RESTON, Va.--(BUSINESS WIRE)--
John Marshall Bank (OTCQB: JMSB) (the “Bank”) reported net income of
$2.4 million for the three months ended June 30, 2016, an increase of
$225 thousand or 10.2%, as compared to net income of $2.2 million for
the three months ended June 30, 2015. Net income per diluted share was
$0.23 per share during the three months ending June 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 1.03% on
average assets and 8.71% on average equity, compared to 1.05% and 8.52%,
respectively, for the same period a year ago. As of June 30, 2016, the
Bank’s tangible book value per share was $11.24, up 7.7% compared to
$10.44 as of June 30, 2015.
The Bank reported net income of $3.0 million for the six months ended
June 30, 2016, a decrease of $1.3 million compared to $4.3 million for
the sixth months ended June 30, 2015. The decrease in year-over-year
earnings was attributable to an increased loan loss provision of $3.0
million for first six months of 2016 compared to $582 thousand for the
same period in 2015.
The Bank’s capital ratios remain well above regulatory minimums for well
capitalized banks. As of June 30, 2016, the Bank’s total risk-based
capital ratio was 12.7%, compared to 13.5% at June 30, 2015.
Balance Sheet Review
At June 30, 2016, total assets were $975.6 million, an increase of
$119.8 million, or 14.0%, from total assets of $855.8 million at June
30, 2015. Gross loans increased $92.0 million, or 12.6%, to $819.7
million at June 30, 2016, compared to $727.7 million at June 30, 2015.
Year-over-year net loan growth, from June 30, 2015 to June 30, 2016, was
$90.5 million, or 12.6%. The Bank’s investment portfolio comprised of
held-to-maturity, available-for-sale, and restricted securities,
increased $10.7 million, or 9.8%, to $95.5 million at June 30, 2016,
compared to $87.0 million at June 30, 2015. As of June 30, 2016, the
Bank held $46.7 million of its investment portfolio as held-to-maturity,
and $42.1 million as available-for-sale. The Bank had $1.0 million in
other real estate owned as of June 30, 2015, and no other real estate
owned as of June 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 June 30, 2016, the estimated fair
value was $18.2 million.
Total deposits were $762.3 million at June 30, 2016, representing an
increase of $94.3 million, or 14.1%, compared to $668.0 million at June
30, 2015. Total borrowings, consisting of Federal Home Loan Bank
advances and customer repurchase agreements, were $95.4 million at June
30, 2016, an increase of $16.7 million, or 21.2%, compared to $78.7
million at June 30, 2015.
QwickRate certificates of deposit decreased by $2.5 million from $24.1
at June 30, 2015 to $21.6 million at June 30, 2016. CDARs increased $4.0
million from $65.5 million at June 30, 2015 to $69.5 million at June 30,
2016. Brokered certificates of deposit increased by $5.6 million from
$21.3 million at June 30, 2015 to $26.9 million at June 30, 2016.
Year-over-year Federal Home Loan Bank advances increased by $16.0
million, or 25.4%. Core customer funding sources increased by $91.9
million, or 14.4%, from $638.3 million at June 30, 2015 to $730.2
million at June 30, 2016.
Total shareholders’ equity was $112.8 million at June 30, 2016, an
increase of $8.6 million, or 8.2%, compared to $104.2 million at June
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 9,980,240 at June
30, 2015 to 10,031,349 at June 30, 2016.
Income Statement Review
Net interest income
Net interest income, the Bank’s primary source of revenue, was $8.8
million for the three months ended June 30, 2016, up 4.9% from $8.4
million for the three months ended June 30, 2015. The net interest
margin was 3.84% during the second quarter of 2016, compared to 4.09%
during the second 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 4.50% during the second quarter of
2016 from 4.71% during the second quarter of 2015, which is
substantially the result of a 22 basis point year-over-year decline in
loan yields and a 6 basis point year-over-year decline in securities
yields. Loan yields quarter-over-quarter declined 3 basis points from
4.94% to 4.91% and securities yields were unchanged at 2.00%, from March
31, 2016 to June 30, 2016.
For the six months ended June 30, 2016, net interest income was $17.4
million, up 6.5% from $16.4 million for the six months ended June 30,
2015. The net interest margin was 3.82% during the first six months of
2016, compared to 4.13% during the first six 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 4.48% during the
first six months of 2016 from 4.74% during the first six months of 2015,
which is substantially the result of a 23 basis point year-to-year
decline in loan yields and an 8 basis point year-over-year decline in
securities yields.
Despite the decline in the net interest margin over the past year, net
interest income increased by 6.5% during the first six months of 2016,
compared to the first six months of 2015, resulting primarily from a
$119.6 million, or 15.0%, increase in average earning assets during the
first six months of 2016, compared to the first six months of 2015.
Provision for loan losses
The Bank recognized a provision for loan losses of $240 thousand during
the second quarter of 2016, compared to a provision of $371 thousand
during the second quarter of 2015. The Bank reported no loan charge-offs
during the second quarter of 2016 and $279 thousand in net loan
charge-offs during the second quarter of 2015.
During the first six months of 2016, the Bank recognized a provision for
loan losses of $3.0 million, compared to a provision of $582 thousand
during the first six months of 2015. The Bank reported net loan
charge-offs of $1.9 million during the first six months of 2016,
compared to net loan charge-offs of $279 thousand during the first six
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.
Noninterest income
The Bank’s primary source of noninterest income is 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, 2016, the Bank reported total noninterest income of $275
thousand, compared to $128 thousand during the second quarter of 2015.
For the six months ended June 30, 2016, the Bank reported total
noninterest income of $470 thousand, compared to $268 thousand during
the first six months of 2015, an increase of 75.4%. The year-over-year
increase for both the three and six month periods ended June 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 9.5%, to
$3.1 million, during the second quarter of 2016 compared to $2.8 million
during the second quarter of 2015. All other operating expenses
increased by $223 thousand, or 11.8%, to $2.1 million, during the second
quarter of 2016, compared to $1.9 million during the second quarter of
2015.
During the first six months of 2016, salary and employee benefits
expense increased by 7.6%, to $6.1 million, compared to $5.7 million
during the first six months of 2015. All other operating expenses
increased by 17.9%, or $656 thousand, to $4.3 million, during the first
six months of 2016, compared to $3.7 million during the first six months
of 2015.
The increase in other operating expense was associated to higher FDIC
insurance related to growth, 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 June 30, 2016, non-performing assets were 0.34% of total assets,
up from 0.21% at June 30, 2015. The Bank’s allowance for loan losses
covered non-performing loans by 2.5 times as of June 30, 2016, compared
to 9.1 times as of June 30, 2015. The increase in non-performing assets
is related to the reclassification of $2.0 million of residential real
estate investment loans to non-accrual status during the fourth quarter
of 2015. The loans are to one customer and are secured by residential
real estate properties in the process of sale. The estimated impairment
on the loans has been fully reserved as of June 30, 2016 and we do not
anticipate any further losses related to these loans.
As of June 30, 2016, there were $2.1 million in loans 30-89 days past
due and still accruing interest. This $2.1 million loan was renewed in
July 2016 as a normal renewal for a performing credit. As of June 30,
2015 there were no loans 30-89 days past due and still accruing interest.
Troubled debt restructurings were $514 thousand at June 30, 2016, a
decrease of $1.3 million, or 71.2%, from $1.8 million as of June 30,
2015. All troubled debt restructurings were performing in accordance
with modified terms as of June 30, 2016. The Bank had $1.0 million in
other real estate owned as of June 30, 2015, and no other real estate
owned as of June 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 |
| (Dollar amounts in thousands, except per share data) |
| | | | | | | | | |
|
| | | | | | | | % Change |
| | June 30, | | December 31, | | June 30, | | Last Three | | Year Over |
| | 2016 | | 2015 | | 2015 | | Months | | Year |
| Assets | | (Unaudited) | | | | (Unaudited) | | | | |
| | | | | | | | | |
|
|
Cash and due from banks
| |
$
|
6,830
| | |
$
|
8,217
| | |
$
|
7,061
| | |
-16.9
|
%
| |
-3.3
|
%
|
|
Interest-bearing deposits in banks
| | |
30,593
| | | |
46,738
| | | |
28,031
| | |
-34.5
|
%
| |
9.1
|
%
|
|
Securities available-for-sale, at fair value
| | |
42,112
| | | |
32,145
| | | |
32,729
| | |
31.0
|
%
| |
28.7
|
%
|
Securities held-to-maturity, fair value of $47,760 at 6/30/2016,
$46,780 at 12/31/2015 and $48,664 at 6/30/2015 | | |
46,706
| | | |
46,479
| | | |
48,385
| | |
0.5
|
%
| |
-3.5
|
%
|
|
Restricted securities, at cost
| | |
6,695
| | | |
6,210
| | | |
5,866
| | |
7.8
|
%
| |
14.1
|
%
|
Loans, net of allowance for loan losses of $8,170 at 6/30/2016;
$7,130 at 12/31/2015 and $6,809 at 6/30/2015 | | |
810,068
| | | |
774,633
| | | |
719,583
| | |
4.6
|
%
| |
12.6
|
%
|
|
Bank premises and equipment, net
| | |
2,641
| | | |
2,690
| | | |
2,885
| | |
-1.8
|
%
| |
-8.5
|
%
|
|
Accrued interest receivable
| | |
2,341
| | | |
2,318
| | | |
2,254
| | |
1.0
|
%
| |
3.9
|
%
|
|
Bank owned life insurance
| | |
18,214
| | | |
- -
| | | |
- -
| | |
n/a
| | |
n/a
| |
|
Other real estate owned
| | |
- -
| | | |
- -
| | | |
1,008
| | |
n/a
| | |
n/a
| |
|
Other assets
| |
|
9,365
|
| |
|
9,190
|
| |
|
7,970
|
| |
1.9
|
%
| |
17.5
|
%
|
| | | | | | | | | |
|
|
Total assets
| |
$
|
975,565
|
| |
$
|
928,620
|
| |
$
|
855,772
|
| |
5.1
|
%
| |
14.0
|
%
|
| | | | | | | | | |
|
| Liabilities and Shareholders' Equity | | | | | | | | | | |
| | | | | | | | | |
|
| Liabilities | | | | | | | | | | |
|
Deposits:
| | | | | | | | | | |
|
Non-interest bearing demand deposits
| |
$
|
144,377
| | |
$
|
136,361
| | |
$
|
117,432
| | |
5.9
|
%
| |
22.9
|
%
|
|
Interest bearing demand deposits
| | |
239,479
| | | |
235,313
| | | |
214,680
| | |
1.8
|
%
| |
11.6
|
%
|
|
Savings deposits
| | |
7,659
| | | |
17,154
| | | |
6,140
| | |
-55.4
|
%
| |
24.7
|
%
|
|
Time deposits
| |
|
370,817
|
| |
|
342,025
|
| |
|
329,763
|
| |
8.4
|
%
| |
12.4
|
%
|
|
Total deposits
| | |
762,332
| | | |
730,853
| | | |
668,015
| | |
4.3
|
%
| |
14.1
|
%
|
|
Repurchase agreements
| | |
16,355
| | | |
11,972
| | | |
15,683
| | |
36.6
|
%
| |
4.3
|
%
|
| Federal Home Loan Bank advances
| | |
79,000
| | | |
71,000
| | | |
63,000
| | |
11.3
|
%
| |
25.4
|
%
|
|
Accrued interest payable
| | |
158
| | | |
109
| | | |
100
| | |
45.0
|
%
| |
58.0
|
%
|
|
Other liabilities
| |
|
4,947
|
| |
|
5,384
|
| |
|
4,758
|
| |
-8.1
|
%
| |
4.0
|
%
|
|
Total liabilities
| |
|
862,792
|
| |
|
819,318
|
| |
|
751,556
|
| |
5.3
|
%
| |
14.8
|
%
|
| | | | | | | | | |
|
| 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, 10,031,349 shares at
6/30/2016, 10,016,574 at 12/31/2015, and 9,980,240 at 6/30/2015 | | |
50,157
| | | |
50,083
| | | |
49,901
| | |
0.1
|
%
| |
0.5
|
%
|
|
Additional paid-in capital
| | |
31,538
| | | |
31,313
| | | |
30,938
| | |
0.7
|
%
| |
1.9
|
%
|
|
Retained earnings
| | |
31,139
| | | |
28,153
| | | |
23,594
| | |
10.6
|
%
| |
32.0
|
%
|
|
Accumulated other comprehensive loss
| |
|
(61
|
)
| |
|
(247
|
)
| |
|
(217
|
)
| |
75.3
|
%
| |
71.9
|
%
|
| | | | | | | | | |
|
|
Total shareholders' equity
| |
|
112,773
|
| |
|
109,302
|
| |
|
104,216
|
| |
3.2
|
%
| |
8.2
|
%
|
| | | | | | | | | |
|
|
Total liabilities and shareholders' equity
| |
$
|
975,565
|
| |
$
|
928,620
|
| |
$
|
855,772
|
| |
5.1
|
%
| |
14.0
|
%
|
| | | | | | | | | | | | | | | | | |
|
|
| |
| |
| |
| |
| |
| |
| John Marshall Bank |
| Statements of Income |
| | | | | | | | | | | |
|
| (Dollar amounts in thousands, except per share data) |
| | | | | | | | | | | |
|
| | Three Months Ended | | | | Six Months Ended | | |
| | June 30, | | | | June 30, | | |
| | 2016 | | 2015 | | % Change | | 2016 | | 2015 | | % Change |
| | (Unaudited) | | (Unaudited) | | | | (Unaudited) | | (Unaudited) | | |
| Interest and Dividend Income | | | | | | | | | | | | |
|
Interest and fees on loans
| |
$
|
9,835
| |
$
|
9,201
| |
6.9
|
%
| |
$
|
19,494
| |
$
|
17,956
| |
8.6
|
%
|
|
Interest on investment securities, taxable
| | |
326
| | |
332
| |
-1.8
|
%
| | |
648
| | |
627
| |
3.3
|
%
|
|
Interest on investment securities, tax-exempt
| | |
42
| | |
26
| |
61.5
|
%
| | |
75
| | |
52
| |
43.4
|
%
|
|
Dividends
| | |
85
| | |
87
| |
-2.3
|
%
| | |
164
| | |
142
| |
15.7
|
%
|
|
Interest on deposits in banks
| |
|
29
| |
|
11
| |
163.6
|
%
| |
|
82
| |
|
20
| |
314.8
|
%
|
|
Total interest and dividend income
| |
|
10,317
| |
|
9,657
| |
6.8
|
%
| |
|
20,463
| |
|
18,797
| |
8.9
|
%
|
| | | | | | | | | | | |
|
| Interest Expense | | | | | | | | | | | | |
|
Deposits
| | |
1,326
| | |
1,109
| |
19.6
|
%
| | |
2,644
| | |
2,124
| |
24.5
|
%
|
| Federal Home Loan Bank advances
| | |
174
| | |
141
| |
23.3
|
%
| | |
342
| | |
258
| |
32.3
|
%
|
|
Other short-term borrowings
| |
|
16
| |
|
18
| |
-11.1
|
%
| |
|
31
| |
|
32
| |
-3.7
|
%
|
|
Total interest expense
| |
|
1,516
| |
|
1,268
| |
19.6
|
%
| |
|
3,017
| |
|
2,414
| |
25.0
|
%
|
| | | | | | | | | | | |
|
|
Net interest income
| | |
8,801
| | |
8,389
| |
4.9
|
%
| | |
17,446
| | |
16,383
| |
6.5
|
%
|
| | | | | | | | | | | |
|
| Provision for loan losses | |
|
240
| |
|
371
| |
-35.3
|
%
| |
|
2,975
| |
|
582
| |
411.2
|
%
|
| | | | | | | | | | | |
|
|
Net interest income after provision for loan losses
| |
|
8,561
| |
|
8,018
| |
6.8
|
%
| |
|
14,471
| |
|
15,801
| |
-8.4
|
%
|
| | | | | | | | | | | |
|
| Noninterest Income | | | | | | | | | | | | |
|
Service charges on deposit accounts
| | |
98
| | |
114
| |
-14.0
|
%
| | |
220
| | |
232
| |
-5.2
|
%
|
|
Bank owned life insurance income
| | |
161
| | |
- -
| |
n/a
| | | |
215
| | |
- -
| |
n/a
| |
|
Other service charges and fees
| |
|
16
| |
|
14
| |
14.3
|
%
| |
|
35
| |
|
36
| |
-2.8
|
%
|
|
Total noninterest income
| |
|
275
| |
|
128
| |
114.8
|
%
| |
|
470
| |
|
268
| |
75.4
|
%
|
| | | | | | | | | | | |
|
| Noninterest Expenses | | | | | | | | | | | | |
|
Salaries and employee benefits
| | |
3,088
| | |
2,819
| |
9.5
|
%
| | |
6,132
| | |
5,699
| |
7.6
|
%
|
|
Occupancy expense of premises
| | |
413
| | |
453
| |
-8.8
|
%
| | |
832
| | |
893
| |
-6.8
|
%
|
|
Furniture and equipment expenses
| | |
309
| | |
261
| |
18.4
|
%
| | |
641
| | |
519
| |
23.5
|
%
|
|
Other operating expenses
| |
|
1,386
| |
|
1,171
| |
18.4
|
%
| |
|
2,850
| |
|
2,255
| |
26.4
|
%
|
|
Total noninterest expenses
| |
|
5,196
| |
|
4,704
| |
10.5
|
%
| |
|
10,455
| |
|
9,366
| |
11.6
|
%
|
| | | | | | | | | | | |
|
|
Income before income taxes
| | |
3,640
| | |
3,442
| |
5.7
|
%
| | |
4,486
| | |
6,703
| |
-33.1
|
%
|
| | | | | | | | | | | |
|
| Income tax expense | |
|
1,214
| |
|
1,241
| |
-2.2
|
%
| |
|
1,500
| |
|
2,395
| |
-37.4
|
%
|
| | | | | | | | | | | |
|
|
Net income
| |
$
|
2,426
| |
$
|
2,201
| |
10.2
|
%
| |
$
|
2,986
| |
$
|
4,308
| |
-30.7
|
%
|
| | | | | | | | | | | |
|
| Earnings Per Share | | | | | | | | | | | | |
|
Basic
| |
$
|
0.24
| |
$
|
0.22
| |
8.8
|
%
| |
$
|
0.30
| |
$
|
0.43
| |
-30.5
|
%
|
|
Diluted
| |
$
|
0.23
| |
$
|
0.21
| |
9.5
|
%
| |
$
|
0.28
| |
$
|
0.41
| |
-32.0
|
%
|
| | | | | | | | | | | | | | | | | |
|
|
|
| John Marshall Bank |
|
| |
| |
| |
| |
| |
| |
| |
| |
| Loan, Deposit and Borrowing Detail (Unaudited) |
| (Dollar amounts in thousands) |
| | | | | | | | | | | | | | | |
|
| | June 30, 2016 | | December 31, 2015 | | June 30, 2015 | | Percentage Change |
| Loans | | $ Amount | | % of Total | | $ Amount | | % of Total | | $ Amount | | % of Total | | Last 3 Mos | | Last 12 Mos |
|
Mortgage loans on real estate
| | | | | | | | | | | | | | | | |
|
Commercial
| |
$
|
475,702
| | |
58.0
|
%
| |
$
|
441,309
| | |
56.3
|
%
| |
$
|
401,665
| | |
55.2
|
%
| |
7.8
|
%
| |
18.4
|
%
|
|
Construction and land development
| | |
158,798
| | |
19.4
|
%
| | |
150,786
| | |
19.3
|
%
| | |
152,313
| | |
20.9
|
%
| |
5.3
|
%
| |
4.3
|
%
|
|
Residential
| |
|
99,051
|
| |
12.1
|
%
| |
|
95,496
|
| |
12.2
|
%
| |
|
88,254
|
| |
12.1
|
%
| |
3.7
|
%
| |
12.2
|
%
|
|
Total mortgage loans on real estate
| |
$
|
733,551
| | |
89.5
|
%
| |
$
|
687,591
| | |
87.8
|
%
| |
$
|
642,232
| | |
88.3
|
%
| |
6.7
|
%
| |
14.2
|
%
|
|
Commercial loans
| | |
81,861
| | |
10.0
|
%
| | |
94,371
| | |
12.0
|
%
| | |
84,522
| | |
11.6
|
%
| |
-13.3
|
%
| |
-3.1
|
%
|
|
Consumer loans
| |
|
4,309
|
| |
0.5
|
%
| |
|
1,203
|
| |
0.2
|
%
| |
|
960
|
| |
0.1
|
%
| |
258.3
|
%
| |
348.7
|
%
|
|
Total loans
| |
$
|
819,721
| | |
100.0
|
%
| |
$
|
783,165
| | |
100.0
|
%
| |
$
|
727,714
| | |
100.0
|
%
| |
4.7
|
%
| |
12.6
|
%
|
|
Less: Allowance for loan losses
| | |
(8,170
|
)
| | | | |
(7,130
|
)
| | | | |
(6,809
|
)
| | | | | | |
|
Net deferred loan fees
| |
|
(1,483
|
)
| | | |
|
(1,402
|
)
| | | |
|
(1,322
|
)
| | | | | | |
|
Net loans
| |
$
|
810,068
|
| | | |
$
|
774,633
|
| | | |
$
|
719,583
|
| | | | | | |
| | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | |
|
| | June 30, 2016 | | December 31, 2015 | | June 30, 2015 | | Percentage Change |
| Deposits | | $ Amount | | % of Total | | $ Amount | | % of Total | | $ Amount | | % of Total | | Last 3 Mos | | Last 12 Mos |
|
Noninterest-bearing demand deposits
| |
$
|
144,377
| | |
19.0
|
%
| |
$
|
136,361
| | |
18.7
|
%
| |
$
|
117,432
| | |
17.6
|
%
| |
5.9
|
%
| |
22.9
|
%
|
|
Interest-bearing demand deposits:
| | | | | | | | | | | | | | | | |
|
NOW accounts
| | |
14,041
| | |
1.8
|
%
| | |
23,496
| | |
3.2
|
%
| | |
11,855
| | |
1.8
|
%
| |
-40.2
|
%
| |
18.4
|
%
|
|
Money market accounts
| | |
222,487
| | |
29.2
|
%
| | |
211,817
| | |
29.0
|
%
| | |
202,825
| | |
30.3
|
%
| |
5.0
|
%
| |
9.7
|
%
|
|
Savings accounts
| | |
7,659
| | |
1.0
|
%
| | |
17,154
| | |
2.3
|
%
| | |
6,140
| | |
0.9
|
%
| |
-55.4
|
%
| |
24.7
|
%
|
|
Certificates of deposit
| | | | | | | | | | | | | | | | |
| $250,000 or more
| | |
154,476
| | |
20.3
|
%
| | |
137,381
| | |
18.8
|
%
| | |
131,568
| | |
19.7
|
%
| |
12.4
|
%
| |
17.4
|
%
|
|
Less than $250,000 | | |
101,269
| | |
13.3
|
%
| | |
94,164
| | |
12.9
|
%
| | |
87,249
| | |
13.1
|
%
| |
7.5
|
%
| |
16.1
|
%
|
|
QwickRate® Certificates of deposit
| | |
21,602
| | |
2.8
|
%
| | |
25,018
| | |
3.4
|
%
| | |
24,138
| | |
3.6
|
%
| |
-13.7
|
%
| |
-10.5
|
%
|
|
CDARS®
| | |
69,518
| | |
9.1
|
%
| | |
62,943
| | |
8.6
|
%
| | |
65,558
| | |
9.8
|
%
| |
10.4
|
%
| |
6.0
|
%
|
|
Brokered deposits
| |
|
26,903
|
| |
3.5
|
%
| |
|
22,519
|
| |
3.1
|
%
| |
|
21,250
|
| |
3.2
|
%
| |
19.5
|
%
| |
26.6
|
%
|
|
Total deposits
| |
$
|
762,332
|
| |
100.0
|
%
| |
$
|
730,853
|
| |
100.0
|
%
| |
$
|
668,015
|
| |
100.0
|
%
| |
4.3
|
%
| |
14.1
|
%
|
| | | | | | | | | | | | | | | |
|
| Borrowings | | | | | | | | | | | | | | | | |
|
Customer repurchase agreements
| |
$
|
16,355
| | |
17.2
|
%
| |
$
|
11,972
| | |
14.4
|
%
| |
$
|
15,683
| | |
19.9
|
%
| |
36.6
|
%
| |
4.3
|
%
|
| Federal Home Loan Bank advances
| |
|
79,000
|
| |
82.8
|
%
| |
|
71,000
|
| |
85.6
|
%
| |
|
63,000
|
| |
80.1
|
%
| |
11.3
|
%
| |
25.4
|
%
|
|
Total borrowings
| |
$
|
95,355
|
| |
100.0
|
%
| |
$
|
82,972
|
| |
100.0
|
%
| |
$
|
78,683
|
| |
100.0
|
%
| |
14.9
|
%
| |
21.2
|
%
|
| | | | | | | | | | | | | | | |
|
|
Total deposits and borrowings
| |
$
|
857,687
|
| | | |
$
|
813,825
|
| | | |
$
|
746,698
|
| | | |
5.4
|
%
| |
14.9
|
%
|
| | | | | | | | | | | | | | | |
|
|
Core customer funding sources (1)
| |
$
|
730,182
| | |
85.1
|
%
| |
$
|
695,288
| | |
85.4
|
%
| |
$
|
638,310
| | |
85.5
|
%
| |
5.0
|
%
| |
14.4
|
%
|
|
Wholesale funding sources (2)
| |
|
127,505
|
| |
14.9
|
%
| |
|
118,537
|
| |
14.6
|
%
| |
|
108,388
|
| |
14.5
|
%
| |
7.6
|
%
| |
17.6
|
%
|
|
Total funding sources
| |
$
|
857,687
|
| |
100.0
|
%
| |
$
|
813,825
|
| |
100.0
|
%
| |
$
|
746,698
|
| |
100.0
|
%
| |
5.4
|
%
| |
14.9
|
%
|
| | | | | | | | | | | | | | | |
|
|
(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
and Federal Home Loan Bank advances
|
| |
|
|
|
| John Marshall Bank |
| Average Balance Sheets, Interest and Rates (unaudited) |
| (Dollar amounts in thousands) |
|
| |
| |
| |
| |
| |
| |
| | Three Months Ended June 30, 2016 | | Three Months Ended June 30, 2015 |
| | | | Interest | | Average | | | | Interest | | Average |
| | Average | | Income- | | Yields | | Average | | Income- | | Yields |
| | Balance | | Expense | | /Rates | | Balance | | Expense | | /Rates |
| Assets | | | | | | | | | | | | |
|
Securities
| |
$
|
90,969
| |
$
|
453
| |
2.00
|
%
| |
$
|
86,793
| |
$
|
445
| |
2.06
|
%
|
|
Loans, net of unearned income
| | |
805,377
| | |
9,835
| |
4.91
|
%
| | |
719,586
| | |
9,201
| |
5.13
|
%
|
|
Interest-bearing deposits in other banks
| |
|
25,502
| |
|
29
| |
0.46
|
%
| |
|
16,565
| |
|
11
| |
0.27
|
%
|
| Total interest-earning assets | |
$
|
921,848
| |
$
|
10,317
| |
4.50
|
%
| |
$
|
822,944
| |
$
|
9,657
| |
4.71
|
%
|
|
Other assets
| |
|
29,943
| | | | | |
|
17,193
| | | | |
| Total assets | |
$
|
951,791
| | | | | |
$
|
840,137
| | | | |
| Liabilities & Shareholders' equity | | | | | | | | | | | | |
|
Interest-bearing deposits
| | | | | | | | | | | | |
|
NOW accounts
| |
$
|
13,866
| |
$
|
19
| |
0.55
|
%
| |
$
|
13,823
| |
$
|
9
| |
0.27
|
%
|
|
Money market accounts
| | |
218,314
| | |
291
| |
0.54
|
%
| | |
204,334
| | |
272
| |
0.53
|
%
|
|
Savings accounts
| | |
10,707
| | |
11
| |
0.41
|
%
| | |
6,308
| | |
5
| |
0.30
|
%
|
|
Time deposits
| |
|
362,303
| |
|
1,005
| |
1.12
|
%
| |
|
309,540
| |
|
823
| |
1.07
|
%
|
|
Total interest-bearing deposits
| |
$
|
605,190
| |
$
|
1,326
| |
0.88
|
%
| |
$
|
534,005
| |
$
|
1,109
| |
0.83
|
%
|
Securities sold under agreement to repurchase and federal funds
purchased
| |
$
|
15,437
| |
$
|
16
| |
0.42
|
%
| |
$
|
16,718
| |
$
|
18
| |
0.44
|
%
|
|
Other borrowed funds
| |
|
68,187
| |
|
174
| |
1.03
|
%
| |
|
59,516
| |
|
141
| |
0.95
|
%
|
| Total interest-bearing liabilities | |
$
|
688,814
| |
$
|
1,516
| |
0.89
|
%
| |
$
|
610,239
| |
$
|
1,268
| |
0.83
|
%
|
|
Demand deposits and other liabilities
| |
|
150,891
| | | | | |
|
126,261
| | | | |
| Total liabilities | |
$
|
839,705
| | | | | |
$
|
736,500
| | | | |
|
Shareholders' equity
| |
|
112,086
| | | | | |
|
103,637
| | | | |
| Total liabilities and shareholders' equity | |
$
|
951,791
| | | | | |
$
|
840,137
| | | | |
|
Interest rate spread
| | | | | |
3.61
|
%
| | | | | |
3.88
|
%
|
| Net interest income and margin | | | |
$
|
8,801
| |
3.84
|
%
| | | |
$
|
8,389
| |
4.09
|
%
|
| | | | | | | | | | | |
|
| | | | | | | | | | | |
|
| | Six Months Ended June 30, 2016 | | Six Months Ended June 30, 2015 |
| | | | Interest | | Average | | | | Interest | | Average |
| | Average | | Income- | | Yields | | Average | | Income- | | Yields |
| | Balance | | Expense | | /Rates | | Balance | | Expense | | /Rates |
| Assets | | | | | | | | | | | | |
|
Securities
| |
$
|
89,099
| |
$
|
887
| |
2.00
|
%
| |
$
|
79,811
| |
$
|
821
| |
2.08
|
%
|
|
Loans, net of unearned income
| | |
796,052
| | |
19,494
| |
4.92
|
%
| | |
702,824
| | |
17,956
| |
5.15
|
%
|
|
Interest-bearing deposits in other banks
| |
|
33,421
| |
|
82
| |
0.49
|
%
| |
|
16,345
| |
|
20
| |
0.24
|
%
|
| Total interest-earning assets | |
$
|
918,572
| |
$
|
20,463
| |
4.48
|
%
| |
$
|
798,980
| |
$
|
18,797
| |
4.74
|
%
|
|
Other assets
| |
|
24,581
| | | | | |
|
16,892
| | | | |
| Total assets | |
$
|
943,153
| | | | | |
$
|
815,872
| | | | |
| Liabilities & Shareholders' equity | | | | | | | | | | | | |
|
Interest-bearing deposits
| | | | | | | | | | | | |
|
NOW accounts
| |
$
|
17,584
| |
$
|
35
| |
0.40
|
%
| |
$
|
13,844
| |
$
|
18
| |
0.27
|
%
|
|
Money market accounts
| | |
214,857
| | |
573
| |
0.54
|
%
| | |
198,396
| | |
523
| |
0.53
|
%
|
|
Savings accounts
| | |
12,811
| | |
31
| |
0.49
|
%
| | |
6,815
| | |
11
| |
0.32
|
%
|
|
Time deposits
| |
|
359,726
| |
|
2,005
| |
1.12
|
%
| |
|
300,982
| |
|
1,572
| |
1.05
|
%
|
|
Total interest-bearing deposits
| |
$
|
604,978
| |
$
|
2,644
| |
0.88
|
%
| |
$
|
520,037
| |
$
|
2,124
| |
0.82
|
%
|
Securities sold under agreement to repurchase and federal funds
purchased
| |
$
|
14,695
| |
$
|
31
| |
0.42
|
%
| |
$
|
15,009
| |
$
|
32
| |
0.43
|
%
|
|
Other borrowed funds
| |
|
67,896
| |
|
342
| |
1.01
|
%
| |
|
54,144
| |
|
258
| |
0.96
|
%
|
| Total interest-bearing liabilities | |
$
|
687,569
| |
$
|
3,017
| |
0.88
|
%
| |
$
|
589,190
| |
$
|
2,414
| |
0.83
|
%
|
|
Demand deposits and other liabilities
| |
|
143,978
| | | | | |
|
124,181
| | | | |
| Total liabilities | |
$
|
831,547
| | | | | |
$
|
713,371
| | | | |
|
Shareholders' equity
| |
|
111,606
| | | | | |
|
102,501
| | | | |
| Total liabilities and shareholders' equity | |
$
|
943,153
| | | | | |
$
|
815,872
| | | | |
|
Interest rate spread
| | | | | |
3.60
|
%
| | | | | |
3.91
|
%
|
| Net interest income and margin | | | |
$
|
17,446
| |
3.82
|
%
| | | |
$
|
16,383
| |
4.13
|
%
|
| | | | | | | | | | | |
|
|
|
| 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 Six Months Ended |
| | June 30 | | June 30 |
| | 2016 | | 2015 | | 2016 | | 2015 |
| Per share Data and Shares Outstanding | | | | | | | | |
|
Earnings per share - basic
| |
$
|
0.24
| | |
$
|
0.22
| | |
$
|
0.30
| | |
$
|
0.43
| |
|
Earnings per share - diluted
| |
$
|
0.23
| | |
$
|
0.21
| | |
$
|
0.28
| | |
$
|
0.41
| |
|
Tangible book value per share
| |
$
|
11.24
| | |
$
|
10.44
| | |
$
|
11.24
| | |
$
|
10.44
| |
|
Weighted average common shares (basic)
| | |
10,031,011
| | | |
9,980,009
| | | |
10,028,888
| | | |
9,977,586
| |
|
Weighted average common shares (diluted)
| | |
10,538,961
| | | |
10,479,582
| | | |
10,536,838
| | | |
10,463,907
| |
|
Common shares outstanding at end of period
| | |
10,031,349
| | | |
9,980,240
| | | |
10,031,349
| | | |
9,980,240
| |
| | | | | | | |
|
| Performance Ratios | | | | | | | | |
|
Return on average assets (annualized)
| | |
1.03
|
%
| | |
1.05
|
%
| | |
0.64
|
%
| | |
1.06
|
%
|
|
Return on average equity (annualized)
| | |
8.71
|
%
| | |
8.52
|
%
| | |
5.38
|
%
| | |
8.48
|
%
|
|
Yield on earning assets (annualized)
| | |
4.50
|
%
| | |
4.71
|
%
| | |
4.48
|
%
| | |
4.74
|
%
|
|
Cost of interest bearing liabilities (annualized)
| | |
0.89
|
%
| | |
0.83
|
%
| | |
0.88
|
%
| | |
0.83
|
%
|
|
Net interest spread
| | |
3.61
|
%
| | |
3.88
|
%
| | |
3.60
|
%
| | |
3.91
|
%
|
|
Net interest margin
| | |
3.84
|
%
| | |
4.09
|
%
| | |
3.82
|
%
| | |
4.13
|
%
|
|
Noninterest income as a percentage of average assets (annualized)
| | |
0.12
|
%
| | |
0.06
|
%
| | |
0.10
|
%
| | |
0.07
|
%
|
|
Noninterest expense to average assets (annualized)
| | |
2.20
|
%
| | |
2.25
|
%
| | |
2.23
|
%
| | |
2.31
|
%
|
|
Efficiency ratio
| | |
57.2
|
%
| | |
55.2
|
%
| | |
58.4
|
%
| | |
56.2
|
%
|
| | | | | | | |
|
| Asset Quality | | | | | | | | |
|
Loans 30-89 days past due and accruing interest
| |
$
|
2,101
| | |
$
|
-
| | |
$
|
2,101
| | |
$
|
-
| |
|
Loans Past Due 90 days or more and accruing int
| |
$
|
-
| | |
$
|
-
| | |
$
|
-
| | |
$
|
-
| |
|
Non-accrual loans
| |
$
|
3,325
| | |
$
|
750
| | |
$
|
3,325
| | |
$
|
750
| |
|
Other real estate owned
| |
$
|
-
| | |
$
|
1,008
| | |
$
|
-
| | |
$
|
1,008
| |
|
Non-performing assets (1)
| |
$
|
3,325
| | |
$
|
1,758
| | |
$
|
3,325
| | |
$
|
1,758
| |
|
Non-performing assets to total assets
| | |
0.34
|
%
| | |
0.21
|
%
| | |
0.34
|
%
| | |
0.21
|
%
|
|
Allowance for loan losses to total loans
| | |
1.00
|
%
| | |
0.94
|
%
| | |
1.00
|
%
| | |
0.94
|
%
|
|
Allowance for loan losses to non-performing loans
| | |
2.5
| | | |
9.1
| | | |
2.5
| | | |
9.1
| |
|
Net loan charge-offs
| |
$
|
-
| | |
$
|
279
| | |
$
|
1,935
| | |
$
|
279
| |
|
Net charge-offs to average loans (annualized)
| | |
0.00
|
%
| | |
0.16
|
%
| | |
0.49
|
%
| | |
0.08
|
%
|
|
Troubled debt restructurings (total)
| |
$
|
514
| | |
$
|
1,787
| | |
$
|
514
| | |
$
|
1,787
| |
|
Performing in accordance with modified terms
| |
$
|
514
| | |
$
|
1,787
| | |
$
|
514
| | |
$
|
1,787
| |
|
Not performing in accordance with modified terms
| |
$
|
-
| | |
$
|
-
| | |
$
|
-
| | |
$
|
-
| |
| | | | | | | |
|
| Regulatory Capital Ratios | | | | | | | | |
|
Total risk-based capital ratio
| | |
12.7
|
%
| | |
13.5
|
%
| | |
12.7
|
%
| | |
13.5
|
%
|
|
Tier 1 risk-based capital ratio
| | |
11.8
|
%
| | |
12.6
|
%
| | |
11.8
|
%
| | |
12.6
|
%
|
|
Leverage ratio
| | |
11.9
|
%
| | |
12.1
|
%
| | |
11.9
|
%
| | |
12.1
|
%
|
|
Common equity tier 1 ratio
| | |
11.8
|
%
| | |
12.6
|
%
| | |
11.8
|
%
| | |
12.6
|
%
|
| | | | | | | |
|
| Other Information | | | | | | | | |
|
Effective income tax rate
| | |
33.4
|
%
| | |
36.0
|
%
| | |
33.4
|
%
| | |
35.7
|
%
|
|
Tangible equity / tangible assets
| | |
11.6
|
%
| | |
12.2
|
%
| | |
11.6
|
%
| | |
12.2
|
%
|
|
Average tangible equity / average tangible assets
| | |
11.8
|
%
| | |
12.3
|
%
| | |
11.8
|
%
| | |
12.6
|
%
|
|
Number of full time equivalent employees
| | |
108
| | | |
100
| | | |
108
| | | |
100
| |
|
# 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/20160801006142/en/
John Marshall Bank
John R. Maxwell, 703-584-0840
Source: John Marshall Bank