RESTON, Va.--(BUSINESS WIRE)--
John Marshall Bank (OTCQB: JMSB) (the “Bank”) reported net income of
$2.6 million for the three months ended September 30, 2016, an increase
of $368 thousand or 16.4%, as compared to net income of $2.2 million for
the three months ended September 30, 2015. Net income per diluted share
was $0.25 during the three months ended September 30, 2016, compared to
$0.21 per diluted share during the same period in 2015.
The Bank’s three month results produced an annualized return of 1.05% on
average assets and 9.02% on average equity, compared to 1.01% and 8.39%,
respectively, for the same period a year ago. As of September 30, 2016,
the Bank’s tangible book value per share was $11.47, up 7.4% compared to
$10.68 as of September 30, 2015.
The Bank reported net income of $5.6 million for the nine months ended
September 30, 2016, a decrease of $1.0 million compared to $6.6 million
for the nine months ended September 30, 2015. The decrease in
year-over-year earnings was attributable to an increased loan loss
provision of $3.3 million for first nine months of 2016 compared to $1.1
million for the same period in 2015.
The Bank’s capital ratios remain well above regulatory minimums for well
capitalized banks. As of September 30, 2016, the Bank’s total risk-based
capital ratio was 12.5%, compared to 13.5% at September 30, 2015.
Balance Sheet Review
At September 30, 2016, total assets were $1.02 billion, an increase of
$132.9 million, or 15.0%, from total assets of $884.5 million at
September 30, 2015. Gross loans increased $88.7 million, or 11.6%, to
$855.0 million at September 30, 2016, compared to $766.3 million at
September 30, 2015. Year-over-year net loan growth, from September 30,
2016 to September 30, 2015, was $87.7 million, or 11.6%. The Bank’s
investment portfolio comprised of held-to-maturity, available-for-sale,
and restricted securities, increased $13.5 million, or 15.5%, to $100.6
million at September 30, 2016, compared to $87.2 million at September
30, 2015. As of September 30, 2016, the Bank held $45.3 million of its
investment portfolio as held-to-maturity, and $48.4 million as
available-for-sale. The Bank had $1.0 million in other real estate owned
(“OREO”) as of September 30, 2015, and no other real estate owned as of
September 30, 2016.
The Bank purchased $18.0 million of bank owned life insurance during the
first quarter of 2016. Bank owned life insurance represents insurance
policies on officers and directors of the Bank. The cash values of the
policies are estimates using information provided by insurance carriers.
These policies are carried at their cash surrender value, which
approximates their fair value. As of September 30, 2016, the estimated
fair value was $18.4 million.
Total deposits were $793.9 million at September 30, 2016, representing
an increase of $103.0 million, or 14.9%, compared to $690.9 million at
September 30, 2015. Total borrowings, consisting of Federal funds
purchased, Federal Home Loan Bank advances and customer repurchase
agreements, were $103.1 million at September 30, 2016, an increase of
$21.3 million, or 26.0%, compared to $81.8 million at September 30, 2015.
QwickRate certificates of deposit decreased by $4.8 million from $25.9
million at September 30, 2015 to $21.1 million at September 30, 2016.
CDARs increased $21.3 million from $52.8 million at September 30, 2015
to $74.1 million at September 30, 2016. Brokered certificates of deposit
increased by $18.1 million from $20.2 million at September 30, 2015 to
$38.2 million at September 30, 2016. Year-over-year Federal Home Loan
Bank advances increased by $13.0 million, or 18.6%. Core customer
funding sources increased by $93.0 million, or 14.2%, from $656.7
million at September 30, 2015 to $749.7 million at September 30, 2016.
Total shareholders’ equity was $116.2 million at September 30, 2016, an
increase of $9.3 million, or 8.7%, compared to $106.9 million at
September 30, 2015. The majority of the increase in shareholders’ equity
over the past year is attributed to net income retained during the past
twelve months. Total common shares outstanding increased from 10,011,624
at September 30, 2015 to 10,129,147 at September 30, 2016.
Income Statement Review
Net interest income
Net interest income, the Bank’s primary source of revenue, was $9.1
million for the three months ended September 30, 2016, up 6.1% from $8.6
million for the three months ended September 30, 2015. The net interest
margin was 3.77% during the third quarter of 2016, compared to 3.94%
during the third quarter of 2015. The decline in the net interest margin
from year-over-year is primarily attributed to a decline in the Bank’s
yield on earning assets to 4.42% during the third quarter of 2016 from
4.56% during the third quarter of 2015, which is substantially the
result of a 21 basis point year-over-year decline in loan yields
partially offset by an 11 basis point year-over-year increase in
securities yields.
For the nine months ended September 30, 2016, net interest income was
$26.6 million, up 6.4% from $25.0 million for the nine months ended
September 30, 2015. The net interest margin was 3.80% during the first
nine months of 2016, compared to 4.06% during the first nine months of
2015. The decline in the net interest margin from year-to-year is
primarily attributed to a decline in the Bank’s yield on earning assets
to 4.46% during the first nine months of 2016 from 4.68% during the
first nine months of 2015, which is substantially the result of a 22
basis point year-to-year decline in loan yields.
Despite the decline in the net interest margin over the past year, net
interest income increased by 6.1% and 6.4% during the three and nine
months ended September 30, 2016, compared to the same periods in 2015,
resulting primarily from increases in average earning assets of $97.2
million during the three month period ended September 30, 2016 and
$112.0 million during the first nine months of 2016, compared to the
same periods in 2015.
Provision for loan losses
The Bank recognized a provision for loan losses of $355 thousand during
the third quarter of 2016, compared to a provision of $470 thousand
during the third quarter of 2015. The Bank reported $726 thousand in net
loan charge-offs during the third quarter of 2016 and $343 thousand in
net loan charge-offs during the third quarter of 2015.
During the first nine months of 2016, the Bank recognized a provision
for loan losses of $3.3 million, compared to a provision of $1.1 million
during the first nine months of 2015. The Bank reported net loan
charge-offs of $2.7 million during the first nine months of 2016,
compared to net loan charge-offs of $621 thousand during the first nine
months of 2015. During the first quarter 2016, the Bank incurred a $1.9
million charge-off as previously disclosed in the earnings release for
the first quarter of 2016. During the third quarter, the Bank incurred
an additional $415 thousand charge-off related to the same borrower.
This amount was included in the additional provisions for loan loss
taken during the first quarter of 2016.
Noninterest income
The Bank’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 September 30, 2016, the
Bank reported total noninterest income of $267 thousand, compared to
$154 thousand during the third quarter of 2015.
For the nine months ended September 30, 2016, the Bank reported total
noninterest income of $736 thousand, compared to $422 thousand during
the first nine months of 2015, an increase of 74.4%. The year-over-year
increase for both the three and nine month periods ended September 30,
2016 was attributable to income related to bank owned life insurance
that was purchased in the first quarter of 2016.
Noninterest expense
The largest component of the Bank’s noninterest expense is employee
salaries and benefits. Salary and benefits expense increased by 7.6%, to
$3.1 million, during the third quarter of 2016 compared to $2.9 million
during the third quarter of 2015. All other operating expenses increased
by $101 thousand, or 5.3%, to $2.0 million, during the third quarter of
2016, compared to $1.9 million during the third quarter of 2015.
During the first nine months of 2016, salary and employee benefits
expense increased by 7.6%, to $9.2 million, compared to $8.6 million
during the first nine months of 2015. All other operating expenses
increased by 13.6%, or $758 thousand, to $6.3 million, during the first
nine months of 2016, compared to $5.6 million during the first nine
months of 2015.
The increase in other operating expense was associated to higher FDIC
insurance related to growth, franchise tax, loan collection fees related
to the non-performing loans and one-time costs incurred related to the
Bank’s core system conversion which took place in April 2016.
Asset Quality Review
As of September 30, 2016, non-performing assets were 0.03% of total
assets, down from 0.15% at September 30, 2015. The Bank’s allowance for
loan losses covered non-performing loans by 22.3 times as of September
30, 2016, compared to 19.1 times as of September 30, 2015.
As of September 30, 2016, there were no loans 30-89 days past due and
still accruing interest. As of September 30, 2015, there were $2.5
million in loans 30-89 days past due and still accruing interest.
Troubled debt restructurings were $512 thousand at September 30, 2016, a
decrease of $1.0 million, or 65.6%, from $1.5 million as of September
30, 2015. All troubled debt restructurings were performing in accordance
with modified terms as of September 30, 2016. The Bank had $1.0 million
in other real estate owned as of September 30, 2015, and no other real
estate owned as of September 30, 2016.
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 two limited-service commercial branches
located in Washington, DC and 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 Bank 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 Bank’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 Bank’s past results are not necessarily
indicative of future performance.
|
|
| John Marshall Bank |
|
|
| Balance Sheets |
| (In thousands) |
|
|
|
| |
| |
| |
| % Change |
| | September 30,
2016 | | December 31,
2015 | | September 30,
2015 | | Current
Year |
| Year Over
Year |
| Assets | | (Unaudited) | | | | (Unaudited) | | | | |
| | | | | | | | | |
|
|
Cash and due from banks
| |
$
|
7,610
| |
$
|
8,217
| | |
$
|
5,581
| | |
-7.4
|
%
| |
36.4
|
%
|
|
Interest-bearing deposits in banks
| | |
31,067
| | |
46,738
| | | |
19,961
| | |
-33.5
|
%
| |
55.6
|
%
|
|
Securities available-for-sale, at fair value
| | |
48,397
| | |
32,145
| | | |
33,384
| | |
50.6
|
%
| |
45.0
|
%
|
Securities held-to-maturity, fair value of $46,443 at 9/30/2016,
$46,780 at 12/31/2015 and $48,267 at 9/30/2015 | | |
45,292
| | |
46,479
| | | |
47,610
| | |
-2.6
|
%
| |
-4.9
|
%
|
|
Restricted securities, at cost
| | |
6,959
| | |
6,210
| | | |
6,168
| | |
12.1
|
%
| |
12.8
|
%
|
Loans, net of allowance for loan losses of $7,799 at 9/30/2016;
$7,130 at 12/31/2015 and $6,937 at 9/30/2015 | | |
845,681
| | |
774,633
| | | |
757,976
| | |
9.2
|
%
| |
11.6
|
%
|
|
Bank premises and equipment, net
| | |
2,520
| | |
2,690
| | | |
2,744
| | |
-6.3
|
%
| |
-8.2
|
%
|
|
Accrued interest receivable
| | |
2,527
| | |
2,318
| | | |
2,290
| | |
9.0
|
%
| |
10.3
|
%
|
|
Bank owned life insurance
| | |
18,377
| | |
- -
| | | |
- -
| | |
n/a
| | |
n/a
| |
|
Other real estate owned
| | |
- -
| | |
- -
| | | |
998
| | |
n/a
| | |
n/a
| |
|
Other assets
| |
|
9,047
| |
|
9,190
|
| |
|
7,825
|
| |
-1.6
|
%
| |
15.6
|
%
|
| | | | | | | | | |
|
|
Total assets
| |
$
|
1,017,477
| |
$
|
928,620
|
| |
$
|
884,537
|
| |
9.6
|
%
| |
15.0
|
%
|
| | | | | | | | | |
|
| Liabilities and Shareholders' Equity | | | | | | | | | | |
| | | | | | | | | |
|
| Liabilities | | | | | | | | | | |
|
Deposits:
| | | | | | | | | | |
|
Non-interest bearing demand deposits
| |
$
|
162,899
| |
$
|
136,361
| | |
$
|
130,844
| | |
19.5
|
%
| |
24.5
|
%
|
|
Interest bearing demand deposits
| | |
236,503
| | |
235,313
| | | |
219,367
| | |
0.5
|
%
| |
7.8
|
%
|
|
Savings deposits
| | |
6,038
| | |
17,154
| | | |
5,717
| | |
-64.8
|
%
| |
5.6
|
%
|
|
Time deposits
| |
|
388,438
| |
|
342,025
|
| |
|
334,998
|
| |
13.6
|
%
| |
16.0
|
%
|
|
Total deposits
| | |
793,878
| | |
730,853
| | | |
690,926
| | |
8.6
|
%
| |
14.9
|
%
|
|
Federal funds purchased
| | |
4,990
| | |
- -
| | | |
- -
| | |
n/a
| | |
n/a
| |
|
Repurchase agreements
| | |
15,142
| | |
11,972
| | | |
11,822
| | |
26.5
|
%
| |
28.1
|
%
|
| Federal Home Loan Bank advances
| | |
83,000
| | |
71,000
| | | |
70,000
| | |
16.9
|
%
| |
18.6
|
%
|
|
Accrued interest payable
| | |
210
| | |
109
| | | |
118
| | |
92.7
|
%
| |
77.9
|
%
|
|
Other liabilities
| |
|
4,043
| |
|
5,384
|
| |
|
4,727
|
| |
-24.9
|
%
| |
-14.5
|
%
|
|
Total liabilities
| |
|
901,263
| |
|
819,318
|
| |
|
777,593
|
| |
10.0
|
%
| |
15.9
|
%
|
| | | | | | | | | |
|
| Shareholders' Equity | | | | | | | | | | |
Preferred stock, par value $5 per share; authorized 1,000,000
shares; none issued
| | |
- -
| | |
- -
| | | |
- -
| | |
- -
| | |
- -
| |
Common stock, nonvoting, par value $5 per share; authorized
1,000,000 shares; none issued
| | |
- -
| | |
- -
| | | |
- -
| | |
- -
| | |
- -
| |
Common stock, voting, par value $5 per share; authorized
20,000,000 shares; issued and outstanding, 10,129,147 shares at
9/30/2016, 10,016,574 at 12/31/2015, and 10,011,624 at 9/30/2015 | | |
50,646
| | |
50,083
| | | |
50,058
| | |
1.1
|
%
| |
1.2
|
%
|
|
Additional paid-in capital
| | |
31,797
| | |
31,313
| | | |
31,149
| | |
1.5
|
%
| |
2.1
|
%
|
|
Retained earnings
| | |
33,752
| | |
28,153
| | | |
25,839
| | |
19.9
|
%
| |
30.6
|
%
|
|
Accumulated other comprehensive income (loss)
| |
|
19
| |
|
(247
|
)
| |
|
(102
|
)
| |
107.7
|
%
| |
118.6
|
%
|
| | | | | | | | | |
|
|
Total shareholders' equity
| |
|
116,214
| |
|
109,302
|
| |
|
106,944
|
| |
6.3
|
%
| |
8.7
|
%
|
| | | | | | | | | |
|
|
Total liabilities and shareholders' equity
| |
$
|
1,017,477
| |
$
|
928,620
|
| |
$
|
884,537
|
| |
9.6
|
%
| |
15.0
|
%
|
| | | | | | | | | | | | | | | | |
|
|
|
| John Marshall Bank |
| Statements of Income |
|
|
| (Dollar amounts in thousands, except per share data) |
|
|
|
| Three Months Ended
September 30, |
| |
| Nine Months Ended
September 30, |
| |
| | 2016 |
| 2015 | | % Change | | 2016 |
| 2015 | | % Change |
| | (Unaudited) | | (Unaudited) | | | | (Unaudited) | | (Unaudited) | | |
| Interest and Dividend Income | | | | | | | | | | | | |
|
Interest and fees on loans
| |
$
|
10,139
| |
$
|
9,505
| |
6.7
|
%
| |
$
|
29,633
| |
$
|
27,461
| |
7.9
|
%
|
|
Interest on investment securities, taxable
| | |
387
| | |
332
| |
16.6
|
%
| | |
1,035
| | |
959
| |
7.9
|
%
|
|
Interest on investment securities, tax-exempt
| | |
45
| | |
26
| |
73.1
|
%
| | |
120
| | |
78
| |
53.8
|
%
|
|
Dividends
| | |
84
| | |
72
| |
16.7
|
%
| | |
248
| | |
214
| |
15.9
|
%
|
|
Interest on deposits in banks
| |
|
39
| |
|
16
| |
143.8
|
%
| |
|
122
| |
|
36
| |
238.9
|
%
|
|
Total interest and dividend income
| |
|
10,694
| |
|
9,951
| |
7.5
|
%
| |
|
31,158
| |
|
28,748
| |
8.4
|
%
|
| | | | | | | | | | | |
|
| Interest Expense | | | | | | | | | | | | |
|
Deposits
| | |
1,360
| | |
1,194
| |
13.9
|
%
| | |
4,003
| | |
3,318
| |
20.6
|
%
|
| Federal Home Loan Bank advances
| | |
197
| | |
147
| |
34.0
|
%
| | |
540
| | |
405
| |
33.3
|
%
|
|
Other short-term borrowings
| |
|
17
| |
|
17
| |
0.0
|
%
| |
|
48
| |
|
49
| |
-2.0
|
%
|
|
Total interest expense
| |
|
1,574
| |
|
1,358
| |
15.9
|
%
| |
|
4,591
| |
|
3,772
| |
21.7
|
%
|
| | | | | | | | | | | |
|
|
Net interest income
| | |
9,120
| | |
8,593
| |
6.1
|
%
| | |
26,567
| | |
24,976
| |
6.4
|
%
|
| | | | | | | | | | | |
|
| Provision for loan losses | |
|
355
| |
|
470
| |
-24.5
|
%
| |
|
3,330
| |
|
1,052
| |
216.5
|
%
|
| | | | | | | | | | | |
|
|
Net interest income after provision for loan losses
| |
|
8,765
| |
|
8,123
| |
7.9
|
%
| |
|
23,237
| |
|
23,924
| |
-2.9
|
%
|
| | | | | | | | | | | |
|
| Noninterest Income | | | | | | | | | | | | |
|
Service charges on deposit accounts
| | |
87
| | |
137
| |
-36.3
|
%
| | |
307
| | |
369
| |
-16.8
|
%
|
|
Bank owned life insurance
| | |
163
| | |
- -
| |
n/a
| | | |
377
| | |
- -
| |
n/a
| |
|
Other service charges and fees
| |
|
17
| |
|
17
| |
1.1
|
%
| |
|
52
| |
|
53
| |
-1.9
|
%
|
|
Total noninterest income
| |
|
267
| |
|
154
| |
73.4
|
%
| |
|
736
| |
|
422
| |
74.4
|
%
|
| | | | | | | | | | | |
|
| Noninterest Expenses | | | | | | | | | | | | |
|
Salaries and employee benefits
| | |
3,073
| | |
2,857
| |
7.6
|
%
| | |
9,205
| | |
8,556
| |
7.6
|
%
|
|
Occupancy expense of premises
| | |
429
| | |
451
| |
-4.9
|
%
| | |
1,261
| | |
1,344
| |
-6.2
|
%
|
|
Furniture and equipment expenses
| | |
301
| | |
266
| |
13.2
|
%
| | |
943
| | |
785
| |
20.1
|
%
|
|
Other operating expenses
| |
|
1,293
| |
|
1,205
| |
7.3
|
%
| |
|
4,143
| |
|
3,460
| |
19.7
|
%
|
|
Total noninterest expenses
| |
|
5,096
| |
|
4,779
| |
6.6
|
%
| |
|
15,552
| |
|
14,145
| |
9.9
|
%
|
| | | | | | | | | | | |
|
|
Income before income taxes
| | |
3,936
| | |
3,498
| |
12.5
|
%
| | |
8,421
| | |
10,201
| |
-17.4
|
%
|
| | | | | | | | | | | |
|
| Income tax expense | |
|
1,323
| |
|
1,253
| |
5.6
|
%
| |
|
2,823
| |
|
3,648
| |
-22.6
|
%
|
| | | | | | | | | | | |
|
|
Net income
| |
$
|
2,613
| |
$
|
2,245
| |
16.4
|
%
| |
$
|
5,598
| |
$
|
6,553
| |
-14.6
|
%
|
| | | | | | | | | | | |
|
| Earnings Per Share | | | | | | | | | | | | |
|
Basic
| |
$
|
0.26
| |
$
|
0.22
| |
18.2
|
%
| |
$
|
0.56
| |
$
|
0.66
| |
-15.2
|
%
|
|
Diluted
| |
$
|
0.25
| |
$
|
0.21
| |
19.0
|
%
| |
$
|
0.53
| |
$
|
0.63
| |
-15.9
|
%
|
| | | | | | | | | | | |
|
|
|
| John Marshall Bank |
|
|
| Loan, Deposit and Borrowing Detail (Unaudited) |
| (Dollar amounts in thousands) |
|
| |
| |
| |
| |
| |
| |
| |
| |
| | September 30, 2016 | | December 31, 2015 | | September 30, 2015 | | Percentage Change |
| Loans | | $ Amount | | % of Total | | $ Amount | | % of Total | | $ Amount | | % of Total | | Last 9 Mos | | Last 12 Mos |
|
Mortgage loans on real estate
| | | | | | | | | | | | | | | | |
|
Commercial
| |
$
|
503,576
| | |
58.9
|
%
| |
$
|
441,309
| | |
56.3
|
%
| |
$
|
420,334
| | |
54.9
|
%
| |
14.1
|
%
| |
19.8
|
%
|
|
Construction and land development
| | |
173,867
| | |
20.3
|
%
| | |
150,786
| | |
19.3
|
%
| | |
169,564
| | |
22.1
|
%
| |
15.3
|
%
| |
2.5
|
%
|
|
Residential
| |
|
97,758
|
| |
11.4
|
%
| |
|
95,496
|
| |
12.2
|
%
| |
|
93,803
|
| |
12.2
|
%
| |
2.4
|
%
| |
4.2
|
%
|
|
Total mortgage loans on real estate
| |
$
|
775,201
| | |
90.6
|
%
| |
$
|
687,591
| | |
87.8
|
%
| |
$
|
683,701
| | |
89.2
|
%
| |
12.7
|
%
| |
13.4
|
%
|
|
Commercial loans
| | |
78,120
| | |
9.2
|
%
| | |
94,371
| | |
12.0
|
%
| | |
81,684
| | |
10.7
|
%
| |
-17.2
|
%
| |
-4.4
|
%
|
|
Consumer loans
| |
|
1,655
|
| |
0.2
|
%
| |
|
1,203
|
| |
0.2
|
%
| |
|
884
|
| |
0.1
|
%
| |
37.6
|
%
| |
87.2
|
%
|
|
Total loans
| |
$
|
854,976
| | |
100.0
|
%
| |
$
|
783,165
| | |
100.0
|
%
| |
$
|
766,269
| | |
100.0
|
%
| |
9.2
|
%
| |
11.6
|
%
|
|
Less: Allowance for loan losses
| | |
(7,799
|
)
| | | | |
(7,130
|
)
| | | | |
(6,937
|
)
| | | | | | |
|
Net deferred loan fees
| |
|
(1,496
|
)
| | | |
|
(1,402
|
)
| | | |
|
(1,356
|
)
| | | | | | |
|
Net loans
| |
$
|
845,681
|
| | | |
$
|
774,633
|
| | | |
$
|
757,976
|
| | | | | | |
| | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | |
|
| | September 30, 2016 | | December 31, 2015 | | September 30, 2015 | | Percentage Change |
| Deposits | | $ Amount | | % of Total | | $ Amount | | % of Total | | $ Amount | | % of Total | | Last 9 Mos | | Last 12 Mos |
|
Noninterest-bearing demand deposits
| |
$
|
162,899
| | |
20.5
|
%
| |
$
|
136,361
| | |
18.7
|
%
| |
$
|
130,844
| | |
19.0
|
%
| |
19.5
|
%
| |
24.5
|
%
|
|
Interest-bearing demand deposits:
| | | | | | | | | | | | | | | | |
|
NOW accounts
| | |
16,866
| | |
2.1
|
%
| | |
23,496
| | |
3.2
|
%
| | |
18,650
| | |
2.7
|
%
| |
-28.2
|
%
| |
-9.6
|
%
|
|
Money market accounts
| | |
209,633
| | |
26.4
|
%
| | |
211,817
| | |
29.0
|
%
| | |
200,717
| | |
29.1
|
%
| |
-1.0
|
%
| |
4.4
|
%
|
|
Savings accounts
| | |
6,038
| | |
0.8
|
%
| | |
17,154
| | |
2.3
|
%
| | |
5,717
| | |
0.8
|
%
| |
-64.8
|
%
| |
5.6
|
%
|
|
Certificates of deposit
| | | | | | | | | | | | | | | | |
| $250,000 or more
| | |
162,552
| | |
20.5
|
%
| | |
137,381
| | |
18.8
|
%
| | |
143,402
| | |
29.7
|
%
| |
18.3
|
%
| |
13.4
|
%
|
|
Less than $250,000 | | |
102,406
| | |
12.9
|
%
| | |
94,164
| | |
12.9
|
%
| | |
92,761
| | |
4.5
|
%
| |
8.8
|
%
| |
10.4
|
%
|
|
QwickRate® Certificates of deposit
| | |
21,104
| | |
2.7
|
%
| | |
25,018
| | |
3.4
|
%
| | |
25,880
| | |
3.7
|
%
| |
-15.6
|
%
| |
-18.5
|
%
|
|
CDARS®
| | |
74,131
| | |
9.3
|
%
| | |
62,943
| | |
8.6
|
%
| | |
52,794
| | |
7.6
|
%
| |
17.8
|
%
| |
40.4
|
%
|
|
Brokered deposits
| |
|
38,249
|
| |
4.8
|
%
| |
|
22,519
|
| |
3.1
|
%
| |
|
20,161
|
| |
2.9
|
%
| |
69.9
|
%
| |
89.7
|
%
|
|
Total deposits
| |
$
|
793,878
|
| |
100.0
|
%
| |
$
|
730,853
|
| |
100.0
|
%
| |
$
|
690,926
|
| |
100.0
|
%
| |
8.6
|
%
| |
14.9
|
%
|
| | | | | | | | | | | | | | | |
|
| Borrowings | | | | | | | | | | | | | | | | |
|
Federal funds purchased
| |
$
|
4,990
| | |
4.8
|
%
| |
$
|
- -
| | |
0.0
|
%
| |
$
|
- -
| | |
0.0
|
%
| |
n/a
| | |
n/a
| |
|
Customer repurchase agreements
| | |
15,142
| | |
14.7
|
%
| | |
11,972
| | |
14.4
|
%
| | |
11,822
| | |
14.4
|
%
| |
26.5
|
%
| |
28.1
|
%
|
| Federal Home Loan Bank advances
| |
|
83,000
|
| |
80.5
|
%
| |
|
71,000
|
| |
85.6
|
%
| |
|
70,000
|
| |
85.6
|
%
| |
16.9
|
%
| |
18.6
|
%
|
|
Total borrowings
| |
$
|
103,132
|
| |
100.0
|
%
| |
$
|
82,972
|
| |
100.0
|
%
| |
$
|
81,822
|
| |
100.0
|
%
| |
24.3
|
%
| |
26.0
|
%
|
| | | | | | | | | | | | | | | |
|
|
Total deposits and borrowings
| |
$
|
897,010
|
| | | |
$
|
813,825
|
| | | |
$
|
772,748
|
| | | |
10.2
|
%
| |
16.1
|
%
|
| | | | | | | | | | | | | | | |
|
|
Core customer funding sources (1)
| |
$
|
749,667
| | |
83.6
|
%
| |
$
|
695,288
| | |
85.4
|
%
| |
$
|
656,707
| | |
85.0
|
%
| |
7.8
|
%
| |
14.2
|
%
|
|
Wholesale funding sources (2)
| |
|
147,343
|
| |
16.4
|
%
| |
|
118,537
|
| |
14.6
|
%
| |
|
116,041
|
| |
15.0
|
%
| |
24.3
|
%
| |
27.0
|
%
|
|
Total funding sources
| |
$
|
897,010
|
| |
100.0
|
%
| |
$
|
813,825
|
| |
100.0
|
%
| |
$
|
772,748
|
| |
100.0
|
%
| |
10.2
|
%
| |
16.1
|
%
|
| | | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
(1)
|
|
Includes CDARS(r), which are all reciprocal deposits maintained by
Bank customers, and repurchase agreements, which represent sweep
accounts tied to customer operating accounts.
|
|
(2)
| |
Consists of QwickRate(r) certificates of deposit, brokered deposits,
Federal Home Loan Bank advances and Federal funds purchased
|
| |
|
|
|
| John Marshall Bank |
| Average Balance Sheets, Interest and Rates (unaudited) |
| (Dollar amounts in thousands) |
|
|
|
| Three Months Ended September 30, 2016 |
| Three Months Ended September 30, 2015 |
| | Average
Balance |
| Interest
Income-
Expense |
| Average
Yields
/Rates | | Average
Balance |
| Interest
Income-
Expense |
| Average
Yields
/Rates |
| Assets | | | | | | | | | | | | |
|
Securities
| |
$
|
99,024
| |
$
|
516
| |
2.07
|
%
| |
$
|
86,822
| |
$
|
430
| |
1.96
|
%
|
|
Loans, net of unearned income
| | |
835,281
| | |
10,139
| |
4.83
|
%
| | |
747,500
| | |
9,505
| |
5.04
|
%
|
|
Interest-bearing deposits in other banks
| | |
28,948
| | |
39
| |
0.54
|
%
| | |
31,758
| | |
16
| |
0.20
|
%
|
|
Federal funds sold
| |
|
18
| |
|
-
| |
0.00
|
%
| |
|
-
| |
|
-
| |
0.00
|
%
|
| Total interest-earning assets | |
$
|
963,271
| |
$
|
10,694
| |
4.42
|
%
| |
$
|
866,080
| |
$
|
9,951
| |
4.56
|
%
|
|
Other assets
| |
|
30,822
| | | | | |
|
13,089
| | | | |
| Total assets | |
$
|
994,093
| | | | | |
$
|
879,169
| | | | |
| Liabilities & Shareholders' equity | | | | | | | | | | | | |
|
Interest-bearing deposits
| | | | | | | | | | | | |
|
NOW accounts
| |
$
|
13,634
| |
$
|
13
| |
0.38
|
%
| |
$
|
15,730
| |
$
|
12
| |
0.30
|
%
|
|
Money market accounts
| | |
218,365
| | |
263
| |
0.48
|
%
| | |
203,194
| | |
274
| |
0.53
|
%
|
|
Savings accounts
| | |
6,673
| | |
4
| |
0.24
|
%
| | |
5,967
| | |
5
| |
0.34
|
%
|
|
Time deposits
| |
|
383,935
| |
|
1,080
| |
1.12
|
%
| |
|
332,680
| |
|
904
| |
1.08
|
%
|
|
Total interest-bearing deposits
| |
$
|
622,607
| |
$
|
1,360
| |
0.87
|
%
| |
$
|
557,571
| |
$
|
1,195
| |
0.85
|
%
|
Securities sold under agreement to repurchase and federal funds
purchased
| |
$
|
16,037
| |
$
|
17
| |
0.42
|
%
| |
$
|
15,758
| |
$
|
17
| |
0.43
|
%
|
|
Other borrowed funds
| |
|
77,804
| |
|
197
| |
1.01
|
%
| |
|
62,326
| |
|
147
| |
0.94
|
%
|
| Total interest-bearing liabilities | |
$
|
716,448
| |
$
|
1,574
| |
0.87
|
%
| |
$
|
635,655
| |
$
|
1,359
| |
0.85
|
%
|
|
Demand deposits and other liabilities
| |
|
162,404
| | | | | |
|
137,314
| | | | |
| Total liabilities | |
$
|
878,852
| | | | | |
$
|
772,969
| | | | |
|
Shareholders' equity
| |
|
115,241
| | | | | |
|
106,200
| | | | |
| Total liabilities and shareholders' equity | |
$
|
994,093
| | | | | |
$
|
879,169
| | | | |
|
Interest rate spread
| | | | | |
3.55
|
%
| | | | | |
3.71
|
%
|
| Net interest income and margin | | | |
$
|
9,120
| |
3.77
|
%
| | | |
$
|
8,592
| |
3.94
|
%
|
| | | | | | | | | | | |
|
| | | | | | | | | | | |
|
| | Nine Months Ended September 30, 2016 | | Nine Months Ended September 30, 2015 |
| | Average
Balance | | Interest
Income-
Expense | | Average
Yields
/Rates | | Average
Balance | | Interest
Income-
Expense | | Average
Yields
/Rates |
| Assets | | | | | | | | | | | | |
|
Securities
| |
$
|
92,432
| |
$
|
1,403
| |
2.03
|
%
| |
$
|
82,173
| |
$
|
1,251
| |
2.04
|
%
|
|
Loans, net of unearned income
| | |
809,223
| | |
29,633
| |
4.89
|
%
| | |
717,880
| | |
27,461
| |
5.11
|
%
|
|
Interest-bearing deposits in other banks
| | |
31,914
| | |
122
| |
0.51
|
%
| | |
21,539
| | |
36
| |
0.22
|
%
|
|
Federal funds sold
| |
|
6
| |
|
-
| |
0.00
|
%
| |
|
-
| |
|
-
| |
0.00
|
%
|
| Total interest-earning assets | |
$
|
933,575
| |
$
|
31,158
| |
4.46
|
%
| |
$
|
821,592
| |
$
|
28,748
| |
4.68
|
%
|
|
Other assets
| |
|
26,682
| | | | | |
|
15,611
| | | | |
| Total assets | |
$
|
960,257
| | | | | |
$
|
837,203
| | | | |
| Liabilities & Shareholders' equity | | | | | | | | | | | | |
|
Interest-bearing deposits
| | | | | | | | | | | | |
|
NOW accounts
| |
$
|
16,258
| |
$
|
48
| |
0.40
|
%
| |
$
|
14,480
| |
$
|
31
| |
0.28
|
%
|
|
Money market accounts
| | |
216,035
| | |
835
| |
0.52
|
%
| | |
200,013
| | |
796
| |
0.53
|
%
|
|
Savings accounts
| | |
10,750
| | |
36
| |
0.44
|
%
| | |
6,529
| | |
16
| |
0.32
|
%
|
|
Time deposits
| |
|
367,854
| |
|
3,084
| |
1.12
|
%
| |
|
311,664
| |
|
2,475
| |
1.06
|
%
|
|
Total interest-bearing deposits
| |
$
|
610,897
| |
$
|
4,003
| |
0.88
|
%
| |
$
|
532,686
| |
$
|
3,318
| |
0.83
|
%
|
Securities sold under agreement to repurchase and federal funds
purchased
| |
$
|
15,146
| |
$
|
48
| |
0.42
|
%
| |
$
|
15,261
| |
$
|
49
| |
0.43
|
%
|
|
Other borrowed funds
| |
|
71,223
| |
|
540
| |
1.01
|
%
| |
|
56,901
| |
|
405
| |
0.95
|
%
|
| Total interest-bearing liabilities | |
$
|
697,266
| |
$
|
4,591
| |
0.88
|
%
| |
$
|
604,848
| |
$
|
3,772
| |
0.83
|
%
|
|
Demand deposits and other liabilities
| |
|
150,165
| | | | | |
|
128,607
| | | | |
| Total liabilities | |
$
|
847,431
| | | | | |
$
|
733,455
| | | | |
|
Shareholders' equity
| |
|
112,826
| | | | | |
|
103,748
| | | | |
| Total liabilities and shareholders' equity | |
$
|
960,257
| | | | | |
$
|
837,203
| | | | |
|
Interest rate spread
| | | | | |
3.58
|
%
| | | | | |
3.85
|
%
|
| Net interest income and margin | | | |
$
|
26,567
| |
3.80
|
%
| | | |
$
|
24,976
| |
4.06
|
%
|
| | | | | | | | | | | |
|
|
|
| John Marshall Bank |
| Financial Highlights (Unaudited) |
| (Dollar amounts in thousands, except per share data) |
|
|
|
| At or For the Three Months Ended |
| At or For the Nine Months Ended |
| | September 30, | | September 30, |
| | 2016 |
| 2015 | | 2016 |
| 2015 |
| Per share Data and Shares Outstanding | | | | | | | | |
|
Earnings per share - basic
| |
$
|
0.26
| | |
$
|
0.22
| | |
$
|
0.56
| | |
$
|
0.66
| |
|
Earnings per share - diluted
| |
$
|
0.25
| | |
$
|
0.21
| | |
$
|
0.53
| | |
$
|
0.63
| |
|
Tangible book value per share
| |
$
|
11.47
| | |
$
|
10.68
| | |
$
|
11.47
| | |
$
|
10.68
| |
|
Weighted average common shares (basic)
| | |
10,085,689
| | | |
10,004,168
| | | |
10,047,960
| | | |
9,986,544
| |
|
Weighted average common shares (diluted)
| | |
10,559,569
| | | |
10,486,550
| | | |
10,543,594
| | | |
10,471,011
| |
|
Common shares outstanding at end of period
| | |
10,129,147
| | | |
10,011,624
| | | |
10,129,147
| | | |
10,011,624
| |
| | | | | | | |
|
| Performance Ratios | | | | | | | | |
|
Return on average assets (annualized)
| | |
1.05
|
%
| | |
1.01
|
%
| | |
0.78
|
%
| | |
1.05
|
%
|
|
Return on average equity (annualized)
| | |
9.02
|
%
| | |
8.39
|
%
| | |
6.63
|
%
| | |
8.44
|
%
|
|
Yield on earning assets (annualized)
| | |
4.42
|
%
| | |
4.56
|
%
| | |
4.46
|
%
| | |
4.68
|
%
|
|
Cost of interest bearing liabilities (annualized)
| | |
0.87
|
%
| | |
0.85
|
%
| | |
0.88
|
%
| | |
0.83
|
%
|
|
Net interest spread
| | |
3.55
|
%
| | |
3.71
|
%
| | |
3.58
|
%
| | |
3.85
|
%
|
|
Net interest margin
| | |
3.77
|
%
| | |
3.94
|
%
| | |
3.80
|
%
| | |
4.06
|
%
|
|
Noninterest income as a percentage of average assets (annualized)
| | |
0.11
|
%
| | |
0.07
|
%
| | |
0.10
|
%
| | |
0.07
|
%
|
|
Noninterest expense to average assets (annualized)
| | |
2.04
|
%
| | |
2.16
|
%
| | |
2.16
|
%
| | |
2.26
|
%
|
|
Efficiency ratio
| | |
54.3
|
%
| | |
54.6
|
%
| | |
57.0
|
%
| | |
55.7
|
%
|
| | | | | | | |
|
| Asset Quality | | | | | | | | |
|
Loans Past Due 30-89 Days and accruing int
| |
$
|
-
| | |
$
|
2,539
| | |
$
|
-
| | |
$
|
2,539
| |
|
Loans Past Due 90 days or more and accruing int
| |
$
|
-
| | |
$
|
-
| | |
$
|
-
| | |
$
|
-
| |
|
Non Accrual Loans
| |
$
|
349
| | |
$
|
364
| | |
$
|
349
| | |
$
|
364
| |
|
OREO
| |
$
|
-
| | |
$
|
998
| | |
$
|
-
| | |
$
|
998
| |
|
Non-performing assets (1)
| |
$
|
349
| | |
$
|
1,362
| | |
$
|
349
| | |
$
|
1,362
| |
|
Non-performing assets to total assets
| | |
0.03
|
%
| | |
0.15
|
%
| | |
0.03
|
%
| | |
0.15
|
%
|
|
Allowance for loan losses to total loans
| | |
0.91
|
%
| | |
0.91
|
%
| | |
0.91
|
%
| | |
0.91
|
%
|
|
Allowance for loan losses to non-performing loans
| | |
22.3
| | | |
19.1
| | | |
22.3
| | | |
19.1
| |
|
Net loan chargeoffs
| |
$
|
726
| | |
$
|
343
| | |
$
|
2,661
| | |
$
|
621
| |
|
Net charge-offs to average loans (annualized)
| | |
0.35
|
%
| | |
0.18
|
%
| | |
0.38
|
%
| | |
0.12
|
%
|
|
Troubled debt restructurings (total)
| |
$
|
512
| | |
$
|
1,489
| | |
$
|
512
| | |
$
|
1,489
| |
|
Performing in accordance with modified terms
| |
$
|
512
| | |
$
|
1,489
| | |
$
|
512
| | |
$
|
1,489
| |
|
Not performing in accordance with modified terms
| |
$
|
-
| | |
$
|
-
| | |
$
|
-
| | |
$
|
-
| |
|
Other real estate owned
| |
$
|
-
| | |
$
|
998
| | |
$
|
-
| | |
$
|
998
| |
| | | | | | | |
|
| Regulatory Capital Ratios | | | | | | | | |
|
Total risk-based capital ratio
| | |
12.5
|
%
| | |
13.5
|
%
| | |
12.5
|
%
| | |
13.5
|
%
|
|
Tier 1 risk-based capital ratio
| | |
11.7
|
%
| | |
12.7
|
%
| | |
11.7
|
%
| | |
12.7
|
%
|
|
Leverage ratio
| | |
11.7
|
%
| | |
12.2
|
%
| | |
11.7
|
%
| | |
12.2
|
%
|
|
Common equity tier 1 ratio
| | |
11.7
|
%
| | |
12.7
|
%
| | |
11.7
|
%
| | |
12.7
|
%
|
| | | | | | | |
|
| Other Information | | | | | | | | |
|
Effective income tax rate
| | |
33.6
|
%
| | |
35.8
|
%
| | |
33.5
|
%
| | |
35.8
|
%
|
|
Tangible equity / tangible assets
| | |
11.4
|
%
| | |
12.1
|
%
| | |
11.4
|
%
| | |
12.1
|
%
|
|
Average tangible equity / average tangible assets
| | |
11.6
|
%
| | |
12.1
|
%
| | |
11.7
|
%
| | |
12.4
|
%
|
|
Number of full time equivalent employees
| | |
111
| | | |
106
| | | |
111
| | | |
106
| |
|
# Full service branch offices
| | |
5
| | | |
5
| | | |
5
| | | |
5
| |
|
# Loan production or limited service branch offices
| | |
2
| | | |
1
| | | |
2
| | | |
1
| |
| | | | | | | | | | | | | | | |
|
|
(1)
|
|
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.
|
| |
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20161027006540/en/
John Marshall Bank
John R. Maxwell, 703-584-0840
Source: John Marshall Bank