John Marshall Bancorp, Inc. · NASDAQ:JMSB
John Marshall Bancorp — Shareholder Meeting (June 2024)
34 slides from John Marshall Bancorp's shareholder meeting presentation, Jun 21, 2024
Slide 1: Annual Shareholders' Meeting
June 18, 2024 Annual Shareholders’ Meeting 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: Agenda
Agenda 3 Company Overview 2023 Economic Conditions Year in Review First Quarter Highlights and Outlook
Slide 4: Company Overview
4 Company Overview
Slide 5: Franchise Overview
5 Franchise Overview •Founded 2006 •$2.2 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 6: Strategic Priorities
Strategic Priorities 6 Provide an Exceptional Client Experience Expand In High Growth Markets Maintain Financial and Credit Discipline
Slide 7: Operating Philosophy
Operating Philosophy 7 Hire experienced commercial banking and business development officers Enhance customer experience by leveraging digital platform Commercially-oriented bank with focus on deposit-rich industry segments Diversify loan portfolio and improve funding mix Grow non-interest
Slide 8: Selective FinTech partnerships provide operating leverage
8 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 9: Cyber Security and Fraud Risk
9 Recognizing the ever evolving need to mitigate risk associated with cyber attacks and fraud activities for our customers, the Bank has the following fraud prevention products and service offerings: Customer & Employee Education Online Account Access Account Monitoring & Controls Positive P
Slide 10: Core Values
Core Values fi EE HONESTY / EXCELLENCE g BWA RESPONSIVENESS gu OWNERSHIP A 4 JOHN MARSHALL BANCORP, INC.
Slide 11: Diversity, Equity, Opportunity & Inclusion
Diversity, Equity, Opportunity & Inclusion 11 Our Company’s Board of Directors is comprised of 44% minorities. 40% of executive management team identifies as female. 75% of employees promoted during tenure. Employee Composition:
Slide 12: Our Shareholder Value Proposition
Our Shareholder Value Proposition Rewarding Our Shareholders Attractive Market Credit Discipline Prime for Future Growth Experienced Management 12
Slide 13: 2023 Economic Conditions
13 2023 Economic Conditions
Slide 14: United States Commercial Bank Deposits
United States Commercial Bank Deposits 14 $5.00 $7.00 $9.00 $11.00 $13.00 $15.00 $17.00 $19.00 Jan‐06 Jul‐06 Jan‐07 Jul‐07 Jan‐08 Jul‐08 Jan‐09 Jul‐09 Jan‐10 Jul‐10 Jan‐11 Jul‐11 Jan‐12 Jul‐12 Jan‐13 Jul‐13 Jan‐14 Jul‐14 Jan‐15 Jul‐15 Jan‐16 Jul‐16 Jan‐17 Jul‐17 Jan‐18 Jul‐18 Jan‐19 Jul‐19 Jan‐20 Ju
Slide 15: $5 Trillion COVID Stimulus Spurs Inflation
$5 Trillion COVID Stimulus Spurs Inflation 15 Source: Bureau of Labor Statistics. Amounts reflect 12-month percentage change, Consumer Price Index, all items, not seasonally adjusted. -5.00% 0.00% 5.00% 10.00% Jan-06 Nov-06 Sep-07 Jul-08 May-09 Mar-10 Jan-11 Nov-11 Sep-12 Jul-13 May-14 Mar-15 Jan-16
Slide 16: Federal Reserve Increases Interest Rates to Slow Inflation
Federal Reserve Increases Interest Rates to Slow Inflation 16 In 1.5 years, the Federal Reserve pushed up rates by 5.25%
Slide 17: Federal Reserve Boosting of Rates Inverts Yield Curve
Federal Reserve Boosting of Rates Inverts Yield Curve 17 Source: Federal Reserve. Graph above reflects initial point in time when the yield on the 10-year U.S. Treasury was less than 2-year U.S. Treasury. 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 1 Mo 3 Mo 6 Mo 1 Yr 2 Yr 3 Yr 5 Yr 7 Yr 10 Yr 20 Yr 3
Slide 18: Community Bank Earnings Compression
Community Bank Earnings Compression 18 Return on Average Assets (ROAA) Source: FDIC Quarterly Banking Profile (1) JMSB Core (Non-GAAP) data for 2023 excludes the impact of the Restructuring as discussed in the Company's 10-K filed on March 20, 2024. See Reconciliation of Non-GAAP Disclosures for mor
Slide 19: Inverted Yield Curve Contributes To Bank Failures
Inverted Yield Curve Contributes To Bank Failures 19 Bank Name Date Closed Asset Size First Republic Bank, San Francisco, CA 5/1/2023 $229 B Signature Bank, New York, NY 3/12/2023 $110 B Silicon Valley Bank, Santa Clara, CA 3/10/2023 $209 B Source: FDIC $374 $171 $549 $- $100 $200 $300 $400 $500 $60
Slide 20: Rate Increases and Regional Bank Failures
Rate Increases and Regional Bank Failures 20 • Large cap banks - perceived as “Too big to Fail”- showed price appreciation • Small cap banks were flat to down • JMSB share price retained premium valuation 200% 144% 126% 131% 0% 50% 100% 150% 200% 250% 12/31/22 12/31/23 Price to Book Value JMSB Small
Slide 21: JMSB Has Outperformed Over Time
JMSB Has Outperformed Over Time 21 (1) Information sourced from Yahoo! Finance and indexcalculator.com with share price data as of December 31, 2023 9.7% 11.3% 9.5% 8.6% 9.2% 7.7% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 10.0% 11.0% 12.0% June 2008 June 2011 November 2013 Annual Return JMSB Equity Offerings JM
Slide 22: Year in Review
22 Year in Review
Slide 23: 2023 Year in Review
2023 ― Year in Review 23 Pristine Asset Quality Strong Capital Position Liquid Balance Sheet Competitive Shareholder Returns Growth and Financial Performance
Slide 24: Pristine Asset Quality
Pristine Asset Quality 24 Nonperforming Assets¹ / Assets (%) (1) Nonperforming assets include nonaccrual loans and leases, and foreclosed or repossessed assets. 0.32% 0.01% 0.09% 0.03% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.50% 1.00% 2015 2016 2017 2018 2019 2020 2021 2022 2023 December 31, 2023 re
Slide 25: Strong Capital Position
Strong Capital Position 25 3.0 5.0 7.0 9.0 11.0 13.0 15.0 17.0 Leverage ratio Common equity tier 1 ratio Tier 1 risk-based capital Total risk-based capital ratio Ratios (%) Bank Regulatory Capital Ratios Well-Capitalized Threshold December 31, 2023 March 31, 2024
Slide 26: Liquid Balance Sheet
Liquid Balance Sheet 26 Amounts noted above are as of March 31, 2024 Liquidity as Percentage of Total Assets
Slide 27: Competitive Shareholder Returns
Competitive Shareholder Returns 27 Dividend Book ‐value appreciation 1.5% 9.2% increase 7.7% Increased annual cash dividend 10% to $0.22 per share. Measurement period noted above reflects the year-ended December 31, 2023.
Slide 28: Balance Sheet Growth
Balance Sheet Growth 28 Dollars in thousands Total Assets $1,175 $1,394 $1,582 $1,885 $2,149 $2,348 $2,243 2017 2018 2019 2020 2021 2022 2023 Gross Loans $1,007 $1,161 $1,326 $1,563 $1,666 $1,789 $1,860 2017 2018 2019 2020 2021 2022 2023 Deposits $897 $1,138 $1,309 $1,640 $1,882 $2,068 $1,907 2017 2
Slide 29: 2023 Financial Performance
2023 Financial Performance 29 0.80% 0.95% 1.08% 1.06% 1.25% 1.40% 0.22% 0.85% 2017 2018 2019 2020 2021 2022 2023 ROAA Core ROAA (Non‐GAAP) Return on Average Assets (ROAA) 7.14% 8.98% 10.41% 10.49% 12.90% 15.18% 2.32% 8.91% 2017 2018 2019 2020 2021 2022 2023 ROAE Core ROAE (Non‐GAAP) Return on Averag
Slide 30: First Quarter 2024 Highlights & Outlook
30 First Quarter 2024 Highlights & Outlook
Slide 31: First Quarter 2024 Highlights
First Quarter 2024 Highlights 31 0.0% 0.9% JMSB FDIC - All Banks 16.1% 15.4% JMSB FDIC - All Banks 1.4% 2.5% JMSB FDIC - All Banks FDIC – All Banks data is sourced from the FDIC’s Quarterly Banking Profile as of March 31, 2024. Asset Quality Nonperforming Assets / Assets Bank Capital Total Risk Base
Slide 32: Outlook
Outlook 32 U.S. economy experiencing an unprecedented interest rate environment Placing greater emphasis on financial condition than growth Loan pipeline, prudently underwritten, indicates promising growth in coming quarters Grow deposits and improve funding composition Ramp up hiring of season
Slide 33: Appendix
Appendix 33
Slide 34: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures 34 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
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