Bank of the James Financial Group Reports 25.9% Increase in Q2 Net Income

Bank of the James Financial Group, Inc. reported its financial results for the second quarter of 2025, revealing a net income of $2.7 million, a 25.9% increase from $2.1 million in the same period last year. For the first half of 2025, net income totaled $3.5 million, down 18.2% from $4.3 million in the prior year. The earnings per share for the quarter were $0.60, compared to $0.47 in the previous year, while the six-month earnings per share were $0.78, down from $0.95. The increase in quarterly net income was attributed to higher net interest income and credit loss recoveries, despite rising noninterest expenses.

Total assets for the company increased by 2.56% to $1.004 billion as of June 30, 2025, up from $979.2 million at the end of 2024. This growth was primarily driven by increases in federal funds sold, securities available-for-sale, and net loans, which rose to $649.1 million from $636.6 million. Total deposits also saw a 3.19% increase, reaching $910.5 million, largely due to the reversal of prior cash sweep placements. The loan portfolio experienced growth in commercial and consumer loans, although residential loans saw a slight decline.

Operationally, the company has expanded its geographic footprint, now serving areas beyond its traditional markets in Central Virginia, including Charlottesville and Roanoke. The investment advisory segment, through its subsidiary Pettyjohn, Wood & White, reported assets under management of approximately $930 million, an increase from $854 million at the end of 2024. The company continues to focus on enhancing its profitability by increasing market share and providing additional services to customers.

The filing also highlighted a recovery in credit losses, with a recovery of $528,000 for the quarter, compared to a recovery of $123,000 in the same quarter last year. The allowance for credit losses decreased to $6.3 million, or 0.96% of total loans, down from $7.0 million at the end of 2024. Noninterest expenses rose to $9.5 million for the quarter, driven by higher salaries, professional fees, and technology investments. The company anticipates that its amended core-service provider contract will yield significant cost savings moving forward.

Looking ahead, Bank of the James Financial Group remains optimistic about its growth trajectory, with plans to open additional branches in the future, subject to regulatory approval. The company is focused on maintaining adequate liquidity and capital levels, with a leverage ratio of 8.85% and a total risk-based capital ratio of 12.19%, both exceeding the requirements for well-capitalized institutions. Management continues to monitor economic conditions and market trends to navigate potential challenges while pursuing strategic growth initiatives.