John Marshall Bancorp, Inc. Reports Mid-Year Financial Results

RESTON, Va.--()--John Marshall Bancorp, Inc. (OTCQB: JMSB) (the “Company”) reported net income of $2.7 million for the three months ended June 30, 2017, an increase of $278 thousand or 11.5%, as compared to net income of $2.4 million for the three months ended June 30, 2016. Net income per diluted share was $0.25 per share during the three months ending June 30, 2017, compared to $0.23 per diluted share during the same period in 2016.

The Company’s three month results produced an annualized return of 1.00% on average assets and 8.74% on average equity, compared to 1.03% and 8.71%, respectively, for the same period a year ago. As of June 30, 2017, the Company’s tangible book value per share was $12.19, up 8.5% compared to $11.24 as of June 30, 2016.

The Company reported net income of $5.2 million for the six months ended June 30, 2017, an increase of $2.2 million compared to $3.0 million for the six months ended June 30, 2016. In 2016, the lower earnings were attributable to loan loss provisions of $3.0 million for first six months of 2016, compared to $645 thousand for the first six months of 2017.

The Company’s capital ratios remain well above regulatory minimums for well capitalized banks. As of June 30, 2017, the Company’s total risk-based capital ratio was 12.3%, compared to 12.7% at June 30, 2016.

Balance Sheet Review

Total assets were $1.12 billion at June 30, 2017, $1.08 billion at December 31, 2016 and $975.6 million at June 30, 2016. During the first six months of 2017 assets increased $43.0 million, or 4.0%. Year-over-year asset growth, from June 30, 2016 to June 30, 2017, was $142.9 million, or 14.6%. Gross loans were $942.5 million at June 30, 2017, 896.0 million at December 31, 2016 and $819.7 million at June 30, 2016. During the first six months of 2017 gross loans increased $46.4 million, or 5.2%. Year-over-year gross loans increased $122.7 million, or 15.0% year-over-year, from June 30, 2016 to June 30, 2017. Year-over-year net loan growth was $121.8 million, or 15.0% from June 30, 2016 to June 30, 2017. The Company’s investment portfolio comprised of held-to-maturity, available-for-sale, and restricted securities, was $91.9 million at June 30, 2017, $100.3 million at December 31, 2016 and $95.5 million at June 30, 2016. As of June 30, 2017, the Company held $41.8 million of its investment portfolio as held-to-maturity, and $42.0 million as available-for-sale. At June 30, 2017, the estimated fair value of bank owned life insurance was $18.8 million, compared to $18.5 million at December 31, 2016 and $18.2 million at June 30, 2016.

Total deposits were $878.8 million at June 30, 2017, $832.9 million at December 31, 2016 and $762.3 million at June 30, 2016. . During the first six months of 2017 total deposits increased $46.0 million, or 5.5%. Year-over-year deposit growth, from June 30, 2016 to June 30, 2017, was $116.5 million, or 15.3%. Total borrowings, consisting of Federal Home Loan Bank advances and customer repurchase agreements, were $109.7 million at June 30, 2017, $118.2 million at December 31, 2016 and $95.4 million at June 30, 2016. During the first six months of 2017 borrowings decreased $8.5 million, or 7.2%. Year-over-year, from June 30, 2016 to June 30, 2017, total borrowings increased $14.4 million, or 15.1%.

QwickRate certificates of deposits were $22.4 million at June 30, 2017, $22.8 million at December 31, 2016 and $21.6 million at June 30, 2016. Year-over-year QwickRate certificates of deposits increased $832 thousand from June 30, 2016 to June 30, 2017. CDARs were $83.6 million at June 30, 2017, $71.8 million at December 31, 2016 and $69.5 million at June 30, 2016. Year-over-year CDARS increased $14.1 million. Brokered deposits were $43.0 million at June 30, 2017, $46.9 million at December 31, 2016 and $26.9 million at June 30, 2016. Year-over-year, brokered deposits increased $16.1 million from June 30, 2016 to June 30, 2017. Customer repurchase agreements were $2.7 million at June 30, 2017, $14.2 million at December 31, 2016 and $16.4 million at June 30, 2016. During the first quarter of 2017, the Company partnered with Promontory to offer insured cash sweep products (“ICS”). As of June 30, 2017, the Company had $60.9 million in ICS deposits. The declines in the customer repurchase agreements were part of an initiative and were mostly moved into ICS. Federal Home Loan Bank advances were $107.0 million at June 30, 2017, $104.0 million at December 31, 2016 and $79.0 million at June 30, 2016. Year-over-year Federal Home Loan Bank advances increased $28.0 million or 35.4%. Core customer funding was $816.1 million at June 30, 2017, $777.3 million at December 31, 2016 and $730.2 million at June 30, 2016. Year-over-year core customer funding sources increased by $85.9 million, or 11.8%, from June 30, 2016 to June 30, 2017.

Total shareholders’ equity was $124.8 million at June 30, 2017, $118.8 million at December 31, 2016 and $112.8 million at June 30, 2016. For the first six months of 2017, shareholders’ equity increased $6.1 million, or 5.1%. Year-over-year shareholders’ equity increased of $12.1 million, or 10.7%. Of the year-over-year increase in shareholders’ equity, $10.5 million is related to net income retained during the past twelve months. Total common shares outstanding increased from 10,031,349 at June 30, 2016 to 10,243,141, including 67,020 unvested shares, at June 30, 2017.

Subsequently, the Company completed a private placement of $25.0 million of fixed-to-floating subordinated notes on July 6, 2017. Unless redeemed earlier, the notes will mature on July 15, 2027. The notes bear a fixed rate of 5.75% for the first five years and will bear a floating rate equal to three-month LIBOR plus 388 basis points thereafter. The notes are intended to qualify as Tier 2 capital for the Company for regulatory purposes.

Income Statement Review

Net interest income

Net interest income, the Company’s primary source of revenue, was $10.1 million for the three months ended June 30, 2017, up 14.2% from $8.8 million for the three months ended June 30, 2016. The net interest margin was 3.82% during the second quarter of 2017, compared to 3.84% during the second quarter of 2016. For the six months ended June 30, 2017, net interest income was $19.7 million, up 12.7% from $17.4 million for the six months ended June 30, 2016. The net interest margin was 3.78% during the first six months of 2017, compared to 3.82% during the first six months of 2016. Despite the Federal Reserve increasing rates by 25 basis points in December 2016, March 2017 and June 2017, the margin declined only 2 basis points year-over-year for the three months ended June 30, 2017 and declined 4 basis points year-over-year for the six months ended June 30, 2017. The decline is mostly related to the higher cost of time deposits and other borrowed funds.

Notwithstanding the decline in the net interest margin over the past year, net interest income increased by 12.7% during the first six months of 2017, compared to the first six months of 2016, resulting primarily from a $130.2 million, or 14.2%, increase in average earning assets during the first six months of 2017, compared to the first six months of 2017.

Provision for loan losses

The Company recognized a provision for loan losses of $380 thousand during the second quarter of 2017, compared to a provision of $240 thousand during the second quarter of 2016. The Company reported $8 thousand in net loan recoveries during the second quarter of 2017 and no loan charge-offs during the second quarter of 2016.

During the first six months of 2017, the Company recognized a provision for loan losses of $645 thousand, compared to a provision of $3.0 million during the first six months of 2016. The Company reported $14 thousand in net loan recoveries during the first six months of 2017, compared to net loan charge-offs of $1.9 million during the first six months of 2016.

Noninterest income

The Company’s noninterest income consists primarily of bank owned life insurance income and service charges on deposit accounts. Loan fees are included in interest income on the loan portfolio and not reported as noninterest income.

For the three months ended June 30, 2017, the Company reported total noninterest income of $310 thousand, compared to $275 thousand during the second quarter of 2016. For the six months ended June 30, 2017, the Company reported total noninterest income of $658 thousand, compared to $470 thousand during the first six months of 2016, an increase of 40.0%. The year-over-year increase for both the three and six month periods ended June 30, 2017 was primarily attributable to gains on sales of securities during the first and second quarters of 2017.

Noninterest expense

The largest component of the Company’s noninterest expense is employee salaries and benefits. Salaries and benefits expense increased by 13.9%, to $3.5 million, during the second quarter of 2017 compared to $3.1 million during the second quarter of 2016. All other operating expenses increased by $231 thousand, or 11.0%, to $2.3 million during the second quarter of 2017, compared to $2.1 million during the second quarter of 2016.

During the first six months of 2017, salaries and employee benefits expense increased by 16.6%, to $7.2 million, compared to $6.1 million during the first six months of 2016. All other operating expenses increased by 7.2%, or $310 thousand, to $4.6 million, during the first six months of 2017, compared to $4.3 million during the first six months of 2016.

The increase in salaries and benefits is related to additional staff needed to support the loan and deposit growth of the Company. The increase in other operating expenses was mostly related to one-time expenses related to the formation of the Holding Company in March 2017 as well as higher FDIC insurance and franchise tax related to growth.

Asset Quality Review

As of June 30, 2017, non-performing assets were 0.30% of total assets, down from 0.34% at June 30, 2016. The Company’s allowance for loan losses covered non-performing loans by 2.6 times as of June 30, 2017, compared to 2.5 times as of June 30, 2016. In the first quarter of 2017, eight commercial loans relating to one customer relationship totaling $3.3 million were put on non-accrual. These loans are secured by real estate and a specific reserve of $451 thousand was recorded as of June 30, 2017.

As of June 30, 2017, there were $108 thousand in loans 30-89 days past due and still accruing interest As of June 30, 2016, there were $2.1 million in loans 30-89 days past due and still accruing interest.

Troubled debt restructurings were $501 thousand at June 30, 2017, a decrease of 2.5% from $514 thousand as of June 30, 2016. All troubled debt restructurings were performing in accordance with modified terms as of June 30, 2017. The Company had no other real estate owned as of June 30, 2017 and 2016.

John Marshall Bancorp, Inc. is the bank holding company for John Marshall Bank. John Marshall Bank is headquartered in Reston, Virginia and has five full-service branches located in Reston, Leesburg, Arlington, Alexandria and Rockville. The Bank also has a limited-service commercial branch located in Washington, DC and a loan production office located in Tysons Corner, VA. Further information on the Bank can be obtained by visiting its website at www.johnmarshallbank.com.

This press release contains forward-looking statements within the meaning of the Securities and Exchange Act of 1934, as amended, including statements of goals, intentions, and expectations as to future trends, plans, events or results of Company operations and policies and regarding general economic conditions. In some cases, forward-looking statements can be identified by use of words such as “may,” “will,” “anticipates,” “believes,” “expects,” “plans,” “estimates,” “potential,” “continue,” “should,” and similar words or phrases. These statements are based upon current and anticipated economic conditions, nationally and in the Company’s market, interest rates and interest rate policy, competitive factors, and other conditions which by their nature, are not susceptible to accurate forecast, and are subject to significant uncertainty. Because of these uncertainties and the assumptions on which this discussion and the forward-looking statements are based, actual future operations and results may differ materially from those indicated herein. Readers are cautioned against placing undue reliance on any such forward-looking statements. The Company’s past results are not necessarily indicative of future performance.

         
John Marshall Bancorp, Inc.
 
Consolidated Balance Sheets
(In thousands)
 
% Change
June 30, December 31, June 30, Last Six Year Over
  2017     2016     2016   Months Year
Assets (Unaudited) (Unaudited)
 
Cash and due from banks $ 9,998 $ 4,898 $ 6,830 104.1 % 46.4 %
Federal funds sold 60 60 - - 0.0 % N/M
Interest-bearing deposits in banks 49,390 49,717 30,593 -0.7 % 61.4 %
Securities available-for-sale, at fair value 42,006 48,312 42,112 -13.1 % -0.3 %

Securities held-to-maturity, fair value of $42,096 at 6/30/17, $44,067 at 12/31/16 and $47,760 at 6/30/16

41,791 44,073 46,706 -5.2 % -10.5 %
Restricted securities, at cost 8,071 7,873 6,695 2.5 % 20.6 %

Loans, net of allowance for loan losses of $8,861 at 6/30/17; $8,202 at 12/31/16 and $8,170 at 6/30/16

931,885 886,220 810,068 5.2 % 15.0 %
Bank premises and equipment, net 2,760 2,471 2,641 11.7 % 4.5 %
Accrued interest receivable 2,818 2,988 2,341 -5.7 % 20.4 %
Bank owned life insurance 18,814 18,540 18,214 1.5 % 3.3 %
Other assets   10,824     10,205     9,365   6.1 % 15.6 %
 
Total assets $ 1,118,417   $ 1,075,357   $ 975,565   4.0 % 14.6 %
 
Liabilities and Shareholders' Equity
 
Liabilities
Deposits:
Non-interest bearing demand deposits $ 167,920 $ 195,065 $ 144,377 -13.9 % 16.3 %
Interest bearing demand deposits 267,585 211,495 239,479 26.5 % 11.7 %
Savings deposits 7,436 6,856 7,659 8.5 % -2.9 %
Time deposits   435,893     419,449     370,817   3.9 % 17.5 %
Total deposits 878,834 832,865 762,332 5.5 % 15.3 %
Repurchase agreements 2,723 14,206 16,355 -80.8 % -83.4 %
Federal Home Loan Bank advances 107,000 104,000 79,000 2.9 % 35.4 %
Accrued interest payable 255 220 158 15.9 % 61.4 %
Other liabilities   4,760     5,271     4,947   -9.7 % -3.8 %
Total liabilities   993,572     956,562     862,792   3.9 % 15.2 %
 
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 at 6/30/17; par value $5 per share at 12/31/16 and 6/30/16; authorized 20,000,000 shares; issued and outstanding, 10,243,141 shares at 6/30/17 including 67,020 unvested shares, 10,137,149 at 12/31/16, and 10,031,349 shares at 6/30/16

102 50,686 50,157 -99.8 % -99.8 %
Additional paid-in capital 83,386 32,112 31,538 159.7 % 164.4 %
Retained earnings 41,669 36,454 31,139 14.3 % 33.8 %
Accumulated other comprehensive loss   (312 )   (457 )   (61 ) 31.7 % -411.5 %
 
Total shareholders' equity   124,845     118,795     112,773   5.1 % 10.7 %
 
Total liabilities and shareholders' equity $ 1,118,417   $ 1,075,357   $ 975,565   4.0 % 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,
2017 2016 % Change 2017 2016 % Change
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Interest and Dividend Income
Interest and fees on loans $ 11,398 $ 9,835 15.9 % $ 22,210 $ 19,494 13.9 %
Interest on investment securities, taxable 336 326 3.1 % 697 648 7.6 %
Interest on investment securities, tax-exempt 53 42 26.2 % 105 75 40.0 %
Dividends 105 85 23.5 % 203 164 23.8 %
Interest on deposits in banks   74   29 155.2 %   153   82 86.6 %
Total interest and dividend income   11,966   10,317 16.0 %   23,368   20,463 14.2 %
 
Interest Expense
Deposits 1,563 1,326 17.9 % 3,037 2,644 14.9 %
Federal Home Loan Bank advances 341 174 96.0 % 642 342 87.7 %
Other short-term borrowings   8   16 -50.0 %   20   31 -35.5 %
Total interest expense   1,912   1,516 26.1 %   3,699   3,017 22.6 %
 
Net interest income 10,054 8,801 14.2 % 19,669 17,446 12.7 %
 
Provision for loan losses   380   240 58.3 %   645   2,975 -78.3 %
 
Net interest income after provision for loan losses   9,674   8,561 13.0 %   19,024   14,471 31.5 %
 
Noninterest Income
Service charges on deposit accounts 91 98 -7.1 % 188 220 -14.5 %
Bank owned life insurance 135 161 -16.1 % 275 215 27.9 %
Other service charges and fees 30 16 87.5 % 54 35 54.3 %
Gain on sale of securities 54 - - N/M 130 - - N/M
Gain on sale of fixed assets - - - - N/M 1 - - N/M
Other operating income   - -   - - N/M     10   - - N/M  
Total noninterest income   310   275 12.7 %   658   470 40.0 %
 
Noninterest Expenses
Salaries and employee benefits 3,516 3,088 13.9 % 7,152 6,132 16.6 %
Occupancy expense of premises 463 413 12.1 % 898 832 7.9 %
Furniture and equipment expenses 286 309 -7.4 % 563 641 -12.2 %
Other operating expenses   1,590   1,386 14.7 %   3,172   2,850 11.3 %
Total noninterest expenses   5,855   5,196 12.7 %   11,785   10,455 12.7 %
 
Income before income taxes 4,129 3,640 13.4 % 7,897 4,486 76.0 %
 
Income tax expense   1,425

 

  1,214 17.4 %   2,682

 

  1,500 78.8 %
 
Net income $ 2,704 $ 2,426 11.5 % $ 5,215 $ 2,986 74.6 %
 
Earnings Per Share
Basic $ 0.26 $ 0.24 8.3 % $ 0.51 $ 0.30 70.0 %
Diluted $ 0.25 $ 0.23 8.7 % $ 0.48 $ 0.28 71.4 %
               
John Marshall Bancorp, Inc.
 
Loan, Deposit and Borrowing Detail (Unaudited)
(Dollar amounts in thousands)
 
June 30, 2017 December 31, 2016 June 30, 2016 Percentage Change
Loans $ Amount % of Total $ Amount % of Total $ Amount % of Total Last 6 Mos Last 12 Mos
Mortgage loans on real estate
Commercial $ 552,960 58.7 % $ 519,857 58.0 % $ 475,702 58.0 % 6.4 % 16.2 %
Construction and land development 190,090 20.2 % 180,318 20.1 % 158,798 19.4 % 5.4 % 19.7 %
Residential   118,087   12.5 %   107,534   12.0 %   99,051   12.1 % 9.8 % 19.2 %
Total mortgage loans on real estate $ 861,137 91.4 % $ 807,709 90.1 % $ 733,551 89.5 % 6.6 % 17.4 %
Commercial loans 79,960 8.5 % 86,498 9.7 % 81,861 10.0 % -7.6 % -2.3 %
Consumer loans   1,358   0.1 %   1,820   0.2 %   4,309   0.5 % -25.4 % -68.5 %
Total loans $ 942,455 100.0 % $ 896,027 100.0 % $ 819,721 100.0 % 5.2 % 15.0 %
Less: Allowance for loan losses (8,861 ) (8,202 ) (8,170 )
Net deferred loan fees   (1,709 )   (1,605 )   (1,483 )
Net loans $ 931,885   $ 886,220   $ 810,068  
 
 
June 30, 2017 December 31, 2016 June 30, 2016 Percentage Change
Deposits $ Amount % of Total $ Amount % of Total $ Amount % of Total Last 6 Mos Last 12 Mos
Noninterest-bearing demand deposits $ 167,920 19.1 % $ 195,065 23.4 % $ 144,377 19.0 % -13.9 % 16.3 %
Interest-bearing demand deposits:
NOW accounts 40,511 4.6 % 12,739 1.5 % 14,041 1.8 % 218.0 % 188.5 %
Money market accounts 156,201 17.8 % 187,748 22.6 % 222,487 29.2 % -16.8 % -29.8 %
Savings accounts 7,436 0.9 % 6,856 0.8 % 7,659 1.0 % 8.5 % -2.9 %
Certificates of deposit
$250,000 or more 190,210 21.6 % 187,568 22.5 % 154,476 20.3 % 1.4 % 23.1 %
Less than $250,000 106,683 12.1 % 101,368 12.2 % 101,269 13.3 % 5.2 % 5.3 %
QwickRate® Certificates of deposit 22,434 2.6 % 22,844 2.8 % 21,602 2.8 % -1.8 % 3.9 %
ICS® 60,852 6.9 % - - 0.0 % - - 0.0 % N/M N/M
CDARS® 83,573 9.5 % 71,799 8.6 % 69,518 9.1 % 16.4 % 20.2 %
Brokered deposits   43,014   4.9 %   46,878   5.6 %   26,903   3.5 % -8.2 % 59.9 %
Total deposits $ 878,834   100.0 % $ 832,865   100.0 % $ 762,332   100.0 % 5.5 % 15.3 %
 
Borrowings
Customer repurchase agreements $ 2,723 2.5 % $ 14,206 12.0 % $ 16,355 17.2 % -80.8 % -83.4 %
Federal Home Loan Bank advances   107,000   97.5 %   104,000   88.0 %   79,000   82.8 % 2.9 % 35.4 %
Total borrowings $ 109,723   100.0 % $ 118,206   100.0 % $ 95,355   100.0 % -7.2 % 15.1 %
 
Total deposits and borrowings $ 988,557   $ 951,071   $ 857,687   3.9 % 15.3 %
 
Core customer funding sources (1) $ 816,109 82.6 % $ 777,349 81.7 % $ 730,182 85.1 % 5.0 % 11.8 %
Wholesale funding sources (2)   172,448   17.4 %   173,722   18.3 %   127,505   14.9 % -0.7 % 35.2 %
Total funding sources $ 988,557   100.0 % $ 951,071   100.0 % $ 857,687   100.0 % 3.9 % 15.3 %
 
(1) Includes ICS and CDARS(r), which are all reciprocal deposits maintained by customers, and repurchase agreements, which represent sweep accounts tied to customer operating accounts.
(2) Consists of QwickRate(r) certificates of deposit, brokered deposits 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, 2017 Three Months Ended June 30, 2016
Interest Average Interest Average
Average Income- Yields Average Income- Yields
Balance Expense /Rates Balance Expense /Rates
Assets
Securities $ 93,167 $ 494 2.13 % $ 90,969 $ 453 2.00 %
Loans, net of unearned income 935,582 11,398 4.89 % 805,377 9,835 4.91 %
Interest-bearing deposits in other banks 26,937 74 1.10 % 25,502 29 0.46 %
Federal funds sold   58   - - N/M     - -   - - N/M  
Total interest-earning assets $ 1,055,743 $ 11,966 4.55 % $ 921,848 $ 10,317 4.50 %
Other assets   32,421   29,943
Total assets $ 1,088,164 $ 951,791
Liabilities & Shareholders' equity
Interest-bearing deposits
NOW accounts $ 50,386 $ 41 0.33 % $ 13,866 $ 19 0.55 %
Money market accounts 192,987 268 0.56 % 218,314 291 0.54 %
Savings accounts 7,385 4 0.22 % 10,707 11 0.41 %
Time deposits   423,612   1,250 1.18 %   362,303   1,005 1.12 %
Total interest-bearing deposits $ 674,371 $ 1,563 0.93 % $ 605,190 $ 1,326 0.88 %

Securities sold under agreement to repurchase and federal funds purchased

$ 5,622 $ 8 0.57 % $ 15,437 $ 16 0.42 %
Other borrowed funds   110,374   341 1.24 %   68,187   174 1.03 %
Total interest-bearing liabilities $ 790,367 $ 1,912 0.97 % $ 688,814 $ 1,516 0.89 %
Demand deposits and other liabilities   173,734   150,891
Total liabilities $ 964,101 $ 839,705
Shareholders' equity   124,064   112,086
Total liabilities and shareholders' equity $ 1,088,164 $ 951,791
Interest rate spread 3.58 % 3.61 %
Net interest income and margin $ 10,054 3.82 % $ 8,801 3.84 %
 
 
Six Months Ended June 30, 2017 Six Months Ended June 30, 2016
Interest Average Interest Average
Average Income- Yields Average Income- Yields
Balance Expense /Rates Balance Expense /Rates
Assets
Securities $ 94,523 $ 1,005 2.14 % $ 89,099 $ 887 2.00 %
Loans, net of unearned income 921,842 22,210 4.86 % 796,052 19,494 4.92 %
Interest-bearing deposits in other banks 32,366 153 0.95 % 33,421 82 0.49 %
Federal funds sold   57   - - 0.00 %   - -   - - 0.00 %
Total interest-earning assets $ 1,048,788 $ 23,368 4.49 % $ 918,572 $ 20,463 4.48 %
Other assets   32,152   24,581
Total assets $ 1,080,940 $ 943,153
Liabilities & Shareholders' equity
Interest-bearing deposits
NOW accounts $ 38,813 $ 56 0.29 % $ 17,584 $ 35 0.40 %
Money market accounts 200,433 522 0.53 % 214,857 573 0.54 %
Savings accounts 7,312 8 0.23 % 12,811 31 0.49 %
Time deposits   423,982   2,450 1.17 %   359,726   2,005 1.12 %
Total interest-bearing deposits $ 670,540 $ 3,037 0.91 % $ 604,978 $ 2,644 0.88 %

Securities sold under agreement to repurchase and federal funds purchased

$ 9,229 $ 20 0.44 % $ 14,695 $ 31 0.42 %
Other borrowed funds   106,840   642 1.21 %   67,896   342 1.01 %
Total interest-bearing liabilities $ 786,609 $ 3,699 0.95 % $ 687,569 $ 3,017 0.88 %
Demand deposits and other liabilities   171,865   143,978
Total liabilities $ 958,474 $ 831,547
Shareholders' equity   122,466   111,606
Total liabilities and shareholders' equity $ 1,080,940 $ 943,153
Interest rate spread 3.54 % 3.60 %
Net interest income and margin $ 19,669 3.78 % $ 17,446 3.82 %
       
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
  2017     2016     2017     2016  
Per share Data and Shares Outstanding
Earnings per share - basic $ 0.26 $ 0.24 $ 0.51 $ 0.30
Earnings per share - diluted $ 0.25 $ 0.23 $ 0.48 $ 0.28
Tangible book value per share $ 12.19 $ 11.24 $ 12.19 $ 11.24
Weighted average common shares (basic) 10,238,495 10,031,011 10,221,916 10,028,888
Weighted average common shares (diluted) 10,814,851 10,538,961 10,803,051 10,536,838
Common shares outstanding at end of period (1) 10,243,141 10,031,349 10,243,141 10,031,349
 
Performance Ratios
Return on average assets (annualized) 1.00 % 1.03 % 0.97 % 0.64 %
Return on average equity (annualized) 8.74 % 8.71 % 8.59 % 5.38 %
Yield on earning assets (annualized) 4.55 % 4.50 % 4.49 % 4.48 %
Cost of interest bearing liabilities (annualized) 0.97 % 0.89 % 0.95 % 0.88 %
Net interest spread 3.58 % 3.61 % 3.54 % 3.60 %
Net interest margin 3.82 % 3.84 % 3.78 % 3.82 %
Noninterest income as a percentage of average assets (annualized) 0.11 % 0.12 % 0.12 % 0.10 %
Noninterest expense to average assets (annualized) 2.16 % 2.20 % 2.20 % 2.23 %
Efficiency ratio 56.5 % 57.2 % 58.0 % 58.4 %
 
Asset Quality
Loans 30-89 days past due and accruing interest $ 108 $ 2,101 $ 108 $ 2,101
Non-accrual loans $ 3,396 $ 3,325 $ 3,396 $ 3,325
Other real estate owned $ - $ - $ - $ -
Non-performing assets (2) $ 3,396 $ 3,325 $ 3,396 $ 3,325
Non-performing assets to total assets 0.30 % 0.34 % 0.30 % 0.34 %
Allowance for loan losses to total loans 0.94 % 1.00 % 0.94 % 1.00 %
Allowance for loan losses to non-performing loans 2.6 2.5 2.6 2.5
Net loan chargeoffs (recoveries) $ (8 ) $ - $ (14 ) $ 1,935
Net charge-offs (recoveries) to average loans (annualized) 0.00 % 0.00 % 0.00 % 0.49 %
Troubled debt restructurings (total) $ 501 $ 514 $ 501 $ 514
Performing in accordance with modified terms $ 501 $ 514 $ 501 $ 514
Not performing in accordance with modified terms $ - $ - $ - $ -
 
Regulatory Capital Ratios
Total risk-based capital ratio 12.3 % 12.7 % 12.3 % 12.7 %
Tier 1 risk-based capital ratio 11.5 % 11.8 % 11.5 % 11.8 %
Leverage ratio 11.5 % 11.9 % 11.5 % 11.9 %
Common equity tier 1 ratio 11.5 % 11.8 % 11.5 % 11.8 %
 
Other Information
Effective income tax rate 34.5 % 33.4 % 34.0 % 33.4 %
Tangible equity / tangible assets 11.2 % 11.6 % 11.2 % 11.6 %
Average tangible equity / average tangible assets 11.4 % 11.8 % 11.3 % 11.8 %
Number of full time equivalent employees 123 108 123 108
# Full service branch offices 5 5 5 5
# Loan production or limited service branch offices 2 2 2 2
 
(1)

Includes 67,020 unvested shares per balance sheet at June 30, 2017 and no unvested shares at June 30, 2016.

(2) Non-performing assets consist of non-accrual loans, loans 90 day or more past due and still accruing interest, and other real estate owned. Does not include troubled debt restructurings ("TDRs") which were accruing interest at the date indicated.

Contacts

John Marshall Bancorp, Inc.
John R. Maxwell, 703-584-0840

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