James River Bankshares Reports First Quarter Earnings

Apr 17, 2001, 01:00 ET from James River Bankshares, Inc.

    SUFFOLK, Va., April 17 /PRNewswire/ -- James River Bankshares
 (Nasdaq:   JRBK) reported today that net income in the first quarter of 2001 was
 $1.374, or an increase of 9% over net income of $1.257 million in the first
 quarter of 2000.  Fully diluted earnings per share were $.30 in the first
 quarter of 2001 and $.27 in the first quarter of 2000.  Excluding the effects
 of discontinued operations, net income from continuing operations was $1.375
 million, or $.30 per fully diluted share in the first quarter of 2001 compared
 with $1.437 million, or $.31 per fully diluted share in the comparable period
 in 2000.  Discontinued operations includes after tax net losses of Mortgage
 Company of James River, Inc., a subsidiary that was closed in 2000.
     As the result of three 50 basis point decreases in interest rates in the
 first quarter of 2000, the Company's net interest income was relatively flat
 at $5.5 million compared with the first quarter of 2000.  Non-interest income
 rose strongly, increasing 23% to $931 thousand in the first quarter of 2001.
 However, a higher provision for loan losses and a 5% increase in non-interest
 expense to $4.4 million in the first quarter of 2001 offset the revenue gain.
     Credit quality measures were relatively strong in the first quarter of
 2001 although the Company continued to increase the provision for loan losses
 and net loan losses were higher during the period.  Net loan losses in the
 first quarter were .15% of average loans outstanding, which is well below the
 2000 average of .21% for the Company's national peer group.  In addition, the
 higher loan loss provision maintained the Company's allowance for loan losses
 at 1.42% of loans outstanding, which also compares favorably with peer ratios.
     Commenting on the Company's first quarter earnings performance, Harold U.
 Blythe, President and CEO of James River, stated, "The decreases in interest
 rates in the first quarter of 2001 erased a lot of the progress we had made in
 the Company's net interest margin in 2000.  Coming as rapidly as they did, the
 rate changes lowered yields on loans and other earning assets by more than
 reductions in the cost of deposits and other funds.  We were pleased, however,
 with the growth in non-interest income.  Moreover, in this somewhat
 questionable economy, we have focused on asset quality and those strategies
 that support and maintain such quality."
     In first quarter of 2001 the return on average assets was 1.06% compared
 to 1.04% in the first quarter of 2000. The return on average shareholders'
 equity increased to 9.85% in the first quarter of 2001 from 9.80% in the same
 quarter in 2000.  As the result of declining interest rates, the net interest
 margin decreased to 4.65% in the first quarter of 2001 compared with 4.99% in
 the comparable period in 2000.
 
     James River Bankshares is a multi-community financial holding company
 headquartered in Suffolk, Virginia.  On March 3, 2001, James River entered
 into a merger agreement with First Virginia Banks, Inc. (NYSE:   FVB).  Pending
 approval by regulatory authorities and James River's shareholders, the merger
 is expected to be completed in the third quarter of 2001.
     At March 31, 2001, James River's total assets were $531 million, 9% above
 the year earlier total of $488 million.  Loans at quarter-end totaled $367,
 which was 10% higher than the March 31, 2000 total of $335 million.  Deposits
 were $444 million on March 31, 2001, or 6% above the year earlier total of
 $417 million.  Shareholders' equity on March 31, 2001 was $57 million, or
 10.8% of total assets.  James River's four bank subsidiaries include James
 River Bank/Colonial, First Colonial Bank, James River Bank, and State Bank.
 The Company also owns two consumer finance subsidiaries, Family Finance
 Corporation and Family Finance of Virginia.
 
      This press release may contain "forward-looking statements," within the
 meaning of federal securities laws, that involve risks and uncertainties.
 Statements herein are based on certain assumptions and analyses by the company
 and other factors it believes are appropriate in the circumstances.  However,
 the company's expectations are subject to a number of risks and uncertainties
 and other factors that could cause actual results, events and developments to
 differ materially from those contemplated by any forward-looking statements
 herein.  Consequently, all forward-looking statements made herein are
 qualified by these cautionary statements and the cautionary language in the
 company's most recent Form 10-K report and other documents filed with the
 Securities and Exchange Commission.
 
 
                          JAMES RIVER BANKSHARES, INC.
                              FINANCIAL HIGHLIGHTS
 
                 (Dollars in thousands, except per share data)
 
     RESULTS OF OPERATIONS                  THREE MONTHS ENDED MARCH 31,
 
                                       2001             2000         % Change
 
     Interest Income                 $10,001          $9,191          8.81%
     Interest Expense                  4,499           3,720         20.94
        Net Interest Income            5,502           5,471          0.57
     Provision for Loan Losses           140              95         47.37
        Net Interest Income
         After Provision
         For Loan Losses               5,362           5,376         (0.26)
     Non-Interest Income                 931             758         22.82
     Non-Interest Expense              4,369           4,170          4.77
        Income Before Income Taxes and
         Discontinued Operations       1,924           1,964         (2.04)
     Income Taxes                        549             527          4.17
        Income from Continuing
         Operations                    1,375           1,437         (4.31)
     Loss from Discontinued
      Operations                          (1)           (180)       (99.44)
        Net Income                    $1,374          $1,257          9.31%
 
     Net Income Per Common Share:
        Basic from Continuing
         Operations                    $0.30           $0.31         (3.23)%
        Basic from Discontinued
         Operations                     --             (0.04)       100.00
           Basic Earnings Per
            Common Share              $ 0.30          $ 0.27         11.11%
 
        Diluted from Continuing
         Operations                    $0.30           $0.31         (3.23)%
        Diluted from Discontinued
         Operations                     --             (0.04)        100.00
           Diluted Earnings Per
            Common Share               $0.30           $0.27         11.11%
 
     Return on Average Assets          1.06%           1.04%
     Return on Average Equity          9.85%           9.80%
     Net Interest Margin               4.65%           4.99%
 
 
     FINANCIAL CONDITION
 
     Average Balances
        Assets                      $518,575        $484,743          6.98%
        Loans                        366,202         334,195          9.58
        Securities                   110,659         115,559         (4.24)
        Earning Assets               488,594         453,541          7.73
        Deposits                     433,785         414,413          4.67
        Shareholders' Equity          55,792          51,304          8.75
        Average Shares Outstanding:
           Basic                       4,557           4,613         (1.21)
           Diluted                     4,597           4,619         (0.48)
 
 
                                                     MARCH 31,
 
                                      2001             2000          % Change
     Period-End Balances
        Assets                      $531,135        $487,541          8.94%
        Loans                        367,308         334,880          9.68
        Securities                   114,049         115,392         (1.16)
        Earning Assets               500,995         455,555          9.97
        Deposits                     443,590         417,334          6.29
        Shareholders' Equity          57,193          51,386         11.30
        Common Shares Outstanding      4,559           4,610         (1.11)
        Allowance for Loan Losses      5,204           4,857          7.14
        Allowance for Loan
        Losses to Loans                1.42%           1.45%
 
 

SOURCE James River Bankshares, Inc.
    SUFFOLK, Va., April 17 /PRNewswire/ -- James River Bankshares
 (Nasdaq:   JRBK) reported today that net income in the first quarter of 2001 was
 $1.374, or an increase of 9% over net income of $1.257 million in the first
 quarter of 2000.  Fully diluted earnings per share were $.30 in the first
 quarter of 2001 and $.27 in the first quarter of 2000.  Excluding the effects
 of discontinued operations, net income from continuing operations was $1.375
 million, or $.30 per fully diluted share in the first quarter of 2001 compared
 with $1.437 million, or $.31 per fully diluted share in the comparable period
 in 2000.  Discontinued operations includes after tax net losses of Mortgage
 Company of James River, Inc., a subsidiary that was closed in 2000.
     As the result of three 50 basis point decreases in interest rates in the
 first quarter of 2000, the Company's net interest income was relatively flat
 at $5.5 million compared with the first quarter of 2000.  Non-interest income
 rose strongly, increasing 23% to $931 thousand in the first quarter of 2001.
 However, a higher provision for loan losses and a 5% increase in non-interest
 expense to $4.4 million in the first quarter of 2001 offset the revenue gain.
     Credit quality measures were relatively strong in the first quarter of
 2001 although the Company continued to increase the provision for loan losses
 and net loan losses were higher during the period.  Net loan losses in the
 first quarter were .15% of average loans outstanding, which is well below the
 2000 average of .21% for the Company's national peer group.  In addition, the
 higher loan loss provision maintained the Company's allowance for loan losses
 at 1.42% of loans outstanding, which also compares favorably with peer ratios.
     Commenting on the Company's first quarter earnings performance, Harold U.
 Blythe, President and CEO of James River, stated, "The decreases in interest
 rates in the first quarter of 2001 erased a lot of the progress we had made in
 the Company's net interest margin in 2000.  Coming as rapidly as they did, the
 rate changes lowered yields on loans and other earning assets by more than
 reductions in the cost of deposits and other funds.  We were pleased, however,
 with the growth in non-interest income.  Moreover, in this somewhat
 questionable economy, we have focused on asset quality and those strategies
 that support and maintain such quality."
     In first quarter of 2001 the return on average assets was 1.06% compared
 to 1.04% in the first quarter of 2000. The return on average shareholders'
 equity increased to 9.85% in the first quarter of 2001 from 9.80% in the same
 quarter in 2000.  As the result of declining interest rates, the net interest
 margin decreased to 4.65% in the first quarter of 2001 compared with 4.99% in
 the comparable period in 2000.
 
     James River Bankshares is a multi-community financial holding company
 headquartered in Suffolk, Virginia.  On March 3, 2001, James River entered
 into a merger agreement with First Virginia Banks, Inc. (NYSE:   FVB).  Pending
 approval by regulatory authorities and James River's shareholders, the merger
 is expected to be completed in the third quarter of 2001.
     At March 31, 2001, James River's total assets were $531 million, 9% above
 the year earlier total of $488 million.  Loans at quarter-end totaled $367,
 which was 10% higher than the March 31, 2000 total of $335 million.  Deposits
 were $444 million on March 31, 2001, or 6% above the year earlier total of
 $417 million.  Shareholders' equity on March 31, 2001 was $57 million, or
 10.8% of total assets.  James River's four bank subsidiaries include James
 River Bank/Colonial, First Colonial Bank, James River Bank, and State Bank.
 The Company also owns two consumer finance subsidiaries, Family Finance
 Corporation and Family Finance of Virginia.
 
      This press release may contain "forward-looking statements," within the
 meaning of federal securities laws, that involve risks and uncertainties.
 Statements herein are based on certain assumptions and analyses by the company
 and other factors it believes are appropriate in the circumstances.  However,
 the company's expectations are subject to a number of risks and uncertainties
 and other factors that could cause actual results, events and developments to
 differ materially from those contemplated by any forward-looking statements
 herein.  Consequently, all forward-looking statements made herein are
 qualified by these cautionary statements and the cautionary language in the
 company's most recent Form 10-K report and other documents filed with the
 Securities and Exchange Commission.
 
 
                          JAMES RIVER BANKSHARES, INC.
                              FINANCIAL HIGHLIGHTS
 
                 (Dollars in thousands, except per share data)
 
     RESULTS OF OPERATIONS                  THREE MONTHS ENDED MARCH 31,
 
                                       2001             2000         % Change
 
     Interest Income                 $10,001          $9,191          8.81%
     Interest Expense                  4,499           3,720         20.94
        Net Interest Income            5,502           5,471          0.57
     Provision for Loan Losses           140              95         47.37
        Net Interest Income
         After Provision
         For Loan Losses               5,362           5,376         (0.26)
     Non-Interest Income                 931             758         22.82
     Non-Interest Expense              4,369           4,170          4.77
        Income Before Income Taxes and
         Discontinued Operations       1,924           1,964         (2.04)
     Income Taxes                        549             527          4.17
        Income from Continuing
         Operations                    1,375           1,437         (4.31)
     Loss from Discontinued
      Operations                          (1)           (180)       (99.44)
        Net Income                    $1,374          $1,257          9.31%
 
     Net Income Per Common Share:
        Basic from Continuing
         Operations                    $0.30           $0.31         (3.23)%
        Basic from Discontinued
         Operations                     --             (0.04)       100.00
           Basic Earnings Per
            Common Share              $ 0.30          $ 0.27         11.11%
 
        Diluted from Continuing
         Operations                    $0.30           $0.31         (3.23)%
        Diluted from Discontinued
         Operations                     --             (0.04)        100.00
           Diluted Earnings Per
            Common Share               $0.30           $0.27         11.11%
 
     Return on Average Assets          1.06%           1.04%
     Return on Average Equity          9.85%           9.80%
     Net Interest Margin               4.65%           4.99%
 
 
     FINANCIAL CONDITION
 
     Average Balances
        Assets                      $518,575        $484,743          6.98%
        Loans                        366,202         334,195          9.58
        Securities                   110,659         115,559         (4.24)
        Earning Assets               488,594         453,541          7.73
        Deposits                     433,785         414,413          4.67
        Shareholders' Equity          55,792          51,304          8.75
        Average Shares Outstanding:
           Basic                       4,557           4,613         (1.21)
           Diluted                     4,597           4,619         (0.48)
 
 
                                                     MARCH 31,
 
                                      2001             2000          % Change
     Period-End Balances
        Assets                      $531,135        $487,541          8.94%
        Loans                        367,308         334,880          9.68
        Securities                   114,049         115,392         (1.16)
        Earning Assets               500,995         455,555          9.97
        Deposits                     443,590         417,334          6.29
        Shareholders' Equity          57,193          51,386         11.30
        Common Shares Outstanding      4,559           4,610         (1.11)
        Allowance for Loan Losses      5,204           4,857          7.14
        Allowance for Loan
        Losses to Loans                1.42%           1.45%
 
 SOURCE  James River Bankshares, Inc.