Bank of the James Financial Group, Inc. (BOTJ): History, Ownership, Mission, How It Works & Makes Money

How does a community-focused institution like Bank of the James Financial Group, Inc. (BOTJ) maintain its competitive edge and drive shareholder returns in a tough rate environment?

As of late 2025, this Virginia-based bank holds over $1.02 billion in total assets and has delivered year-to-date net income of nearly $6.3 million, demonstrating a solid foundation built on its core Community Banking, Mortgage Banking, and Investment Advisory segments. We'll break down how their mission-to be the preeminent local financial defintely institution-translates into a net interest margin of 3.37%, and what that means for your portfolio and the future of regional banking.

Bank of the James Financial Group, Inc. (BOTJ) History

The story of Bank of the James Financial Group, Inc. (BOTJ) is a direct response to the erosion of local banking service in Central Virginia, a trend driven by large corporate mergers. You see, the founders recognized that when decisions move out of state, personalized service dies. So, they built a local alternative, one focused on relationships and community involvement. It's a classic community bank origin story, but their consistent growth to over a $1 billion in total assets by the end of 2025 shows they executed the model defintely well.

Given Company's Founding Timeline

Year established

The Bank of the James was incorporated in 1998 and officially began banking operations on July 22, 1999. The holding company, Bank of the James Financial Group, Inc., was incorporated later, on October 3, 2003, acquiring the Bank on January 1, 2004.

Original location

Lynchburg, Virginia. The Bank's principal office is located at 828 Main Street in Lynchburg, Virginia, serving the Central Virginia and Region 2000 area.

Founding team members

The bank started with a small, dedicated group: a start-up team of 12 employees and 10 directors. [cite: 6 (from first search), 9 (from second search)]

• Robert R. Chapman III: Founder and current Chief Executive Officer (CEO). [cite: 9 (from second search)]
• J. Todd Scruggs: Co-founder and Executive Vice President & Chief Financial Officer (CFO). [cite: 6 (from first search), 8 (from second search)]

Initial capital/funding

The Bank was initially capitalized through a public offering of its common stock, which concluded in February 1999. This effort raised a total capitalization of $9,356,300.

• The funding came from over 2,400 shareholders, who also formed the initial customer base.
• Shares were offered at $10.00 per share.

Given Company's Evolution Milestones

Given Company's Transformative Moments

The company's trajectory has been shaped by a few critical decisions that prioritized stability and service over aggressive, high-risk expansion.

• The Holding Company Formation (2004): Creating Bank of the James Financial Group, Inc. allowed for cleaner capital management and the ability to hold non-bank subsidiaries, which was key to future diversification.
• Strategic Diversification into Wealth Management (2021): The acquisition of Pettyjohn, Wood & White, Inc. was a smart move. It shifted the revenue mix, adding a steady, fee-based income stream that is less sensitive to interest rate fluctuations than pure lending. You can dive deeper into this shift by Exploring Bank of the James Financial Group, Inc. (BOTJ) Investor Profile: Who's Buying and Why?
• Deleveraging in 2025: The anticipated payoff of approximately $10 million in capital notes in June 2025, using existing holding company cash, is a strong signal. [cite: 2 (from first search)] This action reduces interest expense and strengthens the capital base, which is a clear, conservative move in a volatile rate environment.
• 2025 Leadership Transition: The October 30, 2025, announcement of a CFO-CIO Transition and new CFO appointment shows a commitment to evolving the executive team to match the bank's growing scale and complexity. [cite: 4 (from first search)] This is just smart governance.

What this history shows is a patient, community-focused growth model that has now reached a significant scale. At $1.02 billion in assets, they're still small enough to be nimble, but big enough to be a serious player in their regional markets. [cite: 1 (from first search)]

Bank of the James Financial Group, Inc. (BOTJ) Ownership Structure

Bank of the James Financial Group, Inc. (BOTJ) is primarily controlled by a diverse group of stakeholders, with a majority of its stock held by retail investors, but with significant influence from company insiders and institutions.

This structure, where insiders hold a large stake, suggests that the executive team's financial interests are defintely aligned with shareholder returns, which is often a positive signal for long-term stability.

Bank of the James Financial Group, Inc. Current Status

Bank of the James Financial Group, Inc. is a Publicly Held company, with its common stock trading on the NASDAQ Stock Market, LLC under the ticker symbol BOTJ. As a public entity, it is subject to rigorous reporting requirements from the Securities and Exchange Commission (SEC), providing investors with transparency into its operations and financial health.

As of late October 2025, the regional bank had a market capitalization of approximately $74 million. To put that in perspective, the company reported total assets of $1.01 billion as of March 31, 2025, demonstrating its size as a community-focused financial institution. You can dive deeper into the firm's balance sheet here: Breaking Down Bank of the James Financial Group, Inc. (BOTJ) Financial Health: Key Insights for Investors

Bank of the James Financial Group, Inc. Ownership Breakdown

The company's ownership structure is split between three main groups: retail investors, institutional shareholders, and company insiders. Retail investors hold the largest percentage, but the combined clout of institutions and insiders is substantial and drives governance.

Here's the quick math on who owns the shares, based on recent 2025 fiscal year data:

Bank of the James Financial Group, Inc. Leadership

The leadership team, which includes some of the bank's founders, has a strong continuity of experience, but is also undergoing a strategic transition to enhance oversight, effective January 1, 2026. This move separates financial operations from investment management, which is a smart governance play.

The key leaders steering the organization as of November 2025 are:

• Robert R. Chapman III: Chief Executive Officer (CEO) of the Bank.
• Augustus A. Petticolas, Jr.: Chairman of the Board.
• J. Todd Scruggs: Current Chief Financial Officer, transitioning to the newly created role of Chief Investment Officer (CIO) on January 1, 2026, to focus on managing the bank's investment portfolio.
• Eric J. Sorenson, Jr.: Executive Vice President and General Counsel, who will succeed Scruggs as the new Chief Financial Officer (CFO) on January 1, 2026.
• Michael A. Syrek: President of the Bank of the James.
• Brandon P. Farmer: Executive Vice President and Chief Operations Officer.

Bank of the James Financial Group, Inc. (BOTJ) Mission and Values

The core purpose of Bank of the James Financial Group, Inc. (BOTJ) is to be the preeminent financial institution in its Central Virginia communities, driven by a culture that prioritizes superior customer service, community investment, and team belief. This focus on local relationships and integrity is what truly differentiates them from the larger, national banks.

Bank of the James Financial Group, Inc.'s Core Purpose

When you look at a community bank like Bank of the James, the mission and values are the bedrock of their operating model-it's how they managed to grow total assets to $1.02 billion by September 30, 2025, while maintaining a local focus. This cultural DNA is what allows them to make local decisions and offer customized financial solutions, which is defintely a competitive edge against the big players.

Official mission statement

The mission is clear and centers on three pillars: service, community, and team. It's a statement that maps directly to their local market strategy.

• Be the preeminent financial institution in the communities they serve.
• Achieve this through superior customer service.
• Demonstrate a commitment to giving back.
• Maintain a strong belief in their team.

This commitment translates into real numbers; for instance, their Investment Advisory segment had assets under management (AUM) of $984.7 million as of September 30, 2025, which shows client trust in their service model. Mission Statement, Vision, & Core Values of Bank of the James Financial Group, Inc. (BOTJ).

Vision statement

The vision is simple but powerful: to be the financial institution of choice. This isn't about being the biggest, but the most preferred-a goal that requires consistent execution of their mission.

• Be the financial institution of choice.

Their focus on core deposits-noninterest-bearing demand, NOW, money market, and savings accounts-is a good indicator of this preference, with total deposits reaching $922.1 million as of September 30, 2025, showing strong community buy-in. I like the clarity here; it's a measurable goal based on customer action.

Bank of the James Financial Group, Inc. slogan/tagline

While they use several phrases to communicate their community focus, the most resonant theme is their role as a local partner, which underscores why they were founded in 1999-to counter the service erosion from large corporate bank takeovers.

• BOTJ is your Community Partner.
• We're with you.

The company's employee values-developed from staff feedback-further reinforce this community-first approach, emphasizing Integrity, Teamwork, and Community as central tenets. You see the outcome in their shareholder value measures, too: stockholders' equity grew to $76.97 million by the third quarter of 2025, a clear sign that purpose and profit aren't mutually exclusive.

Bank of the James Financial Group, Inc. (BOTJ) How It Works

Bank of the James Financial Group, Inc. (BOTJ) operates as a bank holding company, generating revenue primarily by taking local deposits and using those funds to originate loans, plus earning fees from specialized mortgage and wealth management services. This community-focused model centers on three key business segments: Community Banking, Mortgage Banking, and Investment Advisory, all serving Central Virginia and surrounding markets.

Bank of the James Financial Group, Inc.'s Product/Service Portfolio

Bank of the James Financial Group, Inc.'s Operational Framework

The company's operational framework is built on a simple, proven community banking playbook: grow low-cost core deposits (noninterest-bearing demand, NOW, money market, and savings accounts) to fund higher-yield loan growth, especially in commercial real estate. As of September 30, 2025, deposits stood at $922.1 million, up from $882.4 million at the end of 2024.

Here's the quick math on how they drive income:

• Interest Income Engine: The Community Banking segment generates the bulk of revenue from net interest income (NII), which is the difference between interest earned on loans and securities and interest paid on deposits and borrowings. Total Interest Income for the first nine months of 2025 was $34.643 million.
• Non-Interest Revenue: The Mortgage Banking and Investment Advisory segments provide noninterest income, which diversifies the revenue stream. Total Noninterest Income was $11.527 million for the first nine months of 2025.
• Credit Management: They maintain a tight grip on asset quality. The nonperforming loans ratio was exceptionally low at just 0.28% of total loans as of June 30, 2025, which helps keep credit loss provisions manageable.

They defintely focus on operational efficiency, too. For instance, they retired about $10 million in capital notes in 2025, which is projected to reduce annual interest expenses by roughly $327,000.

Bank of the James Financial Group, Inc.'s Strategic Advantages

In a crowded regional banking market, Bank of the James Financial Group, Inc. maintains its edge through a combination of financial strength, local focus, and a diversified service offering. Their core advantage is being a well-capitalized institution, which gives them stability.

What this estimate hides is the power of their local presence; they serve a defined geographic area in Virginia, including the greater Lynchburg metropolitan statistical area (MSA), Roanoke, and Charlottesville, allowing for deep community ties and better risk assessment.

• Financial Fortitude: The Bank's Tier 1 leverage ratio was a strong 8.85% as of June 30, 2025, showing they are well-capitalized compared to regulatory minimums.
• Core Deposit Focus: They have a strategic focus on growing and retaining lower-cost core deposits, which minimizes their reliance on more volatile, higher-cost funding sources like brokered deposits. They had zero brokered deposits as of June 30, 2025.
• Revenue Diversification: The three-segment structure-Community Banking, Mortgage Banking, and Investment Advisory-smooths out earnings. When mortgage origination slows, the fee-based Investment Advisory business (Pettyjohn, Wood & White, Inc.) and steady NII from the loan portfolio provide a cushion. You can read more about their ethos here: Mission Statement, Vision, & Core Values of Bank of the James Financial Group, Inc. (BOTJ).

Their strength is in being a consistent, high-quality lender; total loans held for investment, net of allowance, reached $653.3 million by September 30, 2025.

Bank of the James Financial Group, Inc. (BOTJ) How It Makes Money

Bank of the James Financial Group, Inc. makes money primarily by managing the spread between the interest it earns on loans and investments and the interest it pays on customer deposits, a model known as net interest income. Plus, it generates significant fee-based revenue from its mortgage banking and investment advisory services, diversifying its income streams.

Bank of the James Financial Group, Inc.'s Revenue Breakdown

For the first nine months of the 2025 fiscal year, the company's core revenue-the sum of Net Interest Income and Noninterest Income-totaled approximately $\mathbf{\$35.8}$ million. Here's the quick math on how that revenue broke down, which is crucial for understanding the sustainability of their business model.

Business Economics

The core of any bank's economics is the Net Interest Margin (NIM), and Bank of the James has defintely shown disciplined management here. For the first nine months of 2025, the NIM expanded to $\mathbf{3.37\%}$, a solid increase of $\mathbf{30}$ basis points year-to-date. This expansion is a direct result of two key actions:

• Reducing funding costs: The average rate paid on interest-bearing deposits dropped from $\mathbf{1.93\%}$ to $\mathbf{1.70\%}$.
• Strategic debt retirement: The company retired approximately $\mathbf{\$10}$ million in capital notes in Q2 2025, which immediately cut interest expense.

The noninterest income stream, representing nearly a third of core revenue, acts as a vital buffer against interest rate volatility. This income is driven by three segments: Community Banking service fees (like treasury services), residential mortgage origination fees, and wealth management fees from its subsidiary, Pettyjohn, Wood & White, Inc.. The Investment Advisory segment is a compounding asset, with Assets Under Management (AUM) surging $\mathbf{17\%}$ to $\mathbf{\$984.7}$ million as of September 30, 2025. That's high-quality, fee-based revenue that requires less capital than lending.

Bank of the James Financial Group, Inc.'s Financial Performance

Looking at the September 30, 2025, figures, the bank is showing growth in its balance sheet and maintaining strong credit quality, which is exactly what you want to see from a community bank. Total assets are approximately $\mathbf{\$1.04}$ billion, a $\mathbf{6.2\%}$ increase from year-end 2024, driven by commercial real estate loan growth.

• Net Income: Year-to-date net income for the first nine months of 2025 was $\mathbf{\$6.3}$ million, with Q3 alone delivering a record $\mathbf{\$2.75}$ million, a $\mathbf{38\%}$ jump from Q3 2024.
• Loan Portfolio Health: Asset quality remains strong; nonperforming loans stood at $\mathbf{0.29\%}$ of total loans as of Q3 2025, a low figure that speaks to disciplined underwriting.
• Capital Position: The bank is well-capitalized, with a Common Equity Tier 1 (CET1) Capital Ratio of $\mathbf{11.38\%}$ at the bank level as of June 30, 2025, well above the regulatory minimums.

While year-to-date net income was flat compared to 2024, the Q3 surge shows the benefit of their funding cost management finally hitting the bottom line. For a deeper dive into the risks and opportunities behind these numbers, you should read Breaking Down Bank of the James Financial Group, Inc. (BOTJ) Financial Health: Key Insights for Investors.

Bank of the James Financial Group, Inc. (BOTJ) Market Position & Future Outlook

Bank of the James Financial Group is positioned as a strong, relationship-focused community bank in Central Virginia, leveraging its high net interest margin and growing wealth management segment to drive profitability. The company's future outlook hinges on successfully executing its strategic leadership realignment and disciplined geographical expansion into adjacent, higher-growth markets.

Competitive Landscape

In the Central Virginia community banking space, Bank of the James Financial Group competes primarily against other regional institutions, distinguishing itself through a full-service model that includes commercial banking, mortgage origination, and investment advisory services. We can assess its market standing by comparing its Q3 2025 Total Assets against key regional peers.

Here's the quick math: Bank of the James Financial Group's Total Assets were approximately $1.011 billion as of September 30, 2025, placing it firmly in the $1 billion to $5 billion community bank class. Its core competitive advantage is the integration of its Investment Advisory segment, Pettyjohn, Wood & White, Inc., which had assets under management (AUM) of nearly $1 billion, specifically $984.7 million, by Q3 2025.

Opportunities & Challenges

You need to map out the near-term landscape, so let's look at where the company can win and where it faces headwinds. The company is defintely focused on operational clarity and strategic growth, but still must manage the current economic environment.

Industry Position

Bank of the James Financial Group is a well-capitalized, high-performing regional institution, especially when compared to its peer group of 'true' community banks in Virginia. Its net interest margin of 3.44% in the third quarter of 2025 is a strong signal of pricing power and funding stability. The company's strategic move to split the Chief Financial Officer (CFO) and Chief Investment Officer (CIO) roles, effective January 1, 2026, is a sophisticated step toward better capital discipline and specialized oversight-a strategy often adopted by larger regional banks.

The company maintains a strong local identity, which is its core competitive advantage (a 'moat,' or sustainable competitive edge), allowing it to capture small-to-medium-sized business (SMB) lending that larger national banks often overlook. They are still here, nearly 25 years after their founding, because of that local focus. You can review their foundational principles here: Mission Statement, Vision, & Core Values of Bank of the James Financial Group, Inc. (BOTJ).

• Maintain focus on growing core deposits, which reached $919.80 million by Q3 2025.
• Loan growth, particularly in commercial real estate (CRE), is a primary driver of the 4.9% increase in total interest income for the first nine months of 2025.
• The firm's success is tied to its ability to cross-sell services across its three segments: Community Banking, Mortgage Banking, and Investment Advisory.