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Bank of the James Financial Group, Inc.

Ticker
BOTJ
Sector
Community banking
Dated
23 September 2026
Stance
BUY (initiated)

Priced as a plain Virginia community bank at 10.7x trailing earnings. Return on equity rose to 14.8% from 10.75% a year earlier, and the wealth arm needs almost no capital.

Price (29 Sep 26)
$27.04
Price target (12m)
$32.90
Scenario value*
$31.83
Bear / Base / Bull
$23.18 / $32.88 / $38.36
Market cap
$122.9M
Enterprise value
$96.0M
Free float
88% of S/O
Avg daily vol, 3m
34k
Short interest
0.23%, -38bps
Institutional own.
32%
Largest holder
Fourthstone LLC, 7.36%
Insider and board
12%

*Probability-weighted, 25/50/25, over 12 months. Price target is the base case, rounded to the nearest ten cents.

The thesis

  1. The balance sheet has room to lend. Loans are 73.4% of deposits, leaving $249.1M of deposits not yet lent out, and loans grew $24.7M in the first half of 2026 without wholesale funding.
  2. A sale is a live option. Directors and officers own 12% of the shares, the CFO of 27 years retired in January 2026, and deposits run 36.3% above loans, which makes BOTJ a clean target for a larger Virginia bank.
  3. The wealth arm is valued as if it were loans. Pettyjohn, Wood & White managed $1.091B at 30 June 2026 and its fees rose 12.8% to $1.47M in Q2, yet the market prices it inside a bank multiple.

Read the whole thing

The business, the market, the financials, the valuation with its scenarios, the risks and the catalysts. A PDF of 6 pages, 674 KB, sent to you, free.

Bank of the James Financial Group, Inc.

The full report, free. We send it as a PDF attachment, and we use the address for new research and nothing else.

Independent research. This is not investment advice and is not a recommendation to buy or sell any security. Please consult an accredited financial adviser before making any decision.

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