C&F Financial Corp (CFFI) Announces Q3 and Nine-Month Earnings
Consolidated net income for Q3 2023 was $5.8 million, a decrease of 11.7% compared to Q3 2022.
Consolidated net income for the first nine months of 2023 was $18.7 million, a decrease of 2.1% compared to the same period in 2022.
The community banking segment reported net income of $5.7 million for Q3 and $17.7 million for the first nine months of 2023.
The mortgage banking segment reported a net loss of $5,000 for Q3 and net income of $568,000 for the first nine months of 2023.
On October 26, 2023, C&F Financial Corp (NASDAQ:CFFI) announced its consolidated net income for the third quarter and first nine months of 2023. The corporation reported a consolidated net income of $5.8 million for Q3 2023, representing a decrease of $768,000, or 11.7 percent, compared to Q3 2022. For the first nine months of 2023, the consolidated net income was $18.7 million, a decrease of $405,000, or 2.1 percent, compared to the same period in 2022.
Performance Highlights
The earnings per share for Q3 2023 were $1.71, compared to $1.85 for Q3 2022. For the first nine months of 2023, the earnings per share were $5.41, compared to $5.34 for the same period in 2022. The annualized return on average equity for Q3 2023 was 11.28%, compared to 13.20% for Q3 2022. For the first nine months of 2023, the annualized return on average equity was 12.22%, compared to 12.63% for the same period in 2022.
Segment Performance
The community banking segment reported a net income of $5.7 million for Q3 2023 and $17.7 million for the first nine months of 2023. This represents an increase of $264,000 and $3.9 million, respectively, compared to the same periods in 2022. The mortgage banking segment reported a net loss of $5,000 for Q3 2023 and a net income of $568,000 for the first nine months of 2023. This represents a decrease of $29,000 and $1.1 million, respectively, compared to the same periods in 2022.
Financial Condition
As of September 30, 2023, C&F Financial Corp (NASDAQ:CFFI) had total assets of $2.42 billion, with deposits amounting to $2.03 billion. The corporation's total equity increased by $4.1 million compared to December 31, 2022, primarily due to net income, partially offset by share repurchases, higher unrealized losses in the market value of securities available for sale, dividends paid on the corporation's common stock, and the adoption of the Current Expected Credit Loss (CECL) methodology for estimating credit losses.
Outlook
Despite the decrease in net income for Q3 and the first nine months of 2023, C&F Financial Corp (NASDAQ:CFFI) remains optimistic about its performance. The corporation's diversified business strategy, strong asset quality, and robust loan growth in the community banking segment are expected to continue contributing to its earnings. However, the corporation is closely monitoring economic conditions and their impact on its borrowers' financial positions.
Explore the complete 8-K earnings release (here) from C&F Financial Corp for further details.
This article first appeared on GuruFocus.
