C&F Financial Corporation Reauthorizes Share Repurchase Program

Rhea-AI Summary

C&F Financial Corporation (NASDAQ:CFFI) has announced a new share repurchase program, effective January 1, 2024, authorizing the repurchase of up to $10 million of the Corporation’s common stock through December 31, 2024. The Corporation's previous share repurchase program was last authorized in November 2022 for the repurchase of up to $10 million of the Corporation’s common stock and will expire on December 31, 2023. Under that program, the Corporation has repurchased 135,327 shares of its common stock for an aggregate cost of $7.5 million.

Insights

Financial Analyst

The authorization of a stock repurchase program by C&F Financial Corporation is a strategic financial initiative that can have multiple implications for the company's financial health and market perception. Stock buybacks often signal management's belief that the company's shares are undervalued, providing a bullish sentiment to the market. It can also be a method to improve financial ratios, such as earnings per share (EPS), by reducing the number of outstanding shares.

From a financial analysis perspective, the $10 million allocation for repurchasing shares needs to be assessed against the company's current market capitalization, cash reserves and overall financial strategy. The impact on the company's balance sheet and liquidity should be carefully monitored, as well as the effect on shareholder value. The repurchase program could be a positive sign for investors, indicating a commitment to returning value, but also requires scrutiny to ensure it does not detract from necessary capital expenditures or debt reduction.

Economist

Considering the broader economic context, the decision by C&F Financial Corporation to engage in a stock repurchase program might be reflective of broader economic conditions and market trends. An economist would analyze the potential implications of such a move amidst current market and economic conditions. If the market is bearish, the repurchase could provide support for the stock price. However, in an inflationary or rising interest rate environment, the opportunity cost of using cash for buybacks instead of other investments or savings must be evaluated.

Additionally, the timing and execution of the buybacks, which are subject to management's discretion and market conditions, could influence the program's effectiveness in achieving its intended outcomes, such as stock price support or improved financial metrics.

Industry Analyst

An industry analyst would compare this move by C&F Financial Corporation to repurchase shares with similar strategies employed by other companies within the financial sector. It's essential to analyze whether this repurchase program aligns with industry norms, especially in terms of the size of the buyback relative to the company's market capitalization and the industry's overall trend towards capital distribution strategies.

Furthermore, the analyst would consider the historical performance of the company's stock repurchase initiatives, such as the previous program that resulted in the repurchase of 135,327 shares for $7.5 million. This historical data provides a benchmark to gauge the potential success and market reaction to the new program. The industry-specific context can also shed light on the strategic importance of buybacks as a tool for financial management within the sector.

TOANO, Va., Dec. 20, 2023 (GLOBE NEWSWIRE) -- The board of directors of C&F Financial Corporation (NASDAQ:CFFI) (the Corporation) has authorized a program, effective January 1, 2024, to repurchase up to $10 million of the Corporation’s common stock through December 31, 2024. Repurchases under the program may be made through privately negotiated transactions or open market transactions, including pursuant to a trading plan in accordance with Rule 10b5-1 and/or Rule 10b-18 under the Securities Exchange Act of 1934, as amended, and shares repurchased will be returned to the status of authorized and unissued shares of common stock. The timing, number and purchase price of shares repurchased under the program, if any, will be determined by management in its discretion and will depend on a number of factors, including the market price of the shares, general market and economic conditions, applicable legal requirements and other conditions, and there is no assurance that the Corporation will purchase any shares under the program. The Corporation’s previous share repurchase program was last authorized by the board of directors in November 2022 for the repurchase of up to $10 million of the Corporation’s common stock and will expire on December 31, 2023. Under that program, beginning in December 2022, the Corporation has repurchased 135,327 shares of its common stock for an aggregate cost of $7.5 million.

About C&F

C&F Bank operates 31 banking offices and four commercial loan offices located throughout eastern and central Virginia and offers full wealth management services through its subsidiary C&F Wealth Management, Inc. C&F Mortgage Corporation and its subsidiary C&F Select LLC provide mortgage loan origination services through offices located in Virginia, Maryland, North Carolina, South Carolina and West Virginia. C&F Finance Company provides automobile, marine and recreational vehicle loans through indirect lending programs offered in Alabama, Colorado, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Maryland, Minnesota, Missouri, New Jersey, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Texas, Virginia and West Virginia from its headquarters in Henrico, Virginia.

Additional information regarding the Corporation’s products and services, as well as access to its filings with the Securities and Exchange Commission, are available on the Corporation’s web site at http://www.cffc.com.

Contact:
Jason Long
Chief Financial Officer and Secretary
(804) 843-2360

FAQ

What is the new share repurchase program announced by C&F Financial Corporation (NASDAQ:CFFI)?

The new share repurchase program authorizes the repurchase of up to $10 million of the Corporation’s common stock through December 31, 2024.

When will the new share repurchase program be effective?

The new share repurchase program will be effective from January 1, 2024.

What was the previous share repurchase program authorized by the board of directors of C&F Financial Corporation (NASDAQ:CFFI)?

The previous share repurchase program was authorized in November 2022 for the repurchase of up to $10 million of the Corporation’s common stock and will expire on December 31, 2023.

How many shares of its common stock has the Corporation repurchased under the previous program?

The Corporation has repurchased 135,327 shares of its common stock for an aggregate cost of $7.5 million under the previous share repurchase program.