Exhibit 99.1
For Immediate Release
October 19, 2022
John Marshall Bancorp, Inc. Reports 19.0% Increase in Net Income
Strong Core Loan and Deposit Growth and Excellent Asset Quality
Reston, VA – John Marshall Bancorp, Inc. (Nasdaq: JMSB) (the “Company”), parent company of John Marshall Bank (the “Bank”), today reported net income of $8.0 million ($0.57 per diluted common share) for the quarter ended September 30, 2022. The current quarter’s result compares favorably to net income of $6.8 million ($0.48 per diluted common share) for the third quarter of 2021.
Third Quarter Highlights
| ● | Fifteenth Consecutive Quarter of Record Earnings – The Company reported record net income of $8.0 million for the third quarter of 2022, a $1.2 million or 19.0% increase over the $6.8 million reported for the third quarter of 2021. Earnings per diluted share for the three months ended September 30, 2022 were $0.57, an 18.8% increase over the $0.48 reported for the three months ended September 30, 2021. |
| ● | Strong Returns – Annualized Return on Average Assets (“ROAA”) was 1.38% and annualized Return on Average Equity (“ROAE”) was 15.07% for the three months ended September 30, 2022. ROAA and ROAE were 1.30% and 13.35%, respectively, for the three months ended September 30, 2021. |
| ● | Robust Loan Production – Excluding Paycheck Protection Program (“PPP”) loans, gross loans net of unearned income (“Core Loans”) grew $196.0 million or 12.8% from September 30, 2021 to September 30, 2022. The Company remains highly selective when underwriting potential borrowers. |
| ● | Increased Core Deposits – The Company continued to grow core deposits. Non-interest bearing deposits grew $71.3 million or 15.4% from September 30, 2021 to September 30, 2022. Non-interest bearing deposits grew $22.9 million or 17.7% annualized from June 30, 2022 to September 30, 2022. The non-interest bearing deposit growth rate exceeded that of total deposits, thereby increasing the ratio of non-interest bearing deposit to total deposits from 25.2% as of September 30, 2021 to 25.9% as of September 30, 2022. |
| ● | Operating Leverage – Revenues (net interest income plus non-interest income) grew 10.0% for the three months ended September 30, 2022 relative to the three months ended September 30, 2021. Over the same period, overhead grew only 4.4%. The Company remains vigilant on identifying more cost effective means to achieve future growth. The efficiency ratio for the third quarter of 2022 was 43.9% compared to 46.2% for the third quarter of 2021. The ratio of annualized non-interest expense to average assets was 1.36% for the third quarter of 2022 compared to 1.46% for the third quarter of 2021. |
| ● | No Non-performing Assets; No Loans More Than 15 Days Past Due – For the twelfth consecutive quarter, the Company had no nonperforming loans, no other real estate owned, and no loans 30 days or more past due. As of September 30, 2022, there were no loans more than 15 days past due. There were no charge offs during the quarter. The Company believes its allowance for loan losses is appropriate for the inherent risks and uncertainties associated with the portfolio. |
Chris Bergstrom, President and Chief Executive Officer, on third quarter results, “We are pleased to announce that third quarter results were among the best in the Company’s history. We benefited from another quarter of deposit and loan growth. Growth, operating leverage and exceptional credit quality enabled us to report our 15th consecutive quarter of record earnings. We closed the quarter with strong capital and liquidity levels and well positioned to prudently pursue continued growth.”
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Balance Sheet and Credit Quality
Total assets were $2.31 billion at September 30, 2022, $2.32 billion at June 30, 2022 and $2.10 billion at September 30, 2021. Total assets during the most recent quarter were impacted by the Company’s redemption of its subordinated debt issuance as described further below. Asset growth from September 30, 2021 to September 30, 2022 was $210.0 million or 10.0%.
Total loans, net of unearned income, increased by 7.7% to $1.73 billion at September 30, 2022, compared to $1.60 billion at September 30, 2021. Core Loans as of September 30, 2022 grew 12.8% to $1.73 billion as compared to $1.53 billion at September 30, 2021. The year-over-year increase in the loan portfolio was primarily attributable to growth in the investor real estate, residential mortgage, commercial owner-occupied real estate, and multi-family loan portfolios.
Total loans, net of unearned income, increased $32.5 million during the quarter ended September 30, 2022 or 7.6% annualized from $1.69 billion at June 30, 2022. Core Loans increased $35.5 million during the quarter ended September 30, 2022 or 8.3% annualized from June 30, 2022. The increase in loans was primarily attributable to growth in the investor real estate, residential mortgage, and construction and land development loan portfolios.
The Company’s portfolio of investments in fixed income securities was $467.1 million at September 30, 2022, $467.4 million at June 30, 2022, and $342.1 million at September 30, 2021. All but $13.7 million of the fixed income portfolio is backed by the explicit or implicit guarantees of the United States Government or one of its agencies.
Total deposits were $2.06 billion at September 30, 2022, $2.04 billion at June 30, 2022, and $1.84 billion at September 30, 2021. Deposit growth was 12.3% during the past twelve months, as non-interest bearing demand deposits grew 15.4%, interest-bearing demand deposits grew 11.8%, time deposits grew 11.1%, and saving deposits grew 8.5%.
Total borrowings, defined as Federal Home Loan Bank advances and subordinated debt, decreased by 50.4% or $25.0 million to $24.6 million at September 30, 2022 compared to $49.6 million at June 30, 2022. The Company completed a private placement of a $25.0 million fixed-to-floating 5.25% subordinated note on June 15, 2022 (“2022 note”). On July 15, 2022, the earliest available call date, the Company utilized the proceeds from the 2022 note issuance to redeem its $25.0 million fixed-to-floating 5.75% subordinated notes that were issued on July 6, 2017 (“2017 notes”), which was the driver of the quarter-over-quarter decrease.
Shareholders’ equity remained flat at $202.2 million at September 30, 2022 when compared to September 30, 2021, as the increases in retained earnings and additional paid-in capital were offset by the increase in the unrealized loss on our available-for-sale investment portfolio. Book value per share was $14.37 as of September 30, 2022 compared to $14.82 as of September 30, 2021. The year-over-year change in book value per share was primarily due to increased unrealized losses on our available-for-sale investment portfolio, increased share count from shareholder option exercises and restricted share award issuances, and cash dividends paid, partially offset by the Company’s earnings over the previous twelve months. The increase in unrealized losses on our available-for-sale investment portfolio was due to market value changes as a result of rising interest rates. The Bank’s capital ratios remain well above regulatory thresholds for well-capitalized banks. As of September 30, 2022, the Bank’s total risk-based capital ratio was 15.4%, compared to 15.2% at September 30, 2021.
The Company recorded no net charge-offs during the third quarter of 2022, the second quarter of 2022, and the third quarter of 2021. As of September 30, 2022, the Company had no non-accrual loans, no loans more than 15 days past due and no other real estate owned assets.
At September 30, 2022, the allowance for loan losses was $20.0 million or 1.16% of outstanding loans, net of unearned income, compared to $20.0 million or 1.18% of outstanding loans, net of unearned income, at June 30, 2022. The decrease in the allowance as a percentage of outstanding loans, net of unearned income, was primarily due to changes in the loan portfolio’s composition as well as net changes in qualitative adjustments.
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Income Statement Review
Quarterly Results
Net income for the third quarter of 2022 increased $1.2 million or 19.0% to $8.0 million compared to $6.8 million for the third quarter of 2021. Net income increased $163 thousand or 2.1% compared to $7.9 million for the second quarter of 2022.
Net interest income for the third quarter of 2022 increased $1.5 million or 9.4% compared to the third quarter of 2021, driven primarily by growth in the Company’s loan and investment portfolios. The yield on interest earning assets was 3.71% for the third quarter of 2022 compared to 3.52% for the same period in 2021. The increase in yield on interest earning assets was primarily due to higher yields on the Company’s loan and investment portfolios as a result of increases in interest rates during the first nine months of 2022. The cost of interest-bearing liabilities was 0.90% for the third quarter of 2022 compared to 0.54% for the same quarter of the prior year. The increase in the cost of interest-bearing liabilities was primarily due to a 0.36% increase in the cost of interest-bearing deposits as a result of the repricing of the Company’s time deposits coupled with an increase in rates offered on NOW and money market deposit accounts during the first nine months of 2022. The annualized net interest margin for the third quarter of 2022 was 3.10% as compared to 3.15% for the same quarter of the prior year. The decrease in net interest margin was primarily due to the increase in cost of interest-bearing deposits, which was partially offset by increases in yields on the Company’s loan and investment portfolios.
The Company did not record a provision for loan losses for the third quarter of 2022, compared to a $325 thousand provision for the third quarter of 2021. The decrease in the provision for loan losses as compared to the same period in 2021 primarily reflects changes in the Company’s evaluation of environmental factors impacting the Company’s loan portfolio during 2022. During 2021, the environmental or qualitative factor allocations within the allowance for loan losses were adjusted to account for the risks to certain industry subgroups and portfolio segments within our portfolio as a result of the continuing COVID-19 pandemic. The decrease in the provision for loan losses primarily reflects an estimated decrease in uncertainty as it relates to the estimated impact of the COVID-19 pandemic on the Company’s loan portfolio and the broader economy.
Non-interest income increased $125 thousand or 38.5% during the third quarter of 2022 compared to the third quarter of 2021. The increase in non-interest income was primarily due to a $153 thousand increase in bank owned life insurance (“BOLI”) income as a result of a benefit claim realized. In addition, we realized increases in insurance commissions, service charges and fees on deposit accounts, and interchange and other fee income. The increase was partially offset by mark-to-market adjustments of $(93) thousand resulting from a reduction in value of investments related to the Company’s nonqualified deferred compensation plan.
Non-interest expense increased $335 thousand or 4.4% for the three months ended September 30, 2022 compared to the three months ended September 30, 2021. The increase in non-interest expense was primarily due to increases in data processing fees, salaries and employee benefits, and franchise tax expense. The increase in data processing fees was primarily due to investments in technology solutions supporting our operations. The increase in salaries and employee benefits were driven by an increase in accrued incentive compensation tied to the Company’s performance that was offset in part by lower employee insurance costs as well as lower accruals related to deferred compensation. The increase in state franchise taxes was due to an increase in the Bank’s equity as that is the basis the Commonwealth of Virginia uses to assess taxes on banking institutions. The increase in non-interest expense was partially offset by decreases in furniture and equipment expense and occupancy expense of premises. The decrease in furniture and fixture expense was due to lower depreciation expense on fixed assets. The decrease in occupancy expense of premises was due to a decrease in office rent as a result of the renegotiation of certain leases.
For the three months ended September 30, 2022, annualized non-interest expense to average assets was 1.36% compared to 1.46% for the three months ended September 30, 2021. The decrease was primarily due to lower occupancy expense and furniture and equipment expense, coupled with continued cost consciousness.
For the three months ended September 30, 2022, the annualized efficiency ratio was 43.9% compared to 46.2% for the three months ended September 30, 2021. The decrease was primarily due to increases in net interest income and non-interest income outpacing the modest increase in non-interest expense.
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Year-to-Date Results
Net income for the nine months ended September 30, 2022 increased $5.7 million or 31.7% to $23.6 million compared to $17.9 million for the nine months ended September 30, 2021. The results for the nine months ended September 30, 2022 reflect a combination of the impact of an increase in net interest income, a decrease in provision for loan loss expense, and a decrease in non-interest expense, which were partially offset by a decrease in non-interest income.
Net interest income for the nine months ended September 30, 2022 increased $4.0 million or 8.1% compared to the nine months ended September 30, 2021 and was driven primarily by growth in the Company’s loan and investment portfolios. The yield on interest earning assets was 3.65% for the nine months ended September 30, 2022 compared to 3.74% for the same period in 2021. The decrease in yield on interest earning assets was primarily due to a lower yield on the Company’s commercial real estate loan portfolio. The cost of interest-bearing liabilities was 0.67% for the nine months ended September 30, 2022 compared to 0.63% for the same period of the prior year. The increase in the cost of interest-bearing liabilities was primarily due to higher interest expense on subordinated debt as a result of carrying the 2017 notes and the 2022 note from June 15, 2022 until July 15, 2022, and increases in the cost of interest-bearing deposits as a result of an increase in rates offered on NOW and money market deposit accounts during the first nine months of 2022. The annualized net interest margin for the nine months ended September 30, 2022 was 3.19% as compared to 3.30% for the same quarter of the prior year. The decrease in net interest margin was primarily due to increases in the cost of interest-bearing deposits and subordinated debt coupled with a decrease in yield on the Company’s loan portfolio. The decrease in yield on the Company’s loan portfolio was primarily due to a modest decrease in the weighted average yield of commercial real estate loans originated subsequent to September 30, 2021.
The Company did not record a provision for loan losses for the nine months ended September 30, 2022, compared to a $2.8 million provision for the nine months ended September 30, 2021. The decrease in the provision for loan losses as compared to the same period in 2021 primarily reflects changes in the Company’s evaluation of environmental factors impacting the Company’s loan portfolio during 2022. During 2021, the environmental or qualitative factor allocations within the allowance for loan losses were adjusted to account for the risks to certain industry subgroups and portfolio segments within our portfolio as a result of the continuing COVID-19 pandemic. The decrease in the provision for loan losses primarily reflects an estimated decrease in uncertainty as it relates to the estimated impact of the COVID-19 pandemic on the Company’s loan portfolio and the broader economy.
Non-interest income decreased $233 thousand or 19.3% during the nine months ended September 30, 2022 compared to the nine months ended September 30, 2021. The decrease in non-interest income was primarily due to mark-to-market adjustments of $(583) thousand resulting from a reduction in value of investments related to the Company’s nonqualified deferred compensation plan. The decrease in non-interest income was partially offset by a non-recurring BOLI related benefit claim realized and increases in insurance commissions and interchange and other fee income due to higher production and increased customer activity, respectively. During the nine months ended September 30, 2021, the Company also realized a $10 thousand gain on a called security. Excluding the impacts of the mark-to-market adjustments, gain on the called security, and BOLI related benefit claim, non-interest income increased $203 thousand or 18.3%.
Non-interest expense decreased $158 thousand or 0.6% during the nine months ended September 30, 2022 compared to the nine months ended September 30, 2021. The decrease in non-interest expense was primarily due to non-recurring legal and professional fees incurred in 2021, as well as decreases in marketing expense and FDIC insurance fees. The decrease in marketing expense was primarily due to lower marketing vendor related expenses. The decrease in FDIC insurance fees was primarily due to lower insurance premiums. These decreases were partially offset by increases in state franchise taxes as a result of an increase in the Bank’s equity year-over-year and data processing fees due to new investments in technology solutions to support our operations.
For the nine months ended September 30, 2022, annualized non-interest expense to average assets was 1.45% compared to 1.63% for the nine months ended September 30, 2021. The decrease was primarily due to non-recurring legal and professional fees incurred in 2021 as well as decreases in marketing expense and FDIC insurance premiums.
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For the nine months ended September 30, 2022, the annualized efficiency ratio was 45.3% compared to 49.0% for the nine months ended September 30, 2021. The decrease was primarily due to the increase in net interest income coupled with a decrease in other expenses. The increase was partially offset by a decrease in non-interest income.
For additional information, contact:
Christopher W. Bergstrom (703) 584-0840
Kent D. Carstater (703) 289-5922
About John Marshall Bancorp, Inc.
John Marshall Bancorp, Inc. is the bank holding company for John Marshall Bank. The Bank is a $2.31 billion bank headquartered in Reston, Virginia with eight full-service branches located in Alexandria, Arlington, Loudoun, Prince William, Reston, and Tysons, Virginia, as well as Rockville, Maryland, and Washington, D.C. with one loan production office in Arlington, Virginia. The Bank is dedicated to providing exceptional value, personalized service and convenience to local businesses and professionals in the Washington D.C. Metro area. The Bank offers a comprehensive line of sophisticated banking products and services that rival those of the largest banks along with experienced staff to help achieve customers’ financial goals. Dedicated Relationship Managers serve as direct points-of-contact, providing subject matter expertise in a variety of niche industries including Charter and Private Schools, Government Contractors, Health Services, Nonprofits and Associations, Professional Services, Property Management Companies, and Title Companies. Learn more at www.johnmarshallbank.com.
In addition to historical information, this press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are based on certain assumptions and describe future plans, strategies and expectations of the Company. These forward-looking statements are generally identified by use of the words “believe,” “expect,” “intend,” “anticipate,” “estimate,” “project,” “will,” “should,” “may,” “view,” “opportunity,” “potential,” or similar expressions or expressions of confidence. The Company’s ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on the operations of the Company and its subsidiary include, but are not limited to the following: changes in interest rates, general economic conditions, public health crises (such as the governmental, social and economic effects of COVID-19), levels of unemployment in the Bank’s lending area, real estate market values in the Bank’s lending area, future natural disasters, the level of prepayments on loans and mortgage-backed securities, legislative/regulatory changes, monetary and fiscal policies of the U.S. Government including policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System, the quality or composition of the loan or investment portfolios, demand for loan products, deposit flows, competition, demand for financial services in the Company’s market area, accounting principles and guidelines, and other conditions which by their nature are not susceptible to accurate forecast, and are subject to significant uncertainty. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. The Company does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions which may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events. Annualized, pro forma, projected and estimated numbers are used for illustrative purpose only, are not forecasts and may not reflect actual results.
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John Marshall Bancorp, Inc. | |||||||||||||
Financial Highlights (Unaudited) | |||||||||||||
(Dollar amounts in thousands, except per share data) | |||||||||||||
| | | | | | | | | | | | | |
| | At or For the Three Months Ended | | At or For the Nine Months Ended | | ||||||||
| | | September 30, | | | September 30, | | ||||||
|
| 2022 |
| 2021 |
| 2022 |
| 2021 | | ||||
Selected Balance Sheet Data | | | | | | | | | | | | | |
Cash and cash equivalents | | $ | 74,756 | | $ | 121,074 | | $ | 74,756 | | $ | 121,074 | |
Total investment securities | | | 473,478 | | | 348,742 | | | 473,478 | | | 348,742 | |
Loans, net of unearned income | | | 1,725,114 | | | 1,602,377 | | | 1,725,114 | | | 1,602,377 | |
Allowance for loan losses | | | (20,032) | | | (19,706) | | | (20,032) | | | (19,706) | |
Total assets | | | 2,305,540 | | | 2,095,504 | | | 2,305,540 | | | 2,095,504 | |
Non-interest bearing demand deposits | | | 535,186 | | | 463,868 | | | 535,186 | | | 463,868 | |
Interest bearing deposits | | | 1,528,155 | | | 1,373,680 | | | 1,528,155 | | | 1,373,680 | |
Total deposits | | | 2,063,341 | | | 1,837,548 | | | 2,063,341 | | | 1,837,548 | |
Shareholders' equity | | | 202,212 | | | 202,222 | | | 202,212 | | | 202,222 | |
| | | | | | | | | | | | | |
Summary Results of Operations | | | | | | | | | | | | | |
Interest income | | $ | 21,208 | | $ | 18,042 | | $ | 60,509 | | $ | 55,416 | |
Interest expense | | | 3,516 | | | 1,876 | | | 7,593 | | | 6,477 | |
Net interest income | | | 17,692 | | | 16,166 | | | 52,916 | | | 48,939 | |
Provision for loan losses | | | - - | | | 325 | | | - - | | | 2,780 | |
Net interest income after provision for loan losses | | | 17,692 | | | 15,841 | | | 52,916 | | | 46,159 | |
Non-interest income | | | 450 | | | 325 | | | 973 | | | 1,206 | |
Non-interest expense | | | 7,958 | | | 7,623 | | | 24,425 | | | 24,583 | |
Income before income taxes | | | 10,184 | | | 8,543 | | | 29,464 | | | 22,782 | |
Net income | | | 8,045 | | | 6,761 | | | 23,601 | | | 17,914 | |
| | | | | | | | | | | | | |
Per Share Data and Shares Outstanding | | | | | | | | | | | | | |
Earnings per share - basic | | $ | 0.57 | | $ | 0.50 | | $ | 1.69 | | $ | 1.31 | |
Earnings per share - diluted | | $ | 0.57 | | $ | 0.48 | | $ | 1.67 | | $ | 1.29 | |
Book value per share | | $ | 14.37 | | $ | 14.82 | | $ | 14.37 | | $ | 14.82 | |
Weighted average common shares (basic) | | | 13,989,414 | | | 13,580,538 | | | 13,902,324 | | | 13,570,449 | |
Weighted average common shares (diluted) | | | 14,108,286 | | | 13,883,104 | | | 14,065,887 | | | 13,865,226 | |
Common shares outstanding at end of period | | | 14,070,080 | | | 13,644,985 | | | 14,070,080 | | | 13,644,985 | |
| | | | | | | | | | | | | |
Performance Ratios | | | | | | | | | | | | | |
Return on average assets (annualized) | | | 1.38 | % | | 1.30 | % | | 1.40 | % | | 1.19 | % |
Return on average equity (annualized) | | | 15.07 | % | | 13.35 | % | | 15.03 | % | | 12.32 | % |
Net interest margin | | | 3.10 | % | | 3.15 | % | | 3.19 | % | | 3.30 | % |
Non-interest income as a percentage of average assets (annualized) | | | 0.08 | % | | 0.06 | % | | 0.06 | % | | 0.08 | % |
Non-interest expense to average assets (annualized) | | | 1.36 | % | | 1.46 | % | | 1.45 | % | | 1.63 | % |
Efficiency ratio | | | 43.9 | % | | 46.2 | % | | 45.3 | % | | 49.0 | % |
| | | | | | | | | | | | | |
Asset Quality | | | | | | | | | | | | | |
Non-performing assets to total assets | | | - - | % | | - - | % | | - - | % | | - - | % |
Non-performing loans to total loans | | | - - | % | | - - | % | | - - | % | | - - | % |
Allowance for loan losses to non-performing loans | | | N/M | | | N/M | | | N/M | | | N/M | |
Allowance for loan losses to total loans (1) | | | 1.16 | % | | 1.23 | % | | 1.16 | % | | 1.23 | % |
Net charge-offs (recoveries) to average loans (annualized) | | | - - | % | | - - | % | | - - | % | | 0.01 | % |
| | | | | | | | | | | | | |
Loans 30-89 days past due and accruing interest | | $ | - - | | $ | - - | | $ | - - | | $ | - - | |
Non-accrual loans | | | - - | | | - - | | | - - | | | - - | |
Other real estate owned | | | - - | | | - - | | | - - | | | - - | |
Non-performing assets (2) | | | - - | | | - - | | | - - | | | - - | |
Troubled debt restructurings (total) | | | 530 | | | 554 | | | 530 | | | 554 | |
Performing in accordance with modified terms | | | 530 | | | 554 | | | 530 | | | 554 | |
Not performing in accordance with modified terms | | | - - | | | - - | | | - - | | | - - | |
| | | | | | | | | | | | | |
Capital Ratios (Bank Level) | | | | | | | | | | | | | |
Equity / assets | | | 9.7 | % | | 10.8 | % | | 9.7 | % | | 10.8 | % |
Total risk-based capital ratio | | | 15.4 | % | | 15.2 | % | | 15.4 | % | | 15.2 | % |
Tier 1 risk-based capital ratio | | | 14.3 | % | | 14.0 | % | | 14.3 | % | | 14.0 | % |
Leverage ratio | | | 11.0 | % | | 10.8 | % | | 11.0 | % | | 10.8 | % |
Common equity tier 1 ratio | | | 14.3 | % | | 14.0 | % | | 14.3 | % | | 14.0 | % |
| | | | | | | | | | | | | |
Other Information | | | | | | | | | | | | | |
Number of full time equivalent employees | | | 136 | | | 142 | | | 136 | | | 142 | |
# Full service branch offices | | | 8 | | | 8 | | | 8 | | | 8 | |
# Loan production or limited service branch offices | | | 1 | | | 1 | | | 1 | | | 1 | |
(1) | The allowance for loan losses to total loans, excluding PPP loans, net of unearned income, of $133 thousand, was 1.16% at September 30, 2022. The allowance for loan losses to total loans, excluding PPP loans, net of unearned income, of $73.4 million, was 1.29% at September 30, 2021. PPP loans received no allocations in the allowance estimate due to the underlying guarantees. |
(2) | Non-performing assets consist of non-accrual loans, loans 90 days or more past due and still accruing interest, and other real estate owned. Does not include troubled debt restructurings which were accruing interest at the date indicated. |
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John Marshall Bancorp, Inc. | |||||||||||||||
| | | | | | | | | | | | | | | |
Consolidated Balance Sheets | |||||||||||||||
(Dollar amounts in thousands, except per share data) | |||||||||||||||
| | | | | | | | | | | | | | | |
| | | | | | | | | | | % Change | ||||
| | September 30, | | December 31, | | September 30, | | Last Nine | | Year Over | |||||
|
| 2022 |
| 2021 | | 2021 |
| Months | | Year | |||||
Assets | | (Unaudited) | | (Unaudited) | | (Unaudited) | | |
| | |
| |||
Cash and due from banks | | $ | 14,957 | | $ | 2,920 | | $ | 10,624 | | 412.2 | % | | 40.8 | % |
Interest-bearing deposits in banks | | | 59,799 | | | 102,879 | | | 110,450 | | (41.9) | % | | (45.9) | % |
Securities available-for-sale, at fair value | | | 366,546 | | | 239,300 | | | 238,628 | | 53.2 | % | | 53.6 | % |
Securities held-to-maturity, fair value of $81,765 and $103,258 at 9/30/2022 and 12/31/2021, respectively. | | | 100,598 | | | 105,509 | | | 103,486 | | (4.7) | % | | (2.8) | % |
Restricted securities, at cost | | | 4,421 | | | 4,951 | | | 4,948 | | (10.7) | % | | (10.7) | % |
Equity securities, at fair value | | | 1,913 | | | 1,869 | | | 1,680 | | 2.4 | % | | 13.9 | % |
Loans, net of unearned income | | | 1,725,114 | | | 1,666,469 | | | 1,602,377 | | 3.5 | % | | 7.7 | % |
Allowance for loan losses | | | (20,032) | | | (20,032) | | | (19,706) | | - | % | | 1.7 | % |
Net loans | | | 1,705,082 | | | 1,646,437 | | | 1,582,671 | | 3.6 | % | | 7.7 | % |
Bank premises and equipment, net | | | 1,331 | | | 1,620 | | | 1,754 | | (17.8) | % | | (24.1) | % |
Accrued interest receivable | | | 4,744 | | | 4,943 | | | 4,661 | | (4.0) | % | | 1.8 | % |
Bank owned life insurance | | | 21,071 | | | 20,998 | | | 20,896 | | 0.3 | % | | 0.8 | % |
Right of use assets | | | 3,936 | | | 4,913 | | | 5,261 | | (19.9) | % | | (25.2) | % |
Other assets | | | 21,142 | | | 12,970 | | | 10,445 | | 63.0 | % | | 102.4 | % |
| | | | | | | | | | | | | | | |
Total assets | | $ | 2,305,540 | | $ | 2,149,309 | | $ | 2,095,504 | | 7.3 | % | | 10.0 | % |
| | | | | | | | | | | | | | | |
Liabilities and Shareholders' Equity | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Liabilities | | | | | | | | | | | | | | | |
Deposits: | | | | | | | | | | | | | | | |
Non-interest bearing demand deposits | | $ | 535,186 | | $ | 488,838 | | $ | 463,868 | | 9.5 | % | | 15.4 | % |
Interest-bearing demand deposits | | | 705,593 | | | 633,901 | | | 630,912 | | 11.3 | % | | 11.8 | % |
Savings deposits | | | 102,909 | | | 101,376 | | | 94,840 | | 1.5 | % | | 8.5 | % |
Time deposits | | | 719,653 | | | 657,438 | | | 647,928 | | 9.5 | % | | 11.1 | % |
Total deposits | | | 2,063,341 | | | 1,881,553 | | | 1,837,548 | | 9.7 | % | | 12.3 | % |
Federal Home Loan Bank advances | | | - - | | | 18,000 | | | 18,000 | | N/M | | | N/M | |
Subordinated debt | | | 24,603 | | | 24,728 | | | 24,716 | | (0.5) | % | | (0.5) | % |
Accrued interest payable | | | 643 | | | 843 | | | 611 | | (23.7) | % | | 5.2 | % |
Lease liabilities | | | 4,186 | | | 5,182 | | | 5,534 | | (19.2) | % | | (24.4) | % |
Other liabilities | | | 10,555 | | | 10,533 | | | 6,873 | | 0.2 | % | | 53.6 | % |
Total liabilities | | | 2,103,328 | | | 1,940,839 | | | 1,893,282 | | 8.4 | % | | 11.1 | % |
| | | | | | | | | | | | | | | |
Shareholders' Equity | | | | | | | | | | | | | | | |
Preferred stock, par value $0.01 per share; authorized | | | | | | | | | | | | | | | |
1,000,000 shares; none issued | | | - - | | | - - | | | - - | | N/M | | | N/M | |
Common stock, nonvoting, par value $0.01 per share; authorized | | | | | | | | | | | | | | | |
1,000,000 shares; none issued | | | - - | | | - - | | | - - | | N/M | | | N/M | |
Common stock, voting, par value $0.01 per share; authorized | | | | | | | | | | | | | | | |
30,000,000 shares; issued and outstanding, 14,070,080 | | | | | | | | | | | | | | | |
at 9/30/2022 including 58,046 unvested shares, 13,745,598 | | | | | | | | | | | | | | | |
shares at 12/31/2021 including 75,826 unvested shares | | | | | | | | | | | | | | | |
and 13,644,985 at 9/30/2021, including 60,575 unvested shares | | | 140 | | | 137 | | | 136 | | 2.2 | % | | 2.9 | % |
Additional paid-in capital | | | 94,560 | | | 91,107 | | | 90,607 | | 3.8 | % | | 4.4 | % |
Retained earnings | | | 138,428 | | | 117,626 | | | 110,079 | | 17.7 | % | | 25.8 | % |
Accumulated other comprehensive income (loss) | | | (30,916) | | | (400) | | | 1,400 | | N/M | | | N/M | |
| | | | | | | | | | | | | | | |
Total shareholders' equity | | | 202,212 | | | 208,470 | | | 202,222 | | (3.0) | % | | (0.0) | % |
| | | | | | | | | | | | | | | |
Total liabilities and shareholders' equity | | $ | 2,305,540 | | $ | 2,149,309 | | $ | 2,095,504 | | 7.3 | % | | 10.0 | % |
7
John Marshall Bancorp, Inc. | ||||||||||||||||||
| | | | | | | | | | | | | | | | | | |
Consolidated Statements of Income | ||||||||||||||||||
(Dollar amounts in thousands, except per share data) | ||||||||||||||||||
| | | | | | | | | | | | | | | | | | |
| | Three Months Ended | | | | | Nine Months Ended | | | | ||||||||
| | September 30, | | | | | September 30, | | | | ||||||||
|
| 2022 |
| 2021 |
| % Change | | 2022 |
| 2021 |
| % Change | ||||||
| | (Unaudited) | | (Unaudited) | | |
| | (Unaudited) | | (Unaudited) | | |
| ||||
Interest and Dividend Income | | | | | | | | | | | | | | | | | | |
Interest and fees on loans | | $ | 18,222 | | $ | 16,737 | | 8.9 | % | | $ | 53,740 | | $ | 52,075 | | 3.2 | % |
Interest on investment securities, taxable | | | 2,323 | | | 1,159 | | 100.4 | % | | | 5,597 | | | 2,921 | | 91.6 | % |
Interest on investment securities, tax-exempt | | | 30 | | | 30 | | 0.0 | % | | | 90 | | | 90 | | 0.0 | % |
Dividends | | | 62 | | | 65 | | (4.6) | % | | | 185 | | | 196 | | (5.6) | % |
Interest on deposits in banks | | | 571 | | | 51 | | N/M | | | | 897 | | | 134 | | N/M | |
Total interest and dividend income | | | 21,208 | | | 18,042 | | 17.5 | % | | | 60,509 | | | 55,416 | | 9.2 | % |
| | | | | | | | | | | | | | | | | | |
Interest Expense | | | | | | | | | | | | | | | | | | |
Deposits | | | 3,068 | | | 1,473 | | 108.3 | % | | | 6,090 | | | 5,268 | | 15.6 | % |
Federal Home Loan Bank advances | | | - - | | | 31 | | (100.0) | % | | | 42 | | | 94 | | (55.3) | % |
Subordinated debt | | | 448 | | | 372 | | 20.4 | % | | | 1,461 | | | 1,115 | | 31.0 | % |
Total interest expense | | | 3,516 | | | 1,876 | | 87.4 | % | | | 7,593 | | | 6,477 | | 17.2 | % |
| | | | | | | | | | | | | | | | | | |
Net interest income | | | 17,692 | | | 16,166 | | 9.4 | % | | | 52,916 | | | 48,939 | | 8.1 | % |
| | | | | | | | | | | | | | | | | | |
Provision for Loan Losses | | | - - | | | 325 | | N/M | | | | - - | | | 2,780 | | N/M | |
| | | | | | | | | | | | | | | | | | |
Net interest income after provision for loan losses | | | 17,692 | | | 15,841 | | 11.7 | % | | | 52,916 | | | 46,159 | | 14.6 | % |
| | | | | | | | | | | | | | | | | | |
Non-interest Income | | | | | | | | | | | | | | | | | | |
Service charges on deposit accounts | | | 79 | | | 70 | | 12.9 | % | | | 240 | | | 188 | | 27.7 | % |
Bank owned life insurance | | | 255 | | | 102 | | 150.0 | % | | | 445 | | | 309 | | 44.0 | % |
Other service charges and fees | | | 175 | | | 120 | | 45.8 | % | | | 469 | | | 339 | | 38.3 | % |
Gains on securities | | | - - | | | - - | | N/M | | | | - - | | | 10 | | N/M | |
Insurance commissions | | | 47 | | | 28 | | 67.9 | % | | | 312 | | | 205 | | 52.2 | % |
Other income (loss) | | | (106) | | | 5 | | N/M | | | | (493) | | | 155 | | N/M | |
Total non-interest income | | | 450 | | | 325 | | 38.5 | % | | | 973 | | | 1,206 | | (19.3) | % |
| | | | | | | | | | | | | | | | | | |
Non-interest Expenses | | | | | | | | | | | | | | | | | | |
Salaries and employee benefits | | | 5,072 | | | 4,977 | | 1.9 | % | | | 15,754 | | | 15,646 | | 0.7 | % |
Occupancy expense of premises | | | 461 | | | 484 | | (4.8) | % | | | 1,435 | | | 1,505 | | (4.7) | % |
Furniture and equipment expenses | | | 323 | | | 373 | | (13.4) | % | | | 989 | | | 1,073 | | (7.8) | % |
Other expenses | | | 2,102 | | | 1,789 | | 17.5 | % | | | 6,247 | | | 6,359 | | (1.8) | % |
Total non-interest expense | | | 7,958 | | | 7,623 | | 4.4 | % | | | 24,425 | | | 24,583 | | (0.6) | % |
| | | | | | | | | | | | | | | | | | |
Income before income taxes | | | 10,184 | | | 8,543 | | 19.2 | % | | | 29,464 | | | 22,782 | | 29.3 | % |
| | | | | | | | | | | | | | | | | | |
Income tax Expense | | | 2,139 | | | 1,782 | | 20.0 | % | | | 5,863 | | | 4,868 | | 20.4 | % |
| | | | | | | | | | | | | | | | | | |
Net income | | $ | 8,045 | | $ | 6,761 | | 19.0 | % | | $ | 23,601 | | $ | 17,914 | | 31.7 | % |
| | | | | | | | | | | | | | | | | | |
Earnings Per Share | | | | | | | | | | | | | | | | | | |
Basic | | $ | 0.57 | | $ | 0.50 | | 14.0 | % | | $ | 1.69 | | $ | 1.31 | | 29.0 | % |
Diluted | | $ | 0.57 | | $ | 0.48 | | 18.8 | % | | $ | 1.67 | | $ | 1.29 | | 29.5 | % |
8
John Marshall Bancorp, Inc. | ||||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | |
Historical Trends - Quarterly Financial Data (Unaudited) | ||||||||||||||||||||||
(Dollar amounts in thousands, except per share data) | ||||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | |
| | 2022 | | 2021 | | |||||||||||||||||
|
| September 30 | | June 30 |
| March 31 |
| December 31 |
| September 30 |
| June 30 |
| March 31 |
| |||||||
Profitability for the Quarter: | | | | | | | | | | | | | | | | | | | | | | |
Interest income | | $ | 21,208 | | $ | 19,555 | | $ | 19,745 | | $ | 18,703 | | $ | 18,042 | | $ | 18,627 | | $ | 18,747 | |
Interest expense | | | 3,516 | | | 2,247 | | | 1,829 | | | 1,734 | | | 1,876 | | | 2,136 | | | 2,465 | |
Net interest income | | | 17,692 | | | 17,308 | | | 17,916 | | | 16,969 | | | 16,166 | | | 16,491 | | | 16,282 | |
Provision for loan losses | | | - - | | | - - | | | - - | | | 325 | | | 325 | | | 90 | | | 2,365 | |
Non-interest income | | | 450 | | | 109 | | | 414 | | | 513 | | | 325 | | | 417 | | | 464 | |
Non-interest expense | | | 7,958 | | | 7,681 | | | 8,786 | | | 7,679 | | | 7,623 | | | 9,067 | | | 7,893 | |
Income before income taxes | | | 10,184 | | | 9,736 | | | 9,544 | | | 9,478 | | | 8,543 | | | 7,751 | | | 6,488 | |
Income tax expense | | | 2,139 | | | 1,854 | | | 1,870 | | | 1,931 | | | 1,782 | | | 1,672 | | | 1,414 | |
Net income | | $ | 8,045 | | $ | 7,882 | | $ | 7,674 | | $ | 7,547 | | $ | 6,761 | | $ | 6,079 | | $ | 5,074 | |
| | | | | | | | | | | | | | | | | | | | | | |
Financial Performance: | | | | | | | | | | | | | | | | | | | | | | |
Return on average assets (annualized) | | | 1.38 | % | | 1.41 | % | | 1.40 | % | | 1.41 | % | | 1.30 | % | | 1.20 | % | | 1.05 | % |
Return on average equity (annualized) | | | 15.07 | % | | 15.28 | % | | 14.76 | % | | 14.52 | % | | 13.35 | % | | 12.64 | % | | 10.89 | % |
Net interest margin | | | 3.10 | % | | 3.16 | % | | 3.34 | % | | 3.23 | % | | 3.15 | % | | 3.32 | % | | 3.44 | % |
Non-interest income as a percentage of average assets (annualized) | | | 0.08 | % | | 0.02 | % | | 0.08 | % | | 0.10 | % | | 0.06 | % | | 0.08 | % | | 0.10 | % |
Non-interest expense to average assets (annualized) | | | 1.36 | % | | 1.38 | % | | 1.61 | % | | 1.44 | % | | 1.46 | % | | 1.79 | % | | 1.64 | % |
Efficiency ratio | | | 43.9 | % | | 44.1 | % | | 47.9 | % | | 43.9 | % | | 46.2 | % | | 53.6 | % | | 47.1 | % |
| | | | | | | | | | | | | | | | | | | | | | |
Per Share Data: | | | | | | | | | | | | | | | | | | | | | | |
Earnings per share - basic | | $ | 0.57 | | $ | 0.56 | | $ | 0.55 | | $ | 0.55 | | $ | 0.50 | | $ | 0.45 | | $ | 0.37 | |
Earnings per share - diluted | | $ | 0.57 | | $ | 0.56 | | $ | 0.55 | | $ | 0.54 | | $ | 0.48 | | $ | 0.44 | | $ | 0.37 | |
Book value per share | | $ | 14.37 | | $ | 14.80 | | $ | 14.68 | | $ | 15.17 | | $ | 14.82 | | $ | 14.32 | | $ | 13.85 | |
Dividends declared per share | | $ | - - | | $ | - - | | $ | 0.20 | | $ | - - | | $ | - - | | $ | - - | | $ | - - | |
Weighted average common shares (basic) | | | 13,989,414 | | | 13,932,256 | | | 13,783,034 | | | 13,581,586 | | | 13,580,538 | | | 13,572,779 | | | 13,557,779 | |
Weighted average common shares (diluted) | | | 14,108,286 | | | 14,085,160 | | | 13,991,692 | | | 13,879,595 | | | 13,883,104 | | | 13,868,147 | | | 13,809,751 | |
Common shares outstanding at end of period | | | 14,070,080 | | | 14,026,589 | | | 13,950,570 | | | 13,745,598 | | | 13,644,985 | | | 13,639,173 | | | 13,634,754 | |
| | | | | | | | | | | | | | | | | | | | | | |
Non-interest Income: | | | | | | | | | | | | | | | | | | | | | | |
Service charges on deposit accounts | | $ | 79 | | $ | 84 | | $ | 77 | | $ | 74 | | $ | 70 | | $ | 60 | | $ | 58 | |
Bank owned life insurance | | | 255 | | | 95 | | | 95 | | | 102 | | | 102 | | | 100 | | | 107 | |
Other service charges and fees | | | 175 | | | 157 | | | 137 | | | 138 | | | 120 | | | 115 | | | 104 | |
Gains on securities | | | - - | | | - - | | | - - | | | - - | | | - - | | | - - | | | 10 | |
Insurance commissions | | | 47 | | | 44 | | | 221 | | | 79 | | | 28 | | | 22 | | | 155 | |
Other income (loss) | | | (106) | | | (271) | | | (116) | | | 120 | | | 5 | | | 120 | | | 30 | |
Total non-interest income | | $ | 450 | | $ | 109 | | $ | 414 | | $ | 513 | | $ | 325 | | $ | 417 | | $ | 464 | |
| | | | | | | | | | | | | | | | | | | | | | |
Non-interest Expenses: | | | | | | | | | | | | | | | | | | | | | | |
Salaries and employee benefits | | $ | 5,072 | | $ | 4,655 | | $ | 6,027 | | $ | 4,765 | | $ | 4,977 | | $ | 5,680 | | $ | 4,989 | |
Occupancy expense of premises | | | 461 | | | 482 | | | 493 | | | 480 | | | 484 | | | 514 | | | 507 | |
Furniture and equipment expenses | | | 323 | | | 341 | | | 325 | | | 363 | | | 373 | | | 378 | | | 322 | |
Other expenses | | | 2,102 | | | 2,203 | | | 1,941 | | | 2,071 | | | 1,789 | | | 2,495 | | | 2,075 | |
Total non-interest expenses | | $ | 7,958 | | $ | 7,681 | | $ | 8,786 | | $ | 7,679 | | $ | 7,623 | | $ | 9,067 | | $ | 7,893 | |
| | | | | | | | | | | | | | | | | | | | | | |
Balance Sheets at Quarter End: | | | | | | | | | | | | | | | | | | | | | | |
Total loans | | $ | 1,725,114 | | $ | 1,692,652 | | $ | 1,631,260 | | $ | 1,666,469 | | $ | 1,602,377 | | $ | 1,567,112 | | $ | 1,605,783 | |
Allowance for loan losses | | | (20,032) | | | (20,031) | | | (20,031) | | | (20,032) | | | (19,706) | | | (19,381) | | | (19,381) | |
Investment securities | | | 473,478 | | | 473,914 | | | 409,692 | | | 351,629 | | | 348,742 | | | 306,030 | | | 219,106 | |
Interest-earning assets | | | 2,258,822 | | | 2,274,968 | | | 2,217,553 | | | 2,121,407 | | | 2,062,000 | | | 2,032,235 | | | 1,979,848 | |
Total assets | | | 2,305,540 | | | 2,316,374 | | | 2,249,609 | | | 2,149,309 | | | 2,095,504 | | | 2,065,895 | | | 2,009,988 | |
Total deposits | | | 2,063,341 | | | 2,043,741 | | | 1,983,099 | | | 1,881,553 | | | 1,837,548 | | | 1,815,032 | | | 1,761,390 | |
Total interest-bearing liabilities | | | 1,552,758 | | | 1,581,017 | | | 1,530,133 | | | 1,435,443 | | | 1,416,396 | | | 1,379,031 | | | 1,388,286 | |
Total shareholders' equity | | | 202,212 | | | 207,530 | | | 204,855 | | | 208,470 | | | 202,222 | | | 195,246 | | | 188,904 | |
| | | | | | | | | | | | | | | | | | | | | | |
Quarterly Average Balance Sheets: | | | | | | | | | | | | | | | | | | | | | | |
Total gross loans | | $ | 1,684,796 | | $ | 1,641,914 | | $ | 1,620,533 | | $ | 1,629,124 | | $ | 1,580,695 | | $ | 1,602,125 | | $ | 1,575,847 | |
Allowance for loan losses | | | (20,032) | | | (20,031) | | | (20,032) | | | (19,889) | | | (19,525) | | | (19,530) | | | (17,816) | |
Investment securities | | | 488,860 | | | 447,688 | | | 376,608 | | | 356,007 | | | 325,027 | | | 256,671 | | | 180,180 | |
Interest-earning assets | | | 2,277,325 | | | 2,204,709 | | | 2,183,897 | | | 2,090,052 | | | 2,038,384 | | | 1,996,555 | | | 1,922,835 | |
Total assets | | | 2,314,825 | | | 2,240,119 | | | 2,216,131 | | | 2,121,980 | | | 2,069,143 | | | 2,027,364 | | | 1,954,088 | |
Total deposits | | | 2,057,640 | | | 1,980,231 | | | 1,946,882 | | | 1,857,782 | | | 1,812,635 | | | 1,820,939 | | | 1,709,678 | |
Total interest-bearing liabilities | | | 1,547,766 | | | 1,504,574 | | | 1,505,854 | | | 1,419,679 | | | 1,384,867 | | | 1,381,583 | | | 1,350,742 | |
Total shareholders' equity | | | 212,147 | | | 206,967 | | | 210,900 | | | 206,237 | | | 200,990 | | | 192,918 | | | 188,995 | |
| | | | | | | | | | | | | | | | | | | | | | |
Financial Measures: | | | | | | | | | | | | | | | | | | | | | | |
Average equity to average assets | | | 9.2 | % | | 9.2 | % | | 9.5 | % | | 9.7 | % | | 9.7 | % | | 9.5 | % | | 9.7 | % |
Investment securities to earning assets | | | 21.0 | % | | 20.8 | % | | 18.5 | % | | 16.6 | % | | 16.9 | % | | 15.1 | % | | 11.1 | % |
Loans to earning assets | | | 76.4 | % | | 74.4 | % | | 73.6 | % | | 78.6 | % | | 77.7 | % | | 77.1 | % | | 81.1 | % |
Loans to assets | | | 74.8 | % | | 73.1 | % | | 72.5 | % | | 77.5 | % | | 76.5 | % | | 75.9 | % | | 79.9 | % |
Loans to deposits | | | 83.6 | % | | 82.8 | % | | 82.3 | % | | 88.6 | % | | 87.2 | % | | 86.3 | % | | 91.2 | % |
| | | | | | | | | | | | | | | | | | | | | | |
Capital Ratios (Bank Level): | | | | | | | | | | | | | | | | | | | | | | |
Equity / assets | | | 9.7 | % | | 9.9 | % | | 10.2 | % | | 10.8 | % | | 10.8 | % | | 10.6 | % | | 10.5 | % |
Total risk-based capital ratio | | | 15.4 | % | | 15.1 | % | | 15.4 | % | | 15.3 | % | | 15.2 | % | | 15.0 | % | | 14.6 | % |
Tier 1 risk-based capital ratio | | | 14.3 | % | | 14.0 | % | | 14.2 | % | | 14.0 | % | | 14.0 | % | | 13.9 | % | | 13.4 | % |
Leverage ratio | | | 11.0 | % | | 11.0 | % | | 10.8 | % | | 11.0 | % | | 10.8 | % | | 10.7 | % | | 10.8 | % |
Common equity tier 1 ratio | | | 14.3 | % | | 14.0 | % | | 14.2 | % | | 14.0 | % | | 14.0 | % | | 12.3 | % | | 13.4 | % |
9
John Marshall Bancorp, Inc. | |||||||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loan, Deposit and Borrowing Detail (Unaudited) | |||||||||||||||||||||||||||||
(Dollar amounts in thousands) | |||||||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 2022 | | 2021 | | ||||||||||||||||||||||||
| | September 30 | | June 30 | | March 31 | | December 31 | | September 30 | | June 30 | | March 31 | | ||||||||||||||
Loans |
| $ Amount | % of Total |
| $ Amount | % of Total | | $ Amount | % of Total |
| $ Amount | % of Total |
| $ Amount | % of Total |
| $ Amount | % of Total |
| $ Amount | % of Total |
| |||||||
Commercial business loans | | $ | 44,967 | 2.6 | % | $ | 47,654 | 2.8 | % | $ | 52,569 | 3.2 | % | $ | 53,378 | 3.2 | % | $ | 53,166 | 3.3 | % | $ | 55,375 | 3.5 | % | $ | 60,637 | 3.8 | % |
Commercial PPP loans | | | 138 | 0.0 | % | | 224 | 0.0 | % | | 7,781 | 0.5 | % | | 69,567 | 4.2 | % | | 75,496 | 4.7 | % | | 82,190 | 5.2 | % | | 117,796 | 7.3 | % |
Commercial owner-occupied real estate loans | | | 362,346 | 21.1 | % | | 378,457 | 22.4 | % | | 339,933 | 20.9 | % | | 345,272 | 20.7 | % | | 326,585 | 20.4 | % | | 320,519 | 20.4 | % | | 307,918 | 19.2 | % |
Total business loans | | | 407,451 | 23.7 | % | | 426,335 | 25.2 | % | | 400,283 | 24.6 | % | | 468,217 | 28.1 | % | | 455,247 | 28.4 | % | | 458,084 | 29.2 | % | | 486,351 | 30.3 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investor real estate loans | | | 622,415 | 36.1 | % | | 598,501 | 35.5 | % | | 553,093 | 34.0 | % | | 523,038 | 31.4 | % | | 519,384 | 32.4 | % | | 505,605 | 32.3 | % | | 502,940 | 31.3 | % |
Construction & development loans | | | 199,324 | 11.6 | % | | 189,644 | 11.2 | % | | 219,160 | 13.4 | % | | 231,090 | 13.9 | % | | 228,993 | 14.3 | % | | 219,175 | 14.0 | % | | 250,208 | 15.6 | % |
Multi-family loans | | | 106,460 | 6.2 | % | | 106,236 | 6.3 | % | | 99,100 | 6.1 | % | | 100,132 | 6.0 | % | | 81,226 | 5.1 | % | | 92,203 | 5.9 | % | | 84,689 | 5.3 | % |
Total commercial real estate loans | | | 928,199 | 53.9 | % | | 894,381 | 53.0 | % | | 871,353 | 53.5 | % | | 854,260 | 51.3 | % | | 829,603 | 51.8 | % | | 816,983 | 52.1 | % | | 837,837 | 52.2 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Residential mortgage loans | | | 385,696 | 22.4 | % | | 368,370 | 21.8 | % | | 356,331 | 21.9 | % | | 342,491 | 20.6 | % | | 316,549 | 19.8 | % | | 291,615 | 18.6 | % | | 281,964 | 17.5 | % |
Consumer loans | | | 585 | 0.0 | % | | 651 | 0.0 | % | | 513 | 0.0 | % | | 586 | 0.0 | % | | 631 | 0.0 | % | | 916 | 0.1 | % | | 793 | 0.0 | % |
Total loans | | $ | 1,721,931 | 100.0 | % | $ | 1,689,737 | 100.0 | % | $ | 1,628,480 | 100.0 | % | $ | 1,665,554 | 100.0 | % | $ | 1,602,030 | 100.0 | % | $ | 1,567,598 | 100.0 | % | $ | 1,606,945 | 100.0 | % |
Less: Allowance for loan losses | | | (20,032) | | | | (20,031) | | | | (20,031) | | | | (20,032) | | | | (19,706) | | | | (19,381) | | | | (19,381) | | |
Net deferred loan costs (fees) | | | 3,183 | | | | 2,915 | | | | 2,780 | | | | 915 | | | | 347 | | | | (486) | | | | (1,162) | | |
Net loans | | $ | 1,705,082 | | | $ | 1,672,621 | | | $ | 1,611,229 | | | $ | 1,646,437 | | | $ | 1,582,671 | | | $ | 1,547,731 | | | $ | 1,586,402 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 2022 | | 2021 | | ||||||||||||||||||||||||
| | September 30 | | June 30 | | March 31 | | | December 31 | | September 30 | | June 30 | | March 31 | | |||||||||||||
Deposits | | $ Amount | % of Total | | $ Amount | % of Total | | $ Amount | % of Total | | $ Amount | % of Total | | $ Amount | % of Total | | $ Amount | % of Total | | $ Amount | % of Total | | |||||||
Non-interest bearing demand deposits | | $ | 535,186 | 25.9 | % | $ | 512,284 | 25.1 | % | $ | 495,811 | 25.0 | % | $ | 488,838 | 26.0 | % | $ | 463,868 | 25.2 | % | $ | 478,705 | 26.4 | % | $ | 419,796 | 23.8 | % |
Interest-bearing demand deposits: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
NOW accounts(1) | | | 293,558 | 14.2 | % | | 338,789 | 16.6 | % | | 345,087 | 17.4 | % | | 267,594 | 14.2 | % | | 294,261 | 16.0 | % | | 254,060 | 14.0 | % | | 245,274 | 13.9 | % |
Money market accounts(1) | | | 412,035 | 20.0 | % | | 399,877 | 19.6 | % | | 414,987 | 20.9 | % | | 366,306 | 19.4 | % | | 336,651 | 18.3 | % | | 333,818 | 18.4 | % | | 344,807 | 19.6 | % |
Savings accounts | | | 102,909 | 5.0 | % | | 112,276 | 5.4 | % | | 114,427 | 5.8 | % | | 101,376 | 5.4 | % | | 94,840 | 5.2 | % | | 79,119 | 4.4 | % | | 72,102 | 4.1 | % |
Certificates of deposit | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
$250,000 or more | | | 280,027 | 13.6 | % | | 255,411 | 12.5 | % | | 241,230 | 12.1 | % | | 250,204 | 13.3 | % | | 232,722 | 12.7 | % | | 243,662 | 13.4 | % | | 265,772 | 15.1 | % |
Less than $250,000 | | | 88,421 | 4.3 | % | | 87,505 | 4.3 | % | | 91,050 | 4.6 | % | | 103,084 | 5.5 | % | | 104,463 | 5.7 | % | | 112,991 | 6.2 | % | | 119,828 | 6.8 | % |
QwickRate® certificates of deposit | | | 20,154 | 1.0 | % | | 20,154 | 1.0 | % | | 23,136 | 1.2 | % | | 25,122 | 1.3 | % | | 28,998 | 1.6 | % | | 31,481 | 1.7 | % | | 38,565 | 2.2 | % |
IntraFi® certificates of deposit | | | 46,305 | 2.2 | % | | 32,686 | 1.6 | % | | 39,628 | 2.0 | % | | 61,281 | 3.3 | % | | 66,926 | 3.6 | % | | 60,761 | 3.3 | % | | 38,284 | 2.2 | % |
Brokered deposits | | | 284,746 | 13.8 | % | | 284,759 | 13.9 | % | | 217,743 | 11.0 | % | | 217,748 | 11.6 | % | | 214,819 | 11.7 | % | | 220,435 | 12.1 | % | | 216,962 | 12.3 | % |
Total deposits | | $ | 2,063,341 | 100.0 | % | $ | 2,043,741 | 100.0 | % | $ | 1,983,099 | 100.0 | % | $ | 1,881,553 | 100.0 | % | $ | 1,837,548 | 100.0 | % | $ | 1,815,032 | 100.0 | % | $ | 1,761,390 | 100.0 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Borrowings | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Federal Home Loan Bank advances | | $ | - - | 0.0 | % | $ | - - | 0.0 | % | $ | 18,000 | 42.0 | % | $ | 18,000 | 42.1 | % | $ | 18,000 | 42.1 | % | $ | 18,000 | 42.2 | % | $ | 22,000 | 47.1 | % |
Subordinated debt | | | 24,603 | 100.0 | % | | 49,560 | 100.0 | % | | 24,845 | 58.0 | % | | 24,728 | 57.9 | % | | 24,716 | 57.9 | % | | 24,704 | 57.8 | % | | 24,692 | 52.9 | % |
Total borrowings | | $ | 24,603 | 100.0 | % | $ | 49,560 | 100.0 | % | $ | 42,845 | 100.0 | % | $ | 42,728 | 100.0 | % | $ | 42,716 | 100.0 | % | $ | 42,704 | 100.0 | % | $ | 46,692 | 100.0 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total deposits and borrowings | | $ | 2,087,944 | | | $ | 2,093,301 | | | $ | 2,025,944 | | | $ | 1,924,281 | | | $ | 1,880,264 | | | $ | 1,857,736 | | | $ | 1,808,082 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Core customer funding sources (2) | | $ | 1,758,441 | 85.2 | % | $ | 1,738,828 | 85.1 | % | $ | 1,742,220 | 87.1 | % | $ | 1,638,683 | 86.3 | % | $ | 1,593,731 | 85.9 | % | $ | 1,563,116 | 85.3 | % | $ | 1,505,863 | 84.4 | % |
Wholesale funding sources (3) | | | 304,900 | 14.8 | % | | 304,913 | 14.9 | % | | 258,879 | 12.9 | % | | 260,870 | 13.7 | % | | 261,817 | 14.1 | % | | 269,916 | 14.7 | % | | 277,527 | 15.6 | % |
Total funding sources | | $ | 2,063,341 | 100.0 | % | $ | 2,043,741 | 100.0 | % | $ | 2,001,099 | 100.0 | % | $ | 1,899,553 | 100.0 | % | $ | 1,855,548 | 100.0 | % | $ | 1,833,032 | 100.0 | % | $ | 1,783,390 | 100.0 | % |
| (1) | Includes IntraFi® accounts. |
| (2) | Includes reciprocal IntraFi Demand®, IntraFi Money Market® and IntraFi CD® deposits, which are maintained by customers. |
| (3) | Consists of QwickRate® certificates of deposit, brokered deposits, federal funds purchased and Federal Home Loan Bank advances. |
10
John Marshall Bancorp, Inc. | | ||||||||||||||||
| | | | | | | | | | | | | | | | | |
Average Balance Sheets, Interest and Rates (unaudited) | | ||||||||||||||||
(Dollar amounts in thousands) | | ||||||||||||||||
| | | | | | | | | | | | | | | | | |
| | Nine months ended September 30, 2022 | | Nine months ended September 30, 2021 |
| ||||||||||||
|
| | |
| Interest Income / |
| Average |
| | |
| Interest Income / |
| Average |
| ||
| | Average Balance | | Expense | | Rate | | Average Balance | | Expense | | Rate |
| ||||
Assets: |
| |
|
| |
|
|
|
| |
|
| |
|
|
| |
Securities: |
| |
|
| |
|
|
|
| |
|
| |
|
|
| |
Taxable | | $ | 433,128 |
| $ | 5,782 |
| 1.78 | % | $ | 249,451 |
| $ | 3,117 |
| 1.67 | % |
Tax-exempt(1) | |
| 5,002 |
| | 114 |
| 3.05 | % |
| 5,039 |
| | 114 |
| 3.02 | % |
Total securities | | $ | 438,130 | | $ | 5,896 |
| 1.80 | % | $ | 254,490 | | $ | 3,231 |
| 1.70 | % |
Loans, net of unearned income(2): | |
|
| |
|
|
|
| |
|
| |
|
|
| | |
Taxable | |
| 1,626,661 | |
| 53,192 |
| 4.37 | % |
| 1,565,883 | |
| 51,533 |
| 4.40 | % |
Tax-exempt(1) | |
| 22,656 | |
| 694 |
| 4.10 | % |
| 20,357 | |
| 686 |
| 4.51 | % |
Total loans, net of unearned income | | $ | 1,649,317 | | $ | 53,886 |
| 4.37 | % | $ | 1,586,240 | | $ | 52,219 |
| 4.40 | % |
Interest-bearing deposits in other banks | | $ | 134,874 | | $ | 897 |
| 0.89 | % | $ | 145,618 | | $ | 134 |
| 0.12 | % |
Total interest-earning assets | | $ | 2,222,321 | | $ | 60,679 |
| 3.65 | % | $ | 1,986,348 | | $ | 55,584 |
| 3.74 | % |
Total non-interest earning assets | |
| 35,066 | | | |
|
| |
| 30,863 | |
|
|
|
| |
Total assets | | $ | 2,257,387 | | | |
|
| | $ | 2,017,211 | |
|
|
|
| |
Liabilities & Shareholders’ Equity: | |
|
| |
|
|
|
| |
|
| |
|
|
|
| |
Interest-bearing deposits | |
|
| |
|
|
|
| |
|
| |
|
|
|
| |
NOW accounts | | $ | 325,647 | | $ | 829 |
| 0.34 | % | $ | 255,791 | | $ | 594 |
| 0.31 | % |
Money market accounts | |
| 389,535 | |
| 1,516 |
| 0.52 | % |
| 333,366 | | | 927 |
| 0.37 | % |
Savings accounts | |
| 109,740 | |
| 284 |
| 0.35 | % |
| 76,910 | | | 210 |
| 0.37 | % |
Time deposits | |
| 658,897 | |
| 3,461 |
| 0.70 | % |
| 663,257 | | | 3,537 |
| 0.71 | % |
Total interest-bearing deposits | | $ | 1,483,819 | | $ | 6,090 |
| 0.55 | % | $ | 1,329,324 | | $ | 5,268 |
| 0.53 | % |
Subordinated debt | |
| 27,476 | |
| 1,461 |
| 7.11 | % |
| 24,696 | |
| 1,115 |
| 6.04 | % |
Other borrowed funds | |
| 8,257 | |
| 42 |
| 0.68 | % |
| 18,502 | |
| 94 |
| 0.68 | % |
Total interest-bearing liabilities | | $ | 1,519,552 | | $ | 7,593 |
| 0.67 | % | $ | 1,372,522 | | $ | 6,477 |
| 0.63 | % |
Demand deposits | |
| 511,504 | | | |
|
| |
| 437,905 | |
|
|
|
| |
Other liabilities | |
| 16,321 | | | |
|
| |
| 12,439 | |
|
|
|
| |
Total liabilities | | $ | 2,047,377 | | | |
|
| | $ | 1,822,866 | |
|
|
|
| |
Shareholders’ equity | | $ | 210,010 | | | |
|
| | $ | 194,345 | |
|
|
|
| |
Total liabilities and shareholders’ equity | | $ | 2,257,387 | | | |
|
| | $ | 2,017,211 | |
|
|
|
| |
| | | | | | | | | | |
| |
|
|
| | |
Tax-equivalent net interest income and spread | | | | | $ | 53,086 | | 2.98 | % | | | | $ | 49,107 | | 3.11 | % |
Less: tax-equivalent adjustment | | | | | | 170 | | | | | | | | 168 | | | |
Net interest income | | | | | $ | 52,916 | | | | | | | $ | 48,939 | | | |
| | | | | | | | | | | | | | | | | |
Tax-equivalent interest income/earnings assets | | | | | | | | 3.65 | % | | | | | | | 3.74 | % |
Interest expense/earning assets | | | | | | | | 0.46 | % | | | | | | | 0.44 | % |
Net interest margin(3) | | | | | | | | 3.19 | % | | | | | | | 3.30 | % |
(1) | Tax-equivalent income has been adjusted using the federal statutory tax rate of 21%. The annualized taxable-equivalent adjustments utilized in the above table to compute yields aggregated to $170 thousand and $168 thousand in 2022 and 2021, respectively. |
(2) The Company did not have any loans on non-accrual as of September 30, 2022 or September 30, 2021.
(3) The net interest margin has been calculated on a tax-equivalent basis.
11
John Marshall Bancorp, Inc. | | ||||||||||||||||
| | | | | | | | | | | | | | | | | |
Average Balance Sheets, Interest and Rates (unaudited) | | ||||||||||||||||
(Dollar amounts in thousands) | | ||||||||||||||||
| | | | | | | | | | | | | | | | | |
| | Three months ended September 30, 2022 | | Three months ended September 30, 2021 |
| ||||||||||||
|
| | |
| Interest Income / |
| Average |
| | |
| Interest Income / |
| Average |
| ||
| | Average Balance | | Expense | | Rate | | Average Balance | | Expense | | Rate |
| ||||
Assets: |
| |
|
| |
|
|
|
| |
|
| |
|
|
| |
Securities: |
| |
|
| |
|
|
|
| |
|
| |
|
|
| |
Taxable | | $ | 483,861 |
| $ | 2,385 |
| 1.96 | % | $ | 320,014 |
| $ | 1,224 |
| 1.52 | % |
Tax-exempt(1) | |
| 4,999 |
| | 38 |
| 3.02 | % |
| 5,013 |
| | 38 |
| 3.01 | % |
Total securities | | $ | 488,860 | | $ | 2,423 |
| 1.97 | % | $ | 325,027 | | $ | 1,262 |
| 1.54 | % |
Loans, net of unearned income(2): | |
|
| |
|
|
|
| |
|
| |
|
|
| | |
Taxable | |
| 1,655,670 | |
| 17,983 |
| 4.31 | % |
| 1,555,877 | |
| 16,533 |
| 4.22 | % |
Tax-exempt(1) | |
| 29,126 | |
| 302 |
| 4.11 | % |
| 24,818 | |
| 259 |
| 4.14 | % |
Total loans, net of unearned income | | $ | 1,684,796 | | $ | 18,285 |
| 4.31 | % | $ | 1,580,695 | | $ | 16,792 |
| 4.21 | % |
Interest-bearing deposits in other banks | | $ | 103,669 | | $ | 571 |
| 2.19 | % | $ | 132,662 | | $ | 51 |
| 0.15 | % |
Total interest-earning assets | | $ | 2,277,325 | | $ | 21,279 |
| 3.71 | % | $ | 2,038,384 | | $ | 18,105 |
| 3.52 | % |
Total non-interest earning assets | |
| 37,500 | | | |
|
| |
| 30,759 | |
|
|
|
| |
Total assets | | $ | 2,314,825 | | | |
|
| | $ | 2,069,143 | |
|
|
|
| |
Liabilities & Shareholders’ Equity: | |
|
| |
|
|
|
| |
|
| |
|
|
|
| |
Interest-bearing deposits | |
|
| |
|
|
|
| |
|
| |
|
|
|
| |
NOW accounts | | $ | 329,780 | | $ | 404 |
| 0.49 | % | $ | 277,117 | | $ | 203 |
| 0.29 | % |
Money market accounts | |
| 377,736 | |
| 727 |
| 0.76 | % |
| 327,144 | | | 296 |
| 0.36 | % |
Savings accounts | |
| 106,647 | |
| 107 |
| 0.40 | % |
| 87,935 | | | 75 |
| 0.34 | % |
Time deposits | |
| 705,206 | |
| 1,830 |
| 1.03 | % |
| 649,963 | | | 899 |
| 0.55 | % |
Total interest-bearing deposits | | $ | 1,519,369 | | $ | 3,068 |
| 0.80 | % | $ | 1,342,159 | | $ | 1,473 |
| 0.44 | % |
Subordinated debt | |
| 28,397 | |
| 448 |
| 6.26 | % |
| 24,708 | |
| 372 |
| 5.97 | % |
Other borrowed funds | |
| — | |
| — |
| 0.00 | % |
| 18,000 | |
| 31 |
| 0.68 | % |
Total interest-bearing liabilities | | $ | 1,547,766 | | $ | 3,516 |
| 0.90 | % | $ | 1,384,867 | | $ | 1,876 |
| 0.54 | % |
Demand deposits | |
| 538,271 | | | |
|
| |
| 470,476 | |
|
|
|
| |
Other liabilities | |
| 16,641 | | | |
|
| |
| 12,810 | |
|
|
|
| |
Total liabilities | | $ | 2,102,678 | | | |
|
| | $ | 1,868,153 | |
|
|
|
| |
Shareholders’ equity | | $ | 212,147 | | | |
|
| | $ | 200,990 | |
|
|
|
| |
Total liabilities and shareholders’ equity | | $ | 2,314,825 | | | |
|
| | $ | 2,069,143 | |
|
|
|
| |
| | | | | | | | | | |
| |
|
|
| | |
Tax-equivalent net interest income and spread | | | | | $ | 17,763 | | 2.81 | % | | | | $ | 16,229 | | 2.98 | % |
Less: tax-equivalent adjustment | | | | | | 71 | | | | | | | | 63 | | | |
Net interest income | | | | | $ | 17,692 | | | | | | | $ | 16,166 | | | |
| | | | | | | | | | | | | | | | | |
Tax-equivalent interest income/earnings assets | | | | | | | | 3.71 | % | | | | | | | 3.52 | % |
Interest expense/earning assets | | | | | | | | 0.61 | % | | | | | | | 0.37 | % |
Net interest margin(3) | | | | | | | | 3.10 | % | | | | | | | 3.15 | % |
(1) | Tax-equivalent income has been adjusted using the federal statutory tax rate of 21%. The annualized taxable-equivalent adjustments utilized in the above table to compute yields aggregated to $71 thousand and $63 thousand in 2022 and 2021, respectively. |
(2) The Company did not have any loans on non-accrual as of September 30, 2022 or September 30, 2021.
(3) The net interest margin has been calculated on a tax-equivalent basis.
12