Executive Summary

Q4 2024 EPS was $0.36 and net income was $1.62M, down 23% year over year, primarily due to higher noninterest expense including a $0.534M one-time consultant fee tied to a new card processor contract; management expects up to $0.438M in incentives and ~$2.1M long-term cost savings from the contract .
Net interest margin expanded sequentially for the second straight quarter to 3.18% (from 3.16% in Q3 and 3.02% in Q2), as loan repricing and stabilized rates supported earning asset yields; NIM was flat year over year at 3.18% .
Noninterest income rose 20% year over year in Q4 to $3.82M, driven by mortgage gains, wealth management (PWW) fees, and treasury/carding activity; full-year noninterest income grew 18% to $15.14M .
Balance sheet trends remain constructive: loans +6% YoY to $636.55M, deposits +0.45% YoY to $882.40M, with NPLs/total loans still low at 0.25% and no OREO; book value per share ended at $14.28 (down from $15.15 at Q3 on AFS marks), and a $0.10 dividend was declared for March 21, 2025 .
Potential stock reaction catalysts: visible NIM stabilization/expansion trajectory and identifiable cost savings from the new card processor contract, alongside sustained low credit losses and diversified fee streams .

What Went Well and What Went Wrong

What Went Well

Sequential NIM improvement for a second quarter to 3.18% (Q4), supported by repricing and stabilized rates; management expects margin expansion to continue in coming quarters .
Robust noninterest income growth: Q4 +20% YoY and FY +18%, with PWW fees at $4.84M in FY and mortgage gains of $4.49M, evidencing diversified revenue streams .
Loan growth and asset quality: loans +6% YoY to $636.55M, CRE +9% YoY to $335.53M; NPLs/loans at just 0.25% and zero OREO, reinforcing disciplined credit underwriting .

Management quote: “Although margins continue to experience pressure, there was net interest margin expansion beginning in the second half of 2024 – a positive trend that we anticipate will continue in coming quarters.” — CEO Robert R. Chapman III .

What Went Wrong

Q4 net income fell 23% YoY to $1.62M as noninterest expenses rose 12.9% YoY, including a one-time $0.534M consultant fee for card processor contract negotiations; efficiency ratio worsened to 82.62% vs 79.64% a year ago .
NIM for the full year declined to 3.11% from 3.29%, and interest spread compressed to 2.78% from 3.06%, reflecting elevated deposit costs despite sequential relief in H2 .
Book value per share ended at $14.28, down from $15.15 at Q3, partly due to quarter-to-quarter AFS valuation marks hitting accumulated other comprehensive loss (AOCI) .

Financial Results

Metric	Q4 2023	Q3 2024	Q4 2024
Net Income ($USD Millions)	$2.108	$1.990	$1.618
Diluted EPS ($USD)	$0.45	$0.44	$0.36
Net Interest Income ($USD Millions)	$7.389	$7.509	$7.686
Noninterest Income ($USD Millions)	$3.178	$3.823	$3.816
Net Interest Margin (%)	3.18%	3.16%	3.18%
Efficiency Ratio (%)	79.64%	77.44%	82.62%

Segment/KPI breakdown:

KPI	Q4 2023	Q3 2024	Q4 2024
Loans, Net ($USD Millions)	$601.92	$627.11	$636.55
Deposits ($USD Millions)	$878.46	$907.61	$882.40
Total Assets ($USD Millions)	$969.37	$1,008.06	$979.24
NPLs / Total Loans (%)	0.06%	0.20%	0.25%
Book Value per Share ($)	$13.21	$15.15	$14.28

Loan portfolio composition (totals by category):

Loan Category ($USD Millions)	Dec 31, 2023	Sep 30, 2024	Dec 31, 2024
Commercial Real Estate (Total)	$306.86	$333.77	$335.53
Construction/Land (Commercial + Residential)	$50.28	$50.00	$50.04
Commercial & Industrial	$65.32	$60.34	$66.42
Residential Mortgage (Retained)	$106.99	$114.99	$113.30
Consumer (Open/Closed)	$76.52	$75.09	$78.31

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Net Interest Margin (directional)	FY2025 outlook	Not provided	“Anticipate continuing margin expansion in coming quarters”	n/a
Card Processor Contract Incentives	Contract term	Not provided	Up to $0.438M incentives; ~$2.1M long-term savings	New
Dividend	Q1 2025 (record 3/7; paid 3/21)	$0.10 (Q4 2024 announced 10/15/24)	$0.10 per share declared 1/21/2025	Maintained

Note: Company did not issue formal quantitative guidance ranges for revenue, EPS, OpEx, OI&E, or tax rate in Q4 materials .

Earnings Call Themes & Trends

No Q4 2024 earnings call transcript was found in the document set; themes below reflect press releases for Q2–Q4 2024.

Topic	Q2 2024 (Jul 26)	Q3 2024 (Oct 25)	Q4 2024 (Jan 31)	Trend
Interest rate environment	Stabilizing rates; margin pressure expected but forecast modest expansion	Anticipated gradual margin/spread improvement; NIM up to 3.16%	NIM expanded to 3.18%; continued expansion anticipated	Improving NIM sequentially
Margins	NIM 3.02%; spread 2.68%	NIM 3.16%; spread 2.81%	NIM 3.18%; FY NIM 3.11% vs 3.29%	Sequential expansion, YoY compression
Deposits	$884.90M; growth focus; new branches	$907.61M; continued growth	$882.40M; mix shift toward time deposits; no brokered	Stable with mix shift
Noninterest income	+22% YoY in Q2; mortgage gains, PWW fees	+19% YoY in Q3; mortgage gains, treasury, PWW	+20% YoY in Q4; FY +18%	Sustained growth
Asset quality	NPL/loans 0.13%; no OREO	NPL/loans 0.20%; no OREO	NPL/loans 0.25%; no OREO	Still strong, modest uptick
Branch expansion	Buchanan (Q2) and Nellysford (Q3) openings	Expansion contributes to deposits	Locations cited supporting deposit growth	Footprint expanding

Management Commentary

CEO: “We began to slow the rate of interest expense increases…there was net interest margin expansion beginning in the second half of 2024 – a positive trend that we anticipate will continue in coming quarters.” .
CEO: “Noninterest income was an important component of earnings…noninterest income in 2024 rose 18% from a year earlier.” .
CFO: “We anticipate continuing gradual margin and spread improvement in future quarters.” (Q3) .
Strategy emphasis: diversification via PWW wealth management, mortgage origination gains, commercial treasury services; continued deposit-building and market expansion (Buchanan, Nellysford) .

Q&A Highlights

No Q4 2024 earnings call transcript or Q&A was available in the document set. Key clarifications from the release:

One-time $0.534M consulting fee in Q4 tied to new card processor contract; Company expects up to $0.438M incentives and ~$2.1M long-term savings, implying positive OpEx trajectory in subsequent periods .
Sequential NIM expansion (3.18% vs 3.16% in Q3) supports margin narrative despite full-year compression; management expects continued improvement .

Estimates Context

Wall Street consensus (S&P Global) for Q4 2024 EPS and revenue was unavailable at the time of request; BOTJ appears thinly covered and our S&P Global request did not return usable data. As a result, we cannot quantify beats/misses versus consensus in Q4 2024.
Given noninterest expense elevation (including the one-time consulting fee), near-term sell-side estimates—where they exist—may need to reflect OpEx normalization and the anticipated card contract incentives/savings, alongside sequential NIM improvement .

Key Takeaways for Investors

Sequential margin recovery is intact: NIM rose to 3.18% in Q4 from 3.16% in Q3 (and 3.02% in Q2), with management guiding to continued improvement as repricing and rate stabilization flow through .
Fee income durability: Noninterest income growth remains strong (Q4 +20% YoY; FY +18%), underpinned by mortgage gains and PWW contribution ($4.84M in FY), diversifying earnings beyond spread revenue .
Credit remains a pillar: NPLs/loans at 0.25% with zero OREO support stable provisioning; allowance/loans at 1.09% provides coverage, aiding predictable earnings quality .
OpEx normalization is a lever: Q4’s one-time $0.534M consultant fee should not recur, and the card processor contract adds identifiable incentives ($0.438M) and ~$2.1M savings over time, helping efficiency .
Balance sheet growth continues: loans +6% YoY to $636.55M and deposits +0.45% YoY to $882.40M, with focused deposit initiatives and footprint expansion supporting funding and liquidity .
Capital and shareholder returns: Book value per share of $14.28 (impacted by AFS marks vs. Q3), equity +8% YoY; dividend maintained at $0.10 (to be paid Mar 21, 2025) .
Near-term trading lens: Watch for confirmation of NIM expansion in Q1/Q2 and signs of OpEx tailwinds from the card contract; steady credit and fee momentum should dampen volatility absent macro rate shocks .

BANK OF THE JAMES FINANCIAL GROUP INC (BOTJ)·Q4 2024 Earnings Summary