John Marshall Bank Reports Nine Month Financial Results

  John Marshall Bank Reports Nine Month Financial Results

Business Wire

RESTON, Va. -- October 22, 2013

John Marshall Bank reported net income of $5.2 million for the nine months
ended September 30, 2013, an increase of $1.7 million, or 47.3%, as compared
to net income of $3.5 million reported for the nine months ended September 30,
2012.Net income per diluted share for the nine month period in 2013 increased
45.0%, to $0.87 per share, from $0.60 per share in the same period in 2012.

Key financial results for the period include the following:

  *Total assets at September 30, 2013 increased by 22.8% to $627.4 million as
    compared to $510.8 million as of September 30, 2012.
  *Gross loans at September 30, 2013 increased by 22.9% to $547.9 million as
    compared to $445.9 million as of September 30, 2012.
  *Total deposits at September 30, 2013 increased by 23.0% to $515.4 million
    as compared to $418.9 million as of September 30, 2012.
  *The Bank’s net interest margin declined but remains strong at 4.50% for
    the first nine months of 2013 as compared to 4.61% during the first nine
    months of 2012, and 4.57% for the three months ended June 30, 2013.
  *Net interest income, the Bank’s main source of income, increased 20.7% to
    $19.5 million during the first nine months of 2013, compared to $16.2
    million during the first nine months of 2012.
  *Non-interest income increased by 51.4% to $275 thousand during the first
    nine months of 2013 as compared to $182 thousand during the first nine
    months of 2012.
  *Non-interest expense increased by 20.2%, or $1.9 million, during the first
    nine months of 2013 as compared to 2012, reflecting increased operating
    expenses required to support the Bank’s growth.
  *Asset quality remains very strong. As of September 30, 2013,
    non-performing assets were 0.10% of total assets, up slightly from 0.08%
    as of June 30, 2013, and down from 0.31% of total assets at September 30,
    2012. There were no loans past due 30 or more days that were not already
    on non-accrual status as of September 30, 2013. The allowance for loan
    losses covered non-accrual loans by 8.9 times as of September 30, 2013.
    The Bank reported no other real estate owned as of September 30, 2013.
  *Capital ratios remain above regulatory minimums for well capitalized
    banks. As of September 30, 2013, the Bank’s total risk-based capital ratio
    was 10.6%, compared 10.8% as of June 30, 2013.

John Marshall Bank is headquartered in Reston, Virginia and has five
full-service branches located in Reston, Falls Church, Leesburg, Arlington,
and Rockville. The Bank also has two limited-service commercial branches
located in Alexandria, and Washington, DC. Further information on the Bank can
be obtained by visiting its website at www.johnmarshallbank.com.

                                                                                  
John Marshall Bank
Financial Highlights (Unaudited)
(Dollars in 000's except per share data)
                                                                                               
                   Nine Months Ended                                           Three Months Ended
                   September       September       $ Change        %           September       June 30,
                   30, 2013        30, 2012                        Change      30, 2013        2013
Operating
Results
Net interest       $ 19,496        $ 16,152        $ 3,344         20.7  %     $ 6,677         $ 6,497
income
Less provision
for loan            (549    )      (1,510  )      961          -63.6 %      (172    )      (127    )
losses
Net Interest
income after         18,947          14,642          4,305         29.4  %       6,505           6,370
provision for
loan losses
Non-interest         275             182             93            51.4  %       95              86
income
Non-interest        11,258        9,366         1,892        20.2  %      3,755         3,769   
expense
Income before        7,964           5,458           2,506         45.9  %       2,845           2,687
income taxes
Income tax          2,777         1,936         841          43.4  %      1,010         960     
expense
Net income         $ 5,187        $ 3,522         1,665        47.3  %     $ 1,835        $ 1,727   
                                                                                               
Per share Data
(1)
Earnings per       $ 0.88          $ 0.60          $ 0.28          46.7  %     $ 0.31          $ 0.29
share - basic
Earnings per
share -            $ 0.87          $ 0.60          $ 0.27          45.0  %     $ 0.31          $ 0.29
diluted
Book value per     $ 9.83          $ 8.75          $ 1.08          12.3  %     $ 9.83          $ 9.50
share
                                                                                               
Selected
Balance Sheet
Data
Investments        $ 40,469        $ 41,052        $ (583    )     -1.4  %     $ 40,469        $ 37,733
Total Loans        $ 547,855       $ 445,904       $ 101,951       22.9  %     $ 547,855       $ 534,309
(gross)
Total Assets       $ 627,448       $ 510,812       $ 116,636       22.8  %     $ 627,448       $ 596,624
Total Deposits     $ 515,418       $ 418,922       $ 96,496        23.0  %     $ 515,418       $ 483,585
Borrowings         $ 52,482        $ 38,916        $ 13,566        34.9  %     $ 52,482        $ 55,730
Stockholders'      $ 57,822        $ 51,481        $ 6,341         12.3  %     $ 57,822        $ 55,899
Equity
                                                                                               
Performance
Ratios
Return on
average assets       1.18    %       0.99    %                                   1.18    %       1.20    %
(annualized)
Return on
average equity       12.42   %       9.49    %                                   12.74   %       12.35   %
(annualized)
Net interest         4.50    %       4.61    %                                   4.35    %       4.57    %
margin
Efficiency           56.94   %       57.34   %                                   55.45   %       57.25   %
ratio
                                                                                               
Asset Quality
Ratios
Non-performing       628             1,571                                       628             478
assets (2)
Non-performing
assets to            0.10    %       0.31    %                                   0.10    %       0.08    %
total assets
Allowance for
loan losses to       1.02    %       1.02    %                                   1.02    %       1.01    %
total loans
Allowance for
loan losses to       8.9             2.9                                         8.9             11.3
non-performing
loans
Net loan
chargeoffs         $ 11            $ 1,944                                     $ -             $ 11
(recoveries)
Other real         $ -             $ -                                         $ -             $ -
estate owned
                                                                                               
Regulatory
Capital Ratios
Total
risk-based           10.6    %       11.6    %                                   10.6    %       10.8    %
capital ratio
Tier 1
risk-based           9.7     %       10.7    %                                   9.7     %       9.8     %
capital ratio
Leverage ratio       9.5     %       10.4    %                                   9.5     %       9.8     %
                                                                                               

(1) On June 20, 2013, the Board of Directors announced a 5-for-4 stock split
of the Bank's common stock in the form of a 25% stock dividend payable July
22, 2013 for shareholders of record as of July 1, 2013. All per share
information for all periods presented has been retroactively adjusted to
reflect the stock split.
(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 performing in
accordance with their modified terms at the date indicated.


Contact:

John Marshall Bank
John R. Maxwell, 703-584-0840