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JMSB Reports Record ROAA of 1.30 % and ROAE of 13.35 % for 3Q2021 ; Linked Quarter Loan Growth ( excluding PPP ) of 11.2 % Annualized October 20 , 2021 RESTON , Va .-- ( BUSINESS WIRE ) -- John Marshall Bancorp , Inc. ( OTCQB : JMSB ) ( the " Company " ) , parent company of John Marshall Bank ( the “ Bank ” ) , reported its financial results for the three and nine months ended September 30 , 2021 . Selected Highlights • Strong Growth - Year - over - year total assets increased 12.5 % or $ 233.6 million to $ 2.10 billion at September 30 , 2021. Gross loans net of unearned income and Paycheck Protection Program ( " PPP " ) loans grew $ 142.3 million or 10.3 % from September 30 , 2020 to September 30 , 2021. Total deposits grew $ 215.4 million or 13.3 % from September 30 , 2020 to September 30 , 2021. Non - interest bearing demand deposits grew 20.2 % or $ 78.0 million from September 30 , 2020 to September 30 , 2021 . - • Record Quarterly Returns Annualized Return on Average Assets ( ROAA ) was 1.30 % and Return on Average Equity ( ROAE ) was 13.35 % for the three months ended September 30 , 2021. Excluding the second quarter of 2010 , when the Company realized a significant , non - recurring income tax benefit from the removal of the valuation allowance on its deferred tax assets , these returns represent quarterly records for the Company . ⚫ Eleventh Consecutive Quarter of Record Earnings - The Company reported net income of $ 6.8 million for the three months ended September 30 , 2021 , a 45.0 % increase over the $ 4.7 million reported for the three months ended September 30 , 2020. The Company reported net income of $ 17.9 million for the nine months ended September 30 , 2021 , a 30.5 % increase over the $ 13.7 million reported for the nine months ended September 30 , 2020. Earnings per diluted share for the three months ended September 30 , 2021 were $ 0.48 , a 41.2 % increase over the $ 0.34 reported for the three months ended September 30 , 2020. Earnings per diluted share for the nine months ended September 30 , 2021 were $ 1.29 , a 29.0 % increase over the $ 1.00 reported for the nine months ended September 30 , 2020 . • Consistent Interest Rate Spread - Excluding the impact of PPP loans , the Company's interest rate spread , defined as yield on earning assets less the cost of funds , has been consistent . Excluding PPP loans , the interest rate spread for the three months ended September 30 , 2021 was 3.91 % versus 3.99 % for the three months ended June 30 , 2021 , 3.90 % for the three months ended December 31 , 2020 and 3.90 % for the three months ended September 30 , 2020. The interest rate spread for the three months ended June 30 , 2021 was inflated by extraordinary payoff volume . • Increased Operating Leverage - Revenues , defined as the sum of net interest income and noninterest income , were $ 16.5 million or 11.6 % greater in the third quarter of 2021 as compared to $ 14.8 million for the third quarter of 2020. This $ 1.7 million increase more than offset the increase in noninterest expense for the third quarter of 2021 of $ 406 thousand or 5.6 % to $ 7.6 million , when compared to the $ 7.2 million for the third quarter of 2020. This continued improvement in operating leverage enabled the efficiency ratio to decrease from 48.8 % for the three months ended September 30 , 2020 to 46.2 % for the three months ended September 30 , 2021. Noninterest expense to average assets declined from 1.60 % for the three months ended September 30 , 2020 to 1.46 % for the three months ended September 30 , 2021 .