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Business Segments
 9 Months Ended
Sep. 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 nine months ended September 30, 2016 and 2015 was as follows (dollars in thousands):

Note 8 – Business Segments (continued)











 

 

 

 

 

Business Segments

 

 

 

 

 



 

 

 

 

 



Community

 

 

 

 



Banking

 

Mortgage

 

Total

Nine months ended September 30, 2016

 

 

 

 

 

   Net interest income

$       14,297

 

$            -

 

$      14,297

   Provision for loan losses

 595 

 

 -

 

 595 

   Net interest income after provision for loan losses

 13,702 

 

 -

 

 13,702 

   Noninterest income

 1,816 

 

 1,789 

 

 3,605 

   Noninterest expenses

 11,466 

 

 1,427 

 

 12,893 

   Income before income taxes

 4,052 

 

 362 

 

 4,414 

   Income tax expense

 1,298 

 

 123 

 

 1,421 

     Net income

$         2,754

 

$        239

 

$        2,993

     Total assets

$     556,824

 

$     3,128

 

$    559,952



 

 

 

 

 

Nine months ended September 30, 2015

 

 

 

 

 

   Net interest income

$       13,011

 

$            -

 

$      13,011

   Provision for loan losses

 277 

 

 -

 

 277 

   Net interest income after provision for loan losses

 12,734 

 

 -

 

 12,734 

   Noninterest income

 1,428 

 

 1,795 

 

 3,223 

   Noninterest expenses

 10,390 

 

 1,343 

 

 11,733 

   Income before income taxes

 3,772 

 

 452 

 

 4,224 

   Income tax expense

 1,203 

 

 154 

 

 1,357 

     Net income

$         2,569

 

$        298

 

$        2,867

     Total assets

$     503,741

 

$     3,874

 

$    507,615



 

 

 

 

 



Community

 

 

 

 



Banking

 

Mortgage

 

Total

Three months ended September 30, 2016

 

 

 

 

 

   Net interest income

$         4,867

 

$            -

 

$        4,867

   Provision for loan losses

 145 

 

 -

 

 145 

   Net interest income after provision for loan losses

 4,722 

 

 -

 

 4,722 

   Noninterest income

 688 

 

 593 

 

 1,281 

   Noninterest expenses

 3,985 

 

 464 

 

 4,449 

   Income before income taxes

 1,425 

 

 129 

 

 1,554 

   Income tax expense

 455 

 

 44 

 

 499 

     Net income

$            970

 

$          85

 

$        1,055

     Total assets

$     556,824

 

$     3,128

 

$    559,952



 

 

 

 

 

Three months ended September 30, 2015

 

 

 

 

 

   Net interest income

$         4,491

 

$            -

 

$        4,491

   Provision for loan losses

 120 

 

 -

 

 120 

   Net interest income after provision for loan losses

 4,371 

 

 -

 

 4,371 

   Noninterest income

 561 

 

 637 

 

 1,198 

   Noninterest expenses

 3,613 

 

 505 

 

 4,118 

   Income before income taxes

 1,319 

 

 132 

 

 1,451 

   Income tax expense

 423 

 

 45 

 

 468 

     Net income

$            896

 

$          87

 

$           983

     Total assets

$     503,741

 

$     3,874

 

$    507,615