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Business Segments
9 Months Ended
Sep. 30, 2019
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, 2019 and 2018 was as follows (dollars in thousands):

Note 8 – Business Segments (continued)











 

 

 

 

 

Business Segments

 

 

 

 

 



 

 

 

 

 



Community

 

 

 

 



Banking

 

Mortgage

 

Total

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



 

 

 

 

 

Nine months ended September 30, 2018

 

 

 

 

 

   Net interest income

$       17,124

 

$            -

 

$      17,124

   Provision for loan losses

527 

 

 -

 

527 

   Net interest income after provision for loan losses

16,597 

 

 -

 

16,597 

   Noninterest income

1,684 

 

2,262 

 

3,946 

   Noninterest expenses

13,922 

 

1,845 

 

15,767 

   Income before income taxes

4,359 

 

417 

 

4,776 

   Income tax expense

891 

 

58 

 

949 

     Net income

$         3,468

 

$        359

 

$        3,827

     Total assets

$     665,698

 

$     2,740

 

$    668,438



 

 

 

 

 



Community

 

 

 

 



Banking

 

Mortgage

 

Total

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



 

 

 

 

 

Three months ended September 30, 2018

 

 

 

 

 

   Net interest income

$         5,990

 

$            -

 

$        5,990

   Provision for loan losses

190 

 

 -

 

190 

   Net interest income after provision for loan losses

5,800 

 

 -

 

5,800 

   Noninterest income

552 

 

767 

 

1,319 

   Noninterest expenses

4,715 

 

649 

 

5,364 

   Income before income taxes

1,637 

 

118 

 

1,755 

   Income tax expense

345 

 

 

351 

     Net income

$         1,292

 

$        112

 

$        1,404

     Total assets

$     665,698

 

$     2,740

 

$    668,438