John Marshall Bancorp, Inc. Reports Continuing Strong Momentum and Growth in Margin, Core Deposits and Loan Demand Drives 28% Increase in Net Income. Asset Quality Remains Pristine.

RESTON, VA--( BUSINESS WIRE)--John Marshall Bancorp, Inc. (Nasdaq: JMSB) (the “Company”), parent company of John Marshall Bank (the “Bank”), reported net income of $5.4 million for the quarter ended September 30, 2025 compared to $4.2 million for the quarter ended September 30, 2024, an increase of $1.2 million or 27.6%. Diluted earnings per common share were $0.38 for the quarter ended September 30, 2025 compared to $0.30 for the quarter ended September 30, 2024, an increase of 26.7%.

Selected Highlights

Chris Bergstrom, President and Chief Executive Officer, commented, “The Company is on track to produce a significant increase in loan commitments in 2025. These commitments continue to convert into loan balances. Our year-to-date gross loan production is 34% ahead of last year. Rigorous underwriting and prudent growth take precedence over growth for growth’s sake. During the third quarter, we increased the volume and quality of our funding. We believe that additional Federal Open Market Committee rate reductions and a continuing normalization of the yield curve could enhance our performance trend by increasing loan demand, lowering the cost of funds and further improving net interest margin and profitability. John Marshall has the capital, liquidity, market opportunity and team to support growth and, we believe, increasing shareholder value. The strength and preparedness of our balance sheet enabled us to increase earnings 28% this quarter. We believe having an unfettered balance sheet allows us to focus on organic growth, consider mergers and acquisitions, as appropriate, and drive increased growth and returns.”

Balance Sheet, Liquidity and Credit Quality

Total assets were $2.32 billion at September 30, 2025, $2.23 billion at December 31, 2024, and $2.27 billion at September 30, 2024. Total assets have increased $89.6 million or 4.0% and $50.2 million or 2.2% since December 31, 2024 and September 30, 2024, respectively.

Total loans, net of unearned income, were $1.94 billion at September 30, 2025, $1.87 billion at December 31, 2024, and $1.84 billion at September 30, 2024. Total loans, net of unearned income have increased $65.9 million or 4.7% annualized since December 31, 2024 and $95.5 million or 5.2% since September 30, 2024. Total loans, net of unearned income, increased $21.2 million or 1.1% to $1.94 billion at September 30, 2025, compared to $1.92 billion at June 30, 2025. The increase in loans from June 30, 2025, was primarily attributable to growth in residential mortgage loans, commercial owner-occupied real estate loans, and construction & development loans. All other portfolios remained relatively unchanged during the most recent quarter. Refer to the Loan, Deposit and Borrowing Detail table for further information.

The carrying value of the Company’s fixed income securities portfolio was $205.7 million at September 30, 2025, $222.3 million at December 31, 2024 and $237.5 million at September 30, 2024. The decrease in carrying value of the Company’s fixed income securities portfolio since September 30, 2024 was primarily attributable to maturities and the amortization of the portfolio. As of September 30, 2025, 95.1% of our bond portfolio carried the implied guarantee of the United States government or one of its agencies. At September 30, 2025, 65.1% of the fixed income portfolio was invested in amortizing bonds, which provides the Company with a source of steady cash flow. At September 30, 2025, the fixed income portfolio had an estimated weighted average life of 4.1 years. The available-for-sale portfolio comprised approximately 59% of the fixed income securities portfolio and had a weighted average life of 3.1 years at September 30, 2025. The held-to-maturity portfolio comprised approximately 41% of the fixed income securities portfolio and had a weighted average life of 5.4 years at September 30, 2025.

The Company’s balance sheet remains highly liquid. The Company’s liquidity position, defined as the sum of cash, unencumbered securities and available secured borrowing capacity, totaled $826.7 million as of September 30, 2025 compared to $755.6 million as of June 30, 2025 and represented 35.6% and 33.3% of total assets, respectively. In addition to available secured borrowing capacity, the Bank had available federal funds lines of $110.0 million at September 30, 2025.

Total deposits were $1.97 billion at September 30, 2025, $1.89 billion at December 31, 2024 and $1.94 billion at September 30, 2024. During the most recent quarter, total deposits increased $71.9 million or 3.8% when compared to June 30, 2025 primarily due to a 7.2% or $24.3 million increase in money market accounts, a 4.9% or $21.1 million increase in core time deposits, and a 1.9% or $8.3 million increase in non-interest bearing demand deposits. As further detailed in the tables included in this release, core funding sources have increased $71.9 million, while wholesale funding sources have decreased $16.5 million since June 30, 2025. As of September 30, 2025, the Company had $682.8 million of deposits that were not insured or not collateralized compared to $714.2 million at September 30, 2024.

Federal Home Loan Bank (“FHLB”) advances were $56.0 million as of September 30, 2025, December 31, 2024 and September 30, 2024. The three FHLB advances have a weighted average fixed interest rate of 3.99%. In addition to outstanding FHLB advances, total borrowings as of September 30, 2025 included subordinated debt totaling $24.9 million. During the most recent quarter, the Company repaid the $16.5 million of federal funds purchased that were outstanding as of June 30, 2025.

Shareholders’ equity increased $16.6 million or 6.8% to $259.7 million at September 30, 2025 compared to $243.1 million at September 30, 2024. Book value per share was $18.27 as of September 30, 2025 compared to $17.07 as of September 30, 2024, an increase of 7.0%. The year-over-year change in book value per share was primarily due to the Company’s earnings over the previous twelve months and a decrease in accumulated other comprehensive loss. This increase was partially offset by cash dividends paid and increased share count from shareholder option exercises and restricted share award issuances. The decrease in accumulated other comprehensive loss was attributable to an increase in the market value of our available-for-sale investment portfolio.

The Bank’s capital ratios remained well above regulatory thresholds for well-capitalized banks. As of September 30, 2025, the Bank’s total risk-based capital ratio was 16.6%, compared to 16.2% at December 31, 2024 and 16.3% at September 30, 2024. As outlined below, the Bank would continue to remain well above regulatory thresholds for well-capitalized banks at September 30, 2025 in the hypothetical scenario where the entire bond portfolio was sold at fair market value and any losses realized (Non-GAAP).

Bank Regulatory Capital Ratios (As Reported)

Well-Capitalized Threshold

September 30, 2025

December 31, 2024

September 30, 2024

Total risk-based capital ratio

10.0

16.6

16.2

16.3

Tier 1 risk-based capital ratio

8.0

15.5

15.2

15.3

Common equity tier 1 ratio

6.5

15.5

15.2

15.3

Leverage ratio

5.0

12.7

12.4

11.9

Adjusted Bank Regulatory Capital Ratios (Hypothetical Scenario of Selling All Bonds at Fair Market Value - Non-GAAP)

Well-Capitalized Threshold

September 30, 2025

December 31, 2024

September 30, 2024

Adjusted total risk-based capital ratio

10.0

16.0

15.3

15.6

Adjusted tier 1 risk-based capital ratio

8.0

14.9

14.2

14.5

Adjusted common equity tier 1 ratio

6.5

14.9

14.2

14.5

Adjusted leverage ratio

5.0

12.0

11.5

11.2

The Company recorded no charge-offs during the nine months ended September 30, 2025. As of September 30, 2025, the Company had no loans greater than 30 days past due, no non-accrual loans and no other real estate owned assets.

At September 30, 2025, the allowance for loan credit losses was $19.7 million or 1.02% of outstanding loans, net of unearned income, compared to $19.3 million or 1.01% of outstanding loans, net of unearned income, at June 30, 2025. An increase in the allowance for loan credit losses during the most recent quarter is attributable to the growth in the loan portfolio combined with the impact of updated economic forecasts used in the allowance estimate.

At September 30, 2025, the allowance for credit losses on unfunded loan commitments was $1.1 million compared to $1.2 million at June 30, 2025.

The Company did not have an allowance for credit losses on held-to-maturity securities as of September 30, 2025 or June 30, 2025. As of September 30, 2025, 93.3% of our held-to-maturity portfolio carried the implied guarantee of the United States government or one of its agencies.

The Company believes its owner occupied and non-owner occupied CRE portfolios continue to be of sound credit quality. The following table demonstrates their strong debt-service-coverage and loan-to-value ratios as of September 30, 2025.

Commercial Real Estate

Owner Occupied

Non-owner Occupied

Asset Class

Weighted

Average Loan-

to-Value (1)

Weighted

Average Debt

Service

Coverage

Ratio (2)

Number of

Total Loans

Principal

Balance (3)

(Dollars in

thousands)

Weighted

Average Loan-

to-Value (1)

Weighted

Average Debt

Service

Coverage

Ratio (2)

Number of

Total Loans

Principal

Balance (3)

(Dollars in

thousands)

Warehouse & Industrial

49.1

3.2

69,065

49.2

2.2

119,888

Office

57.7

3.6

137

87,445

45.9

1.9

99,726

Retail

59.4

2.8

77,817

50.2

1.8

143

449,123

Church

25.8

2.6

26,774

71.6

1.0

5,658

Hotel/Motel

- -

51.6

1.5

80,504

Other (4)

36.4

3.4

66,168

45.0

2.2

15,506

Total

290

327,269

266

770,405

(1)

Loan-to-value is determined at origination date and is divided by principal balance as of September 30, 2025.

(2)

The debt service coverage ratio (“DSCR”) is calculated from the primary source of repayment for the loan. Owner occupied DSCR’s are derived from cash flows from the owner occupant’s business, property and their guarantors, while non-owner occupied DSCR’s are derived from the net operating income of the property.

(3)

Principal balance excludes deferred fees or costs.

(4)

Other asset class is primarily comprised of schools, daycares and country clubs.

The following charts provide geographic detail and stated maturity summaries for the Company’s non-owner occupied office portfolio as of September 30, 2025:

Non-owner occupied office: Geography

Geography

Commitment

(in 000s)

Percentage

Virginia

$69,942

67.6%

Maryland

27,368

26.4%

5,833

5.6%

Other

438

0.4%

Total

$103,581

100.0%

Non-owner occupied office: Maturity

Maturity

Year

Commitment

(in 000s)

Percentage

2025

$4,338

4.2%

2026

5,804

5.6%

2027

1,387

1.3%

2028

14,361

13.9%

2029+

77,691

75.0%

Total

$103,581

100.0%

Income Statement Review

Quarterly Results

The Company reported net income of $5.4 million for the third quarter of 2025, an increase of $1.2 million or 27.6% when compared to $4.2 million for the third quarter of 2024.

For the three months ended September 30, 2025, net interest income increased $2.4 million or 18.6% to $15.6 million compared to $13.2 million for the three months ended September 30, 2024. During the same period, interest income increased $0.5 million or 1.8%, driven by higher interest income on loans, while interest expense declined by $1.9 million or 12.6%, predominantly due to lower interest expense on time deposits, money market accounts and borrowings.

The annualized tax-equivalent net interest margin (Non-GAAP) for the third quarter of 2025 was 2.73% as compared to 2.30% for the same period in 2024. The increase in tax-equivalent net interest margin was primarily due to lower rates on interest-bearing deposits in combination with the increase in average balances and yields of the loan portfolio.

The cost of interest-bearing liabilities was 3.37% for the third quarter of 2025 compared to 3.86% for the same quarter in the prior year driven by 49 basis points decline in rates on interest-bearing deposits. Rates declined across all deposit categories, most notably in NOW accounts, money market, and time deposits, which declined by 59 basis points, 52 basis points, and 41 basis points, respectively. Cost of borrowings declined from 4.88% for the prior year quarter to 4.52% in the most recent quarter, mainly as a result of the payoff of higher cost Bank Term Funding Program borrowings in September 2024, which were partially refinanced with lower cost FHLB advances. The yield on interest-earning assets was 5.06% for the third quarter of 2025 compared to 4.97% for the same period in 2024 primarily due to 11 basis points increases in both loan and investment securities yields. Average loans increased $93.8 million between the three months ended September 30, 2025 and the three months ended September 30, 2024, which was primarily attributable to origination volume in the investor real estate, construction and development, and residential mortgage loan portfolios subsequent to September 30, 2024.

The Company recorded a $356 thousand provision for credit losses for the third quarter of 2025 compared to $400 thousand for the third quarter of 2024. The provision for credit losses during the most recent quarter was directly attributable to the growth in the Company’s loan portfolio quarter-over-quarter coupled with the impact of updated economic forecasts used in the quantitative portion of the model. All other credit-related assumptions used in the allowance estimate, including qualitative adjustments, remained relatively consistent compared to the previous quarter.

Non-interest income increased $36 thousand during the third quarter of 2025 compared to the third quarter of 2024. This increase was primarily attributable to a $101 thousand increase in customer swap fee income, partially offset by a $54 thousand reduction in gains recorded on sales of the guaranteed portions of SBA 7(a) loans due to lower sale activity.

Non-interest expense increased $1.0 million or 12.5% during the third quarter of 2025 compared to the third quarter of 2024 primarily as a result of increases in salaries and employee benefits and other expenses. The $796 thousand or 16.3% increase in salaries and employee benefits was primarily related to increases in headcount within the Bank and incentive compensation tied to performance. The headcount increases are investments in the Bank’s future growth. As in the past, management expects these staffing additions will lead to subsequent increases in revenues. Incentive compensation expense accruals can fluctuate significantly from quarter to quarter, based upon the Company’s financial performance and condition measured against, among other evaluation criteria, our strategic plan and budget. Other expenses grew by $221 thousand or 9.3% due to a combination of higher state franchise taxes, marketing expense and general operating expenses. These increases were partially offset by lower occupancy expense, resulting from the negotiation of more favorable rents on three branch locations.

For the three months ended September 30, 2025, annualized non-interest expense to average assets was 1.57% compared to 1.39% for the three months ended September 30, 2024. The increase was primarily due to higher non-interest expense, as described above, when comparing the two periods. For the three months ended September 30, 2025, the efficiency ratio declined to 55.6% compared to 58.3% for the three months ended September 30, 2024. The improvement in the efficiency ratio was due to an 18.0% growth in total revenue, which outpaced a 12.5% increase in non-interest expense over the period.

Return on average assets for the quarter ended September 30, 2025 was 0.94% and return on average equity was 8.31% compared to 0.73% and 7.00%, respectively, for the third quarter of 2024.

Year-to-Date Results

The Company reported net income of $15.3 million for the nine months ended September 30, 2025, an increase of $3.0 million or 24.1% when compared to the same period in 2024.

Net interest income for the nine months ended September 30, 2025 increased $7.6 million or 20.7% compared to the same period of 2024. The annualized net interest margin and tax-equivalent net interest margin (Non-GAAP) for the nine months ended September 30, 2025 were 2.66% and 2.67%, respectively, as compared to 2.20% for the same periods in the prior year. These increases were driven primarily by the decrease in rates of interest-bearing deposits coupled with increases in average balances and yields of the loan portfolio.

The cost of interest-bearing liabilities was 3.41% for the nine months ended September 30, 2025 compared to 3.83% for the nine months ended September 30, 2024. The decrease in the cost of interest-bearing liabilities was primarily due to a 40 basis points decrease in the cost of interest-bearing deposits as a result of the repricing of the Company’s time deposits coupled with a decrease in rates offered on money market, NOW and savings deposit accounts since the third quarter of 2024. The yield on interest-earning assets was 5.03% for the nine months ended September 30, 2025 compared to 4.88% for the same period in 2024. The increase in yield on interest-earning assets was primarily due to an 18 basis point and a seven basis point increase in yields on the Company’s loans and securities, respectively, as a result of higher prevailing interest rates as assets repriced subsequent to the third quarter of 2024. Average loans increased $61.4 million between the nine months ended September 30, 2025 and 2024, which was primarily attributable to origination volume in the investor real estate, construction and development, and residential mortgage loan portfolios subsequent to September 30, 2024.

The Company recorded a $1.1 million provision for credit losses for the nine months ended September 30, 2025 compared to a $0.7 million recovery of provision for credit losses for the nine months ended September 30, 2024. The provision for credit losses during the nine months ended September 30, 2025 was primarily a result of changes in the composition and volume of the loan portfolio, updated economic forecasts used in the quantitative portion of the model and an assessment of management’s considerations of qualitative factors.

Non-interest income decreased $325 thousand or 16.3% during the nine months ended September 30, 2025 compared to the same period of 2024. The decrease was primarily driven by a $306 thousand decrease on the recorded gain on sale of the government guaranteed portion of the SBA 7(a) loans due to decreased sale activity along with a $53 thousand decrease in insurance commissions. These decreases were partially offset by a $66 thousand increase to the mark-to-market adjustments on the Company’s nonqualified deferred compensation plan and a $37 thousand increase in swap fee income.

Non-interest expense increased $1.7 million or 7.3% during the nine months ended September 30, 2025 compared to the same period in 2024 predominantly due to a $1.4 million or 9.5% increase in salaries and employee benefits, as discussed above in the quarterly results. Other expenses increased $411 thousand or 5.8% for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. Increases were primarily in data processing, state franchise tax and other general operating expenses. Furniture and equipment expenses increased $57 thousand or 6.3% for the nine months ended September 30, 2025 compared to the same period in 2024. The increase was due to investment and maintenance in technology. These increases were partially offset by a decrease in the Company’s occupancy expense, which declined by $125 thousand or 9.3% for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024, as a result of the negotiation of more favorable rents on three branch locations.

For the nine months ended September 30, 2025, annualized non-interest expense to average assets was 1.52% compared to 1.41% for the nine months ended September 30, 2024. The increase was primarily due to higher non-interest expenses combined with lower average assets when comparing the two periods.

For the nine months ended September 30, 2025, the efficiency ratio was 55.3% compared to 61.2% for the nine months ended September 30, 2024. The improvement in the efficiency ratio was due to an 18.8% growth in total revenue, which outpaced a 7.3% increase in non-interest expense over the period.

Return on average assets for the nine months ended September 30, 2025 was 0.91% and return on average equity was 8.05% compared to 0.73% and 6.97%, respectively, for the nine months ended September 30, 2024.

Explanation of Non-GAAP Financial Measures

This release contains financial information determined by methods other than in accordance with GAAP. Management believes that the supplemental Non-GAAP information provides a better comparison of period-to-period operating performance and unrealized losses in the Company’s bond portfolio on the Bank’s regulatory capital ratios. Additionally, the Company believes this information is utilized by regulators and market analysts to evaluate a company’s financial condition and therefore, such information is useful to investors. Non-GAAP measures used in this release consist of the following:

These disclosures should not be viewed as a substitute for, or more important than, financial results in accordance with GAAP, nor are they necessarily comparable to Non-GAAP performance measures which may be presented by other companies. Please refer to the “Reconciliation of Certain Non-GAAP Financial Measures” table and “Average Balance Sheets, Interest and Rates” tables for the respective periods for a reconciliation of these Non-GAAP measures to the most directly comparable GAAP measure.

About John Marshall Bancorp, Inc.

John Marshall Bancorp, Inc. is the bank holding company for John Marshall Bank. The Bank is headquartered in Reston, Virginia with eight full-service branches located in Alexandria, Arlington, Loudoun, Prince William, Reston, and Tysons, Virginia, as well as Rockville, Maryland, and Washington, D.C. The Bank is dedicated to providing exceptional value, personalized service and convenience to local businesses and professionals in the Washington, D.C. Metropolitan area. The Bank offers a comprehensive line of sophisticated banking products and services that rival those of the largest banks along with experienced staff to help achieve customers’ financial goals. Dedicated relationship managers serve as direct points-of-contact, providing subject matter expertise in a variety of niche industries including charter and private schools, government contractors, health services, nonprofits and associations, professional services, property management companies and title companies. Learn more at www.johnmarshallbank.com.

Cautionary Note Regarding Forward-Looking Statements

In addition to historical information, this press release 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 the Company. These forward-looking statements are generally identified by use of the words “believe,” “expect,” “intend,” “anticipate,” “estimate,” “project,” “will,” “should,” “may,” “view,” “opportunity,” “potential,” or similar expressions or expressions of confidence. Our ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on the operations of the Company and the Bank include, but are not limited to, the following: the concentration of our business in the Washington, D.C. metropolitan area and the effect of changes in the economic, political and environmental conditions on this market, including the ongoing shutdown of the U.S. Government and potential reductions in spending by the U.S. Government and related reductions in the federal workforce; adequacy of our allowance for loan credit losses; allowance for unfunded commitments credit losses, and allowance for credit losses associated with our held-to-maturity and available-for-sale securities portfolios; deterioration of our asset quality; future performance of our loan portfolio with respect to recently originated loans; the level of prepayments on loans and mortgage-backed securities; liquidity, interest rate and operational risks associated with our business; changes in our financial condition or results of operations that reduce capital; our ability to maintain existing deposit relationships or attract new deposit relationships; changes in consumer spending, borrowing and savings habits; inflation and changes in interest rates that may reduce our margins or reduce the fair value of financial instruments; changes in the monetary and fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System; additional risks related to new lines of business, products, product enhancements or services; increased competition with other financial institutions and fintech companies; adverse changes in the securities markets; changes in the financial condition or future prospects of issuers of securities that we own; our ability to maintain an effective risk management framework; changes in laws or government regulations or policies affecting financial institutions, including changes in regulatory structure and in regulatory fees and capital requirements; compliance with legislative or regulatory requirements; results of examination of us by our regulators, including the possibility that our regulators may require us to increase our allowance for credit losses or to write-down assets or take similar actions; potential claims, damages, and fines related to litigation or government actions; the effectiveness of our internal controls over financial reporting and our ability to remediate any future material weakness in our internal controls over financial reporting; geopolitical conditions, including trade restrictions and tariffs, and acts or threats of terrorism and/or military conflicts, or actions taken by the U.S. or other governments in response to trade restrictions and tariffs, and acts or threats of terrorism and/or military conflicts, negatively impacting business and economic conditions in the U.S. and abroad; the effects of weather-related or natural disasters, which may negatively affect our operations and/or our loan portfolio and increase our cost of conducting business; public health events (such as the COVID-19 pandemic) and governmental and societal responses thereto; technological risks and developments, and cyber threats, attacks, or events; changes in accounting policies and practices; our ability to successfully capitalize on growth opportunities; our ability to retain key employees; deteriorating economic conditions, either nationally or in our market area, including higher unemployment and lower real estate values; implications of our status as a smaller reporting company and as an emerging growth company; and other factors discussed in the Company’s reports (such as our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K) filed with the Securities and Exchange Commission. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. The Company does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions which may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events. Annualized, pro forma, projected and estimated numbers are used for illustrative purpose only, are not forecasts and may not reflect actual results.

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 Nine Months Ended

September 30

2025

2024

2025

2024

Selected Balance Sheet Data

Cash and cash equivalents

163,645

177,227

163,645

177,227

Total investment securities

216,119

247,840

216,119

247,840

Loans, net of unearned income

1,938,108

1,842,598

1,938,108

1,842,598

Allowance for loan credit losses

19,714

18,481

19,714

18,481

Total assets

2,324,544

2,274,363

2,324,544

2,274,363

Non-interest bearing demand deposits

446,925

472,422

446,925

472,422

Interest bearing deposits

1,521,903

1,463,728

1,521,903

1,463,728

Total deposits

1,968,828

1,936,150

1,968,828

1,936,150

Federal Home Loan Bank advances

56,000

Shareholders' equity

259,692

243,118

259,692

243,118

Summary Results of Operations

Interest income

28,945

28,428

84,092

82,138

Interest expense

13,345

15,272

39,470

45,158

Net interest income

15,600

13,156

44,622

36,980

Provision for (recovery of) credit losses

356

400

1,064

(667)

Net interest income after provision for (recovery of) credit losses

15,244

12,756

43,558

37,647

Non-interest income

653

617

1,665

1,990

Non-interest expense

9,034

8,031

25,594

23,863

Income before income taxes

6,863

5,342

19,629

15,774

Net income

5,404

4,235

15,317

12,344

Per Share Data and Shares Outstanding

Earnings per common share - basic

0.38

0.30

1.07

0.87

Earnings per common share - diluted

0.38

0.30

1.07

0.87

Book value per share

18.27

17.07

18.27

17.07

Weighted average common shares (basic)

14,172,953

14,187,691

14,205,357

14,164,060

Weighted average common shares (diluted)

14,172,953

14,214,586

14,211,882

14,198,332

Common shares outstanding at end of period

14,216,781

14,238,677

14,216,781

14,238,677

Performance Ratios

Return on average assets (annualized)

0.94

0.73

0.91

0.73

Return on average equity (annualized)

8.31

7.00

8.05

6.97

Net interest margin

2.72

2.30

2.66

2.20

Tax-equivalent net interest margin (Non-GAAP) (1)

2.73

2.30

2.67

2.20

Non-interest income as a percentage of average assets (annualized)

0.11

0.10

0.12

Non-interest expense to average assets (annualized)

1.57

1.39

1.52

1.41

Efficiency ratio

55.6

58.3

55.3

61.2

Asset Quality

Non-performing assets to total assets

- -

Non-performing loans to total loans

- -

Allowance for loan credit losses to non-performing loans

N/M

Allowance for loan credit losses to total loans

1.02

1.00

1.02

1.00

Net charge-offs to average loans (annualized)

- -

Loans 30-89 days past due and accruing interest

- -

90 days past due and still accruing interest

- -

Non-accrual loans

- -

Other real estate owned

- -

Non-performing assets (2)

- -

Capital Ratios (Bank Level)

Equity / assets

12.1

11.6

12.1

11.6

Total risk-based capital ratio

16.6

16.3

16.6

16.3

Tier 1 risk-based capital ratio

15.5

15.3

15.5

15.3

Common equity tier 1 ratio

15.5

15.3

15.5

15.3

Leverage ratio

12.7

11.9

12.7

11.9

Other Information

Number of full time equivalent employees

134

# Full service branch offices

Non-GAAP financial measure. Refer to “Average Balance, Interest and Rates table” for further details.

Non-performing assets consist of non-accrual loans, loans 90 days or more past due and still accruing interest and other real estate owned.

John Marshall Bancorp, Inc.

Consolidated Balance Sheets

(Dollar amounts in thousands, except per share data)

% Change

September 30,

December 31,

September 30,

Last Nine

Year Over

2025

2024

Months

Year

Assets

(Unaudited)

Cash and due from banks

8,867

5,945

8,164

49.2

8.6

Interest-bearing deposits in banks

154,778

116,524

169,063

32.8

(8.4

Securities available-for-sale, at fair value

116,378

130,257

144,649

(10.7

(19.5

Securities held-to-maturity at amortized cost, fair value of $77,647, $76,270, and $79,731 at 9/30/2025, 12/31/2024, and 9/30/2024, respectively.

89,291

92,009

92,863

(3.0

(3.8

Restricted securities, at cost

7,641

7,634

7,630

- -

0.1

Equity securities, at fair value

2,809

2,832

2,698

(0.8

4.1

Loans, net of unearned income

1,938,108

1,872,173

1,842,598

3.5

5.2

Allowance for loan credit losses

(19,714

)

(18,715

)

(18,481

)

5.3

6.7

Net loans

1,918,394

1,853,458

1,824,117

3.5

5.2

Bank premises and equipment, net

1,424

1,318

1,179

8.0

20.8

Accrued interest receivable

5,819

5,996

5,657

(3.0

2.9

Right of use assets

4,583

5,013

3,824

(8.6

19.8

Other assets

14,560

13,961

14,519

4.3

0.3

Total assets

2,324,544

2,234,947

2,274,363

4.0

2.2

Liabilities and Shareholders' Equity

Liabilities

Deposits:

Non-interest bearing demand deposits

446,925

433,288

472,422

3.1

(5.4

Interest-bearing demand deposits

727,295

705,097

685,385

3.1

6.1

Savings deposits

39,427

44,367

43,779

(11.1

(9.9

Time deposits

755,181

709,663

734,564

6.4

2.8

Total deposits

1,968,828

1,892,415

1,936,150

4.0

1.7

Federal Home Loan Bank advances

56,000

- -

Subordinated debt, net

24,854

24,791

24,770

0.3

Accrued interest payable

1,869

2,394

2,304

(21.9

(18.9

Lease liabilities

4,941

5,369

4,090

(8.0

20.8

Other liabilities

8,360

7,364

7,931

13.5

5.4

Total liabilities

2,064,852

1,988,333

2,031,245

3.8

1.7

Shareholders' Equity

Preferred stock, par value $0.01 per share; authorized 1,000,000 shares; none issued

- -

N/M

Common stock, nonvoting, par value $0.01 per share; authorized 1,000,000 shares; none issued

- -

N/M

Common stock, voting, par value $0.01 per share; authorized 30,000,000 shares; issued and outstanding, 14,216,781 at 9/30/2025 including 51,085 unvested shares, issued and outstanding, 14,269,469 at 12/31/2024 including 54,388 unvested shares, and issued and outstanding, 14,238,677 at 9/30/2024 including 45,753 unvested shares

142

- -

Additional paid-in capital

96,311

97,173

97,017

(0.9

(0.7

Retained earnings

170,998

159,951

155,174

6.9

10.2

Accumulated other comprehensive loss

(7,759

)

(10,652

)

(9,215

)

(27.2

(15.8

Total shareholders' equity

259,692

246,614

243,118

5.3

6.8

Total liabilities and shareholders' equity

2,324,544

2,234,947

2,274,363

4.0

2.2

* Derived from audited consolidated financial statements.

John Marshall Bancorp, Inc.

Consolidated Statements of Income

(Dollar amounts in thousands, except per share data)

Three Months Ended

Nine Months Ended

September 30,

2025

2024

% Change

2025

2024

% Change

(Unaudited)

Interest and Dividend Income

Interest and fees on loans

26,191

24,306

7.8

76,218

71,289

6.9

Interest on investment securities, taxable

1,043

1,138

(8.3

3,145

3,602

(12.7

Interest on investment securities, tax-exempt

Dividends

119

22.7

363

262

38.5

Interest on deposits in other banks

1,583

2,878

(45.0

4,339

6,958

(37.6

Total interest and dividend income

28,945

28,428

1.8

84,092

82,138

2.4

Interest Expense

Deposits

12,424

14,102

(11.9

36,725

41,484

(11.5

Federal funds purchased

- -

N/M

Federal Home Loan Bank advances

572

174

228.7

1,696

174

874.7

Federal Reserve Bank borrowings

- -

647

(100.0

- -

2,451

(100.0

Subordinated debt

349

1,047

Total interest expense

13,345

15,272

(12.6

39,470

45,158

(12.6

Net interest income

15,600

13,156

18.6

44,622

36,980

20.7

Provision for (recovery of) Credit Losses

356

400

(11.0

1,064

(667

)

(259.5

Net interest income after provision for (recovery of) credit losses

15,244

12,756

19.5

43,558

37,647

15.7

Non-interest Income

Service charges on deposit accounts

3.6

255

260

(1.9

Other service charges and fees

135

160

(15.6

429

474

(9.5

Insurance commissions

(9.4

304

357

(14.8

Gain on sale of government guaranteed loans

106

160

(33.8

203

509

(60.1

Non-qualified deferred compensation plan asset gains, net

158

139

13.7

364

298

22.1

Other income

109

990.0

110

19.6

Total non-interest income

653

617

5.8

1,665

1,990

(16.3

Non-interest Expenses

Salaries and employee benefits

5,693

4,897

16.3

15,971

14,583

9.5

Occupancy expense of premises

405

444

(8.8

1,218

1,343

(9.3

Furniture and equipment expenses

329

304

8.2

959

902

6.3

Other expenses

2,607

2,386

9.3

7,446

7,035

5.8

Total non-interest expenses

9,034

8,031

12.5

25,594

23,863

7.3

Income before income taxes

6,863

5,342

28.5

19,629

15,774

24.4

Income Tax Expense

1,459

1,107

31.8

4,312

3,430

25.7

Net income

5,404

4,235

27.6

15,317

12,344

24.1

Earnings Per Share

Basic

0.38

0.30

26.7

1.07

0.87

23.0

Diluted

0.38

0.30

26.7

1.07

0.87

23.0

John Marshall Bancorp, Inc.

Historical Trends - Quarterly Financial Data (Unaudited)

(Dollar amounts in thousands, except per share data)

2025

2024

September 30

June 30

March 31

December 31

September 30

June 30

March 31

Profitability for the Quarter:

Interest income

28,945

27,843

27,305

27,995

28,428

26,791

26,919

Interest expense

13,345

12,917

13,208

13,929

15,272

14,710

15,175

Net interest income

15,600

14,926

14,097

14,066

13,156

12,081

11,744

Provision for (recovery of) credit losses

356

537

170

298

400

(292

)

(776

)

Non-interest income

653

507

505

281

617

555

818

Non-interest expenses

9,034

8,313

8,248

7,945

8,031

7,909

7,924

Income before income taxes

6,863

6,583

6,184

6,104

5,342

5,019

5,414

Income tax expense

1,459

1,480

1,374

1,328

1,107

1,114

1,210

Net income

5,404

5,103

4,810

4,776

4,235

3,905

4,204

Financial Performance:

Return on average assets (annualized)

0.94

0.91

0.87

0.85

0.73

0.70

0.75

Return on average equity (annualized)

8.31

8.06

7.76

7.71

7.00

6.68

7.23

Net interest margin

2.72

2.69

2.58

2.52

2.30

2.19

2.11

Tax-equivalent net interest margin (Non-GAAP)

2.73

2.70

2.58

2.52

2.30

2.19

2.11

Non-interest income as a percentage of average assets (annualized)

0.11

0.09

0.05

0.11

0.10

0.15

Non-interest expense to average assets (annualized)

1.57

1.49

1.50

1.41

1.39

1.42

1.41

Efficiency ratio

55.6

53.9

56.5

55.4

58.3

62.6

63.1

Per Share Data:

Earnings per common share - basic

0.38

0.36

0.34

0.30

0.27

0.30

Earnings per common share - diluted

0.38

0.36

0.34

0.33

0.30

0.27

0.30

Book value per share

18.27

17.83

17.72

17.28

17.07

16.54

16.51

Dividends declared per share

- -

0.30

- -

0.25

- -

Weighted average common shares (basic)

14,172,953

14,221,597

14,223,046

14,196,309

14,187,691

14,173,245

14,130,986

Weighted average common shares (diluted)

14,172,953

14,223,418

14,241,114

14,224,287

14,214,586

14,200,171

14,181,254

Common shares outstanding at end of period

14,216,781

14,231,389

14,275,885

14,269,469

14,238,677

14,229,853

14,209,606

Non-interest Income:

Service charges on deposit accounts

Other service charges and fees

135

141

153

181

160

165

149

Insurance commissions

213

252

Gain on sale of government guaranteed loans

106

160

216

133

Non-qualified deferred compensation plan asset gains (losses), net

158

182

(62

)

139

124

Other income (loss)

109

)

Total non-interest income

653

507

505

281

617

555

818

Non-interest Expenses:

Salaries and employee benefits

5,693

5,178

5,099

4,658

4,897

4,875

4,810

Occupancy expense of premises

405

407

417

444

448

451

Furniture and equipment expenses

329

315

316

319

304

301

297

Other expenses

2,607

2,413

2,426

2,551

2,386

2,285

2,366

Total non-interest expenses

9,034

8,313

8,248

7,945

8,031

7,909

7,924

Balance Sheets at Quarter End:

Total loans, net of unearned income

1,938,108

1,916,915

1,870,472

1,872,173

1,842,598

1,827,187

1,825,931

Allowance for loan credit losses

(19,714

)

(19,298

)

(18,826

)

(18,715

)

(18,481

)

(18,433

)

(18,671

)

Investment securities

216,119

226,495

226,163

232,732

247,840

249,582

261,341

Interest-earning assets

2,309,005

2,250,921

2,255,154

2,221,429

2,259,501

2,249,350

2,234,592

Total assets

2,324,544

2,267,953

2,272,432

2,234,947

2,274,363

2,269,757

2,251,837

Total deposits

1,968,828

1,896,893

1,922,175

1,892,415

1,936,150

1,912,840

1,900,990

Total interest-bearing liabilities

1,602,757

1,555,598

1,565,165

1,539,918

1,544,498

1,577,420

1,598,050

Total shareholders' equity

259,692

253,732

252,958

246,614

243,118

235,346

234,550

Quarterly Average Balance Sheets:

Total loans, net of unearned income

1,912,275

1,868,290

1,868,303

1,838,526

1,818,472

1,810,722

1,835,966

Investment securities

221,802

229,171

231,479

243,329

249,354

255,940

270,760

Interest-earning assets

2,275,386

2,224,806

2,220,730

2,223,725

2,277,427

2,222,658

2,247,620

Total assets

2,289,352

2,238,955

2,233,761

2,238,062

2,292,385

2,239,261

2,264,544

Total deposits

1,934,456

1,883,425

1,884,969

1,893,976

1,939,601

1,883,010

1,914,173

Total interest-bearing liabilities

1,571,390

1,530,811

1,540,974

1,532,452

1,573,631

1,551,953

1,600,197

Total shareholders' equity

257,993

254,071

251,559

246,525

240,609

235,136

233,952

Financial Measures:

Average equity to average assets

11.3

11.0

10.5

10.3

Investment securities to earning assets

9.4

10.1

10.0

10.5

11.0

11.1

11.7

Loans to earning assets

83.9

85.2

82.9

84.3

81.5

81.2

81.7

Loans to assets

83.4

84.5

82.3

83.8

81.0

80.5

81.1

Loans to deposits

98.4

101.1

97.3

98.9

95.2

95.5

96.1

Capital Ratios (Bank Level):

Equity / assets

12.1

12.2

11.9

11.6

11.4

11.3

Total risk-based capital ratio

16.6

16.3

16.5

16.2

16.3

16.4

16.1

Tier 1 risk-based capital ratio

15.5

15.3

15.4

15.2

15.3

15.4

15.1

Common equity tier 1 ratio

15.5

15.3

15.4

15.2

15.3

15.4

15.1

Leverage ratio

12.7

12.8

12.6

12.4

11.9

12.2

11.8

John Marshall Bancorp, Inc.

Loan, Deposit and Borrowing Detail (Unaudited)

(Dollar amounts in thousands)

2025

2024

September 30

June 30

March 31

December 31

September 30

June 30

March 31

Loans

$ Amount

% of Total

$ Amount

% of Total

$ Amount

% of Total

$ Amount

% of Total

$ Amount

% of Total

$ Amount

% of Total

$ Amount

% of Total

Commercial business loans

46,486

2.4

43,158

2.3

46,479

2.5

47,612

2.5

39,741

2.2

41,806

2.3

42,779

2.3

Commercial PPP loans

124

0.0

124

0.0

124

0.0

124

0.0

126

0.0

127

0.0

129

0.0

Commercial owner-occupied real estate loans

327,269

16.9

320,061

16.7

318,087

17.1

329,222

17.6

343,906

18.7

349,644

19.2

356,335

19.6

Total business loans

373,879

19.3

363,343

19.0

364,690

19.6

376,958

20.2

383,773

20.9

391,577

21.5

399,243

21.9

Investor real estate loans

770,405

39.9

777,591

40.7

759,002

40.7

757,173

40.5

726,771

39.5

722,419

39.6

692,418

38.0

Construction & development loans

193,444

10.0

186,409

9.7

173,270

9.3

164,988

8.8

161,466

8.8

138,744

7.6

151,476

8.3

Multi-family loans

93,477

4.8

94,415

4.9

95,556

5.1

94,695

5.1

91,426

5.0

91,925

5.1

94,719

5.2

Total commercial real estate loans

1,057,326

54.7

1,058,415

55.3

1,027,828

55.1

1,016,856

54.4

979,663

53.3

953,088

52.3

938,613

51.5

Residential mortgage loans

501,104

25.9

489,522

25.6

472,747

25.3

472,932

25.3

473,787

25.8

476,764

26.2

482,254

26.5

Consumer loans

1,029

0.1

998

0.1

809

0.0

906

0.0

877

0.0

876

0.0

772

0.1

Total loans

1,933,338

100.0

1,912,278

100.0

1,866,074

100.0

1,867,652

100.0

1,838,100

100.0

1,822,305

100.0

1,820,882

100.0

Less: Allowance for loan credit losses

(19,714

)

(19,298

)

(18,826

)

(18,715

)

(18,481

)

(18,433

)

(18,671

)

Net deferred loan costs

4,770

4,637

4,398

4,521

4,498

4,882

5,049

Net loans

1,918,394

1,897,617

1,851,646

1,853,458

1,824,117

1,808,754

1,807,260

2025

2024

September 30

June 30

March 31

December 31

September 30

June 30

March 31

Deposits

$ Amount

% of Total

$ Amount

% of Total

$ Amount

% of Total

$ Amount

% of Total

$ Amount

% of Total

$ Amount

% of Total

$ Amount

% of Total

Non-interest bearing demand deposits

446,925

22.7

438,628

23.1

437,822

22.8

433,288

22.9

472,422

24.4

437,169

22.8

404,669

21.3

Interest-bearing demand deposits:

NOW accounts (1)

366,655

18.6

344,931

18.2

355,752

18.5

355,840

18.8

324,660

16.8

321,702

16.8

318,445

16.8

Money market accounts (1)

360,640

18.3

336,299

17.7

349,634

18.2

349,257

18.5

360,725

18.6

346,249

18.1

326,135

17.1

Savings accounts

39,427

2.0

42,966

2.3

42,583

2.2

44,367

2.3

43,779

2.3

45,884

2.4

50,664

2.7

Certificates of deposit

$250,000 or more

337,800

17.2

324,343

17.1

322,630

16.8

315,549

16.7

334,591

17.3

339,908

17.8

355,766

18.7

Less than $250,000

85,719

4.4

80,500

4.2

79,305

4.1

83,060

4.4

86,932

4.5

91,258

4.8

99,694

5.2

QwickRate® certificates of deposit

249

0.0

249

0.1

249

0.0

249

0.0

4,119

0.2

4,119

0.2

5,117

0.3

IntraFi® certificates of deposit

29,451

1.5

27,015

1.4

36,522

1.9

34,288

1.8

32,801

1.7

32,922

1.7

34,443

1.8

Brokered deposits

301,962

15.3

301,962

15.9

297,678

15.5

276,517

14.6

276,121

14.2

293,629

15.4

306,057

16.1

Total deposits

1,968,828

100.0

1,896,893

100.0

1,922,175

100.0

1,892,415

100.0

1,936,150

100.0

1,912,840

100.0

1,900,990

100.0

Borrowings

Federal funds purchased

- -

0.0

16,500

17.0

- -

0.0

- -

0.0

- -

0.0

- -

0.0

- -

0.0

Federal Home Loan Bank advances

56,000

69.3

56,000

57.5

56,000

69.3

56,000

69.3

56,000

69.3

- -

0.0

- -

0.0

Federal Reserve Bank borrowings

- -

0.0

- -

0.0

- -

0.0

- -

0.0

- -

0.0

77,000

75.7

77,000

75.7

Subordinated debt, net

24,854

30.7

24,833

25.5

24,812

30.7

24,791

30.7

24,770

30.7

24,749

24.3

24,729

24.3

Total borrowings

80,854

100.0

97,333

100.0

80,812

100.0

80,791

100.0

80,770

100.0

101,749

100.0

101,729

100.0

Total deposits and borrowings

2,049,682

1,994,226

2,002,987

1,973,206

2,016,920

2,014,589

2,002,719

Core customer funding sources (2)

1,666,617

82.3

1,594,682

81.0

1,624,248

82.1

1,615,649

82.9

1,655,910

83.1

1,615,092

81.2

1,589,816

80.4

Wholesale funding sources (3)

358,211

17.7

374,711

19.0

353,927

17.9

332,766

17.1

336,240

16.9

374,748

18.8

388,174

19.6

Total funding sources

2,024,828

100.0

1,969,393

100.0

1,978,175

100.0

1,948,415

100.0

1,992,150

100.0

1,989,840

100.0

1,977,990

100.0

Includes IntraFi ® accounts.

Includes reciprocal IntraFi Demand ® IntraFi Money Market ® and IntraFi CD ® deposits, which are maintained by customers.

Consists of QwickRate ® certificates of deposit, brokered deposits, federal funds purchased, Federal Home Loan Bank advances and Federal Reserve Bank borrowings.

John Marshall Bancorp, Inc.

Average Balance Sheets, Interest and Rates (unaudited)

(Dollar amounts in thousands)

Nine Months Ended September 30, 2025

Nine Months Ended September 30, 2024

Interest Income /

Average

Interest Income /

Average

(Dollars in thousands)

Average Balance

Expense

Rate

Average Balance

Expense

Rate

Assets:

Securities:

Taxable

226,070

3,508

2.07

257,272

3,864

2.01

Tax-exempt (1)

1,379

3.30

1,379

3.29

Total securities

227,449

3,542

2.08

258,651

3,898

2.01

Loans, net of unearned income (2):

Taxable

1,866,217

75,818

5.43

1,802,807

70,858

5.25

Tax-exempt (1)

16,900

507

4.01

18,901

546

3.86

Total loans, net of unearned income

1,883,117

76,325

5.42

1,821,708

71,404

5.24

Interest-bearing deposits in other banks

129,942

4,339

4.46

168,979

6,958

5.50

Total interest-earning assets

2,240,508

84,206

5.03

2,249,338

82,260

4.88

Total non-interest earning assets

13,718

16,133

Total assets

2,254,226

2,265,471

Liabilities & Shareholders’ Equity:

Interest-bearing deposits

NOW accounts

347,468

6,018

2.32

312,255

6,533

2.79

Money market accounts

346,041

7,018

2.71

340,362

8,190

3.21

Savings accounts

42,853

331

1.03

50,060

529

1.41

Time deposits

730,532

23,358

4.27

773,537

26,232

4.53

Total interest-bearing deposits

1,466,894

36,725

3.35

1,476,214

41,484

3.75

Federal funds purchased

4.38

7.22

Subordinated debt

24,820

1,047

5.64

24,737

1,047

5.65

Federal Reserve Bank borrowings

—

N/M

68,543

2,451

4.78

Federal Home Loan Bank advances

56,000

1,696

4.05

5,723

174

4.06

Total interest-bearing liabilities

1,547,775

39,470

3.41

1,575,254

45,158

3.83

Demand deposits

434,238

436,147

Other liabilities

17,729

17,489

Total liabilities

1,999,742

2,028,890

Shareholders’ equity

254,484

236,581

Total liabilities and shareholders’ equity

2,254,226

2,265,471

Tax-equivalent net interest income and spread (Non-GAAP) (1)

44,736

1.62

37,102

1.06

Less: tax-equivalent adjustment

114

122

Net interest income and spread (GAAP)

44,622

1.61

36,980

1.05

Interest income/earning assets

5.02

4.88

Interest expense/earning assets

2.36

2.68

Net interest margin

2.66

2.20

Tax-equivalent interest income/earning assets (Non-GAAP) (1)

5.03

4.88

Interest expense/earning assets

2.36

2.68

Tax-equivalent net interest margin (Non-GAAP) (3)

2.67

2.20

Tax-equivalent income and related measures have been adjusted using the federal statutory tax rate of 21%. The annualized taxable-equivalent adjustments utilized in the above table to compute yields aggregated to $114 thousand and $122 thousand for the nine months ended September 30, 2025 and September 30, 2024, respectively.

The Company did not have any loans on non-accrual as of September 30, 2025 and September 30, 2024.

Tax-equivalent net interest margin adjusts for differences in tax treatment of interest income sources. The entire tax-equivalent adjustment is attributable to interest income on earning assets. Interest expense and the related cost of interest-bearing liabilities and cost of funds ratios are not affected by the tax-equivalent components.

John Marshall Bancorp, Inc.

Average Balance Sheets, Interest and Rates (unaudited)

(Dollar amounts in thousands)

Three Months Ended September 30, 2025

Three Months Ended September 30, 2024

Interest Income /

Average

Interest Income /

Average

(Dollars in thousands)

Average Balance

Expense

Rate

Average Balance

Expense

Rate

Assets:

Securities:

Taxable

220,424

1,162

2.09

247,975

1,235

1.98

Tax-exempt (1)

1,378

3.17

1,379

3.17

Total securities

221,802

1,173

2.10

249,354

1,246

1.99

Loans, net of unearned income (2):

Taxable

1,894,756

26,047

5.45

1,801,422

24,173

5.34

Tax-exempt (1)

17,519

182

4.12

17,050

168

3.92

Total loans, net of unearned income

1,912,275

26,229

5.44

1,818,472

24,341

5.33

Interest-bearing deposits in other banks

141,309

1,583

4.44

209,601

2,878

5.46

Total interest-earning assets

2,275,386

28,985

5.06

2,277,427

28,465

4.97

Total non-interest earning assets

13,966

14,958

Total assets

2,289,352

2,292,385

Liabilities & Shareholders’ Equity:

Interest-bearing deposits

NOW accounts

354,918

2,057

2.30

319,463

2,321

2.89

Money market accounts

350,431

2,418

2.74

374,141

3,068

3.26

Savings accounts

43,401

120

1.10

45,980

168

1.45

Time deposits

741,797

7,829

4.19

738,680

8,545

4.60

Total interest-bearing deposits

1,490,547

12,424

3.31

1,478,264

14,102

3.80

Federal funds purchased

—

N/M

Subordinated debt

24,841

349

5.57

24,758

349

5.61

Federal Reserve Bank borrowings

—

N/M

53,565

647

4.81

Federal Home Loan Bank advances

56,001

572

4.05

17,044

174

4.06

Total interest-bearing liabilities

1,571,390

13,345

3.37

1,573,631

15,272

3.86

Demand deposits

443,909

461,337

Other liabilities

16,060

16,808

Total liabilities

2,031,359

2,051,776

Shareholders’ equity

257,993

240,609

Total liabilities and shareholders’ equity

2,289,352

2,292,385

Tax-equivalent net interest income and spread (Non-GAAP) (1)

15,640

1.69

13,193

1.11

Less: tax-equivalent adjustment

Net interest income and spread (GAAP)

15,600

1.68

13,156

1.11

Interest income/earning assets

5.05

4.97

Interest expense/earning assets

2.33

2.67

Net interest margin

2.72

2.30

Tax-equivalent interest income/earning assets (Non-GAAP) (1)

5.06

4.97

Interest expense/earning assets

2.33

2.67

Tax-equivalent net interest margin (Non-GAAP) (3)

2.73

2.30

Tax-equivalent income and related measures have been adjusted using the federal statutory tax rate of 21%. The annualized taxable-equivalent adjustments utilized in the above table to compute yields aggregated to $40 thousand and $37 thousand for the three months ended September 30, 2025 and September 30, 2024, respectively.

The Company did not have any loans on non-accrual as of September 30, 2025 and September 30, 2024.

John Marshall Bancorp, Inc.

Reconciliation of Certain Non-GAAP Financial Measures (unaudited)

(Dollar amounts in thousands)

As of

September 30,

2025

December 31,

2024

September 30,

2024

Regulatory Ratios (Bank)

Total risk-based capital (GAAP)

310,363

295,119

291,881

Less: Unrealized losses on available-for-sale securities, net of tax benefit (1)

7,818

10,732

9,304

Less: Unrealized losses on held-to-maturity securities, net of tax benefit (1)

9,199

12,353

10,285

Adjusted total risk-based capital, excluding unrealized losses on available-for-sale and held-to-maturity securities, net of tax benefit (Non-GAAP)

293,346

272,034

272,292

Tier 1 capital (GAAP)

290,073

276,468

273,529

Less: Unrealized losses on available-for-sale securities, net of tax benefit (1)

7,818

10,732

9,304

Less: Unrealized losses on held-to-maturity securities, net of tax benefit (1)

9,199

12,353

10,285

Adjusted tier 1 capital, excluding unrealized losses on available-for-sale and held-to-maturity securities, net of tax benefit (Non-GAAP)

273,056

253,383

253,940

Risk weighted assets (GAAP)

1,873,668

1,819,888

1,787,663

Less: Risk weighted available-for-sale securities

18,574

19,623

21,440

Less: Risk weighted held-to-maturity securities

15,986

16,462

16,618

Adjusted risk weighted assets, excluding available-for-sale and held-to-maturity securities (Non-GAAP)

1,839,108

1,783,803

1,749,605

Total average assets for leverage ratio (GAAP)

2,286,186

2,235,952

2,290,205

Less: Unrealized losses on available-for-sale securities, net of tax benefit (1)

7,818

10,732

9,304

Less: Unrealized losses on held-to-maturity securities, net of tax benefit (1)

9,199

12,353

10,285

Adjusted total average assets for leverage ratio, excluding available-for-sale and held-to-maturity securities (Non-GAAP)

2,269,169

2,212,867

2,270,616

Total risk-based capital ratio (2)

Total risk-based capital ratio (GAAP)

16.6

16.2

16.3

Adjusted total risk-based capital ratio (Non-GAAP) (3)

16.0

15.3

15.6

Tier 1 capital ratio (4)

Tier 1 risk-based capital ratio (GAAP)

15.5

15.2

15.3

Adjusted tier 1 risk-based capital ratio (Non-GAAP) (5)

14.9

14.2

14.5

Common equity tier 1 ratio (6)

Common equity tier 1 ratio (GAAP)

15.5

15.2

15.3

Adjusted common equity tier 1 ratio (Non-GAAP) (7)

14.9

14.2

14.5

Leverage ratio (8)

Leverage ratio (GAAP)

12.7

12.4

11.9

Adjusted leverage ratio (Non-GAAP) (9)

12.0

11.5

11.2

Includes tax benefit calculated using the federal statutory tax rate of 21%.

The total risk-based capital ratio is calculated by dividing total risk-based capital by risk weighted assets.

The adjusted total risk-based capital ratio is calculated by dividing adjusted total risk-based capital by adjusted risk weighted assets.

The tier 1 capital ratio is calculated by dividing tier 1 capital by risk weighted assets.

The adjusted tier 1 capital ratio is calculated by dividing adjusted tier 1 capital by adjusted risk weighted assets.

The common equity tier 1 ratio is calculated by dividing tier 1 capital by risk weighted assets.

The adjusted common equity tier 1 ratio is calculated by dividing adjusted tier 1 capital by adjusted risk weighted assets.

The leverage ratio is calculated by dividing tier 1 capital by total average assets for leverage ratio.

The adjusted leverage ratio is calculated by dividing adjusted tier 1 capital by adjusted total average assets for leverage ratio.

Category: Earnings