C&F Financial Corporation

What they do

The Corporation owns Citizens and Farmers Bank (C&F Bank), an independent commercial bank chartered in Virginia, and operates three reportable segments: community banking, mortgage banking, and consumer finance. Community banking is conducted through C&F Bank plus C&F Wealth Management, C&F Insurance Services and CVB Title Services. Mortgage banking runs through C&F Mortgage Corporation and its 51%-owned subsidiary C&F Select LLC, originating residential loans for sale into the secondary market. Consumer finance is conducted through C&F Finance Company, which originates consumer loans.

Revenue drivers

• Community banking — Interest on loans and investment securities, deposit account and debit card fees, wealth management and insurance revenue; segment net income was $27.2 million in 2025 and segment assets totaled $2.7 billion at December 31, 2025.
• Mortgage banking — Originates residential mortgage loans for sale to secondary-market investors through offices in Virginia and surrounding states; segment net income was $2.3 million in 2025, up from $1.1 million in 2024, with originations up $152.5 million or 28.9 percent.
• Consumer finance — Consumer lending through C&F Finance Company; segment net income was $1.2 million in 2025, down from $1.4 million in 2024, with net charge-offs of 2.59 percent and a provision for credit losses of $11.6 million.
• Other (standalone Corporation) — Includes holding-company-level items and trust preferred capital notes; recorded a net loss of $3.8 million in 2025, $2.9 million in 2024, and $2.5 million in 2023.

Recent performance

Second quarter 2026 consolidated net income was $8.6 million, or $2.63 per diluted share, up 11.1 percent from $7.8 million a year earlier. First six months 2026 net income was $15.4 million, or $4.71 per share, up 17.2 percent from $13.2 million. Results included a pre-tax gain of $8.3 million on the sale of the Bearing Insurance Group equity interest and a pre-tax loss of $7.1 million from a securities portfolio restructuring. Adjusted net income, which excludes those two items, was $7.9 million, or $2.40 per share, for the quarter and $14.7 million, or $4.48 per share, for the first half. Annualized ROA was 1.23 percent for the quarter and annualized ROE was 12.75 percent.

Strategy

Management tracks ROA, ROE and earnings growth, and monitors performance of the three segments while balancing interest rate risk, liquidity, capital requirements and asset quality. Capital is managed through growth, dividends and share repurchases. In the second quarter of 2025 the Corporation issued $40.0 million of new subordinated notes and repurchased $20.0 million of previously issued subordinated notes. In the third quarter of 2025 it opened a loan production office in Roanoke, expanding into Southwest Virginia. In the second quarter of 2026 it sold an equity interest in Bearing Insurance Group and completed a securities portfolio restructuring.

Risks

• Economic and regional conditions — The 10-K states that deterioration in economic conditions, including a prolonged slowdown in the Corporation's geographic region, could materially and adversely affect business, financial condition, liquidity and results.
• Inflation and funding costs — The 10-K notes prolonged inflation may pressure fixed costs and expenses, including funding costs and talent acquisition and retention, and may reduce demand for products and services.
• Credit losses in consumer finance — The consumer finance segment recorded a provision for credit losses of $11.6 million in each of 2025 and 2024, with net charge-offs of 2.59 percent in 2025.
• Interest rate and policy changes — The 10-K identifies changes in governmental monetary and fiscal policies, including trade policies and tariffs, and the level and volatility of interest rates as factors beyond the Corporation's control.

Outlook

Management stated it was pleased with second quarter results, citing strong loan growth in community banking, increased mortgage originations in mortgage banking, and margin expansion as contributors to solid adjusted earnings for the quarter and first half. The 10-K and 10-Q note that community banking revenues are not materially affected by seasonal factors, though municipal deposits tend to rise with tax collections in the fourth quarter and decline thereafter. No specific full-year earnings or revenue guidance was provided in the excerpts.