Latest news with #commerciallending
Forbes
4 days ago
- Business
- Forbes
Voice AI Is Changing How We Do Business, Starting With Loans
Putting all the pieces together to secure a loan isn't easy. Back when I was a mortgage broker, much of my day was spent tracking down bank statements, W-2 pay stubs, and countless other pieces of paperwork. I kept all this in manila folders for my clients, alternating my time between sales prospecting and battling underwriters to get my loans through to closing. The Loan Bottleneck Challenge The many hours involved in pushing a mortgage across the finish line were daunting, the work tedious and dull, both for me and my clients. And if that's true for home loans, the problem is exponentially worse in commercial lending. Loqate, a global location data and address verification firm, cited a recent related statistic in its report from Forrester that '54% of people filling out financial application forms abandon them prior to completion, and on top of this, a recent study by SaleCycle saw financial abandonments reach an average of 76%.' But here's what shocked me: for commercial loans, that number can jump even higher. All those abandoned loans represent entrepreneurs' dreams deferred, expansions delayed, equipment un-purchased, growth stalled. By the same token, they hint at money that's flowing into neither the pockets of loan officers nor the brokerages employing them. An AI That Talks You Through the Loan Process? Enter: a conversational AI meant to streamline this fractured—if not broken—process. Two young entrepreneurs, Yash Goenka and Rohan Datta, are behind the artificially intelligent platform. Their brainchild recently landed them in the Y Combinator accelerator program where they join the prestigious ranks of other startups, including Airbnb, Dropbox, Stripe, DoorDash, and more. That's also the same valuable network that a guy you may have heard named Sam Altman once ran as its president. I had the chance to speak to Goenka and Datta about why Voice AI is upending how we do business, starting with loans. "We call abandoned applicants within minutes while they're still at their computer, still motivated," says Goenka. "Our AI will spend 45 minutes explaining what a debt service coverage ratio is without any frustration. Try finding a human who'll do that cheerfully on the hundredth call." Instead of relying on a text bot with canned answers, their system automates the whole loan workflow. The power of talking AI agents assists borrowers from the moment they first fill out a form to when their completed application lands on an underwriter's desk. 'Think of it as your own 24/7 sales development rep, loan processor, and AI assistant, rolled into one,' Datta adds. Why Voice AI is Different Before delving into how works a bit more, let's discuss the phenomenon that is Voice AI. You've most likely had the annoying experience of dealing with what I will call 'dumb' automated phone agents. I even had one today that left me shouting into the receiver, 'Just connect me with a human!' Voice AI is not that. In May of this year, the Wall Street Journal described the next generation version this way: 'Automated voice programs are being upgraded from old-school systems with little or no AI to newer speech-to-text and text-to-speech models combined with large language models. If the technology lives up to its promise, the shift might improve the customer experience at a range of companies and reduce their costs in the process.' "The convergence of three technologies changed everything," Datta explains. "Latency dropped below 500ms—fast enough for natural conversation. LLMs, like ChatGPT, can now maintain context across thirty-minute financial discussions. And voice synthesis became indistinguishable from humans." While that's undoubtedly true, what's more important to this conversation is how voice AI stands to improve operations for tomorrow's companies, starting with lending. Returning to my own experiences as a loan officer, there were two major components to my job: Voice AI, by way of seeks to manage part one, handling the soul-sucking part of working in this business. Beyond pre-qualifying applicants and coordinating the paperwork needed to complete a loan, it also coaxes borrowers along, ensuring less of them prematurely exit the process. If a borrower stalls in the midst of an application, for instance, because they cannot locate their EIN number—or because they simply find the whole thing too frustrating and convoluted to go on—the AI will step in. It will also happen in a more natural way than a text box pinging them with pre-programmed messages. Instead, a (natural-sounding) voice agent will call the borrower back to find out what happened and how to fix it. As you can expect, such handholding, if performed correctly, can lead to higher application completion rates and ultimately, more closed loans, a win-win scenario. It makes sense that the lending industry is embracing such tech. Sophisticated AI seeks to alleviate the slog of paper-pushing to help businesses access the capital they need to grow. "Lending is uniquely perfect for voice AI," Goenka explains. "It's high-stakes enough that people want to talk to someone. Nobody wants to get a business loan through a chatbot. Yet it's also process-driven enough that AI can actually help. There are correct answers to questions like, 'What documents do I need?' AI can be trained to handle these perfectly." It's important to note we're not talking about yesteryear's voice agents. Thanks to AI, they're getting better all the time. Much better. Anecdotally, I have interacted with Voice AIs that sound incredibly human, down to the nuances of person-to-person communication, even the 'ums' and 'uhs' indicating authentic-sounding exchanges. In fact, the only thing that alerted me I was talking to an AI was the unnatural pause it took between responses. Several seconds were often required, taking me out of the moment. This is but a slight hiccup that we can naturally assume will be corrected in short order. The key part of this interaction Goenka and Datta have hit upon is the ease of voice versus text communication. Like it or not, we are no longer a literate nation. People don't read books. Sadly, they don't even read Forbes articles as much as they once did. Therefore, they have little patience with typing their way through complex commercial loan applications asking for financial statements, tax returns, and business projections. They just want someone—anyone—to solve their problem fast so they can get on to their next task. From Loan Officer to Trusted Advisor This represents the real utility behind Voice AI and the reason Silicon Valley, not to mention, Big Business, is betting big on it. Even so, the former loan officer in me can't help but wonder if this job will still exist in five years. According to our young entrepreneurs, the answer is yes. As Goenka explains, 'Just like ATMs didn't get rid of bank tellers, Voice AI will not do away with the all-important human touch. In five years, AI will handle all application intake, document collection, and basic underwriting. Loan officers will shift into more strategic, high-value roles: becoming trusted advisors, closers, and relationship managers.' A few years ago, I might've disagreed with him, so certain I was that AI would gobble up all jobs like the insatiable leviathan pundits warn us about. Not anymore. The fact is people want to do business with people. We like other humans. And we really like being more productive—any way we can. Voice AI is enabling such breakthroughs, leading to more money in the pockets of brokers, more deals for brokerages, more commercial loans, and more prosperity overall. Now, that's a future worth celebrating.
Yahoo
6 days ago
- Business
- Yahoo
First Financial Bank to acquire BankFinancial for $142m
First Financial Bank has reached an agreement to acquire BankFinancial, a Chicago-based financial institution, in an all-stock transaction valued at approximately $142m. Under the terms of the agreement, shareholders of BankFinancial will receive 0.48 shares of First Financial for each share they hold. The boards of directors for both banks have unanimously approved the merger. This acquisition will allow First Financial to expand its operations in the Chicagoland area, where BankFinancial operates 18 financial centres. BankFinancial has more than 100 years of experience in commercial lending and offers a range of financial solutions to businesses and individuals in the greater Chicago region. Following the completion of the acquisition, BankFinancial's consumer and wealth management services, along with selected commercial credit lines, will be integrated into First Financial's existing operations. All employees of BankFinancial will transition to First Financial. BankFinancial chairman, president and CEO Morgan Gasior said: 'First Financial is the ideal choice to help us continue our legacy of delivering exceptional financial solutions, while maintaining a strong commitment to customer care and service to our communities.' This acquisition follows First Financial's recent growth initiatives, including a prior agreement to acquire Westfield Bank in Northeast Ohio and its ongoing expansion into Chicago, Cleveland, and Grand Rapids. First Financial president and CEO Archie Brown said: 'The addition of BankFinancial's retail financial centers enables us to continue our Midwest growth strategy and provides Chicago clients a broader range of banking and specialty solutions to help them meet their financial goals.' The transaction is anticipated to close in the fourth quarter of 2025, pending regulatory approvals and the consent of BankFinancial shareholders. Morgan Stanley is advising First Financial on the financial aspects of the deal, while Keefe, Bruyette & Woods, A Stifel Company, is providing similar services for BankFinancial. Legal counsel for First Financial is being provided by Squire Patton Boggs, while Kirkland & Ellis and Luse Gorman are advising BankFinancial. First Financial Bancorp, headquartered in Cincinnati, Ohio, reported assets of $18.6bn, loans of $11.8bn, and deposits of $14.4bn as of 30 June 2025. The company operates 128 full-service banking centres across Ohio, Indiana, Kentucky, and Illinois. "First Financial Bank to acquire BankFinancial for $142m" was originally created and published by Retail Banker International, a GlobalData owned brand.
Globe and Mail
07-08-2025
- Business
- Globe and Mail
Oak Valley Community Bank Announces Commercial Banking Officer Hiring
OAKDALE, Calif., Aug. 07, 2025 (GLOBE NEWSWIRE) -- Oak Valley Community Bank, a wholly-owned subsidiary of Oak Valley Bancorp (NASDAQ: OVLY), is pleased to announce the addition of Matthew Brown as Vice President, Commercial Banking Officer. Brown will be based out of the bank's upcoming Lodi Branch, which is located at 31 South School Street and is slated to open this fall. Brown has more than 15 years of banking experience, including the past six years as a Business Banking Officer at another local financial institution. In his new role, he will lead commercial lending and business development efforts in the Lodi area, delivering tailored financial solutions and strategic guidance to help local businesses thrive. 'Matt brings a solid track record in business banking and agricultural lending along with a deep understanding of the local community,' said Gary Stephens, Executive Vice President of the Commercial Banking Group. 'His ability to connect with business owners and provide thoughtful financial guidance will be a strong asset as we expand our presence in Lodi and support the growth of the region's commercial sector'. Brown holds a bachelor's degree in business management economics from the University of California, Santa Cruz, and graduated with honors from the Graduate School of Banking at Colorado, where he completed an intensive executive banking program. A Lodi resident, Brown is deeply involved in the community. He actively participates in several local organizations, including the Rotary Club of Lodi, First Baptist Church, and serves as an Upward Basketball coach. Brown is also a recent graduate of the Delta Leadership and Leadership Lodi programs. Outside of the office, Brown enjoys spending time with his family, scuba diving, fly fishing, winemaking, and camping in the Sierra Nevada. He also holds an FAA Private Pilot License. Oak Valley Bancorp operates Oak Valley Community Bank & their Eastern Sierra Community Bank division, through which it offers a variety of loan and deposit products to individuals and small businesses. They currently operate through 18 conveniently located branches: Oakdale, Turlock, Stockton, Patterson, Ripon, Escalon, Manteca, Tracy, Sacramento, Roseville, two branches in Sonora, three branches in Modesto, and three branches in the Eastern Sierra division which includes Bridgeport, Mammoth Lakes, and Bishop. The Lodi Branch will be the bank's 19th location. For more information, call 1-866-844-7500 or visit
Yahoo
06-08-2025
- Business
- Yahoo
British lender Metro Bank triples half-year profit on lending pivot, cost cuts
(Reuters) -Britain's Metro Bank posted a more than threefold rise in underlying pre-tax profit for the first half of 2025 compared to the second half of 2024, driven by the lender's cost control measures and renewed focus on corporate and commercial lending. The bank, launched in 2010 as a challenger to Britain's incumbent lenders, has faced a series of setbacks in recent years, including misclassification of loans and the abrupt exit of its founder Vernon Hill in 2019. Although these resulted in mounting losses and regulatory fines, the lender returned to profitability in the second half of last year after shifting its focus to higher-yielding specialist mortgages and commercial lending. For the six months ended June 30, Metro Bank reported an underlying pre-tax profit of 45.1 million pounds ($60 million), more than tripling the 12.8 million pounds posted in the previous six-month period. ($1 = 0.7517 pounds) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
04-08-2025
- Business
- Globe and Mail
Bank of the James Announces Second Quarter, First Half of 2025 Financial Results
LYNCHBURG, Va., Aug. 04, 2025 (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 six month periods ended June 30, 2025. The Bank serves Region 2000 (the greater Lynchburg metropolitan statistical area) and the Blacksburg, Buchanan, Charlottesville, Harrisonburg, Lexington, Nellysford, Roanoke, and Wytheville, Virginia markets. Net income for the three months ended June 30, 2025 was $2.70 million or $0.60 per basic and diluted share compared with $2.15 million or $0.47 per basic and diluted share for the three months ended June 30, 2024. Net income for the six months ended June 30, 2025 was $3.55 million or $0.79 per basic and diluted share compared with $4.34 million or $0.95 per basic and diluted share for the six months ended June 30, 2024. Robert R. Chapman III, CEO of the Bank, commented: 'Our financial results, and particularly the second quarter 2025 performance, demonstrated continued traction in commercial lending, mortgage originations and core deposits. Strong earnings in the second quarter and first half establish a solid base for continuing positive financial performance as we enter the second half of 2025. 'Net interest margin and interest spread have consistently improved during the past year, reflecting a focus on keeping loan yields on pace with the prevailing interest rate environment, controlling interest expense, and managing our level of borrowings. Net interest margin of 3.45% in the second quarter of 2025 was the highest in a number of quarters. 'Maintaining high quality interest-earning assets, as seen in our asset quality ratios, continues to support sound margins and quality earnings. Diligent credit management and monitoring has an important role in maintaining exceptional asset quality. 'Our strategy of generating interest and noninterest income from a variety of sources has provided financial stability and predictable earnings during the past few years, which have been marked by economic challenges and uncertainty. A balanced revenue stream from commercial and retail banking, and fees from sources such as wealth management, cash management services, mortgage loan originations and more have resulted in consistently strong financial performance and cash generation. 'A strong cash position enabled our parent company to achieve a significant milestone in the second quarter as it officially retired approximately $10 million in capital notes. This is expected to reduce our interest expense by approximately $327,000 annually and. in the current interest rate environment, should help lower the overall rate on interest-bearing liabilities. Our financial performance over the years generated the cash position needed to retire this debt, allowing us to avoid refinancing at today's higher interest rates. The Bank continues to be well capitalized, with a Tier 1 leverage ratio of 8.85% at June 30, 2025. 'This debt offering provided capital at an important time for the Company and it was accomplished entirely through a private transaction between the Company and a group of investors. As we retire this debt, we wish to thank the numerous local investors who demonstrated their support for, and confidence in, the Company in a very tangible way. 'The Company continues building value for shareholders, as evidenced by growth in stockholders' equity, retained earnings, and significant growth of book value per share in the second quarter. We remain focused on efficient operations, maintaining superior asset quality, and sustainable growth.' Second Quarter, First Half of 2025 Highlights Net income and earnings per share ('EPS') in the second quarter of 2025 partially reflected a $528,000 recovery of allowance for credit losses. Total interest income rose 6% to $11.64 million in the second quarter of 2025 compared with $10.94 million a year earlier. In the first half of 2025, total interest income was $22.87 million, up 7% from $21.44 million a year earlier. The growth in both periods primarily reflected higher yields on loans, commercial real estate (CRE) growth, and the addition of higher-rate residential mortgages. The average yield earned on loans, including fees, increased meaningfully in both periods of 2025 from the comparable 2024 periods. Net interest income after recovery of credit losses was $8.78 million in the second quarter of 2025, up 22% from a year earlier. In the first half of 2025, net interest income after recovery of credit losses was $16.36 million, up 11% from $14.72 million a year earlier. Interest expense in the second quarter and first half of 2025 declined 12% and 7%, respectively, compared with the second quarter and first half of 2024, respectively, reflecting ongoing rate management and a focus on growing lower cost core deposits. Net interest margin in the second quarter of 2025 rose to 3.45% compared with 3.02% a year earlier and 3.25% in the first quarter of 2025. In the first half of 2025, net interest margin increased to 3.34% compared to 3.02% in the first half of 2024. Interest spread in the second quarter and first half of 2025 increased significantly from the prior year's periods. Total noninterest income of $4.08 million in the second quarter of 2025 and $7.36 million in the first half of 2025 were relatively stable compared with the previous year's periods, primarily reflecting continuing strong contributions from commercial treasury services, residential mortgage origination fee income, and wealth management fee income from PWW. Loans, net of the allowance for credit losses, increased to $649.09 million at June 30, 2025 from $636.55 million at December 31, 2024 and $616.09 million a year earlier. Commercial real estate loans (owner occupied and non-owner occupied) led lending activity, increasing to $355.67 million from $335.53 million at December 31, 2024. Measures of asset quality remained strong, highlighted by a ratio of nonperforming loans to total loans of 0.28% at June 30, 2025, with no other real estate owned (OREO). Total assets were $1.04 billion at June 30, 2025 compared with $979.24 million at December 31, 2024. Total deposits were $910.53 million at June 30, 2025, up from $882.40 million at December 31, 2024, reflecting the Bank's continuing focus on growing core deposits (noninterest bearing demand deposits, NOW, money market and savings). Shareholder value measures included growth in stockholders' equity to $71.67 million at June 30, 2025 from $64.87 million at December 31, 2024, higher retained earnings, and a book value per share of $15.77, up from $14.28 at December 31, 2024. In the second quarter of 2025, the parent company extinguished its issue of approximately $10 million of capital notes, which will have a positive impact on interest expense and the rate on interest-bearing liabilities. On July 12, 2025, the Company's board of directors approved a quarterly dividend of $0.10 per common share to stockholders of record as of September 12, 2025 to be paid on September 26, 2025. Second Quarter, First Half of 2025 Operational Review Net interest income for the second quarter of 2025 was $8.25 million, up 16% from $7.09 million in the second quarter of 2024. In the first half of 2025, net interest income grew 14% to $15.97 million from $14.04 million in the first half of 2024. Total interest income was $11.64 million in the second quarter of 2025 compared with $10.94 million a year earlier. In the first half of 2025, total interest income rose to $22.87 million from $21.44 million in the first half of 2024. The year-over-year increases in both 2025 periods primarily reflected upward rate adjustments to variable rate commercial loans and new loans reflecting the prevailing rate environment. Investment portfolio management and appropriate rate increases on loans continued to contribute to year-over-year growth in the yield on total earning assets, which was 4.86% in the second quarter of 2025 compared with 4.68% a year earlier. In the first half of 2025, the yield on total earning assets was 4.79% compared with 4.62% a year earlier. Total interest expense in the second quarter of 2025 declined 12% to $3.39 million compared with $3.84 million in the second quarter of 2024. In the first half of 2025, total interest expense declined to $6.90 million from $7.40 million in the prior year's first half. Lower interest expense in both periods of 2025 primarily reflected a relatively stable interest rate environment and the Bank's management of rates paid on interest-bearing deposits, including time deposits. A generally stable interest rate environment and the Company's upward adjustments to floating rate commercial loans and rates on originated and retained residential mortgages contributed to gradual margin pressure relief during the past several quarters. In the second quarter of 2025, the net interest margin was 3.45% compared with 3.02% in the second quarter of 2024, while interest spread increased to 3.15% from 2.69% a year earlier. In the first half of 2025, net interest margin was 3.34% and net interest spread was 3.15% compared with 3.04% and 2.68%, respectively, in the first half of 2024. Noninterest income in the second quarter of 2025 was $4.08 million compared with $4.19 million in the second quarter of 2024. Noninterest income in the first half of 2025 was $7.36 million compared with $7.50 million in the first half of 2024. The predominant amount of noninterest income in both periods of 2025 was generated by fees from debit card activity, commercial treasury services, gains on sale of loans held for sale by our mortgage division, and wealth management fees generated by PWW. Noninterest expense in the second quarter of 2025 was $9.46 million compared with $8.74 million a year earlier. In the first half of 2025, noninterest expense was $19.28 million compared with $16.83 million in the first half of 2024. The year-over-year increases primarily reflected consulting fees incurred in negotiating an amendment to the agreement with a major vendor, the addition of revenue-generating employees, new banking facilities in strategic locations, and quarterly accruals of year-end employee compensation. Balance Sheet: Strong Cash Position, High Asset Quality Total assets were $1.04 billion at June 30, 2025 compared with $979.24 million at December 31, 2024. The increase was due primarily to increases in securities available-for-sale, at fair value, and loan growth, primarily commercial real estate loans. Loans, net of allowance for credit losses, were $649.09 at June 30, 2025 compared with $636.55 at December 31, 2024, reflecting growth of commercial real estate loans. Commercial real estate loans (owner-occupied and non-owner occupied, excluding construction loans) totaled $355.68 million at June 30, 2025 compared with $335.53 million at December 31, 2024, reflecting growth from new loans that was partially offset by loan amortizations and payoffs. Of this amount, at June 30, 2025, commercial real estate (non-owner occupied) was $202.15 million and commercial real estate (owner occupied) was $153.53 million. The Bank closely monitors concentrations in these segments and has no commercial real estate loans secured by large office buildings in large metropolitan city centers. Commercial construction/land loans were $10.68 million, declining from $11.54 million at March 31, 2025 and $23.88 million at December 31, 2024 levels as projects concluded. Residential construction/land loans at June 30, 2025 were $29.04 million up from $26.15 million at December 31, 2024, reflecting continued home building strength and activity in several markets. Commercial and industrial loans were $70.51 million at June 30, 2025 compared to $66.42 million at December 31, 2024. Residential mortgage loans that the Company intends to keep on the balance sheet totaled $108.88 million at June 30, 2025, down slightly from $111.65 million at December 31, 2024. Growth of these retained mortgages has been minimal, as the Bank has continued to focus on selling the majority of originated mortgage loans to the secondary market. Consumer loans (open-end and closed-end) totaled $80.62 million, compared with $78.31 million at December 31, 2024, and remained relatively stable year-over-year. Ongoing high asset quality continues to have a positive impact on the Company's financial performance. The ratio of nonperforming loans to total loans at June 30, 2025 was 0.28% compared with 0.25% at December 31, 2024. High asset quality was also reflected in the allowance for credit losses for loans to total loans, which declined to 0.96% at June 30, 2025 from 1.09% at December 31, 2024. Total nonperforming loans were $1.85 million at June 30, 2025 compared with $1.64 million at December 31, 2024. As a result of having no OREO, total nonperforming assets were the same as total nonperforming loans. The Tier 1 leverage ratio at the Bank level was 8.85% at June 30, 2025, reflecting a well-capitalized institution. Total deposits were $910.53 million at June 30, 2025 compared with $882.40 million at December 31, 2024. Core deposits (noninterest bearing demand deposits, NOW, money market and savings) were $681.36 million compared with $651.90 million at December 31, 2024. Time deposits were stable, reflecting the Bank's focus on growing and retaining lower-cost core deposits. At June 30, 2025 and December 31, 2024, the Bank had no brokered deposits. Key measures of shareholder value continued to trend positively. Stockholders' equity rose to $71.67 million at June 30, 2025 from $64.87 million at December 31, 2024. Retained earnings increased to $45.44 million at June 30, 2025 from $42.80 million at December 31, 2024. Book value per share rose to $15.77 at June 30, 2025 from $14.28 at December 31, 2024, and continued to reflect quarterly fluctuations in required fair market valuations of the Company's available-for-sale investment portfolio. Interest rate fluctuations result in adjustments to the fair value in the Company's available-for-sale securities portfolio (known as 'mark-to-market'), which are reflected in accumulated other comprehensive loss. These mark-to-market losses are excluded when calculating the Bank's regulatory capital ratios. The available-for-sale securities portfolio is composed primarily of securities with explicit or implicit government guarantees, including U.S. Treasuries and U.S. agency obligations, and other highly rated debt instruments. 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. Management continues to diligently monitor the creditworthiness of the issuers of the debt instruments within its securities portfolio. 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, Buchanan, Charlottesville, Forest, Harrisonburg, Lexington, Lynchburg, Madison Heights, Nellysford, 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 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 date 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 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. (unaudited) Assets June 30, 2025 December 31, 2024 Cash and due from banks $ 22,587 $ 23,287 Federal funds sold 55,320 50,022 Total cash and cash equivalents 77,907 73,309 Securities held-to-maturity, at amortized cost 3,598 3,606 Securities available-for-sale, at fair value 196,585 187,916 Restricted stock, at cost 1,828 1,821 Loans, net of allowance for credit losses of $6,308 as of June 30, 2025 and $7,044 as of December 31, 2024 649,089 636,552 Loans held for sale 4,226 3,616 Premises and equipment, net 19,044 19,313 Interest receivable 3,148 3,065 Cash value - bank owned life insurance 23,285 22,907 Customer relationship Intangible 6,445 6,725 Goodwill 2,054 2,054 Deferred tax asset, net 7,774 8,936 Other assets 9,259 9,424 Total assets $ 1,004,242 $ 979,244 Liabilities and Stockholders' Equity Deposits Noninterest bearing demand $ 137,801 $ 129,692 NOW, money market and savings 543,555 522,208 Time 229,171 230,504 Total deposits 910,527 882,404 Capital notes, net - 10,048 Other borrowings 8,992 9,300 Income taxes payable 310 86 Interest payable 856 722 Other liabilities 11,892 11,819 Total liabilities $ 932,577 $ 914,379 Stockholders' equity Common stock $2.14 par value; authorized 10,000,000 shares; issued and outstanding 4,543,338 as of June 30, 2025 and December 31, 2024 9,723 9,723 Additional paid-in-capital 35,253 35,253 Accumulated other comprehensive loss (18,753) (22,915) Retained earnings 45,442 42,804 Total stockholders' equity $ 71,665 $ 64,865 Total liabilities and stockholders' equity $ 1,004,242 $ 979,244 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 Six Months Ended June 30, Ended June 30, Interest Income 2025 2024 2025 2024 Loans $ 9,341 $ 8,347 $ 18,247 $ 16,371 Securities US Government and agency obligations 548 361 1,002 699 Mortgage backed securities 377 723 764 1,532 Municipals 354 307 683 611 Dividends 35 35 48 47 Corporates 136 136 271 271 Interest bearing deposits 127 192 250 325 Federal Funds sold 720 834 1,607 1,588 Total interest income 11,638 10,935 22,872 21,444 Interest Expense Deposits NOW, money market savings 1,258 1,383 2,506 2,658 Time Deposits 1,945 2,266 4,024 4,356 Finance leases 17 20 34 40 Other borrowings 87 94 176 186 Capital notes 81 81 163 163 Total interest expense 3,388 3,844 6,903 7,403 Net interest income 8,250 7,091 15,969 14,041 Recovery of credit losses (528) (123) (391) (676) Net interest income after recovery of credit losses 8,778 7,214 16,360 14,717 Noninterest income Gains on sale of loans held for sale 1,589 1,273 2,426 2,200 Service charges, fees and commissions 975 986 1,956 1,939 Wealth management fees 1,300 1,176 2,555 2,339 Life insurance income 190 183 378 342 Other 21 533 43 638 Gain on sales of available-for-sale securities - 40 - 40 Total noninterest income 4,075 4,191 7,358 7,498 Noninterest expenses Salaries and employee benefits 5,357 4,892 10,134 9,337 Occupancy 497 486 1,067 979 Equipment 654 632 1,324 1,239 Supplies 168 121 310 266 Professional, data processing, and other outside expense 1,537 1,443 4,072 2,995 Marketing 237 231 435 261 Credit expense 263 234 449 422 FDIC insurance expense 120 126 262 235 Amortization of intangibles 140 140 280 280 Other 482 434 948 813 Total noninterest expenses 9,455 8,739 19,281 16,827 Income before income taxes 3,398 2,666 4,437 5,388 Income tax expense 694 518 891 1,053 Net Income $ 2,704 $ 2,148 $ 3,546 $ 4,335 Weighted average shares outstanding - basic 4,543,338 4,543,338 4,543,338 4,543,338 Weighted average shares outstanding - diluted 4,543,338 4,543,338 4,543,338 4,543,338 Net income per common share - basic $ 0.60 $ 0.47 $ 0.79 $ 0.95 Net income per common share - diluted $ 0.60 $ 0.47 $ 0.79 $ 0.95 Bank of the James Financial Group, Inc. and Subsidiaries Dollar amounts in thousands, except per share data unaudited Selected Data: Three months ending Jun 30, 2025 Three months ending Jun 30, 2024 Change Year to date Jun 30, 2025 Year to date Jun 30, 2024 Change Interest income $ 11,638 $ 10,935 6.43 % $ 22,872 $ 21,444 6.66 % Interest expense 3,388 3,844 -11.86 % 6,903 7,403 -6.75 % Net interest income 8,250 7,091 16.34 % 15,969 14,041 13.73 % Provision for (recovery of) credit losses (528) (123) 329.27 % (391) (676) -42.16 % Noninterest income 4,075 4,191 -2.77 % 7,358 7,498 -1.87 % Noninterest expense 9,455 8,739 8.19 % 19,281 16,827 14.58 % Income taxes 694 518 33.98 % 891 1,053 -15.38 % Net income 2,704 2,148 25.88 % 3,546 4,335 -18.20 % Weighted average shares outstanding - basic 4,543,338 4,543,338 - 4,543,338 4,543,338 - Weighted average shares outstanding - diluted 4,543,338 4,543,338 - 4,543,338 4,543,338 - Basic net income per share $ 0.60 $ 0.47 $ 0.13 $ 0.79 $ 0.95 $ (0.16) Fully diluted net income per share $ 0.60 $ 0.47 $ 0.13 $ 0.79 $ 0.95 $ (0.16) Balance Sheet at period end: Jun 30, 2025 Dec 31, 2024 Change Jun 30, 2024 Dec 31, 2023 Change Loans, net $ 649,089 $ 636,552 1.97 % $ 616,088 $ 601,921 2.35 % Loans held for sale 4,226 3,616 16.87 % 4,835 1,258 284.34 % Total securities 200,183 191,522 4.52 % 209,791 220,132 -4.70 % Total deposits 910,527 882,404 3.19 % 884,902 878,459 0.73 % Stockholders' equity 71,665 64,865 10.48 % 61,706 60,039 2.78 % Total assets 1,004,242 979,244 2.55 % 978,011 969,371 0.89 % Shares outstanding 4,543,338 4,543,338 - 4,543,338 4,543,338 - Book value per share $ 15.77 $ 14.28 $ 1.49 $ 13.58 $ 13.21 $ 0.37 Daily averages: Three months ending Jun 30, 2025 Three months ending Jun 30, 2024 Change Year to date Jun 30, 2025 Year to date Jun 30, 2024 Change Loans $ 653,758 $ 614,579 6.37 % $ 650,292 $ 611,375 6.37 % Loans held for sale 3,657 4,134 -11.54 % 3,027 3,307 -8.47 % Total securities (book value) 224,411 242,349 -7.40 % 221,625 245,549 -9.74 % Total deposits 920,286 897,749 2.51 % 921,241 891,152 3.38 % Stockholders' equity 68,256 60,197 13.39 % 66,526 60,045 10.79 % Interest earning assets 961,123 941,099 2.13 % 964,062 934,396 3.17 % Interest bearing liabilities 795,621 778,210 2.24 % 798,331 771,969 3.41 % Total assets 1,020,390 994,871 2.57 % 1,020,182 982,441 3.84 % Financial Ratios: Three months ending Jun 30, 2025 Three months ending Jun 30, 2024 Change Year to date Jun 30, 2025 Year to date Jun 30, 2024 Change Return on average assets 1.06 % 0.87 % 0.19 0.70 % 0.89 % (0.19) Return on average equity 15.89 % 14.35 % 1.54 10.81 % 14.60 % (3.79) Net interest margin 3.45 % 3.02 % 0.43 3.34 % 3.02 % 0.32 Efficiency ratio 76.71 % 77.46 % (0.75) 82.66 % 78.12 % 4.54 Average equity to average assets 6.69 % 6.05 % 0.64 6.52 % 6.11 % 0.41 Allowance for credit losses: Three months ending Jun 30, 2025 Three months ending Jun 30, 2024 Change Year to date Jun 30, 2025 Year to date Jun 30, 2024 Change Beginning balance $ 7,022 $ 6,920 1.47 % $ 7,044 $ 7,412 -4.96 % Provision for (recovery of) credit losses* (555) (99) 460.61 % (526) (600) -12.33 % Charge-offs (160) (19) 742.11 % (223) (84) 165.48 % Recoveries 1 149 -99.33 % 13 223 -94.17 % Ending balance 6,308 6,951 -9.25 % 6,308 6,951 -9.25 % * does not include provision for or recovery of unfunded loan commitment liability Nonperforming assets: Jun 30, 2025 Dec 31, 2024 Change Jun 30, 2024 Dec 31, 2023 Change Total nonperforming loans $ 1,846 $ 1,640 12.56 % $ 797 $ 391 103.84 % Total nonperforming assets 1,846 1,640 12.56 % 797 391 103.84 %
