JMBI James Monroe Bancorp (MM)

James Monroe Bancorp, Inc. (Nasdaq Small Cap:JMBI) today announced earnings for the second quarter and first half of 2005. Second quarter net income was $970 thousand with $686 thousand for the second quarter of 2004, an increase of 41.4%. For the six-month comparative period, net income for 2005 was $1.74 million compared to $1.44 million for the first half of 2004, an increase of 20.7%. On a diluted basis, earnings per share for the second quarter of 2005 were $.21, compared to $.15 per share for the second quarter of 2004. For the six-month comparative period, the Company earned $.37 in 2005 as compared to $.31 in 2004. Total assets at June 30, 2005 were $534 million, a 48.9% increase over assets of $359 million at June 30, 2004 and an 18.5% increase over 2004 year-end assets of $451 million. Deposits at the end of June 2005 were $485 million, an increase of $171 million or 54.5% from a year ago. Loans totaled $334 million at June 30, 2005, up 63.0% over loans of $205 million at June 30 a year ago. Loans outstanding have grown $42 in the second quarter over the first quarter and $84 million in the first half of 2005. John R. Maxwell, President and CEO, stated "We are pleased with our performance for the first half of 2005. The growth in our loan portfolio through June 2005 has exceeded our loan growth for all of 2004. We have achieved this increase in loan production while maintaining a strong credit culture as shown by the decline in non-performing loans to .09% of total loans. Our asset quality remains strong, and we believe our allowance for loan losses to total loans ratio of 1.06% is adequate for our portfolio." David Pijor, Chairman, also commented "Exceeding $500 million in assets is a milestone for James Monroe Bancorp as we complete our seventh year of operation in June. In 2004, we began an aggressive plan of increasing our business development team and expanding our core operations. Our growth initiatives are now producing the results we expected, allowing us to continue our rapid expansion in the markets we serve." James Monroe Bank, a full-service community bank and a wholly owned subsidiary of James Monroe Bancorp, opened for business on June 8, 1998, at 3033 Wilson Boulevard in Arlington, Virginia. The Bank has offices 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 is 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. -0- *T Condensed Balance Sheet ----------------------- James Monroe Bancorp, Inc. (Unaudited) (Unaudited) June 30, June 30, % (Dollars in thousands) 2005 2004 Change ----------- ----------- ------- Assets Cash and due from banks $19,927 $23,604 (15.6)% Interest bearing deposits in banks 3,621 - n.m. Federal funds sold 36,951 42,129 (12.3)% Securities available for sale, at fair value 133,441 84,875 57.2% Loans held for sale 3,486 250 1294.4% Loans, net of unearned income 333,603 204,625 63.0% Allowance for loan losses (3,532) (2,305) 53.2% ----------- ----------- Loans, net 330,071 202,320 63.1% Other assets 6,764 5,570 21.4% ----------- ----------- Total Assets $534,261 $358,748 48.9% =========== =========== Liabilities and Stockholders' Equity Deposits: Noninterest bearing deposits $123,092 $93,427 31.8% Interest bearing deposits 362,363 220,794 64.1% ----------- ----------- Total deposits 485,455 314,221 54.5% Trust preferred capital notes 9,279 9,279 0.0% Other liabilities 1,142 703 62.4% ----------- ----------- Total liabilities 495,876 324,203 53.0% Total stockholders' equity 38,385 34,545 11.1% ----------- ----------- Total Liabilities and Stockholders' Equity $534,261 $358,748 48.9% =========== =========== Financial Highlights -------------------- James Monroe Bancorp, Inc. (Unaudited) Three Months Ended June 30, ------------------------------ (Dollars in thousands except share data) 2005 2004 % Change ---------- ---------- --------- RESULTS OF OPERATIONS: Total interest income $6,534 $3,880 68.4% Total interest expense 2,189 1,002 118.5% Net interest income 4,345 2,878 51.0% Provision for loan losses 345 194 77.8% Gain on sale of securities 10 14 -28.6% Gain on sale of loans 194 108 79.6% Noninterest income - other 199 187 6.4% Noninterest expense 2,929 1,941 50.9% Income before taxes 1,474 1,052 40.1% Net income 970 686 41.4% PER SHARE DATA: Earnings per share, basic $0.22 $0.15 45.3% Earnings per share, diluted $0.21 $0.15 37.9% Weighted average shares outstanding - basic 4,448,363 4,435,638 0.3% - diluted 4,687,227 4,676,515 0.2% Book value per share (at period-end) $8.62 $7.79 10.8% Shares outstanding (at period-end) 4,450,564 4,437,369 0.3% PERFORMANCE RATIOS (annualized): Return on average assets 0.80% 0.84% Return on average equity 10.37% 7.85% Net interest margin 3.75% 3.81% Efficiency Ratio 61.69% 60.90% OTHER RATIOS: Allowance for loan losses to total loans 1.06% 1.13% Equity to assets 7.18% 9.63% Non-performing loans: Amount $297 $365 Percent of total loans 0.09% 0.18% Charged-off loans: Net amount $35 $- Percent of average loans 0.01% 0.00% Risk-adjusted capital ratios: Leverage ratio 9.5% 13.6% Tier I 12.8% 19.4% Total 13.8% 20.4% AVERAGE BALANCES: Assets $487,311 $328,407 48.4% Earning assets 464,942 304,772 52.6% Loans 311,691 198,531 57.0% Deposits 424,152 279,574 51.7% Stockholders' equity 37,494 35,105 6.8% (Unaudited) Six Months Ended June 30, ------------------------------ (Dollars in thousands except share data) 2005 2004 % Change ---------- ---------- --------- RESULTS OF OPERATIONS: Total interest income $12,314 $7,703 59.9% Total interest expense 3,945 1,964 100.9% Net interest income 8,369 5,739 45.8% Provision for loan losses 779 493 58.0% Gain on sale of securities 18 54 -66.7% Gain on sale of loans 356 171 108.2% Noninterest income - other 361 365 -1.1% Noninterest expense 5,682 3,638 56.2% Income before taxes 2,643 2,198 20.2% Net income 1,738 1,440 20.7% PER SHARE DATA: Earnings per share, basic $0.39 $0.32 22.1% Earnings per share, diluted $0.37 $0.31 19.5% Weighted average shares outstanding - basic 4,446,816 4,432,540 0.3% - diluted 4,690,134 4,669,628 0.4% Book value per share (at period-end) $8.62 $7.79 10.8% Shares outstanding (at period-end) 4,450,564 4,437,369 0.3% PERFORMANCE RATIOS (annualized): Return on average assets 0.75% 0.91% Return on average equity 9.37% 8.27% Net interest margin 3.78% 3.85% Efficiency Ratio 62.41% 57.49% OTHER RATIOS: Allowance for loan losses to total loans 1.06% 1.13% Equity to assets 7.18% 9.63% Non-performing loans: Amount $297 $365 Percent of total loans 0.09% 0.18% Charged-off loans: Net amount $37 $143 Percent of average loans 0.01% 0.08% Risk-adjusted capital ratios: Leverage ratio 9.5% 13.6% Tier I 12.8% 19.4% Total 13.8% 20.4% AVERAGE BALANCES: Assets $466,709 $318,694 46.4% Earning assets 445,995 299,503 48.9% Loans 290,492 187,925 54.6% Deposits 410,204 267,978 53.1% Stockholders' equity 37,390 34,989 6.9% *T