RESTON, Va.--(BUSINESS WIRE)--April 29, 2026--
John Marshall Bancorp, Inc. (Nasdaq: JMSB) (the "Company"), parent company of John Marshall Bank (the "Bank"), reported net income of $6.1 million for the quarter ended March 31, 2026 compared to $4.8 million for the quarter ended March 31, 2025, an increase of $1.3 million or 26.8%. Diluted earnings per common share were $0.43 for the quarter ended March 31, 2026 compared to $0.34 for the quarter ended March 31, 2025, an increase of 26.5%. Annualized return on average assets was 1.06% for the quarter ended March 31, 2026 compared to 0.87% for the quarter ended March 31, 2025. Annualized return on average equity was 9.19% for the quarter ended March 31, 2026 compared to 7.76% for the quarter ended March 31, 2025.
Selected Highlights
-- Earnings Growth Momentum -- Net income of $6.1 million for the quarter
ended March 31, 2026 represented a 3.1% increase over the $5.9 million
net income reported for the quarter ended December 31, 2025 or an
annualized quarter-over-quarter increase of 12.7%. The quarter ended
March 31, 2026 marked the seventh consecutive quarter of net income
growth. Diluted earnings per common share were $0.43 for the quarter
ended March 31, 2026 and represented a 2.4% increase over the $0.42
diluted earnings per common share reported for the quarter ended December
31, 2025 or an annualized quarter-over-quarter increase of 9.7%.
-- Significant Increase in Net Interest Income - For the three months
ended March 31, 2026, the Company reported net interest income of $16.5
million, a $2.4 million or 17.1% increase over the prior year first
quarter.
-- Continued Net Interest Margin Expansion - Net interest margin expanded
for the eighth consecutive quarter. Net interest margin increased 29
basis points, from 2.58% for the first quarter of 2025 to 2.87% for the
first quarter of 2026. Net interest margin grew 14 basis points when
compared to 2.73% for the fourth quarter of 2025.
-- Focused on Core Funding and Loan Growth - The Company remains focused
on driving value through core funding growth. For the twelve months ended
March 31, 2026, total deposits increased $65.6 million or 3.4%. For the
twelve months ended March 31, 2026, non-interest bearing demand deposits
increased $20.4 million or 4.7%. Non-interest bearing demand deposits
grew $25.5 million or 5.9% from December 31, 2025 to March 31, 2026.
Non-interest bearing demand deposits represented 23.1% of total deposits
as of March 31, 2026, an increase from 21.9% as of December 31, 2025. For
the twelve months ended March 31, 2026, gross loans increased $103.3
million or 5.5%.
-- Positive Operating Leverage -- Revenues (net interest income plus
non-interest income) grew 15.0% for the quarter ended March 31, 2026
relative to the quarter ended March 31, 2025, while non-interest expense
increased 8.2%, over the same period. This positive trend in operating
leverage improved the efficiency ratio from 56.5% for the three months
ended March 31, 2025 to 53.1% for the three months ended March 31, 2026.
-- Strong Asset Quality -- Overall credit quality of the loan portfolio
remains exceptional. The Company recorded no charge-offs during the first
quarter of 2026 and had no other real estate owned assets as of March 31,
2026. During the most recent quarter, management placed one U.S. Small
Business Administration ("SBA") 7(a) loan in the total amount of $984
thousand on non-accrual status, representing the Company's only
non-accrual loan as of March 31, 2026. The entire outstanding loan amount
is fully guaranteed by the SBA. The Company has submitted the guaranty
purchase to the SBA and expects to receive the full guarantee payment.
This is the only non-accrual loan since the third quarter of 2019.
-- Growing Book Value per Share and Dividends -- Book value per share
increased from $17.72 as of March 31, 2025 to $19.00 as of March 31,
2026, a 7.2% increase. On April 28, 2026, the Company's Board of
Directors declared a quarterly cash dividend of $0.09 per share on the
Company's common stock. The dividend is payable on June 3, 2026 to
shareholders of record at the close of business on May 13, 2026. The
annualized quarterly cash dividend represents a 20% increase over the
2025 annual cash dividend.
-- Robust Capitalization -- Each of the Bank's regulatory capital ratios
remained well in excess of the regulatory well-capitalized thresholds as
of March 31, 2026. During the three months ended March 31, 2026, the
Company repurchased 103,507 shares of its common stock at a weighted
average price of $19.69.
Chris Bergstrom, President and Chief Executive Officer, commented, "The first quarter of 2026 marks the eighth consecutive quarter of net interest margin improvement. Of the 29 basis points of margin improvement over the last year, 14 basis points of that increase occurred during the first quarter of 2026. Increased margin and $103 million in loan growth over the last twelve months enabled the Company to grow both net income and earnings per share by 27%. Our asset quality remains outstanding. We expect the SBA to pay their guarantee and resolve our one non-accruing loan. With 16.5% total risk-based capital, we have the requisite equity to grow loans at appropriate risk-adjusted returns. Alternatively, we have ample excess capital to build upon the 103,000 shares we repurchased during the first quarter. Our priorities remain unchanged. We continue to invest in technology and personnel to cultivate new relationships and deepen existing ones. We remain focused on delivering tailored banking services and exceptional client experiences. As demonstrated by the nearly 23% increase in our share price from March 31, 2025 to March 31, 2026 and our increased quarterly cash dividend rate, we believe our balance sheet allows us to focus on continued growth, and drive increased returns and shareholder value."
Balance Sheet, Liquidity and Credit Quality
Total assets were $2.35 billion at March 31, 2026, $2.33 billion at December 31, 2025, and $2.27 billion at March 31, 2025. Total assets increased $19.8 million or 3.4% annualized since December 31, 2025 and $79.9 million or 3.5% from March 31, 2025.
Total loans, net of unearned income, declined $1.6 million or 0.3% annualized to $1.97 billion at March 31, 2026 compared to $1.98 billion at December 31, 2025 and increased $103.3 million or 5.5% from $1.87 billion at March 31, 2025. The increase in loans over the preceding twelve months was primarily attributable to growth in construction & development loans and residential mortgage loans. Refer to the Loan, Deposit and Borrowing Detail table for further information.
The carrying value of the Company's fixed income securities portfolio was $213.8 million at March 31, 2026, $212.3 million at December 31, 2025, and $215.6 million at March 31, 2025. During the most recent quarter, the Company purchased seven fixed income securities, designated as available-for-sale, with the total carrying amount of $15.0 million and a weighted average purchase yield of 4.08%. The current quarter's maturities had an average yield of 2.07%. As of March 31, 2026, 95.3% of our bond portfolio carried the implied guarantee of the United States government or one of its agencies. At March 31, 2026, 70.6% of the fixed income portfolio was invested in amortizing bonds, which provides the Company with a source of steady cash flow. At March 31, 2026, the fixed income portfolio had an estimated weighted average life of 3.9 years. The available-for-sale portfolio comprised approximately 61% of the fixed income securities portfolio and had a weighted average life of 3.2 years at March 31, 2026. The held-to-maturity portfolio comprised approximately 39% of the fixed income securities portfolio and had a weighted average life of 4.9 years at March 31, 2026.
The Company did not have an allowance for credit losses on held-to-maturity securities as of March 31, 2026 or December 31, 2025. As of March 31, 2026, 93.1% of our held-to-maturity portfolio carried the implied guarantee of the United States government or one of its agencies.
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 $881.0 million as of March 31, 2026 compared to $827.0 million as of December 31, 2025 and represented 37.5% and 35.5% of total assets, respectively. In addition to available secured borrowing capacity, the Bank had available federal funds lines of $110.0 million at March 31, 2026.
Total deposits increased $15.4 million or 3.2% annualized to $1.99 billion at March 31, 2026 compared to $1.97 billion at December 31, 2025, and increased $65.6 million or 3.4% from $1.92 billion at March 31, 2025. During the most recent quarter, total non-interest bearing deposits increased $25.5 million or 23.9% annualized when compared to December 31, 2025, while total interest-bearing deposits declined $10.0 million or 2.6% annualized over the same period. As further detailed in the tables included in this release, core funding sources have increased $15.7 million, while wholesale funding sources have decreased $0.2 million since December 31, 2025. Detail on the deposit activity can be seen in the Loan, Deposit and Borrowing Detail table. As of March 31, 2026, the Company had $724.6 million of deposits that were not insured or not collateralized compared to $691.5 million and $660.8 million at December 31, 2025 and March 31, 2025, respectively.
Federal Home Loan Bank ("FHLB") advances remained unchanged at $56.0 million as of March 31, 2026 compared to December 31, 2025 and March 31, 2025. During the first quarter of 2026, a $15.0 million maturing FHLB advance, carrying an interest rate of 4.14%, was replaced with the FHLB advance of the same principal amount and the interest rate of 3.61%. As of March 31, 2026, the FHLB advances had a weighted average fixed interest rate of 3.85%. In addition to outstanding FHLB advances, total borrowings as of March 31, 2026 included subordinated debt totaling $24.9 million.
Shareholders' equity increased $15.1 million or 6.0% to $268.1 million at March 31, 2026 compared to $253.0 million at March 31, 2025. Book value per share was $19.00 as of March 31, 2026 compared to $17.72 as of March 31, 2025, an increase of 7.2%. The year-over-year change in book value per share was primarily due to the Company's earnings over the previous twelve months and a decrease in accumulated other comprehensive loss, resulting from an increase in the market value of our available-for-sale investment portfolio. These increases were partially offset by cash dividends paid and a reduction of additional paid-in capital due to the Company's share repurchases during the period.
The Bank's capital ratios remained well above regulatory thresholds for well-capitalized banks. As of March 31, 2026, the Bank's total risk-based capital ratio was 16.5%, compared to 16.3% at December 31, 2025, and 16.5% at March 31, 2025.
During the quarter ended March 31, 2026, the Company designated one commercial business SBA 7(a) loan as non-accrual. As of March 31, 2026, the total outstanding principal amount of the loan was $984 thousand and is fully guaranteed by the SBA. The Company charged-off the unguaranteed portion of the loan, in the total amount of $361 thousand, during the fourth quarter of 2025 and submitted a reimbursement claim to the SBA for the guaranteed portion. We expect the SBA to pay their guarantee and resolve our one non-accruing loan. During the three months ended March 31, 2026, the Company recorded no charge-offs and had no other real estate owned assets as of March 31, 2026.
At March 31, 2026, the allowance for loan credit losses was $20.0 million or 1.01% of outstanding loans, net of unearned income, compared to $19.8 million or 1.00% of outstanding loans, net of unearned income, at December 31, 2025. Asset quality remains strong. Management continues to assess credit risk exposure and monitor macroeconomic indicators that may impact borrower behavior and repayment capacity. Management believes the current allowance for credit losses is appropriate given the composition and performance of the loan portfolio.
At March 31, 2026, the allowance for credit losses on unfunded loan commitments was $1.2 million compared to $1.3 million at December 31, 2025, due to a lower amount of available loan commitments.
The Company believes its owner occupied and non-owner occupied commercial real estate portfolios continue to be of sound credit quality. The following table demonstrates their strong debt-service-coverage and loan-to-value ratios as of March 31, 2026.
Commercial Real Estate
----------------------------------------------------------------------------------------------------------------------------------------------
Owner Occupied Non-owner Occupied
------------ --------------------------------------------------------------- ---------------------------------------------------------------
Weighted Weighted
Average Average
Weighted Debt Number Weighted Debt Number
Average Service of Principal Balance(3) Average Service of Principal Balance(3)
Loan Coverage Total (Dollars in Loan Coverage Total (Dollars in
Asset Class to-Value(1) Ratio(2) Loans thousands) to-Value(1) Ratio(2) Loans thousands)
------------ ----------- -------- ------ --- ---------------------- ----------- -------- ------ --- ----------------------
Warehouse &
Industrial 54.0% 3.2 x 55 $ 68,336 47.5% 2.2 x 46 $ 110,270
Office 57.5% 3.7 x 133 84,129 47.5% 1.7 x 57 105,145
Retail 61.0% 3.0 x 43 75,998 50.6% 1.8 x 141 442,845
Church 24.2% 2.3 x 17 25,852 70.8% 3.0 x 2 5,590
Hotel/Motel - - - - - - - - 50.4% 1.5 x 12 82,152
Other(4) 41.7% 3.7 x 40 67,543 45.6% 2.3 x 8 16,156
------ ---------------------- ------ ----------------------
Total 288 $ 321,858 266 $ 762,158
------------ ----------- -------- ------ --- ---------------------- ----------- -------- ------ --- ----------------------
(1) Loan-to-value is determined at origination date and is divided by
principal balance as of March 31, 2026.
(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.
The following charts provide geographic detail and stated maturity summaries for the Company's non-owner occupied office portfolio as of March 31, 2026:
Non-owner occupied office: Geography
----------------------------------------------
Commitment
Geography (in thousands) Percentage
------------ ------------------ ------------
Virginia $68,064 64.0%
Maryland 24,014 22.6%
DC 14,246 13.4%
------------------ --------
Total $106,324 100.0%
------------ ------------------ --------
Non-owner occupied office: Maturity
---------------------------------------------
Maturity Commitment
Year (in thousands) Percentage
----------- ------------------ ------------
2026 $2,728 2.6%
2027 6,523 6.2%
2028 14,063 13.2%
2029 26,292 24.7%
2030+ 56,718 53.3%
------------------ --------
Total $106,324 100.0%
----------- ------------------ --------
Income Statement Review
Quarterly Results
The Company reported net income of $6.1 million for the first quarter of 2026, an increase of $1.3 million or 26.8% when compared to $4.8 million for the first quarter of 2025.
For the three months ended March 31, 2026, net interest income increased $2.4 million or 17.1% to $16.5 million compared to $14.1 million for the three months ended March 31, 2025. During the same period, interest income grew $1.8 million or 6.5%, driven by higher interest income on loans, while interest expense declined by $0.6 million or 4.8%, predominantly due to lower interest expense on time deposits, interest-bearing checking accounts and money market accounts.
The annualized net interest margin for the first quarter of 2026 was 2.87% compared to 2.58% for the same period in 2025. The increase in net interest margin was primarily due to increases in average balances and yields of the loan portfolio, coupled with lower rates on interest-bearing deposits.
The cost of interest-bearing liabilities was 3.15% for the first quarter of 2026 compared to 3.48% for the same quarter in the prior year driven by the 34 basis points decline in rates on interest-bearing deposits. Rates declined across all deposit categories, most notably in money market accounts, time deposits and interest-bearing demand deposits, which declined by 37 basis points, 36 basis points, and 31 basis points, respectively. The yield on interest-earning assets was 5.07% for the first quarter of 2026 compared to 4.99% for the same period in 2025 primarily due to an eight basis point increase in loan yield coupled with a 28 basis point increase in securities yield. These increases were partially offset by a 76 basis points decrease in yield on interest-bearing deposits in other banks, as a result of three federal funds rate cuts totaling 75 basis points during the previous year. Average loans increased by $105.9 million between the three months ended March 31, 2026 and the three months ended March 31, 2025, which was primarily attributable to origination volume in the construction & development and residential mortgage loan portfolios subsequent to March 31, 2025.
The Company recorded a $23 thousand provision for credit losses for the first quarter of 2026 compared to $170 thousand for the first quarter of 2025. Provision for credit losses on funded loans totaled $143 thousand, while provision for credit losses on unfunded loan commitments was a recovery of $120 thousand during the three months ended March 31, 2026. The provision for credit losses on funded loans during the most recent quarter reflected the change in the Company's loan portfolio mix quarter-over-quarter along with the updated forecasted economic variables utilized in the quantitative portion of the allowance calculation. Recovery of the provision for credit losses on unfunded loan commitments was due to lower amount of available loan commitments at March 31, 2026 as compared to December 31, 2025.
Non-interest income decreased $221 thousand or 43.8% during the first quarter of 2026 compared to the first quarter of 2025. This decrease was primarily attributable to a $149 thousand decrease in insurance commissions, in combination with a $37 thousand decrease in mark-to-market adjustments on investments related to the Company's nonqualified deferred compensation plan and a $30 thousand decline in gains recorded on sales of the guaranteed portions of the SBA 7(a) loans.
Non-interest expense increased $0.7 million or 8.2% during the first quarter of 2026 compared to the first quarter of 2025 primarily resulting from an increase in salaries and employee benefits and higher other expenses. Salaries and employee benefits increased by $522 thousand, which was mainly related to increases in headcount within the Bank during the preceding twelve months and an annual salary merit increase in combination with lower direct loan origination costs when compared to the same period of the prior year. Salaries and employee benefit expense is reduced to account for the portion of salary costs incurred to originate a loan and are subsequently amortized into interest income to match the costs incurred with the economic benefit derived from originating a loan. Other expenses increased by $124 thousand mainly due to higher franchise tax and FDIC insurance, due to higher assessment bases, partially offset by lower marketing expense.
For the three months ended March 31, 2026, annualized non-interest expense to average assets was 1.54% compared to 1.50% for the three months ended March 31, 2025. This increase was primarily due to the growth in non-interest expense outpacing the growth in average assets during the period. For the three months ended March 31, 2026, the efficiency ratio declined to 53.1% compared to 56.5% for the three months ended March 31, 2025. The improvement in the efficiency ratio was due to a 15.0% growth in total revenue, which outpaced an 8.2% increase in non-interest expense over the period.
Return on average assets for the quarter ended March 31, 2026 was 1.06% and return on average equity was 9.19% compared to 0.87% and 7.76%, respectively, for the first quarter of 2025.
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 consumers in the Washington, D.C. Metropolitan area. The Bank offers a comprehensive line of sophisticated banking products and services 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 commercial real estate, trade contractors, government contractors, health services, nonprofits, private and charter schools, professional services, property management, community associations, and title and escrow services. Learn more at www.johnmarshallbank.com. Follow the Bank on LinkedIn at: https://www.linkedin.com/company/john-marshall-bank/.
Cautionary Note Regarding Forward-Looking Statements
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, including shutdowns and potential reductions in spending by the U.S. Government, and related reductions in the federal workforce; adequacy of our allowance for loan credit losses, allowance for unfunded commitments credit losses, and allowance for credit losses associated with our held-to-maturity and available-for-sale securities portfolios; deterioration of our asset quality; future performance of our loan portfolio with 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 trade restrictions and tariffs, and acts or threats of terrorism and/or military conflicts, or actions taken by the U.S. or other governments in response to trade restrictions and tariffs, and acts or threats of terrorism 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 the COVID-19 pandemic) and governmental and societal responses thereto; technological risks and developments, and cyber threats, attacks, or events; 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 purposes 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
March 31
----------------------------------
2026 2025
------------------ --------------
Selected Balance Sheet
Data
Cash and cash equivalents $ 150,193 $ 169,060
Total investment securities 224,367 226,163
Loans, net of unearned income 1,973,743 1,870,472
Allowance for loan credit
losses 19,983 18,826
Total assets 2,352,350 2,272,432
Non-interest bearing demand
deposits 458,197 437,822
Interest-bearing deposits 1,529,531 1,484,353
Total deposits 1,987,728 1,922,175
Federal Home Loan Bank
advances 56,000 56,000
Shareholders' equity 268,147 252,958
Summary Results of
Operations
Interest income $ 29,082 $ 27,305
Interest expense 12,573 13,208
Net interest income 16,509 14,097
Provision for credit losses 23 170
Net interest income after
provision for credit
losses 16,486 13,927
Non-interest income 284 505
Non-interest expense 8,923 8,248
Income before income taxes 7,847 6,184
Net income 6,101 4,810
Per Share Data and Shares
Outstanding
Earnings per common share -
basic $ 0.43 $ 0.34
Earnings per common share -
diluted $ 0.43 $ 0.34
Book value per share $ 19.00 $ 17.72
Weighted average common shares
(basic) 14,125,649 14,223,046
Weighted average common shares
(diluted) 14,125,649 14,241,114
Common shares outstanding at
end of period 14,112,259 14,275,885
Performance Ratios
Return on average assets
(annualized) 1.06% 0.87%
Return on average equity
(annualized) 9.19% 7.76%
Net interest margin
(annualized) 2.87% 2.58%
Non-interest income as a
percentage of average assets
(annualized) 0.05% 0.09%
Non-interest expense to
average assets (annualized) 1.54% 1.50%
Efficiency ratio 53.1% 56.5%
Asset Quality
Non-performing assets to total
assets 0.04% - -%
Non-performing loans to total
loans 0.05% - -%
Allowance for loan credit
losses to non-performing
assets 20.3x - -x
Allowance for loan credit
losses to total loans 1.01% 1.01%
Net recoveries to average
loans (annualized) 0.01% - -%
Loans 30-89 days past due and
accruing interest $ 450 $ - -
90 days past due and still
accruing interest - - - -
Non-accrual loans 984 - -
Other real estate owned - - - -
Non-performing assets (1) 984 - -
Capital Ratios (Bank
Level)
Equity / assets 12.2% 11.9%
Total risk-based capital ratio 16.5% 16.5%
Tier 1 risk-based capital
ratio 15.4% 15.4%
Common equity tier 1 ratio 15.4% 15.4%
Leverage ratio 12.6% 12.6%
Other Information
Number of full time equivalent
employees 139 136
# Full service branch offices 8 8
___________________
(1) 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 Last
March 31 31, March 31 Three Year Over
2026 2025 2025 Months Year
------------- ---------- ------------- --------- ----------
Assets (Unaudited) * (Unaudited)
Cash and due from banks $ 9,132 $ 6,492 $ 10,541 40.7% (13.4)%
Interest-bearing
deposits in banks 141,061 123,482 158,519 14.2% (11.0)%
Securities
available-for-sale, at
fair value 126,166 123,852 124,469 1.9% 1.4%
Securities
held-to-maturity at
amortized cost, fair
value of $76,669,
$77,575, and $77,455 at
3/31/2026, 12/31/2025,
and 3/31/2025,
respectively 87,598 88,421 91,172 (0.9)% (3.9)%
Restricted securities,
at cost 7,717 7,644 7,634 - -% 1.1%
Equity securities, at
fair value 2,886 2,843 2,888 1.5% (0.1)%
Loans, net of unearned
income 1,973,743 1,975,360 1,870,472 (0.1)% 5.5%
Allowance for loan
credit losses (19,983) (19,805) (18,826) 0.9% 6.1%
--------- --------- --------- ----- ------
Net loans 1,953,760 1,955,555 1,851,646 (0.1)% 5.5%
Bank premises and
equipment, net 1,191 1,315 1,484 (9.4)% (19.7)%
Accrued interest
receivable 6,071 5,890 5,902 3.1% 2.9%
Right of use assets 4,289 4,551 4,752 (5.8)% (9.7)%
Other assets 12,479 12,505 13,425 (0.2)% (7.0)%
--------- --------- --------- ----- ------
Total assets $ 2,352,350 $2,332,550 $ 2,272,432 0.8% 3.5%
========= ========= ========= ===== ======
Liabilities and
Shareholders' Equity
Liabilities
Deposits:
Non-interest bearing
demand deposits $ 458,197 $ 432,733 $ 437,822 5.9% 4.7%
Interest-bearing
demand deposits 734,164 745,323 705,386 (1.5)% 4.1%
Savings deposits 33,525 34,683 42,583 (3.3)% (21.3)%
Time deposits 761,842 759,546 736,384 0.3% 3.5%
--------- --------- --------- ----- ------
Total deposits 1,987,728 1,972,285 1,922,175 0.8% 3.4%
Federal Home Loan Bank
advances 56,000 56,000 56,000 - -% - -%
Subordinated debt, net 24,896 24,875 24,812 0.1% 0.3%
Accrued interest payable 1,988 2,124 2,072 (6.4)% (4.1)%
Lease liabilities 4,542 4,819 5,101 (5.7)% (11.0)%
Other liabilities 9,049 6,809 9,314 32.9% (2.8)%
--------- --------- --------- ----- ------
Total
liabilities 2,084,203 2,066,912 2,019,474 0.8% 3.2%
--------- --------- --------- ----- ------
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,
14,112,259 at 3/31/2026
including 68,207
unvested shares,
14,214,603 at
12/31/2025 including
68,547 unvested shares,
and 14,275,885 at
3/31/2025 including
50,419 unvested shares 140 141 142 (0.7)% (1.4)%
Additional paid-in
capital 93,796 95,699 97,310 (2.0)% (3.6)%
Retained earnings 181,736 176,913 164,761 2.7% 10.3%
Accumulated other
comprehensive loss (7,525) (7,115) (9,255) 5.8% (18.7)%
--------- --------- --------- ----- ------
Total
shareholders'
equity 268,147 265,638 252,958 0.9% 6.0%
--------- --------- --------- ----- ------
Total
liabilities
and
shareholders'
equity $ 2,352,350 $2,332,550 $ 2,272,432 0.8% 3.5%
========= ========= ========= ===== ======
* 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
March 31,
----------------------------
2026 2025 % Change
------------- ------------- ----------
(Unaudited) (Unaudited)
Interest and Dividend Income
Interest and fees on loans $ 26,586 $ 24,807 7.2%
Interest on investment
securities, taxable 1,165 1,032 12.9%
Interest on investment
securities, tax-exempt 9 9 - -%
Dividends 116 123 (5.7)%
Interest on deposits in
other banks 1,206 1,334 (9.6)%
--------- --------- ------
Total interest and
dividend income 29,082 27,305 6.5%
--------- --------- ------
Interest Expense
Deposits 11,673 12,300 (5.1)%
Federal Home Loan Bank
advances 551 559 (1)%
Subordinated debt 349 349 - -%
--------- --------- ------
Total interest expense 12,573 13,208 (4.8)%
--------- --------- ------
Net interest income 16,509 14,097 17.1%
Provision for Credit Losses 23 170 (86.5)%
Net interest income after
provision for credit
losses 16,486 13,927 18.4%
--------- --------- ------
Non-interest Income
Service charges on deposit
accounts 85 82 3.7%
Other service charges and
fees 138 153 (9.8)%
Insurance commissions 64 213 (70.0)%
Gain on sale of government
guaranteed loans 6 36 (83.3)%
Non-qualified deferred
compensation plan asset
gains (losses), net (13) 24 N/M
Other income (loss) 4 (3) N/M
--------- --------- ------
Total non-interest income 284 505 (43.8)%
--------- --------- ------
Non-interest Expenses
Salaries and employee
benefits 5,621 5,099 10.2%
Occupancy expense of
premises 406 407 (0.2)%
Furniture and equipment
expenses 346 316 9.5%
Other expenses 2,550 2,426 5.1%
--------- --------- ------
Total non-interest
expenses 8,923 8,248 8.2%
--------- --------- ------
Income before income
taxes 7,847 6,184 26.9%
Income Tax Expense 1,746 1,374 27.1%
Net income $ 6,101 $ 4,810 26.8%
========= ========= ======
Earnings Per Share
Basic $ 0.43 $ 0.34 26.5%
Diluted $ 0.43 $ 0.34 26.5%
John Marshall Bancorp, Inc.
Historical Trends - Quarterly Financial Data (Unaudited)
(Dollar amounts in thousands, except per share data)
At or For the Three Months Ended
--------------------------------------------------------------------------------------------------------
2026 2025
----------- -------------------------------------------------------------
September
March 31 December 31 30 June 30 March 31
----------- ----------- ----------- ----------- -----------
Profitability for
the Quarter:
Interest income $ 29,082 $ 29,164 $ 28,945 $ 27,843 $ 27,305
Interest
expense 12,573 13,224 13,345 12,917 13,208
---------- ---------- ---------- ---------- ----------
Net interest income 16,509 15,940 15,600 14,926 14,097
Provision for
credit losses 23 624 356 537 170
Non-interest
income 284 409 653 507 505
Non-interest
expenses 8,923 7,971 9,034 8,313 8,248
---------- ---------- ---------- ---------- ----------
Income before
income taxes 7,847 7,754 6,863 6,583 6,184
Income tax
expense 1,746 1,838 1,459 1,480 1,374
---------- ---------- ---------- ---------- ----------
Net income $ 6,101 $ 5,916 $ 5,404 $ 5,103 $ 4,810
========== ========== ========== ========== ==========
Financial
Performance:
Return on average
assets
(annualized) 1.06% 1.01% 0.94% 0.91% 0.87%
Return on average
equity
(annualized) 9.19% 8.89% 8.31% 8.06% 7.76%
Net interest margin
(annualized) 2.87% 2.73% 2.72% 2.69% 2.58%
Non-interest income
as a percentage of
average assets
(annualized) 0.05% 0.07% 0.11% 0.09% 0.09%
Non-interest
expense to average
assets
(annualized) 1.54% 1.36% 1.57% 1.49% 1.50%
Efficiency ratio 53.1% 48.8% 55.6% 53.9% 56.5%
Per Share Data:
Earnings per common
share - basic $ 0.43 $ 0.42 $ 0.38 $ 0.36 $ 0.34
Earnings per common
share - diluted $ 0.43 $ 0.42 $ 0.38 $ 0.36 $ 0.34
Book value per
share $ 19.00 $ 18.69 $ 18.27 $ 17.83 $ 17.72
Dividends declared
per share $ 0.09 $ - - $ - - $ 0.30 $ - -
Weighted average
common shares
(basic) 14,125,649 14,142,249 14,172,953 14,221,597 14,223,046
Weighted average
common shares
(diluted) 14,125,649 14,142,249 14,172,953 14,223,418 14,241,114
Common shares
outstanding at end
of period 14,112,259 14,214,603 14,216,781 14,231,389 14,275,885
Non-interest
Income:
Service charges
on deposit
accounts $ 85 $ 81 $ 87 $ 86 $ 82
Other service
charges and
fees 138 142 135 141 153
Insurance
commissions 64 24 58 33 213
Gain on sale of
government
guaranteed
loans 6 119 106 61 36
Non-qualified
deferred
compensation
plan asset
gains
(losses), net (13) 38 158 182 24
Other income
(loss) 4 5 109 4 (3)
---------- ---------- ---------- ---------- ----------
Total non-interest
income $ 284 $ 409 $ 653 $ 507 $ 505
========== ========== ========== ========== ==========
Non-interest
Expenses:
Salaries and
employee
benefits $ 5,621 $ 4,758 $ 5,693 $ 5,178 $ 5,099
Occupancy
expense of
premises 406 326 405 407 407
Furniture and
equipment
expenses 346 326 329 315 316
Other expenses 2,550 2,561 2,607 2,413 2,426
---------- ---------- ---------- ---------- ----------
Total non-interest
expenses $ 8,923 $ 7,971 $ 9,034 $ 8,313 $ 8,248
========== ========== ========== ========== ==========
Balance Sheets at
Quarter End:
Total loans, net of
unearned income $ 1,973,743 $ 1,975,360 $ 1,938,108 $ 1,916,915 $ 1,870,472
Allowance for loan
credit losses (19,983) (19,805) (19,714) (19,298) (18,826)
Investment
securities 224,367 222,760 216,119 226,495 226,163
Interest-earning
assets 2,339,171 2,321,602 2,309,005 2,250,921 2,255,154
Total assets 2,352,350 2,332,550 2,324,544 2,267,953 2,272,432
Total deposits 1,987,728 1,972,285 1,968,828 1,896,893 1,922,175
Total
interest-bearing
liabilities 1,610,427 1,620,427 1,602,757 1,555,598 1,565,165
Total shareholders'
equity 268,147 265,638 259,692 253,732 252,958
Quarterly Average
Balance Sheets:
Total loans, net of
unearned income $ 1,974,165 $ 1,946,386 $ 1,912,275 $ 1,868,290 $ 1,868,303
Investment
securities 225,904 220,324 221,802 229,171 231,479
Interest-earning
assets 2,331,813 2,319,551 2,275,386 2,224,806 2,220,730
Total assets 2,343,457 2,331,563 2,289,352 2,238,955 2,233,761
Total deposits 1,977,321 1,970,486 1,934,456 1,883,425 1,884,969
Total
interest-bearing
liabilities 1,618,347 1,601,506 1,571,390 1,530,811 1,540,974
Total shareholders'
equity 269,327 264,175 257,993 254,071 251,559
Financial
Measures:
Average equity to
average assets 11.5% 11.3% 11.3% 11.3% 11.3%
Investment
securities to
earning assets 9.6% 9.6% 9.4% 10.1% 10.0%
Loans to earning
assets 84.4% 85.1% 83.9% 85.2% 82.9%
Loans to assets 83.9% 84.7% 83.4% 84.5% 82.3%
Loans to deposits 99.3% 100.2% 98.4% 101.1% 97.3%
Capital Ratios
(Bank Level):
Equity / assets 12.2% 12.2% 12.1% 12.2% 11.9%
Total risk-based
capital ratio 16.5% 16.3% 16.6% 16.3% 16.5%
Tier 1 risk-based
capital ratio 15.4% 15.2% 15.5% 15.3% 15.4%
Common equity tier
1 ratio 15.4% 15.2% 15.5% 15.3% 15.4%
Leverage ratio 12.6% 12.5% 12.7% 12.8% 12.6%
John Marshall Bancorp, Inc.
Loan, Deposit and Borrowing Detail (Unaudited)
(Dollar amounts in thousands)
2026 2025
----------------- ---------------------------------------------------------------------------------------------
March 31 December 31 September 30 June 30 March 31
----------------- -------------------- --------------------- ----------------- -----------------
% of % of % of % of % of
Loans $ Amount Total $ Amount Total $ Amount Total $ Amount Total $ Amount Total
--------- ----- --------- -------- --------- --------- --------- ----- --------- -----
Commercial
business
loans $ 48,905 2.5% $ 49,729 2.5% $ 46,486 2.4% $ 43,158 2.3% $ 46,479 2.5%
Commercial PPP
loans - - - -% 124 0.0% 124 0.0% 124 0.0% 124 0.0%
Commercial
owner-occupied
real estate
loans 321,858 16.3% 323,486 16.4% 327,269 16.9% 320,061 16.7% 318,087 17.1%
--------- ----- --------- -------- --------- --------- --------- ----- --------- -----
Total business
loans 370,763 18.8% 373,339 18.9% 373,879 19.3% 363,343 19.0% 364,690 19.6%
Investor real
estate loans 762,158 38.8% 756,620 38.5% 770,405 39.9% 777,591 40.7% 759,002 40.7%
Construction &
development
loans 228,591 11.6% 222,659 11.3% 193,444 10.0% 186,409 9.7% 173,270 9.3%
Multi-family
loans 92,913 4.7% 93,511 4.7% 93,477 4.8% 94,415 4.9% 95,556 5.1%
--------- ----- --------- -------- --------- --------- --------- ----- --------- -----
Total commercial
real estate
loans 1,083,662 55.1% 1,072,790 54.5% 1,057,326 54.7% 1,058,415 55.3% 1,027,828 55.1%
Residential
mortgage loans 513,650 26.1% 522,990 26.5% 501,104 25.9% 489,522 25.6% 472,747 25.3%
Consumer loans 760 0.0% 1,157 0.1% 1,029 0.1% 998 0.1% 809 0.0%
--------- ----- --------- -------- --------- --------- --------- ----- --------- -----
Total loans $1,968,835 100.0% $1,970,276 100.0% $1,933,338 100.0% $1,912,278 100.0% $1,866,074 100.0%
--------- ----- --------- -------- --------- --------- --------- ----- --------- -----
Less: Allowance
for loan credit
losses (19,983) (19,805) (19,714) (19,298) (18,826)
Net
deferred
loan
costs 4,908 5,084 4,770 4,637 4,398
--------- --------- --------- --------- ---------
Net loans $1,953,760 $1,955,555 $1,918,394 $1,897,617 $1,851,646
========= ========= ========= ========= =========
2026 2025
----------------- ---------------------------------------------------------------------------------------------
March 31 December 31 September 30 June 30 March 31
----------------- -------------------- --------------------- ----------------- -----------------
% of % of % of % of % of
Deposits $ Amount Total $ Amount Total $ Amount Total $ Amount Total $ Amount Total
--------- ----- --------- -------- --------- --------- --------- ----- --------- -----
Non-interest
bearing demand
deposits $ 458,197 23.1% $ 432,733 21.9% $ 446,925 22.7% $ 438,628 23.1% $ 437,822 22.8%
Interest-bearing
demand deposits:
NOW accounts(1) 362,057 18.2% 380,029 19.3% 366,655 18.6% 344,931 18.2% 355,752 18.5%
Money market
accounts(1) 372,107 18.7% 365,294 18.5% 360,640 18.3% 336,299 17.7% 349,634 18.2%
Savings accounts 33,525 1.7% 34,683 1.8% 39,427 2.0% 42,966 2.3% 42,583 2.2%
Certificates of
deposit
$250,000 or
more 340,851 17.1% 337,605 17.1% 337,800 17.2% 324,343 17.1% 322,630 16.8%
Less than
$250,000 80,058 4.0% 84,710 4.3% 85,719 4.4% 80,500 4.2% 79,305 4.1%
QwickRate$(R)$
certificates
of deposit - - 0.0% 249 0.0% 249 0.0% 249 0.1% 249 0.0%
IntraFi(R)
certificates
of deposit 39,047 2.0% 35,096 1.8% 29,451 1.5% 27,015 1.4% 36,522 1.9%
Brokered
deposits 301,886 15.2% 301,886 15.3% 301,962 15.3% 301,962 15.9% 297,678 15.5%
--------- ----- --------- -------- --------- --------- --------- ----- --------- -----
Total
deposits $1,987,728 100.0% $1,972,285 100.0% $1,968,828 100.0% $1,896,893 100.0% $1,922,175 100.0%
========= ===== ========= ======== ========= ========= ========= ===== ========= =====
Borrowings
Federal funds
purchased $ - - 0.0% $ - - 0.0% $ - - 0.0% $ 16,500 17.0% $ - - 0.0%
Federal Home Loan
Bank advances 56,000 69.2% 56,000 69.2% 56,000 69.3% 56,000 57.5% 56,000 69.3%
Subordinated debt,
net 24,896 30.8% 24,875 30.8% 24,854 30.7% 24,833 25.5% 24,812 30.7%
--------- ----- --------- -------- --------- --------- --------- ----- --------- -----
Total
borrowings $ 80,896 100.0% $ 80,875 100.0% $ 80,854 100.0% $ 97,333 100.0% $ 80,812 100.0%
--------- ----- --------- -------- --------- --------- --------- ----- --------- -----
Total deposits and
borrowings $2,068,624 $2,053,160 $2,049,682 $1,994,226 $2,002,987
========= ========= ========= ========= =========
Core customer
funding sources
(2) $1,685,842 82.5% $1,670,150 82.3% $1,666,617 82.3% $1,594,682 81.0% $1,624,248 82.1%
Wholesale funding
sources (3) 357,886 17.5% 358,135 17.7% 358,211 17.7% 374,711 19.0% 353,927 17.9%
--------- ----- --------- -------- --------- --------- --------- ----- --------- -----
Total funding
sources $2,043,728 100.0% $2,028,285 100.0% $2,024,828 100.0% $1,969,393 100.0% $1,978,175 100.0%
========= ===== ========= ======== ========= ========= ========= ===== ========= =====
(1) Includes IntraFi(R) accounts.
(2) Includes reciprocal IntraFi Demand(R) IntraFi Money Market(R) and
IntraFi CD(R) deposits, which are maintained by customers.
(3) Consists of QwickRate(R) certificates of deposit, brokered deposits,
federal funds purchased, Federal Home Loan Bank advances and Federal
Reserve Bank borrowings.
John Marshall Bancorp, Inc.
Average Balance Sheets, Interest and Rates (unaudited)
(Dollar amounts in thousands)
Three Months Ended March 31, Three Months Ended March 31,
2026 2025
------------------------------ ------------------------------
Interest Interest
Income / Average Income / Average
Average Average
(Dollars in thousands) Balance Expense Rate(3) Balance Expense Rate(3)
----------------------- ---------- --------- ------- ---------- --------- -------
Assets:
Securities:
Taxable $ 224,526 $ 1,281 2.31% $ 230,100 $ 1,155 2.04%
Tax-exempt(1) 1,378 11 3.24% 1,379 11 3.24%
--------- -------- --------- --------
Total securities $ 225,904 $ 1,292 2.32% $ 231,479 $ 1,166 2.04%
========= ======== ========= ========
Loans, net of unearned
income(2) :
Taxable 1,953,760 26,403 5.48% 1,851,627 24,679 5.41%
Tax-exempt(1) 20,405 232 4.61% 16,676 162 3.94%
--------- -------- --------- --------
Total loans, net
of unearned
income $1,974,165 $ 26,635 5.47% $1,868,303 $ 24,841 5.39%
========= ======== ========= ========
Interest-bearing
deposits in other
banks $ 131,744 $ 1,206 3.71% $ 120,948 $ 1,334 4.47%
--------- -------- --------- --------
Total
interest-earning
assets $2,331,813 $ 29,133 5.07% $2,220,730 $ 27,341 4.99%
========= ======== ========= ========
Total non-interest
earning assets 11,644 13,031
--------- ---------
Total assets $2,343,457 $2,233,761
========= =========
Liabilities &
Shareholders' Equity:
Interest-bearing
deposits
NOW accounts $ 371,418 $ 1,926 2.10% $ 357,206 $ 2,127 2.41%
Money market accounts 374,848 2,183 2.36% 339,248 2,281 2.73%
Savings accounts 34,972 69 0.80% 43,062 104 0.98%
Time deposits 756,391 7,495 4.02% 720,658 7,788 4.38%
--------- -------- --------- --------
Total interest-bearing
deposits $1,537,629 $ 11,673 3.08% $1,460,174 $ 12,300 3.42%
========= ======== ========= ========
Federal funds purchased 1 -- N/M -- -- N/M
Subordinated debt 24,883 349 5.69% 24,799 349 5.71%
Federal Home Loan Bank
advances 55,834 551 4.00% 56,001 559 4.05%
--------- -------- --------- --------
Total interest-bearing
liabilities $1,618,347 $ 12,573 3.15% $1,540,974 $ 13,208 3.48%
========= ======== ========= ========
Demand deposits 439,692 424,795
Other liabilities 16,091 16,433
--------- ---------
Total liabilities $2,074,130 $1,982,202
========= =========
Shareholders' equity $ 269,327 $ 251,559
========= =========
Total liabilities and
shareholders' equity $2,343,457 $2,233,761
========= =========
Tax-equivalent net
interest income and
spread (Non-GAAP)(1) $ 16,560 1.92% $ 14,133 1.51%
======= =======
Less: tax-equivalent
adjustment 51 36
-------- ------- -------- -------
Net interest income and
spread (GAAP) $ 16,509 1.91% $ 14,097 1.51%
======== ======= ======== =======
Interest income/earning
assets 5.06% 4.99%
Interest expense/earning
assets 2.19% 2.41%
------- -------
Net interest margin 2.87% 2.58%
======= =======
___________________
(1) Tax-equivalent income and related measures have been adjusted using the
federal statutory tax rate of 21%. The annualized taxable-equivalent
adjustments utilized in the above table to compute yields aggregated to
$51 thousand and $36 thousand for the three months ended March 31, 2026
and March 31, 2025, respectively.
(2) Non-accrual loans are included in the average balances.
(3) Rates and yields are annualized and calculated from rounded amounts in
thousands, which appear above.
Category: Earnings
View source version on businesswire.com: https://www.businesswire.com/news/home/20260429366558/en/
CONTACT: Christopher W. Bergstrom, (703) 584-0840
Kent D. Carstater, (703) 289-5922
(END) Dow Jones Newswires
April 29, 2026 08:30 ET (12:30 GMT)