John Marshall Bancorp, Inc.
For the period ended Sep 30, 2025. Filed Nov 14, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 14, 2025
JMSB$23.20+1.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-12.
0001558370-25-011157
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-14.
0001104659-25-112012
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 149 previous paragraphs and 148 current paragraphs.
76 unchanged; 65 reworded; 6 added; 8 removed; 0 previous and 1 current paragraphs rearranged.
Tables are not compared: 72 previous and 71 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (6)
Current report
Results of Operations - Nine months ended September 30, 2025 and September 30, 2024
Current report
The following table summarizes non-interest income for the nine months ended September 30, 2025 and 2024.
Current report
partially offset by a $66 thousand increase to the mark-to-market adjustments on the Company’s nonqualified deferred compensation plan and a $37 thousand increase in customer swap fee income.
Current report
Non-interest expense increased $1.0 million or 12.5% during the three months ended September 30, 2025 compared to the three months ended September 30, 2024, primarily due to a $796 thousand or 16.3% increase in salaries and employee benefits, as discussed in the year-to-date results above. Other expenses grew due to a combination of higher state franchise taxes and general operating expenses. These increases were partially offset by lower occupancy expense, resulting from the negotiation of more favorable rents on three branch locations.
Current report
Interest income increased by $0.5 million or 1.8% to $29.0 million on a fully tax-equivalent basis for the three months ended September 30, 2025 compared to $28.5 million for the three months ended September 30, 2024, driven primarily by higher average balances and yields on the Company’s loan portfolio.
Current report
Non-interest expense increased $1.0 million or 12.5% during the three months ended September 30, 2025 compared to the three months ended September 30, 2024 primarily as a result of an increase in salaries and employee benefits expense, as discussed in the year-to-date results above. State franchise taxes increased by $67 thousand due to a higher assessment base, mainly a result of the growth of the Company’s shareholder’s equity during the period. Occupancy expense declined by $39 thousand, resulting from the negotiation of more favorable rents on three branch locations.
Removed paragraphs (8)
Previous report
Results of Operations – Six Months Ended June 30, 2025 and June 30, 2024
Previous report
The following table summarizes non-interest income for the six months ended June 30, 2025 and June 30, 2024.
Previous report
Non-interest expense increased $404 thousand or 5.1% during the three months ended June 30, 2025 compared to the three months ended June 30, 2024, primarily due to increases in salaries and employee benefits expense and higher, professional fees, partially offset by lower occupancy expense. The increase in salaries and employee benefits expense stemmed from the hiring of additional business development personnel since June 30, 2024. The increase in professional fees was due to the use of external advisors to assist the Company with various regulatory filings during the most recent quarter. A decline in occupancy expense was predominantly related to the relocation of a branch to a lower cost and more favorable location, and lower marketing expense due to more efficient advertising initiatives.
Previous report
The following table reconciles net income to pre-tax, pre-provision earnings, which is a Non-GAAP measure:
Previous report
(1)Pre-tax, pre-provision earnings is calculated by adjusting income before income taxes for provision for (recovery of) credit losses.
Previous report
Interest income increased by $1.1 million or 3.9% to $27.9 million on a fully tax-equivalent basis for the three months ended June 30, 2025 compared to $26.8 million for the three months ended June 30, 2024, driven by both an increase in rates and volume on interest earning assets. The increases in rates and volume on interest-earning assets was primarily attributable to the Company’s loan portfolio.
Previous report
Non-interest expense increased $404 thousand or 5.1% during the second quarter of 2025 compared to the second quarter of 2024 primarily as a result of an increase in salaries and employee benefits expense. The $303 thousand or 6.2% increase in salaries and employee benefits expense stemmed from the hiring of additional personnel. The Company hired five business development officers since June 30, 2024. Professional fees increased by $97 thousand or 46.6% due to the use of external advisors to assist the Company with various regulatory filings during the most recent quarter. These increases were partially offset by a $102 thousand or 105.2% decrease in advertising expenses. This decrease was primarily driven by a one-time, non-recurring event in which a third-party vendor reimbursed the Company for marketing initiatives as part of an existing agreement. The increases were also partially offset by a $41 thousand or 9.2% decline in occupancy expense, resulting from relocating a branch to a lower cost and more favorable location.
Previous report
NM – Not meaningful
Reworded paragraphs (65)
Previous wording
This discussion and analysis contains financial information determined by methods other than in accordance with GAAP. Management believes that the supplemental non-GAAP information provides a better comparison of period-to-period operating performance. Additionally, the Company believes this information is utilized by regulators and market analysts to evaluate a company’s financial condition and therefore, such information is useful to investors. Non-GAAP measures used in this report consist of tax-equivalent net interest income, tax-equivalent net interest margin, and pre-tax, pre-provision earnings.
Current wording
This discussion and analysis contains financial information determined by methods other than in accordance with GAAP. Management believes that the supplemental non-GAAP information provides a better comparison of period-to-period operating performance. Additionally, the Company believes this information is utilized by regulators and market analysts to evaluate a company’s financial condition and therefore, such information is useful to investors. Non-GAAP measures used in this report consist of tax-equivalent net interest income and tax-equivalent net interest margin.
Previous wording
As of June 30, 2025, the Company had total consolidated assets of $2.27 billion, total loans net of unearned income of $1.92 billion, total deposits of $1.90 billion and total shareholders’ equity of $253.7 million.
Current wording
As of September 30, 2025, the Company had total consolidated assets of $2.32 billion, total loans net of unearned income of $1.94 billion, total deposits of $1.97 billion and total shareholders’ equity of $259.7 million.
Previous wording
The following table contains selected historical consolidated financial data as of the dates and for the periods shown. The selected balance sheet data as of June 30, 2025 and June 30, 2024 and the selected income statement data for the three and six months ended June 30, 2025 and June 30, 2024 have been derived from our consolidated financial statements.
Current wording
The following table contains selected historical consolidated financial data as of the dates and for the periods shown. The selected balance sheet data as of September 30, 2025 and 2024 and the selected income statement data for the three and nine months ended September 30, 2025 and 2024 have been derived from our consolidated financial statements.
Previous wording
The Company reported net income of $9.9 million for the six months ended June 30, 2025, an increase of $1.8 million or 22.2% when compared to the six months ended June 30, 2024. Diluted earnings per common share were $0.69 for the six months ended June 30, 2025, compared to diluted earnings per common share of $0.57 for the six months ended June 30, 2024, representing a 21.0% increase.
Current wording
The Company reported net income of $15.3 million for the nine months ended September 30, 2025, an increase of $3.0 million or 24.1% when compared to the nine months ended September 30, 2024. Diluted earnings per common share were $1.07 for the nine months ended September 30, 2025, compared to diluted earnings per common share of $0.87 for the nine months ended September 30, 2024, representing a 23.0% increase.
Previous wording
Net interest income for the six months ended June 30, 2025 increased $5.2 million or 21.8% compared to the same period of 2024, driven primarily by the decrease in costs of interest-bearing liabilities coupled with the increases in yield on interest-earning assets.
Current wording
Net interest income for the nine months ended September 30, 2025 increased $7.6 million or 20.7% compared to the same period of 2024, driven primarily by the decrease in rates of interest-bearing liabilities coupled with increases in average balances and yields of the loan portfolio.
Previous wording
The Company recorded a $707 thousand provision for credit losses for the six months ended June 30, 2025 compared to a $1.1 million recovery of provision for credit losses for the six months ended June 30, 2024. Additional discussion of the provision for credit losses is included below under the headingProvision for Credit Losses.
Current wording
The Company recorded a $1.1 million provision for credit losses for the nine months ended September 30, 2025 compared to a $0.7 million recovery of credit losses for the nine months ended September 30, 2024. Additional discussion of the provision for credit losses is included below under the headingProvision for Credit Losses.
Previous wording
Non-interest income decreased $361 thousand during the six months ended June 30, 2025 compared to the same period of 2024. The decrease was primarily driven by a $252 thousand decrease on the recorded gain on sale of the government guaranteed portion of the SBA 7(a) loans due to decreased sale activity, a $64 thousand decrease in swap fee income and a $46 thousand decrease in insurance commissions. These decreases were partially offset by higher mark-to-market valuation adjustments on the Company’s non-qualified deferred compensation plan totaling $47 thousand.
Current wording
Non-interest income decreased $325 thousand during the nine months ended September 30, 2025 compared to the same period of 2024. The decrease was primarily driven by a $306 thousand decrease on the recorded gain on sale of the government guaranteed portion of the SBA 7(a) loans due to decreased sale activity along with a $53 thousand decrease in insurance commissions. These decreases were partially offset by a $66 thousand increase to the mark-to-market adjustments on the Company’s nonqualified deferred compensation plan and a $37 thousand increase in swap fee income.
Previous wording
Non-interest expense increased $728 thousand or 4.6% for the six months ended June 30, 2025 compared to the six months ended June 30, 2024. The increase in non-interest expense was primarily driven by a $592 thousand or 6.1% increase in salaries and employee benefits. The Company hired five business development officers during the preceding twelve months. Other expenses increased $189 thousand or 4.1% for the six months ended June 30, 2025 compared to the six months ended June 30, 2024. Increases were primarily in data processing and franchise tax, partially offset by a reduction in marketing expense. Furniture and equipment expenses increased $32 thousand or 5.4% for the six months ended June 30, 2025 compared to the same period in 2024. The increase was due to investment and maintenance in technology. These increases were partially offset by a decrease in the Company’s occupancy expense, which declined by $85 thousand or 9.5% for the six months ended June 30, 2025 compared to the six months ended June 30, 2024 due to relocating a branch to a less expensive, more favorable location.
Current wording
Non-interest expense increased $1.7 million or 7.3% for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. The increase in non-interest expense was predominantly due to a $1.4 million or 9.5% increase in salaries and employee benefits as the Company hired six business development officers during the preceding twelve months and incurred higher incentive compensation expense tied to performance. Other expenses increased $411 thousand or 5.8% for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. Increases in other expenses were primarily in data processing, state franchise tax and other general operating expenses. Furniture and equipment expenses increased $57 thousand or 6.3% for the nine months ended September 30, 2025 compared to the same period in 2024. The increase was due to investment and maintenance in technology. These increases were partially offset by a decrease in the Company’s occupancy expense, which declined by $125 thousand or 9.3% for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024, as a result of the negotiation of more favorable rents on three branch locations.
Previous wording
The ROAA for the six months ended June 30, 2025 and June 30, 2024 was 0.89% and 0.72%, respectively. The ROAE for the six months ended June 30, 2025 and June 30, 2024 was 7.91% and 6.95%, respectively.
Current wording
The ROAA for the nine months ended September 30, 2025 and 2024 was 0.91% and 0.73%, respectively. The ROAE for the nine months ended September 30, 2025 and 2024 was 8.05% and 6.97%, respectively.
Previous wording
The following table presents the average balance for each principal balance sheet category, and the amount of interest income or expense associated with that category, as well as corresponding average yields earned and rates paid for the six months ended June 30, 2025 and June 30, 2024.
Current wording
The following table presents the average balance for each principal balance sheet category, and the amount of interest income or expense associated with that category, as well as corresponding average yields earned and rates paid for the nine months ended September 30, 2025 and 2024.
Previous wording
Net interest income increased $5.2 million or 21.7% on a fully tax-equivalent basis for the six months ended June 30, 2025, compared to the six months ended June 30, 2024. The increase in fully tax-equivalent net interest income was driven by the decrease in the cost of interest-bearing liabilities combined with the increases in yields on interest-earning assets.
Current wording
Net interest income increased $7.6 million or 20.6% on a fully tax-equivalent basis for the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024. The increase in fully tax-equivalent net interest income was driven by the decrease in the cost of interest-bearing deposits combined with the increases in average balances and yields of the loan portfolio.
Previous wording
On a fully tax-equivalent basis, the net interest margin was 2.64% for the six months ended June 30, 2025, compared to 2.15% for the six months ended June 30, 2024. The 49 basis points increase in net interest margin was due to a combination of a 38 basis points decrease in the cost of interest-bearing liabilities and a 17 basis points increase in yields in interest-earning assets. The cost of interest-bearing liabilities was 3.43% for the six months ended June 30, 2025 compared to 3.81% for the six months ended June 30, 2024. Rates declined across all deposit categories, most notably in time deposits, money market accounts and NOW deposit accounts, which declined 18 basis points, 49 basis points and 42 basis points, respectively. Total cost of borrowings declined from 4.99% in the prior year period to 4.55% in the current year period, mainly as a result of the payoff of higher cost Bank Term Funding Program borrowings in September 2024, which were partially replaced with lower cost FHLB advances.
Current wording
The cost of interest-bearing liabilities was 3.41% for the nine months ended September 30, 2025 compared to 3.83% for the nine months ended September 30, 2024. Rates declined across all deposit categories, most notably in time deposits, money market accounts and NOW deposit accounts, which declined 26 basis points, 50 basis points and 47 basis points, respectively. Total cost of borrowings declined from 4.96% in the prior year period to 4.54% in the current year period, mainly as a result of the payoff of higher cost Bank Term Funding Program borrowings in September 2024, which were partially refinanced with lower cost FHLB advances. Average interest-bearing liabilities declined $27.5 million during the current period as compared to the prior year period, primarily driven by lower average balances of borrowings.
Previous wording
The loan portfolio’s yield for the six months ended June 30, 2025 was 5.41% compared to 5.19% for the six months ended June 30, 2024. The increase of 22 basis points was primarily attributable to an increase in yield on the Company’s variable rate loans as a result of an increase in interest rates subsequent to June 30, 2024 coupled with a higher weighted average yield on loans originated since the first half of 2024.
Current wording
The loan portfolio’s yield for the nine months ended September 30, 2025 was 5.42% compared to 5.24% for the nine months ended September 30, 2024. The increase of 18 basis points was primarily attributable to an increase in yield on the Company’s variable rate loans as a result of an increase in interest rates subsequent to September 30, 2024 coupled with a higher weighted average yield on loans originated since the first nine months of 2024. Average loans increased $61.4 million between the nine months ended September 30, 2025 and 2024, which was primarily attributable to origination volume in the investor real estate, construction and development, and residential mortgage loan portfolios subsequent to September 30, 2024.
Previous wording
The yield on interest-bearing deposits due from banks for the six months ended June 30, 2025 was 4.48% compared to 5.53% for the six months ended June 30, 2024. The decrease of 105 basis points was directly attributable to three fed funds rate cuts totaling 100 basis points, which occurred during the second half of 2024.
Current wording
The yield on interest-bearing deposits due from banks for the nine months ended September 30, 2025 was 4.46% compared to 5.50% for the nine months ended September 30, 2024. The decrease of 104 basis points was due to three fed funds rate cuts totaling 75 basis points, which occurred after September 30, 2024.
Previous wording
Interest income increased by $1.4 million or 2.7% to $55.2 million on a fully tax-equivalent basis for the six months ended June 30, 2025 compared to $53.8 million for the six months ended June 30, 2024, driven by both an increase in rates and volume on interest-earning assets. The increase in rate and volume on interest-earning assets was primarily attributable to the Company’s loan portfolio.
Current wording
Interest income increased by $1.9 million or 2.4% to $84.2 million on a fully tax-equivalent basis for the nine months ended September 30, 2025 compared to $82.3 million for the nine months ended September 30, 2024, driven by both an increase in rates and volume on interest-earning assets, primarily attributable to the Company’s loan portfolio.
Previous wording
Fully tax-equivalent interest income on loans increased by approximately $3.0 million as a result of an increase in rate and volume. Average loans increased $45.0 million between the six months ended June 30, 2025 and June 30, 2024, which was primarily attributable to origination volume in the investor real estate, construction and development, and residential mortgage loan portfolios subsequent to June 30, 2024.
Current wording
Fully tax-equivalent interest income on loans increased by approximately $4.9 million or 6.9% as a result of increases in rates and volume. Average loans increased $61.4 million between the nine months ended September 30, 2025 and 2024, which was primarily attributable to origination volume in the investor real estate, construction and development, and residential mortgage loan portfolios subsequent to September 30, 2024.
Previous wording
Fully tax-equivalent interest income on investment securities decreased by approximately $283 thousand, primarily as a result of a decrease in volume. Average investment securities decreased approximately $33.0 million between the six months ended June 30, 2025 and June 30, 2024, primarily due to maturities and the amortization of the portfolio.
Current wording
Fully tax-equivalent interest income on investment securities decreased by approximately $356 thousand or 9.1%, as a result of a decrease in volume. Average investment securities decreased approximately $31.2 million between the nine months ended September 30, 2025 and 2024, primarily due to maturities and the amortization of the portfolio.
Previous wording
Interest income on interest-bearing deposits in other banks decreased by $1.3 million as a result of lower rate and decline in volume. The lower yield was directly attributable to three fed funds rate cuts totaling 100 basis points since June 30, 2024. Average interest-bearing deposits in other banks decreased approximately $24.3 million between the six months ended June 30, 2025 and June 30, 2024, mainly due to funding of new loan originations and lower average balance of borrowings.
Current wording
Interest income on interest-bearing deposits in other banks decreased by $2.6 million or 37.6% as a result of lower yield and a decline in volume. The lower yield was directly related to three fed funds rate cuts totaling 75 basis points since September 30, 2024. Average interest-bearing deposits in other banks decreased approximately $39.0 million between the nine months ended September 30, 2025 and 2024, mainly due to funding of new loan originations and lower average balance of borrowings.
Previous wording
Interest expense decreased by $3.8 million to $26.1 million for the six months ended June 30, 2025 compared to $29.9 million for the six months ended June 30, 2024, primarily due to a decrease in rates on deposits and borrowings. The decrease in rates on deposits was mainly a result of the repricing of the Company’s time deposits maturing subsequent to June 30, 2024 as a result of lower benchmark interest rates. The decrease in rate on borrowings was primarily a result of the Company’s payoff of higher cost Federal Reserve Bank’s Bank Term Funding Program borrowings in September 2024, which were partially replaced with lower cost FHLB advances.
Current wording
Interest expense decreased by $5.7 million to $39.5 million for the nine months ended September 30, 2025 compared to $45.2 million for the nine months ended September 30, 2024, primarily due to a decrease in rates on deposits and a decrease in volume of borrowings. The decrease in rates on deposits was mainly a result of the repricing of the Company’s time deposits maturing subsequent to September 30, 2024 as a result of lower benchmark interest rates. The decrease in volume of borrowings was primarily a result of the Company’s payoff of higher cost Federal Reserve Bank’s Bank Term Funding Program borrowings in September 2024, which were partially refinanced with lower cost FHLB advances.
Previous wording
The Company recorded a $707 thousand provision for credit losses for the six months ended June 30, 2025 compared to a $1.1 million recovery of provision for credit losses for the six months ended June 30, 2024. The provision for credit losses for the six months ended June 30, 2025 that is directly attributable to the funded and unfunded loan portfolios was $583 thousand and $124 thousand, respectively.
Current wording
The Company recorded a $1.1 million provision for credit losses for the nine months ended September 30, 2025 compared to a $0.7 million recovery of provision for credit losses for the nine months ended September 30, 2024. The provision for credit losses for the nine months ended September 30, 2025 that is directly attributable to the funded and unfunded loan portfolios was $997 thousand and $67 thousand, respectively.
Previous wording
The provision for credit losses during the six months ended June 30, 2025 was primarily a result of changes in the composition and volume of the loan portfolio, updated economic forecasts used in the quantitative portion of the model and an assessment of management’s considerations of qualitative factors. See “Asset Quality” below for additional information on the credit quality of the loan portfolio.
Current wording
The provision for credit losses during the nine months ended September 30, 2025 was primarily a result of changes in the composition and growth of the loan portfolio, updated economic forecasts used in the quantitative portion of the model and an assessment of management’s considerations of qualitative factors. See “Asset Quality” below for additional information on the credit quality of the loan portfolio.
Previous wording
Non-interest income decreased $361 thousand during the six months ended June 30, 2025 compared to the same period of 2024. The decrease was primarily driven by a $252 thousand decrease on the recorded gain on sale of the government guaranteed portion of the SBA 7(a) loans due to decreased sale activity, a $64 thousand decrease in swap fee income and a $46 thousand decrease in insurance commissions.
Current wording
Non-interest income decreased $325 thousand during the nine months ended September 30, 2025 compared to the same period of 2024. The decrease was primarily driven by a $306 thousand decrease on the recorded gain on sale of the government guaranteed portion of the SBA 7(a) loans due to decreased sale activity along with a $53 thousand decrease in insurance commissions. These decreases were
Previous wording
The following table summarizes non-interest expense for the six months ended June 30, 2025 and June 30, 2024.
Current wording
The following table summarizes non-interest expense for the nine months ended September 30, 2025 and 2024.
Previous wording
Non-interest expense increased $728 thousand or 4.6% during the six months ended June 30, 2025 compared to the same period in 2024. The increase was primarily due to a 592 thousand increase in salaries and employee benefits, as a result of changes in staffing over the preceding period. State franchise taxes increased by $94 thousand due to a higher assessment base, mainly a result of the growth of the Company’s stockholder’s equity during the period. The $111 thousand increase in data processing was primarily due to contractual increases and volume based activity. These increases were partially offset by a decrease in the Company’s occupancy expense, which declined by $85 thousand during the period due to relocating a branch to a less expensive, more favorable location.
Current wording
Non-interest expense increased $1.7 million or 7.3% during the nine months ended September 30, 2025 compared to the same period in 2024. The increase was primarily due to a $1.4 million increase in salaries and employee benefits, as a result of the Company hiring six business development officers in the preceding twelve months and an increase in incentive compensation tied to performance. The hiring of additional business development officers is an investment in the Bank’s future growth. As in the past, management expects these staffing additions will lead to subsequent increases in revenues. Incentive compensation expense accruals can fluctuate significantly from period to period, based upon the Company’s financial performance and condition measured against, among other evaluation criteria, our strategic plan and budget. State franchise taxes increased by $161 thousand due to a higher assessment base, mainly a result of the growth of the Company’s shareholder’s equity during the period. The $139 thousand increase in data processing was primarily due to contractual increases and volume-based activity. These increases were partially offset by a decrease in the Company’s occupancy expense, which declined by $125 thousand during the period due to the negotiation of more favorable rents on three branch locations.
Previous wording
Income tax expense increased $530 thousand or 22.8% to $2.9 million for the six months ended June 30, 2025 compared to $2.3 million for the six months ended June 30, 2024. Our effective tax rate for the six months ended June 30, 2025 stayed relatively unchanged at 22.4% compared to 22.3% for the same period ended June 30, 2024.
Current wording
Income tax expense increased $882 thousand or 25.7% to $4.3 million for the nine months ended September 30, 2025 compared to $3.4 million for the nine months ended September 30, 2024. Our effective tax rate for the nine months ended September 30, 2025 increased to 22.0% compared to 21.7% for the same period ended September 30, 2024.
Previous wording
The Company reported net income of $5.1 million for the three months ended June 30, 2025, an increase of $1.2 million or 30.7% when compared to $3.9 million for the three months ended June 30, 2024. Pre-tax, pre-provision earnings (Non-GAAP) was $7.1 million for the three months ended June 30, 2025, representing an increase of $2.4 million or 50.6% when compared to the three months ended June 30, 2024, predominantly driven by the growth in net interest income. Diluted earnings per common share were $0.36 for the three months ended June 30, 2025, compared to diluted earnings per common share of $0.27 for the three months ended June 30, 2024, an increase of 33.3%.
Current wording
The Company reported net income of $5.4 million for the three months ended September 30, 2025, an increase of $1.2 million or 27.6% when compared to $4.2 million for the three months ended September 30, 2024. Diluted earnings per common share were $0.38 for the three months ended September 30, 2025, compared to diluted earnings per common share of $0.30 for the three months ended September 30, 2024, an increase of 26.7%.
Previous wording
Net interest income for the three months ended June 30, 2025 increased $2.8 million or 23.5% to $14.9 million compared to $12.1 million for the three months ended June 30, 2024, driven primarily by the lower cost of interest-bearing liabilities coupled with higher yields on interest-earning assets. During the same period, interest income increased $1.1 million or 3.9%, driven by higher interest income on loans, while interest expense declined by $1.8 million or 12.2%, predominantly due to lower interest expense on time deposits and money market accounts. The annualized net interest margin for the second quarter of 2025 was 2.69% as compared to 2.19% for the same period in 2024. The annualized tax-equivalent net interest margin (Non-GAAP) for the second quarter of 2025 was 2.70% as compared to 2.19% for the same period in 2024.
Current wording
Net interest income for the three months ended September 30, 2025 increased $2.4 million or 18.6% to $15.6 million compared to $13.2 million for the three months ended September 30, 2024, driven primarily by the lower cost of interest-bearing deposits coupled with higher average balances and yields of loans. During the same period, interest income increased $0.5 million or 1.8%, driven by higher interest income on loans, while interest expense declined by $1.9 million or 12.6%, predominantly due to lower interest expense on time deposits, money market accounts, and borrowings. The annualized net interest margin for the three months ended September 30, 2025 was 2.72% as compared to 2.30% for the same period in 2024. The annualized tax-equivalent net interest margin (Non-GAAP) for the three months ended September 30, 2025 was 2.73% as compared to 2.30% for the same period in 2024.
Previous wording
The Company recorded a $537 thousand provision for credit losses for the three months ended June 30, 2025 compared to a recovery of provision for credit losses of $292 thousand for the three months ended June 30, 2024. Additional discussion of the provision for credit losses is included below under the headingProvision for Credit Losses.
Current wording
The Company recorded a $356 thousand provision for credit losses for the three months ended September 30, 2025 compared to a provision for credit losses of $400 thousand for the three months ended September 30, 2024. Additional discussion of the provision for credit losses is included below under the headingProvision for Credit Losses.
Previous wording
Non-interest income decreased $48 thousand during the three months ended June 30, 2025 compared to the three months ended June 30, 2024. This decrease was primarily attributable to a $155 thousand reduction in gains recorded on sales of the guaranteed portions of SBA 7(a) loans due to lower sale activity, partially offset by favorable variances associated with mark-to-market adjustments on the Company’s non-qualified deferred compensation plan totaling $147 thousand over the same period.
Current wording
Non-interest income increased $36 thousand during the three months ended September 30, 2025 compared to the three months ended September 30, 2024. This increase was primarily attributable to a $101 thousand increase in customer swap fee income, partially offset by a $54 thousand reduction in gains recorded on sales of the guaranteed portions of SBA 7(a) loans due to lower sale activity.
Previous wording
The ROAA for the three months ended June 30, 2025 and June 30, 2024 was 0.91% and 0.70%, respectively. The ROAE for the three months ended June 30, 2025 and June 30, 2024 was 8.06% and 6.68%, respectively.
Current wording
The ROAA for the three months ended September 30, 2025 and September 30, 2024 was 0.94% and 0.73%, respectively. The ROAE for the three months ended September 30, 2025 and September 30, 2024 was 8.31% and 7.00%, respectively.
Previous wording
Tax-equivalent net interest income increased $2.8 million or 23.5% for the three months ended June 30, 2025, compared to the three months ended June 30, 2024, driven primarily by the increase in loan yields and lower rates on interest-bearing deposits and borrowings, reduction in the average balance of time deposits and borrowings, and the increase in the average balance of loans.
Current wording
Tax-equivalent net interest income increased $2.4 million or 18.6% for the three months ended September 30, 2025, compared to the three months ended September 30, 2024, driven primarily by the lower rates on interest-bearing deposits and an increase in loan yields coupled with the increase in the average balance of loans and the reduction in the average balance of borrowings.
Previous wording
On a fully tax-equivalent basis, the net interest margin was 2.70% for the three months ended June 30, 2025, compared to 2.19% for the three months ended June 30, 2024. The 51 basis points increase in net interest margin was primarily due to an 18 basis points increase in yields on the Company’s interest-earning assets and a 41 basis points reduction in rates on interest-bearing deposits, in addition to a reduction of volume of time deposits.
Current wording
On a fully tax-equivalent basis, the net interest margin was 2.73% for the three months ended September 30, 2025, compared to 2.30% for the three months ended September 30, 2024. The 43 basis points increase in net interest margin was primarily due to a 49 basis points reduction in rates on interest-bearing deposits and an 11 basis points increase in yields on the Company’s loans. In addition, average loans increased $93.8 million between the three months ended September 30, 2025 and the three months ended September 30, 2024, which was primarily attributable to origination volume in the investor real estate, construction and development, and residential mortgage loan portfolios subsequent to September 30, 2024.
Previous wording
The loan portfolio’s yield for the three months ended June 30, 2025 was 5.42% compared to 5.20% for the three months ended June 30, 2024. The increase of 22 basis points was primarily attributable to an increase in yield on the Company’s commercial real estate portfolio.
Current wording
The loan portfolio’s yield for the three months ended September 30, 2025 was 5.44% compared to 5.33% for the three months ended September 30, 2024. The increase of 11 basis points was primarily attributable to increase in yields on the Company’s commercial real estate and residential mortgage portfolios along with higher average loan balances.
Previous wording
The yield on interest-bearing deposits due from banks for the three months ended June 30, 2025 was 4.48% compared to 5.53% for the three months ended June 30, 2024. The decrease of 105 basis points was directly attributable to three fed funds rate cuts totaling 100 basis points over the preceding twelve months.
Current wording
The yield on interest-bearing deposits due from banks for the three months ended September 30, 2025 was 4.44% compared to 5.46% for the three months ended September 30, 2024. The decrease of 102 basis points was directly attributable to three fed funds rate cuts totaling 75 basis points over the preceding twelve months.
Previous wording
The cost of interest-bearing liabilities was 3.38% for the three months ended June 30, 2025 compared to 3.81% for the three months ended June 30, 2024. Rates declined across all deposit categories, predominantly within time deposits, money market accounts and NOW accounts, which declined 27 basis points, 51 basis points and 43 basis points, respectively. Total cost of borrowings declined from 4.98% for the prior year quarter to 4.53% in the most recent quarter, mainly as a result of the payoff of higher cost Bank Term Funding Program borrowings in September 2024, which were partially replaced with lower cost FHLB advances.
Current wording
The cost of interest-bearing liabilities was 3.37% for the three months ended September 30, 2025 compared to 3.86% for the three months ended September 30, 2024. Rates declined across all deposit categories, predominantly within time deposits, money market accounts and NOW accounts, which declined 41 basis points, 52 basis points and 59 basis points, respectively. Total cost of borrowings declined from 4.88% for the prior year quarter to 4.52% in the most recent quarter, mainly as a result of the payoff of higher cost Bank Term Funding Program borrowings in September 2024, which were partially refinanced with lower cost FHLB advances.
Previous wording
Fully tax-equivalent interest income on loans increased by approximately $1.9 million as a result of volume and an increase in rates. Average loans increased $57.6 million between the three months ended June 30, 2025 and the three months ended June 30, 2024, which was primarily attributable to origination volume in the investor real estate and residential mortgage loan portfolios subsequent to June 30, 2024.
Current wording
Fully tax-equivalent interest income on loans increased by $1.9 million or 7.8% as a result of volume and rates increases. Average loans increased $93.8 million between the three months ended September 30, 2025 and the three months ended September 30, 2024, which was primarily attributable to origination volume in the investor real estate, construction and development, and residential mortgage loan portfolios subsequent to September 30, 2024.
Previous wording
Fully tax-equivalent interest income on investment securities decreased by approximately $86 thousand primarily as a result of a decrease in volume. Average investment securities decreased approximately $26.8 million between the three months ended June 30, 2025 and June 30, 2024 primarily due to maturities and amortization.
Current wording
Fully tax-equivalent interest income on investment securities decreased by $73 thousand or 5.9% primarily as a result of a decrease in volume. Average investment securities decreased $27.6 million between the three months ended September 30, 2025 and September 30, 2024 mainly due to maturities and amortization.
Previous wording
Interest income on interest-bearing deposits in other banks decreased by $722 thousand primarily as a result of a decrease in rates, coupled with a decrease in volume. Average interest-bearing deposits in other banks decreased approximately $28.7 million between the three months ended June 30, 2025 and June 30, 2024.
Current wording
Interest income on interest-bearing deposits in other banks decreased by $1.3 million as a result of decreases in rates and volume. Average interest-bearing deposits in other banks decreased $68.3 million between the three months ended September 30, 2025 and September 30, 2024.
Previous wording
Interest expense decreased by $1.8 million to $12.9 million for the three months ended June 30, 2025 compared to $14.7 million for the three months ended June 30, 2024, primarily due to a decrease in rates on deposits and decrease in volume on borrowings. The decrease in rates on deposits was primarily a result of the repricing of the Company’s deposits accounts in conjunction with the decrease in benchmark interest rates that took place starting in September of 2024.
Current wording
Interest expense decreased by $1.9 million to $13.3 million for the three months ended September 30, 2025 compared to $15.3 million for the three months ended September 30, 2024, primarily due to a decrease in rates on deposits and, to a lesser extent, the decrease in volume of borrowings. The decrease in rates on deposits was mainly a result of the repricing of the Company’s deposit accounts in conjunction with the decrease in benchmark interest rates that took place starting in September of 2024.
Previous wording
The Company recorded a $537 thousand provision for credit losses for the second quarter of 2025 compared to a recovery of provision for credit losses of $292 thousand for the second quarter of 2024. The provision for credit losses for the second quarter of 2025 that is directly attributable to the funded and unfunded loan portfolios was $472 thousand and $65 thousand, respectively.
Current wording
The Company recorded a $356 thousand provision for credit losses for the three months ended September 30, 2025 compared to a provision for credit losses of $400 thousand for the three months ended September 30, 2024. The provision for credit losses for the three months ended September 30, 2025 that is directly attributable to the funded and unfunded loan portfolios was $415 thousand and a recovery of $59 thousand, respectively.
Showing the first 40 of 65 pairs. Open the source sections for the rest.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
On a fully tax-equivalent basis, the net interest margin was 2.67% for the nine months ended September 30, 2025, compared to 2.20% for the nine months ended September 30, 2024. The 47 basis points increase in net interest margin was due to a combination of a 42 basis points decrease in the cost of interest-bearing liabilities and a 15 basis points increase in yields in interest-earning assets coupled with higher average loan balances and lower average borrowing balances.