C&F Financial Corporation Announces Net Income for Third Quarter and First Nine Months
C&F Financial (CFFI) reported consolidated net income of $5.4 million for Q3 2024, down from $5.8 million in Q3 2023. For the first nine months of 2024, net income was $13.9 million compared to $18.7 million in 2023. Key highlights include community banking segment loan growth of 16.6% annualized, deposit increase of 4.5% annualized, and mortgage banking segment loan originations of $157.0 million in Q3. The consumer finance segment experienced higher net charge-offs at 2.36% of average total loans. The company maintained strong liquidity with $287.4 million in liquid assets and $583.8 million in borrowing availability.
C&F Financial (CFFI) ha riportato un utile netto consolidato di 5,4 milioni di dollari per il terzo trimestre del 2024, in calo rispetto ai 5,8 milioni di dollari del terzo trimestre del 2023. Nei primi nove mesi del 2024, l'utile netto è stato di 13,9 milioni di dollari rispetto ai 18,7 milioni del 2023. Punti salienti includono una crescita dei prestiti del segmento della banca comunitaria del 16,6% su base annua, un aumento dei depositi del 4,5% su base annua e origini di prestiti nel segmento della banca ipotecaria pari a 157,0 milioni di dollari nel terzo trimestre. Il segmento della finanza al consumo ha registrato un aumento degli accantonamenti netti al 2,36% dei prestiti totali medi. L'azienda ha mantenuto una forte liquidità con 287,4 milioni di dollari in attivi liquidi e 583,8 milioni di dollari di disponibilità per prestiti.
C&F Financial (CFFI) reportó un ingreso neto consolidado de 5.4 millones de dólares para el tercer trimestre de 2024, disminuyendo desde los 5.8 millones de dólares en el tercer trimestre de 2023. En los primeros nueve meses de 2024, el ingreso neto fue de 13.9 millones de dólares en comparación con 18.7 millones en 2023. Puntos destacados incluyen un crecimiento de préstamos del segmento bancario comunitario del 16.6% anualizado, un aumento en depósitos del 4.5% anualizado y originaciones de préstamos del segmento de banca hipotecaria de 157.0 millones de dólares en el tercer trimestre. El segmento de finanzas al consumidor experimentó mayores cancelaciones netas con un 2.36% de los préstamos totales promedios. La compañía mantuvo una fuerte liquidez con 287.4 millones de dólares en activos líquidos y 583.8 millones de dólares disponibles para préstamos.
C&F Financial (CFFI)는 2024년 3분기 동안 540만 달러의 연결 순손실을 보고했으며, 이는 2023년 3분기의 580만 달러에서 감소한 수치입니다. 2024년 첫 아홉 달 동안 순손실은 1390만 달러로 2023년의 1870만 달러에 비해 줄어들었습니다. 주요 사항으로는 지역 은행 부문의 연간 16.6%의 대출 증가, 연간 4.5%의 예금 증가, 3분기 동안 주택담보대출 부문의 대출 발행액이 1억 5700만 달러에 이릅니다. 소비자 금융 부문은 평균 총 대출의 2.36%에 해당하는 더 높은 순손실을 경험했습니다. 회사는 2억 8740만 달러의 유동 자산과 5억 8380만 달러의 대출 가능성으로 강력한 유동성을 유지했습니다.
C&F Financial (CFFI) a rapporté un bénéfice net consolidé de 5,4 millions de dollars pour le troisième trimestre 2024, en légère baisse par rapport à 5,8 millions de dollars au troisième trimestre 2023. Pour les neuf premiers mois de 2024, le bénéfice net s'élevait à 13,9 millions de dollars contre 18,7 millions de dollars en 2023. Points clés incluent une croissance des prêts dans le segment bancaire communautaire de 16,6% en annualisé, une augmentation des dépôts de 4,5% en annualisé, et des origines de prêts dans le segment de la banque hypothécaire de 157,0 millions de dollars au troisième trimestre. Le segment de la finance à la consommation a connu des annulations nettes plus élevées à 2,36% des prêts totaux moyens. L'entreprise a maintenu une forte liquidité avec 287,4 millions de dollars d'actifs liquides et 583,8 millions de dollars de disponibilité pour les emprunts.
C&F Financial (CFFI) berichtete für das dritte Quartal 2024 ein konsolidiertes Nettoergebnis von 5,4 Millionen US-Dollar, was einem Rückgang von 5,8 Millionen US-Dollar im dritten Quartal 2023 entspricht. In den ersten neun Monaten 2024 betrug der Gewinn 13,9 Millionen US-Dollar im Vergleich zu 18,7 Millionen US-Dollar im Jahr 2023. Wichtige Highlights umfassen ein jährliches Darlehenswachstum von 16,6% im Segment der Gemeindebank, einen Anstieg der Einlagen um 4,5% auf Jahresbasis und Darlehensvergaben im Segment der Hypothekenbank in Höhe von 157,0 Millionen US-Dollar im dritten Quartal. Das Segment der Verbraucherfinanzierung erlebte höhere Nettoabschreibungen in Höhe von 2,36% der durchschnittlichen Gesamtdarlehen. Das Unternehmen hielt eine starke Liquidität mit 287,4 Millionen US-Dollar an liquiden Mitteln und 583,8 Millionen US-Dollar an verfügbaren Krediten.
- Community banking segment loans grew 16.6% annualized
- Deposits increased 4.5% annualized
- Mortgage banking loan originations increased 21.1% YoY to $157.0 million
- Wealth management services income increased as assets under management grew 19.0%
- Net income decreased from $5.8M to $5.4M in Q3 2024 YoY
- Nine-month net income declined from $18.7M to $13.9M YoY
- Consumer finance segment net charge-offs increased to 2.36% from 1.75%
- Net interest margin declined to 4.13% from 4.29% YoY
Insights
The Q3 2024 results show mixed performance for C&F Financial. Net income declined to
The net interest margin held relatively stable at
The mortgage banking segment showed improvement, turning a
TOANO, Va., Oct. 29, 2024 (GLOBE NEWSWIRE) -- C&F Financial Corporation (the Corporation) (NASDAQ: CFFI), the holding company for C&F Bank, today reported consolidated net income of
| For The Quarter Ended | For the Nine Months Ended | |||||||||||||||
| Consolidated Financial Highlights (unaudited) | 9/30/2024 | 9/30/2023 | 9/30/2024 | 9/30/2023 | ||||||||||||
| Consolidated net income (000's) | $ | 5,420 | $ | 5,777 | $ | 13,889 | $ | 18,658 | ||||||||
| Earnings per share - basic and diluted | $ | 1.65 | $ | 1.71 | $ | 4.15 | $ | 5.41 | ||||||||
| Annualized return on average equity | 9.74 | % | 11.28 | % | 8.47 | % | 12.22 | % | ||||||||
| Annualized return on average tangible common equity1 | 11.16 | % | 13.19 | % | 9.74 | % | 14.18 | % | ||||||||
| Annualized return on average assets | 0.86 | % | 0.96 | % | 0.75 | % | 1.04 | % | ||||||||
________________________
1 For more information about these non-GAAP 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.
“We are pleased with our results from the third quarter,” commented Tom Cherry, President and Chief Executive Officer of C&F Financial Corporation. “Both loans and deposits demonstrated solid growth, and the community banking segment showed increased earnings when compared to the previous quarter. Despite market and industry challenges, the consumer finance and mortgage banking segments remained profitable. Our net interest margin was relatively flat when compared to the second quarter, which was expected, and asset quality, liquidity and capital all remain strong.”
Key highlights for the third quarter and first nine months of 2024 are as follows.
- Community banking segment loans grew
$158.5 million , or 16.6 percent annualized, and$185.6 million , or 14.9 percent, compared to December 31, 2023 and September 30, 2023, respectively; - Consumer finance segment loans grew
$8.8 million , or 2.5 percent annualized, and$6.1 million , or 1.3 percent, compared to December 31, 2023 and September 30, 2023, respectively; - Deposits increased
$69.8 million , or 4.5 percent annualized, and$107.5 million , or 5.3 percent, compared to December 31, 2023 and September 30, 2023, respectively; - Consolidated annualized net interest margin was 4.13 percent for the third quarter of 2024 compared to 4.29 percent for the third quarter of 2023 and 4.12 percent in the second quarter of 2024;
- The community banking segment recorded provision for credit losses of
$700,000 and$1.7 million for the third quarter and first nine months of 2024, respectively, compared to$500,000 and$1.6 million for the same periods in 2023; - The consumer finance segment recorded provision for credit losses of
$3.0 million and$8.1 million for the third quarter and first nine months of 2024, respectively, compared to$1.6 million and$4.3 million for the same periods in 2023; - The consumer finance segment experienced net charge-offs at an annualized rate of 2.36 percent of average total loans for the first nine months of 2024, compared to 1.75 percent for the first nine months of 2023;
- Mortgage banking segment loan originations were
$157.0 million for the third quarter of 2024, an increase of$27.3 million , or 21.1 percent, and an increase of$11.0 million , or 7.5 percent, compared to the third quarter of 2023 and the second quarter of 2024, respectively; - During the third quarter of 2024, the community banking segment opened a new retail banking branch in Colonial Heights, Virginia and announced the closure of its Hampton, Virginia branch in the fourth quarter of 2024.
Community Banking Segment. The community banking segment reported net income of
- higher interest expense due primarily to higher rates on deposits and higher balances of interest-bearing deposits, partially offset by lower balances of borrowings;
- higher salaries and employee benefits expense for the first nine months of 2024, as compared to the same period in 2023, which have generally increased in line with market conditions. Salaries and employee benefits expense decreased to
$8.9 million for the three months ended September 30, 2024, compared to$9.1 million and$9.4 million for the three months ended June 30, 2024 and March 31, 2024, respectively, due primarily to a reduction in headcount through attrition; - higher occupancy expense related to branch network improvements, including the relocation of a branch and the opening of a new branch; and
- higher data processing and consulting costs related to investments in operational technology to improve resilience, efficiency and customer experience;
partially offset by:
- higher interest income resulting from the effects of higher interest rates on asset yields and higher average balances of loans, offset in part by lower average balances of securities; and
- higher wealth management services income as assets under management increased 19.0 percent for the first nine months of 2024, as compared to the same period in 2023.
Average loans increased
Average loan yields and average costs of interest-bearing deposits were higher for the third quarter and first nine months of 2024, compared to the same periods of 2023, due primarily to the effects of the higher interest rate environment.
The community banking segment’s nonaccrual loans were
Mortgage Banking Segment. The mortgage banking segment reported net income of
- higher gains on sales of loans due to higher volume of mortgage loan originations; and
- higher mortgage banking fee income;
partially offset by:
- higher variable expenses tied to mortgage loan origination volume such as commissions and bonuses, reported in salaries and employee benefits, and data processing expenses.
The mortgage banking segment reported net income of
- lower variable expenses tied to mortgage loan origination volume such as commissions and bonuses, reported in salaries and employee benefits, as well as mortgage banking loan processing expenses and data processing expenses;
- lower occupancy expense due to an effort to reduce overhead costs;
- higher mortgage banking fee income; and
- relatively unchanged gains on sales of loans and mortgage loan production volume;
partially offset by:
- lower mortgage lender services income due lower mortgage loan production volume across the industry.
The sustained elevated level of mortgage interest rates, combined with higher home prices and lower levels of inventory, has led to a level of mortgage loan originations in 2024 and 2023 for the industry that is lower than recent historical averages. Mortgage loan originations for the mortgage banking segment were
During the third quarter and first nine months of 2024, the mortgage banking segment recorded a reversal of provision for indemnification losses of
Consumer Finance Segment. The consumer finance segment reported net income of
- higher provision for credit losses due primarily to increased net charge-offs and loan growth; and
- higher interest expense on variable rate borrowings from the community banking segment as a result of higher interest rates and higher balances of borrowings;
partially offset by:
- higher interest income resulting from the effects of higher interest rates on loan yields and higher average balances of loans;
- lower salaries and employee benefits expense due to an effort to reduce overhead costs; and
- lower loan recovery expense related to growth in loans with stronger credit quality and efficiency initiatives within the collections department.
Average loans increased
The consumer finance segment, at times, offers payment deferrals as a portfolio management technique to achieve higher ultimate cash collections on select loan accounts. A significant reliance on deferrals as a means of managing collections may result in a lengthening of the loss confirmation period, which would increase expectations of credit losses inherent in the portfolio. The average amounts deferred on a monthly basis during the third quarter and first nine months of 2024 were 1.91 percent and 1.70 percent of average automobile loans outstanding compared to 2.20 percent and 1.83 percent during the same periods during 2023. The allowance for credit losses was
Liquidity. The objective of the Corporation’s liquidity management is to ensure the continuous availability of funds to satisfy the credit needs of our customers and the demands of our depositors, creditors and investors. Uninsured deposits represent an estimate of amounts above the Federal Deposit Insurance Corporation (FDIC) insurance coverage limit of
In addition to deposits, the Corporation utilizes short-term and long-term borrowings as sources of funds. Short-term borrowings from the Federal Reserve Bank and the Federal Home loan Bank of Atlanta (FHLB) may be used to fund the Corporation’s day-to-day operations. Short-term borrowings also include securities sold under agreements to repurchase. Total borrowings increased to
Additional sources of liquidity available to the Corporation include cash flows from operations, loan payments and payoffs, deposit growth, maturities, calls and sales of securities and the issuance of brokered certificates of deposit.
Capital and Dividends. The Corporation declared a quarterly cash dividend for the third quarter of 2024 of
Total consolidated equity increased
As of September 30, 2024, the most recent notification from the FDIC categorized the C&F Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized under regulations applicable at September 30, 2024, C&F Bank was required to maintain minimum total risk-based, Tier 1 risk-based, CET1 risk-based and Tier 1 leverage ratios. In addition to the regulatory risk-based capital requirements, C&F Bank must maintain a capital conservation buffer of additional capital of 2.5 percent of risk-weighted assets as required by the Basel III capital rules. The Corporation and C&F Bank exceeded these ratios at September 30, 2024. For additional information, see “Capital Ratios” below. The above mentioned ratios are not impacted by unrealized losses on securities available for sale. In the event that all of these unrealized losses became realized into earnings, the Corporation and C&F Bank would both continue to exceed minimum capital requirements, including the capital conservation buffer, and be considered well capitalized.
In December 2023, the Board of Directors authorized a program, effective January 1, 2024, to repurchase up to
About C&F Financial Corporation. The 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 32 banking offices and four commercial loan offices located throughout eastern and central 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, North Carolina, and West Virginia. C&F Finance Company provides automobile, marine and recreational vehicle 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 from its headquarters in Henrico, 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 return on average equity, adjusted return on average assets, return on average tangible common equity (ROTCE), adjusted ROTCE, tangible book value per share, price to tangible book value ratio, 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 balances of intangible assets, including goodwill, that vary significantly between institutions, and 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 of 1934, 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 quote and statements regarding future interest rates and conditions in the Corporation’s industries and markets, 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,” “might,” “will,” “intend,” “target,” “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, expected trends in yields on loans, expected future recovery of investments in debt securities, future dividend payments, deposit trends, charge-offs and delinquencies, changes in cost of funds and net interest margin and items affecting net interest margin, strategic business initiatives and the anticipated effects thereof, changes in interest rates and the effects thereof on net interest income, mortgage loan originations, expectations regarding C&F Bank’s regulatory risk-based capital requirement levels, technology initiatives, our diversified business strategy, asset quality, credit quality, adequacy of allowances for credit losses and the level of future charge-offs, market interest rates and housing inventory and resulting effects in mortgage loan origination volume, sources of liquidity, adequacy of the reserve for indemnification losses related to loans sold in the secondary market, the effect of future market and industry trends, the effects of future interest rate fluctuations, cybersecurity risks, and inflation. 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:
- interest rates, such as volatility in short-term interest rates or yields on U.S. Treasury bonds, increases in interest rates following actions by the Federal Reserve and increases or volatility in mortgage interest rates
- general business conditions, as well as conditions within the financial markets
- general economic conditions, including unemployment levels, inflation rates, supply chain disruptions and slowdowns in economic growth
- general market conditions, including disruptions due to pandemics or significant health hazards, severe weather conditions, natural disasters, terrorist activities, financial crises, political crises, war and other military conflicts (including the ongoing military conflicts between Russia and Ukraine and in the Middle East) or other major events, or the prospect of these events
- average loan yields and average costs of interest-bearing deposits
- financial services industry conditions, including bank failures or concerns involving liquidity
- labor market conditions, including attracting, hiring, training, motivating and retaining qualified employees
- the legislative/regulatory climate, regulatory initiatives with respect to financial institutions, products and services, the Consumer Financial Protection Bureau (the CFPB) and the regulatory and enforcement activities of the CFPB
- monetary and fiscal policies of the U.S. Government, including policies of the FDIC, U.S. Department of the Treasury and the Board of Governors of the Federal Reserve System, and the effect of these policies on interest rates and business in our markets
- demand for financial services in the Corporation’s market area
- the value of securities held in the Corporation’s investment portfolios
- the quality or composition of the loan portfolios and the value of the collateral securing those loans
- the inventory level, demand and fluctuations in the pricing of used automobiles, including sales prices of repossessed vehicles
- the level of automobile loan delinquencies or defaults and our ability to repossess automobiles securing delinquent automobile finance installment contracts
- the level of net charge-offs on loans and the adequacy of our allowance for credit losses
- the level of indemnification losses related to mortgage loans sold
- demand for loan products
- deposit flows
- the strength of the Corporation’s counterparties
- the availability of lines of credit from the FHLB and other counterparties
- the soundness of other financial institutions and any indirect exposure related to the closing of other financial institutions and their impact on the broader market through other customers, suppliers and partners, or that the conditions which resulted in the liquidity concerns experienced by closed financial institutions may also adversely impact, directly or indirectly, other financial institutions and market participants with which the Corporation has commercial or deposit relationships
- competition from both banks and non-banks, including competition in the non-prime automobile finance markets and marine and recreational vehicle finance markets
- services provided by, or the level of the Corporation’s reliance upon third parties for key services
- the commercial and residential real estate markets, including changes in property values
- the demand for residential mortgages and conditions in the secondary residential mortgage loan markets
- the Corporation’s technology initiatives and other strategic initiatives
- the Corporation’s branch expansions and consolidations plans
- cyber threats, attacks or events
- C&F Bank’s product offerings
- 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, 2023 and other reports filed with the SEC. The Corporation undertakes no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.
| C&F Financial Corporation Selected Financial Information (dollars in thousands, except for per share data) (unaudited) | ||||||||||
| Financial Condition | 9/30/2024 | 12/31/2023 | 9/30/2023 | |||||||
| Interest-bearing deposits in other banks | $ | 32,507 | $ | 58,777 | $ | 53,407 | ||||
| Investment securities - available for sale, at fair value | 409,045 | 462,444 | 460,653 | |||||||
| Loans held for sale, at fair value | 44,677 | 14,176 | 25,469 | |||||||
| Loans, net: | ||||||||||
| Community Banking segment | 1,414,576 | 1,257,557 | 1,230,694 | |||||||
| Consumer Finance segment | 454,062 | 444,931 | 446,787 | |||||||
| Total assets | 2,550,904 | 2,438,498 | 2,421,705 | |||||||
| Deposits | 2,135,891 | 2,066,130 | 2,028,429 | |||||||
| Repurchase agreements | 28,643 | 30,705 | 28,660 | |||||||
| Other borrowings | 113,683 | 78,834 | 118,388 | |||||||
| Total equity | 227,958 | 217,516 | 200,380 | |||||||
| For The | For The | |||||||||||||||
| Quarter Ended | Nine Months Ended | |||||||||||||||
| Results of Operations | 9/30/2024 | 9/30/2023 | 9/30/2024 | 9/30/2023 | ||||||||||||
| Interest income | $ | 36,131 | $ | 31,686 | $ | 103,151 | $ | 91,729 | ||||||||
| Interest expense | 11,442 | 7,224 | 31,476 | 17,964 | ||||||||||||
| Provision for credit losses: | ||||||||||||||||
| Community Banking segment | 700 | 500 | 1,650 | 1,550 | ||||||||||||
| Consumer Finance segment | 3,000 | 1,550 | 8,100 | 4,250 | ||||||||||||
| Noninterest income: | ||||||||||||||||
| Gains on sales of loans | 1,825 | 1,220 | 4,814 | 4,930 | ||||||||||||
| Other | 6,947 | 4,994 | 18,774 | 16,882 | ||||||||||||
| Noninterest expenses: | ||||||||||||||||
| Salaries and employee benefits | 13,921 | 12,921 | 41,625 | 40,841 | ||||||||||||
| Other | 9,170 | 8,605 | 26,989 | 25,969 | ||||||||||||
| Income tax expense | 1,250 | 1,323 | 3,010 | 4,309 | ||||||||||||
| Net income | 5,420 | 5,777 | 13,889 | 18,658 | ||||||||||||
| Fully-taxable equivalent (FTE) amounts1 | ||||||||||||||||
| Interest income on loans-FTE | 33,070 | 28,423 | 94,166 | 81,999 | ||||||||||||
| Interest income on securities-FTE | 2,958 | 3,134 | 9,033 | 9,589 | ||||||||||||
| Total interest income-FTE | 36,417 | 31,936 | 104,010 | 92,424 | ||||||||||||
| Net interest income-FTE | 24,975 | 24,712 | 72,534 | 74,460 | ||||||||||||
________________________
1For 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 Quarter Ended | |||||||||||||||||||
| 9/30/2024 | 9/30/2023 | ||||||||||||||||||
| Average | Income/ | Yield/ | Average | Income/ | Yield/ | ||||||||||||||
| Yield Analysis | Balance | Expense | Rate | Balance | Expense | Rate | |||||||||||||
| Assets | |||||||||||||||||||
| Securities: | |||||||||||||||||||
| Taxable | $ | 318,834 | $ | 1,828 | 2.29 | % | $ | 414,036 | $ | 2,207 | 2.13 | % | |||||||
| Tax-exempt | 119,253 | 1,130 | 3.79 | 110,182 | 927 | 3.37 | |||||||||||||
| Total securities | 438,087 | 2,958 | 2.70 | 524,218 | 3,134 | 2.39 | |||||||||||||
| Loans: | |||||||||||||||||||
| Community banking segment | 1,411,337 | 19,797 | 5.58 | 1,224,791 | 15,887 | 5.15 | |||||||||||||
| Mortgage banking segment | 40,232 | 597 | 5.90 | 30,210 | 517 | 6.79 | |||||||||||||
| Consumer finance segment | 481,124 | 12,676 | 10.48 | 472,811 | 12,019 | 10.09 | |||||||||||||
| Total loans | 1,932,693 | 33,070 | 6.81 | 1,727,812 | 28,423 | 6.53 | |||||||||||||
| Interest-bearing deposits in other banks | 38,756 | 389 | 3.99 | 38,507 | 379 | 3.90 | |||||||||||||
| Total earning assets | 2,409,536 | 36,417 | 6.02 | 2,290,537 | 31,936 | 5.54 | |||||||||||||
| Allowance for credit losses | (40,879 | ) | (41,014 | ) | |||||||||||||||
| Total non-earning assets | 158,063 | 151,070 | |||||||||||||||||
| Total assets | $ | 2,526,720 | $ | 2,400,593 | |||||||||||||||
| Liabilities and Equity | |||||||||||||||||||
| Interest-bearing deposits: | |||||||||||||||||||
| Interest-bearing demand deposits | $ | 323,019 | 540 | 0.67 | $ | 341,707 | 505 | 0.59 | |||||||||||
| Money market deposit accounts | 293,789 | 1,104 | 1.49 | 304,309 | 782 | 1.02 | |||||||||||||
| Savings accounts | 178,417 | 23 | 0.05 | 204,042 | 29 | 0.06 | |||||||||||||
| Certificates of deposit | 801,669 | 8,524 | 4.23 | 571,499 | 4,316 | 3.00 | |||||||||||||
| Total interest-bearing deposits | 1,596,894 | 10,191 | 2.54 | 1,421,557 | 5,632 | 1.57 | |||||||||||||
| Borrowings: | |||||||||||||||||||
| Repurchase agreements | 27,207 | 117 | 1.72 | 29,440 | 95 | 1.29 | |||||||||||||
| Other borrowings | 93,961 | 1,134 | 4.83 | 122,250 | 1,497 | 4.90 | |||||||||||||
| Total borrowings | 121,168 | 1,251 | 4.13 | 151,690 | 1,592 | 4.20 | |||||||||||||
| Total interest-bearing liabilities | 1,718,062 | 11,442 | 2.65 | 1,573,247 | 7,224 | 1.83 | |||||||||||||
| Noninterest-bearing demand deposits | 537,796 | 577,382 | |||||||||||||||||
| Other liabilities | 48,330 | 45,124 | |||||||||||||||||
| Total liabilities | 2,304,188 | 2,195,753 | |||||||||||||||||
| Equity | 222,532 | 204,840 | |||||||||||||||||
| Total liabilities and equity | $ | 2,526,720 | $ | 2,400,593 | |||||||||||||||
| Net interest income | $ | 24,975 | $ | 24,712 | |||||||||||||||
| Interest rate spread | 3.37 | % | 3.71 | % | |||||||||||||||
| Interest expense to average earning assets | 1.89 | % | 1.25 | % | |||||||||||||||
| Net interest margin | 4.13 | % | 4.29 | % | |||||||||||||||
| For the Nine Months Ended | |||||||||||||||||||
| 9/30/2024 | 9/30/2023 | ||||||||||||||||||
| Average | Income/ | Yield/ | Average | Income/ | Yield/ | ||||||||||||||
| Yield Analysis | Balance | Expense | Rate | Balance | Expense | Rate | |||||||||||||
| Assets | |||||||||||||||||||
| Securities: | |||||||||||||||||||
| Taxable | $ | 340,297 | $ | 5,665 | 2.22 | % | $ | 441,204 | $ | 7,017 | 2.12 | % | |||||||
| Tax-exempt | 119,931 | 3,368 | 3.74 | 104,549 | 2,572 | 3.28 | |||||||||||||
| Total securities | 460,228 | 9,033 | 2.62 | 545,753 | 9,589 | 2.34 | |||||||||||||
| Loans: | |||||||||||||||||||
| Community banking segment | 1,357,962 | 55,671 | 5.48 | 1,199,560 | 45,375 | 5.06 | |||||||||||||
| Mortgage banking segment | 30,759 | 1,411 | 6.13 | 26,713 | 1,312 | 6.57 | |||||||||||||
| Consumer finance segment | 477,768 | 37,084 | 10.37 | 474,738 | 35,312 | 9.94 | |||||||||||||
| Total loans | 1,866,489 | 94,166 | 6.74 | 1,701,011 | 81,999 | 6.45 | |||||||||||||
| Interest-bearing deposits in other banks | 30,197 | 811 | 3.59 | 33,072 | 836 | 3.38 | |||||||||||||
| Total earning assets | 2,356,914 | 104,010 | 5.89 | 2,279,836 | 92,424 | 5.42 | |||||||||||||
| Allowance for loan losses | (40,670 | ) | (41,192 | ) | |||||||||||||||
| Total non-earning assets | 155,935 | 150,826 | |||||||||||||||||
| Total assets | $ | 2,472,179 | $ | 2,389,470 | |||||||||||||||
| Liabilities and Equity | |||||||||||||||||||
| Interest-bearing deposits: | |||||||||||||||||||
| Interest-bearing demand deposits | $ | 326,540 | 1,569 | 0.64 | $ | 359,157 | 1,578 | 0.59 | |||||||||||
| Money market deposit accounts | 295,257 | 3,177 | 1.44 | 323,630 | 2,121 | 0.88 | |||||||||||||
| Savings accounts | 181,880 | 85 | 0.06 | 213,940 | 91 | 0.06 | |||||||||||||
| Certificates of deposit | 753,114 | 23,140 | 4.10 | 509,424 | 9,447 | 2.48 | |||||||||||||
| Total interest-bearing deposits | 1,556,791 | 27,971 | 2.40 | 1,406,151 | 13,237 | 1.26 | |||||||||||||
| Borrowings: | |||||||||||||||||||
| Repurchase agreements | 26,774 | 325 | 1.62 | 32,048 | 273 | 1.14 | |||||||||||||
| Other borrowings | 91,024 | 3,180 | 4.66 | 122,984 | 4,454 | 4.83 | |||||||||||||
| Total borrowings | 117,798 | 3,505 | 3.97 | 155,032 | 4,727 | 4.07 | |||||||||||||
| Total interest-bearing liabilities | 1,674,589 | 31,476 | 2.51 | 1,561,183 | 17,964 | 1.54 | |||||||||||||
| Noninterest-bearing demand deposits | 533,113 | 582,573 | |||||||||||||||||
| Other liabilities | 45,835 | 42,108 | |||||||||||||||||
| Total liabilities | 2,253,537 | 2,185,864 | |||||||||||||||||
| Equity | 218,642 | 203,606 | |||||||||||||||||
| Total liabilities and equity | $ | 2,472,179 | $ | 2,389,470 | |||||||||||||||
| Net interest income | $ | 72,534 | $ | 74,460 | |||||||||||||||
| Interest rate spread | 3.38 | % | 3.88 | % | |||||||||||||||
| Interest expense to average earning assets | 1.78 | % | 1.05 | % | |||||||||||||||
| Net interest margin | 4.11 | % | 4.37 | % | |||||||||||||||
| 9/30/2024 | |||||||||
| Funding Sources | Capacity | Outstanding | Available | ||||||
| Unsecured federal funds agreements | $ | 75,000 | $ | — | $ | 75,000 | |||
| Borrowings from FHLB | 254,445 | 60,000 | 194,445 | ||||||
| Borrowings from Federal Reserve Bank | 314,385 | — | 314,385 | ||||||
| Total | $ | 643,830 | $ | 60,000 | $ | 583,830 | |||
| Asset Quality | 9/30/2024 | 12/31/2023 | |||||
| Community Banking | |||||||
| Total loans | $ | 1,432,109 | $ | 1,273,629 | |||
| Nonaccrual loans | $ | 628 | $ | 406 | |||
| Allowance for credit losses (ACL) | $ | 17,533 | $ | 16,072 | |||
| Nonaccrual loans to total loans | 0.04 | % | 0.03 | % | |||
| ACL to total loans | 1.22 | % | 1.26 | % | |||
| ACL to nonaccrual loans | 2,791.88 | % | 3,958.62 | % | |||
| Annualized year-to-date net charge-offs to average loans | 0.01 | % | 0.01 | % | |||
| Consumer Finance | |||||||
| Total loans | $ | 477,300 | $ | 468,510 | |||
| Nonaccrual loans | $ | 1,101 | $ | 892 | |||
| Repossessed assets | $ | 522 | $ | 646 | |||
| ACL | $ | 23,238 | $ | 23,579 | |||
| Nonaccrual loans to total loans | 0.23 | % | 0.19 | % | |||
| ACL to total loans | 4.87 | % | 5.03 | % | |||
| ACL to nonaccrual loans | 2,110.63 | % | 2,643.39 | % | |||
| Annualized year-to-date net charge-offs to average loans | 2.36 | % | 1.99 | % | |||
| For The | For The | |||||||||||||||||||
| Quarter Ended | Nine Months Ended | |||||||||||||||||||
| Other Performance Data | 9/30/2024 | 9/30/2023 | 9/30/2024 | 9/30/2023 | ||||||||||||||||
| Net Income (Loss): | ||||||||||||||||||||
| Community Banking | $ | 5,337 | $ | 5,685 | $ | 13,920 | $ | 17,742 | ||||||||||||
| Mortgage Banking | 351 | (5 | ) | 1,021 | 568 | |||||||||||||||
| Consumer Finance | 311 | 682 | 1,142 | 2,261 | ||||||||||||||||
| Other1 | (579 | ) | (585 | ) | (2,194 | ) | (1,913 | ) | ||||||||||||
| Total | $ | 5,420 | $ | 5,777 | $ | 13,889 | $ | 18,658 | ||||||||||||
| Net income attributable to C&F Financial Corporation | $ | 5,389 | $ | 5,789 | $ | 13,797 | $ | 18,536 | ||||||||||||
| Earnings per share - basic and diluted | $ | 1.65 | $ | 1.71 | $ | 4.15 | $ | 5.41 | ||||||||||||
| Weighted average shares outstanding - basic and diluted | 3,258,420 | 3,391,624 | 3,323,942 | 3,426,845 | ||||||||||||||||
| Annualized return on average assets | 0.86 | % | 0.96 | % | 0.75 | % | 1.04 | % | ||||||||||||
| Annualized return on average equity | 9.74 | % | 11.28 | % | 8.47 | % | 12.22 | % | ||||||||||||
| Annualized return on average tangible common equity2 | 11.16 | % | 13.19 | % | 9.74 | % | 14.18 | % | ||||||||||||
| Dividends declared per share | $ | 0.44 | $ | 0.44 | $ | 1.32 | $ | 1.32 | ||||||||||||
| Mortgage loan originations - Mortgage Banking | $ | 156,968 | $ | 129,658 | $ | 397,324 | $ | 400,559 | ||||||||||||
| Mortgage loans sold - Mortgage Banking | 146,143 | 140,214 | 367,449 | 389,465 | ||||||||||||||||
________________________
1 Includes results of the holding company that are not allocated to the business segments and elimination of inter-segment activity.
2 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.”
| Market Ratios | 9/30/2024 | 12/31/2023 | |||||
| Market value per share | $ | 58.35 | $ | 68.19 | |||
| Book value per share | $ | 70.29 | $ | 64.28 | |||
| Price to book value ratio | 0.83 | 1.06 | |||||
| Tangible book value per share1 | $ | 62.13 | $ | 56.40 | |||
| Price to tangible book value ratio1 | 0.94 | 1.21 | |||||
| Price to earnings ratio (ttm) | 10.30 | 9.87 | |||||
________________________
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 | 9/30/2024 | 12/31/2023 | Requirements3 | |||||||
| C&F Financial Corporation1 | ||||||||||
| Total risk-based capital ratio | 13.8 | % | 14.8 | % | 8.0 | % | ||||
| Tier 1 risk-based capital ratio | 11.6 | % | 12.6 | % | 6.0 | % | ||||
| Common equity tier 1 capital ratio | 10.5 | % | 11.3 | % | 4.5 | % | ||||
| Tier 1 leverage ratio | 9.8 | % | 10.1 | % | 4.0 | % | ||||
| C&F Bank2 | ||||||||||
| Total risk-based capital ratio | 13.4 | % | 14.1 | % | 8.0 | % | ||||
| Tier 1 risk-based capital ratio | 12.1 | % | 12.9 | % | 6.0 | % | ||||
| Common equity tier 1 capital ratio | 12.1 | % | 12.9 | % | 4.5 | % | ||||
| Tier 1 leverage ratio | 10.1 | % | 10.3 | % | 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 September 30, 2024 are estimates and subject to change pending regulatory filings. All ratios at December 31, 2023 are presented as filed.
3 The ratios presented for minimum capital requirements are those to be considered adequately capitalized.
| For The Quarter Ended | For The Nine Months Ended | |||||||||||||||||||
| 9/30/2024 | 9/30/2023 | 9/30/2024 | 9/30/2023 | |||||||||||||||||
| Reconciliation of Certain Non-GAAP Financial Measures | ||||||||||||||||||||
| Return on Average Tangible Common Equity | ||||||||||||||||||||
| Average total equity, as reported | $ | 222,532 | $ | 204,840 | $ | 218,642 | $ | 203,606 | ||||||||||||
| Average goodwill | (25,191 | ) | (25,191 | ) | (25,191 | ) | (25,191 | ) | ||||||||||||
| Average other intangible assets | (1,242 | ) | (1,507 | ) | (1,303 | ) | (1,572 | ) | ||||||||||||
| Average noncontrolling interest | (573 | ) | (484 | ) | (670 | ) | (668 | ) | ||||||||||||
| Average tangible common equity | $ | 195,526 | $ | 177,658 | $ | 191,478 | $ | 176,175 | ||||||||||||
| Net income | $ | 5,420 | $ | 5,777 | $ | 13,889 | $ | 18,658 | ||||||||||||
| Amortization of intangibles | 65 | 69 | 195 | 205 | ||||||||||||||||
| Net (income) loss attributable to noncontrolling interest | (31 | ) | 12 | (92 | ) | (122 | ) | |||||||||||||
| Net tangible income attributable to C&F Financial Corporation | $ | 5,454 | $ | 5,858 | $ | 13,992 | $ | 18,741 | ||||||||||||
| Annualized return on average equity, as reported | 9.74 | % | 11.28 | % | 8.47 | % | 12.22 | % | ||||||||||||
| Annualized return on average tangible common equity | 11.16 | % | 13.19 | % | 9.74 | % | 14.18 | % | ||||||||||||
| For The Quarter Ended | For The Nine Months Ended | |||||||||||||
| 9/30/2024 | 9/30/2023 | 9/30/2024 | 9/30/2023 | |||||||||||
| Fully Taxable Equivalent Net Interest Income1 | ||||||||||||||
| Interest income on loans | $ | 33,021 | $ | 28,369 | $ | 94,014 | $ | 81,845 | ||||||
| FTE adjustment | 49 | 54 | 152 | 154 | ||||||||||
| FTE interest income on loans | $ | 33,070 | $ | 28,423 | $ | 94,166 | $ | 81,999 | ||||||
| Interest income on securities | $ | 2,721 | $ | 2,938 | $ | 8,326 | $ | 9,048 | ||||||
| FTE adjustment | 237 | 196 | 707 | 541 | ||||||||||
| FTE interest income on securities | $ | 2,958 | $ | 3,134 | $ | 9,033 | $ | 9,589 | ||||||
| Total interest income | $ | 36,131 | $ | 31,686 | $ | 103,151 | $ | 91,729 | ||||||
| FTE adjustment | 286 | 250 | 859 | 695 | ||||||||||
| FTE interest income | $ | 36,417 | $ | 31,936 | $ | 104,010 | $ | 92,424 | ||||||
| Net interest income | $ | 24,689 | $ | 24,462 | $ | 71,675 | $ | 73,765 | ||||||
| FTE adjustment | 286 | 250 | 859 | 695 | ||||||||||
| FTE net interest income | $ | 24,975 | $ | 24,712 | $ | 72,534 | $ | 74,460 | ||||||
____________________
1 Assuming a tax rate of
| 9/30/2024 | 12/31/2023 | ||||||||
| Tangible Book Value Per Share | |||||||||
| Equity attributable to C&F Financial Corporation | $ | 227,340 | $ | 216,878 | |||||
| Goodwill | (25,191 | ) | (25,191 | ) | |||||
| Other intangible assets | (1,211 | ) | (1,407 | ) | |||||
| Tangible equity attributable to C&F Financial Corporation | $ | 200,938 | $ | 190,280 | |||||
| Shares outstanding | 3,234,363 | 3,374,098 | |||||||
| Book value per share | $ | 70.29 | $ | 64.28 | |||||
| Tangible book value per share | $ | 62.13 | $ | 56.40 | |||||
| Contact: | Jason Long, CFO and Secretary |
| (804) 843-2360 |
FAQ
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