Core Insights - Bank of the James Financial Group, Inc. reported strong financial performance for the second quarter and first half of 2025, with net income increasing to $2.70 million or $0.60 per share, compared to $2.15 million or $0.47 per share in the same period of 2024 [2][3][10] - The company demonstrated growth in commercial lending, mortgage originations, and core deposits, establishing a solid base for continued positive financial performance [3][6] - The net interest margin improved to 3.45% in the second quarter of 2025, the highest in several quarters, reflecting effective management of loan yields and interest expenses [4][15] Financial Performance - Net interest income for the second quarter of 2025 was $8.25 million, up 16% from $7.09 million in the second quarter of 2024, while total interest income rose to $11.64 million, a 6% increase year-over-year [10][11][35] - Total interest expense decreased by 12% to $3.39 million in the second quarter of 2025, contributing to a net interest income after recovery of credit losses of $8.78 million, up 22% from the previous year [13][35] - Noninterest income remained stable at $4.08 million in the second quarter of 2025, with contributions from commercial treasury services and wealth management fees [16][35] Asset Quality and Growth - Loans, net of allowance for credit losses, increased to $649.09 million at June 30, 2025, from $636.55 million at December 31, 2024, driven by growth in commercial real estate loans [10][18][19] - The ratio of nonperforming loans to total loans was 0.28% at June 30, 2025, indicating strong asset quality, with no other real estate owned [22][23] - Total assets reached $1.004 billion at June 30, 2025, up from $979.24 million at December 31, 2024, reflecting increases in securities and loan growth [18][36] Shareholder Value - Stockholders' equity grew to $71.67 million at June 30, 2025, from $64.87 million at December 31, 2024, with a book value per share of $15.77, up from $14.28 [25][36] - The company declared a quarterly dividend of $0.10 per common share, payable on September 26, 2025, to stockholders of record as of September 12, 2025 [10][35] Strategic Initiatives - The company successfully retired approximately $10 million in capital notes, expected to reduce annual interest expenses by approximately $327,000, enhancing financial stability [7][8] - A balanced revenue stream from various sources, including commercial and retail banking, has provided predictable earnings amid economic challenges [6][10]