TOANO, Va., Jan. 28, 2025 (GLOBE NEWSWIRE) -- C&F Financial Corporation (the Corporation) (NASDAQ:CFFI), the holding company for C&F Bank, today reported consolidated net income of $6.0 million for the fourth quarter of 2024, compared to $5.1 million for the fourth quarter of 2023. The Corporation reported consolidated net income of $19.9 million for the year ended December 31, 2024, compared to $23.7 million for the year ended December 31, 2023. The following table presents selected financial performance highlights for the periods indicated:


	For The Quarter Ended						For the Year Ended
Consolidated Financial Highlights (unaudited)	12/31/2024			12/31/2023			12/31/2024			12/31/2023
Consolidated net income (000's)	$	6,029		$	5,088		$	19,918		$	23,746

Earnings per share - basic and diluted	$	1.87		$	1.50		$	6.01		$	6.92

Annualized return on average equity		10.60	%		10.06	%		9.02	%		11.68	%
Annualized return on average tangible common equity¹		12.17	%		11.74	%		10.37	%		13.58	%
Annualized return on average assets		0.94	%		0.85	%		0.80	%		0.99	%

_________________

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.

"While the past year's financial performance reflected the challenges of a dynamic interest rate environment, our fourth quarter earnings were solid, and we are optimistic of earnings momentum heading into the coming year," commented Tom Cherry, President and Chief Executive Officer of C&F Financial Corporation. "Our net interest margin was down for 2024, however, it stabilized in the fourth quarter, and we are cautiously optimistic about margin performance in 2025. The community banking segment delivered solid loan and deposit growth across all markets. Despite facing headwinds from higher mortgage rates and a low inventory of homes for sale, the mortgage banking segment increased its loan production and net income over 2023. While higher charge-offs weighed on profitability at the consumer finance segment, we were able to achieve significant operational efficiencies during 2024. Despite obstacles and adversities that continually confront the banking industry in general, we believe C&F is well-positioned for the future."

Key highlights for the fourth quarter and the year ended December 31, 2024 are as follows.

Community banking segment loans grew $21.5 million, or 6.0 percent annualized, and $180.0 million, or 14.1 percent, compared to September 30, 2024 and December 31, 2023, respectively;
Consumer finance segment loans decreased $10.5 million, or 8.8 percent annualized, and $1.7 million, or less than one percent, compared to September 30, 2024 and December 31, 2023, respectively;
Deposits increased $35.0 million, or 6.6 percent annualized, and $104.7 million, or 5.1 percent, compared to September 30, 2024 and December 31, 2023, respectively;
Consolidated annualized net interest margin was 4.13 percent for the fourth quarter of 2024 compared to 4.17 percent for the fourth quarter of 2023 and 4.13 percent in the third quarter of 2024. Consolidated net interest margin was 4.12 percent for the year ended December 31, 2024 compared to 4.31 percent for the year ended December 31, 2023;
The community banking segment recorded no provision for credit losses for the fourth quarter of 2024 and $75,000 for the fourth quarter of 2023, and recorded provision for credit losses of $1.7 million and $1.6 million for the years ended December 31, 2024 and 2023, respectively;
The consumer finance segment recorded provision for credit losses of $3.5 million and $2.4 million for the fourth quarters of 2024 and 2023, respectively, and recorded provision for credit losses of $11.6 million and $6.7 million for the years ended December 31, 2024 and 2023, respectively;
The consumer finance segment experienced net charge-offs at an annualized rate of 3.40 percent of average total loans for the fourth quarter of 2024, compared to 2.72 percent for the fourth quarter of 2023. Net charge-offs as a percentage of average total loans were 2.62 percent for the year ended December 31, 2024, compared to 1.99 percent for the year ended December 31, 2023; and
Mortgage banking segment loan originations increased $32.2 million, or 32.8 percent, to $130.4 million for the fourth quarter of 2024 compared to the fourth quarter of 2023 and increased $29.0 million, or 5.8 percent, to $527.8 million for the year ended December 31, 2024 compared to the year ended December 31, 2023.

Community Banking Segment. The community banking segment reported net income of $6.4 million for the fourth quarter of 2024, compared to $5.2 million for the same period of 2023, due primarily to:

higher interest income resulting from higher average balances of loans and the effects of higher interest rates on asset yields, offset in part by lower average balances of securities;
higher other income from bank owned life insurance policies; and
lower salaries and employee benefits expense due primarily to a reduction in headcount through attrition;

partially offset by:

higher interest expense due primarily to higher rates on deposits and higher average balances of interest-bearing deposits, offset in part by lower average balances of borrowings.

The community banking segment reported net income of $20.3 million for the year ended December 31, 2024, compared to $22.9 million for the same period of 2023, due primarily to:

higher interest expense resulting from higher rates on deposits and higher average balances of interest-bearing deposits, partially offset by lower average balances of borrowings;
higher data processing and consulting costs related to investments in operational technology to improve resilience, efficiency and customer experience;
higher occupancy expense related to branch network improvements, including the relocation of a branch and the opening of a new branch; and
higher salaries and employee benefits expense, which have generally increased in line with market conditions, offset in part by a reduction in headcount through attrition;

partially offset by:

higher interest income resulting from higher average balances of loans and the effects of higher interest rates on asset yields, offset in part by lower average balances of securities;
higher wealth management services income due primarily to higher assets under management;
higher other income from bank owned life insurance policies; and
higher investment income from other equity investments.

Average loans increased $180.8 million, or 14.4 percent, for the fourth quarter of 2024 and increased $164.0 million, or 13.5 percent, for the year ended December 31, 2024, compared to the same periods in 2023, due primarily to growth in the construction, commercial real estate, and residential mortgage segments of the loan portfolio. Average deposits increased $140.2 million, or 6.9 percent, for the fourth quarter of 2024 and increased $110.8 million, or 5.5 percent, for the year ended December 31, 2024, compared to the same periods in 2023, due primarily to higher balance of time deposits, partially offset by decreases in savings and interest-bearing demand deposits and noninterest-bearing demand deposits amid increased competition for deposits and the higher interest rate environment.

Average loan yields and average costs of interest-bearing deposits were higher for the fourth quarter and the year ended December 31, 2024, compared to the same periods of 2023, due primarily to the effects of the higher interest rate environment.

The community banking segment's nonaccrual loans were $333,000 at December 31, 2024 compared to $406,000 at December 31, 2023. The community banking segment recorded no provision for credit losses for the fourth quarter of 2024 and $1.7 million for the year ended December 31, 2024 compared to $75,000 and $1.6 million for the same periods of 2023. At December 31, 2024, the allowance for credit losses increased to $17.4 million, compared to $16.1 million at December 31, 2023. The allowance for credit losses as a percentage of total loans decreased to 1.20 percent at December 31, 2024 from 1.26 percent at December 31, 2023. The increases in provision and allowance for credit losses are due primarily to growth in the loan portfolio. Management believes that the level of the allowance for credit losses is adequate to reflect the net amount expected to be collected.

Mortgage Banking Segment. The mortgage banking segment reported net income of $87,000 and $1.1 million for the fourth quarter and year ended December 31, 2024, respectively, compared to a net loss of $103,000 and net income of $465,000 for the same periods of 2023, due primarily to:

higher gains on sales of loans and higher mortgage banking fee income due to higher volume of mortgage loan originations; and
lower occupancy expenses due to an effort to reduce overhead costs;

partially offset by:

higher variable expenses tied to mortgage loan origination volume such as commissions and bonuses, reported in salaries and employee benefits; and
lower reversal of provision for indemnifications.

The sustained elevated level of mortgage interest rates, combined with higher home prices and lower levels of inventory, led to a level of mortgage loan originations in 2024 and 2023 for the industry that is lower than recent historical averages. Mortgage loan originations for the mortgage banking segment were $130.4 million for the fourth quarter of 2024, comprised of $15.9 million refinancings and $114.5 million home purchases, compared to $98.2 million, comprised of $12.5 million refinancings and $85.7 million home purchases, for the same period in 2023. Mortgage loan originations for the mortgage banking segment were $527.8 million for the year ended December 31, 2024, comprised of $50.2 million refinancings and $477.6 million home purchases, compared to $498.8 million, comprised of $52.7 million refinancings and $446.1 million home purchases, for the same period in 2023. Mortgage loan originations in the fourth quarter of 2024 decreased $26.6 million compared to the third quarter of 2024 due in part to normal industry seasonal fluctuations. Mortgage loan segment originations include originations of loans sold to the community banking segment, at prices similar to those paid by third-party investors. These transactions are eliminated to reach consolidated totals.

During the fourth quarter and year ended December 31, 2024, the mortgage banking segment recorded a reversal of provision for indemnification losses of $85,000 and $460,000, respectively, compared to a reversal of provision for indemnification losses of $150,000 and $585,000 in the same periods of 2023. The mortgage banking segment increased reserves for indemnification losses during 2020 based on widespread forbearance on mortgage loans and economic uncertainty related to the COVID-19 pandemic. The release of indemnification reserves in 2024 and 2023 was due primarily to improvement in the mortgage banking segment's assessment of borrower payment performance, lower volume of mortgage loan originations in recent years and other factors affecting expected losses on mortgage loans sold in the secondary market, such as time since origination. Management believes that the indemnification reserve is sufficient to absorb losses related to loans that have been sold in the secondary market.

Consumer Finance Segment. The consumer finance segment reported net income of $272,000 and $1.4 million for the fourth quarter and year ended December 31, 2024, respectively, compared to net income of $618,000 and $2.9 million for the same periods in 2023. The decreases in consumer finance segment net income were due primarily to:

higher provision for credit losses due primarily to increased net charge-offs; and
higher interest expense on variable rate borrowings from the community banking segment as a result of higher interest rates and higher average balances of borrowings;

partially offset by:

higher interest income resulting from the effects of higher interest rates on loan yields and higher average balances of loans;
lower salaries and employee benefits expense due to an effort to reduce overhead costs; and
lower loan processing and collection expenses due primarily to efficiency initiatives within the collections department.

Average loans increased $2.5 million, or one percent, for the fourth quarter of 2024 and increased $2.9 million, or one percent, for the year ended December 31, 2024, compared to the same periods in 2023. The consumer finance segment experienced net charge-offs at a rate of 2.62 percent of average total loans for the year ended December 31, 2024, compared to 1.99 percent for the year ended December 31, 2023, due primarily to an increase in the number of delinquent loans, the number of repossessions, and the average amount charged-off when a loan was uncollectable. Higher amounts charged-off per loan resulted in part from larger loan amounts, generally purchased in 2020 and 2021 when automobile values were higher, being charged-off in the current year, with the wholesale values of automobiles having declined since then. At December 31, 2024, total delinquent loans as a percentage of total loans was 3.90 percent, compared to 4.09 percent at December 31, 2023, and 3.49 percent at September 30, 2024.

The consumer finance segment, at times, offers payment deferrals as a portfolio management technique to achieve higher ultimate cash collections on select loan accounts. A significant reliance on deferrals as a means of managing collections may result in a lengthening of the loss confirmation period, which would increase expectations of credit losses inherent in the portfolio. Average amounts of payment deferrals of automobile loans on a monthly basis, which are not included in delinquent loans, were 2.11 percent and 1.80 percent of average automobile loans outstanding during the fourth quarter and year ended December 31, 2024, respectively, compared to 2.02 percent and 1.87 percent during the same periods during 2023. The allowance for credit losses was $22.7 million at December 31, 2024 and $23.6 million at December 31, 2023. The allowance for credit losses as a percentage of total loans decreased to 4.86 percent at December 31, 2024 from 5.03 percent at December 31, 2023, primarily as a result of growth in loans with stronger credit quality while balances of loans with lower credit quality declined. Management believes that the level of the allowance for credit losses is adequate to reflect the net amount expected to be collected. If loan performance deteriorates resulting in further elevated delinquencies or net charge-offs, the provision for credit losses may increase in future periods.

Liquidity. The objective of the Corporation's liquidity management is to ensure the continuous availability of funds to satisfy the credit needs of our customers and the demands of our depositors, creditors and investors. Uninsured deposits represent an estimate of amounts above the Federal Deposit Insurance Corporation (FDIC) insurance coverage limit of $250,000. As of December 31, 2024, the Corporation's uninsured deposits were approximately $640.2 million, or 29.5 percent of total deposits. Excluding intercompany cash holdings and municipal deposits, which are secured with pledged securities, amounts uninsured were approximately $455.2 million, or 21.0 percent of total deposits as of December 31, 2024. The Corporation's liquid assets, which include cash and due from banks, interest-bearing deposits at other banks and nonpledged securities available for sale, were $288.1 million and borrowing availability was $606.2 million as of December 31, 2024, which in total exceed uninsured deposits, excluding intercompany cash holdings and secured municipal deposits, by $439.1 million as of December 31, 2024.

In addition to deposits, the Corporation utilizes short-term and long-term borrowings as sources of funds. Short-term borrowings from the Federal Reserve Bank and the Federal Home loan Bank of Atlanta (FHLB) may be used to fund the Corporation's day-to-day operations. Short-term borrowings also include securities sold under agreements to repurchase. Total borrowings increased to $122.6 million at December 31, 2024 from $109.5 million at December 31, 2023 due primarily to higher long-term borrowings from the FHLB used in part to fund loan growth.

Additional sources of liquidity available to the Corporation include cash flows from operations, loan payments and payoffs, deposit growth, maturities, calls and sales of securities and the issuance of brokered certificates of deposit.

Capital and Dividends. The Corporation declared cash dividends during the year ended December 31, 2024 totaling $1.76 per share, including a quarterly cash dividend of 44 cents per share during the fourth quarter of 2024, which was paid on January 1, 2025. These dividends represent a payout ratio of 23.5 percent of earnings per share for the fourth quarter of 2024 and 29.3 percent of earnings per share for the year ended December 31, 2024. The Board of Directors of the Corporation continually reviews the amount of cash dividends per share and the resulting dividend payout ratio in light of changes in economic conditions, current and future capital requirements, and expected future earnings.

Total consolidated equity increased $9.5 million at December 31, 2024, compared to December 31, 2023, due primarily to net income and lower unrealized losses in the market value of securities available for sale, which are recognized as a component of other comprehensive income, partially offset by share repurchases and dividends paid on the Corporation's common stock. The Corporation's securities available for sale are fixed income debt securities and their unrealized loss position is a result of rising market interest rates since they were purchased. The Corporation expects to recover its investments in debt securities through scheduled payments of principal and interest. Unrealized losses are not expected to affect the earnings or regulatory capital of the Corporation or C&F Bank. The accumulated other comprehensive loss related to the Corporation's securities available for sale, net of deferred income taxes, decreased to $23.7 million at December 31, 2024 compared to $25.0 million at December 31, 2023 due primarily to fluctuations in debt security market interest rates and a decrease in the balance of securities available for sale.

As of December 31, 2024, the most recent notification from the FDIC categorized the C&F Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized under regulations applicable at December 31, 2024, C&F Bank was required to maintain minimum total risk-based, Tier 1 risk-based, CET1 risk-based and Tier 1 leverage ratios. In addition to the regulatory risk-based capital requirements, C&F Bank must maintain a capital conservation buffer of additional capital of 2.5 percent of risk-weighted assets as required by the Basel III capital rules. The Corporation and C&F Bank exceeded these ratios at December 31, 2024. For additional information, see "Capital Ratios" below. The above mentioned ratios are not impacted by unrealized losses on securities available for sale. In the event that all of these unrealized losses became realized into earnings, the Corporation and C&F Bank would both continue to exceed minimum capital requirements, including the capital conservation buffer, and be considered well capitalized.

In December 2023, the Board of Directors authorized a program, effective January 1, 2024 through December 31, 2024, to repurchase up to $10.0 million of the Corporation's common stock (the 2024 Repurchase Program). During the fourth quarter and year ended December 31, 2024, the Corporation repurchased 11,100 shares, or $679,000, and 160,694 shares, or $7.9 million, of its common stock under the 2024 Repurchase Program, respectively. In December 2024, the Board of Directors authorized a new program, effective January 1, 2025 through December 31, 2025, to repurchase up to $5.0 million of the Corporation's common stock through December 31, 2025 (the 2025 Repurchase Program).

About C&F Financial Corporation. The Corporation's common stock is listed for trading on The Nasdaq Stock Market under the symbol CFFI. The common stock closed at a price of $75.40 per share on January 27, 2025. At December 31, 2024, the book value per share of the Corporation was $70.00 and the tangible book value per share was $61.86. For more information about the Corporation's tangible book value per share, which is not calculated in accordance with GAAP, please see "Use of Certain Non-GAAP Financial Measures" and "Reconciliation of Certain Non-GAAP Financial Measures," below.

C&F Bank operates 31 banking offices and four commercial loan offices located throughout eastern and central Virginia and offers full wealth management services through its subsidiary C&F Wealth Management, Inc. C&F Mortgage Corporation and its subsidiary C&F Select LLC provide mortgage loan origination services through offices located in Virginia and the surrounding states. C&F Finance Company provides automobile, marine and recreational vehicle loans through indirect lending programs offered primarily in the Northeastern, Midwestern and Southern United States from its headquarters in Henrico, Virginia.

Additional information regarding the Corporation's products and services, as well as access to its filings with the Securities and Exchange Commission (SEC), are available on the Corporation's website at http://www.cffc.com.

Use of Certain Non-GAAP Financial Measures. The accounting and reporting policies of the Corporation conform to GAAP in the United States and prevailing practices in the banking industry. However, certain non-GAAP measures are used by management to supplement the evaluation of the Corporation's performance. These include adjusted net income, adjusted earnings per share, adjusted return on average equity, adjusted return on average assets, return on average tangible common equity (ROTCE), adjusted ROTCE, tangible book value per share, price to tangible book value ratio, and the following fully-taxable equivalent (FTE) measures: interest income on loans-FTE, interest income on securities-FTE, total interest income-FTE and net interest income-FTE.

Management believes that the use of these non-GAAP measures provides meaningful information about operating performance by enhancing comparability with other financial periods, other financial institutions, and between different sources of interest income. The non-GAAP measures used by management enhance comparability by excluding the effects of balances of intangible assets, including goodwill, that vary significantly between institutions, and tax benefits that are not consistent across different opportunities for investment. These non-GAAP financial measures should not be considered an alternative to GAAP-basis financial statements, and other bank holding companies may define or calculate these or similar measures differently. A reconciliation of the non-GAAP financial measures used by the Corporation to evaluate and measure the Corporation's performance to the most directly comparable GAAP financial measures is presented below.

Forward-Looking Statements. This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on the beliefs of the Corporation's management, as well as assumptions made by, and information currently available to, the Corporation's management, and reflect management's current views with respect to certain events that could have an impact on the Corporation's future financial performance. These statements, including without limitation statements made in Mr. Cherry's quote and statements regarding future interest rates and conditions in the Corporation's industries and markets, relate to expectations concerning matters that are not historical fact, may express "belief," "intention," "expectation," "potential" and similar expressions, and may use the words "believe," "expect," "anticipate," "estimate," "plan," "may," "might," "will," "intend," "target," "should," "could," or similar expressions. These statements are inherently uncertain, and there can be no assurance that the underlying assumptions will prove to be accurate. Actual results could differ materially from those anticipated or implied by such statements. Forward-looking statements in this release may include, without limitation, statements regarding expected future operations and financial performance, expected trends in yields on loans, expected future recovery of investments in debt securities, future dividend payments, deposit trends, charge-offs and delinquencies, changes in cost of funds and net interest margin and items affecting net interest margin, strategic business initiatives and the anticipated effects thereof, changes in interest rates and the effects thereof on net interest income, mortgage loan originations, expectations regarding C&F Bank's regulatory risk-based capital requirement levels, technology initiatives, our diversified business strategy, asset quality, credit quality, adequacy of allowances for credit losses and the level of future charge-offs, market interest rates and housing inventory and resulting effects in mortgage loan origination volume, sources of liquidity, adequacy of the reserve for indemnification losses related to loans sold in the secondary market, the effect of future market and industry trends, the effects of future interest rate fluctuations, cybersecurity risks, and inflation. Factors that could have a material adverse effect on the operations and future prospects of the Corporation include, but are not limited to, changes in:

interest rates, such as volatility in short-term interest rates or yields on U.S. Treasury bonds, increases in interest rates following actions by the Federal Reserve and increases or volatility in mortgage interest rates
general business conditions, as well as conditions within the financial markets
general economic conditions, including unemployment levels, inflation rates, supply chain disruptions and slowdowns in economic growth
general market conditions, including disruptions due to pandemics or significant health hazards, severe weather conditions, natural disasters, terrorist activities, financial crises, political crises, war and other military conflicts (including the ongoing military conflicts between Russia and Ukraine and in the Middle East) or other major events, or the prospect of these events
average loan yields and average costs of interest-bearing deposits
financial services industry conditions, including bank failures or concerns involving liquidity
labor market conditions, including attracting, hiring, training, motivating and retaining qualified employees
the legislative/regulatory climate, regulatory initiatives with respect to financial institutions, products and services, the Consumer Financial Protection Bureau (the CFPB) and the regulatory and enforcement activities of the CFPB
monetary and fiscal policies of the U.S. Government, including policies of the FDIC, U.S. Department of the Treasury and the Board of Governors of the Federal Reserve System, and the effect of these policies on interest rates and business in our markets
demand for financial services in the Corporation's market area
the value of securities held in the Corporation's investment portfolios
the quality or composition of the loan portfolios and the value of the collateral securing those loans
the inventory level, demand and fluctuations in the pricing of used automobiles, including sales prices of repossessed vehicles
the level of automobile loan delinquencies or defaults and our ability to repossess automobiles securing delinquent automobile finance installment contracts
the level of net charge-offs on loans and the adequacy of our allowance for credit losses
the level of indemnification losses related to mortgage loans sold
demand for loan products
deposit flows
the strength of the Corporation's counterparties
the availability of lines of credit from the FHLB and other counterparties
the soundness of other financial institutions and any indirect exposure related to the closing of other financial institutions and their impact on the broader market through other customers, suppliers and partners, or that the conditions which resulted in the liquidity concerns experienced by closed financial institutions may also adversely impact, directly or indirectly, other financial institutions and market participants with which the Corporation has commercial or deposit relationships
competition from both banks and non-banks, including competition in the non-prime automobile finance markets and marine and recreational vehicle finance markets
services provided by, or the level of the Corporation's reliance upon third parties for key services
the commercial and residential real estate markets, including changes in property values
the demand for residential mortgages and conditions in the secondary residential mortgage loan markets
the Corporation's technology initiatives and other strategic initiatives
the Corporation's branch expansions and consolidations plans
cyber threats, attacks or events
C&F Bank's product offerings
accounting principles, policies and guidelines, and elections by the Corporation thereunder

These risks and uncertainties should be considered in evaluating the forward-looking statements contained herein, and readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date of this release. For additional information on risk factors that could affect the forward-looking statements contained herein, see the Corporation's Annual Report on Form 10-K for the year ended December 31, 2023 and other reports filed with the SEC. The Corporation undertakes no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.


C&F Financial Corporation Selected Financial Information (dollars in thousands, except for per share data) (unaudited)

Financial Condition	12/31/2024		12/31/2023
Interest-bearing deposits in other banks	$	49,423	$	58,777
Investment securities - available for sale, at fair value		418,625		462,444
Loans held for sale, at fair value		20,112		14,176
Loans, net:
Community Banking segment		1,436,226		1,257,557
Consumer Finance segment		444,085		444,931
Total assets		2,563,385		2,438,498
Deposits		2,170,860		2,066,130
Repurchase agreements		28,994		30,705
Other borrowings		93,615		78,834
Total equity		226,970		217,516


	For The				For The
	Quarter Ended				Year Ended
Results of Operations	12/31/2024		12/31/2023		12/31/2024		12/31/2023
Interest income	$	36,443	$	32,408	$	139,594	$	124,137
Interest expense		11,343		8,466		42,819		26,430
Provision for credit losses:
Community Banking segment		-		75		1,650		1,625
Consumer Finance segment		3,500		2,400		11,600		6,650
Noninterest income:
Gains on sales of loans		1,250		850		6,064		5,780
Other		5,700		6,953		24,474		23,835
Noninterest expenses:
Salaries and employee benefits		11,953		14,035		53,578		54,876
Other		9,363		9,038		36,352		35,007
Income tax expense		1,205		1,109		4,215		5,418
Net income		6,029		5,088		19,918		23,746

Fully-taxable equivalent (FTE) amounts¹
Interest income on loans-FTE		33,122		29,147		127,288		111,146
Interest income on securities-FTE		3,046		3,121		12,079		12,710
Total interest income-FTE		36,731		32,677		140,741		125,101
Net interest income-FTE		25,388		24,211		97,922		98,671

_________________

¹For 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."


	For the Quarter Ended
	12/31/2024							12/31/2023
	Average			Income/		Yield/		Average			Income/		Yield/
Yield Analysis	Balance			Expense		Rate		Balance			Expense		Rate
Assets
Securities:
Taxable	$	321,796		$	1,898	2.36	%	$	392,368		$	2,093	2.13	%
Tax-exempt		120,119			1,148	3.82			118,263			1,028	3.48
Total securities		441,915			3,046	2.76			510,631			3,121	2.44
Loans:
Community banking segment		1,438,195			20,036	5.54			1,257,418			16,813	5.30
Mortgage banking segment		30,674			486	6.30			22,288			383	6.82
Consumer finance segment		473,816			12,600	10.58			471,355			11,951	10.06
Total loans		1,942,685			33,122	6.78			1,751,061			29,147	6.60
Interest-bearing deposits in other banks		58,212			563	3.85			42,114			409	3.85
Total earning assets		2,442,812			36,731	5.98			2,303,806			32,677	5.63
Allowance for credit losses		(40,930	)						(40,614	)
Total non-earning assets		159,082							142,252
Total assets	$	2,560,964						$	2,405,444

Liabilities and Equity
Interest-bearing deposits:
Interest-bearing demand deposits	$	331,156			601	0.72		$	341,243			556	0.65
Money market deposit accounts		299,321			1,136	1.51			299,712			896	1.19
Savings accounts		176,106			26	0.06			194,476			33	0.07
Certificates of deposit		811,224			8,325	4.08			635,702			5,665	3.54
Total interest-bearing deposits		1,617,807			10,088	2.48			1,471,133			7,150	1.93
Borrowings:
Repurchase agreements		30,673			131	1.71			33,418			126	1.51
Other borrowings		93,765			1,124	4.79			98,875			1,190	4.81
Total borrowings		124,438			1,255	4.03			132,293			1,316	3.98
Total interest-bearing liabilities		1,742,245			11,343	2.59			1,603,426			8,466	2.10
Noninterest-bearing demand deposits		547,890							554,321
Other liabilities		43,379							45,462
Total liabilities		2,333,514							2,203,209
Equity		227,450							202,235
Total liabilities and equity	$	2,560,964						$	2,405,444
Net interest income				$	25,388						$	24,211
Interest rate spread						3.39	%						3.53	%
Interest expense to average earning assets						1.85	%						1.46	%
Net interest margin						4.13	%						4.17	%


	For the Year Ended
	12/31/2024							12/31/2023
	Average			Income/		Yield/		Average			Income/		Yield/
Yield Analysis	Balance			Expense		Rate		Balance			Expense		Rate
Assets
Securities:
Taxable	$	335,647		$	7,563	2.25	%	$	428,895		$	9,110	2.12	%
Tax-exempt		119,978			4,516	3.76			108,006			3,600	3.33
Total securities		455,625			12,079	2.65			536,901			12,710	2.37
Loans:
Community banking segment		1,378,131			75,707	5.49			1,214,143			62,188	5.12
Mortgage banking segment		30,737			1,897	6.17			25,598			1,695	6.62
Consumer finance segment		476,775			49,684	10.42			473,885			47,263	9.97
Total loans		1,885,643			127,288	6.75			1,713,626			111,146	6.49
Interest-bearing deposits in other banks		37,238			1,374	3.69			35,351			1,245	3.52
Total earning assets		2,378,506			140,741	5.92			2,285,878			125,101	5.47
Allowance for loan losses		(40,736	)						(41,047	)
Total non-earning assets		156,726							148,666
Total assets	$	2,494,496						$	2,393,497

Liabilities and Equity
Interest-bearing deposits:
Interest-bearing demand deposits	$	327,700			2,170	0.66		$	354,643			2,134	0.60
Money market deposit accounts		296,278			4,313	1.46			317,601			3,017	0.95
Savings accounts		180,429			111	0.06			209,033			124	0.06
Certificates of deposit		767,721			31,465	4.10			541,252			15,112	2.79
Total interest-bearing deposits		1,572,128			38,059	2.42			1,422,529			20,387	1.43
Borrowings:
Repurchase agreements		27,754			456	1.64			32,393			399	1.23
Other borrowings		91,713			4,304	4.69			116,908			5,644	4.83
Total borrowings		119,467			4,760	3.98			149,301			6,043	4.05
Total interest-bearing liabilities		1,691,595			42,819	2.53			1,571,830			26,430	1.68
Noninterest-bearing demand deposits		536,828							575,452
Other liabilities		45,217							42,954
Total liabilities		2,273,640							2,190,236
Equity		220,856							203,261
Total liabilities and equity	$	2,494,496						$	2,393,497
Net interest income				$	97,922						$	98,671
Interest rate spread						3.39	%						3.79	%
Interest expense to average earning assets						1.80	%						1.16	%
Net interest margin						4.12	%						4.31	%


	12/31/2024
Funding Sources	Capacity		Outstanding		Available
Unsecured federal funds agreements	$	75,000	$	—	$	75,000
Borrowings from FHLB		257,734		40,000		217,734
Borrowings from Federal Reserve Bank		313,499		—		313,499
Total	$	646,233	$	40,000	$	606,233


Asset Quality	12/31/2024			12/31/2023
Community Banking
Total loans	$	1,453,605		$	1,273,629
Nonaccrual loans	$	333		$	406

Allowance for credit losses (ACL)	$	17,379		$	16,072
Nonaccrual loans to total loans		0.02	%		0.03	%
ACL to total loans		1.20	%		1.26	%
ACL to nonaccrual loans		5,218.92	%		3,958.62	%
Year-to-date net charge-offs to average loans		0.01	%		0.01	%

Consumer Finance
Total loans	$	466,793		$	468,510
Nonaccrual loans	$	614		$	892
Repossessed assets	$	779		$	646
ACL	$	22,708		$	23,579
Nonaccrual loans to total loans		0.13	%		0.19	%
ACL to total loans		4.86	%		5.03	%
ACL to nonaccrual loans		3,698.37	%		2,643.39	%
Year-to-date net charge-offs to average loans		2.62	%		1.99	%


	For The						For The
	Quarter Ended						Year Ended
Other Performance Data	12/31/2024			12/31/2023			12/31/2024			12/31/2023
Net Income (Loss):
Community Banking	$	6,364		$	5,186		$	20,284		$	22,928
Mortgage Banking		87			(103	)		1,108			465
Consumer Finance		272			618			1,414			2,879
Other¹		(694	)		(613	)		(2,888	)		(2,526	)
Total	$	6,029		$	5,088		$	19,918		$	23,746

Net income attributable to C&F Financial Corporation	$	6,037		$	5,068		$	19,834		$	23,604

Earnings per share - basic and diluted	$	1.87		$	1.50		$	6.01		$	6.92
Weighted average shares outstanding - basic and diluted		3,226,999			3,367,931			3,299,574			3,411,995

Annualized return on average assets		0.94	%		0.85	%		0.80	%		0.99	%
Annualized return on average equity		10.60	%		10.06	%		9.02	%		11.68	%
Annualized return on average tangible common equity²		12.17	%		11.74	%		10.37	%		13.58	%
Dividends declared per share	$	0.44		$	0.44		$	1.76		$	1.76

Mortgage loan originations - Mortgage Banking	$	130,426		$	98,238		$	527,750		$	498,797
Mortgage loans sold - Mortgage Banking		154,552			109,387			522,001			498,852

_________________

¹ Includes results of the holding company that are not allocated to the business segments and elimination of inter-segment activity.

² 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."


Market Ratios	12/31/2024		12/31/2023
Market value per share	$	71.25	$	68.19
Book value per share	$	70.00	$	64.28
Price to book value ratio		1.02		1.06
Tangible book value per share¹	$	61.86	$	56.40
Price to tangible book value ratio¹		1.15		1.21
Price to earnings ratio (ttm)		11.86		9.87

_________________

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."



			Minimum Capital
Capital Ratios	12/31/2024	12/31/2023	Requirements³
C&F Financial Corporation¹
Total risk-based capital ratio	14.1%	14.8%	8.0%
Tier 1 risk-based capital ratio	11.9%	12.6%	6.0%
Common equity tier 1 capital ratio	10.7%	11.3%	4.5%
Tier 1 leverage ratio	9.8%	10.1%	4.0%

C&F Bank²
Total risk-based capital ratio	13.6%	14.1%	8.0%
Tier 1 risk-based capital ratio	12.3%	12.9%	6.0%
Common equity tier 1 capital ratio	12.3%	12.9%	4.5%
Tier 1 leverage ratio	10.1%	10.3%	4.0%

_________________

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.

² All ratios at December 31, 2024 are estimates and subject to change pending regulatory filings. All ratios at December 31, 2023 are presented as filed.

³ The ratios presented for minimum capital requirements are those to be considered adequately capitalized.


	For The Quarter Ended						For The Year Ended
	12/31/2024			12/31/2023			12/31/2024			12/31/2023
Reconciliation of Certain Non-GAAP Financial Measures
Return on Average Tangible Common Equity
Average total equity, as reported	$	227,450		$	202,235		$	220,856		$	203,261
Average goodwill		(25,191	)		(25,191	)		(25,191	)		(25,191	)
Average other intangible assets		(1,183	)		(1,439	)		(1,273	)		(1,538	)
Average noncontrolling interest		(518	)		(515	)		(649	)		(675	)
Average tangible common equity	$	200,558		$	175,090		$	193,743		$	175,857

Net income	$	6,029		$	5,088		$	19,918		$	23,746
Amortization of intangibles		64			69			260			273
Net loss (income) attributable to noncontrolling interest		8			(20	)		(84	)		(142	)
Net tangible income attributable to C&F Financial Corporation	$	6,101		$	5,137		$	20,094		$	23,877

Annualized return on average equity, as reported		10.60	%		10.06	%		12.02	%		15.58	%
Annualized return on average tangible common equity		12.17	%		11.74	%		10.37	%		13.58	%


	For The Quarter Ended				For The Year Ended
	12/31/2024		12/31/2023		12/31/2024		12/31/2023
Fully Taxable Equivalent Net Interest Income¹
Interest income on loans	$	33,075	$	29,093	$	127,089	$	110,938
FTE adjustment		47		54		199		208
FTE interest income on loans	$	33,122	$	29,147	$	127,288	$	111,146

Interest income on securities	$	2,805	$	2,906	$	11,131	$	11,954
FTE adjustment		241		215		948		756
FTE interest income on securities	$	3,046	$	3,121	$	12,079	$	12,710

Total interest income	$	36,443	$	32,408	$	139,594	$	124,137
FTE adjustment		288		269		1,147		964
FTE interest income	$	36,731	$	32,677	$	140,741	$	125,101

Net interest income	$	25,100	$	23,942	$	96,775	$	97,707
FTE adjustment		288		269		1,147		964
FTE net interest income	$	25,388	$	24,211	$	97,922	$	98,671

_________________

¹ Assuming a tax rate of 21%.


	December 31,			December 31,
*(Dollars in thousands except for per share data)*	2024			2023
Tangible Book Value Per Share
Equity attributable to C&F Financial Corporation	$	226,360		$	216,878
Goodwill		(25,191	)		(25,191	)
Other intangible assets		(1,147	)		(1,407	)
Tangible equity attributable to C&F Financial Corporation	$	200,022		$	190,280

Shares outstanding		3,233,672			3,374,098

Book value per share	$	70.00		$	64.28
Tangible book value per share	$	61.86		$	56.40

Contact:	Jason Long, CFO and Secretary
	(804) 843-2360

C&F Financial Corporation Announces Net Income for 2024