8-K
Bank Of The James Financial Group Inc (BOTJ)
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________________
FORM 8-K
_________________
Current Report
Pursuant to Section 13 or 15(d)
of The Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): February 4, 2026
_________________
BANK OF THE JAMES FINANCIAL GROUP, INC.
(Exact Name of Registrant as Specified in Its Charter)
_________________
| Virginia | 001-35402 | 20-0500300 |
|---|---|---|
| (State or other jurisdiction of<br><br>incorporation or organization) | (Commission File Number) | (IRS Employer Identification No.) |
| 828 Main Street, Lynchburg, VA | 24504 | |
| (Address of Principal Executive Offices) | (Zip code) | |
| Registrant’s telephone number, including area code | (434) 846-2000 |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| --- | --- |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| --- | --- |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| --- | --- |
Securities registered pursuant to Section 12(b) of the Act:
| Title of Each Class | Trading<br><br>Symbol(s) | Name of Each Exchange<br><br>on Which Registered |
|---|---|---|
| Common Stock, $2.14 par value | BOTJ | The NASDAQ Capital Market |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 - Results of Operations and Financial Condition
On Wednesday, February 4, 2026, Bank of the James Financial Group, Inc. (the “Company”) issued a press release announcing financial results for the three and twelve months ended December 31, 2025 (the “Press Release”). A copy of the Press Release is attached hereto as Exhibit 99.1.
Item 9.01 - Financial Statements and Exhibits
(a) Financial statements of businesses acquired – not applicable
(b) Pro forma financial information – not applicable
(c) Shell company transactions – not applicable
(d) Exhibits
| Exhibit No. | Exhibit Description |
|---|---|
| 99.1 | Bank of the James Financial Group, Inc. Press Release February 4, 2026 |
| 104 | The cover page from this Current Report on Form 8-K, formatted in Inline XBRL |
2
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Date: February 4, 2026 | BANK OF THE JAMES FINANCIAL GROUP, INC. |
|---|---|
| By /s/ Eric J. Sorenson, Jr.<br><br>Eric J. Sorenson, Jr.<br><br>Secretary-Treasurer |
3
Exhibit 991 - Earnings Release
Exhibit 99.1
Bank of the James Announces Fourth Quarter,
Full Year 2025 Financial Results
Bank of the James Reports 2025 Net Income of $9.02 Million; Record Annual Earnings; Improved Metrics
LYNCHBURG, VA, February 4, 2026 -- Bank of the James Financial Group, Inc. (the “Company”) (NASDAQ:BOTJ), the parent company of Bank of the James (the “Bank”), a full-service commercial and retail bank, and Pettyjohn, Wood & White, Inc. (“PWW”), an SEC-registered investment advisor, today announced unaudited results of operations for the three-and twelve-month periods ended December 31, 2025. The Bank serves Region 2000 (the greater Lynchburg metropolitan statistical area) and the Blacksburg, Buchanan, Charlottesville, Harrisonburg, Lexington, Nellysford, Roanoke, and Wytheville, Virginia markets.
Fourth Quarter and Full Year 2025 Highlights
| " | Record annual earnings of $9.02 million for the year ended December 31, 2025, an increase of $1.08 million, or 13.6%, from $7.94 million in 2024. Earnings per share increased to $1.99 from $1.75, representing a 13.6% improvement. | | --- | --- | | " | Fourth quarter net income was $2.72 million, compared to $1.62 million in the fourth quarter of 2024. Fourth quarter earnings per share were $0.60 compared to $0.36 in the fourth quarter of 2024. | | --- | --- | | " | Total assets increased to $1.04 billion at December 31, 2025, up $59.78 million, or 6.1%, from $979.24 million at December 31, 2024. | | --- | --- | | " | Loans, net of allowance for credit losses, increased to $661.36 million at December 31, 2025, up $24.81 million, or 3.9%, from $636.55 million at December 31, 2024. | | --- | --- | | " | Total deposits increased to $937.13 million at December 31, 2025, up $54.73 million, or 6.2%, from $882.40 million at December 31, 2024, driven by growth in core deposits. | | --- | --- | | " | Net interest income increased 11.1% to $8.54 million in the fourth quarter of 2025, up from $7.69 million a year earlier. For the full year 2025, net interest income increased 12.2% to $32.81 million from $29.24 million in 2024. | | --- | --- | | " | Net interest margin for the three months ended December 31, 2025, was 3.44% compared with 3.18% for the three months ended December 31, 2024. For the twelve months ended December 31, 2025, net interest margin was 3.39% compared to 3.11% for the twelve months ended December 31, 2024. | | --- | --- | | " | Interest expense decreased 12.1% in the fourth quarter of 2025 to $3.47 million from $3.95 million in the fourth quarter of 2024. For the full year, interest expense declined 10.1% to $13.85 million from $15.41 million, driven by lower deposit costs and the retirement of capital notes. | | --- | --- |
| " | Efficiency ratio (non-interest expense divided by the sum of net interest income and noninterest income) improved to 70.81% in the fourth quarter of 2025 from 82.62% in |
|---|
| the fourth quarter of 2024. For the full year, the efficiency ratio improved to 77.17% from 79.11% for the prior year, as revenue growth of 9.7% outpaced expense growth of 7.0%. |
|---|
| " | Wealth management fees from PWW increased 10.4% to $5.35 million in 2025 from $4.84 million in 2024, contributing approximately $0.38 per share to earnings. |
| --- | --- | | " | Stockholders’ equity increased to $80.05 million at December 31, 2025 from $64.87 million at December 31, 2024, an increase of 23.4%. Book value per share rose to $17.62 from $14.28. | | --- | --- | | " | Pre-tax, pre-provision income increased to $3.76 million in the fourth quarter of 2025, compared to $2.00 million in the fourth quarter of 2024. For full year 2025, pre-tax, pre-provision income was $11.1 million, compared to $9.27 million for 2024, an increase of 19.9%. | | --- | --- | Fourth Quarter, Full Year 2025 Operational Review
Robert R. Chapman III, CEO of the Bank, commented: “We had record annual earnings of $9.02 million in 2025, up 13.6% from 2024. Margin improved as we managed deposit pricing and loan yields, and interest expense declined after we retired approximately $10.05 million in capital notes earlier in the year. Fourth-quarter noninterest expense also declined as we reduced data processing costs and professional fees. We will carry that same focus on pricing, costs, and credit into 2026.”
Mike Syrek, President of the Bank added: “On the expense side, vendor renegotiations and lower professional fees reduced fourth-quarter noninterest expense, and we expect those savings to continue into 2026. Our efficiency ratio improved dramatically throughout the year, reflecting the progress we’ve made on the expense side. Continuing to improve efficiency remains a key focus in 2026.”
Net interest income, for the fourth quarter of 2025 was $8.54 million, up 11.1% from $7.69 million in the fourth quarter of 2024. For the full year 2025, net interest income grew $3.57 million, or 12.2%, to $32.81 million from $29.24 million in 2024.
Total interest income was $12.01 million in the fourth quarter of 2025 compared with $11.64 million a year earlier. For the full year 2025, total interest income rose to $46.66 million from $44.64 million in 2024. Quarter-to-date and year-to-date growth was driven largely by higher rates on variable-rate commercial loans and the origination of new loans at current market rates.
Total interest expense in the fourth quarter of 2025 declined 12.1% to $3.47 million compared with $3.95 million in the fourth quarter of 2024. For the full year 2025, total interest expense declined to $13.85 million from $15.41 million in the prior year. Lower interest expense in both periods primarily reflected the moderately easing rate environment, the Bank’s active management of deposit pricing, and the retirement of approximately $10.05 million in capital notes at the end of the second quarter of 2025.
Net interest margin and interest spread improved during the past year as loan yields remained aligned with the interest rate environment and the Bank controlled deposit costs and borrowings.
Net interest margin of 3.44% in the fourth quarter of 2025 increased from both the second and third quarters of 2025.
Noninterest income in the fourth quarter of 2025 was $4.33 million compared with $3.82 million in the fourth quarter of 2024, an increase of 13.3%. Noninterest income for the full year 2025 was $15.85 million compared with $15.14 million in 2024, an increase of 4.7%. Most noninterest income in both periods came from gains on sale of loans held for sale by our mortgage division, wealth management fees generated by PWW, and service charges, fees and commissions from commercial treasury services and debit card activity. Growth in management fees generated by PWW resulted from an increase in assets under management.
Noninterest expense in the fourth quarter of 2025 was $9.11 million compared with $9.50 million a year earlier, a decrease of 4.2%. The improvement reflects reduced data processing costs from successful vendor negotiations and lower professional fees.
For the full year 2025, noninterest expense was $37.55 million compared with $35.11 million in 2024. The year-over-year increase was primarily due to increased salaries and employee benefits, including the addition of revenue-generating employees and new banking facilities in strategic locations, partially offset by reductions in data processing.
Balance Sheet: Asset Growth
Total assets were $1.04 billion at December 31, 2025 compared with $979.24 million at December 31, 2024. The increase was due primarily to growth in loans and securities available-for-sale.
Syrek commented: “We finished 2025 with over $1 billion in assets, supported by loan and deposit growth. Net loans increased 3.9% year over year, and the allowance for credit losses ended the year at $6.45 million. We were able to grow loans without compromising our credit standards.”
Loans, net of allowance for credit losses, were $661.36 million at December 31, 2025 compared with $636.55 million at December 31, 2024, an increase of $24.81 million, or 3.9%. The allowance for credit losses was $6.45 million at December 31, 2025 and $7.04 million at December 31, 2024.
Total deposits were $937.13 million at December 31, 2025 compared with $882.40 million at December 31, 2024, an increase of $54.73 million, or 6.2%. Core deposits (noninterest bearing demand deposits, NOW, money market and savings) were $701.80 million compared with $651.90 million at December 31, 2024, an increase of $49.90 million, or 7.7%, driven by growth in lower-cost core deposits.
Stockholders’ equity rose to $80.05 million at December 31, 2025 from $64.87 million at December 31, 2024, an increase of 23.4%. Retained earnings increased to $50.01 million at December 31, 2025 from $42.80 million at December 31, 2024. Book value per share rose to $17.62 at December 31, 2025 from $14.28 at December 31, 2024, reflecting both retained earnings growth and improved valuations in the Company’s available-for-sale investment portfolio as market interest rates declined.
About the Company
Bank of the James, a wholly-owned subsidiary of Bank of the James Financial Group, Inc. opened for business in July 1999 and is headquartered in Lynchburg, Virginia. The Bank currently services customers in Virginia from offices located in Altavista, Amherst, Appomattox, Bedford, Blacksburg, Buchanan, Charlottesville, Forest, Harrisonburg, Lexington, Lynchburg, Madison Heights, Nellysford, Roanoke, Rustburg, and Wytheville. The Bank offers full investment and insurance services through its BOTJ Investment Services division and BOTJ Insurance, Inc. subsidiary. The Bank provides mortgage loan origination through Bank of the James Mortgage, a division of Bank of the James. The Company provides investment advisory services through its wholly-owned subsidiary, Pettyjohn, Wood & White, Inc., an SEC-registered investment advisor. Bank of the James Financial Group, Inc. common stock is listed under the symbol “BOTJ” on the NASDAQ Stock Market, LLC. Additional information on the Company is available at: www.bankofthejames.bank.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains statements that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. The words “believe,” “estimate,” “expect,” “intend,” “anticipate,” “plan” and similar expressions and variations thereof identify certain of such forward-looking statements which speak only as of the date on which they were made. Bank of the James Financial Group, Inc. (the “Company”) undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those indicated in the forward-looking statements as a result of various factors. Such factors include, but are not limited to, competition, general economic conditions, potential changes in interest rates, changes in the value of real estate securing loans made by the Bank, as well as geopolitical conditions. Additional information concerning factors that could cause actual results to materially differ from those in the forward-looking statements is contained in the Company’s filings with the Securities and Exchange Commission.
CONTACT: Eric J. Sorenson, Jr., Executive Vice President and Chief Financial Officer of the Bank, (434) 846-2000.
FINANCIAL RESULTS FOLLOW
Bank of the James Financial Group, Inc. and Subsidiaries
Consolidated Balance Sheets
(dollar amounts in thousands, except per share amounts)
| | |
|---|---|
| Assets | 12/31/2024 |
| | |
| Cash and due from banks | $23,287 |
| Federal funds sold | 50,022 |
| Total cash and cash equivalents | 73,309 |
| | |
| Securities held-to-maturity, at amortized cost (fair value of 3,315 as of December 31, 2025 and 3,170 as of December 31, 2024) net of allowance for credit losses of 0 as of December 31, 2025 and December 31, 2024 | 3,606 |
| Securities available-for-sale, at fair value | 187,916 |
| Restricted stock, at cost | 1,821 |
| Loans, net of allowance for credit losses of 6,450 as of December 31, 2025 and 7,044 as of December 31, 2024 | 636,552 |
| Loans held for sale | 3,616 |
| Premises and equipment, net | 19,313 |
| Interest receivable | 3,065 |
| Cash value - bank owned life insurance | 22,907 |
| Customer relationship intangible | 6,725 |
| Goodwill | 2,054 |
| Other assets | 18,360 |
| Total assets | $979,244 |
| | |
| Liabilities and Stockholders’ Equity | |
| | |
| Deposits | |
| Noninterest bearing demand | $129,692 |
| NOW, money market and savings | 522,208 |
| Time | 230,504 |
| Total deposits | 882,404 |
| | |
| Capital notes, net | 10,048 |
| Other borrowings | 9,300 |
| Interest payable | 722 |
| Other liabilities | 11,905 |
| Total liabilities | $914,379 |
| | |
| Stockholders’ equity | |
| Common stock 2.14 par value; authorized 10,000,000 shares; issued and outstanding |
All values are in US Dollars.
| 4,543,338 as of December 31, 2025 and December 31, 2024 | $9,723 | $9,723 |
|---|---|---|
| Additional paid-in-capital | 35,253 | 35,253 |
| Retained earnings | 50,009 | 42,804 |
| Accumulated other comprehensive loss | (14,937) | (22,915) |
| Total stockholders’ equity | $80,048 | $64,865 |
| | ||
| Total liabilities and stockholders’ equity | $1,039,024 | $979,244 |
Bank of the James Financial Group, Inc. and Subsidiaries
Consolidated Statements of Income
(dollar amounts in thousands, except per share amounts)
(unaudited)
| | For the Three Months | For the Twelve Months | ||
|---|---|---|---|---|
| | Ended December 31, | Ended December 31, | ||
| Interest Income | 2025 | 2024 | 2025 | 2024 |
| Loans | $9,515 | $9,130 | $37,254 | $34,505 |
| Securities | ||||
| US Government and agency obligations | 579 | 403 | 2,121 | 1,471 |
| Mortgage backed securities | 395 | 407 | 1,545 | 2,381 |
| Municipals - taxable | 397 | 299 | 1,393 | 1,171 |
| Municipals - tax exempt | 53 | 18 | 135 | 73 |
| Dividends | 35 | 36 | 98 | 95 |
| Corporates | 123 | 136 | 530 | 543 |
| Interest bearing deposits | 159 | 147 | 559 | 775 |
| Federal Funds sold | 756 | 1,060 | 3,020 | 3,629 |
| Total interest income | 12,012 | 11,636 | 46,655 | 44,643 |
| | ||||
| | ||||
| Interest Expense | ||||
| Deposits | ||||
| NOW, money market savings | 1,170 | 1,310 | 4,949 | 5,455 |
| Time Deposits | 2,144 | 2,442 | 8,282 | 9,173 |
| Finance leases | 15 | 18 | 65 | 76 |
| Other borrowings | 145 | 98 | 389 | 376 |
| Capital notes | - | 82 | 163 | 327 |
| Total interest expense | 3,474 | 3,950 | 13,848 | 15,407 |
| | ||||
| Net interest income | 8,538 | 7,686 | 32,807 | 29,236 |
| | ||||
| Provision for (recovery of) credit losses | 266 | (71) | (35) | (655) |
| | ||||
| Net interest income after provision for (recovery of) credit losses | 8,272 | 7,757 | 32,842 | 29,891 |
| | ||||
| | ||||
| Noninterest income | ||||
| Gains on sale of loans held for sale | 1,185 | 968 | 4,853 | 4,494 |
| Service charges, fees and commissions | 1,271 | 1,073 | 4,273 | 4,003 |
| Wealth management fees | 1,430 | 1,260 | 5,347 | 4,843 |
| Life insurance income | 197 | 190 | 770 | 721 |
|---|---|---|---|---|
| Income from SBIC fund | 228 | 334 | 506 | 934 |
| Other | 14 | 11 | 76 | 80 |
| Gain on sales of available-for-sale securities | - | (20) | 27 | 62 |
| Total noninterest income | 4,325 | 3,816 | 15,852 | 15,137 |
| | ||||
| Noninterest expenses | ||||
| Salaries and employee benefits | 5,310 | 5,038 | 20,960 | 19,294 |
| Occupancy | 546 | 471 | 2,136 | 1,964 |
| Equipment | 744 | 620 | 2,765 | 2,499 |
| Supplies | 168 | 145 | 631 | 542 |
| Professional and other outside expense | 773 | 1,226 | 3,967 | 3,351 |
| Data processing | 503 | 825 | 2,487 | 3,177 |
| Marketing | 183 | 287 | 867 | 768 |
| Credit expense | 239 | 204 | 904 | 816 |
| FDIC insurance expense | 124 | 112 | 518 | 441 |
| Amortization of intangibles | 140 | 140 | 560 | 560 |
| Other | 378 | 435 | 1,754 | 1,693 |
| Total noninterest expenses | 9,108 | 9,503 | 37,549 | 35,105 |
| | ||||
| Income before income taxes | 3,489 | 2,070 | 11,145 | 9,923 |
| | ||||
| Income tax expense | 766 | 452 | 2,123 | 1,979 |
| | ||||
| Net Income | $2,723 | $1,618 | $9,022 | $7,944 |
| | ||||
| Weighted average shares outstanding - basic and diluted | 4,543,338 | 4,543,338 | 4,543,338 | 4,543,338 |
| | ||||
| Net income per common share - basic and diluted | $0.60 | $0.36 | $1.99 | $1.75 |
Bank of the James Financial Group, Inc. and Subsidiaries
Dollar amounts in thousands, except per share data
Unaudited | Selected Data: | Three<br> <br>months<br> <br>ending<br> <br>Dec 31,<br> <br>2025 | Three<br> <br>months<br> <br>ending<br> <br>Dec 31,<br> <br>2024 | Change | Year<br> <br>to<br> <br>date<br> <br>Dec 31,<br> <br>2025 | Year<br> <br>to<br> <br>date<br> <br>Dec 31,<br> <br>2024 | Change | | --- | --- | --- | --- | --- | --- | --- | | Interest income | $12,012 | $11,636 | 3.23% | $46,655 | $44,643 | 4.51% | | Interest expense | 3,474 | 3,950 | -12.05% | 13,848 | 15,407 | -10.12% | | Net interest income | 8,538 | 7,686 | 11.09% | 32,807 | 29,236 | 12.21% | | Provision for (recovery of) credit losses | 266 | (71) | -474.65% | (35) | (655) | -94.66% | | Noninterest income | 4,325 | 3,816 | 13.34% | 15,852 | 15,137 | 4.72% | | Noninterest expense | 9,108 | 9,503 | -4.16% | 37,549 | 35,105 | 6.96% | | Income taxes | 766 | 452 | 69.47% | 2,123 | 1,979 | 7.28% | | Net income | $2,723 | $1,618 | 68.29% | $9,022 | $7,944 | 13.58% | | Weighted average shares outstanding - basic and diluted | 4,543,338 | 4,543,338 | - | 4,543,338 | 4,543,338 | - | | Net income per share – basic and diluted | $0.60 | $0.36 | $0.24 | $1.99 | $1.75 | $0.24 | | Balance Sheet at<br> <br>period end: | Dec 31,<br> <br>2025 | Dec 31,<br> <br>2024 | Change | Dec 31,<br> <br>2024 | Dec 31,<br> <br>2023 | Change | | --- | --- | --- | --- | --- | --- | --- | | Loans, net | $661,357 | $636,552 | 3.90% | $636,552 | $601,921 | 5.75% | | Loans held for sale | 3,472 | 3,616 | -3.98% | 3,616 | 1,258 | 187.44% | | Total debt securities | 217,718 | 191,522 | 13.68% | 191,522 | 220,132 | -13.00% | | Total deposits | 937,129 | 882,404 | 6.20% | 882,404 | 878,459 | 0.45% | | Stockholders’ equity | 80,048 | 64,865 | 23.41% | 64,865 | 60,039 | 8.04% | | Total assets | 1,039,024 | 979,244 | 6.10% | 979,244 | 969,371 | 1.02% | | Shares outstanding | 4,543,338 | 4,543,338 | - | 4,543,338 | 4,543,338 | - | | Book value per share | $17.62 | $14.28 | $3.34 | $14.28 | $13.21 | $1.07 | | Daily averages: | Three<br> <br>months<br> <br>ending<br> <br>Dec 31,<br> <br>2025 | Three<br> <br>months<br> <br>ending<br> <br>Dec 31,<br> <br>2024 | Change | Year<br> <br>to<br> <br>date<br> <br>Dec 31,<br> <br>2025 | Year<br> <br>to<br> <br>date<br> <br>Dec 31,<br> <br>2024 | Change | | --- | --- | --- | --- | --- | --- | --- | | Loans | $661,581 | $642,197 | 3.02% | $654,835 | $623,769 | 4.98% | | Loans held for sale | 4,011 | 3,612 | 11.05% | 3,271 | 3,494 | -6.38% | | Total securities (book value) | 230,940 | 218,680 | 5.61% | 225,002 | 232,992 | -3.43% | | Total deposits | 942,040 | 920,655 | 2.32% | 921,488 | 901,449 | 2.22% | | Stockholders’ equity | 77,770 | 68,563 | 13.43% | 71,133 | 62,575 | 13.68% | | Interest earning assets | 988,760 | 963,512 | 2.62% | 969,433 | 939,900 | 3.14% | | Interest bearing liabilities | 815,834 | 801,812 | 1.75% | 801,692 | 783,003 | 2.39% | | Total assets | 1,043,521 | 1,021,547 | 2.15% | 1,020,156 | 995,738 | 2.45% |
| Financial Ratios: | Three<br> <br>months<br> <br>ending<br> <br>Dec 31,<br> <br>2025 | Three<br> <br>months<br> <br>ending<br> <br>Dec 31,<br> <br>2024 | Change | Year<br> <br>to<br> <br>date<br> <br>Dec 31,<br> <br>2025 | Year<br> <br>to<br> <br>date<br> <br>Dec 31,<br> <br>2024 | Change |
| --- | --- | --- | --- | --- | --- | --- | | Return on average assets | 1.04% | 0.63% | 0.41 | 0.88% | 0.80% | 0.08 | | Return on average equity | 13.89% | 9.39% | 4.50 | 12.68% | 12.70% | (0.02) | | Net interest margin | 3.44% | 3.18% | 0.26 | 3.39% | 3.11% | 0.26 | | Efficiency ratio | 70.81% | 82.62% | (11.81) | 77.17% | 79.11% | (1.94) | | Average equity to average assets | 7.45% | 6.71% | 0.74 | 6.97% | 6.28% | 0.69 | | Allowance for credit losses: | Three<br> <br>months<br> <br>ending<br> <br>Dec 31,<br> <br>2025 | Three<br> <br>months<br> <br>ending<br> <br>Dec 31,<br> <br>2024 | Change | Year<br> <br>to<br> <br>date<br> <br>Dec 31,<br> <br>2025 | Year<br> <br>to<br> <br>date<br> <br>Dec 31,<br> <br>2024 | Change | | --- | --- | --- | --- | --- | --- | --- | | Beginning balance | $6,298 | $7,078 | -11.02% | $7,044 | $7,412 | -4.96% | | Provision for (recovery of) credit losses* | 352 | (39) | -1002.56% | (166) | (533) | -68.86% | | Charge-offs | (203) | - | N/A | (447) | (84) | 432.14% | | Recoveries | 3 | 5 | -40.00% | 19 | 249 | -92.37% | | Ending balance | 6,450 | 7,044 | -8.43% | 6,450 | 7,044 | -8.43% | | * does not include provision for or recovery of unfunded loan commitment liability | | | | | | | | Nonperforming assets: | Dec 31,<br> <br>2025 | Dec 31,<br> <br>2024 | Change | Dec 31,<br> <br>2024 | Dec 31,<br> <br>2023 | Change | | --- | --- | --- | --- | --- | --- | --- | | Total nonperforming loans | $1,704 | $1,640 | 3.90% | $1,640 | $391 | 319.44% | | Other real estate owned | - | - | N/A | - | - | N/A | | Total nonperforming assets | 1,704 | 1,640 | 3.90% | 1,640 | 391 | 319.44% | | Asset quality ratios: | Dec 31,<br> <br>2025 | Dec 31,<br> <br>2024 | Change | Dec 31,<br> <br>2024 | Dec 31,<br> <br>2023 | Change | | --- | --- | --- | --- | --- | --- | --- | | Nonperforming loans to total loans | 0.26% | 0.25% | 0.01 | 0.25% | 0.06% | 0.19 | | Allowance for credit losses for loans to total loans | 0.97% | 1.09% | (0.12) | 1.09% | 1.22% | (0.13) | | Allowance for credit losses for loans to nonperforming loans | 378.52% | 429.51% | (50.99) | 429.51% | 1895.65% | (1,466.14) |