John Marshall Bancorp(US:JMSB)2024-11-13 14:00Financial 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].