15:02:00 EDT Fri 30 Oct 2026
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Bank of the James Financial Group Announces Third Quarter of 2026 and First Nine Months of 2026 Financial Results and Declaration of Cash Dividend; Increases Quarterly Cash Dividend by 50%

Bank of the James Financial Group Reports First Nine Months 2026 Net Income of $9.34 Million, $2.05 Per Share

2026-10-30 12:00 ET - News Release

LYNCHBURG, Va., Oct. 30, 2026 (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, 2026. The Bank serves Region 2000 (the greater Lynchburg metropolitan statistical area) and the Blacksburg, Charlottesville, Harrisonburg, Lexington, Nellysford, Roanoke, and Wytheville, Virginia markets.

Third Quarter 2026 and Year-to-Date 2026 Highlights

  • Net income for the third quarter of 2026 was $3.32 million, an increase of $570,000 from $2.75 million in the third quarter of 2025. Earnings per share were $0.73 compared with $0.61 per share one year earlier. Net income for the first nine months of 2026 was $9.34 million, an increase of $3.04 million from $6.30 million in the first nine months of 2025. Earnings per share were $2.05 compared with $1.39 per share one year earlier. The year-over-year increases reflect higher net interest income and growth in noninterest income.
  • Total assets were $1.065 billion at September 30, 2026, compared with $1.039 billion at December 31, 2025, and $1.020 billion at September 30, 2025.
  • Net interest income after provision for (recovery of) credit losses increased approximately 18% to $9.69 million in the third quarter of 2026 from $8.21 million in the third quarter of 2025, and increased 11.80% to $27.47 million in the first nine months of 2026 from $24.57 million in the first nine months of 2025. The Company recorded a total provision for credit losses of $35,000 for the third quarter and $239,000 for the first nine months of 2026. The provision for credit losses on loans was $26,000 and $344,000, respectively.
  • Net interest margin (tax-equivalent) was 3.81% for the third quarter of 2026 compared with 3.44% for the third quarter of 2025, and 3.70% for the first nine months of 2026 compared with 3.37% for the first nine months of 2025.  
  • Interest expense decreased 8.90% to $3.16 million in the third quarter of 2026 from $3.47 million in the third quarter of 2025, and decreased 10.26% to $9.31 million in the first nine months of 2026 from $10.37 million in the first nine months of 2025, reflecting lower deposit costs and, for the nine-month comparison only, the retirement of approximately $10 million in capital notes in the second quarter of 2025.
  • Noninterest income increased 0.24% to $4.18 million in the third quarter of 2026 from $4.17 million in the third quarter of 2025, and increased 9.47% to $12.62 million in the first nine months of 2026 from $11.53 million in the first nine months of 2025.
  • Noninterest expense increased 5.85% to $9.70 million in the third quarter of 2026 from $9.16 million in the third quarter of 2025, and decreased 0.24% to $28.37 million in the first nine months of 2026 from $28.44 million in the first nine months of 2025.
  • Wealth management fees from PWW increased 10.43% to $1.50 million in the third quarter of 2026 from $1.36 million in the third quarter of 2025, and increased 11.90% to $4.38 million in the first nine months of 2026 from $3.92 million in the first nine months of 2025.
  • The efficiency ratio (noninterest expense divided by the sum of net interest income and noninterest income) improved to 69.76% in the third quarter of 2026 from 73.46% in the third quarter of 2025, and to 70.35% in the first nine months of 2026 from 79.45% in the first nine months of 2025.
  • Loans, net of the allowance for credit losses, were $694.03 million at September 30, 2026, compared with $686.08 million at June 30, 2026, $661.36 million at December 31, 2025, and $653.29 million at September 30, 2025.
  • Total deposits were $963.60 million at September 30, 2026, compared with $937.13 million at December 31, 2025, and $919.80 million at September 30, 2025.
  • Nonperforming loans were $548,000 at September 30, 2026, down from $1.09 million at June 30, 2026, and from $1.70 million at December 31, 2025. The allowance for credit losses was $6.55 million at September 30, 2026, compared with $6.45 million at December 31, 2025, and represented 1,195.99% coverage of nonperforming loans, compared with 378.52% at December 31, 2025.   The decrease in nonperforming loans was due primarily to the return of selected non-accrual relationships to accrual status.
  • Stockholders’ equity decreased to $78.45 million at September 30, 2026, from $80.05 million at December 31, 2025, a decrease of 2.00%. Book value per share decreased to $17.27 from $17.62. Retained earnings increased $7.97 million, as year-to-date net income of $9.34 million was partially offset by dividends paid. This was more than offset by a $9.57 million increase in accumulated other comprehensive loss (AOCI), net of tax, to $24.51 million from $14.94 million at December 31, 2025, reflecting unrealized losses on the Company’s available-for-sale securities portfolio resulting from the increase in market interest rates since December 31, 2025, particularly during the third quarter.
  • On October 27, 2026, the Company’s board of directors approved a quarterly dividend of $0.15 per common share to stockholders of record as of November 20, 2026, to be paid on December 4, 2026.   This is an increase of $0.05 per common share, or 50%, from the dividend declared in July 2026.

Commentary from Executive Management

Robert R. Chapman III, CEO of the Bank, commented: “Bank of the James Financial Group once again produced record quarterly profits during the third quarter, perpetuating the momentum which our corporation has generated thus far during 2026. Our team continues to do an outstanding job of serving our customers, and we appreciate the trust which our clients have placed in our organization.     

“We are also very pleased to announce a 50% increase in our quarterly cash dividend from $0.10 per share to $0.15 per share.   This is a well-deserved enhancement for our many loyal shareholders in appreciation for their participation in the Company’s journey over the past 27 years.”

Mike Syrek, President of the Bank, added: “Bank of the James’ loan portfolio and its deposit portfolio each reached all-time highs during the third quarter. It is especially notable that the net loan portfolio increased by $7.95 million during the quarter despite the repayment of one $10.07 million loan. These milestone achievements are a testament to the hard work of the entire team, not just this year but over the course of many years. We will continue to focus upon building relationships with our clients on both the loan and deposit fronts.”

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 serves customers in Virginia from offices located in Altavista, Amherst, Appomattox, Bedford, Blacksburg, 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: 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 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: Eric J. Sorenson, Jr., Executive Vice President and Chief Financial Officer of the Bank, (434) 846-2000.

FINANCIAL RESULTS FOLLOW

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

 (unaudited) (audited)
Assets9/30/2026 12/31/2025
    
Cash and due from banks$20,706  $28,538 
Federal funds sold 41,049   55,937 
Total cash and cash equivalents 61,755   84,475 
    
Securities held-to-maturity (fair value of $3,114 as of September 30, 2026 and $3,315 as of December 31, 2025), net of allowance for credit losses of $0 as of September 30, 2026 and December 31, 2025 3,577   3,590 
Securities available-for-sale, at fair value 225,490   214,128 
Restricted stock, at cost 1,872   1,828 
Loans, net of allowance for credit losses of $6,554 as of September 30, 2026 and $6,450 as of December 31, 2025 694,033   661,357 
Loans held for sale 2,674   3,472 
Premises and equipment, net 18,587   19,132 
Interest receivable 3,286   3,380 
Cash value - bank owned life insurance 24,319   23,676 
Customer relationship intangible 5,744   6,164 
Goodwill 2,054   2,054 
Other real estate owned 192   - 
Other assets 21,000   15,768 
Total assets$1,064,583  $1,039,024 
    
Liabilities and Stockholders' Equity   
    
Deposits   
Noninterest bearing demand$150,251  $131,456 
NOW, money market and savings 564,419   570,345 
Time 248,925   235,328 
Total deposits 963,595   937,129 
    
Other borrowings 8,606   8,796 
Interest payable 1,193   1,167 
Other liabilities 12,742   11,884 
Total liabilities$986,136  $958,976 
    
Stockholders' equity   
Common stock $2.14 par value; authorized 10,000,000 shares; issued and outstanding 4,543,338 as of September 30, 2026 and December 31, 2025 9,723   9,723 
Additional paid-in capital 35,253   35,253 
Retained earnings 57,982   50,009 
Accumulated other comprehensive loss (24,511)  (14,937)
Total stockholders' equity$78,447  $80,048 
    
Total liabilities and stockholders' equity$1,064,583  $1,039,024 
        


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 Ended For the Nine Months Ended
 September 30, September 30,
Interest Income 2026  2025  2026  2025 
Loans$10,432 $9,492 $29,596 $27,739 
Securities       
US Government and agency obligations 595  540  1,847  1,542 
Mortgage backed securities 725  386  1,916  1,150 
Municipals - taxable 427  355  1,227  996 
Municipals - tax exempt 70  40  195  82 
Dividends 16  15  61  63 
Corporates 129  136  426  407 
Interest bearing deposits 78  150  303  400 
Federal funds sold 411  657  1,448  2,264 
Total interest income 12,883  11,771  37,019  34,643 
        
Interest Expense       
NOW, money market and savings$976 $1,273 $3,003 $3,779 
Time deposits 1,949  2,114  5,796  6,138 
Finance leases 13  16  41  50 
Other borrowings 224  68  470  244 
Capital notes -  -  -  163 
Total interest expense 3,162  3,471  9,310  10,374 
        
Net interest income 9,721  8,300  27,709  24,269 
        
Provision for (recovery of) credit losses 35  91  239  (300)
        
Net interest income after provision for (recovery of) credit losses 9,686  8,209  27,470  24,569 
        
Noninterest income       
Gains on sale of loans held for sale$1,306 $1,242 $4,031 $3,668 
Service charges, fees and commissions 1,089  1,046  3,232  3,002 
Wealth management fees 1,504  1,362  4,383  3,917 
Life insurance income 218  195  643  573 
Income from small business investment company 28  278  229  278 
Gains on sales and calls of securities -  27  1  27 
Other 34  19  100  62 
Total noninterest income 4,179  4,169  12,619  11,527 
        
Noninterest expenses       
Salaries and employee benefits 5,632  5,516  16,642  15,650 
Occupancy 551  523  1,682  1,590 
Equipment 755  697  2,208  2,021 
Supplies 205  153  497  463 
Professional and other outside expense 746  725  2,272  3,194 
Data processing 543  381  1,537  1,984 
Marketing 227  249  674  684 
Loan related expense 227  216  676  665 
FDIC insurance expense 126  132  380  394 
Amortization of intangibles 140  140  420  420 
Other 544  428  1,384  1,376 
Total noninterest expenses 9,696  9,160  28,372  28,441 
        
Income before income taxes 4,169  3,218  11,717  7,655 
        
Income tax expense 848  466  2,382  1,357 
        
Net Income$3,321 $2,752 $9,335 $6,298 
        
Weighted average shares outstanding - basic and diluted 4,543,338  4,543,338  4,543,338  4,543,338 
        
Net income per common share - basic and diluted$0.73 $0.61 $2.05 $1.39 
             

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,
2026
Three
months
ending
Sep 30,
2025
ChangeNine Months
ending
Sep 30,
2026
Nine Months
ending
Sep 30,
2025
Change
Interest income$12,883$11,771 9.45%$37,019$34,643  6.86%
Interest expense 3,162 3,471 -8.90% 9,310 10,374  -10.26%
Net interest income 9,721 8,300 17.12% 27,709 24,269  14.17%
Provision for (recovery of) credit losses 35 91 -61.54% 239 (300) -179.67%
Noninterest income 4,179 4,169 0.24% 12,619 11,527  9.47%
Noninterest expense 9,696 9,160 5.85% 28,372 28,441  -0.24%
Income taxes 848 466 81.97% 2,382 1,357  75.53%
Net income 3,321 2,752 20.68% 9,335 6,298  48.22%
Weighted average shares outstanding - basic and diluted 4,543,338 4,543,338 -  4,543,338 4,543,338  - 
Basic and diluted net income per share$0.73$0.61$0.12 $2.05$1.39 $0.66 
                


Balance Sheet at
period end:
Sep 30,
2026
Dec 31,
2025
ChangeSep 30,
2025
Dec 31,
2024
Change
Loans, net$694,033$661,357 4.94%$653,288$636,552 2.63%
Loans held for sale 2,674 3,472 -22.98% 3,766 3,616 4.15%
Total securities 229,067 217,718 5.21% 206,100 191,522 7.61%
Total deposits 963,595 937,129 2.82% 919,796 882,404 4.24%
Stockholders' equity 78,447 80,048 -2.00% 76,972 64,865 18.66%
Total assets 1,064,583 1,039,024 2.46% 1,020,125 979,244 4.17%
Shares outstanding 4,543,338 4,543,338 -  4,543,338 4,543,338 - 
Book value per share$17.27$17.62$(0.35)$16.94$14.28$2.66 
               


Daily averages:Three
months
ending
Sep 30,
2026
Three
months
ending
Sep 30,
2025
ChangeYear to
date
ending
Sep 30,
2026
Year to
date
ending
Sep 30,
2025
Change
Loans$691,133$657,0285.19%$675,928$652,5623.58%
Loans held for sale 3,361 3,01111.62% 3,441 3,02213.86%
Total securities (book value) 262,122 224,95816.52% 256,857 223,00115.18%
Total deposits 960,411 922,2704.14% 953,575 921,5883.47%
Stockholders' equity 84,702 71,64118.23% 82,785 68,25021.30%
Interest earning assets 1,012,880 959,4425.57% 1,003,299 961,4114.36%
Interest bearing liabilities 827,519 794,9314.10% 822,186 796,9143.17%
Total assets 1,067,582 1,017,8724.88% 1,059,183 1,018,3894.01%
             


Financial Ratios:Three
months
ending
Sep 30,
2026
Three
months
ending
Sep 30,
2025
ChangeYear to
date
ending
Sep 30,
2026
Year to
date
ending
Sep 30,
2025
Change
Return on average assets1.23%1.07%0.161.18%0.83%0.35
Return on average equity15.56%15.24%0.3215.08%12.34%2.74
Net interest margin (tax-equivalent)3.81%3.44%0.373.70%3.37%0.33
Efficiency ratio69.76%73.46%-3.7070.35%79.45%-9.10
Average equity to average assets7.93%7.04%0.897.82%6.70%1.12
           


Allowance for credit losses:Three
months
ending
Sep 30,
2026
Three
months
ending
Sep 30,
2025
ChangeYear to
date
ending
Sep 30,
2026
Year to
date
ending
Sep 30,
2025
Change
Beginning balance$6,597 $6,308 4.58%$6,450 $7,044 -8.43%
Provision for (recovery of) credit losses* 26  9 188.89% 344  (518)-166.41%
Charge-offs (80) (21)280.95% (392) (244)60.66%
Recoveries 11  2 450.00% 152  16 850.00%
Ending balance 6,554  6,298 4.06% 6,554  6,298 4.06%
* does not include provision for or recovery of unfunded loan commitment liability
 


Nonperforming assets:Sep 30,
2026
Dec 31,
2025
ChangeSep 30,
2025
Dec 31,
2024
Change
Total nonperforming loans$548$1,704-67.84%$1,895$1,64015.55%
Other real estate owned 192 -N/A - -N/A
       


Asset quality ratios:2026 2025 Change2025 2024 Change
Nonperforming loans to total loans0.08%0.26%-0.180.29%0.25%0.04
Allowance for credit losses for loans to total loans0.94%0.97%-0.030.95%1.09%-0.14
Allowance for credit losses for loans to nonperforming loans1,195.99%378.52%817.47332.35%429.51%-97.16



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