Bank of the James Financial Group Inc Liquidation Value

Bank of the James Financial Group (BOTJ) is a Virginia-based community bank holding company with consolidated total assets of $1.04B at December 31, 2025, up from approximately $987M implied by the prior period's average balance data. Under a liquidation lens, recovery to equity is positive but compressed relative to book value due to the standard bank asset-liability asymmetry.

Asset-side recovery: Cash and cash equivalents of $84.5M recover at 100%. The available-for-sale securities portfolio carries amortized cost of $233.0M against a fair value of $214.1M, reflecting a pre-tax unrealized loss of $19.7M — at liquidation, AFS securities would recover at fair value, not amortized cost. The held-to-maturity portfolio has a carrying value of $3.6M against fair value of $3.3M. Net loans of $661.4M (gross $667.8M less $6.5M allowance) would face additional haircuts under forced liquidation assumptions beyond the existing reserve; applying a conservative 85-90% recovery on net loans yields $562-$595M. PP&E (net) is not separately tagged in the XBRL context at the consolidated level with sufficient granularity to isolate, but accumulated depreciation of $18.0M has been consumed. Goodwill of $2.1M and finite-lived intangibles of $6.2M ($8.3M combined) would be zeroed under liquidation. Bank-owned life insurance of $23.7M recovers at or near book. These asset haircuts reduce total recoverable value materially below the $1.04B balance sheet total.

Liability side at face: Total consolidated liabilities of $959.0M must be settled at face. Deposits of $937.1M (dominant) stay at face value. Finance lease obligations of $2.2M and operating lease commitments totaling $1.4M undiscounted remain obligations. AOCI was negative $14.9M at year-end 2025, improved from negative $22.9M at year-end 2024, driven by mark-to-market recovery on the AFS portfolio ($10.1M unrealized gain shift embedded in the comprehensive income of $17.0M for the year).

Net equity book value was $80.0M (consolidated) at December 31, 2025 versus $64.9M at December 31, 2024 (parent-only from Note 25; consolidated figure tracked separately). The improvement of approximately $15M reflects retained earnings growth ($7.2M net income add year-over-year) and AOCI recovery of approximately $8.0M net of tax. MFFAIS CLV/LLV/OLV are all cited at $81.1M, consistent with book equity. Under a liquidation scenario, the intangibles haircut ($8.3M), additional loan-loss haircut beyond ALLL, and below-par fair value of the AFS portfolio (additional $19.7M pre-tax, or roughly $15.6M post-tax at 21%) combine to reduce recoverable equity. A rough liquidation recovery estimate would be in the range of $50-65M versus the $80M book, depending on loan recovery assumptions. The capital notes ($10.0M at December 31, 2024) were fully repaid during 2025 per the cash flow statement ($10.05M repayment), eliminating that layer of holding-company debt, which improves the holding company's recovery posture. The parent-company only XBRL balance sheet confirms total parent liabilities dropped from $19.8M (2024) to $9.4M (2025) following capital note extinguishment. Filing discusses salary continuation agreements for multiple executives in MD&A/exhibit references but does not separately tag the associated liability in XBRL; these represent off-balance-sheet obligations not visible in the liquidation recovery calculation from tagged data alone.