John Marshall Bancorp, Inc. (JMSB) (the “Company”), parent company of John Marshall Bank (the “Bank”), reported its financial results for the three and nine months ended September 30, 2019.
Selected Highlights
Record Earnings – Net income increased 43.9% to $4.0 million for three months ended September 30, 2019, compared to $2.8 million for the three months ended September 30, 2018. Earnings per diluted share were $0.29 for the three months ended September 30, 2019, a 38.1% increase from to $0.21 per diluted share for the three months ended September 30, 2018. On a year-to-date basis, net income increased 25.2% to $11.4 million for the nine months ended September 30, 2019, compared to $9.1 million for the same period in 2018. Earnings per diluted share were $0.84 for the nine months ended September 30, 2019, a 25.4% increase from $0.67 per diluted share for the nine months ended September 30, 2018.
Enhanced Returns – The Return on Average Assets (“ROAA”) increased from 0.86% for the three months ended September 30, 2018 to 1.07% for the three months ended September 30, 2019. The Return on Average Equity (“ROAE”) increased from 8.09% for the three months ended September 30, 2018, to 10.26% for the three months ended September 30, 2019. Year-to-date ROAA and ROAE were 1.06% and 10.18%, respectively, for the nine months ended September 30, 2019, compared to 0.98% and 9.13%, respectively, for the nine months ended September 30, 2018. This marks the 4th consecutive quarter of increasing returns.
Excellent Asset Quality – Non-performing assets represented 0.09% of total assets and non-performing loans were 0.11% of total loans as of September 30, 2019. There were no charge-offs during the third quarter of 2019 and $145 thousand in charge-offs, or 0.02% of loans, for the nine months ended September 30, 2019. The Company’s allowance for loan losses was 7.4x non-performing loans at September 30, 2019.
Solid Growth – Total assets increased 14.4% from $1.32 billion at September 30, 2018 to $1.51 billion at September 30, 2019. Gross loans, net of unearned income, increased 13.5% from $1.11 billion at September 30, 2018 to $1.26 billion at September 30, 2019. Total deposits grew 17.0% from $1.09 billion at September 30, 2018 to $1.27 billion at September 30, 2019.
Record Quarterly Net Interest Income – Despite the Federal Reserve dropping the federal funds target rate 25 basis points on both July 30, 2019 and September 18, 2019, the Company reported net interest income during the third quarter of 2019 of $12.4 million, a 14.2% increase from $10.9 million for the same period in 2018.
Continued Improvement in Efficiency – Revenues (net interest income and non-interest income) were $12.8 million or 14.2% greater in the third quarter of 2019 than the third quarter of 2018. Non-interest expenses or overhead was 2.4% greater than a year ago. As a result, the efficiency ratio improved from 64.6% in the third quarter of 2018 to 57.9% in the third quarter of 2019. Year-to-date, the efficiency ratio was 58.4% for the nine months ended September 30, 2019, down from 63.1% for the same period in 2018. Non-interest expense to average assets was 1.96% for the three months ended September 30, 2019, down 26 bps when compared to the same period in 2018.
Improved Tangible Book Value – Tangible book value per share at September 30, 2019 was $12.03, a 12.3% increase from $10.71 at September 30, 2018.
Chris Bergstrom, President and Chief Executive Officer, commented “The Company experienced record payoffs/paydowns and two rate cuts during the third quarter. The payoffs/paydowns, while higher than normal, were consistent with original underwriting expectations. Despite these challenges, our plan to diversify the balance sheet and improve core funding is working, as evidenced by excellent asset quality, a strong balance sheet and record earnings. I am comfortable with our pipeline of expected business and believe that we are well-positioned for continued profitable growth.”
Company profile
John Marshall Bancorp, Inc. operates as a bank holding company. The bank offers deposit and checking services, loans and lending solutions, cash management, and credit cards. The company was founded on April 21, 2016 and is headquartered in Reston, VA.
Source Business wire.
P/E ratio 17.10
Selected Highlights
Record Earnings – Net income increased 43.9% to $4.0 million for three months ended September 30, 2019, compared to $2.8 million for the three months ended September 30, 2018. Earnings per diluted share were $0.29 for the three months ended September 30, 2019, a 38.1% increase from to $0.21 per diluted share for the three months ended September 30, 2018. On a year-to-date basis, net income increased 25.2% to $11.4 million for the nine months ended September 30, 2019, compared to $9.1 million for the same period in 2018. Earnings per diluted share were $0.84 for the nine months ended September 30, 2019, a 25.4% increase from $0.67 per diluted share for the nine months ended September 30, 2018.
Enhanced Returns – The Return on Average Assets (“ROAA”) increased from 0.86% for the three months ended September 30, 2018 to 1.07% for the three months ended September 30, 2019. The Return on Average Equity (“ROAE”) increased from 8.09% for the three months ended September 30, 2018, to 10.26% for the three months ended September 30, 2019. Year-to-date ROAA and ROAE were 1.06% and 10.18%, respectively, for the nine months ended September 30, 2019, compared to 0.98% and 9.13%, respectively, for the nine months ended September 30, 2018. This marks the 4th consecutive quarter of increasing returns.
Excellent Asset Quality – Non-performing assets represented 0.09% of total assets and non-performing loans were 0.11% of total loans as of September 30, 2019. There were no charge-offs during the third quarter of 2019 and $145 thousand in charge-offs, or 0.02% of loans, for the nine months ended September 30, 2019. The Company’s allowance for loan losses was 7.4x non-performing loans at September 30, 2019.
Solid Growth – Total assets increased 14.4% from $1.32 billion at September 30, 2018 to $1.51 billion at September 30, 2019. Gross loans, net of unearned income, increased 13.5% from $1.11 billion at September 30, 2018 to $1.26 billion at September 30, 2019. Total deposits grew 17.0% from $1.09 billion at September 30, 2018 to $1.27 billion at September 30, 2019.
Record Quarterly Net Interest Income – Despite the Federal Reserve dropping the federal funds target rate 25 basis points on both July 30, 2019 and September 18, 2019, the Company reported net interest income during the third quarter of 2019 of $12.4 million, a 14.2% increase from $10.9 million for the same period in 2018.
Continued Improvement in Efficiency – Revenues (net interest income and non-interest income) were $12.8 million or 14.2% greater in the third quarter of 2019 than the third quarter of 2018. Non-interest expenses or overhead was 2.4% greater than a year ago. As a result, the efficiency ratio improved from 64.6% in the third quarter of 2018 to 57.9% in the third quarter of 2019. Year-to-date, the efficiency ratio was 58.4% for the nine months ended September 30, 2019, down from 63.1% for the same period in 2018. Non-interest expense to average assets was 1.96% for the three months ended September 30, 2019, down 26 bps when compared to the same period in 2018.
Improved Tangible Book Value – Tangible book value per share at September 30, 2019 was $12.03, a 12.3% increase from $10.71 at September 30, 2018.
Chris Bergstrom, President and Chief Executive Officer, commented “The Company experienced record payoffs/paydowns and two rate cuts during the third quarter. The payoffs/paydowns, while higher than normal, were consistent with original underwriting expectations. Despite these challenges, our plan to diversify the balance sheet and improve core funding is working, as evidenced by excellent asset quality, a strong balance sheet and record earnings. I am comfortable with our pipeline of expected business and believe that we are well-positioned for continued profitable growth.”
Company profile
John Marshall Bancorp, Inc. operates as a bank holding company. The bank offers deposit and checking services, loans and lending solutions, cash management, and credit cards. The company was founded on April 21, 2016 and is headquartered in Reston, VA.
Source Business wire.
P/E ratio 17.10