Executive Summary

Q2 results showed continued operating momentum: EPS of $0.36 rose 5.9% sequentially and 33.3% YoY on higher net interest income and a fifth straight quarter of margin expansion; tax‑equivalent NIM increased 12 bps QoQ to 2.70% and 51 bps YoY .
Loan growth accelerated with $46.4M QoQ balance growth (10% annualized) and a robust $135.5M in new commitments (highest since Q4’22), positioning NII for further gains .
Asset quality remained pristine (no loans >30 days past due, no non‑accruals, no OREO) and capital stayed strong (Bank TRBC 16.3%); efficiency ratio improved to 53.9% .
Versus S&P Global consensus, EPS beat ($0.36 vs $0.34*) while S&P‑defined “revenue” was slightly below ($14.90M* vs $15.11M*); coverage remains thin (one estimate), so estimate dispersion is limited. Values retrieved from S&P Global.
Potential stock catalysts: continuing NIM tailwind from lower funding costs, strong commitment pipeline translating to loan growth, and active capital return (buybacks in Q2; repurchase program extended to Aug 31, 2026) .

What Went Well and What Went Wrong

What Went Well

Margin and earnings momentum: tax‑equivalent NIM up 12 bps QoQ to 2.70%, fifth consecutive quarterly expansion; EPS up to $0.36; CEO: “Primarily through loan growth and a 12 basis point sequential quarter improvement in our net interest margin, we were able to increase pre‑tax, pre‑provision earnings over 50% when compared to the second quarter of 2024.”
Strong production and pipeline: $135.5M in new loan commitments (+40.5% QoQ), highest since Q4’22; loans increased $46.4M QoQ (2.5%) .
Asset quality and capital: no delinquencies >30 days, no non‑accruals or OREO; Bank total risk‑based capital 16.3%; efficiency ratio improved to 53.9% .

What Went Wrong

Funding and deposits: total deposits fell $25.3M QoQ (‑1.3%); uninsured/unsecured deposits remained sizable at $656.0M (vs $677.0M a year ago) .
Provisioning and fee income: provision for credit losses rose to $0.537M vs a recovery of $0.292M in Q2’24; non‑interest income declined modestly YoY (‑$48K), with lower SBA loan sale gains .
Operating expense: non‑interest expense increased 5.1% YoY on hiring and professional fees (partly offset by lower occupancy and marketing), though efficiency improved given stronger NII .

Financial Results

P&L and Profitability (oldest → newest)

Metric	Q4 2024	Q1 2025	Q2 2025
Net Interest Income ($M)	$14.066	$14.097	$14.926
Non-interest Income ($M)	$0.281	$0.505	$0.507
Provision for Credit Losses ($M)	$0.298	$0.170	$0.537
Net Income ($M)	$4.776	$4.810	$5.103
Diluted EPS ($)	$0.33	$0.34	$0.36
NIM (Tax‑Equivalent, %)	2.52%	2.58%	2.70%
Efficiency Ratio (%)	55.4%	56.5%	53.9%
ROA (annualized, %)	0.85%	0.87%	0.91%
ROE (annualized, %)	7.71%	7.76%	8.06%

Consensus vs Actual (S&P Global definitions)

Metric	Q2 2025 Estimate	Q2 2025 Actual
EPS ($)	0.34*	0.36
Revenue ($M, S&P‑defined)	15.11*	14.90*

Values retrieved from S&P Global.
Note: S&P‑defined “Revenue” for banks may differ from GAAP line items (e.g., it may align with net interest income or another standardized definition).

Segment/Portfolio Mix – Loans

Loan Segment ($, % of Total)	Jun 30, 2024	Mar 31, 2025	Jun 30, 2025
Investor Real Estate	$722.4M, 39.6%	$759.0M, 40.7%	$777.6M, 40.7%
Residential Mortgage	$476.8M, 26.2%	$472.7M, 25.3%	$489.5M, 25.6%
Construction & Development	$138.7M, 7.6%	$173.3M, 9.3%	$186.4M, 9.7%
Commercial Owner‑Occupied RE	$349.6M, 19.2%	$318.1M, 17.1%	$320.1M, 16.7%

Key KPIs and Balance Sheet

KPI	Q4 2024	Q1 2025	Q2 2025
Loans Outstanding ($B)	$1.872	$1.870	$1.917
New Loan Commitments ($M)	$118.6	$96.5	$135.5
Total Deposits ($B)	$1.892	$1.922	$1.897
Uninsured/Uncollateralized Deposits ($M)	$659.2	$660.8	$656.0
Liquidity ($M, % Assets)	$727.3 (32.5%)	$786.9 (34.5%)	$755.6 (33.3%)
Bank Total Risk‑Based Capital Ratio (%)	16.2%	16.5%	16.3%
Non‑performing Assets to Assets (%)	0.45%	—	—
Allowance for Loan Credit Losses / Loans (%)	1.00%	1.01%	1.01%

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Quantitative financial guidance	2025	N/A	No formal guidance provided in Q2 materials	Maintained (none)
Dividend	2025 annual cash dividend	$0.25/share (2024)	$0.30/share declared Apr 22, 2025; paid Jul 7, 2025	Raised (+20%)
Share Repurchase Program	Program authorization	Prior expiry Aug 31, 2025	Extended to Aug 31, 2026; up to 700k shares	Extended

Earnings Call Themes & Trends

Note: No earnings call transcript was available in the document catalog for Q2 2025.

Topic	Previous Mentions (Q4 2024, Q1 2025)	Current Period (Q2 2025)	Trend
Net interest margin trajectory	Fed cuts cited; NIM up to 2.52% in Q4’24 ; to 2.58% in Q1’25	NIM to 2.70% (+12 bps QoQ), fifth straight quarterly expansion	Improving
Loan demand/commitments	Q4’24 commitments $118.6M; pipeline strong	Commitments $135.5M (+40.5% QoQ); loans +$46.4M QoQ	Strengthening
Funding costs/deposits	Cost of interest‑bearing liabilities 3.62% in Q4’24 ; improvement continued in Q1’25 (3.48%)	Cost of interest‑bearing liabilities 3.38%; deposits ‑1.3% QoQ	Mixed: better costs, deposits slightly down
Asset quality	One 90‑day loan at YE paid off; otherwise clean	No past dues >30 days, no non‑accruals/OREO	Strong/stable
Capital/returns	Strong capital; NIM/earnings momentum	TRBC 16.3%; buybacks of 76,804 shares avg $17.12 in Q2	Supportive
Macro commentary	CEO cited tariffs and gov’t efficiency headwinds restraining borrowing, but DC MSA resilient (Q1)	Emphasis on momentum and underwriting discipline	Cautiously constructive

Management Commentary

“The previously reported growth in commitments translated into meaningful loan balance growth… we were able to increase pre‑tax, pre‑provision earnings over 50% when compared to the second quarter of 2024. While our underwriting remains unchanged, our momentum is building. We have the asset quality, capital and liquidity to support increased growth and returns.” — Chris Bergstrom, President & CEO .
“In the first quarter of 2025, the Company produced $96.5 million in loan commitments… The overlay of tariffs and government efficiency initiatives have restrained borrowing… Our balance sheet… is a source of strength that we intend to use to grow our customer base, attract qualified bankers, increase core funding, grow loans sensibly and continue to drive earnings growth.” — Chris Bergstrom (Q1’25) .

Q&A Highlights

No Q2’25 earnings call transcript was available; therefore, no Q&A to summarize.

Estimates Context

EPS beat consensus: $0.36 vs $0.34* for Q2’25; only one estimate was recorded for EPS in the period. Values retrieved from S&P Global.
S&P‑defined “Revenue” slightly below: $14.90M* actual vs $15.11M* consensus for Q2’25 (one estimate). Values retrieved from S&P Global.
Thin coverage (one estimate) suggests limited price‑setting from consensus misses/beats this quarter.

Key Takeaways for Investors

Margin expansion remains the primary earnings driver: NIM (TE) rose to 2.70% (+12 bps QoQ; +51 bps YoY) with lower deposit rates and mix actions; efficiency ratio improved to 53.9% .
Production momentum supports NII trajectory: $135.5M commitments (highest since Q4’22) and loans +$46.4M QoQ underpin forward NII growth potential .
Asset quality is a differentiator: zero past dues >30 days, zero non‑accruals/OREO, zero net charge‑offs in Q2; ACL stable at 1.01% of loans .
Funding watch‑item: deposits ‑1.3% QoQ (mix shifting away from higher‑cost CDs), uninsured/unsecured deposits $656.0M; liquidity ample at $755.6M (33.3% of assets) .
Capital return continues: share repurchases in Q2 (76,804 shares at $17.12 avg) and repurchase program extended to Aug 31, 2026; annual dividend raised to $0.30 per share .
EPS beat vs S&P Global consensus with limited coverage; “revenue” (S&P‑defined) slightly below — expect estimate revisions to focus on NIM durability, loan growth conversion, and deposit trends. Values retrieved from S&P Global.
Medium‑term, focus on: sustained NIM tailwind from deposit repricing, conversion of commitments to funded balances, disciplined credit in CRE/office (non‑owner office commitments $112.0M with 67% maturing 2029+) .

S&P Global estimates disclaimer: All figures marked with an asterisk (*) are values retrieved from S&P Global.

John Marshall Bancorp, Inc. (JMSB)·Q2 2025 Earnings Summary