Exhibit 99
[Logo Omitted
James Monroe Bancorp, Inc.
3033 Wilson Blvd.
Arlington, VA 22201
PRESS RELEASE
- --------------------------------------------------------------------------------
FOR IMMEDIATE RELEASE
JAMES MONROE BANCORP REPORTS FIRST QUARTER 2006 EARNINGS...
ARLINGTON, VA, (BUSINESS WIRE)--April 19, 2006.--James Monroe Bancorp, Inc.
(Nasdaq Capital Market: JMBI - news) today announced earnings for the first
quarter of 2006. Net income was $967,000 or $.17 per diluted share, compared to
net income of $768,000, or $.13 per diluted share for the first quarter of 2005,
an increase of 25.9% in net income and an increase of 29.6% in earnings per
diluted share over the previous year quarter. Book value per share at March 31,
2006 was $7.36 compared to $6.52 at the end of first quarter 2005. On March
27th, the Board of Directors of James Monroe Bancorp, Inc. announced its
agreement to merge with Mercantile Bankshares Corporation.
The per share calculations, weighted average diluted shares outstanding and the
book value per share, on a comparative basis to prior periods, have been
affected by the exercise of stock options late in the first quarter of 2006. The
exercise of options did not have a material effect on earnings per share or book
value per share.
Total assets at March 31, 2006 were $544.9 million, a 17.3% increase over assets
of $464.6 million at March 31, 2005. Also, total deposits at the end of March
increased 8.4% to $452.7 million compared to the end of March a year ago. Loans
outstanding increased 36.6% over first quarter 2005 to $398.2 million. Return on
average assets was .74% for the first quarter of 2006 compared to .70% for the
first quarter of 2005.
James Monroe Bancorp's President and Chief Executive Officer, John R. Maxwell,
commented, "We are pleased to report excellent growth since the first quarter of
last year. Loans increased 36.6% from a year ago in an environment of increasing
competition for high quality loans. With this growth, we continue to maintain
the same high level of loan quality. We had no loan charge offs during the first
quarter and our nonperforming loans declined again this quarter from $315,000 to
$241,000. Generating deposit growth, while also maintaining a strong net
interest margin, continues to be the challenge faced by all the banks in our
market. Our net interest margin decreased from first quarter last year from
3.82% first quarter 2005 to 3.69% in the first quarter 2006.
"Our results for the first quarter are consistent with our financial plan for
2006," David Pijor, Chairman of James Monroe Bancorp stated. "We are very
excited about the upcoming merger with Mercantile Bankshares. We share the same
philosophies and approach to serving our customers. Our customers will continue
to see the same level of superior customer service. In addition, Mercantile will
bring new services and products, providing additional benefits for our
customers."
James Monroe Bank, a full-service community bank and a wholly owned subsidiary
of James Monroe Bancorp, opened for business on June 8, 1998, at 3033 Wilson
Boulevard in Arlington, Virginia. The Bank now has branches in Annandale,
Leesburg, Manassas, Chantilly, and Fairfax City. The Company's common stock is
traded on the Nasdaq Capital Market under the symbol JMBI.
Forward Looking Statements: This press release contains forward-looking
statements within the meaning of the Securities and Exchange Act of 1934, as
amended, including statements of goals, intentions, and expectations as to
future trends, plans, events or results of Company operations and policies and
regarding general economic conditions. These statements are based upon current
and anticipated economic conditions, including the effect changes in economic
conditions may have on overall loan quality, changes in net interest margin due
to changes in interest rates, possible loss of key personnel, expectations with
respect to the proposed merger, changes in regulations and governmental
policies, and other conditions which by their nature, are not susceptible to
accurate forecast, and are subject to significant uncertainty. Because of these
uncertainties and the assumptions on which this discussion and the
forward-looking statements are based, actual future operations and results in
the future may differ materially from those indicated herein. Readers are
cautioned against placing undue reliance on any such forward-looking statements.
The Company's past results of operations do not necessarily indicate future
results.
NON-GAAP PRESENTATIONS
This press release refers to the efficiency ratio, which is computed by dividing
non-interest expense by the sum of net interest income on a tax equivalent basis
using a 34% rate and non-interest income. This is a financial measure is
not recognized under generally accepted accounting principles, but which we
believe provides investors with important information regarding our operational
efficiency. Comparison of our efficiency ratio with those of other companies may
not be possible because other companies may calculate the efficiency ratio
differently. The Company, in referring to its net income, is referring to income
under generally accepted accounting principles, or "GAAP".
ADDITIONAL INFORMATION ABOUT THE MERGER AND WHERE TO FIND IT
James Monroe Bancorp and its directors and executive officers may be
deemed to be participants in the solicitation of proxies from shareholders in
connection with the merger. Information about the directors and executive
officers of James Monroe Bancorp and their ownership of common stock is set
forth in the proxy statement, dated April 28, 2005, for James Monroe Bancorp's
2005 annual meeting of shareholders, as filed with the SEC on a Schedule 14A
which is available on the SEC's Web site at www.sec.gov. Additional information
regarding the interests of such participants may be obtained by reading the
proxy statement/prospectus to be distributed to James Monroe's shareholders in
connection with the merger when it becomes available.
James Monroe Bancorp and Mercantile Bankshares intend to file with the
SEC a proxy statement/prospectus and other relevant materials in connection with
the merger. The proxy statement/prospectus will be mailed to shareholders.
Investors and security holders of are urged to read the proxy
statement/prospectus and the other relevant materials when they become available
because they will contain important information about James Monroe Bancorp,
Mercantile Bankshares and the merger.
The proxy statement/prospectus and other relevant materials (when they
become available), and any other documents filed by James Monroe Bancorp or
Mercantile Bankshares may be obtained free of charge at the SEC's Web site at
www.sec.gov. In addition, investors and security holders may obtain free copies
of the documents filed with the SEC by James Monroe Bancorp by contacting
Richard Linhart, James Monroe Bancorp, Inc., 3033 Wilson Boulevard, Arlington,
VA 22201, telephone 703-526-5961 or from James Monroe Bank's Web site at
www.jamesmonroebank.com. Investors and security holders may obtain free copies
of the documents filed with the SEC by Mercantile Bankshares by contacting David
Borowy, Mercantile Bankshares Corporation, Two Hopkins Plaza, Baltimore, MD
21201, telephone 410-347-8039 or from Bankshares' Web site at
www.mrbk.com/invest/sec.html.
Investors and security holders are urged to read the proxy
statement/prospectus and the other relevant materials when they become available
before making any voting or investment decision with respect to the merger.
James Monroe Bancorp's news releases are available on our website at
www.jamesmonroebank.com.
Contact: John R. Maxwell, President & CEO
Richard I. Linhart, Senior Executive Vice President & COO
Phone: (703) 707-8855.
SOURCE: James Monroe Bancorp, Inc.
2
Condensed Balance Sheet
JAMES MONROE BANCORP, INC.
(Unaudited) (Unaudited)
MARCH 31, MARCH 31, %
(DOLLARS IN THOUSANDS) 2006 2005 CHANGE
---------------- ---------------- ----------
ASSETS
Cash and due from banks $ 15,568 $ 20,569 (24.3)%
Interest bearing deposits in banks 155 554 (72.0)%
Federal funds sold 8,000 2,040 292.2%
Securities available for sale, at fair value 117,285 142,279 (17.6)%
Loans held for sale 1,203 3,224 (62.7)%
Loans, net of unearned income 398,240 291,600 36.6%
Allowance for loan losses (4,127) (3,223) 28.0%
---------------- ----------------
Loans, net 394,113 288,377 36.7%
Other assets 8,547 7,584 12.7%
---------------- ----------------
TOTAL ASSETS $ 544,871 $ 464,627 17.3%
================ ================
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Noninterest bearing deposits $ 115,943 $ 108,502 6.9%
Interest bearing deposits 336,786 309,247 8.9%
---------------- ----------------
Total deposits 452,729 417,749 8.4%
Federal Home Loan Bank advances 31,000 - n.m.
Trust preferred capital notes 17,527 9,279 88.9%
Other liabilities 350 1,346 (74.0)%
---------------- ----------------
Total liabilities 501,606 428,374 17.1%
Total stockholders' equity 43,265 36,253 19.3%
---------------- ----------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 544,871 $ 464,627 17.3%
================ ================
3
FINANCIAL HIGHLIGHTS
JAMES MONROE BANCORP, INC.
(Unaudited)
THREE MONTHS ENDED MARCH 31,
----------------------------------------------------
(DOLLARS IN THOUSANDS EXCEPT SHARE DATA) 2006 2005 % CHANGE
------------------- ---------------- ---------
RESULTS OF OPERATIONS:
Total interest income $ 8,257 $ 5,780 42.9%
Total interest expense 3,606 1,756 105.4%
Net interest income 4,651 4,024 15.6%
Provision for loan losses 207 434 -52.3%
Gain on sale of securities - 8 n.m.
Gain on sale of loans 159 162 -1.9%
Noninterest income - other 231 162 42.6%
Noninterest expense 3,344 2,753 21.5%
Income before taxes 1,490 1,169 27.5%
Net income 967 768 25.9%
PER SHARE DATA:
Earnings per share, basic $ 0.17 $ 0.14 26.1%
Earnings per share, diluted - Note 1 $ 0.17 $ 0.13 29.6%
Weighted average shares
outstanding - basic 5,638,517 5,556,586 1.5%
- diluted - Note 1 5,830,861 5,866,301 -0.6%
Book value per share (at period-end) - Note 1 $ 7.36 $ 6.52 12.9%
Shares outstanding (at period-end) - Note 1 5,876,279 5,559,065 5.7%
PERFORMANCE RATIOS (ANNUALIZED):
Return on average assets 0.74% 0.70%
Return on average equity 9.64% 8.36%
Net interest margin 3.69% 3.82%
Efficiency Ratio 66.34% 63.20%
OTHER RATIOS:
Allowance for loan losses to total loans 1.04% 1.11%
Equity to assets 7.94% 7.80%
Non-performing loans:
Amount $ 241 $ 315
Percent of total loans 0.06% 0.11%
Charged-off loans:
Net amount $ - $ (1)
Percent of average loans 0.00% 0.00%
Risk-adjusted capital ratios:
Leverage ratio 11.5% 10.5%
Tier I 14.7% 14.7%
Total 16.1% 15.8%
AVERAGE BALANCES:
Assets $ 531,104 $ 445,879 19.1%
Earning assets 511,272 426,838 19.8%
Loans 387,568 269,057 44.0%
Deposits 451,221 396,099 13.9%
Stockholders' equity 40,699 37,286 9.2%
- ----------------------------------------------------------
Note 1 - The exercise of options late in the first quarter did not have a
material effect on earnings per share or book value.