0001275101-26-000010
SEC filingBank of the James Financial Group, Inc. reported net income of $9.0 million for fiscal year 2025, an increase from $7.9 million in 2024. Total revenue, comprising net interest income of $32.8 million and noninterest income of $15.9 million, grew to $48.7 million from $44.4 million in the prior year. Key profit drivers included a $3.6 million increase in net interest income, driven by higher loan interest income, and a $0.7 million rise in noninterest income, primarily from wealth management fees. Noninterest expenses increased by $2.4 million to $37.5 million, largely due to higher salaries and employee benefits. The company ended the year with total assets of $1.04 billion, total deposits of $937.1 million, and stockholders' equity of $80.0 million. The forward-looking significance includes continued growth in loans and deposits, expansion of wealth management assets under management to $1.03 billion, and maintenance of strong regulatory capital ratios, with the bank categorized as well capitalized.
Bank of the James Financial Group, Inc. reported net income of $9.0 million for the fiscal year ended December 31, 2025, representing a 13.6% increase from $7.9 million in 2024. Total interest income grew to $46.7 million from $44.6 million, while interest expense decreased to $13.8 million from $15.4 million, resulting in net interest income of $32.8 million, up from $29.2 million. Noninterest income increased to $15.9 million from $15.1 million, driven by higher wealth management fees and service charges. Noninterest expenses rose to $37.5 million from $35.1 million, primarily due to increased salaries and employee benefits. The company's effective tax rate was 19.0% compared to 19.9% in the prior year.
Revenue growth was driven by multiple segments. The Community Banking segment generated $8.8 million in income before taxes, up from $7.8 million, with net interest income of $33.4 million. The Mortgage Banking segment contributed $0.7 million, down from $0.8 million, with gains on sales of loans held for sale of $4.9 million. The Investment Advisory segment reported $2.5 million, up from $2.1 million, with wealth management fees of $5.3 million. Geographic concentration remains in Central Virginia and the Shenandoah Valley, with no material foreign operations. Loan interest income of $37.3 million was the largest component of total revenue.
Net interest margin improved as net interest income increased by 12.2% year-over-year, while average earning assets grew. The efficiency ratio, calculated as noninterest expenses divided by total revenue (net interest income plus noninterest income), was approximately 77.1%, compared to 79.1% in 2024, indicating improved operational efficiency. Salaries and employee benefits, the largest expense category, increased to $21.0 million from $19.3 million. The provision for credit losses was a recovery of $35,000, compared to a recovery of $655,000 in 2024, reflecting stable credit quality.
Net cash provided by operating activities was $11.7 million, primarily from net income adjusted for non-cash items including depreciation and amortization of $1.3 million. Investing activities used $42.4 million, mainly for purchases of securities available-for-sale ($44.3 million) and net loan originations ($24.6 million). Financing activities provided $41.9 million, largely from a net increase in deposits of $54.7 million. Total assets increased to $1.04 billion from $979.2 million, with loans net of allowance at $661.4 million. Total deposits grew to $937.1 million from $882.4 million. The company maintained strong liquidity with cash and cash equivalents of $84.5 million. Total stockholders' equity was $80.0 million, with a book value per share of approximately $17.61.
Management's discussion highlights continued focus on organic growth in loans and deposits, expansion of wealth management services, and maintenance of strong credit quality. Strategic priorities include leveraging the three business segments—community banking, mortgage banking, and investment advisory—to drive cross-selling opportunities. Risk factors include concentration in the Central Virginia market, exposure to local economic conditions, and regulatory requirements. The bank is well capitalized with total capital to risk-weighted assets of 12.54%, above the regulatory minimum of 10.50%. No specific quantitative guidance for future periods is provided in the filing.