C&F Financial Corporation Announces Net Income for Second Quarter and First Six Months

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]