John Marshall Bancorp(JMSB) - 2024 Q3 - Quarterly Results

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]