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Business Segments
 9 Months Ended
Sep. 30, 2013
Business Segments [Abstract]  
Business Segments

 

Note 8 – Business Segments

The Company has two reportable business segments: (i) a traditional full service community banking segment and, (ii) a mortgage loan origination business.  The community banking business segment includes Bank of the James which provides loans, deposits, investments and insurance to retail and commercial customers throughout Region 2000 and other areas within Central Virginia.  The mortgage segment provides a variety of mortgage loan products principally within Region 2000.  Mortgage loans are originated and sold in the secondary market through purchase commitments from investors with servicing released.  Because of the pre-arranged purchase commitments, there is minimal risk to the Company.

Both of the Company’s reportable segments are service based.  The mortgage business is a fee-based business while the Bank’s primary source of revenue is net interest income.  The Bank also provides a referral network for the mortgage origination business.  The mortgage business may also be in a position to refer its customers to the Bank for banking services when appropriate.

Information about reportable business segments and reconciliation of such information to the consolidated financial statements for the three and nine months ended September 30, 2013 and 2012 was as follows (dollars in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

Business Segments

 

 

 

 

 

 

 

 

 

 

 

 

Community

 

 

 

 

 

Banking

 

Mortgage

 

Total

Nine months ended September 30, 2013

 

 

 

 

 

  Net interest income

$       11,845

 

$            -

 

$      11,845

  Provision for loan losses
290 

 

 -

 
290 

  Net interest income after provision for loan losses
11,555 

 

 -

 
11,555 

  Noninterest income
1,684 

 
954 

 
2,638 

  Noninterest expenses
10,006 

 
764 

 
10,770 

  Income before income taxes
3,233 

 
190 

 
3,423 

  Income tax expense
960 

 
65 

 
1,025 

    Net income

$         2,273

 

$        125

 

$        2,398

    Total assets

$     434,493

 

$        879

 

$    435,372

 

 

 

 

 

 

Nine months ended September 30, 2012

 

 

 

 

 

  Net interest income

$       11,729

 

$            -

 

$      11,729

  Provision for loan losses
1,776 

 

 -

 
1,776 

  Net interest income after provision for loan losses
9,953 

 

 -

 
9,953 

  Noninterest income
1,649 

 
917 

 
2,566 

  Noninterest expenses
9,898 

 
728 

 
10,626 

  Income before income taxes
1,704 

 
189 

 
1,893 

  Income tax expense
444 

 
64 

 
508 

    Net income

$         1,260

 

$        125

 

$        1,385

    Total assets

$     421,830

 

$     4,247

 

$    426,077

 

 

 

 

 

 

 

Community

 

 

 

 

 

Banking

 

Mortgage

 

Total

Three months ended September 30, 2013

 

 

 

 

 

  Net interest income

$         3,967

 

$            -

 

$        3,967

  Provision for loan losses

 -

 

 -

 

 -

  Net interest income after provision for loan losses
3,967 

 

 -

 
3,967 

  Noninterest income
474 

 
295 

 
769 

  Noninterest expenses
3,323 

 
245 

 
3,568 

  Income before income taxes
1,118 

 
50 

 
1,168 

  Income tax expense
337 

 
18 

 
355 

    Net income

$            781

 

$          32

 

$           813

    Total assets

$     434,493

 

$        879

 

$    435,372

 

 

 

 

 

 

Three months ended September 30, 2012

 

 

 

 

 

  Net interest income

$         4,027

 

$            -

 

$        4,027

  Provision for loan losses
601 

 

 -

 
601 

  Net interest income after provision for loan losses
3,426 

 

 -

 
3,426 

  Noninterest income
650 

 
402 

 
1,052 

  Noninterest expenses
3,491 

 
292 

 
3,783 

  Income before income taxes
585 

 
110 

 
695 

  Income tax expense
119 

 
37 

 
156 

    Net income

$            466

 

$          73

 

$           539

    Total assets

$     421,830

 

$     4,247

 

$    426,077