John Marshall Bancorp(US:JMSB)2025-05-13 13:23Financial Performance - The Company achieved net income of $4.8 million for the three months ended March 31, 2025, an increase of 14.3% compared to $4.2 million for the same period in 2024 [173]. - Diluted earnings per share rose to $0.34 for the three months ended March 31, 2025, compared to $0.30 for the same period in 2024, reflecting a 13.3% increase [173]. - Net interest income increased to $14.1 million for the three months ended March 31, 2025, up from $11.7 million in the same period of 2024, representing a growth of 19.5% [170]. - Non-interest income decreased to $505,000 for the three months ended March 31, 2025, down from $818,000 in the same period of 2024 [170]. - The efficiency ratio improved to 56.5% for the three months ended March 31, 2025, compared to 63.1% for the same period in 2024, indicating better cost management [170]. Asset and Liability Management - As of March 31, 2025, the Company reported total consolidated assets of $2.27 billion, total loans of $1.87 billion, total deposits of $1.92 billion, and total shareholders' equity of $253.0 million [164]. - Total assets increased by $37.5 million or 1.7% to $2.27 billion as of March 31, 2025, primarily due to a $42.0 million rise in interest-bearing deposits [199]. - Total liabilities grew by $31.1 million or 1.6% to $2.02 billion, mainly due to a net increase in deposits of $29.8 million [200]. - Shareholders' equity increased by $6.3 million or 2.6% to $253.0 million, attributed to higher net income and a decrease in accumulated other comprehensive loss [201]. Loan and Deposit Information - Gross loans decreased by $1.7 million to $1.87 billion as of March 31, 2025, reflecting the company's disciplined underwriting standards [208]. - The composition of loans held for investment as of March 31, 2025, included 62.84% in commercial real estate loans, 9.29% in construction and land development, and 25.33% in residential loans [210]. - Total deposits increased by $29.8 million or 1.6% to $1.92 billion as of March 31, 2025, with non-interest bearing demand deposits at $437.8 million [224]. - Interest-bearing deposits rose by $25.2 million or 1.7% to $1.48 billion, representing 77.2% of total deposits as of March 31, 2025 [225]. Credit Quality and Allowance for Loan Losses - The Company maintained an allowance for loan credit losses of $18.8 million, which is 1.01% of total gross loans net of unearned income [170]. - The allowance for loan credit losses was $18.8 million, representing 1.01% of outstanding loans as of March 31, 2025, compared to 1.00% at December 31, 2024 [218]. - The Company recorded a provision for credit losses of $170 thousand for the first quarter of 2025, compared to a recovery of $776 thousand for the first quarter of 2024 [191]. - The company reported no nonperforming assets as of March 31, 2025, maintaining strong asset quality [213]. - Nonaccrual loans remained at 0.00% of gross loans, indicating no loans were placed on nonaccrual status during the reporting period [216]. Capital Ratios and Equity - The equity-to-total assets ratio increased to 11.9% as of March 31, 2025, compared to 11.3% as of March 31, 2024 [170]. - The total risk-based capital ratio improved to 16.5% as of March 31, 2025, compared to 16.1% as of March 31, 2024 [170]. - Shareholders' equity increased by $6.3 million or 2.6% to $253.0 million at March 31, 2025, with a book value per share of $17.72 [233]. Investment and Liquidity - The Company purchased $3.6 million of investment securities in Q1 2025, including $2.6 million in agency mortgage-backed securities [203]. - Total liquidity was $786.9 million at March 31, 2025, an increase from $727.3 million at December 31, 2024 [237]. - The Company had a total FHLB available borrowing capacity of $401.0 million and additional borrowing capacity with the Reserve Bank of approximately $107.1 million as of March 31, 2025 [236]. - The Company had available federal funds lines with correspondent banks of $110.0 million at March 31, 2025 [238]. Interest Rates and Income - The average interest rate on total interest-bearing deposits was 3.42% for the three months ended March 31, 2025 [228]. - Interest income increased by $0.4 million or 1.4% to $27.3 million on a fully tax-equivalent basis for the three months ended March 31, 2025, driven by increases in both rates and volume on interest-earning assets [186]. - Interest expense decreased by $2.0 million to $13.2 million for the three months ended March 31, 2025, compared to $15.2 million for the same period in 2024, mainly due to lower rates on deposits and decreased volume on borrowings [190].