| Industries |
|---|
| Automobiles and Components |
| Electrical Components and Equipment |
| Construction and Engineering |
| Construction Materials |
| Construction and Farm Machinery and Heavy Trucks |
| Exposures |
|---|
| Express intent |
| Military |
| Political reform |
| Cooperate |
| Event Codes |
|---|
| Warn |
| Promise |
| Solicit support |
| Yield to order |
| Adjust |
| Yield |
| Sports contest |
| Host meeting |
| Agree |
| Demand |
| Wiki | Wiki Summary |
|---|---|
| Interest rate parity | Interest rate parity is a no-arbitrage condition representing an equilibrium state under which investors interest rates available on bank deposits in two countries. The fact that this condition does not always hold allows for potential opportunities to earn riskless profits from covered interest arbitrage. |
| Asset-backed security | An asset-backed security (ABS) is a security whose income payments and hence value are derived from and collateralized (or "backed") by a specified pool of underlying assets.\nThe pool of assets is typically a group of small and illiquid assets which are unable to be sold individually. |
| Bank of America Home Loans | Bank of America Home Loans is the mortgage unit of Bank of America. In 2008, Bank of America purchased the failing Countrywide Financial for $4.1 billion. |
| Financial risk | Financial risk is any of various types of risk associated with financing, including financial transactions that include company loans in risk of default. Often it is understood to include only downside risk, meaning the potential for financial loss and uncertainty about its extent.A science has evolved around managing market and financial risk under the general title of modern portfolio theory initiated by Dr. |
| Significant Others | The term significant other (SO) has different uses in psychology and in colloquial language. Colloquially "significant other" is used as a gender-neutral term for a person's partner in an intimate relationship without disclosing or presuming anything about marital status, relationship status, gender identity, or sexual orientation. |
| Sun West Mortgage | Sun West Mortgage Company Inc. (“Sun West Mortgage”) is a mortgage finance services company licensed to originate mortgage loans in 49 states across the United States, Puerto Rico and the Virgin Islands. |
| Escrow | A screw and a bolt (see Differentiation between bolt and screw below) are similar types of fastener typically made of metal and characterized by a helical ridge, called a male thread (external thread). Screws and bolts are used to fasten materials by the engagement of the screw thread with a similar female thread (internal thread) in a matching part. |
| Refinancing | Refinancing is the replacement of an existing debt obligation with another debt obligation under a different term and interest rate. The terms and conditions of refinancing may vary widely by country, province, or state, based on several economic factors such as inherent risk, projected risk, political stability of a nation, currency stability, banking regulations, borrower's credit worthiness, and credit rating of a nation. |
| Disparate impact | Disparate impact in United States labor law refers to practices in employment, housing, and other areas that adversely affect one group of people of a protected characteristic more than another, even though rules applied by employers or landlords are formally neutral. Although the protected classes vary by statute, most federal civil rights laws protect based on race, color, religion, national origin, and sex as protected traits, and some laws include disability status and other traits as well. |
| Adverse childhood experiences | Adverse childhood experiences (ACEs) encompass various forms of physical and emotional abuse, neglect, and household dysfunction experienced in childhood. ACEs have been linked to premature death as well as to various health conditions, including those of mental disorders. |
| Arithmetic | Arithmetic (from Ancient Greek ἀριθμός (arithmós) 'number', and τική [τέχνη] (tikḗ [tékhnē]) 'art, craft') is an elementary part of mathematics that consists of the study of the properties of the traditional operations on numbers—addition, subtraction, multiplication, division, exponentiation, and extraction of roots. In the 19th century, Italian mathematician Giuseppe Peano formalized arithmetic with his Peano axioms, which are highly important to the field of mathematical logic today. |
| Operations management | Operations management is an area of management concerned with designing and controlling the process of production and redesigning business operations in the production of goods or services. It involves the responsibility of ensuring that business operations are efficient in terms of using as few resources as needed and effective in meeting customer requirements. |
| Special operations | Special operations (S.O.) are military activities conducted, according to NATO, by "specially designated, organized, selected, trained, and equipped forces using unconventional techniques and modes of employment". Special operations may include reconnaissance, unconventional warfare, and counter-terrorism actions, and are typically conducted by small groups of highly-trained personnel, emphasizing sufficiency, stealth, speed, and tactical coordination, commonly known as "special forces". |
| Operations research | Operations research (British English: operational research), often shortened to the initialism OR, is a discipline that deals with the development and application of advanced analytical methods to improve decision-making. It is sometimes considered to be a subfield of mathematical sciences. |
| Operation (mathematics) | In mathematics, an operation is a function which takes zero or more input values (called operands) to a well-defined output value. The number of operands (also known as arguments) is the arity of the operation. |
| Yoda conditions | In programming jargon, Yoda conditions (also called Yoda notation) is a programming style where the two parts of an expression are reversed from the typical order in a conditional statement. A Yoda condition places the constant portion of the expression on the left side of the conditional statement. |
| Nervous Conditions | Nervous Conditions is a novel by Zimbabwean author Tsitsi Dangarembga, first published in the United Kingdom in 1988. It was the first book published by a black woman from Zimbabwe in English. |
| Conditions (album) | Conditions is the debut studio album by Australian rock band The Temper Trap, released in Australia through Liberation Music on 19 June 2009. It was later released in the United Kingdom on 10 August 2009. |
| Karush–Kuhn–Tucker conditions | In mathematical optimization, the Karush–Kuhn–Tucker (KKT) conditions, also known as the Kuhn–Tucker conditions, are first derivative tests (sometimes called first-order necessary conditions) for a solution in nonlinear programming to be optimal, provided that some regularity conditions are satisfied.\nAllowing inequality constraints, the KKT approach to nonlinear programming generalizes the method of Lagrange multipliers, which allows only equality constraints. |
| Financial crisis of 2007–2008 | The financial crisis of 2008, or Global Financial Crisis, was a severe worldwide economic crisis that occurred in the early 21st century. It was the most serious financial crisis since the Great Depression (1929). |
| Loan | A man is an adult male human. Prior to adulthood, a male human is referred to as a boy (a male child or adolescent). |
| Hero FinCorp | Hero FinCorp, an associate company of Hero MotoCorp, is an Indian Non-banking financial company (NBFC). The company is currently engaged in consumer finance businesses and commercial lending. |
| Savings and loan crisis | The savings and loan crisis of the 1980s and 1990s (commonly dubbed the S&L crisis) was the failure of 1,043 out of the 3,234 savings and loan associations (S&Ls) in the United States from 1986 to 1995. An S&L or "thrift" is a financial institution that accepts savings deposits and makes mortgage, car and other personal loans to individual members (a cooperative venture known in the United Kingdom as a building society). |
| Expected loss | Expected loss is the sum of the values of all possible losses, each multiplied by the probability of that loss occurring. \nIn bank lending (homes, autos, credit cards, commercial lending, etc.) the expected loss on a loan varies over time for a number of reasons. |
| PIK loan | A PIK, or payment in kind, is a type of high-risk loan or bond that allows borrowers to pay interest with additional debt, rather than cash. That makes it an expensive, high-risk financing instrument since the size of the debt may increase quickly, leaving lenders with big losses if the borrower is unable to pay back the loan. |
| World Bank | The World Bank is an international financial institution that provides loans and grants to the governments of low- and middle-income countries for the purpose of pursuing capital projects. The World Bank is the collective name for the International Bank for Reconstruction and Development (IBRD), International Finance Corporation and International Development Association (IDA), three of five international organizations owned by the World Bank Group. |
| Kiva (organization) | Kiva (commonly known by its domain name, Kiva.org) is a 501(c)(3) non-profit organization headquartered in San Francisco, California, it is the world's first online lending platform connecting online lenders to entrepreneurs across the globe. Kiva's mission is "to expand financial access to help underserved communities thrive."Kiva distributes funds that it receives to financial institutions, social impact businesses, schools and non-profit organizations. |
| Competition | Competition is a rivalry where two or more parties strive for a common goal which cannot be shared: where one's gain is the other's loss (an example of which is a zero-sum game). Competition can arise between entities such as organisms, individuals, economic and social groups, etc. |
| Perfect competition | In economics, specifically general equilibrium theory, a perfect market, also known as an atomistic market, is defined by several idealizing conditions, collectively called perfect competition, or atomistic competition. In theoretical models where conditions of perfect competition hold, it has been demonstrated that a market will reach an equilibrium in which the quantity supplied for every product or service, including labor, equals the quantity demanded at the current price. |
| Competition law | Competition law is the field of law that promotes or seeks to maintain market competition by regulating anti-competitive conduct by companies. Competition law is implemented through public and private enforcement. |
| Monopolistic competition | Monopolistic competition is a type of imperfect competition such that there are many producers competing against each other, but selling products that are differentiated from one another (e.g. by branding or quality) and hence are not perfect substitutes. |
| Competition regulator | A competition regulator is the institution that oversees the functioning of the markets. And the Law in which it takes cognizance of situations having any type of impediments and distortions on the markets and correct them is the competition law (also known as antitrust law). |
| Corporate title | Corporate titles or business titles are given to company and organization officials to show what duties and responsibilities they have in the organization. Such titles are used by publicly and privately held for-profit corporations. |
| Risk Factors |
|---|
| C & F FINANCIAL CORP ITEM 1A RISK FACTORS We are subject to interest rate risk and fluctuations in interest rates may negatively affect our financial performance |
| Our profitability depends in substantial part on our net interest margin, which is the difference between the interest earned on loans, securities and other interest-earning assets, and interest paid on deposits and borrowings |
| Changes in interest rates will affect our net interest margin in diverse ways, including the pricing of loans and deposits, the levels of prepayments and asset quality |
| We are unable to predict actual fluctuations of market interest rates because many factors influencing interest rates are beyond our control |
| We attempt to minimize our exposure to interest rate risk, but we are unable to eliminate it |
| Based on our asset/liability position at December 31, 2005, we are vulnerable to continued increases in short-term interest rates because of our slightly liability-sensitive balance sheet profile for the one-year time period |
| However, these liabilities consist predominantly of deposits, the repricing of which historically lags behind the changes in short-term interest rates |
| We believe that our current interest rate exposure is manageable and does not indicate any significant exposure to interest rate changes |
| Periods of rising interest rates or a decline in real estate values in our market will adversely affect our income from our mortgage company |
| One of the components of our strategic plan is to generate significant non-interest income from our mortgage company, C&F Mortgage |
| In periods of rising interest rates, consumer demand for new mortgages and refinancings may decrease, which in turn could adversely impact our mortgage company |
| Because interest rates depend on factors outside of our control, we cannot eliminate the interest rate risk associated with our mortgage operations |
| In addition, there is speculation that current real estate prices in our market exceed the true values of the properties |
| If this is the case, or if the market generally perceives that this is the case, then real estate prices could become stagnant or decline, and there could be a significant reduction in real estate construction and housing starts |
| This could have a significant adverse affect on demand for loan products offered by our mortgage company |
| Our business is subject to various lending and other economic risks that could adversely impact our results of operations and financial condition |
| Changes in economic conditions, particularly an economic slowdown, could hurt our business |
| Our business is directly affected by general economic and market conditions; broad trends in industry and finance; legislative and regulatory changes; changes in governmental monetary and fiscal policies; and inflation, all of which are beyond our control |
| A deterioration in economic conditions, in particular an economic slowdown within our geographic region, could result in the following consequences, any of which could hurt our business materially: an increase in loan delinquencies; an increase in problem assets and foreclosures; a decline in demand for our products and services; and a deterioration in the value of collateral for loans made by our various business segments |
| Our level of credit risk is increasing due to the concentration of our loan portfolio in commercial loans and in consumer finance loans |
| At December 31, 2005, 45 percent of our loan portfolio consisted of commercial loans |
| These loans generally carry larger loan balances and involve a greater degree of financial and credit risk than home equity and residential loans |
| The increased financial and credit risk associated with these types of loans is a result of several factors, including the concentration of principal in a limited number of loans and to borrowers in similar lines of business, the size of loan balances, the effects of general economic conditions on income-producing properties and the increased difficulty of evaluating and monitoring these types of loans |
| 10 ______________________________________________________________________ [37]Table of Contents At December 31, 2005, 24 percent of our loan portfolio consisted of consumer finance loans that provide automobile financing for customers in the non-prime market |
| During periods of economic slowdown or recession, delinquencies, defaults, repossessions and losses generally increase in this portfolio |
| These periods also may be accompanied by decreased consumer demand for automobiles and declining values of automobiles securing outstanding loans, which weakens collateral coverage and increases the amount of loss in the event of default |
| Significant increases in the inventory of used automobiles during periods of economic recession may also depress the prices at which we may sell repossessed automobiles or delay the timing of these sales |
| Because we focus on non-prime borrowers, the actual rates of delinquencies, defaults, repossessions and losses on these loans are higher than those experienced in the general automobile finance industry and could be dramatically affected by a general economic downturn |
| While we manage the higher risk inherent in loans made to non-prime borrowers through our underwriting criteria and collection methods, we cannot guarantee that these criteria or methods will ultimately provide adequate protection against these risks |
| If our allowance for loan losses becomes inadequate, the results of our operations may be adversely affected |
| The risk of nonpayment is affected by a number of factors, including but not limited to: the duration of the credit; credit risks of a particular customer; changes in economic and industry conditions; and, in the case of a collateralized loan, risks resulting from uncertainties about the future value of the collateral |
| Although we seek to mitigate risks inherent in lending by adhering to specific underwriting practices, our loans may not be repaid |
| We attempt to maintain an appropriate allowance for loan losses to provide for potential losses in our loan portfolio |
| Our allowance for loan losses is determined by analyzing historical loan losses, current trends in delinquencies and charge-offs, plans for problem loan resolution, the opinions of our regulators, changes in the size and composition of the loan portfolio and industry information |
| Also included in our estimates for loan losses are considerations with respect to the impact of economic events, the outcome of which are uncertain |
| Because any estimate of loan losses is necessarily subjective and the accuracy depends on the outcome of future events, we face the risk that charge-offs in future periods will exceed our allowance for loan losses and that additional increases in the allowance for loan losses will be required |
| Additions to the allowance for loan losses would result in a decrease of our net income |
| Although we believe our allowance for loan losses is adequate to absorb probable losses in our loan portfolio, we cannot predict such losses or that our allowance will be adequate in the future |
| Competition from other financial institutions and financial intermediaries may adversely affect our profitability |
| We face substantial competition in originating loans and in attracting deposits |
| Our competition in originating loans and attracting deposits comes principally from other banks, mortgage banking companies, consumer finance companies, savings associations, credit unions, insurance companies and other institutional lenders and purchasers of loans |
| Additionally, banks and other financial institutions with larger capitalization and financial intermediaries not subject to bank regulatory restrictions have larger lending limits and are thereby able to serve the credit needs of larger clients |
| These institutions may be able to offer the same loan products and services that we offer at more competitive rates and prices |
| Increased competition could require us to increase the rates we pay on deposits or lower the rates we offer on loans, which could adversely affect our profitability |
| 11 ______________________________________________________________________ [38]Table of Contents We rely heavily on our management team and the unexpected loss of key officers may adversely affect our operations |
| We believe that our growth and future success will depend in large part on the skills of our executive officers |
| We also depend upon the experience of the officers of our subsidiaries and on their relationships with the communities they serve |
| The loss of the services of one or more of these officers could disrupt our operations and impair our ability to implement our business strategy, which could adversely affect our business, financial condition and results of operations |
| The success of our growth strategy depends on our ability to identify and recruit individuals with experience and relationships in our primary markets |
| The successful implementation of our business strategy will require us to continue to attract, hire, motivate and retain skilled personnel to develop new customer relationships as well as new financial products and services |
| The market for qualified management personnel is competitive |
| In addition, the process of identifying and recruiting individuals with the combination of skills and attributes required to carry out our strategy is often lengthy |
| Our inability to identify, recruit and retain talented personnel to manage new offices effectively and in a timely manner would limit our growth, which could materially adversely affect our business |
| Our corporate culture has contributed to our success, and if we cannot maintain this culture as we grow, we could lose the beneficial aspects fostered by our culture, which could harm our business |
| We believe that a critical contributor to our success has been our corporate culture, which focuses on building personal relationships with our customers |
| As our organization grows, and we are required to implement more complex organizational management structures, we may find it increasingly difficult to maintain the beneficial aspects of our corporate culture |
| This could negatively impact our future success |