Bank of the James Financial Group, Inc. (NASDAQ:BOTJ) reported first‑quarter 2026 results that surpassed expectations, with earnings per share of $0.61 and total revenue of $12.70 million, a 15.4% increase from the same period last year. Net income rose to $2.77 million, up 38.3% from $842,000 in Q1 2025, reflecting a combination of higher interest income and disciplined cost management.
Net interest income reached $8.73 million, up 13.2% year‑over‑year, while non‑interest income grew 20.7% to $3.96 million. The net interest margin expanded to 3.57% from 3.25% in Q1 2025, driven by lower funding costs, higher asset yields, and the successful renegotiation of the core data‑processing contract that reduced operating expenses.
The community banking segment contributed $2.49 million of pre‑tax income, a 38.9% increase, supported by gains of $1.20 million on loan sales and $1.41 million in wealth‑management fees from Pettyjohn, Wood & White. Total assets climbed to $1.06 billion, up 4.9% from $1.039 billion at the end of Q4 2025, and deposits rose to $956.6 million, also up 4.9% from $937.13 million at year‑end 2025.
Credit quality remained strong, with non‑performing loans at 0.22% of total loans—down from 0.29% reported in the prior quarter—and an allowance for credit losses of $6.20 million. The improvement reflects continued focus on underwriting discipline and effective risk monitoring.
Management highlighted significant cost controls, noting a $377,000 reduction in data‑processing expense and a $913,000 decline in professional and outside expense. These savings contributed to an improved efficiency ratio and support the company’s margin expansion strategy.
The board reaffirmed its full‑year guidance, maintaining expectations for continued margin growth and asset expansion as interest rates stabilize. A quarterly dividend of $0.10 per share will be paid in June 2026, underscoring confidence in the bank’s capital position.
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