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Shares of Bank of the James Financial Group, Inc. (BOTJ - Free Report) have gained 2.1% since reporting fourth-quarter 2025 results. The company’s results reflect solid fundamental momentum, driven by higher net interest income, expanding margins and disciplined expense management. Record annual earnings and steady balance sheet growth further underscore BOTJ’s improving operating performance. Read our earnings blog: BOTJ Q4 Earnings Rise Y/Y on Strong Margins & Lower Costs
Banking Operations of Bank of the James
BOTJ operates as the holding company for Bank of the James, a full-service commercial and retail bank headquartered in Lynchburg, VA, serving multiple Virginia markets. The company also provides investment advisory services through Pettyjohn, Wood & White, Inc. (“PWW”).
Performance is primarily driven by net interest income, loan and deposit growth, wealth management fees, and expense discipline. In 2025, the company benefited from improved deposit pricing management, higher loan yields and the retirement of capital notes, which helped reduce interest expenses and expand margins.
BOTJ’s Q4 Earnings
For the fourth quarter of 2025, BOTJ reported net income of $2.72 million, up from $1.62 million in the year-ago quarter. Earnings per share increased to $0.60 from $0.36.
For 2025, net income rose 13.6% to a record $9.02 million from $7.94 million in 2024. Earnings per share improved to $1.99 from $1.75.
Net interest income grew 11.1% year over year to $8.54 million in the fourth quarter. For the full year, net interest income increased 12.2% to $32.81 million from $29.24 million in 2024.
The net interest margin expanded to 3.44% in the fourth quarter from 3.18% a year earlier. For 2025, the margin improved to 3.39% from 3.11% in 2024.
Non-interest income increased 13.3% in the quarter to $4.33 million and rose 4.7% for the year to $15.85 million. Wealth management fees from PWW climbed 10.4% year over year to $5.35 million in 2025.
Non-interest expenses declined 4.2% year over year in the fourth quarter to $9.11 million, reflecting lower data processing costs and reduced professional fees. The efficiency ratio improved to 70.81% from 82.62% in the prior-year quarter.
Loan & Deposit Trends
As of Dec. 31, 2025, total assets increased 6.1% year over year to $1.04 billion. Loans, net of allowance for credit losses, rose 3.9% to $661.36 million.
Total deposits grew 6.2% to $937.13 million, driven by a 7.7% increase in core deposits.
Asset Quality & Capital Position
The allowance for credit losses totaled $6.45 million at Dec. 31, 2025, compared with $7.04 million at the end of 2024.
Total non-performing loans were $1.70 million at the end of 2025, up slightly from $1.64 million a year earlier. Non-performing loans to total loans stood at 0.26%.
Stockholders’ equity increased 23.4% year over year to $80.05 million. Book value per share rose to $17.62 from $14.28.
Conclusion
Overall, Bank of the James delivered record annual earnings in 2025, supported by margin expansion, lower interest expenses, steady loan and deposit growth, and improved operating efficiency. Strength in wealth management revenues and disciplined cost control further enhanced profitability, while solid capital levels and stable asset quality metrics position the company on a firm footing in 2026.
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Margin Gains & Core Deposit Growth Drive BOTJ's Solid Q4 Earnings
Shares of Bank of the James Financial Group, Inc. (BOTJ - Free Report) have gained 2.1% since reporting fourth-quarter 2025 results. The company’s results reflect solid fundamental momentum, driven by higher net interest income, expanding margins and disciplined expense management. Record annual earnings and steady balance sheet growth further underscore BOTJ’s improving operating performance. Read our earnings blog: BOTJ Q4 Earnings Rise Y/Y on Strong Margins & Lower Costs
Banking Operations of Bank of the James
BOTJ operates as the holding company for Bank of the James, a full-service commercial and retail bank headquartered in Lynchburg, VA, serving multiple Virginia markets. The company also provides investment advisory services through Pettyjohn, Wood & White, Inc. (“PWW”).
Performance is primarily driven by net interest income, loan and deposit growth, wealth management fees, and expense discipline. In 2025, the company benefited from improved deposit pricing management, higher loan yields and the retirement of capital notes, which helped reduce interest expenses and expand margins.
BOTJ’s Q4 Earnings
For the fourth quarter of 2025, BOTJ reported net income of $2.72 million, up from $1.62 million in the year-ago quarter. Earnings per share increased to $0.60 from $0.36.
For 2025, net income rose 13.6% to a record $9.02 million from $7.94 million in 2024. Earnings per share improved to $1.99 from $1.75.
Net interest income grew 11.1% year over year to $8.54 million in the fourth quarter. For the full year, net interest income increased 12.2% to $32.81 million from $29.24 million in 2024.
The net interest margin expanded to 3.44% in the fourth quarter from 3.18% a year earlier. For 2025, the margin improved to 3.39% from 3.11% in 2024.
Non-interest income increased 13.3% in the quarter to $4.33 million and rose 4.7% for the year to $15.85 million. Wealth management fees from PWW climbed 10.4% year over year to $5.35 million in 2025.
Non-interest expenses declined 4.2% year over year in the fourth quarter to $9.11 million, reflecting lower data processing costs and reduced professional fees. The efficiency ratio improved to 70.81% from 82.62% in the prior-year quarter.
Loan & Deposit Trends
As of Dec. 31, 2025, total assets increased 6.1% year over year to $1.04 billion. Loans, net of allowance for credit losses, rose 3.9% to $661.36 million.
Total deposits grew 6.2% to $937.13 million, driven by a 7.7% increase in core deposits.
Asset Quality & Capital Position
The allowance for credit losses totaled $6.45 million at Dec. 31, 2025, compared with $7.04 million at the end of 2024.
Total non-performing loans were $1.70 million at the end of 2025, up slightly from $1.64 million a year earlier. Non-performing loans to total loans stood at 0.26%.
Stockholders’ equity increased 23.4% year over year to $80.05 million. Book value per share rose to $17.62 from $14.28.
Conclusion
Overall, Bank of the James delivered record annual earnings in 2025, supported by margin expansion, lower interest expenses, steady loan and deposit growth, and improved operating efficiency. Strength in wealth management revenues and disciplined cost control further enhanced profitability, while solid capital levels and stable asset quality metrics position the company on a firm footing in 2026.