- Net Income for Q1 2025 increased to $5.4 million, a 58.5% rise year-over-year.
- Earnings per share climbed to $1.66, marking a 64.4% increase from the previous year.
- Community banking loans and deposits showed robust growth at 7.6% and 8.4% annualized, respectively.
C&F Financial Corporation (CFFI, Financial) has reported a significant increase in financial performance for the first quarter of 2025. Net income reached $5.4 million, a substantial increase from $3.4 million in Q1 2024. This growth was reflected in earnings per share, which rose to $1.66 from $1.01, representing a year-over-year increase of 64.4%.
The community banking segment experienced healthy expansion, with loans increasing by 7.6% annualized, contributing to a net interest margin improvement to 4.16%. Deposits also grew by 8.4% annualized. The mortgage banking segment showed resilience amidst high interest rates, with loan originations rising by 20.6% to $113.8 million compared to the first quarter of 2024.
Despite facing challenges in the consumer finance segment, where loans decreased by 4.0% annualized, C&F Financial maintained strong credit quality, with the allowance for credit losses stable at 1.18% of total loans. The company's strategy of reducing overhead and borrowing costs helped the segment return to profitability.
The bank's solid capital position is underscored by the 5% increase in its quarterly dividend to $0.46 per share, reflecting management's confidence in sustained performance. With net interest margin improvements and strategic efforts across business segments, C&F Financial is optimistic about its earnings outlook for the remainder of 2025.
