Bank of the James Financial Group, Inc. (the “Company”)
(NASDAQ:BOTJ), the parent company of Bank of the James (the
“Bank”), a full-service commercial and retail bank, and Pettyjohn,
Wood & White, Inc. (“PWW”), an SEC-registered investment
advisor, today announced unaudited results of operations for the
three month and 12 month periods ended December 31, 2022. The Bank
serves Region 2000 (the greater Lynchburg MSA), and the Blacksburg,
Charlottesville, Harrisonburg, Lexington, Roanoke, and Wytheville,
Virginia markets.
Net income for the three months ended December 31, 2022 was a
record $1.95 million or $0.42 per basic and diluted share compared
with $1.86 million or $0.39 per basic and diluted share for the
three months ended December 31, 2021. Net income for the 12 months
ended December 31, 2022 was a Company record $8.96 million or $1.91
per basic and diluted share, up 18% compared with $7.59 million or
$1.60 per basic and diluted share for the 12 months ended December
31, 2021. Per share amounts have been adjusted to reflect a 10%
stock dividend declared in June 2021.
Robert R. Chapman III, CEO, commented: “The Company’s solid
fourth quarter and full-year earnings highlighted the Company’s
operational efficiency, exceptionally strong asset quality and
capital strength, and prompt adjustments in a rapidly shifting
interest rate environment. Throughout the year, the entire Bank of
the James team demonstrated a commitment to superior service and
operation that enabled us to maximize the value of revenue from a
broad range of banking and wealth management capabilities.
“Key performance metrics, including return on average equity and
return on average assets improved in 2022. Significantly higher net
interest margin and interest spread demonstrated an opportunistic
response to changing interest rate scenarios. We anticipate that if
and when the rate environment stabilizes during the coming year, we
will see increased pressure on margins. We believe our 2022
financial performance demonstrated our ability to effectively
address the challenges related to rapidly increasing interest
rates.
“Asset quality was a significant highlight, with few
nonperforming loans, reduced other real estate owned (OREO), and
strong asset quality ratios. We believe the outlook for continuing
asset quality is very good, reflecting diligent credit management
practices. We have been able to grow commercial, residential
mortgage and consumer loan portfolios while at the same time
improving already strong loan quality.
“The Company’s consistent earnings and capital strength
positioned us to enhance shareholder value by repurchasing
approximately 2% of the Company’s outstanding common stock during
2022 – an action that contributed approximately $0.03 to the year’s
earnings per share (EPS). Our Board of Directors approved an
increased quarterly dividend in 2022, reflecting a commitment to
building shareholder value.
“Our served communities and customers continue to demonstrate
financial and economic strength, and resilience in the face of
inflation and uncertainty about recession later in 2023. We
anticipate that while lending and deposit activity is likely to be
less robust in the coming quarters, we are confident that Bank of
the James is well-positioned to continue forward with moderate
growth, superior financial solutions for customers, and positive
financial performance.”
Highlights
- Net income in the fourth quarter of 2022 increased 5% from a
year earlier, while net income in the 12 months of 2022 rose 18%
compared with the 12 months of 2021. Income growth in 2022 was led
by higher interest income from commercial real estate and retained
residential mortgages, wealth management fees, and fee income from
debit card transactions and treasury services.
- Total interest income in the full year of 2022 increased 9%,
primarily reflecting commercial loan rate adjustments to keep pace
with the rising interest rate environment, an increase in the size
of the investment portfolio, and growth of retained residential
mortgages. Interest income in the fourth quarter of 2022 rose 23%
compared with the fourth quarter of 2021.
- Net interest income rose 22% in the fourth quarter of 2022
compared with a year earlier, primarily reflecting increased
interest income and ongoing interest expense management. Net
interest income in the 12 months of 2022 grew 10% compared with the
12 months of 2021.
- Prompt response to the changing interest rate environment led
to expanded net interest margin and interest spread in fourth
quarter and the full year of 2022 compared with both periods of
2021.
- Total noninterest income in the full year of 2022 rose 18%
compared with 2021. Slowing income in the second half of 2022 from
gain on sale of residential mortgage loans was offset by
interchange income on card activity, growth of commercial treasury
services income, and wealth management fees generated by PWW, which
contributed approximately $0.29 EPS in 2022.
- Loans, net of the allowance for loan losses, increased 5% to
$605.37 million at December 31, 2022 compared with $576.47 million
at December 31, 2021, primarily reflecting residential mortgage and
commercial real estate loan growth.
- Asset quality remained strong, reflected in a ratio of
nonperforming loans to total loans of 0.10% at December 31, 2022
compared with 0.16% at December 31, 2021. Total nonperforming loans
declined by 34% year-over-year, and the Company significantly
trimmed other real estate owned (OREO) during 2022, writing down a
significant portion of OREO based on its recently contracted sales
price.
- Total deposits declined 4% at December 31, 2022 compared with
December 31, 2021. Lower-cost core deposits (noninterest-bearing
demand, NOW, savings and money market accounts) continued to
comprise approximately 85% of total deposits.
- In both periods of 2022, Return on Average Assets (ROAA) and
Return on Average Equity (ROAE) ratios improved significantly from
2021.
- The Company’s share repurchases during 2022 enhanced
shareholder value, contributing approximately $0.03 to EPS.
- On January 17, 2023 the Company’s board of directors approved a
quarterly dividend of $0.08 per share to stockholders of record as
of March 3, 2023 to be paid on March 17, 2023.
- On February 6, 2023, the Company's board of directors approved
a stock repurchase plan to purchase up to $998,000 of the Company's
common stock. The plan authorizes the Company to make purchases
from March 8, 2023 through March 7, 2024, unless extended or sooner
terminated. Purchases may be made in open market transactions or
privately negotiated transactions, in accordance with Rule 10b5-1
and Rule 10b-18 under the Securities Exchange Act of 1934, as
amended. In connection with the adoption of this plan, the board
terminated any other repurchase plans still in effect.
Fourth Quarter, 12 Months of 2022 Operational
Review
Net interest income after recovery of loan losses for the
quarter ended December 31, 2022 was $8.29 million compared with
$7.30 million a year earlier, primarily reflecting higher interest
income, moderately higher year-over-year interest expense, and no
provision for loan losses in the fourth quarter of 2022 and a
$500,000 recovery in the fourth quarter of 2021, as indicated by
the Bank’s allowance for loan losses methodology.
For the 12 months ended December 31, 2022, net interest income
after recovery of loan losses was $30.60 million compared with
$27.58 million a year earlier, reflecting increased interest rates
and loan growth, higher interest income from the Bank’s securities
portfolio, and a $900,000 recovery of loan losses, as indicated by
the Bank’s allowance for loan losses methodology, compared with a
$500,000 recovery in 2021.
Total interest income increased to $8.94 million in the fourth
quarter of 2022 compared with $7.27 million a year earlier. The
quarterly increase reflected accelerating organic loan growth and
interest rate increases. Higher rates have had a positive impact on
the yields earned on interest earning assets. The yield on interest
earning assets in the fourth quarter of 2022 was 3.95%, up from
3.18% a year earlier. Total interest income for the 12 months of
2022 was $31.85 million compared with $29.18 million for the 12
months of 2021, also reflecting accelerating organic loan growth
and interest rate increases. Yield on interest earning assets for
the 12 months of 2022 was 3.46% compared with 3.38% for the 12
months of 2021.
Total interest expense in the fourth quarter of 2022 was
$652,000 compared with $468,000 a year earlier, while interest
expense in the 12 months of 2022 was $2.15 million compared with
$2.10 million in the 12 months of 2021.
J. Todd Scruggs, Executive Vice President and CFO, commented:
“Throughout 2022, improvements in net interest margin and net
interest spread reflected adjustments to our investment strategy
based on our expectation that interest rates would be rising. We
have made upward adjustments to rates on interest earning assets to
match the rate environment and mitigate higher interest
expense.
“We’ve held the line on deposit rates rather than try to compete
by offering untenable rates, and are continuing our strong focus on
attracting and retaining noninterest-bearing commercial deposits
through relationship banking. We are maintaining adequate liquidity
by maintaining a stable level of Fed funds and avoiding short-term
borrowings, which have become very expensive.”
The net interest margin in the fourth quarter of 2022 was 3.67%
and the interest spread was 3.60%, up significantly from the margin
and spread in the fourth quarter of 2021. For the full year of
2022, the net interest margin was 3.23% and interest spread was
3.18%, also up from the full year of 2021.
Noninterest income in the fourth quarter of 2022 was $2.73
million compared with $2.90 million in the fourth quarter of 2021,
with the decline primarily reflecting lower gains on the sale of
residential mortgages and partially offset by year-over-year growth
in service charges, fees and commissions resulting from increased
debit card income. Noninterest income for the full year of 2022 was
$13.24 million compared with $11.21 million for the for the full
year of 2021.
Because of rising interest rates during the second half of 2022,
rates on in-house mortgages became more attractive and resulted in
reduced sales of conventional mortgages to the secondary market.
This, in combination with a decrease in conventional mortgage
originations due to rising mortgage interest rates, resulted in a
decrease in the volume and amount of residential mortgages sold in
the secondary market. Noninterest income in 2022 was highlighted by
year-over-year increased interchange income earned on card activity
and overdraft fees. Income from PWW’s continuing strong performance
contributed approximately $0.29 to earnings in 2022.
Noninterest expense in the fourth quarter of 2022 was $8.62
million compared with $7.91 million in the fourth quarter of 2021.
In the full year of 2022, noninterest expense was $32.74 million
compared with $29.34 million a year earlier. Both periods of 2022
reflected increased salaries and employee benefits related to the
addition of PWW and performance-related cash bonuses paid to
employees, increases in professional and outside expenses
(specifically data processing fees), and an increase in
miscellaneous expenses, primarily related to an isolated check
forgery that resulted in a charge of $362,000. The Bank has a filed
a proof of loss with its insurance company and is waiting for a
coverage determination.
For the three months ended December 31, 2022, ROAE was 16.08 %
and ROAA was 0.82%, with both ratios improving significantly from a
year earlier. For the 12 months ended December 31, 2022, ROAE was
15.59% and ROAA was 0.91%, also up compared with the 12 months of
2021. Efficiency ratio was unchanged year-over-year at 76%.
Balance Sheet Reflects Organic Loan Growth, Strong Asset
Quality
Total assets were $928.57 million at December 31, 2022 compared
with $987.63 million at December 31, 2021, with the decline
primarily reflecting a decline in total deposits, which resulted in
a decrease in Fed funds sold, partially offset by an increase in
net loans.
Loans, net of allowance for loan losses, increased to $605.37
million at December 31, 2022 from $576.47 million at December 31,
2021. The growth in loans primarily reflected new commercial real
estate (CRE) loans and growth in residential mortgages. Commercial
real estate loans (owner occupied and non-owner occupied and
excluding construction loans) were approximately $341.89 million at
December 31, 2022, an increase from $307.95 million at December 31,
2021 that reflected CRE loan activity and growth throughout
2022.
Michael A. Syrek, President of the Bank, commented: “It was a
positive year for commercial real estate. We have continued to
emphasize building full-service relationships with business
clients, including deposits, a robust suite of electronic cash and
treasury management offerings, and credit card interchange. Service
and relationship banking has contributed to customer retention and
mitigated rate shopping as rates have risen.
“We have experienced a slowing of loan demand for all commercial
loans in light of increasing rates and general economic
uncertainty, including inflation, and the threat of recession.
Commercial (C&I) lending has continued to be slow as businesses
are drawing down on cash reserves and are operating cautiously.
Although we anticipate more subdued commercial lending activity
than in past years, we are confident we will earn our share of new
business and will continue to have high client retention.”
Commercial loans (primarily C&I loans) were $95.88 million
at December 31, 2022 compared with $105.07 million at December 31,
2021. Both commercial and residential construction lending activity
slowed in the second half of 2022, primarily reflecting slowing
projects related to commercial expansion.
Residential mortgage loans held by the Bank increased 35% to
$43.05 million at December 31, 2022 from $31.92 million a year
earlier, reflecting increased retention of mortgage loans as higher
rates made it more attractive to originate loans in house. Syrek
noted that while overall demand for purchase mortgages is generally
softening, Bank of the James Mortgage’s well-established reputation
for service and loan processing should support continued
conventional mortgage activity.
A decline in historical loss experience, improved delinquency
trends, and other net improvements in qualitative factors resulted
in a reduction of the Company’s allowance for loan losses since
December 31, 2021. Asset quality has been consistently strong and
stable, with a ratio of nonperforming loans to total loans of 0.10%
at December 31, 2022. The allowance for loan losses to total loans
was 1.02% at December 31, 2022. As the Company finalizes its
allowance for credit losses model in accordance with the current
expected credit loss (CECL) standard (which the Bank was required
to adopt on January 1, 2023), management believes that the
allowance will increase.
Total nonperforming loans of $633,000 declined 34% from December
31, 2021. OREO declined 26% at December 31, 2022 from December 31,
2021, primarily reflecting a third quarter 2022 write-down of a
property that went under contract and sale of foreclosed assets
throughout the year.
Total deposits at December 31, 2022 were $848.14 million,
compared with $887.06 million at December 31, 2021. Total deposits
continued to reflect good noninterest demand deposit activity,
continued trimming of time deposits, and a high percentage of
lower-cost core deposits (noninterest-bearing demand, NOW, savings
and money market accounts) as a percent of total deposits.
The Company’s total retained earnings increased significantly to
$31.03 million at December 31, 2022 from $23.44 million at December
31, 2021. Some measures of shareholder value declined at December
31, 2022, primarily reflecting market value changes of the
Company’s available-for-sale securities portfolio. Total
stockholders’ equity was $50.23 million at December 31, 2022
compared with $69.43 million at December 31, 2021. Book value per
share was $10.85 at December 31, 2022 compared with $14.65 at
December 31, 2021.
These decreases directly resulted from the impact that higher
interest rates had on the market value of the Company’s
available-for-sale securities portfolio. These mark-to-market
losses are excluded from the Bank’s regulatory capital. The Company
does not expect to realize the unrealized losses as it has the
intent and ability to hold the securities until their recovery,
which may be at maturity. The duration of the Company’s overall
securities portfolio is approximately 6 years.
About the Company
Bank of the James, a wholly-owned subsidiary of Bank of the
James Financial Group, Inc. opened for business in July 1999 and is
headquartered in Lynchburg, Virginia. The Bank currently services
customers in Virginia from offices located in Altavista, Amherst,
Appomattox, Bedford, Blacksburg, Charlottesville, Forest,
Harrisonburg, Lexington, Lynchburg, Madison Heights, Roanoke,
Rustburg, and Wytheville. The Bank offers full investment and
insurance services through its BOTJ Investment Services division
and BOTJ Insurance, Inc. subsidiary. The Bank provides mortgage
loan origination through Bank of the James Mortgage, a division of
Bank of the James. The Company provides investment advisory
services through its wholly-owned subsidiary, Pettyjohn, Wood &
White, Inc., an SEC-registered investment advisor. Bank of the
James Financial Group, Inc. common stock is listed under the symbol
“BOTJ” on the NASDAQ Stock Market, LLC. Additional information on
the Company is available at www.bankofthejames.bank.
Cautionary Statement Regarding Forward-Looking
Statements
This press release contains statements that constitute
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. The words “believe,”
“estimate,” “expect,” “intend,” “anticipate,” “plan” and similar
expressions and variations thereof identify certain of such
forward-looking statements which speak only as of the dates on
which they were made. Bank of the James Financial Group, Inc. (the
“Company”) undertakes no obligation to publicly update or revise
any forward-looking statements, whether as a result of new
information, future events, or otherwise. Readers are cautioned
that any such forward-looking statements are not guarantees of
future performance and involve risks and uncertainties, and that
actual results may differ materially from those indicated in the
forward-looking statements as a result of various factors. Such
factors include, but are not limited to, competition, general
economic conditions, potential changes in interest rates, changes
in the value of real estate securing loans made by the Bank as well
as the potential for the resurgence of COVID-19 and geopolitical
conditions. Additional information concerning factors that could
cause actual results to materially differ from those in the
forward-looking statements is contained in the Company’s filings
with the Securities and Exchange Commission.
CONTACT: J. Todd Scruggs, Executive Vice President and Chief
Financial Officer (434) 846-2000.tscruggs@bankofthejames.com
CONSOLIDATED FINANCIAL INFORMATION
FOLLOWS
Bank of the James Financial Group, Inc. and
SubsidiariesConsolidated Balance
Sheets(dollar amounts in thousands, except per
share amounts)(unaudited)
Assets |
12/31/2022 |
|
12/31/2021 |
Cash and due from banks |
$ |
30,025 |
|
|
$ |
29,337 |
|
Federal funds sold |
|
31,737 |
|
|
|
153,816 |
|
Total cash and cash equivalents |
|
61,762 |
|
|
|
183,153 |
|
|
|
|
|
Securities held-to-maturity
(fair value of $3,135 in 2022 and $4,006 in 2021) |
|
3,639 |
|
|
|
3,655 |
|
Securities available-for-sale,
at fair value |
|
185,787 |
|
|
|
161,267 |
|
Restricted stock, at cost |
|
1,387 |
|
|
|
1,324 |
|
Loans, net of allowance for
loan losses of $6,259 in 2022 and $6,915 in 2021 |
|
605,366 |
|
|
|
576,469 |
|
Loans held for sale |
|
2,423 |
|
|
|
1,628 |
|
Premises and equipment,
net |
|
17,974 |
|
|
|
18,351 |
|
Interest receivable |
|
2,736 |
|
|
|
2,064 |
|
Cash value - bank owned life
insurance |
|
19,237 |
|
|
|
18,785 |
|
Customer relationship
Intangible |
|
7,845 |
|
|
|
8,406 |
|
Goodwill |
|
2,054 |
|
|
|
3,001 |
|
Other real estate owned |
|
566 |
|
|
|
761 |
|
Other assets |
|
17,795 |
|
|
|
8,770 |
|
Total assets |
$ |
928,571 |
|
|
$ |
987,634 |
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity |
|
|
|
|
|
|
|
Deposits |
|
|
|
Noninterest bearing demand |
$ |
154,884 |
|
|
$ |
162,286 |
|
NOW, money market and savings |
|
560,479 |
|
|
|
582,000 |
|
Time |
|
132,775 |
|
|
|
142,770 |
|
Total deposits |
|
848,138 |
|
|
|
887,056 |
|
|
|
|
|
Capital notes, net |
|
10,037 |
|
|
|
10,031 |
|
Other borrowings |
|
10,457 |
|
|
|
10,985 |
|
Interest payable |
|
89 |
|
|
|
46 |
|
Other liabilities |
|
9,624 |
|
|
|
10,087 |
|
Total liabilities |
$ |
878,345 |
|
|
$ |
918,205 |
|
|
|
|
|
Stockholders' equity |
|
|
|
Common stock $2.14 par value; authorized 10,000,000 shares; issued
and outstanding |
|
|
|
4,628,657 as of December 31, 2022 and 4,740,657 as of December 31,
2021 |
|
9,905 |
|
|
|
10,145 |
|
Additional paid-in-capital |
|
36,068 |
|
|
|
37,230 |
|
Accumulated other comprehensive (loss) |
|
(26,781 |
) |
|
|
(1,386 |
) |
Retained earnings |
|
31,034 |
|
|
|
23,440 |
|
Total stockholders'
equity |
$ |
50,226 |
|
|
$ |
69,429 |
|
|
|
|
|
Total liabilities and
stockholders' equity |
$ |
928,571 |
|
|
$ |
987,634 |
|
Bank of the James Financial Group, Inc. and
SubsidiariesConsolidated Statements of
Income(dollar amounts in thousands, except per
share amounts)(unaudited)
|
For the Three Months |
|
For the Year |
|
Ended December 31, |
|
Ended December 31, |
Interest Income |
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Loans |
$ |
7,266 |
|
|
$ |
6,440 |
|
|
$ |
26,175 |
|
|
$ |
26,529 |
|
Securities |
|
|
|
|
|
|
|
US Government and agency obligations |
|
324 |
|
|
|
235 |
|
|
|
1,235 |
|
|
|
875 |
|
Mortgage backed securities |
|
460 |
|
|
|
163 |
|
|
|
1,656 |
|
|
|
462 |
|
Municipals |
|
285 |
|
|
|
266 |
|
|
|
1,152 |
|
|
|
865 |
|
Dividends |
|
30 |
|
|
|
28 |
|
|
|
66 |
|
|
|
67 |
|
Corporates |
|
171 |
|
|
|
88 |
|
|
|
566 |
|
|
|
243 |
|
Interest bearing deposits |
|
147 |
|
|
|
7 |
|
|
|
282 |
|
|
|
33 |
|
Federal Funds sold |
|
258 |
|
|
|
40 |
|
|
|
721 |
|
|
|
107 |
|
Total interest income |
|
8,941 |
|
|
|
7,267 |
|
|
|
31,853 |
|
|
|
29,181 |
|
|
|
|
|
|
|
|
|
Interest
Expense |
|
|
|
|
|
|
|
Deposits |
|
|
|
|
|
|
|
NOW, money market savings |
|
181 |
|
|
|
145 |
|
|
|
555 |
|
|
|
564 |
|
Time Deposits |
|
265 |
|
|
|
215 |
|
|
|
732 |
|
|
|
1,105 |
|
Finance leases |
|
23 |
|
|
|
26 |
|
|
|
96 |
|
|
|
106 |
|
Other borrowings |
|
101 |
|
|
|
- |
|
|
|
440 |
|
|
|
- |
|
Capital notes |
|
82 |
|
|
|
82 |
|
|
|
327 |
|
|
|
327 |
|
Total interest expense |
|
652 |
|
|
|
468 |
|
|
|
2,150 |
|
|
|
2,102 |
|
|
|
|
|
|
|
|
|
Net interest income |
|
8,289 |
|
|
|
6,799 |
|
|
|
29,703 |
|
|
|
27,079 |
|
|
|
|
|
|
|
|
|
Recovery of loan losses |
|
- |
|
|
|
(500 |
) |
|
|
(900 |
) |
|
|
(500 |
) |
|
|
|
|
|
|
|
|
Net interest income after recovery of loan
losses |
|
8,289 |
|
|
|
7,299 |
|
|
|
30,603 |
|
|
|
27,579 |
|
|
|
|
|
|
|
|
|
Noninterest
income |
|
|
|
|
|
|
|
Gains on sale of loans held for sale |
|
581 |
|
|
|
2,090 |
|
|
|
5,256 |
|
|
|
8,265 |
|
Service charges, fees and commissions |
|
1,028 |
|
|
|
693 |
|
|
|
3,591 |
|
|
|
2,496 |
|
Wealth management fees |
|
997 |
|
|
|
- |
|
|
|
3,932 |
|
|
|
- |
|
Life insurance income |
|
114 |
|
|
|
115 |
|
|
|
452 |
|
|
|
430 |
|
Other |
|
8 |
|
|
|
6 |
|
|
|
16 |
|
|
|
18 |
|
Loss on sales of available-for-sale securities |
|
(3 |
) |
|
|
- |
|
|
|
(3 |
) |
|
|
- |
|
|
|
|
|
|
|
|
|
Total noninterest income |
|
2,725 |
|
|
|
2,904 |
|
|
|
13,244 |
|
|
|
11,209 |
|
|
|
|
|
|
|
|
|
Noninterest
expenses |
|
|
|
|
|
|
|
Salaries and employee benefits |
|
4,631 |
|
|
|
4,476 |
|
|
|
17,682 |
|
|
|
16,377 |
|
Occupancy |
|
466 |
|
|
|
403 |
|
|
|
1,814 |
|
|
|
1,673 |
|
Equipment |
|
683 |
|
|
|
643 |
|
|
|
2,553 |
|
|
|
2,526 |
|
Supplies |
|
141 |
|
|
|
117 |
|
|
|
521 |
|
|
|
471 |
|
Professional, data processing, and other outside expense |
|
1,512 |
|
|
|
1,116 |
|
|
|
5,056 |
|
|
|
4,094 |
|
Marketing |
|
259 |
|
|
|
214 |
|
|
|
920 |
|
|
|
934 |
|
Credit expense |
|
158 |
|
|
|
234 |
|
|
|
923 |
|
|
|
1,103 |
|
Other real estate expenses, net |
|
7 |
|
|
|
28 |
|
|
|
214 |
|
|
|
102 |
|
FDIC insurance expense |
|
118 |
|
|
|
123 |
|
|
|
500 |
|
|
|
548 |
|
Amortization of intangibles |
|
140 |
|
|
|
- |
|
|
|
560 |
|
|
|
- |
|
Other |
|
503 |
|
|
|
559 |
|
|
|
1,994 |
|
|
|
1,509 |
|
Total noninterest expenses |
|
8,618 |
|
|
|
7,913 |
|
|
|
32,737 |
|
|
|
29,337 |
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
2,396 |
|
|
|
2,290 |
|
|
|
11,110 |
|
|
|
9,451 |
|
|
|
|
|
|
|
|
|
Income tax expense |
|
442 |
|
|
|
431 |
|
|
|
2,151 |
|
|
|
1,862 |
|
|
|
|
|
|
|
|
|
Net Income |
$ |
1,954 |
|
|
$ |
1,859 |
|
|
$ |
8,959 |
|
|
$ |
7,589 |
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding - basic and diluted (1) |
|
4,628,657 |
|
|
|
4,740,657 |
|
|
|
4,698,041 |
|
|
|
4,747,821 |
|
|
|
|
|
|
|
|
|
Net income per common share -
basic and diluted (1) |
$ |
0.42 |
|
|
$ |
0.39 |
|
|
$ |
1.91 |
|
|
$ |
1.60 |
|
|
|
|
|
|
|
|
|
(1) Shares and
per share amounts for all periods have been adjusted to reflect a
10% stock dividend declared in June 2021. |
Bank of the James Financial Group, Inc. and
SubsidiariesDollar amounts in thousands, except
per share dataunaudited
Selected Data: |
ThreemonthsendingDec
31,2022 |
ThreemonthsendingDec
31,2021 |
Change |
YeartodateDec
31,2022 |
YeartodateDec
31,2021 |
Change |
Interest income |
$ |
8,941 |
$ |
7,267 |
|
|
23.04 |
% |
$ |
31,853 |
|
$ |
29,181 |
|
|
9.16 |
% |
Interest expense |
|
652 |
|
468 |
|
|
39.32 |
% |
|
2,150 |
|
|
2,102 |
|
|
2.28 |
% |
Net interest income |
|
8,289 |
|
6,799 |
|
|
21.91 |
% |
|
29,703 |
|
|
27,079 |
|
|
9.69 |
% |
Recovery of loan losses |
|
- |
|
(500 |
) |
|
-100.00 |
% |
|
(900 |
) |
|
(500 |
) |
|
80.00 |
% |
Noninterest income |
|
2,725 |
|
2,904 |
|
|
-6.16 |
% |
|
13,244 |
|
|
11,209 |
|
|
18.16 |
% |
Noninterest expense |
|
8,618 |
|
7,913 |
|
|
8.91 |
% |
|
32,737 |
|
|
29,337 |
|
|
11.59 |
% |
Income taxes |
|
442 |
|
431 |
|
|
2.55 |
% |
|
2,151 |
|
|
1,862 |
|
|
15.52 |
% |
Net income |
|
1,954 |
|
1,859 |
|
|
5.11 |
% |
|
8,959 |
|
|
7,589 |
|
|
18.05 |
% |
Weighted average shares outstanding - basic and diluted (1) |
|
4,628,657 |
|
4,740,657 |
|
|
(112,000 |
) |
|
4,698,041 |
|
|
4,747,821 |
|
|
(49,780 |
) |
Basic and diluted net income per share (1) |
$ |
0.42 |
$ |
0.39 |
|
$ |
0.03 |
|
$ |
1.91 |
|
$ |
1.60 |
|
$ |
0.31 |
|
Balance Sheet atperiod end: |
Dec 31,2022 |
Dec 31,2021 |
Change |
Dec 31,2021 |
Dec 31,2020 |
Change |
Loans, net |
$ |
605,366 |
$ |
576,469 |
|
5.01 |
% |
$ |
576,469 |
$ |
601,934 |
|
-4.23 |
% |
Loans held for sale |
|
2,423 |
|
1,628 |
|
48.83 |
% |
|
1,628 |
|
7,102 |
|
-77.08 |
% |
Total securities |
|
189,426 |
|
164,922 |
|
14.86 |
% |
|
164,922 |
|
93,856 |
|
75.72 |
% |
Total deposits |
|
848,138 |
|
887,056 |
|
-4.39 |
% |
|
887,056 |
|
764,967 |
|
15.96 |
% |
Stockholders' equity |
|
50,226 |
|
69,429 |
|
-27.66 |
% |
|
69,429 |
|
66,732 |
|
4.04 |
% |
Total assets |
|
928,571 |
|
987,634 |
|
-5.98 |
% |
|
987,634 |
|
851,386 |
|
16.00 |
% |
Shares outstanding (1) |
|
4,628,657 |
|
4,740,657 |
|
(112,000 |
) |
|
4,740,657 |
|
4,339,436 |
|
401,221 |
|
Book value per share |
$ |
10.85 |
$ |
14.65 |
$ |
(3.80 |
) |
$ |
14.65 |
$ |
15.38 |
$ |
(0.73 |
) |
Daily averages: |
ThreemonthsendingDec
31,2022 |
ThreemonthsendingDec
31,2021 |
Change |
YeartodateDec
31,2022 |
YeartodateDec
31,2021 |
Change |
Loans |
$ |
618,948 |
$ |
589,277 |
5.04 |
% |
$ |
604,990 |
$ |
601,272 |
0.62 |
% |
Loans held for sale |
|
3,722 |
|
5,929 |
-37.22 |
% |
|
3,913 |
|
5,815 |
-32.71 |
% |
Total securities |
|
229,884 |
|
159,307 |
44.30 |
% |
|
223,137 |
|
128,886 |
73.13 |
% |
Total deposits |
|
867,569 |
|
873,894 |
-0.72 |
% |
|
888,292 |
|
833,216 |
6.61 |
% |
Stockholders' equity |
|
48,207 |
|
69,173 |
-30.31 |
% |
|
57,478 |
|
66,937 |
-14.13 |
% |
Interest earning assets |
|
897,711 |
|
906,409 |
-0.96 |
% |
|
919,992 |
|
862,500 |
6.67 |
% |
Interest bearing liabilities |
|
737,375 |
|
718,714 |
2.60 |
% |
|
746,479 |
|
682,089 |
9.44 |
% |
Total assets |
|
950,558 |
|
962,006 |
-1.19 |
% |
|
980,507 |
|
920,474 |
6.52 |
% |
Financial Ratios: |
ThreemonthsendingDec
31,2022 |
ThreemonthsendingDec
31,2021 |
Change |
YeartodateDec
31,2022 |
YeartodateDec
31,2021 |
Change |
Return on average assets |
0.82 |
% |
0.77 |
% |
0.05 |
|
0.91 |
% |
0.82 |
% |
0.09 |
|
Return on average equity |
16.08 |
% |
10.66 |
% |
5.42 |
|
15.59 |
% |
11.34 |
% |
4.25 |
|
Net interest margin |
3.67 |
% |
2.98 |
% |
0.69 |
|
3.23 |
% |
3.14 |
% |
0.09 |
|
Efficiency ratio |
78.25 |
% |
81.55 |
% |
(3.30 |
) |
76.23 |
% |
76.62 |
% |
(0.39 |
) |
Average equity to average assets |
5.07 |
% |
7.19 |
% |
(2.12 |
) |
5.86 |
% |
7.27 |
% |
(1.41 |
) |
Allowance for loan losses: |
ThreemonthsendingDec
31,2022 |
ThreemonthsendingDec
31,2021 |
Change |
YeartodateDec
31,2022 |
YeartodateDec
31,2021 |
Change |
Beginning balance |
$ |
6,394 |
|
$ |
7,276 |
|
-12.12 |
% |
$ |
6,915 |
|
$ |
7,156 |
|
-3.37 |
% |
Recovery of loan losses |
|
- |
|
|
(500 |
) |
-100.00 |
% |
|
(900 |
) |
|
(500 |
) |
80.00 |
% |
Charge-offs |
|
(152 |
) |
|
(11 |
) |
1281.82 |
% |
|
(162 |
) |
|
(91 |
) |
78.02 |
% |
Recoveries |
|
17 |
|
|
150 |
|
-88.67 |
% |
|
406 |
|
|
350 |
|
16.00 |
% |
Ending balance |
|
6,259 |
|
|
6,915 |
|
-9.49 |
% |
|
6,259 |
|
|
6,915 |
|
-9.49 |
% |
Nonperforming assets: |
Dec 31,2022 |
Dec 31,2021 |
Change |
Dec 31,2021 |
Dec 31,2020 |
Change |
Total nonperforming loans |
$ |
633 |
$ |
954 |
-33.65 |
% |
$ |
954 |
$ |
2,064 |
-53.78 |
% |
Other real estate owned |
|
566 |
|
761 |
-25.62 |
% |
|
761 |
|
1,105 |
-31.13 |
% |
Total nonperforming assets |
|
1,199 |
|
1,715 |
-30.09 |
% |
|
1,715 |
|
3,169 |
-45.88 |
% |
Troubled debt restructurings - (performing portion) |
|
431 |
|
372 |
15.86 |
% |
|
372 |
|
392 |
-5.10 |
% |
Asset quality ratios: |
Dec 31,2022 |
Dec 31,2021 |
Change |
Dec 31,2021 |
Dec 31,2020 |
Change |
Nonperforming loans to total loans |
0.10 |
% |
0.16 |
% |
(0.06 |
) |
0.16 |
% |
0.34 |
% |
(0.18 |
) |
Allowance for loan losses to total loans |
1.02 |
% |
1.19 |
% |
(0.17 |
) |
1.19 |
% |
1.17 |
% |
0.02 |
|
Allowance for loan losses to nonperforming loans |
988.78 |
% |
724.84 |
% |
263.94 |
|
724.84 |
% |
346.71 |
% |
378.13 |
|
(1) Shares and per share amounts for all periods have been
adjusted to reflect a 10% stock dividend declared in June 2021.
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