John Marshall Bancorp(JMSB) - 2024 Q2 - Quarterly Results

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].