RESTON, Va.--(BUSINESS WIRE)--
John Marshall Bancorp, Inc. (OTCQB: JMSB) (the “Company”) reported net
income of $2.7 million for the three months ended September 30, 2017, an
increase of 1.5%, as compared to net income of $2.6 million for the
three months ended September 30, 2016. Net income per diluted share was
$0.19 per share during the three months ending September 30, 2017,
compared to $0.20 per diluted share during the same period in 2016, as
adjusted for the 5 for 4 stock split in the form of a 25% dividend paid
September 5, 2017.
The Company’s three month results produced an annualized return of 0.91%
on average assets and 8.26% on average equity, compared to 1.05% and
9.02%, respectively, for the same period a year ago. As of September 30,
2017, the Company’s tangible book value per share was $9.96, up 8.5%
compared to $9.18 as of September 30, 2016, as adjusted for the 5 for 4
stock split in the form of a 25% dividend paid September 5, 2017.
The Company reported net income of $7.9 million for the nine months
ended September 30, 2017, an increase of $2.3 million compared to $5.6
million for the nine months ended September 30, 2016. In 2016, the lower
earnings were attributable to loan loss provisions of $3.3 million for
first nine months of 2016, compared to $1.1 million for the first nine
months of 2017.
The Company’s capital ratios remain well above regulatory minimums for
well capitalized banks. As of September 30, 2017, the Company’s total
risk-based capital ratio was 14.6%, compared to 12.5% at September 30,
2016.
Balance Sheet Review
Total assets were $1.15 billion at September 30, 2017, $1.08 billion at
December 31, 2016 and $1.02 billion at September 30, 2016. During the
first nine months of 2017 assets increased $78.0 million, or 7.2%.
Year-over-year asset growth, from September 30, 2016 to September 30,
2017, was $135.8 million, or 13.4%. Gross loans were $971.8 million at
September 30, 2017, $896.0 million at December 31, 2016 and $855.0
million at September 30, 2016. During the first nine months of 2017
gross loans increased $75.8 million, or 8.5%. Year-over-year gross loans
increased $116.9 million, or 13.7% from September 30, 2016 to September
30, 2017. Year-over-year net loan growth was $115.2 million, or 13.6%
from September 30, 2016 to September 30, 2017. The Company’s investment
portfolio comprised of held-to-maturity and available-for-sale
securities was $96.6 million at September 30, 2017, $92.4 million at
December 31, 2016 and $93.7 million at September 30, 2016. As of
September 30, 2017, the Company held $43.4 million of its investment
portfolio as held-to-maturity, and $53.2 million as available-for-sale.
The Company also had restricted securities totaling $7.7 million at
September 30, 2017, $7.9 million at December 31, 2016 and $7.0 million
at September 30, 2016. At September 30, 2017, the estimated fair value
of bank owned life insurance was $19.0 million, compared to $18.5
million at December 31, 2016 and $18.4 million at September 30, 2016.
Total deposits were $897.6 million at September 30, 2017, $832.9 million
at December 31, 2016 and $793.9 million at September 30, 2016. During
the first nine months of 2017 total deposits increased $64.7 million, or
7.8%. Year-over-year deposit growth, from September 30, 2016 to
September 30, 2017, was $103.7 million, or 13.1%. Total borrowings,
consisting of Federal Home Loan Bank advances, customer repurchase
agreements and Federal funds purchased, were $98.0 million at September
30, 2017, $118.2 million at December 31, 2016 and $103.1 million at
September 30, 2016. During the first nine months of 2017 borrowings
decreased $20.2 million, or 17.1%.
QwickRate certificates of deposits were $22.2 million at September 30,
2017, $22.8 million at December 31, 2016 and $21.1 million at September
30, 2016. Year-over-year QwickRate certificates of deposits increased
$1.1 million from September 30, 2016 to September 30, 2017. CDARs were
$86.5 million at September 30, 2017, $71.8 million at December 31, 2016
and $74.1 million at September 30, 2016. Year-over-year CDARS increased
$12.3 million. Brokered deposits were $39.5 million at September 30,
2017, $46.9 million at December 31, 2016 and $38.2 million at September
30, 2016. Year-over-year, brokered deposits increased $1.2 million from
September 30, 2016 to September 30, 2017. There were no customer
repurchase agreements at September 30, 2017, $14.2 million at December
31, 2016 and $15.1 million at September 30, 2016. During the first
quarter of 2017, the Company partnered with Promontory to offer insured
cash sweep products (“ICS”). As of September 30, 2017, the Company had
$56.4 million in ICS deposits. The decline in the customer repurchase
agreements were part of an initiative and were mostly moved into ICS.
Federal Home Loan Bank advances were $98.0 million at September 30,
2017, $104.0 million at December 31, 2016 and $83.0 million at September
30, 2016. Year-over-year Federal Home Loan Bank advances increased $15.0
million or 18.1%. Core customer funding was $779.5 million at September
30, 2017, $777.3 million at December 31, 2016 and $749.7 million at
September 30, 2016. Year-over-year core customer funding sources, which
include deposits, customer repurchase agreements, ICS and CDARS,
increased by $29.9 million, or 4.0%, from September 30, 2016 to
September 30, 2017.
Total shareholders’ equity was $127.8 million at September 30, 2017,
$118.8 million at December 31, 2016 and $116.2 million at September 30,
2016. For the first nine months of 2017, shareholders’ equity increased
$9.0 million, or 7.6%.
Year-over-year shareholders’ equity increased by $11.6 million, or
10.0%. Of the year-over-year increase in shareholders’ equity, $10.6
million is related to net income retained during the past twelve months.
Total common shares outstanding increased from 10,129,147 at September
30, 2016 to 12,824,047, including 85,269 unvested shares, at September
30, 2017. The majority of the increase in shares year-over-year was
related to the 5 for 4 stock split in the form of a 25% dividend paid
September 5, 2017.
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
qualify as Tier 2 capital for the Company for regulatory purposes. The
notes are carried at their principal amount, less unamortized issuance
costs.
Income Statement Review
Net interest income
Net interest income, the Company’s primary source of revenue, was $10.3
million for the three months ended September 30, 2017, up 12.6% from
$9.1 million for the three months ended September 30, 2016. The net
interest margin was 3.65% during the third quarter of 2017, compared to
3.77% during the third quarter of 2016. For the nine months ended
September 30, 2017, net interest income was $29.9 million, up 12.7% from
$26.6 million for the nine months ended September 30, 2016. The net
interest margin was 3.73% during the first nine months of 2017, compared
to 3.80% during the first nine months of 2016. The Federal Reserve
increased rates by 25 basis points in December 2016, March 2017 and June
2017. The yield on average net loans increased 15 basis points
year-over-year for the three months ended September 30, 2017 and
increased 1 basis point year-over-year for the nine months ended
September 30, 2017. The average cost of interest bearing liabilities
increased 30 basis points year-over-year for the three months ended
September 30, 2017 and increased 15 basis points year-over-year for the
nine months ended September 30, 2017. The increase in cost of
liabilities during the third quarter of 2017 was primarily related to
the Company’s issuance of subordinated debt.
Notwithstanding the decline in the net interest margin over the past
year, net interest income increased by 12.7% during the first nine
months of 2017, compared to the first nine months of 2016, resulting
primarily from a $138.0 million, or 14.8%, increase in average earning
assets during the first nine months of 2017, compared to the first nine
months of 2016.
Provision for loan losses
The Company recognized a provision for loan losses of $500 thousand
during the third quarter of 2017, compared to a provision of $355
thousand during the third quarter of 2016. The Company reported $345
thousand in net loan charge-offs during the third quarter of 2017 and
$726 thousand during the third quarter of 2016. The increase in
provisions for loan losses during the third quarter of 2017 were related
to specific reserves on the non-accrual loans as disclosed in the asset
quality section.
During the first nine months of 2017, the Company recognized a provision
for loan losses of $1.1 million, compared to a provision of $3.3 million
during the first nine months of 2016. The Company reported $331 thousand
in net charge-offs during the first nine months of 2017, compared to net
loan charge-offs of $2.7 million during the first nine 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 September 30, 2017, the Company reported
total noninterest income of $305 thousand, compared to $267 thousand
during the third quarter of 2016. For the nine months ended September
30, 2017, the Company reported total noninterest income of $963
thousand, compared to $736 thousand during the first nine months of
2016, an increase of 30.8%. The year-over-year increase for the three
month periods ended September 30, 2017 was related to increases in other
service charges and fees. The year-over-year increase for the nine month
period ended September 30, 2017 was primarily attributable to gains on
sales of securities during the first half of 2017 and the increase in
other service charges and fees during the third quarter of 2017.
Noninterest expense
The largest component of the Company’s noninterest expense is employee
salaries and benefits. Salaries and benefits expense increased by 19.6%,
to $3.7 million, during the third quarter of 2017 compared to $3.1
million during the third quarter of 2016. All other operating expenses
increased by $244 thousand, or 12.1%, to $2.3 million during the third
quarter of 2017, compared to $2.0 million during the third quarter of
2016.
During the first nine months of 2017, salaries and employee benefits
expense increased by 17.6%, to $10.8 million, compared to $9.2 million
during the first nine months of 2016. All other operating expenses
increased by 8.7%, or $553 thousand, to $6.9 million, during the first
nine months of 2017, compared to $6.3 million during the first nine
months of 2016.
The increase in salaries and benefits is related to additional staff
needed to support the overall 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 September 30, 2017, non-performing assets were 0.23% of total
assets, up from 0.03% at September 30, 2016. Eight commercial loans
relating to one customer relationship totaling $3.3 million were put on
non-accrual in the first quarter of 2017, of which $677 thousand was
paid down and $190 thousand was charged-off. As of September 30, 2017,
the balance on these loans totaled $2.5 million. The loans are secured
by real estate and a specific reserve of $513 thousand was recorded as
of September 30, 2017.
As of September 30, 2017, there were $20 thousand in loans 30-89 days
past due and still accruing interest As of September 30, 2016, there
were no loans 30-89 days past due and still accruing interest.
Troubled debt restructurings were $498 thousand at September 30, 2017, a
decrease of 2.7% from $512 thousand as of September 30, 2016. All
troubled debt restructurings were performing in accordance with modified
terms as of September 30, 2017. The Company had $392 thousand in other
real estate owned as of September 30, 2017 and no other real estate
owned as of September 30, 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 |
| (Dollar amounts in thousands, except per share data) |
|
| |
| |
| |
| |
| |
| | | | | | | | % Change |
| | September 30, | | December 31, | | September 30, | | Last Nine | | Year Over |
| | 2017 | | 2016 | | 2016 | | Months | | Year |
| Assets | | (Unaudited) | | | | (Unaudited) | | | | |
| | | | | | | | | |
|
|
Cash and due from banks
| |
$
|
5,684
| | |
$
|
4,898
| | |
$
|
7,610
| |
16.0
|
%
| |
-25.3
|
%
|
|
Interest-bearing deposits in banks
| | |
46,512
| | | |
49,717
| | | |
31,067
| |
-6.4
|
%
| |
49.7
|
%
|
|
Federal funds sold
| | |
56
| | | |
60
| | | |
- -
| |
-6.7
|
%
| |
N/M
|
|
Securities available-for-sale, at fair value
| | |
53,197
| | | |
48,312
| | | |
48,397
| |
10.1
|
%
| |
9.9
|
%
|
Securities held-to-maturity, fair value of $43,618 at 9/30/2017,
$44,067 at 12/31/2016 and $46,443 at 9/30/2016 | | |
43,427
| | | |
44,073
| | | |
45,292
| |
-1.5
|
%
| |
-4.1
|
%
|
|
Restricted securities, at cost
| | |
7,695
| | | |
7,873
| | | |
6,959
| |
-2.3
|
%
| |
10.6
|
%
|
Loans, net of allowance for loan losses of $9,017 at 9/30/2017;
$8,202 at 12/31/2016 and $7,799 at 9/30/2016 | | |
960,832
| | | |
886,220
| | | |
845,681
| |
8.4
|
%
| |
13.6
|
%
|
|
Bank premises and equipment, net
| | |
2,543
| | | |
2,471
| | | |
2,520
| |
2.9
|
%
| |
0.9
|
%
|
|
Accrued interest receivable
| | |
3,043
| | | |
2,988
| | | |
2,527
| |
1.8
|
%
| |
20.4
|
%
|
|
Bank owned life insurance
| | |
18,955
| | | |
18,540
| | | |
18,377
| |
2.2
|
%
| |
3.1
|
%
|
|
Other real estate owned
| | |
392
| | | |
- -
| | | |
- -
| |
N/M
| |
N/M
|
|
Other assets
| |
|
10,979
|
| |
|
10,205
|
| |
|
9,047
| |
7.6
|
%
| |
21.4
|
%
|
| | | | | | | | | |
|
|
Total assets
| |
$
|
1,153,315
|
| |
$
|
1,075,357
|
| |
$
|
1,017,477
| |
7.2
|
%
| |
13.4
|
%
|
| | | | | | | | | |
|
| Liabilities and Shareholders' Equity | | | | | | | | | | |
| | | | | | | | | |
|
| Liabilities | | | | | | | | | | |
|
Deposits:
| | | | | | | | | | |
|
Non-interest bearing demand deposits
| |
$
|
177,226
| | |
$
|
195,065
| | |
$
|
162,899
| |
-9.1
|
%
| |
8.8
|
%
|
|
Interest bearing demand deposits
| | |
260,211
| | | |
211,495
| | | |
236,503
| |
23.0
|
%
| |
10.0
|
%
|
|
Savings deposits
| | |
7,043
| | | |
6,856
| | | |
6,038
| |
2.7
|
%
| |
16.6
|
%
|
|
Time deposits
| |
|
453,103
|
| |
|
419,449
|
| |
|
388,438
| |
8.0
|
%
| |
16.6
|
%
|
|
Total deposits
| | |
897,583
| | | |
832,865
| | | |
793,878
| |
7.8
|
%
| |
13.1
|
%
|
|
Federal funds purchased
| | |
- -
| | | |
- -
| | | |
4,990
| |
N/M
| |
N/M
|
|
Repurchase agreements
| | |
- -
| | | |
14,206
| | | |
15,142
| |
-100.0
|
%
| |
-100.0
|
%
|
| Federal Home Loan Bank advances
| | |
98,000
| | | |
104,000
| | | |
83,000
| |
-5.8
|
%
| |
18.1
|
%
|
|
Subordinated debt
| | |
24,519
| | | |
- -
| | | |
- -
| |
N/M
| |
N/M
|
|
Accrued interest payable
| | |
633
| | | |
220
| | | |
210
| |
187.7
|
%
| |
201.4
|
%
|
|
Other liabilities
| |
|
4,802
|
| |
|
5,271
|
| |
|
4,043
| |
-8.9
|
%
| |
18.8
|
%
|
|
Total liabilities
| |
|
1,025,537
|
| |
|
956,562
|
| |
|
901,263
| |
7.2
|
%
| |
13.8
|
%
|
| | | | | | | | | |
|
| 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 9/30/17; par
value $5 per share at 12/31/16 and 9/30/16; authorized 20,000,000
shares; issued and outstanding, 12,824,047 shares at 9/30/2017
including 85,269 unvested shares, 10,137,149 at 12/31/16, and
10,129,147 shares at 9/30/2016 | | |
127
| | | |
50,686
| | | |
50,646
| |
-99.7
|
%
| |
-99.7
|
%
|
|
Additional paid-in capital
| | |
83,670
| | | |
32,112
| | | |
31,797
| |
160.6
|
%
| |
163.1
|
%
|
|
Retained earnings
| | |
44,313
| | | |
36,454
| | | |
33,752
| |
21.6
|
%
| |
31.3
|
%
|
|
Accumulated other comprehensive income (loss)
| |
|
(332
|
)
| |
|
(457
|
)
| |
|
19
| |
27.4
|
%
| |
1847.4
|
%
|
| | | | | | | | | |
|
|
Total shareholders' equity
| |
|
127,778
|
| |
|
118,795
|
| |
|
116,214
| |
7.6
|
%
| |
10.0
|
%
|
| | | | | | | | | |
|
|
Total liabilities and shareholders' equity
| |
$
|
1,153,315
|
| |
$
|
1,075,357
|
| |
$
|
1,017,477
| |
7.2
|
%
| |
13.4
|
%
|
| | | | | | | | | |
|
|
| |
| |
| John Marshall Bancorp, Inc. |
| Consolidated Statements of Income |
|
| |
| | | |
| |
| | | |
| (Dollar amounts in thousands, except per share data) |
| | | | | | | | | | | |
|
| | Three Months Ended | | | | Nine Months Ended | | |
| | September 30, | | | | September 30, | | |
| | 2017 | | 2016 | | % Change | | 2017 | | 2016 | | % Change |
| | (Unaudited) | | (Unaudited) | | | | (Unaudited) | | (Unaudited) | | |
| Interest and Dividend Income | | | | | | | | | | | | |
|
Interest and fees on loans
| |
$
|
12,001
| |
$
|
10,139
| |
18.4
|
%
| |
$
|
34,211
| |
$
|
29,633
| |
15.4
|
%
|
|
Interest on investment securities, taxable
| | |
356
| | |
387
| |
-8.0
|
%
| | |
1,053
| | |
1,035
| |
1.7
|
%
|
|
Interest on investment securities, tax-exempt
| | |
79
| | |
45
| |
75.6
|
%
| | |
184
| | |
120
| |
53.3
|
%
|
|
Dividends
| | |
106
| | |
84
| |
26.2
|
%
| | |
309
| | |
248
| |
24.6
|
%
|
|
Interest on deposits in banks
| |
|
197
| |
|
39
| |
405.1
|
%
| |
|
350
| |
|
122
| |
186.9
|
%
|
|
Total interest and dividend income
| |
|
12,739
| |
|
10,694
| |
19.1
|
%
| |
|
36,107
| |
|
31,158
| |
15.9
|
%
|
| | | | | | | | | | | |
|
| Interest Expense | | | | | | | | | | | | |
|
Deposits
| | |
1,791
| | |
1,360
| |
31.7
|
%
| | |
4,828
| | |
4,003
| |
20.6
|
%
|
| Federal Home Loan Bank advances
| | |
334
| | |
197
| |
69.5
|
%
| | |
976
| | |
540
| |
80.7
|
%
|
|
Subordinated debt
| | |
347
| | |
- -
| |
N/M
| | |
347
| | |
- -
| |
N/M
|
|
Other short-term borrowings
| |
|
1
| |
|
17
| |
-94.1
|
%
| |
|
21
| |
|
48
| |
-56.3
|
%
|
|
Total interest expense
| |
|
2,473
| |
|
1,574
| |
57.1
|
%
| |
|
6,172
| |
|
4,591
| |
34.4
|
%
|
| | | | | | | | | | | |
|
|
Net interest income
| | |
10,266
| | |
9,120
| |
12.6
|
%
| | |
29,935
| | |
26,567
| |
12.7
|
%
|
| | | | | | | | | | | |
|
| Provision for loan losses | |
|
500
| |
|
355
| |
40.8
|
%
| |
|
1,145
| |
|
3,330
| |
-65.6
|
%
|
| | | | | | | | | | | |
|
|
Net interest income after provision for loan losses
| |
|
9,766
| |
|
8,765
| |
11.4
|
%
| |
|
28,790
| |
|
23,237
| |
23.9
|
%
|
| | | | | | | | | | | |
|
| Noninterest Income | | | | | | | | | | | | |
|
Service charges on deposit accounts
| | |
94
| | |
87
| |
8.0
|
%
| | |
282
| | |
307
| |
-8.1
|
%
|
|
Bank owned life insurance
| | |
141
| | |
163
| |
-13.5
|
%
| | |
416
| | |
377
| |
10.3
|
%
|
|
Other service charges and fees
| | |
66
| | |
17
| |
288.2
|
%
| | |
120
| | |
52
| |
130.8
|
%
|
|
Gain on sale of securities available for sale
| | |
4
| | |
- -
| |
N/M
| | |
134
| | |
- -
| |
N/M
|
|
Gain on sale of fixed assets
| | |
- -
| | |
- -
| |
N/M
| | |
1
| | |
- -
| |
N/M
|
|
Other operating income
| |
|
- -
| |
|
- -
| |
N/M
| |
|
10
| |
|
- -
| |
N/M
|
|
Total noninterest income
| |
|
305
| |
|
267
| |
14.2
|
%
| |
|
963
| |
|
736
| |
30.8
|
%
|
| | | | | | | | | | | |
|
| Noninterest Expenses | | | | | | | | | | | | |
|
Salaries and employee benefits
| | |
3,676
| | |
3,073
| |
19.6
|
%
| | |
10,828
| | |
9,205
| |
17.6
|
%
|
|
Occupancy expense of premises
| | |
446
| | |
429
| |
4.0
|
%
| | |
1,344
| | |
1,261
| |
6.6
|
%
|
|
Furniture and equipment expenses
| | |
305
| | |
301
| |
1.3
|
%
| | |
868
| | |
943
| |
-8.0
|
%
|
|
Other operating expenses
| |
|
1,516
| |
|
1,293
| |
17.2
|
%
| |
|
4,688
| |
|
4,143
| |
13.2
|
%
|
|
Total noninterest expenses
| |
|
5,943
| |
|
5,096
| |
16.6
|
%
| |
|
17,728
| |
|
15,552
| |
14.0
|
%
|
| | | | | | | | | | | |
|
|
Income before income taxes
| | |
4,128
| | |
3,936
| |
4.9
|
%
| | |
12,025
| | |
8,421
| |
42.8
|
%
|
| | | | | | | | | | | |
|
| Income tax expense | |
|
1,477
| |
|
1,323
| |
11.6
|
%
| |
|
4,159
| |
|
2,823
| |
47.3
|
%
|
| | | | | | | | | | | |
|
|
Net income
| |
$
|
2,651
| |
$
|
2,613
| |
1.5
|
%
| |
$
|
7,866
| |
$
|
5,598
| |
40.5
|
%
|
| | | | | | | | | | | |
|
| Earnings Per Share (1) | | | | | | | | | | | | |
|
Basic
| |
$
|
0.21
| |
$
|
0.21
| |
0.0
|
%
| |
$
|
0.62
| |
$
|
0.45
| |
37.8
|
%
|
|
Diluted
| |
$
|
0.19
| |
$
|
0.20
| |
-5.0
|
%
| |
$
|
0.58
| |
$
|
0.42
| |
38.1
|
%
|
| | | | | | | | | | | | | | | | | |
|
(1)
|
|
Per share amounts for all periods have been adjusted to reflect a
5 for 4 stock split in the form of a 25% stock dividend paid
September 5, 2017.
|
| |
|
|
|
| John Marshall Bancorp, Inc. |
|
| |
| |
| |
| |
| |
| |
| |
| |
| Loan, Deposit and Borrowing Detail (Unaudited) |
| (Dollar amounts in thousands) |
| | | | | | | | | | | | | | | |
|
| | September 30, 2017 | | December 31, 2016 | | September 30, 2016 |
| Percentage Change |
| Loans | | $ Amount | | % of Total | | $ Amount | | % of Total | | $ Amount | | % of Total | | Last 9 Mos | | Last 12 Mos |
|
Mortgage loans on real estate
| | | | | | | | | | | | | | | | |
|
Commercial
| |
$
|
543,865
| | |
56.0
|
%
| |
$
|
519,857
| | |
58.0
|
%
| |
$
|
503,576
| | |
58.9
|
%
| |
4.6
|
%
| |
8.0
|
%
|
|
Construction and land development
| | |
217,334
| | |
22.3
|
%
| | |
180,318
| | |
20.1
|
%
| | |
173,867
| | |
20.3
|
%
| |
20.5
|
%
| |
25.0
|
%
|
|
Residential
| |
|
131,233
|
| |
13.5
|
%
| |
|
107,534
|
| |
12.0
|
%
| |
|
97,758
|
| |
11.4
|
%
| |
22.0
|
%
| |
34.2
|
%
|
|
Total mortgage loans on real estate
| |
$
|
892,432
| | |
91.8
|
%
| |
$
|
807,709
| | |
90.1
|
%
| |
$
|
775,201
| | |
90.6
|
%
| |
10.5
|
%
| |
15.1
|
%
|
|
Commercial loans
| | |
78,302
| | |
8.1
|
%
| | |
86,498
| | |
9.7
|
%
| | |
78,120
| | |
9.2
|
%
| |
-9.5
|
%
| |
0.2
|
%
|
|
Consumer loans
| |
|
1,096
|
| |
0.1
|
%
| |
|
1,820
|
| |
0.2
|
%
| |
|
1,655
|
| |
0.2
|
%
| |
-39.8
|
%
| |
-33.8
|
%
|
|
Total loans
| |
$
|
971,830
| | |
100.0
|
%
| |
$
|
896,027
| | |
100.0
|
%
| |
$
|
854,976
| | |
100.0
|
%
| |
8.5
|
%
| |
13.7
|
%
|
|
Less: Allowance for loan losses
| | |
(9,017
|
)
| | | | |
(8,202
|
)
| | | | |
(7,799
|
)
| | | | | | |
|
Net deferred loan fees
| |
|
(1,981
|
)
| | | |
|
(1,605
|
)
| | | |
|
(1,496
|
)
| | | | | | |
|
Net loans
| |
$
|
960,832
|
| | | |
$
|
886,220
|
| | | |
$
|
845,681
|
| | | | | | |
| | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | |
|
| | September 30, 2017 | | December 31, 2016 | | September 30, 2016 |
| Percentage Change |
| Deposits | | $ Amount | | % of Total | | $ Amount | | % of Total | | $ Amount | | % of Total | | Last 9 Mos | | Last 12 Mos |
|
Noninterest-bearing demand deposits
| |
$
|
177,226
| | |
19.7
|
%
| |
$
|
195,065
| | |
23.4
|
%
| |
$
|
162,899
| | |
20.5
|
%
| |
-9.1
|
%
| |
8.8
|
%
|
|
Interest-bearing demand deposits:
| | | | | | | | | | | | | | | | |
|
NOW accounts
| | |
41,736
| | |
4.7
|
%
| | |
12,739
| | |
1.5
|
%
| | |
16,866
| | |
2.1
|
%
| |
227.6
|
%
| |
147.5
|
%
|
|
Money market accounts
| | |
155,340
| | |
17.3
|
%
| | |
187,748
| | |
22.6
|
%
| | |
209,633
| | |
26.4
|
%
| |
-17.3
|
%
| |
-25.9
|
%
|
|
Savings accounts
| | |
7,043
| | |
0.8
|
%
| | |
6,856
| | |
0.8
|
%
| | |
6,038
| | |
0.8
|
%
| |
2.7
|
%
| |
16.6
|
%
|
|
Certificates of deposit
| | | | | | | | | | | | | | | | |
| $250,000 or more
| | |
198,362
| | |
22.1
|
%
| | |
187,568
| | |
22.5
|
%
| | |
162,552
| | |
20.5
|
%
| |
5.8
|
%
| |
22.0
|
%
|
|
Less than $250,000 | | |
113,348
| | |
12.6
|
%
| | |
101,368
| | |
12.2
|
%
| | |
102,406
| | |
12.9
|
%
| |
11.8
|
%
| |
10.7
|
%
|
|
QwickRate® Certificates of deposit
| | |
22,185
| | |
2.5
|
%
| | |
22,844
| | |
2.8
|
%
| | |
21,104
| | |
2.7
|
%
| |
-2.9
|
%
| |
5.1
|
%
|
|
ICS®
| | |
56,402
| | |
6.3
|
%
| | |
-
| | |
0.0
|
%
| | |
-
| | |
0.0
|
%
| |
N/M
| |
N/M
|
|
CDARS®
| | |
86,469
| | |
9.6
|
%
| | |
71,799
| | |
8.6
|
%
| | |
74,131
| | |
9.3
|
%
| |
20.4
|
%
| |
16.6
|
%
|
|
Brokered deposits
| |
|
39,472
|
| |
4.4
|
%
| |
|
46,878
|
| |
5.6
|
%
| |
|
38,249
|
| |
4.8
|
%
| |
-15.8
|
%
| |
3.2
|
%
|
|
Total deposits
| |
$
|
897,583
|
| |
100.0
|
%
| |
$
|
832,865
|
| |
100.0
|
%
| |
$
|
793,878
|
| |
100.0
|
%
| |
7.8
|
%
| |
13.1
|
%
|
| | | | | | | | | | | | | | | |
|
| Borrowings | | | | | | | | | | | | | | | | |
|
Federal funds purchased
| |
$
|
-
| | |
0.0
|
%
| |
$
|
-
| | |
0.0
|
%
| |
$
|
4,990
| | |
4.8
|
%
| |
N/M
| |
N/M
|
|
Customer repurchase agreements
| | |
-
| | |
0.0
|
%
| | |
14,206
| | |
12.0
|
%
| | |
15,142
| | |
14.7
|
%
| |
N/M
| |
N/M
|
| Federal Home Loan Bank advances
| | |
98,000
| | |
80.0
|
%
| | |
104,000
| | |
88.0
|
%
| | |
83,000
| | |
80.5
|
%
| |
-5.8
|
%
| |
18.1
|
%
|
|
Subordinated debt
| |
|
24,519
|
| |
20.0
|
%
| |
|
-
|
| |
0.0
|
%
| |
|
-
|
| |
0.0
|
%
| |
N/M
| |
N/M
|
|
Total borrowings
| |
$
|
122,519
|
| |
100.0
|
%
| |
$
|
118,206
|
| |
100.0
|
%
| |
$
|
103,132
|
| |
100.0
|
%
| |
3.6
|
%
| |
18.8
|
%
|
| | | | | | | | | | | | | | | |
|
|
Total deposits and borrowings
| |
$
|
1,020,102
|
| | | |
$
|
951,071
|
| | | |
$
|
897,010
|
| | | |
7.3
|
%
| |
13.7
|
%
|
| | | | | | | | | | | | | | | |
|
|
Core customer funding sources (1)
| |
$
|
835,926
| | |
81.9
|
%
| |
$
|
777,349
| | |
81.7
|
%
| |
$
|
749,667
| | |
83.6
|
%
| |
7.5
|
%
| |
11.5
|
%
|
|
Wholesale funding sources (2)
| | |
159,657
| | |
15.7
|
%
| | |
173,722
| | |
18.3
|
%
| | |
147,343
| | |
16.4
|
%
| |
-8.1
|
%
| |
8.4
|
%
|
|
Subordinated debt (3)
| |
|
24,519
|
| |
2.4
|
%
| |
|
-
|
| |
0.0
|
%
| |
|
-
|
| |
0.0
|
%
| |
N/M
| |
N/M
|
|
Total funding sources
| |
$
|
1,020,102
|
| |
100.0
|
%
| |
$
|
951,071
|
| |
100.0
|
%
| |
$
|
897,010
|
| |
100.0
|
%
| |
7.3
|
%
| |
13.7
|
%
|
| | | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
(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.
|
|
(3)
| |
Subordinated debt obligation qualifies as Tier 2 capital.
|
| |
|
|
| |
| |
| |
| |
| |
| |
| John Marshall Bancorp, Inc. |
| Average Balance Sheets, Interest and Rates (unaudited) |
| (Dollar amounts in thousands) |
| | | | | | | | | | | |
|
| | Three Months Ended September 30, 2017 | | Three Months Ended September 30, 2016 |
| | | | Interest | | Average | | | | Interest | | Average |
| | Average | | Income- | | Yields | | Average | | Income- | | Yields |
| | Balance | | Expense | | /Rates | | Balance | | Expense | | /Rates |
| Assets | | | | | | | | | | | | |
|
Securities
| |
$
|
99,432
| |
$
|
541
| |
2.16
|
%
| |
$
|
99,024
| |
$
|
516
| |
2.07
|
%
|
|
Loans, net of unearned income
| | |
956,911
| | |
12,001
| |
4.98
|
%
| | |
835,281
| | |
10,139
| |
4.83
|
%
|
|
Interest-bearing deposits in other banks
| | |
60,012
| | |
197
| |
1.30
|
%
| | |
28,948
| | |
39
| |
0.54
|
%
|
|
Federal funds sold
| |
|
58
| |
|
-
| |
0.00
|
%
| |
|
18
| |
-
| |
0.00
|
%
|
| Total interest-earning assets | |
$
|
1,116,413
| |
$
|
12,739
| |
4.53
|
%
| |
$
|
963,271
| |
$
|
10,694
| |
4.42
|
%
|
|
Other assets
| |
|
33,569
| | | | | |
|
30,822
| | | | |
| Total assets | |
$
|
1,149,982
| | | | | |
$
|
994,093
| | | | |
| Liabilities & Shareholders' equity | | | | | | | | | | | | |
|
Interest-bearing deposits
| | | | | | | | | | | | |
|
NOW accounts
| |
$
|
59,693
| |
$
|
53
| |
0.35
|
%
| |
$
|
13,634
| |
$
|
13
| |
0.38
|
%
|
|
Money market accounts
| | |
200,151
| | |
320
| |
0.63
|
%
| | |
218,365
| | |
263
| |
0.48
|
%
|
|
Savings accounts
| | |
6,896
| | |
4
| |
0.23
|
%
| | |
6,673
| | |
4
| |
0.24
|
%
|
|
Time deposits
| |
|
444,301
| |
|
1,414
| |
1.26
|
%
| |
|
383,935
| |
|
1,080
| |
1.12
|
%
|
|
Total interest-bearing deposits
| |
$
|
711,041
| |
$
|
1,791
| |
1.00
|
%
| |
$
|
622,607
| |
$
|
1,360
| |
0.87
|
%
|
Securities sold under agreement to repurchase and federal funds
purchased
| |
$
|
1,334
| |
$
|
1
| |
0.30
|
%
| |
$
|
16,037
| |
$
|
17
| |
0.42
|
%
|
|
Subordinated debt
| | |
23,189
| | |
347
| |
5.94
|
%
| | |
-
| | |
-
| |
N/M
| |
|
Other borrowed funds
| |
|
102,620
| |
|
334
| |
1.29
|
%
| |
|
77,804
| |
|
197
| |
1.01
|
%
|
| Total interest-bearing liabilities | |
$
|
838,184
| |
$
|
2,473
| |
1.17
|
%
| |
$
|
716,448
| |
$
|
1,574
| |
0.87
|
%
|
|
Demand deposits and other liabilities
| |
|
184,408
| | | | | |
|
162,404
| | | | |
| Total liabilities | |
$
|
1,022,592
| | | | | |
$
|
878,852
| | | | |
|
Shareholders' equity
| |
|
127,390
| | | | | |
|
115,241
| | | | |
| Total liabilities and shareholders' equity | |
$
|
1,149,982
| | | | | |
$
|
994,093
| | | | |
|
Interest rate spread
| | | | | |
3.36
|
%
| | | | | |
3.55
|
%
|
| Net interest income and margin | | | |
$
|
10,266
| |
3.65
|
%
| | | |
$
|
9,120
| |
3.77
|
%
|
| | | | | | | | | | | |
|
| | | | | | | | | | | |
|
| | Nine Months Ended September 30, 2017 | | Nine Months Ended September 30, 2016 |
| | | | Interest | | Average | | | | Interest | | Average |
| | Average | | Income- | | Yields | | Average | | Income- | | Yields |
| | Balance | | Expense | | /Rates | | Balance | | Expense | | /Rates |
| Assets | | | | | | | | | | | | |
|
Securities
| |
$
|
96,177
| |
$
|
1,546
| |
2.15
|
%
| |
$
|
92,432
| |
$
|
1,403
| |
2.03
|
%
|
|
Loans, net of unearned income
| | |
933,660
| | |
34,211
| |
4.90
|
%
| | |
809,223
| | |
29,633
| |
4.89
|
%
|
|
Interest-bearing deposits in other banks
| | |
41,683
| | |
350
| |
1.12
|
%
| | |
31,914
| | |
122
| |
0.51
|
%
|
|
Federal funds sold
| |
|
57
| |
|
-
| |
0.00
|
%
| |
|
6
| |
-
| |
0.00
|
%
|
| Total interest-earning assets | |
$
|
1,071,577
| |
$
|
36,107
| |
4.51
|
%
| |
$
|
933,575
| |
$
|
31,158
| |
4.46
|
%
|
|
Other assets
| |
|
32,630
| | | | | |
|
26,682
| | | | |
| Total assets | |
$
|
1,104,207
| | | | | |
$
|
960,257
| | | | |
| Liabilities & Shareholders' equity | | | | | | | | | | | | |
|
Interest-bearing deposits
| | | | | | | | | | | | |
|
NOW accounts
| |
$
|
45,849
| |
$
|
108
| |
0.31
|
%
| |
$
|
16,258
| |
$
|
48
| |
0.40
|
%
|
|
Money market accounts
| | |
200,338
| | |
843
| |
0.56
|
%
| | |
216,035
| | |
835
| |
0.52
|
%
|
|
Savings accounts
| | |
7,172
| | |
12
| |
0.22
|
%
| | |
10,750
| | |
36
| |
0.44
|
%
|
|
Time deposits
| |
|
430,830
| |
|
3,865
| |
1.20
|
%
| |
|
367,854
| |
|
3,084
| |
1.12
|
%
|
|
Total interest-bearing deposits
| |
$
|
684,189
| |
$
|
4,828
| |
0.94
|
%
| |
$
|
610,897
| |
$
|
4,003
| |
0.88
|
%
|
Securities sold under agreement to repurchase and federal funds
purchased
| |
$
|
6,568
| |
$
|
21
| |
0.43
|
%
| |
$
|
15,146
| |
$
|
48
| |
0.42
|
%
|
|
Subordinated debt
| | |
7,814
| | |
347
| |
5.94
|
%
| | |
-
| | |
-
| |
N/M
| |
|
Other borrowed funds
| |
|
105,418
| |
|
976
| |
1.24
|
%
| |
|
71,223
| |
|
540
| |
1.01
|
%
|
| Total interest-bearing liabilities | |
$
|
803,989
| |
$
|
6,172
| |
1.03
|
%
| |
$
|
697,266
| |
$
|
4,591
| |
0.88
|
%
|
|
Demand deposits and other liabilities
| |
|
176,040
| | | | | |
|
150,165
| | | | |
| Total liabilities | |
$
|
980,029
| | | | | |
$
|
847,431
| | | | |
|
Shareholders' equity
| |
|
124,178
| | | | | |
|
112,826
| | | | |
| Total liabilities and shareholders' equity | |
$
|
1,104,207
| | | | | |
$
|
960,257
| | | | |
|
Interest rate spread
| | | | | |
3.48
|
%
| | | | | |
3.58
|
%
|
| Net interest income and margin | | | |
$
|
29,935
| |
3.73
|
%
| | | |
$
|
26,567
| |
3.80
|
%
|
|
| |
| |
| |
| |
| 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 Nine Months Ended |
| | September 30, | | September 30, |
| |
| 2017 |
| |
| 2016 |
| |
| 2017 |
| |
| 2016 |
|
| Per share Data and Shares Outstanding(1) | | | | | | | | |
|
Earnings per share - basic
| |
$
|
0.21
| | |
$
|
0.21
| | |
$
|
0.62
| | |
$
|
0.45
| |
|
Earnings per share - diluted
| |
$
|
0.19
| | |
$
|
0.20
| | |
$
|
0.58
| | |
$
|
0.42
| |
|
Tangible book value per share
| |
$
|
9.96
| | |
$
|
9.18
| | |
$
|
9.96
| | |
$
|
9.18
| |
|
Weighted average common shares (basic)
| | |
12,807,615
| | | |
12,607,111
| | | |
12,787,372
| | | |
12,559,950
| |
|
Weighted average common shares (diluted)
| | |
13,627,880
| | | |
13,199,461
| | | |
13,651,347
| | | |
13,179,493
| |
|
Common shares outstanding at end of period
| | |
12,824,047
| | | |
12,661,434
| | | |
12,824,047
| | | |
12,661,434
| |
| | | | | | | |
|
| Performance Ratios | | | | | | | | |
|
Return on average assets (annualized)
| | |
0.91
|
%
| | |
1.05
|
%
| | |
0.95
|
%
| | |
0.78
|
%
|
|
Return on average equity (annualized)
| | |
8.26
|
%
| | |
9.02
|
%
| | |
8.47
|
%
| | |
6.63
|
%
|
|
Yield on earning assets (annualized)
| | |
4.53
|
%
| | |
4.42
|
%
| | |
4.51
|
%
| | |
4.46
|
%
|
|
Cost of interest bearing liabilities (annualized)
| | |
1.17
|
%
| | |
0.87
|
%
| | |
1.03
|
%
| | |
0.88
|
%
|
|
Net interest spread
| | |
3.36
|
%
| | |
3.55
|
%
| | |
3.48
|
%
| | |
3.58
|
%
|
|
Net interest margin
| | |
3.65
|
%
| | |
3.77
|
%
| | |
3.73
|
%
| | |
3.80
|
%
|
|
Noninterest income as a percentage of average assets (annualized)
| | |
0.11
|
%
| | |
0.11
|
%
| | |
0.12
|
%
| | |
0.10
|
%
|
|
Noninterest expense to average assets (annualized)
| | |
2.05
|
%
| | |
2.04
|
%
| | |
2.15
|
%
| | |
2.16
|
%
|
|
Efficiency ratio
| | |
56.2
|
%
| | |
54.3
|
%
| | |
57.4
|
%
| | |
57.0
|
%
|
| | | | | | | |
|
| Asset Quality | | | | | | | | |
|
Loans 30-89 days past due and accruing interest
| |
$
|
20
| | |
$
|
-
| | |
$
|
20
| | |
$
|
-
| |
|
Non-accrual loans
| |
$
|
2,287
| | |
$
|
349
| | |
$
|
2,287
| | |
$
|
349
| |
|
Other real estate owned
| |
$
|
392
| | |
$
|
-
| | |
$
|
392
| | |
$
|
-
| |
|
Non-performing assets (2)
| |
$
|
2,679
| | |
$
|
349
| | |
$
|
2,679
| | |
$
|
349
| |
|
Non-performing assets to total assets
| | |
0.23
|
%
| | |
0.03
|
%
| | |
0.23
|
%
| | |
0.03
|
%
|
|
Allowance for loan losses to total loans
| | |
0.93
|
%
| | |
0.91
|
%
| | |
0.93
|
%
| | |
0.91
|
%
|
|
Allowance for loan losses to non-performing loans
| | |
3.9
| | | |
22.3
| | | |
3.9
| | | |
22.3
| |
|
Net loan charge-offs
| |
$
|
345
| | |
$
|
726
| | |
$
|
331
| | |
$
|
2,661
| |
|
Net charge-offs to average loans (annualized)
| | |
0.14
|
%
| | |
0.35
|
%
| | |
0.05
|
%
| | |
0.38
|
%
|
|
Troubled debt restructurings (total)
| |
$
|
498
| | |
$
|
512
| | |
$
|
498
| | |
$
|
512
| |
|
Performing in accordance with modified terms
| |
$
|
498
| | |
$
|
512
| | |
$
|
498
| | |
$
|
512
| |
|
Not performing in accordance with modified terms
| |
$
|
-
| | |
$
|
-
| | |
$
|
-
| | |
$
|
-
| |
| | | | | | | |
|
| Regulatory Capital Ratios | | | | | | | | |
|
Total risk-based capital ratio
| | |
14.6
|
%
| | |
12.5
|
%
| | |
14.6
|
%
| | |
12.5
|
%
|
|
Tier 1 risk-based capital ratio
| | |
11.6
|
%
| | |
11.7
|
%
| | |
11.6
|
%
| | |
11.7
|
%
|
|
Leverage ratio
| | |
11.1
|
%
| | |
11.7
|
%
| | |
11.1
|
%
| | |
11.7
|
%
|
|
Common equity tier 1 ratio
| | |
11.6
|
%
| | |
11.7
|
%
| | |
11.6
|
%
| | |
11.7
|
%
|
| | | | | | | |
|
| Other Information | | | | | | | | |
|
Effective income tax rate
| | |
35.8
|
%
| | |
33.6
|
%
| | |
34.6
|
%
| | |
33.5
|
%
|
|
Tangible equity / tangible assets
| | |
11.1
|
%
| | |
11.4
|
%
| | |
11.1
|
%
| | |
11.4
|
%
|
|
Average tangible equity / average tangible assets
| | |
11.1
|
%
| | |
11.6
|
%
| | |
11.2
|
%
| | |
11.7
|
%
|
|
Number of full time equivalent employees
| | |
125
| | | |
111
| | | |
125
| | | |
111
| |
|
# Full service branch offices
| | |
5
| | | |
5
| | | |
5
| | | |
5
| |
|
# Loan production or limited service branch offices
| | |
2
| | | |
2
| | | |
2
| | | |
2
| |
|
|
|
(1) Shares and per share amounts for all periods have been adjusted
to reflect a 5 for 4 stock split in the form of a 25% stock dividend
paid September 5, 2017.
|
|
(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/20171026005936/en/
John Marshall Bancorp, Inc.
John R. Maxwell, 703-584-0840
Source: John Marshall Bancorp, Inc.