John Marshall Bancorp, Inc. JMSB (the "Company"), parent company of John Marshall Bank (the "Bank"), reported its financial results for the three and twelve months ended December 31, 2019.
Selected Highlights
- Record Annual Earnings - Net income increased 30.8% to $15.9 million for the twelve months ended December 31, 2019, compared to $12.2 million for the same period in 2018. Earnings per diluted share were $1.17 for the twelve months ended December 31, 2019, a 31.5% increase from $0.89 per diluted share for the twelve months ended December 31, 2018.
- Quarterly Earnings Improvement Accelerates - Net income improved with each sequential quarter in 2019 and increased 47.5% to $4.5 million for three months ended December 31, 2019, compared to $3.0 million for the three months ended December 31, 2018. Earnings per diluted share were $0.33 for the three months ended December 31, 2019, a 50.0% increase from $0.22 per diluted share for the three months ended December 31, 2018.
- Performance Ramps Up - 4th Quarter 2019 earnings produced an annualized Return on Average Assets ("ROAA") of 1.14%, an increase over the 0.89% reported for the three months ended December 31, 2018. The annualized Return on Average Equity ("ROAE") for the three months ended December 31, 2019 was 11.05%, an increase over the 8.57% reported for the three months ended December 31, 2018.
- Strong Balance Sheet Growth Continues - Total assets increased 13.4% from $1.39 billion at December 31, 2018 to $1.58 billion at December 31, 2019. Gross loans, net of unearned income, increased 14.1% from $1.16 billion at December 31, 2018 to $1.33 billion at December 31, 2019. Total deposits grew 15.0% from $1.14 billion at December 31, 2018 to $1.31 billion at December 31, 2019.
- Improved Funding Composition – Noninterest-bearing demand deposits grew 23.0% or $51.2 million from $222.3 million at December 31, 2018 to $273.5 at December 31, 2019. As a percentage of deposits, noninterest-bearing comprised 20.9% at December 31, 2019 and 19.5% at December 31, 2018. Consistent with our strategic plan, non-interest bearing deposits grew at a rate in excess of total deposits.
- Focused on Expenses – For the twelve months ended December 31, 2019, total noninterest expenses grew 0.6% or $179 thousand from $28.5 million to $28.7 million. By comparison, revenue, defined as the sum of net interest income and noninterest income grew $5.1 million or 11.3% from $44.9 million for the twelve months ended December 31, 2018, to $50.0 million for the twelve months ended December 31, 2019. The Company's efficiency ratio was 57.4% for the twelve months ended December 31, 2019 and 63.5% for the same period in 2018. The efficiency ratio was 54.4% for the three months ended December 31, 2019 and 64.4% for the same period in 2018.
- Maintained Superb Asset Quality - There were no non-performing assets as of December 31, 2019. There were no loans 30 or more days past due and accruing interest as of December 31, 2019. Net charge-offs to average loans were 0.01% for the twelve months ended December 31, 2019.
- Improved Tangible Book Value - Tangible book value per share at December 31, 2019 was $12.34, a 12.1% increase from $11.01 at December 31, 2018.
Christopher Bergstrom, President and Chief Executive Officer, commented, "We have the people, products, services and digital platform, including a revamped, customer-centric website, to continue to drive our growth and profitability. I would like to express my thanks to our customers and associates who made the 2019 results possible. Our intention is to continue to build upon these accomplishments in 2020. Importantly, thank you to our shareholders for your support and confidence. The team at John Marshall Bank strives to continue to earn your trust as we focus on carrying forward our momentum from 2019."
Balance Sheet Review
Assets
Total assets were $1.58 billion at December 31, 2019, $1.51 billion at September 30, 2019 and $1.39 billion at December 31, 2018. During the fourth quarter of 2019 assets increased $68.7 million or 4.5%. Year-over-year asset growth, from December 31, 2018 to December 31, 2019, was $187.3 million or 13.4%.
Loans
Gross loans were $1.33 billion at December 31, 2019, $1.26 billion at September 30, 2019 and $1.16 billion at December 31, 2018. Gross loans, net of unearned income, increased $69.7 million or 5.5% during the fourth quarter of 2019. Year-over-year gross loans, net of unearned income, increased $164.1 million or 14.1% from December 31, 2018 to December 31, 2019.
Investment Securities
The Company's portfolio of investments in debt securities was $122.7 million at December 31, 2019, $108.0 million at September 30, 2019 and $97.2 million at December 31, 2018. The Company also had restricted securities totaling $7.2 million at December 31, 2019, $6.5 million at September 30, 2019 and $7.3 million at December 31, 2018. The total investment portfolio growth, from December 31, 2018 to December 31, 2019, was $25.7 million, or 24.6%.
Interest Bearing Deposits in Banks
Interest-bearing deposits in banks were $87.0 million at December 31, 2019, $98.0 million at September 30, 2019 and $93.7 million at December 31, 2018. During the fourth quarter of 2019, interest-bearing deposits in banks declined as funds were deployed into higher yielding assets.
Deposits
Total deposits were $1.31 billion at December 31, 2019, $1.27 billion at September 30, 2019 and $1.14 billion at December 31, 2018. Year-over-year deposit growth, from December 31, 2018 to December 31, 2019, was $170.3 million, or 15.0%. Year-over-year, non-interest bearing deposits grew $51.2 million, or 23.0%, from December 31, 2018 to December 31, 2019. Core customer funding was $1.17 billion at December 31, 2019, $1.14 billion at September 30, 2019 and $1.05 billion at December 31, 2018.
ICS deposits were $187.4 million at December 31, 2019, $175.3 million at September 30, 2019 and $135.1 million at December 31, 2018. Year-over-year, ICS deposits increased $52.3 million from December 31, 2018 to December 31, 2019. CDARS were $50.9 million at December 31, 2019, $65.9 million at September 30, 2019 and $112.2 million at December 31, 2018. Reciprocal deposits can fluctuate with customers' preferences to receive fixed (CDARS) or floating (ICS) yields.
Certificates of deposits were $383.5 million at December 31, 2019, $369.3 million at September 30, 2019 and $341.4 million at December 31, 2018. Year-over-year, certificates of deposits increased $42.1 million from December 31, 2018 to December 31, 2019. QwickRate certificates of deposit were $18.0 million at December 31, 2019, $17.9 million at September 30, 2019 and $20.6 million at December 31, 2018. Year-over-year QwickRate certificates of deposit decreased $2.6 million from December 31, 2018 to December 31, 2019. Brokered deposits were $125.1 million at December 31, 2019, $112.7 million at September 30, 2019 and $68.2 million at December 31, 2018. Brokered deposits increased $56.9 million from December 31, 2018 to December 31, 2019.
Borrowings
Federal funds purchased were $12.0 million at December 31, 2019 and $15.0 million at December 31, 2018. There were no Federal funds purchased at September 30, 2019. Federal funds purchased decreased $3.0 million, from December 31, 2018 to December 31, 2019. Federal Home Loan Bank advances were $62.0 million at December 31, 2019, $47.0 million at September 30, 2019 and $68.5 million at December 31, 2018. Federal Home Loan Bank advances decreased $6.5 million from December 31, 2018 to December 31, 2019.
The Company had subordinated notes with a balance of $24.6 million at December 31, 2019, September 30, 2019, and December 31, 2018. The notes qualify as Tier 2 capital for the Company for regulatory purposes.
Shareholders' Equity and Capital Levels
Total shareholders' equity was $162.0 million at December 31, 2019, $157.3 million at September 30, 2019 and $142.0 million at December 31, 2018. Year-over-year shareholders' equity increased by $20.0 million, or 14.1%, primarily a result of retained earnings growth of $15.9 million. Total common shares outstanding increased from 12,900,125, including 86,400 unvested shares, at December 31, 2018, to 13,127,661, including 51,548 unvested shares, at December 31, 2019. The year-over-year increase in shares outstanding was primarily from the exercise of stock options and issuance of restricted stock.
The Company's capital ratios remain well above regulatory minimums for well capitalized banks. As of December 31, 2019, the Company's total risk-based capital ratio was 13.7%, compared to 13.9% at December 31, 2018.
Income Statement Review
Net Interest Income
Net interest income, the Company's primary source of revenue, was $12.6 million for the three months ended December 31, 2019, up 8.0% from $11.6 million for the three months ended December 31, 2018. The net interest margin was 3.31% for the three months ended December 31, 2019 as compared to 3.50% for the three months ended December 31, 2018. Average net loans increased $149.6 million, or 13.2%, compared to the three months ended December 31, 2018, with an 11 basis point decrease in yield. Average securities increased $17.3 million, or 16.5%, compared to the three months ended December 31, 2018, with a 13 basis point increase in yield. The average cost of interest-bearing liabilities increased 10 basis points from 1.78% for the three months ended December 31, 2018 to 1.88% for the same period in 2019.
For the twelve months ended December 31, 2019, net interest income was $48.7 million, up 11.4% from $43.7 million for the twelve months ended December 31, 2018. The net interest margin was 3.40% during the twelve months ended December 31, 2019, compared to 3.51% during same period in 2018. Despite the decline in the net interest margin over the past year, net interest income increased, resulting primarily from a $186.8 million, or 15.0%, increase in average earning assets during the twelve months ended December 31, 2019, as compared to the same period in 2018.
On a linked quarterly basis, net interest margin declined 7 basis points to 3.31% for the three months ended December 31, 2019, with the yield on earning assets declining from 4.84% for the three months ended September 30, 2019, to 4.68% for the three months ended December 31, 2019. The continued decline in yields in the quarter was primarily a result of the three 25 basis point rate cuts made by the Federal Reserve in second half of 2019. The average cost of interest-bearing liabilities declined 10 basis points from 1.98% for the three months ended September 30, 2019, compared to 1.88% for the three months ended December 31, 2019. Funding rates typically lag as the rates are not tied to a key index and term funding does not reprice until maturity.
Provision for Loan Losses
The Company had $360 thousand in provision for loan losses for the three months ended December 31, 2019, compared to a provision of $403 thousand for the same period in 2018. The Company had no loan charge-offs during the fourth quarter of 2019 and $180 thousand in net loan charge-offs during the fourth quarter of 2018.
For the twelve months ended December 31, 2019, the Company recognized a provision for loan losses of $1.2 million, compared to a provision of $1.1 million during the same period in 2018. The increase in provision for the twelve months ended December 31, 2019 was due to growth in the loan portfolio. The Company reported $145 thousand in net loan charge-offs in 2019, compared to $265 thousand in net loan charge-offs during 2018.
Noninterest Income
The Company's noninterest income consists primarily of bank owned life insurance income and service charges on deposit accounts. The majority of loan fees are included in interest income on the loan portfolio and not reported as noninterest income.
For the three months ended December 31, 2019, the Company reported total noninterest income of $315 thousand, an increase of $12 thousand, or 4.0%, compared to $303 thousand during the three months ended December 31, 2018.
For the twelve months ended December 31, 2019, the Company reported total noninterest income of $1.3 million, compared to $1.2 million during the same period in 2018, an increase of $98 thousand, or 7.9%. The year-over-year change for the twelve month period ended December 31, 2019 was attributable in part to an increase in service charges on deposit accounts of $48 thousand, or 9.4% increase when compared to the same period in 2018. The increase in service charges on deposit accounts is mostly related to higher ATM and debit interchange fees collected. Bank owned life insurance fee income declined $24 thousand year-over-year from 2019 to 2018 which is driven by market returns. Fees collected on CDARs balances also declined year-over-year from 2018 to 2019, which is included in other service charge fees. Noninterest income for the twelve month period ended December 31, 2019 included a $14 thousand gain on sale of securities.
Included in other operating income for the twelve months ended December 31, 2019 is $40 thousand related to insurance commissions. The Bank is party to a joint marketing agreement with an insurance company, in which the Bank has an ownership interest. The agreement calls for the Bank to earn commissions on referred business, on both new sales and renewals. The joint marketing agreement commenced during the 4th quarter of 2018, so the insurance commission income to date has been predominately new business. The Bank anticipates that insurance commission income will grow as prior year policies renew and are supplemented with new business.
Noninterest Expense
For the three months ended December 31, 2019, noninterest expense declined 8.9%, to $7.0 million, compared to $7.7 million for the same period in 2018. Salaries and employee benefit expenses was $4.2 million during the three months ended December 31, 2019, down $691 thousand, or 14.1%, when compared to $4.9 million during the three months ended December 31, 2018. Occupancy expense decreased 2.3%, or $12 thousand and furniture and equipment increased $31 thousand, or 8.8% when comparing the three months ended December 31, 2019 to the same period in 2018. Other operating expense decreased by $12 thousand, or 0.6%, when comparing the three months ended December 31, 2019 to the same period in 2018. Other operating expenses for the three month period declined due to an FDIC insurance credit received during fourth quarter of 2019.
For the twelve months ended December 31, 2019, noninterest expense increased 0.6% to $28.7 million, compared to $28.5 million for the same period in 2018. For the twelve months ended December 31, 2019 salaries and employee benefit expenses decreased $315 thousand, or 1.7% when compared to the same period in 2018. Occupancy expense increased $149 thousand, or 7.3% and furniture and equipment increased $113 thousand, or 8.6% when comparing the twelve months ended December 31, 2019 to the same period in 2018. Other operating expenses increased by $232 thousand, or 3.4% during the twelve months ended December 31, 2019, compared to the same period in 2018. The increase in other operating expenses year-over-year was mostly related to higher franchise tax in 2019.
The decline in salaries and employee benefit expenses for both the three and twelve month periods was related to the consolidation of regional executives and elimination of certain redundant positions. The increase in occupancy and furniture and equipment expenses for both the three and twelve month periods was mostly related to additional rent and furniture expenses related to the newest locations in Prince William, Virginia and Tysons, Virginia.
Asset Quality
The Company had no non-accrual loans, no loans 30 days or more past due and no other real estate owned as of December 31, 2019. The Company also had no non-accrual loans and no loans 30 days or more past due as of December 31, 2018. At December 31, 2018, other real estate owned had a balance of $379 thousand. In February 2019, the other real estate owned was sold for $379 thousand. As of December 31, 2018, non-performing assets were 0.03% of total assets.
Troubled debt restructurings were $895 thousand at December 31, 2019, an increase of $42 thousand, from $853 thousand at December 31, 2018. All troubled debt restructurings were performing in accordance with their modified terms as of December 31, 2019 and December 31, 2018.
About John Marshall Bancorp, Inc.
John Marshall Bancorp, Inc. is the bank holding company for John Marshall Bank. John Marshall Bank is headquartered in Reston, Virginia with eight full-service branches located in Alexandria, Arlington, Loudoun, Prince William, Reston, Rockville, Tysons, and Washington, D.C. and one loan production office in Arlington, Virginia. The Company is dedicated to providing an exceptional customer experience and value to local businesses, business owners and consumers in the Washington DC Metro area. The Bank offers a comprehensive line of sophisticated banking products, services and a digital platform that rival those of the largest banks. Dedicated relationship managers serving as direct point-of-contact along with an experienced staff help achieve customer's financial goals. Learn more at www.johnmarshallbank.com.
This press release contains forward-looking statements within the meaning of the Securities and Exchange Act of 1934, as amended, including statements of goals, intentions, and expectations as to future trends, plans, events or results of Company operations and policies and regarding general economic conditions. In some cases, forward-looking statements can be identified by use of words such as "may," "will," "anticipates," "believes," "expects," "plans," "estimates," "potential," "continue," "should," and similar words or phrases. These statements are based upon current and anticipated economic conditions, nationally and in the Company's market, interest rates and interest rate policy, competitive factors, and other conditions which by their nature, are not susceptible to accurate forecast, and are subject to significant uncertainty. Because of these uncertainties and the assumptions on which this discussion and the forward-looking statements are based, actual future operations and results may differ materially from those indicated herein. Readers are cautioned against placing undue reliance on any such forward-looking statements. The Company's past results are not necessarily indicative of future performance.
John Marshall Bancorp, Inc. | ||||||||||||
Financial Highlights (Unaudited) | ||||||||||||
(Dollar amounts in thousands, except per share data) | ||||||||||||
|
|
|
|
|
|
|
||||||
At or For the Three Months Ended |
|
At or For the Twelve Months Ended |
||||||||||
December 31, |
|
December 31, |
||||||||||
2019 |
|
2018 |
|
2019 |
|
2018 |
||||||
Selected Balance Sheet Data | ||||||||||||
Cash and cash equivalents | $ |
7,471 |
$ |
7,853 |
$ |
7,471 |
$ |
7,853 |
||||
Total investment securities |
|
130,348 |
|
104,635 |
|
130,348 |
|
104,635 |
||||
Loans net of unearned income |
|
1,325,532 |
|
1,161,455 |
|
1,325,532 |
|
1,161,455 |
||||
Allowance for loan losses |
|
10,756 |
|
9,731 |
|
10,756 |
|
9,731 |
||||
Total assets |
|
1,581,883 |
|
1,394,621 |
|
1,581,883 |
|
1,394,621 |
||||
Non-interest bearing demand deposits |
|
273,459 |
|
222,299 |
|
273,459 |
|
222,299 |
||||
Interest bearing deposits |
|
1,035,245 |
|
916,069 |
|
1,035,245 |
|
916,069 |
||||
Total deposits |
|
1,308,704 |
|
1,138,368 |
|
1,308,704 |
|
1,138,368 |
||||
Shareholders' equity |
|
161,982 |
|
142,018 |
|
161,982 |
|
142,018 |
||||
Summary Results of Operations | ||||||||||||
Interest income | $ |
17,796 |
$ |
16,063 |
$ |
68,990 |
$ |
57,890 |
||||
Interest expense |
|
5,217 |
|
4,415 |
|
20,322 |
|
14,190 |
||||
Net interest income |
|
12,579 |
|
11,648 |
|
48,668 |
|
43,700 |
||||
Provision for loan losses |
|
360 |
|
403 |
# |
|
1,170 |
|
1,069 |
|||
Net interest income after provision for loan losses |
|
12,219 |
|
11,245 |
|
47,498 |
|
42,631 |
||||
Noninterest income |
|
315 |
|
303 |
|
1,335 |
|
1,237 |
||||
Noninterest expense |
|
7,018 |
|
7,702 |
|
28,701 |
|
28,522 |
||||
Income before income taxes |
|
5,516 |
|
3,846 |
|
20,132 |
|
15,346 |
||||
Net income |
|
4,472 |
|
3,031 |
|
15,921 |
|
12,174 |
||||
Per share Data and Shares Outstanding | ||||||||||||
Earnings per share - basic | $ |
0.34 |
$ |
0.24 |
$ |
1.22 |
$ |
0.95 |
||||
Earnings per share - diluted | $ |
0.33 |
$ |
0.22 |
$ |
1.17 |
$ |
0.89 |
||||
Tangible book value per share | $ |
12.34 |
$ |
11.01 |
$ |
12.34 |
$ |
11.01 |
||||
Weighted average common shares (basic) |
|
13,044,751 |
|
12,803,202 |
|
12,991,911 |
|
12,783,717 |
||||
Weighted average common shares (diluted) |
|
13,628,507 |
|
13,527,479 |
|
13,574,984 |
|
13,531,858 |
||||
Common shares outstanding at end of period |
|
13,127,661 |
|
12,900,125 |
|
13,127,661 |
|
12,900,125 |
||||
Performance Ratios | ||||||||||||
Return on average assets (annualized) |
|
1.14% |
|
0.89% |
|
1.08% |
|
0.95% |
||||
Return on average equity (annualized) |
|
11.05% |
|
8.57% |
|
10.41% |
|
8.98% |
||||
Net interest margin |
|
3.31% |
|
3.50% |
|
3.40% |
|
3.51% |
||||
Noninterest income as a percentage of average assets (annualized) |
|
0.08% |
|
0.09% |
|
0.09% |
|
0.10% |
||||
Noninterest expense to average assets (annualized) |
|
1.80% |
|
2.26% |
|
1.95% |
|
2.23% |
||||
Efficiency ratio |
|
54.4% |
|
64.4% |
|
57.4% |
|
63.5% |
||||
Asset Quality | ||||||||||||
Non-performing assets to total assets |
|
0.00% |
|
0.03% |
|
0.00% |
|
0.03% |
||||
Non-performing loans to total loans |
|
0.00% |
|
0.00% |
|
0.00% |
|
0.00% |
||||
Allowance for loan losses to non-performing loans |
|
N/M |
|
N/M |
|
N/M |
|
N/M |
||||
Allowance for loan losses to total loans |
|
0.81% |
|
0.84% |
|
0.81% |
|
0.84% |
||||
Net charge-offs to average loans (annualized) |
|
0.00% |
|
0.06% |
|
0.01% |
|
0.03% |
||||
Loans 30-89 days past due and accruing interest | $ |
- - |
$ |
- - |
$ |
- - |
$ |
- - |
||||
Non-accrual loans | $ |
- - |
$ |
- - |
$ |
- - |
$ |
- - |
||||
Other real estate owned | $ |
- - |
$ |
379 |
$ |
- - |
$ |
379 |
||||
Non-performing assets (1) | $ |
- - |
$ |
379 |
$ |
- - |
$ |
379 |
||||
Troubled debt restructurings (total) | $ |
895 |
$ |
853 |
$ |
895 |
$ |
853 |
||||
Performing in accordance with modified terms | $ |
895 |
$ |
853 |
$ |
895 |
$ |
853 |
||||
Not performing in accordance with modified terms | $ |
- - |
$ |
- - |
$ |
- - |
$ |
- - |
||||
Capital Ratios | ||||||||||||
Tangible equity / tangible assets |
|
10.2% |
|
10.2% |
|
10.2% |
|
10.2% |
||||
Total risk-based capital ratio |
|
13.7% |
|
13.9% |
|
13.7% |
|
13.9% |
||||
Tier 1 risk-based capital ratio |
|
11.2% |
|
11.2% |
|
11.2% |
|
11.2% |
||||
Leverage ratio |
|
10.4% |
|
11.2% |
|
10.4% |
|
11.2% |
||||
Common equity tier 1 ratio |
|
11.2% |
|
11.2% |
|
11.2% |
|
11.2% |
||||
Other Information | ||||||||||||
Number of full time equivalent employees |
|
131 |
|
140 |
|
131 |
|
140 |
||||
# Full service branch offices |
|
8 |
|
8 |
|
8 |
|
8 |
||||
# Loan production or limited service branch offices |
|
1 |
|
1 |
|
1 |
|
1 |
(1) Non-performing assets consist of non-accrual loans, loans 90 day or more past due and still accruing interest, and other real estate owned. Does not include troubled debt restructurings ("TDRs") which were accruing interest at the date indicated.
John Marshall Bancorp, Inc. | |||||||||||||
Consolidated Balance Sheets | |||||||||||||
(Dollar amounts in thousands, except per share data) | |||||||||||||
|
|
|
|
|
|
% Change |
|
|
|||||
December 31, |
|
September 30 |
|
December 31, |
|
Last Three |
|
Year Over |
|||||
2019 |
|
2019 |
|
2018 |
|
Months |
|
Year |
|||||
Assets |
(Unaudited) | (Unaudited) | (Unaudited) | ||||||||||
Cash and due from banks | $ |
7,471 |
$ |
11,305 |
$ |
7,853 |
-33.9% |
-4.9% |
|||||
Federal funds sold |
|
- - |
|
- - |
|
126 |
N/M |
N/M |
|||||
Interest-bearing deposits in banks |
|
87,019 |
|
98,000 |
|
93,716 |
-11.2% |
-7.1% |
|||||
Securities available-for-sale, at fair value |
|
122,729 |
|
107,951 |
|
61,055 |
13.7% |
101.0% |
|||||
Securities held-to-maturity, fair value of $35,589 at 12/31/2018 |
|
- - |
|
|
- - |
|
|
36,177 |
|
N/M |
|
N/M |
|
Restricted securities, at cost |
|
7,188 |
|
6,544 |
|
7,283 |
9.8% |
-1.3% |
|||||
Equity securities, at fair value |
|
431 |
|
384 |
|
120 |
12.2% |
259.2% |
|||||
Loans net of unearned income |
|
1,325,532 |
|
1,255,877 |
|
1,161,455 |
5.5% |
14.1% |
|||||
Allowance for loan losses |
|
(10,756) |
|
(10,396) |
|
(9,731) |
3.5% |
10.5% |
|||||
Net loans |
|
1,314,776 |
|
1,245,481 |
|
1,151,724 |
5.6% |
14.2% |
|||||
Bank premises and equipment, net |
|
2,318 |
|
2,391 |
|
2,852 |
-3.1% |
-18.7% |
|||||
Accrued interest receivable |
|
4,010 |
|
3,715 |
|
3,623 |
7.9% |
10.7% |
|||||
Bank owned life insurance |
|
20,118 |
|
19,993 |
|
19,617 |
0.6% |
2.6% |
|||||
Other real estate owned |
|
- - |
|
- - |
|
379 |
N/M |
N/M |
|||||
Right of use assets |
|
7,254 |
|
8,515 |
|
- - |
-14.8% |
N/M |
|||||
Other assets |
|
8,569 |
|
8,944 |
|
10,096 |
-4.2% |
-15.1% |
|||||
Total assets | $ |
1,581,883 |
$ |
1,513,223 |
$ |
1,394,621 |
4.5% |
13.4% |
|||||
Liabilities and Shareholders' Equity | |||||||||||||
Liabilities |
|||||||||||||
Deposits: | |||||||||||||
Non-interest bearing demand deposits | $ |
273,459 |
$ |
254,359 |
$ |
222,299 |
7.5% |
23.0% |
|||||
Interest bearing demand deposits |
|
428,529 |
|
424,690 |
|
367,656 |
0.9% |
16.6% |
|||||
Savings deposits |
|
29,208 |
|
26,198 |
|
6,987 |
11.5% |
318.0% |
|||||
Time deposits |
|
577,508 |
|
565,687 |
|
541,426 |
2.1% |
6.7% |
|||||
Total deposits |
|
1,308,704 |
|
1,270,934 |
|
1,138,368 |
3.0% |
15.0% |
|||||
Federal funds purchased |
|
12,000 |
|
- - |
|
15,001 |
N/M |
-20.0% |
|||||
Federal Home Loan Bank advances |
|
62,000 |
|
47,000 |
|
68,500 |
31.9% |
-9.5% |
|||||
Subordinated debt |
|
24,630 |
|
24,618 |
|
24,581 |
0.0% |
0.2% |
|||||
Accrued interest payable |
|
1,106 |
|
1,086 |
|
1,243 |
1.8% |
-11.0% |
|||||
Lease liabilities |
|
7,474 |
|
8,782 |
|
- - |
-14.9% |
N/M |
|||||
Other liabilities |
|
3,987 |
|
3,464 |
|
4,910 |
15.1% |
-18.8% |
|||||
Total liabilities |
|
1,419,901 |
|
1,355,884 |
|
1,252,603 |
4.7% |
13.4% |
|||||
Shareholders' Equity | |||||||||||||
Preferred stock, par value $0.01 per share; authorized 1,000,000 shares; none issued |
|
- - |
|
|
- - |
|
|
- - |
|
- - |
|
- - |
|
Common stock, nonvoting, par value $0.01 per share; authorized 1,000,000 shares; none issued |
|
- - |
|
|
- - |
|
|
- - |
|
- - |
|
- - |
|
Common stock, voting, par value $0.01 per share; authorized 20,000,000 shares; issued and outstanding, 13,127,661 at 12/31/2019 including 51,548 unvested shares, 13,076,081 shares at 9/30/2019 including 49,068 unvested shares and 12,900,125 at 12/31/2018, including 86,400 unvested shares |
|
131 |
|
|
130 |
|
|
128 |
|
0.8% |
|
2.3% |
|
Additional paid-in capital |
|
87,435 |
|
86,766 |
|
85,127 |
0.8% |
2.7% |
|||||
Retained earnings |
|
73,639 |
|
69,168 |
|
57,718 |
6.5% |
27.6% |
|||||
Accumulated other comprehensive income (loss) |
|
777 |
|
1,275 |
|
(955) |
39.1% |
181.4% |
|||||
Total shareholders' equity |
|
161,982 |
|
157,339 |
|
142,018 |
3.0% |
14.1% |
|||||
Total liabilities and shareholders' equity | $ |
1,581,883 |
$ |
1,513,223 |
$ |
1,394,621 |
4.5% |
13.4% |
John Marshall Bancorp, Inc. | ||||||||||||||||
Consolidated Statements of Income | ||||||||||||||||
Dollar amounts in thousands, except per share data) | ||||||||||||||||
Three Months Ended |
|
|
|
Twelve Months Ended |
|
|
||||||||||
December 31, |
|
|
|
December 31, |
|
|
||||||||||
2019 |
|
2018 |
|
% Change |
|
2019 |
|
2018 |
|
% Change |
||||||
(Unaudited) |
|
(Unaudited) |
|
|
|
(Unaudited) |
|
(Unaudited) |
|
|
||||||
Interest and Dividend Income | ||||||||||||||||
Interest and fees on loans | $ |
16,531 |
$ |
14,924 |
10.8% |
$ |
63,920 |
$ |
53,716 |
19.0% |
||||||
Interest on investment securities, taxable |
|
715 |
|
490 |
45.9% |
|
2,528 |
|
1,757 |
43.9% |
||||||
Interest on investment securities, tax-exempt |
|
19 |
|
79 |
-75.9% |
|
135 |
|
330 |
-59.1% |
||||||
Dividends |
|
95 |
|
109 |
-12.8% |
|
424 |
|
470 |
-9.8% |
||||||
Interest on federal funds sold |
|
- - |
|
1 |
N/M |
|
1 |
|
1 |
0.0% |
||||||
Interest on deposits in banks |
|
436 |
|
460 |
-5.2% |
|
1,982 |
|
1,616 |
22.6% |
||||||
Total interest and dividend income |
|
17,796 |
|
16,063 |
10.8% |
|
68,990 |
|
57,890 |
19.2% |
||||||
Interest Expense | ||||||||||||||||
Deposits |
|
4,645 |
|
3,755 |
23.7% |
|
17,817 |
|
11,307 |
57.6% |
||||||
Federal Home Loan Bank advances |
|
199 |
|
287 |
-30.7% |
|
1,015 |
|
1,393 |
-27.1% |
||||||
Subordinated debt |
|
372 |
|
372 |
0.0% |
|
1,487 |
|
1,487 |
0.0% |
||||||
Other short-term borrowings |
|
1 |
|
1 |
0.0% |
|
3 |
|
3 |
0.0% |
||||||
Total interest expense |
|
5,217 |
|
4,415 |
18.2% |
|
20,322 |
|
14,190 |
43.2% |
||||||
Net interest income |
|
12,579 |
|
11,648 |
8.0% |
|
48,668 |
|
43,700 |
11.4% |
||||||
Provision for loan losses |
|
360 |
|
403 |
-10.7% |
|
1,170 |
|
1,069 |
9.4% |
||||||
Net interest income after provision for loan losses |
|
12,219 |
|
11,245 |
8.7% |
|
47,498 |
|
42,631 |
11.4% |
||||||
Noninterest Income | ||||||||||||||||
Service charges on deposit accounts |
|
132 |
|
139 |
-5.0% |
|
556 |
|
508 |
9.4% |
||||||
Bank owned life insurance |
|
125 |
|
133 |
-6.0% |
|
501 |
|
525 |
-4.6% |
||||||
Other service charges and fees |
|
41 |
|
44 |
-6.8% |
|
180 |
|
194 |
-7.2% |
||||||
Gain on sale of securities |
|
- - |
|
- - |
N/M |
|
14 |
|
- - |
N/M |
||||||
Other operating income (loss) |
|
17 |
|
(13) |
-230.8% |
|
84 |
|
10 |
740.0% |
||||||
Total noninterest income |
|
315 |
|
303 |
4.0% |
|
1,335 |
|
1,237 |
7.9% |
||||||
Noninterest Expenses | ||||||||||||||||
Salaries and employee benefits |
|
4,223 |
|
4,914 |
-14.1% |
|
18,012 |
|
18,327 |
-1.7% |
||||||
Occupancy expense of premises |
|
517 |
|
529 |
-2.3% |
|
2,179 |
|
2,030 |
7.3% |
||||||
Furniture and equipment expenses |
|
382 |
|
351 |
8.8% |
|
1,420 |
|
1,307 |
8.6% |
||||||
Other operating expenses |
|
1,896 |
|
1,908 |
-0.6% |
|
7,090 |
|
6,858 |
3.4% |
||||||
Total noninterest expenses |
|
7,018 |
|
7,702 |
-8.9% |
|
28,701 |
|
28,522 |
0.6% |
||||||
Income before income taxes |
|
5,516 |
|
3,846 |
43.4% |
|
20,132 |
|
15,346 |
31.2% |
||||||
Income tax expense |
|
1,044 |
|
815 |
28.1% |
|
4,211 |
|
3,172 |
32.8% |
||||||
Net income | $ |
4,472 |
$ |
3,031 |
47.5% |
$ |
15,921 |
$ |
12,174 |
30.8% |
||||||
Earnings Per Share | ||||||||||||||||
Basic | $ |
0.34 |
$ |
0.24 |
41.7% |
$ |
1.22 |
$ |
0.95 |
28.4% |
||||||
Diluted | $ |
0.33 |
$ |
0.22 |
50.0% |
$ |
1.17 |
$ |
0.89 |
31.5% |
John Marshall Bancorp, Inc. | |||||||||||||||||||
Loan, Deposit and Borrowing Detail (Unaudited) | |||||||||||||||||||
(Dollar amounts in thousands) | |||||||||||||||||||
December 31, 2019 | September 30, 2019 | December 31, 2018 | Percentage Change | ||||||||||||||||
Loans |
$ Amount | % of Total | $ Amount | % of Total | $ Amount | % of Total | Last 3 Mos | Last 12 Mos | |||||||||||
Mortgage loans on real estate | |||||||||||||||||||
Commercial | $ |
794,142 |
59.9% |
$ |
761,004 |
60.6% |
$ |
747,342 |
64.2% |
4.4% |
6.3% |
||||||||
Construction and land development |
|
252,079 |
19.0% |
|
246,561 |
19.6% |
|
204,986 |
17.6% |
2.2% |
23.0% |
||||||||
Residential |
|
202,512 |
15.3% |
|
176,661 |
14.0% |
|
143,811 |
12.4% |
14.6% |
40.8% |
||||||||
Total mortgage loans on real estate | $ |
1,248,733 |
94.2% |
$ |
1,184,226 |
94.2% |
$ |
1,096,139 |
94.2% |
5.4% |
13.9% |
||||||||
Commercial loans |
|
76,096 |
5.8% |
|
71,416 |
5.7% |
|
65,815 |
5.7% |
6.6% |
15.6% |
||||||||
Consumer loans |
|
653 |
0.0% |
|
855 |
0.1% |
|
1,198 |
0.1% |
-23.6% |
-45.5% |
||||||||
Total loans | $ |
1,325,482 |
100.0% |
$ |
1,256,497 |
100.0% |
$ |
1,163,152 |
100.0% |
5.5% |
14.0% |
||||||||
Less: Allowance for loan losses |
|
(10,756) |
|
(10,396) |
|
(9,731) |
|||||||||||||
Net deferred loan costs (fees) |
|
50 |
|
(620) |
|
(1,697) |
|||||||||||||
Net loans | $ |
1,314,776 |
$ |
1,245,481 |
$ |
1,151,724 |
|||||||||||||
December 31, 2019 | September 30, 2019 | December 31, 2018 | Percentage Change | ||||||||||||||||
Deposits |
$ Amount | % of Total | $ Amount | % of Total | $ Amount | % of Total | Last 3 Mos | Last 12 Mos | |||||||||||
Noninterest-bearing demand deposits | $ |
273,459 |
20.9% |
$ |
254,359 |
20.0% |
$ |
222,299 |
19.5% |
7.5% |
23.0% |
||||||||
Interest-bearing demand deposits: | |||||||||||||||||||
NOW accounts |
|
60,835 |
4.7% |
|
66,015 |
5.2% |
|
44,884 |
3.9% |
-7.8% |
35.5% |
||||||||
Money market accounts |
|
180,253 |
13.8% |
|
183,324 |
14.4% |
|
186,626 |
16.4% |
-1.7% |
-3.4% |
||||||||
Savings accounts |
|
29,208 |
2.2% |
|
26,198 |
2.0% |
|
6,987 |
0.6% |
11.5% |
318.0% |
||||||||
Certificates of deposit | |||||||||||||||||||
$250,000 or more |
|
255,220 |
19.5% |
|
245,173 |
19.3% |
|
232,491 |
20.4% |
4.1% |
9.8% |
||||||||
Less than $250,000 |
|
128,283 |
9.8% |
|
124,109 |
9.8% |
|
108,911 |
9.6% |
3.4% |
17.8% |
||||||||
QwickRate® Certificates of deposit |
|
18,030 |
1.4% |
|
17,851 |
1.4% |
|
20,642 |
1.8% |
1.0% |
-12.7% |
||||||||
ICS® |
|
187,439 |
14.3% |
|
175,349 |
13.8% |
|
135,135 |
11.9% |
6.9% |
38.7% |
||||||||
CDARS® |
|
50,884 |
3.9% |
|
65,877 |
5.2% |
|
112,196 |
9.9% |
-22.8% |
-54.6% |
||||||||
Brokered deposits |
|
125,093 |
9.6% |
|
112,679 |
8.9% |
|
68,197 |
6.0% |
11.0% |
83.4% |
||||||||
Total deposits | $ |
1,308,704 |
100.0% |
$ |
1,270,934 |
100.0% |
$ |
1,138,368 |
100.0% |
3.0% |
15.0% |
||||||||
Borrowings |
|||||||||||||||||||
Federal funds purchased | $ |
12,000 |
12.1% |
$ |
- - |
0.0% |
$ |
15,001 |
13.9% |
N/M |
-20.0% |
||||||||
Federal Home Loan Bank advances |
|
62,000 |
62.9% |
|
47,000 |
65.6% |
|
68,500 |
63.4% |
31.9% |
-9.5% |
||||||||
Subordinated debt |
|
24,630 |
25.0% |
|
24,618 |
34.4% |
|
24,581 |
22.7% |
0.0% |
0.2% |
||||||||
Total borrowings | $ |
98,630 |
100.0% |
$ |
71,618 |
100.0% |
$ |
108,082 |
100.0% |
37.7% |
-8.7% |
||||||||
Total deposits and borrowings | $ |
1,407,334 |
$ |
1,342,552 |
$ |
1,246,450 |
4.8% |
12.9% |
|||||||||||
Core customer funding sources (1) | $ |
1,165,581 |
82.8% |
$ |
1,140,404 |
85.0% |
$ |
1,049,529 |
84.2% |
2.2% |
11.1% |
||||||||
Wholesale funding sources (2) |
|
217,123 |
15.4% |
|
177,530 |
13.2% |
|
172,340 |
13.8% |
22.3% |
26.0% |
||||||||
Subordinated debt (3) |
|
24,630 |
1.8% |
|
24,618 |
1.8% |
|
24,581 |
2.0% |
0.0% |
0.2% |
||||||||
Total funding sources | $ |
1,407,334 |
100.0% |
$ |
1,342,552 |
100.0% |
$ |
1,246,450 |
100.0% |
4.8% |
12.9% |
(1) Includes ICS and CDARS(r), which are all reciprocal deposits maintained by customers.
(2) Consists of QwickRate(r) certificates of deposit, brokered deposits, federal funds purchased and Federal Home Loan Bank advances.
(3) Subordinated debt obligation qualifies as Tier 2 capital.
John Marshall Bancorp, Inc. | ||||||||||||||||
Average Balance Sheets, Interest and Rates (unaudited) | ||||||||||||||||
(Dollar amounts in thousands) | ||||||||||||||||
Three Months Ended December 31, 2019 | Three Months Ended December 31, 2018 | |||||||||||||||
Interest | Average | Interest | Average | |||||||||||||
Average | Income- | Yields | Average | Income- | Yields | |||||||||||
Balance | Expense | /Rates | Balance | Expense | /Rates | |||||||||||
Assets | ||||||||||||||||
Securities | $ |
122,228 |
$ |
829 |
2.69% |
$ |
104,961 |
$ |
678 |
2.56% |
||||||
Loans, net of unearned income |
|
1,284,437 |
|
16,531 |
5.11% |
|
1,134,841 |
|
14,924 |
5.22% |
||||||
Interest-bearing deposits in other banks |
|
103,194 |
|
436 |
1.68% |
|
80,437 |
|
460 |
2.27% |
||||||
Federal funds sold |
|
- - |
|
- - |
N/M |
|
128 |
|
1 |
3.10% |
||||||
Total interest-earning assets | $ |
1,509,859 |
$ |
17,796 |
4.68% |
$ |
1,320,367 |
$ |
16,063 |
4.83% |
||||||
Other assets |
|
40,123 |
|
33,632 |
||||||||||||
Total assets | $ |
1,549,982 |
$ |
1,353,999 |
||||||||||||
Liabilities & Shareholders' equity | ||||||||||||||||
Interest-bearing deposits | ||||||||||||||||
NOW accounts | $ |
151,188 |
$ |
413 |
1.08% |
$ |
91,449 |
$ |
235 |
1.02% |
||||||
Money market accounts |
|
285,440 |
|
970 |
1.35% |
|
268,554 |
|
973 |
1.44% |
||||||
Savings accounts |
|
28,541 |
|
101 |
1.40% |
|
7,302 |
|
4 |
0.22% |
||||||
Time deposits |
|
563,712 |
|
3,161 |
2.22% |
|
527,178 |
|
2,543 |
1.91% |
||||||
Total interest-bearing deposits | $ |
1,028,881 |
$ |
4,645 |
1.79% |
$ |
894,483 |
$ |
3,755 |
1.67% |
||||||
Federal funds purchased | $ |
130 |
$ |
1 |
3.05% |
$ |
163 |
$ |
1 |
2.43% |
||||||
Subordinated debt |
|
24,622 |
|
372 |
5.99% |
|
24,573 |
|
372 |
6.01% |
||||||
Other borrowed funds |
|
44,859 |
|
199 |
1.76% |
|
64,022 |
|
287 |
1.78% |
||||||
Total interest-bearing liabilities | $ |
1,098,492 |
$ |
5,217 |
1.88% |
$ |
983,241 |
$ |
4,415 |
1.78% |
||||||
Demand deposits and other liabilities |
|
290,969 |
|
230,384 |
||||||||||||
Total liabilities | $ |
1,389,461 |
$ |
1,213,625 |
||||||||||||
Shareholders' equity |
|
160,521 |
|
140,374 |
||||||||||||
Total liabilities and shareholders' equity | $ |
1,549,982 |
$ |
1,353,999 |
||||||||||||
Interest rate spread | 2.80% |
3.05% |
||||||||||||||
Net interest income and margin | $ |
12,579 |
3.31% |
$ |
11,648 |
3.50% |
||||||||||
Twelve Months Ended December 31, 2019 | Twelve Months Ended December 31, 2018 | |||||||||||||||
Interest | Average | Interest | Average | |||||||||||||
Average | Income- | Yields | Average | Income- | Yields | |||||||||||
Balance | Expense | /Rates | Balance | Expense | /Rates | |||||||||||
Assets | ||||||||||||||||
Securities | $ |
114,127 |
$ |
3,087 |
2.70% |
$ |
104,214 |
$ |
2,557 |
2.45% |
||||||
Loans, net of unearned income |
|
1,225,187 |
|
63,920 |
5.22% |
|
1,056,324 |
|
53,716 |
5.09% |
||||||
Interest-bearing deposits in other banks |
|
91,997 |
|
1,982 |
2.15% |
|
83,935 |
|
1,616 |
1.93% |
||||||
Federal funds sold |
|
54 |
|
1 |
1.84% |
|
83 |
|
1 |
1.20% |
||||||
Total interest-earning assets | $ |
1,431,365 |
$ |
68,990 |
4.82% |
$ |
1,244,556 |
$ |
57,890 |
4.65% |
||||||
Other assets |
|
39,202 |
|
32,479 |
||||||||||||
Total assets | $ |
1,470,567 |
$ |
1,277,035 |
||||||||||||
Liabilities & Shareholders' equity | ||||||||||||||||
Interest-bearing deposits | ||||||||||||||||
NOW accounts | $ |
139,529 |
$ |
1,661 |
1.19% |
$ |
75,301 |
$ |
555 |
0.74% |
||||||
Money market accounts |
|
279,256 |
|
4,143 |
1.48% |
|
234,173 |
|
2,577 |
1.10% |
||||||
Savings accounts |
|
21,755 |
|
295 |
1.36% |
|
6,953 |
|
16 |
0.23% |
||||||
Time deposits |
|
533,633 |
|
11,718 |
2.20% |
|
495,206 |
|
8,159 |
1.65% |
||||||
Total interest-bearing deposits | $ |
974,173 |
$ |
17,817 |
1.83% |
$ |
811,633 |
$ |
11,307 |
1.39% |
||||||
Federal funds purchased | $ |
107 |
$ |
3 |
2.80% |
$ |
123 |
$ |
3 |
2.44% |
||||||
Subordinated debt |
|
24,604 |
|
1,487 |
6.04% |
|
24,554 |
|
1,487 |
6.06% |
||||||
Other borrowed funds |
|
52,333 |
|
1,015 |
1.94% |
|
87,503 |
|
1,393 |
1.59% |
||||||
Total interest-bearing liabilities | $ |
1,051,217 |
$ |
20,322 |
1.93% |
$ |
923,813 |
$ |
14,190 |
1.54% |
||||||
Demand deposits and other liabilities |
|
266,447 |
|
217,712 |
||||||||||||
Total liabilities | $ |
1,317,664 |
$ |
1,141,525 |
||||||||||||
Shareholders' equity |
|
152,903 |
|
135,510 |
||||||||||||
Total liabilities and shareholders' equity | $ |
1,470,567 |
$ |
1,277,035 |
||||||||||||
Interest rate spread | 2.89% |
3.11% |
||||||||||||||
Net interest income and margin | $ |
48,668 |
3.40% |
$ |
43,700 |
3.51% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20200122005105/en/
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