EX-99.1 3 dex991.htm EXHIBIT 99.1 Exhibit 99.1

Exhibit 99.1

 

[Bank of the James Letterhead]

 

Bank of the James Financial Group, Inc. announces results of Bank of the James for 4th Quarter 2003

 

Lynchburg Va., January 22, 2004

 

Bank of the James Financial Group, Inc. (OTCBB:BOJF) announced the results of its wholly-owned subsidiary, Bank of the James, for the quarter ended December 31, 2003 (quarterly results unaudited). As of January 1, 2004, Bank of the James Financial Group, Inc. is the holding company for Bank of the James. Bank of the James Financial Group has no other subsidiaries.

 

Bank of the James Financial Group, Inc. reported today that Bank of the James had total net income after tax of $314,000 or $0.34 per basic share for the quarter ending December 31, 2003 as compared with net income of $290,000 or $0.31 per share for the same period a year ago. Return on average assets and return on average equity for the quarter ended December 31, 2003 were 0.90% and 11.08% respectively.

 

For the full year ended December 31, 2003 Bank of the James’ net income was $1,416,000 or $1.51 per basic share compared with net income of $814,000 or $0.87 per basic share for the year ended December 31, 2002. Return on average assets and return on average equity for the year ended December 31, 2003 were 1.14% and 13.20% respectively.

 

Bank of the James’ net interest income for 2003 increased $1,514,000 to $5,485,000 or 38.1% from net interest income of $3,971,000 in 2002. The growth in net interest income was due to the increase in average interest-earning assets which was the result of growth in the loan and investment portfolios funded by the growth in deposits and an increase in the net interest margin. The net interest margin increased to 4.68% in 2003 from 4.31% in 2002.

 

Bank of the James had total assets as of December 31, 2003 of $145,011,000 compared to $114,071,000 at the end of the same period in 2002, an increase of $30,940,000 or 27.1%. The increase may be attributed to strong deposit growth from $103,509,000 for the period ended December 31, 2002 to $133,485,000 at the end of the same period, 2003, for an increase of 29.0%.

 

Bank of the James’ loans, net of unearned income, increased from $85,750,000 as of December 31, 2002 to $114,603,000 as of December 31, 2003, an increase of 33.7%. This increase can be attributed to a low interest rate environment that made borrowing more attractive to the Bank’s customers, the Bank’s increased presence in the market, and the Bank’s reputation for service. The loan loss provision of $1,451,000 represented 1.25% of total loans at the end of the fourth quarter, 2003. Management deems this provision to be adequate.

 

Bank of the James currently operates three full service locations in the Lynchburg, Virginia area and one mortgage division location. The Bank will open an additional branch located at 17000 Forest Rd. in Bedford County, Virginia in February 2004; the mortgage division will also relocate to 17000 Forest Rd. at this time. As of January 1, 2004, Bank of the James is a wholly owned subsidiary of Bank of the James Financial Group, Inc. Bank of the James Financial Group, Inc. common stock is quoted on the Over The Counter Bulletin Board under the symbol “BOJF” (some web sites require BOJF.OB to quote).

# # #

 

Cautionary Statement Regarding Forward-Looking Statements

 

This press release report contains statements that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. The words “believe,” “estimate,” “expect,” “intend,” “anticipate,” “plan” and similar expressions and variations thereof identify certain of such forward-looking statements which speak only as of the dates on which they were made. The Bank undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those indicated in the forward-looking statements as a result of various factors. Such factors include, but are not limited to competition, general economic conditions, potential changes in interest rates, and changes in the value of real estate securing loans made by the Bank. Additional information concerning factors that could cause actual results to materially differ from those in the forward-looking statements is contained in Bank of the James’ filings with the Federal Reserve Board.

 

# # #

Bank of the James

(000’s) except ratios and percent data

audited

 

     Three months ending
          Year to date
       

Selected Data:

   

Dec 31,

2003

   

Dec 31,

2002

    Change
    

Dec 31,

2003

   

Dec 31,

2002

    Change
  

Interest income

    $ 2,056    $ 1,819      13.03 %   $ 7,754    $ 6,522      18.89 %

Interest expense

      561      658      -14.74 %     2,269      2,551      -11.05 %

Net Interest income

      1,495      1,161      28.77 %     5,485      3,971      38.13 %

Provision for loan losses

      118      136      -13.24 %     552      624      -11.54 %

Noninterest income

      325      419      -22.43 %     1,626      1,380      17.83 %

Noninterest expense

      1,228      1,004      22.31 %     4,405      3,493      26.11 %

Income taxes

      160      150      6.67 %     738      420      75.71 %

Net income

      314      290      8.28 %     1,416      814      73.96 %

Basic net income per share

    $ 0.34    $ 0.31    $ 0.03     $ 1.51    $ 0.87    $ 0.64  

Fully diluted net income per share

    $ 0.31    $ 0.30    $ 0.01     $ 1.47    $ 0.85    $ 0.62  

Book value per share

      —        —        —       $ 12.09    $ 10.66    $ 1.43  

Balance Sheet at

period end:

    Dec 31,
2003
   

Dec 31,

2002

    Change
    

Dec 31,

2002

   

Dec 31,

2001

    Change
  

Loans, net

    $ 114,603    $ 85,750      33.65 %   $ 85,750    $ 63,848      34.30 %

Total securities

      14,956      16,478      -9.24 %     16,478      5,962      176.38 %

Total deposits

      133,485      103,509      28.96 %     103,509      66,189      56.38 %

Stockholders’ equity

      11,309      9,973      13.40 %     9,973      9,121      9.34 %

Total assets

      145,011      114,071      27.12 %     114,071      75,587      50.91 %
     Three months ending
          Year to date
       

Daily averages:

   

Dec 31,

2003

   

Dec 31,

2002

    Change
    

Dec 31,

2003

   

Dec 31,

2002

    Change
  

Loans, net

    $ 108,899    $ 82,679      31.71 %   $ 100,522    $ 75,447      33.24 %

Total securities

      12,600      14,536      -13.32 %     11,508      9,695      18.70 %

Total deposits

      126,813      100,910      25.67 %     112,320      87,579      28.25 %

Stockholders’ equity

      11,247      9,909      13.50 %     10,729      9,518      12.72 %

Interest earning assets

      130,791      104,989      24.58 %     117,089      92,166      27.04 %

Interest bearing liabilities

      110,692      88,053      25.71 %     97,948      76,658      27.77 %

Total Assets

      138,286      111,328      24.21 %     123,954      97,459      27.19 %

     Three months ending
           Year to date
        

Financial Ratios:

   

Dec 31,

2003

    

Dec 31,

2002

     Change
    

Dec 31,

2003

    

Dec 31,

2002

     Change
  

Return on average assets

      0.90 %     1.03 %   (0.13 )     1.14 %     0.84 %   0.31  

Return on average equity

      11.08 %     11.61 %   (0.53 )     13.20 %     8.55 %   4.65  

Net Interest Margin

      4.53 %     4.39 %   0.15       4.68 %     4.31 %   0.38  

Efficiency ratio

      67.47 %     63.54 %   3.93       61.95 %     65.28 %   (3.33 )

Average Equity to average assets

      8.13 %     8.90 %   (0.77 )     8.66 %     9.77 %   (1.11 )
     Three months ending
           Year to date
        

Allowance for loan losses:

   

Dec 31,

2003

    

Dec 31,

2002

     Change
    

Dec 31,

2003

    

Dec 31,

2002

     Change
  

Beginning balance

    $ 1,376     $ 1,102     24.86 %   $ 1,081     $ 747     44.71 %

Provision for losses

      118       136     -13.24 %     552       624     -11.54 %

Charge-offs

      (62 )     (172 )   -63.95 %     (263 )     (308 )   -14.61 %

Recoveries

      19       15     26.67 %     81       18     350.00 %

Ending balance

      1,451       1,081     34.23 %     1,451       1,081     34.23 %

Nonperforming assets:

   

Dec 31,

2003

    

Dec 31,

2002

     Change
    

Dec 31,

2003

    

Dec 31,

2002

     Change
  

Nonaccrual loans

      85       42     102.38 %     42       159     -73.58 %

Restructured loans

      none       none     —         none       none     —    

Total nonperforming loans

      85       42     102.38 %     42       159     -73.58 %

Other real estate owned

      none       none     —         none       111     -100.00 %

Total nonperforming assets

      85       42     102.38 %     42       270     -84.44 %

Asset quality ratios:

   

Dec 31,

2003

    

Dec 31,

2002

         Change    
    

Dec 31,

2003

    

Dec 31,

2002

         Change    
  

Nonperforming loans to total loans

      0.07 %     0.05 %   0.02       0.05 %     0.25 %   (0.20 )

Allowance for loan losses to total loans

      1.25 %     1.24 %   0.01       1.24 %     1.16 %   0.09  

Allowance for loan losses to nonperforming loans

      1707.06 %     2573.81 %   (866.75 )     2573.81 %     469.81 %   2,104.00