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C&F Financial Corporation Announces Net Income for 2024

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C&F Financial (NASDAQ: CFFI) reported consolidated net income of $6.0 million for Q4 2024, up from $5.1 million in Q4 2023. However, annual net income decreased to $19.9 million in 2024 from $23.7 million in 2023.

Key highlights include: Community banking segment loans grew 14.1% year-over-year; deposits increased 5.1%; consolidated net interest margin was 4.13% in Q4 2024 versus 4.17% in Q4 2023. The mortgage banking segment increased loan originations by 32.8% to $130.4 million in Q4 2024, while the consumer finance segment faced challenges with higher charge-offs at 2.62% of average total loans in 2024 compared to 1.99% in 2023.

The company maintained strong liquidity with $288.1 million in liquid assets and $606.2 million in borrowing availability. Total consolidated equity increased, and the bank remains well-capitalized under regulatory requirements.

C&F Financial (NASDAQ: CFFI) ha riportato un reddito netto consolidato di 6,0 milioni di dollari per il quarto trimestre del 2024, in aumento rispetto ai 5,1 milioni di dollari nel quarto trimestre del 2023. Tuttavia, il reddito netto annuo è diminuito a 19,9 milioni di dollari nel 2024 dai 23,7 milioni di dollari nel 2023.

I punti salienti includono: i prestiti del segmento di banking comunitario sono cresciuti del 14,1% anno su anno; i depositi sono aumentati del 5,1%; il margine di interesse netto consolidato era del 4,13% nel quarto trimestre del 2024 rispetto al 4,17% nel quarto trimestre del 2023. Il segmento di mortgage banking ha aumentato le originazioni di prestiti del 32,8%, raggiungendo i 130,4 milioni di dollari nel quarto trimestre del 2024, mentre il segmento di finanziamenti al consumo ha affrontato sfide con un aumento dei charge-off a 2,62% dei prestiti totali medi nel 2024, rispetto all'1,99% del 2023.

L'azienda ha mantenuto una buona liquidità con 288,1 milioni di dollari in attività liquide e 606,2 milioni di dollari di disponibilità a prestito. Il patrimonio netto consolidato è aumentato e la banca rimane ben capitalizzata secondo i requisiti normativi.

C&F Financial (NASDAQ: CFFI) reportó un ingreso neto consolidado de 6,0 millones de dólares para el cuarto trimestre de 2024, un aumento desde los 5,1 millones de dólares en el cuarto trimestre de 2023. Sin embargo, el ingreso neto anual disminuyó a 19,9 millones de dólares en 2024 desde 23,7 millones de dólares en 2023.

Los aspectos destacados incluyen: los préstamos del segmento de banca comunitaria crecieron un 14,1% año tras año; los depósitos aumentaron un 5,1%; el margen de interés neto consolidado fue del 4,13% en el cuarto trimestre de 2024 frente al 4,17% en el cuarto trimestre de 2023. El segmento de banca hipotecaria incrementó las originaciones de préstamos en un 32,8% a 130,4 millones de dólares en el cuarto trimestre de 2024, mientras que el segmento de financiamiento al consumo enfrentó desafíos con mayores cancelaciones del 2,62% de los préstamos totales promedio en 2024 en comparación con el 1,99% en 2023.

La empresa mantuvo una sólida liquidez con 288,1 millones de dólares en activos líquidos y 606,2 millones de dólares en disponibilidad de préstamos. El patrimonio neto consolidado aumentó, y el banco sigue estando bien capitalizado bajo los requisitos regulatorios.

C&F Financial (NASDAQ: CFFI)는 2024년 4분기 통합 순이익이 600만 달러로 보고되었으며, 이는 2023년 4분기 510만 달러에서 증가한 수치입니다. 그러나 연간 순이익은 2024년에 1990만 달러로 감소했으며, 2023년에는 2370만 달러였습니다.

주요 하이라이트로는: 커뮤니티 뱅킹 부문에서 대출이 전년 대비 14.1% 증가했으며; 예금은 5.1% 증가했습니다; 2024년 4분기 통합 순이자 마진은 4.13%로 2023년 4분기의 4.17%에 비해 소폭 감소했습니다. 모기지 뱅킹 부문은 2024년 4분기에 3억 1304만 달러로 대출 승인 건수가 32.8% 증가했지만, 소비자 금융 부문은 2024년 평균 총 대출의 2.62%에 해당하는 높은 대손상각률로 어려움을 겪었습니다. 이 비율은 2023년의 1.99%와 비교됩니다.

회사는 2억 8810만 달러의 유동 자산과 6억 620만 달러의 대출 가능액으로 강력한 유동성을 유지하고 있습니다. 총 통합 자본은 증가하였으며, 은행은 규제 요구 사항에 따라 자본이 우수한 상태를 유지하고 있습니다.

C&F Financial (NASDAQ: CFFI) a déclaré un revenu net consolidé de 6,0 millions de dollars pour le quatrième trimestre de 2024, en hausse par rapport à 5,1 millions de dollars au quatrième trimestre de 2023. Cependant, le revenu net annuel a diminué à 19,9 millions de dollars en 2024, contre 23,7 millions de dollars en 2023.

Les faits saillants comprennent : les prêts du segment de la banque communautaire ont augmenté de 14,1 % d'une année sur l'autre ; les dépôts ont augmenté de 5,1 % ; la marge d'intérêt net consolidé était de 4,13 % au quatrième trimestre 2024 contre 4,17 % au quatrième trimestre 2023. Le segment de la banque hypothécaire a augmenté les origines de prêts de 32,8 % pour atteindre 130,4 millions de dollars au quatrième trimestre 2024, tandis que le segment du financement à la consommation a rencontré des défis avec des pertes plus élevées à 2,62 % des prêts totaux moyens en 2024, contre 1,99 % en 2023.

L'entreprise a maintenu une forte liquidité avec 288,1 millions de dollars d'actifs liquides et 606,2 millions de dollars de disponibilité d'emprunt. Le capital total consolidé a augmenté, et la banque reste bien capitalisée selon les exigences réglementaires.

C&F Financial (NASDAQ: CFFI) meldete einen konsolidierten Nettoertrag von 6,0 Millionen Dollar für das vierte Quartal 2024, was einem Anstieg von 5,1 Millionen Dollar im vierten Quartal 2023 entspricht. Der jährliche Nettoertrag hingegen sank auf 19,9 Millionen Dollar im Jahr 2024 von 23,7 Millionen Dollar im Jahr 2023.

Wichtige Höhepunkte sind: Die Darlehen im Bereich Community Banking wuchsen im Jahresvergleich um 14,1%; die Einlagen stiegen um 5,1%; die konsolidierte Nettozinsmarge betrug 4,13% im vierten Quartal 2024 im Vergleich zu 4,17% im vierten Quartal 2023. Der Bereich Hypothekenbanking steigert die Darlehensgenehmigungen um 32,8% auf 130,4 Millionen Dollar im vierten Quartal 2024, während der Bereich Konsumfinanzierung mit höheren Abschreibungen von 2,62% der durchschnittlichen Gesamtdarlehen im Jahr 2024 konfrontiert ist, verglichen mit 1,99% im Jahr 2023.

Das Unternehmen behielt eine starke Liquidität mit 288,1 Millionen Dollar an liquiden Mitteln und 606,2 Millionen Dollar an Kreditverfügbarkeiten. Das gesamte konsolidierte Eigenkapital stieg, und die Bank bleibt gemäß den regulatorischen Anforderungen gut kapitalisiert.

Positive
  • Q4 2024 net income increased 18% YoY to $6.0 million
  • Community banking loans grew 14.1% YoY
  • Deposits increased 5.1% YoY
  • Mortgage banking loan originations increased 32.8% YoY in Q4
  • Strong liquidity position with $894.3 million in combined liquid assets and borrowing availability
Negative
  • Annual net income decreased 16% to $19.9 million in 2024
  • Net interest margin declined to 4.12% in 2024 from 4.31% in 2023
  • Consumer finance segment net charge-offs increased to 2.62% from 1.99% YoY
  • Consumer finance segment net income decreased 52% YoY

Insights

C&F Financial 's 2024 results reveal a complex financial picture with notable strengths and challenges. The 17.9% increase in Q4 earnings to $6.0 million demonstrates improving momentum, despite the 16.1% decline in full-year earnings to $19.9 million.

The community banking segment's performance is particularly noteworthy, with 14.1% YoY loan growth and 5.1% deposit growth. However, the deposit mix shift toward time deposits amid higher rates suggests increasing funding costs pressure. The stabilization of net interest margin at 4.13% in Q4 is encouraging, though full-year compression of 19 basis points indicates ongoing profitability challenges.

Credit quality metrics demand attention, especially in the consumer finance segment where net charge-offs increased to 2.62% from 1.99% YoY. The segment's delinquency rate of 3.90%, while improved from year-end 2023, increased from Q3, suggesting potential continued pressure on credit performance.

The mortgage banking segment's turnaround to profitability, despite challenging market conditions, demonstrates effective cost management and operational adaptation. The 32.8% increase in Q4 loan originations to $130.4 million is particularly impressive given the high-rate environment.

Liquidity position remains robust with $288.1 million in liquid assets and $606.2 million in borrowing availability, providing $439.1 million excess coverage of uninsured deposits. The 's strategic capital management, including a measured dividend payout ratio of 29.3% and active share repurchase program, reflects prudent balance sheet management while maintaining strong regulatory capital levels.

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 

_________________
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.”

                  
  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

 


FAQ

What was CFFI's net income for Q4 2024 compared to Q4 2023?

CFFI reported net income of $6.0 million for Q4 2024, compared to $5.1 million for Q4 2023, representing an 18% increase.

How much did CFFI's loan portfolio grow in 2024?

CFFI's community banking segment loans grew by $180.0 million, or 14.1%, compared to December 31, 2023.

What was CFFI's deposit growth in 2024?

CFFI's deposits increased by $104.7 million, or 5.1%, compared to December 31, 2023.

How did CFFI's mortgage banking segment perform in Q4 2024?

CFFI's mortgage banking segment loan originations increased by $32.2 million, or 32.8%, to $130.4 million in Q4 2024 compared to Q4 2023.

What was CFFI's net interest margin in 2024 vs 2023?

CFFI's consolidated net interest margin was 4.12% for 2024, down from 4.31% in 2023.

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C&F Financial Corp

NASDAQ:CFFI

CFFI Rankings

#3749 Ranked by Market Cap
#1265 Ranked by Dividends

CFFI Latest News

Nov 21, 2024
C&F Financial Corporation Announces Quarterly Dividend
Oct 29, 2024
C&F Financial Corporation Announces Net Income for Third Quarter and First Nine Months
Aug 21, 2024
C&F Financial Corporation Announces Quarterly Dividend
Jul 24, 2024
C&F Financial Corporation Announces Net Income for Second Quarter and First Six Months
May 23, 2024
C&F Financial Corporation Announces Quarterly Dividend

CFFI Stock Data

242.77M
3.00M
7.53%
33.22%
0.86%
Banks - Regional
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