C&F Financial (CFFI) - 2024 Q3 - Quarterly Results

Financial Performance - Consolidated net income for Q3 2024 was $5.4 million, down from $5.8 million in Q3 2023, and $13.9 million for the first nine months of 2024, compared to $18.7 million for the same period in 2023[1][2] - The consumer finance segment reported net income of $311,000 for Q3 2024, down from $682,000 in Q3 2023, primarily due to higher provision for credit losses[14] - Net income for the nine months ended 9/30/2024 was $13,889 million, down 25.5% from $18,658 million for the same period in 2023[35] - Net income for the quarter ended 9/30/2024 was $5,420 million, a decrease of 6.2% compared to $5,777 million for the quarter ended 9/30/2023[45] Loan and Deposit Growth - Community banking segment loans grew by $158.5 million, or 16.6% annualized, and $185.6 million, or 14.9%, compared to December 31, 2023, and September 30, 2023, respectively[4] - Average loans in the consumer finance segment increased by $8.3 million, or 1.8%, for Q3 2024 compared to the same period in 2023[15] - Mortgage banking segment loan originations were $157.0 million for Q3 2024, an increase of $27.3 million, or 21.1%, compared to Q3 2023[5][12] - Total loans reached $1,866,489 million, an increase from $1,701,011 million, representing a growth of 9.71% year-over-year[37] - Deposits increased by $69.8 million, or 4.5% annualized, and $107.5 million, or 5.3%, compared to December 31, 2023, and September 30, 2023, respectively[4] - Deposits increased to $2,135.9 million at September 30, 2024, compared to $2,066.1 million at December 31, 2023[34] Interest Income and Margin - The consolidated annualized net interest margin was 4.13% for Q3 2024, compared to 4.29% for Q3 2023[4] - Interest income for the quarter ended 9/30/2024 was $36,131 million, up 14.4% from $31,686 million for the same period in 2023[35] - Total interest income-FTE for the nine months ended 9/30/2024 was $104,010 million, an increase of 12.5% from $92,424 million in the previous year[35] - Net interest income for the quarter ended 9/30/2024 was $24,975 million, slightly up from $24,712 million in the previous year[36] - Interest income on loans for the quarter ended 9/30/2024 was $33,021 million, an increase of 16.5% from $28,369 million for the same quarter last year[46] Credit Losses and Provisions - The allowance for credit losses in the consumer finance segment was $23.2 million at September 30, 2024, down from $23.6 million at December 31, 2023[16] - The community banking segment recorded provision for credit losses of $700,000 for Q3 2024, compared to $500,000 for the same period in 2023[9] - Provision for credit losses in the Consumer Finance segment increased to $3,000 million for the quarter ended 9/30/2024, compared to $1,550 million in the prior year, reflecting a 93.5% increase[35] - The allowance for credit losses (ACL) for the community banking segment was $17,533 million, up from $16,072 million, indicating a rise of 9.09%[40] Capital and Equity - Total consolidated equity increased by $10.4 million at September 30, 2024, compared to December 31, 2023, due to net income and lower unrealized losses in securities[21] - As of September 30, 2024, C&F Bank was categorized as well capitalized under regulatory requirements, exceeding all required capital ratios[23] - The total risk-based capital ratio for C&F Financial Corporation decreased to 13.8% from 14.8%, remaining above the minimum requirement of 8.0%[44] - Average total equity increased to $222,532 million for the quarter ended 9/30/2024, up from $204,840 million for the same period last year, representing an increase of 10.3%[45] - Tangible equity attributable to C&F Financial Corporation increased to $200,938 million as of 9/30/2024, compared to $190,280 million as of 12/31/2023, marking a growth of 5.3%[47] Shareholder Returns - The Corporation declared a quarterly cash dividend of $0.44 per share for Q3 2024, representing a payout ratio of 26.7% of earnings per share[20] - The Corporation repurchased 60,520 shares for $3.2 million during Q3 2024, and 149,594 shares for $7.3 million in the first nine months of 2024[24] - Shares outstanding decreased to 3,234,363 as of 9/30/2024, down from 3,374,098 as of 12/31/2023[47] Market Performance - The price to earnings ratio (ttm) was reported at 10.30, compared to 9.87 in the previous period, indicating a slight increase in valuation metrics[43] - The market value per share decreased to $58.35 from $68.19, indicating a decline of 14.06% over the period[43]