Bank of the James Announces Fourth Quarter, Full Year 2025 Financial Results

Core Insights - Bank of the James Financial Group, Inc. reported record annual earnings of $9.02 million for 2025, reflecting a 13.6% increase from 2024 [3][4] - The company achieved a net interest income of $32.81 million for the full year 2025, up 12.2% from $29.24 million in 2024 [3][4] - Total assets reached $1.04 billion at the end of 2025, marking a 6.1% increase from $979.24 million at the end of 2024 [4][11] Financial Performance - Fourth-quarter net income was $2.72 million, compared to $1.62 million in the same quarter of 2024, with earnings per share rising to $0.60 from $0.36 [4][21] - Net interest margin improved to 3.44% in Q4 2025, up from 3.18% in Q4 2024, while the full year margin was 3.39%, compared to 3.11% in 2024 [4][25] - Noninterest income for the full year increased by 4.7% to $15.85 million, driven by gains on loan sales and wealth management fees [8][21] Asset and Liability Management - Total deposits increased to $937.13 million at December 31, 2025, a rise of 6.2% from $882.40 million in 2024, with core deposits growing by 7.7% [12][4] - Loans, net of allowance for credit losses, rose to $661.36 million, reflecting a 3.9% increase from $636.55 million in 2024 [4][11] - Stockholders' equity increased by 23.4% to $80.05 million, with book value per share rising to $17.62 from $14.28 [13][4] Expense Management - Noninterest expense decreased by 4.2% in Q4 2025 to $9.11 million, attributed to reduced data processing costs and lower professional fees [9][10] - The efficiency ratio improved significantly to 70.81% in Q4 2025 from 82.62% in Q4 2024, indicating better cost management [4][25] - Interest expense declined by 12.1% in Q4 2025 to $3.47 million, reflecting effective management of deposit pricing and the retirement of capital notes [6][4] Market Position and Strategy - The company serves a diverse range of markets in Virginia, including Lynchburg and surrounding areas, focusing on both commercial and retail banking [1][14] - The management emphasized a continued focus on pricing, costs, and credit quality as key strategies for 2026 [3][4] - Wealth management fees from Pettyjohn, Wood & White, Inc. increased by 10.4% in 2025, contributing positively to overall earnings [4][8]