TOANO, Va., Oct. 23, 2025 (GLOBE NEWSWIRE) -- C&F Financial Corporation (the Corporation) $(CFFI)$, the holding company for C&F Bank, today reported consolidated net income of $7.1 million for the third quarter of 2025, an increase of 31.2 percent compared to $5.4 million for the third quarter of 2024. The Corporation reported consolidated net income of $20.3 million for the first nine months of 2025, an increase of 46.0 percent compared to $13.9 million for the first nine months of 2024. The following table presents selected financial performance highlights for the periods indicated:
For the Nine Months
For The Quarter Ended Ended
---------------------------- ------------------------
Consolidated
Financial
Highlights
(unaudited) 9/30/2025 9/30/2024 9/30/2025 9/30/2024
------------- ------------- ------------- ----------- -----------
Consolidated
net income
(000's) $ 7,113 $ 5,420 $20,275 $13,889
Earnings per
share - basic
and diluted $ 2.18 $ 1.65 $ 6.22 $ 4.15
Annualized
return on
average
assets 1.06% 0.86% 1.02% 0.75%
Annualized
return on
average
equity 11.60% 9.74% 11.36% 8.47%
Annualized
return on
average
tangible
common
equity(1) 13.07% 11.16% 12.84% 9.74%
________________________
(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.
"We are delighted and proud of our third quarter results," stated Tom Cherry, President and Chief Executive Officer of C&F Financial Corporation. "Our performance this quarter highlights the strength of our diversified business model. We saw robust growth in loans and deposits within our community banking segment and loan originations at our mortgage banking segment also increased compared to prior year. Although some market data suggests softening in the broader economy, our liquidity, capital position and asset quality remain strong and give us confidence in our ability to continue growing responsibly. Additionally, our recent expansion into Southwest Virginia, which was announced this quarter, is already yielding promising results."
Key highlights for the third quarter and first nine months of 2025 are as follows.
-- Community banking segment loans grew $91.4 million, or 8.4 percent
annualized, and $112.9 million, or 7.9 percent, compared to December 31,
2024 and September 30, 2024, respectively;
-- Consumer finance segment loans decreased $3.5 million, or 1.0 percent
annualized, and $14.1 million, or 2.9 percent, compared to December 31,
2024 and September 30, 2024, respectively;
-- Deposits increased $127.2 million, or 7.8 percent annualized, and $162.1
million, or 7.6 percent, compared to December 31, 2024 and September 30,
2024, respectively;
-- Consolidated annualized net interest margin was 4.24 percent for the
third quarter of 2025 compared to 4.13 percent for the third quarter of
2024 and 4.27 percent in the second quarter of 2025;
-- The community banking segment recorded a net reversal of provision for
credit losses of $100,000 and a provision for credit losses of $700,000
for the third quarters of 2025 and 2024, respectively, and recorded a net
reversal of provision for credit losses of $300,000 and a provision for
credit losses of $1.7 million for the first nine months of 2025 and 2024,
respectively;
-- The consumer finance segment recorded provision for credit losses of $3.0
million for the third quarter of both 2025 and 2024, and recorded
provision for credit losses of $8.3 million and $8.1 million for the
first nine months of 2025 and 2024, respectively;
-- The consumer finance segment experienced net charge-offs at an annualized
rate of 2.68 percent and 2.51 percent of average total loans for the
third quarter and first nine months of 2025, respectively, compared to
2.65 percent and 2.36 percent for the same periods of 2024;
-- Mortgage banking segment loan originations increased $10.1 million, or
6.4 percent, to $167.0 million for the third quarter of 2025 compared to
the third quarter of 2024 and decreased $46.5 million, or 21.8 percent
compared to the second quarter of 2025; and
-- The Corporation expanded into Southwest Virginia with the opening of a
new loan production office in Roanoke in July 2025.
Community Banking Segment. The community banking segment reported net income of $7.4 million and $19.9 million for the third quarter and first nine months of 2025, respectively, compared to $5.3 million and $13.9 million for the same periods of 2024, due primarily to:
-- higher interest income resulting from higher average balances of loans
and cash reserves, a shift in the mix of the loan portfolio towards
higher-yielding loans, and higher average interest rates on securities;
and
-- lower provision for credit losses due primarily to a shift in the mix of
the loan portfolio and the resolution of a nonperforming commercial real
estate loan in the second quarter of 2025 that had carried a specific
reserve, partially offset by provision related to loan growth;
partially offset by:
-- higher interest expense for the first nine months of 2025 due primarily
to higher average balances of interest-bearing deposits, partially offset
by lower average rates on deposits;
-- higher salaries and employee benefits due primarily to increased employee
incentive accruals associated with improved financial performance and the
addition of a seasoned lending team with the expansion into Southwest
Virginia in the third quarter of 2025; and
-- higher marketing and advertising expenses related to the Corporation's
strategic marketing initiative, which began in the second half of 2024.
Average loans increased $126.8 million, or 9.0 percent, for the third quarter of 2025 and increased $144.0 million, or 10.6 percent, for the first nine months of 2025, compared to the same periods in 2024, due primarily to growth in the commercial real estate, land acquisition and development, builder lines and construction segments of the loan portfolio. Average deposits increased $143.0 million, or 6.7 percent, for the third quarter of 2025 and increased $144.0 million, or 6.9 percent, for the first nine months of 2025, compared to the same periods in 2024, due primarily to higher balances of time deposits, money market deposits and noninterest-bearing demand deposits.
Average interest-earning asset yields were higher for the third quarter and first nine months of 2025, compared to the same periods of 2024, due primarily to a shift in the mix of the loan portfolio towards higher-yielding loans and higher average interest rates on securities available for sale. Average costs of interest-bearing deposits were lower for the third quarter and first nine months of 2025, compared to the same periods of 2024, due primarily to decreases in interest rates paid on time deposits.
The community banking segment's nonaccrual loans were $1.2 million at September 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 of one residential mortgage relationship in the first quarter of 2025. The community banking segment recorded net reversals of provision for credit losses of $100,000 and $300,000 for the third quarter and first nine months of 2025, compared to provision for credit losses of $700,000 and $1.7 million for the same periods of 2024. At September 30, 2025, the allowance for credit losses decreased to $17.2 million, compared to $17.4 million at December 31, 2024. The allowance for credit losses as a percentage of total loans decreased to 1.11 percent at September 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 and growth in loans with shorter expected lives, which resulted in lower estimated losses over the life of the loan, 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.
Mortgage Banking Segment. The mortgage banking segment reported net income of $641,000 and $2.1 million for the third quarter and first nine months of 2025, respectively, compared to $351,000 and $1.0 million for the same periods of 2024, 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; and
-- lower reversal of provision for indemnifications.
Despite the sustained elevated level of mortgage interest rates, higher home prices and low levels of inventory, mortgage banking segment loan originations increased 6.4 percent and 24.4 percent for the third quarter and first nine months of 2025, respectively, compared to the same periods of 2024. Mortgage loan originations for the mortgage banking segment were $167.0 million for the third quarter of 2025, comprised of $148.2 million home purchases and $18.8 million refinancings, compared to $157.0 million, comprised of $142.0 million home purchases and $15.0 million refinancings, for the same period in 2024. Mortgage loan originations for the mortgage banking segment were $494.3 million for the first nine months of 2025, comprised of $447.1 million home purchases and $47.2 million refinancings, compared to $397.3 million, comprised of $363.0 million home purchases and $34.3 million refinancings, for the same period in 2024. Mortgage loan originations in the third quarter of 2025 decreased $46.5 million compared to the second quarter of 2025 due in part to normal industry seasonal fluctuations. 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.
During the third quarter and first nine months of 2025, the mortgage banking segment recorded net reversals of provision for indemnification losses of $75,000 and $135,000, respectively, compared to net reversals of provision for indemnification losses of $100,000 and $375,000 in the same periods of 2024. The allowance for indemnifications was $1.2 million and $1.3 million at September 30, 2025 and December 31, 2024, respectively. 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.
Consumer Finance Segment. The consumer finance segment reported net income of $231,000 and $1.0 million for the third quarter and first nine months of 2025, compared to $311,000 and $1.1 million for the same periods in 2024, due primarily to:
-- higher provision for credit losses for the first nine months of 2025 due
primarily to higher net charge-offs; and
-- lower interest income resulting from lower average balances of loans,
partially offset by higher loan yields;
partially offset by:
-- lower interest expense allocation on borrowings from the community
banking segment as a result of lower average balances of borrowings; and
-- lower salaries and employee benefits expense due to an effort to reduce
overhead costs.
Average loans decreased $17.4 million, or 3.6 percent, for the third quarter of 2025 and decreased $13.3 million, or 2.8 percent, for the first nine months of 2025, respectively, compared to the same periods in 2024. The consumer finance segment experienced net charge-offs at an annualized rate of 2.51 percent of average total loans for the first nine months of 2025, compared to 2.36 percent for the first nine months of 2024, due primarily to an increase in delinquent loans, repossessions and the average amount charged-off when a loan was uncollectable. At September 30, 2025, total delinquent loans as a percentage of total loans was 4.00 percent, compared to 3.90 percent at December 31, 2024, and 3.49 percent at September 30, 2024.
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 1.88 percent and 1.79 percent of average automobile loans outstanding during the third quarter and first nine months of 2025, respectively, compared to 1.91 percent and 1.70 percent during the same periods during 2024. The allowance for credit losses was $22.3 million at September 30, 2025 and $22.7 million at December 31, 2024. The allowance for credit losses as a percentage of total loans was 4.81 percent at September 30, 2025 compared to 4.86 percent at December 31, 2024. 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 September 30, 2025, the Corporation's uninsured deposits were approximately $686.2 million, or 29.9 percent of total deposits. Excluding intercompany cash holdings and municipal deposits, which are secured with pledged securities, amounts uninsured were approximately $557.4 million, or 24.3 percent of total deposits as of September 30, 2025. 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 $441.4 million and borrowing availability was $612.3 million as of September 30, 2025, which in total exceed uninsured deposits, excluding intercompany cash holdings and secured municipal deposits, by $496.3 million as of September 30, 2025.
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. Short-term borrowings may also include securities sold under agreements to repurchase. Total borrowings decreased to $113.4 million at September 30, 2025 from $122.6 million at December 31, 2024 due primarily to the wind-down of the repurchase agreement program with certain commercial deposit customers during the third quarter of 2025, partially offset by an increase in the Corporation's subordinated debt.
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 third quarter of 2025, the Corporation declared a quarterly cash dividend of 46 cents per share. This dividend, which was paid to shareholders on October 1, 2025, represents a payout ratio of 21.1 percent of earnings per share for the third 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.
Total consolidated equity increased $26.9 million at September 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 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 $12.9 million at September 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.
As of September 30, 2025, the most recent notification from the FDIC categorized C&F Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized under regulations applicable at September 30, 2025, 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 September 30, 2025. 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 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 third quarter and first nine months of 2025, the Corporation did not make any repurchases of its common stock under the 2025 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 $69.50 per share on October 22, 2025. At September 30, 2025, the book value per share of the Corporation was $78.23 and the tangible book value per share was $70.15. 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 may include adjusted net income, adjusted earnings per share, adjusted return on average equity, adjusted return on average assets, return on average tangible common equity (ROTCE), adjusted ROTCE, tangible book value per share, price to tangible book value ratio, and the following fully-taxable equivalent (FTE) measures: interest income on loans-FTE, interest income 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 to the most directly comparable GAAP financial measures is presented below in the "Reconciliation of Certain Non-GAAP Financial Measures" 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, and 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; 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; mortgage loan originations; expectations regarding C&F Bank's regulatory risk-based capital requirement levels; competition; our loan portfolio; our digital services; deposit trends; improving operational efficiencies; retention of qualified loan officers and expectations regarding new mortgage loan originations; 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 in 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, war and other military
conflicts 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
concerns involving liquidity
-- 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
-- the soundness of other financial institutions and any indirect exposure
related to the closing of other financial institutions and their impact
on the broader market through other customers, suppliers and partners, or
that the conditions which resulted in the liquidity concerns experienced
by closed financial institutions may also adversely impact, directly or
indirectly, other financial institutions and market participants with
which the Corporation has commercial or deposit relationships
-- competition from both banks and non-banks, including competition in the
automobile finance and marine and recreational vehicle finance markets
-- 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
-- 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, 2024 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.
C&F Financial Corporation
Selected Financial Information
(dollars in thousands, except for per share data)
(unaudited)
Financial Condition 9/30/2025 12/31/2024 9/30/2024
Interest-bearing deposits
in other banks $ 80,843 $ 49,423 $ 32,507
Investment securities -
available for sale, at
fair value 439,034 418,625 409,045
Loans held for sale, at
fair value 33,478 20,112 44,677
Loans, net:
Community Banking
segment 1,527,809 1,436,226 1,414,576
Consumer Finance segment 440,968 444,085 454,062
Total assets 2,711,292 2,563,374 2,550,904
Deposits 2,298,035 2,170,860 2,135,891
Repurchase agreements - 28,994 28,643
Other borrowings 113,406 93,615 113,683
Total equity 253,887 226,970 227,958
ForThe For The
Quarter Ended Nine Months Ended
------------------------ ------------------------
Results of
Operations 9/30/2025 9/30/2024 9/30/2025 9/30/2024
----------- ----------- --------- -------------
Interest income $ 38,783 $ 36,131 $112,178 $ 103,151
Interest expense 11,609 11,442 33,486 31,476
Provision for
credit losses:
Community
Banking
segment (100) 700 (300) 1,650
Consumer
Finance
segment 3,000 3,000 8,300 8,100
Noninterest
income:
Gains on sales
of loans 1,896 1,825 6,201 4,814
Other 6,948 6,947 20,064 18,774
Noninterest
expenses:
Salaries and
employee
benefits 14,420 13,921 42,749 41,625
Other 9,870 9,170 29,230 26,989
Income tax
expense 1,715 1,250 4,703 3,010
Net income 7,113 5,420 20,275 13,889
Fully-taxable
equivalent (FTE)
amounts(1)
Interest income
on loans-FTE 34,735 33,070 100,929 94,166
Interest income
on
securities-FTE 3,647 2,958 10,523 9,033
Total interest
income-FTE 39,101 36,417 113,086 104,010
Net interest
income-FTE 27,492 24,975 79,600 72,534
________________________
(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."
For the Quarter Ended
----------------------------------------------------------------
9/30/2025 9/30/2024
------------------------------- -------------------------------
Average Income/ Yield/ Average Income/ Yield/
Yield Analysis Balance Expense Rate Balance Expense Rate
-------------------- ----------- ------- --------- ----------- ------- ---------
Assets
Loans:
Community banking
segment(1) $1,538,149 $21,706 5.60% $1,411,337 $19,797 5.58%
Mortgage banking
segment 37,596 625 6.60 40,232 597 5.90
Consumer finance
segment 463,761 12,404 10.61 481,124 12,676 10.48
--------- ------ --------- ------
Total loans 2,039,506 34,735 6.76 1,932,693 33,070 6.81
--------- ------ --------- ------
Securities:
Taxable 338,354 2,391 2.82 318,834 1,828 2.29
Tax-exempt(1) 122,605 1,256 4.10 119,253 1,130 3.79
--------- ------ --------- ------
Total securities 460,959 3,647 3.16 438,087 2,958 2.70
--------- ------ --------- ------
Interest-bearing
deposits in other
banks 74,629 719 3.83 38,756 389 3.99
--------- ------ --------- ------
Total earning assets 2,575,094 39,101 6.03 2,409,536 36,417 6.02
------ ------
Allowance for credit
losses (40,389) (40,879)
Total non-earning
assets 156,558 158,063
--------- ---------
Total assets $2,691,263 $2,526,720
========= =========
Liabilities and
Equity
Interest-bearing
deposits:
Interest-bearing
demand deposits $ 312,095 448 0.57 $ 323,019 540 0.67
Savings and money
market deposit
accounts 545,055 1,778 1.29 472,206 1,127 0.95
Certificates of
deposit 865,439 7,725 3.54 801,669 8,524 4.23
--------- ------ --------- ------
Total
interest-bearing
deposits 1,722,589 9,951 2.29 1,596,894 10,191 2.54
--------- ------ --------- ------
Borrowings:
Repurchase
agreements 11,850 40 1.34 27,207 117 1.72
Other borrowings 113,462 1,618 5.71 93,961 1,134 4.83
--------- ------ --------- ------
Total borrowings 125,312 1,658 5.30 121,168 1,251 4.13
--------- ------ --------- ------
Total
interest-bearing
liabilities 1,847,901 11,609 2.50 1,718,062 11,442 2.65
------ ------
Noninterest-bearing
demand deposits 555,090 537,796
Other liabilities 43,054 48,330
--------- ---------
Total liabilities 2,446,045 2,304,188
Equity 245,218 222,532
--------- ---------
Total liabilities
and equity $2,691,263 $2,526,720
========= =========
Net interest income $27,492 $24,975
====== ======
Interest rate spread 3.53% 3.37%
===== =====
Interest expense to
average earning
assets 1.79% 1.89%
===== =====
Net interest margin 4.24% 4.13%
===== =====
________________________
(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."
For the Nine Months Ended
------------------------------------------------------------------
9/30/2025 9/30/2024
-------------------------------- --------------------------------
Average Income/ Yield/ Average Income/ Yield/
Yield Analysis Balance Expense Rate Balance Expense Rate
-------------------- ----------- -------- --------- ----------- -------- ---------
Assets
Loans:
Community banking
segment(1) $1,501,919 $ 62,562 5.57% $1,357,962 $ 55,671 5.48%
Mortgage banking
segment 34,898 1,696 6.50 30,759 1,411 6.13
Consumer finance
segment 464,487 36,671 10.56 477,768 37,084 10.37
--------- ------- --------- -------
Total loans 2,001,304 100,929 6.74 1,866,489 94,166 6.74
--------- ------- --------- -------
Securities:
Taxable 339,938 6,909 2.71 340,297 5,665 2.22
Tax-exempt(1) 120,653 3,614 3.99 119,931 3,368 3.74
--------- ------- --------- -------
Total securities 460,591 10,523 3.05 460,228 9,033 2.62
--------- ------- --------- -------
Interest-bearing
deposits in other
banks 59,633 1,634 3.66 30,197 811 3.59
--------- ------- --------- -------
Total earning
assets 2,521,528 113,086 5.99 2,356,914 104,010 5.89
------- -------
Allowance for credit
losses (40,759) (40,670)
Total non-earning
assets 156,147 155,935
--------- ---------
Total assets $2,636,916 $2,472,179
========= =========
Liabilities and
Equity
Interest-bearing
deposits:
Interest-bearing
demand deposits $ 319,039 1,524 0.64 $ 326,540 1,569 0.64
Savings and money
market deposit
accounts 519,113 4,513 1.16 477,137 3,262 0.91
Certificates of
deposit 839,431 23,236 3.70 753,114 23,140 4.10
--------- ------- --------- -------
Total
interest-bearing
deposits 1,677,583 29,273 2.33 1,556,791 27,971 2.40
--------- ------- --------- -------
Borrowings:
Repurchase
agreements 21,261 236 1.48 26,774 325 1.62
Other borrowings 102,147 3,977 5.19 91,024 3,180 4.66
--------- ------- --------- -------
Total borrowings 123,408 4,213 4.55 117,798 3,505 3.97
--------- ------- --------- -------
Total
interest-bearing
liabilities 1,800,991 33,486 2.49 1,674,589 31,476 2.51
------- -------
Noninterest-bearing
demand deposits 556,305 533,113
Other liabilities 41,622 45,835
--------- ---------
Total liabilities 2,398,918 2,253,537
Equity 237,998 218,642
--------- ---------
Total liabilities
and equity $2,636,916 $2,472,179
========= =========
Net interest income $ 79,600 $ 72,534
======= =======
Interest rate spread 3.50% 3.38%
===== =====
Interest expense to
average earning
assets 1.78% 1.78%
===== =====
Net interest margin 4.21% 4.11%
===== =====
________________________
(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."
9/30/2025
Funding Sources Capacity Outstanding Available
Unsecured federal funds
agreements $ 75,000 $ -- $ 75,000
Borrowings from FHLB 263,772 40,000 223,772
Borrowings from Federal
Reserve Bank 313,549 -- 313,549
Total $652,321 $ 40,000 $ 612,321
Asset Quality 9/30/2025 12/31/2024
-------------- --------------
Community Banking
Total loans $1,544,979 $1,453,605
Nonaccrual loans $ 1,164 $ 333
Allowance for credit losses (ACL) $ 17,170 $ 17,379
Nonaccrual loans to total loans 0.08% 0.02%
ACL to total loans 1.11% 1.20%
ACL to nonaccrual loans 1,475.09% 5,218.92%
Annualized year-to-date net
charge-offs to average loans 0.01% 0.01%
Consumer Finance
Total loans $ 463,244 $ 466,793
Nonaccrual loans $ 1,327 $ 614
Repossessed assets $ 867 $ 779
ACL $ 22,276 $ 22,708
Nonaccrual loans to total loans 0.29% 0.13%
ACL to total loans 4.81% 4.86%
ACL to nonaccrual loans 1,678.67% 3,698.37%
Annualized year-to-date net
charge-offs to average loans 2.51% 2.62%
For The For The
Quarter Ended Nine Months Ended
------------------------------ ------------------------------
Other
Performance
Data 9/30/2025 9/30/2024 9/30/2025 9/30/2024
-------------- -------------- -------------- --------------
Net Income
(Loss):
Community
Banking $ 7,378 $ 5,337 $ 19,939 $ 13,920
Mortgage
Banking 641 351 2,057 1,021
Consumer
Finance 231 311 996 1,142
Other(1) (1,137) (579) (2,717) (2,194)
--------- --------- --------- ---------
Total $ 7,113 $ 5,420 $ 20,275 $ 13,889
========= ========= ========= =========
Net income
attributable
to C&F
Financial
Corporation $ 7,075 $ 5,389 $ 20,134 $ 13,797
Earnings per
share -
basic and
diluted $ 2.18 $ 1.65 $ 6.22 $ 4.15
Weighted
average
shares
outstanding
- basic and
diluted 3,238,057 3,258,420 3,237,256 3,323,942
Annualized
return on
average
assets 1.06% 0.86% 1.02% 0.75%
Annualized
return on
average
equity 11.60% 9.74% 11.36% 8.47%
Annualized
return on
average
tangible
common
equity(2) 13.07% 11.16% 12.84% 9.74%
Dividends
declared per
share $ 0.46 $ 0.44 $ 1.38 $ 1.32
Mortgage loan
originations
- Mortgage
Banking $ 167,018 $ 156,968 $ 494,291 $ 397,324
Mortgage
loans sold -
Mortgage
Banking 178,035 146,143 481,344 367,449
________________________
(1) Includes results of the holding company that are not allocated to the business segments and elimination of inter-segment activity.
(2) 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."
Market Ratios 9/30/2025 12/31/2024 Market value per share $ 67.20 $ 71.25 Book value per share $ 78.23 $ 70.00 Price to book value ratio 0.86 1.02 Tangible book value per share(1) $ 70.15 $ 61.86 Price to tangible book value ratio(1) 0.96 1.15 Price to earnings ratio (ttm) 8.31 11.86
________________________
(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 9/30/2025 12/31/2024 Requirements(3)
------------ ------------ -----------------
C&F Financial
Corporation(1)
Total risk-based
capital ratio 15.3% 14.1% 8.0%
Tier 1 risk-based
capital ratio 12.2% 11.9% 6.0%
Common equity tier
1 capital ratio 11.1% 10.7% 4.5%
Tier 1 leverage
ratio 10.0% 9.8% 4.0%
C&F Bank(2)
Total risk-based
capital ratio 15.0% 13.5% 8.0%
Tier 1 risk-based
capital ratio 13.7% 12.3% 6.0%
Common equity tier
1 capital ratio 13.7% 12.3% 4.5%
Tier 1 leverage
ratio 11.2% 10.1% 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 September 30, 2025 are estimates and subject to change pending regulatory filings. All ratios at December 31, 2024 are presented as filed.
(3) The ratios presented for minimum capital requirements are those to be considered adequately capitalized.
For The Quarter Ended For The Nine Months Ended
-------------------------- --------------------------
9/30/2025 9/30/2024 9/30/2025 9/30/2024
--------------- ------------ ------------ ------------ ------------
Reconciliation
of Certain
Non-GAAP
Financial
Measures
Return on
Average
Tangible Common
Equity
Average total
equity, as
reported $245,218 $222,532 $237,998 $218,642
Average goodwill (25,191) (25,191) (25,191) (25,191)
Average other
intangible
assets (985) (1,242) (1,049) (1,303)
Average
noncontrolling
interest (538) (573) (702) (670)
------- ------- ------- -------
Average tangible
common equity $218,504 $195,526 $211,056 $191,478
======= ======= ======= =======
Net income $ 7,113 $ 5,420 $ 20,275 $ 13,889
Amortization of
intangibles 63 66 188 196
Net income
attributable to
noncontrolling
interest (38) (31) (141) (92)
------- ------- ------- -------
Net tangible
income
attributable to
C&F Financial
Corporation $ 7,138 $ 5,455 $ 20,322 $ 13,993
======= ======= ======= =======
Annualized
return on
average
equity, as
reported 11.60% 9.74% 11.36% 8.47%
Annualized
return on
average
tangible
common
equity 13.07% 11.16% 12.84% 9.74%
For The Quarter Ended For The Nine Months Ended
------------------------ --------------------------
9/30/2025 9/30/2024 9/30/2025 9/30/2024
------------- ----------- ----------- ----------- -------------
Fully Taxable
Equivalent
Net Interest
Income(1)
Interest
income on
loans $ 34,683 $ 33,021 $ 100,781 $ 94,014
FTE
adjustment 52 49 148 152
------- --- ------ ------- -------
FTE interest
income on
loans $ 34,735 $ 33,070 $ 100,929 $ 94,166
======= === ====== ======= =======
Interest
income on
securities $ 3,381 $ 2,721 $ 9,763 $ 8,326
FTE
adjustment 266 237 760 707
------- --- ------ ------- -------
FTE interest
income on
securities $ 3,647 $ 2,958 $ 10,523 $ 9,033
======= === ====== ======= =======
Total
interest
income $ 38,783 $ 36,131 $ 112,178 $ 103,151
FTE
adjustment 318 286 908 859
------- --- ------ ------- -------
FTE interest
income $ 39,101 $ 36,417 $ 113,086 $ 104,010
======= === ====== ======= =======
Net interest
income $ 27,174 $ 24,689 $ 78,692 $ 71,675
FTE
adjustment 318 286 908 859
------- --- ------ ------- -------
FTE net
interest
income $ 27,492 $ 24,975 $ 79,600 $ 72,534
======= === ====== ======= =======
________________________
(1) Assuming a tax rate of 21%.
9/30/2025 12/31/2024
----------- -------------
Tangible Book Value Per Share
Equity attributable to C&F Financial
Corporation $ 253,283 $ 226,360
Goodwill (25,191) (25,191)
Other intangible assets (959) (1,147)
--------- ---------
Tangible equity attributable to C&F
Financial Corporation $ 227,133 $ 200,022
========= =========
Shares outstanding 3,237,634 3,233,672
Book value per share $ 78.23 $ 70.00
Tangible book value per share $ 70.15 $ 61.86
Contact: Jason Long, CFO and Secretary
(804) 843-2360
(END) Dow Jones Newswires
October 23, 2025 13:00 ET (17:00 GMT)