C&F Financial (US:CFFI)2025-11-04 16:56Financial Performance - Consolidated net income increased by $1.7 million to $7.113 million for Q3 2025 compared to Q3 2024, and by $6.4 million to $20.275 million for the first nine months of 2025 compared to the same period in 2024[160]. - Community banking segment net income rose to $7.378 million in Q3 2025 from $5.337 million in Q3 2024, and to $19.939 million for the first nine months of 2025 from $13.920 million in the same period in 2024[159]. - The Corporation's net income attributable to C&F Financial Corporation was $7,138,000, an increase of 30.8% compared to $5,455,000 for the same quarter in 2024[295]. - Total interest income for the quarter was $38,783,000, up 7.3% from $36,131,000 in the prior year quarter[296]. - Net interest income for the quarter increased to $27,174,000, representing a 10.1% rise from $24,689,000 in the same quarter of 2024[296]. - Net interest income increased by $2.9 million to $21.2 million for Q3 2025 and by $7.4 million to $60.3 million for the first nine months of 2025, driven by higher average balances of earning assets and an increase in net interest margin[198]. Asset and Equity Growth - Total equity increased by $26.9 million to $253.9 million at September 30, 2025, compared to $227.0 million at December 31, 2024[163]. - Total assets of the company reached $2,691.3 million as of September 30, 2025, up from $2,526.7 million a year earlier, representing a growth of 6.5%[173]. - The average tangible common equity for the quarter was $218,504,000, an increase from $195,526,000 in the same quarter of 2024[295]. - Tangible book value per share increased to $70.15 as of September 30, 2025, up from $61.86 a year earlier[297]. Loan and Deposit Activity - Community banking segment loans grew by $91.4 million, or 8.4% annualized, compared to December 31, 2024[166]. - Deposits increased by $127.2 million, or 7.8% annualized, compared to December 31, 2024[166]. - Total loans reached $2,039.5 million in Q3 2025, compared to $1,932.7 million in Q3 2024, marking an increase of 5.5%[173]. - Average loans increased by $106.8 million (5.5%) to $2.04 billion for Q3 2025 and $134.8 million (7.2%) to $2.00 billion for the first nine months of 2025 compared to the same periods in 2024[180]. Interest Income and Margin - The consolidated annualized net interest margin was 4.24% for Q3 2025, up from 4.13% in Q3 2024[166]. - The net interest margin for Q3 2025 improved to 4.24%, an increase of 11 basis points from 4.13% in Q3 2024[178]. - The interest rate spread for Q3 2025 was 3.53%, compared to 3.37% in Q3 2024, indicating improved profitability[178]. Noninterest Income and Expenses - Total noninterest income increased by $72,000 (1.0%) for Q3 2025 and $2.7 million (11.3%) for the first nine months of 2025 compared to the same periods in 2024[188]. - Total noninterest expenses increased by $1.2 million (5.2%) for Q3 2025 and $3.4 million (4.9%) for the first nine months of 2025 compared to the same periods in 2024[191]. Credit Quality and Losses - The allowance for credit losses was $40.4 million in Q3 2025, slightly down from $40.9 million in Q3 2024[173]. - The allowance for credit losses at September 30, 2025, was $39.446 million, down from $40.771 million at September 30, 2024[227]. - The ratio of annualized net charge-offs to average loans for the consumer finance segment was 0.63% for Q3 2025, compared to 0.69% for Q3 2024[227]. - The corporation's net charge-offs for the consumer finance segment increased to $4.266 million in Q3 2025 from $4.135 million in Q3 2024[227]. Strategic Initiatives - The Corporation expanded into Southwest Virginia with the opening of a new loan production office in Roanoke in July 2025[166]. - The corporation plans to expand into Southwest Virginia, which is expected to enhance future operations and financial performance[298]. Risk Management - Interest rate risk management is a priority, with the corporation employing simulation analysis to assess potential impacts on net interest income from interest rate fluctuations[305]. - The Corporation's current interest rate exposure is deemed manageable and within established risk guidelines[315].