We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
C&F Financial Q3 Profit Jumps 31% on Loan Growth and Margin Gains
Read MoreHide Full Article
Shares of C&F Financial Corporation (CFFI - Free Report) have lost 1.4% since the company reported its earnings for the third quarter of 2025. This compares to the S&P 500 Index’s 1.5% gain over the same period. Over the past month, however, the stock has increased 2.3%, marginally outperforming the S&P 500’s 2.2% gain, indicating a moderate recovery in investor sentiment following the earnings announcement.
C&F Financial reported consolidated net income of $7.1 million for the third quarter of 2025, marking a 31.2% increase from $5.4 million in the same quarter last year. Earnings per share (EPS) rose 32.1% to $2.18 from $1.65 in the prior-year quarter. For the first nine months of 2025, net income grew 46% year over year to $20.3 million, while EPS climbed to $6.22 from $4.15. The company’s annualized return on average assets improved to 1.06% from 0.86%, and its return on average equity rose to 11.6% from 9.74%. These figures underscore robust profitability, supported by higher interest income and lower credit loss provisions.
C&F Financial Corporation Price, Consensus and EPS Surprise
The community banking segment remained the principal earnings driver, reporting net income of $7.4 million for the quarter, up from $5.3 million a year ago. Growth stemmed primarily from higher interest income, a shift toward higher-yielding loans, and a net reversal of credit loss provisions totaling $100,000, compared with a $700,000 provision in the year-ago quarter. Average loans rose 9% year over year to $1.54 billion, while average deposits increased 6.7% to $1.72 billion.
The segment also benefited from an improved net interest margin of 4.24% compared with 4.13% in the prior year, reflecting a favorable asset mix and stable funding costs. However, higher salaries and marketing expenses partly offset these gains due to new hires and strategic expansion into Southwest Virginia, including the opening of a loan production office in Roanoke during July 2025.
Mortgage Banking Segment Momentum
The mortgage banking segment posted net income of $641,000, almost double the $351,000 reported a year earlier, driven by higher gains on loan sales and increased mortgage origination fees. Loan originations totaled $167 million, up 6.4% year over year, supported by both purchase and refinance activity despite a backdrop of elevated mortgage rates and limited housing inventory. Year-to-date originations surged 24.4% compared with the same period in 2024, underscoring the segment’s strong operational momentum.
Management noted that variable expenses tied to origination volumes—such as commissions and bonuses—also increased, but these were offset by higher revenue generation. The segment recorded modest reversals of indemnification provisions of $75,000 during the quarter, indicating improved credit performance and lower expected losses on previously sold mortgages.
Consumer Finance Segment Trends
The consumer finance segment experienced a softer performance, with quarterly net income declining to $231,000 from $311,000 in the year-ago period. The decrease reflected higher provisions for credit losses, which remained elevated at $3 million, consistent with the prior year. Average loan balances fell 3.6% year over year, while delinquent loans rose to 4% of total loans, from 3.49% a year earlier. Net charge-offs increased slightly to 2.68% of average total loans, suggesting some pressure in consumer credit quality amid a still-cautious macroeconomic environment.
Management indicated that the allowance for credit losses stood at $22.3 million, or 4.81% of total loans, a slight decrease from 2024-end, reflecting stable but closely monitored risk conditions.
Liquidity and Capital Position
Liquidity and capital levels remained solid. As of Sept. 30, 2025, total assets reached $2.71 billion, up from $2.55 billion a year ago, and total deposits grew 7.6% year over year to $2.30 billion. The company reported liquid assets of $441.4 million and borrowing capacity of $612.3 million, comfortably exceeding uninsured deposits (excluding secured and intercompany holdings).
Capital ratios also strengthened, with the total risk-based capital ratio at 15.3%, up from 14.1% at 2024-end, and the Tier 1 leverage ratio improving to 10.0%. C&F Bank continued to be categorized as “well capitalized” under FDIC regulatory standards. The quarterly cash dividend of $0.46 per share, representing a 21.1% payout ratio, underscores management’s confidence in the bank’s earnings durability.
Management Commentary
President and CEO Tom Cherry highlighted that third-quarter performance demonstrated the strength of the company’s diversified business model, emphasizing loan and deposit growth in the community banking unit and increased mortgage activity despite broader economic softness. Cherry added that the company’s strong liquidity, capital position, and asset quality provide a foundation for “responsible growth.” Management also pointed to promising early results from the Southwest Virginia expansion, which aligns with its strategic objective to broaden market reach.
Other Developments
During the quarter, C&F Financial expanded into Southwest Virginia through a new loan production office in Roanoke, adding an experienced lending team to bolster its commercial banking presence in the region. The company did not repurchase any shares under its $5 million repurchase authorization for 2025, which remains in effect through year-end. Additionally, unrealized losses on securities available for sale declined notably, from $23.7 million at year-end 2024 to $12.9 million, as market interest rates stabilized.
In summary, C&F Financial delivered a strong third quarter marked by double-digit earnings growth, expanding loan and deposit bases and improved margins. The results reflected prudent risk management, disciplined cost control, and steady contributions from mortgage operations. With robust capital and liquidity and an ongoing regional expansion strategy, the company appears well-positioned to sustain its earnings momentum into the coming quarters.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
C&F Financial Q3 Profit Jumps 31% on Loan Growth and Margin Gains
Shares of C&F Financial Corporation (CFFI - Free Report) have lost 1.4% since the company reported its earnings for the third quarter of 2025. This compares to the S&P 500 Index’s 1.5% gain over the same period. Over the past month, however, the stock has increased 2.3%, marginally outperforming the S&P 500’s 2.2% gain, indicating a moderate recovery in investor sentiment following the earnings announcement.
C&F Financial reported consolidated net income of $7.1 million for the third quarter of 2025, marking a 31.2% increase from $5.4 million in the same quarter last year. Earnings per share (EPS) rose 32.1% to $2.18 from $1.65 in the prior-year quarter. For the first nine months of 2025, net income grew 46% year over year to $20.3 million, while EPS climbed to $6.22 from $4.15. The company’s annualized return on average assets improved to 1.06% from 0.86%, and its return on average equity rose to 11.6% from 9.74%. These figures underscore robust profitability, supported by higher interest income and lower credit loss provisions.
C&F Financial Corporation Price, Consensus and EPS Surprise
C&F Financial Corporation price-consensus-eps-surprise-chart | C&F Financial Corporation Quote
Community Banking Segment Performance
The community banking segment remained the principal earnings driver, reporting net income of $7.4 million for the quarter, up from $5.3 million a year ago. Growth stemmed primarily from higher interest income, a shift toward higher-yielding loans, and a net reversal of credit loss provisions totaling $100,000, compared with a $700,000 provision in the year-ago quarter. Average loans rose 9% year over year to $1.54 billion, while average deposits increased 6.7% to $1.72 billion.
The segment also benefited from an improved net interest margin of 4.24% compared with 4.13% in the prior year, reflecting a favorable asset mix and stable funding costs. However, higher salaries and marketing expenses partly offset these gains due to new hires and strategic expansion into Southwest Virginia, including the opening of a loan production office in Roanoke during July 2025.
Mortgage Banking Segment Momentum
The mortgage banking segment posted net income of $641,000, almost double the $351,000 reported a year earlier, driven by higher gains on loan sales and increased mortgage origination fees. Loan originations totaled $167 million, up 6.4% year over year, supported by both purchase and refinance activity despite a backdrop of elevated mortgage rates and limited housing inventory. Year-to-date originations surged 24.4% compared with the same period in 2024, underscoring the segment’s strong operational momentum.
Management noted that variable expenses tied to origination volumes—such as commissions and bonuses—also increased, but these were offset by higher revenue generation. The segment recorded modest reversals of indemnification provisions of $75,000 during the quarter, indicating improved credit performance and lower expected losses on previously sold mortgages.
Consumer Finance Segment Trends
The consumer finance segment experienced a softer performance, with quarterly net income declining to $231,000 from $311,000 in the year-ago period. The decrease reflected higher provisions for credit losses, which remained elevated at $3 million, consistent with the prior year. Average loan balances fell 3.6% year over year, while delinquent loans rose to 4% of total loans, from 3.49% a year earlier. Net charge-offs increased slightly to 2.68% of average total loans, suggesting some pressure in consumer credit quality amid a still-cautious macroeconomic environment.
Management indicated that the allowance for credit losses stood at $22.3 million, or 4.81% of total loans, a slight decrease from 2024-end, reflecting stable but closely monitored risk conditions.
Liquidity and Capital Position
Liquidity and capital levels remained solid. As of Sept. 30, 2025, total assets reached $2.71 billion, up from $2.55 billion a year ago, and total deposits grew 7.6% year over year to $2.30 billion. The company reported liquid assets of $441.4 million and borrowing capacity of $612.3 million, comfortably exceeding uninsured deposits (excluding secured and intercompany holdings).
Capital ratios also strengthened, with the total risk-based capital ratio at 15.3%, up from 14.1% at 2024-end, and the Tier 1 leverage ratio improving to 10.0%. C&F Bank continued to be categorized as “well capitalized” under FDIC regulatory standards. The quarterly cash dividend of $0.46 per share, representing a 21.1% payout ratio, underscores management’s confidence in the bank’s earnings durability.
Management Commentary
President and CEO Tom Cherry highlighted that third-quarter performance demonstrated the strength of the company’s diversified business model, emphasizing loan and deposit growth in the community banking unit and increased mortgage activity despite broader economic softness. Cherry added that the company’s strong liquidity, capital position, and asset quality provide a foundation for “responsible growth.” Management also pointed to promising early results from the Southwest Virginia expansion, which aligns with its strategic objective to broaden market reach.
Other Developments
During the quarter, C&F Financial expanded into Southwest Virginia through a new loan production office in Roanoke, adding an experienced lending team to bolster its commercial banking presence in the region. The company did not repurchase any shares under its $5 million repurchase authorization for 2025, which remains in effect through year-end. Additionally, unrealized losses on securities available for sale declined notably, from $23.7 million at year-end 2024 to $12.9 million, as market interest rates stabilized.
In summary, C&F Financial delivered a strong third quarter marked by double-digit earnings growth, expanding loan and deposit bases and improved margins. The results reflected prudent risk management, disciplined cost control, and steady contributions from mortgage operations. With robust capital and liquidity and an ongoing regional expansion strategy, the company appears well-positioned to sustain its earnings momentum into the coming quarters.