Bank of the James Financial Group, Inc. reported its financial results for the third quarter and the first nine months of 2024, highlighting a mixed performance in revenue and profitability compared to the previous fiscal period. As of September 30, 2024, the company’s total assets increased to $1,008,063,000, a 3.99% rise from $969,371,000 at the end of 2023. Total deposits also saw a growth of 3.32%, reaching $907,610,000, up from $878,459,000.

The bank's net loans, net of allowance for credit losses, rose to $627,112,000, marking a 4.19% increase from $601,921,000 at the end of 2023. This growth was driven by increases in commercial mortgages, particularly non-owner occupied loans, which reached $189,977,000, representing 29.96% of total loans. However, total nonperforming assets increased significantly to $1,295,000 from $391,000, indicating a rise in credit risk.

Net income for the three months ended September 30, 2024, was $1,990,000, a decrease from $2,078,000 in the same period of 2023. For the nine months, net income totaled $6,326,000, down from $6,596,000 year-over-year. Earnings per share for the third quarter were $0.44, compared to $0.46 in 2023. The decline in profitability was attributed to increased interest expenses, which rose by $1,275,000 for the quarter and $4,984,000 for the nine months.

Interest income for the third quarter increased to $11,563,000 from $10,143,000 in 2023, while net interest income slightly improved to $7,509,000 from $7,364,000. However, the net interest margin decreased to 3.16% from 3.21% in the prior year. Noninterest income also grew, reaching $3,823,000 for the quarter, up from $3,201,000, driven by higher wealth management fees and gains on sales of loans.

On the expense side, total noninterest expenses increased by 7.81% to $8,776,000 for the third quarter, with personnel expenses rising to $4,920,000 from $4,683,000. The allowance for credit losses decreased to $7,078,000, down from $7,412,000 at the end of 2023, reflecting improved credit quality indicators.

Strategically, the bank is expanding its footprint, having acquired properties for future branch locations, including a former bank branch in Lynchburg, Virginia, with plans to open in 2025. The bank is also evaluating additional branch locations for expansion, subject to regulatory approval.