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


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Bank of the James Financial Group, Inc.