C&F Financial Corporation Announces 25% Increase in Earnings.WEST POINT, Va.--(BUSINESS WIRE)--Oct. 21, 1998--C&F Financial Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CFFI CFFI Center on Federal Financial Institutions CFFI Common Foreign Function Interface ), the one-bank holding company for Citizens and Farmers Bank of West Point, VA, reported net income of $1,673,000, or $.43 per share, for the quarter ended September September: see month. 30, 1998 and $4,724,000, or $1.21 per share, for the nine months ended September 30, 1998. This represents a 25% increase in net income over the quarter ended September 30, 1997 of $1,334,000 and a 23% increase in earnings per share over the quarter ended September 30, 1997 of $.35 per share. For the nine months ended September 30, 1997, net income increased 27% and earnings per share increased 29%. The increase in earnings per share is attributed to both an increase in net income and the repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. of 204,683 shares of the Corporation's common stock in April 1997. The Company's annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. return on average equity (ROE A fictitious surname used for an unknown or anonymous person or for a hypothetical person in an illustration. A lawsuit is generally named for the persons who are parties to it. ) and annualized return on average assets (ROA ROA See: Return on assets ROA See: Right of accumulation ROA See return on assets (ROA). ) increased to 19.10% and 2.19%, respectively, for the quarter ended September 30, 1998 compared to 17.84% and 2.03%, respectively, for the quarter ended September 30, 1997. Annualized ROE and annualized ROA increased to 18.63% and 2.10%, respectively, for the nine months ended September 30, 1998 compared to 16.14% and 1.94%, respectively, for the nine months ended September 30, 1997. Net interest income increased $285,000 or 9.6%, to $3,248,000 for the third quarter of 1998 from $2,963,000 for the third quarter of 1997. This is largely a result of the 17% increase in the average balance of interest earning assets Earning Assets Any income-earning asset owned by a company. Notes: These assets are generally interest-bearing accounts, bonds, and securities available for sale. See also: Asset, Asset Valuation, Earnings, Net Interest Margin offset by a decrease in the net interest margin to 4.93% for the third quarter of 1998 from 5.23% for the third quarter of 1997. Net interest income increased $1,013,000, or 11.7%, to $9,692,000 for the first nine months of 1998 from $8,679,000 for the first nine months of 1997. This is a result of a 17% increase in the average balance of interest earning assets offset by a decrease in the net interest margin to 5.01% for the first nine months of 1998 from 5.26% for the first nine months 1997. The increase in the average balance of interest earning assets for the quarter and the first nine months of 1998 is attributed to an increase in the average balance of loans and investments at Citizens and Farmers Bank and loans held for sale at C&F Mortgage Corporation (a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of Citizens and Farmers Bank). The decrease in the interest margin is a result of a decrease in the yield on interest earning assets resulting from the lower interest rate environment and an increase in cost of funds Cost of Funds The interest rate paid on an outstanding loan. Notes: Money isn't free! Cost of funds is the cost of borrowing money. See also: Interest Rate Cost of funds Interest rate associated with borrowing money. , mainly attributed to increased borrowings from the Federal Home Loan Bank (FHLB FHLB Federal Home Loan Bank ). Borrowings from the FHLB are used to fund loans originated and subsequently sold by C&F Mortgage Corporation. Loan closings at C&F Mortgage Corporation increased to $133,237,000 for the quarter ended September 30, 1998 compared to $85,806,000 for the third quarter of 1997. For the nine months ended September 30, 1998, loan closings totaled $370,000,000 compared to $199,370,000 for the first nine months of 1997. The increase in production at C&F Mortgage is a result of overall growth and an increase in refinancings attributed to the lower interest rate environment. Other operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. increased $1,146,000, or 58%, to $3,125,000 for the third quarter of 1998 from $1,979,000 for the third quarter of 1997. Other operating income increased $3,559,000, or 78%, to $8,104,000 for the first nine months of 1998 from $4,545,000 for the first nine months of 1997. The increase in other income is mainly attributed to an increase in gain on sale of loans resulting from increased production at C&F Mortgage Corporation. Other operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. increased $789,000 or 26% to $3,838,000 for the third quarter of 1998 from $3,049,000 for the second quarter of 1998. Other operating expenses increased $2,656,000 or 32% to $10,845,000 for the first nine months of 1998 from $8,189,000 for the first nine months of 1997. The increase in other expenses is mainly attributed to increased production at C&F Mortgage Corporation. C&F Financial Corporation's stock trades on the Nasdaq National Market System under the symbol CFFI. The stock closed at a price of $18.50 per share on Tuesday Tuesday: see week. , October October: see month. 20, 1998. At September 30, 1998 the book value of the stock was $9.25 per share, and the Company paid a cash dividend of $.11 per share during the third quarter of 1998. The Company's market makers include Advest, Inc., Scott & Stringfellow Stringfellow is a fictional character, a mutant in the Marvel Comics Universe. His first appearance was in X-Treme X-Men #35. Fictional character biography Stringfellow is a mutant with the ability to cause others' bodies to become super elastic. , Inc. and McKinnon McKinnon can refer to: People
C&F Financial Corporation operates nine retail bank branches located throughout the Williamsburg Williamsburg, historic city (1990 pop. 11,530), seat of James City co., SE Va., on a peninsula between the James and York rivers; settled 1632 as Middle Plantation, laid out and renamed 1699, inc. 1722. to Richmond corridor in Virginia Virginia, state, United States Virginia, state of the south-central United States. It is bordered by the Atlantic Ocean (E), North Carolina and Tennessee (S), Kentucky and West Virginia (W), and Maryland and the District of Columbia (N and NE). through its Citizens and Farmers Bank subsidiary. The company provides mortgage and title services through C&F Mortgage Corporation's eight offices. C&F Investment Services, Inc. provides a comprehensive range of investment services.
Selected Financial Information
(dollars in thousands, except per share data)
Balance Sheets 09/30/98 9/30/97
Investment securities - available
for sale at fair value $ 28,637 $ 22,481
Investment securities - held to
maturity at amortized cost 39,370 50,729
Loans held for sale 47,498 23,491
Loans, net 159,816 151,384
Federal Home Loan Bank stock 1,706 1,062
Total assets 300,836 268,527
Deposits 246,394 229,409
Other borrowings 12,070 5,070
Shareholders' equity $ 35,737 $ 30,694
For The Quarter Ended
Statements of Income /1 09/30/98 09/30/97
Interest income $ 5,756 $ 5,013
Interest expense 2,508 2,050
Provision for loan losses 175 75
Other operating income 3,125 1,979
Other operating expenses 3,838 3,049
Income tax expense 687 484
Net income $ 1,673 $ 1,334
Earnings per common share
- assuming dilution $ .43 $ .35
For the Nine Months Ended
Statements of Income /1 09/30/98 09/30/97
Interest income $ 16,934 $ 14,607
Interest expense 7,242 5,928
Provision for loan losses 425 165
Other operating income 8,104 4,545
Other operating expenses 10,845 8,189
Income tax expense 1,802 1,139
Net income $ 4,724 $ 3,731
Earnings per common share
- assuming dilution $ 1.21 $ .94
For The Quarter Ended
Selected Ratios /1 09/30/98 09/30/97
Book value per share $ 9.25 $ 8.04
Dividends per share $ .11 $ .09
Return on average assets 2.19% 2.03%
Return on average equity 19.10% 17.84%
For The Nine Months Ended
Selected Ratios /1 09/30/98 09/30/97
Book value per share $ 9.25 $ 8.04
Dividends per share $ .32 $ .26
Return on average assets 2.10% 1.94%
Return on average equity 18.63% 16.14%
/1 - Per share data has been adjusted to reflect a 100% stock
dividend in the form of a two-for-one stock split which was paid July
20, 1998.
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