8-K
John Marshall Bancorp, Inc. (JMSB)
8-K
2025-09-03
For: 2025-09-03
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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): September 3, 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 , 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 7.01 Regulation FD Disclosure.
The management of John Marshall Bancorp, Inc. (the “Company”) will participate in the Raymond James 2025 U.S. Bank Conference in Chicago, IL on September 3, 2025. A copy of the presentation will be made available on the Investor Relations section of the Company’s website (http://www.johnmarshallbank.com) and is furnished as Exhibit 99.1 to this report.
Item 9.01 Financial Statements and Exhibits.
Exhibits.
| Exhibit No. | Description | |
|---|---|---|
| 99.1 | | Presentation for the Raymond James 2025 U.S. Bank Conference. |
| 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: September 3, 2025 | By: | /s/ Kent D. Carstater |
| Kent D. Carstater<br><br>Senior Executive Vice President, Chief Financial Officer |
Exhibit 99.1
| September 2025<br>Raymond James<br>U.S. Bank Conference<br>1 |
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| Forward Looking Statements<br>2<br>In addition to historical information, this presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are based<br>on certain assumptions and describe future plans, strategies and expectations of John Marshall Bancorp, Inc. (the “Company”). These forward-looking statements are generally<br>identified by use of the words “believe,” “expect,” “intend,” “anticipate,” “estimate,” “project,” “will,” “should,” “may,” “view,” “opportunity,” “potential,” or similar expressions. Our<br>ability to predict results or the actual effect of future plans or strategies is inherently uncertain. These forward-looking statements are based on our beliefs and assumptions and on<br>the information available to us at the time that these disclosures were prepared, and involve known and unknown risks, uncertainties and other factors that may cause our actual<br>results to differ materially from any future results expressed or implied by such forward-looking statements. Although we believe the expectations reflected in such forward-looking<br>statements are reasonable, we can give no assurance such expectations will prove to have been correct. Should any known or unknown risks and uncertainties develop into actual<br>events, those developments could have material adverse effects on our business, financial condition and results of operations. Factors that could have a material adverse effect<br>on the operations of the Company and John Marshall Bank (the “Bank”) include, but are not limited to, the following: the concentration of our business in the Washington, D.C.<br>metropolitan area and the effect of changes in the economic, political and environmental conditions on this market, including potential reductions in spending by the U.S.<br>Government and related reductions in the federal workforce; adequacy of our allowance for loan credit losses, allowance for unfunded commitments credit losses, and allowance<br>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<br>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;<br>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<br>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<br>the monetary and fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Federal Reserve; additional risks related to new lines of business, products,<br>product enhancements or services; increased competition with other financial institutions and fintech companies; adverse changes in the securities markets; changes in the<br>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<br>regulations or policies affecting financial institutions, including changes in regulatory structure and in regulatory fees and capital requirements; compliance with legislative or<br>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<br>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<br>reporting and our ability to remediate any future material weakness in our internal controls over financial reporting; geopolitical conditions, including trade restrictions and tariffs,<br>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<br>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<br>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<br>societal responses thereto; technological risks and developments, and cyber threats, attacks, or events; changes in accounting policies and practices; our ability to successfully<br>capitalize on growth opportunities; our ability to retain key employees; deteriorating economic conditions, either nationally or in our market area, including higher unemployment<br>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 Item 1A. Risk Factors in<br>the Company’s 2024 Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 28, 2025. These risks and uncertainties should be considered in<br>evaluating forward-looking statements and undue reliance should not be placed on such statements. We do not undertake, and specifically disclaim any obligation, to publicly<br>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<br>occurrence of anticipated or unanticipated events. All written or oral forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary note.<br>Use of Non-GAAP Financial Measures<br>This presentation contains certain financial information determined by methods other than in accordance with generally accepted accounting principles in the United States<br>(“GAAP”). These non-GAAP financial measures are a supplement to GAAP, which is used to prepare the Company’s financial statements, and should not be considered in isolation<br>or as a substitute for comparable measures calculated in accordance with GAAP. In addition, the Company’s non-GAAP financial measures may not be comparable to non-GAAP<br>financial measures of other companies. The Company uses the non-GAAP financial measures discussed herein in its analysis of the Company’s performance. Management believes<br>this information is utilized by regulators and market analysts to evaluate a company’s financial condition and therefore, such information is useful to investors. |
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| 3<br>Franchise Overview<br>Financial Highlights<br>Credit & Asset Quality<br>Capital & Liquidity<br>Appendices |
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| Company Overview<br>4<br> John Marshall Bank is a growth-oriented commercial bank headquartered in<br>Reston, Virginia<br> Established in 2006, the Company has grown organically to $2.3 billion in assets<br> Seasoned executive team with decades of in-market banking experience<br> Strategy emphasizes local market growth in loans, core funding, and profitability<br>while maintaining strong asset quality and delivering tailored banking services<br>– Hire experienced commercial banking and business development officers<br>– Enhance customer experience by leveraging digital platform<br>– Commercially-oriented bank with focus on deposit-rich industry segments<br>– Diversify loan portfolio and improve funding mix<br>– Grow non-interest income<br>– Continue to focus on strong operating leverage and uphold rigorous expense control,<br>while driving profitability<br>– Maintain financial and credit quality discipline |
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| Rewarding Our<br>Shareholders<br>Attractive<br>Market<br>Credit<br>Discipline<br>Prime for<br>Future<br>Growth<br>Experienced<br>Management<br>5<br>Investment Attributes |
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| John Marshall Franchise<br>6<br> Bank commenced operations in April 2006<br> Chris Bergstrom named President and CEO April 30, 2018<br> Building value by delivering tailored banking services and<br>exceptional client experiences<br> Commercially-oriented bank targeting:<br>• Commercial Real Estate Lending<br>• General Trade Contractors<br>• Government Contractor Lending<br>• Health Services<br>• Nonprofits & Associations<br>• Private Schools & Charter Schools<br>• Professional Services<br>• Property Management<br>• Title & Escrow Services<br> 8 full-service banking centers<br> 141 FTE employees as of June 30, 2025<br> Second Quarter Highlights:<br>• For the quarter ended June 30, 2025, the Company<br>reported:<br>• 11 basis points increase in net interest margin when<br>compared to the quarter ended March 31, 2025 (2.58%<br>to 2.69%).<br>• Net income of $5.1 million; represents a 6.1% increase<br>over the $4.8 million for the quarter ended March 31,<br>2025.<br>• Pre-tax, pre-provision earnings (Non-GAAP) of $7.1<br>million; represents a 12.1% increase over the $6.4 million<br>for the quarter ended March 31, 2025.<br>• $135.5 million new loan commitments, a 39.0 million or<br>40.5% increase over the quarter ended March 31, 2025.<br>Financial Highlights<br>YTD 2025 profitability figures are for the six months ended 6/30/2025, annualized.<br>1 - Non-accruing assets include nonaccrual loans and leases, and foreclosed or repossessed assets.<br>*Core (Non-GAAP) adjusted for the impact of the Restructuring as discussed in the Company's Form 10-K<br>filed on March 20, 2024. See Reconciliation of Non-GAAP Disclosures for more details.<br>1<br>($ in millions) YTD<br>2022 2024 June 30<br>Reported Core* 2025<br>Balance Sheet<br>Total Assets $2,348 $2,243 $2,243 $2,235 $2,268<br>Gross Loans 1,790 1,860 1,860 1,872 1,917<br>Total Deposits 2,068 1,907 1,907 1,892 1,897<br>Loans / Deposits 87% 98% 98% 99% 101%<br>Capital (Bank level)<br>Common Equity / Assets 10.0% 11.1% 11.1% 11.9% 12.2%<br>Tier 1 Leverage Ratio 11.3% 11.6% 11.6% 12.4% 12.8%<br>Total Risk-Based Capital Ratio 15.6% 15.7% 15.7% 16.2% 16.3%<br>Profitability<br>Net Income $31,803 $5,158 $19,779 $17,121 $9,913<br>ROAA 1.40% 0.22% 0.85% 0.76% 0.89%<br>ROAE 15.18% 2.32% 8.91% 7.16% 7.91%<br>Net Interest Margin 3.16% 2.22% 2.20% 2.28% 2.63%<br>Non-interest Expense / Average Assets 1.40% 1.33% 1.33% 1.41% 1.49%<br>Efficiency Ratio 44.2% 86.7% 58.5% 59.7% 55.1%<br>Asset Quality<br>Non-Accruing Assets / Assets 0.00% 0.00% 0.00% 0.00% 0.00%<br>Allowance for Credit Losses / NPLs N/M N/M N/M N/M N/M<br>Allowance for Credit Losses / Gross Loans 1.13% 1.05% 1.05% 1.00% 1.01%<br>NCOs / Average Loans 0.00% 0.00% 0.00% 0.00% 0.00%<br>2023<br>Year Ended December 31, |
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| 7<br>Selective FinTech partnerships provide<br>operating leverage and fuel additional growth<br>Customer<br>Experience<br>Operating<br>Efficiencies<br>Risk<br>Mitigation<br>FinTech Partnership Benefits<br>Various FinTech Partnerships<br>Leveraging Technology |
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| Executive Leadership<br>8<br>Chris Bergstrom<br>President & CEO<br>Chris Bergstrom has over 43 years of experience in the banking industry. Before joining John Marshall<br>Bank, Mr. Bergstrom served in a variety of executive positions during 19 years with Cardinal Financial<br>Corporation and Cardinal Bank, most recently serving as President and Chief Executive Officer from<br>October 2015 until United Bankshares, Inc.’s acquisition of Cardinal in April 2017. He was also President<br>of United Bank from April 2017 to April 2018. Mr. Bergstrom recently served as the Chairman of the<br>Board of the Virginia Bankers Association. Mr. Bergstrom received his Master of Science in Finance<br>from Virginia Commonwealth University and a Bachelors of Business Administration degree from<br>James Madison University.<br>Kent Carstater<br>SEVP, Chief Financial<br>Officer<br>Andy Peden<br>SEVP, Chief Banking<br>Officer<br>Andrew Peden is the Chief Banking Officer at John Marshall Bank, and was the Chief Lending Officer<br>for four years before being promoted to his current position. Prior to joining JMB, he had over 18 years<br>of banking experience, all but one year with Cardinal Bank. Mr. Peden received a Bachelor of<br>Science degree in business from the University of Richmond – Robins School of Business. He is involved<br>in both the business and local community, by serving on the Board of the VBA Management Services,<br>Inc., a subsidiary of the VBA, and as a volunteer youth sports coach in Arlington, VA.<br>Kent Carstater has over 25 years of financial services experience. He has responsibility for accounting,<br>financial, human resources, information technology, investor relations and risk management<br>operations. Mr. Carstater also chairs the Company’s Asset/Liability management committee. He<br>joined John Marshall Bank in July 2016 as Senior Vice President of Market Risk Management,<br>overseeing the Bank’s liquidity, asset/liability, investment, capital planning and strategic planning<br>functions. From 2012 to 2016, Mr. Carstater served as a Senior Vice President and Treasurer at the Bank<br>of Georgetown. In that role, he was responsible for financial and risk management, investor relations,<br>capital markets activities and strategic planning. Prior to becoming a commercial banker in 2012, he<br>advised community bank executives on strategic matters as an investment banker and founded a<br>private equity firm focused on investing in financial institutions. Mr. Carstater earned his Bachelors of<br>Science from Virginia Tech in Finance and Masters of Business Administration from the Darden School<br>of Business at the University of Virginia. |
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| 9<br>Franchise Overview<br>• Founded 2006<br>• $2.3 billion in assets<br>• Utilize a branch-light strategy and<br>technology to drive efficiency<br>and enhance the experience for<br>our customers.<br>• Approximately 97% of our deposit<br>dollars are collected through<br>mobile banking and treasury<br>management products.<br>• No BaaS or fintech originated<br>deposits.<br>• Only U.S. metropolitan area with<br>population more than 5 million<br>and median household income<br>exceeding $120,000.<br>Main Office/Reston:<br>1943 Isaac Newton<br>Reston, VA<br>District of<br>Columbia:<br>1625 K Street, NW<br>Tysons Corner:<br>8229 Boone Blvd.<br>Tysons Corner, VA<br>Prince William County:<br>12701 Marblestone Dr.<br>Woodbridge, VA<br>Montgomery<br>County:<br>11 N. Washington St.<br>Rockville, MD<br>City of Alexandria:<br>640 Franklin St.<br>Alexandria, VA<br>Arlington County:<br>2300 Wilson Blvd.<br>Arlington, VA<br>Loudoun County:<br>540 Fort Evans Road<br>Leesburg, VA<br>Eight regional banking centers serve as business development hubs. |
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| Attractive Metro Markets<br>10<br>Median Household Income $ (2025) Projected Population Growth % (2025-2030)<br>Educational Attainment % (>=Bachelors Degree) Unemployment Rate % (May 2025, NSA)<br>Sources: S&P Global Market Intelligence, Bureau of Economic Analysis and data.census.gov. Blue line represents the average of the six metro markets shown |
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| Market Growth + Consolidation = Unique Opportunity<br>11<br>Data as of: 6/30/2013 Data as of: 6/30/2024<br>Figures represent market deposits within the Washington, D.C. MSA<br>Market Deposit<br>Deposits Market<br>Company ($000) Share (%)<br>1 Wells Fargo & Co. (CA) 23,769,182 15.3<br>2 Capital One Financial Corp. (VA) 22,128,708 14.2<br>3 Bank of America Corporation (NC) 21,404,120 13.8<br>4 SunTrust Banks Inc. (GA) 16,657,678 10.7<br>5 BB&T Corp. (NC) 13,255,025 8.5<br>6 PNC Financial Services Group (PA) 10,708,198 6.9<br>7 Citigroup Inc. (NY) 6,617,764 4.3<br>8 M&T Bank Corp. (NY) 4,062,737 2.6<br>9 HSBC Holdings 3,270,777 2.1<br>10 Toronto-Dominion Bank 3,025,720 1.9<br>11 Eagle Bancorp Inc (MD) 2,904,390 1.9<br>12 Sandy Spring Bancorp Inc. (MD) 2,277,639 1.5<br>13 Burke & Herbert Bank & Trust (VA) 2,204,402 1.4<br>14 Virginia Commerce Bank 2,192,719 1.4<br>15 Cardinal Financial Corporation (VA) 2,130,662 1.4<br>16 United Bankshares Inc. (WV) 2,037,632 1.3<br>17 WashingtonFirst Bankshares, Inc. (VA) 970,001 0.6<br>18 Middleburg Financial Corporation (VA) 922,039 0.6<br>19 Old Line Bancshares, Inc. (MD) 794,410 0.5<br>20 Bank of Georgetown (DC) 772,085 0.5<br>21 Virginia Heritage Bank (VA) 729,530 0.5<br>22 Access National Corporation (VA) 669,547 0.4<br>23 Fauquier Bankshares Inc. (VA) 519,869 0.3<br>24 Community Finl Corp. (MD) 519,106 0.3<br>25 Acacia Federal Savings Bank (VA) 496,612 0.3<br>26 Presidential Bank, FSB (MD) 491,880 0.3<br>27 John Marshall Bancorp Inc. (VA) 430,564 0.3<br>28 Southern National Bncp of VA (VA) 407,428 0.3<br>29 FVCBankcorp Inc. (VA) 392,992 0.3<br>Other 8,703,727 5.6<br>Market Deposit<br>Deposits Market<br>Company ($000) Share (%)<br>1 Capital One Financial Corp. (VA) 57,835,363 19.8%<br>2 Bank of America Corporation (NC) 51,370,070 17.6%<br>3 Truist Financial Corp. (NC) 36,119,564 12.4%<br>4 Wells Fargo & Co. (CA) 33,180,886 11.4%<br>5 The PNC Finl Svcs Grp (PA) 15,954,639 5.5%<br>6 Atlantic Union Bkshs Corp. (VA) 13,700,557 4.7%<br>7 Citigroup Inc. (NY) 11,195,000 3.8%<br>8 United Bankshares Inc. (WV) 10,071,646 3.5%<br>9 Eagle Bancorp Inc (MD) 8,304,467 2.8%<br>10 M&T Bank Corp. (NY) 5,946,948 2.0%<br>11 The Toronto-Dominion Bank 5,911,518 2.0%<br>12 Forbright Inc. (MD) 5,593,845 1.9%<br>13 JPMorgan Chase & Co. (NY) 3,876,831 1.3%<br>14 Burke & Herbert Finl Svcs Corp (VA) 3,246,023 1.1%<br>15 HSBC Holdings plc 2,203,622 0.8%<br>16 FVCBankcorp Inc. (VA) 1,931,676 0.7%<br>17 Capital Bancorp Inc. (MD) 1,927,442 0.7%<br>18 John Marshall Bancorp Inc. (VA) 1,917,653 0.7%<br>19 MainStreet Bcshs (VA) 1,757,600 0.6%<br>20 Workers United (PA) 1,555,320 0.5%<br>21 WesBanco Inc. (WV) 1,427,302 0.5%<br>22 Chain Bridge Bancorp Inc. (VA) 1,303,526 0.4%<br>23 Pinnacle Financial Partners (TN) 995,074 0.3%<br>24 Freedom Finl Holdings Inc. (VA) 881,203 0.3%<br>25 ODNB Financial Corporation (VA) 840,397 0.3%<br>26 Shore Bancshares Inc. (MD) 813,492 0.3%<br>27 Eagle Financial Services Inc. (VA) 769,189 0.3%<br>28 Presidential Holdings Inc. (VA) 694,905 0.2%<br>29 Trustar Bank (VA) 693,142 0.2%<br>Other 9,720,622 3.3% |
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| 12<br>Franchise Overview<br>Financial Highlights<br>Credit & Asset Quality<br>Capital & Liquidity<br>Appendices |
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| Second Quarter 2025 Highlights<br>13<br> Earnings Accelerating<br>o Net income of $5.1 million for the three months ended June 30, 2025 represent a 30.7% increase as compared to $3.9<br>million for the three months ended June 30, 2024 and a 6.1% increase over the $4.8 million for the three months ended<br>March 31, 2025.<br>o Pre-tax, pre-provision earnings (Non-GAAP) of $7.1 million for the three months ended June 30, 2025 represent a 50.7%<br>increase as compared to $4.7 million for the three months ended June 30, 2024 and a 12.1% increase over the $6.4<br>million for the three months ended March 31, 2025.<br> Continued Margin Expansion<br>o The Company expanded net interest margin for the fifth consecutive quarter, growing by 11 basis points to 2.69%,<br>compared to 2.58% for the first quarter of 2025 and 2.19% for the second quarter of 2024.<br> Significant Increase in Net Interest Income<br>o For the three months ended June 30, 2025, the Company reported net interest income of $14.9 million, representing a<br>$2.8 million or 23.5% increase over the prior year quarter and a $0.8 million or 5.9% increase over the previous quarter.<br> Excellent Asset Quality<br>o As of June 30, 2025 the Company had no loans greater than 30 days past due, no non-accrual loans and no other real<br>estate owned assets. The Company recorded no net charge-offs during the second quarter of 2025 and there were no<br>loans classified as substandard as of June 30, 2025.<br> Strong Loan Demand<br>o The Company’s loan pipeline remained strong with $135.5 million in new commitments recorded during the three<br>months ended June 30, 2025, a 40.5% improvement on the $96.5 million of new commitments recorded during the three<br>months ended March 31, 2025. The second quarter 2025 new commitment production represents the highest quarterly<br>level since the fourth quarter of 2022. New commitments represent loans closed, but not necessarily fully funded as of<br>the end of the respective reporting period.<br> Robust Capitalization<br>o Each of the Bank’s regulatory capital ratios remained well in excess of the regulatory well-capitalized thresholds as of<br>June 30, 2025. During the second quarter of 2025, the Company repurchased 76,804 shares of its common stock at an<br>average price of $17.12. The aggregate repurchase activity was accretive to the Company’s book value per share.<br> Growing Book Value per Share<br>o Book value per share increased from $16.54 as of June 30, 2024 to $17.83 as of June 30, 2025, a 7.8% increase. The June<br>30, 2025 book value per share reflects our $0.30 per share cash dividend declared on April 22, 2025 and paid on July 7,<br>2025. |
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| 14<br>Historical Growth<br>Total Deposits ($MM) Total Assets ($MM)<br>Total Gross Loans ($MM)<br>1st half figures reflect balances at the first six months ended of each year.<br>$1,138<br>$1,309<br>$1,640<br>$1,882<br>$2,068<br>$1,907 $1,892 $1,913 $1,897<br>2018 2019 2020 2021 2022 2023 2024 1H24 1H25<br>$1,395<br>$1,582<br>$1,885<br>$2,149<br>$2,348 $2,243 $2,235 $2,270 $2,268<br>2018 2019 2020 2021 2022 2023 2024 1H24 1H25<br>$1,163<br>$1,326<br>$1,563 $1,666<br>$1,790 $1,860 $1,872 $1,827 $1,917<br>2018 2019 2020 2021 2022 2023 2024 1H24 1H25 |
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| 15<br>Loan Portfolio Composition<br>• The Company’s loan pipeline remained strong with $135.5<br>million in new commitments recorded during the quarter<br>ended June 30, 2025.<br>• 40.5% improvement over the $96.5 million in new commitments<br>recorded in the quarter ended March 31, 2025.<br>• 52.7% improvement over the $89.2 million in new commitments<br>recorded during the quarter ended June 30, 2024.<br>• The Company’s loan pipeline at 6/30/2025 was robust and<br>gaining momentum. We saw increased lending<br>opportunities that meet our underwriting standards.<br>• The Company remains steadfast in adhering to our strict<br>underwriting standards and the diligent management of<br>the portfolio.<br>• Tax-equivalent yield on total loans of 5.42% for the three<br>months ended June 30, 2025.<br>Data as of 6/30/2025<br>CRE - Owner Occupied<br>16.7%<br>CRE - Non-owner<br>Occupied<br>40.6%<br>Multifamily<br>4.9%<br>Commercial<br>2.3%<br>Residential Real Estate<br>24.5%<br>Consumer<br>1.3%<br>CRE & Land<br>Development<br>Construction<br>4.1%<br>Residential Construction<br>5.6% |
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| 16<br>Strength in CRE Loan Portfolio<br>(1) Loan-to-value is determined at origination date and is divided by principal balance as of June 30, 2025.<br>(2) The debt service coverage ratio (“DSCR”) is calculated from the primary source of repayment for the loan. Owner occupied DSCR’s<br>are derived from cash flows from the owner occupant’s business, property and their guarantors, while non-owner occupied DSCR’s are<br>derived from the net operating income of the property.<br>(3) Principal balance excludes deferred fees or costs. Dollars in thousands.<br>(4) Other asset class is primarily comprised of schools, daycares and country clubs.<br>Data as of 6/30/2025.<br>Asset Class<br>Weighted<br>Average Loan-to-Value(1)<br>Weighted<br>Average Debt<br>Service<br>Coverage<br>Ratio(2)<br>Number of<br>Total Loans Principal Balance(3)<br>Weighted<br>Average Loan-to-Value(1)<br>Weighted<br>Average Debt<br>Service<br>Coverage<br>Ratio(2)<br>Number of<br>Total Loans Principal Balance(3)<br>Warehouse & Industrial 49.4% 3.3x 54 $ 68,163 50.4% 2.2x 45 $ 114,220<br>Office 56.8% 3.6x 135 82,418 45.3% 1.8x 56 106,136<br>Retail 58.6% 2.8x 42 74,145 50.1% 1.8x 147 453,032<br>Church 26.3% 2.6x 17 28,132 73.3% 1.0x 2 5,789<br>Hotel/Motel - - - - 52.0% 1.5x 11 82,656<br>Other(4) 36.6% 3.4x 38 67,203 45.2% 2.2x 8 15,758<br>Total 286 320,061 269 777,591<br>CRE - Owner Occupied CRE - Non-owner Occupied |
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| 17<br>Deposit Composition<br> Maintained a Balanced Funding Composition<br> Increased Non-Interest Bearing Demand Deposits from 22.8% to 23.1% of Total<br>Deposits.<br> Increased Interest Bearing Demand Deposits from 37.3% to 38.2% of Total<br>Deposits.<br>June 30, 2024 June 30, 2025<br>(Dollars in thousands) $ Amount % of Total $ Amount % of Total<br>Non-Interest Bearing Demand $ 437,169 22.8% $ 438,628 23.1%<br>Interest Bearing, Non-Maturing $ 713,835 37.3% $ 724,196 38.2%<br>Customer CDs $ 464,088 24.3% $ 431,858 22.8%<br>Total Core Deposits $ 1,615,092 84.4% $ 1,594,682 84.1%<br>Wholesale $ 297,748 15.6% $ 302,211 15.9%<br>Total Deposits $ 1,912,840 100.0% $ 1,896,893 100.0% |
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| 18<br>Bond Portfolio<br>As of June 30, 2025, 95% of our bond portfolio<br>carried the implied guarantee of the United<br>States government or one of its agencies.<br>As of June 30, 2025, the available-for-sale portfolio had a<br>weighted average life of 3.1 years and the held-to-maturity portfolio had a weighted average life of 5.6 years.<br>(Dollars in thousands)<br>Available-for-sale<br>U.S. Treasuries $ 20,215 $ 19,814<br>U.S. government and federal agencies 6,983 6,751<br>Corporate bonds 3,000 2,777<br>Collateralized mortgage obligations 35,339 29,560<br>Municipal 1,648 1,443<br>Mortgage-backed 69,141 65,153<br>Total Available-for-sale Securities $ 136,326 125,498<br>Held-to-maturity<br>U.S. Treasuries $ 6,002 $ 5,592<br>U.S. government and federal agencies 35,332 31,738<br>Collateralized mortgage obligations 17,013 13,593<br>Municipal 6,032 5,160<br>Mortgage-backed 25,885 21,365<br>Total Held-to-maturity Securities $ 90,264 $ 77,448<br>Total Debt Securities $ 226,590 $ 202,946<br>Debt Securities Portfolio as of June 30, 2025<br>Amortized<br>Cost<br>Estimated<br>Fair Value<br>U.S Treasuries and Gov't<br>Agencies, 31.5%<br>Mortgage-Backed and<br>Asset-Backed, 63.9%<br>Municipal, 3.3%<br>Corporate bonds, 1.3%<br>Portfolio Mix - Amortized Cost |
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| 0.80%<br>0.95%<br>1.08% 1.06%<br>1.25%<br>1.40%<br>0.22%<br>0.76% 0.72%<br>0.89%<br>2017 2018 2019 2020 2021 2022 2023 2024 1H24 1H25<br>19<br>Performance Measures<br>Diluted Earnings Per Share (EPS) Return on Average Equity (ROAE)<br>1H figures reflect amounts for the first six months of each year.<br>(1) Returns during 2023 were negatively impacted by various restructuring measures as discussed in the Company's 10-K filed on March 20, 2024.<br>(2) Annualized, as of June 30.<br>Return on Average Assets (ROAA)<br>(1) (1)<br>(1)<br>$0.66<br>$0.89<br>$1.17<br>$1.35<br>$1.83<br>$2.25<br>$0.36<br>$1.20<br>$0.57 $0.69<br>2017 2018 2019 2020 2021 2022 2023 2024 1H24 1H25<br>7.14%<br>8.98%<br>10.41%<br>10.49%<br>12.90%<br>15.18%<br>2.32%<br>7.16% 6.95%<br>7.91%<br>2017 2018 2019 2020 2021 2022 2023 2024 1H24 1H25 (2) (2)<br>(2) (2) |
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| $11,979 $12,027 $11,744 $12,081<br>$13,156<br>$14,066 $14,097<br>$14,926<br>2.08%<br>2.12%<br>2.11%<br>2.19%<br>2.30%<br>2.52%<br>2.58%<br>2.69%<br>1.80%<br>2.00%<br>2.20%<br>2.40%<br>2.60%<br>2.80%<br>3.00%<br> $(1,000)<br> $1,000<br> $3,000<br> $5,000<br> $7,000<br> $9,000<br> $11,000<br> $13,000<br> $15,000<br>Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25<br>Net Interest Income and Margin Trend<br>Net Interest Income Net Interest Margin<br>20<br>Net Interest Margin Expansion<br>Net Interest Margin/ Net Interest Income Growth<br> Net interest margin expanded during the last five consecutive quarters and grew<br>61 basis points from the third quarter of 2023.<br> Since the third quarter of 2023, 49 basis point increase in the yield on interest-earnings assets outpaced three basis point decrease in the rate on interest-bearing liabilities.<br> Net interest income grew by $2.9 million to $14.9 million during the quarter ended<br>June 30, 2025, as compared $12.1 million in the prior year quarter.<br>($ in thousands)<br>4.54% 4.68% 4.83% 4.85% 4.97% 5.01% 4.99% 5.03%<br>3.41%<br>3.64% 3.81% 3.81% 3.86%<br>3.62% 3.48% 3.38%<br>0.00%<br>1.00%<br>2.00%<br>3.00%<br>4.00%<br>5.00%<br>6.00%<br>Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25<br>Yield and Cost Trends<br>Total interest-earning assets Total interest-bearing liabilities |
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| 21<br>Prudent Expense Management<br>(1) FDIC – All banks' data is sourced from the FDIC’s Quarterly Banking Profile as of March 31, 2025.<br>(2) Annualized, data as of June 30, 2025.<br> Stable non-interest expense over the preceding three<br>years as a result of management’s prudent cost control.<br> As of June 30, 2025 the average bank non-interest<br>expense to average assets was 2.5%(1)<br>. Our non-interest<br>expense to average assets as of June 30, 2025 was 1.5%<br>or 56% of the average bank non-interest expense ratio.<br> Our expense base is approximately $22 million lower than<br>the level implied by the FDIC average.<br>(2)<br>Non-Interest Expense<br>($ in thousands) Year Ended December 31,<br>2022 2023 2024 1H 24 1H 25 % Change<br>Salaries and employee benefits $ 20,190 $ 19,436 $ 19,240 $ 9,685 $ 10,277 6.1%<br>Occupancy expense of premises 1,893 1,811 1,760 899 814 -9.5%<br>Furniture and equipment expenses 1,325 1,178 1,220 598 630 5.4%<br>Other operating expenses 8,466 8,390 9,589 4,651 4,840 4.1%<br>Total Non-interest Expense $ 31,874 $ 30,815 $ 31,809 $ 15,833 $ 16,561 4.6%<br>2.2% 2.2%<br>2.0%<br>1.7%<br>1.4%<br>1.3% 1.3%<br>1.4%<br>1.5%<br>0.0%<br>0.5%<br>1.0%<br>1.5%<br>2.0%<br>2.5%<br>3.0%<br>2017 2018 2019 2020 2021 2022 2023 2024 2025<br>Non-Interest Expense to Average Assets |
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| 22<br>Franchise Overview<br>Financial Highlights<br>Credit & Asset Quality<br>Capital & Liquidity<br>Appendices |
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| 23<br>Decreasing Concentration<br>• $1.1 billion in CRE loans, net of unearned fees as of 6/30/2025.<br>• 99.7% of CRE portfolio is within the DC MSA as of 6/30/2025.<br>• No equity capital issuance since November 2013.<br>Acquisition, Development & Construction Loans<br>as a percentage of Total Risk-Based Capital<br>Commercial Real Estate (Investor) Loans<br>as a percentage of Total Risk-Based Capital<br>CRE Investor Portfolio has grown 18.8% over the past 36 months; below 50% regulatory threshold.<br>$22.5MM of subordinated<br>148% debt became Bank capital<br>120%<br>126%126%130%<br>121%<br>111%109%<br>94%<br>84%<br>73%<br>62% 64%<br>53% 55% 58% 61%<br>407%<br>379%<br>411%413%<br>403%<br>384%<br>367%<br>365%<br>340%<br>335%<br>338%<br>319%<br>338%<br>328%<br>336%<br>342%346% |
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| 24<br>Disciplined Credit Culture<br>Asset Quality Capital Allowance for Credit Losses<br>• Historically, the Bank has exhibited<br>excellent loan quality with low levels of<br>classified loans<br>• No loans 30+ days PD, non-accrual<br>loans, OREO, net charge-offs, or<br>substandard loans.<br>• “Well-Capitalized” under Basel III<br>• Stress testing on a quarterly basis<br>• Holding company provides capital<br>alternatives<br>• Conservative reserve methodology<br>• ACL of 1.01% of loans<br>Diversification Market Analysis Stress Testing<br>• CRE portfolio is diversified among retail,<br>multifamily, restaurants, shopping<br>centers, churches, warehouses and other<br>loan types<br>• ADC and CRE concentrations have been<br>reduced from 148% and 407%,<br>respectively, at 9/30/2017 (post-subordinated debt) to 61% and 346%.<br>• Bank receives market analysis, both on<br>a national and local basis from a<br>variety of sources<br>• Bank utilizes a rigorous third-party loan<br>review program<br>• Quarterly stress testing of LTV and debt<br>service coverage ratios<br>• Targeted stress testing completed over<br>CRE portfolio to assess changes in LTV<br>when stressing collateral values and DSCR<br>changes upon future repricing.<br>Credit Selection Board Oversight Leverage Technology<br>• RMs focus on experienced business<br>owners with financial capacity<br>• Relatively low individual officer discretionary<br>loan authority levels; committee approval<br>• Concentration and monitoring<br>information provided to the Board at<br>least quarterly<br>• Utilize bank-specific CRM application to<br>increase efficiency and optimize loan<br>process management<br>• Utilize leading construction finance<br>management software<br>Unless indicated otherwise, data as of 6/30/2025. |
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| 25<br>Credit Quality<br>Non-Accruing Assets¹ / Assets (%) Net Charge-Offs / Loans (%)<br>(1) Non-accruing assets include nonaccrual loans and leases, and foreclosed or repossessed assets.<br>(2) Data as of June 30, 2025.<br>(3) As of March 31, 2025, the most recent data available from the FDIC.<br>0.32%<br>0.01%0.09%<br>0.03% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%<br>0.00%<br>0.20%<br>0.40%<br>0.60%<br>0.80%<br>1.00%<br>2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025<br>0.32%<br>0.07%<br>0.03% 0.01% 0.00% 0.00% 0.01% 0.00% 0.00% 0.00% 0.00%<br>0.00%<br>0.20%<br>0.40%<br>0.60%<br>0.80%<br>1.00%<br>2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 (2) (2)<br> The Bank had no non-accrual loans, other real estate owned, or loans<br>30 or more days past due as of June 30, 2025.<br> The Bank has not had a net charge off since 2Q 2021.<br> As of June 30, 2025, the most recent FDIC peer loans and leases 30<br>days or more past due or in nonaccrual status level of 1.32% would<br>equate to approximately $30 million of non-accruing assets.<br>(3) |
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| 26<br>Franchise Overview<br>Financial Highlights<br>Credit & Asset Quality<br>Capital & Liquidity<br>Appendices |
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| 27<br>Strong Capital Ratios<br>Highlights<br>• The Bank’s capital ratios at<br>June 30, 2025 stayed relatively<br>constant when compared to<br>June 30, 2024. We remain well<br>above regulatory thresholds for<br>well-capitalized banks.<br>• The Bank would continue to<br>remain meaningfully above<br>regulatory thresholds for well-capitalized banks at June 30,<br>2025 in the hypothetical<br>scenario where the entire bond<br>portfolio was sold at fair market<br>value and the losses realized<br>(Non-GAAP).<br>• Book value per share has<br>increased 7.8% from the<br>second quarter of 2024 to the<br>second quarter of 2025. When<br>factoring in the $0.30 cash<br>dividend per share declared in<br>the second quarter of 2025, the<br>book value per share return<br>was 9.6%.<br>$16.54<br>$17.07<br>$17.28<br>$17.72 $17.83<br> $15.00<br> $16.00<br> $17.00<br> $18.00<br> $19.00<br> $20.00<br>Q2'24 Q3'24 Q4'24 Q1'25 Q2'25<br>Book Value per Share<br>5.0<br>12.2 12.4 12.8<br>6.5<br>15.4 15.2 15.3<br>8.0<br>15.4 15.2 15.3<br>10.0<br>16.4 16.2 16.3<br>0.0<br>2.0<br>4.0<br>6.0<br>8.0<br>10.0<br>12.0<br>14.0<br>16.0<br>18.0<br>Well-Capitalized<br>Threshold<br>June 30, 2024 December 31, 2024 June 30, 2025<br>Ratios (%)<br>Bank Regulatory Capital Ratios (As Reported)<br>Leverage ratio Common equity tier 1 ratio<br>Tier 1 risk-based capital ratio Total risk-based capital ratio |
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| 28<br>Sources of Liquidity<br>• In addition to available secured borrowing capacity, the Bank had available federal<br>funds lines of $93.5 million at June 30, 2025.<br>• Stress testing is performed quarterly with assumptions inclusive of both systemic and<br>idiosyncratic risks.<br>As of June 30, 2025<br>(Dollars in millions)<br>Total<br>Available<br>Amount<br>Used<br>Net<br>Availability<br>Internal Sources:<br>Cash $ 116.9 $ - $ 116.9<br>Unencumbered Securities, at Fair Value 108.6 - 108.6<br>External Sources:<br>Federal Home Loan Bank 492.2 76.0 416.2<br>Federal Reserve Bank - BIC 113.9 - 113.9<br>Total Liquidity $ 831.6 $ 76.0 $ 755.6<br>$ 656.0<br>115%<br>Uninsured or Unsecured Deposits<br>Liquidity / Uninsured or Unsecured Deposits |
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| Capital Management: Share Repurchases<br>29<br> On August 19, 2025, the Company announced an<br>extension of the share repurchase authorization of<br>700,000 shares.<br> Through August 19, 2025, the Company had<br>repurchased over 90,000 shares. The aggregate<br>repurchase activity was accretive to the Company’s<br>book value per share.<br> The Company may selectively continue<br>repurchasing shares subject to market conditions,<br>securities laws, and capital management<br>priorities, among other decision criteria. |
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| 30<br>Franchise Overview<br>Financial Highlights<br>Credit & Asset Quality<br>Capital & Liquidity<br>Appendices |
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| 31<br>Historical Balance Sheet<br>As of June 30,<br>($ in thousands) 2020 2021 2022 2023 2024 2025<br>ASSETS:<br>Cash and Due from Banks $ 8,228 $ 2,920 $ 6,583 $ 7,424 $ 5,945 $ 9,415<br>Fed Funds Sold - - - - - -<br>Deposits at Financial Institutions 130,229 102,879 55,016 91,581 116,524 107,511<br> Cash and Cash Equivalents $ 138,457 $ 105,799 $ 61,599 $ 99,005 $ 122,469 $ 116,926<br>Available for Sale Securities 151,900 239,300 357,576 169,993 130,257 125,498<br>Held to Maturity Securities - 105,509 99,415 95,505 92,009 90,264<br>Other Securities 6,643 6,820 6,540 7,804 10,466 10,733<br> Total Cash & Securities $ 297,000 $ 457,428 $ 525,130 $ 372,307 $ 355,201 $ 343,421<br>Gross Loans Held for Investment (ex-PPP loans) 1,448,113 1,598,766 1,789,376 1,859,836 1,872,173 1,916,915<br>PPP Loans 114,411 67,703 132 131 - -<br>Allowance for Loan Credit Losses 17,017 20,032 20,208 19,543 18,715 19,298<br> Total Net Loans $ 1,545,507 $ 1,646,437 $ 1,769,300 $ 1,840,424 $ 1,853,458 $ 1,897,617<br> Real Estate Owned and Held for Investment - - - - - -<br> Fixed Assets 2,422 1,620 1,219 1,281 1,318 1,519<br> Interest Receivable 5,308 4,943 5,531 6,110 5,996 5,844<br> Bank-owned Life Insurance 20,587 20,998 21,170 - - -<br> Other Assets 14,672 17,883 25,885 22,427 18,974 19,552<br>Total Other Assets 42,989 45,444 53,805 29,818 26,288 26,915<br> Total Assets $ 1,885,496 $ 2,149,309 $ 2,348,235 $ 2,242,549 $ 2,234,947 $ 2,267,953<br>LIABILITIES:<br>Total Deposits $ 1,640,120 $ 1,881,553 $ 2,067,740 $ 1,906,600 $ 1,892,415 $ 1,896,893<br>FHLB Borrowings 22,000 18,000 - - 56,000 56,000<br>Fed Funds Purchased - - 25,500 10,000 - 16,500<br>Federal Reserve Bank borrowings - - - 54,000 - -<br>Repurchase Agreements - - - - - -<br>Total Subordinated Debt 24,679 24,728 24,624 24,708 24,791 24,833<br> Total Debt $ 46,679 $ 42,728 $ 50,124 $ 88,708 $ 80,791 $ 97,333<br>Total Other Liabilities 12,616 16,558 17,571 17,327 15,127 19,995<br> Total Liabilities $ 1,699,415 $ 1,940,839 $ 2,135,435 $ 2,012,635 $ 1,988,333 $ 2,014,221<br>EQUITY:<br>Common Equity $ 182,295 $ 208,870 $ 241,497 $ 242,165 $ 257,266 $ 262,221<br>Accumulated Other Comprehensive Income (Loss) 3,786 (400) (28,697) (12,251) (10,652) (8,489)<br> Total Liabilities & Equity $ 1,885,496 $ 2,149,309 $ 2,348,235 $ 2,242,549 $ 2,234,947 $ 2,267,953<br>As of December 31, |
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| 32<br>Historical Income Statement<br>Six Months<br>Ended<br>($ in thousands) 2020 2021 2022 2023 2024 June 30, 2025<br>Interest and dividend income $ 72,446 $ 74,119 $ 84,066 $ 100,770 $ 110,133 $ 55,147<br>Interest expense 15,607 8,211 13,645 50,286 59,086 26,124<br>Net interest income $ 56,839 $ 65,908 $ 70,421 $ 50,484 $ 51,047 $ 29,023<br>Provision for (recovery of) credit losses 6,217 3,105 175 (3,252) (370) 707<br>Net interest income after provision for (recovery of) credit<br>losses $ 50,622 $ 62,803 $ 70,246 $ 53,736 $ 51,417 $ 28,316<br>Service charges on deposit accounts $ 237 $ 262 $ 324 $ 330 $ 349 $ 168<br>Bank owned life insurance 469 411 544 224 - -<br>Other service charges and fees 400 477 656 838 655 294<br>Gains (Losses) on securities 309 10 - (17,316) - -<br>Insurance commissions 55 284 382 386 416 246<br>Gain on sale of government guaranteed loans - - - 131 520 97<br>Non-qualified deferred compensation MTM 96 194 (354) 317 236 206<br>Other operating income 47 81 139 150 95 1<br>Total non-interest income $ 1,613 $ 1,719 $ 1,691 $ (14,940) $ 2,271 $ 1,012<br>Salaries and employee benefits $ 18,167 $ 20,411 $ 20,190 $ 19,436 $ 19,240 $ 10,277<br>Occupancy expense of premises 1,950 1,985 1,893 1,811 1,760 814<br>Furniture and equipment expenses 1,626 1,436 1,325 1,178 1,220 630<br>Other operating expenses 7,420 8,430 8,466 8,390 9,589 4,840<br>Total non-interest expenses $ 29,163 $ 32,262 $ 31,874 $ 30,815 $ 31,809 $ 16,561<br>Net Income before income taxes 23,072 32,260 40,063 7,981 21,879 12,767<br>Income tax expense 4,546 6,799 8,260 2,823 4,758 2,854<br>Net income $ 18,526 $ 25,461 $ 31,803 $ 5,158 $ 17,121 $ 9,913<br>For the Year Ended December 31, |
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| 33<br>Reconciliation of Non-GAAP Disclosures<br>John Marshall Bancorp, Inc.<br>Reconciliation of Certain Non-GAAP Financial Measures (unaudited)<br>(Dollar amounts in thousands, except per share amounts)<br>For the Twelve<br>Months Ended<br> December 31, 2023<br>Non-interest loss (GAAP) $ (14,940)<br>Adjustment: Pre-tax loss recognized on sale of available-for-sale securities 17,114<br>Core non-interest income (Non-GAAP) $ 2,174<br>Income before taxes (GAAP) $ 7,981<br>Adjustment: Pre-tax loss recognized on sale of available-for-sale securities 17,114<br>Core income before taxes (Non-GAAP) $ 25,095<br>Income tax expense (GAAP) $ 2,823<br>Adjustment: Tax and 10% modified endowment contract penalty on early surrender of BOLI policies (1,101)<br>Adjustment: Tax benefit of loss recognized on sale of available-for-sale securities 3,594<br>Core income tax expense (Non-GAAP)(1) $ 5,316<br>Net income (GAAP) $ 5,158<br>Core net income (Non-GAAP)(2) $ 19,779<br>Earnings per share - basic (GAAP) $ 0.36<br>Core earnings per share - basic (Non-GAAP)(3) $ 1.40<br>Earnings per share - diluted (GAAP) $ 0.36<br>Core earnings per share - diluted (Non-GAAP)(3) $ 1.39<br>Return on average assets (GAAP) 0.22 %<br>Core return on average assets (Non-GAAP)(4) 0.85 %<br>Return on average equity (GAAP) 2.32 %<br>Core return on average equity (Non-GAAP)(5) 8.91 %<br>Efficiency ratio (GAAP) 86.7 %<br>Core efficiency ratio (Non-GAAP)(6) 58.5 %<br>(1) Includes tax benefit (expense) calculated using the federal statutory tax rate of 21%.<br>(2) Core net income reflects net income adjusted for the non-recurring tax effected loss recognized on the sale of available-for-sale securities in<br>and non-recurring tax expense associated with the surrender of the Company’s BOLI policies in July 2023. It is calculated by subtracting core<br>income tax expense from core income before taxes for the periods presented.<br>(3) Core earnings per share – basic and core earnings per share – diluted is calculated by dividing core net income by basic weighted average<br>shares outstanding and diluted weighted average shares outstanding, respectively, for the period presented.<br>(4) Core return on average assets is calculated by dividing core net income by average assets for the period presented.<br>(5) Core return on average equity is calculated by dividing core net income by average equity for the period presented.<br>(6) Core efficiency ratio is calculated by dividing non-interest expense by the sum of core non-interest income and net interest income for the<br>period presented. |
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| 34<br>Reconciliation of Non-GAAP Disclosures |
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| 35<br>Reconciliation of Non-GAAP Disclosures |
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