EX-99.1 2 dex991.htm PRESS RELEASE Press Release

Exhibit 99.1

 

Contact: J. Todd Scruggs, Executive Vice President and CFO

(434) 846-2000    tscruggs@bankofthejames.com

 

For Immediate Release

 

Bank of the James Financial Group, Inc. Announces Results

For 2nd Quarter 2005

 

Lynchburg Va., July 22, 2005.........Bank of the James Financial Group, Inc. (OTCBB:BOJF) (quarterly consolidated results unaudited) reported today total net income after tax of $424,000 or $0.26 per basic share ($0.25 diluted) for the quarter ended June 30, 2005 and $767,000 or $0.49 per basic share ($0.46 diluted) year-to-date compared to net income of $439,000 or $0.28 per basic share ($0.27 diluted) and $780,000 or $0.51 per basic share ($0.48 diluted) for the respective periods a year ago. All earnings per share amounts have been adjusted to reflect the 10% stock dividend paid by the company during January, 2004 and the 50% stock split effected in the form of a dividend paid by the company in March, 2005.

 

Robert R. Chapman, III, the Bank’s President and CEO, stated “We are pleased with the results that we achieved both in the second quarter and for the year to date.” Chapman further noted that management believes the company’s financial performance continues to be strong, particularly in light of the increased expenses the company has incurred in 2005, including expenses related to the continued investment in infrastructure and personnel to accommodate the Bank’s growth and as well as the added expense of regulatory compliance, particularly Sarbanes-Oxley Section 404.

 

Several positive highlights for 2005 were identified despite the aforementioned increased expenses. Return on assets increased from 0.81% at the end of the 1st quarter ended March 31, 2005, to 0.94% at the end of the 2nd quarter ended June 30, 2005. Return on equity in the 2nd quarter 2005 also improved as compared to the 1st quarter 2005 increasing to 12.56% from 10.66% respectively.

 

Bank of the James, the company’s sole subsidiary, continues to attract deposits and experience strong demand for loans. Deposits increased from $153,834,000 at the year ended December 31, 2004 to $166,352,000 in the period ended June 30, 2005, an increase of 8.1%. The majority of this growth has been associated with the Main Street (downtown Lynchburg, Virginia) and Madison Heights (Amherst County, Virginia) locations. Loans, net of unearned income and loan loss provision have also increased from $140,272,000 at the year ended December 31, 2004 to $151,115,000 in the period ended June 30, 2005, an increase of 7.7%. These increases are directly responsible for the increase in total assets from $171,025,000 at the year ended December 31, 2004 to $185,507,000 in the period ended June 30, 2005, an increase of 8.4%.

 

Net interest income for the quarter ended June 30, 2005 was $2,022,000 as compared to net interest income of $1,637,000 in the same quarter of 2004, an increase of 23.5%. The net interest margin also increased to 4.72% in the second quarter of 2005 from 4.41% in the same period a year ago. This increase is attributable to the large number of adjustable rate loans in the loan portfolio, the interest rates on which have increased as the FOMC has increased the discount rate. Management believes the Bank continues to be well positioned to take advantage of any future rate increases by the FOMC because of its percentage of adjustable rate loans in the portfolio.

Non-interest income was improved through an increase in fees generated from mortgage origination volume. Non-interest income increased to $555,000 for the quarter ended June 30, 2005 as compared to $488,000 in the period ended June 30, 2004, an increase of 13.7%.

 

Bank of the James, a wholly owned subsidiary of Bank of the James Financial Group, Inc., currently operates five 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).

 

Selected financial highlights are shown below.

 

# # #

 

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 (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 Bank of the James (the “Bank”), the sole subsidiary of Bank of the James Financial Group, Inc. Additional information concerning factors that could cause actual results to materially differ from those in the forward-looking statements is contained in the Company’s filings with the Securities and Exchange Commission and previously filed by the Bank (as predecessor of the Company) with the Federal Reserve Board.

 

# # #

 

 

Bank of the James Financial Group, Inc.

(000’s) except ratios and percent data

unaudited

 

Selected Data:

   

Three
Months
Ending

Jun 30,

2005

   

Three
months
ending

Jun 30,

2004

    Change
    

Year

to

date

Jun 30,

2005

   

Year

to

date

Jun 30,

2004

    Change
  

Interest income

    $ 2,911    $ 2,229      30.60 %   $ 5,581    $ 4,388      27.19 %

Interest expense

      889      592      50.17 %     1,650      1,176      40.31 %

Net Interest income

      2,022      1,637      23.52 %     3,931      3,212      22.38 %

Provision for loan losses

      199      54      268.52 %     374      131      185.50 %

Noninterest income

      555      488      13.73 %     1,016      778      30.59 %

Noninterest expense

      1,735      1,410      23.05 %     3,411      2,678      27.37 %

Income taxes

      219      222      -1.35 %     395      401      -1.50 %

Net income

      424      439      -3.42 %     767      780      -1.67 %

Weighted Average Shares Outstanding

      1,600,468      1,544,436      3.63 %     1,579,900      1,524,104      3.66 %

Basic net income per share

    $ 0.26    $ 0.28    $ (0.02 )   $ 0.49    $ 0.51    $ (0.02 )

Fully diluted net income per share

    $ 0.25    $ 0.27    $ (0.02 )   $ 0.46    $ 0.48    $ (0.02 )

Balance Sheet at period end:

   

Jun 30,

2005

   

Dec 31,

2004

    Change
    

Jun 30,

2004

   

Dec 31,

2003

    Change
  

Loans, net

    $ 151,115    $ 140,272      7.73 %   $ 123,854    $ 114,604      8.07 %

Total securities

      22,596      19,911      13.49 %     20,744      14,956      38.70 %

Total deposits

      166,352      153,834      8.14 %     145,790      133,486      9.22 %

Stockholders’ equity

      13,865      12,786      8.44 %     12,057      11,309      6.61 %

Total assets

      185,507      171,025      8.47 %     161,213      145,011      11.17 %

Shares Outstanding

      1,600,468      1,548,658      51,810       1,544,726      1,543,790      936  

Book value per share

      8.66      8.26      0.41       7.81      7.33    $ 0.48  

Daily averages:

   

Three
Months
Ending

Jun 30,

2005

   

Three
months
ending

Jun 30,

2004

    Change
    

Year

to

date

Jun 30,

2005

   

Year

to

date

Jun 30,

2004

    Change
  

Loans, net

    $ 145,035    $ 121,804      19.07 %   $ 142,817    $ 119,132      19.88 %

Total securities

      23,103      19,006      21.56 %     20,693      16,715      23.80 %

Total deposits

      163,576      142,535      14.76 %     159,801      138,807      15.12 %

Stockholders’ equity

      13,544      11,952      13.32 %     13,295      11,728      13.36 %

Interest earning assets

      171,991      148,956      15.46 %     167,664      144,263      16.22 %

Interest bearing liabilities

      144,386      127,990      12.81 %     141,480      124,293      13.83 %

Total Assets

      181,791      157,262      15.60 %     177,230      152,385      16.30 %

Financial Ratios:

   

Three

months

ending

Jun 30,

2005

    

Three

months

ending

Jun 30,

2004

     Change
    

Year

to

date

Jun 30,

2005

    

Year

to

date

Jun 30,

2004

     Change
  

Return on average assets

      0.94 %     1.12 %   (0.19 )     0.87 %     1.04 %   (0.16 )

Return on average equity

      12.56 %     14.73 %   (2.18 )     11.63 %     13.41 %   (1.78 )

Net Interest Margin

      4.72 %     4.41 %   0.31       4.73 %     4.49 %   0.24  

Efficiency ratio

      67.33 %     66.35 %   0.97       68.95 %     67.12 %   1.83  

Average Equity to average assets

      7.45 %     7.60 %   (0.15 )     7.50 %     7.70 %   (0.19 )

Allowance for loan losses:

   

Three

months

ending

Jun 30,

2005

    

Three

months

ending

Jun 30,

2005

     Changes
    

Year

to

date

Jun 30,

2005

    

Year

to

date

Jun 30,

2004

     Changes
  

Beginning balance

    $ 1,492     $ 1,507     -1.00 %   $ 1,419     $ 1,451     -2.21 %

Provision for losses

      199       54     268.52 %     374       131     185.50 %

Charge-offs

      (170 )     (31 )   448.39 %     (278 )     (94 )   195.74 %

Recoveries

      5       13     -61.54 %     11       55     -80.00 %

Ending balance

      1,526       1,543     -1.10 %     1,526       1,543     -1.10 %

Nonperforming assets:

   

Jun 30,

2005

    

Dec 31,

2004

     Change
    

Jun 30,

2004

    

Dec 31,

2003

     Change
  

Nonaccrual loans

      418       380     10.00 %     832       100     732.00 %

Restructured loans

      none       none     —         none       none     —    

Total nonperforming loans

      418       380     10.00 %     832       100     732.00 %

Other real estate owned

      618       85     —         none       none     —    

Total nonperforming assets

      1,036       465     122.80 %     832       100     732.00 %

Asset quality ratios:

   

Jun 30,

2005

    

Dec 31,

2004

     Change
    

Jun 30,

2004

    

Dec 31,

2003

     Change
  

Nonperforming loans to total loans

      0.27 %     0.27 %   0.01       0.66 %     0.09 %   0.58  

Allowance for loan losses to total loans

      1.00 %     1.00 %   (0.00 )     1.23 %     1.25 %   (0.02 )

Allowance for loan losses to nonperforming loans

      365.07 %     373.42 %   (8.35 )     185.46 %     1451.00 %   (1,265.54 )