RESTON, Va.--(BUSINESS WIRE)--John Marshall Bank (OTCQB: JMSB) (the “Bank”) reported net income of $8.9 million for the year ended December 31, 2015, an increase of $848 thousand, or 10.6%, as compared to net income of $8.0 million for the year ended December 31, 2014. Net income per diluted share increased 10.4% during 2015 to $0.85 per share, compared to $0.77 per share during 2014, as adjusted for the 6 for 5 stock split in the form of a 20% dividend paid July 1, 2015. As of December 31, 2015, the Bank’s tangible book value per share was $10.91, up 9.1% compared to $10.00 as of December 31, 2014, as adjusted for the 6 for 5 stock split in the form of a 20% dividend paid July 1, 2015.
For the fourth quarter of 2015, the Bank reported net income of $2.3 million, a 5.7% increase as compared to the same period in 2014. The Bank’s fourth quarter results produced an annualized return of 1.02% on average assets and 8.44% on average equity, compared to 1.14% and 8.78%, respectively, for the same period a year ago. For the twelve months ended December 31, the Bank produced a 1.04% return on average assets and 8.44% on average equity, compared to 1.11% and 8.38%, respectively during 2014.
The Bank’s capital ratios remain well above regulatory minimums for well capitalized banks. As of December 31, 2015, the Bank’s total risk-based capital ratio was 13.6%, compared to 14.0% at December 31, 2014.
Balance Sheet Review
At December 31, 2015, total assets were $928.6 million, an increase of $141.8 million, or 18.0%, from total assets of $786.8 million at December 31, 2014. Gross loans increased $98.6 million, or 14.4%, to $783.2 million at December 31, 2015, compared to $684.6 million at December 31, 2014. The Bank’s investment portfolio increased to $84.8 million at December 31, 2015, compared to $68.8 million at December 31, 2014. As of December 31, 2015 the Bank held $46.5 million of its investment portfolio as held-to-maturity, and $32.1 million as available-for-sale.
Total deposits were $730.9 million at December 31, 2015, representing an increase of 18.3%, or $113.3 million, compared to $617.6 million at December 31, 2014. Total borrowings, consisting of Federal Home Loan Bank advances and customer repurchase agreements, were $83.0 million at December 31, 2015, an increase of 28.8%, or $18.6 million, compared to $64.4 million at December 31, 2014.
During 2015, certificates of deposit obtained through a deposit listing service provided by QwickRate, Inc. increased by $9.4 million. Brokered certificates of deposit increased by $1.2 million during 2015 and increased by $2.4 million, or 11.7% since September 30, 2015. Federal Home Loan Bank advances increased by $19.0 million, or 36.5%, during 2015. Core customer funding sources increased by $102.2 million, or 17.2% during 2015.
Total shareholders’ equity was $109.3 million at December 31, 2015, an increase of $9.7 million, or 9.7%, compared to $99.6 million at December 31, 2014. The increase in shareholder’ equity was due to net income of $8.9 million during 2015, and net proceeds from the exercise of 23,850 employee stock options during the year. Total common shares outstanding increased from 9,966,103 at December 31, 2014 to 10,016,574 at December 31, 2015, as adjusted for the 6 for 5 stock split in the form of a 20% dividend paid July 1, 2015.
Income Statement Review
Net interest income
Net interest income, the Bank’s primary source of revenue, was $33.7 million for the year ended December 31, 2015, up 12.4% from $30.0 million for the year ended December 31, 2014. The net interest margin was 4.01% for the year ended December 31, 2015 as compared to 4.24% for the year ended December 31, 2014. The decline in the net interest margin during 2015 is primarily attributed to a decline in the Bank’s yield on earning assets to 4.64% during 2015 from 4.85% in 2014, which is substantially the result of a 26 basis point year-over-year decline in loan yield and a 26 basis point decline in securities yield. The average balance for loans, net of unearned income increased $115.0 million and securities increased $22.2 million from December 31, 2014 to December 31, 2015. During the fourth quarter of 2015, a large increase in cash and interest bearing deposits in other banks also contributed to the decline in the margin.
Net interest income was $8.7 million for the fourth quarter of 2015, compared to $8.0 million for the same period in 2014. The net interest margin declined from 4.24% during the fourth quarter of 2014 to 3.88% during the fourth quarter of 2015. The decline in the net interest margin is mostly attributed to the decline in the Bank’s yield on loans from 5.24% during the fourth quarter of 2014 to 4.96% during the fourth quarter of 2015.
Notwithstanding the decline in the net interest margin over the past year, net interest income increased by 12.4% during 2015, compared to 2014, resulting primarily from a $131.5 million, or 18.6%, increase in average earning assets from December 31, 2015, compared to December 31, 2014.
Provision for loan losses
The Bank recognized a provision for loan losses of $1.2 million for the year ended December 31, 2015, compared to provision of $1.0 million for the year ended December 31, 2014. The Bank’s provision for loan losses was $145 thousand during the fourth quarter of 2015, compared to $302 thousand during the same period in 2014. In addition, the Bank reported net loan charge-offs of $573 thousand during 2015, compared to $260 thousand in 2014. The loan charge-offs reported in 2015 were on two commercial loans that were already on non-accrual status and the estimated impairment had been fully reserved in prior periods.
Noninterest income
The Bank’s primary source of noninterest income is service charges on deposit accounts. Loan fees are included in interest income on the loan portfolio and not reported as noninterest income. For the year ended December 31, 2015, the Bank reported total noninterest income of $579 thousand, compared to $466 thousand during the year ended December 31, 2014, an increase of 24.2%. For the three months ended December 31, 2015, the Bank’s noninterest income was $157 thousand, compared to $125 thousand during the same period in 2014.
Noninterest expense
The largest component of the Bank’s noninterest expense is employee salaries and benefits. Salaries and employee benefits expense increased by 12.5% during 2015 to $11.4 million, compared to $10.2 million during 2014. All other operating expense increased by $991 thousand during 2015, from $6.9 million in 2014 to $7.9 million in 2015, an increase of 14.4%.
For the three months ended December 31, 2015, salary and benefits expense increased 7.4% to $2.9 million, compared to $2.7 million for the same period in 2014. All other noninterest expenses totaled $2.3 million during the fourth quarter of 2015, an increase of 26.0% compared to $1.8 million reported for the same period in 2014.
The increase in salary and benefits expense was due to additional staffing required to support the Bank’s growth. The increase in occupancy expense and furniture and equipment was associated with the expansion of our Reston corporate/operations office during the past year. Other operating expense increased due to data processing and technology related expenses associated with our impending core conversion in April 2016 as well as a growing customer base. The Bank incurred $247 thousand in expenses related to other real estate owned in 2015, of which $147 thousand was an impairment charge prior to the sale of the property and an additional loss of $33 thousand when the property was sold in December. There was no other real estate owned expense in 2014.
Asset Quality Review
Asset quality remains strong and better than the Bank’s peers. As of December 31, 2015, non-performing assets were 0.32% of total assets, up from 0.22% at December 31, 2014. The Bank’s allowance for loan losses covered non-performing loans by 2.4 times as of December 31, 2015, compared to 3.7 times as of December 31, 2014. The increase in non-performing assets is related to the reclassification of $2.5 million of residential real estate investment loans to non-accrual status during the fourth quarter of 2015. The loans are to one customer and are well secured. The Bank does not anticipate any loss related to these loans.
As of December 31, 2015 and 2014 there were no loans 30-89 days past due and still accruing interest. As of December 31, 2015 the Bank had total troubled debt restructurings of $1.5 million, compared to $1.8 million at December 31, 2014. All troubled debt restructurings were performing in accordance with modified terms as of December 31, 2015. There was no other real estate owned as of December 31, 2015 and 2014.
John Marshall Bank is headquartered in Reston, Virginia and has five full-service branches located in Reston, Leesburg, Arlington, Alexandria and Rockville. The Bank also has a limited-service commercial branch located in Washington, DC. Further information on the Bank can be obtained by visiting its website at www.johnmarshallbank.com.
This press release contains forward-looking statements within the meaning of the Securities and Exchange Act of 1934, as amended, including statements of goals, intentions, and expectations as to future trends, plans, events or results of Bank operations and policies and regarding general economic conditions. In some cases, forward-looking statements can be identified by use of words such as “may,” “will,” “anticipates,” “believes,” “expects,” “plans,” “estimates,” “potential,” “continue,” “should,” and similar words or phrases. These statements are based upon current and anticipated economic conditions, nationally and in the Bank’s market, interest rates and interest rate policy, competitive factors, and other conditions which by their nature, are not susceptible to accurate forecast, and are subject to significant uncertainty. Because of these uncertainties and the assumptions on which this discussion and the forward-looking statements are based, actual future operations and results may differ materially from those indicated herein. Readers are cautioned against placing undue reliance on any such forward-looking statements. The Bank’s past results are not necessarily indicative of future performance.
| John Marshall Bank | ||||||||||||||||||
| Balance Sheets | ||||||||||||||||||
| (In thousands, except share and per share data) | ||||||||||||||||||
| % Change | ||||||||||||||||||
| December 31, | September 30, | December 31, | Last Three | Year Over | ||||||||||||||
| 2015 | 2015 | 2014 | Months | Year | ||||||||||||||
| Assets | (Unaudited) | (Unaudited) | (Audited) | |||||||||||||||
| Cash and due from banks | $ | 8,217 | $ | 5,581 | $ | 10,799 | 47.2 | % | -23.9 | % | ||||||||
| Interest-bearing deposits in banks | 46,738 | 19,961 | 17,786 | 134.1 | % | 162.8 | % | |||||||||||
| Securities available-for-sale, at fair value | 32,145 | 33,384 | 13,482 | -3.7 | % | 138.4 | % | |||||||||||
|
Securities held-to-maturity, fair value of $46,780 at 12/31/2015, $48,267 at 9/30/2015 and $50,499 at 12/31/2014 |
46,479 | 47,610 | 49,934 | -2.4 | % | -6.9 | % | |||||||||||
| Restricted securities, at cost | 6,210 | 6,168 | 5,401 | 0.7 | % | 15.0 | % | |||||||||||
|
Loans, net of allowance for loan losses of $7,130 at 12/31/2015; $6,937 at 9/30/2015 and $6,506 at 12/31/2014 |
774,633 | 757,976 | 676,777 | 2.2 | % | 14.5 | % | |||||||||||
| Bank premises and equipment, net | 2,690 | 2,744 | 3,041 | -2.0 | % | -11.5 | % | |||||||||||
| Accrued interest receivable | 2,318 | 2,290 | 2,168 | 1.2 | % | 6.9 | % | |||||||||||
| Other real estate owned |
-- |
998 |
-- |
-- | -- | |||||||||||||
| Other assets | 9,190 | 7,825 | 7,450 | 17.4 | % | 23.4 | % | |||||||||||
| Total assets | $ | 928,620 | $ | 884,537 | $ | 786,838 | 5.0 | % | 18.0 | % | ||||||||
| Liabilities and Shareholders' Equity | ||||||||||||||||||
| Liabilities | ||||||||||||||||||
| Deposits: | ||||||||||||||||||
| Non-interest bearing demand deposits | $ | 136,361 | $ | 130,844 | $ | 121,219 | 4.2 | % | 12.5 | % | ||||||||
| Interest bearing demand deposits | 235,313 | 219,367 | 198,438 | 7.3 | % | 18.6 | % | |||||||||||
| Savings deposits | 17,154 | 5,717 | 6,500 | 200.1 | % | 163.9 | % | |||||||||||
| Time deposits | 342,025 | 334,998 | 291,456 | 2.1 | % | 17.4 | % | |||||||||||
| Total deposits | 730,853 | 690,926 | 617,613 | 5.8 | % | 18.3 | % | |||||||||||
| Repurchase agreements | 11,972 | 11,822 | 12,404 | 1.3 | % | -3.5 | % | |||||||||||
| Federal Home Loan Bank advances | 71,000 | 70,000 | 52,000 | 1.4 | % | 36.5 | % | |||||||||||
| Accrued interest payable | 109 | 118 | 132 | -7.6 | % | -17.4 | % | |||||||||||
| Other liabilities | 5,384 | 4,727 | 5,040 | 13.9 | % | 6.8 | % | |||||||||||
| Total liabilities | 819,318 | 777,593 | 687,189 | 5.4 | % | 19.2 | % | |||||||||||
| Shareholders' Equity | ||||||||||||||||||
|
Common stock, voting, par value $5 per share; authorized 20,000,000 shares; issued and outstanding, 10,016,574 shares at 12/31/2015, 10,011,624 shares at 9/30/2015, and 8,305,086 at 12/31/2014 |
50,083 | 50,058 | 41,525 | 0.0 | % | 20.6 | % | |||||||||||
| Additional paid-in capital | 31,313 | 31,149 | 39,023 | 0.5 | % | -19.8 | % | |||||||||||
| Retained earnings | 28,153 | 25,839 | 19,288 | 9.0 | % | 46.0 | % | |||||||||||
| Accumulated other comprehensive loss | (247 | ) | (102 | ) | (187 | ) | -141.5 | % | -32.1 | % | ||||||||
| Total shareholders' equity | 109,302 | 106,944 | 99,649 | 2.2 | % | 9.7 | % | |||||||||||
| Total liabilities and shareholders' equity | $ | 928,620 | $ | 884,537 | $ | 786,838 | 5.0 | % | 18.0 | % | ||||||||
| John Marshall Bank | ||||||||||||||||||||
| Statements of Income | ||||||||||||||||||||
| (Dollar amounts in thousands, except per share data) | ||||||||||||||||||||
| For the Three Months Ended | For the Twelve Months Ended | |||||||||||||||||||
| December 31, | December 31, | |||||||||||||||||||
| 2015 | 2014 (1) | % Change | 2015 | 2014 (1) | % Change | |||||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Audited) | |||||||||||||||||
| Interest and Dividend Income | ||||||||||||||||||||
| Interest and fees on loans | $ | 9,684 | $ | 8,755 | 10.6 | % | $ | 37,145 | $ | 32,873 | 13.0 | % | ||||||||
| Interest on investment securities, taxable | 321 | 274 | 17.2 | % | 1,280 | 1,061 | 20.6 | % | ||||||||||||
| Interest on investment securities, tax-exempt | 26 | 25 | 4.0 | % | 104 | 91 | 14.3 | % | ||||||||||||
| Dividends | 82 | 73 | 12.3 | % | 296 | 237 | 24.9 | % | ||||||||||||
| Interest on deposits in banks | 29 | 13 | 123.1 | % | 65 | 74 | -12.2 | % | ||||||||||||
| Total interest and dividend income | 10,142 |
|
9,140 | 11.0 | % | 38,890 | 34,336 | 13.3 | % | |||||||||||
| Interest Expense | ||||||||||||||||||||
| Deposits | 1,254 | 1,025 | 22.3 | % | 4,572 | 3,926 | 16.5 | % | ||||||||||||
| Federal Home Loan Bank advances | 175 | 109 | 60.6 | % | 580 | 392 | 48.0 | % | ||||||||||||
| Other short-term borrowings | 12 | 12 | 0.0 | % | 61 | 54 | 13.0 | % | ||||||||||||
| Total interest expense | 1,441 |
|
1,146 | 25.7 | % | 5,213 | 4,372 | 19.2 | % | |||||||||||
| Net interest income | 8,701 |
|
7,994 | 8.8 | % | 33,677 | 29,964 | 12.4 | % | |||||||||||
| Provision for loan losses | 145 | 302 | -52.0 | % | 1,197 | 1,018 | 17.6 | % | ||||||||||||
| Net interest income after provision for loan losses | 8,556 |
|
7,692 | 11.2 | % | 32,480 | 28,946 | 12.2 | % | |||||||||||
| Noninterest Income | ||||||||||||||||||||
| Service charges on deposit accounts | 113 | 110 | 2.7 | % | 482 | 409 | 17.8 | % | ||||||||||||
| Other service charges and fees | 15 | 15 | 0.0 | % | 68 | 57 | 19.3 | % | ||||||||||||
| Other operating income | 29 | - - | N/M | 29 | - - | N/M | ||||||||||||||
| Total noninterest income | 157 | 125 | 25.6 | % | 579 | 466 | 24.2 | % | ||||||||||||
| Noninterest Expenses | ||||||||||||||||||||
| Salaries and employee benefits | 2,865 | 2,667 | 7.4 | % | 11,421 | 10,154 | 12.5 | % | ||||||||||||
| Occupancy expense of premises | 437 | 400 | 9.3 | % | 1,781 | 1,581 | 12.7 | % | ||||||||||||
| Furniture and equipment expenses | 280 | 255 | 9.8 | % | 1,065 | 994 | 7.1 | % | ||||||||||||
| Other real estate owned expenses | 198 | - - | N/M | 247 | - - | N/M | ||||||||||||||
| Other operating expenses | 1,356 | 1,147 | 18.2 | % | 4,767 | 4,294 | 11.0 | % | ||||||||||||
| Total noninterest expenses | 5,136 | 4,469 | 14.9 | % | 19,281 | 17,023 | 13.3 | % | ||||||||||||
| Income before income taxes | 3,577 | 3,348 | 6.8 | % | 13,778 | 12,389 | 11.2 | % | ||||||||||||
| Income tax expense | 1,263 |
|
1,158 | 9.1 | % | 4,911 | 4,370 | 12.4 | % | |||||||||||
| Net income | $ | 2,314 | $ | 2,190 | 5.7 | % | $ | 8,867 | $ | 8,019 | 10.6 | % | ||||||||
| Earnings Per Share | ||||||||||||||||||||
|
Basic |
$ | 0.23 | $ | 0.22 | 4.5 | % | $ | 0.89 | $ | 0.81 | 9.9 | % | ||||||||
| Diluted | $ | 0.22 | $ | 0.21 | 4.8 | % | $ | 0.85 | $ | 0.77 | 10.4 | % | ||||||||
|
(1) |
Per share amounts for all periods have been adjusted to reflect a 6 for 5 stock split in the form of a 20% stock dividend declared May 19, 2015 and paid July 1, 2015. |
| John Marshall Bank | |||||||||||||||||||||||||||
| Loan, Deposit and Borrowing Detail | |||||||||||||||||||||||||||
| (Dollar amounts in thousands) | |||||||||||||||||||||||||||
| December 31, 2015 | September 30, 2015 | December 31, 2014 | Percentage Change | ||||||||||||||||||||||||
| Loans | $ Amount | % of Total | $ Amount | % of Total | $ Amount | % of Total | Last 3 Mos | Last 12 Mos | |||||||||||||||||||
| Mortgage loans on real estate | |||||||||||||||||||||||||||
| Commercial (1) | $ | 441,309 | 56.3 | % | $ | 420,334 | 54.9 | % | $ | 437,891 | 64.0 | % | 5.0 | % | 0.8 | % | |||||||||||
| Construction and land development | 150,787 | 19.3 | % | 169,564 | 22.1 | % | 140,480 | 20.5 | % | -11.1 | % | 7.3 | % | ||||||||||||||
| Residential (1) | 95,496 | 12.2 | % | 93,803 | 12.2 | % | 23,503 | 3.4 | % | 1.8 | % | 306.3 | % | ||||||||||||||
| Total mortgage loans on real estate | $ | 687,592 | 87.8 | % | $ | 683,701 | 89.2 | % | $ | 601,874 | 87.9 | % | 0.6 | % | 14.2 | % | |||||||||||
| Commercial loans | 94,371 | 12.0 | % | 81,684 | 10.7 | % | 81,504 | 11.9 | % | 15.5 | % | 15.8 | % | ||||||||||||||
| Consumer loans | 1,203 | 0.2 | % | 884 | 0.1 | % | 1,232 | 0.2 | % | 36.1 | % | -2.4 | % | ||||||||||||||
| Total loans | $ | 783,166 | 100.0 | % | $ | 766,269 | 100.0 | % | $ | 684,610 | 100.0 | % | 2.2 | % | 14.4 | % | |||||||||||
| Less: Allowance for loan losses | (7,130 | ) | (6,937 | ) | (6,506 | ) | |||||||||||||||||||||
| Net deferred loan fees | (1,403 | ) | (1,356 | ) | (1,327 | ) | |||||||||||||||||||||
| Net loans | $ | 774,633 | $ | 757,976 | $ | 676,777 | |||||||||||||||||||||
| December 31, 2015 | September 30, 2015 | December 31, 2014 | Percentage Change | ||||||||||||||||||||||||
| Deposits | $ Amount | % of Total | $ Amount | % of Total | $ Amount | % of Total | Last 3 Mos | Last 12 Mos | |||||||||||||||||||
| Noninterest-bearing demand deposits | $ | 136,361 | 18.7 | % | $ | 130,844 | 19.0 | % | $ | 121,219 | 19.6 | % | 4.2 | % | 12.5 | % | |||||||||||
| Interest-bearing demand deposits: | |||||||||||||||||||||||||||
| NOW accounts | 23,496 | 3.2 | % | 18,650 | 2.7 | % | 12,774 | 2.1 | % | 26.0 | % | 83.9 | % | ||||||||||||||
| Money market accounts | 211,817 | 29.0 | % | 200,717 | 29.1 | % | 185,664 | 30.1 | % | 5.5 | % | 14.1 | % | ||||||||||||||
| Savings accounts | 17,154 | 2.3 | % | 5,717 | 0.8 | % | 6,500 | 1.0 | % | 200.1 | % | 163.9 | % | ||||||||||||||
|
Certificates of deposit $100,000 or more |
200,236 | 27.4 | % | 205,189 | 29.7 | % | 151,435 | 24.5 | % | -2.4 | % | 32.2 | % | ||||||||||||||
| Less than $100,000 | 31,309 | 4.3 | % | 30,974 | 4.5 | % | 29,733 | 4.8 | % | 1.1 | % | 5.3 | % | ||||||||||||||
| QwickRate® Certificates of deposit | 25,018 | 3.4 | % | 25,880 | 3.7 | % | 15,592 | 2.5 | % | -3.3 | % | 60.5 | % | ||||||||||||||
| CDARS® | 62,943 | 8.6 | % | 52,794 | 7.6 | % | 73,376 | 11.9 | % | 19.2 | % | -14.2 | % | ||||||||||||||
| Brokered deposits | 22,519 | 3.1 | % | 20,161 | 2.9 | % | 21,320 | 3.5 | % | 11.7 | % | 5.6 | % | ||||||||||||||
| Total deposits | $ | 730,853 | 100.0 | % | $ | 690,926 | 100.0 | % | $ | 617,613 | 100.0 | % | 5.8 | % | 18.3 | % | |||||||||||
| Borrowings | |||||||||||||||||||||||||||
| Customer repurchase agreements | $ | 11,972 | 14.4 | % | $ | 11,822 | 14.4 | % | $ | 12,404 | 19.3 | % | 1.3 | % | -3.5 | % | |||||||||||
| Federal Home Loan Bank advances | 71,000 | 85.6 | % | 70,000 | 85.6 | % | 52,000 | 80.7 | % | 1.4 | % | 36.5 | % | ||||||||||||||
| Total borrowings | $ | 82,972 | 100.0 | % | $ | 81,822 | 100.0 | % | $ | 64,404 | 100.0 | % | 1.4 | % | 28.8 | % | |||||||||||
| Total deposits and borrowings | $ | 813,825 | $ | 772,748 | $ | 682,017 | 5.3 | % | 19.3 | % | |||||||||||||||||
| Core customer funding sources (2) | $ | 695,288 | 85.4 | % | $ | 656,707 | 85.0 | % | $ | 593,105 | 87.0 | % | 5.9 | % | 17.2 | % | |||||||||||
| Wholesale funding sources (3) | 118,537 | 14.6 | % | 116,041 | 15.0 | % | 88,912 | 13.0 | % | 2.2 | % | 33.3 | % | ||||||||||||||
| Total funding sources | $ | 813,825 | 100.0 | % | $ | 772,748 | 100.0 | % | $ | 682,017 | 100.0 | % | 5.3 | % | 19.3 | % | |||||||||||
|
(1) |
Loan balances totaling $58.8 million were reclassified from the commercial real estate segment to residential real estate segment of the portfolio as of March 31, 2015. |
|
|
(2) |
Includes CDARS(r), which are all reciprocal deposits maintained by Bank customers, and repurchase agreements, which represent sweep accounts tied to customer operating accounts. |
|
|
(3) |
Consists of QwickRate(r) certificates of deposit, brokered deposits and Federal Home Loan Bank advances. |
|
| John Marshall Bank | ||||||||||||||||||
| Average Balance Sheets, Interest and Rates | ||||||||||||||||||
| (Dollar amounts in thousands) | ||||||||||||||||||
| Year Ended December 31, 2015 | Year Ended December 31, 2014 | |||||||||||||||||
| Interest | Average | Interest | Average | |||||||||||||||
| Average | Income- | Yields | Average | Income- | Yields | |||||||||||||
| Balance | Expense | /Rates | Balance | Expense | /Rates | |||||||||||||
| Assets | ||||||||||||||||||
| Securities | $ | 83,171 | $ | 1,680 | 2.02 | % | $ | 60,974 | $ | 1,389 | 2.28 | % | ||||||
| Loans, net of unearned income | 732,311 | 37,145 | 5.07 | % | 617,229 | 32,873 | 5.33 | % | ||||||||||
| Interest-bearing deposits in other banks | 23,492 | 65 | 0.28 | % | 29,303 | 74 | 0.25 | % | ||||||||||
| Total interest-earning assets | $ | 838,974 | $ | 38,890 | 4.64 | % | $ | 707,506 | $ | 34,336 | 4.85 | % | ||||||
| Other assets | 15,160 | 12,941 | ||||||||||||||||
| Total assets | $ | 854,134 | $ | 720,447 | ||||||||||||||
| Liabilities & Shareholders' equity | ||||||||||||||||||
| Interest-bearing deposits | ||||||||||||||||||
| NOW accounts | $ | 14,989 | $ | 43 | 0.29 | % | $ | 10,428 | $ | 27 | 0.26 | % | ||||||
| Money market accounts | 201,563 | 1,075 | 0.53 | % | 164,430 | 902 | 0.55 | % | ||||||||||
| Savings accounts | 7,163 | 26 | 0.36 | % | 8,504 | 39 | 0.46 | % | ||||||||||
| Time deposits | 318,342 | 3,428 | 1.08 | % | 288,515 | 2,958 | 1.03 | % | ||||||||||
| Total interest-bearing deposits | $ | 542,057 | $ | 4,572 | 0.84 | % | $ | 471,877 | $ | 3,926 | 0.83 | % | ||||||
|
Securities sold under agreement to repurchase and federal funds purchased |
$ | 14,538 | $ | 61 | 0.42 | % | $ | 12,953 | $ | 54 | 0.42 | % | ||||||
| Other borrowed funds | 62,096 | 580 | 0.93 | % | 37,868 | 392 | 1.04 | % | ||||||||||
| Total interest-bearing liabilities | $ | 618,691 | $ | 5,213 | 0.84 | % | $ | 522,698 | $ | 4,372 | 0.84 | % | ||||||
| Demand deposits and other liabilities | 130,441 | 102,044 | ||||||||||||||||
| Total liabilities | $ | 749,132 | $ | 624,742 | ||||||||||||||
| Shareholders' equity | 105,002 | 95,705 | ||||||||||||||||
| Total liabilities and shareholders' equity | $ | 854,134 | $ | 720,447 | ||||||||||||||
| Interest rate spread | 3.80 | % | 4.01 | % | ||||||||||||||
| Net interest income and margin | $ | 33,677 | 4.01 | % | $ | 29,964 | 4.24 | % | ||||||||||
| 3 Months Ended December 31, 2015 | 3 Months Ended December 31, 2014 | |||||||||||||||||
| Interest | Average | Interest | Average | |||||||||||||||
| Average | Income- | Yields | Average | Income- | Yields | |||||||||||||
| Balance | Expense | /Rates | Balance | Expense | /Rates | |||||||||||||
| Assets | ||||||||||||||||||
| Securities | $ | 86,130 | $ | 429 | 1.98 | % | $ | 65,220 | $ | 371 | 2.26 | % | ||||||
| Loans, net of unearned income | 775,132 | 9,684 | 4.96 | % | 663,460 | 8,755 | 5.24 | % | ||||||||||
| Interest-bearing deposits in other banks | 29,288 | 29 | 0.39 | % | 19,390 | 13 | 0.27 | % | ||||||||||
| Total interest-earning assets | $ | 890,550 | $ | 10,142 | 4.52 | % | $ | 748,070 | $ | 9,139 | 4.85 | % | ||||||
| Other assets | 13,826 | 15,614 | ||||||||||||||||
| Total assets | $ | 904,376 | $ | 763,684 | ||||||||||||||
| Liabilities & Shareholders' equity | ||||||||||||||||||
| Interest-bearing deposits | ||||||||||||||||||
| NOW accounts | $ | 16,500 | $ | 12 | 0.29 | % | $ | 11,885 | $ | 8 | 0.27 | % | ||||||
| Money market accounts | 206,162 | 279 | 0.54 | % | 187,470 | 252 | 0.53 | % | ||||||||||
| Savings accounts | 9,043 | 10 | 0.44 | % | 7,023 | 7 | 0.40 | % | ||||||||||
| Time deposits | 338,159 | 953 | 1.12 | % | 290,893 | 757 | 1.03 | % | ||||||||||
| Total interest-bearing deposits | $ | 569,864 | $ | 1,254 | 0.87 | % | $ | 497,271 | $ | 1,024 | 0.82 | % | ||||||
|
Securities sold under agreement to repurchase and federal funds purchased |
$ | 12,391 | $ | 12 | 0.38 | % | $ | 12,155 | $ | 12 | 0.39 | % | ||||||
| Other borrowed funds | 77,511 | 175 | 0.90 | % | 43,979 | 109 | 0.98 | % | ||||||||||
| Total interest-bearing liabilities | $ | 659,766 | $ | 1,441 | 0.87 | % | $ | 553,405 | $ | 1,145 | 0.82 | % | ||||||
| Demand deposits and other liabilities | 135,884 | 111,292 | ||||||||||||||||
| Total liabilities | $ | 795,650 | $ | 664,697 | ||||||||||||||
| Shareholders' equity | 108,726 | 98,987 | ||||||||||||||||
| Total liabilities and shareholders' equity | $ | 904,376 | $ | 763,684 | ||||||||||||||
| Interest rate spread | 3.65 | % | 4.03 | % | ||||||||||||||
| Net interest income and margin | $ | 8,701 | 3.88 | % | $ | 7,994 | 4.24 | % | ||||||||||
| John Marshall Bank | ||||||||||||
| Financial Highlights (Unaudited) | ||||||||||||
| (Dollar amounts in thousands, except per share data) | ||||||||||||
| At or For the Three Months Ended | At or For the Year Ended | |||||||||||
| December 31, | December 31, | |||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||
| Per share Data and Shares Outstanding (1) | ||||||||||||
| Earnings per share - basic | $ | 0.23 | $ | 0.22 | $ | 0.89 | $ | 0.81 | ||||
| Earnings per share - diluted | $ | 0.22 | $ | 0.21 | $ | 0.85 | $ | 0.77 | ||||
| Tangible book value per share | $ | 10.91 | $ | 10.00 | $ | 10.91 | $ | 10.00 | ||||
| Weighted average common shares (basic) | 10,013,072 | 9,966,098 | 9,993,231 | 9,957,130 | ||||||||
| Weighted average common shares (diluted) | 10,517,743 | 10,443,236 | 10,483,431 | 10,436,429 | ||||||||
| Common shares outstanding at end of period | 10,016,574 | 9,966,103 | 10,016,574 | 9,966,103 | ||||||||
| Performance Ratios | ||||||||||||
| Return on average assets (annualized) | 1.02% | 1.14% | 1.04% | 1.11% | ||||||||
| Return on average equity (annualized) | 8.44% | 8.78% | 8.44% | 8.38% | ||||||||
| Yield on earning assets (annualized) | 4.52% | 4.85% | 4.64% | 4.85% | ||||||||
| Cost of interest bearing liabilities (annualized) | 0.87% | 0.82% | 0.84% | 0.84% | ||||||||
| Net interest spread | 3.65% | 4.03% | 3.80% | 4.01% | ||||||||
| Net interest margin | 3.88% | 4.24% | 4.01% | 4.24% | ||||||||
| Noninterest income as a percentage of average assets (annualized) | 0.07% | 0.06% | 0.07% | 0.06% | ||||||||
| Noninterest expense to average assets (annualized) | 2.25% | 2.32% | 2.26% | 2.36% | ||||||||
| Efficiency ratio | 58.0% | 55.0% | 56.3% | 55.9% | ||||||||
| Asset Quality | ||||||||||||
| Loans 30-89 days past due and accruing interest | $ | - | $ | - | $ | - | $ | - | ||||
| Non-accrual loans | $ | 2,957 | $ | 1,762 | $ | 2,957 | $ | 1,762 | ||||
| Other real estate owned | $ | - | $ | - | $ | - | $ | - | ||||
| Non-performing assets (2) | $ | 2,957 | $ | 1,762 | $ | 2,957 | $ | 1,762 | ||||
| Non-performing assets to total assets | 0.32% | 0.22% | 0.32% | 0.22% | ||||||||
| Allowance for loan losses to total loans | 0.91% | 0.95% | 0.91% | 0.95% | ||||||||
| Allowance for loan losses to non-performing loans | 2.4 | 3.7 | 2.4 | 3.7 | ||||||||
| Net loan chargeoffs (recoveries) | $ | (48) | $ | 0 | $ | 573 | $ | 260 | ||||
| Net charge-offs (recoveries) to average loans (annualized) | (0.02)% | 0.00% | 0.08% | 0.04% | ||||||||
| Troubled debt restructurings (total) | $ | 1,474 | $ | 1,804 | $ | 1,474 | $ | 1,804 | ||||
| Performing in accordance with modified terms | $ | 1,474 | $ | 1,804 | $ | 1,474 | $ | 1,804 | ||||
| Not performing in accordance with modified terms | $ | - | $ | - | $ | - | $ | - | ||||
| Regulatory Capital Ratios | ||||||||||||
| Total risk-based capital ratio | 13.6% | 14.0% | 13.6% | 14.0% | ||||||||
| Tier 1 risk-based capital ratio | 12.7% | 13.2% | 12.7% | 13.2% | ||||||||
| Leverage ratio | 12.1% | 13.1% | 12.1% | 13.1% | ||||||||
| Common equity tier 1 ratio | 12.7% | N/A | 12.7% | N/A | ||||||||
| Other Information | ||||||||||||
| Effective income tax rate | 35.3% | 34.6% | 35.6% | 35.3% | ||||||||
| Tangible equity / tangible assets | 11.8% | 12.7% | 11.8% | 12.7% | ||||||||
| Average tangible equity / average tangible assets | 12.0% | 13.0% | 12.3% | 13.3% | ||||||||
| Number of full time equivalent employees | 106 | 97 | 106 | 97 | ||||||||
| # Full service branch offices | 5 | 6 | 5 | 6 | ||||||||
| # Loan production or limited service branch offices | 1 | - | 1 | - | ||||||||
| (1) | Shares and per share amounts for all periods have been adjusted to reflect a 6 for 5 stock split in the form of a 25% stock dividend paid July 1, 2015. | |
| (2) | Non-performing assets consist of non-accrual loans, loans 90 day or more past due and still accruing interest, and foreclosed properties. Does not include troubled debt restructurings ("TDRs") which were accruing interest at the date indicated. | |