Bank of the James Financial Group Reports $9M Net Income for Fiscal Year 2025

Bank of the James Financial Group, Inc. reported a net income of $9.0 million for the fiscal year ending December 31, 2025, reflecting a 13.6% increase from the previous year's net income of $7.9 million. This translates to earnings per share of $1.99, up from $1.75 in 2024. The company's total assets grew by 6.1% to $1.04 billion, driven primarily by an increase in net loans, which rose to $661.4 million from $636.6 million in the prior year. The net interest income also saw a significant increase, climbing to $32.8 million from $29.2 million, attributed to improved net interest margins and reduced interest expenses following the retirement of capital notes.

In terms of operational developments, the company has expanded its geographic footprint, now operating 23 locations across Virginia, including new branches in Buchanan and Nellysford. The Bank's customer base has also grown, with total deposits increasing by 6.2% to $937.1 million, supported by a rise in both noninterest-bearing and interest-bearing accounts. The investment advisory segment, through its subsidiary Pettyjohn, Wood & White, Inc., reported assets under management of approximately $1.03 billion, up from $854 million in 2024, contributing significantly to the company's noninterest income.

The filing indicates that the company has made strategic decisions to enhance its financial performance, including the implementation of updated credit loss models that have positively impacted the allowance for credit losses, which decreased to $6.5 million from $7.0 million. The company’s efficiency ratio improved to 77.17%, reflecting a disciplined approach to expense management alongside revenue growth. The Bank's capital ratios remain strong, with a Tier 1 capital ratio of 11.73%, well above the regulatory minimums, indicating a solid capital position to support future growth.

Looking ahead, Bank of the James Financial Group, Inc. anticipates continued growth in its core banking and investment advisory services, although it acknowledges potential challenges from economic conditions and interest rate fluctuations. The company remains focused on maintaining its asset quality and managing credit risk, particularly in light of its significant exposure to commercial real estate loans. Management is committed to leveraging its strong capital position and expanding its market presence while navigating the evolving regulatory landscape.