Business
John Marshall Bancorp, Inc. Reports Second Quarter 2023 Results, Strong Balance Sheet and Well-Positioned for Anticipated Loan Growth
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":"\n \n\n\n 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 six months ended June 30, 2023.\n\n\nSelected Highlights\n\n\n\nPristine Asset Quality – For the fifteenth consecutive quarter, the Company had no nonperforming loans, no other real estate owned and no loans 30 days or more past due. As of June 30, 2023, there were no loans greater than 10 days past due. There were no charge-offs during the quarter. The Company remains steadfast in adhering to our strict underwriting standards and the diligent management of the portfolio.\n\n\n\nIncreasingly Well-Capitalized – The Bank’s capital ratios remain significantly above regulatory thresholds for well-capitalized banks. Our regulatory capital ratios have increased or remained the same as the prior quarter in each of the past four quarters.\n\n\n\nSignificant Liquidity – The Company’s liquidity position, defined as the sum of cash, unencumbered securities and available secured borrowing capacity, totaled $839.4 million as of June 30, 2023, representing 35.5% of total assets. The Company’s liquidity position represented 120% of uninsured, non-collateralized deposits at June 30, 2023, up from 113% at March 31, 2023.\n\n\n\nStrength in CRE Loan Portfolio – The Company’s loan portfolio remains a source of strength. As of June 30, 2023, the Company’s commercial real estate (“CRE”) non-owner occupied and owner-occupied portfolios had a weighted average loan-to-values of 51.7% and 55.8%, respectively, and weighted average debt service coverage ratios of 2.3x and 3.3x, respectively.\n\n\n\nInitial SBA Loan Sale – During the quarter, the Company completed its first Small Business Administration (“SBA”) loan sale. The Company is accelerating activity in this business line and intends to become a preferred lender. We believe the preferred lender status will allow us to streamline the SBA borrowing process for our existing and potential customers and thereby increase loan and deposit balances and fee income.\n\n\n\nProfitability – Annualized return on average equity for the three months ended June 30, 2023 was 8.13%. The Company’s profitability has been impacted by the significant increase in short-term rates that affected funding costs. Long-term prof...