EXHIBIT 99
[JAMES MONROE BANCORP, INC. LOGO OMITTED]
3033 Wilson Blvd.
Arlington, VA 22201
FOR IMMEDIATE RELEASE: JANUARY 20, 2004
James Monroe Bancorp, Inc. Reports 68% Earnings Increase for 2003
ARLINGTON, VA, (BUSINESS WIRE)--January 20, 2004.--James Monroe Bancorp, Inc.
(Nasdaq: JMBI - news) today announced significant earnings and asset growth for
the year ended December 31, 2003.
For the year ended December 31, 2003, James Monroe Bancorp, Inc. reported
earnings of $2,601,000, an increase of 68% over the previous year's earnings of
$1,553,000. Earnings per share for 2003 were $1.02, an increase of 42% from the
$.72 earned in 2002. Return on average assets was .97% for 2003 compared to .88%
for 2002. Return on average equity was 11.94% for 2003 compared to 10.15% for
2002. It was noted that the Company completed two capital raising efforts during
2003, raising $4 million through a trust preferred offering in the third quarter
of 2003, and raising $13.8 million through the sale of 600,000 shares of common
stock at $23 per share in November.
At December 31, 2003, total assets were $305,755,000 and total deposits were
$255,116,000, up 28% and 19% respectively over the previous year. Loans at
December 31, 2003 were $169,047,000, an increase of 39.7% over the previous
year.
James Monroe Bancorp, Inc. earned $792,000, or $.29 per share in the fourth
quarter of 2003 compared to $661,000 or $.29 per share in earnings for the
fourth quarter of 2002. The Company increased average shares outstanding by
428,000 shares in fourth quarter 2003, compared to fourth quarter 2002, as a
result of the equity offering completed in November 2003. In addition, earnings
per share for 2002 have been adjusted for the 5-for-4 stock split paid in the
second quarter of 2003.
John Maxwell, President and CEO, stated, "We are extremely pleased to report
these strong results to our shareholders. We are proud of our success in a
market characterized by increasing competition." Mr. Maxwell added, "Our
challenge in 2003 was to add experienced lenders to increase our loan growth,
improving our loan to deposit ratio. In the third and fourth quarter we were
successful in hiring five experienced Northern Virginia lenders, strengthening
our lending team for 2004."
Mr. Maxwell also reported that James Monroe Bank has filed an application with
appropriate banking regulators for approval to open the Bank's fifth branch
(sixth banking location) in 2004. Upon approval, the Bank expects to open the
Chantilly Branch in May at 3914 Centreville Road, Chantilly, Virginia. This
branch will be in the heart of the growing western Fairfax County market.
David Pijor, Chairman of James Monroe Bancorp, Inc., also stated "The response
to our recent equity offering, which raised $13.8 million in new equity capital,
was gratifying and indicative of the confidence we are building in the
communities we serve. This capital, along with the $4 million in trust preferred
proceeds raised in the third quarter, will provide sufficient capital to support
current and future growth. Since opening the bank in 1998, our financial
strategy has been to maintain a balance of growth and profitability. This
approach continues to improve shareholder value in James Monroe Bancorp."
James Monroe Bank is a full-service community bank and a wholly owned subsidiary
of James Monroe Bancorp, Inc. The Bank has locations in Arlington, Annandale,
Leesburg (2), 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 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.
Financial Highlights
--------------------
James Monroe Bancorp, Inc.
(Unaudited) (Audited)
December 31, December 31, %
($ in thousands) 2003 2002 Change
------------------ ------------------ -------
Assets
Cash and due from banks $ 12,012 $ 11,051 8.7%
Federal funds sold and cash equivalents - 29,481
Investment securities available for sale 122,328 76,063 60.8%
Mortgages held for sale 561 -
Loans 169,047 121,047 39.7%
Less: Allowance for loan losses (1,955) (1,390) 40.6%
Other assets 3,762 2,541 48.1%
------------------ ------------------
Total Assets $ 305,755 $ 238,793 28.0%
================== ==================
Liabilities and Stockholders' Equity
Non-interest bearing accounts $ 65,598 $ 66,729 -1.7%
Interest-bearing deposits 189,518 147,141 28.8%
------------------ ------------------
Total deposits 255,116 213,870 19.3%
Federal funds purchased 6,990 -
Trust preferred capital notes 9,000 5,000 80.0%
Other liabilities 758 728 4.1%
------------------ ------------------
Total liabilities 271,864 219,598 23.8%
Stockholders' equity 33,891 19,195 76.6%
------------------ ------------------
Total Liabilities and Stockholders' Equity $ 305,755 $ 238,793 28.0%
================== ==================
Financial Highlights
James Monroe Bancorp, Inc.
For the Years Ended December 31,
--------------------------------------------------------
($ in thousands except share data) 2003 2002 % Change
--------------------- --------------------- ---------
RESULTS OF OPERATIONS:
Total interest income $ 13,026 $ 10,091 29.1%
Total interest expense 3,618 3,609 0.2%
Net interest income 9,408 6,482 45.1%
Provision for loan losses 662 483 37.1%
Noninterest income 1,147 760 50.9%
Noninterest expense 5,964 4,394 35.7%
Income before taxes 3,929 2,365 66.1%
Net income 2,601 1,553 67.5%
PER SHARE DATA:
Earnings per share, basic $ 1.09 $ 0.75 45.7%
Earnings per share, diluted $ 1.02 $ 0.72 41.7%
Weighted average shares
outstanding -basic 2,393,287 2,054,844 16.5%
-diluted 2,553,267 2,160,539 18.2%
Book value (at period-end) $ 11.51 $ 8.34 38.0%
Shares outstanding (at period-end) 2,943,802 2,300,846 27.9%
PERFORMANCE RATIOS:
Return on average assets 0.97% 0.88%
Return on average equity 11.94% 10.15%
Net interest margin 3.73% 3.90%
Efficiency Ratio 56.50% 60.67%
OTHER RATIOS:
Allowance for loan losses to total
loans 1.16% 1.15%
Equity to assets 11.08% 8.04%
Nonperforming loans to total
loans 0.30% 0.24%
Net charge-offs to average loans 0.07% 0.12%
AVERAGE BALANCES:
Assets $ 267,826 176,568 51.7%
Earning assets 252,515 166,101 52.0%
Loans 145,118 106,106 36.8%
Deposits 238,342 156,951 51.9%
Stockholders' equity 21,782 15,294 42.4%