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John Marshall Bancorp, Inc. Reports Higher Net Interest Margin, Strong Loan Growth and Pristine Asset Quality

John Marshall Bancorp, Inc. (Nasdaq: JMSB) (the “Company”), parent company of John Marshall Bank (the “Bank”), reported its financial results for the three and twelve months ended December 31, 2023.

Selected Highlights

  • Higher Net Interest Margin – Net interest margin was 2.12% for the three months ended December 31, 2023 compared to 2.08% for the three months ended September 30, 2023. During the third quarter, we repositioned the balance sheet by shedding $183.1 million of lower-yielding assets. During the fourth quarter, we continued to originate and reprice loans at generally higher yields and slow the rate of increase in our funding costs. As of December 31, 2023, the Company believes it is well-positioned for the lower interest rate environment implied by interest rate futures.
  • Strong Loan Growth – Loans, net of unearned income, grew $39.8 million or 8.7% annualized from September 30, 2023 to December 31, 2023. Loans, net of unearned income, grew $90.2 million or 10.1% annualized from June 30, 2023 to December 31, 2023. The Company remains selective on credit and continues to pursue opportunities where we can obtain an appropriate risk-adjusted return. We continue to see new lending opportunities that meet our underwriting standards as some of our competitors have scaled back lending efforts.
  • Pristine Asset Quality – For the seventeenth 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.
  • Stable Profitability – Reported net income was $4.5 million for the three months ended December 31, 2023 and the three months ended June 30, 2023. Excluding the non-recurring loss on securities, net of tax and non-recurring taxes and penalties on the early surrender of Bank Owned Life Insurance policies (the “Restructuring”), previously disclosed in our July 21, 2023 earnings release, the Company’s core net income (Non-GAAP) for each of the last three quarters was approximately $4.5 million during a challenging economic environment. The reported loss of $10.1 million for the three months ended September 30, 2023 resulted primarily from the Restructuring. The Company’s balance sheet is well-positioned for falling rates.
  • Competitive Shareholder Returns – From December 31, 2022 to December 31, 2023, the Company increased book value per share from $15.09 to $16.25. In addition to the $0.22 cash dividend paid in July 2023, total return to shareholders for 2023 was $1.38 or an increase of 9.2%.
  • 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 11.1% and 15.7%, respectively, as of December 31, 2023.
  • Achieved SBA Preferred Lender Status – On December 4, 2023, the Company announced that it had been designated a preferred lender by the U.S. Small Business Administration (“SBA”). As an SBA preferred lender, the Company now has the authority and proven expertise to make loan decisions without direct approval from the SBA. This streamlined loan approval process will facilitate commercial loan and deposit growth. In addition, we expect to increase fee income through the sale of certain SBA loans.

Chris Bergstrom, President and Chief Executive Officer, commented, “2023 underscored the importance of consistency of purpose and a conservative balance sheet. If the current rate environment prevails through April 2024, this will be the longest inverted yield curve in the country’s history. This has exerted significant pressures on community banks. John Marshall started and finished the year with a strong balance sheet as demonstrated by our robust capital position, spotless asset quality and ample liquidity. We continued cultivating clients and prospects, while some of our competitors chose to scale back or cease lending. Our underwriting remained steadfast and we booked loans where we could earn an appropriate return. We believe providing an unmatched customer experience, regardless of the economic cycle, differentiates us from our peers. While we were unable to produce a fifth consecutive year of record earnings, we de-risked the balance sheet with our July restructuring and increased our net interest margin and core earnings. We look forward to 2024 and having the balance sheet to capitalize on new opportunities and driving long-term shareholder value.”

Balance Sheet, Liquidity and Credit Quality

Total assets were $2.24 billion at December 31, 2023, $2.30 billion at September 30, 2023 and $2.35 billion at December 31, 2022.

Total loans, net of unearned income, increased $70.5 million or 3.9% to $1.86 billion at December 31, 2023, compared to $1.79 billion at December 31, 2022 and increased $39.8 million during the quarter ended December 31, 2023 or 8.7% annualized from $1.82 billion at September 30, 2023. Detail on the loan growth can be seen in the attached tables.

The carrying value of the Company’s fixed income securities portfolio was $265.5 million at December 31, 2023, $265.4 million at September 30, 2023 and $457.0 million at December 31, 2022. The reduction in the portfolio resulted primarily from the Restructuring. As of December 31, 2023, 96.1% of our bond portfolio was covered by the implied guarantee of the United States government or one of its agencies. At December 31, 2023, nearly 61.0% of the fixed income portfolio was invested in amortizing bonds, which provides the Company with a source of steady cash flow. At December 31, 2023, the fixed income portfolio had an estimated weighted average life of 4.3 years. The available-for-sale portfolio comprised approximately 64.0% of the fixed income securities portfolio and had a weighted average life of 3.0 years at December 31, 2023. The held-to-maturity portfolio comprised approximately 36.0% of the fixed income securities portfolio and had a weighted average life of 6.7 years at December 31, 2023. The Company did not purchase any fixed income securities during the three or twelve month periods ended December 31, 2023.

The Company’s balance sheet remains highly liquid. The Company’s liquidity position, defined as the sum of cash, unencumbered securities and available secured borrowing capacity, totaled $638.9 million as of December 31, 2023 compared to $763.5 million as of December 31, 2022 and represented 28.5% and 32.5% of total assets, respectively. In addition to available secured borrowing capacity, the Bank had available federal funds lines of $100.0 million at December 31, 2023.

Total deposits were $1.91 billion at December 31, 2023, $1.98 billion at September 30, 2023 and $2.06 billion at December 31, 2022. Total deposits decreased $75.0 million or 3.8% when compared to September 30, 2023. Detail on the deposit activity can be seen in the attached tables. As of December 31, 2023, the Company had $634.1 million of deposits that were not insured or not collateralized by securities compared to $614.0 million at September 30, 2023. Deposits that were not insured or not collateralized by securities represented only 33.3% of total deposits at December 31, 2023 compared to 31.0% at September 30, 2023.

The Company obtained a $54.0 million advance from the Bank Term Funding Program (“BTFP”) on May 15, 2023 to secure lower funding costs relative to wholesale deposits. The BTFP advance has a term of one year, bears interest at a fixed rate of 4.80% and can be prepaid without penalty prior to maturity. Total borrowings as of December 31, 2023 consisted of subordinated debt totaling $24.7 million, the BTFP advance totaling $54.0 million, and federal funds purchased totaling $10 million. The Company did not have any Federal Home Loan Bank of Atlanta (“FHLB”) advances outstanding as of December 31, 2023.

Shareholders’ equity increased $17.1 million or 8.0% to $229.9 million at December 31, 2023 compared to $212.8 million at December 31, 2022. Book value per share was $16.25 as of December 31, 2023 compared to $15.09 as of December 31, 2022, an increase of 7.7%. The year-over-year change in book value per share was primarily due to the Company’s earnings over the previous twelve months and decrease in accumulated other comprehensive loss, partially offset by increased share count from shareholder option exercises and restricted share award issuances and dividends paid. The decrease in accumulated other comprehensive loss was primarily attributable to the sale of certain available-for-sale investment securities in the July 2023 Restructuring and decreases in unrealized losses on our available-for-sale investment portfolio due to market value changes. Book value per share increased from $15.61 as of September 30, 2023 or 16.3% annualized.

The Bank’s capital ratios at December 31, 2023 improved when compared to December 31, 2022 and remained well above regulatory thresholds for well-capitalized banks. As of December 31, 2023, the Bank’s total risk-based capital ratio was 15.7%, compared to 15.6% at December 31, 2022 (GAAP). As outlined below, the Bank would continue to remain well above regulatory thresholds for well-capitalized banks at December 31, 2023 in the hypothetical scenario where the entire bond portfolio was sold at fair market value and the losses realized (Non-GAAP). Refer to “Explanation of Non-GAAP Measures” and the “Reconciliation of Certain Non-GAAP Financial Measures” table for further details about financial measures used in this release that were determined by methods other than in accordance with GAAP.

 

 

 

 

 

 

 

 

 

 

 

Bank Regulatory Capital Ratios (As Reported)

 

 

 

Well-

Capitalized

Threshold

 

 

December 31, 2023

 

 

December 31, 2022

 

Total risk-based capital ratio

 

 

10.0

%

 

15.7

%

 

15.6

%

Tier 1 risk-based capital ratio

 

 

8.0

%

 

14.7

%

 

14.4

%

Common equity tier 1 ratio

 

 

6.5

%

 

14.7

%

 

14.4

%

Leverage ratio

 

 

5.0

%

 

11.6

%

 

11.3

%

 

 

 

 

 

 

 

 

 

 

 

Adjusted Bank Regulatory Capital Ratios (Hypothetical Scenario of Selling All Bonds at Fair Market Value - Non-GAAP)

 

 

 

Well-

Capitalized

Threshold

 

 

December 31, 2023

 

 

December 31, 2022

 

Adjusted total risk-based capital ratio

 

 

10.0

%

 

14.7

%

 

13.8

%

Adjusted tier 1 risk-based capital ratio

 

 

8.0

%

 

13.5

%

 

12.6

%

Adjusted common equity tier 1 ratio

 

 

6.5

%

 

13.5

%

 

12.6

%

Adjusted leverage ratio

 

 

5.0

%

 

11.9

%

 

11.8

%

The Company recorded no charge-offs during the fourth quarter of 2023, the third quarter of 2023 or the fourth quarter of 2022. As of December 31, 2023, the Company had no non-accrual loans, no loans greater than 30 days past due and no other real estate owned assets.

At December 31, 2023, the allowance for loan credit losses was $19.5 million or 1.05% of outstanding loans, net of unearned income, compared to $20.0 million or 1.10% of outstanding loans, net of unearned income, at September 30, 2023. The decrease in the allowance as a percentage of outstanding loans, net of unearned income, was primarily a result of improved economic forecasts used in the quantitative portion of the model and an assessment of management’s considerations of existing economic versus historical conditions combined with the continued strong credit performance of our loan portfolio segments.

At December 31, 2023, the allowance for credit losses on unfunded loan commitments was $0.6 million compared to $0.9 million at September 30, 2023. The decrease in the allowance for credit losses on unfunded loan commitments was primarily the result of the updated loss factors utilized on the funded loan portfolio and decreases in unfunded commitments during the quarter.

The Company did not have an allowance for credit losses on held-to-maturity securities as of December 31, 2023 or September 30, 2023.

The Company’s owner occupied and non-owner occupied CRE portfolios continue to be of sound credit quality. The following table provides a detailed breakout of the two aforementioned portfolios as of December 31, 2023, demonstrating their strong debt-service-coverage and loan-to-value ratios.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial Real Estate

 

Owner Occupied

Non-owner Occupied

Asset Class

Weighted

Average Loan-to-

Value(1)

 

Weighted

Average Debt

Service Coverage

Ratio(2)

 

Number of Total

Loans

 

 

Principal

Balance(3)

(Dollars in

thousands)

Weighted

Average Loan-to-

Value(1)

 

Weighted

Average Debt

Service Coverage

Ratio(2)

 

Number of Total

Loans

 

 

Principal

Balance(3)

(Dollars in

thousands)

Warehouse & Industrial

58.2

%

3.5

x

52

 

 $

78,485

50.8

%

2.6

x

40

 

 $

99,618

Office

60.5

%

3.9

x

126

 

79,985

48.2

%

1.9

x

63

 

122,899

Retail

61.3

%

2.3

x

40

 

 

59,592

52.3

%

1.9

x

143

 

 

407,123

Church

31.3

%

2.7

x

19

 

 

36,452

- -

 

- -

 

- -

 

 

- -

Hotel/Motel

- -

 

- -

 

- -

 

 

- -

59.9

%

2.2

x

7

 

 

38,974

Other(4)

52.6

%

3.3

x

50

 

 

105,588

55.0

%

1.9

x

15

 

 

20,942

Total

 

 

 

 

287

 

$

360,102

 

 

 

 

268

 

$

689,556

____________________

(1)

Loan-to-value is determined at origination date and is divided by principal balance as of December 31, 2023.

(2)

The debt service coverage ratio (“DSCR”) is calculated from the primary source of repayment for the loan. Owner occupied DSCR’s are derived from cash flows from the owner occupant’s business, property and their guarantors, while non-owner occupied DSCR’s are derived from the net operating income of the property.

(3)

Principal balance excludes deferred fees or costs.

(4)

Other asset class is primarily comprised of schools, daycares and country clubs.

Income Statement Review

Quarterly Results

The Company reported net income of $4.5 million for the fourth quarter of 2023, a decrease of $3.7 million when compared to $8.2 million for the fourth quarter of 2022.

Net interest income for the fourth quarter of 2023 decreased $5.5 million or 31.3% compared to the fourth quarter of 2022, driven primarily by the increase in costs of interest-bearing liabilities outpacing the increase in yield on interest-earning assets. The yield on interest earning assets was 4.68% for the fourth quarter of 2023 compared to 4.10% for the same period in 2022. The increase in yield on interest earning assets was primarily due to higher yields on the Company’s loan portfolio and deposits in banks as a result of increases in interest rates subsequent to the fourth quarter of 2022. The cost of interest-bearing liabilities was 3.64% for the fourth quarter of 2023 compared to 1.53% for the same quarter in the prior year. The increase in the cost of interest-bearing liabilities was primarily due to a 2.11% 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 money market, NOW and savings deposit accounts since the fourth quarter of 2022. The increase in the overall cost of interest-bearing liabilities in the fourth quarter of 2023 relative to the same period of the prior year is largely due to rate hikes totaling 5.25% by the Federal Reserve Bank since the beginning of 2022, which has increased cost of funds and compressed net interest margins across the banking industry. The annualized net interest margin for the fourth quarter of 2023 was 2.12% as compared to 3.05% for the same quarter of the prior year. The decrease in net interest margin was primarily due to the increase in cost of interest-bearing deposits, which was partially offset by an increase in yields on the Company’s interest-earning assets. With a portion of the proceeds from the Restructuring being redeployed to higher yielding assets, the Company’s net interest margin increased from the 2.08% reported in the third quarter 2023.

The Company recorded a $781 thousand release of provision for credit losses for the fourth quarter of 2023 compared to a provision of $175 thousand for the fourth quarter of 2022. The release of provision for credit losses during the fourth quarter of 2023 was primarily a result of improved economic forecasts used in the quantitative portion of the model and an assessment of management’s considerations of existing economic versus historical conditions combined with the continued strong credit performance of our loan portfolio segments.

Non-interest income decreased $94 thousand during the fourth quarter of 2023 compared to the fourth quarter of 2022. The decrease in non-interest income was primarily due to a decrease in bank owned life insurance (“BOLI”) income of $99 thousand due to the surrender of all BOLI policies as part of the Restructuring, decrease in swap fee income of $127 thousand and decreases in wire and other customer transaction based fees. These decreases were partially offset by increases in gains recorded on the sale of the guaranteed portion of SBA 7(a) loans totaling $81 thousand and a favorable variance of $61 thousand related to mark-to-market adjustments on investments related to the Company’s nonqualified deferred compensation plan when compared to the fourth quarter of 2022.

Non-interest expense increased $105 thousand or 1.4% during the fourth quarter of 2023 compared to the fourth quarter of 2022 primarily due to increases in salaries and employee benefits, increases in FDIC insurance expense and increases in franchise tax expense. The increase in salaries and employee benefits was due to higher incentive compensation expense incurred by the Company. Incentive compensation accruals can fluctuate materially from quarter to quarter, based upon the Company’s financial performance and conditions measured against, among other evaluation criteria, our strategic plan and budget. At the end of each year, the ultimate determination of the incentive compensation is approved by the Board of Directors. For the twelve months ended December 31, 2023, the percentage decrease in incentive compensation was commensurate with the percentage decrease in core income before taxes (Non-GAAP, see below for further detail). The increase in FDIC insurance expense resulted from the FDIC increasing the base assessment rate for all insured depository institutions. The increase in franchise tax expense was due to an increase in the Bank’s equity as that is the basis the Commonwealth of Virginia uses to assess taxes on banking institutions. The decrease in furniture and equipment expense was due to lower software and equipment service expense due to contract renegotiation efforts. The decrease in occupancy expense of premises was due to a decrease in office rent as a result of the renegotiation of certain leases. The Company continues to analyze cost savings opportunities on existing leases and material contracts.

For the three months ended December 31, 2023, annualized non-interest expense to average assets was 1.31% compared to 1.27% for the three months ended December 31, 2022. The increase was primarily due to lower average assets when comparing the two periods.

For the three months ended December 31, 2023, the annualized efficiency ratio was 59.7% compared to 40.9% for the three months ended December 31, 2022. The increase was primarily due to a decrease in net interest income.

Year-to-Date Results

The Company reported net income of $5.2 million for the twelve months ended December 31, 2023, a decrease of $26.6 million when compared to the same period in 2022. This decrease was primarily attributable to the Restructuring, as previously discussed, that resulted in an after-tax loss of $14.6 million. Core net income (Non-GAAP) defined as reported net income excluding the non-recurring after-tax loss on securities sale and taxes paid in conjunction with the surrender of the Bank’s BOLI policies resulting from the Restructuring, was $19.8 million, a decrease of $12.0 million when compared to the twelve months ended December 31, 2022. Reported (GAAP) and core (Non-GAAP) earnings per share, annualized return on average assets (“ROAA”) and annualized return on average equity (“ROAE”) were as follows:

 

 

 

 

 

 

 

 

 

 

For the Twelve Months Ended

 

(Dollars in thousands, except per share amounts)

 

December 31, 2023

 

December 31, 2022

 

Net income (GAAP)

 

$

5,158

 

$

31,803

 

Add: Loss on securities sale, net of tax

 

 

13,520

 

 

-

 

Add: Non-recurring tax and 10% modified endowment contract penalty on early surrender of BOLI policies

 

 

1,101

 

 

-

 

Core net income (Non-GAAP)

 

$

19,779

 

$

31,803

 

Earnings per share - diluted (GAAP)

 

$

0.36

 

$

2.25

 

Core earnings per share - diluted (Non-GAAP)

 

$

1.39

 

$

2.25

 

Return on average assets (GAAP)

 

 

0.22

%

 

1.40

%

Core return on average assets (Non-GAAP)

 

 

0.85

%

 

1.40

%

Return on average equity (GAAP)

 

 

2.32

%

 

15.18

%

Core return on average equity (Non-GAAP)

 

 

8.91

%

 

15.18

%

Refer to “Explanation of Non-GAAP Measures” and the “Reconciliation of Certain Non-GAAP Financial Measures” table for further details about financial measures used in this release that were determined by methods other than in accordance with GAAP.

Net interest income for the twelve months ended December 31, 2023 decreased $19.9 million or 28.3% compared to the same period of 2022, driven primarily by the increase in costs of interest-bearing liabilities outpacing the increase in yield on interest-earning assets. The yield on interest earning assets was 4.41% for the twelve months ended December 31, 2023 compared to 3.77% for the same period in 2022. The increase in yield on interest earning assets was primarily due to higher yields on the Company’s loan and investment portfolios and deposits in banks as a result of increases in interest rates subsequent to the third quarter of 2022. The cost of interest-bearing liabilities was 3.08% for the twelve months ended December 31, 2023 compared to 0.89% for the twelve months ended December 31, 2022. The increase in the cost of interest-bearing liabilities was primarily due to a 2.21% 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 money market, NOW and savings deposit accounts since the fourth quarter of 2022. The annualized net interest margin for the twelve months ended December 31, 2023 was 2.22% as compared to 3.16% for the same period in the prior year. The decrease in net interest margin was primarily due to the increase in cost of interest-bearing deposits, which was partially offset by an increase in yields on the Company’s interest-earning assets.

The Company recorded a $3.3 million release of provision for credit losses for the twelve months ended December 31, 2023 compared to $175 thousand provision for the twelve months ended December 31, 2022. The release of provision for credit losses during 2023 was primarily a result of changes in the Company’s loss driver analysis, resulting from a periodic review of our assumptions and improved economic forecasts used in the quantitative portion of the model and assessment of management’s considerations of existing economic versus historical conditions combined with the continued strong credit performance of our loan portfolio segments.

Non-interest income decreased $16.6 million during the twelve months ended December 31, 2023 compared to the same period in 2022. The decrease in non-interest income was primarily due to the Restructuring that resulted in a loss of $17.1 million. Core non-interest income (Non-GAAP) increased $483 thousand primarily due to favorable variances of $671 thousand as a result of mark-to-market adjustments on investments related to the Company’s nonqualified deferred compensation plan. The Company also had an increase in other service charges and fee income of $182 thousand primarily as a result of penalty fee income recognized on the early withdrawal of certificates of deposit, and gains recorded on the sale of the guaranteed portion of SBA 7(a) loans totaling $131 thousand. These increases were partially offset by a decrease in BOLI income of $320 thousand due to the surrender of all BOLI policies as part of the Restructuring.

Non-interest expense decreased $1.1 million or 3.3% during the twelve months ended December 31, 2023 compared to the same period in 2022 primarily due to decreases in salaries and employee benefits expense. The decrease in salaries and employee benefits was primarily due to a reduction in incentive related compensation accruals year-over-year. The decrease in other expense was the result of a favorable verdict received by the Company on a multi-year legal matter that was resolved during the year and lower legal and consulting expenses, partially offset by increases in FDIC insurance expense, franchise tax expense and marketing expense. The increase in FDIC insurance expense resulted from the FDIC increasing the base assessment rate for all insured depository institutions. The increase in franchise tax expense was due to an increase in the Bank’s equity as that is the basis the Commonwealth of Virginia uses to assess taxes on banking institutions. The increase in marketing expense was due to increased marketing and promotional activity. The decrease in occupancy expense of premises was due to a decrease in office rent as a result of the renegotiation of certain leases. The decrease in furniture and equipment expense was due to lower depreciation expense on fixed assets and lower software and equipment service expense due to contract renegotiation efforts.

For the twelve months ended December 31, 2023, annualized non-interest expense to average assets was 1.33% compared to 1.40% for the twelve months ended December 31, 2022. The decrease was primarily due to lower overhead costs as a result of continued cost consciousness.

For the twelve months ended December 31, 2023, the efficiency ratio was 86.7% primarily due to the non-recurring securities loss on sale recorded in connection with the Restructuring. Excluding the effects of the Restructuring, the core efficiency ratio (Non-GAAP) was 58.5% compared to 44.2% for the twelve months ended December 31, 2022. The increase was primarily due to a decrease in net interest income, which more than offset the increase in core non-interest income (Non-GAAP) and decrease in non-interest expense.

Explanation of Non-GAAP Financial Measures

This release contains financial information determined by methods other than in accordance with GAAP. Management believes that the supplemental non-GAAP information provides a better comparison of the impact of unrealized losses in the Company’s bond portfolio on the Bank’s regulatory capital ratios and period-to-period operating performance, respectively. Additionally, the Company believes this information is utilized by regulators and market analysts to evaluate a company’s financial condition and therefore, such information is useful to investors. Non-GAAP measures used in this release consist of the following:

  • The Adjusted Bank regulatory capital ratios in the hypothetical scenario where the entire bond portfolio was sold at fair market value and the losses realized.
  • Core non-interest income, core income before taxes, core income tax expense, core net income, core earnings per share (basic and diluted), core return on average assets, core return on average equity, core non-interest income as a percentage of average assets and core efficiency ratio, which excludes the impact of losses recognized in the Restructuring.

These disclosures should not be viewed as a substitute for financial results in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures which may be presented by other companies. Please refer to the Reconciliation of Certain Non-GAAP Financial Measures table for a reconciliation of these non-GAAP measures to the most directly comparable GAAP measure.

About John Marshall Bancorp, Inc.

John Marshall Bancorp, Inc. is the bank holding company for John Marshall Bank. The Bank is headquartered in Reston, Virginia with eight full-service branches located in Alexandria, Arlington, Loudoun, Prince William, Reston, and Tysons, Virginia, as well as Rockville, Maryland, and Washington, D.C. The Bank is dedicated to providing exceptional value, personalized service and convenience to local businesses and professionals in the Washington D.C. Metro area. The Bank offers a comprehensive line of sophisticated banking products and services that rival those of the largest banks along with experienced staff to help achieve customers’ financial goals. Dedicated Relationship Managers serve as direct points-of-contact, providing subject matter expertise in a variety of niche industries including Charter and Private Schools, Government Contractors, Health Services, Nonprofits and Associations, Professional Services, Property Management Companies and Title Companies. Learn more at www.johnmarshallbank.com.

In addition to historical information, this press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are based on certain assumptions and describe future plans, strategies and expectations of the Company. These forward-looking statements are generally identified by use of the words “believe,” “expect,” “intend,” “anticipate,” “estimate,” “project,” “will,” “should,” “may,” “view,” “opportunity,” “potential,” or similar expressions or expressions of confidence. Our ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on the operations of the Company and the Bank include, but are not limited to, the following: the concentration of our business in the Washington, D.C. metropolitan area and the effect of changes in the economic, political and environmental conditions on this market; adequacy of our allowance for credit losses; deterioration of our asset quality; future performance of our loan portfolio with respect to recently originated loans; the level of prepayments on loans and mortgage-backed securities; liquidity, interest rate and operational risks associated with our business; changes in our financial condition or results of operations that reduce capital; our ability to maintain existing deposit relationships or attract new deposit relationships; changes in consumer spending, borrowing and savings habits; inflation and changes in interest rates that may reduce our margins or reduce the fair value of financial instruments; changes in the monetary and fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System; additional risks related to new lines of business, products, product enhancements or services; increased competition with other financial institutions and fintech companies; adverse changes in the securities markets; changes in the financial condition or future prospects of issuers of securities that we own; our ability to maintain an effective risk management framework; changes in laws or government regulations or policies affecting financial institutions, including changes in regulatory structure and in regulatory fees and capital requirements; compliance with legislative or regulatory requirements; results of examination of us by our regulators, including the possibility that our regulators may require us to increase our allowance for credit losses or to write-down assets or take similar actions; potential claims, damages, and fines related to litigation or government actions; the effectiveness of our internal controls over financial reporting and our ability to remediate any future material weakness in our internal controls over financial reporting; geopolitical conditions, including acts or threats of terrorism and/or military conflicts, or actions taken by the U.S. or other governments in response to acts or threats of terrorism and/or military conflicts, negatively impacting business and economic conditions in the U.S. and abroad; the effects of weather-related or natural disasters, which may negatively affect our operations and/or our loan portfolio and increase our cost of conducting business; public health events (such as COVID-19), and of governmental and societal responses thereto; technological risks and developments, and cyber threats, attacks, or events; the additional requirements of being a public company; changes in accounting policies and practices; our ability to successfully capitalize on growth opportunities; our ability to retain key employees; deteriorating economic conditions, either nationally or in our market area, including higher unemployment and lower real estate values; implications of our status as a smaller reporting company and as an emerging growth company; and other factors discussed in the Company’s reports (such as our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K) filed with the Securities and Exchange Commission. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. The Company does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions which may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events. Annualized, pro forma, projected and estimated numbers are used for illustrative purpose only, are not forecasts and may not reflect actual results.

 

 

 

 

 

 

 

 

 

 

 

 

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 Twelve Months Ended

 

 

 

December 31,

 

December 31,

 

 

 

2023

2022

 

2023

2022

 

Selected Balance Sheet Data

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

99,005

 

$

61,599

 

$

99,005

 

$

61,599

 

Total investment securities

 

 

273,302

 

 

463,531

 

 

273,302

 

 

463,531

 

Loans, net of unearned income

 

 

1,859,967

 

 

1,789,508

 

 

1,859,967

 

 

1,789,508

 

Allowance for loan credit losses

 

 

19,543

 

 

20,208

 

 

19,543

 

 

20,208

 

Total assets

 

 

2,242,549

 

 

2,348,235

 

 

2,242,549

 

 

2,348,235

 

Non-interest bearing demand deposits

 

 

411,374

 

 

476,697

 

 

411,374

 

 

476,697

 

Interest bearing deposits

 

 

1,495,226

 

 

1,591,043

 

 

1,495,226

 

 

1,591,043

 

Total deposits

 

 

1,906,600

 

 

2,067,740

 

 

1,906,600

 

 

2,067,740

 

Federal funds purchased

 

 

10,000

 

 

25,500

 

 

10,000

 

 

25,500

 

Federal Reserve Bank borrowings

 

 

54,000

 

 

- -

 

 

54,000

 

 

- -

 

Shareholders' equity

 

 

229,914

 

 

212,800

 

 

229,914

 

 

212,800

 

 

 

 

 

 

 

 

 

 

 

 

 

Summary Results of Operations

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

26,598

 

$

23,557

 

$

100,770

 

$

84,066

 

Interest expense

 

 

14,571

 

 

6,052

 

 

50,286

 

 

13,645

 

Net interest income

 

 

12,027

 

 

17,505

 

 

50,484

 

 

70,421

 

Provision for (recovery of) credit losses

 

 

(781

)

 

175

 

 

(3,252

)

 

175

 

Net interest income after provision for (recovery of) credit losses

 

 

12,808

 

 

17,330

 

 

53,736

 

 

70,246

 

Non-interest income (loss)

 

 

624

 

 

718

 

 

(14,940

)

 

1,691

 

Core non-interest income(1)

 

 

624

 

 

718

 

 

2,174

 

 

1,691

 

Non-interest expense

 

 

7,554

 

 

7,449

 

 

30,815

 

 

31,874

 

Income before income taxes

 

 

5,878

 

 

10,599

 

 

7,981

 

 

40,063

 

Core income before income taxes(1)

 

 

5,878

 

 

10,599

 

 

25,095

 

 

40,063

 

Net income

 

 

4,502

 

 

8,202

 

 

5,158

 

 

31,803

 

Core net income(1)

 

 

4,502

 

 

8,202

 

 

19,779

 

 

31,803

 

 

 

 

 

 

 

 

 

 

 

 

 

Per Share Data and Shares Outstanding

 

 

 

 

Earnings per share - basic

 

$

0.32

 

$

0.58

 

$

0.36

 

$

2.27

 

Core earnings per share - basic(1)

 

$

0.32

 

$

0.58

 

$

1.40

 

$

2.27

 

Earnings per share - diluted

 

$

0.32

 

$

0.58

 

$

0.36

 

$

2.25

 

Core earnings per share - diluted(1)

 

$

0.32

 

$

0.58

 

$

1.39

 

$

2.25

 

Book value per share

 

$

16.25

 

$

15.09

 

$

16.25

 

$

15.09

 

Weighted average common shares (basic)

 

 

14,082,762

 

 

14,019,429

 

 

14,115,492

 

 

13,931,841

 

Weighted average common shares (diluted)

 

 

14,145,607

 

 

14,131,352

 

 

14,185,760

 

 

14,084,427

 

Common shares outstanding at end of period

 

 

14,148,533

 

 

14,098,986

 

 

14,148,533

 

 

14,099,879

 

 

 

 

 

 

 

 

 

 

 

 

 

Performance Ratios

 

 

 

 

 

 

 

 

 

 

 

Return on average assets (annualized)

 

 

0.78

%

 

1.40

%

 

0.22

%

 

1.40

%

Core return on average assets (annualized)(1)

 

 

0.78

%

 

1.40

%

 

0.85

 

1.40

Return on average equity (annualized)

 

 

7.91

%

 

15.65

%

 

2.32

%

 

15.18

%

Core return on average equity (annualized)(1)

 

 

7.91

 

15.65

 

8.91

 

15.18

Net interest margin

 

 

2.12

%

 

3.05

%

 

2.22

%

 

3.16

%

Non-interest income (loss) as a percentage of average assets (annualized)

 

 

0.11

%

 

0.12

%

 

(0.64

)%

 

0.07

%

Core non-interest income as a percentage of average assets (annualized)(1)

 

 

0.11

 

0.12

 

0.09

 

0.07

Non-interest expense to average assets (annualized)

 

 

1.31

%

 

1.27

%

 

1.33

%

 

1.40

%

Efficiency ratio

 

 

59.7

%

 

40.9

%

 

86.7

%

 

44.2

%

Core efficiency ratio(1)

 

 

59.7

%

 

40.9

%

 

58.5

%

 

44.2

%

 

 

 

 

 

 

 

 

 

 

 

 

Asset Quality

 

 

 

 

 

 

 

 

 

 

 

Non-performing assets to total assets

 

 

- -

%

 

- -

%

 

- -

%

 

- -

%

Non-performing loans to total loans

 

 

- -

%

 

- -

%

 

- -

%

 

- -

%

Allowance for loan credit losses to non-performing loans

 

 

N/M

 

 

N/M

 

 

N/M

 

 

N/M

 

Allowance for loan credit losses to total loans

 

 

1.05

%

 

1.13

%

 

1.05

%

 

1.13

%

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

 

 

0.00

%

 

0.00

%

 

0.00

%

 

0.00

%

 

 

 

 

 

 

 

 

 

 

 

 

Loans 30-89 days past due and accruing interest

 

$

- -

 

$

- -

 

$

- -

 

$

- -

 

Non-accrual loans

 

 

- -

 

 

- -

 

 

- -

 

 

- -

 

Other real estate owned

 

 

- -

 

 

- -

 

 

- -

 

 

- -

 

Non-performing assets (2)

 

 

- -

 

 

- -

 

 

- -

 

 

- -

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Ratios (Bank Level)

 

 

 

 

 

 

 

 

 

 

 

Equity / assets

 

 

11.1

%

 

10.0

%

 

11.1

%

 

10.0

%

Total risk-based capital ratio

 

 

15.7

%

 

15.6

%

 

15.7

%

 

15.6

%

Tier 1 risk-based capital ratio

 

 

14.7

%

 

14.4

%

 

14.7

%

 

14.4

%

Common equity tier 1 ratio

 

 

14.7

%

 

11.3

%

 

14.7

%

 

11.3

%

Leverage ratio

 

 

11.6

%

 

14.4

%

 

11.6

%

 

14.4

%

 

 

 

 

 

 

 

 

 

 

 

 

Other Information

 

 

 

 

 

 

 

 

 

 

 

Number of full time equivalent employees

 

 

134

 

 

139

 

 

134

 

 

139

 

# Full service branch offices

 

 

8

 

 

8

 

 

8

 

 

8

 

# Loan production or limited service branch offices

 

 

- -

 

 

1

 

 

- -

 

 

1

 

____________________

(1)

Non-GAAP financial measure. Refer to “Reconciliation of Certain Non-GAAP Financial Measures” for further details.

(2)

Non-performing assets consist of non-accrual loans, loans 90 days or more past due and still accruing interest and other real estate owned.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

John Marshall Bancorp, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Balance Sheets

(Dollar amounts in thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% Change

 

 

December 31,

 

September 30,

 

December 31,

 

Last Three

 

Year Over

 

 

2023

 

2023

2022

 

Months

 

Year

Assets

 

(Unaudited)

 

(Unaudited)

 

*

 

 

 

 

Cash and due from banks

 

$

7,424

 

 

$

7,642

 

 

$

6,583

 

 

(2.9

)%

 

12.8

%

Interest-bearing deposits in banks

 

 

91,581

 

 

 

185,014

 

 

 

55,016

 

 

(50.5

)%

 

66.5

%

Securities available-for-sale, at fair value

 

 

169,993

 

 

 

169,084

 

 

 

357,576

 

 

0.5

%

 

(52.5

)%

Securities held-to-maturity, fair value of $79,532, $75,733, and $81,161 at 12/31/2023, 9/30/2023, and 12/31/2022, respectively.

 

 

95,505

 

 

 

96,347

 

 

 

99,415

 

 

(0.9

)%

 

(3.9

)%

Restricted securities, at cost

 

 

5,012

 

 

 

5,007

 

 

 

4,425

 

 

0.1

%

 

13.3

%

Equity securities, at fair value

 

 

2,792

 

 

 

2,443

 

 

 

2,115

 

 

14.3

%

 

32.0

%

Loans, net of unearned income

 

 

1,859,967

 

 

 

1,820,132

 

 

 

1,789,508

 

 

2.2

%

 

3.9

%

Allowance for credit losses

 

 

(19,543

)

 

 

(20,036

)

 

 

(20,208

)

 

(2.5

)%

 

(3.3

)%

Net loans

 

 

1,840,424

 

 

 

1,800,096

 

 

 

1,769,300

 

 

2.2

%

 

4.0

%

Bank premises and equipment, net

 

 

1,281

 

 

 

1,264

 

 

 

1,219

 

 

1.3

%

 

5.1

%

Accrued interest receivable

 

 

6,110

 

 

 

5,701

 

 

 

5,531

 

 

7.2

%

 

10.5

%

Bank owned life insurance

 

 

- -

 

 

 

- -

 

 

 

21,170

 

 

N/M

 

 

(100.0

)%

Right of use assets

 

 

4,176

 

 

 

4,136

 

 

 

4,611

 

 

1.0

%

 

(9.4

)%

Other assets

 

 

18,251

 

 

 

21,468

 

 

 

21,274

 

 

(15.0

)%

 

(14.2

)%

Total assets

 

$

2,242,549

 

 

$

2,298,202

 

 

$

2,348,235

 

 

(2.4

)%

 

(4.5

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Shareholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest bearing demand deposits

 

$

411,374

 

 

$

437,880

 

 

$

476,697

 

 

(6.1

)%

 

(13.7

)%

Interest-bearing demand deposits

 

 

607,971

 

 

 

675,819

 

 

 

691,945

 

 

(10.0

)%

 

(12.1

)%

Savings deposits

 

 

52,061

 

 

 

57,408

 

 

 

95,241

 

 

(9.3

)%

 

(45.3

)%

Time deposits

 

 

835,194

 

 

 

810,516

 

 

 

803,857

 

 

3.0

%

 

3.9

%

Total deposits

 

 

1,906,600

 

 

 

1,981,623

 

 

 

2,067,740

 

 

(3.8

)%

 

(7.8

)%

Federal funds purchased

 

 

10,000

 

 

 

- -

 

 

 

25,500

 

 

N/M

%

 

(60.8

)%

Federal Reserve Bank borrowings

 

 

54,000

 

 

 

54,000

 

 

 

- -

 

 

-

 

 

N/M

 

Subordinated debt, net

 

 

24,708

 

 

 

24,687

 

 

 

24,624

 

 

0.1

%

 

0.3

%

Accrued interest payable

 

 

4,559

 

 

 

2,610

 

 

 

1,035

 

 

74.7

%

 

340.5

%

Lease liabilities

 

 

4,446

 

 

 

4,415

 

 

 

4,858

 

 

0.7

%

 

(8.5

)%

Other liabilities

 

 

8,322

 

 

 

10,300

 

 

 

11,678

 

 

(19.2

)%

 

(28.7

)%

Total liabilities

 

 

2,012,635

 

 

 

2,077,635

 

 

 

2,135,435

 

 

(3.1

)%

 

(5.8

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

- -

 

 

 

- -

 

 

 

- -

 

 

N/M

 

 

N/M

 

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

 

 

- -

 

 

 

- -

 

 

 

- -

 

 

N/M

 

 

N/M

 

Common stock, voting, par value $0.01 per share; authorized 30,000,000 shares; issued and outstanding, 14,148,533 at 12/31/2023 including 47,318 unvested shares, issued and outstanding, 14,126,084 at 9/30/2023 including 45,871 unvested shares, and 14,098,986 at 12/31/2022 including 55,185 unvested shares

 

 

141

 

 

 

141

 

 

 

141

 

 

- -

%

 

- -

%

Additional paid-in capital

 

 

95,636

 

 

 

95,510

 

 

 

94,726

 

 

0.1

%

 

1.0

%

Retained earnings

 

 

146,388

 

 

 

141,886

 

 

 

146,630

 

 

3.2

%

 

(0.2

)%

Accumulated other comprehensive loss

 

 

(12,251

)

 

 

(16,970

)

 

 

(28,697

)

 

(27.8

)%

 

(57.3

)%

Total shareholders' equity

 

 

229,914

 

 

 

220,567

 

 

 

212,800

 

 

4.2

%

 

8.0

%

Total liabilities and shareholders' equity

 

$

2,242,549

 

 

$

2,298,202

 

 

$

2,348,235

 

 

(2.4

)%

 

(4.5

)%

* Derived from audited consolidated financial statements.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

John Marshall Bancorp, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Statements of Income

(Dollar amounts in thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

Twelve Months Ended

 

 

 

 

December 31

 

 

 

December 31

 

 

 

 

2023

 

2022

 

% Change

 

2023

 

2022

 

% Change

 

 

(Unaudited)

 

(Unaudited)

 

 

 

(Unaudited)

 

(Unaudited)

 

 

Interest and Dividend Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and fees on loans

 

$

23,080

 

 

$

20,541

 

12.4

%

 

$

86,435

 

 

$

74,281

 

 

16.4

%

Interest on investment securities, taxable

 

 

1,310

 

 

 

2,337

 

(43.9

)%

 

 

7,206

 

 

 

7,934

 

 

(9.2

)%

Interest on investment securities, tax-exempt

 

 

9

 

 

 

30

 

(70.0

)%

 

 

53

 

 

 

120

 

 

(55.8

)%

Dividends

 

 

78

 

 

 

64

 

21.9

%

 

 

300

 

 

 

249

 

 

20.5

%

Interest on deposits in other banks

 

 

2,121

 

 

 

585

 

N/M

 

 

 

6,776

 

 

 

1,482

 

 

N/M

 

Total interest and dividend income

 

 

26,598

 

 

 

23,557

 

12.9

%

 

 

100,770

 

 

 

84,066

 

 

19.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

13,577

 

 

 

5,688

 

N/M

 

 

 

47,168

 

 

 

11,778

 

 

N/M

 

Federal funds purchased

 

 

5

 

 

 

15

 

N/M

 

 

 

15

 

 

 

15

 

 

- -

%

Federal Home Loan Bank advances

 

 

- -

 

 

 

- -

 

N/M

 

 

 

67

 

 

 

42

 

 

59.5

%

Federal Reserve Bank borrowings

 

 

640

 

 

 

- -

 

N/M

 

 

 

1,640

 

 

 

- -

 

 

N/M

 

Subordinated debt

 

 

349

 

 

 

349

 

- -

%

 

 

1,396

 

 

 

1,810

 

 

(22.9

)%

Total interest expense

 

 

14,571

 

 

 

6,052

 

140.8

%

 

 

50,286

 

 

 

13,645

 

 

268.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

12,027

 

 

 

17,505

 

(31.3

)%

 

 

50,484

 

 

 

70,421

 

 

(28.3

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for (recovery of) Credit Losses

 

 

(781

)

 

 

175

 

N/M

 

 

 

(3,252

)

 

 

175

 

 

N/M

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income after provision for (recovery of) credit losses

 

 

12,808

 

 

 

17,330

 

(26.1

)%

 

 

53,736

 

 

 

70,246

 

 

(23.5

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

 

 

91

 

 

 

84

 

8.3

%

 

 

330

 

 

 

324

 

 

1.9

%

Bank owned life insurance

 

 

- -

 

 

 

99

 

(100.0

)%

 

 

224

 

 

 

544

 

 

(58.8

)%

Other service charges and fees

 

 

161

 

 

 

187

 

(13.9

)%

 

 

838

 

 

 

656

 

 

27.7

%

Losses on sale of available-for-sale securities

 

 

- -

 

 

 

- -

 

N/M

 

 

 

(17,316

)

 

 

- -

 

 

N/M

 

Insurance commissions

 

 

76

 

 

 

70

 

8.6

%

 

 

386

 

 

 

382

 

 

1.0

%

Gain on sale of government guaranteed loans

 

 

81

 

 

 

- -

 

N/M

 

 

 

131

 

 

 

- -

 

 

N/M

 

Non-qualified deferred compensation plan asset gains (losses), net

 

 

205

 

 

 

145

 

41.4

%

 

 

317

 

 

 

(354

)

 

N/M

 

Other income

 

 

10

 

 

 

133

 

(92.5

)%

 

 

150

 

 

 

139

 

 

7.9

%

Total non-interest income (loss)

 

 

624

 

 

 

718

 

(13.1

)%

 

 

(14,940

)

 

 

1,691

 

 

N/M

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

4,507

 

 

 

4,436

 

1.6

%

 

 

19,436

 

 

 

20,190

 

 

(3.7

)%

Occupancy expense of premises

 

 

448

 

 

 

458

 

(2.2

)%

 

 

1,811

 

 

 

1,893

 

 

(4.3

)%

Furniture and equipment expenses

 

 

296

 

 

 

336

 

(11.9

)%

 

 

1,178

 

 

 

1,325

 

 

(11.1

)%

Other expenses

 

 

2,303

 

 

 

2,219

 

3.8

%

 

 

8,390

 

 

 

8,466

 

 

(0.9

)%

Total non-interest expenses

 

 

7,554

 

 

 

7,449

 

1.4

%

 

 

30,815

 

 

 

31,874

 

 

(3.3

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

5,878

 

 

 

10,599

 

(44.5

)%

 

 

7,981

 

 

 

40,063

 

 

(80.1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Tax Expense

 

 

1,376

 

 

 

2,397

 

(42.6

)%

 

 

2,823

 

 

 

8,260

 

 

(65.8

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

4,502

 

 

$

8,202

 

(45.1

)%

 

$

5,158

 

 

$

31,803

 

 

(83.8

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings Per Share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.32

 

 

$

0.58

 

(44.8

)%

 

$

0.36

 

 

$

2.27

 

 

(84.2

)%

Diluted

 

$

0.32

 

 

$

0.58

 

(44.8

)%

 

$

0.36

 

 

$

2.25

 

 

(84.0

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

John Marshall Bancorp, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Historical Trends - Quarterly Financial Data (Unaudited)

(Dollar amounts in thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2023

 

2022

 

 

December 31

September 30

June 30

March 31

 

December 31

September 30

June 30

March 31

Profitability for the Quarter:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

26,598

 

$

26,263

 

$

24,455

 

$

23,453

 

 

$

23,557

 

$

21,208

 

$

19,555

 

$

19,745

 

Interest expense

 

 

14,571

 

 

14,284

 

 

12,446

 

 

8,984

 

 

 

6,052

 

 

3,516

 

 

2,247

 

 

1,829

 

Net interest income

 

 

12,027

 

 

11,979

 

 

12,009

 

 

14,469

 

 

 

17,505

 

 

17,692

 

 

17,308

 

 

17,916

 

Provision for (recovery of) credit losses

 

 

(781

)

 

(829

)

 

(868

)

 

(774

)

 

 

175

 

 

- -

 

 

- -

 

 

- -

 

Non-interest income (loss)

 

 

624

 

 

(16,815

)

 

685

 

 

566

 

 

 

718

 

 

450

 

 

109

 

 

414

 

Non-interest expenses

 

 

7,554

 

 

7,660

 

 

7,831

 

 

7,770

 

 

 

7,449

 

 

7,958

 

 

7,681

 

 

8,786

 

Income (loss) before income taxes

 

 

5,878

 

 

(11,667

)

 

5,731

 

 

8,039

 

 

 

10,599

 

 

10,184

 

 

9,736

 

 

9,544

 

Income tax expense (benefit)

 

 

1,376

 

 

(1,530

)

 

1,241

 

 

1,735

 

 

 

2,397

 

 

2,139

 

 

1,854

 

 

1,870

 

Net income (loss)

 

$

4,502

 

$

(10,137

)

$

4,490

 

$

6,304

 

 

$

8,202

 

$

8,045

 

$

7,882

 

$

7,674

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Performance:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets (annualized)

 

 

0.78

%

 

(1.73

)%

 

0.77

%

 

1.10

%

 

 

1.40

%

 

1.38

%

 

1.41

%

 

1.40

%

Return on average equity (annualized)

 

 

7.91

%

 

(18.24

)%

 

8.13

%

 

11.83

%

 

 

15.65

%

 

15.07

%

 

15.28

%

 

14.76

%

Net interest margin

 

 

2.12

%

 

2.08

%

 

2.10

%

 

2.57

%

 

 

3.05

%

 

3.10

%

 

3.16

%

 

3.34

%

Non-interest income (loss) as a percentage of average assets (annualized)

 

 

0.11

%

 

(2.86

)%

 

0.12

%

 

0.10

%

 

 

0.12

%

 

0.08

%

 

0.02

%

 

0.08

%

Non-interest expense to average assets (annualized)

 

 

1.31

%

 

1.30

%

 

1.34

%

 

1.35

%

 

 

1.27

%

 

1.36

%

 

1.38

%

 

1.61

%

Efficiency ratio

 

 

59.7

%

 

(158.4

)%

 

61.7

%

 

51.7

%

 

 

40.9

%

 

43.9

%

 

44.1

%

 

47.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Per Share Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (loss) per share - basic

 

$

0.32

 

$

(0.72

)

$

0.32

 

$

0.45

 

 

$

0.58

 

$

0.57

 

$

0.56

 

$

0.55

 

Earnings (loss) per share - diluted

 

$

0.32

 

$

(0.72

)

$

0.32

 

$

0.44

 

 

$

0.58

 

$

0.57

 

$

0.56

 

$

0.55

 

Book value per share

 

$

16.25

 

$

15.61

 

$

15.50

 

$

15.63

 

 

$

15.09

 

$

14.37

 

$

14.80

 

$

14.68

 

Dividends declared per share

 

$

- -

 

$

- -

 

$

0.22

 

$

- -

 

 

$

- -

 

$

- -

 

$

- -

 

$

0.20

 

Weighted average common shares (basic)

 

 

14,082,762

 

 

14,080,026

 

 

14,077,658

 

 

14,067,047

 

 

 

14,019,429

 

 

13,989,414

 

 

13,932,256

 

 

13,783,034

 

Weighted average common shares (diluted)

 

 

14,145,607

 

 

14,080,026

 

 

14,143,253

 

 

14,156,724

 

 

 

14,131,352

 

 

14,108,286

 

 

14,085,160

 

 

13,991,692

 

Common shares outstanding at end of period

 

 

14,148,533

 

 

14,126,084

 

 

14,126,138

 

 

14,125,208

 

 

 

14,098,986

 

 

14,070,080

 

 

14,026,589

 

 

13,950,570

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

 

$

91

 

$

85

 

$

82

 

$

72

 

 

$

84

 

$

79

 

$

84

 

$

77

 

Bank owned life insurance

 

 

- -

 

 

23

 

 

101

 

 

100

 

 

 

99

 

 

255

 

 

95

 

 

95

 

Other service charges and fees

 

 

161

 

 

160

 

 

314

 

 

203

 

 

 

187

 

 

175

 

 

157

 

 

137

 

Losses on securities

 

 

- -

 

 

(17,114

)

 

- -

 

 

(202

)

 

 

- -

 

 

- -

 

 

- -

 

 

- -

 

Insurance commissions

 

 

76

 

 

54

 

 

50

 

 

206

 

 

 

70

 

 

47

 

 

44

 

 

221

 

Gain on sale of government guaranteed loans

 

 

81

 

 

27

 

 

23

 

 

- -

 

 

 

- -

 

 

- -

 

 

- -

 

 

- -

 

Non-qualified deferred compensation plan asset gains (losses), net

 

 

205

 

 

(60

)

 

83

 

 

89

 

 

 

144

 

 

(107

)

 

(274

)

 

(117

)

Other income

 

 

10

 

 

10

 

 

32

 

 

98

 

 

 

134

 

 

1

 

 

3

 

 

1

 

Total non-interest income (loss)

 

$

624

 

$

(16,815

)

$

685

 

$

566

 

 

$

718

 

$

450

 

$

109

 

$

414

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

$

4,507

 

$

5,052

 

$

4,965

 

$

4,912

 

 

$

4,436

 

$

5,072

 

$

4,655

 

$

6,027

 

Occupancy expense of premises

 

 

448

 

 

445

 

 

448

 

 

470

 

 

 

458

 

 

461

 

 

482

 

 

493

 

Furniture and equipment expenses

 

 

296

 

 

282

 

 

304

 

 

296

 

 

 

336

 

 

323

 

 

341

 

 

325

 

Other expenses

 

 

2,303

 

 

1,881

 

 

2,114

 

 

2,092

 

 

 

2,219

 

 

2,102

 

 

2,203

 

 

1,941

 

Total non-interest expenses

 

$

7,554

 

$

7,660

 

$

7,831

 

$

7,770

 

 

$

7,449

 

$

7,958

 

$

7,681

 

$

8,786

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance Sheets at Quarter End:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans, net of unearned income

 

$

1,859,967

 

$

1,820,132

 

$

1,769,801

 

$

1,771,272

 

 

$

1,789,508

 

$

1,725,114

 

$

1,692,652

 

$

1,631,260

 

Allowance for loan credit losses

 

 

(19,543

)

 

(20,036

)

 

(20,629

)

 

(21,619

)

 

 

(20,208

)

 

(20,032

)

 

(20,031

)

 

(20,031

)

Investment securities

 

 

273,302

 

 

272,881

 

 

429,954

 

 

445,785

 

 

 

463,531

 

 

473,478

 

 

473,914

 

 

409,692

 

Interest-earning assets

 

 

2,224,850

 

 

2,278,027

 

 

2,315,368

 

 

2,312,404

 

 

 

2,308,055

 

 

2,258,822

 

 

2,274,968

 

 

2,217,553

 

Total assets

 

 

2,242,549

 

 

2,298,202

 

 

2,364,250

 

 

2,351,307

 

 

 

2,348,235

 

 

2,305,540

 

 

2,316,374

 

 

2,249,609

 

Total deposits

 

 

1,906,600

 

 

1,981,623

 

 

2,046,309

 

 

2,088,642

 

 

 

2,067,740

 

 

2,063,341

 

 

2,043,741

 

 

1,983,099

 

Total interest-bearing liabilities

 

 

1,583,934

 

 

1,622,430

 

 

1,691,044

 

 

1,665,837

 

 

 

1,641,167

 

 

1,552,758

 

 

1,581,017

 

 

1,530,133

 

Total shareholders' equity

 

 

229,914

 

 

220,567

 

 

218,970

 

 

220,823

 

 

 

212,800

 

 

202,212

 

 

207,530

 

 

204,855

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarterly Average Balance Sheets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans, net of unearned income

 

$

1,837,855

 

$

1,790,720

 

$

1,767,831

 

$

1,772,922

 

 

$

1,759,747

 

$

1,684,796

 

$

1,641,914

 

$

1,620,533

 

Investment securities

 

 

273,264

 

 

310,407

 

 

441,778

 

 

463,254

 

 

 

468,956

 

 

488,860

 

 

447,688

 

 

376,608

 

Interest-earning assets

 

 

2,260,356

 

 

2,301,642

 

 

2,305,050

 

 

2,295,677

 

 

 

2,289,061

 

 

2,277,325

 

 

2,204,709

 

 

2,183,897

 

Total assets

 

 

2,280,060

 

 

2,331,403

 

 

2,344,712

 

 

2,334,695

 

 

 

2,330,307

 

 

2,314,825

 

 

2,240,119

 

 

2,216,131

 

Total deposits

 

 

1,956,039

 

 

2,012,934

 

 

2,051,702

 

 

2,066,139

 

 

 

2,079,161

 

 

2,057,640

 

 

1,980,231

 

 

1,946,882

 

Total interest-bearing liabilities

 

 

1,587,179

 

 

1,660,980

 

 

1,667,597

 

 

1,621,131

 

 

 

1,566,902

 

 

1,547,766

 

 

1,504,574

 

 

1,505,854

 

Total shareholders' equity

 

 

225,718

 

 

220,473

 

 

221,608

 

 

220,282

 

 

 

207,906

 

 

212,147

 

 

206,967

 

 

210,900

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Measures:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average equity to average assets

 

 

9.9

%

 

9.5

%

 

9.5

%

 

9.4

%

 

 

8.9

%

 

9.2

%

 

9.2

%

 

9.5

%

Investment securities to earning assets

 

 

12.3

%

 

12.0

%

 

18.6

%

 

19.3

%

 

 

20.1

%

 

21.0

%

 

20.8

%

 

18.5

%

Loans to earning assets

 

 

83.6

%

 

79.9

%

 

76.4

%

 

76.6

%

 

 

77.5

%

 

76.4

%

 

74.4

%

 

73.6

%

Loans to assets

 

 

82.9

%

 

79.2

%

 

74.9

%

 

75.3

%

 

 

76.2

%

 

74.8

%

 

73.1

%

 

72.5

%

Loans to deposits

 

 

97.6

%

 

91.9

%

 

86.5

%

 

84.8

%

 

 

86.5

%

 

83.6

%

 

82.8

%

 

82.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Ratios (Bank Level):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity / assets

 

 

11.1

%

 

10.6

%

 

10.2

%

 

10.3

%

 

 

10.0

%

 

9.7

%

 

9.9

%

 

10.2

%

Total risk-based capital ratio

 

 

15.7

%

 

15.7

%

 

16.1

%

 

16.1

%

 

 

15.6

%

 

15.4

%

 

15.1

%

 

15.4

%

Tier 1 risk-based capital ratio

 

 

14.7

%

 

14.6

%

 

15.0

%

 

14.9

%

 

 

14.4

%

 

14.3

%

 

14.0

%

 

14.2

%

Common equity tier 1 ratio

 

 

14.7

%

 

14.6

%

 

15.0

%

 

14.9

%

 

 

14.4

%

 

14.3

%

 

14.0

%

 

14.2

%

Leverage ratio

 

 

11.6

%

 

11.3

%

 

11.6

%

 

11.5

%

 

 

11.3

%

 

11.0

%

 

11.0

%

 

10.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

John Marshall Bancorp, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loan, Deposit and Borrowing Detail (Unaudited)

(Dollar amounts in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2023

 

 

2022

 

 

 

December 31

 

September 30

 

June 30

 

March 31

 

 

December 31

 

September 30

 

June 30

 

March 31

 

Loans

 

$ Amount

% of Total

 

$ Amount

% of Total

 

$ Amount

% of Total

 

$ Amount

% of Total

 

 

$ Amount

% of Total

 

$ Amount

% of Total

 

$ Amount

% of Total

 

$ Amount

% of Total

 

Commercial business loans

 

$

45,073

 

2.4

%

$

37,793

 

2.1

%

$

40,156

 

2.3

%

$

41,204

 

2.3

%

 

$

44,788

 

2.5

%

$

44,967

 

2.6

%

$

47,654

 

2.8

%

$

52,569

 

3.2

%

Commercial PPP loans

 

 

131

 

0.0

%

 

132

 

0.0

%

 

133

 

0.0

%

 

135

 

0.0

%

 

 

136

 

0.0

%

 

138

 

0.0

%

 

224

 

0.0

%

 

7,781

 

0.5

%

Commercial owner-occupied real estate loans

 

 

360,102

 

19.4

%

 

363,017

 

20.0

%

 

360,859

 

20.4

%

 

363,495

 

20.6

%

 

 

366,131

 

20.5

%

 

362,346

 

21.1

%

 

378,457

 

22.4

%

 

339,933

 

20.9

%

Total business loans

 

 

405,306

 

21.8

%

 

400,942

 

22.1

%

 

401,148

 

22.7

%

 

404,834

 

22.9

%

 

 

411,055

 

23.0

%

 

407,451

 

23.7

%

 

426,335

 

25.2

%

 

400,283

 

24.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

��

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investor real estate loans

 

 

689,556

 

37.1

%

 

683,686

 

37.6

%

 

654,623

 

37.0

%

 

660,740

 

37.4

%

 

 

662,769

 

37.1

%

 

622,415

 

36.1

%

 

598,501

 

35.5

%

 

553,093

 

34.0

%

Construction & development loans

 

 

180,922

 

9.8

%

 

179,570

 

9.9

%

 

179,656

 

10.2

%

 

179,606

 

10.2

%

 

 

195,027

 

11.0

%

 

199,324

 

11.6

%

 

189,644

 

11.2

%

 

219,160

 

13.4

%

Multi-family loans

 

 

96,458

 

5.2

%

 

86,366

 

4.8

%

 

86,061

 

4.9

%

 

88,670

 

5.0

%

 

 

89,227

 

5.0

%

 

106,460

 

6.2

%

 

106,236

 

6.3

%

 

99,100

 

6.1

%

Total commercial real estate loans

 

 

966,936

 

52.1

%

 

949,622

 

52.3

%

 

920,340

 

52.1

%

 

929,016

 

52.6

%

 

 

947,023

 

53.1

%

 

928,199

 

53.9

%

 

894,381

 

53.0

%

 

871,353

 

53.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage loans

 

 

482,182

 

26.1

%

 

464,509

 

25.7

%

 

443,305

 

25.2

%

 

433,076

 

24.5

%

 

 

426,841

 

23.9

%

 

385,696

 

22.4

%

 

368,370

 

21.8

%

 

356,331

 

21.9

%

Consumer loans

 

 

560

 

0.0

%

 

467

 

0.0

%

 

646

 

0.0

%

 

324

 

0.0

%

 

 

529

 

0.0

%

 

585

 

0.0

%

 

651

 

0.0

%

 

513

 

0.0

%

Total loans

 

$

1,854,984

 

100.0

%

$

1,815,540

 

100.0

%

$

1,765,439

 

100.0

%

$

1,767,250

 

100.0

%

 

$

1,785,448

 

100.0

%

$

1,721,931

 

100.0

%

$

1,689,737

 

100.0

%

$

1,628,480

 

100.0

%

Less: Allowance for loan credit losses

 

 

(19,543

)

 

 

 

(20,036

)

 

 

 

(20,629

)

 

 

 

(21,619

)

 

 

 

 

(20,208

)

 

 

 

(20,032

)

 

 

 

(20,031

)

 

 

 

(20,031

)

 

 

Net deferred loan costs (fees)

 

 

4,983

 

 

 

 

4,592

 

 

 

 

4,362

 

 

 

 

4,022

 

 

 

 

 

4,060

 

 

 

 

3,183

 

 

 

 

2,915

 

 

 

 

2,780

 

 

 

Net loans

 

$

1,840,424

 

 

 

$

1,800,096

 

 

 

$

1,749,172

 

 

 

$

1,749,653

 

 

 

 

$

1,769,300

 

 

 

$

1,705,082

 

 

 

$

1,672,621

 

 

 

$

1,611,229

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2023

 

 

2022

 

 

 

December 31

 

September 30

 

June 30

 

March 31

 

 

 

December 31

 

September 30

 

June 30

 

March 31

 

Deposits

 

$ Amount

% of Total

 

$ Amount

% of Total

 

$ Amount

% of Total

 

$ Amount

% of Total

 

 

$ Amount

% of Total

 

$ Amount

% of Total

 

$ Amount

% of Total

 

$ Amount

% of Total

 

Non-interest bearing demand deposits

 

$

411,374

 

21.6

%

$

437,880

 

22.1

%

$

433,931

 

21.2

%

$

447,450

 

21.4

%

 

$

476,697

 

23.1

%

$

535,186

 

25.9

%

$

512,284

 

25.1

%

$

495,811

 

25.0

%

Interest-bearing demand deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOW accounts(1)

 

 

297,321

 

15.6

%

 

345,522

 

17.4

%

 

311,225

 

15.2

%

 

284,872

 

13.7

%

 

 

253,148

 

12.3

%

 

293,558

 

14.2

%

 

338,789

 

16.6

%

 

345,087

 

17.4

%

Money market accounts(1)

 

 

310,650

 

16.3

%

 

330,297

 

16.7

%

 

341,413

 

16.7

%

 

392,962

 

18.8

%

 

 

438,797

 

21.2

%

 

412,035

 

20.0

%

 

399,877

 

19.6

%

 

414,987

 

20.9

%

Savings accounts

 

 

52,061

 

2.8

%

 

57,408

 

3.0

%

 

68,013

 

3.4

%

 

81,150

 

3.9

%

 

 

95,241

 

4.6

%

 

102,909

 

5.0

%

 

112,276

 

5.4

%

 

114,427

 

5.8

%

Certificates of deposit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$250,000 or more

 

 

357,768

 

18.8

%

 

364,805

 

18.4

%

 

376,899

 

18.4

%

 

338,824

 

16.2

%

 

 

314,738

 

15.2

%

 

280,027

 

13.6

%

 

255,411

 

12.5

%

 

241,230

 

12.1

%

Less than $250,000

 

 

101,567

 

5.3

%

 

103,600

 

5.2

%

 

105,956

 

5.2

%

 

94,429

 

4.5

%

 

 

89,247

 

4.3

%

 

88,421

 

4.3

%

 

87,505

 

4.3

%

 

91,050

 

4.6

%

QwickRate® certificates of deposit

 

 

9,686

 

0.5

%

 

11,526

 

0.6

%

 

12,772

 

0.6

%

 

16,952

 

0.8

%

 

 

22,163

 

1.1

%

 

20,154

 

1.0

%

 

20,154

 

1.0

%

 

23,136

 

1.2

%

IntraFi® certificates of deposit

 

 

45,748

 

2.4

%

 

41,659

 

2.1

%

 

49,729

 

2.4

%

 

53,178

 

2.5

%

 

 

25,757

 

1.2

%

 

46,305

 

2.2

%

 

32,686

 

1.6

%

 

39,628

 

2.0

%

Brokered deposits

 

 

320,425

 

16.8

%

 

288,926

 

14.6

%

 

346,371

 

16.9

%

 

378,825

 

18.2

%

 

 

351,952

 

17.0

%

 

284,746

 

13.8

%

 

284,759

 

13.9

%

 

217,743

 

11.0

%

Total deposits

 

$

1,906,600

 

100.0

%

$

1,981,623

 

100.0

%

$

2,046,309

 

100.0

%

$

2,088,642

 

100.0

%

 

$

2,067,740

 

100.0

%

$

2,063,341

 

100.0

%

$

2,043,741

 

100.0

%

$

1,983,099

 

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Borrowings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Federal funds purchased

 

$

10,000

 

11.3

%

$

- -

 

0.0

%

$

- -

 

0.0

%

$

- -

 

0.0

%

 

$

25,500

 

50.9

%

$

- -

 

0.0

%

$

- -

 

0.0

%

$

- -

 

0.0

%

Federal Home Loan Bank advances

 

 

- -

 

0.0

%

 

- -

 

0.0

%

 

- -

 

0.0

%

 

- -

 

0.0

%

 

 

- -

 

0.0

%

 

- -

 

0.0

%

 

- -

 

0.0

%

 

18,000

 

42.0

%

Federal Reserve Bank borrowings

 

 

54,000

 

60.9

%

 

54,000

 

68.6

%

 

54,000

 

68.6

%

 

- -

 

0.0

 

 

 

- -

 

0.0

%

 

- -

 

0.0

%

 

- -

 

0.0

%

 

- -

 

0.0

%

Subordinated debt

 

 

24,708

 

27.9

%

 

24,687

 

31.4

%

 

24,666

 

31.4

%

 

24,645

 

100.0

%

 

 

24,624

 

49.1

%

 

24,603

 

100.0

%

 

49,560

 

100.0

%

 

24,845

 

58.0

%

Total borrowings

 

$

88,708

 

100.0

%

$

78,687

 

100.0

%

$

78,666

 

100.0

%

$

24,645

 

100.0

%

 

$

50,124

 

100.0

%

$

24,603

 

100.0

%

$

49,560

 

100.0

%

$

42,845

 

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total deposits and borrowings

 

$

1,995,308

 

 

 

$

2,060,310

 

 

 

$

2,124,975

 

 

 

$

2,113,287

 

 

 

 

$

2,117,864

 

 

 

$

2,087,944

 

 

 

$

2,093,301

 

 

 

$

2,025,944

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core customer funding sources (2)

 

$

1,576,489

 

80.0

%

$

1,681,171

 

82.6

%

$

1,687,166

 

80.3

%

$

1,692,865

 

81.1

%

 

$

1,693,625

 

80.9

%

$

1,758,441

 

85.2

%

$

1,738,828

 

85.1

%

$

1,742,220

 

87.1

%

Wholesale funding sources (3)

 

 

394,111

 

20.0

%

 

354,452

 

17.4

%

 

413,143

 

19.7

%

 

395,777

 

18.9

%

 

 

399,615

 

19.1

%

 

304,900

 

14.8

%

 

304,913

 

14.9

%