Financial Performance - The Company reported net income of $4.2 million for Q1 2024, a decrease of $2.1 million from $6.3 million in Q1 2023[22]. - Net income for the quarter was $4,204,000, a decline of 33.3% compared to $6,304,000 in the same period last year[37]. - Earnings per share (diluted) decreased to $0.30 from $0.44, representing a decline of 31.8%[37]. - The return on average assets (annualized) decreased to 0.75% from 1.10% year-over-year, indicating a decline in profitability[37]. - Income before income taxes decreased by 32.7% to $5,414,000 from $8,039,000 year-over-year[43]. Asset and Loan Performance - The Company reported total assets of $2.25 billion as of March 31, 2024, compared to $2.35 billion a year earlier, reflecting a decrease in total loans by $34.0 million or 1.8% from December 31, 2023[7]. - Total assets decreased by 4.2% year-over-year to $2,251,837,000 as of March 31, 2024[40]. - Total loans, net of unearned income, decreased to $1,825,931 million from $1,859,967 million, a decline of 1.8%[45]. - Total loans as of March 31, 2024, amounted to $1,820,882 million, a decrease of 1.4% from $1,854,984 million as of December 31, 2023[47]. - Commercial real estate loans represented 51.5% of total loans, totaling $938,613 million as of March 31, 2024, compared to 52.1% and $966,936 million as of December 31, 2023[47]. Income and Expense Analysis - Net interest income decreased by $2.7 million or 18.8% year-over-year, primarily due to rising costs of interest-bearing liabilities outpacing yield increases on interest-earning assets[23]. - Net interest income after provision for credit losses was $12,520,000, down from $15,243,000 in the previous year, reflecting a decrease of 17.9%[37]. - Total interest expense surged by 68.9% to $15,175,000, up from $8,984,000 in the previous year[43]. - Non-interest expense rose by $154 thousand or 2.0% year-over-year, influenced by non-recurring expenses of $138 thousand related to a strategic opportunity that did not materialize[28]. - The efficiency ratio increased to 63.1% in Q1 2024 from 51.7% in Q1 2023, primarily due to higher non-interest expenses[30]. Dividend and Shareholder Equity - The Company declared an annual cash dividend of $0.25 per share, representing a 13.6% increase from the previous year and a 25% increase from 2022[4]. - Shareholders' equity increased by 6.2% year-over-year to $234,550,000, up from $220,823,000[40]. Deposits and Funding Sources - Total deposits fell by 9.0% year-over-year to $1,900,990,000, down from $2,088,642,000[40]. - Non-interest bearing demand deposits decreased to $404,669 million, representing 21.3% of total deposits, down from 21.6% in the previous quarter[47]. - Core customer funding sources accounted for 80.4% of total funding sources, totaling $1,589,816 million as of March 31, 2024[47]. Credit Quality and Allowance for Loan Losses - The allowance for loan credit losses was $18.7 million, or 1.02% of outstanding loans, down from 1.05% at the end of 2023[17]. - The allowance for loan credit losses to total loans ratio improved to 1.02% from 1.22% year-over-year[37]. - The allowance for loan credit losses decreased to $18,671 million as of March 31, 2024, from $19,543 million as of December 31, 2023[47]. Interest Margin and Rates - The net interest margin was stable at 2.11% for the first quarter of 2024, maintaining a range of 2.08% to 2.12% over the past four quarters[4]. - The annualized net interest margin for Q1 2024 was 2.11%, down from 2.57% in Q1 2023, largely due to increased costs of interest-bearing deposits[23]. - The yield on interest-earning assets was 4.83% in Q1 2024, up from 4.15% in Q1 2023, while the cost of interest-bearing liabilities rose to 3.81% from 2.25%[23]. Growth and Strategic Initiatives - The Company hired four experienced business development professionals in 2024 to support growth in loans, deposits, and non-interest income[4]. - The Company expects to accelerate SBA loan sale revenue and has a growing pipeline of borrowers evaluating swaps[27].

Loan Portfolio Composition - As of December 31, 2023, the Bank's loan portfolio included approximately 19.4% owner-occupied commercial real estate loans and 37.2% managed investment commercial real estate loans[51]. - Construction and development loans constituted about 9.7% of the Bank's loan portfolio as of December 31, 2023[55]. - Commercial term loans and lines of credit together represented approximately 2.4% of the Bank's loan portfolio as of December 31, 2023[60]. - Bank-originated 1-4 family residential mortgage loans accounted for 7.5% of the loan portfolio as of December 31, 2023[61]. - Purchased adjustable-rate mortgages made up approximately 16.4% of the loan portfolio as of December 31, 2023[62]. - Commercial real estate loans constituted 56.6% of the loan portfolio, with commercial and industrial loans at 2.4% and construction and land loans at 9.7% as of December 31, 2023[164]. - Approximately $1.11 billion, or 59.7%, of the loans in the loan portfolio were first originated during the past three years, indicating a lack of seasoning[173]. - The company's 10 largest borrowing relationships accounted for approximately 9.1% of total loans, with the largest single relationship accounting for about 1.4%[172]. - The company may face higher credit risk due to its focus on lending to small to medium-sized businesses, which are generally more vulnerable to economic downturns[159]. - The company had no non-performing assets as of December 31, 2023, which consist of non-accrual loans and loans 90 days or more past due[158]. - Deterioration in economic conditions could lead to higher levels of nonperforming assets and charge-offs, adversely affecting financial results[156]. - The company’s credit risk is heightened by the concentration of loans in the Washington, D.C. metropolitan area, particularly in real estate-related loans[160]. Risk Management and Compliance - The company adheres to a disciplined and conservative underwriting approach, focusing on maintaining strong asset quality and managing credit risk through well-defined criteria[81]. - The company’s risk management processes are overseen by its board of directors, with senior management responsible for day-to-day risk assessments and reporting[79][80]. - The company has established risk appetite metrics to balance risks necessary for achieving strategic goals while ensuring they remain within defined limits[81]. - The company is subject to supervision and regulation by the Federal Reserve and the Virginia BFI, ensuring compliance with banking laws and regulations[95][96]. - The Bank's compliance with anti-money laundering laws includes implementing policies and controls to detect and report suspicious activities[126]. - The Bank actively checks for transactions involving individuals or organizations on OFAC lists to ensure compliance with U.S. regulations[129]. - The Bank is subject to numerous federal and state consumer protection laws, which mandate compliance to avoid penalties and regulatory approval issues for mergers or acquisitions[130]. - The Consumer Financial Protection Bureau (CFPB) oversees compliance with federal consumer protection laws for institutions with over $10 billion in assets, while the Bank, with total consolidated assets of less than $10 billion, is primarily overseen by the Federal Reserve[131]. - The company is exposed to risks from the financial soundness of other institutions, which could lead to liquidity problems and operational losses[212]. - Regulatory compliance is costly and complex, with potential changes in laws that could adversely affect the company's operations and financial condition[225]. Capital and Financial Condition - The Bank's capital ratios as of December 31, 2023, exceeded the fully phased-in requirements, with a common equity Tier 1 ratio of 7.0%, Tier 1 capital ratio of 8.5%, and total risk-based capital ratio of 10.5%[109]. - The company is not subject to consolidated regulatory capital requirements due to its total consolidated assets being less than $3 billion[103]. - The company may be required to maintain higher levels of capital due to its commercial real estate concentration, which could limit growth and adversely affect financial condition and results of operations[234]. - The company is subject to stringent capital requirements, which could adversely affect operations[229]. - The company must obtain prior approval from the Federal Reserve for cash dividends declared by the Bank that exceed net income for the year plus retained net profits of the two preceding years[104]. - The company is prohibited from making capital distributions if it would become "undercapitalized" after such distributions[105]. - The Bank implemented the CECL model on January 1, 2023, which estimates credit losses over the lifetime of financial assets, with the impact on regulatory capital ratios being not significant[114]. - The company may not be able to raise additional capital on acceptable terms, which could adversely affect business and financial condition[231]. Employee and Operational Information - As of December 31, 2023, the company had 133 full-time employees and 2 part-time employees, with no employees covered by collective bargaining agreements[88]. - The company provides a competitive compensation and benefits program, including annual bonuses, a 401(k) plan with employer matching, and healthcare benefits[89]. - The company maintains internal controls and insurance to mitigate operational risks, but failures in these systems could adversely affect its financial condition[204]. - The company is subject to operational risks, including employee fraud and data processing failures, which could lead to financial losses and regulatory sanctions[203]. - The company relies on third-party information for loan origination poses risks; misrepresentation of data could lead to significant financial losses[205]. - The company faces risks from external vendors that provide essential services; disruptions or failures from these vendors could negatively impact operations[208]. Market and Economic Conditions - The Federal Reserve raised the federal funds target rate to 5.25% to 5.50% by December 31, 2023, marking four increases throughout the year[198]. - The company's operations are influenced by Federal Reserve monetary policies, which significantly affect loan growth, investments, and deposit distributions[147]. - Future legislation may impact the regulatory structure for the Company and the Bank, potentially increasing costs and limiting business opportunities[148]. - The company may face challenges in attracting deposits due to higher interest rates making alternative investments more attractive[200]. - Interest rate shifts could compress net interest margins, adversely affecting net interest income and overall financial performance[195]. - The company has experienced significant unrealized losses in its securities portfolio due to rising market interest rates, impacting book capital[189]. - Liquidity risk is heightened by reliance on a small number of large deposit customers, which could lead to increased funding costs if deposits fluctuate[179]. - Uninsured deposits represented 33.0% of total deposits as of December 31, 2023, increasing liquidity risk during financial distress[187]. Community Engagement and Social Responsibility - The Company is committed to the Community Reinvestment Act, providing no-fee checking accounts and small business loans to support local communities[75]. - The Bank received a "satisfactory" rating in its most recent Community Reinvestment Act examination, which assesses the bank's record in meeting credit needs[124]. - The final rule issued on October 24, 2023, will modernize CRA regulations, with material aspects taking effect January 1, 2026, potentially making it more challenging for the Bank to achieve a satisfactory rating[125]. Cybersecurity and Technology Risks - The company has not experienced significant cybersecurity incidents to date, but risks remain high due to evolving threats and increased technology use[140]. - Cybersecurity threats, including e-fraud and data breaches, present significant risks that could result in reputational damage and financial liabilities[219]. - The federal bank regulatory agencies have established guidelines for cybersecurity standards, expecting financial institutions to maintain robust risk management processes and business continuity plans[137]. - The company must continuously adapt to rapid technological changes in the financial services industry to maintain competitiveness and profitability[191]. - The Nasdaq Stock Market enacted a listing rule in 2023 requiring listed companies to adopt clawback policies for excess incentive compensation, which the Company has complied with[145]. Regulatory Changes and Impact - Changes in accounting standards may materially impact the company's financial statements and reporting practices[237]. - The SEC adopted rules requiring public companies to provide climate-related disclosures, which are expected to increase costs[240]. - The company may face increased compliance costs and operational changes due to climate change-related legislative and regulatory initiatives[238]. - The company relies on third-party vendors for critical functions, and increasing regulatory scrutiny could lead to administrative penalties or fines if oversight is deemed inadequate[232].

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 September 30, 2023 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) (State or other ...

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, 2023 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) (State or other juris ...

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 March 31, 2023 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) (State or other juri ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Table of Contents Commission file number: 001-41315 John Marshall Bancorp, Inc. (Exact Name of Registrant as Specified in its Charter) (State or other jurisdiction of incorporation or organization) Virgini ...

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 September 30, 2022 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) (State or other ...

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, 2022 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) (State or other juris ...

FORM 10-Q (Mark One) Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 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) (State or other juri ...

Raymond James U.S. Bank Conference September 8, 2021 John Marshall Bancorp, inc. Forward Looking Statements In addition to historical information, this presentation may contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 which are based on certain assumptions and describe future plans, strategies and expectations of the Company. These forward-looking statements are generally identified by use of the words "believe," "expect," "intend," "antic ...