Bank of the James Announces Closing of Equity Raise

Bank of the James Financial Group, Inc. BOTJ (the "Company"), the parent company of Bank of the James, a full-service commercial and retail bank serving Lynchburg, Charlottesville, Harrisonburg, Roanoke and other markets in Virginia, announced today that it closed the previously announced private placement sale of 1,000,000 shares of common stock to certain institutional investors at a price of $11.52 per share. The gross proceeds to the Company from the private placement are $11,520,000. As previously reported, the Company intends to use $10,000,000 to prepay in full notes issued in the second quarter of 2012 (the "2012 Notes"), and the remaining proceeds from the private placement will be retained by the Company to pay related transaction fees and expenses and for general corporate purposes. The 2012 Notes bear interest at 6% per year with quarterly payments of interest only. The 2012 Notes mature on April 1, 2017 but can be prepaid in whole or in part on 30 days' written notice to the noteholders. The Company intends to provide holders of the 2012 Notes notice on December 4, 2015 of the Company's intent to prepay the 2012 Notes in full on January 5, 2016. The prepayment of the 2012 Notes will reduce the Company's interest expense by $150,000 per quarter through the time the 2012 Notes were scheduled to mature. In addition, by replacing the Company's debt with equity, the prepayment of the 2012 Notes will increase the Company's consolidated capital ratios. Raymond James served as sole placement agent for this private placement of common equity.