JMBI James Monroe Bancorp (MM)

James Monroe Bancorp, Inc. (Nasdaq Capital Market:JMBI) today announced earnings and financial highlights for the year ended December 31, 2005. For the year ended December 31, 2005, the Company reported earnings of $4,217,000, an increase of 42% over the $2,970,000 earned in 2004. On a diluted per share basis, earnings per share for 2005 were $.72 for a 40% increase over 2004 earnings per share of $.51. Per share amounts have been adjusted to reflect the 5-for-4 stock split paid on December 28, 2005. Return on average assets was .86% in 2005 compared to .83% in 2004. Return on average equity was 11.04% in 2005 compared to 8.35% in 2004. The net interest margin improved over 2004 with a 3.79% net interest margin in 2005 compared to a 3.72% margin in 2004. Asset quality continues to be very strong. The Company had $37 thousand in charge offs in 2005 for a .01% charge off ratio compared to .07% the previous year. At the same time, nonperforming assets declined to $257 thousand or .07% of total loans. This is also down from the previous year which the Company reported $349 thousand in nonperforming loans or .14% of total loans. For the year ended December 31, 2005, James Monroe Bancorp, Inc. reported record growth in loans. The loan portfolio grew by $128.5 million which represents a 51% growth over the previous year end. Assets grew by 18% to $530 million and deposits grew by 17% to $471 million. For the fourth quarter ended December 31, 2005, James Monroe Bancorp, Inc. reported net income of $1,269,000, a 54% increase over fourth quarter 2004 earnings of $825,000. On a diluted per share basis, fourth quarter earnings per share were $.22 compared to the fourth quarter of 2004, of $.14 for an increase of 55%. As noted earlier, all per share amounts have been restated to reflect the 5-for-4 stock split payable December 28, 2005. John Maxwell, President and CEO, stated, "We are extremely pleased to report these strong results to our shareholders. Our earnings growth and our loan growth were exceptional this year. At the same time our loan quality remained strong as well. Charge offs were nominal and our nonperforming loans declined slightly. In October we raised an additional $8 million of capital through the issuance of an $8 million trust preferred offering. Our balance sheet and capital are well positioned for growth in 2006." David Pijor, Chairman of James Monroe Bancorp, Inc., stated, "We are pleased to report our strong year over year earnings and loan growth for 2005. James Monroe operates in a highly competitive banking market which makes continued growth and earnings performance a challenge. We continue to believe our strategy of hiring talented bankers who are knowledgeable in the needs of our customers and who are dedicated to serve our customers in a professional and responsive way is the key to our success." James Monroe Bank is a full-service community bank and a wholly owned subsidiary of James Monroe Bancorp, Inc. The Bank has seven offices located in Arlington, Annandale, Leesburg, Fairfax City, Chantilly and Manassas. The Bank also has a loan production office in Gaithersburg, Maryland and a residential mortgage lending division serving Northern Virginia and Maryland. 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 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) December 31, December 31, % (Dollars in thousands) 2005 2004 Change ------------ ------------ ------- Assets Cash and due from banks $19,960 $9,286 114.9% Interest bearing deposits in banks 24 2,442 (99.0)% Federal funds sold 5,968 35,754 (83.3)% Securities available for sale, at fair value 118,986 146,795 (18.9)% Loans held for sale 2,299 2,987 (23.0)% Loans, net of unearned income 378,491 249,996 51.4% Allowance for loan losses (3,920) (2,790) 40.5% ------------ ------------ Loans, net 374,571 247,206 51.5% Other assets 8,113 6,300 28.8% ------------ ------------ Total Assets $529,921 $450,770 17.6% ============ ============ Liabilities and Stockholders' Equity Deposits: Noninterest bearing deposits $106,831 $91,857 16.3% Interest bearing deposits 364,468 312,197 16.7% ------------ ------------ Total deposits 471,299 404,054 16.6% Federal funds purchased - - n.m. Federal Home Loan Bank advances - - n.m. Trust preferred capital notes 17,527 9,279 88.9% Other liabilities 1,450 536 170.5% ------------ ------------ Total liabilities 490,276 413,869 18.5% Total stockholders' equity 39,645 36,901 7.4% ------------ ------------ Total Liabilities and Stockholders' Equity $529,921 $450,770 17.6% ============ ============ Financial Highlights -------------------- James Monroe Bancorp, Inc. (Unaudited) Three Months Ended December 31, --------------------------------- (Dollars in thousands except share data) 2005 2004 % Change ----------- ----------- --------- RESULTS OF OPERATIONS: Total interest income $7,815 $5,333 46.5% Total interest expense 3,059 1,632 87.4% Net interest income 4,756 3,701 28.5% Provision for loan losses 154 224 -31.3% Gain on sale of securities - 5 n.m. Gain on sale of loans 188 175 7.4% Noninterest income - other 195 174 12.1% Noninterest expense 3,059 2,574 18.8% Income before taxes 1,926 1,257 53.2% Net income 1,269 825 53.8% PER SHARE DATA: Earnings per share, basic $0.23 $0.15 49.8% Earnings per share, diluted $0.22 $0.14 55.2% Weighted average shares outstanding - basic 5,573,060 5,551,175 0.4% - diluted 5,944,630 5,853,866 1.6% Book value per share (at period-end) $7.11 $6.64 7.1% Shares outstanding (at period-end) 5,574,710 5,556,530 0.3% PERFORMANCE RATIOS (annualized): Return on average assets 0.96% 0.76% Return on average equity 12.86% 8.93% Net interest margin 3.77% 3.57% Efficiency Ratio 59.53% 63.48% OTHER RATIOS: Allowance for loan losses to total loans 1.04% 1.12% Equity to assets 7.48% 8.19% Non-performing loans: Amount $257 $349 Percent of total loans 0.07% 0.14% Charged-off loans: Net amount $- $- Percent of average loans 0.00% 0.00% Risk-adjusted capital ratios: Leverage ratio 10.6% 10.7% Tier I 14.0% 16.2% Total 15.9% 17.1% AVERAGE BALANCES: Assets $522,812 $431,001 21.3% Earning assets 500,200 411,864 21.4% Loans 368,911 240,812 53.2% Deposits 438,143 383,961 14.1% Stockholders' equity 39,139 36,761 6.5% (Unaudited) Year Ended December 31, --------------------------------- (Dollars in thousands except share data) 2005 2004 % Change ----------- ----------- --------- RESULTS OF OPERATIONS: Total interest income $27,343 $17,462 56.6% Total interest expense 9,512 4,833 96.8% Net interest income 17,831 12,629 41.2% Provision for loan losses 1,167 990 17.9% Gain on sale of securities 13 59 -78.0% Gain on sale of loans 824 423 94.8% Noninterest income - other 790 693 14.0% Noninterest expense 11,883 8,287 43.4% Income before taxes 6,408 4,527 41.6% Net income 4,217 2,970 42.0% PER SHARE DATA: Earnings per share, basic $0.76 $0.54 41.4% Earnings per share, diluted $0.72 $0.51 39.7% Weighted average shares outstanding - basic 5,563,758 5,544,881 0.3% - diluted 5,897,085 5,843,964 0.9% Book value per share (at period-end) $7.11 $6.64 7.1% Shares outstanding (at period-end) 5,574,710 5,556,530 0.3% PERFORMANCE RATIOS (annualized): Return on average assets 0.86% 0.83% Return on average equity 11.04% 8.35% Net interest margin 3.79% 3.72% Efficiency Ratio 61.07% 60.03% OTHER RATIOS: Allowance for loan losses to total loans 1.04% 1.12% Equity to assets 7.48% 8.19% Non-performing loans: Amount $257 $349 Percent of total loans 0.07% 0.14% Charged-off loans: Net amount $37 $143 Percent of average loans 0.01% 0.07% Risk-adjusted capital ratios: Leverage ratio 10.6% 10.7% Tier I 14.0% 16.2% Total 15.9% 17.1% AVERAGE BALANCES: Assets $490,923 $359,495 36.6% Earning assets 470,179 339,679 38.4% Loans 323,702 208,441 55.3% Deposits 425,777 310,792 37.0% Stockholders' equity 38,199 35,576 7.4% *T