LYNCHBURG, Va., April 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 period ended March 31, 2026. The Bank serves Region 2000 (the greater Lynchburg metropolitan statistical area) and the Blacksburg, Buchanan, Charlottesville, Harrisonburg, Lexington, Nellysford, Roanoke, and Wytheville, Virginia markets.
First Quarter 2026 Highlights
- Net income for the first quarter of 2026 was $2.77 million, an increase of $1.93 million from $842,000 in the first quarter of 2025. Earnings per share were $0.61 compared with $0.19 a year earlier. The year-over-year increase reflects higher net interest income, growth in noninterest income, and lower noninterest expense.
- Total assets were $1.06 billion at March 31, 2026, up $49.46 million, or 4.89%, from $1.01 billion at March 31, 2025.
- Loans, net of the allowance for credit losses, were $649.13 million at March 31, 2026, compared with $661.36 million at December 31, 2025.
- Total deposits were $956.55 million at March 31, 2026, compared with $937.13 million at December 31, 2025.
- Net interest income increased 13.15% to $8.73 million in the first quarter of 2026 from $7.72 million in the first quarter of 2025.
- Net interest margin for the three months ended March 31, 2026 was 3.57% compared with 3.25% for the three months ended March 31, 2025.
- Interest expense decreased 11.38% in the first quarter of 2026 to $3.12 million from $3.52 million in the first quarter of 2025, reflecting lower deposit costs and the retirement of capital notes in the second quarter of 2025.
- Efficiency ratio (non-interest expense divided by the sum of net interest income and noninterest income) improved to 73.75% in the first quarter of 2026 from 89.31% in the first quarter of 2025, as revenue growth of 15.40% was paired with a 4.69% decline in noninterest expense.
- Wealth management fees from PWW increased 12.59% to $1.41 million in the first quarter of 2026 from $1.26 million in the first quarter of 2025.
- Stockholders’ equity increased to $81.28 million at March 31, 2026 from $80.05 million at December 31, 2025, an increase of 1.54%. Book value per share rose to $17.89 from $17.62.
- Nonperforming loans were $1.45 million at March 31, 2026, down from $1.70 million at December 31, 2025 and $1.80 million at March 31, 2025. The allowance for credit losses was $6.20 million at March 31, 2026, representing 4.28x coverage of nonperforming loans.
- On April 28, 2026, the Company’s board of directors approved a quarterly dividend of $0.10 per common share to stockholders of record as of May 22, 2026, to be paid on June 5, 2026.
First Quarter 2026 Operational Review
Robert R. Chapman III, CEO of the Bank, commented: “First quarter results were strong, driven by continued efficiency improvements, our investment in front-line teammates, including our commission-based producers, who continue to perform at a high level, as reflected in a lower cost of deposits, higher net interest income, and higher noninterest income. We posted a return on assets above 1% and a return on equity of nearly 14%, maintained strong asset quality, and remained well-capitalized across all measures. In over 26 years, this is our best first quarter.”
Revenue, defined as the sum of net interest income and noninterest income, grew 15.40% year over year, while noninterest expense declined 4.69%. The combination drove the efficiency ratio to 73.75% in the first quarter of 2026, compared with 89.31% in the same period a year ago.
Mike Syrek, President of the Bank, added: “Data processing expense declined $377,000, or 44.2%, as costs normalized under our amended contract with our core provider. On the revenue side, our mortgage division generated $1.20 million in gains on sales of loans held for sale, and Pettyjohn, Wood & White contributed $1.41 million in wealth management fees, up 12.59% year over year.”
Net interest income for the first quarter of 2026 was $8.73 million, up 13.15% from $7.72 million in the first quarter of 2025.
Total interest income was $11.85 million in the first quarter of 2026 compared with $11.23 million a year earlier, reflecting higher yields on loans and securities and growth in average interest-earning assets.
Total interest expense in the first quarter of 2026 declined 11.38% to $3.12 million compared with $3.52 million in the first quarter of 2025. The decline reflected lower rates paid on NOW, money market and savings deposits, and the elimination of capital note interest following the retirement of approximately $10.05 million in capital notes at the end of the second quarter of 2025.
Net interest margin rose to 3.57% in the first quarter of 2026 from 3.25% in the first quarter of 2025, as higher asset yields were paired with a lower cost of interest-bearing liabilities.
Noninterest income in the first quarter of 2026 was $3.96 million compared with $3.28 million in the first quarter of 2025, an increase of 20.74%. The year-over-year growth was driven by a $359,000 increase in gains on sale of loans held for sale, reflecting higher origination and sales volumes in the mortgage division; a $158,000 increase in wealth management fees from PWW, driven by growth in assets under management from $886.9 million at March 31, 2025 to $1.01 billion at March 31, 2026; and $131,000 of income from an SBIC fund investment.
Noninterest expense in the first quarter of 2026 was $9.37 million compared with $9.82 million a year earlier, a decrease of 4.69%. Professional and other outside expense declined $913,000, or 54.2%, to $770,000, and data processing expense declined $377,000, or 44.2%, to $475,000. Both reductions are attributable to the Company's core processing contract renegotiation, as consulting fees incurred in connection with the negotiation process were concentrated in the prior year period and the new contract terms resulted in meaningfully lower ongoing data processing costs. These reductions were partially offset by a $725,000 increase in salaries and employee benefits, reflecting market compensation adjustments and higher commission expense associated with increased production volumes, as well as performance-based incentive accruals.
The Company recorded a $146,000 recovery of credit losses in the first quarter of 2026, compared with a $137,000 provision in the first quarter of 2025.
Balance Sheet: Asset Growth
Total assets were $1.06 billion at March 31, 2026 compared with $1.01 billion at March 31, 2025.
Syrek commented: “Total assets reached $1.06 billion at quarter end, and deposits grew 4.92% year over year to $956.55 million. Core deposit balances increased, and time deposits were essentially flat from year end. Credit quality remained sound: nonperforming loans declined to $1.45 million from $1.70 million at year end and $1.80 million a year ago, representing 0.22% of total loans, and the allowance for credit losses was $6.20 million at quarter end.”
Syrek continued, “Several large payoffs and line reductions reduced loan balances and, together with solid deposit growth, provided funds to increase our investment portfolio and improve portfolio yield.”
Loans, net of allowance for credit losses, were $649.13 million at March 31, 2026 compared with $642.39 million at March 31, 2025, an increase of $6.75 million, or 1.05%. The allowance for credit losses was $6.20 million at March 31, 2026 and $7.02 million at March 31, 2025.
Total deposits were $956.55 million at March 31, 2026 compared with $911.68 million at March 31, 2025, an increase of $44.87 million, or 4.92%. Core deposits (noninterest bearing demand deposits, NOW, money market and savings) were $721.66 million at March 31, 2026, and time deposits were $234.89 million.
Stockholders’ equity rose to $81.28 million at March 31, 2026 from $68.35 million at March 31, 2025, an increase of 18.93%. Retained earnings were $52.33 million at March 31, 2026, compared with $50.01 million at December 31, 2025. Book value per share rose to $17.89 at March 31, 2026 from $17.62 at December 31, 2025.
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: 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 data)
2026 December 31,
2025 Cash and due from banks$25,097 $28,538 Federal funds sold 62,894 55,937 Total cash and cash equivalents 87,991 84,475 Securities held-to-maturity (fair value of $3,290 as of March 31, 2026 and $3,315 as of December 31, 2025), net of allowance for credit losses of $0 as of March 31, 2026 and December 31, 2025 3,586 3,590 Securities available-for-sale, at fair value 244,699 214,128 Restricted stock, at cost 1,828 1,828 Loans, net of allowance for credit losses of $6,201 as of March 31, 2026 and $6,450 as of December 31, 2025 649,133 661,357 Loans held for sale 2,877 3,472 Premises and equipment, net 19,167 19,132 Interest receivable 3,200 3,380 Cash value - bank owned life insurance 23,887 23,676 Customer relationship intangible 6,024 6,164 Goodwill 2,054 2,054 Other assets 16,743 15,768 Total assets$1,061,189 $1,039,024 Liabilities and Stockholders’ Equity Deposits Noninterest bearing demand$144,762 $131,456 NOW, money market and savings 576,899 570,345 Time 234,891 235,328 Total deposits 956,552 937,129 Other borrowings 8,729 8,796 Interest payable 1,125 1,167 Other liabilities 13,499 11,884 Total liabilities$979,905 $958,976 Stockholders’ equity Common stock $2.14 par value; authorized 10,000,000 shares; issued and outstanding 4,543,338 as of March 31, 2026 and December 31, 2025$9,723 $9,723 Additional paid-in-capital 35,253 35,253 Retained earnings 52,328 50,009 Accumulated other comprehensive (loss) (16,020) (14,937)Total stockholders’ equity$81,284 $80,048 Total liabilities and stockholders’ equity$1,061,189 $1,039,024
Bank of the James Financial Group, Inc. and Subsidiaries
Consolidated Statements of Operation
(dollar amounts in thousands, except per share data) (unaudited)
Loans$9,427 $8,906Securities US Government and agency obligations 633 454Mortgage backed securities 450 387Municipals - taxable 398 311Municipals - tax exempt 63 18Dividends 11 13Corporates 145 135Interest bearing deposits 98 123Federal Funds sold 624 887Total interest income 11,849 11,234 Interest Expense Deposits NOW, money market savings 1,028 1,248Time deposits 1,954 2,079Finance leases 14 17Other borrowings 119 89Capital notes - 82Total interest expense 3,115 3,515 Net interest income 8,734 7,719 Provision for (recovery of) credit losses (146) 137 Net interest income after provision for (recovery of) credit losses 8,880 7,582 Noninterest income Gain on sales of loans held for sale 1,196 837Service charges, fees and commissions 994 981Wealth management fees 1,413 1,255Life insurance income 211 188Income from SBIC fund 131 -Other 19 22Total noninterest income 3,964 3,283 Noninterest expenses Salaries and employee benefits 5,500 4,777Occupancy 608 570Equipment 747 670Supplies 160 142Professional and other outside expense 770 1,683Data processing 475 852Marketing 189 198Credit expense 190 186FDIC insurance expense 136 142Amortization of intangibles 140 140Other 450 466Total noninterest expenses 9,365 9,826 Income before income taxes 3,479 1,039 Income tax expense 705 197 Net Income$2,774 $842 Weighted average shares outstanding - basic and diluted 4,543,338 4,543,338 Earnings per common share - basic and diluted$0.61 $0.19
Bank of the James Financial Group, Inc. and Subsidiaries
Dollar amounts in thousands, except per share data
unaudited
ending
Mar 31,
2026Three months
ending
Mar 31,
2025ChangeInterest income$11,849 $11,234 5.47%Interest expense 3,115 3,515 -11.38%Net interest income 8,734 7,719 13.15%Provision for (recovery of) credit losses (146) 137 -206.57%Noninterest income 3,964 3,283 20.74%Noninterest expense 9,365 9,826 -4.69%Income taxes 705 197 257.87%Net income 2,774 842 229.45%Weighted average shares outstanding – basic and diluted 4,543,338 4,543,338 - Earnings per common share – basic and diluted$0.61 $0.19$0.42
2026Dec 31,
2025ChangeMar 31,
2025Dec 31,
2024ChangeLoans, net$649,133$661,357 -1.85%$642,388$636,552 0.92%Loans held for sale 2,877 3,472 -17.14% 4,739 3,616 31.06%Total securities 248,285 217,718 14.04% 196,382 191,522 2.54%Total deposits 956,552 937,129 2.07% 911,683 882,404 3.32%Stockholders’ equity 81,284 80,048 1.54% 68,348 64,865 5.37%Total assets 1,061,189 1,039,024 2.13% 1,011,726 979,244 3.32%Shares outstanding 4,543,338 4,543,338 - 4,543,338 4,543,338 - Book value per share$17.89$17.62$0.27 $15.04$14.28$0.76
ending
Mar 31,
2026Three months
ending
Mar 31,
2025ChangeLoans$663,461$646,7882.58%Loans held for sale 2,979 2,39124.59%Total securities (book value) 241,989 219,55010.22%Total deposits 947,084 922,2072.70%Stockholders’ equity 81,138 64,77825.26%Interest earning assets 994,286 963,6883.18%Interest bearing liabilities 820,760 800,2492.56%Total assets 1,050,981 1,021,7662.86%
ending
Mar 31,
2026Three months
ending
Mar 31,
2025ChangeReturn on average assets1.07%0.33%0.74 Return on average equity13.87%5.27%8.60 Net interest margin3.57%3.25%0.32 Efficiency ratio73.75%89.31%(15.56)Average equity to average assets7.72%6.34%1.38
ending
Mar 31,
2026Three months
ending
Mar 31,
2025ChangeBeginning balance$6,450 $7,044 -8.43%Provision for (recovery of) credit losses* (91) 29 -413.79%Charge-offs (222) (63)252.38%Recoveries 64 12 433.33%Ending balance 6,201 7,022 -11.69%* does not include provision for or recovery of credit losses related to the Company’s reserve for unfunded loan commitments
2026Dec 31,
2025ChangeMar 31,
2025Dec 31,
2024ChangeTotal nonperforming loans$1,450$1,704-14.91%$1,799$1,6409.70%Other real estate owned - -N/A - -N/ATotal nonperforming assets 1,450 1,704-14.91% 1,799 1,6409.70%
2026Dec 31,
2025ChangeMar 31,
2025Dec 31,
2024ChangeNonperforming loans to total loans0.22%0.26%(0.04)0.28%0.25%0.02 Allowance for credit losses for loans to total loans0.95%0.97%(0.02)1.08%1.09%(0.01)Allowance for credit losses for loans to nonperforming loans427.66%378.52%49.13 390.33%429.50%(39.17)