For Immediate Release
                            C&F FINANCIAL CORPORATION

Monday, March 1, 1999

Contact:      Thomas Cherry, Senior Vice President & Chief Financial Officer
              (804) 843-2360


                       C&F Financial Corporation Announces
                                Stock Repurchase

         West Point, VA -- (NASDAQ:CFFI) The board of directors of C&F Financial
Corporation  recently approved the repurchase of up to 250,000 shares of Company
common stock in blocks of 10,000 shares or higher at a price of $20.00 per share
or less.  Acquisitions  at this price must be completed  prior to the  Company's
announced  dividend  record date of March 15,  1999.  Management  has  discussed
possible purchases with several large  shareholders who previously  indicated to
management a willingness to sell stock. Management believes it has agreements to
buy 235,000  shares  from six  shareholders  by March 12,  1999.  A  transaction
involving 100,000 of those shares (from a trust managed in part by a director of
the  Company)  is subject  to  approval  by the  co-trustee  and the  court.  If
management does not acquire all 250,000 shares from large block holders, it may,
at its  discretion,  purchase  shares from the market,  with total  shares being
purchased not to exceed 250,000.

         The following  table shows the Company's  capital ratios as of December
31,  1998 and the pro  forma  ratios  as of  December  31,  1998,  assuming  the
repurchase of 250,000 shares at $20.00 per share:

                                                   Pro Forma          Well Capitalized
                           December 31, 1998    December 31, 1998         Minimum
                                                                    
Total Capital                      13.4%             11.6%                 10.0%
 (to risk weighted assets)

Tier 1 Capital                     12.5              10.6                   6.0
 (to risk weighted assets)

Tier 1 Capital                     11.5               9.8                   5.0
 (to average assets)


         As   shown  in  the   table   above,   the   Company   still   will  be
well-capitalized,  as defined under applicable bank holding company regulations,
after completing the repurchase,  and management  believes the Company will have
ample capital and liquidity to meet foreseeable needs.

         C&F Financial  Corporation  operates nine retail bank branches  located
throughout  the  Williamsburg  to  Richmond  corridor  in  Virginia  through its
Citizens and Farmers Bank subsidiary.  The Company  provides  mortgage and title
services  through C&F  Mortgage  Corporation's  eight  offices.  C&F  Investment
Services, Inc. provides a comprehensive range of investment services.