Bank of the James Financial Group, Inc. Announces Results For 2nd Quarter 2005.LYNCHBURG Lynchburg, independent city (1990 pop. 66,049), in but administratively not a part of Campbell co., central Va., on the James River; settled 1757, inc. as a city 1852. It is a trade center and tobacco market in the foothills of the Blue Ridge Mts. , Va. -- Bank of the James James, person in the Bible James, in the Gospel of St. Luke, kinsman of St. Jude. The original does not specify the relationship. James, rivers, United States James. Financial Group, Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :BOJF BOJF Bank of the James Finl Group (Lynchburg, VA) ) (quarterly consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: results unaudited) reported today total net income after tax of $424,000 or $0.26 per basic share ($0.25 diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. ) for the quarter ended June June: see month. 30, 2005 and $767,000 or $0.49 per basic share ($0.46 diluted) year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current 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 January: see month. , 2004 and the 50% stock split effected in the form of a dividend paid by the company in March, 2005. Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. R. Chapman CHAPMAN. One whose business is to buy and sell goods or other things. 2 Bl. Com. 476. , III, the Bank's President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , 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 reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. compliance, particularly Sarbanes-Oxley Section 404. Several positive highlights for 2005 were identified despite the aforementioned a·fore·men·tioned adj. Mentioned previously. n. The one or ones mentioned previously. aforementioned Adjective mentioned before Adj. 1. increased expenses. Return on assets Return on assets (ROA) Indicator of profitability. Determined by dividing net income for the past 12 months by total average assets. Result is shown as a percentage. ROA can be decomposed into return on sales (net income/sales) multiplied by asset utilization (sales/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 December: see month. 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 Downtown (called a "city centre" in British English) is a term used in North America when referring to a city's core, usually both in a geographical and commercial / community sense. Lynchburg, Virginia Lynchburg is an independent city located in the Commonwealth of Virginia. As of the 2006 census, the city had a total population of 67,720, but is at about 70,000 residents as of 2007. ) and Madison Heights Madison Heights, city (1990 pop. 32,196), Oakland co., SE Mich., a suburb of Detroit; inc. 1955. With the decline of the regional auto industry, the city has become a technology center for companies from a number of industries. (Amherst County, Virginia Amherst County is a county located in the U.S. state — officially, "Commonwealth" — of Virginia. As of the 2000 census, the population was 31,894. Its county seat is Amherst6. History Amherst County was formed in 1761, from parts of Albemarle County. ) locations. Loans, net of unearned income Unearned Income Any income that comes from investments and other sources unrelated to employment services. Notes: Examples of unearned income include interest from a savings account, bond interest, tips, alimony, and dividends from stock. 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 attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to the large number of adjustable rate Adjustable rate Applies mainly to convertible securities. Refers to interest rate or dividend that is adjusted periodically, usually according to a standard market rate outside the control of the bank or savings institution, such as that prevailing on Treasury bonds or notes. loans in the loan portfolio, the interest rates on which have increased as the FOMC See Federal Open Market Committee. FOMC See Federal Open Market Committee (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 Origination The process through which a mortgage lender creates a mortgage secured by some amount of the mortgagor's real property. Notes: Also known as loan origination, everyone must go through the origination process when securing a mortgage for a piece of real 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 Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. 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 forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. This press release report contains statements that constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and 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 predecessor - parent of the Company) with the Federal Reserve Board.
Bank of the James Financial Group, Inc.
(000's) except ratios and percent data
unaudited
Three Three
months months
ending ending
Jun 30, Jun 30,
Selected Data: 2005 2004 Change
--------------------------------------------------------------------
Interest income $2,911 $2,229 30.60%
--------------------------------------------------------------------
Interest expense 889 592 50.17%
--------------------------------------------------------------------
Net Interest income 2,022 1,637 23.52%
--------------------------------------------------------------------
Provision for loan losses 199 54 268.52%
--------------------------------------------------------------------
Noninterest income 555 488 13.73%
--------------------------------------------------------------------
Noninterest expense 1,735 1,410 23.05%
--------------------------------------------------------------------
Income taxes 219 222 -1.35%
--------------------------------------------------------------------
Net income 424 439 -3.42%
--------------------------------------------------------------------
Weighted Average Shares
Outstanding 1,600,468 1,544,436 3.63%
--------------------------------------------------------------------
Basic net income
per share $0.26 $0.28 $(0.02)
--------------------------------------------------------------------
Fully diluted net income
per share $0.25 $0.27 $(0.02)
--------------------------------------------------------------------
Year Year
to to
date date
Jun 30, Jun 30,
Selected Data: 2005 2004 Change
--------------------------------------------------------------------
Interest income $5,581 $4,388 27.19%
--------------------------------------------------------------------
Interest expense 1,650 1,176 40.31%
--------------------------------------------------------------------
Net Interest income 3,931 3,212 22.38%
--------------------------------------------------------------------
Provision for loan losses 374 131 185.50%
--------------------------------------------------------------------
Noninterest income 1,016 778 30.59%
--------------------------------------------------------------------
Noninterest expense 3,411 2,678 27.37%
--------------------------------------------------------------------
Income taxes 395 401 -1.50%
--------------------------------------------------------------------
Net income 767 780 -1.67%
--------------------------------------------------------------------
Weighted Average Shares
Outstanding 1,579,900 1,524,104 3.66%
--------------------------------------------------------------------
Basic net income
per share $0.49 $0.51 $(0.02)
--------------------------------------------------------------------
Fully diluted net income
per share $0.46 $0.48 $(0.02)
--------------------------------------------------------------------
Balance Sheet at Jun 30, Dec 31,
period end: 2005 2004 Change
----------------------------------------------------------------------
Loans, net $151,115 $140,272 7.73%
----------------------------------------------------------------------
Total securities 22,596 19,911 13.49%
----------------------------------------------------------------------
Total deposits 166,352 153,834 8.14%
----------------------------------------------------------------------
Stockholders' equity 13,865 12,786 8.44%
----------------------------------------------------------------------
Total assets 185,507 171,025 8.47%
----------------------------------------------------------------------
Shares Outstanding 1,600,468 1,548,658 51,810
----------------------------------------------------------------------
Book value per share 8.66 8.26 0.41
----------------------------------------------------------------------
Balance Sheet at Jun 30, Dec 31,
period end: 2004 2003 Change
-----------------------------------------------------------------
Loans, net $123,854 $114,604 8.07%
-----------------------------------------------------------------
Total securities 20,744 14,956 38.70%
-----------------------------------------------------------------
Total deposits 145,790 133,486 9.22%
-----------------------------------------------------------------
Stockholders' equity 12,057 11,309 6.61%
-----------------------------------------------------------------
Total assets 161,213 145,011 11.17%
-----------------------------------------------------------------
Shares Outstanding 1,544,726 1,543,790 936
-----------------------------------------------------------------
Book value per share 7.81 7.33 $0.48
-----------------------------------------------------------------
Three Three
months months
ending ending
Jun 30, Jun 30,
Daily averages: 2005 2004 Change
----------------------------------------------------------------------
Loans, net $145,035 $121,804 19.07%
----------------------------------------------------------------------
Total securities 23,103 19,006 21.56%
----------------------------------------------------------------------
Total deposits 163,576 142,535 14.76%
----------------------------------------------------------------------
Stockholders' equity 13,544 11,952 13.32%
----------------------------------------------------------------------
Interest earning assets 171,991 148,956 15.46%
----------------------------------------------------------------------
Interest bearing liabilities 144,386 127,990 12.81%
----------------------------------------------------------------------
Total Assets 181,791 157,262 15.60%
----------------------------------------------------------------------
Year Year
to to
date date
Jun 30, Jun 30,
Daily averages: 2005 2004 Change
-----------------------------------------------------------------
Loans, net $142,817 $119,132 19.88%
-----------------------------------------------------------------
Total securities 20,693 16,715 23.80%
-----------------------------------------------------------------
Total deposits 159,801 138,807 15.12%
-----------------------------------------------------------------
Stockholders' equity 13,295 11,728 13.36%
-----------------------------------------------------------------
Interest earning assets 167,664 144,263 16.22%
-----------------------------------------------------------------
Interest bearing
liabilities 141,480 124,293 13.83%
-----------------------------------------------------------------
Total Assets 177,230 152,385 16.30%
-----------------------------------------------------------------
Three Three
months months
ending ending
Jun 30, Jun 30,
Financial Ratios: 2005 2004 Change
------------------------------------------------------------------
Return on average assets 0.94% 1.12% (0.19)
------------------------------------------------------------------
Return on average equity 12.56% 14.73% (2.18)
------------------------------------------------------------------
Net Interest Margin 4.72% 4.41% 0.31
------------------------------------------------------------------
Efficiency ratio 67.33% 66.35% 0.97
------------------------------------------------------------------
Average Equity to
average assets 7.45% 7.60% (0.15)
------------------------------------------------------------------
Year Year
to to
date date
Jun 30, Jun 30,
Financial Ratios: 2005 2004 Change
-----------------------------------------------------------------
Return on average assets 0.87% 1.04% (0.16)
-----------------------------------------------------------------
Return on average equity 11.63% 13.41% (1.78)
-----------------------------------------------------------------
Net Interest Margin 4.73% 4.49% 0.24
-----------------------------------------------------------------
Efficiency ratio 68.95% 67.12% 1.83
-----------------------------------------------------------------
Average Equity to
average assets 7.50% 7.70% (0.19)
-----------------------------------------------------------------
Three Three
months months
ending ending
Jun 30, Jun 30,
Allowance for loan losses: 2005 2004 Change
------------------------------------------------------------------
Beginning balance $1,492 $1,507 -1.00%
------------------------------------------------------------------
Provision for losses 199 54 268.52%
------------------------------------------------------------------
Charge-offs (170) (31) 448.39%
------------------------------------------------------------------
Recoveries 5 13 -61.54%
------------------------------------------------------------------
Ending balance 1,526 1,543 -1.10%
------------------------------------------------------------------
Year Year
to to
date date
Jun 30, Jun 30,
Allowance for loan losses: 2005 2004 Change
-----------------------------------------------------------------
Beginning balance $1,419 $1,451 -2.21%
-----------------------------------------------------------------
Provision for losses 374 131 185.50%
-----------------------------------------------------------------
Charge-offs (278) (94) 195.74%
-----------------------------------------------------------------
Recoveries 11 55 -80.00%
-----------------------------------------------------------------
Ending balance 1,526 1,543 -1.10%
-----------------------------------------------------------------
Jun 30, Dec 31,
Nonperforming assets: 2005 2004 Change
------------------------------------------------------------------
Nonaccrual loans 418 380 10.00%
------------------------------------------------------------------
Restructured loans none none -
------------------------------------------------------------------
Total nonperforming loans 418 380 10.00%
------------------------------------------------------------------
Other real estate owned 618 85 -
------------------------------------------------------------------
Total nonperforming assets 1,036 465 122.80%
------------------------------------------------------------------
Jun 30, Dec 31,
Nonperforming assets: 2004 2003 Change
-----------------------------------------------------------------
Nonaccrual loans 832 100 732.00%
-----------------------------------------------------------------
Restructured loans none none -
-----------------------------------------------------------------
Total nonperforming loans 832 100 732.00%
-----------------------------------------------------------------
Other real estate owned none none -
-----------------------------------------------------------------
Total nonperforming assets 832 100 732.00%
-----------------------------------------------------------------
Jun 30, Dec 31,
Asset quality ratios: 2005 2004 Change
------------------------------------------------------------------
Nonperforming loans to
total loans 0.27% 0.27% 0.01
------------------------------------------------------------------
Allowance for loan losses
to total loans 1.00% 1.00% (0.00)
------------------------------------------------------------------
Allowance for loan losses
to nonperforming loans 365.07% 373.42% (8.35)
------------------------------------------------------------------
Jun 30, Dec 31,
Asset quality ratios: 2004 2003 Change
-----------------------------------------------------------------
Nonperforming loans to
total loans 0.66% 0.09% 0.58
-----------------------------------------------------------------
Allowance for loan losses
to total loans 1.23% 1.25% (0.02)
-----------------------------------------------------------------
Allowance for loan losses
to nonperforming loans 185.46% 1451.00% (1,265.54)
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