John Marshall Bancorp, Inc. Reports Margin Expansion, Pristine Asset Quality, and Strong Core Deposit Growth and Loan Demand
John Marshall Bancorp (Nasdaq: JMSB) reported a net income of $3.9 million ($0.27 per share) for Q2 2024 and $8.1 million ($0.57 per share) for H1 2024. Pre-tax, pre-provision earnings were $4.7 million for Q2 2024. Key highlights include:
- Margin Expansion: Nine basis point increase in net interest margin compared to Q1 2024.
- Net Interest Income Growth: 11.5% annualized growth in Q2 2024.
- Core Deposit Growth: $32.5 million increase in non-interest-bearing deposits.
- Pristine Asset Quality: Nineteenth consecutive quarter with no non-performing loans or charge-offs.
- Loan Portfolio: High-quality with strong debt service coverage ratios.
- Liquidity: Highly liquid with $796.0 million in liquidity as of June 30, 2024.
However, net income decreased by $0.6 million compared to Q2 2023. Total assets were $2.27 billion, with total loans increased by $57.4 million compared to June 2023. Shareholders’ equity increased by 7.5% year-over-year to $235.3 million. The company's capital ratios remain well above regulatory thresholds.
- Net interest income grew 11.5% annualized during Q2 2024.
- Core deposits increased by $32.5 million or 32.3% annualized.
- No non-performing loans or charge-offs for the nineteenth consecutive quarter.
- Total assets were $2.27 billion, with a 3.2% increase in total loans.
- Shareholders' equity increased by 7.5% to $235.3 million year-over-year.
- Highly liquid with $796.0 million in liquidity.
- Net income decreased by $0.6 million compared to Q2 2023.
- Non-interest income decreased by $130 thousand compared to Q2 2023.
- Non-interest expense increased by 1.0% in Q2 2024 compared to Q2 2023.
- Net interest margin for H1 2024 decreased to 2.14% from 2.32% in the same period of 2023.
Insights
As a financial analyst, I find this earnings report for John Marshall Bancorp to be generally positive, though with some mixed signals. Here are the key takeaways:
- Net income of
$3.9 million ($0.27 per diluted share) for Q2 2024 represents a13.3% decrease from$4.5 million in Q2 2023. While a decline, the bank remains solidly profitable. - Net interest margin expanded 9 basis points quarter-over-quarter to
2.19% , showing improved profitability on lending activities. This is a positive sign in the current rate environment. - Strong core deposit growth, with non-interest bearing demand deposits up
32.3% annualized. This helps reduce funding costs. - Pristine asset quality continues, with no non-performing loans or past due loans for 19 consecutive quarters. This is exceptional in the banking industry.
- The loan pipeline remains robust at
$88.4 million in new commitments, indicating continued growth potential. - Capital ratios remain well above regulatory requirements, providing a strong buffer against potential losses.
Overall, while profitability has declined year-over-year, the bank shows resilience in a challenging rate environment. The strong deposit growth, expanding margins and clean credit quality are particularly encouraging signs for future performance.
As a banking industry expert, I see several noteworthy aspects in John Marshall Bancorp's Q2 2024 results:
- The bank's ability to expand its net interest margin in this environment is commendable. Many banks are struggling with margin compression, so this
9 basis point expansion quarter-over-quarter is a significant positive. - The growth in non-interest bearing deposits is particularly impressive. Increasing these deposits by
32.3% annualized helps reduce funding costs and improve profitability. This suggests strong customer relationships and effective deposit gathering strategies. - The bank's credit quality remains exceptionally strong. Having no non-performing assets or past due loans for 19 consecutive quarters is rare in the industry and speaks to conservative underwriting practices.
- The loan-to-value ratios in the commercial real estate portfolio (both owner-occupied and non-owner occupied) are conservative, with most below
60% . This provides a significant cushion against potential property value declines. - The efficiency ratio of
62.6% is reasonable but has room for improvement. Many well-run community banks operate with efficiency ratios below60% .
While the year-over-year profit decline is a concern, the bank appears well-positioned to navigate the current environment and potentially outperform peers if interest rates stabilize or decline. The strong deposit growth and expanding margins are particularly encouraging signs for future performance.
Selected Highlights
- Margin Expansion – The Company improved its earning asset yield and funding composition. For the three months ended June 30, 2024, the Company reported a nine basis point increase in net interest margin when compared to the three months ended March 31, 2024.
-
Net Interest Income Growth – Annualized net interest income grew
11.5% during the three months ended June 30, 2024 when compared to the same period ended March 31, 2024. The three months ended June 30, 2024 represented the highest quarter of net interest income since the first quarter of 2023. -
Core Deposit Growth – The Company grew non-interest bearing demand deposits
or$32.5 million 32.3% annualized from March 31, 2024 and reduced wholesale deposits approximately or$13.4 million 17.3% annualized from March 31, 2024. Certificates of deposit as a percentage of total deposits decreased2.3% from March 31, 2024 to June 30, 2024. Non-interest bearing deposits to total deposits was22.8% as of June 30, 2024 versus21.3% as of March 31, 2024. -
Loan Pipeline Growth – The Company’s loan pipeline remained strong with
in new commitments recorded during the three months ended June 30, 2024. New commitments represent loans closed, but not necessarily fully funded as of June 30, 2024.$88.4 million - Pristine Asset Quality – For the nineteenth consecutive quarter, the Company had no non-performing loans, no other real estate owned and no loans 30 days or more past due. As of June 30, 2024, there were no loans greater than 10 days past due. There were no charge-offs during the quarter. The Company continues to adhere to strict underwriting standards and proactively manages the portfolio. As of June 30, 2024, there were no credits classified as substandard, doubtful or loss.
-
Loan Portfolio Strength – The Company believes its loan portfolio remains of exceptionally high quality. As of June 30, 2024, the Company’s office related commercial real estate (“CRE”) non-owner occupied and owner-occupied portfolios had a weighted average loan-to-values of
49.0% and58.6% , respectively, and weighted average debt service coverage ratios of 1.9x and 3.7x, respectively. The overwhelming majority of the Company’s office CRE portfolio is located outside of theWashington, D.C. central business district. -
Rigorous Expense Management – The Company remains focused on managing costs while investing for future growth and continues to revisit contracts for further savings opportunities. Non-interest expense for the three months ended June 30, 2024 was
compared to$7.9 million for the three months ended March 31, 2024 and$7.9 million for the three months ended June 30, 2023.$7.8 million
Chris Bergstrom, President and Chief Executive Officer, commented, “The second quarter of 2024 reflects improvements in margin and net interest income as a result of purposeful actions we have taken in combating an unprecedented rate environment. Our non-interest income initiatives are growing and contributing an increasing percentage of revenue. I remain optimistic about our growth for the remainder of the year given the strong loan pipeline and opportunities we are seeing in the market. The strength of our balance sheet, the growing loan pipeline and the continued improvement in our funding keep us well-positioned for the future.”
Balance Sheet, Liquidity and Credit Quality
Total assets were
Total loans, net of unearned income, increased
Total loans, net of unearned income, increased
The carrying value of the Company’s fixed income securities portfolio was
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
Total deposits were
The Company refinanced its
Shareholders’ equity increased
The Bank’s capital ratios at June 30, 2024 remained well above regulatory thresholds for well-capitalized banks. As of June 30, 2024, the Bank’s total risk-based capital ratio was
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Bank Regulatory Capital Ratios (As Reported) |
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Well-Capitalized Threshold |
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June 30, 2024 |
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December 31, 2023 |
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June 30, 2023 |
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Total risk-based capital ratio |
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10.0 |
% |
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16.4 |
% |
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15.7 |
% |
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16.1 |
% |
Tier 1 risk-based capital ratio |
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8.0 |
% |
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15.4 |
% |
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14.7 |
% |
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15.0 |
% |
Common equity tier 1 ratio |
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6.5 |
% |
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15.4 |
% |
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14.7 |
% |
|
15.0 |
% |
Leverage ratio |
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5.0 |
% |
|
12.2 |
% |
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11.6 |
% |
|
11.6 |
% |
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Adjusted Bank Regulatory Capital Ratios (Hypothetical Scenario of Selling All Bonds at Fair Market Value - Non-GAAP) |
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Well-Capitalized Threshold |
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June 30, 2024 |
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December 31, 2023 |
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June 30, 2023 |
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Adjusted total risk-based capital ratio |
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10.0 |
% |
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15.3 |
% |
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14.7 |
% |
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14.3 |
% |
Adjusted tier 1 risk-based capital ratio |
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8.0 |
% |
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14.3 |
% |
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13.5 |
% |
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13.0 |
% |
Adjusted common equity tier 1 ratio |
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6.5 |
% |
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14.3 |
% |
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13.5 |
% |
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13.0 |
% |
Adjusted leverage ratio |
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5.0 |
% |
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11.2 |
% |
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10.6 |
% |
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9.9 |
% |
The Company recorded no charge-offs during the six months ended June 30, 2024. As of June 30, 2024, the Company had no loans greater than 10 days past due, no non-accrual loans, and no other real estate owned assets.
At June 30, 2024, the allowance for loan credit losses was
At June 30, 2024, the allowance for credit losses on unfunded loan commitments was
The Company did not have an allowance for credit losses on held-to-maturity securities as of June 30, 2024 or March 31, 2024. As of June 30, 2024,
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 June 30, 2024, demonstrating their strong debt-service-coverage and loan-to-value ratios.
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Commercial Real Estate |
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Owner Occupied |
Non-owner Occupied |
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Asset Class |
Weighted Average Loan-to-Value(1) |
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Weighted Average Debt Service Coverage Ratio(2) |
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Number of Total Loans |
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Principal Balance(3)
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Weighted Average Loan-to-Value(1) |
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Weighted Average Debt Service Coverage Ratio(2) |
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Number of Total Loans |
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Principal Balance(3)
|
Warehouse & Industrial |
56.5 |
% |
2.8 |
x |
54 |
$ |
81,825 |
49.6 |
% |
2.9 |
x |
43 |
$ |
106,162 |
Office |
58.6 |
% |
3.7 |
x |
130 |
|
80,744 |
49.0 |
% |
1.9 |
x |
59 |
|
115,830 |
Retail |
61.0 |
% |
3.3 |
x |
40 |
|
68,794 |
50.4 |
% |
1.9 |
x |
141 |
|
416,811 |
Church |
29.4 |
% |
2.6 |
x |
19 |
|
33,635 |
- - |
|
- - |
|
- - |
|
- - |
Hotel/Motel |
- - |
|
- - |
|
- - |
|
- - |
59.2 |
% |
2.6 |
x |
9 |
|
51,339 |
Other(4) |
48.3 |
% |
4.0 |
x |
43 |
|
84,646 |
42.4 |
% |
3.0 |
x |
10 |
|
32,277 |
Total |
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|
|
286 |
$ |
349,644 |
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|
262 |
$ |
722,419 |
___________________________ | |
(1) |
Loan-to-value is determined at origination date and is divided by principal balance as of June 30, 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
Net interest income for the second quarter of 2024 increased
The yield on interest earning assets was
The Company recorded a
Non-interest income decreased
Non-interest expense increased
For the three months ended June 30, 2024, annualized non-interest expense to average assets was
For the three months ended June 30, 2024, the annualized efficiency ratio was
Year-to-Date Results
The Company reported net income of
Net interest income for the six months ended June 30, 2024 decreased
The Company recorded a
Non-interest income increased
Non-interest expense increased
For the six months ended June 30, 2024, annualized non-interest expense to average assets was
For the six months ended June 30, 2024, the annualized efficiency ratio was
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 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;
- The 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 reflect non-interest income exclusive of BOLI income, mark-to-market adjustments on the Company’s NQDC and losses recognized on the sale of certain investment securities during the respective periods.
These disclosures should not be viewed as a substitute for 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
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
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John Marshall Bancorp, Inc. |
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Financial Highlights (Unaudited) |
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(Dollar amounts in thousands, except per share data) |
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At or For the Three Months Ended |
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At or For the Six Months Ended |
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June 30, |
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June 30, |
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2024 |
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2023 |
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2024 |
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2023 |
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Selected Balance Sheet Data |
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Cash and cash equivalents |
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$ |
182,605 |
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$ |
129,551 |
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$ |
182,605 |
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$ |
129,551 |
|
Total investment securities |
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249,582 |
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429,954 |
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249,582 |
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429,954 |
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Loans, net of unearned income |
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1,827,187 |
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1,769,801 |
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1,827,187 |
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1,769,801 |
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Allowance for loan credit losses |
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18,433 |
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20,629 |
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18,433 |
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20,629 |
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Total assets |
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2,269,757 |
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2,364,250 |
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2,269,757 |
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2,364,250 |
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Non-interest bearing demand deposits |
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437,169 |
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433,931 |
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437,169 |
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433,931 |
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Interest bearing deposits |
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1,475,671 |
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1,612,378 |
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1,475,671 |
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1,612,378 |
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Total deposits |
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1,912,840 |
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|
2,046,309 |
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|
1,912,840 |
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2,046,309 |
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Federal Reserve Bank borrowings |
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77,000 |
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54,000 |
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77,000 |
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54,000 |
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Shareholders' equity |
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235,346 |
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|
218,970 |
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235,346 |
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218,970 |
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Summary Results of Operations |
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Interest income |
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$ |
26,791 |
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$ |
24,455 |
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$ |
53,710 |
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$ |
47,908 |
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Interest expense |
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14,710 |
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|
12,446 |
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29,885 |
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|
21,430 |
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Net interest income |
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12,081 |
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12,009 |
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23,825 |
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26,478 |
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Provision for (recovery of) credit losses |
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(292) |
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(868) |
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(1,068) |
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(1,642) |
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Net interest income after provision for (recovery of) credit losses |
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12,373 |
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12,877 |
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24,893 |
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28,120 |
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Non-interest income |
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555 |
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685 |
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1,373 |
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1,251 |
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Non-interest expense |
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7,909 |
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7,831 |
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15,833 |
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15,601 |
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Income before income taxes |
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5,019 |
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5,731 |
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10,433 |
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13,770 |
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Net income |
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3,905 |
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4,490 |
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8,109 |
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10,794 |
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Per Share Data and Shares Outstanding |
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Earnings per share - basic |
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$ |
0.27 |
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$ |
0.32 |
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$ |
0.57 |
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$ |
0.76 |
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Earnings per share - diluted |
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$ |
0.27 |
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$ |
0.32 |
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$ |
0.57 |
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$ |
0.76 |
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Book value per share |
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$ |
16.54 |
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$ |
15.50 |
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$ |
16.54 |
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$ |
15.50 |
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Weighted average common shares (basic) |
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14,173,245 |
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14,077,658 |
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14,152,115 |
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14,150,155 |
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Weighted average common shares (diluted) |
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14,200,171 |
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14,143,253 |
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14,189,517 |
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14,228,155 |
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Common shares outstanding at end of period |
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14,229,853 |
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14,126,138 |
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14,229,853 |
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14,126,138 |
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Performance Ratios |
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Return on average assets (annualized) |
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0.70 |
% |
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0.77 |
% |
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0.72 |
% |
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0.93 |
% |
Return on average equity (annualized) |
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6.68 |
% |
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8.13 |
% |
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6.95 |
% |
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9.85 |
% |
Net interest margin |
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2.19 |
% |
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2.10 |
% |
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2.15 |
% |
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2.33 |
% |
Tax-equivalent net interest margin (Non-GAAP) |
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2.19 |
% |
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2.09 |
% |
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2.14 |
% |
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2.32 |
% |
Non-interest income as a percentage of average assets (annualized) |
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0.10 |
% |
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0.12 |
% |
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0.12 |
% |
|
0.11 |
% |
Non-interest expense to average assets (annualized) |
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1.42 |
% |
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1.34 |
% |
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1.41 |
% |
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1.34 |
% |
Efficiency ratio |
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62.6 |
% |
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61.7 |
% |
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62.8 |
% |
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56.3 |
% |
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Asset Quality |
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Non-performing assets to total assets |
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- - |
% |
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- - |
% |
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- - |
% |
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- - |
% |
Non-performing loans to total loans |
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- - |
% |
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- - |
% |
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- - |
% |
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- - |
% |
Allowance for loan credit losses to non-performing loans |
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N/M |
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N/M |
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N/M |
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N/M |
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Allowance for loan credit losses to total loans |
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1.01 |
% |
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1.17 |
% |
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1.01 |
% |
|
1.17 |
% |
Net charge-offs (recoveries) to average loans (annualized) |
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0.00 |
% |
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0.00 |
% |
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0.00 |
% |
|
0.00 |
% |
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Loans 30-89 days past due and accruing interest |
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$ |
- - |
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$ |
- - |
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$ |
- - |
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$ |
- - |
|
Non-accrual loans |
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- - |
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- - |
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- - |
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- - |
|
Other real estate owned |
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- - |
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- - |
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- - |
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- - |
|
Non-performing assets (1) |
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- - |
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- - |
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- - |
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- - |
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Capital Ratios (Bank Level) |
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Equity / assets |
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11.4 |
% |
|
10.2 |
% |
|
11.4 |
% |
|
10.2 |
% |
Total risk-based capital ratio |
|
|
16.4 |
% |
|
16.1 |
% |
|
16.4 |
% |
|
16.1 |
% |
Tier 1 risk-based capital ratio |
|
|
15.4 |
% |
|
15.0 |
% |
|
15.4 |
% |
|
15.0 |
% |
Common equity tier 1 ratio |
|
|
15.4 |
% |
|
15.0 |
% |
|
15.4 |
% |
|
15.0 |
% |
Leverage ratio |
|
|
12.2 |
% |
|
11.6 |
% |
|
12.2 |
% |
|
11.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Information |
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of full time equivalent employees |
|
|
140 |
|
|
144 |
|
|
140 |
|
|
144 |
|
# Full service branch offices |
|
|
8 |
|
|
8 |
|
|
8 |
|
|
8 |
|
__________________________ | |
(1) |
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 |
|||||||
|
|
June 30, |
|
December 31, |
|
June 30, |
|
Last Six |
|
Year Over |
||||||||
|
|
2024 |
|
|
2023 |
|
2023 |
|
|
Months |
|
Year |
||||||
Assets |
|
(Unaudited) |
|
* |
|
(Unaudited) |
|
|
|
|
||||||||
Cash and due from banks |
|
$ |
10,024 |
|
|
$ |
7,424 |
|
|
$ |
13,938 |
|
|
35.0 |
% |
|
(28.1 |
)% |
Interest-bearing deposits in banks |
|
|
172,581 |
|
|
|
91,581 |
|
|
|
115,613 |
|
|
88.4 |
% |
|
49.3 |
% |
Securities available-for-sale, at fair value |
|
|
147,753 |
|
|
|
169,993 |
|
|
|
325,271 |
|
|
(13.1 |
)% |
|
(54.6 |
)% |
Securities held-to-maturity at amortized cost, fair value of |
|
|
93,830 |
|
|
|
95,505 |
|
|
|
97,453 |
|
|
(1.8 |
)% |
|
(3.7 |
)% |
Restricted securities, at cost |
|
|
4,966 |
|
|
|
5,012 |
|
|
|
4,535 |
|
|
(0.9 |
)% |
|
9.5 |
% |
Equity securities, at fair value |
|
|
3,033 |
|
|
|
2,792 |
|
|
|
2,695 |
|
|
8.6 |
% |
|
12.5 |
% |
Loans, net of unearned income |
|
|
1,827,187 |
|
|
|
1,859,967 |
|
|
|
1,769,801 |
|
|
(1.8 |
)% |
|
3.2 |
% |
Allowance for credit losses |
|
|
(18,433 |
) |
|
|
(19,543 |
) |
|
|
(20,629 |
) |
|
(5.7 |
)% |
|
(10.6 |
)% |
Net loans |
|
|
1,808,754 |
|
|
|
1,840,424 |
|
|
|
1,749,172 |
|
|
(1.7 |
)% |
|
3.4 |
% |
Bank premises and equipment, net |
|
|
1,184 |
|
|
|
1,281 |
|
|
|
1,370 |
|
|
(7.6 |
)% |
|
(13.6 |
)% |
Accrued interest receivable |
|
|
6,196 |
|
|
|
6,110 |
|
|
|
5,178 |
|
|
1.4 |
% |
|
19.7 |
% |
Bank owned life insurance |
|
|
- - |
|
|
|
- - |
|
|
|
21,371 |
|
|
N/M |
|
|
N/M |
|
Right of use assets |
|
|
4,105 |
|
|
|
4,176 |
|
|
|
4,443 |
|
|
(1.7 |
)% |
|
(7.6 |
)% |
Other assets |
|
|
17,331 |
|
|
|
18,251 |
|
|
|
23,211 |
|
|
(5.0 |
)% |
|
(25.3 |
)% |
Total assets |
|
$ |
2,269,757 |
|
|
$ |
2,242,549 |
|
|
$ |
2,364,250 |
|
|
1.2 |
% |
|
(4.0 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Liabilities and Shareholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Non-interest bearing demand deposits |
|
$ |
437,169 |
|
|
$ |
411,374 |
|
|
$ |
433,931 |
|
|
6.3 |
% |
|
0.7 |
% |
Interest-bearing demand deposits |
|
|
667,951 |
|
|
|
607,971 |
|
|
|
652,638 |
|
|
9.9 |
% |
|
2.3 |
% |
Savings deposits |
|
|
45,884 |
|
|
|
52,061 |
|
|
|
68,013 |
|
|
(11.9 |
)% |
|
(32.5 |
)% |
Time deposits |
|
|
761,836 |
|
|
|
835,194 |
|
|
|
891,727 |
|
|
(8.8 |
)% |
|
(14.6 |
)% |
Total deposits |
|
|
1,912,840 |
|
|
|
1,906,600 |
|
|
|
2,046,309 |
|
|
0.3 |
% |
|
(6.5 |
)% |
Federal funds purchased |
|
|
- - |
|
|
|
10,000 |
|
|
|
- - |
|
|
N/M |
|
|
N/M |
|
Federal Reserve Bank borrowings |
|
|
77,000 |
|
|
|
54,000 |
|
|
|
54,000 |
|
|
42.6 |
% |
|
42.6 |
% |
Subordinated debt, net |
|
|
24,749 |
|
|
|
24,708 |
|
|
|
24,666 |
|
|
0.2 |
% |
|
0.3 |
% |
Accrued interest payable |
|
|
4,029 |
|
|
|
4,559 |
|
|
|
2,336 |
|
|
(11.6 |
)% |
|
72.5 |
% |
Lease liabilities |
|
|
4,366 |
|
|
|
4,446 |
|
|
|
4,733 |
|
|
(1.8 |
)% |
|
(7.8 |
)% |
Other liabilities |
|
|
11,427 |
|
|
|
8,322 |
|
|
|
13,236 |
|
|
37.3 |
% |
|
(13.7 |
)% |
Total liabilities |
|
|
2,034,411 |
|
|
|
2,012,635 |
|
|
|
2,145,280 |
|
|
1.1 |
% |
|
(5.2 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Preferred stock, par value |
|
|
- - |
|
|
|
- - |
|
|
|
- - |
|
|
N/M |
|
|
N/M |
|
Common stock, nonvoting, par value |
|
|
- - |
|
|
|
- - |
|
|
|
- - |
|
|
N/M |
|
|
N/M |
|
Common stock, voting, par value |
|
|
142 |
|
|
|
141 |
|
|
|
141 |
|
|
0.7 |
% |
|
0.7 |
% |
Additional paid-in capital |
|
|
96,817 |
|
|
|
95,636 |
|
|
|
95,380 |
|
|
1.2 |
% |
|
1.5 |
% |
Retained earnings |
|
|
150,942 |
|
|
|
146,388 |
|
|
|
152,024 |
|
|
3.1 |
% |
|
(0.7 |
)% |
Accumulated other comprehensive loss |
|
|
(12,555 |
) |
|
|
(12,251 |
) |
|
|
(28,575 |
) |
|
2.5 |
% |
|
(56.1 |
)% |
Total shareholders' equity |
|
|
235,346 |
|
|
|
229,914 |
|
|
|
218,970 |
|
|
2.4 |
% |
|
7.5 |
% |
Total liabilities and shareholders' equity |
|
$ |
2,269,757 |
|
|
$ |
2,242,549 |
|
|
$ |
2,364,250 |
|
|
1.2 |
% |
|
(4.0 |
)% |
* 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 |
|
|
|
Six Months Ended |
|
|
||||||||||||||
|
|
June 30 |
|
|
|
June 30 |
|
|
||||||||||||||
|
|
2024 |
|
|
2023 |
|
|
% Change |
|
2024 |
|
|
2023 |
|
|
% Change |
||||||
|
|
(Unaudited) |
|
(Unaudited) |
|
|
|
(Unaudited) |
|
(Unaudited) |
|
|
||||||||||
Interest and Dividend Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest and fees on loans |
|
$ |
23,360 |
|
|
$ |
21,005 |
|
|
11.2 |
% |
|
$ |
46,983 |
|
|
$ |
41,430 |
|
|
13.4 |
% |
Interest on investment securities, taxable |
|
|
1,194 |
|
|
|
2,140 |
|
|
(44.2 |
)% |
|
|
2,463 |
|
|
|
4,391 |
|
|
(43.9 |
)% |
Interest on investment securities, tax-exempt |
|
|
9 |
|
|
|
15 |
|
|
(40.0 |
)% |
|
|
18 |
|
|
|
34 |
|
|
(47.1 |
)% |
Dividends |
|
|
84 |
|
|
|
70 |
|
|
20.0 |
% |
|
|
166 |
|
|
|
145 |
|
|
14.5 |
% |
Interest on deposits in other banks |
|
|
2,144 |
|
|
|
1,225 |
|
|
75.0 |
% |
|
|
4,080 |
|
|
|
1,908 |
|
|
N/M |
|
Total interest and dividend income |
|
|
26,791 |
|
|
|
24,455 |
|
|
9.6 |
% |
|
|
53,710 |
|
|
|
47,908 |
|
|
12.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest Expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Deposits |
|
|
13,450 |
|
|
|
11,759 |
|
|
14.4 |
% |
|
|
27,381 |
|
|
|
20,318 |
|
|
34.8 |
% |
Federal funds purchased |
|
|
- - |
|
|
|
- - |
|
|
N/M |
|
|
|
2 |
|
|
|
9 |
|
|
N/M |
|
Federal Home Loan Bank advances |
|
|
- - |
|
|
|
- - |
|
|
N/M |
|
|
|
- - |
|
|
|
67 |
|
|
N/M |
|
Federal Reserve Bank borrowings |
|
|
911 |
|
|
|
338 |
|
|
N/M |
|
|
|
1,804 |
|
|
|
338 |
|
|
N/M |
|
Subordinated debt |
|
|
349 |
|
|
|
349 |
|
|
-- |
% |
|
|
698 |
|
|
|
698 |
|
|
-- |
% |
Total interest expense |
|
|
14,710 |
|
|
|
12,446 |
|
|
18.2 |
% |
|
|
29,885 |
|
|
|
21,430 |
|
|
39.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net interest income |
|
|
12,081 |
|
|
|
12,009 |
|
|
0.6 |
% |
|
|
23,825 |
|
|
|
26,478 |
|
|
(10.0 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Provision for (recovery of) Credit Losses |
|
|
(292 |
) |
|
|
(868 |
) |
|
(66.4 |
)% |
|
|
(1,068 |
) |
|
|
(1,642 |
) |
|
(35.0 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net interest income after provision for (recovery of) credit losses |
|
|
12,373 |
|
|
|
12,877 |
|
|
(3.9 |
)% |
|
|
24,893 |
|
|
|
28,120 |
|
|
(11.5 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Non-interest Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Service charges on deposit accounts |
|
|
88 |
|
|
|
82 |
|
|
7.3 |
% |
|
|
176 |
|
|
|
154 |
|
|
14.3 |
% |
Bank owned life insurance |
|
|
- - |
|
|
|
101 |
|
|
N/M |
|
|
|
- - |
|
|
|
201 |
|
|
N/M |
|
Other service charges and fees |
|
|
165 |
|
|
|
314 |
|
|
(47.5 |
)% |
|
|
314 |
|
|
|
517 |
|
|
(39.3 |
)% |
Losses on sale of available-for-sale securities |
|
|
- - |
|
|
|
- - |
|
|
N/M |
|
|
|
- - |
|
|
|
(202 |
) |
|
N/M |
|
Insurance commissions |
|
|
40 |
|
|
|
50 |
|
|
(20.0 |
)% |
|
|
292 |
|
|
|
256 |
|
|
14.1 |
% |
Gain on sale of government guaranteed loans |
|
|
216 |
|
|
|
23 |
|
|
N/M |
|
|
|
349 |
|
|
|
23 |
|
|
N/M |
|
Non-qualified deferred compensation plan asset gains, net |
|
|
35 |
|
|
|
83 |
|
|
(57.8 |
)% |
|
|
159 |
|
|
|
172 |
|
|
(7.6 |
)% |
Other income |
|
|
11 |
|
|
|
32 |
|
|
(65.6 |
)% |
|
|
83 |
|
|
|
130 |
|
|
(36.2 |
)% |
Total non-interest income |
|
|
555 |
|
|
|
685 |
|
|
(19.0 |
)% |
|
|
1,373 |
|
|
|
1,251 |
|
|
9.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Non-interest Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Salaries and employee benefits |
|
|
4,875 |
|
|
|
4,965 |
|
|
(1.8 |
)% |
|
|
9,685 |
|
|
|
9,877 |
|
|
(1.9 |
)% |
Occupancy expense of premises |
|
|
448 |
|
|
|
448 |
|
|
-- |
% |
|
|
899 |
|
|
|
918 |
|
|
(2.1 |
)% |
Furniture and equipment expenses |
|
|
301 |
|
|
|
304 |
|
|
(1.0 |
)% |
|
|
598 |
|
|
|
600 |
|
|
(0.3 |
)% |
Other expenses |
|
|
2,285 |
|
|
|
2,114 |
|
|
8.1 |
% |
|
|
4,651 |
|
|
|
4,206 |
|
|
10.6 |
% |
Total non-interest expenses |
|
|
7,909 |
|
|
|
7,831 |
|
|
1.0 |
% |
|
|
15,833 |
|
|
|
15,601 |
|
|
1.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Income before income taxes |
|
|
5,019 |
|
|
|
5,731 |
|
|
(12.4 |
)% |
|
|
10,433 |
|
|
|
13,770 |
|
|
(24.2 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Income Tax Expense |
|
|
1,114 |
|
|
|
1,241 |
|
|
(10.2 |
)% |
|
|
2,324 |
|
|
|
2,976 |
|
|
(21.9 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net income |
|
$ |
3,905 |
|
|
$ |
4,490 |
|
|
(13.0 |
)% |
|
$ |
8,109 |
|
|
$ |
10,794 |
|
|
(24.9 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Earnings Per Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Basic |
|
$ |
0.27 |
|
|
$ |
0.32 |
|
|
(15.6 |
)% |
|
$ |
0.57 |
|
|
$ |
0.76 |
|
|
(25.0 |
)% |
Diluted |
|
$ |
0.27 |
|
|
$ |
0.32 |
|
|
(15.6 |
)% |
|
$ |
0.57 |
|
|
$ |
0.76 |
|
|
(25.0 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
John Marshall Bancorp, Inc. |
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Historical Trends - Quarterly Financial Data (Unaudited) |
|||||||||||||||||||
(Dollar amounts in thousands, except per share data) |
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
2024 |
2023 |
||||||||||||||||
|
|
June 30 |
|
March 31 |
December 31 |
September 30 |
June 30 |
March 31 |
|||||||||||
Profitability for the Quarter: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest income |
|
$ |
26,791 |
|
$ |
26,919 |
|
$ |
26,598 |
|
$ |
26,263 |
|
$ |
24,455 |
|
$ |
23,453 |
|
Interest expense |
|
|
14,710 |
|
|
15,175 |
|
|
14,571 |
|
|
14,284 |
|
|
12,446 |
|
|
8,984 |
|
Net interest income |
|
|
12,081 |
|
|
11,744 |
|
|
12,027 |
|
|
11,979 |
|
|
12,009 |
|
|
14,469 |
|
Provision for (recovery of) credit losses |
|
|
(292 |
) |
|
(776 |
) |
|
(781 |
) |
|
(829 |
) |
|
(868 |
) |
|
(774 |
) |
Non-interest income (loss) |
|
|
555 |
|
|
818 |
|
|
624 |
|
|
(16,815 |
) |
|
685 |
|
|
566 |
|
Non-interest expenses |
|
|
7,909 |
|
|
7,924 |
|
|
7,554 |
|
|
7,660 |
|
|
7,831 |
|
|
7,770 |
|
Income (loss) before income taxes |
|
|
5,019 |
|
|
5,414 |
|
|
5,878 |
|
|
(11,667 |
) |
|
5,731 |
|
|
8,039 |
|
Income tax expense (benefit) |
|
|
1,114 |
|
|
1,210 |
|
|
1,376 |
|
|
(1,530 |
) |
|
1,241 |
|
|
1,735 |
|
Net income (loss) |
|
$ |
3,905 |
|
$ |
4,204 |
|
$ |
4,502 |
|
$ |
(10,137 |
) |
$ |
4,490 |
|
$ |
6,304 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Financial Performance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Return on average assets (annualized) |
|
|
0.70 |
% |
|
0.75 |
% |
|
0.78 |
% |
|
(1.73 |
)% |
|
0.77 |
% |
|
1.10 |
% |
Return on average equity (annualized) |
|
|
6.68 |
% |
|
7.23 |
% |
|
7.91 |
% |
|
(18.24 |
)% |
|
8.13 |
% |
|
11.83 |
% |
Net interest margin |
|
|
2.19 |
% |
|
2.10 |
% |
|
2.11 |
% |
|
2.07 |
% |
|
2.09 |
% |
|
2.56 |
% |
Tax-equivalent net interest margin (Non-GAAP) |
|
|
2.19 |
% |
|
2.11 |
% |
|
2.12 |
% |
|
2.08 |
% |
|
2.10 |
% |
|
2.57 |
% |
Non-interest income (loss) as a percentage of average assets (annualized) |
|
|
0.10 |
% |
|
0.15 |
% |
|
0.11 |
% |
|
(2.86 |
)% |
|
0.12 |
% |
|
0.10 |
% |
Non-interest expense to average assets (annualized) |
|
|
1.42 |
% |
|
1.41 |
% |
|
1.31 |
% |
|
1.30 |
% |
|
1.34 |
% |
|
1.35 |
% |
Efficiency ratio |
|
|
62.6 |
% |
|
63.1 |
% |
|
59.7 |
% |
|
(158.4 |
)% |
|
61.7 |
% |
|
51.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Per Share Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Earnings (loss) per share - basic |
|
$ |
0.27 |
|
$ |
0.30 |
|
$ |
0.32 |
|
$ |
(0.72 |
) |
$ |
0.32 |
|
$ |
0.45 |
|
Earnings (loss) per share - diluted |
|
$ |
0.27 |
|
$ |
0.30 |
|
$ |
0.32 |
|
$ |
(0.72 |
) |
$ |
0.32 |
|
$ |
0.44 |
|
Book value per share |
|
$ |
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) |
|
|
14,173,245 |
|
|
14,130,986 |
|
|
14,082,762 |
|
|
14,080,026 |
|
|
14,077,658 |
|
|
14,067,047 |
|
Weighted average common shares (diluted) |
|
|
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 |
|
|
14,229,853 |
|
|
14,209,606 |
|
|
14,148,533 |
|
|
14,126,084 |
|
|
14,126,138 |
|
|
14,125,208 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Non-interest Income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Service charges on deposit accounts |
|
$ |
88 |
|
$ |
88 |
|
$ |
91 |
|
$ |
85 |
|
$ |
82 |
|
$ |
72 |
|
Bank owned life insurance |
|
|
- - |
|
|
- - |
|
|
- - |
|
|
23 |
|
|
101 |
|
|
100 |
|
Other service charges and fees |
|
|
165 |
|
|
149 |
|
|
161 |
|
|
160 |
|
|
314 |
|
|
203 |
|
Losses on sale of available-for-sale securities |
|
|
- - |
|
|
- - |
|
|
- - |
|
|
(17,114 |
) |
|
- - |
|
|
(202 |
) |
Insurance commissions |
|
|
40 |
|
|
252 |
|
|
76 |
|
|
54 |
|
|
50 |
|
|
206 |
|
Gain on sale of government guaranteed loans |
|
|
216 |
|
|
133 |
|
|
81 |
|
|
27 |
|
|
23 |
|
|
- - |
|
Non-qualified deferred compensation plan asset gains (losses), net |
|
|
35 |
|
|
124 |
|
|
205 |
|
|
(60 |
) |
|
83 |
|
|
89 |
|
Other income |
|
|
11 |
|
|
72 |
|
|
10 |
|
|
10 |
|
|
32 |
|
|
98 |
|
Total non-interest income (loss) |
|
$ |
555 |
|
$ |
818 |
|
$ |
624 |
|
$ |
(16,815 |
) |
$ |
685 |
|
$ |
566 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Non-interest Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Salaries and employee benefits |
|
$ |
4,875 |
|
$ |
4,810 |
|
$ |
4,507 |
|
$ |
5,052 |
|
$ |
4,965 |
|
$ |
4,912 |
|
Occupancy expense of premises |
|
|
448 |
|
|
451 |
|
|
448 |
|
|
445 |
|
|
448 |
|
|
470 |
|
Furniture and equipment expenses |
|
|
301 |
|
|
297 |
|
|
296 |
|
|
282 |
|
|
304 |
|
|
296 |
|
Other expenses |
|
|
2,285 |
|
|
2,366 |
|
|
2,303 |
|
|
1,881 |
|
|
2,114 |
|
|
2,092 |
|
Total non-interest expenses |
|
$ |
7,909 |
|
$ |
7,924 |
|
$ |
7,554 |
|
$ |
7,660 |
|
$ |
7,831 |
|
$ |
7,770 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Balance Sheets at Quarter End: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total loans, net of unearned income |
|
$ |
1,827,187 |
|
$ |
1,825,931 |
|
$ |
1,859,967 |
|
$ |
1,820,132 |
|
$ |
1,769,801 |
|
$ |
1,771,272 |
|
Allowance for loan credit losses |
|
|
(18,433 |
) |
|
(18,671 |
) |
|
(19,543 |
) |
|
(20,036 |
) |
|
(20,629 |
) |
|
(21,619 |
) |
Investment securities |
|
|
249,582 |
|
|
261,341 |
|
|
273,302 |
|
|
272,881 |
|
|
429,954 |
|
|
445,785 |
|
Interest-earning assets |
|
|
2,249,350 |
|
|
2,234,592 |
|
|
2,224,850 |
|
|
2,278,027 |
|
|
2,315,368 |
|
|
2,312,404 |
|
Total assets |
|
|
2,269,757 |
|
|
2,251,837 |
|
|
2,242,549 |
|
|
2,298,202 |
|
|
2,364,250 |
|
|
2,351,307 |
|
Total deposits |
|
|
1,912,840 |
|
|
1,900,990 |
|
|
1,906,600 |
|
|
1,981,623 |
|
|
2,046,309 |
|
|
2,088,642 |
|
Total interest-bearing liabilities |
|
|
1,577,420 |
|
|
1,598,050 |
|
|
1,583,934 |
|
|
1,622,430 |
|
|
1,691,044 |
|
|
1,665,837 |
|
Total shareholders' equity |
|
|
235,346 |
|
|
234,550 |
|
|
229,914 |
|
|
220,567 |
|
|
218,970 |
|
|
220,823 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Quarterly Average Balance Sheets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total loans, net of unearned income |
|
$ |
1,810,722 |
|
$ |
1,835,966 |
|
$ |
1,837,855 |
|
$ |
1,790,720 |
|
$ |
1,767,831 |
|
$ |
1,772,922 |
|
Investment securities |
|
|
255,940 |
|
|
270,760 |
|
|
273,264 |
|
|
310,407 |
|
|
441,778 |
|
|
463,254 |
|
Interest-earning assets |
|
|
2,222,658 |
|
|
2,247,620 |
|
|
2,260,356 |
|
|
2,301,642 |
|
|
2,305,050 |
|
|
2,295,677 |
|
Total assets |
|
|
2,239,261 |
|
|
2,264,544 |
|
|
2,280,060 |
|
|
2,331,403 |
|
|
2,344,712 |
|
|
2,334,695 |
|
Total deposits |
|
|
1,883,010 |
|
|
1,914,173 |
|
|
1,956,039 |
|
|
2,012,934 |
|
|
2,051,702 |
|
|
2,066,139 |
|
Total interest-bearing liabilities |
|
|
1,551,953 |
|
|
1,600,197 |
|
|
1,587,179 |
|
|
1,660,980 |
|
|
1,667,597 |
|
|
1,621,131 |
|
Total shareholders' equity |
|
|
235,136 |
|
|
233,952 |
|
|
225,718 |
|
|
220,473 |
|
|
221,608 |
|
|
220,282 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Financial Measures: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Average equity to average assets |
|
|
10.5 |
% |
|
10.3 |
% |
|
9.9 |
% |
|
9.5 |
% |
|
9.5 |
% |
|
9.4 |
% |
Investment securities to earning assets |
|
|
11.1 |
% |
|
11.7 |
% |
|
12.3 |
% |
|
12.0 |
% |
|
18.6 |
% |
|
19.3 |
% |
Loans to earning assets |
|
|
81.2 |
% |
|
81.7 |
% |
|
83.6 |
% |
|
79.9 |
% |
|
76.4 |
% |
|
76.6 |
% |
Loans to assets |
|
|
80.5 |
% |
|
81.1 |
% |
|
82.9 |
% |
|
79.2 |
% |
|
74.9 |
% |
|
75.3 |
% |
Loans to deposits |
|
|
95.5 |
% |
|
96.1 |
% |
|
97.6 |
% |
|
91.9 |
% |
|
86.5 |
% |
|
84.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Capital Ratios (Bank Level): |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Equity / assets |
|
|
11.4 |
% |
|
11.3 |
% |
|
11.1 |
% |
|
10.6 |
% |
|
10.2 |
% |
|
10.3 |
% |
Total risk-based capital ratio |
|
|
16.4 |
% |
|
16.1 |
% |
|
15.7 |
% |
|
15.7 |
% |
|
16.1 |
% |
|
16.1 |
% |
Tier 1 risk-based capital ratio |
|
|
15.4 |
% |
|
15.1 |
% |
|
14.7 |
% |
|
14.6 |
% |
|
15.0 |
% |
|
14.9 |
% |
Common equity tier 1 ratio |
|
|
15.4 |
% |
|
15.1 |
% |
|
14.7 |
% |
|
14.6 |
% |
|
15.0 |
% |
|
14.9 |
% |
Leverage ratio |
|
|
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 |
|
|
|
|
|||||||||||||||||||||
|
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 |
|
||||||||||
Commercial business loans |
$ |
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 |
|
127 |
|
0.0 |
% |
|
129 |
|
0.0 |
% |
|
131 |
|
0.0 |
% |
|
132 |
|
0.0 |
% |
|
133 |
|
0.0 |
% |
|
135 |
|
0.0 |
% |
Commercial owner-occupied real estate loans |
|
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 |
|
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 |
|
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 |
|
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 |
|
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 |
|
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 |
|
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 |
|
876 |
|
0.0 |
% |
|
772 |
|
0.0 |
% |
|
560 |
|
0.0 |
% |
|
467 |
|
0.0 |
% |
|
646 |
|
0.0 |
% |
|
324 |
|
0.0 |
% |
Total loans |
$ |
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 |
|
(18,433 |
) |
|
|
|
(18,671 |
) |
|
|
|
(19,543 |
) |
|
|
|
(20,036 |
) |
|
|
|
(20,629 |
) |
|
|
|
(21,619 |
) |
|
|
Net deferred loan costs (fees) |
|
4,882 |
|
|
|
|
5,049 |
|
|
|
|
4,983 |
|
|
|
|
4,592 |
|
|
|
|
4,362 |
|
|
|
|
4,022 |
|
|
|
Net loans |
$ |
1,808,754 |
|
|
|
$ |
1,807,260 |
|
|
|
$ |
1,840,424 |
|
|
|
$ |
1,800,096 |
|
|
|
$ |
1,749,172 |
|
|
|
$ |
1,749,653 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
2024 |
|
|
|
2023 |
|
|
|
|
|||||||||||||||||||||
|
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 |
|
||||||||||||
Non-interest bearing demand deposits |
$ |
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) |
|
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) |
|
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 |
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
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 |
|
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 |
|
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 |
|
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 |
|
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 |
$ |
1,912,840 |
|
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 |
% |
$ |
10,000 |
|
11.3 |
% |
$ |
- - |
|
0.0 |
% |
$ |
- - |
|
0.0 |
% |
$ |
- - |
|
0.0 |
% |
Federal Reserve Bank borrowings |
|
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 |
|
24,749 |
|
24.3 |
% |
|
24,729 |
|
24.3 |
% |
|
24,708 |
|
27.8 |
% |
|
24,687 |
|
31.4 |
% |
|
24,666 |
|
31.4 |
% |
|
24,645 |
|
100.0 |
% |
Total borrowings |
$ |
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 |
$ |
2,014,589 |
|
|
|
$ |
2,002,719 |
|
|
|
$ |
1,995,308 |
|
|
|
$ |
2,060,310 |
|
|
|
$ |
2,124,975 |
|
|
|
$ |
2,113,287 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Core customer funding sources (2) |
$ |
1,615,092 |
|
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) |
|
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 |
$ |
1,989,840 |
|
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) |
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2024 |
|
Six Months Ended June 30, 2023 |
|
||||||||||||
|
|
|
|
|
Interest Income / |
|
Average |
|
|
|
|
Interest Income / |
|
Average |
|
||
|
|
Average Balance |
|
Expense |
|
Rate |
|
Average Balance |
|
Expense |
|
Rate |
|
||||
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
$ |
261,970 |
|
$ |
2,629 |
|
2.02 |
% |
$ |
449,272 |
|
$ |
4,536 |
|
2.04 |
% |
Tax-exempt(1) |
|
|
1,380 |
|
|
22 |
|
3.21 |
% |
|
3,184 |
|
|
43 |
|
2.72 |
% |
Total securities |
|
$ |
263,350 |
|
$ |
2,651 |
|
2.02 |
% |
$ |
452,456 |
|
$ |
4,579 |
|
2.04 |
% |
Loans, net of unearned income(2): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
|
1,803,507 |
|
|
46,684 |
|
5.21 |
% |
|
1,741,915 |
|
|
40,969 |
|
4.74 |
% |
Tax-exempt(1) |
|
|
19,837 |
|
|
378 |
|
3.83 |
% |
|
28,447 |
|
|
584 |
|
4.14 |
% |
Total loans, net of unearned income |
|
$ |
1,823,344 |
|
$ |
47,062 |
|
5.19 |
% |
$ |
1,770,362 |
|
$ |
41,553 |
|
4.73 |
% |
Interest-bearing deposits in other banks |
|
$ |
148,445 |
|
$ |
4,080 |
|
5.53 |
% |
$ |
77,571 |
|
$ |
1,908 |
|
4.96 |
% |
Total interest-earning assets |
|
$ |
2,235,139 |
|
$ |
53,793 |
|
4.84 |
% |
$ |
2,300,389 |
|
$ |
48,040 |
|
4.21 |
% |
Total non-interest earning assets |
|
|
16,726 |
|
|
|
|
|
|
|
39,342 |
|
|
|
|
|
|
Total assets |
|
$ |
2,251,865 |
|
|
|
|
|
|
$ |
2,339,731 |
|
|
|
|
|
|
Liabilities & Shareholders’ Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW accounts |
|
$ |
308,612 |
|
$ |
4,211 |
|
2.74 |
% |
$ |
272,872 |
|
$ |
2,245 |
|
1.66 |
% |
Money market accounts |
|
|
323,287 |
|
|
5,122 |
|
3.19 |
% |
|
390,511 |
|
|
4,951 |
|
2.56 |
% |
Savings accounts |
|
|
52,122 |
|
|
361 |
|
1.39 |
% |
|
81,025 |
|
|
475 |
|
1.18 |
% |
Time deposits |
|
|
791,157 |
|
|
17,687 |
|
4.50 |
% |
|
858,027 |
|
|
12,647 |
|
2.97 |
% |
Total interest-bearing deposits |
|
$ |
1,475,178 |
|
$ |
27,381 |
|
3.73 |
% |
$ |
1,602,435 |
|
$ |
20,318 |
|
2.56 |
% |
Federal funds purchased |
|
|
55 |
|
|
2 |
|
7.31 |
% |
|
392 |
|
|
9 |
|
4.63 |
% |
Subordinated debt, net |
|
|
24,726 |
|
|
698 |
|
5.68 |
% |
|
24,643 |
|
|
698 |
|
5.71 |
% |
Federal Reserve Bank borrowings |
|
|
76,116 |
|
|
1,804 |
|
4.77 |
% |
|
14,022 |
|
|
338 |
|
4.86 |
% |
Other borrowed funds |
|
|
— |
|
|
— |
|
N/M |
% |
|
3,001 |
|
|
67 |
|
4.50 |
% |
Total interest-bearing liabilities |
|
$ |
1,576,075 |
|
$ |
29,885 |
|
3.81 |
% |
$ |
1,644,493 |
|
$ |
21,430 |
|
2.63 |
% |
Demand deposits |
|
|
423,414 |
|
|
|
|
|
|
|
456,445 |
|
|
|
|
|
|
Other liabilities |
|
|
17,832 |
|
|
|
|
|
|
|
17,845 |
|
|
|
|
|
|
Total liabilities |
|
$ |
2,017,321 |
|
|
|
|
|
|
$ |
2,118,783 |
|
|
|
|
|
|
Shareholders’ equity |
|
$ |
234,544 |
|
|
|
|
|
|
$ |
220,948 |
|
|
|
|
|
|
Total liabilities and shareholders’ equity |
|
$ |
2,251,865 |
|
|
|
|
|
|
$ |
2,339,731 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax-equivalent net interest income and spread (Non-GAAP)(1) |
|
|
|
|
$ |
23,908 |
|
1.03 |
% |
|
|
|
$ |
26,610 |
|
1.58 |
% |
Less: tax-equivalent adjustment |
|
|
|
|
|
83 |
|
|
|
|
|
|
|
132 |
|
|
|
Net interest income and spread (GAAP) |
|
|
|
|
$ |
23,825 |
|
1.02 |
% |
|
|
|
$ |
26,478 |
|
1.57 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income/earnings assets |
|
|
|
|
|
|
|
4.83 |
% |
|
|
|
|
|
|
4.20 |
% |
Interest expense/earning assets |
|
|
|
|
|
|
|
2.69 |
% |
|
|
|
|
|
|
1.88 |
% |
Net interest margin |
|
|
|
|
|
|
|
2.14 |
% |
|
|
|
|
|
|
2.32 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax-equivalent interest income/earnings assets (Non-GAAP)(1) |
|
|
|
|
|
|
|
4.84 |
% |
|
|
|
|
|
|
4.21 |
% |
Interest expense/earning assets |
|
|
|
|
|
|
|
2.69 |
% |
|
|
|
|
|
|
1.88 |
% |
Tax-equivalent net interest margin (Non-GAAP)(3) |
|
|
|
|
|
|
|
2.15 |
% |
|
|
|
|
|
|
2.33 |
% |
_______________________ | |
(1) |
Tax-equivalent income and related measures have been adjusted using the federal statutory tax rate of |
(2) |
The Company did not have any loans on non-accrual as of June 30, 2024 and June 30, 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 June 30, 2024 |
|
Three Months Ended June 30, 2023 |
|
||||||||||||
|
|
|
|
|
Interest Income / |
|
Average |
|
|
|
|
Interest Income / |
|
Average |
|
||
|
|
Average Balance |
|
Expense |
|
Rate |
|
Average Balance |
|
Expense |
|
Rate |
|
||||
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
$ |
254,561 |
|
$ |
1,278 |
|
2.02 |
% |
$ |
438,845 |
|
$ |
2,210 |
|
2.02 |
% |
Tax-exempt(1) |
|
|
1,379 |
|
|
11 |
|
3.21 |
% |
|
2,933 |
|
|
20 |
|
2.74 |
% |
Total securities |
|
$ |
255,940 |
|
$ |
1,289 |
|
2.03 |
% |
$ |
441,778 |
|
$ |
2,230 |
|
2.02 |
% |
Loans, net of unearned income(2): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
|
1,793,487 |
|
|
23,227 |
|
5.21 |
% |
|
1,739,511 |
|
|
20,775 |
|
4.79 |
% |
Tax-exempt(1) |
|
|
17,235 |
|
|
169 |
|
3.94 |
% |
|
28,320 |
|
|
292 |
|
4.14 |
% |
Total loans, net of unearned income |
|
$ |
1,810,722 |
|
$ |
23,396 |
|
5.20 |
% |
$ |
1,767,831 |
|
$ |
21,067 |
|
4.78 |
% |
Interest-bearing deposits in other banks |
|
$ |
155,996 |
|
$ |
2,144 |
|
5.53 |
% |
$ |
95,441 |
|
$ |
1,225 |
|
5.15 |
% |
Total interest-earning assets |
|
$ |
2,222,658 |
|
$ |
26,829 |
|
4.85 |
% |
$ |
2,305,050 |
|
$ |
24,522 |
|
4.27 |
% |
Total non-interest earning assets |
|
|
16,603 |
|
|
|
|
|
|
|
39,662 |
|
|
|
|
|
|
Total assets |
|
$ |
2,239,261 |
|
|
|
|
|
|
$ |
2,344,712 |
|
|
|
|
|
|
Liabilities & Shareholders’ Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOW accounts |
|
$ |
303,745 |
|
|
2,012 |
|
2.66 |
% |
$ |
287,094 |
|
$ |
1,483 |
|
2.07 |
% |
Money market accounts |
|
|
321,822 |
|
|
2,545 |
|
3.18 |
% |
|
352,373 |
|
|
2,476 |
|
2.82 |
% |
Savings accounts |
|
|
51,179 |
|
|
186 |
|
1.46 |
% |
|
74,483 |
|
|
231 |
|
1.24 |
% |
Time deposits |
|
|
773,470 |
|
|
8,707 |
|
4.53 |
% |
|
901,104 |
|
|
7,569 |
|
3.37 |
% |
Total interest-bearing deposits |
|
$ |
1,450,216 |
|
$ |
13,450 |
|
3.73 |
% |
$ |
1,615,054 |
|
$ |
11,759 |
|
2.92 |
% |
Subordinated debt, net |
|
|
24,737 |
|
|
349 |
|
5.67 |
% |
|
24,653 |
|
|
349 |
|
5.68 |
% |
Federal Reserve Bank borrowings |
|
|
77,000 |
|
|
911 |
|
4.76 |
% |
|
27,890 |
|
|
338 |
|
4.86 |
% |
Total interest-bearing liabilities |
|
$ |
1,551,953 |
|
$ |
14,710 |
|
3.81 |
% |
$ |
1,667,597 |
|
$ |
12,446 |
|
2.99 |
% |
Demand deposits |
|
|
432,794 |
|
|
|
|
|
|
|
436,648 |
|
|
|
|
|
|
Other liabilities |
|
|
19,378 |
|
|
|
|
|
|
|
18,859 |
|
|
|
|
|
|
Total liabilities |
|
$ |
2,004,125 |
|
|
|
|
|
|
$ |
2,123,104 |
|
|
|
|
|
|
Shareholders’ equity |
|
$ |
235,136 |
|
|
|
|
|
|
$ |
221,608 |
|
|
|
|
|
|
Total liabilities and shareholders’ equity |
|
$ |
2,239,261 |
|
|
|
|
|
|
$ |
2,344,712 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax-equivalent net interest income and spread (Non-GAAP)(1) |
|
|
|
|
$ |
12,119 |
|
1.04 |
% |
|
|
|
$ |
12,076 |
|
1.28 |
% |
Less: tax-equivalent adjustment |
|
|
|
|
|
38 |
|
|
|
|
|
|
|
67 |
|
|
|
Net interest income and spread (GAAP) |
|
|
|
|
$ |
12,081 |
|
1.04 |
% |
|
|
|
$ |
12,009 |
|
1.27 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income/earnings assets |
|
|
|
|
|
|
|
4.85 |
% |
|
|
|
|
|
|
4.26 |
% |
Interest expense/earning assets |
|
|
|
|
|
|
|
2.66 |
% |
|
|
|
|
|
|
2.17 |
% |
Net interest margin |
|
|
|
|
|
|
|
2.19 |
% |
|
|
|
|
|
|
2.09 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax-equivalent interest income/earnings assets (Non-GAAP)(1) |
|
|
|
|
|
|
|
4.85 |
% |
|
|
|
|
|
|
4.27 |
% |
Interest expense/earning assets |
|
|
|
|
|
|
|
2.66 |
% |
|
|
|
|
|
|
2.17 |
% |
Tax-equivalent net interest margin (Non-GAAP)(3) |
|
|
|
|
|
|
|
2.19 |
% |
|
|
|
|
|
|
2.10 |
% |
_______________________ | |
(1) |
Tax-equivalent income and related measures have been adjusted using the federal statutory tax rate of |
(2) |
The Company did not have any loans on non-accrual as of June 30, 2024 and June 30, 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 |
||||||||
|
|
June 30, 2024 |
|
December 31, 2023 |
|
June 30, 2023 |
|
|||
Regulatory Ratios (Bank) |
|
|
|
|
|
|
|
|
|
|
Total risk-based capital (GAAP) |
|
$ |
290,228 |
|
$ |
282,082 |
|
$ |
291,262 |
|
Less: Unrealized losses on available-for-sale securities, net of tax benefit (1) |
|
|
12,661 |
|
|
12,401 |
|
|
28,770 |
|
Less: Unrealized losses on held-to-maturity securities, net of tax benefit (1) |
|
|
12,978 |
|
|
12,469 |
|
|
14,077 |
|
Adjusted total risk-based capital, excluding unrealized losses on available-for-sale and held-to-maturity securities, net of tax benefit (Non-GAAP) |
|
$ |
264,589 |
|
$ |
257,212 |
|
$ |
248,415 |
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 capital (GAAP) |
|
$ |
272,276 |
|
$ |
263,637 |
|
$ |
271,209 |
|
Less: Unrealized losses on available-for-sale securities, net of tax benefit (1) |
|
|
12,661 |
|
|
12,401 |
|
|
28,770 |
|
Less: Unrealized losses on held-to-maturity securities, net of tax benefit (1) |
|
|
12,978 |
|
|
12,469 |
|
|
14,077 |
|
Adjusted tier 1 capital, excluding unrealized losses on available-for-sale and held-to-maturity securities, net of tax benefit (Non-GAAP) |
|
$ |
246,637 |
|
$ |
238,767 |
|
$ |
228,362 |
|
|
|
|
|
|
|
|
|
|
|
|
Risk weighted assets (GAAP) |
|
$ |
1,769,472 |
|
$ |
1,794,769 |
|
$ |
1,813,541 |
|
Less: Risk weighted available-for-sale securities |
|
|
22,343 |
|
|
24,184 |
|
|
56,621 |
|
Less: Risk weighted held-to-maturity securities |
|
|
16,788 |
|
|
17,079 |
|
|
17,425 |
|
Adjusted risk weighted assets, excluding available-for-sale and held-to-maturity securities (Non-GAAP) |
|
$ |
1,730,341 |
|
$ |
1,753,506 |
|
$ |
1,739,495 |
|
|
|
|
|
|
|
|
|
|
|
|
Total average assets for leverage ratio (GAAP) |
|
$ |
2,236,987 |
|
$ |
2,274,911 |
|
$ |
2,343,457 |
|
Less: Unrealized losses on available-for-sale securities, net of tax benefit (1) |
|
|
12,661 |
|
|
12,401 |
|
|
28,770 |
|
Less: Unrealized losses on held-to-maturity securities, net of tax benefit (1) |
|
|
12,978 |
|
|
12,469 |
|
|
14,077 |
|
Adjusted total average assets for leverage ratio, excluding available-for-sale and held-to-maturity securities (Non-GAAP) |
|
$ |
2,211,348 |
|
$ |
2,250,041 |
|
$ |
2,300,610 |
|
|
|
|
|
|
|
|
|
|
|
|
Total risk-based capital ratio (2) |
|
|
|
|
|
|
|
|
|
|
Total risk-based capital ratio (GAAP) |
|
|
16.4 |
% |
|
15.7 |
% |
|
16.1 |
% |
Adjusted total risk-based capital ratio (Non-GAAP) (3) |
|
|
15.3 |
% |
|
14.7 |
% |
|
14.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
Tier 1 capital ratio (4) |
|
|
|
|
|
|
|
|
|
|
Tier 1 risk-based capital ratio (GAAP) |
|
|
15.4 |
% |
|
14.7 |
% |
|
15.0 |
% |
Adjusted tier 1 risk-based capital ratio (Non-GAAP) (5) |
|
|
14.3 |
% |
|
13.5 |
% |
|
13.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
Common equity tier 1 ratio (6) |
|
|
|
|
|
|
|
|
|
|
Common equity tier 1 ratio (GAAP) |
|
|
15.4 |
% |
|
14.7 |
% |
|
15.0 |
% |
Adjusted common equity tier 1 ratio (Non-GAAP) (7) |
|
|
14.3 |
% |
|
13.5 |
% |
|
13.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
Leverage ratio (8) |
|
|
|
|
|
|
|
|
|
|
Leverage ratio (GAAP) |
|
|
12.2 |
% |
|
11.6 |
% |
|
11.6 |
% |
Adjusted leverage ratio (Non-GAAP) (9) |
|
|
11.2 |
% |
|
10.6 |
% |
|
9.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
_______________________ | |
(1) |
Includes tax benefit calculated using the federal statutory tax rate of |
(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) |
||||||||||||||||
|
|
For the Three Months Ended |
|
|
|
|
|
|
||||||||
|
|
June 30, 2024 |
March 31, 2024 |
|
|
|
|
|
|
|||||||
Pre-tax, pre-provision earnings (Non-GAAP) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Income before income taxes |
|
$ |
5,019 |
|
|
$ |
5,414 |
|
|
|
|
|
|
|
|
|
Adjustment: Provision for (recovery of) credit losses |
|
|
(292 |
) |
|
|
(776 |
) |
|
|
|
|
|
|
|
|
Pre-tax, pre-provision earnings (Non-GAAP)(1) |
|
$ |
4,727 |
|
|
$ |
4,638 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
For the Three Months Ended |
For the Six Months Ended |
|||||||||||||
|
|
June 30, 2024 |
June 30, 2023 |
June 30, 2024 |
June 30, 2023 |
|||||||||||
Core non-interest income (Non-GAAP) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Non-interest income (GAAP) |
|
$ |
555 |
|
|
$ |
685 |
|
|
$ |
1,373 |
|
$ |
1,251 |
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
BOLI income |
|
|
- - |
|
|
|
101 |
|
|
|
- - |
|
|
201 |
|
|
Mark-to-market adjustments on NQDC plan assets |
|
|
35 |
|
|
|
83 |
|
|
|
159 |
|
|
172 |
|
|
Loss recognized on sale of available-for-sale securities |
|
|
- - |
|
|
|
- - |
|
|
|
- - |
|
|
(202 |
) |
|
Core non-interest income (Non-GAAP)(2) |
|
$ |
520 |
|
|
$ |
501 |
|
|
$ |
1,214 |
|
$ |
1,080 |
|
|
_______________________ | |
(1) |
Pre-tax, pre-provision earnings is calculated by adjusting income before taxes for provision for (recovery of) credit losses. |
(2) |
Core non-interest income is calculated by adjusting non-interest income for BOLI income, mark-to-market adjustments on NQDC plan assets and loss recognized on the sale of available-for-sale securities. |
Category: Earnings
View source version on businesswire.com: https://www.businesswire.com/news/home/20240724102719/en/
Christopher W. Bergstrom (703) 584-0840
Kent D. Carstater (703) 289-5922
Source: John Marshall
FAQ
What was John Marshall Bancorp's net income for Q2 2024?
How did JMSB's net interest income perform in Q2 2024?
What is the asset quality status of John Marshall Bancorp?
What was the increase in core deposits for JMSB in Q2 2024?
How much did John Marshall Bancorp's total assets amount to as of June 30, 2024?