C&F Financial Corporation Announces Net Income for First Quarter

TOANO, Va., April 24, 2025 (GLOBE NEWSWIRE) -- C&F Financial Corporation (the Corporation) (NASDAQ: CFFI), the holding company for C&F Bank, today reported consolidated net income of $5.4 million for the first quarter of 2025, compared to $3.4 million for the first quarter of 2024. The following table presents selected financial performance highlights for the periods indicated: For The Quarter Ended Consolidated Financial Highlights (unaudited) 3/31/2025 3/31/2024 Consolidated net income (000's) $5,395 $3,435 Earnings per share - basic and diluted $1.66 $1.01 Annualized return on average equity 9.35% 6.33%Annualized return on average tangible common equity1 10.65% 7.30%Annualized return on average assets 0.84% 0.57% ________________________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. Tom Cherry, President and Chief Executive Officer of C&F Financial Corporation, commented, “We are pleased with our first quarter results. Net income increased across all of our business segments compared to the same quarter last year. Both loan and deposit growth at the community banking segment was strong and loan originations at the mortgage banking segment increased when compared to the first quarter of last year. Despite a decrease in the average balance of loans at the consumer finance segment, we were able to increase net income by continuing to focus on efficiencies. Consolidated margins grew slightly as higher cost time deposits continue to reprice downward. Despite the economic uncertainties, we are optimistic about our earnings for 2025.” Key highlights for the first quarter of 2025 are as follows. Community banking segment loans grew $27.6 million, or 7.6 percent annualized, and $139.9 million, or 10.4 percent, compared to December 31, 2024 and March 31, 2024, respectively;Consumer finance segment loans decreased $4.7 million, or 4.0 percent annualized, and $14.0 million, or 2.9 percent, compared to December 31, 2024 and March 31, 2024, respectively;Deposits increased $45.8 million, or 8.4 percent annualized, and $128.7 million, or 6.2 percent, compared to December 31, 2024 and March 31, 2024, respectively;Consolidated annualized net interest margin was 4.16 percent for the first quarter of 2025 compared to 4.09 percent for the first quarter of 2024 and 4.13 percent in the fourth quarter of 2024;The community banking segment recorded provision for credit losses of $100,000 and $500,000 for the first quarters of 2025 and 2024, respectively;The consumer finance segment recorded provision for credit losses of $2.9 million and $3.0 million for the first quarters of 2025 and 2024, respectively;The consumer finance segment experienced net charge-offs at an annualized rate of 2.64 percent of average total loans for the first quarter of 2025, compared to 2.54 percent for the first quarter of 2024; andMortgage banking segment loan originations increased $19.5 million, or 20.6 percent, to $113.8 million for the first quarter of 2025 compared to the first quarter of 2024 and decreased $16.7 million, or 12.8 percent compared to the fourth quarter of 2024. Community Banking Segment. The community banking segment reported net income of $5.4 million for the first quarter of 2025, compared to $4.0 million for the same period of 2024, due primarily to: higher interest income resulting from higher average balances of loans and the effects of higher average interest rates on asset yields; andlower provision for credit losses due primarily to lower loan growth; partially offset by: higher interest expense due primarily to higher average balances of interest-bearing deposits and higher average rates on deposits; andhigher marketing and advertising expenses related to the strategic marketing initiative, which began in the second half of 2024. Average loans increased $165.3 million, or 12.7 percent, for the first quarter of 2025, compared to the same period in 2024, due primarily to growth in the construction, commercial real estate, land acquisition and development and builder lines segments of the loan portfolio. Average deposits increased $131.6 million, or 6.4 percent, for the first quarter of 2025, compared to the same period in 2024, due primarily to higher balance of time deposits and noninterest-bearing demand deposits. Average interest-earning asset yields were higher for the first quarter of 2025, compared to the same period of 2024, due primarily to a shift in the mix of the loan portfolio, renewals of fixed rate loans originated during periods of lower interest rates and purchases of securities available for sale in the overall higher interest rate environment. Average costs of interest-bearing deposits were higher for the first quarter of 2025, compared to the same period of 2024, due primarily to the continued effects of a shift in the mix of deposits with customers seeking higher yielding opportunities as a result of higher interest rates paid on time deposits. The community banking segment’s nonaccrual loans were $1.2 million at March 31, 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 $100,000 in provision for credit losses for the first quarter of 2025, compared to $500,000 for the same period of 2024. At March 31, 2025, the allowance for credit losses increased to $17.5 million, compared to $17.4 million at December 31, 2024, due primarily to growth in the loan portfolio and increased macroeconomic uncertainties. The allowance for credit losses as a percentage of total loans decreased to 1.18 percent at March 31, 2025 from 1.20 percent at December 31, 2024 due primarily to growth in loans with shorter expected lives, which resulted in lower estimated losses over the life of the loan. 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 $431,000 for the first quarter of 2025, compared to $294,000 for the same period 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; partially offset by: higher variable expenses tied to mortgage loan origination volume such as commissions and bonuses, reported in salaries and employee benefits; andlower 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 for the first quarter of 2025 compared to the same period of 2024. Mortgage loan originations for the mortgage banking segment were $113.8 million for the first quarter of 2025, comprised of $12.1 million refinancings and $101.7 million home purchases, compared to $94.3 million, comprised of $7.5 million refinancings and $86.8 million home purchases, for the same period in 2024. Mortgage loan originations in the first quarter of 2025 decreased $16.7 million compared to the fourth quarter of 2024 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 first quarter of 2025, the mortgage banking segment recorded a reversal of provision for indemnification losses of $25,000, compared to a reversal of provision for indemnification losses of $140,000 in the same period of 2024. The allowance for indemnifications was $1.32 million and $1.35 million at March 31, 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. 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 $226,000 for the first quarter of 2025, compared to net loss of $63,000 for the same period in 2024, due primarily to: lower interest expense on borrowings from the community banking segment as a result of lower average balances of borrowings;lower salaries and employee benefits expense due to an effort to reduce overhead costs; andhigher interest income resulting from the effects of higher interest rates on loan yields, partially offset by lower average balances of loans. Average loans decreased $8.3 million, or 1.8 percent, for the first quarter of 2025, compared to the same period in 2024. The consumer finance segment experienced net charge-offs at an annualized rate of 2.64 percent of average total loans for the first quarter of 2025, compared to 2.54 percent for the first quarter of 2024, due primarily to an increase in delinquent loans, repossessions and the average amount charged-off when a loan was uncollectable. At March 31, 2025, total delinquent loans as a percentage of total loans was 3.05 percent, compared to 3.90 percent at December 31, 2024, and 2.78 percent at March 31, 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 1.75 percent of average automobile loans outstanding during the first quarter of 2025, compared to 1.62 percent during the same period during 2024. The allowance for credit losses was $22.5 million at March 31, 2025 and $22.7 million at December 31, 2024. The allowance for credit losses as a percentage of total loans was 4.88 percent at March 31, 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 March 31, 2025, the Corporation’s uninsured deposits were approximately $644.4 million, or 29.1 percent of total deposits. Excluding intercompany cash holdings and municipal deposits, which are secured with pledged securities, amounts uninsured were approximately $496.6 million, or 22.4 percent of total deposits as of March 31, 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 $315.0 million and borrowing availability was $598.7 million as of March 31, 2025, which in total exceed uninsured deposits, excluding intercompany cash holdings and secured municipal deposits, by $417.1 million as of March 31, 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 also include securities sold under agreements to repurchase. Total borrowings decreased to $119.5 million at March 31, 2025 from $122.6 million at December 31, 2024 due primarily to fluctuations in short-term borrowings. 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 2025, the Corporation increased its quarterly cash dividend by 5 percent, to 46 cents per share, compared to the previous quarterly dividend. This dividend, which was paid to shareholders on April 1, 2025, represents a payout ratio of 27.7 percent of earnings per share for the first 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 $8.3 million at March 31, 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 $19.1 million at March 31, 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 March 31, 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 March 31, 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 March 31, 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. In December 2024, the Board of Directors authorized a program, effective January 1, 2025 through December 31, 2025, to repurchase up to $5.0 million of the Corporation’s common stock (the 2025 Repurchase Program). During the first quarter 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 $65.33 per share on April 23, 2025. At March 31, 2025, the book value per share of the Corporation was $72.51 and the tangible book value per share was $64.39. 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 four commercial loan offices located throughout eastern and central 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. 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. Forward-Looking Statements. This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on the beliefs of the Corporation’s management, as well as assumptions made by, and information currently available to, the Corporation’s management, and reflect management’s current views with respect to certain events that could have an impact on the Corporation’s future financial performance. These statements, including without limitation statements made in Mr. Cherry’s quote and statements regarding future interest rates and conditions in the Corporation’s industries and markets, relate to expectations concerning matters that are not historical fact, may express “belief,” “intention,” “expectation,” “potential” and similar expressions, and may use the words “believe,” “expect,” “anticipate,” “estimate,” “plan,” “may,” “might,” “will,” “intend,” “target,” “should,” “could,” or similar expressions. These statements are inherently uncertain, and there can be no assurance that the underlying assumptions will prove to be accurate. Actual results could differ materially from those anticipated or implied by such statements. Forward-looking statements in this release may include, without limitation, 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 and the anticipated effects thereof, changes in interest rates and the effects thereof on net interest income, mortgage loan originations, expectations regarding C&F Bank’s regulatory risk-based capital requirement levels, 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, the effect of future market and industry trends, the effects of future interest rate fluctuations, cybersecurity risks, and inflation. Factors that could have a material adverse effect on the operations and future prospects of the Corporation include, but are not limited to, changes in: interest rates, such as volatility in short-term interest rates or yields on U.S. Treasury bonds, increases in interest rates following actions by the Federal Reserve and increases or volatility in mortgage interest ratesgeneral business conditions, as well as conditions within the financial marketsgeneral economic conditions, including unemployment levels, inflation rates, supply chain disruptions and slowdowns in economic growthgeneral 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 eventsaverage loan yields and average costs of interest-bearing deposits and borrowingsfinancial services industry conditions, including bank failures or concerns involving liquiditylabor market conditions, including attracting, hiring, training, motivating and retaining qualified employeesthe legislative/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 CFPBmonetary 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 marketsdemand for financial services in the Corporation’s market areathe value of securities held in the Corporation’s investment portfoliosthe quality or composition of the loan portfolios and the value of the collateral securing those loansthe inventory level, demand and fluctuations in the pricing of used automobiles, including sales prices of repossessed vehiclesthe level of automobile loan delinquencies or defaults and our ability to repossess automobiles securing delinquent automobile finance installment contractsthe level of net charge-offs on loans and the adequacy of our allowance for credit lossesthe level of indemnification losses related to mortgage loans solddemand for loan productsdeposit flowsthe strength of the Corporation’s counterpartiesthe availability of lines of credit from the FHLB and other counterpartiesthe 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 relationshipscompetition from both banks and non-banks, including competition in the non-prime automobile finance markets and marine and recreational vehicle finance marketsservices provided by, or the level of the Corporation’s reliance upon third parties for key servicesthe commercial and residential real estate markets, including changes in property valuesthe demand for residential mortgages and conditions in the secondary residential mortgage loan marketsthe Corporation’s technology initiatives and other strategic initiativesthe Corporation’s branch expansion, relocation and consolidation planscyber threats, attacks or eventsC&F Bank’s product offeringsaccounting principles, policies and guidelines, and elections by the Corporation thereunder. These risks and uncertainties should be considered in evaluating the forward-looking statements contained herein, and readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date of this release. For additional information on risk factors that could affect the forward-looking statements contained herein, see the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2024 and other reports filed with the SEC. The Corporation undertakes no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise. C&F Financial CorporationSelected Financial Information(dollars in thousands, except for per share data)(unaudited) Financial Condition 3/31/2025 12/31/2024 3/31/2024 Interest-bearing deposits in other banks $62,490 $49,423 $39,303 Investment securities - available for sale, at fair value 431,513 418,625 430,421 Loans held for sale, at fair value 27,278 20,112 22,622 Loans, net: Community Banking segment 1,463,679 1,436,226 1,324,690 Consumer Finance segment 439,604 444,085 452,537 Total assets 2,612,530 2,563,374 2,469,751 Deposits 2,216,654 2,170,860 2,087,932 Repurchase agreements 25,909 28,994 27,803 Other borrowings 93,546 93,615 93,772 Total equity 235,271 226,970 216,949 For The Quarter Ended Results of Operations3/31/2025 3/31/2024 Interest income$35,988 $32,708 Interest expense 10,978 9,550 Provision for credit losses: Community Banking segment 100 500 Consumer Finance segment 2,900 3,000 Noninterest income: Gains on sales of loans 1,847 1,288 Other 5,726 6,204 Noninterest expenses: Salaries and employee benefits 13,483 14,252 Other 9,576 8,898 Income tax expense 1,129 565 Net income 5,395 3,435 Fully-taxable equivalent (FTE) amounts1 Interest income on loans-FTE 32,428 29,636 Interest income on securities-FTE 3,346 3,098 Total interest income-FTE 36,276 32,993 Net interest income-FTE 25,298 23,443 ________________________1For 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 3/31/2025 3/31/2024 Average Income/ Yield/ Average Income/ Yield/ Yield Analysis Balance Expense Rate Balance Expense Rate Assets Securities: Taxable $339,450 $2,193 2.58%$365,244 $1,980 2.17%Tax-exempt 119,033 1,153 3.87 120,920 1,118 3.70 Total securities 458,483 3,346 2.92 486,164 3,098 2.55 Loans: Community banking segment 1,467,555 19,966 5.52 1,302,260 17,331 5.35 Mortgage banking segment 20,968 339 6.56 17,700 281 6.39 Consumer finance segment 465,526 12,123 10.56 473,848 12,024 10.21 Total loans 1,954,049 32,428 6.73 1,793,808 29,636 6.64 Interest-bearing deposits in other banks 55,830 502 3.65 28,417 259 3.67 Total earning assets 2,468,362 36,276 5.95 2,308,389 32,993 5.75 Allowance for credit losses (40,605) (40,292) Total non-earning assets 154,554 156,800 Total assets $2,582,311 $2,424,897 Liabilities and Equity Interest-bearing deposits: Interest-bearing demand deposits $332,341 600 0.67 $335,570 553 0.66 Savings and money market deposit accounts 489,217 1,205 1.00 484,645 1,061 0.88 Certificates of deposit 821,949 7,964 3.93 705,167 6,916 3.94 Total interest-bearing deposits 1,643,507 9,769 2.40 1,525,382 8,530 2.25 Borrowings: Repurchase agreements 28,192 112 1.59 27,997 111 1.59 Other borrowings 93,597 1,097 4.69 78,445 909 4.64 Total borrowings 121,789 1,209 3.97 106,442 1,020 3.83 Total interest-bearing liabilities 1,765,296 10,978 2.51 1,631,824 9,550 2.35 Noninterest-bearing demand deposits 545,346 531,885 Other liabilities 40,874 44,125 Total liabilities 2,351,516 2,207,834 Equity 230,795 217,063 Total liabilities and equity $2,582,311 $2,424,897 Net interest income $25,298 $23,443 Interest rate spread 3.44% 3.40%Interest expense to average earning assets 1.79% 1.66%Net interest margin 4.16% 4.09% 3/31/2025Funding Sources Capacity Outstanding AvailableUnsecured federal funds agreements $75,000 $— $75,000Borrowings from FHLB 248,508 40,000 208,508Borrowings from Federal Reserve Bank 315,221 — 315,221Total $638,729 $40,000 $598,729 Asset Quality 3/31/2025 12/31/2024 Community Banking Total loans $1,481,190 $1,453,605 Nonaccrual loans $1,189 $333 Allowance for credit losses (ACL) $17,511 $17,379 Nonaccrual loans to total loans 0.08% 0.02%ACL to total loans 1.18% 1.20%ACL to nonaccrual loans 1,472.75% 5,218.92%Annualized year-to-date net charge-offs to average loans 0.01% 0.01% Consumer Finance Total loans $462,136 $466,793 Nonaccrual loans $975 $614 Repossessed assets $976 $779 ACL $22,532 $22,708 Nonaccrual loans to total loans 0.21% 0.13%ACL to total loans 4.88% 4.86%ACL to nonaccrual loans 2,310.97% 3,698.37%Annualized year-to-date net charge-offs to average loans 2.64% 2.62% For The Quarter EndedOther Performance Data3/31/2025 3/31/2024Net Income (Loss): Community Banking$5,445 $4,012 Mortgage Banking 431 294 Consumer Finance 226 (63)Other1 (707) (808)Total$5,395 $3,435 Net income attributable to C&F Financial Corporation$5,368 $3,401 Earnings per share - basic and diluted$1.66 $1.01 Weighted average shares outstanding - basic and diluted 3,234,935 3,370,934 Annualized return on average assets 0.84% 0.57%Annualized return on average equity 9.35% 6.33%Annualized return on average tangible common equity2 10.65% 7.30%Dividends declared per share$0.46 $0.44 Mortgage loan originations - Mortgage Banking$113,750 $94,346 Mortgage loans sold - Mortgage Banking 106,431 86,079 ________________________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 Ratios3/31/2025 12/31/2024Market value per share$67.39 $71.25 Book value per share$72.51 $70.00 Price to book value ratio 0.93 1.02 Tangible book value per share1$64.39 $61.86 Price to tangible book value ratio1 1.05 1.15 Price to earnings ratio (ttm) 11.16 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 CapitalCapital Ratios 3/31/2025 12/31/2024 Requirements3C&F Financial Corporation1 Total risk-based capital ratio 14.1% 14.1% 8.0%Tier 1 risk-based capital ratio 11.9% 11.9% 6.0%Common equity tier 1 capital ratio 10.8% 10.7% 4.5%Tier 1 leverage ratio 9.9% 9.8% 4.0% C&F Bank2 Total risk-based capital ratio 13.7% 13.5% 8.0%Tier 1 risk-based capital ratio 12.4% 12.3% 6.0%Common equity tier 1 capital ratio 12.4% 12.3% 4.5%Tier 1 leverage ratio 10.3% 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 March 31, 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 3/31/2025 3/31/2024Reconciliation of Certain Non-GAAP Financial Measures Return on Average Tangible Common Equity Average total equity, as reported $230,795 $217,063 Average goodwill (25,191) (25,191)Average other intangible assets (1,118) (1,366)Average noncontrolling interest (637) (649)Average tangible common equity $203,849 $189,857 Net income $5,395 $3,435 Amortization of intangibles 62 65 Net income attributable to noncontrolling interest (27) (34)Net tangible income attributable to C&F Financial Corporation $5,430 $3,466 Annualized return on average equity, as reported 9.35% 6.33%Annualized return on average tangible common equity 10.65% 7.30% For The Quarter Ended 3/31/2025 3/31/2024Fully Taxable Equivalent Net Interest Income1 Interest income on loans $32,382 $29,586 FTE adjustment 46 50 FTE interest income on loans $32,428 $29,636 Interest income on securities $3,104 $2,863 FTE adjustment 242 235 FTE interest income on securities $3,346 $3,098 Total interest income $35,988 $32,708 FTE adjustment 288 285 FTE interest income $36,276 $32,993 Net interest income $25,010 $23,158 FTE adjustment 288 285 FTE net interest income $25,298 $23,443 ____________________1 Assuming a tax rate of 21%. 3/31/2025 12/31/2024Tangible Book Value Per Share Equity attributable to C&F Financial Corporation $234,634 $226,360 Goodwill (25,191) (25,191)Other intangible assets (1,084) (1,147)Tangible equity attributable to C&F Financial Corporation $208,359 $200,022 Shares outstanding 3,235,781 3,233,672 Book value per share $72.51 $70.00 Tangible book value per share $64.39 $61.86 Contact: Jason Long, CFO and Secretary(804) 843-2360

C&F Financial Corporation Announces Net Income for First Quarter

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