CFFI · C&F Financial Corporation

C&F Financial Corporation delivered solid Q1 2026 results with net income rising to $6.8 million from $5.4 million a year ago, reflecting 25% EPS growth to $2.08. CEO Tom Cherry highlighted strong momentum from community banking and mortgage segments outweighing consumer finance pressures. Community banking drove $7.1 million in income, up from $5.4 million, supported by $24.1 million sequential loan growth (6.1% annualized) and $53.7 million deposit increase (9.2% annualized), aided by higher net interest margin of 4.27% versus 4.16% last year. Average loans and deposits grew 9.2% and 8.2% year-over-year, though offset by higher salaries from Southwest Virginia expansion. Mortgage banking income climbed to $910,000 from $431,000 on 57.9% higher originations to $179.6 million ($142.5 million purchases, $37.1 million refinancings), plus elevated lender services fees to $820,000. Consumer finance swung to a $81,000 loss from $226,000 profit due to elevated 2.98% annualized charge-offs and provisions, despite portfolio yield improvements post marine/RV program exit; delinquencies improved to 3.35%. Provision for credit losses remained modest at $300,000 in community banking, with allowance at 1.09% of loans. Liquidity is robust, with liquid assets and borrowing capacity exceeding uninsured deposits by $531.9 million. The 4% dividend hike to $0.48 per share signals confidence, at 23.1% payout. Management views reserves as adequate amid economic risks like Middle East tensions.