John Marshall Bancorp(US:JMSB)2022-05-25 21:01Financial Position - As of March 31, 2022, the Company had total consolidated assets of $2.25 billion, total loans net of unearned income of $1.63 billion, total deposits of $1.98 billion, and total shareholders' equity of $204.9 million[151]. - Total assets increased by $100.3 million or 4.7% to $2.25 billion at March 31, 2022, funded mainly by a $73.3 million increase in interest-bearing deposits[210]. - Total liabilities increased by $103.9 million or 5.4% to $2.04 billion at March 31, 2022, driven by a $101.5 million increase in total deposits[211]. - Total shareholders' equity decreased by $3.6 million or 1.7% to $204.9 million at March 31, 2022, primarily due to an increase in net unrealized losses on the investment portfolio[212]. - Liquid assets totaled $422.5 million as of March 31, 2022, representing 18.8% of total assets, up from $299.3 million or 16.8% of total assets at December 31, 2021[256]. Loan Performance - The Company approved 1,096 PPP loans totaling $229.2 million during the first and second rounds of the PPP spanning the twelve months ended December 31, 2020 and 2021[163]. - The outstanding balance of PPP loans as of March 31, 2022, was $7.6 million, net of deferred fees and costs[163]. - For the three months ended March 31, 2022, the Company did not have any loans in the deferral program[164]. - The allowance for loan losses was $20.0 million as of March 31, 2022, representing 1.23% of total gross loans, net of unearned income[196]. - The Company did not record a provision for loan losses for the three months ended March 31, 2022, compared to $2.4 million for the same period in 2021, indicating a decrease in uncertainty regarding the loan portfolio[170]. Income and Earnings - Net income increased by $2.6 million or 51.2% to $7.7 million for the three months ended March 31, 2022, compared to $5.1 million for the same period in 2021[167]. - Diluted earnings per share rose by $0.18 or 48.6% to $0.55 for the three months ended March 31, 2022, compared to $0.37 for the same period in 2021[168]. - Net interest income increased by $1.6 million to $17.9 million for the three months ended March 31, 2022, reflecting a 10.0% growth compared to $16.3 million for the same period in 2021[169]. - Non-interest income decreased by $50 thousand or 10.8% to $414 thousand for the three months ended March 31, 2022, primarily due to a decrease in mark-to-market adjustments[171]. - Non-interest expense increased by $893 thousand or 11.3% to $8.8 million for the three months ended March 31, 2022, driven by a $1.0 million increase in salaries and employee benefits[172]. Capital and Liquidity - The total risk-based capital ratio at the bank level was 15.4% as of March 31, 2022, compared to 14.6% in the previous year[176]. - The capital conservation buffer requires a minimum common equity Tier 1 ratio of 7.0%, with the Bank exceeding the fully phased-in requirements as of March 31, 2022[249]. - The minimum Tier 1 capital ratio for well-capitalized status is set at 8.0%, with the Bank categorized as well-capitalized under regulatory frameworks as of March 31, 2022[250]. - The Company conducts quarterly liquidity stress testing to prepare for unexpected adverse scenarios[255]. - Management maintains that the Company has a strong liquidity position, although future conditions could negatively impact this[258]. Investment and Securities - The fixed income investment securities portfolio's carrying value increased to $402.3 million at March 31, 2022, from $344.8 million at December 31, 2021[213]. - The investment portfolio had an estimated weighted average remaining life of approximately 5.0 years as of March 31, 2022[216]. - The company purchased $88.2 million of investment securities during the three months ended March 31, 2022, including $57.7 million of mortgage-backed securities[214]. - Average investment securities increased by approximately $196.4 million between the three months ended March 31, 2022, and 2021, funded primarily by PPP loan payoffs and deposit growth[192]. Deposits - Total deposits increased by $101.5 million or 5.4% to $1.98 billion as of March 31, 2022, compared to $1.88 billion at December 31, 2021[240]. - Non-interest bearing demand deposits rose by $7.0 million or 1.4% to $495.8 million, accounting for 25.0% of total deposits as of March 31, 2022[240]. - Interest-bearing deposits increased by $94.6 million or 6.8% to $1.49 billion, representing 75.0% of total deposits as of March 31, 2022[241]. - Core deposits totaled $1.74 billion, making up 87.9% of total deposits as of March 31, 2022, compared to 87.1% at December 31, 2021[242]. Risk and Uncertainty - The Company’s financial performance is highly dependent on the business environment in its primary markets and the overall U.S. economy, particularly due to the impacts of the COVID-19 pandemic[161]. - The Company’s ability to predict future results is inherently uncertain and may be affected by various risks, including economic conditions and regulatory changes[145]. - The allowance for loan losses is evaluated regularly and is based on management's review of the collectability of loans, considering historical experience and prevailing economic conditions[155]. - The general component of the allowance for loan losses is based on historical loss experience adjusted for qualitative factors, including trends in delinquencies and economic conditions[156]. - The Company has off-balance sheet arrangements that include commitments to extend credit and standby letters of credit, which may impact liquidity and capital resources[259].