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)