Bank of the James Financial Group (BOTJ) investor relations material

Executive summary

• Net income for Q2 2026 was $3.24M, up 19.8% year-over-year; six-month net income was $6.01M, up 69.6% year-over-year.

• Earnings per share were $0.71 for Q2 and $1.32 for the first half, compared to $0.60 and $0.78 in 2025.

• Profitability was driven by higher net interest income, increased noninterest income, and lower noninterest expense.

• Board declared a $0.10 per share quarterly dividend, payable September 4, 2026.

Financial highlights

• Total assets reached $1.041B at June 30, 2026, up from $1.004B a year earlier.

• Loans (excluding held for sale) grew 3.7% to $692.7M; deposits decreased 0.2% to $935.2M.

• Net interest income for Q2 was $9.25M (up from $8.25M); net interest margin rose to 3.71% from 3.44% year-over-year.

• Noninterest income for Q2 was $4.48M, up from $4.08M, led by wealth management and service fees.

• Noninterest expense declined to $9.31M in Q2, mainly due to lower data processing and professional fees.

Outlook and guidance

• Management expects continued margin support from repricing of liabilities but notes potential pressure from rising rates and competition.

• Loan growth is expected to moderate after a robust Q2, with focus on disciplined underwriting and asset quality.

• Data processing expenses may rise as new services are implemented, but ongoing cost benefits from renegotiated contracts are anticipated.

• Mortgage segment revenue may remain pressured by elevated interest rates.

• Ongoing efforts to improve operating efficiency and expense management are expected to continue.