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 ...

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, ...

The current banking environment continues to be shaped by a challenging interest rate backdrop, heightened competition for deposits and a renewed focus on balance sheet resilience. Across the sector, higher rates have pressured the market value of securities portfolios, leading to elevated unrealized losses, even as core operating performance has been resilient. At the same time, community and regional banks are differentiating themselves through strong local deposit franchises, disciplined credit managemen ...

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]

Core Viewpoint - Bank of the James Financial Group, Inc. reported record quarterly results for Q3 2025, leading to a significant stock price increase and outperforming the broader market [1][14]. Earnings & Revenue Performance - The company achieved a record net income of $2.75 million for Q3 2025, a 38.3% increase from $1.99 million in Q3 2024 [2]. - Earnings per share (EPS) rose to 61 cents from 44 cents year-over-year, while EPS for the first nine months of 2025 remained flat at $1.39 compared to the same period in 2024 [2]. - Total interest income for Q3 2025 increased by 1.8% year-over-year to $11.77 million, and for the first nine months, it rose by 4.9% to $34.64 million [2]. Revenue Growth Drivers - Modest revenue growth was supported by higher loan yields and strong commercial real estate lending activity [3]. - Net interest income advanced 10.5% year-over-year to $8.30 million for Q3 2025 and 12.6% to $24.27 million for the first nine months [3]. Key Business Metrics - The net interest margin expanded by 28 basis points to 3.44% in Q3 2025 from 3.16% a year earlier [4]. - The interest spread improved to 3.15% from 2.81%, aided by reduced funding costs [4]. - Total interest expenses fell by 14.3% to $3.47 million from $4.05 million in the prior-year quarter [4]. Non-Interest Income and Expenses - Non-interest income rose by 9% year-over-year to $4.17 million, driven by gains on mortgage loan sales and wealth management fees [5]. - Non-interest expenses increased by 4.4% to $9.16 million, reflecting higher salaries and costs associated with new banking facilities [5]. Efficiency and Profitability Metrics - The efficiency ratio improved to 73.46% from 77.44%, indicating enhanced operating leverage [6]. - Return on average assets climbed to 1.07% from 0.80%, and return on equity improved to 15.24% from 12.86% [6]. Management Commentary - CEO Robert R. Chapman III attributed the record performance to a disciplined focus on fundamentals and strategic management of loan yields [7]. - The diversified revenue base supported sustainable earnings amid economic uncertainty [7]. Credit Quality and Asset Management - The allowance for credit losses declined to $6.30 million from $7.04 million, indicating robust credit quality [10]. - Non-performing loans totaled $1.90 million, representing just 0.29% of total loans, showcasing exceptional asset quality [10]. Balance Sheet Strength - Total assets reached $1.02 billion, up 4.2% since December 2024, while total deposits rose 4.2% to $919.8 million [11]. - Shareholders' equity advanced 18.7% year-to-date to $76.97 million, and book value per share rose to $16.94 from $14.28 at the end of 2024 [11]. Future Outlook - Management expressed optimism about sustaining profitability through disciplined balance sheet management and prudent credit practices [12]. - The company expects continued margin stability as rate pressures ease and loan demand remains resilient [12]. Other Developments - The bank extinguished approximately $10 million in capital notes, improving its funding profile and reducing interest expenses [13]. - A quarterly dividend of 10 cents per share was declared, payable on December 5, 2025 [13].

Earnings Performance - Earnings per share were $0.61 for the third quarter and $1.39 for the first nine months of 2025, compared to $0.44 and $1.39 for the same periods in 2024[3]. - Net income for the three months ended September 30, 2025, was $2.75 million, a 38.29% increase compared to $1.99 million in the same period of 2024[39]. Interest Income and Margin - Total interest income increased by 1.8% to $11.77 million in Q3 2025 and by 4.9% to $34.64 million for the first nine months, driven by higher yields on loans and commercial real estate loan growth[3]. - Net interest income rose 10.5% to $8.30 million in Q3 2025 and 12.62% to $24.27 million for the first nine months compared to the previous year[3]. - The net interest margin improved to 3.44% in Q3 2025 from 3.16% in Q3 2024, and to 3.37% for the first nine months from 3.07% in the prior year[12]. - The net interest margin increased to 3.44%, up 0.28 percentage points year-over-year, indicating better profitability on interest-earning assets[40]. Asset and Loan Growth - Loans, net of the allowance for credit losses, increased to $653.29 million at September 30, 2025, up from $636.55 million at December 31, 2024[6]. - Total assets reached $1.02 billion at September 30, 2025, compared to $979.24 million at December 31, 2024[17]. - Total loans increased by 4.31% year-over-year to $657,028 million, with a 5.66% increase in the year-to-date figure[40]. - Total assets rose by 2.29% year-over-year to $1,017,872 million, reflecting overall growth in the company's balance sheet[40]. Deposits and Equity - Total deposits grew to $919.80 million at September 30, 2025, up from $882.40 million at December 31, 2024[27]. - Stockholders' equity increased to $76.97 million as of September 30, 2025, up from $64.87 million at December 31, 2024, representing a growth of 18.66%[28]. - Total deposits grew by 2.18% year-over-year to $922,270 million, showing continued customer trust[40]. Noninterest Income and Expenses - Noninterest income was stable at $4.17 million in Q3 2025 and $11.53 million for the first nine months, supported by commercial treasury services and wealth management fees[6]. - The efficiency ratio improved to 73.46%, a decrease of 3.98 percentage points compared to the previous year[40]. Credit Quality - The ratio of nonperforming loans to total loans was 0.29% at September 30, 2025, indicating strong asset quality[24]. - Nonperforming loans increased by 15.55% year-over-year to $1,895 million, indicating potential asset quality concerns[42]. - The allowance for credit losses for loans to total loans decreased to 0.95%, down 0.14 percentage points from the previous year[42]. - The provision for credit losses saw a significant decrease of 91.51%, indicating improved credit quality management[40]. Dividends and Retained Earnings - The Company approved a quarterly dividend of $0.10 per common share to be paid on December 5, 2025[6]. - Retained earnings rose to $47.74 million at September 30, 2025, compared to $42.80 million at December 31, 2024, reflecting an increase of 11.36%[28]. - Book value per share increased to $16.94 at September 30, 2025, from $14.28 at December 31, 2024, marking a rise of 18.66%[28].

Core Insights - Bank of the James Financial Group, Inc. reported record quarterly earnings driven by loan growth, stable funding costs, and exceptional asset quality [1][3][4] Financial Performance - Earnings per share for Q3 2025 were $0.61, up from $0.44 in Q3 2024, while year-to-date earnings per share remained stable at $1.39 [2][32] - Total interest income increased to $11.77 million in Q3 2025, a 1.8% rise from $11.56 million in Q3 2024, and $34.64 million for the first nine months of 2025, up 4.9% from $33.01 million in the same period last year [2][5] - Net interest income rose 10.5% to $8.30 million in Q3 2025, compared to $7.51 million in Q3 2024, and increased 12.62% to $24.27 million for the first nine months of 2025 [2][4][32] - Interest expense decreased by 14.3% to $3.47 million in Q3 2025 from $4.05 million in Q3 2024, reflecting effective rate management [7][32] Asset Quality and Growth - Loans, net of the allowance for credit losses, grew to $653.29 million at September 30, 2025, from $636.55 million at December 31, 2024, with commercial real estate loans leading the growth [2][15][19] - The ratio of nonperforming loans to total loans was 0.29% at September 30, 2025, indicating strong asset quality [19][20] - Total assets reached $1.02 billion at September 30, 2025, up from $979.24 million at December 31, 2024, primarily due to loan growth and increases in securities [13][22] Shareholder Value - Stockholders' equity increased to $76.97 million at September 30, 2025, from $64.87 million at December 31, 2024, with a book value per share rising to $16.94 [23][30] - The Company declared a quarterly dividend of $0.10 per common share, reflecting its commitment to returning value to shareholders [2][3] Revenue Streams - Noninterest income for Q3 2025 was $4.17 million, compared to $3.82 million in Q3 2024, driven by strong contributions from commercial treasury services and wealth management [10][32] - The balanced revenue stream from various services has provided financial stability, even amid economic uncertainty [4][10]

Core Insights - The Bank of the James Financial Group is implementing leadership changes to enhance oversight and coordination of financial and investment strategies [1][2][10] Leadership Transition Overview - J. Todd Scruggs will transition from Chief Financial Officer (CFO) to Chief Investment Officer (CIO), while Eric J. Sorenson, Jr. will take over as CFO [7][9] - This transition aims to support the Company's long-term strategic and governance goals by separating oversight of the investment portfolio from financial operations [8] - The leadership changes reflect the Board's confidence in the capabilities of both executives, emphasizing their experience and commitment to the Bank's values [3][10] Executive Profiles - J. Todd Scruggs has been with the Bank since its founding, overseeing financial planning and risk functions, and will now focus on managing the investment portfolio [5][7] - Eric J. Sorenson, Jr. has extensive experience in regulatory and legal matters, and will oversee financial, accounting, treasury, budgeting, and reporting functions as CFO [4][7] Transition Details - The leadership transition will take effect on January 1, 2026, with a focus on ensuring continuity and minimal disruption to operations [9] - Both executives will collaborate closely during the transition period to maintain operational stability [9]