Business Segments

9 Months Ended

Sep. 30, 2023

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, 2023 and 2022 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, 2023
Net interest income	$        7,364	$            -	$              -	$        7,364
Recovery of credit losses	(164)	-	-	(164)
Net interest income after recovery of 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
For the three months ended September 30, 2022
Net interest income	$        7,900	$            -	$              -	$        7,900
Recovery of credit losses	(300)	-	-	(300)
Net interest income after recovery of credit 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
			Investment
	Community		Advisory
	Banking	Mortgage	Services	Total
For the nine months ended September 30, 2023
Net interest income	$      22,351	$            -	$              -	$      22,351
Recovery of credit losses	(278)	-	-	(278)
Net interest income after recovery of 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
For the nine months ended September 30, 2022
Net interest income	$      21,414	$            -	$              -	$      21,414
Recovery of credit losses	(900)	-	-	(900)
Net interest income after recovery of credit 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