John Marshall Bancorp, Inc. Reports Continued Net Interest Margin Growth Drives 27% Increase in Net Income - Core Deposits and Loans Expand and Asset Quality Remains Strong

Key Terms

net interest margin financial

Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.

efficiency ratio financial

A measure of how much a company spends to produce each dollar of revenue, usually shown as operating expenses divided by revenue and expressed as a percentage. Think of it as a household’s budget: a lower percentage means more of each dollar earned stays as profit, while a higher number means costs are eating into returns. Investors use it to judge cost control and compare how efficiently companies turn revenue into earnings, especially in banks and financial firms.

non-accrual financial

A non-accrual loan or asset is one for which a lender has stopped counting expected interest as income because the borrower is very late on payments or in serious financial trouble. For investors, non-accruals signal that future cash from interest is uncertain and that the lender may need to write down the loan’s value or set aside extra reserves, similar to a landlord who stops recording rent when a tenant stops paying.

allowance for loan credit losses financial

A bank’s allowance for loan credit losses is a reserve of money set aside to cover loans the lender expects may not be repaid. Think of it as a rainy‑day fund that reduces the reported value of loan assets and reflects management’s estimate of future loan losses; larger reserves can signal weaker borrower health or more conservative accounting, while smaller reserves can boost reported profits but increase risk if actual losses rise. Investors watch this number to gauge a lender’s credit risk, earnings quality, and how prepared it is for economic stress.

loan-to-value financial

Loan-to-value is the percentage that shows how large a loan is compared with the appraised value of the asset backing it, for example a house or other property. Investors care because a higher percentage means more of the asset’s value is borrowed — like buying a car with almost no down payment — which increases the chance of loss for lenders and can lead to higher interest rates, stricter terms, or greater risk for holders of related securities.

debt service coverage ratio financial

Debt service coverage ratio measures how many times a company's available cash flow can pay its scheduled debt payments (interest plus principal). Think of it like checking how many months of take-home pay it would take to cover your mortgage and loan bills; a higher number means a bigger cushion against missed payments. Investors use it to gauge credit risk, the likelihood of default, and whether a company can afford dividends or new borrowing.

subordinated debt financial

Subordinated debt is a type of loan that is paid back after other debts have been settled if a company encounters financial trouble. It is considered riskier for lenders because they have lower priority in getting repaid, similar to being last in line during a payout. For investors, this means higher potential returns in exchange for taking on more risk.

RESTON, Va.--(BUSINESS WIRE)-- John Marshall Bancorp, Inc. (Nasdaq: JMSB) (the “Company”), parent company of John Marshall Bank (the “Bank”), reported net income of $6.1 million for the quarter ended March 31, 2026 compared to $4.8 million for the quarter ended March 31, 2025, an increase of $1.3 million or 26.8%. Diluted earnings per common share were $0.43 for the quarter ended March 31, 2026 compared to $0.34 for the quarter ended March 31, 2025, an increase of 26.5%. Annualized return on average assets was 1.06% for the quarter ended March 31, 2026 compared to 0.87% for the quarter ended March 31, 2025. Annualized return on average equity was 9.19% for the quarter ended March 31, 2026 compared to 7.76% for the quarter ended March 31, 2025.

Selected Highlights

• Earnings Growth Momentum – Net income of $6.1 million for the quarter ended March 31, 2026 represented a 3.1% increase over the $5.9 million net income reported for the quarter ended December 31, 2025 or an annualized quarter-over-quarter increase of 12.7%. The quarter ended March 31, 2026 marked the seventh consecutive quarter of net income growth. Diluted earnings per common share were $0.43 for the quarter ended March 31, 2026 and represented a 2.4% increase over the $0.42 diluted earnings per common share reported for the quarter ended December 31, 2025 or an annualized quarter-over-quarter increase of 9.7%.
• Significant Increase in Net Interest Income - For the three months ended March 31, 2026, the Company reported net interest income of $16.5 million, a $2.4 million or 17.1% increase over the prior year first quarter.
• Continued Net Interest Margin Expansion - Net interest margin expanded for the eighth consecutive quarter. Net interest margin increased 29 basis points, from 2.58% for the first quarter of 2025 to 2.87% for the first quarter of 2026. Net interest margin grew 14 basis points when compared to 2.73% for the fourth quarter of 2025.
• Focused on Core Funding and Loan Growth - The Company remains focused on driving value through core funding growth. For the twelve months ended March 31, 2026, total deposits increased $65.6 million or 3.4%. For the twelve months ended March 31, 2026, non-interest bearing demand deposits increased $20.4 million or 4.7%. Non-interest bearing demand deposits grew $25.5 million or 5.9% from December 31, 2025 to March 31, 2026. Non-interest bearing demand deposits represented 23.1% of total deposits as of March 31, 2026, an increase from 21.9% as of December 31, 2025. For the twelve months ended March 31, 2026, gross loans increased $103.3 million or 5.5%.
• Positive Operating Leverage – Revenues (net interest income plus non-interest income) grew 15.0% for the quarter ended March 31, 2026 relative to the quarter ended March 31, 2025, while non-interest expense increased 8.2%, over the same period. This positive trend in operating leverage improved the efficiency ratio from 56.5% for the three months ended March 31, 2025 to 53.1% for the three months ended March 31, 2026.
• Strong Asset Quality – Overall credit quality of the loan portfolio remains exceptional. The Company recorded no charge-offs during the first quarter of 2026 and had no other real estate owned assets as of March 31, 2026. During the most recent quarter, management placed one U.S. Small Business Administration (“SBA”) 7(a) loan in the total amount of $984 thousand on non-accrual status, representing the Company’s only non-accrual loan as of March 31, 2026. The entire outstanding loan amount is fully guaranteed by the SBA. The Company has submitted the guaranty purchase to the SBA and expects to receive the full guarantee payment. This is the only non-accrual loan since the third quarter of 2019.
• Growing Book Value per Share and Dividends – Book value per share increased from $17.72 as of March 31, 2025 to $19.00 as of March 31, 2026, a 7.2% increase. On April 28, 2026, the Company’s Board of Directors declared a quarterly cash dividend of $0.09 per share on the Company’s common stock. The dividend is payable on June 3, 2026 to shareholders of record at the close of business on May 13, 2026. The annualized quarterly cash dividend represents a 20% increase over the 2025 annual cash dividend.
• Robust Capitalization – Each of the Bank’s regulatory capital ratios remained well in excess of the regulatory well-capitalized thresholds as of March 31, 2026. During the three months ended March 31, 2026, the Company repurchased 103,507 shares of its common stock at a weighted average price of $19.69.

Chris Bergstrom, President and Chief Executive Officer, commented, “The first quarter of 2026 marks the eighth consecutive quarter of net interest margin improvement. Of the 29 basis points of margin improvement over the last year, 14 basis points of that increase occurred during the first quarter of 2026. Increased margin and $103 million in loan growth over the last twelve months enabled the Company to grow both net income and earnings per share by 27%. Our asset quality remains outstanding. We expect the SBA to pay their guarantee and resolve our one non-accruing loan. With 16.5% total risk-based capital, we have the requisite equity to grow loans at appropriate risk-adjusted returns. Alternatively, we have ample excess capital to build upon the 103,000 shares we repurchased during the first quarter. Our priorities remain unchanged. We continue to invest in technology and personnel to cultivate new relationships and deepen existing ones. We remain focused on delivering tailored banking services and exceptional client experiences. As demonstrated by the nearly 23% increase in our share price from March 31, 2025 to March 31, 2026 and our increased quarterly cash dividend rate, we believe our balance sheet allows us to focus on continued growth, and drive increased returns and shareholder value.”

Balance Sheet, Liquidity and Credit Quality

Total assets were $2.35 billion at March 31, 2026, $2.33 billion at December 31, 2025, and $2.27 billion at March 31, 2025. Total assets increased $19.8 million or 3.4% annualized since December 31, 2025 and $79.9 million or 3.5% from March 31, 2025.

Total loans, net of unearned income, declined $1.6 million or 0.3% annualized to $1.97 billion at March 31, 2026 compared to $1.98 billion at December 31, 2025 and increased $103.3 million or 5.5% from $1.87 billion at March 31, 2025. The increase in loans over the preceding twelve months was primarily attributable to growth in construction & development loans and residential mortgage loans. Refer to the Loan, Deposit and Borrowing Detail table for further information.

The carrying value of the Company’s fixed income securities portfolio was $213.8 million at March 31, 2026, $212.3 million at December 31, 2025, and $215.6 million at March 31, 2025. During the most recent quarter, the Company purchased seven fixed income securities, designated as available-for-sale, with the total carrying amount of $15.0 million and a weighted average purchase yield of 4.08%. The current quarter’s maturities had an average yield of 2.07%. As of March 31, 2026, 95.3% of our bond portfolio carried the implied guarantee of the United States government or one of its agencies. At March 31, 2026, 70.6% of the fixed income portfolio was invested in amortizing bonds, which provides the Company with a source of steady cash flow. At March 31, 2026, the fixed income portfolio had an estimated weighted average life of 3.9 years. The available-for-sale portfolio comprised approximately 61% of the fixed income securities portfolio and had a weighted average life of 3.2 years at March 31, 2026. The held-to-maturity portfolio comprised approximately 39% of the fixed income securities portfolio and had a weighted average life of 4.9 years at March 31, 2026.

The Company did not have an allowance for credit losses on held-to-maturity securities as of March 31, 2026 or December 31, 2025. As of March 31, 2026, 93.1% of our held-to-maturity portfolio carried the implied guarantee of the United States government or one of its agencies.

The Company’s balance sheet remains highly liquid. The Company’s liquidity position, defined as the sum of cash, unencumbered securities and available secured borrowing capacity, totaled $881.0 million as of March 31, 2026 compared to $827.0 million as of December 31, 2025 and represented 37.5% and 35.5% of total assets, respectively. In addition to available secured borrowing capacity, the Bank had available federal funds lines of $110.0 million at March 31, 2026.

Total deposits increased $15.4 million or 3.2% annualized to $1.99 billion at March 31, 2026 compared to $1.97 billion at December 31, 2025, and increased $65.6 million or 3.4% from $1.92 billion at March 31, 2025. During the most recent quarter, total non-interest bearing deposits increased $25.5 million or 23.9% annualized when compared to December 31, 2025, while total interest-bearing deposits declined $10.0 million or 2.6% annualized over the same period. As further detailed in the tables included in this release, core funding sources have increased $15.7 million, while wholesale funding sources have decreased $0.2 million since December 31, 2025. Detail on the deposit activity can be seen in the Loan, Deposit and Borrowing Detail table. As of March 31, 2026, the Company had $724.6 million of deposits that were not insured or not collateralized compared to $691.5 million and $660.8 million at December 31, 2025 and March 31, 2025, respectively.

Federal Home Loan Bank (“FHLB”) advances remained unchanged at $56.0 million as of March 31, 2026 compared to December 31, 2025 and March 31, 2025. During the first quarter of 2026, a $15.0 million maturing FHLB advance, carrying an interest rate of 4.14%, was replaced with the FHLB advance of the same principal amount and the interest rate of 3.61%. As of March 31, 2026, the FHLB advances had a weighted average fixed interest rate of 3.85%. In addition to outstanding FHLB advances, total borrowings as of March 31, 2026 included subordinated debt totaling $24.9 million.

Shareholders’ equity increased $15.1 million or 6.0% to $268.1 million at March 31, 2026 compared to $253.0 million at March 31, 2025. Book value per share was $19.00 as of March 31, 2026 compared to $17.72 as of March 31, 2025, an increase of 7.2%. The year-over-year change in book value per share was primarily due to the Company’s earnings over the previous twelve months and a decrease in accumulated other comprehensive loss, resulting from an increase in the market value of our available-for-sale investment portfolio. These increases were partially offset by cash dividends paid and a reduction of additional paid-in capital due to the Company’s share repurchases during the period.

The Bank’s capital ratios remained well above regulatory thresholds for well-capitalized banks. As of March 31, 2026, the Bank’s total risk-based capital ratio was 16.5%, compared to 16.3% at December 31, 2025, and 16.5% at March 31, 2025.

During the quarter ended March 31, 2026, the Company designated one commercial business SBA 7(a) loan as non-accrual. As of March 31, 2026, the total outstanding principal amount of the loan was $984 thousand and is fully guaranteed by the SBA. The Company charged-off the unguaranteed portion of the loan, in the total amount of $361 thousand, during the fourth quarter of 2025 and submitted a reimbursement claim to the SBA for the guaranteed portion. We expect the SBA to pay their guarantee and resolve our one non-accruing loan. During the three months ended March 31, 2026, the Company recorded no charge-offs and had no other real estate owned assets as of March 31, 2026.

At March 31, 2026, the allowance for loan credit losses was $20.0 million or 1.01% of outstanding loans, net of unearned income, compared to $19.8 million or 1.00% of outstanding loans, net of unearned income, at December 31, 2025. Asset quality remains strong. Management continues to assess credit risk exposure and monitor macroeconomic indicators that may impact borrower behavior and repayment capacity. Management believes the current allowance for credit losses is appropriate given the composition and performance of the loan portfolio.

At March 31, 2026, the allowance for credit losses on unfunded loan commitments was $1.2 million compared to $1.3 million at December 31, 2025, due to a lower amount of available loan commitments.

The Company believes its owner occupied and non-owner occupied commercial real estate portfolios continue to be of sound credit quality. The following table demonstrates their strong debt-service-coverage and loan-to-value ratios as of March 31, 2026.

Commercial Real Estate
	Owner Occupied							Non-owner Occupied
Asset Class	Weighted Average Loan to-Value(1)		Weighted Average Debt Service Coverage Ratio(2)		Number of Total Loans		Principal Balance(3) (Dollars in thousands)	Weighted Average Loan to-Value(1)		Weighted Average Debt Service Coverage Ratio(2)		Number of Total Loans		Principal Balance(3) (Dollars in thousands)
Warehouse & Industrial	54.0	%	3.2	x	55	$	68,336	47.5	%	2.2	x	46	$	110,270
Office	57.5	%	3.7	x	133		84,129	47.5	%	1.7	x	57		105,145
Retail	61.0	%	3.0	x	43		75,998	50.6	%	1.8	x	141		442,845
Church	24.2	%	2.3	x	17		25,852	70.8	%	3.0	x	2		5,590
Hotel/Motel	- -		- -		- -		- -	50.4	%	1.5	x	12		82,152
Other(4)	41.7	%	3.7	x	40		67,543	45.6	%	2.3	x	8		16,156
Total					288	$	321,858					266	$	762,158

(1)		Loan-to-value is determined at origination date and is divided by principal balance as of March 31, 2026.
(2)		The debt service coverage ratio (“DSCR”) is calculated from the primary source of repayment for the loan. Owner occupied DSCR’s are derived from cash flows from the owner occupant’s business, property and their guarantors, while non-owner occupied DSCR’s are derived from the net operating income of the property.
(3)		Principal balance excludes deferred fees or costs.
(4)		Other asset class is primarily comprised of schools, daycares and country clubs.

The following charts provide geographic detail and stated maturity summaries for the Company’s non-owner occupied office portfolio as of March 31, 2026:

Non-owner occupied office: Geography
Geography	Commitment (in thousands)		Percentage
Virginia	$68,064		64.0	%
Maryland	24,014		22.6	%
DC	14,246		13.4	%
Total	$106,324		100.0	%

Non-owner occupied office: Maturity
Maturity Year	Commitment (in thousands)		Percentage
2026	$2,728		2.6	%
2027	6,523		6.2	%
2028	14,063		13.2	%
2029	26,292		24.7	%
2030+	56,718		53.3	%
Total	$106,324		100.0	%

Income Statement Review

Quarterly Results

The Company reported net income of $6.1 million for the first quarter of 2026, an increase of $1.3 million or 26.8% when compared to $4.8 million for the first quarter of 2025.

For the three months ended March 31, 2026, net interest income increased $2.4 million or 17.1% to $16.5 million compared to $14.1 million for the three months ended March 31, 2025. During the same period, interest income grew $1.8 million or 6.5%, driven by higher interest income on loans, while interest expense declined by $0.6 million or 4.8%, predominantly due to lower interest expense on time deposits, interest-bearing checking accounts and money market accounts.

The annualized net interest margin for the first quarter of 2026 was 2.87% compared to 2.58% for the same period in 2025. The increase in net interest margin was primarily due to increases in average balances and yields of the loan portfolio, coupled with lower rates on interest-bearing deposits.

The cost of interest-bearing liabilities was 3.15% for the first quarter of 2026 compared to 3.48% for the same quarter in the prior year driven by the 34 basis points decline in rates on interest-bearing deposits. Rates declined across all deposit categories, most notably in money market accounts, time deposits and interest-bearing demand deposits, which declined by 37 basis points, 36 basis points, and 31 basis points, respectively. The yield on interest-earning assets was 5.07% for the first quarter of 2026 compared to 4.99% for the same period in 2025 primarily due to an eight basis point increase in loan yield coupled with a 28 basis point increase in securities yield. These increases were partially offset by a 76 basis points decrease in yield on interest-bearing deposits in other banks, as a result of three federal funds rate cuts totaling 75 basis points during the previous year. Average loans increased by $105.9 million between the three months ended March 31, 2026 and the three months ended March 31, 2025, which was primarily attributable to origination volume in the construction & development and residential mortgage loan portfolios subsequent to March 31, 2025.

The Company recorded a $23 thousand provision for credit losses for the first quarter of 2026 compared to $170 thousand for the first quarter of 2025. Provision for credit losses on funded loans totaled $143 thousand, while provision for credit losses on unfunded loan commitments was a recovery of $120 thousand during the three months ended March 31, 2026. The provision for credit losses on funded loans during the most recent quarter reflected the change in the Company’s loan portfolio mix quarter-over-quarter along with the updated forecasted economic variables utilized in the quantitative portion of the allowance calculation. Recovery of the provision for credit losses on unfunded loan commitments was due to lower amount of available loan commitments at March 31, 2026 as compared to December 31, 2025.

Non-interest income decreased $221 thousand or 43.8% during the first quarter of 2026 compared to the first quarter of 2025. This decrease was primarily attributable to a $149 thousand decrease in insurance commissions, in combination with a $37 thousand decrease in mark-to-market adjustments on investments related to the Company’s nonqualified deferred compensation plan and a $30 thousand decline in gains recorded on sales of the guaranteed portions of the SBA 7(a) loans.

Non-interest expense increased $0.7 million or 8.2% during the first quarter of 2026 compared to the first quarter of 2025 primarily resulting from an increase in salaries and employee benefits and higher other expenses. Salaries and employee benefits increased by $522 thousand, which was mainly related to increases in headcount within the Bank during the preceding twelve months and an annual salary merit increase in combination with lower direct loan origination costs when compared to the same period of the prior year. Salaries and employee benefit expense is reduced to account for the portion of salary costs incurred to originate a loan and are subsequently amortized into interest income to match the costs incurred with the economic benefit derived from originating a loan. Other expenses increased by $124 thousand mainly due to higher franchise tax and FDIC insurance, due to higher assessment bases, partially offset by lower marketing expense.

For the three months ended March 31, 2026, annualized non-interest expense to average assets was 1.54% compared to 1.50% for the three months ended March 31, 2025. This increase was primarily due to the growth in non-interest expense outpacing the growth in average assets during the period. For the three months ended March 31, 2026, the efficiency ratio declined to 53.1% compared to 56.5% for the three months ended March 31, 2025. The improvement in the efficiency ratio was due to a 15.0% growth in total revenue, which outpaced an 8.2% increase in non-interest expense over the period.

Return on average assets for the quarter ended March 31, 2026 was 1.06% and return on average equity was 9.19% compared to 0.87% and 7.76%, respectively, for the first quarter of 2025.

About John Marshall Bancorp, Inc.

John Marshall Bancorp, Inc. is the bank holding company for John Marshall Bank. The Bank is headquartered in Reston, Virginia with eight full-service branches located in Alexandria, Arlington, Loudoun, Prince William, Reston, and Tysons, Virginia, as well as Rockville, Maryland, and Washington, D.C. The Bank is dedicated to providing exceptional value, personalized service and convenience to local businesses and consumers in the Washington, D.C. Metropolitan area. The Bank offers a comprehensive line of sophisticated banking products and services 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 commercial real estate, trade contractors, government contractors, health services, nonprofits, private and charter schools, professional services, property management, community associations, and title and escrow services. Learn more at www.johnmarshallbank.com. Follow the Bank on LinkedIn at: https://www.linkedin.com/company/john-marshall-bank/.

Cautionary Note Regarding Forward-Looking Statements

In addition to historical information, this press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are based on certain assumptions and describe future plans, strategies and expectations of the Company. These forward-looking statements are generally identified by use of the words “believe,” “expect,” “intend,” “anticipate,” “estimate,” “project,” “will,” “should,” “may,” “view,” “opportunity,” “potential,” or similar expressions or expressions of confidence. Our ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on the operations of the Company and the Bank include, but are not limited to, the following: the concentration of our business in the Washington, D.C. metropolitan area and the effect of changes in the economic, political and environmental conditions on this market, including shutdowns and potential reductions in spending by the U.S. Government, and related reductions in the federal workforce; adequacy of our allowance for loan credit losses, allowance for unfunded commitments credit losses, and allowance for credit losses associated with our held-to-maturity and available-for-sale securities portfolios; deterioration of our asset quality; future performance of our loan portfolio with respect to recently originated loans; the level of prepayments on loans and mortgage-backed securities; liquidity, interest rate and operational risks associated with our business; changes in our financial condition or results of operations that reduce capital; our ability to maintain existing deposit relationships or attract new deposit relationships; changes in consumer spending, borrowing and savings habits; inflation and changes in interest rates that may reduce our margins or reduce the fair value of financial instruments; changes in the monetary and fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System; additional risks related to new lines of business, products, product enhancements or services; increased competition with other financial institutions and fintech companies; adverse changes in the securities markets; changes in the financial condition or future prospects of issuers of securities that we own; our ability to maintain an effective risk management framework; changes in laws or government regulations or policies affecting financial institutions, including changes in regulatory structure and in regulatory fees and capital requirements; compliance with legislative or regulatory requirements; results of examination of us by our regulators, including the possibility that our regulators may require us to increase our allowance for credit losses or to write-down assets or take similar actions; potential claims, damages, and fines related to litigation or government actions; the effectiveness of our internal controls over financial reporting and our ability to remediate any future material weakness in our internal controls over financial reporting; geopolitical conditions, including trade restrictions and tariffs, and acts or threats of terrorism and/or military conflicts, or actions taken by the U.S. or other governments in response to trade restrictions and tariffs, and acts or threats of terrorism and/or military conflicts, negatively impacting business and economic conditions in the U.S. and abroad; the effects of weather-related or natural disasters, which may negatively affect our operations and/or our loan portfolio and increase our cost of conducting business; public health events (such as the COVID-19 pandemic) and governmental and societal responses thereto; technological risks and developments, and cyber threats, attacks, or events; changes in accounting policies and practices; our ability to successfully capitalize on growth opportunities; our ability to retain key employees; deteriorating economic conditions, either nationally or in our market area, including higher unemployment and lower real estate values; implications of our status as a smaller reporting company and as an emerging growth company; and other factors discussed in the Company’s reports (such as our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K) filed with the Securities and Exchange Commission. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. The Company does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions which may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events. Annualized, pro forma, projected and estimated numbers are used for illustrative purposes only, are not forecasts and may not reflect actual results.

John Marshall Bancorp, Inc.
Financial Highlights (Unaudited)
(Dollar amounts in thousands, except per share data)
		At or For the Three Months Ended
			March 31
		2026			2025
Selected Balance Sheet Data
Cash and cash equivalents		$	150,193		$	169,060
Total investment securities			224,367			226,163
Loans, net of unearned income			1,973,743			1,870,472
Allowance for loan credit losses			19,983			18,826
Total assets			2,352,350			2,272,432
Non-interest bearing demand deposits			458,197			437,822
Interest-bearing deposits			1,529,531			1,484,353
Total deposits			1,987,728			1,922,175
Federal Home Loan Bank advances			56,000			56,000
Shareholders' equity			268,147			252,958
Summary Results of Operations
Interest income		$	29,082		$	27,305
Interest expense			12,573			13,208
Net interest income			16,509			14,097
Provision for credit losses			23			170
Net interest income after provision for credit losses			16,486			13,927
Non-interest income			284			505
Non-interest expense			8,923			8,248
Income before income taxes			7,847			6,184
Net income			6,101			4,810
Per Share Data and Shares Outstanding
Earnings per common share - basic		$	0.43		$	0.34
Earnings per common share - diluted		$	0.43		$	0.34
Book value per share		$	19.00		$	17.72
Weighted average common shares (basic)			14,125,649			14,223,046
Weighted average common shares (diluted)			14,125,649			14,241,114
Common shares outstanding at end of period			14,112,259			14,275,885
Performance Ratios
Return on average assets (annualized)			1.06	%		0.87	%
Return on average equity (annualized)			9.19	%		7.76	%
Net interest margin (annualized)			2.87	%		2.58	%
Non-interest income as a percentage of average assets (annualized)			0.05	%		0.09	%
Non-interest expense to average assets (annualized)			1.54	%		1.50	%
Efficiency ratio			53.1	%		56.5	%
Asset Quality
Non-performing assets to total assets			0.04	%		- -	%
Non-performing loans to total loans			0.05	%		- -	%
Allowance for loan credit losses to non-performing assets			20.3	x		- -	x
Allowance for loan credit losses to total loans			1.01	%		1.01	%
Net recoveries to average loans (annualized)			0.01	%		- -	%
Loans 30-89 days past due and accruing interest		$	450		$	- -
90 days past due and still accruing interest			- -			- -
Non-accrual loans			984			- -
Other real estate owned			- -			- -
Non-performing assets (1)			984			- -
Capital Ratios (Bank Level)
Equity / assets			12.2	%		11.9	%
Total risk-based capital ratio			16.5	%		16.5	%
Tier 1 risk-based capital ratio			15.4	%		15.4	%
Common equity tier 1 ratio			15.4	%		15.4	%
Leverage ratio			12.6	%		12.6	%
Other Information
Number of full time equivalent employees			139			136
# Full service branch offices			8			8

___________________
(1)		Non-performing assets consist of non-accrual loans, loans 90 days or more past due and still accruing interest and other real estate owned.

John Marshall Bancorp, Inc.
Consolidated Balance Sheets
(Dollar amounts in thousands, except per share data)
											% Change
		March 31			December 31,			March 31			Last Three			Year Over
		2026			2025			2025			Months			Year
Assets		(Unaudited)			*			(Unaudited)
Cash and due from banks		$	9,132		$	6,492		$	10,541		40.7	%		(13.4)	%
Interest-bearing deposits in banks			141,061			123,482			158,519		14.2	%		(11.0)	%
Securities available-for-sale, at fair value			126,166			123,852			124,469		1.9	%		1.4	%
Securities held-to-maturity at amortized cost, fair value of $76,669, $77,575, and $77,455 at 3/31/2026, 12/31/2025, and 3/31/2025, respectively			87,598			88,421			91,172		(0.9)	%		(3.9)	%
Restricted securities, at cost			7,717			7,644			7,634		- -	%		1.1	%
Equity securities, at fair value			2,886			2,843			2,888		1.5	%		(0.1)	%
Loans, net of unearned income			1,973,743			1,975,360			1,870,472		(0.1)	%		5.5	%
Allowance for loan credit losses			(19,983)			(19,805)			(18,826)		0.9	%		6.1	%
Net loans			1,953,760			1,955,555			1,851,646		(0.1)	%		5.5	%
Bank premises and equipment, net			1,191			1,315			1,484		(9.4)	%		(19.7)	%
Accrued interest receivable			6,071			5,890			5,902		3.1	%		2.9	%
Right of use assets			4,289			4,551			4,752		(5.8)	%		(9.7)	%
Other assets			12,479			12,505			13,425		(0.2)	%		(7.0)	%
Total assets		$	2,352,350		$	2,332,550		$	2,272,432		0.8	%		3.5	%
Liabilities and Shareholders' Equity
Liabilities
Deposits:
Non-interest bearing demand deposits		$	458,197		$	432,733		$	437,822		5.9	%		4.7	%
Interest-bearing demand deposits			734,164			745,323			705,386		(1.5)	%		4.1	%
Savings deposits			33,525			34,683			42,583		(3.3)	%		(21.3)	%
Time deposits			761,842			759,546			736,384		0.3	%		3.5	%
Total deposits			1,987,728			1,972,285			1,922,175		0.8	%		3.4	%
Federal Home Loan Bank advances			56,000			56,000			56,000		- -	%		- -	%
Subordinated debt, net			24,896			24,875			24,812		0.1	%		0.3	%
Accrued interest payable			1,988			2,124			2,072		(6.4)	%		(4.1)	%
Lease liabilities			4,542			4,819			5,101		(5.7)	%		(11.0)	%
Other liabilities			9,049			6,809			9,314		32.9	%		(2.8)	%
Total liabilities			2,084,203			2,066,912			2,019,474		0.8	%		3.2	%
Shareholders' Equity
Preferred stock, par value $0.01 per share; authorized 1,000,000 shares; none issued			- -			- -			- -		N/M			N/M
Common stock, nonvoting, par value $0.01 per share; authorized 1,000,000 shares; none issued			- -			- -			- -		N/M			N/M
Common stock, voting, par value $0.01 per share; authorized 30,000,000 shares; issued and outstanding, 14,112,259 at 3/31/2026 including 68,207 unvested shares, 14,214,603 at 12/31/2025 including 68,547 unvested shares, and 14,275,885 at 3/31/2025 including 50,419 unvested shares			140			141			142		(0.7)	%		(1.4)	%
Additional paid-in capital			93,796			95,699			97,310		(2.0)	%		(3.6)	%
Retained earnings			181,736			176,913			164,761		2.7	%		10.3	%
Accumulated other comprehensive loss			(7,525)			(7,115)			(9,255)		5.8	%		(18.7)	%
Total shareholders' equity			268,147			265,638			252,958		0.9	%		6.0	%
Total liabilities and shareholders' equity		$	2,352,350		$	2,332,550		$	2,272,432		0.8	%		3.5	%

* Derived from audited consolidated financial statements.

John Marshall Bancorp, Inc.
Consolidated Statements of Income
(Dollar amounts in thousands, except per share data)
		Three Months Ended
		March 31,
		2026			2025			% Change
		(Unaudited)			(Unaudited)
Interest and Dividend Income
Interest and fees on loans		$	26,586		$	24,807		7.2	%
Interest on investment securities, taxable			1,165			1,032		12.9	%
Interest on investment securities, tax-exempt			9			9		- -	%
Dividends			116			123		(5.7)	%
Interest on deposits in other banks			1,206			1,334		(9.6)	%
Total interest and dividend income			29,082			27,305		6.5	%
Interest Expense
Deposits			11,673			12,300		(5.1)	%
Federal Home Loan Bank advances			551			559		(1)	%
Subordinated debt			349			349		- -	%
Total interest expense			12,573			13,208		(4.8)	%
Net interest income			16,509			14,097		17.1	%
Provision for Credit Losses			23			170		(86.5)	%
Net interest income after provision for credit losses			16,486			13,927		18.4	%
Non-interest Income
Service charges on deposit accounts			85			82		3.7	%
Other service charges and fees			138			153		(9.8)	%
Insurance commissions			64			213		(70.0)	%
Gain on sale of government guaranteed loans			6			36		(83.3)	%
Non-qualified deferred compensation plan asset gains (losses), net			(13)			24		N/M
Other income (loss)			4			(3)		N/M
Total non-interest income			284			505		(43.8)	%
Non-interest Expenses
Salaries and employee benefits			5,621			5,099		10.2	%
Occupancy expense of premises			406			407		(0.2)	%
Furniture and equipment expenses			346			316		9.5	%
Other expenses			2,550			2,426		5.1	%
Total non-interest expenses			8,923			8,248		8.2	%
Income before income taxes			7,847			6,184		26.9	%
Income Tax Expense			1,746			1,374		27.1	%
Net income		$	6,101		$	4,810		26.8	%
Earnings Per Share
Basic		$	0.43		$	0.34		26.5	%
Diluted		$	0.43		$	0.34		26.5	%

John Marshall Bancorp, Inc.
Historical Trends - Quarterly Financial Data (Unaudited)
(Dollar amounts in thousands, except per share data)
At or For the Three Months Ended
		2026				2025
		March 31			December 31			September 30			June 30			March 31
Profitability for the Quarter:
Interest income		$	29,082		$	29,164		$	28,945		$	27,843		$	27,305
Interest expense			12,573			13,224			13,345			12,917			13,208
Net interest income			16,509			15,940			15,600			14,926			14,097
Provision for credit losses			23			624			356			537			170
Non-interest income			284			409			653			507			505
Non-interest expenses			8,923			7,971			9,034			8,313			8,248
Income before income taxes			7,847			7,754			6,863			6,583			6,184
Income tax expense			1,746			1,838			1,459			1,480			1,374
Net income		$	6,101		$	5,916		$	5,404		$	5,103		$	4,810
Financial Performance:
Return on average assets (annualized)			1.06	%		1.01	%		0.94	%		0.91	%		0.87	%
Return on average equity (annualized)			9.19	%		8.89	%		8.31	%		8.06	%		7.76	%
Net interest margin (annualized)			2.87	%		2.73	%		2.72	%		2.69	%		2.58	%
Non-interest income as a percentage of average assets (annualized)			0.05	%		0.07	%		0.11	%		0.09	%		0.09	%
Non-interest expense to average assets (annualized)			1.54	%		1.36	%		1.57	%		1.49	%		1.50	%
Efficiency ratio			53.1	%		48.8	%		55.6	%		53.9	%		56.5	%
Per Share Data:
Earnings per common share - basic		$	0.43		$	0.42		$	0.38		$	0.36		$	0.34
Earnings per common share - diluted		$	0.43		$	0.42		$	0.38		$	0.36		$	0.34
Book value per share		$	19.00		$	18.69		$	18.27		$	17.83		$	17.72
Dividends declared per share		$	0.09		$	- -		$	- -		$	0.30		$	- -
Weighted average common shares (basic)			14,125,649			14,142,249			14,172,953			14,221,597			14,223,046
Weighted average common shares (diluted)			14,125,649			14,142,249			14,172,953			14,223,418			14,241,114
Common shares outstanding at end of period			14,112,259			14,214,603			14,216,781			14,231,389			14,275,885
Non-interest Income:
Service charges on deposit accounts		$	85		$	81		$	87		$	86		$	82
Other service charges and fees			138			142			135			141			153
Insurance commissions			64			24			58			33			213
Gain on sale of government guaranteed loans			6			119			106			61			36
Non-qualified deferred compensation plan asset gains (losses), net			(13)			38			158			182			24
Other income (loss)			4			5			109			4			(3)
Total non-interest income		$	284		$	409		$	653		$	507		$	505
Non-interest Expenses:
Salaries and employee benefits		$	5,621		$	4,758		$	5,693		$	5,178		$	5,099
Occupancy expense of premises			406			326			405			407			407
Furniture and equipment expenses			346			326			329			315			316
Other expenses			2,550			2,561			2,607			2,413			2,426
Total non-interest expenses		$	8,923		$	7,971		$	9,034		$	8,313		$	8,248
Balance Sheets at Quarter End:
Total loans, net of unearned income		$	1,973,743		$	1,975,360		$	1,938,108		$	1,916,915		$	1,870,472
Allowance for loan credit losses			(19,983)			(19,805)			(19,714)			(19,298)			(18,826)
Investment securities			224,367			222,760			216,119			226,495			226,163
Interest-earning assets			2,339,171			2,321,602			2,309,005			2,250,921			2,255,154
Total assets			2,352,350			2,332,550			2,324,544			2,267,953			2,272,432
Total deposits			1,987,728			1,972,285			1,968,828			1,896,893			1,922,175
Total interest-bearing liabilities			1,610,427			1,620,427			1,602,757			1,555,598			1,565,165
Total shareholders' equity			268,147			265,638			259,692			253,732			252,958
Quarterly Average Balance Sheets:
Total loans, net of unearned income		$	1,974,165		$	1,946,386		$	1,912,275		$	1,868,290		$	1,868,303
Investment securities			225,904			220,324			221,802			229,171			231,479
Interest-earning assets			2,331,813			2,319,551			2,275,386			2,224,806			2,220,730
Total assets			2,343,457			2,331,563			2,289,352			2,238,955			2,233,761
Total deposits			1,977,321			1,970,486			1,934,456			1,883,425			1,884,969
Total interest-bearing liabilities			1,618,347			1,601,506			1,571,390			1,530,811			1,540,974
Total shareholders' equity			269,327			264,175			257,993			254,071			251,559
Financial Measures:
Average equity to average assets			11.5	%		11.3	%		11.3	%		11.3	%		11.3	%
Investment securities to earning assets			9.6	%		9.6	%		9.4	%		10.1	%		10.0	%
Loans to earning assets			84.4	%		85.1	%		83.9	%		85.2	%		82.9	%
Loans to assets			83.9	%		84.7	%		83.4	%		84.5	%		82.3	%
Loans to deposits			99.3	%		100.2	%		98.4	%		101.1	%		97.3	%
Capital Ratios (Bank Level):
Equity / assets			12.2	%		12.2	%		12.1	%		12.2	%		11.9	%
Total risk-based capital ratio			16.5	%		16.3	%		16.6	%		16.3	%		16.5	%
Tier 1 risk-based capital ratio			15.4	%		15.2	%		15.5	%		15.3	%		15.4	%
Common equity tier 1 ratio			15.4	%		15.2	%		15.5	%		15.3	%		15.4	%
Leverage ratio			12.6	%		12.5	%		12.7	%		12.8	%		12.6	%

John Marshall Bancorp, Inc.
Loan, Deposit and Borrowing Detail (Unaudited)
(Dollar amounts in thousands)
	2026				2025
	March 31				December 31				September 30				June 30				March 31
Loans		$ Amount	% of Total			$ Amount	% of Total			$ Amount	% of Total			$ Amount	% of Total			$ Amount	% of Total
Commercial business loans	$	48,905	2.5	%	$	49,729	2.5	%	$	46,486	2.4	%	$	43,158	2.3	%	$	46,479	2.5	%
Commercial PPP loans		- -	- -	%		124	0.0	%		124	0.0	%		124	0.0	%		124	0.0	%
Commercial owner-occupied real estate loans		321,858	16.3	%		323,486	16.4	%		327,269	16.9	%		320,061	16.7	%		318,087	17.1	%
Total business loans		370,763	18.8	%		373,339	18.9	%		373,879	19.3	%		363,343	19.0	%		364,690	19.6	%
Investor real estate loans		762,158	38.8	%		756,620	38.5	%		770,405	39.9	%		777,591	40.7	%		759,002	40.7	%
Construction & development loans		228,591	11.6	%		222,659	11.3	%		193,444	10.0	%		186,409	9.7	%		173,270	9.3	%
Multi-family loans		92,913	4.7	%		93,511	4.7	%		93,477	4.8	%		94,415	4.9	%		95,556	5.1	%
Total commercial real estate loans		1,083,662	55.1	%		1,072,790	54.5	%		1,057,326	54.7	%		1,058,415	55.3	%		1,027,828	55.1	%
Residential mortgage loans		513,650	26.1	%		522,990	26.5	%		501,104	25.9	%		489,522	25.6	%		472,747	25.3	%
Consumer loans		760	0.0	%		1,157	0.1	%		1,029	0.1	%		998	0.1	%		809	0.0	%
Total loans	$	1,968,835	100.0	%	$	1,970,276	100.0	%	$	1,933,338	100.0	%	$	1,912,278	100.0	%	$	1,866,074	100.0	%
Less: Allowance for loan credit losses		(19,983)				(19,805)				(19,714)				(19,298)				(18,826)
Net deferred loan costs		4,908				5,084				4,770				4,637				4,398
Net loans	$	1,953,760			$	1,955,555			$	1,918,394			$	1,897,617			$	1,851,646
	2026				2025
	March 31				December 31				September 30				June 30				March 31
Deposits		$ Amount	% of Total			$ Amount	% of Total			$ Amount	% of Total			$ Amount	% of Total			$ Amount	% of Total
Non-interest bearing demand deposits	$	458,197	23.1	%	$	432,733	21.9	%	$	446,925	22.7	%	$	438,628	23.1	%	$	437,822	22.8	%
Interest-bearing demand deposits:
NOW accounts(1)		362,057	18.2	%		380,029	19.3	%		366,655	18.6	%		344,931	18.2	%		355,752	18.5	%
Money market accounts(1)		372,107	18.7	%		365,294	18.5	%		360,640	18.3	%		336,299	17.7	%		349,634	18.2	%
Savings accounts		33,525	1.7	%		34,683	1.8	%		39,427	2.0	%		42,966	2.3	%		42,583	2.2	%
Certificates of deposit
$250,000 or more		340,851	17.1	%		337,605	17.1	%		337,800	17.2	%		324,343	17.1	%		322,630	16.8	%
Less than $250,000		80,058	4.0	%		84,710	4.3	%		85,719	4.4	%		80,500	4.2	%		79,305	4.1	%
QwickRate® certificates of deposit		- -	0.0	%		249	0.0	%		249	0.0	%		249	0.1	%		249	0.0	%
IntraFi® certificates of deposit		39,047	2.0	%		35,096	1.8	%		29,451	1.5	%		27,015	1.4	%		36,522	1.9	%
Brokered deposits		301,886	15.2	%		301,886	15.3	%		301,962	15.3	%		301,962	15.9	%		297,678	15.5	%
Total deposits	$	1,987,728	100.0	%	$	1,972,285	100.0	%	$	1,968,828	100.0	%	$	1,896,893	100.0	%	$	1,922,175	100.0	%
Borrowings
Federal funds purchased	$	- -	0.0	%	$	- -	0.0	%	$	- -	0.0	%	$	16,500	17.0	%	$	- -	0.0	%
Federal Home Loan Bank advances		56,000	69.2	%		56,000	69.2	%		56,000	69.3	%		56,000	57.5	%		56,000	69.3	%
Subordinated debt, net		24,896	30.8	%		24,875	30.8	%		24,854	30.7	%		24,833	25.5	%		24,812	30.7	%
Total borrowings	$	80,896	100.0	%	$	80,875	100.0	%	$	80,854	100.0	%	$	97,333	100.0	%	$	80,812	100.0	%
Total deposits and borrowings	$	2,068,624			$	2,053,160			$	2,049,682			$	1,994,226			$	2,002,987
Core customer funding sources (2)	$	1,685,842	82.5	%	$	1,670,150	82.3	%	$	1,666,617	82.3	%	$	1,594,682	81.0	%	$	1,624,248	82.1	%
Wholesale funding sources (3)		357,886	17.5	%		358,135	17.7	%		358,211	17.7	%		374,711	19.0	%		353,927	17.9	%
Total funding sources	$	2,043,728	100.0	%	$	2,028,285	100.0	%	$	2,024,828	100.0	%	$	1,969,393	100.0	%	$	1,978,175	100.0	%

(1)		Includes IntraFi® accounts.
(2)		Includes reciprocal IntraFi Demand® IntraFi Money Market® and IntraFi CD® deposits, which are maintained by customers.
(3)		Consists of QwickRate® certificates of deposit, brokered deposits, federal funds purchased, Federal Home Loan Bank advances and Federal Reserve Bank borrowings.

John Marshall Bancorp, Inc.
Average Balance Sheets, Interest and Rates (unaudited)
(Dollar amounts in thousands)
		Three Months Ended March 31, 2026								Three Months Ended March 31, 2025
					Interest Income /			Average					Interest Income /			Average
(Dollars in thousands)		Average Balance			Expense			Rate(3)		Average Balance			Expense			Rate(3)
Assets:
Securities:
Taxable		$	224,526		$	1,281		2.31	%	$	230,100		$	1,155		2.04	%
Tax-exempt(1)			1,378			11		3.24	%		1,379			11		3.24	%
Total securities		$	225,904		$	1,292		2.32	%	$	231,479		$	1,166		2.04	%
Loans, net of unearned income(2):
Taxable			1,953,760			26,403		5.48	%		1,851,627			24,679		5.41	%
Tax-exempt(1)			20,405			232		4.61	%		16,676			162		3.94	%
Total loans, net of unearned income		$	1,974,165		$	26,635		5.47	%	$	1,868,303		$	24,841		5.39	%
Interest-bearing deposits in other banks		$	131,744		$	1,206		3.71	%	$	120,948		$	1,334		4.47	%
Total interest-earning assets		$	2,331,813		$	29,133		5.07	%	$	2,220,730		$	27,341		4.99	%
Total non-interest earning assets			11,644								13,031
Total assets		$	2,343,457							$	2,233,761
Liabilities & Shareholders’ Equity:
Interest-bearing deposits
NOW accounts		$	371,418		$	1,926		2.10	%	$	357,206		$	2,127		2.41	%
Money market accounts			374,848			2,183		2.36	%		339,248			2,281		2.73	%
Savings accounts			34,972			69		0.80	%		43,062			104		0.98	%
Time deposits			756,391			7,495		4.02	%		720,658			7,788		4.38	%
Total interest-bearing deposits		$	1,537,629		$	11,673		3.08	%	$	1,460,174		$	12,300		3.42	%
Federal funds purchased			1			—		N/M			—			—		N/M
Subordinated debt			24,883			349		5.69	%		24,799			349		5.71	%
Federal Home Loan Bank advances			55,834			551		4.00	%		56,001			559		4.05	%
Total interest-bearing liabilities		$	1,618,347		$	12,573		3.15	%	$	1,540,974		$	13,208		3.48	%
Demand deposits			439,692								424,795
Other liabilities			16,091								16,433
Total liabilities		$	2,074,130							$	1,982,202
Shareholders’ equity		$	269,327							$	251,559
Total liabilities and shareholders’ equity		$	2,343,457							$	2,233,761
Tax-equivalent net interest income and spread (Non-GAAP)(1)					$	16,560		1.92	%				$	14,133		1.51	%
Less: tax-equivalent adjustment						51								36
Net interest income and spread (GAAP)					$	16,509		1.91	%				$	14,097		1.51	%
Interest income/earning assets								5.06	%							4.99	%
Interest expense/earning assets								2.19	%							2.41	%
Net interest margin								2.87	%							2.58	%

___________________
(1)		Tax-equivalent income and related measures have been adjusted using the federal statutory tax rate of 21%. The annualized taxable-equivalent adjustments utilized in the above table to compute yields aggregated to $51 thousand and $36 thousand for the three months ended March 31, 2026 and March 31, 2025, respectively.
(2)		Non-accrual loans are included in the average balances.
(3)		Rates and yields are annualized and calculated from rounded amounts in thousands, which appear above.

Category: Earnings

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Christopher W. Bergstrom, (703) 584-0840
Kent D. Carstater, (703) 289-5922

Source: John Marshall