C&f Financial Corporation · NASDAQ:CFFI
C&f Financial — Investor Presentation (August 2022)
31 slides from C&f Financial's investor presentation, Aug 1, 2022
Slide 1: Investor Presentation August 2022
Investor Presentation August 2022
Slide 2: Cautionary Statements
Cautionary Statements Forward - Looking Statements. Certain statements in this presentation may constitute “forward - looking statements” within the meaning of federal securities laws .. These forward - looking statements are based on the beliefs of the Corporation’s management, as well as assumptio
Slide 3: Our Company
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Slide 4: Investment Highlights
Investment Highlights (as of 06/30/2022) $2.33 Total Assets ($B) $162.0 Market Cap ($mil) • Strong community banking funding base with roots in key markets in Virginia • Regional exposure through elite mortgage banking and consumer finance segments • Diverse lines of business with experienced manage
Slide 5: Our Executive Leadership
Our Executive Leadership • President of C&F Bank • 30+ years in financial services industry including leadership experience with the Virginia Bankers Association and PricewaterhouseCoopers • 25+ years in leadership at C&F Thomas F. Cherry President & CEO C&F Financial Corporation Age: 53 • 20+ years
Slide 6: Awards
Awards LEADERSHIP Richmond Times-Dispatch WORK-LIFE FLEXIBILITY
Slide 7: Our Vision and Values
Our Vision and Values “It is our aim to be the premier financial services company in the markets we serve.” 7
Slide 8: Lines of Business
Pag 4 - rT] aL Lines of Business 7
Slide 9: Our Lines of Business
Our Lines of Business Community Banking Mortgage Banking Consumer Finance We conduct mortgage banking activities through C&F Mortgage and its 51% - owned subsidiary, C&F Select LLC. C&F Mortgage provides mortgage loan origination services through 17 locations in Virginia, two in North Carolina, and
Slide 10: Community Banking
Community Banking Community banking segment • Strong community bank franchise led by seasoned community bank leaders • Opened loan production offices in Charlottesville, Fredericksburg, and Hampton Roads over the past 5 years • 30 locations in key Virginia markets • Full - service brokerage firm off
Slide 11: Community banking segment markets
Community banking segment • #1 Deposit Market Share in New Kent and Cumberland counties • 7 of 8 counties projecting faster population growth than Virginia average • 4 of 8 counties projecting faster household income growth than Virginia average Richmond Metro • #1 Deposit Market Share in King Willi
Slide 12: Mortgage Banking
Mortgage Banking Mortgage banking segment • Strong mortgage banking franchise led by seasoned mortgage banking leaders • Division to provide mortgage loan origination as a service • Originations concentrated in purchase financing reduces business cycle impact • 17 locations in Virginia, two in North
Slide 13: Mortgage banking segment: Lender Solutions
Mortgage banking segment Lender Solutions is a growing division of C&F’s mortgage banking segment that provides mortgage loan origination as a service to community financial institutions As of June 30, 2022, Lender Solutions active clientele included 16 community financial institutions $ - $ - $0.4
Slide 14: Consumer Finance
Consumer finance segment Consumer Finance • Unique indirect automobile financing franchise with a regional presence and seasoned management team • Established in 2002 with the acquisition of an indirect, non - prime auto finance company • Over the past several years we have adjusted underwriting cri
Slide 15: Financial Highlights
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Slide 16: Balance Sheet
Balance Sheet Total Assets ($ bil ) 14.7% CAGR 19.3% CAGR 13.3% CAGR Total Deposits ($ bil ) Total Loans HFI, excl PPP * ($ bil ) 16 $1.29 $1.75 $1.91 $2.01 2019 2020 2021 Jun-22 $1.66 $2.09 $2.26 $2.33 2019 2020 2021 Jun-22 * Excludes Paycheck Protection Program (PPP) loans of $0, $77 million, $18
Slide 17: Net Interest Margin (NIM)
Net Interest Margin (NIM) Annualized net interest margin increased for the second quarter of 2022 compared to the first quarter of 2022, due primarily to: • Growth in loans, especially higher yielding auto loans at the consumer finance segment funded by cash and growth in low - cost deposits • An in
Slide 18: Noninterest Income
Gain on sale of loans 66% Mortgage banking fee income 22% Mortgage lender services fee income 11% Other income 1% Interchange Income 37% Service charges on deposit accounts 27% Investment services income 16% Other income, net 20% Noninterest Income Decrease in the second quarter of 2022 compared to
Slide 19: Earnings
Return on Average Equity (ROAE) (%) Earnings Earnings per Share (EPS) ($) Return on Average Assets (ROAA) (%) 19 $5.47 $6.06 $7.95 $4.11 $3.49 2019 2020 2021 Jun-21 Jun-22 12.02 12.54 14.77 15.83 12.36 2019 2020 2021 Jun-21 Jun-22 Return on Average Tangible Common Equity (ROATCE) * (%) * Non - GAAP
Slide 20: Capital
Capital C&F Financial Corporation Capital Ratios (%) C&F Bank Capital Ratios (%) * Non - GAAP financial measure. For non - GAAP financial measures, see reconciliation to most directly comparable GAAP measures in “Appendix – Reconciliation of Non - GAAP Disclosures” The Corporation’s and the Bank’s a
Slide 21: Asset Quality
Asset Quality Allowance for Loan Losses (ALL) (% of Total Loans) Nonaccruals (% of Total Loans) Net Charge - offs (% of Average Loans) 21 0.19 0.29 0.23 0.01 0.20 0.13 0.10 0.11 0.22 0.25 0.21 0.06 2019 2020 2021 Jun-22 Bank Finance Corporation 1.32 1.46 1.43 1.31 6.96 7.53 6.73 5.92 2.95 2.90 2.85
Slide 22: Liquidity
Liquidity Objective : Ensure the continuous availability of funds to satisfy the credit needs of our customers and the demands of our depositors, creditors and investors. Additional sources of liquidity available to the Corporation include cash flows from operations, loan payments and payoffs, depos
Slide 23: Assets composition and yield on earning assets
165 190 802 313 139 502 1,082 437 Cash and Cash Equivalents Securities Loans, HFI, excl PPP (Community Banking) Loans, HFI (Consumer Finance) 2019 2020 2021 Jun-22 Cash and Cash Equivalents 6% Securities 22% Loans, HFS 2% Loans, HFI 63% Non - Earning Assets 7% Assets Composition (% of Total Assets)
Slide 24: Loans, HFI composition
Resi mortgage 15% AD&C 9% CRE 36% C&I 8% Equity Lines 3% Consumer 29% PPP 0% Loans, HFI Composition (% of Total Loans) (Jun - 22) Yield (%) Growth by Segment ($ mil) 24 7.58 6.18 5.86 5.68 5.75 2019 2020 2021 Mar-22 Jun-22 $181 $124 $327 $105 $52 $327 $0 $226 $134 $555 $118 $42 $445 $1 Resi mortgage
Slide 25: Securities composition
U.S. Treasury securities 11% U.S. government agencies and corporations 25% Mortgage - backed securities 39% Obligations of states and political subdivisions 20% Corporate and other debt securities 5% Securities Composition (% of Total Assets) (Jun - 22) Yield (%) Growth by Segment ($ mil) 25 2.89 2.
Slide 26: Funding composition
Total Deposits 86% Borrowings 3% TruPS 1% Equity 8% Other 2% Funding Composition (% of Total Assets) (Jun - 22) Cost of Funds (%) Growth by Segment ($ mil) 26 1.06 0.77 0.44 0.35 0.33 2019 2020 2021 Mar-22 Jun-22 $1,291 $136 $25 $165 $2,006 $67 $25 $196 Total Deposits Borrowings TruPS Equity 2019 20
Slide 27: Deposits composition
Deposits Composition (% of Total Deposits) (Jun - 22) Cost of Deposits (%) Growth by Segment ($ mil) 27 Noninterest bearing 31% Savings and interest bearing 50% Time 19% 3.44 1.64 0.90 0.70 0.66 0.75 0.60 0.30 0.23 0.22 2019 2020 2021 Mar-22 Jun-22 Savings and interest bearing Time Total Deposits $2
Slide 28: Appendix
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Slide 29: Acquisitions
Acquisitions • Headquartered in Powhatan, VA • $390 million in total assets at announcement • 7 community banking offices • The transaction was completed on October 1, 2013 • Headquartered in Montross, VA • $194 million in total assets at announcement • 5 community banking offices • The transaction
Slide 30: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non - GAAP Disclosures 30 ($ thousands) 2019 2020 2021 Jun-21 Jun-22 Return on Average Tangible Common Equity Average total equity, as reported 156,810 $ 178,862 $ 197,204 $ 192,718 $ 202,614 $ Average goodwill (14,425) (25,191) (25,191) (25,191) (25,191) Average other intangible a
Slide 31: Reconciliation of Non-GAAP Disclosures (TCE, TBV)
Reconciliation of Non - GAAP Disclosures 31 ($ thousands, except per share) 2019 2020 2021 Jun-22 Tangible Common Equity (TCE) / Tangible Assets (TA) Total equity, as reported 165,279 $ 194,471 $ 211,024 $ 196,283 $ Goodwill (14,425) (25,191) (25,191) (25,191) Other intangible assets (912) (2,291) (