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Business Segments
 6 Months Ended
Jun. 30, 2016
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 gain on sale 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, 2016 and 2015 was as follows (dollars in thousands):

Note 8 – Business Segments (continued)











 

 

 

 

 

Business Segments

 

 

 

 

 



 

 

 

 

 



Community

 

 

 

 



Banking

 

Mortgage

 

Total

Six months ended June 30, 2016

 

 

 

 

 

   Net interest income

$        9,430

 

$            -

 

$        9,430

   Provision for loan losses

 450 

 

 -

 

 450 

   Net interest income after provision for loan losses

 8,980 

 

 -

 

 8,980 

   Noninterest income

 1,128 

 

 1,196 

 

 2,324 

   Noninterest expenses

 7,481 

 

 963 

 

 8,444 

   Income before income taxes

 2,627 

 

 233 

 

 2,860 

   Income tax expense

 843 

 

 79 

 

 922 

     Net income

$        1,784

 

$        154

 

$        1,938

     Total assets

$    541,120

 

$     4,610

 

$    545,730



 

 

 

 

 

Six months ended June 30, 2015

 

 

 

 

 

   Net interest income

$        8,520

 

$            -

 

$        8,520

   Provision for loan losses

 157 

 

 -

 

 157 

   Net interest income after provision for loan losses

 8,363 

 

 -

 

 8,363 

   Noninterest income

 867 

 

 1,158 

 

 2,025 

   Noninterest expenses

 6,777 

 

 838 

 

 7,615 

   Income before income taxes

 2,453 

 

 320 

 

 2,773 

   Income tax expense

 780 

 

 109 

 

 889 

     Net income

$        1,673

 

$        211

 

$        1,884

     Total assets

$    489,821

 

$     3,015

 

$    492,836



 

 

 

 

 



Community

 

 

 

 



Banking

 

Mortgage

 

Total

Three months ended June 30, 2016

 

 

 

 

 

   Net interest income

$        4,743

 

$            -

 

$        4,743

   Provision for loan losses

 250 

 

 -

 

 250 

   Net interest income after provision for loan losses

 4,493 

 

 -

 

 4,493 

   Noninterest income

 620 

 

 696 

 

 1,316 

   Noninterest expenses

 3,748 

 

 506 

 

 4,254 

   Income before income taxes

 1,365 

 

 190 

 

 1,555 

   Income tax expense

 440 

 

 64 

 

 504 

     Net income

$           925

 

$        126

 

$        1,051

     Total assets

$    541,120

 

$     4,610

 

$    545,730



 

 

 

 

 

Three months ended June 30, 2015

 

 

 

 

 

   Net interest income

$        4,324

 

$            -

 

$        4,324

   Provision for loan losses

 57 

 

 -

 

 57 

   Net interest income after provision for loan losses

 4,267 

 

 -

 

 4,267 

   Noninterest income

 454 

 

 624 

 

 1,078 

   Noninterest expenses

 3,484 

 

 451 

 

 3,935 

   Income before income taxes

 1,237 

 

 173 

 

 1,410 

   Income tax expense

 394 

 

 59 

 

 453 

     Net income

$           843

 

$        114

 

$           957

     Total assets

$    489,821

 

$     3,015

 

$    492,836