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Business Segments
 9 Months Ended
Sep. 30, 2020
Business Segments [Abstract]  
Business Segments

Note 7 – 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, 2020 and 2019 was as follows (dollars in thousands):

Note 7 – Business Segments (continued)











 

 

 

 

 

Business Segments

 

 

 

 

 



 

 

 

 

 



Community

 

 

 

 



Banking

 

Mortgage

 

Total

Nine months ended September 30, 2020

 

 

 

 

 

   Net interest income

$       18,257

 

$            -

 

$      18,257

   Provision for loan losses

 2,348 

 

 -

 

 2,348 

   Net interest income after provision for loan losses

 15,909 

 

 -

 

 15,909 

   Noninterest income

 2,453 

 

 5,586 

 

 8,039 

   Noninterest expenses

 16,271 

 

 3,605 

 

 19,876 

   Income before income taxes

 2,091 

 

 1,981 

 

 4,072 

   Income tax expense

 386 

 

 416 

 

 802 

     Net income

$         1,705

 

$     1,565

 

$        3,270

     Total assets

$     838,425

 

$   10,704

 

$    849,129



 

 

 

 

 

Nine months ended September 30, 2019

 

 

 

 

 

   Net interest income

$       18,447

 

$            -

 

$      18,447

   Provision for loan losses

 434 

 

 -

 

 434 

   Net interest income after provision for loan losses

 18,013 

 

 -

 

 18,013 

   Noninterest income

 1,936 

 

 3,103 

 

 5,039 

   Noninterest expenses

 15,700 

 

 2,247 

 

 17,947 

   Income before income taxes

 4,249 

 

 856 

 

 5,105 

   Income tax expense

 840 

 

 180 

 

 1,020 

     Net income

$         3,409

 

$        676

 

$        4,085

     Total assets

$     702,215

 

$     5,899

 

$    708,114



 

 

 

 

 



Community

 

 

 

 



Banking

 

Mortgage

 

Total

Three months ended September 30, 2020

 

 

 

 

 

   Net interest income

$         6,203

 

$            -

 

$        6,203

   Provision for loan losses

 700 

 

 -

 

 700 

   Net interest income after provision for loan losses

 5,503 

 

 -

 

 5,503 

   Noninterest income

 605 

 

 2,459 

 

 3,064 

   Noninterest expenses

 5,322 

 

 1,422 

 

 6,744 

   Income before income taxes

 786 

 

 1,037 

 

 1,823 

   Income tax expense

 151 

 

 218 

 

 369 

     Net income

$            635

 

$        819

 

$        1,454

     Total assets

$     838,425

 

$   10,704

 

$    849,129



 

 

 

 

 

Three months ended September 30, 2019

 

 

 

 

 

   Net interest income

$         6,165

 

$            -

 

$        6,165

   Provision for loan losses

 108 

 

 -

 

 108 

   Net interest income after provision for loan losses

 6,057 

 

 -

 

 6,057 

   Noninterest income

 824 

 

 1,337 

 

 2,161 

   Noninterest expenses

 5,453 

 

 920 

 

 6,373 

   Income before income taxes

 1,428 

 

 417 

 

 1,845 

   Income tax expense

 283 

 

 88 

 

 371 

     Net income

$         1,145

 

$        329

 

$        1,474

     Total assets

$     702,215

 

$     5,899

 

$    708,114