CFFI

Shares of C&F Financial Corporation CFFI have gained 2.8% since reporting results for the second quarter of 2026. This compares with the S&P 500 index’s 0.1% return over the same time frame. Over the past month, the stock has declined 2.4% compared with the S&P 500’s 1.7% fall. C&F Financial reported adjusted net income of $7.9 million for the second quarter of 2026, up 1.5% from $7.8 million in the year-ago quarter. Adjusted earnings per share increased to $2.40 from $2.37 in the prior-year period. For the first six months of 2026, consolidated net income rose 17.2% to $15.4 million, or $4.71 per share, from $13.2 million, or $4.03 per share, in the comparable period. Adjusted net income, which excludes the impacts of the Bearing equity interest sale and securities portfolio restructuring, increased 1.5% year over year to $7.9 million in the second quarter and 11.5% to $14.7 million for the first half of 2026. C&F Financial Corporation price-consensus-eps-surprise-chart | C&F Financial Corporation Quote C&F Financial benefited from growth across key banking operations, particularly within its community banking and mortgage banking segments. Community banking segment loans increased $65.9 million, or 8.3% annualized, during the second quarter and rose $125.9 million, or 8.2%, from June 30, 2025. Deposits increased $109 million, or 4.8%, from the prior-year period to $2.37 billion as of June 30, 2026. The company’s consolidated net interest margin expanded to 4.41% in the second quarter of 2026 from 4.27% in the prior-year quarter and 4.27% in the first quarter of 2026. Higher average balances of loans, securities and cash reserves, along with improved securities yields, supported net interest income growth. Net interest income increased to $29.1 million from $26.5 million in the year-ago quarter. Mortgage banking operations also contributed to the company’s performance, with loan originations increasing 9.5% year over year to $233.7 million. The improvement reflected stronger purchase and refinancing activity amid a more favorable mortgage interest rate environment. Mortgage banking segment net income increased to $1.1 million from $985,000 in the prior-year quarter. The community banking segment remained the primary earnings contributor, generating $8.2 million in net income compared with $7.1 million in the second quarter of 2025. Results benefited from higher interest income and an $8.3-million pre-tax gain from the sale of the company’s equity interest in Bearing Insurance Group. These benefits were partially offset by a $7.1-million pre-tax loss from restructuring a portion of the securities portfolio and higher employee-related expenses. The consumer finance segment posted net income of $538,000, largely unchanged from $539,000 in the prior-year quarter. The segment faced pressure from higher provision for credit losses due to increased net charge-offs. Consumer finance loans declined $4.8 million, or 1%, from June 30, 2025, primarily due to the continued runoff of marine and recreational vehicle loans. President and CEO Tom Cherry said that strong loan growth in community banking, increased mortgage originations and margin expansion supported adjusted earnings during the quarter and the first half of 2026. Management also highlighted ongoing strategic initiatives, including expansion into Southwest Virginia and the restructuring of the securities portfolio, which are expected to support future performance. The company continued expanding its Virginia footprint during the quarter. Following the opening of a loan production office in Roanoke in 2025, C&F Financial opened a retail branch in Roanoke and announced the hiring of a veteran lender in Lynchburg, VA, in July 2026. C&F Financial maintained a strong balance sheet while continuing to support loan growth. Community banking non-accrual loans stood at $1.2 million as of June 30, 2026, compared with $1.1 million at the end of 2025. The allowance for credit losses was $17.6 million, or 1.06% of the total loans, down from 1.10% as of Dec. 31, 2025. The company’s consumer finance portfolio continued to experience higher credit costs, with annualized net charge-offs reaching 2.60% of average total loans during the first six months of 2026 compared with 2.42% in the prior-year period. However, total delinquent loans improved to 3.56% of the total loans from 4.38% as of Dec. 31, 2025. C&F Financial also maintained a strong capital position. Total equity increased $16 million from Dec. 31, 2025, while C&F Bank remained categorized as well-capitalized under regulatory requirements. The company declared a quarterly cash dividend of 48 cents per share during the second quarter. During the second quarter of 2026, C&F Financial completed the sale of its membership interest in Bearing Insurance Group, generating a pre-tax gain of $8.3 million. Following the transaction, the company executed a securities portfolio restructuring, selling securities with a book value of $72.6 million and purchasing $67.8 million of securities with higher weighted average yields. Management expects the restructuring to support its performance by improving portfolio positioning. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report C&F Financial Corporation (CFFI): Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

TOANO, Va., July 23, 2026 (GLOBE NEWSWIRE) -- C&F Financial Corporation (the Corporation) (NASDAQ: CFFI), the holding company for C&F Bank, today reported consolidated net income of $8.6 million for the second quarter of 2026, an increase of 11.1 percent, compared to $7.8 million for the second quarter of 2025. The Corporation reported consolidated net income of $15.4 million for the first six months of 2026, an increase of 17.2 percent, compared to $13.2 million for the first six months of 2025. Included in net income for the second quarter and first six months of 2026 were the effects of the sale of an equity interest in Bearing Insurance Group, LLC (the “Bearing equity interest”), resulting in a pre-tax gain of $8.3 million, and a securities portfolio restructuring (the “Portfolio Restructuring”), which resulted in a pre-tax loss of $7.1 million. Adjusted net income, a non-GAAP measure, increased $116,000, or 1.5 percent, and $1.5 million, or 11.5 percent, for the second quarter and first six months of 2026, respectively, compared to the same periods of 2025, which excludes the effects of the items mentioned above. The following table presents selected financial performance highlights for the periods indicated: ________________________ “We are pleased with our second quarter results,” said Tom Cherry, President and Chief Executive Officer of C&F Financial Corporation. “Strong loan growth in our community banking segment, increased mortgage originations in our mortgage banking segment, and margin expansion contributed to solid adjusted earnings for the quarter and first half of the year. In addition, our strategic initiatives to expand our geographic footprint into Southwest Virginia and restructure our securities portfolio are already generating positive results, and we expect these initiatives to continue supporting our performance over time.” Key highlights for the second quarter and first six months of 2026 are as follows. Community banking segment loans grew $65.9 million, or 8.3 percent annualized, and $125.9 million, or 8.2 percent, compared to December 31, 2025 and June 30, 2025, respectively; Consumer finance segment loans decreased $7.7 million, or 3.3 percent annualized, and $4.8 million, or 1.0 percent, compared to December 31, 2025 and June 30, 2025, respectively; Deposits increased $19.6 million, or 1.7 percent annualized, and $109.0 million, or 4.8 percent, compared to December 31, 2025 and June 30, 2025, respectively. A portion of the increases in deposits compared to June 30, 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 $20.6 million at June 30, 2025; Consolidated annualized net interest margin was 4.41 percent for the second quarter of 2026 compared to 4.27 percent for the second quarter of 2025 and 4.27 percent for the first quarter of 2026; The consumer finance segment experienced net charge-offs at an annualized rate of 2.21 percent and 2.60 percent of average total loans for the second quarter and first six months of 2026, respectively, compared to 2.19 percent and 2.42 percent for the same periods of 2025 and 2.98 percent for the first quarter of 2026; Mortgage banking segment loan originations increased $20.2 million, or 9.5 percent, to $233.7 million for the second quarter of 2026 compared to the second quarter of 2025; During the second quarter of 2026, the community banking segment completed the sale of its membership interest in Bearing, resulting in a pre-tax gain of $8.3 million. Following the sale of Bearing, the community banking segment executed a strategic restructuring of a portion of its securities portfolio, resulting in a pre-tax loss of $7.1 million. The community banking segment sold securities with a book value of $72.6 million and purchased approximately $67.8 million of securities; Following the 2025 opening of a loan production office in Roanoke, the community banking segment continued its growth in Southwest Virginia with the opening of a retail branch in Roanoke; and The Corporation continued its expansion into the western part of Virginia with the July 2026 announcement of the hiring of a veteran lender in Lynchburg, Virginia. Community Banking Segment. The community banking segment reported net income of $8.2 million and $15.3 million for the second quarter and first six months of 2026, respectively, compared to $7.1 million and $12.6 million for the same periods of 2025 due primarily to: higher interest income resulting from higher average balances of loans, securities and cash reserves and higher average interest rates on securities; and a pre-tax gain of $8.3 million on the sale of the Bearing equity interest in the second quarter of 2026, reported in investment income from other equity interests; 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, annual compensation adjustments, and increased employee incentive accruals associated with improved financial performance; a strategic restructuring of a portion of its securities portfolio in the second quarter of 2026, which resulted in a pre-tax loss of $7.1 million, reported in net loss on sales of available for sale securities; and higher provision for losses due primarily to the reversal of a specific reserve in the second quarter of 2025 upon the resolution of a nonperforming commercial real estate loan. Adjusted net income for the community banking segment, which excludes the effects of the sale of the Bearing equity interest and the Portfolio Restructuring, was $7.4 million and $14.5 million for the second quarter and first six months of 2026, respectively, compared to $7.1 million and $12.6 million for the same periods in 2025. Adjusted net income for the community banking segment increased $314,000 and $2.0 million for the second quarter and first six months of 2026, respectively, compared to the same periods in 2025 due primarily to the items discussed above. Average loans increased $132.2 million, or 8.8 percent, for the second quarter of 2026 and increased $133.7 million, or 9.0 percent, for the first six months of 2026 compared to the same periods of 2025 due primarily to growth in the commercial real estate and land acquisition and development segments of the loan portfolio. Average deposits increased $149.4 million, or 6.7 percent, for the second quarter of 2026 and increased $164.9 million, or 7.5 percent, for the first six months of 2026 compared to the same periods of 2025 due primarily to higher balances of time deposits and savings and money market 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 those repurchase agreements was $23.9 million during the second quarter of 2025. Average interest-earning asset yields were higher for the second quarter and first six months of 2026 compared to the same periods of 2025 due primarily to higher average interest rates on securities available for sale. In the Portfolio Restructuring, the community banking segment sold $72.6 million in book value of securities with a weighted average yield of 1.40% and representing approximately 14.7% of the entire securities portfolio, and purchased approximately $67.8 million of securities with a weighted average yield of 4.70%. Average costs of interest-bearing deposits were lower for the second quarter and the first six months of 2026 compared to the same periods of 2025 due primarily to a decrease in average interest rates paid on time deposits. The community banking segment’s nonaccrual loans were $1.2 million at June 30, 2026 and $1.1 million at December 31, 2025. The community banking segment recorded provision for credit losses of $150,000 and $450,000 for the second quarter and first six months of 2026, respectively, compared to net reversals of provision for credit losses of $300,000 and $200,000 for the same periods of 2025. At June 30, 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 1.06 percent at June 30, 2026 from 1.10 percent at December 31, 2025 due primarily to changes in the forecast of key credit loss model assumptions, which includes the forecast of the national unemployment rate derived from the Federal Open Market Committee of the Federal Reserve Board. 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 $1.1 million and $2.0 million for the second quarter and first six months of 2026, respectively, compared to $985,000 and $1.4 million for the same periods 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, and higher loan processing and collection expenses. Mortgage banking segment loan originations increased 9.5 percent and 26.3 percent for the second quarter and first six months of 2026, respectively, compared to the same periods of 2025 as the mortgage interest rate environment was generally more favorable during the 2026 periods than the comparable periods of 2025, which led to an increase in both purchases and refinancings. Mortgage loan originations for the mortgage banking segment were $233.7 million for the second quarter of 2026, comprised of $209.3 million home purchases and $24.4 million refinancings, compared to $213.5 million for the second quarter of 2025, comprised of $197.2 million home purchases and $16.3 million refinancings. Mortgage loan originations for the mortgage banking segment were $413.3 million for the first six months of 2026, comprised of $351.8 million home purchases and $61.5 million refinancings, compared to $327.3 million for the first six months of 2025, comprised of $298.9 million home purchases and $28.4 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 $969,000 and $1.8 million for the second quarter and first six months of 2026, respectively, compared to $762,000 and $1.3 million for the same periods of 2025 due primarily to increased mortgage loan volume in the industry. During the second quarter and first six months of 2026, the mortgage banking segment recorded net reversals of provision for indemnification losses of $25,000 and $60,000, respectively, compared to net reversals of provision for indemnification losses of $35,000 and $60,000 in the same periods of 2025. The allowance for indemnifications was $1.1 million and $1.2 million at June 30, 2026 and December 31, 2025, respectively. 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 $538,000 and $457,000 for the second quarter and first six months of 2026, respectively, compared to net income of $539,000 and $765,000 for the same periods of 2025 due primarily to: higher provision for credit losses due primarily to higher net charge-offs; partially offset by: lower interest expense allocation on borrowings from the community banking segment as a result of lower average interest rates; Average loans decreased $4.7 million, or 1.0 percent, for the second quarter of 2026 and decreased $2.9 million, or less than one percent, for the first six months of 2026, compared to the same periods 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 time, subject to normal repayment activity and credit performance. The consumer finance segment experienced net charge-offs at an annualized rate of 2.60 percent of average total loans for the first six months of 2026 compared to 2.42 percent for the first six months of 2025 due primarily to a mix shift in the portfolio as the marine and recreational vehicle loans balance continued to decrease. At June 30, 2026, total delinquent loans as a percentage of total loans was 3.56 percent compared to 4.38 percent at December 31, 2025 and 3.81 percent at June 30, 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. Average amounts of payment deferrals of automobile loans on a monthly basis, which are not included in delinquent loans, were 1.40 percent and 1.37 percent of average automobile loans outstanding during the second quarter and first six months of 2026, respectively, compared to 1.73 percent and 1.74 percent during the same periods of 2025 and 1.34 percent during the first quarter of 2026. The allowance for credit losses was $22.1 million, or 4.83 percent of total loans, at June 30, 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 June 30, 2026, the Corporation’s uninsured deposits were approximately $726.4 million, or 30.7 percent of total deposits. Excluding intercompany cash holdings and municipal deposits, which are secured with pledged securities, amounts uninsured were approximately $560.9 million, or 23.7 percent of total deposits as of June 30, 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 $401.9 million and borrowing availability was $669.8 million as of June 30, 2026, which in total exceed uninsured deposits, excluding intercompany cash holdings and secured municipal deposits, by $510.8 million as of June 30, 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 increased to $118.2 million at June 30, 2026 from $113.3 million at December 31, 2025 due primarily to an increase in FHLB advances during the first six months of 2026 that were used to help fund loan growth. 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 second quarter of 2026, the Corporation declared a quarterly cash dividend of 48 cents per share. This dividend, which was paid to shareholders on July 1, 2026, represents a payout ratio of 18.3 percent of earnings per share for the second 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 $16.0 million at June 30, 2026 compared to December 31, 2025 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 $6.7 million at June 30, 2026 compared to $10.2 million at December 31, 2025 due primarily to the Portfolio Restructuring in the second quarter of 2026. As of June 30, 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 June 30, 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 June 30, 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 second quarter of 2026, the Corporation repurchased 4,095 shares, or $312,000 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 $78.12 per share on July 22, 2026. At June 30, 2026, the book value per share of the Corporation was $85.46 and the tangible book value per share was $77.45. 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 32 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 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 adjusted net income, adjusted earnings per share, adjusted return on average assets, adjusted return on average equity, net tangible income attributable to the Corporation, 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 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; the securities Portfolio Restructuring, including the anticipated benefits therefrom; expected impact of unrealized losses on earnings and regulatory capital of the Corporation or C&F Bank; mortgage loan originations; competition; our loan portfolio; our digital services; the adoption of artificial intelligence; improving operational efficiencies; 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. ________________________ ________________________ _______________________ ________________________ ________________________ _______________ ________________

Shares of C&F Financial Corporation CFFI have declined 0.6% since reporting results for the first quarter of 2026, underperforming the S&P 500 index’s 0.4% return. Over the past month, however, the stock has risen 4%, though it still lagged the broader market’s 13.5% advance, indicating relatively muted investor enthusiasm despite the company’s latest quarterly results. C&F Financial reported consolidated net income of $6.8 million for the first quarter of 2026, up 26% from $5.4 million in the year-ago period. Earnings per share rose to $2.08 from $1.66, reflecting a 25% year-over-year improvement. Profitability metrics also strengthened, with return on average assets increasing to 0.97% from 0.84% and return on average equity rising to 10.19% from 9.35%. The improvement in earnings was supported by higher net interest income, which rose to $27.7 million from $25 million, and by growth in non-interest income. C&F Financial Corporation price-consensus-eps-surprise-chart | C&F Financial Corporation Quote Performance across business segments was mixed. The community banking segment remained the primary earnings driver, reporting net income of $7.1 million, up from $5.4 million a year earlier. This growth was fueled by higher interest income due to increased loan balances and improved yields. Average loans in this segment rose 9.2% year over year, while average deposits grew 8.2%. The mortgage banking segment also delivered strong results, with net income increasing to $910,000 from $431,000 in the prior-year quarter. Loan originations surged 57.9% year over year to $179.6 million, driven by more favorable mortgage rates and increased refinancing activity. In contrast, the consumer finance segment posted a net loss of $81,000 against net income of $226,000 a year ago. This decline reflected higher credit loss provisions and elevated charge-offs, partially offset by improved loan yields. The company continued to expand its balance sheet, with total assets reaching $2.81 billion as of March 31, 2026, up from $2.77 billion at the end of 2025. Total deposits increased to $2.40 billion, reflecting both organic growth and the effects of prior funding strategy adjustments. Loan growth remained solid, particularly in the community banking segment, where loans increased by $133.2 million, or 9%, from the prior-year quarter. However, consumer finance loans declined slightly as the company continued winding down its marine and recreational vehicle lending program. The net interest margin improved to 4.27% from 4.16% a year earlier, supported by higher yields on earning assets and lower costs of interest-bearing deposits. Non-interest income also grew to $8.6 million from $7.6 million, aided by higher gains on loan sales and increased mortgage-related fees. On the expense side, non-interest expenses rose to $24.3 million from $23.1 million due to higher salaries, data processing costs and loan-related expenses. Management attributed the quarter’s performance to broad-based growth across core operations. CEO Tom Cherry highlighted that stronger results in community and mortgage banking more than offset weaker performance in consumer finance. He pointed to solid loan and deposit growth, a significant increase in mortgage originations, and an improved net interest margin as the key contributors to earnings growth. At the same time, management noted emerging macroeconomic risks, including geopolitical tensions and potential impacts on interest rates and energy prices. These uncertainties could influence future operating conditions, particularly in credit quality and funding costs. Credit trends showed some signs of pressure, particularly in the consumer finance portfolio. Net charge-offs in this segment rose to an annualized rate of 2.98% from 2.64% a year earlier, reflecting increased delinquencies and repossessions. Despite this, overall credit quality remained stable in the community banking segment, with non-accrual loans unchanged at $1.1 million. The company maintained its allowance for credit losses at levels management considers adequate, though it acknowledged that further deterioration could lead to higher provisions. C&F Financial maintained strong capital and liquidity positions during the quarter. The bank remained well capitalized under regulatory standards, and available liquidity exceeded uninsured deposit levels. The company also increased its quarterly dividend 4% to 48 cents per share and repurchased $309,000 of stock under its 2026 buyback program. These actions reflect confidence in earnings stability and capital strength. In the first quarter, the company continued executing strategic initiatives, including expansion into Southwest Virginia, which contributed to higher personnel costs but supported loan growth. Additionally, the planned runoff of the marine and recreational vehicle loan portfolio in the consumer finance segment remained underway, aligning with the company’s focus on optimizing portfolio mix and risk profile. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report C&F Financial Corporation (CFFI): Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

TOANO, Va., April 23, 2026 (GLOBE NEWSWIRE) -- C&F Financial Corporation (the Corporation) (NASDAQ: 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: ________________________ “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. ________________________ ________________________ ________________________ ________________________ ________________

Shares of C&F Financial Corporation CFFI have gained 5.1% since reporting results for the fourth quarter of 2025. This compares with the S&P 500 index’s 0.1% decline over the same time frame. Over the past month, the stock has gained 8.3% compared with the S&P 500’s 0.8% return. C&F Financial reported consolidated net income of $6.7 million for the fourth quarter of 2025, up 11% from $6 million in the year-ago quarter. For the year ended Dec. 31, 2025, net income rose 36% to $27 million from $19.9 million in 2024. Earnings per share for the fourth quarter increased to $2.07 from $1.87 a year earlier, while full-year EPS climbed to $8.29 from $6.01. Profitability metrics also improved on an annual basis, with return on average assets rising to 1.01% from 0.80% and return on average equity increasing to 11.11% from 9.02%. C&F Financial Corporation price-consensus-eps-surprise-chart | C&F Financial Corporation Quote Balance sheet growth remained a notable theme during the period. Total assets increased to $2.77 billion as of Dec. 31, 2025, compared with $2.56 billion a year earlier. Deposits grew 8.1% year over year to $2.35 billion, reflecting higher balances across time deposits, savings, money market and non-interest-bearing accounts. Loan growth was led by the community banking segment, where loans increased by $136.7 million, or 9.4%, from that reported on Dec. 31, 2024. Average loans for the consolidated company rose 10% for the year, whereas average deposits increased 7.2% year over year. Net interest income on a fully taxable equivalent basis increased to $107.4 million for the year, up from $97.9 million in 2024. This improvement was supported by higher yields on loans and securities and balance sheet growth. The consolidated net interest margin expanded to 4.21% for the year from 4.12% in the prior year. Asset quality indicators remained relatively stable, with community banking non-accrual loans at 0.07% of total loans at the year-end, up from 0.02% a year earlier, while the allowance for credit losses declined slightly as a percentage of total loans. Management emphasized the benefits of a diversified business model in driving improved performance during 2025. The chief executive officer highlighted growth in loans and deposits in the community banking segment, increased wealth advisory revenues, higher mortgage loan originations and efforts to enhance operational efficiencies in the consumer finance segment as key contributors to earnings growth. Management also pointed to improvement in the net interest margin, strong liquidity and capital positions, and solid asset quality as indicators of the company’s overall financial strength. Higher interest income was a primary driver of the year-over-year earnings increase, supported by growth in average loan balances and higher yields on securities. These gains were partially offset by higher interest expenses, reflecting increased balances of interest-bearing deposits, as well as higher non-interest expenses. Salaries and employee benefits rose due to incentive accruals tied to improved performance and the addition of a seasoned lending team as the company expanded into Southwest Virginia. Marketing and advertising expenses also increased in connection with a strategic marketing initiative launched in the second half of 2024. Provision for credit losses had a mixed impact across segments. The community banking segment recorded a net reversal of provision for credit losses for the year compared with a provision in 2024 due to the resolution of a non-performing commercial real estate loan. In contrast, the consumer finance segment recorded provisions consistent with the prior year, reflecting ongoing credit costs in that portfolio. Mortgage banking results benefited from higher loan originations and increased gains on sales of loans despite elevated mortgage rates and constrained housing inventory. Management reiterated its commitment to executing a strategic plan focused on leveraging core strengths, expanding in targeted markets, and maintaining disciplined balance sheet and risk management practices. The company signaled an ongoing emphasis on expanding loans, maintaining a stable deposit base, and improving operational efficiency in future periods. The company authorized a share repurchase program in December 2025, allowing for the repurchase of up to $5 million of common stock between Jan. 1, 2026, and Dec. 31, 2026, following the expiration of a similar program in 2025 under which no shares were repurchased. The company also declared total cash dividends of $1.84 per share for 2025, reflecting a payout ratio of 22.2% of earnings. These actions underscore management’s focus on capital management, alongside organic growth initiatives. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report C&F Financial Corporation (CFFI): Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research