C&F Financial Corporation Reports Increased Net Income and Loan Growth in Q1 2025

C&F Financial Corporation reported a significant increase in its financial performance for the first quarter of 2025, with net income rising to $5.4 million, compared to $3.4 million in the same period of 2024. This growth was driven by improved results across all business segments, particularly in community banking, which saw net income increase from $4.0 million to $5.4 million. The corporation's earnings per share also rose to $1.66 from $1.01 year-over-year, reflecting a strong return on average equity of 9.35%, up from 6.33%.

The company experienced notable changes in its loan portfolio, with total loans held for investment increasing to $1.94 billion, a rise of $22.9 million from the previous quarter. This growth was primarily attributed to a $27.6 million increase in commercial real estate loans. However, the consumer finance segment saw a decrease in loans by $4.7 million, reflecting a strategic shift in focus. Deposits also increased by $45.8 million, reaching $2.22 billion, driven by a rise in noninterest-bearing demand deposits.

C&F Financial's strategic initiatives included a new share repurchase program, allowing for the repurchase of up to $5 million of common stock throughout 2025. The corporation did not repurchase any shares during the first quarter but has $5 million remaining under this program. Additionally, the company reported a decrease in unrealized losses on its securities available for sale, which fell to $24.2 million from $30 million, indicating improved market conditions for its investment portfolio.

Operationally, the corporation's community banking segment reported a provision for credit losses of $100,000, significantly lower than the $500,000 recorded in the same quarter of 2024. This reduction reflects a more stable loan growth environment. The consumer finance segment's provision for credit losses was $2.9 million, slightly down from $3.0 million year-over-year, although net charge-offs increased to an annualized rate of 2.64% of average total loans.

Looking ahead, C&F Financial Corporation remains cautiously optimistic about its growth trajectory, with management emphasizing the importance of maintaining a strong capital position and liquidity. The corporation's total equity increased to $235.3 million as of March 31, 2025, compared to $227.0 million at the end of 2024, bolstered by net income and a decrease in unrealized losses. The company continues to monitor market conditions closely, particularly interest rate fluctuations, which could impact future earnings and loan performance.