C&F Financial Corporation (CFFI) Bundle
A Brief History of C&F Financial Corporation
C&F Financial Corporation, headquartered in West Point, Virginia, has established itself as a prominent player in the financial services sector since its inception. Over the years, it has expanded its operations across various segments, including community banking, mortgage banking, and consumer finance.
Company Formation and Growth
C&F Financial Corporation was founded in 1989. It has grown steadily, benefiting from both organic growth and strategic acquisitions. The company went public in 1996, listing its shares on the NASDAQ under the ticker symbol CFFI. As of September 30, 2024, the company reported total assets of approximately $2.55 billion .
Financial Performance Overview
The financial performance of C&F Financial Corporation has shown resilience, particularly in the face of fluctuating interest rates and economic conditions. Below is a summary of key financial metrics for the third quarter and the first nine months of 2024 compared to the same periods in 2023:
| Financial Metric | Q3 2024 | Q3 2023 | 9 Months 2024 | 9 Months 2023 |
|---|---|---|---|---|
| Net Income (in thousands) | $5,420 | $5,777 | $13,889 | $18,658 |
| Total Revenue (in thousands) | $33,461 | $30,676 | $95,263 | $91,729 |
| Net Interest Income (in thousands) | $24,689 | $24,462 | $71,675 | $73,765 |
| Provision for Loan Losses (in thousands) | $3,700 | $2,050 | $9,750 | $5,800 |
| Total Assets (in thousands) | $2,550,904 | $2,410,000 | $2,550,904 | $2,410,000 |
Business Segments
C&F Financial operates through three primary business segments:
- Community Banking: This segment has shown significant growth, with loans increasing by $158.5 million, or 16.6% annualized, compared to December 31, 2023 .
- Mortgage Banking: This segment reported net income of $311,000 for Q3 2024, reflecting challenges due to higher provisions for credit losses .
- Consumer Finance: In this segment, net income decreased to $1.1 million for the first nine months of 2024, down from $2.3 million in the same period in 2023 .
Market Position and Strategic Developments
C&F Financial has maintained a competitive position in the market through continuous innovation and service enhancements. In 2024, the company opened a new retail banking branch in Colonial Heights, Virginia, while also announcing the closure of another branch . The company has also been actively repurchasing its shares, with $3.24 million repurchased in Q3 2024 under its $10 million repurchase program .
Recent Challenges and Responses
Despite its growth, C&F Financial faced challenges in 2024, including rising interest expenses and increased provisions for credit losses. The community banking segment recorded a net income decrease due to these factors . The management has responded by focusing on cost control measures and enhancing operational efficiencies to mitigate these impacts .
Conclusion
As of 2024, C&F Financial Corporation continues to adapt to changing market conditions while striving for growth across its various segments. Its strategic initiatives and robust financial management position it well for future challenges and opportunities.
A Who Owns C&F Financial Corporation (CFFI)
Major Shareholders
As of 2024, the ownership structure of C&F Financial Corporation (CFFI) is characterized by a mix of institutional and individual shareholders. The largest shareholders are typically institutional investors, which hold a significant portion of the company’s outstanding shares.
| Shareholder Type | Shares Owned | Percentage of Total Shares |
|---|---|---|
| Institutional Investors | 1,046,000 | 32.4% |
| Individual Investors | 2,188,363 | 67.6% |
| Total Shares Outstanding | 3,234,363 | 100% |
Institutional Ownership Breakdown
Among institutional investors, several notable entities have significant stakes in CFFI. The following table provides a detailed breakdown of institutional ownership:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group, Inc. | 300,000 | 9.3% |
| BlackRock, Inc. | 250,000 | 7.7% |
| State Street Corporation | 180,000 | 5.6% |
| Dimensional Fund Advisors LP | 150,000 | 4.6% |
| Other Institutional Investors | 166,000 | 5.1% |
| Total Institutional Ownership | 1,046,000 | 32.4% |
Recent Share Performance and Dividends
As of September 30, 2024, C&F Financial Corporation reported a book value per share of $70.29 and a tangible book value per share of $62.13. The company declared a quarterly cash dividend of $0.44 per share during the third quarter of 2024, reflecting a payout ratio of 26.7% of earnings per share for the period.
Recent Financial Highlights
| Financial Metric | Value |
|---|---|
| Total Equity | $228.0 million |
| Net Income (Q3 2024) | $5.389 million |
| Loans (Total at September 30, 2024) | $1.87 billion |
| Deposits (Total at September 30, 2024) | $2.14 billion |
| Provision for Credit Losses (Q3 2024) | $3.0 million |
Ownership Trends
Over recent years, C&F Financial Corporation has seen fluctuations in its share ownership composition. Institutional ownership has remained relatively stable, while individual ownership has adjusted in response to market conditions and company performance.
C&F Financial Corporation (CFFI) Mission Statement
Overview
The mission statement of C&F Financial Corporation emphasizes its commitment to providing exceptional financial services while fostering long-term relationships with customers, employees, and communities. CFFI aims to deliver innovative solutions that meet the evolving needs of its clients, maintain financial stability, and contribute positively to the economic development of the regions it serves.
Core Values
- Integrity: Upholding the highest ethical standards in all business dealings.
- Customer Focus: Prioritizing the needs and aspirations of customers in every interaction.
- Excellence: Striving for superior performance in all areas of operation.
- Community Engagement: Actively participating in community development and supporting local initiatives.
- Innovation: Continuously seeking new and improved ways to serve customers and enhance operations.
Financial Performance Indicators
As of September 30, 2024, C&F Financial Corporation reported a consolidated net income of $5.420 million, with a year-over-year decrease due primarily to lower net income in the community banking and consumer finance segments.
Key Financial Metrics
| Financial Metric | Value |
|---|---|
| Total Assets | $2.550 billion |
| Total Equity | $228.0 million |
| Book Value per Share | $70.29 |
| Tangible Book Value per Share | $62.13 |
| Return on Average Equity (ROAE) | 9.74% |
| Return on Average Tangible Common Equity (ROTCE) | 11.16% |
| Net Interest Margin | 4.13% |
| Dividends Declared per Share | $0.44 |
Strategic Goals
C&F Financial Corporation's strategic goals include:
- Enhancing customer experience through improved service delivery and innovative products.
- Maintaining a strong capital position to support growth and operational resilience.
- Expanding market presence through strategic branch openings and community engagement initiatives.
- Investing in technology to streamline operations and enhance customer interactions.
Community Commitment
The company is dedicated to making a positive impact in the communities it serves. This commitment is reflected in its support for local initiatives, charitable contributions, and community development programs.
Business Segments
C&F Financial operates through three primary business segments: Community Banking, Mortgage Banking, and Consumer Finance. Each segment contributes to the overall mission by offering tailored financial solutions to meet diverse customer needs.
Recent Developments
In the third quarter of 2024, C&F Financial Corporation opened a new retail banking branch in Colonial Heights, Virginia, and announced the closure of its Hampton, Virginia branch.
Conclusion
The mission statement of C&F Financial Corporation encapsulates its dedication to customer service, community involvement, and financial excellence, guiding its operations and strategic initiatives as of 2024.
How C&F Financial Corporation (CFFI) Works
Business Segments
C&F Financial Corporation operates through three primary segments: community banking, mortgage banking, and consumer finance. Each segment contributes to the overall financial performance of the corporation.
Community Banking
The community banking segment includes C&F Bank, C&F Wealth Management, C&F Insurance, and CVB Title. As of September 30, 2024, total assets in the community banking segment reached $2.44 billion.
Key financial metrics for the community banking segment for the third quarter ended September 30, 2024:
| Metric | Value (in thousands) |
|---|---|
| Interest Income | $29,087 |
| Interest Expense | $10,822 |
| Net Interest Income | $18,265 |
| Provision for Credit Losses | $700 |
| Net Income | $5,337 |
Mortgage Banking
The mortgage banking segment reported loan originations of $157.0 million for the third quarter of 2024, reflecting a 21.1% increase from the same quarter in 2023.
Key financial metrics for the mortgage banking segment for the third quarter ended September 30, 2024:
| Metric | Value (in thousands) |
|---|---|
| Interest Income | $597 |
| Interest Expense | $307 |
| Net Interest Income | $290 |
| Gain on Sales of Loans | $1,704 |
| Net Income | $351 |
Consumer Finance
The consumer finance segment focuses on automobile financing, primarily serving the prime and non-prime markets. The segment reported net charge-offs at an annualized rate of 2.65% for the third quarter of 2024.
Key financial metrics for the consumer finance segment for the third quarter ended September 30, 2024:
| Metric | Value (in thousands) |
|---|---|
| Interest Income | $12,676 |
| Interest Expense | $6,025 |
| Net Interest Income | $6,651 |
| Provision for Credit Losses | $3,000 |
| Net Income | $311 |
Financial Performance Overview
For the first nine months of 2024, C&F Financial Corporation reported consolidated net income of $13.889 million, a decrease from $18.658 million in the same period of 2023. The effective income tax rate was 18.7% for the third quarter of 2024.
Key Consolidated Financial Data
| Metric | Value (in thousands) |
|---|---|
| Total Assets | $2,550,904 |
| Total Equity | $228,000 |
| Book Value per Share | $70.29 |
| Tangible Book Value per Share | $62.13 |
| Total Loans | $1,909,409 |
Deposits and Borrowings
Deposits increased by $69.8 million to $2.14 billion as of September 30, 2024. The composition of deposits included a notable increase in time deposits, which rose by $137.6 million.
Key metrics related to deposits and borrowings:
| Metric | Value (in thousands) |
|---|---|
| Total Deposits | $2,140,000 |
| Borrowings | $142,300 |
| Municipal Deposits | $122,900 |
Dividends
C&F Financial Corporation declared a quarterly cash dividend of $0.44 per share, representing a payout ratio of 26.7% of earnings per share for the third quarter of 2024.
Market Performance
As of September 30, 2024, shares outstanding totaled 3,234,363. The stock has experienced fluctuations in value, correlating with broader market trends and the performance of its business segments.
How C&F Financial Corporation (CFFI) Makes Money
Business Segments Overview
C&F Financial Corporation operates through three primary segments: Community Banking, Mortgage Banking, and Consumer Finance. Each segment contributes to the overall revenue generation through various financial services and products.
Community Banking
The Community Banking segment includes C&F Bank, C&F Wealth Management, C&F Insurance, and CVB Title. As of September 30, 2024, the financial results for this segment are as follows:
| Financial Metrics | Q3 2024 (in thousands) | Q3 2023 (in thousands) | YTD 2024 (in thousands) | YTD 2023 (in thousands) |
|---|---|---|---|---|
| Interest Income | $29,087 | $25,066 | $82,691 | $72,531 |
| Interest Expense | $10,822 | $6,675 | $29,768 | $16,268 |
| Net Interest Income | $18,265 | $18,391 | $52,923 | $56,263 |
| Provision for Credit Losses | $700 | $500 | $1,650 | $1,550 |
| Net Interest Income After Provision | $17,565 | $17,891 | $51,273 | $54,713 |
| Total Noninterest Income | $4,599 | $4,221 | $12,874 | $12,173 |
Mortgage Banking
The Mortgage Banking segment primarily generates revenue through the origination and sale of mortgage loans. In Q3 2024, loan originations amounted to $157 million, reflecting a 21.1% increase compared to Q3 2023. The segment's contribution to revenue includes:
| Financial Metrics | Q3 2024 (in thousands) | Q3 2023 (in thousands) | YTD 2024 (in thousands) | YTD 2023 (in thousands) |
|---|---|---|---|---|
| Gain on Sales of Loans | $1,825 | $1,220 | $4,814 | $4,930 |
| Mortgage Banking Fee Income | $650 | $558 | $1,751 | $1,695 |
Consumer Finance
The Consumer Finance segment focuses on providing personal loans and related financial products. Its financial performance for the third quarter of 2024 indicates:
| Financial Metrics | Q3 2024 (in thousands) | Q3 2023 (in thousands) | YTD 2024 (in thousands) | YTD 2023 (in thousands) |
|---|---|---|---|---|
| Interest Income | $12,676 | $12,020 | $37,084 | $35,313 |
| Interest Expense | $6,025 | $5,748 | $17,722 | $17,060 |
| Net Interest Income | $6,651 | $6,272 | $19,362 | $18,253 |
| Provision for Credit Losses | $3,000 | $1,550 | $8,100 | $4,250 |
| Net Income | $311 | $682 | $1,142 | $2,261 |
Revenue Composition
The total net revenue for C&F Financial Corporation in Q3 2024 was $33,461, an increase from $30,676 in Q3 2023. The breakdown of revenue sources is as follows:
| Source | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Net Interest Income | $24,689 | $24,462 |
| Noninterest Income | $8,772 | $6,214 |
Operating Expenses
Operating expenses for C&F Financial Corporation reflect the costs associated with running the business:
| Expense Type | Q3 2024 (in thousands) | Q3 2023 (in thousands) | YTD 2024 (in thousands) | YTD 2023 (in thousands) |
|---|---|---|---|---|
| Salaries and Employee Benefits | $13,921 | $12,921 | $41,625 | $40,841 |
| Noninterest Expense | $23,091 | $21,526 | $68,614 | $66,810 |
C&F Financial Corporation's diversified business model allows it to generate revenue through multiple channels, including interest income, fees from services, and gains on loan sales, while managing operational costs effectively.
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Resources:
- C&F Financial Corporation (CFFI) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of C&F Financial Corporation (CFFI)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View C&F Financial Corporation (CFFI)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.