Bank of the James Financial Group Inc. posted a small increase in net income in the third quarter of 2011 after more than doubling its provisions from last year for bad loans.
Net income was $64,000, or two cents per share, compared to the same time in 2010 when net income was $506,000, or 15 cents a share.
J. Todd Scruggs, executive vice president and chief financial officer, said the bank took an aggressive approach to troubled loans, accounting for much of the difference. The provision for loan losses was increased to $1.27 million in the third quarter of 2011, compared with $600,000 the previous year. He said troubled assets are the bank’s top priority.
“The bank is constantly dealing with non-performing assets,” Scruggs said.
Robert Chapman III, president and chief executive officer, said in a statement the bank’s positive operating results were offset by increased reserves for loan losses, a trend he anticipates continuing in the fourth quarter.
Scruggs said the bank has not added any new non-performing loans. The amount of non-performing loans remains below two percent of total loans, something he said the bank has been at for several quarters.
In the third quarter, the bank also added 269 loans and lines of credit, as well as 861 new deposit accounts, he said.
“We’re concentrating on doing the best we can to serve the customers,” Scruggs said.
The banks assets were at $429.4 million on Sept. 30, a 2.5 percent increase from Dec. 31, 2010.
Total deposits increased to $375.55 million. Last year at the end of the third quarter, it was $364.51 million.
Noninterest income, including fees from mortgage origination, was $1.2 million, a 25 percent increase over the same quarter last year.
Net loans were at $319.32 million at the end of the quarter, compared with $321.12 million last year. Scruggs said it’s a positive sign the bank can maintain loan balances during a time of declining loan demand.
Bank of the James is a 12-year-old bank serving the Region 2000 area with nine full-service branches and one limited service location. Bank of the James Financial Group, Inc., which trades over the counter under the symbol BOJF, stood at $4.05 at the close of the market Monday.
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