C And F Financial's Business Segments

C&F Financial Corporation is a bank holding company that was incorporated in March 1994 under the laws of the Commonwealth of Virginia. The Corporation owns all of the stock of Citizens and Farmers Bank (the Bank or C&F Bank), which is an independent commercial bank chartered under the laws of the Commonwealth of Virginia. C&F Bank originally opened for business under the name Farmers and Mechanics Bank on January 22, 1927. C&F Bank has the following five wholly-owned subsidiaries, all incorporated under the laws of the Commonwealth of Virginia:

C&F Mortgage Corporation and its wholly-owned subsidiaries Certified Appraisals LLC and Lender Solutions LLC

C&F Finance Company and its wholly-owned subsidiary C&F Remarketing LLC

C&F Wealth Management Corporation (formerly C&F Investment Services, Inc.)

C&F Insurance Services, Inc.

CVB Title Services, Inc.

C&F Financial Corporation operates primarily through its banking subsidiary, C&F Bank, along with specialized entities like C&F Mortgage and C&F Finance. The company offers a comprehensive range of financial services and products across multiple segments, catering to the needs of both individual consumers and businesses. Below is an extensive description of each segment, along with their respective products and services:

Retail Banking

C&F Bank delivers a variety of retail banking services that encompass both personal and business banking needs. Operations are headquartered in West Point, Virginia, where the main office is located, and customers can choose from 24 additional branches spread throughout Virginia.

Products and Services:
- Deposit Accounts:
- Checking Accounts: Multiple checking options, including basic checking, interest-bearing checking, and specialized accounts for students and seniors.
- Savings Accounts: Standard savings accounts and high-yield savings options, promoting savings among customers.
- Certificates of Deposit (CDs): Offer competitive interest rates for customers willing to lock in their funds for a specified term.

- Loan Products:
- Personal Loans: Unsecured loans to meet individual financial needs, such as holidays, education, or unexpected expenses.
- Business Loans: Tailored lending solutions, including working capital, equipment financing, and lines of credit, aimed at helping local businesses grow.
- Real Estate Loans: Mortgages designed for home purchase or home refinancing, alongside specialized loans for real estate investment.
- Home Equity Loans and Lines of Credit: Allow homeowners to borrow against the equity in their homes for larger financial needs.

- Additional Services:
- Digital Banking: Internet and mobile banking platforms that provide online bill pay, fund transfers, and account management tools.
- ATM Services: A widespread network of ATMs throughout Virginia, providing convenient access for cash withdrawals and balance inquiries.
- Debit and Credit Cards: Offering various card options with features like rewards points, cashback, and low-interest rates.
- Safe Deposit Boxes: Secure storage solutions for valuable items, documents, and memorabilia.
- Electronic Funds Transfer: Services for moving money electronically, including wire transfers and direct deposit.
- Notary Public Services: Available at branch locations for legal documents requiring notarization.

Mortgage Banking

C&F Mortgage handles the mortgage banking segment, which originates residential mortgage loans. It has established itself as a reliable provider with locations in Virginia, Maryland, and North Carolina.

Products and Services:
- Mortgage Loan Origination: Originating various types of home loans, including:
- Conventional Loans: Standard fixed-rate and adjustable-rate mortgages eligible for sale to Fannie Mae or Freddie Mac.
- Government-Insured Loans: FHA, USDA, and VA loans catering to specific borrower needs who may qualify for government-backed financing.

- Secondary Market Sales: Loans originated by C&F Mortgage are typically sold to major investors, such as Wells Fargo and Franklin American Mortgage Company.

- Ancillary Services:
- Appraisal Services: Through Certified Appraisals LLC, C&F Mortgage provides residential property appraisals as part of the mortgage qualification process.
- Lender Solutions: C&F Mortgage’s subsidiary, Lender Solutions LLC, performs various mortgage origination functions for other third-party entities.

Consumer Finance

C&F Finance specializes in consumer finance by providing automobile loans to customers across several states. This division focuses on the
on-primemarket, assisting borrowers with less-than-ideal credit histories.

Products and Services:
- Automobile Financing:
- Indirect Lending: Purchasing retail installment sales contracts from franchised and independent dealerships specializing in used vehicle sales.
- Selective Dealer Partnerships: C&F Finance collaborates with dealers selling late-model, low-mileage vehicles, ensuring quality and value.

- Loan Management:
- Competitive Interest Rates: While interest rates might be higher than traditional auto financing due to the risk profile, C&F Finance aims to make payments manageable relative to the serving market.

- Credit Risk Management:
- As C&F Finance operates in a high-risk market, it anticipates elevated credit losses, implementing necessary strategies to manage portfolio performance.

Revenue Generation

Revenue for C&F Financial Corporation derives mainly from the following channels:
- Retail Banking: Interest income from loans and investment securities, alongside transaction fees associated with deposit accounts.
- Mortgage Banking: Gains from the sale of loans in the secondary market and origination fees.
- Consumer Finance: Interest revenue accrued from automobile loans, which represents the bulk of earnings in this segment.

Together, the diverse service offerings of C&F Financial Corporation cater to a wide range of customer needs while maintaining a strategic focus on profitability and growth in a dynamic financial landscape.