Executive Summary

Q3 2025 delivered strong year-over-year growth: net income rose 31.2% to $7.1M and diluted EPS increased to $2.18; net interest margin was 4.24% vs. 4.13% in Q3 2024, supported by loan and deposit growth in Community Banking and higher mortgage originations .
Mortgage Banking originations increased 6.4% year-over-year to $167.0M but fell 21.8% sequentially on seasonal factors; Community Banking posted a net reversal of credit loss provision, while Consumer Finance maintained elevated charge-offs and provisioning .
Liquidity and capital remained robust: uninsured deposits were 29.9% of total deposits, with liquid assets plus borrowing availability exceeding uninsured deposits by $496.3M; the bank remained well capitalized with CET1 of 11.1% (Corp) and 13.7% (Bank) .
Dividend maintained at $0.46 per share (paid Oct 1); no repurchases under the $5M 2025 authorization; strategic expansion into Southwest Virginia continues to be emphasized as a growth catalyst .
Street consensus (S&P Global) for EPS/Revenue was unavailable; therefore, estimate beat/miss cannot be assessed for this micro-cap bank this quarter. S&P Global consensus coverage appears limited.

What Went Well and What Went Wrong

What Went Well

Strong consolidated profitability: net income up 31.2% YoY to $7.1M; diluted EPS rose to $2.18, with NIM 4.24% vs. 4.13% in Q3 2024 .
Community Banking momentum: net income $7.4M vs. $5.3M last year; loan growth and deposit growth with a net reversal of provision for credit losses of $0.1M in Q3 .
Mortgage Banking resilience: loan originations $167.0M (+6.4% YoY) and net income $0.641M vs. $0.351M last year; higher gains on loan sales and fee income despite elevated rates .
CEO tone confident: “We are delighted and proud of our third quarter results… diversified business model… liquidity, capital position and asset quality remain strong…” (Tom Cherry, CEO) .

What Went Wrong

Sequential mortgage softness: originations down $46.5M (-21.8% QoQ) due to seasonality, trimming gains sequentially despite YoY growth .
Consumer Finance credit normalization: net charge-offs at an annualized 2.68% in Q3 2025 and 2.51% year-to-date; delinquent loans rose vs. prior year; segment net income modest at $0.231M .
Community Banking nonaccruals increased to $1.2M (from $0.333M at 12/31/24) due primarily to one residential mortgage downgrade earlier in 2025 (still low as % of loans) .

Financial Results

Consolidated Highlights (YoY and Seq)

Metric	Q3 2024	Q2 2025	Q3 2025
Interest Income ($USD Millions)	$36.131	$37.407	$38.783
Interest Expense ($USD Millions)	$11.442	$10.899	$11.609
Net Interest Income ($USD Millions)	$24.689	$26.508	$27.174
Gains on Sales of Loans ($USD Millions)	$1.825	$2.458	$1.896
Other Noninterest Income ($USD Millions)	$6.947	$7.390	$6.948
Provision for Credit Losses – Community ($USD Millions)	$0.700	($0.300)	($0.100)
Provision for Credit Losses – Consumer ($USD Millions)	$3.000	$2.400	$3.000
Net Income ($USD Millions)	$5.420	$7.767	$7.113
Diluted EPS ($)	$1.65	$2.37	$2.18
Net Interest Margin (%)	4.13%	4.27%	4.24%

Segment Net Income

Segment	Q3 2024 ($USD Millions)	Q2 2025 ($USD Millions)	Q3 2025 ($USD Millions)
Community Banking	$5.337	$7.116	$7.378
Mortgage Banking	$0.351	$0.985	$0.641
Consumer Finance	$0.311	$0.539	$0.231
Other / Holding Company & Eliminations	($0.579)	($0.873)	($1.137)
Total	$5.420	$7.767	$7.113

KPIs and Balance Sheet

KPI	Q3 2024	Q2 2025	Q3 2025
Community Banking Loans (Net) ($USD Millions)	$1,414.576	$1,513.082	$1,527.809
Consumer Finance Loans (Net) ($USD Millions)	$454.062	$439.005	$440.968
Deposits ($USD Millions)	$2,135.891	$2,256.314	$2,298.035
Mortgage Originations ($USD Millions)	$156.968	$213.523	$167.018
Community Banking Nonaccrual Loans ($USD Thousands)	—	$1,075	$1,164
Consumer Finance Nonaccrual Loans ($USD Thousands)	$614	$697	$1,327
Uninsured Deposits ($USD Millions; % of Deposits)	—	$677.7; 30.0%	$686.2; 29.9%
Liquid Assets ($USD Millions)	—	$373.7	$441.4
Borrowing Availability ($USD Millions)	—	$576.4	$612.3
Total Borrowings ($USD Millions)	$113.683	$146.135 (repurchase+other)	$113.406
Book Value / Share ($)	—	$74.21	$78.23
Tangible Book Value / Share ($)	—	$66.12	$70.15
Dividend / Share ($)	$0.44	$0.46	$0.46

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue / EPS	Q4 2025 / FY 2025	None provided	None provided	Maintained (no formal guidance)
Net Interest Margin	FY 2025	None provided	Commentary only	Maintained (no formal guidance)
Credit Costs (Community Banking)	FY 2025	None provided	Commentary only	Maintained (no formal guidance)
Credit Costs (Consumer Finance)	FY 2025	None provided	Commentary only	Maintained (no formal guidance)
Dividend per Share	Q3–Q4 2025	$0.46 (Q2)	$0.46 (Q3, paid Oct 1)	Maintained
Share Repurchase	2025	Authorized up to $5.0M	No repurchases in Q3 2025	Maintained program; activity unchanged

Note: Management did not provide quantitative guidance ranges in the materials reviewed; commentary emphasized diversified model, liquidity, and disciplined growth .

Earnings Call Themes & Trends

No formal earnings call transcript was available in our document system for Q3 2025; themes below reflect management commentary across Q1, Q2, and Q3 press releases.

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q3 2025)	Trend
Loan Growth & Deposit Mix	Strong Community Banking loan growth (+$143.4M vs. 6/30/24), deposits +$150.3M; mix shift toward higher-yielding loans; lower rates on time deposits (Q2)	Loans +$112.9M YoY; deposits +$162.1M YoY; higher earning asset yields; lower costs of interest-bearing deposits YoY	Positive growth, improving mix
Net Interest Margin	NIM 4.16% (Q1) and 4.27% (Q2) improved vs. prior year	NIM 4.24% (Q3); spread 3.53%	Stable at elevated levels
Mortgage Banking Activity	Q1 originations $113.8M (+20.6% YoY) ; Q2 $213.5M (+46.2% YoY)	Q3 $167.0M (+6.4% YoY), down 21.8% QoQ on seasonal factors	Seasonal moderation, YoY strength
Consumer Finance Credit	Q1 net charge-offs 2.64% annualized; delinquency 3.05% ; Q2 NCOs 2.42% YTD; delinquency 3.81%	Q3 NCOs 2.68% (quarter); 2.51% YTD; delinquency 4.00%	Elevated losses and delinquency
Liquidity & Uninsured Deposits	Liquid assets $315.0M (Q1); availability $598.7M; uninsured 29.1%	Liquid assets $441.4M; availability $612.3M; uninsured 29.9% (coverage > uninsured by $496.3M)	Strong liquidity coverage
Capital & Dividends	Well-capitalized; dividend $0.46; CET1 10.8% corp (Q1)	Well-capitalized; dividend maintained; CET1 11.1% corp; Bank CET1 13.7%	Strong capital; dividend consistency
Strategic Expansion	Southwest Virginia team announced in July (Roanoke, Lynchburg, Danville, Martinsville, Blacksburg)	Expansion “already yielding promising results,” with higher salaries tied to growth	Execution underway

Management Commentary

“We are delighted and proud of our third quarter results… Our performance this quarter highlights the strength of our diversified business model… our liquidity, capital position and asset quality remain strong and give us confidence in our ability to continue growing responsibly. Additionally, our recent expansion into Southwest Virginia… is already yielding promising results.” — Tom Cherry, President & CEO .
Community Banking: higher interest income on larger loan balances and cash reserves, mix shift to higher-yielding loans, and lower provision for credit losses; partially offset by higher interest expense, incentive accruals, and marketing spend .
Mortgage Banking: higher gains and fee income on increased originations; partially offset by higher variable expenses and lower reversals of indemnification provision .
Consumer Finance: lower interest income on smaller balances and higher net charge-offs drove higher provisions; partially offset by lower allocated interest expense and reduced overhead .

Q&A Highlights

No Q3 2025 earnings call transcript was available in our system; as such, Q&A themes and any guidance clarifications cannot be assessed from primary transcripts this quarter.

Estimates Context

S&P Global Wall Street consensus for EPS and Revenue was unavailable for CFFI in Q3 2025; no “# of estimates” reported. As a result, beat/miss vs. Street cannot be determined this quarter.
Actual results: diluted EPS $2.18; net interest income $27.17M; net interest margin 4.24% .
Implication: In the absence of consensus, buyside should assess trajectory vs. prior periods and segment-level drivers; consider extrapolation using NIM, deposit costs, credit trends, and mortgage pipeline rather than headline “beats.”

Key Takeaways for Investors

Healthy core earnings power: NIM remains >4.2% with loan and deposit growth supporting higher net interest income; expect stability if rate environment remains range-bound .
Community Banking is the engine: net income of $7.4M in Q3 aided by mix shift to higher-yield loans and credit provision reversal; continued loan growth could sustain margin and fee momentum .
Mortgage Banking resilient but seasonal: originations up YoY, down QoQ; watch Q4 pipeline and industry rate trajectory for volume and gain-on-sale trends .
Consumer Finance risk normalization: elevated charge-offs and higher delinquency warrant continued monitoring; management remains proactive on collections and provisioning .
Liquidity and capital strength de-risk downside: liquid assets plus borrowing capacity comfortably cover uninsured deposits; CET1 and leverage ratios well above minimums .
Dividend continuity with valuation support: dividend maintained at $0.46/share; tangible book per share improved to $70.15, providing downside protection in small-cap bank context .
Near-term trading lens: lack of consensus coverage means narrative-driven moves; catalysts include Southwest Virginia expansion execution, NIM resilience, and any signs of easing Consumer Finance credit costs .

C & F FINANCIAL CORP (CFFI)·Q3 2025 Earnings Summary