Core Insights - The company reported a net income of $842,000 for Q1 2025, a significant decrease from $2.19 million in Q1 2024, resulting in earnings per share of $0.19 compared to $0.48 a year earlier [2][14] - The decrease in earnings was primarily due to a one-time expense of approximately $1 million related to a consultant for negotiating a contract with the core service provider, which is expected to yield long-term cost savings [4][10] - The company maintained a strong cash position, allowing it to pay off approximately $10 million of capital notes without raising new capital, which will reduce annual interest expenses by about $327,000 [5] Financial Performance - Total interest income increased by 6.90% to $11.23 million in Q1 2025 from $10.51 million in Q1 2024, driven by higher yields on loans and growth in commercial real estate loans [12][14] - Net interest income after provision for credit losses rose to $7.58 million, compared to $7.50 million a year earlier, with a net interest margin improvement to 3.25% from 3.02% [11][15] - Noninterest income was stable at $3.28 million, with contributions from commercial treasury services and wealth management activities [16][14] Asset Quality and Growth - Total assets grew by 3% to $1.01 billion at March 31, 2025, from $979.24 million at December 31, 2024, with loans net of allowance for credit losses increasing to $642.39 million [18][24] - The ratio of nonperforming loans to total loans was 0.28%, indicating strong asset quality, with total nonperforming loans at $1.80 million [22][24] - The company added two experienced commercial relationship managers to enhance its commercial lending capabilities and expand market share [8][9] Shareholder Value - Stockholders' equity increased to $68.35 million at March 31, 2025, up from $64.87 million at December 31, 2024, with a book value per share rising to $15.04 from $14.28 [24][14] - The board of directors approved a quarterly dividend of $0.10 per common share, reflecting the company's commitment to returning value to shareholders [14]

Financial Performance - Total interest income increased to $44,643,000 in 2024 from $39,362,000 in 2023, representing a growth of 8.2%[380] - Net income decreased to $7,944,000 in 2024 compared to $8,704,000 in 2023, a decline of 8.7%[381] - Noninterest income rose to $15,137,000 in 2024, up from $12,867,000 in 2023, marking an increase of 17.7%[381] - Total noninterest expenses increased to $35,105,000 in 2024 from $32,507,000 in 2023, reflecting a rise of 8.1%[381] - Earnings per common share decreased to $1.75 in 2024 from $1.91 in 2023, a decline of 8.4%[381] - The net revenue for the consolidated entity was $44.373 million in 2024, up from $42.607 million in 2023, reflecting an increase of approximately 4.1%[503] Assets and Liabilities - The Bank's total assets increased to $979.2 million as of December 31, 2024, compared to $969.4 million as of December 31, 2023, reflecting a growth of approximately 1.8%[379] - The Bank's total liabilities increased to $914.4 million in 2024 from $909.3 million in 2023, reflecting a growth of approximately 0.6%[379] - The Bank's gross loan portfolio is approximately $643.6 million with an allowance for credit losses of $7.0 million as of December 31, 2024[369] - The balance of cash and cash equivalents at the end of the period was $73,309,000 in 2024, slightly down from $74,838,000 in 2023[388] Deposits and Loans - The Bank's total deposits rose to $882.4 million in 2024, up from $878.5 million in 2023, indicating an increase of about 0.5%[379] - Total loans as of December 31, 2024, amounted to $643,596,000, an increase from $609,333,000 as of December 31, 2023[463] - Total loans held for investment, net of allowances, increased to $636.6 million at December 31, 2024, up from $601.9 million in 2023, representing a growth of approximately 5.8%[501] Credit Quality and Allowance for Credit Losses - The allowance for credit losses decreased to $7,044,000 as of December 31, 2024, from $7,412,000 as of December 31, 2023[465] - The company actively monitors credit risk through comprehensive underwriting standards and regular portfolio reviews[461] - The total provision for credit losses included charge-offs of $236 million and recoveries of $209 million, highlighting the bank's management of credit risk[467] - The allowance for credit losses for unfunded loan commitments was $543,000 and $665,000 at December 31, 2024 and 2023, respectively[487] Investments and Securities - The Bank's securities available-for-sale decreased to $187.9 million in 2024 from $216.5 million in 2023, a decline of about 13.2%[379] - The company’s total amortized cost of securities as of December 31, 2024, was $216,921,000, with a fair value of $187,916,000, reflecting gross unrealized losses of $29,014,000[450] - The total available-for-sale securities decreased from $216,510,000 in 2023 to $187,916,000 in 2024, reflecting a reduction of about 13.2%[555] Branch Growth and Strategic Plans - The Bank plans to evaluate additional locations for future branch growth and may open a new branch within the next 18 months if a suitable location is found[208] - The Bank is utilizing the internet to enhance growth plans, offering online account access and management functions[209] Capital Ratios and Compliance - As of December 31, 2024, the Bank's total capital to risk-weighted assets ratio was 12.84%, exceeding the minimum requirement of 10.50%[534] - The Bank's Tier 1 capital to risk-weighted assets ratio was 11.92%, above the required minimum of 8.50%[534] - The Bank is categorized as well capitalized under the regulatory framework for prompt corrective action as of December 31, 2024[533] Miscellaneous - The company reported a total of $1,664 million in special mention loans, indicating a focus on monitoring potential credit risks[476] - The company recorded no liabilities for unrecognized tax benefits as of December 31, 2024, and 2023[430] - The Bank had no Other Real Estate Owned (OREO) as of December 31, 2024 and 2023, maintaining a consistent position[489]

Financial Performance - Net income for the fourth quarter of 2024 was $1.62 million, down 23.2% from $2.11 million in the same quarter of 2023, while full-year net income decreased to $7.94 million from $8.70 million [2][12]. - Net income decreased by 8.73% to $7,944,000 in 2024 compared to $8,704,000 in 2023 [40]. - Return on average assets decreased to 0.63% in 2024 from 0.87% in 2023, a decline of 0.24 percentage points [42]. - Return on average equity fell to 9.39% in 2024 compared to 16.69% in 2023, a decrease of 7.30 percentage points [42]. Income and Revenue - Total interest income for 2024 increased by 13% to $44.64 million compared to $39.36 million in 2023, driven by higher commercial loan interest rates and new loans [12][14]. - Noninterest income rose 18% year-over-year to $15.14 million in 2024, supported by gains on loan sales and wealth management fees [5][18]. - Total interest income increased by 13.42% to $44,643,000 in 2024 from $39,362,000 in 2023 [39]. - Noninterest income grew by 17.64% to $15,137,000 in 2024 from $12,867,000 in 2023 [41]. Loans and Assets - Total loans, net of allowance for credit losses, increased by 6% to $636.55 million at December 31, 2024, with commercial real estate loans growing by 9% [6][22]. - Loans, net increased by 5.75% to $636,552,000 as of December 31, 2024, up from $601,921,000 in 2023 [41]. - Total assets increased by 1.02% to $979,244,000 as of December 31, 2024, from $969,371,000 in 2023 [41]. - Loans held for sale increased significantly by 187.44% to $3,616,000 in 2024 from $1,258,000 in 2023 [41]. Deposits and Equity - Total deposits increased to $882.40 million at December 31, 2024, up from $878.46 million a year earlier, reflecting a focus on core deposits [9][27]. - Total deposits rose by 0.45% to $882,404,000 in 2024 from $878,459,000 in 2023 [41]. - Stockholders' equity rose by 8% to $64.87 million at December 31, 2024, with book value per share increasing to $14.28 from $13.21 a year earlier [10][28]. - Stockholders' equity increased by 8.04% to $64,865,000 in 2024 compared to $60,039,000 in 2023 [41]. - Book value per share improved to $14.28 in 2024 from $13.21 in 2023, reflecting a $1.07 increase [41]. Expenses and Efficiency - Noninterest expense for the full year of 2024 was $35.11 million, up from $32.51 million in 2023, impacted by a one-time payment related to a debit card processing contract [20][12]. - Interest expense surged by 60.12% to $15,407,000 in 2024 from $9,622,000 in 2023 [41]. - The efficiency ratio increased to 82.62% in 2024, up from 79.64% in 2023, reflecting a rise of 2.98 percentage points [42]. Credit Quality - The ratio of nonperforming loans to total loans was 0.25% at December 31, 2024, indicating strong asset quality management [26]. - Total nonperforming loans surged by 319.44% to $1,640 million in 2024 from $391 million in 2023 [42]. - Nonperforming loans to total loans ratio increased to 0.25% in 2024 from 0.06% in 2023, an increase of 0.19 percentage points [42]. - The allowance for credit losses for loans to total loans decreased to 1.09% in 2024 from 1.22% in 2023, a change of -0.12 percentage points [42]. - The ending balance of allowance for credit losses dropped by 4.96% to $7,044 million in 2024 from $7,412 million in 2023 [42]. - Provision for credit losses showed a recovery of $39 million in 2024 compared to a provision of $123 million in 2023, a change of -131.71% [42]. - Charge-offs were recorded at $0 million in 2024, a significant decrease from $40 million in 2023, marking a -100.00% change [42]. Future Outlook - The company anticipates recognizing up to $438,000 in incentive payments from a new card processing contract, with expected long-term benefits of $2.1 million [12].

Core Insights - The company reported a decline in net income for both the fourth quarter and the full year of 2024 compared to the previous year, with net income of $1.62 million ($0.36 per share) for Q4 2024, down from $2.11 million ($0.45 per share) in Q4 2023, and full-year net income of $7.94 million ($1.75 per share), down from $8.70 million ($1.91 per share) in 2023 [2][10][37] Financial Performance - Total interest income increased to $44.64 million for the full year of 2024, up 13% from $39.36 million in 2023, primarily due to higher rates on commercial loans and new loans reflecting the prevailing rate environment [13][17] - Noninterest income rose 18% to $15.14 million in 2024, driven by gains on loan sales, commercial treasury services, and wealth management fees [5][18][19] - Total loans, net of allowance for credit losses, increased by 6% to $636.55 million at the end of 2024, with commercial real estate loans growing by 9% [6][17][21] Asset Quality and Management - The ratio of nonperforming loans to total loans was 0.25% at the end of 2024, indicating strong asset quality, although this was an increase from 0.06% at the end of 2023 [25][40] - The allowance for credit losses on loans to total loans was 1.09% at the end of 2024, down from 1.22% a year earlier, reflecting effective credit management [25][40] Shareholder Value - Stockholders' equity increased by 8% to $64.87 million at the end of 2024, with retained earnings rising to $42.80 million from $36.68 million a year earlier [9][27][28] - The company declared a quarterly dividend of $0.10 per share, reflecting its commitment to returning value to shareholders [10][28] Operational Highlights - The company opened new strategic locations in Buchanan and Nellysford, Virginia, enhancing its deposit-gathering capabilities [8] - Noninterest expense for the full year of 2024 was $35.11 million, up from $32.51 million in 2023, influenced by a one-time payment related to a contract with a debit card processor [20][37]

Financial Performance - The company reported a significant increase in net interest income, driven by a rise in interest rates, contributing to a year-over-year growth of 15%[132]. - Net income for the three and nine months ended September 30, 2024, was $1,990,000 and $6,326,000, respectively, compared to $2,078,000 and $6,596,000 for the same periods in 2023[182]. - Interest income increased to $11,563,000 and $33,007,000 for the three and nine months ended September 30, 2024, driven by higher interest rates on loans[185]. - Interest expense rose significantly to $4,054,000 and $11,457,000 for the three and nine months ended September 30, 2024, due to increased deposit balances and interest rates[186]. - Net interest income for the three and nine months ended September 30, 2024, was $7,509,000 and $21,550,000, with a net interest margin of 3.16% and 3.07%, respectively[187]. - Noninterest income increased to $3,823,000 and $11,321,000 for the three and nine months ended September 30, 2024, primarily due to growth in wealth management fees and gains on sales of loans[190]. - Noninterest expense increased to $8,776,000 and $25,602,000 for the three and nine months ended September 30, 2024, representing increases of 7.81% and 6.27% respectively compared to the same periods in 2023[198]. - The effective tax rate for the three and nine months ended September 30, 2024, was 19.24% and 19.44%, lower than the rates of 19.74% and 19.82% for the same periods in 2023[202]. Asset and Liability Management - Total assets increased by 3.99% to $1,008,063,000 as of September 30, 2024, compared to $969,371,000 at December 31, 2023[148]. - Total deposits rose by 3.32% to $907,610,000 from $878,459,000 during the same period, driven by increases in time deposits and savings deposits[149]. - Total loans, excluding loans held for sale, increased by 4.07% to $634,190,000 from $609,333,000, primarily due to growth in commercial real estate and residential loans[150]. - Total uninsured deposits were approximately $267,498,000, representing about 29.47% of total deposits as of September 30, 2024[173]. - Total liabilities rose to $925.568 billion in 2024, compared to $894.115 billion in 2023, marking an increase of about 3.5%[207]. - Stockholders' equity increased to $60.564 billion in 2024 from $51.274 billion in 2023, showing a growth of approximately 18.1%[207]. - The allowance for credit losses decreased to $7.091 billion in 2024 from $7.611 billion in 2023, a reduction of approximately 6.8%[206]. Branch Expansion and Strategy - The company plans to open a new branch in Lynchburg, Virginia, in 2025, following the acquisition of a property previously used as a bank branch[137]. - The company has identified additional potential branch locations in Virginia, including Nellysford, with plans to relocate the Temporary Nellysford Branch by fall 2025[137]. - The company continuously evaluates potential new branch locations to enhance its service offerings and market presence[135]. - The Bank anticipates that each new branch will become profitable within 12 to 18 months of operation, with potential expansion in the next 12 months[139]. - The company has a community-oriented banking strategy, focusing on providing services to individuals and small businesses in Central Virginia and expanding to new areas[128]. Risk Management - The allowance for credit losses (ACLL) is estimated using a discounted cash flow model, reflecting management's expectations of probable losses in the loan portfolio[125]. - The company is subject to various risks, including economic and regulatory changes, which could materially affect future financial results[121]. - The Bank maintains a strong credit underwriting process and actively monitors its commercial real estate loan portfolio to manage risk effectively[155]. Compliance and Reporting - The company emphasized its commitment to compliance with the Sarbanes-Oxley Act, as evidenced by certifications from key executives[31.1][31.2]. - The financial report is formatted in eXtensible Business Reporting Language (XBRL), enhancing data accessibility and analysis[101]. - The company is focused on maintaining transparency and accuracy in its financial reporting practices[31.1][31.2]. - The report included consolidated statements of cash flows for the nine months ended September 30, 2024, indicating cash management and liquidity status[101]. - The report was signed by the President and Principal Executive Officer, Robert R. Chapman III, and the Principal Financial Officer, J. Todd Scruggs, ensuring accountability[214].

Financial Performance - Net income for Q3 2024 was $1.99 million, down from $2.08 million in Q3 2023, while net income for the first nine months of 2024 was $6.33 million compared to $6.60 million in the same period last year[1]. - Noninterest income for Q3 2024 increased by 19% to $3.82 million, and for the first nine months, it rose by 17% to $11.32 million compared to the same period last year[10]. - Net interest income for the three months ended September 30, 2024, was $7,509 thousand, compared to $7,364 thousand for the same period in 2023, reflecting an increase of 2.0%[20]. - Net income for the three months ended September 30, 2024, was $1,990 thousand, down from $2,078 thousand in the same period of 2023, a decrease of 4.2%[21]. - Basic net income per share decreased to $0.44 for the three months ending September 30, 2024, from $0.46 in the same period last year[23]. Asset and Loan Growth - Total assets grew to $1.01 billion at September 30, 2024, up from $969.37 million at December 31, 2023, primarily due to loan portfolio growth[11]. - Loans, net of allowance for credit losses, increased to $627.11 million at September 30, 2024, compared to $601.92 million at December 31, 2023[7]. - Total assets increased to $1,008,063 thousand as of September 30, 2024, up from $969,371 thousand at December 31, 2023, representing a growth of approximately 4.5%[17]. - Loans, net of allowance for credit losses, increased to $627,112 thousand as of September 30, 2024, compared to $601,921 thousand at December 31, 2023, a growth of 4.2%[17]. Deposit Growth - Total deposits rose to $907.61 million at September 30, 2024, from $878.46 million at December 31, 2023[11]. - Total deposits increased to $907,610 thousand as of September 30, 2024, from $878,459 thousand at December 31, 2023, an increase of 3.0%[17]. - Total deposits rose by 3.32% to $907,610,000 as of September 30, 2024, compared to $878,459,000 at the end of 2023[24]. Equity and Book Value - Book value per share increased to $15.15 at September 30, 2024, up from $13.21 at December 31, 2023[13]. - Stockholders' equity increased to $68,834 thousand as of September 30, 2024, from $60,039 thousand at December 31, 2023, representing a growth of 14.6%[19]. - Stockholders' equity increased by 14.65% to $68,834,000 from $60,039,000 at the end of 2023[24]. Interest Income and Margin - Total interest income for Q3 2024 increased by 14% to $11.56 million, and for the first nine months, it rose by 15% to $33.01 million compared to the previous year[5]. - The net interest margin for Q3 2024 was 3.16%, slightly lower than 3.21% in Q3 2023 but improved from 3.02% in Q2 2024[8]. - Interest income for the three months ending September 30, 2024, increased by 14.00% to $11,563,000 compared to $10,143,000 for the same period in 2023[23]. Nonperforming Loans and Credit Losses - The ratio of nonperforming loans to total loans was 0.20% at September 30, 2024, indicating strong asset quality[11]. - Total nonperforming loans surged by 231.20% to $1,295,000 compared to $391,000 at the end of 2023[30]. - The allowance for credit losses for loans to total loans was 1.12% as of September 30, 2024, down from 1.22% at the end of 2023[31]. - The provision for credit losses for the three months ended September 30, 2024, was $92 thousand, compared to a recovery of $164 thousand in the same period of 2023[20]. Expenses and Efficiency - The company reported a total noninterest expense of $8,776 thousand for the three months ended September 30, 2024, compared to $8,140 thousand in the prior year, an increase of 7.8%[21]. - The efficiency ratio for the three months ending September 30, 2024, was 77.44%, slightly up from 77.05% in the same period last year[27]. Dividends - A quarterly dividend of $0.10 per common share was approved, to be paid on December 6, 2024[7].

Core Viewpoint - Bank of the James Financial Group, Inc. reported stable earnings and growth in shareholder value despite challenges from high interest rates, with a focus on strong asset quality and diversified income streams [1][2][3]. Financial Performance - Net income for Q3 2024 was $1.99 million ($0.44 per share), a decrease from $2.08 million ($0.46 per share) in Q3 2023. For the first nine months of 2024, net income was $6.33 million ($1.39 per share), down from $6.60 million ($1.44 per share) in the same period last year [1][6][24]. - Total interest income for Q3 2024 was $11.56 million, a 14% increase from $10.14 million in Q3 2023. For the first nine months, total interest income rose 15% to $33.01 million from $28.82 million [6][8][25]. - Noninterest income increased by 19% in Q3 2024 to $3.82 million compared to $3.20 million in Q3 2023, and for the first nine months, it rose 17% to $11.32 million from $9.70 million [10][11][25]. Asset and Loan Growth - Total assets grew to $1.01 billion as of September 30, 2024, up from $969.37 million at the end of 2023, primarily due to loan growth [12][16]. - Loans, net of allowance for credit losses, increased to $627.11 million from $601.92 million at the end of 2023, reflecting stability and growth in commercial real estate and residential mortgage loans [12][15][26]. - Total deposits rose to $907.61 million as of September 30, 2024, compared to $878.46 million at the end of 2023, with significant growth in time deposits [16][26]. Shareholder Value - Book value per share increased to $15.15 from $13.21 at the end of 2023, reflecting strong financial performance [17][26]. - Total stockholders' equity rose to $68.83 million from $60.04 million at the end of 2023, with retained earnings increasing to $41.64 million from $36.68 million [17][26]. Strategic Initiatives - The company opened new strategic locations in Buchanan and Nellysford, Virginia, which have shown strong initial performance [4]. - The bank's focus on digital banking capabilities and commercial cash management services has contributed to customer retention and growth in deposits [5][10].

Financial Performance - The company reported a significant increase in net interest income, driven by a rise in interest rates, resulting in a year-over-year growth of 15%[119] - Net income for the three and six months ended June 30, 2024, was $2,148,000 and $4,335,000, down from $2,534,000 and $4,518,000 in the same periods of 2023, representing a decrease of 15.2% and 4.0% respectively[152] - Basic and diluted earnings per share for the three and six months ended June 30, 2024, were $0.47 and $0.95, compared to $0.56 and $0.99 for the same periods in 2023, reflecting a decline of 16.1% and 4.0% respectively[152] - Interest income increased to $10,935,000 and $21,444,000 for the three and six months ended June 30, 2024, from $9,583,000 and $18,681,000 in 2023, marking an increase of 14.1% and 9.0% respectively[152] - Interest expense rose significantly to $3,844,000 and $7,403,000 for the three and six months ended June 30, 2024, compared to $2,238,000 and $3,694,000 in 2023, an increase of 72.0% and 100.0% respectively[154] - Net interest income for the three and six months ended June 30, 2024, was $7,091,000 and $14,041,000, down from $7,345,000 and $14,987,000 in 2023, representing decreases of 3.5% and 6.3% respectively[155] - Noninterest income increased to $4,191,000 and $7,498,000 for the three and six months ended June 30, 2024, from $3,444,000 and $6,488,000 in 2023, reflecting increases of 21.7% and 15.6% respectively[158] - Noninterest expense for the three and six months ended June 30, 2024, increased to $8,739,000 and $16,827,000, up from $7,876,000 and $15,951,000 in 2023, increases of 10.96% and 5.49% respectively[166] Asset and Liability Management - Total assets increased by 0.89% to $978,011,000 as of June 30, 2024, compared to $969,371,000 at December 31, 2023[131] - Total deposits rose by 0.73% to $884,902,000 on June 30, 2024, from $878,459,000 at the end of 2023[131] - Total loans, excluding loans held for sale, increased by 2.35% to $616,088,000 on June 30, 2024, from $601,921,000 at December 31, 2023[132] - Total earning assets increased to $941,099,000 in 2024, generating interest income of $10,940,000 with an average rate of 4.68%, compared to $892,900,000 and $9,588,000 at 4.31% in 2023[173] - Total interest-bearing deposits increased to $755,564,000 in 2024, with interest expense of $3,649,000, compared to $710,412,000 and $2,036,000 in 2023[174] - Total liabilities and stockholders' equity increased to $982,441,000 from $941,593,000[178] Credit Quality and Losses - The company’s allowance for credit losses is based on a discounted cash flow model, reflecting management's estimates of probable losses in the loan portfolio[114] - The allowance for credit losses was 1.12% of total loans outstanding as of June 30, 2024, down from 1.22% and 1.23% at December 31, 2023, and June 30, 2023 respectively[168] - Charged-off loans for the three and six months ended June 30, 2024, were $19,000 and $84,000, compared to $19,000 and $52,000 in 2023[169] - The allowance for loan losses decreased to $6,940,000 in 2024 from $7,738,000 in 2023, indicating improved asset quality[173] Branch Expansion and Market Strategy - The company plans to open additional branches in Virginia, with expectations that each new branch will become profitable within 12 to 18 months of operation[125] - The company is currently evaluating potential branch locations and may acquire properties for expansion in the next 12 months[125] - The company has identified properties for future branch locations, including a permanent branch in Nellysford, Virginia, expected to open in 2025[124] - The estimated cost for improvements to a new branch in Campbell County is projected to be between $900,000 and $1,500,000[124] - The company aims to enhance profitability by increasing market share and providing additional services to customers[119] - The company’s primary market area has expanded beyond Central Virginia to include Roanoke, Charlottesville, Harrisonburg, Blacksburg, Lexington, and Rustburg[117] Regulatory and Compliance - The company continues to monitor and ensure compliance with SEC rules and regulations[180] - Disclosure controls and procedures were evaluated as effective by the principal executive and financial officers[180] - There were no significant changes in internal controls over financial reporting during the quarter ended June 30, 2024[181] - The company is not involved in any pending legal proceedings, other than routine litigation[182] - The company reported no significant market risks applicable to its operations[180] Investment and Securities - As of June 30, 2024, the investment advisory firm PWW, acquired by the company, manages approximately $789 million in assets[118] - Securities available-for-sale decreased to $206,177,000 on June 30, 2024, from $216,510,000 at December 31, 2023[139] - The Bank has liquid assets totaling $280,804,000 as of June 30, 2024, including cash and available-for-sale investments[141] - The Bank's investment in Federal Home Loan Bank of Atlanta stock increased to $672,000 at June 30, 2024, from $643,000 at December 31, 2023[140] Taxation - For the three and six months ended June 30, 2024, the income tax expense was $518,000 and $1,053,000, respectively, compared to $633,000 and $1,120,000 for the same periods in 2023, reflecting an effective tax rate decrease to 19.43% and 19.54% from 19.99% and 19.87%[171] - The effective tax rate was lower than the statutory corporate tax rate due to federal income tax benefits from specific tax treatments[171]

Financial Performance - Net interest income after recovery of credit losses for Q2 2024 was $7.21 million, down from $7.60 million in Q2 2023, representing a decrease of 5.13%[2] - For the first half of 2024, net interest income after recovery of credit losses was $14.72 million, compared to $15.10 million in the same period last year, a decline of 2.52%[2] - Total interest income for Q2 2024 was $10.94 million, compared to $9.58 million in Q2 2023, representing an increase of 14.19%[10] - Total interest income for Q2 2024 was $10.94 million, a 14% increase from $9.58 million in Q2 2023, and $21.44 million for the first half of 2024, up 15% from $18.68 million a year earlier[23] - Net income for the three months ended June 30, 2024, was $2.15 million, or $0.47 per share, compared to $2.53 million, or $0.56 per share for the same period in 2023, reflecting a decrease of 15.23%[29] - Interest income increased by 14.11% year-over-year, reaching $10.94 million for the three months ended June 30, 2024[27] - Noninterest income for the first half of 2024 was $7.50 million, up from $6.49 million in the same period last year, a growth of 15.59%[10] - Noninterest income rose by 21.69% year-over-year, totaling $4.19 million for the three months ended June 30, 2024[27] Asset and Equity Growth - Total assets as of June 30, 2024, were $978.01 million, an increase from $969.37 million as of December 31, 2023, reflecting a growth of 0.66%[8] - Stockholders' equity rose to $61.71 million as of June 30, 2024, up from $60.04 million at the end of 2023, indicating an increase of 2.78%[16] - The company's total assets increased by 0.89% to $978.01 million as of June 30, 2024, from $969.37 million at the end of 2023[27] - Stockholders' equity rose by 2.78% to $61.71 million as of June 30, 2024, compared to $60.04 million at the end of 2023[27] Deposits and Liabilities - Total deposits increased to $884.90 million as of June 30, 2024, compared to $878.46 million at the end of 2023, marking a rise of 0.50%[15] - Total deposits grew by 0.73% to $884.90 million as of June 30, 2024, compared to $878.46 million at the end of 2023[27] - Total liabilities as of June 30, 2024, were $916.31 million, compared to $909.33 million at the end of 2023, reflecting a slight increase of 0.22%[15] Loan Performance - Loans held for sale increased by 9.77% to $4.13 million in Q2 2024 from $3.77 million in Q2 2023[11] - Loans held for sale surged by 284.34%, amounting to $4.84 million as of June 30, 2024, compared to $1.26 million at the end of 2023[27] - The ratio of nonperforming loans to total loans was 0.13% at June 30, 2024, up from 0.06% at December 31, 2023[24] - Total nonperforming loans increased to $797,000 at June 30, 2024, a 103.84% increase from $391,000 at December 31, 2023[22] - The allowance for credit losses to total loans decreased to 1.12% at June 30, 2024, from 1.21% at December 31, 2023[19] Strategic Initiatives - The company opened two new branches in Virginia to enhance outreach and deposit-gathering capabilities[24] - A quarterly dividend of $0.10 per common share was approved, payable on September 20, 2024[24] Market Outlook - The company maintained exceptional liquidity and asset quality while growing loans and deposits[30] - The competitive landscape remains favorable, with opportunities arising from larger banks reducing services in the company's markets[30] - The company anticipates continued strong performance and positive economic indicators supporting financial strength in the second half of 2024[30]

Robert R. Chapman III, CEO of the Bank, commented: "The Company's earnings performance continued to demonstrate success in responding to prevailing market conditions, providing financial solutions for our commercial and retail customers and efficiently managing our operations. We grew loans and deposits, interest income and noninterest income year-over-year, while maintaining exceptional liquidity and asset quality. "Business conditions and residential real estate activity in our served markets has been hea ...