23,402
Occupancy	2,567	2,148	4,894	4,338
Other	6,871	5,906	13,812	11,486
Total noninterest expenses	23,792	19,549	43,877	39,226
Income before income taxes	4,690	7,468	9,306	12,146
Income tax expense	947	1,626	1,924	2,533
Net income	3,743	5,842	7,382	9,613
Less net (loss) income attributable to noncontrolling interest	(3)	(1)	58	(1)
Net income attributable to C&F Financial Corporation	$ 3,746	$ 5,843	$ 7,324	$ 9,614
Net income per share - basic and diluted (in dollars per share)	$ 1.03	$ 1.69	$ 2.01	$ 2.77

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income		$ 3,743	$ 5,842	$ 7,382	$ 9,613
Defined benefit plan:
Reclassification of recognized net actuarial losses into net income	[1],[2]	57	52	99	94
Related income tax effects		(12)	(11)	(21)	(20)
Amortization of prior service credit into net income	[1],[2]	(17)	(17)	(34)	(34)
Related income tax effects		3	3	7	7
Defined benefit plan, net of tax		31	27	51	47
Cash flow hedges:
Unrealized holding losses arising during the period		(154)	(102)	(2,128)	(210)
Related income tax effects		39	26	547	54
Amortization of hedging gains into net income	[3]	(3)		(6)
Related income tax effects		1		2
Cash flow hedges, net of tax		(117)	(76)	(1,585)	(156)
Securities available for sale:
Unrealized holding gains arising during the period		1,779	1,547	3,988	3,373
Related income tax effects		(373)	(325)	(837)	(708)
Reclassification of net realized gains into net income	[4]	(3)	(1)	(7)	(5)
Related income tax effects				1	1
Securities available for sale, net of tax		1,403	1,221	3,145	2,661
Other comprehensive income, net of tax		1,317	1,172	1,611	2,552
Comprehensive income		5,060	7,014	8,993	12,165
Less comprehensive (loss) income attributable to noncontrolling interest		(3)	(1)	58	(1)
Comprehensive income attributable to C&F Financial Corporation		$ 5,063	$ 7,015	$ 8,935	$ 12,166

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

Consolidated Statements of Shar

Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands	Common Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Loss, Net	Noncontrolling Interest	Total
Balance, beginning of the period at Dec. 31, 2018	$ 3,358	$ 12,752	$ 140,520	$ (4,672)		$ 151,958
Balance, end of period at Mar. 31, 2019	3,337	11,362	143,003	(3,292)	$ 490	154,900
Balance, beginning of the period at Dec. 31, 2018	3,358	12,752	140,520	(4,672)		151,958
Comprehensive income:
Net income (loss)			9,614		(1)	9,613
Other comprehensive income				2,552		2,552
Issuance of noncontrolling interest					490	490
Share-based compensation		767				767
Restricted stock vested	16	(16)
Common stock issued	1	69				70
Common stock purchased	(70)	(3,465)				(3,535)
Cash dividends declared			(2,564)			(2,564)
Balance, end of period at Jun. 30, 2019	3,305	10,107	147,570	(2,120)	489	159,351
Balance, beginning of the period at Mar. 31, 2019	3,337	11,362	143,003	(3,292)	490	154,900
Comprehensive income:
Net income (loss)			5,843		(1)	5,842
Other comprehensive income				1,172		1,172
Share-based compensation		310				310
Restricted stock vested	1	(1)
Common stock issued		34				34
Common stock purchased	(33)	(1,598)				(1,631)
Cash dividends declared			(1,276)			(1,276)
Balance, end of period at Jun. 30, 2019	3,305	10,107	147,570	(2,120)	489	159,351
Balance, beginning of the period at Dec. 31, 2019	3,296	9,503	154,248	(2,249)	481	165,279	[1]
Comprehensive income:
Net income (loss)			7,324		58	7,382
Other comprehensive income				1,611		1,611
Share-based compensation		701				701
Restricted stock vested	16	(16)
Acquisition of Peoples Bankshares, Incorporated	210	11,402				11,612
Common stock issued	2	69				71
Common stock purchased	(14)	(604)				(618)
Cash dividends declared			(2,773)			(2,773)
Balance, end of period at Jun. 30, 2020	3,510	21,055	158,799	(638)	539	183,265
Balance, beginning of the period at Mar. 31, 2020	3,509	20,710	156,438	(1,955)	542	179,244
Comprehensive income:
Net income (loss)			3,746		(3)	3,743
Other comprehensive income				1,317		1,317
Share-based compensation		312				312
Common stock issued	1	33				34
Cash dividends declared			(1,385)			(1,385)
Balance, end of period at Jun. 30, 2020	$ 3,510	$ 21,055	$ 158,799	$ (638)	$ 539	$ 183,265

[1]	Derived from audited consolidated financial statements.

Consolidated Statements of Sh_2

Consolidated Statements of Shareholders' Equity (Parentheticals) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
CONSOLIDATED STATEMENTS OF EQUITY
Cash dividends declared - common stock (in dollars per share)	$ 0.38	$ 0.37	$ 0.76	$ 0.74

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	6 Months Ended
Consolidated Statements of Cash Flows - USD ($)	Jun. 30, 2020		Jun. 30, 2019
Operating activities:
Net income	$ 7,382,000		$ 9,613,000
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation	1,791,000		1,826,000
Provision for loan losses	6,250,000		4,205,000
Share-based compensation	701,000		767,000
Pension expense	396,000		324,000
Accretion of certain acquisition-related discounts, net	(1,972,000)		(1,638,000)
Amortization of intangible assets	166,000		141,000
Net realized gains on sales, maturities and calls of securities available for sale	(7,000)		(5,000)
Net realized losses on sale of corporate premises and equipment	509,000		11,000
Accretion of discounts and amortization of premiums on securities, net	941,000		811,000
Income from bank-owned life insurance	(206,000)		(168,000)
Proceeds from sales of loans held for sale	624,112,000		342,531,000
Origination of loans held for sale	(698,740,000)		(385,581,000)
Gains on sales of loans held for sale	(8,281,000)		(5,091,000)
Other losses, net	305,000		23,000
Change in other assets and liabilities:
Accrued interest receivable	(898,000)		207,000
Other assets	929,000		1,731,000
Accrued interest payable	(341,000)		356,000
Other liabilities	208,000		2,425,000
Net cash used in operating activities	(66,755,000)		(27,512,000)
Investing activities:
Acquisition of Peoples Bankshares, Incorporated	19,101,000
Disposition of assets related to business combination	8,004,000
Proceeds from sales, maturities and calls of securities available for sale and payments on mortgage-backed securities	70,780,000		33,639,000
Purchases of securities available for sale	(107,964,000)		(16,594,000)
Purchases of time deposits, net	(6,464,000)
Repayments on loans held for investment by non-bank affiliates	62,462,000		60,675,000
Purchases of loans held for investment by non-bank affiliates	(53,013,000)		(77,356,000)
Net increase in community banking loans held for investment	(102,276,000)		(14,717,000)
Proceeds from sales of other real estate owned	281,000		521,000
Purchases of corporate premises and equipment	(3,453,000)		(1,471,000)
Changes in collateral posted with other financial institutions, net	(9,270,000)		(2,100,000)
Other investing activities, net	38,000		8,000
Net cash used in investing activities	(121,774,000)		(17,395,000)
Financing activities:
Net increase (decrease) in demand and savings deposits	189,256,000		(21,409,000)
Net (decrease) increase in time deposits	(6,394,000)		49,957,000
Net increase in short-term borrowings	6,288,000		1,927,000
Repayments of long-term borrowings	(82,553,000)
Repurchases of common stock	(355,000)		(3,288,000)
Cash dividends paid	(2,773,000)		(2,564,000)
Other financing activities, net	(73,000)		(74,000)
Net cash provided by financing activities	103,396,000		24,549,000
Net decrease in cash and cash equivalents	(85,133,000)		(20,358,000)
Cash and cash equivalents at beginning of periods	165,433,000	[1]	115,013,000
Cash and cash equivalents at end of period	80,300,000		94,655,000
Supplemental cash flow disclosures:
Interest paid	8,010,000		6,581,000
Income taxes paid	2,130,000		546,000
Supplemental disclosure of noncash investing and financing activities
Value of shares withheld at vesting for employee taxes	263,000		247,000
Liabilities assumed to acquire right of use assets at lease commencement	$ 2,778,000		1,048,000
Issuance of noncontrolling interest			$ 490,000

[1]	Derived from audited consolidated financial statements.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
Summary of Significant Accounting Policies	Jun. 30, 2020
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	C&F FINANCIAL CORPORATION AND SUBSIDIARIES NOTE S TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) NOTE 1: Summary of Significant Accounting Policies Principles of Consolidation: The unaudited consolidated financial statements include the accounts of C&F Financial Corporation (the Corporation) and its direct wholly-owned subsidiary, Citizens and Farmers Bank (the Bank or C&F Bank) and indirect subsidiaries that are wholly-owned or controlled. Subsidiaries that are less than wholly owned are fully consolidated if they are controlled by the Corporation or one of its subsidiaries, and the portion of any subsidiary not owned by the Corporation is reported as noncontrolling interest. All significant intercompany accounts and transactions have been eliminated in consolidation. In addition, the Corporation owns all of the common stock of C&F Financial Statutory Trust I, C&F Financial Statutory Trust II and Central Virginia Bankshares Statutory Trust I, all of which are unconsolidated subsidiaries. The subordinated debt owed to these trusts is reported as liabilities of the Corporation. The accounting and reporting policies of the Corporation conform to U.S. GAAP and to predominant practices within the banking industry. Nature of Operations: C&F Bank has five wholly-owned subsidiaries: C&F Mortgage Corporation (C&F Mortgage), C&F Finance Company (C&F Finance), C&F Wealth Management Corporation (C&F Wealth Management), C&F Insurance Services, Inc. and CVB Title Services, Inc., all incorporated under the laws of the Commonwealth of Virginia. C&F Mortgage, organized in September 1995, 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 Mortgage owns a 51 percent interest in C&F Select LLC, which was organized in January 2019 and is also engaged in the business of originating and selling residential mortgages. C&F Finance, acquired in September 2002, is a finance company purchasing automobile, marine and recreational vehicle (RV) loans through indirect lending programs. C&F Wealth Management, organized in April 1995, is a full-service brokerage firm offering a comprehensive range of wealth management services and insurance products through third-party service providers. C&F Insurance Services, Inc., was organized in July 1999, for the primary purpose of owning an equity interest in an independent insurance agency that operates in Virginia and North Carolina. CVB Title Services, Inc. was organized for the primary purpose of owning an equity interest in a full service title and settlement agency. Business segment data is presented in Note 10. Basis of Presentation: The outbreak of the novel coronavirus and the resulting COVID-19 pandemic has caused a significant disruption in economic activity worldwide, including in market areas served by the Corporation. Estimates for the allowance for loan losses at June 30, 2020 include losses related to the pandemic. The Corporation expects that the pandemic will continue to have an effect on its results of operations, including resulting in additional provision for loan losses in future periods. It is unknown how long these conditions will last and what the ultimate financial impact will be to the Corporation. Depending on the severity of the economic consequences of the pandemic, the Corporation’s goodwill may become impaired. Reclassification: Business Combination: Derivative Financial Instruments: Leases: The Corporation’s leases comprise primarily operating leases of real estate and office equipment in which the Corporation or one of its subsidiaries is the lessee. In the second quarter of 2020, the Corporation entered into a new lease of real estate which is classified as a finance lease. The right of use asset and lease liability were measured at June 30, December 31, (Dollars in thousands) 2020 2019 Operating leases: Right of use assets $ 2,491 $ 2,785 Lease liabilities 2,597 2,813 Finance leases: Right of use assets $ 2,172 $ — Lease liabilities 2,185 — Income Taxes: Share-Based Compensation: A summary of activity for restricted stock awards during the first six months of 2020 and 2019 is presented below: 2020 Weighted- Average Grant Date Shares Fair Value Unvested, December 31, 2019 142,020 $ 48.88 Granted 14,650 53.22 Vested (16,230) 39.97 Forfeited (2,735) 5.89 Unvested, June 30, 2020 137,705 50.33 2019 Weighted- Average Grant Date Shares Fair Value Unvested, December 31, 2018 139,455 $ 45.75 Granted 16,100 51.73 Vested (16,290) 41.08 Forfeited (410) 53.28 Unvested, June 30, 2019 138,855 46.97 Paycheck Protection Program: Recently Adopted Accounting Pronouncements: On January 1, 2020, the Corporation adopted Accounting Standards Update (ASU) 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement.” Recent Significant Accounting Pronouncements: In June 2016, the Financial Accounting Standards Board (FASB) issued ASU 2016-13, “ Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments Financial Instruments – Credit Losses (Topic 326): Targeted Transition Relief Financial Instruments—Credit losses (Topic 326), Derivatives and hedging (Topic 815), and Leases (Topic 842)—Effective dates, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Financial Instruments-Credit Losses (Topic 326) and Leases (Topic 842) Codification Improvements to Financial Instruments The new standard will be effective for the Corporation beginning on January 1, 2023. Early adoption of the new standard is permitted. The amendments of ASC 326, upon adoption, will be applied on a modified retrospective basis, with the cumulative effect of adopting the new standard being recorded as an adjustment to opening retained earnings in the period of adoption. The Corporation has established a working group to prepare for and implement changes related to ASC 326 and has gathered historical loan loss data for purposes of evaluating appropriate portfolio segmentation and modeling methods under the standard. The Corporation has performed procedures to validate the historical loan loss data to ensure its suitability and reliability for purposes of developing an estimate of expected credit losses under ASC 326. The Corporation has engaged a vendor to assist in modeling expected lifetime losses under ASC 326, and is continuing to develop and refine an approach to estimating the allowance for credit losses. The adoption of ASC 326 will result in significant changes to the Corporation’s consolidated financial statements, which may include changes in the level of the allowance for credit losses that will be considered adequate, a reduction in total equity and regulatory capital of C&F Bank, differences in the timing of recognizing changes to the allowance for credit losses and expanded disclosures about the allowance for credit losses. The Corporation has not yet determined an estimate of the effect of these changes. The adoption of the standard will also result in significant changes in the Corporation’s internal control over financial reporting related to the allowance for credit losses. In August 2018, the FASB issued ASU 2018-14, “Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans.” Other accounting standards that have been issued by the FASB or other standards-setting bodies are not currently expected to have a material effect on the Corporation’s financial position, results of operations or cash flows.

Business Combination

Business Combination	6 Months Ended
Business Combination	Jun. 30, 2020
Business Combination
Business Combination	NOTE 2: Business Combination On January 1, 2020, the Corporation completed its acquisition of Peoples. Peoples shareholders received 0.5366 shares of the Corporation’s common stock and $27.00 in cash for each share of Peoples common stock, with cash paid in lieu of any fractional shares of the Corporation’s common stock. In connection with the transaction, the Corporation paid aggregate cash consideration of $10.58 million and issued 209,871 shares of its common stock to the shareholders of Peoples. The Corporation accounted for the acquisition using the acquisition method of accounting in accordance with ASC 805, Business Combinations The following table presents as of January 1, 2020 the total consideration paid by the Corporation in connection with the acquisition of Peoples, the fair values of the assets acquired and liabilities assumed, and the resulting goodwill. Amounts Recognized as of (Dollars in thousands) January 1, 2020 Purchase price: Cash paid $ 10,579 Common stock issued 11,612 Total purchase price $ 22,191 Identifiable assets acquired: Cash and cash equivalents $ 29,680 Securities available for sale 17,169 Loans 124,195 Accrued interest receivable 430 Corporate premises and equipment 3,105 Other real estate owned 281 Core deposit intangible asset 1,711 Bank-owned life insurance 3,591 Investment in small business investment company 1,493 Other receivables 5,234 Other assets 3,658 Total identifiable assets acquired 190,547 Identifiable liabilities assumed: Demand and savings deposits 94,798 Time deposits 77,018 Borrowings 4,245 Accrued interest payable 260 Salaries, benefits and deferred compensation 2,054 Other liabilities 747 Total identifiable liabilities assumed 179,122 Net identifiable assets assumed $ 11,425 Goodwill resulting from acquisition $ 10,766 In connection with the acquisition, the Corporation recorded approximately $10.77 million of goodwill and $1.71 million of other intangible assets related to the core deposits of Peoples. The goodwill arising from the acquisition of Peoples is not deductible for income taxes. The core deposit intangible asset (CDI) will be amortized over a period of 15 years using a declining balance method. Loans acquired from Peoples had aggregate outstanding principal of $131.92 million and an estimated fair value of $124.20 million. The discount between the outstanding principal balance and fair value represents expected credit losses and adjustments for market interest rates. Under the acquisition method, the allowance for loan losses recorded in the books of Peoples in the amount of $2.87 million was not carried over into the books of the Corporation. Loans that have evidence of deterioration in credit quality since origination are categorized as purchased credit impaired (PCI). PCI loans acquired from Peoples included medical student loans with an outstanding principal balance of $4.28 million and a fair value of $635,000 at January 1, 2020, which were purchased by Peoples and the performance of which was previously backed by surety bonds. The surety bonds were terminated in 2018 when the issuer of the bond was placed into liquidation by its insurance regulator, and replacement surety bond coverage has not been obtained. Information about PCI loans acquired from Peoples as of January 1, 2020 is as follows: (Dollars in thousands) January 1, 2020 Contractual principal and interest due $ 20,310 Nonaccretable difference (7,679) Expected cash flows 12,631 Accretable yield (3,372) Purchase credit impaired loans - estimated fair value $ 9,259 Fair values of the major categories of assets acquired and liabilities assumed were determined as follows: Loans: Core Deposit Intangible: Deposits: The following table presents certain unaudited pro forma information as if the acquisition had taken place on January 1, 2019. These results combine the historical results of Peoples and the Corporation for the period prior to the merger. While certain adjustments were made for estimated effects resulting from the application of the acquisition method, including certain fair value adjustments, this pro forma information is not indicative of what would have occurred had the acquisition actually taken place on January 1, 2019. Pro forma adjustments for the three and six months ended June 30, 2019 include the net impact of accretion of loan discounts related to market interest rates, amortization of premiums on deposits and borrowings, amortization of intangible assets and related income taxes. Unaudited pro forma net income for the three and six months ended June 30, 2019 include after tax merger related expenses of $28,000 recorded by Peoples, or $(0.01) per share. Additionally, the Corporation expects to achieve further operational cost savings and other efficiencies as a result of the acquisition which are not reflected in the unaudited pro forma amounts below. Unaudited Pro Forma Unaudited Pro Forma Three Months Ended Six Months Ended (Dollars in thousands, except per share amounts) June 30, 2019 June 30, 2019 Total revenues (net interest income plus nonintererest income) $ 30,808 $ 59,463 Net income $ 5,969 $ 10,258 Net income per share, basic and diluted $ 1.63 $ 2.78 The revenue and earnings amounts specific to Peoples since the acquisition date that are included in the consolidated results for 2020 are not readily determinable. The disclosures of these amounts are impracticable due to the merging of certain processes and systems at the acquisition date. Merger related expenses associated with the acquisition of Peoples were $439,000 ($347,000 after income taxes) for the three months ended June 30, 2020, $1.40 million ($1.13 million after income taxes) for the six months ended June 30, 2020 and $2.10 million ($1.78 million after income taxes) in the aggregate through June 30, 2020. There were no merger related expenses during the three and six months ended June 30, 2019. These costs included the integration of systems and operations and legal and consulting expenses, which have been expensed as incurred. The Corporation believes that any further merger related expenses incurred in future periods will not be significant to the Corporation as a whole.

Securities

Securities	6 Months Ended
Securities	Jun. 30, 2020
Securities
Securities	NOTE 3: Securities The Corporation’s debt securities, all of which are classified as available for sale, are summarized as follows: June 30, 2020 Gross Gross Amortized Unrealized Unrealized (Dollars in thousands) Cost Gains Losses Fair Value U.S. government agencies and corporations $ 37,068 $ 153 $ (16) $ 37,205 Mortgage-backed securities 102,749 3,500 — 106,249 Obligations of states and political subdivisions 101,361 2,321 (3) 103,679 $ 241,178 $ 5,974 $ (19) $ 247,133 December 31, 2019 Gross Gross Amortized Unrealized Unrealized (Dollars in thousands) Cost Gains Losses Fair Value U.S. government agencies and corporations $ 21,454 $ 3 $ (17) $ 21,440 Mortgage-backed securities 85,649 979 (43) 86,585 Obligations of states and political subdivisions 80,656 1,111 (59) 81,708 $ 187,759 $ 2,093 $ (119) $ 189,733 The amortized cost and estimated fair value of securities at June 30, 2020, by the earlier of contractual maturity or expected maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to prepay obligations with or without call or prepayment penalties. June 30, 2020 Amortized (Dollars in thousands) Cost Fair Value Due in one year or less $ 63,267 $ 63,568 Due after one year through five years 139,191 143,546 Due after five years through ten years 36,488 37,698 Due after ten years 2,232 2,321 $ 241,178 $ 247,133 The following table presents the gross realized gains and losses on and the proceeds from the sales, maturities and calls of securities. During the six months ended June 30, 2020, $5.99 million in proceeds were related to sales of assets acquired in the acquisition of Peoples. There were no sales of securities during the three and six months ended June 30, 2019. Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2020 2019 2020 2019 Realized gains from sales, maturities and calls of securities: Gross realized gains $ 3 $ 1 $ 7 $ 5 Gross realized losses — — — — Net realized gains $ 3 $ 1 $ 7 $ 5 Proceeds from sales, maturities, calls and paydowns of securities $ 31,717 $ 17,982 $ 70,780 $ 33,639 The Corporation pledges securities primarily to secure public deposits and repurchase agreements. Securities with an aggregate amortized cost of $118.55 million and an aggregate fair value of $122.58 million were pledged at June 30, 2020. Securities with an aggregate amortized cost of $126.22 million and an aggregate fair value of $127.47 million were pledged at December 31, 2019. Securities in an unrealized loss position at June 30, 2020, by duration of the period of the unrealized loss, are shown below. Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Loss Value Loss Value Loss U.S. government agencies and corporations $ 14,320 $ 16 $ — $ — $ 14,320 $ 16 Mortgage-backed securities — — — — — — Obligations of states and political subdivisions 1,412 3 — — 1,412 3 Total temporarily impaired securities $ 15,732 $ 19 $ — $ — $ 15,732 $ 19 There were 11 debt securities totaling $15.73 million of aggregate fair value considered temporarily impaired at June 30, 2020. The primary cause of the temporary impairments in the Corporation’s investments in debt securities was fluctuations in interest rates. The Corporation’s mortgage-backed securities are entirely issued by either U.S. government agencies or U.S. government-sponsored enterprises. Collectively, these entities provide a guarantee, which is either explicitly or implicitly supported by the full faith and credit of the U.S. government, that investors in such mortgage-backed securities will receive timely principal and interest payments. At June 30, 2020, all of the Corporation’s obligations of states and political subdivisions that were in a net unrealized loss position were rated “A” or better by Standard & Poor's or Moody's Investors Service. The Corporation considers these 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 June 30, 2020 and no other-than-temporary impairment loss has been recognized in net income. Securities in an unrealized loss position at December 31, 2019, 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 $ 6,256 $ 11 $ 4,094 $ 6 $ 10,350 $ 17 Mortgage-backed securities 4,099 7 10,166 36 14,265 43 Obligations of states and political subdivisions 9,187 53 1,368 6 10,555 59 Total temporarily impaired securities $ 19,542 $ 71 $ 15,628 $ 48 $ 35,170 $ 119 The Corporation’s investment in restricted stock totaled $3.21 million at June 30, 2020 and consisted of Federal Home Loan Bank (FHLB) stock. Restricted stock is generally viewed as a long-term investment, which is carried at cost because there is no market for the stock other than the FHLBs. Therefore, when evaluating restricted stock for impairment, its value is based on the ultimate recoverability of the par value rather than by recognizing any temporary decline in value. The Corporation did not consider its investment in restricted stock to be other-than-temporarily impaired at June 30, 2020 and no impairment has been recognized.

Loans

Loans	6 Months Ended
Loans	Jun. 30, 2020
Loans
Loans	NOTE 4: Loans Major classifications of loans are summarized as follows: June 30, December 31, (Dollars in thousands) 2020 2019 Real estate – residential mortgage $ 205,011 $ 181,295 Real estate – construction 1 72,094 54,246 Commercial, financial and agricultural 2 682,817 500,812 Equity lines 52,697 52,083 Consumer 15,722 13,756 Consumer finance 300,649 312,999 1,328,990 1,115,191 Less allowance for loan losses (36,094) (32,873) Loans, net $ 1,292,896 $ 1,082,318 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 $173,000 and $449,000 of demand deposit overdrafts at June 30, 2020 and December 31, 2019, respectively. Loans acquired in business combinations are recorded in the Consolidated Balance Sheets at fair value at the acquisition date under the acquisition method of accounting. The outstanding principal balance and the carrying amount at June 30, 2020 and December 31, 2019 of loans acquired in business combinations were as follows: June 30, 2020 December 31, 2019 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 $ 18,591 $ 116,971 $ 135,562 $ 6,262 $ 27,839 $ 34,101 Carrying amount Real estate – residential mortgage $ 1,814 $ 22,448 $ 24,262 $ 107 $ 7,035 $ 7,142 Real estate – construction — 3,762 3,762 — — — Commercial, financial and agricultural 1 5,452 74,254 79,706 563 11,338 11,901 Equity lines 77 11,767 11,844 35 8,046 8,081 Consumer 488 2,317 2,805 — 3 3 Total acquired loans $ 7,831 $ 114,548 $ 122,379 $ 705 $ 26,422 $ 27,127 1 Includes acquired loans classified by the Corporation as commercial real estate lending and commercial business lending. The following table presents a summary of the change in the accretable yield of loans classified as purchased credit impaired (PCI): Six Months Ended June 30, (Dollars in thousands) 2020 2019 Accretable yield, balance at beginning of period $ 4,721 $ 5,987 Additions 3,372 — Accretion (1,687) (1,760) Reclassification of nonaccretable difference due to improvement in expected cash flows 923 727 Other changes, net 115 349 Accretable yield, balance at end of period $ 7,444 $ 5,303 Loans on nonaccrual status were as follows: June 30, December 31, (Dollars in thousands) 2020 2019 Real estate – residential mortgage $ 980 $ 1,526 Commercial, financial and agricultural: Commercial business lending — 11 Equity lines 244 229 Consumer 542 118 Consumer finance 369 611 Total loans on nonaccrual status $ 2,135 $ 2,495 The past due status of loans as of June 30, 2020 was as follows: 90+ Days 30 - 59 Days 60 - 89 Days 90+ Days Total Past Due and (Dollars in thousands) Past Due Past Due Past Due Past Due PCI Current 1 Total Loans Accruing Real estate – residential mortgage $ 537 $ 285 $ 880 $ 1,702 $ 1,814 $ 201,495 $ 205,011 $ 291 Real estate – construction: Construction lending — — — — — 56,382 56,382 — Consumer lot lending — — — — — 15,712 15,712 — Commercial, financial and agricultural: Commercial real estate lending 232 — — 232 5,452 415,999 421,683 — Land acquisition and development lending — — — — — 38,121 38,121 — Builder line lending — — — — — 22,172 22,172 — Commercial business lending — — — — — 200,841 200,841 — Equity lines 47 — 50 97 76 52,524 52,697 — Consumer — 57 — 57 489 15,176 15,722 — Consumer finance 5,096 705 369 6,170 — 294,479 300,649 — Total $ 5,912 $ 1,047 $ 1,299 $ 8,258 $ 7,831 $ 1,312,901 $ 1,328,990 $ 291 1 For the purposes of the table above, “Current” includes loans that are 1-29 days past due. The table above includes nonaccrual loans that are current of $649,000, 60-89 days past due of $19,000 and 90+ days past due of $1.04 million, as well as nonaccrual loans that are PCI of $427,000. The past due status of loans as of December 31, 2019 was as follows: 90+ Days 30 - 59 Days 60 - 89 Days 90+ Days Total Past Due and (Dollars in thousands) Past Due Past Due Past Due Past Due PCI Current 1 Total Loans Accruing Real estate – residential mortgage $ 1,428 $ 161 $ 1,016 $ 2,605 $ 107 $ 178,583 $ 181,295 $ — Real estate – construction: Construction lending — — — — — 40,943 40,943 — Consumer lot lending — — — — — 13,303 13,303 — Commercial, financial and agricultural: Commercial real estate lending — — — — 563 325,991 326,554 — Land acquisition and development lending — — — — — 42,891 42,891 — Builder line lending — — — — — 26,373 26,373 — Commercial business lending 73 18 — 91 — 104,903 104,994 — Equity lines 229 56 223 508 35 51,540 52,083 109 Consumer 20 10 — 30 — 13,726 13,756 — Consumer finance 11,034 1,420 611 13,065 — 299,934 312,999 — Total $ 12,784 $ 1,665 $ 1,850 $ 16,299 $ 705 $ 1,098,187 $ 1,115,191 $ 109 1 For the purposes of the table above, “Current” includes loans that are 1-29 days past due. The table above includes nonaccrual loans that are current of $547,000, 30-59 days past due of $197,000, 60-89 days past due of $10,000 and 90+ days past due of $1.74 million. There were no loan modifications during the three months ended June 30, 2020 classified as a troubled debt restructuring (TDR). There was one loan modification during the six months ended June 30, 2020 that was classified as a TDR. This TDR was an equity line with a recorded investment of $84,000 at the time of its modification and included modifications of the loan’s payment structure. There was one loan modification during the three and six months ended June 30, 2019 that was classified as a TDR. This TDR was a consumer loan with a recorded investment of $121,000 at the time of its modification and included a modification of the loan’s interest rate. All TDRs are considered impaired loans and are individually evaluated in the determination of the allowance for loan losses. A TDR payment default occurs when, within 12 months of the original TDR modification, either a full or partial charge-off occurs or a TDR becomes 90 days or more past due. The specific reserve associated with a TDR is reevaluated when a TDR payment default occurs. There were no TDR payment defaults during the three and six months ended June 30, 2020 and 2019. In response to the effects of the COVID-19 pandemic, including economic disruption and adverse impacts to commercial and consumer borrowers, the Bank has accommodated certain borrowers by granting short-term payment deferrals or periods of interest-only payments of up to six months in each case. As of June 30, 2020, the Bank had provided short-term payment deferrals on 200 loans with an aggregate balance of $94.91 million. Generally, a short-term payment deferral does not result in a loan modification being classified as a TDR. Management cannot predict the overall impact of the COVID-19 pandemic on its loan portfolio or the extent of payment deferrals or other modifications that may be granted. Impaired loans, which included TDRs of $3.79 million, and the related allowance at June 30, 2020 were as follows: Recorded Recorded Investment Investment Average Unpaid in Loans in Loans Balance- Interest Principal without with Related Impaired Income (Dollars in thousands) Balance Specific Reserve Specific Reserve Allowance Loans Recognized Real estate – residential mortgage $ 2,892 $ 1,072 $ 1,677 $ 69 $ 2,875 $ 44 Commercial, financial and agricultural: Commercial real estate lending 1,401 — 1,401 72 1,409 37 Equity lines 121 113 — — 120 1 Consumer 126 — 114 107 115 — Total $ 4,540 $ 1,185 $ 3,192 $ 248 $ 4,519 $ 82 Impaired loans, which included TDRs of $4.35 million, and the related allowance at December 31, 2019 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 $ 3,891 $ 2,192 $ 1,479 $ 72 $ 3,506 $ 155 Commercial, financial and agricultural: Commercial real estate lending 1,459 4 1,447 77 1,581 82 Equity lines 31 31 — — 32 2 Consumer 130 — 121 118 123 — Total $ 5,511 $ 2,227 $ 3,047 $ 267 $ 5,242 $ 239

Allowance for Loan Losses

Allowance for Loan Losses	6 Months Ended
Allowance for Loan Losses	Jun. 30, 2020
Allowance for Loan Losses
Allowance for Loan Losses	NOTE 5: Allowance for Loan Losses The following table presents the changes in the allowance for loan losses by major classification during the six months ended June 30, 2020: Real Estate Commercial, Residential Real Estate Financial & Equity Consumer (Dollars in thousands) Mortgage Construction Agricultural Lines Consumer Finance Total Allowance for loan losses: Balance at December 31, 2019 $ 2,080 $ 681 $ 7,121 $ 733 $ 465 $ 21,793 $ 32,873 Provision charged to operations 285 302 1,724 56 33 3,850 6,250 Loans charged off (4) — (18) — (133) (5,422) (5,577) Recoveries of loans previously charged off 64 — 2 — 105 2,377 2,548 Balance at June 30, 2020 $ 2,425 $ 983 $ 8,829 $ 789 $ 470 $ 22,598 $ 36,094 The following table presents the changes in the allowance for loan losses by major classification during the six months ended June 30, 2019: 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, 2018 $ 2,246 $ 727 $ 6,688 $ 1,106 $ 257 $ 22,999 $ 34,023 Provision (credited) charged to operations (68) 23 218 (225) 162 4,095 4,205 Loans charged off (45) — (29) — (162) (6,966) (7,202) Recoveries of loans previously charged off 9 — 3 — 115 2,248 2,375 Balance at June 30, 2019 $ 2,142 $ 750 $ 6,880 $ 881 $ 372 $ 22,376 $ 33,401 The following table presents, as of June 30, 2020, the balance of the allowance for loan losses and the balance of loans by impairment methodology. Real Estate Commercial, Residential Real Estate Financial & Equity Consumer (Dollars in thousands) Mortgage Construction Agricultural Lines Consumer Finance Total Allowance balance attributable to loans: Individually evaluated for impairment $ 69 $ — $ 72 $ — $ 107 $ — $ 248 Collectively evaluated for impairment 2,356 983 8,757 789 363 22,598 35,846 Acquired loans - PCI — — — — — — — Total allowance $ 2,425 $ 983 $ 8,829 $ 789 $ 470 $ 22,598 $ 36,094 Loans: Individually evaluated for impairment $ 2,749 $ — $ 1,401 $ 113 $ 114 $ — $ 4,377 Collectively evaluated for impairment 200,448 72,094 675,964 52,508 15,119 300,649 1,316,782 Acquired loans - PCI 1,814 — 5,452 76 489 — 7,831 Total loans $ 205,011 $ 72,094 $ 682,817 $ 52,697 $ 15,722 $ 300,649 $ 1,328,990 The following table presents, as of December 31, 2019, the balance of the allowance for loan losses, the allowance by impairment methodology, total loans and loans by impairment methodology. Real Estate Commercial, Residential Real Estate Financial & Equity Consumer (Dollars in thousands) Mortgage Construction Agricultural Lines Consumer Finance Total Allowance balance attributable to loans: Individually evaluated for impairment $ 72 $ — $ 77 $ — $ 118 $ — $ 267 Collectively evaluated for impairment 2,008 681 7,044 733 347 21,793 32,606 Acquired loans - PCI — — — — — — — Total allowance $ 2,080 $ 681 $ 7,121 $ 733 $ 465 $ 21,793 $ 32,873 Loans: Individually evaluated for impairment $ 3,671 $ — $ 1,451 $ 31 $ 121 $ — $ 5,274 Collectively evaluated for impairment 177,517 54,246 498,798 52,017 13,635 312,999 1,109,212 Acquired loans - PCI 107 — 563 35 — — 705 Total loans $ 181,295 $ 54,246 $ 500,812 $ 52,083 $ 13,756 $ 312,999 $ 1,115,191 Loans by credit quality indicators as of June 30, 2020 were as follows: Special Substandard (Dollars in thousands) Pass Mention Substandard Nonaccrual Total 1 Real estate – residential mortgage $ 201,678 $ 1,511 $ 842 $ 980 $ 205,011 Real estate – construction: Construction lending 56,382 — — — 56,382 Consumer lot lending 15,712 — — — 15,712 Commercial, financial and agricultural: Commercial real estate lending 393,105 26,125 2,453 — 421,683 Land acquisition and development lending 30,575 7,546 — — 38,121 Builder line lending 22,172 — — — 22,172 Commercial business lending 196,755 4,086 — — 200,841 Equity lines 52,340 105 8 244 52,697 Consumer 15,119 61 — 542 15,722 $ 983,838 $ 39,434 $ 3,303 $ 1,766 $ 1,028,341 1 At June 30, 2020, 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 Peoples of $93.84 million pass rated, $1.77 million special mention, $2.91 million substandard and $427,000 substandard nonaccrual. Non- (Dollars in thousands) Performing Performing Total Consumer finance $ 300,280 $ 369 $ 300,649 Loans by credit quality indicators as of December 31, 2019 were as follows: Special Substandard (Dollars in thousands) Pass Mention Substandard Nonaccrual Total 1 Real estate – residential mortgage $ 177,049 $ 1,839 $ 881 $ 1,526 $ 181,295 Real estate – construction: Construction lending 40,943 — — — 40,943 Consumer lot lending 13,303 — — — 13,303 Commercial, financial and agricultural: Commercial real estate lending 323,218 3,266 70 — 326,554 Land acquisition and development lending 33,870 9,021 — — 42,891 Builder line lending 25,995 378 — — 26,373 Commercial business lending 104,291 692 — 11 104,994 Equity lines 51,662 181 11 229 52,083 Consumer 13,632 6 — 118 13,756 $ 783,963 $ 15,383 $ 962 $ 1,884 $ 802,192 1 At December 31, 2019, the Corporation did not have any loans classified as Doubtful or Loss. Non- (Dollars in thousands) Performing Performing Total Consumer finance $ 312,388 $ 611 $ 312,999

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets	6 Months Ended
Goodwill and Other Intangible Assets	Jun. 30, 2020
Goodwill and Other Intangible Assets
Goodwill and Other Intangible Assets	NOTE 6: Goodwill and Other Intangible Assets The carrying amount of goodwill was $25.19 million and $14.43 million at June 30, 2020 and December 31, 2019, respectively. The following table presents the changes in goodwill during the six months ended June 30, 2020. There were no changes in the recorded balance of goodwill during the three and six months ended June 30, 2019. Community Consumer (Dollars in thousands) Banking Finance Total Balance as of January 1, 2020 $ 3,702 $ 10,723 $ 14,425 Acquisition of Peoples Bankshares, Incorporated 10,766 — 10,766 Balance at June 30, 2020 $ 14,468 $ 10,723 $ 25,191 The Corporation had $2.46 million and $912,000 of other intangible assets as of June 30, 2020 and December 31, 2019, respectively. Other intangible assets were recognized in connection with the core deposits acquired from Peoples in 2020 and customer relationships acquired by C&F Wealth Management in 2016. The following table summarizes the gross carrying amounts and accumulated amortization of other intangible assets: June 30, December 31, 2020 2019 Gross Gross Carrying Accumulated Carrying Accumulated (Dollars in thousands) Amount Amortization Amount Amortization Amortized intangible assets: Core deposit intangibles $ 1,711 $ (86) $ — $ — Other intangibles 1,405 (573) 1,405 (493) Total $ 3,116 $ (659) $ 1,405 $ (493) Amortization expense was $83,000 and $63,000 for the three months ended June 30, 2020 and 2019, respectively and $166,000 and $141,000 for the six months ended June 30, 2020 and 2019, respectively.

Equity, Other Comprehensive Inc

Equity, Other Comprehensive Income and Earnings Per Share	6 Months Ended
Equity, Other Comprehensive Income and Earnings Per Share	Jun. 30, 2020
Equity, Other Comprehensive Income and Earnings Per Share
Equity, Other Comprehensive Income and Earnings Per Share	NOTE 7: Equity, Other Comprehensive Income and Earnings Per Share Equity and Noncontrolling Interest During the six months ended June 30, 2020, the Corporation repurchased 8,963 shares of its common stock for an aggregate cost of $355,000 under share repurchase programs authorized by its Board of Directors. During the three and six months ended June 30, 2019, the Corporation repurchased 32,779 and 65,186 shares of its common stock, respectively, for an aggregate cost of $1.62 million and $3.29 million under the share repurchase programs. The Corporation did not repurchase any of its common stock during the three months ended June 30, 2020. Additionally during the six months ended June 30, 2020 and 2019, the Corporation withheld 5,069 shares and 4,842 shares of its common stock, respectively, from employees to satisfy tax withholding obligations upon vesting of restricted stock. The Corporation’s current share repurchase program expired on May 31, 2020 and has not been renewed or extended at this time. In the first quarter of 2019, C&F Select LLC, a subsidiary of C&F Mortgage, issued a 49 percent ownership interest to an unrelated investor. In exchange for this noncontrolling interest in C&F Select LLC, C&F Bank received a note receivable from the investor for $490,000, which is included in loans in the Consolidated Balance Sheets and is secured by cash deposits at C&F Bank. Accumulated Other Comprehensive Loss, Net The following table presents the cumulative balances of the components of accumulated other comprehensive loss, net of deferred taxes of $303,000 and $604,000 as of June 30, 2020 and December 31, 2019, respectively. June 30, December 31, (Dollars in thousands) 2020 2019 Net unrealized gains on securities $ 4,705 $ 1,560 Net unrecognized losses on cash flow hedges (1,654) (69) Net unrecognized losses on defined benefit plan (3,689) (3,740) Total accumulated other comprehensive loss, net $ (638) $ (2,249) Earnings Per Share (EPS) The components of the Corporation’s EPS calculations are as follows: Three Months Ended June 30, (Dollars in thousands) 2020 2019 Net income attributable to C&F Financial Corporation $ 3,746 $ 5,843 Weighted average shares outstanding — 3,647,707 3,463,277 Six Months Ended June 30, (Dollars in thousands) 2020 2019 Net income attributable to C&F Financial Corporation $ 7,324 $ 9,614 Weighted average shares outstanding — 3,646,161 3,473,875 The Corporation has applied the two-class method of computing basic and diluted EPS for each period presented because the Corporation’s unvested restricted shares outstanding contain rights to nonforfeitable dividends equal to dividends on the Corporation’s common stock. Accordingly, the weighted average number of shares used in the calculation of basic and diluted EPS includes both vested and unvested shares outstanding.

Employee Benefit Plans

Employee Benefit Plans	6 Months Ended
Employee Benefit Plans	Jun. 30, 2020
Employee Benefit Plans
Employee Benefit Plans	NOTE 8: Employee Benefit Plans The following table summarizes the components of net periodic benefit cost for the Bank’s non-contributory cash balance pension plan. Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2020 2019 2020 2019 Components of net periodic benefit cost: Service cost, included in salaries and employee benefits $ 415 $ 316 $ 801 $ 609 Other components of net periodic benefit cost: Interest cost 140 151 275 304 Expected return on plan assets (371) (319) (745) (649) Amortization of prior service credit (17) (17) (34) (34) Amortization of net obligation at transition — — — — Recognized net actuarial losses 57 52 99 94 Other components of net periodic benefit cost, included in other noninterest income (191) (133) (405) (285) Net periodic benefit cost $ 224 $ 183 $ 396 $ 324

Fair Value of Assets and Liabil

Fair Value of Assets and Liabilities	6 Months Ended
Fair Value of Assets and Liabilities	Jun. 30, 2020
Fair Value of Assets and Liabilities
Fair Value of Assets and Liabilities	NOTE 9: Fair Value of Assets and Liabilities Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. U.S. GAAP requires that valuation techniques maximize the use of observable inputs and minimize the use of unobservable inputs. U.S. GAAP also establishes a fair value hierarchy which prioritizes the valuation inputs into three broad levels. Based on the underlying inputs, each fair value measurement in its entirety is reported in one of the three levels. These levels are: ● Level 1—Valuation is based upon quoted prices for identical instruments traded in active markets. Level 1 assets and liabilities include debt securities traded in an active exchange market, as well as U.S. Treasury securities. ● Level 2—Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. ● Level 3—Valuation is determined using model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect the Corporation’s estimates of assumptions that market participants would use in pricing the respective asset or liability. Valuation techniques may include the use of pricing models, discounted cash flow models and similar techniques. U.S. GAAP allows an entity the irrevocable option to elect fair value (the fair value option) for the initial and subsequent measurement for certain financial assets and liabilities on a contract-by-contract basis. The Corporation has elected to use fair value accounting for its entire portfolio of loans held for sale (LHFS). Assets and Liabilities Measured at Fair Value on a Recurring Basis The following describes the valuation techniques and inputs used by the Corporation in determining the fair value of certain assets recorded at fair value on a recurring basis in the financial statements. Securities available for sale. evaluated based upon a hierarchy of security specific information and market data regarding that security or securities with similar characteristics. Investments in small business investment company funds. Loans held for sale. Derivative asset - IRLCs. Derivative asset/liability – interest rate swaps on loans. Derivative asset/liability – cash flow hedges. Derivative asset/liability – forward sales of TBA securities. The following table presents the balances of financial assets and liabilities measured at fair value on a recurring basis. June 30, 2020 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 $ — $ 37,205 $ — $ 37,205 Mortgage-backed securities — 106,249 — 106,249 Obligations of states and political subdivisions — 103,679 — 103,679 Total securities available for sale — 247,133 — 247,133 Loans held for sale — 180,137 — 180,137 Derivatives IRLC — 3,701 — 3,701 Interest rate swaps on loans — 9,743 — 9,743 Total assets $ — $ 440,714 $ — $ 440,714 Liabilities: Derivatives Interest rate swaps on loans $ — $ 9,743 $ — $ 9,743 Cash flow hedges — 2,273 — 2,273 Forward sales of TBA securities — 93 — 93 Total liabilities $ — $ 12,109 $ — $ 12,109 December 31, 2019 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 $ — $ 21,440 $ — $ 21,440 Mortgage-backed securities — 86,585 — 86,585 Obligations of states and political subdivisions — 81,708 — 81,708 Total securities available for sale — 189,733 — 189,733 Loans held for sale — 90,500 — 90,500 Derivatives IRLC — 1,083 — 1,083 Interest rate swaps on loans — 2,462 — 2,462 Total assets $ — $ 283,778 $ — $ 283,778 Liabilities: Derivatives Interest rate swaps on loans $ — $ 2,462 $ — $ 2,462 Cash flow hedges — 145 — 145 Forward sales of TBA securities — 25 — 25 Total liabilities $ — $ 2,632 $ — $ 2,632 Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis The Corporation may be required, from time to time, to measure and recognize certain assets at fair value on a nonrecurring basis in accordance with U.S. GAAP. The following describes the valuation techniques and inputs used by the Corporation in determining the fair value of certain assets recorded at fair value on a nonrecurring basis in the financial statements. Impaired loans. Impaired loans that are measured based on expected future cash flows discounted at the loan’s effective interest rate rather than the market rate of interest, are not recorded at fair value and are therefore excluded from fair value disclosure requirements. OREO. The following table presents the balances of assets measured at fair value on a nonrecurring basis. At June 30, 2020 there were no impaired loans that were measured at fair value. June 30, 2020 Fair Value Measurements Using Assets at Fair (Dollars in thousands) Level 1 Level 2 Level 3 Value Other real estate owned, net $ — $ — $ 268 $ 268 Total $ — $ — $ 268 $ 268 December 31, 2019 Fair Value Measurements Using Assets at Fair (Dollars in thousands) Level 1 Level 2 Level 3 Value Impaired loans, net $ — $ — $ 102 $ 102 Other real estate owned, net — — 268 268 Total $ — $ — $ 370 $ 370 The following table presents quantitative information about Level 3 fair value measurements for financial assets measured at fair value on a nonrecurring basis: Fair Value Measurements at June 30, 2020 (Dollars in thousands) Fair Value Valuation Technique(s) Unobservable Inputs Range (Weighted Average) 1 Other real estate owned, net $ 268 Appraisals Discount to reflect current market conditions and estimated selling costs 33% -75% (45%) Total $ 268 1 The weighted average of unobservable inputs is calculated based on the relative asset fair values. Fair Value of Financial Instruments FASB ASC 825, Financial Instruments The following tables reflect the carrying amounts and estimated fair values of the Corporation’s financial instruments whether or not recognized on the Consolidated Balance Sheets at fair value. Carrying Fair Value Measurements at June 30, 2020 Using Total Fair (Dollars in thousands) Value Level 1 Level 2 Level 3 Value Financial assets: Cash and short-term investments $ 80,300 $ 80,300 $ — $ — $ 80,300 Securities available for sale 247,133 — 247,133 — 247,133 Loans, net 1,292,896 — — 1,299,598 1,299,598 Loans held for sale 180,137 — 180,137 — 180,137 Derivatives IRLC 3,701 — 3,701 — 3,701 Interest rate swaps on loans 9,743 — 9,743 — 9,743 Bank-owned life insurance 19,862 — 19,862 — 19,862 Accrued interest receivable 8,104 8,104 — — 8,104 Financial liabilities: Demand deposits 1,153,248 1,153,248 — — 1,153,248 Time deposits 492,541 — 501,932 — 501,932 Borrowings 91,336 — 92,667 — 92,667 Derivatives Cash flow hedges 2,273 — 2,273 — 2,273 Interest rate swaps on loans 9,743 — 9,743 — 9,743 Forward sales of TBA securities 93 — 93 — 93 Accrued interest payable 1,210 1,210 — — 1,210 Carrying Fair Value Measurements at December 31, 2019 Using Total Fair (Dollars in thousands) Value Level 1 Level 2 Level 3 Value Financial assets: Cash and short-term investments $ 165,433 $ 165,433 $ — $ — $ 165,433 Securities available for sale 189,733 — 189,733 — 189,733 Loans, net 1,082,318 — — 1,082,783 1,082,783 Loans held for sale 90,500 — 90,500 — 90,500 Derivatives IRLC 1,083 — 1,083 — 1,083 Interest rate swaps on loans 2,462 — 2,462 — 2,462 Bank-owned life insurance 16,044 — 16,044 — 16,044 Accrued interest receivable 6,776 6,776 — — 6,776 Financial liabilities: Demand deposits 869,194 869,194 — — 869,194 Time deposits 422,056 — 423,605 — 423,605 Borrowings 161,170 — 154,964 — 154,964 Derivatives Cash flow hedges 145 — 145 — 145 Interest rate swaps on loans 2,462 — 2,462 — 2,462 Forward sales of TBA securities 25 — 25 25 Accrued interest payable 1,291 1,291 — — 1,291

Business Segments

Business Segments	6 Months Ended
Business Segments	Jun. 30, 2020
Business Segments
Business Segments	NOTE 10: Business Segments The Corporation operates in a decentralized fashion in three principal business segments: community banking, mortgage banking and consumer finance. Revenues from community banking operations consist primarily of interest earned on loans and investment securities and fees earned on deposit accounts and debit card interchange activity. Previously, the community banking segment was referred to as the retail banking segment. Mortgage banking operating revenues consist principally of gains on sales of loans in the secondary market, mortgage banking fee income related to loan originations, and interest earned on mortgage loans held for sale. Revenues from consumer finance consist primarily of interest earned on purchased retail installment sales contracts. C&F Wealth Management derives revenues from offering wealth management services and insurance products through third-party service providers. The Corporation’s revenues and expenses are comprised primarily of interest expense associated with the Corporation’s trust preferred capital notes, general corporate expenses, and changes in the value of the rabbi trust and deferred compensation liability related to its nonqualified deferred compensation plan. The results of C&F Wealth Management and the Corporation are not significant to the Corporation on a consolidated basis and are included in “Other.” Three Months Ended June 30, 2020 Community Mortgage Consumer (Dollars in thousands) Banking Banking Finance Other Eliminations Consolidated Revenues: Interest income $ 14,894 $ 1,097 $ 9,689 $ — $ (2,096) $ 23,584 Gains on sales of loans — 4,605 — — — 4,605 Other noninterest income 2,221 2,387 80 2,535 — 7,223 Total operating income 17,115 8,089 9,769 2,535 (2,096) 35,412 Expenses: Provision for loan losses 1,400 — 2,200 — — 3,600 Interest expense 2,718 280 2,090 338 (2,096) 3,330 Salaries and employee benefits 7,640 2,272 2,134 2,308 — 14,354 Depreciation and amortization 829 73 45 43 — 990 Other noninterest expenses 5,020 2,166 1,057 205 — 8,448 Total operating expenses 17,607 4,791 7,526 2,894 (2,096) 30,722 Income (loss) before income taxes (492) 3,298 2,243 (359) — 4,690 Income tax expense (benefit) (560) 977 605 (75) — 947 Net income (loss) $ 68 $ 2,321 $ 1,638 $ (284) $ — $ 3,743 Total assets $ 1,860,367 $ 192,987 $ 301,372 $ 21,834 $ (393,356) $ 1,983,204 Capital expenditures $ 1,568 $ 32 $ 305 $ — $ — $ 1,905 Three Months Ended June 30, 2019 Community Mortgage Consumer (Dollars in thousands) Banking Banking Finance Other Eliminations Consolidated Revenues: Interest income $ 15,419 $ 669 $ 10,365 $ 2 $ (2,179) $ 24,276 Gains on sales of loans — 2,955 — — — 2,955 Other noninterest income 2,893 1,335 110 909 — 5,247 Total operating income 18,312 4,959 10,475 911 (2,179) 32,478 Expenses: Provision for loan losses 110 — 1,700 — — 1,810 Interest expense 2,493 409 2,618 310 (2,179) 3,651 Salaries and employee benefits 6,873 1,611 2,069 942 — 11,495 Depreciation and amortization 758 59 50 (35) — 832 Other noninterest expenses 4,382 1,276 1,361 203 — 7,222 Total operating expenses 14,616 3,355 7,798 1,420 (2,179) 25,010 Income (loss) before income taxes 3,696 1,604 2,677 (509) — 7,468 Income tax expense (benefit) 625 422 728 (149) — 1,626 Net income (loss) $ 3,071 $ 1,182 $ 1,949 $ (360) $ — $ 5,842 Total assets $ 1,386,332 $ 101,554 $ 309,705 $ 19,696 $ (249,291) $ 1,567,996 Capital expenditures $ 566 $ 52 $ 32 $ 67 $ — $ 717 Six Months Ended June 30, 2020 Community Mortgage Consumer (Dollars in thousands) Banking Banking Finance Other Eliminations Consolidated Revenues: Interest income $ 30,809 $ 1,758 $ 19,790 $ — $ (3,995) $ 48,362 Gains on sales of loans — 8,281 — — — 8,281 Other noninterest income 4,853 3,998 197 1,247 — 10,295 Total operating income 35,662 14,037 19,987 1,247 (3,995) 66,938 Expenses: Provision for loan losses 2,400 — 3,850 — — 6,250 Interest expense 5,862 585 4,376 677 (3,995) 7,505 Salaries and employee benefits 15,700 4,117 4,377 977 — 25,171 Depreciation and amortization 1,635 145 91 86 — 1,957 Other noninterest expenses 10,020 3,817 2,398 514 — 16,749 Total operating expenses 35,617 8,664 15,092 2,254 (3,995) 57,632 Income (loss) before income taxes 45 5,373 4,895 (1,007) — 9,306 Income tax expense (benefit) (593) 1,509 1,327 (319) — 1,924 Net income (loss) $ 638 $ 3,864 $ 3,568 $ (688) $ — $ 7,382 Total assets $ 1,860,367 $ 192,987 $ 301,372 $ 21,834 $ (393,356) $ 1,983,204 Capital expenditures $ 2,320 $ 326 $ 807 $ — $ — $ 3,453 Six Months Ended June 30, 2019 Community Mortgage Consumer (Dollars in thousands) Banking Banking Finance Other Eliminations Consolidated Revenues: Interest income $ 29,743 $ 1,019 $ 20,510 $ 4 $ (4,049) $ 47,227 Gains on sales of loans — 5,091 — — — 5,091 Other noninterest income 5,331 2,173 239 2,471 — 10,214 Total operating income 35,074 8,283 20,749 2,475 (4,049) 62,532 Expenses: Provision for loan losses 110 — 4,095 — — 4,205 Interest expense 4,668 572 5,169 595 (4,049) 6,955 Salaries and employee benefits 13,851 2,758 4,254 2,539 — 23,402 Depreciation and amortization 1,593 121 102 10 — 1,826 Other noninterest expenses 8,450 2,458 2,684 406 — 13,998 Total operating expenses 28,672 5,909 16,304 3,550 (4,049) 50,386 Income (loss) before income taxes 6,402 2,374 4,445 (1,075) — 12,146 Income tax expense (benefit) 1,041 625 1,211 (344) — 2,533 Net income (loss) $ 5,361 $ 1,749 $ 3,234 $ (731) $ — $ 9,613 Total assets $ 1,386,332 $ 101,554 $ 309,705 $ 19,696 $ (249,291) $ 1,567,996 Capital expenditures $ 1,288 $ 76 $ 40 $ 67 $ — $ 1,471 During the three months ended June 30, 2020, the Corporation recorded merger related expenses of $439,000 ($347,000 after income taxes), in connection with its acquisition of Peoples, all of which was allocated to the community banking segment and recorded as $50,000 of salaries and benefits expense and $389,000 of other noninterest expense. During the six months ended June 30, 2020, the Corporation recorded merger related expenses of $1.40 million ($1.13 million after income taxes), in connection with its acquisition of Peoples, of which $1.30 million ($1.03 million after income taxes) was allocated to the community banking segment and recorded as $119,000 of salaries and benefits expense, $879,000 of other noninterest expense and a loss on disposal of equipment of $298,000 included in other noninterest income. The remainder was recorded as other noninterest expense at the holding company. The community banking segment extends two warehouse lines of credit to the mortgage banking segment, providing a portion of the funds needed to originate mortgage loans. The community banking segment charges the mortgage banking segment interest at the daily FHLB advance rate plus a spread ranging from 50 basis points to 175 basis points. The community banking segment also provides the consumer finance segment with a portion of the funds needed to purchase loan contracts by means of variable rate notes that carry interest at one-month LIBOR plus 200 basis points, with a floor of 3.5 percent and fixed rate notes that carry interest at rates ranging from 2.0 percent to 8.0 percent. The community banking segment acquires certain residential real estate loans from the mortgage banking segment at prices similar to those paid by third-party investors. These transactions are eliminated to reach consolidated totals. Certain corporate overhead costs incurred by the community banking segment are not allocated to the mortgage banking, consumer finance and other segments.

Commitments and Contingent Liab

Commitments and Contingent Liabilities	6 Months Ended
Commitments and Contingent Liabilities	Jun. 30, 2020
Commitments and Contingent Liabilities
Commitments and Contingent Liabilities	NOTE 11: Commitments and Contingent Liabilities The Corporation enters into commitments to extend credit in the normal course of business to meet the financing needs of its customers, including loan commitments and standby letters of credit. These instruments involve elements of credit and interest rate risk in excess of the amounts recorded on the Consolidated Balance Sheets. The Corporation’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit written is represented by the contractual amount of these instruments. The Corporation uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments. Collateral is obtained based on management’s credit assessment of the customer. Loan commitments are agreements to extend credit to a customer provided that there are no violations of the terms of the contract prior to funding. Commitments have fixed expiration dates or other termination clauses and may require payment of a fee by the customer. Because many of the commitments may expire without being completely drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Bank evaluates each customer’s creditworthiness on a case-by-case basis. The amount of loan commitments at the Bank was $303.92 million at June 30, 2020 and $256.15 million at December 31, 2019, which does not include IRLCs at the mortgage banking segment, which are discussed in Note 12. Standby letters of credit are written conditional commitments issued by the Bank to guarantee the performance of a customer to a third party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to customers. The total contract amount of standby letters of credit, whose contract amounts represent credit risk, was $17.18 million at June 30, 2020 and $16.60 million at December 31, 2019. The mortgage banking segment sells substantially all of the residential mortgage loans it originates to third-party investors. As is customary in the industry, the agreements with these investors require the mortgage banking segment to extend representations and warranties with respect to program compliance, borrower misrepresentation, fraud, and early payment performance. Under the agreements, the investors are entitled to make loss claims and repurchase requests of the mortgage banking segment for loans that contain covered deficiencies. The mortgage banking segment has obtained early payment default recourse waivers for a significant portion of its business. Recourse periods for early payment default for the remaining investors vary from 90 days up to one year. Recourse periods for borrower misrepresentation or fraud, or underwriting error do not have a stated time limit. The mortgage banking segment maintains an allowance for indemnifications that represents management’s estimate of losses that are probable of arising under these recourse provisions. As performance data for loans that have been sold is not made available to the mortgage banking segment by the investors, the evaluation of potential losses is inherently subjective. A schedule of expected losses on loans with claims or indemnifications is maintained to ensure the reserve is adequate to cover estimated losses. For the three and six months ended June 30, 2020, the Corporation recorded $156,000 and $163,000 of provision for indemnifications, compared to no provision for indemnifications for the three and six months ended June 30, 2019, respectively. The allowance for indemnifications was $2.64 million at June 30, 2020 and $2.48 million at December 31, 2019.

Derivative Financial Instrument

Derivative Financial Instruments	6 Months Ended
Derivative Financial Instruments	Jun. 30, 2020
Derivative Financial Instruments
Derivative Financial Instruments	NOTE 12: Derivative Financial Instruments The Corporation uses derivative financial instruments primarily to manage risks to the Corporation associated with changing interest rates, and to assist customers with their risk management objectives. The Corporation designates certain interest rate swaps as hedging instruments in qualifying cash flow hedges. The changes in fair value of these designated hedging instruments is reported as a component of other comprehensive income. Derivative contracts that are not designated in a qualifying hedging relationship include customer accommodation loan swaps and contracts related to mortgage banking activities. Cash flow hedges All interest rate swaps were entered into with counterparties that met the Corporation’s credit standards and the agreements contain collateral provisions protecting the at-risk party. The Corporation believes that the credit risk inherent in these derivative contracts is not significant. Unrealized gains or losses recorded in other comprehensive income related to cash flow hedges are reclassified into earnings in the same period(s) during which the hedged interest payments affect earnings. When a designated hedging instrument is terminated and the hedged interest payments remain probable of occurring, any remaining unrecognized gain or loss in other comprehensive income is reclassified into earnings in the period(s) during which the forecasted interest payments affect earnings. Amounts reclassified into earnings and interest receivable or payable under designated interest rate swaps are reported in interest expense. The Corporation does not expect any unrealized losses related to cash flow hedges to be reclassified into earnings in the next twelve months. Loan swaps Mortgage banking At June 30, 2020, the mortgage banking segment had $232.97 million of IRLCs and $166.01 million of unpaid principal on mortgage loans held for sale for which it managed interest rate risk using best-efforts forward sales contracts for $398.98 million in mortgage loans. Also at June 30, 2020, the mortgage banking segment had $14.90 million of IRLCs and $8.84 million of unpaid principal on mortgage loans held for sale for which it managed interest rate risk using forward sales of $20.75 million of TBA securities and mandatory-delivery forward sales contracts for $1.60 million in mortgage loans. At December 31, 2019, the mortgage banking segment had $63.35 million of IRLCs and $65.77 million of unpaid principal on mortgage loans held for sale for which it managed interest rate risk using best-efforts forward sales contracts for $129.12 million in mortgage loans. Also at December 31, 2019, the mortgage banking segment had $11.72 million of IRLCs and $21.98 million of unpaid principal on mortgage loans held for sale for which it managed interest rate risk using forward sales of $24.0 million of TBA securities and mandatory-delivery forward sales contracts for $6.73 million in mortgage loans. The following tables summarize key elements of the Corporation’s derivative instruments other than forward sales of mortgage loans. The fair values of forward sales of mortgage loans were not material to the consolidated financial statements of the Corporation at June 30, 2020 or December 31, 2019. June 30, 2020 Notional (Dollars in thousands) Amount Assets Liabilities Cash flow hedges: Interest rate swap contracts $ 25,000 $ — $ 2,273 Not designated as hedges: Customer-related interest rate swap contracts: Matched interest rate swaps with borrower 85,282 9,743 — Matched interest rate swaps with counterparty 85,282 — 9,743 Mortgage banking contracts: IRLCs 247,871 3,701 — Forward sales of TBA securities 20,750 — 93 December 31, 2019 Notional (Dollars in thousands) Amount Assets Liabilities Cash flow hedges: Interest rate swap contracts $ 25,000 $ — $ 145 Not designated as hedges: Customer-related interest rate swap contracts: Matched interest rate swaps with borrower 74,266 2,454 8 Matched interest rate swaps with counterparty 74,266 8 2,454 Mortgage banking contracts: IRLCs 75,073 1,083 — Forward sales of TBA securities 24,000 — 25 The Corporation is required to maintain cash collateral with dealer counterparties for derivative instruments in a loss position, subject to certain thresholds and offsets. At June 30, 2020 and at December 31, 2019, $11.79 million and $2.52 million, respectively, of cash collateral was maintained with dealer counterparties and was included in “Other assets” in the Consolidated Balance Sheets.

Other Noninterest Expenses

Other Noninterest Expenses	6 Months Ended
Other Noninterest Expenses	Jun. 30, 2020
Other Noninterest Expenses
Other Noninterest Expenses	NOTE 13: Other Noninterest Expenses The following table presents the significant components in the Consolidated Statements of Income line “Noninterest Expenses-Other.” Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2020 2019 2020 2019 Data processing fees $ 2,448 $ 1,974 $ 4,842 $ 3,896 Professional fees 738 789 1,718 1,353 Mortgage banking loan processing expenses 780 388 1,264 683 Telecommunication expenses 409 330 781 648 Marketing and advertising expenses 348 435 838 808 Travel and educational expenses 100 304 544 706 All other noninterest expenses 2,048 1,686 3,825 3,392 Total other noninterest expenses $ 6,871 $ 5,906 $ 13,812 $ 11,486 The table above includes merger related expenses for the three months ended June 30, 2020 of $308,000, of which $263,000 was included in data processing fees, $22,000 was included in professional fees, and $23,000 was included in all other noninterest expenses and includes merger related expenses for the six months ended June 30, 2020 of $898,000, of which $501,000 was included in data processing fees, $336,000 was included in professional fees, and $61,000 was included in all other noninterest expenses. There were no merger related expenses during the three and six months ended June 30, 2019.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	6 Months Ended
Summary of Significant Accounting Policies (Policies)	Jun. 30, 2020
Summary of Significant Accounting Policies
Principles of Consolidation	Principles of Consolidation: The unaudited consolidated financial statements include the accounts of C&F Financial Corporation (the Corporation) and its direct wholly-owned subsidiary, Citizens and Farmers Bank (the Bank or C&F Bank) and indirect subsidiaries that are wholly-owned or controlled. Subsidiaries that are less than wholly owned are fully consolidated if they are controlled by the Corporation or one of its subsidiaries, and the portion of any subsidiary not owned by the Corporation is reported as noncontrolling interest. All significant intercompany accounts and transactions have been eliminated in consolidation. In addition, the Corporation owns all of the common stock of C&F Financial Statutory Trust I, C&F Financial Statutory Trust II and Central Virginia Bankshares Statutory Trust I, all of which are unconsolidated subsidiaries. The subordinated debt owed to these trusts is reported as liabilities of the Corporation. The accounting and reporting policies of the Corporation conform to U.S. GAAP and to predominant practices within the banking industry.
Nature of Operations	Nature of Operations: C&F Bank has five wholly-owned subsidiaries: C&F Mortgage Corporation (C&F Mortgage), C&F Finance Company (C&F Finance), C&F Wealth Management Corporation (C&F Wealth Management), C&F Insurance Services, Inc. and CVB Title Services, Inc., all incorporated under the laws of the Commonwealth of Virginia. C&F Mortgage, organized in September 1995, 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 Mortgage owns a 51 percent interest in C&F Select LLC, which was organized in January 2019 and is also engaged in the business of originating and selling residential mortgages. C&F Finance, acquired in September 2002, is a finance company purchasing automobile, marine and recreational vehicle (RV) loans through indirect lending programs. C&F Wealth Management, organized in April 1995, is a full-service brokerage firm offering a comprehensive range of wealth management services and insurance products through third-party service providers. C&F Insurance Services, Inc., was organized in July 1999, for the primary purpose of owning an equity interest in an independent insurance agency that operates in Virginia and North Carolina. CVB Title Services, Inc. was organized for the primary purpose of owning an equity interest in a full service title and settlement agency. Business segment data is presented in Note 10.
Basis of Presentation	Basis of Presentation: The outbreak of the novel coronavirus and the resulting COVID-19 pandemic has caused a significant disruption in economic activity worldwide, including in market areas served by the Corporation. Estimates for the allowance for loan losses at June 30, 2020 include losses related to the pandemic. The Corporation expects that the pandemic will continue to have an effect on its results of operations, including resulting in additional provision for loan losses in future periods. It is unknown how long these conditions will last and what the ultimate financial impact will be to the Corporation. Depending on the severity of the economic consequences of the pandemic, the Corporation’s goodwill may become impaired.
Reclassification	Reclassification:
Business Combination	Business Combination:
Derivative Financial Instruments	Derivative Financial Instruments:
Leases	Leases: The Corporation’s leases comprise primarily operating leases of real estate and office equipment in which the Corporation or one of its subsidiaries is the lessee. In the second quarter of 2020, the Corporation entered into a new lease of real estate which is classified as a finance lease. The right of use asset and lease liability were measured at June 30, December 31, (Dollars in thousands) 2020 2019 Operating leases: Right of use assets $ 2,491 $ 2,785 Lease liabilities 2,597 2,813 Finance leases: Right of use assets $ 2,172 $ — Lease liabilities 2,185 —
Income Taxes	Income Taxes:
Share-Based Compensation	Share-Based Compensation: A summary of activity for restricted stock awards during the first six months of 2020 and 2019 is presented below: 2020 Weighted- Average Grant Date Shares Fair Value Unvested, December 31, 2019 142,020 $ 48.88 Granted 14,650 53.22 Vested (16,230) 39.97 Forfeited (2,735) 5.89 Unvested, June 30, 2020 137,705 50.33 2019 Weighted- Average Grant Date Shares Fair Value Unvested, December 31, 2018 139,455 $ 45.75 Granted 16,100 51.73 Vested (16,290) 41.08 Forfeited (410) 53.28 Unvested, June 30, 2019 138,855 46.97
Paycheck Protection Program	Paycheck Protection Program:
Recently Adopted Accounting Pronouncements	Recently Adopted Accounting Pronouncements: On January 1, 2020, the Corporation adopted Accounting Standards Update (ASU) 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement.”
Recent Significant Accounting Pronouncements	Recent Significant Accounting Pronouncements: In June 2016, the Financial Accounting Standards Board (FASB) issued ASU 2016-13, “ Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments Financial Instruments – Credit Losses (Topic 326): Targeted Transition Relief Financial Instruments—Credit losses (Topic 326), Derivatives and hedging (Topic 815), and Leases (Topic 842)—Effective dates, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Financial Instruments-Credit Losses (Topic 326) and Leases (Topic 842) Codification Improvements to Financial Instruments The new standard will be effective for the Corporation beginning on January 1, 2023. Early adoption of the new standard is permitted. The amendments of ASC 326, upon adoption, will be applied on a modified retrospective basis, with the cumulative effect of adopting the new standard being recorded as an adjustment to opening retained earnings in the period of adoption. The Corporation has established a working group to prepare for and implement changes related to ASC 326 and has gathered historical loan loss data for purposes of evaluating appropriate portfolio segmentation and modeling methods under the standard. The Corporation has performed procedures to validate the historical loan loss data to ensure its suitability and reliability for purposes of developing an estimate of expected credit losses under ASC 326. The Corporation has engaged a vendor to assist in modeling expected lifetime losses under ASC 326, and is continuing to develop and refine an approach to estimating the allowance for credit losses. The adoption of ASC 326 will result in significant changes to the Corporation’s consolidated financial statements, which may include changes in the level of the allowance for credit losses that will be considered adequate, a reduction in total equity and regulatory capital of C&F Bank, differences in the timing of recognizing changes to the allowance for credit losses and expanded disclosures about the allowance for credit losses. The Corporation has not yet determined an estimate of the effect of these changes. The adoption of the standard will also result in significant changes in the Corporation’s internal control over financial reporting related to the allowance for credit losses. In August 2018, the FASB issued ASU 2018-14, “Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans.” Other accounting standards that have been issued by the FASB or other standards-setting bodies are not currently expected to have a material effect on the Corporation’s financial position, results of operations or cash flows.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	6 Months Ended
Summary of Significant Accounting Policies (Tables)	Jun. 30, 2020
Summary of Significant Accounting Policies
Summary of operating and finance lease	June 30, December 31, (Dollars in thousands) 2020 2019 Operating leases: Right of use assets $ 2,491 $ 2,785 Lease liabilities 2,597 2,813 Finance leases: Right of use assets $ 2,172 $ — Lease liabilities 2,185 —
Summary of activity for restricted stock awards	2020 Weighted- Average Grant Date Shares Fair Value Unvested, December 31, 2019 142,020 $ 48.88 Granted 14,650 53.22 Vested (16,230) 39.97 Forfeited (2,735) 5.89 Unvested, June 30, 2020 137,705 50.33 2019 Weighted- Average Grant Date Shares Fair Value Unvested, December 31, 2018 139,455 $ 45.75 Granted 16,100 51.73 Vested (16,290) 41.08 Forfeited (410) 53.28 Unvested, June 30, 2019 138,855 46.97

Business Combination (Tables)

Business Combination (Tables)	6 Months Ended
Business Combination (Tables)	Jun. 30, 2020
Schedule of acquired loans	June 30, 2020 December 31, 2019 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 $ 18,591 $ 116,971 $ 135,562 $ 6,262 $ 27,839 $ 34,101 Carrying amount Real estate – residential mortgage $ 1,814 $ 22,448 $ 24,262 $ 107 $ 7,035 $ 7,142 Real estate – construction — 3,762 3,762 — — — Commercial, financial and agricultural 1 5,452 74,254 79,706 563 11,338 11,901 Equity lines 77 11,767 11,844 35 8,046 8,081 Consumer 488 2,317 2,805 — 3 3 Total acquired loans $ 7,831 $ 114,548 $ 122,379 $ 705 $ 26,422 $ 27,127 1 Includes acquired loans classified by the Corporation as commercial real estate lending and commercial business lending.
Peoples Bankshares, Incorporated (Peoples)
Schedule of total consideration paid, the fair values of assets acquired and liabilities assumed, and the resulting goodwill	Amounts Recognized as of (Dollars in thousands) January 1, 2020 Purchase price: Cash paid $ 10,579 Common stock issued 11,612 Total purchase price $ 22,191 Identifiable assets acquired: Cash and cash equivalents $ 29,680 Securities available for sale 17,169 Loans 124,195 Accrued interest receivable 430 Corporate premises and equipment 3,105 Other real estate owned 281 Core deposit intangible asset 1,711 Bank-owned life insurance 3,591 Investment in small business investment company 1,493 Other receivables 5,234 Other assets 3,658 Total identifiable assets acquired 190,547 Identifiable liabilities assumed: Demand and savings deposits 94,798 Time deposits 77,018 Borrowings 4,245 Accrued interest payable 260 Salaries, benefits and deferred compensation 2,054 Other liabilities 747 Total identifiable liabilities assumed 179,122 Net identifiable assets assumed $ 11,425 Goodwill resulting from acquisition $ 10,766
Schedule of acquired loans	(Dollars in thousands) January 1, 2020 Contractual principal and interest due $ 20,310 Nonaccretable difference (7,679) Expected cash flows 12,631 Accretable yield (3,372) Purchase credit impaired loans - estimated fair value $ 9,259
Schedule of unaudited pro forma amounts	Unaudited Pro Forma Unaudited Pro Forma Three Months Ended Six Months Ended (Dollars in thousands, except per share amounts) June 30, 2019 June 30, 2019 Total revenues (net interest income plus nonintererest income) $ 30,808 $ 59,463 Net income $ 5,969 $ 10,258 Net income per share, basic and diluted $ 1.63 $ 2.78

Securities (Tables)

Securities (Tables)	6 Months Ended
Securities (Tables)	Jun. 30, 2020
Securities
Summary of available for sale debt securities	June 30, 2020 Gross Gross Amortized Unrealized Unrealized (Dollars in thousands) Cost Gains Losses Fair Value U.S. government agencies and corporations $ 37,068 $ 153 $ (16) $ 37,205 Mortgage-backed securities 102,749 3,500 — 106,249 Obligations of states and political subdivisions 101,361 2,321 (3) 103,679 $ 241,178 $ 5,974 $ (19) $ 247,133 December 31, 2019 Gross Gross Amortized Unrealized Unrealized (Dollars in thousands) Cost Gains Losses Fair Value U.S. government agencies and corporations $ 21,454 $ 3 $ (17) $ 21,440 Mortgage-backed securities 85,649 979 (43) 86,585 Obligations of states and political subdivisions 80,656 1,111 (59) 81,708 $ 187,759 $ 2,093 $ (119) $ 189,733
Schedule of amortized cost and estimated fair value of securities, by the earlier of contractual maturity or expected maturity	June 30, 2020 Amortized (Dollars in thousands) Cost Fair Value Due in one year or less $ 63,267 $ 63,568 Due after one year through five years 139,191 143,546 Due after five years through ten years 36,488 37,698 Due after ten years 2,232 2,321 $ 241,178 $ 247,133
Schedule of gross realized gains and losses and the proceeds	Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2020 2019 2020 2019 Realized gains from sales, maturities and calls of securities: Gross realized gains $ 3 $ 1 $ 7 $ 5 Gross realized losses — — — — Net realized gains $ 3 $ 1 $ 7 $ 5 Proceeds from sales, maturities, calls and paydowns of securities $ 31,717 $ 17,982 $ 70,780 $ 33,639
Schedule of securities in an unrealized loss position	Securities in an unrealized loss position at June 30, 2020, by duration of the period of the unrealized loss, are shown below. Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Loss Value Loss Value Loss U.S. government agencies and corporations $ 14,320 $ 16 $ — $ — $ 14,320 $ 16 Mortgage-backed securities — — — — — — Obligations of states and political subdivisions 1,412 3 — — 1,412 3 Total temporarily impaired securities $ 15,732 $ 19 $ — $ — $ 15,732 $ 19 Securities in an unrealized loss position at December 31, 2019, 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 $ 6,256 $ 11 $ 4,094 $ 6 $ 10,350 $ 17 Mortgage-backed securities 4,099 7 10,166 36 14,265 43 Obligations of states and political subdivisions 9,187 53 1,368 6 10,555 59 Total temporarily impaired securities $ 19,542 $ 71 $ 15,628 $ 48 $ 35,170 $ 119

Loans (Tables)

Loans (Tables)	6 Months Ended
Loans (Tables)	Jun. 30, 2020
Loans
Summary of major classifications of loans	June 30, December 31, (Dollars in thousands) 2020 2019 Real estate – residential mortgage $ 205,011 $ 181,295 Real estate – construction 1 72,094 54,246 Commercial, financial and agricultural 2 682,817 500,812 Equity lines 52,697 52,083 Consumer 15,722 13,756 Consumer finance 300,649 312,999 1,328,990 1,115,191 Less allowance for loan losses (36,094) (32,873) Loans, net $ 1,292,896 $ 1,082,318 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	June 30, 2020 December 31, 2019 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 $ 18,591 $ 116,971 $ 135,562 $ 6,262 $ 27,839 $ 34,101 Carrying amount Real estate – residential mortgage $ 1,814 $ 22,448 $ 24,262 $ 107 $ 7,035 $ 7,142 Real estate – construction — 3,762 3,762 — — — Commercial, financial and agricultural 1 5,452 74,254 79,706 563 11,338 11,901 Equity lines 77 11,767 11,844 35 8,046 8,081 Consumer 488 2,317 2,805 — 3 3 Total acquired loans $ 7,831 $ 114,548 $ 122,379 $ 705 $ 26,422 $ 27,127 1 Includes acquired loans classified by the Corporation as commercial real estate lending and commercial business lending.
Summary of change in the accretable yield of loans classified as purchased credit impaired (PCI)	Six Months Ended June 30, (Dollars in thousands) 2020 2019 Accretable yield, balance at beginning of period $ 4,721 $ 5,987 Additions 3,372 — Accretion (1,687) (1,760) Reclassification of nonaccretable difference due to improvement in expected cash flows 923 727 Other changes, net 115 349 Accretable yield, balance at end of period $ 7,444 $ 5,303
Schedule of loans on nonaccrual status	June 30, December 31, (Dollars in thousands) 2020 2019 Real estate – residential mortgage $ 980 $ 1,526 Commercial, financial and agricultural: Commercial business lending — 11 Equity lines 244 229 Consumer 542 118 Consumer finance 369 611 Total loans on nonaccrual status $ 2,135 $ 2,495
Schedule of past due status of loans	The past due status of loans as of June 30, 2020 was as follows: 90+ Days 30 - 59 Days 60 - 89 Days 90+ Days Total Past Due and (Dollars in thousands) Past Due Past Due Past Due Past Due PCI Current 1 Total Loans Accruing Real estate – residential mortgage $ 537 $ 285 $ 880 $ 1,702 $ 1,814 $ 201,495 $ 205,011 $ 291 Real estate – construction: Construction lending — — — — — 56,382 56,382 — Consumer lot lending — — — — — 15,712 15,712 — Commercial, financial and agricultural: Commercial real estate lending 232 — — 232 5,452 415,999 421,683 — Land acquisition and development lending — — — — — 38,121 38,121 — Builder line lending — — — — — 22,172 22,172 — Commercial business lending — — — — — 200,841 200,841 — Equity lines 47 — 50 97 76 52,524 52,697 — Consumer — 57 — 57 489 15,176 15,722 — Consumer finance 5,096 705 369 6,170 — 294,479 300,649 — Total $ 5,912 $ 1,047 $ 1,299 $ 8,258 $ 7,831 $ 1,312,901 $ 1,328,990 $ 291 1 For the purposes of the table above, “Current” includes loans that are 1-29 days past due. The table above includes nonaccrual loans that are current of $649,000, 60-89 days past due of $19,000 and 90+ days past due of $1.04 million, as well as nonaccrual loans that are PCI of $427,000. The past due status of loans as of December 31, 2019 was as follows: 90+ Days 30 - 59 Days 60 - 89 Days 90+ Days Total Past Due and (Dollars in thousands) Past Due Past Due Past Due Past Due PCI Current 1 Total Loans Accruing Real estate – residential mortgage $ 1,428 $ 161 $ 1,016 $ 2,605 $ 107 $ 178,583 $ 181,295 $ — Real estate – construction: Construction lending — — — — — 40,943 40,943 — Consumer lot lending — — — — — 13,303 13,303 — Commercial, financial and agricultural: Commercial real estate lending — — — — 563 325,991 326,554 — Land acquisition and development lending — — — — — 42,891 42,891 — Builder line lending — — — — — 26,373 26,373 — Commercial business lending 73 18 — 91 — 104,903 104,994 — Equity lines 229 56 223 508 35 51,540 52,083 109 Consumer 20 10 — 30 — 13,726 13,756 — Consumer finance 11,034 1,420 611 13,065 — 299,934 312,999 — Total $ 12,784 $ 1,665 $ 1,850 $ 16,299 $ 705 $ 1,098,187 $ 1,115,191 $ 109 1 For the purposes of the table above, “Current” includes loans that are 1-29 days past due. The table above includes nonaccrual loans that are current of $547,000, 30-59 days past due of $197,000, 60-89 days past due of $10,000 and 90+ days past due of $1.74 million.
Schedule of impaired loans	Impaired loans, which included TDRs of $3.79 million, and the related allowance at June 30, 2020 were as follows: Recorded Recorded Investment Investment Average Unpaid in Loans in Loans Balance- Interest Principal without with Related Impaired Income (Dollars in thousands) Balance Specific Reserve Specific Reserve Allowance Loans Recognized Real estate – residential mortgage $ 2,892 $ 1,072 $ 1,677 $ 69 $ 2,875 $ 44 Commercial, financial and agricultural: Commercial real estate lending 1,401 — 1,401 72 1,409 37 Equity lines 121 113 — — 120 1 Consumer 126 — 114 107 115 — Total $ 4,540 $ 1,185 $ 3,192 $ 248 $ 4,519 $ 82 Impaired loans, which included TDRs of $4.35 million, and the related allowance at December 31, 2019 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 $ 3,891 $ 2,192 $ 1,479 $ 72 $ 3,506 $ 155 Commercial, financial and agricultural: Commercial real estate lending 1,459 4 1,447 77 1,581 82 Equity lines 31 31 — — 32 2 Consumer 130 — 121 118 123 — Total $ 5,511 $ 2,227 $ 3,047 $ 267 $ 5,242 $ 239

Allowance for Loan Losses (Tabl

Allowance for Loan Losses (Tables)	6 Months Ended
Allowance for Loan Losses (Tables)	Jun. 30, 2020
Allowance for Loan Losses
Schedule of changes in the allowance for loan losses	The following table presents the changes in the allowance for loan losses by major classification during the six months ended June 30, 2020: Real Estate Commercial, Residential Real Estate Financial & Equity Consumer (Dollars in thousands) Mortgage Construction Agricultural Lines Consumer Finance Total Allowance for loan losses: Balance at December 31, 2019 $ 2,080 $ 681 $ 7,121 $ 733 $ 465 $ 21,793 $ 32,873 Provision charged to operations 285 302 1,724 56 33 3,850 6,250 Loans charged off (4) — (18) — (133) (5,422) (5,577) Recoveries of loans previously charged off 64 — 2 — 105 2,377 2,548 Balance at June 30, 2020 $ 2,425 $ 983 $ 8,829 $ 789 $ 470 $ 22,598 $ 36,094 The following table presents the changes in the allowance for loan losses by major classification during the six months ended June 30, 2019: 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, 2018 $ 2,246 $ 727 $ 6,688 $ 1,106 $ 257 $ 22,999 $ 34,023 Provision (credited) charged to operations (68) 23 218 (225) 162 4,095 4,205 Loans charged off (45) — (29) — (162) (6,966) (7,202) Recoveries of loans previously charged off 9 — 3 — 115 2,248 2,375 Balance at June 30, 2019 $ 2,142 $ 750 $ 6,880 $ 881 $ 372 $ 22,376 $ 33,401
Schedule of balance of the allowance for loan losses and the balance of loans by impairment methodology	The following table presents, as of June 30, 2020, the balance of the allowance for loan losses and the balance of loans by impairment methodology. Real Estate Commercial, Residential Real Estate Financial & Equity Consumer (Dollars in thousands) Mortgage Construction Agricultural Lines Consumer Finance Total Allowance balance attributable to loans: Individually evaluated for impairment $ 69 $ — $ 72 $ — $ 107 $ — $ 248 Collectively evaluated for impairment 2,356 983 8,757 789 363 22,598 35,846 Acquired loans - PCI — — — — — — — Total allowance $ 2,425 $ 983 $ 8,829 $ 789 $ 470 $ 22,598 $ 36,094 Loans: Individually evaluated for impairment $ 2,749 $ — $ 1,401 $ 113 $ 114 $ — $ 4,377 Collectively evaluated for impairment 200,448 72,094 675,964 52,508 15,119 300,649 1,316,782 Acquired loans - PCI 1,814 — 5,452 76 489 — 7,831 Total loans $ 205,011 $ 72,094 $ 682,817 $ 52,697 $ 15,722 $ 300,649 $ 1,328,990 The following table presents, as of December 31, 2019, the balance of the allowance for loan losses, the allowance by impairment methodology, total loans and loans by impairment methodology. Real Estate Commercial, Residential Real Estate Financial & Equity Consumer (Dollars in thousands) Mortgage Construction Agricultural Lines Consumer Finance Total Allowance balance attributable to loans: Individually evaluated for impairment $ 72 $ — $ 77 $ — $ 118 $ — $ 267 Collectively evaluated for impairment 2,008 681 7,044 733 347 21,793 32,606 Acquired loans - PCI — — — — — — — Total allowance $ 2,080 $ 681 $ 7,121 $ 733 $ 465 $ 21,793 $ 32,873 Loans: Individually evaluated for impairment $ 3,671 $ — $ 1,451 $ 31 $ 121 $ — $ 5,274 Collectively evaluated for impairment 177,517 54,246 498,798 52,017 13,635 312,999 1,109,212 Acquired loans - PCI 107 — 563 35 — — 705 Total loans $ 181,295 $ 54,246 $ 500,812 $ 52,083 $ 13,756 $ 312,999 $ 1,115,191
Schedule of loans by credit quality indicators	Loans by credit quality indicators as of June 30, 2020 were as follows: Special Substandard (Dollars in thousands) Pass Mention Substandard Nonaccrual Total 1 Real estate – residential mortgage $ 201,678 $ 1,511 $ 842 $ 980 $ 205,011 Real estate – construction: Construction lending 56,382 — — — 56,382 Consumer lot lending 15,712 — — — 15,712 Commercial, financial and agricultural: Commercial real estate lending 393,105 26,125 2,453 — 421,683 Land acquisition and development lending 30,575 7,546 — — 38,121 Builder line lending 22,172 — — — 22,172 Commercial business lending 196,755 4,086 — — 200,841 Equity lines 52,340 105 8 244 52,697 Consumer 15,119 61 — 542 15,722 $ 983,838 $ 39,434 $ 3,303 $ 1,766 $ 1,028,341 1 At June 30, 2020, 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 Peoples of $93.84 million pass rated, $1.77 million special mention, $2.91 million substandard and $427,000 substandard nonaccrual. Non- (Dollars in thousands) Performing Performing Total Consumer finance $ 300,280 $ 369 $ 300,649 Loans by credit quality indicators as of December 31, 2019 were as follows: Special Substandard (Dollars in thousands) Pass Mention Substandard Nonaccrual Total 1 Real estate – residential mortgage $ 177,049 $ 1,839 $ 881 $ 1,526 $ 181,295 Real estate – construction: Construction lending 40,943 — — — 40,943 Consumer lot lending 13,303 — — — 13,303 Commercial, financial and agricultural: Commercial real estate lending 323,218 3,266 70 — 326,554 Land acquisition and development lending 33,870 9,021 — — 42,891 Builder line lending 25,995 378 — — 26,373 Commercial business lending 104,291 692 — 11 104,994 Equity lines 51,662 181 11 229 52,083 Consumer 13,632 6 — 118 13,756 $ 783,963 $ 15,383 $ 962 $ 1,884 $ 802,192 1 At December 31, 2019, the Corporation did not have any loans classified as Doubtful or Loss. Non- (Dollars in thousands) Performing Performing Total Consumer finance $ 312,388 $ 611 $ 312,999

Goodwill and Other Intangible_2

Goodwill and Other Intangible Assets (Tables)	6 Months Ended
Goodwill and Other Intangible Assets (Tables)	Jun. 30, 2020
Goodwill and Other Intangible Assets
Schedule of changes in goodwill, by reporting unit	Community Consumer (Dollars in thousands) Banking Finance Total Balance as of January 1, 2020 $ 3,702 $ 10,723 $ 14,425 Acquisition of Peoples Bankshares, Incorporated 10,766 — 10,766 Balance at June 30, 2020 $ 14,468 $ 10,723 $ 25,191
Schedule of gross carrying amounts and accumulated amortization of other intangible assets	June 30, December 31, 2020 2019 Gross Gross Carrying Accumulated Carrying Accumulated (Dollars in thousands) Amount Amortization Amount Amortization Amortized intangible assets: Core deposit intangibles $ 1,711 $ (86) $ — $ — Other intangibles 1,405 (573) 1,405 (493) Total $ 3,116 $ (659) $ 1,405 $ (493)

Equity, Other Comprehensive I_2

Equity, Other Comprehensive Income and Earnings Per Share (Tables)	6 Months Ended
	Jun. 30, 2020
Equity, Other Comprehensive Income and Earnings Per Share
Schedule of the components of accumulated other comprehensive loss, net of deferred taxes	June 30, December 31, (Dollars in thousands) 2020 2019 Net unrealized gains on securities $ 4,705 $ 1,560 Net unrecognized losses on cash flow hedges (1,654) (69) Net unrecognized losses on defined benefit plan (3,689) (3,740) Total accumulated other comprehensive loss, net $ (638) $ (2,249)
Schedule of components earnings per share calculations	Three Months Ended June 30, (Dollars in thousands) 2020 2019 Net income attributable to C&F Financial Corporation $ 3,746 $ 5,843 Weighted average shares outstanding — 3,647,707 3,463,277 Six Months Ended June 30, (Dollars in thousands) 2020 2019 Net income attributable to C&F Financial Corporation $ 7,324 $ 9,614 Weighted average shares outstanding — 3,646,161 3,473,875

Employee Benefit Plans (Tables)

Employee Benefit Plans (Tables)	6 Months Ended
Employee Benefit Plans (Tables)	Jun. 30, 2020
Employee Benefit Plans
Schedule of net periodic benefit costs	Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2020 2019 2020 2019 Components of net periodic benefit cost: Service cost, included in salaries and employee benefits $ 415 $ 316 $ 801 $ 609 Other components of net periodic benefit cost: Interest cost 140 151 275 304 Expected return on plan assets (371) (319) (745) (649) Amortization of prior service credit (17) (17) (34) (34) Amortization of net obligation at transition — — — — Recognized net actuarial losses 57 52 99 94 Other components of net periodic benefit cost, included in other noninterest income (191) (133) (405) (285) Net periodic benefit cost $ 224 $ 183 $ 396 $ 324

Fair Value of Assets and Liab_2

Fair Value of Assets and Liabilities (Tables)	6 Months Ended
Fair Value of Assets and Liabilities (Tables)	Jun. 30, 2020
Fair Value of Assets and Liabilities
Schedule of balances of financial assets and liabilities measured at fair value on a recurring basis	June 30, 2020 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 $ — $ 37,205 $ — $ 37,205 Mortgage-backed securities — 106,249 — 106,249 Obligations of states and political subdivisions — 103,679 — 103,679 Total securities available for sale — 247,133 — 247,133 Loans held for sale — 180,137 — 180,137 Derivatives IRLC — 3,701 — 3,701 Interest rate swaps on loans — 9,743 — 9,743 Total assets $ — $ 440,714 $ — $ 440,714 Liabilities: Derivatives Interest rate swaps on loans $ — $ 9,743 $ — $ 9,743 Cash flow hedges — 2,273 — 2,273 Forward sales of TBA securities — 93 — 93 Total liabilities $ — $ 12,109 $ — $ 12,109 December 31, 2019 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 $ — $ 21,440 $ — $ 21,440 Mortgage-backed securities — 86,585 — 86,585 Obligations of states and political subdivisions — 81,708 — 81,708 Total securities available for sale — 189,733 — 189,733 Loans held for sale — 90,500 — 90,500 Derivatives IRLC — 1,083 — 1,083 Interest rate swaps on loans — 2,462 — 2,462 Total assets $ — $ 283,778 $ — $ 283,778 Liabilities: Derivatives Interest rate swaps on loans $ — $ 2,462 $ — $ 2,462 Cash flow hedges — 145 — 145 Forward sales of TBA securities — 25 — 25 Total liabilities $ — $ 2,632 $ — $ 2,632
Schedule of balances of assets measured at fair value on a nonrecurring basis	June 30, 2020 Fair Value Measurements Using Assets at Fair (Dollars in thousands) Level 1 Level 2 Level 3 Value Other real estate owned, net $ — $ — $ 268 $ 268 Total $ — $ — $ 268 $ 268 December 31, 2019 Fair Value Measurements Using Assets at Fair (Dollars in thousands) Level 1 Level 2 Level 3 Value Impaired loans, net $ — $ — $ 102 $ 102 Other real estate owned, net — — 268 268 Total $ — $ — $ 370 $ 370
Schedule of quantitative information about Level 3 fair value measurements for financial assets measured at fair value on a nonrecurring basis	Fair Value Measurements at June 30, 2020 (Dollars in thousands) Fair Value Valuation Technique(s) Unobservable Inputs Range (Weighted Average) 1 Other real estate owned, net $ 268 Appraisals Discount to reflect current market conditions and estimated selling costs 33% -75% (45%) Total $ 268 1 The weighted average of unobservable inputs is calculated based on the relative asset fair values.
Schedule of carrying amounts and estimated fair values of financial instruments	Carrying Fair Value Measurements at June 30, 2020 Using Total Fair (Dollars in thousands) Value Level 1 Level 2 Level 3 Value Financial assets: Cash and short-term investments $ 80,300 $ 80,300 $ — $ — $ 80,300 Securities available for sale 247,133 — 247,133 — 247,133 Loans, net 1,292,896 — — 1,299,598 1,299,598 Loans held for sale 180,137 — 180,137 — 180,137 Derivatives IRLC 3,701 — 3,701 — 3,701 Interest rate swaps on loans 9,743 — 9,743 — 9,743 Bank-owned life insurance 19,862 — 19,862 — 19,862 Accrued interest receivable 8,104 8,104 — — 8,104 Financial liabilities: Demand deposits 1,153,248 1,153,248 — — 1,153,248 Time deposits 492,541 — 501,932 — 501,932 Borrowings 91,336 — 92,667 — 92,667 Derivatives Cash flow hedges 2,273 — 2,273 — 2,273 Interest rate swaps on loans 9,743 — 9,743 — 9,743 Forward sales of TBA securities 93 — 93 — 93 Accrued interest payable 1,210 1,210 — — 1,210 Carrying Fair Value Measurements at December 31, 2019 Using Total Fair (Dollars in thousands) Value Level 1 Level 2 Level 3 Value Financial assets: Cash and short-term investments $ 165,433 $ 165,433 $ — $ — $ 165,433 Securities available for sale 189,733 — 189,733 — 189,733 Loans, net 1,082,318 — — 1,082,783 1,082,783 Loans held for sale 90,500 — 90,500 — 90,500 Derivatives IRLC 1,083 — 1,083 — 1,083 Interest rate swaps on loans 2,462 — 2,462 — 2,462 Bank-owned life insurance 16,044 — 16,044 — 16,044 Accrued interest receivable 6,776 6,776 — — 6,776 Financial liabilities: Demand deposits 869,194 869,194 — — 869,194 Time deposits 422,056 — 423,605 — 423,605 Borrowings 161,170 — 154,964 — 154,964 Derivatives Cash flow hedges 145 — 145 — 145 Interest rate swaps on loans 2,462 — 2,462 — 2,462 Forward sales of TBA securities 25 — 25 25 Accrued interest payable 1,291 1,291 — — 1,291

Business Segments (Tables)

Business Segments (Tables)	6 Months Ended
Business Segments (Tables)	Jun. 30, 2020
Business Segments
Schedule of segment reporting information, by segment	Three Months Ended June 30, 2020 Community Mortgage Consumer (Dollars in thousands) Banking Banking Finance Other Eliminations Consolidated Revenues: Interest income $ 14,894 $ 1,097 $ 9,689 $ — $ (2,096) $ 23,584 Gains on sales of loans — 4,605 — — — 4,605 Other noninterest income 2,221 2,387 80 2,535 — 7,223 Total operating income 17,115 8,089 9,769 2,535 (2,096) 35,412 Expenses: Provision for loan losses 1,400 — 2,200 — — 3,600 Interest expense 2,718 280 2,090 338 (2,096) 3,330 Salaries and employee benefits 7,640 2,272 2,134 2,308 — 14,354 Depreciation and amortization 829 73 45 43 — 990 Other noninterest expenses 5,020 2,166 1,057 205 — 8,448 Total operating expenses 17,607 4,791 7,526 2,894 (2,096) 30,722 Income (loss) before income taxes (492) 3,298 2,243 (359) — 4,690 Income tax expense (benefit) (560) 977 605 (75) — 947 Net income (loss) $ 68 $ 2,321 $ 1,638 $ (284) $ — $ 3,743 Total assets $ 1,860,367 $ 192,987 $ 301,372 $ 21,834 $ (393,356) $ 1,983,204 Capital expenditures $ 1,568 $ 32 $ 305 $ — $ — $ 1,905 Three Months Ended June 30, 2019 Community Mortgage Consumer (Dollars in thousands) Banking Banking Finance Other Eliminations Consolidated Revenues: Interest income $ 15,419 $ 669 $ 10,365 $ 2 $ (2,179) $ 24,276 Gains on sales of loans — 2,955 — — — 2,955 Other noninterest income 2,893 1,335 110 909 — 5,247 Total operating income 18,312 4,959 10,475 911 (2,179) 32,478 Expenses: Provision for loan losses 110 — 1,700 — — 1,810 Interest expense 2,493 409 2,618 310 (2,179) 3,651 Salaries and employee benefits 6,873 1,611 2,069 942 — 11,495 Depreciation and amortization 758 59 50 (35) — 832 Other noninterest expenses 4,382 1,276 1,361 203 — 7,222 Total operating expenses 14,616 3,355 7,798 1,420 (2,179) 25,010 Income (loss) before income taxes 3,696 1,604 2,677 (509) — 7,468 Income tax expense (benefit) 625 422 728 (149) — 1,626 Net income (loss) $ 3,071 $ 1,182 $ 1,949 $ (360) $ — $ 5,842 Total assets $ 1,386,332 $ 101,554 $ 309,705 $ 19,696 $ (249,291) $ 1,567,996 Capital expenditures $ 566 $ 52 $ 32 $ 67 $ — $ 717 Six Months Ended June 30, 2020 Community Mortgage Consumer (Dollars in thousands) Banking Banking Finance Other Eliminations Consolidated Revenues: Interest income $ 30,809 $ 1,758 $ 19,790 $ — $ (3,995) $ 48,362 Gains on sales of loans — 8,281 — — — 8,281 Other noninterest income 4,853 3,998 197 1,247 — 10,295 Total operating income 35,662 14,037 19,987 1,247 (3,995) 66,938 Expenses: Provision for loan losses 2,400 — 3,850 — — 6,250 Interest expense 5,862 585 4,376 677 (3,995) 7,505 Salaries and employee benefits 15,700 4,117 4,377 977 — 25,171 Depreciation and amortization 1,635 145 91 86 — 1,957 Other noninterest expenses 10,020 3,817 2,398 514 — 16,749 Total operating expenses 35,617 8,664 15,092 2,254 (3,995) 57,632 Income (loss) before income taxes 45 5,373 4,895 (1,007) — 9,306 Income tax expense (benefit) (593) 1,509 1,327 (319) — 1,924 Net income (loss) $ 638 $ 3,864 $ 3,568 $ (688) $ — $ 7,382 Total assets $ 1,860,367 $ 192,987 $ 301,372 $ 21,834 $ (393,356) $ 1,983,204 Capital expenditures $ 2,320 $ 326 $ 807 $ — $ — $ 3,453 Six Months Ended June 30, 2019 Community Mortgage Consumer (Dollars in thousands) Banking Banking Finance Other Eliminations Consolidated Revenues: Interest income $ 29,743 $ 1,019 $ 20,510 $ 4 $ (4,049) $ 47,227 Gains on sales of loans — 5,091 — — — 5,091 Other noninterest income 5,331 2,173 239 2,471 — 10,214 Total operating income 35,074 8,283 20,749 2,475 (4,049) 62,532 Expenses: Provision for loan losses 110 — 4,095 — — 4,205 Interest expense 4,668 572 5,169 595 (4,049) 6,955 Salaries and employee benefits 13,851 2,758 4,254 2,539 — 23,402 Depreciation and amortization 1,593 121 102 10 — 1,826 Other noninterest expenses 8,450 2,458 2,684 406 — 13,998 Total operating expenses 28,672 5,909 16,304 3,550 (4,049) 50,386 Income (loss) before income taxes 6,402 2,374 4,445 (1,075) — 12,146 Income tax expense (benefit) 1,041 625 1,211 (344) — 2,533 Net income (loss) $ 5,361 $ 1,749 $ 3,234 $ (731) $ — $ 9,613 Total assets $ 1,386,332 $ 101,554 $ 309,705 $ 19,696 $ (249,291) $ 1,567,996 Capital expenditures $ 1,288 $ 76 $ 40 $ 67 $ — $ 1,471

Derivative Financial Instrume_2

Derivative Financial Instruments (Tables)	6 Months Ended
Derivative Financial Instruments (Tables)	Jun. 30, 2020
Derivative Financial Instruments
Schedule of key elements of derivative instruments other than forward sales of mortgage loans	June 30, 2020 Notional (Dollars in thousands) Amount Assets Liabilities Cash flow hedges: Interest rate swap contracts $ 25,000 $ — $ 2,273 Not designated as hedges: Customer-related interest rate swap contracts: Matched interest rate swaps with borrower 85,282 9,743 — Matched interest rate swaps with counterparty 85,282 — 9,743 Mortgage banking contracts: IRLCs 247,871 3,701 — Forward sales of TBA securities 20,750 — 93 December 31, 2019 Notional (Dollars in thousands) Amount Assets Liabilities Cash flow hedges: Interest rate swap contracts $ 25,000 $ — $ 145 Not designated as hedges: Customer-related interest rate swap contracts: Matched interest rate swaps with borrower 74,266 2,454 8 Matched interest rate swaps with counterparty 74,266 8 2,454 Mortgage banking contracts: IRLCs 75,073 1,083 — Forward sales of TBA securities 24,000 — 25

Other Noninterest Expenses (Tab

Other Noninterest Expenses (Tables)	6 Months Ended
Other Noninterest Expenses (Tables)	Jun. 30, 2020
Other Noninterest Expenses
Schedule of other noninterest expense	Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2020 2019 2020 2019 Data processing fees $ 2,448 $ 1,974 $ 4,842 $ 3,896 Professional fees 738 789 1,718 1,353 Mortgage banking loan processing expenses 780 388 1,264 683 Telecommunication expenses 409 330 781 648 Marketing and advertising expenses 348 435 838 808 Travel and educational expenses 100 304 544 706 All other noninterest expenses 2,048 1,686 3,825 3,392 Total other noninterest expenses $ 6,871 $ 5,906 $ 13,812 $ 11,486

Summary of Significant Accoun_4

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

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Leases (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Summary of Significant Accounting Policies
Right of use asset and lease liability measured at commencement of the lease	$ 2,180	$ 2,778	$ 1,048
Operating leases, Right-of-use assets	$ 2,491	$ 2,491		$ 2,785
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Other assets	Other assets
Operating leases, Lease liabilities	$ 2,597	$ 2,597		$ 2,813
Operating Lease, Liability, Statement of Financial Position [Extensible List]	Other liabilities	Other liabilities
Finance leases, Right of use assets	$ 2,172	$ 2,172
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Other assets	Other assets
Finance Lease, Lease liabilities	$ 2,185	$ 2,185
Finance Lease, Liability, Statement of Financial Position [Extensible List]	Long-term Borrowings	Long-term Borrowings

Summary of Significant Accoun_6

Summary of Significant Accounting Policies - Income taxes (Details) - USD ($)	3 Months Ended	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2020	Jun. 30, 2019
Summary of Significant Accounting Policies
Effective income tax rate (as a percent)		20.70%	20.90%
Income tax benefits from a change in tax law	$ 303,000	$ 303,000

Summary of Significant Accoun_7

Summary of Significant Accounting Policies - Share-Based Compensation (Details) - Restricted Stock	3 Months Ended	6 Months Ended
	Jun. 30, 2020USD ($)	Jun. 30, 2020USD ($)
Share-based compensation
Compensation expense before tax	$ 312,000	$ 701,000
Compensation expense after tax	217,000	435,000
Unrecognized compensation expense	$ 3,300,000	$ 3,300,000

Summary of Significant Accoun_8

Summary of Significant Accounting Policies - Restricted Stock Activity (Details) - $ / shares	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Shares
Unvested, beginning of period (in shares)	142,020
Unvested, end of period (in shares)	137,705
Restricted Stock
Shares
Unvested, beginning of period (in shares)	142,020	139,455
Granted (in shares)	14,650	16,100
Vested (in shares)	(16,230)	(16,290)
Forfeited	(2,735)	(410)
Unvested, end of period (in shares)	137,705	138,855
Weighted-Average Grant Date Fair Value
Nonvested, beginning of period (in dollars per share)	$ 48.88	$ 45.75
Granted (in dollars per share)	53.22	51.73
Vested (in dollars per share)	39.97	41.08
Forfeited (in dollars per share)	5.89	53.28
Nonvested, end of period (in dollars per share)	$ 50.33	$ 46.97

Summary of Significant Accoun_9

Summary of Significant Accounting Policies - Paycheck Protection Program (Details)	6 Months Ended
	Jun. 30, 2020
Minimum
Fees as percentage of principal amount (as a percent)	1.00%
Maximum
Fees as percentage of principal amount (as a percent)	5.00%

Business Combination - Consider

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

Business Combination - Purchase

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

[1]	Derived from audited consolidated financial statements.

Business Combination - Loans, C

Business Combination - Loans, Core Deposit Intangible and Deposits (Details) - USD ($)	Jan. 01, 2020	Jun. 30, 2020	Dec. 31, 2019
Business Combination
Outstanding principal balance		$ 135,562,000	$ 34,101,000
Loans, allowance for loan losses		36,094,000	32,873,000
Information about PCI loans acquired
Contractual principal and interest due	$ 20,310,000
Nonaccretable difference	(7,679,000)
Expected cash flows	12,631,000
Accretable yield	(3,372,000)
Purchase credit impaired loans - estimated fair value	$ 9,259,000
Maximum
Information about PCI loans acquired
Maturity of deposits	5 years
PCI Loans
Business Combination
Outstanding principal balance		$ 18,591,000	$ 6,262,000
Peoples Bankshares, Incorporated (Peoples)
Business Combination
Outstanding principal balance	$ 131,920,000
Estimated fair value of loans acquired	124,195,000
Loans, allowance for loan losses	2,870,000
Information about PCI loans acquired
Core deposit intangible asset	$ 1,711,000
Percentage of CDI to non-maturity deposits	1.80%
Premium of deposits	$ 557,000
Amortization period	2 years
Peoples Bankshares, Incorporated (Peoples) \| Minimum
Information about PCI loans acquired
Maturity of deposits	3 months
Peoples Bankshares, Incorporated (Peoples) \| PCI Loans
Business Combination
Outstanding principal balance	$ 4,280,000
Estimated fair value of loans acquired	$ 635,000

Business Combination - Pro form

Business Combination - Pro forma (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2019
Unaudited pro forma information
After tax merger related expenses	$ 28	$ 28
After tax merger related expenses per share (in US$ per share)	$ (0.01)	$ (0.01)
Total revenues (net interest income plus nonintererest income)	$ 30,808	$ 59,463
Net income	$ 5,969	$ 10,258
Net income per share, basic and diluted	$ 1.63	$ 2.78

Business Combination - Merger r

Business Combination - Merger related costs (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Business Combination
Merger related costs	$ 308,000	$ 0	$ 898,000	$ 0
Peoples Bankshares, Incorporated (Peoples)
Business Combination
Aggregated merger related costs	2,100,000		2,100,000
Aggregated merger related costs, after Income Taxes	1,780,000		1,780,000
Merger related costs	439,000	$ 0	1,400,000	$ 0
Merger related costs, after income taxes	$ 347,000		$ 1,130,000

Securities - Available for sale

Securities - Available for sale Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 241,178	$ 187,759
Gross Unrealized Gains	5,974	2,093
Gross Unrealized Losses	(19)	(119)
Fair Value	247,133	189,733	[1]
U.S. government agencies and corporations
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	37,068	21,454
Gross Unrealized Gains	153	3
Gross Unrealized Losses	(16)	(17)
Fair Value	37,205	21,440
Mortgage-backed securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	102,749	85,649
Gross Unrealized Gains	3,500	979
Gross Unrealized Losses		(43)
Fair Value	106,249	86,585
Obligations of states and political subdivisions
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	101,361	80,656
Gross Unrealized Gains	2,321	1,111
Gross Unrealized Losses	(3)	(59)
Fair Value	$ 103,679	$ 81,708

[1]	Derived from audited consolidated financial statements.

Securities - Maturities and Rea

Securities - Maturities and Realized Gains and Losses (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020USD ($)	Jun. 30, 2019USD ($)security	Jun. 30, 2020USD ($)	Jun. 30, 2019USD ($)security	Dec. 31, 2019USD ($)
Amortized Cost
Due in one year or less	$ 63,267		$ 63,267
Due after one year through five years	139,191		139,191
Due after five years through ten years	36,488		36,488
Due after ten years	2,232		2,232
Amortized Cost	241,178		241,178		$ 187,759
Fair Value
Due in one year or less	63,568		63,568
Due after one year through five years	143,546		143,546
Due after five years through ten years	37,698		37,698
Due after ten years	2,321		2,321
Fair Value	247,133		247,133		$ 189,733	[1]
Gross realized gains and losses on and the proceeds from sales, maturities and calls of securities
Proceeds related to sales of assets acquired			8,004
Number of securities sales \| security		0		0
Gross realized gains	3	$ 1	7	$ 5
Net realized gains	3	1	7	5
Proceeds from sales, maturities, calls and paydowns of securities	$ 31,717	$ 17,982	70,780	$ 33,639
Peoples Bankshares, Incorporated (Peoples)
Gross realized gains and losses on and the proceeds from sales, maturities and calls of securities
Proceeds related to sales of assets acquired			$ 5,990

[1]	Derived from audited consolidated financial statements.

Securities - Pledged as Collate

Securities - Pledged as Collateral (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Available for sale securities
Amortized Cost	$ 241,178	$ 187,759
Fair Value	247,133	189,733	[1]
Securities Pledged as Collateral
Available for sale securities
Amortized Cost	118,550	126,220
Fair Value	$ 122,580	$ 127,470

[1]	Derived from audited consolidated financial statements.

Securities - Unrealized Loss Po

Securities - Unrealized Loss Positions (Details)	6 Months Ended
Securities - Unrealized Loss Positions (Details)	Jun. 30, 2020USD ($)security	Dec. 31, 2019USD ($)
Fair value
Less Than 12 Months, Fair Value	$ 15,732,000	$ 19,542,000
12 Months or More, Fair Value		15,628,000
Total Fair Value	15,732,000	35,170,000
Unrealized Loss
Less Than 12 Months, Unrealized Loss	19,000	71,000
12 Months or More, Unrealized Loss		48,000
Total Unrealized Loss	$ 19,000	119,000
Other information
Number of positions considered temporarily impaired \| security	11
Debt securities considered temporarily impaired	$ 15,732,000	35,170,000
Other than temporary impairment	0
U.S. government agencies and corporations
Fair value
Less Than 12 Months, Fair Value	14,320,000	6,256,000
12 Months or More, Fair Value		4,094,000
Total Fair Value	14,320,000	10,350,000
Unrealized Loss
Less Than 12 Months, Unrealized Loss	16,000	11,000
12 Months or More, Unrealized Loss		6,000
Total Unrealized Loss	16,000	17,000
Other information
Debt securities considered temporarily impaired	14,320,000	10,350,000
Mortgage-backed securities
Fair value
Less Than 12 Months, Fair Value		4,099,000
12 Months or More, Fair Value		10,166,000
Total Fair Value		14,265,000
Unrealized Loss
Less Than 12 Months, Unrealized Loss		7,000
12 Months or More, Unrealized Loss		36,000
Total Unrealized Loss		43,000
Other information
Debt securities considered temporarily impaired		14,265,000
Obligations of states and political subdivisions
Fair value
Less Than 12 Months, Fair Value	1,412,000	9,187,000
12 Months or More, Fair Value		1,368,000
Total Fair Value	1,412,000	10,555,000
Unrealized Loss
Less Than 12 Months, Unrealized Loss	3,000	53,000
12 Months or More, Unrealized Loss		6,000
Total Unrealized Loss	3,000	59,000
Other information
Debt securities considered temporarily impaired	$ 1,412,000	$ 10,555,000

Securities - Restricted Stocks

Securities - Restricted Stocks and others (Details) - USD ($)	6 Months Ended
	Jun. 30, 2020	Dec. 31, 2019	[1]
Securities
Investment in restricted stock	$ 3,210,000
Investment in restricted stocks	3,209,000	$ 3,257,000
Restricted stocks, other-than-temporary impairment	$ 0

[1]	Derived from audited consolidated financial statements.

Loans - Major Classifications o

Loans - Major Classifications of Loans (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Loans
Loans	$ 1,328,990	$ 1,115,191
Less allowance for loan losses	(36,094)	(32,873)
Loans, net	1,292,896	1,082,318	[1]
Real estate - residential mortgage
Loans
Loans	205,011	181,295
Real estate - construction
Loans
Loans	72,094	54,246
Commercial, financial and agricultural
Loans
Loans	682,817	500,812
Equity lines
Loans
Loans	52,697	52,083
Consumer
Loans
Loans	15,722	13,756
Amount included related to demand deposit overdrafts	173	449
Consumer finance
Loans
Loans	$ 300,649	$ 312,999

[1]	Derived from audited consolidated financial statements.

Loans - Loans Acquired (Details

Loans - Loans Acquired (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Loans
Outstanding principal balance	$ 135,562	$ 34,101
Carrying amount
Total acquired loans	122,379	27,127
Real estate - residential mortgage
Carrying amount
Total acquired loans	24,262	7,142
Real estate - construction
Carrying amount
Total acquired loans	3,762
Commercial, financial and agricultural
Carrying amount
Total acquired loans	79,706	11,901
Equity lines
Carrying amount
Total acquired loans	11,844	8,081
Consumer
Carrying amount
Total acquired loans	2,805	3
PCI Loans
Loans
Outstanding principal balance	18,591	6,262
Carrying amount
Total acquired loans	7,831	705
PCI Loans \| Real estate - residential mortgage
Carrying amount
Total acquired loans	1,814	107
PCI Loans \| Commercial, financial and agricultural
Carrying amount
Total acquired loans	5,452	563
PCI Loans \| Equity lines
Carrying amount
Total acquired loans	77	35
PCI Loans \| Consumer
Carrying amount
Total acquired loans	488
Purchased Performing Loans
Loans
Outstanding principal balance	116,971	27,839
Carrying amount
Total acquired loans	114,548	26,422
Purchased Performing Loans \| Real estate - residential mortgage
Carrying amount
Total acquired loans	22,448	7,035
Purchased Performing Loans \| Real estate - construction
Carrying amount
Total acquired loans	3,762
Purchased Performing Loans \| Commercial, financial and agricultural
Carrying amount
Total acquired loans	74,254	11,338
Purchased Performing Loans \| Equity lines
Carrying amount
Total acquired loans	11,767	8,046
Purchased Performing Loans \| Consumer
Carrying amount
Total acquired loans	$ 2,317	$ 3

Loans - Change in Accretable Yi

Loans - Change in Accretable Yield (Details) - PCI Loans - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Change in the accretable yield
Accretable yield, balance at beginning of period	$ 4,721	$ 5,987
Additions	3,372
Accretion	(1,687)	(1,760)
Reclassification of nonaccreatable difference due to improvement in expected cash flows	923	727
Other changes, net	115	349
Accretable yield, balance at end of period	$ 7,444	$ 5,303

Loans - Loans on Nonaccrual Sta

Loans - Loans on Nonaccrual Status (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Loans on nonaccrual status
Loans on nonaccrual status	$ 2,135	$ 2,495
Real estate - residential mortgage
Loans on nonaccrual status
Loans on nonaccrual status	980	1,526
Commercial, financial and agricultural \| Commercial business lending
Loans on nonaccrual status
Loans on nonaccrual status		11
Equity lines
Loans on nonaccrual status
Loans on nonaccrual status	244	229
Consumer
Loans on nonaccrual status
Loans on nonaccrual status	542	118
Consumer finance
Loans on nonaccrual status
Loans on nonaccrual status	$ 369	$ 611

Loans - Past Due Status (Detail

Loans - Past Due Status (Details) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Loans on nonaccrual status
Total Past Due	$ 8,258,000	$ 16,299,000
Current	1,312,901,000	1,098,187,000
Total Loans	1,328,990,000	1,115,191,000
90+ days past due and accruing	291,000	109,000
Additional disclosure for nonaccrual loans
Current, nonaccrual status	649,000	547,000
Nonaccrual loans, 30-59 days past due		197,000
Nonaccrual loans, 60-89 days past due	19,000	10,000
Nonaccrual loans, 90+ days past due	1,040,000	1,740,000
Nonaccrual loans, PCI	427,000
PCI
Loans on nonaccrual status
PCI	7,831,000	705,000
30-59 Days Past Due
Loans on nonaccrual status
Total Past Due	5,912,000	12,784,000
60-89 Days Past Due
Loans on nonaccrual status
Total Past Due	1,047,000	1,665,000
90+ Days Past Due
Loans on nonaccrual status
Total Past Due	1,299,000	1,850,000
Real estate - residential mortgage
Loans on nonaccrual status
Total Past Due	1,702,000	2,605,000
Current	201,495,000	178,583,000
Total Loans	205,011,000	181,295,000
90+ days past due and accruing	291,000
Real estate - residential mortgage \| PCI
Loans on nonaccrual status
PCI	1,814,000	107,000
Real estate - residential mortgage \| 30-59 Days Past Due
Loans on nonaccrual status
Total Past Due	537,000	1,428,000
Real estate - residential mortgage \| 60-89 Days Past Due
Loans on nonaccrual status
Total Past Due	285,000	161,000
Real estate - residential mortgage \| 90+ Days Past Due
Loans on nonaccrual status
Total Past Due	880,000	1,016,000
Equity lines
Loans on nonaccrual status
Total Past Due	97,000	508,000
Current	52,524,000	51,540,000
Total Loans	52,697,000	52,083,000
90+ days past due and accruing		109,000
Equity lines \| PCI
Loans on nonaccrual status
PCI	76,000	35,000
Equity lines \| 30-59 Days Past Due
Loans on nonaccrual status
Total Past Due	47,000	229,000
Equity lines \| 60-89 Days Past Due
Loans on nonaccrual status
Total Past Due		56,000
Equity lines \| 90+ Days Past Due
Loans on nonaccrual status
Total Past Due	50,000	223,000
Consumer
Loans on nonaccrual status
Total Past Due	57,000	30,000
Current	15,176,000	13,726,000
Total Loans	15,722,000	13,756,000
Consumer \| PCI
Loans on nonaccrual status
PCI	489,000
Consumer \| 30-59 Days Past Due
Loans on nonaccrual status
Total Past Due		20,000
Consumer \| 60-89 Days Past Due
Loans on nonaccrual status
Total Past Due	57,000	10,000
Consumer finance
Loans on nonaccrual status
Total Past Due	6,170,000	13,065,000
Current	294,479,000	299,934,000
Total Loans	300,649,000	312,999,000
Consumer finance \| 30-59 Days Past Due
Loans on nonaccrual status
Total Past Due	5,096,000	11,034,000
Consumer finance \| 60-89 Days Past Due
Loans on nonaccrual status
Total Past Due	705,000	1,420,000
Consumer finance \| 90+ Days Past Due
Loans on nonaccrual status
Total Past Due	369,000	611,000
Construction lending \| Real estate - construction
Loans on nonaccrual status
Current	56,382,000	40,943,000
Total Loans	56,382,000	40,943,000
Consumer lot lending \| Real estate - construction
Loans on nonaccrual status
Current	15,712,000	13,303,000
Total Loans	15,712,000	13,303,000
Commercial real estate lending \| Commercial, financial and agricultural
Loans on nonaccrual status
Total Past Due	232,000
Current	415,999,000	325,991,000
Total Loans	421,683,000	326,554,000
Commercial real estate lending \| Commercial, financial and agricultural \| PCI
Loans on nonaccrual status
PCI	5,452,000	563,000
Commercial real estate lending \| Commercial, financial and agricultural \| 30-59 Days Past Due
Loans on nonaccrual status
Total Past Due	232,000
Land acquisition and development lending \| Commercial, financial and agricultural
Loans on nonaccrual status
Current	38,121,000	42,891,000
Total Loans	38,121,000	42,891,000
Builder line lending \| Commercial, financial and agricultural
Loans on nonaccrual status
Current	22,172,000	26,373,000
Total Loans	22,172,000	26,373,000
Commercial business lending \| Commercial, financial and agricultural
Loans on nonaccrual status
Total Past Due		91,000
Current	200,841,000	104,903,000
Total Loans	$ 200,841,000	104,994,000
Commercial business lending \| Commercial, financial and agricultural \| 30-59 Days Past Due
Loans on nonaccrual status
Total Past Due		73,000
Commercial business lending \| Commercial, financial and agricultural \| 60-89 Days Past Due
Loans on nonaccrual status
Total Past Due		$ 18,000

Loans - Troubled Debt Restructu

Loans - Troubled Debt Restructurings (Details)	3 Months Ended		6 Months Ended
Loans - Troubled Debt Restructurings (Details)	Jun. 30, 2020USD ($)loan	Jun. 30, 2019USD ($)loan	Jun. 30, 2020USD ($)loan	Jun. 30, 2019USD ($)loan
Loan modifications classified as troubled debt restructurings
Number of Loans \| loan	0	1	1	1
Recorded Investment		$ 121,000	$ 84,000	$ 121,000
TDR payment default period			12 months
Period determining when a past due TDR becomes a subsequent default			90 days
Recorded Investment, TDR payment defaults	$ 0	$ 0	$ 0	$ 0
C&F Bank
Loan modifications classified as troubled debt restructurings
Number of loans \| loan			200
Aggregate balance	$ 94,910,000		$ 94,910,000

Loans - Impaired Loans (Details

Loans - Impaired Loans (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
Loans - Impaired Loans (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Impaired loans
Impaired loans, troubled debt restructurings	$ 3,790	$ 4,350
Impaired loans, Unpaid Principal Balance	4,540	5,511
Impaired loans, Recorded Investment in Loans without Specific Reserve	1,185	2,227
Impaired loans, Recorded Investment in Loans with Specific Reserve	3,192	3,047,000
Impaired loans, Related Allowance	248	267
Impaired loans, Average Balance	4,519	5,242
Impaired loans, Interest Income Recognized	82	239
Real estate - residential mortgage
Impaired loans
Impaired loans, Unpaid Principal Balance	2,892	3,891
Impaired loans, Recorded Investment in Loans without Specific Reserve	1,072	2,192
Impaired loans, Recorded Investment in Loans with Specific Reserve	1,677	1,479,000
Impaired loans, Related Allowance	69	72
Impaired loans, Average Balance	2,875	3,506
Impaired loans, Interest Income Recognized	44	155
Commercial, financial and agricultural \| Commercial real estate lending
Impaired loans
Impaired loans, Unpaid Principal Balance	1,401	1,459
Impaired loans, Recorded Investment in Loans without Specific Reserve		4
Impaired loans, Recorded Investment in Loans with Specific Reserve	1,401	1,447,000
Impaired loans, Related Allowance	72	77
Impaired loans, Average Balance	1,409	1,581
Impaired loans, Interest Income Recognized	37	82
Equity lines
Impaired loans
Impaired loans, Unpaid Principal Balance	121	31
Impaired loans, Recorded Investment in Loans without Specific Reserve	113	31
Impaired loans, Average Balance	120	32
Impaired loans, Interest Income Recognized	1	2
Consumer
Impaired loans
Impaired loans, Unpaid Principal Balance	126	130
Impaired loans, Recorded Investment in Loans with Specific Reserve	114	121,000
Impaired loans, Related Allowance	107	118
Impaired loans, Average Balance	$ 115	$ 123

Allowance for Loan Losses - Cha

Allowance for Loan Losses - Change in Allowance for Loan Losses (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Allowance balance attributable to loans:
Balance at the beginning of period	$ 32,873	$ 34,023
Provision charged to operations	6,250	4,205
Loans charged off	(5,577)	(7,202)
Recoveries of loans previously charged off	2,548	2,375
Balance at the end of period	36,094	33,401
Real estate - residential mortgage
Allowance balance attributable to loans:
Balance at the beginning of period	2,080	2,246
Provision charged to operations	285	(68)
Loans charged off	(4)	(45)
Recoveries of loans previously charged off	64	9
Balance at the end of period	2,425	2,142
Real estate - construction
Allowance balance attributable to loans:
Balance at the beginning of period	681	727
Provision charged to operations	302	23
Balance at the end of period	983	750
Commercial, financial and agricultural
Allowance balance attributable to loans:
Balance at the beginning of period	7,121	6,688
Provision charged to operations	1,724	218
Loans charged off	(18)	(29)
Recoveries of loans previously charged off	2	3
Balance at the end of period	8,829	6,880
Equity lines
Allowance balance attributable to loans:
Balance at the beginning of period	733	1,106
Provision charged to operations	56	(225)
Balance at the end of period	789	881
Consumer
Allowance balance attributable to loans:
Balance at the beginning of period	465	257
Provision charged to operations	33	162
Loans charged off	(133)	(162)
Recoveries of loans previously charged off	105	115
Balance at the end of period	470	372
Consumer finance
Allowance balance attributable to loans:
Balance at the beginning of period	21,793	22,999
Provision charged to operations	3,850	4,095
Loans charged off	(5,422)	(6,966)
Recoveries of loans previously charged off	2,377	2,248
Balance at the end of period	$ 22,598	$ 22,376

Allowance for Loan Losses - All

Allowance for Loan Losses - Allowance and Loans by Impairment Methodology (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019	Jun. 30, 2019	Dec. 31, 2018
Allowance balance attributable to loans:
Individually evaluated for impairment	$ 248	$ 267
Collectively evaluated for impairment	35,846	32,606
Total allowance	36,094	32,873	$ 33,401	$ 34,023
Loans:
Individually evaluated for impairment	4,377	5,274
Collectively evaluated for impairment	1,316,782	1,109,212
Acquired loans - PCI	7,831	705
Total loans	1,328,990	1,115,191
Real estate - residential mortgage
Allowance balance attributable to loans:
Individually evaluated for impairment	69	72
Collectively evaluated for impairment	2,356	2,008
Total allowance	2,425	2,080	2,142	2,246
Loans:
Individually evaluated for impairment	2,749	3,671
Collectively evaluated for impairment	200,448	177,517
Acquired loans - PCI	1,814	107
Total loans	205,011	181,295
Real estate - construction
Allowance balance attributable to loans:
Collectively evaluated for impairment	983	681
Total allowance	983	681	750	727
Loans:
Collectively evaluated for impairment	72,094	54,246
Total loans	72,094	54,246
Commercial, financial and agricultural
Allowance balance attributable to loans:
Individually evaluated for impairment	72	77
Collectively evaluated for impairment	8,757	7,044
Total allowance	8,829	7,121	6,880	6,688
Loans:
Individually evaluated for impairment	1,401	1,451
Collectively evaluated for impairment	675,964	498,798
Acquired loans - PCI	5,452	563
Total loans	682,817	500,812
Equity lines
Allowance balance attributable to loans:
Collectively evaluated for impairment	789	733
Total allowance	789	733	881	1,106
Loans:
Individually evaluated for impairment	113	31
Collectively evaluated for impairment	52,508	52,017
Acquired loans - PCI	76	35
Total loans	52,697	52,083
Consumer
Allowance balance attributable to loans:
Individually evaluated for impairment	107	118
Collectively evaluated for impairment	363	347
Total allowance	470	465	372	257
Loans:
Individually evaluated for impairment	114	121
Collectively evaluated for impairment	15,119	13,635
Acquired loans - PCI	489
Total loans	15,722	13,756
Consumer finance
Allowance balance attributable to loans:
Collectively evaluated for impairment	22,598	21,793
Total allowance	22,598	21,793	$ 22,376	$ 22,999
Loans:
Collectively evaluated for impairment	300,649	312,999
Total loans	$ 300,649	$ 312,999

Allowance for Loan Losses - Cre

Allowance for Loan Losses - Credit Quality Indicators (Details) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Allowance for loan losses
Loans, excluding consumer finance	$ 1,028,341,000	$ 802,192,000
Pass
Allowance for loan losses
Loans, excluding consumer finance	983,838,000	783,963,000
Special Mention
Allowance for loan losses
Loans, excluding consumer finance	39,434,000	15,383,000
Substandard
Allowance for loan losses
Loans, excluding consumer finance	3,303,000	962,000
Substandard Nonaccrual
Allowance for loan losses
Loans, excluding consumer finance	1,766,000	1,884,000
Real estate - residential mortgage
Allowance for loan losses
Loans, excluding consumer finance	205,011,000	181,295,000
Real estate - residential mortgage \| Pass
Allowance for loan losses
Loans, excluding consumer finance	201,678,000	177,049,000
Real estate - residential mortgage \| Special Mention
Allowance for loan losses
Loans, excluding consumer finance	1,511,000	1,839,000
Real estate - residential mortgage \| Substandard
Allowance for loan losses
Loans, excluding consumer finance	842,000	881,000
Real estate - residential mortgage \| Substandard Nonaccrual
Allowance for loan losses
Loans, excluding consumer finance	980,000	1,526,000
Real estate - construction \| Construction lending
Allowance for loan losses
Loans, excluding consumer finance	56,382,000	40,943,000
Real estate - construction \| Construction lending \| Pass
Allowance for loan losses
Loans, excluding consumer finance	56,382,000	40,943,000
Real estate - construction \| Consumer lot lending
Allowance for loan losses
Loans, excluding consumer finance	15,712,000	13,303,000
Real estate - construction \| Consumer lot lending \| Pass
Allowance for loan losses
Loans, excluding consumer finance	15,712,000	13,303,000
Commercial, financial and agricultural \| Commercial real estate lending
Allowance for loan losses
Loans, excluding consumer finance	421,683,000	326,554,000
Commercial, financial and agricultural \| Commercial real estate lending \| Pass
Allowance for loan losses
Loans, excluding consumer finance	393,105,000	323,218,000
Commercial, financial and agricultural \| Commercial real estate lending \| Special Mention
Allowance for loan losses
Loans, excluding consumer finance	26,125,000	3,266,000
Commercial, financial and agricultural \| Commercial real estate lending \| Substandard
Allowance for loan losses
Loans, excluding consumer finance	2,453,000	70,000
Commercial, financial and agricultural \| Land acquisition and development lending
Allowance for loan losses
Loans, excluding consumer finance	38,121,000	42,891,000
Commercial, financial and agricultural \| Land acquisition and development lending \| Pass
Allowance for loan losses
Loans, excluding consumer finance	30,575,000	33,870,000
Commercial, financial and agricultural \| Land acquisition and development lending \| Special Mention
Allowance for loan losses
Loans, excluding consumer finance	7,546,000	9,021,000
Commercial, financial and agricultural \| Builder line lending
Allowance for loan losses
Loans, excluding consumer finance	22,172,000	26,373,000
Commercial, financial and agricultural \| Builder line lending \| Pass
Allowance for loan losses
Loans, excluding consumer finance	22,172,000	25,995,000
Commercial, financial and agricultural \| Builder line lending \| Special Mention
Allowance for loan losses
Loans, excluding consumer finance		378,000
Commercial, financial and agricultural \| Commercial business lending
Allowance for loan losses
Loans, excluding consumer finance	200,841,000	104,994,000
Commercial, financial and agricultural \| Commercial business lending \| Pass
Allowance for loan losses
Loans, excluding consumer finance	196,755,000	104,291,000
Commercial, financial and agricultural \| Commercial business lending \| Special Mention
Allowance for loan losses
Loans, excluding consumer finance	4,086,000	692,000
Commercial, financial and agricultural \| Commercial business lending \| Substandard Nonaccrual
Allowance for loan losses
Loans, excluding consumer finance		11,000
Equity lines
Allowance for loan losses
Loans, excluding consumer finance	52,697,000	52,083,000
Equity lines \| Pass
Allowance for loan losses
Loans, excluding consumer finance	52,340,000	51,662,000
Equity lines \| Special Mention
Allowance for loan losses
Loans, excluding consumer finance	105,000	181,000
Equity lines \| Substandard
Allowance for loan losses
Loans, excluding consumer finance	8,000	11,000
Equity lines \| Substandard Nonaccrual
Allowance for loan losses
Loans, excluding consumer finance	244,000	229,000
Consumer
Allowance for loan losses
Loans, excluding consumer finance	15,722,000	13,756,000
Consumer \| Pass
Allowance for loan losses
Loans, excluding consumer finance	15,119,000	13,632,000
Consumer \| Special Mention
Allowance for loan losses
Loans, excluding consumer finance	61,000	6,000
Consumer \| Substandard Nonaccrual
Allowance for loan losses
Loans, excluding consumer finance	542,000	$ 118,000
Peoples Bankshares, Incorporated (Peoples) \| Pass
Allowance for loan losses
Loans, excluding consumer finance	93,840,000
Peoples Bankshares, Incorporated (Peoples) \| Special Mention
Allowance for loan losses
Loans, excluding consumer finance	1,770,000
Peoples Bankshares, Incorporated (Peoples) \| Substandard
Allowance for loan losses
Loans, excluding consumer finance	2,910,000
Peoples Bankshares, Incorporated (Peoples) \| Substandard Nonaccrual
Allowance for loan losses
Loans, excluding consumer finance	$ 427,000

Allowance for Loan Losses - Loa

Allowance for Loan Losses - Loans by Credit Quality Indicators - Performing and Non-Performing (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Allowance for loan losses
Loans	$ 1,328,990	$ 1,115,191
Consumer finance
Allowance for loan losses
Loans	300,649	312,999
Consumer finance \| Performing
Allowance for loan losses
Loans	300,280	312,388
Consumer finance \| Non-Performing
Allowance for loan losses
Loans	$ 369	$ 611

Goodwill and Other Intangible_3

Goodwill and Other Intangible Assets - Goodwill (Details) - USD ($) $ in Thousands		3 Months Ended	6 Months Ended
		Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Goodwill and Other Intangible Assets
Goodwill	[1]		$ 14,425
Changes in the recorded balance of goodwill		$ 0	10,766	$ 0
Changes in goodwill, by reporting unit
Balance as of the beginning of the period	[1]		14,425
Acquisition of Peoples Bankshares, Incorporated		$ 0	10,766	$ 0
Balance at the end of the period			25,191
Community Banking
Goodwill and Other Intangible Assets
Goodwill			14,468
Changes in the recorded balance of goodwill			10,766
Changes in goodwill, by reporting unit
Balance as of the beginning of the period			3,702
Acquisition of Peoples Bankshares, Incorporated			10,766
Balance at the end of the period			14,468
Consumer Finance
Goodwill and Other Intangible Assets
Goodwill			10,723
Changes in goodwill, by reporting unit
Balance as of the beginning of the period			10,723
Balance at the end of the period			$ 10,723

[1]	Derived from audited consolidated financial statements.

Goodwill and Other Intangible_4

Goodwill and Other Intangible Assets - Other Intangible Assets (Details) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Other intangible assets
Other intangible assets, net	$ 2,457,000	$ 912,000	[1]
Gross carrying amounts and accumulated amortization
Gross Carrying Amount	3,116,000	1,405,000
Accumulated Amortization	(659,000)	(493,000)
Core deposit intangible
Gross carrying amounts and accumulated amortization
Gross Carrying Amount	1,711,000
Accumulated Amortization	(86,000)
Other intangibles
Gross carrying amounts and accumulated amortization
Gross Carrying Amount	1,405,000	1,405,000
Accumulated Amortization	$ (573,000)	$ (493,000)

[1]	Derived from audited consolidated financial statements.

Goodwill and Other Intangible_5

Goodwill and Other Intangible Assets - Amortization (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Goodwill and Other Intangible Assets
Amortization of intangible assets	$ 83,000	$ 63,000	$ 166,000	$ 141,000

Equity, Other Comprehensive I_3

Equity, Other Comprehensive Income and Earnings Per Share - Equity and Noncontrolling Interest (Details) - USD ($)	3 Months Ended			6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2020	Jun. 30, 2019
Shareholders' Equity
Shares repurchased (in shares)	0	32,779		8,963	65,186
Aggregate cost of Shares repurchased		$ 1,620,000		$ 355,000	$ 3,290,000
Number of shares withheld from employees to satisfy tax withholding obligations				5,069	4,842
Issuance of noncontrolling interest					$ 490,000
C&F Select LLC
Shareholders' Equity
Ownership interest issued (as a percent)			49.00%
Issuance of noncontrolling interest			$ 490,000

Equity, Other Comprehensive I_4

Equity, Other Comprehensive Income and Earnings Per Share - Accumulated Other Comprehensive Loss, Net (Details) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Equity, Other Comprehensive Income and Earnings Per Share
Deferred taxes included in AOCI	$ 303,000	$ 604,000
Net unrealized gains on securities	4,705,000	1,560,000
Net unrecognized losses on cash flow hedges	(1,654,000)	(69,000)
Net unrecognized losses on defined benefit plan	(3,689,000)	(3,740,000)
Total accumulated other comprehensive loss, net	$ (638,000)	$ (2,249,000)	[1]

[1]	Derived from audited consolidated financial statements.

Equity, Other Comprehensive I_5

Equity, Other Comprehensive Income and Earnings Per Share - Earnings Per Share (EPS) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Components of earnings per share calculations
Net income attributable to C&F Financial Corporation	$ 3,746	$ 5,843	$ 7,324	$ 9,614
Weighted average shares outstanding-basic and diluted	3,647,707	3,463,277	3,646,161	3,473,875

Employee Benefit Plans (Details

Employee Benefit Plans (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Employee Benefit Plans (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Components of net periodic benefit cost
Service cost, included in salaries and employee benefits	$ 415	$ 316	$ 801	$ 609
Other components of net periodic benefit cost:
Interest cost	140	151	275	304
Expected return on plan assets	(371)	(319)	(745)	(649)
Amortization of prior service credit	(17)	(17)	(34)	(34)
Recognized net actuarial losses	57	52	99	94
Other components of net periodic benefit cost, included in other noninterest income	(191)	(133)	(405)	(285)
Net periodic benefit cost	$ 224	$ 183	$ 396	$ 324

Fair Value of Assets and Liab_3

Fair Value of Assets and Liabilities - Investments in small business investment companies (Details) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2020USD ($)	Jun. 30, 2020USD ($)
Fair Value of Assets and Liabilities
Fair value of investment in small business investment companies	$ 1,430	$ 1,430
Unrealized losses	$ 124	$ 124

Fair Value of Assets and Liab_4

Fair Value of Assets and Liabilities - Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Securities available for sale
Securities available for sale	$ 247,133	$ 189,733	[1]
Interest rate swaps on loans \| Cash flow hedges
Liabilities:
Derivatives	2,273	145
Recurring
Securities available for sale
Securities available for sale	247,133	189,733
Loans held for sale	180,137	90,500
Total assets measured at fair value	440,714	283,778
Liabilities:
Derivatives	12,109	2,632
Recurring \| Cash flow hedges
Liabilities:
Derivatives	2,273	145
Recurring \| IRLC
Securities available for sale
Derivatives	3,701	1,083
Recurring \| Interest rate swaps on loans
Securities available for sale
Derivatives	9,743	2,462
Liabilities:
Derivatives	9,743	2,462
Recurring \| Forward sales of TBA securities
Liabilities:
Derivatives	93	25
Level 2 \| Recurring
Securities available for sale
Securities available for sale	247,133	189,733
Loans held for sale	180,137	90,500
Total assets measured at fair value	440,714	283,778
Liabilities:
Derivatives	12,109	2,632
Level 2 \| Recurring \| Cash flow hedges
Liabilities:
Derivatives	2,273	145
Level 2 \| Recurring \| IRLC
Securities available for sale
Derivatives	3,701	1,083
Level 2 \| Recurring \| Interest rate swaps on loans
Securities available for sale
Derivatives	9,743	2,462
Liabilities:
Derivatives	9,743	2,462
Level 2 \| Recurring \| Forward sales of TBA securities
Liabilities:
Derivatives	93	25
U.S. government agencies and corporations
Securities available for sale
Securities available for sale	37,205	21,440
U.S. government agencies and corporations \| Recurring
Securities available for sale
Securities available for sale	37,205	21,440
U.S. government agencies and corporations \| Level 2 \| Recurring
Securities available for sale
Securities available for sale	37,205	21,440
Mortgage-backed securities
Securities available for sale
Securities available for sale	106,249	86,585
Mortgage-backed securities \| Recurring
Securities available for sale
Securities available for sale	106,249	86,585
Mortgage-backed securities \| Level 2 \| Recurring
Securities available for sale
Securities available for sale	106,249	86,585
Obligations of states and political subdivisions
Securities available for sale
Securities available for sale	103,679	81,708
Obligations of states and political subdivisions \| Recurring
Securities available for sale
Securities available for sale	103,679	81,708
Obligations of states and political subdivisions \| Level 2 \| Recurring
Securities available for sale
Securities available for sale	$ 103,679	$ 81,708

[1]	Derived from audited consolidated financial statements.

Fair Value of Assets and Liab_5

Fair Value of Assets and Liabilities - Financial Assets Measured at Fair Value on Non-Recurring Basis (Details) $ in Thousands	Jun. 30, 2020USD ($)	Dec. 31, 2019USD ($)
Fair value assets and liabilities - Nonrecurring Basis
Impaired loans measured for impairment using the fair value of the collateral	$ 0
Nonrecurring
Fair value assets and liabilities - Nonrecurring Basis
Financial assets measured at fair value on a non-recurring basis	268	$ 370
Nonrecurring \| Impaired loans, net
Fair value assets and liabilities - Nonrecurring Basis
Financial assets measured at fair value on a non-recurring basis		102
Nonrecurring \| Other real estate owned, net
Fair value assets and liabilities - Nonrecurring Basis
Financial assets measured at fair value on a non-recurring basis	268	268
Level 3 \| Nonrecurring
Fair value assets and liabilities - Nonrecurring Basis
Financial assets measured at fair value on a non-recurring basis	$ 268	370
Other real estate owned, net, valuation technique	cffi:ValuationTechniqueAppraisalsMember
Other real estate owned, net, measurement input	us-gaap:MeasurementInputDiscountRateMember
Level 3 \| Nonrecurring \| Minimum
Fair value assets and liabilities - Nonrecurring Basis
Other real estate owned, input	0.33
Level 3 \| Nonrecurring \| Impaired loans, net
Fair value assets and liabilities - Nonrecurring Basis
Financial assets measured at fair value on a non-recurring basis		102
Level 3 \| Nonrecurring \| Other real estate owned, net
Fair value assets and liabilities - Nonrecurring Basis
Financial assets measured at fair value on a non-recurring basis	$ 268	$ 268

Fair Value of Assets and Liab_6

Fair Value of Assets and Liabilities - Carrying Value and Estimated Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Assets:
Securities available for sale	$ 247,133	$ 189,733	[1]
Bank-owned life insurance	19,862	16,044	[1]
Carrying Value
Assets:
Cash and short-term investments	80,300	165,433
Securities available for sale	247,133	189,733
Loans, net	1,292,896	1,082,318
Loans held for sale	180,137	90,500
Bank-owned life insurance	19,862	16,044
Accrued interest receivable	8,104	6,776
Financial liabilities:
Demand deposits	1,153,248	869,194
Time deposits	492,541	422,056
Borrowings	91,336	161,170
Accrued interest payable	1,210	1,291
Total Fair Value
Assets:
Cash and short-term investments	80,300	165,433
Securities available for sale	247,133	189,733
Loans, net	1,299,598	1,082,783
Loans held for sale	180,137	90,500
Bank-owned life insurance	19,862	16,044
Accrued interest receivable	8,104	6,776
Financial liabilities:
Demand deposits	1,153,248	869,194
Time deposits	501,932	423,605
Borrowings	92,667	154,964
Accrued interest payable	1,210	1,291
Total Fair Value \| Level 1
Assets:
Cash and short-term investments	80,300	165,433
Accrued interest receivable	8,104	6,776
Financial liabilities:
Demand deposits	1,153,248	869,194
Accrued interest payable	1,210	1,291
Total Fair Value \| Level 2
Assets:
Securities available for sale	247,133	189,733
Loans held for sale	180,137	90,500
Bank-owned life insurance	19,862	16,044
Financial liabilities:
Time deposits	501,932	423,605
Borrowings	92,667	154,964
Total Fair Value \| Level 3
Assets:
Loans, net	1,299,598	1,082,783
IRLC \| Carrying Value
Assets:
Derivatives	3,701	1,083
IRLC \| Total Fair Value
Assets:
Derivatives	3,701	1,083
IRLC \| Total Fair Value \| Level 2
Assets:
Derivatives	3,701	1,083
Interest rate swaps on loans \| Carrying Value
Assets:
Derivatives	9,743	2,462
Financial liabilities:
Derivatives	9,743	2,462
Interest rate swaps on loans \| Total Fair Value
Assets:
Derivatives	9,743	2,462
Financial liabilities:
Derivatives	9,743	2,462
Interest rate swaps on loans \| Total Fair Value \| Level 2
Assets:
Derivatives	9,743	2,462
Financial liabilities:
Derivatives	9,743	2,462
Forward sales of TBA securities \| Carrying Value
Financial liabilities:
Derivatives	93	25
Forward sales of TBA securities \| Total Fair Value
Financial liabilities:
Derivatives	93	25
Forward sales of TBA securities \| Total Fair Value \| Level 2
Financial liabilities:
Derivatives	93	25
Cash flow hedges \| Carrying Value
Financial liabilities:
Derivatives	2,273	145
Cash flow hedges \| Total Fair Value
Financial liabilities:
Derivatives	2,273	145
Cash flow hedges \| Total Fair Value \| Level 2
Financial liabilities:
Derivatives	2,273	145
Cash flow hedges \| Interest rate swaps on loans
Financial liabilities:
Derivatives	$ 2,273	$ 145

[1]	Derived from audited consolidated financial statements.

Business Segments - Segment Rep

Business Segments - Segment Reporting (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020USD ($)	Jun. 30, 2019USD ($)	Jun. 30, 2020USD ($)segment	Jun. 30, 2019USD ($)	Dec. 31, 2019USD ($)	[1]
Business Segments
Number of principal business segments \| segment			3
Revenues:
Interest income	$ 23,584	$ 24,276	$ 48,362	$ 47,227
Gains on sales of loans	4,605	2,955	8,281	5,091
Other noninterest income	7,223	5,247	10,295	10,214
Total operating income	35,412	32,478	66,938	62,532
Expenses:
Provision for loan losses	3,600	1,810	6,250	4,205
Interest expense	3,330	3,651	7,505	6,955
Salaries and employee benefits	14,354	11,495	25,171	23,402
Depreciation and amortization	990	832	1,957	1,826
Other noninterest expenses	8,448	7,222	16,749	13,998
Total operating expenses	30,722	25,010	57,632	50,386
Income (loss) before income taxes	4,690	7,468	9,306	12,146
Income tax expense (benefit)	947	1,626	1,924	2,533
Net income (loss)	3,743	5,842	7,382	9,613
Total assets	1,983,204	1,567,996	1,983,204	1,567,996	$ 1,657,432
Capital expenditures	1,905	717	3,453	1,471
Operating Segments \| Community Banking
Revenues:
Interest income	14,894	15,419	30,809	29,743
Other noninterest income	2,221	2,893	4,853	5,331
Total operating income	17,115	18,312	35,662	35,074
Expenses:
Provision for loan losses	1,400	110	2,400	110
Interest expense	2,718	2,493	5,862	4,668
Salaries and employee benefits	7,640	6,873	15,700	13,851
Depreciation and amortization	829	758	1,635	1,593
Other noninterest expenses	5,020	4,382	10,020	8,450
Total operating expenses	17,607	14,616	35,617	28,672
Income (loss) before income taxes	(492)	3,696	45	6,402
Income tax expense (benefit)	(560)	625	(593)	1,041
Net income (loss)	68	3,071	638	5,361
Total assets	1,860,367	1,386,332	1,860,367	1,386,332
Capital expenditures	1,568	566	2,320	1,288
Operating Segments \| Mortgage Banking
Revenues:
Interest income	1,097	669	1,758	1,019
Gains on sales of loans	4,605	2,955	8,281	5,091
Other noninterest income	2,387	1,335	3,998	2,173
Total operating income	8,089	4,959	14,037	8,283
Expenses:
Interest expense	280	409	585	572
Salaries and employee benefits	2,272	1,611	4,117	2,758
Depreciation and amortization	73	59	145	121
Other noninterest expenses	2,166	1,276	3,817	2,458
Total operating expenses	4,791	3,355	8,664	5,909
Income (loss) before income taxes	3,298	1,604	5,373	2,374
Income tax expense (benefit)	977	422	1,509	625
Net income (loss)	2,321	1,182	3,864	1,749
Total assets	192,987	101,554	192,987	101,554
Capital expenditures	32	52	326	76
Operating Segments \| Consumer Finance
Revenues:
Interest income	9,689	10,365	19,790	20,510
Other noninterest income	80	110	197	239
Total operating income	9,769	10,475	19,987	20,749
Expenses:
Provision for loan losses	2,200	1,700	3,850	4,095
Interest expense	2,090	2,618	4,376	5,169
Salaries and employee benefits	2,134	2,069	4,377	4,254
Depreciation and amortization	45	50	91	102
Other noninterest expenses	1,057	1,361	2,398	2,684
Total operating expenses	7,526	7,798	15,092	16,304
Income (loss) before income taxes	2,243	2,677	4,895	4,445
Income tax expense (benefit)	605	728	1,327	1,211
Net income (loss)	1,638	1,949	3,568	3,234
Total assets	301,372	309,705	301,372	309,705
Capital expenditures	305	32	807	40
Operating Segments \| Other
Revenues:
Interest income		2		4
Other noninterest income	2,535	909	1,247	2,471
Total operating income	2,535	911	1,247	2,475
Expenses:
Interest expense	338	310	677	595
Salaries and employee benefits	2,308	942	977	2,539
Depreciation and amortization	43	(35)	86	10
Other noninterest expenses	205	203	514	406
Total operating expenses	2,894	1,420	2,254	3,550
Income (loss) before income taxes	(359)	(509)	(1,007)	(1,075)
Income tax expense (benefit)	(75)	(149)	(319)	(344)
Net income (loss)	(284)	(360)	(688)	(731)
Total assets	21,834	19,696	21,834	19,696
Capital expenditures		67		67
Eliminations
Revenues:
Interest income	(2,096)	(2,179)	(3,995)	(4,049)
Total operating income	(2,096)	(2,179)	(3,995)	(4,049)
Expenses:
Interest expense	(2,096)	(2,179)	(3,995)	(4,049)
Total operating expenses	(2,096)	(2,179)	(3,995)	(4,049)
Total assets	$ (393,356)	$ (249,291)	$ (393,356)	$ (249,291)

[1]	Derived from audited consolidated financial statements.

Business Segments - Merger Rela

Business Segments - Merger Related Expenses and Segment Debt (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2020USD ($)	Jun. 30, 2019USD ($)	Jun. 30, 2020USD ($)item	Jun. 30, 2019USD ($)
Business Segments
Merger related costs	$ 308,000	$ 0	$ 898,000	$ 0
Mortgage Banking
Business Segments
Number of intersegment lines of credit \| item			2
Mortgage Banking \| FHLB Advances \| Minimum
Business Segments
Variable rate, spread (as a percent)			0.50%
Mortgage Banking \| FHLB Advances \| Maximum
Business Segments
Variable rate, spread (as a percent)			1.75%
Consumer Finance
Business Segments
Floor variable rate (as a percent)			3.50%
Consumer Finance \| Minimum
Business Segments
Fixed rate (as a percent)	2.00%		2.00%
Consumer Finance \| Maximum
Business Segments
Fixed rate (as a percent)	8.00%		8.00%
Consumer Finance \| London Interbank Offered Rate (LIBOR) \| Minimum
Business Segments
Variable rate, spread (as a percent)			2.00%
Peoples Bankshares, Incorporated (Peoples)
Business Segments
Merger related costs	$ 439,000	$ 0	$ 1,400,000	$ 0
Merger related costs, after income taxes	347,000		1,130,000
Aggregated merger related costs	2,100,000		2,100,000
Peoples Bankshares, Incorporated (Peoples) \| Community Banking
Business Segments
Merger related costs			1,300,000
Merger related costs, after income taxes			1,030,000
Peoples Bankshares, Incorporated (Peoples) \| Community Banking \| Salaries and benefits expense
Business Segments
Merger related costs	50,000		119,000
Peoples Bankshares, Incorporated (Peoples) \| Community Banking \| Other noninterest expense
Business Segments
Merger related costs	$ 389,000		879,000
Peoples Bankshares, Incorporated (Peoples) \| Community Banking \| Other noninterest income
Business Segments
Merger related costs			$ 298,000

Commitments and Contingent Li_2

Commitments and Contingent Liabilities - Loan Commitments and Standby letters of credit (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Standby Letters of Credit
Commitments and Contingent Liabilities
Face amount of asset	$ 17,180	$ 16,600
Loan commitments
Commitments and Contingent Liabilities
Face amount of asset	$ 303,920	$ 256,150

Commitments and Contingent Li_3

Commitments and Contingent Liabilities - Other (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Commitments and Contingent Liabilities
Provision for indemnifications	$ 156,000	$ 0	$ 163,000	$ 0
Mortgage Banking Segment
Commitments and Contingent Liabilities
Recourse period for early payment default, minimum			90 days
Recourse period for early payment default, maximum			1 year
Indemnification reserve for recourse provisions
Commitments and Contingent Liabilities
Allowance for indemnifications	$ 2,640,000		$ 2,640,000		$ 2,480,000

Derivatives Financial Instrumen

Derivatives Financial Instruments (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Derivatives and other information
Changes in fair value of loan swaps	$ 0
Unpaid principal on mortgage loans held for sale	4,540	$ 5,511
Other assets
Derivatives and other information
Cash collateral	11,790	2,520
Forward sales of TBA securities \| Not designated as hedges
Derivatives and other information
Notional amount	20,750	24,000
Derivative Liability	93	25
Interest rate swaps on loans \| Cash flow hedges
Derivatives and other information
Notional amount	25,000	25,000
Derivative Liability	2,273	145
Matched interest rate swap with borrower \| Not designated as hedges
Derivatives and other information
Notional amount	85,282	74,266
Derivative Asset	9,743	2,454
Derivative Liability		8
Matched interest rate swap with counterparty \| Not designated as hedges
Derivatives and other information
Notional amount	85,282	74,266
Derivative Asset		8
Derivative Liability	9,743	2,454
IRLC \| Not designated as hedges
Derivatives and other information
Notional amount	247,871	75,073
Derivative Asset	3,701	1,083
Mortgage Banking Segment
Derivatives and other information
IRLCs	14,900	11,720
Unpaid principal on mortgage loans held for sale	8,840	21,980
Mortgage Banking Segment \| Best-efforts forward sales contracts
Derivatives and other information
IRLCs	232,970	63,350
Unpaid principal on mortgage loans held for sale	166,010	65,770
Mortgage loans		129,120
Mortgage Banking Segment \| Forward sales of TBA securities
Derivatives and other information
Mortgage loans	20,750	24,000
Mortgage Banking Segment \| Mandatory-delivery forward sales contracts
Derivatives and other information
Mortgage loans	1,600	$ 6,730
C&F Mortgage \| Best-efforts forward sales contracts
Derivatives and other information
Mortgage loans	$ 398,980

Other Noninterest Expenses (Det

Other Noninterest Expenses (Details) - USD ($)	3 Months Ended		6 Months Ended
Other Noninterest Expenses (Details) - USD ($)	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Other Noninterest Expenses
Data processing fees	$ 2,448,000	$ 1,974,000	$ 4,842,000	$ 3,896,000
Professional fees	738,000	789,000	1,718,000	1,353,000
Mortgage banking loan processing expenses	780,000	388,000	1,264,000	683,000
Telecommunication expenses	409,000	330,000	781,000	648,000
Marketing and advertising expenses	348,000	435,000	838,000	808,000
Travel and educational expenses	100,000	304,000	544,000	706,000
All other noninterest expenses	2,048,000	1,686,000	3,825,000	3,392,000
Total Other Noninterest Expenses	6,871,000	5,906,000	13,812,000	11,486,000
Merger related expenses	308,000	$ 0	898,000	$ 0
Merger related data processing fees	263,000		501,000
Merger related professional fees	22,000		336,000
Merger related other noninterest expenses	$ 23,000		$ 61,000