John Marshall Bancorp, Inc. Reports Continued Net Interest Margin Growth Drives 27% Increase in Net Income - Core Deposits and Loans Expand and Asset Quality Remains Strong

John Marshall Bancorp, Inc. Reports Continued Net Interest Margin Growth Drives 27% Increase in Net Income - Core Deposits and Loans Expand and Asset Quality Remains Strong RESTON, Va.--( BUSINESS WIRE)-- John Marshall Bancorp, Inc. (Nasdaq: JMSB) (the “Company”), parent company of John Marshall Bank (the “Bank”), reported net income of $6.1 million for the quarter ended March 31, 2026 compared to $4.8 million for the quarter ended March 31, 2025, an increase of $1.3 million or 26.8%. Diluted earnings per common share were $0.43 for the quarter ended March 31, 2026 compared to $0.34 for the quarter ended March 31, 2025, an increase of 26.5%. Annualized return on average assets was 1.06% for the quarter ended March 31, 2026 compared to 0.87% for the quarter ended March 31, 2025. Annualized return on average equity was 9.19% for the quarter ended March 31, 2026 compared to 7.76% for the quarter ended March 31, 2025.

Selected Highlights

Chris Bergstrom, President and Chief Executive Officer, commented, “The first quarter of 2026 marks the eighth consecutive quarter of net interest margin improvement. Of the 29 basis points of margin improvement over the last year, 14 basis points of that increase occurred during the first quarter of 2026. Increased margin and $103 million in loan growth over the last twelve months enabled the Company to grow both net income and earnings per share by 27%. Our asset quality remains outstanding. We expect the SBA to pay their guarantee and resolve our one non-accruing loan. With 16.5% total risk-based capital, we have the requisite equity to grow loans at appropriate risk-adjusted returns. Alternatively, we have ample excess capital to build upon the 103,000 shares we repurchased during the first quarter. Our priorities remain unchanged. We continue to invest in technology and personnel to cultivate new relationships and deepen existing ones. We remain focused on delivering tailored banking services and exceptional client experiences. As demonstrated by the nearly 23% increase in our share price from March 31, 2025 to March 31, 2026 and our increased quarterly cash dividend rate, we believe our balance sheet allows us to focus on continued growth, and drive increased returns and shareholder value.”

Balance Sheet, Liquidity and Credit Quality

Total assets were $2.35 billion at March 31, 2026, $2.33 billion at December 31, 2025, and $2.27 billion at March 31, 2025. Total assets increased $19.8 million or 3.4% annualized since December 31, 2025 and $79.9 million or 3.5% from March 31, 2025.

Total loans, net of unearned income, declined $1.6 million or 0.3% annualized to $1.97 billion at March 31, 2026 compared to $1.98 billion at December 31, 2025 and increased $103.3 million or 5.5% from $1.87 billion at March 31, 2025. The increase in loans over the preceding twelve months was primarily attributable to growth in construction & development loans and residential mortgage loans. Refer to the Loan, Deposit and Borrowing Detail table for further information.

The carrying value of the Company’s fixed income securities portfolio was $213.8 million at March 31, 2026, $212.3 million at December 31, 2025, and $215.6 million at March 31, 2025. During the most recent quarter, the Company purchased seven fixed income securities, designated as available-for-sale, with the total carrying amount of $15.0 million and a weighted average purchase yield of 4.08%. The current quarter’s maturities had an average yield of 2.07%. As of March 31, 2026, 95.3% of our bond portfolio carried the implied guarantee of the United States government or one of its agencies. At March 31, 2026, 70.6% of the fixed income portfolio was invested in amortizing bonds, which provides the Company with a source of steady cash flow. At March 31, 2026, the fixed income portfolio had an estimated weighted average life of 3.9 years. The available-for-sale portfolio comprised approximately 61% of the fixed income securities portfolio and had a weighted average life of 3.2 years at March 31, 2026. The held-to-maturity portfolio comprised approximately 39% of the fixed income securities portfolio and had a weighted average life of 4.9 years at March 31, 2026.

The Company did not have an allowance for credit losses on held-to-maturity securities as of March 31, 2026 or December 31, 2025. As of March 31, 2026, 93.1% of our held-to-maturity portfolio carried the implied guarantee of the United States government or one of its agencies.

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 $881.0 million as of March 31, 2026 compared to $827.0 million as of December 31, 2025 and represented 37.5% and 35.5% of total assets, respectively. In addition to available secured borrowing capacity, the Bank had available federal funds lines of $110.0 million at March 31, 2026.

Total deposits increased $15.4 million or 3.2% annualized to $1.99 billion at March 31, 2026 compared to $1.97 billion at December 31, 2025, and increased $65.6 million or 3.4% from $1.92 billion at March 31, 2025. During the most recent quarter, total non-interest bearing deposits increased $25.5 million or 23.9% annualized when compared to December 31, 2025, while total interest-bearing deposits declined $10.0 million or 2.6% annualized over the same period. As further detailed in the tables included in this release, core funding sources have increased $15.7 million, while wholesale funding sources have decreased $0.2 million since December 31, 2025. Detail on the deposit activity can be seen in the Loan, Deposit and Borrowing Detail table. As of March 31, 2026, the Company had $724.6 million of deposits that were not insured or not collateralized compared to $691.5 million and $660.8 million at December 31, 2025 and March 31, 2025, respectively.

Federal Home Loan Bank (“FHLB”) advances remained unchanged at $56.0 million as of March 31, 2026 compared to December 31, 2025 and March 31, 2025. During the first quarter of 2026, a $15.0 million maturing FHLB advance, carrying an interest rate of 4.14%, was replaced with the FHLB advance of the same principal amount and the interest rate of 3.61%. As of March 31, 2026, the FHLB advances had a weighted average fixed interest rate of 3.85%. In addition to outstanding FHLB advances, total borrowings as of March 31, 2026 included subordinated debt totaling $24.9 million.

Shareholders’ equity increased $15.1 million or 6.0% to $268.1 million at March 31, 2026 compared to $253.0 million at March 31, 2025. Book value per share was $19.00 as of March 31, 2026 compared to $17.72 as of March 31, 2025, an increase of 7.2%. 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, resulting from an increase in the market value of our available-for-sale investment portfolio. These increases were partially offset by cash dividends paid and a reduction of additional paid-in capital due to the Company’s share repurchases during the period.

The Bank’s capital ratios remained well above regulatory thresholds for well-capitalized banks. As of March 31, 2026, the Bank’s total risk-based capital ratio was 16.5%, compared to 16.3% at December 31, 2025, and 16.5% at March 31, 2025.

During the quarter ended March 31, 2026, the Company designated one commercial business SBA 7(a) loan as non-accrual. As of March 31, 2026, the total outstanding principal amount of the loan was $984 thousand and is fully guaranteed by the SBA. The Company charged-off the unguaranteed portion of the loan, in the total amount of $361 thousand, during the fourth quarter of 2025 and submitted a reimbursement claim to the SBA for the guaranteed portion. We expect the SBA to pay their guarantee and resolve our one non-accruing loan. During the three months ended March 31, 2026, the Company recorded no charge-offs and had no other real estate owned assets as of March 31, 2026.

At March 31, 2026, the allowance for loan credit losses was $20.0 million or 1.01% of outstanding loans, net of unearned income, compared to $19.8 million or 1.00% of outstanding loans, net of unearned income, at December 31, 2025. Asset quality remains strong. Management continues to assess credit risk exposure and monitor macroeconomic indicators that may impact borrower behavior and repayment capacity. Management believes the current allowance for credit losses is appropriate given the composition and performance of the loan portfolio.

At March 31, 2026, the allowance for credit losses on unfunded loan commitments was $1.2 million compared to $1.3 million at December 31, 2025, due to a lower amount of available loan commitments.

The Company believes its owner occupied and non-owner occupied commercial real estate portfolios continue to be of sound credit quality. The following table demonstrates their strong debt-service-coverage and loan-to-value ratios as of March 31, 2026.

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

54.0

3.2

68,336

47.5

2.2

110,270

Office

57.5

3.7

133

84,129

47.5

1.7

105,145

Retail

61.0

3.0

75,998

50.6

1.8

141

442,845

Church

24.2

2.3

25,852

70.8

3.0

5,590

Hotel/Motel

- -

50.4

1.5

82,152

Other (4)

41.7

3.7

67,543

45.6

2.3

16,156

Total

288

321,858

266

762,158

(1)

Loan-to-value is determined at origination date and is divided by principal balance as of March 31, 2026.

(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 March 31, 2026:

Non-owner occupied office: Geography

Geography

Commitment

(in thousands)

Percentage

Virginia

$68,064

64.0

Maryland

24,014

22.6

14,246

13.4

Total

$106,324

100.0

Non-owner occupied office: Maturity

Maturity

Year

Commitment

(in thousands)

Percentage

2026

$2,728

2.6

2027

6,523

6.2

2028

14,063

13.2

2029

26,292

24.7

2030+

56,718

53.3

Total

$106,324

100.0

Income Statement Review

Quarterly Results

The Company reported net income of $6.1 million for the first quarter of 2026, an increase of $1.3 million or 26.8% when compared to $4.8 million for the first quarter of 2025.

For the three months ended March 31, 2026, net interest income increased $2.4 million or 17.1% to $16.5 million compared to $14.1 million for the three months ended March 31, 2025. During the same period, interest income grew $1.8 million or 6.5%, driven by higher interest income on loans, while interest expense declined by $0.6 million or 4.8%, predominantly due to lower interest expense on time deposits, interest-bearing checking accounts and money market accounts.

The annualized net interest margin for the first quarter of 2026 was 2.87% compared to 2.58% for the same period in 2025. The increase in net interest margin was primarily due to increases in average balances and yields of the loan portfolio, coupled with lower rates on interest-bearing deposits.

The cost of interest-bearing liabilities was 3.15% for the first quarter of 2026 compared to 3.48% for the same quarter in the prior year driven by the 34 basis points decline in rates on interest-bearing deposits. Rates declined across all deposit categories, most notably in money market accounts, time deposits and interest-bearing demand deposits, which declined by 37 basis points, 36 basis points, and 31 basis points, respectively. The yield on interest-earning assets was 5.07% for the first quarter of 2026 compared to 4.99% for the same period in 2025 primarily due to an eight basis point increase in loan yield coupled with a 28 basis point increase in securities yield. These increases were partially offset by a 76 basis points decrease in yield on interest-bearing deposits in other banks, as a result of three federal funds rate cuts totaling 75 basis points during the previous year. Average loans increased by $105.9 million between the three months ended March 31, 2026 and the three months ended March 31, 2025, which was primarily attributable to origination volume in the construction & development and residential mortgage loan portfolios subsequent to March 31, 2025.

The Company recorded a $23 thousand provision for credit losses for the first quarter of 2026 compared to $170 thousand for the first quarter of 2025. Provision for credit losses on funded loans totaled $143 thousand, while provision for credit losses on unfunded loan commitments was a recovery of $120 thousand during the three months ended March 31, 2026. The provision for credit losses on funded loans during the most recent quarter reflected the change in the Company’s loan portfolio mix quarter-over-quarter along with the updated forecasted economic variables utilized in the quantitative portion of the allowance calculation. Recovery of the provision for credit losses on unfunded loan commitments was due to lower amount of available loan commitments at March 31, 2026 as compared to December 31, 2025.

Non-interest income decreased $221 thousand or 43.8% during the first quarter of 2026 compared to the first quarter of 2025. This decrease was primarily attributable to a $149 thousand decrease in insurance commissions, in combination with a $37 thousand decrease in mark-to-market adjustments on investments related to the Company’s nonqualified deferred compensation plan and a $30 thousand decline in gains recorded on sales of the guaranteed portions of the SBA 7(a) loans.

Non-interest expense increased $0.7 million or 8.2% during the first quarter of 2026 compared to the first quarter of 2025 primarily resulting from an increase in salaries and employee benefits and higher other expenses. Salaries and employee benefits increased by $522 thousand, which was mainly related to increases in headcount within the Bank during the preceding twelve months and an annual salary merit increase in combination with lower direct loan origination costs when compared to the same period of the prior year. Salaries and employee benefit expense is reduced to account for the portion of salary costs incurred to originate a loan and are subsequently amortized into interest income to match the costs incurred with the economic benefit derived from originating a loan. Other expenses increased by $124 thousand mainly due to higher franchise tax and FDIC insurance, due to higher assessment bases, partially offset by lower marketing expense.

For the three months ended March 31, 2026, annualized non-interest expense to average assets was 1.54% compared to 1.50% for the three months ended March 31, 2025. This increase was primarily due to the growth in non-interest expense outpacing the growth in average assets during the period. For the three months ended March 31, 2026, the efficiency ratio declined to 53.1% compared to 56.5% for the three months ended March 31, 2025. The improvement in the efficiency ratio was due to a 15.0% growth in total revenue, which outpaced an 8.2% increase in non-interest expense over the period.

Return on average assets for the quarter ended March 31, 2026 was 1.06% and return on average equity was 9.19% compared to 0.87% and 7.76%, respectively, for the first quarter of 2025.

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 consumers in the Washington, D.C. Metropolitan area. The Bank offers a comprehensive line of sophisticated banking products and services 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 commercial real estate, trade contractors, government contractors, health services, nonprofits, private and charter schools, professional services, property management, community associations, and title and escrow services. Learn more at www.johnmarshallbank.com. Follow the Bank on LinkedIn at: https://www.linkedin.com/company/john-marshall-bank/.

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 shutdowns 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 purposes 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

March 31

2026

2025

Selected Balance Sheet Data

Cash and cash equivalents

150,193

169,060

Total investment securities

224,367

226,163

Loans, net of unearned income

1,973,743

1,870,472

Allowance for loan credit losses

19,983

18,826

Total assets

2,352,350

2,272,432

Non-interest bearing demand deposits

458,197

437,822

Interest-bearing deposits

1,529,531

1,484,353

Total deposits

1,987,728

1,922,175

Federal Home Loan Bank advances

56,000

Shareholders' equity

268,147

252,958

Summary Results of Operations

Interest income

29,082

27,305

Interest expense

12,573

13,208

Net interest income

16,509

14,097

Provision for credit losses

170

Net interest income after provision for credit losses

16,486

13,927

Non-interest income

284

505

Non-interest expense

8,923

8,248

Income before income taxes

7,847

6,184

Net income

6,101

4,810

Per Share Data and Shares Outstanding

Earnings per common share - basic

0.43

0.34

Earnings per common share - diluted

0.43

0.34

Book value per share

19.00

17.72

Weighted average common shares (basic)

14,125,649

14,223,046

Weighted average common shares (diluted)

14,125,649

14,241,114

Common shares outstanding at end of period

14,112,259

14,275,885

Performance Ratios

Return on average assets (annualized)

1.06

0.87

Return on average equity (annualized)

9.19

7.76

Net interest margin (annualized)

2.87

2.58

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

0.05

0.09

Non-interest expense to average assets (annualized)

1.54

1.50

Efficiency ratio

53.1

56.5

Asset Quality

Non-performing assets to total assets

0.04

- -

Non-performing loans to total loans

0.05

- -

Allowance for loan credit losses to non-performing assets

20.3

- -

Allowance for loan credit losses to total loans

1.01

Net recoveries to average loans (annualized)

0.01

- -

Loans 30-89 days past due and accruing interest

450

- -

90 days past due and still accruing interest

- -

Non-accrual loans

984

- -

Other real estate owned

- -

Non-performing assets (1)

984

- -

Capital Ratios (Bank Level)

Equity / assets

12.2

11.9

Total risk-based capital ratio

16.5

Tier 1 risk-based capital ratio

15.4

Common equity tier 1 ratio

15.4

Leverage ratio

12.6

Other Information

Number of full time equivalent employees

139

136

# Full service branch offices

(1)

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

March 31

December 31,

March 31

Last Three

Year Over

2026

2025

Months

Year

Assets

(Unaudited)

Cash and due from banks

9,132

6,492

10,541

40.7

(13.4)

Interest-bearing deposits in banks

141,061

123,482

158,519

14.2

(11.0)

Securities available-for-sale, at fair value

126,166

123,852

124,469

1.9

1.4

Securities held-to-maturity at amortized cost, fair value of $76,669, $77,575, and $77,455 at 3/31/2026, 12/31/2025, and 3/31/2025, respectively

87,598

88,421

91,172

(0.9)

(3.9)

Restricted securities, at cost

7,717

7,644

7,634

- -

1.1

Equity securities, at fair value

2,886

2,843

2,888

1.5

(0.1)

Loans, net of unearned income

1,973,743

1,975,360

1,870,472

(0.1)

5.5

Allowance for loan credit losses

(19,983)

(19,805)

(18,826)

0.9

6.1

Net loans

1,953,760

1,955,555

1,851,646

(0.1)

5.5

Bank premises and equipment, net

1,191

1,315

1,484

(9.4)

(19.7)

Accrued interest receivable

6,071

5,890

5,902

3.1

2.9

Right of use assets

4,289

4,551

4,752

(5.8)

(9.7)

Other assets

12,479

12,505

13,425

(0.2)

(7.0)

Total assets

2,352,350

2,332,550

2,272,432

0.8

3.5

Liabilities and Shareholders' Equity

Liabilities

Deposits:

Non-interest bearing demand deposits

458,197

432,733

437,822

5.9

4.7

Interest-bearing demand deposits

734,164

745,323

705,386

(1.5)

4.1

Savings deposits

33,525

34,683

42,583

(3.3)

(21.3)

Time deposits

761,842

759,546

736,384

0.3

3.5

Total deposits

1,987,728

1,972,285

1,922,175

0.8

3.4

Federal Home Loan Bank advances

56,000

- -

Subordinated debt, net

24,896

24,875

24,812

0.1

0.3

Accrued interest payable

1,988

2,124

2,072

(6.4)

(4.1)

Lease liabilities

4,542

4,819

5,101

(5.7)

(11.0)

Other liabilities

9,049

6,809

9,314

32.9

(2.8)

Total liabilities

2,084,203

2,066,912

2,019,474

0.8

3.2

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, 14,112,259 at 3/31/2026 including 68,207 unvested shares, 14,214,603 at 12/31/2025 including 68,547 unvested shares, and 14,275,885 at 3/31/2025 including 50,419 unvested shares

140

141

142

(0.7)

(1.4)

Additional paid-in capital

93,796

95,699

97,310

(2.0)

(3.6)

Retained earnings

181,736

176,913

164,761

2.7

10.3

Accumulated other comprehensive loss

(7,525)

(7,115)

(9,255)

5.8

(18.7)

Total shareholders' equity

268,147

265,638

252,958

0.9

6.0

Total liabilities and shareholders' equity

2,352,350

2,332,550

2,272,432

0.8

3.5

* 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

March 31,

2026

2025

% Change

(Unaudited)

Interest and Dividend Income

Interest and fees on loans

26,586

24,807

7.2

Interest on investment securities, taxable

1,165

1,032

12.9

Interest on investment securities, tax-exempt

- -

Dividends

116

123

(5.7)

Interest on deposits in other banks

1,206

1,334

(9.6)

Total interest and dividend income

29,082

27,305

6.5

Interest Expense

Deposits

11,673

12,300

(5.1)

Federal Home Loan Bank advances

551

559

(1)

Subordinated debt

349

- -

Total interest expense

12,573

13,208

(4.8)

Net interest income

16,509

14,097

17.1

Provision for Credit Losses

170

(86.5)

Net interest income after provision for credit losses

16,486

13,927

18.4

Non-interest Income

Service charges on deposit accounts

3.7

Other service charges and fees

138

153

(9.8)

Insurance commissions

213

(70.0)

Gain on sale of government guaranteed loans

(83.3)

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

(13)

N/M

Other income (loss)

(3)

N/M

Total non-interest income

284

505

(43.8)

Non-interest Expenses

Salaries and employee benefits

5,621

5,099

10.2

Occupancy expense of premises

406

407

(0.2)

Furniture and equipment expenses

346

316

9.5

Other expenses

2,550

2,426

5.1

Total non-interest expenses

8,923

8,248

8.2

Income before income taxes

7,847

6,184

26.9

Income Tax Expense

1,746

1,374

27.1

Net income

6,101

4,810

26.8

Earnings Per Share

Basic

0.43

0.34

26.5

Diluted

0.43

0.34

26.5

John Marshall Bancorp, Inc.

Historical Trends - Quarterly Financial Data (Unaudited)

(Dollar amounts in thousands, except per share data)

At or For the Three Months Ended

2026

2025

March 31

December 31

September 30

June 30

March 31

Profitability for the Quarter:

Interest income

29,082

29,164

28,945

27,843

27,305

Interest expense

12,573

13,224

13,345

12,917

13,208

Net interest income

16,509

15,940

15,600

14,926

14,097

Provision for credit losses

624

356

537

170

Non-interest income

284

409

653

507

505

Non-interest expenses

8,923

7,971

9,034

8,313

8,248

Income before income taxes

7,847

7,754

6,863

6,583

6,184

Income tax expense

1,746

1,838

1,459

1,480

1,374

Net income

6,101

5,916

5,404

5,103

4,810

Financial Performance:

Return on average assets (annualized)

1.06

1.01

0.94

0.91

0.87

Return on average equity (annualized)

9.19

8.89

8.31

8.06

7.76

Net interest margin (annualized)

2.87

2.73

2.72

2.69

2.58

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

0.05

0.07

0.11

0.09

Non-interest expense to average assets (annualized)

1.54

1.36

1.57

1.49

1.50

Efficiency ratio

53.1

48.8

55.6

53.9

56.5

Per Share Data:

Earnings per common share - basic

0.43

0.42

0.38

0.36

0.34

Earnings per common share - diluted

0.43

0.42

0.38

0.36

0.34

Book value per share

19.00

18.69

18.27

17.83

17.72

Dividends declared per share

0.09

- -

0.30

- -

Weighted average common shares (basic)

14,125,649

14,142,249

14,172,953

14,221,597

14,223,046

Weighted average common shares (diluted)

14,125,649

14,142,249

14,172,953

14,223,418

14,241,114

Common shares outstanding at end of period

14,112,259

14,214,603

14,216,781

14,231,389

14,275,885

Non-interest Income:

Service charges on deposit accounts

Other service charges and fees

138

142

135

141

153

Insurance commissions

213

Gain on sale of government guaranteed loans

119

106

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

(13)

158

182

Other income (loss)

109

(3)

Total non-interest income

284

409

653

507

505

Non-interest Expenses:

Salaries and employee benefits

5,621

4,758

5,693

5,178

5,099

Occupancy expense of premises

406

326

405

407

Furniture and equipment expenses

346

326

329

315

316

Other expenses

2,550

2,561

2,607

2,413

2,426

Total non-interest expenses

8,923

7,971

9,034

8,313

8,248

Balance Sheets at Quarter End:

Total loans, net of unearned income

1,973,743

1,975,360

1,938,108

1,916,915

1,870,472

Allowance for loan credit losses

(19,983)

(19,805)

(19,714)

(19,298)

(18,826)

Investment securities

224,367

222,760

216,119

226,495

226,163

Interest-earning assets

2,339,171

2,321,602

2,309,005

2,250,921

2,255,154

Total assets

2,352,350

2,332,550

2,324,544

2,267,953

2,272,432

Total deposits

1,987,728

1,972,285

1,968,828

1,896,893

1,922,175

Total interest-bearing liabilities

1,610,427

1,620,427

1,602,757

1,555,598

1,565,165

Total shareholders' equity

268,147

265,638

259,692

253,732

252,958

Quarterly Average Balance Sheets:

Total loans, net of unearned income

1,974,165

1,946,386

1,912,275

1,868,290

1,868,303

Investment securities

225,904

220,324

221,802

229,171

231,479

Interest-earning assets

2,331,813

2,319,551

2,275,386

2,224,806

2,220,730

Total assets

2,343,457

2,331,563

2,289,352

2,238,955

2,233,761

Total deposits

1,977,321

1,970,486

1,934,456

1,883,425

1,884,969

Total interest-bearing liabilities

1,618,347

1,601,506

1,571,390

1,530,811

1,540,974

Total shareholders' equity

269,327

264,175

257,993

254,071

251,559

Financial Measures:

Average equity to average assets

11.5

11.3

Investment securities to earning assets

9.6

9.4

10.1

10.0

Loans to earning assets

84.4

85.1

83.9

85.2

82.9

Loans to assets

83.9

84.7

83.4

84.5

82.3

Loans to deposits

99.3

100.2

98.4

101.1

97.3

Capital Ratios (Bank Level):

Equity / assets

12.2

12.1

12.2

11.9

Total risk-based capital ratio

16.5

16.3

16.6

16.3

16.5

Tier 1 risk-based capital ratio

15.4

15.2

15.5

15.3

15.4

Common equity tier 1 ratio

15.4

15.2

15.5

15.3

15.4

Leverage ratio

12.6

12.5

12.7

12.8

12.6

John Marshall Bancorp, Inc.

Loan, Deposit and Borrowing Detail (Unaudited)

(Dollar amounts in thousands)

2026

2025

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

Commercial business loans

48,905

2.5

49,729

2.5

46,486

2.4

43,158

2.3

46,479

2.5

Commercial PPP loans

- -

124

0.0

124

0.0

124

0.0

124

0.0

Commercial owner-occupied real estate loans

321,858

16.3

323,486

16.4

327,269

16.9

320,061

16.7

318,087

17.1

Total business loans

370,763

18.8

373,339

18.9

373,879

19.3

363,343

19.0

364,690

19.6

Investor real estate loans

762,158

38.8

756,620

38.5

770,405

39.9

777,591

40.7

759,002

40.7

Construction & development loans

228,591

11.6

222,659

11.3

193,444

10.0

186,409

9.7

173,270

9.3

Multi-family loans

92,913

4.7

93,511

4.7

93,477

4.8

94,415

4.9

95,556

5.1

Total commercial real estate loans

1,083,662

55.1

1,072,790

54.5

1,057,326

54.7

1,058,415

55.3

1,027,828

55.1

Residential mortgage loans

513,650

26.1

522,990

26.5

501,104

25.9

489,522

25.6

472,747

25.3

Consumer loans

760

0.0

1,157

0.1

1,029

0.1

998

0.1

809

0.0

Total loans

1,968,835

100.0

1,970,276

100.0

1,933,338

100.0

1,912,278

100.0

1,866,074

100.0

Less: Allowance for loan credit losses

(19,983)

(19,805)

(19,714)

(19,298)

(18,826)

Net deferred loan costs

4,908

5,084

4,770

4,637

4,398

Net loans

1,953,760

1,955,555

1,918,394

1,897,617

1,851,646

2026

2025

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

Non-interest bearing demand deposits

458,197

23.1

432,733

21.9

446,925

22.7

438,628

23.1

437,822

22.8

Interest-bearing demand deposits:

NOW accounts (1)

362,057

18.2

380,029

19.3

366,655

18.6

344,931

18.2

355,752

18.5

Money market accounts (1)

372,107

18.7

365,294

18.5

360,640

18.3

336,299

17.7

349,634

18.2

Savings accounts

33,525

1.7

34,683

1.8

39,427

2.0

42,966

2.3

42,583

2.2

Certificates of deposit

$250,000 or more

340,851

17.1

337,605

17.1

337,800

17.2

324,343

17.1

322,630

16.8

Less than $250,000

80,058

4.0

84,710

4.3

85,719

4.4

80,500

4.2

79,305

4.1

QwickRate® certificates of deposit

- -

0.0

249

0.0

249

0.0

249

0.1

249

0.0

IntraFi® certificates of deposit

39,047

2.0

35,096

1.8

29,451

1.5

27,015

1.4

36,522

1.9

Brokered deposits

301,886

15.2

301,886

15.3

301,962

15.3

301,962

15.9

297,678

15.5

Total deposits

1,987,728

100.0

1,972,285

100.0

1,968,828

100.0

1,896,893

100.0

1,922,175

100.0

Borrowings

Federal funds purchased

- -

0.0

- -

0.0

- -

0.0

16,500

17.0

- -

0.0

Federal Home Loan Bank advances

56,000

69.2

56,000

69.2

56,000

69.3

56,000

57.5

56,000

69.3

Subordinated debt, net

24,896

30.8

24,875

30.8

24,854

30.7

24,833

25.5

24,812

30.7

Total borrowings

80,896

100.0

80,875

100.0

80,854

100.0

97,333

100.0

80,812

100.0

Total deposits and borrowings

2,068,624

2,053,160

2,049,682

1,994,226

2,002,987

Core customer funding sources (2)

1,685,842

82.5

1,670,150

82.3

1,666,617

82.3

1,594,682

81.0

1,624,248

82.1

Wholesale funding sources (3)

357,886

17.5

358,135

17.7

358,211

17.7

374,711

19.0

353,927

17.9

Total funding sources

2,043,728

100.0

2,028,285

100.0

2,024,828

100.0

1,969,393

100.0

1,978,175

100.0

(1)

Includes IntraFi ® accounts.

(2)

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

(3)

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)

Three Months Ended March 31, 2026

Three Months Ended March 31, 2025

Interest Income /

Average

Interest Income /

Average

(Dollars in thousands)

Average Balance

Expense

Rate (3)

Average Balance

Expense

Rate (3)

Assets:

Securities:

Taxable

224,526

1,281

2.31

230,100

1,155

2.04

Tax-exempt (1)

1,378

3.24

1,379

3.24

Total securities

225,904

1,292

2.32

231,479

1,166

2.04

Loans, net of unearned income (2):

Taxable

1,953,760

26,403

5.48

1,851,627

24,679

5.41

Tax-exempt (1)

20,405

232

4.61

16,676

162

3.94

Total loans, net of unearned income

1,974,165

26,635

5.47

1,868,303

24,841

5.39

Interest-bearing deposits in other banks

131,744

1,206

3.71

120,948

1,334

4.47

Total interest-earning assets

2,331,813

29,133

5.07

2,220,730

27,341

4.99

Total non-interest earning assets

11,644

13,031

Total assets

2,343,457

2,233,761

Liabilities & Shareholders’ Equity:

Interest-bearing deposits

NOW accounts

371,418

1,926

2.10

357,206

2,127

2.41

Money market accounts

374,848

2,183

2.36

339,248

2,281

2.73

Savings accounts

34,972

0.80

43,062

104

0.98

Time deposits

756,391

7,495

4.02

720,658

7,788

4.38

Total interest-bearing deposits

1,537,629

11,673

3.08

1,460,174

12,300

3.42

Federal funds purchased

—

N/M

—

N/M

Subordinated debt

24,883

349

5.69

24,799

349

5.71

Federal Home Loan Bank advances

55,834

551

4.00

56,001

559

4.05

Total interest-bearing liabilities

1,618,347

12,573

3.15

1,540,974

13,208

3.48

Demand deposits

439,692

424,795

Other liabilities

16,091

16,433

Total liabilities

2,074,130

1,982,202

Shareholders’ equity

269,327

251,559

Total liabilities and shareholders’ equity

2,343,457

2,233,761

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

16,560

1.92

14,133

1.51

Less: tax-equivalent adjustment

Net interest income and spread (GAAP)

16,509

1.91

14,097

1.51

Interest income/earning assets

5.06

4.99

Interest expense/earning assets

2.19

2.41

Net interest margin

2.87

2.58

(1)

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 $51 thousand and $36 thousand for the three months ended March 31, 2026 and March 31, 2025, respectively.

(2)

Non-accrual loans are included in the average balances.

(3)

Rates and yields are annualized and calculated from rounded amounts in thousands, which appear above.

Category: Earnings