8-K
John Marshall Bancorp, Inc. (JMSB)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 29, 2025
John Marshall Bancorp, Inc.
(Exact name of registrant as specified in its charter)
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|---|---|---|
| Virginia | 001-41315 | 81-5424879 |
| (State or other jurisdiction<br><br>of incorporation) | (Commission<br><br>File Number) | (IRS Employer<br><br>Identification No.) |
1943 Isaac Newton Square East , Suite 100
Reston , Virginia **** 20190
(Address, including zip code, of principal executive offices)
Registrant’s telephone number, including area code: ( 703 ) 584-0840
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class registered | Trading symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common Stock, par value $0.01 per share | JMSB | The Nasdaq Stock Market LLC |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☒
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☒
Item 2.02 Results of Operations and Financial Condition.
On October 29, 2025, John Marshall Bancorp, Inc. (the “Company”) issued a press release announcing its results of operations and financial condition for the quarter ended September 30, 2025. A copy of the press release is included as Exhibit 99.1 to this report.
Item 9.01 Financial Statements and Exhibits.
| Exhibits |
|---|
| Exhibit No. | Description | |
|---|---|---|
| 99.1 | | Press release dated October 29, 2025. |
| 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.
| JOHN MARSHALL BANCORP, INC. | ||
|---|---|---|
| Date: October 29, 2025 | By: | /s/ Kent D. Carstater |
| Kent D. Carstater<br><br>Senior Executive Vice President, Chief Financial Officer |
Exhibit 99.1
For Immediate Release
October 29, 2025
Continuing Strong Momentum and Growth in Margin, Core Deposits and Loan Demand Drives 28% Increase in Net Income. Asset Quality Remains Pristine.
Reston, VA – John Marshall Bancorp, Inc. (Nasdaq: JMSB) (the “Company”), parent company of John Marshall Bank (the “Bank”), reported net income of $5.4 million for the quarter ended September 30, 2025 compared to $4.2 million for the quarter ended September 30, 2024, an increase of $1.2 million or 27.6%. Diluted earnings per common share were $0.38 for the quarter ended September 30, 2025 compared to $0.30 for the quarter ended September 30, 2024, an increase of 26.7%.
Selected Highlights
| ● | Earnings Accelerating – Net income of $5.4 million for the quarter ended September 30, 2025 represents a 23.4% annualized increase over the $5.1 million net income reported for the quarter ended June 30, 2025. Diluted earnings per common share were $0.38 for the quarter ended September 30, 2025 and represented a 22.0% annualized increase over the $0.36 diluted earnings per common share reported for the quarter ended June 30, 2025. |
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| ● | Continued Margin Expansion – The tax-equivalent net interest margin (Non-GAAP) expanded for the sixth consecutive quarter to 2.73% compared to 2.70% for the second quarter of 2025 and 2.30% for the third quarter of 2024. Refer to “Explanation of Non-GAAP Financial Measures,” the “Reconciliation of Certain Non-GAAP Financial Measures” table and the “Average Balance Sheets, Interest and Rates” tables for further details about financial measures used in this release that were determined by methods other than in accordance with GAAP. |
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| ● | Significant Increase in Net Interest Income – For the three months ended September 30, 2025, the Company reported net interest income of $15.6 million, a $0.7 million or 17.9% annualized increase over the previous quarter and a $2.4 million or 18.6% increase over the prior year quarter. |
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| ● | Strong Core Deposit Growth and Loan Demand – Total deposits increased $71.9 million or 15.0% annualized during the most recent quarter. Wholesale funding sources decreased $16.5 million during the third quarter. Loans, net of unearned income, increased $21.2 million or 4.4% annualized during the most recent quarter. During the nine months ended September 30, 2025, the Company recorded $327.3 million in new loan commitments, a 22.4% improvement on the $267.5 million of new loan commitments recorded during the nine months ended September 30, 2024. The current year’s new loan commitment production represents the highest level since 2022. New commitments represent loans closed, but not necessarily fully funded as of the end of the respective reporting period. |
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| ● | Outstanding Asset Quality – As of September 30, 2025 the Company had no loans greater than 30 days past due, no non-accrual loans and no other real estate owned assets. The Company recorded no net charge-offs during the third quarter of 2025 and there were no loans classified as substandard as of September 30, 2025. |
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| ● | Robust Capitalization – Each of the Bank’s regulatory capital ratios remained well in excess of the regulatory well-capitalized thresholds as of September 30, 2025. During the quarter ended September 30, 2025, the Company repurchased 15,660 shares of its common stock at weighted average price of $18.74. |
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| ● | Growing Book Value per Share – Book value per share increased from $17.07 as of September 30, 2024 to $18.27 as of September 30, 2025, a 7.0% increase. Including the $0.30 per share cash dividend declared on April 22, 2025 and paid on July 7, 2025, the annual book value return was 8.8%. |
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1
Chris Bergstrom, President and Chief Executive Officer, commented, “The Company is on track to produce a significant increase in loan commitments in 2025. These commitments continue to convert into loan balances. Our year-to-date gross loan production is 34% ahead of last year. Rigorous underwriting and prudent growth take precedence over growth for growth’s sake. During the third quarter, we increased the volume and quality of our funding. We believe that additional Federal Open Market Committee rate reductions and a continuing normalization of the yield curve could enhance our performance trend by increasing loan demand, lowering the cost of funds and further improving net interest margin and profitability. John Marshall has the capital, liquidity, market opportunity and team to support growth and, we believe, increasing shareholder value. The strength and preparedness of our balance sheet enabled us to increase earnings 28% this quarter. We believe having an unfettered balance sheet allows us to focus on organic growth, consider mergers and acquisitions, as appropriate, and drive increased growth and returns.”
Balance Sheet, Liquidity and Credit Quality
Total assets were $2.32 billion at September 30, 2025, $2.23 billion at December 31, 2024, and $2.27 billion at September 30, 2024. Total assets have increased $89.6 million or 4.0% and $50.2 million or 2.2% since December 31, 2024 and September 30, 2024, respectively.
Total loans, net of unearned income, were $1.94 billion at September 30, 2025, $1.87 billion at December 31, 2024, and $1.84 billion at September 30, 2024. Total loans, net of unearned income have increased $65.9 million or 4.7% annualized since December 31, 2024 and $95.5 million or 5.2% since September 30, 2024. Total loans, net of unearned income, increased $21.2 million or 1.1% to $1.94 billion at September 30, 2025, compared to $1.92 billion at June 30, 2025. The increase in loans from June 30, 2025, was primarily attributable to growth in residential mortgage loans, commercial owner-occupied real estate loans, and construction & development loans. All other portfolios remained relatively unchanged during the most recent quarter. Refer to the Loan, Deposit and Borrowing Detail table for further information.
The carrying value of the Company’s fixed income securities portfolio was $205.7 million at September 30, 2025, $222.3 million at December 31, 2024 and $237.5 million at September 30, 2024. The decrease in carrying value of the Company’s fixed income securities portfolio since September 30, 2024 was primarily attributable to maturities and the amortization of the portfolio. As of September 30, 2025, 95.1% of our bond portfolio carried the implied guarantee of the United States government or one of its agencies. At September 30, 2025, 65.1% of the fixed income portfolio was invested in amortizing bonds, which provides the Company with a source of steady cash flow. At September 30, 2025, the fixed income portfolio had an estimated weighted average life of 4.1 years. The available-for-sale portfolio comprised approximately 59% of the fixed income securities portfolio and had a weighted average life of 3.1 years at September 30, 2025. The held-to-maturity portfolio comprised approximately 41% of the fixed income securities portfolio and had a weighted average life of 5.4 years at September 30, 2025.
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 $826.7 million as of September 30, 2025 compared to $755.6 million as of June 30, 2025 and represented 35.6% and 33.3% of total assets, respectively. In addition to available secured borrowing capacity, the Bank had available federal funds lines of $110.0 million at September 30, 2025.
Total deposits were $1.97 billion at September 30, 2025, $1.89 billion at December 31, 2024 and $1.94 billion at September 30, 2024. During the most recent quarter, total deposits increased $71.9 million or 3.8% when compared to June 30, 2025 primarily due to a 7.2% or $24.3 million increase in money market accounts, a 4.9% or $21.1 million increase in core time deposits, and a 1.9% or $8.3 million increase in non-interest bearing demand deposits. As further detailed in the tables included in this release, core funding sources have increased $71.9 million, while wholesale funding sources have decreased $16.5 million since June 30, 2025. As of September 30, 2025, the Company had $682.8 million of deposits that were not insured or not collateralized compared to $714.2 million at September 30, 2024.
Federal Home Loan Bank (“FHLB”) advances were $56.0 million as of September 30, 2025, December 31, 2024 and September 30, 2024. The three FHLB advances have a weighted average fixed interest rate of 3.99%. In addition to 2
outstanding FHLB advances, total borrowings as of September 30, 2025 included subordinated debt totaling $24.9 million. During the most recent quarter, the Company repaid the $16.5 million of federal funds purchased that were outstanding as of June 30, 2025.
Shareholders’ equity increased $16.6 million or 6.8% to $259.7 million at September 30, 2025 compared to $243.1 million at September 30, 2024. Book value per share was $18.27 as of September 30, 2025 compared to $17.07 as of September 30, 2024, an increase of 7.0%. The year-over-year change in book value per share was primarily due to the Company’s earnings over the previous twelve months and a decrease in accumulated other comprehensive loss. This increase was partially offset by cash dividends paid and increased share count from shareholder option exercises and restricted share award issuances. The decrease in accumulated other comprehensive loss was attributable to an increase in the market value of our available-for-sale investment portfolio.
The Bank’s capital ratios remained well above regulatory thresholds for well-capitalized banks. As of September 30, 2025, the Bank’s total risk-based capital ratio was 16.6%, compared to 16.2% at December 31, 2024 and 16.3% at September 30, 2024. As outlined below, the Bank would continue to remain well above regulatory thresholds for well-capitalized banks at September 30, 2025 in the hypothetical scenario where the entire bond portfolio was sold at fair market value and any losses realized (Non-GAAP).
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| Bank Regulatory Capital Ratios (As Reported) | ||||||||||||||
| | | | Well-Capitalized Threshold | | | September 30, 2025 | | | December 31, 2024 | | | September 30, 2024 | | |
| Total risk-based capital ratio | | | 10.0 | % | | 16.6 | % | | 16.2 | % | | 16.3 | % | |
| Tier 1 risk-based capital ratio | | | 8.0 | % | | 15.5 | % | | 15.2 | % | | 15.3 | % | |
| Common equity tier 1 ratio | | | 6.5 | % | | 15.5 | % | | 15.2 | % | | 15.3 | % | |
| Leverage ratio | | | 5.0 | % | | 12.7 | % | | 12.4 | % | | 11.9 | % | |
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|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Adjusted Bank Regulatory Capital Ratios (Hypothetical Scenario of Selling All Bonds at Fair Market Value - Non-GAAP) | |||||||||||||
| | | | Well-Capitalized Threshold | | | September 30, 2025 | | | December 31, 2024 | | | September 30, 2024 | |
| Adjusted total risk-based capital ratio | | | 10.0 | % | | 16.0 | % | | 15.3 | % | | 15.6 | % |
| Adjusted tier 1 risk-based capital ratio | | | 8.0 | % | | 14.9 | % | | 14.2 | % | | 14.5 | % |
| Adjusted common equity tier 1 ratio | | | 6.5 | % | | 14.9 | % | | 14.2 | % | | 14.5 | % |
| Adjusted leverage ratio | | | 5.0 | % | | 12.0 | % | | 11.5 | % | | 11.2 | % |
The Company recorded no charge-offs during the nine months ended September 30, 2025. As of September 30, 2025, the Company had no loans greater than 30 days past due, no non-accrual loans and no other real estate owned assets.
At September 30, 2025, the allowance for loan credit losses was $19.7 million or 1.02% of outstanding loans, net of unearned income, compared to $19.3 million or 1.01% of outstanding loans, net of unearned income, at June 30, 2025. An increase in the allowance for loan credit losses during the most recent quarter is attributable to the growth in the loan portfolio combined with the impact of updated economic forecasts used in the allowance estimate.
At September 30, 2025, the allowance for credit losses on unfunded loan commitments was $1.1 million compared to $1.2 million at June 30, 2025.
The Company did not have an allowance for credit losses on held-to-maturity securities as of September 30, 2025 or June 30, 2025. As of September 30, 2025, 93.3% of our held-to-maturity portfolio carried the implied guarantee of the United States government or one of its agencies.
The Company believes its owner occupied and non-owner occupied CRE portfolios continue to be of sound credit quality. The following table demonstrates their strong debt-service-coverage and loan-to-value ratios as of September 30, 2025. 3
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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)^^^(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 | 49.1 | % | 3.2 | x | 55 | $ | 69,065 | 49.2 | % | 2.2 | x | 47 | $ | 119,888 |
| Office | 57.7 | % | 3.6 | x | 137 | | 87,445 | 45.9 | % | 1.9 | x | 56 | | 99,726 |
| Retail | 59.4 | % | 2.8 | x | 43 | | 77,817 | 50.2 | % | 1.8 | x | 143 | | 449,123 |
| Church | 25.8 | % | 2.6 | x | 17 | | 26,774 | 71.6 | % | 1.0 | x | 2 | | 5,658 |
| Hotel/Motel | - - | | - - | | - - | | - - | 51.6 | % | 1.5 | x | 11 | | 80,504 |
| Other^(4)^ | 36.4 | % | 3.4 | x | 38 | | 66,168 | 45.0 | % | 2.2 | x | 7 | | 15,506 |
| Total | | | | | 290 | $ | 327,269 | | | | | 266 | $ | 770,405 |
| (1) | Loan-to-value is determined at origination date and is divided by principal balance as of September 30, 2025. |
|---|---|
| (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. |
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| (3) | Principal balance excludes deferred fees or costs. |
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| (4) | Other asset class is primarily comprised of schools, daycares and country clubs. |
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The following charts provide geographic detail and stated maturity summaries for the Company’s non-owner occupied office portfolio as of September 30, 2025:
| | | | |
|---|---|---|---|
| Non-owner occupied office: Geography | |||
| Geography | Commitment (in 000s) | | Percentage |
| Virginia | $69,942 | | 67.6% |
| Maryland | 27,368 | | 26.4% |
| DC | 5,833 | | 5.6% |
| Other | 438 | | 0.4% |
| Total | $103,581 | | 100.0% |
| | | | |
|---|---|---|---|
| Non-owner occupied office: Maturity | |||
| Maturity Year | Commitment (in 000s) | | Percentage |
| 2025 | $4,338 | | 4.2% |
| 2026 | 5,804 | | 5.6% |
| 2027 | 1,387 | | 1.3% |
| 2028 | 14,361 | | 13.9% |
| 2029+ | 77,691 | | 75.0% |
| Total | $103,581 | | 100.0% |
Income Statement Review
Quarterly Results
The Company reported net income of $5.4 million for the third quarter of 2025, an increase of $1.2 million or 27.6% when compared to $4.2 million for the third quarter of 2024.
For the three months ended September 30, 2025, net interest income increased $2.4 million or 18.6% to $15.6 million compared to $13.2 million for the three months ended September 30, 2024. During the same period, interest income increased $0.5 million or 1.8%, driven by higher interest income on loans, while interest expense declined by $1.9 million or 12.6%, predominantly due to lower interest expense on time deposits, money market accounts and borrowings.
The annualized tax-equivalent net interest margin (Non-GAAP) for the third quarter of 2025 was 2.73% as compared to 2.30% for the same period in 2024. The increase in tax-equivalent net interest margin was primarily due to lower rates on interest-bearing deposits in combination with the increase in average balances and yields of the loan portfolio. 4
The cost of interest-bearing liabilities was 3.37% for the third quarter of 2025 compared to 3.86% for the same quarter in the prior year driven by 49 basis points decline in rates on interest-bearing deposits. Rates declined across all deposit categories, most notably in NOW accounts, money market, and time deposits, which declined by 59 basis points, 52 basis points, and 41 basis points, respectively. Cost of borrowings declined from 4.88% for the prior year quarter to 4.52% in the most recent quarter, mainly as a result of the payoff of higher cost Bank Term Funding Program borrowings in September 2024, which were partially refinanced with lower cost FHLB advances. The yield on interest-earning assets was 5.06% for the third quarter of 2025 compared to 4.97% for the same period in 2024 primarily due to 11 basis points increases in both loan and investment securities yields. Average loans increased $93.8 million between the three months ended September 30, 2025 and the three months ended September 30, 2024, which was primarily attributable to origination volume in the investor real estate, construction and development, and residential mortgage loan portfolios subsequent to September 30, 2024.
The Company recorded a $356 thousand provision for credit losses for the third quarter of 2025 compared to $400 thousand for the third quarter of 2024. The provision for credit losses during the most recent quarter was directly attributable to the growth in the Company’s loan portfolio quarter-over-quarter coupled with the impact of updated economic forecasts used in the quantitative portion of the model. All other credit-related assumptions used in the allowance estimate, including qualitative adjustments, remained relatively consistent compared to the previous quarter.
Non-interest income increased $36 thousand during the third quarter of 2025 compared to the third quarter of 2024. This increase was primarily attributable to a $101 thousand increase in customer swap fee income, partially offset by a $54 thousand reduction in gains recorded on sales of the guaranteed portions of SBA 7(a) loans due to lower sale activity.
Non-interest expense increased $1.0 million or 12.5% during the third quarter of 2025 compared to the third quarter of 2024 primarily as a result of increases in salaries and employee benefits and other expenses. The $796 thousand or 16.3% increase in salaries and employee benefits was primarily related to increases in headcount within the Bank and incentive compensation tied to performance. The headcount increases are investments in the Bank’s future growth. As in the past, management expects these staffing additions will lead to subsequent increases in revenues. Incentive compensation expense accruals can fluctuate significantly from quarter to quarter, based upon the Company’s financial performance and condition measured against, among other evaluation criteria, our strategic plan and budget. Other expenses grew by $221 thousand or 9.3% due to a combination of higher state franchise taxes, marketing expense and general operating expenses. These increases were partially offset by lower occupancy expense, resulting from the negotiation of more favorable rents on three branch locations.
For the three months ended September 30, 2025, annualized non-interest expense to average assets was 1.57% compared to 1.39% for the three months ended September 30, 2024. The increase was primarily due to higher non-interest expense, as described above, when comparing the two periods. For the three months ended September 30, 2025, the efficiency ratio declined to 55.6% compared to 58.3% for the three months ended September 30, 2024. The improvement in the efficiency ratio was due to an 18.0% growth in total revenue, which outpaced a 12.5% increase in non-interest expense over the period.
Return on average assets for the quarter ended September 30, 2025 was 0.94% and return on average equity was 8.31% compared to 0.73% and 7.00%, respectively, for the third quarter of 2024.
Year-to-Date Results
The Company reported net income of $15.3 million for the nine months ended September 30, 2025, an increase of $3.0 million or 24.1% when compared to the same period in 2024.
Net interest income for the nine months ended September 30, 2025 increased $7.6 million or 20.7% compared to the same period of 2024. The annualized net interest margin and tax-equivalent net interest margin (Non-GAAP) for the nine months ended September 30, 2025 were 2.66% and 2.67%, respectively, as compared to 2.20% for the same periods in the prior year. These increases were driven primarily by the decrease in rates of interest-bearing deposits coupled with increases in average balances and yields of the loan portfolio.
The cost of interest-bearing liabilities was 3.41% for the nine months ended September 30, 2025 compared to 3.83% for the nine months ended September 30, 2024. The decrease in the cost of interest-bearing liabilities was primarily 5
due to a 40 basis points 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 third quarter of 2024. The yield on interest-earning assets was 5.03% for the nine months ended September 30, 2025 compared to 4.88% for the same period in 2024. The increase in yield on interest-earning assets was primarily due to an 18 basis point and a seven basis point increase in yields on the Company’s loans and securities, respectively, as a result of higher prevailing interest rates as assets repriced subsequent to the third quarter of 2024. Average loans increased $61.4 million between the nine months ended September 30, 2025 and 2024, which was primarily attributable to origination volume in the investor real estate, construction and development, and residential mortgage loan portfolios subsequent to September 30, 2024.
The Company recorded a $1.1 million provision for credit losses for the nine months ended September 30, 2025 compared to a $0.7 million recovery of provision for credit losses for the nine months ended September 30, 2024. The provision for credit losses during the nine months ended September 30, 2025 was primarily a result of changes in the composition and volume of the loan portfolio, updated economic forecasts used in the quantitative portion of the model and an assessment of management’s considerations of qualitative factors.
Non-interest income decreased $325 thousand or 16.3% during the nine months ended September 30, 2025 compared to the same period of 2024. The decrease was primarily driven by a $306 thousand decrease on the recorded gain on sale of the government guaranteed portion of the SBA 7(a) loans due to decreased sale activity along with a $53 thousand decrease in insurance commissions. These decreases were partially offset by a $66 thousand increase to the mark-to-market adjustments on the Company’s nonqualified deferred compensation plan and a $37 thousand increase in swap fee income.
Non-interest expense increased $1.7 million or 7.3% during the nine months ended September 30, 2025 compared to the same period in 2024 predominantly due to a $1.4 million or 9.5% increase in salaries and employee benefits, as discussed above in the quarterly results. Other expenses increased $411 thousand or 5.8% for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. Increases were primarily in data processing, state franchise tax and other general operating expenses. Furniture and equipment expenses increased $57 thousand or 6.3% for the nine months ended September 30, 2025 compared to the same period in 2024. The increase was due to investment and maintenance in technology. These increases were partially offset by a decrease in the Company’s occupancy expense, which declined by $125 thousand or 9.3% for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024, as a result of the negotiation of more favorable rents on three branch locations.
For the nine months ended September 30, 2025, annualized non-interest expense to average assets was 1.52% compared to 1.41% for the nine months ended September 30, 2024. The increase was primarily due to higher non-interest expenses combined with lower average assets when comparing the two periods.
For the nine months ended September 30, 2025, the efficiency ratio was 55.3% compared to 61.2% for the nine months ended September 30, 2024. The improvement in the efficiency ratio was due to an 18.8% growth in total revenue, which outpaced a 7.3% increase in non-interest expense over the period.
Return on average assets for the nine months ended September 30, 2025 was 0.91% and return on average equity was 8.05% compared to 0.73% and 6.97%, respectively, for the nine months ended September 30, 2024.
6
Explanation of Non-GAAP Financial Measures
This release contains financial information determined by methods other than in accordance with GAAP. Management believes that the supplemental Non-GAAP information provides a better comparison of period-to-period operating performance and unrealized losses in the Company’s bond portfolio on the Bank’s regulatory capital ratios. Additionally, the Company believes this information is utilized by regulators and market analysts to evaluate a company’s financial condition and therefore, such information is useful to investors. Non-GAAP measures used in this release consist of the following:
| ● | Tax-equivalent net interest margin reflects adjustments for differences in tax treatment of interest income sources; and |
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| ● | Adjusted Bank regulatory capital ratios in the hypothetical scenario where the entire bond portfolio was sold at fair market value and any losses realized. |
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These disclosures should not be viewed as a substitute for, or more important than, financial results in accordance with GAAP, nor are they necessarily comparable to Non-GAAP performance measures which may be presented by other companies. Please refer to the “Reconciliation of Certain Non-GAAP Financial Measures” table and “Average Balance Sheets, Interest and Rates” tables for the respective periods for a reconciliation of these Non-GAAP measures to the most directly comparable GAAP measure. 7
About John Marshall Bancorp, Inc.
John Marshall Bancorp, Inc. is the bank holding company for John Marshall Bank. The Bank is headquartered in Reston, Virginia with eight full-service branches located in Alexandria, Arlington, Loudoun, Prince William, Reston, and Tysons, Virginia, as well as Rockville, Maryland, and Washington, D.C. The Bank is dedicated to providing exceptional value, personalized service and convenience to local businesses and professionals in the Washington, D.C. Metropolitan area. The Bank offers a comprehensive line of sophisticated banking products and services that rival those of the largest banks along with experienced staff to help achieve customers’ financial goals. Dedicated relationship managers serve as direct points-of-contact, providing subject matter expertise in a variety of niche industries including charter and private schools, government contractors, health services, nonprofits and associations, professional services, property management companies and title companies. Learn more at www.johnmarshallbank.com.
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 the ongoing shutdown of the U.S. Government 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 purpose only, are not forecasts and may not reflect actual results.
# # #
8
| | | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| John Marshall Bancorp, Inc. | |||||||||||||
| | | | | | | | | | | | | | |
| Financial Highlights (Unaudited) | |||||||||||||
| (Dollar amounts in thousands, except per share data) | |||||||||||||
| | | | | | | | | | | | | | |
| | | At or For the Three Months Ended | | At or For the Nine Months Ended | | ||||||||
| | | | September 30 | | | September 30 | | ||||||
| | 2025 | **** | 2024 | **** | 2025 | **** | 2024 | | |||||
| Selected Balance Sheet Data | | | | | | | | | | | | | |
| Cash and cash equivalents | | $ | 163,645 | | $ | 177,227 | | $ | 163,645 | | $ | 177,227 | |
| Total investment securities | | | 216,119 | | | 247,840 | | | 216,119 | | | 247,840 | |
| Loans, net of unearned income | | | 1,938,108 | | | 1,842,598 | | | 1,938,108 | | | 1,842,598 | |
| Allowance for loan credit losses | | | 19,714 | | | 18,481 | | | 19,714 | | | 18,481 | |
| Total assets | | | 2,324,544 | | | 2,274,363 | | | 2,324,544 | | | 2,274,363 | |
| Non-interest bearing demand deposits | | | 446,925 | | | 472,422 | | | 446,925 | | | 472,422 | |
| Interest bearing deposits | | | 1,521,903 | | | 1,463,728 | | | 1,521,903 | | | 1,463,728 | |
| Total deposits | | | 1,968,828 | | | 1,936,150 | | | 1,968,828 | | | 1,936,150 | |
| Federal Home Loan Bank advances | | | 56,000 | | | 56,000 | | | 56,000 | | | 56,000 | |
| Shareholders' equity | | | 259,692 | | | 243,118 | | | 259,692 | | | 243,118 | |
| | | | | | | | | | | | | | |
| Summary Results of Operations | | | | | | | | | | | | | |
| Interest income | | $ | 28,945 | | $ | 28,428 | | $ | 84,092 | | $ | 82,138 | |
| Interest expense | | | 13,345 | | | 15,272 | | | 39,470 | | | 45,158 | |
| Net interest income | | | 15,600 | | | 13,156 | | | 44,622 | | | 36,980 | |
| Provision for (recovery of) credit losses | | | 356 | | | 400 | | | 1,064 | | | (667) | |
| Net interest income after provision for (recovery of) credit losses | | | 15,244 | | | 12,756 | | | 43,558 | | | 37,647 | |
| Non-interest income | | | 653 | | | 617 | | | 1,665 | | | 1,990 | |
| Non-interest expense | | | 9,034 | | | 8,031 | | | 25,594 | | | 23,863 | |
| Income before income taxes | | | 6,863 | | | 5,342 | | | 19,629 | | | 15,774 | |
| Net income | | | 5,404 | | | 4,235 | | | 15,317 | | | 12,344 | |
| | | | | | | | | | | | | | |
| Per Share Data and Shares Outstanding | | | | | | | | | | | | | |
| Earnings per common share - basic | | $ | 0.38 | | $ | 0.30 | | $ | 1.07 | | $ | 0.87 | |
| Earnings per common share - diluted | | $ | 0.38 | | $ | 0.30 | | $ | 1.07 | | $ | 0.87 | |
| Book value per share | | $ | 18.27 | | $ | 17.07 | | $ | 18.27 | | $ | 17.07 | |
| Weighted average common shares (basic) | | | 14,172,953 | | | 14,187,691 | | | 14,205,357 | | | 14,164,060 | |
| Weighted average common shares (diluted) | | | 14,172,953 | | | 14,214,586 | | | 14,211,882 | | | 14,198,332 | |
| Common shares outstanding at end of period | | | 14,216,781 | | | 14,238,677 | | | 14,216,781 | | | 14,238,677 | |
| | | | | | | | | | | | | | |
| Performance Ratios | | | | | | | | | | | | | |
| Return on average assets (annualized) | | | 0.94 | % | | 0.73 | % | | 0.91 | % | | 0.73 | % |
| Return on average equity (annualized) | | | 8.31 | % | | 7.00 | % | | 8.05 | % | | 6.97 | % |
| Net interest margin | | | 2.72 | % | | 2.30 | % | | 2.66 | % | | 2.20 | % |
| Tax-equivalent net interest margin (Non-GAAP)^(1)^ | | | 2.73 | % | | 2.30 | % | | 2.67 | % | | 2.20 | % |
| Non-interest income as a percentage of average assets (annualized) | | | 0.11 | % | | 0.11 | % | | 0.10 | % | | 0.12 | % |
| Non-interest expense to average assets (annualized) | | | 1.57 | % | | 1.39 | % | | 1.52 | % | | 1.41 | % |
| Efficiency ratio | | | 55.6 | % | | 58.3 | % | | 55.3 | % | | 61.2 | % |
| | | | | | | | | | | | | | |
| Asset Quality | | | | | | | | | | | | | |
| Non-performing assets to total assets | | | - - | % | | - - | % | | - - | % | | - - | % |
| Non-performing loans to total loans | | | - - | % | | - - | % | | - - | % | | - - | % |
| Allowance for loan credit losses to non-performing loans | | | N/M | | | N/M | | | N/M | | | N/M | |
| Allowance for loan credit losses to total loans | | | 1.02 | % | | 1.00 | % | | 1.02 | % | | 1.00 | % |
| Net charge-offs to average loans (annualized) | | | - - | % | | - - | % | | - - | % | | - - | % |
| | | | | | | | | | | | | | |
| Loans 30-89 days past due and accruing interest | | $ | - - | | $ | - - | | $ | - - | | $ | - - | |
| 90 days past due and still accruing interest | | | - - | | | - - | | | - - | | | - - | |
| Non-accrual loans | | | - - | | | - - | | | - - | | | - - | |
| Other real estate owned | | | - - | | | - - | | | - - | | | - - | |
| Non-performing assets^(2)^ | | | - - | | | - - | | | - - | | | - - | |
| | | | | | | | | | | | | | |
| Capital Ratios (Bank Level) | | | | | | | | | | | | | |
| Equity / assets | | | 12.1 | % | | 11.6 | % | | 12.1 | % | | 11.6 | % |
| Total risk-based capital ratio | | | 16.6 | % | | 16.3 | % | | 16.6 | % | | 16.3 | % |
| Tier 1 risk-based capital ratio | | | 15.5 | % | | 15.3 | % | | 15.5 | % | | 15.3 | % |
| Common equity tier 1 ratio | | | 15.5 | % | | 15.3 | % | | 15.5 | % | | 15.3 | % |
| Leverage ratio | | | 12.7 | % | | 11.9 | % | | 12.7 | % | | 11.9 | % |
| | | | | | | | | | | | | | |
| Other Information | | | | | | | | | | | | | |
| Number of full time equivalent employees | | | 134 | | | 134 | | | 134 | | | 134 | |
| # Full service branch offices | | | 8 | | | 8 | | | 8 | | | 8 | |
| (1) | Non-GAAP financial measure. Refer to “Average Balance, Interest and Rates table” for further details. |
|---|---|
| (2) | Non-performing assets consist of non-accrual loans, loans 90 days or more past due and still accruing interest and other real estate owned. |
| --- | --- |
9
| | | | | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| John Marshall Bancorp, Inc. | |||||||||||||||
| | | | | | | | | | | | | | | | |
| Consolidated Balance Sheets | |||||||||||||||
| (Dollar amounts in thousands, except per share data) | |||||||||||||||
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | % Change | ||||
| | | September 30, | | December 31, | | September 30, | | Last Nine | | Year Over | |||||
| | 2025 | **** | 2024 | | 2024 | Months | | Year | |||||||
| Assets | | (Unaudited) | | * | | (Unaudited) | | | | | |||||
| Cash and due from banks | | $ | 8,867 | | $ | 5,945 | | $ | 8,164 | | 49.2 | % | | 8.6 | % |
| Interest-bearing deposits in banks | | | 154,778 | | | 116,524 | | | 169,063 | | 32.8 | % | | (8.4) | % |
| Securities available-for-sale, at fair value | | | 116,378 | | | 130,257 | | | 144,649 | | (10.7) | % | | (19.5) | % |
| Securities held-to-maturity at amortized cost, fair value of $77,647, $76,270, and $79,731 at 9/30/2025, 12/31/2024, and 9/30/2024, respectively. | | | 89,291 | | | 92,009 | | | 92,863 | | (3.0) | % | | (3.8) | % |
| Restricted securities, at cost | | | 7,641 | | | 7,634 | | | 7,630 | | - - | % | | 0.1 | % |
| Equity securities, at fair value | | | 2,809 | | | 2,832 | | | 2,698 | | (0.8) | % | | 4.1 | % |
| Loans, net of unearned income | | | 1,938,108 | | | 1,872,173 | | | 1,842,598 | | 3.5 | % | | 5.2 | % |
| Allowance for loan credit losses | | | (19,714) | | | (18,715) | | | (18,481) | | 5.3 | % | | 6.7 | % |
| Net loans | | | 1,918,394 | | | 1,853,458 | | | 1,824,117 | | 3.5 | % | | 5.2 | % |
| Bank premises and equipment, net | | | 1,424 | | | 1,318 | | | 1,179 | | 8.0 | % | | 20.8 | % |
| Accrued interest receivable | | | 5,819 | | | 5,996 | | | 5,657 | | (3.0) | % | | 2.9 | % |
| Right of use assets | | | 4,583 | | | 5,013 | | | 3,824 | | (8.6) | % | | 19.8 | % |
| Other assets | | | 14,560 | | | 13,961 | | | 14,519 | | 4.3 | % | | 0.3 | % |
| Total assets | | $ | 2,324,544 | | $ | 2,234,947 | | $ | 2,274,363 | | 4.0 | % | | 2.2 | % |
| | | | | | | | | | | | | | | | |
| Liabilities and Shareholders' Equity | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Liabilities | | | | | | | | | | | | | | | |
| Deposits: | | | | | | | | | | | | | | | |
| Non-interest bearing demand deposits | | $ | 446,925 | | $ | 433,288 | | $ | 472,422 | | 3.1 | % | | (5.4) | % |
| Interest-bearing demand deposits | | | 727,295 | | | 705,097 | | | 685,385 | | 3.1 | % | | 6.1 | % |
| Savings deposits | | | 39,427 | | | 44,367 | | | 43,779 | | (11.1) | % | | (9.9) | % |
| Time deposits | | | 755,181 | | | 709,663 | | | 734,564 | | 6.4 | % | | 2.8 | % |
| Total deposits | | | 1,968,828 | | | 1,892,415 | | | 1,936,150 | | 4.0 | % | | 1.7 | % |
| Federal Home Loan Bank advances | | | 56,000 | | | 56,000 | | | 56,000 | | - - | % | | - - | % |
| Subordinated debt, net | | | 24,854 | | | 24,791 | | | 24,770 | | 0.3 | % | | 0.3 | % |
| Accrued interest payable | | | 1,869 | | | 2,394 | | | 2,304 | | (21.9) | % | | (18.9) | % |
| Lease liabilities | | | 4,941 | | | 5,369 | | | 4,090 | | (8.0) | % | | 20.8 | % |
| Other liabilities | | | 8,360 | | | 7,364 | | | 7,931 | | 13.5 | % | | 5.4 | % |
| Total liabilities | | | 2,064,852 | | | 1,988,333 | | | 2,031,245 | | 3.8 | % | | 1.7 | % |
| | | | | | | | | | | | | | | | |
| 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, 14,216,781 at 9/30/2025 including 51,085 unvested shares, issued and outstanding, 14,269,469 at 12/31/2024 including 54,388 unvested shares, and issued and outstanding, 14,238,677 at 9/30/2024 including 45,753 unvested shares | | | 142 | | | 142 | | | 142 | | - - | % | | - - | % |
| Additional paid-in capital | | | 96,311 | | | 97,173 | | | 97,017 | | (0.9) | % | | (0.7) | % |
| Retained earnings | | | 170,998 | | | 159,951 | | | 155,174 | | 6.9 | % | | 10.2 | % |
| Accumulated other comprehensive loss | | | (7,759) | | | (10,652) | | | (9,215) | | (27.2) | % | | (15.8) | % |
| Total shareholders' equity | | | 259,692 | | | 246,614 | | | 243,118 | | 5.3 | % | | 6.8 | % |
| Total liabilities and shareholders' equity | | $ | 2,324,544 | | $ | 2,234,947 | | $ | 2,274,363 | | 4.0 | % | | 2.2 | % |
* Derived from audited consolidated financial statements.
10
| | | | | | | | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| John Marshall Bancorp, Inc. | ||||||||||||||||||
| | | | | | | | | | | |||||||||
| Consolidated Statements of Income | ||||||||||||||||||
| (Dollar amounts in thousands, except per share data) | ||||||||||||||||||
| | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | | | Nine Months Ended | | | | ||||||||
| | | September 30, | | | | | September 30, | | | | ||||||||
| | 2025 | **** | 2024 | **** | % Change | | 2025 | **** | 2024 | **** | % Change | |||||||
| | | (Unaudited) | | (Unaudited) | | | **** | | (Unaudited) | | (Unaudited) | | | **** | ||||
| Interest and Dividend Income | | | | | | | | | | | | | | | | | | |
| Interest and fees on loans | | $ | 26,191 | | $ | 24,306 | | 7.8 | % | | $ | 76,218 | | $ | 71,289 | | 6.9 | % |
| Interest on investment securities, taxable | | | 1,043 | | | 1,138 | | (8.3) | % | | | 3,145 | | | 3,602 | | (12.7) | % |
| Interest on investment securities, tax-exempt | | | 9 | | | 9 | | -- | % | | | 27 | | | 27 | | -- | % |
| Dividends | | | 119 | | | 97 | | 22.7 | % | | | 363 | | | 262 | | 38.5 | % |
| Interest on deposits in other banks | | | 1,583 | | | 2,878 | | (45.0) | % | | | 4,339 | | | 6,958 | | (37.6) | % |
| Total interest and dividend income | | | 28,945 | | | 28,428 | | 1.8 | % | | | 84,092 | | | 82,138 | | 2.4 | % |
| | | | | | | | | | | | | | | | | | | |
| Interest Expense | | | | | | | | | | | | | | | | | | |
| Deposits | | | 12,424 | | | 14,102 | | (11.9) | % | | | 36,725 | | | 41,484 | | (11.5) | % |
| Federal funds purchased | | | - - | | | - - | | N/M | | | | 2 | | | 2 | | -- | % |
| Federal Home Loan Bank advances | | | 572 | | | 174 | | 228.7 | | | | 1,696 | | | 174 | | 874.7 | % |
| Federal Reserve Bank borrowings | | | - - | | | 647 | | (100.0) | % | | | - - | | | 2,451 | | (100.0) | % |
| Subordinated debt | | | 349 | | | 349 | | -- | % | | | 1,047 | | | 1,047 | | -- | % |
| Total interest expense | | | 13,345 | | | 15,272 | | (12.6) | % | | | 39,470 | | | 45,158 | | (12.6) | % |
| | | | | | | | | | | | | | | | | | | |
| Net interest income | | | 15,600 | | | 13,156 | | 18.6 | % | | | 44,622 | | | 36,980 | | 20.7 | % |
| | | | | | | | | | | | | | | | | | | |
| Provision for (recovery of) Credit Losses | | | 356 | | | 400 | | (11.0) | % | | | 1,064 | | | (667) | | (259.5) | % |
| | | | | | | | | | | | | | | | | | | |
| Net interest income after provision for (recovery of) credit losses | | | 15,244 | | | 12,756 | | 19.5 | % | | | 43,558 | | | 37,647 | | 15.7 | % |
| | | | | | | | | | | | | | | | | | | |
| Non-interest Income | | | | | | | | | | | | | | | | | | |
| Service charges on deposit accounts | | | 87 | | | 84 | | 3.6 | % | | | 255 | | | 260 | | (1.9) | % |
| Other service charges and fees | | | 135 | | | 160 | | (15.6) | % | | | 429 | | | 474 | | (9.5) | % |
| Insurance commissions | | | 58 | | | 64 | | (9.4) | % | | | 304 | | | 357 | | (14.8) | % |
| Gain on sale of government guaranteed loans | | | 106 | | | 160 | | (33.8) | % | | | 203 | | | 509 | | (60.1) | % |
| Non-qualified deferred compensation plan asset gains, net | | | 158 | | | 139 | | 13.7 | % | | | 364 | | | 298 | | 22.1 | % |
| Other income | | | 109 | | | 10 | | 990.0 | % | | | 110 | | | 92 | | 19.6 | % |
| Total non-interest income | | | 653 | | | 617 | | 5.8 | % | | | 1,665 | | | 1,990 | | (16.3) | % |
| | | | | | | | | | | | | | | | | | | |
| Non-interest Expenses | | | | | | | | | | | | | | | | | | |
| Salaries and employee benefits | | | 5,693 | | | 4,897 | | 16.3 | % | | | 15,971 | | | 14,583 | | 9.5 | % |
| Occupancy expense of premises | | | 405 | | | 444 | | (8.8) | % | | | 1,218 | | | 1,343 | | (9.3) | % |
| Furniture and equipment expenses | | | 329 | | | 304 | | 8.2 | % | | | 959 | | | 902 | | 6.3 | % |
| Other expenses | | | 2,607 | | | 2,386 | | 9.3 | % | | | 7,446 | | | 7,035 | | 5.8 | % |
| Total non-interest expenses | | | 9,034 | | | 8,031 | | 12.5 | % | | | 25,594 | | | 23,863 | | 7.3 | % |
| | | | | | | | | | | | | | | | | | | |
| Income before income taxes | | | 6,863 | | | 5,342 | | 28.5 | % | | | 19,629 | | | 15,774 | | 24.4 | % |
| | | | | | | | | | | | | | | | | | | |
| Income Tax Expense | | | 1,459 | | | 1,107 | | 31.8 | % | | | 4,312 | | | 3,430 | | 25.7 | % |
| | | | | | | | | | | | | | | | | | | |
| Net income | | $ | 5,404 | | $ | 4,235 | | 27.6 | % | | $ | 15,317 | | $ | 12,344 | | 24.1 | % |
| | | | | | | | | | | | | | | | | | | |
| Earnings Per Share | | | | | | | | | | | | | | | | | | |
| Basic | | $ | 0.38 | | $ | 0.30 | | 26.7 | % | | $ | 1.07 | | $ | 0.87 | | 23.0 | % |
| Diluted | | $ | 0.38 | | $ | 0.30 | | 26.7 | % | | $ | 1.07 | | $ | 0.87 | | 23.0 | % |
11
| | | | | | | | | | | | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| John Marshall Bancorp, Inc. | ||||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | |
| Historical Trends - Quarterly Financial Data (Unaudited) | ||||||||||||||||||||||
| (Dollar amounts in thousands, except per share data) | ||||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | |
| | | 2025 | | | 2024 | | ||||||||||||||||
| | **** | September 30 | | June 30 | | March 31 | | December 31 | | September 30 | | June 30 | | March 31 | | |||||||
| Profitability for the Quarter: | | | | | | | | | | | | | | | | | | | | | | |
| Interest income | | $ | 28,945 | | $ | 27,843 | | $ | 27,305 | | $ | 27,995 | | $ | 28,428 | | $ | 26,791 | | $ | 26,919 | |
| Interest expense | | | 13,345 | | | 12,917 | | | 13,208 | | | 13,929 | | | 15,272 | | | 14,710 | | | 15,175 | |
| Net interest income | | | 15,600 | | | 14,926 | | | 14,097 | | | 14,066 | | | 13,156 | | | 12,081 | | | 11,744 | |
| Provision for (recovery of) credit losses | | | 356 | | | 537 | | | 170 | | | 298 | | | 400 | | | (292) | | | (776) | |
| Non-interest income | | | 653 | | | 507 | | | 505 | | | 281 | | | 617 | | | 555 | | | 818 | |
| Non-interest expenses | | | 9,034 | | | 8,313 | | | 8,248 | | | 7,945 | | | 8,031 | | | 7,909 | | | 7,924 | |
| Income before income taxes | | | 6,863 | | | 6,583 | | | 6,184 | | | 6,104 | | | 5,342 | | | 5,019 | | | 5,414 | |
| Income tax expense | | | 1,459 | | | 1,480 | | | 1,374 | | | 1,328 | | | 1,107 | | | 1,114 | | | 1,210 | |
| Net income | | $ | 5,404 | | $ | 5,103 | | $ | 4,810 | | $ | 4,776 | | $ | 4,235 | | $ | 3,905 | | $ | 4,204 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Financial Performance: | | | | | | | | | | | | | | | | | | | | | | |
| Return on average assets (annualized) | | | 0.94 | % | | 0.91 | % | | 0.87 | % | | 0.85 | % | | 0.73 | % | | 0.70 | % | | 0.75 | % |
| Return on average equity (annualized) | | | 8.31 | % | | 8.06 | % | | 7.76 | % | | 7.71 | % | | 7.00 | % | | 6.68 | % | | 7.23 | % |
| Net interest margin | | | 2.72 | % | | 2.69 | % | | 2.58 | % | | 2.52 | % | | 2.30 | % | | 2.19 | % | | 2.11 | % |
| Tax-equivalent net interest margin (Non-GAAP) | | | 2.73 | % | | 2.70 | % | | 2.58 | % | | 2.52 | % | | 2.30 | % | | 2.19 | % | | 2.11 | % |
| Non-interest income as a percentage of average assets (annualized) | | | 0.11 | % | | 0.09 | % | | 0.09 | % | | 0.05 | % | | 0.11 | % | | 0.10 | % | | 0.15 | % |
| Non-interest expense to average assets (annualized) | | | 1.57 | % | | 1.49 | % | | 1.50 | % | | 1.41 | % | | 1.39 | % | | 1.42 | % | | 1.41 | % |
| Efficiency ratio | | | 55.6 | % | | 53.9 | % | | 56.5 | % | | 55.4 | % | | 58.3 | % | | 62.6 | % | | 63.1 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| Per Share Data: | | | | | | | | | | | | | | | | | | | | | | |
| Earnings per common share - basic | | $ | 0.38 | | $ | 0.36 | | $ | 0.34 | | $ | 0.34 | | $ | 0.30 | | $ | 0.27 | | $ | 0.30 | |
| Earnings per common share - diluted | | $ | 0.38 | | $ | 0.36 | | $ | 0.34 | | $ | 0.33 | | $ | 0.30 | | $ | 0.27 | | $ | 0.30 | |
| Book value per share | | $ | 18.27 | | $ | 17.83 | | $ | 17.72 | | $ | 17.28 | | $ | 17.07 | | $ | 16.54 | | $ | 16.51 | |
| Dividends declared per share | | $ | - - | | $ | 0.30 | | $ | - - | | $ | - - | | $ | - - | | $ | 0.25 | | $ | - - | |
| Weighted average common shares (basic) | | | 14,172,953 | | | 14,221,597 | | | 14,223,046 | | | 14,196,309 | | | 14,187,691 | | | 14,173,245 | | | 14,130,986 | |
| Weighted average common shares (diluted) | | | 14,172,953 | | | 14,223,418 | | | 14,241,114 | | | 14,224,287 | | | 14,214,586 | | | 14,200,171 | | | 14,181,254 | |
| Common shares outstanding at end of period | | | 14,216,781 | | | 14,231,389 | | | 14,275,885 | | | 14,269,469 | | | 14,238,677 | | | 14,229,853 | | | 14,209,606 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Non-interest Income: | | | | | | | | | | | | | | | | | | | | | | |
| Service charges on deposit accounts | | $ | 87 | | $ | 86 | | $ | 82 | | $ | 89 | | $ | 84 | | $ | 88 | | $ | 88 | |
| Other service charges and fees | | | 135 | | | 141 | | | 153 | | | 181 | | | 160 | | | 165 | | | 149 | |
| Insurance commissions | | | 58 | | | 33 | | | 213 | | | 59 | | | 64 | | | 40 | | | 252 | |
| Gain on sale of government guaranteed loans | | | 106 | | | 61 | | | 36 | | | 11 | | | 160 | | | 216 | | | 133 | |
| Non-qualified deferred compensation plan asset gains (losses), net | | | 158 | | | 182 | | | 24 | | | (62) | | | 139 | | | 35 | | | 124 | |
| Other income (loss) | | | 109 | | | 4 | | | (3) | | | 3 | | | 10 | | | 11 | | | 72 | |
| Total non-interest income | | $ | 653 | | $ | 507 | | $ | 505 | | $ | 281 | | $ | 617 | | $ | 555 | | $ | 818 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Non-interest Expenses: | | | | | | | | | | | | | | | | | | | | | | |
| Salaries and employee benefits | | $ | 5,693 | | $ | 5,178 | | $ | 5,099 | | $ | 4,658 | | $ | 4,897 | | $ | 4,875 | | $ | 4,810 | |
| Occupancy expense of premises | | | 405 | | | 407 | | | 407 | | | 417 | | | 444 | | | 448 | | | 451 | |
| Furniture and equipment expenses | | | 329 | | | 315 | | | 316 | | | 319 | | | 304 | | | 301 | | | 297 | |
| Other expenses | | | 2,607 | | | 2,413 | | | 2,426 | | | 2,551 | | | 2,386 | | | 2,285 | | | 2,366 | |
| Total non-interest expenses | | $ | 9,034 | | $ | 8,313 | | $ | 8,248 | | $ | 7,945 | | $ | 8,031 | | $ | 7,909 | | $ | 7,924 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Balance Sheets at Quarter End: | | | | | | | | | | | | | | | | | | | | | | |
| Total loans, net of unearned income | | $ | 1,938,108 | | $ | 1,916,915 | | $ | 1,870,472 | | $ | 1,872,173 | | $ | 1,842,598 | | $ | 1,827,187 | | $ | 1,825,931 | |
| Allowance for loan credit losses | | | (19,714) | | | (19,298) | | | (18,826) | | | (18,715) | | | (18,481) | | | (18,433) | | | (18,671) | |
| Investment securities | | | 216,119 | | | 226,495 | | | 226,163 | | | 232,732 | | | 247,840 | | | 249,582 | | | 261,341 | |
| Interest-earning assets | | | 2,309,005 | | | 2,250,921 | | | 2,255,154 | | | 2,221,429 | | | 2,259,501 | | | 2,249,350 | | | 2,234,592 | |
| Total assets | | | 2,324,544 | | | 2,267,953 | | | 2,272,432 | | | 2,234,947 | | | 2,274,363 | | | 2,269,757 | | | 2,251,837 | |
| Total deposits | | | 1,968,828 | | | 1,896,893 | | | 1,922,175 | | | 1,892,415 | | | 1,936,150 | | | 1,912,840 | | | 1,900,990 | |
| Total interest-bearing liabilities | | | 1,602,757 | | | 1,555,598 | | | 1,565,165 | | | 1,539,918 | | | 1,544,498 | | | 1,577,420 | | | 1,598,050 | |
| Total shareholders' equity | | | 259,692 | | | 253,732 | | | 252,958 | | | 246,614 | | | 243,118 | | | 235,346 | | | 234,550 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Quarterly Average Balance Sheets: | | | | | | | | | | | | | | | | | | | | | | |
| Total loans, net of unearned income | | $ | 1,912,275 | | $ | 1,868,290 | | $ | 1,868,303 | | $ | 1,838,526 | | $ | 1,818,472 | | $ | 1,810,722 | | $ | 1,835,966 | |
| Investment securities | | | 221,802 | | | 229,171 | | | 231,479 | | | 243,329 | | | 249,354 | | | 255,940 | | | 270,760 | |
| Interest-earning assets | | | 2,275,386 | | | 2,224,806 | | | 2,220,730 | | | 2,223,725 | | | 2,277,427 | | | 2,222,658 | | | 2,247,620 | |
| Total assets | | | 2,289,352 | | | 2,238,955 | | | 2,233,761 | | | 2,238,062 | | | 2,292,385 | | | 2,239,261 | | | 2,264,544 | |
| Total deposits | | | 1,934,456 | | | 1,883,425 | | | 1,884,969 | | | 1,893,976 | | | 1,939,601 | | | 1,883,010 | | | 1,914,173 | |
| Total interest-bearing liabilities | | | 1,571,390 | | | 1,530,811 | | | 1,540,974 | | | 1,532,452 | | | 1,573,631 | | | 1,551,953 | | | 1,600,197 | |
| Total shareholders' equity | | | 257,993 | | | 254,071 | | | 251,559 | | | 246,525 | | | 240,609 | | | 235,136 | | | 233,952 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Financial Measures: | | | | | | | | | | | | | | | | | | | | | | |
| Average equity to average assets | | | 11.3 | % | | 11.3 | % | | 11.3 | % | | 11.0 | % | | 10.5 | % | | 10.5 | % | | 10.3 | % |
| Investment securities to earning assets | | | 9.4 | % | | 10.1 | % | | 10.0 | % | | 10.5 | % | | 11.0 | % | | 11.1 | % | | 11.7 | % |
| Loans to earning assets | | | 83.9 | % | | 85.2 | % | | 82.9 | % | | 84.3 | % | | 81.5 | % | | 81.2 | % | | 81.7 | % |
| Loans to assets | | | 83.4 | % | | 84.5 | % | | 82.3 | % | | 83.8 | % | | 81.0 | % | | 80.5 | % | | 81.1 | % |
| Loans to deposits | | | 98.4 | % | | 101.1 | % | | 97.3 | % | | 98.9 | % | | 95.2 | % | | 95.5 | % | | 96.1 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
| Capital Ratios (Bank Level): | | | | | | | | | | | | | | | | | | | | | | |
| Equity / assets | | | 12.1 | % | | 12.2 | % | | 11.9 | % | | 11.9 | % | | 11.6 | % | | 11.4 | % | | 11.3 | % |
| Total risk-based capital ratio | | | 16.6 | % | | 16.3 | % | | 16.5 | % | | 16.2 | % | | 16.3 | % | | 16.4 | % | | 16.1 | % |
| Tier 1 risk-based capital ratio | | | 15.5 | % | | 15.3 | % | | 15.4 | % | | 15.2 | % | | 15.3 | % | | 15.4 | % | | 15.1 | % |
| Common equity tier 1 ratio | | | 15.5 | % | | 15.3 | % | | 15.4 | % | | 15.2 | % | | 15.3 | % | | 15.4 | % | | 15.1 | % |
| Leverage ratio | | | 12.7 | % | | 12.8 | % | | 12.6 | % | | 12.4 | % | | 11.9 | % | | 12.2 | % | | 11.8 | % |
12
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| John Marshall Bancorp, Inc. | ||||||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Loan, Deposit and Borrowing Detail (Unaudited) | ||||||||||||||||||||||||||||
| (Dollar amounts in thousands) | ||||||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 2025 | | 2024 | | ||||||||||||||||||||||||
| | September 30 | | June 30 | | March 31 | | December 31 | | September 30 | | June 30 | | March 31 | | ||||||||||||||
| Loans | | $ Amount | % of Total | | | $ Amount | % of Total | | | $ Amount | % of Total | | | $ Amount | % of Total | | | $ Amount | % of Total | | | $ Amount | % of Total | | | $ Amount | % of Total | |
| Commercial business loans | $ | 46,486 | 2.4 | % | $ | 43,158 | 2.3 | % | $ | 46,479 | 2.5 | % | $ | 47,612 | 2.5 | % | $ | 39,741 | 2.2 | % | $ | 41,806 | 2.3 | % | $ | 42,779 | 2.3 | % |
| Commercial PPP loans | | 124 | 0.0 | % | | 124 | 0.0 | % | | 124 | 0.0 | % | | 124 | 0.0 | % | | 126 | 0.0 | % | | 127 | 0.0 | % | | 129 | 0.0 | % |
| Commercial owner-occupied real estate loans | | 327,269 | 16.9 | % | | 320,061 | 16.7 | % | | 318,087 | 17.1 | % | | 329,222 | 17.6 | % | | 343,906 | 18.7 | % | | 349,644 | 19.2 | % | | 356,335 | 19.6 | % |
| Total business loans | | 373,879 | 19.3 | % | | 363,343 | 19.0 | % | | 364,690 | 19.6 | % | | 376,958 | 20.2 | % | | 383,773 | 20.9 | % | | 391,577 | 21.5 | % | | 399,243 | 21.9 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Investor real estate loans | | 770,405 | 39.9 | % | | 777,591 | 40.7 | % | | 759,002 | 40.7 | % | | 757,173 | 40.5 | % | | 726,771 | 39.5 | % | | 722,419 | 39.6 | % | | 692,418 | 38.0 | % |
| Construction & development loans | | 193,444 | 10.0 | % | | 186,409 | 9.7 | % | | 173,270 | 9.3 | % | | 164,988 | 8.8 | % | | 161,466 | 8.8 | % | | 138,744 | 7.6 | % | | 151,476 | 8.3 | % |
| Multi-family loans | | 93,477 | 4.8 | % | | 94,415 | 4.9 | % | | 95,556 | 5.1 | % | | 94,695 | 5.1 | % | | 91,426 | 5.0 | % | | 91,925 | 5.1 | % | | 94,719 | 5.2 | % |
| Total commercial real estate loans | | 1,057,326 | 54.7 | % | | 1,058,415 | 55.3 | % | | 1,027,828 | 55.1 | % | | 1,016,856 | 54.4 | % | | 979,663 | 53.3 | % | | 953,088 | 52.3 | % | | 938,613 | 51.5 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Residential mortgage loans | | 501,104 | 25.9 | % | | 489,522 | 25.6 | % | | 472,747 | 25.3 | % | | 472,932 | 25.3 | % | | 473,787 | 25.8 | % | | 476,764 | 26.2 | % | | 482,254 | 26.5 | % |
| Consumer loans | | 1,029 | 0.1 | % | | 998 | 0.1 | % | | 809 | 0.0 | % | | 906 | 0.0 | % | | 877 | 0.0 | % | | 876 | 0.0 | % | | 772 | 0.1 | % |
| Total loans | $ | 1,933,338 | 100.0 | % | $ | 1,912,278 | 100.0 | % | $ | 1,866,074 | 100.0 | % | $ | 1,867,652 | 100.0 | % | $ | 1,838,100 | 100.0 | % | $ | 1,822,305 | 100.0 | % | $ | 1,820,882 | 100.0 | % |
| Less: Allowance for loan credit losses | | (19,714) | | | | (19,298) | | | | (18,826) | | | | (18,715) | | | | (18,481) | | | | (18,433) | | | | (18,671) | | |
| Net deferred loan costs | | 4,770 | | | | 4,637 | | | | 4,398 | | | | 4,521 | | | | 4,498 | | | | 4,882 | | | | 5,049 | | |
| Net loans | $ | 1,918,394 | | | $ | 1,897,617 | | | $ | 1,851,646 | | | $ | 1,853,458 | | | $ | 1,824,117 | | | $ | 1,808,754 | | | $ | 1,807,260 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 2025 | | 2024 | | ||||||||||||||||||||||||
| | September 30 | | June 30 | | March 31 | | December 31 | | September 30 | | June 30 | | March 31 | | ||||||||||||||
| Deposits | | $ Amount | % of Total | | | $ Amount | % of Total | | | $ Amount | % of Total | | | $ Amount | % of Total | | | $ Amount | % of Total | | | $ Amount | % of Total | | | $ Amount | % of Total | |
| Non-interest bearing demand deposits | $ | 446,925 | 22.7 | % | $ | 438,628 | 23.1 | % | $ | 437,822 | 22.8 | % | $ | 433,288 | 22.9 | % | $ | 472,422 | 24.4 | % | $ | 437,169 | 22.8 | % | $ | 404,669 | 21.3 | % |
| Interest-bearing demand deposits: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| NOW accounts^(1)^ | | 366,655 | 18.6 | % | | 344,931 | 18.2 | % | | 355,752 | 18.5 | % | | 355,840 | 18.8 | % | | 324,660 | 16.8 | % | | 321,702 | 16.8 | % | | 318,445 | 16.8 | % |
| Money market accounts^(1)^ | | 360,640 | 18.3 | % | | 336,299 | 17.7 | % | | 349,634 | 18.2 | % | | 349,257 | 18.5 | % | | 360,725 | 18.6 | % | | 346,249 | 18.1 | % | | 326,135 | 17.1 | % |
| Savings accounts | | 39,427 | 2.0 | % | | 42,966 | 2.3 | % | | 42,583 | 2.2 | % | | 44,367 | 2.3 | % | | 43,779 | 2.3 | % | | 45,884 | 2.4 | % | | 50,664 | 2.7 | % |
| Certificates of deposit | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $250,000 or more | | 337,800 | 17.2 | % | | 324,343 | 17.1 | % | | 322,630 | 16.8 | % | | 315,549 | 16.7 | % | | 334,591 | 17.3 | % | | 339,908 | 17.8 | % | | 355,766 | 18.7 | % |
| Less than $250,000 | | 85,719 | 4.4 | % | | 80,500 | 4.2 | % | | 79,305 | 4.1 | % | | 83,060 | 4.4 | % | | 86,932 | 4.5 | % | | 91,258 | 4.8 | % | | 99,694 | 5.2 | % |
| QwickRate® certificates of deposit | | 249 | 0.0 | % | | 249 | 0.1 | % | | 249 | 0.0 | % | | 249 | 0.0 | % | | 4,119 | 0.2 | % | | 4,119 | 0.2 | % | | 5,117 | 0.3 | % |
| IntraFi® certificates of deposit | | 29,451 | 1.5 | % | | 27,015 | 1.4 | % | | 36,522 | 1.9 | % | | 34,288 | 1.8 | % | | 32,801 | 1.7 | % | | 32,922 | 1.7 | % | | 34,443 | 1.8 | % |
| Brokered deposits | | 301,962 | 15.3 | % | | 301,962 | 15.9 | % | | 297,678 | 15.5 | % | | 276,517 | 14.6 | % | | 276,121 | 14.2 | % | | 293,629 | 15.4 | % | | 306,057 | 16.1 | % |
| Total deposits | $ | 1,968,828 | 100.0 | % | $ | 1,896,893 | 100.0 | % | $ | 1,922,175 | 100.0 | % | $ | 1,892,415 | 100.0 | % | $ | 1,936,150 | 100.0 | % | $ | 1,912,840 | 100.0 | % | $ | 1,900,990 | 100.0 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Borrowings | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Federal funds purchased | $ | - - | 0.0 | % | $ | 16,500 | 17.0 | % | $ | - - | 0.0 | % | $ | - - | 0.0 | % | $ | - - | 0.0 | % | $ | - - | 0.0 | % | $ | - - | 0.0 | % |
| Federal Home Loan Bank advances | | 56,000 | 69.3 | % | | 56,000 | 57.5 | % | | 56,000 | 69.3 | % | | 56,000 | 69.3 | % | | 56,000 | 69.3 | % | | - - | 0.0 | % | | - - | 0.0 | % |
| Federal Reserve Bank borrowings | | - - | 0.0 | % | | - - | 0.0 | % | | - - | 0.0 | % | | - - | 0.0 | % | | - - | 0.0 | % | | 77,000 | 75.7 | % | | 77,000 | 75.7 | % |
| Subordinated debt, net | | 24,854 | 30.7 | % | | 24,833 | 25.5 | % | | 24,812 | 30.7 | % | | 24,791 | 30.7 | % | | 24,770 | 30.7 | % | | 24,749 | 24.3 | % | | 24,729 | 24.3 | % |
| Total borrowings | $ | 80,854 | 100.0 | % | $ | 97,333 | 100.0 | % | $ | 80,812 | 100.0 | % | $ | 80,791 | 100.0 | % | $ | 80,770 | 100.0 | % | $ | 101,749 | 100.0 | % | $ | 101,729 | 100.0 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total deposits and borrowings | $ | 2,049,682 | | | $ | 1,994,226 | | | $ | 2,002,987 | | | $ | 1,973,206 | | | $ | 2,016,920 | | | $ | 2,014,589 | | | $ | 2,002,719 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Core customer funding sources ^(2)^ | $ | 1,666,617 | 82.3 | % | $ | 1,594,682 | 81.0 | % | $ | 1,624,248 | 82.1 | % | $ | 1,615,649 | 82.9 | % | $ | 1,655,910 | 83.1 | % | $ | 1,615,092 | 81.2 | % | $ | 1,589,816 | 80.4 | % |
| Wholesale funding sources ^(3)^ | | 358,211 | 17.7 | % | | 374,711 | 19.0 | % | | 353,927 | 17.9 | % | | 332,766 | 17.1 | % | | 336,240 | 16.9 | % | | 374,748 | 18.8 | % | | 388,174 | 19.6 | % |
| Total funding sources | $ | 2,024,828 | 100.0 | % | $ | 1,969,393 | 100.0 | % | $ | 1,978,175 | 100.0 | % | $ | 1,948,415 | 100.0 | % | $ | 1,992,150 | 100.0 | % | $ | 1,989,840 | 100.0 | % | $ | 1,977,990 | 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. |
| --- | --- |
13
| | | | | | | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| John Marshall Bancorp, Inc. | | ||||||||||||||||
| | | | | | | | | | | | | | | | | | |
| Average Balance Sheets, Interest and Rates (unaudited) | | ||||||||||||||||
| (Dollar amounts in thousands) | | ||||||||||||||||
| | | | | | | | | | | | | | | | | | |
| | | Nine Months Ended September 30, 2025 | | Nine Months Ended September 30, 2024 | |||||||||||||
| | **** | | | **** | Interest Income / | **** | Average | **** | | | **** | Interest Income / | **** | Average | **** | ||
| (Dollars in thousands) | | Average Balance | | Expense | | Rate | | Average Balance | | Expense | | Rate | **** | ||||
| Assets: | | | | | | ||||||||||||
| Securities: | | | | | | ||||||||||||
| Taxable | | $ | 226,070 | $ | 3,508 | 2.07 | % | $ | 257,272 | $ | 3,864 | 2.01 | % | ||||
| Tax-exempt^(1)^ | | 1,379 | | 34 | 3.30 | % | 1,379 | | 34 | 3.29 | % | ||||||
| Total securities | | $ | 227,449 | | $ | 3,542 | 2.08 | % | $ | 258,651 | | $ | 3,898 | 2.01 | % | ||
| Loans, net of unearned income^(2)^: | | | | | | ||||||||||||
| Taxable | | 1,866,217 | | 75,818 | 5.43 | % | 1,802,807 | | 70,858 | 5.25 | % | ||||||
| Tax-exempt^(1)^ | | 16,900 | | 507 | 4.01 | % | 18,901 | | 546 | 3.86 | % | ||||||
| Total loans, net of unearned income | | $ | 1,883,117 | | $ | 76,325 | 5.42 | % | $ | 1,821,708 | | $ | 71,404 | 5.24 | % | ||
| Interest-bearing deposits in other banks | | $ | 129,942 | | $ | 4,339 | 4.46 | % | $ | 168,979 | | $ | 6,958 | 5.50 | % | ||
| Total interest-earning assets | | $ | 2,240,508 | | $ | 84,206 | 5.03 | % | $ | 2,249,338 | | $ | 82,260 | 4.88 | % | ||
| Total non-interest earning assets | | 13,718 | | | | | 16,133 | | | | | ||||||
| Total assets | | $ | 2,254,226 | | | | | $ | 2,265,471 | | | | | ||||
| Liabilities & Shareholders’ Equity: | | | | | | ||||||||||||
| Interest-bearing deposits | | | | | | ||||||||||||
| NOW accounts | | $ | 347,468 | | $ | 6,018 | 2.32 | % | $ | 312,255 | | $ | 6,533 | 2.79 | % | ||
| Money market accounts | | 346,041 | | 7,018 | 2.71 | % | 340,362 | | 8,190 | 3.21 | % | ||||||
| Savings accounts | | 42,853 | | 331 | 1.03 | % | 50,060 | | 529 | 1.41 | % | ||||||
| Time deposits | | 730,532 | | 23,358 | 4.27 | % | 773,537 | | 26,232 | 4.53 | % | ||||||
| Total interest-bearing deposits | | $ | 1,466,894 | | $ | 36,725 | 3.35 | % | $ | 1,476,214 | | $ | 41,484 | 3.75 | % | ||
| Federal funds purchased | | | 61 | | | 2 | | 4.38 | % | | 37 | | | 2 | | 7.22 | % |
| Subordinated debt | | 24,820 | | 1,047 | 5.64 | % | 24,737 | | 1,047 | 5.65 | % | ||||||
| Federal Reserve Bank borrowings | | — | | — | N/M | | 68,543 | | 2,451 | 4.78 | % | ||||||
| Federal Home Loan Bank advances | | | 56,000 | | | 1,696 | | 4.05 | % | | 5,723 | | | 174 | | 4.06 | % |
| Total interest-bearing liabilities | | $ | 1,547,775 | | $ | 39,470 | 3.41 | % | $ | 1,575,254 | | $ | 45,158 | 3.83 | % | ||
| Demand deposits | | 434,238 | | | | | 436,147 | | | | | ||||||
| Other liabilities | | 17,729 | | | | | 17,489 | | | | | ||||||
| Total liabilities | | $ | 1,999,742 | | | | | $ | 2,028,890 | | | | | ||||
| Shareholders’ equity | | $ | 254,484 | | | | | $ | 236,581 | | | | | ||||
| Total liabilities and shareholders’ equity | | $ | 2,254,226 | | | | | $ | 2,265,471 | | | | | ||||
| | | | | | | | | | | | | | | | | | |
| Tax-equivalent net interest income and spread (Non-GAAP)^(1)^ | | | | | $ | 44,736 | | 1.62 | % | | | | $ | 37,102 | | 1.06 | % |
| Less: tax-equivalent adjustment | | | | | | 114 | | | | | | | | 122 | | | |
| Net interest income and spread (GAAP) | | | | | $ | 44,622 | | 1.61 | % | | | | $ | 36,980 | | 1.05 | % |
| | | | | | | | | | | | | | | | | | |
| Interest income/earning assets | | | | | | | | 5.02 | % | | | | | | | 4.88 | % |
| Interest expense/earning assets | | | | | | | | 2.36 | % | | | | | | | 2.68 | % |
| Net interest margin | | | | | | | | 2.66 | % | | | | | | | 2.20 | % |
| | | | | | | | | | | | | | | | | | |
| Tax-equivalent interest income/earning assets (Non-GAAP)^(1)^ | | | | | | | | 5.03 | % | | | | | | | 4.88 | % |
| Interest expense/earning assets | | | | | | | | 2.36 | % | | | | | | | 2.68 | % |
| Tax-equivalent net interest margin (Non-GAAP)^(3)^ | | | | | | | | 2.67 | % | | | | | | | 2.20 | % |
| (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 $114 thousand and $122 thousand for the nine months ended September 30, 2025 and September 30, 2024, respectively. |
|---|---|
| (2) | The Company did not have any loans on non-accrual as of September 30, 2025 and September 30, 2024. |
| --- | --- |
| (3) | Tax-equivalent net interest margin adjusts for differences in tax treatment of interest income sources. The entire tax-equivalent adjustment is attributable to interest income on earning assets. Interest expense and the related cost of interest-bearing liabilities and cost of funds ratios are not affected by the tax-equivalent components. |
| --- | --- |
14
| | | | | | | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| John Marshall Bancorp, Inc. | | ||||||||||||||||
| | | | | | | | | | | | | | | | | | |
| Average Balance Sheets, Interest and Rates (unaudited) | | ||||||||||||||||
| (Dollar amounts in thousands) | | ||||||||||||||||
| | | | | | | | | | | | | | | | | | |
| | | Three Months Ended September 30, 2025 | | Three Months Ended September 30, 2024 | |||||||||||||
| | **** | | | **** | Interest Income / | **** | Average | **** | | | **** | Interest Income / | **** | Average | **** | ||
| (Dollars in thousands) | | Average Balance | | Expense | | Rate | | Average Balance | | Expense | | Rate | **** | ||||
| Assets: | | | | | | ||||||||||||
| Securities: | | | | | | ||||||||||||
| Taxable | | $ | 220,424 | $ | 1,162 | 2.09 | % | $ | 247,975 | $ | 1,235 | 1.98 | % | ||||
| Tax-exempt^(1)^ | | 1,378 | | 11 | 3.17 | % | 1,379 | | 11 | 3.17 | % | ||||||
| Total securities | | $ | 221,802 | | $ | 1,173 | 2.10 | % | $ | 249,354 | | $ | 1,246 | 1.99 | % | ||
| Loans, net of unearned income^(2)^: | | | | | | | | ||||||||||
| Taxable | | 1,894,756 | | 26,047 | 5.45 | % | 1,801,422 | | 24,173 | 5.34 | % | ||||||
| Tax-exempt^(1)^ | | 17,519 | | 182 | 4.12 | % | 17,050 | | 168 | 3.92 | % | ||||||
| Total loans, net of unearned income | | $ | 1,912,275 | | $ | 26,229 | 5.44 | % | $ | 1,818,472 | | $ | 24,341 | 5.33 | % | ||
| Interest-bearing deposits in other banks | | $ | 141,309 | | $ | 1,583 | 4.44 | % | $ | 209,601 | | $ | 2,878 | 5.46 | % | ||
| Total interest-earning assets | | $ | 2,275,386 | | $ | 28,985 | 5.06 | % | $ | 2,277,427 | | $ | 28,465 | 4.97 | % | ||
| Total non-interest earning assets | | 13,966 | | | | | 14,958 | | | | | ||||||
| Total assets | | $ | 2,289,352 | | | | | $ | 2,292,385 | | | | | ||||
| Liabilities & Shareholders’ Equity: | | | | | | ||||||||||||
| Interest-bearing deposits | | | | | | ||||||||||||
| NOW accounts | | $ | 354,918 | | | 2,057 | | 2.30 | % | $ | 319,463 | | | 2,321 | | 2.89 | % |
| Money market accounts | | 350,431 | | | 2,418 | | 2.74 | % | 374,141 | | | 3,068 | | 3.26 | % | ||
| Savings accounts | | 43,401 | | | 120 | | 1.10 | % | 45,980 | | | 168 | | 1.45 | % | ||
| Time deposits | | 741,797 | | | 7,829 | | 4.19 | % | 738,680 | | | 8,545 | | 4.60 | % | ||
| Total interest-bearing deposits | | $ | 1,490,547 | | $ | 12,424 | | 3.31 | % | $ | 1,478,264 | | $ | 14,102 | | 3.80 | % |
| Federal funds purchased | | | 1 | | | — | | — | % | | — | | | — | | N/M | |
| Subordinated debt | | 24,841 | | | 349 | 5.57 | % | 24,758 | | | 349 | 5.61 | % | ||||
| Federal Reserve Bank borrowings | | — | | | — | N/M | | 53,565 | | | 647 | 4.81 | % | ||||
| Federal Home Loan Bank advances | | | 56,001 | | | 572 | | 4.05 | % | | 17,044 | | | 174 | | 4.06 | % |
| Total interest-bearing liabilities | | $ | 1,571,390 | | $ | 13,345 | 3.37 | % | $ | 1,573,631 | | $ | 15,272 | 3.86 | % | ||
| Demand deposits | | 443,909 | | | | | 461,337 | | | | | ||||||
| Other liabilities | | 16,060 | | | | | 16,808 | | | | | ||||||
| Total liabilities | | $ | 2,031,359 | | | | | $ | 2,051,776 | | | | | ||||
| Shareholders’ equity | | $ | 257,993 | | | | | $ | 240,609 | | | | | ||||
| Total liabilities and shareholders’ equity | | $ | 2,289,352 | | | | | $ | 2,292,385 | | | | | ||||
| | | | | | | | | | | | | | | | | | |
| Tax-equivalent net interest income and spread (Non-GAAP)^(1)^ | | | | | $ | 15,640 | | 1.69 | % | | | | $ | 13,193 | | 1.11 | % |
| Less: tax-equivalent adjustment | | | | | | 40 | | | | | | | | 37 | | | |
| Net interest income and spread (GAAP) | | | | | $ | 15,600 | | 1.68 | % | | | | $ | 13,156 | | 1.11 | % |
| | | | | | | | | | | | | | | | | | |
| Interest income/earning assets | | | | | | | | 5.05 | % | | | | | | | 4.97 | % |
| Interest expense/earning assets | | | | | | | | 2.33 | % | | | | | | | 2.67 | % |
| Net interest margin | | | | | | | | 2.72 | % | | | | | | | 2.30 | % |
| | | | | | | | | | | | | | | | | | |
| Tax-equivalent interest income/earning assets (Non-GAAP)^(1)^ | | | | | | | | 5.06 | % | | | | | | | 4.97 | % |
| Interest expense/earning assets | | | | | | | | 2.33 | % | | | | | | | 2.67 | % |
| Tax-equivalent net interest margin (Non-GAAP)^(3)^ | | | | | | | | 2.73 | % | | | | | | | 2.30 | % |
| (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 $40 thousand and $37 thousand for the three months ended September 30, 2025 and September 30, 2024, respectively. |
|---|---|
| (2) | The Company did not have any loans on non-accrual as of September 30, 2025 and September 30, 2024. |
| --- | --- |
| (3) | Tax-equivalent net interest margin adjusts for differences in tax treatment of interest income sources. The entire tax-equivalent adjustment is attributable to interest income on earning assets. Interest expense and the related cost of interest-bearing liabilities and cost of funds ratios are not affected by the tax-equivalent components. |
| --- | --- |
15
| | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|
| John Marshall Bancorp, Inc. | ||||||||||
| | | | | | | | | | | |
| Reconciliation of Certain Non-GAAP Financial Measures (unaudited) | ||||||||||
| (Dollar amounts in thousands) | ||||||||||
| | | As of | ||||||||
| | | September 30, 2025 | | December 31, 2024 | | September 30, 2024 | ||||
| Regulatory Ratios (Bank) | | | | | | | | |||
| Total risk-based capital (GAAP) | | $ | 310,363 | | $ | 295,119 | | $ | 291,881 | |
| Less: Unrealized losses on available-for-sale securities, net of tax benefit^(1)^ | | | 7,818 | | | 10,732 | | | 9,304 | |
| Less: Unrealized losses on held-to-maturity securities, net of tax benefit^(1)^ | | 9,199 | | 12,353 | | 10,285 | | |||
| Adjusted total risk-based capital, excluding unrealized losses on available-for-sale and held-to-maturity securities, net of tax benefit (Non-GAAP) | | $ | 293,346 | | $ | 272,034 | | $ | 272,292 | |
| | | | | | | | | | | |
| Tier 1 capital (GAAP) | | $ | 290,073 | | $ | 276,468 | | $ | 273,529 | |
| Less: Unrealized losses on available-for-sale securities, net of tax benefit^(1)^ | | | 7,818 | | | 10,732 | | | 9,304 | |
| Less: Unrealized losses on held-to-maturity securities, net of tax benefit^(1)^ | | 9,199 | | 12,353 | | 10,285 | | |||
| Adjusted tier 1 capital, excluding unrealized losses on available-for-sale and held-to-maturity securities, net of tax benefit (Non-GAAP) | | $ | 273,056 | | $ | 253,383 | | $ | 253,940 | |
| | | | | | | | | | | |
| Risk weighted assets (GAAP) | | $ | 1,873,668 | | $ | 1,819,888 | | $ | 1,787,663 | |
| Less: Risk weighted available-for-sale securities | | | 18,574 | | | 19,623 | | | 21,440 | |
| Less: Risk weighted held-to-maturity securities | | 15,986 | | 16,462 | | 16,618 | | |||
| Adjusted risk weighted assets, excluding available-for-sale and held-to-maturity securities (Non-GAAP) | | $ | 1,839,108 | | $ | 1,783,803 | | $ | 1,749,605 | |
| | | | | | | | | | | |
| Total average assets for leverage ratio (GAAP) | | $ | 2,286,186 | | $ | 2,235,952 | | $ | 2,290,205 | |
| Less: Unrealized losses on available-for-sale securities, net of tax benefit^(1)^ | | | 7,818 | | | 10,732 | | | 9,304 | |
| Less: Unrealized losses on held-to-maturity securities, net of tax benefit^(1)^ | | 9,199 | | 12,353 | | 10,285 | | |||
| Adjusted total average assets for leverage ratio, excluding available-for-sale and held-to-maturity securities (Non-GAAP) | | $ | 2,269,169 | | $ | 2,212,867 | | $ | 2,270,616 | |
| | | | | | | | | | | |
| Total risk-based capital ratio^(2)^ | | | | | | | | | | |
| Total risk-based capital ratio (GAAP) | | | 16.6 | % | | 16.2 | % | | 16.3 | % |
| Adjusted total risk-based capital ratio (Non-GAAP) ^(3)^ | | | 16.0 | % | | 15.3 | % | | 15.6 | % |
| | | | | | | | | | | |
| Tier 1 capital ratio^(4)^ | | | | | | | | | | |
| Tier 1 risk-based capital ratio (GAAP) | | | 15.5 | % | | 15.2 | % | | 15.3 | % |
| Adjusted tier 1 risk-based capital ratio (Non-GAAP) ^(5)^ | | | 14.9 | % | | 14.2 | % | | 14.5 | % |
| | | | | | | | | | | |
| Common equity tier 1 ratio^(6)^ | | | | | | | | | | |
| Common equity tier 1 ratio (GAAP) | | | 15.5 | % | | 15.2 | % | | 15.3 | % |
| Adjusted common equity tier 1 ratio (Non-GAAP) ^(7)^ | | | 14.9 | % | | 14.2 | % | | 14.5 | % |
| | | | | | | | | | | |
| Leverage ratio^(8)^ | | | | | | | | | | |
| Leverage ratio (GAAP) | | | 12.7 | % | | 12.4 | % | | 11.9 | % |
| Adjusted leverage ratio (Non-GAAP) ^(9)^ | | | 12.0 | % | | 11.5 | % | | 11.2 | % |
| (1) | Includes tax benefit calculated using the federal statutory tax rate of 21%. |
|---|---|
| (2) | The total risk-based capital ratio is calculated by dividing total risk-based capital by risk weighted assets. |
| --- | --- |
| (3) | The adjusted total risk-based capital ratio is calculated by dividing adjusted total risk-based capital by adjusted risk weighted assets. |
| --- | --- |
| (4) | The tier 1 capital ratio is calculated by dividing tier 1 capital by risk weighted assets. |
| --- | --- |
| (5) | The adjusted tier 1 capital ratio is calculated by dividing adjusted tier 1 capital by adjusted risk weighted assets. |
| --- | --- |
| (6) | The common equity tier 1 ratio is calculated by dividing tier 1 capital by risk weighted assets. |
| --- | --- |
| (7) | The adjusted common equity tier 1 ratio is calculated by dividing adjusted tier 1 capital by adjusted risk weighted assets. |
| --- | --- |
| (8) | The leverage ratio is calculated by dividing tier 1 capital by total average assets for leverage ratio. |
| --- | --- |
| (9) | The adjusted leverage ratio is calculated by dividing adjusted tier 1 capital by adjusted total average assets for leverage ratio. |
| --- | --- |
16