C&F Financial Corporation (CFFI) investor relations material

Executive summary

• Net income rose to $6.8 million for Q1 2026, up from $5.4 million in Q1 2025, with EPS increasing to $2.08 from $1.66 year-over-year, driven by growth in community and mortgage banking, partially offset by a loss in consumer finance.

• Maintained strong asset quality, capital ratios, and a diversified deposit base, supporting stable funding and growth.

• Loans grew $20.5 million to $2.04 billion, and deposits increased $53.7 million to $2.40 billion since year-end 2025.

• Continued execution of long-term strategy, focusing on value creation, risk management, and community engagement.

• Subsequent to quarter-end, the company sold its interest in Bearing Insurance Group, expecting an $8.3 million pre-tax gain, and restructured its securities portfolio, incurring a $7.1 million pre-tax loss for Q2 2026.

Financial highlights

• Total assets reached $2.81 billion, total loans $2.04 billion, and total deposits $2.40 billion as of March 31, 2026.

• Net interest income for Q1 2026 was $27.7 million, up from $25.0 million in Q1 2025.

• Noninterest income for Q1 2026 was $8.6 million, up 12.9% year-over-year, mainly from higher mortgage loan production and related fees.

• Tangible book value per share increased to $73.70, up from $64.39 a year earlier; book value per share was $81.73 at March 31, 2026.

• Noninterest expense increased 5.4% to $24.3 million, primarily due to higher salaries and benefits.

Outlook and guidance

• Management expects continued loan growth in community banking and runoff in the marine/RV portfolio in consumer finance.

• Net interest margin may face pressure if market rates decline further, but could benefit from loan repricing and new securities purchases.

• Strategic initiatives emphasize performance, technology, risk management, and cross-company collaboration.

• The company anticipates recognizing the Bearing Insurance Group sale gain and securities restructuring loss in Q2 2026.

• Management remains cautious due to economic risks from geopolitical tensions and interest rate volatility.