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Share Name | Share Symbol | Market | Type |
---|---|---|---|
John Marshall Bancorp Inc | NASDAQ:JMSB | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
-0.33 | -1.70% | 19.10 | 18.92 | 19.18 | 19.80 | 18.79 | 19.71 | 7,935 | 18:57:33 |
John Marshall Bancorp, Inc. (Nasdaq: JMSB) (the “Company”), parent company of John Marshall Bank (the “Bank”), reported net income of $3.9 million ($0.27 per diluted common share) for the quarter ended June 30, 2024 and $8.1 million ($0.57 per diluted common share) for the six months ended June 30, 2024. Pre-tax, pre-provision earnings (Non-GAAP) was $4.7 million for the quarter ended June 30, 2024 compared to $4.6 million for the quarter ended March 31, 2024.
Selected Highlights
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 $2.27 billion at June 30, 2024, $2.24 billion at December 31, 2023, and $2.36 billion at June 30, 2023.
Total loans, net of unearned income, increased $57.4 million or 3.2% to $1.83 billion at June 30, 2024, compared to $1.77 billion at June 30, 2023. The increase in loans was primarily attributable to growth in the residential mortgage and investor real estate loan portfolios, partially offset by a decrease in the construction & development loan portfolio.
Total loans, net of unearned income, increased $1.3 million during the quarter ended June 30, 2024 from $1.83 billion at March 31, 2024. As mentioned in the selected highlights above, the Company’s loan pipeline headed into the third quarter of 2024 is robust and gaining momentum.
The carrying value of the Company’s fixed income securities portfolio was $241.6 million at June 30, 2024, $253.4 million at March 31, 2024 and $422.7 million at June 30, 2023. The decrease in carrying value of the Company’s fixed income securities portfolio since June 30, 2023 was primarily attributable to the July 2023 sale of certain available-for-sale investment securities, as previously disclosed. As of June 30, 2024, 95.7% of our bond portfolio carried the implied guarantee of the United States government or one of its agencies. At June 30, 2024, 62% of the fixed income portfolio was invested in amortizing bonds, which provides the Company with a source of steady cash flow. At June 30, 2024, the fixed income portfolio had an estimated weighted average life of 4.2 years. The available-for-sale portfolio comprised approximately 64% of the fixed income securities portfolio and had a weighted average life of 3.0 years at June 30, 2024. The held-to-maturity portfolio comprised approximately 36% of the fixed income securities portfolio and had a weighted average life of 6.3 years at June 30, 2024. The Company did not purchase or sell any fixed income securities during the three month period ended June 30, 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 $796.0 million as of June 30, 2024 compared to $638.9 million as of December 31, 2023 and represented 35.1% 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 June 30, 2024.
Total deposits were $1.91 billion at June 30, 2024, $1.91 billion at December 31, 2023 and $2.05 billion at June 30, 2023. The $11.9 million increase in deposit balances during the quarter was primarily due to a 32.3% annualized increase in non-interest bearing demand deposits of $32.5 million and 14.6% annualized increase in interest bearing demand deposit deposits of $23.4 million. The Bank continued to manage reductions in costlier wholesale deposits including brokered and QwickRate CDs. As of June 30, 2024, the Company had $677.0 million of deposits that were not insured or not collateralized by securities compared to $634.1 million at December 31, 2023.
The Company refinanced its $54.0 million advance and secured an additional $23.0 million from the Bank Term Funding Program (“BTFP”) in January 2024. In doing so, we obtained lower funding costs relative to wholesale deposits and the prior outstanding BTFP advance. The $77.0 million BTFP advance matures January 2025, bears interest at a fixed rate of 4.76% and can be prepaid at any time, in whole or in part, without penalty prior to maturity. Total borrowings as of June 30, 2024 consisted of subordinated debt totaling $24.7 million and the BTFP advance totaling $77.0 million.
Shareholders’ equity increased $16.4 million or 7.5% to $235.3 million at June 30, 2024 compared to $219.0 million at June 30, 2023. Book value per share was $16.54 as of June 30, 2024 compared to $15.50 as of June 30, 2023, an increase of 6.7%. 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 primarily attributable to the July 2023 sale of certain available-for-sale investment securities, as previously disclosed, and decreases in unrealized losses on our available-for-sale investment portfolio due to market value increases. For the three months ended June 30, 2024 basic earnings per share of $0.27 exceeded the $0.25 dividend declared during the quarter. Book value per share increased from $16.51 as of March 31, 2024.
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 16.4%, compared to 16.1% at June 30, 2023 and 15.7% at December 31, 2023 (GAAP). As outlined below, the Bank would continue to remain well above regulatory thresholds for well-capitalized banks at June 30, 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
June 30, 2024
December 31, 2023
June 30, 2023
Total risk-based capital ratio
10.0
%
16.4
%
15.7
%
16.1
%
Tier 1 risk-based capital ratio
8.0
%
15.4
%
14.7
%
15.0
%
Common equity tier 1 ratio
6.5
%
15.4
%
14.7
%
15.0
%
Leverage ratio
5.0
%
12.2
%
11.6
%
11.6
%
Adjusted Bank Regulatory Capital Ratios (Hypothetical Scenario of Selling All Bonds at Fair Market Value - Non-GAAP)
Well-Capitalized Threshold
June 30, 2024
December 31, 2023
June 30, 2023
Adjusted total risk-based capital ratio
10.0
%
15.3
%
14.7
%
14.3
%
Adjusted tier 1 risk-based capital ratio
8.0
%
14.3
%
13.5
%
13.0
%
Adjusted common equity tier 1 ratio
6.5
%
14.3
%
13.5
%
13.0
%
Adjusted leverage ratio
5.0
%
11.2
%
10.6
%
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 $18.4 million or 1.01% of outstanding loans, net of unearned income, compared to $18.7 million or 1.02% of outstanding loans, net of unearned income, at March 31, 2024. The decrease in the allowance as a percentage of outstanding loans, net of unearned income, resulted primarily from changes in the composition of the loan portfolio, improved economic forecasts used in the quantitative portion of the model and an assessment of management’s considerations of qualitative factors combined with the continued strong credit performance of our loan portfolio segments.
At June 30, 2024, the allowance for credit losses on unfunded loan commitments was $0.7 million compared to $0.7 million at March 31, 2024.
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, 93.6% 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 June 30, 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
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
286
$
349,644
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 $3.9 million for the second quarter of 2024, a decrease of $0.6 million when compared to $4.5 million for the second quarter of 2023.
Net interest income for the second quarter of 2024 increased $72 thousand or 0.6% compared to the second quarter of 2023, driven primarily by the increase in yield on and volume of interest-earning assets outpacing the increase in costs of interest-bearing liabilities coupled with the decrease in overall funding balances. The annualized net interest margin for the second quarter of 2024 was 2.19% as compared to 2.09% for the same quarter of the prior year. The increase in net interest margin was primarily due to increases in yields on the Company’s interest-earning assets.
The yield on interest earning assets was 4.85% for the second quarter of 2024 compared to 4.27% 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 and deposits in banks as a result of increases in interest rates and repricing of assets subsequent to the second quarter of 2023. The cost of interest-bearing liabilities was 3.81% for the second quarter of 2024 compared to 2.99% for the same quarter in the prior year. The increase in the cost of interest-bearing liabilities was primarily due the 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 second quarter of 2023. The increase in the overall cost of interest-bearing liabilities in the second quarter of 2024 relative to the same period of the prior year is largely due to rate hikes totaling 5.25% by the Federal Reserve Bank since the beginning of 2023, which has increased cost of funds and compressed net interest margins across the banking industry. The Company continues to improve its funding mix. Average non-interest bearing demand deposits represented 21.8% of average funding for the three months ended June 30, 2024 versus 20.8% for the three months ended June 30, 2023. Average time deposits represented 39.0% of average funding for the three months ended June 30, 2024 versus 42.8% for the three months ended June 30, 2023.
The Company recorded a $292 thousand release of provision for credit losses for the second quarter of 2024 compared to a release of provision for credit losses of $868 thousand for the second quarter of 2023. The release of provision for credit losses during the second quarter of 2024 was primarily a result of improved economic forecasts used in the quantitative portion of the model and an assessment of management’s considerations of existing economic versus historical conditions combined with the continued strong credit performance of our loan portfolio segments.
Non-interest income decreased $130 thousand during the second quarter of 2024 compared to the second quarter of 2023. A portion of this decrease was due to a decrease in bank owned life insurance (“BOLI”) income of $101 thousand due to the surrender of all BOLI policies in July 2023 and a decrease of $48 thousand due to unfavorable mark-to-market adjustments on investments related to the Company’s nonqualified deferred compensation plan (“NQDC”) when compared to the second quarter of 2023. Excluding the effects from the Company’s BOLI policy surrender and mark-to-market adjustments on the Company’s NQDC, core non-interest income (Non-GAAP) was $520 thousand for the second quarter of 2024 compared to $501 thousand for the second quarter of 2023. The increase in core non-interest income (Non-GAAP) was primarily due to a $193 thousand increase in gains recorded on the sale of the guaranteed portion of SBA 7(a) loans due to increased sale activity, partially offset by lower service charges and fees of $149 thousand due to lower penalty fee income recognized on the early withdrawal of certificates of deposit.
Non-interest expense increased $78 thousand or 1.0% during the second quarter of 2024 compared to the second quarter of 2023 primarily due to increases in data processing expense and professional fees, partially offset by lower FDIC insurance expense and lower salaries and employee benefit expense. The increase in data processing fees was primarily due to contractual increases and volume based activity. The increase in professional fees was due to increased contract costs. The decrease in salaries and employee benefits was due to lower deferred compensation expense, lower incentive accruals, and higher direct loan origination costs when compared to the same period of the prior year. Salaries and employee benefit expense is reduced to account for the portion of salary costs incurred to originate a loan and are subsequently amortized into income to match the costs incurred with the economic benefit derived from originating a loan. The decrease in FDIC insurance expense was the result of a lower assessment base. The Company continues to analyze cost savings opportunities on existing leases and material contracts.
For the three months ended June 30, 2024, annualized non-interest expense to average assets was 1.42% compared to 1.34% for the three months ended June 30, 2023. The increase was primarily due to lower average assets when comparing the two periods.
For the three months ended June 30, 2024, the annualized efficiency ratio was 62.6% compared to 61.7% for the three months ended June 30, 2023. The increase was primarily due to a decrease in non-interest income and increase in non-interest expense.
Year-to-Date Results
The Company reported net income of $8.1 million for the six months ended June 30, 2024, a decrease of $2.7 million when compared to the same period in 2023.
Net interest income for the six months ended June 30, 2024 decreased $2.7 million or 10.0% compared to the same period of 2023, driven primarily by the increase in costs of interest-bearing liabilities outpacing the increase in yield on interest-earning assets. The yield on interest earning assets was 4.84% for the six months ended June 30, 2024 compared to 4.21% 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 and deposits in banks as a result of increases in interest rates and repricing of assets subsequent to the second quarter of 2023. The cost of interest-bearing liabilities was 3.81% for the six months ended June 30, 2024 compared to 2.63% for the six months ended June 30, 2023. The increase in the cost of interest-bearing liabilities was primarily due to a 117 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 second quarter of 2023. The annualized net interest margin and tax-equivalent net interest margin for the six months ended June 30, 2024 was 2.14% and 2.15%, respectively, as compared to 2.32% and 2.33%, respectively, for the same period in the prior year. The decrease in net interest margin was primarily due to the increase in cost of interest-bearing deposits, which was partially offset by an increase in yields on the Company’s interest-earning assets.
The Company recorded a $1.1 million release of provision for credit losses for the six months ended June 30, 2024 compared to $1.6 million release of provision for credit losses for the six months ended June 30, 2023. The release of provision for credit losses during the six months ended June 30, 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 an assessment of management’s considerations of qualitative factors combined with the continued strong credit performance of our loan portfolio segments.
Non-interest income increased $122 thousand during the six months ended June 30, 2024 compared to the same period of 2023. Excluding the effects from decreased BOLI income of $201 thousand, unfavorable mark-to-market adjustments on the Company’s NQDC totaling $13 thousand, and non-recurring losses of $202 thousand recognized on the sale of certain investment securities during the first quarter of 2023, core non-interest income (Non-GAAP) was $1.2 million for the six months ended June 30, 2024 compared to $1.1 million for the same period in 2023. The increase in core non-interest income (Non-GAAP) was primarily due to increases of $326 thousand in gains recorded on the sale of the guaranteed portion of SBA 7(a) loans, partially offset by decreases of $203 thousand in other service charges and fees due to lower penalty fee income recognized on the early withdrawal of certificates of deposit.
Non-interest expense increased $232 thousand or 1.5% during the six months ended June 30, 2024 compared to the same period in 2023 primarily due to previously disclosed non-recurring expenses totaling $138 thousand incurred during the first quarter of 2024 in connection with a strategic opportunity that was explored and ultimately did not materialize. The remaining $93 thousand increase was due to increases in data processing expense and professional fees, partially offset by lower salaries and employee benefit expense as discussed in the quarterly results.
For the six months ended June 30, 2024, annualized non-interest expense to average assets was 1.41% compared to 1.34% for the six months ended June 30, 2023. The increase was primarily due to lower average assets when comparing the two periods.
For the six months ended June 30, 2024, the annualized efficiency ratio was 62.8% compared to 56.3% for the six months ended June 30, 2023. The increase 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 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:
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 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. Metro area. The Bank offers a comprehensive line of sophisticated banking products and services that rival those of the largest banks along with experienced staff to help achieve customers’ financial goals. Dedicated Relationship Managers serve as direct points-of-contact, providing subject matter expertise in a variety of niche industries including Charter and Private Schools, Government Contractors, Health Services, Nonprofits and Associations, Professional Services, Property Management Companies and Title Companies. Learn more at www.johnmarshallbank.com.
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 of 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 Six Months Ended
June 30,
June 30,
2024
2023
2024
2023
Selected Balance Sheet Data
Cash and cash equivalents
$
182,605
$
129,551
$
182,605
$
129,551
Total investment securities
249,582
429,954
249,582
429,954
Loans, net of unearned income
1,827,187
1,769,801
1,827,187
1,769,801
Allowance for loan credit losses
18,433
20,629
18,433
20,629
Total assets
2,269,757
2,364,250
2,269,757
2,364,250
Non-interest bearing demand deposits
437,169
433,931
437,169
433,931
Interest bearing deposits
1,475,671
1,612,378
1,475,671
1,612,378
Total deposits
1,912,840
2,046,309
1,912,840
2,046,309
Federal Reserve Bank borrowings
77,000
54,000
77,000
54,000
Shareholders' equity
235,346
218,970
235,346
218,970
Summary Results of Operations
Interest income
$
26,791
$
24,455
$
53,710
$
47,908
Interest expense
14,710
12,446
29,885
21,430
Net interest income
12,081
12,009
23,825
26,478
Provision for (recovery of) credit losses
(292)
(868)
(1,068)
(1,642)
Net interest income after provision for (recovery of) credit losses
12,373
12,877
24,893
28,120
Non-interest income
555
685
1,373
1,251
Non-interest expense
7,909
7,831
15,833
15,601
Income before income taxes
5,019
5,731
10,433
13,770
Net income
3,905
4,490
8,109
10,794
Per Share Data and Shares Outstanding
Earnings per share - basic
$
0.27
$
0.32
$
0.57
$
0.76
Earnings per share - diluted
$
0.27
$
0.32
$
0.57
$
0.76
Book value per share
$
16.54
$
15.50
$
16.54
$
15.50
Weighted average common shares (basic)
14,173,245
14,077,658
14,152,115
14,150,155
Weighted average common shares (diluted)
14,200,171
14,143,253
14,189,517
14,228,155
Common shares outstanding at end of period
14,229,853
14,126,138
14,229,853
14,126,138
Performance Ratios
Return on average assets (annualized)
0.70
%
0.77
%
0.72
%
0.93
%
Return on average equity (annualized)
6.68
%
8.13
%
6.95
%
9.85
%
Net interest margin
2.19
%
2.10
%
2.15
%
2.33
%
Tax-equivalent net interest margin (Non-GAAP)
2.19
%
2.09
%
2.14
%
2.32
%
Non-interest income as a percentage of average assets (annualized)
0.10
%
0.12
%
0.12
%
0.11
%
Non-interest expense to average assets (annualized)
1.42
%
1.34
%
1.41
%
1.34
%
Efficiency ratio
62.6
%
61.7
%
62.8
%
56.3
%
Asset Quality
Non-performing assets to total assets
- -
%
- -
%
- -
%
- -
%
Non-performing loans to total loans
- -
%
- -
%
- -
%
- -
%
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
1.01
%
1.17
%
1.01
%
1.17
%
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
$
- -
$
- -
$
- -
$
- -
Non-accrual loans
- -
- -
- -
- -
Other real estate owned
- -
- -
- -
- -
Non-performing assets (1)
- -
- -
- -
- -
Capital Ratios (Bank Level)
Equity / assets
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 $77,268, $79,532, and $79,634 at 6/30/2024, 12/31/2023, and 6/30/2023, respectively.
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 $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, 14,229,853 at 6/30/24 including 46,253 unvested shares, issued and outstanding, 14,148,533 at 12/31/2023 including 47,318 unvested shares, and 14,126,138 at 6/30/2023 including 46,291 unvested shares
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
$250,000 or more
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
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 21%. The annualized taxable-equivalent adjustments utilized in the above table to compute yields aggregated to $83 thousand and $132 thousand for the six months ended June 30, 2024 and June 30, 2023, respectively.
(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 21%. The annualized taxable-equivalent adjustments utilized in the above table to compute yields aggregated to $38 thousand and $67 thousand for the three months ended June 30, 2024 and June 30, 2023, respectively.
(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 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)
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
1 Year John Marshall Bancorp Chart |
1 Month John Marshall Bancorp Chart |
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