A publicly traded mortgage lender that does business in six eastern states said it would delay its second-quarter earnings report after uncovering evidence that two former employees embezzled $2.2 million.
Virginia-based C&F Mortgage Corp., a subsidiary of C&F Bank, said an investigation of the suspected theft is underway. The company says its insurance will cover any losses, minus a $75,000 deductible, and no changes to previously reported profits are expected. The deductible will be recorded as a charge to income when the company reports second-quarter earnings in two weeks.
C&F Mortgage Corp. provides mortgage and title services through 20 offices located throughout Virginia, Maryland, North Carolina, Delaware, Pennsylvania and New Jersey.