Financial Position - As of September 30, 2022, the Company had total consolidated assets of $2.31 billion, total loans net of unearned income of $1.73 billion, total deposits of $2.06 billion, and total shareholders' equity of $202.2 million[155]. - Total assets were $2.31 billion at September 30, 2022, up from $2.15 billion at December 31, 2021, reflecting a growth of $156.2 million or 7.3%[237]. - Total liabilities increased by $162.5 million or 8.4% to $2.10 billion at September 30, 2022, primarily due to a rise in total deposits[238]. - Total shareholders' equity decreased by $6.3 million or 3.0% to $202.2 million at September 30, 2022, mainly due to an increase in net unrealized losses on the investment portfolio[240]. - The Company had estimated total uninsured deposits of $1.15 billion as of September 30, 2022, up from $1.01 billion as of December 31, 2021[276]. - Liquid assets totaled $380.7 million as of September 30, 2022, representing 16.5% of total assets, compared to $299.3 million or 16.8% of total assets at December 31, 2021[288]. Income and Earnings - Net income for the nine months ended September 30, 2022 increased by $5.7 million or 31.7% to $23.6 million compared to $17.9 million for the same period in 2021[166]. - Diluted earnings per share increased by $0.38 or 29.5% to $1.67 for the nine months ended September 30, 2022, compared to $1.29 for the same period in 2021[166]. - Net income increased by $1.2 million or 19.0% to $8.0 million for the three months ended September 30, 2022, compared to $6.8 million for the same period in 2021[205]. - Non-interest income increased by $125 thousand or 38.5% during the third quarter of 2022 compared to the third quarter of 2021, primarily due to a $153 thousand increase in bank owned life insurance income[208]. Interest Income and Expenses - Net interest income for the nine months ended September 30, 2022 increased by $4.0 million or 8.1% compared to the same period in 2021, driven primarily by growth in the loan and investment portfolios[167]. - Interest income rose by $5.1 million or 9.2% to $60.7 million on a fully tax-equivalent basis for the nine months ended September 30, 2022, driven by an increase in volume of interest-earning assets[188]. - Interest expense increased by $1.1 million or 17.2% to $7.6 million for the nine months ended September 30, 2022, primarily due to higher rates and volumes on interest-bearing deposits[191]. - The overall cost of interest-bearing deposits rose to 0.55% for the nine months ended September 30, 2022, compared to 0.53% for the same period in 2021[192]. - Interest expense increased by $1.6 million to $3.5 million for the three months ended September 30, 2022, primarily due to an increase in rates[229]. Loan Performance - The allowance for loan losses was $20.0 million as of September 30, 2022, representing 1.16% of total gross loans net of unearned income[195]. - The Company did not record a provision for loan losses for the nine months ended September 30, 2022, compared to a $2.8 million provision for the same period in 2021[168]. - The Company did not record a provision for loan losses for Q3 2022, compared to $325 thousand for Q3 2021, reflecting decreased uncertainty regarding the impact of the COVID-19 pandemic on the loan portfolio[230]. - The Company recorded no net charge-offs during the nine months ended September 30, 2022, compared to $91 thousand for the same period in 2021[262]. - Gross loans increased by $58.6 million or 3.5% to $1.73 billion as of September 30, 2022, with a significant increase of $129.0 million or 8.1% excluding PPP loans[248]. Risk Factors - The Company faces risks including economic conditions, competition, and changes in consumer behavior that could impact financial performance[150]. - The Company is concentrated in the Washington, D.C. metropolitan area, making it sensitive to local economic and political changes[150]. - The Company’s financial condition may be affected by inflation and changes in interest rates, which could reduce margins[150]. - The Company’s ability to capitalize on growth opportunities is subject to various risks, including regulatory changes and market competition[150]. Capital and Liquidity - The total risk-based capital ratio increased to 15.4% as of September 30, 2022, compared to 15.2% as of September 30, 2021[1]. - The Company maintains a strong liquidity position, with management conducting quarterly liquidity stress testing[290]. - The Company has a total FHLB available borrowing capacity of $374.6 million as of September 30, 2022[289]. - The Company plans to adopt the CECL model effective January 1, 2023, which is expected to increase the allowance for credit losses[281]. Deposits - Total deposits increased by $181.8 million or 9.7% to $2.06 billion as of September 30, 2022, compared to $1.88 billion as of December 31, 2021[270]. - Non-interest bearing demand deposits rose by $46.4 million or 9.5% to $535.2 million as of September 30, 2022, accounting for 25.9% of total deposits[270]. - Core deposits totaled $1.76 billion or 85.2% of total deposits as of September 30, 2022, compared to $1.64 billion or 86.3% of total deposits as of December 31, 2021[272].

[Part I Financial Information](index=3&type=section&id=Part%20I%20Financial%20Information) [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The company's unaudited consolidated financial statements and accompanying notes for the periods ended June 30, 2022 [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) Financial Position as of June 30, 2022 | Metric | June 30, 2022 (in thousands) | December 31, 2021 (in thousands) | | :--- | :--- | :--- | | **Total Assets** | **$2,316,374** | **$2,149,309** | | Net Loans | $1,672,621 | $1,646,437 | | Total Deposits | $2,043,741 | $1,881,553 | | **Total Liabilities** | **$2,108,844** | **$1,940,839** | | **Total Shareholders' Equity** | **$207,530** | **$208,470** | - Total assets grew to **$2.32 billion** at June 30, 2022, from $2.15 billion at December 31, 2021, primarily driven by increases in securities available-for-sale and net loans[8](index=8&type=chunk) - Total shareholders' equity slightly decreased to **$207.5 million** from $208.5 million, mainly due to a significant increase in accumulated other comprehensive loss to **$(16.9) million**[8](index=8&type=chunk) [Consolidated Statements of Income](index=4&type=section&id=Consolidated%20Statements%20of%20Income) Income Performance for the Three and Six Months Ended June 30, 2022 | Metric (in thousands, except EPS) | Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :--- | :--- | :--- | :--- | :--- | | Net Interest Income | $17,308 | $16,491 | $35,224 | $32,773 | | Provision for Loan Losses | $0 | $90 | $0 | $2,455 | | **Net Income** | **$7,882** | **$6,079** | **$15,556** | **$11,153** | | **Earnings Per Share, Diluted** | **$0.56** | **$0.44** | **$1.10** | **$0.80** | - Net income for the six months ended June 30, 2022, increased by **39.5%** year-over-year to **$15.6 million**, driven by higher net interest income and a zero provision for loan losses[10](index=10&type=chunk) [Consolidated Statements of Comprehensive Income (Loss)](index=5&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) - For the six months ended June 30, 2022, the company reported a total comprehensive loss of **$(972) thousand**, a significant shift from a comprehensive income of $8.7 million in 2021, primarily due to a **$(16.5) million** other comprehensive loss from unrealized losses on available-for-sale securities[12](index=12&type=chunk) [Consolidated Statements of Shareholders' Equity](index=6&type=section&id=Consolidated%20Statements%20of%20Shareholders'%20Equity) - Shareholders' equity decreased from $208.5 million at year-end 2021 to **$207.5 million** at June 30, 2022, driven by a **$(16.5) million** other comprehensive loss and a $2.8 million dividend declaration, which were largely offset by **$15.6 million** in net income[18](index=18&type=chunk) [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Cash Flow Summary for the Six Months Ended June 30 | Cash Flow Activity (in thousands) | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $16,587 | $14,075 | | Net Cash Used in Investing Activities | $(170,046) | $(155,617) | | Net Cash Provided by Financing Activities | $168,547 | $171,089 | | **Net Increase in Cash and Cash Equivalents** | **$15,088** | **$29,547** | - Investing activities primarily consisted of a net increase in loans of **$(26.2) million** and the purchase of **$(173.4) million** in available-for-sale securities, while financing activities were driven by a **$162.2 million** net increase in deposits[21](index=21&type=chunk) [Notes to Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) - The company plans to adopt the **Current Expected Credit Losses (CECL)** standard for fiscal years beginning after December 15, 2022, and is currently assessing its impact[30](index=30&type=chunk) - The company's loan portfolio is primarily composed of real estate loans, with Commercial Real Estate loans making up the largest segment at **$1.08 billion** as of June 30, 2022[51](index=51&type=chunk) - The Bank is categorized as **"well capitalized"** under the regulatory framework, with all capital ratios exceeding the minimum requirements as of June 30, 2022[132](index=132&type=chunk)[133](index=133&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=32&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management analyzes financial condition and results of operations for the periods ended June 30, 2022, highlighting key performance drivers [Results of Operations – Six Months Ended June 30, 2022 and June 30, 2021](index=44&type=section&id=Results%20of%20Operations%20%E2%80%93%20Six%20Months%20Ended%20June%2030,%202022%20and%20June%2030,%202021) Six-Month Performance Comparison | Metric | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | Change | | :--- | :--- | :--- | :--- | | Net Income | $15.6 million | $11.2 million | +39.5% | | Diluted EPS | $1.10 | $0.80 | +37.5% | | Net Interest Income | $35.2 million | $32.8 million | +7.5% | | Provision for Loan Losses | $0 | $2.5 million | -100% | | ROAA | 1.41% | 1.13% | +28 bps | | ROAE | 15.02% | 11.78% | +324 bps | - The absence of a provision for loan losses in the first half of 2022, compared to a **$2.5 million** provision in 2021, was a primary driver of increased net income[169](index=169&type=chunk) - Non-interest income decreased by **40.6%** due to a **$(490) thousand** mark-to-market adjustment on investments related to a nonqualified deferred compensation plan[170](index=170&type=chunk) [Results of Operations – Three Months Ended June 30, 2022 and June 30, 2021](index=55&type=section&id=Results%20of%20Operations%20%E2%80%93%20Three%20Months%20Ended%20June%2030,%202022%20and%20June%2030,%202021) Three-Month Performance Comparison | Metric | Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | Change | | :--- | :--- | :--- | :--- | | Net Income | $7.9 million | $6.1 million | +29.7% | | Diluted EPS | $0.56 | $0.44 | +27.3% | | Net Interest Income | $17.3 million | $16.5 million | +5.0% | | Non-interest Expense | $7.7 million | $9.1 million | -15.3% | - The significant **15.3%** decrease in non-interest expense was primarily driven by a **$1.0 million (18.0%)** reduction in salaries and employee benefits[216](index=216&type=chunk)[243](index=243&type=chunk) [Discussion and Analysis of Financial Condition](index=62&type=section&id=Discussion%20and%20Analysis%20of%20Financial%20Condition) - Total assets increased by **7.8%** to **$2.32 billion** at June 30, 2022, from year-end 2021, driven by a $122.6 million increase in the investment portfolio and a $26.2 million increase in net loans[246](index=246&type=chunk) - Asset quality remained strong, with **zero nonperforming assets** as of June 30, 2022, and December 31, 2021[262](index=262&type=chunk)[264](index=264&type=chunk) - Total deposits grew by **8.6%** to **$2.04 billion**, providing the primary funding for asset growth, with core deposits representing **85.1%** of total deposits[279](index=279&type=chunk)[281](index=281&type=chunk) - The company maintains a strong liquidity position with liquid assets of **$422.5 million (18.2% of total assets)** and significant available borrowing capacity[297](index=297&type=chunk)[298](index=298&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=56&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) Disclosure is not required as the company qualifies as a smaller reporting company - Disclosure is not required for smaller reporting companies[301](index=301&type=chunk) [Controls and Procedures](index=57&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective with no material changes to internal controls - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were **effective** as of June 30, 2022[302](index=302&type=chunk) - **No material changes** occurred in the company's internal control over financial reporting during the second quarter of 2022[303](index=303&type=chunk) [Part II Other Information](index=58&type=section&id=Part%20II%20Other%20Information) [Legal Proceedings](index=58&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently involved in any material legal proceedings - The company is not currently party to any **material legal proceedings**[306](index=306&type=chunk) [Risk Factors](index=58&type=section&id=Item%201A.%20Risk%20Factors) No material changes have been identified in the risk factors previously disclosed in the Form 10 registration statement - **No material changes** have occurred in the risk factors disclosed in the company's Form 10 registration statement[307](index=307&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=58&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not conduct any unregistered sales of equity securities during the reporting period - None reported[308](index=308&type=chunk) [Defaults Upon Senior Securities](index=58&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities were reported during the period - None reported[309](index=309&type=chunk) [Mine Safety Disclosures](index=58&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This disclosure requirement is not applicable to the company's operations - Not Applicable[310](index=310&type=chunk) [Other Information](index=58&type=section&id=Item%205.%20Other%20Information) No additional information was reported under this item for the period - None reported[311](index=311&type=chunk) [Exhibits](index=58&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including debt agreements and required certifications

Financial Position - As of March 31, 2022, the Company had total consolidated assets of $2.25 billion, total loans net of unearned income of $1.63 billion, total deposits of $1.98 billion, and total shareholders' equity of $204.9 million[151]. - Total assets increased by $100.3 million or 4.7% to $2.25 billion at March 31, 2022, funded mainly by a $73.3 million increase in interest-bearing deposits[210]. - Total liabilities increased by $103.9 million or 5.4% to $2.04 billion at March 31, 2022, driven by a $101.5 million increase in total deposits[211]. - Total shareholders' equity decreased by $3.6 million or 1.7% to $204.9 million at March 31, 2022, primarily due to an increase in net unrealized losses on the investment portfolio[212]. - Liquid assets totaled $422.5 million as of March 31, 2022, representing 18.8% of total assets, up from $299.3 million or 16.8% of total assets at December 31, 2021[256]. Loan Performance - The Company approved 1,096 PPP loans totaling $229.2 million during the first and second rounds of the PPP spanning the twelve months ended December 31, 2020 and 2021[163]. - The outstanding balance of PPP loans as of March 31, 2022, was $7.6 million, net of deferred fees and costs[163]. - For the three months ended March 31, 2022, the Company did not have any loans in the deferral program[164]. - The allowance for loan losses was $20.0 million as of March 31, 2022, representing 1.23% of total gross loans, net of unearned income[196]. - The Company did not record a provision for loan losses for the three months ended March 31, 2022, compared to $2.4 million for the same period in 2021, indicating a decrease in uncertainty regarding the loan portfolio[170]. Income and Earnings - Net income increased by $2.6 million or 51.2% to $7.7 million for the three months ended March 31, 2022, compared to $5.1 million for the same period in 2021[167]. - Diluted earnings per share rose by $0.18 or 48.6% to $0.55 for the three months ended March 31, 2022, compared to $0.37 for the same period in 2021[168]. - Net interest income increased by $1.6 million to $17.9 million for the three months ended March 31, 2022, reflecting a 10.0% growth compared to $16.3 million for the same period in 2021[169]. - Non-interest income decreased by $50 thousand or 10.8% to $414 thousand for the three months ended March 31, 2022, primarily due to a decrease in mark-to-market adjustments[171]. - Non-interest expense increased by $893 thousand or 11.3% to $8.8 million for the three months ended March 31, 2022, driven by a $1.0 million increase in salaries and employee benefits[172]. Capital and Liquidity - The total risk-based capital ratio at the bank level was 15.4% as of March 31, 2022, compared to 14.6% in the previous year[176]. - The capital conservation buffer requires a minimum common equity Tier 1 ratio of 7.0%, with the Bank exceeding the fully phased-in requirements as of March 31, 2022[249]. - The minimum Tier 1 capital ratio for well-capitalized status is set at 8.0%, with the Bank categorized as well-capitalized under regulatory frameworks as of March 31, 2022[250]. - The Company conducts quarterly liquidity stress testing to prepare for unexpected adverse scenarios[255]. - Management maintains that the Company has a strong liquidity position, although future conditions could negatively impact this[258]. Investment and Securities - The fixed income investment securities portfolio's carrying value increased to $402.3 million at March 31, 2022, from $344.8 million at December 31, 2021[213]. - The investment portfolio had an estimated weighted average remaining life of approximately 5.0 years as of March 31, 2022[216]. - The company purchased $88.2 million of investment securities during the three months ended March 31, 2022, including $57.7 million of mortgage-backed securities[214]. - Average investment securities increased by approximately $196.4 million between the three months ended March 31, 2022, and 2021, funded primarily by PPP loan payoffs and deposit growth[192]. Deposits - Total deposits increased by $101.5 million or 5.4% to $1.98 billion as of March 31, 2022, compared to $1.88 billion at December 31, 2021[240]. - Non-interest bearing demand deposits rose by $7.0 million or 1.4% to $495.8 million, accounting for 25.0% of total deposits as of March 31, 2022[240]. - Interest-bearing deposits increased by $94.6 million or 6.8% to $1.49 billion, representing 75.0% of total deposits as of March 31, 2022[241]. - Core deposits totaled $1.74 billion, making up 87.9% of total deposits as of March 31, 2022, compared to 87.1% at December 31, 2021[242]. Risk and Uncertainty - The Company’s financial performance is highly dependent on the business environment in its primary markets and the overall U.S. economy, particularly due to the impacts of the COVID-19 pandemic[161]. - The Company’s ability to predict future results is inherently uncertain and may be affected by various risks, including economic conditions and regulatory changes[145]. - The allowance for loan losses is evaluated regularly and is based on management's review of the collectability of loans, considering historical experience and prevailing economic conditions[155]. - The general component of the allowance for loan losses is based on historical loss experience adjusted for qualitative factors, including trends in delinquencies and economic conditions[156]. - The Company has off-balance sheet arrangements that include commitments to extend credit and standby letters of credit, which may impact liquidity and capital resources[259].

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 ...

| --- | --- | --- | --- | --- | --- | |-------|-------|-------|------------------------------------|----------------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 2021 Virtual KBW Community Banking | | | | | | | | Conference | | | | | | | August 3, 2021 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | John Marshall Bancorp, inc. Forward Looking S ...

July 28 – July 30, 2020 KBW Community Bank Investor Conference Forward Looking Statements This information presented herein 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 John Marshall Bancorp, Inc.'s (the "Company" ) operations and policies and regarding general economic conditions. In some cases, forward-looking statements can be ident ...