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Business Segments
 9 Months Ended
Sep. 30, 2024
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, 2024 and 2023 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, 2024

Net interest income

$        7,509

$            -

$              -

$            7,509

Provision for credit losses

92

-

-

92

Net interest income after recovery of provision for credit losses

7,417

-

-

7,417

Noninterest income

1,034

1,326

1,463

3,823

Noninterest expenses

7,029

967

780

8,776

Income before income taxes

1,422

359

683

2,464

Income tax expense

255

76

143

474

Net income

$        1,167

$        283

$         540

$            1,990

Total assets

$    993,406

$     3,714

$    10,943

$     1,008,063

For the three months ended September 30, 2023

Net interest income

$        7,364

$            -

$              -

$            7,364

Recovery of provision for credit losses

(164)

-

-

(164)

Net interest income after recovery of provision for credit losses

7,528

-

-

7,528

Noninterest income

1,162

989

1,050

3,201

Noninterest expenses

6,661

1,073

406

8,140

Income (loss) before income taxes

2,029

(84)

644

2,589

Income tax expense (benefit)

393

(17)

135

511

Net income (loss)

$        1,636

$         (67)

$         509

$            2,078

Total assets

$    945,407

$     3,781

$    11,699

$        960,887

Investment

Community

Advisory

Banking

Mortgage

Services

Total

For the nine months ended September 30, 2024

Net interest income

$      21,550

$            -

$              -

$          21,550

Recovery of provision for credit losses

(584)

-

-

(584)

Net interest income after recovery of provision for credit losses

22,134

-

-

22,134

Noninterest income

4,212

3,526

3,583

11,321

Noninterest expenses

20,815

2,785

2,002

25,602

Income before income taxes

5,531

741

1,581

7,853

Income tax expense

1,039

156

332

1,527

Net income

$        4,492

$        585

$      1,249

$            6,326

Total assets

$    993,406

$     3,714

$    10,943

$     1,008,063

For the nine months ended September 30, 2023

Net interest income

$      22,351

$            -

$              -

$          22,351

Recovery of provision for credit losses

(278)

-

-

(278)

Net interest income after recovery of provision for credit losses

22,629

-

-

22,629

Noninterest income

3,526

3,065

3,098

9,689

Noninterest expenses

19,751

2,705

1,635

24,091

Income before income taxes

6,404

360

1,463

8,227

Income tax expense

1,248

76

307

1,631

Net income

$        5,156

$        284

$      1,156

$            6,596

Total assets

$    945,407

$     3,781

$    11,699

$        960,887