C & F FINANCIAL CORP
For the period ended Jun 30, 2025. Filed Aug 11, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 11, 2025
CFFI$105.12-3.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-06.
0000913341-25-000034
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-11.
0000913341-25-000052
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 181 previous paragraphs and 177 current paragraphs.
116 unchanged; 50 reworded; 7 added; 11 removed; 4 previous and 4 current paragraphs rearranged.
Tables are not compared: 71 previous and 78 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (7)
Current report
On June 6, 2025, the Corporation completed the issuance of $40.0 million in aggregate principal amount of 7.50% fixed-to-floating rate subordinated notes due 2035 (the Notes) in a private placement transaction. The Notes will initially bear interest at a fixed rate of 7.50% for five years and at the then current three-month SOFR plus 388.5 basis points thereafter. The Notes have been structured to qualify as Tier 2 capital of the Corporation under regulatory guidelines for bank holding companies, and a portion of the proceeds were used to refinance the 2030 Notes (as defined below), with the remainder to be used for general corporate purposes, which may include supporting future growth opportunities. Concurrently with the issuance of the Notes, the Corporation repurchased its $20.0 million in aggregate principal amount of 4.875% fixed-to-floating rate subordinated notes due 2030 (the 2030 Notes). The 2030 Notes were repurchased at a price of 100% of the outstanding principal amount, plus accrued but unpaid interest, to but excluding the repurchase date. The 2030 Notes were to move from a fixed rate of 4.875% to a floating rate at the then current three-month SOFR plus 475.5 basis points during the third quarter of 2025.
Current report
by December 31, 2024, where it remained through the second quarter of 2025. The yield on interest-earning assets increased by 9 basis points and 15 basis points for the second quarter and first six months of 2025, respectively, compared to the same periods in 2024. The cost of interest-bearing liabilities decreased by 8 basis points and increased by 4 basis points for the second quarter and first six months of 2025, respectively, compared to the same periods in 2024. Average earning assets increased $167.8 million and $164.0 million for the second quarter and first six months of 2025, respectively, compared to the same periods in 2024. Average interest-bearing liabilities increased $115.5 million and $124.5 million for the second quarter and first six months of 2025, respectively, compared to the same periods in 2024. Average noninterest-bearing demand deposits increased $38.8 million and $26.2 million for the second quarter and first six months of 2025, respectively, compared to the same periods in 2024.
Current report
quarter of 2025 and increased $97.6 million to $826.2 million for the first six months of 2025 compared to the same periods in 2024. The average cost of interest-bearing deposits decreased 10 basis points to 2.30 percent for the second quarter of 2025 compared to the same period in 2024 due primarily to decreases in interest rates paid on time deposits and increased 2 basis points to 2.35 percent for the first six months of 2025 compared to the same period in 2024 due primarily to the continued effects of a shift in the mix of deposits, partially offset by decreases in interest rates paid on time deposits.
Current report
The community banking segment reported net income of $7.1 million and $12.6 million for the second quarter and first six months of 2025, respectively, compared to $4.6 million and $8.6 million for the same periods in 2024 due primarily to:
Current report
The mortgage banking segment reported net income of $985,000 and $1.4 million for the second quarter and first six months of 2025, respectively, compared to $376,000 and $670,000 for the same periods in 2024, due primarily to:
Current report
The consumer finance segment reported net income of $539,000 and $765,000 for the second quarter and first six months of 2025, respectively, compared to $894,000 and $831,000 for the same periods in 2024 due primarily to:
Current report
On June 6, 2025, the Corporation completed the issuance of $40.0 million in aggregate principal amount of 7.50% fixed-to-floating rate subordinated notes due 2035 (the Notes) in a private placement transaction. The Notes will initially bear interest at a fixed rate of 7.50% for five years and at the then current three-month SOFR plus 388.5 basis points thereafter. The Notes have been structured to qualify as Tier 2 capital of the Corporation under regulatory guidelines for bank holding companies, and a portion of the proceeds were used to refinance the 2030 Notes (as defined below), with the remainder to be used for general corporate purposes, which may include supporting future growth opportunities. Concurrently with the issuance of the Notes, the Corporation repurchased its $20.0 million in aggregate principal amount of 4.875% fixed-to-floating rate subordinated notes due 2030 (the 2030 Notes). The 2030 Notes were repurchased at a price of 100% of the outstanding principal amount, plus accrued but unpaid interest, to but excluding the repurchase date. The 2030 Notes were to move from a fixed rate of 4.875% to a floating rate at the then current three-month SOFR plus 475.5 basis points during the third quarter of 2025.
Removed paragraphs (11)
Previous report
Total noninterest expenses decreased $91,000, or less than one percent, in the first quarter of 2025, compared to the same period in 2024, due primarily to fluctuations in deferred compensation liabilities and lower compensation, payroll taxes and employee benefits due primarily to a reduction in headcount through attrition, partially offset by higher marketing and
Previous report
The community banking segment reported net income of $5.4 million for the first quarter of 2025, compared to $4.0 million for the same period in 2024. The increase in community banking segment net income was due primarily to:
Previous report
partially offset by:
Previous report
The mortgage banking segment reported net income of $431,000 for the first quarter of 2025, compared to $294,000 for the same period of 2024, due primarily to:
Previous report
partially offset by:
Previous report
The mortgage banking segment onboarded a new team of loan officers on March 31, 2025 who, based on current mortgage market conditions and forecasts, are projected to generate new mortgage loan originations of approximately $100 to $125 million on an annual basis.
Previous report
The consumer finance segment reported net income of $226,000 for the first quarter of 2025, compared to a net loss of $63,000 for the same period in 2024. The increase in consumer finance segment net income was due primarily to:
Previous report
1 Consumer loans includes provision, charge-offs and recoveries related to demand deposit overdrafts.
Previous report
2 Average loans does not include loans held for sale at the mortgage banking segment.
Previous report
1 Consumer loans includes provision, charge-offs and recoveries related to demand deposit overdrafts.
Previous report
2 Average loans does not include loans held for sale at the mortgage banking segment.
Reworded paragraphs (50)
Previous wording
Consolidated net income increased $2.0 million for the first quarter of 2025 compared to the same period in 2024 due to higher net income at all business segments, primarily the community banking segment. A discussion of the performance of our business segments is included under the heading “Business Segments” in the “Results of Operations” section of this discussion and analysis.
Current wording
Consolidated net income increased $2.7 million and $4.7 million for the second quarter and first six months of 2025 compared to the same period in 2024 due to higher net income at the community banking segment and the mortgage banking segment, partially offset by lower net income at the consumer finance segment. A discussion of the performance of our business segments is included under the heading “Business Segments” in the “Results of Operations” section of this discussion and analysis.
Previous wording
Key factors affecting comparison for the first quarter of 2025 are as follows.
Current wording
Key factors affecting comparison for the second quarter and first six months of 2025 are as follows.
Previous wording
Total equity was $235.3 million at March 31, 2025, compared to $227.0 million at December 31, 2024. Under regulatory capital standards, the Corporation’s tier 1 risk-based capital and total risk-based capital ratios at March 31, 2025 and December 31, 2024 were 11.9 percent and 14.1 percent, respectively. At March 31, 2025, the book value per share of the Corporation’s common stock was $72.51 and tangible book value per share, which is a non-GAAP financial measure, was $64.39, compared to $70.00 and $61.86, respectively, at December 31, 2024.
Current wording
Total equity was $240.9 million at June 30, 2025, compared to $227.0 million at December 31, 2024. Under regulatory capital standards, the Corporation’s tier 1 risk-based capital and total risk-based capital ratios at June 30, 2025 were 12.0 percent and 15.0 percent, respectively, compared to 11.9 percent and 14.1 percent, respectively, at December 31, 2024. At June 30, 2025, the book value per share of the Corporation’s common stock was $74.21 and tangible book value per share, which is a non-GAAP financial measure, was $66.12, compared to $70.00 and $61.86, respectively, at December 31, 2024.
Previous wording
Total equity increased $8.3 million at March 31, 2025 compared to December 31, 2024, due primarily to net income and lower unrealized losses in the market value of securities available for sale, which are recognized as a component of other comprehensive income, partially offset by dividends paid on the Corporation’s common stock. The Corporation’s securities available for sale are fixed income debt securities and their net unrealized loss position is a result of increased market interest rates since they were purchased. The Corporation expects to recover its investments in debt securities through scheduled payments of principal and interest. Unrealized losses are not expected to affect the earnings or regulatory capital of the Corporation or C&F Bank. The accumulated other comprehensive loss related to the Corporation’s securities available for sale, net of deferred income taxes, decreased to $19.1 million at March 31, 2025, compared to $23.7 million at December 31, 2024 due primarily to fluctuations in debt security market interest rates and a decrease in the balance of securities available for sale in an unrealized loss position as a result of maturities, calls and paydowns.
Current wording
Total equity increased $13.9 million at June 30, 2025 compared to December 31, 2024, due primarily to net income and lower unrealized losses in the market value of securities available for sale, which are recognized as a component of other comprehensive income, partially offset by dividends paid on the Corporation’s common stock. The Corporation’s securities available for sale are fixed income debt securities and their net unrealized loss position is a result of increased market interest rates since they were purchased. The Corporation expects to recover its investments in debt securities through scheduled payments of principal and interest. Unrealized losses are not expected to affect the earnings or regulatory capital of the Corporation or C&F Bank. The accumulated other comprehensive loss related to the Corporation’s securities available for sale, net of deferred income taxes, decreased to $19.9 million at June 30, 2025, compared to $23.7 million at December 31, 2024 due primarily to fluctuations in debt security market interest rates and a decrease in the balance of securities available for sale in an unrealized loss position as a result of maturities, calls and paydowns.
Previous wording
The Corporation’s Board of Directors declared a quarterly cash dividend of 46 cents per share during the first quarter of 2025, which was paid on April 1, 2025. This dividend represents a payout ratio of 27.7 percent of earnings per share for the first quarter of 2025. The Board of Directors of the Corporation continually reviews the amount of cash dividends per share and the resulting dividend payout ratio in light of changes in economic conditions, current and future capital levels and requirements and expected future earnings. In making its decision on the payment of dividends on the Corporation’s common stock, the Corporation’s Board of Directors considers operating results, financial condition, capital adequacy, regulatory requirements, shareholder returns, growth expectations and other factors.
Current wording
The Corporation’s Board of Directors declared a quarterly cash dividend of 46 cents per share during the second quarter of 2025, which was paid on July 1, 2025. This dividend represents a payout ratio of 19.4 percent of earnings per share for the second quarter of 2025. The Board of Directors of the Corporation continually reviews the amount of cash dividends per share and the resulting dividend payout ratio in light of changes in economic conditions, current and future capital levels and requirements and expected future earnings. In making its decision on the payment of dividends on the Corporation’s common stock, the Corporation’s Board of Directors considers operating results, financial condition, capital adequacy, regulatory requirements, shareholder returns, growth expectations and other factors.
Previous wording
The Corporation has a share repurchase program that was authorized by the Board of Directors to repurchase up to $5.0 million of the Corporation’s common stock, effective January 1, 2025 through December 31, 2025. During the first quarter of 2025, the Corporation did not make any repurchases of its common stock under this share repurchase program.
Current wording
The Corporation has a share repurchase program that was authorized by the Board of Directors to repurchase up to $5.0 million of the Corporation’s common stock, effective January 1, 2025 through December 31, 2025 (the 2025 Repurchase Program). During the second quarter and first six months of 2025, the Corporation did not make any repurchases of its common stock under the 2025 Repurchase Program.
Previous wording
Goodwill: The Corporation’s goodwill was recognized in connection with past business combinations and is reported at the community banking segment and the consumer finance segment. The Corporation reviews the carrying value of goodwill at least annually or more frequently if certain impairment indicators exist. In testing goodwill for impairment, the Corporation may first consider qualitative factors to determine whether the existence of events or circumstances lead to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of events and circumstances, we conclude that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then no further testing is required and the goodwill of the reporting unit is not impaired. If the Corporation elects to bypass the qualitative assessment or if we conclude that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then the fair value of the reporting unit is compared with its carrying value to determine whether an impairment exists. In the last evaluation of goodwill at the community banking segment and the consumer finance segment, which was the annual evaluation in the fourth quarter of 2024, the Corporation concluded that no impairment existed based on an assessment of qualitative factors.
Current wording
Goodwill: The Corporation’s goodwill was recognized in connection with past business combinations and is reported at the community banking segment and the consumer finance segment. The Corporation reviews the carrying value of goodwill at least annually or more frequently if certain impairment indicators exist. In testing goodwill for impairment, the Corporation may first consider qualitative factors to determine whether the existence of events or circumstances lead to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of events and circumstances, we conclude that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then no further testing is required and the goodwill of the reporting unit is not impaired. If the Corporation elects to bypass the qualitative assessment or if we conclude that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then the fair value of the reporting unit is compared
Previous wording
The following table shows the average balance sheets, the amounts of interest earned on earning assets, with related yields, and interest expense on interest-bearing liabilities, with related rates, for the three months ended March 31, 2025 and 2024. Interest on tax-exempt loans and securities is presented on a taxable-equivalent basis (which converts the income on loans and investments for which no income taxes are paid to the equivalent yield as if income taxes were paid) using the federal corporate income tax rate of 21 percent that was applicable for all periods presented. Average balances of securities available for sale are included at amortized cost. Loans include loans held for sale. Loans placed on a nonaccrual status are included in the balances and are included in the computation of yields, but had no material effect.
Current wording
The following table shows the average balance sheets, the amounts of interest earned on earning assets, with related yields, and interest expense on interest-bearing liabilities, with related rates, for the three and six months ended June 30, 2025 and 2024. Interest on tax-exempt loans and securities is presented on a taxable-equivalent basis (which converts the income on loans and investments for which no income taxes are paid to the equivalent yield as if income taxes were paid) using the federal corporate income tax rate of 21 percent that was applicable for all periods presented. Average balances of securities available for sale are included at amortized cost. Loans include loans held for sale. Loans placed on a nonaccrual status are included in the balances and are included in the computation of yields, but had no material effect.
Previous wording
Interest income and expense are affected by fluctuations in interest rates, by changes in the volume of earning assets and interest-bearing liabilities, and by the interaction of rate and volume factors. The following table shows the direct causes of the period-to-period changes in the components of net interest income on a taxable-equivalent basis. The Corporation calculates the rate and volume variances using a formula prescribed by the SEC. Rate/volume variances, the third element
Current wording
Interest income and expense are affected by fluctuations in interest rates, by changes in the volume of earning assets and interest-bearing liabilities, and by the interaction of rate and volume factors. The following table shows the direct causes of the period-to-period changes in the components of net interest income on a taxable-equivalent basis. The Corporation calculates the rate and volume variances using a formula prescribed by the SEC. Rate/volume variances, the third element in the calculation, are not shown separately in the table, but are allocated to the rate and volume variances in proportion to the absolute dollar amounts of each.
Previous wording
Net interest income, on a taxable-equivalent basis, for the first quarter of 2025 increased to $25.3 million, compared to $23.4 million for the first quarter of 2024, due primarily to an increase in net interest margin and higher average balances of earning assets. Annualized net interest margin increased 7 basis points to 4.16 percent for the first quarter of 2025 compared to the same period of 2024, due primarily to a change in the mix of earning assets and higher yields on earning assets, partially offset by an increase in costs of interest-bearing deposits. The Federal Reserve Bank (FRB) target federal funds interest rate was at an upper limit of 5.50 percent at December 31, 2023 until the FRB began decreasing it in September 2024, decreasing it to 4.50 percent by December 31, 2024, where it remained during the first quarter of 2025. The yield on interest-earning assets increased by 20 basis points for the first quarter of 2025 compared to the same period in 2024. The cost of interest-bearing liabilities increased by 16 basis points for the first quarter of 2025 compared to the same period of 2024. Average earning assets increased $160.0 million for the first quarter of 2025 compared to the same period in 2024. Average interest-bearing liabilities increased $133.5 million for the first quarter of 2025 compared to the same period in 2024. Average noninterest-bearing demand deposits increased $13.5 million for the first quarter of 2025 compared to the same period in 2024.
Current wording
Net interest income, on a taxable-equivalent basis, for the second quarter and first six months of 2025 increased to $26.8 million and $52.1 million, respectively, compared to $24.1 million and $47.6 million for the same periods in 2024 due primarily to an increase in net interest margin and higher average balances of earning assets. Annualized net interest margin increased 15 basis points to 4.27 percent for the second quarter of 2025 compared to the same period of 2024 and increased 11 basis points to 4.21 percent for the first six months of 2025 compared to the same period of 2024, due primarily to an increase in yields and higher balances of earning assets, partially offset by a shift in mix of deposits towards higher cost deposits. The Federal Reserve Bank (FRB) target federal funds interest rate was at an upper limit of 5.50 percent at December 31, 2023 until the FRB began decreasing it in September 2024, decreasing it to an upper limit of 4.50 percent
Previous wording
Average loans, which includes both loans held for investment and loans held for sale, increased $160.2 million to $1.95 billion for the first quarter of 2025 compared to the same period in 2024. Average loans at the community banking segment increased $165.3 million, or 12.7 percent, for the first quarter of 2025, compared to the same period in 2024, due primarily to growth in the construction, commercial real estate, land acquisition and development and builder lines segments of the loan portfolio. Average loans at the consumer finance segment decreased $8.3 million, or 1.8 percent, for the first quarter of 2025, compared to the same period in 2024, due primarily to lower average balances of automobile loans. Average loans at the mortgage banking segment, which consist of loans held for sale, increased $3.3 million, or 18.5 percent, for the first quarter of 2025 compared to the same period in 2024.
Current wording
Average loans, which includes both loans held for investment and loans held for sale, increased $137.2 million to $2.01 billion for the second quarter of 2025 and increased $148.9 million to $1.98 billion for the first six months of 2025, compared to the same periods in 2024. Average loans at the community banking segment increased $139.6 million, or 10.3 percent, for the second quarter of 2025 and increased $152.5 million, or 11.5 percent, for the first six months of 2025 compared to the same periods in 2024 due primarily to growth in the construction, commercial real estate and land acquisition and development segments of the loan portfolio. Average loans at the consumer finance segment decreased $14.1 million, or 2.9 percent, for the second quarter of 2025 and decreased $11.2 million, or 2.4 percent, for the first six months of 2025 compared to the same periods in 2024 due primarily to lower average balances of automobile loans. Average loans at the mortgage banking segment, which consist of loans held for sale, increased $11.7 million, or 34.2 percent, for the second quarter of 2025 and increased $7.6 million, or 29.1 percent, for the first six months of 2025 compared to the same periods in 2024.
Previous wording
The community banking segment average loan yield increased 17 basis points to 5.52 percent for the first quarter of 2025 compared to the same period in 2024, due primarily to a shift in the mix of the loan portfolio to higher yielding loans and renewals of fixed rate loans originated during periods of lower interest rates. The consumer finance segment average loan yield increased 35 basis points to 10.56 percent for the first quarter of 2025, compared to the same period in 2024, due primarily to the effects of the overall higher interest rate environment. The mortgage banking segment average loan yield
Current wording
The community banking segment average loan yield increased 11 basis points to 5.59 percent for the second quarter of 2025 and increased 13 basis points to 5.55 percent for the first six months of 2025 compared to the same periods in 2024 due primarily to a shift in the mix of the loan portfolio towards higher-yielding loans and renewals of fixed rate loans originated during periods of lower interest rates. The consumer finance segment average loan yield increased 8 basis points to 10.49 percent for the second quarter of 2025 and increased 22 basis points to 10.53 percent for the first six months of 2025 compared to the same periods in 2024 due primarily to the portfolio composition shifting towards originations within the past three years, when interest rates were higher, as loans originated prior to that in periods of lower interest rates pay off or mature. The mortgage banking segment average loan yield increased 12 basis points to 6.38 percent for the second quarter of 2025 and increased 14 basis points to 6.44 percent for the first six months of 2025 compared to the same periods in 2024 due to fluctuations in mortgage interest rates.
Previous wording
Average securities available for sale decreased $27.7 million to $458.5 million for the first quarter of 2025, compared to the same period in 2024, due primarily to maturities, calls and paydowns outpacing purchases in the portfolio. The average yield on the securities portfolio on a taxable-equivalent basis increased 37 basis points to 2.92 percent for the first quarter of 2025 compared to the same period in 2024, due primarily to purchases of securities in the overall higher interest rate environment and maturities of lower-yielding securities.
Current wording
Average securities available for sale increased $5.6 million to $462.3 million for the second quarter of 2025 compared to the same period in 2024 due primarily to purchases of mortgage-backed securities outpacing maturities, calls and paydowns. Average securities available for sale decreased $11.0 million to $460.4 million for the first six months of 2025 compared to the same period in 2024 due primarily to maturities, calls and paydowns outpacing purchases in the portfolio. The average yield on the securities portfolio on a taxable-equivalent basis increased 44 basis points to 3.05 percent for the second quarter of 2025 and increased 41 basis points to 2.99 percent for the first six months of 2025 compared to the same periods in 2024 due primarily to purchases of securities within the past three years at higher average yields relative to the average yield of the portfolio as a whole and lower prepayment activity on mortgage-backed securities.
Previous wording
Average interest-bearing deposits in other banks, consisting primarily of excess cash reserves maintained at the FRB, increased $27.4 million to $55.8 million for the first quarter of 2025 compared to the same period of 2024. The average yield on interest-bearing deposits in other banks decreased 2 basis points for the first quarter of 2025, compared to the same period in 2024, due to the decrease in the federal funds interest rate, partially offset by the impacts of the timing of cash items in process, which don’t earn interest until they settle and have a larger effect on yields during periods of lower average balances.
Current wording
Average interest-bearing deposits in other banks, consisting primarily of excess cash reserves maintained at the FRB, increased $25.0 million to $48.2 million for the second quarter of 2025 and increased $26.2 million to $52.0 million for the first six months of 2025 compared to the same periods in 2024. The average yield on interest-bearing deposits in other banks increased 61 basis points for the second quarter of 2025 and increased 26 basis points for the first six months of 2025 compared to the same periods in 2024 due primarily to cash items in process. These items, which do not earn interest until they settle, having a larger effect on yields during periods of lower average balances such as 2024 compared to 2025.
Previous wording
Average savings and money market and interest-bearing demand deposits combined increased $1.3 million to $821.5 million for the first quarter of 2025, compared to the same period in 2024. Average non-interest-bearing demand deposits increased $13.5 million to $545.3 million for the first quarter of 2025 compared to the same period in 2024. Average time deposits increased $116.8 million to $821.9 million for the first quarter of 2025 compared to the same period in 2024. The average cost of interest-bearing deposits increased 15 basis points to 2.40 percent for the first quarter of 2025, compared to the same period in 2024, due primarily to a shift in composition towards time deposits amid the overall higher interest rate environment and increased competition for deposits.
Current wording
Average savings and money market and interest-bearing demand deposits combined increased $39.7 million to $835.4 million for the second quarter of 2025 and increased $20.5 million to $828.5 million for the first six months of 2025 compared to the same periods in 2024. Average non-interest-bearing demand deposits increased $38.8 million to $568.4 million for the second quarter of 2025 and increased $26.2 million to $556.9 million for the first six months of 2025 compared to the same periods in 2024. Average time deposits increased $78.5 million to $830.4 million for the second
Previous wording
Average borrowings increased $15.3 million to $121.8 million for the first quarter of 2025, compared to the same period in 2024, due primarily to fluctuations in repurchase agreements and Federal Home Loan Bank of Atlanta (FHLB) advances. The average cost of borrowings increased 14 basis points for the first quarter of 2025, compared to the same period in 2024, due primarily to a shift in the mix of borrowings.
Current wording
Average borrowings decreased $2.7 million to $123.1 million for the second quarter of 2025 and increased $6.3 million to $122.4 million for the first six months of 2025 compared to the same periods in 2024 due primarily to fluctuations in short-term borrowings, fluctuations in Federal Home Loan Bank of Atlanta (FHLB) advances and higher balances of subordinated debt. The average cost of borrowings increased 45 basis points for the second quarter of 2025 and increased 30 basis points for the first six months of 2025 compared to the same periods in 2024 due primarily to a shift in the mix of borrowings and higher rates paid on subordinated debt.
Previous wording
The Corporation believes that the effects of declining market interest rates, if continued during 2025, could adversely affect its net interest margin in the short term as its assets typically reprice downward more quickly than its deposits and borrowings. The Corporation also believes any such adverse impacts could be somewhat mitigated by renewals of fixed rate loans originated during periods of lower interest rates and purchases of securities available for sale in the overall higher interest rate environment. The interest rate environment has grown increasingly uncertain during 2025 and the ultimate effect of these factors on the Corporation’s net interest margin will also depend on other factors, including the Corporation’s ability to grow loans at the community banking and consumer finance segments, to compete for deposits, and the extent of its reliance on borrowings. The Corporation gives no assurance as to the timing or extent of changes in market interest rates or the impact of those changes or any other factor on the Corporation's ability to compete for loans and deposits or on its net interest margin. If market interest rates were to rise, net interest margin could be positively affected in the short term as the Corporation generally expects its assets to reprice upward more quickly than its deposits and borrowings.
Current wording
The Corporation believes that the effects of declining market interest rates could adversely affect its net interest margin in the short term as its assets typically reprice downward more quickly than its deposits and borrowings. The majority of the Corporation’s time deposits have repriced and further declines in cost of deposits are unlikely unless there are further decreases in market interest rates or shifts in the mix of deposits. The Corporation also believes any such adverse impacts could be somewhat mitigated by renewals of fixed rate loans originated during periods of lower interest rates and purchases of securities available for sale with higher interest rates. The interest rate environment has grown increasingly uncertain during 2025 and the ultimate effect of these factors on the Corporation’s net interest margin will also depend on other factors, including the Corporation’s ability to grow loans at the community banking and consumer finance segments, to compete for deposits, and the extent of its reliance on borrowings. The Corporation gives no assurance as to the timing or extent of changes in market interest rates or the impact of those changes or any other factor on the Corporation's ability to compete for loans and deposits or on its net interest margin. If market interest rates were to rise, net interest margin could be positively affected in the short term as the Corporation generally expects its assets to reprice upward more quickly than its deposits and borrowings.
Previous wording
Total noninterest income increased $81,000, or 1.1 percent, for the first quarter of 2025, compared to the same period of 2024, due primarily to higher volume of mortgage loan production which resulted in higher gains on sales of loans and higher mortgage banking fee income, and higher other service charges, partially offset by fluctuations in unrealized gains and losses on investments held in the rabbi trust.
Current wording
Total noninterest income increased $2.5 million, or 34.5 percent, for the second quarter of 2025 and increased $2.6 million, or 17.6 percent, for the first six months of 2025 compared to the same periods in 2024 due primarily to higher volume of mortgage loan production which resulted in higher gains on sales of loans and higher mortgage banking fee income, fluctuations in unrealized gains and losses on investments held in the rabbi trust and higher mortgage lender services income.
Previous wording
advertising expenses related to the strategic marketing initiative that began in the second half of 2024 and a lower net reversal of provision for indemnifications.
Current wording
Total noninterest expenses increased $2.3 million, or 10.1 percent, in the second quarter of 2025 and increased $2.2 million, or 4.8 percent, in the first six months of 2025 compared to the same periods in 2024 due primarily to fluctuations in deferred compensation liabilities, higher marketing and advertising expenses related to the strategic marketing initiative that began in the second half of 2024 and a lower net reversal of provision for indemnifications.
Previous wording
The Corporation’s consolidated effective income tax rate was 17.3 percent for the first quarter of 2025, an increase compared to 14.1 percent for the same period in 2024 due primarily to a lower share of income at the community banking segment, which is primarily not subject to state income taxes.
Current wording
The Corporation’s consolidated effective income tax rate was 19.3 percent and 18.5 percent for the second quarter and first six months of 2025, respectively, compared to 19.2 percent and 17.2 percent for the same periods in 2024 due primarily to a higher share of income at the mortgage banking segment, which is subject to state income taxes.
Previous wording
Net interest income for the community banking segment increased by $1.6 million to $18.8 million for the first quarter of 2025, compared to the same period in 2024 due primarily to higher average balances of earning assets and an increase in net interest margin. Average interest-earning asset yields were higher for the first quarter of 2025, compared to the same period of 2024, due primarily to a shift in the mix of the loan portfolio to higher yielding loans, renewals of fixed rate loans originated during periods of lower interest rates, purchases of securities in the overall higher interest rate environment and maturities of lower-yielding securities. This increase was partially offset by an increase in the average costs of interest-bearing deposits for the first quarter of 2025, compared to the same period of 2024, due primarily to the continued effects of a shift in the mix of deposits with customers seeking higher yielding opportunities as a result of higher interest rates paid on time deposits. Interest income allocated to the community banking segment includes interest income on loans to the consumer finance and mortgage banking segments. These transactions are eliminated to reach consolidated totals.
Current wording
Net interest income for the community banking segment increased by $2.9 million to $20.3 million for the second quarter of 2025 and increased $4.4 million to $39.1 million for the first six months of 2025 compared to the same periods in 2024 due primarily to an increase in net interest margin and higher average balances of earning assets. Average interest-earning asset yields were higher for the second quarter and first six months of 2025 compared to the same periods in 2024 due primarily to a shift in the mix of the loan portfolio towards higher-yielding loans, renewals of fixed rate loans originated during periods of lower interest rates and purchases of securities available for sale with higher interest rates. The average cost of interest-bearing liabilities were lower for the second quarter of 2025 compared to the same period in 2024 due primarily to decreases in interest rates paid on time deposits and were higher for the first six months of 2025 compared to the same period in 2024 due primarily to the continued effects of a shift in the mix of deposits, partially offset by decreases in interest rates paid on time deposits. Interest income allocated to the community banking segment includes interest income on loans to the consumer finance and mortgage banking segments. These transactions are eliminated to reach consolidated totals.
Previous wording
The community banking segment recorded $100,000 in provision for credit losses for the first quarter of 2025, compared to $500,000 for the same period of 2024, due primarily to lower loan growth. Noninterest income increased for the first quarter of 2025, compared to the same period in 2024, due primarily to higher other service charges and fees and higher investment income from other equity interests, partially offset by lower service charges on deposit accounts. Noninterest expenses increased for the first quarter of 2025, compared to the same period in 2024, due primarily to higher marketing and advertising expenses and data processing, partially offset by lower salaries and employee benefits .
Current wording
The community banking segment recorded net reversals of provision for credit losses of $300,000 and $200,000 for the second quarter and first six months of 2025, respectively, due primarily to the resolution of a nonperforming commercial real estate loan during the second quarter of 2025 that had carried a specific reserve and growth in loans with shorter expected lives, which resulted in lower estimated losses over the life of the loans, partially offset by growth in the loan portfolio and changes in the forecast of key credit loss model assumptions, compared to provision for credit losses of $450,000 and $950,000 for the same periods in 2024. Noninterest income increased for the second quarter and first six months of 2025 compared to the same periods in 2024 due primarily to higher other service charges and fees, partially offset by lower service charges on deposit accounts. Noninterest expenses increased for the second quarter and first six months of 2025 compared to the same periods in 2024 due primarily to higher marketing and advertising expenses and higher salaries and employee benefits.
Previous wording
Despite the sustained elevated level of mortgage interest rates, higher home prices and low levels of inventory, mortgage banking segment loan originations increased 20.6 percent for the first quarter of 2025, compared to the same period in 2024. Gains on sales of loans, while driven in part by mortgage loan originations, also includes the effects of changes in locked loan commitments, which reflect the volume of mortgage loan applications that are in process and have not closed. Lock-adjusted originations for the mortgage banking segment increased 18.2 percent for the first quarter of 2025 compared to the same period in 2024. Locked loan commitments were $71.8 million at March 31, 2025 compared to $39.3 million and $55.8 million at December 31, 2024 and March 31, 2024, respectively. Mortgage loan segment originations include originations of loans sold to the community banking segment, at prices similar to those paid by third-party investors. All interest expense at the mortgage banking segment is on variable rate borrowings from the community banking segment. These transactions are eliminated to reach consolidated totals.
Current wording
Despite the sustained elevated level of mortgage interest rates, higher home prices and low levels of inventory, mortgage banking segment loan originations increased 46.2 percent and 36.2 percent for the second quarter and first six months of 2025, respectively, compared to the same periods in 2024. Gains on sales of loans, while driven in part by mortgage loan originations, also includes the effects of changes in locked loan commitments, which reflect the volume of mortgage loan applications that are in process and have not closed. Lock-adjusted originations for the mortgage banking segment increased 33.3 percent and 26.6 percent for the second quarter and first six months of 2025, respectively, compared to the same periods in 2024. Locked loan commitments were $56.4 million at June 30, 2025 compared to $39.3 million and $60.3 million at December 31, 2024 and June 30, 2024, respectively. Mortgage banking segment loan originations include originations of loans sold to the community banking segment, at prices similar to those paid by third-party investors. All interest expense at the mortgage banking segment is from variable rate borrowings from the community banking segment. These transactions are eliminated to reach consolidated totals.
Previous wording
Through the Lender Solutions division of the mortgage banking segment, mortgage lender services fee income is derived from providing mortgage origination functions to third-party mortgage lenders for a fee. Mortgage lender services fee income increased for the first quarter of 2025, compared to the same period in 2024, due primarily to an increase in fees and the types of services provided.
Current wording
Through the Lender Solutions division of the mortgage banking segment, mortgage lender services fee income is derived from providing mortgage origination functions to third-party mortgage lenders for a fee. Mortgage lender services fee income increased for the second quarter and first six months of 2025 compared to the same periods in 2024 due primarily to increased mortgage loan volume in the industry and an increase in fees and the types of services provided.
Previous wording
During the first quarter of 2025, the mortgage banking segment recorded a reversal of provision for indemnification losses of $25,000 compared to a reversal of provision for indemnification losses of $140,000 for the first quarter of 2024. The release of indemnification reserves in 2025 and 2024 was due primarily to lower volume of mortgage loan originations in recent years, improvement in the mortgage banking segment’s assessment of borrower payment performance and other factors affecting expected losses on mortgage loans sold in the secondary market, such as time since origination. Management believes that the indemnification reserve is sufficient to absorb losses related to loans that have been sold in the secondary market.
Current wording
During the second quarter and first six months of 2025, the mortgage banking segment recorded a reversal of provision for indemnification losses of $35,000 and $60,000, respectively, compared to a reversal of provision for indemnification losses of $135,000 and $275,000 for the same periods in 2024. The release of indemnification reserves in 2025 and 2024 was due primarily to lower volume of mortgage loan originations in recent years, improvement in the mortgage banking segment’s assessment of borrower payment performance and other factors affecting expected losses on mortgage loans sold in the secondary market, such as time since origination. The releases in 2025 decreased compared to the same periods in 2024 due primarily to the increased mortgage loan originations in 2025 compared to 2024. Management believes that the indemnification reserve is sufficient to absorb losses related to loans that have been sold in the secondary market.
Previous wording
Net interest income for the consumer finance segment increased by $219,000 to $6.4 million for the first quarter of 2025, compared to the same period in 2024 due primarily to higher net interest margin, partially offset by lower average balances of loans. Average loans decreased $8.3 million, or 1.8 percent, for the first quarter of 2025, compared to the same period in 2024. All interest expense at the consumer finance segment is on fixed and variable rate borrowings from the community banking segment. These transactions are eliminated to reach consolidated totals.
Current wording
Net interest income for the consumer finance segment decreased by $81,000 to $6.4 million for the second quarter of 2025 compared to the same period in 2024 due primarily to lower average balances of loans, partially offset by higher net interest margin and increased by $138,000 to $12.8 million for the first six months of 2025 compared to the same period in 2024 due primarily to higher net interest margin, partially offset by lower average balances of loans. Average loans decreased $14.1 million, or 2.9 percent, for the second quarter of 2025 and decreased $11.2 million, or 2.4 percent, for the first six months of 2025 compared to the same periods in 2024. All interest expense at the consumer finance segment is from fixed and variable rate borrowings from the community banking segment. These transactions are eliminated to reach consolidated totals.
Previous wording
The consumer finance segment recorded $2.9 million in provision for credit losses for the first quarter of 2025, compared to $3.0 million for the same period of 2024 due primarily to lower average loan balances, partially offset by an increase in net charge-offs. Net charge-offs increased due primarily to an increase in delinquent loans, repossessions and the average
Current wording
The consumer finance segment recorded $2.4 million and $5.3 million in provision for credit losses for the second quarter and first six months of 2025, respectively, due primarily to an increase in net charge-offs, partially offset by lower average loan balances, compared to $2.1 million and $5.1 million for the same periods in 2024. Net charge-offs increased due
Previous wording
amount charged-off when a loan was uncollectable. If loan performance deteriorates, resulting in further elevated delinquencies or net charge-offs, the provision for credit losses may increase in future periods.
Current wording
primarily to an increase in delinquent loans, repossessions and the average amount charged-off when a loan was uncollectable. If loan performance deteriorates, resulting in further elevated delinquencies or net charge-offs, the provision for credit losses may increase in future periods.
Previous wording
Loans are required to be measured at amortized cost and to be presented at the net amount expected to be collected. Credit losses on available for sale debt securities are accounted for as an allowance for credit losses, which is a valuation account that is deducted from the amortized cost basis of the financial asset to present the net carrying value and the amount expected to be collected on the financial asset. Off balance sheet credit exposures, including loan commitments, are not recorded on balance sheet, but expected credit losses arising from off balance sheet credit exposures are recorded as a reserve for unfunded commitments and reported in Other Liabilities. The following table presents the Corporation’s reserve for unfunded commitments for the periods indicated.
Current wording
Loans are required to be measured at amortized cost and to be presented at the net amount expected to be collected. Credit losses on available for sale debt securities are accounted for as an allowance for credit losses, which is a valuation account that is deducted from the amortized cost basis of the financial asset to present the net carrying value and the amount expected to be collected on the financial asset. Off balance sheet credit exposures, including loan commitments, are not recorded on balance sheet, but expected credit losses arising from off balance sheet credit exposures are recorded
Previous wording
The community banking segment’s nonaccrual loans were $1.2 million at March 31, 2025 compared to $333,000 at December 31, 2024. The increase in nonaccrual loans compared to December 31, 2024 is due primarily to the downgrade
Current wording
The community banking segment’s nonaccrual loans were $1.1 million at June 30, 2025 compared to $333,000 at December 31, 2024. The increase in nonaccrual loans compared to December 31, 2024 is due primarily to the downgrade
Previous wording
of one residential mortgage relationship in the first quarter of 2025. The community banking segment recorded $100,000 in provision for credit losses for the first quarter of 2025, compared to $500,000 for the same period of 2024. At March 31, 2025, the allowance for credit losses increased to $17.5 million, compared to an allowance for credit losses of $17.4 million at December 31, 2024, due primarily to growth in the loan portfolio and increased macroeconomic uncertainties. The allowance for credit losses as a percentage of total loans decreased to 1.18 percent at March 31, 2025 from 1.20 percent at December 31, 2024, due primarily to growth in loans with shorter expected lives, which resulted in lower estimated losses over the life of the loan. Management believes that the level of the allowance for credit losses is adequate to reflect the net amount expected to be collected.
Current wording
of one residential mortgage relationship in the first quarter of 2025. The community banking segment recorded net reversals of provision for credit losses of $300,000 and $200,000 for the second quarter and first six months of 2025, respectively, compared to provision for credit losses of $450,000 and $950,000 for the same periods in 2024. At June 30, 2025, the allowance for credit losses decreased to $17.2 million compared to an allowance for credit losses of $17.4 million at December 31, 2024. The allowance for credit losses as a percentage of total loans decreased to 1.12 percent at June 30, 2025 from 1.20 percent at December 31, 2024. These decreases are due primarily to the resolution of a nonperforming commercial real estate loan that had carried a specific reserve of $657,000 and growth in loans with shorter expected lives, which resulted in lower estimated losses over the life of the loans, partially offset by growth in the loan portfolio and changes in the forecast of key credit loss model assumptions. Management believes that the level of the allowance for credit losses is adequate to reflect the net amount expected to be collected.
Previous wording
as other assets and consist only of vehicles the Corporation has the legal right to sell. Prior to the reclassification from loans to repossessed vehicles, the difference between the carrying amount of each loan and the fair value of each vehicle (i.e. the deficiency) is charged against the allowance for credit losses. At March 31, 2025, repossessed vehicles available for sale totaled $976,000 compared to $779,000 at December 31, 2024.
Current wording
Nonaccrual loans at the consumer finance segment were $697,000 at June 30, 2025 compared to $614,000 at December 31, 2024. Nonaccrual consumer finance loans remain low relative to the allowance for credit losses and the total consumer finance loan portfolio because the consumer finance segment generally initiates repossession of loan collateral once a loan becomes more than 60 days delinquent. Repossessed vehicles of the consumer finance segment are classified as other assets and consist only of vehicles the Corporation has the legal right to sell. Prior to the reclassification from loans to repossessed vehicles, the difference between the carrying amount of each loan and the fair value of each vehicle (i.e. the deficiency) is charged against the allowance for credit losses. At June 30, 2025, repossessed vehicles available for sale totaled $925,000 compared to $779,000 at December 31, 2024.
Previous wording
The consumer finance segment experienced net charge-offs at an annualized rate of 2.64 percent of average total loans for the first quarter of 2025, compared to 2.54 percent for the same period of 2024, due primarily to an increase in the number of delinquent loans, the number of repossessions and the average amount charged-off when a loan was uncollectable. At March 31, 2025, total delinquent loans as a percentage of total loans was 3.05 percent compared to 3.90 percent at December 31, 2024 and 2.78 percent at March 31, 2024. The allowance for credit losses was $22.5 million at March 31, 2025 and $22.7 million at December 31, 2024. The allowance for credit losses as a percentage of total loans increased to 4.88 percent at March 31, 2025, compared to 4.86 percent at December 31, 2024.
Current wording
The consumer finance segment experienced net charge-offs at an annualized rate of 2.42 percent of average total loans for the first six months of 2025 compared to 2.21 percent for the same period of 2024 due primarily to an increase in delinquent loans, repossessions and the average amount charged-off when a loan was uncollectable. At June 30, 2025, total delinquent loans as a percentage of total loans was 3.81 percent compared to 3.90 percent at December 31, 2024 and 3.51 percent at June 30, 2024. The allowance for credit losses was $22.4 million at June 30, 2025 and $22.7 million at December 31, 2024. The allowance for credit losses as a percentage of total loans decreased to 4.85 percent at June 30, 2025, compared to 4.86 percent at December 31, 2024.
Previous wording
The consumer finance segment at times offers payment deferrals to borrowers as a portfolio management technique to achieve higher ultimate cash collections on select loan accounts. A significant reliance on deferrals as a means of managing collections may result in a lengthening of the loss confirmation period, which would increase expectations of credit losses inherent in the portfolio. Average amounts of payment deferrals of automobile loans on a monthly basis, which are not included in delinquent loans, were 1.75 percent, 1.62 percent and 2.11 percent as a percentage of average automobile loans outstanding for the first quarter of 2025, the first quarter of 2024 and the fourth quarter of 2024, respectively.
Current wording
The consumer finance segment at times offers payment deferrals to borrowers as a portfolio management technique to achieve higher ultimate cash collections on select loan accounts. A significant reliance on deferrals as a means of managing collections may result in a lengthening of the loss confirmation period, which would increase expectations of credit losses inherent in the portfolio. Average amounts of payment deferrals of automobile loans on a monthly basis, which are not included in delinquent loans, were 1.73 percent and 1.74 percent of average automobile loans outstanding during the second quarter and first six months of 2025, respectively, compared to 1.58 percent and 1.60 percent during the same periods during 2024.
Previous wording
The consumer finance segment is an indirect lender that provides automobile financing through lending programs that are designed to serve customers in both the “prime” and “non-prime” markets, including those who may have limited access to traditional automobile financing due to having experienced prior credit difficulties. The preferred automobile is a later model, low mileage used vehicle because the value of new vehicles typically depreciates rapidly. In addition to automobile financing, marine and RV loan contracts are also purchased on an indirect basis through a referral program administered by a third party. The marine and RV loan contracts are for “prime” loans averaging less than $50,000 made to individuals with higher credit scores.
Current wording
model, low mileage used vehicle because the value of new vehicles typically depreciates rapidly. In addition to automobile financing, marine and RV loan contracts are also purchased on an indirect basis through a referral program administered by a third party. The marine and RV loan contracts are for “prime” loans averaging less than $50,000 made to individuals with higher credit scores.
Previous wording
At March 31, 2025, the Corporation had total assets of $2.6 billion, an increase of $49.2 million since December 31, 2024. The increase was attributable primarily to growth in loans held for investment, available for sale securities, interest-bearing deposits in other banks and loans held for sale, funded by growth in deposits. The significant components of the Corporation’s Consolidated Balance Sheets are discussed below.
Current wording
At June 30, 2025, the Corporation had total assets of $2.7 billion, an increase of $123.0 million since December 31, 2024. The increase was attributable primarily to growth in loans held for investment, loans held for sale, available for sale securities and interest-bearing deposits in other banks, funded by growth in deposits and borrowings. The significant components of the Corporation’s Consolidated Balance Sheets are discussed below.
Previous wording
During the first quarter of 2025, loans held for investment increased $22.9 million to $1.94 billion at March 31, 2025 due primarily to growth in commercial real estate loans, builder lines and equity lines at the community banking segment, partially offset by a decrease in commercial real estate construction loans at the community banking segment and a decrease in loans at the consumer finance segment.
Current wording
During the second quarter of 2025, loans held for investment increased $71.8 million to $1.95 billion at June 30, 2025 due primarily to growth in commercial real estate, construction and builder lines loans at the community banking segment, partially offset by a decrease in loans at the consumer finance segment.
Previous wording
During the first quarter of 2025, securities available for sale increased $12.9 million to $431.5 million at March 31, 2025 due primarily to increases in mortgage-backed securities offset by decreases in U.S. treasury securities. Net unrealized losses in the market value of securities available for sale decreased to $24.2 million at March 31, 2025, compared to $30.0 million at December 31, 2024.
Current wording
During the first six months of 2025, securities available for sale increased $15.9 million to $434.5 million at June 30, 2025 due primarily to an increase in mortgage-backed securities, partially offset by a decrease in U.S. treasury securities. Net unrealized losses in the market value of securities available for sale decreased to $25.2 million at June 30, 2025 compared to $30.0 million at December 31, 2024.
Previous wording
The following table presents additional information pertaining to the composition of the securities portfolio at amortized cost, by the earlier of contractual maturity or expected maturity. Expected maturities will differ from contractual maturities because borrowers may have the right to prepay obligations with or without call or prepayment penalties. The total effective duration of the investment portfolio is 3.9 years as of March 31, 2025.
Current wording
The following table presents additional information pertaining to the composition of the securities portfolio at amortized cost, by the earlier of contractual maturity or expected maturity. Expected maturities will differ from contractual maturities because borrowers may have the right to prepay obligations with or without call or prepayment penalties. The total effective duration of the investment portfolio is 4.0 years as of June 30, 2025.
Previous wording
During the first quarter of 2025, deposits increased $45.8 million to $2.22 billion at March 31, 2025. Noninterest bearing demand deposits increased $53.6 million, savings, money markets and interest-bearing demand deposits decreased $17.0 million and time deposits increased $9.2 million during the same period. The decrease in savings, money market and interest-bearing demand deposits was due in part to a shift in balances toward time deposits amid a higher interest rate environment and to seasonal factors related to municipal deposits, which tend to increase with tax collections primarily in the fourth quarter of each year and decline with spending thereafter. The Corporation had $125.1 million in municipal deposits at March 31, 2025 compared to $163.4 million at December 31, 2024.
Current wording
During the first six months of 2025, deposits increased $85.5 million to $2.26 billion at June 30, 2025. Noninterest bearing demand deposits increased $29.7 million, savings and interest-bearing demand deposits increased $31.2 million and time deposits increased $24.6 million during the same period. The increase in deposits was due in part to the opening of new deposit accounts and higher average balances within deposit accounts. The Corporation had $119.5 million in municipal deposits at June 30, 2025 compared to $163.4 million at December 31, 2024.
Showing the first 40 of 50 pairs. Open the source sections for the rest.
Rearranged current paragraphs (4)
Current report — wording carried from elsewhere
with its carrying value to determine whether an impairment exists. In the last evaluation of goodwill at the community banking segment and the consumer finance segment, which was the annual evaluation in the fourth quarter of 2024, the Corporation concluded that no impairment existed based on an assessment of qualitative factors.
Current report — wording carried from elsewhere
as a reserve for unfunded commitments and reported in Other Liabilities. The following table presents the Corporation’s reserve for unfunded commitments for the periods indicated.
Current report — wording carried from elsewhere
The consumer finance segment is an indirect lender that provides automobile financing through lending programs that are designed to serve customers in both the “prime” and “non-prime” markets, including those who may have limited access to traditional automobile financing due to having experienced prior credit difficulties. The preferred automobile is a later
Current report — wording carried from elsewhere
In addition to the regulatory risk-based capital requirements, the Bank must maintain a capital conservation buffer of 2.5 percent of risk-weighted assets as required by the Basel III Final Rule. Including the capital conservation buffer, the
Rearranged previous paragraphs (4)
Previous report — wording carried elsewhere
in the calculation, are not shown separately in the table, but are allocated to the rate and volume variances in proportion to the absolute dollar amounts of each.
Previous report — wording carried elsewhere
increased 17 basis points to 6.56 percent for the first quarter of 2025, compared to the same period in 2024, due to fluctuations in mortgage interest rates.
Previous report — wording carried elsewhere
Nonaccrual loans at the consumer finance segment were $975,000 at March 31, 2025 compared to $614,000 at December 31, 2024. Nonaccrual consumer finance loans remain low relative to the allowance for credit losses and the total consumer finance loan portfolio because the consumer finance segment generally initiates repossession of loan collateral once a loan becomes more than 60 days delinquent. Repossessed vehicles of the consumer finance segment are classified
Previous report — wording carried elsewhere
March 31, 2025, compared to $455.2 million, or 21.0 percent of total deposits as of December 31, 2024. The Corporation’s liquid assets and borrowing availability as of March 31, 2025 totaled $913.7 million, exceeding uninsured deposits, excluding intercompany cash holdings and secured municipal deposits, by $417.1 million.