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C&F Financial Corporation Announces Earnings and Branch Expansion.

Business Editors

WEST POINT, Va.--(BUSINESS WIRE)--Jan. 25, 2001

C&F Financial Corporation (NASDAQ: CFFI), the one-bank holding company for Citizens and Farmers Bank of West Point, VA, reported net income of $1,454,000, or $.40 per share, for the quarter ended December 31, 2000 and $5,836,000, or $1.60 per share, for the year ended December 31, 2000.

For the quarter ended December 31, 2000, net income increased 19.7% over net income for 1999 of $1,212,000 and earnings per share increased 21.2% over earnings per share for 1999 of $.33. For the year ended December 31, 2000, net income decreased 8.9% and earnings per share decreased 6.4% compared to the same period in 1999 (both net income and earnings per share for 1999 exclude $370,000 of interest income, net of taxes, from a non-accrual loan collected in 1999). The increase in net income and earnings per share for the fourth quarter of 2000 principally resulted from overall fourth quarter growth at the Mortgage Company and the Bank and a reduction in the provision for loan losses at the Bank, as well as the effect of the 85,000 shares of the Company's common stock repurchased throughout 2000. The decrease in earnings for the year ended 2000 was mainly a result of decreased earnings for the year at C&F Mortgage offset in part by the effect of the 85,000 shares of common stock repurchased.

Earnings at C&F Mortgage were approximately $653,000 for the year ended December 31, 2000 compared to $1,512,000 for the same period in 1999. The $895,000 decrease in earnings at C&F Mortgage is a result of lower production due to the increase in interest rates, beginning in 1999 and continuing into 2000.

The Company's annualized return on average equity (ROE) and annualized return on average assets (ROA) were 15.28% and 1.68%, respectively, for the quarter ended December 31, 2000 compared to 13.71% and 1.53%, respectively, for the quarter ended December 31, 1999. ROE and ROA were 15.99% and 1.81%, respectively, for the year ended December 31, 2000 compared to 18.17% and 2.07%, respectively, excluding the interest collected on the non-accrual loan in 1999, for the prior year.

The Company announced today, that it has purchased land at the corner of Huguenot and Alverser Roads in Richmond, Virginia. This site will house the second branch and corporate headquarters of Citizens & Commerce Bank, a division of Citizens and Farmers Bank, an office of C&F Investment Services, Inc. and the corporate headquarters and one of the Richmond branches of C&F Mortgage. The building will be the featured property at a new retail and office park development -- "C&F Center". The offices are scheduled to open by the fourth quarter of 2001.

President and CEO, Larry Dillon stated, "We are excited about the prospects for the new Richmond facilities. While opening new offices is dilutive to earnings in the short term, we believe the long term outlook for these operations is excellent. We are continuously looking for ways to make this a better Company for both our customers and shareholders and these operations will give our customers better access to our services and ultimately enhance shareholder value.

"Despite the overall decrease in earnings, we are pleased with the performance of the Company for 2000. Earnings at Citizens and Farmers Bank are up over last year after absorbing the cost of opening a new Williamsburg branch in April of 2000 and the opening of Citizens & Commerce Bank, a division of Citizens and Farmers Bank, in the last quarter of 1999. While reduced activity throughout the mortgage banking industry has caused a decline in earnings, C&F Mortgage company has been profitable every month of 2000, something that has not happened for all community banks with mortgage companies this year. Finally, despite our decrease in earnings for 2000, our earnings, as well as our ROE and ROA, are near the top of our peer group for community banks."

C&F Financial Corporation's stock trades on the Nasdaq National Market System under the symbol CFFI. The stock closed at a price of $14.50 per share on Wednesday, January 24, 2001. At December 31, 2000, the book value of the stock was $10.86 per share, and the Company paid a cash dividend of $.14 per share during the fourth quarter of 2000. The Company's market makers include Advest, Inc., Scott & Stringfellow, Inc., Davenport & Company and McKinnon & Company, Inc.

C&F Financial Corporation operates ten retail bank branches located throughout the Williamsburg to Richmond corridor in Virginia through its Citizens and Farmers Bank subsidiary. Citizens & Commerce Bank, which operates as a division of Citizens and Farmers Bank, opened its first branch in November of 1999 in the Richmond market and specializes in consumer and small business services. The Company provides mortgage and title services through C&F Mortgage Company's ten offices and offers full brokerage services through its subsidiary C&F Investment Services, Inc.


Selected Financial Information
(dollars in thousands, except per share data)

Balance Sheets 12/31/00 12/31/99

 Investment securities - available
 for sale at fair value $ 31,913 $ 30,208
 Investment securities - held to
 maturity at amortized cost 33,770 34,791
 Loans held for sale 17,600 24,887
 Loans, net 229,944 206,116
 Total assets 347,472 329,241
 Deposits 290,688 260,854
 Other borrowings 13,969 30,035
 Shareholders' equity 38,780 35,129


 Twelve Months Ended
Statements of Income 12/31/00 12/31/99

 Interest income $ 26,421 $ 23,644
 Interest expense 11,309 9,068
 Provision for loan losses 400 600
 Other operating income 8,945 11,275
 Other operating expenses 15,998 16,100
 Income tax expense 1,823 2,395
 Net income 5,836 6,756
 Earnings per common share- assuming
 dilution $ 1.60 $ 1.81


 Quarter Ended
Statements of Income 12/31/00 12/31/99

 Interest income $ 6,983 $ 6,037
 Interest expense 3,157 2,356
 Provision for loan losses 150 245
 Other operating income 2,289 2,250
 Other operating expenses 4,038 4,128
 Income tax expense 473 346
 Net income 1,454 1,212
 Earnings per common share- assuming
 dilution $ .40 $ .33


 Twelve Months Ended
Selected Ratios 12/31/00 12/31/99

 Book value per share $ 10.86 $ 9.64
 Dividends per share $ .53 $ .49
 Return on average assets(1) 1.81% 2.07%
 Return on average equity(1) 15.99% 18.17%


 Quarter Ended
Selected Ratios 12/31/00 12/31/99

 Book value per share $ 10.86 $ 9.64
 Dividends per share $ .14 $ .13
 Return on average assets 1.68% 1.53%
 Return on average equity 15.28% 13.71%

 (1) Excludes $370,000, after taxes, of one-time interest collected
on a non-accrual loan in 1999.
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Publication:Business Wire
Date:Jan 25, 2001
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