Introduction to John Marshall Bank
The John Marshall Bank is a mid-sized bank whose main office is based in the state of Virginia. The bank is primarily engaged in providing 1-4 family residential loans (mortgages) to its customers, but also provides commercial & industrial loans. The bank was founded in the year 2006. John Marshall Bank has been insured by the Federal Deposit Insurance Corporation since 2006 and the independent agency has provided insurance to the bank ever since. Mainly because of its relative size, geographic reach and presence, the bank is considered to be a community bank, instead of a national bank. Based on our estimates, we believe its asset base of $2,093 million ranks it in the 90th percentile of banks in the United States. John Marshall Bank does not currently have any offices located outside of the United States, and functionally is a domestic bank. Within the U.S., the bank currently has 8 offices. Finally, the bank currently has a total employee base of 142 people.
Discussion of the key components of the Bank’s Balance Sheet
The bank currently has total assets of $2,093 million, total net loans to customers of $1,583 million and total deposits outstanding of $1,839 million as of this writing. Domestic deposits currently represent (in terms of total size), 88% of the bank’s total assets, and 100% of the bank’s total deposits outstanding. Within these deposits 56% are insured based on the latest available information. Moving on to the components of the bank’s assets we can see that loans provided to customers represent 77% of the banks total assets. Of this amount, loans related to real estate activities comprised 92% of gross loans outstanding. John Marshall Bank has $320 million of outstanding 1-4 family residential loans (mortgages), which in total represents 20% of its loans outstanding. Loans to individuals and loans to commercial and industrial interests represent 0% and 8% of loans outstanding, respectively.
Contact Information For John Marshall Bank
- Main Office Address: 1943 Isaac Newton Sq. East,, Reston, VA 20190
- Website: https://www.johnmarshallbank.com
- Total Number of Branches: 8
- Total Number of International Branches: None
- Number of Employees: 142
- FDIC Certificate Number: 58243
- FDIC Community Bank: Yes
- FDIC Field Office: Richmond
- Independent or Subsidiary Bank: Independent
- Federal Reserve ID Number: 3419416
- Bank Charter Class: SM
- Primary Regulator: FED
The bank had total assets of $2,093 million based on the latest available information. Its total assets have increased substantially over the past year, with an increase of 12.5%. Moving to the other side of the balance sheet, we see net loans of $1,583 million which compares with $1,518 million in the prior year. Therefore its clear that over the past year the bank’s net loans outstanding has reported an increase of 4.2%. Within the loan portfolio, residential mortgages make up 20% of the outstanding loans of the bank, and over the past year have registered an increase of 21.1%. In addition, the bank provides loans to commercial and industrial businesses, which represents 7.9% of its total lending and stood at $127 million based on the latest available information. Finally, the bank also engages in the provision of auto loans. These are loans provided to customers to help finance vehicle purchases. Auto loans represent 0.0% of the bank’s total lending.
Bank Liquidity and Funding
Liquidity and funding are two important considerations when evaluating a bank. It gives us a sense of how a bank finances its activities and can help both depositors and customers better understand a banks financial positioning. A large and growing deposit base is usually a good sign for a bank’s liquidity and funding. This is because customer deposits are often a cheap source of financing as many of those accounts do not pay interest or much interest. Looking at John Marshall Bank, they have total customer deposits of $1,839 million which over the past year has registered an increase of 13.1%. Furthermore, the bank has a loan to deposit ratio of 86% which is above the national average. Banks in the United States have a loan to deposit ratio of approximately 82%. A lower ratio is better since it means that a bank’s lending activities are more comfortably covered by its deposit base. All of the bank’s deposits are sourced from domestic depositors, which is helpful from a risk assessment standpoint.
Bank Performance and Capital Metrics
Above we have shown a summary of some of the performance metrics for John Marshall Bank compared with the average U.S. bank. Starting with its return on assets, over the past year it has improved. Importantly, on this metric we can also see that the bank is above the average bank. Return on assets tells us how productive a bank is being with its asset base. Moving on to the bank’s return on equity, which tells us how much of a return the bank has generated for its owners, over the past year it has improved. In addition, we can also see that the bank is above the average bank on this metric. The bank’s total leverage ratio has been relatively stable over the past year and is currently approximately inline the national average. Last but certainly not least is the tier 1 capital ratio. This is an important measure of the financial strength of a bank and its balance sheet. John Marshall Bank’s tier 1 capital ratio has been relatively stable over the past year, and is below the average U.S. bank.
Final Thoughts: John Marshall Bank
In conclusion, when we look at all the various factors and data we give John Marshall Bank a 3.3 out of 5.0 rating, which we consider to be above average. There are many factors that go into the calculation of our rating and almost all banks will have both positive and negative contributors. As an example, John Marshall Bank scores well on its cost of funds, which is above the national average. However when we consider the bank’s net interest margin, the bank does not have a good score mainly because it is below the national average which impacts its rating. Finally, please note that the rating information is based on our proprietary scoring system. This system was developed by us and leverages data from a nationwide bank study. Importantly, keep in mind that none of the work presented is intended to be investment advice or advice of any sort and is presented purely for informational purposes.