EX-99.1 2 rrd156807_19897.htm BANK OF THE JAMES FINANCIAL GROUP, INC. PRESS RELEASE DATED APRIL 20, 2007

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 1st Quarter 2007

Lynchburg, Va., April 20, 2007.........Bank of the James Financial Group, Inc. (OTCBB:BOJF) (the "Company") (quarterly consolidated results unaudited) reported today total net income after tax of $398,000 or $0.17 per basic share ($0.16 diluted) for the quarter ended March 31, 2007 compared to net income of $356,000 or $0.18 per basic share ($0.17 diluted) for the respective period a year ago.

We are pleased that same quarter net income increased by 11.8%. The slight decrease in earnings per basic and diluted share primarily resulted from the increase in additional shares outstanding as a result of the common stock offering which concluded at the end of December, 2006.

Robert R. Chapman III, the Company's President commented, "To see a double digit increase in our earnings from same quarter last year affirms our belief that Region 2000 continues to be an attractive banking market. We believe that we have an opportunity to increase our presence as long as we continue to provide exceptional customer service at Bank of the James, Bank of the James Mortgage, and BOTJ Investment Group. We believe this strategy will keep us on the path of achieving our long range strategic plan of becoming the pre-eminent financial institution in Region 2000."

Our net interest income increased as compared to the same period a year ago as a direct result of the growth of our balance sheet, specifically our interest-earning assets. Loans, net of unearned income and loan loss provision, increased from $187,469,000 as of December 31, 2006 to $196,549,000 as of March 31, 2007, an increase of $9,080,000 or 4.8%. Management expects that the additional equity raised in the recent capital offering, approximately $5,147,000, will allow the Bank, among other things, to continue to grow its loan portfolio.

The growth in loans was partially funded by a modest increase in deposits which grew from $201,789,000 as of December 31, 2006 to $203,729,000 as of $1,940,000 or 1.0%. The remaining loan growth was funded with federal funds purchased, overnight repurchase agreements or "sweep" accounts, as well as the additional equity capital mentioned above.

The result of the increase in loans and deposits was an increase in net interest income to $2,308,000 for the three month period ended March 31, 2007 from $2,134,000 as of the same period a year ago, which is an increase of $174,000 or 8.2%. This increase was partially offset by a decrease in the net interest margin to 4.23% for the period ended March 31, 2007 from 4.64% for the same period a year ago. The decrease in net interest margin is primarily attributable to maturing certificates of deposit repricing at higher rates.

Return on average assets and return on average equity in the first quarter 2007 was 0.69% and 7.33% respectively, as compared to 0.74% and 9.66% in the same period a year ago. The decrease in these ratios was expected due to the increase in equity capital as a result of the recent stock offering.

A significant portion of the increase in net income was the direct result of the increase in non interest income. Non interest income increased to $633,000 for the period ended March 31, 2007 from $449,000 for the same period a year ago, an increase of $184,000 or 41.0%. Non interest income is mainly comprised of fees generated through the origination of mortgage loans at Bank of the James Mortgage, a division of Bank of the James, and commissions on the sale of investment products through the Company's wholly-owned subsidiary, BOTJ Investment Group, Inc.

Bank of the James, a wholly owned subsidiary of Bank of the James Financial Group, Inc., currently operates seven full service locations as well as mortgage origination offices in Forest and Moneta, Virginia. 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 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"), a 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. and Subsidiaries

(000's) except ratios and percent data

unaudited

Selected Data:

Three months ending Mar 31, 2007

Three months ending Mar 31, 2006

Change

Year to date Mar 31, 2007

Year to date Mar 31, 2006

Change

Interest income

$4,093

$3,342

22.47%

$4,093

$3,342

22.47%

Interest expense

1,785

1,208

47.76%

1,785

1,208

47.76%

Net Interest income

2,308

2,134

8.15%

2,308

2,134

8.15%

Provision for loan losses

151

218

-30.73%

151

218

-30.73%

Noninterest income

633

449

40.98%

633

449

40.98%

Noninterest expense

2,186

1,813

20.57%

2,186

1,813

20.57%

Income taxes

206

196

5.10%

206

196

5.10%

Net income

398

356

11.80%

398

356

11.80%

Weighted Average Shares

Outstanding

2,310,884

2,002,993

15.37%

2,310,884

2,002,993

15.37%

Basic net income

per share

$0.17

$0.18

$(0.01)

$0.17

$0.18

$(0.01)

Fully diluted net income

per share

$0.16

$0.17

$(0.01)

$0.16

$0.17

$(0.01)

 

Balance Sheet at period end:

Mar 31, 2007

Dec 31, 2006

Change

Mar 31, 2006

Dec 31, 2005

Change

Loans, net

$196,549

$187,469

4.84%

$161,901

$155,480

4.13%

Total securities

24,685

26,192

-5.75%

23,604

23,919

-1.32%

Total deposits

203,729

201,789

0.96%

180,091

173,956

3.53%

Stockholders' equity

22,604

21,931

3.07%

14,965

14,675

1.98%

Total assets

236,588

232,709

1.67%

202,616

195,852

3.45%

Shares Outstanding

2,318,601

2,296,424

22,177

2,003,764

2,001,309

2,455

Book value per share

9.75

9.55

0.20

7.47

7.33

$0.14

 

 

Daily averages:

Three months ending Mar 31, 2007

Three months ending Mar 31, 2006

Change

Year to date Mar 31, 2007

Year to date Mar 31, 2006

Change

Loans, net

$192,939

$158,948

21.38%

$192,939

$158,948

21.38%

Total securities

26,043

24,602

5.86%

26,043

24,602

5.86%

Total deposits

200,074

173,000

15.65%

200,074

173,000

15.65%

Stockholders' equity

22,031

14,949

47.37%

22,031

14,949

47.37%

Interest earning assets

221,517

186,321

18.89%

221,517

186,321

18.89%

Interest bearing liabilities

180,246

155,677

15.78%

180,246

155,677

15.78%

Total Assets

233,794

195,994

19.29%

233,794

195,994

19.29%

 

Financial Ratios:

Three months ending Mar 31, 2007

Three months ending Mar 31, 2006

Change

Year to date Mar 31, 2007

Year to date Mar 31, 2006

Change

Return on average assets

0.69%

0.74%

(0.05)

0.69%

0.74%

(0.05)

Return on average equity

7.33%

9.66%

(2.33)

7.33%

9.66%

(2.33)

Net Interest Margin

4.23%

4.64%

(0.42)

4.23%

4.64%

(0.42)

Efficiency ratio

74.33%

70.19%

4.14

74.33%

70.19%

4.14

Average Equity to

average assets

9.42%

7.63%

1.80

9.42%

7.63%

1.80

 

Allowance for loan losses:

Three months ending Mar 31, 2007

Three months ending Mar 31, 2006

Change

Year to date Mar 31, 2007

Year to date Mar 31, 2006

Change

Beginning balance

$2,091

$1,777

17.67%

$2,091

$1,777

17.67%

Provision for losses

151

218

-30.73%

151

218

-30.73%

Charge-offs

(68)

(61)

11.48%

(68)

(61)

11.48%

Recoveries

5

31

-83.87%

5

31

-83.87%

Ending balance

2,179

1,965

10.89%

2,179

1,965

10.89%

 

 

Nonperforming assets:

Mar 31, 2007

Dec 31, 2006

Change

Mar 31, 2006

Dec 31, 2005

Change

Total nonperforming loans

1,026

646

58.82%

487

261

86.59%

Other real estate owned

536

535

0.19%

375

-

-

Total nonperforming assets

1,562

1,181

32.26%

862

261

230.27%

 

Asset quality ratios:

Mar 31, 2007

Dec 31, 2006

Change

Mar 31, 2006

Dec 31, 2005

Change

Nonperforming loans to

total loans

0.52%

0.34%

0.18

0.30%

0.17%

0.13

Allowance for loan losses

to total loans

1.10%

1.10%

(0.01)

1.20%

1.13%

0.07

Allowance for loan losses

to nonperforming loans

212.38%

323.68%

(111.31)

403.49%

680.84%

(277.35)