C&F Financial Corp 10-K Summary (Fiscal Year Ended Dec 31, 1997)
Business Context and Reporting Period
C&F Financial Corporation is a Virginia-based bank holding company incorporated in 1994. Its sole subsidiary is Citizens and Farmers Bank, an independent commercial bank with nine branches serving central Virginia counties. The company also operates three wholly-owned subsidiaries: C&F Title Agency, Inc., C&F Investment Services, Inc., and C&F Mortgage Corporation. The reporting period covers the fiscal year ended December 31, 1997.
Key Financial Metrics
Revenue, Profit, Cash Flow, Margins, Debt, and Liquidity: The filing text does not provide specific numerical values for revenue, net income, cash flow, profit margins, total debt, or liquidity ratios. These figures are incorporated by reference from the 1997 Annual Report to Shareholders (Exhibit 13) and are not present in the provided text.
Market Data: As of March 17, 1998, the aggregate market value of common stock held by non-affiliates was approximately $62,201,958. There were 1,925,625 shares of common stock outstanding.
Asset Composition (Interest Rate Sensitivity): As of December 31, 1997, the company reported the following principal amounts for interest-earning assets and liabilities (in thousands):
- Total Fixed Rate Loans: $62,969
- Total Variable Rate Loans: $94,995
- Total Loans Held for Sale: $24,525
- Total Taxable Securities: $36,354
- Total Tax-Exempt Securities: $40,132
- Total Interest-Bearing Liabilities (Deposits & Borrowings): $205,554
Material Changes and Operational Updates
The filing does not explicitly detail year-over-year percentage changes in financial performance due to the incorporation of financial data by reference. However, the following operational updates are noted:
- Personnel: Total employment was 220 persons (17 part-time) as of December 31, 1997. Brad E. Schwartz was promoted to Senior Vice President and Treasurer in December 1997.
- Properties: The company owns its headquarters and several branch locations. C&F Mortgage Corporation leases eight offices, incurring rental expenses of $244,000 for the year.
- Regulatory: The company filed a Form 8-K on November 25, 1997, to obtain an Exchange Act file number for an application to the NASDAQ system.
Guidance, Risks, and Management Commentary
Market Risk: The primary market risk is interest rate volatility. The company utilizes a simulation model to manage this risk and does not currently hold trading assets or hedging transactions (e.g., swaps or caps). The loan portfolio is concentrated in specific Virginia counties, exposing the company to local economic risks.
Legal Proceedings: There are no material pending legal proceedings.
Accounting Disagreements: The filing incorporates by reference information regarding changes in and disagreements with accountants from a September 30, 1997 Form 10-Q, though the specific nature of the disagreement is not detailed in this text.
Investor Verification Checklist
- Verify specific revenue, net income, and earnings per share figures in the 1997 Annual Report to Shareholders (Exhibit 13), as they are not listed in this 10-K text.
- Review the "Changes in and Disagreements with Accountants" section in the September 30, 1997 Form 10-Q to understand the nature of the referenced accounting dispute.
- Confirm the status of the NASDAQ application mentioned in the November 1997 Form 8-K.
- Assess the concentration risk of the loan portfolio in the defined Virginia counties against local economic conditions.
- Examine the "Five Year Financial Summary" in the Annual Report to determine historical trends in profitability and liquidity.