Core Insights - Bank of the James Financial Group, Inc. (BOTJ) reported a 2.1% increase in shares following strong fourth-quarter 2025 results, driven by higher net interest income, expanding margins, and disciplined expense management [1] - The company achieved record annual earnings and steady balance sheet growth, indicating improving operating performance [1] Financial Performance - For Q4 2025, BOTJ's net income reached $2.72 million, up from $1.62 million in Q4 2024, with earnings per share increasing to $0.60 from $0.36 [4] - Annual net income for 2025 rose 13.6% to a record $9.02 million from $7.94 million in 2024, with earnings per share improving to $1.99 from $1.75 [4] Income and Expenses - Net interest income grew 11.1% year over year to $8.54 million in Q4 2025, and for the full year, it increased 12.2% to $32.81 million from $29.24 million in 2024 [5] - Non-interest income increased 13.3% in Q4 to $4.33 million and rose 4.7% for the year to $15.85 million, with wealth management fees climbing 10.4% year over year to $5.35 million in 2025 [6] - Non-interest expenses declined 4.2% year over year in Q4 to $9.11 million, leading to an improved efficiency ratio of 70.81% from 82.62% in the prior-year quarter [6] Asset and Deposit Growth - As of December 31, 2025, total assets increased 6.1% year over year to $1.04 billion, with loans rising 3.9% to $661.36 million and total deposits growing 6.2% to $937.13 million [7] Asset Quality and Capital Position - The allowance for credit losses was $6.45 million at December 31, 2025, down from $7.04 million at the end of 2024, while total non-performing loans slightly increased to $1.70 million [8] - Stockholders' equity rose 23.4% year over year to $80.05 million, with book value per share increasing to $17.62 from $14.28 [8] Conclusion - Overall, BOTJ delivered record annual earnings in 2025, supported by margin expansion, lower interest expenses, steady loan and deposit growth, and improved operating efficiency, positioning the company favorably for 2026 [10]

经济观察网詹姆斯金融银行(BOTJ.US)近期值得关注的事件主要集中在其财务表现和行业动态上。 公司业务涵盖社区银行、抵押贷款银行和投资咨询，需关注其贷款质量变化及利率风险管理的进展。 业绩经营情况 机构观点 公司最近一期财报显示，营业收入为1594万美元，净利润为275万美元，每股收益为0.61美元，市盈率 为10.27倍。 股票近期走势 2025年11月29日，股价单日大幅拉升5.70%，报收17.98美元，成交量940股，换手率0.02%。 行业政策与环境 同日，银行行业整体涨幅为0.68%，部分区域性银行股表现活跃。需关注美联储货币政策动向对中小银 行净息差及融资成本的影响。 公司基本面 截至目前，暂无机构对该股发布评级或投资建议。 以上内容基于公开资料整理，不构成投资建议。 ...

经济观察网詹姆斯金融银行(BOTJ.OQ)近7天股价波动显著，区间累计下跌2.43%，振幅达6.38%。成交 活跃度较低，近5日日均成交量约6,266股，换手率0.11%。同期，美股银行板块整体下跌0.25%，道琼斯 指数微跌0.16%，显示个股表现与行业趋势基本同步。 以上内容基于公开资料整理，不构成投资建议。 财报分析 2025财年年报数据显示，公司全年营业收入6250.7万美元，净利润902.2万美元，基本每股收益1.99美 元，较2024财年实现稳健增长。结合近7天股价震荡，部分投资者可能仍在消化财报信息，尤其是市盈 率(TTM)10.29倍、市净率1.16倍等估值指标与行业平均水平的对比。 ...

Core Insights - Bank of the James Financial Group, Inc. (BOTJ) has shown strong stock performance, gaining 2.1% since its fourth-quarter 2025 earnings report, significantly outperforming the S&P 500 Index, which declined by 0.2% during the same period [1] Financial Performance - For Q4 2025, BOTJ reported a net income of $2.72 million, a 68.3% increase from $1.62 million in Q4 2024, with earnings per share rising to 60 cents from 36 cents [2] - Full-year 2025 net income reached a record $9.02 million, up 13.6% from $7.94 million in 2024, while full-year EPS improved to $1.99 from $1.75, also reflecting a 13.6% gain [2] Revenue and Income Growth - Net interest income for Q4 increased by 11.1% year over year to $8.54 million, and for the full year, it climbed 12.2% to $32.81 million [3] - Total noninterest income rose by 13.3% in Q4 and 4.7% for the full year, indicating growth across various fee-based categories [3] Balance Sheet Metrics - Total assets grew by 6.1% year over year to $1.04 billion as of December 31, 2025, with loans net of allowance for credit losses increasing by 3.9% to $661.36 million [4] - Total deposits rose by 6.2% to $937.13 million, primarily driven by a 7.7% increase in core deposits [4] - Stockholders' equity increased by 23.4% to $80.05 million, supported by retained earnings growth and improved valuations in available-for-sale securities [4] Profitability Metrics - Book value per share increased to $17.62 from $14.28 a year earlier [5] - Return on average assets improved to 1.04% for Q4 compared to 0.63% a year ago, while return on average equity rose to 13.89% from 9.39% [5] Management Commentary - Management emphasized revenue momentum and expense discipline as key drivers of improved results, with margin improvement attributed to active management of deposit pricing and loan yields [6] - The retirement of approximately $10.05 million in capital notes earlier in the year contributed to a decline in interest expense [6] - Ongoing savings from vendor renegotiations and lower professional fees are expected to continue into 2026 [6] Factors Influencing Financial Results - The improved net interest income was supported by an expanded net interest margin of 3.44% in Q4, up from 3.18% a year earlier [7] - Interest expense declined by 12.1% in Q4 and 10.1% for the full year, reflecting lower deposit costs and the retirement of capital notes [7] - Noninterest income growth was primarily driven by gains on loan sales, higher wealth management fees, and increased service charges [7] Expense Management - Noninterest expense decreased by 4.2% year over year in Q4 due to lower data processing costs and reduced professional fees, although full-year noninterest expense rose by 7% due to higher salaries and investments in new banking facilities [8] Strategic Focus - The company is focused on pricing, cost control, and credit discipline, with expense savings from vendor negotiations and process improvements expected to persist [10][11]

Exhibit 99.1 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 LYNCHBURG, VA, February 4, 2026 -- 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 ...

Core Insights - Bank of the James Financial Group, Inc. reported record annual earnings of $9.02 million for 2025, reflecting a 13.6% increase from 2024 [3][4] - The company achieved a net interest income of $32.81 million for the full year 2025, up 12.2% from $29.24 million in 2024 [3][4] - Total assets reached $1.04 billion at the end of 2025, marking a 6.1% increase from $979.24 million at the end of 2024 [4][11] Financial Performance - Fourth-quarter net income was $2.72 million, compared to $1.62 million in the same quarter of 2024, with earnings per share rising to $0.60 from $0.36 [4][21] - Net interest margin improved to 3.44% in Q4 2025, up from 3.18% in Q4 2024, while the full year margin was 3.39%, compared to 3.11% in 2024 [4][25] - Noninterest income for the full year increased by 4.7% to $15.85 million, driven by gains on loan sales and wealth management fees [8][21] Asset and Liability Management - Total deposits increased to $937.13 million at December 31, 2025, a rise of 6.2% from $882.40 million in 2024, with core deposits growing by 7.7% [12][4] - Loans, net of allowance for credit losses, rose to $661.36 million, reflecting a 3.9% increase from $636.55 million in 2024 [4][11] - Stockholders' equity increased by 23.4% to $80.05 million, with book value per share rising to $17.62 from $14.28 [13][4] Expense Management - Noninterest expense decreased by 4.2% in Q4 2025 to $9.11 million, attributed to reduced data processing costs and lower professional fees [9][10] - The efficiency ratio improved significantly to 70.81% in Q4 2025 from 82.62% in Q4 2024, indicating better cost management [4][25] - Interest expense declined by 12.1% in Q4 2025 to $3.47 million, reflecting effective management of deposit pricing and the retirement of capital notes [6][4] Market Position and Strategy - The company serves a diverse range of markets in Virginia, including Lynchburg and surrounding areas, focusing on both commercial and retail banking [1][14] - The management emphasized a continued focus on pricing, costs, and credit quality as key strategies for 2026 [3][4] - Wealth management fees from Pettyjohn, Wood & White, Inc. increased by 10.4% in 2025, contributing positively to overall earnings [4][8]

Industry Overview - The current banking environment is influenced by challenging interest rates, increased competition for deposits, and a focus on balance sheet resilience [1] - Higher interest rates have pressured the market value of securities portfolios, leading to unrealized losses, while core operating performance remains resilient [1] Company Highlights Security Federal Corporation (SFDL) - SFDL has a diversified balance sheet with total assets of $1.61 billion as of September 30, 2025, including $789.3 million in investment securities and $678.1 million in net loans [3] - The company reported net income of $9.4 million for the first nine months of 2025, a significant increase from the previous year, driven by higher net interest income and a reversal of provision for credit losses [3][4] - SFDL has a strong deposit base of $1.37 billion, positioning it well for stable earnings as rate pressures normalize [4][5] Bank of the James Financial Group (BOTJ) - BOTJ reported total assets of $1.02 billion at the end of the third quarter of 2025, with net loans of $653.3 million, supported by a diversified revenue stream [6] - The company generated net income of $6.3 million for the first nine months of 2025, demonstrating resilience in a competitive rate environment [6][7] - BOTJ's stable asset base and improving capital position position it for moderate, sustainable growth [7] Community Bancorp (CMTV) - CMTV is the largest of the three institutions, with total assets of $1.23 billion as of September 30, 2025, and a substantial loan portfolio of $951.9 million [8] - The company achieved net income of $12.3 million for the first nine months of 2025, reflecting higher net interest income and improved operating leverage [9] - CMTV's strong earnings growth and improving credit trends position it to outperform smaller peers as operating conditions stabilize [10] Conclusion - SFDL, BOTJ, and CMTV exemplify how community and regional banks can remain resilient in a volatile banking environment, benefiting from solid asset foundations, prudent credit management, and earnings stability [11]

Core Viewpoint - Bank of the James Financial Group, Inc. announced the retirement of J. Todd Scruggs from its Boards of Directors and executive roles, effective January 5, 2026, marking the end of a significant era for the company [1][2]. Group 1: Leadership Transition - J. Todd Scruggs was a co-founder of Bank of the James in 1998 and played a crucial role in establishing the initial Board of Directors and raising the Bank's starting capital [2]. - Scruggs served as Chief Financial Officer from the Bank's inception until 2025, overseeing the financial strategy during over 25 years of growth, including the transition to a public company and regional expansion [2]. - The CEO, Robert R. Chapman III, highlighted Scruggs' contributions to the Bank's growth from a de novo bank with $10 million in initial capital to a regional institution with over $1 billion in assets and more than 20 locations in Virginia [3]. Group 2: Company Overview - 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 [4]. - The Bank services customers in Virginia from multiple locations and offers full investment and insurance services through its BOTJ Investment Services division and BOTJ Insurance, Inc. subsidiary [4]. - The Company provides investment advisory services through its subsidiary, Pettyjohn, Wood & White, Inc., which is an SEC-registered investment advisor [4].

Core Insights - Community banks are facing competitive deposit pricing, high operating costs, and a focus on disciplined credit oversight, with Peoples Bancorp of North Carolina, Inc. (PEBK) and Bank of the James Financial Group, Inc. (BOTJ) as notable examples of differing operational models [1][2] Company Overview - PEBK operates primarily through Peoples Bank and has a layered business model that includes investment services, real estate advisory, appraisal management, and real estate holdings, broadening client engagement beyond traditional banking [1] - BOTJ is anchored by Bank of the James and diversifies its offerings through a mortgage division, an insurance agency, and investment advisory services, creating multiple fee-based revenue streams alongside its core banking operations [1][2] Stock Performance & Valuation - Over the past three months, PEBK has outperformed BOTJ with a stock increase of 19.6% compared to BOTJ's 18.7%, but in the past year, BOTJ has outperformed with a gain of 23.5% versus PEBK's 18.8% [3] - PEBK's trailing 12-month price-to-sales (P/S) ratio is 1.8X, slightly above its five-year median of 1.7X, while BOTJ's P/S ratio is 1.4X, above its five-year median of 1.2X; both companies are considered inexpensive compared to the Zacks Finance sector average of 7.1X [4] Factors Driving Peoples Bancorp's Stock - PEBK benefits from a favorable rate and funding environment, with easing deposit-cost pressures and solid loan growth contributing to profitability without aggressive balance sheet expansion [6] - The bank's nonbank contributions, particularly from its appraisal-management platform, have driven noninterest revenue, offsetting weaker performance in other fee lines [7] - PEBK maintains a disciplined capital-return approach, sustaining regular cash dividends and encouraging long-term participation through reinvestment plans, indicating confidence in cash-flow stability [8] Factors Driving Bank of the James' Stock - BOTJ is experiencing a favorable funding and margin environment, aided by tighter deposit pricing discipline and strategic balance-sheet actions that enhance net interest margins [9] - The bank's diversified business model generates non-interest income from commercial treasury management, mortgage banking, and advisory fees, broadening revenue sources [10] - Investor confidence in BOTJ is supported by a growth strategy focused on sound credit oversight, with an emphasis on conservative underwriting and asset quality monitoring [11] Investment Recommendation - PEBK is currently viewed as a more attractive investment opportunity compared to BOTJ, with stronger recent performance and a favorable risk-reward profile [12][15] - Despite BOTJ's stronger one-year gain and diversified revenue streams, its valuation has increased, reducing the margin of safety compared to PEBK, which remains attractively priced relative to sector norms [14][15]

Credit and Loan Commitments - As of September 30, 2025, the Bank's commitments to extend credit increased to $201,227,000 from $182,522,000 as of December 31, 2024, representing a growth of approximately 10.3%[145] - The total off-balance sheet commitments, including letters of credit, amounted to $203,685,000 as of September 30, 2025, compared to $186,029,000 at the end of 2024, indicating an increase of about 9.5%[145] - Total loans, excluding loans held for sale, increased by 2.37% to $659,586,000, with growth primarily in commercial and commercial real estate portfolios[153] - Nonperforming loans totaled approximately $1,895,000 at September 30, 2025, representing 0.29% of total loans, up from 0.25% at year-end 2024[218] Financial Performance - For the three months ended September 30, 2025, the company reported net income of $2,752,000, an increase of 38.3% compared to $1,990,000 for the same period in 2024[182] - Basic and diluted earnings per common share were $0.61 for the three months ended September 30, 2025, compared to $0.44 for the same period in 2024[183] - Interest income increased to $11,771,000 for the three months ended September 30, 2025, up from $11,563,000 in 2024, driven by higher average loan balances and improved yields[187] - Net interest income rose to $8,300,000 for the three months ended September 30, 2025, representing a 10.5% increase from $7,509,000 in 2024[191] - Noninterest income totaled $4,169,000 for the three months ended September 30, 2025, a 9.1% increase from $3,823,000 in 2024[195] Asset and Liability Management - Total assets increased by 4.18% to $1,020,125,000 as of September 30, 2025, compared to $979,244,000 at December 31, 2024[151] - Total deposits rose by 4.24% to $919,796,000, driven by inflows into money market and time deposit products[152] - Total uninsured deposits were approximately $276,000,000, or 30% of total deposits, as of September 30, 2025[174] - The Bank had no borrowings from correspondent relationships or the FHLBA as of September 30, 2025, indicating adequate liquidity[172] Capital and Equity - Stockholders' equity rose by 18.66% to $76,972,000, primarily due to retained earnings growth[177] - The Bank's Tier 1 risk-based capital ratio was 11.41%, exceeding the well-capitalized institution requirements[175] Credit Losses and Allowance - The allowance for credit losses is based on management's estimates of expected credit losses, which may differ from actual losses due to various factors[128] - The allowance for credit losses was $6,298,000 as of September 30, 2025, representing 0.95% of total loans, down from 1.09% at year-end 2024[215] - The provision for credit losses recorded was $91,000 for Q3 2025, compared to $92,000 for the same period in 2024, while a recovery of $300,000 was noted for the nine months ended September 30, 2025[214] Branch Expansion and Strategy - The Bank opened a new full-service branch in Nellysford, Virginia, in September 2025, while continuously evaluating potential new branch locations for future expansion[140] - Management expects that each new branch will become profitable within 12 to 18 months of operation, although the financial impact of each new branch cannot be predicted with certainty[141] - The Bank's expansion plans are subject to regulatory approval, and it may open additional branches in the next two fiscal years[141] Operational Efficiency - Noninterest expense for Q3 2025 increased to $9,160,000, a 4.4% rise from Q3 2024, and year-to-date expenses reached $28,441,000, up 11.1% from the previous year[205] - Total personnel expenses for Q3 2025 were $5,516,000, reflecting a 12.1% increase from $4,920,000 in Q3 2024, driven by merit increases and staffing additions[206] - The company anticipates monthly cost savings of over $40,000 from the amended core-service provider contract initiated in April 2025[211] Market Conditions and Economic Factors - The Bank's financial condition is influenced by regional economic conditions, interest rate fluctuations, and changes in real estate values in its market area[127] - The company anticipates that elevated interest rates may continue to limit refinancing activity in the near term[201] Interest Income and Margin - The net interest margin was 3.44% for the quarter ended September 30, 2025, compared to 3.16% for the same period in 2024[192] - The average interest rate on loans, including fees, rose to 5.65% in 2025 from 5.45% in 2024, showing an increase of 20 basis points[226] - The interest spread improved to 3.07% in 2025 from 2.73% in 2024, indicating enhanced profitability on interest-earning assets[228]