Bank of the James Financial (BOTJ) - 2025 Q1 - Quarterly Results

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$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$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$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$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]