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) | ||||||
| Assets | 9/30/2026 | 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 | Change | Nine 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 | Change | Sep 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 | Change | Year to date ending Sep 30, 2026 | Year to date ending Sep 30, 2025 | Change | ||||||
| Loans | $ | 691,133 | $ | 657,028 | 5.19 | % | $ | 675,928 | $ | 652,562 | 3.58 | % |
| Loans held for sale | 3,361 | 3,011 | 11.62 | % | 3,441 | 3,022 | 13.86 | % | ||||
| Total securities (book value) | 262,122 | 224,958 | 16.52 | % | 256,857 | 223,001 | 15.18 | % | ||||
| Total deposits | 960,411 | 922,270 | 4.14 | % | 953,575 | 921,588 | 3.47 | % | ||||
| Stockholders' equity | 84,702 | 71,641 | 18.23 | % | 82,785 | 68,250 | 21.30 | % | ||||
| Interest earning assets | 1,012,880 | 959,442 | 5.57 | % | 1,003,299 | 961,411 | 4.36 | % | ||||
| Interest bearing liabilities | 827,519 | 794,931 | 4.10 | % | 822,186 | 796,914 | 3.17 | % | ||||
| Total assets | 1,067,582 | 1,017,872 | 4.88 | % | 1,059,183 | 1,018,389 | 4.01 | % | ||||
| Financial Ratios: | Three months ending Sep 30, 2026 | Three months ending Sep 30, 2025 | Change | Year to date ending Sep 30, 2026 | Year to date ending Sep 30, 2025 | Change | ||||
| Return on average assets | 1.23 | % | 1.07 | % | 0.16 | 1.18 | % | 0.83 | % | 0.35 |
| Return on average equity | 15.56 | % | 15.24 | % | 0.32 | 15.08 | % | 12.34 | % | 2.74 |
| Net interest margin (tax-equivalent) | 3.81 | % | 3.44 | % | 0.37 | 3.70 | % | 3.37 | % | 0.33 |
| Efficiency ratio | 69.76 | % | 73.46 | % | -3.70 | 70.35 | % | 79.45 | % | -9.10 |
| Average equity to average assets | 7.93 | % | 7.04 | % | 0.89 | 7.82 | % | 6.70 | % | 1.12 |
| Allowance for credit losses: | Three months ending Sep 30, 2026 | Three months ending Sep 30, 2025 | Change | Year 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 | Change | Sep 30, 2025 | Dec 31, 2024 | Change | ||||||
| Total nonperforming loans | $ | 548 | $ | 1,704 | -67.84 | % | $ | 1,895 | $ | 1,640 | 15.55 | % |
| Other real estate owned | 192 | - | N/A | - | - | N/A | ||||||
| Asset quality ratios: | 2026 | 2025 | Change | 2025 | 2024 | Change | ||||
| Nonperforming loans to total loans | 0.08 | % | 0.26 | % | -0.18 | 0.29 | % | 0.25 | % | 0.04 |
| Allowance for credit losses for loans to total loans | 0.94 | % | 0.97 | % | -0.03 | 0.95 | % | 1.09 | % | -0.14 |
| Allowance for credit losses for loans to nonperforming loans | 1,195.99 | % | 378.52 | % | 817.47 | 332.35 | % | 429.51 | % | -97.16 |
