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 nine months
ended September 30, 2020.
Net income for the three months ended September
30, 2020 was $1.45 million or $0.34 per diluted share, compared
with $1.47 million or $0.34 per diluted share for the three months
ended September 30, 2019. Net income for the nine months ended
September 30, 2020 was $3.27 million or $0.75 per diluted share,
compared with $4.09 million or $0.93 per diluted share for the nine
months ended September 30, 2019.
Highlights
- Net income in the third quarter and nine months of 2020
reflected strong noninterest income. Residential mortgage
origination, which generates noninterest income from gains on loan
sales to the secondary market, contributed significantly to
increased total noninterest income, which was $3.06 million in the
third quarter of 2020 compared with $2.16 million a year earlier.
In the nine months of 2020, total noninterest income was $8.04
million, up from $5.04 million a year earlier, reflecting increased
gains on sales of available-for-sale securities, residential
mortgage origination income, fee income from corporate treasury
services and other fees.
- Net interest income was $6.20 million in the third quarter of
2020, up from with $6.17 million a year earlier, primarily
reflecting reduced interest expense which was offset by a modest
decline in interest income from commercial lending.
- Loans receivable, net of the allowance for loan losses, were
$616.58 million at September 30, 2020, up 8% from $573.27 million
at December 31, 2019. The increase primarily reflects the addition
of government-guaranteed Payroll Protection Plan (PPP) loans,
relative stability in commercial real estate lending, and continued
strength in commercial construction lending.
- On a consecutive quarter comparison, nonperforming loans
declined sharply to $2.54 million at September 30, 2020 from $5.19
million at June 30, 2020, primarily reflecting recovery of a
previously reported nonaccrual loan and property sale.
- Asset quality remained strong at 0.41% of nonperforming loans
to total loans. Allowance for loan losses to total loans increased
to 1.12% at September 30, 2020 (approximately 1.25% excluding
government-guaranteed PPP loans) from 0.84% at December 31, 2019,
primarily reflecting reserves related to the impact of
COVID-19.
- Total deposits were $763.9 million at September 30, 2020, up
from $746.0 million at June 30, 2020 and $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 not yet to be deployed, increased deposit
relationships, and growth generated by offices opened over the last
several years.
- Total stockholders’ equity was $65.8 million at September 30,
2020 compared with $61.4 million at December 31, 2019. Book value
per share rose to $15.16 per share at September 30, 2020.
- On October 20, 2020 the Company’s board of directors approved a
$0.07 per share dividend payable to stockholders of record on
November 27, 2020, to be paid on December 11, 2020.
- In the third quarter of 2020, the Company completed a private
placement of unregistered debt securities totaling $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 Quarterly
Reports, the Company anticipates expanded disclosure to be filed
with the Securities and Exchange Commission related to business
sectors and credit quality covering the three and nine month
periods ended September 30, 2020.
Robert R. Chapman III, President and CEO, commented: “The
markets we serve throughout the region have proven resilient
despite the challenges and uncertainties presented by the pandemic.
Bank of the James has focused on ensuring the health and safety of
our customers, our employees and the community while continuing to
provide the highest levels of customer service and a personal
approach to retail and business banking that has been our hallmark
for more than 20 years.
“We have seen the positive impact of making PPP loans to small
and medium-sized businesses throughout the region, providing
businesses with financial security and the ability to continue
operating and supporting their employees. We recognize challenges
are still ahead, however, based on our Company’s financial
performance and the general economic stability of our served
markets, we are cautiously optimistic. The majority of the
businesses we serve have been adaptable and shown much grit and
determination. We have worked with them to manage their businesses
and financial challenges.
“Margins, returns and interest income continue to be impacted by
expected business slowdowns and the issuance of low-interest PPP
loans. Importantly, the Bank has not experienced 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.
“The Company continued to build value, with increased
shareholder equity and increased book value that provided the
confidence to declare another quarterly cash dividend to
shareholders. The Company’s strong financial performance, prudent
provisioning for loan losses, and continued focus on
problem-solving and seeking out opportunities support our
confidence in the future.”
Third
Quarter,
Nine Months of
2020 Operational
Review
Total interest income was $7.3 million in the third quarter of
2020 compared with $7.6 million a year earlier and $7.1 million in
the second quarter of 2020, primarily reflecting moderate declines
in commercial lending and continuing pressure on interest rates.
Interest expense was $1.1 million in the third quarter of 2020
compared with $1.4 million a year earlier. The Company trimmed
deposit rates slightly in the third quarter of 2020 to reflect the
exceptionally low interest rate environment. A larger deposit base
and increased core deposits (noninterest bearing demand and
interest-bearing demand accounts) contributed to the rate paid on
liabilities in the third quarter of 2020 of 0.65% compared with
0.99% a year earlier.
Net interest income after provision for loan losses was $5.5
million for the three months ended September 30, 2020 compared with
$6.1 million the previous year. The loan loss provision for the
third quarter 2020 was $700,000 compared with $108,000 a year
earlier. For the nine months of 2020, net interest income after
provision for loan losses was $16.0 million compared with $18.0
million a year earlier.
The Company’s provision for loan losses for the nine months of
2020 was $2.3 million compared with $434,000 a year earlier. The
increase for the nine months of 2020 primarily reflects increased
qualitative allocations 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.
The average rate earned on loans was 4.37% in the third quarter
of 2020, compared with 4.33% in the second quarter of 2020 and 5.0%
a year earlier. The net interest margin was 3.10% in the third
quarter of 2020 compared with 3.13% in the second quarter of 2020
and 3.75% in the third quarter of 2019.
J. Todd Scruggs, Executive Vice President and CFO, commented:
“As anticipated, continuing pressure on interest rates, and the
addition of low-interest PPP loans had a negative impact on rates
earned, and carrying additional contingent liquidity in the form of
Fed funds, contributed to net interest margin compression. Since
the rate cuts in the spring, we have been encouraged by the
relative stability of rates and margins.
“We did not receive any PPP forgiveness payments in the third
quarter of 2020, so while some PPP fees were accreted into interest
income, the fees did not offset a decline in loan yields. Since the
end of the third quarter, a small number of PPP loans have been
repaid and we anticipate additional PPP forgiveness payments
occurring in the fourth quarter of 2020, which should have a
mitigating effect on the margin. Our focus continues to be on
monitoring credit quality and maintaining a fair rate
structure.”
For the nine months of 2020, total interest income was $21.9
million compared with $22.2 million in the nine months of 2019.
Total interest expense was $3.7 million in the nine months of 2020
compared with $3.8 million a year earlier. For the nine months of
2020, net interest income after the provision for loan losses was
$15.9 million compared with $18.0 million a year earlier, primarily
reflecting slower commercial loan activity and an increased loan
loss provision. The net interest margin was 3.27% for the nine
months of 2020 compared with 3.83% a year earlier.
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 $3.1 million in
the third quarter of 2020, up from $2.2 million in the third
quarter of 2019. The Company recorded $2.5 million in gains from
the sale of loans held for sale in the third quarter of 2020, up
from $1.3 million in the third quarter of 2019.
Noninterest expense for the three months ended September 30,
2020 increased compared with the previous year, primarily
reflecting increased personnel expenses that included
performance-based compensation for residential mortgage production
which was offset by lower personnel costs related to an early
retirement program. For the nine months of 2020, noninterest
expense included approximately $750,000 in one-time costs related
to the early retirement program. The Company also authorized
additional employee compensation of approximately $245,000 in the
second quarter of 2020 related to PPP loan originations.
The recognition of the origination fees and costs related to the
PPP loans will be accelerated and recognized upon forgiveness or
repayment of the PPP loans.
In the third quarter of 2020, Return on Average Assets (ROAA)
was 0.68% compared with 0.83% a year earlier, primarily reflecting
asset growth and a higher loan loss provision. Return on Average
Equity (ROAE) was 9.26% compared with 9.84% a year earlier. The
Company’s efficiency ratio improved to 72.77% in the third quarter
of 2020 from 76.54% in the prior year, reflecting the impact of the
early retirement program and a companywide focus on operating
expense management.
Balance Sheet Review:
Asset Quality,
Prudent Reserves, Liquidity
Total assets were $849.1 million at September 30, 2020 compared
with $725.4 million at December 31, 2019. Asset growth primarily
reflected increased loans, net of allowance for loan losses,
increased loans held for sale related to the Company’s mortgage
originations, higher cash reserves and an increase in the
securities available-for-sale portfolio. The Company has maintained
higher levels of cash and liquid assets consistent with economic
conditions and the potential impact of COVID-19 on customers.
Loans, net of allowance for loan losses of $7.0 million, were
$616.60 million at September 30, 2020 compared with loans, net of
allowance for loan losses of $4.8 million, of $573.27 million at
December 31, 2019. The addition of $68 million in PPP loans
contributed to loan growth. Commercial lending has been relatively
stable in 2020 and the Company has approved and closed new loans,
but not at a pace to offset payoffs and normal amortization. The
Company has increased the allowance for loan and lease losses
(ALLL) throughout 2020 to reflect the Company’s ongoing
consideration of the pandemic in the development of the allowance
estimate.
“Businesses in our served markets have generally demonstrated
resilience as they navigate the economic challenges presented by
COVID-19,” Chapman explained. “Although commercial loan growth has
understandably slowed as businesses take appropriately cautious
approaches, there has been stability and credit quality among
customers.
“We are diligently monitoring credit quality, measuring exposure
to business sectors with particular exposure to the impact of
COVID-19, and working closely with customers to help manage working
and growth capital requirements. We have continued to make loans
and find opportunities to build relationships through lending,
deposit and electronic treasury services that provide convenience
and efficiency while supporting safe remote operations.”
Residential mortgage origination continued strong activity,
generating noninterest income from origination fees and the sale of
mortgages to the secondary market. Retained residential mortgages
were $48.5 million at September 30, 2020 compared with $55.8
million a year earlier.
Total commercial loans were $174.8 million at September 30, 2020
compared with $102.2 million at September 30, 2019, with the
addition of approximately $68 million in PPP loans accounting for a
significant portion of the increase. Total owner occupied and
non-owner occupied commercial real estate loans declined slightly
year-over-year. Commercial construction loans were $21.6 million at
September 30, 2020, up 29% from a year earlier. The Company noted
that commercial construction has been active throughout the
year.
Asset quality has remained strong, with a ratio of nonperforming
loans to total loans of 0.41% at September 30, 2020. The allowance
for loan losses to total loans was increased to 1.12%
(approximately 1.25%, excluding guaranteed PPP loans) at September
30, 2020 from 0.98% at June 30, 2020. Total nonperforming loans in
the third quarter of 2020 declined compared with the second quarter
of 2020, and the Company’s allowance for loan losses to
nonperforming loans increased to 274% at September 30, 2020,
reflecting current economic uncertainties.
Total deposits at September 30, 2020 were $763.93, compared with
$649.46 at December 31, 2019, and up from $746.00 million at June
30, 2020. Increased demand deposits accounted for the growth, in
part due to the retention of PPP funds not yet deployed by
businesses. Core deposits (noninterest bearing demand, NOW, money
market and savings) have increased steadily and were 78% of total
deposits at September 30, 2020.
The Company continued to build measures of shareholder value,
with total stockholders’ equity of $65.8 million at September 30,
2020, up from $61.4 million at December 31, 2019 and retained
earnings of $23.3 million compared with $20.9 million in the same
periods respectively. Book value per share rose to $15.16 from
$14.10 at December 31, 2019.
Chapman concluded: “We are moving forward with continued
vigilance with regard to maintaining credit quality, liquidity and
capital strength. During these uncertain times, the Company
continued to build value for shareholders and pay a cash dividend.
We continue to focus on protecting the health and safety of
employees and customers while effectively conducting business.
Lastly, we continue to be grateful for the service to our region
and country by the healthcare professionals, first-responders, and
essential workers.”
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: |
ThreemonthsendingSep
30,2020 |
ThreemonthsendingSep
30,2019 |
Change |
YeartodateSep
30,2020 |
YeartodateSep
30,2019 |
Change |
Interest income |
$ |
7,338 |
$ |
7,596 |
|
-3.40 |
% |
$ |
21,907 |
$ |
22,220 |
|
-1.41 |
% |
Interest expense |
|
1,135 |
|
1,431 |
|
-20.68 |
% |
|
3,650 |
|
3,773 |
|
-3.26 |
% |
Net interest income |
|
6,203 |
|
6,165 |
|
0.62 |
% |
|
18,257 |
|
18,447 |
|
-1.03 |
% |
Provision for loan losses |
|
700 |
|
108 |
|
548.15 |
% |
|
2,348 |
|
434 |
|
441.01 |
% |
Noninterest income |
|
3,064 |
|
2,161 |
|
41.79 |
% |
|
8,039 |
|
5,039 |
|
59.54 |
% |
Noninterest expense |
|
6,744 |
|
6,373 |
|
5.82 |
% |
|
19,876 |
|
17,947 |
|
10.75 |
% |
Income taxes |
|
369 |
|
371 |
|
-0.54 |
% |
|
802 |
|
1,020 |
|
-21.37 |
% |
Net income |
|
1,454 |
|
1,474 |
|
-1.36 |
% |
|
3,270 |
|
4,085 |
|
-19.95 |
% |
Weighted average shares outstanding - basic |
|
4,339,436 |
|
4,378,436 |
|
(39,000 |
) |
|
4,342,294 |
|
4,378,436 |
|
(36,142 |
) |
Weighted average shares outstanding - diluted |
|
4,339,436 |
|
4,385,331 |
|
(45,895 |
) |
|
4,342,294 |
|
4,383,128 |
|
(40,834 |
) |
Basic net income per share |
$ |
0.34 |
$ |
0.34 |
$ |
- |
|
$ |
0.75 |
$ |
0.93 |
$ |
(0.18 |
) |
Fully diluted net income per share |
$ |
0.34 |
$ |
0.34 |
$ |
- |
|
$ |
0.75 |
$ |
0.93 |
$ |
(0.18 |
) |
Balance Sheet atperiod end: |
Sep 30,2020 |
Dec 31,2019 |
Change |
Sep 30,2019 |
Dec 31,2018 |
Change |
Loans, net |
$ |
616,581 |
$ |
573,274 |
|
7.55 |
% |
$ |
551,005 |
$ |
530,016 |
|
3.96 |
% |
Loans held for sale |
|
10,232 |
|
4,221 |
|
142.41 |
% |
|
5,630 |
|
1,670 |
|
237.13 |
% |
Total securities |
|
79,303 |
|
63,343 |
|
25.20 |
% |
|
58,090 |
|
56,427 |
|
2.95 |
% |
Total deposits |
|
763,933 |
|
649,459 |
|
17.63 |
% |
|
633,033 |
|
612,043 |
|
3.43 |
% |
Stockholders' equity |
|
65,782 |
|
61,445 |
|
7.06 |
% |
|
61,039 |
|
55,143 |
|
10.69 |
% |
Total assets |
|
849,129 |
|
725,394 |
|
17.06 |
% |
|
708,114 |
|
674,897 |
|
4.92 |
% |
Shares outstanding |
|
4,339,436 |
|
4,357,436 |
|
(18,000 |
) |
|
4,378,436 |
|
4,378,436 |
|
- |
|
Book value per share |
$ |
15.16 |
$ |
14.10 |
$ |
1.06 |
|
$ |
13.94 |
$ |
12.59 |
$ |
1.35 |
|
Daily averages: |
ThreemonthsendingSep
30,2020 |
ThreemonthsendingSep
30,2019 |
Change |
YeartodateSep
30,2020 |
YeartodateSep
30,2019 |
Change |
Loans, net |
$ |
625,847 |
|
$ |
558,483 |
|
12.06 |
% |
$ |
606,937 |
|
$ |
547,833 |
|
10.79 |
% |
Loans held for sale |
|
8,881 |
|
|
4,435 |
|
100.25 |
% |
|
6,072 |
|
|
3,471 |
|
74.94 |
% |
Total securities |
|
63,743 |
|
|
55,528 |
|
14.79 |
% |
|
59,358 |
|
|
57,779 |
|
2.73 |
% |
Total deposits |
|
768,618 |
|
|
628,110 |
|
22.37 |
% |
|
720,009 |
|
|
621,572 |
|
15.84 |
% |
Stockholders' equity |
|
62,309 |
|
|
59,415 |
|
4.87 |
% |
|
61,778 |
|
|
58,350 |
|
5.87 |
% |
Interest earning assets |
|
793,709 |
|
|
651,644 |
|
21.80 |
% |
|
744,246 |
|
|
644,363 |
|
15.50 |
% |
Interest bearing liabilities |
|
638,166 |
|
|
546,657 |
|
16.74 |
% |
|
608,968 |
|
|
536,261 |
|
13.56 |
% |
Total assets |
|
849,820 |
|
|
701,007 |
|
21.23 |
% |
|
798,106 |
|
|
690,015 |
|
15.67 |
% |
Financial Ratios: |
ThreemonthsendingSep
30,2020 |
ThreemonthsendingSep
30,2019 |
Change |
YeartodateSep
30,2020 |
YeartodateSep
30,2019 |
Change |
Return on average assets |
|
0.68 |
% |
|
0.83 |
% |
(0.15 |
) |
|
0.55 |
% |
|
0.79 |
% |
(0.24 |
) |
Return on average equity |
|
9.26 |
% |
|
9.84 |
% |
(0.58 |
) |
|
7.05 |
% |
|
9.36 |
% |
(2.31 |
) |
Net interest margin |
|
3.10 |
% |
|
3.75 |
% |
(0.65 |
) |
|
3.27 |
% |
|
3.83 |
% |
(0.56 |
) |
Efficiency ratio |
|
72.77 |
% |
|
76.54 |
% |
(3.77 |
) |
|
75.59 |
% |
|
76.42 |
% |
(0.83 |
) |
Average equity to average assets |
|
7.33 |
% |
|
8.48 |
% |
(1.15 |
) |
|
7.74 |
% |
|
8.46 |
% |
(0.72 |
) |
Allowance for loan losses: |
ThreemonthsendingSep
30,2020 |
ThreemonthsendingSep
30,2019 |
Change |
YeartodateSep
30,2020 |
YeartodateSep
30,2019 |
Change |
Beginning balance |
$ |
6,193 |
|
$ |
4,724 |
|
31.10 |
% |
$ |
4,829 |
|
$ |
4,581 |
|
5.41 |
% |
Provision for losses |
|
700 |
|
|
108 |
|
548.15 |
% |
|
2,348 |
|
|
434 |
|
441.01 |
% |
Charge-offs |
|
(57 |
) |
|
(100 |
) |
-43.00 |
% |
|
(396 |
) |
|
(319 |
) |
24.14 |
% |
Recoveries |
|
130 |
|
|
41 |
|
217.07 |
% |
|
185 |
|
|
77 |
|
140.26 |
% |
Ending balance |
|
6,966 |
|
|
4,773 |
|
45.95 |
% |
|
6,966 |
|
|
4,773 |
|
45.95 |
% |
Nonperforming assets: |
Sep 30,2020 |
Dec 31,2019 |
Change |
Sep 30,2019 |
Dec 31,2018 |
Change |
Total nonperforming loans |
$ |
2,538 |
$ |
1,301 |
95.08 |
% |
$ |
1,771 |
$ |
2,939 |
-39.74 |
% |
Other real estate owned |
|
1,405 |
|
2,339 |
-39.93 |
% |
|
2,242 |
|
2,431 |
-7.77 |
% |
Total nonperforming assets |
|
3,943 |
|
3,640 |
8.32 |
% |
|
4,013 |
|
5,370 |
-25.27 |
% |
Troubled debt restructurings - (performing portion) |
|
397 |
|
410 |
-3.17 |
% |
|
413 |
|
424 |
-2.59 |
% |
Asset quality ratios: |
Sep 30,2020 |
Dec 31,2019 |
Change |
Sep 30,2019 |
Dec 31,2018 |
Change |
Nonperforming loans to total loans |
0.41 |
% |
0.23 |
% |
0.18 |
|
0.32 |
% |
0.55 |
% |
(0.23 |
) |
Allowance for loan losses to total loans |
1.12 |
% |
0.84 |
% |
0.28 |
|
0.86 |
% |
0.86 |
% |
0.00 |
|
Allowance for loan losses to nonperforming loans |
274.47 |
% |
371.18 |
% |
(96.71 |
) |
269.51 |
% |
155.87 |
% |
113.64 |
|
Bank of the James Financial Group,
Inc. and
SubsidiariesConsolidated Balance
Sheets(dollar amounts in thousands, except per
share amounts)
|
(unaudited) |
|
|
Assets |
9/30/2020 |
|
12/31/2019 |
Cash and due from banks |
$ |
30,324 |
|
$ |
30,794 |
|
Federal funds sold |
|
64,720 |
|
|
8,317 |
|
Total cash and cash equivalents |
|
95,044 |
|
|
39,111 |
|
|
|
|
|
Securities held-to-maturity (fair
value of $4,283 in 2020 and $3,861 in 2019) |
|
3,675 |
|
|
3,688 |
|
Securities available-for-sale, at
fair value |
|
75,628 |
|
|
59,655 |
|
Restricted stock, at cost |
|
1,551 |
|
|
1,506 |
|
Loans, net of allowance for loan
losses of $6,966 in 2020 and $4,829 in 2019 |
|
616,581 |
|
|
573,274 |
|
Loans held for sale |
|
10,232 |
|
|
4,221 |
|
Premises and equipment, net |
|
16,698 |
|
|
16,297 |
|
Software, net |
|
376 |
|
|
401 |
|
Interest receivable |
|
2,558 |
|
|
1,866 |
|
Cash value - bank owned life
insurance |
|
16,489 |
|
|
13,686 |
|
Other real estate owned |
|
1,405 |
|
|
2,339 |
|
Income taxes receivable |
|
396 |
|
|
- |
|
Deferred tax asset |
|
576 |
|
|
1,177 |
|
Other assets |
|
7,920 |
|
|
8,173 |
|
Total assets |
$ |
849,129 |
|
$ |
725,394 |
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity |
|
|
|
|
|
|
|
Deposits |
|
|
|
Noninterest bearing demand |
|
147,039 |
|
|
93,936 |
|
NOW, money market and savings |
|
450,009 |
|
|
362,821 |
|
Time |
|
166,885 |
|
|
192,702 |
|
Total deposits |
|
763,933 |
|
|
649,459 |
|
|
|
|
|
Capital notes |
|
10,026 |
|
|
5,000 |
|
Income taxes payable |
|
- |
|
|
124 |
|
Interest payable |
|
140 |
|
|
173 |
|
Other liabilities |
|
9,248 |
|
|
9,193 |
|
Total liabilities |
$ |
783,347 |
|
$ |
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 September 30, 2020
and December 31, 2019 |
|
9,286 |
|
|
9,325 |
|
Additional paid-in-capital |
|
30,989 |
|
|
31,225 |
|
Accumulated other comprehensive income (loss) |
|
2,249 |
|
|
(5 |
) |
Retained earnings |
|
23,258 |
|
|
20,900 |
|
Total stockholders'
equity |
$ |
65,782 |
|
$ |
61,445 |
|
|
|
|
|
Total liabilities and
stockholders' equity |
$ |
849,129 |
|
$ |
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 Nine Months |
|
Ended September 30, |
|
Ended September 30, |
Interest
Income |
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
Loans |
$ |
6,958 |
|
$ |
7,080 |
|
$ |
20,695 |
|
$ |
20,550 |
Securities |
|
|
|
|
|
|
|
US Government and agency obligations |
|
168 |
|
|
176 |
|
|
506 |
|
|
545 |
Mortgage backed securities |
|
50 |
|
|
54 |
|
|
164 |
|
|
171 |
Municipals |
|
94 |
|
|
77 |
|
|
249 |
|
|
239 |
Dividends |
|
15 |
|
|
9 |
|
|
48 |
|
|
60 |
Other (Corporates) |
|
25 |
|
|
23 |
|
|
71 |
|
|
70 |
Interest bearing deposits |
|
15 |
|
|
88 |
|
|
85 |
|
|
253 |
Federal Funds sold |
|
13 |
|
|
89 |
|
|
89 |
|
|
332 |
Total interest income |
|
7,338 |
|
|
7,596 |
|
|
21,907 |
|
|
22,220 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
Expense |
|
|
|
|
|
|
|
Deposits |
|
|
|
|
|
|
|
NOW, money market savings |
|
177 |
|
|
414 |
|
|
669 |
|
|
1,082 |
Time Deposits |
|
798 |
|
|
876 |
|
|
2,559 |
|
|
2,294 |
Finance leases |
|
29 |
|
|
41 |
|
|
87 |
|
|
41 |
Brokered time deposits |
|
46 |
|
|
50 |
|
|
143 |
|
|
206 |
Capital notes |
|
85 |
|
|
50 |
|
|
192 |
|
|
150 |
Total interest expense |
|
1,135 |
|
|
1,431 |
|
|
3,650 |
|
|
3,773 |
|
|
|
|
|
|
|
|
Net interest income |
|
6,203 |
|
|
6,165 |
|
|
18,257 |
|
|
18,447 |
|
|
|
|
|
|
|
|
Provision for loan losses |
|
700 |
|
|
108 |
|
|
2,348 |
|
|
434 |
|
|
|
|
|
|
|
|
Net interest income after provision for loan
losses |
|
5,503 |
|
|
6,057 |
|
|
15,909 |
|
|
18,013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
income |
|
|
|
|
|
|
|
Gains on sale of loans held for sale |
|
2,459 |
|
|
1,337 |
|
|
5,586 |
|
|
3,103 |
Service charges, fees and commissions |
|
498 |
|
|
448 |
|
|
1,500 |
|
|
1,348 |
Life insurance income |
|
101 |
|
|
81 |
|
|
289 |
|
|
248 |
Other |
|
6 |
|
|
4 |
|
|
20 |
|
|
49 |
Gain (loss) on sales of available-for-sale securities |
|
- |
|
|
291 |
|
|
644 |
|
|
291 |
|
|
|
|
|
|
|
|
Total noninterest income |
|
3,064 |
|
|
2,161 |
|
|
8,039 |
|
|
5,039 |
|
|
|
|
|
|
|
|
Noninterest
expenses |
|
|
|
|
|
|
|
Salaries and employee benefits |
|
3,713 |
|
|
3,356 |
|
|
11,040 |
|
|
9,437 |
Occupancy |
|
419 |
|
|
414 |
|
|
1,237 |
|
|
1,252 |
Equipment |
|
560 |
|
|
527 |
|
|
1,738 |
|
|
1,521 |
Supplies |
|
120 |
|
|
163 |
|
|
353 |
|
|
467 |
Professional, data processing, and other outside expense |
|
990 |
|
|
887 |
|
|
2,884 |
|
|
2,561 |
Marketing |
|
185 |
|
|
228 |
|
|
500 |
|
|
649 |
Credit expense |
|
359 |
|
|
195 |
|
|
831 |
|
|
478 |
Other real estate expenses |
|
15 |
|
|
200 |
|
|
135 |
|
|
340 |
FDIC insurance expense |
|
76 |
|
|
87 |
|
|
220 |
|
|
275 |
Other |
|
307 |
|
|
316 |
|
|
938 |
|
|
967 |
Total noninterest expenses |
|
6,744 |
|
|
6,373 |
|
|
19,876 |
|
|
17,947 |
|
|
|
|
|
|
|
|
Income before income taxes |
|
1,823 |
|
|
1,845 |
|
|
4,072 |
|
|
5,105 |
|
|
|
|
|
|
|
|
Income tax expense |
|
369 |
|
|
371 |
|
|
802 |
|
|
1,020 |
|
|
|
|
|
|
|
|
Net Income |
$ |
1,454 |
|
$ |
1,474 |
|
$ |
3,270 |
|
$ |
4,085 |
|
|
|
|
|
|
|
|
Weighted average shares
outstanding - basic |
|
4,339,436 |
|
|
4,378,436 |
|
|
4,342,294 |
|
|
4,378,436 |
|
|
|
|
|
|
|
|
Weighted average shares
outstanding - diluted |
|
4,339,436 |
|
|
4,385,331 |
|
|
4,342,294 |
|
|
4,383,128 |
|
|
|
|
|
|
|
|
Net income per common share -
basic |
$ |
0.34 |
|
$ |
0.34 |
|
$ |
0.75 |
|
$ |
0.93 |
|
|
|
|
|
|
|
|
Net income per common share -
diluted |
$ |
0.34 |
|
$ |
0.34 |
|
$ |
0.75 |
|
$ |
0.93 |
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