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 and six month periods
ended June 30, 2021.
Net income for the three months ended June 30, 2021 was $2.01
million or $0.42 per diluted share compared with $821 thousand or
$0.17 per diluted share for the three months ended June 30, 2020.
For the six months ended June 30, 2021, net income was $3.85
million or $0.81 per diluted share compared with $1.82 million or
$0.38 million per diluted share for the six months ended June 30,
2020. The outstanding shares used to calculate earnings per share
for both the 2020 and 2021 have been adjusted to include a 10%
stock dividend declared in June 2021.
Robert R. Chapman III, President and CEO, commented: “Strong
second quarter and first half earnings reflected our team’s
commitment to serving and supporting clients’ financial needs
despite challenges presented by the pandemic and economic
uncertainties. Maximizing opportunities to serve in commercial
banking, including active participation in the Payroll Protection
Program (PPP), and residential mortgage originations have generated
revenue gains. Diligent attention to expense management, efficient
operation, and maintaining a strong balance sheet and high loan
quality have supported the Company’s positive financial
performance.
“Our financial performance enabled the Company to thank
shareholders for their support and confidence with a 10% stock
dividend in the second quarter in addition to our quarterly cash
dividend, reflecting our expectations that the Company’s prospects
are very encouraging.
“We are heartened by the signs of economic and health recovery
in our communities. Our ongoing assessments indicate our customers
and communities have essentially weathered the worst of the
pandemic conditions and are well-positioned to move ahead. However,
we believe there is still a great deal of risk and uncertainty on
the health and economic fronts. We continue our diligent credit
monitoring and are staying in close contact with customers.
“We are maintaining strong cash reserves to help hedge potential
risks related to the ongoing economic uncertainty and COVID-19
Delta variant risks. We also believe that our level of allowance
for loan losses is adequate and reflects the current economic
uncertainty. We are proceeding with optimism. However, we are
proceeding with care and maintaining a prudent financial
stance.”
Highlights
- Net income in the second quarter of 2021 included strong
noninterest income, which was $3.05 million, up 9% from $2.80
million in the second quarter of 2020, primarily driven by mortgage
loan processing fees and gains on the sale of originated
residential mortgages to the secondary market, fees from electronic
corporate treasury services, and mortgage loan processing. In the
first half of 2021, residential mortgage loan origination and
gain-on-sale of loans contributed to a 10% year-over-year growth in
noninterest income.
- Total interest income was $7.23 million in the second quarter
of 2021 compared with $7.08 million a year earlier, and $14.60
million in the first half of 2021 and 2020. Commercial lending
activity in both periods of 2021 was subdued, reflecting the impact
of the pandemic and economic conditions on commercial loan demand,
generally strong cash positions of businesses, and pressure on
interest rates.
- Net interest income after provision for loan losses was $6.71
million in the second quarter of 2021 and $13.46 million in the
first half of 2021, up 31% and 29%, respectively, compared with the
2020 periods. Net interest income in both periods of 2021 primarily
reflected a 55% year-over-year reduction of interest expense and no
provision for loan losses in both periods of 2021.
- Loans, net of the allowance for loan losses, were $595.2
million at June 30, 2021, compared with $601.9 million at December
31, 2020, primarily reflecting ongoing paydowns of PPP loans.
- Commercial real estate loans (owner occupied and non-owner
occupied) increased in the second quarter of 2021 from the first
quarter of 2021 and have grown by $38.2 million since June 30,
2020.
- Asset quality remained sound with a 0.33% ratio of
nonperforming loans to total loans, reflecting strong credit
quality and fewer nonperforming loans. The allowance for loan
losses to total loans was 1.20% at June 30, 2021 (approximately
1.29% excluding government-guaranteed PPP loans).
- Total deposits were $819.4 million at June 30, 2021 compared
with $765.0 million at December 31, 2020, reflecting continued core
deposit growth (noninterest-bearing demand, NOW, savings and money
market accounts) and declines in time deposits.
- Total stockholders’ equity was $68.1 million at June 30, 2021
compared with $66.7 million at December 31, 2020. Book value per
share was $14.36 at June 30, 2021 compared with $15.38 per share at
December 31, 2020, primarily reflecting the 10% stock dividend
declared in the second quarter of 2021.
- On July 20, 2021 the Company’s board of directors approved a
quarterly $0.07 per share dividend payable to stockholders of
record on September 3, 2021, to be paid on September 17, 2021.
Second Quarter, First Half 2021 Operational
Review
Net interest income after provision for loan losses in the
second quarter of 2021 was $6.7 million compared with $5.2 million
in the second quarter of 2020, reflecting no loan loss provision in
the 2021 period and a $760,000 provision in the second quarter of
2020. Total interest income was $7.2 million in the second quarter
of 2021, compared with $7.1 million a year earlier. Total interest
income in the second quarter and first half of 2021 reflected
relatively flat commercial lending activity (exclusive of PPP
lending) and continued downward pressure on interest rates. The
return on interest earning assets was 3.39% compared with 3.74% a
year earlier.
The Company trimmed interest expense to $524,000 in the second
quarter of 2021, down 55% compared with a year earlier, reflecting
reduced costs of time deposits and borrowings, a retirement of
higher-cost debt in 2020, and growth of lower-cost core deposits
(noninterest-bearing demand, NOW, savings and money market
accounts). The Company lowered the rate paid on total
interest-bearing liabilities to 0.31% in the second quarter of 2021
from 0.76% a year earlier. The net interest margin was 3.15% and
interest spread was 3.08% in the second quarter of 2021 –
relatively consistent with the 2020 period.
In the first half of 2021, net interest income after provision
for loan losses was $13.5 million compared with $10.4 million for
the six months of 2020. The first half of 2021 reflected similar
year-over-year comparisons, including flat total interest income,
lower return on interest earning assets, sharply reduced interest
expense, and lower rates paid on interest-bearing liabilities. The
Company had no provision for loan losses in the first half of 2021
compared with a $1.6 million provision for loan losses in the first
half of 2020.
J. Todd Scruggs, Executive Vice President and CFO, commented:
“We believe we have maximized revenue opportunities and managed
expenses, and thus far we have been able to navigate the challenges
posed by the pandemic. We have accreted some of the PPP fees into
interest income, which has provided support for interest income and
net interest margin during a period of minimal commercial lending
growth. We continue to recognize fees from processing the later
rounds of PPP loans, although we anticipate this will be slowing in
the coming months as PPP loans are paid off and forgiven.
“We anticipate that as businesses continue their recovery and
are able to more accurately assess business activity and growth
opportunities, we can look forward to a return to more normal
interest income activity. We expect a competitive commercial
lending market and interest rate pressure will continue as the
recovery continues.”
In the second quarter of 2021, noninterest income, including
gains from the sale of residential mortgages to the secondary
market and income from the Bank’s line of treasury management
services for commercial customers, was $3.0 million compared with
$2.8 million in the second quarter of 2020. Strong residential
mortgage originations generated $2.3 million in gains from the sale
of loans held-for-sale in the second quarter of 2021 compared with
$2.0 million in the second quarter of 2020.
Noninterest expense for the three months ended June 30, 2021
increased modestly compared with a year earlier, primarily
reflecting increased personnel expenses that included
performance-based compensation for residential mortgage production
and employee work on PPP loans.
For the three months ended June 30, 2021, Return on Average
Assets (ROAA) was 0.88% compared with 0.41% a year earlier,
primarily reflecting asset growth and increased earnings. Return on
Average Equity (ROAE) increased to 12.23% compared with 5.33% a
year earlier. For the three months ended June 30, 2021, the
Company’s efficiency ratio was 74.16%, improving from 79.65% for
the three months ended June 30, 2020.
Noninterest income in the first half of 2021 was $5.5 million,
up 10% from $5.0 million in the first half of 2020, primarily
reflecting year-over-year growth in gains from the sale of
residential mortgage loans to the secondary market. Noninterest
expense increased slightly to $14.1 million in the first half of
2021 from $13.1 million a year earlier. The Company’s ROAA, ROAE
and efficiency ratio reflected improvements similar to those in the
quarterly comparisons.
Balance Sheet Review: Loan Quality, Strong Reserves, CRE
Gains
Total assets were $908.4 million at June 30, 2021 compared with
$851.4 million at December 31, 2020, with the increase primarily
reflecting an increase in deposits.
Loans, net of allowance for loan losses of $7.2 million, were
$595.2 million at June 30, 2021 compared with loans, net of
allowance for loan losses of $7.2 million of $601.9 million at
December 31, 2020. Net loans declined slightly from $606.5 million
at March 31, 2021, which reflected the ongoing paydowns and
forgiveness of PPP loans as the program winds down. At June 30,
2021, the Company had approximately $39.3 million of
government-guaranteed PPP loans and expects this total to continue
declining in the coming months.
Commercial loans, including outstanding PPP loans, were $133.6
million at June 30, 2021, down from $145.1 million at December 31,
2020 and $155.2 million at March 31, 2021. As noted, this decline
primarily reflects paydowns of PPP loans. Slower business activity
and conservative borrowing during the pandemic continues to depress
commercial lending. Although the Company has approved and closed
new commercial loans, activity has not been at a sufficient pace to
offset payoffs and normal amortization. Management noted some
businesses have used higher cash reserves to pay down lines of
credit balances.
Commercial real estate and commercial construction lending have
increased modestly during the past year despite the pandemic and
economic uncertainties. At June 30, 2021, commercial
mortgages-owner occupied were $117.8 million compared with $93.0
million a year earlier and increased approximately $8.2 million
during the second quarter from $109.7 million at March 31, 2021.
Non-owner occupied commercial mortgages were $178.0 million at June
30, 2021 compared with $164.5 million at June 30, 2020 and
increased from $170.5 million at March 31, 2021. Commercial
construction loans increased to $30.8 million from $20.2 million a
year earlier.
Consumer loans were relatively stable year-over-year. Retained
residential mortgage totals declined to $37.6 million at June 30,
2021 from $50.4 million at June 30, 2020, reflecting the Company’s
ongoing practice of selling originated residential mortgages to the
secondary market and judicious management of retained mortgage
loans. Residential construction loans increased modestly
year-over-year.
Asset quality has remained strong, with a ratio of nonperforming
loans to total loans of 0.33% at June 30, 2021 compared with 0.34%
at December 31, 2020. The allowance for loan losses to total loans
was 1.20% (approximately 1.29%, excluding guaranteed PPP loans) at
June 30, 2021 compared with 1.17% at December 31, 2020
(approximately 1.25% excluding PPP loans). Total nonperforming
loans were $2.0 million at June 30, 2021 compared with $2.1 million
at December 31, 2020. Other real estate owned was $761,000 at June
30, 2021 compared with $1.1 million at December 31, 2020.
The Company maintained a significant 363% allowance for loan
losses to nonperforming loans ratio, which management believes
reflects estimates of continued loan portfolio risk primarily
attributable to the ongoing economic uncertainties arising from the
COVID-19 pandemic, which have lingered due to lagging vaccination
rates and an increase in cases within our markets related to the
Delta variant.
Total deposits at June 30, 2021 were $819.4 million, compared
with $765.0 million at December 31, 2020. As in the past several
quarters, increased demand deposits accounted for the growth, in
part due to increased balances held by businesses and organic
growth in the Bank’s markets. Time deposits declined during the
quarter as the Bank continued to allow higher interest time
deposits to roll off. Core deposits (noninterest bearing demand,
NOW, money market and savings) were approximately 82% of total
deposits at June 30, 2021.
The Company’s measures of shareholder value included total
stockholders’ equity of $68.1 million at June 30, 2021, compared
with $66.7 million at December 31, 2020 and book value per share of
$14.36. As noted, strong quarterly earnings enabled the Company to
issue a 10% stock dividend and continue to pay a quarterly $0.07
dividend per share. The Company intends to continue to take
advantage of opportunities to repurchase shares at or below book
value.
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
30,2021 |
ThreemonthsendingJun
30,2020 |
Change |
YeartodateJun
30,2021 |
YeartodateJun
30,2020 |
Change |
Interest income |
$ |
7,234 |
$ |
7,081 |
|
2.16 |
% |
$ |
14,599 |
$ |
14,569 |
|
0.21 |
% |
Interest expense |
|
524 |
|
1,163 |
|
-54.94 |
% |
|
1,141 |
|
2,515 |
|
-54.63 |
% |
Net interest income |
|
6,710 |
|
5,918 |
|
13.38 |
% |
|
13,458 |
|
12,054 |
|
11.65 |
% |
Provision for loan losses |
|
- |
|
760 |
|
-100.00 |
% |
|
- |
|
1,648 |
|
-100.00 |
% |
Noninterest income |
|
3,049 |
|
2,789 |
|
9.32 |
% |
|
5,483 |
|
4,975 |
|
10.21 |
% |
Noninterest expense |
|
7,237 |
|
6,935 |
|
4.35 |
% |
|
14,126 |
|
13,132 |
|
7.57 |
% |
Income taxes |
|
508 |
|
191 |
|
165.97 |
% |
|
966 |
|
433 |
|
123.09 |
% |
Net income |
|
2,014 |
|
821 |
|
145.31 |
% |
|
3,849 |
|
1,816 |
|
111.95 |
% |
Weighted average shares outstanding - basic (1) |
|
4,748,356 |
|
4,773,380 |
|
(25,024 |
) |
|
4,757,480 |
|
4,778,112 |
|
(20,632 |
) |
Weighted average shares outstanding - diluted (1) |
|
4,748,356 |
|
4,773,380 |
|
(25,024 |
) |
|
4,757,480 |
|
4,778,112 |
|
(20,632 |
) |
Basic net income per share (1) |
$ |
0.42 |
$ |
0.17 |
$ |
0.25 |
|
$ |
0.81 |
$ |
0.38 |
$ |
0.43 |
|
Fully diluted net income per share (1) |
$ |
0.42 |
$ |
0.17 |
$ |
0.25 |
|
$ |
0.81 |
$ |
0.38 |
$ |
0.43 |
|
(1) Shares and per share amounts for all periods have been
adjusted to reflect a 10% stock dividend declared in June 2021.
Balance Sheet atperiod end: |
Jun 30,2021 |
Dec 31,2020 |
Change |
Jun 30,2020 |
Dec 31,2019 |
Change |
Loans, net |
$ |
595,172 |
$ |
601,934 |
|
-1.12 |
% |
$ |
623,564 |
$ |
573,274 |
|
8.77 |
% |
Loans held for sale |
|
6,253 |
|
7,102 |
|
-11.95 |
% |
|
6,098 |
|
4,221 |
|
44.47 |
% |
Total securities |
|
134,627 |
|
93,856 |
|
43.44 |
% |
|
58,751 |
|
63,343 |
|
-7.25 |
% |
Total deposits |
|
819,442 |
|
764,967 |
|
7.12 |
% |
|
745,986 |
|
649,459 |
|
14.86 |
% |
Stockholders' equity |
|
68,091 |
|
66,732 |
|
2.04 |
% |
|
64,465 |
|
61,445 |
|
4.91 |
% |
Total assets |
|
908,364 |
|
851,386 |
|
6.69 |
% |
|
827,098 |
|
725,394 |
|
14.02 |
% |
Shares outstanding |
|
4,741,560 |
|
4,339,436 |
|
402,124 |
|
|
4,339,436 |
|
4,357,436 |
|
(18,000 |
) |
Book value per share |
$ |
14.36 |
$ |
15.38 |
$ |
(1.02 |
) |
$ |
14.86 |
$ |
14.10 |
$ |
0.76 |
|
Daily averages: |
ThreemonthsendingJun
30,2021 |
ThreemonthsendingJun
30,2020 |
Change |
YeartodateJun
30,2021 |
YeartodateJun
30,2020 |
Change |
Loans, net |
$ |
610,338 |
$ |
620,572 |
-1.65 |
% |
$ |
610,876 |
$ |
597,378 |
2.26 |
% |
Loans held for sale |
|
5,542 |
|
5,653 |
-1.96 |
% |
|
5,848 |
|
4,563 |
28.16 |
% |
Total securities |
|
116,214 |
|
56,647 |
105.15 |
% |
|
106,283 |
|
58,296 |
82.32 |
% |
Total deposits |
|
829,187 |
|
731,009 |
13.43 |
% |
|
808,861 |
|
695,436 |
16.31 |
% |
Stockholders' equity |
|
66,066 |
|
61,776 |
6.94 |
% |
|
65,434 |
|
61,509 |
6.38 |
% |
Interest earning assets |
|
855,748 |
|
759,306 |
12.70 |
% |
|
836,285 |
|
720,305 |
16.10 |
% |
Interest bearing liabilities |
|
671,812 |
|
614,343 |
9.35 |
% |
|
657,756 |
|
594,207 |
10.69 |
% |
Total assets |
|
918,350 |
|
808,602 |
13.57 |
% |
|
897,917 |
|
772,170 |
16.28 |
% |
Financial Ratios: |
ThreemonthsendingJun
30,2021 |
ThreemonthsendingJun
30,2020 |
Change |
YeartodateJun
30,2021 |
YeartodateJun
30,2020 |
Change |
Return on average assets |
0.88 |
% |
0.41 |
% |
0.47 |
|
0.86 |
% |
0.47 |
% |
0.39 |
|
Return on average equity |
12.23 |
% |
5.33 |
% |
6.90 |
|
11.86 |
% |
5.95 |
% |
5.91 |
|
Net interest margin |
3.15 |
% |
3.13 |
% |
0.02 |
|
3.25 |
% |
3.37 |
% |
(0.12 |
) |
Efficiency ratio |
74.16 |
% |
79.65 |
% |
(5.49 |
) |
74.58 |
% |
77.12 |
% |
(2.54 |
) |
Average equity to average assets |
7.19 |
% |
7.64 |
% |
(0.45 |
) |
7.29 |
% |
7.97 |
% |
(0.68 |
) |
Allowance for loan losses: |
ThreemonthsendingJun
30,2021 |
ThreemonthsendingJun
30,2020 |
Change |
YeartodateJun
30,2021 |
YeartodateJun
30,2020 |
Change |
Beginning balance |
$ |
7,106 |
$ |
5,474 |
|
29.81 |
% |
$ |
7,156 |
|
$ |
4,829 |
|
48.19 |
% |
Provision for losses |
|
- |
|
760 |
|
-100.00 |
% |
|
- |
|
|
1,648 |
|
-100.00 |
% |
Charge-offs |
|
- |
|
(79 |
) |
-100.00 |
% |
|
(64 |
) |
|
(339 |
) |
-81.12 |
% |
Recoveries |
|
106 |
|
38 |
|
178.95 |
% |
|
120 |
|
|
55 |
|
118.18 |
% |
Ending balance |
|
7,212 |
|
6,193 |
|
16.45 |
% |
|
7,212 |
|
|
6,193 |
|
16.45 |
% |
Nonperforming assets: |
Jun 30,2021 |
Dec 31,2020 |
Change |
Jun 30,2020 |
Dec 31,2019 |
Change |
Total nonperforming loans |
$ |
1,985 |
$ |
2,064 |
-3.83 |
% |
$ |
5,186 |
$ |
1,301 |
298.62 |
% |
Other real estate owned |
|
761 |
|
1,105 |
-31.13 |
% |
|
1,616 |
|
2,339 |
-30.91 |
% |
Total nonperforming assets |
|
2,746 |
|
3,169 |
-13.35 |
% |
|
6,802 |
|
3,640 |
86.87 |
% |
Troubled debt restructurings - (performing portion) |
|
380 |
|
392 |
-3.06 |
% |
|
402 |
|
410 |
-1.95 |
% |
Asset quality ratios: |
Jun 30,2021 |
Dec 31,2020 |
Change |
Jun 30,2020 |
Dec 31,2019 |
Change |
Nonperforming loans to total loans |
0.33 |
% |
0.34 |
% |
(0.01 |
) |
0.82 |
% |
0.23 |
% |
0.59 |
|
Allowance for loan losses to total loans |
1.20 |
% |
1.17 |
% |
0.03 |
|
0.98 |
% |
0.84 |
% |
0.14 |
|
Allowance for loan losses to nonperforming loans |
363.32 |
% |
346.71 |
% |
16.61 |
|
119.42 |
% |
371.18 |
% |
(251.76 |
) |
Bank of the James Financial Group, Inc. and
SubsidiariesConsolidated Balance
Sheets(dollar amounts in thousands, except per
share amounts)
Assets |
(unaudited)6/30/2021 |
|
12/31/2020 |
|
Cash and due from banks |
$ |
39,395 |
|
$ |
31,683 |
Federal funds sold |
|
83,894 |
|
|
69,203 |
Total cash and cash equivalents |
|
123,289 |
|
|
100,886 |
|
|
|
|
Securities held-to-maturity
(fair value of $4,056 in 2021 and $4,192 in 2020) |
|
3,663 |
|
|
3,671 |
Securities available-for-sale,
at fair value |
|
130,964 |
|
|
90,185 |
Restricted stock, at cost |
|
1,324 |
|
|
1,551 |
Loans, net of allowance for
loan losses of $7,212 in 2021 and $7,156 in 2020 |
|
595,172 |
|
|
601,934 |
Loans held for sale |
|
6,253 |
|
|
7,102 |
Premises and equipment,
net |
|
16,919 |
|
|
16,621 |
Software, net |
|
249 |
|
|
361 |
Interest receivable |
|
2,105 |
|
|
2,350 |
Cash value - bank owned life
insurance |
|
18,553 |
|
|
16,355 |
Other real estate owned |
|
761 |
|
|
1,105 |
Other assets |
|
9,112 |
|
|
9,265 |
Total assets |
$ |
908,364 |
|
$ |
851,386 |
|
|
|
|
Liabilities and
Stockholders' Equity |
|
|
|
Deposits |
|
|
|
Noninterest bearing demand |
|
156,594 |
|
|
143,345 |
NOW, money market and savings |
|
519,434 |
|
|
463,506 |
Time |
|
143,414 |
|
|
158,116 |
Total deposits |
|
819,442 |
|
|
764,967 |
|
|
|
|
Capital notes |
|
10,029 |
|
|
10,027 |
Interest payable |
|
56 |
|
|
85 |
Other liabilities |
|
10,746 |
|
|
9,575 |
Total liabilities |
$ |
840,273 |
|
$ |
784,654 |
|
|
|
|
Stockholders' equity |
|
|
|
Common stock $2.14 par value; authorized 10,000,000 shares; issued
and outstanding 4,741,560 and 4,339,436 as of June 30, 2021 and
December 31, 2020 |
|
10,147 |
|
|
9,286 |
Additional paid-in-capital |
|
37,244 |
|
|
30,989 |
Accumulated other comprehensive income |
|
336 |
|
|
1,792 |
Retained earnings |
|
20,364 |
|
|
24,665 |
Total stockholders'
equity |
$ |
68,091 |
|
$ |
66,732 |
|
|
|
|
Total liabilities and
stockholders' equity |
$ |
908,364 |
|
$ |
851,386 |
|
Bank of the James Financial Group, Inc. and
SubsidiariesConsolidated Statements of
Income(dollar amounts in thousands, except per
share amounts)
(unaudited) |
For the Three MonthsEnded June
30, |
|
For the Six MonthsEnded June
30, |
|
Interest Income |
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
Loans |
$ |
6,624 |
|
$ |
6,732 |
|
$ |
13,484 |
|
$ |
13,737 |
Securities |
|
|
|
|
|
|
|
US Government and agency obligations |
|
219 |
|
|
151 |
|
|
410 |
|
|
338 |
Mortgage backed securities |
|
84 |
|
|
55 |
|
|
161 |
|
|
114 |
Municipals |
|
203 |
|
|
80 |
|
|
356 |
|
|
155 |
Dividends |
|
29 |
|
|
24 |
|
|
35 |
|
|
33 |
Other (Corporates) |
|
50 |
|
|
23 |
|
|
100 |
|
|
46 |
Interest bearing deposits |
|
5 |
|
|
6 |
|
|
19 |
|
|
70 |
Federal Funds sold |
|
20 |
|
|
10 |
|
|
34 |
|
|
76 |
Total interest income |
|
7,234 |
|
|
7,081 |
|
|
14,599 |
|
|
14,569 |
|
|
|
|
|
|
|
|
Interest
Expense |
|
|
|
|
|
|
|
Deposits |
|
|
|
|
|
|
|
NOW, money market savings |
|
138 |
|
|
166 |
|
|
273 |
|
|
492 |
Time Deposits |
|
278 |
|
|
864 |
|
|
651 |
|
|
1,761 |
Finance leases |
|
27 |
|
|
28 |
|
|
54 |
|
|
58 |
Brokered time deposits |
|
- |
|
|
48 |
|
|
- |
|
|
97 |
Capital notes |
|
81 |
|
|
57 |
|
|
163 |
|
|
107 |
Total interest expense |
|
524 |
|
|
1,163 |
|
|
1,141 |
|
|
2,515 |
|
|
|
|
|
|
|
|
Net interest income |
|
6,710 |
|
|
5,918 |
|
|
13,458 |
|
|
12,054 |
|
|
|
|
|
|
|
|
Provision for loan losses |
|
- |
|
|
760 |
|
|
- |
|
|
1,648 |
|
|
|
|
|
|
|
|
Net interest income after provision for loan
losses |
|
6,710 |
|
|
5,158 |
|
|
13,458 |
|
|
10,406 |
|
|
|
|
|
|
|
|
Noninterest
income |
|
|
|
|
|
|
|
Gains on sale of loans held for sale |
|
2,310 |
|
|
1,950 |
|
|
4,084 |
|
|
3,127 |
Service charges, fees and commissions |
|
637 |
|
|
514 |
|
|
1,191 |
|
|
1,002 |
Life insurance income |
|
100 |
|
|
110 |
|
|
198 |
|
|
188 |
Other |
|
2 |
|
|
2 |
|
|
10 |
|
|
14 |
Gain on sales of available-for-sale securities |
|
- |
|
|
213 |
|
|
- |
|
|
644 |
|
|
|
|
|
|
|
|
Total noninterest income |
|
3,049 |
|
|
2,789 |
|
|
5,483 |
|
|
4,975 |
|
|
|
|
|
|
|
|
Noninterest
expenses |
|
|
|
|
|
|
|
Salaries and employee benefits |
|
4,076 |
|
|
3,973 |
|
|
7,808 |
|
|
7,327 |
Occupancy |
|
405 |
|
|
382 |
|
|
833 |
|
|
818 |
Equipment |
|
631 |
|
|
569 |
|
|
1,257 |
|
|
1,178 |
Supplies |
|
116 |
|
|
106 |
|
|
234 |
|
|
233 |
Professional, data processing, and other outside expense |
|
1,035 |
|
|
970 |
|
|
1,949 |
|
|
1,894 |
Marketing |
|
238 |
|
|
179 |
|
|
511 |
|
|
315 |
Credit expense |
|
284 |
|
|
276 |
|
|
560 |
|
|
472 |
Other real estate expenses |
|
7 |
|
|
21 |
|
|
73 |
|
|
120 |
FDIC insurance expense |
|
123 |
|
|
87 |
|
|
288 |
|
|
144 |
Other |
|
322 |
|
|
372 |
|
|
613 |
|
|
631 |
Total noninterest expenses |
|
7,237 |
|
|
6,935 |
|
|
14,126 |
|
|
13,132 |
|
|
|
|
|
|
|
|
Income before income taxes |
|
2,522 |
|
|
1,012 |
|
|
4,815 |
|
|
2,249 |
|
|
|
|
|
|
|
|
Income tax expense |
|
508 |
|
|
191 |
|
|
966 |
|
|
433 |
|
|
|
|
|
|
|
|
Net Income |
$ |
2,014 |
|
$ |
821 |
|
$ |
3,849 |
|
$ |
1,816 |
|
|
|
|
|
|
|
|
Weighted average shares
outstanding - basic (1) |
|
4,748,356 |
|
|
4,773,380 |
|
|
4,757,480 |
|
|
4,778,112 |
|
|
|
|
|
|
|
|
Weighted average shares
outstanding - diluted (1) |
|
4,748,356 |
|
|
4,773,380 |
|
|
4,757,480 |
|
|
4,778,112 |
|
|
|
|
|
|
|
|
Net income per common share -
basic (1) |
$ |
0.42 |
|
$ |
0.17 |
|
$ |
0.81 |
|
$ |
0.38 |
|
|
|
|
|
|
|
|
Net income per common share -
diluted (1) |
$ |
0.42 |
|
$ |
0.17 |
|
$ |
0.81 |
|
$ |
0.38 |
(1) Shares and per share amounts for all periods have been
adjusted to reflect a 10% stock dividend declared in June 2021.
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