Overview

• U.S. community bank's Q2 net income rose 38% yr/yr, with EPS up 39%

• Q2 net interest income grew; net interest margin expanded to 2.99%

• Company raised quarterly dividend to $0.10 per share

Outlook

• Company says loan pipeline for the third quarter looks strong

• Company believes it is well-positioned to grow balance sheet, profits and shareholder value

Result Drivers

• LOAN GROWTH - Co said loan portfolio grew $41.2 mln in Q2, led by construction and residential mortgage lending

• NET INTEREST MARGIN EXPANSION - Net interest margin rose to 2.99% as higher loan yields and lower deposit rates boosted net interest income

• LOWER DEPOSIT COSTS - Interest expense fell as deposit rates declined across all categories, supporting margin improvement

Company press release: ID:nBw6H5YNDa

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q2 Net Income		$7.02 mln
Q2 CET1 Capital Ratio		15.60%
Q2 Net Interest Margin		2.99%

Analyst Coverage

• The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy."

• Wall Street's median 12-month price target for John Marshall Bancorp Inc is $24.00, about 9.4% above its July 21 closing price of $21.93

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 12 three months ago

Reuters Recommended Reads

• July 20 - ServisFirst Bancshares Q2 EPS rises 40% on loan growth, higher net interest margin

• July 21 - FVCBankcorp Q2 net income rises on higher loan yields, lower costs

• July 22 - Juniata Valley Q2 profit rises 32% on loan growth, higher interest income

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