Bank of the James Financial (BOTJ) 8-K Bank of the James Financial Group, Inc. announces results for 1st Quarter 2004

Exhibit 99.1

Bank of the James Financial Group, Inc. announces results for 1^st Quarter 2004

Lynchburg Va., April 20, 2004.

Bank of the James Financial Group, Inc. (OTCBB:BOJF) (quarterly consolidated results unaudited) reported today total net income after tax of $341,000 or $0.34 per basic share for the quarter ending March 31, 2004 compared to net income of $305,000 or $0.33 per basic share for the same period a year ago. Earnings per share amounts for 2004 reflect the 10% stock dividend paid by the company during January, 2004. Return on average assets and return on average equity for the quarter ended March 31, 2004 were 0.93% and 11.89% respectively.

Net interest income for the quarter ended March 31, 2004 was $1,575,000 as compared to net interest income of $1,232,000 in the same quarter of 2003, an increase of 27.8%. The increase in net interest income is attributable to an increase in average interest earning assets from $106,369,000 in the first quarter 2003 to $139,569,000 or 31.2% for the same period in 2004. Interest earning assets are composed primarily of loans and investments. Despite similar growth in average interest bearing liabilities from $88,760,000 in the first quarter 2003 to $120,597,000 or 35.9% in the first quarter 2004, overall net interest expense decreased as the result of an effort to lower the concentration in certificates of deposit and reallocate the funds to low cost savings accounts.

The net interest margin decreased slightly to 4.53% in the first quarter of 2004 from 4.65% in the same period a year ago. The average rate on earning assets decreased 81 basis points from 7.01% in the first quarter of 2003 to 6.20% in the first quarter of 2004 and the average rate on interest-bearing liabilities decreased 69 basis points from 2.42% in the first quarter of 2003 to 1.73% in the first quarter of 2004.

Total assets as of March 31, 2004 were $158,505,000 compared to $145,011,000 at the end of 2003, an increase of $13,494,000 or 9.3%. The increase is attributable to deposit growth from $133,485,000 for the period ended December 31, 2003 to $143,858,000 at the end of the first quarter, 2004, for an increase of 7.8%

Loans, net of unearned income and loan loss provision, increased from $114,603,000 as of December 31, 2003 to $118,974,000 as of March 31, 2004, an increase of 3.8%. The loan loss provision of $1,507,000 represented 1.25% of total loans at the end of the first quarter, 2004. Management deems this provision to be adequate.

Bank of the James, the sole subsidiary of Bank of the James Financial Group, Inc., currently operates four full service locations as well as a mortgage division in the Lynchburg, Virginia area. Bank of the James Financial Group, Inc. common stock is quoted on the Over The Counter Bulletin Board under the symbol “BOJF” (some web sites require BOJF.OB to quote).

# # #

Cautionary Statement Regarding Forward-Looking Statements

This press release report 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 dates 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, and changes in the value of real estate securing loans made by the Bank. Additional information is contained in the Company’s filings with the Securities and Exchange Commission and previously filed by Bank of the James (predecessor of the Company) with the Federal Reserve Board concerning factors that could cause actual results to materially differ from those in the forward-looking statements.

# # #

Bank of the James Financial Group, Inc.

(000’s) except ratios and percent data

audited

Selected Data:	Three months ending Mar 31, 2004		Three months ending Mar 31, 2003		Change			Year to date Mar 31, 2004		Year to date Mar 31, 2003		Change
Interest income	$	2,159	$	1,839		17.40	%	$	2,159	$	1,839		17.40	%
Interest expense		584		607		-3.79	%		584		607		-3.79	%
Net Interest income		1,575		1,232		27.84	%		1,575		1,232		27.84	%
Provision for loan losses		77		208		-62.98	%		77		208		-62.98	%
Noninterest income		290		385		-24.68	%		290		385		-24.68	%
Noninterest expense		1,268		937		35.33	%		1,268		937		35.33	%
Income taxes		179		167		7.19	%		179		167		7.19	%
Net income		341		305		11.80	%		341		305		11.80	%
Weighted Average Shares Outstanding		1,002,514		935,630		7.15	%		1,002,514		935,630		7.15	%
Basic net income per share *	$	0.34	$	0.33	$	0.01		$	0.34	$	0.33	$	0.01
Fully diluted net income per share	$	0.31	$	0.32	$	(0.01	)	$	0.31	$	0.32	$	(0.01	)
Balance Sheet at period end:	Mar 31, 2004		Dec 31, 2003		Change			Mar 31, 2003		Dec 31, 2002		Change
Loans, net	$	118,974	$	114,603		3.81	%	$	95,110	$	85,750		10.92	%
Total securities		16,547		14,956		10.64	%		11,781		16,478		-28.50	%
Total deposits		143,858		133,485		7.77	%		105,901		103,509		2.31	%
Stockholders’ equity		11,711		11,309		3.55	%		10,244		9,973		2.72	%
Total assets		158,505		145,011		9.31	%		118,560		114,071		3.94	%
Shares Outstanding		1,029,267		935,630		93,637			935,630		935,630		—
Book value per share		11.38		12.09		(0.71	)		10.95		10.66	$	0.29
Daily averages:	Three months ending Mar 31, 2004		Three months ending Mar 31, 2003		Change			Year to date Mar 31, 2004		Year to date Mar 31, 2003		Change
Loans, net	$	116,459	$	90,452		28.75	%	$	116,459	$	90,452		28.75	%
Total securities		14,423		13,425		7.43	%		14,423		13,425		7.43	%
Total deposits		135,080		99,980		35.11	%		135,080		99,980		35.11	%
Stockholders’ equity		11,504		10,221		12.55	%		11,504		10,221		12.55	%
Interest earning assets		139,569		106,369		31.21	%		139,569		106,369		31.21	%
Interest bearing liabilities		120,597		88,760		35.87	%		120,597		88,760		35.87	%
Total Assets		147,508		112,485		31.14	%		147,508		112,485		31.14	%

Financial Ratios:	Three months ending Mar 31, 2004			Three months ending Mar 31, 2003			Change		Year to date Mar 31, 2004			Year to date Mar 31, 2003			Change
Return on average assets		0.93	%		1.09	%	(0.16	)		0.93	%		1.09	%	(0.16	)
Return on average equity		11.89	%		11.97	%	(0.08	)		11.89	%		11.97	%	(0.08	)
Net Interest Margin		4.53	%		4.65	%	(0.12	)		4.53	%		4.65	%	(0.12	)
Efficiency ratio		67.99	%		57.95	%	10.04			67.99	%		57.95	%	10.04
Average Equity to average assets		7.80	%		9.09	%	(1.29	)		7.80	%		9.09	%	(1.29	)
Allowance for loan losses:	Three months ending Mar 31, 2004			Three months ending Mar 31, 2003			Change		Year to date Mar 31, 2004			Year to date Mar 31, 2003			Change
Beginning balance	$	1,451		$	1,081		34.23	%	$	1,451		$	1,081		34.23	%
Provision for losses		77			208		-62.98	%		77			208		-62.98	%
Charge-offs		(63	)		(91	)	-30.77	%		(63	)		(91	)	-30.77	%
Recoveries		42			10		320.00	%		42			10		320.00	%
Ending balance		1,507			1,208		24.75	%		1,507			1,208		24.75	%
Nonperforming assets:	Mar 31, 2004			Dec 31, 2003			Change		Mar 31, 2003			Dec 31, 2002			Change
Nonaccrual loans		38			85		-55.29	%		22			42		-47.62	%
Restructured loans		none			none		—			none			none		—
Total nonperforming loans		38			85		-55.29	%		22			42		-47.62	%
Other real estate owned		none			none		—			none			none		—
Total nonperforming assets		38			85		-55.29	%		22			42		-47.62	%
Asset quality ratios:	Mar 31, 2004			Dec 31, 2003			Change		Mar 31, 2003			Dec 31, 2002			Change
Nonperforming loans to total loans		0.03	%		0.07	%	(0.04	)		0.02	%		0.05	%	(0.03	)
Allowance for loan losses to total loans		1.25	%		1.25	%	0.00			1.25	%		1.24	%	0.01
Allowance for loan losses to nonperforming loans		3965.79	%		1707.06	%	2,258.73			5490.91	%		2573.81	%	2,917.10

* Basic EPS is calculated using the average shares outstanding for the period. Average shares outstanding

increased in the 1st qtr 2004 due to the effects of the 10% stock dividend paid on 1/27/04.