BOTJ

Shares of Bank of the James Financial Group, Inc. BOTJ have declined 2.7% since reporting second-quarter 2026 results, underperforming the S&P 500 index’s return of 2.6%. Despite the post-earnings weakness, the stock has performed well over the past month, rising 6.3% against the S&P 500’s 1% decline, indicating that investors have been constructive on the company’s broader operating momentum. Bank of the James reported second-quarter 2026 net income of $3.24 million, up 19.8% from $2.70 million in the year-ago quarter. Earnings per share increased to 71 cents from 60 cents, reflecting stronger profitability. Net interest income rose 12.2% year over year to $9.25 million, while net interest income after the provision for credit losses increased 1.4% to $8.90 million due to a higher credit-loss provision than a year earlier. Total interest income increased 5.6% to $12.29 million, while interest expenses declined 10.5% to $3.03 million. Non-interest income rose 9.8% to $4.48 million, supported by stronger fee-based businesses, while non-interest expenses declined 1.5% to $9.31 million, contributing to improved operating leverage. Bank of the James Financial Group, Inc. price-consensus-eps-surprise-chart | Bank of the James Financial Group, Inc. Quote Bank of the James ended the quarter with total assets of $1.04 billion, up from $1 billion a year earlier. Net loans increased to $686.1 million from $649.1 million at June 30, 2025, while total deposits grew to $935.2 million from $910.5 million. Stockholders' equity rose to $83.2 million from $71.7 million a year ago, lifting book value per share to $18.30 from $15.77. Asset quality remained solid. Non-performing loans declined to $1.09 million from $1.85 million a year earlier, reducing the ratio of non-performing loans to total loans to 0.16% from 0.28%. The allowance for credit losses totaled $6.60 million, providing coverage of more than six times non-performing loans. Meanwhile, the tax-equivalent net interest margin expanded to 3.71% from 3.45%, reflecting lower funding costs and improved asset yields. The efficiency ratio improved to 67.82% from 76.71%, indicating better expense control relative to revenue generation. The company's revenue improvement was supported by multiple business lines. Wealth management fees generated through Pettyjohn, Wood & White increased 12.8% year over year to $1.47 million. Service charges, fees and commissions also increased, while gains from loan sales remained relatively stable. Management noted that lower deposit costs and the retirement of approximately $10 million in capital notes during the second quarter of 2025 helped reduce interest expenses, contributing to margin expansion. Lower rates on renewed certificates of deposit and disciplined pricing of interest-bearing transaction accounts also supported funding costs. On the expense side, professional services and data processing costs declined, offsetting modest increases in salaries, employee benefits and occupancy-related expenses. Overall, non-interest expenses decreased despite continued investment in operations, helping improve profitability. Chief executive officer Robert R. Chapman III described the first half of 2026 as producing record results for Bank of the James. He attributed the performance to loan growth, diversified revenue generation and continued strong asset quality while emphasizing the bank's commitment to serving individuals and businesses across its markets, including underserved communities. President Mike Syrek highlighted continued efforts to improve operating efficiency through disciplined expense management and operational enhancements. He said that these initiatives contributed to the stronger efficiency ratio and management continues to identify opportunities to operate more effectively while supporting long-term growth. Syrek also pointed to robust loan growth during the second quarter, with loan balances increasing nearly $37 million. However, he cautioned that such growth is unlikely to be sustained every quarter because lending activity naturally fluctuates with originations, repayments and maturities. He added that management remains focused on originating attractive loans while maintaining disciplined underwriting standards, which has also supported improved asset quality. Bank of the James' board of directors approved a quarterly cash dividend of 10 cents per common share on July 28, 2026. The dividend will be paid out on Sept. 4, 2026, to shareholders of record as of Aug. 21, 2026. Management stated that it intends to build on the strong first-half performance while continuing to pursue lending opportunities and maintain disciplined underwriting and expense management. It also noted that quarterly loan growth is expected to vary, based on market activity and customer demand rather than continue at the exceptionally strong second-quarter pace. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Bank of the James Financial Group, Inc. (BOTJ): Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Bank of the James Reports First Half 2026 Net Income of $6.01 Million, $1.32 Per Share LYNCHBURG, Va., July 30, 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-month and six-month periods ended June 30, 2026. The Bank serves Region 2000 (the greater Lynchburg metropolitan statistical area) and the Blacksburg, Buchanan, Charlottesville, Harrisonburg, Lexington, Nellysford, Roanoke, and Wytheville, Virginia markets. Second Quarter 2026 and First Half 2026 Highlights Net income for the second quarter of 2026 was $3.24 million, an increase of $0.54 million from $2.70 million in the second quarter of 2025. Earnings per share were $0.71 compared with $0.60 per share one year earlier. Net income for the first half of 2026 was $6.01 million, an increase of $2.47 million from $3.55 million in the first half of 2025. Earnings per share were $1.32 compared with $0.78 per share one year earlier. The year-over-year increases reflect higher net interest income, growth in noninterest income, and lower noninterest expense. Total assets were $1.041 billion at June 30, 2026, compared with $1.039 billion at December 31, 2025, and $1.004 billion at June 30, 2025. Net interest income after provision for (recovery of) credit losses increased 1.4% to $8.90 million in the second quarter of 2026 from $8.78 million in the second quarter of 2025, and increased 8.7% to $17.78 million in the first half of 2026 from $16.36 million in the first half of 2025. The Company recorded a total provision for credit losses of $350,000 for the second quarter and $204,000 for the first half of 2026. Excluding reductions in the reserve for unfunded commitments, the provision for credit losses on loans were $410,000 and $318,000, respectively. Net interest margin (tax-equivalent) was 3.71% for the second quarter of 2026 compared with 3.44% for the second quarter of 2025, and 3.64% for the first half of 2026 compared with 3.34% for the first half of 2025. Interest expense decreased 10.5% to $3.03 million in the second quarter of 2026 from $3.39 million in the second quarter of 2025, and decreased 10.9% to $6.15 million in the first half of 2026 from $6.90 million in the first half of 2025, reflecting lower deposit costs and the retirement of approximately $10 million in capital notes in the second quarter of 2025. The decline in deposit costs was driven primarily by lower rates on renewing certificates of deposit and continued discipline in the pricing of interest-bearing transaction accounts. Noninterest income increased 9.8% to $4.48 million in the second quarter of 2026 from $4.08 million in the second quarter of 2025, and increased 14.7% to $8.44 million in the first half of 2026 from $7.36 million in the first half of 2025. Noninterest expense decreased 1.5% to $9.31 million in the second quarter of 2026 from $9.46 million in the second quarter of 2025, and decreased 3.1% to $18.68 million in the first half of 2026 from $19.28 million in the first half of 2025. Wealth management fees from PWW increased 12.8% to $1.47 million in the second quarter of 2026 from $1.30 million in the second quarter of 2025, and increased 12.7% to $2.88 million in the first half of 2026 from $2.56 million in the first half of 2025. The efficiency ratio (noninterest expense divided by the sum of net interest income and noninterest income) improved to 67.82% in the second quarter of 2026 from 76.71% in the second quarter of 2025, and to 70.67% in the first half of 2026 from 82.65% in the first half of 2025. Loans, net of the allowance for credit losses, were $686.08 million at June 30, 2026, compared with $649.13 million at March 31, 2026, $661.36 million at December 31, 2025, and $649.09 million at June 30, 2025. Total deposits were $935.18 million at June 30, 2026, compared with $937.13 million at December 31, 2025, and $910.53 million at June 30, 2025. Nonperforming loans were $1.09 million at June 30, 2026, down from $1.70 million at December 31, 2025. The allowance for credit losses was $6.60 million at June 30, 2026, compared with $6.45 million at December 31, 2025, and represented 6.05x coverage of nonperforming loans, compared with 3.79x at December 31, 2025.  The decrease in nonperforming loans was due primarily to the return to accrual status for select relationships. Stockholders’ equity increased to $83.15 million at June 30, 2026, from $80.05 million at December 31, 2025, an increase of 3.88%. Book value per share rose to $18.30 from $17.62. On July 28, 2026, the Company’s board of directors approved a quarterly dividend of $0.10 per common share to stockholders of record as of August 21, 2026, to be paid on September 4, 2026. Commentary from Executive Management Robert R. Chapman III, CEO of the Bank, commented: “The first half of 2026 produced record results for Bank of the James. Growth in loans and revenue from a variety of sources, along with continued sound asset quality, contributed to this performance. We remain focused on building upon these results during the remainder of 2026. In addition to our focus on financial performance, we continue to place great importance on serving a broad base of customers across our markets, including individuals and businesses in underserved areas. We are proud of the role the Bank and our employees play in supporting the communities we serve.” Mike Syrek, President of the Bank, added: “We remain focused on increasing operating efficiency through prudent expense management and thoughtful operational changes. This strategy has been successful, contributing to an improved efficiency ratio, and we continue to identify additional opportunities to operate more effectively while supporting our customers and long-term growth.” Syrek continued: “Loan growth was robust, with loan balances increasing by nearly $37 million during the second quarter. We do not expect this pace of growth to continue, as quarterly loan activity can vary based on originations, maturities, and repayments. Nevertheless, the current environment presents opportunities to originate attractive, well-structured loans, and we remain focused on pursuing those opportunities while maintaining our disciplined underwriting standards. That same discipline is reflected in our asset quality, with nonperforming loans declining.” About the CompanyBank 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 serves 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. Cautionary Statement Regarding Forward-Looking Statements 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

Shares of Bank of the James Financial Group, Inc. (BOTJ) have gained 2.6% since reporting results for the first quarter of 2026, slightly outperforming the S&P 500 index’s 2% return. Over the past month, the stock has advanced 11.6%, outpacing the broader market’s 10.5% increase, indicating a modestly stronger investor response relative to the benchmark. The company reported a solid year-over-year earnings improvement in its first-quarter 2026 results, driven by stronger core income streams and lower expenses. Net income rose sharply to $2.77 million from $842,000 in the prior-year quarter, representing a 229.45% increase. Earnings per share similarly climbed to 61 cents from 19 cents in the year-ago quarter. The rally was supported by higher net interest income, which increased 13.15% to $8.73 million, and a 20.74% rise in non-interest income to $3.96 million. Total revenues (net interest income plus non-interest income) grew 15.40% year over year, while non-interest expenses declined 4.69% to $9.37 million, reflecting improved cost efficiency. Bank of the James Financial Group, Inc. price-consensus-eps-surprise-chart | Bank of the James Financial Group, Inc. Quote The company demonstrated improvement across several key banking metrics. Net interest margin expanded to 3.57% from 3.25% a year earlier, reflecting higher asset yields, combined with a reduction in funding costs. Interest expenses declined 11.38% to $3.12 million, aided by lower deposit costs and the retirement of capital notes in 2025. Asset quality also improved, with non-performing loans decreasing to $1.45 million from $1.80 million a year ago. This represented 0.22% of the total loans, down from 0.28% in the prior-year period. The allowance for credit losses stood at $6.20 million, providing strong coverage of 4.28 times non-performing loans. The company recorded a recovery of credit losses of $146,000 compared with a $137,000 provision in the year-ago quarter, signaling improved credit conditions. Balance sheet growth remained steady. Total assets increased 4.89% year over year to $1.06 billion. Deposits rose 4.92% to $956.55 million, supported by growth in core deposit balances, while loans, net of allowance, inched up 1.05% to $649.13 million. Stockholders’ equity climbed 18.93% to $81.28 million and book value per share improved to $17.89 from $15.04 a year earlier. Management emphasized that the quarter’s performance reflected a combination of revenue growth and disciplined cost control. CEO Robert R. Chapman III described the results as the company’s “best first quarter” in more than 26 years, noting improvements in efficiency and strong performance from front-line staff. The efficiency ratio improved significantly to 73.75% from 89.31% a year ago, driven by higher revenue and lower operating costs. President Mike Syrek pointed to reduced data processing expenses following a renegotiated core systems contract, along with lower professional service costs than the prior year. Earnings expansion was underpinned by interest and non-interest income growth. Higher yields on loans and securities, along with growth in average earning assets, contributed to a 5.47% increase in total interest income to $11.85 million. Non-interest income gains were broad-based. Mortgage banking activity strengthened, with gains on loan sales rising by $359,000 due to higher origination volumes. Wealth management fees from subsidiary Pettyjohn, Wood & White increased 12.59% to $1.41 million, supported by growth in assets under management to $1.01 billion. Additionally, the company recognized $131,000 in income from an SBIC fund investment. Expense reductions also played a key role. Professional and outside expenses fell significantly, and data processing costs dropped 44.2%, reflecting both one-time prior-year consulting expenses and lower ongoing costs under the revised contract. These savings were partially offset by higher salaries and benefits tied to increased production and incentive compensation. In the first quarter, the company’s board declared a quarterly cash dividend of 10 cents per share, payable in June 2026 to shareholders of record as of May 22, 2026. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Bank of the James Financial Group, Inc. (BOTJ): Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Bank of the James Reports First Quarter 2026 Net Income of $2.77 Million, or $0.61 Per Share LYNCHBURG, Va., April 30, 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-month period ended March 31, 2026. The Bank serves Region 2000 (the greater Lynchburg metropolitan statistical area) and the Blacksburg, Buchanan, Charlottesville, Harrisonburg, Lexington, Nellysford, Roanoke, and Wytheville, Virginia markets. First Quarter 2026 Highlights Net income for the first quarter of 2026 was $2.77 million, an increase of $1.93 million from $842,000 in the first quarter of 2025. Earnings per share were $0.61 compared with $0.19 a year earlier. The year-over-year increase reflects higher net interest income, growth in noninterest income, and lower noninterest expense. Total assets were $1.06 billion at March 31, 2026, up $49.46 million, or 4.89%, from $1.01 billion at March 31, 2025. Loans, net of the allowance for credit losses, were $649.13 million at March 31, 2026, compared with $661.36 million at December 31, 2025. Total deposits were $956.55 million at March 31, 2026, compared with $937.13 million at December 31, 2025. Net interest income increased 13.15% to $8.73 million in the first quarter of 2026 from $7.72 million in the first quarter of 2025. Net interest margin for the three months ended March 31, 2026 was 3.57% compared with 3.25% for the three months ended March 31, 2025. Interest expense decreased 11.38% in the first quarter of 2026 to $3.12 million from $3.52 million in the first quarter of 2025, reflecting lower deposit costs and the retirement of capital notes in the second quarter of 2025. Efficiency ratio (non-interest expense divided by the sum of net interest income and noninterest income) improved to 73.75% in the first quarter of 2026 from 89.31% in the first quarter of 2025, as revenue growth of 15.40% was paired with a 4.69% decline in noninterest expense. Wealth management fees from PWW increased 12.59% to $1.41 million in the first quarter of 2026 from $1.26 million in the first quarter of 2025. Stockholders’ equity increased to $81.28 million at March 31, 2026 from $80.05 million at December 31, 2025, an increase of 1.54%. Book value per share rose to $17.89 from $17.62. Nonperforming loans were $1.45 million at March 31, 2026, down from $1.70 million at December 31, 2025 and $1.80 million at March 31, 2025. The allowance for credit losses was $6.20 million at March 31, 2026, representing 4.28x coverage of nonperforming loans. On April 28, 2026, the Company’s board of directors approved a quarterly dividend of $0.10 per common share to stockholders of record as of May 22, 2026, to be paid on June 5, 2026. First Quarter 2026 Operational Review Robert R. Chapman III, CEO of the Bank, commented: “First quarter results were strong, driven by continued efficiency improvements, our investment in front-line teammates, including our commission-based producers, who continue to perform at a high level, as reflected in a lower cost of deposits, higher net interest income, and higher noninterest income. We posted a return on assets above 1% and a return on equity of nearly 14%, maintained strong asset quality, and remained well-capitalized across all measures. In over 26 years, this is our best first quarter.” Revenue, defined as the sum of net interest income and noninterest income, grew 15.40% year over year, while noninterest expense declined 4.69%. The combination drove the efficiency ratio to 73.75% in the first quarter of 2026, compared with 89.31% in the same period a year ago. Mike Syrek, President of the Bank, added: “Data processing expense declined $377,000, or 44.2%, as costs normalized under our amended contract with our core provider. On the revenue side, our mortgage division generated $1.20 million in gains on sales of loans held for sale, and Pettyjohn, Wood & White contributed $1.41 million in wealth management fees, up 12.59% year over year.” Net interest income for the first quarter of 2026 was $8.73 million, up 13.15% from $7.72 million in the first quarter of 2025. Total interest income was $11.85 million in the first quarter of 2026 compared with $11.23 million a year earlier, reflecting higher yields on loans and securities and growth in average interest-earning assets. Total interest expense in the first quarter of 2026 declined 11.38% to $3.12 million compared with $3.52 million in the first quarter of 2025. The decline reflected lower rates paid on NOW, money market and savings deposits, and the elimination of capital note interest following the retirement of approximately $10.05 million in capital notes at the end of the second quarter of 2025. Net interest margin rose to 3.57% in the first quarter of 2026 from 3.25% in the first quarter of 2025, as higher asset yields were paired with a lower cost of interest-bearing liabilities. Noninterest income in the first quarter of 2026 was $3.96 million compared with $3.28 million in the first quarter of 2025, an increase of 20.74%. The year-over-year growth was driven by a $359,000 increase in gains on sale of loans held for sale, reflecting higher origination and sales volumes in the mortgage division; a $158,000 increase in wealth management fees from PWW, driven by growth in assets under management from $886.9 million at March 31, 2025 to $1.01 billion at March 31, 2026; and $131,000 of income from an SBIC fund investment. Noninterest expense in the first quarter of 2026 was $9.37 million compared with $9.82 million a year earlier, a decrease of 4.69%. Professional and other outside expense declined $913,000, or 54.2%, to $770,000, and data processing expense declined $377,000, or 44.2%, to $475,000. Both reductions are attributable to the Company's core processing contract renegotiation, as consulting fees incurred in connection with the negotiation process were concentrated in the prior year period and the new contract terms resulted in meaningfully lower ongoing data processing costs. These reductions were partially offset by a $725,000 increase in salaries and employee benefits, reflecting market compensation adjustments and higher commission expense associated with increased production volumes, as well as performance-based incentive accruals. The Company recorded a $146,000 recovery of credit losses in the first quarter of 2026, compared with a $137,000 provision in the first quarter of 2025. Balance Sheet: Asset Growth Total assets were $1.06 billion at March 31, 2026 compared with $1.01 billion at March 31, 2025. Syrek commented: “Total assets reached $1.06 billion at quarter end, and deposits grew 4.92% year over year to $956.55 million. Core deposit balances increased, and time deposits were essentially flat from year end. Credit quality remained sound: nonperforming loans declined to $1.45 million from $1.70 million at year end and $1.80 million a year ago, representing 0.22% of total loans, and the allowance for credit losses was $6.20 million at quarter end.” Syrek continued, “Several large payoffs and line reductions reduced loan balances and, together with solid deposit growth, provided funds to increase our investment portfolio and improve portfolio yield.” Loans, net of allowance for credit losses, were $649.13 million at March 31, 2026 compared with $642.39 million at March 31, 2025, an increase of $6.75 million, or 1.05%. The allowance for credit losses was $6.20 million at March 31, 2026 and $7.02 million at March 31, 2025. Total deposits were $956.55 million at March 31, 2026 compared with $911.68 million at March 31, 2025, an increase of $44.87 million, or 4.92%. Core deposits (noninterest bearing demand deposits, NOW, money market and savings) were $721.66 million at March 31, 2026, and time deposits were $234.89 million. Stockholders’ equity rose to $81.28 million at March 31, 2026 from $68.35 million at March 31, 2025, an increase of 18.93%. Retained earnings were $52.33 million at March 31, 2026, compared with $50.01 million at December 31, 2025. Book value per share rose to $17.89 at March 31, 2026 from $17.62 at December 31, 2025. 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. Cautionary Statement Regarding Forward-Looking Statements 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 data) Bank of the James Financial Group, Inc. and Subsidiaries Consolidated Statements of Operation (dollar amounts in thousands, except per share data) (unaudited) Bank of the James Financial Group, Inc. and Subsidiaries Dollar amounts in thousands, except per share data unaudited

Shares of Bank of the James Financial Group, Inc. BOTJ 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 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. 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. 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. 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. 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. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Bank of the James Financial Group, Inc. (BOTJ): Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Shares of Bank of the James Financial Group, Inc. BOTJ have gained 2.1% since the company reported its earnings for the fourth quarter of 2025. This compares to the S&P 500 Index’s 0.2% decline over the same time frame. Over the past month, the stock has rallied 13% compared to the S&P 500’s 0.9% drop, indicating notable outperformance versus the broader market following the earnings release. For the fourth quarter of 2025, Bank of the James reported net income of $2.72 million, up 68.3% from $1.62 million in the year-ago quarter. Earnings per share for the quarter rose to 60 cents from 36 cents a year earlier. For full-year 2025, net income reached a record $9.02 million, an increase of 13.6% from $7.94 million in 2024, while full-year EPS improved to $1.99 from $1.75, also a 13.6% gain. Net interest income for the fourth quarter jumped 11.1% year over year to $8.54 million and climbed 12.2% to $32.81 million for the full year. Total noninterest income rose 13.3% in the quarter and 4.7% for the year, reflecting growth across multiple fee-based categories. Bank of the James Financial Group, Inc. price-consensus-eps-surprise-chart | Bank of the James Financial Group, Inc. Quote Balance-sheet growth remained steady during the year. Total assets increased 6.1% year over year to $1.04 billion as of Dec. 31, 2025. Loans, net of allowance for credit losses, rose 3.9% to $661.36 million, while total deposits grew 6.2% to $937.13 million, driven largely by a 7.7% increase in core deposits. Stockholders’ equity increased 23.4% to $80.05 million, supported by retained earnings growth and improved valuations in the available-for-sale securities portfolio. Book value per share rose to $17.62 from $14.28 a year earlier. Profitability metrics also improved, with return on average assets at 1.04% for the quarter compared with 0.63% a year ago, and return on average equity rising to 13.89% from 9.39%. Management highlighted both revenue momentum and expense discipline as key drivers of the improved results. CEO Robert R. Chapman III noted that margin improvement stemmed from active management of deposit pricing and loan yields, along with a decline in interest expense following the retirement of approximately $10.05 million in capital notes earlier in the year. President Mike Syrek emphasized that vendor renegotiations and lower professional fees reduced noninterest expense in the fourth quarter and are expected to provide ongoing savings into 2026. Both executives underscored efficiency improvement as a continuing focus. Higher net interest income was supported by improved net interest margin, which expanded to 3.44% in the fourth quarter from 3.18% a year earlier. Interest expense declined 12.1% in the quarter and 10.1% for 2025, reflecting lower deposit costs, an easing rate environment and the retirement of capital notes. Noninterest income growth was driven primarily by gains on the sale of loans held for sale, higher wealth management fees from the Pettyjohn, Wood & White subsidiary and increased service charges. On the expense side, noninterest expense declined 4.2% year over year in the quarter due to lower data processing costs and reduced professional fees, though full-year noninterest expense rose 7% as higher salaries, benefits and investments in new banking facilities outweighed cost savings in other areas. During the quarter, the most notable balance sheet action was the earlier retirement of capital notes, which contributed to lower interest expense and improved margins. Apart from this capital management step, the company’s activities during the period were centered on organic growth in loans, deposits and wealth management services rather than structural changes to the business. The company suggested continued focus on pricing, cost control and credit discipline. Executives indicated that expense savings achieved through vendor negotiations and process improvements are expected to persist in the coming year, while efficiency gains remain a strategic priority. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Bank of the James Financial Group, Inc. (BOTJ): Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Bank of the James Reports 2025 Net Income of $9.02 Million; Record Annual Earnings; Improved Metrics 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. Cautionary Statement Regarding Forward-Looking Statements 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) Bank of the James Financial Group, Inc. and Subsidiaries Consolidated Statements of Income (dollar amounts in thousands, except per share amounts) (unaudited) Bank of the James Financial Group, Inc. and Subsidiaries Dollar amounts in thousands, except per share data Unaudited

Shares of Bank of the James Financial Group, Inc. BOTJ have gained 4.6% since reporting third-quarter 2025 results, outperforming the S&P 500 Index’s 0.6% decline over the same period. Over the past month, the stock has climbed 8%, outperforming the broader market’s 1.9% growth, reflecting investors’ favorable reaction to the company’s record quarterly results and margin expansion. For the third quarter ended Sept. 30, 2025, Bank of the James delivered record net income of $2.75 million, marking a 38.3% increase from $1.99 million in the year-ago quarter. Earnings per share rose to 61 cents from 44 cents, while EPS for the first nine months of 2025 was flat at $1.39 compared with the same period in 2024. Total interest income for the quarter inched up 1.8% year over year to $11.77 million, and increased 4.9% to $34.64 million for the first nine months of 2025. Modest revenue growth was supported by higher loan yields and strong commercial real estate lending activity. Net interest income advanced 10.5% year over year to $8.30 million for the quarter and 12.6% to $24.27 million for the first nine months of 2025, underscoring effective rate and balance sheet management. Bank of the James Financial Group, Inc. price-consensus-eps-surprise-chart | Bank of the James Financial Group, Inc. Quote The company’s net interest margin expanded 28 basis points to 3.44% in the third quarter of 2025 from 3.16% a year earlier. The interest spread also improved to 3.15% from 2.81%, aided by reduced funding costs and disciplined deposit pricing. Total interest expenses fell 14.3% to $3.47 million from $4.05 million in the prior-year quarter due to the retirement of $10 million in capital notes in the second quarter of 2025. Non-interest income rose 9% year over year to $4.17 million, driven by gains on mortgage loan sales; wealth management fees from Pettyjohn and Wood & White; and service fees from treasury and debit card activities. However, non-interest expenses increased 4.4% to $9.16 million, reflecting higher salaries, consulting fees and costs associated with new banking facilities. Despite this, the efficiency ratio improved to 73.46% from 77.44%, showing enhanced operating leverage. Return on average assets climbed to 1.07% from 0.80%, and return on equity improved to 15.24% from 12.86%, highlighting stronger profitability metrics. CEO Robert R. Chapman III attributed the record performance to “disciplined focus on fundamentals,” emphasizing strategic management of loan yields, controlled interest expenses and the successful retirement of the company’s capital notes. He noted that the diversified revenue base, spanning commercial banking, wealth management, cash management and mortgage originations, supported sustainable earnings even amid economic uncertainty. President Mike Syrek added that the bank’s asset growth above $1 billion and the exceptionally low non-performing loan ratio of 0.29% underscored its prudent credit management and strong market positioning. Earnings growth was primarily fueled by expanding net interest margins and stable non-interest revenues. The easing interest rate environment in the quarter supported lower funding costs, while upward adjustments on variable-rate commercial and residential loans improved yields on earning assets, which rose to 4.88% from 4.86% in the prior year. Credit quality remained robust, with the allowance for credit losses declining to $6.30 million from $7.04 million at the end of 2024 due to model refinements in the company’s current expected credit loss methodology. Non-performing loans totaled $1.90 million, representing just 0.29% of total loans, indicative of exceptional asset quality. The balance sheet showed broad-based strength. Total assets reached $1.02 billion, up 4.2% since December 2024, while total deposits rose 4.2% to $919.8 million, reflecting growth in low-cost core deposits. Loans, net of allowance, increased to $653.29 million, led by commercial real estate lending. 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. Management expressed optimism about sustaining profitability through disciplined balance sheet management and prudent credit practices. The statement accompanying the results indicated that the company expects continued margin stability as rate pressures ease and loan demand in its regional markets remains resilient. Management reaffirmed its commitment to maintaining high asset quality and expanding its presence across Virginia through strategic investments in people and facilities. In the quarter, Bank of the James extinguished approximately $10 million in capital notes, improving its funding profile and reducing interest expenses. This move strengthened the balance sheet and contributed to a rebound in the Tier 1 leverage ratio, which improved to 9.02% as of Sept. 30, 2025, after dipping below 9% earlier in the year. The board also declared a quarterly dividend of 10 cents per share, payable on Dec. 5, 2025, to shareholders of record as of Nov. 21, 2025. In summary, Bank of the James delivered its strongest quarter on record, underscored by double-digit net interest income growth, expanding margins and superior asset quality. Cost discipline and the strategic retirement of debt enhanced profitability, positioning the company for continued steady performance. With rising equity, a robust deposit base and a diversified earnings stream, BOTJ appears well-placed to navigate evolving market conditions while maintaining its community banking focus. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Bank of the James Financial Group, Inc. (BOTJ): Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Bank of the James Reports Record Quarterly Earnings and Margin Expansion Loan Growth, Stable Funding Costs, and Exceptional Asset Quality Drive Record Profitability LYNCHBURG, Va., Oct. 30, 2025 (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 month and nine month periods ended September 30, 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. Third Quarter, Year to Date 2025 Highlights Earnings per share were $0.61 and $1.39 per share for the three and nine months, respectively, ended September 30, 2025, compared to $0.44 and $1.39 for the comparable periods in 2024. Total interest income rose to $11.77 million in the third quarter of 2025 compared with $11.56 million a year earlier, an increase of 1.8%. Total interest income rose to $34.64 million in the nine months ended September 30, 2025 compared with $33.01 million in the same period a year earlier, an increase of 4.9%. The growth in both periods primarily reflected higher yields on loans, commercial real estate (CRE) loan growth, and the addition of higher-rate residential mortgages. The average yield earned on loans, including fees, increased meaningfully in both periods of 2025 to 5.70% and 5.65%, respectively, from 5.65% and 5.45% for the comparable 2024 periods. Net interest income increased 10.5% to $8.30 million in the third quarter of 2025, up from $7.51 million a year earlier. In the first nine months of 2025, net interest income increased 12.62% to $24.27 million from $21.55 million a year earlier. Interest expense decreased in the third quarter and first nine months of 2025 to $3.47 million and $10.37 million from $4.05 million and $11.46 million, respectively, for the comparable periods in 2024, reflecting an ongoing focus on rate management. Net interest margin for the three months ended September 30, 2025, was 3.44% compared with 3.16% for the three months ended September 30, 2024. For the nine months ended September 30, 2025, net interest margin increased to 3.37% compared to 3.07% for the nine months ended September 30, 2024. Interest spread for the three and nine months ended September 30, 2025 increased to 3.15% and 3.07%, respectively, from 2.81% and 2.73%, respectively, for the same periods in 2024. Total noninterest income of $4.17 million in the third quarter of 2025 and $11.53 million in the first nine months of 2025 were relatively stable compared with the previous year’s comparable periods. Our noninterest income was driven by continuing strong contributions from commercial treasury services, residential mortgage origination fee income, and wealth management fee income from PWW. Loans, net of the allowance for credit losses, increased to $653.29 million at September 30, 2025 from $636.55 million at December 31, 2024 and $627.11 million a year earlier. Commercial real estate loans (owner occupied and non-owner occupied, including construction loans) led lending activity, increasing to $379.99 million at September 30, 2025 from $359.41 million at December 31, 2024. Measures of asset quality remained strong, highlighted by a ratio of nonperforming loans to total loans of 0.29% at September 30, 2025, with no other real estate owned (OREO). Total assets were $1.02 billion at September 30, 2025 compared with $979.24 million at December 31, 2024. Total deposits were $919.80 million at September 30, 2025, up from $882.40 million at December 31, 2024, reflecting the Bank’s continuing focus on growing core deposits (noninterest bearing demand deposits, NOW, money market and savings). Shareholder value measures included growth in stockholders’ equity to $76.97 million at September 30, 2025 from $64.87 million at December 31, 2024, higher retained earnings, and a book value per share of $16.94, up from $15.77 at June 30, 2025 and $14.28 at December 31, 2024. Tangible book value also increased to $15.10 at September 30, 2025 from $13.90 at June 30, 2025 and $12.34 at December 31, 2024. In the second quarter of 2025, the Company extinguished its issue of approximately $10 million of capital notes, which is having a positive impact on interest expense and the average rate on interest-bearing liabilities. On October 28, 2025, the Company’s board of directors approved a quarterly dividend of $0.10 per common share to stockholders of record as of November 21, 2025 to be paid on December 5, 2025. Third Quarter, First Nine Months of 2025 Operational Review Robert R. Chapman III, CEO of the Bank, commented: “We are extremely proud to report our highest quarterly earnings in company history. This outstanding performance is a direct result of our team’s disciplined focus on fundamentals. By strategically managing loan yields, controlling interest expense, and retiring $10 million in capital notes, we successfully expanded our net interest margin to 3.44%, driving high-quality, sustainable earnings for our shareholders. “A balanced revenue stream from commercial banking, wealth management, cash management services, and mortgage originations has provided financial stability and consistently strong performance, even through economic uncertainty.” Net interest income, excluding provisions to allowance for credit losses and recoveries, for the third quarter of 2025 was $8.30 million, up 10.5% from $7.51 million in the third quarter of 2024. In the first nine months of 2025, net interest income grew $2.72 million, or 12.62%, to $24.27 million from $21.55 million in the first nine months of 2024. Total interest income was $11.77 million in the third quarter of 2025 compared with $11.56 million a year earlier. In the first nine months of 2025, total interest income rose to $34.64 million from $33.01 million in the first nine months of 2024. Year-over-year growth in both 2025 periods was driven largely by higher rates on variable-rate commercial loans and the origination of new loans consistent with current market conditions. Investment portfolio management and appropriate rate increases on loans continued to contribute to year-over-year growth in the yield on total earning assets, which was 4.88% in the third quarter of 2025 compared with 4.86% a year earlier. In the first nine months of 2025, the yield on total earning assets was 4.81% compared with 4.70% a year earlier. Total interest expense in the third quarter of 2025 declined 14.3% to $3.47 million compared with $4.05 million in the third quarter of 2024. In the first nine months of 2025, total interest expense declined to $10.37 million from $11.46 million in the prior year’s first nine months. Lower interest expense in both 2025 periods primarily reflected the moderately easing rate environment and the Bank’s active management of deposit pricing, including time deposits, as well as the retirement of approximately $10.05 million in debt in the second quarter 2025. Net interest margin and interest spread have consistently improved during the past year, reflecting a focus on keeping loan yields on pace with the prevailing interest rate environment, controlling interest expense, and managing our level of borrowings. Net interest margin of 3.44% in the third quarter of 2025 increased from both the first and second quarters of 2025. A moderately easing interest rate environment, combined with the Company’s upward adjustments to floating rate commercial loans and originated and retained residential mortgage rates, contributed to gradual margin pressure relief over the past several quarters. In the third quarter of 2025, the net interest margin was 3.44% compared with 3.16% in the third quarter of 2024, while interest spread increased to 3.15% from 2.81% a year earlier. In the first nine months of 2025, net interest margin was 3.37% and net interest spread was 3.07% compared with 3.07% and 2.73%, respectively, in the first nine months of 2024. Noninterest income in the third quarter of 2025 was $4.17 million compared with $3.82 million in the third quarter of 2024. Noninterest income in the first nine months of 2025 was $11.53 million compared with $11.32 million in the first nine months of 2024. The predominant amount of noninterest income in both periods of 2025 was generated by fees from debit card activity, commercial treasury services, gains on sale of loans held for sale by our mortgage division, and wealth management fees generated by PWW. Noninterest expense in the third quarter of 2025 was $9.16 million compared with $8.78 million a year earlier. In the first nine months of 2025, noninterest expense was $28.44 million compared with $25.60 million in the first nine months of 2024. The increase in both the three and nine-month periods reflected an increase in salaries and employee benefits arising from accruals for anticipated year-end employee compensation, consulting fees incurred in negotiating an amendment to the agreement with a major vendor, the addition of revenue-generating employees, and new banking facilities in strategic locations. The Company filed amended tax returns for fiscal years 2021 through 2024 to correct the classification of tax-exempt income that was previously reported as taxable income. These amendments resulted in a tax overpayment that we applied in the third quarter of 2025, positively impacting our effective tax rate for the period. Balance Sheet: Strong Cash Position, High Asset Quality Total assets were $1.02 billion at September 30, 2025 compared with $979.24 million at December 31, 2024. The increase was due primarily to increases in securities available-for-sale at fair value, and loan growth, primarily commercial real estate loans. Mike Syrek, the Bank’s President, commented: “This quarter, our team delivered on all fronts, growing total assets to over $1.02 billion and increasing our loan portfolio. Most importantly, we achieved this growth while holding firm to our disciplined underwriting standards. Our exceptional asset quality, with a nonperforming loan ratio of just 0.29%, provides a solid foundation for continued, profitable growth and demonstrates our commitment to sound credit management. “Our loan portfolio grew in the third quarter, even with a number of early paydowns. That performance speaks to our reputation in the market and the focus of our loan officers.” Loans, net of allowance for credit losses, were $653.29 million at September 30, 2025 compared with $636.55 million at December 31, 2024, reflecting growth of commercial real estate loans. The allowance for credit losses was $6.30 million at September 30, 2025 and $7.04 million at December 31, 2024. As previously discussed in the Company’s Form 10-Q filed on August 13, 2025, the allowance for credit losses reflects updates made during the second quarter to the quantitative current expected credit losses (CECL) models used for collectively evaluated loan segments. These refinements—developed in collaboration with the Company’s external model vendor—included adjustments to loss-rate parameters, the incorporation of additional post-pandemic loss data, and refreshed economic forecasts. Management believes that the updated model assumptions better align with current credit conditions. These changes helped lead to a decrease in the allowance since December 31, 2024, despite loan growth. Commercial real estate loans (owner-occupied and non-owner occupied, excluding construction loans) totaled $365.62 million at September 30, 2025 compared with $353.53 million at December 31, 2024, reflecting growth from new loans that was partially offset by loan amortizations and payoffs. Of this amount, at September 30, 2025 commercial real estate (non-owner occupied) was $215.80 million and commercial real estate (owner occupied) was $149.82 million. The Bank closely monitors concentrations in those segments and has no commercial real estate loans secured by large office buildings in large metropolitan city centers. Commercial construction and land loans totaled $14.36 million at September 30, 2025, up from $10.68 million at June 30, 2025. The increase primarily reflects the funding of two major construction projects, partially offset by the completion of others. Those loans were down from $23.88 million at December 31, 2024, due to the conclusion of several projects earlier in the year. Residential construction/land loans at September 30, 2025 were $26.52 million, down slightly from $29.04 million at June 30, 2025 and up from $26.15 million at December 31, 2024, reflecting continued home building strength and activity in several markets. Commercial and industrial loans were $61.99 million at September 30, 2025 compared to $66.42 million at December 31, 2024. Residential mortgage loans that the Company intends to keep on the balance sheet totaled $105.67 million at September 30, 2025, down slightly from $111.65 million at December 31, 2024. Growth of those retained mortgages has been minimal, as the Bank has continued to focus on selling the majority of originated mortgage loans to the secondary market. Consumer loans (open-end and closed-end) totaled $85.43 million, compared with $78.31 million at December 31, 2024, and remained relatively stable year-over-year. Ongoing high asset quality continues to have a positive impact on the Company’s financial performance. The ratio of nonperforming loans to total loans at September 30, 2025 was 0.29% compared with 0.25% at December 31, 2024. High asset quality was also reflected in the allowance for credit losses for loans to total loans, which declined to 0.95% at September 30, 2025 from 1.09% at December 31, 2024. While nonperforming loans increased modestly to $1.85 million from $1.64 million at year-end, overall credit quality remains strong. As a result of having no OREO, total nonperforming assets were the same as total nonperforming loans. The Tier 1 leverage ratio at the Bank level was 9.02% at September 30, 2025, reflecting a well-capitalized institution. Mr. Syrek added “Following the retirement of our private placement notes, for the quarter ended June 30, 2025, our Tier 1 capital ratio dropped below 9% to 8.85%. With solid earnings, we moved back above 9% ahead of our timeline. We are proud that we were able to retire this debt without diluting our shareholders. We remained well capitalized under regulatory standards at all times.” Total deposits were $919.80 million at September 30, 2025 compared with $882.40 million at December 31, 2024. Core deposits (noninterest bearing demand deposits, NOW, money market and savings) were $680.96 million compared with $651.90 million at December 31, 2024. Time deposits were relatively stable, up approximately $8.33 million, reflecting the Bank’s focus on growing and retaining lower-cost core deposits. At September 30, 2025 and December 31, 2024, the Bank had no brokered deposits. Key measures of shareholder value continued to trend positively. Stockholders’ equity rose to $76.97 million at September 30, 2025 from $64.87 million at December 31, 2024. Retained earnings increased to $47.74 million at September 30, 2025 from $42.80 million at December 31, 2024. Book value per share rose to $16.94 at September 30, 2025 from $14.28 at December 31, 2024, and continued to reflect quarterly fluctuations in required fair market valuations of the Company’s available-for-sale investment portfolio. Interest rate fluctuations result in adjustments to the fair value in the Company’s available-for-sale securities portfolio (known as “mark-to-market”), which are reflected in accumulated other comprehensive loss. These mark-to-market losses are excluded when calculating the Bank’s regulatory capital ratios. The available-for-sale securities portfolio is composed primarily of securities with explicit or implicit government guarantees, including U.S. Treasuries and U.S. agency obligations, and other highly rated debt instruments. The Company does not expect to realize the unrealized losses, as it has the intent and ability to hold the securities until their recovery, which may be at maturity. Management continues to diligently monitor the creditworthiness of the issuers of the debt instruments within its securities portfolio. 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. Cautionary Statement Regarding Forward-Looking Statements 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: J. Todd Scruggs, Executive Vice President and Chief Financial Officer (434) 846-2000. Bank of the James Financial Group, Inc. and Subsidiaries Consolidated Balance Sheets (dollar amounts in thousands, except per share amounts) Bank of the James Financial Group, Inc. and Subsidiaries Consolidated Statements of Income (dollar amounts in thousands, except per share amounts) (unaudited) Bank of the James Financial Group, Inc. and Subsidiaries Dollar amounts in thousands, except per share data Unaudited

Loan Growth, Asset Quality, Declaration of Quarterly Dividend LYNCHBURG, Va., Aug. 05, 2025 (GLOBE NEWSWIRE) -- In a release issued under the same headline earlier today by Bank of the James Financial Group, Inc. (NASDAQ:BOTJ), please note that typos have been corrected in the 10th bullet point and the "Balance Sheet" section of the narrative, relating to total assets and loan balance amounts; where total assets of $1.04 billion should have been $1.004 billion, and loan balances of $649.09 at June 30, 2025 and $636.55 at December 31, 2024 should have been labeled as "million" amounts. The corrected release follows: 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 month and six month periods ended June 30, 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. Net income for the three months ended June 30, 2025 was $2.70 million or $0.60 per basic and diluted share compared with $2.15 million or $0.47 per basic and diluted share for the three months ended June 30, 2024. Net income for the six months ended June 30, 2025 was $3.55 million or $0.79 per basic and diluted share compared with $4.34 million or $0.95 per basic and diluted share for the six months ended June 30, 2024. Robert R. Chapman III, CEO of the Bank, commented: “Our financial results, and particularly the second quarter 2025 performance, demonstrated continued traction in commercial lending, mortgage originations and core deposits. Strong earnings in the second quarter and first half establish a solid base for continuing positive financial performance as we enter the second half of 2025. “Net interest margin and interest spread have consistently improved during the past year, reflecting a focus on keeping loan yields on pace with the prevailing interest rate environment, controlling interest expense, and managing our level of borrowings. Net interest margin of 3.45% in the second quarter of 2025 was the highest in a number of quarters. “Maintaining high quality interest-earning assets, as seen in our asset quality ratios, continues to support sound margins and quality earnings. Diligent credit management and monitoring has an important role in maintaining exceptional asset quality. “Our strategy of generating interest and noninterest income from a variety of sources has provided financial stability and predictable earnings during the past few years, which have been marked by economic challenges and uncertainty. A balanced revenue stream from commercial and retail banking, and fees from sources such as wealth management, cash management services, mortgage loan originations and more have resulted in consistently strong financial performance and cash generation. “A strong cash position enabled our parent company to achieve a significant milestone in the second quarter as it officially retired approximately $10 million in capital notes. This is expected to reduce our interest expense by approximately $327,000 annually and. in the current interest rate environment, should help lower the overall rate on interest-bearing liabilities. Our financial performance over the years generated the cash position needed to retire this debt, allowing us to avoid refinancing at today's higher interest rates. The Bank continues to be well capitalized, with a Tier 1 leverage ratio of 8.85% at June 30, 2025. “This debt offering provided capital at an important time for the Company and it was accomplished entirely through a private transaction between the Company and a group of investors. As we retire this debt, we wish to thank the numerous local investors who demonstrated their support for, and confidence in, the Company in a very tangible way. “The Company continues building value for shareholders, as evidenced by growth in stockholders’ equity, retained earnings, and significant growth of book value per share in the second quarter. We remain focused on efficient operations, maintaining superior asset quality, and sustainable growth.” Second Quarter, First Half of 2025 Highlights Net income and earnings per share (“EPS”) in the second quarter of 2025 partially reflected a $528,000 recovery of allowance for credit losses. Total interest income rose 6% to $11.64 million in the second quarter of 2025 compared with $10.94 million a year earlier. In the first half of 2025, total interest income was $22.87 million, up 7% from $21.44 million a year earlier. The growth in both periods primarily reflected higher yields on loans, commercial real estate (CRE) growth, and the addition of higher-rate residential mortgages. The average yield earned on loans, including fees, increased meaningfully in both periods of 2025 from the comparable 2024 periods. Net interest income after recovery of credit losses was $8.78 million in the second quarter of 2025, up 22% from a year earlier. In the first half of 2025, net interest income after recovery of credit losses was $16.36 million, up 11% from $14.72 million a year earlier. Interest expense in the second quarter and first half of 2025 declined 12% and 7%, respectively, compared with the second quarter and first half of 2024, respectively, reflecting ongoing rate management and a focus on growing lower cost core deposits. Net interest margin in the second quarter of 2025 rose to 3.45% compared with 3.02% a year earlier and 3.25% in the first quarter of 2025. In the first half of 2025, net interest margin increased to 3.34% compared to 3.02% in the first half of 2024. Interest spread in the second quarter and first half of 2025 increased significantly from the prior year’s periods. Total noninterest income of $4.08 million in the second quarter of 2025 and $7.36 million in the first half of 2025 were relatively stable compared with the previous year’s periods, primarily reflecting continuing strong contributions from commercial treasury services, residential mortgage origination fee income, and wealth management fee income from PWW. Loans, net of the allowance for credit losses, increased to $649.09 million at June 30, 2025 from $636.55 million at December 31, 2024 and $616.09 million a year earlier. Commercial real estate loans (owner occupied and non-owner occupied) led lending activity, increasing to $355.67 million from $335.53 million at December 31, 2024. Measures of asset quality remained strong, highlighted by a ratio of nonperforming loans to total loans of 0.28% at June 30, 2025, with no other real estate owned (OREO). Total assets were $1.004 billion at June 30, 2025 compared with $979.24 million at December 31, 2024. Total deposits were $910.53 million at June 30, 2025, up from $882.40 million at December 31, 2024, reflecting the Bank’s continuing focus on growing core deposits (noninterest bearing demand deposits, NOW, money market and savings). Shareholder value measures included growth in stockholders’ equity to $71.67 million at June 30, 2025 from $64.87 million at December 31, 2024, higher retained earnings, and a book value per share of $15.77, up from $14.28 at December 31, 2024. In the second quarter of 2025, the parent company extinguished its issue of approximately $10 million of capital notes, which will have a positive impact on interest expense and the rate on interest-bearing liabilities. On July 12, 2025, the Company’s board of directors approved a quarterly dividend of $0.10 per common share to stockholders of record as of September 12, 2025 to be paid on September 26, 2025. Second Quarter, First Half of 2025 Operational Review Net interest income for the second quarter of 2025 was $8.25 million, up 16% from $7.09 million in the second quarter of 2024. In the first half of 2025, net interest income grew 14% to $15.97 million from $14.04 million in the first half of 2024. Total interest income was $11.64 million in the second quarter of 2025 compared with $10.94 million a year earlier. In the first half of 2025, total interest income rose to $22.87 million from $21.44 million in the first half of 2024. The year-over-year increases in both 2025 periods primarily reflected upward rate adjustments to variable rate commercial loans and new loans reflecting the prevailing rate environment. Investment portfolio management and appropriate rate increases on loans continued to contribute to year-over-year growth in the yield on total earning assets, which was 4.86% in the second quarter of 2025 compared with 4.68% a year earlier. In the first half of 2025, the yield on total earning assets was 4.79% compared with 4.62% a year earlier. Total interest expense in the second quarter of 2025 declined 12% to $3.39 million compared with $3.84 million in the second quarter of 2024. In the first half of 2025, total interest expense declined to $6.90 million from $7.40 million in the prior year’s first half. Lower interest expense in both periods of 2025 primarily reflected a relatively stable interest rate environment and the Bank’s management of rates paid on interest-bearing deposits, including time deposits. A generally stable interest rate environment and the Company’s upward adjustments to floating rate commercial loans and rates on originated and retained residential mortgages contributed to gradual margin pressure relief during the past several quarters. In the second quarter of 2025, the net interest margin was 3.45% compared with 3.02% in the second quarter of 2024, while interest spread increased to 3.15% from 2.69% a year earlier. In the first half of 2025, net interest margin was 3.34% and net interest spread was 3.15% compared with 3.04% and 2.68%, respectively, in the first half of 2024. Noninterest income in the second quarter of 2025 was $4.08 million compared with $4.19 million in the second quarter of 2024. Noninterest income in the first half of 2025 was $7.36 million compared with $7.50 million in the first half of 2024. The predominant amount of noninterest income in both periods of 2025 was generated by fees from debit card activity, commercial treasury services, gains on sale of loans held for sale by our mortgage division, and wealth management fees generated by PWW. Noninterest expense in the second quarter of 2025 was $9.46 million compared with $8.74 million a year earlier. In the first half of 2025, noninterest expense was $19.28 million compared with $16.83 million in the first half of 2024. The year-over-year increases primarily reflected consulting fees incurred in negotiating an amendment to the agreement with a major vendor, the addition of revenue-generating employees, new banking facilities in strategic locations, and quarterly accruals of year-end employee compensation. Balance Sheet: Strong Cash Position, High Asset Quality Total assets were $1.004 billion at June 30, 2025 compared with $979.24 million at December 31, 2024. The increase was due primarily to increases in securities available-for-sale, at fair value, and loan growth, primarily commercial real estate loans. Loans, net of allowance for credit losses, were $649.09 million at June 30, 2025 compared with $636.55 million at December 31, 2024, reflecting growth of commercial real estate loans. Commercial real estate loans (owner-occupied and non-owner occupied, excluding construction loans) totaled $355.68 million at June 30, 2025 compared with $335.53 million at December 31, 2024, reflecting growth from new loans that was partially offset by loan amortizations and payoffs. Of this amount, at June 30, 2025, commercial real estate (non-owner occupied) was $202.15 million and commercial real estate (owner occupied) was $153.53 million. The Bank closely monitors concentrations in these segments and has no commercial real estate loans secured by large office buildings in large metropolitan city centers. Commercial construction/land loans were $10.68 million, declining from $11.54 million at March 31, 2025 and $23.88 million at December 31, 2024 levels as projects concluded. Residential construction/land loans at June 30, 2025 were $29.04 million up from $26.15 million at December 31, 2024, reflecting continued home building strength and activity in several markets. Commercial and industrial loans were $70.51 million at June 30, 2025 compared to $66.42 million at December 31, 2024. Residential mortgage loans that the Company intends to keep on the balance sheet totaled $108.88 million at June 30, 2025, down slightly from $111.65 million at December 31, 2024. Growth of these retained mortgages has been minimal, as the Bank has continued to focus on selling the majority of originated mortgage loans to the secondary market. Consumer loans (open-end and closed-end) totaled $80.62 million, compared with $78.31 million at December 31, 2024, and remained relatively stable year-over-year. Ongoing high asset quality continues to have a positive impact on the Company’s financial performance. The ratio of nonperforming loans to total loans at June 30, 2025 was 0.28% compared with 0.25% at December 31, 2024. High asset quality was also reflected in the allowance for credit losses for loans to total loans, which declined to 0.96% at June 30, 2025 from 1.09% at December 31, 2024. Total nonperforming loans were $1.85 million at June 30, 2025 compared with $1.64 million at December 31, 2024. As a result of having no OREO, total nonperforming assets were the same as total nonperforming loans. The Tier 1 leverage ratio at the Bank level was 8.85% at June 30, 2025, reflecting a well-capitalized institution. Total deposits were $910.53 million at June 30, 2025 compared with $882.40 million at December 31, 2024. Core deposits (noninterest bearing demand deposits, NOW, money market and savings) were $681.36 million compared with $651.90 million at December 31, 2024. Time deposits were stable, reflecting the Bank’s focus on growing and retaining lower-cost core deposits. At June 30, 2025 and December 31, 2024, the Bank had no brokered deposits. Key measures of shareholder value continued to trend positively. Stockholders’ equity rose to $71.67 million at June 30, 2025 from $64.87 million at December 31, 2024. Retained earnings increased to $45.44 million at June 30, 2025 from $42.80 million at December 31, 2024. Book value per share rose to $15.77 at June 30, 2025 from $14.28 at December 31, 2024, and continued to reflect quarterly fluctuations in required fair market valuations of the Company’s available-for-sale investment portfolio. Interest rate fluctuations result in adjustments to the fair value in the Company’s available-for-sale securities portfolio (known as “mark-to-market”), which are reflected in accumulated other comprehensive loss. These mark-to-market losses are excluded when calculating the Bank’s regulatory capital ratios. The available-for-sale securities portfolio is composed primarily of securities with explicit or implicit government guarantees, including U.S. Treasuries and U.S. agency obligations, and other highly rated debt instruments. The Company does not expect to realize the unrealized losses, as it has the intent and ability to hold the securities until their recovery, which may be at maturity. Management continues to diligently monitor the creditworthiness of the issuers of the debt instruments within its securities portfolio. 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. Cautionary Statement Regarding Forward-Looking Statements 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: J. Todd Scruggs, Executive Vice President and Chief Financial Officer (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) Bank of the James Financial Group, Inc. and Subsidiaries Consolidated Statements of Income (dollar amounts in thousands, except per share amounts) (unaudited) Bank of the James Financial Group, Inc. and Subsidiaries Dollar amounts in thousands, except per share data unaudited

Loan Growth, Asset Quality, Declaration of Quarterly Dividend LYNCHBURG, Va., Aug. 04, 2025 (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 month and six month periods ended June 30, 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. Net income for the three months ended June 30, 2025 was $2.70 million or $0.60 per basic and diluted share compared with $2.15 million or $0.47 per basic and diluted share for the three months ended June 30, 2024. Net income for the six months ended June 30, 2025 was $3.55 million or $0.79 per basic and diluted share compared with $4.34 million or $0.95 per basic and diluted share for the six months ended June 30, 2024. Robert R. Chapman III, CEO of the Bank, commented: “Our financial results, and particularly the second quarter 2025 performance, demonstrated continued traction in commercial lending, mortgage originations and core deposits. Strong earnings in the second quarter and first half establish a solid base for continuing positive financial performance as we enter the second half of 2025. “Net interest margin and interest spread have consistently improved during the past year, reflecting a focus on keeping loan yields on pace with the prevailing interest rate environment, controlling interest expense, and managing our level of borrowings. Net interest margin of 3.45% in the second quarter of 2025 was the highest in a number of quarters. “Maintaining high quality interest-earning assets, as seen in our asset quality ratios, continues to support sound margins and quality earnings. Diligent credit management and monitoring has an important role in maintaining exceptional asset quality. “Our strategy of generating interest and noninterest income from a variety of sources has provided financial stability and predictable earnings during the past few years, which have been marked by economic challenges and uncertainty. A balanced revenue stream from commercial and retail banking, and fees from sources such as wealth management, cash management services, mortgage loan originations and more have resulted in consistently strong financial performance and cash generation. “A strong cash position enabled our parent company to achieve a significant milestone in the second quarter as it officially retired approximately $10 million in capital notes. This is expected to reduce our interest expense by approximately $327,000 annually and. in the current interest rate environment, should help lower the overall rate on interest-bearing liabilities. Our financial performance over the years generated the cash position needed to retire this debt, allowing us to avoid refinancing at today's higher interest rates. The Bank continues to be well capitalized, with a Tier 1 leverage ratio of 8.85% at June 30, 2025. “This debt offering provided capital at an important time for the Company and it was accomplished entirely through a private transaction between the Company and a group of investors. As we retire this debt, we wish to thank the numerous local investors who demonstrated their support for, and confidence in, the Company in a very tangible way. “The Company continues building value for shareholders, as evidenced by growth in stockholders’ equity, retained earnings, and significant growth of book value per share in the second quarter. We remain focused on efficient operations, maintaining superior asset quality, and sustainable growth.” Second Quarter, First Half of 2025 Highlights Net income and earnings per share (“EPS”) in the second quarter of 2025 partially reflected a $528,000 recovery of allowance for credit losses. Total interest income rose 6% to $11.64 million in the second quarter of 2025 compared with $10.94 million a year earlier. In the first half of 2025, total interest income was $22.87 million, up 7% from $21.44 million a year earlier. The growth in both periods primarily reflected higher yields on loans, commercial real estate (CRE) growth, and the addition of higher-rate residential mortgages. The average yield earned on loans, including fees, increased meaningfully in both periods of 2025 from the comparable 2024 periods. Net interest income after recovery of credit losses was $8.78 million in the second quarter of 2025, up 22% from a year earlier. In the first half of 2025, net interest income after recovery of credit losses was $16.36 million, up 11% from $14.72 million a year earlier. Interest expense in the second quarter and first half of 2025 declined 12% and 7%, respectively, compared with the second quarter and first half of 2024, respectively, reflecting ongoing rate management and a focus on growing lower cost core deposits. Net interest margin in the second quarter of 2025 rose to 3.45% compared with 3.02% a year earlier and 3.25% in the first quarter of 2025. In the first half of 2025, net interest margin increased to 3.34% compared to 3.02% in the first half of 2024. Interest spread in the second quarter and first half of 2025 increased significantly from the prior year’s periods. Total noninterest income of $4.08 million in the second quarter of 2025 and $7.36 million in the first half of 2025 were relatively stable compared with the previous year’s periods, primarily reflecting continuing strong contributions from commercial treasury services, residential mortgage origination fee income, and wealth management fee income from PWW. Loans, net of the allowance for credit losses, increased to $649.09 million at June 30, 2025 from $636.55 million at December 31, 2024 and $616.09 million a year earlier. Commercial real estate loans (owner occupied and non-owner occupied) led lending activity, increasing to $355.67 million from $335.53 million at December 31, 2024. Measures of asset quality remained strong, highlighted by a ratio of nonperforming loans to total loans of 0.28% at June 30, 2025, with no other real estate owned (OREO). Total assets were $1.04 billion at June 30, 2025 compared with $979.24 million at December 31, 2024. Total deposits were $910.53 million at June 30, 2025, up from $882.40 million at December 31, 2024, reflecting the Bank’s continuing focus on growing core deposits (noninterest bearing demand deposits, NOW, money market and savings). Shareholder value measures included growth in stockholders’ equity to $71.67 million at June 30, 2025 from $64.87 million at December 31, 2024, higher retained earnings, and a book value per share of $15.77, up from $14.28 at December 31, 2024. In the second quarter of 2025, the parent company extinguished its issue of approximately $10 million of capital notes, which will have a positive impact on interest expense and the rate on interest-bearing liabilities. On July 12, 2025, the Company’s board of directors approved a quarterly dividend of $0.10 per common share to stockholders of record as of September 12, 2025 to be paid on September 26, 2025. Second Quarter, First Half of 2025 Operational Review Net interest income for the second quarter of 2025 was $8.25 million, up 16% from $7.09 million in the second quarter of 2024. In the first half of 2025, net interest income grew 14% to $15.97 million from $14.04 million in the first half of 2024. Total interest income was $11.64 million in the second quarter of 2025 compared with $10.94 million a year earlier. In the first half of 2025, total interest income rose to $22.87 million from $21.44 million in the first half of 2024. The year-over-year increases in both 2025 periods primarily reflected upward rate adjustments to variable rate commercial loans and new loans reflecting the prevailing rate environment. Investment portfolio management and appropriate rate increases on loans continued to contribute to year-over-year growth in the yield on total earning assets, which was 4.86% in the second quarter of 2025 compared with 4.68% a year earlier. In the first half of 2025, the yield on total earning assets was 4.79% compared with 4.62% a year earlier. Total interest expense in the second quarter of 2025 declined 12% to $3.39 million compared with $3.84 million in the second quarter of 2024. In the first half of 2025, total interest expense declined to $6.90 million from $7.40 million in the prior year’s first half. Lower interest expense in both periods of 2025 primarily reflected a relatively stable interest rate environment and the Bank’s management of rates paid on interest-bearing deposits, including time deposits. A generally stable interest rate environment and the Company’s upward adjustments to floating rate commercial loans and rates on originated and retained residential mortgages contributed to gradual margin pressure relief during the past several quarters. In the second quarter of 2025, the net interest margin was 3.45% compared with 3.02% in the second quarter of 2024, while interest spread increased to 3.15% from 2.69% a year earlier. In the first half of 2025, net interest margin was 3.34% and net interest spread was 3.15% compared with 3.04% and 2.68%, respectively, in the first half of 2024. Noninterest income in the second quarter of 2025 was $4.08 million compared with $4.19 million in the second quarter of 2024. Noninterest income in the first half of 2025 was $7.36 million compared with $7.50 million in the first half of 2024. The predominant amount of noninterest income in both periods of 2025 was generated by fees from debit card activity, commercial treasury services, gains on sale of loans held for sale by our mortgage division, and wealth management fees generated by PWW. Noninterest expense in the second quarter of 2025 was $9.46 million compared with $8.74 million a year earlier. In the first half of 2025, noninterest expense was $19.28 million compared with $16.83 million in the first half of 2024. The year-over-year increases primarily reflected consulting fees incurred in negotiating an amendment to the agreement with a major vendor, the addition of revenue-generating employees, new banking facilities in strategic locations, and quarterly accruals of year-end employee compensation. Balance Sheet: Strong Cash Position, High Asset Quality Total assets were $1.04 billion at June 30, 2025 compared with $979.24 million at December 31, 2024. The increase was due primarily to increases in securities available-for-sale, at fair value, and loan growth, primarily commercial real estate loans. Loans, net of allowance for credit losses, were $649.09 at June 30, 2025 compared with $636.55 at December 31, 2024, reflecting growth of commercial real estate loans. Commercial real estate loans (owner-occupied and non-owner occupied, excluding construction loans) totaled $355.68 million at June 30, 2025 compared with $335.53 million at December 31, 2024, reflecting growth from new loans that was partially offset by loan amortizations and payoffs. Of this amount, at June 30, 2025, commercial real estate (non-owner occupied) was $202.15 million and commercial real estate (owner occupied) was $153.53 million. The Bank closely monitors concentrations in these segments and has no commercial real estate loans secured by large office buildings in large metropolitan city centers. Commercial construction/land loans were $10.68 million, declining from $11.54 million at March 31, 2025 and $23.88 million at December 31, 2024 levels as projects concluded. Residential construction/land loans at June 30, 2025 were $29.04 million up from $26.15 million at December 31, 2024, reflecting continued home building strength and activity in several markets. Commercial and industrial loans were $70.51 million at June 30, 2025 compared to $66.42 million at December 31, 2024. Residential mortgage loans that the Company intends to keep on the balance sheet totaled $108.88 million at June 30, 2025, down slightly from $111.65 million at December 31, 2024. Growth of these retained mortgages has been minimal, as the Bank has continued to focus on selling the majority of originated mortgage loans to the secondary market. Consumer loans (open-end and closed-end) totaled $80.62 million, compared with $78.31 million at December 31, 2024, and remained relatively stable year-over-year. Ongoing high asset quality continues to have a positive impact on the Company’s financial performance. The ratio of nonperforming loans to total loans at June 30, 2025 was 0.28% compared with 0.25% at December 31, 2024. High asset quality was also reflected in the allowance for credit losses for loans to total loans, which declined to 0.96% at June 30, 2025 from 1.09% at December 31, 2024. Total nonperforming loans were $1.85 million at June 30, 2025 compared with $1.64 million at December 31, 2024. As a result of having no OREO, total nonperforming assets were the same as total nonperforming loans. The Tier 1 leverage ratio at the Bank level was 8.85% at June 30, 2025, reflecting a well-capitalized institution. Total deposits were $910.53 million at June 30, 2025 compared with $882.40 million at December 31, 2024. Core deposits (noninterest bearing demand deposits, NOW, money market and savings) were $681.36 million compared with $651.90 million at December 31, 2024. Time deposits were stable, reflecting the Bank’s focus on growing and retaining lower-cost core deposits. At June 30, 2025 and December 31, 2024, the Bank had no brokered deposits. Key measures of shareholder value continued to trend positively. Stockholders’ equity rose to $71.67 million at June 30, 2025 from $64.87 million at December 31, 2024. Retained earnings increased to $45.44 million at June 30, 2025 from $42.80 million at December 31, 2024. Book value per share rose to $15.77 at June 30, 2025 from $14.28 at December 31, 2024, and continued to reflect quarterly fluctuations in required fair market valuations of the Company’s available-for-sale investment portfolio. Interest rate fluctuations result in adjustments to the fair value in the Company’s available-for-sale securities portfolio (known as “mark-to-market”), which are reflected in accumulated other comprehensive loss. These mark-to-market losses are excluded when calculating the Bank’s regulatory capital ratios. The available-for-sale securities portfolio is composed primarily of securities with explicit or implicit government guarantees, including U.S. Treasuries and U.S. agency obligations, and other highly rated debt instruments. The Company does not expect to realize the unrealized losses, as it has the intent and ability to hold the securities until their recovery, which may be at maturity. Management continues to diligently monitor the creditworthiness of the issuers of the debt instruments within its securities portfolio. 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. Cautionary Statement Regarding Forward-Looking Statements 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: J. Todd Scruggs, Executive Vice President and Chief Financial Officer (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) Bank of the James Financial Group, Inc. and Subsidiaries Consolidated Statements of Income (dollar amounts in thousands, except per share amounts) (unaudited) Bank of the James Financial Group, Inc. and Subsidiaries Dollar amounts in thousands, except per share data unaudited