Equity, Other Comprehensive Income and Earnings Per Share

12 Months Ended

Dec. 31, 2023

Equity, Other Comprehensive Income and Earnings Per Share

Equity, Other Comprehensive Income and Earnings Per Share

NOTE 12: Equity, Other Comprehensive Income and Earnings Per Share

Equity and Noncontrolling Interest

The Board of Directors authorized a program, effective December 1, 2022, to repurchase up to $10.0 million of the Corporation’s common stock through December 31, 2023 (the 2022 Repurchase Program). During the year ended December 31, 2023, the Corporation repurchased 127,364 shares, in the amount of $7.05 million, of its common stock under the 2022 Repurchase Program.  As of December 31, 2023, the Corporation made aggregate common stock repurchases of 135,327 shares for an aggregate amount repurchased of $7.51 million under the 2022 Repurchase Program. The 2022 Repurchase Program expired on December 31, 2023. In December 2023, the Board of Directors authorized a program, effective January 1, 2024, to repurchase up to $10.0 million of the Corporation’s common stock through December 31, 2024.

The Corporation’s previous share repurchase program, which was authorized by the Board of Directors in November 2021, expired on November 30, 2022. As of December 31, 2022, the Corporation made aggregate common stock repurchases of 89,373 shares for an aggregate amount repurchased of $4.6 million under the previous share repurchase program.

During the year ended December 31, 2021, the Corporation repurchased 145,185 shares of its common stock, for an aggregate cost of $7.31 million under share repurchase programs authorized by its Board of Directors.

Additionally, during the years ended December 31, 2023, 2022 and 2021, the Corporation withheld 12,039 shares, 7,696 shares and 19,554 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 Income (Loss), Net

Changes in each component of accumulated other comprehensive loss were as follows for the years ended December 31, 2023, 2022 and 2021:

	Securities		Defined		Cash
	Available		Benefit		Flow
(Dollars in thousands)	For Sale		Plan		Hedges		Total
Accumulated other comprehensive (loss) income at December 31, 2022	$	(35,184)	$	(3,236)	$	1,462	$	(36,958)
Other comprehensive income (loss) arising during the period		12,883		508		(526)		12,865
Related income tax effects		(2,705)		(106)		135		(2,676)
		10,178		402		(391)		10,189
Reclassifications into net income		5		104		(6)		103
Related income tax effects		(1)		(22)		2		(21)
		4		82		(4)		82
Other comprehensive income (loss), net of tax		10,182		484		(395)		10,271
Accumulated other comprehensive (loss) income at December 31, 2023	$	(25,002)	$	(2,752)	$	1,067	$	(26,687)

	Securities		Defined		Cash
	Available		Benefit		Flow
(Dollars in thousands)	For Sale		Plan		Hedges		Total
Accumulated other comprehensive income (loss) at December 31, 2021	$	437	$	(2,055)	$	(469)	$	(2,087)
Other comprehensive (loss) income arising during the period		(45,090)		(1,465)		2,607		(43,948)
Related income tax effects		9,469		308		(671)		9,106
		(35,621)		(1,157)		1,936		(34,842)
Reclassifications into net income		—		(30)		(7)		(37)
Related income tax effects		—		6		2		8
		—		(24)		(5)		(29)
Other comprehensive (loss) income, net of tax		(35,621)		(1,181)		1,931		(34,871)
Accumulated other comprehensive (loss) income at December 31, 2022	$	(35,184)	$	(3,236)	$	1,462	$	(36,958)

	Securities		Defined		Cash
	Available		Benefit		Flow
(Dollars in thousands)	For Sale		Plan		Hedges		Total
Accumulated other comprehensive income (loss) at December 31, 2020	$	4,397	$	(4,985)	$	(1,367)	$	(1,955)
Other comprehensive (loss) income arising during the period		(4,971)		2,274		1,216		(1,481)
Related income tax effects		1,044		(478)		(313)		253
		(3,927)		1,796		903		(1,228)
Reclassifications into net income		(42)		1,436		(7)		1,387
Related income tax effects		9		(302)		2		(291)
		(33)		1,134		(5)		1,096
Other comprehensive (loss) income, net of tax		(3,960)		2,930		898		(132)
Accumulated other comprehensive income (loss) at December 31, 2021	$	437	$	(2,055)	$	(469)	$	(2,087)

The following table provides information regarding the reclassifications from accumulated other comprehensive loss into net income for the years ended December 31, 2023, 2022 and 2021:

	Year Ended December 31,						Line Item In the Consolidated
(Dollars in thousands)	2023		2022		2021		Statements of Income
Securities available for sale:
Reclassification of net realized losses into net income	$	(5)	$	—	$	42	Net losses on sales, maturities and calls of available for sale securities
Related income tax effects		1		—		(9)	Income tax expense
		(4)		—		33	Net of tax
Defined benefit plan:1
Reclassification of recognized net actuarial losses into net income		(171)		(38)		(1,504)	Noninterest expenses - Other
Amortization of prior service credit into net income		67		68		68	Noninterest expenses - Other
Related income tax effects		22		(6)		302	Income tax expense
		(82)		24		(1,134)	Net of tax
Cash flow hedges:
Amortization of hedging gains into net income		6		7		7	Interest expense - Trust preferred capital notes
Related income tax effects		(2)		(2)		(2)	Income tax expense
		4		5		5	Net of tax
Total reclassifications into net income	$	(82)	$	29	$	(1,096)

1See “Note 14: Employee Benefit Plans,” for additional information.

Earnings Per Share (EPS)

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

	Year Ended December 31,
(Dollars in thousands)	2023		2022		2021
Net income attributable to C&F Financial Corporation	$	23,604	$	29,159	$	28,667
Weighted average shares outstanding—basic and diluted		3,411,995		3,517,114		3,604,119

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.