RESTON, Va.--(BUSINESS WIRE)--
John Marshall Bancorp, Inc. (OTCQB: JMSB) (the “Company”) reported net
income of $2.7 million for the three months ended June 30, 2017, an
increase of $278 thousand or 11.5%, as compared to net income of $2.4
million for the three months ended June 30, 2016. Net income per diluted
share was $0.25 per share during the three months ending June 30, 2017,
compared to $0.23 per diluted share during the same period in 2016.
The Company’s three month results produced an annualized return of 1.00%
on average assets and 8.74% on average equity, compared to 1.03% and
8.71%, respectively, for the same period a year ago. As of June 30,
2017, the Company’s tangible book value per share was $12.19, up 8.5%
compared to $11.24 as of June 30, 2016.
The Company reported net income of $5.2 million for the six months ended
June 30, 2017, an increase of $2.2 million compared to $3.0 million for
the six months ended June 30, 2016. In 2016, the lower earnings were
attributable to loan loss provisions of $3.0 million for first six
months of 2016, compared to $645 thousand for the first six months of
2017.
The Company’s capital ratios remain well above regulatory minimums for
well capitalized banks. As of June 30, 2017, the Company’s total
risk-based capital ratio was 12.3%, compared to 12.7% at June 30, 2016.
Balance Sheet Review
Total assets were $1.12 billion at June 30, 2017, $1.08 billion at
December 31, 2016 and $975.6 million at June 30, 2016. During the first
six months of 2017 assets increased $43.0 million, or 4.0%.
Year-over-year asset growth, from June 30, 2016 to June 30, 2017, was
$142.9 million, or 14.6%. Gross loans were $942.5 million at June 30,
2017, 896.0 million at December 31, 2016 and $819.7 million at June 30,
2016. During the first six months of 2017 gross loans increased $46.4
million, or 5.2%. Year-over-year gross loans increased $122.7 million,
or 15.0% year-over-year, from June 30, 2016 to June 30, 2017.
Year-over-year net loan growth was $121.8 million, or 15.0% from June
30, 2016 to June 30, 2017. The Company’s investment portfolio comprised
of held-to-maturity, available-for-sale, and restricted securities, was
$91.9 million at June 30, 2017, $100.3 million at December 31, 2016 and
$95.5 million at June 30, 2016. As of June 30, 2017, the Company held
$41.8 million of its investment portfolio as held-to-maturity, and $42.0
million as available-for-sale. At June 30, 2017, the estimated fair
value of bank owned life insurance was $18.8 million, compared to $18.5
million at December 31, 2016 and $18.2 million at June 30, 2016.
Total deposits were $878.8 million at June 30, 2017, $832.9 million at
December 31, 2016 and $762.3 million at June 30, 2016. . During the
first six months of 2017 total deposits increased $46.0 million, or
5.5%. Year-over-year deposit growth, from June 30, 2016 to June 30,
2017, was $116.5 million, or 15.3%. Total borrowings, consisting of
Federal Home Loan Bank advances and customer repurchase agreements, were
$109.7 million at June 30, 2017, $118.2 million at December 31, 2016 and
$95.4 million at June 30, 2016. During the first six months of 2017
borrowings decreased $8.5 million, or 7.2%. Year-over-year, from June
30, 2016 to June 30, 2017, total borrowings increased $14.4 million, or
15.1%.
QwickRate certificates of deposits were $22.4 million at June 30, 2017,
$22.8 million at December 31, 2016 and $21.6 million at June 30, 2016.
Year-over-year QwickRate certificates of deposits increased $832
thousand from June 30, 2016 to June 30, 2017. CDARs were $83.6 million
at June 30, 2017, $71.8 million at December 31, 2016 and $69.5 million
at June 30, 2016. Year-over-year CDARS increased $14.1 million. Brokered
deposits were $43.0 million at June 30, 2017, $46.9 million at December
31, 2016 and $26.9 million at June 30, 2016. Year-over-year, brokered
deposits increased $16.1 million from June 30, 2016 to June 30, 2017.
Customer repurchase agreements were $2.7 million at June 30, 2017, $14.2
million at December 31, 2016 and $16.4 million at June 30, 2016. During
the first quarter of 2017, the Company partnered with Promontory to
offer insured cash sweep products (“ICS”). As of June 30, 2017, the
Company had $60.9 million in ICS deposits. The declines in the customer
repurchase agreements were part of an initiative and were mostly moved
into ICS. Federal Home Loan Bank advances were $107.0 million at June
30, 2017, $104.0 million at December 31, 2016 and $79.0 million at June
30, 2016. Year-over-year Federal Home Loan Bank advances increased $28.0
million or 35.4%. Core customer funding was $816.1 million at June 30,
2017, $777.3 million at December 31, 2016 and $730.2 million at June 30,
2016. Year-over-year core customer funding sources increased by $85.9
million, or 11.8%, from June 30, 2016 to June 30, 2017.
Total shareholders’ equity was $124.8 million at June 30, 2017, $118.8
million at December 31, 2016 and $112.8 million at June 30, 2016. For
the first six months of 2017, shareholders’ equity increased $6.1
million, or 5.1%. Year-over-year shareholders’ equity increased of $12.1
million, or 10.7%. Of the year-over-year increase in shareholders’
equity, $10.5 million is related to net income retained during the past
twelve months. Total common shares outstanding increased from 10,031,349
at June 30, 2016 to 10,243,141, including 67,020 unvested shares, at
June 30, 2017.
Subsequently, the Company completed a private placement of $25.0 million
of fixed-to-floating subordinated notes on July 6, 2017. Unless redeemed
earlier, the notes will mature on July 15, 2027. The notes bear a fixed
rate of 5.75% for the first five years and will bear a floating rate
equal to three-month LIBOR plus 388 basis points thereafter. The notes
are intended to qualify as Tier 2 capital for the Company for regulatory
purposes.
Income Statement Review
Net interest income
Net interest income, the Company’s primary source of revenue, was $10.1
million for the three months ended June 30, 2017, up 14.2% from $8.8
million for the three months ended June 30, 2016. The net interest
margin was 3.82% during the second quarter of 2017, compared to 3.84%
during the second quarter of 2016. For the six months ended June 30,
2017, net interest income was $19.7 million, up 12.7% from $17.4 million
for the six months ended June 30, 2016. The net interest margin was
3.78% during the first six months of 2017, compared to 3.82% during the
first six months of 2016. Despite the Federal Reserve increasing rates
by 25 basis points in December 2016, March 2017 and June 2017, the
margin declined only 2 basis points year-over-year for the three months
ended June 30, 2017 and declined 4 basis points year-over-year for the
six months ended June 30, 2017. The decline is mostly related to the
higher cost of time deposits and other borrowed funds.
Notwithstanding the decline in the net interest margin over the past
year, net interest income increased by 12.7% during the first six months
of 2017, compared to the first six months of 2016, resulting primarily
from a $130.2 million, or 14.2%, increase in average earning assets
during the first six months of 2017, compared to the first six months of
2017.
Provision for loan losses
The Company recognized a provision for loan losses of $380 thousand
during the second quarter of 2017, compared to a provision of $240
thousand during the second quarter of 2016. The Company reported $8
thousand in net loan recoveries during the second quarter of 2017 and no
loan charge-offs during the second quarter of 2016.
During the first six months of 2017, the Company recognized a provision
for loan losses of $645 thousand, compared to a provision of $3.0
million during the first six months of 2016. The Company reported $14
thousand in net loan recoveries during the first six months of 2017,
compared to net loan charge-offs of $1.9 million during the first six
months of 2016.
Noninterest income
The Company’s noninterest income consists primarily of bank owned life
insurance income and service charges on deposit accounts. Loan fees are
included in interest income on the loan portfolio and not reported as
noninterest income.
For the three months ended June 30, 2017, the Company reported total
noninterest income of $310 thousand, compared to $275 thousand during
the second quarter of 2016. For the six months ended June 30, 2017, the
Company reported total noninterest income of $658 thousand, compared to
$470 thousand during the first six months of 2016, an increase of 40.0%.
The year-over-year increase for both the three and six month periods
ended June 30, 2017 was primarily attributable to gains on sales of
securities during the first and second quarters of 2017.
Noninterest expense
The largest component of the Company’s noninterest expense is employee
salaries and benefits. Salaries and benefits expense increased by 13.9%,
to $3.5 million, during the second quarter of 2017 compared to $3.1
million during the second quarter of 2016. All other operating expenses
increased by $231 thousand, or 11.0%, to $2.3 million during the second
quarter of 2017, compared to $2.1 million during the second quarter of
2016.
During the first six months of 2017, salaries and employee benefits
expense increased by 16.6%, to $7.2 million, compared to $6.1 million
during the first six months of 2016. All other operating expenses
increased by 7.2%, or $310 thousand, to $4.6 million, during the first
six months of 2017, compared to $4.3 million during the first six months
of 2016.
The increase in salaries and benefits is related to additional staff
needed to support the loan and deposit growth of the Company. The
increase in other operating expenses was mostly related to one-time
expenses related to the formation of the Holding Company in March 2017
as well as higher FDIC insurance and franchise tax related to growth.
Asset Quality Review
As of June 30, 2017, non-performing assets were 0.30% of total assets,
down from 0.34% at June 30, 2016. The Company’s allowance for loan
losses covered non-performing loans by 2.6 times as of June 30, 2017,
compared to 2.5 times as of June 30, 2016. In the first quarter of 2017,
eight commercial loans relating to one customer relationship totaling
$3.3 million were put on non-accrual. These loans are secured by real
estate and a specific reserve of $451 thousand was recorded as of June
30, 2017.
As of June 30, 2017, there were $108 thousand in loans 30-89 days past
due and still accruing interest As of June 30, 2016, there were $2.1
million in loans 30-89 days past due and still accruing interest.
Troubled debt restructurings were $501 thousand at June 30, 2017, a
decrease of 2.5% from $514 thousand as of June 30, 2016. All troubled
debt restructurings were performing in accordance with modified terms as
of June 30, 2017. The Company had no other real estate owned as of June
30, 2017 and 2016.
John Marshall Bancorp, Inc. is the bank holding company for John
Marshall Bank. John Marshall Bank is headquartered in Reston, Virginia
and has five full-service branches located in Reston, Leesburg,
Arlington, Alexandria and Rockville. The Bank also has a limited-service
commercial branch located in Washington, DC and a loan production office
located in Tysons Corner, VA. Further information on the Bank can be
obtained by visiting its website at www.johnmarshallbank.com.
This press release contains forward-looking statements within the
meaning of the Securities and Exchange Act of 1934, as amended,
including statements of goals, intentions, and expectations as to future
trends, plans, events or results of Company operations and policies and
regarding general economic conditions. In some cases, forward-looking
statements can be identified by use of words such as “may,” “will,”
“anticipates,” “believes,” “expects,” “plans,” “estimates,” “potential,”
“continue,” “should,” and similar words or phrases. These statements are
based upon current and anticipated economic conditions, nationally and
in the Company’s market, interest rates and interest rate policy,
competitive factors, and other conditions which by their nature, are not
susceptible to accurate forecast, and are subject to significant
uncertainty. Because of these uncertainties and the assumptions on which
this discussion and the forward-looking statements are based, actual
future operations and results may differ materially from those indicated
herein. Readers are cautioned against placing undue reliance on any such
forward-looking statements. The Company’s past results are not
necessarily indicative of future performance.
|
| |
| |
| |
| |
| |
| John Marshall Bancorp, Inc. |
| | | | | | | | | |
|
| Consolidated Balance Sheets |
| (In thousands) |
| | | | | | | | | |
|
| | | | | | | | % Change |
| | June 30, | | December 31, | | June 30, | | Last Six | | Year Over |
| |
| 2017 |
| |
| 2016 |
| |
| 2016 |
| | Months | | Year |
| Assets | | (Unaudited) | | | | (Unaudited) | | | | |
| | | | | | | | | |
|
|
Cash and due from banks
| |
$
|
9,998
| | |
$
|
4,898
| | |
$
|
6,830
| | |
104.1
|
%
| |
46.4
|
%
|
|
Federal funds sold
| | |
60
| | | |
60
| | | |
- -
| | |
0.0
|
%
| |
N/M
| |
|
Interest-bearing deposits in banks
| | |
49,390
| | | |
49,717
| | | |
30,593
| | |
-0.7
|
%
| |
61.4
|
%
|
|
Securities available-for-sale, at fair value
| | |
42,006
| | | |
48,312
| | | |
42,112
| | |
-13.1
|
%
| |
-0.3
|
%
|
Securities held-to-maturity, fair value of $42,096 at 6/30/17,
$44,067 at 12/31/16 and $47,760 at 6/30/16 | | |
41,791
| | | |
44,073
| | | |
46,706
| | |
-5.2
|
%
| |
-10.5
|
%
|
|
Restricted securities, at cost
| | |
8,071
| | | |
7,873
| | | |
6,695
| | |
2.5
|
%
| |
20.6
|
%
|
Loans, net of allowance for loan losses of $8,861 at 6/30/17;
$8,202 at 12/31/16 and $8,170 at 6/30/16 | | |
931,885
| | | |
886,220
| | | |
810,068
| | |
5.2
|
%
| |
15.0
|
%
|
|
Bank premises and equipment, net
| | |
2,760
| | | |
2,471
| | | |
2,641
| | |
11.7
|
%
| |
4.5
|
%
|
|
Accrued interest receivable
| | |
2,818
| | | |
2,988
| | | |
2,341
| | |
-5.7
|
%
| |
20.4
|
%
|
|
Bank owned life insurance
| | |
18,814
| | | |
18,540
| | | |
18,214
| | |
1.5
|
%
| |
3.3
|
%
|
|
Other assets
| |
|
10,824
|
| |
|
10,205
|
| |
|
9,365
|
| |
6.1
|
%
| |
15.6
|
%
|
| | | | | | | | | |
|
|
Total assets
| |
$
|
1,118,417
|
| |
$
|
1,075,357
|
| |
$
|
975,565
|
| |
4.0
|
%
| |
14.6
|
%
|
| | | | | | | | | |
|
| Liabilities and Shareholders' Equity | | | | | | | | | | |
| | | | | | | | | |
|
| Liabilities | | | | | | | | | | |
|
Deposits:
| | | | | | | | | | |
|
Non-interest bearing demand deposits
| |
$
|
167,920
| | |
$
|
195,065
| | |
$
|
144,377
| | |
-13.9
|
%
| |
16.3
|
%
|
|
Interest bearing demand deposits
| | |
267,585
| | | |
211,495
| | | |
239,479
| | |
26.5
|
%
| |
11.7
|
%
|
|
Savings deposits
| | |
7,436
| | | |
6,856
| | | |
7,659
| | |
8.5
|
%
| |
-2.9
|
%
|
|
Time deposits
| |
|
435,893
|
| |
|
419,449
|
| |
|
370,817
|
| |
3.9
|
%
| |
17.5
|
%
|
|
Total deposits
| | |
878,834
| | | |
832,865
| | | |
762,332
| | |
5.5
|
%
| |
15.3
|
%
|
|
Repurchase agreements
| | |
2,723
| | | |
14,206
| | | |
16,355
| | |
-80.8
|
%
| |
-83.4
|
%
|
| Federal Home Loan Bank advances
| | |
107,000
| | | |
104,000
| | | |
79,000
| | |
2.9
|
%
| |
35.4
|
%
|
|
Accrued interest payable
| | |
255
| | | |
220
| | | |
158
| | |
15.9
|
%
| |
61.4
|
%
|
|
Other liabilities
| |
|
4,760
|
| |
|
5,271
|
| |
|
4,947
|
| |
-9.7
|
%
| |
-3.8
|
%
|
|
Total liabilities
| |
|
993,572
|
| |
|
956,562
|
| |
|
862,792
|
| |
3.9
|
%
| |
15.2
|
%
|
| | | | | | | | | |
|
| Shareholders' Equity | | | | | | | | | | |
Preferred stock, par value $0.01 per share; authorized 1,000,000
shares; none issued
| | |
- -
| | | |
- -
| | | |
- -
| | |
- -
| | |
- -
| |
Common stock, nonvoting, par value $0.01 per share; authorized
1,000,000 shares; none issued
| | |
- -
| | | |
- -
| | | |
- -
| | |
- -
| | |
- -
| |
Common stock, voting, par value $0.01 per share at 6/30/17; par
value $5 per share at 12/31/16 and 6/30/16; authorized 20,000,000
shares; issued and outstanding, 10,243,141 shares at 6/30/17
including 67,020 unvested shares, 10,137,149 at 12/31/16, and
10,031,349 shares at 6/30/16 | | |
102
| | | |
50,686
| | | |
50,157
| | |
-99.8
|
%
| |
-99.8
|
%
|
|
Additional paid-in capital
| | |
83,386
| | | |
32,112
| | | |
31,538
| | |
159.7
|
%
| |
164.4
|
%
|
|
Retained earnings
| | |
41,669
| | | |
36,454
| | | |
31,139
| | |
14.3
|
%
| |
33.8
|
%
|
|
Accumulated other comprehensive loss
| |
|
(312
|
)
| |
|
(457
|
)
| |
|
(61
|
)
| |
31.7
|
%
| |
-411.5
|
%
|
| | | | | | | | | |
|
|
Total shareholders' equity
| |
|
124,845
|
| |
|
118,795
|
| |
|
112,773
|
| |
5.1
|
%
| |
10.7
|
%
|
| | | | | | | | | |
|
|
Total liabilities and shareholders' equity
| |
$
|
1,118,417
|
| |
$
|
1,075,357
|
| |
$
|
975,565
|
| |
4.0
|
%
| |
14.6
|
%
|
|
| |
| |
| |
| |
| |
| |
| John Marshall Bancorp, Inc. |
| Consolidated Statements of Income |
| | | | | | | | | | | |
|
| (Dollar amounts in thousands, except per share data) |
| | | | | | | | | | | |
|
| | Three Months Ended | | | | Six Months Ended | | |
| | June 30, | | | | June 30, | | |
| | 2017 | | 2016 | | % Change | | 2017 | | 2016 | | % Change |
| | (Unaudited) | | (Unaudited) | | | (Unaudited) | | (Unaudited) | |
| Interest and Dividend Income | | | | | | | | | | | | |
|
Interest and fees on loans
| |
$
|
11,398
| |
$
|
9,835
| |
15.9
|
%
| |
$
|
22,210
| |
$
|
19,494
| |
13.9
|
%
|
|
Interest on investment securities, taxable
| | |
336
| | |
326
| |
3.1
|
%
| | |
697
| | |
648
| |
7.6
|
%
|
|
Interest on investment securities, tax-exempt
| | |
53
| | |
42
| |
26.2
|
%
| | |
105
| | |
75
| |
40.0
|
%
|
|
Dividends
| | |
105
| | |
85
| |
23.5
|
%
| | |
203
| | |
164
| |
23.8
|
%
|
|
Interest on deposits in banks
| |
|
74
| |
|
29
| |
155.2
|
%
| |
|
153
| |
|
82
| |
86.6
|
%
|
|
Total interest and dividend income
| |
|
11,966
| |
|
10,317
| |
16.0
|
%
| |
|
23,368
| |
|
20,463
| |
14.2
|
%
|
| | | | | | | | | | | |
|
| Interest Expense | | | | | | | | | | | | |
|
Deposits
| | |
1,563
| | |
1,326
| |
17.9
|
%
| | |
3,037
| | |
2,644
| |
14.9
|
%
|
| Federal Home Loan Bank advances
| | |
341
| | |
174
| |
96.0
|
%
| | |
642
| | |
342
| |
87.7
|
%
|
|
Other short-term borrowings
| |
|
8
| |
|
16
| |
-50.0
|
%
| |
|
20
| |
|
31
| |
-35.5
|
%
|
|
Total interest expense
| |
|
1,912
| |
|
1,516
| |
26.1
|
%
| |
|
3,699
| |
|
3,017
| |
22.6
|
%
|
| | | | | | | | | | | |
|
|
Net interest income
| | |
10,054
| | |
8,801
| |
14.2
|
%
| | |
19,669
| | |
17,446
| |
12.7
|
%
|
| | | | | | | | | | | |
|
| Provision for loan losses | |
|
380
| |
|
240
| |
58.3
|
%
| |
|
645
| |
|
2,975
| |
-78.3
|
%
|
| | | | | | | | | | | |
|
|
Net interest income after provision for loan losses
| |
|
9,674
| |
|
8,561
| |
13.0
|
%
| |
|
19,024
| |
|
14,471
| |
31.5
|
%
|
| | | | | | | | | | | |
|
| Noninterest Income | | | | | | | | | | | | |
|
Service charges on deposit accounts
| | |
91
| | |
98
| |
-7.1
|
%
| | |
188
| | |
220
| |
-14.5
|
%
|
|
Bank owned life insurance
| | |
135
| | |
161
| |
-16.1
|
%
| | |
275
| | |
215
| |
27.9
|
%
|
|
Other service charges and fees
| | |
30
| | |
16
| |
87.5
|
%
| | |
54
| | |
35
| |
54.3
|
%
|
|
Gain on sale of securities
| | |
54
| | |
- -
| |
N/M
| | | |
130
| | |
- -
| |
N/M
| |
|
Gain on sale of fixed assets
| | |
- -
| | |
- -
| |
N/M
| | | |
1
| | |
- -
| |
N/M
| |
|
Other operating income
| |
|
- -
| |
|
- -
| |
N/M
|
| |
|
10
| |
|
- -
| |
N/M
|
|
|
Total noninterest income
| |
|
310
| |
|
275
| |
12.7
|
%
| |
|
658
| |
|
470
| |
40.0
|
%
|
| | | | | | | | | | | |
|
| Noninterest Expenses | | | | | | | | | | | | |
|
Salaries and employee benefits
| | |
3,516
| | |
3,088
| |
13.9
|
%
| | |
7,152
| | |
6,132
| |
16.6
|
%
|
|
Occupancy expense of premises
| | |
463
| | |
413
| |
12.1
|
%
| | |
898
| | |
832
| |
7.9
|
%
|
|
Furniture and equipment expenses
| | |
286
| | |
309
| |
-7.4
|
%
| | |
563
| | |
641
| |
-12.2
|
%
|
|
Other operating expenses
| |
|
1,590
| |
|
1,386
| |
14.7
|
%
| |
|
3,172
| |
|
2,850
| |
11.3
|
%
|
|
Total noninterest expenses
| |
|
5,855
| |
|
5,196
| |
12.7
|
%
| |
|
11,785
| |
|
10,455
| |
12.7
|
%
|
| | | | | | | | | | | |
|
|
Income before income taxes
| | |
4,129
| | |
3,640
| |
13.4
|
%
| | |
7,897
| | |
4,486
| |
76.0
|
%
|
| | | | | | | | | | | |
|
| Income tax expense | |
|
1,425
|
|
|
1,214
| |
17.4
|
%
| |
|
2,682
|
|
|
1,500
| |
78.8
|
%
|
| | | | | | | | | | | |
|
|
Net income
| |
$
|
2,704
| |
$
|
2,426
| |
11.5
|
%
| |
$
|
5,215
| |
$
|
2,986
| |
74.6
|
%
|
| | | | | | | | | | | |
|
| Earnings Per Share | | | | | | | | | | | | |
|
Basic
| |
$
|
0.26
| |
$
|
0.24
| |
8.3
|
%
| |
$
|
0.51
| |
$
|
0.30
| |
70.0
|
%
|
|
Diluted
| |
$
|
0.25
| |
$
|
0.23
| |
8.7
|
%
| |
$
|
0.48
| |
$
|
0.28
| |
71.4
|
%
|
|
| |
| |
| |
| |
| |
| |
| |
| |
| John Marshall Bancorp, Inc. |
| | | | | | | | | | | | | | | |
|
| Loan, Deposit and Borrowing Detail (Unaudited) |
| (Dollar amounts in thousands) |
| | | | | | | | | | | | | | | |
|
| | June 30, 2017 | | December 31, 2016 | | June 30, 2016 | | Percentage Change |
| Loans | | $ Amount | | % of Total | | $ Amount | | % of Total | | $ Amount | | % of Total | | Last 6 Mos | | Last 12 Mos |
|
Mortgage loans on real estate
| | | | | | | | | | | | | | | | |
|
Commercial
| |
$
|
552,960
| | |
58.7
|
%
| |
$
|
519,857
| | |
58.0
|
%
| |
$
|
475,702
| | |
58.0
|
%
| |
6.4
|
%
| |
16.2
|
%
|
|
Construction and land development
| | |
190,090
| | |
20.2
|
%
| | |
180,318
| | |
20.1
|
%
| | |
158,798
| | |
19.4
|
%
| |
5.4
|
%
| |
19.7
|
%
|
|
Residential
| |
|
118,087
|
| |
12.5
|
%
| |
|
107,534
|
| |
12.0
|
%
| |
|
99,051
|
| |
12.1
|
%
| |
9.8
|
%
| |
19.2
|
%
|
|
Total mortgage loans on real estate
| |
$
|
861,137
| | |
91.4
|
%
| |
$
|
807,709
| | |
90.1
|
%
| |
$
|
733,551
| | |
89.5
|
%
| |
6.6
|
%
| |
17.4
|
%
|
|
Commercial loans
| | |
79,960
| | |
8.5
|
%
| | |
86,498
| | |
9.7
|
%
| | |
81,861
| | |
10.0
|
%
| |
-7.6
|
%
| |
-2.3
|
%
|
|
Consumer loans
| |
|
1,358
|
| |
0.1
|
%
| |
|
1,820
|
| |
0.2
|
%
| |
|
4,309
|
| |
0.5
|
%
| |
-25.4
|
%
| |
-68.5
|
%
|
|
Total loans
| |
$
|
942,455
| | |
100.0
|
%
| |
$
|
896,027
| | |
100.0
|
%
| |
$
|
819,721
| | |
100.0
|
%
| |
5.2
|
%
| |
15.0
|
%
|
|
Less: Allowance for loan losses
| | |
(8,861
|
)
| | | | |
(8,202
|
)
| | | | |
(8,170
|
)
| | | | | | |
|
Net deferred loan fees
| |
|
(1,709
|
)
| | | |
|
(1,605
|
)
| | | |
|
(1,483
|
)
| | | | | | |
|
Net loans
| |
$
|
931,885
|
| | | |
$
|
886,220
|
| | | |
$
|
810,068
|
| | | | | | |
| | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | |
|
| | June 30, 2017 | | December 31, 2016 | | June 30, 2016 | | Percentage Change |
| Deposits | | $ Amount | | % of Total | | $ Amount | | % of Total | | $ Amount | | % of Total | | Last 6 Mos | | Last 12 Mos |
|
Noninterest-bearing demand deposits
| |
$
|
167,920
| | |
19.1
|
%
| |
$
|
195,065
| | |
23.4
|
%
| |
$
|
144,377
| | |
19.0
|
%
| |
-13.9
|
%
| |
16.3
|
%
|
|
Interest-bearing demand deposits:
| | | | | | | | | | | | | | | | |
|
NOW accounts
| | |
40,511
| | |
4.6
|
%
| | |
12,739
| | |
1.5
|
%
| | |
14,041
| | |
1.8
|
%
| |
218.0
|
%
| |
188.5
|
%
|
|
Money market accounts
| | |
156,201
| | |
17.8
|
%
| | |
187,748
| | |
22.6
|
%
| | |
222,487
| | |
29.2
|
%
| |
-16.8
|
%
| |
-29.8
|
%
|
|
Savings accounts
| | |
7,436
| | |
0.9
|
%
| | |
6,856
| | |
0.8
|
%
| | |
7,659
| | |
1.0
|
%
| |
8.5
|
%
| |
-2.9
|
%
|
|
Certificates of deposit
| | | | | | | | | | | | | | | | |
| $250,000 or more
| | |
190,210
| | |
21.6
|
%
| | |
187,568
| | |
22.5
|
%
| | |
154,476
| | |
20.3
|
%
| |
1.4
|
%
| |
23.1
|
%
|
|
Less than $250,000 | | |
106,683
| | |
12.1
|
%
| | |
101,368
| | |
12.2
|
%
| | |
101,269
| | |
13.3
|
%
| |
5.2
|
%
| |
5.3
|
%
|
|
QwickRate® Certificates of deposit
| | |
22,434
| | |
2.6
|
%
| | |
22,844
| | |
2.8
|
%
| | |
21,602
| | |
2.8
|
%
| |
-1.8
|
%
| |
3.9
|
%
|
|
ICS®
| | |
60,852
| | |
6.9
|
%
| | |
- -
| | |
0.0
|
%
| | |
- -
| | |
0.0
|
%
| |
N/M
| | |
N/M
| |
|
CDARS®
| | |
83,573
| | |
9.5
|
%
| | |
71,799
| | |
8.6
|
%
| | |
69,518
| | |
9.1
|
%
| |
16.4
|
%
| |
20.2
|
%
|
|
Brokered deposits
| |
|
43,014
|
| |
4.9
|
%
| |
|
46,878
|
| |
5.6
|
%
| |
|
26,903
|
| |
3.5
|
%
| |
-8.2
|
%
| |
59.9
|
%
|
|
Total deposits
| |
$
|
878,834
|
| |
100.0
|
%
| |
$
|
832,865
|
| |
100.0
|
%
| |
$
|
762,332
|
| |
100.0
|
%
| |
5.5
|
%
| |
15.3
|
%
|
| | | | | | | | | | | | | | | |
|
| Borrowings | | | | | | | | | | | | | | | | |
|
Customer repurchase agreements
| |
$
|
2,723
| | |
2.5
|
%
| |
$
|
14,206
| | |
12.0
|
%
| |
$
|
16,355
| | |
17.2
|
%
| |
-80.8
|
%
| |
-83.4
|
%
|
| Federal Home Loan Bank advances
| |
|
107,000
|
| |
97.5
|
%
| |
|
104,000
|
| |
88.0
|
%
| |
|
79,000
|
| |
82.8
|
%
| |
2.9
|
%
| |
35.4
|
%
|
|
Total borrowings
| |
$
|
109,723
|
| |
100.0
|
%
| |
$
|
118,206
|
| |
100.0
|
%
| |
$
|
95,355
|
| |
100.0
|
%
| |
-7.2
|
%
| |
15.1
|
%
|
| | | | | | | | | | | | | | | |
|
|
Total deposits and borrowings
| |
$
|
988,557
|
| | | |
$
|
951,071
|
| | | |
$
|
857,687
|
| | | |
3.9
|
%
| |
15.3
|
%
|
| | | | | | | | | | | | | | | |
|
|
Core customer funding sources (1)
| |
$
|
816,109
| | |
82.6
|
%
| |
$
|
777,349
| | |
81.7
|
%
| |
$
|
730,182
| | |
85.1
|
%
| |
5.0
|
%
| |
11.8
|
%
|
|
Wholesale funding sources (2)
| |
|
172,448
|
| |
17.4
|
%
| |
|
173,722
|
| |
18.3
|
%
| |
|
127,505
|
| |
14.9
|
%
| |
-0.7
|
%
| |
35.2
|
%
|
|
Total funding sources
| |
$
|
988,557
|
| |
100.0
|
%
| |
$
|
951,071
|
| |
100.0
|
%
| |
$
|
857,687
|
| |
100.0
|
%
| |
3.9
|
%
| |
15.3
|
%
|
|
| |
|
(1)
| |
Includes ICS and CDARS(r), which are all reciprocal deposits
maintained by customers, and repurchase agreements, which represent
sweep accounts tied to customer operating accounts.
|
|
(2)
| |
Consists of QwickRate(r) certificates of deposit, brokered deposits
and Federal Home Loan Bank advances.
|
|
| |
| |
| |
| |
| |
| |
| John Marshall Bancorp, Inc. |
| Average Balance Sheets, Interest and Rates (unaudited) |
| (Dollar amounts in thousands) |
| | | | | | | | | | | |
|
| | Three Months Ended June 30, 2017 | | Three Months Ended June 30, 2016 |
| | | | Interest | | Average | | | | Interest | | Average |
| | Average | | Income- | | Yields | | Average | | Income- | | Yields |
| | Balance | | Expense | | /Rates | | Balance | | Expense | | /Rates |
| Assets | | | | | | | | | | | | |
|
Securities
| |
$
|
93,167
| |
$
|
494
| |
2.13
|
%
| |
$
|
90,969
| |
$
|
453
| |
2.00
|
%
|
|
Loans, net of unearned income
| | |
935,582
| | |
11,398
| |
4.89
|
%
| | |
805,377
| | |
9,835
| |
4.91
|
%
|
|
Interest-bearing deposits in other banks
| | |
26,937
| | |
74
| |
1.10
|
%
| | |
25,502
| | |
29
| |
0.46
|
%
|
|
Federal funds sold
| |
|
58
| |
|
- -
| |
N/M
|
| |
|
- -
| |
|
- -
| |
N/M
|
|
| Total interest-earning assets | |
$
|
1,055,743
| |
$
|
11,966
| |
4.55
|
%
| |
$
|
921,848
| |
$
|
10,317
| |
4.50
|
%
|
|
Other assets
| |
|
32,421
| | | | | |
|
29,943
| | | | |
| Total assets | |
$
|
1,088,164
| | | | | |
$
|
951,791
| | | | |
| Liabilities & Shareholders' equity | | | | | | | | | | | | |
|
Interest-bearing deposits
| | | | | | | | | | | | |
|
NOW accounts
| |
$
|
50,386
| |
$
|
41
| |
0.33
|
%
| |
$
|
13,866
| |
$
|
19
| |
0.55
|
%
|
|
Money market accounts
| | |
192,987
| | |
268
| |
0.56
|
%
| | |
218,314
| | |
291
| |
0.54
|
%
|
|
Savings accounts
| | |
7,385
| | |
4
| |
0.22
|
%
| | |
10,707
| | |
11
| |
0.41
|
%
|
|
Time deposits
| |
|
423,612
| |
|
1,250
| |
1.18
|
%
| |
|
362,303
| |
|
1,005
| |
1.12
|
%
|
|
Total interest-bearing deposits
| |
$
|
674,371
| |
$
|
1,563
| |
0.93
|
%
| |
$
|
605,190
| |
$
|
1,326
| |
0.88
|
%
|
Securities sold under agreement to repurchase and federal funds
purchased
| |
$
|
5,622
| |
$
|
8
| |
0.57
|
%
| |
$
|
15,437
| |
$
|
16
| |
0.42
|
%
|
|
Other borrowed funds
| |
|
110,374
| |
|
341
| |
1.24
|
%
| |
|
68,187
| |
|
174
| |
1.03
|
%
|
| Total interest-bearing liabilities | |
$
|
790,367
| |
$
|
1,912
| |
0.97
|
%
| |
$
|
688,814
| |
$
|
1,516
| |
0.89
|
%
|
|
Demand deposits and other liabilities
| |
|
173,734
| | | | | |
|
150,891
| | | | |
| Total liabilities | |
$
|
964,101
| | | | | |
$
|
839,705
| | | | |
|
Shareholders' equity
| |
|
124,064
| | | | | |
|
112,086
| | | | |
| Total liabilities and shareholders' equity | |
$
|
1,088,164
| | | | | |
$
|
951,791
| | | | |
|
Interest rate spread
| | | | | |
3.58
|
%
| | | | | |
3.61
|
%
|
| Net interest income and margin | | | |
$
|
10,054
| |
3.82
|
%
| | | |
$
|
8,801
| |
3.84
|
%
|
| | | | | | | | | | | |
|
| | | | | | | | | | | |
|
| | Six Months Ended June 30, 2017 | | Six Months Ended June 30, 2016 |
| | | | Interest | | Average | | | | Interest | | Average |
| | Average | | Income- | | Yields | | Average | | Income- | | Yields |
| | Balance | | Expense | | /Rates | | Balance | | Expense | | /Rates |
| Assets | | | | | | | | | | | | |
|
Securities
| |
$
|
94,523
| |
$
|
1,005
| |
2.14
|
%
| |
$
|
89,099
| |
$
|
887
| |
2.00
|
%
|
|
Loans, net of unearned income
| | |
921,842
| | |
22,210
| |
4.86
|
%
| | |
796,052
| | |
19,494
| |
4.92
|
%
|
|
Interest-bearing deposits in other banks
| | |
32,366
| | |
153
| |
0.95
|
%
| | |
33,421
| | |
82
| |
0.49
|
%
|
|
Federal funds sold
| |
|
57
| |
|
- -
| |
0.00
|
%
| |
|
- -
| |
|
- -
| |
0.00
|
%
|
| Total interest-earning assets | |
$
|
1,048,788
| |
$
|
23,368
| |
4.49
|
%
| |
$
|
918,572
| |
$
|
20,463
| |
4.48
|
%
|
|
Other assets
| |
|
32,152
| | | | | |
|
24,581
| | | | |
| Total assets | |
$
|
1,080,940
| | | | | |
$
|
943,153
| | | | |
| Liabilities & Shareholders' equity | | | | | | | | | | | | |
|
Interest-bearing deposits
| | | | | | | | | | | | |
|
NOW accounts
| |
$
|
38,813
| |
$
|
56
| |
0.29
|
%
| |
$
|
17,584
| |
$
|
35
| |
0.40
|
%
|
|
Money market accounts
| | |
200,433
| | |
522
| |
0.53
|
%
| | |
214,857
| | |
573
| |
0.54
|
%
|
|
Savings accounts
| | |
7,312
| | |
8
| |
0.23
|
%
| | |
12,811
| | |
31
| |
0.49
|
%
|
|
Time deposits
| |
|
423,982
| |
|
2,450
| |
1.17
|
%
| |
|
359,726
| |
|
2,005
| |
1.12
|
%
|
|
Total interest-bearing deposits
| |
$
|
670,540
| |
$
|
3,037
| |
0.91
|
%
| |
$
|
604,978
| |
$
|
2,644
| |
0.88
|
%
|
Securities sold under agreement to repurchase and federal funds
purchased
| |
$
|
9,229
| |
$
|
20
| |
0.44
|
%
| |
$
|
14,695
| |
$
|
31
| |
0.42
|
%
|
|
Other borrowed funds
| |
|
106,840
| |
|
642
| |
1.21
|
%
| |
|
67,896
| |
|
342
| |
1.01
|
%
|
| Total interest-bearing liabilities | |
$
|
786,609
| |
$
|
3,699
| |
0.95
|
%
| |
$
|
687,569
| |
$
|
3,017
| |
0.88
|
%
|
|
Demand deposits and other liabilities
| |
|
171,865
| | | | | |
|
143,978
| | | | |
| Total liabilities | |
$
|
958,474
| | | | | |
$
|
831,547
| | | | |
|
Shareholders' equity
| |
|
122,466
| | | | | |
|
111,606
| | | | |
| Total liabilities and shareholders' equity | |
$
|
1,080,940
| | | | | |
$
|
943,153
| | | | |
|
Interest rate spread
| | | | | |
3.54
|
%
| | | | | |
3.60
|
%
|
| Net interest income and margin | | | |
$
|
19,669
| |
3.78
|
%
| | | |
$
|
17,446
| |
3.82
|
%
|
|
| |
| |
| |
| |
| John Marshall Bancorp, Inc. |
| Financial Highlights (Unaudited) |
| (Dollar amounts in thousands, except per share data) |
| | | | | | | |
|
| | At or For the Three Months Ended | | At or For the Six Months Ended |
| | June 30 | | June 30 |
| |
| 2017 |
| |
| 2016 |
| |
| 2017 |
| |
| 2016 |
|
| Per share Data and Shares Outstanding | | | | | | | | |
|
Earnings per share - basic
| |
$
|
0.26
| | |
$
|
0.24
| | |
$
|
0.51
| | |
$
|
0.30
| |
|
Earnings per share - diluted
| |
$
|
0.25
| | |
$
|
0.23
| | |
$
|
0.48
| | |
$
|
0.28
| |
|
Tangible book value per share
| |
$
|
12.19
| | |
$
|
11.24
| | |
$
|
12.19
| | |
$
|
11.24
| |
|
Weighted average common shares (basic)
| | |
10,238,495
| | | |
10,031,011
| | | |
10,221,916
| | | |
10,028,888
| |
|
Weighted average common shares (diluted)
| | |
10,814,851
| | | |
10,538,961
| | | |
10,803,051
| | | |
10,536,838
| |
|
Common shares outstanding at end of period (1) | | |
10,243,141
| | | |
10,031,349
| | | |
10,243,141
| | | |
10,031,349
| |
| | | | | | | |
|
| Performance Ratios | | | | | | | | |
|
Return on average assets (annualized)
| | |
1.00
|
%
| | |
1.03
|
%
| | |
0.97
|
%
| | |
0.64
|
%
|
|
Return on average equity (annualized)
| | |
8.74
|
%
| | |
8.71
|
%
| | |
8.59
|
%
| | |
5.38
|
%
|
|
Yield on earning assets (annualized)
| | |
4.55
|
%
| | |
4.50
|
%
| | |
4.49
|
%
| | |
4.48
|
%
|
|
Cost of interest bearing liabilities (annualized)
| | |
0.97
|
%
| | |
0.89
|
%
| | |
0.95
|
%
| | |
0.88
|
%
|
|
Net interest spread
| | |
3.58
|
%
| | |
3.61
|
%
| | |
3.54
|
%
| | |
3.60
|
%
|
|
Net interest margin
| | |
3.82
|
%
| | |
3.84
|
%
| | |
3.78
|
%
| | |
3.82
|
%
|
|
Noninterest income as a percentage of average assets (annualized)
| | |
0.11
|
%
| | |
0.12
|
%
| | |
0.12
|
%
| | |
0.10
|
%
|
|
Noninterest expense to average assets (annualized)
| | |
2.16
|
%
| | |
2.20
|
%
| | |
2.20
|
%
| | |
2.23
|
%
|
|
Efficiency ratio
| | |
56.5
|
%
| | |
57.2
|
%
| | |
58.0
|
%
| | |
58.4
|
%
|
| | | | | | | |
|
| Asset Quality | | | | | | | | |
|
Loans 30-89 days past due and accruing interest
| |
$
|
108
| | |
$
|
2,101
| | |
$
|
108
| | |
$
|
2,101
| |
|
Non-accrual loans
| |
$
|
3,396
| | |
$
|
3,325
| | |
$
|
3,396
| | |
$
|
3,325
| |
|
Other real estate owned
| |
$
|
-
| | |
$
|
-
| | |
$
|
-
| | |
$
|
-
| |
|
Non-performing assets (2) | |
$
|
3,396
| | |
$
|
3,325
| | |
$
|
3,396
| | |
$
|
3,325
| |
|
Non-performing assets to total assets
| | |
0.30
|
%
| | |
0.34
|
%
| | |
0.30
|
%
| | |
0.34
|
%
|
|
Allowance for loan losses to total loans
| | |
0.94
|
%
| | |
1.00
|
%
| | |
0.94
|
%
| | |
1.00
|
%
|
|
Allowance for loan losses to non-performing loans
| | |
2.6
| | | |
2.5
| | | |
2.6
| | | |
2.5
| |
|
Net loan chargeoffs (recoveries)
| |
$
|
(8
|
)
| |
$
|
-
| | |
$
|
(14
|
)
| |
$
|
1,935
| |
|
Net charge-offs (recoveries) to average loans (annualized)
| | |
0.00
|
%
| | |
0.00
|
%
| | |
0.00
|
%
| | |
0.49
|
%
|
|
Troubled debt restructurings (total)
| |
$
|
501
| | |
$
|
514
| | |
$
|
501
| | |
$
|
514
| |
|
Performing in accordance with modified terms
| |
$
|
501
| | |
$
|
514
| | |
$
|
501
| | |
$
|
514
| |
|
Not performing in accordance with modified terms
| |
$
|
-
| | |
$
|
-
| | |
$
|
-
| | |
$
|
-
| |
| | | | | | | |
|
| Regulatory Capital Ratios | | | | | | | | |
|
Total risk-based capital ratio
| | |
12.3
|
%
| | |
12.7
|
%
| | |
12.3
|
%
| | |
12.7
|
%
|
|
Tier 1 risk-based capital ratio
| | |
11.5
|
%
| | |
11.8
|
%
| | |
11.5
|
%
| | |
11.8
|
%
|
|
Leverage ratio
| | |
11.5
|
%
| | |
11.9
|
%
| | |
11.5
|
%
| | |
11.9
|
%
|
|
Common equity tier 1 ratio
| | |
11.5
|
%
| | |
11.8
|
%
| | |
11.5
|
%
| | |
11.8
|
%
|
| | | | | | | |
|
| Other Information | | | | | | | | |
|
Effective income tax rate
| | |
34.5
|
%
| | |
33.4
|
%
| | |
34.0
|
%
| | |
33.4
|
%
|
|
Tangible equity / tangible assets
| | |
11.2
|
%
| | |
11.6
|
%
| | |
11.2
|
%
| | |
11.6
|
%
|
|
Average tangible equity / average tangible assets
| | |
11.4
|
%
| | |
11.8
|
%
| | |
11.3
|
%
| | |
11.8
|
%
|
|
Number of full time equivalent employees
| | |
123
| | | |
108
| | | |
123
| | | |
108
| |
|
# Full service branch offices
| | |
5
| | | |
5
| | | |
5
| | | |
5
| |
|
# Loan production or limited service branch offices
| | |
2
| | | |
2
| | | |
2
| | | |
2
| |
|
| |
|
(1)
| |
Includes 67,020 unvested shares per balance sheet at June 30, 2017
and no unvested shares at June 30, 2016.
|
|
(2)
| |
Non-performing assets consist of non-accrual loans, loans 90 day or
more past due and still accruing interest, and other real estate
owned. Does not include troubled debt restructurings ("TDRs") which
were accruing interest at the date indicated.
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20170724006255/en/
John Marshall Bancorp, Inc.
John R. Maxwell, 703-584-0840
Source: John Marshall Bancorp, Inc.