Bank of the James Announces Fourth Quarter, Full Year 2025 Financial Results
04-Feb-2026 16:00:02 EST
Bank of the James Announces Fourth Quarter, Full Year 2025 Financial Results Bank of the James Reports 2025 Net Income of $9.02 Million; Record Annual Earnings; Improved Metrics
GlobeNewswire February 04, 2026
LYNCHBURG, Va., Feb. 04, 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-and twelve-month periods ended December 31, 2025. The Bank serves Region 2000 (the greater Lynchburg metropolitan statistical area) and the Blacksburg, Buchanan, Charlottesville, Harrisonburg, Lexington, Nellysford, Roanoke, and Wytheville, Virginia markets.
Fourth Quarter and Full Year 2025 Highlights
Record annual earnings of $9.02 million for the year ended December 31, 2025, an increase of $1.08 million, or 13.6%, from $7.94 million in 2024. Earnings per share increased to $1.99 from $1.75, representing a 13.6% improvement.
Fourth quarter net income was $2.72 million, compared to $1.62 million in the fourth quarter of 2024. Fourth quarter earnings per share were $0.60 compared to $0.36 in the fourth quarter of 2024.
Total assets increased to $1.04 billion at December 31, 2025, up $59.78 million, or 6.1%, from $979.24 million at December 31, 2024.
Loans, net of allowance for credit losses, increased to $661.36 million at December 31, 2025, up $24.81 million, or 3.9%, from $636.55 million at December 31, 2024.
Total deposits increased to $937.13 million at December 31, 2025, up $54.73 million, or 6.2%, from $882.40 million at December 31, 2024, driven by growth in core deposits.
Net interest income increased 11.1% to $8.54 million in the fourth quarter of 2025, up from $7.69 million a year earlier. For the full year 2025, net interest income increased 12.2% to $32.81 million from $29.24 million in 2024.
Net interest margin for the three months ended December 31, 2025, was 3.44% compared with 3.18% for the three months ended December 31, 2024. For the twelve months ended December 31, 2025, net interest margin was 3.39% compared to 3.11% for the twelve months ended December 31, 2024.
Interest expense decreased 12.1% in the fourth quarter of 2025 to $3.47 million from $3.95 million in the fourth quarter of 2024. For the full year, interest expense declined 10.1% to $13.85 million from $15.41 million, driven by lower deposit costs and the retirement of capital notes.
Efficiency ratio (non-interest expense divided by the sum of net interest income and noninterest income) improved to 70.81% in the fourth quarter of 2025 from 82.62% in the fourth quarter of 2024. For the full year, the efficiency ratio improved to 77.17% from 79.11% for the prior year, as revenue growth of 9.7% outpaced expense growth of 7.0%.
Wealth management fees from PWW increased 10.4% to $5.35 million in 2025 from $4.84 million in 2024, contributing approximately $0.38 per share to earnings.
Stockholders' equity increased to $80.05 million at December 31, 2025 from $64.87 million at December 31, 2024, an increase of 23.4%. Book value per share rose to $17.62 from $14.28.
Pre-tax, pre-provision income increased to $3.76 million in the fourth quarter of 2025, compared to $2.00 million in the fourth quarter of 2024. For full year 2025, pre-tax, pre-provision income was $11.1 million, compared to $9.27 million for 2024, an increase of 19.9%.
Fourth Quarter, Full Year 2025 Operational Review
Robert R. Chapman III, CEO of the Bank, commented: “We had record annual earnings of $9.02 million in 2025, up 13.6% from 2024. Margin improved as we managed deposit pricing and loan yields, and interest expense declined after we retired approximately $10.05 million in capital notes earlier in the year. Fourth-quarter noninterest expense also declined as we reduced data processing costs and professional fees. We will carry that same focus on pricing, costs, and credit into 2026.”
Mike Syrek, President of the Bank added: “On the expense side, vendor renegotiations and lower professional fees reduced fourth-quarter noninterest expense, and we expect those savings to continue into 2026. Our efficiency ratio improved dramatically throughout the year, reflecting the progress we've made on the expense side. Continuing to improve efficiency remains a key focus in 2026.”
Net interest income, for the fourth quarter of 2025 was $8.54 million, up 11.1% from $7.69 million in the fourth quarter of 2024. For the full year 2025, net interest income grew $3.57 million, or 12.2%, to $32.81 million from $29.24 million in 2024.
Total interest income was $12.01 million in the fourth quarter of 2025 compared with $11.64 million a year earlier. For the full year 2025, total interest income rose to $46.66 million from $44.64 million in 2024. Quarter-to-date and year-to-date growth was driven largely by higher rates on variable-rate commercial loans and the origination of new loans at current market rates.
Total interest expense in the fourth quarter of 2025 declined 12.1% to $3.47 million compared with $3.95 million in the fourth quarter of 2024. For the full year 2025, total interest expense declined to $13.85 million from $15.41 million in the prior year. Lower interest expense in both periods primarily reflected the moderately easing rate environment, the Bank's active management of deposit pricing, and the retirement of approximately $10.05 million in capital notes at the end of the second quarter of 2025.
Net interest margin and interest spread improved during the past year as loan yields remained aligned with the interest rate environment and the Bank controlled deposit costs and borrowings. Net interest margin of 3.44% in the fourth quarter of 2025 increased from both the second and third quarters of 2025.
Noninterest income in the fourth quarter of 2025 was $4.33 million compared with $3.82 million in the fourth quarter of 2024, an increase of 13.3%. Noninterest income for the full year 2025 was $15.85 million compared with $15.14 million in 2024, an increase of 4.7%. Most noninterest income in both periods came from gains on sale of loans held for sale by our mortgage division, wealth management fees generated by PWW, and service charges, fees and commissions from commercial treasury services and debit card activity. Growth in management fees generated by PWW resulted from an increase in assets under management.
Noninterest expense in the fourth quarter of 2025 was $9.11 million compared with $9.50 million a year earlier, a decrease of 4.2%. The improvement reflects reduced data processing costs from successful vendor negotiations and lower professional fees.
For the full year 2025, noninterest expense was $37.55 million compared with $35.11 million in 2024. The year-over-year increase was primarily due to increased salaries and employee benefits, including the addition of revenue-generating employees and new banking facilities in strategic locations, partially offset by reductions in data processing.
Balance Sheet: Asset Growth
Total assets were $1.04 billion at December 31, 2025 compared with $979.24 million at December 31, 2024. The increase was due primarily to growth in loans and securities available-for-sale.
Syrek commented: “We finished 2025 with over $1 billion in assets, supported by loan and deposit growth. Net loans increased 3.9% year over year, and the allowance for credit losses ended the year at $6.45 million. We were able to grow loans without compromising our credit standards.”
Loans, net of allowance for credit losses, were $661.36 million at December 31, 2025 compared with $636.55 million at December 31, 2024, an increase of $24.81 million, or 3.9%. The allowance for credit losses was $6.45 million at December 31, 2025 and $7.04 million at December 31, 2024.
Total deposits were $937.13 million at December 31, 2025 compared with $882.40 million at December 31, 2024, an increase of $54.73 million, or 6.2%. Core deposits (noninterest bearing demand deposits, NOW, money market and savings) were $701.80 million compared with $651.90 million at December 31, 2024, an increase of $49.90 million, or 7.7%, driven by growth in lower-cost core deposits.
Stockholders' equity rose to $80.05 million at December 31, 2025 from $64.87 million at December 31, 2024, an increase of 23.4%. Retained earnings increased to $50.01 million at December 31, 2025 from $42.80 million at December 31, 2024. Book value per share rose to $17.62 at December 31, 2025 from $14.28 at December 31, 2024, reflecting both retained earnings growth and improved valuations in the Company's available-for-sale investment portfolio as market interest rates declined.
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.
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)
Assets
12/31/2025
12/31/2024
Cash and due from banks
$
28,538
$
23,287
Federal funds sold
55,937
50,022
Total cash and cash equivalents
84,475
73,309
Securities held-to-maturity, at amortized cost (fair value of $3,315 as of December 31, 2025 and $3,170 as of December 31, 2024) net of allowance for credit losses of $0 as of December 31, 2025 and December 31, 2024
3,590
3,606
Securities available-for-sale, at fair value
214,128
187,916
Restricted stock, at cost
1,828
1,821
Loans, net of allowance for credit losses of $6,450 as of December 31, 2025 and $7,044 as of December 31, 2024
661,357
636,552
Loans held for sale
3,472
3,616
Premises and equipment, net
19,132
19,313
Interest receivable
3,380
3,065
Cash value – bank owned life insurance
23,676
22,907
Customer relationship intangible
6,164
6,725
Goodwill
2,054
2,054
Other assets
15,768
18,360
Total assets
$
1,039,024
$
979,244
Liabilities and Stockholders' Equity
Deposits
Noninterest bearing demand
$
131,456
$
129,692
NOW, money market and savings
570,345
522,208
Time
235,328
230,504
Total deposits
937,129
882,404
Capital notes, net
–
10,048
Other borrowings
8,796
9,300
Interest payable
1,167
722
Other liabilities
11,884
11,905
Total liabilities
$
958,976
$
914,379
Stockholders' equity
Common stock $2.14 par value; authorized 10,000,000 shares; issued and outstanding
4,543,338 as of December 31, 2025 and December 31, 2024
$
9,723
$
9,723
Additional paid-in-capital
35,253
35,253
Retained earnings
50,009
42,804
Accumulated other comprehensive loss
(14,937
)
(22,915
)
Total stockholders' equity
$
80,048
$
64,865
Total liabilities and stockholders' equity
$
1,039,024
$
979,244
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
For the Twelve Months
Ended December 31,
Ended December 31,
Interest Income
2025
2024
2025
2024
Loans
$
9,515
$
9,130
$
37,254
$
34,505
Securities
US Government and agency obligations
579
403
2,121
1,471
Mortgage backed securities
395
407
1,545
2,381
Municipals – taxable
397
299
1,393
1,171
Municipals – tax exempt
53
18
135
73
Dividends
35
36
98
95
Corporates
123
136
530
543
Interest bearing deposits
159
147
559
775
Federal Funds sold
756
1,060
3,020
3,629
Total interest income
12,012
11,636
46,655
44,643
Interest Expense
Deposits
NOW, money market savings
1,170
1,310
4,949
5,455
Time Deposits
2,144
2,442
8,282
9,173
Finance leases
15
18
65
76
Other borrowings
145
98
389
376
Capital notes
–
82
163
327
Total interest expense
3,474
3,950
13,848
15,407
Net interest income
8,538
7,686
32,807
29,236
Provision for (recovery of) credit losses
266
(71
)
(35
)
(655
)
Net interest income after provision for (recovery of) credit losses
8,272
7,757
32,842
29,891
Noninterest income
Gains on sale of loans held for sale
1,185
968
4,853
4,494
Service charges, fees and commissions
1,271
1,073
4,273
4,003
Wealth management fees
1,430
1,260
5,347
4,843
Life insurance income
197
190
770
721
Income from SBIC fund
228
334
506
934
Other
14
11
76
80
Gain on sales of available-for-sale securities
–
(20
)
27
62
Total noninterest income
4,325
3,816
15,852
15,137
Noninterest expenses
Salaries and employee benefits
5,310
5,038
20,960
19,294
Occupancy
546
471
2,136
1,964
Equipment
744
620
2,765
2,499
Supplies
168
145
631
542
Professional and other outside expense
773
1,226
3,967
3,351
Data processing
503
825
2,487
3,177
Marketing
183
287
867
768
Credit expense
239
204
904
816
FDIC insurance expense
124
112
518
441
Amortization of intangibles
140
140
560
560
Other
378
435
1,754
1,693
Total noninterest expenses
9,108
9,503
37,549
35,105
Income before income taxes
3,489
2,070
11,145
9,923
Income tax expense
766
452
2,123
1,979
Net Income
$
2,723
$
1,618
$
9,022
$
7,944
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
$
0.60
$
0.36
$
1.99
$
1.75
Bank of the James Financial Group, Inc. and Subsidiaries Dollar amounts in thousands, except per share data Unaudited
Selected Data:
Three months ending Dec 31, 2025
Three months ending Dec 31, 2024
Change
Year to date Dec 31, 2025
Year to date Dec 31, 2024
Change
Interest income
$
12,012
$
11,636
3.23
%
$
46,655
$
44,643
4.51
%
Interest expense
3,474
3,950
-12.05
%
13,848
15,407
-10.12
%
Net interest income
8,538
7,686
11.09
%
32,807
29,236
12.21
%
Provision for (recovery of) credit losses
266
(71
)
-474.65
%
(35
)
(655
)
-94.66
%
Noninterest income
4,325
3,816
13.34
%
15,852
15,137
4.72
%
Noninterest expense
9,108
9,503
-4.16
%
37,549
35,105
6.96
%
Income taxes
766
452
69.47
%
2,123
1,979
7.28
%
Net income
$
2,723
$
1,618
68.29
%
$
9,022
$
7,944
13.58
%
Weighted average shares outstanding – basic and diluted
4,543,338
4,543,338
–
4,543,338
4,543,338
–
Net income per share – basic and diluted
$
0.60
$
0.36
$
0.24
$
1.99
$
1.75
$
0.24
Balance Sheet at period end:
Dec 31, 2025
Dec 31, 2024
Change
Dec 31, 2024
Dec 31, 2023
Change
Loans, net
$
661,357
$
636,552
3.90
%
$
636,552
$
601,921
5.75
%
Loans held for sale
3,472
3,616
-3.98
%
3,616
1,258
187.44
%
Total debt securities
217,718
191,522
13.68
%
191,522
220,132
-13.00
%
Total deposits
937,129
882,404
6.20
%
882,404
878,459
0.45
%
Stockholders' equity
80,048
64,865
23.41
%
64,865
60,039
8.04
%
Total assets
1,039,024
979,244
6.10
%
979,244
969,371
1.02
%
Shares outstanding
4,543,338
4,543,338
–
4,543,338
4,543,338
–
Book value per share
$
17.62
$
14.28
$
3.34
$
14.28
$
13.21
$
1.07
Daily averages:
Three months ending Dec 31, 2025
Three months ending Dec 31, 2024
Change
Year to date Dec 31, 2025
Year to date Dec 31, 2024
Change
Loans
$
661,581
$
642,197
3.02
%
$
654,835
$
623,769
4.98
%
Loans held for sale
4,011
3,612
11.05
%
3,271
3,494
-6.38
%
Total securities (book value)
230,940
218,680
5.61
%
225,002
232,992
-3.43
%
Total deposits
942,040
920,655
2.32
%
921,488
901,449
2.22
%
Stockholders' equity
77,770
68,563
13.43
%
71,133
62,575
13.68
%
Interest earning assets
988,760
963,512
2.62
%
969,433
939,900
3.14
%
Interest bearing liabilities
815,834
801,812
1.75
%
801,692
783,003
2.39
%
Total assets
1,043,521
1,021,547
2.15
%
1,020,156
995,738
2.45
%
Financial Ratios:
Three months ending Dec 31, 2025
Three months ending Dec 31, 2024
Change
Year to date Dec 31, 2025
Year to date Dec 31, 2024
Change
Return on average assets
1.04
%
0.63
%
0.41
0.88
%
0.80
%
0.08
Return on average equity
13.89
%
9.39
%
4.50
12.68
%
12.70
%
(0.02
)
Net interest margin
3.44
%
3.18
%
0.26
3.39
%
3.11
%
0.26
Efficiency ratio
70.81
%
82.62
%
(11.81
)
77.17
%
79.11
%
(1.94
)
Average equity to average assets
7.45
%
6.71
%
0.74
6.97
%
6.28
%
0.69
Allowance for credit losses:
Three months ending Dec 31, 2025
Three months ending Dec 31, 2024
Change
Year to date Dec 31, 2025
Year to date Dec 31, 2024
Change
Beginning balance
$
6,298
$
7,078
-11.02
%
$
7,044
$
7,412
-4.96
%
Provision for (recovery of) credit losses*
352
(39
)
-1002.56
%
(166
)
(533
)
-68.86
%
Charge-offs
(203
)
–
N/A
(447
)
(84
)
432.14
%
Recoveries
3
5
-40.00
%
19
249
-92.37
%
Ending balance
6,450
7,044
-8.43
%
6,450
7,044
-8.43
%
* does not include provision for or recovery of unfunded loan commitment liability
Nonperforming assets:
Dec 31, 2025
Dec 31, 2024
Change
Dec 31, 2024
Dec 31, 2023
Change
Total nonperforming loans
$
1,704
$
1,640
3.90
%
$
1,640
$
391
319.44
%
Other real estate owned
–
–
N/A
–
–
N/A
Total nonperforming assets
1,704
1,640
3.90
%
1,640
391
319.44
%
Asset quality ratios:
Dec 31, 2025
Dec 31, 2024
Change
Dec 31, 2024
Dec 31, 2023
Change
Nonperforming loans to total loans
0.26
%
0.25
%
0.01
0.25
%
0.06
%
0.19
Allowance for credit losses for loans to total loans
0.97
%
1.09
%
(0.12
)
1.09
%
1.22
%
(0.13
)
Allowance for credit losses for loans to nonperforming loans
