Bank of the James Financial Group, Inc. operates as the bank holding company for Bank of the James that provides general retail and commercial banking services to individuals, businesses, associations and organizations, and governmental authorities in Virginia, the Unites States. It offers checking, savings, individual retirement, and health care saving accounts, as well as other time deposits, including money market accounts and certificates of deposit. The company also offers loans to small- and medium-sized businesses for the purchases of equipment, facilities upgrades, inventory acquisition, and various working capital purposes; commercial and residential construction and development loans; commercial real estate mortgage loans; residential mortgage loans; and secured and unsecured consumer loans, such as lines of credit and overdraft lines of credit, as well as personal, automobile, installment, demand, and home equity loans for personal, family, or household purposes. In addition, it provides other banking services, including safe deposit boxes, traveler's checks, direct deposit of payroll and social security checks, automatic drafts for various accounts, treasury management, and credit card merchant services. Further, the company offers securities brokerage and investment services; and telephone and internet banking services comprising online bill pay, as well as acts as an agent for insurance and annuity products. It operates through a network of 16 full-service offices, 2 limited-service offices, and 1 residential mortgage loan production office. The company was founded in 1998 and is headquartered in Lynchburg, Virginia.
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- Bank of America, but for central Virginia.
- A regional JPMorgan Chase, serving the Lynchburg, Virginia area.
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- Deposit Accounts: Bank of the James Financial provides various deposit products including checking, savings, money market, and certificate of deposit accounts for individuals and businesses.
- Lending Services: The bank offers diverse loan products such as residential mortgages, consumer loans, commercial real estate loans, and commercial and industrial loans.
- Online & Mobile Banking: These digital platforms enable customers to conveniently manage their accounts, transfer funds, and pay bills remotely.
- Treasury Management Services: Bank of the James offers comprehensive cash management solutions, fraud protection, and payment processing specifically for its business clients.
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Bank of the James Financial (symbol: BOTJ), as a community bank, serves a diverse customer base rather than having a few identifiable "major customers" that are other public companies. Its business model focuses on providing a wide range of financial products and services to individuals and businesses within its local markets in Central Virginia.
Given the nature of its operations and the typical structure of a community bank's customer base, BOTJ does not have major customers that are publicly traded companies whose names and symbols could be listed. Instead, its customer base is broadly categorized as follows:
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Individual Consumers: This category includes individuals and households who utilize a variety of personal banking services. These services encompass checking accounts, savings accounts, money market accounts, certificates of deposit, residential mortgages, home equity lines of credit, and various personal loan products.
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Small to Medium-sized Businesses (SMBs): This segment comprises local businesses, including sole proprietorships, partnerships, and privately-held corporations. They require commercial banking services such as business checking and savings accounts, commercial real estate loans, lines of credit, equipment financing, treasury management services, and merchant services. These are typically local enterprises rather than large, publicly-traded entities.
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Commercial Real Estate (CRE) Investors and Developers: This category includes individuals and businesses focused on the acquisition, development, and management of commercial properties. They often utilize specialized loan products, including construction loans, term loans for income-producing properties, and lines of credit tailored for real estate projects.
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Robert R. Chapman III, Chief Executive Officer
Mr. Chapman was instrumental in forming Bank of the James in 1999 as a co-organizer. He was named President of Bank of the James in 2003 and President of Bank of the James Financial Group in 2004. Prior to joining the bank, he served as Vice President and Commercial Account Manager at Crestar Bank for 15 years. He is a 1984 graduate of Virginia Military Institute with a bachelor's degree in Economics and served as a First Lieutenant in the United States Army. Mr. Chapman is also a 2002 graduate of the American Bankers Association (ABA) Stonier Graduate School of Banking.
J. Todd Scruggs, Executive Vice President, Chief Financial Officer, Secretary & Treasurer
Mr. Scruggs is a co-organizer of Bank of the James and has served as its Chief Financial Officer since its formation in 1999. His responsibilities include preparing and reviewing financial information, investments, asset/liability management, and regulatory matters. Prior to joining Bank of the James, Mr. Scruggs was a Financial Consultant and an Investment Representative for Crestar Securities Corp. He holds a Bachelor of Science degree in Commerce from the University of Virginia McIntire School of Commerce and is a graduate of the University of South Carolina School of Graduate Bank Investment Management. Effective January 1, 2026, Mr. Scruggs will transition to the newly created role of Chief Investment Officer.
Michael A. Syrek, President
Mr. Syrek serves as the President of Bank of the James.
Brandon P. Farmer, Executive Vice President and Chief Operations Officer
Mr. Farmer holds the position of Executive Vice President and Chief Operations Officer at Bank of the James.
Eric J. Sorenson, Jr., Executive Vice President and General Counsel (Incoming Chief Financial Officer)
Mr. Sorenson has served as Executive Vice President and General Counsel of the Bank since 2022. He has advised the bank on regulatory, legal, and financial matters for over 25 years. Prior to joining the bank full-time in 2022, he worked with the company for more than 20 years as outside counsel. Mr. Sorenson is appointed to succeed J. Todd Scruggs as Chief Financial Officer, effective January 1, 2026.
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- Digital-first banks and fintech platforms: These entities (e.g., Ally Bank, Chime, SoFi, various online lenders, robo-advisors) offer banking services, loans, and wealth management through highly intuitive mobile apps and web platforms. They often boast lower fees, higher interest rates on deposits, faster loan approvals, and personalized digital tools. This directly challenges BOTJ's ability to retain and attract customers who prioritize digital convenience and seamless user experience over traditional branch banking. Even within a local market, customers are increasingly willing to bank digitally with non-local entities.
- Big Tech companies integrating financial services into their ecosystems: While not full-service banks yet, companies like Apple (Apple Card, Apple Pay, Wallet services), Google (Google Pay, Google Wallet), and Amazon (lending to merchants) are steadily expanding their financial service offerings. They leverage massive user bases, integrated ecosystems, and consumer trust to provide convenient payment solutions, credit, and even savings products. This can disintermediate traditional banks by handling transactions, storing value, and offering credit outside the conventional banking system, eroding the necessity for some core banking relationships.
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Bank of the James Financial (symbol: BOTJ) operates as a community bank primarily serving the Central Virginia area, with expanded operations across other regions of Virginia. Its main products and services include personal, business, and online banking, various loan types (personal, business, and mortgage), and investment services. The addressable market sizes for its key offerings within Virginia are detailed below.
Addressable Markets in Virginia:
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Commercial Banking: The commercial banking industry in Virginia had an estimated market size of $24.8 billion in 2025. This market has shown a growth rate of 7.0% annually from 2020 to 2025, with 2,062 businesses operating within this sector in Virginia in 2025.
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Deposits: The total deposit market in Virginia varies by region. As of Q2 2025, major deposit markets in Virginia include:
- Washington-Arlington-Alexandria, DC-VA-MD-WV: approximately $314.7 billion.
- Richmond, VA: approximately $67.7 billion.
- Virginia Beach-Chesapeake-Norfolk, VA-NC: approximately $30 billion.
- Roanoke, VA: approximately $8.7 billion.
- Lynchburg, VA (where Bank of the James has a significant presence): approximately $6.1 billion.
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Mortgage Lending: The Virginia housing market saw 9,391 homes sold in September 2025, with a median home price of $455,500. In August 2025, the median home sales price in Virginia was $420,000. The average mortgage loan size in Virginia is $365,579.
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Investment Services: Null
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Bank of the James Financial (symbol: BOTJ) is expected to drive future revenue growth over the next 2-3 years through several key strategies:
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Continued Loan Growth, Particularly Commercial Real Estate (CRE) and Commercial Lending: The company has demonstrated consistent growth in its loan portfolio, with a specific emphasis on commercial real estate and commercial lending. This focus has been cited as a primary factor in increased total interest income. For example, the bank's Q3 2025 earnings report highlighted "higher yields on loans and commercial real estate loan growth" as a significant contributor to the rise in total interest income. Similarly, the Q2 2025 report noted that total interest income increased, driven by higher loan yields and commercial real estate growth. The CEO also specifically mentioned "continued traction in commercial lending" in Q2 2025.
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Net Interest Margin (NIM) Expansion and Effective Rate Management: Bank of the James Financial has shown an ability to improve its net interest margin through strategic management of loan yields and interest expenses. The net interest margin improved to 3.44% in Q3 2025 from 3.16% in Q3 2024, reflecting effective rate management strategies. The Q2 2025 report also indicated an improved NIM of 3.45%, attributed to effective rate management and a focus on high-quality interest-earning assets. Management has emphasized a consistent improvement in net interest margin and interest spread by keeping loan yields aligned with the prevailing interest rate environment and controlling interest expenses.
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Growth in Lower-Cost Core Deposits: A continued focus on attracting and retaining core deposits is a crucial driver for managing funding costs and enhancing profitability. Both the Q3 2025 and Q2 2025 earnings reports highlighted the bank's ongoing strategy of "growing core deposits (noninterest bearing demand deposits, NOW, money market and savings)" as a factor in increased total deposits. This approach helps to lower the overall cost of funds and improve net interest income.
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Diversification of Revenue Streams and Noninterest Income Growth: The bank benefits from a balanced approach to revenue generation beyond traditional interest income. The CEO has pointed to a "balanced revenue stream from commercial banking, wealth management, and mortgage originations" as a source of financial stability. Noninterest income saw an increase in Q3 2025, primarily driven by "fees from debit card activity and gains on loan sales." The company's offerings also include investment advisory services through its subsidiary, Pettyjohn, Wood & White, Inc.
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Strategic Geographic Footprint and Community Banking Growth: Bank of the James Financial operates across several Virginia markets, including the greater Lynchburg metropolitan statistical area, Blacksburg, Buchanan, Charlottesville, Harrisonburg, Lexington, Nellysford, Roanoke, and Wytheville. The bank has expanded its geographic footprint beyond its initial origins to serve communities across various Virginia counties. Sustained penetration and growth within these existing community banking markets are expected to contribute to future revenue expansion.
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Bank of the James Financial (symbol: BOTJ) has made the following capital allocation decisions over the last 3-5 years:
Share Repurchases
- The company repurchased 85,319 shares of its common stock in 2023.
- Combined with buybacks in 2022, Bank of the James Financial repurchased approximately 4% of its common stock over the two-year period (2022-2023).
Share Issuance
- In 2021, Bank of the James issued a 10% stock dividend.
Outbound Investments
- In December 2021, Bank of the James acquired Pettyjohn, Wood & White, Inc., an SEC-registered investment advisor. This acquisition expanded the company's services to include investment advisory and financial planning.
Capital Expenditures
- The net book value of premises and equipment was $19.378 million as of September 30, 2024, increasing from $18.141 million at December 31, 2023.
