BANK OF THE JAMES FINANCIAL GROUP INC Leases Disclosure
The Company accounts for its leases under ASC 842, Leases. Right-of-use assets and lease liabilities are included in and , respectively, on the Consolidated Balance Sheets.
Lease liabilities represent the Company’s obligation to make lease payments and are measured as the present value of remaining contractual cash flows, discounted at the Company’s incremental borrowing rate in effect at the lease commencement date. Right-of-use assets represent the Company’s right to use the underlying asset for the lease term and are measured as the lease liability adjusted for prepaid rent, initial direct costs, and lease incentives received from the lessor.
The Company leases four operating locations under long-term leases. Two leases are classified as operating leases and two are classified as finance leases. Certain leases include options to extend the lease term, which are included in the measurement of lease liabilities to the extent the Company is reasonably certain to exercise the options. The lease agreements do not contain residual value guarantees, dividend restrictions, or other financial covenants.
The Bank leases approximately 32,400 square feet of office space at 828 Main Street, Lynchburg, Virginia, which serves as the Bank’s principal office, from Jamesview Investments, LLC (“Jamesview”), a Virginia limited liability company wholly owned by William C. Bryant III, a director of the Company. This lease is classified as a finance lease.
The Bank originally entered into this lease in October 2003. The lease was subsequently amended and restated effective June 1, 2019, with an initial term running through July 31, 2025. The Bank exercised its first renewal option, extending the term through July 31, 2029, with two additional -year renewal options remaining. Monthly rent installments during the current renewal term are approximately $39,000, subject to variation based on parking space usage, plus an additional security fee. Total rent payments to Jamesview during 2025 were approximately $468,000. The lease was approved in accordance with the Company’s related party transaction approval policies. This lease is classified as a finance lease with a lease liability of $1.60 million and $2.00 million as of December 31, 2025 and 2024, respectively.
Note 23 – Leases (continued)
The following table represents information about the Company’s operating leases:
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| December 31, | ||||
(Dollars in thousands) | 2025 |
| 2024 | ||
Lease liabilities | $ | 1,179 |
| $ | 1,308 |
Right-of-use assets | $ | 1,089 |
| $ | 1,227 |
Weighted average remaining lease term in years |
| 9.0 |
|
| 9.7 |
Weighted average discount rate |
| 3.50% |
|
| 3.51% |
The following table represents information about the Company’s finance leases:
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| December 31, | ||||
(Dollars in thousands) | 2025 |
| 2024 | ||
$ | 2,169 |
| $ | 2,620 | |
Right-of-use | $ | 1,831 |
| $ | 2,245 |
Weighted average remaining term in years |
| 6.1 |
|
| 6.7 |
Weighted average discount rate |
| 2.74% |
|
| 2.73% |
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| For the Year Ended December 31, | ||||
Lease cost (in thousands) | 2025 |
| 2024 | ||
Operating lease cost | $ | 182 |
| $ | 182 |
Finance lease cost: |
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Amortization of right-of-use assets |
| 414 |
|
| 414 |
Interest on lease liabilities |
| 65 |
|
| 76 |
Total lease cost | $ | 661 |
| $ | 672 |
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Cash paid for amounts included in measurement |
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of operating lease liabilities | $ | 169 |
| $ | 169 |
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|
Cash paid for amounts included in measurement |
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of finance lease liabilities | $ | 515 |
| $ | 478 |
Note 23 – Leases (continued)
A maturity analysis of operating and finance lease liabilities and reconciliation of the undiscounted cash flows to the total of lease liabilities is as follows:
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| Operating Lease |
|
| Finance Lease |
|
| Liabilities |
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| Liabilities |
|
| As of December 31, |
|
| As of December 31, |
Lease payments due (in thousands) |
| 2025 |
|
| 2025 |
December 31, 2026 | $ | 177 |
| $ | 516 |
December 31, 2027 |
| 187 |
|
| 517 |
December 31, 2028 |
| 142 |
|
| 517 |
December 31, 2029 |
| 127 |
|
| 325 |
December 31, 2030 |
| 128 |
|
| 51 |
Thereafter |
| 618 |
|
| 440 |
Total undiscounted cash flows | $ | 1,379 |
| $ | 2,366 |
Discount |
| (200) |
|
| (197) |
Lease Liabilities | $ | 1,179 |
| $ | 2,169 |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 27, 2026 | Showing above |
| 2024 | Mar 26, 2025 | |
| 2023 | Mar 27, 2024 | |
| 2022 | Mar 31, 2023 | |
| 2021 | Mar 29, 2022 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.