C&F Financial Corporation Reports 11% Increase in Q2 2026 Net Income to $8.6 Million

C&F Financial Corporation reported a consolidated net income of $8.6 million for the second quarter of 2026, reflecting an increase of 11% from $7.8 million in the same period of 2025. For the first half of 2026, net income rose to $15.4 million, up from $13.2 million year-over-year. The earnings per share for the second quarter were $2.63, compared to $2.37 in the prior year. The growth in profitability was primarily driven by higher net interest income, which increased to $29.1 million from $26.5 million, attributed to a rise in average earning assets and improved net interest margin.

The company experienced significant changes in its loan portfolio, with total loans held for investment increasing to $2.1 billion as of June 30, 2026, up from $2.05 billion at the end of 2025. This growth was largely due to an increase in commercial real estate and land acquisition loans. However, the consumer finance segment saw a slight decline in loans, primarily due to reduced activity in marine and recreational vehicle financing. Deposits also grew, reaching $2.37 billion, a $19.6 million increase from the previous period, driven by higher balances in time deposits and noninterest-bearing demand deposits.

Strategically, C&F Financial executed a Portfolio Restructuring during the second quarter, which involved selling $72.6 million in securities with a lower yield and purchasing $67.8 million in higher-yield securities. This restructuring resulted in a pre-tax loss of $7.1 million but is expected to enhance future earnings. Additionally, the company completed the sale of its equity interest in Bearing Insurance Group, resulting in an after-tax gain of $6.4 million. The restructuring and sale were part of the company's efforts to optimize its investment portfolio and improve overall financial performance.

Operationally, the community banking segment reported a net income of $8.2 million for the second quarter, up from $7.1 million in the prior year, while the mortgage banking segment's net income increased to $1.1 million from $985,000. The consumer finance segment, however, reported a slight decline in net income to $538,000 from $539,000. The company also noted a decrease in nonaccrual loans, indicating improved asset quality, with nonaccrual loans representing 0.09% of total loans as of June 30, 2026.

Looking ahead, C&F Financial remains focused on maximizing earnings and deploying capital for growth. The company anticipates continued loan growth, particularly in the community banking segment, and plans to maintain a strong capital position while managing interest rate risk. The outlook reflects confidence in the strategic initiatives undertaken, including geographic expansion and product offerings, which are expected to enhance shareholder value in the long term.