BANK OF THE JAMES FINANCIAL GROUP INC Segments Disclosure
Segment Overview
The Company has three reportable business segments:
1.Community Banking – This segment operates through Bank of the James, providing traditional banking services including loans, deposits, investments, and insurance to retail and commercial customers throughout Region 2000 and other Central Virginia areas. The primary revenue source is net interest income from lending and deposit-taking activities.
2.Mortgage Banking – The mortgage segment originates residential mortgage loans primarily within the Region 2000, Charlottesville, and Roanoke markets. The mortgage division primarily sells these loans in the secondary market through pre-arranged purchase commitments, typically with servicing released. This structure substantially limits the Company’s exposure to credit and interest rate risk. Revenue primarily consists of gains on the sale of loans.
3.Investment Advisory (Wealth Management) – This segment provides investment advisory and financial planning services through Pettyjohn, Wood & White, Inc., a wholly-owned subsidiary. Revenue is fee-based, derived from client advisory fees related to assets under management (AUM).
The segments are integrated through cross-referral activities, with the Community Banking segment providing customer referrals to the Mortgage Banking and Investment Advisory segments, and vice versa when appropriate.
Chief Operating Decision Maker (CODM) and Segment Performance
The Company’s Chief Operating Decision Maker (CODM) is Robert R. Chapman III, President of Financial. The CODM evaluates performance and allocates resources based on segment profit, defined as income before income taxes. This profit measure was selected because it closely aligns with the measures reported in the Company’s consolidated financial statements under GAAP. Segment assets represent those assets directly attributed to each segment or allocated based on actual usage. Income taxes are allocated proportionately based on each segment’s pre-tax income. Segment accounting
Note 9 – Business Segments (continued)
policies are consistent with the significant accounting policies outlined in these consolidated financial statements, and there were no changes in segmentation or profit measurement methods during the year.
Significant Expense Categories
Consistent with ASU 2023-07, significant segment expenses reviewed regularly by the CODM and included in segment profit measures are separately presented. For the year ended December 31, 2025, these significant approximate expenses included:
Community Banking: Salaries and employee benefits ($15.95 million), data processing ($2.49 million), professional services ($3.79 million), equipment ($2.65 million), and occupancy ($2.01 million).
Mortgage Banking: Salaries and employee benefits ($3.23 million), credit-related expenses ($682,000), and occupancy costs ($117,000).
Investment Advisory: Salaries and employee benefits ($1.78 million), amortization of intangible assets ($561,000), and professional services ($123,000).
The “Other” segment represents the parent holding company, Bank of the James Financial Group, Inc. Significant items include interest expense on holding company borrowings and intercompany dividend income received from subsidiaries, which is eliminated against the subsidiaries’ equity in the Eliminations column. Remaining holding company operating expenses, primarily professional fees, are not allocated to a reportable segment.
Supplemental Segment Data
Supplemental data regularly reviewed by the CODM includes total loans held for investment, total deposits, and assets under management (AUM), as these metrics provide additional insights into segment performance:
Community Banking: Total loans held for investment, net of allowances, were $661.36 million at December 31, 2025, compared to $636.55 million at December 31, 2024. Deposits totaled $940.60 million and $889.52 million for 2025 and 2024, respectively.
Investment Advisory: AUM increased to $1.03 billion million at December 31, 2025, from $853.98 million at December 31, 2024.
Note 9 – Business Segments (continued)
Segment financial information, including significant expense categories and supplemental metrics, is presented in the tables below, along with reconciliations to consolidated financial statements for the years ended December 31, 2025, and 2024.
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| Business Segments as of the Year Ended | |||||
| December 31, 2025 | |||||
Dollars in Thousands | Community Banking | Mortgage Banking | Investment Advisory | Other | Eliminations | Consolidated |
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Interest income | $ 46,655 | $ - | $ - | $ - | $ - | $ 46,655 |
Interest expense | 13,296 | - | - | 552 | - | 13,848 |
Net interest income | 33,359 | - | - | (552) | - | 32,807 |
Gains on sales of loans | - | 4,853 | - | - | - | 4,853 |
Service charges, fees and commissions | 4,273 | - | - | - | - | 4,273 |
Wealth management fees | 19 | - | 5,328 | - | - | 5,347 |
Other noninterest income | 1,647 | - | - | 9,628 | (9,896) | 1,379 |
Net revenue | 39,298 | 4,853 | 5,328 | 9,076 | (9,896) | 48,659 |
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Less: |
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Provision for (recovery of) credit losses | (35) | - | - | - | - | (35) |
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Noninterest expense: |
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Salaries and employee benefits | 15,947 | 3,229 | 1,784 | - | - | 20,960 |
Occupancy | 2,009 | 117 | 130 | - | (120) | 2,136 |
Equipment | 2,652 | 60 | 53 | - | - | 2,765 |
Supplies | 575 | 21 | 35 | - | - | 631 |
Professional and other outside expenses | 3,785 | - | 123 | 207 | (148) | 3,967 |
Data processing | 2,487 | - | - | - | - | 2,487 |
Marketing | 799 | 5 | 13 | 50 | - | 867 |
Credit expense | 222 | 682 | - | - | - | 904 |
Other real estate expenses, net | - | - | - | - | - | - |
FDIC insurance expense | 518 | - | - | - | - | 518 |
Amortization of intangibles | - | - | 561 | - | - | 561 |
Other (insurance, travel, contributions) | 1,586 | 40 | 127 | - | - | 1,753 |
Total noninterest expense | 30,580 | 4,154 | 2,826 | 257 | (268) | 37,549 |
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Segment income before income taxes | 8,753 | 699 | 2,502 | 8,819 | (9,628) | 11,145 |
Allocated income tax expense (benefit) | 1,518 | 147 | 664 | (206) | - | 2,123 |
Segment net income | $ 7,235 | $ 552 | $ 1,838 | $ 9,025 | $ (9,628) | $ 9,022 |
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Segment assets at December 31, 2025 | $ 1,028,122 | $ 3,472 | $ 9,611 | $ 104,196 | $ (106,377) | $ 1,039,024 |
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Supplemental Data at December 31, 2025: |
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Total loans held for investment, net | $ 661,357 | $ - | $ - | $ - | $ - | $ 661,357 |
Total deposits | 940,596 | - | - | - | (3,467) | 937,129 |
Assets Under Management | - | - | 1,028,928 | - | - | 1,028,928 |
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Note 9 – Business Segments (continued)
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| Business Segments as of the Year Ended | |||||
| December 31, 2024 | |||||
Dollars in Thousands | Community Banking | Mortgage Banking | Investment Advisory | Other | Eliminations | Consolidated |
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Interest income | $ 44,643 | $ - | $ - | $ - | $ - | $ 44,643 |
Interest expense | 14,704 | - | - | 703 | - | 15,407 |
Net interest income | 29,939 | - | - | (703) | - | 29,236 |
Gains on sales of loans | - | 4,494 | - | - | - | 4,494 |
Service charges, fees and commissions | 4,003 | - | - | - | - | 4,003 |
Wealth management fees | - | - | 4,843 | - | - | 4,843 |
Other noninterest income | 2,050 | - | - | 8,579 | (8,832) | 1,797 |
Net revenue | 35,992 | 4,494 | 4,843 | 7,876 | (8,832) | 44,373 |
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Less: |
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Provision for (recovery of) credit losses | (655) | - | - | - | - | (655) |
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Noninterest expense: |
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Salaries and employee benefits | 14,681 | 2,876 | 1,737 | - | - | 19,294 |
Occupancy | 1,842 | 114 | 104 | - | (96) | 1,964 |
Equipment | 2,406 | 54 | 39 | - | - | 2,499 |
Supplies | 486 | 20 | 36 | - | - | 542 |
Professional and other outside expenses | 3,286 | - | 112 | 232 | (159) | 3,471 |
Data processing | 3,057 | - | - | - | - | 3,057 |
Marketing | 847 | 6 | 11 | (96) | - | 768 |
Credit expense | 237 | 579 | - | - | - | 816 |
Other real estate expenses, net | - | - | - | - | - | - |
FDIC insurance expense | 441 | - | - | - | - | 441 |
Amortization of intangibles | - | - | 560 | - | - | 560 |
Other (insurance, travel, contributions) | 1,569 | 18 | 115 | (9) | - | 1,693 |
Total noninterest expense | 28,852 | 3,667 | 2,714 | 127 | (255) | 35,105 |
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Segment income before income taxes | 7,795 | 827 | 2,129 | 7,749 | (8,577) | 9,923 |
Allocated income tax expense (benefit) | 1,449 | 153 | 572 | (195) | - | 1,979 |
Segment net income | $ 6,346 | $ 674 | $ 1,557 | $ 7,944 | $ (8,577) | $ 7,944 |
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Segment assets at December 31, 2024 | $ 965,659 | $ 3,992 | $ 11,308 | $ 107,365 | $ (109,080) | $ 979,244 |
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Supplemental Data at December 31, 2024: |
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Total loans held for investment, net | $ 636,552 | $ - | $ - | $ - | $ - | $ 636,552 |
Total deposits | 889,519 | - | - | - | (7,115) | 882,404 |
Assets Under Management | - | - | 853,977 | - | - | 853,977 |
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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 | |
| 2020 | Mar 29, 2021 | |
| 2019 | Mar 20, 2020 | |
| 2018 | Mar 22, 2019 | |
| 2017 | Mar 21, 2018 | |
| 2016 | Mar 21, 2017 | |
| 2015 | Mar 17, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.