2021 ANNUAL REPORT

THE POWER OF PARTNERSHIP



Letter to Shareholders

The power of partnership has proven to be both a driver for growth and a core tenet of the Company as we reflect on the past two years of constant change and rapidly shifting narratives. Amidst both the daily and global disruption that has defined our realities, change has shown us that the value of community has remained essential.

While recent events found many feeling isolated, the Company sought to forge relationships with business customers, fintech solution providers, and local organizations, with the goal of bringing our community together in pursuit of a brighter future. Whether the Company was introducing customers to one another to solve business needs, or establishing ties to new organizations to expand opportunities, the underlying goal has always been to strengthen the communities we serve.

Our customer partners are experts and entrepreneurs in a variety of fields — including our industry specialties: nonprofits & associations, health services, professional services, title & escrow services, property management, government contractor lending, private & charter schools, and commercial real estate. As a commercial-focused community bank, our team works in the same cities and lives in the same towns and neighborhoods as our clients. We understand the opportunities and benefits of the DC Metro market, staying actively involved in the area, and when our partners come to us, we can confidently support their financial goals as we work together and move forward as one.

Beyond the creative financing options and market-leading products, the Company has remained committed to supporting customers with expansion plans or in need of financial assistance through the Paycheck Protection Program (PPP), with our local decision-makers promptly available to respond. This, in tandem with our knowledgeable and dedicated team, has fueled the Company’s growth in achieving $2.15 billion in assets as of December 31, 2021.

These strategic partnerships, whether they be with a customer, a financial technology, or a community organization, are the driving force for John Marshall Bancorp, Inc.’s continued success. In my 40 years of experience in the banking industry, I have had the chance to witness, firsthand, the beneficial effect that partnerships bring and I am proud to work with such a committed team who understand and cultivate such relationships.

The Power of Performance — Record Financials

Our aforementioned achievement of $2.15 billion in assets, begins an impressive list of record-breaking performance for our shareholders, in a year of uncertainty with the need to constantly adapt. Our growth remains strong; a testament to the unrelenting drive and power of our team and our partners. With that power comes performance; in 2021 the Company reached many financial milestones including:

  1. 1.Our Return on Average Assets (ROAA) was 1.25% and Return on Average Equity (ROAE) was 12.90%.
  2. 2.Our diluted Earnings per Share (EPS) increased by 35.6% from 2020, the previous record year, to $1.83.
  3. 3.Excluding non-recurring gains from securities sales, noninterest income increased 31.1%.
  4. 4.The Company spent a record low of $0.477 per $1.00 of revenue in 2021.
  5. 5.Total assets increased by 14.0% or $263.8 million to $2.15 billion.
  6. 6.Our core loans, excluding all PPP loans, grew $150.7 million or 10.4%.
  7. 7.Total deposits grew by $241.4 million or 14.7%.
  8. 8.Non-interest-bearing demand deposits grew by $126.3 million or 34.8%.
  9. 9.The Company did not need to issue capital in 2021 as record profits increased regulatory capital ratios. John Marshall Bancorp, Inc. (JMSB) remains well-capitalized, enabling it to pursue additional growth.
  10. 10.For the 9th consecutive quarter, the Company had no non-performing loans, no loans 30 days or more past due, and no other real estate-owned assets.

The Power of Presence — Community Involvement

As a commercial community bank, we have the opportunity to support businesses and organizations by maintaining an active presence in our communities through our local partnerships. This emphasis comes in many ways including:

  1. 1.Continuing to support our business clients through our participation in the Paycheck Protection Program (PPP), which saw us efficiently process 675 loans equaling $148.1 million in 2020. In 2021, the Company processed an additional 409 PPP loans totaling $74.9 million.
  2. 2.Helping local residents in our markets realize homeownership by processing over 147 residential mortgages totaling $138.4 million through our Consumer Lending division.
  3. 3.Spotlighting over 16 different client relationships in video testimonials in the industry segments we serve through our social media efforts. This allowed our larger audience of both entrepreneurs and consumers to witness the benefits of partnering with JMB.
  4. 4.Relocating our Prince William County Office to a more central location with greater visibility will allow us to further expand our presence in that community.

The Power of Progress — Expansion & Development

Beyond investing in our communities, we also dedicate resources to expanding and developing our own infrastructure so we can better carry out our mission. Our operational enhancements have included:

  1. 1.Expanding our fintech lending solutions to further streamline business and banking processes resulting in achieving greater efficiency. In 2021 we partnered with Reliant Business Valuation (SBA 7(a) loan processing and PPP forgiveness). The partnership rounds out our existing fintech solutions including Built (construction loan disbursement management), nCino (loan pipeline management), and Abrigo (loan loss allowance, CECL preparation, and CRE stress testing).
  2. 2.Initiating the registration of our common stock with the Securities and Exchange Commission and subject to approval, the Company intends to list its shares on the Nasdaq Capital Market®. We believe this should increase trading volume or liquidity in JMSB stock.
  3. 3.Developing new IT strategic capabilities which will provide increased technical performance, decreased capital expenditures, increased security, scalability, flexibility, and increased support for disaster recovery and business continuity. The focus on safe and sound IT evolution will enable the Company to more efficiently adapt to future technologies.

The Power of People — Company Culture

Creating an environment that enables our team members to work to the best of their abilities always remains a top priority. In 2021, we continued the initiatives started in 2020, by offering our valued team members greater flexibility with hybrid work-from-home options. Consistently adjusting to new regulations and changes resulting from the pandemic allowed us to support the needs of our team members with a healthy blend of remote and onsite work schedules.

Additionally, the Company continues to advance diversity, equity, inclusion, and opportunity. This year we refined our recruiting practices to focus on candidate qualifications while eliminating potential biases, as well as participating in recruitment diversity education. Moving into the future, we continue to focus on recommendations for equitable, professional growth and development.

Our team also takes an active role in the communities we serve. Many of our team members hold leadership positions in local organizations and participate in various community events. We live in these communities and we bolster them by committing our time, knowledge, and financial resources.

The Power of Possibility — Moving Forward

This year has undeniably shown us the value and power of our partnerships. Our team works tirelessly to secure customer and partner relations with individuals and businesses throughout the Company’s footprint. These relationships are a key factor in our record-breaking success over the past two years, despite global turmoil, economic uncertainty, and the ever-present pandemic. The Company’s focus on generating long-term, profitable growth for our shareholders is made possible through our fiscal discipline and our drive to power forward and achieve progress.

Jonathan C. Kinney

Chairman of the Board

Christopher W. Bergstrom

President & Chief Executive Officer


THE POWER OF PERFORMANCE - RECORD FINANCIALS






EXECUTIVE TEAM

Christopher W. Bergstrom
President & Chief Executive Officer


William J. Ridenour
Senior Executive Vice President & Chief Banking Officer

Carl E. Dodson
Senior Executive Vice President & Chief Operating Officer & Risk Officer

Kent D. Carstater
Executive Vice President, Chief Financial Officer

Andrew J. Peden
Executive Vice President, Chief Lending Officer

Jason R. McDonough
Executive Vice President, Director of Commercial Real Estate

Sheila Yosufy
Executive Vice President, Director of Sales

Kelly Bell
Executive Vice President, Director of Retail Banking

Linda M. Fourney
Executive Vice President, HR Director

Ted M. Johnson
Alexandria Regional Executive

Christopher J. Lipscomb
Arlington Regional Executive

James N. Estep
Fairfax/Reston Regional Executive

Todd W. Hewitt
Prince William Regional Executive


BOARD OF DIRECTORS

Jonathan C. Kinney
Chairman of the Board

Christopher W. Bergstrom
President & Chief Executive Officer


Philip W. Allin
Executive Vice President, Interiors by Guernsey

Philip R. Chase
Owner and Principal, Synergis LLC

Jean M. Edelman
Co-Founder, Edelman Financial Services, LLC

Michael T. Foster
President, MTFA Architecture, Inc.

Mike Garcia
President, Mike Garcia Construction Inc.

Subhash K. Garg
Co-Founder and Principal, Wiener & Garg LLC

Ronald J. Gordon
Founder & CEO, ZGS Communications

O. Leland Mahan
Senior Partner, Hall, Monahan, Engle, Mahan & Mitchell

Lim Nguonly
Founder & President, Princess Jewelers



THE POWER OF PARTNERSHIPS - CLIENT TESTIMONIALS

Association Partners

Veterinary Partners

Small Business Partners

GovCon Partners

Health Services Partners

Professional Services Partners

THE POWER OF PRESENCE

Reston

1943 Isaac Newton Sq. E, Ste.150, Reston, VA 20190

Arlington

2300 Wilson Blvd., Ste.120, Arlington, VA 22201

Alexandria

640 Franklin St., Alexandria, VA 22314

Leesburg

842 South King St., Leesburg, VA 20175

Rockville

11 N. Washington St., Ste. 100, Rockville, MD 20850

Tysons

8229 Boone Blvd., Ste.102, Tysons, VA 22182

Washington, DC

1401 H St., NW, Ste. 702, Washington, DC 20005

Woodbridge

12701 Marblestone Dr., Ste. 150, Woodbridge, VA 22192


Independent Accountants: Yount, Hyde & Barbour, P.C. - Winchester, Virginia