John Marshall Bancorp, Inc. · NASDAQ:JMSB
John Marshall Bancorp — Raymond James U.S. Bank Conference 2022
33 slides from John Marshall Bancorp's conference presentation, Sep 7, 2022
Slide 1: Raymond James U.S. Bank Conference, September 7-8, 2022
September 7 -8, 2022Raymond James U.S. Bank Conference
Slide 2: Forward Looking Statements
Forward Looking StatementsInadditiontohistoricalinformation,thispresentationmaycontaincertainforward-lookingstatementswithinthemeaningofthePrivateSecuritiesLitigationReformActof1995whichare basedoncertainassumptionsanddescribefutureplans,strategiesandexpectationsofthe Company.Theseforward-lookingsta
Slide 3: Franchise Overview
3Franchise OverviewFinancial HighlightsCredit & Asset Quality Funding & Liquidity Appendices
Slide 4: Company Overview
Company OverviewJohn Marshall Bank is a growth-oriented commercial bank headquartered in Reston, VirginiaEstablished in 2006, the Company has grown organically to over $2.32 billion in assetsSeasoned executive team with decades of in-market banking experienceStrategy emphasizes growth in loans,
Slide 5: Investment Attributes
Investment AttributesYTD represents the six months ended June 30, 2022. Inside ownership as of April 29, 2022.PTPP: Pre-Tax, Pre-Provision5 Experienced Management•Combined team brings decades of in-market experience•Inside ownership of 18.44%Conservative Balance Sheet•Well-capitalized•Excellent asse
Slide 6: John Marshall Franchise
John Marshall Franchise•Bank commenced operations in April 2006•$22 million recapitalization completed in 2008•Holding company formed March 1, 2017•Chris Bergstrom named President and CEO April 30, 2018•Building value by delivering tailored banking services and exceptional client experiences•Commerc
Slide 7: Leveraging Technology
Leveraging TechnologySelectiveFinTechpartnershipsprovideoperatingleverageandfueladditionalgrowth7 Customer ExperienceOperatingEfficienciesRiskMitigationFinTech Partnership BenefitsVarious FinTech Partnerships
Slide 8: Executive Leadership
Executive LeadershipChris BergstromPresident & CEOChrisBergstromhasover40yearsofexperienceinthebankingindustry.BeforejoiningJohnMarshallBank,ChrisservedinavarietyofexecutivepositionsmostrecentlyservingasPresidentandCEOof CardinalFinancialCorporationandPresidentofUnitedBankuponitsacquisitionofCardina
Slide 9: Executive Leadership
Executive Leadership9Jason McDonoughEVP, Chief Lending OfficerJasonMcDonoughhasover16yearsofbankingexperience,including11withCardinalBank.Hehasabackgroundinbothretailandcommercialbankingincluding10yearsasaCommercialLender specializinginRealEstateLending.McDonoughmostrecentlyservedastheDirectorofComm
Slide 10: Banking Center Footprint
Banking Center Footprint Banking Center(8)Loan Production Office (1) •Regional banking centers serve as business development hubs.•Approximately 97% of the Bank’s deposit dollars are collected electronically. 10
Slide 11: Attractive Metro Markets
Attractive Metro MarketsSources: S&P Global Market Intelligence, Bureau of Economic Analysis and data.census.govMedian Household Income (2022)Projected Population Growth % (2022-2027)Educational Attainment (>=Bachelors Degree)Unemployment Rate (May 2022, NSA)11 49.8 49.6 47.6 40.6 37.8 37.7 34.1 127
Slide 12: Deposit Market Share
MarketDepositMarketDepositDepositsMarketDepositsMarketCompany($000)Share (%)Company($000)Share (%)1Wells Fargo & Co. (CA)23,769,18215.31Bank of America Corporation (NC)44,325,98315.92Capital One Financial Corp. (VA)22,128,70814.22Capital One Financial Corp. (VA)43,619,99515.73Bank of America Corpora
Slide 13: Financial Highlights
13Franchise OverviewFinancial HighlightsCredit & Asset QualityFunding & Liquidity Appendices
Slide 14: Second Quarter 2022 Highlights
•Record quarterly & YTD earnings of $7.9MM ($0.56 diluted EPS) and $15.6MM ($1.10 diluted EPS), respectively. YTD 2Q2022 diluted EPS improved 37.5% vs. the prior yearo14thconsecutive quarter of record earnings•YTD efficiency ratio of 46.1%oRevenues grew 6.2% and overhead decreased 2.9% versus prior
Slide 15: Historical Growth
$1,007 $1,161 $1,326 $1,563 $1,666 $1,485 $1,690 201720182019202020211H211H22 $897 $1,138 $1,309 $1,640 $1,882 $1,815 $2,044 201720182019202020211H211H22 $105 $105 $130 $159 $352 $306 $474 201720182019202020211H211H22 $1,175 $1,395 $1,582 $1,885 $2,149 $2,066 $2,316 201720182019202020211H211H22Histo
Slide 16: Loan Portfolio Composition
Loan Portfolio Composition 16Business segment is comprised of Commercial Business, PPP, and Commercial owner-occupied real estate loansLoan Balances are gross loan amounts before allowance for loan losses and deferred fees/costs. Commercial Real Estate -Non-Owner Occupied41.7%Business25.2%Consumer0.
Slide 17: Debt Securities Portfolio
Debt Securities Portfolio 17 Conservative, High Quality, and Liquid Securities Portfolio Debt Securities Portfolio as of June 30, 2022(Dollars in thousands)Amortized CostEstimated Fair Value Held-to-maturityU.S Treasuries$6,001 $5,350 U.S. government and federal agencies35,630 31,385 Collateralized
Slide 18: Performance Measures
Performance Measures ROAA (%) ROAE (%) Efficiency Ratio (%) Book Value per Share excluding AOCI ($)181SThalf figures reflect amounts at or for the six months ended of each year.BVPS ex. AOCI represents book value per share excluding impacts from Accumulated Other Comprehensive Income 7.14%8.98%10.41
Slide 19: Growth + Efficiency = Core Earnings Power
Growth + Efficiency = Core Earnings Power19 PPPPPPPPP 800,000 900,000 1,000,000 1,100,000 1,200,000 1,300,000 1,400,000 1,500,000 1,600,000 1,700,000 1,800,000201720182019202020211H211H22Gross Loans ($M) 1.00%1.20% 1.40% 1.60% 1.80% 2.00% 2.20% 2.40%201720182019202020211H211H22Non-Interest Expense /
Slide 20: COVID-19 Response – PPP Loans
COVID-19 Response –PPP Loans20 $138,298 $148,156 $148,156 $114,411 $117,796 $82,190 $75,496 $69,567 $7,781 $224 $- $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000Apr-20Jun-20Sep-20Dec-20Mar-21Jun-21Sep-21Dec-21Mar-22Jun-22 Total PPP PPP Balances Over Time ($M)
Slide 21: Non-Interest Income Initiatives
Non-Interest Income InitiativesBankers Insurance: K-1 income, commissions and bonus payments–Annuity model with next year’s commissions building on the current year’sPurchase Card / Credit Card–Revenue share annuity business with provider Merchant Bankcard–Annuity business with three high-quality
Slide 22: Stock Price Performance
-30.0%-20.0% -10.0%0.0%10.0% 20.0% 30.0% 40.0%1Q 20212Q 20213Q 20214Q 20211Q 20222Q 20223Q QTD 2022Stock Price Performance JMSB KBW Nasdaq Bank Index June 24, 2022 -JMSB added to Russell 2000 Index Stock Price Performance22 April 27, 2022 –SEC Registration Effective Share data through September 1, 2
Slide 23: Credit & Asset Quality
23Franchise OverviewFinancial HighlightsCredit & Asset QualityFunding & Liquidity Appendices
Slide 24: Decreasing Concentration
407%379%411%413%403%384%367%365%340%335%336% 148%120%126%126%130%121%111%109%94%84%71% Decreasing Concentration•$1.690B in gross loans held for investment as of 6/30/2022•93.5% of credit exposure is within the DC MSA•YTD 2Q2022 yield on total loans of 4.39% (4.19% excluding PPP impact)•M&A disruptio
Slide 25: Disciplined Credit Culture
Disciplined Credit Culture25 Asset QualityCapitalLoan Loss Allowance•Historically, the Bank has exhibited excellent loan quality with low levels of classified loans•No NPAs, NPLs or loans 30+ day PD for the eleventhconsecutive quarter•“Well-Capitalized” under Basel III•Stress testing on a quarterly
Slide 26: Credit Quality
1.6x7.9x0.0x1.0x 2.0x 3.0x 4.0x 5.0x 6.0x 7.0x 8.0x 9.0x10.0x20152016201720182019202020212Q2022Credit Quality(1) Nonperforming assets include nonaccrual loans and leases, and foreclosed or repossessed assets(2) Reserves / NPLs (%) greater than 1,000% due to no or immaterial non-performing loans(3) D
Slide 27: Funding & Liquidity
27Franchise OverviewFinancial Highlights Credit & Asset QualityFunding & LiquidityAppendices
Slide 28: Improved Funding Composition
Improved Funding Composition($ in thousands); data as of 6/30/202228•Non-maturing deposits increased to 66.6% of total deposits vs. 52.3% at 12/31/2018•Wholesale funding represented 14.9% of Total Funding Sources as of June 30, 2022―Since 12/31/2018, assets have grown $922MM and wholesale funding ha
Slide 29: Liquidity Position
Liquidity PositionCore deposit gathering initiative decreased Loans / Deposits ratio from 97.2% at 6/30/2018 to 82.8% at 6/30/2022Significantly increased FHLB Advance Capacity•Reduced Advances by $68.5MM since 12/31/2018•Enhanced FHLB reporting to increase borrowing capacity$25 million issuance of 5
Slide 30: Appendices
30Franchise OverviewFinancial Highlights Credit & Asset Quality Funding & LiquidityAppendices
Slide 31: Historical Balance Sheet
Historical Balance Sheet31 ($ in thousands)201720182019202020212Q2022ASSETS: Cash and Due from Banks $ 7,256 $ 7,853 $ 7,471 $ 8,228 $ 2,920 $ 12,915 Fed Funds Sold 40 126 - - - - Deposits at Financial Institutions 30,873 93,716 87,019 130,229 102,879 107,972 Cash and Cash Equivalents $ 38,169 $ 101
Slide 32: Historical Income Statement
Historical Income Statement32 Six Months($ in thousands)201720182019202020212Q2022Interest and dividend income49,318$ 57,890$ 68,990$ 72,446$ 74,119$ 39,300$ Interest expense8,793 14,190 20,322 15,607 8,211 4,076 Net interest income40,525$ 43,700$ 48,668$ 56,839$ 65,908$ 35,224$ Provision for loan l
Slide 33: Contact Information
Contact InformationChristopher W. BergstromPresident and CEOcbergstrom@johnmarshallbank.com (703) 584-08791943 Isaac Newton Square, Suite 100 Reston, Virginia 2019033
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