As I understand it, 'yes' there are two parts. It strikes (1.) as a normal war hammer, and then (2.) with a minor bonus damage attack of one point per six levels or fraction thereof up to three points.
Caster Level : Normal Damage + Magical Bonus
1st - 6th : 1d4+1 (normal) +1 (magic)
7th - 12th : 1d4+1 (normal) +2 (magic)
13th and above : 1d4+1 (normal) +3 (magic)
THAC0 bonus is in line with the magical damage bonus.
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