[PART I - Financial Information](index=3&type=section&id=PART%20I%20-%20Financial%20Information) [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements for C&F Financial Corporation as of June 30, 2025, and for the three and six-month periods then ended, including balance sheets, statements of income, comprehensive income, equity, and cash flows, along with detailed notes [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets increased to $2.69 billion from $2.56 billion at year-end 2024, driven by growth in loans and securities, while total liabilities rose to $2.45 billion, primarily due to an increase in deposits and borrowings, and total equity grew to $240.9 million from $227.0 million Consolidated Balance Sheet Highlights (Unaudited) | (In thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$2,686,392** | **$2,563,374** | | Loans, net | $1,952,087 | $1,880,311 | | Securities—available for sale | $434,506 | $418,625 | | Total cash and cash equivalents | $80,195 | $65,586 | | **Total Liabilities** | **$2,445,476** | **$2,336,404** | | Total deposits | $2,256,314 | $2,170,860 | | Total borrowings (Short & Long-term) | $120,660 | $97,152 | | **Total Equity** | **$240,916** | **$226,970** | [Consolidated Statements of Income](index=5&type=section&id=Consolidated%20Statements%20of%20Income) For the second quarter of 2025, net income attributable to the Corporation was $7.7 million, or $2.37 per diluted share, a significant increase from $5.0 million, or $1.50 per diluted share, in Q2 2024, with six-month net income reaching $13.1 million, up from $8.4 million in the prior year period, driven by higher net interest income and noninterest income Financial Performance (Unaudited) | (In thousands, except per share) | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Interest Income | $26,508 | $23,828 | $51,518 | $46,986 | | Provision for Credit Losses | $2,100 | $2,550 | $5,100 | $6,050 | | Noninterest Income | $9,848 | $7,324 | $17,421 | $14,816 | | Noninterest Expenses | $24,630 | $22,373 | $47,689 | $45,523 | | **Net Income Attributable to C&F** | **$7,691** | **$5,007** | **$13,059** | **$8,408** | | **Net Income Per Share (diluted)** | **$2.37** | **$1.50** | **$4.03** | **$2.50** | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash used in operating activities was $1.2 million, a shift from $2.6 million provided in the same period of 2024, with net cash used in investing activities increasing to $89.6 million, and net cash provided by financing activities reaching $105.4 million, resulting in a net increase in cash and cash equivalents of $14.6 million Six Months Ended June 30, (In thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(1,177) | $2,590 | | Net cash used in investing activities | $(89,612) | $(72,222) | | Net cash provided by financing activities | $105,398 | $39,139 | | **Net increase (decrease) in cash** | **$14,609** | **$(30,493)** | [Notes to Consolidated Interim Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Interim%20Financial%20Statements) The notes provide detailed information on the Corporation's accounting policies and business operations, including the composition of its securities and loan portfolios, activity in the allowance for credit losses, goodwill stability, segment performance, and derivative instrument usage, notably the issuance of $40.0 million in new subordinated notes and repurchase of $20.0 million of existing notes on June 6, 2025 - The Corporation operates through three main segments: C&F Bank (commercial banking), C&F Mortgage (mortgage banking), and C&F Finance (consumer finance for automobile, marine, and RV loans)[25](index=25&type=chunk)[26](index=26&type=chunk) - On June 6, 2025, the Corporation issued **$40.0 million** of 7.50% subordinated notes due 2035 and concurrently repurchased its **$20.0 million** of 4.875% subordinated notes due 2030[29](index=29&type=chunk) Loan Portfolio Composition (in thousands) | Loan Class | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Commercial real estate | $763,624 | $734,182 | | Commercial business | $110,932 | $104,947 | | Construction - commercial real estate | $141,314 | $132,717 | | Residential mortgage | $313,273 | $308,809 | | Consumer finance - automobiles | $397,365 | $398,651 | | **Total Loans (Gross)** | **$1,991,665** | **$1,920,398** | Allowance for Credit Losses Activity - Six Months Ended June 30, 2025 (in thousands) | Category | Commercial | Consumer | Consumer Finance | Total | | :--- | :--- | :--- | :--- | :--- | | Balance at Dec 31, 2024 | $13,347 | $4,032 | $22,708 | $40,087 | | Provision | $(324) | $174 | $5,300 | $5,150 | | Net Charge-offs | $3 | $(39) | $(5,623) | $(5,659) | | **Balance at June 30, 2025** | **$13,026** | **$4,167** | **$22,385** | **$39,578** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=51&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the significant increase in consolidated net income for Q2 and H1 2025, driven by strong performance in the community and mortgage banking segments, with key factors including loan growth, increased mortgage origination volume, and a higher net interest margin, covering detailed segment performance, asset quality trends, liquidity management, and capital resources, including a new subordinated debt issuance and an ongoing share repurchase program Financial Performance Highlights | (In thousands, except per share) | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Consolidated net income | $7,767 | $5,034 | $13,162 | $8,469 | | Earnings per share - diluted | $2.37 | $1.50 | $4.03 | $2.50 | | Annualized return on average assets | 1.18% | 0.82% | 1.01% | 0.69% | | Annualized return on average equity | 13.06% | 9.31% | 11.23% | 7.82% | - Key operational highlights for H1 2025 include **10.6% annualized loan growth** in the community banking segment, a **$85.5 million increase in deposits**, and a rise in the consolidated annualized net interest margin to **4.27%** for Q2 2025[163](index=163&type=chunk) [Results of Operations](index=56&type=section&id=Results%20of%20Operations) Net interest income (tax-equivalent) increased to $26.8 million in Q2 2025 from $24.1 million in Q2 2024, with the net interest margin expanding to 4.27%, driven by higher earning asset yields and balances, while noninterest income grew 34.5% led by mortgage banking gains, and noninterest expense rose 10.1%, mainly from deferred compensation liabilities and marketing initiatives Change in Net Interest Income (Tax-Equivalent) - Q2 2025 vs Q2 2024 | (In thousands) | Increase (Decrease) Due to Rate | Increase (Decrease) Due to Volume | Total Increase (Decrease) | | :--- | :--- | :--- | :--- | | Total interest income | $1,056 | $2,055 | $3,111 | | Total interest expense | $(441) | $856 | $415 | | **Change in net interest income** | **$1,497** | **$1,199** | **$2,696** | - Total noninterest income increased by **$2.5 million (34.5%)** in Q2 2025 compared to Q2 2024, primarily due to higher mortgage loan production volume, which led to increased gains on sales of loans and mortgage banking fee income[190](index=190&type=chunk) - Total noninterest expenses rose by **$2.3 million (10.1%)** in Q2 2025, mainly due to fluctuations in deferred compensation liabilities (offset in noninterest income) and higher marketing expenses from a strategic initiative started in late 2024[193](index=193&type=chunk) [Business Segments](index=63&type=section&id=Business%20Segments) In Q2 2025, the Community Banking segment's net income rose to $7.1 million from $4.6 million year-over-year, driven by higher net interest income and lower credit provisions, while the Mortgage Banking segment's net income increased to $985,000 from $376,000, fueled by a 46.2% rise in loan originations, and the Consumer Finance segment's net income fell to $539,000 from $894,000, impacted by higher credit provisions and lower interest income Net Income by Segment - Q2 2025 vs Q2 2024 (in thousands) | Segment | Q2 2025 Net Income | Q2 2024 Net Income | | :--- | :--- | :--- | | Community Banking | $7,116 | $4,571 | | Mortgage Banking | $985 | $376 | | Consumer Finance | $539 | $894 | - Mortgage loan originations increased **46.2%** to **$213.5 million** in Q2 2025 from **$146.0 million** in Q2 2024, despite elevated mortgage interest rates[209](index=209&type=chunk)[212](index=212&type=chunk) - The Consumer Finance segment's net charge-offs increased, leading to a higher provision for credit losses of **$2.4 million** in Q2 2025 compared to **$2.1 million** in Q2 2024[219](index=219&type=chunk) [Asset Quality](index=71&type=section&id=Asset%20Quality) Overall asset quality remains sound, with the consolidated allowance for credit losses (ACL) to total loans at 1.99% at June 30, 2025, down from 2.09% at year-end 2024, while nonaccrual loans increased to $1.8 million (0.09% of total loans) from $0.9 million (0.05%), and the Community Banking segment saw a net reversal of credit provisions, while the Consumer Finance segment's provision increased due to higher net charge-offs (2.42% annualized for H1 2025) Consolidated Credit Ratios | Ratio | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Nonaccrual loans to total loans | 0.09% | 0.05% | | ACL to total loans | 1.99% | 2.09% | | ACL to nonaccrual loans | 2,233.52% | 4,233.05% | - The Community Banking segment's nonaccrual loans increased to **$1.1 million** from **$333,000** at year-end 2024, mainly due to the downgrade of one residential mortgage relationship[252](index=252&type=chunk) - The Consumer Finance segment's annualized net charge-off rate was **2.42%** for the first six months of 2025, up from **2.21%** for the same period in 2024, due to an increase in delinquent loans and repossessions[254](index=254&type=chunk) [Financial Condition](index=80&type=section&id=Financial%20Condition) Total assets grew by $123.0 million to $2.7 billion in the first half of 2025, funded by an $85.5 million increase in deposits and a $23.5 million increase in borrowings, with loans held for investment increasing by $71.8 million, and the Corporation enhancing its capital structure by issuing $40.0 million in new subordinated debt and repurchasing $20.0 million of older notes, maintaining strong liquidity with $950.1 million in liquid assets and available funding significantly exceeding uninsured deposits - Total assets increased by **$123.0 million** since December 31, 2024, reaching **$2.7 billion**, primarily due to loan and deposit growth[259](index=259&type=chunk) - Deposits increased by **$85.5 million** in the first six months of 2025, with growth across noninterest-bearing demand, savings, and time deposit categories[279](index=279&type=chunk) - On June 6, 2025, the Corporation issued **$40.0 million** in new 7.50% fixed-to-floating rate subordinated notes and repurchased **$20.0 million** of existing 4.875% notes, strengthening its Tier 2 capital[283](index=283&type=chunk) - As of June 30, 2025, uninsured deposits were approximately **$677.7 million (30.0% of total deposits)**. Excluding secured municipal and intercompany deposits, the uninsured amount was **$536.1 million**, which was covered **1.77 times** by available liquidity of **$950.1 million**[289](index=289&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=97&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The Corporation's primary market risk is interest rate volatility, monitored through simulation analysis and Economic Value of Equity (EVE) analysis, with a hypothetical 100 basis point rise in rates projected to increase net interest income by 2.05% over 12 months, while a 100 basis point drop would decrease it by 3.63%, and EVE analysis showing sensitivity to both rising and falling rates, with a greater negative impact from falling rates compared to the prior year-end One-Year Net Interest Income Simulation as of June 30, 2025 | Assumed Market Interest Rate Shift | Percentage Change | | :--- | :--- | | -300 BP shock | (11.94)% | | -200 BP shock | (7.90)% | | -100 BP shock | (3.63)% | | +100 BP shock | 2.05% | | +200 BP shock | 4.10% | | +300 BP shock | 6.14% | Static EVE Change as of June 30, 2025 | Assumed Market Interest Rate Shift | Percentage Change | | :--- | :--- | | -300 BP shock | (10.92)% | | -200 BP shock | (5.24)% | | -100 BP shock | (1.45)% | | +100 BP shock | (0.08)% | | +200 BP shock | (0.50)% | | +300 BP shock | (1.17)% | - The Corporation uses interest rate swaps to manage interest rate risk, including cash flow hedges to convert variable-rate trust preferred notes to fixed rates, and back-to-back swaps with commercial loan customers[325](index=325&type=chunk) [Controls and Procedures](index=101&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the Corporation's disclosure controls and procedures and concluded they were effective as of June 30, 2025, with no material changes in the Corporation's internal control over financial reporting during the second quarter of 2025 - The CEO and CFO concluded that the Corporation's disclosure controls and procedures were effective as of June 30, 2025[328](index=328&type=chunk) - No material changes to internal control over financial reporting occurred during the quarter ended June 30, 2025[329](index=329&type=chunk) [PART II - Other Information](index=102&type=section&id=PART%20II%20-%20Other%20Information) [Legal Proceedings](index=102&type=section&id=Item%201.%20Legal%20Proceedings) As of June 30, 2025, the Corporation is not involved in any material pending or threatened legal proceedings outside of those occurring in the ordinary course of business - The Corporation is not involved in any material pending or threatened legal proceedings other than those in the ordinary course of business[331](index=331&type=chunk) [Risk Factors](index=102&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors disclosed in the Corporation's Annual Report on Form 10-K for the year ended December 31, 2024 - No material changes in risk factors have occurred since the 2024 Annual Report on Form 10-K[332](index=332&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=102&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The Corporation has a share repurchase program authorizing up to $5.0 million in repurchases for 2025, with no shares repurchased under this program during the second quarter of 2025, and a total of 145 shares withheld to satisfy employee tax obligations upon vesting of restricted stock - The Board authorized a **$5.0 million** share repurchase program for 2025. No shares were repurchased under this program in Q2 2025[333](index=333&type=chunk) - During Q2 2025, **145 shares** were withheld from employees to satisfy tax withholding obligations related to vested restricted shares[335](index=335&type=chunk) [Other Information](index=102&type=section&id=Item%205.%20Other%20Information) During the second quarter of 2025, no directors or officers adopted, modified, or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement - No directors or officers adopted, modified, or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement in Q2 2025[336](index=336&type=chunk) [Exhibits](index=104&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the report, including the form of the new Subordinated Note, CEO/CFO certifications, and financial statements formatted in Inline XBRL - Key exhibits include the Form of Subordinated Note (4.1), CEO/CFO certifications (31.1, 31.2, 32), and Inline XBRL financial data (101)[338](index=338&type=chunk)

EXHIBIT 99.1 Thursday, July 24, 2025 Contact: Jason Long, CFO and Secretary (804) 843-2360 C&F Financial Corporation Announces Net Income for Second Quarter and First Six Months Toano, Va., July 24, 2025—C&F Financial Corporation (the Corporation) (NASDAQ: CFFI), the holding company for C&F Bank, today reported consolidated net income of $7.8 million for the second quarter of 2025, an increase of 54.3 percent compared to $5.0 million for the second quarter of 2024. The Corporation reported consolidated net ...

Financial Performance - C&F Financial Corporation reported consolidated net income of $7.8 million for Q2 2025, a 54.3% increase from $5.0 million in Q2 2024 [1] - For the first six months of 2025, consolidated net income was $13.2 million, up 55.4% from $8.5 million in the same period of 2024 [1] - Earnings per share for Q2 2025 were $2.37, compared to $1.50 in Q2 2024, and for the first six months, it was $4.03 versus $2.50 in 2024 [1] Segment Performance - The community banking segment saw loans grow by $76.7 million (10.6% annualized) in Q2 2025 and $143.4 million (10.3%) compared to June 30, 2024 [4] - The mortgage banking segment reported net income of $985,000 for Q2 2025, up from $376,000 in Q2 2024, with loan originations increasing by $67.5 million (46.2%) [8][9] - The consumer finance segment's net income was $539,000 for Q2 2025, down from $894,000 in Q2 2024, with average loans decreasing by $14.1 million (2.9%) [11] Asset Quality and Credit Losses - The community banking segment recorded a net reversal of provision for credit losses of $300,000 in Q2 2025, compared to a provision of $450,000 in Q2 2024 [4][7] - The consumer finance segment had a provision for credit losses of $2.4 million in Q2 2025, up from $2.1 million in Q2 2024 [11] - Nonaccrual loans in the community banking segment increased to $1.1 million as of June 30, 2025, from $333,000 at December 31, 2024 [7] Liquidity and Capital - As of June 30, 2025, the Corporation's uninsured deposits were approximately $677.7 million, or 30.0% of total deposits [15] - Total equity increased by $13.9 million at June 30, 2025, compared to December 31, 2024, primarily due to net income and lower unrealized losses in securities [19] - The Corporation declared a quarterly cash dividend of 46 cents per share, representing a payout ratio of 19.4% for Q2 2025 [18] Market Position and Strategy - The Corporation is optimistic about continued organic loan and deposit growth, particularly following its expansion into Southwest Virginia [3] - The community banking segment's average loans increased by $139.6 million (10.3%) for Q2 2025, driven by growth in construction and real estate loans [5] - The Corporation's share repurchase program authorized up to $5.0 million of common stock, but no repurchases were made in Q2 2025 [22]

Core Insights - C&F Financial Corporation is expanding its commercial banking operations in Southwest Virginia, targeting key markets such as Roanoke, Lynchburg, Danville, Martinsville, and Blacksburg [1][2] Group 1: Leadership and Team - Matt Hubbard has been appointed as the Southwest Virginia Regional President, bringing over 15 years of commercial banking experience from Atlantic Union Bank [2] - Sally Siveroni, with a banking career starting in 1986, joins as Commercial Credit Officer, previously serving as Regional Credit Officer at Atlantic Union Bank [3] - James Little, a Commercial Banking Relationship Manager with 17 years of experience, also joins the team, emphasizing community involvement [3] Group 2: Strategic Positioning - This expansion positions C&F as a premier community bank in Virginia, enhancing its competitive strength and strategic vision [2] - The company operates 31 banking offices and five commercial loan offices across Virginia, offering a range of financial services [5]

Core Points - C&F Financial Corporation has declared a regular cash dividend of 46 cents per share, payable on July 1, 2025, to shareholders of record on June 13, 2025 [1] - The Board of Directors regularly reviews the cash dividend amount and payout ratio based on economic conditions, capital requirements, and expected future earnings [2] Company Overview - C&F Bank operates 31 banking offices and four commercial loan offices in eastern and central Virginia, offering full wealth management services through its subsidiary C&F Wealth Management, Inc. [3] - C&F Mortgage Corporation and its subsidiary C&F Select LLC provide mortgage loan origination services in Virginia and surrounding states [3] - C&F Finance Company is a regional finance company that purchases automobile, marine, and recreational vehicle loans primarily in the Mid-Atlantic, Midwest, and Southern United States [3]

Financial Performance - Consolidated net income for Q1 2025 increased by $2.0 million to $5.395 million compared to $3.435 million in Q1 2024, driven by higher net income across all business segments [131]. - Earnings per share for Q1 2025 rose to $1.66, up from $1.01 in Q1 2024, reflecting a significant increase in profitability [130]. - Annualized return on average equity improved to 9.35% in Q1 2025, compared to 6.33% in Q1 2024 [130]. - Total equity increased by $8.3 million to $235.3 million as of March 31, 2025, compared to $227.0 million at December 31, 2024 [134]. - The effective income tax rate increased to 17.3% in Q1 2025 from 14.1% in Q1 2024, mainly due to a lower share of income at the community banking segment [163]. - The Corporation's net tangible income attributable for the quarter ended March 31, 2025, was $5.430 million, compared to $3.466 million for the same period in 2024 [271]. Loan and Deposit Growth - Community banking segment loans grew by $27.6 million, or 7.6% annualized, while consumer finance segment loans decreased by $4.7 million, or 4.0% annualized [137]. - Average loans increased by $160.2 million to $1.95 billion in Q1 2025, with the community banking segment seeing a 12.7% increase, primarily driven by growth in construction and commercial real estate loans [149]. - Total loans increased to $1.94 billion as of March 31, 2025, up from $1.92 billion at December 31, 2024, representing a growth of approximately 0.7% [213]. - Deposits increased by $45.8 million to $2.22 billion during the first quarter of 2025, with noninterest-bearing demand deposits rising by $53.6 million [246]. Interest Income and Margin - Net interest income for Q1 2025 increased to $25.3 million, up from $23.4 million in Q1 2024, primarily due to a higher net interest margin and increased average earning assets [148]. - Consolidated annualized net interest margin was 4.16% for Q1 2025, up from 4.09% in Q1 2024 [137]. - The annualized net interest margin rose by 7 basis points to 4.16% in Q1 2025 compared to the same period in 2024, attributed to a change in the mix of earning assets and higher yields [148]. - The community banking segment's average loan yield increased by 17 basis points to 5.52% in Q1 2025, driven by a shift towards higher yielding loans [150]. Noninterest Income and Expenses - Total noninterest income increased by $81,000, or 1.1%, in Q1 2025, driven by higher mortgage loan production and increased service charges [158]. - Total noninterest expenses decreased by $91,000, or less than one percent, in Q1 2025 compared to Q1 2024, primarily due to fluctuations in deferred compensation liabilities and lower employee benefits from reduced headcount [161]. Credit Quality and Losses - The provision for credit losses in Q1 2025 was $2.9 million, slightly down from $3.0 million in Q1 2024, attributed to lower average loan balances and an increase in net charge-offs [188]. - The allowance for credit losses as of March 31, 2025, was $40.043 million, a slight decrease from $40.087 million at the end of 2024 [202]. - The consumer finance segment's net charge-offs increased due to higher delinquent loans and repossessions, indicating potential future increases in the provision for credit losses if loan performance deteriorates [189]. - The community banking segment recorded a provision for credit losses of $100,000 for Q1 2025, down from $500,000 in the same period of 2024, indicating improved credit quality [217]. Capital and Liquidity - The Corporation's total risk-based capital ratio was 14.1% as of March 31, 2025, exceeding the minimum requirement of 8.0% [263]. - The Bank's Tier 1 risk-based capital ratio was 12.4% as of March 31, 2025, well above the minimum requirement of 6.0% [263]. - The Corporation's liquid assets totaled $315.0 million as of March 31, 2025, up from $288.1 million at December 31, 2024 [251]. - The Corporation's capacity for borrowings decreased by $7.5 million from December 31, 2024, primarily due to fluctuations in loans pledged to the FHLB [251]. Shareholder Returns - The Board of Directors declared a quarterly cash dividend of $0.46 per share, representing a payout ratio of 27.7% of earnings for Q1 2025 [135]. - The Corporation authorized a share repurchase program of up to $5.0 million effective from January 1, 2025, through December 31, 2025 [267]. - The Corporation's capital resources are influenced by its share repurchase programs, which aim to enhance shareholder returns [267]. Interest Rate Risk Management - The Corporation utilizes interest rate swaps to manage interest rate risk, converting variable rates to fixed rates for certain capital notes [291]. - The mortgage banking segment mitigates interest rate risk by entering into forward sales contracts with investors at the time interest rates are locked for loans [292]. - The Asset/Liability Committee meets quarterly to maximize net interest income while managing interest rate risk [280].

Financial Performance - Consolidated net income for Q1 2025 was $5.4 million, up from $3.4 million in Q1 2024, representing a 58.8% increase[2] - Earnings per share increased to $1.66 in Q1 2025 from $1.01 in Q1 2024, reflecting a 64.4% rise[2] - The net income for the quarter ended March 31, 2025, was $5,395,000, compared to $3,435,000 for the same period in 2024, reflecting a year-over-year increase of approximately 57.1%[32] - Interest income for the quarter was $35,988,000, up from $32,708,000 in the prior year, indicating an increase of about 10.4%[32] - The company reported a net interest income of $25,298,000 for the quarter, compared to $23,443,000 in the same quarter of the previous year, reflecting an increase of approximately 7.9%[32] - Earnings per share (EPS) rose to $1.66, up from $1.01 in the same quarter last year, marking a significant increase of 64.4%[35] Loan and Deposit Growth - Community banking segment loans grew by $27.6 million, or 7.6% annualized, and $139.9 million, or 10.4% year-over-year[4] - Consumer finance segment loans decreased by $4.7 million, or 4.0% annualized, and $14.0 million, or 2.9% year-over-year[4] - Mortgage banking segment loan originations rose by $19.5 million, or 20.6%, to $113.8 million compared to Q1 2024[5] - Total loans reached $1,954,049 million, a 9.0% increase from $1,793,808 million in the previous year[34] - The total deposits as of March 31, 2025, were $2,216,654,000, up from $2,170,860,000 at the end of 2024, indicating a growth of about 2.1%[32] - Deposits increased by $45.8 million, or 8.4% annualized, and $128.7 million, or 6.2% year-over-year[4] Asset and Equity Growth - As of March 31, 2025, the total assets of C&F Financial Corporation were $2,612,530,000, an increase from $2,563,374,000 at December 31, 2024, representing a growth of approximately 1.9%[32] - Total consolidated equity increased by $8.3 million at March 31, 2025, compared to December 31, 2024[20] - Total equity as of March 31, 2025, was $235,271,000, an increase from $226,970,000 at the end of 2024, marking a growth of approximately 3.3%[32] - The tangible book value per share was reported at $64.39, while the book value per share was $72.51 as of March 31, 2025[23] Credit Quality and Losses - The allowance for credit losses was $22.5 million at March 31, 2025, representing 4.88% of total loans[14] - The provision for credit losses in the Community Banking segment was $100,000, down from $500,000 in the previous year, while the Consumer Finance segment's provision was $2,900,000, down from $3,000,000[32] - The allowance for credit losses (ACL) to total loans ratio was 1.18% as of March 31, 2025, slightly down from 1.20% a year prior[35] - Nonaccrual loans to total loans ratio increased to 0.08% from 0.02%, indicating a rise in asset quality concerns[35] Dividends and Returns - The Corporation increased its quarterly cash dividend by 5% to $0.46 per share, with a payout ratio of 27.7%[19] - The annualized return on average equity improved to 9.35% in Q1 2025 from 6.33% in Q1 2024[2] - The annualized return on average assets improved to 0.84% from 0.57% year-over-year[35] - The total risk-based capital ratio for C&F Financial Corporation remained stable at 14.1% as of March 31, 2025, consistent with the previous quarter[37] - The price to earnings ratio (ttm) decreased to 11.16 from 11.86, indicating a slight decline in market valuation relative to earnings[37] Company Overview - C&F Financial Corporation operates 31 banking offices and four commercial loan offices, providing a range of financial services across eastern and central Virginia[24] - C&F Financial Corporation emphasizes the use of non-GAAP financial measures to provide a clearer picture of its operating performance, including adjusted net income and adjusted return on average equity[26]

Core Viewpoint - C&F Financial Corporation reported a consolidated net income of $5.4 million for Q1 2025, a significant increase from $3.4 million in Q1 2024, driven by growth in various business segments and improved efficiency [1][2]. Financial Performance Highlights - Consolidated net income increased to $5.4 million in Q1 2025 from $3.4 million in Q1 2024 [1]. - Earnings per share rose to $1.66 from $1.01 year-over-year [1]. - Annualized return on average equity improved to 9.35% from 6.33% [1]. - Annualized return on average tangible common equity increased to 10.65% from 7.30% [1]. - Annualized return on average assets rose to 0.84% from 0.57% [1]. Segment Performance Community Banking Segment - Net income for the community banking segment was $5.4 million in Q1 2025, up from $4.0 million in Q1 2024 [3]. - Loans in the community banking segment grew by $27.6 million, or 7.6% annualized, compared to Q4 2024 [3]. - Deposits increased by $45.8 million, or 8.4% annualized, compared to Q4 2024 [3]. - The annualized net interest margin for the community banking segment was 4.16% in Q1 2025, slightly up from 4.09% in Q1 2024 [3]. Mortgage Banking Segment - The mortgage banking segment reported net income of $431,000 for Q1 2025, compared to $294,000 in Q1 2024 [7]. - Mortgage loan originations increased by $19.5 million, or 20.6%, to $113.8 million in Q1 2025 compared to Q1 2024 [7]. - Loan originations decreased by $16.7 million, or 12.8%, compared to Q4 2024 [7]. Consumer Finance Segment - The consumer finance segment reported net income of $226,000 for Q1 2025, compared to a net loss of $63,000 in Q1 2024 [11]. - Average loans decreased by $8.3 million, or 1.8%, compared to Q1 2024 [11]. - The allowance for credit losses was $22.5 million at March 31, 2025, compared to $22.7 million at December 31, 2024 [12]. Liquidity and Capital Management - As of March 31, 2025, the Corporation's uninsured deposits were approximately $644.4 million, or 29.1% of total deposits [13]. - Total equity increased by $8.3 million at March 31, 2025, compared to December 31, 2024, primarily due to net income and lower unrealized losses in securities [18]. - The Corporation's total risk-based capital ratio was 14.1% as of March 31, 2025, exceeding the minimum requirement of 8.0% [36]. Dividend and Stock Repurchase - The Corporation increased its quarterly cash dividend by 5% to $0.46 per share, representing a payout ratio of 27.7% of earnings per share for Q1 2025 [16]. - No repurchases of common stock were made under the 2025 Repurchase Program during Q1 2025 [20].

Financial Performance - Consolidated net income for 2024 was $19.9 million, down from $23.7 million in 2023, with earnings per share decreasing from $6.92 to $6.01[222] - Adjusted net income for 2024 was $20.0 million, compared to $23.7 million in 2023[222] - Community banking segment net income for the year ended December 31, 2024, was $20.3 million, a decrease from $22.9 million in 2023[280] - The consumer finance segment reported net income of $1.4 million for the year ended December 31, 2024, down from $2.9 million in 2023, primarily due to higher provision for credit losses[300] - Mortgage banking segment net income increased to $1.1 million for the year ended December 31, 2024, from $465,000 in 2023[288] Loan Growth - Total loans increased to $1,885,643 thousand in 2024, up from $1,713,626 thousand in 2023, reflecting a growth of approximately 10%[249] - Community banking segment loans grew by $180.0 million, or 14.1%, to $1.5 billion at December 31, 2024, compared to $1.3 billion at December 31, 2023[282] - Average loans increased by $172.0 million to $1.89 billion in 2024, with community banking segment loans rising by $164.0 million, or 13.5%[257] - The average loans for the commercial segment were $1,010,121 thousand in 2024, an increase from $879,608 thousand in 2023, representing a growth of 14.8%[320] - Total loans held for investment reached $1.88 billion, with loans held for sale valued at $20.1 million as of December 31, 2024[360] Credit Loss Provisions - The consumer finance segment provision for credit losses increased to $11.6 million from $6.7 million[228] - The provision for credit losses on loans was $13,100 thousand for the year ended December 31, 2024, compared to $8,126 thousand in 2023, indicating a significant increase of 61.5%[334] - The provision for credit losses in the community banking segment was $1.7 million for 2024, compared to $1.6 million in 2023, reflecting growth in the loan portfolio[283] - Management believes the allowance for credit losses is adequate, but further deterioration in loan performance may lead to increased provisions in the future[302] - The total allowance for credit losses increased to $40,087 thousand as of December 31, 2024, up from $39,651 thousand in 2023, reflecting a provision charged to operations of $13,100 thousand[320] Interest Income and Margin - The net interest income for the year ended December 31, 2024, was $97,922 thousand, compared to $98,671 thousand in 2023, indicating a slight decrease[249] - The consolidated net interest margin decreased to 4.12% from 4.31%[228] - The yield on total loans for 2024 was 6.75%, an increase from 6.49% in 2023[249] - The average yield on interest-bearing deposits increased by 99 basis points to 2.42% for 2024, compared to 1.43% in 2023[262] - Net interest income after provision for credit losses for the consumer finance segment was $14.4 million in 2024, down from $17.8 million in 2023[298] Asset and Equity Growth - Total equity increased to $227.0 million at December 31, 2024, compared to $217.5 million at December 31, 2023[226] - The corporation's total assets reached $2,494,496 thousand in 2024, an increase from $2,393,497 thousand in 2023, indicating overall growth[249] - Total assets increased to $2.56 billion as of December 31, 2024, compared to $2.44 billion in 2023, primarily due to growth in loans held for investment[359] - The average balance of total earning assets increased to $2,378,506 thousand in 2024 from $2,285,878 thousand in 2023, marking a growth of approximately 4%[249] - The average balance of interest-bearing deposits rose to $1,572,128 thousand in 2024, compared to $1,422,529 thousand in 2023, representing an increase of about 10.5%[249] Noninterest Income and Expenses - Total noninterest income increased by $923,000, or 3.1%, for 2024, driven by higher wealth management services income and mortgage loan production[267] - Total noninterest expense rose by $47,000, or less than 1%, for 2024, attributed to higher professional fees and data processing expenses[273] - Noninterest income for the consumer finance segment was $1.0 million in 2024, slightly up from $962,000 in 2023[298] - Noninterest expenses for the community banking segment totaled $62.9 million for 2024, compared to $60.8 million in 2023[279] - Total noninterest expenses decreased to $13.5 million in 2024 from $14.8 million in 2023, reflecting efforts to reduce overhead costs[298] Regulatory and Economic Environment - Economic and regulatory uncertainties are expected to continue in 2025, impacting interest rate movements and overall business performance[235] - The corporation's credit policy emphasizes maintaining acceptable asset quality alongside loan growth, with a focus on risk management and underwriting standards[367] - The maximum loan-to-value ratio for commercial real estate loans is typically 80%, with exceptions for strong borrowers[370] Deposits and Borrowings - Deposits increased by $104.7 million to $2.17 billion at December 31, 2024, compared to $2.07 billion at December 31, 2023[403] - Borrowings increased to $122.6 million at December 31, 2024, up from $109.5 million at December 31, 2023, primarily due to higher long-term borrowings from the FHLB[410] - The average balance of certificates of deposit increased to $767.7 million in 2024, with an average rate of 4.10%[406] - The corporation had $25.0 million in brokered deposits outstanding at both December 31, 2024, and December 31, 2023[405] - The total contract amount of standby letters of credit rose to $18.8 million at December 31, 2024, from $7.9 million at December 31, 2023, reflecting a significant increase of 137.9%[414]

Core Points - C&F Financial Corporation has declared a regular cash dividend of 46 cents per share, which is a 5 percent increase from the previous quarter's dividend of 44 cents per share [1] - The dividend is payable on April 1, 2025, to shareholders of record on March 14, 2025 [1] - The Board of Directors regularly reviews the cash dividends per share and the dividend payout ratio based on economic conditions, capital requirements, and expected future earnings [2] Company Overview - C&F Bank operates 31 banking offices and four commercial loan offices in eastern and central Virginia, offering full wealth management services through its subsidiary C&F Wealth Management, Inc. [3] - C&F Mortgage Corporation and its subsidiary C&F Select LLC provide mortgage loan origination services in Virginia and surrounding states [3] - C&F Finance Company is a regional finance company that purchases automobile, marine, and recreational vehicle loans primarily in the Mid-Atlantic, Midwest, and Southern United States [3]