On July 24, 2024, John Marshall Bancorp Inc (JMSB, Financial) released its 8-K filing for the quarter ended June 30, 2024. John Marshall Bancorp Inc provides banking services, offering a range of financial products to small to medium-sized businesses, professional corporations, non-profits, and individuals in the Washington, D.C. metropolitan area.
Performance and Challenges
John Marshall Bancorp Inc (JMSB, Financial) reported net income of $3.9 million ($0.27 per diluted common share) for Q2 2024, a decrease from $4.5 million in Q2 2023. For the six months ended June 30, 2024, net income was $8.1 million ($0.57 per diluted common share), down from $10.8 million in the same period of 2023. The decline in net income is attributed to increased interest expenses and a decrease in non-interest income.
Financial Achievements
Despite the decline in net income, JMSB achieved a notable improvement in its net interest margin, which increased to 2.19% in Q2 2024 from 2.09% in Q2 2023. This improvement was driven by higher yields on interest-earning assets. The company also reported strong core deposit growth, with non-interest bearing demand deposits increasing by 32.3% on an annualized basis during the quarter.
Key Financial Metrics
Key details from the financial statements include:
| Metric | Q2 2024 | Q2 2023 | Change |
|---|---|---|---|
| Total Assets | $2.27 billion | $2.36 billion | -4.0% |
| Total Loans | $1.83 billion | $1.77 billion | +3.2% |
| Total Deposits | $1.91 billion | $2.05 billion | -6.8% |
| Net Interest Income | $12.1 million | $12.0 million | +0.8% |
| Net Income | $3.9 million | $4.5 million | -13.3% |
Commentary and Analysis
"The second quarter of 2024 reflects improvements in margin and net interest income as a result of purposeful actions we have taken in combating an unprecedented rate environment. Our non-interest income initiatives are growing and contributing an increasing percentage of revenue. I remain optimistic about our growth for the remainder of the year given the strong loan pipeline and opportunities we are seeing in the market." - Chris Bergstrom, President and Chief Executive Officer.
The company's balance sheet remains highly liquid, with a liquidity position of $796.0 million as of June 30, 2024, representing 35.1% of total assets. This strong liquidity position is crucial for maintaining operational stability and meeting customer demands.
Income Statement Review
For Q2 2024, JMSB reported net interest income of $12.1 million, a slight increase from $12.0 million in Q2 2023. The annualized net interest margin improved to 2.19%, driven by higher yields on interest-earning assets. However, the cost of interest-bearing liabilities also increased, impacting overall profitability.
Non-interest income decreased by $130 thousand compared to Q2 2023, primarily due to lower bank owned life insurance income and unfavorable mark-to-market adjustments on investments related to the company's nonqualified deferred compensation plan.
Balance Sheet and Credit Quality
As of June 30, 2024, total assets were $2.27 billion, a decrease from $2.36 billion in the previous year. Total loans increased by 3.2% to $1.83 billion, driven by growth in the residential mortgage and investor real estate loan portfolios. The company's allowance for loan credit losses was $18.4 million, representing 1.01% of outstanding loans.
John Marshall Bancorp Inc (JMSB, Financial) continues to maintain a strong capital position, with a total risk-based capital ratio of 16.4% as of June 30, 2024, well above regulatory thresholds for well-capitalized banks.
For more detailed financial information, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from John Marshall Bancorp Inc for further details.
