John Marshall Bancorp, Inc. Reports 19.0% Increase in Net Income, Strong Core Loan and Deposit Growth and Excellent Asset Quality

John Marshall Bancorp, Inc. (Nasdaq: JMSB) (the “Company”), parent company of John Marshall Bank (the “Bank”), today reported net income of $8.0 million ($0.57 per diluted common share) for the quarter ended September 30, 2022. The current quarter’s result compares favorably to net income of $6.8 million ($0.48 per diluted common share) for the third quarter of 2021.

Third Quarter Highlights

  • Fifteenth Consecutive Quarter of Record Earnings – The Company reported record net income of $8.0 million for the third quarter of 2022, a $1.2 million or 19.0% increase over the $6.8 million reported for the third quarter of 2021. Earnings per diluted share for the three months ended September 30, 2022 were $0.57, an 18.8% increase over the $0.48 reported for the three months ended September 30, 2021.
  • Strong Returns – Annualized Return on Average Assets (“ROAA”) was 1.38% and annualized Return on Average Equity (“ROAE”) was 15.07% for the three months ended September 30, 2022. ROAA and ROAE were 1.30% and 13.35%, respectively, for the three months ended September 30, 2021.
  • Robust Loan Production – Excluding Paycheck Protection Program (“PPP”) loans, gross loans net of unearned income (“Core Loans”) grew $196.0 million or 12.8% from September 30, 2021 to September 30, 2022. The Company remains highly selective when underwriting potential borrowers.
  • Increased Core Deposits – The Company continued to grow core deposits. Non-interest bearing deposits grew $71.3 million or 15.4% from September 30, 2021 to September 30, 2022. Non-interest bearing deposits grew $22.9 million or 17.7% annualized from June 30, 2022 to September 30, 2022. The non-interest bearing deposit growth rate exceeded that of total deposits, thereby increasing the ratio of non-interest bearing deposit to total deposits from 25.2% as of September 30, 2021 to 25.9% as of September 30, 2022.
  • Operating Leverage – Revenues (net interest income plus non-interest income) grew 10.0% for the three months ended September 30, 2022 relative to the three months ended September 30, 2021. Over the same period, overhead grew only 4.4%. The Company remains vigilant on identifying more cost effective means to achieve future growth. The efficiency ratio for the third quarter of 2022 was 43.9% compared to 46.2% for the third quarter of 2021. The ratio of annualized non-interest expense to average assets was 1.36% for the third quarter of 2022 compared to 1.46% for the third quarter of 2021.
  • No Non-performing Assets; No Loans More Than 15 Days Past Due – For the twelfth consecutive quarter, the Company had no nonperforming loans, no other real estate owned, and no loans 30 days or more past due. As of September 30, 2022, there were no loans more than 15 days past due. There were no charge offs during the quarter. The Company believes its allowance for loan losses is appropriate for the inherent risks and uncertainties associated with the portfolio.

Chris Bergstrom, President and Chief Executive Officer, on third quarter results, “We are pleased to announce that third quarter results were among the best in the Company’s history. We benefited from another quarter of deposit and loan growth. Growth, operating leverage and exceptional credit quality enabled us to report our 15th consecutive quarter of record earnings. We closed the quarter with strong capital and liquidity levels and well positioned to prudently pursue continued growth.”

Balance Sheet and Credit Quality

Total assets were $2.31 billion at September 30, 2022, $2.32 billion at June 30, 2022 and $2.10 billion at September 30, 2021. Total assets during the most recent quarter were impacted by the Company’s redemption of its subordinated debt issuance as described further below. Asset growth from September 30, 2021 to September 30, 2022 was $210.0 million or 10.0%.

Total loans, net of unearned income, increased by 7.7% to $1.73 billion at September 30, 2022, compared to $1.60 billion at September 30, 2021. Core Loans as of September 30, 2022 grew 12.8% to $1.73 billion as compared to $1.53 billion at September 30, 2021. The year-over-year increase in the loan portfolio was primarily attributable to growth in the investor real estate, residential mortgage, commercial owner-occupied real estate, and multi-family loan portfolios.

Total loans, net of unearned income, increased $32.5 million during the quarter ended September 30, 2022 or 7.6% annualized from $1.69 billion at June 30, 2022. Core Loans increased $35.5 million during the quarter ended September 30, 2022 or 8.3% annualized from June 30, 2022. The increase in loans was primarily attributable to growth in the investor real estate, residential mortgage, and construction and land development loan portfolios.

The Company’s portfolio of investments in fixed income securities was $467.1 million at September 30, 2022, $467.4 million at June 30, 2022, and $342.1 million at September 30, 2021. All but $13.7 million of the fixed income portfolio is backed by the explicit or implicit guarantees of the United States Government or one of its agencies.

Total deposits were $2.06 billion at September 30, 2022, $2.04 billion at June 30, 2022, and $1.84 billion at September 30, 2021. Deposit growth was 12.3% during the past twelve months, as non-interest bearing demand deposits grew 15.4%, interest-bearing demand deposits grew 11.8%, time deposits grew 11.1%, and saving deposits grew 8.5%.

Total borrowings, defined as Federal Home Loan Bank advances and subordinated debt, decreased by 50.4% or $25.0 million to $24.6 million at September 30, 2022 compared to $49.6 million at June 30, 2022. The Company completed a private placement of a $25.0 million fixed-to-floating 5.25% subordinated note on June 15, 2022 (“2022 note”). On July 15, 2022, the earliest available call date, the Company utilized the proceeds from the 2022 note issuance to redeem its $25.0 million fixed-to-floating 5.75% subordinated notes that were issued on July 6, 2017 (“2017 notes”), which was the driver of the quarter-over-quarter decrease.

Shareholders’ equity remained flat at $202.2 million at September 30, 2022 when compared to September 30, 2021, as the increases in retained earnings and additional paid-in capital were offset by the increase in the unrealized loss on our available-for-sale investment portfolio. Book value per share was $14.37 as of September 30, 2022 compared to $14.82 as of September 30, 2021. The year-over-year change in book value per share was primarily due to increased unrealized losses on our available-for-sale investment portfolio, increased share count from shareholder option exercises and restricted share award issuances, and cash dividends paid, partially offset by the Company’s earnings over the previous twelve months. The increase in unrealized losses on our available-for-sale investment portfolio was due to market value changes as a result of rising interest rates. The Bank’s capital ratios remain well above regulatory thresholds for well-capitalized banks. As of September 30, 2022, the Bank’s total risk-based capital ratio was 15.4%, compared to 15.2% at September 30, 2021.

The Company recorded no net charge-offs during the third quarter of 2022, the second quarter of 2022, and the third quarter of 2021. As of September 30, 2022, the Company had no non-accrual loans, no loans more than 15 days past due and no other real estate owned assets.

At September 30, 2022, the allowance for loan losses was $20.0 million or 1.16% of outstanding loans, net of unearned income, compared to $20.0 million or 1.18% of outstanding loans, net of unearned income, at June 30, 2022. The decrease in the allowance as a percentage of outstanding loans, net of unearned income, was primarily due to changes in the loan portfolio’s composition as well as net changes in qualitative adjustments.

Income Statement Review

Quarterly Results

Net income for the third quarter of 2022 increased $1.2 million or 19.0% to $8.0 million compared to $6.8 million for the third quarter of 2021. Net income increased $163 thousand or 2.1% compared to $7.9 million for the second quarter of 2022.

Net interest income for the third quarter of 2022 increased $1.5 million or 9.4% compared to the third quarter of 2021, driven primarily by growth in the Company’s loan and investment portfolios. The yield on interest earning assets was 3.71% for the third quarter of 2022 compared to 3.52% for the same period in 2021. The increase in yield on interest earning assets was primarily due to higher yields on the Company’s loan and investment portfolios as a result of increases in interest rates during the first nine months of 2022. The cost of interest-bearing liabilities was 0.90% for the third quarter of 2022 compared to 0.54% for the same quarter of the prior year. The increase in the cost of interest-bearing liabilities was primarily due to a 0.36% 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 NOW and money market deposit accounts during the first nine months of 2022. The annualized net interest margin for the third quarter of 2022 was 3.10% as compared to 3.15% for the same quarter of the prior year. The decrease in net interest margin was primarily due to the increase in cost of interest-bearing deposits, which was partially offset by increases in yields on the Company’s loan and investment portfolios.

The Company did not record a provision for loan losses for the third quarter of 2022, compared to a $325 thousand provision for the third quarter of 2021. The decrease in the provision for loan losses as compared to the same period in 2021 primarily reflects changes in the Company’s evaluation of environmental factors impacting the Company’s loan portfolio during 2022. During 2021, the environmental or qualitative factor allocations within the allowance for loan losses were adjusted to account for the risks to certain industry subgroups and portfolio segments within our portfolio as a result of the continuing COVID-19 pandemic. The decrease in the provision for loan losses primarily reflects an estimated decrease in uncertainty as it relates to the estimated impact of the COVID-19 pandemic on the Company’s loan portfolio and the broader economy.

Non-interest income increased $125 thousand or 38.5% during the third quarter of 2022 compared to the third quarter of 2021. The increase in non-interest income was primarily due to a $153 thousand increase in bank owned life insurance (“BOLI”) income as a result of a benefit claim realized. In addition, we realized increases in insurance commissions, service charges and fees on deposit accounts, and interchange and other fee income. The increase was partially offset by mark-to-market adjustments of $(93) thousand resulting from a reduction in value of investments related to the Company’s nonqualified deferred compensation plan.

Non-interest expense increased $335 thousand or 4.4% for the three months ended September 30, 2022 compared to the three months ended September 30, 2021. The increase in non-interest expense was primarily due to increases in data processing fees, salaries and employee benefits, and franchise tax expense. The increase in data processing fees was primarily due to investments in technology solutions supporting our operations. The increase in salaries and employee benefits were driven by an increase in accrued incentive compensation tied to the Company’s performance that was offset in part by lower employee insurance costs as well as lower accruals related to deferred compensation. The increase in state franchise taxes was due to an increase in the Bank’s equity as that is the basis the Commonwealth of Virginia uses to assess taxes on banking institutions. The increase in non-interest expense was partially offset by decreases in furniture and equipment expense and occupancy expense of premises. The decrease in furniture and fixture expense was due to lower depreciation expense on fixed assets. The decrease in occupancy expense of premises was due to a decrease in office rent as a result of the renegotiation of certain leases.

For the three months ended September 30, 2022, annualized non-interest expense to average assets was 1.36% compared to 1.46% for the three months ended September 30, 2021. The decrease was primarily due to lower occupancy expense and furniture and equipment expense, coupled with continued cost consciousness.

For the three months ended September 30, 2022, the annualized efficiency ratio was 43.9% compared to 46.2% for the three months ended September 30, 2021. The decrease was primarily due to increases in net interest income and non-interest income outpacing the modest increase in non-interest expense.

Year-to-Date Results

Net income for the nine months ended September 30, 2022 increased $5.7 million or 31.7% to $23.6 million compared to $17.9 million for the nine months ended September 30, 2021. The results for the nine months ended September 30, 2022 reflect a combination of the impact of an increase in net interest income, a decrease in provision for loan loss expense, and a decrease in non-interest expense, which were partially offset by a decrease in non-interest income.

Net interest income for the nine months ended September 30, 2022 increased $4.0 million or 8.1% compared to the nine months ended September 30, 2021 and was driven primarily by growth in the Company’s loan and investment portfolios. The yield on interest earning assets was 3.65% for the nine months ended September 30, 2022 compared to 3.74% for the same period in 2021. The decrease in yield on interest earning assets was primarily due to a lower yield on the Company’s commercial real estate loan portfolio. The cost of interest-bearing liabilities was 0.67% for the nine months ended September 30, 2022 compared to 0.63% for the same period of the prior year. The increase in the cost of interest-bearing liabilities was primarily due to higher interest expense on subordinated debt as a result of carrying the 2017 notes and the 2022 note from June 15, 2022 until July 15, 2022, and increases in the cost of interest-bearing deposits as a result of an increase in rates offered on NOW and money market deposit accounts during the first nine months of 2022. The annualized net interest margin for the nine months ended September 30, 2022 was 3.19% as compared to 3.30% for the same quarter of the prior year. The decrease in net interest margin was primarily due to increases in the cost of interest-bearing deposits and subordinated debt coupled with a decrease in yield on the Company’s loan portfolio. The decrease in yield on the Company’s loan portfolio was primarily due to a modest decrease in the weighted average yield of commercial real estate loans originated subsequent to September 30, 2021.

The Company did not record a provision for loan losses for the nine months ended September 30, 2022, compared to a $2.8 million provision for the nine months ended September 30, 2021. The decrease in the provision for loan losses as compared to the same period in 2021 primarily reflects changes in the Company’s evaluation of environmental factors impacting the Company’s loan portfolio during 2022. During 2021, the environmental or qualitative factor allocations within the allowance for loan losses were adjusted to account for the risks to certain industry subgroups and portfolio segments within our portfolio as a result of the continuing COVID-19 pandemic. The decrease in the provision for loan losses primarily reflects an estimated decrease in uncertainty as it relates to the estimated impact of the COVID-19 pandemic on the Company’s loan portfolio and the broader economy.

Non-interest income decreased $233 thousand or 19.3% during the nine months ended September 30, 2022 compared to the nine months ended September 30, 2021. The decrease in non-interest income was primarily due to mark-to-market adjustments of $(583) thousand resulting from a reduction in value of investments related to the Company’s nonqualified deferred compensation plan. The decrease in non-interest income was partially offset by a non-recurring BOLI related benefit claim realized and increases in insurance commissions and interchange and other fee income due to higher production and increased customer activity, respectively. During the nine months ended September 30, 2021, the Company also realized a $10 thousand gain on a called security. Excluding the impacts of the mark-to-market adjustments, gain on the called security, and BOLI related benefit claim, non-interest income increased $203 thousand or 18.3%.

Non-interest expense decreased $158 thousand or 0.6% during the nine months ended September 30, 2022 compared to the nine months ended September 30, 2021. The decrease in non-interest expense was primarily due to non-recurring legal and professional fees incurred in 2021, as well as decreases in marketing expense and FDIC insurance fees. The decrease in marketing expense was primarily due to lower marketing vendor related expenses. The decrease in FDIC insurance fees was primarily due to lower insurance premiums. These decreases were partially offset by increases in state franchise taxes as a result of an increase in the Bank’s equity year-over-year and data processing fees due to new investments in technology solutions to support our operations.

For the nine months ended September 30, 2022, annualized non-interest expense to average assets was 1.45% compared to 1.63% for the nine months ended September 30, 2021. The decrease was primarily due to non-recurring legal and professional fees incurred in 2021 as well as decreases in marketing expense and FDIC insurance premiums.

For the nine months ended September 30, 2022, the annualized efficiency ratio was 45.3% compared to 49.0% for the nine months ended September 30, 2021. The decrease was primarily due to the increase in net interest income coupled with a decrease in other expenses. The increase was partially offset by a decrease in non-interest income.

About John Marshall Bancorp, Inc.

John Marshall Bancorp, Inc. is the bank holding company for John Marshall Bank. The Bank is a $2.31 billion bank headquartered in Reston, Virginia with eight full-service branches located in Alexandria, Arlington, Loudoun, Prince William, Reston, and Tysons, Virginia, as well as Rockville, Maryland, and Washington, D.C. with one loan production office in Arlington, Virginia. The Bank is dedicated to providing exceptional value, personalized service and convenience to local businesses and professionals in the Washington D.C. Metro area. The Bank offers a comprehensive line of sophisticated banking products and services that rival those of the largest banks along with experienced staff to help achieve customers’ financial goals. Dedicated Relationship Managers serve as direct points-of-contact, providing subject matter expertise in a variety of niche industries including Charter and Private Schools, Government Contractors, Health Services, Nonprofits and Associations, Professional Services, Property Management Companies, and Title Companies. Learn more at www.johnmarshallbank.com.

In addition to historical information, this press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are based on certain assumptions and describe future plans, strategies and expectations of the Company. These forward-looking statements are generally identified by use of the words “believe,” “expect,” “intend,” “anticipate,” “estimate,” “project,” “will,” “should,” “may,” “view,” “opportunity,” “potential,” or similar expressions or expressions of confidence. The Company’s ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on the operations of the Company and its subsidiary include, but are not limited to the following: changes in interest rates, general economic conditions, public health crises (such as the governmental, social and economic effects of COVID-19), levels of unemployment in the Bank’s lending area, real estate market values in the Bank’s lending area, future natural disasters, the level of prepayments on loans and mortgage-backed securities, legislative/regulatory changes, monetary and fiscal policies of the U.S. Government including policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System, the quality or composition of the loan or investment portfolios, demand for loan products, deposit flows, competition, demand for financial services in the Company’s market area, accounting principles and guidelines, and other conditions which by their nature are not susceptible to accurate forecast, and are subject to significant uncertainty. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. The Company does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions which may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events. Annualized, pro forma, projected and estimated numbers are used for illustrative purpose only, are not forecasts and may not reflect actual results.

John Marshall Bancorp, Inc.

Financial Highlights (Unaudited)

(Dollar amounts in thousands, except per share data)

 

 

 

 

 

 

At or For the Three Months Ended

 

At or For the Nine Months Ended

 

 

September 30,

 

September 30,

 

 

2022

 

2021

 

2022

 

2021

 

Selected Balance Sheet Data

 

 

 

 

Cash and cash equivalents

$

74,756

 

$

121,074

 

$

74,756

 

$

121,074

 

Total investment securities

 

473,478

 

 

348,742

 

 

473,478

 

 

348,742

 

Loans, net of unearned income

 

1,725,114

 

 

1,602,377

 

 

1,725,114

 

 

1,602,377

 

Allowance for loan losses

 

(20,032)

 

(19,706)

 

(20,032)

 

(19,706)

Total assets

 

2,305,540

 

 

2,095,504

 

 

2,305,540

 

 

2,095,504

 

Non-interest bearing demand deposits

 

535,186

 

 

463,868

 

 

535,186

 

 

463,868

 

Interest bearing deposits

 

1,528,155

 

 

1,373,680

 

 

1,528,155

 

 

1,373,680

 

Total deposits

 

2,063,341

 

 

1,837,548

 

 

2,063,341

 

 

1,837,548

 

Shareholders' equity

 

202,212

 

 

202,222

 

 

202,212

 

 

202,222

 

 

 

 

 

 

Summary Results of Operations

 

 

 

 

Interest income

$

21,208

 

$

18,042

 

$

60,509

 

$

55,416

 

Interest expense

 

3,516

 

 

1,876

 

 

7,593

 

 

6,477

 

Net interest income

 

17,692

 

 

16,166

 

 

52,916

 

 

48,939

 

Provision for loan losses

 

- -

 

 

325

 

 

- -

 

 

2,780

 

Net interest income after provision for loan losses

 

17,692

 

 

15,841

 

 

52,916

 

 

46,159

 

Non-interest income

 

450

 

 

325

 

 

973

 

 

1,206

 

Non-interest expense

 

7,958

 

 

7,623

 

 

24,425

 

 

24,583

 

Income before income taxes

 

10,184

 

 

8,543

 

 

29,464

 

 

22,782

 

Net income

 

8,045

 

 

6,761

 

 

23,601

 

 

17,914

 

 

 

 

 

 

Per Share Data and Shares Outstanding

 

 

 

 

Earnings per share - basic

$

0.57

 

$

0.50

 

$

1.69

 

$

1.31

 

Earnings per share - diluted

$

0.57

 

$

0.48

 

$

1.67

 

$

1.29

 

Book value per share

$

14.37

 

$

14.82

 

$

14.37

 

$

14.82

 

Weighted average common shares (basic)

 

13,989,414

 

 

13,580,538

 

 

13,902,324

 

 

13,570,449

 

Weighted average common shares (diluted)

 

14,108,286

 

 

13,883,104

 

 

14,065,887

 

 

13,865,226

 

Common shares outstanding at end of period

 

14,070,080

 

 

13,644,985

 

 

14,070,080

 

 

13,644,985

 

 

 

 

 

 

Performance Ratios

 

 

 

 

Return on average assets (annualized)

 

1.38

%

 

1.30

%

 

1.40

%

 

1.19

%

Return on average equity (annualized)

 

15.07

%

 

13.35

%

 

15.03

%

 

12.32

%

Net interest margin

 

3.10

%

 

3.15

%

 

3.19

%

 

3.30

%

Non-interest income as a percentage of average assets (annualized)

 

0.08

%

 

0.06

%

 

0.06

%

 

0.08

%

Non-interest expense to average assets (annualized)

 

1.36

%

 

1.46

%

 

1.45

%

 

1.63

%

Efficiency ratio

 

43.9

%

 

46.2

%

 

45.3

%

 

49.0

%

 

 

 

 

 

Asset Quality

 

 

 

 

Non-performing assets to total assets

 

- -

%

 

- -

%

 

- -

%

 

- -

%

Non-performing loans to total loans

 

- -

%

 

- -

%

 

- -

%

 

- -

%

Allowance for loan losses to non-performing loans

 

N/M

 

 

N/M

 

 

N/M

 

 

N/M

 

Allowance for loan losses to total loans (1)

 

1.16

%

 

1.23

%

 

1.16

%

 

1.23

%

Net charge-offs (recoveries) to average loans (annualized)

 

- -

%

 

- -

%

 

- -

%

 

0.01

%

 

 

 

 

 

Loans 30-89 days past due and accruing interest

$

- -

 

$

- -

 

$

- -

 

$

- -

 

Non-accrual loans

 

- -

 

 

- -

 

 

- -

 

 

- -

 

Other real estate owned

 

- -

 

 

- -

 

 

- -

 

 

- -

 

Non-performing assets (2)

 

- -

 

 

- -

 

 

- -

 

 

- -

 

Troubled debt restructurings (total)

 

530

 

 

554

 

 

530

 

 

554

 

Performing in accordance with modified terms

 

530

 

 

554

 

 

530

 

 

554

 

Not performing in accordance with modified terms

 

- -

 

 

- -

 

 

- -

 

 

- -

 

 

 

 

 

 

Capital Ratios (Bank Level)

 

 

 

 

Equity / assets

 

9.7

%

 

10.8

%

 

 

9.7

%

 

10.8

%

Total risk-based capital ratio

 

15.4

%

 

15.2

%

 

15.4

%

 

15.2

%

Tier 1 risk-based capital ratio

 

14.3

%

 

14.0

%

 

14.3

%

 

14.0

%

Leverage ratio

 

11.0

%

 

10.8

%

 

11.0

%

 

10.8

%

Common equity tier 1 ratio

 

14.3

%

 

14.0

%

 

14.3

%

 

14.0

%

 

 

 

 

 

Other Information

 

 

 

 

Number of full time equivalent employees

 

136

 

 

142

 

 

136

 

 

142

 

# Full service branch offices

 

8

 

 

8

 

 

8

 

 

8

 

# Loan production or limited service branch offices

 

1

 

 

1

 

 

1

 

 

1

 

(1)

The allowance for loan losses to total loans, excluding PPP loans, net of unearned income, of $133 thousand, was 1.16% at September 30, 2022. The allowance for loan losses to total loans, excluding PPP loans, net of unearned income, of $73.4 million, was 1.29% at September 30, 2021. PPP loans received no allocations in the allowance estimate due to the underlying guarantees.

(2)

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

John Marshall Bancorp, Inc.

 

 

 

 

 

 

Consolidated Balance Sheets

(Dollar amounts in thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

% Change

 

September 30,

December 31,

September 30,

Last Nine

Year Over

 

2022

2021

2021

Months

Year

Assets

(Unaudited)

(Unaudited)

(Unaudited)

 

 

Cash and due from banks

$

14,957

$

2,920

$

10,624

412.2

%

40.8

%

Interest-bearing deposits in banks

 

59,799

 

102,879

 

110,450

(41.9)

%

(45.9)

%

Securities available-for-sale, at fair value

 

366,546

 

239,300

 

238,628

53.2

%

53.6

%

Securities held-to-maturity, fair value of $81,765 and $103,258 at 9/30/2022 and 12/31/2021, respectively.

 

100,598

 

105,509

 

103,486

(4.7)

%

(2.8)

%

Restricted securities, at cost

 

4,421

 

4,951

 

4,948

(10.7)

%

(10.7)

%

Equity securities, at fair value

 

1,913

 

1,869

 

1,680

2.4

%

13.9

%

Loans, net of unearned income

 

1,725,114

 

1,666,469

 

1,602,377

3.5

%

7.7

%

Allowance for loan losses

 

(20,032)

 

(20,032)

 

(19,706)

-

%

1.7

%

Net loans

 

1,705,082

 

1,646,437

 

1,582,671

3.6

%

7.7

%

Bank premises and equipment, net

 

1,331

 

1,620

 

1,754

(17.8)

%

(24.1)

%

Accrued interest receivable

 

4,744

 

4,943

 

4,661

(4.0)

%

1.8

%

Bank owned life insurance

 

21,071

 

20,998

 

20,896

0.3

%

0.8

%

Right of use assets

 

3,936

 

4,913

 

5,261

(19.9)

%

(25.2)

%

Other assets

 

21,142

 

12,970

 

10,445

63.0

%

102.4

%

 

 

 

 

 

 

Total assets

$

2,305,540

$

2,149,309

$

2,095,504

7.3

%

10.0

%

 

 

 

 

 

 

Liabilities and Shareholders' Equity

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

Deposits:

 

 

 

 

 

Non-interest bearing demand deposits

$

535,186

$

488,838

$

463,868

9.5

%

15.4

%

Interest-bearing demand deposits

 

705,593

 

633,901

 

630,912

11.3

%

11.8

%

Savings deposits

 

102,909

 

101,376

 

94,840

1.5

%

8.5

%

Time deposits

 

719,653

 

657,438

 

647,928

9.5

%

11.1

%

Total deposits

 

2,063,341

 

1,881,553

 

1,837,548

9.7

%

12.3

%

Federal Home Loan Bank advances

 

- -

 

18,000

 

18,000

N/M

 

N/M

 

Subordinated debt

 

24,603

 

24,728

 

24,716

(0.5)

%

(0.5)

%

Accrued interest payable

 

643

 

843

 

611

(23.7)

%

5.2

%

Lease liabilities

 

4,186

 

5,182

 

5,534

(19.2)

%

(24.4)

%

Other liabilities

 

10,555

 

10,533

 

6,873

0.2

%

 

53.6

%

Total liabilities

 

2,103,328

 

1,940,839

 

1,893,282

8.4

%

11.1

%

 

 

 

 

 

 

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, 14,070,080 at 9/30/2022 including 58,046 unvested shares, 13,745,598 shares at 12/31/2021 including 75,826 unvested shares and 13,644,985 at 9/30/2021, including 60,575 unvested shares

 

140

 

137

 

136

2.2

%

2.9

%

Additional paid-in capital

 

94,560

 

91,107

 

90,607

3.8

%

4.4

%

Retained earnings

 

138,428

 

117,626

 

110,079

17.7

%

25.8

%

Accumulated other comprehensive income (loss)

 

(30,916)

 

(400)

 

1,400

N/M

 

N/M

 

 

 

 

 

 

 

Total shareholders' equity

 

202,212

 

208,470

 

202,222

(3.0)

%

(0.0)

%

 

 

 

 

 

 

Total liabilities and shareholders' equity

$

2,305,540

$

2,149,309

$

2,095,504

7.3

%

10.0

%

John Marshall Bancorp, Inc.

 

 

 

 

 

 

 

Consolidated Statements of Income

(Dollar amounts in thousands, except per share data)

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

September 30,

 

September 30,

 

 

2022

 

2021

 

% Change

 

2022

 

2021

 

% Change

 

(Unaudited)

(Unaudited)

 

(Unaudited)

(Unaudited)

 

Interest and Dividend Income

 

 

 

 

 

 

Interest and fees on loans

$

18,222

 

$

16,737

 

8.9

%

 

$

53,740

 

 

$

52,075

 

3.2

%

Interest on investment securities, taxable

 

2,323

 

 

1,159

 

100.4

%

 

 

5,597

 

 

 

2,921

 

91.6

%

Interest on investment securities, tax-exempt

 

30

 

 

30

 

0.0

%

 

 

90

 

 

 

90

 

0.0

%

Dividends

 

62

 

 

65

 

(4.6)

%

 

 

185

 

 

 

196

 

(5.6)

%

Interest on deposits in banks

 

571

 

 

51

 

N/M

 

 

 

897

 

 

 

134

 

N/M

 

Total interest and dividend income

 

21,208

 

 

18,042

 

17.5

%

 

 

60,509

 

 

 

55,416

 

9.2

%

 

 

 

 

 

 

 

 

 

 

 

 

Interest Expense

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

3,068

 

 

1,473

 

108.3

%

 

 

6,090

 

 

 

5,268

 

15.6

%

Federal Home Loan Bank advances

 

- -

 

 

31

 

(100.0)

%

 

 

42

 

 

 

94

 

(55.3)

%

Subordinated debt

 

448

 

 

372

 

20.4

%

 

 

1,461

 

 

 

1,115

 

31.0

%

Total interest expense

 

3,516

 

 

1,876

 

87.4

%

 

 

7,593

 

 

 

6,477

 

17.2

%

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

17,692

 

 

16,166

 

9.4

%

 

 

52,916

 

 

 

48,939

 

8.1

%

 

 

 

 

 

 

 

 

 

 

 

 

Provision for Loan Losses

 

- -

 

 

325

 

N/M

 

 

 

- -

 

 

 

2,780

 

N/M

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income after provision for loan losses

 

17,692

 

 

15,841

 

11.7

%

 

 

52,916

 

 

 

46,159

 

14.6

%

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest Income

 

 

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

 

79

 

 

70

 

12.9

%

 

 

240

 

 

 

188

 

27.7

%

Bank owned life insurance

 

255

 

 

102

 

150.0

%

 

 

445

 

 

 

309

 

44.0

%

Other service charges and fees

 

175

 

 

120

 

45.8

%

 

 

469

 

 

 

339

 

38.3

%

Gains on securities

 

- -

 

 

- -

 

N/M

 

 

 

- -

 

 

 

10

 

N/M

 

Insurance commissions

 

47

 

 

28

 

67.9

%

 

 

312

 

 

 

205

 

52.2

%

Other income (loss)

 

(106)

 

 

5

 

N/M

 

 

 

(493

)

 

 

155

 

N/M

 

Total non-interest income

 

450

 

 

325

 

38.5

%

 

 

973

 

 

 

1,206

 

(19.3)

%

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest Expenses

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

5,072

 

 

4,977

 

1.9

%

 

 

15,754

 

 

 

15,646

 

0.7

%

Occupancy expense of premises

 

461

 

 

484

 

(4.8)

%

 

 

1,435

 

 

 

1,505

 

(4.7)

%

Furniture and equipment expenses

 

323

 

 

373

 

(13.4)

%

 

 

989

 

 

 

1,073

 

(7.8)

%

Other expenses

 

2,102

 

 

1,789

 

17.5

%

 

 

6,247

 

 

 

6,359

 

(1.8)

%

Total non-interest expense

 

7,958

 

 

7,623

 

4.4

%

 

 

24,425

 

 

 

24,583

 

(0.6)

%

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

10,184

 

 

8,543

 

19.2

%

 

 

29,464

 

 

 

22,782

 

29.3

%

 

 

 

 

 

 

 

 

 

 

 

 

Income tax Expense

 

2,139

 

 

1,782

 

20.0

%

 

 

5,863

 

 

 

4,868

 

20.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

$

8,045

 

$

6,761

 

19.0

%

 

$

23,601

 

 

$

17,914

 

31.7

%

 

 

 

 

 

 

 

 

 

 

 

 

Earnings Per Share

 

 

 

 

 

 

 

 

 

 

 

Basic

$

0.57

 

$

0.50

 

14.0

%

 

$

1.69

 

 

$

1.31

 

29.0

%

Diluted

$

0.57

 

$

0.48

 

18.8

%

 

$

1.67

 

 

$

1.29

 

29.5

%

John Marshall Bancorp, Inc.

 

 

 

 

 

 

 

 

Historical Trends - Quarterly Financial Data (Unaudited)

(Dollar amounts in thousands, except per share data)

 

 

 

 

 

 

 

 

 

2022

 

2021

 

 

September 30

 

June 30

 

March 31

 

December 31

 

September 30

 

June 30

 

March 31

 

Profitability for the Quarter:

 

 

 

 

 

 

 

Interest income

$

21,208

 

 

$

19,555

 

 

$

19,745

 

 

$

18,703

 

 

$

18,042

 

 

$

18,627

 

 

$

18,747

 

Interest expense

 

3,516

 

 

 

2,247

 

 

 

1,829

 

 

 

1,734

 

 

 

1,876

 

 

 

2,136

 

 

 

2,465

 

Net interest income

 

17,692

 

 

 

17,308

 

 

 

17,916

 

 

 

16,969

 

 

 

16,166

 

 

 

16,491

 

 

 

16,282

 

Provision for loan losses

 

- -

 

 

 

- -

 

 

 

- -

 

 

 

325

 

 

 

325

 

 

 

90

 

 

 

2,365

 

Non-interest income

 

450

 

 

 

109

 

 

 

414

 

 

 

513

 

 

 

325

 

 

 

417

 

 

 

464

 

Non-interest expense

 

7,958

 

 

 

7,681

 

 

 

8,786

 

 

 

7,679

 

 

 

7,623

 

 

 

9,067

 

 

 

7,893

 

Income before income taxes

 

10,184

 

 

 

9,736

 

 

 

9,544

 

 

 

9,478

 

 

 

8,543

 

 

 

7,751

 

 

 

6,488

 

Income tax expense

 

2,139

 

 

 

1,854

 

 

 

1,870

 

 

 

1,931

 

 

 

1,782

 

 

 

1,672

 

 

 

1,414

 

Net income

$

8,045

 

 

$

7,882

 

 

$

7,674

 

 

$

7,547

 

 

$

6,761

 

 

$

6,079

 

 

$

5,074

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Performance:

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets (annualized)

 

1.38

%

 

 

1.41

%

 

 

1.40

%

 

 

1.41

%

 

 

1.30

%

 

 

1.20

%

 

 

1.05

%

Return on average equity (annualized)

 

15.07

%

 

 

15.28

%

 

 

14.76

%

 

 

14.52

%

 

 

13.35

%

 

 

12.64

%

 

 

10.89

%

Net interest margin

 

3.10

%

 

 

3.16

%

 

 

3.34

%

 

 

3.23

%

 

 

3.15

%

 

 

3.32

%

 

 

3.44

%

Non-interest income as a percentage of average assets (annualized)

 

0.08

%

 

 

0.02

%

 

 

0.08

%

 

 

0.10

%

 

 

0.06

%

 

 

0.08

%

 

 

0.10

%

Non-interest expense to average assets (annualized)

 

1.36

%

 

 

1.38

%

 

 

1.61

%

 

 

1.44

%

 

 

1.46

%

 

 

1.79

%

 

 

1.64

%

Efficiency ratio

 

43.9

%

 

 

44.1

%

 

 

47.9

%

 

 

43.9

%

 

 

46.2

%

 

 

53.6

%

 

 

47.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Per Share Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share - basic

$

0.57

 

 

$

0.56

 

 

$

0.55

 

 

$

0.55

 

 

$

0.50

 

 

$

0.45

 

 

$

0.37

 

Earnings per share - diluted

$

0.57

 

 

$

0.56

 

 

$

0.55

 

 

$

0.54

 

 

$

0.48

 

 

$

0.44

 

 

$

0.37

 

Book value per share

$

14.37

 

 

$

14.80

 

 

$

14.68

 

 

$

15.17

 

 

$

14.82

 

 

$

14.32

 

 

$

13.85

 

Dividends declared per share

$

- -

 

 

$

- -

 

 

$

0.20

 

 

$

- -

 

 

$

- -

 

 

$

- -

 

 

$

- -

 

Weighted average common shares (basic)

 

13,989,414

 

 

 

13,932,256

 

 

 

13,783,034

 

 

 

13,581,586

 

 

 

13,580,538

 

 

 

13,572,779

 

 

 

13,557,779

 

Weighted average common shares (diluted)

 

14,108,286

 

 

 

14,085,160

 

 

 

13,991,692

 

 

 

13,879,595

 

 

 

13,883,104

 

 

 

13,868,147

 

 

 

13,809,751

 

Common shares outstanding at end of period

 

14,070,080

 

 

 

14,026,589

 

 

 

13,950,570

 

 

 

13,745,598

 

 

 

13,644,985

 

 

 

13,639,173

 

 

 

13,634,754

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

$

79

 

 

$

84

 

 

$

77

 

 

$

74

 

 

$

70

 

 

$

60

 

 

$

58

 

Bank owned life insurance

 

255

 

 

 

95

 

 

 

95

 

 

 

102

 

 

 

102

 

 

 

100

 

 

 

107

 

Other service charges and fees

 

175

 

 

 

157

 

 

 

137

 

 

 

138

 

 

 

120

 

 

 

115

 

 

 

104

 

Gains on securities

 

- -

 

 

 

- -

 

 

 

- -

 

 

 

- -

 

 

 

- -

 

 

 

- -

 

 

 

10

 

Insurance commissions

 

47

 

 

 

44

 

 

 

221

 

 

 

79

 

 

 

28

 

 

 

22

 

 

 

155

 

Other income (loss)

 

(106)

 

 

(271)

 

 

(116)

 

 

120

 

 

 

5

 

 

 

120

 

 

 

30

 

Total non-interest income

$

450

 

 

$

109

 

 

$

414

 

 

$

513

 

 

$

325

 

 

$

417

 

 

$

464

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

$

5,072

 

 

$

4,655

 

 

$

6,027

 

 

$

4,765

 

 

$

4,977

 

 

$

5,680

 

 

$

4,989

 

Occupancy expense of premises

 

461

 

 

 

482

 

 

 

493

 

 

 

480

 

 

 

484

 

 

 

514

 

 

 

507

 

Furniture and equipment expenses

 

323

 

 

 

341

 

 

 

325

 

 

 

363

 

 

 

373

 

 

 

378

 

 

 

322

 

Other expenses

 

2,102

 

 

 

2,203

 

 

 

1,941

 

 

 

2,071

 

 

 

1,789

 

 

 

2,495

 

 

 

2,075

 

Total non-interest expenses

$

7,958

 

 

$

7,681

 

 

$

8,786

 

 

$

7,679

 

 

$

7,623

 

 

$

9,067

 

 

$

7,893

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance Sheets at Quarter End:

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans

$

1,725,114

 

 

$

1,692,652

 

 

$

1,631,260

 

 

$

1,666,469

 

 

$

1,602,377

 

 

$

1,567,112

 

 

$

1,605,783

 

Allowance for loan losses

 

(20,032)

 

 

(20,031)

 

 

(20,031)

 

 

(20,032)

 

 

(19,706)

 

 

(19,381)

 

 

(19,381)

Investment securities

 

473,478

 

 

 

473,914

 

 

 

409,692

 

 

 

351,629

 

 

 

348,742

 

 

 

306,030

 

 

 

219,106

 

Interest-earning assets

 

2,258,822

 

 

 

2,274,968

 

 

 

2,217,553

 

 

 

2,121,407

 

 

 

2,062,000

 

 

 

2,032,235

 

 

 

1,979,848

 

Total assets

 

2,305,540

 

 

 

2,316,374

 

 

 

2,249,609

 

 

 

2,149,309

 

 

 

2,095,504

 

 

 

2,065,895

 

 

 

2,009,988

 

Total deposits

 

2,063,341

 

 

 

2,043,741

 

 

 

1,983,099

 

 

 

1,881,553

 

 

 

1,837,548

 

 

 

1,815,032

 

 

 

1,761,390

 

Total interest-bearing liabilities

 

1,552,758

 

 

 

1,581,017

 

 

 

1,530,133

 

 

 

1,435,443

 

 

 

1,416,396

 

 

 

1,379,031

 

 

 

1,388,286

 

Total shareholders' equity

 

202,212

 

 

 

207,530

 

 

 

204,855

 

 

 

208,470

 

 

 

202,222

 

 

 

195,246

 

 

 

188,904

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarterly Average Balance Sheets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Total gross loans

$

1,684,796

 

 

$

1,641,914

 

 

$

1,620,533

 

 

$

1,629,124

 

 

$

1,580,695

 

 

$

1,602,125

 

 

$

1,575,847

 

Allowance for loan losses

 

(20,032)

 

 

(20,031)

 

 

(20,032)

 

 

(19,889)

 

 

(19,525)

 

 

(19,530)

 

 

(17,816)

Investment securities

 

488,860

 

 

 

447,688

 

 

 

376,608

 

 

 

356,007

 

 

 

325,027

 

 

 

256,671

 

 

 

180,180

 

Interest-earning assets

 

2,277,325

 

 

 

2,204,709

 

 

 

2,183,897

 

 

 

2,090,052

 

 

 

2,038,384

 

 

 

1,996,555

 

 

 

1,922,835

 

Total assets

 

2,314,825

 

 

 

2,240,119

 

 

 

2,216,131

 

 

 

2,121,980

 

 

 

2,069,143

 

 

 

2,027,364

 

 

 

1,954,088

 

Total deposits

 

2,057,640

 

 

 

1,980,231

 

 

 

1,946,882

 

 

 

1,857,782

 

 

 

1,812,635

 

 

 

1,820,939

 

 

 

1,709,678

 

Total interest-bearing liabilities

 

1,547,766

 

 

 

1,504,574

 

 

 

1,505,854

 

 

 

1,419,679

 

 

 

1,384,867

 

 

 

1,381,583

 

 

 

1,350,742

 

Total shareholders' equity

 

212,147

 

 

 

206,967

 

 

 

210,900

 

 

 

206,237

 

 

 

200,990

 

 

 

192,918

 

 

 

188,995

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Measures:

 

 

 

 

 

 

 

 

 

 

 

 

 

Average equity to average assets

 

9.2

%

 

 

9.2

%

 

 

9.5

%

 

 

9.7

%

 

 

9.7

%

 

 

9.5

%

 

 

9.7

%

Investment securities to earning assets

 

21.0

%

 

 

20.8

%

 

 

18.5

%

 

 

16.6

%

 

 

16.9

%

 

 

15.1

%

 

 

11.1

%

Loans to earning assets

 

76.4

%

 

 

74.4

%

 

 

73.6

%

 

 

78.6

%

 

 

77.7

%

 

 

77.1

%

 

 

81.1

%

Loans to assets

 

74.8

%

 

 

73.1

%

 

 

72.5

%

 

 

77.5

%

 

 

76.5

%

 

 

75.9

%

 

 

79.9

%

Loans to deposits

 

83.6

%

 

 

82.8

%

 

 

82.3

%

 

 

88.6

%

 

 

87.2

%

 

 

86.3

%

 

 

91.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Ratios (Bank Level):

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity / assets

 

9.7

%

 

 

9.9

%

 

 

10.2

%

 

 

10.8

%

 

 

10.8

%

 

 

10.6

%

 

 

10.5

%

Total risk-based capital ratio

 

15.4

%

 

 

15.1

%

 

 

15.4

%

 

 

15.3

%

 

 

15.2

%

 

 

15.0

%

 

 

14.6

%

Tier 1 risk-based capital ratio

 

14.3

%

 

 

14.0

%

 

 

14.2

%

 

 

14.0

%

 

 

14.0

%

 

 

13.9

%

 

 

13.4

%

Leverage ratio

 

11.0

%

 

 

11.0

%

 

 

10.8

%

 

 

11.0

%

 

 

10.8

%

 

 

10.7

%

 

 

10.8

%

Common equity tier 1 ratio

 

14.3

%

 

 

14.0

%

 

 

14.2

%

 

 

14.0

%

 

 

14.0

%

 

 

12.3

%

 

 

13.4

%

John Marshall Bancorp, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loan, Deposit and Borrowing Detail (Unaudited)

(Dollar amounts in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2022

 

 

2021

 

 

September 30

 

 

June 30

 

 

March 31

 

 

December 31

 

 

September 30

 

 

June 30

 

 

March 31

 

Loans

$ Amount

 

% of Total

 

 

$ Amount

 

% of Total

 

 

$ Amount

 

% of Total

 

 

$ Amount

 

% of Total

 

 

$ Amount

 

% of Total

 

 

$ Amount

 

% of Total

 

 

$ Amount

 

% of Total

 

Commercial business loans

$

44,967

 

 

2.6

%

 

$

47,654

 

 

2.8

%

 

$

52,569

 

 

3.2

%

 

$

53,378

 

 

3.2

%

 

$

53,166

 

 

3.3

%

 

$

55,375

 

 

3.5

%

 

$

60,637

 

 

3.8

%

Commercial PPP loans

 

138

 

 

0.0

%

 

 

224

 

 

0.0

%

 

 

7,781

 

 

0.5

%

 

 

69,567

 

 

4.2

%

 

 

75,496

 

 

4.7

%

 

 

82,190

 

 

5.2

%

 

 

117,796

 

 

7.3

%

Commercial owner-occupied real estate loans

 

362,346

 

 

21.1

%

 

 

378,457

 

 

22.4

%

 

 

339,933

 

 

20.9

%

 

 

345,272

 

 

20.7

%

 

 

326,585

 

 

20.4

%

 

 

320,519

 

 

20.4

%

 

 

307,918

 

 

19.2

%

Total business loans

 

407,451

 

 

23.7

%

 

 

426,335

 

 

25.2

%

 

 

400,283

 

 

24.6

%

 

 

468,217

 

 

28.1

%

 

 

455,247

 

 

28.4

%

 

 

458,084

 

 

29.2

%

 

 

486,351

 

 

30.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investor real estate loans

 

622,415

 

 

36.1

%

 

 

598,501

 

��

35.5

%

 

 

553,093

 

 

34.0

%

 

 

523,038

 

 

31.4

%

 

 

519,384

 

 

32.4

%

 

 

505,605

 

 

32.3

%

 

 

502,940

 

 

31.3

%

Construction & development loans

 

199,324

 

 

11.6

%

 

 

189,644

 

 

11.2

%

 

 

219,160

 

 

13.4

%

 

 

231,090

 

 

13.9

%

 

 

228,993

 

 

14.3

%

 

 

219,175

 

 

14.0

%

 

 

250,208

 

 

15.6

%

Multi-family loans

 

106,460

 

 

6.2

%

 

 

106,236

 

 

6.3

%

 

 

99,100

 

 

6.1

%

 

 

100,132

 

 

6.0

%

 

 

81,226

 

 

5.1

%

 

 

92,203

 

 

5.9

%

 

 

84,689

 

 

5.3

%

Total commercial real estate loans

 

928,199

 

 

53.9

%

 

 

894,381

 

 

53.0

%

 

 

871,353

 

 

53.5

%

 

 

854,260

 

 

51.3

%

 

 

829,603

 

 

51.8

%

 

 

816,983

 

 

52.1

%

 

 

837,837

 

 

52.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage loans

 

385,696

 

 

22.4

%

 

 

368,370

 

 

21.8

%

 

 

356,331

 

 

21.9

%

 

 

342,491

 

 

20.6

%

 

 

316,549

 

 

19.8

%

 

 

291,615

 

 

18.6

%

 

 

281,964

 

 

17.5

%

Consumer loans

 

585

 

 

0.0

%

 

 

651

 

 

0.0

%

 

 

513

 

 

0.0

%

 

 

586

 

 

0.0

%

 

 

631

 

 

0.0

%

 

 

916

 

 

0.1

%

 

 

793

 

 

0.0

%

Total loans

$

1,721,931

 

 

100.0

%

 

$

1,689,737

 

 

100.0

%

 

$

1,628,480

 

 

100.0

%

 

$

1,665,554

 

 

100.0

%

 

$

1,602,030

 

 

100.0

%

 

$

1,567,598

 

 

100.0

%

 

$

1,606,945

 

 

100.0

%

Less: Allowance for loan losses

 

(20,032

)

 

 

 

 

(20,031

)

 

 

 

 

(20,031

)

 

 

 

 

(20,032

)

 

 

 

 

(19,706

)

 

 

 

 

(19,381

)

 

 

 

 

(19,381

)

 

 

Net deferred loan costs (fees)

 

3,183

 

 

 

 

 

2,915

 

 

 

 

 

2,780

 

 

 

 

 

915

 

 

 

 

 

347

 

 

 

 

 

(486

)

 

 

 

 

(1,162

)

 

 

Net loans

$

1,705,082

 

 

 

 

$

1,672,621

 

 

 

 

$

1,611,229

 

 

 

 

$

1,646,437

 

 

 

 

$

1,582,671

 

 

 

 

$

1,547,731

 

 

 

 

$

1,586,402

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2022

 

 

2021

 

 

September 30

 

 

June 30

 

 

March 31

 

 

December 31

 

 

September 30

 

 

June 30

 

 

March 31

 

Deposits

$ Amount

 

% of Total

 

 

$ Amount

 

% of Total

 

 

$ Amount

 

% of Total

 

 

$ Amount

 

% of Total

 

 

$ Amount

 

% of Total

 

 

$ Amount

 

% of Total

 

 

$ Amount

 

% of Total

 

Non-interest bearing demand deposits

$

535,186

 

 

25.9

%

 

$

512,284

 

 

25.1

%

 

$

495,811

 

 

25.0

%

 

$

488,838

 

 

26.0

%

 

$

463,868

 

 

25.2

%

 

$

478,705

 

 

26.4

%

 

$

419,796

 

 

23.8

%

Interest-bearing demand deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOW accounts(1)

 

293,558

 

 

14.2

%

 

 

338,789

 

 

16.6

%

 

 

345,087

 

 

17.4

%

 

 

267,594

 

 

14.2

%

 

 

294,261

 

 

16.0

%

 

 

254,060

 

 

14.0

%

 

 

245,274

 

 

13.9

%

Money market accounts(1)

 

412,035

 

 

20.0

%

 

 

399,877

 

 

19.6

%

 

 

414,987

 

 

20.9

%

 

 

366,306

 

 

19.4

%

 

 

336,651

 

 

18.3

%

 

 

333,818

 

 

18.4

%

 

 

344,807

 

 

19.6

%

Savings accounts

 

102,909

 

 

5.0

%

 

 

112,276

 

 

5.4

%

 

 

114,427

 

 

5.8

%

 

 

101,376

 

 

5.4

%

 

 

94,840

 

 

5.2

%

 

 

79,119

 

 

4.4

%

 

 

72,102

 

 

4.1

%

Certificates of deposit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$250,000 or more

 

280,027

 

 

13.6

%

 

 

255,411

 

 

12.5

%

 

 

241,230

 

 

12.1

%

 

 

250,204

 

 

13.3

%

 

 

232,722

 

 

12.7

%

 

 

243,662

 

 

13.4

%

 

 

265,772

 

 

15.1

%

Less than $250,000

 

88,421

 

 

4.3

%

 

 

87,505

 

 

4.3

%

 

 

91,050

 

 

4.6

%

 

 

103,084

 

 

5.5

%

 

 

104,463

 

 

5.7

%

 

 

112,991

 

 

6.2

%

 

 

119,828

 

 

6.8

%

QwickRate® certificates of deposit

 

20,154

 

 

1.0

%

 

 

20,154

 

 

1.0

%

 

 

23,136

 

 

1.2

%

 

 

25,122

 

 

1.3

%

 

 

28,998

 

 

1.6

%

 

 

31,481

 

 

1.7

%

 

 

38,565

 

 

2.2

%

IntraFi® certificates of deposit

 

46,305

 

 

2.2

%

 

 

32,686

 

 

1.6

%

 

 

39,628

 

 

2.0

%

 

 

61,281

 

 

3.3

%

 

 

66,926

 

 

3.6

%

 

 

60,761

 

 

3.3

%

 

 

38,284

 

 

2.2

%

Brokered deposits

 

284,746

 

 

13.8

%

 

 

284,759

 

 

13.9

%

 

 

217,743

 

 

11.0

%

 

 

217,748

 

 

11.6

%

 

 

214,819

 

 

11.7

%

 

 

220,435

 

 

12.1

%

 

 

216,962

 

 

12.3

%

Total deposits

$

2,063,341

 

 

100.0

%

 

$

2,043,741

 

 

100.0

%

 

$

1,983,099

 

 

100.0

%

 

$

1,881,553

 

 

100.0

%

 

$

1,837,548

 

 

100.0

%

 

$

1,815,032

 

 

100.0

%

 

$

1,761,390

 

 

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Borrowings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Federal Home Loan Bank advances

$

- -

 

 

0.0

%

 

$

- -

 

 

0.0

%

 

$

18,000

 

 

42.0

%

 

$

18,000

 

 

42.1

%

 

$

18,000

 

 

42.1

%

 

$

18,000

 

 

42.2

%

 

$

22,000

 

 

47.1

%

Subordinated debt

 

24,603

 

 

100.0

%

 

 

49,560

 

 

100.0

%

 

 

24,845

 

 

58.0

%

 

 

24,728

 

 

57.9

%

 

 

24,716

 

 

57.9

%

 

 

24,704

 

 

57.8

%

 

 

24,692

 

 

52.9

%

Total borrowings

$

24,603

 

 

100.0

%

 

$

49,560

 

 

100.0

%

 

$

42,845

 

 

100.0

%

 

$

42,728

 

 

100.0

%

 

$

42,716

 

 

100.0

%

 

$

42,704

 

 

100.0

%

 

$

46,692

 

 

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total deposits and borrowings

$

2,087,944

 

 

 

 

$

2,093,301

 

 

 

 

$

2,025,944

 

 

 

 

$

1,924,281

 

 

 

 

$

1,880,264

 

 

 

 

$

1,857,736

 

 

 

 

$

1,808,082

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core customer funding sources (2)

$

1,758,441

 

 

85.2

%

 

$

1,738,828

 

 

85.1

%

 

$

1,742,220

 

 

87.1

%

 

$

1,638,683

 

 

86.3

%

 

$

1,593,731

 

 

85.9

%

 

$

1,563,116

 

 

85.3

%

 

$

1,505,863

 

 

84.4

%

Wholesale funding sources (3)

 

304,900

 

 

14.8

%

 

 

304,913

 

 

14.9

%

 

 

258,879

 

 

12.9

%

 

 

260,870

 

 

13.7

%

 

 

261,817

 

 

14.1

%

 

 

269,916

 

 

14.7

%

 

 

277,527

 

 

15.6

%

Total funding sources

$

2,063,341

 

 

100.0

%

 

$

2,043,741

 

 

100.0

%

 

$

2,001,099

 

 

100.0

%

 

$

1,899,553

 

 

100.0

%

 

$

1,855,548

 

 

100.0

%

 

$

1,833,032

 

 

100.0

%

 

$

1,783,390

 

 

100.0

%

(1)

Includes IntraFi® accounts.

(2)

Includes reciprocal IntraFi Demand®, IntraFi Money Market® and IntraFi CD® deposits, which are maintained by customers.

(3)

Consists of QwickRate® certificates of deposit, brokered deposits, federal funds purchased and Federal Home Loan Bank advances.

John Marshall Bancorp, Inc.

 

 

 

 

 

 

 

Average Balance Sheets, Interest and Rates (unaudited)

(Dollar amounts in thousands)

 

 

 

 

 

 

 

 

Nine months ended September 30, 2022

 

Nine months ended September 30, 2021

 

 

 

 

Interest Income /

 

Average

 

 

 

 

Interest Income /

 

Average

 

 

Average Balance

 

Expense

 

Rate

 

 

Average Balance

 

Expense

 

Rate

 

Assets:

 

 

 

 

 

 

Securities:

 

 

 

 

 

 

Taxable

$

433,128

 

$

5,782

 

1.78

%

 

$

249,451

 

$

3,117

 

1.67

%

Tax-exempt(1)

 

5,002

 

 

114

 

3.05

%

 

 

5,039

 

 

114

 

3.02

%

Total securities

$

438,130

 

$

5,896

 

1.80

%

 

$

254,490

 

$

3,231

 

1.70

%

Loans, net of unearned income(2):

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

1,626,661

 

 

53,192

 

4.37

%

 

 

1,565,883

 

 

51,533

 

4.40

%

Tax-exempt(1)

 

22,656

 

 

694

 

4.10

%

 

 

20,357

 

 

686

 

4.51

%

Total loans, net of unearned income

$

1,649,317

 

$

53,886

 

4.37

%

 

$

1,586,240

 

$

52,219

 

4.40

%

Interest-bearing deposits in other banks

$

134,874

 

$

897

 

0.89

%

 

$

145,618

 

$

134

 

0.12

%

Total interest-earning assets

$

2,222,321

 

$

60,679

 

3.65

%

 

$

1,986,348

 

$

55,584

 

3.74

%

Total non-interest earning assets

 

35,066

 

 

 

 

 

 

30,863

 

 

 

 

Total assets

$

2,257,387

 

 

 

 

 

$

2,017,211

 

 

 

 

Liabilities & Shareholders’ Equity:

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

 

 

 

 

 

 

 

 

 

 

NOW accounts

$

325,647

 

$

829

 

0.34

%

 

$

255,791

 

$

594

 

0.31

%

Money market accounts

 

389,535

 

 

1,516

 

0.52

%

 

 

333,366

 

 

927

 

0.37

%

Savings accounts

 

109,740

 

 

284

 

0.35

%

 

 

76,910

 

 

210

 

0.37

%

Time deposits

 

658,897

 

 

3,461

 

0.70

%

 

 

663,257

 

 

3,537

 

0.71

%

Total interest-bearing deposits

$

1,483,819

 

$

6,090

 

0.55

%

 

$

1,329,324

 

$

5,268

 

0.53

%

Subordinated debt

 

27,476

 

 

1,461

 

7.11

%

 

 

24,696

 

 

1,115

 

6.04

%

Other borrowed funds

 

8,257

 

 

42

 

0.68

%

 

 

18,502

 

 

94

 

0.68

%

Total interest-bearing liabilities

$

1,519,552

 

$

7,593

 

0.67

%

 

$

1,372,522

 

$

6,477

 

0.63

%

Demand deposits

 

511,504

 

 

 

 

 

 

437,905

 

 

 

 

Other liabilities

 

16,321

 

 

 

 

 

 

12,439

 

 

 

 

Total liabilities

$

2,047,377

 

 

 

 

 

$

1,822,866

 

 

 

 

Shareholders’ equity

$

210,010

 

 

 

 

 

$

194,345

 

 

 

 

Total liabilities and shareholders’ equity

$

2,257,387

 

 

 

 

 

$

2,017,211

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax-equivalent net interest income and spread

 

 

$

53,086

 

2.98

%

 

 

 

$

49,107

 

3.11

%

Less: tax-equivalent adjustment

 

 

 

170

 

 

 

 

 

 

168

 

 

Net interest income

 

 

$

52,916

 

 

 

 

 

$

48,939

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax-equivalent interest income/earnings assets

 

 

 

 

3.65

%

 

 

 

 

 

3.74

%

Interest expense/earning assets

 

 

 

 

0.46

%

 

 

 

 

 

0.44

%

Net interest margin(3)

 

 

 

 

3.19

%

 

 

 

 

 

3.30

%

(1)

Tax-equivalent income has been adjusted using the federal statutory tax rate of 21%. The annualized taxable-equivalent adjustments utilized in the above table to compute yields aggregated to $170 thousand and $168 thousand in 2022 and 2021, respectively.

(2)

The Company did not have any loans on non-accrual as of September 30, 2022 or September 30, 2021.

(3)

The net interest margin has been calculated on a tax-equivalent basis.

John Marshall Bancorp, Inc.

 

 

 

 

 

 

 

Average Balance Sheets, Interest and Rates (unaudited)

(Dollar amounts in thousands)

 

 

 

 

 

 

 

 

Three months ended September 30, 2022

 

Three months ended September 30, 2021

 

 

 

Interest Income /

Average

 

 

Interest Income /

Average

 

 

Average Balance

Expense

Rate

 

Average Balance

Expense

Rate

 

Assets:

 

 

 

 

 

 

Securities:

 

 

 

 

 

 

Taxable

$

483,861

 

$

2,385

 

1.96

%

 

$

320,014

 

$

1,224

 

1.52

%

Tax-exempt(1)

 

4,999

 

 

38

 

3.02

%

 

 

5,013

 

 

38

 

3.01

%

Total securities

$

488,860

 

$

2,423

 

1.97

%

 

$

325,027

 

$

1,262

 

1.54

%

Loans, net of unearned income(2):

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

1,655,670

 

 

17,983

 

4.31

%

 

 

1,555,877

 

 

16,533

 

4.22

%

Tax-exempt(1)

 

29,126

 

 

302

 

4.11

%

 

 

24,818

 

 

259

 

4.14

%

Total loans, net of unearned income

$

1,684,796

 

$

18,285

 

4.31

%

 

$

1,580,695

 

$

16,792

 

4.21

%

Interest-bearing deposits in other banks

$

103,669

 

$

571

 

2.19

%

 

$

132,662

 

$

51

 

0.15

%

Total interest-earning assets

$

2,277,325

 

$

21,279

 

3.71

%

 

$

2,038,384

 

$

18,105

 

3.52

%

Total non-interest earning assets

 

37,500

 

 

 

 

 

 

30,759

 

 

 

 

Total assets

$

2,314,825

 

 

 

 

 

$

2,069,143

 

 

 

 

Liabilities & Shareholders’ Equity:

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

 

 

 

 

 

 

 

 

 

 

NOW accounts

$

329,780

 

$

404

 

0.49

%

 

$

277,117

 

$

203

 

0.29

%

Money market accounts

 

377,736

 

 

727

 

0.76

%

 

 

327,144

 

 

296

 

0.36

%

Savings accounts

 

106,647

 

 

107

 

0.40

%

 

 

87,935

 

 

75

 

0.34

%

Time deposits

 

705,206

 

 

1,830

 

1.03

%

 

 

649,963

 

 

899

 

0.55

%

Total interest-bearing deposits

$

1,519,369

 

$

3,068

 

0.80

%

 

$

1,342,159

 

$

1,473

 

0.44

%

Subordinated debt

 

28,397

 

 

448

 

6.26

%

 

 

24,708

 

 

372

 

5.97

%

Other borrowed funds

 

 

 

 

0.00

%

 

 

18,000

 

 

31

 

0.68

%

Total interest-bearing liabilities

$

1,547,766

 

$

3,516

 

0.90

%

 

$

1,384,867

 

$

1,876

 

0.54

%

Demand deposits

 

538,271

 

 

 

 

 

 

470,476

 

 

 

 

Other liabilities

 

16,641

 

 

 

 

 

 

12,810

 

 

 

 

Total liabilities

$

2,102,678

 

 

 

 

 

$

1,868,153

 

 

 

 

Shareholders’ equity

$

212,147

 

 

 

 

 

$

200,990

 

 

 

 

Total liabilities and shareholders’ equity

$

2,314,825

 

 

 

 

 

$

2,069,143

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax-equivalent net interest income and spread

 

 

$

17,763

 

2.81

%

 

 

 

$

16,229

 

2.98

%

Less: tax-equivalent adjustment

 

 

 

71

 

 

 

 

 

 

63

 

 

Net interest income

 

 

$

17,692

 

 

 

 

 

$

16,166

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax-equivalent interest income/earnings assets

 

 

 

 

3.71

%

 

 

 

 

 

3.52

%

Interest expense/earning assets

 

 

 

 

0.61

%

 

 

 

 

 

0.37

%

Net interest margin(3)

 

 

 

 

3.10

%

 

 

 

 

 

3.15

%

(1)

Tax-equivalent income has been adjusted using the federal statutory tax rate of 21%. The annualized taxable-equivalent adjustments utilized in the above table to compute yields aggregated to $71 thousand and $63 thousand in 2022 and 2021, respectively.

(2)

The Company did not have any loans on non-accrual as of September 30, 2022 or September 30, 2021.

(3)

The net interest margin has been calculated on a tax-equivalent basis.

 

Contacts

Christopher W. Bergstrom (703) 584-0840

Kent D. Carstater (703) 289-5922

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