C&F Financial Corporation Announces Net Income for First Quarter

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].