Strong Balance Sheet, Stable Margin and
Well-Positioned for Loan Growth
John Marshall Bancorp, Inc. (Nasdaq: JMSB) (the “Company”),
parent company of John Marshall Bank (the “Bank”), reported its
financial results for the three months ended March 31, 2024.
Selected Highlights
- Pristine Asset Quality – For the eighteenth 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. As of March 31, 2024, there were no credits classified
as substandard, doubtful or loss.
- Well-Capitalized – Each of the Bank’s regulatory capital
ratios is well in excess of the regulatory threshold for the Bank
to be considered well-capitalized. The Bank’s equity to assets and
total risk-based capital ratios were 11.3% and 16.1%, respectively,
as of March 31, 2024.
- 13.6% Annual Cash Dividend Increase – The Company
declared an annual cash dividend on April 24, 2024 of $0.25 per
outstanding share of common stock. The dividend will be payable on
July 8, 2024, to shareholders of record as of the close of business
on June 28, 2024. This per share amount reflects a 13.6% increase
over the annual cash dividend paid in 2023 and 25% increase over
the initial cash dividend paid in 2022.
- Stable Net Interest Margin – Net interest margin was
2.11% for the three months ended March 31, 2024. For each of the
past four quarters, the Company’s net interest margin has ranged
from 2.08% to 2.12%.
- Diversified Revenue Growth – The Company’s non-interest
income strategy accelerated in the first quarter of 2024. Recurring
non-interest income (excluding the impact of securities sales,
discontinued BOLI investment and the mark-to-market of
non-qualified deferred compensation plan assets) grew $115 thousand
or 19.9% from the first quarter of 2023 to the first quarter of
2024. During the first three months of 2024, the Company realized
$133 thousand in gains on the sale of certain U.S. Small Business
Administration (“SBA”) loans and swap fee income of $64 thousand.
As announced in December 2023, the Bank is a SBA designated
preferred lender, streamlining the loan approval process for our
customers. The Company expects to accelerate SBA loan sale revenue
and, in the current rate environment, our pipeline of borrowers
evaluating swaps continues to grow.
- Expanding Digital Platform to Enhance Low-Cost Deposit
Gathering – At the end of the first quarter of 2024, the
Company launched Escrow Optimizer, a 24/7 digital solution that
offers tracking of transactions along with reporting and tax form
capabilities that simplify the daily operations of managing escrow
and subaccounts for customers. With this new and innovative
solution, customers will benefit from the ability to open, close,
and fund subaccounts at any time while also being able to segregate
funds for more efficient business management or to fulfill
compliance requirements. This technology will provide an avenue for
growth, efficiency, and income for our customers and is beneficial
to anyone with a fiduciary responsibility. We believe the
convenience and enhanced functionality will drive the growth of
new, low-cost deposit relationships.
- Targeted Business Development Hires – The Company
remains focused on growing loans, deposits and non-interest income
and has hired four experienced business development professionals
to date in 2024.
- Improved Deposit Composition – During the quarter, the
Company grew non-maturing deposits $35.2 million, representing
21.5% annualized growth and reduced wholesale deposits (i.e.,
brokered and QwickRate CDs) by $18.9 million or 23.1% annualized.
Non-maturing deposits represented 57.9% of total deposits as of
March 31, 2024 and 56.2% of total deposits as of December 31,
2023.
- Loan Portfolio Strength – The Company’s loan portfolio
remains of exceptionally high quality. As of March 31, 2024, the
Company’s commercial real estate (“CRE”) non-owner occupied and
owner-occupied portfolios had a weighted average loan-to-values of
49.8% and 54.1%, respectively, and weighted average debt service
coverage ratios of 2.1x and 3.3x, respectively.
Chris Bergstrom, President and Chief Executive Officer,
commented, “The United States economy is experiencing an
unprecedented interest rate environment. The longest inverted yield
curve in our nation’s history commands our attention. Now, more
than ever, our strategy of focusing on local customers with product
and service offerings without undue compliance risk paired with our
strong, liquid, well-capitalized balance sheet, unfettered by
problem assets keeps us well-positioned for the future. In an
unchartered economic environment, we place a greater emphasis on
our financial condition than growth. During the quarter, we
experienced higher than anticipated runoff in our acquisition,
development and construction loan portfolio. Our loan pipeline,
with credits that meet our stringent criteria, is building for
promising growth in the next three to six months. We improved both
the amount and composition of our deposits during the quarter. In
addition, we have ramped up our hiring of seasoned, well-qualified
sales personnel and are equipping them with competitive products
and services, like Escrow Optimizer, that will further fuel our
future loan and deposit growth. Our non-interest income strategy is
starting to bear fruit as we sell more SBA loans and complete
interest rate swaps on behalf of customers. In short, the team at
John Marshall Bank remains committed to maintaining a strong
balance sheet and delivering prudent growth. We are excited to
capitalize on opportunities afforded in our market by providing
relevant products and services and an unmatched customer
experience. As an expression of confidence in the Company’s balance
sheet, the Board of Director’s declared an annual cash dividend of
$0.25 per outstanding share of common stock or 13.6% greater than
last year’s.”
Balance Sheet, Liquidity and Credit
Quality
Total assets were $2.25 billion at March 31, 2024, $2.24 billion
at December 31, 2023, and $2.35 billion at March 31, 2023.
Total loans, net of unearned income, increased $54.7 million or
3.1% to $1.82 billion at March 31, 2024, compared to $1.77 billion
at March 31, 2023 and decreased $34.0 million or 1.8% when compared
to December 31, 2023. Detail on the loan growth can be seen in the
attached tables.
The carrying value of the Company’s fixed income securities
portfolio was $253.4 million at March 31, 2024, $265.5 million at
December 31, 2023 and $438.6 million at March 31, 2023. The
decrease in carrying value of the Company’s fixed income securities
portfolio since March 31, 2023 was primarily attributable to the
July 2023 sale of certain available-for-sale investment securities,
as previously disclosed. As of March 31, 2024, 95.9% of our bond
portfolio carried the implied guarantee of the United States
government or one of its agencies. At March 31, 2024, 61.0% of the
fixed income portfolio was invested in amortizing bonds, which
provides the Company with a source of steady cash flow. At March
31, 2024, the fixed income portfolio had an estimated weighted
average life of 4.3 years. The available-for-sale portfolio
comprised approximately 65.0% of the fixed income securities
portfolio and had a weighted average life of 3.0 years at March 31,
2024. The held-to-maturity portfolio comprised approximately 35.0%
of the fixed income securities portfolio and had a weighted average
life of 6.5 years at March 31, 2024. The Company did not purchase
or sell any fixed income securities during the three month period
ended March 31, 2024.
The Company’s balance sheet remains highly liquid. The Company’s
liquidity position, defined as the sum of cash, unencumbered
securities and available secured borrowing capacity, totaled $788.7
million as of March 31, 2024 compared to $638.9 million as of
December 31, 2023 and represented 35.0% 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
March 31, 2024.
Total deposits were $1.90 billion at March 31, 2024, $1.91
billion at December 31, 2023 and $2.09 billion at March 31, 2023.
Total deposits decreased $5.6 million or 0.3% when compared to
December 31, 2023. The attached tables provide detail on the
deposit activity. As of March 31, 2024, the Company had $627.1
million of deposits that were not insured or not collateralized by
securities compared to $634.1 million at December 31, 2023.
Deposits that were not insured or not collateralized by securities
represented only 33.0% of total deposits at March 31, 2024 compared
to 33.3% at December 31, 2023.
The Company refinanced its $54.0 million advance and advanced an
additional $23.0 million from the Bank Term Funding Program
(“BTFP”) in January 2024 to secure lower funding costs relative to
wholesale deposits and the prior outstanding BTFP advance. The
$77.0 million BTFP advance matures January 2025, bears interest at
a fixed rate of 4.76% and can be prepaid at any time without
penalty prior to maturity. Total borrowings as of March 31, 2024
consisted of subordinated debt totaling $24.7 million and the BTFP
advance totaling $77.0 million.
Shareholders’ equity increased $13.7 million or 6.2% to $234.5
million at March 31, 2024 compared to $220.8 million at March 31,
2023. Book value per share was $16.51 as of March 31, 2024 compared
to $15.63 as of March 31, 2023, an increase of 5.6%. 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 cash dividends paid and increased share count
from shareholder option exercises and restricted share award
issuances. The decrease in accumulated other comprehensive loss was
primarily attributable to the July 2023 sale of certain
available-for-sale investment securities, as previously disclosed,
and decreases in unrealized losses on our available-for-sale
investment portfolio due to market value increases. Book value per
share increased from $16.25 as of December 31, 2023 to $16.51 at
March 31, 2024 or 6.3% annualized.
The Bank’s capital ratios at March 31, 2024 remained well above
regulatory thresholds for well-capitalized banks. As of March 31,
2024, the Bank’s total risk-based capital ratio was 16.1%, compared
to 16.1% at March 31, 2023 and 15.7% at December 31, 2023 (GAAP).
As outlined below, the Bank would continue to remain well above
regulatory thresholds for well-capitalized banks at March 31, 2024
in the hypothetical scenario where the entire bond portfolio was
sold at fair market value and any losses realized (Non-GAAP). Refer
to “Explanation of Non-GAAP Measures” and the “Reconciliation of
Certain Non-GAAP Financial Measures” table for further details
about financial measures used in this release that were determined
by methods other than in accordance with GAAP.
Bank Regulatory Capital Ratios
(As Reported)
Well- Capitalized
Threshold
March 31, 2024
December 31, 2023
March 31, 2023
Total risk-based capital ratio
10.0
%
16.1
%
15.7
%
16.1
%
Tier 1 risk-based capital ratio
8.0
%
15.1
%
14.7
%
14.9
%
Common equity tier 1 ratio
6.5
%
15.1
%
14.7
%
14.9
%
Leverage ratio
5.0
%
11.8
%
11.6
%
11.5
%
Adjusted Bank Regulatory
Capital Ratios (Hypothetical Scenario of Selling All Bonds at Fair
Market Value - Non-GAAP)
Well- Capitalized
Threshold
March 31, 2024
December 31, 2023
March 31, 2023
Adjusted total risk-based capital
ratio
10.0
%
15.0
%
14.7
%
14.6
%
Adjusted tier 1 risk-based capital
ratio
8.0
%
14.0
%
13.5
%
13.3
%
Adjusted common equity tier 1 ratio
6.5
%
14.0
%
13.5
%
13.3
%
Adjusted leverage ratio
5.0
%
12.1
%
11.9
%
12.3
%
The Company recorded no charge-offs during the first quarter of
2024, the fourth quarter of 2023 or the first quarter of 2023. As
of March 31, 2024, the Company had no loans greater than 30 days
past due, no non-accrual loans, and no other real estate owned
assets.
At March 31, 2024, the allowance for loan credit losses was
$18.7 million or 1.02% 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 primarily from changes in the composition and
volume of the loan portfolio, improved economic forecasts used in
the quantitative portion of the model and an assessment of
management’s considerations of qualitative factors combined with
the continued strong credit performance of our loan portfolio
segments.
At March 31, 2024, the allowance for credit losses on unfunded
loan commitments was $0.7 million compared to $0.6 million at
December 31, 2023. The change in the allowance for credit losses on
unfunded loan commitments resulted from the changes mentioned above
and an increase in unfunded commitments during the quarter ended
March 31, 2024.
The Company did not have an allowance for credit losses on
held-to-maturity securities as of March 31, 2024 or December 31,
2023.
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
portfolios as of March 31, 2024, demonstrating their strong
debt-service-coverage and loan-to-value ratios.
Commercial Real Estate
Owner Occupied
Non-owner Occupied
Asset Class
Weighted Average Loan-
to-Value(1)
Weighted Average Debt Service
Coverage Ratio(2)
Number of Total Loans
Principal Balance(3) (Dollars
in thousands)
Weighted Average Loan-
to-Value(1)
Weighted Average Debt Service
Coverage Ratio(2)
Number of Total Loans
Principal Balance(3) (Dollars
in thousands)
Warehouse & Industrial
58.5
%
2.9
x
53
$
79,838
50.7
%
2.6
x
40
$
98,881
Office
59.3
%
3.9
x
127
78,650
48.5
%
1.9
x
61
113,690
Retail
60.8
%
2.4
x
37
58,295
50.0
%
1.9
x
141
399,989
Church
30.3
%
2.6
x
19
35,105
- -
- -
- -
- -
Hotel/Motel
- -
- -
- -
- -
57.6
%
2.6
x
9
49,177
Other(4)
51.0
%
3.8
x
48
104,447
37.0
%
3.1
x
15
30,681
Total
284
$
356,335
266
$
692,418
___________________________
(1)
Loan-to-value is determined at origination
date and is divided by principal balance as of March 31, 2024.
(2)
The debt service coverage ratio (“DSCR”)
is calculated from the primary source of repayment for the loan.
Owner occupied DSCR’s are derived from cash flows from the owner
occupant’s business, property and their guarantors, while non-owner
occupied DSCR’s are derived from the net operating income of the
property.
(3)
Principal balance excludes deferred fees
or costs.
(4)
Other asset class is primarily comprised
of schools, daycares and country clubs.
Income Statement Review
The Company reported net income of $4.2 million for the first
quarter of 2024, a decrease of $2.1 million when compared to $6.3
million for the first quarter of 2023. Net income for the fourth
quarter of 2023 was $4.5 million.
Net interest income for the first quarter of 2024 decreased $2.7
million or 18.8% compared to the first quarter 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 4.83% for the first quarter of
2024 compared to 4.15% for the same period in 2023. The increase in
yield on interest earning assets was primarily due to higher yields
on the Company’s loan portfolio and deposits in banks resulting
from increases in interest rates subsequent to the first quarter of
2023. The cost of interest-bearing liabilities was 3.81% for the
first quarter of 2024 compared to 2.25% for the same quarter in
2023. The increase in the cost of interest-bearing liabilities was
primarily due to a 1.55% increase in the cost of interest-bearing
deposits resulting from 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 first quarter of 2023.
The increase in the overall cost of interest-bearing liabilities in
the first quarter of 2024 relative to the same period of the prior
year is largely due to Federal Reserve Bank rate increases totaling
5.25% between March 2022 and July 2023. The significant increase in
short-term interest rates resulted in an inverted yield curve
whereby short-term rates exceed longer-term rates. The yield curve
has been inverted since July 2022; the longest period of inversion
in United States’ history. This record long period when short-term
rates exceeded long-term rates has compressed net interest margins
and impacted the banking industry broadly. As a result of the
inversion, our annualized net interest margin for the first quarter
of 2024 was 2.11% as compared to 2.57% 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, partially
offset by an increase in yields on the Company’s interest-earning
assets.
Net interest margin for the fourth quarter of 2023 was 2.12%.
The fourth quarter of 2023 had one additional day when compared to
the first quarter of 2024. The lesser day count of the first
quarter of 2024 negatively impacted our net interest margin by one
basis point.
The Company recorded a $776 thousand release of provision for
credit losses for the first quarter of 2024 compared to a release
of provision of $774 thousand for the first quarter of 2023. The
release of provision for credit losses during the first quarter of
2024 was primarily a result of changes in the composition and
volume of the loan portfolio, improved economic forecasts used in
the quantitative portion of the model and an assessment of
management’s considerations of qualitative factors combined with
the continued strong credit performance of our loan portfolio
segments.
Non-interest income increased $252 thousand during the first
quarter of 2024 compared to the first quarter of 2023. The increase
in non-interest income was due in part to non-recurring losses of
$202 thousand recognized on the sale of certain investment
securities during the first quarter of 2023, partially offset by
bank-owned life insurance income of $100 thousand recognized during
the prior period. As previously disclosed, the Company surrendered
all of its BOLI policies in July 2023. Excluding losses from the
non-recurring investment sale and BOLI income recorded during the
first quarter of 2023, as well as mark-to-market adjustments of
non-qualified deferred compensation plan assets, non-interest
income increased $115 thousand or 19.9%. The increase was primarily
due to gains recognized on the sale of certain SBA loan sales
totaling $133 thousand, swap fee income of $64 thousand, and
increases in insurance commission related revenue. The Company
expects to accelerate SBA loan sale revenue and our pipeline of
borrowers evaluating swaps continues to grow.
Non-interest expense increased $154 thousand or 2.0% during the
first quarter of 2024 compared to the first quarter of 2023. The
increase was primarily due to non-recurring expenses totaling $138
thousand incurred during the first quarter of 2024 in connection
with a strategic opportunity that was explored and ultimately did
not materialize (the “Non-Recurring Expense”). To date in 2024, the
Company hired four experienced business development professionals
who we expect to augment the Company’s loan, deposit and
non-interest income growth.
For the three months ended March 31, 2024, annualized
non-interest expense to average assets was 1.41% compared to 1.35%
for the three months ended March 31, 2023. The increase was
primarily due to lower average assets and higher non-interest
expense when comparing the two periods. Excluding the Non-Recurring
Expense of $138 thousand, adjusted annualized non-interest expense
to average assets was 1.38% (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.
For the three months ended March 31, 2024, the efficiency ratio
was 63.1% compared to 51.7% for the three months ended March 31,
2023. The increase was primarily due to an increase in non-interest
expense. Excluding the Non-Recurring Expense of $138 thousand, the
adjusted efficiency ratio was 62.0% (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.
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 the impact of unrealized losses in the Company’s bond
portfolio on the Bank’s regulatory capital ratios and
period-to-period operating performance, respectively. 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:
- The Adjusted Bank regulatory capital ratios in the hypothetical
scenario where the entire bond portfolio was sold at fair market
value and any losses realized.
- The Adjusted annualized non-interest expense to average assets
and adjusted efficiency ratio excluding the effects of the
Non-Recurring Expense.
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 for a reconciliation of these
non-GAAP measures to the most directly comparable GAAP measure.
About John Marshall Bancorp,
Inc.
John Marshall Bancorp, Inc. is the bank holding company for John
Marshall Bank. The Bank is headquartered in Reston, Virginia with
eight full-service branches located in Alexandria, Arlington,
Loudoun, Prince William, Reston, and Tysons, Virginia, as well as
Rockville, Maryland, and Washington, D.C. The Bank is dedicated to
providing exceptional value, personalized service and convenience
to local businesses and professionals in the Washington D.C. Metro
area. The Bank offers a comprehensive line of sophisticated banking
products and services that rival those of the largest banks along
with experienced staff to help achieve customers’ financial goals.
Dedicated Relationship Managers serve as direct points-of-contact,
providing subject matter expertise in a variety of niche industries
including Charter and Private Schools, Government Contractors,
Health Services, Nonprofits and Associations, Professional
Services, Property Management Companies and Title Companies. Learn
more at www.johnmarshallbank.com.
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 portfolio; deterioration of our asset quality; future
performance of our loan portfolio with respect to recently
originated loans; the level of prepayments on loans and
mortgage-backed securities; liquidity, interest rate and
operational risks associated with our business; changes in our
financial condition or results of operations that reduce capital;
our ability to maintain existing deposit relationships or attract
new deposit relationships; changes in consumer spending, borrowing
and savings habits; inflation and changes in interest rates that
may reduce our margins or reduce the fair value of financial
instruments; changes in the monetary and fiscal policies of the
U.S. Government, including policies of the U.S. Treasury and the
Board of Governors of the Federal Reserve System; additional risks
related to new lines of business, products, product enhancements or
services; increased competition with other financial institutions
and fintech companies; adverse changes in the securities markets;
changes in the financial condition or future prospects of issuers
of securities that we own; our ability to maintain an effective
risk management framework; changes in laws or government
regulations or policies affecting financial institutions, including
changes in regulatory structure and in regulatory fees and capital
requirements; compliance with legislative or regulatory
requirements; results of examination of us by our regulators,
including the possibility that our regulators may require us to
increase our allowance for credit losses or to write-down assets or
take similar actions; potential claims, damages, and fines related
to litigation or government actions; the effectiveness of our
internal controls over financial reporting and our ability to
remediate any future material weakness in our internal controls
over financial reporting; geopolitical conditions, including acts
or threats of terrorism and/or military conflicts, or actions taken
by the U.S. or other governments in response to acts or threats of
terrorism and/or military conflicts, negatively impacting business
and economic conditions in the U.S. and abroad; the effects of
weather-related or natural disasters, which may negatively affect
our operations and/or our loan portfolio and increase our cost of
conducting business; public health events (such as the COVID-19
pandemic), and of governmental and societal responses thereto;
technological risks and developments, and cyber threats, attacks,
or events; the additional requirements of being a public company;
changes in accounting policies and practices; our ability to
successfully capitalize on growth opportunities; our ability to
retain key employees; deteriorating economic conditions, either
nationally or in our market area, including higher unemployment and
lower real estate values; implications of our status as a smaller
reporting company and as an emerging growth company; and other
factors discussed in the Company’s reports (such as our Annual
Report on Form 10-K, Quarterly Reports on Form 10-Q and Current
Reports on Form 8-K) filed with the Securities and Exchange
Commission. These risks and uncertainties should be considered in
evaluating forward-looking statements and undue reliance should not
be placed on such statements. The Company does not undertake, and
specifically disclaims any obligation, to publicly release the
result of any revisions which may be made to any forward-looking
statements to reflect events or circumstances after the date of
such statements or to reflect the occurrence of anticipated or
unanticipated events. Annualized, pro forma, projected and
estimated numbers are used for illustrative purpose only, are not
forecasts and may not reflect actual results.
John Marshall Bancorp,
Inc.
Financial Highlights
(Unaudited)
(Dollar amounts in thousands,
except per share data)
At or For the Three Months
Ended
March 31,
2024
2023
Selected Balance Sheet Data
Cash and cash equivalents
$
153,016
$
103,359
Total investment securities
261,341
445,785
Loans, net of unearned income
1,825,931
1,771,272
Allowance for loan credit losses
18,671
21,619
Total assets
2,251,837
2,351,307
Non-interest bearing demand deposits
404,669
447,450
Interest bearing deposits
1,496,321
1,641,192
Total deposits
1,900,990
2,088,642
Federal Reserve Bank borrowings
77,000
- -
Shareholders' equity
234,550
220,823
Summary Results of Operations
Interest income
$
26,919
$
23,453
Interest expense
15,175
8,984
Net interest income
11,744
14,469
Provision for (recovery of) credit
losses
(776
)
(774
)
Net interest income after provision for
(recovery of) credit losses
12,520
15,243
Non-interest income
818
566
Non-interest expense
7,924
7,770
Income before income taxes
5,414
8,039
Net income
4,204
6,304
Per Share Data and Shares
Outstanding
Earnings per share - basic
$
0.30
$
0.45
Earnings per share - diluted
$
0.30
$
0.44
Book value per share
$
16.51
$
15.63
Weighted average common shares (basic)
14,130,986
14,067,047
Weighted average common shares
(diluted)
14,181,254
14,156,724
Common shares outstanding at end of
period
14,209,606
14,125,208
Performance Ratios
Return on average assets (annualized)
0.75
%
1.10
%
Return on average equity (annualized)
7.23
%
11.83
%
Net interest margin
2.11
%
2.57
%
Non-interest income as a percentage of
average assets (annualized)
0.15
%
0.10
%
Non-interest expense to average assets
(annualized)
1.41
%
1.35
%
Efficiency ratio
63.1
%
51.7
%
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
Allowance for loan credit losses to total
loans
1.02
%
1.22
%
Net charge-offs (recoveries) to average
loans (annualized)
0.00
%
0.00
%
Loans 30-89 days past due and accruing
interest
$
- -
$
- -
Non-accrual loans
- -
- -
Other real estate owned
- -
- -
Non-performing assets (1)
- -
- -
Capital Ratios (Bank Level)
Equity / assets
11.3
%
10.3
%
Total risk-based capital ratio
16.1
%
16.1
%
Tier 1 risk-based capital ratio
15.1
%
14.9
%
Common equity tier 1 ratio
15.1
%
14.9
%
Leverage ratio
11.8
%
11.5
%
Other Information
Number of full time equivalent
employees
132
142
# Full service branch offices
8
8
# Loan production or limited service
branch offices
- -
1
___________________________
(1)
Non-performing assets consist of
non-accrual loans, loans 90 days or more past due and still
accruing interest and other real estate owned.
John Marshall Bancorp,
Inc.
Consolidated Balance
Sheets
(Dollar amounts in thousands,
except per share data)
% Change
March 31,
December 31,
March 31,
Last Three
Year Over
2024
2023
2023
Months
Year
Assets
(Unaudited)
*
(Unaudited)
Cash and due from banks
$
5,696
$
7,424
$
8,012
(23.3
)%
(28.9
)%
Interest-bearing deposits in banks
147,320
91,581
95,347
60.9
%
54.5
%
Securities available-for-sale, at fair
value
158,757
169,993
340,159
(6.6
)%
(53.3
)%
Securities held-to-maturity at amortized
cost, fair value of $77,995, $79,532, and $81,966 at 3/31/2024,
12/31/2023, and 3/31/2023, respectively.
94,662
95,505
98,507
(0.9
)%
(3.9
)%
Restricted securities, at cost
4,962
5,012
4,529
(1.0
)%
9.6
%
Equity securities, at fair value
2,960
2,792
2,590
6.0
%
14.3
%
Loans, net of unearned income
1,825,931
1,859,967
1,771,272
(1.8
)%
3.1
%
Allowance for credit losses
(18,671
)
(19,543
)
(21,619
)
(4.5
)%
(13.6
)%
Net loans
1,807,260
1,840,424
1,749,653
(1.8
)%
3.3
%
Bank premises and equipment, net
1,244
1,281
1,451
(2.9
)%
(14.3
)%
Accrued interest receivable
6,410
6,110
5,471
4.9
%
17.2
%
Bank owned life insurance
- -
- -
21,270
N/M
N/M
Right of use assets
3,872
4,176
4,767
(7.3
)%
(18.8
)%
Other assets
18,694
18,251
19,551
2.4
%
(4.4
)%
Total assets
$
2,251,837
$
2,242,549
$
2,351,307
0.4
%
(4.2
)%
Liabilities and Shareholders'
Equity
Liabilities
Deposits:
Non-interest bearing demand deposits
$
404,669
$
411,374
$
447,450
(1.6
)%
(9.6
)%
Interest-bearing demand deposits
644,580
607,971
677,834
6.0
%
(4.9
)%
Savings deposits
50,664
52,061
81,150
(2.7
)%
(37.6
)%
Time deposits
801,077
835,194
882,208
(4.1
)%
(9.2
)%
Total deposits
1,900,990
1,906,600
2,088,642
(0.3
)%
(9.0
)%
Federal funds purchased
- -
10,000
- -
N/M
N/M
Federal Reserve Bank borrowings
77,000
54,000
- -
42.6
%
N/M
Subordinated debt, net
24,729
24,708
24,645
0.1
%
0.3
%
Accrued interest payable
2,949
4,559
972
(35.3
)%
203.4
%
Lease liabilities
4,141
4,446
5,039
(6.9
)%
(17.8
)%
Other liabilities
7,478
8,322
11,186
(10.1
)%
(33.1
)%
Total liabilities
2,017,287
2,012,635
2,130,484
0.2
%
(5.3
)%
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,
14,209,606 at 3/31/2024 including 45,929 unvested shares, issued
and outstanding, 14,148,533 at 12/31/2023 including 47,318 unvested
shares, and 14,125,208 at 3/31/2023 including 48,401 unvested
shares
142
141
141
0.7
%
0.7
%
Additional paid-in capital
96,469
95,636
95,235
0.9
%
1.3
%
Retained earnings
150,592
146,388
150,642
2.9
%
(0.0
)%
Accumulated other comprehensive loss
(12,653
)
(12,251
)
(25,195
)
3.3
%
(49.8
)%
Total shareholders' equity
234,550
229,914
220,823
2.0
%
6.2
%
Total liabilities and shareholders'
equity
$
2,251,837
$
2,242,549
$
2,351,307
0.4
%
(4.2
)%
* 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
March 31
2024
2023
% Change
(Unaudited)
(Unaudited)
Interest and Dividend Income
Interest and fees on loans
$
23,623
$
20,425
15.7
%
Interest on investment securities,
taxable
1,269
2,251
(43.6
)%
Interest on investment securities,
tax-exempt
9
19
(52.6
)%
Dividends
82
75
9.3
%
Interest on deposits in other banks
1,936
683
N/M
Total interest and dividend income
26,919
23,453
14.8
%
Interest Expense
Deposits
13,931
8,559
62.8
%
Federal funds purchased
2
9
(77.8
)%
Federal Home Loan Bank advances
- -
67
(100.0
)%
Federal Reserve Bank borrowings
893
- -
N/M
Subordinated debt
349
349
--
%
Total interest expense
15,175
8,984
68.9
%
Net interest income
11,744
14,469
(18.8
)%
Provision for (recovery of) Credit
Losses
(776
)
(774
)
0.3
%
Net interest income after provision for
(recovery of) credit losses
12,520
15,243
(17.9
)%
Non-interest Income
Service charges on deposit accounts
88
72
22.2
%
Bank owned life insurance
- -
100
N/M
Other service charges and fees
149
203
(26.6
)%
Losses on sale of available-for-sale
securities
- -
(202
)
N/M
Insurance commissions
252
206
22.3
%
Gain on sale of government guaranteed
loans
133
- -
N/M
Non-qualified deferred compensation plan
asset gains, net
124
89
39.3
%
Other income
72
98
(26.5
)%
Total non-interest income
818
566
44.5
%
Non-interest Expenses
Salaries and employee benefits
4,810
4,912
(2.1
)%
Occupancy expense of premises
451
470
(4.0
)%
Furniture and equipment expenses
297
296
0.3
%
Other expenses
2,366
2,092
13.1
%
Total non-interest expenses
7,924
7,770
2.0
%
Income before income taxes
5,414
8,039
(32.7
)%
Income Tax Expense
1,210
1,735
(30.3
)%
Net income
$
4,204
$
6,304
(33.3
)%
Earnings Per Share
Basic
$
0.30
$
0.45
(33.3
)%
Diluted
$
0.30
$
0.44
(31.8
)%
John Marshall Bancorp,
Inc.
Historical Trends - Quarterly
Financial Data (Unaudited)
(Dollar amounts in thousands,
except per share data)
2024
2023
March 31
December 31
September 30
June 30
March 31
Profitability for the Quarter:
Interest income
$
26,919
$
26,598
$
26,263
$
24,455
$
23,453
Interest expense
15,175
14,571
14,284
12,446
8,984
Net interest income
11,744
12,027
11,979
12,009
14,469
Provision for (recovery of) credit
losses
(776
)
(781
)
(829
)
(868
)
(774
)
Non-interest income (loss)
818
624
(16,815
)
685
566
Non-interest expenses
7,924
7,554
7,660
7,831
7,770
Income (loss) before income taxes
5,414
5,878
(11,667
)
5,731
8,039
Income tax expense (benefit)
1,210
1,376
(1,530
)
1,241
1,735
Net income (loss)
$
4,204
$
4,502
$
(10,137
)
$
4,490
$
6,304
Financial Performance:
Return on average assets (annualized)
0.75
%
0.78
%
(1.73
)%
0.77
%
1.10
%
Return on average equity (annualized)
7.23
%
7.91
%
(18.24
)%
8.13
%
11.83
%
Net interest margin
2.11
%
2.12
%
2.08
%
2.10
%
2.57
%
Non-interest income (loss) as a percentage
of average assets (annualized)
0.15
%
0.11
%
(2.86
)%
0.12
%
0.10
%
Non-interest expense to average assets
(annualized)
1.41
%
1.31
%
1.30
%
1.34
%
1.35
%
Efficiency ratio
63.1
%
59.7
%
(158.4
)%
61.7
%
51.7
%
Per Share Data:
Earnings (loss) per share - basic
$
0.30
$
0.32
$
(0.72
)
$
0.32
$
0.45
Earnings (loss) per share - diluted
$
0.30
$
0.32
$
(0.72
)
$
0.32
$
0.44
Book value per share
$
16.51
$
16.25
$
15.61
$
15.50
$
15.63
Dividends declared per share
$
- -
$
- -
$
- -
$
0.22
$
- -
Weighted average common shares (basic)
14,130,986
14,082,762
14,080,026
14,077,658
14,067,047
Weighted average common shares
(diluted)
14,181,254
14,145,607
14,080,026
14,143,253
14,156,724
Common shares outstanding at end of
period
14,209,606
14,148,533
14,126,084
14,126,138
14,125,208
Non-interest Income:
Service charges on deposit accounts
$
88
$
91
$
85
$
82
$
72
Bank owned life insurance
- -
- -
23
101
100
Other service charges and fees
149
161
160
314
203
Losses on sale of available-for-sale
securities
- -
- -
(17,114
)
- -
(202
)
Insurance commissions
252
76
54
50
206
Gain on sale of government guaranteed
loans
133
81
27
23
- -
Non-qualified deferred compensation plan
asset gains (losses), net
124
205
(60
)
83
89
Other income
72
10
10
32
98
Total non-interest income (loss)
$
818
$
624
$
(16,815
)
$
685
$
566
Non-interest Expenses:
Salaries and employee benefits
$
4,810
$
4,507
$
5,052
$
4,965
$
4,912
Occupancy expense of premises
451
448
445
448
470
Furniture and equipment expenses
297
296
282
304
296
Other expenses
2,366
2,303
1,881
2,114
2,092
Total non-interest expenses
$
7,924
$
7,554
$
7,660
$
7,831
$
7,770
Balance Sheets at Quarter End:
Total loans, net of unearned income
$
1,825,931
$
1,859,967
$
1,820,132
$
1,769,801
$
1,771,272
Allowance for loan credit losses
(18,671
)
(19,543
)
(20,036
)
(20,629
)
(21,619
)
Investment securities
261,341
273,302
272,881
429,954
445,785
Interest-earning assets
2,234,592
2,224,850
2,278,027
2,315,368
2,312,404
Total assets
2,251,837
2,242,549
2,298,202
2,364,250
2,351,307
Total deposits
1,900,990
1,906,600
1,981,623
2,046,309
2,088,642
Total interest-bearing liabilities
1,598,050
1,583,934
1,622,430
1,691,044
1,665,837
Total shareholders' equity
234,550
229,914
220,567
218,970
220,823
Quarterly Average Balance
Sheets:
Total loans, net of unearned income
$
1,835,966
$
1,837,855
$
1,790,720
$
1,767,831
$
1,772,922
Investment securities
270,760
273,264
310,407
441,778
463,254
Interest-earning assets
2,247,620
2,260,356
2,301,642
2,305,050
2,295,677
Total assets
2,264,544
2,280,060
2,331,403
2,344,712
2,334,695
Total deposits
1,914,173
1,956,039
2,012,934
2,051,702
2,066,139
Total interest-bearing liabilities
1,600,197
1,587,179
1,660,980
1,667,597
1,621,131
Total shareholders' equity
233,952
225,718
220,473
221,608
220,282
Financial Measures:
Average equity to average assets
10.3
%
9.9
%
9.5
%
9.5
%
9.4
%
Investment securities to earning
assets
11.7
%
12.3
%
12.0
%
18.6
%
19.3
%
Loans to earning assets
81.7
%
83.6
%
79.9
%
76.4
%
76.6
%
Loans to assets
81.1
%
82.9
%
79.2
%
74.9
%
75.3
%
Loans to deposits
96.1
%
97.6
%
91.9
%
86.5
%
84.8
%
Capital Ratios (Bank Level):
Equity / assets
11.3
%
11.1
%
10.6
%
10.2
%
10.3
%
Total risk-based capital ratio
16.1
%
15.7
%
15.7
%
16.1
%
16.1
%
Tier 1 risk-based capital ratio
15.1
%
14.7
%
14.6
%
15.0
%
14.9
%
Common equity tier 1 ratio
15.1
%
14.7
%
14.6
%
15.0
%
14.9
%
Leverage ratio
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
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
Commercial business loans
$
42,779
2.3
%
$
45,073
2.4
%
$
37,793
2.1
%
$
40,156
2.3
%
$
41,204
2.3
%
Commercial PPP loans
129
0.0
%
131
0.0
%
132
0.0
%
133
0.0
%
135
0.0
%
Commercial owner-occupied real estate
loans
356,335
19.6
%
360,102
19.4
%
363,017
20.0
%
360,859
20.4
%
363,495
20.6
%
Total business loans
399,243
21.9
%
405,306
21.8
%
400,942
22.1
%
401,148
22.7
%
404,834
22.9
%
Investor real estate loans
692,418
38.0
%
689,556
37.1
%
683,686
37.6
%
654,623
37.0
%
660,740
37.4
%
Construction & development loans
151,476
8.3
%
180,922
9.8
%
179,570
9.9
%
179,656
10.2
%
179,606
10.2
%
Multi-family loans
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
938,613
51.5
%
966,936
52.1
%
949,622
52.3
%
920,340
52.1
%
929,016
52.6
%
Residential mortgage loans
482,254
26.5
%
482,182
26.1
%
464,509
25.7
%
443,305
25.2
%
433,076
24.5
%
Consumer loans
772
0.0
%
560
0.0
%
467
0.0
%
646
0.0
%
324
0.0
%
Total loans
$
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
(18,671
)
(19,543
)
(20,036
)
(20,629
)
(21,619
)
Net deferred loan costs (fees)
5,049
4,983
4,592
4,362
4,022
Net loans
$
1,807,260
$
1,840,424
$
1,800,096
$
1,749,172
$
1,749,653
2024
2023
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
Non-interest bearing demand deposits
$
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)
318,445
16.8
%
297,321
15.6
%
345,522
17.4
%
311,225
15.2
%
284,872
13.7
%
Money market accounts(1)
326,135
17.1
%
310,650
16.3
%
330,297
16.6
%
341,413
16.7
%
392,962
18.8
%
Savings accounts
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
355,766
18.7
%
357,768
18.7
%
364,805
18.4
%
376,899
18.4
%
338,824
16.2
%
Less than $250,000
99,694
5.2
%
101,567
5.3
%
103,600
5.2
%
105,956
5.2
%
94,429
4.5
%
QwickRate® certificates of deposit
5,117
0.3
%
9,686
0.5
%
11,526
0.6
%
12,772
0.6
%
16,952
0.8
%
IntraFi® certificates of deposit
34,443
1.8
%
45,748
2.4
%
41,659
2.1
%
49,729
2.4
%
53,178
2.5
%
Brokered deposits
306,057
16.1
%
320,425
16.8
%
288,926
14.6
%
346,371
16.9
%
378,825
18.2
%
Total deposits
$
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
%
$
10,000
11.3
%
$
- -
0.0
%
$
- -
0.0
%
$
- -
0.0
%
Federal Reserve Bank borrowings
77,000
75.7
%
54,000
60.9
%
54,000
68.6
%
54,000
68.6
%
- -
0.0
%
Subordinated debt, net
24,729
24.3
%
24,708
27.8
%
24,687
31.4
%
24,666
31.4
%
24,645
100.0
%
Total borrowings
$
101,729
100.0
%
$
88,708
100.0
%
$
78,687
100.0
%
$
78,666
100.0
%
$
24,645
100.0
%
Total deposits and borrowings
$
2,002,719
$
1,995,308
$
2,060,310
$
2,124,975
$
2,113,287
Core customer funding sources (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)
388,174
19.6
%
394,111
20.0
%
354,452
17.4
%
413,143
19.7
%
395,777
18.9
%
Total funding sources
$
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)
Three Months Ended March 31,
2024
Three Months Ended March 31,
2023
Average Balance
Interest Income /
Expense
Average Rate
Average Balance
Interest Income /
Expense
Average Rate
Assets:
Securities:
Taxable
$
269,380
$
1,351
2.02
%
$
459,817
$
2,326
2.05
%
Tax-exempt(1)
1,380
11
3.21
%
3,437
24
2.83
%
Total securities
$
270,760
$
1,362
2.02
%
$
463,254
$
2,350
2.06
%
Loans, net of unearned income(2):
Taxable
1,813,528
23,458
5.20
%
1,744,347
20,194
4.70
%
Tax-exempt(1)
22,438
209
3.75
%
28,575
292
4.14
%
Total loans, net of unearned income
$
1,835,966
$
23,667
5.18
%
$
1,772,922
$
20,486
4.69
%
Interest-bearing deposits in other
banks
$
140,894
$
1,936
5.53
%
$
59,501
$
683
4.66
%
Total interest-earning assets
$
2,247,620
$
26,965
4.83
%
$
2,295,677
$
23,519
4.15
%
Total non-interest earning assets
16,924
39,018
Total assets
$
2,264,544
$
2,334,695
Liabilities & Shareholders’
Equity:
Interest-bearing deposits
NOW accounts
$
313,478
$
2,199
2.82
%
$
258,492
$
762
1.20
%
Money market accounts
324,753
2,576
3.19
%
429,073
2,475
2.34
%
Savings accounts
53,064
175
1.33
%
87,640
245
1.13
%
Time deposits
808,845
8,981
4.47
%
814,472
5,077
2.53
%
Total interest-bearing deposits
$
1,500,140
$
13,931
3.73
%
$
1,589,677
$
8,559
2.18
%
Federal funds purchased
110
2
7.31
%
789
9
4.63
%
Subordinated debt, net
24,716
349
5.68
%
24,632
349
5.75
%
Federal Reserve Bank borrowings
75,231
893
4.77
%
—
—
NM
Other borrowed funds
—
—
NM
6,033
67
4.50
%
Total interest-bearing liabilities
$
1,600,197
$
15,175
3.81
%
$
1,621,131
$
8,984
2.25
%
Demand deposits
414,033
476,462
Other liabilities
16,362
16,820
Total liabilities
$
2,030,592
$
2,114,413
Shareholders’ equity
$
233,952
$
220,282
Total liabilities and shareholders’
equity
$
2,264,544
$
2,334,695
Tax-equivalent net interest income and
spread
$
11,790
1.02
%
$
14,535
1.90
%
Less: tax-equivalent adjustment
46
66
Net interest income
$
11,744
$
14,469
Tax-equivalent interest income/earnings
assets
4.83
%
4.15
%
Interest expense/earning assets
2.72
%
1.58
%
Net interest margin(3)
2.11
%
2.57
%
____________________________
(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 $46 thousand and $66 thousand for the
three months ended March 31, 2024 and March 31, 2023,
respectively.
(2)
The Company did not have any loans on
non-accrual as of March 31, 2024 or March 31, 2023.
(3)
The net interest margin has been
calculated on a tax-equivalent basis.
John Marshall Bancorp,
Inc.
Reconciliation of Certain
Non-GAAP Financial Measures (unaudited)
(Dollar amounts in
thousands)
As of
March 31, 2024
December 31, 2023
March 31, 2023
Regulatory Ratios (Bank)
Total risk-based capital (GAAP)
$
286,038
$
282,082
$
290,202
Less: Unrealized losses on
available-for-sale securities, net of tax benefit (1)
12,781
12,401
25,414
Less: Unrealized losses on
held-to-maturity securities, net of tax benefit (1)
13,040
12,469
13,067
Adjusted total risk-based capital,
excluding unrealized losses on available-for-sale and
held-to-maturity securities, net of tax benefit (Non-GAAP)
$
260,217
$
257,212
$
251,721
Tier 1 capital (GAAP)
$
267,795
$
263,637
$
269,281
Less: Unrealized losses on
available-for-sale securities, net of tax benefit (1)
12,781
12,401
25,414
Less: Unrealized losses on
held-to-maturity securities, net of tax benefit (1)
13,040
12,469
13,067
Adjusted tier 1 capital, excluding
unrealized losses on available-for-sale and held-to-maturity
securities, net of tax benefit (Non-GAAP)
$
241,974
$
238,767
$
230,800
Risk weighted assets (GAAP)
$
1,774,474
$
1,794,769
$
1,805,238
Less: Risk weighted available-for-sale
securities
23,356
24,184
58,588
Less: Risk weighted held-to-maturity
securities
16,934
17,079
17,611
Adjusted risk weighted assets, excluding
available-for-sale and held-to-maturity securities (Non-GAAP)
$
1,734,184
$
1,753,506
$
1,729,039
Total average assets for leverage ratio
(GAAP)
$
2,262,501
$
2,274,911
$
2,333,620
Less: Average available-for-sale
securities
167,740
169,789
356,708
Less: Average held-to-maturity
securities
95,168
95,994
99,011
Adjusted total average assets for leverage
ratio, excluding available-for-sale and held-to-maturity securities
(Non-GAAP)
$
1,999,593
$
2,009,128
$
1,877,901
Total risk-based capital ratio (2)
Total risk-based capital ratio (GAAP)
16.1
%
15.7
%
16.1
%
Adjusted total risk-based capital ratio
(Non-GAAP) (3)
15.0
%
14.7
%
14.6
%
Tier 1 capital ratio (4)
Tier 1 risk-based capital ratio (GAAP)
15.1
%
14.7
%
14.9
%
Adjusted tier 1 risk-based capital ratio
(Non-GAAP) (5)
14.0
%
13.5
%
13.3
%
Common equity tier 1 ratio (6)
Common equity tier 1 ratio (GAAP)
15.1
%
14.7
%
14.9
%
Adjusted common equity tier 1 ratio
(Non-GAAP) (7)
14.0
%
13.5
%
13.3
%
Leverage ratio (8)
Leverage ratio (GAAP)
11.8
%
11.6
%
11.5
%
Adjusted leverage ratio (Non-GAAP) (9)
12.1
%
11.9
%
12.3
%
For the Three Months
Ended
March 31, 2024
Non-interest expense (GAAP)
$
7,924
Less: non-recurring expenses
138
Adjusted non-interest expense
(Non-GAAP)
$
7,786
Non-interest expense to average assets
(annualized) (GAAP)
1.41
%
Adjusted non-interest expense to average
assets (annualized) (Non-GAAP) (10)
1.38
%
Efficiency ratio (GAAP)
63.1
%
Adjusted efficiency ratio (Non-GAAP)
(11)
62.0
%
___________________________
(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.
(10)
The adjusted non-interest expense to
average assets is calculated by dividing the annualized adjusted
non-interest expense by average assets.
(11)
The adjusted efficiency ratio is
calculated by dividing adjusted non-interest expense by the sum of
non-interest income and net interest income for each period
presented.
Category: Earnings
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240425097034/en/
Christopher W. Bergstrom (703) 584-0840 Kent D. Carstater (703)
289-5922
John Marshall Bancorp (NASDAQ:JMSB)
Historical Stock Chart
From Oct 2024 to Nov 2024
John Marshall Bancorp (NASDAQ:JMSB)
Historical Stock Chart
From Nov 2023 to Nov 2024
