Bank of the James Reports First Half 2026 Net Income of $6.01 Million, $1.32 Per Share

LYNCHBURG, Va., July 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 six-month periods ended June 30, 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.

Second Quarter 2026 and First Half 2026 Highlights

Net income for the second quarter of 2026 was $3.24 million, an increase of $0.54 million from $2.70 million in the second quarter of 2025. Earnings per share were $0.71 compared with $0.60 per share one year earlier. Net income for the first half of 2026 was $6.01 million, an increase of $2.47 million from $3.55 million in the first half of 2025. Earnings per share were $1.32 compared with $0.78 per share one year earlier. The year-over-year increases reflect higher net interest income, growth in noninterest income, and lower noninterest expense.
Total assets were $1.041 billion at June 30, 2026, compared with $1.039 billion at December 31, 2025, and $1.004 billion at June 30, 2025.
Net interest income after provision for (recovery of) credit losses increased 1.4% to $8.90 million in the second quarter of 2026 from $8.78 million in the second quarter of 2025, and increased 8.7% to $17.78 million in the first half of 2026 from $16.36 million in the first half of 2025. The Company recorded a total provision for credit losses of $350,000 for the second quarter and $204,000 for the first half of 2026. Excluding reductions in the reserve for unfunded commitments, the provision for credit losses on loans were $410,000 and $318,000, respectively.
Net interest margin (tax-equivalent) was 3.71% for the second quarter of 2026 compared with 3.44% for the second quarter of 2025, and 3.64% for the first half of 2026 compared with 3.34% for the first half of 2025.
Interest expense decreased 10.5% to $3.03 million in the second quarter of 2026 from $3.39 million in the second quarter of 2025, and decreased 10.9% to $6.15 million in the first half of 2026 from $6.90 million in the first half of 2025, reflecting lower deposit costs and the retirement of approximately $10 million in capital notes in the second quarter of 2025. The decline in deposit costs was driven primarily by lower rates on renewing certificates of deposit and continued discipline in the pricing of interest-bearing transaction accounts.
Noninterest income increased 9.8% to $4.48 million in the second quarter of 2026 from $4.08 million in the second quarter of 2025, and increased 14.7% to $8.44 million in the first half of 2026 from $7.36 million in the first half of 2025.
Noninterest expense decreased 1.5% to $9.31 million in the second quarter of 2026 from $9.46 million in the second quarter of 2025, and decreased 3.1% to $18.68 million in the first half of 2026 from $19.28 million in the first half of 2025.
Wealth management fees from PWW increased 12.8% to $1.47 million in the second quarter of 2026 from $1.30 million in the second quarter of 2025, and increased 12.7% to $2.88 million in the first half of 2026 from $2.56 million in the first half of 2025.
The efficiency ratio (noninterest expense divided by the sum of net interest income and noninterest income) improved to 67.82% in the second quarter of 2026 from 76.71% in the second quarter of 2025, and to 70.67% in the first half of 2026 from 82.65% in the first half of 2025.
Loans, net of the allowance for credit losses, were $686.08 million at June 30, 2026, compared with $649.13 million at March 31, 2026, $661.36 million at December 31, 2025, and $649.09 million at June 30, 2025.
Total deposits were $935.18 million at June 30, 2026, compared with $937.13 million at December 31, 2025, and $910.53 million at June 30, 2025.
Nonperforming loans were $1.09 million at June 30, 2026, down from $1.70 million at December 31, 2025. The allowance for credit losses was $6.60 million at June 30, 2026, compared with $6.45 million at December 31, 2025, and represented 6.05x coverage of nonperforming loans, compared with 3.79x at December 31, 2025. The decrease in nonperforming loans was due primarily to the return to accrual status for select relationships.
Stockholders’ equity increased to $83.15 million at June 30, 2026, from $80.05 million at December 31, 2025, an increase of 3.88%. Book value per share rose to $18.30 from $17.62.
On July 28, 2026, the Company’s board of directors approved a quarterly dividend of $0.10 per common share to stockholders of record as of August 21, 2026, to be paid on September 4, 2026.

Commentary from Executive Management

Robert R. Chapman III, CEO of the Bank, commented: “The first half of 2026 produced record results for Bank of the James. Growth in loans and revenue from a variety of sources, along with continued sound asset quality, contributed to this performance. We remain focused on building upon these results during the remainder of 2026.

In addition to our focus on financial performance, we continue to place great importance on serving a broad base of customers across our markets, including individuals and businesses in underserved areas. We are proud of the role the Bank and our employees play in supporting the communities we serve.”

Mike Syrek, President of the Bank, added: “We remain focused on increasing operating efficiency through prudent expense management and thoughtful operational changes. This strategy has been successful, contributing to an improved efficiency ratio, and we continue to identify additional opportunities to operate more effectively while supporting our customers and long-term growth.”

Syrek continued: “Loan growth was robust, with loan balances increasing by nearly $37 million during the second quarter. We do not expect this pace of growth to continue, as quarterly loan activity can vary based on originations, maturities, and repayments. Nevertheless, the current environment presents opportunities to originate attractive, well-structured loans, and we remain focused on pursuing those opportunities while maintaining our disciplined underwriting standards. That same discipline is reflected in our asset quality, with nonperforming loans declining.”

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, 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 amounts)

	(unaudited)			(audited)
Assets	6/30/2026			12/31/2025
Cash and due from banks	$	24,675		$	28,538
Federal funds sold		10,870			55,937
Total cash and cash equivalents		35,545			84,475

Securities held-to-maturity (fair value of $3,267 as of June 30, 2026 and $3,315 as of December 31, 2025), net of allowance for credit losses of $0 as of June 30, 2026 and December 31, 2025		3,581			3,590
Securities available-for-sale, at fair value		236,832			214,128
Restricted stock, at cost		1,872			1,828
Loans, net of allowance for credit losses of $6,597 as of June 30, 2026 and $6,450 as of December 31, 2025		686,084			661,357
Loans held for sale		5,651			3,472
Premises and equipment, net		19,051			19,050
Interest receivable		3,392			3,380
Cash value - bank owned life insurance		24,101			23,676
Customer relationship intangible		5,884			6,164
Goodwill		2,054			2,054
Other assets		17,260			15,850
Total assets	$	1,041,307		$	1,039,024

Liabilities and Stockholders' Equity

Deposits
Noninterest bearing demand	$	136,390		$	131,456
NOW, money market and savings		563,425			570,345
Time		235,369			235,328
Total deposits		935,184			937,129

Other borrowings		8,671			8,796
Interest payable		1,121			1,167
Other liabilities		13,178			11,884
Total liabilities	$	958,154		$	958,976

Stockholders' equity
Common stock $2.14 par value; authorized 10,000,000 shares; issued and outstanding 4,543,338 as of June 30, 2026 and December 31, 2025		9,723			9,723
Additional paid-in capital		35,253			35,253
Retained earnings		55,114			50,009
Accumulated other comprehensive loss		(16,937	)		(14,937	)
Total stockholders' equity	$	83,153		$	80,048

Total liabilities and stockholders' equity	$	1,041,307		$	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 Six Months Ended
	June 30,					June 30,
Interest Income	2026		2025			2026		2025
Loans	$	9,737	$	9,341		$	19,164	$	18,247
Securities
US Government and agency obligations		619		548			1,252		1,002
Mortgage backed securities		741		377			1,191		764
Municipals - taxable		402		330			800		641
Municipals - tax exempt		62		24			125		43
Dividends		34		35			45		48
Corporates		152		136			297		271
Interest bearing deposits		127		127			225		250
Federal Funds sold		413		720			1,037		1,607
Total interest income		12,287		11,638			24,136		22,873

Interest Expense
NOW, money market and savings	$	999	$	1,258		$	2,027	$	2,506
Time deposits		1,893		1,945			3,847		4,024
Finance leases		14		17			28		34
Other borrowings		127		87			246		176
Capital notes		-		81			-		163
Total interest expense		3,033		3,388			6,148		6,903

Net interest income		9,254		8,250			17,988		15,970

Provision for (recovery of) credit losses		350		(528	)		204		(391	)

Net interest income after provision for (recovery of) credit losses		8,904		8,778			17,784		16,361

Noninterest income
Gains on sale of loans held for sale	$	1,529	$	1,589		$	2,725	$	2,426
Service charges, fees and commissions		1,149		975			2,143		1,956
Wealth management fees		1,466		1,300			2,879		2,555
Life insurance income		214		190			425		378
Income from small business investment company		70		-			201		-
Gains on sales of securities		1		-			1		-
Other		47		21			66		43
Total noninterest income		4,476		4,075			8,440		7,358

Noninterest expenses
Salaries and employee benefits		5,510		5,357			11,010		10,134
Occupancy		523		497			1,131		1,067
Equipment		706		654			1,453		1,324
Supplies		132		168			292		310
Professional and other outside expense		756		755			1,526		2,470
Data processing		519		782			994		1,602
Marketing		258		237			447		435
Credit expense		259		263			449		449
FDIC insurance expense		118		120			254		262
Amortization of intangibles		140		140			280		280
Other		390		482			840		948
Total noninterest expenses		9,311		9,455			18,676		19,281

Income before income taxes		4,069		3,398			7,548		4,438

Income tax expense		829		694			1,534		891

Net Income	$	3,240	$	2,704		$	6,014	$	3,547

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	$	0.71	$	0.60		$	1.32	$	0.78


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, 2026		Three months ending Jun 30, 2025			Change			Year to date ending Jun 30, 2026		Year to date ending Jun 30, 2025			Change
Interest income	$	12,287	$	11,638			5.58	%	$	24,136	$	22,873			5.52	%
Interest expense		3,033		3,388			-10.48	%		6,148		6,903			-10.94	%
Net interest income		9,254		8,250			12.17	%		17,988		15,970			12.64	%
Provision for (recovery of) credit losses		350		(528	)		-166.29	%		204		(391	)		-152.17	%
Noninterest income		4,476		4,075			9.84	%		8,440		7,358			14.71	%
Noninterest expense		9,311		9,455			-1.52	%		18,676		19,281			-3.14	%
Income taxes		829		694			19.45	%		1,534		891			72.17	%
Net income		3,240		2,704			19.82	%		6,014		3,547			69.55	%
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	$	0.71	$	0.60		$	0.11		$	1.32	$	0.78		$	0.54

Balance Sheet at period end:	Jun 30, 2026		Dec 31, 2025		Change			Jun 30, 2025		Dec 31, 2024		Change
Loans, net	$	686,084	$	661,357		3.74	%	$	649,089	$	636,552		1.97	%
Loans held for sale		5,651		3,472		62.76	%		4,226		3,616		16.87	%
Total securities		240,413		217,718		10.42	%		200,183		191,522		4.52	%
Total deposits		935,184		937,129		-0.21	%		910,527		882,404		3.19	%
Stockholders' equity		83,153		80,048		3.88	%		71,665		64,865		10.48	%
Total assets		1,041,307		1,039,024		0.22	%		1,004,242		979,244		2.55	%
Shares outstanding		4,543,338		4,543,338		-			4,543,338		4,543,338		-
Book value per share	$	18.30	$	17.62	$	0.68		$	15.77	$	14.28	$	1.49

Daily averages:	Three months ending Jun 30, 2026		Three months ending Jun 30, 2025		Change		Year to date ending Jun 30, 2026		Year to date ending Jun 30, 2025		Change
Loans	$	672,887	$	653,758	2.93	%	$	668,200	$	650,292	2.75	%
Loans held for sale		3,978		3,657	8.78	%		3,481		3,027	15.00	%
Total securities (book value)		266,241		224,411	18.64	%		254,182		221,625	14.69	%
Total deposits		953,084		920,286	3.56	%		950,100		921,241	3.13	%
Stockholders' equity		82,476		68,256	20.83	%		81,811		66,526	22.98	%
Interest earning assets		1,002,566		961,123	4.31	%		998,450		964,062	3.57	%
Interest bearing liabilities		818,203		795,621	2.84	%		819,475		798,331	2.65	%
Total assets		1,058,803		1,020,390	3.76	%		1,054,914		1,020,182	3.40	%

Financial Ratios:	Three months ending Jun 30, 2026		Three months ending Jun 30, 2025		Change	Year to date ending Jun 30, 2026		Year to date ending Jun 30, 2025		Change
Return on average assets	1.23	%	1.06	%	0.17	1.15	%	0.70	%	0.45
Return on average equity	15.76	%	15.89	%	-0.13	14.82	%	10.75	%	4.07
Net interest margin (tax-equivalent)	3.71	%	3.45	%	0.26	3.64	%	3.34	%	0.3
Efficiency ratio	67.82	%	76.71	%	-8.89	70.67	%	82.65	%	-11.98
Average equity to average assets	7.79	%	6.69	%	1.10	7.76	%	6.52	%	1.24

Allowance for credit losses:	Three months ending Jun 30, 2026			Three months ending Jun 30, 2025			Change		Year to date ending Jun 30, 2026			Year to date ending Jun 30, 2025			Change
Beginning balance	$	6,201		$	7,022		-11.69	%	$	6,450		$	7,044		-8.43	%
Provision for (recovery of) credit losses*		410			(555	)	-173.87	%		318			(526	)	-160.46	%
Charge-offs		(90	)		(160	)	-43.75	%		(312	)		(223	)	39.91	%
Recoveries		76			1		7500.00	%		141			13		984.62	%
Ending balance		6,597			6,308		4.58	%		6,597			6,308		4.58	%
* does not include provision for or recovery of unfunded loan commitment liability

Nonperforming assets:	Jun 30, 2026		Dec 31, 2025		Change		Jun 30, 2025		Dec 31, 2024		Change
Total nonperforming loans	$	1,091	$	1,704	-35.97	%	$	1,846	$	1,640	12.56	%
Other real estate owned		-		-	N/A			-		-	N/A
Total nonperforming assets		1,091		1,704	-35.97	%		1,846		1,640	12.56	%

Asset quality ratios:	Jun 30, 2026		Dec 31, 2025		Change	Jun 30, 2025		Dec 31, 2024		Change
Nonperforming loans to total loans	0.16	%	0.26	%	-0.10	0.28	%	0.25	%	0.02
Allowance for credit losses for loans to total loans	0.95	%	0.97	%	-0.02	1.08	%	1.09	%	(0.01	)
Allowance for credit losses for loans to nonperforming loans	604.67	%	378.52	%	226.15	3.90		4.30		-39.20

Bank of the James Announces Second Quarter of 2026 and First Half of 2026 Financial Results and Declaration of Dividend