John Marshall Bancorp (Nasdaq: JMSB) Q2 profit jumps 37.5%
Rhea-AI Filing Summary
John Marshall Bancorp, Inc. reported strong results for the quarter ended June 30, 2026, with net income of $7.0 million, up 37.5% from $5.1 million a year earlier. Diluted EPS was $0.50, up 38.9%. Annualized ROA was 1.20% and ROE 10.34%, both higher than in 2025.
Net interest income rose 16.1% to $17.3 million as net interest margin expanded to 2.99% from 2.69%, driven by higher loan balances and yields plus lower rates on interest-bearing deposits. Non-interest income increased sharply, including an $835 thousand gain on sale of an equity investment unit, while the efficiency ratio improved to 50.5%.
Total assets reached $2.40 billion and loans $2.01 billion, with continued growth in construction and residential mortgages. Asset quality remained strong, with non-performing assets at 0.01% of assets and no non-accrual loans, and bank capital ratios stayed well above well-capitalized regulatory thresholds. The board raised the quarterly dividend to $0.10 per share, a 33% annualized increase versus a year ago.
Positive
- Net income rose 37.5% to $7.0 million in Q2 2026 versus $5.1 million a year earlier, with diluted EPS up 38.9% to $0.50, indicating materially stronger profitability.
- Net interest margin expanded to 2.99% in Q2 2026 from 2.69% in Q2 2025 as loan yields improved and deposit costs declined, supporting higher core banking earnings.
- Asset quality and capital are robust, with non-performing assets at 0.01% of total assets, no non-accrual loans, and a total risk-based capital ratio of 16.7%, well above well-capitalized thresholds.
Negative
- None.
8-K Event Classification
Key Figures
Key Terms
net interest margin financial
allowance for loan credit losses financial
non-performing assets financial
Subordinated debt financial
Core customer funding sources financial
Earnings Snapshot
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FAQ
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
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CURRENT REPORT
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Item 2.02 Results of Operations and Financial Condition.
On July 22, 2026, John Marshall Bancorp, Inc. (the “Company”) issued a press release announcing its results of operations and financial condition for the quarter ended June 30, 2026. A copy of the press release is included as Exhibit 99.1 to this report.
Item 9.01 Financial Statements and Exhibits.
Exhibit No. | | Description |
99.1 | Press release dated July 22, 2026. | |
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). | |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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| JOHN MARSHALL BANCORP, INC. | ||||
Date: July 22, 2026 |
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| By: |
| /s/ Kent D. Carstater | |
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| Kent D. Carstater Senior Executive Vice President, Chief Financial Officer | |||
Exhibit 99.1
For Immediate Release
July 22, 2026
Strong Loan Growth and Sustained Net Interest Margin Expansion Drive
1.20% Return on Average Assets and 10.34% Return on Average Equity
Reston, VA – John Marshall Bancorp, Inc. (Nasdaq: JMSB) (the “Company”), parent company of John Marshall Bank (the “Bank”), reported net income of $7.0 million for the quarter ended June 30, 2026 compared to $5.1 million for the quarter ended June 30, 2025, an increase of $1.9 million or 37.5%. Diluted earnings per common share were $0.50 for the quarter ended June 30, 2026 compared to $0.36 for the quarter ended June 30, 2025, an increase of 38.9%. Annualized return on average assets was 1.20% for the quarter ended June 30, 2026 compared to 0.91% for the quarter ended June 30, 2025. Annualized return on average equity was 10.34% for the quarter ended June 30, 2026 compared to 8.06% for the quarter ended June 30, 2025.
Selected Highlights
| ● | Earnings Growth Momentum – Net income of $7.0 million for the quarter ended June 30, 2026 represented a 15.0% increase over the $6.1 million net income reported for the quarter ended March 31, 2026 or an annualized quarter-over-quarter increase of 60.4%. The quarter ended June 30, 2026 represented the eighth consecutive quarter of net income growth and marked the highest level of net income since the fourth quarter of 2022. Diluted earnings per common share were $0.50 for the quarter ended June 30, 2026 and represented a 16.3% increase over the $0.43 diluted earnings per common share reported for the quarter ended March 31, 2026 or an annualized quarter-over-quarter increase of 65.3%. |
| ● | Significant Increase in Net Interest Income – For the three months ended June 30, 2026, the Company reported net interest income of $17.3 million, representing a $0.8 million or 20.0% annualized increase over the linked quarter and a $2.4 million or 16.1% increase over the prior-year quarter. |
| ● | Sustained Net Interest Margin Expansion – Net interest margin grew by 12 basis points during the most recent quarter to 2.99% compared to 2.87% for the first quarter of 2026 and 2.69% for the second quarter of 2025. This represents the ninth consecutive quarterly net interest margin expansion. |
| ● | Strong Loan Growth – The Company’s loan portfolio, net of unearned income, grew $41.2 million or 8.4% annualized during the second quarter of 2026. Loans, net of unearned income, increased $98.0 million or 5.1% from June 30, 2025 to June 30, 2026. Total loans exceeded $2.0 billion for the first time in the Company’s history. |
| ● | Focus on Core Deposit Growth – The Company remains focused on driving value through core deposit growth. For the twelve months ended June 30, 2026, total deposits increased $96.1 million or 5.1%. |
| ● | Positive Operating Leverage – Total revenue (net interest income plus non-interest income) grew 21.7% for the quarter ended June 30, 2026 relative to the quarter ended June 30, 2025, while non-interest expense increased 14.2% over the same period. This positive trend in operating leverage improved the efficiency ratio from 53.9% for the three months ended June 30, 2025 to 50.5% for the three months ended June 30, 2026. |
| ● | Strong Asset Quality – Overall credit quality of the loan portfolio remains exceptional. As of June 30, 2026, the Company did not have any non-accrual loans and had no other real estate owned assets. A commercial Small Business Administration (“SBA”) 7(a) loan designated as non-accrual during the first quarter of 2026 was paid in full by the SBA on June 2, 2026. |
| ● | Growing Book Value per Share and Higher Dividends – Book value per share increased from $17.83 as of June 30, 2025 to $19.40 as of June 30, 2026, an 8.8% increase. On July 21, 2026, the Company’s Board of Directors declared a quarterly cash dividend of $0.10 per share on the Company’s common stock. The dividend is payable on August 26, 2026 to shareholders of record at the close of business on August 5, 2026. |
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| The quarterly cash dividend represents an 11.1% increase over the quarterly cash dividend of $0.09 declared on April 28, 2026. |
| ● | Robust Capitalization – Each of the Bank’s regulatory capital ratios remained well in excess of the regulatory well-capitalized thresholds as of June 30, 2026. |
Chris Bergstrom, President and Chief Executive Officer, commented, “The Company achieved two significant growth milestones during the second quarter. We exceeded $2.4 billion in total assets and surpassed $2.0 billion in gross loans. John Marshall produced $41 million in loan growth during the second quarter and our pipeline for the third quarter looks strong. Quarterly earnings of $7 million marked the eighth consecutive quarter of increased net income and resulted in earnings per share growth of 38.9% when compared to the second quarter of 2025. Asset quality remains exemplary and the Bank is very well-capitalized. As an expression of the soundness of our balance sheet and confidence in the outlook for our financial performance, the Board of Directors increased our quarterly cash dividend to $0.10 per common share. On an annualized basis, the dividend represents a 33% increase versus a year ago. We are pleased to have increased our return on assets to 1.20% and our return on equity to 10.34% and believe that we are well-positioned to grow the balance sheet, profits and shareholder value.”
Balance Sheet, Liquidity and Credit Quality
The Company carried balance sheet growth momentum into the second quarter of 2026 and exceeded $2.4 billion in total assets and $2.0 billion in total loans for the first time in the Company’s history.
Total assets were $2.40 billion at June 30, 2026, $2.35 billion at March 31, 2026, and $2.27 billion at June 30, 2025. Total assets increased $50.1 million or 8.5% annualized since March 31, 2026 and $134.5 million or 5.9% from June 30, 2025.
Total loans, net of unearned income, increased $41.2 million or 8.4% annualized to $2.01 billion at June 30, 2026 compared to $1.97 billion at March 31, 2026 and increased $98.0 million or 5.1% from $1.92 billion at June 30, 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 $213.7 million at June 30, 2026, $213.8 million at March 31, 2026, and $215.8 million at June 30, 2025. During the most recent quarter, the Company purchased nine fixed income securities, designated as available-for-sale, with a total carrying amount of $17.8 million and a weighted average purchase yield of 4.39%. Fixed income securities which matured during the most recent quarter had an average yield of 1.32%. As of June 30, 2026, 95.4% of our bond portfolio carried the implied guarantee of the United States government or one of its agencies. At June 30, 2026, 74.7% of the fixed income portfolio was invested in amortizing bonds, which provides the Company with a source of steady cash flow. At June 30, 2026, the fixed income portfolio had an estimated weighted average life of 4.0 years. The available-for-sale portfolio comprised approximately 61% of the fixed income securities portfolio and had a weighted average life of 3.5 years at June 30, 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 June 30, 2026.
The Company did not have an allowance for credit losses on held-to-maturity securities as of June 30, 2026 or December 31, 2025. As of June 30, 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 $827.2 million as of June 30, 2026 compared to $881.0 million as of March 31, 2026 and represented 34.4% and 37.5% of total assets, respectively. In addition to available secured borrowing capacity, the Bank had available federal funds lines of $70.0 million at June 30, 2026.
Total deposits increased $5.3 million or 1.1% annualized to $1.99 billion at June 30, 2026 compared to $1.99 billion at March 31, 2026, and increased $96.1 million or 5.1% from $1.90 billion at June 30, 2025. During the preceding twelve months, total interest-bearing deposits increased $83.2 million or 5.7%, while total non-interest bearing deposits increased $12.9 million or 2.9% over the same period. Detail on the deposit activity can be seen in the Loan,
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Deposit and Borrowing Detail table. As of June 30, 2026, the Company had $703.8 million of deposits that were not insured or not collateralized compared to $691.5 million and $656.0 million at December 31, 2025 and June 30, 2025, respectively.
Federal Home Loan Bank (“FHLB”) advances remained unchanged at $56.0 million as of June 30, 2026 compared to March 31, 2026 and June 30, 2025. As of June 30, 2026, the FHLB advances had a weighted average fixed interest rate of 3.85%. In addition to outstanding FHLB advances, total borrowings as of June 30, 2026 included federal funds purchased and subordinated debt totaling $40.0 million and $24.9 million, respectively.
Shareholders’ equity increased $20.1 million or 7.9% to $273.8 million at June 30, 2026 compared to $253.7 million at June 30, 2025. Book value per share was $19.40 as of June 30, 2026 compared to $17.83 as of June 30, 2025, an increase of 8.8%. The year-over-year increase in shareholders’ equity and 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 June 30, 2026, the Bank’s total risk-based capital ratio was 16.7%, compared to 16.3% at both December 31, 2025 and June 30, 2025.
As of June 30, 2026, the Company did not have any non-accrual loans and had no other real estate owned. A commercial SBA 7(a) loan previously designated as non-accrual at March 31, 2026, was paid in full by the SBA on June 2, 2026. During the three months ended June 30, 2026, the Company charged-off three commercial SBA 7(a) loans in the total amount of $172 thousand. These charge-offs represented the unguaranteed portions of the loans and we expect the SBA to fully pay the guaranteed portions.
At June 30, 2026, the allowance for loan credit losses was $20.2 million or 1.00% of outstanding loans, net of unearned income, compared to $20.0 million or 1.01% of outstanding loans, net of unearned income, at March 31, 2026. The increase in the allowance for credit losses during the most recent quarter was predominantly driven by loan portfolio growth and the associated change in the portfolio mix. Asset quality remains strong. Management believes the current allowance for credit losses is appropriate given the composition and performance of the loan portfolio.
At June 30, 2026, the allowance for credit losses on unfunded loan commitments was $1.1 million compared to $1.2 million at March 31, 2026, 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 June 30, 2026.
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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) | Weighted Average Loan-to-Value(1) | | Weighted Average Debt Service Coverage Ratio(2) | | Number of Total Loans | | Principal Balance(3) |
Warehouse & Industrial | 48.4 | % | 3.0 | x | 54 | $ | 66,496 | 47.6 | % | 2.1 | x | 48 | $ | 108,755 |
Office | 56.8 | % | 3.7 | x | 129 | | 82,716 | 45.4 | % | 1.7 | x | 61 | | 110,553 |
Retail | 60.8 | % | 3.3 | x | 45 | | 91,989 | 49.2 | % | 1.8 | x | 144 | | 452,159 |
Church | 23.9 | % | 2.3 | x | 17 | | 23,668 | 40.5 | % | 1.4 | x | 1 | | 365 |
Hotel/Motel | - - | | - - | | - - | | - - | 50.1 | % | 1.5 | x | 12 | | 81,777 |
Other(4) | 35.4 | % | 3.7 | x | 38 | | 66,538 | 44.8 | % | 2.2 | x | 7 | | 14,214 |
Total | | | | | 283 | $ | 331,407 | | | | | 273 | $ | 767,823 |
| (1) | Weighted average loan-to-value is calculated using the principal balance as of June 30, 2026 divided by the appraised value determined at origination. |
| (2) | The debt service coverage ratio (“DSCR”) is calculated from the primary source of repayment for the loan. Owner occupied DSCRs are derived from cash flows from the owner occupant’s business, property and their guarantors, while non-owner occupied DSCRs 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 June 30, 2026:
Non-owner occupied office: Geography | |||
Geography | Commitment | | Percentage |
Virginia | $75,593 | | 65.3% |
Maryland | 25,850 | | 22.4% |
DC | 14,187 | | 12.3% |
Total | $115,630 | | 100.0% |
Non-owner occupied office: Maturity | |||
Maturity | Commitment | | Percentage |
2026 | $2,690 | | 2.3% |
2027 | 6,498 | | 5.7% |
2028 | 16,913 | | 14.6% |
2029 | 26,115 | | 22.6% |
2030 and thereafter | 63,414 | | 54.8% |
Total | $115,630 | | 100.0% |
Income Statement Review
Quarterly Results
The Company reported net income of $7.0 million for the second quarter of 2026, an increase of $1.9 million or 37.5% when compared to $5.1 million for the second quarter of 2025.
For the three months ended June 30, 2026, net interest income increased $2.4 million or 16.1% to $17.3 million compared to $14.9 million for the three months ended June 30, 2025. During the same period, interest income grew $1.9 million or 6.8%, driven by higher interest income on loans, while interest expense declined by $0.5 million or 3.9%, predominantly due to lower interest expense on all interest-bearing deposit categories.
The annualized net interest margin for the second quarter of 2026 was 2.99% compared to 2.69% 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 3.13% for the second quarter of 2026 compared to 3.38% for the same quarter in the prior year driven by the 26 basis point decline in rates on interest-bearing deposits. Rates declined across
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all deposit categories, most notably in time deposits, money market accounts, and savings accounts, which declined by 35 basis points, 28 basis points, and 18 basis points, respectively. The yield on interest-earning assets was 5.13% for the second quarter of 2026 compared to 5.03% for the same period in 2025 primarily due to an 11 basis point increase in loan yield coupled with a 35 basis point increase in securities yield. These increases were partially offset by a 75 basis point 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 preceding twelve months. Average loans increased by $110.5 million between the three months ended June 30, 2026 and the three months ended June 30, 2025, which was primarily attributable to origination volume in the construction & development and residential mortgage loan portfolios subsequent to June 30, 2025.
The Company recorded a $258 thousand provision for credit losses for the second quarter of 2026 compared to $537 thousand for the second quarter of 2025. Provision for credit losses on funded loans totaled $384 thousand, while provision for credit losses on unfunded loan commitments was a recovery of $126 thousand during the three months ended June 30, 2026. The provision for credit losses on funded loans during the most recent quarter reflected the growth of the Company’s loan portfolio, and the related change in the portfolio mix, in combination with the impact of the previously mentioned charge-offs. Recovery of the provision for credit losses on unfunded loan commitments was due to a lower amount of available loan commitments at June 30, 2026 as compared to March 31, 2026.
Non-interest income increased $936 thousand or 184.6% during the second quarter of 2026 compared to the second quarter of 2025, which was primarily attributable to a $835 thousand gain recognized on a sale of the Company’s interest in one of its equity investment units. Excluding this gain, non-interest income increased $101 thousand or 19.9% during the most recent quarter as compared to the prior year quarter, as a result of a $80 thousand increase in mark-to-market adjustments on investments related to the Company’s non-qualified deferred compensation plan, a $50 thousand increase in other fee income due to higher early termination fees on customers’ time deposits, and a $43 thousand increase in other income, as a result of receipt of a class action settlement claim from a health insurance carrier. These increases were partially offset by a $61 thousand decrease in gain on sale of SBA 7(a) loans.
Non-interest expense increased $1.2 million or 14.2% during the second quarter of 2026 compared to the second quarter of 2025 primarily resulting from an increase in salaries and employee benefits and higher marketing expense. Salaries and employee benefits increased $979 thousand, as a result of increases in incentive compensation, higher mark-to-market adjustments on the Company’s non-qualified deferred compensation plan and the impact of the annual salary merit increase. Incentive compensation accruals can fluctuate materially from quarter to quarter, based upon the Company’s financial performance and conditions measured against, among other evaluation criteria, our strategic plan and budget. At the end of each year, the ultimate determination of the incentive compensation is approved by the Board of Directors. Marketing expense increased $131 thousand mainly due to various public relations and advertising initiatives.
For the three months ended June 30, 2026, annualized non-interest expense to average assets was 1.63% compared to 1.49% for the three months ended June 30, 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 June 30, 2026, the efficiency ratio declined to 50.5% compared to 53.9% for the three months ended June 30, 2025. The improvement in the efficiency ratio was due to a 21.7% growth in total revenue, which outpaced a 14.2% increase in non-interest expense over the period.
Return on average assets for the quarter ended June 30, 2026 was 1.20% and return on average equity was 10.34% compared to 0.91% and 8.06%, respectively, for the second quarter of 2025.
Year-to-Date Results
The Company reported net income of $13.1 million for the six months ended June 30, 2026, an increase of $3.2 million or 32.4% when compared to the same period in 2025.
Net interest income for the six months ended June 30, 2026 increased $4.8 million or 16.6% compared to the same period of 2025. The annualized net interest margin for the six months ended June 30, 2026 was 2.93% as compared to 2.63% for the same period in the prior year. These increases were driven primarily by the increase in average balances and yields of the loan portfolio in combination with a decrease in rates of interest-bearing deposits.
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The cost of interest-bearing liabilities was 3.14% for the six months ended June 30, 2026 compared to 3.43% for the six months ended June 30, 2025. The decrease in the cost of interest-bearing liabilities was primarily due to a 30 basis point decrease in the cost of interest-bearing deposits as a result of the repricing of the Company’s time deposits coupled with a decrease in rates offered on money market, NOW and savings deposit accounts since the second quarter of 2025. The yield on interest-earning assets was 5.10% for the six months ended June 30, 2026 compared to 5.01% for the same period in 2025. The increase in yield on interest-earning assets was primarily due to a nine basis point and a 32 basis point increase in yields on the Company’s loans and securities, respectively, as assets repriced at higher prevailing interest rates subsequent to the second quarter of 2025. Average loans increased $108.2 million between the six months ended June 30, 2026 and 2025, which was primarily attributable to origination volume in the construction & development, and residential mortgage loan portfolios subsequent to June 30, 2025.
The Company recorded a $281 thousand provision for credit losses for the six months ended June 30, 2026 compared to a $707 thousand provision for credit losses for the six months ended June 30, 2025. The provision for credit losses during the six months ended June 30, 2026 was primarily a result of changes in the composition and volume of the loan portfolio in combination with the impact of the previously mentioned charge-offs recorded during the most recent quarter. All other model assumptions, including economic forecasts used in the quantitative portion of the model, stayed relatively stable during the period.
Non-interest income increased $716 thousand or 70.8% during the six months ended June 30, 2026 compared to the same period of 2025. The increase was primarily driven by previously mentioned $835 thousand gain on sale of the Company’s investment unit in combination with a $51 thousand increase in other income driven by the receipt of a class action settlement claim from a health insurance carrier and a $43 thousand increase in mark-to-market adjustments on investments related to the Company’s non-qualified deferred compensation plan. These increases were partially offset by a $153 thousand decrease in bankers insurance commission coupled with a $91 thousand decline in gain on sale of SBA 7(a) loans.
Non-interest expense increased $1.9 million or 11.2% during the six months ended June 30, 2026 compared to the same period in 2025 predominantly due to a $1.5 million or 14.6% increase in salaries and employee benefits, as discussed above in the quarterly results. Other expenses increased $301 thousand or 6.2% for the six months ended June 30, 2026 compared to the six months ended June 30, 2025. Increases were primarily in state franchise tax and FDIC insurance, due to higher assessment bases, and an increase in marketing expense. Furniture and equipment expenses increased $63 thousand or 10.0% for the six months ended June 30, 2026 compared to the same period in 2025. The increase was due to investment and maintenance in technology.
For the six months ended June 30, 2026, annualized non-interest expense to average assets was 1.59% compared to 1.49% for the six months ended June 30, 2025.
For the six months ended June 30, 2026, the efficiency ratio was 51.8% compared to 55.1% for the six months ended June 30, 2025. The improvement in the efficiency ratio was due to an 18.4% growth in total revenue, which outpaced an 11.2% increase in non-interest expense over the period.
Return on average assets for the six months ended June 30, 2026 was 1.13% and return on average equity was 9.77% compared to 0.89% and 7.91%, respectively, for the six months ended June 30, 2025.
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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.
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 United States 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 United States 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.
# # #
7
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 Six Months Ended | | ||||||||
| | | June 30 | | | June 30 | | ||||||
| | 2026 | | 2025 | | 2026 | | 2025 | | ||||
Selected Balance Sheet Data | | | | | | | | | | | | | |
Cash and cash equivalents | | $ | 159,026 | | $ | 116,926 | | $ | 159,026 | | $ | 116,926 | |
Total investment securities | | | 224,486 | | | 226,495 | | | 224,486 | | | 226,495 | |
Loans, net of unearned income | | | 2,014,939 | | | 1,916,915 | | | 2,014,939 | | | 1,916,915 | |
Allowance for loan credit losses | | | 20,196 | | | 19,298 | | | 20,196 | | | 19,298 | |
Total assets | | | 2,402,421 | | | 2,267,953 | | | 2,402,421 | | | 2,267,953 | |
Non-interest bearing demand deposits | | | 451,543 | | | 438,628 | | | 451,543 | | | 438,628 | |
Interest-bearing deposits | | | 1,541,442 | | | 1,458,265 | | | 1,541,442 | | | 1,458,265 | |
Total deposits | | | 1,992,985 | | | 1,896,893 | | | 1,992,985 | | | 1,896,893 | |
Federal funds purchased | | | 40,000 | | | 16,500 | | | 40,000 | | | 16,500 | |
Federal Home Loan Bank advances | | | 56,000 | | | 56,000 | | | 56,000 | | | 56,000 | |
Shareholders' equity | | | 273,784 | | | 253,732 | | | 273,784 | | | 253,732 | |
| | | | | | | | | | | | | |
Summary Results of Operations | | | | | | | | | | | | | |
Interest income | | $ | 29,749 | | $ | 27,843 | | $ | 58,832 | | $ | 55,147 | |
Interest expense | | | 12,415 | | | 12,917 | | | 24,989 | | | 26,124 | |
Net interest income | | | 17,334 | | | 14,926 | | | 33,843 | | | 29,023 | |
Provision for credit losses | | | 258 | | | 537 | | | 281 | | | 707 | |
Net interest income after provision for credit losses | | | 17,076 | | | 14,389 | | | 33,562 | | | 28,316 | |
Non-interest income | | | 1,443 | | | 507 | | | 1,728 | | | 1,012 | |
Non-interest expense | | | 9,490 | | | 8,313 | | | 18,413 | | | 16,561 | |
Income before income taxes | | | 9,029 | | | 6,583 | | | 16,877 | | | 12,767 | |
Net income | | | 7,019 | | | 5,103 | | | 13,121 | | | 9,913 | |
| | | | | | | | | | | | | |
Per Share Data and Shares Outstanding | | | | | | | | | | | | | |
Earnings per common share - basic | | $ | 0.50 | | $ | 0.36 | | $ | 0.93 | | $ | 0.69 | |
Earnings per common share - diluted | | $ | 0.50 | | $ | 0.36 | | $ | 0.93 | | $ | 0.69 | |
Book value per share | | $ | 19.40 | | $ | 17.83 | | $ | 19.40 | | $ | 17.83 | |
Weighted average common shares (basic) | | | 14,044,290 | | | 14,221,597 | | | 14,074,329 | | | 14,222,311 | |
Weighted average common shares (diluted) | | | 14,044,290 | | | 14,223,418 | | | 14,074,329 | | | 14,231,142 | |
Common shares outstanding at end of period | | | 14,112,223 | | | 14,231,389 | | | 14,112,223 | | | 14,231,389 | |
| | | | | | | | | | | | | |
Performance Ratios | | | | | | | | | | | | | |
Return on average assets (annualized) | | | 1.20 | % | | 0.91 | % | | 1.13 | % | | 0.89 | % |
Return on average equity (annualized) | | | 10.34 | % | | 8.06 | % | | 9.77 | % | | 7.91 | % |
Net interest margin (annualized) | | | 2.99 | % | | 2.69 | % | | 2.93 | % | | 2.63 | % |
Non-interest income as a percentage of average assets (annualized) | | | 0.25 | % | | 0.09 | % | | 0.15 | % | | 0.09 | % |
Non-interest expense to average assets (annualized) | | | 1.63 | % | | 1.49 | % | | 1.59 | % | | 1.49 | % |
Efficiency ratio | | | 50.5 | % | | 53.9 | % | | 51.8 | % | | 55.1 | % |
| | | | | | | | | | | | | |
Asset Quality | | | | | | | | | | | | | |
Non-performing assets to total assets | | | 0.01 | % | | - - | % | | 0.01 | % | | - - | % |
Non-performing loans to total loans | | | 0.01 | % | | - - | % | | 0.01 | % | | - - | % |
Allowance for loan credit losses to non-performing assets | | | 75.6 | x | | N/M | | | 75.6 | x | | N/M | |
Allowance for loan credit losses to total loans | | | 1.00 | % | | 1.01 | % | | 1.00 | % | | 1.01 | % |
Net charge-offs to average loans (annualized) | | | 0.03 | % | | - - | % | | 0.01 | % | | - - | % |
| | | | | | | | | | | | | |
Loans 30-89 days past due and accruing interest | | $ | - - | | $ | - - | | $ | - - | | $ | - - | |
90 days past due and still accruing interest | | | 267 | | | - - | | | 267 | | | - - | |
Non-accrual loans | | | - - | | | - - | | | - - | | | - - | |
Other real estate owned | | | - - | | | - - | | | - - | | | - - | |
Non-performing assets (1) | | | 267 | | | - - | | | 267 | | | - - | |
| | | | | | | | | | | | | |
Capital Ratios (Bank Level) | | | | | | | | | | | | | |
Equity / assets | | | 12.3 | % | | 12.2 | % | | 12.3 | % | | 12.2 | % |
Total risk-based capital ratio | | | 16.7 | % | | 16.3 | % | | 16.7 | % | | 16.3 | % |
Tier 1 risk-based capital ratio | | | 15.6 | % | | 15.3 | % | | 15.6 | % | | 15.3 | % |
Common equity tier 1 ratio | | | 15.6 | % | | 15.3 | % | | 15.6 | % | | 15.3 | % |
Leverage ratio | | | 12.9 | % | | 12.8 | % | | 12.9 | % | | 12.8 | % |
| | | | | | | | | | | | | |
Other Information | | | | | | | | | | | | | |
Number of full time equivalent employees | | | 140 | | | 141 | | | 140 | | | 141 | |
# Full service branch offices | | | 8 | | | 8 | | | 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. |
8
John Marshall Bancorp, Inc. | |||||||||||||||
| | | | | | | | | | | | | | | |
Consolidated Balance Sheets | |||||||||||||||
(Dollar amounts in thousands, except per share data) | |||||||||||||||
| | | | | | | | | | | | | | | |
| | | | | | | | | | | % Change | ||||
| | June 30 | | December 31, | | June 30 | | Last Six | | Year Over | |||||
| | 2026 | | 2025 | | 2025 | | Months | | Year | |||||
Assets | | (Unaudited) | | * | | (Unaudited) | | | | | | | |||
Cash and due from banks | | $ | 6,483 | | $ | 6,492 | | $ | 9,415 | | (0.1) | % | | (31.1) | % |
Interest-bearing deposits in banks | | | 152,543 | | | 123,482 | | | 107,511 | | 23.5 | % | | 41.9 | % |
Securities available-for-sale, at fair value | | | 126,873 | | | 123,852 | | | 125,498 | | 2.4 | % | | 1.1 | % |
Securities held-to-maturity at amortized cost, fair value of $75,734, $77,575, and $77,448 at 6/30/2026, 12/31/2025, and 6/30/2025, respectively | | | 86,792 | | | 88,421 | | | 90,264 | | (1.8) | % | | (3.8) | % |
Restricted securities, at cost | | | 7,721 | | | 7,644 | | | 7,637 | | 1.0 | % | | 1.1 | % |
Equity securities, at fair value | | | 3,100 | | | 2,843 | | | 3,096 | | 9.0 | % | | 0.1 | % |
Loans, net of unearned income | | | 2,014,939 | | | 1,975,360 | | | 1,916,915 | | 2.0 | % | | 5.1 | % |
Allowance for loan credit losses | | | (20,196) | | | (19,805) | | | (19,298) | | 2.0 | % | | 4.7 | % |
Net loans | | | 1,994,743 | | | 1,955,555 | | | 1,897,617 | | 2.0 | % | | 5.1 | % |
Bank premises and equipment, net | | | 1,082 | | | 1,315 | | | 1,519 | | (17.7) | % | | (28.8) | % |
Accrued interest receivable | | | 6,001 | | | 5,890 | | | 5,844 | | 1.9 | % | | 2.7 | % |
Right of use assets | | | 4,024 | | | 4,551 | | | 4,449 | | (11.6) | % | | (9.6) | % |
Other assets | | | 13,059 | | | 12,505 | | | 15,103 | | 4.4 | % | | (13.5) | % |
Total assets | | $ | 2,402,421 | | $ | 2,332,550 | | $ | 2,267,953 | | 3.0 | % | | 5.9 | % |
| | | | | | | | | | | | | | | |
Liabilities and Shareholders' Equity | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Liabilities | | | | | | | | | | | | | | | |
Deposits: | | | | | | | | | | | | | | | |
Non-interest bearing demand deposits | | $ | 451,543 | | $ | 432,733 | | $ | 438,628 | | 4.3 | % | | 2.9 | % |
Interest-bearing demand deposits | | | 698,048 | | | 745,323 | | | 681,230 | | (6.3) | % | | 2.5 | % |
Savings deposits | | | 31,758 | | | 34,683 | | | 42,966 | | (8.4) | % | | (26.1) | % |
Time deposits | | | 811,636 | | | 759,546 | | | 734,069 | | 6.9 | % | | 10.6 | % |
Total deposits | | | 1,992,985 | | | 1,972,285 | | | 1,896,893 | | 1.0 | % | | 5.1 | % |
Federal funds purchased | | | 40,000 | | | - - | | | 16,500 | | N/M | | | N/M | |
Federal Home Loan Bank advances | | | 56,000 | | | 56,000 | | | 56,000 | | - - | % | | - - | % |
Subordinated debt, net | | | 24,916 | | | 24,875 | | | 24,833 | | 0.2 | % | | 0.3 | % |
Accrued interest payable | | | 2,055 | | | 2,124 | | | 2,280 | | (3.2) | % | | (9.9) | % |
Lease liabilities | | | 4,265 | | | 4,819 | | | 4,800 | | (11.5) | % | | (11.1) | % |
Other liabilities | | | 8,416 | | | 6,809 | | | 12,915 | | 23.6 | % | | (34.8) | % |
Total liabilities | | | 2,128,637 | | | 2,066,912 | | | 2,014,221 | | 3.0 | % | | 5.7 | % |
| | | | | | | | | | | | | | | |
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, 14,112,223 at 6/30/2026 including 67,821 unvested shares, 14,214,603 at 12/31/2025 including 68,547 unvested shares, and 14,231,389 at 6/30/2025 including 50,033 unvested shares | | | 140 | | | 141 | | | 142 | | (0.7) | % | | (1.4) | % |
Additional paid-in capital | | | 93,918 | | | 95,699 | | | 96,485 | | (1.9) | % | | (2.7) | % |
Retained earnings | | | 187,485 | | | 176,913 | | | 165,594 | | 6.0 | % | | 13.2 | % |
Accumulated other comprehensive loss | | | (7,759) | | | (7,115) | | | (8,489) | | 9.1 | % | | (8.6) | % |
Total shareholders' equity | | | 273,784 | | | 265,638 | | | 253,732 | | 3.1 | % | | 7.9 | % |
Total liabilities and shareholders' equity | | $ | 2,402,421 | | $ | 2,332,550 | | $ | 2,267,953 | | 3.0 | % | | 5.9 | % |
* Derived from audited consolidated financial statements.
9
John Marshall Bancorp, Inc. | ||||||||||||||||||
| | | | | | | | | | |||||||||
Consolidated Statements of Income | ||||||||||||||||||
(Dollar amounts in thousands, except per share data) | ||||||||||||||||||
| | | | | | | | | | | | | | | | | | |
| | Three Months Ended | | | | | Six Months Ended | | | | ||||||||
| | June 30, | | | | | June 30, | | | | ||||||||
| | 2026 | | 2025 | | % Change | | 2026 | | 2025 | | % Change | ||||||
| | (Unaudited) | | (Unaudited) | | | | | (Unaudited) | | (Unaudited) | | | | ||||
Interest and Dividend Income | | | | | | | | | | | | | | | | | | |
Interest and fees on loans | | $ | 27,224 | | $ | 25,220 | | 7.9 | % | | $ | 53,811 | | $ | 50,027 | | 7.6 | % |
Interest on investment securities, taxable | | | 1,268 | | | 1,071 | | 18.4 | % | | | 2,434 | | | 2,102 | | 15.8 | % |
Interest on investment securities, tax-exempt | | | 9 | | | 9 | | - - | % | | | 18 | | | 18 | | - - | % |
Dividends | | | 119 | | | 121 | | (1.7) | % | | | 234 | | | 244 | | (4.1) | % |
Interest on deposits in other banks | | | 1,129 | | | 1,422 | | (20.6) | % | | | 2,335 | | | 2,756 | | (15.3) | % |
Total interest and dividend income | | | 29,749 | | | 27,843 | | 6.8 | % | | | 58,832 | | | 55,147 | | 6.7 | % |
| | | | | | | | | | | | | | | | | | |
Interest Expense | | | | | | | | | | | | | | | | | | |
Deposits | | | 11,517 | | | 12,001 | | (4.0) | % | | | 23,190 | | | 24,300 | | (4.6) | % |
Federal funds purchased | | | 4 | | | 2 | | 100.0 | % | | | 4 | | | 2 | | 100.0 | % |
Federal Home Loan Bank advances | | | 545 | | | 565 | | (3.5) | % | | | 1,097 | | | 1,124 | | (2.4) | % |
Subordinated debt | | | 349 | | | 349 | | - - | % | | | 698 | | | 698 | | - - | % |
Total interest expense | | | 12,415 | | | 12,917 | | (3.9) | % | | | 24,989 | | | 26,124 | | (4.3) | % |
| | | | | | | | | | | | | | | | | | |
Net interest income | | | 17,334 | | | 14,926 | | 16.1 | % | | | 33,843 | | | 29,023 | | 16.6 | % |
| | | | | | | | | | | | | | | | | | |
Provision for Credit Losses | | | 258 | | | 537 | | (52.0) | % | | | 281 | | | 707 | | (60.3) | % |
| | | | | | | | | | | | | | | | | | |
Net interest income after provision for credit losses | | | 17,076 | | | 14,389 | | 18.7 | % | | | 33,562 | | | 28,316 | | 18.5 | % |
| | | | | | | | | | | | | | | | | | |
Non-interest Income | | | | | | | | | | | | | | | | | | |
Service charges on deposit accounts | | | 86 | | | 86 | | - - | % | | | 171 | | | 168 | | 1.8 | % |
Other service charges and fees | | | 184 | | | 141 | | 30.5 | % | | | 322 | | | 294 | | 9.5 | % |
Gain on sale of other assets | | | 835 | | | - - | | N/M | | | | 835 | | | - - | | N/M | |
Insurance commissions | | | 29 | | | 33 | | (12.1) | % | | | 93 | | | 246 | | (62.2) | % |
Gain on sale of government guaranteed loans | | | - - | | | 61 | | (100.0) | % | | | 6 | | | 97 | | (93.8) | % |
Non-qualified deferred compensation plan asset gains, net | | | 262 | | | 182 | | 44.0 | % | | | 249 | | | 206 | | 20.9 | % |
Other income | | | 47 | | | 4 | | N/M | | | | 52 | | | 1 | | N/M | |
Total non-interest income | | | 1,443 | | | 507 | | 184.6 | % | | | 1,728 | | | 1,012 | | 70.8 | % |
| | | | | | | | | | | | | | | | | | |
Non-interest Expenses | | | | | | | | | | | | | | | | | | |
Salaries and employee benefits | | | 6,157 | | | 5,178 | | 18.9 | % | | | 11,777 | | | 10,277 | | 14.6 | % |
Occupancy expense of premises | | | 396 | | | 407 | | (2.7) | % | | | 802 | | | 814 | | (1.5) | % |
Furniture and equipment expenses | | | 347 | | | 315 | | 10.2 | % | | | 693 | | | 630 | | 10.0 | % |
Other expenses | | | 2,590 | | | 2,413 | | 7.3 | % | | | 5,141 | | | 4,840 | | 6.2 | % |
Total non-interest expenses | | | 9,490 | | | 8,313 | | 14.2 | % | | | 18,413 | | | 16,561 | | 11.2 | % |
| | | | | | | | | | | | | | | | | | |
Income before income taxes | | | 9,029 | | | 6,583 | | 37.2 | % | | | 16,877 | | | 12,767 | | 32.2 | % |
| | | | | | | | | | | | | | | | | | |
Income Tax Expense | | | 2,010 | | | 1,480 | | 35.8 | % | | | 3,756 | | | 2,854 | | 31.6 | % |
| | | | | | | | | | | | | | | | | | |
Net income | | $ | 7,019 | | $ | 5,103 | | 37.5 | % | | $ | 13,121 | | $ | 9,913 | | 32.4 | % |
| | | | | | | | | | | | | | | | | | |
Earnings Per Share | | | | | | | | | | | | | | | | | | |
Basic | | $ | 0.50 | | $ | 0.36 | | 38.9 | % | | $ | 0.93 | | $ | 0.69 | | 34.8 | % |
Diluted | | $ | 0.50 | | $ | 0.36 | | 38.9 | % | | $ | 0.93 | | $ | 0.69 | | 34.8 | % |
10
John Marshall Bancorp, Inc. | |||||||||||||||||||
| | | | | | | | | | | | | | | | | | | |
Historical Trends - Quarterly Financial Data (Unaudited) | |||||||||||||||||||
(Dollar amounts in thousands, except per share data) | |||||||||||||||||||
| | | | | | | | | | | | | | | | | | | |
| |||||||||||||||||||
| | 2026 | | | 2025 | | |||||||||||||
| | June 30 | | March 31 | | December 31 | | September 30 | | June 30 | | March 31 | | ||||||
Profitability for the Quarter: | | | | | | | | | | | | | | | | | | | |
Interest income | | $ | 29,749 | | $ | 29,082 | | $ | 29,164 | | $ | 28,945 | | $ | 27,843 | | $ | 27,305 | |
Interest expense | | | 12,415 | | | 12,573 | | | 13,224 | | | 13,345 | | | 12,917 | | | 13,208 | |
Net interest income | | | 17,334 | | | 16,509 | | | 15,940 | | | 15,600 | | | 14,926 | | | 14,097 | |
Provision for credit losses | | | 258 | | | 23 | | | 624 | | | 356 | | | 537 | | | 170 | |
Non-interest income | | | 1,443 | | | 284 | | | 409 | | | 653 | | | 507 | | | 505 | |
Non-interest expenses | | | 9,490 | | | 8,923 | | | 7,971 | | | 9,034 | | | 8,313 | | | 8,248 | |
Income before income taxes | | | 9,029 | | | 7,848 | | | 7,754 | | | 6,863 | | | 6,583 | | | 6,184 | |
Income tax expense | | | 2,010 | | | 1,746 | | | 1,838 | | | 1,459 | | | 1,480 | | | 1,374 | |
Net income | | $ | 7,019 | | $ | 6,101 | | $ | 5,916 | | $ | 5,404 | | $ | 5,103 | | $ | 4,810 | |
| | | | | | | | | | | | | | | | | | | |
Financial Performance: | | | | | | | | | | | | | | | | | | | |
Return on average assets (annualized) | | | 1.20 | % | | 1.06 | % | | 1.01 | % | | 0.94 | % | | 0.91 | % | | 0.87 | % |
Return on average equity (annualized) | | | 10.34 | % | | 9.19 | % | | 8.89 | % | | 8.31 | % | | 8.06 | % | | 7.76 | % |
Net interest margin (annualized) | | | 2.99 | % | | 2.87 | % | | 2.73 | % | | 2.72 | % | | 2.69 | % | | 2.58 | % |
Non-interest income as a percentage of average assets (annualized) | | | 0.25 | % | | 0.05 | % | | 0.07 | % | | 0.11 | % | | 0.09 | % | | 0.09 | % |
Non-interest expense to average assets (annualized) | | | 1.63 | % | | 1.54 | % | | 1.36 | % | | 1.57 | % | | 1.49 | % | | 1.50 | % |
Efficiency ratio | | | 50.5 | % | | 53.1 | % | | 48.8 | % | | 55.6 | % | | 53.9 | % | | 56.5 | % |
| | | | | | | | | | | | | | | | | | | |
Per Share Data: | | | | | | | | | | | | | | | | | | | |
Earnings per common share - basic | | $ | 0.50 | | $ | 0.43 | | $ | 0.42 | | $ | 0.38 | | $ | 0.36 | | $ | 0.34 | |
Earnings per common share - diluted | | $ | 0.50 | | $ | 0.43 | | $ | 0.42 | | $ | 0.38 | | $ | 0.36 | | $ | 0.34 | |
Book value per share | | $ | 19.40 | | $ | 19.00 | | $ | 18.69 | | $ | 18.27 | | $ | 17.83 | | $ | 17.72 | |
Dividends declared per share | | $ | 0.09 | | $ | 0.09 | | $ | - - | | $ | - - | | $ | 0.30 | | $ | - - | |
Weighted average common shares (basic) | | | 14,044,290 | | | 14,125,649 | | | 14,142,249 | | | 14,172,953 | | | 14,221,597 | | | 14,223,046 | |
Weighted average common shares (diluted) | | | 14,044,290 | | | 14,125,649 | | | 14,142,249 | | | 14,172,953 | | | 14,223,418 | | | 14,241,114 | |
Common shares outstanding at end of period | | | 14,112,223 | | | 14,112,259 | | | 14,214,603 | | | 14,216,781 | | | 14,231,389 | | | 14,275,885 | |
| | | | | | | | | | | | | | | | | | | |
Non-interest Income: | | | | | | | | | | | | | | | | | | | |
Service charges on deposit accounts | | $ | 86 | | $ | 85 | | $ | 81 | | $ | 87 | | $ | 86 | | $ | 82 | |
Other service charges and fees | | | 184 | | | 138 | | | 142 | | | 135 | | | 141 | | | 153 | |
Gain on sale of other assets | | | 835 | | | - - | | | - - | | | - - | | | - - | | | - - | |
Insurance commissions | | | 29 | | | 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 | | | 262 | | | (13) | | | 38 | | | 158 | | | 182 | | | 24 | |
Other income (loss) | | | 47 | | | 4 | | | 5 | | | 109 | | | 4 | | | (3) | |
Total non-interest income | | $ | 1,443 | | $ | 284 | | $ | 409 | | $ | 653 | | $ | 507 | | $ | 505 | |
| | | | | | | | | | | | | | | | | | | |
Non-interest Expenses: | | | | | | | | | | | | | | | | | | | |
Salaries and employee benefits | | $ | 6,157 | | $ | 5,621 | | $ | 4,758 | | $ | 5,693 | | $ | 5,178 | | $ | 5,099 | |
Occupancy expense of premises | | | 396 | | | 406 | | | 326 | | | 405 | | | 407 | | | 407 | |
Furniture and equipment expenses | | | 347 | | | 346 | | | 326 | | | 329 | | | 315 | | | 316 | |
Other expenses | | | 2,590 | | | 2,550 | | | 2,561 | | | 2,607 | | | 2,413 | | | 2,426 | |
Total non-interest expenses | | $ | 9,490 | | $ | 8,923 | | $ | 7,971 | | $ | 9,034 | | $ | 8,313 | | $ | 8,248 | |
| | | | | | | | | | | | | | | | | | | |
Balance Sheets at Quarter End: | | | | | | | | | | | | | | | | | | | |
Total loans, net of unearned income | | $ | 2,014,939 | | $ | 1,973,743 | | $ | 1,975,360 | | $ | 1,938,108 | | $ | 1,916,915 | | $ | 1,870,472 | |
Allowance for loan credit losses | | | (20,196) | | | (19,983) | | | (19,805) | | | (19,714) | | | (19,298) | | | (18,826) | |
Investment securities | | | 224,486 | | | 224,367 | | | 222,760 | | | 216,119 | | | 226,495 | | | 226,163 | |
Interest-earning assets | | | 2,391,968 | | | 2,339,171 | | | 2,321,602 | | | 2,309,005 | | | 2,250,921 | | | 2,255,154 | |
Total assets | | | 2,402,421 | | | 2,352,350 | | | 2,332,550 | | | 2,324,544 | | | 2,267,953 | | | 2,272,432 | |
Total deposits | | | 1,992,985 | | | 1,987,728 | | | 1,972,285 | | | 1,968,828 | | | 1,896,893 | | | 1,922,175 | |
Total interest-bearing liabilities | | | 1,662,358 | | | 1,610,427 | | | 1,620,427 | | | 1,602,757 | | | 1,555,598 | | | 1,565,165 | |
Total shareholders' equity | | | 273,784 | | | 268,147 | | | 265,638 | | | 259,692 | | | 253,732 | | | 252,958 | |
| | | | | | | | | | | | | | | | | | | |
Quarterly Average Balance Sheets: | | | | | | | | | | | | | | | | | | | |
Total loans, net of unearned income | | $ | 1,978,806 | | $ | 1,974,165 | | $ | 1,946,386 | | $ | 1,912,275 | | $ | 1,868,290 | | $ | 1,868,303 | |
Investment securities | | | 227,693 | | | 225,904 | | | 220,324 | | | 221,802 | | | 229,171 | | | 231,479 | |
Interest-earning assets | | | 2,327,773 | | | 2,331,813 | | | 2,319,551 | | | 2,275,386 | | | 2,224,806 | | | 2,220,730 | |
Total assets | | | 2,339,582 | | | 2,343,457 | | | 2,331,563 | | | 2,289,352 | | | 2,238,955 | | | 2,233,761 | |
Total deposits | | | 1,968,881 | | | 1,977,321 | | | 1,970,486 | | | 1,934,456 | | | 1,883,425 | | | 1,884,969 | |
Total interest-bearing liabilities | | | 1,589,802 | | | 1,618,347 | | | 1,601,506 | | | 1,571,390 | | | 1,530,811 | | | 1,540,974 | |
Total shareholders' equity | | | 272,346 | | | 269,327 | | | 264,175 | | | 257,993 | | | 254,071 | | | 251,559 | |
| | | | | | | | | | | | | | | | | | | |
Financial Measures: | | | | | | | | | | | | | | | | | | | |
Average equity to average assets | | | 11.6 | % | | 11.5 | % | | 11.3 | % | | 11.3 | % | | 11.3 | % | | 11.3 | % |
Investment securities to earning assets | | | 9.4 | % | | 9.6 | % | | 9.6 | % | | 9.4 | % | | 10.1 | % | | 10.0 | % |
Loans to earning assets | | | 84.2 | % | | 84.4 | % | | 85.1 | % | | 83.9 | % | | 85.2 | % | | 82.9 | % |
Loans to assets | | | 83.9 | % | | 83.9 | % | | 84.7 | % | | 83.4 | % | | 84.5 | % | | 82.3 | % |
Loans to deposits | | | 101.1 | % | | 99.3 | % | | 100.2 | % | | 98.4 | % | | 101.1 | % | | 97.3 | % |
| | | | | | | | | | | | | | | | | | | |
Capital Ratios (Bank Level): | | | | | | | | | | | | | | | | | | | |
Equity / assets | | | 12.3 | % | | 12.2 | % | | 12.2 | % | | 12.1 | % | | 12.2 | % | | 11.9 | % |
Total risk-based capital ratio | | | 16.7 | % | | 16.5 | % | | 16.3 | % | | 16.6 | % | | 16.3 | % | | 16.5 | % |
Tier 1 risk-based capital ratio | | | 15.6 | % | | 15.4 | % | | 15.2 | % | | 15.5 | % | | 15.3 | % | | 15.4 | % |
Common equity tier 1 ratio | | | 15.6 | % | | 15.4 | % | | 15.2 | % | | 15.5 | % | | 15.3 | % | | 15.4 | % |
Leverage ratio | | | 12.9 | % | | 12.6 | % | | 12.5 | % | | 12.7 | % | | 12.8 | % | | 12.6 | % |
11
John Marshall Bancorp, Inc. | ||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | |
Loan, Deposit and Borrowing Detail (Unaudited) | ||||||||||||||||||||||||
(Dollar amounts in thousands) | ||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | |
| 2026 | | 2025 | | ||||||||||||||||||||
| 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 | |
Commercial business loans | $ | 51,062 | 2.5 | % | $ | 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 | | 331,407 | 16.5 | % | | 321,858 | 16.3 | % | | 323,486 | 16.4 | % | | 327,269 | 16.9 | % | | 320,061 | 16.7 | % | | 318,087 | 17.1 | % |
Total business loans | | 382,469 | 19.0 | % | | 370,763 | 18.8 | % | | 373,339 | 18.9 | % | | 373,879 | 19.3 | % | | 363,343 | 19.0 | % | | 364,690 | 19.6 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Investor real estate loans | | 767,823 | 38.3 | % | | 762,158 | 38.8 | % | | 756,620 | 38.5 | % | | 770,405 | 39.9 | % | | 777,591 | 40.7 | % | | 759,002 | 40.7 | % |
Construction & development loans | | 227,132 | 11.3 | % | | 228,591 | 11.6 | % | | 222,659 | 11.3 | % | | 193,444 | 10.0 | % | | 186,409 | 9.7 | % | | 173,270 | 9.3 | % |
Multi-family loans | | 97,260 | 4.8 | % | | 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 | | 1,092,215 | 54.4 | % | | 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 | | 534,000 | 26.6 | % | | 513,650 | 26.1 | % | | 522,990 | 26.5 | % | | 501,104 | 25.9 | % | | 489,522 | 25.6 | % | | 472,747 | 25.3 | % |
Consumer loans | | 663 | 0.0 | % | | 760 | 0.0 | % | | 1,157 | 0.1 | % | | 1,029 | 0.1 | % | | 998 | 0.1 | % | | 809 | 0.0 | % |
Total loans | $ | 2,009,347 | 100.0 | % | $ | 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 | | (20,196) | | | | (19,983) | | | | (19,805) | | | | (19,714) | | | | (19,298) | | | | (18,826) | | |
Net deferred loan costs | | 5,592 | | | | 4,908 | | | | 5,084 | | | | 4,770 | | | | 4,637 | | | | 4,398 | | |
Net loans | $ | 1,994,743 | | | $ | 1,953,760 | | | $ | 1,955,555 | | | $ | 1,918,394 | | | $ | 1,897,617 | | | $ | 1,851,646 | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| 2026 | | 2025 | | ||||||||||||||||||||
| 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 | |
Non-interest bearing demand deposits | $ | 451,543 | 22.7 | % | $ | 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) | | 332,551 | 16.7 | % | | 362,057 | 18.2 | % | | 380,029 | 19.3 | % | | 366,655 | 18.6 | % | | 344,931 | 18.2 | % | | 355,752 | 18.5 | % |
Money market accounts(1) | | 365,497 | 18.3 | % | | 372,107 | 18.7 | % | | 365,294 | 18.5 | % | | 360,640 | 18.3 | % | | 336,299 | 17.7 | % | | 349,634 | 18.2 | % |
Savings accounts | | 31,758 | 1.6 | % | | 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 | | 371,047 | 18.7 | % | | 340,851 | 17.1 | % | | 337,605 | 17.1 | % | | 337,800 | 17.2 | % | | 324,343 | 17.1 | % | | 322,630 | 16.8 | % |
Less than $250,000 | | 82,626 | 4.1 | % | | 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 | % | | - - | 0.0 | % | | 249 | 0.0 | % | | 249 | 0.0 | % | | 249 | 0.1 | % | | 249 | 0.0 | % |
IntraFi® certificates of deposit | | 36,351 | 1.8 | % | | 39,047 | 2.0 | % | | 35,096 | 1.8 | % | | 29,451 | 1.5 | % | | 27,015 | 1.4 | % | | 36,522 | 1.9 | % |
Brokered deposits | | 321,613 | 16.1 | % | | 301,886 | 15.2 | % | | 301,886 | 15.3 | % | | 301,962 | 15.3 | % | | 301,962 | 15.9 | % | | 297,678 | 15.5 | % |
Total deposits | $ | 1,992,985 | 100.0 | % | $ | 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 | $ | 40,000 | 33.1 | % | $ | - - | 0.0 | % | $ | - - | 0.0 | % | $ | - - | 0.0 | % | $ | 16,500 | 17.0 | % | $ | - - | 0.0 | % |
Federal Home Loan Bank advances | | 56,000 | 46.3 | % | | 56,000 | 69.2 | % | | 56,000 | 69.2 | % | | 56,000 | 69.3 | % | | 56,000 | 57.5 | % | | 56,000 | 69.3 | % |
Subordinated debt, net | | 24,916 | 20.6 | % | | 24,896 | 30.8 | % | | 24,875 | 30.8 | % | | 24,854 | 30.7 | % | | 24,833 | 25.5 | % | | 24,812 | 30.7 | % |
Total borrowings | $ | 120,916 | 100.0 | % | $ | 80,896 | 100.0 | % | $ | 80,875 | 100.0 | % | $ | 80,854 | 100.0 | % | $ | 97,333 | 100.0 | % | $ | 80,812 | 100.0 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total deposits and borrowings | $ | 2,113,901 | | | $ | 2,068,624 | | | $ | 2,053,160 | | | $ | 2,049,682 | | | $ | 1,994,226 | | | $ | 2,002,987 | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Core customer funding sources (2) | $ | 1,671,372 | 80.0 | % | $ | 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) | | 417,613 | 20.0 | % | | 357,886 | 17.5 | % | | 358,135 | 17.7 | % | | 358,211 | 17.7 | % | | 374,711 | 19.0 | % | | 353,927 | 17.9 | % |
Total funding sources | $ | 2,088,985 | 100.0 | % | $ | 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. |
12
John Marshall Bancorp, Inc. | | ||||||||||||||||
| | | | | | | | | | | | | | | | | |
Average Balance Sheets, Interest and Rates (unaudited) | | ||||||||||||||||
(Dollar amounts in thousands) | | ||||||||||||||||
| | | | | | | | | | | | | | | | | |
| | Six Months Ended June 30, 2026 | | Six Months Ended June 30, 2025 |
| ||||||||||||
| | | | | Interest Income / | | Average | | | | | Interest Income / | | Average |
| ||
(Dollars in thousands) | | Average Balance | | Expense | | Rate(3) | | Average Balance | | Expense | | Rate(3) |
| ||||
Assets: |
| | |
| | |
| |
| | |
| | |
| | |
Securities: |
| | |
| | |
| |
| | |
| | |
| | |
Taxable | | $ | 225,425 |
| $ | 2,668 |
| 2.39 | % | $ | 228,940 |
| $ | 2,346 |
| 2.07 | % |
Tax-exempt(1) | |
| 1,378 |
| | 22 |
| 3.22 | % |
| 1,379 |
| | 22 |
| 3.22 | % |
Total securities | | $ | 226,803 | | $ | 2,690 |
| 2.39 | % | $ | 230,319 | | $ | 2,368 |
| 2.07 | % |
Loans, net of unearned income(2): | |
| | |
| |
| | |
| | |
| |
| | |
Taxable | |
| 1,956,807 | |
| 53,449 |
| 5.51 | % |
| 1,851,710 | |
| 49,770 |
| 5.42 | % |
Tax-exempt(1) | |
| 19,691 | |
| 459 |
| 4.70 | % |
| 16,586 | |
| 325 |
| 3.95 | % |
Total loans, net of unearned income | | $ | 1,976,498 | | $ | 53,908 |
| 5.50 | % | $ | 1,868,296 | | $ | 50,095 |
| 5.41 | % |
Interest-bearing deposits in other banks | | $ | 126,480 | | $ | 2,335 |
| 3.72 | % | $ | 124,164 | | $ | 2,756 |
| 4.48 | % |
Total interest-earning assets | | $ | 2,329,781 | | $ | 58,933 |
| 5.10 | % | $ | 2,222,779 | | $ | 55,219 |
| 5.01 | % |
Total non-interest earning assets | |
| 11,727 | | | |
| | |
| 13,020 | | | |
| | |
Total assets | | $ | 2,341,508 | | | |
| | | $ | 2,235,799 | | | |
| | |
Liabilities & Shareholders’ Equity: | |
| | |
| |
| | |
| | |
| |
| | |
Interest-bearing deposits | |
| | |
| |
| | |
| | |
| |
| | |
NOW accounts | | $ | 357,407 | | $ | 3,720 |
| 2.10 | % | $ | 343,682 | | $ | 3,961 | | 2.32 | % |
Money market accounts | |
| 369,827 | |
| 4,361 |
| 2.38 | % |
| 343,810 | | | 4,600 | | 2.70 | % |
Savings accounts | |
| 34,051 | |
| 138 |
| 0.82 | % |
| 42,574 | | | 211 | | 1.00 | % |
Time deposits | |
| 761,456 | |
| 14,971 |
| 3.96 | % |
| 724,806 | | | 15,528 | | 4.32 | % |
Total interest-bearing deposits | | $ | 1,522,741 | | $ | 23,190 |
| 3.07 | % | $ | 1,454,872 | | $ | 24,300 | | 3.37 | % |
Federal funds purchased | | | 222 | | | 4 | | 3.63 | % | | 92 | | | 2 | | 4.38 | % |
Subordinated debt | |
| 24,893 | |
| 698 |
| 5.65 | % |
| 24,810 | | | 698 |
| 5.67 | % |
Federal Home Loan Bank advances | | | 55,917 | | | 1,097 | | 3.96 | % | | 56,000 | | | 1,124 | | 4.05 | % |
Total interest-bearing liabilities | | $ | 1,603,773 | | $ | 24,989 |
| 3.14 | % | $ | 1,535,774 | | $ | 26,124 |
| 3.43 | % |
Demand deposits | |
| 450,336 | | | |
| | |
| 429,322 | | | |
| | |
Other liabilities | |
| 16,554 | | | |
| | |
| 17,975 | | | |
| | |
Total liabilities | | $ | 2,070,663 | | | |
| | | $ | 1,983,071 | | | |
| | |
Shareholders’ equity | | $ | 270,845 | | | |
| | | $ | 252,728 | | | |
| | |
Total liabilities and shareholders’ equity | | $ | 2,341,508 | | | |
| | | $ | 2,235,799 | | | |
| | |
| | | | | | | | | | | | | | | | | |
Tax-equivalent net interest income and spread (Non-GAAP)(1) | | | | | $ | 33,944 | | 1.96 | % | | | | $ | 29,095 | | 1.58 | % |
Less: tax-equivalent adjustment | | | | | | 101 | | | | | | | | 72 | | | |
Net interest income and spread (GAAP) | | | | | $ | 33,843 | | 1.95 | % | | | | $ | 29,023 | | 1.57 | % |
| | | | | | | | | | | | | | | | | |
Interest income/earning assets | | | | | | | | 5.09 | % | | | | | | | 5.00 | % |
Interest expense/earning assets | | | | | | | | 2.16 | % | | | | | | | 2.37 | % |
Net interest margin | | | | | | | | 2.93 | % | | | | | | | 2.63 | % |
| (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 $101 thousand and $72 thousand for the six months ended June 30, 2026 and June 30, 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. |
13
John Marshall Bancorp, Inc. | | ||||||||||||||||
| | | | | | | | | | | | | | | | | |
Average Balance Sheets, Interest and Rates (unaudited) | | ||||||||||||||||
(Dollar amounts in thousands) | | ||||||||||||||||
| | | | | | | | | | | | | | | | | |
| | Three Months Ended June 30, 2026 | | Three Months Ended June 30, 2025 |
| ||||||||||||
| | | | | Interest Income / | | Average | | | | | Interest Income / | | Average |
| ||
(Dollars in thousands) | | Average Balance | | Expense | | Rate(3) | | Average Balance | | Expense | | Rate(3) |
| ||||
Assets: |
| | |
| | |
| |
| | |
| | |
| | |
Securities: |
| | |
| | |
| |
| | |
| | |
| | |
Taxable | | $ | 226,316 |
| $ | 1,387 |
| 2.46 | % | $ | 227,792 |
| $ | 1,192 |
| 2.10 | % |
Tax-exempt(1) | |
| 1,377 |
| | 11 |
| 3.20 | % |
| 1,379 |
| | 11 |
| 3.20 | % |
Total securities | | $ | 227,693 | | $ | 1,398 |
| 2.46 | % | $ | 229,171 | | $ | 1,203 |
| 2.11 | % |
Loans, net of unearned income(2): | |
| | |
| |
| | |
| | |
| |
| | |
Taxable | |
| 1,959,821 | |
| 27,045 |
| 5.54 | % |
| 1,851,793 | |
| 25,092 |
| 5.43 | % |
Tax-exempt(1) | |
| 18,985 | |
| 227 |
| 4.80 | % |
| 16,497 | |
| 163 |
| 3.96 | % |
Total loans, net of unearned income | | $ | 1,978,806 | | $ | 27,272 |
| 5.53 | % | $ | 1,868,290 | | $ | 25,255 |
| 5.42 | % |
Interest-bearing deposits in other banks | | $ | 121,274 | | $ | 1,129 |
| 3.73 | % | $ | 127,345 | | $ | 1,422 |
| 4.48 | % |
Total interest-earning assets | | $ | 2,327,773 | | $ | 29,799 |
| 5.13 | % | $ | 2,224,806 | | $ | 27,880 |
| 5.03 | % |
Total non-interest earning assets | |
| 11,809 | | | |
| | |
| 14,149 | | | |
| | |
Total assets | | $ | 2,339,582 | | | |
| | | $ | 2,238,955 | | | |
| | |
Liabilities & Shareholders’ Equity: | |
| | |
| |
| | |
| | |
| |
| | |
Interest-bearing deposits | |
| | |
| |
| | |
| | |
| |
| | |
NOW accounts | | $ | 343,551 | | $ | 1,793 | | 2.09 | % | $ | 330,306 | | $ | 1,834 | | 2.23 | % |
Money market accounts | |
| 364,861 | | | 2,178 | | 2.39 | % |
| 348,321 | | | 2,318 | | 2.67 | % |
Savings accounts | |
| 33,141 | | | 69 | | 0.84 | % |
| 42,092 | | | 107 | | 1.02 | % |
Time deposits | |
| 766,465 | | | 7,477 | | 3.91 | % |
| 728,908 | | | 7,742 | | 4.26 | % |
Total interest-bearing deposits | | $ | 1,508,018 | | $ | 11,517 | | 3.06 | % | $ | 1,449,627 | | $ | 12,001 | | 3.32 | % |
Federal funds purchased | | | 440 | | | 4 | | 3.65 | % | | 182 | | | 2 | | 4.41 | % |
Subordinated debt | |
| 24,904 | | | 349 |
| 5.62 | % |
| 24,820 | | | 349 |
| 5.64 | % |
Federal Home Loan Bank advances | | | 56,440 | | | 545 | | 3.87 | % | | 56,182 | | | 565 | | 4.03 | % |
Total interest-bearing liabilities | | $ | 1,589,802 | | $ | 12,415 |
| 3.13 | % | $ | 1,530,811 | | $ | 12,917 |
| 3.38 | % |
Demand deposits | |
| 460,863 | | | |
| | |
| 433,798 | | | |
| | |
Other liabilities | |
| 16,571 | | | |
| | |
| 20,275 | | | |
| | |
Total liabilities | | $ | 2,067,236 | | | |
| | | $ | 1,984,884 | | | |
| | |
Shareholders’ equity | | $ | 272,346 | | | |
| | | $ | 254,071 | | | |
| | |
Total liabilities and shareholders’ equity | | $ | 2,339,582 | | | |
| | | $ | 2,238,955 | | | |
| | |
| | | | | | | | | | | | | | | | | |
Tax-equivalent net interest income and spread (Non-GAAP)(1) | | | | | $ | 17,384 | | 2.00 | % | | | | $ | 14,963 | | 1.65 | % |
Less: tax-equivalent adjustment | | | | | | 50 | | | | | | | | 37 | | | |
Net interest income and spread (GAAP) | | | | | $ | 17,334 | | 2.00 | % | | | | $ | 14,926 | | 1.64 | % |
| | | | | | | | | | | | | | | | | |
Interest income/earning assets | | | | | | | | 5.13 | % | | | | | | | 5.02 | % |
Interest expense/earning assets | | | | | | | | 2.14 | % | | | | | | | 2.33 | % |
Net interest margin | | | | | | | | 2.99 | % | | | | | | | 2.69 | % |
| (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 $50 thousand and $37 thousand for the three months ended June 30, 2026 and June 30, 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. |
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