Bank of the James Announces First Quarter 2026 Financial Results and Declaration of Dividend
Rhea-AI Summary
Bank of the James (NASDAQ:BOTJ) reported first quarter 2026 net income of $2.77 million ($0.61 per share), versus $842,000 a year earlier. Total assets were $1.06 billion and total deposits were $956.55 million at March 31, 2026.
Highlights include net interest income of $8.73 million, net interest margin of 3.57%, an efficiency ratio improvement to 73.75%, and a quarterly dividend of $0.10 per share payable June 5, 2026 to holders of record May 22, 2026.
Positive
- Net income of $2.77 million in Q1 2026 (vs $842,000 a year earlier)
- Net interest income of $8.73 million (+13.15% YoY)
- Net interest margin of 3.57% in Q1 2026
- Total deposits of $956.55 million (4.92% YoY growth)
- Efficiency ratio improved to 73.75% from 89.31% a year earlier
- Stockholders' equity rose to $81.28 million (18.93% YoY)
Negative
- Allowance for credit losses declined to $6.20 million from $7.02 million a year earlier
News Market Reaction – BOTJ
In the May 1 session, BOTJ declined 0.13%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Dividends,earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Jan 31 | Earnings & dividend | Positive | -0.5% | Q4 2024 results with lower YoY earnings but continued growth and dividend. |
| Oct 25 | Earnings & dividend | Positive | -1.2% | Q3 2024 results showing solid assets, deposits, and maintained dividend. |
| Jul 26 | Earnings & dividend | Positive | +4.5% | Q2 2024 results with higher interest and noninterest income and growth. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
For prior combined dividends/earnings releases, BOTJ often showed modest moves, with two negative and one positive reaction, indicating that strong fundamentals did not always translate into immediate price gains.
Over recent dividends/earnings releases, BOTJ has consistently paired quarterly results with a $0.10 dividend, steady loan and deposit growth, and strong asset quality. Q2 and Q3 2024 highlighted growing loans, deposits, and higher noninterest income, while Q4 2024 showed slightly lower earnings but ongoing book value growth. Today’s Q1 2026 report continues that trajectory, adding stronger net interest margin, higher revenue, improved efficiency, and another maintained dividend.
Key Terms
net interest margin financial
efficiency ratio financial
allowance for credit losses financial
nonperforming loans financial
SBIC fund financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Bank of the James Reports First Quarter 2026 Net Income of
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 , or4.89% , 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 with3.25% 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 from89.31% in the first quarter of 2025, as revenue growth of15.40% was paired with a4.69% 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 of1.54% . 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
Revenue, defined as the sum of net interest income and noninterest income, grew
Mike Syrek, President of the Bank, added: “Data processing expense declined
Net interest income for the first quarter of 2026 was
Total interest income was
Total interest expense in the first quarter of 2026 declined
Net interest margin rose to
Noninterest income in the first quarter of 2026 was
Noninterest expense in the first quarter of 2026 was
The Company recorded a
Balance Sheet: Asset Growth
Total assets were
Syrek commented: “Total assets reached
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
Total deposits were
Stockholders’ equity rose to
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)
| (unaudited) | |||||||
| Assets | March 31, 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 | 3,586 | 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 | 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 | $ | 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)
| For the Three Months Ended | ||||||
| March 31, | ||||||
| Interest Income | 2026 | 2025 | ||||
| Loans | $ | 9,427 | $ | 8,906 | ||
| Securities | ||||||
| US Government and agency obligations | 633 | 454 | ||||
| Mortgage backed securities | 450 | 387 | ||||
| Municipals - taxable | 398 | 311 | ||||
| Municipals - tax exempt | 63 | 18 | ||||
| Dividends | 11 | 13 | ||||
| Corporates | 145 | 135 | ||||
| Interest bearing deposits | 98 | 123 | ||||
| Federal Funds sold | 624 | 887 | ||||
| Total interest income | 11,849 | 11,234 | ||||
| Interest Expense | ||||||
| Deposits | ||||||
| NOW, money market savings | 1,028 | 1,248 | ||||
| Time deposits | 1,954 | 2,079 | ||||
| Finance leases | 14 | 17 | ||||
| Other borrowings | 119 | 89 | ||||
| Capital notes | - | 82 | ||||
| Total 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 | 837 | ||||
| Service charges, fees and commissions | 994 | 981 | ||||
| Wealth management fees | 1,413 | 1,255 | ||||
| Life insurance income | 211 | 188 | ||||
| Income from SBIC fund | 131 | - | ||||
| Other | 19 | 22 | ||||
| Total noninterest income | 3,964 | 3,283 | ||||
| Noninterest expenses | ||||||
| Salaries and employee benefits | 5,500 | 4,777 | ||||
| Occupancy | 608 | 570 | ||||
| Equipment | 747 | 670 | ||||
| Supplies | 160 | 142 | ||||
| Professional and other outside expense | 770 | 1,683 | ||||
| Data processing | 475 | 852 | ||||
| Marketing | 189 | 198 | ||||
| Credit expense | 190 | 186 | ||||
| FDIC insurance expense | 136 | 142 | ||||
| Amortization of intangibles | 140 | 140 | ||||
| Other | 450 | 466 | ||||
| Total 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
| Selected Data: | Three months ending Mar 31, 2026 | Three months ending Mar 31, 2025 | Change | |||||
| Interest 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 | ||
| Balance Sheet at period end: | Mar 31, 2026 | Dec 31, 2025 | Change | Mar 31, 2025 | Dec 31, 2024 | Change | ||||||||
| Loans, 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 | ||
| Daily averages: | Three months ending Mar 31, 2026 | Three months ending Mar 31, 2025 | Change | |||
| Loans | $ | 663,461 | $ | 646,788 | 2.58 | % |
| Loans held for sale | 2,979 | 2,391 | 24.59 | % | ||
| Total securities (book value) | 241,989 | 219,550 | 10.22 | % | ||
| Total deposits | 947,084 | 922,207 | 2.70 | % | ||
| Stockholders’ equity | 81,138 | 64,778 | 25.26 | % | ||
| Interest earning assets | 994,286 | 963,688 | 3.18 | % | ||
| Interest bearing liabilities | 820,760 | 800,249 | 2.56 | % | ||
| Total assets | 1,050,981 | 1,021,766 | 2.86 | % | ||
| Financial Ratios: | Three months ending Mar 31, 2026 | Three months ending Mar 31, 2025 | Change | |||
| Return on average assets | 1.07 | % | 0.33 | % | 0.74 | |
| Return on average equity | 13.87 | % | 5.27 | % | 8.60 | |
| Net interest margin | 3.57 | % | 3.25 | % | 0.32 | |
| Efficiency ratio | 73.75 | % | 89.31 | % | (15.56 | ) |
| Average equity to average assets | 7.72 | % | 6.34 | % | 1.38 | |
| Allowance for credit losses: | Three months ending Mar 31, 2026 | Three months ending Mar 31, 2025 | Change | |||||
| Beginning 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 | ||||||||
| Nonperforming assets: | Mar 31, 2026 | Dec 31, 2025 | Change | Mar 31, 2025 | Dec 31, 2024 | Change | ||||||
| Total nonperforming loans | $ | 1,450 | $ | 1,704 | -14.91 | % | $ | 1,799 | $ | 1,640 | 9.70 | % |
| Other real estate owned | - | - | N/A | - | - | N/A | ||||||
| Total nonperforming assets | 1,450 | 1,704 | -14.91 | % | 1,799 | 1,640 | 9.70 | % | ||||
| Asset quality ratios: | Mar 31, 2026 | Dec 31, 2025 | Change | Mar 31, 2025 | Dec 31, 2024 | Change | ||||||
| Nonperforming loans to total loans | 0.22 | % | 0.26 | % | (0.04 | ) | 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 | 427.66 | % | 378.52 | % | 49.13 | 390.33 | % | 429.50 | % | (39.17 | ) | |
