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C&

C & F FINANCIAL CORP (CFFI)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 EPS was $2.37 and net income was $7.8M, up 58% and 54% YoY, driven by stronger community banking growth and mortgage origination rebound; NIM expanded to 4.27% from 4.16% in Q1 and 4.12% in Q2 2024 .
  • Management highlighted “strong second-quarter earnings,” citing impressive loan and deposit growth in community banking and higher mortgage originations; they are “optimistic about the second half” and flagged expansion into Southwest Virginia as a growth vector .
  • Segment mix: Community Banking net income rose sharply to $7.1M YoY; Mortgage Banking net income more than doubled; Consumer Finance profitability softened on higher credit costs and lower average loans despite efficiency actions .
  • Liquidity and capital remained conservative: liquid assets plus capacity exceeded uninsured deposits by $414M; C&F Bank remains “well capitalized” (CET1 13.6%, Tier 1 leverage 11.3%) .
  • Potential catalysts: continued NIM improvement from lower time-deposit costs, mortgage volumes from newly onboarded loan officers, and Southwest Virginia build-out; watch Consumer Finance credit trends and provisioning trajectory .

What Went Well and What Went Wrong

  • What Went Well

    • Margin and earnings power improved: NIM rose to 4.27% (from 4.16% in Q1 and 4.12% YoY), supporting EPS of $2.37 and net income of $7.8M .
    • Community Banking growth and profitability: loans +$76.7M q/q (10.6% annualized), deposits +$85.5M q/q (7.9% annualized); segment net income reached $7.1M vs $4.6M YoY .
    • Mortgage rebound: originations $213.5M (+46% YoY, +$99.8M q/q) with gains on sales and fees higher; management onboarded a “large group of loan officers” on Mar 31, 2025 .
    • Management tone: “We are very pleased with our strong second-quarter earnings… Looking ahead, we’re optimistic about the second half of the year,” with expansion into Southwest Virginia (Roanoke, Lynchburg, Danville, Martinsville, Blacksburg) .

  • What Went Wrong

    • Consumer Finance pressure: Net income declined YoY as provision rose ($2.4M vs $2.1M YoY) with annualized YTD NCOs at 2.42% (vs 2.21% YTD 2024), though improving sequentially in Q2 vs Q1 .
    • Credit indicators mixed: Community Banking nonaccruals increased to $1.1M (from $333k at 12/31/24); ACL% eased with portfolio mix/shorter expected lives .
    • Consumer Finance delinquencies remain elevated: total delinquent loans 3.81% at 6/30/25 (3.51% at 6/30/24); use of payment deferrals averaged 1.73% of auto loans in Q2 .

Financial Results

Headline results vs prior periods and margins

MetricQ2 2024Q1 2025Q2 2025
EPS (basic & diluted) ($)$1.50 $1.66 $2.37
Net Income ($M)$5.0 $5.4 $7.8
Net Interest Margin (%)4.12% 4.16% 4.27%
ROAA (annualized) (%)0.82% 0.84% 1.18%
ROAE (annualized) (%)9.31% 9.35% 13.06%
Total Interest Income ($M)$34.31 $35.99 $37.41
Net Interest Income – FTE ($M)$24.12 $25.30 $26.81
Gains on sale of loans ($M)$1.70 $1.85 $2.46
Other noninterest income ($M)$5.62 $5.73 $7.39

“Revenue” and estimates context

MetricQ2 2024Q1 2025Q2 2025
Revenue ($M)N/A$29.58*$34.26*
EPS Consensus MeanN/AN/AN/A
Revenue Consensus MeanN/AN/AN/A

Values marked with * retrieved from S&P Global.

Segment net income

Segment Net Income ($M)Q2 2024Q1 2025Q2 2025
Community Banking$4.57 $5.45 $7.12
Mortgage Banking$0.38 $0.43 $0.99
Consumer Finance$0.89 $0.23 $0.54
Other / Holding Co.($0.81) ($0.71) ($0.87)
Total$5.03 $5.40 $7.77

KPIs and balance sheet

KPIQ2 2024Q1 2025Q2 2025
Community Banking Loans (end) ($M)$1,369.9 $1,481.2 $1,530.3
Consumer Finance Loans (end) ($M)$454.9 $462.1 $461.4
Total Deposits (end) ($M)$2,106.1 $2,216.7 $2,256.3
Mortgage Originations ($M)$146.0 $113.8 $213.5
Consumer Finance NCOs (annualized YTD, %)2.21% (YTD) 2.64% 2.42%
Uninsured Deposits (% of total)N/A29.1% 30.0%
Liquidity Coverage over Uninsured ( $M excess)N/A$417.1 $414.0
C&F Bank CET1 (%)N/A12.4% 13.6%
C&F Bank Tier 1 Leverage (%)N/A10.3% 11.3%

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue/EPSFY/Q3Not providedNot providedMaintained (no formal guidance)
NIMFY/Q3Not providedDirectionally positive driver: lower time-deposit rates, asset mixQualitative: constructive backdrop
Mortgage originations2H25Not providedExpect support from added loan officers and seasonal factorsPositive qualitative
Consumer Finance creditFY25Not providedMonitoring delinquencies/NCOs; provision may rise if performance worsensMaintained caution
Dividend per shareOngoing$0.46 (raised in Q1) $0.46 declared in Q2; subsequent $0.46 for Oct 1, 2025 Maintained
Share repurchase2025$5M authorization; no Q1 repurchases No Q2 repurchases Maintained program, no activity

Earnings Call Themes & Trends

Note: No Q2 2025 earnings call transcript was available; themes reflect the press release and investor presentation.

TopicPrevious Mentions (Q4 2024, Q1 2025)Current Period (Q2 2025)Trend
Net interest margin and deposit costsNIM stabilized in Q4; modest Q1 improvement; higher time-deposit mix weighed on costs NIM 4.27%; lower time-deposit rates helped; asset yields supported by mix/renewals Improving
Community Banking growthSolid loan/deposit growth across markets in 2024 and Q1 Loans +$76.7M q/q; deposits +$85.5M q/q Strong and accelerating
Mortgage BankingQ4/Q1 originations improved despite rates; operations efficiencies Originations +46% YoY to $213.5M; new loan officers onboarded 3/31 Positive momentum
Consumer Finance credit2024 NCOs rose; Q1 NCOs 2.64%; focus on efficiency YTD NCOs 2.42%; delinquencies 3.81%; provision $2.4M Mixed but stable sequentially
Liquidity and uninsured depositsAmple liquidity vs uninsured in Q4/Q1 Liquidity + capacity exceed uninsured by $414M; uninsured 30% Stable, conservative
Expansion/market strategyQ4: Branch improvements; continuing investments Expansion into Southwest Virginia announced; leadership hires Expansion underway
Technology/efficiency2024: operational tech investments; Q1: ongoing efficiency Ongoing tech investments referenced Ongoing

Management Commentary

  • “We are very pleased with our strong second-quarter earnings. Our community banking segment delivered impressive loan and deposit growth, while our mortgage banking segment saw increased loan originations… we’re optimistic about the second half of the year.” — Thomas F. Cherry, President & CEO .
  • “This strategic move [Southwest Virginia expansion] extends our presence into key markets—including Roanoke, Lynchburg, Danville, Martinsville and Blacksburg” .
  • Investor presentation underscores top-tier performance and diversified model (ROAA 1.18% QTD ann., ROATCE 14.70%, TBV $66.12) .

Q&A Highlights

  • No Q2 2025 earnings call transcript was available; no Q&A highlights to report (company filed press release and investor presentation; no transcript found) .

Estimates Context

  • Wall Street consensus (S&P Global) for EPS and revenue was not available for Q2 2025 or Q1 2025; results are evaluated versus prior periods instead [functions.GetEstimates].
  • Reported “Revenue” (S&P Global actuals): Q1 2025 $29.58M; Q2 2025 $34.26M. No consensus means results vs estimates cannot be assessed; headline EPS of $2.37 compares favorably to prior periods .
    Values marked with * retrieved from S&P Global.

Key Takeaways for Investors

  • Earnings power inflected: NIM expanded to 4.27% and EPS to $2.37; ROAA/ROAE improved, aided by loan growth and lower time-deposit rates .
  • Community Banking is the engine: strong sequential loan/deposit growth and materially higher segment earnings .
  • Mortgage Banking is a bright spot: originations +46% YoY; added producers should support 2H volumes even amid higher-rate backdrop .
  • Consumer Finance remains the swing factor: credit costs elevated vs 2023; sequential NCO improvement but delinquencies still high—watch provisions and portfolio mix .
  • Balance sheet safety: liquidity and borrowing capacity exceed uninsured deposits by $414M; C&F Bank well capitalized (CET1 13.6%) .
  • Capital returns steady: dividend at $0.46 per quarter maintained; authorized $5M buyback not utilized in Q2, providing optionality .
  • Near-term stock catalysts: sustained NIM tailwinds, mortgage momentum from new loan officers, Southwest Virginia market entry; risk: consumer finance credit normalization .