Bank of the James Financial Group (BOTJ) Q3 2024 earnings summary

Executive summary

• Net income for Q3 2024 was $1.99 million ($0.44/share), down from $2.08 million ($0.46/share) in Q3 2023; nine-month net income was $6.33 million ($1.39/share), down from $6.60 million ($1.44/share) year-over-year.

• Total assets surpassed $1.01 billion as of September 30, 2024, increasing by over $30 million since the start of 2024, driven by loan growth, cash, and bank-owned life insurance.

• Book value per share rose to $15.15 at September 30, 2024, up from $13.21 at December 31, 2023.

• Quarterly dividend of $0.10 per share declared, payable December 6, 2024.

Financial highlights

• Interest income rose to $11.56 million for Q3 2024 (up 14% year-over-year) and $33.01 million for the nine months (up 15%), mainly due to higher rates on earning assets.

• Interest expense increased to $4.05 million for Q3 (from $2.78 million) and $11.46 million for the nine months (from $6.47 million), reflecting higher deposit rates and balances.

• Net interest income was $7.51 million for Q3 and $21.55 million for the nine months, with net interest margin declining to 3.16% and 3.07%, respectively.

• Noninterest income increased to $3.82 million for Q3 (up 19% year-over-year) and $11.32 million for the nine months (up 17%), driven by gains on loan sales and higher wealth management fees.

• Noninterest expense rose to $8.78 million for Q3 (up 8% year-over-year) and $25.60 million for the nine months (up 6%), mainly due to higher personnel costs.

Outlook and guidance

• Management anticipates continued pressure on net interest margin due to deposit mix and rate environment, but expects gradual improvement and stabilization if rates remain steady.

• 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.

• Stabilizing interest rates and economic conditions expected to support continued loan and deposit growth.