John Marshall Bancorp Inc (JMSB)

John Marshall Bancorp Inc. (JMBA): An In-depth Overview

This comprehensive analysis of John Marshall Bancorp Inc. delves into various aspects, ranging from company profile and financials to growth prospects and market dynamics.

Company Profile

History and Background

John Marshall Bancorp Inc. (JMBA) is the holding company for John Marshall Bank, headquartered in McLean, VA. The Bank was established in 2006 and serves individuals and small businesses in Washington, D.C. and Northern Virginia through eight branches. JMBA went public on the NASDAQ in 2021.

Core Business Areas

John Marshall Bank focuses primarily on offering a full range of banking products and services to individuals and small businesses. Their services include:

• Deposit accounts (checking and savings)
• Loan products (consumer, mortgage, commercial)
• Treasury management and wealth management services

Top Products and Market Share

JMBA's top product offerings are deposit accounts and loan products. They hold a market share of 0.43% in the Washington, DC MSA deposit market, with a larger presence in Northern Virginia. While the market share is relatively small compared to larger regional banks, JMBA has shown consistent growth in deposits and loans.

Competitive Landscape:

John Marshall Bank faces competition from larger regional banks like Capital One Financial (COF), SunTrust Banks (STI), and BB&T Corporation (BBT) as well as numerous community banks. Compared to competitors, JMBA focuses on providing personalized service and building long-term relationships with customers.

Total Addressable Market (TAM)

The TAM for community banks in the US is estimated to be around $3 trillion. This includes the total deposits and loans held by community banks across the country.

Financial Performance

Recent Performance

JMBA's recent financial statements show steady growth. In the third quarter of 2023, the company reported:

• Net income: $2.4 million
• Revenue: $14.3 million
• Net interest income: $11.3 million
• Earnings per share (EPS): $0.34

These figures represent year-over-year increases in net income (11%), revenue (8%), and net interest income (9%).

Cash Flow and Balance Sheet

JMBA has a strong cash flow position. They generated $4.3 million in operating cash flow in the third quarter of 2023. Additionally, their balance sheet is healthy, with a capital adequacy ratio exceeding regulatory requirements.

Dividends and Shareholder Returns

Dividend History

JMBA started paying a quarterly dividend in 2022. The current annual dividend yield is 1.8%. The company has a history of increasing its dividend payout, with the most recent increase occurring in Q2 2023.

Shareholder Returns

Total shareholder return (TSR) for JMBA stock has been positive in recent years. Over the past year, the TSR is 25%, outperforming the broader market. However, it is important to note that past performance does not guarantee future returns.

Growth Trajectory

Historical Growth

JMBA has experienced consistent growth over the past five years. Assets have grown at a compound annual growth rate (CAGR) of 15%, loans have grown at a CAGR of 18%, and deposits have grown at a CAGR of 14%.

Future Prospects

JMBA's management team expects continued growth in the coming years. They are focused on expanding their loan portfolio and increasing non-interest income through wealth management and treasury management services.

Market Dynamics

The community banking industry is facing several challenges, including rising interest rates and increased competition. However, JMBA is well-positioned to navigate these challenges due to their strong financials, experienced management team, and focus on customer service.

Competitors

Key competitors for JMBA include:

• Community Banks: Virginia National Bank (VABK), Park View Federal Savings Bank (PVFS), Cardinal Bank (CFNL)
• Regional Banks: Capital One Financial (COF), Truist Financial (TFC)

Potential Challenges and Opportunities

Key Challenges

• Rising interest rates: Rising interest rates can put pressure on net interest margins, impacting profitability.
• Increased competition: The community banking industry is becoming increasingly competitive, making it challenging to attract and retain customers.
• Technological advancements: Fintech companies are disrupting the banking industry, forcing traditional banks to innovate and adapt.

Opportunities

• Expansion into new markets: JMBA has the potential to expand its geographic reach and customer base.
• Product innovation: Developing new and innovative financial products and services can attract new customers and increase profitability.
• Partnerships: Strategic partnerships with other businesses can help JMBA expand its reach and offerings.

Recent Acquisitions

JMBA hasn't made any acquisitions in the past 3 years.

AI-Based Fundamental Rating

Based on an AI analysis, JMBA receives a fundamental rating of 8 out of 10. This rating considers various factors, including financial performance, market position, and future growth prospects.

Sources and Disclaimers

Sources

• John Marshall Bancorp Inc. website (https://www.jmba.com/)
• SEC filings (https://www.sec.gov/edgar/search/)
• S&P Global Market Intelligence (https://www.spglobal.com/marketintelligence)

Disclaimers

This analysis should not be considered investment advice. Investors should conduct thorough research before making investment decisions. The information presented is based on data available as of November 10th, 2023 and may be subject to change.