Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-41315 John Marshall Bancorp, Inc. (Exact name of registrant as specified in its charter) Virginia 81-5424879 ( ...

10% Annualized Loan Growth Drives 24% Annualized Earnings per Share Growth Net Interest Margin and Loan Commitments Experience Significant Increases Exhibit 99.1 For Immediate Release July 23, 2025 Reston, VA – John Marshall Bancorp, Inc. (Nasdaq: JMSB) (the "Company"), parent company of John Marshall Bank (the "Bank"), reported net income of $5.1 million for the quarter ended June 30, 2025 compared to $3.9 million for the quarter ended June 30, 2024, an increase of $1.2 million or 30.7%. Diluted earnings p ...

Financial Performance - The Company achieved net income of $4.8 million for the three months ended March 31, 2025, an increase of 14.3% compared to $4.2 million for the same period in 2024 [173]. - Diluted earnings per share rose to $0.34 for the three months ended March 31, 2025, compared to $0.30 for the same period in 2024, reflecting a 13.3% increase [173]. - Net interest income increased to $14.1 million for the three months ended March 31, 2025, up from $11.7 million in the same period of 2024, representing a growth of 19.5% [170]. - Non-interest income decreased to $505,000 for the three months ended March 31, 2025, down from $818,000 in the same period of 2024 [170]. - The efficiency ratio improved to 56.5% for the three months ended March 31, 2025, compared to 63.1% for the same period in 2024, indicating better cost management [170]. Asset and Liability Management - As of March 31, 2025, the Company reported total consolidated assets of $2.27 billion, total loans of $1.87 billion, total deposits of $1.92 billion, and total shareholders' equity of $253.0 million [164]. - Total assets increased by $37.5 million or 1.7% to $2.27 billion as of March 31, 2025, primarily due to a $42.0 million rise in interest-bearing deposits [199]. - Total liabilities grew by $31.1 million or 1.6% to $2.02 billion, mainly due to a net increase in deposits of $29.8 million [200]. - Shareholders' equity increased by $6.3 million or 2.6% to $253.0 million, attributed to higher net income and a decrease in accumulated other comprehensive loss [201]. Loan and Deposit Information - Gross loans decreased by $1.7 million to $1.87 billion as of March 31, 2025, reflecting the company's disciplined underwriting standards [208]. - The composition of loans held for investment as of March 31, 2025, included 62.84% in commercial real estate loans, 9.29% in construction and land development, and 25.33% in residential loans [210]. - Total deposits increased by $29.8 million or 1.6% to $1.92 billion as of March 31, 2025, with non-interest bearing demand deposits at $437.8 million [224]. - Interest-bearing deposits rose by $25.2 million or 1.7% to $1.48 billion, representing 77.2% of total deposits as of March 31, 2025 [225]. Credit Quality and Allowance for Loan Losses - The Company maintained an allowance for loan credit losses of $18.8 million, which is 1.01% of total gross loans net of unearned income [170]. - The allowance for loan credit losses was $18.8 million, representing 1.01% of outstanding loans as of March 31, 2025, compared to 1.00% at December 31, 2024 [218]. - The Company recorded a provision for credit losses of $170 thousand for the first quarter of 2025, compared to a recovery of $776 thousand for the first quarter of 2024 [191]. - The company reported no nonperforming assets as of March 31, 2025, maintaining strong asset quality [213]. - Nonaccrual loans remained at 0.00% of gross loans, indicating no loans were placed on nonaccrual status during the reporting period [216]. Capital Ratios and Equity - The equity-to-total assets ratio increased to 11.9% as of March 31, 2025, compared to 11.3% as of March 31, 2024 [170]. - The total risk-based capital ratio improved to 16.5% as of March 31, 2025, compared to 16.1% as of March 31, 2024 [170]. - Shareholders' equity increased by $6.3 million or 2.6% to $253.0 million at March 31, 2025, with a book value per share of $17.72 [233]. Investment and Liquidity - The Company purchased $3.6 million of investment securities in Q1 2025, including $2.6 million in agency mortgage-backed securities [203]. - Total liquidity was $786.9 million at March 31, 2025, an increase from $727.3 million at December 31, 2024 [237]. - The Company had a total FHLB available borrowing capacity of $401.0 million and additional borrowing capacity with the Reserve Bank of approximately $107.1 million as of March 31, 2025 [236]. - The Company had available federal funds lines with correspondent banks of $110.0 million at March 31, 2025 [238]. Interest Rates and Income - The average interest rate on total interest-bearing deposits was 3.42% for the three months ended March 31, 2025 [228]. - Interest income increased by $0.4 million or 1.4% to $27.3 million on a fully tax-equivalent basis for the three months ended March 31, 2025, driven by increases in both rates and volume on interest-earning assets [186]. - Interest expense decreased by $2.0 million to $13.2 million for the three months ended March 31, 2025, compared to $15.2 million for the same period in 2024, mainly due to lower rates on deposits and decreased volume on borrowings [190].

Financial Performance - Net income for Q1 2025 was $4.8 million, a 14.4% increase from $4.2 million in Q1 2024, with diluted earnings per share rising to $0.34 from $0.30[2] - Pre-tax, pre-provision earnings (Non-GAAP) increased by 37.0% to $6.4 million in Q1 2025 compared to the same period in 2024[3] - The Company reported net income of $4.8 million for Q1 2025, a 14.4% increase from Q1 2024[27] - Pre-tax, pre-provision earnings (Non-GAAP) were $6.4 million for Q1 2025, a 37.0% increase compared to $4.6 million in Q1 2024[27] - Net income for the quarter was $4,810 thousand, reflecting a 14.4% increase from $4,204 thousand year-over-year[43] - Basic and diluted earnings per share both increased by 13.3% to $0.34 compared to $0.30 in the prior year[46] Income and Expenses - Net interest income rose by 20.0% to $14.1 million in Q1 2025, driven by a net interest margin increase of 47 basis points to 2.58%[3] - Net interest income increased by $2.4 million or 20.0% in Q1 2025, driven by higher loan yields and a reduction in maturing deposits[28] - Non-interest income decreased by $313 thousand to $505 thousand in Q1 2025, primarily due to unfavorable mark-to-market adjustments[31] - Non-interest expense increased by $324 thousand or 4.1% in Q1 2025, mainly due to higher salary and employee benefit expenses[32] - Total non-interest income decreased by 38.3% to $505,000 from $818,000 year-over-year[46] - Total non-interest expenses increased by 4.1% to $8,248,000 compared to $7,924,000 in the previous year[46] Asset and Liability Management - Total assets reached $2.27 billion as of March 31, 2025, reflecting a 1.7% increase since December 31, 2024[5] - Total loans increased by 2.4% to $1.87 billion compared to $1.83 billion a year earlier, with significant growth in investor real estate and construction loans[6] - Total deposits reached $1,922,175 thousand, a 1.6% increase from $1,892,415 thousand in the previous quarter[43] - Total loans amounted to $1,866,074 million, with a slight decrease from $1,867,652 million in the previous quarter[51] - Total deposits increased to $1,922,175 million, up from $1,892,415 million in the previous quarter, reflecting a growth of 1.6%[51] Capital and Liquidity - The Bank's total risk-based capital ratio was 16.5% as of March 31, 2025, well above the regulatory threshold of 10.0%[13] - The liquidity position totaled $786.9 million, representing 34.5% of total assets, an increase from 32.5% at the end of 2024[8] - Total risk-based capital increased to $300,729 thousand as of March 31, 2025, up from $286,038 thousand as of March 31, 2024, a growth of 5.14%[59] - Tier 1 capital rose to $281,335 thousand as of March 31, 2025, compared to $267,795 thousand as of March 31, 2024, an increase of 5.06%[59] - The adjusted total risk-based capital ratio improved to 15.7% as of March 31, 2025, compared to 15.0% as of March 31, 2024[59] Efficiency and Quality - The efficiency ratio improved to 56.5% in Q1 2025 from 63.1% in Q1 2024, attributed to increased net interest income[33] - The Company recorded no charge-offs during Q1 2025, maintaining excellent asset quality with no loans greater than 30 days past due[17] - The Company recorded a provision for credit losses of $170 thousand in Q1 2025, compared to a recovery of $776 thousand in Q1 2024[30] - Return on average assets (annualized) increased to 0.87%, compared to 0.75% in the previous year[43] - Return on average equity (annualized) improved to 7.76%, up from 7.23% year-over-year[43]

Loan Portfolio Composition - Approximately 17.6% of the loan portfolio is related to owner-occupied commercial real estate loans, while 40.5% is related to managed investment commercial real estate[48]. - Construction and development loans made up approximately 8.8% of the loan portfolio as of December 31, 2024[51]. - Combined, commercial term loans and lines of credit represent approximately 2.6% of the loan portfolio as of December 31, 2024[55]. - Bank originated 1-4 residential mortgage loans represented 3.5% of the loan portfolio as of December 31, 2024[56]. - Approximately 16.0% of the loan portfolio related to purchased adjustable-rate mortgages as of December 31, 2024[57]. Credit Risk Management - The company adheres to a disciplined and conservative underwriting approach to manage credit risk, focusing on maintaining a healthy risk profile[76]. - Risk management processes include quarterly assessments and annual evaluations of various risk exposures, overseen by the board of directors[72]. - The company’s risk management processes are overseen by its senior management, who report to the board of directors[74]. - The company’s Asset and Liability Committee oversees the management of interest rate and liquidity risk[77]. - The company has established risk appetite metrics to reflect the levels and types of risk it is willing to accept[74]. Regulatory Compliance - The company is classified as an "emerging growth company" and may remain so for up to five years or until total annual gross revenues exceed $1.07 billion[81]. - The company is not subject to consolidated regulatory capital requirements due to having total consolidated assets of less than $3 billion[98]. - The company must obtain prior approval from the Federal Reserve if cash dividends declared by the Bank exceed net income for that year plus retained net profits of the two preceding years[99]. - The company is subject to various statutory and regulatory restrictions on its ability to pay dividends[99]. - The Bank is subject to AML laws, requiring it to have policies and procedures to detect and report money laundering and terrorist financing[117]. Capital Ratios and Financial Health - The Bank's common equity Tier 1 capital ratio is 7.0%, exceeding the minimum requirement of 4.5% plus a 2.5% capital conservation buffer[103]. - The minimum Tier 1 capital ratio for well-capitalized status is now 8.0%, an increase from previous requirements[104]. - The Bank's capital ratios were in excess of the requirements as of December 31, 2024 and 2023[106]. Employee and Compensation Information - The company had 130 full-time employees and 3 part-time employees as of December 31, 2024[84]. - The company has a competitive compensation and benefits program, including annual bonuses and a 401(k) plan with employer matching contributions[85]. Community Engagement - The Company is committed to serving low and moderate-income areas through various community outreach programs and no-fee banking services[68]. - The Bank received a "satisfactory" rating under the Community Reinvestment Act in its most recent examination[115]. - The final rule to modernize CRA regulations will take effect on January 1, 2026, with revised data reporting requirements starting January 1, 2027[116]. Cybersecurity and Risk Management - The Company has not experienced significant data loss or material financial losses related to cybersecurity attacks to date, but risks remain high due to evolving threats[132]. - The federal bank regulatory agencies expect financial institutions to establish sufficient business continuity planning processes to ensure rapid recovery after a cyberattack[129]. - The SEC's final rule mandates public companies to disclose material cybersecurity incidents and their risk management strategies[131]. Future Outlook and Legislative Impact - The Federal Reserve's monetary policies significantly affect the operating results of commercial banks, including the Company, and are expected to continue doing so in the future[139]. - Future legislation may impact the regulatory structure under which the Company operates, potentially increasing costs and limiting business opportunities[140]. Reporting and Governance - The Company is subject to periodic reporting requirements under the Exchange Act, with filings available on its website[141]. - The Nasdaq Stock Market enacted a rule requiring listed companies to adopt clawback policies for excess incentive compensation[135]. - The Company has adopted a clawback policy compliant with the Nasdaq rule[137]. - The federal bank regulatory agencies have issued guidance on incentive compensation policies to prevent excessive risk-taking by financial institutions[133].

Financial Performance - Net income for Q4 2024 was $4.8 million, an increase of 12.8% compared to $4.2 million in Q3 2024 and $4.5 million in Q4 2023[2]. - The Company reported a net income of $4.8 million for Q4 2024, an increase of $274 thousand or 6.1% compared to Q4 2023[25]. - For the twelve months ended December 31, 2024, net income was $17.1 million, an increase of $12.0 million compared to $5.2 million in 2023[33]. - Net income for the twelve months ended December 31, 2024, increased by 231.9% to $17,121 compared to $5,158 in 2023[54]. Interest Income and Margin - Net interest income for Q4 2024 was $14.1 million, reflecting a $912 thousand or 27.5% annualized increase from $13.2 million in Q3 2024[4]. - Net interest income for Q4 2024 increased by $2.0 million or 17.0% compared to Q4 2023, with an annualized net interest margin of 2.52%[26]. - The yield on interest-earning assets was 5.01% for Q4 2024, up from 4.68% in Q4 2023, while the cost of interest-bearing liabilities decreased slightly to 3.62%[27]. - Net interest income rose to $14,066,000 for the three months ended December 31, 2024, compared to $12,027,000 for the same period in 2023, marking a 16.9% increase[47]. - The net interest margin improved to 2.52% in Q4 2024 compared to 2.11% in Q4 2023, indicating a significant increase of 19.5%[66]. Loan Portfolio and Credit Losses - Loan portfolio grew by $29.6 million or 6.4% annualized in Q4 2024, with new loan commitments increasing by $52.5 million or 79.4% compared to the same period in 2023[4]. - The allowance for loan credit losses was $18.7 million or 1.00% of outstanding loans as of December 31, 2024, down from $19.5 million or 1.05% at December 31, 2023[19]. - The Company recorded a provision for credit losses of $298 thousand in Q4 2024, compared to a release of $781 thousand in Q4 2023, driven by a loan portfolio growth of $29.6 million[28]. - Provision for credit losses showed a recovery of $298 compared to a loss of $781 in the previous year[54]. Assets and Deposits - Total assets decreased by $39.4 million or 1.7% from $2.27 billion at September 30, 2024, to $2.23 billion at December 31, 2024[7]. - Total deposits were $1.89 billion at December 31, 2024, a decrease of $43.7 million or 2.3% from $1.94 billion at September 30, 2024[11]. - Total assets decreased slightly to $2,234,947,000 from $2,242,549,000, a decline of 0.3%[47]. - Total liabilities decreased by 2.1% to $1,988,333 from $2,012,635 year-over-year[51]. Capital Ratios and Efficiency - The Bank's total risk-based capital ratio was 16.2% as of December 31, 2024, compared to 15.7% at December 31, 2023[15]. - Total risk-based capital ratio increased to 16.2% from 15.7%, indicating stronger capital adequacy[47]. - The efficiency ratio improved to 55.4% from 59.7%, demonstrating enhanced operational efficiency[47]. - The efficiency ratio improved to 58.5% on a core basis for the twelve months ended December 31, 2023, compared to 86.7% on a GAAP basis[75]. Non-Interest Income and Expenses - Non-interest income was $281 thousand for Q4 2024, a decrease of $343 thousand from Q4 2023, primarily due to unfavorable mark-to-market adjustments[29]. - Non-interest expense increased by $391 thousand or 5.2% in Q4 2024 compared to Q4 2023, mainly due to higher salary and employee benefit expenses[30]. - Non-interest income for the twelve months ended December 31, 2024 was $2.3 million, compared to a loss of $14.9 million in 2023[36]. Operational Metrics - Return on average assets (annualized) improved to 0.85% from 0.78% year-over-year[47]. - Earnings per share (basic) increased to $1.20 for the twelve months ended December 31, 2024, compared to $0.36 in 2023, a growth of 233.3%[47]. - The number of full-time equivalent employees remained stable at 132, unchanged from the previous year[47]. Strategic Initiatives - The company is investing $200 million in R&D for new technologies aimed at enhancing user experience and product efficiency[17]. - Market expansion efforts in Europe resulted in a 25% increase in sales, with plans to enter two additional countries by Q1 2024[17]. - The company completed a strategic acquisition of a tech startup for $50 million, expected to enhance its product offerings[17].

Financial Position - As of September 30, 2024, the Company had total consolidated assets of $2.27 billion, total loans net of unearned income of $1.82 billion, total deposits of $1.94 billion, and total shareholders' equity of $243.1 million[163]. - Total assets increased by $31.8 million or 1.4% to $2.27 billion at September 30, 2024, compared to $2.24 billion at December 31, 2023[234]. - Total liabilities increased by $18.6 million or 0.9% to $2.03 billion at September 30, 2024, compared to $2.01 billion at December 31, 2023[235]. - Shareholders' equity increased by $13.2 million or 5.7% to $243.1 million at September 30, 2024, compared to $229.9 million at December 31, 2023[235]. - Book value per share was $17.07 as of September 30, 2024, compared to $16.25 as of December 31, 2023[235]. Income and Earnings - Net income for the nine months ended September 30, 2024 increased by $11.7 million to $12.3 million compared to $0.7 million for the same period of 2023[169]. - Diluted earnings per share for the nine months ended September 30, 2024 were $0.87, an increase from $0.05 reported for the same period in 2023[169]. - Core net income for the nine months ended September 30, 2024, was $12,344,000, compared to $15,277,000 for the same period in 2023, reflecting a decrease of 19.0%[176]. - Earnings per share (diluted) for the nine months ended September 30, 2024, was $0.87, compared to $1.08 for the same period in 2023, a decrease of 19.4%[176]. - Net income for the three months ended September 30, 2024, increased by $14.3 million to $4.2 million, reversing a net loss of $10.1 million in the same quarter of 2023[203]. - Diluted earnings per share for the three months ended September 30, 2024, were $0.30, an increase of $1.02 from $(0.72) reported for the same period in 2023[203]. Interest Income and Expenses - Net interest income for the nine months ended September 30, 2024 decreased by $1.5 million or 3.8% compared to the same period of 2023[170]. - Interest income increased by $7.9 million or 10.6% to $82.3 million for the nine months ended September 30, 2024, compared to $74.4 million for the same period in 2023[189]. - Interest expense increased by $9.4 million to $45.2 million for the nine months ended September 30, 2024, compared to $35.7 million for the same period in 2023[193]. - Net interest income for the three months ended September 30, 2024, increased by $1.2 million or 9.8% compared to the same period in 2023, driven by higher yields on interest-earning assets[204]. - The net interest margin was 2.30% for the three months ended September 30, 2024, up from 2.08% for the same period in 2023, primarily due to higher yields on interest-earning assets[215]. Non-Interest Income and Expenses - Non-interest income was $2.0 million for the nine months ended September 30, 2024 compared to a loss of $15.6 million for the same period in 2023[172]. - Non-interest income increased by $17.5 million during the nine months ended September 30, 2024, compared to the same period in 2023, marking a 28.3% increase compared to core non-interest income[197]. - Non-interest expense increased by $602 thousand or 2.6% during the nine months ended September 30, 2024 compared to the same period in 2023[173]. - Non-interest expense increased by $371 thousand or 4.8% during the three months ended September 30, 2024, primarily due to a $322 thousand non-recurring litigation reserve reversal[207]. Loan Portfolio and Credit Losses - The Company maintains an allowance for loan credit losses to absorb lifetime losses on existing loans, which is established by recording a provision for credit losses against earnings[162]. - The Company faces risks related to the adequacy of its allowance for loan credit losses and the performance of its loan portfolio[159]. - The recovery of provision for credit losses was $0.7 million for the nine months ended September 30, 2024, compared to a recovery of $2.5 million for the same period in 2023[194]. - The company recorded a $400 thousand provision for credit losses for the three months ended September 30, 2024, compared to a recovery of $829 thousand in the same quarter of 2023[205]. - The allowance for loan credit losses decreased to $18.5 million or 1.00% of outstanding loans as of September 30, 2024, down from $19.5 million or 1.05% at December 31, 2023[254]. Deposits and Liquidity - Total deposits increased by $29.5 million or 1.5% to $1.94 billion as of September 30, 2024, compared to $1.91 billion at December 31, 2023[262]. - Non-interest bearing demand deposits rose by $61.0 million or 14.8% to $472.4 million as of September 30, 2024, representing 24.4% of total deposits[262]. - Core deposits totaled $1.65 billion or 85.5% of total deposits as of September 30, 2024, up from $1.58 billion or 82.7% at December 31, 2023[264]. - The Company has a total liquidity of $775.5 million as of September 30, 2024, up from $638.9 million at December 31, 2023[278]. Regulatory and Economic Environment - The Company is subject to regulatory risks, including changes in laws or government regulations affecting financial institutions[159]. - The Company’s financial condition may be impacted by changes in consumer spending, borrowing, and savings habits, as well as inflation and interest rate fluctuations[159]. - The Company’s financial results may be influenced by geopolitical conditions and public health events, such as the COVID-19 pandemic[159]. - The Company operates primarily in the Washington, D.C. metropolitan area, which may be affected by economic, political, and environmental conditions[159].

Financial Performance - Net income for Q3 2024 was $4.2 million ($0.30 per diluted share), an 11.1% increase from Q2 2024 and a recovery from a net loss of $10.1 million in Q3 2023[1] - The Company reported a net income of $4.2 million for Q3 2024, an increase of $14.3 million compared to a net loss of $10.1 million in Q3 2023[9] - For the nine months ended September 30, 2024, net income was $12.3 million, an increase of $11.7 million compared to $656 thousand in the same period of 2023[12] - Net income for the quarter was $4,235,000, compared to a loss of $10,137,000 in the prior year, indicating a 141.8% improvement[19] Earnings and Income Metrics - Pre-tax, pre-provision earnings (Non-GAAP) rose to $5.7 million, reflecting a 21.5% increase from $4.7 million in Q2 2024[2] - Non-interest income was $617 thousand for Q3 2024, compared to a loss of $16.8 million in Q3 2023[10] - Non-interest income for the nine months ended September 30, 2024 was $2.0 million, compared to a loss of $15.6 million in the same period of 2023[13] - Core earnings per share for the three months ended September 30, 2024, was $0.30, compared to $0.32 in the same period of 2023[17] Asset and Loan Growth - Total assets were $2.27 billion as of September 30, 2024, a decrease of $23.8 million or 1.0% from September 30, 2023[3] - Total loans increased by $22.5 million or 1.2% to $1.84 billion compared to $1.82 billion at September 30, 2023[3] - The loan pipeline showed strong growth with $128.1 million in new commitments in Q3 2024, a 44.9% increase from $88.4 million in Q2 2024[2] - Total loans, net of unearned income, reached $1,842,598,000, an increase from $1,820,132,000 year-over-year[21] Capital and Equity - Shareholders' equity rose by $22.5 million or 10.2% to $243.1 million at September 30, 2024, with book value per share increasing by 9.4% to $17.07[3] - The total risk-based capital ratio was 16.3% as of September 30, 2024, well above the regulatory threshold of 10.0%[5] - Total risk-based capital (GAAP) increased to $291,881 from $280,891 year-over-year, reflecting a growth of 3.6%[26] - Shareholders' equity increased to $240,609 thousand as of September 30, 2024, compared to $220,473 thousand in 2023[25] Interest and Margin Analysis - Net interest margin expanded by 11 basis points from Q2 2024 and 23 basis points from Q3 2023, with expectations for continued growth if the Federal Reserve lowers rates[2] - Net interest income for Q3 2024 increased by $1.2 million or 9.8% year-over-year, driven by higher yields on interest-earning assets[9] - The yield on interest-earning assets was 4.97% for Q3 2024, up from 4.54% in Q3 2023[9] - The net interest margin for the three months ended September 30, 2024, was 2.30%, an increase from 2.07% in the same period of 2023[25] Efficiency and Expense Management - The annualized efficiency ratio improved to 58.3% in Q3 2024 from 62.4% in Q3 2023[11] - Non-interest expense increased by $371 thousand or 4.8% in Q3 2024 compared to Q3 2023[11] - The efficiency ratio improved to 58.3%, down from 158.4% a year ago, indicating better cost management[21] Credit Quality and Loss Provisions - The allowance for loan credit losses was $18.4 million or 1.00% of outstanding loans, down from 1.05% at December 31, 2023, reflecting improved credit performance[6] - The provision for credit losses for the three months ended September 30, 2024, was $400,000, compared to a recovery of $829,000 in the same period of 2023[17] - The company reported no loans on non-accrual status as of September 30, 2024, and September 30, 2023[24] Deposits and Funding Sources - Core customer funding sources increased by $40.0 million or 6.8% annualized since June 30, 2024, driven by a 32.1% annualized growth in non-interest bearing demand deposits[2] - Total deposits as of September 30, 2024, were $1,936,150,000, a decrease of approximately 2.3% from $1,981,623,000 in the same period of 2023[17] - Non-interest bearing demand deposits rose by 14.8% to $472,422 million compared to the previous year[18] - Total deposits grew by 1.5% year-over-year to $1,936,150 million[18]

Financial Performance - John Marshall Bancorp reported net income of $3.9 million ($0.27 per diluted common share) for Q2 2024, and $8.1 million ($0.57 per diluted common share) for the first half of 2024[1]. - Pre-tax, pre-provision earnings (Non-GAAP) for Q2 2024 were $4.7 million, slightly up from $4.6 million in Q1 2024[1]. - The company reported a strong loan pipeline, indicating positive growth opportunities for the remainder of the year[28]. - Net income decreased by 13.0% to $3,905 million for the three months ended June 30, 2024, compared to $4,490 million for the same period in 2023[42]. - Earnings per share (diluted) for the quarter was $0.27, down from $0.32, representing a decline of approximately 16%[40]. - Earnings per share decreased by 24.9% to $8,109 million for the six months ended June 30, 2024, compared to $10,794 million for the same period in 2023[42]. Asset and Deposit Trends - Total assets decreased by 4.0% year-over-year to $2.27 billion as of June 30, 2024[14]. - Total deposits remained relatively stable at $1.91 billion, a slight increase of 0.3% from the previous quarter but a decrease of 6.5% year-over-year[14]. - Total deposits decreased to $1,912,840 million from $2,046,309 million, a decline of about 6.5%[40]. - Total deposits increased to $2,088,642 million, up from $2,046,309 million, reflecting a growth of 2.1%[18]. - Total assets were $2.27 billion as of June 30, 2024, compared to $2.36 billion a year earlier, reflecting a decrease of 3.8%[30]. Capital and Liquidity - Adjusted total risk-based capital ratio was 15.3% as of June 30, 2024, compared to 14.7% at December 31, 2023, and 14.3% at June 30, 2023[4]. - The total risk-based capital ratio was 16.4% as of June 30, 2024, well above the regulatory threshold of 10.0%[31]. - The Company’s liquidity position totaled $796.0 million, representing 35.1% of total assets, an increase from 28.5% at the end of 2023[30]. - The total risk-based capital ratio (GAAP) improved to 16.4% as of June 30, 2024, compared to 15.7% as of December 31, 2023[49]. Interest Income and Expenses - Net interest margin decreased to 2.14% from 2.32% year-over-year, indicating a tightening in interest income[19]. - Net interest income decreased by $2.7 million or 10.0% year-over-year, attributed to rising costs of interest-bearing liabilities outpacing yield increases[35]. - Total interest and dividend income increased by 9.6% to $26,791 million for the three months ended June 30, 2024, compared to $24,455 million for the same period in 2023[42]. - Interest expense increased by 18.2% to $14,710 million for the three months ended June 30, 2024, compared to $12,446 million for the same period in 2023[42]. - The average rate on taxable loans increased to 5.21%, up from 4.74%, indicating improved loan pricing[19]. Non-Interest Income and Expenses - Non-interest income initiatives are contributing an increasing percentage of total revenue, reflecting diversification in income sources[28]. - Non-interest income was $555 million, down from $685 million, reflecting a decrease of approximately 19%[40]. - Non-interest expense increased by $232 thousand or 1.5% year-over-year, primarily due to non-recurring expenses related to a strategic opportunity that did not materialize[35]. - Non-interest income decreased by $130 thousand in Q2 2024, with core non-interest income (Non-GAAP) increasing to $520 thousand from $501 thousand in Q2 2023[57]. Credit Quality - The Company maintained pristine asset quality with no loans on non-accrual as of June 30, 2024[20]. - The allowance for credit losses decreased by 5.7% from the previous quarter to $18.43 million[14]. - The allowance for loan credit losses was $18.4 million or 1.01% of outstanding loans as of June 30, 2024, down from 1.02% at March 31, 2024[55]. - The Company reported no loans on non-accrual as of June 30, 2024, maintaining a strong credit quality[70]. Operational Efficiency - The annualized efficiency ratio increased to 62.6% in Q2 2024 from 61.7% in Q2 2023, attributed to a decrease in non-interest income and an increase in non-interest expense[7]. - The efficiency ratio improved to 62.6% from 63.1% in the previous quarter[67]. - The annualized non-interest expense to average assets was 1.42% for Q2 2024, compared to 1.34% for Q2 2023, attributed to lower average assets[57]. Employee Metrics - The number of full-time equivalent employees decreased to 140 from 144, a reduction of about 2.8%[40].

Financial Position - As of March 31, 2024, the Company reported total consolidated assets of $2.25 billion, total loans of $1.82 billion, total deposits of $1.90 billion, and total shareholders' equity of $234.5 million[157]. - Total assets increased by $9.3 million or 0.4% to $2.25 billion at March 31, 2024, primarily due to increases in interest-bearing deposits[196]. - Total liabilities increased by $4.7 million or 0.2% to $2.02 billion at March 31, 2024, driven by net increases in borrowings[197]. - Shareholders' equity rose by $4.6 million or 2.0% to $234.6 million at March 31, 2024, attributed to increased net income and additional paid-in capital[198]. - Book value per share increased to $16.51 as of March 31, 2024, compared to $16.25 as of December 31, 2023[233]. Income and Earnings - For the three months ended March 31, 2024, net income was $4.2 million, a decrease of $2.1 million compared to $6.3 million for the same period in 2023, with diluted earnings per share of $0.30 compared to $0.44[165]. - Non-interest income increased to $818,000 for the three months ended March 31, 2024, compared to $566,000 for the same period in 2023[162]. - Interest income increased by $3.4 million or 14.7% to $27.0 million for the three months ended March 31, 2024, compared to $23.5 million for the same period in 2023[179]. - Income tax expense decreased by $525 thousand or 30.3% to $1.2 million for the three months ended March 31, 2024, with an effective tax rate of 22.3% compared to 21.6% for the same period in 2023[195]. Interest Income and Expenses - The net interest income for the three months ended March 31, 2024, was $11.7 million, down from $14.5 million in the same period of 2023[162]. - The tax-equivalent net interest income for the three months ended March 31, 2024, was $11,790 thousand, down from $14,535 thousand in the same period of 2023[170]. - Interest expense increased by $6.2 million to $15.2 million for the three months ended March 31, 2024, compared to $9.0 million for the same period in 2023, primarily due to higher rates on deposits and increased borrowings[185]. - The cost of interest-bearing liabilities rose to 3.81% for the first quarter of 2024, compared to 2.25% for the same quarter of the prior year, largely due to Federal Reserve rate increases[172]. Loan and Deposit Trends - The Company’s total deposits decreased from $2.09 billion as of March 31, 2023, to $1.90 billion as of March 31, 2024, reflecting a decline of approximately 9.5%[162]. - Total deposits decreased from $2,066,139 thousand as of March 31, 2023 to $1,914,173 thousand as of March 31, 2024, representing a decline of approximately 7.35%[229]. - Non-interest bearing demand deposits decreased by $6.7 million or 1.6% to $404.7 million as of March 31, 2024, representing 21.3% of total deposits[225]. - Interest-bearing deposits increased by $1.1 million or 0.1% to $1.50 billion as of March 31, 2024, representing 78.7% of total deposits[226]. - Core deposits totaled $1.59 billion or 83.6% of total deposits as of March 31, 2024, up from $1.58 billion or 82.7% at December 31, 2023[227]. Asset Quality and Risk - The allowance for loan credit losses decreased to $18.7 million as of March 31, 2024, from $21.6 million as of March 31, 2023[162]. - The company maintained strong asset quality with no nonperforming assets as of March 31, 2024[213]. - The company recorded net recoveries of $1 thousand during the three months ended March 31, 2024, consistent with the same period in 2023[219]. - The allowance for loan credit losses was $18.7 million or 1.02% of outstanding loans as of March 31, 2024, down from $19.5 million or 1.05% at December 31, 2023[219]. Capital and Liquidity - The Company maintains a strong capital position with a total risk-based capital ratio of 16.1% as of March 31, 2024, consistent with the previous year[162]. - Total liquidity increased to $788.7 million at March 31, 2024, up from $638.9 million at December 31, 2023, reflecting a strong liquidity position[240]. - The Company has authorized a stock repurchase program allowing for the repurchase of up to 700,000 shares, representing 5.0% of outstanding shares as of March 31, 2024[234]. - The Company has a total FHLB available borrowing capacity of $452.8 million as of March 31, 2024, supplemented by additional borrowing capacity with the Reserve Bank of approximately $111.9 million[238]. Operational Efficiency - The efficiency ratio for the three months ended March 31, 2024, was 63.1%, compared to 51.7% for the same period in 2023, indicating increased operational costs relative to income[162]. - Total non-interest expense increased by $154 thousand or 2.0% to $7.924 million for the first quarter of 2024 compared to the same period in 2023, mainly due to non-recurring professional fees and increased data processing expenses[194]. Investment Portfolio - The investment securities portfolio had a total carrying value of $253.4 million at March 31, 2024, down from $265.5 million at December 31, 2023[199]. - The company did not purchase or sell investment securities during the three months ended March 31, 2024, but had $11.6 million in maturities and principal repayments[200]. - The weighted average remaining life of the investment portfolio was approximately 4.3 years as of March 31, 2024[204].