C&F Financial Corporation Announces Record Net Income for 2020
C&F Financial Corporation (NASDAQ:CFFI) reported record consolidated net income of $8.1 million for Q4 2020, up from $4.4 million in Q4 2019. Adjusted net income was $7.1 million, reflecting strong loan growth and reduced interest expenses. The annualized ROE and ROA reached 17.80% and 1.57% for Q4 2020, respectively. For the full year, net income was $22.4 million, compared to $18.9 million in 2019. Key growth factors included a 9.9% increase in average loans and significant gains from mortgage banking operations, with net income surging 198% in Q4 2020.
- Record consolidated net income of $8.1 million for Q4 2020, a 84% increase from Q4 2019.
- Annualized ROE of 17.80% and ROA of 1.57% for Q4 2020, up from 10.78% and 1.06% in Q4 2019.
- Adjusted net income for the year was $22.4 million, up from $18.9 million in 2019.
- Mortgage banking segment net income increased 198% in Q4 2020 due to higher margins and record loan originations.
- Community banking segment net income decreased to $5.4 million for 2020, down from $9.9 million in 2019.
- Incurred $2.2 million in early repayment charges due to the payoff of borrowings.
- Increased provision for loan losses due to the COVID-19 pandemic and resulting economic disruption.
- Total nonperforming assets rose to $3.9 million at the end of 2020, up from $2.6 million in 2019.
WEST POINT, Va., Jan. 27, 2021 (GLOBE NEWSWIRE) -- C&F Financial Corporation (the Corporation) (NASDAQ:CFFI), the one-bank holding company for C&F Bank, today reported record quarterly consolidated net income of
For the year ended December 31, 2020, the Corporation reported record consolidated net income of
Adjusted net income for the fourth quarter of 2020 and year ended December 31, 2020 and the same periods in 2019 excludes the effects of a gain upon sale of a pool of purchased credit impaired (PCI) loans in the fourth quarter of 2020, charges related to early repayment of borrowings in the fourth quarter of 2020, merger related expenses recorded in 2020 and 2019, impairment charges related to a branch consolidation in 2020, and provisions of the CARES Act, enacted in 2020, which provided income tax benefits related to prior tax years. 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.
Key highlights for the fourth quarter of 2020 and the year ended December 31, 2020 are as follows. Comparisons are to the corresponding periods in the prior year unless otherwise stated.
- The community banking segment sold a pool of PCI loans in the fourth quarter of 2020, recognizing a gain of
$3.5 million ; - The community banking segment repaid borrowings in the fourth quarter of
$37.0 million , which will result in savings of$783,000 in interest expense on an annualized basis, and incurred early repayment charges of$2.2 million . Repayments at the community banking segment and consumer finance segment have resulted in a net decrease of long-term borrowings of$89.1 million during the year ended December 31, 2020; - Consolidated annualized net interest margin for the fourth quarter of 2020 was 4.57 percent, compared to 4.54 percent for the third quarter of 2020 and 5.20 percent for the fourth quarter of 2019. The increase compared to the third quarter of 2020 was due primarily to lower average costs of deposits;
- Average loans outstanding at the community banking segment increased 9.9 percent for the fourth quarter of 2020 and increased 7.4 percent for the year ended December 31, 2020, excluding the effects of acquired loans and loans originated under the Paycheck Protection Program;
- Consolidated provisions for loan losses included reserves based on qualitative adjustments related to the COVID-19 pandemic and resulting economic disruption. These reserves totaled approximately
$8.0 million at December 31, 2020; - Mortgage banking segment net income increased 198 percent for the fourth quarter of 2020 and 185 percent for the year ended December 31, 2020 as a result of higher margins on sales of loans and record volume of mortgage loan originations;
- The consumer finance segment’s net charge-off ratio fell to 1.54 percent for the year ended 2020 from 3.05 percent;
- The consumer finance segment’s average loan yield declined due to growth in higher quality, lower-yielding loans, including marine and recreational vehicle loans;
- In the second quarter of 2020, the community banking segment completed the integration of the systems and processes of Peoples Community Bank;
- In the third quarter of 2020, the community banking segment opened new financial centers in Charlottesville and Downtown Richmond; and
- Also in the third quarter of 2020, the Corporation issued new subordinated notes with aggregate principal of
$20.0 million .
Tom Cherry, President and Chief Executive Officer of C&F Financial Corporation, commented, “Even in the unprecedented times we are experiencing, we delivered record earnings for the fourth quarter and for the year. We also accomplished many of our planned strategic goals for the year, including the purchase and successful integration of Peoples Community Bank into C&F Bank, strong loan growth, restructuring of our balance sheet by repaying certain long-term borrowings, opening two new financial centers and breaking ground on a new corporate headquarters for C&F Finance Company. Despite current headwinds, which include the ongoing pandemic, vaccine distribution challenges, a low interest rate environment and a changing political landscape, and their potential impacts on the economy, we are optimistic as we enter 2021, because of the investments we have made over the last several years and because of the customers, employees and communities which we believe make C&F a strong, stable, strategic and growing financial institution.”
Community Banking Segment. C&F Bank, which comprises the community banking segment, reported net income of
The increase in community banking segment net income for the fourth quarter of 2020 compared to the fourth quarter of 2019 was due primarily to (1) a gain of
The decrease in community banking segment net income for the year ended December 31, 2020 compared to the year ended December 31, 2019 was due primarily to (1) lower average yields on loans; (2) higher provision for loan losses resulting from the COVID-19 pandemic and related economic disruption; (3) higher operating expenses, including the effects of (a) assuming certain operating costs of Peoples Bankshares, Incorporated (Peoples), which was acquired by the Corporation on January 1, 2020, including costs that have been eliminated following the integration of its operations into the Bank’s, (b) opening two new financial centers in the third quarter of 2020 and (c) investing in technology infrastructure to support continued growth; (4) early repayment charges of
Average loans increased
C&F Bank’s total nonperforming assets were
| December 31, 2020 | ||||||
| (Dollars in thousands) | Balance | Exposure | ||||
| Apartments | $ | 82,031 | $ | 96,095 | ||
| Health care1 | 71,636 | 73,596 | ||||
| Commercial real estate - retail2 | 50,455 | 57,009 | ||||
| Restaurants | 13,608 | 14,120 | ||||
| Fitness centers and recreation | 11,487 | 12,206 | ||||
| Hospitality | 5,963 | 31,786 | ||||
| $ | 235,180 | $ | 284,812 | |||
________________________
1 Includes primarily loans secured by medical office buildings and assisted living facilities.
2 Includes loans secured by commercial real estate used or being constructed for use in a retail business, a majority of which are leased to unrelated retail tenants.
Loan modifications offered to assist customers during the pandemic were offered on loans with aggregate balances of
Mortgage Banking Segment. C&F Mortgage Corporation, which comprises the mortgage banking segment, reported net income of
The increase in net income of the mortgage banking segment for both the fourth quarter of 2020 and the year ended December 31, 2020 compared to the same periods in 2019 was due primarily to higher gains on sales of loans and mortgage banking fee income, resulting from higher margins and record loan production, higher mortgage lender services income for providing mortgage origination functions to third parties, and higher net interest income due to higher balances of loans held for sale. Partially offsetting these factors were higher expenses tied to loan production, including compensation expense, loan processing expense and data processing expense. Mortgage loan originations for the mortgage banking segment were
Consumer Finance Segment. C&F Finance Company, which comprises the consumer finance segment, reported net income of
The increase in net income of the consumer finance segment for both the fourth quarter of 2020 and the year ended December 31, 2020 compared to the same periods in 2019 was due primarily to lower provision for loan losses as a result of lower net charge-offs and a decrease in interest expense due to lower average cost of borrowings, partially offset by lower interest income due to lower average yields on loans. The average yield on loans for the fourth quarter of 2020 and the year ended December 31, 2020 was lower compared to the same periods of 2019 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 net charge-off ratio for 2020 decreased to 1.54 percent from 3.05 percent for 2019. The decline reflects a lower number of charge-offs during 2020, 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 C&F Finance Company continuing to purchase higher quality loans as well as borrowers benefitting from the government’s stimulus measures in response to the pandemic during 2020. C&F Finance Company offers payment deferrals at times to non-prime automobile borrowers as a management technique to achieve higher ultimate cash collections. C&F Finance Company offered a higher number of payment deferrals during the first and second quarters of 2020 to borrowers impacted by the pandemic, and as of December 31, 2020, most borrowers who received a deferral had resumed making payments and were current. The average amount deferred on a monthly basis during the fourth quarter of 2020 and the year ended December 31, 2020 was 1.56 percent and 2.93 percent of non-prime automobile loans outstanding, compared to 1.87 percent and 1.90 percent during the same periods in 2019. At December 31, 2020, total delinquent loans, which does not include loans that have been granted a payment deferral, as a percentage of total loans was 3.08 percent, compared to 2.48 percent at September 30, 2020 and 4.17 percent at December 31, 2019. The allowance for loan losses was
Merger Related Expenses. In the fourth quarter of 2019, the Corporation recorded merger related expenses of
Issuance of Subordinated Notes. In the third quarter of 2020, the Corporation completed the issuance of
Capital and Dividends. The Corporation declared cash dividends during the year ended December 31, 2020 totaling
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. As of December 31, 2020, the Corporation has made aggregate common stock repurchases of 7,459 shares for an aggregate amount repurchased of
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 retail bank branches and three 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 provide 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, the anticipated benefits of the early repayment of certain borrowings, future dividend payments, expected impacts of the Corporation’s acquisition of Peoples, strategic business initiatives and the anticipated effects thereof, including new or consolidated facilities, lending under the PPP loan program, margin compression, technology initiatives, asset 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 yields on U.S. Treasury bonds and increases or volatility in mortgage 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, especially related to further and sustained economic impacts of the COVID-19 pandemic, including the steps the Corporation takes in response to COVID-19, the severity and duration of the pandemic, the pace of vaccinations, the pace of 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, and the application of the Basel III capital standards to C&F Bank, (6) the effect of the Economic Growth Regulatory Relief and Consumer Protection Act of 2018 (the Act) and changes in the effect of the Act due to issuance of interpretive regulatory guidance or enactment of corrective or supplemental legislation, (7) 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, (8) the value of securities held in the Corporation’s investment portfolios, (9) the quality or composition of the loan portfolios and the value of the collateral securing those loans, (10) the inventory level and pricing of used automobiles, including sales prices of repossessed vehicles, (11) the level of net charge-offs on loans and the adequacy of our allowance for loan losses, (12) the level of indemnification losses related to mortgage loans sold, (13) demand for loan products, (14) deposit flows, (15) the strength of the Corporation’s counterparties and the economy in general, (16) competition from both banks and non-banks, including competition in the non-prime automobile finance markets, (17) demand for financial services in the Corporation’s market area, (18) reliance on third parties for key services, (19) the commercial and residential real estate markets, (20) demand in the secondary residential mortgage loan markets, (21) the Corporation’s technology initiatives and other strategic initiatives, (22) the Corporation’s branch expansions and consolidations, (23) cyber threats, attacks or events, (24) expansion of C&F Bank’s product offerings, (25) accounting principles, policies and guidelines, and elections by the Corporation thereunder, and (26) the ability of the Corporation and C&F Bank to realize the anticipated benefits of the acquisition of Peoples. 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, 2019, Quarterly Reports on Form 10-Q for the quarters ended June 30, 2020 and September 30, 2020 and other reports filed with the SEC.
C&F Financial Corporation
Selected Financial Information
(dollars in thousands, except for per share data)
| Financial Condition | 12/31/2020 | 12/31/2019 | |||
| (unaudited) | * | ||||
| Interest-bearing deposits in other banks | $ | 68,927 | $ | 144,285 | |
| Investment securities - available for sale, at fair value | 286,389 | 189,733 | |||
| Loans held for sale, at fair value | 214,266 | 90,500 | |||
| Loans, net: | |||||
| Community Banking segment | 1,018,240 | 787,068 | |||
| Mortgage Banking segment | 6,271 | 4,044 | |||
| Consumer Finance segment | 288,739 | 291,206 | |||
| Restricted stock, at cost | 1,636 | 3,257 | |||
| Total assets | 2,086,310 | 1,657,432 | |||
| Deposits | 1,752,173 | 1,291,250 | |||
| Repurchase agreements | 20,455 | 16,360 | |||
| Borrowings | 55,714 | 144,810 | |||
| Total equity | 194,471 | 165,279 | |||
________________________
*Derived from audited consolidated financial statements.
| For The | For The | ||||||||||
| Quarter Ended | Year Ended | ||||||||||
| Results of Operations | 12/31/2020 | 12/31/2019 | 12/31/2020 | 12/31/2019 | |||||||
| (unaudited) | (unaudited) | * | |||||||||
| Interest income | $ | 24,729 | $ | 23,791 | $ | 96,913 | $ | 95,010 | |||
| Interest expense | 2,900 | 3,832 | 13,382 | 14,556 | |||||||
| Provision for loan losses: | |||||||||||
| Community Banking segment | 700 | 250 | 4,600 | 360 | |||||||
| Mortgage Banking segment | 10 | - | 10 | - | |||||||
| Consumer Finance segment | 820 | 2,260 | 6,470 | 8,155 | |||||||
| Noninterest income: | |||||||||||
| Gains on sales of loans | 11,237 | 2,307 | 29,224 | 10,603 | |||||||
| Other | 8,667 | 6,170 | 26,194 | 21,409 | |||||||
| Noninterest expenses: | |||||||||||
| Salaries and employee benefits | 16,730 | 12,069 | 57,668 | 47,201 | |||||||
| Other | 12,712 | 8,422 | 40,982 | 32,818 | |||||||
| Income tax expense | 2,637 | 1,083 | 6,795 | 5,082 | |||||||
| Net income | 8,124 | 4,352 | 22,424 | 18,850 | |||||||
| Net income attributable to C&F Financial Corporation | 8,000 | 4,365 | 22,117 | 18,859 | |||||||
| Earnings per share - basic and diluted | 2.19 | 1.27 | 6.06 | 5.47 | |||||||
| Fully-taxable equivalent (FTE) amounts1 | |||||||||||
| Interest income on loans-FTE | 23,455 | 22,047 | 91,154 | 87,561 | |||||||
| Interest income on securities-FTE | 1,437 | 1,345 | 5,735 | 5,873 | |||||||
| Total interest income-FTE | 24,923 | 23,940 | 97,602 | 95,613 | |||||||
| Net interest income-FTE | 22,023 | 20,108 | 84,220 | 81,057 | |||||||
________________________
* Derived from audited consolidated financial statements.
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 | For The | ||||||||||||||
| Quarter Ended | Year Ended | ||||||||||||||
| Segment Information | 12/31/2020 | 12/31/2019 | 12/31/2020 | 12/31/2019 | |||||||||||
| (unaudited) | (unaudited) | * | |||||||||||||
| Net Income (Loss): | |||||||||||||||
| Community Banking | $ | 3,646 | $ | 2,161 | $ | 5,427 | $ | 9,915 | |||||||
| Mortgage Banking | 2,422 | 814 | 10,736 | 3,773 | |||||||||||
| Consumer Finance | 2,443 | 1,733 | 7,612 | 6,868 | |||||||||||
| Other | (387 | ) | (356 | ) | (1,351 | ) | (1,706 | ) | |||||||
| Mortgage loan originations - Mortgage Banking | 528,748 | 271,701 | 1,772,062 | 944,143 | |||||||||||
| Mortgage loans sold - Mortgage Banking | 587,944 | 279,517 | 1,653,311 | 896,974 | |||||||||||
________________________
* Derived from audited consolidated financial statements.
| Paycheck Protection Loans (PPP) as of December 31, 2020 | ||||
| Number of Loans | Outstanding | |||
| Below | 807 | $ | 15,510 | |
| At least | 308 | 32,794 | ||
| At least | 43 | 14,585 | ||
| 17 | 15,795 | |||
| 1,175 | $ | 78,684 | ||
| For The | For The | ||||||||||
| Quarter Ended | Year Ended | ||||||||||
| Average Balances | 12/31/2020 | 12/31/2019 | 12/31/2020 | 12/31/2019 | |||||||
| (unaudited) | (unaudited) | ||||||||||
| Interest-bearing deposits in other banks | $ | 38,306 | $ | 140,737 | $ | 92,973 | $ | 110,638 | |||
| Investment securities - available for sale, at amortized cost | 272,434 | 188,226 | 238,908 | 200,054 | |||||||
| Loans held for sale, at fair value | 247,174 | 90,796 | 166,048 | 64,921 | |||||||
| Loans: | |||||||||||
| Community Banking segment | 1,039,288 | 792,755 | 995,726 | 779,207 | |||||||
| Mortgage Banking segment | 5,818 | 3,458 | 4,969 | 3,376 | |||||||
| Consumer Finance segment | 311,872 | 315,452 | 307,991 | 307,141 | |||||||
| Restricted stock, at cost | 3,055 | 3,257 | 3,220 | 3,255 | |||||||
| Total earning assets | 1,917,947 | 1,534,681 | 1,809,835 | 1,468,592 | |||||||
| Total assets | 2,068,545 | 1,634,784 | 1,966,299 | 1,565,428 | |||||||
| Time, checking and savings deposits | 1,211,624 | 966,011 | 1,174,884 | 931,422 | |||||||
| Borrowings | 117,091 | 161,407 | 129,358 | 160,327 | |||||||
| Total interest-bearing liabilities | 1,328,715 | 1,127,418 | 1,304,242 | 1,091,749 | |||||||
| Noninterest-bearing demand deposits | 500,028 | 307,945 | 431,789 | 283,505 | |||||||
| Total equity | 182,529 | 161,426 | 178,862 | 156,810 | |||||||
| Asset Quality | 12/31/2020 | 12/31/2019 | ||||
| (unaudited) | * | |||||
| Community Banking | ||||||
| Loans, excluding purchased and affiliate loans | $ | 939,444 | $ | 770,423 | ||
| Purchased performing loans1 | 87,096 | 26,422 | ||||
| Purchased credit impaired loans1 | 6,359 | 705 | ||||
| Total loans | $ | 1,032,899 | $ | 797,550 | ||
| Total nonaccrual loans2 | $ | 2,971 | $ | 1,512 | ||
| Other real estate owned (OREO)3 | 907 | 1,103 | ||||
| Total nonperforming assets | $ | 3,878 | $ | 2,615 | ||
| Accruing loans past due for 90 days or more | $ | 145 | $ | 109 | ||
| Troubled debt restructurings (TDRs)2 | $ | 3,575 | $ | 4,353 | ||
| Allowance for loan losses (ALL) | $ | 15,035 | $ | 10,482 | ||
| Nonperforming assets to loans and OREO | 0.38 | % | 0.33 | % | ||
| ALL to total loans, excluding purchased credit impaired loans4 | 1.46 | % | 1.32 | % | ||
| ALL to total loans, excluding purchased loans and PPP loans | 1.75 | % | 1.36 | % | ||
| ALL to total nonaccrual loans | 506.06 | % | 693.25 | % | ||
| Net charge-offs to average loans | 0.01 | % | 0.04 | % | ||
| Mortgage Banking | ||||||
| Nonaccrual loans | $ | 31 | $ | 372 | ||
| Total Loans | $ | 7,255 | $ | 4,642 | ||
| ALL | $ | 608 | $ | 598 | ||
| Nonperforming loans to total loans | 0.43 | % | 8.01 | % | ||
| ALL to loans | 8.38 | % | 12.88 | % | ||
| Consumer Finance | ||||||
| Nonaccrual loans | $ | 402 | $ | 611 | ||
| Repossessed automobiles available for sale | $ | 291 | $ | 410 | ||
| Accruing loans past due for 90 days or more | $ | - | $ | - | ||
| Total loans | $ | 312,252 | $ | 312,999 | ||
| ALL | $ | 23,513 | $ | 21,793 | ||
| Nonaccrual loans to total loans | 0.13 | % | 0.20 | % | ||
| ALL to total loans | 7.53 | % | 6.96 | % | ||
| Net charge-offs to average total loans | 1.54 | % | 3.05 | % | ||
________________________
* Derived from audited consolidated financial statements.
1 Acquired loans are tracked in two separate categories: “purchased performing” and “purchased credit impaired.” The remaining discount for purchased performing loans was
2 Total nonaccrual loans include nonaccrual TDRs of
3 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 | Year Ended | |||||||||||||
| Other Performance Data | 12/31/2020 | 12/31/2019 | 12/31/2020 | 12/31/2019 | ||||||||||
| (unaudited) | (unaudited) | |||||||||||||
| Annualized return on average assets | 1.57 | % | 1.06 | % | 1.14 | % | 1.20 | % | ||||||
| Annualized return on average equity | 17.80 | % | 10.78 | % | 12.54 | % | 12.02 | % | ||||||
| Annualized net interest margin | 4.57 | % | 5.20 | % | 4.65 | % | 5.52 | % | ||||||
| Dividends declared per share | $ | 0.38 | $ | 0.38 | $ | 1.52 | $ | 1.49 | ||||||
| Weighted average shares outstanding - basic and diluted | 3,653,871 | 3,425,685 | 3,648,696 | 3,450,745 | ||||||||||
| Market Ratios | 12/31/2020 | 12/31/2019 | |||
| (unaudited) | * | ||||
| Market value per share | $ | 37.11 | $ | 55.33 | |
| Book value per share | $ | 52.80 | $ | 48.07 | |
| Price to book value ratio | 0.70 | 1.15 | |||
| Tangible book value per share1 | $ | 45.32 | $ | 43.61 | |
| Price to tangible book value ratio1 | 0.82 | 1.27 | |||
| Price to earnings ratio (ttm) | 6.09 | 10.13 | |||
________________________
* Derived from audited consolidated financial statements.
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 | 12/31/2020 | 12/31/2019 | Requirements3 | |||||
| (unaudited) | * | |||||||
| C&F Financial Corporation1 | ||||||||
| Total capital (to risk-weighted assets) | 15.2 | % | 14.9 | % | 8.0 | % | ||
| Tier 1 capital (to risk-weighted assets) | 12.5 | % | 13.6 | % | 6.0 | % | ||
| Common equity tier 1 capital (to risk-weighted assets) | 10.9 | % | 11.7 | % | 4.5 | % | ||
| Tier 1 capital (to average assets) | 9.6 | % | 11.1 | % | 4.0 | % | ||
| C&F Bank2 | ||||||||
| Total capital (to risk-weighted assets) | 13.8 | % | 14.0 | % | 8.0 | % | ||
| Tier 1 capital (to risk-weighted assets) | 12.5 | % | 12.8 | % | 6.0 | % | ||
| Common equity tier 1 capital (to risk-weighted assets) | 12.5 | % | 12.8 | % | 4.5 | % | ||
| Tier 1 capital (to average assets) | 9.6 | % | 10.3 | % | 4.0 | % | ||
________________________
* Derived from audited consolidated financial statements.
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 December 31, 2020 are estimates and subject to change pending regulatory filings. All ratios at December 31, 2019 are presented as filed.
3 The ratios presented for minimum capital requirements are those to be considered adequately capitalized.
| C&F Financial Corporation | ||||||||||||||||
| Reconciliation of Certain Non-GAAP Financial Measures | ||||||||||||||||
| (dollars in thousands, except for per share data) | ||||||||||||||||
| For The | For The | |||||||||||||||
| Quarter Ended | Year Ended | |||||||||||||||
| 12/31/2020 | 12/31/2019 | 12/31/2020 | 12/31/2019 | |||||||||||||
| Adjusted Net Income and Earnings Per Share | (unaudited) | (unaudited) | * | |||||||||||||
| Net income, as reported | $ | 8,124 | $ | 4,352 | $ | 22,424 | $ | 18,850 | ||||||||
| Sale of PCI loans1 | (2,756 | ) | - | (2,756 | ) | - | ||||||||||
| Early repayment charges2 | 1,721 | - | 1,735 | - | ||||||||||||
| Merger related expenses3 | - | 264 | 1,132 | 653 | ||||||||||||
| Branch consolidation4 | - | - | 222 | - | ||||||||||||
| Change in tax law | - | - | (326 | ) | - | |||||||||||
| Adjusted net income | $ | 7,089 | $ | 4,616 | $ | 22,431 | $ | 19,503 | ||||||||
| Weighted average shares - basic and diluted | 3,653,871 | 3,425,685 | 3,648,696 | 3,450,745 | ||||||||||||
| Earnings per share - basic and diluted, as reported | $ | 2.19 | $ | 1.27 | $ | 6.06 | $ | 5.47 | ||||||||
| Sale of PCI loans | (0.75 | ) | - | (0.76 | ) | - | ||||||||||
| Early repayment charges | 0.47 | - | 0.48 | - | ||||||||||||
| Merger related expenses | - | 0.08 | 0.31 | 0.19 | ||||||||||||
| Branch consolidation | - | - | 0.06 | - | ||||||||||||
| Change in tax law | - | - | (0.09 | ) | - | |||||||||||
| Adjusted earnings per share - basic and diluted | $ | 1.91 | $ | 1.35 | $ | 6.06 | $ | 5.66 | ||||||||
| Adjusted Return on Average Equity (ROE) | ||||||||||||||||
| Average total equity, as reported | $ | 182,529 | $ | 161,426 | $ | 178,862 | $ | 156,810 | ||||||||
| Annualized ROE, as reported | 17.80 | % | 10.78 | % | 12.54 | % | 12.02 | % | ||||||||
| Adjusted annualized ROE | 15.54 | % | 11.44 | % | 12.54 | % | 12.44 | % | ||||||||
| Adjusted Return on Average Assets (ROA) | ||||||||||||||||
| Average assets, as reported | $ | 2,068,545 | $ | 1,634,783 | $ | 1,966,299 | $ | 1,565,428 | ||||||||
| Annualized ROA, as reported | 1.57 | % | 1.06 | % | 1.14 | % | 1.20 | % | ||||||||
| Adjusted annualized ROA | 1.37 | % | 1.13 | % | 1.14 | % | 1.25 | % | ||||||||
| Fully Taxable Equivalent Net Interest Income5 | ||||||||||||||||
| Interest income on loans | $ | 23,385 | $ | 22,022 | $ | 90,992 | $ | 87,519 | ||||||||
| FTE adjustment | 70 | 25 | 162 | 42 | ||||||||||||
| FTE interest income on loans | $ | 23,455 | $ | 22,047 | $ | 91,154 | $ | 87,561 | ||||||||
| Interest income on securities | $ | 1,313 | $ | 1,221 | $ | 5,208 | $ | 5,312 | ||||||||
| FTE adjustment | 124 | 124 | 527 | 561 | ||||||||||||
| FTE interest income on securities | $ | 1,437 | $ | 1,345 | $ | 5,735 | $ | 5,873 | ||||||||
| Total interest income | $ | 24,729 | $ | 23,791 | $ | 96,913 | $ | 95,010 | ||||||||
| FTE adjustment | 194 | 149 | 689 | 603 | ||||||||||||
| FTE interest income | $ | 24,923 | $ | 23,940 | $ | 97,602 | $ | 95,613 | ||||||||
| Net interest income | $ | 21,829 | $ | 19,959 | $ | 83,531 | $ | 80,454 | ||||||||
| FTE adjustment | 194 | 149 | 689 | 603 | ||||||||||||
| FTE net interest income | $ | 22,023 | $ | 20,108 | $ | 84,220 | $ | 81,057 | ||||||||
________________________
* Derived from audited consolidated financial statements.
1 Sale of PCI loans is net of related income taxes of
2 Early repayment charges are net of related income tax benefits of
3 Merger related expenses are net of related income tax benefits of
4 Branch consolidation charges are net of related income tax benefits of
5 Assuming a tax rate of
| 12/31/2020 | 12/31/2019 | ||||
| Tangible Book Value Per Share | (unaudited) | * | |||
| Equity attributable to C&F Financial Corporation | $ | 193,805 | $ | 164,798 | |
| Less goodwill | 25,191 | 14,425 | |||
| Less other intangible assets | 2,291 | 912 | |||
| Tangible equity attributable to C&F Financial Corporation | $ | 166,323 | $ | 149,461 | |
| Shares outstanding | 3,670,301 | 3,438,126 | |||
| Book value per share | $ | 52.80 | $ | 48.07 | |
| Tangible book value per share | $ | 45.32 | $ | 43.61 | |
________________________
* Derived from audited consolidated financial statements.
| Contact: | Jason Long, CFO and Secretary |
| (804) 843-2360 |
FAQ
What was CFFI's net income for the fourth quarter of 2020?
How did CFFI perform compared to the previous year?
What were the annual ROE and ROA for CFFI in 2020?
What factors contributed to CFFI's revenue growth?
What was the overall loan loss provision for CFFI in 2020?
