Exhibit 99.1

Graphic

For Immediate Release

January 18, 2023

John Marshall Bancorp, Inc. Reports 24.9% Annual Earnings Increase,

14.8% Quarterly Loan Growth Annualized and Superior Asset Quality

Reston, VA – John Marshall Bancorp, Inc. (Nasdaq: JMSB) (the “Company”), parent company of John Marshall Bank (the “Bank”), reported its financial results for the three and twelve months ended December 31, 2022.

Fourth Quarter and Year-to-Date Highlights

Record Earnings – The Company reported its sixteenth consecutive quarter of record earnings. Net income of $8.2 million for the fourth quarter of 2022 represented a $655 thousand or 8.7% increase over the $7.5 million reported for the fourth quarter of 2021. Earnings per diluted share for the three months ended December 31, 2022 were $0.58, a 7.4% increase over the $0.54 reported for the three months ended December 31, 2021. The Company reported record net income of $31.8 million for the year ended December 31, 2022, a $6.3 million or 24.9% increase over the $25.5 million reported for the same period of 2021. Earnings per diluted share for the year ended December 31, 2022 were $2.25, a 22.9% increase over the $1.83 reported for the same period of 2021.
Robust Core Loan Growth – Excluding Paycheck Protection Program (“PPP”) loans, gross loans net of unearned income (“Core Loans”) grew $190.6 million or 11.9% from December 31, 2021 to December 31, 2022.  Core Loans increased $64.4 million during the quarter ended December 31, 2022 or 14.8% annualized from September 30, 2022. The Company remains steadfast in adhering to our strict underwriting standards to maintain pristine asset quality.
Consistently Strong Returns – Annualized Return on Average Assets (“ROAA”) was 1.40% and annualized Return on Average Equity (“ROAE”) was 15.65% for the three months ended December 31, 2022. ROAA and ROAE were 1.41% and 14.52%, respectively, for the three months ended December 31, 2021.
Commitment to Cost Conscious Growth – Revenues (net interest income plus non-interest income) grew 16.8% annualized for the three months ended December 31, 2022 relative to the three months ended December 31, 2021.  Over the same period, overhead decreased 11.9% annualized. The ratio of annualized non-interest expense to average assets was 1.27% for the fourth quarter of 2022 compared to 1.44% for the fourth quarter of 2021. The efficiency ratio for the fourth quarter of 2022 was 40.9% compared to 43.9% for the fourth quarter of 2021.
No Non-performing Assets; No Loans More Than 30 Days Past Due – For the thirteenth consecutive quarter, the Company had no nonperforming 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 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, commented, “2022 was a remarkable year for John Marshall.  We registered our shares with the SEC, listed our stock on Nasdaq, gained inclusion in the Russell 2000 Index, refinanced our subordinated debt to a lower rate, paid our first cash dividend, broadened our customer service and fee income capabilities by implementing an interest rate swap program, decreased overhead, maintained our outstanding asset quality and delivered our fourth consecutive year of record earnings.  On behalf of the Company, I want to express appreciation for our employees and customers who made these many strategic goals reality.  Looking forward, each year holds its own set of challenges and early signs indicate that 2023 will be no different.  As interest rates have risen, depositors have many investment alternatives from which to choose and, as a result, deposit costs are rising.  Certain economic data seem to point to a recession, which could moderate loan growth and impact borrowers’ ability

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to service their loans.  Despite these potential hurdles, I remain confident in our people and our business model.  We believe with our liquid, well-capitalized balance sheet, strong asset quality, robust underwriting and conservative culture that we are well prepared to manage for the potential challenges ahead.”

Balance Sheet and Credit Quality

Total assets were $2.35 billion at December 31, 2022, $2.31 billion at September 30, 2022 and $2.15 billion at December 31, 2021. During the fourth quarter of 2022, assets increased $42.7 million or 7.4% annualized primarily due to an increase in loans. Asset growth from December 31, 2021 to December 31, 2022 was $198.9 million or 9.3%.

Total loans, net of unearned income, increased by 7.4% to $1.79 billion at December 31, 2022, compared to $1.67 billion at December 31, 2021. The year-over-year increase in the loan portfolio was primarily attributable to growth in the investor real estate and residential mortgage portfolios.

Total loans, net of unearned income, increased $64.4 million during the quarter ended December 31, 2022 or 14.8% annualized from $1.73 billion at September 30, 2022. The increase in loans was primarily attributable to growth in the investor real estate, residential mortgage, and commercial owner-occupied real estate loan portfolios.

The Company’s portfolio of investments in fixed income securities was $457.0 million at December 31, 2022, $467.1 million at September 30, 2022, and $344.8 million at December 31, 2021. All but $11.3 million of the fixed income portfolio is backed by the explicit or implicit guarantees of the United States Government or one of its agencies. Nearly 70% of the fixed income portfolio is invested in amortizing investments, which provides the Company with a source of steady cash flow to reinvest each month.  For 2023, the Company anticipates primarily reinvesting fixed income cash flows into loans.  At December 31, 2022, the fixed income portfolio had an estimated weighted average life of 4.5 years.

The Company’s balance sheet remains highly liquid. In addition to deposits in banks and cash flows from fixed income securities, liquidity needs are also met with cash and cash equivalents and unencumbered securities classified as available-for-sale. Liquid assets totaled $335.8 million as of December 31, 2022 compared to $299.3 million at December 31, 2021. These amounts represented 14.3% and 16.8% of total assets as of December 31, 2022 and December 31, 2021, respectively. In addition, the Bank had secured borrowing capacity of $388 million at December 31, 2022.

Total deposits were $2.07 billion at December 31, 2022, $2.06 billion at September 30, 2022, and $1.88 billion at December 31, 2021. Deposit growth was 9.9% during the past twelve months, as time deposits grew 22.3% and interest-bearing demand deposits grew 9.2%.

Total borrowings, defined as federal funds purchased, Federal Home Loan Bank advances, and subordinated debt, increased by $25.5 million to $50.1 million at December 31, 2022 compared to $24.6 million at September 30, 2022.  The increase during the quarter was due to $25.5 million in federal funds purchased.  Federal Home Loan Bank advances decreased from $18.0 million at December 31, 2021 to zero at December 31, 2022 and were unchanged from September 30, 2022.

Shareholders’ equity increased $4.3 million or 2.1% to $212.8 million at December 31, 2022 compared to $208.5 million at December 31, 2021, as a result of increases in retained earnings and additional paid-in capital, which were partially offset by the increase in the unrealized loss on our available-for-sale investment portfolio. Book value per share was $15.09 as of December 31, 2022 compared to $15.17 as of December 31, 2021. The year-over-year change in book value per share was primarily due to increased accumulated other comprehensive loss, 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 accumulated other comprehensive loss was primarily attributable to increases in unrealized losses on our available-for-sale investment portfolio due to market value changes as a result of rising interest rates. Book value per share, excluding accumulated other comprehensive loss (a non-GAAP financial measure which is defined in the tables below) was $17.13 at December 31, 2022 compared to $15.20 at December 31, 2021. The Bank’s capital ratios remain well above regulatory thresholds for well-capitalized banks. As of December 31, 2022, the Bank’s total risk-based capital ratio was 15.6%, compared to 15.3% at December 31, 2021.

The Company recorded no net charge-offs during the fourth quarter of 2022, the third quarter of 2022, and the fourth quarter of 2021. As of December 31, 2022, the Company had no non-accrual loans, no loans more than 30 days past due, and no other real estate owned assets.

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At December 31, 2022, the allowance for loan losses was $20.2 million or 1.13% of outstanding loans, net of unearned income, compared to $20.0 million or 1.20% of outstanding loans, net of unearned income, at September 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. As of December 31, 2022, the Company continued to account for its allowance using an incurred loss model. Beginning on January 1, 2023, and in all subsequent periods, the Company will determine its allowance using the current expected credit losses standard (ASC 326).  

Income Statement Review

Quarterly Results

Net income for the fourth quarter of 2022 increased $655 thousand or 8.7% to $8.2 million compared to $7.5 million for the fourth quarter of 2021.

Net interest income for the fourth quarter of 2022 increased $536 thousand or 3.2% compared to the fourth quarter of 2021, driven primarily by higher yields on interest-earning assets and growth in the Company’s loan and investment portfolios. The yield on interest earning assets was 4.10% for the fourth quarter of 2022 compared to 3.56% 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 and deposits in banks as a result of increases in interest rates during the year. The cost of interest-bearing liabilities was 1.53% for the fourth quarter of 2022 compared to 0.48% for the same quarter of the prior year. The increase in the cost of interest-bearing liabilities was primarily due to a 1.08% increase in the cost of interest-bearing deposits as a result of the repricing of the Company’s time deposits coupled with an increase in rates offered on money market, NOW, and savings deposit accounts during the year. The annualized net interest margin for the fourth quarter of 2022 was 3.05% as compared to 3.23% 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 an increase in yields on the Company’s loan and investment portfolios.

The Company recorded a $175 thousand provision for loan losses for the fourth quarter of 2022, compared to a $325 thousand provision for the fourth 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 $205 thousand or 40.0% during the fourth quarter of 2022 compared to the fourth quarter of 2021. The increase in non-interest income was primarily due to swap fee income of $127 thousand recognized during the quarter on the Company’s first back-to-back loan interest rate swap (“swap”). The Company enters into swaps with commercial loan customers to provide a facility for customers to mitigate the fluctuations in the variable rate on the respective loans. These swaps are matched in exact offsetting terms to swaps that the Company enters into with an outside third party. The swaps are reported at fair value in other assets or other liabilities in the Consolidated Balance Sheet. The increase in non-interest income was also attributable to mark-to-market adjustments of $35 thousand resulting from an increase in value of investments related to the Company’s nonqualified deferred compensation plan, and increases in services charges and fees on deposit accounts. The increase was partially offset by modest decreases in insurance commissions and bank owned life insurance (“BOLI”) income.

Non-interest expense decreased $230 thousand or 3.0% for the three months ended December 31, 2022 compared to the three months ended December 31, 2021. The decrease in non-interest expense was primarily due to decreases in salaries and employee benefits expense, occupancy expense, furniture and equipment expense, marketing expense, and a release in unfunded commitment reserves during the quarter. The decrease in salaries and employee benefits was driven by a decrease in incentive and deferred compensation expense when compared to the prior year quarter due to changes in staffing. Two of the Company’s former senior executive vice presidents became advisors to the Chief Executive Officer effective June 1, 2022. The decrease in occupancy expense of premises was due to a decrease in office rent as a result of the renegotiation of certain leases. The decrease in furniture and equipment expense was due to lower depreciation expense on fixed assets. The decrease in marketing expense was primarily due to lower marketing vendor related expenses incurred. The release in unfunded commitment reserves was primarily due to a decrease in unfunded commitment balances year-over-year as a result of credit line utilization. The decrease in non-

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interest expense was partially offset by increases in data processing fees and professional service fees. The increase in data processing fees was due to new investments in technology solutions to support our operations. The Company regularly evaluates technology and invests in applications enabling greater efficiencies or customer experience. The increase in professional service fees was due to expenses incurred in conjunction with the back-to-back loan interest rate swap, as well as increased vendor services supporting our public company reporting requirements that did not exist in the prior year.

For the three months ended December 31, 2022, annualized non-interest expense to average assets was 1.27% compared to 1.44% for the three months ended December 31, 2021. The decrease was primarily due to lower salaries and employee benefit expense coupled with continued cost consciousness.

For the three months ended December 31, 2022, the annualized efficiency ratio was 40.9% compared to 43.9% for the three months ended December 31, 2021. The decrease was primarily due to increases in net interest income and non-interest income as well as a decrease in non-interest expense.

Year-to-Date Results

Net income for the year ended December 31, 2022 increased $6.3 million or 24.9% to $31.8 million compared to $25.5 million for the year ended December 31, 2021.  The results for the year ended December 31, 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 year ended December 31, 2022 increased $4.5 million or 6.8% compared to the year ended December 31, 2021 and was driven primarily by growth in the Company’s loan and investment portfolios. The yield on interest earning assets was 3.77% for the year ended December 31, 2022 compared to 3.69% for the same period in 2021. The increase in yield on interest earning assets was primarily due to an increase in interest rates during the year. The cost of interest-bearing liabilities was 0.89% for the year ended December 31, 2022 compared to 0.59% for the same period of the prior year. The increase in the cost of interest-bearing liabilities was primarily due to increases in the cost of interest-bearing deposits as a result of an increase in rates offered on time, savings, money market, and NOW deposit accounts during the second half of 2022. Net interest margin for the year ended December 31, 2022 was 3.16% as compared to 3.29% for the same period of the prior year. The decrease in net interest margin was primarily due to increases in the cost of interest-bearing deposits and accelerated recognition of prior debt issuance costs associated with the refinancing of the subordinated debt, which was partially offset by an increase in yield on all interest-earning assets.

The Company recorded a $175 thousand provision for loan losses for the year ended December 31, 2022, compared to a $3.1 million provision for the year ended December 31, 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 $28 thousand or 1.6% during the year ended December 31, 2022 compared to the year ended December 31, 2021. The decrease in non-interest income was primarily due to mark-to-market adjustments of $(548) 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 interest rate swap fee income recognized, as well as increases in insurance commissions and interchange and other fee income due to higher production and increased customer activity, respectively. During the year ended December 31, 2021, the Company also realized a $10 thousand gain on a called security. Excluding the impacts of the gain on the called security, mark-to-market adjustments, and BOLI related benefit claim, non-interest income increased $373 thousand or 24.6%.

Non-interest expense decreased $388 thousand or 1.2% during the year ended December 31, 2022 compared to the year ended December 31, 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, FDIC insurance fees, and salaries and benefit expense. 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. The decrease in salaries and benefit expense was primarily due to lower accruals related to deferred compensation and employer health insurance

4


fees. The decrease in non-interest expense was 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 year ended December 31, 2022, non-interest expense to average assets was 1.40% compared to 1.58% for the year ended December 31, 2021. The decrease was primarily due to non-recurring legal and professional fees incurred in 2021 as well as decreases in marketing expense and FDIC insurance premiums.

For the year ended December 31, 2022, the efficiency ratio was 44.2% compared to 47.7% for the year ended December 31, 2021. The decrease was primarily due to the increase in net interest income coupled with a decrease in non-interest expense. The decrease was partially offset by a modest 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 $2.35 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 Twelve Months Ended

December 31,

December 31,

  

2022

    

2021

    

2022

    

2021

Selected Balance Sheet Data

Cash and cash equivalents

$

61,599

$

105,799

$

61,599

$

105,799

Total investment securities

463,531

351,629

463,531

351,629

Loans, net of unearned income

1,789,508

1,666,469

1,789,508

1,666,469

Allowance for loan losses

(20,208)

(20,032)

(20,208)

(20,032)

Total assets

2,348,235

2,149,309

2,348,235

2,149,309

Non-interest bearing demand deposits

476,697

488,838

476,697

488,838

Interest bearing deposits

1,591,043

1,392,715

1,591,043

1,392,715

Total deposits

2,067,740

1,881,553

2,067,740

1,881,553

Shareholders' equity

212,800

208,470

212,800

208,470

Summary Results of Operations

Interest income

$

23,557

$

18,703

$

84,066

$

74,119

Interest expense

6,052

1,734

13,645

8,211

Net interest income

17,505

16,969

70,421

65,908

Provision for loan losses

175

325

175

3,105

Net interest income after provision for loan losses

17,330

16,644

70,246

62,803

Non-interest income

718

513

1,691

1,719

Non-interest expense

7,449

7,679

31,874

32,262

Income before income taxes

10,599

9,478

40,063

32,260

Net income

8,202

7,547

31,803

25,461

Per Share Data and Shares Outstanding

Earnings per share - basic

$

0.58

$

0.55

$

2.27

$

1.87

Earnings per share - diluted

$

0.58

$

0.54

$

2.25

$

1.83

Book value per share

$

15.09

$

15.17

$

15.09

$

15.17

Book value per share, excluding accumulated other comprehensive loss (1)

$

17.13

$

15.20

$

17.13

$

15.20

Weighted average common shares (basic)

14,019,429

13,614,760

13,931,841

13,581,586

Weighted average common shares (diluted)

14,131,352

13,914,724

14,084,427

13,879,595

Common shares outstanding at end of period

14,098,986

13,745,598

14,098,986

13,745,598

Performance Ratios

Return on average assets (annualized)

1.40

%

1.41

%

1.40

%

1.25

%

Return on average equity (annualized)

15.65

%

14.52

%

15.18

%

12.90

%

Net interest margin

3.05

%

3.23

%

3.16

%

3.29

%

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

0.12

%

0.10

%

0.07

%

0.08

%

Non-interest expense to average assets (annualized)

1.27

%

1.44

%

1.40

%

1.58

%

Efficiency ratio

40.9

%

43.9

%

44.2

%

47.7

%

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 (2)

1.13

%

1.20

%

1.13

%

1.20

%

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

- -

%

- -

%

- -

%

- -

%

Loans 30-89 days past due and accruing interest

$

- -

$

- -

$

- -

$

- -

Non-accrual loans

- -

- -

- -

- -

Other real estate owned

- -

- -

- -

- -

Non-performing assets (3)

- -

- -

- -

- -

Troubled debt restructurings (total)

418

549

418

549

Performing in accordance with modified terms

418

549

418

549

Not performing in accordance with modified terms

- -

- -

- -

- -

Capital Ratios (Bank Level)

Equity / assets

10.0

%

10.8

%

10.0

%

10.8

%

Total risk-based capital ratio

15.6

%

15.3

%

15.6

%

15.3

%

Tier 1 risk-based capital ratio

14.4

%

14.0

%

14.4

%

14.0

%

Leverage ratio

11.3

%

11.0

%

11.3

%

11.0

%

Common equity tier 1 ratio

14.4

%

14.0

%

14.4

%

14.0

%

Other Information

Number of full time equivalent employees

139

138

139

138

# Full service branch offices

8

8

8

8

# Loan production or limited service branch offices

1

1

1

1


(1)

Book value per share excluding accumulated other comprehensive loss, is a non-GAAP financial measure. It is calculated by dividing the total of shareholders’ equity less the entirety of the balance of our accumulated other comprehensive loss by the number of shares outstanding as of the measurement date.

(2)

The allowance for loan losses to total loans, excluding PPP loans, net of unearned income of $132 thousand, was 1.13% at December 31, 2022. The allowance for loan losses to total loans, excluding PPP loans, net of unearned income of $67.7 million, was 1.25% at December 31, 2021.  PPP loans received no allocations in the allowance estimate due to the underlying guarantees.

(3)

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

December 31,

September 30,

December 31,

Last Three

Year Over

  

2022

  

2022

2021

  

Months

Year

Assets

(Unaudited)

(Unaudited)

(Unaudited)

    

    

Cash and due from banks

$

6,583

$

14,957

$

2,920

(56.0)

%

125.4

%

Interest-bearing deposits in banks

55,016

59,799

102,879

(8.0)

%

(46.5)

%

Securities available-for-sale, at fair value

357,576

366,546

239,300

(2.4)

%

49.4

%

Securities held-to-maturity, fair value of $81,161, $81,765, and $103,258 at 12/31/2022, 9/30/2022, and 12/31/2021, respectively.

99,415

100,598

105,509

(1.2)

%

(5.8)

%

Restricted securities, at cost

4,425

4,421

4,951

0.1

%

(10.6)

%

Equity securities, at fair value

2,115

1,913

1,869

10.6

%

13.2

%

Loans, net of unearned income

1,789,508

1,725,114

1,666,469

3.7

%

7.4

%

Allowance for loan losses

(20,208)

(20,032)

(20,032)

0.9

%

0.9

%

Net loans

1,769,300

1,705,082

1,646,437

3.8

%

7.5

%

Bank premises and equipment, net

1,219

1,331

1,620

(8.4)

%

(24.8)

%

Accrued interest receivable

5,531

4,744

4,943

16.6

%

11.9

%

Bank owned life insurance

21,170

21,071

20,998

0.5

%

0.8

%

Right of use assets

4,611

3,936

4,913

17.1

%

(6.1)

%

Other assets

21,274

21,142

12,970

0.6

%

64.0

%

Total assets

$

2,348,235

$

2,305,540

$

2,149,309

1.9

%

9.3

%

Liabilities and Shareholders' Equity

Liabilities

Deposits:

Non-interest bearing demand deposits

$

476,697

$

535,186

$

488,838

(10.9)

%

(2.5)

%

Interest-bearing demand deposits

691,945

705,593

633,901

(1.9)

%

9.2

%

Savings deposits

95,241

102,909

101,376

(7.5)

%

(6.1)

%

Time deposits

803,857

719,653

657,438

11.7

%

22.3

%

Total deposits

2,067,740

2,063,341

1,881,553

0.2

%

9.9

%

Federal funds purchased

25,500

- -

- -

N/M

N/M

Federal Home Loan Bank advances

- -

- -

18,000

N/M

N/M

Subordinated debt

24,624

24,603

24,728

0.1

%

(0.4)

%

Accrued interest payable

1,035

643

843

61.0

%

22.8

%

Lease liabilities

4,858

4,186

5,182

16.1

%

(6.3)

%

Other liabilities

11,678

10,555

10,533

10.6

%

10.9

%

Total liabilities

2,135,435

2,103,328

1,940,839

1.5

%

10.0

%

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, 14,098,986 at 12/31/2022 including 55,185 unvested shares, 14,070,080 shares at 9/30/2022 including 58,046 unvested shares and 13,745,598 at 12/31/2021, including 75,826 unvested shares

141

140

137

0.7

%

2.9

%

Additional paid-in capital

94,726

94,560

91,107

0.2

%

4.0

%

Retained earnings

146,630

138,428

117,626

5.9

%

24.7

%

Accumulated other comprehensive loss

(28,697)

(30,916)

(400)

N/M

N/M

Total shareholders' equity

212,800

202,212

208,470

5.2

%

2.1

%

Total liabilities and shareholders' equity

$

2,348,235

$

2,305,540

$

2,149,309

1.9

%

9.3

%

7


John Marshall Bancorp, Inc.

Consolidated Statements of Income

(Dollar amounts in thousands, except per share data)

Three Months Ended

Twelve Months Ended

December 31,

December 31,

  

2022

  

2021

  

% Change

2022

  

2021

  

% Change

(Unaudited)

(Unaudited)

    

(Unaudited)

(Unaudited)

    

Interest and Dividend Income

Interest and fees on loans

$

20,541

$

17,340

18.5

%

$

74,281

$

69,415

7.0

%

Interest on investment securities, taxable

2,337

1,225

90.8

%

7,934

4,146

91.4

%

Interest on investment securities, tax-exempt

30

30

0.0

%

120

120

0.0

%

Dividends

64

67

(4.5)

%

249

263

(5.3)

%

Interest on deposits in banks

585

41

N/M

1,482

175

N/M

Total interest and dividend income

23,557

18,703

26.0

%

84,066

74,119

13.4

%

Interest Expense

Deposits

5,688

1,331

327.3

%

11,778

6,599

78.5

%

Federal funds purchased

15

- -

N/M

15

- -

N/M

Federal Home Loan Bank advances

- -

31

N/M

42

125

(66.4)

%

Subordinated debt

349

372

(6.2)

%

1,810

1,487

21.7

%

Total interest expense

6,052

1,734

249.0

%

13,645

8,211

66.2

%

Net interest income

17,505

16,969

3.2

%

70,421

65,908

6.8

%

Provision for Loan Losses

175

325

(46.2)

%

175

3,105

(94.4)

%

Net interest income after provision for loan losses

17,330

16,644

4.1

%

70,246

62,803

11.9

%

Non-interest Income

Service charges on deposit accounts

84

74

13.5

%

324

544

(40.4)

%

Bank owned life insurance

99

102

(2.9)

%

544

411

32.4

%

Other service charges and fees

187

138

35.5

%

656

195

236.4

%

Gains on securities

- -

- -

N/M

- -

10

N/M

Insurance commissions

70

79

(11.4)

%

382

284

34.5

%

Other income (loss)

278

120

131.7

%

(215)

275

N/M

Total non-interest income

718

513

40.0

%

1,691

1,719

(1.6)

%

Non-interest Expenses

Salaries and employee benefits

4,436

4,765

(6.9)

%

20,190

20,411

(1.1)

%

Occupancy expense of premises

458

480

(4.6)

%

1,893

1,985

(4.6)

%

Furniture and equipment expenses

336

363

(7.4)

%

1,325

1,436

(7.7)

%

Other expenses

2,219

2,071

7.1

%

8,466

8,430

0.4

%

Total non-interest expense

7,449

7,679

(3.0)

%

31,874

32,262

(1.2)

%

Income before income taxes

10,599

9,478

11.8

%

40,063

32,260

24.2

%

Income tax Expense

2,397

1,931

24.1

%

8,260

6,799

21.5

%

Net income

$

8,202

$

7,547

8.7

%

$

31,803

$

25,461

24.9

%

Earnings Per Share

Basic

$

0.58

$

0.55

5.5

%

$

2.27

$

1.87

21.5

%

Diluted

$

0.58

$

0.54

7.4

%

$

2.25

$

1.83

22.9

%

8


John Marshall Bancorp, Inc.

Historical Trends - Quarterly Financial Data (Unaudited)

(Dollar amounts in thousands, except per share data)

2022

2021

  

December 31

September 30

June 30

    

March 31

    

December 31

    

September 30

    

June 30

    

March 31

    

Profitability for the Quarter:

Interest income

$

23,557

$

21,208

$

19,555

$

19,745

$

18,703

$

18,042

$

18,627

$

18,747

Interest expense

6,052

3,516

2,247

1,829

1,734

1,876

2,136

2,465

Net interest income

17,505

17,692

17,308

17,916

16,969

16,166

16,491

16,282

Provision for loan losses

175

- -

- -

- -

325

325

90

2,365

Non-interest income

718

450

109

414

513

325

417

464

Non-interest expense

7,449

7,958

7,681

8,786

7,679

7,623

9,067

7,893

Income before income taxes

10,599

10,184

9,736

9,544

9,478

8,543

7,751

6,488

Income tax expense

2,397

2,139

1,854

1,870

1,931

1,782

1,672

1,414

Net income

$

8,202

$

8,045

$

7,882

$

7,674

$

7,547

$

6,761

$

6,079

$

5,074

Financial Performance:

Return on average assets (annualized)

1.40

%

1.38

%

1.41

%

1.40

%

1.41

%

1.30

%

1.20

%

1.05

%

Return on average equity (annualized)

15.65

%

15.07

%

15.28

%

14.76

%

14.52

%

13.35

%

12.64

%

10.89

%

Net interest margin

3.05

%

3.10

%

3.16

%

3.34

%

3.23

%

3.15

%

3.32

%

3.44

%

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

0.12

%

0.08

%

0.02

%

0.08

%

0.10

%

0.06

%

0.08

%

0.10

%

Non-interest expense to average assets (annualized)

1.27

%

1.36

%

1.38

%

1.61

%

1.44

%

1.46

%

1.79

%

1.64

%

Efficiency ratio

40.9

%

43.9

%

44.1

%

47.9

%

43.9

%

46.2

%

53.6

%

47.1

%

Per Share Data:

Earnings per share - basic

$

0.58

$

0.57

$

0.56

$

0.55

$

0.55

$

0.50

$

0.45

$

0.37

Earnings per share - diluted

$

0.58

$

0.57

$

0.56

$

0.55

$

0.54

$

0.48

$

0.44

$

0.37

Book value per share

$

15.09

$

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)

14,019,429

13,989,414

13,932,256

13,783,034

13,614,760

13,580,538

13,572,779

13,557,779

Weighted average common shares (diluted)

14,131,352

14,108,286

14,085,160

13,991,692

13,914,724

13,883,104

13,868,147

13,809,751

Common shares outstanding at end of period

14,098,986

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

$

84

$

79

$

84

$

77

$

74

$

70

$

60

$

58

Bank owned life insurance

99

255

95

95

102

102

100

107

Other service charges and fees

187

175

157

137

138

120

115

104

Gains on securities

- -

- -

- -

- -

- -

- -

- -

10

Insurance commissions

70

47

44

221

79

28

22

155

Other income (loss)

278

(106)

(271)

(116)

120

5

120

30

Total non-interest income

$

718

$

450

$

109

$

414

$

513

$

325

$

417

$

464

Non-interest Expenses:

Salaries and employee benefits

$

4,436

$

5,072

$

4,655

$

6,027

$

4,765

$

4,977

$

5,680

$

4,989

Occupancy expense of premises

458

461

482

493

480

484

514

507

Furniture and equipment expenses

336

323

341

325

363

373

378

322

Other expenses

2,219

2,102

2,203

1,941

2,071

1,789

2,495

2,075

Total non-interest expenses

$

7,449

$

7,958

$

7,681

$

8,786

$

7,679

$

7,623

$

9,067

$

7,893

Balance Sheets at Quarter End:

Total loans

$

1,789,508

$

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

(20,208)

(20,032)

(20,031)

(20,031)

(20,032)

(19,706)

(19,381)

(19,381)

Investment securities

463,531

473,478

473,914

409,692

351,629

348,742

306,030

219,106

Interest-earning assets

2,308,055

2,258,822

2,274,968

2,217,553

2,121,407

2,062,000

2,032,235

1,979,848

Total assets

2,348,235

2,305,540

2,316,374

2,249,609

2,149,309

2,095,504

2,065,895

2,009,988

Total deposits

2,067,740

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

1,641,167

1,552,758

1,581,017

1,530,133

1,435,443

1,416,396

1,379,031

1,388,286

Total shareholders' equity

212,800

202,212

207,530

204,855

208,470

202,222

195,246

188,904

Quarterly Average Balance Sheets:

Total gross loans

$

1,759,747

$

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

(20,042)

(20,032)

(20,031)

(20,032)

(19,889)

(19,525)

(19,530)

(17,816)

Investment securities

468,956

488,860

447,688

376,608

356,007

325,027

256,671

180,180

Interest-earning assets

2,289,061

2,277,325

2,204,709

2,183,897

2,090,052

2,038,384

1,996,555

1,922,835

Total assets

2,330,307

2,314,825

2,240,119

2,216,131

2,121,980

2,069,143

2,027,364

1,954,088

Total deposits

2,079,161

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

1,566,902

1,547,766

1,504,574

1,505,854

1,419,679

1,384,867

1,381,583

1,350,742

Total shareholders' equity

207,906

212,147

206,967

210,900

206,237

200,990

192,918

188,995

Financial Measures:

Average equity to average assets

8.9

%

9.2

%

9.2

%

9.5

%

9.7

%

9.7

%

9.5

%

9.7

%

Investment securities to earning assets

20.1

%

21.0

%

20.8

%

18.5

%

16.6

%

16.9

%

15.1

%

11.1

%

Loans to earning assets

77.5

%

76.4

%

74.4

%

73.6

%

78.6

%

77.7

%

77.1

%

81.1

%

Loans to assets

76.2

%

74.8

%

73.1

%

72.5

%

77.5

%

76.5

%

75.9

%

79.9

%

Loans to deposits

86.5

%

83.6

%

82.8

%

82.3

%

88.6

%

87.2

%

86.3

%

91.2

%

Capital Ratios (Bank Level):

Equity / assets

10.0

%

9.7

%

9.9

%

10.2

%

10.8

%

10.8

%

10.6

%

10.5

%

Total risk-based capital ratio

15.6

%

15.4

%

15.1

%

15.4

%

15.3

%

15.2

%

15.0

%

14.6

%

Tier 1 risk-based capital ratio

14.4

%

14.3

%

14.0

%

14.2

%

14.0

%

14.0

%

13.9

%

13.4

%

Leverage ratio

11.3

%

11.0

%

11.0

%

10.8

%

11.0

%

10.8

%

10.7

%

10.8

%

Common equity tier 1 ratio

14.4

%

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

December 31

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

  

$ Amount

% of Total

    

Commercial business loans

$

44,788

2.5

%

$

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

136

0.0

%

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

366,131

20.5

%

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

411,055

23.0

%

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

662,769

37.1

%

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

195,027

11.0

%

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

89,227

5.0

%

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

947,023

53.1

%

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

426,841

23.9

%

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

529

0.0

%

585

0.0

%

651

0.0

%

513

0.0

%

586

0.0

%

631

0.0

%

916

0.1

%

793

0.0

%

Total loans

$

1,785,448

100.0

%

$

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

(20,208)

(20,032)

(20,031)

(20,031)

(20,032)

(19,706)

(19,381)

(19,381)

Net deferred loan costs (fees)

4,060

3,183

2,915

2,780

915

347

(486)

(1,162)

Net loans

$

1,769,300

$

1,705,082

$

1,672,621

$

1,611,229

$

1,646,437

$

1,582,671

$

1,547,731

$

1,586,402

2022

2021

December 31

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

$ Amount

% of Total

Non-interest bearing demand deposits

$

476,697

23.1

%

$

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)

253,148

12.3

%

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)

438,797

21.2

%

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

95,241

4.6

%

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

314,738

15.2

%

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

89,247

4.3

%

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

22,163

1.1

%

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

25,757

1.2

%

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

351,952

17.0

%

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

$

2,067,740

100.0

%

$

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 funds purchased

$

25,500

50.9

%

$

- -

0.0

%

$

- -

0.0

%

$

- -

0.0

%

$

- -

0.0

%

$

- -

0.0

%

$

- -

0.0

%

$

- -

0.0

%

Federal Home Loan Bank advances

- -

0.0

%

- -

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

24,624

49.1

%

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

$

50,124

100.0

%

$

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

$

2,117,864

$

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)

$

1,693,625

80.9

%

$

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)

399,615

19.1

%

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

$

2,093,240

100.0

%

$

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)

Twelve Months Ended December 31, 2022

Twelve Months Ended December 31, 2021

 

    

    

Interest Income / 

    

Average 

    

    

Interest Income / 

    

Average 

 

Average Balance

Expense

Rate

Average Balance

Expense

Rate

 

Assets:

 

  

 

  

 

  

 

  

 

  

 

  

Securities:

 

  

 

  

 

  

 

  

 

  

 

  

Taxable

$

440,899

 

$

8,183

 

1.86

%  

$

275,071

 

$

4,409

 

1.60

%

Tax-exempt(1)

 

5,001

 

152

 

3.04

%  

 

5,007

 

152

 

3.04

%

Total securities

$

445,900

$

8,335

 

1.87

%  

$

280,078

$

4,561

 

1.63

%

Loans, net of unearned income(2):

 

  

 

  

 

  

 

  

 

  

 

Taxable

 

1,652,940

 

73,497

 

4.45

%  

 

1,577,418

 

68,685

 

4.35

%

Tax-exempt(1)

 

24,211

 

993

 

4.10

%  

 

19,631

 

924

 

4.71

%

Total loans, net of unearned income

$

1,677,151

$

74,490

 

4.44

%  

$

1,597,049

$

69,609

 

4.36

%

Interest-bearing deposits in other banks

$

116,092

$

1,482

 

1.28

%  

$

135,360

$

175

 

0.13

%

Total interest-earning assets

$

2,239,143

$

84,307

 

3.77

%  

$

2,012,487

$

74,345

 

3.69

%

Total non-interest earning assets

 

36,624

 

  

 

31,132

 

  

 

  

Total assets

$

2,275,767

 

  

$

2,043,619

 

  

 

  

Liabilities & Shareholders’ Equity:

 

  

 

  

 

  

 

  

 

  

 

  

Interest-bearing deposits

 

  

 

  

 

  

 

  

 

  

 

  

NOW accounts

$

311,950

$

1,359

 

0.44

%  

$

262,319

$

798

 

0.30

%

Money market accounts

 

395,369

 

3,340

 

0.84

%  

 

337,993

1,256

 

0.37

%

Savings accounts

 

108,178

 

504

 

0.47

%  

 

83,032

300

 

0.36

%

Time deposits

 

682,674

 

6,575

 

0.96

%  

 

657,986

4,245

 

0.65

%

Total interest-bearing deposits

$

1,498,171

$

11,778

 

0.79

%  

$

1,341,330

$

6,599

 

0.49

%

Federal funds purchased

386

15

3.89

%  

0.00

%

Subordinated debt

 

26,754

 

1,810

 

6.77

%  

 

24,702

 

1,487

 

6.02

%

Other borrowed funds

 

6,175

 

42

 

0.68

%  

 

18,375

 

125

 

0.68

%

Total interest-bearing liabilities

$

1,531,486

$

13,645

 

0.89

%  

$

1,384,407

$

8,211

 

0.59

%

Demand deposits

 

518,284

 

  

 

448,723

 

  

 

  

Other liabilities

 

16,518

 

  

 

13,146

 

  

 

  

Total liabilities

$

2,066,288

 

  

$

1,846,276

 

  

 

  

Shareholders’ equity

$

209,479

 

  

$

197,343

 

  

 

  

Total liabilities and shareholders’ equity

$

2,275,767

 

  

$

2,043,619

 

  

 

  

  

 

  

 

Tax-equivalent net interest income and spread

$

70,662

2.88

%

$

66,134

3.10

%

Less: tax-equivalent adjustment

241

226

Net interest income

$

70,421

$

65,908

Tax-equivalent interest income/earnings assets

3.77

%

3.69

%

Interest expense/earning assets

0.61

%

0.40

%

Net interest margin(3)

3.16

%

3.29

%


(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 $241 thousand and $226 thousand in 2022 and 2021, respectively.
(2)The Company did not have any loans on non-accrual as of December 31, 2022 or December 31, 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 December 31, 2022

Three Months Ended December 31, 2021

 

    

    

Interest Income / 

    

Average 

    

    

Interest Income / 

    

Average 

 

Average Balance

Expense

Rate

Average Balance

Expense

Rate

 

Assets:

 

  

 

  

 

  

 

  

 

  

 

  

Securities:

 

  

 

  

 

  

 

  

 

  

 

  

Taxable

$

463,961

 

$

2,401

 

2.05

%  

$

350,997

 

$

1,292

 

1.46

%

Tax-exempt(1)

 

4,995

 

38

 

3.02

%  

 

5,010

 

38

 

3.01

%

Total securities

$

468,956

$

2,439

 

2.06

%  

$

356,007

$

1,330

 

1.48

%

Loans, net of unearned income(2):

 

  

 

  

 

  

 

  

 

  

 

Taxable

 

1,730,921

 

20,305

 

4.65

%  

 

1,606,103

 

17,152

 

4.24

%

Tax-exempt(1)

 

28,826

 

299

 

4.12

%  

 

23,021

 

239

 

4.12

%

Total loans, net of unearned income

$

1,759,747

$

20,604

 

4.65

%  

$

1,629,124

$

17,391

 

4.24

%

Interest-bearing deposits in other banks

$

60,358

$

585

 

3.85

%  

$

104,921

$

41

 

0.16

%

Total interest-earning assets

$

2,289,061

$

23,628

 

4.10

%  

$

2,090,052

$

18,762

 

3.56

%

Total non-interest earning assets

 

41,246

 

  

 

31,928

 

  

 

  

Total assets

$

2,330,307

 

  

$

2,121,980

 

  

 

  

Liabilities & Shareholders’ Equity:

 

  

 

  

 

  

 

  

 

  

 

  

Interest-bearing deposits

 

  

 

  

 

  

 

  

 

  

 

  

NOW accounts

$

271,306

$

530

 

0.78

%  

$

281,690

$

204

 

0.29

%

Money market accounts

 

412,682

 

1,824

 

1.75

%  

 

351,723

329

 

0.37

%

Savings accounts

 

103,542

 

220

 

0.84

%  

 

101,199

89

 

0.35

%

Time deposits

 

753,228

 

3,114

 

1.64

%  

 

642,346

709

 

0.44

%

Total interest-bearing deposits

$

1,540,758

$

5,688

 

1.46

%  

$

1,376,958

$

1,331

 

0.38

%

Federal funds purchased

1,533

15

3.88

%  

0.00

%

Subordinated debt

 

24,611

 

349

 

5.63

%  

 

24,720

 

372

 

5.97

%

Other borrowed funds

 

 

 

0.00

%  

 

18,001

 

31

 

0.68

%

Total interest-bearing liabilities

$

1,566,902

$

6,052

 

1.53

%  

$

1,419,679

$

1,734

 

0.48

%

Demand deposits

 

538,403

 

  

 

480,824

 

  

 

  

Other liabilities

 

17,096

 

  

 

15,240

 

  

 

  

Total liabilities

$

2,122,401

 

  

$

1,915,743

 

  

 

  

Shareholders’ equity

$

207,906

 

  

$

206,237

 

  

 

  

Total liabilities and shareholders’ equity

$

2,330,307

 

  

$

2,121,980

 

  

 

  

  

 

  

 

Tax-equivalent net interest income and spread

$

17,576

2.57

%

$

17,028

3.08

%

Less: tax-equivalent adjustment

71

59

Net interest income

$

17,505

$

16,969

Tax-equivalent interest income/earnings assets

4.10

%

3.56

%

Interest expense/earning assets

1.05

%

0.33

%

Net interest margin(3)

3.05

%

3.23

%


(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 $59 thousand in 2022 and 2021, respectively.
(2)The Company did not have any loans on non-accrual as of December 31, 2022 or December 31, 2021.
(3)The net interest margin has been calculated on a tax-equivalent basis.

12