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Business Segments
 9 Months Ended
Sep. 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 nine months ended September 30, 2014 and 2013 was as follows (dollars in thousands):

Note 8 – Business Segments (continued)

 

 

 

 

 

 

 

 

 

 

Business Segments

 

 

 

 

 

 

 

 

 

 

 

 

Community

 

 

 

 

 

Banking

 

Mortgage

 

Total

Nine months ended September 30, 2014

 

 

 

 

 

  Net interest income

$       12,126

 

$            -

 

$      12,126

  Provision for loan losses
55 

 

 -

 
55 

  Net interest income after provision for loan losses
12,071 

 

 -

 
12,071 

  Noninterest income
1,389 

 
1,214 

 
2,603 

  Noninterest expenses
10,071 

 
1,034 

 
11,105 

  Income before income taxes
3,389 

 
180 

 
3,569 

  Income tax expense
1,044 

 
63 

 
1,107 

    Net income

$         2,345

 

$        117

 

$        2,462

    Total assets

$     449,623

 

$     2,063

 

$    451,686

 

 

 

 

 

 

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

 

 

 

 

 

 

 

Community

 

 

 

 

 

Banking

 

Mortgage

 

Total

Three months ended September 30, 2014

 

 

 

 

 

  Net interest income

$         4,149

 

$            -

 

$        4,149

  Provision for loan losses

 -

 

 -

 

 -

  Net interest income after provision for loan losses
4,149 

 

 -

 
4,149 

  Noninterest income
411 

 
518 

 
929 

  Noninterest expenses
3,224 

 
515 

 
3,739 

  Income before income taxes
1,336 

 
3 

 
1,339 

  Income tax expense
409 

 
16 

 
425 

    Net income (loss)

$            927

 

$         (13)

 

$           914

    Total assets

$     449,623

 

$     2,063

 

$    451,686

 

 

 

 

 

 

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
3,376 

 
192 

 
3,568 

  Income before income taxes
1,065 

 
103 

 
1,168 

  Income tax expense
332 

 
23 

 
355 

    Net income

$            733

 

$          80

 

$           813

    Total assets

$     434,493

 

$        879

 

$    435,372