Bank of the James Announces Third Quarter, Nine Months of 2022 Financial Results and Declaration of Dividend

Rhea-AI Summary

Bank of the James Financial Group (BOTJ) reported record earnings for Q3 2022, with net income of $2.57 million ($0.55 per share), a 37% increase year-over-year. For the nine-month period, net income rose 22% to $7.01 million ($1.48 per share). Total interest income increased by 15%, driven by commercial real estate lending and rising interest rates. The company repurchased 2% of its shares and increased its quarterly dividend by 14% to $0.08 per share. Despite strong asset quality, concerns about declining commercial lending activity were noted due to rising interest rates.

Positive

• Record net income of $2.57 million in Q3 2022, up 37% YoY.
• Total interest income increased by 15% in Q3 2022.
• Net interest income rose 16%, reflecting strong growth in commercial real estate loans.
• Repurchased approximately 2% of outstanding shares.
• Quarterly dividend increased by 14% to $0.08 per share.

Negative

• Commercial lending activity slowed due to rising interest rates.
• Total stockholders' equity decreased to $48.3 million from $69.4 million since December 2021.

Record Quarterly Earnings, Strong Financial Ratios, Asset Quality

LYNCHBURG, Va., Oct. 21, 2022 (GLOBE NEWSWIRE) -- 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 nine month periods ended September 30, 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 September 30, 2022 was a record $2.57 million or $0.55 per basic and diluted share compared with $1.88 million or $0.40 per basic and diluted share for the three months ended September 30, 2021. Net income for the nine months ended September 30, 2022 was $7.01 million or $1.48 per basic and diluted share compared with $5.73 million or $1.21 per basic and diluted share for the nine months ended September 30, 2021.

Robert R. Chapman III, CEO, commented: “The Company’s record third quarter earnings and continued strong financial performance underscored the importance of balanced income contributions from a broad range of commercial and retail banking products and expanded wealth management services. Maintaining high asset quality, focusing on operational efficiency and interest rate management supported strong bottom-line performance.

“In the third quarter, productivity as measured by return on average assets exceeded 1%, reaching its highest level in several years. Following several years of navigating an extremely low interest rate environment, our net interest margin improved rapidly in the quarter, as did interest rate spread. These improvements were reflected in net income expansion in the third quarter and nine months of 2022.

“Asset quality remained strong, with few nonperforming loans, further reduction of the Company’s Other Real Estate Owned (OREO), and strong asset quality ratios. As in the past two quarters, we recorded a recovery of loan losses as there was no requirement to provide for loan losses. Productivity, efficiency and asset quality have greatly contributed to record earnings.

“Loan growth and the Company’s prompt response to rising interest rates led to 16% year-over-year growth in net interest income in the third quarter, and 6% growth in the nine-month period compared with a year earlier. In both periods of 2022, we saw double-digit growth of noninterest income compared with a year earlier. Expanded use of fee-based electronic corporate cash management services and income from PWW strengthened noninterest income.

“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 the quarter. Our Board of Directors also approved an increased quarterly dividend of $0.08 per share, an increase of 14% from last quarter, reflecting a commitment to building value for shareholders even in the face of changing and challenging stock market conditions.

“The communities and customers we serve continue to demonstrate financial strength and stability. Rising interest rates and concerns about inflation and the economy have understandably slowed activity in commercial lending. Our residential mortgage origination business, which has been exceptionally brisk in the past several years, also experienced the impact of rising interest rates on demand – particularly mortgage refinancings. We expect Bank of the James’ reputation for loan processing, service and pricing will support our continued leadership in purchase mortgage originations.

“As we progress toward year-end, we look forward to providing superior financial solutions for customers and growth in value which shareholders expect.”

Highlights

• Net income in the third quarter of 2022 increased 37% from a year earlier, while net income in the nine months of 2022 rose 22% compared with the nine months of 2021. Income growth in both periods of 2022 reflected balanced contributions from commercial and retail banking, residential mortgage originations, wealth management, and loan loss recoveries.
• Total interest income in the third quarter of 2022 increased 15% from the prior year’s third quarter as commercial real estate lending continued to grow and rate-adjusted loans reflected the rising interest rate environment.
• Net interest income was $7.9 million in the third quarter of 2022, up 16% from a year earlier, primarily reflecting increased interest income and continuing low interest expense. Net interest income in the nine months of 2022 grew 6% compared with the nine months of 2021.
• Total noninterest income in the third quarter of 2022 rose 37% compared with a year earlier as slowing income from gain on sale of residential mortgage loans was more than offset by wealth management fees and interchange income on card activity. Noninterest income in the nine months of 2022 increased 27% compared with the same period of 2021.
• Loans, net of the allowance for loan losses, increased 7% to $614.11 million at September 30, 2022 compared with $576.50 million at December 31, 2021, primarily reflecting commercial loan growth.
• Asset quality remained strong, reflected in a ratio of nonperforming loans to total loans of 0.13% at September 30, 2022 compared with 0.16% at December 31, 2021. The Company continued to trim OREO, writing down a significant portion of OREO based on its recently contracted sales price.
• Total deposits declined marginally at September 30, 2022 compared with December 31, 2021 and reflected continued strength of lower-cost core deposits (noninterest-bearing demand, NOW, savings and money market accounts), which were 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 repurchased 112,000 shares of its common stock during the quarter for an aggregate of $1,402,000, which equates to an average price of approximately $12.51 per share.
• On October 18, 2022 the Company’s board of directors approved a quarterly dividend of $0.08 per share (up from $0.07 last quarter) to stockholders of record as of November 25, 2022, to be paid on December 9, 2022.

Third Quarter, Nine Months of 2022 Operational Review

Net interest income after recovery of loan losses for the quarter ended September 30, 2022 was $8.2 million compared with $6.8 million a year earlier, primarily reflecting higher interest income, stable year-over-year interest expense, and a $300,000 recovery of loan losses, as indicated by the Bank’s allowance for loan losses methodology.

For the nine months ended September 30, 2022, net interest income after recovery of loan losses was $22.3 million compared with $20.3 million a year earlier, reflecting increased interest rates, higher interest income from the Bank’s securities portfolio, a decrease in interest expense, and a $900,000 recovery of loan losses, as indicated by the Bank’s allowance for loan losses methodology.

Total interest income increased to $8.4 million in the third quarter of 2022 compared with $7.3 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 third quarter of 2022 was 3.64%, up significantly from a year earlier. Total interest income for the nine months of 2022 was $22.9 million compared with $21.9 million for the nine months of 2021, also reflecting accelerating organic loan growth and interest rate increases.

Total interest expense in the third quarter of 2022 was $499,000 compared with $493,000 a year earlier, while interest expense in the nine months of 2022 was $1.5 million, down 8% from $1.6 million in the nine months of 2021. Both periods reflected ongoing reductions in the cost of time deposits, continued high levels of lower-cost core deposits (noninterest-bearing demand, NOW, savings and money market accounts), partially offset by interest expense on a loan used to finance the 2021 acquisition of PWW. In the second quarter of 2022, the company negotiated a lower rate paid on the acquisition loan.

J. Todd Scruggs, Executive Vice President and CFO, commented: “Improvements in net interest margin and net interest spread in the third quarter of 2022 reflected adjustments to our investment strategy based on our expectation that interest rates would be rising, and our ability to successfully manage our deposit costs.

“Earlier in the year, the Company’s actions included shifting a significant amount of investment funds from Fed Funds into its fixed income portfolio as yields became more attractive. We have also adjusted loan rates upward to be consistent with the rising interest rate environment with the expectation it might lead to somewhat slower commercial loan activity. Although some borrowers have sought lower-rate loans from other lenders or delayed borrowing decisions, most of our clients continue to appreciate the value of their full-service relationship with Bank of the James.”

The net interest margin in the third quarter of 2022 was 3.43% and the interest spread was 3.38%, up significantly from the margin and spread in both the third quarter of 2021 and the second quarter of 2022. For the first nine months of 2022, the net interest margin was 3.09% and interest spread was 3.04%.

Noninterest income in the third quarter of 2022 was $3.9 million compared with $2.8 million in the third quarter of 2021, while noninterest income in the nine months of 2022 was $10.5 million compared with $8.3 million for the nine months of 2021. Gains on the sale of residential mortgage loans held for sale declined in both periods compared with a year earlier. Higher interest rates negatively impacted mortgage origination activity, particularly refinancings. Management noted that the Bank’s reputation for service, pricing, and loan processing efficiency supported continued purchase mortgage activity.

Growth in fee income in the third quarter of 2022 primarily reflected increased interchange income earned on card activity and overdraft fees, as well as a $0.07 per share income contribution from PWW.

Noninterest expense in the third quarter of 2022 was $8.9 million compared with $7.3 million in the third quarter of 2021. In the nine months of 2022, noninterest expense was $24.1 million compared with $21.4 million a year earlier. Both periods of 2022 reflected increased salaries and employee benefits primarily related to the addition of PWW.

For the three months ended September 30, 2022, ROAE was 19.47% and ROAA was 1.05%, with both ratios up considerably from a year earlier. For the nine months ended September 30, 2022, ROAE was 15.45% and ROAA was 0.95%, also up from the nine months of 2021.

Balance Sheet Reflects Organic Loan Growth, Strong Asset Quality

Total assets were $962.57 million at September 30, 2022 compared with $987.63 million at December 31, 2021. Loans, net of allowance for loan losses, increased to $614.12 million at September 30, 2022 from $576.47 million at December 31, 2021. The growth in loans receivable primarily reflected new CRE loans. Commercial real estate loans (owner occupied and non-owner occupied and excluding construction loans) were approximately $336.88 million at September 30, 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: “We have had several years of strong, steady growth in CRE lending, which we believe reflects the outstanding financial solutions Bank of the James offers and superior service from skilled relationship managers. Residential housing construction lending showed continued year-over-year growth, and commercial construction lending slowed year-over-year.

“As expected, we did experience a slowing of loan demand in the third quarter. In light of interest rate increases and economic uncertainties, we anticipate continuing softening in commercial loan demand, although we continue to have an attractive loan pipeline and good loan activity. Importantly, the quality of our loan portfolio has remained exceptionally high – a very positive indication of customers’ continued financial strength.”

Commercial loans (primarily C&I loans) were $101.23 million at September 30, 2022 compared with $105.07 million at December 31, 2021. Commercial construction loans at September 30, 2022 were $20.34 million, declining slightly from prior quarters as previous projects were completed. Residential construction lending was up from a year earlier, reflecting continuing demand for new housing in several of the Company’s markets. Secured consumer lending increased significantly at September 30, 2022 compared with September 30, 2021.

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 0.13% at September 30, 2022. The allowance for loan losses to total loans was 1.03% at September 30, 2022.

Total nonperforming loans of $788,000 were down 17% from December 31, 2021. OREO declined 26% at September 30, 2022 from December 31, 2021, reflecting a third quarter 2022 write-down of a property that went under contract.

Total deposits at September 30, 2022 were $883.07 million, compared with $887.06 million at December 31, 2021. Total deposits continued to reflect good demand deposit activity and continued trimming of time deposits.

The Company’s total retained earnings increased to $29.5 million at September 30, 2022 from $23.4 million at December 31, 2021. Some measures of shareholder value declined at September 30, 2022, primarily reflecting market value changes of the Company’s available-for-sale securities portfolio. Total stockholders’ equity decreased to $48.3 million from $69.4 million at December 31, 2021. This corresponds to a decrease of $4.21 per share in book value to $10.44 at September 30, 2022 from $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.

For the nine months ended September 30, 2022, the value of the Bank’s available-for-sale securities portfolio has decreased by $25.70 million. The decrease is attributable to changes in market rates of interest rather than the credit concerns of the issuers. This decrease was responsible for a $5.55 per share decrease in book value from December 31, 2021 through September 30, 2022. This decrease in book value per share was partially offset by stock repurchases during the nine months of 2022. 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 6.25 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 Subsidiaries
Consolidated Balance Sheets
(dollar amounts in thousands, except per share amounts)

	(unaudited)
Assets	9/30/2022				12/31/2021
Cash and due from banks	$	38,622			$	29,337
Federal funds sold		42,398				153,816
Total cash and cash equivalents		81,020				183,153
Securities held-to-maturity (fair value of $3,192 in 2022 and $4,006 in 2021)		3,643				3,655
Securities available-for-sale, at fair value		191,131				161,267
Restricted stock, at cost		1,387				1,324
Loans, net of allowance for loan losses of $6,394 in 2022 and $6,915 in 2021		614,117				576,469
Loans held for sale		3,239				1,628
Premises and equipment, net		18,250				18,351
Interest receivable		2,382				2,064
Cash value - bank owned life insurance		19,123				18,785
Customer relationship Intangible		7,986				8,406
Goodwill		3,819				3,001
Other real estate owned		566				761
Income taxes receivable		-				77
Deferred tax asset		7,431				1,371
Other assets		8,476				7,322
Total assets	$	962,570			$	987,634
Liabilities and Stockholders' Equity
Deposits
Noninterest bearing demand	$	155,984			$	162,286
NOW, money market and savings		598,964				582,000
Time		128,121				142,770
Total deposits		883,069				887,056
Capital notes, net		10,037				10,031
Other borrowings		10,596				10,985
Income taxes payable		374				-
Interest payable		37				46
Other liabilities		10,118				10,087
Total liabilities	$	914,231			$	918,205
Stockholders' equity
Common stock $2.14 par value; authorized 10,000,000 shares; issued and outstanding 4,628,657 as of September 30, 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		(27,084	)			(1,386	)
Retained earnings		29,450				23,440
Total stockholders' equity	$	48,339			$	69,429
Total liabilities and stockholders' equity	$	962,570			$	987,634

Bank of the James Financial Group, Inc. and Subsidiaries
Consolidated Statements of Income
(dollar amounts in thousands, except per share amounts)
(unaudited)

	For the Three Months							For the Nine Months
	Ended September 30,							Ended September 30,
Interest Income		2022				2021			2022				2021
Loans	$	6,830			$	6,605		$	18,909			$	20,089
Securities
US Government and agency obligations		331				230			911				640
Mortgage backed securities		437				138			1,196				299
Municipals		289				243			867				599
Dividends		5				4			36				39
Other (Corporates)		144				55			395				155
Interest bearing deposits		101				7			135				26
Federal Funds sold		262				33			463				67
Total interest income		8,399				7,315			22,912				21,914
Interest Expense
Deposits
NOW, money market savings		133				146			374				419
Time Deposits		143				239			467				890
Finance leases		24				26			73				80
Other borrowings		117				-			339				-
Capital notes		82				82			245				245
Total interest expense		499				493			1,498				1,634
Net interest income		7,900				6,822			21,414				20,280
Recovery of loan losses		(300	)			-			(900	)			-
Net interest income after provision for recovery of loan losses		8,200				6,822			22,314				20,280
Noninterest income
Gains on sale of loans held for sale		1,472				2,091			4,675				6,175
Service charges, fees and commissions		1,313				612			2,563				1,803
Wealth management fees		959				-			2,935				-
Life insurance income		113				117			338				315
Other income (loss)		(3	)			2			8				12
Total noninterest income		3,854				2,822			10,519				8,305
Noninterest expenses
Salaries and employee benefits		4,529				4,093			13,051				11,901
Occupancy		445				437			1,348				1,270
Equipment		647				626			1,870				1,883
Supplies		116				120			380				354
Professional, data processing, and other outside expense		1,619				1,029			3,544				2,978
Marketing		222				209			661				720
Credit expense		244				309			765				869
Other real estate expenses, net		195				1			207				74
FDIC insurance expense		121				137			382				425
Amortization of intangibles		140				-			420				-
Other		601				337			1,491				950
Total noninterest expenses		8,879				7,298			24,119				21,424
Income before income taxes		3,175				2,346			8,714				7,161
Income tax expense		601				465			1,709				1,431
Net Income	$	2,574			$	1,881		$	7,005			$	5,730
Weighted average shares outstanding - basic and diluted (1)		4,683,581				4,740,657			4,721,423				4,750,235
Net income per common share - basic and diluted (1)	$	0.55			$	0.40		$	1.48			$	1.21

^{(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 Subsidiaries
Dollar amounts in thousands, except per share data
(unaudited)

Selected Data:	Three months ending Sep 30, 2022			Three months ending Sep 30, 2021		Change			Year to date Sep 30, 2022			Year to date Sep 30, 2021		Change
Interest income	$8,399			$7,315		14.82		%	$22,912			$21,914		4.55		%
Interest expense	499			493		1.22		%	1,498			1,634		-8.32		%
Net interest income	7,900			6,822		15.80		%	21,414			20,280		5.59		%
Recovery of loan losses	(300		)	-		N/A			(900		)	-		N/A
Noninterest income	3,854			2,822		36.57		%	10,519			8,305		26.66		%
Noninterest expense	8,879			7,298		21.66		%	24,119			21,424		12.58		%
Income taxes	601			465		29.25		%	1,709			1,431		19.43		%
Net income	2,574			1,881		36.84		%	7,005			5,730		22.25		%
Weighted average shares outstanding - basic (1)	4,683,581			4,740,657		(57,076		)	4,721,423			4,750,235		(28,812		)
Weighted average shares outstanding - diluted (1)	4,683,581			4,740,657		(57,076		)	4,721,423			4,750,235		(28,812		)
Basic net income per share (1)	$0.55			$0.40		$0.15			$1.48			$1.21		$0.27
Fully diluted net income per share (1)	$0.55			$0.40		$0.15			$1.48			$1.21		$0.27

^{(1) Shares and per share amounts for all periods have been adjusted to reflect a 10% stock dividend declared in June 2021.}

Balance Sheet at period end:	Sep 30, 2022		Dec 31, 2021		Change			Sep 30, 2021		Dec 31, 2020		Change
Loans, net	$614,117		$576,469		6.53		%	$583,572		$601,934		-3.05		%
Loans held for sale	3,239		1,628		98.96		%	6,462		7,102		-9.01		%
Total securities	194,774		164,922		18.10		%	155,957		93,856		66.17		%
Total deposits	883,069		887,056		-0.45		%	853,829		764,967		11.62		%
Stockholders' equity	48,339		69,429		-30.38		%	68,902		66,732		3.25		%
Total assets	962,570		987,634		-2.54		%	942,631		851,386		10.72		%
Shares outstanding	4,628,657		4,740,657		(112,000		)	4,740,657		4,339,436		401,221
Book value per share	$10.44		$14.65		$(4.21		)	$14.53		$15.38		$(0.85		)

Daily averages:	Three months ending Sep 30, 2022		Three months ending Sep 30, 2021		Change		Year to date Sep 30, 2022		Year to date Sep 30, 2021		Change
Loans	$615,208		$587,129		4.78	%	$600,286		$598,135		0.36	%
Loans held for sale	4,217		5,638		-25.20	%	3,978		5,777		-31.14	%
Total securities	230,986		142,670		61.90	%	220,863		118,662		86.13	%
Total deposits	885,602		843,452		5.00	%	895,274		820,517		9.11	%
Stockholders' equity	52,451		67,657		-22.48	%	60,603		66,183		-8.43	%
Interest earning assets	916,798		869,899		5.39	%	927,482		847,730		9.41	%
Interest bearing liabilities	752,909		692,709		8.69	%	749,545		669,535		11.95	%
Total assets	968,985		930,846		4.10	%	986,867		906,389		8.88	%

Financial Ratios:	Three months ending Sep 30, 2022		Three months ending Sep 30, 2021		Change		Year to date Sep 30, 2022		Year to date Sep 30, 2021		Change
Return on average assets	1.05	%	0.80	%	0.25		0.95	%	0.85	%	0.10
Return on average equity	19.47	%	11.03	%	8.44		15.45	%	11.58	%	3.87
Net interest margin	3.43	%	3.11	%	0.32		3.09	%	3.20	%	(0.11	)
Efficiency ratio	75.54	%	75.67	%	(0.13	)	75.53	%	74.95	%	0.58
Average equity to average assets	5.41	%	7.27	%	(1.86	)	6.14	%	7.30	%	(1.16	)

Allowance for loan losses:	Three months ending Sep 30, 2022			Three months ending Sep 30, 2021			Change		Year to date Sep 30, 2022			Year to date Sep 30, 2021			Change
Beginning balance	$6,616			$7,212			-8.26	%	$6,915			$7,156			-3.37	%
Recovery of loan losses	(300		)	-			N/A		(900		)	-			N/A
Charge-offs	(1		)	(16		)	-93.75	%	(10		)	(80		)	-87.50	%
Recoveries	79			80			-1.25	%	389			200			94.50	%
Ending balance	6,394			7,276			-12.12	%	6,394			7,276			-12.12	%

Nonperforming assets:	Sep 30, 2022		Dec 31, 2021		Change		Sep 30, 2021		Dec 31, 2020		Change
Total nonperforming loans	$788		$954		-17.40	%	$1,904		$2,064		-7.75	%
Other real estate owned	566		761		-25.62	%	806		1,105		-27.06	%
Total nonperforming assets	1,354		1,715		-21.05	%	2,710		3,169		-14.48	%
Troubled debt restructurings - (performing portion)	431		372		15.86	%	376		392		-4.08	%

Asset quality ratios:	Sep 30, 2022		Dec 31, 2021		Change		Sep 30, 2021		Dec 31, 2020		Change
Nonperforming loans to total loans	0.13	%	0.16	%	(0.03	)	0.32	%	0.34	%	(0.02	)
Allowance for loan losses to total loans	1.03	%	1.19	%	(0.16	)	1.23	%	1.17	%	0.06
Allowance for loan losses to nonperforming loans	811.42	%	724.84	%	86.58		382.14	%	346.71	%	35.43

FAQ

What were Bank of the James' earnings for Q3 2022?

Bank of the James reported record earnings of $2.57 million for Q3 2022.

How much did the quarterly dividend increase for BOTJ?

The quarterly dividend was increased by 14% to $0.08 per share.

What was the net interest income growth for BOTJ in Q3 2022?

Net interest income for Q3 2022 grew by 16% compared to the previous year.

What impact did rising interest rates have on BOTJ's business?

Rising interest rates slowed commercial lending activity for Bank of the James.