C&F Financial Corporation Announces Net Income for Third Quarter and First Nine Months
C&F Financial Corporation (NASDAQ: CFFI) reported a consolidated net income of $6.5 million for Q3 2022, down $1.3 million from Q3 2021. Year-to-date net income for 2022 stands at $19.1 million, a decline of $4.0 million year-on-year. Key highlights include an 8.6% growth in community banking loans and a substantial 26.2% increase in consumer finance loans. However, mortgage banking segment originations plummeted by nearly 49% amidst rising interest rates. A quarterly dividend of 42 cents per share was declared, reflecting a 5% increase from the previous quarter.
- Community banking segment loans grew by $23 million or 8.6% annualized from Q2 2022.
- Consumer finance segment loans increased by $28.6 million or 26.2% annualized from Q2 2022.
- Average deposits rose by 9.0% in Q3 2022 compared to Q3 2021.
- Net interest margin improved to 4.37% in Q3 2022 from 4.25% in Q3 2021.
- Quarterly cash dividend increased by 5% to 42 cents per share.
- Consolidated net income decreased by $4.0 million year-to-date from 2021.
- Mortgage banking originations fell 48.6% in Q3 2022 compared to Q3 2021.
- Annualized return on average equity dropped to 13.20% from 15.66% year-on-year.
TOANO, Va., Oct. 27, 2022 (GLOBE NEWSWIRE) -- C&F Financial Corporation (the Corporation) (NASDAQ: CFFI), the one-bank holding company for C&F Bank, today reported consolidated net income of
| For The Quarter Ended | For The Nine Months Ended | |||||||||||||||
| (Dollars in thousands, except for per share data) | 9/30/2022 | 9/30/2021 | 9/30/2022 | 9/30/2021 | ||||||||||||
| Consolidated net income | $ | 6,545 | $ | 7,827 | $ | 19,063 | $ | 23,082 | ||||||||
| Earnings per share - basic and diluted | $ | 1.85 | $ | 2.16 | $ | 5.34 | $ | 6.27 | ||||||||
| Annualized return on average equity | 13.20 | % | 15.66 | % | 12.63 | % | 15.77 | % | ||||||||
| Annualized return on average tangible common equity1 | 15.35 | % | 18.02 | % | 14.67 | % | 18.35 | % | ||||||||
| Annualized return on average assets | 1.12 | % | 1.44 | % | 1.10 | % | 1.43 | % | ||||||||
________________________
1For more information about this non-GAAP financial measure, please see “Use of Certain Non-GAAP Financial Measures” and “Reconciliation of Certain Non-GAAP Financial Measures.”
Tom Cherry, President and Chief Executive Officer of C&F Financial Corporation, commented, “In the third quarter, we maintained our momentum from the first half of the year with strong loan growth at the community banking and consumer finance segments. Asset quality remains sound at both segments, which continue to see low delinquencies and charge-offs. Our margins are increasing as the Federal Reserve continues to raise short term interest rates. Given the recent increases in interest rates, the mortgage industry has seen a significant decline in volume and our mortgage banking segment is no exception. However, we are confident our traditional focus on purchase lending, as opposed to refinancing activity, will help keep us competitive in the market. We are following the impact of inflation and rising interest rates on our customers and on our own operating costs, but we believe earnings and asset quality are solid as we head into the fourth quarter of 2022.”
Key highlights for the third quarter and first nine months of 2022 are as follows.
- Community banking segment loans as of September 30, 2022 grew
$23.0 million , or 8.6 percent annualized, compared to June 30, 2022, excluding the effect of Paycheck Protection Program (PPP) loans. Average community bank segment loans increased 9.9 percent and 8.9 percent for the third quarter and first nine months of 2022, respectively, compared to the same periods in 2021, excluding the effect of PPP loans; - Consumer finance segment loans as of September 30, 2022 grew
$28.6 million , or 26.2 percent annualized, compared to June 30, 2022. Average consumer finance segment loans increased 33.6 percent and 28.0 percent for the third quarter and first nine months of 2022, respectively, compared to the same periods in 2021; - Average deposits increased 9.0 percent and 8.9 percent for the third quarter and first nine months of 2022, respectively, compared to the same periods in 2021;
- The community banking segment recorded no provision for loan losses for the third quarter of 2022 and 2021. For the first nine months of 2022 and 2021, the community banking segment recorded net reversals of provision for loan losses of
$700,000 and$200,000 , respectively; - The consumer finance segment recorded provision for loan losses of
$1.2 million and$400,000 for the third quarter of 2022 and 2021, respectively. For the first nine months of 2022 and 2021, the consumer finance segment recorded provision for loan losses of$2.1 million and$220,000 , respectively; - Consolidated annualized net interest margin was 4.37 percent for the third quarter of 2022, compared to 4.25 percent and 4.12 percent for the third quarter of 2021 and second quarter of 2022, respectively. The increase in the third quarter of 2022 compared to the second quarter of 2022 was due primarily to utilizing lower yielding cash to fund growth in higher yielding loans and securities, as well as higher average yields on earning assets, including the effects of rising market interest rates. Consolidated annualized net interest margin was 4.15 percent for the first nine months of 2022, compared to 4.31 percent for the first nine months of 2021;
- The community banking segment recognized no net PPP origination fees in the third quarter of 2022 and
$679,000 in the first nine months of 2022, compared to$1.3 million and$3.4 million in the third quarter and first nine months of 2021, respectively. All net PPP origination fees received by C&F Bank had been recognized in income as of June 30, 2022; - The consumer finance segment experienced net charge-offs at an annualized rate of 0.71 percent of average total loans for the third quarter of 2022, compared to net recoveries of 0.09 for the third quarter of 2021. Annualized net charge-offs as a percentage of average total loans were 0.19 percent for the first nine months of 2022, compared to net recoveries of 0.08 for the first nine months of 2021. Delinquencies remain lower than pre-pandemic levels and a strong used car market has mitigated losses on defaulted loans;
- The consumer finance segment’s average loan yield declined as a result of pursuing growth in higher quality, lower yielding loans, partially offset by rising interest rates; and
- Mortgage banking segment loan originations decreased 48.6 percent and 49.6 percent for the third quarter and first nine months of 2022 amid rising mortgage interest rates and declines in mortgage industry volume.
Community Banking Segment. The community banking segment reported net income of
Community banking segment net income increased
- higher interest income resulting from higher average balances of interest-earning assets, including loans and securities, and the effects of rising interest rates on asset yields;
- lower interest expense for the first nine months due to lower average cost of time deposits and a shift in balances from time deposits toward lower-cost savings, money market and demand deposits;
- higher revenue from overdraft fees and debit card interchange fees; and
- a reversal of provision for loan losses of
$700,000 in the first nine months of 2022, due primarily to the resolution of certain impaired loans and continued strong credit quality of the loan portfolio, compared to a reversal of provision for loan losses of$200,000 in the first nine months of 2021,
partially offset by:
- lower recognition of net PPP origination fees and lower interest income on purchased credit impaired (PCI) loans;
- higher salaries and employee benefits expense including adding new talent to the commercial lending team;
- the sale of an other real estate owned (OREO) property in the second quarter of 2021, which resulted in a gain of
$399,000 ; and - higher marketing and travel expense as typical programs and community and educational events return to normalized levels after reduced activity due to COVID-19 during 2021.
Average loans increased
Average loan yields were lower for the third quarter and first nine months of 2022 compared to the same periods in 2021, due primarily to lower recognition of net origination fees on PPP loans and lower interest income on PCI loans, partially offset by the effects of rising interest rates during 2022. PPP loans earn interest at a note rate of one percent as well as net origination fees that were amortized over the contractual term of the related loan or accelerated into interest income upon repayment of the loan. There were no net PPP origination fees recognized in the third quarter of 2022 and
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 third quarter and first nine months of 2022 compared to the same periods in 2021 was due primarily to lower volume of mortgage loan originations and mortgage lender services, lower margins on sales of mortgage loans, and lower average balances of loans held for sale, partially offset by lower provision for indemnification reserves and lower expenses tied to mortgage loan origination volume such as salaries and employee benefits, loan processing, and data processing.
Mortgage loan originations for the mortgage banking segment were
During the third quarter and first nine months of 2022, the mortgage banking segment recorded provisions for indemnification losses of
Consumer Finance Segment. The consumer finance segment reported net income of
Net income for the consumer finance segment decreased
Average loans outstanding increased
Capital and Dividends. The Corporation increased its quarterly cash dividend by 5 percent compared to the previous quarterly dividend, to 42 cents per share during the third quarter of 2022. This dividend, paid to shareholders on October 1, 2022 represents a payout ratio of 22.7 percent of earnings per share for the third quarter of 2022. 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.
Total consolidated equity decreased
In November 2021, the Board of Directors authorized a program, effective December 1, 2021, to repurchase up to
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 30 banking offices and 4 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, 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 from its headquarters in Richmond, 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 return on tangible common equity (ROTCE), 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 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, 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, expected future recovery of investments in debt securities, future dividend payments, strategic business initiatives and the anticipated effects thereof, rising interest rates and the effects thereof on net interest income, mortgage loan originations, technology initiatives, our diversified business strategy, asset quality, 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, 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: (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, inflation rates, supply chain disruptions and slowdowns in economic growth, and also including the economic impacts of the COVID-19 pandemic and the heightened impact it has on many of the risks described herein and in other periodic reports the Corporation files with the SEC, (4) 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, (5) 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, (6) the value of securities held in the Corporation’s investment portfolios, (7) the quality or composition of the loan portfolios and the value of the collateral securing those loans, (8) the inventory level and pricing of used automobiles, including sales prices of repossessed vehicles, (9) the level of net charge-offs on loans and the adequacy of our allowance for loan losses, (10) the level of indemnification losses related to mortgage loans sold, (11) demand for loan products, (12) deposit flows, (13) the strength of the Corporation’s counterparties, (14) competition from both banks and non-banks, including competition in the non-prime automobile finance markets, (15) demand for financial services in the Corporation’s market area, (16) reliance on third parties for key services, (17) the commercial and residential real estate markets, (18) demand for residential mortgages and conditions in the secondary residential mortgage loan markets, (19) the Corporation’s technology initiatives and other strategic initiatives, (20) the Corporation’s branch expansions and consolidations, (21) cyber threats, attacks or events, (22) expansion of C&F Bank’s product offerings, and (23) 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, 2021 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 | 9/30/2022 | 12/31/2021 | 9/30/2021 | ||||||
| Interest-bearing deposits in other banks | $ | 82,268 | $ | 248,053 | $ | 186,494 | |||
| Investment securities - available for sale, at fair value | 499,564 | 373,073 | 363,413 | ||||||
| Loans held for sale, at fair value | 33,541 | 82,295 | 116,789 | ||||||
| Loans, net: | |||||||||
| Community Banking segment, excluding PPP loans | 1,080,643 | 999,912 | 986,012 | ||||||
| PPP loans | 496 | 17,762 | 31,452 | ||||||
| Mortgage Banking segment | 5,732 | 8,826 | 8,896 | ||||||
| Consumer Finance segment | 439,451 | 343,403 | 325,204 | ||||||
| Total assets | 2,339,065 | 2,264,521 | 2,209,408 | ||||||
| Deposits | 2,019,697 | 1,914,614 | 1,853,085 | ||||||
| Repurchase agreements | 37,633 | 34,735 | 37,006 | ||||||
| Other borrowings | 55,553 | 55,726 | 55,784 | ||||||
| Total equity | 185,440 | 211,024 | 205,182 | ||||||
| For The | For The | ||||||||||||||||
| Quarter Ended | Nine Months Ended | ||||||||||||||||
| Results of Operations | 9/30/2022 | 9/30/2021 | 9/30/2022 | 9/30/2021 | |||||||||||||
| Interest income | $ | 26,326 | $ | 23,604 | $ | 72,949 | $ | 70,546 | |||||||||
| Interest expense | 1,946 | 1,986 | 5,462 | 6,524 | |||||||||||||
| Provision for loan losses: | |||||||||||||||||
| Community Banking segment | - | - | (700 | ) | (200 | ) | |||||||||||
| Mortgage Banking segment | - | 30 | 32 | 90 | |||||||||||||
| Consumer Finance segment | 1,200 | 400 | 2,070 | 220 | |||||||||||||
| Noninterest income: | |||||||||||||||||
| Gains on sales of loans | 1,870 | 5,660 | 6,763 | 18,665 | |||||||||||||
| Other | 4,259 | 6,107 | 11,758 | 20,008 | |||||||||||||
| Noninterest expenses: | |||||||||||||||||
| Salaries and employee benefits | 12,202 | 13,915 | 34,700 | 45,242 | |||||||||||||
| Other | 8,887 | 8,986 | 25,699 | 27,311 | |||||||||||||
| Income tax expense | 1,675 | 2,227 | 5,144 | 6,950 | |||||||||||||
| Net income | 6,545 | 7,827 | 19,063 | 23,082 | |||||||||||||
| Fully-taxable equivalent (FTE) amounts1 | |||||||||||||||||
| Interest income on loans-FTE | 23,200 | 22,145 | 65,676 | 66,469 | |||||||||||||
| Interest income on securities-FTE | 2,756 | 1,513 | 6,655 | 4,322 | |||||||||||||
| Total interest income-FTE | 26,477 | 23,735 | 73,352 | 70,962 | |||||||||||||
| Net interest income-FTE | 24,531 | 21,749 | 67,890 | 64,438 | |||||||||||||
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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 | Nine Months Ended | ||||||||||||||||||
| Average Balances | 9/30/2022 | 6/30/2022 | 9/30/2021 | 9/30/2022 | 9/30/2021 | ||||||||||||||
| Securities | $ | 538,901 | $ | 469,546 | $ | 357,713 | $ | 472,301 | $ | 328,942 | |||||||||
| Loans held for sale | 32,908 | 47,545 | 103,110 | 43,486 | 131,549 | ||||||||||||||
| Loans: | |||||||||||||||||||
| Community Banking segment, excluding PPP loans | 1,082,236 | 1,054,228 | 985,079 | 1,050,045 | 964,657 | ||||||||||||||
| PPP loans | 711 | 3,299 | 48,212 | 4,797 | 74,585 | ||||||||||||||
| Mortgage Banking segment | 11,308 | 9,848 | 10,326 | 10,306 | 10,288 | ||||||||||||||
| Consumer Finance segment | 453,401 | 417,503 | 339,283 | 417,604 | 326,333 | ||||||||||||||
| Interest-bearing deposits in other banks | 105,683 | 215,240 | 184,603 | 191,436 | 158,635 | ||||||||||||||
| Total earning assets | 2,225,148 | 2,217,209 | 2,028,326 | 2,189,975 | 1,994,989 | ||||||||||||||
| Total assets | 2,336,456 | 2,345,567 | 2,178,742 | 2,315,220 | 2,146,550 | ||||||||||||||
| Time, checking and savings deposits | 1,376,407 | 1,383,983 | 1,274,640 | 1,365,939 | 1,272,639 | ||||||||||||||
| Repurchase agreements | 36,913 | 36,527 | 29,597 | 35,403 | 24,425 | ||||||||||||||
| Other borrowings | 55,585 | 55,645 | 55,815 | 55,646 | 55,803 | ||||||||||||||
| Total interest-bearing liabilities | 1,468,905 | 1,476,155 | 1,360,052 | 1,456,988 | 1,352,867 | ||||||||||||||
| Noninterest-bearing demand deposits | 631,519 | 630,154 | 568,275 | 616,032 | 547,118 | ||||||||||||||
| Total equity | 198,363 | 196,540 | 199,954 | 201,181 | 195,156 | ||||||||||||||
| Annualized Average Yields and Rates | |||||||||||||||||||
| Loans: | |||||||||||||||||||
| Community Banking segment | 4.20 | % | 4.21 | % | 4.57 | % | 4.19 | % | 4.55 | % | |||||||||
| Mortgage Banking segment | 4.99 | 4.40 | 3.02 | 4.16 | 2.84 | ||||||||||||||
| Consumer Finance segment | 9.78 | 9.82 | 10.98 | 9.92 | 11.50 | ||||||||||||||
| Time, checking and savings deposits | 0.37 | 0.32 | 0.38 | 0.34 | 0.45 | ||||||||||||||
| Net interest margin | 4.37 | 4.12 | 4.25 | 4.15 | 4.31 | ||||||||||||||
| Asset Quality | 9/30/2022 | 12/31/2021 | 9/30/2021 | |||||||||
| Community Banking | ||||||||||||
| Loans, excluding purchased loans and PPP loans | $ | 1,053,648 | $ | 954,262 | $ | 934,484 | ||||||
| Purchased performing loans1 | 39,782 | 56,798 | 60,911 | |||||||||
| Purchased credit impaired loans1 | 1,441 | 3,655 | 5,440 | |||||||||
| PPP loans2 | 496 | 17,762 | 31,452 | |||||||||
| Total loans | $ | 1,095,367 | $ | 1,032,477 | $ | 1,032,287 | ||||||
| Nonaccrual loans | $ | 1,449 | $ | 2,359 | $ | 2,555 | ||||||
| Other real estate owned (OREO) | $ | 423 | $ | 835 | $ | 857 | ||||||
| Impaired loans3 | $ | 2,114 | $ | 5,058 | $ | 5,180 | ||||||
| Allowance for loan losses (ALL) | $ | 14,228 | $ | 14,803 | $ | 14,823 | ||||||
| Nonaccrual loans to total loans | 0.13 | % | 0.23 | % | 0.25 | % | ||||||
| ALL to total loans | 1.30 | % | 1.43 | % | 1.44 | % | ||||||
| ALL to nonaccrual loans | 981.92 | % | 627.51 | % | 580.16 | % | ||||||
| ALL to total loans, excluding purchased credit impaired loans4 | 1.30 | % | 1.44 | % | 1.44 | % | ||||||
| ALL to total loans, excluding purchased loans and PPP loans | 1.35 | % | 1.55 | % | 1.59 | % | ||||||
| Annualized year-to-date net charge-offs to average loans | 0.01 | % | 0.01 | % | 0.01 | % | ||||||
| Mortgage Banking | ||||||||||||
| Total loans | $ | 6,122 | $ | 9,389 | $ | 9,594 | ||||||
| Nonaccrual loans | $ | 312 | $ | 185 | $ | 186 | ||||||
| Impaired loans | $ | 150 | $ | 150 | $ | - | ||||||
| ALL | $ | 390 | $ | 563 | $ | 698 | ||||||
| Nonaccrual loans to total loans | 5.10 | % | 1.97 | % | 1.94 | % | ||||||
| ALL to total loans | 6.37 | % | 6.00 | % | 7.28 | % | ||||||
| ALL to nonaccrual loans | 125.00 | % | 304.32 | % | 375.27 | % | ||||||
| Annualized year-to-date net charge-offs to average loans | - | % | - | % | - | % | ||||||
| Consumer Finance | ||||||||||||
| Total loans | $ | 465,713 | $ | 368,194 | $ | 349,130 | ||||||
| Nonaccrual loans | $ | 543 | $ | 380 | $ | 198 | ||||||
| Repossessed assets | $ | 276 | $ | 190 | $ | 196 | ||||||
| ALL | $ | 26,262 | $ | 24,791 | $ | 23,926 | ||||||
| Nonaccrual loans to total loans | 0.12 | % | 0.10 | % | 0.06 | % | ||||||
| ALL to total loans | 5.64 | % | 6.73 | % | 6.85 | % | ||||||
| ALL to nonaccrual loans | 4,836.46 | % | 6,523.95 | % | 12,083.84 | % | ||||||
| Annualized year-to-date net charge-offs (recoveries) to average loans | 0.19 | % | (0.14 | )% | (0.08 | )% | ||||||
________________________
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 Impaired loans includes
4 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 | Nine Months Ended | |||||||||||||||
| Other Performance Data | 9/30/2022 | 9/30/2021 | 9/30/2022 | 9/30/2021 | ||||||||||||
| Net Income (Loss): | ||||||||||||||||
| Community Banking | $ | 5,421 | $ | 4,166 | $ | 13,754 | $ | 10,884 | ||||||||
| Mortgage Banking | 24 | 2,108 | 1,672 | 6,621 | ||||||||||||
| Consumer Finance | 1,779 | 2,194 | 6,036 | 7,596 | ||||||||||||
| Other1 | (679 | ) | (641 | ) | (2,399 | ) | (2,019 | ) | ||||||||
| Total | $ | 6,545 | $ | 7,827 | $ | 19,063 | $ | 23,082 | ||||||||
| Net income attributable to C&F Financial Corporation | $ | 6,480 | $ | 7,674 | $ | 18,851 | $ | 22,743 | ||||||||
| Earnings per share - basic and diluted | $ | 1.85 | $ | 2.16 | $ | 5.34 | $ | 6.27 | ||||||||
| Weighted average shares outstanding - basic and diluted | 3,511,326 | 3,550,001 | 3,531,064 | 3,626,083 | ||||||||||||
| Annualized return on average assets | 1.12 | % | 1.44 | % | 1.10 | % | 1.43 | % | ||||||||
| Annualized return on average equity | 13.20 | % | 15.66 | % | 12.63 | % | 15.77 | % | ||||||||
| Annualized return on average tangible common equity2 | 15.35 | % | 18.02 | % | 14.67 | % | 18.35 | % | ||||||||
| Dividends declared per share | $ | 0.42 | $ | 0.40 | $ | 1.22 | $ | 1.18 | ||||||||
| Mortgage loan originations - Mortgage Banking | $ | 184,282 | $ | 358,251 | $ | 585,258 | $ | 1,162,062 | ||||||||
| Mortgage loans sold - Mortgage Banking | 193,838 | 360,170 | 632,131 | 1,255,907 | ||||||||||||
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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 | 9/30/2022 | 12/31/2021 | |||||
| Market value per share | $ | 53.50 | $ | 51.19 | |||
| Book value per share | $ | 52.92 | $ | 59.32 | |||
| Price to book value ratio | 1.01 | 0.86 | |||||
| Tangible book value per share1 | $ | 45.20 | $ | 51.66 | |||
| Price to tangible book value ratio1 | 1.18 | 0.99 | |||||
| Price to earnings ratio (ttm) | 7.63 | 6.44 | |||||
________________________
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 | 9/30/2022 | 12/31/2021 | Requirements3 | |||||||
| C&F Financial Corporation1 | ||||||||||
| Total risk-based capital ratio | 15.4 | % | 15.8 | % | 8.0 | % | ||||
| Tier 1 risk-based capital ratio | 12.8 | % | 13.0 | % | 6.0 | % | ||||
| Common equity tier 1 capital ratio | 11.4 | % | 11.5 | % | 4.5 | % | ||||
| Tier 1 leverage ratio | 9.6 | % | 9.7 | % | 4.0 | % | ||||
| C&F Bank2 | ||||||||||
| Total risk-based capital ratio | 14.2 | % | 14.5 | % | 8.0 | % | ||||
| Tier 1 risk-based capital ratio | 12.9 | % | 13.3 | % | 6.0 | % | ||||
| Common equity tier 1 capital ratio | 12.9 | % | 13.3 | % | 4.5 | % | ||||
| Tier 1 leverage ratio | 9.7 | % | 9.8 | % | 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, 2022 are estimates and subject to change pending regulatory filings. All ratios at December 31, 2021 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 | |||||||||||||||
| 9/30/2022 | 9/30/2021 | 9/30/2022 | 9/30/2021 | |||||||||||||
| Reconciliation of Certain Non-GAAP Financial Measures | ||||||||||||||||
| Return on Average Tangible Common Equity | ||||||||||||||||
| Average total equity, as reported | $ | 198,363 | $ | 199,954 | $ | 201,181 | $ | 195,156 | ||||||||
| Average goodwill | (25,191 | ) | (25,191 | ) | (25,191 | ) | (25,191 | ) | ||||||||
| Average other intangible assets | (1,781 | ) | (2,092 | ) | (1,857 | ) | (2,166 | ) | ||||||||
| Average noncontrolling interest | (525 | ) | (564 | ) | (769 | ) | (839 | ) | ||||||||
| Average tangible common equity | $ | 170,866 | $ | 172,107 | $ | 173,364 | $ | 166,960 | ||||||||
| Net income | $ | 6,545 | $ | 7,827 | $ | 19,063 | $ | 23,082 | ||||||||
| Amortization of intangibles | 75 | 79 | 224 | 236 | ||||||||||||
| Net income attributable to noncontrolling interest | (65 | ) | (153 | ) | (212 | ) | (339 | ) | ||||||||
| Net income attributable to C&F Financial Corporation | $ | 6,555 | $ | 7,753 | $ | 19,075 | $ | 22,979 | ||||||||
| Annualized return on average tangible common equity | 15.35 | % | 18.02 | % | 14.67 | % | 18.35 | % | ||||||||
| Fully Taxable Equivalent Net Interest Income1 | ||||||||||||||||
| Interest income on loans | $ | 23,159 | $ | 22,120 | $ | 65,566 | $ | 66,399 | ||||||||
| FTE adjustment | 41 | 25 | 110 | 70 | ||||||||||||
| FTE interest income on loans | $ | 23,200 | $ | 22,145 | $ | 65,676 | $ | 66,469 | ||||||||
| Interest income on securities | $ | 2,646 | $ | 1,407 | $ | 6,362 | $ | 3,976 | ||||||||
| FTE adjustment | 110 | 106 | 293 | 346 | ||||||||||||
| FTE interest income on securities | $ | 2,756 | $ | 1,513 | $ | 6,655 | $ | 4,322 | ||||||||
| Total interest income | $ | 26,326 | $ | 23,604 | $ | 72,949 | $ | 70,546 | ||||||||
| FTE adjustment | 151 | 131 | 403 | 416 | ||||||||||||
| FTE interest income | $ | 26,477 | $ | 23,735 | $ | 73,352 | $ | 70,962 | ||||||||
| Net interest income | $ | 24,380 | $ | 21,618 | $ | 67,487 | $ | 64,022 | ||||||||
| FTE adjustment | 151 | 131 | 403 | 416 | ||||||||||||
| FTE net interest income | $ | 24,531 | $ | 21,749 | $ | 67,890 | $ | 64,438 | ||||||||
________________________
1 Assuming a tax rate of
| September 30, | December 31, | ||||||||
| 2022 | 2021 | ||||||||
| Tangible Book Value Per Share | |||||||||
| Equity attributable to C&F Financial Corporation | $ | 184,767 | $ | 210,318 | |||||
| Goodwill | (25,191 | ) | (25,191 | ) | |||||
| Other intangible assets | (1,753 | ) | (1,977 | ) | |||||
| Tangible equity attributable to C&F Financial Corporation | $ | 157,823 | $ | 183,150 | |||||
| Shares outstanding | 3,491,184 | 3,545,554 | |||||||
| Book value per share | $ | 52.92 | $ | 59.32 | |||||
| Tangible book value per share | $ | 45.20 | $ | 51.66 | |||||
| Contact: | Jason Long, CFO and Secretary |
| (804) 843-2360 |
FAQ
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