Bank of the James Financial (BOTJ) - 2025 Q3 - Quarterly Results

Earnings Performance - Earnings per share were $0.61 for the third quarter and $1.39 for the first nine months of 2025, compared to $0.44 and $1.39 for the same periods in 2024[3]. - Net income for the three months ended September 30, 2025, was $2.75 million, a 38.29% increase compared to $1.99 million in the same period of 2024[39]. Interest Income and Margin - Total interest income increased by 1.8% to $11.77 million in Q3 2025 and by 4.9% to $34.64 million for the first nine months, driven by higher yields on loans and commercial real estate loan growth[3]. - Net interest income rose 10.5% to $8.30 million in Q3 2025 and 12.62% to $24.27 million for the first nine months compared to the previous year[3]. - The net interest margin improved to 3.44% in Q3 2025 from 3.16% in Q3 2024, and to 3.37% for the first nine months from 3.07% in the prior year[12]. - The net interest margin increased to 3.44%, up 0.28 percentage points year-over-year, indicating better profitability on interest-earning assets[40]. Asset and Loan Growth - Loans, net of the allowance for credit losses, increased to $653.29 million at September 30, 2025, up from $636.55 million at December 31, 2024[6]. - Total assets reached $1.02 billion at September 30, 2025, compared to $979.24 million at December 31, 2024[17]. - Total loans increased by 4.31% year-over-year to $657,028 million, with a 5.66% increase in the year-to-date figure[40]. - Total assets rose by 2.29% year-over-year to $1,017,872 million, reflecting overall growth in the company's balance sheet[40]. Deposits and Equity - Total deposits grew to $919.80 million at September 30, 2025, up from $882.40 million at December 31, 2024[27]. - Stockholders' equity increased to $76.97 million as of September 30, 2025, up from $64.87 million at December 31, 2024, representing a growth of 18.66%[28]. - Total deposits grew by 2.18% year-over-year to $922,270 million, showing continued customer trust[40]. Noninterest Income and Expenses - Noninterest income was stable at $4.17 million in Q3 2025 and $11.53 million for the first nine months, supported by commercial treasury services and wealth management fees[6]. - The efficiency ratio improved to 73.46%, a decrease of 3.98 percentage points compared to the previous year[40]. Credit Quality - The ratio of nonperforming loans to total loans was 0.29% at September 30, 2025, indicating strong asset quality[24]. - Nonperforming loans increased by 15.55% year-over-year to $1,895 million, indicating potential asset quality concerns[42]. - The allowance for credit losses for loans to total loans decreased to 0.95%, down 0.14 percentage points from the previous year[42]. - The provision for credit losses saw a significant decrease of 91.51%, indicating improved credit quality management[40]. Dividends and Retained Earnings - The Company approved a quarterly dividend of $0.10 per common share to be paid on December 5, 2025[6]. - Retained earnings rose to $47.74 million at September 30, 2025, compared to $42.80 million at December 31, 2024, reflecting an increase of 11.36%[28]. - Book value per share increased to $16.94 at September 30, 2025, from $14.28 at December 31, 2024, marking a rise of 18.66%[28].