John Marshall Bancorp (Nasdaq: JMSB) reported net income of $4.2 million ($0.30 per diluted share) for Q3 2024, up from $3.9 million in Q2 2024. Key highlights include: 11.1% increase in diluted earnings per share, 11 basis points increase in net interest margin, and $40.0 million growth in core customer funding. The company maintained pristine asset quality with no non-performing loans for the twentieth consecutive quarter. Total assets were $2.27 billion with total loans of $1.84 billion. Book value per share increased 9.4% year-over-year to $17.07.
John Marshall Bancorp (Nasdaq: JMSB) ha riportato un reddito netto di 4,2 milioni di dollari (0,30 dollari per azione diluita) per il terzo trimestre del 2024, in aumento rispetto ai 3,9 milioni di dollari del secondo trimestre del 2024. Tra i punti salienti: un aumento dell’11,1% degli utili per azione diluiti, un aumento di 11 punti base del margine d’interesse netto e una crescita di 40,0 milioni di dollari nel finanziamento dei clienti core. L’azienda ha mantenuto una qualità patrimoniale impeccabile, senza prestiti non performanti per il ventesimo trimestre consecutivo. Gli attivi totali ammontavano a 2,27 miliardi di dollari con prestiti totali di 1,84 miliardi di dollari. Il valore contabile per azione è aumentato del 9,4% su base annua, raggiungendo 17,07 dollari.
John Marshall Bancorp (Nasdaq: JMSB) reportó un ingreso neto de 4.2 millones de dólares (0.30 dólares por acción diluida) para el tercer trimestre de 2024, un incremento respecto a los 3.9 millones de dólares del segundo trimestre de 2024. Los aspectos destacados incluyen: un aumento del 11.1% en las ganancias por acción diluida, un aumento de 11 puntos base en el margen de interés neto, y un crecimiento de 40.0 millones de dólares en el financiamiento de clientes fundamentales. La compañía mantuvo una calidad de activos impecable sin préstamos en mora durante el vigésimo trimestre consecutivo. Los activos totales fueron de 2.27 mil millones de dólares con préstamos totales de 1.84 mil millones de dólares. El valor contable por acción aumentó un 9.4% interanual a 17.07 dólares.
존 마샬 밴코프(나스닥: JMSB)는 2024년 3분기에 420만 달러의 순이익(희석 주당 0.30달러)를 보고했으며, 이는 2024년 2분기 390만 달러에서 증가한 수치입니다. 주요 하이라이트로는 희석 주당 수익의 11.1% 증가, 순이자 마진의 11bp 증가, 그리고 핵심 고객 자금의 4000만 달러 성장이 있습니다. 이 회사는 20분기 연속으로 비실행 대출이 없는 완벽한 자산 품질을 유지하였습니다. 총 자산은 22.7억 달러이고 총 대출은 18.4억 달러입니다. 주당 장부 가치는 전년 대비 9.4% 증가하여 17.07달러에 달했습니다.
John Marshall Bancorp (Nasdaq: JMSB) a annoncé un revenu net de 4,2 millions de dollars (0,30 dollars par action diluée) pour le troisième trimestre de 2024, en hausse par rapport à 3,9 millions de dollars au deuxième trimestre de 2024. Parmi les points forts : augmentation de 11,1% du résultat par action diluée, augmentation de 11 points de base de la marge d’intérêt nette et croissance de 40,0 millions de dollars dans le financement des clients de base. L’entreprise a maintenu une qualité d’actifs irréprochable, sans prêts non performants pour le vingtième trimestre consécutif. Les actifs totaux s’élevaient à 2,27 milliards de dollars, avec des prêts totaux de 1,84 milliard de dollars. La valeur comptable par action a augmenté de 9,4% d’une année sur l’autre, atteignant 17,07 dollars.
John Marshall Bancorp (Nasdaq: JMSB) berichtete von einem Nettoergebnis von 4,2 Millionen US-Dollar (0,30 US-Dollar pro verwässerter Aktie) für das 3. Quartal 2024, was einem Anstieg von 3,9 Millionen US-Dollar im 2. Quartal 2024 entspricht. Zu den wichtigsten Highlights gehören: ein 11,1%-Anstieg des verwässerten Ergebnisses pro Aktie, ein Anstieg um 11 Basispunkte der Nettozinsmarge und ein Wachstum von 40,0 Millionen US-Dollar bei der Kernfinanzierung der Kunden. Das Unternehmen hielt die Asset-Qualität auf einem hohen Niveau, ohne dass in den zwanzig aufeinanderfolgenden Quartalen notleidende Kredite auftraten. Die Gesamtaktiva beliefen sich auf 2,27 Milliarden US-Dollar, mit Gesamtdarlehen von 1,84 Milliarden US-Dollar. Der Buchwert pro Aktie stieg im Jahresvergleich um 9,4% auf 17,07 US-Dollar.
Positive
Net income increased to $4.2 million in Q3 2024 from $3.9 million in Q2 2024
11.1% increase in diluted earnings per share quarter-over-quarter
Core deposits grew by $40.0 million (6.8% annualized)
Loan pipeline expanded with $128.1 million in new commitments, up 44.9% from Q2
Book value per share increased 9.4% year-over-year to $17.07
Zero non-performing loans and charge-offs for twenty consecutive quarters
Negative
Total assets decreased $23.8 million (1.0%) year-over-year
Cost of interest-bearing liabilities increased to 3.86% from 3.41% year-over-year
Insights
John Marshall Bancorp reported strong Q3 2024 results with several positive indicators. Net income increased to $4.2 million ($0.30 per share), up 11.1% from Q2 2024. Key highlights include:
Net interest margin expanded 11 basis points QoQ and 23 basis points YoYCore deposits grew $40.0 million (6.8% annualized) since Q2Non-interest bearing deposits increased $35.3 million (32.1% annualized)Loan pipeline strengthened with $128.1 million in new commitments, up 44.9% from Q2Asset quality remains excellent with no non-performing loans or charge-offs
The bank’s strategic moves to improve funding mix and reduce wholesale funding while maintaining strong capital ratios position it well for continued growth. The potential for further margin expansion as rates decrease makes this an encouraging quarter for investors.
10/23/2024 – 09:15 AM
Net Interest Margin Expands and Asset Quality Remains Pristine
RESTON, Va.–(BUSINESS WIRE)–
John Marshall Bancorp, Inc. (Nasdaq: JMSB) (the “Company”), parent company of John Marshall Bank (the “Bank”), reported net income of $4.2 million ($0.30 per diluted common share) for the quarter ended September 30, 2024, compared to net income of $3.9 million ($0.27 per diluted common share) for the quarter ended June 30, 2024 and a net loss of $10.1 million ($(0.72) per diluted common share) for the quarter ended September 30, 2023. The loss for the quarter ended September 30, 2023 was primarily attributable to the previously disclosed restructuring of the securities portfolio and surrender of bank owned life insurance (the “Restructuring”).
Selected Highlights
Earnings Growth – The Company’s third quarter 2024 diluted earnings per share represents an 11.1% increase over the second quarter 2024. Pre-tax, pre-provision earnings (Non-GAAP) of $5.7 million for the quarter ended September 30, 2024 represent a 21.5% increase over the $4.7 million for the three months ended June 30, 2024.
Margin Expansion – For the three months ended September 30, 2024, the Company reported an 11 basis points increase in net interest margin when compared to the three months ended June 30, 2024 and 23 basis points increase in net interest margin when compared to the three months ended September 30, 2023. In light of the liability sensitivity of the Company’s balance sheet, management anticipates continued margin expansion should the Federal Reserve continue to decrease the federal funds target rate.
Core Deposit Growth – Since June 30, 2024, the Company grew core customer funding sources $40.0 million or 6.8% annualized. Non-interest bearing demand deposits constituted the majority with growth of $35.3 million or 32.1% annualized from June 30, 2024.
Improved Funding Mix – On a year-to-date basis, the Company has grown core customer funding sources $79.4 million or 6.7% annualized. For the nine months ended September 30, 2024, the Company has reduced wholesale funding by $57.9 million or 19.6% annualized.
Loan Pipeline Growth – The Company’s loan pipeline remained strong with $128.1 million in new commitments recorded during the three months ended September 30, 2024, a 44.9% improvement on the $88.4 million of new commitments recorded during the three months ended June 30, 2024. New commitments represent loans closed, but not necessarily fully funded as of the end of the respective reporting period.
Pristine Asset Quality & Robust Capitalization – For the twentieth consecutive quarter, the Company had no non-performing loans, no other real estate owned and no loans 30 days or more past due. There were no charge-offs during the quarter. The Company continues to adhere to strict underwriting standards and proactively manages the portfolio. Each of the Bank’s regulatory capital ratios remained well in excess of the well-capitalized thresholds as of September 30, 2024.
Growing Book Value per Share – Book value per share has increased from $15.61 as of September 30, 2023 to $17.07 as of September 30, 2024, for an increase of 9.4%. When factoring in the $0.25 cash dividend per share paid in July 2024, the book value per share return has been 11.0% over the last twelve months.
Chris Bergstrom, President and Chief Executive Officer, commented, “The third quarter of 2024 reflects continued improvements in margin and net interest income. We expect to see opportunities to reprice loans at higher yields, reposition our funding base and lower funding costs. With the Federal Reserve taking an initial step in September to begin to lower the target range for the federal funds rate, we believe our margin improvement could accelerate. We have seen continued momentum with loan commitments and our capital, asset quality and liquidity positions are well-positioned to drive growth.”
Balance Sheet, Liquidity and Credit Quality
Total assets were $2.27 billion at September 30, 2024, $2.24 billion at December 31, 2023, and $2.30 billion at September 30, 2023. Total assets have decreased $23.8 million or 1.0% since September 30, 2023 and increased $31.8 million or 1.4% since December 31, 2023. As discussed below, the Company has decreased wholesale funds $18.2 million since September 30, 2023 and $57.9 million since December 31, 2023. Had the Company not redeemed these wholesale funds, total assets would have decreased $5.6 million or 0.2% since September 30, 2023 and increased $89.7 million or 4.0% since December 31, 2023.
Total loans, net of unearned income, increased $22.5 million or 1.2% to $1.84 billion at September 30, 2024, compared to $1.82 billion at September 30, 2023. The increase in loans was primarily attributable to growth in the investor real estate loan and residential mortgage portfolios, partially offset by a decrease in the commercial owner-occupied real estate and construction & development loan portfolio.
Total loans, net of unearned income, increased $15.4 million during the quarter ended September 30, 2024 from $1.83 billion at June 30, 2024. The Bank continued to gain momentum in its loan pipeline with $128.1 million in new loan commitments recorded during the quarter ended September 30, 2024 compared to $88.4 million in new loan commitments recorded during the quarter ended June 30, 2024.
The carrying value of the Company’s fixed income securities portfolio was $237.5 million at September 30, 2024, $265.5 million at December 31, 2023 and $265.4 million at September 30, 2023. The decrease in carrying value of the Company’s fixed income securities portfolio since September 30, 2023 was attributable to runoff of the portfolio. As of September 30, 2024, 95.7% of our bond portfolio carried the implied guarantee of the United States government or one of its agencies. At September 30, 2024, 61% of the fixed income portfolio was invested in amortizing bonds, which provides the Company with a source of steady cash flow. At September 30, 2024, the fixed income portfolio had an estimated weighted average life of 4.0 years. The available-for-sale portfolio comprised approximately 63% of the fixed income securities portfolio and had a weighted average life of 2.8 years at September 30, 2024. The held-to-maturity portfolio comprised approximately 37% of the fixed income securities portfolio and had a weighted average life of 6.0 years at September 30, 2024. The Company did not purchase or sell any fixed income securities during the three month period ended September 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 $775.5 million as of September 30, 2024 compared to $639.0 million as of December 31, 2023 and represented 34.1% 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 September 30, 2024.
Total deposits were $1.94 billion at September 30, 2024, $1.91 billion at December 31, 2023 and $1.98 billion at September 30, 2023. During the quarter ended September 30, 2024, deposits increased $23.3 million or 1.2% primarily due to a 32.1% annualized increase in non-interest bearing demand deposits of $35.3 million. The Bank continued to manage reductions in costlier brokered deposits with a $17.5 million or 23.3% annualized decrease during the quarter. Absent the decrease in brokered deposits during the quarter, total deposits would have increased $64.1 million or 3.4%. As further detailed in the tables included in this release, core funding sources have increased $79.4 million and wholesale funding sources have decreased $57.9 million since December 31, 2023. As of September 30, 2024, the Company had $714.2 million deposits that were not insured or not collateralized compared to $634.1 million at December 31, 2023.
On September 3, 2024, the Company paid off its $77.0 million Bank Term Funding Program (“BTFP”) advance and concurrently secured three Federal Home Loan Bank (“FHLB”) advances totaling $56.0 million. The FHLB advances have a weighted average fixed interest rate of 4.01% compared to the BTFP advance fixed rate of 4.76%. Total borrowings as of September 30, 2024 consisted of subordinated debt totaling $24.7 million and the FHLB advances totaling $56.0 million.
Shareholders’ equity increased $22.5 million or 10.2% to $243.1 million at September 30, 2024 compared to $220.5 million at September 30, 2023. Book value per share was $17.07 as of September 30, 2024 compared to $15.61 as of September 30, 2023, an increase of 9.4%. 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 decreases in unrealized losses on our available-for-sale investment portfolio due to market value increases.
The Bank’s capital ratios at September 30, 2024 remained well above regulatory thresholds for well-capitalized banks. As of September 30, 2024, the Bank’s total risk-based capital ratio was 16.3%, compared to 15.7% at September 30, 2023 and 15.7% at December 31, 2023. As outlined below, the Bank would continue to remain well above regulatory thresholds for well-capitalized banks at September 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
September 30, 2024
December 31, 2023
September 30, 2023
Total risk-based capital ratio
10.0
%
16.3
%
15.7
%
15.7
%
Tier 1 risk-based capital ratio
8.0
%
15.3
%
14.7
%
14.6
%
Common equity tier 1 ratio
6.5
%
15.3
%
14.7
%
14.6
%
Leverage ratio
5.0
%
11.9
%
11.6
%
11.3
%
Adjusted Bank Regulatory Capital Ratios (Hypothetical Scenario of Selling All Bonds at Fair Market Value – Non-GAAP)
Well-
Capitalized
Threshold
September 30, 2024
December 31, 2023
September 30, 2023
Adjusted total risk-based capital ratio
10.0
%
15.6
%
14.7
%
14.1
%
Adjusted tier 1 risk-based capital ratio
8.0
%
14.5
%
13.5
%
12.9
%
Adjusted common equity tier 1 ratio
6.5
%
14.5
%
13.5
%
12.9
%
Adjusted leverage ratio
5.0
%
11.2
%
10.6
%
11.3
%
The Company recorded no charge-offs during the nine months ended September 30, 2024. As of September 30, 2024, the Company had no loans greater than 30 days past due, no non-accrual loans, and no other real estate owned assets.
At September 30, 2024, the allowance for loan credit losses was $18.4 million or 1.00% of outstanding loans, net of unearned income, compared to $19.5 million or 1.05% of outstanding loans, net of unearned income, at December 31, 2023. The decrease in the allowance as a percentage of outstanding loans, net of unearned income, resulted from changes in the Company’s loss driver analysis and assumptions, changes in the composition of the loan portfolio, improved economic forecasts used in the quantitative portion of the model and considerations of qualitative factors combined with the continued strong credit performance of our loan portfolio segments.
At September 30, 2024, the allowance for credit losses on unfunded loan commitments was $1.0 million compared to $0.6 million at December 31, 2023. The increase in the allowance for credit losses on unfunded loan commitments was primarily the result of increases in unfunded loan commitments.
The Company did not have an allowance for credit losses on held-to-maturity securities as of September 30, 2024 or December 31, 2023. As of September 30, 2024, 93.5% 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 September 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
56.4
%
3.0
x
54
$
77,492
50.1
%
2.5
x
46
$
113,421
Office
58.9
%
3.5
x
134
82,502
49.5
%
1.9
x
57
114,462
Retail
60.5
%
3.3
x
41
70,048
50.4
%
1.9
x
141
417,652
Church
28.5
%
2.7
x
18
32,249
– –
– –
– –
– –
Hotel/Motel
– –
– –
– –
– –
61.6
%
1.9
x
8
49,301
Other(4)
47.0
%
3.5
x
40
81,615
41.8
%
3.0
x
9
31,935
Total
287
$
343,906
261
$
726,771
____________________
(1)
Loan-to-value is determined at origination date and is divided by principal balance as of September 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 $4.2 million for the third quarter of 2024, an increase of $14.3 million when compared to the net loss of $10.1 million for the third quarter of 2023. The previously disclosed Restructuring, whereby the Company sold certain lower-yielding available-for-sale investment securities with a total par value of $161.2 million and agreed to surrender $21.4 million of bank owned life insurance (“BOLI”) contracts, resulted in a non-recurring, after-tax loss of $14.6 million that was recorded during the third quarter of 2023. Core net income (Non-GAAP) defined as reported net income excluding the non-recurring after-tax loss and taxes paid in conjunction with the Restructuring, was $4.5 million for the third quarter of 2023.
Net interest income for the third quarter of 2024 increased $1.2 million or 9.8% compared to the third quarter of 2023, driven primarily by the increase in yield on interest-earning assets, the increase in non-interest bearing deposit balances, and the decrease in interest-bearing deposit balances. The annualized net interest margin and tax-equivalent net interest margin (Non-GAAP) for the three months ended September 30, 2024 was 2.30%, as compared to 2.07% and 2.08%, respectively, for the same period in the prior year. The increase in net interest margin was primarily due to the increase in yields on the Company’s interest-earning assets outpacing the increase in cost of interest-bearing liabilities.
The yield on interest earning assets was 4.97% for the third quarter of 2024 compared to 4.54% for the same period in 2023. The increase in yield on interest earning assets was primarily due to higher yields on the Company’s loan portfolio as a result of repricing of assets subsequent to the third quarter of 2023. The cost of interest-bearing liabilities was 3.86% for the third quarter of 2024 compared to 3.41% for the same quarter in the prior year. The increase in the cost of interest-bearing liabilities was primarily due to the increase in the cost of interest-bearing deposits. During 2023, the Federal Reserve increased the federal funds rate 100 basis points, which generally resulted in an increase in rates offered on money market, NOW and savings deposit accounts and an increased cost when repricing time deposits since the third quarter of 2023. The Company continues to improve its funding mix. Average non-interest bearing demand deposits represented 22.6% of average funding for the three months ended September 30, 2024 versus 20.5% for the three months ended September 30, 2023. Average time deposits represented 36.2% of average funding for the three months ended September 30, 2024 versus 40.6% for the three months ended September 30, 2023.
The Company recorded a $400 thousand provision for credit losses for the third quarter of 2024 compared to a release of provision for credit losses of $829 thousand for the third quarter of 2023. The provision for credit losses during the third quarter of 2024 was primarily a result of increased unfunded loan commitments and changes in modeled probability of default and prepayment, curtailment and funding rates used in determining the allowance for credit losses.
Non-interest income was $617 thousand for the third quarter of 2024 compared to a loss of $16.8 million for the third quarter of 2023. Core non-interest income (Non-GAAP) defined as reported non-interest income excluding the $17.1 million loss stemming from the bond sale portion of the Restructuring was $299 thousand for the third quarter 2023. The increase in non-interest income of $318 thousand was primarily attributable to an increase of $199 thousand due to favorable mark-to-market adjustments on investments related to the Company’s nonqualified deferred compensation plan (“NQDC”) and a $133 thousand increase in gains recorded on the sale of the guaranteed portion of SBA 7(a) loans due to increased sale activity. These increases were partially offset by a decrease in BOLI income of $23 thousand due to the surrender of all BOLI policies in July 2023.
Non-interest expense increased $371 thousand or 4.8% during the third quarter of 2024 compared to the third quarter of 2023. The increase was primarily due to a non-recurring $322 thousand reversal of a litigation reserve during the third quarter of 2023. Excluding the effects of the $322 thousand reversal in 2023, non-interest expense increased $49 thousand or 0.6% during the third quarter of 2024 when compared to adjusted third quarter of 2023. The increase was primarily due to increases in professional fees and data processing expense, partially offset by lower salaries and employee benefit expense. The increase in professional fees was due to increased contract costs and services. The increase in data processing fees was primarily due to contractual increases and volume based activity. The decrease in salaries and employee benefits was due to lower incentive accruals and higher direct loan origination costs when compared to the same period of the prior year, partially offset by higher deferred compensation expense as result of mark-to-market fluctuations on the Company’s NQDC. The Company continues to analyze cost savings opportunities on existing leases and material contracts.
For the three months ended September 30, 2024, annualized non-interest expense to average assets was 1.39% compared to 1.30% for the three months ended September 30, 2023. The increase was primarily due to higher reported non-interest expense when comparing the two periods, as discussed above.
For the three months ended September 30, 2024, the annualized efficiency ratio was 58.3% compared to the annualized core efficiency ratio, which excludes the impact of the Restructuring (Non-GAAP), of 62.4% for the three months ended September 30, 2023. The decrease was primarily due to an increase in interest income.
Year-to-Date Results
The Company reported net income of $12.3 million for the nine months ended September 30, 2024, an increase of $11.7 million when compared to net income of $656 thousand for the nine-months ended September 30, 2023. This increase was primarily attributable to the Restructuring, as previously discussed, that resulted in an after-tax loss of $14.6 million. Core net income (Non-GAAP) was $15.3 million for the nine months ended September 30, 2023.
Net interest income for the nine months ended September 30, 2024 decreased $1.5 million or 3.8% 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 4.88% for the nine months ended September 30, 2024 compared to 4.32% for the same period in 2023. The increase in yield on interest earning assets was primarily due to higher yields on the Company’s loans and deposits in banks as a result of increases in interest rates and repricing of assets subsequent to the third quarter of 2023. The cost of interest-bearing liabilities was 3.83% for the nine months ended September 30, 2024 compared to 2.89% for the nine months ended September 30, 2023. The increase in the cost of interest-bearing liabilities was primarily due to a 94 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 third quarter of 2023. The annualized net interest margin and tax-equivalent net interest margin (Non-GAAP) for the nine-months ended September 30, 2024 were both 2.20%, as compared to 2.21% and 2.24%, 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 $0.7 million release of provision for credit losses for the nine months ended September 30, 2024 compared to $2.5 million release of provision for credit losses for the nine months ended September 30, 2023. The release of provision for credit losses during the nine months ended September 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 considerations of qualitative factors combined with the continued strong credit performance of our loan portfolio segments.
Non-interest income was $2.0 million for the nine months ended September 30, 2024 compared to a loss of $15.6 million for the nine months ended September 30, 2023. As previously disclosed and discussed herein, the Company recorded a loss on the sale of certain available-for-sale bonds of $17.1 million during the third quarter 2023. Core non-interest income (Non-GAAP) defined as reported non-interest income excluding the $17.1 million loss stemming from the bond sale portion of the Restructuring was $1.6 million for the nine months ended September 30, 2023. The 28.3% increase in non-interest income of $440 thousand was primarily attributable to a $459 thousand increase in gains recorded on the sale of the guaranteed portion of SBA 7(a) loans due to increased sale activity.
Non-interest expense increased $602 thousand or 2.6% during the nine months ended September 30, 2024 compared to the same period in 2023. The increase was primarily due to the non-recurring $322 thousand reversal of a litigation reserve during the third quarter of 2023 and previously disclosed non-recurring expenses totaling $138 thousand incurred during the first quarter of 2024. The first quarter 2024 non-recurring expenses were incurred in connection with a strategic opportunity that was explored and ultimately did not materialize. Excluding the effects of the $322 thousand reversal in 2023 and non-recurring expenses totaling $138 thousand incurred during 2024, non-interest expense increased $142 thousand or 0.6% during the adjusted nine months ended September 30, 2024 when compared to adjusted nine months ended September 30, 2023. The increase was primarily due to increases in professional fees and data processing expense, partially offset by lower salaries and employee benefit expense. The increase in professional fees was due to increased contract costs and services. The increase in data processing fees was primarily due to contractual increases and volume based activity. The decrease in salaries and employee benefits was due to lower incentive accruals and higher direct loan origination costs when compared to the same period of the prior year, partially offset by higher deferred compensation expense as result of mark-to-market fluctuations on the Company’s NQDC.
For the nine months ended September 30, 2024, annualized non-interest expense to average assets was 1.41% compared to 1.33% for the nine months ended September 30, 2023. The increase was primarily due to higher reported non-interest expense when comparing the two periods.
For the nine months ended September 30, 2024, the annualized efficiency ratio was 61.2% compared to the annualized core efficiency ratio (Non-GAAP) of 58.1% for the nine months ended September 30, 2023. The decrease in efficiency ratio was primarily due to a decrease in net interest income.
Explanation of Non-GAAP Financial Measures
This release contains financial information determined by methods other than in accordance with GAAP. Management believes that the supplemental Non-GAAP information provides a better comparison of period-to-period operating performance and the impact of non-recurring expenses and unrealized losses in the Company’s bond portfolio on the Bank’s regulatory capital ratios. Additionally, the Company believes this information is utilized by regulators and market analysts to evaluate a company’s financial condition and therefore, such information is useful to investors. Non-GAAP measures used in this release consist of the following:
Tax-equivalent net interest margin reflects adjustments for differences in tax treatment of interest income sources;
Adjusted Bank regulatory capital ratios in the hypothetical scenario where the entire bond portfolio was sold at fair market value and any losses realized;
Pre-tax, pre-provision earnings excludes income tax expense and the provision for (recovery of) credit losses; and
Core non-interest income, income before taxes, income tax expense, net income, earnings per share (basic and diluted), return on average assets (annualized), return on average equity (annualized), non-interest income as a percentage of average assets (annualized) and efficiency ratio excluding the impact of losses recognized in July 2023 on the sale of available-for-sale securities and taxes paid on the early surrender of BOLI policies.
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. Metropolitan area. The Bank offers a comprehensive line of sophisticated banking products and services that rival those of the largest banks along with experienced staff to help achieve customers’ financial goals. Dedicated relationship managers serve as direct points-of-contact, providing subject matter expertise in a variety of niche industries including charter and private schools, government contractors, health services, nonprofits and associations, professional services, property management companies and title companies. Learn more at www.johnmarshallbank.com.
Cautionary Note Regarding Forward-Looking Statements
In addition to historical information, this press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are based on certain assumptions and describe future plans, strategies and expectations of the Company. These forward-looking statements are generally identified by use of the words “believe,” “expect,” “intend,” “anticipate,” “estimate,” “project,” “will,” “should,” “may,” “view,” “opportunity,” “potential,” or similar expressions or expressions of confidence. Our ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on the operations of the Company and the Bank include, but are not limited to, the following: the concentration of our business in the Washington, D.C. metropolitan area and the effect of changes in the economic, political and environmental conditions on this market; adequacy of our allowance for loan credit losses; allowance for unfunded commitments credit losses, and allowance for credit losses associated with our held-to-maturity and available-for-sale securities portfolios; deterioration of our asset quality; future performance of our loan portfolio with respect to recently originated loans; the level of prepayments on loans and mortgage-backed securities; liquidity, interest rate and operational risks associated with our business; changes in our financial condition or results of operations that reduce capital; our ability to maintain existing deposit relationships or attract new deposit relationships; changes in consumer spending, borrowing and savings habits; inflation and changes in interest rates that may reduce our margins or reduce the fair value of financial instruments; changes in the monetary and fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System; additional risks related to new lines of business, products, product enhancements or services; increased competition with other financial institutions and fintech companies; adverse changes in the securities markets; changes in the financial condition or future prospects of issuers of securities that we own; our ability to maintain an effective risk management framework; changes in laws or government regulations or policies affecting financial institutions, including changes in regulatory structure and in regulatory fees and capital requirements; compliance with legislative or regulatory requirements; results of examination of us by our regulators, including the possibility that our regulators may require us to increase our allowance for credit losses or to write-down assets or take similar actions; potential claims, damages, and fines related to litigation or government actions; the effectiveness of our internal controls over financial reporting and our ability to remediate any future material weakness in our internal controls over financial reporting; geopolitical conditions, including acts or threats of terrorism and/or military conflicts, or actions taken by the U.S. or other governments in response to acts or threats of terrorism and/or military conflicts, negatively impacting business and economic conditions in the U.S. and abroad; the effects of weather-related or natural disasters, which may negatively affect our operations and/or our loan portfolio and increase our cost of conducting business; public health events (such as the COVID-19 pandemic) and governmental and societal responses thereto; technological risks and developments, and cyber threats, attacks, or events; the additional requirements of being a public company; changes in accounting policies and practices; our ability to successfully capitalize on growth opportunities; our ability to retain key employees; deteriorating economic conditions, either nationally or in our market area, including higher unemployment and lower real estate values; implications of our status as a smaller reporting company and as an emerging growth company; and other factors discussed in the Company’s reports (such as our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K) filed with the Securities and Exchange Commission. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. The Company does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions which may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events. Annualized, pro forma, projected and estimated numbers are used for illustrative purpose only, are not forecasts and may not reflect actual results.
John Marshall Bancorp, Inc.
Financial Highlights (Unaudited)
(Dollar amounts in thousands, except per share data)
At or For the Three Months Ended
At or For the Nine Months Ended
September 30,
September 30,
2024
2023
2024
2023
Selected Balance Sheet Data
Cash and cash equivalents
$
177,227
$
192,656
$
177,227
$
192,656
Total investment securities
247,840
272,881
247,840
272,881
Loans, net of unearned income
1,842,598
1,820,132
1,842,598
1,820,132
Allowance for loan credit losses
18,481
20,036
18,481
20,036
Total assets
2,274,363
2,298,202
2,274,363
2,298,202
Non-interest bearing demand deposits
472,422
437,880
472,422
437,880
Interest bearing deposits
1,463,728
1,543,743
1,463,728
1,543,743
Total deposits
1,936,150
1,981,623
1,936,150
1,981,623
Federal Home Loan Bank advances
56,000
– –
56,000
–
Federal Reserve Bank borrowings
– –
54,000
– –
54,000
Shareholders’ equity
243,118
220,567
243,118
220,567
Summary Results of Operations
Interest income
$
28,428
$
26,263
$
82,138
$
74,171
Interest expense
15,272
14,284
45,158
35,715
Net interest income
13,156
11,979
36,980
38,456
Provision for (recovery of) credit losses
400
(829
)
(667
)
(2,471
)
Net interest income after provision for (recovery of) credit losses
12,756
12,808
37,647
40,927
Non-interest income (loss)
617
(16,815
)
1,990
(15,564
)
Core non-interest income(1)
617
299
1,990
1,550
Non-interest expense
8,031
7,660
23,863
23,261
Income (loss) before income taxes
5,342
(11,667
)
15,774
2,102
Core income before income taxes(1)
5,342
5,447
15,774
19,216
Net income (loss)
4,235
(10,137
)
12,344
656
Core net income(1)
4,235
4,484
12,344
15,277
Per Share Data and Shares Outstanding
Earnings (loss) per share – basic
$
0.30
$
(0.72
)
$
0.87
$
0.05
Core earnings per share – basic(1)
$
0.30
$
0.32
$
0.87
$
1.08
Earnings (loss) per share – diluted
$
0.30
$
(0.72
)
$
0.87
$
0.05
Core earnings per share – diluted(1)
$
0.30
$
0.32
$
0.87
$
1.08
Book value per share
$
17.07
$
15.61
$
17.07
$
15.61
Weighted average common shares (basic)
14,187,691
14,080,026
14,164,060
14,126,522
Weighted average common shares (diluted)
14,214,586
14,080,026
14,198,332
14,199,179
Common shares outstanding at end of period
14,238,677
14,126,084
14,238,677
14,126,084
Performance Ratios
Return on average assets (annualized)
0.73
%
(1.73
)%
0.73
%
0.04
%
Core return on average assets (annualized)(1)
0.73
%
0.76
%
0.73
%
0.87
%
Return on average equity (annualized)
7.00
%
(18.24
)%
6.97
%
0.40
%
Core return on average equity (annualized)(1)
7.00
%
8.07
%
6.97
%
9.25
%
Net interest margin
2.30
%
2.07
%
2.20
%
2.22
%
Tax-equivalent net interest margin (Non-GAAP)
2.30
%
2.08
%
2.20
%
2.25
%
Non-interest income (loss) as a percentage of average assets (annualized)
0.11
%
(2.86
)%
0.12
%
(0.89
)%
Core non-interest income as a percentage of average assets (annualized)(1)
0.11
%
0.05
%
0.12
%
0.09
%
Non-interest expense to average assets (annualized)
1.39
%
1.30
%
1.41
%
1.33
%
Efficiency ratio
58.3
%
(158.4
)%
61.2
%
101.6
%
Core efficiency ratio(1)
58.3
%
62.4
%
61.2
%
58.1
%
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
1.00
%
1.10
%
1.00
%
1.10
%
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 (2)
– –
– –
– –
– –
Capital Ratios (Bank Level)
Equity / assets
11.6
%
10.6
%
11.6
%
10.6
%
Total risk-based capital ratio
16.3
%
15.7
%
16.3
%
15.7
%
Tier 1 risk-based capital ratio
15.3
%
14.6
%
15.3
%
14.6
%
Common equity tier 1 ratio
15.3
%
14.6
%
15.3
%
14.6
%
Leverage ratio
11.9
%
11.3
%
11.9
%
11.3
%
Other Information
Number of full time equivalent employees
134
138
134
138
# Full service branch offices
8
8
8
8
__________________
(1)
Non-GAAP financial measure. Refer to “Reconciliation of Certain Non-GAAP Financial Measures” for further details.
(2)
Non-performing assets consist of non-accrual loans, loans 90 days or more past due and still accruing interest and other real estate owned.
John Marshall Bancorp, Inc.
Consolidated Balance Sheets
(Dollar amounts in thousands, except per share data)
% Change
September 30,
December 31,
September 30,
Last Nine
Year Over
2024
2023
2023
Months
Year
Assets
(Unaudited)
*
(Unaudited)
Cash and due from banks
$
8,164
$
7,424
$
7,642
10.0
%
6.8
%
Interest-bearing deposits in banks
169,063
91,581
185,014
84.6
%
(8.6
)%
Securities available-for-sale, at fair value
144,649
169,993
169,084
(14.9
)%
(14.5
)%
Securities held-to-maturity at amortized cost, fair value of $79,731, $79,532, and $75,733 at 9/30/2024, 12/31/2023, and 9/30/2023, respectively.
92,863
95,505
96,347
(2.8
)%
(3.6
)%
Restricted securities, at cost
7,630
5,012
5,007
52.2
%
52.4
%
Equity securities, at fair value
2,698
2,792
2,443
(3.4
)%
10.4
%
Loans, net of unearned income
1,842,598
1,859,967
1,820,132
(0.9
)%
1.2
%
Allowance for credit losses
(18,481
)
(19,543
)
(20,036
)
(5.4
)%
(7.8
)%
Net loans
1,824,117
1,840,424
1,800,096
(0.9
)%
1.3
%
Bank premises and equipment, net
1,179
1,281
1,264
(8.0
)%
(6.7
)%
Accrued interest receivable
5,657
6,110
5,701
(7.4
)%
(0.8
)%
Right of use assets
3,824
4,176
4,136
(8.4
)%
(7.5
)%
Other assets
14,519
18,251
21,468
(20.4
)%
(32.4
)%
Total assets
$
2,274,363
$
2,242,549
$
2,298,202
1.4
%
(1.0
)%
Liabilities and Shareholders’ Equity
Liabilities
Deposits:
Non-interest bearing demand deposits
$
472,422
$
411,374
$
437,880
14.8
%
7.9
%
Interest-bearing demand deposits
685,385
607,971
675,819
12.7
%
1.4
%
Savings deposits
43,779
52,061
57,408
(15.9
)%
(23.7
)%
Time deposits
734,564
835,194
810,516
(12.0
)%
(9.4
)%
Total deposits
1,936,150
1,906,600
1,981,623
1.5
%
(2.3
)%
Federal funds purchased
– –
10,000
– –
(100.0
)%
N/M
Federal Home Loan Bank advances
56,000
– –
– –
N/M
N/M
Federal Reserve Bank borrowings
– –
54,000
54,000
(100.0
)%
(100.0
)%
Subordinated debt, net
24,770
24,708
24,687
0.3
%
0.3
%
Accrued interest payable
2,304
4,559
2,610
(49.5
)%
(11.7
)%
Lease liabilities
4,090
4,446
4,415
(8.0
)%
(7.4
)%
Other liabilities
7,931
8,322
10,300
(4.7
)%
(23.0
)%
Total liabilities
2,031,245
2,012,635
2,077,635
0.9
%
(2.2
)%
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, 14,238,677 at 9/30/24 including 45,753 unvested shares, issued and outstanding, 14,148,533 at 12/31/2023 including 47,318 unvested shares, and 14,126,084 at 9/30/2023 including 45,871 unvested shares
142
141
141
0.7
%
0.7
%
Additional paid-in capital
97,017
95,636
95,510
1.4
%
1.6
%
Retained earnings
155,174
146,388
141,886
6.0
%
9.4
%
Accumulated other comprehensive loss
(9,215
)
(12,251
)
(16,970
)
(24.8
)%
(45.7
)%
Total shareholders’ equity
243,118
229,914
220,567
5.7
%
10.2
%
Total liabilities and shareholders’ equity
$
2,274,363
$
2,242,549
$
2,298,202
1.4
%
(1.0
)%
* 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
Nine Months Ended
September 30
September 30
2024
2023
% Change
2024
2023
% Change
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
Interest and Dividend Income
Interest and fees on loans
$
24,306
$
21,925
10.9
%
$
71,289
$
63,355
12.5
%
Interest on investment securities, taxable
1,138
1,507
(24.5
)%
3,602
5,895
(38.9
)%
Interest on investment securities, tax-exempt
9
10
(10.0
)%
27
45
(40.0
)%
Dividends
97
75
29.3
%
262
222
18.0
%
Interest on deposits in other banks
2,878
2,746
4.8
%
6,958
4,654
49.5
%
Total interest and dividend income
28,428
26,263
8.2
%
82,138
74,171
10.7
%
Interest Expense
Deposits
14,102
13,273
6.2
%
41,484
33,590
23.5
%
Federal funds purchased
– –
– –
N/M
2
10
N/M
Federal Home Loan Bank advances
174
– –
N/M
174
67
N/M
Federal Reserve Bank borrowings
647
662
(2.3
)%
2,451
1,001
144.9
%
Subordinated debt
349
349
—
%
1,047
1,047
—
%
Total interest expense
15,272
14,284
6.9
%
45,158
35,715
26.4
%
Net interest income
13,156
11,979
9.8
%
36,980
38,456
(3.8
)%
Provision for (recovery of) Credit Losses
400
(829
)
(148.3
)%
(667
)
(2,471
)
(73.0
)%
Net interest income after provision for (recovery of) credit losses
12,756
12,808
(0.4
)%
37,647
40,927
(8.0
)%
Non-interest Income
Service charges on deposit accounts
84
85
(1.2
)%
260
239
8.8
%
Bank owned life insurance
– –
23
N/M
– –
224
N/M
Other service charges and fees
160
160
– –
%
474
677
(30.0
)%
Losses on sale of available-for-sale securities
– –
(17,114
)
N/M
– –
(17,316
)
N/M
Insurance commissions
64
54
18.5
%
357
310
15.2
%
Gain on sale of government guaranteed loans
160
27
N/M
509
50
N/M
Non-qualified deferred compensation plan asset gains (loss), net
139
(60
)
N/M
298
112
166.1
%
Other income
10
10
– –
%
92
140
(34.3
)%
Total non-interest income (loss)
617
(16,815
)
(103.7
)%
1,990
(15,564
)
(112.8
)
Non-interest Expenses
Salaries and employee benefits
4,897
5,052
(3.1
)%
14,583
14,929
(2.3
)%
Occupancy expense of premises
444
445
—
%
1,343
1,363
(1.5
)%
Furniture and equipment expenses
304
282
7.8
%
902
882
2.3
%
Other expenses
2,386
1,881
26.8
%
7,035
6,087
15.6
%
Total non-interest expenses
8,031
7,660
4.8
%
23,863
23,261
2.6
%
Income (Loss) before income taxes
5,342
(11,667
)
(145.8
)%
15,774
2,102
650.4
%
Income Tax Expense (Benefit)
1,107
(1,530
)
(172.4
)%
3,430
1,446
137.2
%
Net income (Loss)
$
4,235
$
(10,137
)
(141.8
)%
$
12,344
$
656
1,781.7
%
Earnings Per Share
Basic
$
0.30
$
(0.72
)
N/M
$
0.87
$
0.05
N/M
Diluted
$
0.30
$
(0.72
)
N/M
$
0.87
$
0.05
N/M
John Marshall Bancorp, Inc.
Historical Trends – Quarterly Financial Data (Unaudited)
(Dollar amounts in thousands, except per share data)
2024
2023
September 30
June 30
March 31
December 31
September 30
June 30
March 31
Profitability for the Quarter:
Interest income
$
28,428
$
26,791
$
26,919
$
26,598
$
26,263
$
24,455
$
23,453
Interest expense
15,272
14,710
15,175
14,571
14,284
12,446
8,984
Net interest income
13,156
12,081
11,744
12,027
11,979
12,009
14,469
Provision for (recovery of) credit losses
400
(292
)
(776
)
(781
)
(829
)
(868
)
(774
)
Non-interest income (loss)
617
555
818
624
(16,815
)
685
566
Non-interest expenses
8,031
7,909
7,924
7,554
7,660
7,831
7,770
Income (loss) before income taxes
5,342
5,019
5,414
5,878
(11,667
)
5,731
8,039
Income tax expense (benefit)
1,107
1,114
1,210
1,376
(1,530
)
1,241
1,735
Net income (loss)
$
4,235
$
3,905
$
4,204
$
4,502
$
(10,137
)
$
4,490
$
6,304
Financial Performance:
Return on average assets (annualized)
0.73
%
0.70
%
0.75
%
0.78
%
(1.73
)%
0.77
%
1.10
%
Return on average equity (annualized)
7.00
%
6.68
%
7.23
%
7.91
%
(18.24
)%
8.13
%
11.83
%
Net interest margin
2.30
%
2.19
%
2.10
%
2.11
%
2.07
%
2.09
%
2.56
%
Tax-equivalent net interest margin (Non-GAAP)
2.30
%
2.19
%
2.11
%
2.12
%
2.08
%
2.10
%
2.57
%
Non-interest income (loss) as a percentage of average assets (annualized)
0.11
%
0.10
%
0.15
%
0.11
%
(2.86
)%
0.12
%
0.10
%
Non-interest expense to average assets (annualized)
1.39
%
1.42
%
1.41
%
1.31
%
1.30
%
1.34
%
1.35
%
Efficiency ratio
58.3
%
62.6
%
63.1
%
59.7
%
(158.4
)%
61.7
%
51.7
%
Per Share Data:
Earnings (loss) per share – basic
$
0.30
$
0.27
$
0.30
$
0.32
$
(0.72
)
$
0.32
$
0.45
Earnings (loss) per share – diluted
$
0.30
$
0.27
$
0.30
$
0.32
$
(0.72
)
$
0.32
$
0.44
Book value per share
$
17.07
$
16.54
$
16.51
$
16.25
$
15.61
$
15.50
$
15.63
Dividends declared per share
$
– –
$
0.25
$
– –
$
– –
$
– –
$
0.22
$
– –
Weighted average common shares (basic)
14,187,691
14,173,245
14,130,986
14,082,762
14,080,026
14,077,658
14,067,047
Weighted average common shares (diluted)
14,214,586
14,200,171
14,181,254
14,145,607
14,080,026
14,143,253
14,156,724
Common shares outstanding at end of period
14,238,677
14,229,853
14,209,606
14,148,533
14,126,084
14,126,138
14,125,208
Non-interest Income:
Service charges on deposit accounts
$
84
$
88
$
88
$
91
$
85
$
82
$
72
Bank owned life insurance
– –
– –
– –
– –
23
101
100
Other service charges and fees
160
165
149
161
160
314
203
Losses on sale of available-for-sale securities
– –
– –
– –
– –
(17,114
)
– –
(202
)
Insurance commissions
64
40
252
76
54
50
206
Gain on sale of government guaranteed loans
160
216
133
81
27
23
– –
Non-qualified deferred compensation plan asset gains (losses), net
139
35
124
205
(60
)
83
89
Other income
10
11
72
10
10
32
98
Total non-interest income (loss)
$
617
$
555
$
818
$
624
$
(16,815
)
$
685
$
566
Non-interest Expenses:
Salaries and employee benefits
$
4,897
$
4,875
$
4,810
$
4,507
$
5,052
$
4,965
$
4,912
Occupancy expense of premises
444
448
451
448
445
448
470
Furniture and equipment expenses
304
301
297
296
282
304
296
Other expenses
2,386
2,285
2,366
2,303
1,881
2,114
2,092
Total non-interest expenses
$
8,031
$
7,909
$
7,924
$
7,554
$
7,660
$
7,831
$
7,770
Balance Sheets at Quarter End:
Total loans, net of unearned income
$
1,842,598
$
1,827,187
$
1,825,931
$
1,859,967
$
1,820,132
$
1,769,801
$
1,771,272
Allowance for loan credit losses
(18,481
)
(18,433
)
(18,671
)
(19,543
)
(20,036
)
(20,629
)
(21,619
)
Investment securities
247,840
249,582
261,341
273,302
272,881
429,954
445,785
Interest-earning assets
2,259,501
2,249,350
2,234,592
2,224,850
2,278,027
2,315,368
2,312,404
Total assets
2,274,363
2,269,757
2,251,837
2,242,549
2,298,202
2,364,250
2,351,307
Total deposits
1,936,150
1,912,840
1,900,990
1,906,600
1,981,623
2,046,309
2,088,642
Total interest-bearing liabilities
1,544,498
1,577,420
1,598,050
1,583,934
1,622,430
1,691,044
1,665,837
Total shareholders’ equity
243,118
235,346
234,550
229,914
220,567
218,970
220,823
Quarterly Average Balance Sheets:
Total loans, net of unearned income
$
1,818,472
$
1,810,722
$
1,835,966
$
1,837,855
$
1,790,720
$
1,767,831
$
1,772,922
Investment securities
249,354
255,940
270,760
273,264
310,407
441,778
463,254
Interest-earning assets
2,277,427
2,222,658
2,247,620
2,260,356
2,301,642
2,305,050
2,295,677
Total assets
2,292,385
2,239,261
2,264,544
2,280,060
2,331,403
2,344,712
2,334,695
Total deposits
1,939,601
1,883,010
1,914,173
1,956,039
2,012,934
2,051,702
2,066,139
Total interest-bearing liabilities
1,573,631
1,551,953
1,600,197
1,587,179
1,660,980
1,667,597
1,621,131
Total shareholders’ equity
240,609
235,136
233,952
225,718
220,473
221,608
220,282
Financial Measures:
Average equity to average assets
10.5
%
10.5
%
10.3
%
9.9
%
9.5
%
9.5
%
9.4
%
Investment securities to earning assets
11.0
%
11.1
%
11.7
%
12.3
%
12.0
%
18.6
%
19.3
%
Loans to earning assets
81.5
%
81.2
%
81.7
%
83.6
%
79.9
%
76.4
%
76.6
%
Loans to assets
81.0
%
80.5
%
81.1
%
82.9
%
79.2
%
74.9
%
75.3
%
Loans to deposits
95.2
%
95.5
%
96.1
%
97.6
%
91.9
%
86.5
%
84.8
%
Capital Ratios (Bank Level):
Equity / assets
11.6
%
11.4
%
11.3
%
11.1
%
10.6
%
10.2
%
10.3
%
Total risk-based capital ratio
16.3
%
16.4
%
16.1
%
15.7
%
15.7
%
16.1
%
16.1
%
Tier 1 risk-based capital ratio
15.3
%
15.4
%
15.1
%
14.7
%
14.6
%
15.0
%
14.9
%
Common equity tier 1 ratio
15.3
%
15.4
%
15.1
%
14.7
%
14.6
%
15.0
%
14.9
%
Leverage ratio
11.9
%
12.2
%
11.8
%
11.6
%
11.3
%
11.6
%
11.5
%
John Marshall Bancorp, Inc.
Loan, Deposit and Borrowing Detail (Unaudited)
(Dollar amounts in thousands)
2024
2023
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
$
39,741
2.2
%
$
41,806
2.3
%
$
42,779
2.3
%
$
45,073
2.4
%
$
37,793
2.1
%
$
40,156
2.3
%
$
41,204
2.3
%
Commercial PPP loans
126
0.0
%
127
0.0
%
129
0.0
%
131
0.0
%
132
0.0
%
133
0.0
%
135
0.0
%
Commercial owner-occupied real estate loans
343,906
18.7
%
349,644
19.2
%
356,335
19.6
%
360,102
19.4
%
363,017
20.0
%
360,859
20.4
%
363,495
20.6
%
Total business loans
383,773
20.9
%
391,577
21.5
%
399,243
21.9
%
405,306
21.8
%
400,942
22.1
%
401,148
22.7
%
404,834
22.9
%
Investor real estate loans
726,771
39.5
%
722,419
39.6
%
692,418
38.0
%
689,556
37.1
%
683,686
37.6
%
654,623
37.0
%
660,740
37.4
%
Construction & development loans
161,466
8.8
%
138,744
7.6
%
151,476
8.3
%
180,922
9.8
%
179,570
9.9
%
179,656
10.2
%
179,606
10.2
%
Multi-family loans
91,426
5.0
%
91,925
5.1
%
94,719
5.2
%
96,458
5.2
%
86,366
4.8
%
86,061
4.9
%
88,670
5.0
%
Total commercial real estate loans
979,663
53.3
%
953,088
52.3
%
938,613
51.5
%
966,936
52.1
%
949,622
52.3
%
920,340
52.1
%
929,016
52.6
%
Residential mortgage loans
473,787
25.8
%
476,764
26.2
%
482,254
26.5
%
482,182
26.1
%
464,509
25.7
%
443,305
25.2
%
433,076
24.5
%
Consumer loans
877
0.0
%
876
0.0
%
772
0.0
%
560
0.0
%
467
0.0
%
646
0.0
%
324
0.0
%
Total loans
$
1,838,100
100.0
%
$
1,822,305
100.0
%
$
1,820,882
100.0
%
$
1,854,984
100.0
%
$
1,815,540
100.0
%
$
1,765,439
100.0
%
$
1,767,250
100.0
%
Less: Allowance for loan credit losses
(18,481)
(18,433)
(18,671)
(19,543)
(20,036)
(20,629)
(21,619)
Net deferred loan costs (fees)
4,498
4,882
5,049
4,983
4,592
4,362
4,022
Net loans
$
1,824,117
$
1,808,754
$
1,807,260
$
1,840,424
$
1,800,096
$
1,749,172
$
1,749,653
2024
2023
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
$
472,422
24.4
%
$
437,169
22.8
%
$
404,669
21.3
%
$
411,374
21.6
%
$
437,880
22.1
%
$
433,931
21.2
%
$
447,450
21.4
%
Interest-bearing demand deposits:
NOW accounts(1)
324,660
16.8
%
321,702
16.8
%
318,445
16.8
%
297,321
15.6
%
345,522
17.4
%
311,225
15.2
%
284,872
13.7
%
Money market accounts(1)
360,725
18.6
%
346,249
18.1
%
326,135
17.1
%
310,650
16.3
%
330,297
16.6
%
341,413
16.7
%
392,962
18.8
%
Savings accounts
43,779
2.3
%
45,884
2.4
%
50,664
2.7
%
52,061
2.8
%
57,408
3.0
%
68,013
3.4
%
81,150
3.9
%
Certificates of deposit
$250,000 or more
334,591
17.3
%
339,908
17.8
%
355,766
18.7
%
357,768
18.7
%
364,805
18.4
%
376,899
18.4
%
338,824
16.2
%
Less than $250,000
86,932
4.5
%
91,258
4.8
%
99,694
5.2
%
101,567
5.3
%
103,600
5.2
%
105,956
5.2
%
94,429
4.5
%
QwickRate® certificates of deposit
4,119
0.2
%
4,119
0.2
%
5,117
0.3
%
9,686
0.5
%
11,526
0.6
%
12,772
0.6
%
16,952
0.8
%
IntraFi® certificates of deposit
32,801
1.7
%
32,922
1.7
%
34,443
1.8
%
45,748
2.4
%
41,659
2.1
%
49,729
2.4
%
53,178
2.5
%
Brokered deposits
276,121
14.3
%
293,629
15.4
%
306,057
16.1
%
320,425
16.8
%
288,926
14.6
%
346,371
16.9
%
378,825
18.2
%
Total deposits
$
1,936,150
100.0
%
$
1,912,840
100.0
%
$
1,900,990
100.0
%
$
1,906,600
100.0
%
$
1,981,623
100.0
%
$
2,046,309
100.0
%
$
2,088,642
100.0
%
Borrowings
Federal funds purchased
$
– –
0.0
%
$
– –
0.0
%
$
– –
0.0
%
$
10,000
11.3
%
$
– –
0.0
%
$
– –
0.0
%
$
– –
0.0
%
Federal Home Loan Bank advances
56,000
69.3
%
– –
0.0
%
– –
0.0
%
– –
0.0
%
– –
0.0
%
– –
0.0
%
– –
0.0
%
Federal Reserve Bank borrowings
– –
0.0
%
77,000
75.7
%
77,000
75.7
%
54,000
60.9
%
54,000
68.6
%
54,000
68.6
%
– –
0.0
%
Subordinated debt, net
24,770
30.7
%
24,749
24.3
%
24,729
24.3
%
24,708
27.8
%
24,687
31.4
%
24,666
31.4
%
24,645
100.0
%
Total borrowings
$
80,770
100.0
%
$
101,749
100.0
%
$
101,729
100.0
%
$
88,708
100.0
%
$
78,687
100.0
%
$
78,666
100.0
%
$
24,645
100.0
%
Total deposits and borrowings
$
2,016,920
$
2,014,589
$
2,002,719
$
1,995,308
$
2,060,310
$
2,124,975
$
2,113,287
Core customer funding sources (2)
$
1,655,910
83.1
%
$
1,615,092
81.2
%
$
1,589,816
80.4
%
$
1,576,489
80.0
%
$
1,681,171
82.6
%
$
1,687,166
80.3
%
$
1,692,865
81.1
%
Wholesale funding sources (3)
336,240
16.9
%
374,748
18.8
%
388,174
19.6
%
394,111
20.0
%
354,452
17.4
%
413,143
19.7
%
395,777
18.9
%
Total funding sources
$
1,992,150
100.0
%
$
1,989,840
100.0
%
$
1,977,990
100.0
%
$
1,970,600
100.0
%
$
2,035,623
100.0
%
$
2,100,309
100.0
%
$
2,088,642
100.0
%
______________________
(1)
Includes IntraFi® accounts.
(2)
Includes reciprocal IntraFi Demand®, IntraFi Money Market® and IntraFi CD® deposits, which are maintained by customers.
(3)
Consists of QwickRate® certificates of deposit, brokered deposits, federal funds purchased, Federal Home Loan Bank advances and Federal Reserve Bank borrowings.
John Marshall Bancorp, Inc.
Average Balance Sheets, Interest and Rates (unaudited)
(Dollar amounts in thousands)
Nine Months Ended September 30, 2024
Nine Months Ended September 30, 2023
Interest Income /
Average
Interest Income /
Average
(Dollars in thousands)
Average Balance
Expense
Rate
Average Balance
Expense
Rate
Assets:
Securities:
Taxable
$
257,272
$
3,864
2.01
%
$
401,623
$
6,117
2.04
%
Tax-exempt(1)
1,379
34
3.29
%
2,678
56
2.80
%
Total securities
$
258,651
$
3,898
2.01
%
$
404,301
$
6,173
2.04
%
Loans, net of unearned income(2):
Taxable
1,802,807
70,858
5.25
%
1,748,904
62,664
4.79
%
Tax-exempt(1)
18,901
546
3.86
%
28,319
875
4.13
%
Total loans, net of unearned income
$
1,821,708
$
71,404
5.24
%
$
1,777,223
$
63,539
4.78
%
Interest-bearing deposits in other banks
$
168,979
$
6,958
5.50
%
$
119,002
$
4,654
5.23
%
Total interest-earning assets
$
2,249,338
$
82,260
4.88
%
$
2,300,526
$
74,366
4.32
%
Total non-interest earning assets
16,133
36,572
Total assets
$
2,265,471
$
2,337,098
Liabilities & Shareholders’ Equity:
Interest-bearing deposits
NOW accounts
$
312,255
$
6,533
2.79
%
$
291,217
$
4,484
2.06
%
Money market accounts
340,362
8,190
3.21
%
374,053
7,560
2.70
%
Savings accounts
50,060
529
1.41
%
75,273
673
1.20
%
Time deposits
773,537
26,232
4.53
%
855,076
20,873
3.26
%
Total interest-bearing deposits
$
1,476,214
$
41,484
3.75
%
$
1,595,619
$
33,590
2.81
%
Federal funds purchased
37
2
7.22
%
294
10
4.55
%
Subordinated debt
24,737
1,047
5.65
%
24,653
1,047
5.68
%
Federal Reserve Bank borrowings
68,543
2,451
4.78
%
27,494
1,001
4.86
%
Federal Home Loan Bank advances
5,723
174
4.06
%
1,989
67
4.50
%
Total interest-bearing liabilities
$
1,575,254
$
45,158
3.83
%
$
1,650,049
$
35,715
2.89
%
Demand deposits
436,147
447,778
Other liabilities
17,489
18,483
Total liabilities
$
2,028,890
$
2,116,310
Shareholders’ equity
$
236,581
$
220,788
Total liabilities and shareholders’ equity
$
2,265,471
$
2,337,098
Tax-equivalent net interest income and spread (Non-GAAP)(1)
$
37,102
1.06
%
$
38,651
1.43
%
Less: tax-equivalent adjustment
122
195
Net interest income and spread (GAAP)
$
36,980
1.05
%
$
38,456
1.40
%
Interest income/earning assets
4.88
%
4.29
%
Interest expense/earning assets
2.68
%
2.08
%
Net interest margin
2.20
%
2.21
%
Tax-equivalent interest income/earning assets (Non-GAAP)(1)
4.88
%
4.32
%
Interest expense/earning assets
2.68
%
2.08
%
Tax-equivalent net interest margin (Non-GAAP)(3)
2.20
%
2.24
%
________________
(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 $122 thousand and $195 thousand for the nine months ended September 30, 2024 and September 30, 2023, respectively.
(2)
The Company did not have any loans on non-accrual as of September 30, 2024 and September 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 September 30, 2024
Three Months Ended September 30, 2023
Interest Income /
Average
Interest Income /
Average
(Dollars in thousands)
Average Balance
Expense
Rate
Average Balance
Expense
Rate
Assets:
Securities:
Taxable
$
247,975
$
1,235
1.98
%
$
308,723
$
1,582
2.03
%
Tax-exempt(1)
1,379
11
3.17
%
1,684
13
3.06
%
Total securities
$
249,354
$
1,246
1.99
%
$
310,407
$
1,595
2.04
%
Loans, net of unearned income(2):
Taxable
1,801,422
24,173
5.34
%
1,762,653
21,695
4.88
%
Tax-exempt(1)
17,050
168
3.92
%
28,067
292
4.13
%
Total loans, net of unearned income
$
1,818,472
$
24,341
5.33
%
$
1,790,720
$
21,987
4.87
%
Interest-bearing deposits in other banks
$
209,601
$
2,878
5.46
%
$
200,515
$
2,746
5.43
%
Total interest-earning assets
$
2,277,427
$
28,465
4.97
%
$
2,301,642
$
26,328
4.54
%
Total non-interest earning assets
14,958
29,761
Total assets
$
2,292,385
$
2,331,403
Liabilities & Shareholders’ Equity:
Interest-bearing deposits
NOW accounts
$
319,463
2,321
2.89
%
$
327,309
$
2,239
2.71
%
Money market accounts
374,141
3,068
3.26
%
341,672
2,609
3.03
%
Savings accounts
45,980
168
1.45
%
63,956
198
1.23
%
Time deposits
738,680
8,545
4.60
%
849,270
8,227
3.84
%
Total interest-bearing deposits
$
1,478,264
$
14,102
3.80
%
$
1,582,207
$
13,273
3.33
%
Federal funds purchased
—
—
N/M
99
—
NM
Subordinated debt
24,758
349
5.61
%
24,674
349
5.61
%
Federal Reserve Bank borrowings
53,565
647
4.81
%
54,000
662
4.86
%
Federal Home Loan Bank advances
17,044
174
4.06
%
—
—
NM
Total interest-bearing liabilities
$
1,573,631
$
15,272
3.86
%
$
1,660,980
$
14,284
3.41
%
Demand deposits
461,337
430,727
Other liabilities
16,808
19,223
Total liabilities
$
2,051,776
$
2,110,930
Shareholders’ equity
$
240,609
$
220,473
Total liabilities and shareholders’ equity
$
2,292,385
$
2,331,403
Tax-equivalent net interest income and spread (Non-GAAP)(1)
$
13,193
1.11
%
$
12,044
1.13
%
Less: tax-equivalent adjustment
37
65
Net interest income and spread (GAAP)
$
13,156
1.11
%
$
11,979
1.12
%
Interest income/earning assets
4.97
%
4.53
%
Interest expense/earning assets
2.67
%
2.46
%
Net interest margin
2.30
%
2.07
%
Tax-equivalent interest income/earning assets (Non-GAAP)(1)
4.97
%
4.54
%
Interest expense/earning assets
2.67
%
2.46
%
Tax-equivalent net interest margin (Non-GAAP)(3)
2.30
%
2.08
%
___________________
(1)
Tax-equivalent income and related measures have been adjusted using the federal statutory tax rate of 21%. The annualized taxable-equivalent adjustments utilized in the above table to compute yields aggregated to $37 thousand and $65 thousand for the three months ended September 30, 2024 and September 30, 2023, respectively.
(2)
The Company did not have any loans on non-accrual as of September 30, 2024 and September 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
September 30, 2024
December 31, 2023
September 30, 2023
Regulatory Ratios (Bank)
Total risk-based capital (GAAP)
$
291,881
$
282,082
$
280,891
Less: Unrealized losses on available-for-sale securities, net of tax benefit (1)
9,304
12,401
17,143
Less: Unrealized losses on held-to-maturity securities, net of tax benefit (1)
10,285
12,469
16,285
Adjusted total risk-based capital, excluding unrealized losses on available-for-sale and held-to-maturity securities, net of tax benefit (Non-GAAP)
$
272,292
$
257,212
$
247,463
Tier 1 capital (GAAP)
$
273,529
$
263,637
$
261,666
Less: Unrealized losses on available-for-sale securities, net of tax benefit (1)
9,304
12,401
17,143
Less: Unrealized losses on held-to-maturity securities, net of tax benefit (1)
10,285
12,469
16,285
Adjusted tier 1 capital, excluding unrealized losses on available-for-sale and held-to-maturity securities, net of tax benefit (Non-GAAP)
$
253,940
$
238,767
$
228,238
Risk weighted assets (GAAP)
$
1,787,663
$
1,794,769
$
1,794,603
Less: Risk weighted available-for-sale securities
21,440
24,184
25,094
Less: Risk weighted held-to-maturity securities
16,618
17,079
17,229
Adjusted risk weighted assets, excluding available-for-sale and held-to-maturity securities (Non-GAAP)
$
1,749,605
$
1,753,506
$
1,752,280
Total average assets for leverage ratio (GAAP)
$
2,290,205
$
2,274,911
$
2,326,722
Less: Unrealized losses on available-for-sale securities, net of tax benefit (1)
9,304
12,401
206,116
Less: Unrealized losses on held-to-maturity securities, net of tax benefit (1)
10,285
12,469
96,988
Adjusted total average assets for leverage ratio, excluding available-for-sale and held-to-maturity securities (Non-GAAP)
$
2,270,616
$
2,250,041
$
2,023,618
Total risk-based capital ratio (2)
Total risk-based capital ratio (GAAP)
16.3
%
15.7
%
15.7
%
Adjusted total risk-based capital ratio (Non-GAAP) (3)
15.6
%
14.7
%
14.1
%
Tier 1 capital ratio (4)
Tier 1 risk-based capital ratio (GAAP)
15.3
%
14.7
%
14.6
%
Adjusted tier 1 risk-based capital ratio (Non-GAAP) (5)
14.5
%
13.5
%
12.9
%
Common equity tier 1 ratio (6)
Common equity tier 1 ratio (GAAP)
15.3
%
14.7
%
14.6
%
Adjusted common equity tier 1 ratio (Non-GAAP) (7)
14.5
%
13.5
%
12.9
%
Leverage ratio (8)
Leverage ratio (GAAP)
11.9
%
11.6
%
11.3
%
Adjusted leverage ratio (Non-GAAP) (9)
11.2
%
10.6
%
11.3
%
___________________
(1)
Includes tax benefit calculated using the federal statutory tax rate of 21%.
(2)
The total risk-based capital ratio is calculated by dividing total risk-based capital by risk weighted assets.
(3)
The adjusted total risk-based capital ratio is calculated by dividing adjusted total risk-based capital by adjusted risk weighted assets.
(4)
The tier 1 capital ratio is calculated by dividing tier 1 capital by risk weighted assets.
(5)
The adjusted tier 1 capital ratio is calculated by dividing adjusted tier 1 capital by adjusted risk weighted assets.
(6)
The common equity tier 1 ratio is calculated by dividing tier 1 capital by risk weighted assets.
(7)
The adjusted common equity tier 1 ratio is calculated by dividing adjusted tier 1 capital by adjusted risk weighted assets.
(8)
The leverage ratio is calculated by dividing tier 1 capital by total average assets for leverage ratio.
(9)
The adjusted leverage ratio is calculated by dividing adjusted tier 1 capital by adjusted total average assets for leverage ratio.
John Marshall Bancorp, Inc.
Reconciliation of Certain Non-GAAP Financial Measures (unaudited)
(Dollar amounts in thousands, except per share data)
For the Three
Months Ended
For the Nine
Months Ended
September 30, 2023
September 30, 2023
Non-interest income (loss) (GAAP)
$
(16,815
)
$
(15,564
)
Adjustment: Pre-tax loss recognized on sale of available-for-sale securities
17,114
17,114
Core non-interest income (Non-GAAP)
$
299
$
1,550
Income (loss) before taxes (GAAP)
$
(11,667
)
$
2,102
Adjustment: Pre-tax loss recognized on sale of available-for-sale securities
17,114
17,114
Core income before taxes (Non-GAAP)
$
5,447
$
19,216
Income tax expense (benefit) (GAAP)
$
(1,530
)
$
1,446
Adjustment: Tax and 10% modified endowment contract penalty on early surrender of BOLI policies
(1,101
)
(1,101
)
Adjustment: Tax benefit of loss recognized on sale of available-for-sale securities
3,594
3,594
Core income tax expense (Non-GAAP)(1)
$
963
$
3,939
Net income (loss) (GAAP)
$
(10,137
)
$
656
Core net income (Non-GAAP)(2)
$
4,484
$
15,277
Earnings (loss) per share – basic (GAAP)
$
(0.72
)
$
0.05
Core earnings per share – basic (Non-GAAP)(3)
$
0.32
$
1.08
Earnings (loss) per share – diluted (GAAP)
$
(0.72
)
$
0.05
Core earnings per share – diluted (Non-GAAP)(3)
$
0.32
$
1.08
Return on average assets (annualized) (GAAP)
(1.73
)%
0.04
Core return on average assets (annualized) (Non-GAAP)(4)
0.76
%
0.87
Return on average equity (annualized) (GAAP)
(18.24
)%
0.40
Core return on average equity (annualized) (Non-GAAP)(5)
8.07
%
9.25
Non-interest income (loss) as a percentage of average assets (annualized) (GAAP)
(2.86
)%
(0.89
)
Core non-interest income as a percentage of average assets (annualized) (Non-GAAP)(6)
0.05
%
0.09
Efficiency ratio (GAAP)
(158.4
)%
101.6
Core efficiency ratio (Non-GAAP)(7)
62.4
%
58.1
For the Three Months Ended
September 30, 2024
June 30, 2024
March 31, 2024
Pre-tax, pre-provision earnings (Non-GAAP)
Income before income taxes
$
5,342
$
5,019
$
5,414
Adjustment: Provision for (recovery of) credit losses
400
(292
)
(776
)
Pre-tax, pre-provision earnings (Non-GAAP)(8)
$
5,742
$
4,727
$
4,638
_____________________
(1)
Includes tax benefit (expense) calculated using the federal statutory tax rate of 21%.
(2)
Core net income reflects net income adjusted for the non-recurring tax effected loss recognized on the sale of available-for-sale securities in and non-recurring tax expense associated with the surrender of the Company’s BOLI policies in July 2023. It is calculated by subtracting core income tax expense from core income before taxes for each period presented.
(3)
Core earnings per share – basic and core earnings per share – diluted is calculated by dividing core net income by basic weighted average shares outstanding and diluted weighted average shares outstanding, respectively, for each period presented.
(4)
Core return on average assets (annualized) is calculated by dividing annualizing core net income by average assets for each period presented.
(5)
Core return on average equity (annualized) is calculated by dividing annualizing core net income by average equity for each period presented.
(6)
Core non-interest income as a percentage of average assets (annualized) is calculated by dividing annualized core non-interest income by average assets for each period presented.
(7)
Core efficiency ratio is calculated by dividing non-interest expense by the sum of core non-interest income and net interest income for each period presented.
(8)
Pre-tax, pre-provision earnings is calculated by adjusting income before taxes for provision for (recovery of) credit losses.
Category: Earnings
View source version on businesswire.com: https://www.businesswire.com/news/home/20241023470216/en/
Christopher W. Bergstrom, (703) 584-0840
Kent D. Carstater, (703) 289-5922
Source: John Marshall
FAQ
What was John Marshall Bancorp’s (JMSB) net income for Q3 2024?
John Marshall Bancorp reported net income of $4.2 million ($0.30 per diluted share) for Q3 2024.
How much did JMSB’s core deposits grow in Q3 2024?
Core customer funding sources grew by $40.0 million, or 6.8% annualized, since June 30, 2024.
What was JMSB’s book value per share as of September 30, 2024?
JMSB’s book value per share was $17.07 as of September 30, 2024, representing a 9.4% increase from September 30, 2023.
What was JMSB’s loan pipeline growth in Q3 2024?
JMSB recorded $128.1 million in new loan commitments during Q3 2024, a 44.9% increase from $88.4 million in Q2 2024.
