Bank of the James Financial (BOTJ) - 2024 Q4 - Annual Report

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]