John Marshall Bancorp(JMSB) - 2025 Q3 - Quarterly Report

Financial Performance - For the three months ended September 30, 2025, net interest income was $15.6 million, an increase from $13.2 million for the same period in 2024, representing a growth of 18.5%[174]. - The Company’s net income for the three months ended September 30, 2025, was $5.4 million, compared to $4.2 million for the same period in 2024, reflecting a year-over-year increase of 27.6%[174]. - The Company reported a net income of $15.3 million for the nine months ended September 30, 2025, an increase of $3.0 million or 24.1% compared to the same period in 2024[178]. - Diluted earnings per common share increased to $1.07 for the nine months ended September 30, 2025, representing a 23.0% increase from $0.87 in 2024[178]. - Net interest income increased by $7.6 million or 20.7% for the nine months ended September 30, 2025, driven by a decrease in interest-bearing liabilities rates and increases in loan portfolio balances and yields[179]. Asset and Liability Management - As of September 30, 2025, the Company reported total consolidated assets of $2.32 billion, total loans net of unearned income of $1.94 billion, total deposits of $1.97 billion, and total shareholders' equity of $259.7 million[169]. - The total amount of uninsured deposits was estimated at $843.4 million as of September 30, 2025, representing 35% of total deposits[278]. - Total liabilities rose by $76.5 million or 3.8% to $2.06 billion at September 30, 2025, mainly due to a $76.4 million increase in total deposits[246]. - The total net loans as of September 30, 2025, were $1.92 billion, up from $1.85 billion as of December 31, 2024[257]. - The Company maintained no nonperforming loans as of September 30, 2025, compared to $9.978 million in nonperforming assets as of December 31, 2024[259]. Credit Quality and Risk Management - The allowance for loan credit losses increased to $19.7 million as of September 30, 2025, from $18.5 million a year earlier, indicating a proactive approach to managing credit risk[174]. - The provision for credit losses was $1.1 million for the nine months ended September 30, 2025, compared to a recovery of $0.7 million in 2024[180]. - The allowance for loan credit losses was $19.7 million or 1.02% of outstanding loans as of September 30, 2025, compared to $18.7 million or 1.01% at December 31, 2024[264]. - The Company’s asset quality remained strong with no nonaccrual loans as of September 30, 2025[260]. Efficiency and Profitability Ratios - The efficiency ratio improved to 55.6% for the three months ended September 30, 2025, down from 58.3% in the same period of 2024, indicating better cost management[174]. - The Company’s return on average assets (ROAA) increased to 0.94% for the three months ended September 30, 2025, compared to 0.73% for the same period in 2024[174]. - The return on average assets (ROAA) improved to 0.91% for the nine months ended September 30, 2025, up from 0.73% in 2024[183]. Interest Income and Margin - The Company maintained a net interest margin of 2.72% for the three months ended September 30, 2025, compared to 2.30% for the same period in 2024, showing improved efficiency in earning interest[174]. - The net interest margin increased to 2.67% for the nine months ended September 30, 2025, compared to 2.20% in 2024, reflecting a 47 basis points improvement[190]. - The annualized net interest margin for the three months ended September 30, 2025, was 2.72%, compared to 2.30% for the same period in 2024[213]. - The yield on loans for the three months ended September 30, 2025, was 5.44%, up from 5.33% in the prior year, indicating an 11 basis points increase[226]. Deposits and Liquidity - Total deposits increased by $76.4 million or 4.0% to $1.97 billion as of September 30, 2025, compared to $1.89 billion as of December 31, 2024[272]. - Core deposits totaled $1.67 billion, representing 84.7% of total deposits as of September 30, 2025, compared to $1.62 billion or 85.4% at December 31, 2024[274]. - Total liquidity was $826.7 million at September 30, 2025, compared to $727.3 million at December 31, 2024[287]. Shareholder Equity - The Company’s book value per share increased to $18.27 as of September 30, 2025, compared to $17.07 a year prior, indicating growth in shareholder equity[174]. - Shareholders' equity increased by $13.1 million or 5.3% to $259.7 million at September 30, 2025, attributed to net income and a decrease in accumulated other comprehensive loss[247]. - Retained earnings increased by $11.0 million during the nine months ended September 30, 2025, due to net income exceeding dividends paid[282]. Market Strategy - The Company anticipates continued focus on expanding its market presence in the Washington, D.C. metropolitan area while managing risks associated with economic and regulatory changes[163].