Bakkagerði, (pop. 100) a village in Borgarfjörður, and a trading post since 1894. Now fishing, fish processing, trade and farming. A church with a fine altar piece painted by Jóhannes S. Kjarval (1885–1972), who grew up in Borgarfjörður. It shows Christ giving the Sermon on the Mount, standing on Álfaborg with the Dyrfjöll mountains behind him.