C & F FINANCIAL CORP

For the period ended Jun 30, 2026. Filed Aug 10, 2026.

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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.

Jun 30, 2026 · Filed Aug 10, 2026

CFFI$107.70+2.5%Stored close · as of Nov 9, 2026

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Contents

Notes to Consolidated Interim Financial Statements (Unaudited)

NOTE****S TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

(Unaudited)

NOTE 1: Summary of Significant Accounting Policies

Principles of Consolidation: The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial reporting and with applicable quarterly reporting regulations of the Securities and Exchange Commission (the SEC). They do not include all of the information and notes required by GAAP for complete financial statements. Therefore, these consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the C&F Financial Corporation Annual Report on Form 10-K for the year ended December 31, 2025 (2025 Annual Report). The accounting and reporting policies of the Corporation conform to GAAP and to predominant practices within the banking industry and are primarily disclosed in the 2025 Annual Report.

The unaudited consolidated financial statements include the accounts of C&F Financial Corporation (the Corporation), its direct wholly-owned subsidiary, Citizens and Farmers Bank (the Bank or C&F Bank), and indirect subsidiaries that are wholly-owned or controlled. Subsidiaries that are less than wholly owned are fully consolidated if they are controlled by the Corporation or one of its subsidiaries, and the portion of any subsidiary not owned by the Corporation is reported as noncontrolling interest. All significant intercompany accounts and transactions have been eliminated in consolidation. In addition, the Corporation owns all of the common stock of C&F Financial Statutory Trust I, C&F Financial Statutory Trust II, and Central Virginia Bankshares Statutory Trust I, all of which are unconsolidated subsidiaries. The subordinated debt owed to these trusts is reported as liabilities of the Corporation.

Nature of Operations: The Corporation is a bank holding company incorporated under the laws of the Commonwealth of Virginia. The Corporation owns all of the stock of its subsidiary, C&F Bank, which is an independent commercial bank chartered under the laws of the Commonwealth of Virginia.

C&F Bank hasfive wholly-owned subsidiaries: C&F Mortgage Corporation (C&F Mortgage), C&F Finance Company (C&F Finance), C&F Wealth Management Corporation (C&F Wealth Management), C&F Insurance Services, LLC (C&F Insurance), and CVB Title Services, Inc. (CVB Title), all incorporated or organized under the laws of the Commonwealth of Virginia. C&F Mortgage, organized in September 1995, originates and sells residential mortgages, provides mortgage loan origination services to third-party lenders and, through its subsidiary Certified Appraisals, LLC, provides ancillary mortgage loan production services for residential appraisals. C&F Mortgage owns a 51 percent interest in C&F Select, LLC, which was organized in January 2019 and is also engaged in the business of originating and selling residential mortgages. C&F Finance, acquired in September 2002, is a finance company purchasing automobile loans through indirect lending programs. C&F Wealth Management, organized in April 1995, is a full-service brokerage firm offering a comprehensive range of wealth management services through third-party service providers. C&F Insurance and CVB Title were organized for the primary purpose of owning equity interests in an independent insurance agency and a full service title and settlement agency, respectively. Business segment data is presented in Note 11.

Basis of Presentation: The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for credit losses. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, which are necessary for a fair presentation of the results of operations in these financial statements, have been made. The results of operations for the three and six months ended June 30, 2026 are not necessarily indicative of the results to be expected for any other interim period or for the full year.

Reclassification: Certain reclassifications have been made to the prior period financial statements to conform to the current period presentation. None of these reclassifications are considered material.

**Recent Significant Accounting Pronouncements:**In November 2024, the Financial Accounting Standards Board (FASB) issued ASU 2024-03, “Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures.” The amendments in ASU 2024-03 require disaggregated disclosure of income statement expenses for public business entities. Such disclosures must be made on an annual and interim basis in a tabular format in the footnotes to the financial statements. The amendments require companies to disclose disaggregated information about specific natural expense categories that are considered relevant and applicable, including (1) purchases of inventory, (2) employee compensation, (3) depreciation, (4) intangible asset amortization, and (5) oil and gas activities. The amendments also provide clarification regarding identifying relevant expenses captions and requires disclosure of selling expenses on an annual and interim basis. Entities are required to apply the guidance in ASU 2024-03 consistently for all periods presented and is effective for all public business entities for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted. The amendments are to be applied on a prospective basis; however, retrospective application is permitted. The Corporation does not expect the adoption of ASU 2024-03 to have a material effect on its consolidated financial statements.

Other accounting standards that have been issued by the FASB or other standards-setting bodies are not currently expected to have a material effect on the Corporation’s financial position, results of operations or cash flows.

NOTE 2: Securities

The Corporation’s debt securities, all of which are classified as available for sale, are summarized in the following tables. The Corporation has elected to exclude accrued interest receivable, totaling $2.68 million and $2.67 million at June 30, 2026 and December 31, 2025, respectively, from the amortized cost basis of securities.


· · June 30, 2026
· · · · · Gross · · Gross · · ·
· · Amortized · · Unrealized · · Unrealized · ·
(Dollars in thousands) · · Cost · · Gains · · Losses · · Fair Value
U.S. Treasury securities	$4,997	$—	$(63)	$4,934
U.S. government agencies and corporations	25,270	—	(1,412)	23,858
Mortgage-backed securities	249,519	843	(6,632)	243,730
Obligations of states and political subdivisions	153,509	1,656	(1,947)	153,218
Corporate and other debt securities	33,388	180	(1,056)	32,512
Total	$466,683	$2,679	$(11,110)	$458,252


· · December 31, 2025
· · · · · Gross · · Gross · · ·
· · Amortized · · Unrealized · · Unrealized · ·
(Dollars in thousands) · · Cost · · Gains · · Losses · · Fair Value
U.S. Treasury securities	$4,992	$—	$(105)	$4,887
U.S. government agencies and corporations	60,605	—	(4,895)	55,710
Mortgage-backed securities	211,653	2,009	(7,830)	205,832
Obligations of states and political subdivisions	158,158	1,417	(2,484)	157,091
Corporate and other debt securities	35,628	150	(1,187)	34,591
Total	$471,036	$3,576	$(16,501)	$458,111

The amortized cost and estimated fair value of securities at June 30, 2026, by the earlier of contractual maturity or expected maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to prepay obligations with or without call or prepayment penalties.

· · · · · ·
· · June 30, 2026
	Amortized
(Dollars in thousands)	Cost	Fair Value
Due in one year or less	$81,668	$79,912
Due after one year through five years	173,996	169,229
Due after five years through ten years	145,830	144,577
Due after ten years	65,189	64,534
Total	$466,683	$458,252

The following table presents the gross realized gains and losses on and the proceeds from the sales, maturities and calls of securities. During the three and six months ended June 30, 2026, the Corporation received $69.2 million of proceeds related to sales of securities with a book value of $76.3 million, resulting in a pre-tax loss of $7.1 million. There wereno sales of securities during the three and six months ended June 30, 2025.

· · · · · · · · · · · ·
· · Three Months Ended June 30, · · Six Months Ended June 30,
(Dollars in thousands)	2026	2025	2026	2025
Realized gains from sales, maturities and calls of securities: · · · · · · · · · · · ·
Gross realized gains	$—	$—	$—	$—
Gross realized losses	(7,129)	—	(7,129)	—
Net realized losses	$(7,129)	$—	$(7,129)	$—
Proceeds from sales, maturities, calls and paydowns of securities	$86,629	$14,157	$101,219	$31,333

The Corporation pledges securities primarily to secure municipal deposits and lines of credit that provide liquidity to the Corporation and C&F Bank. Securities with an aggregate amortized cost of $120.85 million and an aggregate fair value of $118.50 million were pledged at June 30, 2026. Securities with an aggregate amortized cost of $138.43 million and an aggregate fair value of $130.88 million were pledged at December 31, 2025.

Securities in an unrealized loss position at June 30, 2026, by duration of the period of the unrealized loss, are shown below.


· · Less Than 12 Months · · 12 Months or More · · Total
· Fair · Unrealized · Fair · Unrealized · Fair · Unrealized
(Dollars in thousands) · · Value · · Loss · · Value · · Loss · · Value · · Loss
U.S. Treasury securities	$—	$—	$4,934	$63	$4,934	$63
U.S. government agencies and corporations	—	—	23,858	1,412	23,858	1,412
Mortgage-backed securities	119,889	1,339	62,989	5,293	182,878	6,632
Obligations of states and political subdivisions	25,683	267	28,662	1,680	54,345	1,947
Corporate and other debt securities	13,076	131	12,825	925	25,901	1,056
Total	$158,648	$1,737	$133,268	$9,373	$291,916	$11,110

There were 336 debt securities with a fair value below the amortized cost basis, totaling $291.92 million of aggregate fair value as of June 30, 2026. The Corporation concluded that a credit loss did not exist in its securities portfolio at June 30, 2026, andno allowance for credit losses has been recognized based on the fact that as of June 30, 2026 (1) changes in fair value were caused primarily by fluctuations in interest rates or other market factors, such as changes in demand, (2) securities with unrealized losses had generally high credit quality, (3) the Corporation intends to hold these investments in debt securities to maturity and it is more-likely-than-not that the Corporation will not be required to sell these investments before a recovery of its investment, and (4) issuers have continued to make timely payments of principal and interest. Additionally, the Corporation’s mortgage-backed securities are entirely issued by either U.S. government agencies or U.S.

government-sponsored enterprises. Collectively, these entities provide a guarantee, which is either explicitly or implicitly supported by the full faith and credit of the U.S. government, that investors in such mortgage-backed securities will receive timely principal and interest payments.

Securities in an unrealized loss position at December 31, 2025, by duration of the period of the unrealized loss, are shown below.


· · Less Than 12 Months · · 12 Months or More · · Total
· Fair · Unrealized · Fair · Unrealized · Fair · Unrealized
(Dollars in thousands) · · Value · · Loss · · Value · · Loss · · Value · · Loss
U.S. Treasury securities	$—	$—	$4,887	$105	$4,887	$105
U.S. government agencies and corporations	—	—	55,710	4,895	55,710	4,895
Mortgage-backed securities	12,949	84	107,826	7,746	120,775	7,830
Obligations of states and political subdivisions	7,451	79	64,534	2,405	71,985	2,484
Corporate and other debt securities	13,009	119	15,932	1,068	28,941	1,187
Total	$33,409	$282	$248,889	$16,219	$282,298	$16,501

The Corporation’s investment in restricted stock totaled $4.06 million at June 30, 2026 and $3.68 million at December 31, 2025 and consisted of Federal Home Loan Bank of Atlanta (FHLB) stock. Restricted stock is generally viewed as a long-term investment, which is carried at cost because there is no market for the stock other than to be redeemed or repurchased by the FHLB. Therefore, when evaluating restricted stock for impairment, its value is based on the ultimate recoverability of the par value rather than by recognizing any temporary decline in value. The Corporation did not consider its investment in restricted stock to be impaired at June 30, 2026 andno impairment has been recognized.

NOTE 3: Loans

The Corporation’s loans are stated at their face amount, net of deferred fees and costs and discounts, and consist of the classes of loans included in the following table. The Corporation has elected to exclude accrued interest receivable, totaling $9.08 million and $9.04 million at June 30, 2026 and December 31, 2025, respectively, from the recorded balance of loans.


· · June 30, · · December 31,
(Dollars in thousands) · · 2026 · · 2025
Commercial real estate	$919,472	$835,432
Commercial business	125,231	115,710
Construction - commercial real estate	40,851	99,604
Land acquisition and development	87,096	66,248
Builder lines	32,576	37,938
Construction - consumer real estate	32,015	29,288
Residential mortgage	325,799	319,536
Equity lines	82,495	76,460
Other consumer	10,657	10,085
Consumer finance - automobiles	404,918	406,312
Consumer finance - marine and recreational vehicles	51,679	57,963
Subtotal	2,112,789	2,054,576
Less allowance for credit losses	(39,675)	(39,677)
Loans, net	$2,073,114	$2,014,899

Other consumer loans included $259,000 and $240,000 of demand deposit overdrafts at June 30, 2026 and December 31, 2025, respectively.

The following table shows the aging of the Corporation’s loan portfolio, by class, at June 30, 2026.


	30-59		60-89	90+								90+ Days
	Days		Days	Days	Total						Past Due and
(Dollars in thousands)	Past Due		Past Due	Past Due	Past Due		Current1	Total Loans	Accruing
Commercial real estate		$—		$—		$—		$—		$919,472			$919,472	$—
Commercial business		57		—		—		57		125,174			125,231	—
Construction - commercial real estate		—		—		—		—		40,851			40,851	—
Land acquisition and development		—		—		—		—		87,096			87,096	—
Builder lines		—		—		—		—		32,576			32,576	—
Construction - consumer real estate		—		—		—		—		32,015			32,015	—
Residential mortgage		677		101		1,102		1,880		323,919			325,799	142
Equity lines		125		41		75		241		82,254			82,495	75
Other consumer		78		41		12		131		10,526			10,657	—
Consumer finance - automobiles		13,263		1,983		645		15,891		389,027			404,918	—
Consumer finance - marine and recreational vehicles		343		—		—		343		51,336			51,679	—
Total		$14,543		$2,166		$1,834		$18,543		$2,094,246			$2,112,789	$217

1	For the purposes of the table above, “Current” includes loans that are 1-29 days past due.

The table above includes nonaccrual loans that are current of $74,000, 30-59 days past due of $10,000, 60-89 days past due of $117,000 and 90+ days past due of $1.62 million.

The following table shows the aging of the Corporation’s loan portfolio, by class, at December 31, 2025.


	30-59		60-89	90+								90+ Days
	Days		Days	Days	Total						Past Due and
(Dollars in thousands)	Past Due		Past Due	Past Due	Past Due		Current1	Total Loans	Accruing
Commercial real estate		$—		$262		$—		$262		$835,170			$835,432	$—
Commercial business		8		—		—		8		115,702			115,710	—
Construction - commercial real estate		—		—		—		—		99,604			99,604	—
Land acquisition and development		—		—		—		—		66,248			66,248	—
Builder lines		—		—		—		—		37,938			37,938	—
Construction - consumer real estate		—		—		—		—		29,288			29,288	—
Residential mortgage		1,019		111		813		1,943		317,593			319,536	—
Equity lines		155		65		23		243		76,217			76,460	23
Other consumer		17		—		—		17		10,068			10,085	—
Consumer finance - automobiles		16,741		2,129		1,022		19,892		386,420			406,312	—
Consumer finance - marine and recreational vehicles		429		37		—		466		57,497			57,963	—
Total		$18,369		$2,604		$1,858		$22,831		$2,031,745			$2,054,576	$23

1 For the purposes of the table above, “Current” includes loans that are 1-29 days past due.

The table above includes nonaccrual loans that are current of $219,000, 30-59 days past due of $17,000, 60-89 days past due of $86,000 and 90+ days past due of $1.84 million.

The following table shows the Corporation’s recorded balance of loans on nonaccrual status as of June 30, 2026 and December 31, 2025. The Corporation recognized $12,000 and $25,000 in interest income for the three and six months ended June 30, 2026 on loans on nonaccrual status as of June 30, 2026 and had $9,000 reversals of interest income upon placing loans on nonaccrual status during both of the three and six months ended June 30, 2026. All nonaccrual loans at June 30, 2026 and December 31, 2025 had an allowance for credit losses, with none individually evaluated.


· · June 30, · · December 31,
(Dollars in thousands) · · 2026 · · 2025
Residential mortgage	$1,111	$1,135
Other consumer	62	—
Consumer finance - automobiles	645	1,022
Total	$1,818	$2,157

Occasionally, the Corporation modifies loans to borrowers experiencing financial difficulties by providing principal forgiveness, term extensions, interest rate reductions or other-than-insignificant payment delays. As the effect of most modifications is already included in the allowance for credit losses due to the measurement methodologies used in its estimate, the allowance for credit losses is typically not adjusted upon modification. When principal forgiveness is provided at modification, the amount forgiven is charged against the allowance for credit losses. In some cases, the Corporation may provide multiple types of modifications on one loan and when multiple types of modifications occur within the same period, the combination of modifications is separately reported.

The following tables present the amortized cost basis of loans as of June 30, 2026 and 2025 that were both experiencing financial difficulty and modified during the three and six months ended June 30, 2026 and 2025.


· · Three Months Ended June 30, 2026 · · · · Six Months Ended June 30, 2026 ·
· · · % of Total · · · · · % of Total ·
· · Amortized · Class of · · · · Amortized · Class of ·
(Dollars in thousands) · · Cost · Loans · · · · Cost · Loans ·
Term Extension
Builder lines	$69	0.2%	$69	0.2%
Total Term Extension	$69	0.2%	$69	0.2%
Combination Term Extension and Interest Rate Reduction
Residential mortgage	$114	0.0%	$114	0.0%
Total Combination Term Extension and Interest Rate Reduction	$114	0.0%	$114	0.0%

Total	$183	0.0%	$183	0.0%


· · Three Months Ended June 30, 2025 · · · · Six Months Ended June 30, 2025 ·
· · · % of Total · · · · · % of Total ·
· · Amortized · Class of · · · · Amortized · Class of ·
(Dollars in thousands) · · Cost · Loans · · · · Cost · Loans ·
Term Extension
Commercial real estate	$3,554	0.5%	$3,554	0.5%
Total Term Extension	$3,554		$3,554

Total	$3,554	0.2%	$3,554	0.2%

The following tables present the financial effects of the loan modifications presented above to borrowers experiencing financial difficulty for the three and six months ended June 30, 2026 and 2025.


· · Three Months Ended June 30, 2026 · · Six Months Ended June 30, 2026
· · Weighted- · · Weighted- · · Weighted- · · Weighted-
· · Average · · Average · · Average · · Average
· · Interest · · Term · · Interest · · Term
· · Rate · · Extension · · Rate · · Extension
· · Reduction · · (in years) · · Reduction · · (in years)
Builder lines	—%	0.3	—%	0.3
Residential mortgage	1.13	2.0	1.13	2.0
Total	1.13%	1.3	1.13%	1.3

· · · · · · · · · · · ·
· · Three Months Ended June 30, 2025 · · Six Months Ended June 30, 2025
· · Weighted- · · Weighted- · · Weighted- · · Weighted-
· · Average · · Average · · Average · · Average
· · Interest · · Term · · Interest · · Term
· · Rate · · Extension · · Rate · · Extension
· · Reduction · · (in years) · · Reduction · · (in years)
Commercial real estate	—%	1.1	—%	1.1
Total	—%	1.1	—%	1.1

The Corporation closely monitors the performance of modified loans to understand the effectiveness of its modification efforts. Upon the determination that all or a portion of a modified loan is uncollectible, that amount is charged against the allowance for credit losses. There wereno payment defaults during the three and six months ended June 30, 2026 and 2025 of loans to borrowers experiencing financial difficulties that were modified during the previous twelve months and all were current as of June 30, 2026.

NOTE 4: Allowance for Credit Losses

The Corporation conducts an analysis of the collectability of the loan portfolio on a regular basis and uses this analysis to assess the sufficiency of the allowance for credit losses on loans and to determine the necessary provision for credit losses. The Corporation segmented the loan portfolio into three loan portfolios based on common risk characteristics. The Commercial portfolio consists of commercial real estate loans, commercial business loans, commercial and consumer real estate construction loans, land acquisition and development loans, and builder lines. The Consumer portfolio consists of residential mortgage loans, equity lines, and other consumer loans. The Consumer Finance portfolio consists of automobile and marine and recreational vehicle (RV) loans.

The following table shows the allowance for credit losses activity by loan portfolio for the six months ended June 30, 2026 and 2025.


· · · · · · · Consumer · · ·
(Dollars in thousands) · · Commercial · · Consumer · · Finance · · Total
Balance at December 31, 2025	$13,239	$4,179	$22,259	$39,677
Provision charged to operations	247	53	5,800	6,100
Loans charged off	(101)	(101)	(8,493)	(8,695)
Recoveries of loans previously charged off	35	61	2,497	2,593
Balance at June 30, 2026	$13,420	$4,192	$22,063	$39,675


· · · · · · · Consumer · · ·
(Dollars in thousands) · · Commercial · · Consumer · · Finance · · Total
Balance at December 31, 2024	$13,347	$4,032	$22,708	$40,087
Provision charged to operations	(324)	174	5,300	5,150
Loans charged off	(20)	(116)	(7,719)	(7,855)
Recoveries of loans previously charged off	23	77	2,096	2,196
Balance at June 30, 2025	$13,026	$4,167	$22,385	$39,578

The following table presents a breakdown of the provision for credit losses for the periods indicated.

· · · · · · · · · · · ·
· · Three Months Ended June 30, · · Six Months Ended June 30,
(Dollars in thousands)	2026	2025	2026	2025
Provision for credit losses: · · · · · · · · · · · ·
Provision for loans	$2,650	$2,100	$6,100	$5,150
Provision for unfunded commitments	—	—	150	(50)
Total	$2,650	$2,100	$6,250	$5,100

The following table details the recorded balance of the classes of loans within the commercial and consumer loan portfolios by loan rating, which is reviewed on a quarterly basis, and year of origination as of June 30, 2026:


· · · · · · · · · · · · · · · · · · · · Revolving · · Revolving · ·
· · Term Loans Recorded Balance by Origination Year · · Loans · · Loans · ·
· · · · · · · · · · · · · · · · · · · · Recorded · · Converted · ·
(Dollars in thousands) · · 2026 · · 2025 · · 2024 · · 2023 · · 2022 · · Prior · · Balance · · to Term1 · · Total
Commercial real estate:
Loan Rating
Pass	$63,921	$72,316	$132,094	$144,995	$162,386	$343,442	$—	$249	$919,403
Special Mention	—	—	—	—	—	69	—	—	69
Total	$63,921	$72,316	$132,094	$144,995	$162,386	$343,511	$—	$249	$919,472

Commercial business:
Loan Rating
Pass	$16,750	$7,884	$7,048	$8,415	$12,562	$33,752	$38,663	$54	$125,128
Special Mention	—	—	—	—	—	103	—	—	103
Total	$16,750	$7,884	$7,048	$8,415	$12,562	$33,855	$38,663	$54	$125,231

Construction - commercial real estate:
Loan Rating
Pass	$4,578	$8,696	$27,192	$385	$—	$—	$—	$—	$40,851
Total	$4,578	$8,696	$27,192	$385	$—	$—	$—	$—	$40,851

Land acquisition and development:
Loan Rating
Pass	$15,051	$25,884	$42,179	$—	$—	$3,982	$—	$—	$87,096
Total	$15,051	$25,884	$42,179	$—	$—	$3,982	$—	$—	$87,096

Builder lines:
Loan Rating
Pass	$13,738	$13,517	$4,505	$266	$550	$—	$—	$—	$32,576
Total	$13,738	$13,517	$4,505	$266	$550	$—	$—	$—	$32,576

Construction - consumer real estate:
Loan Rating
Pass	$7,310	$21,392	$3,313	$—	$—	$—	$—	$—	$32,015
Total	$7,310	$21,392	$3,313	$—	$—	$—	$—	$—	$32,015

Residential mortgage:
Loan Rating
Pass	$29,605	$46,835	$53,209	$39,791	$65,537	$89,177	$—	$—	$324,154
Special Mention	114	—	—	21	170	170	—	—	475
Substandard	—	—	—	—	—	59	—	—	59
Substandard Nonaccrual	—	—	161	800	74	76	—	—	1,111
Total	$29,719	$46,835	$53,370	$40,612	$65,781	$89,482	$—	$—	$325,799

Equity lines:
Loan Rating
Pass	$—	$—	$—	$—	$—	$460	$80,768	$1,225	$82,453
Special Mention	—	—	—	—	—	—	—	42	42
Total	$—	$—	$—	$—	$—	$460	$80,768	$1,267	$82,495

Other consumer:
Loan Rating
Pass	$3,427	$3,588	$1,851	$929	$473	$254	$42	$—	$10,564
Special Mention	31	—	—	—	—	—	—	—	31
Substandard Nonaccrual	9	41	—	—	12	—	—	—	62
Total	$3,467	$3,629	$1,851	$929	$485	$254	$42	$—	$10,657

Total:
Loan Rating
Pass	$154,380	$200,112	$271,391	$194,781	$241,508	$471,067	$119,473	$1,528	$1,654,240
Special Mention	145	—	—	21	170	342	—	42	720
Substandard	—	—	—	—	—	59	—	—	59
Substandard Nonaccrual	9	41	161	800	86	76	—	—	1,173
Total	$154,534	$200,153	$271,552	$195,602	$241,764	$471,544	$119,473	$1,570	$1,656,192

Commercial business includes $0 and $18,000 of revolving loans converted to term during the three and six months ended June 30, 2026, respectively. Commercial real estate includes $126,000 of revolving loans converted to term during both the three and six months ended June 30, 2026. Equity lines include $387,000 and $554,000 of revolving loans converted to term during the three and six months ended June 30, 2026, respectively.


· · · · · · · · · · · · · · · · · · · · Revolving · · Revolving · ·
· · Term Loans Recorded Balance by Origination Year · · Loans · · Loans · ·
· · · · · · · · · · · · · · · · · · · · Recorded · · Converted · ·
(Dollars in thousands) · · 2025 · · 2024 · · 2023 · · 2022 · · 2021 · · Prior · · Balance · · to Term1 · · Total
Commercial real estate:
Loan Rating
Pass	$72,184	$110,069	$120,853	$162,934	$120,074	$249,017	$—	$229	$835,360
Special Mention	—	—	—	—	—	72	—	—	72
Total	$72,184	$110,069	$120,853	$162,934	$120,074	$249,089	$—	$229	$835,432

Commercial business:
Loan Rating
Pass	$9,557	$7,623	$10,169	$13,091	$11,841	$26,507	$36,875	$47	$115,710
Total	$9,557	$7,623	$10,169	$13,091	$11,841	$26,507	$36,875	$47	$115,710

Construction - commercial real estate:
Loan Rating
Pass	$10,384	$54,141	$31,892	$3,187	$—	$—	$—	$—	$99,604
Total	$10,384	$54,141	$31,892	$3,187	$—	$—	$—	$—	$99,604

Land acquisition and development:
Loan Rating
Pass	$18,966	$41,178	$—	$371	$—	$5,733	$—	$—	$66,248
Total	$18,966	$41,178	$—	$371	$—	$5,733	$—	$—	$66,248

Builder lines:
Loan Rating
Pass	$27,069	$8,855	$826	$784	$—	$404	$—	$—	$37,938
Total	$27,069	$8,855	$826	$784	$—	$404	$—	$—	$37,938

Construction - consumer real estate:
Loan Rating
Pass	$24,158	$5,130	$—	$—	$—	$—	$—	$—	$29,288
Total	$24,158	$5,130	$—	$—	$—	$—	$—	$—	$29,288

Residential mortgage:
Loan Rating
Pass	$44,390	$57,382	$46,606	$71,350	$33,087	$64,871	$—	$—	$317,686
Special Mention	—	—	22	84	202	347	—	—	655
Substandard	—	—	—	—	—	60	—	—	60
Substandard Nonaccrual	—	113	833	189	—	—	—	—	1,135
Total	$44,390	$57,495	$47,461	$71,623	$33,289	$65,278	$—	$—	$319,536

Equity lines:
Loan Rating
Pass	$—	$—	$—	$—	$—	$493	$75,165	$701	$76,359
Special Mention	—	—	—	—	—	—	—	101	101
Total	$—	$—	$—	$—	$—	$493	$75,165	$802	$76,460

Other consumer:
Loan Rating
Pass	$5,157	$2,512	$1,318	$670	$82	$300	$46	$—	$10,085
Total	$5,157	$2,512	$1,318	$670	$82	$300	$46	$—	$10,085

Total:
Loan Rating
Pass	$211,865	$286,890	$211,664	$252,387	$165,084	$347,325	$112,086	$977	$1,588,278
Special Mention	—	—	22	84	202	419	—	101	828
Substandard	—	—	—	—	—	60	—	—	60
Substandard Nonaccrual	—	113	833	189	—	—	—	—	1,135
Total	$211,865	$287,003	$212,519	$252,660	$165,286	$347,804	$112,086	$1,078	$1,590,301

1	Commercial real estate and equity lines include $128,000 and $516,000, respectively, of revolving loans converted to term during the year ended December 31, 2025.

The following table details the recorded balance of the classes of loans within the consumer finance loan portfolio by credit rating at the time of origination and year of origination as of June 30, 2026:


· · · · · · · · · · · · · · · · · · · · · · Revolving · ·
· · Term Loans Recorded Balance by Origination Year · · · · Loans · ·
· · · · · · · · · · · · · · · · · · · · Revolving · · Converted · ·
(Dollars in thousands) · · 2026 · · 2025 · · 2024 · · 2023 · · 2022 · · Prior · · Loans · · to Term · · Total
Consumer finance - automobiles:
Credit rating1
Very good	$13,914	$18,108	$11,380	$4,682	$3,102	$726	$—	$—	$51,912
Good	26,906	39,605	23,013	13,014	13,101	3,259	—	—	118,898
Fairly good	25,859	41,949	24,388	18,251	16,906	6,557	—	—	133,910
Fair	13,580	26,124	15,460	10,884	10,165	5,379	—	—	81,592
Marginal	2,576	6,200	3,056	2,138	2,364	2,272	—	—	18,606
Total	$82,835	$131,986	$77,297	$48,969	$45,638	$18,193	$—	$—	$404,918

Consumer finance - marine and recreational vehicles:
Credit rating1
Very good	$—	$1,166	$5,540	$4,510	$9,778	$13,130	$—	$—	$34,124
Good	—	1,296	3,392	5,219	5,057	2,224	—	—	17,188
Fairly good	—	—	—	132	168	67	—	—	367
Total	$—	$2,462	$8,932	$9,861	$15,003	$15,421	$—	$—	$51,679

Total:
Credit rating1
Very good	$13,914	$19,274	$16,920	$9,192	$12,880	$13,856	$—	$—	$86,036
Good	26,906	40,901	26,405	18,233	18,158	5,483	—	—	136,086
Fairly good	25,859	41,949	24,388	18,383	17,074	6,624	—	—	134,277
Fair	13,580	26,124	15,460	10,884	10,165	5,379	—	—	81,592
Marginal	2,576	6,200	3,056	2,138	2,364	2,272	—	—	18,606
Total	$82,835	$134,448	$86,229	$58,830	$60,641	$33,614	$—	$—	$456,597

1	Credit ratings with a FICO score greater than 739 are considered Very Good, FICO scores ranging from 670-739 are considered Good, FICO scores ranging from 625-669 are considered Fairly Good, FICO scores ranging from 580-624 are considered Fair and FICO scores less than 580 are considered Marginal.


· · · · · · · · · · · · · · · · · · · · · · Revolving · ·
· · Term Loans Recorded Balance by Origination Year · · · · Loans · ·
· · · · · · · · · · · · · · · · · · · · Revolving · · Converted · ·
(Dollars in thousands) · · 2025 · · 2024 · · 2023 · · 2022 · · 2021 · · Prior · · Loans · · to Term · · Total
Consumer finance - automobiles:
Credit rating1
Very good	$22,600	$14,758	$6,212	$4,543	$1,123	$111	$—	$—	$49,347
Good	46,079	28,573	17,066	17,449	4,853	519	—	—	114,539
Fairly good	48,871	29,704	23,209	23,345	9,043	1,397	—	—	135,569
Fair	29,774	18,942	14,528	14,266	7,011	1,815	—	—	86,336
Marginal	6,960	3,751	2,893	3,243	2,626	1,048	—	—	20,521
Total	$154,284	$95,728	$63,908	$62,846	$24,656	$4,890	$—	$—	$406,312

Consumer finance - marine and recreational vehicles:
Credit rating1
Very good	$1,339	$6,231	$4,999	$10,700	$6,473	$8,789	$—	$—	$38,531
Good	1,442	3,937	5,533	5,604	1,066	1,441	—	—	19,023
Fairly good	—	—	165	173	32	39	—	—	409
Total	$2,781	$10,168	$10,697	$16,477	$7,571	$10,269	$—	$—	$57,963

Total:
Credit rating1
Very good	$23,939	$20,989	$11,211	$15,243	$7,596	$8,900	$—	$—	$87,878
Good	47,521	32,510	22,599	23,053	5,919	1,960	—	—	133,562
Fairly good	48,871	29,704	23,374	23,518	9,075	1,436	—	—	135,978
Fair	29,774	18,942	14,528	14,266	7,011	1,815	—	—	86,336
Marginal	6,960	3,751	2,893	3,243	2,626	1,048	—	—	20,521
Total	$157,065	$105,896	$74,605	$79,323	$32,227	$15,159	$—	$—	$464,275

1	Credit ratings with a FICO score greater than 739 are considered Very Good, FICO scores ranging from 670-739 are considered Good, FICO scores ranging from 625-669 are considered Fairly Good, FICO scores ranging from 580-624 are considered Fair and FICO scores less than 580 are considered Marginal.

The following table details the current period gross charge-offs of loans by year of origination for the six months ended June 30, 2026.


· · · · · · · · · · · · · · · · · · · · · · Revolving · ·
· · Current Period Gross Charge-offs by Origination Year · · · · Loans · ·
· · · · · · · · · · · · · · · · · · · · Revolving · · Converted · ·
(Dollars in thousands) · · 2026 · · 2025 · · 2024 · · 2023 · · 2022 · · Prior · · Loans · · to Term · · Total
Commercial business	$—	$99	$—	$—	$—	$2	$—	$—	$101
Equity lines	—	—	—	5	—	6	—	—	11
Other consumer1	78	5	7	—	—	—	—	—	90
Consumer finance - automobiles	33	1,292	1,663	2,244	2,170	831	—	—	8,233
Consumer finance - marine and recreational vehicles	—	—	95	58	95	12	—	—	260
Total	$111	$1,396	$1,765	$2,307	$2,265	$851	$—	$—	$8,695

1	Gross charge-offs of other consumer loans for the six months ended June 30, 2026 included $78,000 of demand deposit overdrafts that originated in 2026.

The following table details the current period gross charge-offs of loans by year of origination for the six months ended June 30, 2025.


· · · · · · · · · · · · · · · · · · · · · · Revolving · ·
· · Current Period Gross Charge-offs by Origination Year · · · · Loans · ·
· · · · · · · · · · · · · · · · · · · · Revolving · · Converted · ·
(Dollars in thousands) · · 2025 · · 2024 · · 2023 · · 2022 · · 2021 · · Prior · · Loans · · to Term · · Total
Commercial business	$—	$—	$—	$—	$10	$10	$—	$—	$20
Residential mortgage	6	—	—	—	—	—	—	—	6
Other consumer1	96	10	4	—	—	—	—	—	110
Consumer finance - automobiles	71	1,238	1,968	2,777	1,062	350	—	—	7,466
Consumer finance - marine and recreational vehicles	—	56	13	152	10	22	—	—	253
Total	$173	$1,304	$1,985	$2,929	$1,082	$382	$—	$—	$7,855

1	Gross charge-offs of other consumer loans for the six months ended June 30, 2025 included $96,000 of demand deposit overdrafts that originated in 2025.

As of June 30, 2026 and December 31, 2025, the Corporation hadno collateral dependent loans for which repayment was expected to be derived substantially through the operation or sale of the collateral and where the borrower is experiencing financial difficulty.

NOTE 5: Goodwill and Other Intangible Assets

The carrying amount of goodwill was $25.19 million at June 30, 2026 and December 31, 2025. There wereno changes in the recorded balance of goodwill during the three and six months ended June 30, 2026 or 2025.

The Corporation had $859,000 and $909,000 of other intangible assets as of June 30, 2026 and December 31, 2025, respectively. Other intangible assets were recognized in connection with the core deposits acquired from Peoples Bankshares, Incorporated in 2020 and customer relationships acquired by C&F Wealth Management in 2016.

The following table summarizes the gross carrying amounts and accumulated amortization of other intangible assets.


· · · June 30, · · · December 31,
· · · 2026 · · · 2025
· · · Gross · · · · · Gross · · ·
· · · Carrying · · Accumulated · · · Carrying · · Accumulated
(Dollars in thousands) · · · Amount · · Amortization · · · Amount · · Amortization
Amortizable intangible assets:
Core deposit intangibles	$1,711	$(852)	$1,711	$(802)
Other amortizable intangibles	1,405	(1,405)	1,405	(1,405)
Total	$3,116	$(2,257)	$3,116	$(2,207)

Amortization expense was $25,000 and $62,000 for the three months ended June 30, 2026 and 2025, respectively, and $50,000 and $125,000 for the six months ended June 30, 2026 and 2025, respectively.

NOTE 6: Borrowings

Short-term borrowings consisted of $45.00 million and $20.00 million of FHLB advances at June 30, 2026 and December 31, 2025, respectively.

Long-term borrowings consisted of $40.00 million of the Corporation’s subordinated notes, $25.51 million of the Corporation’s trust preferred capital notes and $7.66 million of other borrowings at June 30, 2026. Long-term borrowings consisted of $20.00 million of FHLB advances, $40.00 million of the Corporation’s subordinated notes, $25.49 million of the Corporation’s trust preferred capital notes and $7.84 million of other borrowings at December 31, 2025. The Corporation’s subordinated notes and trust preferred capital notes are included in “Subordinated Notes” in the Consolidated Balance Sheets.

NOTE 7: Equity, Other Comprehensive Income and Earnings Per Share

Equity and Noncontrolling Interest

The Board of Directors authorized a program, effective January 1, 2026 through December 31, 2026, to repurchase up to $5.0 million of the Corporation’s common stock (the 2026 Repurchase Program). During the three and six months ended June 30, 2026, the Corporation repurchased 4,095 shares and 8,374 shares of its common stock under the 2026 Repurchase Program, respectively. As of June 30, 2026, there was $4.4 million remaining available for repurchases of the Corporation’s common stock under the 2026 Repurchase Program. The Corporation didnot repurchase any of its common stock during the three and six months ended June 30, 2025 under the Corporation’s previous share repurchase program, effective January 1, 2025 through December 31, 2025 (the 2025 Repurchase Program).

Additionally, during the six months ended June 30, 2026 and 2025, the Corporation withheld 4,898 shares and 5,502 shares of its common stock, respectively, from employees to satisfy tax withholding obligations upon vesting of restricted stock.

Noncontrolling interest represents an ownership interest in C&F Select LLC, a subsidiary of C&F Mortgage, held by an unrelated investor.

Accumulated Other Comprehensive Loss, Net

Changes in each component of accumulated other comprehensive loss were as follows for the three months ended June 30, 2026 and 2025.


· · Securities · · Defined · · Cash · · ·
· · Available · · Benefit · · Flow · ·
(Dollars in thousands) · · For Sale · · Plan · · Hedges · · Total
Accumulated other comprehensive (loss) income at March 31, 2026	$(11,670)	$(1,271)	$364	$(12,577)

Other comprehensive (loss) income arising during the period	(788)	—	128	(660)
Related income tax effects	165	—	(33)	132
	(623)	—	95	(528)

Reclassifications into net income	7,129	(17)	—	7,112
Related income tax effects	(1,497)	3	—	(1,494)
	5,632	(14)	—	5,618

Other comprehensive income (loss), net of tax	5,009	(14)	95	5,090

Accumulated other comprehensive (loss) income at June 30, 2026	$(6,661)	$(1,285)	$459	$(7,487)


· · Securities · · Defined · · Cash · · ·
· · Available · · Benefit · · Flow · ·
(Dollars in thousands) · · For Sale · · Plan · · Hedges · · Total
Accumulated other comprehensive (loss) income at March 31, 2025	$(19,083)	$(1,806)	$598	$(20,291)

Other comprehensive loss arising during the period	(1,040)	—	(272)	(1,312)
Related income tax effects	218	—	70	288
	(822)	—	(202)	(1,024)

Reclassifications into net income	—	1	19	20
Related income tax effects	—	(1)	(5)	(6)
	—	—	14	14

Other comprehensive loss, net of tax	(822)	—	(188)	(1,010)

Accumulated other comprehensive (loss) income at June 30, 2025	$(19,905)	$(1,806)	$410	$(21,301)

Changes in each component of accumulated other comprehensive loss were as follows for the six months ended June 30, 2026 and 2025.


· · Securities · · Defined · · Cash · · ·
· · Available · · Benefit · · Flow · ·
(Dollars in thousands) · · For Sale · · Plan · · Hedges · · Total
Accumulated other comprehensive (loss) income at December 31, 2025	$(10,212)	$(1,258)	$304	$(11,166)

Other comprehensive (loss) income arising during the period	(2,634)	—	210	(2,424)
Related income tax effects	553	—	(54)	499
	(2,081)	—	156	(1,925)

Reclassifications into net income	7,129	(34)	(2)	7,093
Related income tax effects	(1,497)	7	1	(1,489)
	5,632	(27)	(1)	5,604

Other comprehensive income (loss), net of tax	3,551	(27)	155	3,679

Accumulated other comprehensive (loss) income at June 30, 2026	$(6,661)	$(1,285)	$459	$(7,487)


· · Securities · · Defined · · Cash · · ·
· · Available · · Benefit · · Flow · ·
(Dollars in thousands) · · For Sale · · Plan · · Hedges · · Total
Accumulated other comprehensive (loss) income at December 31, 2024	$(23,693)	$(1,797)	$886	$(24,604)

Other comprehensive income (loss) arising during the period	4,795	—	(659)	4,136
Related income tax effects	(1,007)	—	170	(837)
	3,788	—	(489)	3,299

Reclassifications into net income	—	(11)	17	6
Related income tax effects	—	2	(4)	(2)
	—	(9)	13	4

Other comprehensive income (loss), net of tax	3,788	(9)	(476)	3,303

Accumulated other comprehensive (loss) income at June 30, 2025	$(19,905)	$(1,806)	$410	$(21,301)

The following table provides information regarding reclassifications from accumulated other comprehensive loss into net income for the three and six months ended June 30, 2026 and 2025.


· · Three Months Ended June 30, · · · Six Months Ended June 30, · Line Item In the Consolidated
(Dollars in thousands) · · 2026 · · 2025 · · · 2026 · · 2025 · · Statements of Income
Securities available for sale:
Reclassification of net realized losses into net income	$(7,129)	$—	$(7,129)	$—	Net losses on sales, maturities and calls of available for sale securities
Related income tax effects	1,497	—	1,497	—	Income tax expense
	(5,632)	—	(5,632)	—	Net of tax

Defined benefit plan:1
Reclassification of recognized net actuarial losses into net income	—	(18)	—	(23)	Noninterest expenses - Other
Amortization of prior service credit into net income	17	17	34	34	Noninterest expenses - Other
Related income tax effects	(3)	1	(7)	(2)	Income tax expense
	14	—	27	9	Net of tax

Cash flow hedges:
Amortization of hedging gains into net income	—	(19)	2	(17)	Interest expense - Trust preferred capital notes
Related income tax effects	—	5	(1)	4	Income tax expense
	—	(14)	1	(13)	Net of tax

Total	$(5,618)	$(14)	$(5,604)	$(4)

1	See “Note 9: Employee Benefit Plans,” for additional information.

Earnings Per Share (EPS)

The components of the Corporation’s EPS calculations are as follows:

· · · · · ·
· · Three Months Ended June 30,
(Dollars in thousands)	2026	2025
Net income attributable to C&F Financial Corporation	$8,563	$7,691
Weighted average shares outstanding—basic and diluted	3,252,163	3,238,765

· · · · · ·
· · Six Months Ended June 30,
(Dollars in thousands)	2026	2025
Net income attributable to C&F Financial Corporation	$15,310	$13,059
Weighted average shares outstanding—basic and diluted	3,250,334	3,236,849

The Corporation has applied the two-class method of computing basic and diluted EPS for each period presented because the Corporation’s unvested restricted shares outstanding contain rights to nonforfeitable dividends equal to dividends on the Corporation’s common stock. Accordingly, the weighted average number of shares used in the calculation of basic and diluted EPS includes both vested and unvested shares outstanding.

NOTE 8: Share-Based Plans

Under the 2022 Stock and Incentive Compensation Plan the Corporation is permitted to award, and previously under the 2013 Stock and Incentive Compensation Plan until April 19, 2022, the Corporation was permitted to award, shares of restricted stock to certain key employees, non-employee directors and consultants. Restricted shares awarded to employees generally vest over periods up tofive years, and restricted shares awarded to non-employee directors generally vest over periods up tothree years. A summary of the activity for restricted stock awards for the periods indicated is presented below:


· · 2026
· · · · Weighted-
· · · · Average
· · · · Grant Date
· · Shares · · Fair Value
Unvested, December 31, 2025	100,578	$65.57
Granted	16,635	74.92
Vested	(18,030)	63.09
Forfeited	(210)	71.73
Unvested, June 30, 2026	98,973	67.58

· · · · · ·
· · 2025 ·
			Weighted-
			Average
			Grant Date
		Shares	Fair Value
Unvested, December 31, 2024	119,778		$54.56
Granted	12,800		76.99
Vested	(19,975)		47.54
Forfeited	(4,105)		57.77
Unvested, June 30, 2025	108,498		58.38

The fair value of shares that vested during the three and six months ended June 30, 2026 was $598,000 and $1.34 million, respectively, and was $430,000 and $1.45 million during the three and six months ended June 30, 2025, respectively. Compensation is accounted for using the fair value of the Corporation’s common stock on the date the restricted shares are awarded. Compensation expense, net of forfeitures, is charged to income ratably over the required service periods and was $546,000 ($381,000 after income taxes) and $1.06 million ($758,000 after income taxes) for the three and six months

ended June 30, 2026, respectively, and was $456,000 ($316,000 after income taxes) and $916,000 ($587,000 after income taxes) for the three and six months ended June 30, 2025, respectively. As of June 30, 2026, there was $3.85 million of total unrecognized compensation cost related to restricted stock granted under the plans, which is expected to be recognized through 2031, with a weighted-average remaining service period of 2.7 years.

NOTE 9: Employee Benefit Plans

The following table summarizes the components of net periodic benefit cost for the Bank’s non-contributory cash balance pension plan.


· · Three Months Ended June 30, · · Six Months Ended June 30,
(Dollars in thousands) · · 2026 · · 2025 · · 2026 · · 2025
Components of net periodic benefit cost:
Service cost, included in salaries and employee benefits	$309	$314	$662	$660

Other components of net periodic benefit cost:
Interest cost	222	214	450	432
Expected return on plan assets	(392)	(353)	(802)	(722)
Amortization of prior service credit	(17)	(17)	(34)	(34)
Recognized net actuarial losses	—	18	—	23
Other components of net periodic benefit cost, included in other noninterest expense	(187)	(138)	(386)	(301)

Net periodic benefit cost	$122	$176	$276	$359

NOTE 10: Fair Value of Assets and Liabilities

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. GAAP requires that valuation techniques maximize the use of observable inputs and minimize the use of unobservable inputs. GAAP also establishes a fair value hierarchy which prioritizes the valuation inputs into three broad levels. Based on the underlying inputs, each fair value measurement in its entirety is reported in one of the three levels. These levels are:

●	Level 1—Valuation is based upon quoted prices for identical instruments traded in active markets. Level 1 assets and liabilities include debt securities traded in an active exchange market.

●

Level 2—Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

●

Level 3—Valuation is determined using model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect the Corporation’s estimates of assumptions that market participants would use in pricing the respective asset or liability. Valuation techniques may include the use of pricing models, discounted cash flow models and similar techniques.

GAAP allows an entity the irrevocable option to elect fair value (the fair value option) for the initial and subsequent measurement for certain financial assets and liabilities on a contract-by-contract basis. The Corporation has elected to use fair value accounting for its entire portfolio of loans held for sale (LHFS).

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following describes the valuation techniques and inputs used by the Corporation in determining the fair value of certain assets recorded at fair value on a recurring basis in the financial statements.

Securities available for sale. The Corporation primarily values its investment portfolio using Level 2 fair value measurements, but may also use Level 1 or Level 3 measurements if required by the composition of the portfolio. At June 30, 2026 and December 31, 2025, the Corporation’s entire securities portfolio was comprised of investments in debt securities classified as available for sale, which were valued using Level 2 fair value measurements. The Corporation has contracted with third party portfolio accounting service vendors for valuation of its securities portfolio. The vendors’ sources for security valuation are ICE Data Services (ICE), London Stock Exchange Group (LSEG) and Bloomberg Valuation Service (BVAL). Each source provides opinions, known as evaluated prices, as to the value of individual securities based on model-based pricing techniques that are partially based on available market data, including prices for similar instruments in active markets and prices for identical assets in markets that are not active. ICE provides evaluated prices for the Corporation’s obligations of states and political subdivisions category of securities. ICE uses proprietary pricing models and pricing systems, mathematical tools and judgment to determine an evaluated price for a security based upon a hierarchy of market information regarding that security or securities with similar characteristics. LSEG and BVAL provide evaluated prices for the Corporation’s U.S. treasury, government agencies and corporations, mortgage-backed, and corporate categories of securities. U.S. treasury securities and fixed-rate callable securities of U.S. government agencies and corporations are individually evaluated on an option adjusted spread basis for callable issues or on a nominal spread basis incorporating the term structure of agency market spreads and the appropriate risk free benchmark curve for non-callable issues. Pass-through mortgage-backed securities (MBS) in the mortgage-backed category are grouped into aggregate categories defined by issuer program, weighted average coupon, and weighted average maturity. Each aggregate category is benchmarked to relative to-be-announced mortgage-backed securities (TBA securities) or other benchmark prices. TBA securities prices are obtained from market makers and live trading systems. Collateralized mortgage obligations in the mortgage-backed category are individually evaluated based upon a hierarchy of security specific information and market data regarding that security or securities with similar characteristics. Each evaluation is determined using an option adjusted spread and prepayment model based on volatility-driven, multi-dimensional spread tables. Fixed-rate securities issued by the Small Business Association in the mortgage-backed category are individually evaluated based upon a hierarchy of security specific information and market data regarding that security or securities with similar characteristics.

Other investments. The Corporation holds equity investments in funds that provide debt and equity financing to small businesses. These investments are recorded at fair value and included in “Other Assets” in the Consolidated Balance Sheets. Changes in fair value are recognized in “Investment income from other equity interests” on the Consolidated Statements of Income. The funds are managed by investment companies, and the net asset value of each fund is reported regularly by the investment companies. At June 30, 2026 and December 31, 2025, the combined fair value of these investments was $1.64 million and $1.66 million, respectively. These investments, measured at net asset value, are not presented in the tables below related to fair value measurements. Changes in fair value of these investments resulted in the recognition of unrealized gains of $19,000 and $90,000 for the three and six months ended June 30, 2026, respectively, and unrealized gains of $12,000 and $71,000 for the three and six months ended June 30, 2025, respectively.

The Corporation also holds an equity investment consisting of an equity interest in a full-service title and settlement agency (the title agency) at June 30, 2026, and previously held an equity interest in Bearing Insurance Group, LLC, an independent insurance agency (the insurance agency). During the second quarter of 2026, the Corporation completed the sale of its membership interest in the insurance agency, resulting in a pre-tax gain of $8.3 million. The investment in the title agency is, and previously the investment in the insurance agency was, subject to a contractual sale restriction that only permits the sale of the investment back to the respective agency itself. At June 30, 2026 and December 31, 2025, the fair value of these investments was $59,000 and $4.09 million, respectively. The investment in the title agency is, and previously the investment in the insurance agency was, recorded at fair value based on the contractual redemption value of the Corporation’s proportionate share of the respective agency’s equity. The gain on sale of the insurance agency and changes in fair value of the investments are recognized in “Investment income from other equity interests” on the Consolidated Statements of Income and resulted in the recognition of a gain on sale of $8.3 million for the three and six months ended June 30, 2026 and unrealized gains of $24,000 and $325,000 for the three and six months ended June 30, 2026. Changes

in fair value resulted in the recognition of unrealized gains of $116,000 and $264,000 for the three and six months ended June 30, 2025, respectively. The Corporation’s investment in the title agency is, and previously in the insurance agency was, classified as Level 2.

**Loans held for sale.**Fair value of the Corporation’s LHFS is based on observable market prices for similar instruments traded in the secondary mortgage loan markets in which the Corporation conducts business. The Corporation’s portfolio of LHFS is classified as Level 2.

Derivative asset - IRLCs. The Corporation recognizes IRLCs at fair value. Fair value of IRLCs is based on either (i) the price of the underlying loans obtained from an investor for loans that will be delivered on a best efforts basis or (ii) the observable price for individual loans traded in the secondary market for loans that will be delivered on a mandatory basis. All of the Corporation’s IRLCs are classified as Level 2.

Rabbi trust assets. The Corporation’s rabbi trust holds assets intended to be used to fund the liability associated with its deferred compensation plan. The assets held by the rabbi trust are invested at the direction of the individual participants, generally in marketable investment securities such as common stocks and mutual funds or short-term investments (e.g., cash), and are measured at fair value. Rabbi trust assets and the associated deferred compensation plan liability are included in other assets and other liabilities, respectively, in the Consolidated Balance Sheets. The Corporation’s rabbi trust assets are classified as Level 1.

Derivative asset/liability – interest rate swaps on loans. The Corporation recognizes interest rate swaps at fair value. The Corporation has contracted with a third party vendor to provide valuations for these interest rate swaps using the discounted cash flow method. All of the Corporation’s interest rate swaps on loans are classified as Level 2.

Derivative asset/liability – cash flow hedges. The Corporation recognizes cash flow hedges at fair value. The Corporation has contracted with a third party vendor to provide valuations for these cash flow hedges using the discounted cash flow method. All of the Corporation’s cash flow hedges are classified as Level 2.

The following table presents the balances of financial assets and liabilities measured at fair value on a recurring basis. The fair value of forward sales of mortgage loans were not material to the consolidated financial statements of the Corporation at June 30, 2026 or December 31, 2025.


· · June 30, 2026
· · Fair Value Measurements Classified as · · Assets/Liabilities at
(Dollars in thousands) · · Level 1 · · Level 2 · · Level 3 · · Fair Value
Assets:
Securities available for sale
U.S. Treasury securities	$—	$4,934	$—	$4,934
U.S. government agencies and corporations	—	23,858	—	23,858
Mortgage-backed securities	—	243,730	—	243,730
Obligations of states and political subdivisions	—	153,218	—	153,218
Corporate and other debt securities	—	32,512	—	32,512
Total securities available for sale	—	458,252	—	458,252
Loans held for sale	—	44,066	—	44,066
Other investments	—	59	—	59
Rabbi trust assets	18,783	—	—	18,783
Derivatives
IRLC	—	1,050	—	1,050
Interest rate swaps on loans	—	2,404	—	2,404
Cash flow hedges	—	627	—	627
Total assets	$18,783	$506,458	$—	$525,242

Liabilities:
Derivatives
Interest rate swaps on loans	$—	$2,404	$—	$2,404
Cash flow hedges	—	25	—	25
Total liabilities	$—	$2,429	$—	$2,429


· · December 31, 2025
· · Fair Value Measurements Classified as · · Assets/Liabilities at
(Dollars in thousands) · · Level 1 · · Level 2 · · Level 3 · · Fair Value
Assets:
Securities available for sale
U.S. Treasury securities	$—	$4,887	$—	$4,887
U.S. government agencies and corporations	—	55,710	—	55,710
Mortgage-backed securities	—	205,832	—	205,832
Obligations of states and political subdivisions	—	157,091	—	157,091
Corporate and other debt securities	—	34,591	—	34,591
Total securities available for sale	—	458,111	—	458,111
Loans held for sale	—	40,911	—	40,911
Other investments	—	4,428	—	4,428
Rabbi trust assets	17,510	—	—	17,510
Derivatives
IRLC	—	574	—	574
Interest rate swaps on loans	—	2,503	—	2,503
Cash flow hedges	—	598	—	598
Total assets	$17,510	$507,125	$—	$524,635

Liabilities:
Derivatives
Interest rate swaps on loans	$—	$2,503	$—	$2,503
Cash flow hedges	—	208	—	208
Total liabilities	$—	$2,711	$—	$2,711

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

The Corporation may be required, from time to time, to measure and recognize certain assets at fair value on a nonrecurring basis in accordance with GAAP. The following describes the valuation techniques and inputs used by the Corporation in determining the fair value of certain assets recorded at fair value on a nonrecurring basis in the financial statements.

**OREO.**OREO is held for sale and initially recorded at fair value less estimated costs to sell. Initial fair value is based upon appraisals the Corporation obtains from independent licensed appraisers or recent sales of similar properties and general market conditions. Subsequently, management periodically performs valuations of the assets based on updated appraisals, general market conditions, recent sales of similar properties, length of time the properties have been held, and our ability and intent with regard to continued ownership of the properties. The Corporation may incur additional write-downs of OREO to fair value less estimated costs to sell if valuations indicate a further deterioration in market conditions. As such, the Corporation records OREO as a nonrecurring fair value measurement classified as Level 3. At December 31, 2025, OREO was comprised of a property previously used by the Bank as a branch, which was consolidated into a nearby branch in 2024.

**Collateral dependent loans.**When a borrower is experiencing financial difficulty and repayment is expected substantially through the sale of the collateral, the loan is individually evaluated for purposes of estimating the allowance for credit losses and may be recorded at the fair value of the underlying collateral less estimated costs to sell. The level of the allowance for credit losses is recorded to reflect the net amount expected to be collected. The Corporation obtains an appraisal from independent licensed appraisers with relevant industry experience. When a collateral dependent loan is measured at fair value based solely on observable market prices or a current appraisal without further adjustments for unobservable inputs, the nonrecurring fair value measurement is classified as Level 2. The Corporation may adjust the appraised value based on recent sales of similar properties or general market conditions when appropriate and as such, records the collateral dependent loan where the borrower is experiencing financial difficulty as a nonrecurring fair value measurement classified as Level 3. At June 30, 2026 and December 31, 2025, the Corporation hadno collateral dependent loans where the borrower is experiencing financial difficulty.

The following table presents the balances of assets measured at fair value on a nonrecurring basis at December 31, 2025. There wereno assets measured at fair value on a nonrecurring basis at June 30, 2026.

· · · · · · · · · · · · ·
· · December 31, 2025
· · Fair Value Measurements Classified as · · Assets at Fair
(Dollars in thousands) · · Level 1 · · Level 2 · · Level 3 · · Value
Other real estate owned, net	$—	$—	$1,316	$1,316
Total	$—	$—	$1,316	$1,316

Fair Value of Financial Instruments

FASB ASC 825,* Financial Instruments*, requires disclosure about fair value of financial instruments, including those financial assets and financial liabilities that are not required to be measured and reported at fair value on a recurring or nonrecurring basis. ASC 825 excludes certain financial instruments and all nonfinancial instruments from its disclosure requirements. Accordingly, the aggregate fair value amounts presented may not necessarily represent the underlying fair value of the Corporation. The Corporation uses the exit price notion in calculating the fair values of financial instruments not measured at fair value on a recurring basis.

The following tables reflect the carrying amounts and estimated fair values of the Corporation’s financial instruments whether or not recognized on the Consolidated Balance Sheets at fair value.


· · Carrying · · Fair Value Measurements at June 30, 2026 Classified as · · Total Fair
(Dollars in thousands) · · Value · · Level 1 · · Level 2 · · Level 3 · · Value
Financial assets:
Cash and short-term investments	$63,887	$62,110	$1,777	$—	$63,887
Securities available for sale	458,252	—	458,252	—	458,252
Loans, net	2,073,114	—	—	2,070,956	2,070,956
Loans held for sale	44,066	—	44,066	—	44,066
Other investments	59	—	59	—	59
Rabbi trust assets	18,783	18,783	—	—	18,783
Derivatives
IRLC	1,050	—	1,050	—	1,050
Interest rate swaps on loans	2,404	—	2,404	—	2,404
Cash flow hedges	627	—	627	—	627
Bank-owned life insurance	22,032	—	22,032	—	22,032
Accrued interest receivable	11,769	11,769	—	—	11,769
Financial liabilities:
Demand and savings deposits	1,445,744	1,445,744	—	—	1,445,744
Time deposits	919,614	—	917,181	—	917,181
Borrowings	110,510	—	107,034	—	107,034
Derivatives
Interest rate swaps on loans	2,404	—	2,404	—	2,404
Cash flow hedges	25	—	25	—	25
Accrued interest payable	3,948	3,948	—	—	3,948


· · Carrying · · Fair Value Measurements at December 31, 2025 Classified as · · Total Fair
(Dollars in thousands) · · Value · · Level 1 · · Level 2 · · Level 3 · · Value
Financial assets:
Cash and short-term investments	$79,916	$79,132	$784	$—	$79,916
Securities available for sale	458,111	—	458,111	—	458,111
Loans, net	2,014,899	—	—	2,008,199	2,008,199
Loans held for sale	40,911	—	40,911	—	40,911
Other investments	4,428	—	4,428	—	4,428
Rabbi trust assets	17,510	17,510	—	—	17,510
Derivatives
IRLC	574	—	574	—	574
Interest rate swaps on loans	2,503	—	2,503	—	2,503
Cash flow hedges	598	—	598	—	598
Bank-owned life insurance	21,808	—	21,808	—	21,808
Accrued interest receivable	11,726	11,726	—	—	11,726
Financial liabilities:
Demand and savings deposits	1,449,356	1,449,356	—	—	1,449,356
Time deposits	896,367	—	895,898	—	895,898
Borrowings	105,493	—	102,881	—	102,881
Derivatives
Interest rate swaps on loans	2,503	—	2,503	—	2,503
Forward sales of TBA securities	208	—	208	—	208
Accrued interest payable	3,745	3,745	—	—	3,745

NOTE 11: Business Segments

The Corporation operates in a decentralized fashion inthree 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 extendstwo 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.


· · Three Months Ended June 30, 2026
· · Community · · Mortgage · · Consumer · · · · · · · · ·
(Dollars in thousands) · · Banking · · Banking · · Finance · · Other · · Eliminations · · Consolidated
Interest income	$27,215	$818	$12,086	$—	$232	$40,351
Interest expense	10,151	—	—	1,110	—	11,261
Net interest income before allocation	17,064	818	12,086	(1,110)	232	29,090
Net interest allocation1	5,934	(416)	(5,518)	—	—	—
Net interest income	22,998	402	6,568	(1,110)	232	29,090
Gain on sales of loans	—	2,655	—	—	(219)	2,436
Other noninterest income	5,578	2,007	149	1,652	(46)	9,340
Net revenue	28,576	5,064	6,717	542	(33)	40,866

Provision for credit losses	150	—	2,500	—	—	2,650

Salaries and employee benefits	10,485	2,105	2,014	1,897	—	16,501
Occupancy expense	2,012	231	159	—	—	2,402
Data processing	2,610	434	349	10	—	3,403
Professional fees	665	50	157	71	—	943
Insurance expense	391	17	32	—	—	440
Marketing and advertising expenses	491	140	8	—	—	639
Loan processing and collection expenses	75	499	344	—	—	918
Provision for indemnifications	—	(25)	—	—	—	(25)
Other segment items2	1,457	196	410	82	(19)	2,126
Total noninterest expense	18,186	3,647	3,473	2,060	(19)	27,347

Income (loss) before taxes	10,240	1,417	744	(1,518)	(14)	10,869
Income tax expense (benefit)	2,067	357	206	(384)	(3)	2,243
Net income (loss)	$8,173	$1,060	$538	$(1,134)	$(11)	$8,626

Other data:
Capital expenditures	$2,311	$85	$12	$—	$—	$2,408
Depreciation and amortization	835	40	75	—	—	950

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:

a.	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.

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

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


· · Three Months Ended June 30, 2025
· · Community · · Mortgage · · Consumer · · · · · · · · ·
(Dollars in thousands) · · Banking · · Banking · · Finance · · Other · · Eliminations · · Consolidated
Interest income	$24,378	$732	$12,144	$—	$153	$37,407
Interest expense	10,143	—	—	756	—	10,899
Net interest income before allocation	14,235	732	12,144	(756)	153	26,508
Net interest allocation1	6,110	(374)	(5,736)	—	—	—
Net interest income	20,345	358	6,408	(756)	153	26,508
Gain on sales of loans	—	2,573	—	—	(115)	2,458
Other noninterest income	4,378	1,700	149	1,225	(62)	7,390
Net revenue	24,723	4,631	6,557	469	(24)	36,356

Provision for credit losses	(300)	—	2,400	—	—	2,100

Salaries and employee benefits	9,421	1,971	2,018	1,436	—	14,846
Occupancy expense	1,669	290	140	—	—	2,099
Data processing	2,300	358	321	10	—	2,989
Professional fees	680	67	135	119	—	1,001
Insurance expense	345	37	34	—	—	416
Marketing and advertising expenses	415	125	9	—	—	549
Loan processing and collection expenses	26	327	392	—	—	745
Provision for indemnifications	—	(35)	—	—	—	(35)
Other segment items2	1,419	181	364	74	(18)	2,020
Total noninterest expense	16,275	3,321	3,413	1,639	(18)	24,630

Income (loss) before taxes	8,748	1,310	744	(1,170)	(6)	9,626
Income tax expense (benefit)	1,632	325	205	(302)	(1)	1,859
Net income (loss)	$7,116	$985	$539	$(868)	$(5)	$7,767

Other data:
Capital expenditures	$482	$84	$—	$—	$—	$566
Depreciation and amortization	878	39	79	—	—	996

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:

a.	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.

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

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


· · Six Months Ended June 30, 2026
· · Community · · Mortgage · · Consumer · · · · · · · · ·
(Dollars in thousands) · · Banking · · Banking · · Finance · · Other · · Eliminations · · Consolidated
Interest income	$53,387	$1,358	$24,304	$—	$448	$79,497
Interest expense	20,486	—	—	2,212	—	22,698
Net interest income before allocation	32,901	1,358	24,304	(2,212)	448	56,799
Net interest allocation1	11,718	(648)	(11,070)	—	—	—
Net interest income	44,619	710	13,234	(2,212)	448	56,799
Gain on sales of loans	—	5,384	—	—	(403)	4,981
Other noninterest income	10,074	3,712	303	1,352	(96)	15,345
Net revenue	54,693	9,806	13,537	(860)	(51)	77,125

Provision for credit losses	450	—	5,800	—	—	6,250

Salaries and employee benefits	20,602	4,367	4,046	1,843	—	30,858
Occupancy expense	3,866	446	305	—	—	4,617
Data processing	5,083	806	670	19	—	6,578
Professional fees	1,305	78	351	126	—	1,860
Insurance expense	771	36	63	—	—	870
Marketing and advertising expenses	911	252	23	—	—	1,186
Loan processing and collection expenses	114	859	818	—	—	1,791
Provision for indemnifications	—	(60)	—	—	—	(60)
Other segment items2	2,614	385	825	175	(37)	3,962
Total noninterest expense	35,266	7,169	7,101	2,163	(37)	51,662

Income (loss) before taxes	18,977	2,637	636	(3,023)	(14)	19,213
Income tax expense (benefit)	3,694	667	179	(744)	(3)	3,793
Net income (loss)	$15,283	$1,970	$457	$(2,279)	$(11)	$15,420

Other data:
Capital expenditures	$2,631	$87	$12	$—	$—	$2,730
Depreciation and amortization	1,666	70	154	—	—	1,890

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:

a.	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.

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

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


· · Six Months Ended June 30, 2025
· · Community · · Mortgage · · Consumer · · · · · · · · ·
(Dollars in thousands) · · Banking · · Banking · · Finance · · Other · · Eliminations · · Consolidated
Interest income	$47,762	$1,071	$24,267	$—	$295	$73,395
Interest expense	20,524	—	—	1,353	—	21,877
Net interest income before allocation	27,238	1,071	24,267	(1,353)	295	51,518
Net interest allocation1	11,864	(446)	(11,418)	—	—	—
Net interest income	39,102	625	12,849	(1,353)	295	51,518
Gain on sales of loans	—	4,558	—	—	(253)	4,305
Other noninterest income	8,608	2,836	326	1,447	(101)	13,116
Net revenue	47,710	8,019	13,175	94	(59)	68,939

Provision for credit losses	(200)	—	5,300	—	—	5,100

Salaries and employee benefits	18,700	3,763	3,995	1,871	—	28,329
Occupancy expense	3,499	503	290	—	—	4,292
Data processing	4,642	584	611	18	—	5,855
Professional fees	1,404	93	226	199	—	1,922
Insurance expense	761	67	79	—	—	907
Marketing and advertising expenses	799	265	14	—	—	1,078
Loan processing and collection expenses	68	557	803	—	—	1,428
Provision for indemnifications	—	(60)	—	—	—	(60)
Other segment items2	2,634	358	800	181	(35)	3,938
Total noninterest expense	32,507	6,130	6,818	2,269	(35)	47,689

Income (loss) before taxes	15,403	1,889	1,057	(2,175)	(24)	16,150
Income tax expense (benefit)	2,842	473	292	(614)	(5)	2,988
Net income (loss)	$12,561	$1,416	$765	$(1,561)	$(19)	$13,162

Other data:
Capital expenditures	$718	$115	$—	$—	$—	$833
Depreciation and amortization	1,753	72	159	—	—	1,984

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:

a.	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.

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

c.	Consumer finance – licenses and other taxes 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 June 30, 2026:
Total assets	$2,687,166	$56,059	$463,408	$36,481	$(433,146)	$2,809,968
Total loans held for investment, net	1,634,738	—	434,534	—	3,842	2,073,114
Total loans held for sale	—	47,935	—	—	(3,869)	44,066
Total deposits	2,384,453	—	—	—	(19,095)	2,365,358

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

NOTE 12: Commitments and Contingent Liabilities

The Corporation enters into commitments to extend credit in the normal course of business to meet the financing needs of its customers, including loan commitments and standby letters of credit. These instruments involve elements of credit and interest rate risk in excess of the amounts recorded on the Consolidated Balance Sheets. The Corporation’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit written is represented by the contractual amount of these instruments. The Corporation uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments. Collateral is obtained based on management’s credit assessment of the customer.

Loan commitments are agreements to extend credit to a customer provided that there are no violations of the terms of the contract prior to funding. Commitments have fixed expiration dates or other termination clauses and may require payment of a fee by the customer. Because many of the commitments may expire without being completely drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Bank evaluates each customer’s creditworthiness on a case-by-case basis. The amount of loan commitments at the Bank was $463.28 million at June 30, 2026 and $443.28 million at December 31, 2025, which does not include IRLCs at the mortgage banking segment, which are discussed in Note 13. Off balance sheet credit exposures, including loan commitments, are not recorded on balance sheet, but expected credit losses arising from off balance sheet credit exposures are recorded as a reserve for unfunded commitments and reported in Other Liabilities. The following table presents the Corporation’s reserve for unfunded commitments for the periods indicated.

· · · · · · · · · · · ·
· · Three Months Ended June 30, · · Six Months Ended June 30,
(Dollars in thousands)	2026	2025	2026	2025
Balance at the beginning of period	$1,750	$1,750	$1,600	$1,800
Provision charged to operations	—	—	150	(50)
Total	$1,750	$1,750	$1,750	$1,750

Standby letters of credit are written conditional commitments issued by the Bank to guarantee the performance of a customer to a third party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to customers. The total contract amount of standby letters of credit, whose contract amounts represent credit risk, was $17.30 million at June 30, 2026 and $22.21 million at December 31, 2025.

The mortgage banking segment sells the majority of the residential mortgage loans it originates to third-party investors. Additionally, the community banking segment purchases residential mortgage loans from the mortgage banking segment under terms and conditions similar to third-party investors. As is customary in the industry, the agreements with these investors require the mortgage banking segment to extend representations and warranties with respect to program compliance, borrower misrepresentation, fraud, and early payment performance. Under the agreements, the investors are entitled to make loss claims and repurchase requests of the mortgage banking segment for loans that contain covered deficiencies. The mortgage banking segment has obtained early payment default recourse waivers for a portion of its business. Recourse periods for early payment default for the remaining investors vary from 90 days up toone year. Recourse periods for borrower misrepresentation or fraud, or underwriting error do not have a stated time limit. The mortgage banking segment maintains an allowance for indemnifications that represents management’s estimate of losses that are probable of arising under these recourse provisions. As performance data for loans that have been sold is not made available to the mortgage banking segment by the investors, the estimate of potential losses is inherently subjective and is based on historical indemnification payments and management’s assessment of current conditions that may contribute to indemnified losses on mortgage loans that have been sold in the secondary market. For the three and six months ended June 30, 2026, the Corporation recorded net reversals of provision for indemnifications of $25,000 and $60,000, respectively, compared to a net reversal of provision for indemnifications of $35,000 and $60,000 for the three and six months ended June 30, 2025, respectively, which is included in “Noninterest Expenses – Other” on the Consolidated Statements of Income. No indemnification payments were made during the three and six months ended June 30, 2026 and 2025. The allowance for indemnifications was $1.10 million and $1.16 million at June 30, 2026 and December 31, 2025, respectively.

NOTE 13: Derivative Financial Instruments

The Corporation uses derivative financial instruments primarily to manage risks to the Corporation associated with changing interest rates, and to assist customers with their risk management objectives. The Corporation recognizes derivative financial instruments at fair value as either an other asset or other liability in the Consolidated Balance Sheets. The Corporation’s derivative financial instruments include (1) interest rate swaps that qualify and are designated as cash flow hedges on the Corporation’s trust preferred capital notes, (2) interest rate swaps with certain qualifying commercial loan customers and dealer counterparties and (3) interest rate contracts arising from mortgage banking activities, including interest rate lock commitments (IRLCs) on mortgage loans. The gain or loss on the Corporation’s cash flow hedges is reported as a component of other comprehensive income (loss), net of deferred income taxes, and reclassified into earnings in the same period(s) during which the hedged transactions affect earnings. IRLCs and interest rate swaps with loan customers and dealer counterparties are not designated as hedging instruments, and therefore changes in the fair value of these instruments are reported as noninterest income.

Cash flow hedges. The Corporation designates interest rate swaps as cash flow hedges when they are used to manage exposure to variability in cash flows on variable rate borrowings such as the Corporation’s trust preferred capital notes. These interest rate swaps are derivative financial instruments that manage the risk of variability in cash flows by exchanging variable-rate interest payments on a notional amount of the Corporation’s borrowings for fixed-rate interest payments. Interest rate swaps designated as cash flow hedges are expected to be highly effective in offsetting the effect of changes in interest rates on the amount of variable-rate interest payments, and the Corporation assesses the effectiveness of each hedging relationship quarterly. If the Corporation determines that a cash flow hedge is no longer highly effective, future changes in the fair value of the hedging instrument would be reported in earnings. As of June 30, 2026, the Corporation has designated cash flow hedges to manage its exposure to variability in cash flows on certain variable rate borrowings for periods through June 2029.

All interest rate swaps were entered into with counterparties that met the Corporation’s credit standards and the agreements contain collateral provisions protecting the at-risk party. The Corporation believes that the credit risk inherent in these derivative contracts is not significant.

These cash flow hedges are reported at fair value in “other assets” in the Consolidated Balance Sheets. Unrealized gains or losses recorded in other comprehensive income (loss) related to cash flow hedges are reclassified into earnings in the same period(s) during which the hedged interest payments affect earnings. When a designated hedging instrument is terminated and the hedged interest payments remain probable of occurring, any remaining unrecognized gain or loss in other comprehensive income (loss) is reclassified into earnings in the period(s) during which the forecasted interest payments affect earnings. Amounts reclassified into earnings and interest receivable or payable under designated interest rate swaps are reported in interest expense. The Corporation does not expect any unrealized losses related to cash flow hedges to be reclassified into earnings in the next twelve months. Refer to Note 7 for additional information on amounts reclassified into net income related to these cash flow hedges.

Loan swaps. The Bank also enters into interest rate swaps with certain qualifying commercial loan customers to meet their interest rate risk management needs. The Bank simultaneously enters into interest rate swaps with dealer counterparties, with identical notional amounts and offsetting terms. The net result of these interest rate swaps is that the customer pays a fixed rate of interest and the Corporation receives a floating rate. These back-to-back loan swaps are derivative financial instruments and are reported at fair value in “other assets” and “other liabilities” in the Consolidated Balance Sheets. Changes in the fair value of loan swaps are recorded in other noninterest income and sum tozero because of the offsetting terms of swaps with borrowers and swaps with dealer counterparties.

Mortgage banking. The mortgage banking segment enters into IRLCs with customers to originate loans for which the interest rates are determined (or “locked”) prior to funding. The mortgage banking segment is exposed to interest rate risk through fixed-rate IRLCs and mortgage loans from the time that interest rates are locked until the loans are sold in the secondary market. The mortgage banking segment mitigates this interest rate risk by entering into forward sales contracts with investors, which at times includes the community banking segment, at the time that interest rates are locked for mortgage loans to be delivered on a best efforts basis. IRLCs are derivative financial instruments and are reported at fair value in other assets and other liabilities in the Consolidated Balance Sheets, along with the changes in fair value of the

related forward sales of loans. Changes in the fair value of mortgage banking derivatives are recorded as a component of gains on sales of loans.

At June 30, 2026, the mortgage banking segment had $74.42 million of IRLCs and $44.07 million of unpaid principal on mortgage loans held for sale for which it managed interest rate risk using best-efforts forward sales contracts for $118.49 million in mortgage loans.

At December 31, 2025, the mortgage banking segment had $44.64 million of IRLCs and $40.91 million of unpaid principal on mortgage loans held for sale for which it managed interest rate risk using best-efforts forward sales contracts for $85.55 million in mortgage loans.

The following tables summarize key elements of the Corporation’s derivative instruments.


· · June 30, 2026
· · Notional · · · · ·
(Dollars in thousands) · · Amount · · Assets · · Liabilities ·
Cash flow hedges:
Interest rate swap contracts	$20,000	$627	$25
Not designated as hedges:
Customer-related interest rate swap contracts:
Matched interest rate swaps with borrower	63,047	50	2,354
Matched interest rate swaps with counterparty	63,047	2,354	50
Mortgage banking contracts:
IRLCs	74,419	1,050	—


· · December 31, 2025 ·
· · Notional · · · · · ·
(Dollars in thousands) · · Amount · · Assets · · Liabilities · ·
Cash flow hedges:
Interest rate swap contracts	$25,000	$598	$208
Not designated as hedges:
Customer-related interest rate swap contracts:
Matched interest rate swaps with borrower	83,462	224	2,279
Matched interest rate swaps with counterparty	83,462	2,279	224
Mortgage banking contracts:
IRLCs	44,642	574	—

The Corporation and the Bank are required to maintain cash collateral with dealer counterparties for interest rate swap relationships in a loss position. At both June 30, 2026 and December 31, 2025, there wasno cash collateral maintained with dealer counterparties.

NOTE 14: Other Noninterest Expenses

The following table presents the significant components in the Consolidated Statements of Income line “Noninterest Expenses-Other.”


· · Three Months Ended June 30, · · · Six Months Ended June 30,
(Dollars in thousands) · · 2026 · · 2025 · · · 2026 · · 2025
Licenses and taxes expense	$408	$295	$779	$600
Travel and educational expenses	457	305	681	571
Postage and courier expenses	306	288	582	548
Telecommunication expenses	271	327	569	698
Other components of net periodic pension cost	(187)	(138)	(386)	(301)
Provision for indemnifications	(25)	(35)	(60)	(60)
All other noninterest expenses	871	943	1,737	1,822
Total	$2,101	$1,985	$3,902	$3,878

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