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Business Segments
 6 Months Ended
Jun. 30, 2014
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 six months ended June 30, 2014 and 2013 was as follows (dollars in thousands):

 

Note 8 – Business Segments (continued)

 

 

 

 

 

 

 

 

 

 

Business Segments

 

 

 

 

 

 

 

 

 

 

 

 

Community

 

 

 

 

 

Banking

 

Mortgage

 

Total

Six months ended June 30, 2014

 

 

 

 

 

  Net interest income

$        7,977

 

$            -

 

$        7,977

  Provision for loan losses
55 

 

 -

 
55 

  Net interest income after provision for loan losses
7,922 

 

 -

 
7,922 

  Noninterest income
978 

 
696 

 
1,674 

  Noninterest expenses
6,847 

 
519 

 
7,366 

  Income before income taxes
2,053 

 
177 

 
2,230 

  Income tax expense
635 

 
47 

 
682 

    Net income

$        1,418

 

$        130

 

$        1,548

    Total assets

$    444,081

 

$     3,279

 

$    447,360

 

 

 

 

 

 

Six months ended June 30, 2013

 

 

 

 

 

  Net interest income

$        7,878

 

$            -

 

$        7,878

  Provision for loan losses
290 

 

 -

 
290 

  Net interest income after provision for loan losses
7,588 

 

 -

 
7,588 

  Noninterest income
1,210 

 
659 

 
1,869 

  Noninterest expenses
6,630 

 
572 

 
7,202 

  Income before income taxes
2,168 

 
87 

 
2,255 

  Income tax expense
628 

 
42 

 
670 

    Net income

$        1,540

 

$          45

 

$        1,585

    Total assets

$    429,937

 

$        934

 

$    430,871

 

 

 

 

 

 

 

Community

 

 

 

 

 

Banking

 

Mortgage

 

Total

Three months ended June 30, 2014

 

 

 

 

 

  Net interest income

$        4,023

 

$            -

 

$        4,023

  Provision for loan losses

 -

 

 -

 

 -

  Net interest income after provision for loan losses
4,023 

 

 -

 
4,023 

  Noninterest income
550 

 
407 

 
957 

  Noninterest expenses
3,497 

 
260 

 
3,757 

  Income before income taxes
1,076 

 
147 

 
1,223 

  Income tax expense
343 

 
37 

 
380 

    Net income

$           733

 

$        110

 

$           843

    Total assets

$    444,081

 

$     3,279

 

$    447,360

 

 

 

 

 

 

Three months ended June 30, 2013

 

 

 

 

 

  Net interest income

$        3,957

 

$            -

 

$        3,957

  Provision for loan losses
55 

 

 -

 
55 

  Net interest income after provision for loan losses
3,902 

 

 -

 
3,902 

  Noninterest income
565 

 
340 

 
905 

  Noninterest expenses
3,352 

 
319 

 
3,671 

  Income before income taxes
1,115 

 
21 

 
1,136 

  Income tax expense
319 

 
20 

 
339 

    Net income

$           796

 

$            1

 

$           797

    Total assets

$    429,937

 

$        934

 

$    430,871