BANK OF THE JAMES FINANCIAL GROUP, INC. (NASDAQ:BOTJ) Files An 8-K Results of Operations and Financial Condition
Item2.02-Results of Operations and Financial Condition
On Monday, January23, 2017, Bank of the James Financial Group,
Inc. (the Company) issued a press release announcing financial
results for the three and 12 months ended December31, 2016 (the
Press Release). A copy of the Press Release is attached hereto as
Exhibit 99.1.
Item2.06-Material Impairments
On January17, 2017, the Board of Directors of the Bank of the
James (the Bank), a wholly-owned subsidiary of the Company,
concluded that the Bank should reserve $915,000 for one
commercial lending relationship. The provision was made effective
for the quarter and year ended December31, 2016.
This relationship involves two outstanding loans to a commercial
construction contractor with a principal balance on the two notes
totaling approximately $915,000. The Bank has had a long-standing
relationship with the borrower, who has consistently complied
with its obligations as agreed. The Bank has received information
related to the borrowers business that led management to
downgrade the loans to a substandard risk rating. After
evaluating the Banks collateral position and other relevant
facts, management deemed the loans to 50% impaired and therefore
the Bank has added the full amount of the loans to the allowance
for loan losses. The ultimate amount of the impairment may be
lower depending on the amount the Bank ultimately receives from
the borrower.
Reserving this amount resulted in a decrease in the Companys
earnings by approximately $604,000, or $0.14 per basic and
diluted share for the three and 12 months ended December31, 2016.
As of the date of this Current Report on Form 8-K, management
does not anticipate recording additional specific impairment with
respect to this relationship.
Item8.01-Other Events
On January17, 2017, the Board of Directors of the Company
declared a quarterly cash dividend of $0.06 per share of common
stock. The dividend will be paid on or about March24, 2017, to
stockholders of record as of the close of business on March10,
2017. A copy of the Press Release dated January23, 2017
announcing the declaration of the dividend is attached hereto as
Exhibit 99.1.
Item9.01-Financial Statements and Exhibits
| (a) | Financial statements of businesses acquired not applicable |
| (b) | Pro forma financial information not applicable |
| (c) | Shell company transactions not applicable |
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| (d) | Exhibits |
|
ExhibitNo. |
Exhibit Description |
|
| 99.1 |
Bank of the James Financial Group, Inc. Press Release dated January 23, 2017 |
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About BANK OF THE JAMES FINANCIAL GROUP, INC. (NASDAQ:BOTJ)
Bank of the James Financial Group, Inc. is a bank holding company for Bank of the James (Bank). The Bank is a Virginia banking corporation engaged in general retail and commercial banking business. The Company conducts two principal activities: general retail and commercial banking through the Bank and mortgage origination services through Bank of the James Mortgage, a division of the Bank. In addition, the Company provides securities brokerage services through BOTJ Investment, a division of the Bank and acts as an agent for insurance and annuity products through BOTJ Insurance, Inc. (BOTJ Insurance), a subsidiary of the Bank. Other services offered by the Bank include safe deposit boxes, traveler’s checks, direct deposit of payroll and social security checks, automatic drafts for various accounts, treasury management services and credit card merchant services. It also provides brokerage and investment services through the Bank’s Investment division. BANK OF THE JAMES FINANCIAL GROUP, INC. (NASDAQ:BOTJ) Recent Trading Information
BANK OF THE JAMES FINANCIAL GROUP, INC. (NASDAQ:BOTJ) closed its last trading session down -0.33 at 15.25 with 7,578 shares trading hands.