C&F Financial Corporation Announces Record Earnings.Business Editors WEST POINT, Va.--(BUSINESS WIRE)--April 15, 2003 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 record quarterly net income of $3,264,000, or $.87 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, for the quarter ended March 31, 2003. For the first quarter of 2003, net income increased 80.3% and diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of increased 74.0% over net income and earnings per share, respectively, for the first quarter of 2002. The increase in net income and earnings per share for the first quarter resulted from an increase in the earnings of all of the Corporation's significant business segments. Earnings for the Retail Banking segment increased approximately $256,000 to $1,292,000 for the quarter ended March 31, 2003. The increase in earnings is a result of an increase in average 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 , principally funded by an increase in deposits. The increase in average earning assets is a result of an increase in the average balance of loans by the Retail Banking segment to the Mortgage Banking and the Consumer Finance segments, as well as an increase in loans to third party customers. Earnings for the Mortgage Banking segment increased approximately $633,000 to $1,345,000 for the quarter ended March 31, 2003. The increase in earnings is a result of the continued lower interest rate environment and strong demand for mortgage loans, as well as the October October: see month. 2002 addition of a new loan production office in Fredericksburg, Virginia Fredericksburg is an independent city in the U.S. Commonwealth of Virginia, 50 miles south of Washington, D.C., and 55 miles north of Richmond, Virginia. As of the 2000 census, the city had a population of 19,279. and an increase in loan officers at existing loan production offices. On September September: see month. 1, 2002, the Bank purchased Moore Moore, city (1990 pop. 40,761), Cleveland co., central Okla., a suburb of Oklahoma City; inc. 1887. Its manufactures include lightning- and surge-protection equipment, packaging for foods, and auto parts. Loans, Inc. Moore Loans is a leading regional finance company providing automobile loans in Richmond Richmond, cities, United States Richmond. 1 City (1990 pop. 87,425), Contra Costa co., W Calif., on San Pablo Bay, an inlet of San Francisco Bay; inc. 1905. , Roanoke Roanoke, city, United States Roanoke (rō`ənōk), city (1990 pop. 96,397), independent and in no co., SW Va., on the Roanoke River; settled c.1740, inc. 1882. It is situated between the Blue Ridge and Allegheny Mts. and Hampton Roads Hampton Roads, roadstead, 4 mi (6.4 km) long and 40 ft (12.2 m) deep, SE Va., through which the waters of the James, Nansemond, and Elizabeth rivers pass into Chesapeake Bay. , 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). and portions of eastern Tennessee Tennessee, state, United States Tennessee (tĕn`əsē', tĕn'əsē`), state in the south-central United States. . For the quarter ended March 31, 2003, the Consumer Finance segment, consisting of Moore Loans, earned approximately $571,000. President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , Larry Lar´ry n. 1. Same as Lorry, or Lorrie. Dillon Dillon may refer to: People
stated, "We are extremely pleased with results for this quarter. All of the Corporation's significant business segments have experienced continued growth of their operations and increases in income. While we realize that some of the growth at C&F Mortgage is interest rate driven, we continue to add quality loan officers and staff as evidenced by the opening of our newest mortgage office in Fredericksburg, Virginia. As we have previously stated, the addition of Moore Loans and the growth of C&F Mortgage are consistent with our strategy of diversifying revenue. Moore Loans is proving to be an important part of our overall business strategy and we are pleased with its performance since we acquired it. We are confident that our strategy of diversifying our revenue streams will continue to enhance shareholder value." The Corporation'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). ) were 22.81% and 2.48%, respectively, for the quarter ended March 31, 2003 compared to 15.77% and 1.81%, respectively, for the quarter ended March 31, 2002. C&F Financial Corporation's stock trades on the Nasdaq Stock Market Nasdaq stock market The first electronic stock market listing over 5000 companies. The Nasdaq stock market comprises two separate markets, namely the Nasdaq National Market, which trades large, active securities and the Nasdaq Smallcap Market that trades emerging growth companies. System under the symbol CFFI. The stock closed at a price of $34.98 per share on Monday, April 14, 2003, up 41.9% since year-end 2002. At March 31, 2003, the book value of the stock was $15.97 per share, and the Corporation paid a cash dividend of $.16 per share during the first quarter of 2003. The Corporation's market makers include Advest, Inc., Davenport Davenport, city (1990 pop. 95,333), seat of Scott co., E central Iowa, on the Mississippi River; inc. 1836. Bridges connect it with the Illinois cities of Rock Island and Moline; the three communities and neighboring Bettendorf, Iowa, are known as the Quad Cities. & Company, McKinnon & Company, Inc. and Scott & Stringfellow, Inc. C&F Financial Corporation operates twelve retail bank branches located throughout the Williamsburg to Richmond corridor in Virginia through its Citizens and Farmers Bank subsidiary and its division, Citizens and Commerce Bank. The Corporation provides mortgage and title services through C&F Mortgage Corporation's eleven offices and offers full investment services through its subsidiary C&F Investment Services, Inc. Moore Loans provides automobile loans through its offices in Richmond, Roanoke and Hampton, Virginia Hampton is an independent city in Virginia, and therefore not part of any Virginia county. One of the Seven Cities of Hampton Roads, it is on the southeast end of the Virginia Peninsula, bordering on Hampton Roads and Chesapeake Bay. As of the 2000 U.S. . The statements contained in this press release that are not historical facts constitute "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " as defined by the federal securities laws. These statements may address issues that involve estimates and assumptions made by management, risks and uncertainties, and actual results could differ materially from historical results or those anticipated by such statements. Factors that could have a material adverse effect on the operations and future prospects of the company include, but are not limited to, changes in: interest rates, general economic conditions, demand for residential mortgage loans, legislative/regulatory requirements, monetary and fiscal policies of the U.S. Government, including policies of the U.S. Treasury U.S. Treasury Created in 1798, the United States Department of the Treasury is the government (Cabinet) department responsible for issuing all Treasury bonds, notes and bills. Some of the government branches operating under the U.S. Treasury umbrella include the IRS, U.S. and the Board of Governors of the Federal Reserve System Board of Governors of the Federal Reserve System The managing body of the Federal Reserve System, which sets policies on bank practices and the money supply. , the quality of the loan portfolio, competition, demand for financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. in the company's market area and accounting principles and guidelines guidelines, n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks. . These risks and uncertainties should be considered in evaluating the forward-looking statements, and readers are cautioned not to place undue reliance on such statements, which speak only as of their dates.
Selected Financial Information
(dollars in thousands, except per share data)
Balance Sheets 3/31/03 3/31/02
Investment securities - available
for sale at fair value $ 61,794 $ 58,576
Loans held for sale 89,334 50,937
Loans, net (1) 333,642 240,826
Federal Home Loan Bank stock 2,072 1,690
Total assets 538,458 419,638
Deposits 389,111 353,591
Other borrowings (2) 74,265 10,330
Shareholders' equity 57,281 46,155
Statements of Income For The Quarter Ended
3/31/03 3/31/02
Interest income $ 9,538 $ 6,552
Interest expense 2,315 2,328
Provision for loan losses(3) 538 75
Other operating income 6,844 4,081
Other operating expenses 8,681 5,720
Income tax expense 1,584 700
Net income 3,264 1,810
Earnings per common share - assuming dilution .87 .50
Earnings per common share - basic .90 .51
Interest income on a taxable-
equivalent basis 10,176 6,794
Segment Information For The Quarter Ended
3/31/03 3/31/02
Net income - retail banking $ 1,292 $ 1,036
Net income - mortgage banking 1,345 712
Net income - consumer finance 571 --
Net income - other 56 62
Mortgage loan originations -
mortgage banking 242,043 138,635
Mortgage loans sold - mortgage banking 259,936 156,961
Selected Ratios At/For The Quarter Ended
3/31/03 3/31/02
Book value per share $ 15.97 $ 13.07
Dividends per share $ .16 $ .15
Annualized return on average assets 2.48% 1.81%
Annualized return on average equity 22.81% 15.77%
Net interest margin (fully taxable basis) (4) 6.31% 4.96%
Average Balances For The Quarter Ended
3/31/03 3/31/02
Securities $ 59,035 $ 54,674
Loans 414,221 298,597
Fed funds sold/interest bearing
deposits at other banks 12,814 18,004
Total earning assets 486,070 371,275
Time, checking and savings deposits 330,288 291,713
Borrowings 74,321 13,026
Total interest bearing liabilities 404,609 304,739
Demand deposits 47,686 39,670
Shareholders' equity 57,228 45,910
Capital Ratios 3/31/03 3/31/02
Total Capital (to Risk-Weighted Assets)
Corporation 12.70% 14.72%
Bank 12.26 12.67
Tier 1 Capital (to Risk-Weighted Assets)
Corporation 10.60 13.57
Bank 10.14 11.50
Tier 1 Capital (to Average Tangible Assets)
Corporation 9.02 11.11
Bank 8.62 9.36
Asset Quality
Retail and Mortgage Banking Segments 3/31/03 12/31/02 3/31/02
Non-accrual loans $1,561 $1,656 $ 796
Real estate owned 702 703 --
Total non-performing assets $2,263 $2,359 $ 796
Accruing loans past due for
90 days or more $2,528 $ 69 $ 614
Allowance for loan losses $3,888 $3,765 $3,758
Non-performing assets to loans(a) and
real estate owned .84% .88% .33%
Allowance for loan losses to loans(a)
and real estate owned 1.45 1.40 1.54
Allowance for loan losses to
non-performing assets 171.81 159.60 472.11
(a)Loans above excludes consumer finance loans at Moore Loans.
Consumer Finance Segment 3/31/03 12/31/02 3/31/02
Non-accrual loans $ 813 $ 688 $ --
Accruing loans past due for
90 days or more 206 293 --
Allowance for loan losses 3,067 2,957 --
Dealer reserves 2,148 2,071 --
Non-accrual consumer finance loans to
total consumer finance loans 1.12% 1.02% --
Allowance for loan losses and dealer
reserves to total consumer
finance loans 7.20 7.48 --
Allowance for loan losses and dealer
reserves to non-accrual consumer
finance loans 641.45 730.81 --
Other Data 3/31/03 3/31/02
Shares repurchased 80,000 --
Average price of repurchased shares $28.13 --
Weighted average shares outstanding -
diluted 3,763,867 3,595,822
Weighted average shares outstanding -
basic 3,634,179 3,529,267
Market value per share at period end $34.40 $22.00
Price to book value ratio at period end 2.15 1.68
Price to earnings ratio at period end 9.89 11.00
Notes to Selected Financial Data
(1)Included in loans as of March 31, 2003 are approximately
$69,352,000 in loans attributable to Moore Loans.
(2)Included in borrowings as of March 31, 2003 are $20,000,000 in
advances from the Federal Home Loan Bank, $33,265,000 in draws on a
revolving line of credit from a third party bank, $5,000,000 from a
fixed rate loan from a third party bank and $3,750,000 in subordinated
debt from the previous owners of Moore Loans. These borrowings were
used for the purchase and to fund a portion of the loans outstanding
at Moore Loans.
(3)Included in the provision for loan losses is $463,000 for the
quarter ended 3/31/03 attributable to Moore Loans.
(4)The increase in net interest margin is largely a result of the
purchase of Moore Loans on September 1, 2002. The average yield on
loans at Moore Loans for the first quarter of 2003 was 16.90%.
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