Bank of the James (BOTJ) Reports Q4 EPS of $0.34

Bank of the James (NASDAQ: BOTJ) reported Q4 EPS of $0.34, versus $0.08 reported last year.

Robert R. Chapman III, President and CEO commented: “The Company’s financial performance in 2018 demonstrated strong and balanced contributions from all our retail, commercial, mortgage, and investment and insurance operations. We are achieving our goals for growth supported by a diversity of interest income and noninterest income sources.

“Our core Region 2000 market exhibited strength, which was enhanced in 2018 by an expanded presence in Appomattox, and a new Blacksburg mortgage office that serves the New River Valley market. Accelerating activity resulting from the geographic expansion into Charlottesville, Harrisonburg and Roanoke has enhanced revenue diversity and opened doors to growth opportunities. We are grateful for the outstanding performance by our banking team, which has been the key to driving business and retaining clients. Prudent expense management, continued asset quality, and capital management supported our goal of increasing earnings and building the Company’s value.”

Highlights

• Increased commercial real estate (CRE) and multi-family housing loans led a 6% year-over year growth in loans, net of allowance for loan losses.
• Net interest income before the provision for loan losses increased 12% in the fourth quarter and 12 months of 2018, driven primarily by increased interest generated through loan growth.
• Total noninterest income, including increased fee income from treasury services, and record income from the Company’s insurance and investments business and the Company’s mortgage operations, was up 11% for the 12 months of 2018 compared with the 12 months of 2017.
• Pretax income increased 14% from $1.63 million to $1.86 million in the fourth quarter of 2018 compared to the fourth quarter of 2017. For the year ended December 31, 2018, pretax income was $6.63 million, up 24% from $5.36 million for the year ended December 31, 2017.
• Deposits increased 8% to $612.04 million at December 31, 2018 from $567.49 million at December 31, 2017, led by growth of core deposits (noninterest-bearing demand, NOW, savings and money market accounts). Core deposits comprised 69% of the Company’s total deposits at year-end 2018.
• Total assets rose to a Company record $674.90 million at December 31, 2018.
• The Company maintained strong asset quality, primarily reflecting loan portfolio strength. Total nonperforming loans declined 32% to $2.94 million at year-end 2018 from $4.31 million at year-end 2017, and the ratio of nonperforming loans to total loans improved to 0.55% from 0.87% in 2018 and 2017, respectively.
• Measures of productivity continued to improve, with Return on Average Assets (ROAA) of 0.81% in 2018 versus 0.49% in 2017. Return on Average Equity (ROAE) was 9.74% in 2018, up from 5.64% in 2017.
• Total stockholders’ equity was $55.14 million at December 31, 2018, up from $51.67 million December 31, 2017, and retained earnings rose to $16.52 million from $12.27 million at year-end 2017.
• Based on the results achieved in the fourth quarter of 2018, on January 15, 2019 the Company’s board of directors approved a $0.06 per share dividend payable to stockholders of record on March 8, 2019, to be paid on March 22, 2019.

Chapman continued: “A highlight of 2018 was the Company’s deposit growth, particularly lower-cost core deposits, which enabled us to fund increased lending activity with internal resources and minimal reliance on higher-cost borrowings. In the coming year, we anticipate establishing several offices in selective locations to enhance our deposit gathering capabilities. During the past several years, our past investments in people, technology and facilities have supported productivity and growth reflected in the Company’s 2018 earnings, providing confidence in our strategy of prudent long-term growth.”

Chapman concluded: “We are enthusiastic about the Company’s prospects in the near term. The region’s economy has been stable and generally strong, businesses and nonprofit organizations have been active and growing, and housing markets have ranged from sound to robust. While the banking market remains competitive, we feel our commitment to providing superior service, supported by a range of sophisticated products and capabilities, has established Bank of the James as a leading choice for retail and commercial banking. We look forward to continuing on the path of delivering sound performance and building the Company’s value for customers and shareholders.”

For earnings history and earnings-related data on Bank of the James (BOTJ) click here.

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