C & F FINANCIAL CORP (CFFI): Results of Operations and Financial Condition
C & F FINANCIAL CORP (CFFI) filed an SEC Form 8-K — Results of Operations and Financial Condition. EXHIBIT 99.1 Monday, October 26, 2026 Contact: Jason Long, CFO (804) 843-2360 C&F Financial Corporation Announces Net Income for Third Quarter and First Nine Months of 2026 Toano, Va., October 26, 2026—C&F Financial Corporation (the Corporation) (NASDAQ: CFFI),
Facts are quoted from the filing text and checked against it. Details that could not be matched to the text are left out.
How this was made
The 30-second read
Why it matters
The earnings beat and asset sale provide fresh, material data that can influence short‑term price action.
Market read
First‑report earnings with a beat and a notable one‑time gain, offering a clear trading catalyst.
What to watch
Higher provision for credit losses and a $7.1M loss from the portfolio restructuring could pressure future earnings.
C&F Financial Corporation Announces Net Income for Third Quarter and First Nine Months of 2026
Third-quarter consolidated net income increased 16.1 percent to $8.3 million, supported by community banking loan growth and a higher net interest margin, while mortgage banking profitability declined and consumer-finance credit costs remained elevated versus the prior year.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Consolidated net income, third quarterGAAP | $8.26M | – | 16.1 percent |
| Consolidated net income, first nine monthsGAAP | $23.68M | – | 16.8 percent |
| Adjusted net income, third quarternon-GAAP | $8.26M | – | – |
| Adjusted net income, first nine monthsnon-GAAP | $22.93M | – | $2.7 million, or 13.1 percent |
| Earnings per share - basic and diluted, third quarterGAAP | $2.55 | – | – |
| Earnings per share - basic and diluted, first nine monthsGAAP | $7.26 | – | – |
| Adjusted earnings per share - basic and diluted, third quarternon-GAAP | $2.55 | – | – |
| Adjusted earnings per share - basic and diluted, first nine monthsnon-GAAP | $7.03 | – | – |
| Total interest income, third quarterGAAP | $41.58M | – | – |
| Total interest income, first nine monthsGAAP | $121.1M | – | – |
| Total interest expense, third quarterGAAP | $11.40M | – | – |
| Total interest expense, first nine monthsGAAP | $34.1M | – | – |
| Net interest income, third quarterGAAP | $30.17M | – | – |
| Net interest income, first nine monthsGAAP | $86.97M | – | – |
| Provision for credit losses, third quarterGAAP | $2.75M | – | – |
| Provision for credit losses, first nine monthsGAAP | $9,000 | – | – |
| Total noninterest income, third quarterGAAP | $8.04M | – | – |
| Total noninterest income, first nine monthsGAAP | $28.36M | – | – |
| Total noninterest expenses, third quarterGAAP | $25.28M | – | – |
| Total noninterest expenses, first nine monthsGAAP | $76.94M | – | – |
| Income before income taxes, third quarterGAAP | $10.18M | – | – |
| Income before income taxes, first nine monthsGAAP | $29.39M | – | – |
| Income tax expense, third quarterGAAP | $1.92M | – | – |
| Income tax expense, first nine monthsGAAP | $5.71M | – | – |
| Net interest margin (FTE), third quarternon-GAAP | 4.53 % | – | – |
| Net interest margin (FTE), first nine monthsnon-GAAP | 4.41 % | – | – |
| Annualized return on average assets, third quarterGAAP | 1.18 % | – | – |
| Annualized return on average equity, third quarterGAAP | 11.86 % | – | – |
| Annualized return on average tangible common equity, third quarternon-GAAP | 13.18 % | – | – |
| Total assetsGAAP | $2.81B | – | – |
| Total depositsGAAP | $2.36B | – | – |
| Loans, net of allowance for credit lossesGAAP | $2.10B | – | – |
| Total borrowingsGAAP | $138.1M | – | – |
| Total consolidated equityGAAP | $269.3M | – | – |
| Cash and due from banksGAAP | $15.19M | – | – |
| Interest-bearing deposits in other banksGAAP | $30.79M | – | – |
| Total cash and cash equivalentsGAAP | $45.98M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Community BankingNet income was $8.9 million for the third quarter of 2026 compared to $7.4 million for the third quarter of 2025. Higher interest income from loans and securities and the stronger loan base were partly offset by higher salaries and employee benefits and data processing expenses. | not reported | – | – |
| Mortgage BankingNet income was $266,000 for the third quarter of 2026 compared to $641,000 for the third quarter of 2025, due primarily to lower gains on sales of loans from lower margins, partly offset by higher mortgage lender services fee income. | not reported | – | – |
| Consumer FinanceNet income was $303,000 for the third quarter of 2026 compared to $231,000 for the third quarter of 2025. Lower provision for credit losses and lower interest expense allocation were partly offset by lower interest income. | not reported | – | – |
Capital returns
- The Corporation declared a quarterly cash dividend of 48 cents per share during the third quarter of 2026.
- The dividend was paid to shareholders on October 1, 2026.
- The dividend represented a payout ratio of 18.8 percent of earnings per share for the third quarter of 2026.
- The 2026 Repurchase Program authorizes repurchases of up to $5.0 million of the Corporation’s common stock from January 1, 2026 through December 31, 2026.
- During the third quarter of 2026, the Corporation repurchased 3 shares, or less than $1,000 of its common stock under the 2026 Repurchase Program.
What drove it
- Community banking segment loans grew $102.8 million, or 8.6 percent annualized, compared to December 31, 2025 and $148.1 million, or 9.6 percent, compared to September 30, 2025.
- Consolidated annualized net interest margin (FTE) was 4.53 percent for the third quarter of 2026, compared to 4.24 percent for the third quarter of 2025 and 4.41 percent for the second quarter of 2026.
- Mortgage banking segment loan originations increased $5.7 million, or 3.4 percent, to $172.8 million for the third quarter of 2026.
- Mortgage lender services fee income increased to $907,000 for the third quarter of 2026 from $768,000 for the third quarter of 2025.
- The first nine months included a pre-tax gain of $8.3 million from the sale of the Bearing equity interest and a pre-tax loss of $7.1 million from the Portfolio Restructuring.
- In the Portfolio Restructuring, the community banking segment sold securities with a book value of $72.6 million and purchased approximately $67.8 million of securities.
Concerns
- Mortgage banking net income declined to $266,000 in the third quarter of 2026 from $641,000 in the third quarter of 2025 because gains on sales of loans were lower due primarily to lower margins.
- Refinancings decreased during the third quarter by 22.7 percent compared to the third quarter of 2025 as interest rates rose during the quarter.
- Consumer finance annualized net charge-offs were 2.63 percent of average total loans in the third quarter of 2026, compared to 2.21 percent for the second quarter of 2026.
- Consumer finance net income for the first nine months was $760,000, compared to $1.0 million for the same period of 2025, due primarily to higher provision for credit losses associated with higher net charge-offs.
- The accumulated other comprehensive loss related to securities available for sale, net of deferred income taxes, increased to $23.2 million at September 30, 2026 from $10.2 million at December 31, 2025.
What to watch
- Community banking loan growth and the effect of the Lynchburg, Virginia loan production office.
- Net interest margin (FTE), which was 4.53 percent in the third quarter of 2026.
- Mortgage loan origination volume, gain-on-sale margins, and refinancing activity.
- Consumer finance charge-offs, delinquencies, payment deferrals, and the runoff of the marine and recreational vehicle portfolio.
- The provision for credit losses and allowance coverage in the community banking and consumer finance segments.
- Deposit flows, FHLB advances, and the level of unrealized losses on securities available for sale.
Balance sheet and cash flow
- Total assets were $2,811,188 at 9/30/2026, compared to $2,768,494 at 12/31/2025.
- Total deposits were $2,356,080 at 9/30/2026, compared to $2,345,723 at 12/31/2025.
- Total borrowings increased to $138.1 million at September 30, 2026 from $113.3 million at December 31, 2025 due primarily to an increase in FHLB advances used to help fund loan growth.
- Liquid assets were $389.4 million and borrowing availability was $641.7 million as of September 30, 2026.
- Uninsured deposits were approximately $720.4 million, or 30.6 percent of total deposits, as of September 30, 2026.
- Uninsured deposits excluding intercompany cash holdings and secured municipal deposits were approximately $587.2 million, or 24.9 percent of total deposits, as of September 30, 2026.
- Total consolidated equity increased $7.0 million at September 30, 2026 compared to December 31, 2025.
- Accumulated other comprehensive loss related to securities available for sale, net of deferred income taxes, increased to $23.2 million at September 30, 2026 from $10.2 million at December 31, 2025.
Analysis
C&F Financial reported third-quarter consolidated net income of $8.3 million, up 16.1 percent from $7.1 million a year earlier. Earnings per share were $2.55, compared with $2.18 in the third quarter of 2025. Net income was below the $8.6 million reported in the second quarter, while adjusted net income was $8.3 million in the third quarter compared with $7.9 million in the second quarter because the Bearing equity-interest sale and portfolio restructuring were recorded in the second quarter.
Core banking trends supported the quarter. Net interest income was $30,174, compared with $27,174 in the prior-year quarter, while net interest margin on a fully taxable equivalent basis improved to 4.53 percent from 4.24 percent. Community banking average loans increased $133.0 million, or 8.6 percent, from the prior-year quarter, led by commercial real estate and land acquisition and development lending. Average deposits increased $99.1 million, or 4.4 percent. The portfolio restructuring replaced securities with a weighted average yield of 1.40% with approximately $67.8 million of securities carrying a weighted average yield of 4.70%.
Community banking generated net income of $8.9 million, versus $7.4 million a year earlier. Mortgage banking originations rose to $172.8 million from $167.0 million, but segment net income fell to $266,000 from $641,000 as lower gain-on-sale margins outweighed higher mortgage lender services fee income. Consumer finance net income rose to $303,000 from $231,000 for the quarter, but average loans declined and the annualized net charge-off rate increased to 2.63 percent from 2.21 percent in the second quarter. The consumer finance segment also reported payment deferrals of automobile loans of 2.05 percent of average automobile loans outstanding during the quarter.
For the first nine months, reported net income increased to $23.7 million from $20.3 million. Results included the $8.3 million pre-tax gain on the Bearing equity-interest sale and the $7.1 million pre-tax loss on the securities portfolio restructuring. Adjusted net income was $22.9 million, an increase of $2.7 million, or 13.1 percent. The Corporation funded balance-sheet growth partly through additional FHLB advances, with total borrowings rising to $138.1 million at September 30, 2026 from $113.3 million at December 31, 2025.
Capital and liquidity metrics remained a focus. Liquid assets of $389.4 million plus borrowing availability of $641.7 million exceeded uninsured deposits excluding intercompany cash holdings and secured municipal deposits by $443.9 million. Total consolidated equity increased $7.0 million from December 31, 2025, although accumulated other comprehensive loss related to available-for-sale securities increased to $23.2 million. The Corporation declared a 48 cents per share quarterly cash dividend and repurchased 3 shares, or less than $1,000, under its 2026 Repurchase Program. The filing provided no quantitative forward guidance.
Management, verbatim
Our third quarter performance reflects the strength of our diversified business model and disciplined execution of our strategic priorities. Growth in community banking loans and a stronger net interest margin drove solid results. We also expanded into the Lynchburg, Virginia market with the opening of a loan production office. Credit quality remains good and consumer activity remains resilient despite inflation, elevated interest rates, and geopolitical uncertainty. We believe our strong financial position leaves us well positioned for the future.
Tom Cherry, President and Chief Executive Officer of C&F Financial Corporation
Not in the filing
stated, not guessed- Total revenue is not reported because the filing presents banking interest income and noninterest income rather than a total revenue line.
- Gross profit and gross margin are not reported.
- Operating income and operating margin are not reported.
- Cash flow from operations is not reported.
- Free cash flow is not reported.
- No quantitative forward guidance was provided.
- No prior outlook section was provided for comparison.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
C&F Financial Corp (NASDAQ:CFFI) filed a Form 8‑K reporting its third‑quarter 2026 results, including net income growth, loan portfolio changes, and a sale of a bearing equity interest.
Ticker impact
C&F Financial Corp reported Q3 2026 net income of $8.3M, up 16.1% YoY, and disclosed a pre‑tax gain of $8.3M from the sale of a Bearing equity interest.
likely modest upside as the market prices in the earnings beat and gain from the Bearing equity sale
The disclosed earnings beat and one‑time gain provide fresh, material information that can move the stock in the short term.
Market effects
Positive earnings may lift sentiment in the regional community banking sector.
Limited to U.S. regional banks and community lenders.
Minimal global impact.
Counterpoint
The one‑time gain may mask underlying credit quality concerns in the consumer finance segment.
Key entities
- companyC&F Financial Corp
Holding company for C&F Bank, ticker CFFI.
