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Business Segments
 9 Months Ended
Sep. 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 nine months ended September 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 September 30, 2022

Net interest income

$        7,900

$            -

$              -

$        7,900

Recovery of loan losses

(300)

-

-

(300)

Net interest income after recovery of loan losses

8,200

-

-

8,200

Noninterest income

1,423

1,472

959

3,854

Noninterest expenses

7,095

1,280

504

8,879

Income before income taxes

2,528

192

455

3,175

Income tax expense

505

40

56

601

Net income

$        2,023

$        152

$         399

$        2,574

Total assets

$    944,890

$     4,081

$    13,599

$    962,570

For the three months ended September 30, 2021

Net interest income

$        6,822

$            -

$              -

$        6,822

Provision for loan losses

-

-

-

-

Net interest income after provision for loan losses

6,822

-

-

6,822

Noninterest income

731

2,091

-

2,822

Noninterest expenses

5,776

1,522

-

7,298

Income before income taxes

1,777

569

-

2,346

Income tax expense

345

120

-

465

Net income

$        1,432

$        449

$              -

$        1,881

Total assets

$    935,482

$     7,149

$              -

$    942,631

Investment

Community

Advisory

Banking

Mortgage

Services

Total

For the nine months ended September 30, 2022

Net interest income

$      21,414

$            -

$              -

$      21,414

Recovery of loan losses

(900)

-

-

(900)

Net interest income after recovery of loan losses

22,314

-

-

22,314

Noninterest income

2,909

4,675

2,935

10,519

Noninterest expenses

18,596

3,889

1,634

24,119

Income before income taxes

6,627

786

1,301

8,714

Income tax expense

1,310

165

234

1,709

Net income

$        5,317

$        621

$      1,067

$        7,005

Total assets

$    944,890

$     4,081

$    13,599

$    962,570

For the nine months ended September 30, 2021

Net interest income

$      20,280

$            -

$              -

$      20,280

Provision for loan losses

-

-

-

-

Net interest income after provision for loan losses

20,280

-

-

20,280

Noninterest income

2,130

6,175

-

8,305

Noninterest expenses

16,985

4,439

-

21,424

Income before income taxes

5,425

1,736

-

7,161

Income tax expense

1,066

365

-

1,431

Net income

$        4,359

$     1,371

$              -

$        5,730

Total assets

$    935,482

$     7,149

$              -

$    942,631