Bank of the James Financial Group, Inc. reported strong financial performance for the second quarter of 2025, with net income at $2.70 million, or $0.60 per share. The Bank’s total interest income rose by 6%, reaching $11.64 million in the second quarter. Net interest margin improved to 3.45%, the highest in recent quarters.

The Bank achieved a milestone by retiring approximately $10 million in capital notes. This move is expected to reduce interest expenses annually by approximately $327,000. The Bank remains well capitalized, with a Tier 1 leverage ratio of 8.85% as of June 30, 2025.

In the second quarter of 2025, net interest income increased by 16% to $8.25 million. Total interest income rose to $11.64 million, while interest expense declined by 12%. The Bank’s focus on growing core deposits contributed to stable interest income and expense.

Strong asset quality ratios were maintained, with nonperforming loans at 0.28% of total loans and no other real estate owned. Total assets stood at $1.04 billion at June 30, 2025, reflecting growth in securities and loans. Stockholders’ equity increased to $71.67 million, with a book value per share of $15.77.

Key financial ratios also showed positive trends, with a return on average assets of 1.06% and a return on average equity of 15.89% for the second quarter of 2025. The Bank’s efficiency ratio improved to 76.71%, reflecting effective cost management strategies.

Asset quality metrics remained strong, with the allowance for credit losses for loans to total loans at 0.96%. Nonperforming assets increased slightly to $1.85 million at June 30, 2025. The Bank continues to monitor creditworthiness diligently, ensuring financial stability.

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