John Marshall Bancorp (JMSB) just turned in another steady quarter for FY 2025, with Q3 revenue of about US$15.9 million and basic EPS of roughly US$0.38 on net income of US$5.4 million. The bank has seen revenue move from US$13.4 million and EPS of about US$0.30 in Q3 2024 to US$15.9 million and EPS of roughly US$0.38 in Q3 2025. Trailing 12 month EPS sits around US$1.41 on net income of about US$20.0 million, which highlights a story where higher earnings and firmer profitability metrics invite a closer look at what is driving margins.

See our full analysis for John Marshall Bancorp.

With the headline numbers on the table, the next step is to see how this earnings profile lines up against the widely held narratives around John Marshall Bancorp and whether the latest margin picture supports or challenges those views.

Margins steady around 2.7% NIM

• Net interest margin sits at 2.73% in Q3 FY 2025, compared with 2.7% in Q2 FY 2025 and 2.3% in Q3 FY 2024, while the cost to income ratio is 55.6% versus 53.9% in Q2 FY 2025 and 58.3% in Q3 FY 2024.
• What stands out for a more bullish angle is that the recent 19.2% trailing 12 month earnings growth and a 33.8% net profit margin come alongside this 2.73% net interest margin. This raises a few questions:
  • The margin level and cost to income ratio above 50% suggest profitability is being supported by both revenue and cost control, which ties back to that 33.8% net margin figure.
  • At the same time, the earlier 5 year annualized earnings decline of 12.2% shows that this stronger trailing year sits against a softer longer history, so bullish arguments have to focus on whether numbers like the 2.73% margin and current cost base can keep that improvement in place.

To see how these margin trends fit into the broader story that investors are debating, have a look at the full narrative and valuation workup for JMSB now. 📊 Read the full John Marshall Bancorp Consensus Narrative.

Loan book edges toward US$1.9b

• Total loans reached US$1,933.3 million in Q3 FY 2025, compared with US$1,912.3 million in Q2 FY 2025 and US$1,838.1 million in Q3 FY 2024, while non performing loans were US$10.0 million at Q4 FY 2024.
• What is interesting for a more bullish reading is that this loan base of just under US$2.0b is paired with trailing 12 month net income of US$20.0 million and basic EPS of about US$1.41, which interact with two different storylines:
  • Supporters can point out that earnings of US$20.0 million on this loan book and a 33.8% net margin suggest the bank is converting its assets into profit at a solid clip.
  • Cautious investors may come back to the 12.2% annual earnings decline over five years and the presence of almost US$10.0 million of non performing loans at Q4 FY 2024, using those figures to argue that asset quality and long term profitability trends still deserve close attention even with the latest improvement.

P/E of 14.1x with DCF at US$18.64

• At a share price of US$20.00 and trailing EPS of roughly US$1.41, JMSB trades on a P/E of 14.1x versus 11.8x for the US banks industry and 13.5x for peers, with a DCF fair value of about US$18.64 per share and a trailing net margin of 33.8% versus 31.6% a year earlier.
• Bears often focus on valuations that sit above sector averages, and here they can point to the 14.1x P/E versus 11.8x for the industry and the share price above the US$18.64 DCF fair value. Yet the latest profitability numbers complicate that view:
  • The trailing year earnings growth of 19.2% and higher net margin of 33.8% give some support to investors who see the current P/E as reflecting a healthier recent profit profile than the 5 year annualized decline of 12.2% might suggest.
  • On the other hand, critics can argue that paying above the DCF fair value and above the industry P/E still requires confidence that recent earnings and margins, rather than the longer term decline, will be the better guide to future performance.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on John Marshall Bancorp's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

See What Else Is Out There

JMSB's recent earnings improvement sits alongside a 5 year annualized earnings decline of 12.2% and almost US$10.0 million of non performing loans, which may leave some investors cautious.

If that mix of softer long term earnings and asset quality risk feels uncomfortable, you may wish to shift your focus toward companies in stable growth stocks screener (2169 results) that show steadier revenue and profit trends across cycles.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.