John Marshall Bancorp JMSB Q2 2026 earnings

The following charts provide geographic detail and stated maturity summaries for the Company’s non-owner occupied office portfolio as of June 30, 2026:

Income Statement Review

Quarterly Results The Company reported net income of $7.0 million for the second quarter of 2026, an increase of $1.9 million or 37.5% when compared to $5.1 million for the second quarter of 2025.

For the three months ended June 30, 2026, net interest income increased $2.4 million or 16.1% to $17.3 million compared to $14.9 million for the three months ended June 30, 2025. During the same period, interest income grew $1.9 million or 6.8%, driven by higher interest income on loans, while interest expense declined by $0.5 million or 3.9%, predominantly due to lower interest expense on all interest-bearing deposit categories.

The annualized net interest margin for the second quarter of 2026 was 2.99% compared to 2.69% for the same period in 2025. The increase in net interest margin was primarily due to increases in average balances and yields of the loan portfolio coupled with lower rates on interest-bearing deposits.

The cost of interest-bearing liabilities was 3.13% for the second quarter of 2026 compared to 3.38% for the same quarter in the prior year driven by the 26 basis point decline in rates on interest-bearing deposits. Rates declined across all deposit categories, most notably in time deposits, money market accounts, and savings accounts, which declined by 35 basis points, 28 basis points, and 18 basis points, respectively. The yield on interest-earning assets was 5.13% for the second quarter of 2026 compared to 5.03% for the same period in 2025 primarily due to an 11 basis point increase in loan yield coupled with a 35 basis point increase in securities yield. These increases were partially offset by a 75 basis point decrease in yield on interest-bearing deposits in other banks, as a result of three federal funds rate cuts totaling 75 basis points during the preceding twelve months. Average loans increased by $110.5 million between the three months ended June 30, 2026 and the three months ended June 30, 2025, which was primarily attributable to origination volume in the construction & development and residential mortgage loan portfolios subsequent to June 30, 2025.

The Company recorded a $258 thousand provision for credit losses for the second quarter of 2026 compared to $537 thousand for the second quarter of 2025. Provision for credit losses on funded loans totaled $384 thousand, while provision for credit losses on unfunded loan commitments was a recovery of $126 thousand during the three months ended June 30, 2026. The provision for credit losses on funded loans during the most recent quarter reflected the growth of the Company’s loan portfolio, and the related change in the portfolio mix, in combination with the impact of the previously mentioned charge-offs. Recovery of the provision for credit losses on unfunded loan commitments was due to a lower amount of available loan commitments at June 30, 2026 as compared to March 31, 2026.

Non-interest income increased $936 thousand or 184.6% during the second quarter of 2026 compared to the second quarter of 2025, which was primarily attributable to a $835 thousand gain recognized on a sale of the Company’s interest in one of its equity investment units. Excluding this gain, non-interest income increased $101 thousand or 19.9% during the most recent quarter as compared to the prior year quarter, as a result of a $80 thousand increase in mark-to-market adjustments on investments related to the Company’s non-qualified deferred compensation plan, a $50 thousand increase in other fee income due to higher early termination fees on customers’ time deposits, and a $43 thousand increase in other income, as a result of receipt of a class action settlement claim from a health insurance carrier. These increases were partially offset by a $61 thousand decrease in gain on sale of SBA 7(a) loans.

Non-interest expense increased $1.2 million or 14.2% during the second quarter of 2026 compared to the second quarter of 2025 primarily resulting from an increase in salaries and employee benefits and higher marketing expense. Salaries and employee benefits increased $979 thousand, as a result of increases in incentive compensation, higher mark-to-market adjustments on the Company’s non-qualified deferred compensation plan and the impact of the annual salary merit increase. Incentive compensation accruals can fluctuate materially from quarter to quarter, based upon the Company’s financial performance and conditions measured against, among other evaluation criteria, our strategic plan and budget. At the end of each year, the ultimate determination of the incentive compensation is approved by the Board of Directors. Marketing expense increased $131 thousand mainly due to various public relations and advertising initiatives.

For the three months ended June 30, 2026, annualized non-interest expense to average assets was 1.63% compared to 1.49% for the three months ended June 30, 2025. This increase was primarily due to the growth in non-interest expense outpacing the growth in average assets during the period. For the three months ended June 30, 2026, the efficiency ratio declined to 50.5% compared to 53.9% for the three months ended June 30, 2025. The improvement in the efficiency ratio was due to a 21.7% growth in total revenue, which outpaced a 14.2% increase in non-interest expense over the period.

Return on average assets for the quarter ended June 30, 2026 was 1.20% and return on average equity was 10.34% compared to 0.91% and 8.06%, respectively, for the second quarter of 2025.

Year-to-Date Results The Company reported net income of $13.1 million for the six months ended June 30, 2026, an increase of $3.2 million or 32.4% when compared to the same period in 2025.

Net interest income for the six months ended June 30, 2026 increased $4.8 million or 16.6% compared to the same period of 2025. The annualized net interest margin for the six months ended June 30, 2026 was 2.93% as compared to 2.63% for the same period in the prior year. These increases were driven primarily by the increase in average balances and yields of the loan portfolio in combination with a decrease in rates of interest-bearing deposits.

The cost of interest-bearing liabilities was 3.14% for the six months ended June 30, 2026 compared to 3.43% for the six months ended June 30, 2025. The decrease in the cost of interest-bearing liabilities was primarily due to a 30 basis point decrease in the cost of interest-bearing deposits as a result of the repricing of the Company’s time deposits coupled with a decrease in rates offered on money market, NOW and savings deposit accounts since the second quarter of 2025. The yield on interest-earning assets was 5.10% for the six months ended June 30, 2026 compared to 5.01% for the same period in 2025. The increase in yield on interest-earning assets was primarily due to a nine basis point and a 32 basis point increase in yields on the Company’s loans and securities, respectively, as assets repriced at higher prevailing interest rates subsequent to the second quarter of 2025. Average loans increased $108.2 million between the six months ended June 30, 2026 and 2025, which was primarily attributable to origination volume in the construction & development, and residential mortgage loan portfolios subsequent to June 30, 2025.

The Company recorded a $281 thousand provision for credit losses for the six months ended June 30, 2026 compared to a $707 thousand provision for credit losses for the six months ended June 30, 2025. The provision for credit losses during the six months ended June 30, 2026 was primarily a result of changes in the composition and volume of the loan portfolio in combination with the impact of the previously mentioned charge-offs recorded during the most recent quarter. All other model assumptions, including economic forecasts used in the quantitative portion of the model, stayed relatively stable during the period.

Non-interest income increased $716 thousand or 70.8% during the six months ended June 30, 2026 compared to the same period of 2025. The increase was primarily driven by previously mentioned $835 thousand gain on sale of the Company’s investment unit in combination with a $51 thousand increase in other income driven by the receipt of a class action settlement claim from a health insurance carrier and a $43 thousand increase in mark-to-market adjustments on investments related to the Company’s non-qualified deferred compensation plan. These increases were partially offset by a $153 thousand decrease in bankers insurance commission coupled with a $91 thousand decline in gain on sale of SBA 7(a) loans.

Non-interest expense increased $1.9 million or 11.2% during the six months ended June 30, 2026 compared to the same period in 2025 predominantly due to a $1.5 million or 14.6% increase in salaries and employee benefits, as discussed above in the quarterly results. Other expenses increased $301 thousand or 6.2% for the six months ended June 30, 2026 compared to the six months ended June 30, 2025. Increases were primarily in state franchise tax and FDIC insurance, due to higher assessment bases, and an increase in marketing expense. Furniture and equipment expenses increased $63 thousand or 10.0% for the six months ended June 30, 2026 compared to the same period in 2025. The increase was due to investment and maintenance in technology.

For the six months ended June 30, 2026, annualized non-interest expense to average assets was 1.59% compared to 1.49% for the six months ended June 30, 2025.

For the six months ended June 30, 2026, the efficiency ratio was 51.8% compared to 55.1% for the six months ended June 30, 2025. The improvement in the efficiency ratio was due to an 18.4% growth in total revenue, which outpaced an 11.2% increase in non-interest expense over the period.

Return on average assets for the six months ended June 30, 2026 was 1.13% and return on average equity was 9.77% compared to 0.89% and 7.91%, respectively, for the six months ended June 30, 2025.

About John Marshall Bancorp, Inc.

John Marshall Bancorp, Inc. is the bank holding company for John Marshall Bank. The Bank is headquartered in Reston, Virginia with eight full-service branches located in Alexandria, Arlington, Loudoun, Prince William, Reston, and Tysons, Virginia, as well as Rockville, Maryland, and Washington, D.C. The Bank is dedicated to providing exceptional value, personalized service and convenience to local businesses and consumers in the Washington, D.C. Metropolitan area. The Bank offers a comprehensive line of sophisticated banking products and services along with experienced staff to help achieve customers’ financial goals. Dedicated relationship managers serve as direct points-of-contact, providing subject matter expertise in a variety of niche industries including commercial real estate, trade contractors, government contractors, health services, nonprofits, private and charter schools, professional services, property management, community associations, and title and escrow services. Learn more at www.johnmarshallbank.com.

Cautionary Note Regarding Forward-Looking Statements

In addition to historical information, this press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are based on certain assumptions and describe future plans, strategies and expectations of the Company. These forward-looking statements are generally identified by use of the words “believe,” “expect,” “intend,” “anticipate,” “estimate,” “project,” “will,” “should,” “may,” “view,” “opportunity,” “potential,” or similar expressions or expressions of confidence. Our ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on the operations of the Company and the Bank include, but are not limited to, the following: the concentration of our business in the Washington, D.C. metropolitan area and the effect of changes in the economic, political and environmental conditions on this market, including shutdowns and potential reductions in spending by the United States government, and related reductions in the federal workforce; adequacy of our allowance for loan credit losses, allowance for unfunded commitments credit losses, and allowance for credit losses associated with our held-to-maturity and available-for-sale securities portfolios; deterioration of our asset quality; future performance of our loan portfolio with respect to recently originated loans; the level of prepayments on loans and mortgage-backed securities; liquidity, interest rate and operational risks associated with our business; changes in our financial condition or results of operations that reduce capital; our ability to maintain existing deposit relationships or attract new deposit relationships; changes in consumer spending, borrowing and savings habits; inflation and changes in interest rates that may reduce our margins or reduce the fair value of financial instruments; changes in the monetary and fiscal policies of the United States government, including policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System; additional risks related to new lines of business, products, product enhancements or services; increased competition with other financial institutions and fintech companies; adverse changes in the securities markets; changes in the financial condition or future prospects of issuers of securities that we own; our ability to maintain an effective risk management framework; changes in laws or government regulations or policies affecting financial institutions, including changes in regulatory structure and in regulatory fees and capital requirements; compliance with legislative or regulatory requirements; results of examination of us by our regulators, including the possibility that our regulators may require us to increase our allowance for credit losses or to write-down assets or take similar actions; potential claims, damages, and fines related to litigation or government actions; the effectiveness of our internal controls over financial reporting and our ability to remediate any future material weakness in our internal controls over financial reporting; geopolitical conditions, including trade restrictions and tariffs, and acts or threats of terrorism and/or military conflicts, or actions taken by the U.S.

or other governments in response to trade restrictions and tariffs, and acts or threats of terrorism and/or military conflicts, negatively impacting business and economic conditions in the U.S. and abroad; the effects of weather-related or natural disasters, which may negatively affect our operations and/or our loan portfolio and increase our cost of conducting business; public health events (such as the COVID-19 pandemic) and governmental and societal responses thereto; technological risks and developments, and cyber threats, attacks, or events; changes in accounting policies and practices; our ability to successfully capitalize on growth opportunities; our ability to retain key employees; deteriorating economic conditions, either nationally or in our market area, including higher unemployment and lower real estate values; implications of our status as a smaller reporting company and as an emerging growth company; and other factors discussed in the Company’s reports (such as our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K) filed with the Securities and Exchange Commission. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. The Company does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions which may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

Annualized, pro forma, projected and estimated numbers are used for illustrative purposes only, are not forecasts and may not reflect actual results.

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• Derived from audited consolidated financial statements.