John Marshall Bank (OTCQB: JMSB) (the “Bank”) reported net income of $560 thousand for the three months ended March 31, 2016, a decrease of $1.5 million or 73.4%, as compared to net income of $2.1 million for the three months ended March 31, 2015. Net income per diluted share was $0.05 per share during the first three months of 2016, compared to $0.20 per diluted share during the same period in 2015. As of March 31, 2016, the Bank’s tangible book value per share was $10.99, up 7.5% compared to $10.22 as of March 31, 2015, as adjusted for the 6 for 5 stock split in the form of a 20% dividend paid July 1, 2015. The decrease in year-over-year earnings was attributable to an increased loan loss provision of $2.7 million for 2016 compared to $211 thousand in 2015.
As previously disclosed, the Bank incurred an impairment related to a $4.2 million lending relationship due to the unexpected termination of the borrower’s business in March. The lending relationship with the company is made up of three loans. Two of the loans, totaling $1.6 million, are well secured by real estate which is in the process of liquidation. No impairment is expected with respect to these two real estate secured loans. The remaining commercial loan, with a balance of $2.6 million, is secured by receivables, inventory, equipment and intangible assets. During the first quarter 2016, the Bank incurred a $1.9 million charge-off and recorded an additional specific reserve of $525 thousand related to this loan. The remaining outstanding recorded investment for this loan was $700 thousand at March 31, 2016.
“We are disappointed by the impact this had on our first quarter earnings, but are confident that this is an isolated incident that is not reflective of the Bank's overall strong credit quality, internal controls and sound loan underwriting practices,” said John Maxwell, Chairman and CEO of the Bank.
Return on average assets was 0.24% and return on average equity was 2.03% for the first quarter of 2016, compared to 1.08% and 8.43%, respectively, for the first quarter 2015.
The Bank’s capital ratios remain well above regulatory minimums for well capitalized banks. As of March 31, 2016, the Bank’s total risk-based capital ratio was 13.2%, compared to 13.9% at March 31, 2015.
Balance Sheet Review
At March 31, 2016, total assets were $941.2 million, an increase of $110.2 million, or 13.3% from total assets of $831.1 million at March 31, 2015. Gross loans increased $83.5 million, or 11.8%, to $794.0 million at March 31, 2016, compared to $710.5 million at March 31, 2015. Year-over-year net loan growth, from March 31, 2015 to March 31, 2016, was $82.3 million, or 11.7%. The Bank’s investment portfolio increased to $92.1 million at March 31, 2016, compared to $81.9 million at March 31, 2015. As of March 31, 2016, the Bank held $47.9 million of its investment portfolio as held-to-maturity, and $37.8 million as available-for-sale.
The Bank purchased $18.0 million of bank owned life insurance during the first quarter of 2016. Bank owned life insurance represents insurance policies on officers and directors of the Bank. The cash values of the policies are estimates using information provided by insurance carriers. These policies are carried at their cash surrender value, which approximates their fair value.
Total deposits were $738.1 million at March 31, 2016, representing an increase of $87.4 million, or 13.4%, compared to $650.7 million at March 31, 2015. Total borrowings, consisting of Federal Home Loan Bank advances and customer repurchase agreements, were $87.6 million at March 31, 2016, an increase of $15.5 million, or 21.6%, compared to $72.1 million at March 31, 2015.
QwickRate certificates of deposit decreased by $1.5 million year-over-year from $24.0 million at March 31, 2015 to $22.5 million at March 31, 2016. CDARs increased $5.7 million year-over-year. Brokered certificates of deposit increased by $1.3 million from March 31, 2015 to March 31, 2016 and customer repurchase agreements decreased by $1.4 million. Year-over-year Federal Home Loan Bank advances increased $17.0 million or 30.9%. Core customer funding sources increased by $86.2 million, or 13.8%, compared to March 31, 2015.
Total shareholders’ equity was $110.2 million at March 31, 2016, an increase of $8.2 million, or 8.0%, compared to $102.0 million at March 31, 2015. Substantially all of the increase in shareholders’ equity over the past year is attributed to net income retained during the past twelve months. Total common shares outstanding increased from 9,979,753 at March 31, 2015 to 10,030,599 at March 31, 2016, 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 $8.6 million for the three months ended March 31, 2016, up 8.1% from $8.0 million for the three months ended March 31, 2015. The net interest margin was 3.80% during the first quarter of 2016, compared to 4.18% during the first quarter of 2015. The decline in the net interest margin from year-over-year is primarily attributed to a decline in the Bank’s yield on earning assets to 4.46% during the first quarter of 2016 from 4.78% during the first quarter of 2015, which is substantially the result of a 24 basis point year-over-year decline in loan yields and a 10 basis point year-over-year decline in securities yields. Loan yields quarter-over-quarter declined 2 basis points from 4.96% to 4.94% and securities yields increased 2 basis points from 1.98% to 2.00%, from December 31, 2015 to March 31, 2016.
Notwithstanding the decline in the net interest margin over the past year, net interest income increased by 8.1% during the first quarter of 2016, compared to the first quarter of 2015, resulting primarily from a $140.5 million, or 18.1%, increase in average earning assets during the first quarter of 2016, compared to the first quarter of 2015.
Provision for loan losses
The Bank recognized a provision for loan losses of $2.7 million during the first three months of 2016, compared to a provision of $211 thousand during the first quarter of 2015. The Bank reported $1.9 million in net loan charge-offs during the first quarter of 2016 and no net charge-offs during the first quarter of 2015.
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 are not reported as noninterest income. For the three months ended March 31, 2016, the Bank reported total noninterest income of $195 thousand, compared to $140 thousand during the first quarter of 2015. The year-over-year increase of $55 thousand, or 39.3%, was attributable to $54 thousand in income related to bank owned life insurance that was purchased in the first quarter of 2016.
Noninterest expense
The largest component of the Bank’s noninterest expense is employee salaries and benefits. Salary and benefits expense increased by 5.7%, to $3.0 million, during the first quarter of 2016 compared to $2.9 million during the first quarter of 2015. All other operating expenses increased by 24.3%, or $433 thousand, to $2.2 million, during the first quarter of 2016, compared to $1.8 million during the first quarter of 2015.
The increase in other operating expense was associated to higher FDIC insurance related to growth, loan collection fees related to the non-performing loans mentioned above and one-time costs incurred related to the Bank’s core system conversion which took place in early April 2016.
Asset Quality Review
As of March 31, 2016, non-performing assets were 0.55% of total assets, up from 0.21% at March 31, 2015. The Bank’s allowance for loan losses covered non-performing loans by 1.5 times as of March 31, 2016, compared to 3.8 times as of March 31, 2015. The increase in non-performing assets is primarily related to the reclassification of two real estate loans totaling $1.6 million and a $700 thousand commercial loan to non-accrual status during the first quarter of 2016. These are the same three loans previously discussed.
As of March 31, 2016, there were $119 thousand in loans 30-89 days past due and still accruing interest. As of March 31, 2015 there were no loans 30-89 days past due and still accruing interest.
Troubled debt restructurings were $1.5 million at March 31, 2016, a decrease of $330 thousand, or 18.3%, from $1.8 million at March 31, 2015. All troubled debt restructurings were performing in accordance with modified terms as of March 31, 2016. There was no other real estate owned as of March 31, 2016.
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) | ||||||||||||||||||
% Change | ||||||||||||||||||
March 31, | December 31, | March 31, | Last Three | Year Over | ||||||||||||||
2016 | 2015 | 2015 | Months | Year | ||||||||||||||
Assets | (Unaudited) | (Unaudited) | ||||||||||||||||
Cash and due from banks | $ | 5,306 | $ | 8,217 | $ | 10,047 | -35.4 | % | -47.2 | % | ||||||||
Interest-bearing deposits in banks | 27,154 | 46,738 | 24,172 | -41.9 | % | 12.3 | % | |||||||||||
Securities available-for-sale, at fair value | 37,774 | 32,145 | 28,752 | 17.5 | % | 31.4 | % | |||||||||||
Securities held-to-maturity, fair value of $48,660 | ||||||||||||||||||
at 3/31/2016, $46,780 at 12/31/2015 and | ||||||||||||||||||
$48,648 at 3/31/2015 | 47,943 | 46,479 | 47,646 | 3.1 | % | 0.6 | % | |||||||||||
Restricted securities, at cost | 6,380 | 6,210 | 5,521 | 2.7 | % | 15.6 | % | |||||||||||
Loans, net of allowance for loan losses of $7,929 at | ||||||||||||||||||
3/31/2016; $7,130 at 12/31/2015 and $6,717 at 3/31/2015 | 784,681 | 774,633 | 702,385 | 1.3 | % | 11.7 | % | |||||||||||
Bank premises and equipment, net | 2,736 | 2,690 | 2,963 | 1.7 | % | -7.7 | % | |||||||||||
Accrued interest receivable | 2,388 | 2,318 | 2,181 | 3.0 | % | 9.5 | % | |||||||||||
Bank owned life insurance | 18,054 | - - | - - | n/a | n/a | |||||||||||||
Other assets | 8,829 | 9,190 | 7,413 | -3.9 | % | 19.1 | % | |||||||||||
Total assets | $ | 941,245 | $ | 928,620 | $ | 831,080 | 1.4 | % | 13.3 | % | ||||||||
Liabilities and Shareholders' Equity | ||||||||||||||||||
Liabilities | ||||||||||||||||||
Deposits: | ||||||||||||||||||
Non-interest bearing demand deposits | $ | 129,760 | $ | 136,361 | $ | 122,797 | -4.8 | % | 5.7 | % | ||||||||
Interest bearing demand deposits | 236,083 | 235,313 | 222,324 | 0.3 | % | 6.2 | % | |||||||||||
Savings deposits | 12,077 | 17,154 | 6,562 | -29.6 | % | 84.0 | % | |||||||||||
Time deposits | 360,146 | 342,025 | 298,988 | 5.3 | % | 20.5 | % | |||||||||||
Total deposits | 738,066 | 730,853 | 650,671 | 1.0 | % | 13.4 | % | |||||||||||
Repurchase agreements | 15,638 | 11,972 | 17,085 | 30.6 | % | -8.5 | % | |||||||||||
Federal Home Loan Bank advances | 72,000 | 71,000 | 55,000 | 1.4 | % | 30.9 | % | |||||||||||
Accrued interest payable | 132 | 109 | 123 | 21.1 | % | 7.3 | % | |||||||||||
Other liabilities | 5,222 | 5,384 | 6,206 | -3.0 | % | -15.9 | % | |||||||||||
Total liabilities | 831,058 | 819,318 | 729,085 | 1.4 | % | 14.0 | % | |||||||||||
Shareholders' Equity | ||||||||||||||||||
Preferred stock, par value $5 per share; authorized 1,000,000 shares; | ||||||||||||||||||
none issued | - - | - - | - - | - - | - - | |||||||||||||
Common stock, nonvoting, par value $5 per share; authorized | ||||||||||||||||||
1,000,000 shares; none issued | - - | - - | - - | - - | - - | |||||||||||||
Common stock, voting, par value $5 per share; authorized | ||||||||||||||||||
20,000,000 shares; issued and outstanding, 10,030,599 shares | ||||||||||||||||||
at 3/31/2016, 10,016,574 at 12/31/2015, | ||||||||||||||||||
and 8,316,461 at 3/31/2015 | 50,153 | 50,083 | 41,582 | 0.1 | % | 20.6 | % | |||||||||||
Additional paid-in capital | 31,443 | 31,313 | 39,126 | 0.4 | % | -19.6 | % | |||||||||||
Retained earnings | 28,713 | 28,153 | 21,394 | 2.0 | % | 34.2 | % | |||||||||||
Accumulated other comprehensive loss | (122 | ) | (247 | ) | (107 | ) | 50.6 | % | -14.0 | % | ||||||||
Total shareholders' equity | 110,187 | 109,302 | 101,995 | 0.8 | % | 8.0 | % | |||||||||||
Total liabilities and shareholders' equity | $ | 941,245 | $ | 928,620 | $ | 831,080 | 1.4 | % | 13.3 | % | ||||||||
John Marshall Bank | ||||||||||||||
Statements of Income | ||||||||||||||
For the Three Months Ended March 31, 2016 and 2015 | ||||||||||||||
(Dollar amounts in thousands, except per share data) | ||||||||||||||
Three Months Ended | ||||||||||||||
March 31, | ||||||||||||||
2016 | 2015 | % Change | ||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||
Interest and Dividend Income | ||||||||||||||
Interest and fees on loans | $ | 9,659 | $ | 8,755 | 10.3 | % | ||||||||
Interest on investment securities, taxable | 322 | 295 | 9.2 | % | ||||||||||
Interest on investment securities, tax-exempt | 33 | 26 | 26.9 | % | ||||||||||
Dividends | 79 | 55 | 43.6 | % | ||||||||||
Interest on deposits in banks | 53 | 9 | 488.9 | % | ||||||||||
Total interest and dividend income | 10,146 | 9,140 | 11.0 | % | ||||||||||
Interest Expense | ||||||||||||||
Deposits | 1,318 | 1,015 | 29.9 | % | ||||||||||
Federal Home Loan Bank advances | 168 | 117 | 43.6 | % | ||||||||||
Other short-term borrowings | 15 | 14 | 7.1 | % | ||||||||||
Total interest expense | 1,501 | 1,146 | 31.0 | % | ||||||||||
Net interest income | 8,645 | 7,994 | 8.1 | % | ||||||||||
Provision for loan losses | 2,735 | 211 | 1196.2 | % | ||||||||||
Net interest income after provision for loan losses | 5,910 | 7,783 | -24.1 | % | ||||||||||
Noninterest Income | ||||||||||||||
Service charges on deposit accounts | 122 | 118 | 3.4 | % | ||||||||||
Bank owned life insurance | 54 | - - | n/a | |||||||||||
Other service charges and fees | 19 | 22 | -13.6 | % | ||||||||||
Total noninterest income | 195 | 140 | 39.3 | % | ||||||||||
Noninterest Expenses | ||||||||||||||
Salaries and employee benefits | 3,044 | 2,880 | 5.7 | % | ||||||||||
Occupancy expense of premises | 419 | 440 | -4.8 | % | ||||||||||
Furniture and equipment expenses | 332 | 258 | 28.7 | % | ||||||||||
Other operating expenses | 1,464 | 1,084 | 35.1 | % | ||||||||||
Total noninterest expenses | 5,259 | 4,662 | 12.8 | % | ||||||||||
Income before income taxes | 846 | 3,261 | -74.1 | % | ||||||||||
Income tax expense | 286 | 1,154 | -75.2 | % | ||||||||||
Net income | $ | 560 | $ | 2,107 | -73.4 | % | ||||||||
Earnings Per Share | ||||||||||||||
Basic | $ | 0.06 | $ | 0.21 | -71.4 | % | ||||||||
Diluted | $ | 0.05 | $ | 0.20 | -75.0 | % | ||||||||
John Marshall Bank | |||||||||||||||||||||||||||
Loan, Deposit and Borrowing Detail (Unaudited) | |||||||||||||||||||||||||||
(Dollar amounts in thousands) | |||||||||||||||||||||||||||
March 31, 2016 | December 31, 2015 | March 31, 2015 | Percentage Change | ||||||||||||||||||||||||
Loans | $ Amount | % of Total | $ Amount | % of Total | $ Amount | % of Total | Last 3 Mos | Last 12 Mos | |||||||||||||||||||
Mortgage loans on real estate | |||||||||||||||||||||||||||
Commercial | $ | 457,784 | 57.6 | % | $ | 441,309 | 56.3 | % | $ | 402,734 | 56.7 | % | 3.7 | % | 13.7 | % | |||||||||||
Construction and land development | 157,102 | 19.8 | % | 150,786 | 19.3 | % | 138,745 | 19.5 | % | 4.2 | % | 13.2 | % | ||||||||||||||
Residential | 95,136 | 12.0 | % | 95,496 | 12.2 | % | 84,333 | 11.9 | % | -0.4 | % | 12.8 | % | ||||||||||||||
Total mortgage loans on real estate | $ | 710,022 | 89.4 | % | $ | 687,592 | 87.8 | % | $ | 625,812 | 88.1 | % | 3.3 | % | 13.5 | % | |||||||||||
Commercial loans | 82,709 | 10.4 | % | 94,371 | 12.0 | % | 83,631 | 11.8 | % | -12.4 | % | -1.1 | % | ||||||||||||||
Consumer loans | 1,259 | 0.2 | % | 1,203 | 0.2 | % | 1,034 | 0.1 | % | 4.7 | % | 21.8 | % | ||||||||||||||
Total loans | $ | 793,990 | 100.0 | % | $ | 783,166 | 100.0 | % | $ | 710,477 | 100.0 | % | 1.4 | % | 11.8 | % | |||||||||||
Less: Allowance for loan losses | (7,929 | ) | (7,130 | ) | (6,717 | ) | |||||||||||||||||||||
Net deferred loan fees | (1,380 | ) | (1,402 | ) | (1,375 | ) | |||||||||||||||||||||
Net loans | $ | 784,681 | $ | 774,633 | $ | 702,385 | |||||||||||||||||||||
March 31, 2016 | December 31, 2015 | March 31, 2015 | Percentage Change | ||||||||||||||||||||||||
Deposits | $ Amount | % of Total | $ Amount | % of Total | $ Amount | % of Total | Last 3 Mos | Last 12 Mos | |||||||||||||||||||
Noninterest-bearing demand deposits | $ | 129,760 | 17.6 | % | $ | 136,361 | 18.7 | % | $ | 122,797 | 18.9 | % | -4.8 | % | 5.7 | % | |||||||||||
Interest-bearing demand deposits: | |||||||||||||||||||||||||||
NOW accounts | 20,436 | 2.8 | % | 23,496 | 3.2 | % | 17,350 | 2.7 | % | -13.0 | % | 17.8 | % | ||||||||||||||
Money market accounts | 215,647 | 29.2 | % | 211,817 | 29.0 | % | 204,974 | 31.5 | % | 1.8 | % | 5.2 | % | ||||||||||||||
Savings accounts | 12,077 | 1.6 | % | 17,154 | 2.3 | % | 6,562 | 1.0 | % | -29.6 | % | 84.1 | % | ||||||||||||||
Certificates of deposit | |||||||||||||||||||||||||||
$250,000 or more | 156,109 | 30.1 | % | 137,381 | 27.4 | % | 117,732 | 25.7 | % | 10.8 | % | 32.8 | % | ||||||||||||||
Less than $250,000 | 97,175 | 4.2 | % | 94,164 | 4.3 | % | 79,918 | 4.7 | % | 0.1 | % | 2.8 | % | ||||||||||||||
QwickRate® Certificates of deposit | 22,579 | 3.1 | % | 25,018 | 3.4 | % | 24,043 | 3.7 | % | -9.7 | % | -6.1 | % | ||||||||||||||
CDARS® | 62,766 | 8.5 | % | 62,943 | 8.6 | % | 57,036 | 8.8 | % | -0.3 | % | 10.0 | % | ||||||||||||||
Brokered deposits | 21,517 | 2.9 | % | 22,519 | 3.1 | % | 20,259 | 3.1 | % | -4.4 | % | 6.2 | % | ||||||||||||||
Total deposits | $ | 738,066 | 100.0 | % | $ | 730,853 | 100.0 | % | $ | 650,671 | 100.0 | % | 1.0 | % | 13.4 | % | |||||||||||
Borrowings | |||||||||||||||||||||||||||
Customer repurchase agreements | $ | 15,638 | 17.8 | % | $ | 11,972 | 14.4 | % | $ | 17,085 | 23.7 | % | 30.6 | % | -8.5 | % | |||||||||||
Federal Home Loan Bank advances | 72,000 | 82.2 | % | 71,000 | 85.6 | % | 55,000 | 76.3 | % | 1.4 | % | 30.9 | % | ||||||||||||||
Total borrowings | $ | 87,638 | 100.0 | % | $ | 82,972 | 100.0 | % | $ | 72,085 | 100.0 | % | 5.6 | % | 21.6 | % | |||||||||||
Total deposits and borrowings | $ | 825,704 | $ | 813,825 | $ | 722,756 | 1.5 | % | 14.2 | % | |||||||||||||||||
Core customer funding sources (1) | $ | 709,608 | 85.9 | % | $ | 695,288 | 85.4 | % | $ | 623,454 | 86.3 | % | 2.1 | % | 13.8 | % | |||||||||||
Wholesale funding sources (2) | 116,096 | 14.1 | % | 118,537 | 14.6 | % | 99,302 | 13.7 | % | -2.1 | % | 16.9 | % | ||||||||||||||
Total funding sources | $ | 825,704 | 100.0 | % | $ | 813,825 | 100.0 | % | $ | 722,756 | 100.0 | % | 1.5 | % | 14.2 | % | |||||||||||
(1) | Includes CDARS(r), which are all reciprocal deposits maintained by Bank customers, and repurchase agreements, which represent sweep accounts tied to customer operating accounts. | |
(2) | Consists of QwickRate(r) certificates of deposit, brokered deposits and Federal Home Loan Bank advances |
John Marshall Bank | ||||||||||||||||||||||||
Average Balance Sheets, Interest and Rates (Unaudited) | ||||||||||||||||||||||||
(Dollar amounts in thousands) | ||||||||||||||||||||||||
3 Months Ended March 31, 2016 | 3 Months Ended December 31, 2015 | 3 Months Ended March 31, 2015 | ||||||||||||||||||||||
Interest | Average | Interest | Average | Interest | Average | |||||||||||||||||||
Average | Income- | Yields | Average | Income- | Yields | Average | Income- | Yields | ||||||||||||||||
Balance | Expense | /Rates | Balance | Expense | /Rates | Balance | Expense | /Rates | ||||||||||||||||
Assets | ||||||||||||||||||||||||
Securities | $ | 87,230 | $ | 434 | 2.00% | $ | 86,130 | $ | 429 | 1.98% | $ | 72,751 | $ | 376 | 2.10% | |||||||||
Loans, net of unearned income | 786,727 | 9,659 | 4.94% | 775,132 | 9,684 | 4.96% | 685,876 | 8,755 | 5.18% | |||||||||||||||
Interest-bearing deposits in other banks | 41,340 | 53 | 0.52% | 29,288 | 29 | 0.39% | 16,122 | 9 | 0.23% | |||||||||||||||
Total interest-earning assets | $ | 915,297 | $ | 10,146 | 4.46% | $ | 890,550 | $ | 10,142 | 4.52% | $ | 774,749 | $ | 9,140 | 4.78% | |||||||||
Other assets | 19,217 | 13,826 | 16,589 | |||||||||||||||||||||
Total assets | $ | 934,514 | $ | 904,376 | $ | 791,338 | ||||||||||||||||||
Liabilities & Shareholders' equity | ||||||||||||||||||||||||
Interest-bearing deposits | ||||||||||||||||||||||||
NOW accounts | $ | 21,301 | $ | 16 | 0.30% | $ | 16,500 | $ | 12 | 0.29% | $ | 13,866 | $ | 9 | 0.27% | |||||||||
Money market accounts | 211,399 | 282 | 0.54% | 206,162 | 279 | 0.54% | 192,392 | 251 | 0.53% | |||||||||||||||
Savings accounts | 14,915 | 20 | 0.54% | 9,043 | 10 | 0.44% | 7,328 | 6 | 0.34% | |||||||||||||||
Time deposits | 357,151 | 1,000 | 1.13% | 338,159 | 953 | 1.12% | 292,329 | 749 | 1.04% | |||||||||||||||
Total interest-bearing deposits | $ | 604,766 | $ | 1,318 | 0.88% | $ | 569,864 | $ | 1,254 | 0.87% | $ | 505,915 | $ | 1,015 | 0.81% | |||||||||
Securities sold under agreement to | ||||||||||||||||||||||||
repurchase and federal funds purchased | $ | 13,955 | $ | 15 | 0.43% | $ | 12,391 | $ | 12 | 0.38% | $ | 13,280 | $ | 14 | 0.43% | |||||||||
Other borrowed funds | 67,603 | 168 | 1.00% | 77,511 | 175 | 0.90% | 48,711 | 117 | 0.97% | |||||||||||||||
Total interest-bearing liabilities | $ | 686,324 | $ | 1,501 | 0.88% | $ | 659,766 | $ | 1,441 | 0.87% | $ | 567,906 | $ | 1,146 | 0.82% | |||||||||
Demand deposits and other liabilities | 137,066 | 135,884 | 122,079 | |||||||||||||||||||||
Total liabilities | $ | 823,390 | $ | 795,650 | $ | 689,985 | ||||||||||||||||||
Shareholders' equity | 111,124 | 108,726 | 101,353 | |||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 934,514 | $ | 904,376 | $ | 791,338 | ||||||||||||||||||
Interest rate spread | 3.58% | 3.65% | 3.96% | |||||||||||||||||||||
Net interest income and margin | $ | 8,645 | 3.80% | $ | 8,701 | 3.88% | $ | 7,994 | 4.18% | |||||||||||||||
John Marshall Bank | ||||||||
Financial Highlights (Unaudited) | ||||||||
(Dollar amounts in thousands, except per share data) | ||||||||
At or For the Quarter Ended | ||||||||
March 31 | ||||||||
2016 | 2015 | |||||||
Per share Data and Shares Outstanding (1) | ||||||||
Earnings per share - basic | $ | 0.06 | $ | 0.21 | ||||
Earnings per share - diluted | $ | 0.05 | $ | 0.20 | ||||
Tangible book value per share | $ | 10.99 | $ | 10.22 | ||||
Weighted average common shares (basic) | 10,026,765 | 9,975,250 | ||||||
Weighted average common shares (diluted) | 10,544,156 | 10,445,831 | ||||||
Common shares outstanding at end of period | 10,030,599 | 9,979,753 | ||||||
Performance Ratios | ||||||||
Return on average assets (annualized) | 0.24 | % | 1.08 | % | ||||
Return on average equity (annualized) | 2.03 | % | 8.43 | % | ||||
Yield on earning assets (annualized) | 4.46 | % | 4.78 | % | ||||
Cost of interest bearing liabilities (annualized) | 0.88 | % | 0.82 | % | ||||
Net interest spread | 3.58 | % | 3.97 | % | ||||
Net interest margin | 3.80 | % | 4.18 | % | ||||
Noninterest income as a percentage of average assets (annualized) | 0.08 | % | 0.07 | % | ||||
Noninterest expense to average assets (annualized) | 2.26 | % | 2.39 | % | ||||
Efficiency ratio | 59.5 | % | 57.3 | % | ||||
Asset Quality | ||||||||
Loans 30-89 days past due and accruing interest | $ | 119 | $ | - | ||||
Non-performing assets (2) | $ | 5,154 | $ | 1,756 | ||||
Non-performing assets to total assets | 0.55 | % | 0.21 | % | ||||
Allowance for loan losses to total loans | 1.00 | % | 0.95 | % | ||||
Allowance for loan losses to non-performing loans | 1.5 | 3.8 | ||||||
Net loan chargeoffs | $ | 1,935 | $ | - | ||||
Net charge-offs to average loans (annualized) | 0.99 | % | 0.00 | % | ||||
Troubled debt restructurings (total) | $ | 1,471 | $ | 1,801 | ||||
Performing in accordance with modified terms | $ | 1,471 | $ | 1,801 | ||||
Not performing in accordance with modified terms | $ | - | $ | - | ||||
Other real estate owned | $ | - | $ | - | ||||
Regulatory Capital Ratios | ||||||||
Total risk-based capital ratio | 13.2 | % | 13.9 | % | ||||
Tier 1 risk-based capital ratio | 12.3 | % | 13.0 | % | ||||
Leverage ratio | 11.8 | % | 12.8 | % | ||||
Common equity tier 1 ratio | 12.3 | % | 13.0 | % | ||||
Other Information | ||||||||
Effective income tax rate | 33.8 | % | 35.4 | % | ||||
Tangible equity / tangible assets | 11.7 | % | 12.3 | % | ||||
Average tangible equity / average tangible assets | 11.9 | % | 12.8 | % | ||||
Number of full time equivalent employees | 108 | 98 | ||||||
# Full service branch offices | 5 | 5 | ||||||
# Loan production offices and limited service branches | 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 20% 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. |
View source version on businesswire.com: http://www.businesswire.com/news/home/20160429005932/en/
Contacts:
John R. Maxwell, 703-584-0840