John Marshall Bancorp, Inc. (JMSB) 10-Q Quarterly Report November 2023

Reston, VA – John Marshall Bancorp, Inc. (Nasdaq: JMSB) (the “Company”), parent company of John Marshall Bank (the “Bank”), reported its financial results for the three and nine months ended September 30, 2023.

Selected Highlights

●

Strong Loan Growth – Loans, net of unearned income, grew $95.0 million or 5.5% from September 30, 2022 to September 30, 2023. Loans, net of unearned income, grew $50.3 million or 11.3% annualized from June 30, 2023 to September 30, 2023. The Company’s loan pipeline headed into the fourth quarter of 2023 continues to be strong as we are seeing increased lending opportunities that meet our underwriting standards and, in many cases, fewer competitors for those loans as some market participants have scaled back lending efforts.

●

Pristine Asset Quality – For the sixteenth consecutive quarter, the Company had no nonperforming loans, no other real estate owned and no loans 30 days or more past due. There were no charge-offs during the quarter. The Company continues to adhere to strict underwriting standards and proactively manages the portfolio.

●

Well Capitalized – Each of the Bank’s regulatory capital ratios is well in excess of the regulatory threshold to be considered well capitalized. The Bank’s equity to assets and total risk-based capital ratios were 10.6% and 15.7%, respectively, as of September 30, 2023.

●

Continued Strength in CRE Loan Portfolio – The Company’s loan portfolio remains a source of strength. As of September 30, 2023, the Company’s commercial real estate (“CRE”) non-owner occupied and owner-occupied portfolios had a weighted average loan-to-values of 50.2% and 55.1%, respectively, and weighted average debt service coverage ratios of 2.1x and 3.5x, respectively.

●

Decreased Wholesale Deposits – The Company reduced wholesale deposits (i.e., Brokered and QwickRate CDs) by $58.7 million or 16.3% during the three months ended September 30, 2023. Year-to-date, the Company reduced wholesale deposits by $73.7 million or 19.7%. As outlined in the deposit detail table included in this release, wholesale deposits have declined in each of the past two quarters by a total of $95.4 million.

●

Increased Core Deposits – During the quarter, the Company grew non-interest bearing demand deposits by $3.9 million or 3.6% annualized. Non-interest bearing deposits as a percentage of total deposits increased from 21.2% at June 30, 2023 to 22.1% as of September 30, 2023. Non-maturing deposits increased $16.5 million during the three months ended September 30, 2023, representing 5.7% annualized growth. Core customer funding sources, as defined in the deposit detail table included with this release, increased from 80.3% as of June 30, 2023 to 82.6% as of September 30, 2023.

●

Stabilizing Net Interest Margin – Net interest margin was 2.08% for the three months ended September 30, 2023 compared to 2.10% for the three months ended June 30, 2023 and 3.10% for the three months ended September 30, 2022. The Company realized the initial benefits of the July 2023 balance sheet restructuring disclosed in the Company’s earnings release and Form 10-Q for the second quarter of 2023 (the “Restructuring”). We continue to redeploy the Restructuring proceeds into higher yielding, high-quality earning assets and pay down higher cost funding sources. As a result of the Restructuring, strong loan growth and reduction of wholesale deposits, net interest margin progressively improved throughout the quarter and ended the month of September at 2.13%.

Chris Bergstrom, President and Chief Executive Officer, commented, “By selling low yielding assets through the Restructuring, we increased the flexibility and earnings horsepower of our balance sheet. Part of the proceeds from

The following information was filed by John Marshall Bancorp, Inc. (JMSB) on Wednesday, October 18, 2023 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

Please wait while we load the requested 10-Q report or click the link below:

https://last10k.com/sec-filings/report/1710482/000155837023018129/jmsb-20230930x10q.htm

View differences made from one quarter to another to evaluate John Marshall Bancorp, Inc.'s financial trajectory

Compare SEC Filings Year-over-Year (YoY) and Quarter-over-Quarter (QoQ) — *Sample 10-K Year-over-Year (YoY) Comparison*

Compare this 10-Q Quarterly Report to its predecessor by reading our highlights to see what text and tables were ~~removed~~ , added and changed by John Marshall Bancorp, Inc..

Continue

Assess how John Marshall Bancorp, Inc.'s management team is paid from their Annual Proxy

John Marshall Bancorp, Inc.'s Definitive Proxy Statement (Form DEF 14A) filed after their 2023 10-K Annual Report includes:

Voting Procedures
Board Members
Executive Team
Salaries, Bonuses, Perks
Peers / Competitors

Continue

Rating
Learn More

Filter Sentiment:

All

Positive

Negative

Filter Category:

All

Financial

Legal

Revenue

Other

Filter Subcategory:

All

Expense

Income

Earnings

Product

Other

Inside John Marshall Bancorp, Inc.'s 10-Q Quarterly Report:

Financial - Shares Highlight
Under the stock repurchase program, the Company may repurchase up to 700,000 shares of its outstanding common stock, or 5.0% of outstanding shares as of September 30, 2023.

Financial - Expense Highlight
The increase in the cost of interest-bearing liabilities was primarily due to higher interest expense on deposits and other borrowings.
Financial - Income Highlight
Core non-interest income (Non-GAAP) defined as reported non-interest income excluding the $17.1 million loss stemming from the bond sale portion of the Restructuring, increased $577 thousand primarily due to favorable variances of $610 thousand as a result of mark-to-market adjustments on investments related to the Company's nonqualified deferred compensation plan.
Financial - Expense Highlight
The increase in the cost of interest-bearing liabilities was primarily due to a 2.53% increase in the cost of interest-bearing deposits as a result of the repricing of the Company's time deposits coupled with an increase in rates offered on deposit accounts subsequent to September 30, 2022 as a result of higher market interest rates.
Financial - Expense Highlight
The increase in the overall cost of interest-bearing liabilities during the nine months ended September 30, 2023 relative to the same period of the prior year is largely due to rate hikes totaling 5.25% by the Federal Reserve since the beginning of 2022, which is increasing cost of funds and compressing net interest margins broadly across the banking industry.
Financial - Expense
Non-interest expense decreased $298 thousand...Read more
Financial - Expense
The decrease in furniture and...Read more
Financial - Income
Interest income increased by $5.0...Read more
Financial - Income
Interest income increased by $13.7...Read more
Financial - Expense
On May 15, 2023, the...Read more
Financial - Expense
The cost of interest-bearing liabilities...Read more
Financial - Income
Non-GAAP measures used in this...Read more
Financial - Expense
Non-interest expense decreased $1.2 million...Read more
Financial - Income
Income tax expense decreased $4.4...Read more
Financial - Earnings
Reported (GAAP) and core (Non-GAAP)...Read more
Legal - Other
The decrease in professional fees...Read more
Financial - Earnings
The following table reconciles net...Read more
Other - Other
To account for credit risk...Read more
Financial - Income
(2) The allowance coverage ratio...Read more
Financial - Income
(2) The allowance coverage ratio...Read more
Other - Other
The Company's total liabilities decreased...Read more
Financial - Income
The Company also had an...Read more
Other - Other
Monitoring and managing both liquidity...Read more
Financial - Income
Interest income on interest-bearing deposits...Read more
Financial - Expense
The increase in franchise tax...Read more
Financial - Expense
The increase in franchise tax...Read more
Other - Other
The increase in interest-bearing deposits...Read more
Other - Other
The Company focuses on funding...Read more
Other - Other
Should any known or unknown...Read more
Financial - Income
53 The following table summarizes...Read more
Revenue - Product
Investment securities are classified as...Read more
Other - Other
Conditions may arise in the...Read more
Financial - Income
Core non-interest income (Non-GAAP) decreased...Read more
Financial - Income
Fully tax-equivalent interest income on...Read more
Financial - Shares
52 Shareholders' equity increased $7.8...Read more
Financial - Shares
Shareholders' equity increased $7.8 million...Read more
Financial - Expense
The weighted-average yield below represents...Read more
Financial - Income
47 The following table presents...Read more
Financial - Income
41 The following table presents...Read more
Financial - Income
The decrease in the allowance...Read more
Revenue - Product
The increase in volume of...Read more
Other - Other
The Company continues to maintain...Read more
Financial - Expense
Tax benefit (expense) is calculated...Read more
Other - Other
Management believes that the supplemental...Read more
Financial - Expense
Tax benefit (expense) is calculated...Read more
Other - Other
Changes in the economic assumptions...Read more
Other - Other
The decrease in effective tax...Read more
Financial - Expense
The largest component of non-interest...Read more
Financial - Income
Net interest income decreased $5.7...Read more
Financial - Income
Net interest income decreased $14.4...Read more
Financial - Income
Fully tax-equivalent interest income on...Read more
Other - Other
The review resulted in a...Read more
Other - Other
The review resulted in a...Read more
Other - Other
The review resulted in a...Read more
Financial - Expense
The decrease in occupancy expense...Read more
Other - Other
Certain policies inherently rely more...Read more
Other - Other
These disclosures should not be...Read more
Revenue - Product
The increase in rate and...Read more
Other - Other
Average interest-bearing deposits in other...Read more
Financial - Earnings
The Company's interest-earning assets include...Read more
Other - Other
The following tables summarize the...Read more
Revenue - Product
The decrease in total assets...Read more

Financial Statements, Disclosures and Schedules

Inside this 10-Q Quarterly Report

Material Contracts, Statements, Certifications & more

John Marshall Bancorp, Inc. provided additional information to their SEC Filing as exhibits

Exhibit 31.1: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 31.2: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 32.1: Section 1350 Certification

Ticker: JMSB
CIK: 1710482
Form Type: 10-Q Quarterly Report
Accession Number: 0001558370-23-018129
Submitted to the SEC: Wed Nov 08 2023 9:00:46 AM EST
Accepted by the SEC: Wed Nov 08 2023
Period: Saturday, September 30, 2023
Industry: State Commercial Banks

External Resources:
Stock Quote
Social Media
SEC.gov

Bookmark the Permalink:
https://last10k.com/sec-filings/jmsb/0001558370-23-018129.htm

John Marshall Bancorp, Inc. (JMSB) SEC Filing 10-Q Quarterly Report for the period ending Saturday, September 30, 2023

SEC Filings

JMSB Valuations

JMSB Annual Reports

JMSB Quarterly Reports

JMSB Corporate News