Impressive Growth, Record Earnings and Pristine Asset Quality Continue

Rhea-AI Summary

John Marshall Bancorp, Inc. (OTCQB: JMSB) reported a record net income of $7.7 million ($0.55 per diluted share) for Q1 2022, up 51.2% from Q1 2021. This marks the thirteenth consecutive quarter of record earnings. A special cash dividend of $0.20 per share was declared, payable on May 24, 2022. Total assets increased by 11.9% to $2.25 billion, while total deposits grew 12.6%. The annualized Return on Average Assets was 1.40% and Return on Average Equity was 14.76%. The Company remains well-capitalized with no non-performing loans.

Positive

• Net income increased by $2.6 million or 51.2% year-over-year.
• Total assets grew 11.9% to $2.25 billion.
• Special cash dividend of $0.20 declared on outstanding shares.
• Annualized Return on Average Assets at 1.40% and Return on Average Equity at 14.76%.
• No non-performing loans reported for the tenth consecutive quarter.

Negative

• Non-interest income decreased 10.8% compared to the prior year.
• Efficiency ratio increased modestly to 47.9% from 47.1% year-over-year.

RESTON, Va.--(BUSINESS WIRE)-- John Marshall Bancorp, Inc. (OTCQB: JMSB) (the “Company”), parent company of John Marshall Bank (the “Bank”), reported net income of $7.7 million ($0.55 per diluted common share) for the quarter ended March 31, 2022.

Selected Highlights

• One-time Special Cash Dividend – On March 16, 2022, the Company declared a one-time, special cash dividend of $0.20 per outstanding share of common stock to be paid on May 24, 2022 to shareholders of record as of May 10, 2022.
• Thirteenth Consecutive Quarter of Record Earnings – The Company reported record net income of $7.7 million for the first quarter of 2022, a $2.6 million or 51.2% increase over the $5.1 million reported for the first quarter of 2021. Earnings per diluted share for the three months ended March 31, 2022 were $0.55, a 48.6% increase over the $0.37 reported for the three months ended March 31, 2021.
• Robust Returns – Annualized Return on Average Assets (“ROAA”) was 1.40% and Return on Average Equity (“ROAE”) was 14.76% for the three months ended March 31, 2022. ROAA and ROAE were 1.05% and 10.89%, respectively, for the three months ended March 31, 2021. Excluding 2010, when the Company realized a significant, non-recurring income tax benefit from the removal of the valuation allowance on its deferred tax assets in Q2 of that year, the ROAE represents a Company record.
• Strong Growth – Year-over-year total assets increased 11.9% or $239.6 million to $2.25 billion at March 31, 2022. Excluding Paycheck Protection Program (“PPP”) loans, gross loans net of unearned income grew $132.8 million or 8.9% from March 31, 2021 to March 31, 2022. Total deposits grew $221.7 million or 12.6% from March 31, 2021 to March 31, 2022. Non-interest bearing demand deposits grew $76.0 million or 18.1% from March 31, 2021 to March 31, 2022.
• Strong Operating Revenues – Revenues, defined as the sum of net interest income and non-interest income, increased 9.5% or $1.6 million to $18.3 million in the first quarter of 2022 as compared to $16.7 million for the first quarter of 2021.
• Cost Consciousness – The Company actively manages expenses while investing for future growth. The efficiency ratio for the first quarter of 2022 was 47.9% compared to 47.1% for the first quarter of 2021. The ratio of annualized non-interest expense to average assets was 1.61% for the first quarter of 2022 and 1.64% for the first quarter of 2021.
• Well-Capitalized, Liquid Balance Sheet – At March 31, 2022, the equity to assets ratio of the Bank was 10.2% and interest bearing cash and investment securities represented 26.1% of earning assets. We believe our loan pipeline to be strong and that we are well-positioned to redeploy this liquidity into higher yielding earning assets.
• Asset Quality Remains Pristine – For the tenth consecutive quarter, the Company had no non-performing loans, no loans 30 days or more past due, and no other real estate owned assets at March 31, 2022. The Company believes its allowance for loan losses is appropriate for the inherent risks and uncertainties associated with the portfolio.

Chris Bergstrom, President and Chief Executive Officer, commented, “We are proud to have achieved 13 consecutive quarters of record earnings leading to our first cash dividend in the Company’s history. However, we are not resting on our laurels. The outlook for our loan pipeline remains very good and our balance sheet liquidity and capitalization are primed to support future growth. As we have done in the past, we will continue to invest in personnel who we believe will augment our growth and earnings; stay vigilant on credit; and actively manage our expenses. We believe this model, in conjunction with the anticipated registration of our shares with the Securities and Exchange Commission and contemplated listing on the Nasdaq Capital Market will continue to create value for John Marshall Bancorp, Inc. shareholders.”

Balance Sheet and Credit Quality

Total assets were $2.25 billion at March 31, 2022, $2.15 billion at December 31, 2021 and $2.01 billion at March 31, 2021. Asset growth from March 31, 2021 to March 31, 2022 was $239.6 million or 11.9%. During the first quarter of 2022, assets increased $100.3 million or 18.9% annualized. Asset growth was primarily comprised of loans and securities available for sale.

Total loans, net of unearned income, increased by 1.6% to $1.63 billion at March 31, 2022, compared to $1.61 billion at March 31, 2021. Excluding PPP loans, total loans, net of unearned income, at March 31, 2022 grew 8.9% to $1.62 billion as compared to $1.49 billion at March 31, 2021. The year-over-year increase in the loan portfolio is primarily attributable to growth in the residential mortgage, investor real estate, and commercial owner-occupied real estate loan portfolios of $74.4 million, $50.2 million, and $32.0 million, respectively. At March 31, 2022, PPP loans totaled $7.8 million with $187 thousand of net deferred fees remaining to be realized.

Total loans, net of unearned income, decreased $35.2 million from $1.67 billion at December 31, 2022. Excluding PPP loans, total loans, net of unearned income, increased $24.9 million quarter-over-quarter primarily due to increases of $31.1 million and $13.8 million in the investor real estate and residential mortgage portfolios, respectively.

The Company’s portfolio of investments in fixed income securities was $402.3 million at March 31, 2022, $344.8 million at December 31, 2021, and $212.6 million at March 31, 2021. The increase in the fixed income securities portfolio was primarily driven by redeployment of PPP loan payoffs and deposit growth. All but $15.5 million of the fixed income portfolio is backed by the explicit or implicit guarantees of the United States Federal Government or one of its agencies.

Total deposits were $1.98 billion at March 31, 2022, $1.88 billion at December 31, 2021 and $1.76 billion at March 31, 2021. Deposit growth was 12.6% during the past twelve months, as saving deposits grew 58.7%, interest-bearing demand deposits grew 28.8% and non-interest bearing deposits grew 18.1%. Deposit growth was 5.4% during the past three months as interest-bearing demand deposits grew 19.9% and savings deposits grew 12.2%.

Shareholders’ equity was $204.9 million at March 31, 2022, an increase of $15.9 million or 8.4% from March 31, 2021. This increase year-over-year was due to net income of $28.1 million and the exercise of stock options totaling $2.8 million, partially offset by reductions in accumulated other comprehensive income of $12.2 million and dividends payable of $2.8 million. Tangible book value per share was $14.68 as of March 31, 2022 compared to $13.85 as of March 31, 2021. The change in tangible book value per share year-over-year was due to earnings, partially offset by increases in unrealized losses on our available-for-sale investment portfolio as a result of rising interest rates, shareholder option exercises, restricted share award issuances, and dividends payable. The Bank’s capital ratios remain well above regulatory thresholds for well-capitalized banks. As of March 31, 2022, the Bank’s total risk-based capital ratio was 15.4%, compared to 14.6% at March 31, 2021.

The Company recorded net charge-offs of $1 thousand for the first quarter of 2022, as compared to no net charge-offs in the fourth quarter of 2021 and $1 thousand during the first quarter of 2021. As of March 31, 2022, the Company had no non-accrual loans, no loans 30 days or more past due and no other real estate owned assets.

At March 31, 2022, the allowance for loan losses was $20.0 million or 1.23% of outstanding loans, net of unearned income, compared to $20.0 million or 1.20% of outstanding loans, net of unearned income, at December 31, 2021. Excluding PPP loans, the allowance for loan losses to outstanding loans, net of unearned income, decreased from 1.25% at December 31, 2021 to 1.23% at March 31, 2022. The Company does not have a reserve on PPP loan balances, as they are 100% guaranteed by the U.S. Small Business Administration. The decrease in the allowance to outstanding loans, net of unearned income, was primarily due to a decrease in the uncertainty of the COVID-19 pandemic’s estimated impact on the Company’s loan portfolio, which was partially offset by the estimated impact of rising inflation and the impact on the global economy due to the war in Ukraine.

Quarterly Results

Net income for the first quarter of 2022 increased $2.6 million or 51.2% to $7.7 million compared to $5.1 million for the first quarter of 2021 and net income increased $127 thousand or 1.7% compared to $7.6 million for the fourth quarter of 2021. The results for the current quarter reflect a combination of the impact of an increase in net interest income and decreased provision for loan loss expense, partially offset by growth in non-interest expense.

Net interest income for the first quarter of 2022 increased $1.6 million or 10.0% compared to the first quarter of 2021, driven primarily by growth in the Company’s loan and investment portfolios. The annualized net interest margin for the first quarter of 2022 was 3.33% as compared to 3.43% for the same quarter of the prior year. The yield on interest earning assets for the first quarter of 2022 was 3.67% compared to 3.95% for the same quarter of the prior year. The year-over-year decrease in net interest margin and yield on interest earning assets was primarily due to a lower yield on fixed rate investments purchased between the first quarter of 2021 and the first quarter of 2022. The cost of interest-bearing liabilities was 0.49% for the first quarter of 2022 compared to 0.74% for the same quarter of the prior year. The decrease in the cost of interest-bearing liabilities was primarily due to a 27 basis point reduction in the cost of interest-bearing deposits as a result of the repricing of the Company’s time deposits, partially offset by the accelerated amortization of $104 thousand in deferred issuance costs associated with our subordinated debt. Subject to market conditions, the Company intends to refinance its subordinated debt when it becomes callable in July 2022.

The Company did not record a provision for loan losses for the first quarter of 2022, compared to a $2.4 million provision for the first quarter of 2021. The decrease in the provision for loan losses as compared to the same period in 2021 primarily reflects changes in the Company’s evaluation of environmental factors impacting the Company’s loan portfolio during 2022. During 2021, the environmental or qualitative factor allocations within the allowance for loan losses were adjusted to account for the risks to certain industry subgroups and portfolio segments within our portfolio as a result of the continuing COVID-19 pandemic. The decrease in the provision for loan losses primarily reflects an estimated decrease in uncertainty as it relates to the estimated impact of the COVID-19 pandemic on the Company’s loan portfolio and the broader economy.

Non-interest income decreased $50 thousand or 10.8% during the current quarter compared to the same quarter of the prior year. The decrease in non-interest income was primarily due to a $150 thousand decrease in the mark-to-market adjustment on the investments in the Company’s nonqualified deferred compensation plans. During the first quarter of 2021, the Company realized a $10 thousand gain on the sale of certain investment securities. Excluding the impacts of the mark-to-market adjustments and gain on sales, non-interest income increased $111 thousand or 26.4% primarily due to increases in insurance commissions paid to the Company.

Non-interest expense increased $893 thousand or 11.3% during the current quarter compared to the same quarter of the prior year. The increase in non-interest expense was primarily due to an increase in salaries and employee benefits of $1.0 million or 20.8% driven by an increase in accrued incentive compensation tied to the Company’s performance. Incentive compensation accruals can fluctuate materially from quarter to quarter, based upon the Company’s financial performance and conditions measured against, among other evaluation criteria, our strategic plan and budget. At the end of each year, the ultimate determination of the incentive compensation is approved by the Board of Directors. The increase in non-interest expense was partially offset by a decrease in other operating expenses of $134 thousand or 6.5% primarily driven by lower FDIC insurance premiums and marketing expense.

For the three months ended March 31, 2022, annualized non-interest expense to average assets was 1.61% compared to 1.64% for the three months ended March 31, 2021. The decrease was primarily due to the renegotiation of certain vendor contracts coupled with the continued disciplined overhead management.

For the three months ended March 31, 2022, the annualized efficiency ratio was 47.9% compared to 47.1% for the three months ended March 31, 2021. The modest increase was primarily due to the increase in salaries and employee benefits.

About John Marshall Bancorp, Inc.

John Marshall Bancorp, Inc. is the bank holding company for John Marshall Bank. The Bank is a $2.25 billion bank headquartered in Reston, Virginia with eight full-service branches located in Alexandria, Arlington, Loudoun, Prince William, Reston, and Tysons, Virginia, as well as Rockville, Maryland, and Washington, D.C. with one loan production office in Arlington, Virginia. The Bank is dedicated to providing exceptional value, personalized service and convenience to local businesses and professionals in the Washington D.C. Metro area. The Bank offers a comprehensive line of sophisticated banking products and services that rival those of the largest banks along with experienced staff to help achieve customers’ financial goals. Dedicated Relationship Managers serve as direct points-of-contact, providing subject matter expertise in a variety of niche industries including Charter and Private Schools, Government Contractors, Health Services, Nonprofits and Associations, Professional Services, Property Management Companies, and Title Companies. Learn more at www.johnmarshallbank.com.

In addition to historical information, this press release contains forward-looking statements that are based on certain assumptions and describe future plans, strategies and expectations of the Company. These forward-looking statements are generally identified by use of the words “believe,” “expect,” “intend,” “anticipate,” “estimate,” “project,” “will,” “should,” “may,” “view,” “opportunity,” “potential,” or similar expressions or expressions of confidence. The Company’s ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on the operations of the Company and its subsidiary include, but are not limited to the following: changes in interest rates, general economic conditions, public health crises (such as the governmental, social and economic effects of COVID-19), levels of unemployment in the Bank’s lending area, real estate market values in the Bank’s lending area, future natural disasters, the level of prepayments on loans and mortgage-backed securities, legislative/regulatory changes, monetary and fiscal policies of the U.S. Government including policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System, the quality or composition of the loan or investment portfolios, demand for loan products, deposit flows, competition, demand for financial services in the Company’s market area, accounting principles and guidelines, and other conditions which by their nature are not susceptible to accurate forecast, and are subject to significant uncertainty. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. The Company does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions which may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events. Annualized, pro forma, projected and estimated numbers are used for illustrative purpose only, are not forecasts and may not reflect actual results.

John Marshall Bancorp, Inc.
Financial Highlights (Unaudited)
(Dollar amounts in thousands, except per share data)
	At or For the Three Months Ended
	March 31,
	2022					2021
Selected Balance Sheet Data
Cash and cash equivalents	$	182,361				$	161,397
Total investment securities		409,692					219,106
Loans, net of unearned income		1,631,260					1,605,783
Allowance for loan losses		20,031					19,381
Total assets		2,249,609					2,009,988
Non-interest bearing demand deposits		495,811					419,796
Interest bearing deposits		1,487,288					1,341,594
Total deposits		1,983,099					1,761,390
Shareholders' equity		204,855					188,904
Summary Results of Operations
Interest income	$	19,745				$	18,747
Interest expense		1,829					2,465
Net interest income		17,916					16,282
Provision for loan losses		- -					2,365
Net interest income after provision for loan losses		17,916					13,917
Non-interest income		414					464
Non-interest expense		8,786					7,893
Income before income taxes		9,544					6,488
Net income		7,674					5,074
Per Share Data and Shares Outstanding
Earnings per share - basic	$	0.55				$	0.37
Earnings per share - diluted	$	0.55				$	0.37
Tangible book value per share	$	14.68				$	13.85
Weighted average common shares (basic)		13,783,034					13,557,779
Weighted average common shares (diluted)		13,991,692					13,809,751
Common shares outstanding at end of period		13,950,570					13,634,754
Performance Ratios
Return on average assets (annualized)		1.40	%				1.05	%
Return on average equity (annualized)		14.76	%				10.89	%
Net interest margin		3.33	%				3.43	%
Non-interest income as a percentage of average assets (annualized)		0.08	%				0.10	%
Non-interest expense to average assets (annualized)		1.61	%				1.64	%
Efficiency ratio		47.9	%				47.1	%
Asset Quality
Non-performing assets to total assets		0.00	%				0.00	%
Non-performing loans to total loans		0.00	%				0.00	%
Allowance for loan losses to non-performing loans		N/M					N/M
Allowance for loan losses to total loans (1)		1.23	%				1.21	%
Net charge-offs (recoveries) to average loans (annualized)		0.00	%				0.00	%
Loans 30-89 days past due and accruing interest	$	- -				$	- -
Non-accrual loans		- -					- -
Other real estate owned		- -					- -
Non-performing assets (2)		- -					- -
Troubled debt restructurings (total)		542					589
Performing in accordance with modified terms		542					589
Not performing in accordance with modified terms		- -					- -
Capital Ratios (Bank Level)
Tangible equity / tangible assets		10.2	%				10.5	%
Total risk-based capital ratio		15.4	%				14.6	%
Tier 1 risk-based capital ratio		14.2	%				13.4	%
Leverage ratio		10.8	%				10.8	%
Common equity tier 1 ratio		14.2	%				13.4	%
Other Information
Number of full time equivalent employees		141					143
# Full service branch offices		8					8
# Loan production or limited service branch offices		1					1

(1) The allowance for loan losses to total loans, excluding PPP loans, net of unearned income, of $7.6 million, was 1.23% at March 31 2022. The allowance for loan losses to total loans, excluding PPP loans, net of unearned income, of $115.0 million, was 1.30% at March 31, 2021. PPP loans received no allocations in the allowance estimate due to the underlying guarantees.

(2) Non-performing assets consist of non-accrual loans, loans 90 days or more past due and still accruing interest, and other real estate owned. Does not include troubled debt restructurings which were accruing interest at the date indicated.

John Marshall Bancorp, Inc.
Consolidated Balance Sheets
(Dollar amounts in thousands, except per share data)
														% Change
		March 31,				December 31,				March 31,				Last Three			Year Over
			2022				2021				2021			Months			Year
Assets		(Unaudited)				(Unaudited)				(Unaudited)
Cash and due from banks		$	6,189			$	2,920			$	6,868			112.0	%		-9.9	%
Interest-bearing deposits in banks			176,172				102,879				154,529			71.2	%		14.0	%
Securities available-for-sale, at fair value			298,103				239,300				212,562			24.6	%		40.2	%
Securities held-to-maturity, fair value of $102,988 and $103,258 at 3/31/2022 and 12/31/2022, respectively.			104,177				105,509				- -			-1.3	%		N/M
Restricted securities, at cost			5,088				4,951				5,089			2.8	%		0.0	%
Equity securities, at fair value			2,324				1,869				1,455			24.3	%		59.7	%
Loans, net of unearned income			1,631,260				1,666,469				1,605,783			-2.1	%		1.6	%
Allowance for loan losses			(20,031	)			(20,032	)			(19,381	)		0.0	%		3.4	%
Net loans			1,611,229				1,646,437				1,586,402			-2.1	%		1.6	%
Bank premises and equipment, net			1,532				1,620				1,990			-5.4	%		-23.0	%
Accrued interest receivable			4,354				4,943				4,818			-11.9	%		-9.6	%
Bank owned life insurance			21,093				20,998				20,694			0.5	%		1.9	%
Right of use assets			4,567				4,913				5,611			-7.0	%		-18.6	%
Other assets			14,781				12,970				9,970			14.0	%		48.3	%
Total assets		$	2,249,609			$	2,149,309			$	2,009,988			4.7	%		11.9	%
Liabilities and Shareholders' Equity
Liabilities
Deposits:
Non-interest bearing demand deposits		$	495,811			$	488,838			$	419,796			1.4	%		18.1	%
Interest-bearing demand deposits			760,074				633,901				590,083			19.9	%		28.8	%
Savings deposits			114,427				101,376				72,102			12.9	%		58.7	%
Time deposits			612,787				657,438				679,409			-6.8	%		-9.8	%
Total deposits			1,983,099				1,881,553				1,761,390			5.4	%		12.6	%
Federal Home Loan Bank advances			18,000				18,000				22,000			0.0	%		-18.2	%
Subordinated debt			24,845				24,728				24,692			0.5	%		0.6	%
Accrued interest payable			477				843				692			-43.4	%		-31.1	%
Lease liabilities			4,830				5,182				5,873			-6.8	%		-17.8	%
Dividends payable			2,790				- -				- -			N/M			N/M
Other liabilities			10,713				10,533				6,437			1.7	%		66.4	%
Total liabilities			2,044,754				1,940,839				1,821,084			5.4	%		12.3	%
Shareholders' Equity
Preferred stock, par value $0.01 per share; authorized
1,000,000 shares; none issued			- -				- -				- -			- -			- -
Common stock, nonvoting, par value $0.01 per share; authorized
1,000,000 shares; none issued			- -				- -				- -			- -			- -
Common stock, voting, par value $0.01 per share; authorized
30,000,000 shares; issued and outstanding, 13,950,570
at 3/31/2022 including 60,366 unvested shares, 13,745,598
shares at 12/31/2021 including 75,826 unvested shares
and 13,634,754 at 3/31/2021, including 68,375 unvested shares			139				137				136			1.5	%		2.2	%
Additional paid-in capital			93,135				91,107				90,295			2.2	%		3.1	%
Retained earnings			122,510				117,626				97,239			4.2	%		26.0	%
Accumulated other comprehensive income (loss)			(10,929	)			(400	)			1,234			-2,632.3	%		985.7	%
Total shareholders' equity			204,855				208,470				188,904			-1.7	%		8.4	%
Total liabilities and shareholders' equity		$	2,249,609			$	2,149,309			$	2,009,988			4.7	%		11.9	%

John Marshall Bancorp, Inc.
Consolidated Statements of Income
(Dollar amounts in thousands, except per share data)
	Three Months Ended
	March 31,
		2022				2021			% Change
	(Unaudited)					(Unaudited)
Interest and Dividend Income
Interest and fees on loans	$	18,184				$	17,839		1.9	%
Interest on investment securities, taxable		1,380					769		79.5	%
Interest on investment securities, tax-exempt		30					30		0.0	%
Dividends		60					65		-7.7	%
Interest on deposits in banks		91					44		106.8	%
Total interest and dividend income		19,745					18,747		5.3	%
Interest Expense
Deposits		1,323					2,060		-35.8	%
Federal Home Loan Bank advances		30					33		-9.1	%
Subordinated debt		476					372		28.0	%
Total interest expense		1,829					2,465		-25.8	%
Net interest income		17,916					16,282		10.0	%
Provision for loan losses		- -					2,365		N/M
Net interest income after provision for loan losses		17,916					13,917		28.7	%
Non-interest Income
Service charges on deposit accounts		77					58		32.8	%
Bank owned life insurance		95					107		-11.2	%
Other service charges and fees		137					104		31.7	%
Gain on sale of securities		- -					10		N/M
Insurance commissions		221					155		42.6	%
Other income (loss)		(116	)				30		-486.7	%
Total non-interest income		414					464		-10.8	%
Non-interest Expenses
Salaries and employee benefits		6,027					4,989		20.8	%
Occupancy expense of premises		493					507		-2.8	%
Furniture and equipment expenses		325					322		0.9	%
Other expenses		1,941					2,075		-6.5	%
Total non-interest expenses		8,786					7,893		11.3	%
Income before income taxes		9,544					6,488		47.1	%
Income tax expense		1,870					1,414		32.2	%
Net income	$	7,674				$	5,074		51.2	%
Earnings Per Share
Basic	$	0.55				$	0.37		48.6	%
Diluted	$	0.55				$	0.37		48.6	%

John Marshall Bancorp, Inc.
Historical Trends - Quarterly Financial Data (Unaudited)
(Dollar amounts in thousands, except per share data)
		2022			2021
	March 31				December 31				September 30				June 30				March 31
Profitability for the quarter:
Interest income	$	19,745			$	18,703			$	18,042			$	18,627			$	18,747
Interest expense		1,829				1,734				1,876				2,136				2,465
Net interest income		17,916				16,969				16,166				16,491				16,282
Provision for loan losses		- -				325				325				90				2,365
Non-interest income		414				513				325				417				464
Non-interest expense		8,786				7,679				7,623				9,067				7,893
Income before income taxes		9,544				9,478				8,543				7,751				6,488
Income tax expense		1,870				1,931				1,782				1,672				1,414
Net income	$	7,674			$	7,547			$	6,761			$	6,079			$	5,074
Financial performance:
Return on average assets (annualized)		1.40	%			1.41	%			1.30	%			1.20	%			1.05	%
Return on average equity (annualized)		14.76	%			14.52	%			13.35	%			12.64	%			10.89	%
Net interest margin		3.33	%			3.22	%			3.15	%			3.31	%			3.43	%
Non-interest income as a percentage of average assets (annualized)		0.08	%			0.10	%			0.06	%			0.08	%			0.10	%
Non-interest expense to average assets (annualized)		1.61	%			1.44	%			1.46	%			1.79	%			1.64	%
Efficency ratio		47.9	%			43.9	%			46.2	%			53.6	%			47.1	%
Per share data:
Earnings per share - basic	$	0.55			$	0.55			$	0.50			$	0.45			$	0.37
Earnings per share - diluted	$	0.55			$	0.54			$	0.48			$	0.44			$	0.37
Tangible book value per share	$	14.68			$	15.17			$	14.82			$	14.32			$	13.85
Weighted average common shares (basic)		13,783,034				13,581,586				13,580,538				13,572,779				13,557,779
Weighted average common shares (diluted)		13,991,692				13,879,595				13,883,104				13,868,147				13,809,751
Common shares outstanding at end of period		13,950,570				13,745,598				13,644,985				13,639,173				13,634,754
Dividends declared per share	$	0.20			$	- -			$	- -			$	- -			$	- -
Non-interest Income
Service charges on deposit accounts	$	77			$	74			$	70			$	60			$	58
Bank owned life insurance		95				102				102				100				107
Other service charges and fees		137				138				120				115				104
Gain on sale of securities		- -				- -				- -				- -				10
Insurance commissions		221				79				28				22				155
Other income (loss)		(116	)			120				5				120				30
Total non-interest income	$	414			$	513			$	325			$	417			$	464
Non-interest Expenses
Salaries and employee benefits	$	6,027			$	4,765			$	4,977			$	5,680			$	4,989
Occupancy expense of premises		493				480				484				514				507
Furniture and equipment expenses		325				363				373				378				322
Other expenses		1,941				2,071				1,789				2,495				2,075
Total non-interest expenses	$	8,786			$	7,679			$	7,623			$	9,067			$	7,893
Balance Sheets at Quarter End
Total loans	$	1,631,260			$	1,666,469			$	1,602,377			$	1,567,112			$	1,605,783
Allowance for loan losses		(20,031	)			(20,032	)			(19,706	)			(19,381	)			(19,381	)
Investment securities		409,692				351,629				348,742				306,030				219,106
Interest-earning assets		2,217,553				2,121,407				2,062,000				2,032,235				1,979,848
Total assets		2,249,609				2,149,309				2,095,504				2,065,895				2,009,988
Total deposits		1,983,099				1,881,553				1,837,548				1,815,032				1,761,390
Total interest-bearing liabilities		1,530,133				1,435,443				1,416,396				1,379,031				1,388,286
Total shareholders' equity		204,855				208,470				202,222				195,246				188,904
Quarterly Average Balance Sheets
Total gross loans	$	1,620,533			$	1,629,124			$	1,580,695			$	1,602,125			$	1,575,847
Allowance for loan losses		(20,032	)			(19,889	)			(19,525	)			(19,530	)			(17,816	)
Investment securities		376,608				356,007				325,027				256,671				180,180
Interest-earning assets		2,183,897				2,090,052				2,038,384				1,996,555				1,922,835
Total assets		2,216,131				2,121,980				2,069,143				2,027,364				1,954,088
Total deposits		1,946,882				1,857,782				1,812,635				1,820,939				1,709,678
Total interest-bearing liabilities		1,505,854				1,419,679				1,384,867				1,381,583				1,350,742
Total shareholders' equity		210,900				206,237				200,990				192,918				188,995
Financial Measures
Average equity to average assets		9.5	%			9.7	%			9.7	%			9.5	%			9.7	%
Investment securities to earning assets		18.5	%			16.6	%			16.9	%			15.1	%			11.1	%
Loans to earning assets		73.6	%			78.6	%			77.7	%			77.1	%			81.1	%
Loans to assets		72.5	%			77.5	%			76.5	%			75.9	%			79.9	%
Loans to deposits		82.3	%			88.6	%			87.2	%			86.3	%			91.2	%
Capital Ratios (Bank Level)
Tangible equity / tangible assets		10.2	%			10.8	%			10.8	%			10.6	%			10.5	%
Total risk-based capital ratio		15.4	%			15.3	%			15.2	%			15.0	%			14.6	%
Tier 1 risk-based capital ratio		14.2	%			14.0	%			14.0	%			13.9	%			13.4	%
Leverage ratio		10.8	%			11.0	%			10.8	%			10.7	%			10.8	%
Common equity tier 1 ratio		14.2	%			14.0	%			14.0	%			12.3	%			13.4	%

John Marshall Bancorp, Inc.
Loan, Deposit and Borrowing Detail (Unaudited)
(Dollar amounts in thousands)
	2022						2021
Loans	March 31						December 31					September 30					June 30					March 31
	$ Amount			% of Total			$ Amount			% of Total		$ Amount			% of Total		$ Amount			% of Total		$ Amount			% of Total
Commercial business loans	$	52,569		3.2	%		$	53,378		3.2	%	$	53,166		3.3	%	$	55,375		3.5	%	$	60,637		3.8	%
Commercial PPP loans		7,781		0.5	%			69,567		4.2	%		75,496		4.7	%		82,190		5.2	%		117,796		7.3	%
Commercial owner-occupied real estate loans		339,933		20.9	%			345,272		20.7	%		326,585		20.4	%		320,519		20.4	%		307,918		19.2	%
Total business loans		400,283		24.6	%			468,217		28.1	%		455,247		28.4	%		458,084		29.2	%		486,351		30.3	%
Investor real estate loans		553,093		34.0	%			523,038		31.4	%		519,384		32.4	%		505,605		32.3	%		502,940		31.3	%
Construction & development loans		219,160		13.4	%			231,090		13.9	%		228,993		14.3	%		219,175		14.0	%		250,208		15.6	%
Multi-family loans		99,100		6.1	%			100,132		6.0	%		81,226		5.1	%		92,203		5.9	%		84,689		5.3	%
Total commercial real estate loans		871,353		53.5	%			854,260		51.3	%		829,603		51.8	%		816,983		52.1	%		837,837		52.2	%
Residential mortgage loans		356,331		21.9	%			342,491		20.6	%		316,549		19.8	%		291,615		18.6	%		281,964		17.5	%
Consumer loans		513		0.0	%			586		0.0	%		631		0.0	%		916		0.1	%		793		0.0	%
Total loans	$	1,628,480		100.0	%		$	1,665,554		100.0	%	$	1,602,030		100.0	%	$	1,567,598		100.0	%	$	1,606,945		100.0	%
Less: Allowance for loan losses		(20,031	)					(20,032	)				(19,706	)				(19,381	)				(19,381	)
Net deferred loan costs (fees)		2,780						915					347					(486	)				(1,162	)
Net loans	$	1,611,229					$	1,646,437				$	1,582,671				$	1,547,731				$	1,586,402
	2022						2021
	March 31						December 31					September 30					June 30					March 31
Deposits	$ Amount			% of Total			$ Amount			% of Total		$ Amount			% of Total		$ Amount			% of Total		$ Amount			% of Total
Non-interest bearing demand deposits	$	495,811		25.0	%		$	488,838		26.0	%	$	463,868		25.2	%	$	478,705		26.4	%	$	419,796		23.8	%
Interest-bearing demand deposits:
NOW accounts(1)		345,087		17.4	%			267,594		14.2	%		294,261		16.0	%		254,060		14.0	%		245,274		13.9	%
Money market accounts(1)		414,987		20.9	%			366,306		19.4	%		336,651		18.3	%		333,818		18.4	%		344,807		19.6	%
Savings accounts		114,427		5.8	%			101,376		5.4	%		94,840		5.2	%		79,119		4.4	%		72,102		4.1	%
Certificates of deposit
$250,000 or more		241,230		12.1	%			250,204		13.3	%		232,722		12.7	%		243,662		13.4	%		265,772		15.1	%
Less than $250,000		91,050		4.6	%			103,084		5.5	%		104,463		5.7	%		112,991		6.2	%		119,828		6.8	%
QwickRate® certificates of deposit		23,136		1.2	%			25,122		1.3	%		28,998		1.6	%		31,481		1.7	%		38,565		2.2	%
IntraFi® certificates of deposit		39,628		2.0	%			61,281		3.3	%		66,926		3.6	%		60,761		3.3	%		38,284		2.2	%
Brokered deposits		217,743		11.0	%			217,748		11.6	%		214,819		11.7	%		220,435		12.1	%		216,962		12.3	%
Total deposits	$	1,983,099		100.0	%		$	1,881,553		100.0	%	$	1,837,548		100.0	%	$	1,815,032		100.0	%	$	1,761,390		100.0	%
Borrowings
Federal Home Loan Bank advances		18,000		42.0	%		$	18,000		42.1	%	$	18,000		42.1	%	$	18,000		42.2	%	$	22,000		47.1	%
Subordinated debt		24,845		58.0	%			24,728		57.9	%		24,716		57.9	%		24,704		57.8	%		24,692		52.9	%
Total borrowings	$	42,845		100.0	%		$	42,728		100.0	%	$	42,716		100.0	%	$	42,704		100.0	%	$	46,692		100.0	%
Total deposits and borrowings	$	2,025,944					$	1,924,281				$	1,880,264				$	1,857,736				$	1,808,082
Core customer funding sources (2)	$	1,742,220		87.1	%		$	1,638,683		86.3	%	$	1,593,731		85.9	%	$	1,563,116		85.3	%	$	1,505,863		84.4	%
Wholesale funding sources (3)		258,879		12.9	%			260,870		13.7	%		261,817		14.1	%		269,916		14.7	%		277,527		15.6	%
Total funding sources	$	2,001,099		100.0	%		$	1,899,553		100.0	%	$	1,855,548		100.0	%	$	1,833,032		100.0	%	$	1,783,390		100.0	%
(1) Includes IntraFi® accounts.
(2) Includes reciprocal IntraFi Demand®, IntraFi Money Market® and IntraFi CD® deposits, which are maintained by customers.
(3) Consists of QwickRate® certificates of deposit, brokered deposits, federal funds purchased and Federal Home Loan Bank advances.

John Marshall Bancorp, Inc.
Average Balance Sheets, Interest and Rates (unaudited)
(Dollar amounts in thousands)
		Three Months Ended March 31, 2022									Three Months Ended March 31, 2021
					Interest			Average						Interest			Average
		Average			Income-			Yields			Average			Income-			Yields
		Balance			Expense			/Rates			Balance			Expense			/Rates
Assets
Securities		$	376,608		$	1,470		1.58	%		$	180,180		$	864		1.94	%
Loans, net of unearned income			1,620,533			18,184		4.55	%			1,575,847			17,839		4.59	%
Interest-bearing deposits in other banks			186,756			91		0.20	%			166,808			44		0.11	%
Total interest-earning assets		$	2,183,897		$	19,745		3.67	%		$	1,922,835		$	18,747		3.95	%
Other assets			32,234									31,253
Total assets		$	2,216,131								$	1,954,088
Liabilities & Shareholders' equity
Interest-bearing deposits
NOW accounts		$	324,852		$	202		0.25	%		$	238,993		$	198		0.34	%
Money market accounts			392,389			350		0.36	%			335,291			317		0.38	%
Savings accounts			108,375			88		0.33	%			67,248			65		0.39	%
Time deposits			637,469			683		0.43	%			665,003			1,480		0.90	%
Total interest-bearing deposits		$	1,463,085		$	1,323		0.37	%		$	1,306,535		$	2,060		0.64	%
Federal funds purchased		$	- -		$	- -		0.00	%		$	1		$	- -		0.00	%
Subordinated debt			24,769			476		7.79	%			24,684			372		6.11	%
Other borrowed funds			18,000			30		0.68	%			19,522			33		0.69	%
Total interest-bearing liabilities		$	1,505,854		$	1,829		0.49	%		$	1,350,742		$	2,465		0.74	%
Demand deposits			483,797									403,143
Other liabilities			15,580									11,208
Total liabilities		$	2,005,231								$	1,765,093
Shareholders' equity			210,900									188,995
Total liabilities and shareholders' equity		$	2,216,131								$	1,954,088
Interest rate spread								3.17	%								3.21	%
Net interest income and margin					$	17,916		3.33	%					$	16,282		3.43	%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20220419006082/en/

Christopher W. Bergstrom, President & CEO of John Marshall Bancorp, Inc.

(703) 584-0840

Source: John Marshall Bancorp, Inc.

FAQ

What were the earnings results for JMSB in Q1 2022?

John Marshall Bancorp reported net income of $7.7 million, or $0.55 per diluted share, for Q1 2022.

What is the special dividend declared by JMSB?

JMSB declared a special cash dividend of $0.20 per share, payable on May 24, 2022.

How much did total assets increase for JMSB?

Total assets increased by 11.9% to $2.25 billion at March 31, 2022.

What was the Return on Average Equity for JMSB in Q1 2022?

The Return on Average Equity for JMSB was 14.76% for Q1 2022.

Did JMSB report any non-performing loans in Q1 2022?

No non-performing loans were reported for the tenth consecutive quarter.