Equity, Other Comprehensive Income and Earnings Per Share

6 Months Ended

Jun. 30, 2020

Equity, Other Comprehensive Income and Earnings Per Share

Equity, Other Comprehensive Income and Earnings Per Share

NOTE 7: Equity, Other Comprehensive Income and Earnings Per Share

Equity and Noncontrolling Interest

During the six months ended June 30, 2020, the Corporation repurchased 8,963 shares of its common stock for an aggregate cost of $355,000 under share repurchase programs authorized by its Board of Directors. During the three and six months ended June 30, 2019, the Corporation repurchased 32,779 and 65,186 shares of its common stock, respectively, for an aggregate cost of $1.62 million and $3.29 million under the share repurchase programs.  The Corporation did not repurchase any of its common stock during the three months ended June 30, 2020.  Additionally during the six months ended June 30, 2020 and 2019, the Corporation withheld 5,069 shares and 4,842 shares of its common stock, respectively, from employees to satisfy tax withholding obligations upon vesting of restricted stock.  The Corporation’s current share repurchase program expired on May 31, 2020 and has not been renewed or extended at this time.

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 investor. In exchange for this noncontrolling interest in C&F Select LLC, C&F Bank received a note receivable from the investor for $490,000, which is included in loans in the Consolidated Balance Sheets and is secured by cash deposits at C&F Bank.

Accumulated Other Comprehensive Loss, Net

The following table presents the cumulative balances of the components of accumulated other comprehensive loss, net of deferred taxes of $303,000 and $604,000 as of June 30, 2020 and December 31, 2019, respectively.

	June 30,		December 31,
(Dollars in thousands)	2020		2019
Net unrealized gains on securities	$	4,705	$	1,560
Net unrecognized losses on cash flow hedges		(1,654)		(69)
Net unrecognized losses on defined benefit plan		(3,689)		(3,740)
Total accumulated other comprehensive loss, net	$	(638)	$	(2,249)

Earnings Per Share (EPS)

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

	Three Months Ended June 30,
(Dollars in thousands)	2020		2019
Net income attributable to C&F Financial Corporation	$	3,746	$	5,843
Weighted average shares outstanding—basic and diluted		3,647,707		3,463,277

	Six Months Ended June 30,
(Dollars in thousands)	2020		2019
Net income attributable to C&F Financial Corporation	$	7,324	$	9,614
Weighted average shares outstanding—basic and diluted		3,646,161		3,473,875

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.