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John Marshall Bancorp, Inc. Reports Higher Net Interest Margin, Strong Loan Growth and Pristine Asset Quality
RESTON, Va.--(BUSINESS WIRE)-- John Marshall Bancorp, Inc. (Nasdaq: JMSB) (the “Company”), parent company of John Marshall Bank (the “Bank”), reported its
About this update from John Marshall Bancorp, Inc.
[{"type":"text","content":" RESTON, Va.--(BUSINESS WIRE)--\nJohn Marshall Bancorp, Inc. (Nasdaq: JMSB) (the “Company”), parent company of John Marshall Bank (the “Bank”), reported its financial results for the three and twelve months ended December 31, 2023.\n\n\nSelected Highlights\n\n\n\nHigher Net Interest Margin – Net interest margin was 2.12% for the three months ended December 31, 2023 compared to 2.08% for the three months ended September 30, 2023. During the third quarter, we repositioned the balance sheet by shedding $183.1 million of lower-yielding assets. During the fourth quarter, we continued to originate and reprice loans at generally higher yields and slow the rate of increase in our funding costs. As of December 31, 2023, the Company believes it is well-positioned for the lower interest rate environment implied by interest rate futures.\n\n\n\nStrong Loan Growth – Loans, net of unearned income, grew $39.8 million or 8.7% annualized from September 30, 2023 to December 31, 2023. Loans, net of unearned income, grew $90.2 million or 10.1% annualized from June 30, 2023 to December 31, 2023. The Company remains selective on credit and continues to pursue opportunities where we can obtain an appropriate risk-adjusted return. We continue to see new lending opportunities that meet our underwriting standards as some of our competitors have scaled back lending efforts.\n\n\n\nPristine Asset Quality – For the seventeenth consecutive quarter, the Company had no nonperforming loans, no other real estate owned and no loans 30 days or more past due. There were no charge-offs during the quarter. The Company continues to adhere to strict underwriting standards and proactively manages the portfolio.\n\n\n\nStable Profitability – Reported net income was $4.5 million for the three months ended December 31, 2023 and the three months ended June 30, 2023. Excluding the non-recurring loss on securities, net of tax and non-recurring taxes and penalties on the early surrender of Bank Owned Life Insurance policies (the “Restructuring”), previously disclosed in our July 21, 2023 earnings release, the Company’s core net income (Non-GAAP) for each of the last three quarters was approximately $4.5 million during a challenging economic environment. The reported loss of $10.1 million for the three months ended September 30, 2023 resulted primarily from the Restructuring. T...