Financial Performance - Net income for Q1 2025 was $842,000, down from $2.19 million in Q1 2024, resulting in earnings per share of $0.19 compared to $0.48 a year earlier[2] - Net income decreased by 61.50% to $842 thousand for the three months ended March 31, 2025, down from $2,187 thousand in the prior year[36] - Basic net income per share decreased to $0.19 for the three months ended March 31, 2025, down from $0.48 in the same period of 2024[36] Interest Income and Margin - Total interest income increased by 6.90% to $11.23 million in Q1 2025, up from $10.51 million in Q1 2024, driven by higher yields on loans and growth in commercial real estate[11] - Net interest margin improved to 3.25% in Q1 2025, up from 3.02% in Q1 2024, while interest spread rose to 2.95% from 2.73% year-over-year[11] - Net interest income rose to $7,719 thousand for the three months ended March 31, 2025, reflecting an 11.06% increase compared to $6,950 thousand in the same period of 2024[34] Asset and Loan Growth - Total assets grew by 3% to $1.01 billion at March 31, 2025, compared to $979.24 million at December 31, 2024[19] - Total assets increased to $1,011,726 thousand as of March 31, 2025, up 3.32% from $979,244 thousand at December 31, 2024[32] - Loans, net of allowance for credit losses, increased to $642.39 million at March 31, 2025, from $636.55 million at December 31, 2024[19] - Loans held for sale increased significantly by 31.06% to $4,739 thousand compared to $3,616 thousand in the previous quarter[36] Deposits and Equity - Total deposits reached $911.68 million at March 31, 2025, up from $882.40 million at December 31, 2024, reflecting growth in core deposits[24] - Total deposits grew to $911,683 thousand, a 3.32% increase from $882,404 thousand at the end of 2024[36] - Stockholders' equity increased to $68.35 million at March 31, 2025, from $64.87 million at December 31, 2024, with book value per share rising to $15.04 from $14.28[25] Asset Quality - Nonperforming loans to total loans ratio was 0.28% at March 31, 2025, indicating strong asset quality[23] - Nonperforming loans rose to $1,799 thousand, a 9.70% increase from $1,640 thousand at December 31, 2024[38] Expenses and Efficiency - Noninterest expenses increased by 21.49% to $9,826 thousand for the three months ended March 31, 2025, compared to $8,088 thousand in the same period of 2024[35] - The efficiency ratio worsened to 89.31% for the three months ended March 31, 2025, compared to 78.85% in the same period of 2024[37] Future Projections and Savings - The company anticipates $5 million in savings over the 65-month term of a new contract with its core service provider, despite a one-time expense of approximately $1 million in Q1 2025[11] - The company plans to pay off approximately $10 million of capital notes in June 2025, reducing annual interest expense by approximately $327,000[5] Credit Loss Provision - The provision for credit losses was $137 thousand, a significant recovery from a negative provision of $553 thousand in the prior year[36]

Core Insights - The company reported a net income of $842,000 for Q1 2025, a significant decrease from $2.19 million in Q1 2024, resulting in earnings per share of $0.19 compared to $0.48 a year earlier [2][14] - The decrease in earnings was primarily due to a one-time expense of approximately $1 million related to a consultant for negotiating a contract with the core service provider, which is expected to yield long-term cost savings [4][10] - The company maintained a strong cash position, allowing it to pay off approximately $10 million of capital notes without raising new capital, which will reduce annual interest expenses by about $327,000 [5] Financial Performance - Total interest income increased by 6.90% to $11.23 million in Q1 2025 from $10.51 million in Q1 2024, driven by higher yields on loans and growth in commercial real estate loans [12][14] - Net interest income after provision for credit losses rose to $7.58 million, compared to $7.50 million a year earlier, with a net interest margin improvement to 3.25% from 3.02% [11][15] - Noninterest income was stable at $3.28 million, with contributions from commercial treasury services and wealth management activities [16][14] Asset Quality and Growth - Total assets grew by 3% to $1.01 billion at March 31, 2025, from $979.24 million at December 31, 2024, with loans net of allowance for credit losses increasing to $642.39 million [18][24] - The ratio of nonperforming loans to total loans was 0.28%, indicating strong asset quality, with total nonperforming loans at $1.80 million [22][24] - The company added two experienced commercial relationship managers to enhance its commercial lending capabilities and expand market share [8][9] Shareholder Value - Stockholders' equity increased to $68.35 million at March 31, 2025, up from $64.87 million at December 31, 2024, with a book value per share rising to $15.04 from $14.28 [24][14] - The board of directors approved a quarterly dividend of $0.10 per common share, reflecting the company's commitment to returning value to shareholders [14]

Financial Performance - Total interest income increased to $44,643,000 in 2024 from $39,362,000 in 2023, representing a growth of 8.2%[380] - Net income decreased to $7,944,000 in 2024 compared to $8,704,000 in 2023, a decline of 8.7%[381] - Noninterest income rose to $15,137,000 in 2024, up from $12,867,000 in 2023, marking an increase of 17.7%[381] - Total noninterest expenses increased to $35,105,000 in 2024 from $32,507,000 in 2023, reflecting a rise of 8.1%[381] - Earnings per common share decreased to $1.75 in 2024 from $1.91 in 2023, a decline of 8.4%[381] - The net revenue for the consolidated entity was $44.373 million in 2024, up from $42.607 million in 2023, reflecting an increase of approximately 4.1%[503] Assets and Liabilities - The Bank's total assets increased to $979.2 million as of December 31, 2024, compared to $969.4 million as of December 31, 2023, reflecting a growth of approximately 1.8%[379] - The Bank's total liabilities increased to $914.4 million in 2024 from $909.3 million in 2023, reflecting a growth of approximately 0.6%[379] - The Bank's gross loan portfolio is approximately $643.6 million with an allowance for credit losses of $7.0 million as of December 31, 2024[369] - The balance of cash and cash equivalents at the end of the period was $73,309,000 in 2024, slightly down from $74,838,000 in 2023[388] Deposits and Loans - The Bank's total deposits rose to $882.4 million in 2024, up from $878.5 million in 2023, indicating an increase of about 0.5%[379] - Total loans as of December 31, 2024, amounted to $643,596,000, an increase from $609,333,000 as of December 31, 2023[463] - Total loans held for investment, net of allowances, increased to $636.6 million at December 31, 2024, up from $601.9 million in 2023, representing a growth of approximately 5.8%[501] Credit Quality and Allowance for Credit Losses - The allowance for credit losses decreased to $7,044,000 as of December 31, 2024, from $7,412,000 as of December 31, 2023[465] - The company actively monitors credit risk through comprehensive underwriting standards and regular portfolio reviews[461] - The total provision for credit losses included charge-offs of $236 million and recoveries of $209 million, highlighting the bank's management of credit risk[467] - The allowance for credit losses for unfunded loan commitments was $543,000 and $665,000 at December 31, 2024 and 2023, respectively[487] Investments and Securities - The Bank's securities available-for-sale decreased to $187.9 million in 2024 from $216.5 million in 2023, a decline of about 13.2%[379] - The company’s total amortized cost of securities as of December 31, 2024, was $216,921,000, with a fair value of $187,916,000, reflecting gross unrealized losses of $29,014,000[450] - The total available-for-sale securities decreased from $216,510,000 in 2023 to $187,916,000 in 2024, reflecting a reduction of about 13.2%[555] Branch Growth and Strategic Plans - The Bank plans to evaluate additional locations for future branch growth and may open a new branch within the next 18 months if a suitable location is found[208] - The Bank is utilizing the internet to enhance growth plans, offering online account access and management functions[209] Capital Ratios and Compliance - As of December 31, 2024, the Bank's total capital to risk-weighted assets ratio was 12.84%, exceeding the minimum requirement of 10.50%[534] - The Bank's Tier 1 capital to risk-weighted assets ratio was 11.92%, above the required minimum of 8.50%[534] - The Bank is categorized as well capitalized under the regulatory framework for prompt corrective action as of December 31, 2024[533] Miscellaneous - The company reported a total of $1,664 million in special mention loans, indicating a focus on monitoring potential credit risks[476] - The company recorded no liabilities for unrecognized tax benefits as of December 31, 2024, and 2023[430] - The Bank had no Other Real Estate Owned (OREO) as of December 31, 2024 and 2023, maintaining a consistent position[489]

Financial Performance - Net income for the fourth quarter of 2024 was $1.62 million, down 23.2% from $2.11 million in the same quarter of 2023, while full-year net income decreased to $7.94 million from $8.70 million [2][12]. - Net income decreased by 8.73% to $7,944,000 in 2024 compared to $8,704,000 in 2023 [40]. - Return on average assets decreased to 0.63% in 2024 from 0.87% in 2023, a decline of 0.24 percentage points [42]. - Return on average equity fell to 9.39% in 2024 compared to 16.69% in 2023, a decrease of 7.30 percentage points [42]. Income and Revenue - Total interest income for 2024 increased by 13% to $44.64 million compared to $39.36 million in 2023, driven by higher commercial loan interest rates and new loans [12][14]. - Noninterest income rose 18% year-over-year to $15.14 million in 2024, supported by gains on loan sales and wealth management fees [5][18]. - Total interest income increased by 13.42% to $44,643,000 in 2024 from $39,362,000 in 2023 [39]. - Noninterest income grew by 17.64% to $15,137,000 in 2024 from $12,867,000 in 2023 [41]. Loans and Assets - Total loans, net of allowance for credit losses, increased by 6% to $636.55 million at December 31, 2024, with commercial real estate loans growing by 9% [6][22]. - Loans, net increased by 5.75% to $636,552,000 as of December 31, 2024, up from $601,921,000 in 2023 [41]. - Total assets increased by 1.02% to $979,244,000 as of December 31, 2024, from $969,371,000 in 2023 [41]. - Loans held for sale increased significantly by 187.44% to $3,616,000 in 2024 from $1,258,000 in 2023 [41]. Deposits and Equity - Total deposits increased to $882.40 million at December 31, 2024, up from $878.46 million a year earlier, reflecting a focus on core deposits [9][27]. - Total deposits rose by 0.45% to $882,404,000 in 2024 from $878,459,000 in 2023 [41]. - Stockholders' equity rose by 8% to $64.87 million at December 31, 2024, with book value per share increasing to $14.28 from $13.21 a year earlier [10][28]. - Stockholders' equity increased by 8.04% to $64,865,000 in 2024 compared to $60,039,000 in 2023 [41]. - Book value per share improved to $14.28 in 2024 from $13.21 in 2023, reflecting a $1.07 increase [41]. Expenses and Efficiency - Noninterest expense for the full year of 2024 was $35.11 million, up from $32.51 million in 2023, impacted by a one-time payment related to a debit card processing contract [20][12]. - Interest expense surged by 60.12% to $15,407,000 in 2024 from $9,622,000 in 2023 [41]. - The efficiency ratio increased to 82.62% in 2024, up from 79.64% in 2023, reflecting a rise of 2.98 percentage points [42]. Credit Quality - The ratio of nonperforming loans to total loans was 0.25% at December 31, 2024, indicating strong asset quality management [26]. - Total nonperforming loans surged by 319.44% to $1,640 million in 2024 from $391 million in 2023 [42]. - Nonperforming loans to total loans ratio increased to 0.25% in 2024 from 0.06% in 2023, an increase of 0.19 percentage points [42]. - The allowance for credit losses for loans to total loans decreased to 1.09% in 2024 from 1.22% in 2023, a change of -0.12 percentage points [42]. - The ending balance of allowance for credit losses dropped by 4.96% to $7,044 million in 2024 from $7,412 million in 2023 [42]. - Provision for credit losses showed a recovery of $39 million in 2024 compared to a provision of $123 million in 2023, a change of -131.71% [42]. - Charge-offs were recorded at $0 million in 2024, a significant decrease from $40 million in 2023, marking a -100.00% change [42]. Future Outlook - The company anticipates recognizing up to $438,000 in incentive payments from a new card processing contract, with expected long-term benefits of $2.1 million [12].

Core Insights - The company reported a decline in net income for both the fourth quarter and the full year of 2024 compared to the previous year, with net income of $1.62 million ($0.36 per share) for Q4 2024, down from $2.11 million ($0.45 per share) in Q4 2023, and full-year net income of $7.94 million ($1.75 per share), down from $8.70 million ($1.91 per share) in 2023 [2][10][37] Financial Performance - Total interest income increased to $44.64 million for the full year of 2024, up 13% from $39.36 million in 2023, primarily due to higher rates on commercial loans and new loans reflecting the prevailing rate environment [13][17] - Noninterest income rose 18% to $15.14 million in 2024, driven by gains on loan sales, commercial treasury services, and wealth management fees [5][18][19] - Total loans, net of allowance for credit losses, increased by 6% to $636.55 million at the end of 2024, with commercial real estate loans growing by 9% [6][17][21] Asset Quality and Management - The ratio of nonperforming loans to total loans was 0.25% at the end of 2024, indicating strong asset quality, although this was an increase from 0.06% at the end of 2023 [25][40] - The allowance for credit losses on loans to total loans was 1.09% at the end of 2024, down from 1.22% a year earlier, reflecting effective credit management [25][40] Shareholder Value - Stockholders' equity increased by 8% to $64.87 million at the end of 2024, with retained earnings rising to $42.80 million from $36.68 million a year earlier [9][27][28] - The company declared a quarterly dividend of $0.10 per share, reflecting its commitment to returning value to shareholders [10][28] Operational Highlights - The company opened new strategic locations in Buchanan and Nellysford, Virginia, enhancing its deposit-gathering capabilities [8] - Noninterest expense for the full year of 2024 was $35.11 million, up from $32.51 million in 2023, influenced by a one-time payment related to a contract with a debit card processor [20][37]

Financial Performance - The company reported a significant increase in net interest income, driven by a rise in interest rates, contributing to a year-over-year growth of 15%[132]. - Net income for the three and nine months ended September 30, 2024, was $1,990,000 and $6,326,000, respectively, compared to $2,078,000 and $6,596,000 for the same periods in 2023[182]. - Interest income increased to $11,563,000 and $33,007,000 for the three and nine months ended September 30, 2024, driven by higher interest rates on loans[185]. - Interest expense rose significantly to $4,054,000 and $11,457,000 for the three and nine months ended September 30, 2024, due to increased deposit balances and interest rates[186]. - Net interest income for the three and nine months ended September 30, 2024, was $7,509,000 and $21,550,000, with a net interest margin of 3.16% and 3.07%, respectively[187]. - Noninterest income increased to $3,823,000 and $11,321,000 for the three and nine months ended September 30, 2024, primarily due to growth in wealth management fees and gains on sales of loans[190]. - Noninterest expense increased to $8,776,000 and $25,602,000 for the three and nine months ended September 30, 2024, representing increases of 7.81% and 6.27% respectively compared to the same periods in 2023[198]. - The effective tax rate for the three and nine months ended September 30, 2024, was 19.24% and 19.44%, lower than the rates of 19.74% and 19.82% for the same periods in 2023[202]. Asset and Liability Management - Total assets increased by 3.99% to $1,008,063,000 as of September 30, 2024, compared to $969,371,000 at December 31, 2023[148]. - Total deposits rose by 3.32% to $907,610,000 from $878,459,000 during the same period, driven by increases in time deposits and savings deposits[149]. - Total loans, excluding loans held for sale, increased by 4.07% to $634,190,000 from $609,333,000, primarily due to growth in commercial real estate and residential loans[150]. - Total uninsured deposits were approximately $267,498,000, representing about 29.47% of total deposits as of September 30, 2024[173]. - Total liabilities rose to $925.568 billion in 2024, compared to $894.115 billion in 2023, marking an increase of about 3.5%[207]. - Stockholders' equity increased to $60.564 billion in 2024 from $51.274 billion in 2023, showing a growth of approximately 18.1%[207]. - The allowance for credit losses decreased to $7.091 billion in 2024 from $7.611 billion in 2023, a reduction of approximately 6.8%[206]. Branch Expansion and Strategy - The company plans to open a new branch in Lynchburg, Virginia, in 2025, following the acquisition of a property previously used as a bank branch[137]. - The company has identified additional potential branch locations in Virginia, including Nellysford, with plans to relocate the Temporary Nellysford Branch by fall 2025[137]. - The company continuously evaluates potential new branch locations to enhance its service offerings and market presence[135]. - The Bank anticipates that each new branch will become profitable within 12 to 18 months of operation, with potential expansion in the next 12 months[139]. - The company has a community-oriented banking strategy, focusing on providing services to individuals and small businesses in Central Virginia and expanding to new areas[128]. Risk Management - The allowance for credit losses (ACLL) is estimated using a discounted cash flow model, reflecting management's expectations of probable losses in the loan portfolio[125]. - The company is subject to various risks, including economic and regulatory changes, which could materially affect future financial results[121]. - The Bank maintains a strong credit underwriting process and actively monitors its commercial real estate loan portfolio to manage risk effectively[155]. Compliance and Reporting - The company emphasized its commitment to compliance with the Sarbanes-Oxley Act, as evidenced by certifications from key executives[31.1][31.2]. - The financial report is formatted in eXtensible Business Reporting Language (XBRL), enhancing data accessibility and analysis[101]. - The company is focused on maintaining transparency and accuracy in its financial reporting practices[31.1][31.2]. - The report included consolidated statements of cash flows for the nine months ended September 30, 2024, indicating cash management and liquidity status[101]. - The report was signed by the President and Principal Executive Officer, Robert R. Chapman III, and the Principal Financial Officer, J. Todd Scruggs, ensuring accountability[214].

Financial Performance - Net income for Q3 2024 was $1.99 million, down from $2.08 million in Q3 2023, while net income for the first nine months of 2024 was $6.33 million compared to $6.60 million in the same period last year[1]. - Noninterest income for Q3 2024 increased by 19% to $3.82 million, and for the first nine months, it rose by 17% to $11.32 million compared to the same period last year[10]. - Net interest income for the three months ended September 30, 2024, was $7,509 thousand, compared to $7,364 thousand for the same period in 2023, reflecting an increase of 2.0%[20]. - Net income for the three months ended September 30, 2024, was $1,990 thousand, down from $2,078 thousand in the same period of 2023, a decrease of 4.2%[21]. - Basic net income per share decreased to $0.44 for the three months ending September 30, 2024, from $0.46 in the same period last year[23]. Asset and Loan Growth - Total assets grew to $1.01 billion at September 30, 2024, up from $969.37 million at December 31, 2023, primarily due to loan portfolio growth[11]. - Loans, net of allowance for credit losses, increased to $627.11 million at September 30, 2024, compared to $601.92 million at December 31, 2023[7]. - Total assets increased to $1,008,063 thousand as of September 30, 2024, up from $969,371 thousand at December 31, 2023, representing a growth of approximately 4.5%[17]. - Loans, net of allowance for credit losses, increased to $627,112 thousand as of September 30, 2024, compared to $601,921 thousand at December 31, 2023, a growth of 4.2%[17]. Deposit Growth - Total deposits rose to $907.61 million at September 30, 2024, from $878.46 million at December 31, 2023[11]. - Total deposits increased to $907,610 thousand as of September 30, 2024, from $878,459 thousand at December 31, 2023, an increase of 3.0%[17]. - Total deposits rose by 3.32% to $907,610,000 as of September 30, 2024, compared to $878,459,000 at the end of 2023[24]. Equity and Book Value - Book value per share increased to $15.15 at September 30, 2024, up from $13.21 at December 31, 2023[13]. - Stockholders' equity increased to $68,834 thousand as of September 30, 2024, from $60,039 thousand at December 31, 2023, representing a growth of 14.6%[19]. - Stockholders' equity increased by 14.65% to $68,834,000 from $60,039,000 at the end of 2023[24]. Interest Income and Margin - Total interest income for Q3 2024 increased by 14% to $11.56 million, and for the first nine months, it rose by 15% to $33.01 million compared to the previous year[5]. - The net interest margin for Q3 2024 was 3.16%, slightly lower than 3.21% in Q3 2023 but improved from 3.02% in Q2 2024[8]. - Interest income for the three months ending September 30, 2024, increased by 14.00% to $11,563,000 compared to $10,143,000 for the same period in 2023[23]. Nonperforming Loans and Credit Losses - The ratio of nonperforming loans to total loans was 0.20% at September 30, 2024, indicating strong asset quality[11]. - Total nonperforming loans surged by 231.20% to $1,295,000 compared to $391,000 at the end of 2023[30]. - The allowance for credit losses for loans to total loans was 1.12% as of September 30, 2024, down from 1.22% at the end of 2023[31]. - The provision for credit losses for the three months ended September 30, 2024, was $92 thousand, compared to a recovery of $164 thousand in the same period of 2023[20]. Expenses and Efficiency - The company reported a total noninterest expense of $8,776 thousand for the three months ended September 30, 2024, compared to $8,140 thousand in the prior year, an increase of 7.8%[21]. - The efficiency ratio for the three months ending September 30, 2024, was 77.44%, slightly up from 77.05% in the same period last year[27]. Dividends - A quarterly dividend of $0.10 per common share was approved, to be paid on December 6, 2024[7].

Core Viewpoint - Bank of the James Financial Group, Inc. reported stable earnings and growth in shareholder value despite challenges from high interest rates, with a focus on strong asset quality and diversified income streams [1][2][3]. Financial Performance - Net income for Q3 2024 was $1.99 million ($0.44 per share), a decrease from $2.08 million ($0.46 per share) in Q3 2023. For the first nine months of 2024, net income was $6.33 million ($1.39 per share), down from $6.60 million ($1.44 per share) in the same period last year [1][6][24]. - Total interest income for Q3 2024 was $11.56 million, a 14% increase from $10.14 million in Q3 2023. For the first nine months, total interest income rose 15% to $33.01 million from $28.82 million [6][8][25]. - Noninterest income increased by 19% in Q3 2024 to $3.82 million compared to $3.20 million in Q3 2023, and for the first nine months, it rose 17% to $11.32 million from $9.70 million [10][11][25]. Asset and Loan Growth - Total assets grew to $1.01 billion as of September 30, 2024, up from $969.37 million at the end of 2023, primarily due to loan growth [12][16]. - Loans, net of allowance for credit losses, increased to $627.11 million from $601.92 million at the end of 2023, reflecting stability and growth in commercial real estate and residential mortgage loans [12][15][26]. - Total deposits rose to $907.61 million as of September 30, 2024, compared to $878.46 million at the end of 2023, with significant growth in time deposits [16][26]. Shareholder Value - Book value per share increased to $15.15 from $13.21 at the end of 2023, reflecting strong financial performance [17][26]. - Total stockholders' equity rose to $68.83 million from $60.04 million at the end of 2023, with retained earnings increasing to $41.64 million from $36.68 million [17][26]. Strategic Initiatives - The company opened new strategic locations in Buchanan and Nellysford, Virginia, which have shown strong initial performance [4]. - The bank's focus on digital banking capabilities and commercial cash management services has contributed to customer retention and growth in deposits [5][10].

Financial Performance - The company reported a significant increase in net interest income, driven by a rise in interest rates, resulting in a year-over-year growth of 15%[119] - Net income for the three and six months ended June 30, 2024, was $2,148,000 and $4,335,000, down from $2,534,000 and $4,518,000 in the same periods of 2023, representing a decrease of 15.2% and 4.0% respectively[152] - Basic and diluted earnings per share for the three and six months ended June 30, 2024, were $0.47 and $0.95, compared to $0.56 and $0.99 for the same periods in 2023, reflecting a decline of 16.1% and 4.0% respectively[152] - Interest income increased to $10,935,000 and $21,444,000 for the three and six months ended June 30, 2024, from $9,583,000 and $18,681,000 in 2023, marking an increase of 14.1% and 9.0% respectively[152] - Interest expense rose significantly to $3,844,000 and $7,403,000 for the three and six months ended June 30, 2024, compared to $2,238,000 and $3,694,000 in 2023, an increase of 72.0% and 100.0% respectively[154] - Net interest income for the three and six months ended June 30, 2024, was $7,091,000 and $14,041,000, down from $7,345,000 and $14,987,000 in 2023, representing decreases of 3.5% and 6.3% respectively[155] - Noninterest income increased to $4,191,000 and $7,498,000 for the three and six months ended June 30, 2024, from $3,444,000 and $6,488,000 in 2023, reflecting increases of 21.7% and 15.6% respectively[158] - Noninterest expense for the three and six months ended June 30, 2024, increased to $8,739,000 and $16,827,000, up from $7,876,000 and $15,951,000 in 2023, increases of 10.96% and 5.49% respectively[166] Asset and Liability Management - Total assets increased by 0.89% to $978,011,000 as of June 30, 2024, compared to $969,371,000 at December 31, 2023[131] - Total deposits rose by 0.73% to $884,902,000 on June 30, 2024, from $878,459,000 at the end of 2023[131] - Total loans, excluding loans held for sale, increased by 2.35% to $616,088,000 on June 30, 2024, from $601,921,000 at December 31, 2023[132] - Total earning assets increased to $941,099,000 in 2024, generating interest income of $10,940,000 with an average rate of 4.68%, compared to $892,900,000 and $9,588,000 at 4.31% in 2023[173] - Total interest-bearing deposits increased to $755,564,000 in 2024, with interest expense of $3,649,000, compared to $710,412,000 and $2,036,000 in 2023[174] - Total liabilities and stockholders' equity increased to $982,441,000 from $941,593,000[178] Credit Quality and Losses - The company’s allowance for credit losses is based on a discounted cash flow model, reflecting management's estimates of probable losses in the loan portfolio[114] - The allowance for credit losses was 1.12% of total loans outstanding as of June 30, 2024, down from 1.22% and 1.23% at December 31, 2023, and June 30, 2023 respectively[168] - Charged-off loans for the three and six months ended June 30, 2024, were $19,000 and $84,000, compared to $19,000 and $52,000 in 2023[169] - The allowance for loan losses decreased to $6,940,000 in 2024 from $7,738,000 in 2023, indicating improved asset quality[173] Branch Expansion and Market Strategy - The company plans to open additional branches in Virginia, with expectations that each new branch will become profitable within 12 to 18 months of operation[125] - The company is currently evaluating potential branch locations and may acquire properties for expansion in the next 12 months[125] - The company has identified properties for future branch locations, including a permanent branch in Nellysford, Virginia, expected to open in 2025[124] - The estimated cost for improvements to a new branch in Campbell County is projected to be between $900,000 and $1,500,000[124] - The company aims to enhance profitability by increasing market share and providing additional services to customers[119] - The company’s primary market area has expanded beyond Central Virginia to include Roanoke, Charlottesville, Harrisonburg, Blacksburg, Lexington, and Rustburg[117] Regulatory and Compliance - The company continues to monitor and ensure compliance with SEC rules and regulations[180] - Disclosure controls and procedures were evaluated as effective by the principal executive and financial officers[180] - There were no significant changes in internal controls over financial reporting during the quarter ended June 30, 2024[181] - The company is not involved in any pending legal proceedings, other than routine litigation[182] - The company reported no significant market risks applicable to its operations[180] Investment and Securities - As of June 30, 2024, the investment advisory firm PWW, acquired by the company, manages approximately $789 million in assets[118] - Securities available-for-sale decreased to $206,177,000 on June 30, 2024, from $216,510,000 at December 31, 2023[139] - The Bank has liquid assets totaling $280,804,000 as of June 30, 2024, including cash and available-for-sale investments[141] - The Bank's investment in Federal Home Loan Bank of Atlanta stock increased to $672,000 at June 30, 2024, from $643,000 at December 31, 2023[140] Taxation - For the three and six months ended June 30, 2024, the income tax expense was $518,000 and $1,053,000, respectively, compared to $633,000 and $1,120,000 for the same periods in 2023, reflecting an effective tax rate decrease to 19.43% and 19.54% from 19.99% and 19.87%[171] - The effective tax rate was lower than the statutory corporate tax rate due to federal income tax benefits from specific tax treatments[171]

Financial Performance - Net interest income after recovery of credit losses for Q2 2024 was $7.21 million, down from $7.60 million in Q2 2023, representing a decrease of 5.13%[2] - For the first half of 2024, net interest income after recovery of credit losses was $14.72 million, compared to $15.10 million in the same period last year, a decline of 2.52%[2] - Total interest income for Q2 2024 was $10.94 million, compared to $9.58 million in Q2 2023, representing an increase of 14.19%[10] - Total interest income for Q2 2024 was $10.94 million, a 14% increase from $9.58 million in Q2 2023, and $21.44 million for the first half of 2024, up 15% from $18.68 million a year earlier[23] - Net income for the three months ended June 30, 2024, was $2.15 million, or $0.47 per share, compared to $2.53 million, or $0.56 per share for the same period in 2023, reflecting a decrease of 15.23%[29] - Interest income increased by 14.11% year-over-year, reaching $10.94 million for the three months ended June 30, 2024[27] - Noninterest income for the first half of 2024 was $7.50 million, up from $6.49 million in the same period last year, a growth of 15.59%[10] - Noninterest income rose by 21.69% year-over-year, totaling $4.19 million for the three months ended June 30, 2024[27] Asset and Equity Growth - Total assets as of June 30, 2024, were $978.01 million, an increase from $969.37 million as of December 31, 2023, reflecting a growth of 0.66%[8] - Stockholders' equity rose to $61.71 million as of June 30, 2024, up from $60.04 million at the end of 2023, indicating an increase of 2.78%[16] - The company's total assets increased by 0.89% to $978.01 million as of June 30, 2024, from $969.37 million at the end of 2023[27] - Stockholders' equity rose by 2.78% to $61.71 million as of June 30, 2024, compared to $60.04 million at the end of 2023[27] Deposits and Liabilities - Total deposits increased to $884.90 million as of June 30, 2024, compared to $878.46 million at the end of 2023, marking a rise of 0.50%[15] - Total deposits grew by 0.73% to $884.90 million as of June 30, 2024, compared to $878.46 million at the end of 2023[27] - Total liabilities as of June 30, 2024, were $916.31 million, compared to $909.33 million at the end of 2023, reflecting a slight increase of 0.22%[15] Loan Performance - Loans held for sale increased by 9.77% to $4.13 million in Q2 2024 from $3.77 million in Q2 2023[11] - Loans held for sale surged by 284.34%, amounting to $4.84 million as of June 30, 2024, compared to $1.26 million at the end of 2023[27] - The ratio of nonperforming loans to total loans was 0.13% at June 30, 2024, up from 0.06% at December 31, 2023[24] - Total nonperforming loans increased to $797,000 at June 30, 2024, a 103.84% increase from $391,000 at December 31, 2023[22] - The allowance for credit losses to total loans decreased to 1.12% at June 30, 2024, from 1.21% at December 31, 2023[19] Strategic Initiatives - The company opened two new branches in Virginia to enhance outreach and deposit-gathering capabilities[24] - A quarterly dividend of $0.10 per common share was approved, payable on September 20, 2024[24] Market Outlook - The company maintained exceptional liquidity and asset quality while growing loans and deposits[30] - The competitive landscape remains favorable, with opportunities arising from larger banks reducing services in the company's markets[30] - The company anticipates continued strong performance and positive economic indicators supporting financial strength in the second half of 2024[30]