C&F Financial Corp. of West Point, Va., announced Monday that it believes two former employees stole $2.2 million from its mortgage subsidiary.
The $675 million-asset company said that it has contacted its insurance company and expects to be covered for the losses, except a $75,000 deductible. It plans to record that deductible as a charge for the second quarter. The company said there should be no changes to its historical income statements.
C&F plans to announce its second-quarter results in two weeks.
The company earned 77 cents per diluted share in the first quarter, up 8.5% from the first quarter of 2005. The one analyst covering C&F estimated that it would report second-quarter earnings per share of 84 cents. It reported earnings of 82 cents per diluted share for last year's second quarter.
In late trading Monday, shares of C&F were up 1.17%, to $37.99, from Friday's close.
