CFFI · C&F Financial Corporation

C&F Financial Corporation completed the sale of its membership interest in Bearing Insurance Group, LLC to an unaffiliated third party, effective May 1, 2026, generating an estimated pre-tax gain of $8.3 million to be recorded in second quarter 2026 results. This gain is expected to boost tangible book value per share by $1.90 after taxes, with no impact on total consolidated equity. Immediately following, the company restructured 14.7% of its AFS securities portfolio by selling $72.6 million in low-yield (1.40% weighted average) securities and reinvesting $67.8 million into higher-yield (4.70%) securities, incurring an estimated pre-tax loss of $7.1 million, also in Q2 2026. The loss is projected to recover over 3.3 years through enhanced income. Management anticipates annualized benefits of $0.51 per share in EPS improvement and 9 basis points in net interest margin expansion, positioning the portfolio for higher returns amid current rate environment. President and CEO Tom Cherry noted the proactive repositioning leverages the Bearing sale to drive meaningful earnings and margin enhancement. Disclosures under Item 7.01 include forward-looking statements with risks such as post-closing adjustments and economic factors potentially altering impacts.