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.
Shares of C&F Financial Corporation (CFFI - Free Report) have gained 5.1% since reporting results for the fourth quarter of 2025. This compares with the S&P 500 index’s 0.1% decline over the same time frame. Over the past month, the stock has gained 8.3% compared with the S&P 500’s 0.8% return.
C&F Financial reported consolidated net income of $6.7 million for the fourth quarter of 2025, up 11% from $6 million in the year-ago quarter. For the year ended Dec. 31, 2025, net income rose 36% to $27 million from $19.9 million in 2024.
Earnings per share for the fourth quarter increased to $2.07 from $1.87 a year earlier, while full-year EPS climbed to $8.29 from $6.01. Profitability metrics also improved on an annual basis, with return on average assets rising to 1.01% from 0.80% and return on average equity increasing to 11.11% from 9.02%.
C&F Financial Corporation Price, Consensus and EPS Surprise
Balance sheet growth remained a notable theme during the period. Total assets increased to $2.77 billion as of Dec. 31, 2025, compared with $2.56 billion a year earlier. Deposits grew 8.1% year over year to $2.35 billion, reflecting higher balances across time deposits, savings, money market and non-interest-bearing accounts. Loan growth was led by the community banking segment, where loans increased by $136.7 million, or 9.4%, from that reported on Dec. 31, 2024. Average loans for the consolidated company rose 10% for the year, whereas average deposits increased 7.2% year over year.
Net interest income on a fully taxable equivalent basis increased to $107.4 million for the year, up from $97.9 million in 2024. This improvement was supported by higher yields on loans and securities and balance sheet growth. The consolidated net interest margin expanded to 4.21% for the year from 4.12% in the prior year. Asset quality indicators remained relatively stable, with community banking non-accrual loans at 0.07% of total loans at the year-end, up from 0.02% a year earlier, while the allowance for credit losses declined slightly as a percentage of total loans.
Management Commentary
Management emphasized the benefits of a diversified business model in driving improved performance during 2025. The chief executive officer highlighted growth in loans and deposits in the community banking segment, increased wealth advisory revenues, higher mortgage loan originations and efforts to enhance operational efficiencies in the consumer finance segment as key contributors to earnings growth.
Management also pointed to improvement in the net interest margin, strong liquidity and capital positions, and solid asset quality as indicators of the company’s overall financial strength.
Factors Influencing Headline Numbers
Higher interest income was a primary driver of the year-over-year earnings increase, supported by growth in average loan balances and higher yields on securities. These gains were partially offset by higher interest expenses, reflecting increased balances of interest-bearing deposits, as well as higher non-interest expenses.
Salaries and employee benefits rose due to incentive accruals tied to improved performance and the addition of a seasoned lending team as the company expanded into Southwest Virginia. Marketing and advertising expenses also increased in connection with a strategic marketing initiative launched in the second half of 2024.
Provision for credit losses had a mixed impact across segments.
The community banking segment recorded a net reversal of provision for credit losses for the year compared with a provision in 2024 due to the resolution of a non-performing commercial real estate loan.
In contrast, the consumer finance segment recorded provisions consistent with the prior year, reflecting ongoing credit costs in that portfolio.
Mortgage banking results benefited from higher loan originations and increased gains on sales of loans despite elevated mortgage rates and constrained housing inventory.
Guidance
Management reiterated its commitment to executing a strategic plan focused on leveraging core strengths, expanding in targeted markets, and maintaining disciplined balance sheet and risk management practices. The company signaled an ongoing emphasis on expanding loans, maintaining a stable deposit base, and improving operational efficiency in future periods.
Other Developments
The company authorized a share repurchase program in December 2025, allowing for the repurchase of up to $5 million of common stock between Jan. 1, 2026, and Dec. 31, 2026, following the expiration of a similar program in 2025 under which no shares were repurchased. The company also declared total cash dividends of $1.84 per share for 2025, reflecting a payout ratio of 22.2% of earnings. These actions underscore management’s focus on capital management, alongside organic growth initiatives.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
C&F Financial Q4 Earnings Rise Y/Y on Loan Growth, Margin Gains
Shares of C&F Financial Corporation (CFFI - Free Report) have gained 5.1% since reporting results for the fourth quarter of 2025. This compares with the S&P 500 index’s 0.1% decline over the same time frame. Over the past month, the stock has gained 8.3% compared with the S&P 500’s 0.8% return.
C&F Financial reported consolidated net income of $6.7 million for the fourth quarter of 2025, up 11% from $6 million in the year-ago quarter. For the year ended Dec. 31, 2025, net income rose 36% to $27 million from $19.9 million in 2024.
Earnings per share for the fourth quarter increased to $2.07 from $1.87 a year earlier, while full-year EPS climbed to $8.29 from $6.01. Profitability metrics also improved on an annual basis, with return on average assets rising to 1.01% from 0.80% and return on average equity increasing to 11.11% from 9.02%.
C&F Financial Corporation Price, Consensus and EPS Surprise
C&F Financial Corporation price-consensus-eps-surprise-chart | C&F Financial Corporation Quote
Other Key Business Metrics
Balance sheet growth remained a notable theme during the period. Total assets increased to $2.77 billion as of Dec. 31, 2025, compared with $2.56 billion a year earlier. Deposits grew 8.1% year over year to $2.35 billion, reflecting higher balances across time deposits, savings, money market and non-interest-bearing accounts. Loan growth was led by the community banking segment, where loans increased by $136.7 million, or 9.4%, from that reported on Dec. 31, 2024. Average loans for the consolidated company rose 10% for the year, whereas average deposits increased 7.2% year over year.
Net interest income on a fully taxable equivalent basis increased to $107.4 million for the year, up from $97.9 million in 2024. This improvement was supported by higher yields on loans and securities and balance sheet growth. The consolidated net interest margin expanded to 4.21% for the year from 4.12% in the prior year. Asset quality indicators remained relatively stable, with community banking non-accrual loans at 0.07% of total loans at the year-end, up from 0.02% a year earlier, while the allowance for credit losses declined slightly as a percentage of total loans.
Management Commentary
Management emphasized the benefits of a diversified business model in driving improved performance during 2025. The chief executive officer highlighted growth in loans and deposits in the community banking segment, increased wealth advisory revenues, higher mortgage loan originations and efforts to enhance operational efficiencies in the consumer finance segment as key contributors to earnings growth.
Management also pointed to improvement in the net interest margin, strong liquidity and capital positions, and solid asset quality as indicators of the company’s overall financial strength.
Factors Influencing Headline Numbers
Higher interest income was a primary driver of the year-over-year earnings increase, supported by growth in average loan balances and higher yields on securities. These gains were partially offset by higher interest expenses, reflecting increased balances of interest-bearing deposits, as well as higher non-interest expenses.
Salaries and employee benefits rose due to incentive accruals tied to improved performance and the addition of a seasoned lending team as the company expanded into Southwest Virginia. Marketing and advertising expenses also increased in connection with a strategic marketing initiative launched in the second half of 2024.
Provision for credit losses had a mixed impact across segments.
The community banking segment recorded a net reversal of provision for credit losses for the year compared with a provision in 2024 due to the resolution of a non-performing commercial real estate loan.
In contrast, the consumer finance segment recorded provisions consistent with the prior year, reflecting ongoing credit costs in that portfolio.
Mortgage banking results benefited from higher loan originations and increased gains on sales of loans despite elevated mortgage rates and constrained housing inventory.
Guidance
Management reiterated its commitment to executing a strategic plan focused on leveraging core strengths, expanding in targeted markets, and maintaining disciplined balance sheet and risk management practices. The company signaled an ongoing emphasis on expanding loans, maintaining a stable deposit base, and improving operational efficiency in future periods.
Other Developments
The company authorized a share repurchase program in December 2025, allowing for the repurchase of up to $5 million of common stock between Jan. 1, 2026, and Dec. 31, 2026, following the expiration of a similar program in 2025 under which no shares were repurchased. The company also declared total cash dividends of $1.84 per share for 2025, reflecting a payout ratio of 22.2% of earnings. These actions underscore management’s focus on capital management, alongside organic growth initiatives.