LYNCHBURG, Va. - Bank of the James Financial Group, Inc. (NASDAQ:BOTJ), the parent company of Bank of the James and Pettyjohn, Wood & White, Inc., announced its unaudited financial results for the first quarter ended March 31, 2024.
The bank reported a net income of $2.19 million, or $0.48 per basic and diluted share, an increase from $1.98 million, or $0.43 per share, for the same period in 2023.
Total interest income for the quarter rose by 15.51% to $10.51 million, up from $9.10 million a year earlier, mainly due to higher commercial loan interest rates and a higher yield on Fed Funds sold. Net interest income before credit losses was $6.95 million, a decrease from $7.64 million in the previous year, with the decline primarily attributed to higher interest expenses resulting from deposit growth and a higher rate environment.
The bank's net interest margin decreased to 3.02% from 3.48% a year earlier, reflecting the impact of prevailing interest rate conditions. Non-interest income increased to $3.31 million, led by fee income from commercial treasury services and wealth management income from Pettyjohn, Wood & White, which contributed $0.08 per share to the quarter's earnings.
Loans, net of the allowance for credit losses, remained stable at $601.11 million at the end of March, compared to $601.92 million at the end of December 2023. Asset quality continued to be strong, with a ratio of nonperforming loans to total loans at 0.09%.
Total deposits grew to $893.50 million, up from $878.46 million at the end of December 2023. The bank also reported modest growth in stockholders' equity and retained earnings, with book value per share increasing to $13.30 from $13.21 at the end of the previous quarter.
The bank's CEO, Robert R. Chapman III, highlighted the company's focus on execution, customer service, electronic banking products, and asset quality as key drivers of earnings growth. He also noted the bank's proactive response to the interest rate environment and efforts to appropriately price loans and deposits.
Furthermore, the bank plans to expand its presence in the Roanoke, Lexington, and Charlottesville markets with new offices in Buchanan and Nellysford, Virginia, in the second quarter of 2024.
The information is based on a press release statement from Bank of the James Financial Group, Inc.
InvestingPro Insights
Amidst the backdrop of Bank of the James Financial Group's first-quarter performance, investors may find the following InvestingPro data and tips particularly insightful. The bank's market capitalization stands at a modest $44.98 million, reflecting its position in the financial sector.
With a favorable price-to-earnings (P/E) ratio of 5.23, and an even slightly lower adjusted P/E ratio for the last twelve months as of Q4 2023 at 5.21, Bank of the James is trading at a low earnings multiple, which could indicate that its stock is potentially undervalued compared to earnings.
While revenue has seen a slight decline of 2.42% over the last twelve months as of Q4 2023, the bank has maintained a robust operating income margin of 26.41%, showcasing its ability to manage operational costs effectively.
Moreover, the dividend yield as of February 2024 stands at a solid 4.0%, with a notable dividend growth of 25.0% over the last twelve months, pointing to the bank's commitment to returning value to shareholders.
This is further bolstered by the fact that Bank of the James has not only raised its dividend for 3 consecutive years but has also maintained dividend payments for 11 consecutive years, according to InvestingPro Tips.
For those considering an investment in Bank of the James, it's worth noting that the InvestingPro platform offers a fair value estimate of $12.64 for the bank's stock, suggesting potential upside from the previous close price of $9.99. For a deeper dive into the bank's financials and to access additional InvestingPro Tips, visit https://www.investing.com/pro/BOTJ. There are 6 additional tips available on InvestingPro, which could provide further guidance on the bank's performance and potential investment opportunities. To enhance your investing strategy, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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