John Marshall Bancorp, Inc. Reports 10th Consecutive Quarter of Record Earnings

July 21, 2021 9:15 AM EDT

Get inside Wall Street with StreetInsider Premium. Claim your 1-week free trial here.

Strong Momentum and Growth Continue

RESTON, VA--(BUSINESS WIRE)-- John Marshall Bancorp, Inc. (OTCQB: JMSB) (the “Company”), parent company of John Marshall Bank (the “Bank”), reported its financial results for the three and six months ended June 30, 2021.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210721005578/en/

Net Income (in thousands) (Graphic: Business Wire)

Net Income (in thousands) (Graphic: Business Wire)

Selected Highlights

  • Tenth Consecutive Quarter of Record Earnings – The Company reported net income of $6.1 million for the three months ended June 30, 2021, a 33.3% increase over the $4.6 million reported for the three months ended June 30, 2020. The Company reported net income of $11.2 million for the six months ended June 30, 2021, a 23.1% increase over the $9.1 million reported for the six months ended June 30, 2020. Earnings per diluted share for the three months ended June 30, 2021 were $0.44, a 33.3% increase over the $0.33 reported for the three months ended June 30, 2020. Earnings per diluted share for the six months ended June 30, 2021 were $0.80, a 21.2% increase over the $0.66 reported for the six months ended June 30, 2020. Return on average assets was 1.20% and return on average equity was 12.64% for the three months ended June 30, 2021. Return on average assets was 1.13% and return on average equity was 11.78% for the six months ended June 30, 2021.
  • Strong Growth – Year-over-year total assets increased 14.6% or $263.3 million to $2.07 billion at June 30, 2021. Gross loans net of unearned income increased $49.5 million or 3.3% from June 30, 2020 to June 30, 2021. Gross loans net of unearned income and Paycheck Protection Program (“PPP”) loans grew $115.4 million or 8.4% from June 30, 2020 to June 30, 2021. Total deposits grew $253.4 million or 16.2% from June 30, 2020 to June 30, 2021. Non-interest bearing demand deposits grew 20.1% or $80.0 million from June 30, 2020 to June 30, 2021.
  • Asset Quality Remains Pristine – For the seventh consecutive quarter, the Company had no non-performing loans and no other real estate owned at quarter-end June 30, 2021. As of June 30, 2021, the Company had no loans more than 15 days past due. The Company had $90 thousand and $91 thousand in charge-offs during the three months and six months ended June 30, 2021, respectively, compared to no charge-offs during the same periods in 2020. Troubled debt restructurings were $473 thousand at June 30, 2021, a decrease of $160 thousand, from $633 thousand at June 30, 2020. The Company had no COVID modifications as of June 30, 2021. The Company believes its allowance for loan losses is appropriate for the inherent risks and uncertainties associated with the portfolio.
  • Net Interest Margin Increased from 2Q 2020 and 1Q 2021 – The net interest margin was 3.31% for the three months ended June 30, 2021, an increase of 4 basis points from the three months ended June 30, 2020. On a linked quarterly basis, net interest margin, excluding PPP loans, increased 7 basis points from 3.25% for the quarter ended March 31, 2021 to 3.32% for the quarter ended June 30, 2021.

Chris Bergstrom, President and Chief Executive Officer, commented, “Despite the economic headwinds we have faced over the course of the past year, John Marshall continues to produce record earnings while investing for our future growth. We have a well-capitalized balance sheet, ample liquidity, excellent asset quality and a strong loan pipeline. Our net interest margin has been stable and our ratio of overhead expense to average assets compares favorably to the industry. We are well-positioned as the economic outlook continues to improve.”

Balance Sheet Review

Assets

Total assets were $2.07 billion at June 30, 2021, $1.89 billion at December 31, 2020 and $1.80 billion at June 30, 2020. Year-over-year asset growth from June 30, 2020 to June 30, 2021 was $263.3 million or 14.6%. Year-to-date asset growth from December 31, 2020 to June 30, 2021 was $180.4 million or 19.3% annualized. During the second quarter of 2021, assets increased $55.9 million or 11.2% annualized.

Loans

Gross loans were $1.57 billion at June 30, 2021, $1.56 billion at December 31, 2020 and $1.52 billion at June 30, 2020. Gross loans net of unearned income increased $49.5 million or 3.3% from June 30, 2020 to June 30, 2021. Excluding PPP loans, gross loans net of unearned income increased $115.4 million or 8.4% from June 30, 2020 to June 30, 2021. Gross loans net of unearned income grew $4.6 million or 0.6% annualized, during the six months ended June 30, 2021 and decreased $38.7 million during the three months ended June 30, 2021.

Excluding the impact of PPP loans, gross loans net of unearned income grew $36.8 million, 5.1% annualized, during the six months ended June 30, 2021 and decreased $4.2 million during the three months ended June 30, 2021. The decrease in the non-PPP loan portfolio during the quarter was primarily due to an unusually high volume of payoff and pay down activity. During the second quarter of 2021, the Bank experienced, in aggregate, $159.8 million of payoffs and pay downs or $64.4 million more than the trailing nine quarter average payoff and pay down volume of $95.4 million. The unusually high level of payoffs and pay downs masked the Bank’s second largest historical quarterly gross loan production, excluding PPP loans, of $156.1 million during the second quarter of 2021. Management believes the second quarter payoff and pay down activity to be anomalous. The Bank’s loan pipeline remains consistent with the trailing nine quarter average.

Investment Securities

The Company’s portfolio of investments in fixed income securities was $299.5 million at June 30, 2021, $151.9 million at December 31, 2020 and $127.7 million at June 30, 2020. Year-over-year bond growth from June 30, 2020 to June 30, 2021 was $171.8 million or 134.5%. The year-over-year and year-to-date increase in fixed income securities was funded by PPP loan payoffs and deposit growth.

Interest-Bearing Deposits in Banks

Interest-bearing deposits in banks were $158.7 million at June 30, 2021, $130.2 million at December 31, 2020 and $109.9 million at June 30, 2020. The Company expects to continue to reinvest these funds in higher yielding assets as opportunities and liquidity management allow.

Deposits

Total deposits were $1.82 billion at June 30, 2021, $1.64 billion at December 31, 2020 and $1.56 billion at June 30, 2020. Year-over-year deposit growth from June 30, 2020 to June 30, 2021 was $253.4 million or 16.2%. Deposits grew $174.9 million or 21.5% annualized during the six months ended June 30, 2021 and $53.6 million or 12.2% annualized during the three months ended June 30, 2021.

Non-interest bearing demand deposits were $478.7 million at June 30, 2021, $362.6 million at December 31, 2020 and $398.7 million at June 30, 2020. Year-over-year non-interest bearing demand deposit growth from June 30, 2020 to June 30, 2021 was $80.0 million or 20.1%. During the six months ended June 30, 2021, non-interest bearing deposits grew $116.1 million or 64.6% annualized, and $58.9 million or 56.3% annualized during the three months ended June 30, 2021. Non-interest bearing demand deposits represented 26.4% of total deposits at June 30, 2021, 22.1% of total deposits at December 31, 2020 and 25.5% at June 30, 2020.

Core customer funding (which includes reciprocal IntraFi Demand®, IntraFi Money Market® and IntraFi CD® deposits maintained by customers) was $1.56 billion at June 30, 2021, $1.40 billion at December 31, 2020 and $1.37 billion at June 30, 2020. Year-over-year core customer funding sources increased by $193.9 million or 14.2% from June 30, 2020 to June 30, 2021. Non-maturing deposits were 63.1% of total deposits as of June 30, 2021, 60.3% as of December 31, 2020 and 61.4% as of June 30, 2020.

IntraFi CD® certificates of deposits (formerly known as Certificate of Deposit Account Registry Service [CDARS]) were $60.8 million at June 30, 2021, $39.7 million at December 31, 2020 and $37.3 million at June 30, 2020. Year-over-year, IntraFi® certificates of deposits increased $23.4 million from June 30, 2020 to June 30, 2021.

Certificates of deposits were $356.7 million at June 30, 2021, $374.4 million at December 31, 2020 and $372.4 million at June 30, 2020. Year-over-year certificates of deposit decreased $15.7 million from June 30, 2020 to June 30, 2021. QwickRate® certificates of deposit were $31.5 million at June 30, 2021, $29.8 million at December 31, 2020 and $31.8 million at June 30, 2020. Year-over-year QwickRate® certificates of deposit decreased $283 thousand from June 30, 2020 to June 30, 2021. Brokered deposits were $220.4 million at June 30, 2021, $207.6 million at December 31, 2020 and $160.6 million at June 30, 2020. Brokered deposits increased $3.5 million from March 31, 2021 to June 30, 2021. Management continues to utilize wholesale funding in order to selectively realize lower funding costs and achieve certain asset/liability objectives.

Borrowings

Borrowings, consisting of Federal Home Loan Bank of Atlanta (“FHLB”) advances were $18.0 million at June 30, 2021, $22.0 million at December 31, 2020 and $26.0 million at June 30, 2020. FHLB advances decreased $8.0 million or 30.8% from June 30, 2020 to June 30, 2021 and decreased $4.0 million or 18.2% from December 31, 2020 to June 30, 2021. Management continues to retire FHLB advances as they mature to increase contingent funding sources. As of June 30, 2021, the Bank had approximately $283 million remaining in secured borrowing capacity with the FHLB, an increase of $41 million over the $242 million of FHLB secured borrowing capacity as of June 30, 2020.

The Company had subordinated notes with a balance of $24.7 million at June 30, 2021, December 31, 2020 and June 30, 2020.

Shareholders’ Equity and Capital Levels

Total shareholders’ equity was $195.2 million at June 30, 2021, $186.1 million at December 31, 2020 and $176.3 million at June 30, 2020. Year-over-year shareholders’ equity increased by $18.9 million or 10.7%. Accumulated other comprehensive income declined from $3.8 million at June 30, 2020 to $1.3 million at June 30, 2021. An increase in market yields for investments with maturities three years or longer has reduced the Company’s unrealized gains in its bond portfolio, as bond prices and yields vary inversely.

Total common shares outstanding increased from 13,573,601, including 47,403 shares relating to unvested stock awards, at June 30, 2020, to 13,639,173, including 60,995 shares relating to unvested stock awards, at June 30, 2021. The year-over-year increase in shares outstanding was the result of exercises of share options and additional grants of unvested stock awards.

The Bank’s capital ratios remain well above regulatory minimums for well-capitalized banks. As of June 30, 2021, the Bank’s total risk-based capital ratio was 15.0%, compared to 14.4% at June 30, 2020.

Asset Quality

As of June 30, 2021, the Company had no non-accrual loans, no loans more than 15 days past due and no other real estate owned.

Troubled debt restructurings were $473 thousand at June 30, 2021, a decrease of $160 thousand, from $633 thousand at June 30, 2020. All troubled debt restructurings were performing in accordance with their modified terms as of June 30, 2021 and June 30, 2020.

The Company did not have any loans with COVID loan modifications as of June 30, 2021.

Income Statement Review

Net Interest Income

Net interest income was $16.5 million for the three months ended June 30, 2021, an increase of $2.6 million or 18.9% from $13.9 million for the three months ended June 30, 2020. The net interest margin was 3.31% for the three months ended June 30, 2021 as compared to 3.27% for the three months ended June 30, 2020.

Average loans net of unearned income increased $134.5 million or 9.2% compared to the three months ended June 30, 2020, with a 32 basis point decline in yield. Average securities increased $118.3 million or 85.5% compared to the three months ended June 30, 2020, with a 79 basis point decline in yield. Average interest-bearing deposits in other banks increased $35.1 million or 34.2% compared to the three months ended June 30, 2020, with a 2 basis point decline in yield. The average yield on interest-earning assets decreased 51 basis points from 4.25% for the three months ended June 30, 2020 to 3.74% for the three months ended June 30, 2021, primarily due to the decline in rates since the end of the second quarter of 2020.

The average cost of interest-bearing liabilities declined 81 basis points or 56.6% from 1.43% for the three months ended June 30, 2020 to 0.62% for the three months ended June 30, 2021. The average cost of interest-bearing deposits decreased 81 basis points when comparing the quarter ended June 30, 2020 to the quarter ended June 30, 2021. The average cost of other borrowed funds decreased 60 basis points when comparing the quarter ended June 30, 2020 to the quarter ended June 30, 2021. The declines in funding costs were also primarily due to the decline in rates since the end of the second quarter of 2020.

Net interest margin, excluding PPP loans, was 3.32% for the three months ended June 30, 2021 and for the same period in 2020. The yield on interest-earning assets would have been 3.78% and the yield on loans would have been 4.47% for the three months ended June 30, 2021, if PPP loans were excluded. The increases in yields during the quarter are primarily related to higher fee income as a result of the elevated payoff activity within the commercial and construction and development loan portfolios.

Net interest income was $32.8 million for the six months ended June 30, 2021, an increase of $6.1 million or 22.7% from $26.7 million for the six months ended June 30, 2020. The net interest margin was 3.37% for the six months ended June 30, 2021 as compared to 3.30% for the six months ended June 30, 2020.

Average loans net of unearned income increased $195.0 million or 14.0% compared to the six months ended June 30, 2020, with a 39 basis point decline in yield. Average securities increased $81.4 million or 59.4% compared to the six months ended June 30, 2020, with a 76 basis point decline in yield. Average interest-bearing deposits in other banks increased $54.2 million or 55.2% compared to the six months ended June 30, 2020, with a 57 basis point decline in yield. The average yield on interest-earning assets decreased 58 basis points from 4.43% for the six months ended June 30, 2020 to 3.85% for the six months ended June 30, 2021, primarily due to the decline in rates since the end of the second quarter of 2020.

The average cost of interest-bearing liabilities declined 92 basis points or 57.5% from 1.60% for the six months ended June 30, 2020 to 0.68% for the six months ended June 30, 2021. The average cost of interest-bearing deposits decreased 92 basis points when comparing the six months ended June 30, 2020 to same period in 2021. The average cost of other borrowed funds decreased 68 basis points when comparing the six months ended June 30, 2020 to the same period in 2021. The declines in funding costs were also primarily due to the decline in rates since the end of the second quarter of 2020.

Net interest margin, excluding PPP loans, was 3.29% for the six months ended June 30, 2021. The yield on interest-earning assets would have been 3.79% and the yield on loans would have been 4.47% for the six months ended June 30, 2021, if PPP loans were excluded.

On a linked quarterly basis, net interest margin, excluding PPP loans, increased from 3.25% for the quarter ended March 31, 2021 to 3.32% for the quarter ended June 30, 2021. The average yield on interest-earning assets, excluding PPP loans, decreased 3 basis points from 3.81% for the three months ended March 31, 2021 to 3.78% for the three months ended June 30, 2021 and yield on loans remained consistent at 4.47%. The average cost of interest-bearing deposits decreased 12 basis points from 0.64% for the three months ended March 31, 2021 to 0.52% for the three months ended June 30, 2021. The average cost of other borrowed funds decreased 2 basis points from 0.69% for the three months ended March 31, 2021 to 0.67% for the three months ended June 30, 2021.

Provision for Loan Losses

The Company had a $90 thousand provision for loan losses for the three months ended June 30, 2021, compared to $1.5 million for the same period in 2020. The Company had $90 thousand in charge-offs during the second quarter of 2021 related to a loan that the Bank sold as part of a portfolio management strategy. There were no charge-offs during the second quarter of 2020.

The Company had a $2.5 million provision for loan losses for the six months ended June 30, 2021, compared to $1.9 million for the same period in 2020. The Company had $91 thousand in charge-offs during the six months ended 2021 and $42 thousand in net loan recoveries during the first six months of 2020.

The allowance for loan losses as a percentage of total loans increased from 0.84% at June 30, 2020 to 1.24% at June 30, 2021. The allowance for loan losses increased $6.7 million or 52.3% from June 30, 2020 to June 30, 2021. The allowance for loan losses as a percentage of total loans (excluding PPP loans) increased from 0.93% at June 30, 2020 to 1.30% at June 30, 2021. The Company does not have a reserve on PPP loan balances, as they are 100% guaranteed by the U.S. Small Business Administration.

The Company continues to monitor and evaluate additional information as it becomes available concerning COVID and a number of economic performance metrics, including those related to the overall economy as well as specific industry sectors. The Company believes the allowance for loan losses was adequate to absorb probable losses inherent in the loan portfolio as of June 30, 2021. The continued evolution of COVID and the intensity of its socioeconomic effects, which are inherently uncertain, may positively or negatively impact the level of the allowance and provision in future periods.

Noninterest Income

The Company’s recurring sources of noninterest income consist primarily of bank owned life insurance income, service charges on deposit accounts and insurance commissions. Generally speaking, loan fees are included in interest income on the loan portfolio and not reported as noninterest income.

For the three and six months ended June 30, 2021, the Company reported total noninterest income of $417 thousand and $881 thousand, respectively, compared to $638 thousand for the three months ended June 30, 2020 and $882 thousand for the six months ended June 30, 2020. The decrease in noninterest income during the reporting periods was primarily due to a decrease in gains on sales of securities. Excluding gains from the sale of securities, the Company experienced increases of $76 thousand and $298 thousand during the three and six months ended June 30, 2021, respectively, when compared to the same periods in 2020. These increases were primarily attributable to increases in insurance commissions as a result of higher production and related incentives, an increase in other income as a result of a loan commitment fee received for a loan that did not close, and increases due to service charges on deposits.

Noninterest Expense

For the three months ended June 30, 2021, noninterest expense increased 23.1% to $9.1 million relative to the same period in 2020. Salaries and employee benefits expense was $5.7 million during the three months ended June 30, 2021, up $1.2 million or 27.9% when compared to $4.4 million during the three months ended June 30, 2020. Occupancy expense increased 5.1% or $25 thousand and furniture and equipment expense decreased 32.1% or $179 thousand when comparing the three months ended June 30, 2021 to the same period in 2020. Other operating expense increased by 32.9% or $617 thousand when comparing the three months ended June 30, 2021 to the same period in 2020.

For the six months ended June 30, 2021, noninterest expense increased 16.9% to $17.0 million relative to the same period in 2020. For the six months ended June 30, 2021, salaries and employee benefits expense increased 19.5% or $1.7 million compared to the six months ended June 30, 2020. Occupancy expense increased 4.6% or $45 thousand and furniture and equipment decreased 24.4% or $226 thousand when comparing the six months ended June 30, 2021 to the same period in 2020. Other operating expense increased by 24.3% or $894 thousand, during the six months ended June 30, 2021, compared to the same period in 2020.

For both the three and six months ended June 30, 2021, the 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. Increases in occupancy expense were primarily related to additional cleaning expenses related to COVID and general increase in rent expenses. Furniture and equipment expense declined due to renegotiation of software and equipment contracts during the past year. The increase in other operating expense for the three and six months ended June 30, 2021 when compared to the same periods in 2020 was primarily due to increases in legal expenses (including contemplated registration of the Company’s shares with the Securities and Exchange Commission), consulting expenses, marketing expenses, state bank franchise taxes, and expense associated with higher Federal Deposit Insurance Corporation deposit insurance that correlates directly to the Bank’s increase of insured deposit balances.

About John Marshall Bancorp, Inc.

John Marshall Bancorp, Inc. is the bank holding company for John Marshall Bank. John Marshall Bank is headquartered in Reston, Virginia with eight full-service branches located in Alexandria, Arlington, Loudoun, Prince William, Reston, Rockville, Tysons, and Washington, D.C. and one loan production office in Arlington, Virginia. The Company is dedicated to providing an exceptional customer experience and value to local businesses, business owners and consumers in the Washington D.C. Metro area. The Bank offers a comprehensive line of sophisticated banking products, services and a digital platform that rival those of the largest banks. Dedicated relationship managers serving as direct point-of-contact along with an experienced staff help achieve customer’s financial goals. Learn more at www.johnmarshallbank.com.

In addition to historical information, this press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 which are based on certain assumptions and describe future plans, strategies and expectations of the Company. These forward-looking statements are generally identified by use of the words “believe,” “expect,” “intend,” “anticipate,” “estimate,” “project,” “will,” “should,” “may,” “view,” “opportunity,” “potential,” or similar expressions or expressions of confidence. The Company’s ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on the operations of the Company and its subsidiary include, but are not limited to the following: changes in interest rates, general economic conditions, public health crises (such as the governmental, social and economic effects of COVID), levels of unemployment in the Bank’s lending area, real estate market values in the Bank’s lending area, future natural disasters, the level of prepayments on loans and mortgage-backed securities, legislative/regulatory changes, monetary and fiscal policies of the U.S. Government including policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System, the quality or composition of the loan or investment portfolios, demand for loan products, deposit flows, competition, demand for financial services in the Company’s market area, accounting principles and guidelines, and other conditions which by their nature are not susceptible to accurate forecast, and are subject to significant uncertainty. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. The Company does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions which may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events. Annualized, pro forma, projected and estimated numbers are used for illustrative purpose only, are not forecasts and may not reflect actual results.

 
John Marshall Bancorp, Inc.
Financial Highlights (Unaudited)
(Dollar amounts in thousands, except per share data)
 
At or For the Three Months Ended At or For the Six Months Ended
June 30, June 30,

 

2021

 

 

2020

 

 

 

2021

 

 

2020

 

Selected Balance Sheet Data
Cash and cash equivalents

$

168,004

 

$

120,106

 

 

168,004

 

 

120,106

 

Total investment securities

 

306,030

 

 

134,304

 

 

306,030

 

 

134,304

 

Loans, net of unearned income

 

1,567,112

 

 

1,517,631

 

 

1,567,112

 

 

1,517,631

 

Allowance for loan losses

 

19,381

 

 

12,725

 

 

19,381

 

 

12,725

 

Total assets

 

2,065,895

 

 

1,802,573

 

 

2,065,895

 

 

1,802,573

 

Non-interest bearing demand deposits

 

478,705

 

 

398,670

 

 

478,705

 

 

398,670

 

Interest bearing deposits

 

1,336,327

 

 

1,162,921

 

 

1,336,327

 

 

1,162,921

 

Total deposits

 

1,815,032

 

 

1,561,591

 

 

1,815,032

 

 

1,561,591

 

Shareholders' equity

 

195,246

 

 

176,326

 

 

195,246

 

 

176,326

 

 
Summary Results of Operations
Interest income

$

18,627

 

$

18,055

 

$

37,374

 

$

35,873

 

Interest expense

 

2,136

 

 

4,182

 

 

4,601

 

 

9,173

 

Net interest income

 

16,491

 

 

13,873

 

 

32,773

 

 

26,700

 

Provision for loan losses

 

90

 

 

1,507

 

 

2,455

 

 

1,926

 

Net interest income after provision for loan losses

 

16,401

 

 

12,366

 

 

30,318

 

 

24,774

 

Noninterest income

 

417

 

 

638

 

 

881

 

 

882

 

Noninterest expense

 

9,067

 

 

7,366

 

 

16,960

 

 

14,506

 

Income before income taxes

 

7,751

 

 

5,638

 

 

14,239

 

 

11,150

 

Net income

 

6,079

 

 

4,559

 

 

11,153

 

 

9,060

 

 
Per Share Data and Shares Outstanding
Earnings per share - basic

$

0.45

 

$

0.34

 

$

0.82

 

$

0.67

 

Earnings per share - diluted

$

0.44

 

$

0.33

 

$

0.80

 

$

0.66

 

Tangible book value per share

$

14.32

 

$

12.99

 

$

14.32

 

$

12.99

 

Weighted average common shares (basic)

 

13,572,779

 

 

13,504,858

 

 

13,565,320

 

 

13,393,546

 

Weighted average common shares (diluted)

 

13,868,147

 

 

13,635,927

 

 

13,852,936

 

 

13,664,108

 

Common shares outstanding at end of period

 

13,639,173

 

 

13,573,601

 

 

13,639,173

 

 

13,573,601

 

 
Performance Ratios
Return on average assets (annualized)

 

1.20

%

 

1.05

%

 

1.13

%

 

1.09

%

Return on average equity (annualized)

 

12.64

%

 

10.51

%

 

11.78

%

 

10.68

%

Net interest margin

 

3.31

%

 

3.27

%

 

3.37

%

 

3.30

%

Noninterest income as a percentage of average assets (annualized)

 

0.08

%

 

0.15

%

 

0.09

%

 

0.11

%

Noninterest expense to average assets (annualized)

 

1.79

%

 

1.70

%

 

1.72

%

 

1.75

%

Efficiency ratio

 

53.6

%

 

50.8

%

 

50.4

%

 

52.6

%

 
Asset Quality
Non-performing assets to total assets

 

0.00

%

 

0.00

%

 

0.00

%

 

0.00

%

Non-performing loans to total loans

 

0.00

%

 

0.00

%

 

0.00

%

 

0.00

%

Allowance for loan losses to non-performing loans

 

N/M

 

 

N/M

 

 

N/M

 

 

N/M

 

Allowance for loan losses to total loans (1)

 

1.24

%

 

0.84

%

 

1.24

%

 

0.84

%

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

 

0.02

%

 

(0.01

)%

 

0.01

%

 

(0.01

)%

 
Loans 30-89 days past due and accruing interest

$

- -

 

$

- -

 

$

- -

 

$

- -

 

Non-accrual loans

$

- -

 

$

- -

 

$

- -

 

$

- -

 

Other real estate owned

$

- -

 

$

- -

 

$

- -

 

$

- -

 

Non-performing assets (2)

$

- -

 

$

- -

 

$

- -

 

$

- -

 

Troubled debt restructurings (total)

$

473

 

$

633

 

$

473

 

$

633

 

Performing in accordance with modified terms

$

473

 

$

633

 

$

473

 

$

633

 

Not performing in accordance with modified terms

$

- -

 

$

- -

 

$

- -

 

$

- -

 

 
Capital Ratios
Tangible equity / tangible assets

 

9.5

%

 

9.8

%

 

9.5

%

 

9.8

%

Total risk-based capital ratio

 

15.0

%

 

14.4

%

 

15.0

%

 

14.4

%

Tier 1 risk-based capital ratio

 

13.9

%

 

11.9

%

 

13.9

%

 

11.9

%

Leverage ratio

 

10.7

%

 

9.9

%

 

10.7

%

 

9.9

%

Common equity tier 1 ratio

 

12.3

%

 

11.9

%

 

12.3

%

 

11.9

%

 
Other Information
Number of full time equivalent employees

 

143

 

 

133

 

 

143

 

 

133

 

# Full service branch offices

 

8

 

 

8

 

 

8

 

 

8

 

# Loan production or limited service branch offices

 

1

 

 

1

 

 

1

 

 

1

 

(1) The allowance for loan losses to total loans, excluding PPP loans of $82.2 million, was 1.30% at June 30, 2021. The allowance for loan losses to total loans, excluding PPP loans of $148.2 million, was 0.93% at June 30, 2020. PPP loans received no allocations in the allowance estimate due to the underlying guarantees.

(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. Does not include troubled debt restructurings which were accruing interest at the date indicated.

John Marshall Bancorp, Inc.
Consolidated Balance Sheets
(Dollar amounts in thousands, except per share data)
 
% Change
June 30, December 31, June 30, Last Six Year Over

 

2021

 

 

 

2020

 

 

 

2020

 

Months Year

Assets

(Unaudited) (Unaudited) (Unaudited)
 
Cash and due from banks

$

9,341

 

$

8,228

 

$

10,214

 

13.5

%

-8.5

%

Interest-bearing deposits in banks

 

158,663

 

 

130,229

 

 

109,892

 

21.8

%

44.4

%

Securities available-for-sale, at fair value

 

299,485

 

 

151,900

 

 

127,724

 

97.2

%

134.5

%

Restricted securities, at cost

 

4,939

 

 

5,676

 

 

5,839

 

-13.0

%

-15.4

%

Equity securities, at fair value

 

1,606

 

 

967

 

 

741

 

66.1

%

116.7

%

Loans, net of unearned income

 

1,567,112

 

 

1,562,524

 

 

1,517,631

 

0.3

%

3.3

%

Allowance for loan losses

 

(19,381

)

 

(17,017

)

 

(12,725

)

13.9

%

52.3

%

Net loans

 

1,547,731

 

 

1,545,507

 

 

1,504,906

 

0.1

%

2.8

%

Bank premises and equipment, net

 

1,955

 

 

2,422

 

 

2,213

 

-19.3

%

-11.7

%

Accrued interest receivable

 

4,513

 

 

5,308

 

 

5,469

 

-15.0

%

-17.5

%

Bank owned life insurance

 

20,794

 

 

20,587

 

 

20,353

 

1.0

%

2.2

%

Right of use assets

 

5,608

 

 

5,944

 

 

6,603

 

-5.7

%

-15.1

%

Other assets

 

11,260

 

 

8,728

 

 

8,619

 

29.0

%

30.6

%

 
Total assets

$

2,065,895

 

$

1,885,496

 

$

1,802,573

 

9.6

%

14.6

%

 
Liabilities and Shareholders' Equity
 

Liabilities

Deposits:
Non-interest bearing demand deposits

$

478,705

 

$

362,582

 

$

398,670

 

32.0

%

20.1

%

Interest bearing demand deposits

 

587,878

 

 

563,956

 

 

510,936

 

4.2

%

15.1

%

Savings deposits

 

79,119

 

 

62,138

 

 

49,896

 

27.3

%

58.6

%

Time deposits

 

669,330

 

 

651,444

 

 

602,089

 

2.7

%

11.2

%

Total deposits

 

1,815,032

 

 

1,640,120

 

 

1,561,591

 

10.7

%

16.2

%

Federal Home Loan Bank advances

 

18,000

 

 

22,000

 

 

26,000

 

-18.2

%

-30.8

%

Subordinated debt

 

24,704

 

 

24,679

 

 

24,655

 

0.1

%

0.2

%

Accrued interest payable

 

884

 

 

877

 

 

958

 

0.8

%

-7.7

%

Lease liabilities

 

5,873

 

 

6,208

 

 

6,853

 

-5.4

%

-14.3

%

Other liabilities

 

6,156

 

 

5,531

 

 

6,190

 

11.3

%

-0.5

%

Total liabilities

 

1,870,649

 

 

1,699,415

 

 

1,626,247

 

10.1

%

15.0

%

 
Shareholders' Equity
Preferred stock, par value $0.01 per share; authorized
1,000,000 shares; none issued

 

- -

 

 

- -

 

 

- -

 

- -

 

- -

 

Common stock, nonvoting, par value $0.01 per share; authorized
1,000,000 shares; none issued

 

- -

 

 

- -

 

 

- -

 

- -

 

- -

 

Common stock, voting, par value $0.01 per share; authorized
30,000,000 shares; issued and outstanding, 13,639,173
at 6/30/2021 including 60,995 unvested shares, 13,606,558
shares at 12/31/2020 including 74,000 unvested shares
and 13,573,601 at 6/30/2020, including 47,403 unvested shares

 

136

 

 

135

 

 

135

 

0.6

%

0.6

%

Additional paid-in capital

 

90,448

 

 

89,995

 

 

89,718

 

0.5

%

0.8

%

Retained earnings

 

103,318

 

 

92,165

 

 

82,700

 

12.1

%

24.9

%

Accumulated other comprehensive income

 

1,344

 

 

3,786

 

 

3,773

 

64.5

%

64.4

%

 
Total shareholders' equity

 

195,246

 

 

186,081

 

 

176,326

 

4.9

%

10.7

%

 
Total liabilities and shareholders' equity

$

2,065,895

 

$

1,885,496

 

$

1,802,573

 

9.6

%

14.6

%

 
John Marshall Bancorp, Inc.
Consolidated Statements of Income
(Dollar amounts in thousands, except per share data)
 
Three Months Ended Six Months Ended
June 30, June 30,

 

2021

 

2020

% Change

 

2021

 

2020

% Change
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Interest and Dividend Income
Interest and fees on loans

$

17,499

$

17,165

1.9

%

$

35,338

$

33,790

4.6

%

Interest on investment securities, taxable

 

993

 

744

33.5

%

 

1,762

 

1,516

16.2

%

Interest on investment securities, tax-exempt

 

30

 

26

15.4

%

 

60

 

52

15.4

%

Dividends

 

66

 

87

-24.1

%

 

131

 

182

-28.0

%

Interest on deposits in banks

 

39

 

33

18.2

%

 

83

 

333

-75.1

%

Total interest and dividend income

 

18,627

 

18,055

3.2

%

 

37,374

 

35,873

4.2

%

 
Interest Expense
Deposits

 

1,735

 

3,699

-53.1

%

 

3,795

 

8,157

-53.5

%

Federal Home Loan Bank advances

 

30

 

112

-73.2

%

 

63

 

272

-76.8

%

Subordinated debt

 

371

 

371

0.0

%

 

743

 

743

0.0

%

Other short-term borrowings

 

- -

 

- -

N/M

 

 

- -

 

1

-100.0

%

Total interest expense

 

2,136

 

4,182

-48.9

%

 

4,601

 

9,173

-49.8

%

 
Net interest income

 

16,491

 

13,873

18.9

%

 

32,773

 

26,700

22.7

%

 
Provision for loan losses

 

90

 

1,507

-94.0

%

 

2,455

 

1,926

27.5

%

 
Net interest income after provision for loan losses

 

16,401

 

12,366

32.6

%

 

30,318

 

24,774

22.4

%

 
Noninterest Income
Service charges on deposit accounts

 

131

 

102

28.4

%

 

252

 

236

6.8

%

Bank owned life insurance

 

100

 

115

-13.0

%

 

207

 

234

-11.5

%

Other service charges and fees

 

44

 

35

25.7

%

 

85

 

82

3.7

%

Gain on sale of securities

 

- -

 

297

-100.0

%

 

10

 

309

-96.8

%

Other operating income

 

142

 

89

59.6

%

 

327

 

21

1457.1

%

Total noninterest income

 

417

 

638

-34.6

%

 

881

 

882

-0.1

%

 
Noninterest Expenses
Salaries and employee benefits

 

5,680

 

4,442

27.9

%

 

10,669

 

8,928

19.5

%

Occupancy expense of premises

 

514

 

489

5.1

%

 

1,021

 

976

4.6

%

Furniture and equipment expenses

 

378

 

557

-32.1

%

 

700

 

926

-24.4

%

Other operating expenses

 

2,495

 

1,878

32.9

%

 

4,570

 

3,676

24.3

%

Total noninterest expenses

 

9,067

 

7,366

23.1

%

 

16,960

 

14,506

16.9

%

 
Income before income taxes

 

7,751

 

5,638

37.5

%

 

14,239

 

11,150

27.7

%

 
Income tax expense

 

1,672

 

1,079

55.0

%

 

3,086

 

2,090

47.7

%

 
Net income

$

6,079

$

4,559

33.3

%

$

11,153

$

9,060

23.1

%

 
Earnings Per Share
Basic

$

0.45

$

0.34

32.4

%

$

0.82

$

0.67

22.4

%

Diluted

$

0.44

$

0.33

33.3

%

$

0.80

$

0.66

21.2

%

 
John Marshall Bancorp, Inc.
 
Loan, Deposit and Borrowing Detail (Unaudited)
(Dollar amounts in thousands)
 

2021

2020

Loans

2Q 1Q Q4 Q3 Q2 Q1
$ Amount % of Total $ Amount % of Total $ Amount % of Total $ Amount % of Total $ Amount % of Total $ Amount % of Total
Commercial business loans

$

55,375

 

3.5

%

$

60,637

 

3.8

%

$

67,549

 

4.4

%

$

77,709

 

5.1

%

$

77,987

 

5.1

%

$

81,553

 

6.1

%

Commercial PPP loans

 

82,190

 

5.2

%

 

117,796

 

7.3

%

 

114,411

 

7.3

%

 

148,156

 

9.6

%

 

148,156

 

9.7

%

 

- -

 

0.0

%

Commercial owner-occupied real estate loans

 

320,519

 

20.4

%

 

307,918

 

19.2

%

 

290,802

 

18.6

%

 

260,575

 

17.0

%

 

267,032

 

17.6

%

 

255,010

 

19.1

%

Total business loans

 

458,084

 

29.2

%

 

486,351

 

30.3

%

 

472,762

 

30.3

%

 

486,440

 

31.7

%

 

493,175

 

32.4

%

 

336,563

 

25.2

%

 
Investor real estate loans

 

505,605

 

32.3

%

 

502,940

 

31.3

%

 

497,087

 

31.8

%

 

498,352

 

32.5

%

 

480,220

 

31.6

%

 

470,163

 

35.2

%

Construction & development loans

 

219,175

 

14.0

%

 

250,208

 

15.6

%

 

243,741

 

15.6

%

 

237,195

 

15.4

%

 

236,927

 

15.6

%

 

243,023

 

18.2

%

Multi-family loans

 

92,203

 

5.9

%

 

84,689

 

5.3

%

 

69,367

 

4.4

%

 

49,277

 

3.2

%

 

55,797

 

3.7

%

 

58,362

 

4.3

%

Total commercial real estate loans

 

816,983

 

52.1

%

 

837,837

 

52.2

%

 

810,195

 

51.8

%

 

784,824

 

51.1

%

 

772,944

 

50.9

%

 

771,548

 

57.7

%

 
Residential mortgage loans

 

291,615

 

18.6

%

 

281,964

 

17.5

%

 

278,763

 

17.8

%

 

262,049

 

17.1

%

 

252,494

 

16.6

%

 

227,172

 

17.0

%

Consumer loans

 

916

 

0.1

%

 

793

 

0.0

%

 

1,000

 

0.1

%

 

1,208

 

0.1

%

 

1,448

 

0.1

%

 

1,099

 

0.1

%

Total loans

$

1,567,598

 

100.0

%

$

1,606,945

 

100.0

%

$

1,562,720

 

100.0

%

$

1,534,521

 

100.0

%

$

1,520,061

 

100.0

%

$

1,336,382

 

100.0

%

Less: Allowance for loan losses

 

(19,381

)

 

(19,381

)

 

(17,017

)

 

(14,441

)

 

(12,725

)

 

(11,176

)

Net deferred loan costs (fees)

 

(486

)

 

(1,162

)

 

(196

)

 

(1,808

)

 

(2,430

)

 

439

 

Net loans

$

1,547,731

 

$

1,586,402

 

$

1,545,507

 

$

1,518,272

 

$

1,504,906

 

$

1,325,645

 

 
 

2021

2020

2Q 1Q Q4 Q3 Q2 Q1

Deposits

$ Amount % of Total $ Amount % of Total $ Amount % of Total $ Amount % of Total $ Amount % of Total $ Amount % of Total
Noninterest-bearing demand deposits

$

478,705

 

26.4

%

$

419,796

 

23.8

%

$

362,582

 

22.1

%

$

385,885

 

23.8

%

$

398,670

 

25.5

%

$

274,878

 

19.9

%

Interest-bearing demand deposits:
NOW accounts(1)

 

254,060

 

14.0

%

 

245,274

 

13.9

%

 

233,993

 

14.3

%

 

227,816

 

14.1

%

 

207,558

 

13.3

%

 

179,197

 

13.0

%

Money market accounts(1)

 

333,818

 

18.4

%

 

344,807

 

19.6

%

 

329,960

 

20.1

%

 

321,760

 

19.8

%

 

303,378

 

19.4

%

 

289,131

 

21.0

%

Savings accounts

 

79,119

 

4.4

%

 

72,102

 

4.1

%

 

62,138

 

3.8

%

 

60,418

 

3.7

%

 

49,896

 

3.2

%

 

32,745

 

2.4

%

Certificates of deposit
$250,000 or more

 

243,662

 

13.4

%

 

265,772

 

15.1

%

 

258,744

 

15.8

%

 

281,302

 

17.4

%

 

250,779

 

16.1

%

 

249,802

 

18.1

%

Less than $250,000

 

112,991

 

6.2

%

 

119,828

 

6.8

%

 

115,634

 

7.0

%

 

117,171

 

7.2

%

 

121,600

 

7.8

%

 

128,176

 

9.3

%

QwickRate® certificates of deposit

 

31,481

 

1.7

%

 

38,565

 

2.2

%

 

29,765

 

1.8

%

 

29,781

 

1.8

%

 

31,764

 

2.0

%

 

20,011

 

1.4

%

IntraFi® certificates of deposit

 

60,761

 

3.3

%

 

38,284

 

2.2

%

 

39,725

 

2.4

%

 

36,909

 

2.3

%

 

37,320

 

2.4

%

 

57,398

 

4.2

%

Brokered deposits

 

220,435

 

12.1

%

 

216,962

 

12.3

%

 

207,579

 

12.7

%

 

161,104

 

9.9

%

 

160,626

 

10.3

%

 

148,104

 

10.7

%

Total deposits

$

1,815,032

 

100.0

%

$

1,761,390

 

100.0

%

$

1,640,120

 

100.0

%

$

1,622,146

 

100.0

%

$

1,561,591

 

100.0

%

$

1,379,442

 

100.0

%

 

Borrowings

Federal Home Loan Bank advances

$

18,000

 

42.2

%

$

22,000

 

47.1

%

$

22,000

 

47.1

%

$

22,000

 

47.1

%

$

26,000

 

51.3

%

$

37,000

 

60.0

%

Subordinated debt

 

24,704

 

57.8

%

 

24,692

 

52.9

%

 

24,679

 

52.9

%

 

24,667

 

52.9

%

 

24,655

 

48.7

%

 

24,642

 

40.0

%

Total borrowings

$

42,704

 

100.0

%

$

46,692

 

100.0

%

$

46,679

 

100.0

%

$

46,667

 

100.0

%

$

50,655

 

100.0

%

$

61,642

 

100.0

%

 
Total deposits and borrowings

$

1,857,736

 

$

1,808,082

 

$

1,686,799

 

$

1,668,813

 

$

1,612,246

 

$

1,441,084

 

 
Core customer funding sources (2)

$

1,563,116

 

85.3

%

$

1,505,863

 

84.4

%

$

1,402,776

 

84.4

%

$

1,431,261

 

87.1

%

$

1,369,201

 

86.2

%

$

1,211,327

 

85.5

%

Wholesale funding sources (3)

 

269,916

 

14.7

%

 

277,527

 

15.6

%

 

259,344

 

15.6

%

 

212,885

 

12.9

%

 

218,390

 

13.8

%

 

205,115

 

14.5

%

Total funding sources

$

1,833,032

 

100.0

%

$

1,783,390

 

100.0

%

$

1,662,120

 

100.0

%

$

1,644,146

 

100.0

%

$

1,587,591

 

100.0

%

$

1,416,442

 

100.0

%

(1) Includes IntraFi® accounts.
(2) Includes reciprocal IntraFi Demand®, IntraFi Money Market® and IntraFi CD® deposits, which are maintained by customers.
(3) Consists of QwickRate® certificates of deposit, brokered deposits, federal funds purchased and Federal Home Loan Bank advances.
John Marshall Bancorp, Inc.
 
Average Balance Sheets, Interest and Rates (unaudited)
(Dollar amounts in thousands)
 
Three Months Ended June 30, 2021 Three Months Ended June 30, 2020
Interest Average Interest Average
Average Income- Yields Average Income- Yields
Balance Expense /Rates Balance Expense /Rates
Assets
Securities

$

256,671

$

1,089

1.70

%

$

138,350

$

857

2.49

%

Loans, net of unearned income

 

1,602,125

 

17,499

4.38

%

 

1,467,631

 

17,165

4.70

%

Interest-bearing deposits in other banks

 

137,759

 

39

0.11

%

 

102,625

 

33

0.13

%

Total interest-earning assets

$

1,996,555

$

18,627

3.74

%

$

1,708,606

$

18,055

4.25

%

Other assets

 

30,809

 

36,417

Total assets

$

2,027,364

$

1,745,023

Liabilities & Shareholders' equity
Interest-bearing deposits
NOW accounts

$

250,845

$

194

0.31

%

$

192,375

$

282

0.59

%

Money market accounts

 

337,752

 

314

0.37

%

 

300,554

 

553

0.74

%

Savings accounts

 

75,321

 

70

0.37

%

 

39,121

 

90

0.93

%

Time deposits

 

674,969

 

1,157

0.69

%

 

582,820

 

2,774

1.91

%

Total interest-bearing deposits

$

1,338,887

$

1,735

0.52

%

$

1,114,870

$

3,699

1.33

%

 
Federal funds purchased

$

- -

$

- -

0.00

%

$

605

$

- -

0.00

%

Subordinated debt

 

24,696

 

371

6.03

%

 

24,647

 

371

6.05

%

Other borrowed funds

 

18,000

 

30

0.67

%

 

35,538

 

112

1.27

%

Total interest-bearing liabilities

$

1,381,583

$

2,136

0.62

%

$

1,175,660

$

4,182

1.43

%

Demand deposits

 

439,356

 

382,581

Other liabilities

 

13,507

 

12,293

Total liabilities

$

1,834,446

$

1,570,534

Shareholders' equity

 

192,918

 

174,489

Total liabilities and shareholders' equity

$

2,027,364

$

1,745,023

Interest rate spread

3.12

%

2.82

%

Net interest income and margin

$

16,491

3.31

%

$

13,873

3.27

%

 
 
Six Months Ended June 30, 2021 Six Months Ended June 30, 2020
Interest Average Interest Average
Average Income- Yields Average Income- Yields
Balance Expense /Rates Balance Expense /Rates
Assets
Securities

$

218,637

$

1,953

1.80

%

$

137,204

$

1,750

2.56

%

Loans, net of unearned income

 

1,589,059

 

35,338

4.48

%

 

1,394,039

 

33,790

4.87

%

Interest-bearing deposits in other banks

 

152,203

 

83

0.11

%

 

98,049

 

333

0.68

%

Total interest-earning assets

$

1,959,899

$

37,374

3.85

%

$

1,629,292

$

35,873

4.43

%

Other assets

 

31,029

 

38,005

Total assets

$

1,990,928

$

1,667,297

Liabilities & Shareholders' equity
Interest-bearing deposits
NOW accounts

$

244,952

$

392

0.32

%

$

170,726

$

627

0.74

%

Money market accounts

 

336,528

 

630

0.38

%

 

296,720

 

1,456

0.99

%

Savings accounts

 

71,307

 

135

0.38

%

 

34,959

 

191

1.10

%

Time deposits

 

670,014

 

2,638

0.79

%

 

587,855

 

5,883

2.01

%

Total interest-bearing deposits

$

1,322,801

$

3,795

0.58

%

$

1,090,260

$

8,157

1.50

%

 
Federal funds purchased

$

- -

$

- -

0.00

%

$

368

$

1

0.55

%

Subordinated debt

 

24,690

 

743

6.07

%

 

24,641

 

743

6.06

%

Other borrowed funds

 

18,757

 

63

0.68

%

 

40,121

 

272

1.36

%

Total interest-bearing liabilities

$

1,366,248

$

4,601

0.68

%

$

1,155,390

$

9,173

1.60

%

Demand deposits

 

421,349

 

329,395

Other liabilities

 

12,364

 

11,966

Total liabilities

$

1,799,961

$

1,496,751

Shareholders' equity

 

190,967

 

170,546

Total liabilities and shareholders' equity

$

1,990,928

$

1,667,297

Interest rate spread

3.17

%

2.83

%

Net interest income and margin

$

32,773

3.37

%

$

26,700

3.30

%

 

Chris Bergstrom
(703) 584-0840

Source: John Marshall Bancorp, Inc.



Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

Business Wire, Press Releases

Related Entities

Dividend, FDIC, Earnings