Bank of the James Financial Group Reports 38.3% Increase in Q3 Net Income

Bank of the James Financial Group, Inc. reported a net income of $2.75 million for the third quarter of 2025, a 38.3% increase from $1.99 million in the same period last year. For the nine months ending September 30, 2025, net income was $6.30 million, slightly down from $6.33 million in 2024. The earnings per share for the quarter rose to $0.61 from $0.44, while the nine-month figure remained stable at $1.39. The increase in quarterly net income was primarily driven by higher net interest income and growth in noninterest income, despite a rise in noninterest expenses.

Total assets for the company increased by 4.18% to $1.02 billion as of September 30, 2025, compared to $979.24 million at the end of 2024. This growth was attributed to increases in federal funds sold, securities available-for-sale, and loans, which rose to $659.59 million from $643.60 million. Total deposits also saw a 4.24% increase, reaching $919.80 million, driven by inflows into money market and time deposit products. The company’s loan portfolio growth was primarily in commercial and commercial real estate segments, reflecting ongoing regional business activity.

In terms of operational developments, the company has expanded its geographic footprint, recently opening a full-service branch in Nellysford, Virginia. The Bank continues to evaluate potential new branch locations to enhance its market presence. As of September 30, 2025, the company reported total loans held for investment of $653.29 million, with commercial real estate loans making up a significant portion of the portfolio. The company also reported a slight decrease in the allowance for credit losses to $6.30 million, reflecting stable credit quality and limited charge-offs.

The company’s noninterest income increased to $4.17 million for the third quarter, up from $3.82 million in the prior year, driven by higher wealth management fees and gains on loan sales. Noninterest expenses rose to $9.16 million, primarily due to increased salaries and benefits, as well as technology investments. The net interest margin improved to 3.44% for the quarter, up from 3.16% in the previous year, benefiting from rising loan yields and lower funding costs.

Looking ahead, Bank of the James Financial Group anticipates continued growth in its loan portfolio and noninterest income, while managing expenses efficiently. The company remains focused on enhancing profitability through strategic initiatives and maintaining a strong capital position, with a Tier 1 risk-based capital ratio of 11.41% as of September 30, 2025. Management is optimistic about the potential for further expansion and improved financial performance in the coming quarters.