LYNCHBURG - Bank of the James Financial Group, Inc. (NASDAQ:BOTJ), parent company of Bank of the James, has disclosed unaudited financial results for the third quarter ending September 30, 2024. The report showed a net income of $1.99 million or $0.44 per share, a slight decrease from $2.08 million or $0.46 per share for the same period in 2023. The nine-month net income also fell to $6.33 million or $1.39 per share, compared with $6.60 million or $1.44 per share for the previous year.
CEO Robert R. Chapman III highlighted the company's stable earnings and growth in shareholder equity and book value per share. Despite high interest rates affecting lending activity, the bank continued to find solutions for customers, contributing to asset growth surpassing $1 billion in the third quarter. The bank's performance was attributed to effective interest expense management, disciplined credit management, and a diversified income stream.
The bank's total interest income for the third quarter rose by 14% year-over-year, with commercial loan interest rates and commercial real estate growth being significant contributors. Net interest income after provision for credit losses was slightly down compared to the third quarter of 2023 but remained stable for the nine-month period.
Total noninterest income saw a 19% increase in the third quarter, driven by wealth management fee income, treasury services, and gains from mortgage loan sales. The bank's asset quality remained high, with a nonperforming loans ratio of 0.20% as of September 30, 2024.
Bank of the James continued its expansion with new locations in Buchanan and Nellysford, Virginia, contributing to deposit growth. Total deposits increased to $907.61 million, and total assets reached $1.01 billion. The bank's board of directors approved a quarterly dividend of $0.10 per share, payable on December 6, 2024, to shareholders of record as of November 22, 2024.
The bank's executive vice president and CFO, J. Todd Scruggs, expressed optimism for margin improvements in future quarters, following the Federal Reserve's rate cut in mid-September.
This financial update is based on a press release statement from Bank of the James Financial Group, Inc.
"In other recent news, Bank of the James Financial Group Inc. has announced a quarterly cash dividend of $0.10 per share. This declaration, a common practice for the company, reflects its commitment to providing returns to shareholders. The dividend is set to be paid to stockholders of record as of November 22, 2024. In addition to this, the company has reported an increase in its Q1 earnings, with net income rising to $2.19 million, primarily driven by a 15.51% rise in total interest income. Non-interest income also saw an increase, reaching $3.31 million, led by commercial treasury services and wealth management income. As part of their recent developments, Bank of the James Financial Group also plans to expand its presence in the Roanoke, Lexington, and Charlottesville markets with new offices opening in the second quarter of 2024. These announcements highlight the company's financial health and its ability to generate sufficient cash flow to share profits with its investors."
InvestingPro Insights
Bank of the James Financial Group, Inc. (NASDAQ:BOTJ) has demonstrated resilience in a challenging interest rate environment, as evidenced by its recent financial results. To provide additional context to the company's performance, let's examine some key metrics from InvestingPro.
As of the last twelve months ending Q2 2024, BOTJ reported a revenue of $43.41 million USD. While this represents a slight year-over-year decline of 2.79%, it's worth noting that the company's quarterly revenue growth for Q2 2024 was positive at 3.28%, indicating a potential turnaround in top-line performance.
The company's profitability remains strong, with an operating income margin of 25.25% for the same period. This robust margin aligns with the CEO's comments on effective interest expense management and disciplined credit practices.
InvestingPro Tips highlight that BOTJ is trading at a low earnings multiple, with a P/E ratio of 7.13. This valuation metric suggests that the stock may be undervalued relative to its earnings, which could be of interest to value-oriented investors. Additionally, BOTJ has maintained dividend payments for 11 consecutive years and has raised its dividend for 4 consecutive years, reflecting the company's commitment to shareholder returns despite market fluctuations.
The company's dividend yield stands at 2.99%, with a notable dividend growth of 25% in the last twelve months. This aligns with the bank's recent announcement of a $0.10 per share quarterly dividend and underscores its focus on returning value to shareholders.
Investors may also be interested to know that BOTJ has experienced a significant price uptick over the last six months, with a total return of 36.4%. This positive momentum, coupled with the company's stable financial performance, may indicate growing investor confidence in the bank's strategy and execution.
For readers interested in a more comprehensive analysis, InvestingPro offers additional tips and insights on BOTJ, with a total of 6 tips available for this stock.
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