Bank Of The James Financial Group Announces Third Quarter Of 2026 And First Nine Months Of 2026 Financial Results And Declaration Of Cash Dividend Increases Quarterly Cash Dividend By 50%

(MENAFN- GlobeNewsWire - Nasdaq) Bank of the James Financial Group Reports First Nine Months 2026 Net Income of $9.34 Million, $2.05 Per Share

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:

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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