Lynchburg-based financial services firm posted net income of $2.70 million, or $0.60 per share, for the three months ended June 30
LYNCHBURG: Bank of the James Financial Group Inc. (NASDAQ: BOTJ), the parent company of Bank of the James and investment advisory firm Pettyjohn, Wood & White Inc., reported a sharp rise in second-quarter earnings, driven by improved net interest margin, strong loan yields, and disciplined expense management.
The Lynchburg-based financial services firm posted net income of $2.70 million, or $0.60 per share, for the three months ended June 30, 2025, up from $2.15 million, or $0.47 per share, a year earlier. For the first half of 2025, net income totaled $3.55 million, or $0.79 per share, compared with $4.34 million, or $0.95 per share, in the same period last year.
CEO Robert R. Chapman III said the results reflect “continued traction in commercial lending, mortgage originations and core deposits,” adding that the company’s financial performance “establishes a solid base” for the remainder of the year.
Margin Expansion and Asset Quality
Net interest margin rose to 3.45% in Q2, the highest in several quarters, as the Bank maintained loan yields in line with prevailing interest rates while controlling interest expense and borrowings. Net interest income after credit loss recovery climbed 22% year-over-year to $8.78 million in Q2 and 11% to $16.36 million for the first half.
The quarter also included a $528,000 recovery of allowance for credit losses, contributing to earnings growth.
Interest income increased 6% to $11.64 million in Q2 and 7% to $22.87 million in H1, driven by higher yields on loans, commercial real estate growth, and residential mortgage originations. Interest expense declined 12% in Q2 and 7% in H1, reflecting the Bank’s focus on lower-cost core deposits.
Noninterest Income and Wealth Management
Noninterest income remained stable at $4.08 million in Q2 and $7.36 million in H1, supported by commercial treasury services, mortgage origination fees, and wealth management income from PWW.
Total assets reached $1.04 billion as of June 30, up from $979.24 million at year-end 2024. Deposits rose to $910.53 million from $882.40 million, underscoring the Bank’s emphasis on core deposit growth.
Debt Retirement and Shareholder Value
In a strategic move, the Company retired approximately $10 million in capital notes during Q2, a milestone expected to reduce annual interest expense by $327,000. The debt was retired through a private transaction with local investors, avoiding refinancing at higher rates.
“This offering provided capital at a critical time and was made possible by our strong cash position,” Chapman said. “We are grateful to the investors who supported us.”
Shareholders saw equity grow to $71.67 million from $64.87 million at year-end, with book value per share rising to $15.77 from $14.28.
The board of directors declared a quarterly dividend of $0.10 per share, payable on Sept. 26 to shareholders of record as of Sept. 12.