Press Release: C&F Financial Corporation Announces Net Income for First Quarter

Dow Jones
Apr 24

TOANO, Va., April 23, 2026 (GLOBE NEWSWIRE) -- C&F Financial Corporation (the Corporation) $(CFFI)$, the holding company for C&F Bank, today reported consolidated net income of $6.8 million for the first quarter of 2026 compared to $5.4 million for the first quarter of 2025. The following table presents selected financial performance highlights for the periods indicated:

 
                                  For The Quarter Ended 
                      ---------------------------------------------- 
Consolidated 
Financial 
Highlights 
(unaudited)            3/31/2026        12/31/2025        3/31/2025 
-------------------   -----------      ------------      ----------- 
Consolidated net 
 income (000's)        $    6,794       $     6,716       $    5,395 
 
Earnings per share - 
 basic and diluted     $     2.08       $      2.07       $     1.66 
 
Annualized return on 
 average assets              0.97%             0.97%            0.84% 
Annualized return on 
 average equity             10.19%            10.41%            9.35% 
Annualized return on 
 average tangible 
 common equity(1)           11.28%            11.67%           10.65% 
 

________________________

 
(1)  For more information about these non-GAAP financial 
      measures, which are not calculated in accordance with 
      generally accepted accounting principles (GAAP), please 
      see "Use of Certain Non-GAAP Financial Measures" and 
      "Reconciliation of Certain Non-GAAP Financial Measures," 
      below. 
 
 

"C&F started 2026 with strong momentum, delivering earnings per share growth of 25 percent year over year," said Tom Cherry, President and Chief Executive Officer of C&F Financial Corporation. "Higher net income at our community banking and mortgage banking segments more than offset lower earnings at our consumer finance segment, compared to March 31, 2025. Solid loan and deposit growth at our community banking segment, approximately a 58 percent jump in mortgage originations at our mortgage banking segment, and higher net interest margin all helped drive these results.

The U.S. economy stayed resilient in the first quarter, but risks are building, specifically with the conflict in the Middle East and potential associated impacts on interest rates, energy prices, and other economic effects. As conditions change, we are prepared to adapt quickly."

Key highlights for the first quarter of 2026 are as follows.

   -- Community banking segment loans grew $24.1 million, or 6.1 percent 
      annualized, and $133.2 million, or 9.0 percent, compared to December 31, 
      2025 and March 31, 2025, respectively; 
 
   -- Consumer finance segment loans decreased $3.6 million, or 3.1 percent 
      annualized, and decreased $1.5 million, or less than one percent, 
      compared to December 31, 2025 and March 31, 2025, respectively; 
 
   -- Deposits increased $53.7 million, or 9.2 percent annualized, and $182.8 
      million, or 8.2 percent, compared to December 31, 2025 and March 31, 
      2025, respectively. A portion of the increases in deposits compared to 
      March 31, 2025 was due to the wind-down of the repurchase agreement 
      program with certain commercial deposit customers during the third 
      quarter of 2025. The balance of these repurchase agreements was $25.9 
      million at March 31, 2025; 
 
   -- Consolidated annualized net interest margin was 4.27 percent for the 
      first quarter of 2026 compared to 4.16 percent for the first quarter of 
      2025; 
 
   -- The consumer finance segment experienced net charge-offs at an annualized 
      rate of 2.98 percent of average total loans for the first quarter of 2026 
      compared to 2.86 percent and 2.64 percent for the fourth quarter and 
      first quarter of 2025, respectively; 
 
   -- Mortgage banking segment loan originations increased $65.9 million, or 
      57.9 percent, to $179.6 million for the first quarter of 2026 compared to 
      the first quarter of 2025. 

Community Banking Segment. The community banking segment reported net income of $7.1 million for the first quarter of 2026 compared to $5.4 million for the first quarter of 2025 due primarily to:

   -- higher interest income resulting from higher average balances of loans 
      and cash reserves and higher average interest rates on securities; 

partially offset by:

   -- higher salaries and employee benefits due primarily to the addition of a 
      seasoned lending team with the expansion into Southwest Virginia in the 
      third quarter of 2025 and annual compensation adjustments. 

Average loans increased $135.2 million, or 9.2 percent, for the first quarter of 2026 compared to the first quarter of 2025 due primarily to growth in the commercial real estate, land acquisition and development, and equity lines segments of the loan portfolio. Average deposits increased $180.5 million, or 8.2 percent, for the first quarter of 2026 compared to the first quarter of 2025 due primarily to higher balances across all categories of deposits. A portion of the increase in average deposits was due to the wind-down of the repurchase agreement program with certain commercial deposit customers during the third quarter of 2025. The average balance of these repurchase agreements was $28.2 million at March 31, 2025.

Average interest-earning asset yields were higher for the first quarter of 2026 compared to the first quarter of 2025 due primarily to higher average interest rates on securities available for sale. Average costs of interest-bearing deposits were lower for the first quarter of 2026 compared to the first quarter of 2025 due primarily to a decrease in average interest rates paid on time deposits.

The community banking segment's nonaccrual loans were $1.1 million at both March 31, 2026 and December 31, 2025. The community banking segment recorded provision for credit losses of $300,000 for the first quarter of 2026 compared to $100,000 for the first quarter of 2025. At March 31, 2026 the allowance for credit losses was $17.6 million compared to $17.4 million at December 31, 2025. The allowance for credit losses as a percentage of total loans decreased to 1.09 percent at March 31, 2026 from 1.10 percent at December 31, 2025. Management believes that the level of the allowance for credit losses is adequate to reflect the net amount expected to be collected.

Mortgage Banking Segment. The mortgage banking segment reported net income of $910,000 for the first quarter of 2026 compared to $431,000 for the first quarter of 2025 due primarily to:

   -- higher gains on sales of loans and higher mortgage banking fee income due 
      to higher volume of mortgage loan originations; and 
 
   -- higher mortgage lender services fee income; 

partially offset by:

   -- higher variable expenses tied to mortgage loan origination volume such as 
      commissions and bonuses, reported in salaries and employee benefits. 

Mortgage banking segment loan originations increased 57.9 percent compared to the first quarter of 2025 as the mortgage interest rate environment has become more favorable, which led to an increase in both purchases and refinancings. Mortgage loan originations for the mortgage banking segment were $179.6 million for the first quarter of 2026, comprised of $142.5 million home purchases and $37.1 million refinancings, compared to $113.8 million for the first quarter of 2025, comprised of $101.7 million home purchases and $12.1 million refinancings. Mortgage loan segment originations include originations of loans sold to the community banking segment, at prices similar to those paid by third-party investors. These transactions are eliminated to reach consolidated totals.

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 to $820,000 for the first quarter of 2026 compared to $541,000 for the first quarter of 2025 due primarily to increased mortgage loan volume in the industry.

During the first quarter of 2026, the mortgage banking segment recorded net reversals of provision for indemnification losses of $35,000 compared to net reversals of provision for indemnification losses of $25,000 in the same period of 2025. The allowance for indemnifications was $1.1 million and $1.2 million at March 31, 2026 and December 31, 2025, respectively. The release of indemnification reserves in 2026 and 2025 was due primarily to lower volume of mortgage loan originations in recent years compared to years prior when the indemnification reserve was increased due to higher volume coming out of the pandemic, 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.

Consumer Finance Segment. The consumer finance segment reported a net loss of $81,000 for the first quarter of 2026 compared to net income of $226,000 for the first quarter of 2025 due primarily to:

   -- higher provision for credit losses due primarily to higher net 
      charge-offs; and 
 
   -- higher professional fees and higher loan processing and collection 
      expenses; 

partially offset by:

   -- higher interest income resulting from higher loan yields due primarily to 
      a shift in the mix of the loan portfolio with the termination of the 
      lower-yielding marine and recreational vehicle loan program; and 
 
   -- lower interest expense allocation on borrowings from the community 
      banking segment as a result of lower average interest rates; 

Average loans decreased $1.0 million, or less than one percent, for the first quarter of 2026 compared to the same period in 2025 due primarily to a decrease in marine and recreational vehicle loans as the third party administrator of that program significantly decreased sales of those loans to outside parties during 2025, which led to the consumer finance segment ending future purchases under the program during the third quarter of 2025. The marine and recreational vehicle portfolio is expected to run off over the next several years as scheduled borrower payments are made on the existing loans. The consumer finance segment experienced net charge-offs at an annualized rate of 2.98 percent of average total loans for the first quarter of 2026 compared to 2.64 percent for the first quarter of 2025 due primarily to an increase in delinquent loans and repossessions. At March 31, 2026, total delinquent loans as a percentage of total loans was 3.35 percent compared to 4.38 percent at December 31, 2025 and 3.05 percent at March 31, 2025.

The consumer finance segment, at times, offers payment deferrals 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 1.34 percent of average automobile loans outstanding during the first quarter of 2026 compared to 2.50 percent during the fourth quarter of 2025 and 1.75 percent during the first quarter of 2025.

The allowance for credit losses was $22.1 million, or 4.80 percent of total loans, at March 31, 2026 compared to $22.3 million, or 4.79 percent of total loans, at December 31, 2025. Management believes that the level of the allowance for credit losses is adequate to reflect the net amount expected to be collected. If loan performance deteriorates resulting in further elevated delinquencies or net charge-offs, the provision for credit losses may increase in future periods.

Liquidity. The objective of the Corporation's liquidity management is to ensure the continuous availability of funds to satisfy the credit needs of our customers and the demands of our depositors, creditors and investors. Uninsured deposits represent an estimate of amounts above the Federal Deposit Insurance Corporation (FDIC) insurance coverage limit of $250,000. As of March 31, 2026, the Corporation's uninsured deposits were approximately $745.7 million, or 31.1 percent of total deposits. Excluding intercompany cash holdings and municipal deposits, which are secured with pledged securities, amounts uninsured were approximately $578.4 million, or 24.1 percent of total deposits as of March 31, 2026. The Corporation's liquid assets, which include cash and due from banks, interest-bearing deposits at other banks and nonpledged securities available for sale, were $428.9 million and borrowing availability was $681.4 million as of March 31, 2026, which in total exceed uninsured deposits, excluding intercompany cash holdings and secured municipal deposits, by $531.9 million as of March 31, 2026.

In addition to deposits, the Corporation utilizes short-term and long-term borrowings as sources of funds. Short-term borrowings from the Federal Reserve Bank and the Federal Home Loan Bank of Atlanta (FHLB) may be used to fund the Corporation's day-to-day operations. Total borrowings decreased to $103.3 million at March 31, 2026 from $113.3 million at December 31, 2025 due primarily to the repayment of FHLB advances during the first quarter of 2026.

Additional sources of liquidity available to the Corporation include cash flows from operations, loan payments and payoffs, deposit growth, maturities, calls and sales of securities, the issuance of brokered certificates of deposit and the capacity to borrow additional funds.

Capital and Dividends. During the first quarter of 2026, the Corporation increased its quarterly cash dividend by 4 percent, to 48 cents per share, compared to the previous quarterly dividend. This dividend, which was paid to shareholders on April 1, 2026, represents a payout ratio of 23.1 percent of earnings per share for the first quarter of 2026. 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.

Total consolidated equity increased $3.8 million at March 31, 2026, compared to December 31, 2025, due primarily to net income, partially offset by dividends paid on the Corporation's common stock and higher unrealized losses in the market value of securities available for sale, which are recognized as a component of other comprehensive income. The Corporation's securities available for sale are fixed income debt securities and their 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, increased to $11.7 million at March 31, 2026 compared to $10.2 million at December 31, 2025 due primarily to fluctuations in debt security market interest rates.

As of March 31, 2026, C&F Bank was categorized as well capitalized under the FDIC's regulatory framework for prompt corrective action. To be categorized as well capitalized under regulations applicable at March 31, 2026, C&F Bank was required to maintain minimum total risk-based, Tier 1 risk-based, CET1 risk-based and Tier 1 leverage ratios. In addition to the regulatory risk-based capital requirements, C&F Bank must maintain a capital conservation buffer of additional capital of 2.5 percent of risk-weighted assets as required by the Basel III capital rules. The Corporation and C&F Bank exceeded these ratios at March 31, 2026. For additional information, see "Capital Ratios" below. The above mentioned ratios are not impacted by unrealized losses on securities available for sale. In the event that all of these unrealized losses become realized into earnings, the Corporation and C&F Bank would both continue to exceed minimum capital requirements, including the capital conservation buffer, and be considered well capitalized.

The Corporation has a share repurchase program, effective January 1, 2026 through December 31, 2026, that was authorized by the Board of Directors to repurchase up to $5.0 million of the Corporation's common stock (the 2026 Repurchase Program). During the first quarter of 2026, the Corporation repurchased 4,279 shares, or $309,000 of its common stock under the 2026 Repurchase Program.

About C&F Financial Corporation. The Corporation's common stock is listed for trading on The Nasdaq Stock Market under the symbol CFFI. The common stock closed at a price of $76.30 per share on April 22, 2026. At March 31, 2026, the book value per share of the Corporation was $81.73 and the tangible book value per share was $73.70. For more information about the Corporation's tangible book value per share, which is not calculated in accordance with GAAP, please see "Use of Certain Non-GAAP Financial Measures" and "Reconciliation of Certain Non-GAAP Financial Measures," below.

C&F Bank operates 31 banking offices and five commercial loan offices located throughout Virginia and offers full wealth management services through its subsidiary C&F Wealth Management, Inc. C&F Mortgage Corporation and its subsidiary C&F Select LLC provide mortgage loan origination services through offices located in Virginia and the surrounding states. C&F Finance Company provides automobile, marine and recreational vehicle loans through indirect lending programs offered primarily in the Mid-Atlantic, Midwest and Southern United States from its headquarters in Henrico, Virginia.

Additional information regarding the Corporation's products and services, as well as access to its filings with the Securities and Exchange Commission (SEC), are available on the Corporation's website at http://www.cffc.com.

Use of Certain Non-GAAP Financial Measures. The accounting and reporting policies of the Corporation conform to GAAP in the United States and prevailing practices in the banking industry. However, certain non-GAAP measures are used by management to supplement the evaluation of the Corporation's performance. These include net tangible income attributable to the Corporation, return on average tangible common equity (ROTCE), tangible book value per share, price to tangible book value ratio, and the following fully-taxable equivalent (FTE) measures: interest and fees on loans-FTE, interest and dividends on securities-FTE, total interest income-FTE and net interest income-FTE. 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.

Management believes that the use of these non-GAAP measures provides meaningful information about operating performance by enhancing comparability with other financial periods, other financial institutions, and between different sources of interest income. The non-GAAP measures used by management enhance comparability by excluding the effects of balances of intangible assets, including goodwill, that vary significantly between institutions, and tax benefits that are not consistent across different opportunities for investment. These non-GAAP financial measures should not be considered an alternative to, or more important than, GAAP-basis financial statements, and other bank holding companies may define or calculate these or similar measures differently. A reconciliation of the non-GAAP financial measures used by the Corporation to evaluate and measure the Corporation's performance to the most directly comparable GAAP financial measures is presented below in the "Reconciliation of Certain Non-GAAP Financial Measures," "Fully Taxable Equivalent Net Interest Income" and "Tangible Book Value Per Share" tables.

Forward-Looking Statements. This press release contains statements concerning the Corporation's expectations, plans, objectives or beliefs regarding future financial performance and other statements that are not historical facts, which may constitute "forward-looking statements" as defined by federal securities laws. Forward-looking statements generally can be identified by the use of words such as "believe," "expect," "anticipate," "estimate," "plan," "may," "might," "will," "intend," "target," "should," "could," or similar expressions, are not statements of historical fact, and are based on management's beliefs, assumptions and expectations regarding future events or performance as of the date of this press release, taking into account all information currently available. These statements may include, but are not limited to: statements made in Mr. Cherry's quotation and statements regarding expected future operations and financial performance; expected trends in yields on loans; expected future recovery of investments in debt securities; future dividend payments and share repurchases; deposit trends; charge-offs and delinquencies; changes in cost of funds and net interest margin and items affecting net interest margin; strategic business initiatives, including our expansion into Southwest Virginia, and the anticipated effects thereof; changes in interest rates and the effects thereof on net interest income; expected impact of unrealized losses on earnings and regulatory capital of the Corporation or C&F Bank; expected renewal of unsecured federal funds agreements; mortgage loan originations; expectations regarding C&F Bank's regulatory risk-based capital requirement levels; competition; our loan portfolio; our digital services; the adoption of artificial intelligence; deposit trends; improving operational efficiencies; retention of qualified loan officers and expectations regarding new mortgage loan originations; higher quality automobile loan contracts; expectations regarding the runoff of the marine and recreational vehicle portfolio; technology initiatives; our diversified business strategy; asset quality; credit quality; adequacy of allowances for credit losses and the level of future charge-offs; market interest rates and housing inventory and resulting effects on mortgage loan origination volume; sources of liquidity; adequacy of the reserve for indemnification losses related to loans sold in the secondary market; capital levels; the effect of future market and industry trends and conditions; the effects of future interest rate levels and fluctuations; cybersecurity risks; and inflation. These forward-looking statements are subject to significant risks and uncertainties due to factors that could have a material adverse effect on the operations and future prospects of the Corporation including, but not limited to, changes in:

   -- interest rates, such as volatility in short-term interest rates or yields 
      on U.S. Treasury bonds, fluctuations in interest rates following actions 
      by the Federal Reserve and increases or volatility in mortgage interest 
      rates 
 
   -- general business conditions, as well as conditions within the financial 
      markets 
 
   -- general economic conditions, including unemployment levels, inflation 
      rates, supply chain disruptions, slowdowns in economic growth and 
      government shutdowns 
 
   -- general market conditions, including disruptions due to pandemics or 
      significant health hazards, severe weather conditions, natural disasters, 
      terrorist activities, financial crises, political crises, changes in 
      trade policy and the implementation of tariffs, geopolitical tensions, 
      war and other military conflicts (including the conflict in the Middle 
      East and potential associated impacts on interest rates and energy 
      prices) or other major events, or the prospect of these events 
 
   -- average loan yields and securities yields and average costs of 
      interest-bearing deposits and borrowings 
 
   -- financial services industry conditions, including bank failures or rumors 
      of such failures, the soundness of other financial institutions or 
      concerns involving liquidity, along with actions taken by governmental 
      agencies to address such conditions, and the effects on financial 
      institutions, including us, on, among other things, the ability to 
      attract or retain depositors and to borrow or raise capital 
 
   -- labor market conditions, including attracting, hiring, training, 
      motivating and retaining qualified employees 
 
   -- the legislative and regulatory climate, regulatory initiatives with 
      respect to financial institutions, products and services, the Consumer 
      Financial Protection Bureau (the CFPB) and the regulatory and enforcement 
      activities of the CFPB 
 
   -- monetary and fiscal policies of the U.S. Government, including policies 
      of the FDIC, U.S. Department of the Treasury and the Board of Governors 
      of the Federal Reserve System, and the effect of these policies on 
      interest rates and business in our markets 
 
   -- demand for financial services in the Corporation's market areas 
 
   -- the value of securities held in the Corporation's investment portfolios 
 
   -- the quality or composition of the loan portfolios and the value of the 
      collateral securing those loans 
 
   -- the inventory level, demand and fluctuations in the pricing of used 
      automobiles, including sales prices of repossessed vehicles 
 
   -- the level of automobile loan delinquencies or defaults and our ability to 
      repossess automobiles securing delinquent automobile finance installment 
      contracts 
 
   -- the level of net charge-offs on loans and the adequacy of our allowance 
      for credit losses 
 
   -- the level of indemnification losses related to mortgage loans sold 
 
   -- demand for loan products 
 
   -- deposit flows 
 
   -- the strength of the Corporation's counterparties 
 
   -- the availability of lines of credit from the FHLB and other 
      counterparties 
 
   -- competition from both banks and non-banks, including competition in the 
      automobile finance market 
 
   -- services provided by, or the level of the Corporation's reliance upon, 
      third parties for key services 
 
   -- the commercial and residential real estate markets, including changes in 
      property values 
 
   -- the demand for residential mortgages and conditions in the secondary 
      residential mortgage loan markets 
 
   -- the Corporation's technology initiatives and other strategic initiatives 
 
   -- the Corporation's branch expansion, relocation and consolidation plans 
 
   -- cyber threats, attacks or events, including emerging issues related to 
      the development and use of artificial intelligence that could give rise 
      to legal or regulatory action or increase cybersecurity threats 
 
   -- C&F Bank's product offerings 
 
   -- accounting principles, policies and guidelines, and elections made by the 
      Corporation thereunder. 

These risks and uncertainties, and the risks discussed in more detail in the Corporation's Annual Report on Form 10-K for the year ended December 31, 2025 and other reports filed with the SEC should be considered in evaluating the forward-looking statements contained herein. Readers should not place undue reliance on any forward-looking statement. There can be no assurance that actual results will not differ materially from historical results or those expressed in or implied by such forward-looking statements, or that the beliefs, assumptions and expectations underlying such forward-looking statements will be proven to be accurate. Forward-looking statements are made as of the date of this press release, and we undertake no obligation to update or revise any forward-looking statement to reflect events or circumstances arising after the date on which the statement was made, except as otherwise required by law.

 
Contact:   Jason Long, CFO and Secretary 
                          (804) 843-2360 
 
 
 
C&F Financial Corporation 
 Selected Financial Information 
 (dollars in thousands, except for per share data) 
 (unaudited) 
 
Consolidated Balance Sheets                3/31/2026    12/31/2025 
Assets 
Cash and due from banks                   $   15,286   $   13,622 
Interest-bearing deposits in other banks      62,141       65,510 
     Total cash and cash equivalents          77,427       79,132 
Securities--available for sale at fair 
 value, amortized cost of $485,390 and 
 $471,036, respectively                      470,619      458,111 
Loans held for sale, at fair value            56,120       40,911 
Loans, net of allowance for credit 
 losses of $39,665 and $39,677, 
 respectively                              2,035,387    2,014,899 
Restricted stock, at cost                      3,346        3,680 
Corporate premises and equipment, net         38,727       39,200 
Other real estate owned, net of 
 valuation allowance of $0 and $215, 
 respectively                                     --        1,316 
Accrued interest receivable                   11,752       11,726 
Goodwill                                      25,191       25,191 
Other intangible assets, net                     884          909 
Bank-owned life insurance                     21,911       21,808 
Net deferred tax asset                        14,411       14,039 
Other assets                                  57,973       57,572 
     Total assets                         $2,813,748   $2,768,494 
 
Liabilities 
Deposits 
   Noninterest-bearing demand deposits    $  568,420   $  543,673 
   Savings, money market and 
    interest-bearing demand deposits         907,732      905,683 
   Time deposits                             923,304      896,367 
     Total deposits                        2,399,456    2,345,723 
Short-term borrowings                         20,000       20,000 
Long-term borrowings                          57,750       67,842 
Trust preferred capital notes                 25,501       25,493 
Accrued interest payable                       4,642        3,745 
Other liabilities                             40,287       43,343 
     Total liabilities                     2,547,636    2,506,146 
 
Commitments and contingent liabilities 
 
Equity 
Common stock ($1.00 par value, 8,000,000 
 shares authorized, 3,248,149 and 
 3,245,972 shares issued and 
 outstanding, respectively, includes 
 100,480 and 100,578 of unvested shares, 
 respectively)                                 3,148        3,145 
Additional paid-in capital                     1,016        1,078 
Retained earnings                            273,883      268,696 
Accumulated other comprehensive loss, 
 net                                         (12,577)     (11,166) 
     Equity attributable to C&F 
      Financial Corporation                  265,470      261,753 
Noncontrolling interest                          642          595 
     Total equity                            266,112      262,348 
     Total liabilities and equity         $2,813,748   $2,768,494 
 
 
 
 
                                  For The Quarter Ended 
                            ---------------------------------- 
Consolidated Statements 
of Income                   3/31/2026   12/31/2025  3/31/2025 
                            ----------  ----------  ---------- 
Interest income 
   Interest and fees on 
    loans                   $   34,715  $   34,842  $   32,382 
   Interest on 
    interest-bearing 
    deposits in other 
    banks                          651         864         502 
   Interest and dividends 
   on securities 
     U.S. treasury, 
      government agencies 
      and corporations             259         270         289 
     Mortgage-backed 
      securities                 1,660       1,602       1,394 
     Tax-exempt 
      obligations of 
      states and political 
      subdivisions               1,094       1,049         911 
     Taxable obligations 
      of states and 
      political 
      subdivisions                 194         192         195 
     Corporate and other           573         502         315 
                             ---------   ---------   --------- 
      Total interest 
       income                   39,146      39,321      35,988 
                             ---------   ---------   --------- 
Interest expense 
   Savings and 
    interest-bearing 
    deposits                     2,263       2,328       1,805 
   Time deposits                 7,586       7,857       7,964 
   Borrowings                    1,236       1,259         859 
   Trust preferred capital 
    notes                          352         359         350 
                             ---------   ---------   --------- 
      Total interest 
       expense                  11,437      11,803      10,978 
                             ---------   ---------   --------- 
Net interest income             27,709      27,518      25,010 
Provision for credit 
 losses                          3,600       3,550       3,000 
                             ---------   ---------   --------- 
      Net interest income 
       after provision for 
       credit losses            24,109      23,968      22,010 
                             ---------   ---------   --------- 
Noninterest income 
   Gains on sales of loans       2,545       1,778       1,847 
   Interchange income            1,577       1,580       1,475 
   Service charges on 
    deposit accounts             1,020       1,052         990 
   Investment income from 
    other equity 
    interests                      372         210         207 
   Mortgage banking fee 
    income                         850         732         570 
   Wealth management 
    services income, net           808         820         732 
   Mortgage lender 
    services income                820         784         536 
   Other service charges 
    and fees                       504         504         498 
   Other income, net                54         906         718 
                             ---------   ---------   --------- 
      Total noninterest 
       income                    8,550       8,366       7,573 
                             ---------   ---------   --------- 
Noninterest expenses 
   Salaries and employee 
    benefits                    14,357      14,027      13,483 
   Occupancy                     2,215       2,265       2,193 
   Data processing               3,175       3,081       2,866 
   Professional fees               917         876         921 
   Insurance expense               430         415         491 
   Marketing and 
    advertising expenses           547         625         529 
   Loan processing and 
    collection expenses            873         878         683 
   Other                         1,801       2,074       1,893 
                             ---------   ---------   --------- 
      Total noninterest 
       expenses                 24,315      24,241      23,059 
                             ---------   ---------   --------- 
      Income before income 
       taxes                     8,344       8,093       6,524 
Income tax expense               1,550       1,377       1,129 
                             ---------   ---------   --------- 
      Net income                 6,794       6,716       5,395 
Less net income 
 attributable to 
 noncontrolling interest            47          15          27 
                             ---------   ---------   --------- 
      Net income 
       attributable to C&F 
       Financial 
       Corporation          $    6,747  $    6,701  $    5,368 
                             ---------   ---------   --------- 
      Net income per share 
       - basic and 
       diluted              $     2.08  $     2.07  $     1.66 
                             =========   =========   ========= 
 
Weighted average shares 
 outstanding - basic and 
 diluted                     3,248,485   3,238,417   3,234,935 
Dividends declared per 
 share                      $     0.48  $     0.46  $     0.46 
 
 
 
                                   For The Quarter Ended 
                           ------------------------------------- 
Other Performance Data      3/31/2026   12/31/2025    3/31/2025 
-------------------------   ---------  ------------  ----------- 
Net income (loss): 
  Community banking         $  7,110    $    7,292   $  5,445 
  Mortgage banking               910           250        431 
  Consumer finance               (81)          233        226 
  Other(1)                    (1,145)       (1,059)      (707) 
                             -------       -------    ------- 
  Total                     $  6,794    $    6,716   $  5,395 
                             =======       =======    ======= 
 
Mortgage loan 
originations - mortgage 
banking: 
  Purchases                 $142,526    $  149,020   $101,640 
  Refinancings                37,076        36,936     12,110 
                             -------       -------    ------- 
   Total                    $179,602    $  185,956   $113,750 
                             -------       -------    ------- 
 
Mortgage loans sold - 
 mortgage banking           $164,520    $  178,671   $106,431 
 

________________________

 
(1)  Includes results of the holding company that are not 
      allocated to the business segments and elimination 
      of inter-segment activity. 
 
 
 
                                               For the Quarter Ended 
                       --------------------------------------------------------------------- 
                            3/31/2026               12/31/2025                3/31/2025 
                       -------------------      -------------------      ------------------- 
                         Average    Yield/        Average    Yield/        Average    Yield/ 
Yield Analysis           Balance     Rate         Balance     Rate         Balance     Rate 
--------------------   -----------  ------      -----------  ------      -----------  ------ 
Assets 
Loans: 
  Community banking 
   segment(1)          $1,602,769     5.57%     $1,559,824     5.53%     $1,467,555     5.52% 
  Mortgage banking 
   segment                 38,738     5.65          42,170     6.03          20,968     6.56 
  Consumer finance 
   segment                464,541    10.67         464,312    10.69         465,526    10.56 
                        ---------                ---------                --------- 
  Total loans           2,106,048     6.69       2,066,306     6.70       1,954,049     6.73 
                        ---------                ---------                --------- 
Securities - 
available for sale: 
  Taxable                 344,936     3.11         343,596     2.99         339,450     2.58 
  Tax-exempt(1)           131,702     4.21         127,369     4.16         119,033     3.87 
                        ---------                ---------                --------- 
  Total securities - 
   available for 
   sale                   476,638     3.42         470,965     3.31         458,483     2.92 
                        ---------                ---------                --------- 
Interest-bearing 
 deposits in other 
 banks                     79,426     3.32          97,051     3.53          55,830     3.65 
                        ---------                ---------                --------- 
Total earning assets    2,662,112     6.01       2,634,322     5.98       2,468,362     5.95 
Allowance for credit 
 losses                   (40,516)                 (40,259)                 (40,605) 
Total non-earning 
 assets                   170,659                  165,364                  154,554 
                        ---------                ---------                --------- 
Total assets           $2,792,255               $2,759,427               $2,582,311 
                        =========                =========                ========= 
 
Liabilities and 
Equity 
Interest-bearing 
deposits: 
  Interest-bearing 
   demand deposits     $  351,066     0.72      $  333,690     0.66      $  332,341     0.67 
  Savings and money 
   market deposit 
   accounts               550,647     1.21         554,179     1.27         489,217     1.00 
  Time deposits           908,808     3.39         892,338     3.49         821,949     3.93 
                        ---------                ---------                --------- 
  Total 
   interest-bearing 
   deposits             1,810,521     2.21       1,780,207     2.27       1,643,507     2.40 
                        ---------                ---------                --------- 
Borrowings: 
  Repurchase 
   agreements                  --       --              --       --          28,192     1.59 
  Other borrowings        112,324     5.66         113,484     5.70          93,597     4.69 
                        ---------                ---------                --------- 
  Total borrowings        112,324     5.66         113,484     5.70         121,789     3.97 
                        ---------                ---------                --------- 
  Total 
   interest-bearing 
   liabilities          1,922,845     2.41       1,893,691     2.48       1,765,296     2.51 
Noninterest-bearing 
 demand deposits          558,877                  562,011                  545,346 
Other liabilities          43,770                   45,751                   40,874 
                        ---------                ---------                --------- 
  Total liabilities     2,525,492                2,501,453                2,351,516 
Equity                    266,763                  257,974                  230,795 
                        ---------                ---------                --------- 
  Total liabilities 
   and equity          $2,792,255               $2,759,427               $2,582,311 
                        =========                =========                ========= 
Net interest income 
Interest rate spread                  3.60%                    3.50%                    3.44% 
                                    ======                   ======                   ====== 
Interest expense to 
 average earning 
 assets                               1.74%                    1.78%                    1.79% 
                                    ======                   ======                   ====== 
Net interest margin                   4.27%                    4.20%                    4.16% 
                                    ======                   ======                   ====== 
 

________________________

 
(1)  Interest on tax-exempt loans and securities is presented 
      on a taxable-equivalent basis using the federal corporate 
      income tax rate of 21 percent that was applicable 
      for all periods presented. For more information about 
      these non-GAAP financial measures, please see "Use 
      of Certain Non-GAAP Financial Measures" and "Reconciliation 
      of Certain Non-GAAP Financial Measures." 
 
 
 
Asset Quality                           3/31/2026       12/31/2025 
                                        ----------      ---------- 
Community Banking 
  Total loans                           $1,614,406      $1,590,301 
  Nonaccrual loans                      $    1,099      $    1,135 
  Allowance for credit losses (ACL)     $   17,564      $   17,418 
  Nonaccrual loans to total loans             0.07%           0.07% 
  ACL to total loans                          1.09%           1.10% 
  ACL to nonaccrual loans                 1,598.18%       1,534.63% 
  Annualized year-to-date net 
   charge-offs to average loans               0.00%           0.01% 
 
Consumer Finance 
  Total loans                           $  460,646      $  464,275 
  Nonaccrual loans                      $      913      $    1,022 
  Repossessed assets                    $      879      $      937 
  ACL                                   $   22,101      $   22,259 
  Nonaccrual loans to total loans             0.20%           0.22% 
  ACL to total loans                          4.80%           4.79% 
  ACL to nonaccrual loans                 2,420.70%       2,177.98% 
  Annualized year-to-date net 
   charge-offs to average loans               2.98%           2.59% 
 
 
 
Market Ratios                             3/31/2026    12/31/2025 
                                         -----------  ------------ 
Market value per share                    $    72.94   $     72.59 
Book value per share                      $    81.73   $     80.64 
Price to book value ratio                       0.89          0.90 
Tangible book value per share(1)          $    73.70   $     72.60 
Price to tangible book value ratio(1)           0.99          1.00 
Price to earnings ratio (ttm)                   8.39          8.76 
 

________________________

 
(1)  For more information about these non-GAAP financial 
      measures, please see "Use of Certain Non-GAAP Financial 
      Measures" and "Reconciliation of Certain Non-GAAP 
      Financial Measures." 
 
 
 
                                                        Minimum Capital 
Capital Ratios          3/31/2026      12/31/2025       Requirements(3) 
                        ---------      ----------      ----------------- 
C&F Financial 
Corporation(1) 
   Total risk-based 
    capital ratio            15.1%           15.2%           8.0% 
   Tier 1 risk-based 
    capital ratio            12.1%           12.2%           6.0% 
   Common equity tier 
    1 capital ratio          11.0%           11.0%           4.5% 
   Tier 1 leverage 
    ratio                    10.1%           10.0%           4.0% 
 
C&F Bank(2) 
   Total risk-based 
    capital ratio            14.7%           14.8%           8.0% 
   Tier 1 risk-based 
    capital ratio            13.4%           13.6%           6.0% 
   Common equity tier 
    1 capital ratio          13.4%           13.6%           4.5% 
   Tier 1 leverage 
    ratio                    11.1%           11.1%           4.0% 
 

________________________

 
(1)  The Corporation, a small bank holding company under 
      applicable regulations and guidance, is not subject 
      to the minimum regulatory capital regulations for 
      bank holding companies. The regulatory requirements 
      that apply to bank holding companies that are subject 
      to regulatory capital requirements are presented above, 
      along with the Corporation's capital ratios as determined 
      under those regulations. 
(2)  All ratios at March 31, 2026 are estimates and subject 
      to change pending regulatory filings. All ratios at 
      December 31, 2025 are presented as filed. 
(3)  The ratios presented for minimum capital requirements 
      are those to be considered adequately capitalized. 
 
 
 
                                   For The Quarter Ended 
                          ---------------------------------------- 
                           3/31/2026     12/31/2025    3/31/2025 
-----------------------   ------------  ------------  ------------ 
Reconciliation of 
Certain Non-GAAP 
Financial Measures 
Return on Average 
Tangible Common Equity 
Average total equity, as 
 reported                 $266,763      $257,974      $230,795 
Average goodwill           (25,191)      (25,191)      (25,191) 
Average other intangible 
 assets                       (896)         (924)       (1,118) 
Average noncontrolling 
 interest                     (590)         (479)         (637) 
                           -------       -------       ------- 
Average tangible common 
 equity                   $240,086      $231,380      $203,849 
                           =======       =======       ======= 
 
Net income                $  6,794      $  6,716      $  5,395 
Amortization of 
 intangibles                    25            50            62 
Net income attributable 
 to noncontrolling 
 interest                      (47)          (15)          (27) 
                           -------       -------       ------- 
Net tangible income 
 attributable to C&F 
 Financial Corporation    $  6,772      $  6,751      $  5,430 
                           =======       =======       ======= 
 
  Annualized return on 
   average equity, as 
   reported                  10.19%        10.41%         9.35% 
  Annualized return on 
   average tangible 
   common equity             11.28%        11.67%        10.65% 
 
 
 
                                          For The Quarter Ended 
                                  -------------------------------------- 
                                   3/31/2026    12/31/2025    3/31/2025 
-------------------------------   -----------  ------------  ----------- 
Fully Taxable Equivalent Net 
Interest Income(1) 
  Interest income on loans         $   34,715   $    34,842   $   32,382 
  FTE adjustment                           47            51           46 
                                      -------      --------      ------- 
  FTE interest and fees on loans   $   34,762   $    34,893   $   32,428 
                                      =======      ========      ======= 
 
  Interest income on securities    $    3,780   $     3,615   $    3,104 
  FTE adjustment                          291           277          242 
                                      -------      --------      ------- 
  FTE interest and dividends on 
   securities                      $    4,071   $     3,892   $    3,346 
                                      =======      ========      ======= 
 
  Total interest income            $   39,146   $    39,321   $   35,988 
  FTE adjustment                          338           328          288 
                                      -------      --------      ------- 
  FTE interest income              $   39,484   $    39,649   $   36,276 
                                      =======      ========      ======= 
 
  Net interest income              $   27,709   $    27,518   $   25,010 
  FTE adjustment                          338           328          288 
                                      -------      --------      ------- 
  FTE net interest income          $   28,047   $    27,846   $   25,298 
                                      =======      ========      ======= 
 

________________

 
(1)  Assuming a tax rate of 21%. 
 
 
 
 
                                           3/31/2026    12/31/2025 
                                          -----------  ------------- 
Tangible Book Value Per Share 
Equity attributable to C&F Financial 
 Corporation                              $  265,470   $  261,753 
Goodwill                                     (25,191)     (25,191) 
Other intangible assets                         (884)        (909) 
                                           ---------    --------- 
Tangible equity attributable to C&F 
 Financial Corporation                    $  239,395   $  235,653 
                                           =========    ========= 
 
Shares outstanding                         3,248,149    3,245,972 
 
  Book value per share                    $    81.73   $    80.64 
  Tangible book value per share           $    73.70   $    72.60 
 

(END) Dow Jones Newswires

April 23, 2026 12:09 ET (16:09 GMT)

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10