Bank of the James Financial Group, Inc. reported record third‑quarter 2025 earnings, with net interest income rising to $8.30 million, a 10.5% increase from $7.51 million in the same quarter last year. Net interest margin expanded to 3.44%, up from 3.16% in Q3 2024, while total interest income grew to $11.77 million, a 1.8% increase year‑over‑year. Noninterest income reached $4.17 million, up 9.3% from $3.82 million in Q3 2024, and earnings per share were $0.61 for the quarter, compared with $0.44 in Q3 2024.
Noninterest expense increased to $9.16 million from $8.78 million in Q3 2024, reflecting higher salaries and consulting fees. The allowance for credit losses fell to $6.30 million, or 0.95% of total loans, down from 1.09% at year‑end 2024. Nonperforming loans were $1.85 million, up modestly from $1.64 million at year‑end 2024, indicating strong credit quality.
Total assets grew to $1.02 billion, deposits rose to $919.80 million, and core deposits were $680.96 million. The Tier 1 leverage ratio improved to 9.02%, and equity increased to $76.97 million, underscoring a robust capital position.
Strategic actions included the retirement of approximately $10 million in capital notes in Q2 2025, which helped reduce interest expense and support the leverage ratio. In late October 2025, the company realigned its leadership, moving J. Todd Scruggs from CFO to CIO and appointing Eric Sorenson as CFO effective January 2026. The board also declared a quarterly dividend of $0.10 per share, payable December 5 2025.
Management highlighted that disciplined loan pricing, efficient cost management, and strong asset quality drove the record earnings. The company noted that community banking and mortgage segments were key contributors, while the investment advisory segment continued to grow. Despite a volatile interest‑rate environment, the bank’s deposit growth and margin expansion position it to sustain profitability moving forward.
The results reinforce Bank of the James’s strategy of balanced growth across its community banking, mortgage, and investment advisory segments, and demonstrate resilience amid broader industry headwinds.
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