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  


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Bank of the James Financial Group, Inc.