Exhibit 99
[Logo Omitted]
James Monroe Bancorp, Inc.
3033 Wilson Blvd.
Arlington, VA 22201
For Immediate Release: July 15, 2003
James Monroe Bancorp Reports Record Earnings
ARLINGTON, VA, (BUSINESS WIRE)--July 15, 2003.--James Monroe Bancorp, Inc.
(NasdaqSC: JMBI - news) today announced record earnings results for the second
quarter and first half of 2003. Second quarter net income was $610,000 or $.25
per share on a fully-diluted basis, compared to net income of $296,000, or $.15
per share on a fully-diluted basis for the second quarter of 2002 more than
doubling 2002's quarterly net income results. For the six-month period of 2003,
James Monroe Bancorp earned $1,074,000 compared with $510,000 for the first half
of 2002, again doubling its net income from the same period a year ago. On a
fully-diluted basis, per share results for the six-month period of 2003 was $.44
compared with $.27 per share for the same period last year.
Total assets at June 30, 2003 were $297 million, a 56% increase over assets of
$190 million of total assets at June 30, 2003. Deposits at the end of June were
$271 million, an increase of $104 million or 62% from a year ago. Loans totaled
$146 million up 39%.
James Monroe Bancorp's President and Chief Executive Officer, John R. Maxwell,
commented, "James Monroe is extremely gratified with the Company's results for
these periods. Considering the fact that the Fed has cut interest rates again,
which continues to compresses community banks net interest margin, our net
interest margin has held up extremely well at 3.77% for the quarter and 3.83%
for the first six-months. Deposit growth has been exceptional, which is a good
indication that we continue to provide the kinds of products and the services
that the customers in the communities we serve are looking for from their bank."
Mr. Maxwell went on to say that, "Of more significance to us, our earnings are
derived from core banking services, although we did realize $85 thousand in
pre-tax gains on the sale of mortgage loans from our newly formed mortgage
division in the first half of 2003 and $41 thousand in pre-tax securities gains
resulting from strategic positioning in our securities portfolio. We are very
pleased with the progress our new mortgage division has made in a very short
period of time. Our asset quality remains very strong and continues to grow in a
environment of intense competition for good credits," noted Mr. Maxwell.
"Our board has set growth, profitability, and shareholder return as strategic
goals for this Company," said David W. Pijor, James Monroe Bancorp's Chairman.
"As we complete our first five years of operations, our results in all three
categories have significantly exceeded all our expectations when we started the
bank."
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, and Fairfax City. The Company's common stock is traded on the Nasdaq
Small Cap 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, need for
additional capital should James Monroe experience faster than anticipated
growth, factors which could affect James Monroe's ability to implement its
strategy, 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".
James Monroe Bancorp's news releases are available on our website at
www.jamesmonroebank.com.
Contact: John R. Maxwell, President & CEO
Richard I. Linhart, Executive Vice President & COO
Phone: (703)524-8100.
SOURCE: James Monroe Bancorp, Inc.
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FINANCIAL HIGHLIGHTS
JAMES MONROE BANCORP, INC.
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THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30,
-------------------------------- -------------------------------
($ IN THOUSANDS EXCEPT SHARE DATA) 2003 2002 2003 2002
--------------- ------------- -------------- -------------
RESULTS OF OPERATIONS:
Total interest income $ 3,162 $ 2,403 $ 6,088 $ 4,435
Total interest expense 901 937 1,777 1,601
Net interest income 2,261 1,466 4,311 2,834
Provision for loan losses 171 70 349 251
Other income 280 123 429 268
Noninterest expense 1,448 1,066 2,788 2,072
Income before taxes 922 453 1,603 779
Net income 610 296 1,074 510
PER SHARE DATA:
Earnings per share, basic $ 0.26 $ 0.16 $ 0.47 $ 0.28
Earnings per share, diluted $ 0.25 $ 0.15 $ 0.44 $ 0.27
Weighted average shares
outstanding-basic 2,301,946 1,815,808 2,301,295 1,809,536
-diluted 2,477,247 1,920,871 2,464,435 1,907,540
Book value (at period-end) $ 8.78 $ 7.60 $ 8.78 $ 7.60
Shares outstanding (at period-end) 2,303,375 2,299,455 2,303,375 2,299,455
PERFORMANCE RATIOS (annualized):
Return on average assets 0.96% 0.72% 0.90% 0.70%
Return on average equity 12.00% 9.45% 10.93% 8.32%
Net interest margin 3.77% 3.82% 3.83% 4.15%
Efficiency Ratio 56.99% 67.09% 58.82% 66.80%
OTHER RATIOS:
Allowance for loan losses to total
loans 1.15% 1.22% 1.15% 1.22%
Equity to assets 6.80% 9.20% 6.80% 9.20%
Nonperforming loans to total
loans 0.29% 0.28% 0.29% 0.28%
Net charge-offs to average loans 0.01% 0.00% 0.05% 0.00%
Risk-Adjusted Capital Ratios:
Tier 1 13.5% 17.9%
Total 14.4% 18.9%
Leverage Ratio 9.5% 13.4%
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FINANCIAL HIGHLIGHTS
JAMES MONROE BANCORP, INC.
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June 30, December 31, June 30,
($ in thousands) 2003 2002 2002
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ASSETS
Cash and due from banks $ 22,182 $ 11,051 $ 12,703
Federal funds sold and cash equivalents 42,971 29,481 23,990
Investment securities available-for-sale 81,580 76,063 46,505
Mortgages held for sale 3,484 -- --
Loans 145,687 121,047 105,370
Less: Allowance for loan losses (1,669) (1,390) (1,283)
Other assets 2,819 2,541 2,550
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TOTAL ASSETS $297,054 $238,793 $189,835
======== ======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Non-interest bearing deposits $106,861 $ 66,729 $ 44,520
Interest-bearing deposits 164,238 147,141 122,371
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Total deposits 271,099 213,870 166,891
Trust preferred capital notes 5,000 5,000 5,000
Other liabilities 741 728 478
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Total liabilities 276,840 219,598 172,369
Shareholders' equity 20,214 19,195 17,466
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TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $297,054 $238,793 $189,835
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FINANCIAL HIGHLIGHTS
JAMES MONROE BANCORP, INC.
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THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30,
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($ in thousands) 2003 2002 2003 2002
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AVERAGE BALANCES $255,363 $164,835 $240,815 $147,197
Earning assets 240,637 154,010 227,057 137,683
Loans 140,611 101,283 134,467 96,900
Deposits 228,822 146,615 215,204 131,521
Shareholders' equity 20,392 12,562 19,811 12,365
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