Bank of the James Raises Dividend 50% to $0.15 as Quarterly Profit Grows
Key Facts
Bank of the James Financial Group reported net income of $3.32 million in the third quarter of 2026, up $570,000 from the same period in 2025, while earnings per share rose to $0.73 from $0.61. The results were disclosed in a filing with the U.S. Securities and Exchange Commission and showed continued profit growth during the year. Chief Executive Robert Chapman said the company had "again achieved record quarterly earnings" in the third quarter, continuing the momentum recorded during 2026. For the first nine months, net income was $9.34 million, compared with $6.30 million a year earlier. Earnings per share for the same period rose to $2.05 from $1.39.
The company attributed the increase in net income during the first nine months to higher net interest income and growth in noninterest income. The net interest margin, on a tax-equivalent basis, rose to 3.81% in the third quarter from 3.44% a year earlier. The margin also reached 3.70% in the first nine months, compared with 3.37% in the corresponding period of 2025. The quarterly margin expansion coincided with an 8.90% decline in interest expense to $3.16 million from $3.47 million a year earlier. The company said the decline reflected a lower cost of deposits, which supported interest income during the quarter.
Deposits stood at $963.60 million on September 30, 2026, compared with $919.80 million on the same date a year earlier. On asset quality, nonperforming loans fell to $548,000 at the end of September from $1.09 million on June 30. The company attributed the decline mainly to the return of some relationships that were not current to accrual status. These indicators came alongside higher profitability and a wider net interest margin during the period. The company’s shares, which trade under the ticker BOTJ, closed at $23.67 on October 29, according to EL7 data.
By contrast, shareholders’ equity declined to $78.45 million on September 30 from $80.05 million on December 31, 2025. Retained earnings increased by $7.97 million during the first nine months, but that did not offset the increase in accumulated unrealized losses on available-for-sale securities. These losses, net of tax, rose to $24.51 million from $14.94 million at the end of 2025, an increase of $9.57 million. The filing linked the impact of the losses to higher market interest rates. Improved earnings and loan quality therefore coincided with accounting pressure on shareholders’ equity resulting from changes in the value of the securities portfolio.
The board on October 27 approved a quarterly cash dividend of $0.15 per share, an increase of $0.05, or 50%, from the dividend announced in July. The dividend is payable to shareholders of record on November 20, with payment scheduled for December 4, 2026. The decision reflects the company’s increase in the cash amount set for each share alongside earnings growth during the quarter and first nine months. The record and payment dates set out the next two steps for eligible shareholders. The payment date of December 4 follows the record date set for November 20.