John Marshall Bancorp, Inc. Reports 24.9% Annual Earnings Increase, 14.8% Quarterly Loan Growth Annualized and Superior Asset Quality

Rhea-AI Summary

John Marshall Bancorp, Inc. (Nasdaq: JMSB) announced record earnings for Q4 2022, reporting net income of $8.2 million, marking an 8.7% increase from Q4 2021. For the year, net income reached $31.8 million, a 24.9% rise compared to 2021. Earnings per share for Q4 were $0.58, with a year-end EPS of $2.25, both showing substantial growth. Core loan growth was robust at 11.9% YoY, with total assets increasing to $2.35 billion. The Bank maintained no non-performing loans and strong capital ratios. While the company faced potential challenges from rising deposit costs and a possible recession, it remains confident in its business model and asset quality.

Positive

• Record net income of $31.8 million for 2022, up 24.9% YoY.
• Core loans grew by $190.6 million or 11.9% YoY.
• Annualized ROAA was 1.40% and ROAE 15.65% for Q4 2022.
• No non-performing assets reported for thirteenth consecutive quarter.
• Shareholder equity increased to $212.8 million, a 2.1% rise.

Negative

• Net interest margin decreased to 3.05% from 3.23% YoY.
• Increased cost of interest-bearing liabilities to 1.53% in Q4 2022 from 0.48% YoY.
• Potential impact from rising deposit costs and indications of a recession.

 

RESTON, Va.--(BUSINESS WIRE)-- John Marshall Bancorp, Inc. (Nasdaq: JMSB) (the “Company”), parent company of John Marshall Bank (the “Bank”), reported its financial results for the three and twelve months ended December 31, 2022.

Fourth Quarter and Year-to-Date Highlights

• Record Earnings – The Company reported its sixteenth consecutive quarter of record earnings. Net income of $8.2 million for the fourth quarter of 2022 represented a $655 thousand or 8.7% increase over the $7.5 million reported for the fourth quarter of 2021. Earnings per diluted share for the three months ended December 31, 2022 were $0.58, a 7.4% increase over the $0.54 reported for the three months ended December 31, 2021. The Company reported record net income of $31.8 million for the year ended December 31, 2022, a $6.3 million or 24.9% increase over the $25.5 million reported for the same period of 2021. Earnings per diluted share for the year ended December 31, 2022 were $2.25, a 22.9% increase over the $1.83 reported for the same period of 2021.
• Robust Core Loan Growth – Excluding Paycheck Protection Program (“PPP”) loans, gross loans net of unearned income (“Core Loans”) grew $190.6 million or 11.9% from December 31, 2021 to December 31, 2022. Core Loans increased $64.4 million during the quarter ended December 31, 2022 or 14.8% annualized from September 30, 2022. The Company remains steadfast in adhering to our strict underwriting standards to maintain pristine asset quality.
• Consistently Strong Returns – Annualized Return on Average Assets (“ROAA”) was 1.40% and annualized Return on Average Equity (“ROAE”) was 15.65% for the three months ended December 31, 2022. ROAA and ROAE were 1.41% and 14.52%, respectively, for the three months ended December 31, 2021.
• Commitment to Cost Conscious Growth – Revenues (net interest income plus non-interest income) grew 16.8% annualized for the three months ended December 31, 2022 relative to the three months ended December 31, 2021. Over the same period, overhead decreased 11.9% annualized. The ratio of annualized non-interest expense to average assets was 1.27% for the fourth quarter of 2022 compared to 1.44% for the fourth quarter of 2021. The efficiency ratio for the fourth quarter of 2022 was 40.9% compared to 43.9% for the fourth quarter of 2021.
• No Non-performing Assets; No Loans More Than 30 Days Past Due – For the thirteenth consecutive quarter, the Company had no nonperforming loans, no other real estate owned, and no loans 30 days or more past due. There were no charge-offs during the quarter. 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, “2022 was a remarkable year for John Marshall. We registered our shares with the SEC, listed our stock on Nasdaq, gained inclusion in the Russell 2000 Index, refinanced our subordinated debt to a lower rate, paid our first cash dividend, broadened our customer service and fee income capabilities by implementing an interest rate swap program, decreased overhead, maintained our outstanding asset quality and delivered our fourth consecutive year of record earnings. On behalf of the Company, I want to express appreciation for our employees and customers who made these many strategic goals reality. Looking forward, each year holds its own set of challenges and early signs indicate that 2023 will be no different. As interest rates have risen, depositors have many investment alternatives from which to choose and, as a result, deposit costs are rising. Certain economic data seem to point to a recession, which could moderate loan growth and impact borrowers’ ability to service their loans. Despite these potential hurdles, I remain confident in our people and our business model. We believe with our liquid, well-capitalized balance sheet, strong asset quality, robust underwriting and conservative culture that we are well prepared to manage for the potential challenges ahead.”

Balance Sheet and Credit Quality

Total assets were $2.35 billion at December 31, 2022, $2.31 billion at September 30, 2022 and $2.15 billion at December 31, 2021. During the fourth quarter of 2022, assets increased $42.7 million or 7.4% annualized primarily due to an increase in loans. Asset growth from December 31, 2021 to December 31, 2022 was $198.9 million or 9.3%.

Total loans, net of unearned income, increased by 7.4% to $1.79 billion at December 31, 2022, compared to $1.67 billion at December 31, 2021. The year-over-year increase in the loan portfolio was primarily attributable to growth in the investor real estate and residential mortgage portfolios.

Total loans, net of unearned income, increased $64.4 million during the quarter ended December 31, 2022 or 14.8% annualized from $1.73 billion at September 30, 2022. The increase in loans was primarily attributable to growth in the investor real estate, residential mortgage, and commercial owner-occupied real estate loan portfolios.

The Company’s portfolio of investments in fixed income securities was $457.0 million at December 31, 2022, $467.1 million at September 30, 2022, and $344.8 million at December 31, 2021. All but $11.3 million of the fixed income portfolio is backed by the explicit or implicit guarantees of the United States Government or one of its agencies. Nearly 70% of the fixed income portfolio is invested in amortizing investments, which provides the Company with a source of steady cash flow to reinvest each month. For 2023, the Company anticipates primarily reinvesting fixed income cash flows into loans. At December 31, 2022, the fixed income portfolio had an estimated weighted average life of 4.5 years.

The Company’s balance sheet remains highly liquid. In addition to deposits in banks and cash flows from fixed income securities, liquidity needs are also met with cash and cash equivalents and unencumbered securities classified as available-for-sale. Liquid assets totaled $335.8 million as of December 31, 2022 compared to $299.3 million at December 31, 2021. These amounts represented 14.3% and 16.8% of total assets as of December 31, 2022 and December 31, 2021, respectively. In addition, the Bank had secured borrowing capacity of $388 million at December 31, 2022.

Total deposits were $2.07 billion at December 31, 2022, $2.06 billion at September 30, 2022, and $1.88 billion at December 31, 2021. Deposit growth was 9.9% during the past twelve months, as time deposits grew 22.3% and interest-bearing demand deposits grew 9.2%.

Total borrowings, defined as federal funds purchased, Federal Home Loan Bank advances, and subordinated debt, increased by $25.5 million to $50.1 million at December 31, 2022 compared to $24.6 million at September 30, 2022. The increase during the quarter was due to $25.5 million in federal funds purchased. Federal Home Loan Bank advances decreased from $18.0 million at December 31, 2021 to zero at December 31, 2022 and were unchanged from September 30, 2022.

Shareholders’ equity increased $4.3 million or 2.1% to $212.8 million at December 31, 2022 compared to $208.5 million at December 31, 2021, as a result of increases in retained earnings and additional paid-in capital, which were partially offset by the increase in the unrealized loss on our available-for-sale investment portfolio. Book value per share was $15.09 as of December 31, 2022 compared to $15.17 as of December 31, 2021. The year-over-year change in book value per share was primarily due to increased accumulated other comprehensive loss, increased share count from shareholder option exercises and restricted share award issuances, and cash dividends paid, partially offset by the Company’s earnings over the previous twelve months. The increase in accumulated other comprehensive loss was primarily attributable to increases in unrealized losses on our available-for-sale investment portfolio due to market value changes as a result of rising interest rates. Book value per share, excluding accumulated other comprehensive loss (a non-GAAP financial measure which is defined in the tables below) was $17.13 at December 31, 2022 compared to $15.20 at December 31, 2021. The Bank’s capital ratios remain well above regulatory thresholds for well-capitalized banks. As of December 31, 2022, the Bank’s total risk-based capital ratio was 15.6%, compared to 15.3% at December 31, 2021.

The Company recorded no net charge-offs during the fourth quarter of 2022, the third quarter of 2022, and the fourth quarter of 2021. As of December 31, 2022, the Company had no non-accrual loans, no loans more than 30 days past due, and no other real estate owned assets.

At December 31, 2022, the allowance for loan losses was $20.2 million or 1.13% of outstanding loans, net of unearned income, compared to $20.0 million or 1.20% of outstanding loans, net of unearned income, at September 30, 2022. The decrease in the allowance as a percentage of outstanding loans, net of unearned income, was primarily due to changes in the loan portfolio’s composition as well as net changes in qualitative adjustments. As of December 31, 2022, the Company continued to account for its allowance using an incurred loss model. Beginning on January 1, 2023, and in all subsequent periods, the Company will determine its allowance using the current expected credit losses standard (ASC 326).

Income Statement Review

Quarterly Results

Net income for the fourth quarter of 2022 increased $655 thousand or 8.7% to $8.2 million compared to $7.5 million for the fourth quarter of 2021.

Net interest income for the fourth quarter of 2022 increased $536 thousand or 3.2% compared to the fourth quarter of 2021, driven primarily by higher yields on interest-earning assets and growth in the Company’s loan and investment portfolios. The yield on interest earning assets was 4.10% for the fourth quarter of 2022 compared to 3.56% for the same period in 2021. The increase in yield on interest earning assets was primarily due to higher yields on the Company’s loan and investment portfolios and deposits in banks as a result of increases in interest rates during the year. The cost of interest-bearing liabilities was 1.53% for the fourth quarter of 2022 compared to 0.48% for the same quarter of the prior year. The increase in the cost of interest-bearing liabilities was primarily due to a 1.08% increase in the cost of interest-bearing deposits as a result of the repricing of the Company’s time deposits coupled with an increase in rates offered on money market, NOW, and savings deposit accounts during the year. The annualized net interest margin for the fourth quarter of 2022 was 3.05% as compared to 3.23% for the same quarter of the prior year. The decrease in net interest margin was primarily due to the increase in cost of interest-bearing deposits, which was partially offset by an increase in yields on the Company’s loan and investment portfolios.

The Company recorded a $175 thousand provision for loan losses for the fourth quarter of 2022, compared to a $325 thousand provision for the fourth 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 increased $205 thousand or 40.0% during the fourth quarter of 2022 compared to the fourth quarter of 2021. The increase in non-interest income was primarily due to swap fee income of $127 thousand recognized during the quarter on the Company’s first back-to-back loan interest rate swap (“swap”). The Company enters into swaps with commercial loan customers to provide a facility for customers to mitigate the fluctuations in the variable rate on the respective loans. These swaps are matched in exact offsetting terms to swaps that the Company enters into with an outside third party. The swaps are reported at fair value in other assets or other liabilities in the Consolidated Balance Sheet. The increase in non-interest income was also attributable to mark-to-market adjustments of $35 thousand resulting from an increase in value of investments related to the Company’s nonqualified deferred compensation plan, and increases in services charges and fees on deposit accounts. The increase was partially offset by modest decreases in insurance commissions and bank owned life insurance (“BOLI”) income.

Non-interest expense decreased $230 thousand or 3.0% for the three months ended December 31, 2022 compared to the three months ended December 31, 2021. The decrease in non-interest expense was primarily due to decreases in salaries and employee benefits expense, occupancy expense, furniture and equipment expense, marketing expense, and a release in unfunded commitment reserves during the quarter. The decrease in salaries and employee benefits was driven by a decrease in incentive and deferred compensation expense when compared to the prior year quarter due to changes in staffing. Two of the Company’s former senior executive vice presidents became advisors to the Chief Executive Officer effective June 1, 2022. The decrease in occupancy expense of premises was due to a decrease in office rent as a result of the renegotiation of certain leases. The decrease in furniture and equipment expense was due to lower depreciation expense on fixed assets. The decrease in marketing expense was primarily due to lower marketing vendor related expenses incurred. The release in unfunded commitment reserves was primarily due to a decrease in unfunded commitment balances year-over-year as a result of credit line utilization. The decrease in non-interest expense was partially offset by increases in data processing fees and professional service fees. The increase in data processing fees was due to new investments in technology solutions to support our operations. The Company regularly evaluates technology and invests in applications enabling greater efficiencies or customer experience. The increase in professional service fees was due to expenses incurred in conjunction with the back-to-back loan interest rate swap, as well as increased vendor services supporting our public company reporting requirements that did not exist in the prior year.

For the three months ended December 31, 2022, annualized non-interest expense to average assets was 1.27% compared to 1.44% for the three months ended December 31, 2021. The decrease was primarily due to lower salaries and employee benefit expense coupled with continued cost consciousness.

For the three months ended December 31, 2022, the annualized efficiency ratio was 40.9% compared to 43.9% for the three months ended December 31, 2021. The decrease was primarily due to increases in net interest income and non-interest income as well as a decrease in non-interest expense.

Year-to-Date Results

Net income for the year ended December 31, 2022 increased $6.3 million or 24.9% to $31.8 million compared to $25.5 million for the year ended December 31, 2021. The results for the year ended December 31, 2022 reflect a combination of the impact of an increase in net interest income, a decrease in provision for loan loss expense, and a decrease in non-interest expense, which were partially offset by a decrease in non-interest income.

Net interest income for the year ended December 31, 2022 increased $4.5 million or 6.8% compared to the year ended December 31, 2021 and was driven primarily by growth in the Company’s loan and investment portfolios. The yield on interest earning assets was 3.77% for the year ended December 31, 2022 compared to 3.69% for the same period in 2021. The increase in yield on interest earning assets was primarily due to an increase in interest rates during the year. The cost of interest-bearing liabilities was 0.89% for the year ended December 31, 2022 compared to 0.59% for the same period of the prior year. The increase in the cost of interest-bearing liabilities was primarily due to increases in the cost of interest-bearing deposits as a result of an increase in rates offered on time, savings, money market, and NOW deposit accounts during the second half of 2022. Net interest margin for the year ended December 31, 2022 was 3.16% as compared to 3.29% for the same period of the prior year. The decrease in net interest margin was primarily due to increases in the cost of interest-bearing deposits and accelerated recognition of prior debt issuance costs associated with the refinancing of the subordinated debt, which was partially offset by an increase in yield on all interest-earning assets.

The Company recorded a $175 thousand provision for loan losses for the year ended December 31, 2022, compared to a $3.1 million provision for the year ended December 31, 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 $28 thousand or 1.6% during the year ended December 31, 2022 compared to the year ended December 31, 2021. The decrease in non-interest income was primarily due to mark-to-market adjustments of $(548) thousand resulting from a reduction in value of investments related to the Company’s nonqualified deferred compensation plan. The decrease in non-interest income was partially offset by a non-recurring BOLI related benefit claim realized and interest rate swap fee income recognized, as well as increases in insurance commissions and interchange and other fee income due to higher production and increased customer activity, respectively. During the year ended December 31, 2021, the Company also realized a $10 thousand gain on a called security. Excluding the impacts of the gain on the called security, mark-to-market adjustments, and BOLI related benefit claim, non-interest income increased $373 thousand or 24.6%.

Non-interest expense decreased $388 thousand or 1.2% during the year ended December 31, 2022 compared to the year ended December 31, 2021. The decrease in non-interest expense was primarily due to non-recurring legal and professional fees incurred in 2021, as well as decreases in marketing expense, FDIC insurance fees, and salaries and benefit expense. The decrease in marketing expense was primarily due to lower marketing vendor related expenses. The decrease in FDIC insurance fees was primarily due to lower insurance premiums. The decrease in salaries and benefit expense was primarily due to lower accruals related to deferred compensation and employer health insurance fees. The decrease in non-interest expense was partially offset by increases in state franchise taxes as a result of an increase in the Bank’s equity year-over-year and data processing fees due to new investments in technology solutions to support our operations.

For the year ended December 31, 2022, non-interest expense to average assets was 1.40% compared to 1.58% for the year ended December 31, 2021. The decrease was primarily due to non-recurring legal and professional fees incurred in 2021 as well as decreases in marketing expense and FDIC insurance premiums.

For the year ended December 31, 2022, the efficiency ratio was 44.2% compared to 47.7% for the year ended December 31, 2021. The decrease was primarily due to the increase in net interest income coupled with a decrease in non-interest expense. The decrease was partially offset by a modest decrease in non-interest income.

About John Marshall Bancorp, Inc.

John Marshall Bancorp, Inc. is the bank holding company for John Marshall Bank. The Bank is a $2.35 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 within the meaning of the Private Securities Litigation Reform Act of 1995 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						At or For the Twelve Months Ended
			December 31,						December 31,
		2022			2021			2022			2021
Selected Balance Sheet Data
Cash and cash equivalents		$	61,599		$	105,799		$	61,599		$	105,799
Total investment securities			463,531			351,629			463,531			351,629
Loans, net of unearned income			1,789,508			1,666,469			1,789,508			1,666,469
Allowance for loan losses			(20,208)			(20,032)			(20,208)			(20,032)
Total assets			2,348,235			2,149,309			2,348,235			2,149,309
Non-interest bearing demand deposits			476,697			488,838			476,697			488,838
Interest bearing deposits			1,591,043			1,392,715			1,591,043			1,392,715
Total deposits			2,067,740			1,881,553			2,067,740			1,881,553
Shareholders' equity			212,800			208,470			212,800			208,470
Summary Results of Operations
Interest income		$	23,557		$	18,703		$	84,066		$	74,119
Interest expense			6,052			1,734			13,645			8,211
Net interest income			17,505			16,969			70,421			65,908
Provision for loan losses			175			325			175			3,105
Net interest income after provision for loan losses			17,330			16,644			70,246			62,803
Non-interest income			718			513			1,691			1,719
Non-interest expense			7,449			7,679			31,874			32,262
Income before income taxes			10,599			9,478			40,063			32,260
Net income			8,202			7,547			31,803			25,461
Per Share Data and Shares Outstanding
Earnings per share - basic		$	0.58		$	0.55		$	2.27		$	1.87
Earnings per share - diluted		$	0.58		$	0.54		$	2.25		$	1.83
Book value per share		$	15.09		$	15.17		$	15.09		$	15.17
Book value per share, excluding accumulated other comprehensive loss (1)		$	17.13		$	15.20		$	17.13		$	15.20
Weighted average common shares (basic)			14,019,429			13,614,760			13,931,841			13,581,586
Weighted average common shares (diluted)			14,131,352			13,914,724			14,084,427			13,879,595
Common shares outstanding at end of period			14,098,986			13,745,598			14,098,986			13,745,598
Performance Ratios
Return on average assets (annualized)			1.40	%		1.41	%		1.40	%		1.25	%
Return on average equity (annualized)			15.65	%		14.52	%		15.18	%		12.90	%
Net interest margin			3.05	%		3.23	%		3.16	%		3.29	%
Non-interest income as a percentage of average assets (annualized)			0.12	%		0.10	%		0.07	%		0.08	%
Non-interest expense to average assets (annualized)			1.27	%		1.44	%		1.40	%		1.58	%
Efficiency ratio			40.9	%		43.9	%		44.2	%		47.7	%
Asset Quality
Non-performing assets to total assets			- -	%		- -	%		- -	%		- -	%
Non-performing loans to total loans			- -	%		- -	%		- -	%		- -	%
Allowance for loan losses to non-performing loans			N/M			N/M			N/M			N/M
Allowance for loan losses to total loans (2)			1.13	%		1.20	%		1.13	%		1.20	%
Net charge-offs (recoveries) to average loans (annualized)			- -	%		- -	%		- -	%		- -	%
Loans 30-89 days past due and accruing interest		$	- -		$	- -		$	- -		$	- -
Non-accrual loans			- -			- -			- -			- -
Other real estate owned			- -			- -			- -			- -
Non-performing assets (3)			- -			- -			- -			- -
Troubled debt restructurings (total)			418			549			418			549
Performing in accordance with modified terms			418			549			418			549
Not performing in accordance with modified terms			- -			- -			- -			- -
Capital Ratios (Bank Level)
Equity / assets			10.0	%		10.8	%		10.0	%		10.8	%
Total risk-based capital ratio			15.6	%		15.3	%		15.6	%		15.3	%
Tier 1 risk-based capital ratio			14.4	%		14.0	%		14.4	%		14.0	%
Leverage ratio			11.3	%		11.0	%		11.3	%		11.0	%
Common equity tier 1 ratio			14.4	%		14.0	%		14.4	%		14.0	%
Other Information
Number of full time equivalent employees			139			138			139			138
# Full service branch offices			8			8			8			8
# Loan production or limited service branch offices			1			1			1			1

(1)	Book value per share excluding accumulated other comprehensive loss, is a non-GAAP financial measure. It is calculated by dividing the total of shareholders’ equity less the entirety of the balance of our accumulated other comprehensive loss by the number of shares outstanding as of the measurement date.
(2)	The allowance for loan losses to total loans, excluding PPP loans, net of unearned income of $132 thousand, was 1.13% at December 31, 2022. The allowance for loan losses to total loans, excluding PPP loans, net of unearned income of $67.7 million, was 1.25% at December 31, 2021. PPP loans received no allocations in the allowance estimate due to the underlying guarantees.
(3)	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
		December 31,			September 30,			December 31,			Last Three			Year Over
		2022			2022			2021			Months			Year
Assets		(Unaudited)			(Unaudited)			(Unaudited)
Cash and due from banks		$	6,583		$	14,957		$	2,920		(56.0)	%		125.4	%
Interest-bearing deposits in banks			55,016			59,799			102,879		(8.0)	%		(46.5)	%
Securities available-for-sale, at fair value			357,576			366,546			239,300		(2.4)	%		49.4	%
Securities held-to-maturity, fair value of $81,161, $81,765, and $103,258 at 12/31/2022, 9/30/2022, and 12/31/2021, respectively.			99,415			100,598			105,509		(1.2)	%		(5.8)	%
Restricted securities, at cost			4,425			4,421			4,951		0.1	%		(10.6)	%
Equity securities, at fair value			2,115			1,913			1,869		10.6	%		13.2	%
Loans, net of unearned income			1,789,508			1,725,114			1,666,469		3.7	%		7.4	%
Allowance for loan losses			(20,208)			(20,032)			(20,032)		0.9	%		0.9	%
Net loans			1,769,300			1,705,082			1,646,437		3.8	%		7.5	%
Bank premises and equipment, net			1,219			1,331			1,620		(8.4)	%		(24.8)	%
Accrued interest receivable			5,531			4,744			4,943		16.6	%		11.9	%
Bank owned life insurance			21,170			21,071			20,998		0.5	%		0.8	%
Right of use assets			4,611			3,936			4,913		17.1	%		(6.1)	%
Other assets			21,274			21,142			12,970		0.6	%		64.0	%
Total assets		$	2,348,235		$	2,305,540		$	2,149,309		1.9	%		9.3	%
Liabilities and Shareholders' Equity
Liabilities
Deposits:
Non-interest bearing demand deposits		$	476,697		$	535,186		$	488,838		(10.9)	%		(2.5)	%
Interest-bearing demand deposits			691,945			705,593			633,901		(1.9)	%		9.2	%
Savings deposits			95,241			102,909			101,376		(7.5)	%		(6.1)	%
Time deposits			803,857			719,653			657,438		11.7	%		22.3	%
Total deposits			2,067,740			2,063,341			1,881,553		0.2	%		9.9	%
Federal funds purchased			25,500			- -			- -		N/M			N/M
Federal Home Loan Bank advances			- -			- -			18,000		N/M			N/M
Subordinated debt			24,624			24,603			24,728		0.1	%		(0.4)	%
Accrued interest payable			1,035			643			843		61.0	%		22.8	%
Lease liabilities			4,858			4,186			5,182		16.1	%		(6.3)	%
Other liabilities			11,678			10,555			10,533		10.6	%		10.9	%
Total liabilities			2,135,435			2,103,328			1,940,839		1.5	%		10.0	%
Shareholders' Equity
Preferred stock, par value $0.01 per share; authorized 1,000,000 shares; none issued			- -			- -			- -		N/M			N/M
Common stock, nonvoting, par value $0.01 per share; authorized 1,000,000 shares; none issued			- -			- -			- -		N/M			N/M
Common stock, voting, par value $0.01 per share; authorized 30,000,000 shares; issued and outstanding, 14,098,986 at 12/31/2022 including 55,185 unvested shares, 14,070,080 shares at 9/30/2022 including 58,046 unvested shares and 13,745,598 at 12/31/2021, including 75,826 unvested shares			141			140			137		0.7	%		2.9	%
Additional paid-in capital			94,726			94,560			91,107		0.2	%		4.0	%
Retained earnings			146,630			138,428			117,626		5.9	%		24.7	%
Accumulated other comprehensive loss			(28,697)			(30,916)			(400)		N/M			N/M
Total shareholders' equity			212,800			202,212			208,470		5.2	%		2.1	%
Total liabilities and shareholders' equity		$	2,348,235		$	2,305,540		$	2,149,309		1.9	%		9.3	%

John Marshall Bancorp, Inc.
Consolidated Statements of Income
(Dollar amounts in thousands, except per share data)
		Three Months Ended									Twelve Months Ended
		December 31,									December 31,
		2022			2021			% Change			2022			2021			% Change
		(Unaudited)			(Unaudited)						(Unaudited)			(Unaudited)
Interest and Dividend Income
Interest and fees on loans		$	20,541		$	17,340		18.5	%		$	74,281		$	69,415		7.0	%
Interest on investment securities, taxable			2,337			1,225		90.8	%			7,934			4,146		91.4	%
Interest on investment securities, tax-exempt			30			30		0.0	%			120			120		0.0	%
Dividends			64			67		(4.5)	%			249			263		(5.3)	%
Interest on deposits in banks			585			41		N/M				1,482			175		N/M
Total interest and dividend income			23,557			18,703		26.0	%			84,066			74,119		13.4	%
Interest Expense
Deposits			5,688			1,331		327.3	%			11,778			6,599		78.5	%
Federal funds purchased			15			- -		N/M				15			- -		N/M
Federal Home Loan Bank advances			- -			31		N/M				42			125		(66.4)	%
Subordinated debt			349			372		(6.2)	%			1,810			1,487		21.7	%
Total interest expense			6,052			1,734		249.0	%			13,645			8,211		66.2	%
Net interest income			17,505			16,969		3.2	%			70,421			65,908		6.8	%
Provision for Loan Losses			175			325		(46.2)	%			175			3,105		(94.4)	%
Net interest income after provision for loan losses			17,330			16,644		4.1	%			70,246			62,803		11.9	%
Non-interest Income
Service charges on deposit accounts			84			74		13.5	%			324			544		(40.4)	%
Bank owned life insurance			99			102		(2.9)	%			544			411		32.4	%
Other service charges and fees			187			138		35.5	%			656			195		236.4	%
Gains on securities			- -			- -		N/M				- -			10		N/M
Insurance commissions			70			79		(11.4)	%			382			284		34.5	%
Other income (loss)			278			120		131.7	%			(215)			275		N/M
Total non-interest income			718			513		40.0	%			1,691			1,719		(1.6)	%
Non-interest Expenses
Salaries and employee benefits			4,436			4,765		(6.9)	%			20,190			20,411		(1.1)	%
Occupancy expense of premises			458			480		(4.6)	%			1,893			1,985		(4.6)	%
Furniture and equipment expenses			336			363		(7.4)	%			1,325			1,436		(7.7)	%
Other expenses			2,219			2,071		7.1	%			8,466			8,430		0.4	%
Total non-interest expense			7,449			7,679		(3.0)	%			31,874			32,262		(1.2)	%
Income before income taxes			10,599			9,478		11.8	%			40,063			32,260		24.2	%
Income tax Expense			2,397			1,931		24.1	%			8,260			6,799		21.5	%
Net income		$	8,202		$	7,547		8.7	%		$	31,803		$	25,461		24.9	%
Earnings Per Share
Basic		$	0.58		$	0.55		5.5	%		$	2.27		$	1.87		21.5	%
Diluted		$	0.58		$	0.54		7.4	%		$	2.25		$	1.83		22.9	%

John Marshall Bancorp, Inc.
Historical Trends - Quarterly Financial Data (Unaudited)
(Dollar amounts in thousands, except per share data)
		2022												2021
		December 31			September 30			June 30			March 31			December 31			September 30			June 30			March 31
Profitability for the Quarter:
Interest income		$	23,557		$	21,208		$	19,555		$	19,745		$	18,703		$	18,042		$	18,627		$	18,747
Interest expense			6,052			3,516			2,247			1,829			1,734			1,876			2,136			2,465
Net interest income			17,505			17,692			17,308			17,916			16,969			16,166			16,491			16,282
Provision for loan losses			175			- -			- -			- -			325			325			90			2,365
Non-interest income			718			450			109			414			513			325			417			464
Non-interest expense			7,449			7,958			7,681			8,786			7,679			7,623			9,067			7,893
Income before income taxes			10,599			10,184			9,736			9,544			9,478			8,543			7,751			6,488
Income tax expense			2,397			2,139			1,854			1,870			1,931			1,782			1,672			1,414
Net income		$	8,202		$	8,045		$	7,882		$	7,674		$	7,547		$	6,761		$	6,079		$	5,074
Financial Performance:
Return on average assets (annualized)			1.40	%		1.38	%		1.41	%		1.40	%		1.41	%		1.30	%		1.20	%		1.05	%
Return on average equity (annualized)			15.65	%		15.07	%		15.28	%		14.76	%		14.52	%		13.35	%		12.64	%		10.89	%
Net interest margin			3.05	%		3.10	%		3.16	%		3.34	%		3.23	%		3.15	%		3.32	%		3.44	%
Non-interest income as a percentage of average assets (annualized)			0.12	%		0.08	%		0.02	%		0.08	%		0.10	%		0.06	%		0.08	%		0.10	%
Non-interest expense to average assets (annualized)			1.27	%		1.36	%		1.38	%		1.61	%		1.44	%		1.46	%		1.79	%		1.64	%
Efficiency ratio			40.9	%		43.9	%		44.1	%		47.9	%		43.9	%		46.2	%		53.6	%		47.1	%
Per Share Data:
Earnings per share - basic		$	0.58		$	0.57		$	0.56		$	0.55		$	0.55		$	0.50		$	0.45		$	0.37
Earnings per share - diluted		$	0.58		$	0.57		$	0.56		$	0.55		$	0.54		$	0.48		$	0.44		$	0.37
Book value per share		$	15.09		$	14.37		$	14.80		$	14.68		$	15.17		$	14.82		$	14.32		$	13.85
Dividends declared per share		$	- -		$	- -		$	- -		$	0.20		$	- -		$	- -		$	- -		$	- -
Weighted average common shares (basic)			14,019,429			13,989,414			13,932,256			13,783,034			13,614,760			13,580,538			13,572,779			13,557,779
Weighted average common shares (diluted)			14,131,352			14,108,286			14,085,160			13,991,692			13,914,724			13,883,104			13,868,147			13,809,751
Common shares outstanding at end of period			14,098,986			14,070,080			14,026,589			13,950,570			13,745,598			13,644,985			13,639,173			13,634,754
Non-interest Income:
Service charges on deposit accounts		$	84		$	79		$	84		$	77		$	74		$	70		$	60		$	58
Bank owned life insurance			99			255			95			95			102			102			100			107
Other service charges and fees			187			175			157			137			138			120			115			104
Gains on securities			- -			- -			- -			- -			- -			- -			- -			10
Insurance commissions			70			47			44			221			79			28			22			155
Other income (loss)			278			(106)			(271)			(116)			120			5			120			30
Total non-interest income		$	718		$	450		$	109		$	414		$	513		$	325		$	417		$	464
Non-interest Expenses:
Salaries and employee benefits		$	4,436		$	5,072		$	4,655		$	6,027		$	4,765		$	4,977		$	5,680		$	4,989
Occupancy expense of premises			458			461			482			493			480			484			514			507
Furniture and equipment expenses			336			323			341			325			363			373			378			322
Other expenses			2,219			2,102			2,203			1,941			2,071			1,789			2,495			2,075
Total non-interest expenses		$	7,449		$	7,958		$	7,681		$	8,786		$	7,679		$	7,623		$	9,067		$	7,893
Balance Sheets at Quarter End:
Total loans		$	1,789,508		$	1,725,114		$	1,692,652		$	1,631,260		$	1,666,469		$	1,602,377		$	1,567,112		$	1,605,783
Allowance for loan losses			(20,208)			(20,032)			(20,031)			(20,031)			(20,032)			(19,706)			(19,381)			(19,381)
Investment securities			463,531			473,478			473,914			409,692			351,629			348,742			306,030			219,106
Interest-earning assets			2,308,055			2,258,822			2,274,968			2,217,553			2,121,407			2,062,000			2,032,235			1,979,848
Total assets			2,348,235			2,305,540			2,316,374			2,249,609			2,149,309			2,095,504			2,065,895			2,009,988
Total deposits			2,067,740			2,063,341			2,043,741			1,983,099			1,881,553			1,837,548			1,815,032			1,761,390
Total interest-bearing liabilities			1,641,167			1,552,758			1,581,017			1,530,133			1,435,443			1,416,396			1,379,031			1,388,286
Total shareholders' equity			212,800			202,212			207,530			204,855			208,470			202,222			195,246			188,904
Quarterly Average Balance Sheets:
Total gross loans		$	1,759,747		$	1,684,796		$	1,641,914		$	1,620,533		$	1,629,124		$	1,580,695		$	1,602,125		$	1,575,847
Allowance for loan losses			(20,042)			(20,032)			(20,031)			(20,032)			(19,889)			(19,525)			(19,530)			(17,816)
Investment securities			468,956			488,860			447,688			376,608			356,007			325,027			256,671			180,180
Interest-earning assets			2,289,061			2,277,325			2,204,709			2,183,897			2,090,052			2,038,384			1,996,555			1,922,835
Total assets			2,330,307			2,314,825			2,240,119			2,216,131			2,121,980			2,069,143			2,027,364			1,954,088
Total deposits			2,079,161			2,057,640			1,980,231			1,946,882			1,857,782			1,812,635			1,820,939			1,709,678
Total interest-bearing liabilities			1,566,902			1,547,766			1,504,574			1,505,854			1,419,679			1,384,867			1,381,583			1,350,742
Total shareholders' equity			207,906			212,147			206,967			210,900			206,237			200,990			192,918			188,995
Financial Measures:
Average equity to average assets			8.9	%		9.2	%		9.2	%		9.5	%		9.7	%		9.7	%		9.5	%		9.7	%
Investment securities to earning assets			20.1	%		21.0	%		20.8	%		18.5	%		16.6	%		16.9	%		15.1	%		11.1	%
Loans to earning assets			77.5	%		76.4	%		74.4	%		73.6	%		78.6	%		77.7	%		77.1	%		81.1	%
Loans to assets			76.2	%		74.8	%		73.1	%		72.5	%		77.5	%		76.5	%		75.9	%		79.9	%
Loans to deposits			86.5	%		83.6	%		82.8	%		82.3	%		88.6	%		87.2	%		86.3	%		91.2	%
Capital Ratios (Bank Level):
Equity / assets			10.0	%		9.7	%		9.9	%		10.2	%		10.8	%		10.8	%		10.6	%		10.5	%
Total risk-based capital ratio			15.6	%		15.4	%		15.1	%		15.4	%		15.3	%		15.2	%		15.0	%		14.6	%
Tier 1 risk-based capital ratio			14.4	%		14.3	%		14.0	%		14.2	%		14.0	%		14.0	%		13.9	%		13.4	%
Leverage ratio			11.3	%		11.0	%		11.0	%		10.8	%		11.0	%		10.8	%		10.7	%		10.8	%
Common equity tier 1 ratio			14.4	%		14.3	%		14.0	%		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
		December 31				September 30				June 30				March 31				December 31				September 30				June 30				March 31
Loans		$ Amount		% of Total		$ Amount		% of Total		$ Amount		% of Total		$ Amount		% of Total		$ Amount		% of Total		$ Amount		% of Total		$ Amount		% of Total		$ Amount		% of Total
Commercial business loans		$	44,788	2.5	%	$	44,967	2.6	%	$	47,654	2.8	%	$	52,569	3.2	%	$	53,378	3.2	%	$	53,166	3.3	%	$	55,375	3.5	%	$	60,637	3.8	%
Commercial PPP loans			136	0.0	%		138	0.0	%		224	0.0	%		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			366,131	20.5	%		362,346	21.1	%		378,457	22.4	%		339,933	20.9	%		345,272	20.7	%		326,585	20.4	%		320,519	20.4	%		307,918	19.2	%
Total business loans			411,055	23.0	%		407,451	23.7	%		426,335	25.2	%		400,283	24.6	%		468,217	28.1	%		455,247	28.4	%		458,084	29.2	%		486,351	30.3	%
Investor real estate loans			662,769	37.1	%		622,415	36.1	%		598,501	35.5	%		553,093	34.0	%		523,038	31.4	%		519,384	32.4	%		505,605	32.3	%		502,940	31.3	%
Construction & development loans			195,027	11.0	%		199,324	11.6	%		189,644	11.2	%		219,160	13.4	%		231,090	13.9	%		228,993	14.3	%		219,175	14.0	%		250,208	15.6	%
Multi-family loans			89,227	5.0	%		106,460	6.2	%		106,236	6.3	%		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			947,023	53.1	%		928,199	53.9	%		894,381	53.0	%		871,353	53.5	%		854,260	51.3	%		829,603	51.8	%		816,983	52.1	%		837,837	52.2	%
Residential mortgage loans			426,841	23.9	%		385,696	22.4	%		368,370	21.8	%		356,331	21.9	%		342,491	20.6	%		316,549	19.8	%		291,615	18.6	%		281,964	17.5	%
Consumer loans			529	0.0	%		585	0.0	%		651	0.0	%		513	0.0	%		586	0.0	%		631	0.0	%		916	0.1	%		793	0.0	%
Total loans		$	1,785,448	100.0	%	$	1,721,931	100.0	%	$	1,689,737	100.0	%	$	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			(20,208)				(20,032)				(20,031)				(20,031)				(20,032)				(19,706)				(19,381)				(19,381)
Net deferred loan costs (fees)			4,060				3,183				2,915				2,780				915				347				(486)				(1,162)
Net loans		$	1,769,300			$	1,705,082			$	1,672,621			$	1,611,229			$	1,646,437			$	1,582,671			$	1,547,731			$	1,586,402
		2022																2021
		December 31				September 30				June 30				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		$ Amount		% of Total		$ Amount		% of Total		$ Amount		% of Total
Non-interest bearing demand deposits		$	476,697	23.1	%	$	535,186	25.9	%	$	512,284	25.1	%	$	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)			253,148	12.3	%		293,558	14.2	%		338,789	16.6	%		345,087	17.4	%		267,594	14.2	%		294,261	16.0	%		254,060	14.0	%		245,274	13.9	%
Money market accounts(1)			438,797	21.2	%		412,035	20.0	%		399,877	19.6	%		414,987	20.9	%		366,306	19.4	%		336,651	18.3	%		333,818	18.4	%		344,807	19.6	%
Savings accounts			95,241	4.6	%		102,909	5.0	%		112,276	5.4	%		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			314,738	15.2	%		280,027	13.6	%		255,411	12.5	%		241,230	12.1	%		250,204	13.3	%		232,722	12.7	%		243,662	13.4	%		265,772	15.1	%
Less than $250,000			89,247	4.3	%		88,421	4.3	%		87,505	4.3	%		91,050	4.6	%		103,084	5.5	%		104,463	5.7	%		112,991	6.2	%		119,828	6.8	%
QwickRate® certificates of deposit			22,163	1.1	%		20,154	1.0	%		20,154	1.0	%		23,136	1.2	%		25,122	1.3	%		28,998	1.6	%		31,481	1.7	%		38,565	2.2	%
IntraFi® certificates of deposit			25,757	1.2	%		46,305	2.2	%		32,686	1.6	%		39,628	2.0	%		61,281	3.3	%		66,926	3.6	%		60,761	3.3	%		38,284	2.2	%
Brokered deposits			351,952	17.0	%		284,746	13.8	%		284,759	13.9	%		217,743	11.0	%		217,748	11.6	%		214,819	11.7	%		220,435	12.1	%		216,962	12.3	%
Total deposits		$	2,067,740	100.0	%	$	2,063,341	100.0	%	$	2,043,741	100.0	%	$	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 funds purchased		$	25,500	50.9	%	$	- -	0.0	%	$	- -	0.0	%	$	- -	0.0	%	$	- -	0.0	%	$	- -	0.0	%	$	- -	0.0	%	$	- -	0.0	%
Federal Home Loan Bank advances			- -	0.0	%		- -	0.0	%		- -	0.0	%		18,000	42.0	%		18,000	42.1	%		18,000	42.1	%		18,000	42.2	%		22,000	47.1	%
Subordinated debt			24,624	49.1	%		24,603	100.0	%		49,560	100.0	%		24,845	58.0	%		24,728	57.9	%		24,716	57.9	%		24,704	57.8	%		24,692	52.9	%
Total borrowings		$	50,124	100.0	%	$	24,603	100.0	%	$	49,560	100.0	%	$	42,845	100.0	%	$	42,728	100.0	%	$	42,716	100.0	%	$	42,704	100.0	%	$	46,692	100.0	%
Total deposits and borrowings		$	2,117,864			$	2,087,944			$	2,093,301			$	2,025,944			$	1,924,281			$	1,880,264			$	1,857,736			$	1,808,082
Core customer funding sources (2)		$	1,693,625	80.9	%	$	1,758,441	85.2	%	$	1,738,828	85.1	%	$	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)			399,615	19.1	%		304,900	14.8	%		304,913	14.9	%		258,879	12.9	%		260,870	13.7	%		261,817	14.1	%		269,916	14.7	%		277,527	15.6	%
Total funding sources		$	2,093,240	100.0	%	$	2,063,341	100.0	%	$	2,043,741	100.0	%	$	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)
		Twelve Months Ended December 31, 2022								Twelve Months Ended December 31, 2021
					Interest Income /			Average					Interest Income /			Average
		Average Balance			Expense			Rate		Average Balance			Expense			Rate
Assets:
Securities:
Taxable		$	440,899		$	8,183		1.86	%	$	275,071		$	4,409		1.60	%
Tax-exempt(1)			5,001			152		3.04	%		5,007			152		3.04	%
Total securities		$	445,900		$	8,335		1.87	%	$	280,078		$	4,561		1.63	%
Loans, net of unearned income(2):
Taxable			1,652,940			73,497		4.45	%		1,577,418			68,685		4.35	%
Tax-exempt(1)			24,211			993		4.10	%		19,631			924		4.71	%
Total loans, net of unearned income		$	1,677,151		$	74,490		4.44	%	$	1,597,049		$	69,609		4.36	%
Interest-bearing deposits in other banks		$	116,092		$	1,482		1.28	%	$	135,360		$	175		0.13	%
Total interest-earning assets		$	2,239,143		$	84,307		3.77	%	$	2,012,487		$	74,345		3.69	%
Total non-interest earning assets			36,624								31,132
Total assets		$	2,275,767							$	2,043,619
Liabilities & Shareholders’ Equity:
Interest-bearing deposits
NOW accounts		$	311,950		$	1,359		0.44	%	$	262,319		$	798		0.30	%
Money market accounts			395,369			3,340		0.84	%		337,993			1,256		0.37	%
Savings accounts			108,178			504		0.47	%		83,032			300		0.36	%
Time deposits			682,674			6,575		0.96	%		657,986			4,245		0.65	%
Total interest-bearing deposits		$	1,498,171		$	11,778		0.79	%	$	1,341,330		$	6,599		0.49	%
Federal funds purchased			386			15		3.89	%		—			—		0.00	%
Subordinated debt			26,754			1,810		6.77	%		24,702			1,487		6.02	%
Other borrowed funds			6,175			42		0.68	%		18,375			125		0.68	%
Total interest-bearing liabilities		$	1,531,486		$	13,645		0.89	%	$	1,384,407		$	8,211		0.59	%
Demand deposits			518,284								448,723
Other liabilities			16,518								13,146
Total liabilities		$	2,066,288							$	1,846,276
Shareholders’ equity		$	209,479							$	197,343
Total liabilities and shareholders’ equity		$	2,275,767							$	2,043,619
Tax-equivalent net interest income and spread					$	70,662		2.88	%				$	66,134		3.10	%
Less: tax-equivalent adjustment						241								226
Net interest income					$	70,421							$	65,908
Tax-equivalent interest income/earnings assets								3.77	%							3.69	%
Interest expense/earning assets								0.61	%							0.40	%
Net interest margin(3)								3.16	%							3.29	%

(1)	Tax-equivalent income has been adjusted using the federal statutory tax rate of 21%. The annualized taxable-equivalent adjustments utilized in the above table to compute yields aggregated to $241 thousand and $226 thousand in 2022 and 2021, respectively.
(2)	The Company did not have any loans on non-accrual as of December 31, 2022 or December 31, 2021.
(3)	The net interest margin has been calculated on a tax-equivalent basis.

John Marshall Bancorp, Inc.
Average Balance Sheets, Interest and Rates (unaudited)
(Dollar amounts in thousands)
		Three Months Ended December 31, 2022								Three Months Ended December 31, 2021
					Interest Income /			Average					Interest Income /			Average
		Average Balance			Expense			Rate		Average Balance			Expense			Rate
Assets:
Securities:
Taxable		$	463,961		$	2,401		2.05	%	$	350,997		$	1,292		1.46	%
Tax-exempt(1)			4,995			38		3.02	%		5,010			38		3.01	%
Total securities		$	468,956		$	2,439		2.06	%	$	356,007		$	1,330		1.48	%
Loans, net of unearned income(2):
Taxable			1,730,921			20,305		4.65	%		1,606,103			17,152		4.24	%
Tax-exempt(1)			28,826			299		4.12	%		23,021			239		4.12	%
Total loans, net of unearned income		$	1,759,747		$	20,604		4.65	%	$	1,629,124		$	17,391		4.24	%
Interest-bearing deposits in other banks		$	60,358		$	585		3.85	%	$	104,921		$	41		0.16	%
Total interest-earning assets		$	2,289,061		$	23,628		4.10	%	$	2,090,052		$	18,762		3.56	%
Total non-interest earning assets			41,246								31,928
Total assets		$	2,330,307							$	2,121,980
Liabilities & Shareholders’ Equity:
Interest-bearing deposits
NOW accounts		$	271,306		$	530		0.78	%	$	281,690		$	204		0.29	%
Money market accounts			412,682			1,824		1.75	%		351,723			329		0.37	%
Savings accounts			103,542			220		0.84	%		101,199			89		0.35	%
Time deposits			753,228			3,114		1.64	%		642,346			709		0.44	%
Total interest-bearing deposits		$	1,540,758		$	5,688		1.46	%	$	1,376,958		$	1,331		0.38	%
Federal funds purchased			1,533			15		3.88	%		—			—		0.00	%
Subordinated debt			24,611			349		5.63	%		24,720			372		5.97	%
Other borrowed funds			—			—		0.00	%		18,001			31		0.68	%
Total interest-bearing liabilities		$	1,566,902		$	6,052		1.53	%	$	1,419,679		$	1,734		0.48	%
Demand deposits			538,403								480,824
Other liabilities			17,096								15,240
Total liabilities		$	2,122,401							$	1,915,743
Shareholders’ equity		$	207,906							$	206,237
Total liabilities and shareholders’ equity		$	2,330,307							$	2,121,980
Tax-equivalent net interest income and spread					$	17,576		2.57	%				$	17,028		3.08	%
Less: tax-equivalent adjustment						71								59
Net interest income					$	17,505							$	16,969
Tax-equivalent interest income/earnings assets								4.10	%							3.56	%
Interest expense/earning assets								1.05	%							0.33	%
Net interest margin(3)								3.05	%							3.23	%

(1)	Tax-equivalent income has been adjusted using the federal statutory tax rate of 21%. The annualized taxable-equivalent adjustments utilized in the above table to compute yields aggregated to $71 thousand and $59 thousand in 2022 and 2021, respectively.
(2)	The Company did not have any loans on non-accrual as of December 31, 2022 or December 31, 2021.
(3)	The net interest margin has been calculated on a tax-equivalent basis.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20230118005186/en/

Christopher W. Bergstrom (703) 584-0840

Kent D. Carstater (703) 289-5922

Source: John Marshall

FAQ

What were John Marshall Bancorp's earnings for Q4 2022?

John Marshall Bancorp reported net income of $8.2 million for Q4 2022.

How much did John Marshall Bancorp's net income increase in 2022?

The net income for John Marshall Bancorp increased by 24.9% to $31.8 million in 2022.

What was the earnings per share for John Marshall Bancorp in 2022?

The earnings per share for John Marshall Bancorp were $2.25 for the year ended December 31, 2022.

What is the growth rate of core loans for John Marshall Bancorp?

Core loans grew by 11.9% year-over-year, increasing by $190.6 million.

What is the outlook for John Marshall Bancorp in 2023?

While confident, John Marshall Bancorp faces challenges due to rising deposit costs and potential recession impacts.