Bank of the James Financial Group, Inc. (the “Company”)
(NASDAQ:BOTJ), the parent company of Bank of the James, a
full-service commercial and retail bank serving Region 2000 (the
greater Lynchburg MSA), and the Blacksburg, Charlottesville,
Harrisonburg, Lexington, and Roanoke, Virginia markets, today
announced unaudited results for the three months and six months
ended June 30, 2020.
Net income for the three months ended June 30,
2020 was $821,000 or $0.19 per diluted share, compared with $1.38
million or $0.31 per diluted share for the three months ended June
30, 2019. Net income for the six months ended June 30, 2020 was
$1.82 million or $0.42 per diluted share, compared with $2.61
million or $0.60 per diluted share for the six months ended June
30, 2019.
Highlights
- Net income in the second quarter and first half of 2020
reflected noninterest expenses that included an additional $245,000
in compensation to employees for their work implementing the PPP.
Additionally, in the second quarter the Company expensed
approximately $750,000 related to an early retirement plan that was
previously announced.
- Loans receivable, net of the allowance for loan losses, were
$623.56 million at June 30, 2020 compared with $573.27 million at
December 31, 2019. The increase primarily reflects the addition of
$68 million in government-guaranteed Payroll Protection Plan
loans.
- Commercial loans demonstrated stability and continued strong
credit quality, and construction continued to be an active lending
sector for the Company.
- Nonperforming loans increased as of June 30, 2020, primarily
reflecting one relationship of approximately $3.3 million.
Management anticipates a significant curtailment of the loan
balance upon the sale of the collateral. The Bank has entered
into a contract for the sale of the collateral, and the sale is
scheduled to close later in the third quarter.
- Interest income from loans in the second quarter of 2020 was
$6.7 million compared with $6.8 million in the second quarter of
2019 and increased to $13.7 million in the first half of 2020
compared with $13.5 million in the first half of 2019, primarily
reflecting loan growth.
- Continuing strong residential mortgage origination, which
generates income from gains on loan sales to the secondary market,
contributed significantly to increased total noninterest income,
which was $2.8 million in the second quarter of 2020 compared with
$1.7 million a year earlier. In the first half of 2020, total
noninterest income was $5.0 million, up from $2.9 million a year
earlier, reflecting robust residential mortgage origination and
growth in fee income from corporate treasury services and other
fees.
- Total deposits were $746.0 million at June 30, 2020 compared
with $649.5 million at December 31, 2019. The increase reflects
increased core deposits (noninterest-bearing demand, NOW, savings
and money market accounts) as customers maintained higher balances,
attributable in part to PPP loan funds that had yet to be
deployed.
- Total stockholders’ equity increased to $64.5 million at June
30, 2020 compared with $61.4 million at December 31, 2019. Tangible
book value per share was $14.86 at June 30, 2020 compared with
$14.10 per share at December 31, 2019.
- On July 21, 2020 the Company’s board of directors approved a
$0.07 per share dividend payable to stockholders of record on
September 4, 2020, to be paid on September 18, 2020.
- Subsequent to the close of the second quarter of 2020, the
Company announced on July 8, 2020 that it completed a private
placement of an unregistered debt offering of $10.05 million at a
3.25% interest rate. Of that amount, $5 million was used to retire
an earlier private placement carrying a higher rate.
- Consistent with the previously filed Form 10-Q for the quarter
ended March 31, 2020, the Company again anticipates expanded
disclosure related to business sectors and credit quality in its
Form 10-Q Quarterly Report covering the three and six month periods
ended June 30, 2020 to be filed with the Securities and Exchange
Commission.
Robert R. Chapman III, President and CEO, commented: “Although
COVID-19 and the subsequent economic slowdown present numerous
challenges, we believe the Company delivered a positive financial
performance. We focused on being responsive and pro-active in a
fluid economic and health-conscious situation, and we will continue
to do so.
“We appreciate our team’s dedication and commitment to serving
clients safely and professionally, and to keeping operations
running smoothly. We implemented extensive practices to protect the
health and safety of employees and customers and continued
operating consistently, while recognizing that the considerable
presence of COVID-19 still presents challenges.
“During the second quarter, Bank of the James processed and
closed approximately $68 million in Payroll Protection Plan (PPP)
loans to more than 500 small businesses, affecting approximately
9000 employees and families. We believe we accomplished this
process quickly and efficiently so businesses could put funding to
work immediately. Recognizing the exceptional dedication of our
team, we provided approximately $245,000 in financial rewards to
those who worked so hard to implement the PPP program, and to our
essential employees who put in extra effort to serve customers and
provide operational support therefore offsetting the challenges of
social distancing and working from home.
“Margins, returns and interest income were impacted by expected
business slowdowns and the issuance of low-interest PPP loans.
Importantly, the Bank did not experience any unusual pressure on
deposit balances or liquidity positions as a result of COVID-19. We
believe the Company’s fundamentals are strong. We have prepared for
this period by increasing capital resources, expanding reserves and
provisioning for potential loan losses, building cash reserves, and
more.
“Our second quarter financial performance was encouraging, and
we were able to build shareholder value and pay a dividend to
shareholders. We believe the Company is positioned to meet the
financial challenges and uncertainty ahead.”
Second Quarter, First Half of 2020 Operational
Review
Total interest income was $7.1 million in the second quarter of
2020 compared with $7.4 million a year earlier. Interest expense
was $1.2 million in the second quarter of 2020 compared with $1.2
million a year earlier. Although interest rates declined,
interest expense remained constant because of a larger deposit base
and increased core deposits. The rate paid on liabilities in the
second quarter of 2020 was 0.76% compared with 0.93% a year
earlier.
Net interest income after provision for loan losses was $5.2
million for the three months ended June 30, 2020 compared with $6.0
million the previous year.
The average rate earned on loans was 4.33% in the second quarter
of 2020 compared with 4.97% a year earlier, and the net interest
margin was 3.13% compared with 3.82%, primarily reflecting the
impact of the lower-yielding PPP loans.
For the six months of 2020, total interest income was $14.6
million compared with $14.6 million in the first six months of
2019. Total interest expense was $2.5 million in the first half of
2020 compared with $2.3 million a year earlier. For the first six
months of 2020, net interest income after provision for loan losses
was $10.4 million compared with $12.0 million a year earlier,
primarily reflecting slower commercial loan activity and an
increased loan loss provision. The net interest margin was 3.37% in
the first half of 2020 compared with 3.87% a year earlier.
The provision for loan losses was $760,000 and $1,648,000 in the
three and six months ended June 30, 2020 compared with $116,000 and
$326,000 for the same period a year earlier. The increase
primarily reflects increased qualitative allocations related to the
COVID-19 pandemic as well as a $300,000 specific reserve for the
large loan relationship previously mentioned as migrating to a
nonperforming status during the quarter. Of the $1,648,000 in
provision in the first six months of 2020, approximately $1,048,000
is attributed to qualitative factors related to the COVID-19
pandemic and its effect on economic conditions, loan concentrations
in sectors adversely affected by the pandemic, and loans that have
been granted payment deferrals or have been granted interest only
payment status in the short term.
J. Todd Scruggs, Executive Vice President and CFO, commented:
“The impact of carrying $68 million in PPP loans while also
carrying additional contingent liquidity in the form of Fed funds,
and a Fed rate cut in the second quarter was clearly evident in our
net interest margin and interest rate spread. In general, rates on
non-PPP loans have been relatively stable. We don’t anticipate
carrying PPP loans for an extended period, so we expect to return
to more normalized margins as the PPP program begins to wind down
and loan forgiveness begins.”
Noninterest income, including gains from the sale of residential
mortgages to the secondary market, revenue contributions from BOTJ
Investment Services, and income from the Bank’s line of treasury
management services for commercial customers was $2.8 million in
the second quarter of 2020, up from $1.7 million in the second
quarter of 2019. In the first half of 2020, total noninterest
income was $5.0 million compared with $2.9 million in the first
half of 2019. The increase in noninterest income was also
driven by gains on sales of available-for-sale securities of
$213,000 and $644,000 respectively for the three and six months of
2020.
Noninterest expense for the three months and six months ended
June 30, 2020 increased compared with the previous year, reflecting
personnel expenses that included performance-based compensation and
the one-time early retirement expense. Employee salaries of
approximately $400,000 were deferred in the current quarter related
to PPP loan originations which partially offset the additional
expenses. These deferred costs are being recognized over the
remaining lives of the PPP loans as a component of interest income
along with the related origination fees. This level of
deferred origination costs is not expected for future
quarters and the recognition of the deferred fees and costs
in income will be accelerated upon forgiveness or repayment of the
PPP loans. Occupancy, supplies and marketing costs were lower
year-over-year.
In the second quarter of 2020, Return on Average Assets (ROAA)
was 0.41% compared with 0.80% a year earlier and Return on Average
Equity (ROAE) of 5.33% compared with 9.47% a year earlier. In the
first half of 2020, ROAA was 0.47% compared with 0.77% a year
earlier and ROAE was 5.95% compared with 9.11% a year earlier. The
Company’s ROAA decline in the 2020 periods primarily reflected the
growth of assets and the higher loan loss provision.
Balance Sheet Review: Sound Asset Quality,
Liquidity
Total assets were $827.1 million at June 30, 2020 compared with
$725.4 million at December 31, 2019 and $690.1 million at June 30,
2019. While the addition of PPP loans in the second quarter of 2020
resulted in increased assets, a leading driver of year-over-year
balance sheet growth was commercial, construction and
non-residential loan growth. Loans, net of provision for loan
losses were $623.6 million at June 30, 2020, compared with $573.3
million at December 31, 2019 and $552.0 million at June 30,
2019.
Michael A. Syrek, Executive Vice President and Chief Loan
Officer, commented: “Understandably, new commercial lending
activity slowed in the second quarter of 2020. Beginning in
February, we have focused on communicating with clients to help
them prepare for the potential impact of COVID-19 and economic
slowdowns on their businesses.
“While economic conditions have impacted clients, most have
maintained stability in their operations. We have worked remotely
and maintained strong relationships to continue providing financial
solutions. A number of clients have utilized PPP loans to meet
operating cash and payroll requirements as an alternative to
utilizing lines of credit, and in our eyes that has been a very
appropriate use of the PPP funding we helped provide.
“We are cautiously optimistic about the economic health of our
served markets and clients. We serve markets that include several
major colleges and universities, so we are closely monitoring
decisions regarding fall attendance and the potential impact on
clients. We remain flexible and responsive to client needs in what
continues to be a fluid situation.”
Loans held-for-sale were $6.1 million at June 30, 2020, up from
$4.2 million at December 31, 2019 and $4.4 million at June 30,
2019, primarily reflecting strong residential mortgage origination
activity and placement of residential mortgages in the secondary
market.
Brian Cash, President of Bank of the James’ Mortgage Division,
explained: “Despite remarkable volatility, uncertainty and change
in both the mortgage and housing industries, our growth
accelerated. I credit the amazing dedication, determination and
heart of our team to serve regardless of the circumstances. The
majority of mortgage originations have been purchase mortgages as
housing markets have been relatively active in light of COVID-19
impact. Well-established processes, a commitment to service and
strong technological capabilities have enabled us to meet the
residential mortgage needs of our markets in a time that demands
social distancing and increased electronic operation.”
Loans, net of allowance for loan losses of $6.2 million, were
$623.56 million at June 30, 2020. At December 31, 2019 loans, net
of allowance of $4.8 million, were $573.27 million. The
company increased its loan allowance in the first and second
quarters of 2020, primarily reflecting the Company’s ongoing
consideration of the pandemic in the development of the allowance
estimate as mentioned above.
Total deposits at June 30, 2020 were $746.00 million, compared
with $649.50 million at December 31, 2019. Increased demand
deposits accounted for the growth attributed in part to retention
of PPP funds not yet deployed by businesses, which now have
approximately 24 months to utilize the funds.
Asset quality remained strong, with a ratio of nonperforming
loans to total loans of 0.82% at June 30, 2020. The allowance for
loan losses to total loans was 0.98% at June 30, 2020, representing
an increase from prior quarters as the Company added to its loan
loss reserve. The ratio of the allowance to total loans, excluding
the guaranteed PPP loans was approximately 1.11% at June 30,
2020. The Company’s allowance for loan losses to
nonperforming loans was 119% at June 30, 2020.
Chapman concluded: “As we continue to navigate a changing and
uncertain environment, we are focused on maintaining liquidity,
continued capital strength, and diligent credit quality monitoring.
We are committed to partnering with clients to provide the services
and financial solutions to meet the future with confidence.
We are also committed to our served communities and are grateful to
have been able to donate this quarter approximately $50,000 to
various non-profits that focus on providing food, clothing and
shelter.
About the Company
Bank of the James, a wholly owned subsidiary of Bank of the
James Financial Group, Inc. opened for business in July 1999 and is
headquartered in Lynchburg, Virginia. The bank currently services
customers in Virginia from offices located in Altavista, Amherst,
Appomattox, Bedford, Blacksburg, Charlottesville, Forest,
Harrisonburg, Lexington, Lynchburg, Madison Heights, Roanoke, and
Rustburg. The bank offers full investment and insurance services
through its BOTJ Investment Services division and BOTJ Insurance,
Inc. subsidiary. The bank provides mortgage loan origination
through Bank of the James Mortgage, a division of Bank of the
James. Bank of the James Financial Group, Inc. common stock is
listed under the symbol “BOTJ” on the NASDAQ Stock Market,
LLC. Additional information on the Company is available at
www.bankofthejames.bank.
Cautionary Statement Regarding Forward-Looking
Statements
This press release contains statements that constitute
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. The words "believe,"
"estimate," "expect," "intend," "anticipate," "plan" and similar
expressions and variations thereof identify certain of such
forward-looking statements which speak only as of the dates on
which they were made. Bank of the James Financial Group, Inc. (the
"Company") undertakes no obligation to publicly update or revise
any forward-looking statements, whether as a result of new
information, future events, or otherwise. Readers are cautioned
that any such forward-looking statements are not guarantees of
future performance and involve risks and uncertainties, and that
actual results may differ materially from those indicated in the
forward-looking statements as a result of various factors. Such
factors include, but are not limited to, competition, general
economic conditions, potential changes in interest rates, the
effect of the COVID-19 pandemic, and changes in the value of real
estate securing loans made by Bank of the James (the "Bank"), a
subsidiary of the Company. Additional information concerning
factors that could cause actual results to materially differ from
those in the forward-looking statements is contained in the
Company's filings with the Securities and Exchange Commission and
previously filed by the Bank (as predecessor of the Company) with
the Federal Reserve Board.
CONTACT: J. Todd Scruggs, Executive Vice President and Chief
Financial Officer (434) 846-2000.tscruggs@bankofthejames.com
FINANCIAL STATEMENTS FOLLOW
Bank of the James Financial Group, Inc. and
SubsidiariesDollar amounts in thousands, except
per share
dataunaudited
|
Selected Data: |
ThreemonthsendingJun
30,2020 |
ThreemonthsendingJun
30,2019 |
Change |
YeartodateJun
30,2020 |
YeartodateJun
30,2019 |
Change |
|
Interest income |
$ |
7,081 |
$ |
7,390 |
|
-4.18 |
% |
$ |
14,569 |
$ |
14,624 |
|
-0.38 |
% |
|
Interest expense |
|
1,163 |
|
1,238 |
|
-6.06 |
% |
|
2,515 |
|
2,342 |
|
7.39 |
% |
|
Net interest income |
|
5,918 |
|
6,152 |
|
-3.80 |
% |
|
12,054 |
|
12,282 |
|
-1.86 |
% |
|
Provision for loan losses |
|
760 |
|
116 |
|
555.17 |
% |
|
1,648 |
|
326 |
|
405.52 |
% |
|
Noninterest income |
|
2,789 |
|
1,659 |
|
68.11 |
% |
|
4,975 |
|
2,878 |
|
72.86 |
% |
|
Noninterest expense |
|
6,935 |
|
5,975 |
|
16.07 |
% |
|
13,132 |
|
11,574 |
|
13.46 |
% |
|
Income taxes |
|
191 |
|
343 |
|
-44.31 |
% |
|
433 |
|
649 |
|
-33.28 |
% |
|
Net income |
|
821 |
|
1,377 |
|
-40.38 |
% |
|
1,816 |
|
2,611 |
|
-30.45 |
% |
|
Weighted average shares outstanding - basic |
|
4,339,436 |
|
4,378,436 |
|
(39,000 |
) |
|
4,343,738 |
|
4,378,436 |
|
(34,698 |
) |
|
Weighted average shares outstanding – diluted |
|
4,339,436 |
|
4,383,021 |
|
(43,585 |
) |
|
4,343,738 |
|
4,381,994 |
|
(38,256 |
) |
|
Basic net income per share |
$ |
0.19 |
$ |
0.31 |
$ |
(0.12 |
) |
$ |
0.42 |
$ |
0.60 |
$ |
(0.18 |
) |
|
Fully diluted net income per share |
$ |
0.19 |
$ |
0.31 |
$ |
(0.12 |
) |
$ |
0.42 |
$ |
0.60 |
$ |
(0.18 |
) |
|
Balance Sheet at period end: |
Jun 30,2020 |
Dec 31,2019 |
Change |
Jun 30,2019 |
Dec 31,2018 |
Change |
|
Loans, net |
$ |
623,564 |
$ |
573,274 |
|
8.77 |
% |
$ |
551,974 |
$ |
530,016 |
|
4.14 |
% |
|
Loans held for sale |
|
6,098 |
|
4,221 |
|
44.47 |
% |
|
4,443 |
|
1,670 |
|
166.05 |
% |
|
Total securities |
|
58,751 |
|
63,343 |
|
-7.25 |
% |
|
57,512 |
|
56,427 |
|
1.92 |
% |
|
Total deposits |
|
745,986 |
|
649,459 |
|
14.86 |
% |
|
617,184 |
|
612,043 |
|
0.84 |
% |
|
Stockholders' equity |
|
64,465 |
|
61,445 |
|
4.91 |
% |
|
59,249 |
|
55,143 |
|
7.45 |
% |
|
Total assets |
|
827,098 |
|
725,394 |
|
14.02 |
% |
|
690,095 |
|
674,897 |
|
2.25 |
% |
|
Shares outstanding |
|
4,339,436 |
|
4,357,436 |
|
(18,000 |
) |
|
4,378,436 |
|
4,378,436 |
|
- |
|
|
Book value per share |
$ |
14.86 |
$ |
14.10 |
$ |
0.76 |
|
$ |
13.53 |
$ |
12.59 |
$ |
0.94 |
|
|
Daily averages: |
ThreemonthsendingJun
30,2020 |
ThreemonthsendingJun
30,2019 |
Change |
YeartodateJun
30,2020 |
YeartodateJun
30,2019 |
Change |
|
Loans, net |
$ |
620,572 |
$ |
546,162 |
13.62 |
% |
$ |
597,378 |
$ |
537,763 |
11.09 |
% |
|
Loans held for sale |
|
5,653 |
|
3,948 |
43.19 |
% |
|
4,563 |
|
2,981 |
53.07 |
% |
|
Total securities |
|
56,647 |
|
58,214 |
-2.69 |
% |
|
58,296 |
|
58,624 |
-0.56 |
% |
|
Total deposits |
|
731,009 |
|
622,390 |
17.45 |
% |
|
695,436 |
|
618,240 |
12.49 |
% |
|
Stockholders' equity |
|
61,776 |
|
58,295 |
5.97 |
% |
|
61,509 |
|
57,809 |
6.40 |
% |
|
Interest earning assets |
|
759,306 |
|
645,406 |
17.65 |
% |
|
720,305 |
|
640,362 |
12.48 |
% |
|
Interest bearing liabilities |
|
614,343 |
|
535,364 |
14.75 |
% |
|
594,207 |
|
530,953 |
11.91 |
% |
|
Total assets |
|
808,602 |
|
690,637 |
17.08 |
% |
|
772,170 |
|
684,419 |
12.82 |
% |
|
Financial Ratios: |
ThreemonthsendingJun
30,2020 |
ThreemonthsendingJun
30,2019 |
Change |
YeartodateJun
30,2020 |
YeartodateJun
30,2019 |
Change |
|
Return on average assets |
0.41 |
% |
0.80 |
% |
(0.39 |
) |
0.47 |
% |
0.77 |
% |
(0.30 |
) |
|
Return on average equity |
5.33 |
% |
9.47 |
% |
(4.14 |
) |
5.95 |
% |
9.11 |
% |
(3.16 |
) |
|
Net interest margin |
3.13 |
% |
3.82 |
% |
(0.69 |
) |
3.37 |
% |
3.87 |
% |
(0.50 |
) |
|
Efficiency ratio |
79.65 |
% |
76.49 |
% |
3.16 |
|
77.12 |
% |
76.35 |
% |
0.77 |
|
|
Average equity to average assets |
7.64 |
% |
8.44 |
% |
(0.80 |
) |
7.97 |
% |
8.45 |
% |
(0.48 |
) |
|
Allowance for loan losses: |
ThreemonthsendingJun
30,2020 |
ThreemonthsendingJun
30,2019 |
Change |
YeartodateJun
30,2020 |
YeartodateJun
30,2019 |
Change |
|
Beginning balance |
$ |
5,474 |
|
$ |
4,673 |
|
17.14 |
% |
$ |
4,829 |
|
$ |
4,581 |
|
5.41 |
% |
|
Provision for losses |
|
760 |
|
|
116 |
|
555.17 |
% |
|
1,648 |
|
|
326 |
|
405.52 |
% |
|
Charge-offs |
|
(79 |
) |
|
(86 |
) |
-8.14 |
% |
|
(339 |
) |
|
(219 |
) |
54.79 |
% |
|
Recoveries |
|
38 |
|
|
21 |
|
80.95 |
% |
|
55 |
|
|
36 |
|
52.78 |
% |
|
Ending balance |
|
6,193 |
|
|
4,724 |
|
31.10 |
% |
|
6,193 |
|
|
4,724 |
|
31.10 |
% |
|
Nonperforming assets: |
Jun 30,2020 |
Dec 31,2019 |
Change |
Jun 30,2019 |
Dec 31,2018 |
Change |
|
Total nonperforming loans |
$ |
5,186 |
$ |
1,301 |
298.62 |
% |
$ |
3,485 |
$ |
2,939 |
18.58 |
% |
|
Other real estate owned |
|
1,616 |
|
2,339 |
-30.91 |
% |
|
2,413 |
|
2,431 |
-0.74 |
% |
|
Total nonperforming assets |
|
6,802 |
|
3,640 |
86.87 |
% |
|
5,898 |
|
5,370 |
9.83 |
% |
|
Troubled debt restructurings - (performing portion) |
|
402 |
|
410 |
-1.95 |
% |
|
418 |
|
424 |
-1.42 |
% |
|
|
Jun 30, |
Dec 31, |
|
Jun 30, |
Dec 31, |
|
|
Asset quality ratios: |
2020 |
2019 |
Change |
2019 |
2018 |
Change |
|
Nonperforming loans tototal loans |
0.82 |
% |
0.23 |
% |
0.60 |
|
0.63 |
% |
0.55 |
% |
0.08 |
|
|
Allowance for loan lossesto total loans |
0.98 |
%* |
0.84 |
% |
0.15 |
|
0.85 |
% |
0.86 |
% |
(0.01 |
) |
|
Allowance for loan lossesto nonperforming loans |
119.42 |
% |
371.18 |
% |
(251.76 |
) |
135.55 |
% |
155.87 |
% |
(20.32 |
) |
*The allowance for loan losses to total loans ratio excluding
the SBA guaranteed PPP loans is approximately 1.11%.
Bank of the James Financial Group, Inc. and
SubsidiariesConsolidated Balance
Sheets(dollar amounts in thousands, except per
share amounts)
| |
(unaudited) |
|
|
| Assets |
6/30/2020 |
|
12/31/2019 |
|
Cash and due from banks |
$ |
30,669 |
|
$ |
30,794 |
|
| Federal funds sold |
|
60,131 |
|
|
8,317 |
|
|
Total cash and cash equivalents |
|
90,800 |
|
|
39,111 |
|
| |
|
|
|
| Securities held-to-maturity
(fair value of $4,283 in 2020 and $3,861 in 2019) |
|
3,679 |
|
|
3,688 |
|
| Securities available-for-sale,
at fair value |
|
55,072 |
|
|
59,655 |
|
| Restricted stock, at cost |
|
1,551 |
|
|
1,506 |
|
| Loans, net of allowance for
loan losses of $6,193 in 2020 and $4,829 in 2019 |
|
623,564 |
|
|
573,274 |
|
| Loans held for sale |
|
6,098 |
|
|
4,221 |
|
| Premises and equipment,
net |
|
16,193 |
|
|
16,297 |
|
| Software, net |
|
429 |
|
|
401 |
|
| Interest receivable |
|
2,505 |
|
|
1,866 |
|
| Cash value - bank owned life
insurance |
|
16,387 |
|
|
13,686 |
|
| Other real estate owned |
|
1,616 |
|
|
2,339 |
|
| Deferred tax asset |
|
601 |
|
|
1,177 |
|
| Other assets |
|
8,603 |
|
|
8,173 |
|
|
Total assets |
$ |
827,098 |
|
$ |
725,394 |
|
| |
|
|
|
| Liabilities and
Stockholders' Equity |
|
|
|
| Deposits |
|
|
|
|
Noninterest bearing demand |
|
134,523 |
|
|
93,936 |
|
|
NOW, money market and savings |
|
424,842 |
|
|
362,821 |
|
|
Time |
|
186,621 |
|
|
192,702 |
|
| Total deposits |
|
745,986 |
|
|
649,459 |
|
| |
|
|
|
| Capital notes |
|
7,275 |
|
|
5,000 |
|
| Income taxes payable |
|
107 |
|
|
124 |
|
| Interest payable |
|
172 |
|
|
173 |
|
| Other liabilities |
|
9,093 |
|
|
9,193 |
|
|
Total liabilities |
$ |
762,633 |
|
$ |
663,949 |
|
| |
|
|
|
| Stockholders' equity |
|
|
|
|
Common stock $2.14 par value; authorized 10,000,000 shares; issued
and outstanding |
|
|
|
|
4,339,436 and 4,357,436 as of June 30, 2020 and December 31,
2019 |
|
9,286 |
|
|
9,325 |
|
|
Additional paid-in-capital |
|
30,989 |
|
|
31,225 |
|
|
Accumulated other comprehensive income (loss) |
|
2,081 |
|
|
(5 |
) |
|
Retained earnings |
|
22,109 |
|
|
20,900 |
|
| Total stockholders'
equity |
$ |
64,465 |
|
$ |
61,445 |
|
| |
|
|
|
| Total liabilities and
stockholders' equity |
$ |
827,098 |
|
$ |
725,394 |
|
| |
|
|
|
|
|
|
Bank of the James Financial Group, Inc. and
SubsidiariesConsolidated Statements of
Income(dollar amounts in thousands, except per
share amounts)(unaudited)
| |
|
|
|
|
|
|
|
| |
For the Three Months |
|
For the Six Months |
| |
Ended June 30, |
|
Ended June 30, |
|
Interest Income |
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Loans |
$ |
6,732 |
|
$ |
6,816 |
|
$ |
13,737 |
|
$ |
13,470 |
|
Securities |
|
|
|
|
|
|
|
|
US Government and agency obligations |
|
151 |
|
|
184 |
|
|
338 |
|
|
369 |
|
Mortgage backed securities |
|
55 |
|
|
56 |
|
|
114 |
|
|
117 |
|
Municipals |
|
80 |
|
|
81 |
|
|
155 |
|
|
162 |
|
Dividends |
|
24 |
|
|
33 |
|
|
33 |
|
|
51 |
|
Other (Corporates) |
|
23 |
|
|
24 |
|
|
46 |
|
|
47 |
|
Interest bearing deposits |
|
6 |
|
|
74 |
|
|
70 |
|
|
165 |
|
Federal Funds sold |
|
10 |
|
|
122 |
|
|
76 |
|
|
243 |
|
Total interest income |
|
7,081 |
|
|
7,390 |
|
|
14,569 |
|
|
14,624 |
| |
|
|
|
|
|
|
|
| Interest
Expense |
|
|
|
|
|
|
|
|
Deposits |
|
|
|
|
|
|
|
|
NOW, money market savings |
|
166 |
|
|
362 |
|
|
492 |
|
|
668 |
|
Time Deposits |
|
864 |
|
|
750 |
|
|
1,761 |
|
|
1,418 |
|
Finance leases |
|
28 |
|
|
- |
|
|
58 |
|
|
- |
|
Brokered time deposits |
|
48 |
|
|
76 |
|
|
97 |
|
|
156 |
|
Capital notes |
|
57 |
|
|
50 |
|
|
107 |
|
|
100 |
|
Total interest expense |
|
1,163 |
|
|
1,238 |
|
|
2,515 |
|
|
2,342 |
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
5,918 |
|
|
6,152 |
|
|
12,054 |
|
|
12,282 |
| |
|
|
|
|
|
|
|
| Provision for loan losses |
|
760 |
|
|
116 |
|
|
1,648 |
|
|
326 |
| |
|
|
|
|
|
|
|
|
Net interest income after provision for loan
losses |
|
5,158 |
|
|
6,036 |
|
|
10,406 |
|
|
11,956 |
| |
|
|
|
|
|
|
|
| Noninterest
income |
|
|
|
|
|
|
|
|
Gains on sale of loans held for sale |
|
1,950 |
|
|
1,075 |
|
|
3,127 |
|
|
1,766 |
|
Service charges, fees and commissions |
|
514 |
|
|
461 |
|
|
1,002 |
|
|
900 |
|
Life insurance income |
|
110 |
|
|
84 |
|
|
188 |
|
|
167 |
|
Other |
|
2 |
|
|
39 |
|
|
14 |
|
|
45 |
|
Gain on sales of available-for-sale securities |
|
213 |
|
|
- |
|
|
644 |
|
|
- |
|
|
|
|
|
|
|
|
|
|
Total noninterest income |
|
2,789 |
|
|
1,659 |
|
|
4,975 |
|
|
2,878 |
| |
|
|
|
|
|
|
|
| Noninterest
expenses |
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
3,973 |
|
|
3,153 |
|
|
7,327 |
|
|
6,081 |
|
Occupancy |
|
382 |
|
|
417 |
|
|
818 |
|
|
838 |
|
Equipment |
|
569 |
|
|
536 |
|
|
1,178 |
|
|
994 |
|
Supplies |
|
106 |
|
|
142 |
|
|
233 |
|
|
304 |
|
Professional, data processing, and other outside expense |
|
970 |
|
|
859 |
|
|
1,894 |
|
|
1,674 |
|
Marketing |
|
179 |
|
|
276 |
|
|
315 |
|
|
421 |
|
Credit expense |
|
276 |
|
|
156 |
|
|
472 |
|
|
283 |
|
Other real estate expenses |
|
21 |
|
|
1 |
|
|
120 |
|
|
140 |
|
FDIC insurance expense |
|
87 |
|
|
94 |
|
|
144 |
|
|
188 |
|
Other |
|
372 |
|
|
341 |
|
|
631 |
|
|
651 |
|
Total noninterest expenses |
|
6,935 |
|
|
5,975 |
|
|
13,132 |
|
|
11,574 |
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
1,012 |
|
|
1,720 |
|
|
2,249 |
|
|
3,260 |
|
|
|
|
|
|
|
|
|
|
Income tax expense |
|
191 |
|
|
343 |
|
|
433 |
|
|
649 |
|
|
|
|
|
|
|
|
|
|
Net Income |
$ |
821 |
|
$ |
1,377 |
|
$ |
1,816 |
|
$ |
2,611 |
| |
|
|
|
|
|
|
|
| Weighted average shares
outstanding - basic |
|
4,339,436 |
|
|
4,378,436 |
|
|
4,343,738 |
|
|
4,378,436 |
| |
|
|
|
|
|
|
|
| Weighted average shares
outstanding - diluted |
|
4,339,436 |
|
|
4,383,021 |
|
|
4,343,738 |
|
|
4,381,994 |
| |
|
|
|
|
|
|
|
| Net income per common share -
basic |
$ |
0.19 |
|
$ |
0.31 |
|
$ |
0.42 |
|
$ |
0.60 |
| |
|
|
|
|
|
|
|
| Net income per common share -
diluted |
$ |
0.19 |
|
$ |
0.31 |
|
$ |
0.42 |
|
$ |
0.60 |
Bank of the James Financ... (NASDAQ:BOTJ)
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