John Marshall Bancorp, Inc. Reports Annualized Net Interest Income Increases 27.5%, Balance Sheet Well-Positioned for 2025 Growth

Rhea-AI Summary

John Marshall Bancorp (JMSB) reported Q4 2024 net income of $4.8 million ($0.33 per diluted share), up from $4.2 million in Q3 2024 and $4.5 million in Q4 2023. Key highlights include:

Net interest income reached $14.1 million in Q4 2024, showing a 27.5% annualized increase from Q3. The net interest margin improved to 2.52%, up 22 basis points from Q3 2024 and 40 basis points from Q4 2023.

The loan portfolio grew by $29.6 million (6.4% annualized) during Q4 2024, with $118.6 million in new loan commitments. Asset quality remained excellent with no non-accrual loans or real estate owned assets. The bank maintained strong capital ratios, well above regulatory requirements for well-capitalized status.

Book value per share increased to $17.28 as of December 31, 2024, up from $17.07 in Q3 2024 and $16.25 in Q4 2023, representing a 6.3% annual increase.

Positive

• Net income increased 12.8% QoQ to $4.8 million
• Net interest margin improved 40 basis points YoY to 2.52%
• Loan portfolio grew 6.4% annualized in Q4
• New loan commitments increased 79.4% YoY to $118.6 million
• Zero non-performing loans and excellent asset quality
• Book value per share grew 6.3% YoY to $17.28

Negative

• Total assets decreased 1.7% QoQ to $2.23 billion
• Total deposits declined 2.3% QoQ to $1.89 billion
• Uninsured deposits increased to $659.2 million from $634.1 million YoY

Insights

Financial Analyst

The Q4 2024 results reveal a bank successfully navigating the challenging rate environment while maintaining strong fundamentals. The 22 basis point sequential improvement in net interest margin to 2.52% is particularly noteworthy, as it demonstrates effective balance sheet management during a period of rate uncertainty.

The bank's funding profile shows strategic optimization, with a $125.5M reduction in higher-cost deposits since December 2023, while core funding sources increased by $39.2M. This shift, combined with the replacement of a 4.76% BTFP advance with 4.01% FHLB funding, indicates prudent liability management that should support margins as rates potentially decline in 2025.

Asset quality metrics are exceptional, with zero non-performing loans and net recoveries of $2,000 for the year. The 1.00% loan loss reserve appears adequate given the pristine credit quality and strong collateral values in the CRE portfolio, where weighted average loan-to-value ratios remain conservative at 49.8% for industrial and 57.6% for office properties.

The $118.6M in new loan commitments represents a 79.4% increase YoY, positioning the bank for continued growth in 2025. With a well-capitalized position and improving efficiency ratio of 55.4%, the bank appears well-positioned to maintain profitability through expected rate cuts while pursuing strategic growth opportunities.

RESTON, Va.--(BUSINESS WIRE)-- John Marshall Bancorp, Inc. (Nasdaq: JMSB) (the “Company”), parent company of John Marshall Bank (the “Bank”), reported net income of $4.8 million ($0.33 per diluted common share) for the quarter ended December 31, 2024, compared to net income of $4.2 million ($0.30 per diluted common share) for the quarter ended September 30, 2024 and net income of $4.5 million ($0.32 per diluted common share) for the quarter ended December 31, 2023.

Selected Highlights

• Significant Increase in Net Interest Income and Margin – For the three months ended December 31, 2024, the Company reported net interest income of $14.1 million, a $912 thousand or 27.5% annualized increase over the $13.2 million reported for the three months ended September 30, 2024. Net interest margin for the three months ended December 31, 2024 was 2.52%, a 22 basis points improvement when compared to the 2.30% net interest margin for the three months ended September 30, 2024 and a 40 basis points improvement when compared to the 2.12% net interest margin for the three months ended December 31, 2023. Net income increased 12.8% or 50.8% annualized when compared to the three months ended September 30, 2024.

• Earnings Accelerating – Pre-tax pre-provision earnings (Non-GAAP) for the three months ended December 31, 2024 was $6.4 million, representing an increase of $1.3 million or 25.6% when compared to the three months ended December 31, 2023. The Federal Reserve initiated a series of fed funds rate reductions commencing mid-September 2024. Reported net income was $4.8 million for the three months ended December 31, 2024 compared to $4.2 million for the three months ended September 30, 2024 and $4.5 million for the three months ended December 31, 2023. Refer to “Explanation of Non-GAAP Measures” and the “Reconciliation of Certain Non-GAAP Financial Measures” table for further details about financial measures used in this release that were determined by methods other than in accordance with GAAP.

• Loan Growth – The Company’s loan portfolio grew $29.6 million or 6.4% annualized during the fourth quarter 2024. The strength in the Company’s loan pipeline continued during the fourth quarter with $118.6 million in new loan commitments, which represented a $52.5 million or 79.4% increase compared to the same period in 2023. New loan commitments represent loans closed, but not necessarily fully funded.

• Excellent Asset Quality – As of December 31, 2024, the Company had no non-accrual loans and no other real estate owned assets (“OREO”). The Company had one loan that was 90 days past due and still accruing interest as of December 31, 2024. The loan paid off, in full, on January 7, 2025. As of the date of this release, the Bank had no non-performing loans, OREO or loans 30 or more days past due. Based upon our loan trial balance as of the date of this earnings release, the Company expects that there will be no loans 30 or more days past due as of January 31, 2025.

• Robust Capitalization – Each of the Bank’s regulatory capital ratios remained well in excess of the well-capitalized thresholds as of December 31, 2024.

• Growing Book Value per Share – Book value per share increased from $17.07 as of September 30, 2024 to $17.28 as of December 31, 2024. For 2024, book value per share increased $1.03 or 6.3% from $16.25 as of December 31, 2023 to $17.28 as of December 31, 2024. When factoring in the $0.25 cash dividend per share paid in July 2024, the book value per share return was 7.9%.

Chris Bergstrom, President and Chief Executive Officer, commented, “In the fourth quarter, we continued to make excellent progress, increasing our net interest margin by 22 basis points. We increased loan balances $29.6 million in the fourth quarter. Our unfunded loan commitments continued to grow during the fourth quarter, and we expect these will be a significant component of our 2025 growth as the loans fund. Our capital levels are strong and well in excess of regulatory requirements for well-capitalized banks. Our balance sheet and the Company are well-positioned to pursue growth in 2025. As always, I want to thank our hardworking associates for their inspired efforts in advancing the interests of our customers and the Company.”

Balance Sheet, Liquidity and Credit Quality

Total assets were $2.23 billion at December 31, 2024, $2.27 billion at September 30, 2024, and $2.24 billion at December 31, 2023. Total assets have decreased $39.4 million or 1.7% since September 30, 2024 and decreased $7.6 million or 0.3% since December 31, 2023.

Total loans, net of unearned income, increased $12.2 million or 0.7% to $1.87 billion at December 31, 2024, compared to $1.86 billion at December 31, 2023 and increased $29.6 million during the quarter ended December 31, 2024 or 6.4% annualized from $1.84 billion at September 30, 2024. The increase in loans was primarily attributable to growth in the investor real estate loan portfolio, partially offset by a decrease in the commercial owner-occupied real estate and construction & development loan portfolios. Refer to the Loan, Deposit and Borrowing table for further information.

The carrying value of the Company’s fixed income securities portfolio was $222.3 million at December 31, 2024, $237.5 million at September 30, 2024 and $265.5 million at December 31, 2023. The decrease in carrying value of the Company’s fixed income securities portfolio since December 31, 2023 was attributable to amortization of the portfolio. As of December 31, 2024, 95.5% of our bond portfolio carried the implied guarantee of the United States government or one of its agencies. At December 31, 2024, 62% of the fixed income portfolio was invested in amortizing bonds, which provides the Company with a source of steady cash flow. At December 31, 2024, the fixed income portfolio had an estimated weighted average life of 4.2 years. The available-for-sale portfolio comprised approximately 61% of the fixed income securities portfolio and had a weighted average life of 3.1 years at December 31, 2024. The held-to-maturity portfolio comprised approximately 39% of the fixed income securities portfolio and had a weighted average life of 6.0 years at December 31, 2024. The Company did not purchase or sell any fixed income securities during the three and twelve month periods ended December 31, 2024.

The Company’s balance sheet remains highly liquid. The Company’s liquidity position, defined as the sum of cash, unencumbered securities and available secured borrowing capacity, totaled $727.3 million as of December 31, 2024 compared to $639.0 million as of December 31, 2023 and represented 37.5% and 28.5% of total assets, respectively. In addition to available secured borrowing capacity, the Bank had available federal funds lines of $110.0 million at December 31, 2024.

Total deposits were $1.89 billion at December 31, 2024, $1.94 billion at September 30, 2024 and $1.91 billion at December 31, 2023. During the quarter, total deposits decreased $43.7 million or 2.3% when compared to September 30, 2024. Deposits decreased $14.2 million or 0.7% when compared to December 31, 2023. The Bank reduced costlier deposits (certificates of deposit, Qwickrate CDs, IntraFi CDs, and brokered CDs) by $125.5 million since December 31, 2023. As further detailed in the tables included in this release, core funding sources have increased $39.2 million and wholesale funding sources have decreased $61.3 million since December 31, 2023. As of December 31, 2024, the Company had $659.2 million of deposits that were not insured or not collateralized compared to $634.1 million at December 31, 2023.

On September 3, 2024, the Company paid off its $77.0 million Bank Term Funding Program (“BTFP”) advance and concurrently secured three Federal Home Loan Bank (“FHLB”) advances totaling $56.0 million. The FHLB advances have a weighted average fixed interest rate of 4.01% compared to 4.76% for the retired BTFP advance. Total borrowings as of December 31, 2024 consisted of subordinated debt totaling $24.8 million and the FHLB advances.

Shareholders’ equity increased $16.7 million or 7.3% to $246.6 million at December 31, 2024 compared to $229.9 million at December 31, 2023. Book value per share was $17.28 as of December 31, 2024 compared to $16.25 as of December 31, 2023, an increase of 6.3%. The year-over-year change in book value per share was primarily due to the Company’s earnings over the previous twelve months and a decrease in accumulated other comprehensive loss. This increase was partially offset by increased cash dividends paid and increased share count from shareholder option exercises and restricted share award issuances. The decrease in accumulated other comprehensive loss was attributable to decreases in unrealized losses on our available-for-sale investment portfolio due to market value increases.

The Bank’s capital ratios remained well above regulatory thresholds for well-capitalized banks. As of December 31, 2024, the Bank’s total risk-based capital ratio was 16.2%, compared to 15.7% at December 31, 2023. As outlined below, the Bank would continue to remain well above regulatory thresholds for well-capitalized banks at December 31, 2024 in the hypothetical scenario where the entire bond portfolio was sold at fair market value and any losses realized (Non-GAAP). Refer to “Explanation of Non-GAAP Measures” and the “Reconciliation of Certain Non-GAAP Financial Measures” table for further details about financial measures used in this release that were determined by methods other than in accordance with GAAP.

Bank Regulatory Capital Ratios (As Reported)
			Well-Capitalized Threshold			December 31, 2024			December 31, 2023
Total risk-based capital ratio			10.0	%		16.2	%		15.7	%
Tier 1 risk-based capital ratio			8.0	%		15.2	%		14.7	%
Common equity tier 1 ratio			6.5	%		15.2	%		14.7	%
Leverage ratio			5.0	%		12.4	%		11.6	%

Adjusted Bank Regulatory Capital Ratios (Hypothetical Scenario of Selling All Bonds at Fair Market Value - Non-GAAP)
			Well-Capitalized Threshold			December 31, 2024			December 31, 2023
Adjusted total risk-based capital ratio			10.0	%		15.3	%		14.7	%
Adjusted tier 1 risk-based capital ratio			8.0	%		14.2	%		13.5	%
Adjusted common equity tier 1 ratio			6.5	%		14.2	%		13.5	%
Adjusted leverage ratio			5.0	%		11.5	%		10.6	%

As of December 31, 2024, the Company had no non-accrual loans and no OREO. The Company experienced net recoveries of $2 thousand during the twelve months ended December 31, 2024. The Company had one loan that was 90 days past due and still accruing interest as of December 31, 2024. The loan paid off, in full, on January 7, 2025. As of the date of this release, the Bank had no non-performing loans, OREO or loans 30 or more days past due. Based upon our loan trial balance as of the date of this earnings release, the Company expects that there will be no loans 30 or more days past due as of January 31, 2025.

At December 31, 2024, the allowance for loan credit losses was $18.7 million or 1.00% of outstanding loans, net of unearned income, compared to $19.5 million or 1.05% of outstanding loans, net of unearned income, at December 31, 2023. The decrease in the allowance as a percentage of outstanding loans, net of unearned income, resulted from changes in the Company’s loss driver analysis and assumptions, changes in the composition of the loan portfolio, improved economic forecasts used in the quantitative portion of the model and considerations of qualitative factors combined with the continued strong credit performance of our loan portfolio segments.

At December 31, 2024, the allowance for credit losses on unfunded loan commitments was $1.1 million compared to $0.6 million at December 31, 2023. The increase in the allowance for credit losses on unfunded loan commitments was primarily the result of increases in unfunded loan commitments.

The Company did not have an allowance for credit losses on held-to-maturity securities as of December 31, 2024 or December 31, 2023. As of December 31, 2024, 93.4% of our held-to-maturity portfolio carried the implied guarantee of the United States Government or one of its agencies.

The Company’s owner occupied and non-owner occupied CRE portfolios continue to be of sound credit quality. The following table provides a detailed breakout of the two aforementioned segments as of December 31, 2024, demonstrating their strong debt-service-coverage and loan-to-value ratios.

Commercial Real Estate
	Owner Occupied								Non-owner Occupied
Asset Class	Weighted Average Loan-to-Value(1)		Weighted Average Debt Service Coverage Ratio(2)		Number of Total Loans			Principal Balance(3) (Dollars in thousands)	Weighted Average Loan-to-Value(1)		Weighted Average Debt Service Coverage Ratio(2)		Number of Total Loans			Principal Balance(3) (Dollars in thousands)
Warehouse & Industrial	49.8	%	3.5	x	53		$	66,679	50.1	%	2.6	x	45		$	115,497
Office	57.6	%	3.7	x	137			83,161	47.7	%	2.0	x	56			111,788
Retail	57.1	%	3.5	x	40			69,597	64.3	%	1.9	x	146			455,534
Church	27.7	%	2.6	x	18			30,918	- -		- -		- -			- -
Hotel/Motel	- -		- -		- -			- -	59.7	%	1.6	x	9			52,429
Other(4)	40.5	%	3.6	x	37			78,666	53.2	%	1.9	x	8			21,925
Total					285		$	329,021					264		$	757,173

__________________________
(1)		Loan-to-value is determined at origination date and is divided by principal balance as of December 31, 2024.
(2)		The debt service coverage ratio (“DSCR”) is calculated from the primary source of repayment for the loan. Owner occupied DSCR’s are derived from cash flows from the owner occupant’s business, property and their guarantors, while non-owner occupied DSCR’s are derived from the net operating income of the property.
(3)		Principal balance excludes deferred fees or costs.
(4)		Other asset class is primarily comprised of schools, daycares and country clubs.

Income Statement Review

Quarterly Results

The Company reported net income of $4.8 million for the fourth quarter of 2024, an increase of $274 thousand or 6.1% when compared to the fourth quarter of 2023.

Net interest income for the fourth quarter of 2024 increased $2.0 million or 17.0% compared to the fourth quarter of 2023, driven primarily by the increase in yield on interest-earning assets, the increase in non-interest bearing deposit balances, and the decrease in interest-bearing deposit balances. The annualized net interest margin and tax-equivalent net interest margin (Non-GAAP) for the three months ended December 31, 2024 were both 2.52%, as compared to 2.11% and 2.12%, respectively, for the same period in the prior year. The increase in net interest margin was primarily due to the increase in yields on the Company’s interest-earning assets coupled with a decrease in cost of interest-bearing liabilities.

The yield on interest earning assets was 5.01% for the fourth quarter of 2024 compared to 4.68% for the same period in 2023. The increase in yield on interest earning assets was primarily due to higher yields on the Company’s loan portfolio as a result of repricing of assets subsequent to the fourth quarter of 2023 and certain prepayment penalties. The cost of interest-bearing liabilities was 3.62% for the fourth quarter of 2024 compared to 3.64% for the same quarter in the prior year. The decrease in the cost of interest-bearing liabilities was primarily due to the decrease in the cost of interest-bearing deposits.

The Company recorded a $298 thousand provision for credit losses for the fourth quarter of 2024 compared to a release of provision for credit losses of $781 thousand for the fourth quarter of 2023. The provision for credit losses during the fourth quarter of 2024 was primarily a result of growth in the loan portfolio of $29.6 million during the quarter.

Non-interest income was $281 thousand for the fourth quarter of 2024 compared to $624 thousand for the fourth quarter of 2023. The decrease in non-interest income of $343 thousand was primarily attributable to a decrease of $267 thousand due to unfavorable mark-to-market adjustments on investments related to the Company’s nonqualified deferred compensation plan (“NQDC”) and a $70 thousand decrease in gains recorded on the sale of the guaranteed portion of SBA 7(a) loans due to decreased sale activity.

Non-interest expense increased $391 thousand or 5.2% during the fourth quarter of 2024 compared to the fourth quarter of 2023. The increase was primarily due to increases in salary and employee benefit expense and other expense, partially offset by lower occupancy expense. The increase was also attributable to franchise tax fees, professional fees, marketing fees and data processing expense. The increase in professional fees was due to increased contract costs and services. The increase in data processing fees was primarily due to contractual increases and volume-based activity. The decrease in occupancy expense was due to renegotiating an office lease. The Company continues to analyze cost savings opportunities on existing leases and material contracts.

For the three months ended December 31, 2024, annualized non-interest expense to average assets was 1.41% compared to 1.31% for the three months ended December 31 2023. The increase was primarily due to lower average assets when comparing the two periods.

For the three months ended December 31, 2024, the annualized efficiency ratio was 55.4% compared to 59.7% for the three months ended December 31, 2023. The decrease was primarily due to an increase in net interest income.

Year-End Results

The Company reported net income of $17.1 million for the twelve months ended December 31, 2024, an increase of $12.0 million when compared to net income of $5.2 million for the twelve months ended December 31, 2023. This increase was primarily attributable to the previously disclosed restructuring of the Company’s securities portfolio and surrender of bank owned life insurance (“BOLI”) in July 2023, which resulted in a non-recurring, after tax loss of $14.6 million (the “Restructuring”). Core net income (Non-GAAP), which excludes the impact of the Restructuring, was $19.8 million for the twelve months ended December 31, 2023.

Net interest income for the twelve months ended December 31, 2024 increased $0.6 million or 1.1% compared to the same period of 2023, driven primarily by the increase in yield of interest-bearing assets outpacing the increase in cost on interest-earning liabilities. The yield on interest earning assets was 4.92% for the twelve months ended December 31, 2024 compared to 4.41% for the same period in 2023. The increase in yield on interest earning assets was primarily due to higher yields on the Company’s loans and interest-bearing deposits in banks as a result of elevated interest rates and repricing of assets subsequent to the fourth quarter of 2023. The cost of interest-bearing liabilities was 3.78% for the twelve months ended December 31, 2024 compared to 3.08% for the twelve months ended December 31, 2023. The increase in the cost of interest-bearing liabilities was primarily due to a 71 basis points 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 since the fourth quarter of 2023. The annualized net interest margin and tax-equivalent net interest margin (Non-GAAP) for the twelve month ended December 31, 2024 were both 2.28%, as compared to 2.20% and 2.21%, respectively, for the same period in the prior year. The increase in net interest margin was primarily due to the increase in yields on the Company’s interest-earning assets outpacing the increase in cost of interest-bearing deposits.

The Company recorded a $0.4 million release of provision for credit losses for the twelve months ended December 31, 2024 compared to $3.3 million release of provision for credit losses for the twelve months ended December 31, 2023. The release of provision for credit losses during the twelve months ended December 31, 2024 was primarily a result of changes in the composition and volume of the loan portfolio, improved economic forecasts used in the quantitative portion of the model and considerations of qualitative factors combined with the continued strong credit performance of our loan portfolio segments.

Non-interest income was $2.3 million for the twelve months ended December 31, 2024 compared to a loss of $14.9 million for the twelve months ended December 31, 2023. Core non-interest income (Non-GAAP), defined as reported non-interest income excluding the impact of the Restructuring, was $2.2 million for the twelve months ended December 31, 2023.

Non-interest expense increased $994 thousand or 3.2% during the twelve months ended December 31, 2024 compared to the same period in 2023. As previously disclosed, the increase was primarily due to the non-recurring $322 thousand reversal of a litigation reserve during the third quarter of 2023 and non-recurring expenses totaling $138 thousand incurred during the first quarter of 2024. The first quarter 2024 non-recurring expenses were incurred in connection with a strategic opportunity that was explored and ultimately did not materialize. Excluding the effects of the $322 thousand reversal in 2023 and non-recurring expenses totaling $138 thousand incurred during 2024, adjusted non-interest expense increased $535 thousand or 1.6% during the twelve months ended December 31, 2024 when compared to the twelve months ended December 31, 2023. The increase was also due to increases in professional fees and data processing expense, partially offset by lower salaries and employee benefit expense. The increase in professional fees was due to increased contract costs and services. The increase in data processing fees was primarily due to contractual increases and volume based activity. The decrease in salaries and employee benefits was due to lower incentive accruals and higher direct loan origination costs when compared to the same period of the prior year, partially offset by higher deferred compensation expense as a result of mark-to-market fluctuations on the Company’s NQDC.

For the twelve months ended December 31, 2024, annualized non-interest expense to average assets was 1.41% compared to 1.33% for the twelve months ended December 31, 2023. The increase was primarily due to higher reported non-interest expense of $994 thousand and lower average assets when comparing the two periods.

For the twelve months ended December 31, 2024, the annualized efficiency ratio was 59.7% compared to 86.7% for the twelve months ended December 31, 2023. The decrease was primarily due to the previously disclosed Restructuring in July 2023. The annualized core efficiency ratio (Non-GAAP) was 59.7% for the twelve months ended December 31, 2024, compared to 58.5% for the twelve months ended December 31, 2023. The increase in core efficiency ratio was primarily due to a decrease in net interest income.

Explanation of Non-GAAP Financial Measures

This release contains financial information determined by methods other than in accordance with GAAP. Management believes that the supplemental Non-GAAP information provides a better comparison of period-to-period operating performance and the impact of non-recurring expenses and unrealized losses in the Company’s bond portfolio on the Bank’s regulatory capital ratios. Additionally, the Company believes this information is utilized by regulators and market analysts to evaluate a company’s financial condition and therefore, such information is useful to investors. Non-GAAP measures used in this release consist of the following:

• Tax-equivalent net interest margin reflects adjustments for differences in tax treatment of interest income sources;
• Adjusted Bank regulatory capital ratios in the hypothetical scenario where the entire bond portfolio was sold at fair market value and any losses realized;
• Pre-tax, pre-provision earnings excludes income tax expense and the provision for (recovery of) credit losses; and
• Core non-interest income, income before taxes, income tax expense, net income, earnings per share (basic and diluted), return on average assets (annualized), return on average equity (annualized), non-interest income as a percentage of average assets (annualized) and efficiency ratio excluding the impact of losses recognized in July 2023 on the sale of available-for-sale securities and taxes paid on the early surrender of BOLI policies in the Restructuring.

These disclosures should not be viewed as a substitute for, or more important than, financial results in accordance with GAAP, nor are they necessarily comparable to Non-GAAP performance measures which may be presented by other companies. Please refer to the Reconciliation of Certain Non-GAAP Financial Measures table and Average Balance Sheets, Interest and Rates tables for the respective periods for a reconciliation of these Non-GAAP measures to the most directly comparable GAAP measure.

About John Marshall Bancorp, Inc.

John Marshall Bancorp, Inc. is the bank holding company for John Marshall Bank. The Bank is 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. The Bank is dedicated to providing exceptional value, personalized service and convenience to local businesses and professionals in the Washington, D.C. Metropolitan 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.

Cautionary Note Regarding Forward-Looking Statements

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. Our 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 the Bank include, but are not limited to, the following: the concentration of our business in the Washington, D.C. metropolitan area and the effect of changes in the economic, political and environmental conditions on this market; adequacy of our allowance for loan credit losses; allowance for unfunded commitments credit losses, and allowance for credit losses associated with our held-to-maturity and available-for-sale securities portfolios; deterioration of our asset quality; future performance of our loan portfolio with respect to recently originated loans; the level of prepayments on loans and mortgage-backed securities; liquidity, interest rate and operational risks associated with our business; changes in our financial condition or results of operations that reduce capital; our ability to maintain existing deposit relationships or attract new deposit relationships; changes in consumer spending, borrowing and savings habits; inflation and changes in interest rates that may reduce our margins or reduce the fair value of financial instruments; changes in the 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; additional risks related to new lines of business, products, product enhancements or services; increased competition with other financial institutions and fintech companies; adverse changes in the securities markets; changes in the financial condition or future prospects of issuers of securities that we own; our ability to maintain an effective risk management framework; changes in laws or government regulations or policies affecting financial institutions, including changes in regulatory structure and in regulatory fees and capital requirements; compliance with legislative or regulatory requirements; results of examination of us by our regulators, including the possibility that our regulators may require us to increase our allowance for credit losses or to write-down assets or take similar actions; potential claims, damages, and fines related to litigation or government actions; the effectiveness of our internal controls over financial reporting and our ability to remediate any future material weakness in our internal controls over financial reporting; geopolitical conditions, including acts or threats of terrorism and/or military conflicts, or actions taken by the U.S. or other governments in response to acts or threats of terrorism and/or military conflicts, negatively impacting business and economic conditions in the U.S. and abroad; the effects of weather-related or natural disasters, which may negatively affect our operations and/or our loan portfolio and increase our cost of conducting business; public health events (such as the COVID-19 pandemic) and governmental and societal responses thereto; technological risks and developments, and cyber threats, attacks, or events; the additional requirements of being a public company; changes in accounting policies and practices; our ability to successfully capitalize on growth opportunities; our ability to retain key employees; deteriorating economic conditions, either nationally or in our market area, including higher unemployment and lower real estate values; implications of our status as a smaller reporting company and as an emerging growth company; and other factors discussed in the Company’s reports (such as our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K) filed with the Securities and Exchange Commission. 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,
		2024			2023			2024			2023
Selected Balance Sheet Data
Cash and cash equivalents		$	122,469		$	99,005		$	122,469		$	99,005
Total investment securities			232,732			273,302			232,732			273,302
Loans, net of unearned income			1,872,173			1,859,967			1,872,173			1,859,967
Allowance for loan credit losses			18,715			19,543			18,715			19,543
Total assets			2,234,947			2,242,549			2,234,947			2,242,549
Non-interest bearing demand deposits			433,288			411,374			433,288			411,374
Interest bearing deposits			1,459,127			1,495,226			1,459,127			1,495,226
Total deposits			1,892,415			1,906,600			1,892,415			1,906,600
Federal funds purchased			- -			10,000			- -			10,000
Federal Home Loan Bank advances			56,000			- -			56,000			-
Federal Reserve Bank borrowings			- -			54,000			- -			54,000
Shareholders' equity			246,614			229,914			246,614			229,914
Summary Results of Operations
Interest income		$	27,995		$	26,598		$	110,133		$	100,770
Interest expense			13,929			14,571			59,086			50,286
Net interest income			14,066			12,027			51,047			50,484
Provision for (recovery of) credit losses			298			(781)			(370)			(3,252)
Net interest income after provision for (recovery of) credit losses			13,768			12,808			51,417			53,736
Non-interest income (loss)			281			624			2,271			(14,940)
Core non-interest income(1)			281			624			2,271			2,174
Non-interest expense			7,945			7,554			31,809			30,815
Income before income taxes			6,104			5,878			21,879			7,981
Core income before income taxes(1)			6,104			5,878			21,879			25,095
Net income			4,776			4,502			17,121			5,158
Core net income(1)			4,776			4,502			17,121			19,779
Per Share Data and Shares Outstanding
Earnings per share - basic		$	0.34		$	0.32		$	1.20		$	0.36
Core earnings per share - basic(1)		$	0.34		$	0.32		$	1.20		$	1.40
Earnings per share - diluted		$	0.33		$	0.32		$	1.20		$	0.36
Core earnings per share - diluted(1)		$	0.33		$	0.32		$	1.20		$	1.39
Book value per share		$	17.28		$	16.25		$	17.28		$	16.25
Weighted average common shares (basic)			14,196,309			14,082,762			14,172,166			14,115,492
Weighted average common shares (diluted)			14,224,287			14,145,607			14,206,109			14,185,760
Common shares outstanding at end of period			14,269,469			14,148,533			14,269,469			14,148,533
Performance Ratios
Return on average assets (annualized)			0.85	%		0.78	%		0.76	%		0.22	%
Core return on average assets (annualized)(1)			0.85	%		0.78	%		0.76	%		0.85	%
Return on average equity (annualized)			7.71	%		7.91	%		7.16	%		2.32	%
Core return on average equity (annualized)(1)			7.71	%		7.91	%		7.16	%		8.91	%
Net interest margin			2.52	%		2.12	%		2.28	%		2.20	%
Tax-equivalent net interest margin (Non-GAAP)			2.52	%		2.12	%		2.28	%		2.21	%
Non-interest income (loss) as a percentage of average assets (annualized)			0.05	%		0.11	%		0.10	%		(0.64)	%
Core non-interest income as a percentage of average assets (annualized)(1)			0.05	%		0.11	%		0.10	%		0.09	%
Non-interest expense to average assets (annualized)			1.41	%		1.31	%		1.41	%		1.33	%
Efficiency ratio			55.4	%		59.7	%		59.7	%		86.7	%
Core efficiency ratio(1)			55.4	%		59.7	%		59.7	%		58.5	%
Asset Quality
Non-performing assets to total assets			0.45	%		- -	%		0.45	%		- -	%
Non-performing loans to total loans			0.53	%		- -	%		0.53	%		- -	%
Allowance for loan credit losses to non-performing loans			N/M			N/M			N/M			N/M
Allowance for loan credit losses to total loans			1.00	%		1.05	%		1.00	%		1.05	%
Net charge-offs (recoveries) to average loans (annualized)			0.00	%		0.00	%		0.00	%		0.00	%
Loans 30-89 days past due and accruing interest		$	- -		$	- -		$	- -		$	- -
90 days past due and still accruing interest			9,978			- -			9,978			- -
Non-accrual loans			- -			- -			- -			- -
Other real estate owned			- -			- -			- -			- -
Non-performing assets (2)			9,978			- -			9,978			- -
Capital Ratios (Bank Level)
Equity / assets			11.9	%		11.1	%		11.9	%		11.1	%
Total risk-based capital ratio			16.2	%		15.7	%		16.2	%		15.7	%
Tier 1 risk-based capital ratio			15.2	%		14.7	%		15.2	%		14.7	%
Common equity tier 1 ratio			15.2	%		14.7	%		15.2	%		14.7	%
Leverage ratio			12.4	%		11.6	%		12.4	%		11.6	%
Other Information
Number of full time equivalent employees			132			134			132			134
# Full service branch offices			8			8			8			8

__________________________
(1)		Non-GAAP financial measure. Refer to “Reconciliation of Certain Non-GAAP Financial Measures” for further details.
(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.

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
		2024				2024				2023				Months			Year
Assets		(Unaudited)				(Unaudited)				*
Cash and due from banks		$	5,945			$	8,164			$	7,424			(27.2	)%		(19.9	)%
Interest-bearing deposits in banks			116,524				169,063				91,581			(31.1	)%		27.2	%
Securities available-for-sale, at fair value			130,257				144,649				169,993			(9.9	)%		(23.4	)%
Securities held-to-maturity at amortized cost, fair value of $76,270, $79,731, and $79,532 at 12/31/2024, 09/30/2024, and 12/31/2023, respectively.			92,009				92,863				95,505			(0.9	)%		(3.7	)%
Restricted securities, at cost			7,634				7,630				5,012			0.1	%		52.3	%
Equity securities, at fair value			2,832				2,698				2,792			5.0	%		1.4	%
Loans, net of unearned income			1,872,173				1,842,598				1,859,967			1.6	%		0.7	%
Allowance for loan credit losses			(18,715	)			(18,481	)			(19,543	)		1.3	%		(4.2	)%
Net loans			1,853,458				1,824,117				1,840,424			1.6	%		0.7	%
Bank premises and equipment, net			1,318				1,179				1,281			11.8	%		2.9	%
Accrued interest receivable			5,996				5,657				6,110			6.0	%		(1.9	)%
Right of use assets			5,013				3,824				4,176			31.1	%		20.0	%
Other assets			13,961				14,519				18,251			(3.8	)%		(23.5	)%
Total assets		$	2,234,947			$	2,274,363			$	2,242,549			(1.7	)%		(0.3	)%
Liabilities and Shareholders' Equity
Liabilities
Deposits:
Non-interest bearing demand deposits		$	433,288			$	472,422			$	411,374			(8.3	)%		5.3	%
Interest-bearing demand deposits			705,097				685,385				607,971			2.9	%		16.0	%
Savings deposits			44,367				43,779				52,061			1.3	%		(14.8	)%
Time deposits			709,663				734,564				835,194			(3.4	)%		(15.0	)%
Total deposits			1,892,415				1,936,150				1,906,600			(2.3	)%		(0.7	)%
Federal funds purchased			- -				- -				10,000			N/M	%		(100.0	)%
Federal Home Loan Bank advances			56,000				56,000				- -			- -	%		N/M
Federal Reserve Bank borrowings			- -				- -				54,000			N/M	%		(100.0	)%
Subordinated debt, net			24,791				24,770				24,708			0.1	%		0.3	%
Accrued interest payable			2,394				2,304				4,559			3.9	%		(47.5	)%
Lease liabilities			5,369				4,090				4,446			31.3	%		20.8	%
Other liabilities			7,364				7,931				8,322			(7.1	)%		(11.5	)%
Total liabilities			1,988,333				2,031,245				2,012,635			(2.1	)%		(1.2	)%
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, 14,269,469 at 12/31/24 including 54,388 unvested shares, issued and outstanding, 14,238,677 at 9/30/2024 including 45,753 unvested shares, and issued and outstanding, 14,148,533 at 12/31/2023 including 47,318 unvested shares			142				142				141			- -	%		0.7	%
Additional paid-in capital			97,173				97,017				95,636			0.2	%		1.6	%
Retained earnings			159,951				155,174				146,388			3.1	%		9.3	%
Accumulated other comprehensive loss			(10,652	)			(9,215	)			(12,251	)		15.6	%		(13.1	)%
Total shareholders' equity			246,614				243,118				229,914			1.4	%		7.3	%
Total liabilities and shareholders' equity		$	2,234,947			$	2,274,363			$	2,242,549			(1.7	)%		(0.3	)%
* Derived from audited consolidated financial statements.

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
		2024				2023				% Change			2024				2023				% Change
		(Unaudited)				(Unaudited)							(Unaudited)				(Unaudited)
Interest and Dividend Income
Interest and fees on loans		$	25,044			$	23,080			8.5	%		$	96,332			$	86,435			11.5	%
Interest on investment securities, taxable			1,091				1,310			(16.7	)%			4,692				7,206			(34.9	)%
Interest on investment securities, tax-exempt			9				9			0.0	%			36				53			(32.1	)%
Dividends			128				78			64.1	%			391				300			30.3	%
Interest on deposits in other banks			1,723				2,121			(18.8	)%			8,682				6,776			28.1	%
Total interest and dividend income			27,995				26,598			5.3	%			110,133				100,770			9.3	%
Interest Expense
Deposits			13,008				13,577			(4.2	)%			54,492				47,168			15.5	%
Federal funds purchased			- -				5			(100.0	)%			2				15			(86.7	)%
Federal Home Loan Bank advances			572				- -			N/M				745				67			N/M
Federal Reserve Bank borrowings			- -				640			(100.0	)%			2,451				1,640			49.5	%
Subordinated debt			349				349			--	%			1,396				1,396			--	%
Total interest expense			13,929				14,571			(4.4	)%			59,086				50,286			17.5	%
Net interest income			14,066				12,027			17.0	%			51,047				50,484			1.1	%
Provision for (recovery of) Credit Losses			298				(781	)		(138.2	)%			(370	)			(3,252	)		(88.6	)%
Net interest income after provision for (recovery of) credit losses			13,768				12,808			7.5	%			51,417				53,736			(4.3	)%
Non-interest Income
Service charges on deposit accounts			89				91			(2.2	)%			349				330			5.8	%
Bank owned life insurance			- -				- -			- -				- -				224			N/M
Other service charges and fees			181				161			12.4	%			655				838			(21.8	)%
Losses on sale of available-for-sale securities			- -				- -			- -	%			- -				(17,316	)		N/M
Insurance commissions			59				76			(22.4	)%			416				386			7.8	%
Gain on sale of government guaranteed loans			11				81			(86.4	)%			520				131			N/M
Non-qualified deferred compensation plan asset gains (loss), net			(62	)			205			(130.2	)%			236				317			(25.6	)%
Other income			3				10			(70.0	)%			95				150			(36.7	)%
Total non-interest income (loss)			281				624			(55.0	)%			2,271				(14,940	)		(115.2	)
Non-interest Expenses
Salaries and employee benefits			4,658				4,507			3.4	%			19,240				19,436			(1.0	)%
Occupancy expense of premises			417				448			(6.9	)%			1,760				1,811			(2.8	)%
Furniture and equipment expenses			319				296			7.8	%			1,220				1,178			3.6	%
Other expenses			2,551				2,303			10.8	%			9,589				8,390			14.3	%
Total non-interest expenses			7,945				7,554			5.2	%			31,809				30,815			3.2	%
Income before income taxes			6,104				5,878			3.8	%			21,879				7,981			174.1	%
Income Tax Expense			1,328				1,376			(3.5	)%			4,758				2,823			68.5	%
Net income		$	4,776			$	4,502			6.1	%		$	17,121			$	5,158			231.9	%
Earnings Per Share
Basic		$	0.34			$	0.32			6.3	%		$	1.20			$	0.36			233.3	%
Diluted		$	0.33			$	0.32			3.1	%		$	1.20			$	0.36			233.3	%

John Marshall Bancorp, Inc.
Historical Trends - Quarterly Financial Data (Unaudited)
(Dollar amounts in thousands, except per share data)
		2024																2023
		December 31				September 30				June 30					March 31			December 31				September 30				June 30				March 31
Profitability for the Quarter:
Interest income		$	27,995			$	28,428			$	26,791			$	26,919			$	26,598			$	26,263			$	24,455			$	23,453
Interest expense			13,929				15,272				14,710				15,175				14,571				14,284				12,446				8,984
Net interest income			14,066				13,156				12,081				11,744				12,027				11,979				12,009				14,469
Provision for (recovery of) credit losses			298				400				(292	)			(776	)			(781	)			(829	)			(868	)			(774	)
Non-interest income (loss)			281				617				555				818				624				(16,815	)			685				566
Non-interest expenses			7,945				8,031				7,909				7,924				7,554				7,660				7,831				7,770
Income (loss) before income taxes			6,104				5,342				5,019				5,414				5,878				(11,667	)			5,731				8,039
Income tax expense (benefit)			1,328				1,107				1,114				1,210				1,376				(1,530	)			1,241				1,735
Net income (loss)		$	4,776			$	4,235			$	3,905			$	4,204			$	4,502			$	(10,137	)		$	4,490			$	6,304
Financial Performance:
Return on average assets (annualized)			0.85	%			0.73	%			0.70	%			0.75	%			0.78	%			(1.73	)%			0.77	%			1.10	%
Return on average equity (annualized)			7.71	%			7.00	%			6.68	%			7.23	%			7.91	%			(18.24	)%			8.13	%			11.83	%
Net interest margin			2.52	%			2.30	%			2.19	%			2.10	%			2.11	%			2.07	%			2.09	%			2.56	%
Tax-equivalent net interest margin (Non-GAAP)			2.52	%			2.30	%			2.19	%			2.11	%			2.12	%			2.08	%			2.10	%			2.57	%
Non-interest income (loss) as a percentage of average assets (annualized)			0.05	%			0.11	%			0.10	%			0.15	%			0.11	%			(2.86	)%			0.12	%			0.10	%
Non-interest expense to average assets (annualized)			1.41	%			1.39	%			1.42	%			1.41	%			1.31	%			1.30	%			1.34	%			1.35	%
Efficiency ratio			55.4	%			58.3	%			62.6	%			63.1	%			59.7	%			(158.4	)%			61.7	%			51.7	%
Per Share Data:
Earnings (loss) per share - basic		$	0.34			$	0.30			$	0.27			$	0.30			$	0.32			$	(0.72	)		$	0.32			$	0.45
Earnings (loss) per share - diluted		$	0.33			$	0.30			$	0.27			$	0.30			$	0.32			$	(0.72	)		$	0.32			$	0.44
Book value per share		$	17.28			$	17.07			$	16.54			$	16.51			$	16.25			$	15.61			$	15.50			$	15.63
Dividends declared per share		$	- -			$	- -			$	0.25			$	- -			$	- -			$	- -			$	0.22			$	- -
Weighted average common shares (basic)			14,196,309				14,187,691				14,173,245				14,130,986				14,082,762				14,080,026				14,077,658				14,067,047
Weighted average common shares (diluted)			14,224,287				14,214,586				14,200,171				14,181,254				14,145,607				14,080,026				14,143,253				14,156,724
Common shares outstanding at end of period			14,269,469				14,238,677				14,229,853				14,209,606				14,148,533				14,126,084				14,126,138				14,125,208
Non-interest Income:
Service charges on deposit accounts		$	89			$	84			$	88			$	88			$	91			$	85			$	82			$	72
Bank owned life insurance			- -				- -				- -				- -				- -				23				101				100
Other service charges and fees			181				160				165				149				161				160				314				203
Losses on sale of available-for-sale securities			- -				- -				- -				- -				- -				(17,114	)			- -				(202	)
Insurance commissions			59				64				40				252				76				54				50				206
Gain on sale of government guaranteed loans			11				160				216				133				81				27				23				- -
Non-qualified deferred compensation plan asset gains (losses), net			(62	)			139				35				124				205				(60	)			83				89
Other income			3				10				11				72				10				10				32				98
Total non-interest income (loss)		$	281			$	617			$	555			$	818			$	624			$	(16,815	)		$	685			$	566
Non-interest Expenses:
Salaries and employee benefits		$	4,658			$	4,897			$	4,875			$	4,810			$	4,507			$	5,052			$	4,965			$	4,912
Occupancy expense of premises			417				444				448				451				448				445				448				470
Furniture and equipment expenses			319				304				301				297				296				282				304				296
Other expenses			2,551				2,386				2,285				2,366				2,303				1,881				2,114				2,092
Total non-interest expenses		$	7,945			$	8,031			$	7,909			$	7,924			$	7,554			$	7,660			$	7,831			$	7,770
Balance Sheets at Quarter End:
Total loans, net of unearned income		$	1,872,173			$	1,842,598			$	1,827,187			$	1,825,931			$	1,859,967			$	1,820,132			$	1,769,801			$	1,771,272
Allowance for loan credit losses			(18,715	)			(18,481	)			(18,433	)			(18,671	)			(19,543	)			(20,036	)			(20,629	)			(21,619	)
Investment securities			232,732				247,840				249,582				261,341				273,302				272,881				429,954				445,785
Interest-earning assets			2,221,429				2,259,501				2,249,350				2,234,592				2,224,850				2,278,027				2,315,368				2,312,404
Total assets			2,234,947				2,274,363				2,269,757				2,251,837				2,242,549				2,298,202				2,364,250				2,351,307
Total deposits			1,892,415				1,936,150				1,912,840				1,900,990				1,906,600				1,981,623				2,046,309				2,088,642
Total interest-bearing liabilities			1,539,918				1,544,498				1,577,420				1,598,050				1,583,934				1,622,430				1,691,044				1,665,837
Total shareholders' equity			246,614				243,118				235,346				234,550				229,914				220,567				218,970				220,823
Quarterly Average Balance Sheets:
Total loans, net of unearned income		$	1,838,526			$	1,818,472			$	1,810,722			$	1,835,966			$	1,837,855			$	1,790,720			$	1,767,831			$	1,772,922
Investment securities			243,329				249,354				255,940				270,760				273,264				310,407				441,778				463,254
Interest-earning assets			2,223,725				2,277,427				2,222,658				2,247,620				2,260,356				2,301,642				2,305,050				2,295,677
Total assets			2,238,062				2,292,385				2,239,261				2,264,544				2,280,060				2,331,403				2,344,712				2,334,695
Total deposits			1,893,976				1,939,601				1,883,010				1,914,173				1,956,039				2,012,934				2,051,702				2,066,139
Total interest-bearing liabilities			1,532,452				1,573,631				1,551,953				1,600,197				1,587,179				1,660,980				1,667,597				1,621,131
Total shareholders' equity			246,525				240,609				235,136				233,952				225,718				220,473				221,608				220,282
Financial Measures:
Average equity to average assets			11.0	%			10.5	%			10.5	%			10.3	%			9.9	%			9.5	%			9.5	%			9.4	%
Investment securities to earning assets			10.5	%			11.0	%			11.1	%			11.7	%			12.3	%			12.0	%			18.6	%			19.3	%
Loans to earning assets			84.3	%			81.5	%			81.2	%			81.7	%			83.6	%			79.9	%			76.4	%			76.6	%
Loans to assets			83.8	%			81.0	%			80.5	%			81.1	%			82.9	%			79.2	%			74.9	%			75.3	%
Loans to deposits			98.9	%			95.2	%			95.5	%			96.1	%			97.6	%			91.9	%			86.5	%			84.8	%
Capital Ratios (Bank Level):
Equity / assets			11.9	%			11.6	%			11.4	%			11.3	%			11.1	%			10.6	%			10.2	%			10.3	%
Total risk-based capital ratio			16.2	%			16.3	%			16.4	%			16.1	%			15.7	%			15.7	%			16.1	%			16.1	%
Tier 1 risk-based capital ratio			15.2	%			15.3	%			15.4	%			15.1	%			14.7	%			14.6	%			15.0	%			14.9	%
Common equity tier 1 ratio			15.2	%			15.3	%			15.4	%			15.1	%			14.7	%			14.6	%			15.0	%			14.9	%
Leverage ratio			12.4	%			11.9	%			12.2	%			11.8	%			11.6	%			11.3	%			11.6	%			11.5	%

John Marshall Bancorp, Inc.
Loan, Deposit and Borrowing Detail (Unaudited)
(Dollar amounts in thousands)
	2024																				2023
	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	$	47,612		2.5	%	$	39,741		2.2	%	$	41,806		2.3	%	$	42,779		2.3	%	$	45,073		2.4	%	$	37,793		2.1	%	$	40,156		2.3	%	$	41,204		2.3	%
Commercial PPP loans		124		0.0	%		126		0.0	%		127		0.0	%		129		0.0	%		131		0.0	%		132		0.0	%		133		0.0	%		135		0.0	%
Commercial owner-occupied real estate loans		329,222		17.6	%		343,906		18.7	%		349,644		19.2	%		356,335		19.6	%		360,102		19.4	%		363,017		20.0	%		360,859		20.4	%		363,495		20.6	%
Total business loans		376,958		20.2	%		383,773		20.9	%		391,577		21.5	%		399,243		21.9	%		405,306		21.8	%		400,942		22.1	%		401,148		22.7	%		404,834		22.9	%
Investor real estate loans		757,173		40.5	%		726,771		39.5	%		722,419		39.6	%		692,418		38.0	%		689,556		37.1	%		683,686		37.6	%		654,623		37.0	%		660,740		37.4	%
Construction & development loans		164,988		8.8	%		161,466		8.8	%		138,744		7.6	%		151,476		8.3	%		180,922		9.8	%		179,570		9.9	%		179,656		10.2	%		179,606		10.2	%
Multi-family loans		94,695		5.1	%		91,426		5.0	%		91,925		5.1	%		94,719		5.2	%		96,458		5.2	%		86,366		4.8	%		86,061		4.9	%		88,670		5.0	%
Total commercial real estate loans		1,016,856		54.4	%		979,663		53.3	%		953,088		52.3	%		938,613		51.5	%		966,936		52.1	%		949,622		52.3	%		920,340		52.1	%		929,016		52.6	%
Residential mortgage loans		472,932		25.3	%		473,787		25.8	%		476,764		26.2	%		482,254		26.5	%		482,182		26.1	%		464,509		25.7	%		443,305		25.2	%		433,076		24.5	%
Consumer loans		906		0.1	%		877		0.0	%		876		0.0	%		772		0.0	%		560		0.0	%		467		0.0	%		646		0.0	%		324		0.0	%
Total loans	$	1,867,652		100.0	%	$	1,838,100		100.0	%	$	1,822,305		100.0	%	$	1,820,882		100.0	%	$	1,854,984		100.0	%	$	1,815,540		100.0	%	$	1,765,439		100.0	%	$	1,767,250		100.0	%
Less: Allowance for loan credit losses		(18,715	)				(18,481	)				(18,433	)				(18,671	)				(19,543	)				(20,036	)				(20,629	)				(21,619	)
Net deferred loan costs (fees)		4,521					4,498					4,882					5,049					4,983					4,592					4,362					4,022
Net loans	$	1,853,458				$	1,824,117				$	1,808,754				$	1,807,260				$	1,840,424				$	1,800,096				$	1,749,172				$	1,749,653
	2024																				2023
	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	$	433,288		22.9	%	$	472,422		24.4	%	$	437,169		22.8	%	$	404,669		21.3	%	$	411,374		21.6	%	$	437,880		22.1	%	$	433,931		21.2	%	$	447,450		21.4	%
Interest-bearing demand deposits:
NOW accounts(1)		355,840		18.8	%		324,660		16.8	%		321,702		16.8	%		318,445		16.8	%		297,321		15.6	%		345,522		17.4	%		311,225		15.2	%		284,872		13.7	%
Money market accounts(1)		349,257		18.5	%		360,725		18.6	%		346,249		18.1	%		326,135		17.1	%		310,650		16.3	%		330,297		16.6	%		341,413		16.7	%		392,962		18.8	%
Savings accounts		44,367		2.3	%		43,779		2.3	%		45,884		2.4	%		50,664		2.7	%		52,061		2.8	%		57,408		3.0	%		68,013		3.4	%		81,150		3.9	%
Certificates of deposit
$250,000 or more		315,549		16.7	%		334,591		17.3	%		339,908		17.8	%		355,766		18.7	%		357,768		18.7	%		364,805		18.4	%		376,899		18.4	%		338,824		16.2	%
Less than $250,000		83,060		4.4	%		86,932		4.5	%		91,258		4.8	%		99,694		5.2	%		101,567		5.3	%		103,600		5.2	%		105,956		5.2	%		94,429		4.5	%
QwickRate® certificates of deposit		249		0.0	%		4,119		0.2	%		4,119		0.2	%		5,117		0.3	%		9,686		0.5	%		11,526		0.6	%		12,772		0.6	%		16,952		0.8	%
IntraFi® certificates of deposit		34,288		1.8	%		32,801		1.7	%		32,922		1.7	%		34,443		1.8	%		45,748		2.4	%		41,659		2.1	%		49,729		2.4	%		53,178		2.5	%
Brokered deposits		276,517		14.6	%		276,121		14.3	%		293,629		15.4	%		306,057		16.1	%		320,425		16.8	%		288,926		14.6	%		346,371		16.9	%		378,825		18.2	%
Total deposits	$	1,892,415		100.0	%	$	1,936,150		100.0	%	$	1,912,840		100.0	%	$	1,900,990		100.0	%	$	1,906,600		100.0	%	$	1,981,623		100.0	%	$	2,046,309		100.0	%	$	2,088,642		100.0	%
Borrowings
Federal funds purchased	$	- -		0.0	%	$	- -		0.0	%	$	- -		0.0	%	$	- -		0.0	%	$	10,000		11.3	%	$	- -		0.0	%	$	- -		0.0	%	$	- -		0.0	%
Federal Home Loan Bank advances		56,000		69.3	%		56,000		69.3	%		- -		0.0	%		- -		0.0	%		- -		0.0	%		- -		0.0	%		- -		0.0	%		- -		0.0	%
Federal Reserve Bank borrowings		- -		0.0	%		- -		0.0	%		77,000		75.7	%		77,000		75.7	%		54,000		60.9	%		54,000		68.6	%		54,000		68.6	%		- -		0.0	%
Subordinated debt, net		24,791		30.7	%		24,770		30.7	%		24,749		24.3	%		24,729		24.3	%		24,708		27.8	%		24,687		31.4	%		24,666		31.4	%		24,645		100.0	%
Total borrowings	$	80,791		100.0	%	$	80,770		100.0	%	$	101,749		100.0	%	$	101,729		100.0	%	$	88,708		100.0	%	$	78,687		100.0	%	$	78,666		100.0	%	$	24,645		100.0	%
Total deposits and borrowings	$	1,973,206				$	2,016,920				$	2,014,589				$	2,002,719				$	1,995,308				$	2,060,310				$	2,124,975				$	2,113,287
Core customer funding sources (2)	$	1,615,649		82.9	%	$	1,655,910		83.1	%	$	1,615,092		81.2	%	$	1,589,816		80.4	%	$	1,576,489		80.0	%	$	1,681,171		82.6	%	$	1,687,166		80.3	%	$	1,692,865		81.1	%
Wholesale funding sources (3)		332,766		17.1	%		336,240		16.9	%		374,748		18.8	%		388,174		19.6	%		394,111		20.0	%		354,452		17.4	%		413,143		19.7	%		395,777		18.9	%
Total funding sources	$	1,948,415		100.0	%	$	1,992,150		100.0	%	$	1,989,840		100.0	%	$	1,977,990		100.0	%	$	1,970,600		100.0	%	$	2,035,623		100.0	%	$	2,100,309		100.0	%	$	2,088,642		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, Federal Home Loan Bank advances and Federal Reserve Bank borrowings.

John Marshall Bancorp, Inc.
Average Balance Sheets, Interest and Rates (unaudited)
(Dollar amounts in thousands)
		Twelve Months Ended December 31, 2024								Twelve Months Ended December 31, 2023
					Interest Income /			Average					Interest Income /			Average
(Dollars in thousands)		Average Balance			Expense			Rate		Average Balance			Expense			Rate
Assets:
Securities:
Taxable		$	253,421		$	5,083		2.01	%	$	368,922		$	7,506		2.03	%
Tax-exempt(1)			1,379			45		3.26	%		2,351			68		2.89	%
Total securities		$	254,800		$	5,128		2.01	%	$	371,273		$	7,574		2.04	%
Loans, net of unearned income(2):
Taxable			1,807,547			95,770		5.30	%		1,764,315			85,515		4.85	%
Tax-exempt(1)			18,389			712		3.87	%		28,190			1,164		4.13	%
Total loans, net of unearned income		$	1,825,936		$	96,482		5.28	%	$	1,792,505		$	86,679		4.84	%
Interest-bearing deposits in other banks		$	162,165		$	8,682		5.35	%	$	126,623		$	6,776		5.35	%
Total interest-earning assets		$	2,242,901		$	110,292		4.92	%	$	2,290,401		$	101,029		4.41	%
Total non-interest earning assets			15,630								32,430
Total assets		$	2,258,531							$	2,322,831
Liabilities & Shareholders’ Equity:
Interest-bearing deposits
NOW accounts		$	322,028		$	8,848		2.75	%	$	299,468		$	6,804		2.27	%
Money market accounts			342,057			10,707		3.13	%		362,243			10,150		2.80	%
Savings accounts			48,466			664		1.37	%		69,742			831		1.19	%
Time deposits			757,494			34,273		4.52	%		842,121			29,383		3.49	%
Total interest-bearing deposits		$	1,470,045		$	54,492		3.71	%	$	1,573,574		$	47,168		3.00	%
Federal funds purchased			28			2		7.14	%		302			15		4.97	%
Subordinated debt			24,747			1,396		5.64	%		24,664			1,396		5.66	%
Federal Reserve Bank borrowings			51,314			2,451		4.78	%		34,176			1,640		4.80	%
Federal Home Loan Bank advances			18,361			745		4.06	%		1,487			67		4.51	%
Total interest-bearing liabilities		$	1,564,495		$	59,086		3.78	%	$	1,634,203		$	50,286		3.08	%
Demand deposits			437,694								447,804
Other liabilities			17,261								18,791
Total liabilities		$	2,019,450							$	2,100,798
Shareholders’ equity		$	239,081							$	222,033
Total liabilities and shareholders’ equity		$	2,258,531							$	2,322,831
Tax-equivalent net interest income and spread (Non-GAAP)(1)					$	51,206		1.14	%				$	50,743		1.33	%
Less: tax-equivalent adjustment						159								259
Net interest income and spread (GAAP)					$	51,047		1.13	%				$	50,484		1.83	%
Interest income/earning assets								4.91	%							4.40	%
Interest expense/earning assets								2.63	%							2.20	%
Net interest margin								2.28	%							2.20	%
Tax-equivalent interest income/earning assets (Non-GAAP)(1)								4.92	%							4.41	%
Interest expense/earning assets								2.63	%							2.20	%
Tax-equivalent net interest margin (Non-GAAP)(3)								2.28	%							2.21	%

__________________________
(1)		Tax-equivalent income and related measures have 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 $159 thousand and $259 thousand for the twelve months ended December 31, 2024 and December 31, 2023, respectively.
(2)		The Company did not have any loans on non-accrual as of December 31, 2024 and December 31, 2023.
(3)		Tax-equivalent net interest margin adjusts for differences in tax treatment of interest income sources. The entire tax-equivalent adjustment is attributable to interest income on earning assets. Interest expense and the related cost of interest-bearing liabilities and cost of funds ratios are not affected by the tax-equivalent components.

John Marshall Bancorp, Inc.
Average Balance Sheets, Interest and Rates (unaudited)
(Dollar amounts in thousands)
		Three Months Ended December 31, 2024								Three Months Ended December 31, 2023
					Interest Income /			Average					Interest Income /			Average
(Dollars in thousands)		Average Balance			Expense			Rate		Average Balance			Expense			Rate
Assets:
Securities:
Taxable		$	241,950		$	1,219		2.00	%	$	271,884		$	1,388		2.03	%
Tax-exempt(1)			1,379			11		3.17	%		1,380			11		3.16	%
Total securities		$	243,329		$	1,230		2.01	%	$	273,264		$	1,399		2.03	%
Loans, net of unearned income(2):
Taxable			1,821,664			24,913		5.44	%		1,810,046			22,852		5.01	%
Tax-exempt(1)			16,862			166		3.92	%		27,809			289		4.12	%
Total loans, net of unearned income		$	1,838,526		$	25,079		5.43	%	$	1,837,855		$	23,141		5.00	%
Interest-bearing deposits in other banks		$	141,870		$	1,723		4.83	%	$	149,237		$	2,121		5.64	%
Total interest-earning assets		$	2,223,725		$	28,032		5.01	%	$	2,260,356		$	26,661		4.68	%
Total non-interest earning assets			14,337								19,704
Total assets		$	2,238,062							$	2,280,060
Liabilities & Shareholders’ Equity:
Interest-bearing deposits
NOW accounts		$	351,135			2,315		2.62	%	$	323,950		$	2,320		2.84	%
Money market accounts			347,105			2,518		2.89	%		327,198			2,590		3.14	%
Savings accounts			43,720			134		1.22	%		53,331			157		1.17	%
Time deposits			709,713			8,041		4.51	%		803,679			8,510		4.20	%
Total interest-bearing deposits		$	1,451,673		$	13,008		3.56	%	$	1,508,158		$	13,577		3.57	%
Federal funds purchased			—			—		N/M			326			5		6.08	%
Subordinated debt			24,778			349		5.60	%		24,695			349		5.61	%
Federal Reserve Bank borrowings			—			—		N/M	%		54,000			640		4.70	%
Federal Home Loan Bank advances			56,001			572		4.06	%		—			—		NM	%
Total interest-bearing liabilities		$	1,532,452		$	13,929		3.62	%	$	1,587,179		$	14,571		3.64	%
Demand deposits			442,303								447,881
Other liabilities			16,782								19,282
Total liabilities		$	1,991,537							$	2,054,342
Shareholders’ equity		$	246,525							$	225,718
Total liabilities and shareholders’ equity		$	2,238,062							$	2,280,060
Tax-equivalent net interest income and spread (Non-GAAP)(1)					$	14,103		1.39	%				$	12,090		1.04	%
Less: tax-equivalent adjustment						37								63
Net interest income and spread (GAAP)					$	14,066		1.39	%				$	12,027		1.03	%
Interest income/earning assets								5.01	%							4.67	%
Interest expense/earning assets								2.49	%							2.56	%
Net interest margin								2.52	%							2.11	%
Tax-equivalent interest income/earning assets (Non-GAAP)(1)								5.01	%							4.68	%
Interest expense/earning assets								2.49	%							2.56	%
Tax-equivalent net interest margin (Non-GAAP)(3)								2.52	%							2.12	%

__________________________
(1)		Tax-equivalent income and related measures have 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 $37 thousand and $63 thousand for the three months ended December 31, 2024 and December 31, 2023, respectively.
(2)		The Company did not have any loans on non-accrual as of December 31, 2024 and December 31, 2023.
(3)		Tax-equivalent net interest margin adjusts for differences in tax treatment of interest income sources. The entire tax-equivalent adjustment is attributable to interest income on earning assets. Interest expense and the related cost of interest-bearing liabilities and cost of funds ratios are not affected by the tax-equivalent components.

John Marshall Bancorp, Inc.
Reconciliation of Certain Non-GAAP Financial Measures (unaudited)
(Dollar amounts in thousands)
		As of
		December 31, 2024			December 31, 2023
Regulatory Ratios (Bank)
Total risk-based capital (GAAP)		$	295,119		$	282,082
Less: Unrealized losses on available-for-sale securities, net of tax benefit (1)			10,732			12,401
Less: Unrealized losses on held-to-maturity securities, net of tax benefit (1)			12,353			12,469
Adjusted total risk-based capital, excluding unrealized losses on available-for-sale and held-to-maturity securities, net of tax benefit (Non-GAAP)		$	272,034		$	257,212
Tier 1 capital (GAAP)		$	276,468		$	263,637
Less: Unrealized losses on available-for-sale securities, net of tax benefit (1)			10,732			12,401
Less: Unrealized losses on held-to-maturity securities, net of tax benefit (1)			12,353			12,469
Adjusted tier 1 capital, excluding unrealized losses on available-for-sale and held-to-maturity securities, net of tax benefit (Non-GAAP)		$	253,383		$	238,767
Risk weighted assets (GAAP)		$	1,819,888		$	1,794,769
Less: Risk weighted available-for-sale securities			19,623			24,184
Less: Risk weighted held-to-maturity securities			16,462			17,079
Adjusted risk weighted assets, excluding available-for-sale and held-to-maturity securities (Non-GAAP)		$	1,783,803		$	1,753,506
Total average assets for leverage ratio (GAAP)		$	2,235,952		$	2,274,911
Less: Unrealized losses on available-for-sale securities, net of tax benefit (1)			10,732			12,401
Less: Unrealized losses on held-to-maturity securities, net of tax benefit (1)			12,353			12,469
Adjusted total average assets for leverage ratio, excluding available-for-sale and held-to-maturity securities (Non-GAAP)		$	2,212,867		$	2,250,041
Total risk-based capital ratio (2)
Total risk-based capital ratio (GAAP)			16.2	%		15.7	%
Adjusted total risk-based capital ratio (Non-GAAP) (3)			15.3	%		14.7	%
Tier 1 capital ratio (4)
Tier 1 risk-based capital ratio (GAAP)			15.2	%		14.7	%
Adjusted tier 1 risk-based capital ratio (Non-GAAP) (5)			14.2	%		13.5	%
Common equity tier 1 ratio (6)
Common equity tier 1 ratio (GAAP)			15.2	%		14.7	%
Adjusted common equity tier 1 ratio (Non-GAAP) (7)			14.2	%		13.5	%
Leverage ratio (8)
Leverage ratio (GAAP)			12.4	%		11.6	%
Adjusted leverage ratio (Non-GAAP) (9)			11.5	%		10.6	%

__________________________
(1)		Includes tax benefit calculated using the federal statutory tax rate of 21%.
(2)		The total risk-based capital ratio is calculated by dividing total risk-based capital by risk weighted assets.
(3)		The adjusted total risk-based capital ratio is calculated by dividing adjusted total risk-based capital by adjusted risk weighted assets.
(4)		The tier 1 capital ratio is calculated by dividing tier 1 capital by risk weighted assets.
(5)		The adjusted tier 1 capital ratio is calculated by dividing adjusted tier 1 capital by adjusted risk weighted assets.
(6)		The common equity tier 1 ratio is calculated by dividing tier 1 capital by risk weighted assets.
(7)		The adjusted common equity tier 1 ratio is calculated by dividing adjusted tier 1 capital by adjusted risk weighted assets.
(8)		The leverage ratio is calculated by dividing tier 1 capital by total average assets for leverage ratio.
(9)		The adjusted leverage ratio is calculated by dividing adjusted tier 1 capital by adjusted total average assets for leverage ratio.

John Marshall Bancorp, Inc.
Reconciliation of Certain Non-GAAP Financial Measures (unaudited)
(Dollar amounts in thousands, except per share data)
												For the Twelve Months Ended
												December 31, 2023
Non-interest income (loss) (GAAP)												$	(14,940	)
Adjustment: Pre-tax loss recognized on sale of available-for-sale securities													17,114
Core non-interest income (Non-GAAP)												$	2,174
Income (loss) before taxes (GAAP)												$	7,981
Adjustment: Pre-tax loss recognized on sale of available-for-sale securities													17,114
Core income before taxes (Non-GAAP)												$	25,095
Income tax expense (benefit) (GAAP)												$	2,823
Adjustment: Tax and 10% modified endowment contract penalty on early surrender of BOLI policies													(1,101	)
Adjustment: Tax benefit of loss recognized on sale of available-for-sale securities													3,594
Core income tax expense (Non-GAAP)(1)												$	5,316
Net income (loss) (GAAP)												$	5,158
Core net income (Non-GAAP)(2)												$	19,779
Earnings (loss) per share - basic (GAAP)												$	0.36
Core earnings per share - basic (Non-GAAP)(3)												$	1.40
Earnings (loss) per share - diluted (GAAP)												$	0.36
Core earnings per share - diluted (Non-GAAP)(3)												$	1.39
Return on average assets (annualized) (GAAP)													0.22	%
Core return on average assets (annualized) (Non-GAAP)(4)													0.85	%
Return on average equity (annualized) (GAAP)													2.32	%
Core return on average equity (annualized) (Non-GAAP)(5)													8.91	%
Non-interest income (loss) as a percentage of average assets (annualized) (GAAP)													(0.64	)%
Core non-interest income as a percentage of average assets (annualized) (Non-GAAP)(6)													0.09	%
Efficiency ratio (GAAP)													86.7	%
Core efficiency ratio (Non-GAAP)(7)													58.5	%
		For the Three Months Ended
			December 31, 2024			September 30, 2024			December 31, 2023
Pre-tax, pre-provision earnings (Non-GAAP)
Income before income taxes		$	6,104		$	5,342		$	5,878
Adjustment: Provision for (recovery of) credit losses			298			400			(781	)
Pre-tax, pre-provision earnings (Non-GAAP)(8)		$	6,402		$	5,742		$	5,097

__________________________
(1)		Includes tax benefit (expense) calculated using the federal statutory tax rate of 21%.
(2)		Core net income reflects net income adjusted for the non-recurring tax effected loss recognized on the sale of available-for-sale securities in and non-recurring tax expense associated with the surrender of the Company’s BOLI policies in July 2023. It is calculated by subtracting core income tax expense from core income before taxes for each period presented.
(3)		Core earnings per share – basic and core earnings per share – diluted is calculated by dividing core net income by basic weighted average shares outstanding and diluted weighted average shares outstanding, respectively, for each period presented.
(4)		Core return on average assets (annualized) is calculated by dividing annualizing core net income by average assets for each period presented.
(5)		Core return on average equity (annualized) is calculated by dividing annualizing core net income by average equity for each period presented.
(6)		Core non-interest income as a percentage of average assets (annualized) is calculated by dividing annualized core non-interest income by average assets for each period presented.
(7)		Core efficiency ratio is calculated by dividing non-interest expense by the sum of core non-interest income and net interest income for each period presented.
(8)		Pre-tax, pre-provision earnings is calculated by adjusting income before taxes for provision for (recovery of) credit losses.

Category: Earnings

View source version on businesswire.com: https://www.businesswire.com/news/home/20250129836411/en/

Christopher W. Bergstrom, (703) 584-0840

Kent D. Carstater, (703) 289-5922

Source: John Marshall

FAQ

What was JMSB's net interest margin in Q4 2024?

JMSB's net interest margin in Q4 2024 was 2.52%, representing a 22 basis points improvement from Q3 2024 and a 40 basis points improvement from Q4 2023.

How much did JMSB's loan portfolio grow in Q4 2024?

JMSB's loan portfolio grew by $29.6 million or 6.4% annualized during Q4 2024, reaching $1.87 billion.

What was JMSB's book value per share as of December 31, 2024?

JMSB's book value per share was $17.28 as of December 31, 2024, increasing from $16.25 at the end of 2023, representing a 6.3% increase.

How much net income did JMSB report for Q4 2024?

JMSB reported net income of $4.8 million ($0.33 per diluted share) for Q4 2024, compared to $4.2 million in Q3 2024 and $4.5 million in Q4 2023.