{"success":true,"data":{"pressRelease":{"id":"7248","rtpr_id":"nGNX7FwyhL","ticker":"CFFI","exchange":"NASDAQ","all_tickers":["CFFI"],"title":"C&F Financial Corporation Announces Net Income for First Quarter","author":"Globe Newswire","published_at":"2026-04-23T16:09:00.474Z","article_body":"TOANO, Va., April 23, 2026 (GLOBE NEWSWIRE) -- C&F Financial Corporation (the\nCorporation) (NASDAQ: CFFI), the holding company for C&F Bank, today reported\nconsolidated net income of $6.8 million for the first quarter of 2026 compared\nto $5.4 million for the first quarter of 2025. The following table presents\nselected financial performance highlights for the periods indicated:\n\n For The Quarter Ended \n Consolidated Financial Highlights (unaudited) 3/31/2026 12/31/2025 3/31/2025 \n Consolidated net income (000's) $ 6,794 $ 6,716 $ 5,395 \n \n Earnings per share - basic and diluted $ 2.08 $ 2.07 $ 1.66 \n \n Annualized return on average assets 0.97 % 0.97 % 0.84 % \n Annualized return on average equity 10.19 % 10.41 % 9.35 % \n Annualized return on average tangible common equity (1) 11.28 % 11.67 % 10.65 % \n\n________________________\n\n (1) For more information about these non-GAAP financial measures, which are not calculated in accordance with generally accepted accounting principles (GAAP), please see “Use of Certain Non-GAAP Financial Measures” and “Reconciliation of Certain Non-GAAP Financial Measures,” below. \n \n\n “C&F started 2026 with strong momentum, delivering earnings per share\ngrowth of 25 percent year over year,” said Tom Cherry, President and Chief\nExecutive Officer of C&F Financial Corporation. “Higher net income at our\ncommunity banking and mortgage banking segments more than offset lower\nearnings at our consumer finance segment, compared to March 31, 2025. Solid\nloan and deposit growth at our community banking segment, approximately a 58\npercent jump in mortgage originations at our mortgage banking segment, and\nhigher net interest margin all helped drive these results.\n\nThe U.S. economy stayed resilient in the first quarter, but risks are\nbuilding, specifically with the conflict in the Middle East and potential\nassociated impacts on interest rates, energy prices, and other economic\neffects. As conditions change, we are prepared to adapt quickly.”\n\nKey highlights for the first quarter of 2026 are as follows.\n* Community banking segment loans grew $24.1 million, or 6.1 percent\nannualized, and $133.2 million, or 9.0 percent, compared to December 31, 2025\nand March 31, 2025, respectively;\n* Consumer finance segment loans decreased $3.6 million, or 3.1 percent\nannualized, and decreased $1.5 million, or less than one percent, compared to\nDecember 31, 2025 and March 31, 2025, respectively;\n* Deposits increased $53.7 million, or 9.2 percent annualized, and $182.8\nmillion, or 8.2 percent, compared to December 31, 2025 and March 31, 2025,\nrespectively. A portion of the increases in deposits compared to March 31,\n2025 was due to the wind-down of the repurchase agreement program with certain\ncommercial deposit customers during the third quarter of 2025. The balance of\nthese repurchase agreements was $25.9 million at March 31, 2025;\n* Consolidated annualized net interest margin was 4.27 percent for the first\nquarter of 2026 compared to 4.16 percent for the first quarter of 2025;\n* The consumer finance segment experienced net charge-offs at an annualized\nrate of 2.98 percent of average total loans for the first quarter of 2026\ncompared to 2.86 percent and 2.64 percent for the fourth quarter and first\nquarter of 2025, respectively;\n* Mortgage banking segment loan originations increased $65.9 million, or 57.9\npercent, to $179.6 million for the first quarter of 2026 compared to the first\nquarter of 2025.\nCommunity Banking Segment. The community banking segment reported net income\nof $7.1 million for the first quarter of 2026 compared to $5.4 million for the\nfirst quarter of 2025 due primarily to:\n* higher interest income resulting from higher average balances of loans and\ncash reserves and higher average interest rates on securities;\npartially offset by:\n* higher salaries and employee benefits due primarily to the addition of a\nseasoned lending team with the expansion into Southwest Virginia in the third\nquarter of 2025 and annual compensation adjustments.\nAverage loans increased $135.2 million, or 9.2 percent, for the first quarter\nof 2026 compared to the first quarter of 2025 due primarily to growth in the\ncommercial real estate, land acquisition and development, and equity lines\nsegments of the loan portfolio. Average deposits increased $180.5 million, or\n8.2 percent, for the first quarter of 2026 compared to the first quarter of\n2025 due primarily to higher balances across all categories of deposits. A\nportion of the increase in average deposits was due to the wind-down of the\nrepurchase agreement program with certain commercial deposit customers during\nthe third quarter of 2025. The average balance of these repurchase agreements\nwas $28.2 million at March 31, 2025.\n\nAverage interest-earning asset yields were higher for the first quarter of\n2026 compared to the first quarter of 2025 due primarily to higher average\ninterest rates on securities available for sale. Average costs of\ninterest-bearing deposits were lower for the first quarter of 2026 compared to\nthe first quarter of 2025 due primarily to a decrease in average interest\nrates paid on time deposits.  \n\nThe community banking segment’s nonaccrual loans were $1.1 million at both\nMarch 31, 2026 and December 31, 2025. The community banking segment recorded\nprovision for credit losses of $300,000 for the first quarter of 2026 compared\nto $100,000 for the first quarter of 2025. At March 31, 2026 the allowance\nfor credit losses was $17.6 million compared to $17.4 million at December 31,\n2025. The allowance for credit losses as a percentage of total loans decreased\nto 1.09 percent at March 31, 2026 from 1.10 percent at December 31, 2025.\nManagement believes that the level of the allowance for credit losses is\nadequate to reflect the net amount expected to be collected.\n\nMortgage Banking Segment. The mortgage banking segment reported net income of\n$910,000 for the first quarter of 2026 compared to $431,000 for the first\nquarter of 2025 due primarily to:\n* higher gains on sales of loans and higher mortgage banking fee income due to\nhigher volume of mortgage loan originations; and\n* higher mortgage lender services fee income;\npartially offset by:\n* higher variable expenses tied to mortgage loan origination volume such as\ncommissions and bonuses, reported in salaries and employee benefits.\nMortgage banking segment loan originations increased 57.9 percent compared to\nthe first quarter of 2025 as the mortgage interest rate environment has become\nmore favorable, which led to an increase in both purchases and refinancings.\nMortgage loan originations for the mortgage banking segment were $179.6\nmillion for the first quarter of 2026, comprised of $142.5 million home\npurchases and $37.1 million refinancings, compared to $113.8 million for the\nfirst quarter of 2025, comprised of $101.7 million home purchases and $12.1\nmillion refinancings. Mortgage loan segment originations include originations\nof loans sold to the community banking segment, at prices similar to those\npaid by third-party investors. These transactions are eliminated to reach\nconsolidated totals.\n\nThrough the Lender Solutions division of the mortgage banking segment,\nmortgage lender services fee income is derived from providing mortgage\norigination functions to third-party mortgage lenders for a fee. Mortgage\nlender services fee income increased to $820,000 for the first quarter of 2026\ncompared to $541,000 for the first quarter of 2025 due primarily to increased\nmortgage loan volume in the industry.\n\nDuring the first quarter of 2026, the mortgage banking segment recorded net\nreversals of provision for indemnification losses of $35,000 compared to net\nreversals of provision for indemnification losses of $25,000 in the same\nperiod of 2025. The allowance for indemnifications was $1.1 million and $1.2\nmillion at March 31, 2026 and December 31, 2025, respectively. The release\nof indemnification reserves in 2026 and 2025 was due primarily to lower volume\nof mortgage loan originations in recent years compared to years prior when the\nindemnification reserve was increased due to higher volume coming out of the\npandemic, improvement in the mortgage banking segment’s assessment of\nborrower payment performance and other factors affecting expected losses on\nmortgage loans sold in the secondary market, such as time since origination.\nManagement believes that the indemnification reserve is sufficient to absorb\nlosses related to loans that have been sold in the secondary market.\n\nConsumer Finance Segment.   The consumer finance segment reported a net loss\nof $81,000 for the first quarter of 2026 compared to net income of $226,000\nfor the first quarter of 2025 due primarily to:\n* higher provision for credit losses due primarily to higher net charge-offs;\nand\n* higher professional fees and higher loan processing and collection expenses;\npartially offset by:\n* higher interest income resulting from higher loan yields due primarily to a\nshift in the mix of the loan portfolio with the termination of the\nlower-yielding marine and recreational vehicle loan program; and\n* lower interest expense allocation on borrowings from the community banking\nsegment as a result of lower average interest rates;\nAverage loans decreased $1.0 million, or less than one percent, for the first\nquarter of 2026 compared to the same period in 2025 due primarily to a\ndecrease in marine and recreational vehicle loans as the third party\nadministrator of that program significantly decreased sales of those loans to\noutside parties during 2025, which led to the consumer finance segment ending\nfuture purchases under the program during the third quarter of 2025. The\nmarine and recreational vehicle portfolio is expected to run off over the next\nseveral years as scheduled borrower payments are made on the existing loans.\nThe consumer finance segment experienced net charge-offs at an annualized rate\nof 2.98 percent of average total loans for the first quarter of 2026 compared\nto 2.64 percent for the first quarter of 2025 due primarily to an increase in\ndelinquent loans and repossessions. At March 31, 2026, total delinquent loans\nas a percentage of total loans was 3.35 percent compared to 4.38 percent at\nDecember 31, 2025 and 3.05 percent at March 31, 2025.\n\nThe consumer finance segment, at times, offers payment deferrals as a\nportfolio management technique to achieve higher ultimate cash collections on\nselect loan accounts. A significant reliance on deferrals as a means of\nmanaging collections may result in a lengthening of the loss confirmation\nperiod, which would increase expectations of credit losses inherent in the\nportfolio. Average amounts of payment deferrals of automobile loans on a\nmonthly basis, which are not included in delinquent loans, were 1.34 percent\nof average automobile loans outstanding during the first quarter of 2026\ncompared to 2.50 percent during the fourth quarter of 2025 and 1.75 percent\nduring the first quarter of 2025.\n\nThe allowance for credit losses was $22.1 million, or 4.80 percent of total\nloans, at March 31, 2026 compared to $22.3 million, or 4.79 percent of total\nloans, at December 31, 2025. Management believes that the level of the\nallowance for credit losses is adequate to reflect the net amount expected to\nbe collected. If loan performance deteriorates resulting in further elevated\ndelinquencies or net charge-offs, the provision for credit losses may increase\nin future periods.\n\nLiquidity. The objective of the Corporation’s liquidity management is to\nensure the continuous availability of funds to satisfy the credit needs of our\ncustomers and the demands of our depositors, creditors and investors.\nUninsured deposits represent an estimate of amounts above the Federal Deposit\nInsurance Corporation (FDIC) insurance coverage limit of $250,000. As of\nMarch 31, 2026, the Corporation’s uninsured deposits were approximately\n$745.7 million, or 31.1 percent of total deposits. Excluding intercompany cash\nholdings and municipal deposits, which are secured with pledged securities,\namounts uninsured were approximately $578.4 million, or 24.1 percent of total\ndeposits as of March 31, 2026. The Corporation’s liquid assets, which\ninclude cash and due from banks, interest-bearing deposits at other banks and\nnonpledged securities available for sale, were $428.9 million and borrowing\navailability was $681.4 million as of March 31, 2026, which in total exceed\nuninsured deposits, excluding intercompany cash holdings and secured municipal\ndeposits, by $531.9 million as of March 31, 2026.\n\nIn addition to deposits, the Corporation utilizes short-term and long-term\nborrowings as sources of funds. Short-term borrowings from the Federal Reserve\nBank and the Federal Home Loan Bank of Atlanta (FHLB) may be used to fund the\nCorporation’s day-to-day operations. Total borrowings decreased to $103.3\nmillion at March 31, 2026 from $113.3 million at December 31, 2025 due\nprimarily to the repayment of FHLB advances during the first quarter of 2026.\n\nAdditional sources of liquidity available to the Corporation include cash\nflows from operations, loan payments and payoffs, deposit growth, maturities,\ncalls and sales of securities, the issuance of brokered certificates of\ndeposit and the capacity to borrow additional funds.\n\nCapital and Dividends.   During the first quarter of 2026, the Corporation\nincreased its quarterly cash dividend by 4 percent, to 48 cents per share,\ncompared to the previous quarterly dividend. This dividend, which was paid to\nshareholders on April 1, 2026, represents a payout ratio of 23.1 percent of\nearnings per share for the first quarter of 2026. The Board of Directors of\nthe Corporation continually reviews the amount of cash dividends per share and\nthe resulting dividend payout ratio in light of changes in economic\nconditions, current and future capital levels and requirements, and expected\nfuture earnings.\n\nTotal consolidated equity increased $3.8 million at March 31, 2026, compared\nto December 31, 2025, due primarily to net income, partially offset by\ndividends paid on the Corporation’s common stock and higher unrealized\nlosses in the market value of securities available for sale, which are\nrecognized as a component of other comprehensive income. The Corporation’s\nsecurities available for sale are fixed income debt securities and their\nunrealized loss position is a result of increased market interest rates since\nthey were purchased. The Corporation expects to recover its investments in\ndebt securities through scheduled payments of principal and interest.\nUnrealized losses are not expected to affect the earnings or regulatory\ncapital of the Corporation or C&F Bank. The accumulated other comprehensive\nloss related to the Corporation’s securities available for sale, net of\ndeferred income taxes, increased to $11.7 million at March 31, 2026 compared\nto $10.2 million at December 31, 2025 due primarily to fluctuations in debt\nsecurity market interest rates.\n\nAs of March 31, 2026, C&F Bank was categorized as well capitalized under the\nFDIC’s regulatory framework for prompt corrective action. To be categorized\nas well capitalized under regulations applicable at March 31, 2026, C&F Bank\nwas required to maintain minimum total risk-based, Tier 1 risk-based, CET1\nrisk-based and Tier 1 leverage ratios. In addition to the regulatory\nrisk-based capital requirements, C&F Bank must maintain a capital conservation\nbuffer of additional capital of 2.5 percent of risk-weighted assets as\nrequired by the Basel III capital rules. The Corporation and C&F Bank exceeded\nthese ratios at March 31, 2026. For additional information, see “Capital\nRatios” below. The above mentioned ratios are not impacted by unrealized\nlosses on securities available for sale. In the event that all of these\nunrealized losses become realized into earnings, the Corporation and C&F Bank\nwould both continue to exceed minimum capital requirements, including the\ncapital conservation buffer, and be considered well capitalized.\n\nThe Corporation has a share repurchase program, effective January 1, 2026\nthrough December 31, 2026, that was authorized by the Board of Directors to\nrepurchase up to $5.0 million of the Corporation’s common stock (the 2026\nRepurchase Program). During the first quarter of 2026, the Corporation\nrepurchased 4,279 shares, or $309,000 of its common stock under the 2026\nRepurchase Program.\n\nAbout C&F Financial Corporation.   The Corporation’s common stock is\nlisted for trading on The Nasdaq Stock Market under the symbol CFFI. The\ncommon stock closed at a price of $76.30 per share on April 22, 2026. At\nMarch 31, 2026, the book value per share of the Corporation was $81.73 and\nthe tangible book value per share was $73.70. For more information about the\nCorporation’s tangible book value per share, which is not calculated in\naccordance with GAAP, please see “Use of Certain Non-GAAP Financial\nMeasures” and “Reconciliation of Certain Non-GAAP Financial Measures,”\nbelow.\n\nC&F Bank operates 31 banking offices and five commercial loan offices located\nthroughout Virginia and offers full wealth management services through its\nsubsidiary C&F Wealth Management, Inc. C&F Mortgage Corporation and its\nsubsidiary C&F Select LLC provide mortgage loan origination services through\noffices located in Virginia and the surrounding states. C&F Finance Company\nprovides automobile, marine and recreational vehicle loans through indirect\nlending programs offered primarily in the Mid-Atlantic, Midwest and Southern\nUnited States from its headquarters in Henrico, Virginia.\n\nAdditional information regarding the Corporation’s products and services, as\nwell as access to its filings with the Securities and Exchange Commission\n(SEC), are available on the Corporation’s website at http://www.cffc.com.\n\nUse of Certain Non-GAAP Financial Measures. The accounting and reporting\npolicies of the Corporation conform to GAAP in the United States and\nprevailing practices in the banking industry. However, certain non-GAAP\nmeasures are used by management to supplement the evaluation of the\nCorporation’s performance. These include net tangible income attributable to\nthe Corporation, return on average tangible common equity (ROTCE), tangible\nbook value per share, price to tangible book value ratio, and the following\nfully-taxable equivalent (FTE) measures: interest and fees on loans-FTE,\ninterest and dividends on securities-FTE, total interest income-FTE and net\ninterest income-FTE. Interest on tax-exempt loans and securities is presented\non a taxable-equivalent basis (which converts the income on loans and\ninvestments for which no income taxes are paid to the equivalent yield as if\nincome taxes were paid) using the federal corporate income tax rate of 21\npercent that was applicable for all periods presented.\n\nManagement believes that the use of these non-GAAP measures provides\nmeaningful information about operating performance by enhancing comparability\nwith other financial periods, other financial institutions, and between\ndifferent sources of interest income. The non-GAAP measures used by management\nenhance comparability by excluding the effects of balances of intangible\nassets, including goodwill, that vary significantly between institutions, and\ntax benefits that are not consistent across different opportunities for\ninvestment. These non-GAAP financial measures should not be considered an\nalternative to, or more important than, GAAP-basis financial statements, and\nother bank holding companies may define or calculate these or similar measures\ndifferently. A reconciliation of the non-GAAP financial measures used by the\nCorporation to evaluate and measure the Corporation’s performance to the\nmost directly comparable GAAP financial measures is presented below in the\n“Reconciliation of Certain Non-GAAP Financial Measures,” “Fully Taxable\nEquivalent Net Interest Income” and “Tangible Book Value Per Share”\ntables.\n\nForward-Looking Statements.   This press release contains statements\nconcerning the Corporation’s expectations, plans, objectives or beliefs\nregarding future financial performance and other statements that are not\nhistorical facts, which may constitute “forward-looking statements” as\ndefined by federal securities laws. Forward-looking statements generally can\nbe identified by the use of words such as “believe,” “expect,”\n“anticipate,” “estimate,” “plan,” “may,” “might,”\n“will,” “intend,” “target,” “should,” “could,” or similar\nexpressions, are not statements of historical fact, and are based on\nmanagement’s beliefs, assumptions and expectations regarding future events\nor performance as of the date of this press release, taking into account all\ninformation currently available. These statements may include, but are not\nlimited to: statements made in Mr. Cherry’s quotation and statements\nregarding expected future operations and financial performance; expected\ntrends in yields on loans; expected future recovery of investments in debt\nsecurities; future dividend payments and share repurchases; deposit trends;\ncharge-offs and delinquencies; changes in cost of funds and net interest\nmargin and items affecting net interest margin; strategic business\ninitiatives, including our expansion into Southwest Virginia, and the\nanticipated effects thereof; changes in interest rates and the effects thereof\non net interest income; expected impact of unrealized losses on earnings and\nregulatory capital of the Corporation or C&F Bank; expected renewal of\nunsecured federal funds agreements; mortgage loan originations; expectations\nregarding C&F Bank’s regulatory risk-based capital requirement levels;\ncompetition; our loan portfolio; our digital services; the adoption of\nartificial intelligence; deposit trends; improving operational efficiencies;\nretention of qualified loan officers and expectations regarding new mortgage\nloan originations; higher quality automobile loan contracts; expectations\nregarding the runoff of the marine and recreational vehicle portfolio;\ntechnology initiatives; our diversified business strategy; asset quality;\ncredit quality; adequacy of allowances for credit losses and the level of\nfuture charge-offs; market interest rates and housing inventory and resulting\neffects on mortgage loan origination volume; sources of liquidity; adequacy of\nthe reserve for indemnification losses related to loans sold in the secondary\nmarket; capital levels; the effect of future market and industry trends and\nconditions; the effects of future interest rate levels and fluctuations;\ncybersecurity risks; and inflation. These forward-looking statements are\nsubject to significant risks and uncertainties due to factors that could have\na material adverse effect on the operations and future prospects of the\nCorporation including, but not limited to, changes in:\n* interest rates, such as volatility in short-term interest rates or yields on\nU.S. Treasury bonds, fluctuations in interest rates following actions by the\nFederal Reserve and increases or volatility in mortgage interest rates\n* general business conditions, as well as conditions within the financial\nmarkets\n* general economic conditions, including unemployment levels, inflation rates,\nsupply chain disruptions, slowdowns in economic growth and government\nshutdowns\n* general market conditions, including disruptions due to pandemics or\nsignificant health hazards, severe weather conditions, natural disasters,\nterrorist activities, financial crises, political crises, changes in trade\npolicy and the implementation of tariffs, geopolitical tensions, war and other\nmilitary conflicts (including the conflict in the Middle East and potential\nassociated impacts on interest rates and energy prices) or other major events,\nor the prospect of these events\n* average loan yields and securities yields and average costs of\ninterest-bearing deposits and borrowings\n* financial services industry conditions, including bank failures or rumors of\nsuch failures, the soundness of other financial institutions or concerns\ninvolving liquidity, along with actions taken by governmental agencies to\naddress such conditions, and the effects on financial institutions, including\nus, on, among other things, the ability to attract or retain depositors and to\nborrow or raise capital\n* labor market conditions, including attracting, hiring, training, motivating\nand retaining qualified employees\n* the legislative and regulatory climate, regulatory initiatives with respect\nto financial institutions, products and services, the Consumer Financial\nProtection Bureau (the CFPB) and the regulatory and enforcement activities of\nthe CFPB\n* monetary and fiscal policies of the U.S. Government, including policies of\nthe FDIC, U.S. Department of the Treasury and the Board of Governors of the\nFederal Reserve System, and the effect of these policies on interest rates and\nbusiness in our markets\n* demand for financial services in the Corporation’s market areas\n* the value of securities held in the Corporation’s investment portfolios\n* the quality or composition of the loan portfolios and the value of the\ncollateral securing those loans\n* the inventory level, demand and fluctuations in the pricing of used\nautomobiles, including sales prices of repossessed vehicles\n* the level of automobile loan delinquencies or defaults and our ability to\nrepossess automobiles securing delinquent automobile finance installment\ncontracts\n* the level of net charge-offs on loans and the adequacy of our allowance for\ncredit losses\n* the level of indemnification losses related to mortgage loans sold\n* demand for loan products\n* deposit flows\n* the strength of the Corporation’s counterparties\n* the availability of lines of credit from the FHLB and other counterparties\n* competition from both banks and non-banks, including competition in the\nautomobile finance market\n* services provided by, or the level of the Corporation’s reliance upon,\nthird parties for key services\n* the commercial and residential real estate markets, including changes in\nproperty values\n* the demand for residential mortgages and conditions in the secondary\nresidential mortgage loan markets\n* the Corporation’s technology initiatives and other strategic initiatives\n* the Corporation’s branch expansion, relocation and consolidation plans\n* cyber threats, attacks or events, including emerging issues related to the\ndevelopment and use of artificial intelligence that could give rise to legal\nor regulatory action or increase cybersecurity threats\n* C&F Bank’s product offerings\n* accounting principles, policies and guidelines, and elections made by the\nCorporation thereunder.\nThese risks and uncertainties, and the risks discussed in more detail in the\nCorporation’s Annual Report on Form 10-K for the year ended December 31,\n2025 and other reports filed with the SEC should be considered in evaluating\nthe forward-looking statements contained herein. Readers should not place\nundue reliance on any forward-looking statement. There can be no assurance\nthat actual results will not differ materially from historical results or\nthose expressed in or implied by such forward-looking statements, or that the\nbeliefs, assumptions and expectations underlying such forward-looking\nstatements will be proven to be accurate. Forward-looking statements are made\nas of the date of this press release, and we undertake no obligation to update\nor revise any forward-looking statement to reflect events or circumstances\narising after the date on which the statement was made, except as otherwise\nrequired by law.\n\n Contact: Jason Long, CFO and Secretary \n (804) 843-2360 \n \n\n\n\n C&F Financial Corporation Selected Financial Information (dollars in thousands, except for per share data) (unaudited) \n \n Consolidated Balance Sheets 3/31/2026 12/31/2025 \n Assets \n Cash and due from banks $ 15,286 $ 13,622 \n Interest-bearing deposits in other banks 62,141 65,510 \n Total cash and cash equivalents 77,427 79,132 \n Securities—available for sale at fair value, amortized cost of $485,390 and $471,036, respectively 470,619 458,111 \n Loans held for sale, at fair value 56,120 40,911 \n Loans, net of allowance for credit losses of $39,665 and $39,677, respectively 2,035,387 2,014,899 \n Restricted stock, at cost 3,346 3,680 \n Corporate premises and equipment, net 38,727 39,200 \n Other real estate owned, net of valuation allowance of $0 and $215, respectively — 1,316 \n Accrued interest receivable 11,752 11,726 \n Goodwill 25,191 25,191 \n Other intangible assets, net 884 909 \n Bank-owned life insurance 21,911 21,808 \n Net deferred tax asset 14,411 14,039 \n Other assets 57,973 57,572 \n Total assets $ 2,813,748 $ 2,768,494 \n \n Liabilities \n Deposits \n Noninterest-bearing demand deposits $ 568,420 $ 543,673 \n Savings, money market and interest-bearing demand deposits 907,732 905,683 \n Time deposits 923,304 896,367 \n Total deposits 2,399,456 2,345,723 \n Short-term borrowings 20,000 20,000 \n Long-term borrowings 57,750 67,842 \n Trust preferred capital notes 25,501 25,493 \n Accrued interest payable 4,642 3,745 \n Other liabilities 40,287 43,343 \n Total liabilities 2,547,636 2,506,146 \n \n Commitments and contingent liabilities \n \n Equity \n Common stock ($1.00 par value, 8,000,000 shares authorized, 3,248,149 and 3,245,972 shares issued and outstanding, respectively, includes 100,480 and 100,578 of unvested shares, respectively) 3,148 3,145 \n Additional paid-in capital 1,016 1,078 \n Retained earnings 273,883 268,696 \n Accumulated other comprehensive loss, net (12,577 ) (11,166 ) \n Equity attributable to C&F Financial Corporation 265,470 261,753 \n Noncontrolling interest 642 595 \n Total equity 266,112 262,348 \n Total liabilities and equity $ 2,813,748 $ 2,768,494 \n \n\n\n\n \n For The Quarter Ended \n Consolidated Statements of Income 3/31/2026 12/31/2025 3/31/2025 \n Interest income \n Interest and fees on loans $ 34,715 $ 34,842 $ 32,382 \n Interest on interest-bearing deposits in other banks 651 864 502 \n Interest and dividends on securities \n U.S. treasury, government agencies and corporations 259 270 289 \n Mortgage-backed securities 1,660 1,602 1,394 \n Tax-exempt obligations of states and political subdivisions 1,094 1,049 911 \n Taxable obligations of states and political subdivisions 194 192 195 \n Corporate and other 573 502 315 \n Total interest income 39,146 39,321 35,988 \n Interest expense \n Savings and interest-bearing deposits 2,263 2,328 1,805 \n Time deposits 7,586 7,857 7,964 \n Borrowings 1,236 1,259 859 \n Trust preferred capital notes 352 359 350 \n Total interest expense 11,437 11,803 10,978 \n Net interest income 27,709 27,518 25,010 \n Provision for credit losses 3,600 3,550 3,000 \n Net interest income after provision for credit losses 24,109 23,968 22,010 \n Noninterest income \n Gains on sales of loans 2,545 1,778 1,847 \n Interchange income 1,577 1,580 1,475 \n Service charges on deposit accounts 1,020 1,052 990 \n Investment income from other equity interests 372 210 207 \n Mortgage banking fee income 850 732 570 \n Wealth management services income, net 808 820 732 \n Mortgage lender services income 820 784 536 \n Other service charges and fees 504 504 498 \n Other income, net 54 906 718 \n Total noninterest income 8,550 8,366 7,573 \n Noninterest expenses \n Salaries and employee benefits 14,357 14,027 13,483 \n Occupancy 2,215 2,265 2,193 \n Data processing 3,175 3,081 2,866 \n Professional fees 917 876 921 \n Insurance expense 430 415 491 \n Marketing and advertising expenses 547 625 529 \n Loan processing and collection expenses 873 878 683 \n Other 1,801 2,074 1,893 \n Total noninterest expenses 24,315 24,241 23,059 \n Income before income taxes 8,344 8,093 6,524 \n Income tax expense 1,550 1,377 1,129 \n Net income 6,794 6,716 5,395 \n Less net income attributable to noncontrolling interest 47 15 27 \n Net income attributable to C&F Financial Corporation $ 6,747 $ 6,701 $ 5,368 \n Net income per share - basic and diluted $ 2.08 $ 2.07 $ 1.66 \n \n Weighted average shares outstanding - basic and diluted 3,248,485 3,238,417 3,234,935 \n Dividends declared per share $ 0.48 $ 0.46 $ 0.46 \n \n\n\n\n For The Quarter Ended \n Other Performance Data 3/31/2026 12/31/2025 3/31/2025 \n Net income (loss): \n Community banking $ 7,110 $ 7,292 $ 5,445 \n Mortgage banking 910 250 431 \n Consumer finance (81 ) 233 226 \n Other (1) (1,145 ) (1,059 ) (707 ) \n Total $ 6,794 $ 6,716 $ 5,395 \n \n Mortgage loan originations - mortgage banking: \n Purchases $ 142,526 $ 149,020 $ 101,640 \n Refinancings 37,076 36,936 12,110 \n Total $ 179,602 $ 185,956 $ 113,750 \n \n Mortgage loans sold - mortgage banking $ 164,520 $ 178,671 $ 106,431 \n\n________________________\n\n (1) Includes results of the holding company that are not allocated to the business segments and elimination of inter-segment activity. \n \n\n\n\n For the Quarter Ended \n 3/31/2026 12/31/2025 3/31/2025 \n Average Yield/ Average Yield/ Average Yield/ \n Yield Analysis Balance Rate Balance Rate Balance Rate \n Assets \n Loans: \n Community banking segment (1) $ 1,602,769 5.57 % $ 1,559,824 5.53 % $ 1,467,555 5.52 % \n Mortgage banking segment 38,738 5.65 42,170 6.03 20,968 6.56 \n Consumer finance segment 464,541 10.67 464,312 10.69 465,526 10.56 \n Total loans 2,106,048 6.69 2,066,306 6.70 1,954,049 6.73 \n Securities - available for sale: \n Taxable 344,936 3.11 343,596 2.99 339,450 2.58 \n Tax-exempt (1) 131,702 4.21 127,369 4.16 119,033 3.87 \n Total securities - available for sale 476,638 3.42 470,965 3.31 458,483 2.92 \n Interest-bearing deposits in other banks 79,426 3.32 97,051 3.53 55,830 3.65 \n Total earning assets 2,662,112 6.01 2,634,322 5.98 2,468,362 5.95 \n Allowance for credit losses (40,516 ) (40,259 ) (40,605 ) \n Total non-earning assets 170,659 165,364 154,554 \n Total assets $ 2,792,255 $ 2,759,427 $ 2,582,311 \n \n Liabilities and Equity \n Interest-bearing deposits: \n Interest-bearing demand deposits $ 351,066 0.72 $ 333,690 0.66 $ 332,341 0.67 \n Savings and money market deposit accounts 550,647 1.21 554,179 1.27 489,217 1.00 \n Time deposits 908,808 3.39 892,338 3.49 821,949 3.93 \n Total interest-bearing deposits 1,810,521 2.21 1,780,207 2.27 1,643,507 2.40 \n Borrowings: \n Repurchase agreements — — — — 28,192 1.59 \n Other borrowings 112,324 5.66 113,484 5.70 93,597 4.69 \n Total borrowings 112,324 5.66 113,484 5.70 121,789 3.97 \n Total interest-bearing liabilities 1,922,845 2.41 1,893,691 2.48 1,765,296 2.51 \n Noninterest-bearing demand deposits 558,877 562,011 545,346 \n Other liabilities 43,770 45,751 40,874 \n Total liabilities 2,525,492 2,501,453 2,351,516 \n Equity 266,763 257,974 230,795 \n Total liabilities and equity $ 2,792,255 $ 2,759,427 $ 2,582,311 \n Net interest income \n Interest rate spread 3.60 % 3.50 % 3.44 % \n Interest expense to average earning assets 1.74 % 1.78 % 1.79 % \n Net interest margin 4.27 % 4.20 % 4.16 % \n\n________________________\n\n (1) Interest on tax-exempt loans and securities is presented on a taxable-equivalent basis using the federal corporate income tax rate of 21 percent that was applicable for all periods presented. For more information about these non-GAAP financial measures, please see “Use of Certain Non-GAAP Financial Measures” and “Reconciliation of Certain Non-GAAP Financial Measures.” \n \n\n\n\n Asset Quality 3/31/2026 12/31/2025 \n Community Banking \n Total loans $ 1,614,406 $ 1,590,301 \n Nonaccrual loans $ 1,099 $ 1,135 \n Allowance for credit losses (ACL) $ 17,564 $ 17,418 \n Nonaccrual loans to total loans 0.07 % 0.07 % \n ACL to total loans 1.09 % 1.10 % \n ACL to nonaccrual loans 1,598.18 % 1,534.63 % \n Annualized year-to-date net charge-offs to average loans 0.00 % 0.01 % \n \n Consumer Finance \n Total loans $ 460,646 $ 464,275 \n Nonaccrual loans $ 913 $ 1,022 \n Repossessed assets $ 879 $ 937 \n ACL $ 22,101 $ 22,259 \n Nonaccrual loans to total loans 0.20 % 0.22 % \n ACL to total loans 4.80 % 4.79 % \n ACL to nonaccrual loans 2,420.70 % 2,177.98 % \n Annualized year-to-date net charge-offs to average loans 2.98 % 2.59 % \n\n\n\n \n Market Ratios 3/31/2026 12/31/2025 \n Market value per share $ 72.94 $ 72.59 \n Book value per share $ 81.73 $ 80.64 \n Price to book value ratio 0.89 0.90 \n Tangible book value per share (1) $ 73.70 $ 72.60 \n Price to tangible book value ratio (1) 0.99 1.00 \n Price to earnings ratio (ttm) 8.39 8.76 \n\n________________________\n\n (1) For more information about these non-GAAP financial measures, please see “Use of Certain Non-GAAP Financial Measures” and “Reconciliation of Certain Non-GAAP Financial Measures.” \n \n\n\n\n Minimum Capital \n Capital Ratios 3/31/2026 12/31/2025 Requirements (3) \n C&F Financial Corporation (1) \n Total risk-based capital ratio 15.1 % 15.2 % 8.0 % \n Tier 1 risk-based capital ratio 12.1 % 12.2 % 6.0 % \n Common equity tier 1 capital ratio 11.0 % 11.0 % 4.5 % \n Tier 1 leverage ratio 10.1 % 10.0 % 4.0 % \n \n C&F Bank (2) \n Total risk-based capital ratio 14.7 % 14.8 % 8.0 % \n Tier 1 risk-based capital ratio 13.4 % 13.6 % 6.0 % \n Common equity tier 1 capital ratio 13.4 % 13.6 % 4.5 % \n Tier 1 leverage ratio 11.1 % 11.1 % 4.0 % \n\n________________________\n\n (1) The Corporation, a small bank holding company under applicable regulations and guidance, is not subject to the minimum regulatory capital regulations for bank holding companies. The regulatory requirements that apply to bank holding companies that are subject to regulatory capital requirements are presented above, along with the Corporation’s capital ratios as determined under those regulations. \n (2) All ratios at March 31, 2026 are estimates and subject to change pending regulatory filings. All ratios at December 31, 2025 are presented as filed. \n (3) The ratios presented for minimum capital requirements are those to be considered adequately capitalized. \n \n\n\n\n For The Quarter Ended \n 3/31/2026 12/31/2025 3/31/2025 \n Reconciliation of Certain Non-GAAP Financial Measures \n Return on Average Tangible Common Equity \n Average total equity, as reported $ 266,763 $ 257,974 $ 230,795 \n Average goodwill (25,191 ) (25,191 ) (25,191 ) \n Average other intangible assets (896 ) (924 ) (1,118 ) \n Average noncontrolling interest (590 ) (479 ) (637 ) \n Average tangible common equity $ 240,086 $ 231,380 $ 203,849 \n \n Net income $ 6,794 $ 6,716 $ 5,395 \n Amortization of intangibles 25 50 62 \n Net income attributable to noncontrolling interest (47 ) (15 ) (27 ) \n Net tangible income attributable to C&F Financial Corporation $ 6,772 $ 6,751 $ 5,430 \n \n Annualized return on average equity, as reported 10.19 % 10.41 % 9.35 % \n Annualized return on average tangible common equity 11.28 % 11.67 % 10.65 % \n \n\n\n\n For The Quarter Ended \n 3/31/2026 12/31/2025 3/31/2025 \n Fully Taxable Equivalent Net Interest Income (1) \n Interest income on loans $ 34,715 $ 34,842 $ 32,382 \n FTE adjustment 47 51 46 \n FTE interest and fees on loans $ 34,762 $ 34,893 $ 32,428 \n \n Interest income on securities $ 3,780 $ 3,615 $ 3,104 \n FTE adjustment 291 277 242 \n FTE interest and dividends on securities $ 4,071 $ 3,892 $ 3,346 \n \n Total interest income $ 39,146 $ 39,321 $ 35,988 \n FTE adjustment 338 328 288 \n FTE interest income $ 39,484 $ 39,649 $ 36,276 \n \n Net interest income $ 27,709 $ 27,518 $ 25,010 \n FTE adjustment 338 328 288 \n FTE net interest income $ 28,047 $ 27,846 $ 25,298 \n\n________________\n\n (1) Assuming a tax rate of 21%. \n \n\n\n\n \n 3/31/2026 12/31/2025 \n Tangible Book Value Per Share \n Equity attributable to C&F Financial Corporation $ 265,470 $ 261,753 \n Goodwill (25,191 ) (25,191 ) \n Other intangible assets (884 ) (909 ) \n Tangible equity attributable to C&F Financial Corporation $ 239,395 $ 235,653 \n \n Shares outstanding 3,248,149 3,245,972 \n \n Book value per share $ 81.73 $ 80.64 \n Tangible book value per share $ 73.70 $ 72.60 \n\n\n\n(https://www.globenewswire.com/NewsRoom/AttachmentNg/3c345e8d-a5ac-4f57-a26d-928a64ed2726)\n\n\n\nGlobeNewswire, Inc. 2026","article_body_html":"","raw_payload":{"data":{"id":"nGNX7FwyhL","title":"C&F Financial Corporation Announces Net Income for First Quarter","author":"Globe Newswire","ticker":"CFFI","created":"2026-04-23T16:09:00.474Z","tickers":["CFFI"],"exchange":"NASDAQ","article_body":"TOANO, Va., April 23, 2026 (GLOBE NEWSWIRE) -- C&F Financial Corporation (the\nCorporation) (NASDAQ: CFFI), the holding company for C&F Bank, today reported\nconsolidated net income of $6.8 million for the first quarter of 2026 compared\nto $5.4 million for the first quarter of 2025. The following table presents\nselected financial performance highlights for the periods indicated:\n\n For The Quarter Ended \n Consolidated Financial Highlights (unaudited) 3/31/2026 12/31/2025 3/31/2025 \n Consolidated net income (000's) $ 6,794 $ 6,716 $ 5,395 \n \n Earnings per share - basic and diluted $ 2.08 $ 2.07 $ 1.66 \n \n Annualized return on average assets 0.97 % 0.97 % 0.84 % \n Annualized return on average equity 10.19 % 10.41 % 9.35 % \n Annualized return on average tangible common equity (1) 11.28 % 11.67 % 10.65 % \n\n________________________\n\n (1) For more information about these non-GAAP financial measures, which are not calculated in accordance with generally accepted accounting principles (GAAP), please see “Use of Certain Non-GAAP Financial Measures” and “Reconciliation of Certain Non-GAAP Financial Measures,” below. \n \n\n “C&F started 2026 with strong momentum, delivering earnings per share\ngrowth of 25 percent year over year,” said Tom Cherry, President and Chief\nExecutive Officer of C&F Financial Corporation. “Higher net income at our\ncommunity banking and mortgage banking segments more than offset lower\nearnings at our consumer finance segment, compared to March 31, 2025. Solid\nloan and deposit growth at our community banking segment, approximately a 58\npercent jump in mortgage originations at our mortgage banking segment, and\nhigher net interest margin all helped drive these results.\n\nThe U.S. economy stayed resilient in the first quarter, but risks are\nbuilding, specifically with the conflict in the Middle East and potential\nassociated impacts on interest rates, energy prices, and other economic\neffects. As conditions change, we are prepared to adapt quickly.”\n\nKey highlights for the first quarter of 2026 are as follows.\n* Community banking segment loans grew $24.1 million, or 6.1 percent\nannualized, and $133.2 million, or 9.0 percent, compared to December 31, 2025\nand March 31, 2025, respectively;\n* Consumer finance segment loans decreased $3.6 million, or 3.1 percent\nannualized, and decreased $1.5 million, or less than one percent, compared to\nDecember 31, 2025 and March 31, 2025, respectively;\n* Deposits increased $53.7 million, or 9.2 percent annualized, and $182.8\nmillion, or 8.2 percent, compared to December 31, 2025 and March 31, 2025,\nrespectively. A portion of the increases in deposits compared to March 31,\n2025 was due to the wind-down of the repurchase agreement program with certain\ncommercial deposit customers during the third quarter of 2025. The balance of\nthese repurchase agreements was $25.9 million at March 31, 2025;\n* Consolidated annualized net interest margin was 4.27 percent for the first\nquarter of 2026 compared to 4.16 percent for the first quarter of 2025;\n* The consumer finance segment experienced net charge-offs at an annualized\nrate of 2.98 percent of average total loans for the first quarter of 2026\ncompared to 2.86 percent and 2.64 percent for the fourth quarter and first\nquarter of 2025, respectively;\n* Mortgage banking segment loan originations increased $65.9 million, or 57.9\npercent, to $179.6 million for the first quarter of 2026 compared to the first\nquarter of 2025.\nCommunity Banking Segment. The community banking segment reported net income\nof $7.1 million for the first quarter of 2026 compared to $5.4 million for the\nfirst quarter of 2025 due primarily to:\n* higher interest income resulting from higher average balances of loans and\ncash reserves and higher average interest rates on securities;\npartially offset by:\n* higher salaries and employee benefits due primarily to the addition of a\nseasoned lending team with the expansion into Southwest Virginia in the third\nquarter of 2025 and annual compensation adjustments.\nAverage loans increased $135.2 million, or 9.2 percent, for the first quarter\nof 2026 compared to the first quarter of 2025 due primarily to growth in the\ncommercial real estate, land acquisition and development, and equity lines\nsegments of the loan portfolio. Average deposits increased $180.5 million, or\n8.2 percent, for the first quarter of 2026 compared to the first quarter of\n2025 due primarily to higher balances across all categories of deposits. A\nportion of the increase in average deposits was due to the wind-down of the\nrepurchase agreement program with certain commercial deposit customers during\nthe third quarter of 2025. The average balance of these repurchase agreements\nwas $28.2 million at March 31, 2025.\n\nAverage interest-earning asset yields were higher for the first quarter of\n2026 compared to the first quarter of 2025 due primarily to higher average\ninterest rates on securities available for sale. Average costs of\ninterest-bearing deposits were lower for the first quarter of 2026 compared to\nthe first quarter of 2025 due primarily to a decrease in average interest\nrates paid on time deposits.  \n\nThe community banking segment’s nonaccrual loans were $1.1 million at both\nMarch 31, 2026 and December 31, 2025. The community banking segment recorded\nprovision for credit losses of $300,000 for the first quarter of 2026 compared\nto $100,000 for the first quarter of 2025. At March 31, 2026 the allowance\nfor credit losses was $17.6 million compared to $17.4 million at December 31,\n2025. The allowance for credit losses as a percentage of total loans decreased\nto 1.09 percent at March 31, 2026 from 1.10 percent at December 31, 2025.\nManagement believes that the level of the allowance for credit losses is\nadequate to reflect the net amount expected to be collected.\n\nMortgage Banking Segment. The mortgage banking segment reported net income of\n$910,000 for the first quarter of 2026 compared to $431,000 for the first\nquarter of 2025 due primarily to:\n* higher gains on sales of loans and higher mortgage banking fee income due to\nhigher volume of mortgage loan originations; and\n* higher mortgage lender services fee income;\npartially offset by:\n* higher variable expenses tied to mortgage loan origination volume such as\ncommissions and bonuses, reported in salaries and employee benefits.\nMortgage banking segment loan originations increased 57.9 percent compared to\nthe first quarter of 2025 as the mortgage interest rate environment has become\nmore favorable, which led to an increase in both purchases and refinancings.\nMortgage loan originations for the mortgage banking segment were $179.6\nmillion for the first quarter of 2026, comprised of $142.5 million home\npurchases and $37.1 million refinancings, compared to $113.8 million for the\nfirst quarter of 2025, comprised of $101.7 million home purchases and $12.1\nmillion refinancings. Mortgage loan segment originations include originations\nof loans sold to the community banking segment, at prices similar to those\npaid by third-party investors. These transactions are eliminated to reach\nconsolidated totals.\n\nThrough the Lender Solutions division of the mortgage banking segment,\nmortgage lender services fee income is derived from providing mortgage\norigination functions to third-party mortgage lenders for a fee. Mortgage\nlender services fee income increased to $820,000 for the first quarter of 2026\ncompared to $541,000 for the first quarter of 2025 due primarily to increased\nmortgage loan volume in the industry.\n\nDuring the first quarter of 2026, the mortgage banking segment recorded net\nreversals of provision for indemnification losses of $35,000 compared to net\nreversals of provision for indemnification losses of $25,000 in the same\nperiod of 2025. The allowance for indemnifications was $1.1 million and $1.2\nmillion at March 31, 2026 and December 31, 2025, respectively. The release\nof indemnification reserves in 2026 and 2025 was due primarily to lower volume\nof mortgage loan originations in recent years compared to years prior when the\nindemnification reserve was increased due to higher volume coming out of the\npandemic, improvement in the mortgage banking segment’s assessment of\nborrower payment performance and other factors affecting expected losses on\nmortgage loans sold in the secondary market, such as time since origination.\nManagement believes that the indemnification reserve is sufficient to absorb\nlosses related to loans that have been sold in the secondary market.\n\nConsumer Finance Segment.   The consumer finance segment reported a net loss\nof $81,000 for the first quarter of 2026 compared to net income of $226,000\nfor the first quarter of 2025 due primarily to:\n* higher provision for credit losses due primarily to higher net charge-offs;\nand\n* higher professional fees and higher loan processing and collection expenses;\npartially offset by:\n* higher interest income resulting from higher loan yields due primarily to a\nshift in the mix of the loan portfolio with the termination of the\nlower-yielding marine and recreational vehicle loan program; and\n* lower interest expense allocation on borrowings from the community banking\nsegment as a result of lower average interest rates;\nAverage loans decreased $1.0 million, or less than one percent, for the first\nquarter of 2026 compared to the same period in 2025 due primarily to a\ndecrease in marine and recreational vehicle loans as the third party\nadministrator of that program significantly decreased sales of those loans to\noutside parties during 2025, which led to the consumer finance segment ending\nfuture purchases under the program during the third quarter of 2025. The\nmarine and recreational vehicle portfolio is expected to run off over the next\nseveral years as scheduled borrower payments are made on the existing loans.\nThe consumer finance segment experienced net charge-offs at an annualized rate\nof 2.98 percent of average total loans for the first quarter of 2026 compared\nto 2.64 percent for the first quarter of 2025 due primarily to an increase in\ndelinquent loans and repossessions. At March 31, 2026, total delinquent loans\nas a percentage of total loans was 3.35 percent compared to 4.38 percent at\nDecember 31, 2025 and 3.05 percent at March 31, 2025.\n\nThe consumer finance segment, at times, offers payment deferrals as a\nportfolio management technique to achieve higher ultimate cash collections on\nselect loan accounts. A significant reliance on deferrals as a means of\nmanaging collections may result in a lengthening of the loss confirmation\nperiod, which would increase expectations of credit losses inherent in the\nportfolio. Average amounts of payment deferrals of automobile loans on a\nmonthly basis, which are not included in delinquent loans, were 1.34 percent\nof average automobile loans outstanding during the first quarter of 2026\ncompared to 2.50 percent during the fourth quarter of 2025 and 1.75 percent\nduring the first quarter of 2025.\n\nThe allowance for credit losses was $22.1 million, or 4.80 percent of total\nloans, at March 31, 2026 compared to $22.3 million, or 4.79 percent of total\nloans, at December 31, 2025. Management believes that the level of the\nallowance for credit losses is adequate to reflect the net amount expected to\nbe collected. If loan performance deteriorates resulting in further elevated\ndelinquencies or net charge-offs, the provision for credit losses may increase\nin future periods.\n\nLiquidity. The objective of the Corporation’s liquidity management is to\nensure the continuous availability of funds to satisfy the credit needs of our\ncustomers and the demands of our depositors, creditors and investors.\nUninsured deposits represent an estimate of amounts above the Federal Deposit\nInsurance Corporation (FDIC) insurance coverage limit of $250,000. As of\nMarch 31, 2026, the Corporation’s uninsured deposits were approximately\n$745.7 million, or 31.1 percent of total deposits. Excluding intercompany cash\nholdings and municipal deposits, which are secured with pledged securities,\namounts uninsured were approximately $578.4 million, or 24.1 percent of total\ndeposits as of March 31, 2026. The Corporation’s liquid assets, which\ninclude cash and due from banks, interest-bearing deposits at other banks and\nnonpledged securities available for sale, were $428.9 million and borrowing\navailability was $681.4 million as of March 31, 2026, which in total exceed\nuninsured deposits, excluding intercompany cash holdings and secured municipal\ndeposits, by $531.9 million as of March 31, 2026.\n\nIn addition to deposits, the Corporation utilizes short-term and long-term\nborrowings as sources of funds. Short-term borrowings from the Federal Reserve\nBank and the Federal Home Loan Bank of Atlanta (FHLB) may be used to fund the\nCorporation’s day-to-day operations. Total borrowings decreased to $103.3\nmillion at March 31, 2026 from $113.3 million at December 31, 2025 due\nprimarily to the repayment of FHLB advances during the first quarter of 2026.\n\nAdditional sources of liquidity available to the Corporation include cash\nflows from operations, loan payments and payoffs, deposit growth, maturities,\ncalls and sales of securities, the issuance of brokered certificates of\ndeposit and the capacity to borrow additional funds.\n\nCapital and Dividends.   During the first quarter of 2026, the Corporation\nincreased its quarterly cash dividend by 4 percent, to 48 cents per share,\ncompared to the previous quarterly dividend. This dividend, which was paid to\nshareholders on April 1, 2026, represents a payout ratio of 23.1 percent of\nearnings per share for the first quarter of 2026. The Board of Directors of\nthe Corporation continually reviews the amount of cash dividends per share and\nthe resulting dividend payout ratio in light of changes in economic\nconditions, current and future capital levels and requirements, and expected\nfuture earnings.\n\nTotal consolidated equity increased $3.8 million at March 31, 2026, compared\nto December 31, 2025, due primarily to net income, partially offset by\ndividends paid on the Corporation’s common stock and higher unrealized\nlosses in the market value of securities available for sale, which are\nrecognized as a component of other comprehensive income. The Corporation’s\nsecurities available for sale are fixed income debt securities and their\nunrealized loss position is a result of increased market interest rates since\nthey were purchased. The Corporation expects to recover its investments in\ndebt securities through scheduled payments of principal and interest.\nUnrealized losses are not expected to affect the earnings or regulatory\ncapital of the Corporation or C&F Bank. The accumulated other comprehensive\nloss related to the Corporation’s securities available for sale, net of\ndeferred income taxes, increased to $11.7 million at March 31, 2026 compared\nto $10.2 million at December 31, 2025 due primarily to fluctuations in debt\nsecurity market interest rates.\n\nAs of March 31, 2026, C&F Bank was categorized as well capitalized under the\nFDIC’s regulatory framework for prompt corrective action. To be categorized\nas well capitalized under regulations applicable at March 31, 2026, C&F Bank\nwas required to maintain minimum total risk-based, Tier 1 risk-based, CET1\nrisk-based and Tier 1 leverage ratios. In addition to the regulatory\nrisk-based capital requirements, C&F Bank must maintain a capital conservation\nbuffer of additional capital of 2.5 percent of risk-weighted assets as\nrequired by the Basel III capital rules. The Corporation and C&F Bank exceeded\nthese ratios at March 31, 2026. For additional information, see “Capital\nRatios” below. The above mentioned ratios are not impacted by unrealized\nlosses on securities available for sale. In the event that all of these\nunrealized losses become realized into earnings, the Corporation and C&F Bank\nwould both continue to exceed minimum capital requirements, including the\ncapital conservation buffer, and be considered well capitalized.\n\nThe Corporation has a share repurchase program, effective January 1, 2026\nthrough December 31, 2026, that was authorized by the Board of Directors to\nrepurchase up to $5.0 million of the Corporation’s common stock (the 2026\nRepurchase Program). During the first quarter of 2026, the Corporation\nrepurchased 4,279 shares, or $309,000 of its common stock under the 2026\nRepurchase Program.\n\nAbout C&F Financial Corporation.   The Corporation’s common stock is\nlisted for trading on The Nasdaq Stock Market under the symbol CFFI. The\ncommon stock closed at a price of $76.30 per share on April 22, 2026. At\nMarch 31, 2026, the book value per share of the Corporation was $81.73 and\nthe tangible book value per share was $73.70. For more information about the\nCorporation’s tangible book value per share, which is not calculated in\naccordance with GAAP, please see “Use of Certain Non-GAAP Financial\nMeasures” and “Reconciliation of Certain Non-GAAP Financial Measures,”\nbelow.\n\nC&F Bank operates 31 banking offices and five commercial loan offices located\nthroughout Virginia and offers full wealth management services through its\nsubsidiary C&F Wealth Management, Inc. C&F Mortgage Corporation and its\nsubsidiary C&F Select LLC provide mortgage loan origination services through\noffices located in Virginia and the surrounding states. C&F Finance Company\nprovides automobile, marine and recreational vehicle loans through indirect\nlending programs offered primarily in the Mid-Atlantic, Midwest and Southern\nUnited States from its headquarters in Henrico, Virginia.\n\nAdditional information regarding the Corporation’s products and services, as\nwell as access to its filings with the Securities and Exchange Commission\n(SEC), are available on the Corporation’s website at http://www.cffc.com.\n\nUse of Certain Non-GAAP Financial Measures. The accounting and reporting\npolicies of the Corporation conform to GAAP in the United States and\nprevailing practices in the banking industry. However, certain non-GAAP\nmeasures are used by management to supplement the evaluation of the\nCorporation’s performance. These include net tangible income attributable to\nthe Corporation, return on average tangible common equity (ROTCE), tangible\nbook value per share, price to tangible book value ratio, and the following\nfully-taxable equivalent (FTE) measures: interest and fees on loans-FTE,\ninterest and dividends on securities-FTE, total interest income-FTE and net\ninterest income-FTE. Interest on tax-exempt loans and securities is presented\non a taxable-equivalent basis (which converts the income on loans and\ninvestments for which no income taxes are paid to the equivalent yield as if\nincome taxes were paid) using the federal corporate income tax rate of 21\npercent that was applicable for all periods presented.\n\nManagement believes that the use of these non-GAAP measures provides\nmeaningful information about operating performance by enhancing comparability\nwith other financial periods, other financial institutions, and between\ndifferent sources of interest income. The non-GAAP measures used by management\nenhance comparability by excluding the effects of balances of intangible\nassets, including goodwill, that vary significantly between institutions, and\ntax benefits that are not consistent across different opportunities for\ninvestment. These non-GAAP financial measures should not be considered an\nalternative to, or more important than, GAAP-basis financial statements, and\nother bank holding companies may define or calculate these or similar measures\ndifferently. A reconciliation of the non-GAAP financial measures used by the\nCorporation to evaluate and measure the Corporation’s performance to the\nmost directly comparable GAAP financial measures is presented below in the\n“Reconciliation of Certain Non-GAAP Financial Measures,” “Fully Taxable\nEquivalent Net Interest Income” and “Tangible Book Value Per Share”\ntables.\n\nForward-Looking Statements.   This press release contains statements\nconcerning the Corporation’s expectations, plans, objectives or beliefs\nregarding future financial performance and other statements that are not\nhistorical facts, which may constitute “forward-looking statements” as\ndefined by federal securities laws. Forward-looking statements generally can\nbe identified by the use of words such as “believe,” “expect,”\n“anticipate,” “estimate,” “plan,” “may,” “might,”\n“will,” “intend,” “target,” “should,” “could,” or similar\nexpressions, are not statements of historical fact, and are based on\nmanagement’s beliefs, assumptions and expectations regarding future events\nor performance as of the date of this press release, taking into account all\ninformation currently available. These statements may include, but are not\nlimited to: statements made in Mr. Cherry’s quotation and statements\nregarding expected future operations and financial performance; expected\ntrends in yields on loans; expected future recovery of investments in debt\nsecurities; future dividend payments and share repurchases; deposit trends;\ncharge-offs and delinquencies; changes in cost of funds and net interest\nmargin and items affecting net interest margin; strategic business\ninitiatives, including our expansion into Southwest Virginia, and the\nanticipated effects thereof; changes in interest rates and the effects thereof\non net interest income; expected impact of unrealized losses on earnings and\nregulatory capital of the Corporation or C&F Bank; expected renewal of\nunsecured federal funds agreements; mortgage loan originations; expectations\nregarding C&F Bank’s regulatory risk-based capital requirement levels;\ncompetition; our loan portfolio; our digital services; the adoption of\nartificial intelligence; deposit trends; improving operational efficiencies;\nretention of qualified loan officers and expectations regarding new mortgage\nloan originations; higher quality automobile loan contracts; expectations\nregarding the runoff of the marine and recreational vehicle portfolio;\ntechnology initiatives; our diversified business strategy; asset quality;\ncredit quality; adequacy of allowances for credit losses and the level of\nfuture charge-offs; market interest rates and housing inventory and resulting\neffects on mortgage loan origination volume; sources of liquidity; adequacy of\nthe reserve for indemnification losses related to loans sold in the secondary\nmarket; capital levels; the effect of future market and industry trends and\nconditions; the effects of future interest rate levels and fluctuations;\ncybersecurity risks; and inflation. These forward-looking statements are\nsubject to significant risks and uncertainties due to factors that could have\na material adverse effect on the operations and future prospects of the\nCorporation including, but not limited to, changes in:\n* interest rates, such as volatility in short-term interest rates or yields on\nU.S. Treasury bonds, fluctuations in interest rates following actions by the\nFederal Reserve and increases or volatility in mortgage interest rates\n* general business conditions, as well as conditions within the financial\nmarkets\n* general economic conditions, including unemployment levels, inflation rates,\nsupply chain disruptions, slowdowns in economic growth and government\nshutdowns\n* general market conditions, including disruptions due to pandemics or\nsignificant health hazards, severe weather conditions, natural disasters,\nterrorist activities, financial crises, political crises, changes in trade\npolicy and the implementation of tariffs, geopolitical tensions, war and other\nmilitary conflicts (including the conflict in the Middle East and potential\nassociated impacts on interest rates and energy prices) or other major events,\nor the prospect of these events\n* average loan yields and securities yields and average costs of\ninterest-bearing deposits and borrowings\n* financial services industry conditions, including bank failures or rumors of\nsuch failures, the soundness of other financial institutions or concerns\ninvolving liquidity, along with actions taken by governmental agencies to\naddress such conditions, and the effects on financial institutions, including\nus, on, among other things, the ability to attract or retain depositors and to\nborrow or raise capital\n* labor market conditions, including attracting, hiring, training, motivating\nand retaining qualified employees\n* the legislative and regulatory climate, regulatory initiatives with respect\nto financial institutions, products and services, the Consumer Financial\nProtection Bureau (the CFPB) and the regulatory and enforcement activities of\nthe CFPB\n* monetary and fiscal policies of the U.S. Government, including policies of\nthe FDIC, U.S. Department of the Treasury and the Board of Governors of the\nFederal Reserve System, and the effect of these policies on interest rates and\nbusiness in our markets\n* demand for financial services in the Corporation’s market areas\n* the value of securities held in the Corporation’s investment portfolios\n* the quality or composition of the loan portfolios and the value of the\ncollateral securing those loans\n* the inventory level, demand and fluctuations in the pricing of used\nautomobiles, including sales prices of repossessed vehicles\n* the level of automobile loan delinquencies or defaults and our ability to\nrepossess automobiles securing delinquent automobile finance installment\ncontracts\n* the level of net charge-offs on loans and the adequacy of our allowance for\ncredit losses\n* the level of indemnification losses related to mortgage loans sold\n* demand for loan products\n* deposit flows\n* the strength of the Corporation’s counterparties\n* the availability of lines of credit from the FHLB and other counterparties\n* competition from both banks and non-banks, including competition in the\nautomobile finance market\n* services provided by, or the level of the Corporation’s reliance upon,\nthird parties for key services\n* the commercial and residential real estate markets, including changes in\nproperty values\n* the demand for residential mortgages and conditions in the secondary\nresidential mortgage loan markets\n* the Corporation’s technology initiatives and other strategic initiatives\n* the Corporation’s branch expansion, relocation and consolidation plans\n* cyber threats, attacks or events, including emerging issues related to the\ndevelopment and use of artificial intelligence that could give rise to legal\nor regulatory action or increase cybersecurity threats\n* C&F Bank’s product offerings\n* accounting principles, policies and guidelines, and elections made by the\nCorporation thereunder.\nThese risks and uncertainties, and the risks discussed in more detail in the\nCorporation’s Annual Report on Form 10-K for the year ended December 31,\n2025 and other reports filed with the SEC should be considered in evaluating\nthe forward-looking statements contained herein. Readers should not place\nundue reliance on any forward-looking statement. There can be no assurance\nthat actual results will not differ materially from historical results or\nthose expressed in or implied by such forward-looking statements, or that the\nbeliefs, assumptions and expectations underlying such forward-looking\nstatements will be proven to be accurate. Forward-looking statements are made\nas of the date of this press release, and we undertake no obligation to update\nor revise any forward-looking statement to reflect events or circumstances\narising after the date on which the statement was made, except as otherwise\nrequired by law.\n\n Contact: Jason Long, CFO and Secretary \n (804) 843-2360 \n \n\n\n\n C&F Financial Corporation Selected Financial Information (dollars in thousands, except for per share data) (unaudited) \n \n Consolidated Balance Sheets 3/31/2026 12/31/2025 \n Assets \n Cash and due from banks $ 15,286 $ 13,622 \n Interest-bearing deposits in other banks 62,141 65,510 \n Total cash and cash equivalents 77,427 79,132 \n Securities—available for sale at fair value, amortized cost of $485,390 and $471,036, respectively 470,619 458,111 \n Loans held for sale, at fair value 56,120 40,911 \n Loans, net of allowance for credit losses of $39,665 and $39,677, respectively 2,035,387 2,014,899 \n Restricted stock, at cost 3,346 3,680 \n Corporate premises and equipment, net 38,727 39,200 \n Other real estate owned, net of valuation allowance of $0 and $215, respectively — 1,316 \n Accrued interest receivable 11,752 11,726 \n Goodwill 25,191 25,191 \n Other intangible assets, net 884 909 \n Bank-owned life insurance 21,911 21,808 \n Net deferred tax asset 14,411 14,039 \n Other assets 57,973 57,572 \n Total assets $ 2,813,748 $ 2,768,494 \n \n Liabilities \n Deposits \n Noninterest-bearing demand deposits $ 568,420 $ 543,673 \n Savings, money market and interest-bearing demand deposits 907,732 905,683 \n Time deposits 923,304 896,367 \n Total deposits 2,399,456 2,345,723 \n Short-term borrowings 20,000 20,000 \n Long-term borrowings 57,750 67,842 \n Trust preferred capital notes 25,501 25,493 \n Accrued interest payable 4,642 3,745 \n Other liabilities 40,287 43,343 \n Total liabilities 2,547,636 2,506,146 \n \n Commitments and contingent liabilities \n \n Equity \n Common stock ($1.00 par value, 8,000,000 shares authorized, 3,248,149 and 3,245,972 shares issued and outstanding, respectively, includes 100,480 and 100,578 of unvested shares, respectively) 3,148 3,145 \n Additional paid-in capital 1,016 1,078 \n Retained earnings 273,883 268,696 \n Accumulated other comprehensive loss, net (12,577 ) (11,166 ) \n Equity attributable to C&F Financial Corporation 265,470 261,753 \n Noncontrolling interest 642 595 \n Total equity 266,112 262,348 \n Total liabilities and equity $ 2,813,748 $ 2,768,494 \n \n\n\n\n \n For The Quarter Ended \n Consolidated Statements of Income 3/31/2026 12/31/2025 3/31/2025 \n Interest income \n Interest and fees on loans $ 34,715 $ 34,842 $ 32,382 \n Interest on interest-bearing deposits in other banks 651 864 502 \n Interest and dividends on securities \n U.S. treasury, government agencies and corporations 259 270 289 \n Mortgage-backed securities 1,660 1,602 1,394 \n Tax-exempt obligations of states and political subdivisions 1,094 1,049 911 \n Taxable obligations of states and political subdivisions 194 192 195 \n Corporate and other 573 502 315 \n Total interest income 39,146 39,321 35,988 \n Interest expense \n Savings and interest-bearing deposits 2,263 2,328 1,805 \n Time deposits 7,586 7,857 7,964 \n Borrowings 1,236 1,259 859 \n Trust preferred capital notes 352 359 350 \n Total interest expense 11,437 11,803 10,978 \n Net interest income 27,709 27,518 25,010 \n Provision for credit losses 3,600 3,550 3,000 \n Net interest income after provision for credit losses 24,109 23,968 22,010 \n Noninterest income \n Gains on sales of loans 2,545 1,778 1,847 \n Interchange income 1,577 1,580 1,475 \n Service charges on deposit accounts 1,020 1,052 990 \n Investment income from other equity interests 372 210 207 \n Mortgage banking fee income 850 732 570 \n Wealth management services income, net 808 820 732 \n Mortgage lender services income 820 784 536 \n Other service charges and fees 504 504 498 \n Other income, net 54 906 718 \n Total noninterest income 8,550 8,366 7,573 \n Noninterest expenses \n Salaries and employee benefits 14,357 14,027 13,483 \n Occupancy 2,215 2,265 2,193 \n Data processing 3,175 3,081 2,866 \n Professional fees 917 876 921 \n Insurance expense 430 415 491 \n Marketing and advertising expenses 547 625 529 \n Loan processing and collection expenses 873 878 683 \n Other 1,801 2,074 1,893 \n Total noninterest expenses 24,315 24,241 23,059 \n Income before income taxes 8,344 8,093 6,524 \n Income tax expense 1,550 1,377 1,129 \n Net income 6,794 6,716 5,395 \n Less net income attributable to noncontrolling interest 47 15 27 \n Net income attributable to C&F Financial Corporation $ 6,747 $ 6,701 $ 5,368 \n Net income per share - basic and diluted $ 2.08 $ 2.07 $ 1.66 \n \n Weighted average shares outstanding - basic and diluted 3,248,485 3,238,417 3,234,935 \n Dividends declared per share $ 0.48 $ 0.46 $ 0.46 \n \n\n\n\n For The Quarter Ended \n Other Performance Data 3/31/2026 12/31/2025 3/31/2025 \n Net income (loss): \n Community banking $ 7,110 $ 7,292 $ 5,445 \n Mortgage banking 910 250 431 \n Consumer finance (81 ) 233 226 \n Other (1) (1,145 ) (1,059 ) (707 ) \n Total $ 6,794 $ 6,716 $ 5,395 \n \n Mortgage loan originations - mortgage banking: \n Purchases $ 142,526 $ 149,020 $ 101,640 \n Refinancings 37,076 36,936 12,110 \n Total $ 179,602 $ 185,956 $ 113,750 \n \n Mortgage loans sold - mortgage banking $ 164,520 $ 178,671 $ 106,431 \n\n________________________\n\n (1) Includes results of the holding company that are not allocated to the business segments and elimination of inter-segment activity. \n \n\n\n\n For the Quarter Ended \n 3/31/2026 12/31/2025 3/31/2025 \n Average Yield/ Average Yield/ Average Yield/ \n Yield Analysis Balance Rate Balance Rate Balance Rate \n Assets \n Loans: \n Community banking segment (1) $ 1,602,769 5.57 % $ 1,559,824 5.53 % $ 1,467,555 5.52 % \n Mortgage banking segment 38,738 5.65 42,170 6.03 20,968 6.56 \n Consumer finance segment 464,541 10.67 464,312 10.69 465,526 10.56 \n Total loans 2,106,048 6.69 2,066,306 6.70 1,954,049 6.73 \n Securities - available for sale: \n Taxable 344,936 3.11 343,596 2.99 339,450 2.58 \n Tax-exempt (1) 131,702 4.21 127,369 4.16 119,033 3.87 \n Total securities - available for sale 476,638 3.42 470,965 3.31 458,483 2.92 \n Interest-bearing deposits in other banks 79,426 3.32 97,051 3.53 55,830 3.65 \n Total earning assets 2,662,112 6.01 2,634,322 5.98 2,468,362 5.95 \n Allowance for credit losses (40,516 ) (40,259 ) (40,605 ) \n Total non-earning assets 170,659 165,364 154,554 \n Total assets $ 2,792,255 $ 2,759,427 $ 2,582,311 \n \n Liabilities and Equity \n Interest-bearing deposits: \n Interest-bearing demand deposits $ 351,066 0.72 $ 333,690 0.66 $ 332,341 0.67 \n Savings and money market deposit accounts 550,647 1.21 554,179 1.27 489,217 1.00 \n Time deposits 908,808 3.39 892,338 3.49 821,949 3.93 \n Total interest-bearing deposits 1,810,521 2.21 1,780,207 2.27 1,643,507 2.40 \n Borrowings: \n Repurchase agreements — — — — 28,192 1.59 \n Other borrowings 112,324 5.66 113,484 5.70 93,597 4.69 \n Total borrowings 112,324 5.66 113,484 5.70 121,789 3.97 \n Total interest-bearing liabilities 1,922,845 2.41 1,893,691 2.48 1,765,296 2.51 \n Noninterest-bearing demand deposits 558,877 562,011 545,346 \n Other liabilities 43,770 45,751 40,874 \n Total liabilities 2,525,492 2,501,453 2,351,516 \n Equity 266,763 257,974 230,795 \n Total liabilities and equity $ 2,792,255 $ 2,759,427 $ 2,582,311 \n Net interest income \n Interest rate spread 3.60 % 3.50 % 3.44 % \n Interest expense to average earning assets 1.74 % 1.78 % 1.79 % \n Net interest margin 4.27 % 4.20 % 4.16 % \n\n________________________\n\n (1) Interest on tax-exempt loans and securities is presented on a taxable-equivalent basis using the federal corporate income tax rate of 21 percent that was applicable for all periods presented. For more information about these non-GAAP financial measures, please see “Use of Certain Non-GAAP Financial Measures” and “Reconciliation of Certain Non-GAAP Financial Measures.” \n \n\n\n\n Asset Quality 3/31/2026 12/31/2025 \n Community Banking \n Total loans $ 1,614,406 $ 1,590,301 \n Nonaccrual loans $ 1,099 $ 1,135 \n Allowance for credit losses (ACL) $ 17,564 $ 17,418 \n Nonaccrual loans to total loans 0.07 % 0.07 % \n ACL to total loans 1.09 % 1.10 % \n ACL to nonaccrual loans 1,598.18 % 1,534.63 % \n Annualized year-to-date net charge-offs to average loans 0.00 % 0.01 % \n \n Consumer Finance \n Total loans $ 460,646 $ 464,275 \n Nonaccrual loans $ 913 $ 1,022 \n Repossessed assets $ 879 $ 937 \n ACL $ 22,101 $ 22,259 \n Nonaccrual loans to total loans 0.20 % 0.22 % \n ACL to total loans 4.80 % 4.79 % \n ACL to nonaccrual loans 2,420.70 % 2,177.98 % \n Annualized year-to-date net charge-offs to average loans 2.98 % 2.59 % \n\n\n\n \n Market Ratios 3/31/2026 12/31/2025 \n Market value per share $ 72.94 $ 72.59 \n Book value per share $ 81.73 $ 80.64 \n Price to book value ratio 0.89 0.90 \n Tangible book value per share (1) $ 73.70 $ 72.60 \n Price to tangible book value ratio (1) 0.99 1.00 \n Price to earnings ratio (ttm) 8.39 8.76 \n\n________________________\n\n (1) For more information about these non-GAAP financial measures, please see “Use of Certain Non-GAAP Financial Measures” and “Reconciliation of Certain Non-GAAP Financial Measures.” \n \n\n\n\n Minimum Capital \n Capital Ratios 3/31/2026 12/31/2025 Requirements (3) \n C&F Financial Corporation (1) \n Total risk-based capital ratio 15.1 % 15.2 % 8.0 % \n Tier 1 risk-based capital ratio 12.1 % 12.2 % 6.0 % \n Common equity tier 1 capital ratio 11.0 % 11.0 % 4.5 % \n Tier 1 leverage ratio 10.1 % 10.0 % 4.0 % \n \n C&F Bank (2) \n Total risk-based capital ratio 14.7 % 14.8 % 8.0 % \n Tier 1 risk-based capital ratio 13.4 % 13.6 % 6.0 % \n Common equity tier 1 capital ratio 13.4 % 13.6 % 4.5 % \n Tier 1 leverage ratio 11.1 % 11.1 % 4.0 % \n\n________________________\n\n (1) The Corporation, a small bank holding company under applicable regulations and guidance, is not subject to the minimum regulatory capital regulations for bank holding companies. The regulatory requirements that apply to bank holding companies that are subject to regulatory capital requirements are presented above, along with the Corporation’s capital ratios as determined under those regulations. \n (2) All ratios at March 31, 2026 are estimates and subject to change pending regulatory filings. All ratios at December 31, 2025 are presented as filed. \n (3) The ratios presented for minimum capital requirements are those to be considered adequately capitalized. \n \n\n\n\n For The Quarter Ended \n 3/31/2026 12/31/2025 3/31/2025 \n Reconciliation of Certain Non-GAAP Financial Measures \n Return on Average Tangible Common Equity \n Average total equity, as reported $ 266,763 $ 257,974 $ 230,795 \n Average goodwill (25,191 ) (25,191 ) (25,191 ) \n Average other intangible assets (896 ) (924 ) (1,118 ) \n Average noncontrolling interest (590 ) (479 ) (637 ) \n Average tangible common equity $ 240,086 $ 231,380 $ 203,849 \n \n Net income $ 6,794 $ 6,716 $ 5,395 \n Amortization of intangibles 25 50 62 \n Net income attributable to noncontrolling interest (47 ) (15 ) (27 ) \n Net tangible income attributable to C&F Financial Corporation $ 6,772 $ 6,751 $ 5,430 \n \n Annualized return on average equity, as reported 10.19 % 10.41 % 9.35 % \n Annualized return on average tangible common equity 11.28 % 11.67 % 10.65 % \n \n\n\n\n For The Quarter Ended \n 3/31/2026 12/31/2025 3/31/2025 \n Fully Taxable Equivalent Net Interest Income (1) \n Interest income on loans $ 34,715 $ 34,842 $ 32,382 \n FTE adjustment 47 51 46 \n FTE interest and fees on loans $ 34,762 $ 34,893 $ 32,428 \n \n Interest income on securities $ 3,780 $ 3,615 $ 3,104 \n FTE adjustment 291 277 242 \n FTE interest and dividends on securities $ 4,071 $ 3,892 $ 3,346 \n \n Total interest income $ 39,146 $ 39,321 $ 35,988 \n FTE adjustment 338 328 288 \n FTE interest income $ 39,484 $ 39,649 $ 36,276 \n \n Net interest income $ 27,709 $ 27,518 $ 25,010 \n FTE adjustment 338 328 288 \n FTE net interest income $ 28,047 $ 27,846 $ 25,298 \n\n________________\n\n (1) Assuming a tax rate of 21%. \n \n\n\n\n \n 3/31/2026 12/31/2025 \n Tangible Book Value Per Share \n Equity attributable to C&F Financial Corporation $ 265,470 $ 261,753 \n Goodwill (25,191 ) (25,191 ) \n Other intangible assets (884 ) (909 ) \n Tangible equity attributable to C&F Financial Corporation $ 239,395 $ 235,653 \n \n Shares outstanding 3,248,149 3,245,972 \n \n Book value per share $ 81.73 $ 80.64 \n Tangible book value per share $ 73.70 $ 72.60 \n\n\n\n(https://www.globenewswire.com/NewsRoom/AttachmentNg/3c345e8d-a5ac-4f57-a26d-928a64ed2726)\n\n\n\nGlobeNewswire, Inc. 2026"},"type":"article","timestamp":"2026-04-23T16:09:00.55264104Z","server_sent_at_ms":1776960540552},"received_at":"2026-04-23T16:09:00.831Z","source_url":null},"analysis":{"id":"5433","press_release_id":"7248","analysis_json":{"industry":{"label":"Banks","sector":"Financials"},"redFlags":["Consumer finance segment reported a net loss of $81,000 compared to net income of $226,000 in the prior year","Consumer finance segment net charge-offs increased to an annualized rate of 2.98% from 2.64% in the prior year"],"eventType":"earnings","narrative":"C&F Financial reported Q1 2026 net income of $6.8 million, or $2.08 per share, a 25% increase in EPS compared to the prior year.\n\nGrowth was driven by strong performance in the community banking and mortgage banking segments, offsetting a loss in the consumer finance segment.\n\nThe Board increased the quarterly cash dividend by 4% to 48 cents per share and repurchased approximately $309,000 of common stock.","sentiment":"bullish","agentHooks":{"shouldPost":false,"suggestedAngle":"EPS growth and dividend hike highlight momentum, but consumer finance credit quality bears watching."},"keyFigures":{"eps":2.08,"revenueYoy":"0.25"},"quotedText":"C&F started 2026 with strong momentum, delivering earnings per share growth of 25 percent year over year","namedEntities":{"people":[{"name":"Tom Cherry","role":"President and Chief Executive Officer"},{"name":"Jason Long","role":"CFO and Secretary"}],"products":[],"companies":[{"name":"C&F Financial Corporation","ticker":"CFFI"},{"name":"C&F Bank"}],"dollarAmounts":[{"amount":"$6.8 million","context":"consolidated net income for the first quarter of 2026"},{"amount":"$2.08","context":"earnings per share for the first quarter of 2026"},{"amount":"48 cents","context":"quarterly cash dividend"}]},"materialImpact":{"score":2,"reasoning":"EPS grew 25% year-over-year and the dividend was raised 4%, signaling strong momentum. However, the absence of explicit consensus comparison or major guidance changes limits the materiality to a routine quarterly update."},"tickerRelevance":{"others":[],"primary":"CFFI"},"eventTypeSecondary":["dividend"]},"event_type":"earnings","event_type_secondary":["dividend"],"sentiment":"bullish","material_impact_score":2,"narrative":"C&F Financial reported Q1 2026 net income of $6.8 million, or $2.08 per share, a 25% increase in EPS compared to the prior year.\n\nGrowth was driven by strong performance in the community banking and mortgage banking segments, offsetting a loss in the consumer finance segment.\n\nThe Board increased the quarterly cash dividend by 4% to 48 cents per share and repurchased approximately $309,000 of common stock.","key_figures":{"eps":2.08,"revenueYoy":"0.25"},"named_entities":{"people":[{"name":"Tom Cherry","role":"President and Chief Executive Officer"},{"name":"Jason Long","role":"CFO and Secretary"}],"products":[],"companies":[{"name":"C&F Financial Corporation","ticker":"CFFI"},{"name":"C&F Bank"}],"dollarAmounts":[{"amount":"$6.8 million","context":"consolidated net income for the first quarter of 2026"},{"amount":"$2.08","context":"earnings per share for the first quarter of 2026"},{"amount":"48 cents","context":"quarterly cash dividend"}]},"model_name":"glm-4.7","prompt_hash":"sha256:2f2748f0fcc8c4f2","schema_hash":"sha256:ad96b863d7123008","created_at":"2026-04-23T22:20:26.817Z","global_importance":3,"audience_relevance":3,"importance_components":{"method":"backfill-heuristic","signals":{"bodyLong":false,"headlineTier1":false,"tickerCovered":false,"hadSignificance":false},"version":1,"computedAt":"2026-04-27T11:52:55.065Z"}},"durationMs":22670,"modelName":"glm-4.7"}}