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].
Bank of the James Financial (BOTJ) - 2024 Q4 - Annual Results