EX-99.1 3 dex991.htm PRESS RELEASE Press Release

Exhibit 99.1

 

Bank of the James Financial Group, Inc. announces results for 1st Quarter 2004

 

Lynchburg Va., April 20, 2004.

 

Bank of the James Financial Group, Inc. (OTCBB:BOJF) (quarterly consolidated results unaudited) reported today total net income after tax of $341,000 or $0.34 per basic share for the quarter ending March 31, 2004 compared to net income of $305,000 or $0.33 per basic share for the same period a year ago. Earnings per share amounts for 2004 reflect the 10% stock dividend paid by the company during January, 2004. Return on average assets and return on average equity for the quarter ended March 31, 2004 were 0.93% and 11.89% respectively.

 

Net interest income for the quarter ended March 31, 2004 was $1,575,000 as compared to net interest income of $1,232,000 in the same quarter of 2003, an increase of 27.8%. The increase in net interest income is attributable to an increase in average interest earning assets from $106,369,000 in the first quarter 2003 to $139,569,000 or 31.2% for the same period in 2004. Interest earning assets are composed primarily of loans and investments. Despite similar growth in average interest bearing liabilities from $88,760,000 in the first quarter 2003 to $120,597,000 or 35.9% in the first quarter 2004, overall net interest expense decreased as the result of an effort to lower the concentration in certificates of deposit and reallocate the funds to low cost savings accounts.

 

The net interest margin decreased slightly to 4.53% in the first quarter of 2004 from 4.65% in the same period a year ago. The average rate on earning assets decreased 81 basis points from 7.01% in the first quarter of 2003 to 6.20% in the first quarter of 2004 and the average rate on interest-bearing liabilities decreased 69 basis points from 2.42% in the first quarter of 2003 to 1.73% in the first quarter of 2004.

 

Total assets as of March 31, 2004 were $158,505,000 compared to $145,011,000 at the end of 2003, an increase of $13,494,000 or 9.3%. The increase is attributable to deposit growth from $133,485,000 for the period ended December 31, 2003 to $143,858,000 at the end of the first quarter, 2004, for an increase of 7.8%

 

Loans, net of unearned income and loan loss provision, increased from $114,603,000 as of December 31, 2003 to $118,974,000 as of March 31, 2004, an increase of 3.8%. The loan loss provision of $1,507,000 represented 1.25% of total loans at the end of the first quarter, 2004. Management deems this provision to be adequate.

 

Bank of the James, the sole subsidiary of Bank of the James Financial Group, Inc., currently operates four full service locations as well as a mortgage division in the Lynchburg, Virginia area. 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. Bank of the James Financial Group, Inc. (the “Company”) 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 is contained in the Company’s filings with the Securities and Exchange Commission and previously filed by Bank of the James (predecessor of the Company) with the Federal Reserve Board concerning factors that could cause actual results to materially differ from those in the forward-looking statements.

 

# # #

Bank of the James Financial Group, Inc.

(000’s) except ratios and percent data

audited

 

Selected Data:

    Three
months
ending
Mar 31,
2004
    Three
months
ending
Mar 31,
2003
    Change
     Year
to
date
Mar 31,
2004
    Year
to
date
Mar 31,
2003
    Change
  

Interest income

    $ 2,159    $ 1,839      17.40 %   $ 2,159    $ 1,839      17.40 %

Interest expense

      584      607      -3.79 %     584      607      -3.79 %

Net Interest income

      1,575      1,232      27.84 %     1,575      1,232      27.84 %

Provision for loan losses

      77      208      -62.98 %     77      208      -62.98 %

Noninterest income

      290      385      -24.68 %     290      385      -24.68 %

Noninterest expense

      1,268      937      35.33 %     1,268      937      35.33 %

Income taxes

      179      167      7.19 %     179      167      7.19 %

Net income

      341      305      11.80 %     341      305      11.80 %

Weighted Average Shares Outstanding

      1,002,514      935,630      7.15 %     1,002,514      935,630      7.15 %

Basic net income per share *

    $ 0.34    $ 0.33    $ 0.01     $ 0.34    $ 0.33    $ 0.01  

Fully diluted net income per share

    $ 0.31    $ 0.32    $ (0.01 )   $ 0.31    $ 0.32    $ (0.01 )

Balance Sheet at period end:

    Mar 31,
2004
    Dec 31,
2003
    Change
     Mar 31,
2003
    Dec 31,
2002
    Change
  

Loans, net

    $ 118,974    $ 114,603      3.81 %   $ 95,110    $ 85,750      10.92 %

Total securities

      16,547      14,956      10.64 %     11,781      16,478      -28.50 %

Total deposits

      143,858      133,485      7.77 %     105,901      103,509      2.31 %

Stockholders’ equity

      11,711      11,309      3.55 %     10,244      9,973      2.72 %

Total assets

      158,505      145,011      9.31 %     118,560      114,071      3.94 %

Shares Outstanding

      1,029,267      935,630      93,637       935,630      935,630      —    

Book value per share

      11.38      12.09      (0.71 )     10.95      10.66    $ 0.29  

Daily averages:

    Three
months
ending
Mar 31,
2004
    Three
months
ending
Mar 31,
2003
    Change
     Year
to
date
Mar 31,
2004
    Year
to
date
Mar 31,
2003
    Change
  

Loans, net

    $ 116,459    $ 90,452      28.75 %   $ 116,459    $ 90,452      28.75 %

Total securities

      14,423      13,425      7.43 %     14,423      13,425      7.43 %

Total deposits

      135,080      99,980      35.11 %     135,080      99,980      35.11 %

Stockholders’ equity

      11,504      10,221      12.55 %     11,504      10,221      12.55 %

Interest earning assets

      139,569      106,369      31.21 %     139,569      106,369      31.21 %

Interest bearing liabilities

      120,597      88,760      35.87 %     120,597      88,760      35.87 %

Total Assets

      147,508      112,485      31.14 %     147,508      112,485      31.14 %

Financial Ratios:

    Three
months
ending
Mar 31,
2004
     Three
months
ending
Mar 31,
2003
     Change
     Year
to
date
Mar 31,
2004
     Year
to
date
Mar 31,
2003
     Change
  

Return on average assets

      0.93 %     1.09 %   (0.16 )     0.93 %     1.09 %   (0.16 )

Return on average equity

      11.89 %     11.97 %   (0.08 )     11.89 %     11.97 %   (0.08 )

Net Interest Margin

      4.53 %     4.65 %   (0.12 )     4.53 %     4.65 %   (0.12 )

Efficiency ratio

      67.99 %     57.95 %   10.04       67.99 %     57.95 %   10.04  

Average Equity to average assets

      7.80 %     9.09 %   (1.29 )     7.80 %     9.09 %   (1.29 )

Allowance for loan losses:

    Three
months
ending
Mar 31,
2004
     Three
months
ending
Mar 31,
2003
     Change
     Year
to
date
Mar 31,
2004
     Year
to
date
Mar 31,
2003
     Change
  

Beginning balance

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

Provision for losses

      77       208     -62.98 %     77       208     -62.98 %

Charge-offs

      (63 )     (91 )   -30.77 %     (63 )     (91 )   -30.77 %

Recoveries

      42       10     320.00 %     42       10     320.00 %

Ending balance

      1,507       1,208     24.75 %     1,507       1,208     24.75 %

Nonperforming assets:

    Mar 31,
2004
     Dec 31,
2003
     Change
     Mar 31,
2003
     Dec 31,
2002
     Change
  

Nonaccrual loans

      38       85     -55.29 %     22       42     -47.62 %

Restructured loans

      none       none     —         none       none     —    

Total nonperforming loans

      38       85     -55.29 %     22       42     -47.62 %

Other real estate owned

      none       none     —         none       none     —    

Total nonperforming assets

      38       85     -55.29 %     22       42     -47.62 %

Asset quality ratios:

    Mar 31,
2004
     Dec 31,
2003
     Change
     Mar 31,
2003
     Dec 31,
2002
     Change
  

Nonperforming loans to total loans

      0.03 %     0.07 %   (0.04 )     0.02 %     0.05 %   (0.03 )

Allowance for loan losses to total loans

      1.25 %     1.25 %   0.00       1.25 %     1.24 %   0.01  

Allowance for loan losses to nonperforming loans

      3965.79 %     1707.06 %   2,258.73       5490.91 %     2573.81 %   2,917.10  
* Basic EPS is calculated using the average shares outstanding for the period. Average shares outstanding

increased in the 1st qtr 2004 due to the effects of the 10% stock dividend paid on 1/27/04.