John Marshall Bancorp Reports Robust Q1 2026 Results: Net Income Up 27%, Asset Quality Remains Strong

Reston, VA – April 29, 2026: John Marshall Bancorp, Inc. (Nasdaq: JMSB), parent company of John Marshall Bank, announced outstanding financial results for the quarter ended March 31, 2026. The Company delivered continued growth in net interest margin, solid loan and deposit expansion, and maintained exceptional asset quality. These developments are likely to be price-sensitive and may impact JMSB’s share value.

Key Financial Highlights

• Net Income: \$6.1 million for Q1 2026, up 26.8% from \$4.8 million in Q1 2025.
• Earnings Per Share: Diluted EPS of \$0.43, up 26.5% from \$0.34 a year ago.
• Return on Average Assets: 1.06%, up from 0.87% in Q1 2025.
• Return on Average Equity: 9.19%, up from 7.76% in Q1 2025.
• Net Interest Margin: Expanded for the eighth consecutive quarter to 2.87%, up 29 basis points from 2.58% in Q1 2025. 14 basis points of the increase occurred in Q1 2026.
• Net Interest Income: \$16.5 million, up 17.1% from \$14.1 million in Q1 2025.
• Loan Growth: Gross loans increased by \$103.3 million (5.5%) year-over-year, driven by construction & development and residential mortgage loans.
• Deposit Growth: Total deposits grew by \$65.6 million (3.4%) year-over-year; non-interest bearing demand deposits grew by \$20.4 million (4.7%). These non-interest bearing deposits now represent 23.1% of total deposits, up from 21.9% at year-end 2025.
• Asset Quality: No charge-offs in Q1 2026. Only one non-accrual loan (\$984k SBA 7(a)), fully guaranteed by the SBA. No other real estate owned assets.
• Efficiency Ratio: Improved to 53.1% from 56.5% in Q1 2025, reflecting strong positive operating leverage.
• Book Value Per Share: Increased 7.2% to \$19.00 from \$17.72 a year ago.
• Dividend: Quarterly cash dividend of \$0.09 per share declared, payable June 3, 2026. This reflects a 20% increase over the 2025 annual dividend.
• Share Repurchase: 103,507 shares repurchased at an average price of \$19.69 in Q1 2026.
• Share Price: Nearly 23% increase in share price from March 31, 2025 to March 31, 2026.
• Capital Ratios: Bank’s total risk-based capital ratio at 16.5%, well above regulatory thresholds.
• Liquidity: Liquidity position at \$881 million (37.5% of assets), up from \$827 million at year-end 2025.

Management Commentary

Chris Bergstrom, President and CEO, highlighted the eighth consecutive quarter of net interest margin improvement, robust loan growth, and strong asset quality. He reiterated the Company’s commitment to technology investment and tailored banking services, aiming to cultivate new relationships and deepen existing ones. Bergstrom noted JMSB’s strong capital position, enabling the Company to pursue loan growth or further share repurchases as appropriate.

Detailed Review: Income Statement and Balance Sheet

• Interest Income: Grew by \$1.8 million (6.5%) year-over-year, driven by higher loan balances and yields.
• Interest Expense: Declined by \$0.6 million (4.8%), mainly from lower rates on time deposits, interest-bearing checking, and money market accounts.
• Provision for Credit Losses: Only \$23k for Q1 2026, down from \$170k in Q1 2025, reflecting portfolio mix and improved economic variables.
• Non-Interest Income: Decreased by \$221k (43.8%), mainly due to lower insurance commissions.
• Non-Interest Expense: Up \$675k (8.2%), mainly from increased headcount and salaries, partially offset by lower marketing expense.

Asset Quality and Loan Portfolio

• Allowance for Loan Credit Losses: \$20.0 million (1.01% of loans), up from \$18.8 million a year ago.
• Non-Performing Assets: Only \$984k (0.04% of assets), entirely SBA guaranteed.
• Commercial Real Estate: Owner-occupied and non-owner occupied portfolios demonstrated strong debt-service-coverage and loan-to-value ratios.

Capital and Liquidity

• Shareholders’ Equity: Up \$15.1 million (6.0%) to \$268.1 million.
• Book Value Per Share: \$19.00, up from \$17.72.
• Regulatory Ratios: Total risk-based capital ratio at 16.5%, Tier 1 at 15.4%, leverage ratio at 12.6%.
• Liquidity: \$881 million in cash, unencumbered securities, and secured borrowing capacity (37.5% of assets).
• Deposit Composition: Core customer funding sources represented 82.5% of total funding; wholesale sources declined.

Other Notable Developments

• Dividend Increase: Quarterly dividend rate up 20% year-over-year.
• Share Repurchase: 103,507 shares repurchased in Q1 2026, reflecting management confidence in the Company’s value.
• Share Price Performance: Nearly 23% increase year-over-year, reflecting strong investor sentiment.
• Technology and Personnel Investment: Ongoing focus to enhance client experience and growth.

Risks and Forward-Looking Statements

The Company cautions that forward-looking statements are subject to risks including regional economic conditions, asset quality, loan performance, liquidity, interest rate changes, competition, regulatory changes, and other uncertainties. Investors should consider these risks when evaluating the Company’s future outlook.

Conclusion

John Marshall Bancorp’s Q1 2026 report reveals strong earnings growth, robust asset quality, expanding margins, and positive operating leverage. The dividend increase, share repurchases, and share price performance underline management’s confidence and shareholder value creation. These results and strategic actions are potentially price-moving and highly relevant for JMSB investors.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. All financial data is unaudited and subject to change. Investors should review official filings and consult financial advisors before making investment decisions.

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