NOTE 6: Equity, Other Comprehensive Income and Earnings Per Share

Equity and Noncontrolling Interest

During the third quarter and first nine months of 2019, the Corporation repurchased 21,337 and 86,523 shares of its common stock, respectively, for an aggregate cost of $1.10 million and $4.39 million, respectively, under share repurchase programs authorized by its Board of Directors. Additionally during the first nine months of 2019 and 2018, the Corporation withheld 5,341 shares and 3,947 shares of its common stock, respectively, from employees to satisfy tax withholding obligations upon vesting of restricted stock.

In the first quarter of 2019, C&F Select LLC, a subsidiary of C&F Mortgage, issued a 49 percent ownership interest to an unrelated third party in exchange for $490,000. The holder of this noncontrolling interest financed the investment through a loan obtained from C&F Bank.

Accumulated Other Comprehensive Loss

The following table presents the cumulative balances of the components of accumulated other comprehensive loss, net of deferred taxes of $628,000 and $1.23 million as of September 30, 2019 and December 31, 2018, respectively.


	September 30,		December 31,
(Dollars in thousands)	2019		2018
Net unrealized gains (losses) on securities	$	1,575	$	(1,375)
Net unrecognized (losses) gains on cash flow hedges		(381)		215
Net unrecognized losses on defined benefit plan		(3,441)		(3,512)
Total accumulated other comprehensive loss	$	(2,247)	$	(4,672)

Earnings Per Share (EPS)

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


	Three Months Ended September 30,
(Dollars in thousands)	2019		2018
Net income attributable to C&F Financial Corporation	$	4,880	$	5,101
Weighted average shares outstanding—basic and diluted		3,430,298		3,503,371


	Nine Months Ended September 30,
(Dollars in thousands)	2019		2018
Net income attributable to C&F Financial Corporation	$	14,494	$	14,063
Weighted average shares outstanding - basic and diluted		3,459,191		3,502,550

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.