Bank of the James reports dip in annual net income

LYNCHBURG, Va. - Bank of the James Financial Group, Inc. (NASDAQ:BOTJ), the parent company of Bank of the James and Pettyjohn, Wood & White, Inc., disclosed its unaudited financial results for the fourth quarter and full year ended December 31, 2024. The bank, serving various Virginia markets, reported a net income of $1.62 million for the quarter, down from $2.11 million in the same period the previous year. Annual net income also decreased to $7.94 million from $8.70 million year-over-year.

CEO Robert R. Chapman III highlighted the company’s diverse revenue streams and regional market presence as drivers of strong financial performance despite economic challenges. He pointed to a positive trend in yields on earning assets due to new and repriced loans in a stabilizing interest rate environment, contributing to net interest margin expansion in the second half of 2024.

Noninterest income rose 18% from the previous year, attributed to commercial treasury management, wealth management through PWW, and gains from residential mortgage sales. Total (EPA:TTEF) loans, net, grew by 6%, with commercial real estate loans leading the expansion. The bank’s mortgage lending team was commended for maintaining its position in the market.

Asset quality ratios and nonperforming loans remained at low levels, reflecting effective credit management. Total deposits saw a slight increase, and the bank expanded its deposit-gathering capabilities by opening new locations in Buchanan and Nellysford, Virginia.

Total assets increased modestly to $979.24 million, while total deposits grew to $882.40 million. The bank’s asset quality and shareholder value measures remained strong, with nonperforming loans to total loans ratio at 0.25% and an 8% growth in stockholders’ equity. The company’s market capitalization stands at $63.42 million, with a one-year total return of 18.96%. InvestingPro analysis reveals strong profitability metrics, including a return on equity of 14% and a healthy free cash flow yield of 12%. The company’s market capitalization stands at $63.42 million, with a one-year total return of 18.96%. InvestingPro analysis reveals strong profitability metrics, including a return on equity of 14% and a healthy free cash flow yield of 12%.

The bank’s fourth-quarter and full-year performance were impacted by higher noninterest expenses, including a one-time fee related to a contract negotiation with a credit/debit card processor. However, the bank expects to recognize incentive payments and savings from the contract in the future.

Total assets increased modestly to $979.24 million, while total deposits grew to $882.40 million. The bank’s asset quality and shareholder value measures remained strong, with nonperforming loans to total loans ratio at 0.25% and an 8% growth in stockholders’ equity.

The information in this article is based on a press release statement from Bank of the James Financial Group, Inc.

In other recent news, Bank of the James Financial Group Inc. announced its quarterly earnings results, reporting a slight decrease in third-quarter net income to $1.99 million from $2.08 million in the same period the previous year. The nine-month net income also saw a dip to $6.33 million from $6.60 million. Despite these decreases, the bank’s total interest income for the quarter rose by 14% year-over-year, and noninterest income saw a 19% increase, driven by wealth management fee income, treasury services, and gains from mortgage loan sales.

The company also declared a quarterly cash dividend of $0.10 per share, a move that aligns with its regular practice of providing returns to shareholders. This dividend is scheduled to be paid to shareholders of record as of the close of business in March 2025. The announcement, made in a recent 8-K filing with the United States Securities and Exchange Commission, marks the 11th consecutive year of dividend payments by the company, with increases seen in each of the last four years.

In terms of expansion, Bank of the James has opened new locations in Buchanan and Nellysford, Virginia, contributing to deposit growth. The company also announced plans to expand its presence in the Roanoke, Lexington, and Charlottesville markets with new offices opening in the second quarter of 2024. These recent developments reflect the company’s ongoing growth and financial resilience.

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