BANK OF THE JAMES FINANCIAL GROUP INC
For the period ended Mar 31, 2026. Filed May 12, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed May 12, 2026
BOTJ$24.44+2.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-11-14.
0001275101-25-000007
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-12.
0001275101-26-000019
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 203 previous paragraphs and 195 current paragraphs.
95 unchanged; 66 reworded; 34 added; 39 removed; 3 previous and 0 current paragraphs rearranged.
Tables are not compared: 9 previous and 7 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (34)
Current report
Interest in Additional Properties
Current report
The Bank also owns two additional properties in its market area, one held for possible future expansion or sale and one under contract for sale, subject to due diligence and other customary closing conditions.
Current report
The Bank may acquire suitable properties for branch expansion as opportunities arise. Future branch openings are subject to regulatory approval.
Current report
Total loans, excluding loans held for sale, decreased to $655,334,000 at March 31, 2026, from $667,807,000 at December 31, 2025, a decrease of $12,473,000, or 1.85%. The decline was concentrated in the commercial portfolio, which decreased $4,363,000 (primarily reflecting loan payoffs), and in the consumer portfolio, where consumer open-end and closed-end balances declined $3,192,000 and $1,020,000, respectively. Residential mortgage balances were essentially flat, while residential consumer construction/land balances declined $2,499,000 as construction loans converted to permanent financing or paid off. Within commercial real estate, modest growth in commercial construction/land (an increase of $1,279,000) was more than offset by declines in owner-occupied and non-owner-occupied commercial mortgages, resulting in a net decrease of $1,448,000 in the commercial real estate portfolio.
Current report
Stockholders’ equity totaled $81,284,000 at March 31, 2026, compared with $80,048,000 at December 31, 2025, an increase of 1.54%. The increase primarily reflected net income of $2,774,000, partially offset by dividends paid to common stockholders of $455,000 and a $1,083,00 increase in accumulated other comprehensive loss related to unrealized losses on available-for-sale securities during the period.
Current report
At March 31, 2026, deposits in accounts with balances exceeding the FDIC insurance limit of $250,000 totaled approximately $299,728,000 (31.34% of total deposits), compared with $289,069,000 (30.85% of total deposits) at December 31, 2025. Excluding collateralized public deposits, uninsured deposits totaled approximately $259,615,000 (27.14% of total deposits) at March 31, 2026, compared with $252,818,000 (26.98% of total deposits) at December 31, 2025. These amounts are based on account balances without applying FDIC aggregation rules across accounts or ownership capacities and may differ from the actual uninsured portion. The Bank had no brokered deposits or other uninsured deposit-like instruments at March 31, 2026 or December 31, 2025.
Current report
On April 23, 2026, the federal banking agencies jointly adopted a final rule modifying the community bank leverage ratio (“CBLR”) framework, effective July 1, 2026, as further described in Note 10 to the consolidated financial statements. The Bank has not elected to use the CBLR framework and continues to calculate its regulatory capital ratios under the generally applicable risk-based capital rules described above. Management is evaluating whether to opt into the CBLR framework when the final rule becomes effective.
Current report
The increase in net income for the three months ended March 31, 2026, compared with the same period in 2025, was primarily attributable to higher net interest income, growth in noninterest income, a reduction in noninterest expense, and a recovery of credit losses in the current period compared to a provision for credit losses in the prior year period.
Current report
Net interest income increased to $8,734,000 for the three months ended March 31, 2026, from $7,719,000 for the same period in 2025, reflecting higher yields on earning assets and a lower cost of interest-bearing liabilities, including the impact of deposit repricing and the elimination of interest expense on capital notes following their retirement in the second quarter of 2025.
Current report
Noninterest expense decreased to $9,365,000 for the three months ended March 31, 2026, from $9,826,000 for the same period in 2025, primarily reflecting decreases in data processing and professional services expenses associated with the renegotiation of the Bank’s core processing contract, partially offset by increases in salaries and employee benefits related to higher production volumes and incentive compensation.
Current report
The annualized return on average assets was 1.07% for the three months ended March 31, 2026, compared with 0.33% for the same period in 2025. The improvement reflects the increase in net income driven by higher net interest income, growth in noninterest income, lower noninterest expense, and a recovery of credit losses in the current period.
Current report
For the three months ended March 31, 2026, total interest income was $11,849,000, compared with $11,234,000 for the same period in 2025, an increase of 5.5%. The increase was primarily attributable to higher yields on earning assets, partially offset by lower average balances of, and yields on, federal funds sold. The yield on average earning assets increased to 4.84% for the three months ended March 31, 2026, from 4.73% for the same period in 2025, primarily reflecting higher yields on loans (5.73% compared with 5.56%) and on the taxable securities portfolio (2.81% compared with 2.41%), as proceeds from lower-yielding maturities and paydowns were reinvested at current market rates. Average earning assets grew to $994,286,000 from $963,688,000, supported by deposit inflows that funded growth in the securities portfolio.
Current report
For the three months ended March 31, 2026, interest expense was $3,115,000, compared with $3,515,000 for the same period in 2025, a decline of 11.4%. The decrease was driven by a lower cost of interest-bearing liabilities, which declined to 1.54% for the three months ended March 31, 2026, from 1.78% for the same period in 2025, a reduction of 24 basis points. The decline was attributable to (i) lower rates paid on interest-bearing deposits, with the average rate on total interest-bearing deposits decreasing to 1.49% from 1.73%, reflecting the repricing of NOW, money market, and savings accounts (0.66% and 0.90% for the three months ended March 31, 2026, compared with 0.75% and 1.36% for the same period in 2025) and the repricing of maturing time deposits (3.37% compared with 3.82%); and (ii) the elimination of interest expense on the Company’s $10,050,000 of capital notes, which were retired at maturity in the second quarter of 2025. These benefits were partially offset by a higher rate paid on other borrowings (5.50% compared with 3.91%) following the Second Allonge to the NBB Note effective September 30, 2025.
Current report
Net interest income for the three months ended March 31, 2026, was $8,734,000, compared with $7,719,000 for the same period in 2025, an increase of 13.2%.
Current report
The net interest margin was 3.57% for the three months ended March 31, 2026, compared with 3.25% for the same period in 2025, an increase of 32 basis points. The expansion in net interest margin was primarily attributable to the 24 basis point reduction in the cost of interest-bearing liabilities described above, with the balance reflecting the 11 basis point increase in the yield on earning assets. Although short-term interest rates have stabilized, future rate movements could continue to influence the margin depending on loan repricing and deposit rate competition. For example,
Current report
While management does not currently anticipate a need to increase deposit rates, increases in market interest rates or competitive pressures could result in higher deposit costs, which would adversely impact net interest margin and profitability.
Current report
A stable interest rate environment may support net interest margin through continued repricing of interest-bearing liabilities and the maintenance of asset yields; however, margin performance will depend on competitive factors and balance sheet dynamics.
Current report
Income from an SBIC fund investment totaled $131,000 for the three months ended March 31, 2026, with nocomparable income in the prior year period.
Current report
There were no gains on sales of available-for-sale securities for the three months ended March 31, 2026 or March 31, 2025.
Current report
Management believes the growth in noninterest income for the first quarter of 2026, particularly in wealth management and mortgage banking, reflects the diversification of the Company’s revenue sources. Future levels of noninterest income will depend on a number of factors, including market conditions affecting wealth management assets under management, mortgage origination and sales volumes, and other items that may not recur in future periods.
Current report
Purchase mortgage originations totaled approximately $29,323,336, or 58.90%, of total mortgage loans originated in the three months ended March 31, 2026, as compared to approximately $28,323,336, or 83.99%, of the total mortgage loans originated in the same period in 2025. The decrease in the purchase share reflects a modest increase in refinance activity in the first quarter of 2026 relative to the prior-year period, consistent with the moderation in mortgage interest rates that has occurred since the highs reached during 2022 and 2023.
Current report
Mortgage interest rates remain elevated relative to the historic lows that prevailed during 2020 and 2021, and overall mortgage origination volume remains below pre-2022 levels. As a result, a substantial portion of existing residential mortgages carries a rate below current market rates, which management believes will continue to constrain the population of borrowers with an economic incentive to refinance. Due to the uncertainty surrounding current and near-term economic conditions, including inflation, geopolitical developments, and other macroeconomic factors, management cannot predict the future direction of mortgage rates. Management anticipates that, in the near term, purchase originations will continue to represent a significant portion of total mortgage activity, and that elevated interest rates relative to pre-2022 levels may continue to put pressure on revenue from the mortgage segment. Future levels of mortgage origination and refinance activity will depend on prevailing interest rates, housing market conditions, and other factors, many of which are outside the Company’s control.
Current report
Noninterest expense for the three months ended March 31, 2026, decreased to $9,365,000 from $9,826,000 for the same period in 2025, representing a decrease of 4.7%. The decrease primarily resulted from lower professional and outside services and data processing expenses associated with the renegotiation of the Company’s core processing contract, partially offset by higher salaries and employee benefits.
Current report
Total personnel expense (salaries and employee benefits) was $5,500,000 for the three months ended March 31, 2026, compared to $4,777,000 for the same period in 2025. The increase reflects higher commission expense associated with increased production volumes, performance-based incentive compensation accruals, and market compensation adjustments.
Current report
Data processing expense totaled $475,000 for the three months ended March 31, 2026, compared to $820,000 for the same period in 2025. The decrease reflects lower ongoing costs under the Company’s amended core processing contract.
Current report
Occupancy and equipment expenses were $608,000 for the three months ended March 31, 2026, compared to $570,000 for the same period in 2025, reflecting modest increases associated with facility maintenance and operational needs.
Current report
The Company expects that the amended core processing contract, which commenced April 1, 2025 and has a 65-month term, will continue to result in lower ongoing data processing and related costs compared to the prior arrangement.
Current report
The allowance for credit losses represents management’s estimate of expected credit losses inherent in the loan portfolio. The provision for (or recovery of) credit losses adjusts the allowance to a level deemed appropriate by management, while net charge-offs reduce the allowance. The determination of the allowance considers historical loss experience, current conditions, and reasonable and supportable forecasts, as well as loan-specific factors for individually evaluated loans.
Current report
The Company recorded a recovery of credit losses of $146,000 for the three months ended March 31, 2026, compared with a provision for credit losses of $137,000 for the same period in 2025. The recovery for the current period consisted of a $91,000 recovery related to the loan portfolio and a $55,000 recovery related to unfunded loan commitments (the latter recorded in other liabilities). The recovery on the loan portfolio reflects (i) a $12,473,000 decline in total loans during the quarter, (ii) continued favorable credit quality, with nonperforming loans declining to $1,450,000 at March 31, 2026 from $1,704,000 at December 31, 2025, and (iii) updated economic forecasts and other inputs to the Company’s CECL models. As discussed in Note 8, in the second quarter of 2025 the Company implemented updates to the quantitative CECL loss models for collectively evaluated loan segments, which revised certain maximum loss-rate parameters and incorporated additional post-COVID historical loss data. The updated model specifications, which contributed to a reduction in expected loss rates most notably in the commercial real estate and consumer segments, have remained in use through March 31, 2026, with no further specification changes.
Current report
Net charge-offs totaled $158,000 for the three months ended March 31, 2026, compared with $51,000 for the same period in 2025.
Current report
At March 31, 2026, nonperforming loans totaled $1,450,000, compared with $1,704,000 at December 31, 2025 and $1,799,000 at March 31, 2025. Nonperforming loans represented 0.22% of total loans at March 31, 2026, compared with 0.26% at December 31, 2025.
Current report
If interest on nonaccrual loans had been accrued, such income would have been approximately $86,000 for the three months ended March 31, 2026 and $37,000 for the three months ended March 31, 2025.
Current report
The effective tax rate for both periods was below the statutory rate, primarily due to the impact of tax-exempt income from municipal securities and earnings on bank-owned life insurance (“BOLI”). The increase in the effective tax rate for the current period compared to the prior year period reflects normal variability in the mix of taxable and tax-exempt income.
Current report
(2) Interest income on loans includes loan fees.
Removed paragraphs (39)
Previous report
Subject to regulatory approval, the Bank may open additional branches during the next two fiscal years. Although numerous factors could influence the Bank’s expansion plans, the following discussion provides a general overview of the additional branch locations that the Bank currently is considering, including the following property that we own and are holding for expansion:
Previous report
Although the Bank cannot predict thefinancial impact of each new branch with certainty, management generally expects that each new branch will become profitable within 12 to 18 months of operation.
Previous report
Total loans, excluding loans held for sale, increased to $659,586,000 on September 30, 2025, from $643,596,000 on December 31, 2024, an increase of 2.37%. Growth was driven primarily by increases in commercial and commercial real estate portfolios, reflecting ongoing regional business activity, while residential and consumer lending levels remained stable.
Previous report
We have expertise and a long history of originating and managing commercial real estate loans. Our strong credit underwriting process includes management and board oversight. We perform rigorous monitoring, stress testing and reporting of these portfolios at the management and board levels, and we continue tomonitor concentration levels in our commercial real estate loans monthly.
Previous report
The Bank does not have any non-owner occupied commercial loans secured by properties in major city centers. We have not seen an increase in delinquencies in loans secured by non-owner occupied commercial real estate.
Previous report
While we have not experienced unusual pressure on deposit balances or liquidity, management continues to closely monitor sources and uses of funds to meet cash flow requirements while seeking to maximize profits. The Company’s total uninsured deposits—amounts, subject to aggregation rules, that exceed the FDIC insurance limit of $250,000—were approximately $276,000,000, or 30% of total deposits, at September 30, 2025. These were estimated using the same methodologies and assumptions as regulatory reporting.
Previous report
At September 30, 2025, the Bank had a leverage ratio of 9.02%, a Tier 1 risk-based capital ratio and Common Equity Tier 1 (CET1) ratio of 11.41%, and a total risk-based capital ratio of 12.20%. As of both September 30, 2025 and December 31, 2024, the Bank’s regulatory capital levels exceeded those established for well-capitalized institutions.
Previous report
Stockholders’ equity totaled $76,972,000 at September 30, 2025, compared with $64,865,000 at December 31, 2024, an increase of 18.66%, primarily reflecting retained earnings growth and a reduction in accumulated other comprehensive loss due to
Previous report
improving unrealized positions on available-for-sale securities.
Previous report
The increase in net income for the three months ended September 30, 2025, compared with the same period in 2024, was primarily driven by higher net interest income, lower interest expense, and growth in noninterest income, partially offset by an increase in noninterest expense. The slight decrease in net income for the nine-month period ended September 30, 2025, compared with the same period in 2024, was primarily due to higher operating expenses associated with technology investments and personnel growth, which offset improvements in revenue and credit performance.
Previous report
Net interest income increased to $8,300,000 and $24,269,000 for the three and nine months ended September 30, 2025, from $7,509,000 and $21,550,000 for the same periods in 2024, reflecting growth in the loan portfolio and improved yields on earning assets.
Previous report
Noninterest expense increased to $9,160,000 and $28,441,000 for the three and nine months ended September 30, 2025, from $8,776,000 and $25,602,000 for the same periods in 2024, primarily reflecting increases in salaries and benefits, and, in the nine months ended September 30, 2025, consulting fees incurred in negotiation the Bank’s core provider contract.
Previous report
The improvement in profitability during the third quarter of 2025 reflects continued balance sheet growth, disciplined funding cost management, and stable asset quality, while year-to-date results were tempered by higher operating expenses associated with technology initiatives and regulatory compliance investments.
Previous report
For the three and nine months ended September 30, 2025, interest income increased to $11,771,000 and $34,643,000, respectively, compared with $11,563,000 and $33,007,000 for the same periods in 2024. The increase in interest income was primarily attributable to higher average loan balances and improved yields on earning assets. The average rate on loans was approximately 5.70% and 5.65%% for the three and nine months ended September 30, 2025, compared with 5.65% and 5.45% for the same periods in 2024. Yields on total interest-earning assets also rose, driven by loan repricing and origination of new loans at higher market rates.
Previous report
For the three and nine months ended September 30, 2025, interest expense was $3,471,000 and $10,374,000, compared with $4,054,000 and $11,457,000 for the same periods in 2024—a decline of 14.4% and 9.5%, respectively. The decrease in interest expense resulted primarily from repricing of maturing time deposits and money market accounts at lower rates, along with disciplined deposit pricing strategies during the period. The Company’s average rate paid on interest-bearing deposits and total interest-bearing liabilities was approximately 1.72% and 1.73%, respectively, for the three months ended September 30, 2025 compared with 2.01% and 2.05% for the same period in 2024. The Company’s average rate paid on interest-bearing deposits and total interest-bearing liabilities was approximately 1.70% and 1.74%, respectively, for the nine months ended September 30, 2025 compared with 1.93% and 1.97% for the same period in 2024.
Previous report
Net interest income for the three and nine months ended September 30, 2025, was $8,300,000 and $24,269,000, respectively, compared to $7,509,000 and $21,550,000 for the same periods in 2024, representing increases of 10.5% and 12.6%.
Previous report
Thenet interest margin was 3.44% for the quarter ended September 30, 2025, and 3.37% for the nine-month period, compared with 3.16% and 3.07% for the corresponding periods in 2024. Margin expansion was largely the result ofrising loan yields and lower funding costs, reflecting an improved balance between asset sensitivity and funding mix. Although short-term interest rates have stabilized, future rate movements could continue to influence the margin depending on loan repricing and deposit rate competition. For example,
Previous report
While management does not anticipate it will be necessary to raise deposit rates, if we need to raise rates on deposits, there likely would be an adverse impact on our margin and profitability.
Previous report
A stabilizing interest rate environment is likely to allow us to increase our net interest margin.
Previous report
Other income was$297,000 and$340,000, compared with$31,000 and$669,000 in the same 2024 periods. The increase for the three month period was due to SBIC fund income. The decrease for the nine month periods reflects reflects lower miscellaneous gains and fewer one-time income items.
Previous report
Gains on sales of available-for-sale securities totaled$27,000 for both the three- and nine-month periods ended September 30, 2025, compared with$42,000 and$82,000 for the corresponding 2024 periods.
Previous report
The increase in noninterest income for the third quarter demonstrates the Company’s ability to generate consistent fee-based revenue, particularly in wealth management and mortgage banking, despite lower securities gains and fewer nonrecurring items.
Previous report
Purchase mortgage originations totaled $42,830,847 and $123,948,096, or 81.22% and 84.36%, respectively, of total mortgage loans originated in the three and nine months ended September 30, 2025, as compared to $31,015,512 and $120,657,357, or 84.98% and 83.02%, respectively, of the total mortgage loans originated in the same periods in 2024. Because of a relatively higher mortgage interest rate environment, management anticipates that in the short term, purchase mortgage originations will continue to represent a significant percentage of mortgage originations. Management also believes that a continued elevated interest environment could continue to limit refinancing activity.
Previous report
Mortgage rates increased dramatically in 2022 and 2023 and, despite recent declines, remain elevated compared with recent history. While rates have generally stabilized or declined since then, he elevated interest rate environment continues to have a negative impact on mortgage origination volume compared to pre-2022 levels. Due to the uncertainty surrounding current and near-term economic conditions—arising from inflation, as well as geopolitical and economic concerns—management cannot predict future mortgage rates. Management also believes that relatively high interest rates may continue to put pressure on revenue from the mortgage segment.
Previous report
Noninterest expense for the three and nine months ended September 30, 2025, increased to $9,160,000 and $28,441,000, from $8,776,000 and $25,602,000 for the same periods in 2024 — representing increases of 4.4% for the quarter and 11.1% year-to-date. The increase primarily resulted from higher salaries and employee benefits and continued investment in technology, data processing, and customer-facing systems.
Previous report
Total personnel expense (salaries and employee benefits) was $5,516,000 and $15,650,000 for the three and nine months ended September 30, 2025, compared to $4,920,000 and $14,256,000 for the same periods in 2024, reflecting merit increases, normal annual adjustments, and staffing additions to support commercial and retail growth, as well as accruals for anticipated year-end employee compensation.
Previous report
Data processing expense totaled $381,000 and $1,984,000 for the three and nine months ended September 2025, compared to $794,000 and $2,352,000. The decrease in data processing costs was driven by lower ongoing fees following the renewal of the core processing system contract and the application of vendor credits.
Previous report
Occupancy and equipment expenses were $523,000 and $697,000, respectively, for the quarter, up modestly from $514,000 and $640,000 in the prior-year period, reflecting ongoing branch improvements and facility maintenance.
Previous report
The Company remains focused on managing expenses efficiently while investing in strategic initiatives to support long-term growth, technology advancement, and customer engagement.
Previous report
Management anticipates that the amended core-service provider contract, with its 65-month term which began April 1, 2025, will generate significant cost savings—projected at over $40,000 per month over the life of the agreement—as compared to our previous arrangement, subject to standard provisions regarding early termination or adjustment.
Previous report
The allowance for credit losses represents an amount that, in our judgment, is adequate to absorb expected losses in the loan portfolio. The provision for credit losses increases the allowance, while loans charged off, net of recoveries, reduce it. The provision is charged to earnings to bring the total allowance to a level deemed appropriate by management. Loans with a risk rating of 7 or below that are significantly past due, and loans with borrowers whose performance andfinancial condition indicate the Bank will likely be unable to collect all amounts when due, are evaluated for specific impairment. The general reserve component is based on an evaluation of general economic conditions, actual and expected credit losses, and loan performance measures.
Previous report
As part of our regular model governance cycle, we worked with our external CECL vendor in the second quarter of 2025 to update several inputs in our discounted cash flow models including the following: raising certain loss-rate ceilings, incorporating post-pandemic loss history, and updating prepayment and curtailment expectations. While these refinements better align the models with current credit conditions, they also shifted the second quarter’s allowance calculation (which impacted the nine months ended September 30, 2025) from what would otherwise have been a charge to earnings to a net recovery. See Note 8 for additional details. Management made no changes to the model in the third quarter 2025.
Previous report
Based on the application of the credit-loss calculation, the Bank recorded a provision for credit losses of $91,000 for the three months ended September 30, 2025, and a recovery of provision for credit losses of $300,000 for the nine months ended September 30, 2025, compared to a provision of $92,000 and a recovery of $584,000 for the same periods in 2024. The provision attributable to unfunded commitments and recorded in other liabilities was $82,000 for the three months ended September 30, 2025.
Previous report
Charged-off loans, which are loans that management deems uncollectible, are charged against the allowance for credit losses and constitute realized losses. The Bank recorded net charge-offs of approximately $20,000 for the three months ended September 30, 2025, compared with net recoveries of $21,000 for the same period in 2024. While a charged-off loan may subsequently be collected, such recoveries generally are realized over an extended period of time.
Previous report
At September 30, 2025, nonperforming loans totaled approximately $1,895,000, compared with $1,640,000 at December 31, 2024, and $1,295,000 at September 30, 2024. If interest on these loans had been accrued, such income cumulatively would have approximated $66,000, $72,000, and $16,000, as of the applicable dates.
Previous report
The Company’s income tax expense decreased for both the three- and nine-month periods ended September 30, 2025, primarily reflecting the impact of amended federal and state income tax returns filed for the 2021 through 2024 tax years. The amended filings resulted in a tax overpayment, which reduced the Company’s third-quarter tax payment and carried through to the year-to-date results. In addition, the effective tax rate was favorably affected by higher levels of tax-exempt income from municipal securities and tax-advantaged earnings on bank-owned life insurance (“BOLI”). These factors collectively reduced the Company’s effective tax rate below the statutory rate for both the quarterly and year-to-date periods.
Previous report
(1)Net accretion or amortization of deferred loan fees and costs are included in interest income.
Previous report
(1)Net accretion or amortization of deferred loan fees and costs are included in interest income.
Previous report
(2)Nonperforming loans are included in the average balances. However, interest income and yields calculated do not reflect any accrued interest associated with nonaccrual loans.
Reworded paragraphs (66)
Previous wording
This report contains statements that constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Statements made in this document and in any documents incorporated by reference that are not purely historical are forward-looking statements, including statements regarding management’s plans, objectives, or goals for future operations, products or services, and forecasts of revenues, earnings, or other performance measures. Forward-looking statements are based on current management expectations and, by their nature, are subject to risks and uncertainties. These statements generally may be identified by words such as “believe,” “expect,” “anticipate,” “plan,” “estimate,” “should,” “will,” “intend,” or similar expressions. Shareholders should note that many factors, some of which are discussed elsewhere in this document, could affect the future financial results of Financial and could cause those results to differ materially from those expressed in forward-looking statements. These factors, many of which are beyond Financial’s control, include, but are not limited to, the following:
Current wording
This report contains statements that constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Statements made in this document and in any documents incorporated by reference that are not purely historical are forward-looking statements, including statements regarding management’s plans, objectives, or goals for future operations, products or services, and forecasts of revenues, earnings, or other performance measures. Forward-looking statements are based on current management expectations and, by their nature, are subject to risks and uncertainties. These statements generally may be identified by words such as “believe,” “expect,” “anticipate,” “plan,” “estimate,” “should,” “will,” “intend,” or similar expressions. Shareholders should note that many factors, some of which are discussed elsewhere in this document and in our Annual Report on Form 10-K for the year ended December 31, 2025, could affect the future financial results of the Company and could cause those results to differ materially from those expressed in forward-looking statements. These factors, many of which are beyond the Company’s control, include, but are not limited to, the following:
Previous wording
Operating, legal, and regulatory risks, including the effects of legislative or regulatory developments affecting the financial industry generally or Financial specifically, such as government legislation and policies (including the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act and its related regulations), which change from time to time and over which we have no control, and increased competition from other providers of financial services due to such regulations.
Current wording
Operating, legal, and regulatory risks, including the effects of legislative or regulatory developments affecting the financial industry generally or the Company specifically, such as government legislation and policies (including the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act and its related regulations), which change from time to time and over which we have no control, and increased competition from other providers of financial services due to such regulations.
Previous wording
Economic, market, political, and competitive forces affecting Financial's banking and other businesses, including changes in interest rates, monetary policy, and general economic conditions, which may impact net interest income, credit quality, loan demand, or overall conditions in our market area.
Current wording
Economic, market, political, and competitive forces affecting the Company’s banking and other businesses, including changes in interest rates, monetary policy, and general economic conditions, which may impact net interest income, credit quality, loan demand, or overall conditions in our market area.
Previous wording
Geopolitical risks, including economic and political tensions with China, the ongoing war between Russia and Ukraine and potential expansion of combatants, sanctions on Russia, and the potential impact of tariffs, trade restrictions, or changes in U.S. trade policy on businesses in our market area and our business and agricultural borrowers, all of which may have a destabilizing effect on financial markets and economic activity and could indirectly affect credit quality, loan demand, or overall economic conditions in our market area.
Current wording
Geopolitical conflicts, international tensions, and related economic sanctions, including the potential impact of tariffs, trade restrictions, or changes in U.S. trade policy on businesses in our market area and our business and agricultural borrowers, all of which may have a destabilizing effect on financial markets and economic activity and could indirectly affect credit quality, loan demand, or overall economic conditions in our market area.
Previous wording
Compliance or operational risks related to new products, services, ventures, or lines of business, if any, that Financial may pursue or implement.
Current wording
Compliance or operational risks related to new products, services, ventures, or lines of business, if any, that the Company may pursue or implement.
Previous wording
The risk that Financial’s analysis of these risks and forces is incorrect or that the strategies developed to address them are unsuccessful.
Current wording
The risk that the Company’s analysis of these risks and forces is incorrect or that the strategies developed to address them are unsuccessful.
Previous wording
Other risks and uncertainties set forth in this Quarterly l Report on Form 10-Q and, from time to time, in our other filings with the Securities and Exchange Commission (“SEC”).
Current wording
Other risks and uncertainties set forth in this Quarterly Report on Form 10-Q, in our Annual Report on Form 10-K for the year ended December 31, 2025, and, from time to time, in our other filings with the Securities and Exchange Commission (“SEC”).
Previous wording
Bank of the James Financial Group, Inc.’s (“Financial” or the “Company”)financial statements are prepared in accordance with accounting principles generally accepted in the United States (GAAP). As a community bank primarily serving central Virginia, thefinancial information contained within our statements is, to a significant extent, based on measures of thefinancial effects of transactions and events that have already occurred, such as lending activities tied to local real estate markets and small business operations. A variety of factors—particularly regional economic conditions, fluctuations in interest rates, and changes in real estate values in our market area—could affect the ultimate value obtained when earning income, recognizing an expense, recovering an asset, or relieving a liability. In addition, GAAP itself may evolve from one previously acceptable method to another, potentially altering the timing of how these events impact our transactions, even if the underlying economics remain unchanged.
Current wording
Bank of the James Financial Group, Inc.’s (“Financial” or the “Company”) financial statements are prepared in accordance with accounting principles generally accepted in the United States (GAAP). As a community bank primarily serving central Virginia, the financial information contained within our statements is, to a significant extent, based on measures of the financial effects of transactions and events that have already occurred, such as lending activities tied to local real estate markets and small business operations. A variety of factors, particularly regional economic conditions, fluctuations in interest rates, and changes in real estate values in our market area, could affect the ultimate value obtained when earning income, recognizing an expense, recovering an asset, or relieving a liability. In addition, GAAP itself may evolve from one previously acceptable method to another, potentially altering the timing of how these events impact our transactions, even if the underlying economics remain unchanged.
Previous wording
Financial is abank holding company headquartered in Lynchburg, Virginia. Our primary business is retail banking which we conduct through our wholly-owned subsidiary, Bank of the James (which we refer to as the “Bank”). We conduct four other business activities: mortgage banking through the Bank’s Mortgage Division (which we refer to as “Mortgage”), investment services through the Bank’s Investment division (which we refer to as “Investment Division”), insurance activities through BOTJ Insurance, Inc., a subsidiary of the Bank, (which we refer to as “Insurance Business”), and as of December 31, 2021, investment advisory services through the Company’s wholly-owned subsidiary, Pettyjohn, Wood & White, Inc. (which we refer to as “PWW”).
Current wording
The Company is a bank holding company headquartered in Lynchburg, Virginia. Our primary business is retail banking which we conduct through our wholly-owned subsidiary, Bank of the James (which we refer to as the “Bank”). We conduct four other business activities: mortgage banking through the Bank’s Mortgage Division (which we refer to as “Mortgage”), investment services through the Bank’s Investment division (which we refer to as “Investment Division”), insurance activities through BOTJ Insurance, Inc., a subsidiary of the Bank, (which we refer to as “Insurance Business”), and as of December 31, 2021, investment advisory services through the Company’s wholly-owned subsidiary, Pettyjohn, Wood & White, Inc. (which we refer to as “PWW”).
Previous wording
We conduct our investment advisory business through PWW, which Financial acquired on December 31, 2021. PWW is a Lynchburg, Virginia-based investment advisory firm that has approximately $984,746,000 in assets under management and advisement as of September 30, 2025. PWW generates revenue primarily through investment advisory fees.
Current wording
PWW is a Lynchburg, Virginia-based investment advisory firm that generates revenue primarily through investment advisory fees and had approximately $1,010,000,000 in assets under management and advisement as of March 31, 2026.
Previous wording
The Investment division and the Insurance Business operate primarily out of offices located at the Main Street Office. PWW operates our investment advisory business primarily from its offices at 1925 Atherholt Road in Lynchburg.
Current wording
The Investment division and the Insurance Business operate primarily out of offices located at the Main Street Office. PWW operates the Company’s investment advisory business primarily from its offices at 1925 Atherholt Road in Lynchburg.
Previous wording
Real property located at 1925 Atherholt Road, Lynchburg, Virginia. On December 31, 2021, the Bank purchased real property located at 1925 Atherholt Road, Lynchburg, Virginia. The building currently serves as the offices for Financial’s wholly-owned subsidiary, PWW. PWW is currently leasing the space from the Bank on a month-to-month basis. While the Bank currently does not have a timeline for a branch at this location, the space is attractive for a branch due to its close proximity to Centra’s Lynchburg General Hospital. The investment needed to upfit the property will be minimal.
Current wording
1925 Atherholt Road, Lynchburg, Virginia currently serves as the office for the Company’s wholly-owned subsidiary, PWW, which leases the space from the Bank on a month-to-month basis. The property is held for possible future branch expansion, although the Bank does not currently have a timeline for opening a branch at this location.
Previous wording
The following discussion represents management’s discussion and analysis of thefinancial condition of Financial as of September 30, 2025 and December 31, 2024 and the results of operations of Financial for the three and nine-month periods ended September 30, 2025 and 2024. This discussion should be read in conjunction with thefinancial statements included elsewhere herein. Allfinancial statements have been prepared in accordance with accounting principles generally accepted in the United States of America.
Current wording
The following discussion and analysis presents management’s assessment of the financial condition of the Company as of March 31, 2026 and December 31, 2025, and the results of operations for the three-month periods ended March 31, 2026 and 2025. This discussion should be read in conjunction with the Company’s consolidated financial statements and related notes included elsewhere in this report. The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America.
Previous wording
Total assets were $1,020,125,000 on September 30, 2025, compared with $979,244,000 at December 31, 2024, an increase of 4.18%. The increase in total assets was primarily due to growth in federal funds sold, securities available-for-sale, and loans (net of the allowance for credit losses), reflecting continued loan demand and prudent liquidity management.
Current wording
Total assets were $1,061,189,000 on March 31, 2026, compared with $1,039,024,000 at December 31, 2025, an increase of 2.13%. The increase in total assets was primarily due to growth in federal funds sold and securities available-for-sale, reflecting deployment of available liquidity, partially offset by a decline in loans (net of the allowance for credit losses).
Previous wording
Total deposits increased from $882,404,000 as of December 31, 2024, to $919,796,000 on September 30, 2025, an increase of 4.24%. This growth was largely driven by customer inflows into money market and time deposit products as well as non-interet bearing deposits. The Company continues to utilize the reciprocal portion of the Insured Cash Sweep (ICS) program for customers requiring full FDIC insurance, and may re-deploy the non-reciprocal option as market and liquidity conditions warrant.
Current wording
Total deposits increased from $937,129,000 at December 31, 2025, to $956,552,000 at March 31, 2026, an increase of $19,423,000, or 2.07%. The growth was driven primarily by an increase in noninterest-bearing demand deposits of $13,306,000 and an increase in NOW, money market, and savings deposits of $6,554,000, while time deposit balances declined modestly by $437,000. The Company continues to utilize the reciprocal portion of the Insured Cash Sweep (ICS) program for customers requiring full FDIC insurance, and may redeploy the non-reciprocal option as market and liquidity conditions warrant.
Previous wording
The following summarizes the position of the Bank’s loan portfolio as of the dates indicated by dollar amount and percentages (dollar in thousands):
Current wording
The following summarizes the position of the Bank’s loan portfolio as of the dates indicated by dollar amounts and percentages (dollar in thousands):
Previous wording
Total loans, excluding loans held for sale and net of the allowance for loan losses, increased to $653,288,000 on September 30, 2025, from $636,552,000 on December 31, 2024, an increase of 2.63%. Growth was driven primarily by increases in commercial and commercial real estate portfolios, reflecting ongoing regional business activity, while residential and consumer lending levels remained stable.
Current wording
Total loans, excluding loans held for sale and net of the allowance for credit losses, decreased to $649,133,000 at March 31, 2026 from $661,357,000 at December 31, 2025, a decrease of 1.85%. The decline was primarily attributable to loan payoffs. While the Company experienced growth in certain commercial and commercial real estate portfolios, these increases were more than offset by the aforementioned paydowns, and residential and consumer lending levels remained relatively stable.
Previous wording
Loans held for sale totaled $3,766,000 at September 30, 2025, compared to $3,616,000 at December 31, 2024, an increase of 4.15%, due primarily to normal quarterly fluctuations in mortgage production and secondary market sales.
Current wording
Loans held for sale totaled $2,877,000 at March 31, 2026 compared to $3,472,000 at December 31, 2025, a decrease of 17.14%, due primarily to normal quarterly fluctuations in mortgage production and secondary market sales.
Previous wording
Subsegments of the loan portfolio are set forth in Note 8 of ourfinancial statements. As a community bank, the Bank is committed to growing assets through quality loan growth by providing credit to small and mid-size businesses and individuals within the markets it serves. Based on the loan portfolio as of September 30, 2025, non-owner-occupied commercial real estate loans and construction and land development loans totaled $230,162,000, representing approximately 34.9% of total loans.
Current wording
Subsegments of the loan portfolio are set forth in Note 8 to the consolidated financial statements. As of March 31, 2026, non-owner occupied commercial real estate loans and commercial construction and land development loans totaled $231,256,000 representing approximately 35.3% of total loans.
Previous wording
The Bank closely monitors concentrations within its commercial real estate loan portfolio. As of September 30, 2025, non-owner occupied commercial real estate loans totaled $215,798,000, or approximately 32.7% of total loans. This amount was calculated by purpose code and is consistent with the Call Report that the Bank files with the FDIC. The Bank has minimal exposure to loans secured by large office buildings or shopping centers (less than 5% of the non-owner occupied commercial real estate (CRE) portfolio). The majority of our non-owner occupied commercial loans are secured by smaller, multi-tenant properties diversified across various industries and geographies within our market areas.
Current wording
The Bank closely monitors concentrations within its commercial real estate loan portfolio. As of March 31, 2026, non-owner occupied commercial real estate loans totaled $213,638,000, or approximately 32.6% of total loans. The Bank’s exposure to higher-risk property types remains limited, with loans secured by large office buildings or shopping centers comprising less than 5% of the non-owner occupied commercial real estate portfolio. The portfolio is primarily secured by smaller, multi-tenant properties that are diversified across industries and geographic markets within the Bank’s footprint. The Bank does not have material exposure to loans secured by properties in major metropolitan central business districts, and delinquency levels within the commercial real estate portfolio remained stable during the period.
Previous wording
In addition, to help manage risk, we actively manage andmonitor our commercial real estate risk through the following, when appropriate:
Current wording
In addition, to help manage risk, the Bank actively monitors its commercial real estate portfolio through the following, as appropriate:
Previous wording
The following table sets forth information for owner occupied CRE Loans set forth the four largest categories of loans (classified by purpose code and collateral description) having the highest current principal balance:
Current wording
The following table sets forth information for non-owner occupied CRE loans for the five largest categories of loans (classified by purpose code and collateral description) having the highest current principal balance (dollars in thousands):
Previous wording
The following table sets forth information for non-owner occupied CRE loans for the four largest categories of loans (classified by purpose code and collateral description) having the highest current principal balance:
Current wording
The following table sets forth information for owner-occupied CRE loans for the four largest categories of loans, classified by purpose code and collateral description, having the highest current principal balance (dollars in thousands):
Previous wording
Total nonperforming assets, which consist of nonaccrual loans, loans past due 90 days or more and still accruing were $1,895,000 at September 30, 2025, compared with $1,640,000 at December 31, 2024. As discussed under “Results of Operations—Allowance and Provision for Credit Losses,” management has provided for any anticipated losses on these loans in the allowance for credit losses.
Current wording
Total nonperforming assets, which consist of nonperforming loans and other real estate owned, were $1,450,000 at March 31, 2026, compared with $1,704,000 at December 31, 2025. As discussed under “Results of Operations—Allowance and Provision for Credit Losses,” management believes the allowance for credit losses is adequate to absorb estimated losses inherent in the loan portfolio.
Previous wording
Loan payments received on nonaccrual loans are first applied to principal. When a loan is placed on nonaccrual status, all accrued but unpaid interest is reversed, accrual of interest is discontinued until repayment is assured, and additional provisions may be necessary for actual losses.
Current wording
When a loan is placed on nonaccrual status, all accrued but unpaid interest is reversed and the accrual of interest is discontinued until repayment is reasonably assured. Payments received on nonaccrual loans are generally applied to principal, and additional provisions may be recorded as necessary to reflect expected credit losses.
Previous wording
Other real estate owned (“OREO”) represents real property acquired by the Bank for debts previously contracted, including through foreclosure or deeds in lieu of foreclosure. We had no OREO at September 30, 2025 and December 31, 2024. The Bank neither acquired nor disposed of any OREO during the three and nine months ended September 30, 2025..
Current wording
Other real estate owned (“OREO”) represents real property acquired by the Bank for debts previously contracted, including through foreclosure or deeds in lieu of foreclosure. The Company had no OREO at March 31, 2026 or December 31, 2025, and did not acquire or dispose of any OREO during the three months ended March 31, 2026.
Previous wording
Cash and cash equivalents increased to $85,451,000 at September 30, 2025, from $73,309,000 at December 31, 2024. Cash and cash equivalents consist of cash due from correspondents, cash in vault, and overnight investments (including federal funds sold). The increase was primarily attributable to higher federal funds sold balances, which rose to $57,001,000 at September 30, 2025, compared to $50,022,000 at December 31, 2024. Deposit inflows during the period allowed management to deploy excess liquidity into overnight Fed funds. Cash and cash equivalents remain subject to routine fluctuations in transactional and professional settlement accounts.
Current wording
Cash and cash equivalents increased to $87,991,000 at March 31, 2026 from $84,475,000 at December 31, 2025. Cash and cash equivalents consist of cash due from correspondents, cash in vault, and overnight investments, including federal funds sold. The increase was primarily attributable to higher federal funds sold balances, which rose to $62,894,000 at March 31, 2026 compared to $55,937,000 at December 31, 2025, reflecting the deployment of excess liquidity generated from deposit inflows and loan payoffs.
Previous wording
Securities held-to-maturity decreased slightly to $3,594,000 at September 30, 2025, from $3,606,000 at December 31, 2024, due to normal net amortization of premiums.
Current wording
Securities held-to-maturity decreased slightly to $3,586,000 at March 31, 2026 from $3,590,000 at December 31, 2025, due to normal amortization of premiums.
Previous wording
Securities available-for-sale, carried at fair market value, increased to $202,506,000 at September 30, 2025, from $187,916,000 at December 31, 2024, an increase of $14,590,000, reflecting portfolio growth and reinvestment of excess liquidity, as well as an increase in fair value resulting from a decline in interest rates from December 31, 2024. As of September 30, 2025, unrealized losses on securities available‑for‑sale totaled $19.928 million pre‑tax and $15.743 million after tax (21% tax effect). These losses are primarily related to market interest rate movements, and management does not expect to realize them, as the Bank has both the intent and ability to hold the securities until recovery or maturity.
Current wording
Securities available-for-sale, carried at fair value, increased to $244,699,000 at March 31, 2026 from $214,128,000 at December 31, 2025, an increase of $30,571,000. The increase reflects $33,628,000 of securities purchases funded by the reinvestment of excess liquidity from deposit inflows, partially offset by $1,686,000 of maturities, calls, and paydowns and a $1,371,000 decline in the pre-tax fair value of the portfolio resulting from changes in market interest rates during the quarter, which contributed to a $1,083,000 increase in after-tax accumulated other comprehensive loss. As of March 31, 2026, unrealized losses on securities available-for-sale totaled $20,278,000 pre-tax and $16,020,000 after tax. These unrealized losses are primarily attributable to changes in market interest rates, and management does not expect to realize such losses, as the Bank has the intent and ability to hold these securities until recovery of fair value or maturity.
Previous wording
Restricted stock, consisting of stock in the Federal Reserve, the Federal Home Loan Bank of Atlanta (FHLBA), and our correspondent banks, totaled $1,828,000 at September 30, 2025, compared with $1,821,000 at December 31, 2024. These holdings are carried at cost and evaluated for impairment based on par value recoverability rather than temporary market declines.
Current wording
Restricted stock, consisting of stock in the Federal Reserve, the Federal Home Loan Bank of Atlanta (FHLBA), and correspondent banks, totaled $1,828,000 at March 31, 2026 and December 31, 2025. These holdings are carried at cost and evaluated for impairment based on par value recoverability.
Previous wording
Liquid assets, on a consolidated basis, were $287,957,000 on September 30, 2025, in the form of cash, interest-bearing and noninterest-bearing deposits with banks, federal funds sold, and available-for-sale investments. This represents an increase from December 31, 2024, when liquid assets totaled approximately $261,225,000, primarily reflecting higher balances in federal funds sold and investment securities.
Current wording
Liquid assets, on a consolidated basis, totaled $332,690,000 at March 31, 2026, consisting of cash, interest-bearing and noninterest-bearing deposits with banks, federal funds sold, and available-for-sale securities. This represents an increase from $298,603,000 at December 31, 2025, primarily reflecting higher balances in federal funds sold and securities available-for-sale due to the deployment of excess liquidity generated from deposit inflows.
Previous wording
approximately $34,000,000 of our available-for-sale securities as collateral with correspondent banks, including the FHLBA, for collateralized lines of credit;
Current wording
approximately $38,697,000 of our available-for-sale securities as collateral with correspondent banks, including the FHLBA, for collateralized lines of credit;
Previous wording
approximately $51,000,000 of our available-for-sale securities as security for public deposits; and
Current wording
approximately $50,086,000 of our available-for-sale securities as security for public deposits; and
Previous wording
approximately $25,000,000 of our available-for-sale securities as collateral for advances at the Federal Reserve Bank’s discount window.
Current wording
approximately $25,626,000 of our available-for-sale securities as collateral for advances at the Federal Reserve Bank’s discount window.
Previous wording
If additional liquidity is needed, the Bank can purchase up to $53,000,000 of Fed funds through correspondent relationships and borrow from the FHLBA by pledging additional investments. In addition, the Bank has borrowing capacity with the FHLBA of approximately $17,000,000 related to pledged loans. As of September 30, 2025, the Bank had no borrowings from any of these sources. Management believes that liquid assets were adequate at September 30, 2025 and anticipates additional liquidity from deposit growth and loan repayments.
Current wording
If additional liquidity is needed, the Bank can purchase up to $58,000,000 of Fed funds through correspondent relationships. In addition, the Bank has total borrowing capacity with the Federal Home Loan Bank of Atlanta (“FHLBA”) of approximately $46,593,000 based on pledged collateral, consisting of approximately $16,893,000 supported by pledged loans and approximately $29,700,000 supported by pledged investment securities. The Bank may obtain additional FHLBA capacity by pledging additional eligible loans or investment securities. As of March 31, 2026, the Bank had no borrowings from any of these sources. Management believes that liquid assets were adequate at March 31, 2026 and anticipates additional liquidity from deposit growth and loan repayments.
Previous wording
The Tier 1 risk-based capital ratio decreased modestly from December 31, 2024, primarily due to the dividend payment to Financial of $5,000,000 during 2025, which Financial used toward the retirement of approximately $10,050,000 in debt at maturity. This impact was partially offset by net income of $6,298,000 for the nine months ended September 30, 2025.
Current wording
The Tier 1 risk-based capital ratio increased from December 31, 2025, primarily due to net income of $2,774,000 for the three months ended March 31, 2026, partially offset by the $455,000 dividend paid to common stockholders.
Previous wording
The above tables set forth the capital position and analysis for the Bank only. Because total assets on a consolidated basis are less than $3,000,000,000, Financial is not subject to the consolidated capital requirements imposed by the Bank Holding Company Act. Consequently, Financial does not calculate its financial ratios on a consolidated basis. If calculated, the capital ratios for the Company on a consolidated basis at September 30, 2025 would be lower than those of the Bank, because a portion of the proceeds from the sale of notes previously issued by the holding company were contributed to the Bank as equity.
Current wording
The above tables set forth the capital position and analysis for the Bank only. Because total assets on a consolidated basis are less than $3,000,000,000, The Company is not subject to the capital requirements imposed by the Bank Holding Company Act. Consequently, The Company does not calculate its financial ratios on a consolidated basis. If calculated, management expects that the capital ratios for the Company on a consolidated basis at March 31, 2026 would be substantially equivalent to those of the Bank.
Previous wording
In July 2013, the Federal Reserve Board approved a final rule establishing a regulatory capital framework for smaller, less complex financial institutions. The rule was fully implemented on January 1, 2019, and established a capital conservation buffer of 2.5%. As a result, the Bank is required to maintain a minimum ratio of Tier 1 capital to average total assets of 4.00% (exclusive of the capital conservation buffer), a minimum ratio of common equity Tier 1 capital to risk-weighted assets of 7.0% (inclusive of the capital conservation buffer), and a Tier 1 risk-based capital ratio of 8.5% (inclusive of the capital conservation buffer). Failure to maintain the capital conservation buffer will limit the ability of the Bank and Financial to pay dividends, repurchase shares, or pay discretionary bonuses. The rule also raised the minimum ratio of Tier 1 capital to risk-weighted assets from 4% to 6% and includes a minimum leverage ratio of 4% for all banking organizations.
Current wording
In July 2013, the Federal Reserve Board approved a final rule establishing a regulatory capital framework for smaller, less complex financial institutions. The rule was fully implemented on January 1, 2019, and established a capital conservation buffer of 2.5%. As a result, the Bank is required to maintain a minimum ratio of Tier 1 capital to average total assets of 4.00% (exclusive of the capital conservation buffer), a minimum ratio of common equity Tier 1 capital to risk-weighted assets of 7.0% (inclusive of the capital conservation buffer), and a Tier 1 risk-based capital ratio of 8.5% (inclusive of the capital conservation buffer). Failure to maintain the capital conservation buffer will limit the ability of the Bank and The Company to pay dividends, repurchase shares, or pay discretionary bonuses. The rule also raised the minimum ratio of Tier 1 capital to risk-weighted assets from 4% to 6% and includes a minimum leverage ratio of 4% for all banking organizations.
Previous wording
Comparison of the Three and Nine Months Ended September 30, 2025 and 2024
Current wording
Comparison of the Three Months Ended March 31, 2026 and 2025
Previous wording
For the three and nine months ended September 30, 2025, the Company reported net income of $2,752,000 and $6,298,000, respectively, compared with net income of $1,990,000 and $6,326,000 for the same periods in 2024. This represents an increase of $762,000, or 38.3%, for the three-month period, and a slight decrease of $28,000, or 0.4%, for the nine-month period.
Current wording
For the three months ended March 31, 2026, the Company reported net income of $2,774,000, compared with net income of $842,000 for the same period in 2025, an increase of $1,932,000, or 229.5%.
Showing the first 40 of 66 pairs. Open the source sections for the rest.
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
As of September 30, 2025, the Bank had no borrowings from any of these sources. Management believes that liquid assets were adequate at September 30, 2025. Management anticipates that additional liquidity will be provided by the growth in deposit accounts and loan repayments from customers.
Previous report — wording carried elsewhere
The fundamental source of the Bank’s net revenue isnet interest income—the difference between (i) interest and dividend income on interest-earning assets (primarily loans, investment securities, and other investments) and (ii) interest expense on interest-bearing liabilities (principally deposits and other borrowings).
Previous report — wording carried elsewhere
(3)The interest income and yields calculated on securities have been tax affected to reflect any tax-exempt interest on municipal securities. Assumed income tax rates of 21% were used for the periods presented.