John Marshall Bancorp, Inc. · NASDAQ:JMSB
John Marshall Bancorp — KBW Community Bank Investor Conference 2024
32 slides from John Marshall Bancorp's conference presentation, Jul 30, 2024
Slide 1: July 2024 KBW Community Bank Investor Conference
July 2024 KBW Community Bank Investor Conference 1
Slide 2: Forward Looking Statements
Forward Looking Statements 2 In addition to historical information, this presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are based on certain assumptions and describe future plans, strategies and expectations of John Ma
Slide 3: Franchise Overview, Financial Highlights, Credit & Asset Quality, Capital & Liquidity, Appendices
3 Franchise Overview Financial Highlights Credit & Asset Quality Capital & Liquidity Appendices
Slide 4: Company Overview
Company Overview 4 John Marshall Bank is a growth-oriented commercial bank headquartered in Reston, Virginia Established in 2006, the Company has grown organically to $2.27 billion in assets Seasoned executive team with decades of in-market banking experience Strategy emphasizes local market
Slide 5: Investment Attributes
Rewarding Our Shareholders Attractive Market Credit Discipline Prime for Future Growth Experienced Management 5 Investment Attributes
Slide 6: John Marshall Franchise
John Marshall Franchise 6 Bank commenced operations in April 2006 Chris Bergstrom named President and CEO April 30, 2018 Building value by delivering tailored banking services and exceptional client experiences Commercially-oriented bank targeting: • Small to medium-sized businesses • Builde
Slide 7: Selective FinTech partnerships provide operating leverage and fuel additional growth
7 Selective FinTech partnerships provide operating leverage and fuel additional growth Customer Experience Operating Efficiencies Risk Mitigation FinTech Partnership Benefits Various FinTech Partnerships Leveraging Technology
Slide 8: Executive Leadership
Executive Leadership 8 Chris Bergstrom President & CEO Chris Bergstrom has over 42 years of experience in the banking industry. Before joining John Marshall Bank, Mr. Bergstrom served in a variety of executive positions during 19 years with Cardinal Financial Corporation and Cardinal Bank, most rece
Slide 9: Banking Center Footprint
9 Banking Center Footprint •Founded 2006 •$2.27 billion in assets •Eight regional banking centers serve as business development hubs. •Approximately 97% of the Bank’s deposit dollars are collected electronically. •Relocating Loudoun County office in 4Q 2024. District of Columbia: 1625 K Street, NW
Slide 10: Attractive Metro Markets
Attractive Metro Markets 10 Median Household Income $ (2024) Projected Population Growth % (2024-2029) Educational Attainment % (>=Bachelors Degree) Unemployment Rate % (May 2024, NSA) Sources: S&P Global Market Intelligence, Bureau of Economic Analysis and data.census.gov Blue line represents the a
Slide 11: Market Growth + Consolidation = Unique Opportunity
Market Growth + Consolidation = Unique Opportunity 11 Data as of: 6/30/2013 Data as of: 6/30/2023 Market Deposit Deposits Market Company ($000) Share (%) 1 Wells Fargo & Co. (CA) 23,769,182 15.3 2 Capital One Financial Corp. (VA) 22,128,708 14.2 3 Bank of America Corporation (NC) 21,404,120 13.8 4 S
Slide 12: Financial Highlights
12 Franchise Overview Financial Highlights Credit & Asset Quality Capital & Liquidity Appendices
Slide 13: Second Quarter 2024 Highlights
Second Quarter 2024 Highlights 13 Margin Expansion o The Company improved its earning asset yield and funding composition. For the three months ended June 30, 2024, the Company reported a nine basis points increase in net interest margin when compared to the three months ended March 31, 2024. Ne
Slide 14: Historical Growth
14 Historical Growth $1,007 $1,163 $1,326 $1,563 $1,666 $1,785 $1,860 $1,765 $1,822 2017 2018 2019 2020 2021 2022 2023 1H23 1H24 Total Deposits ($MM) $897 $1,138 $1,309 $1,640 $1,882 $2,068 $1,907 $2,046 $1,913 2017 2018 2019 2020 2021 2022 2023 1H23 1H24 Total Assets ($MM) $1,175 $1,395 $1,582 $1,8
Slide 15: Loan Portfolio Composition
15 Loan Portfolio Composition CRE - Owner Occupied 19.2% CRE - Non-owner Occupied 39.6% Multifamily 5.1% Commercial 2.3% Residential Real Estate 26.2% Commercial Construction & Development 3.0% Residential Construction & Development 4.6% • The Company’s loan pipeline remained strong with $88.4 milli
Slide 16: Strength in CRE Loan Portfolio
16 Strength in CRE Loan Portfolio CRE - Owner Occupied Number of Total Loans Principal Balance(3) Weighted Average Debt Service Coverage Ratio(2) Weighted Average Asset Class Loan-to-Value(1) Warehouse & Industrial 56.5% 2.8x 54 $ 81,825 Office 58.6% 3.7x 130 80,744 Retail 61.0% 3.3x 40 68,794 Churc
Slide 17: Deposit Composition
17 Deposit Composition Improved Funding Composition Increased Non-Interest Bearing Demand Deposits from 21.2% to 22.8% of Total Deposits Decreased Certificates of Deposit from 43.5% to 39.9% of Total Deposits o Total Cost of Deposits at June 30, 2024 was 2.87% o Reduced Certificates of Deposit
Slide 18: Bond Portfolio
18 Bond Portfolio U.S Treasuries and Gov't Agencies, 35.7% Mortgage-Backed and Asset-Backed, 60.3% Municipal, 3.0% Corporate bonds, 1.0% Portfolio Mix - Fair Value As of June 30, 2024, 96% of our bond portfolio carried the implied guarantee of the United States government or one of its agencies. As
Slide 19: Performance Measures
7.14% 8.98% 10.41%10.49% 12.90% 15.18% 2.32% 9.85% 6.95% 8.91% 2017 2018 2019 2020 2021 2022 2023 1H23 1H24 ROAE Core ROAE (Non-GAAP) $0.66 $0.89 $1.17 $1.35 $1.83 $2.25 $0.36 $0.76 $0.57 $1.39 2017 2018 2019 2020 2021 2022 2023 1H23 1H24 Diluted EPS Core Diluted EPS (Non-GAAP) 19 Performance Measur
Slide 20: Non-Interest Income Initiatives
20 Non-Interest Income Initiatives 1H figures reflect amounts for the first six months of each year. Annuity Revenue Streams Bankers Insurance: K-1 income, commissions and bonus payments • Annuity model with next year’s commissions building on the current year’s Purchase Card / Credit Card • Rev
Slide 21: Credit & Asset Quality
21 Franchise Overview Financial Highlights Credit & Asset Quality Capital & Liquidity Appendices
Slide 22: Decreasing Concentration
22 Decreasing Concentration 407% 379% 411% 413% 403% 384% 367% 365% 340% 335% 338% 319% 338% 328% 328% 148% 120% 126% 126% 130% 121% 111% 109% 94% 84% 73% 62% 64% 53% 48% • $1.82B in gross loans held for investment as of 6/30/2024 • 96.6% of credit exposure is within the DC MSA as of 6/30/2024 • No
Slide 23: Disciplined Credit Culture
23 Disciplined Credit Culture Asset Quality Capital Allowance for Credit Losses • Conservative reserve methodology • ACL of 1.01% of loans • “Well-Capitalized” under Basel III • Stress testing on a quarterly basis • Holding company provides capital alternatives • Historically, the Bank has exhibited
Slide 24: Credit Quality
24 Credit Quality 7.9x 0.0x 1.0x 2.0x 3.0x 4.0x 5.0x 6.0x 7.0x 8.0x 9.0x 10.0x Nonperforming Assets¹ / Assets (%) Net Charge-Offs / Loans (%) Reserves / Nonperforming Loans (%) Texas Ratio (%)3 NM2 0.01% 0.09% 0.03%0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.50% 1.00% 0.32% 0.07% 0.03% 0.01% 0.00% 0
Slide 25: Capital & Liquidity
25 Franchise Overview Financial Highlights Credit & Asset Quality Capital & Liquidity Appendices
Slide 26: Strong Capital Ratios
26 Strong Capital Ratios 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 Well-Capitalized Threshold June 30, 2024 December 31, 2023 June 30, 2023 Ratios (%) Bank Regulatory Capital Ratios (As Reported) 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 Well-Capitalized Threshold June 30, 2024 December 31, 20
Slide 27: Sources of Liquidity
27 Sources of Liquidity Net Availability Amount Used Total Available As of June 30, 2024 (Dollars in millions) Internal Sources: Cash $ 182.6 $ - $ 182.6 Unencumbered Securities, at Fair Value 62.8 - 62.8 External Sources: Federal Home Loan Bank 474.2 20.0 454.2 Federal Reserve Bank - BIC 96.4 - 96.
Slide 28: Appendices
28 Franchise Overview Financial Highlights Credit & Asset Quality Capital & Liquidity Appendices
Slide 29: Historical Balance Sheet
29 Historical Balance Sheet As of June 30, ($ in thousands) 2019 2020 2021 2022 2023 2024 ASSETS: Cash and Due from Banks $ 7,471 $ 8,228 $ 2,920 $ 6,583 $ 7,424 $ 10,024 Fed Funds Sold - - - - - - Deposits at Financial Institutions 87,019 130,229 102,879 55,016 91,581 172,581 Cash and Cash Equivale
Slide 30: Historical Income Statement
30 Historical Income Statement Six Months Ended ($ in thousands) 2019 2020 2021 2022 2023 June 30, 2024 Interest and dividend income 68,990 $ 72,446 $ 74,119 $ 84,066 $ 100,770 $ 53,710 $ Interest expense 20,322 15,607 8,211 13,645 50,286 29,885 Net interest income $ 56,839 48,668 $ 65,908 $ 70,421
Slide 31: Reconciliation of Non-GAAP Disclosures
31 Reconciliation of Non-GAAP Disclosures John Marshall Bancorp, Inc. Reconciliation of Certain Non-GAAP Financial Measures (unaudited) (Dollar amounts in thousands, except per share amounts) For the Twelve Months Ended December 31, 2023 Non-interest loss (GAAP) $ (14,940) Adjustment: Pre-tax loss r
Slide 32: Reconciliation of Non-GAAP Disclosures
32 Reconciliation of Non-GAAP Disclosures John Marshall Bancorp, Inc. Reconciliation of Certain Non-GAAP Financial Measures (unaudited) (Dollar amounts in thousands) As of June 30, 2024 December 31, 2023 June 30, 2023 Regulatory Ratios (Bank) Total risk-based capital (GAAP) $ 290,228 $ 282,082 $ 291
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