Exhibit 99
[Logo Omitted]
James Monroe Bancorp, Inc.
3033 Wilson Blvd.
Arlington, VA 22201
PRESS RELEASE
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FOR IMMEDIATE RELEASE
For Immediate Release: January 19, 2005
JAMES MONROE BANCORP, INC. REPORTS RECORD GROWTH IN 2004
ARLINGTON, VA, (BUSINESS WIRE)--January 19, 2005.--James Monroe Bancorp, Inc.
(Nasdaq: JMBI - news) today announced significant earnings and asset growth for
the year ended December 31, 2004.
For the year ended December 31, 2004, James Monroe Bancorp, Inc. reported record
growth in all major balance sheet categories of assets, loans, and deposits over
2003. Assets grew $145 million, a 47% increase over 2003, ending the year at
$450 million of assets. Net loan growth was $81 million, a 48% increase over
2003, ending the year with $250 million of loans. Deposits grew $149 million to
$404 million for a 58% increase over 2003.
For the fourth quarter ended December 31, 2004, James Monroe Bancorp, Inc.
reported net income of $825 thousand, a 4% increase over fourth quarter 2003
earnings of $792 thousand and a 17% increase over the third quarter 2004 net
income of $705 thousand. On a diluted per share basis, fourth quarter earnings
per share were $.18 compared to the third quarter of 2004 of $.15, an increase
of 20%, and $.19 for the fourth quarter of 2003, a decrease of 9%. There were
additional average shares outstanding in the fourth quarter of 2004 compared to
the same quarter last year as a result of the equity offering in November 2003.
The additional shares affect the comparability of the quarterly earnings per
share.
For the full year ended December 31, 2004, the Company earned $2,970,000 or 14%
over the $2,601,000 earned in 2003. On a diluted per share basis, earnings per
share for the full year 2004 were $.64 or a 6.6% decrease from 2003 earnings per
share of $.68. The diluted average shares outstanding were 845,000 greater due
to the equity offering in November 2003.
Return on average assets was .83% in 2004 and .97% in 2003. Return on average
equity was 8.35% in 2004 compared to 11.94% in 2003, with the decline due to the
increased equity in 2004 over 2003 as a result of the $13 million in additional
equity raised in 2003. Along with the significant loan growth, asset quality
remains very strong with .07% charge offs as a percent of average loans in both
2004 and 2003. Further, nonperforming loans declined from $510 thousand at the
end of 2003 down to $349,000 at the end of 2004.
John Maxwell, President and CEO, stated, "We are extremely pleased to report
these strong results to our shareholders. 2004 was a year of major initiatives
and significant investment in people and facilities that lays the platform for
strong future growth. In 2004 the Company opened two new branches, one in
Chantilly and one in Manassas, built-out a 7,000 square foot new operations
center, added significant lending and business development personnel in all our
regions, added additional personnel in the support functions, and addressed a
number of major new regulatory compliance requirements, such as the Patriot Act,
the Sarbanes-Oxley Law, and the Gramm-Leach-Bliley Act. We are very pleased that
even after these investments of significant financial and people resources, the
Company was able to produce record asset and loan growth of over 47% and
increase earnings by 14% over the previous year. We are very enthusiastic about
our prospects for 2005."
David Pijor, Chairman of James Monroe Bancorp, Inc., also stated "2004 was an
extremely busy year in our Company and much has been accomplished. Our
infrastructure, personnel, and systems platform are well positioned for further
record growth. The current regulatory compliance environment is requiring more
people and financial resources than ever before. Competition is fierce from
other community banks and the large regional banks, and every day we see new
banks come into our marketplace. We are very pleased to report to our
shareholders that their Company has shown the ability to meet these challenges
and still produce solid returns year after year."
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, Fairfax City, Chantilly and Manassas. 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.
THREE MONTHS ENDED DECEMBER 31, TWELVE MONTHS ENDED DECMEBER 31,
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2004 2003 % Change 2004 2003 % Change
--------------- --------------- ----------- ------------- --------------- -----------
(Dollars in thousands except share data) (Unaudited) (Unaudited) (Unaudited) (Audited)
RESULTS OF OPERATIONS:
Total interest income $ 5,333 $ 3,567 49.5% $ 17,462 $ 13,026 34.1%
Total interest expense 1,632 965 69.1% 4,833 3,618 33.6%
Net interest income 3,701 2,602 42.2% 12,629 9,408 34.2%
Provision for loan losses 224 190 17.9% 990 662 49.5%
Gain on sale of securities 5 142 -96.5% 59 299 -80.3%
Gain on sale of mortgages 175 64 173.4% 423 255 65.9%
Noninterest income - other 174 154 13.0% 693 593 16.9%
Noninterest expense 2,574 1,568 64.2% 8,287 5,964 39.0%
Income before taxes 1,257 1,204 4.4% 4,527 3,929 15.2%
Net income 825 792 4.2% 2,970 2,601 14.2%
PER SHARE DATA:
Earnings per share, basic $ 0.19 $ 0.21 -10.1% $ 0.67 $ 0.73 -7.8%
Earnings per share, diluted $ 0.18 $ 0.19 -8.8% $ 0.64 $ 0.68 -6.6%
Weighted average shares
outstanding - basic 4,440,940 3,956,060 12.3% 4,435,905 3,589,931 23.6%
- diluted 4,683,093 4,187,978 11.8% 4,675,171 3,829,901 22.1%
Book value (at period-end) $ 8.30 $ 7.67 8.3% $ 8.30 $ 7.67 8.3%
Shares outstanding (at period-end) 4,445,224 4,415,703 0.7% 4,445,224 4,415,703 0.7%
PERFORMANCE RATIOS (ANNUALIZED):
Return on average assets 0.76% 1.05% 0.83% 0.97%
Return on average equity 8.93% 11.50% 8.35% 11.94%
Net interest margin 3.58% 3.64% 3.72% 3.73%
Efficiency Ratio 63.48% 52.94% 60.03% 56.50%
OTHER RATIOS:
Allowance for loan losses to total loans 1.12% 1.16% 1.12% 1.16%
Equity to assets 8.19% 11.09% 8.19% 11.09%
Non-performing loans:
Amount $ 349 $ 510 $ 349 $ 510
Percent of total loans 0.14% 0.30% 0.14% 0.30%
Charged-off loans:
Net amount $ 12 $ - $ 155 $ 97
Percent of average loans 0.00% 0.00% 0.07% 0.07%
Risk-adjusted capital ratios
Tier I 16.2% 21.9% 16.2% 21.9%
Total 17.1% 22.9% 17.1% 22.9%
Leverage ratio 10.7% 14.3% 10.7% 14.3%
AVERAGE BALANCES:
Assets $ 430,722 $ 300,064 43.5% $ 359,216 $ 267,826 34.1%
Earning assets 411,826 283,623 45.2% 339,679 252,516 34.5%
Loans 240,812 161,022 49.6% 208,441 145,118 43.6%
Deposits 383,961 261,700 46.7% 310,791 238,342 30.4%
Stockholders' equity 36,761 27,325 34.5% 35,576 21,782 63.3%
Condensed Balance Sheet
JAMES MONROE BANCORP, INC.
(Unaudited) (Audited)
DECEMBER 31, DECEMBER 31,
(DOLLARS IN THOUSANDS) 2004 2003
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ASSETS
Cash and due from banks $ 9,286 $ 11,908
Interest-bearing deposits in banks 2,442 -
Federal funds sold and cash equivalents 35,754 -
Investment securities available for sale 146,795 122,328
Mortgages held for sale 2,987 561
Loans 249,996 169,047
Less: Allowance for loan losses (2,790) (1,955)
Other assets 6,021 3,762
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TOTAL ASSETS $ 450,491 $ 305,651
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LIABILITIES AND STOCKHOLDERS' EQUITY
Non-interest bearing deposits $ 91,857 $ 65,598
Interest-bearing deposits 312,197 189,518
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Total deposits 404,054 255,116
Federal funds purchased - 6,886
Trust preferred capital notes 9,000 9,000
Other liabilities 536 758
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Total liabilities 413,590 271,760
Stockholders' equity 36,901 33,891
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 450,491 $ 305,651
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