Bank of the James Financial Group (BOTJ) Q2 2024 earnings summary

Executive summary

• Net income for Q2 2024 was $2.15 million ($0.47/share), down from $2.53 million ($0.56/share) in Q2 2023; six-month net income was $4.34 million ($0.95/share), down from $4.52 million ($0.99/share) year-over-year.

• Loan and deposit growth, increased interest and noninterest income, and strong asset quality were reported year-over-year.

• Total assets grew to $978.0 million as of June 30, 2024, up 0.89% from year-end 2023.

• Opened two new branches in Buchanan and Nellysford, Virginia, to support deposit growth and market expansion.

• Board declared a quarterly dividend of $0.10 per share, payable September 20, 2024.

Financial highlights

• Interest income rose to $10.94 million for Q2 2024 (up 14% year-over-year) and $21.44 million for the first half (up 15% year-over-year).

• Interest expense increased sharply to $3.84 million for Q2 2024 and $7.40 million for the first half, reflecting higher deposit rates.

• Net interest income after credit loss recovery was $7.09 million in Q2 2024 (down from $7.60 million) and $14.04 million in H1 2024 (down from $15.10 million).

• Noninterest income increased to $4.19 million for Q2 2024 and $7.50 million for the first half, driven by gains on loan sales, SBIC investment, and fee income.

• Noninterest expense rose to $8.74 million for Q2 2024 and $16.83 million for the first half, mainly due to higher personnel costs.

Outlook and guidance

• Management expects continued pressure on net interest margin if deposit rates rise further, but forecasts modest margin expansion as rates stabilize.

• Positive economic indicators and market share gains are expected to support financial strength in the second half of 2024.

• Mortgage origination volume is expected to remain under pressure due to elevated interest rates.

• Wealth management is expected to continue contributing meaningfully to consolidated net income.