John Marshall Bancorp(JMSB) - 2024 Q4 - Annual Results

Financial Performance - Net income for Q4 2024 was $4.8 million, an increase of 12.8% compared to $4.2 million in Q3 2024 and $4.5 million in Q4 2023[2]. - The Company reported a net income of $4.8 million for Q4 2024, an increase of $274 thousand or 6.1% compared to Q4 2023[25]. - For the twelve months ended December 31, 2024, net income was $17.1 million, an increase of $12.0 million compared to $5.2 million in 2023[33]. - Net income for the twelve months ended December 31, 2024, increased by 231.9% to $17,121 compared to $5,158 in 2023[54]. Interest Income and Margin - Net interest income for Q4 2024 was $14.1 million, reflecting a $912 thousand or 27.5% annualized increase from $13.2 million in Q3 2024[4]. - Net interest income for Q4 2024 increased by $2.0 million or 17.0% compared to Q4 2023, with an annualized net interest margin of 2.52%[26]. - The yield on interest-earning assets was 5.01% for Q4 2024, up from 4.68% in Q4 2023, while the cost of interest-bearing liabilities decreased slightly to 3.62%[27]. - Net interest income rose to $14,066,000 for the three months ended December 31, 2024, compared to $12,027,000 for the same period in 2023, marking a 16.9% increase[47]. - The net interest margin improved to 2.52% in Q4 2024 compared to 2.11% in Q4 2023, indicating a significant increase of 19.5%[66]. Loan Portfolio and Credit Losses - Loan portfolio grew by $29.6 million or 6.4% annualized in Q4 2024, with new loan commitments increasing by $52.5 million or 79.4% compared to the same period in 2023[4]. - The allowance for loan credit losses was $18.7 million or 1.00% of outstanding loans as of December 31, 2024, down from $19.5 million or 1.05% at December 31, 2023[19]. - The Company recorded a provision for credit losses of $298 thousand in Q4 2024, compared to a release of $781 thousand in Q4 2023, driven by a loan portfolio growth of $29.6 million[28]. - Provision for credit losses showed a recovery of $298 compared to a loss of $781 in the previous year[54]. Assets and Deposits - Total assets decreased by $39.4 million or 1.7% from $2.27 billion at September 30, 2024, to $2.23 billion at December 31, 2024[7]. - Total deposits were $1.89 billion at December 31, 2024, a decrease of $43.7 million or 2.3% from $1.94 billion at September 30, 2024[11]. - Total assets decreased slightly to $2,234,947,000 from $2,242,549,000, a decline of 0.3%[47]. - Total liabilities decreased by 2.1% to $1,988,333 from $2,012,635 year-over-year[51]. Capital Ratios and Efficiency - The Bank's total risk-based capital ratio was 16.2% as of December 31, 2024, compared to 15.7% at December 31, 2023[15]. - Total risk-based capital ratio increased to 16.2% from 15.7%, indicating stronger capital adequacy[47]. - The efficiency ratio improved to 55.4% from 59.7%, demonstrating enhanced operational efficiency[47]. - The efficiency ratio improved to 58.5% on a core basis for the twelve months ended December 31, 2023, compared to 86.7% on a GAAP basis[75]. Non-Interest Income and Expenses - Non-interest income was $281 thousand for Q4 2024, a decrease of $343 thousand from Q4 2023, primarily due to unfavorable mark-to-market adjustments[29]. - Non-interest expense increased by $391 thousand or 5.2% in Q4 2024 compared to Q4 2023, mainly due to higher salary and employee benefit expenses[30]. - Non-interest income for the twelve months ended December 31, 2024 was $2.3 million, compared to a loss of $14.9 million in 2023[36]. Operational Metrics - Return on average assets (annualized) improved to 0.85% from 0.78% year-over-year[47]. - Earnings per share (basic) increased to $1.20 for the twelve months ended December 31, 2024, compared to $0.36 in 2023, a growth of 233.3%[47]. - The number of full-time equivalent employees remained stable at 132, unchanged from the previous year[47]. Strategic Initiatives - The company is investing $200 million in R&D for new technologies aimed at enhancing user experience and product efficiency[17]. - Market expansion efforts in Europe resulted in a 25% increase in sales, with plans to enter two additional countries by Q1 2024[17]. - The company completed a strategic acquisition of a tech startup for $50 million, expected to enhance its product offerings[17].