Bank of the James Financial Group, Inc. (BOTJ) | Investment Case

1. Company Snapshot

1.a. Company Description

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.

Show Full description

1.b. Last Insights on BOTJ

Bank of the James Financial Group, Inc.'s recent performance was positively driven by robust Q2 2025 financial results. The company's corrected earnings release highlighted total assets of $1.004 billion and loan balances of $649.09 million as of June 30, 2025. A corrected and transparent disclosure rectifies prior typos, potentially bolstering investor confidence. The corrected figures underscore the bank's steady growth, with loan balances increasing from $636.55 million at December 31, 2024. This upward trend may indicate a strong financial position.

1.c. Company Highlights

Last Price	17.8
Change Percentage	0.42%
Open	17.89
Previous Close	17.73
Market Cap ( Millions)	81
Volume	3050
Year High	18.5
Year Low	11.56
M A 50	16.48
M A 200	14.73

FCF Yield	13.89%
Dividend Yield	2.25%
ROE	11.23%
Debt / Equity	11.48%
Net Debt / EBIDTA	-322.23%
Price To Book	1.05
Price Earnings Ratio	10.22
Price To FCF	7.2
Price To sales	1.62
EV / EBITDA	10.06

2. Transcript Summary

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3. NewsRoom

Bank of the James Q3 Earnings Rise Y/Y, Profit Margin Expands

Nov -04

Source: zacks.com

Bank of the James Announces CFO–CIO Transition and Appointment of New Chief Financial Officer

Oct -30

Source: globenewswire.com

Bank of the James Announces Third Quarter, First Nine Months of 2025 Financial Results

Oct -30

Source: globenewswire.com

CORRECTING and REPLACING "Bank of the James Announces Second Quarter, First Half of 2025 Financial Results"; Corrects Typos in Narrative Related to Total Assets and Loan Balances

Aug -05

Source: globenewswire.com

Bank of the James Announces First Quarter of 2025 Financial Results

Apr -30

Source: globenewswire.com

Bank of the James Announces Fourth Quarter, Full Year of 2024 Financial Results and Declaration of Dividend

Jan -31

Source: globenewswire.com

Bank of the James Announces Third Quarter, First Nine Months of 2024 Financial Results and Declaration of Dividend

Oct -25

Source: globenewswire.com

Bank of the James Announces Second Quarter, First Half of 2024 Financial Results and Declaration of Dividend

Jul -26

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.57%)

6. Segments

Community Banking

Expected Growth: 5.5%

Growing demand for personalized banking services, increasing adoption of digital banking platforms, and expanding presence in local communities drive the growth of community banking services.

Investment Advisory Services

Expected Growth: 7.2%

Growing demand for personalized investment management and financial planning services, increasing adoption of digital wealth management platforms, and rising need for retirement planning among individuals and businesses are expected to drive the growth of Bank of the James Financial Group's Investment Advisory Services.

Mortgage

Expected Growth: 4.5%

The Mortgage from Bank of the James Financial Group, Inc. is poised for growth driven by competitive rates and flexible repayment terms, appealing to homebuyers and refinancers. This, coupled with increasing demand for housing and low interest rates, will fuel market expansion.

7. Detailed Products

Personal Banking

Bank of the James Financial Group, Inc. offers a range of personal banking services, including checking and savings accounts, credit cards, personal loans, and mortgages.

Business Banking

The company provides business banking services, including business checking and savings accounts, commercial loans, credit cards, and cash management services.

Wealth Management

Bank of the James Financial Group, Inc. offers wealth management services, including investment management, retirement planning, and estate planning.

Mortgage Lending

The company provides mortgage lending services, including residential and commercial mortgage loans, refinancing, and construction loans.

Insurance Services

Bank of the James Financial Group, Inc. offers insurance services, including life insurance, disability insurance, and long-term care insurance.

Investment Services

The company provides investment services, including brokerage services, investment advice, and portfolio management.

8. Bank of the James Financial Group, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Bank of the James Financial Group, Inc. is medium due to the presence of alternative financial institutions and online banking services.

Bargaining Power Of Customers

The bargaining power of customers for Bank of the James Financial Group, Inc. is low due to the lack of negotiating power of individual customers.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Bank of the James Financial Group, Inc. is medium due to the presence of multiple suppliers of financial services and technology.

Threat Of New Entrants

The threat of new entrants for Bank of the James Financial Group, Inc. is high due to the ease of entry into the financial services industry and the presence of fintech startups.

Intensity Of Rivalry

The intensity of rivalry for Bank of the James Financial Group, Inc. is high due to the presence of multiple competitors in the financial services industry and the need to differentiate itself.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	25.03%
Debt Cost	7.56%
Equity Weight	74.97%
Equity Cost	7.56%
WACC	7.56%
Leverage	33.38%

11. Quality Control: Bank of the James Financial Group, Inc. passed 3 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Inefficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Southern States Bancshares

A-Score: 6.9/10

Value: 6.8

Growth: 8.1

Quality: 7.6

Yield: 2.0

Momentum: 8.0

Volatility: 8.7

1-Year Total Return ->

Heritage Financial

A-Score: 6.5/10

Value: 6.0

Growth: 3.9

Quality: 6.8

Yield: 8.0

Momentum: 7.0

Volatility: 7.3

1-Year Total Return ->

Univest Financial

A-Score: 6.3/10

Value: 7.2

Growth: 5.0

Quality: 6.5

Yield: 6.0

Momentum: 6.0

Volatility: 7.3

1-Year Total Return ->

Citizens Community Bancorp

A-Score: 6.2/10

Value: 6.8

Growth: 5.2

Quality: 5.6

Yield: 4.0

Momentum: 7.0

Volatility: 8.7

1-Year Total Return ->

Bank of the James Financial

A-Score: 5.6/10

Value: 3.1

Growth: 5.6

Quality: 4.4

Yield: 5.0

Momentum: 8.5

Volatility: 7.3

1-Year Total Return ->

OptimumBank

A-Score: 5.6/10

Value: 9.1

Growth: 6.4

Quality: 8.0

Yield: 0.0

Momentum: 2.5

Volatility: 7.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-4.74%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

7.56%

Bank of the James Financial Group, Inc. - US4702991088

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on BOTJ

1.c. Company Highlights

Average Quality

Medium Volatility

Fairly Valued

Stable Momentum

Average Growth

Cheaper

Strong Momentum

Average Yield

Expensive

Lower Quality

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.57%)

6. Segments

Community Banking

Expected Growth: 5.5%

Investment Advisory Services

Expected Growth: 7.2%

Mortgage

Expected Growth: 4.5%

7. Detailed Products

Personal Banking

Business Banking

Wealth Management

Mortgage Lending

Insurance Services

Investment Services

8. Bank of the James Financial Group, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Bank of the James Financial Group, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

17.8$

Current Price

17.8$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA