NOTE 20: Business Segments

The Corporation operates in a decentralized fashion in three business segments: community banking, mortgage banking and consumer finance. The community banking segment comprises C&F Bank, C&F Wealth Management, C&F Insurance and CVB Title. Revenues from community banking operations consist primarily of net interest income related to investments in loans and securities and outstanding deposits and borrowings, fees earned on deposit accounts, debit card interchange activity, and net revenues from offering wealth management services through third-party service providers. Through C&F Mortgage, mortgage banking operating revenues consist principally of gains on sales of loans in the secondary market, mortgage banking fee income related to loan originations, fees earned by providing mortgage loan origination functions to third-party lenders, and net interest income on mortgage loans held for sale. Revenues from consumer finance operations through C&F Finance consist primarily of net interest income earned on purchased retail installment sales contracts.

The standalone Corporation’s revenues and expenses are comprised primarily of interest expense associated with the Corporation’s trust preferred capital notes and subordinated debt, general corporate expenses, and changes in the value of investments held in the rabbi trust and the deferred compensation liability related to its nonqualified deferred compensation

plan. The results of the Corporation, which includes funding and operating costs that are not allocated to the business segments, are included in the column labeled “Other” in the tables below.

The Corporation’s chief operating decision makers (CODMs) are the President/Chief Executive Officer and the Chief Financial Officer. The CODMs use net income to evaluate income generated from segment assets in deciding whether to reinvest profits into the segments or into other parts of the entity, such as for acquisitions or to pay dividends. Net income is used to monitor budget versus actual results. The CODMs also use net income in competitive analysis by benchmarking to the Corporation’s competitors. The competitive analysis along with the monitoring of budgeted versus actual results are used in assessing performance of the segments and in establishing management’s compensation.

Interest expense is allocated to the mortgage banking and consumer finance segments through borrowings from the community banking segment. The community banking segment extends two warehouse lines of credit to the mortgage banking segment, providing a portion of the funds needed to originate mortgage loans, that carry interest rates at the daily FHLB advance rate plus a spread ranging from 50 basis points to 175 basis points. The community banking segment also provides the consumer finance segment with a portion of the funds needed to purchase loan contracts by means of a variable rate line of credit that carries interest at one-month term SOFR plus 211.5 basis points, with a floor of 3.5 percent and a ceiling of 6.0 percent, and fixed rate notes that carry interest at rates ranging from 3.8 percent to 4.0 percent. The community banking segment acquires certain residential real estate loans from the mortgage banking segment at prices similar to those paid by third-party investors. These transactions are eliminated to reach consolidated totals. In addition to unallocated expenses recorded by the holding company, certain overhead costs are incurred by the community banking segment and are not allocated to the mortgage banking and consumer finance segments.

Year Ended December 31, 2025

 

Community

 

Mortgage

 

Consumer

 

(Dollars in thousands)

Banking

Finance

Other

Eliminations

Consolidated

Interest income

99,355

2,336

49,178

—

630

151,499

Interest expense

41,716

—

3,573

—

45,289

Net interest income before allocation

57,639

2,336

49,178

(3,573)

630

106,210

Net interest allocation¹

24,058

(1,027)

(23,031)

—

Net interest income

81,697

1,309

26,147

(3,573)

630

106,210

Gain on sales of loans

—

8,568

—

(589)

7,979

Other noninterest income

17,517

5,950

764

2,636

(215)

26,652

Net revenue

99,214

15,827

26,911

(937)

(174)

140,841

Provision for credit losses

(50)

—

11,600

—

11,550

Salaries and employee benefits

37,640

7,903

7,753

3,480

—

56,776

Occupancy expense

7,266

958

578

—

8,802

Data processing

9,432

1,233

1,257

—

11,962

Professional fees

2,681

172

570

276

—

3,699

Insurance expense

1,476

101

144

—

1,721

Marketing and advertising expenses

1,784

546

—

2,363

Loan processing and collection expenses

174

1,214

1,749

—

3,137

Provision for indemnifications

—

(190)

—

(190)

Other segment items²

5,292

803

1,576

339

(60)

7,950

Total noninterest expense

65,745

12,740

13,660

4,135

(60)

96,220

Income (loss) before taxes

33,519

3,087

1,651

(5,072)

(114)

33,071

Income tax expense (benefit)

6,288

780

422

(1,386)

(24)

6,080

Net income (loss)

27,231

2,307

1,229

(3,686)

(90)

26,991

Other data:

Capital expenditures

2,177

152

—

2,329

Depreciation and amortization

3,456

150

317

—

3,923

1	Interest expense is allocated to the mortgage banking and consumer finance segments through borrowings from the community banking segment.

2	Other segment items for each reportable segment include:

Community banking – licenses and other taxes expense, travel and education expense, telecommunications expense, other real estate owned losses and expense, net periodic pension cost, office supplies, and certain overhead expenses.

Mortgage banking – licenses and other taxes expense, travel and education expense, telecommunications expense, office supplies, and certain overhead expenses.

Consumer finance – licenses and taxes other expense, travel and education expense, telecommunications expense, payment processing expense, office supplies, and certain overhead expenses.


		Year Ended December 31, 2024
		Community			Mortgage			Consumer
(Dollars in thousands)		Banking			Banking			Finance			Other			Eliminations			Consolidated
Interest income		$	87,600		$	1,897		$	49,684		$	—		$	413		$	139,594
Interest expense			40,498			—			—			2,321			—			42,819
Net interest income before allocation			47,102			1,897			49,684			(2,321)			413			96,775
Net interest allocation¹			24,456			(796)			(23,660)			—			—			—
Net interest income			71,558			1,101			26,024			(2,321)			413			96,775
Gain on sales of loans			—			6,421			—			—			(357)			6,064
Other noninterest income			17,723			4,602			1,024			1,363			(238)			24,474
Net revenue			89,281			12,124			27,048			(958)			(182)			127,313

Provision for credit losses			1,650			—			11,600			—			—			13,250

Salaries and employee benefits			36,252			7,069			8,026			2,231			—			53,578
Occupancy expense			6,887			890			620			—			—			8,397
Data processing			8,927			1,012			1,328			47			—			11,314
Professional fees			2,834			103			312			362			—			3,611
Insurance expense			1,575			111			146			—			—			1,832
Marketing and advertising expenses			748			426			39			—			—			1,213
Loan processing and collection expenses			256			917			1,488			—			—			2,661
Provision for indemnifications			—			(460)			—			—			—			(460)
Other segment items²			5,395			528			1,577			350			(66)			7,784
Total noninterest expense			62,874			10,596			13,536			2,990			(66)			89,930

Income (loss) before taxes			24,757			1,528			1,912			(3,948)			(116)			24,133
Income tax expense (benefit)			4,473			420			498			(1,152)			(24)			4,215
Net income (loss)		$	20,284		$	1,108		$	1,414		$	(2,796)		$	(92)		$	19,918

Other data:
Capital expenditures			3,101			210			175			—			—			3,486
Depreciation and amortization			3,433			86			338			—			—			3,857

1	Interest expense is allocated to the mortgage banking and consumer finance segments through borrowings from the community banking segment.

2	Other segment items for each reportable segment include:

Community banking – licenses and other taxes expense, travel and education expense, telecommunications expense, other real estate owned losses expense, net periodic pension cost, office supplies, and certain overhead expenses.

Mortgage banking – licenses and other taxes expense, travel and education expense, telecommunications expense, office supplies, and certain overhead expenses.

Consumer finance – licenses and other taxes expense, travel and education expense, telecommunications expense, payment processing expense, office supplies, and certain overhead expenses.


		Year Ended December 31, 2023
		Community			Mortgage			Consumer
(Dollars in thousands)		Banking			Banking			Finance			Other			Eliminations			Consolidated
Interest income		$	74,949		$	1,695		$	47,264		$	—		$	229		$	124,137
Interest expense			24,184			—			—			2,246			—			26,430
Net interest income before allocation			50,765			1,695			47,264			(2,246)			229			97,707
Net interest allocation¹			23,438			(612)			(22,826)			—			—			—
Net interest income			74,203			1,083			24,438			(2,246)			229			97,707
Gain on sales of loans			—			5,845			—			—			(65)			5,780
Other noninterest income			16,465			4,353			962			2,257			(202)			23,835
Net revenue			90,668			11,281			25,400			11			(38)			127,322

Provision for credit losses			1,625			—			6,650			—			—			8,275

Salaries and employee benefits			36,004			6,996			8,732			3,144			—			54,876
Occupancy expense			6,354			1,005			634			—			—			7,993
Data processing			8,564			1,008			1,280			22			—			10,874
Professional fees			2,149			101			310			192			—			2,752
Insurance expense			1,396			128			135			—			—			1,659
Marketing and advertising expenses			1,075			428			45			—			—			1,548
Loan processing and collection expenses			248			1,047			2,022			—			—			3,317
Provision for indemnifications			—			(585)			—			—			—			(585)
Other segment items²			5,023			560			1,658			267			(59)			7,449
Total noninterest expense			60,813			10,688			14,816			3,625			(59)			89,883

Income (loss) before taxes			28,230			593			3,934			(3,614)			21			29,164
Income tax expense (benefit)			5,302			128			1,055			(1,066)			(1)			5,418
Net income (loss)		$	22,928		$	465		$	2,879		$	(2,548)		$	22		$	23,746

Other data:
Capital expenditures		$	1,301		$	12		$	146		$	—		$	—		$	1,459
Depreciation and amortization			3,402			79			398			—			—			3,879

1	Interest expense is allocated to the mortgage banking and consumer finance segments through borrowings from the community banking segment.

2	Other segment items for each reportable segment include:

Mortgage banking – licenses and other taxes expense, travel and education expense, telecommunications expense, office supplies, and certain overhead expenses.

Consumer finance – licenses and taxes other expense, travel and education expense, telecommunications expense, payment processing expense, office supplies, and certain overhead expenses.


	Community			Mortgage			Consumer
(Dollars in thousands)	Banking			Banking			Finance			Other			Eliminations			Consolidated
At December 31, 2025:
Total assets	$	2,651,694		$	51,275		$	469,942		$	31,218		$	(435,635)		$	2,768,494
Total loans held for investment, net		1,569,530			—			442,016			—			3,353			2,014,899
Total loans held for sale		—			44,286			—			—			(3,375)			40,911
Total deposits		2,359,650			—			—			—			(13,927)			2,345,723

At December 31, 2024:
Total assets	$	2,449,641		$	29,837		$	472,672		$	31,823		$	(420,599)		$	2,563,374
Total loans held for investment, net		1,434,446			—			444,085			—			1,780			1,880,311
Total loans held for sale		—			21,906			—			—			(1,794)			20,112
Total deposits		2,186,139			—			—			—			(15,279)			2,170,860

Historical Timeline

Fiscal Year	Filed
2025	Mar 3, 2026	Showing above
2024	Feb 27, 2025

2023	Feb 27, 2024

2022	Feb 28, 2023

2021	Mar 1, 2022

2020	Mar 3, 2021

2019	Mar 3, 2020

2018	Feb 26, 2019

2017	Mar 8, 2018

2016	Mar 7, 2017

2015	Mar 4, 2016

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

C & F FINANCIAL CORP Segments Disclosure

Historical Timeline

About Segments Disclosures

Other Available Disclosures