C&F Financial Corporation Announces Net Income for Second Quarter and First Six Months
C&F Financial Corporation (CFFI) reported a consolidated net income of $8.1 million for Q2 2021, a 116% increase from Q2 2020. Adjusted net income rose 102% to $8.09 million. Earnings per share were $2.19, up from $1.03 YoY, with a return on average assets of 1.50% and return on average equity of 16.49%. The first six months showed a similar trend, with net income of $15.3 million, a 107% increase YoY. The company experienced a net reversal of loan loss provisions, indicating strong asset quality amidst ongoing economic recovery.
- 116% increase in consolidated net income for Q2 2021, totaling $8.1 million.
- 102% increase in adjusted net income for Q2 2021, reaching $8.09 million.
- Earnings per share rose to $2.19 from $1.03 YoY.
- Return on average assets increased to 1.50% and return on average equity to 16.49%.
- Net reversal of provision for loan losses of $600,000 in Q2 2021, reflecting strong asset quality.
- Mortgage banking segment net income decreased by 15% for Q2 2021 YoY.
- Annualized net interest margin fell to 4.37% in Q2 2021, down from 4.61% YoY.
- Potential risks of further loan loss provisions due to economic recovery challenges.
TOANO, Va., July 22, 2021 (GLOBE NEWSWIRE) -- C&F Financial Corporation (the Corporation) (NASDAQ: CFFI), the one-bank holding company for C&F Bank, today reported quarterly consolidated net income of
Reported | Adjusted1 | |||||||||||||||
For The Quarter Ended | For The Quarter Ended | |||||||||||||||
Consolidated Financial Highlights (unaudited) | 6/30/21 | 6/30/20 | 6/30/21 | 6/30/20 | ||||||||||||
Net income (000's) | $ | 8,090 | $ | 3,743 | $ | 8,090 | $ | 4,009 | ||||||||
Earnings per share - basic and diluted | $ | 2.19 | $ | 1.03 | $ | 2.19 | $ | 1.11 | ||||||||
Annualized return on average assets | 1.50 | % | 0.77 | % | 1.50 | % | 0.82 | % | ||||||||
Annualized return on average equity | 16.49 | % | 8.41 | % | 16.49 | % | 9.00 | % |
________________________
1The Corporation uses non-GAAP measures of financial performance, including adjusted net income, adjusted earnings per share, adjusted annualized return on average assets (ROA) and adjusted annualized return on average equity (ROE), to provide meaningful information about operating performance by excluding the effects of certain items that management does not expect to have an ongoing impact on consolidated net income. Adjusted net income for the second quarter and first six months of 2020 excludes the effects of merger related expenses, branch consolidation charges and certain one-time tax benefits. For more information about these financial measures, which are not calculated in accordance with generally accepted accounting principles (GAAP), please see “Use of Certain Non-GAAP Financial Measures” and “Reconciliation of Certain Non-GAAP Financial Measures,” below.
The Corporation reported consolidated net income of
Reported | Adjusted | |||||||||||||||
For The Six Months Ended | For The Six Months Ended | |||||||||||||||
Consolidated Financial Highlights (unaudited) | 6/30/21 | 6/30/20 | 6/30/21 | 6/30/20 | ||||||||||||
Net income (000's) | $ | 15,255 | $ | 7,382 | $ | 15,255 | $ | 8,433 | ||||||||
Earnings per share - basic and diluted | $ | 4.11 | $ | 2.01 | $ | 4.11 | $ | 2.30 | ||||||||
Annualized return on average assets | 1.43 | % | 0.78 | % | 1.43 | % | 0.89 | % | ||||||||
Annualized return on average equity | 15.83 | % | 8.34 | % | 15.83 | % | 9.53 | % |
Key highlights for the second quarter and first six months of 2021 are as follows. Comparisons are to the corresponding periods in the prior year unless otherwise stated.
- The Corporation recorded a net reversal of provision for loan losses of
$600,000 on a consolidated basis for the second quarter of 2021 and a net reversal of provision for loan losses of$320,000 for the first six months of 2021 as a result of recoveries exceeding charge-offs at the consumer finance segment and decreases to the allowance for loan losses at the community banking segment and consumer finance segment as a result of strong asset quality, partially offset by loan growth. This represents a decrease in the provision for loan losses of$4.2 million and$6.6 million for the second quarter and first six months, respectively. During the second quarter of 2021, the consumer finance segment and community banking segment released a portion of the reserves recognized during 2020, as credit deterioration since the onset of the COVID-19 pandemic has so far not been experienced to the extent previously anticipated; - The community banking segment recognized net origination fees related to Paycheck Protection Program (PPP) loans of
$1.2 million and$2.1 million for the second quarter and first six months of 2021, respectively, primarily as a result of PPP loans that were forgiven or repaid; - Interest expense decreased
$1.2 million for the second quarter of 2021 and$3.0 million for the first six months of 2021 due primarily to lower rates on time deposits and a shift in funding to lower cost deposits; - Average loans outstanding at the community banking segment, excluding PPP loans, increased 2.8 percent for the second quarter and 3.4 percent for the first six months;
- Consolidated annualized net interest margin was 4.37 percent for the second quarter of 2021, compared to 4.61 percent and 4.33 percent for the second quarter of 2020 and first quarter of 2021, respectively, and was 4.35 percent for the first six months of 2021, compared to 4.76 percent for the first six months of 2020. The increase in the second quarter of 2021 compared to the first quarter of 2021 was due primarily to higher average yields on loans (including higher net origination fees recognized on PPP loans) and lower cost of deposits;
- Mortgage banking segment net income decreased 15 percent for the second quarter of 2021 and increased 17 percent for the first six months of 2021, respectively, as both periods were affected by higher margins on sales of mortgage loans, while mortgage loan originations decreased 15 percent for the second quarter of 2021 and increased 13 percent for the first six months of 2021;
- The consumer finance segment experienced net recoveries at an annualized rate of 0.07 percent of average total loans for the first six months of 2021, compared to net charge-offs of 1.99 percent for the first six months of 2020, due to borrowers generally benefitting from government stimulus measures related to the COVID-19 pandemic, continued improvement in the credit quality of purchased loans and elevated values for used autos, which result in lower charge-offs upon sale of repossessed autos; and
- The consumer finance segment’s average loan yield declined due to continued competition for non-prime auto loans and growth in higher quality, lower-yielding loans, including marine and recreational vehicle loans.
Tom Cherry, President and Chief Executive Officer of C&F Financial Corporation, commented, “We continue to see encouraging signs in the economies in our markets and in our business segments, although many of our business customers have struggled to hire needed employees. Each of our business segments has had an increase in net income for the first six months of the year. While we believe mortgage loan originations will decline in the second half of the year relative to last year, we are very optimistic about our 2021 earnings. Excluding the impact of PPP loans, loans continue to grow at both our community banking and consumer finance segments, and our asset quality remains very strong. We also continue to have growth in both consumer and business checking accounts, which has resulted in very strong core deposit growth compared to 2020. While net interest margin compression remains a challenge, we believe our diversified business strategy will continue to benefit us.”
Community Banking Segment. The community banking segment reported net income of
Adjusted net income for the community banking segment, which excludes the effects of merger related expenses, branch consolidation charges and one-time income tax benefits, was
Average loans increased
Average loan yields were higher for the second quarter of 2021 and lower for the first six months of 2021 compared to the same periods in 2020. Interest rates declined in 2020, resulting in lower repricing of variable rate loans and lower average yields on new lending, while recognition of net origination fees on PPP loans was higher for the second quarter and first six months of 2021 compared to the same periods in 2020 as a result of PPP loans that were forgiven or repaid. PPP loans earn interest at a note rate of one percent as well as net origination fees that are amortized over the contractual term of the related loan or accelerated into interest income upon repayment of the loan. Net PPP origination fees recognized in the second quarter and first six months of 2021 were
C&F Bank’s total nonperforming assets were
Mortgage Banking Segment. The mortgage banking segment reported net income of
The decrease in net income of the mortgage banking segment for the second quarter of 2021 compared to the second quarter of 2020 was due primarily to higher salaries and benefits expense and lower volume of mortgage loan originations, partially offset by higher margins on loans originated for resale and higher lender services volume. The increase in net income of the mortgage banking segment for the first six months of 2021 compared to the first six months of 2020 was due primarily to higher margins on loans originated for resale and higher fee income as a result of higher volume of mortgage loan originations and higher lender services volume, partially offset by higher expenses, primarily tied to loan production, including salaries and benefits expense. Salaries and benefits expense was higher for the second quarter and first six months of 2021 compared to the same periods in 2020 as a result of higher average rates of loan officer commissions and due to the addition of operations staff to meet the demands of higher mortgage loan production volume.
Mortgage loan originations for the mortgage banking segment were
Consumer Finance Segment. The consumer finance segment reported net income of
The increase in net income of the consumer finance segment for the second quarter and first six months of 2021 compared to the same periods in 2020 was due primarily to lower provision for loan losses, resulting from reserves recognized in 2020 related to the COVID-19 pandemic, a portion of which were released in the second quarter of 2021, and lower net charge-offs, partially offset by lower interest income due to lower average yields on loans. The average yield on loans for the second quarter and first six months of 2021 was lower compared to the same periods in 2020 due to continued competition in the non-prime automobile loan business, including the effect of a lower interest rate environment, and the consumer finance segment’s pursuing growth in higher quality, lower yielding loans, which include prime marine and recreational vehicle (RV) loans.
The consumer finance segment experienced annualized net recoveries for the first six months of 2021 of 0.07 percent of average total loans, compared to net charge-offs of 1.99 percent for the first six months of 2020. The first six months of 2021 was the first reporting period in the consumer finance segment’s history that recoveries exceeded charge-offs. The decline in the net charge-off ratio for the first six months of 2021 compared to the first six months of 2020 reflects a lower number of charge-offs during 2021, due to improvement in loan performance, and lower losses per loan charged off as a result of a strong used car market. Improvement in loan performance has resulted from the consumer finance segment continuing to purchase higher quality loans as well as borrowers benefitting from the government’s stimulus measures in response to the pandemic. At June 30, 2021, total delinquent loans as a percentage of total loans was 1.77 percent, compared to 3.08 percent at December 31, 2020 and 2.05 percent at June 30, 2020. The allowance for loan losses was
Capital and Dividends. The Corporation increased its quarterly cash dividend by 5.3 percent compared to the previous quarterly dividend, to 40 cents per share during the second quarter of 2021. This dividend, paid to shareholders on July 1, 2021, represents a payout ratio of 18.3 percent of earnings per share for the second quarter of 2021. The Board of Directors of the Corporation continually reviews the amount of cash dividends per share and the resulting dividend payout ratio in light of changes in economic conditions, current and future capital requirements, and expected future earnings.
In November 2020, the Board of Directors authorized a program, effective November 17, 2020, to repurchase up to 365,000 shares of the Corporation’s common stock through November 30, 2021. During the second quarter and first six months of 2021, the Corporation repurchased
About C&F Financial Corporation. C&F Financial Corporation’s common stock is listed for trading on The Nasdaq Stock Market under the symbol CFFI. The common stock closed at a price of
C&F Bank operates 31 banking offices and 4 commercial loan offices located throughout the Hampton to Charlottesville corridor and the Northern Neck region in Virginia and offers full wealth management services through its subsidiary C&F Wealth Management, Inc. C&F Mortgage Corporation and its subsidiary C&F Select LLC provide mortgage loan origination services through offices located in Virginia, Maryland, North Carolina, South Carolina and West Virginia. C&F Finance Company provides automobile, marine and RV loans through indirect lending programs offered in Alabama, Colorado, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Maryland, Minnesota, Missouri, New Jersey, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Texas, Virginia and West Virginia through its offices in Richmond and Hampton, Virginia.
Additional information regarding the Corporation’s products and services, as well as access to its filings with the Securities and Exchange Commission (SEC), are available on the Corporation’s website at http://www.cffc.com.
Use of Certain Non-GAAP Financial Measures. The accounting and reporting policies of the Corporation conform to GAAP in the United States and prevailing practices in the banking industry. However, certain non-GAAP measures are used by management to supplement the evaluation of the Corporation’s performance. These include adjusted net income, adjusted earnings per share, adjusted ROE, adjusted ROA, tangible book value per share, and the following fully-taxable equivalent (FTE) measures: interest income on loans-FTE, interest income on securities-FTE, total interest income-FTE and net interest income-FTE.
Management believes that the use of these non-GAAP measures provides meaningful information about operating performance by enhancing comparability with other financial periods, other financial institutions, and between different sources of interest income. The non-GAAP measures used by management enhance comparability by excluding the effects of (1) items that do not reflect ongoing operating performance, including non-recurring gains or charges, (2) balances of intangible assets, including goodwill, that vary significantly between institutions, and (3) tax benefits that are not consistent across different opportunities for investment. These non-GAAP financial measures should not be considered an alternative to GAAP-basis financial statements, and other bank holding companies may define or calculate these or similar measures differently. A reconciliation of the non-GAAP financial measures used by the Corporation to evaluate and measure the Corporation’s performance to the most directly comparable GAAP financial measures is presented below.
Forward-Looking Statements. This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act, as amended. These forward-looking statements are based on the beliefs of the Corporation’s management, as well as assumptions made by, and information currently available to, the Corporation’s management, and reflect management’s current views with respect to certain events that could have an impact on the Corporation’s future financial performance. These statements, including without limitation statements made in Mr. Cherry’s quotes, relate to expectations concerning matters that are not historical fact, may express “belief,” “intention,” “expectation,” “potential” and similar expressions, and may use the words “believe,” “expect,” “anticipate,” “estimate,” “plan,” “may,” “will,” “intend,” “should,” “could,” or similar expressions. These statements are inherently uncertain, and there can be no assurance that the underlying assumptions will prove to be accurate. Actual results could differ materially from those anticipated or implied by such statements. Forward-looking statements in this release may include, without limitation, statements regarding expected future operations and financial performance, potential effects of the COVID-19 pandemic, including on asset quality, the allowance for loan losses, provision for loan losses and interest rates, future dividend payments, strategic business initiatives and the anticipated effects thereof, including new or consolidated facilities, lending under the PPP loan program, future recognition of PPP origination fees, margin compression, mortgage loan originations, technology initiatives, our diversified business strategy, asset quality, credit quality, including the effect of PPP loans and government stimulus related to COVID-19 on credit quality, adequacy of allowances for loan losses and the level of future charge-offs, capital levels, the effect of future market and industry trends and the effects of future interest rate fluctuations. Factors that could have a material adverse effect on the operations and future prospects of the Corporation include, but are not limited to, changes in: (1) interest rates, such as volatility in short-term interest rates or yields on U.S. Treasury bonds and increases or volatility in mortgage interest rates, (2) general business conditions, as well as conditions within the financial markets, (3) general economic conditions, including unemployment levels, and slowdowns in economic growth, and particularly related to further and sustained economic impacts of the COVID-19 pandemic, the effectiveness of the Corporation’s efforts to respond to the COVID-19 pandemic, the severity and duration of the pandemic, the pace and availability of vaccinations, the pace of economic recovery when the pandemic subsides and the heightened impact it has on many of the risks described herein, (4) potential claims, damages and fines related to litigation or government actions, including litigation or actions arising from the Corporation’s participation in and administration of programs related to COVID-19, including, among other things, the PPP under the Coronavirus Aid, Recovery, and Economic Security Act, (5) the legislative/regulatory climate, regulatory initiatives with respect to financial institutions, products and services, the Consumer Financial Protection Bureau (CFPB) and the regulatory and enforcement activities of the CFPB, (6) monetary and fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Federal Reserve Board, and the effect of these policies on interest rates and business in our markets, (7) the value of securities held in the Corporation’s investment portfolios, (8) the quality or composition of the loan portfolios and the value of the collateral securing those loans, (9) the inventory level and pricing of used automobiles, including sales prices of repossessed vehicles, (10) the level of net charge-offs on loans and the adequacy of our allowance for loan losses, (11) the level of indemnification losses related to mortgage loans sold, (12) demand for loan products, (13) deposit flows, (14) the strength of the Corporation’s counterparties, (15) competition from both banks and non-banks, including competition in the non-prime automobile finance markets, (16) demand for financial services in the Corporation’s market area, (17) reliance on third parties for key services, (18) the commercial and residential real estate markets, (19) demand in the secondary residential mortgage loan markets, (20) the Corporation’s technology initiatives and other strategic initiatives, (21) the Corporation’s branch expansions and consolidations, (22) cyber threats, attacks or events, (23) expansion of C&F Bank’s product offerings, and (24) accounting principles, policies and guidelines, and elections by the Corporation thereunder. These risks and uncertainties should be considered in evaluating the forward-looking statements contained herein, and readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date of this release. For additional information on risk factors that could affect the forward-looking statements contained herein, see the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2020 and other reports filed with the SEC.
C&F Financial Corporation
Selected Financial Information
(dollars in thousands, except for per share data)
(unaudited)
Financial Condition | 6/30/2021 | 12/31/2020 | 6/30/2020 | |||||||
Interest-bearing deposits in other banks | $ | 150,741 | $ | 68,927 | $ | 64,526 | ||||
Investment securities - available for sale, at fair value | 356,886 | 286,389 | 247,133 | |||||||
Loans held for sale, at fair value | 119,038 | 214,266 | 180,137 | |||||||
Loans, net: | ||||||||||
Community Banking segment, excluding PPP loans | 967,039 | 941,713 | 923,331 | |||||||
PPP loans | 62,029 | 76,527 | 86,924 | |||||||
Mortgage Banking segment | 9,801 | 6,271 | 4,590 | |||||||
Consumer Finance segment | 309,424 | 288,739 | 278,051 | |||||||
Restricted stock, at cost | 1,027 | 1,636 | 3,209 | |||||||
Total assets | 2,168,644 | 2,086,310 | 1,983,204 | |||||||
Deposits | 1,831,562 | 1,752,173 | 1,645,789 | |||||||
Repurchase agreements | 23,570 | 20,455 | 22,648 | |||||||
Borrowings | 55,840 | 55,714 | 68,688 | |||||||
Total equity | 201,798 | 194,471 | 183,265 |
For The | For The | ||||||||||||||||
Quarter Ended | Six Months Ended | ||||||||||||||||
Results of Operations | 6/30/2021 | 6/30/2020 | 6/30/2021 | 6/30/2020 | |||||||||||||
Interest income | $ | 23,866 | $ | 23,584 | $ | 46,942 | $ | 48,362 | |||||||||
Interest expense | 2,138 | 3,330 | 4,538 | 7,505 | |||||||||||||
Provision for loan losses: | |||||||||||||||||
Community Banking segment | (200 | ) | 1,400 | (200 | ) | 2,400 | |||||||||||
Mortgage Banking segment | 30 | - | 60 | - | |||||||||||||
Consumer Finance segment | (430 | ) | 2,200 | (180 | ) | 3,850 | |||||||||||
Noninterest income: | |||||||||||||||||
Gains on sales of loans | 5,947 | 4,605 | 13,005 | 8,281 | |||||||||||||
Other | 7,153 | 7,223 | 14,451 | 10,295 | |||||||||||||
Noninterest expenses: | |||||||||||||||||
Salaries and employee benefits | 15,714 | 14,354 | 31,327 | 25,171 | |||||||||||||
Other | 9,188 | 9,438 | 18,875 | 18,706 | |||||||||||||
Income tax expense | 2,436 | 947 | 4,723 | 1,924 | |||||||||||||
Net income | 8,090 | 3,743 | 15,255 | 7,382 | |||||||||||||
Fully-taxable equivalent (FTE) amounts1 | |||||||||||||||||
Interest income on loans-FTE | 22,491 | 22,235 | 44,324 | 45,162 | |||||||||||||
Interest income on securities-FTE | 1,468 | 1,466 | 2,809 | 2,881 | |||||||||||||
Total interest income-FTE | 24,007 | 23,753 | 47,227 | 48,693 | |||||||||||||
Net interest income-FTE | 21,869 | 20,423 | 42,689 | 41,188 |
________________________
1 For more information about these non-GAAP financial measures, please see “Use of Certain Non-GAAP Financial Measures” and “Reconciliation of Certain Non-GAAP Financial Measures.”
For The | For The | ||||||||||||||||||
Quarter Ended | Six Months Ended | ||||||||||||||||||
Average Balances | 6/30/2021 | 3/31/2021 | 6/30/2020 | 6/30/2021 | 6/30/2020 | ||||||||||||||
Securities | $ | 339,660 | $ | 288,696 | $ | 236,108 | $ | 314,319 | $ | 220,053 | |||||||||
Loans: | |||||||||||||||||||
Community Banking segment, excluding PPP loans | 959,169 | 952,802 | 933,211 | 957,648 | 926,339 | ||||||||||||||
PPP loans | 79,530 | 93,074 | 67,824 | 84,620 | 33,912 | ||||||||||||||
Mortgage Banking segment | 138,329 | 174,415 | 142,309 | 156,272 | 108,017 | ||||||||||||||
Consumer Finance segment | 325,218 | 314,223 | 301,555 | 319,751 | 305,836 | ||||||||||||||
Interest-bearing deposits in other banks | 165,211 | 125,439 | 100,728 | 145,435 | 145,098 | ||||||||||||||
Total earning assets | 2,007,117 | 1,948,649 | 1,781,735 | 1,518,291 | 1,374,104 | ||||||||||||||
Total assets | 2,158,826 | 2,101,231 | 1,955,461 | 2,130,188 | 1,901,498 | ||||||||||||||
Time, checking and savings deposits | 1,280,217 | 1,262,933 | 1,160,561 | 1,271,624 | 1,152,885 | ||||||||||||||
Borrowings | 78,239 | 76,940 | 136,450 | 77,593 | 150,855 | ||||||||||||||
Total interest-bearing liabilities | 1,358,456 | 1,339,873 | 1,297,011 | 1,349,217 | 1,303,740 | ||||||||||||||
Noninterest-bearing demand deposits | 556,719 | 515,782 | 425,796 | 536,364 | 373,817 | ||||||||||||||
Total equity | 196,292 | 189,105 | 178,110 | 192,718 | 177,017 | ||||||||||||||
Annualized Average Yields and Rates | |||||||||||||||||||
Loans: | |||||||||||||||||||
Community Banking segment | 4.65 | % | 4.44 | % | 4.60 | % | 4.55 | % | 4.95 | % | |||||||||
Mortgage Banking segment | 2.96 | 2.62 | 3.10 | 2.77 | 3.27 | ||||||||||||||
Consumer Finance segment | 11.62 | 11.94 | 12.92 | 11.78 | 13.01 | ||||||||||||||
Deposits | 0.44 | 0.54 | 0.86 | 0.49 | 0.94 | ||||||||||||||
Net interest margin | 4.37 | 4.33 | 4.61 | 4.35 | 4.76 |
Asset Quality | 6/30/2021 | 12/31/2020 | 6/30/2020 | |||||||||
Community Banking | ||||||||||||
Loans, excluding purchased loans and PPP loans | $ | 908,974 | $ | 863,293 | $ | 813,850 | ||||||
Purchased performing loans1 | 67,529 | 87,096 | 114,548 | |||||||||
Purchased credit impaired loans1 | 5,370 | 6,359 | 7,831 | |||||||||
PPP loans2 | 62,029 | 76,527 | 86,924 | |||||||||
Total loans | $ | 1,043,902 | $ | 1,033,275 | $ | 1,023,153 | ||||||
Total nonaccrual loans3 | $ | 2,883 | $ | 2,971 | $ | 1,734 | ||||||
Other real estate owned (OREO)4 | 857 | 907 | 1,103 | |||||||||
Total nonperforming assets | $ | 3,740 | $ | 3,878 | $ | 2,837 | ||||||
Accruing loans past due for 90 days or more | $ | - | $ | 145 | $ | 291 | ||||||
Troubled debt restructurings (TDRs)3 | $ | 2,898 | $ | 3,575 | $ | 3,790 | ||||||
Allowance for loan losses (ALL) | $ | 14,834 | $ | 15,035 | $ | 12,898 | ||||||
Nonperforming assets to loans and OREO | 0.36 | % | 0.37 | % | 0.28 | % | ||||||
ALL to total loans, excluding purchased credit impaired loans5 | 1.43 | % | 1.46 | % | 1.27 | % | ||||||
ALL to total loans, excluding purchased loans and PPP loans | 1.63 | % | 1.74 | % | 1.58 | % | ||||||
ALL to total nonaccrual loans | 514.53 | % | 506.06 | % | 743.83 | % | ||||||
Annualized net charge-offs (recoveries) to average loans | 0.01 | % | 0.01 | % | (0.01 | ) | % | |||||
Mortgage Banking | ||||||||||||
Nonaccrual loans | $ | 30 | $ | 31 | $ | 32 | ||||||
Total Loans | $ | 10,469 | $ | 6,879 | $ | 5,188 | ||||||
ALL | $ | 668 | $ | 608 | $ | 598 | ||||||
Nonperforming loans to total loans | 0.29 | % | 0.45 | % | 0.62 | % | ||||||
ALL to total loans | 6.38 | % | 8.84 | % | 11.53 | % | ||||||
Consumer Finance | ||||||||||||
Nonaccrual loans | $ | 138 | $ | 402 | $ | 369 | ||||||
Repossessed automobiles available for sale | $ | 151 | $ | 291 | $ | 265 | ||||||
Accruing loans past due for 90 days or more | $ | - | $ | - | $ | - | ||||||
Total loans | $ | 332,873 | $ | 312,252 | $ | 300,649 | ||||||
ALL | $ | 23,449 | $ | 23,513 | $ | 22,598 | ||||||
Nonaccrual loans to total loans | 0.04 | % | 0.13 | % | 0.12 | % | ||||||
ALL to total loans | 7.04 | % | 7.53 | % | 7.52 | % | ||||||
Annualized net (recoveries) charge-offs to average total loans | (0.07 | ) | % | 1.54 | % | 1.99 | % |
________________________
1 Acquired loans are tracked in two separate categories: “purchased performing” and “purchased credit impaired.” The remaining discount for purchased performing loans was
2 The principal amount of outstanding PPP loans was
3 Total nonaccrual loans include nonaccrual TDRs of
4 Includes
5 The ratio of ALL to total loans, excluding purchased credit impaired loans, includes purchased performing loans and loans originated under the PPP for which no allowance for loan losses is required.
For The | For The | ||||||||||||||||||
Quarter Ended | Six Months Ended | ||||||||||||||||||
Other Performance Data | 6/30/2021 | 6/30/2020 | 6/30/2021 | 6/30/2020 | |||||||||||||||
Net Income (Loss): | |||||||||||||||||||
Community Banking | $ | 3,925 | $ | 294 | $ | 6,718 | $ | 951 | |||||||||||
Mortgage Banking | 1,968 | 2,321 | 4,513 | 3,864 | |||||||||||||||
Consumer Finance | 2,875 | 1,638 | 5,402 | 3,568 | |||||||||||||||
Other | (678 | ) | (510 | ) | (1,378 | ) | (1,001 | ) | |||||||||||
Total | $ | 8,090 | $ | 3,743 | $ | 15,255 | $ | 7,382 | |||||||||||
Net income attributable to C&F Financial Corporation | $ | 8,008 | $ | 3,746 | $ | 15,069 | $ | 7,324 | |||||||||||
Earnings per share - basic and diluted | $ | 2.19 | $ | 1.03 | $ | 4.11 | $ | 2.01 | |||||||||||
Weighted average shares outstanding - basic and diluted | 3,653,568 | 3,647,707 | 3,664,752 | 3,646,161 | |||||||||||||||
Annualized return on average assets | 1.50 | % | 0.77 | % | 1.43 | % | 0.78 | % | |||||||||||
Annualized return on average equity | 16.49 | % | 8.41 | % | 15.83 | % | 8.34 | % | |||||||||||
Dividends declared per share | $ | 0.40 | $ | 0.38 | $ | 0.78 | $ | 0.76 | |||||||||||
Mortgage loan originations - Mortgage Banking | $ | 381,308 | $ | 448,281 | $ | 803,811 | $ | 708,631 | |||||||||||
Mortgage loans sold - Mortgage Banking | 437,554 | 395,494 | 895,737 | 621,532 |
Market Ratios | 6/30/2021 | 12/31/2020 | |||||
Market value per share | $ | 51.00 | $ | 37.11 | |||
Book value per share | $ | 56.02 | $ | 52.80 | |||
Price to book value ratio | 0.91 | 0.70 | |||||
Tangible book value per share1 | $ | 48.41 | $ | 45.32 | |||
Price to tangible book value ratio1 | 1.05 | 0.82 | |||||
Price to earnings ratio (ttm) | 6.25 | 6.09 |
________________________
1 For more information about these non-GAAP financial measures, please see “Use of Certain Non-GAAP Financial Measures” and “Reconciliation of Certain Non-GAAP Financial Measures.”
Minimum Capital | ||||||||||
Capital Ratios | 6/30/2021 | 12/31/2020 | Requirements3 | |||||||
C&F Financial Corporation1 | ||||||||||
Total risk-based capital ratio | 15.8 | % | 15.2 | % | 8.0 | % | ||||
Tier 1 risk-based capital ratio | 13.0 | % | 12.5 | % | 6.0 | % | ||||
Common equity tier 1 capital ratio | 11.4 | % | 10.9 | % | 4.5 | % | ||||
Tier 1 leverage ratio | 9.6 | % | 9.6 | % | 4.0 | % | ||||
C&F Bank2 | ||||||||||
Total risk-based capital ratio | 14.6 | % | 13.8 | % | 8.0 | % | ||||
Tier 1 risk-based capital ratio | 13.3 | % | 12.5 | % | 6.0 | % | ||||
Common equity tier 1 capital ratio | 13.3 | % | 12.5 | % | 4.5 | % | ||||
Tier 1 leverage ratio | 9.8 | % | 9.6 | % | 4.0 | % |
________________________
1 The Corporation, a small bank holding company under applicable regulations and guidance, is not subject to the minimum regulatory capital regulations for bank holding companies. The regulatory requirements that apply to bank holding companies that are subject to regulatory capital requirements are presented above, along with the Corporation’s capital ratios as determined under those regulations.
2 All ratios at June 30, 2021 are estimates and subject to change pending regulatory filings. All ratios at December 31, 2020 are presented as filed.
3 The ratios presented for minimum capital requirements are those to be considered adequately capitalized.
For The | For The | ||||||||||||||||
Quarter Ended | Six Months Ended | ||||||||||||||||
Reconciliation of Certain Non-GAAP Financial Measures | 6/30/2021 | 6/30/2020 | 6/30/2021 | 6/30/2020 | |||||||||||||
Adjusted Net Income and Earnings Per Share | |||||||||||||||||
Net income, as reported | $ | 8,090 | $ | 3,743 | $ | 15,255 | $ | 7,382 | |||||||||
Merger related expenses1 | - | 347 | - | 1,132 | |||||||||||||
Branch consolidation2 | - | 222 | - | 222 | |||||||||||||
Change in tax law | - | (303 | ) | - | (303 | ) | |||||||||||
Adjusted net income | $ | 8,090 | $ | 4,009 | $ | 15,255 | $ | 8,433 | |||||||||
Weighted average shares - basic and diluted | 3,653,568 | 3,647,707 | 3,664,752 | 3,646,161 | |||||||||||||
Earnings per share - basic and diluted, as reported | $ | 2.19 | $ | 1.03 | $ | 4.11 | $ | 2.01 | |||||||||
Merger related expenses | - | 0.10 | - | 0.31 | |||||||||||||
Branch consolidation | - | 0.06 | - | 0.06 | |||||||||||||
Change in tax law | - | (0.08 | ) | - | (0.08 | ) | |||||||||||
Adjusted earnings per share - basic and diluted | $ | 2.19 | $ | 1.11 | $ | 4.11 | $ | 2.30 | |||||||||
Adjusted Return on Average Equity (ROE) | |||||||||||||||||
Average total equity, as reported | $ | 196,292 | $ | 178,110 | $ | 192,718 | $ | 177,017 | |||||||||
Annualized ROE, as reported | 16.49 | % | 8.41 | % | 15.83 | % | 8.34 | % | |||||||||
Adjusted annualized ROE | 16.49 | % | 9.00 | % | 15.83 | % | 9.53 | % | |||||||||
Adjusted Return on Average Assets (ROA) | |||||||||||||||||
Average total assets, as reported | $ | 2,158,826 | $ | 1,955,461 | $ | 2,130,188 | $ | 1,901,498 | |||||||||
Annualized ROA, as reported | 1.50 | % | 0.77 | % | 1.43 | % | 0.78 | % | |||||||||
Adjusted annualized ROA | 1.50 | % | 0.82 | % | 1.43 | % | 0.89 | % | |||||||||
Adjusted Net Income, Community Banking Segment | |||||||||||||||||
Net income, community banking segment, as reported | $ | 3,925 | $ | 294 | $ | 6,718 | $ | 951 | |||||||||
Merger related expenses1 | - | 347 | - | 1,032 | |||||||||||||
Branch consolidation2 | - | 222 | - | 222 | |||||||||||||
Change in tax law | - | (303 | ) | - | (303 | ) | |||||||||||
Adjusted net income, community banking segment | $ | 3,925 | $ | 560 | $ | 6,718 | $ | 1,902 | |||||||||
Fully Taxable Equivalent Net Interest Income3 | |||||||||||||||||
Interest income on loans | $ | 22,466 | $ | 22,204 | $ | 44,279 | $ | 45,101 | |||||||||
FTE adjustment | 25 | 31 | 45 | 61 | |||||||||||||
FTE interest income on loans | $ | 22,491 | $ | 22,235 | $ | 44,324 | $ | 45,162 | |||||||||
Interest income on securities | $ | 1,352 | $ | 1,328 | $ | 2,569 | $ | 2,611 | |||||||||
FTE adjustment | 116 | 138 | 240 | 270 | |||||||||||||
FTE interest income on securities | $ | 1,468 | $ | 1,466 | $ | 2,809 | $ | 2,881 | |||||||||
Total interest income | $ | 23,866 | $ | 23,584 | $ | 46,942 | $ | 48,362 | |||||||||
FTE adjustment | 141 | 169 | 285 | 331 | |||||||||||||
FTE interest income | $ | 24,007 | $ | 23,753 | $ | 47,227 | $ | 48,693 | |||||||||
Net interest income | $ | 21,728 | $ | 20,254 | $ | 42,404 | $ | 40,857 | |||||||||
FTE adjustment | 141 | 169 | 285 | 331 | |||||||||||||
FTE net interest income | $ | 21,869 | $ | 20,423 | $ | 42,689 | $ | 41,188 |
________________________
1 Merger related expenses are net of related income tax benefits of
2 Branch consolidation charges are net of related income taxes of
3 Assuming a tax rate of
6/30/2021 | 12/31/2020 | ||||||
Tangible Book Value Per Share | |||||||
Equity attributable to C&F Financial Corporation | $ | 201,201 | $ | 193,805 | |||
Less goodwill | 25,191 | 25,191 | |||||
Less other intangible assets | 2,134 | 2,291 | |||||
Tangible equity attributable to C&F Financial Corporation | $ | 173,876 | $ | 166,323 | |||
Shares outstanding | 3,591,902 | 3,670,301 | |||||
Book value per share | $ | 56.02 | $ | 52.80 | |||
Tangible book value per share | $ | 48.41 | $ | 45.32 |
Contact: | Jason Long, CFO and Secretary |
(804) 843-2360 |
FAQ
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