C&F Financial Corporation Announces Redemption of the Preferred Stock Issued Under Capital Purchase Program

C&F Financial Corporation CFFI today announced that it has redeemed the remaining 50%, or 10,000 shares, of the 20,000 shares of its Fixed Rate Cumulative Perpetual Preferred Stock, Series A (the "preferred stock") issued to the United States Department of the Treasury in January 2009 under the Capital Purchase Program ("CPP"). The redemption, which took place on April 11, 2012, consisted of $10 million in liquidation value and $77,778 of accrued and unpaid dividends associated with the preferred stock. The funds for this redemption were provided by existing financial resources of the Corporation; therefore, there is no dilution to the Corporation's common shareholders resulting from this redemption because no new capital was issued. The Corporation had previously redeemed 50%, or 10,000 shares, of preferred stock on July 27, 2011. As a result of this redemption, the Corporation will pay no future dividends on the preferred stock. Further, in connection with this redemption, the Corporation will accelerate the accretion of the remaining preferred stock discount, which will reduce net income available to common shareholders by approximately $151,000 in the second quarter of 2012, but will eliminate any future accretion of this amount.