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Business Segments
 6 Months Ended
Jun. 30, 2022
Business Segments [Abstract]  
Business Segments Note 7 – Business Segments

The Company has three reportable business segments: (i) a traditional full-service community banking segment, (ii) a mortgage loan origination business, and (iii) a registered investment advisory business (sometimes referred to as the wealth management 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. The investment advisory business offers investment advisory services through Financial’s wholly-owned subsidiary, Pettyjohn, Wood & White, Inc.

All of the Company’s reportable segments are service based. The mortgage business is a gain on sale business and the investment advisory business is fee for service based, while the Bank’s primary source of revenue is net interest income. The Bank also provides a referral network for the mortgage origination business and the investment advisory 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, 2022 and 2021 was as follows (dollars in thousands):


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Note 7 – Business Segments (continued)

Business Segments

Investment

Community

Advisory

Banking

Mortgage

Services

Total

For the three months ended June 30, 2022

Net interest income

$        7,124

$            -

$              -

$        7,124

Recovery of loan losses

(300)

-

-

(300)

Net interest income after recovery of loan losses

7,424

-

-

7,424

Noninterest income

774

1,299

961

3,034

Noninterest expenses

5,874

1,159

559

7,592

Income before income taxes

2,324

140

402

2,866

Income tax expense

459

30

85

574

Net income

$        1,865

$        110

$         317

$        2,292

Total assets

$    941,294

$     5,141

$    13,142

$    959,577

For the three months ended June 30, 2021

Net interest income

$        6,710

$            -

$              -

$        6,710

Provision for loan losses

-

-

-

-

Net interest income after provision for loan losses

6,710

-

-

6,710

Noninterest income

739

2,310

-

3,049

Noninterest expenses

5,705

1,532

-

7,237

Income before income taxes

1,744

778

-

2,522

Income tax expense

345

163

-

508

Net income

$        1,399

$        615

$              -

$        2,014

Total assets

$    901,350

$     7,014

$              -

$    908,364

Investment

Community

Advisory

Banking

Mortgage

Services

Total

Six months ended June 30, 2022

Net interest income

$      13,514

$            -

$              -

$      13,514

Recovery of loan losses

(600)

-

-

(600)

Net interest income after recovery of loan losses

14,114

-

-

14,114

Noninterest income

1,486

3,203

1,976

6,665

Noninterest expenses

11,501

2,609

1,130

15,240

Income before income taxes

4,099

594

846

5,539

Income tax expense

805

125

178

1,108

Net income

$        3,294

$        469

$         668

$        4,431

Total assets

$    941,294

$     5,141

$    13,142

$    959,577

Six months ended June 30, 2021

Net interest income

$      13,458

$            -

$              -

$      13,458

Provision for loan losses

-

-

-

-

Net interest income after provision for loan losses

13,458

-

-

13,458

Noninterest income

1,399

4,084

-

5,483

Noninterest expenses

11,209

2,917

-

14,126

Income before income taxes

3,648

1,167

-

4,815

Income tax expense

721

245

-

966

Net income

$        2,927

$        922

$              -

$        3,849

Total assets

$    901,350

$     7,014

$              -

$    908,364