Letter to Shareholders

Over 6.3 million people in the Washington DC Metro area are united in their need for strong connections to pursue their daily life, reliant on both the digital infrastructure and human social networks to maintain that linkage. As a community bank that calls this center of technology and business home, John Marshall Bancorp, Inc. has made establishing strong connections for our community, customers, shareholders, and team members, a key principle in how we operate.

Unified in purpose to delivering exceptional value to all of our constituents, the Company demonstrated record-breaking performance to make for a remarkable year in which we grew to $2.35 billion in assets as of December 31, 2022: a testament to our commitment to growth and progress for ourselves, our partners, and our investors.

Throughout 2022, the Company built new bridges and strengthened existing relationships with business and personal customers, local organizations, and fintech providers, as a bank that supports our customers and their success. The process of extending the Company’s reach included achieving such notable milestones as registering our shares with the Securities and Exchange Commission (SEC), listing our stock on Nasdaq, gaining inclusion in the Russell 2000 Index, and broadening our customer service and fee income capabilities by implementing an interest rate swap program all while maintaining our outstanding asset quality. We also enhanced and expanded our Small Business Administration (SBA) lending platform to better accommodate the needs of our small business customers, who make up a vital portion of the market we serve. Additionally, our team members continue to use their expertise to forge and reinforce our relationships throughout our industry verticals of nonprofits & associations, health services, professional services, title & escrow services, property management, government contractor lending, private & charter schools, and commercial real estate.

The continued success that John Marshall Bancorp, Inc. has sustained for years comes, mainly, as a direct result of our focus on establishing strong connections with our partners, team members, and the communities we serve. Through these bonds, we have accomplished substantial strategic goals and we are proud to work with a team that dedicates itself to furthering our growth and success.

The Gateway to Growth ― Financial Success

Driven by strong execution, our financial performance in 2022 was directly correlated to the efforts of a skillful team, our shareholders, and our customers. This headlines our financial results for the year as we continue to increase our footprint on the DC Metro market with the following notable achievements:

• Return on Average Assets (ROAA) was 1.40% and our Return on Average Equity (ROAE) was 15.18%.
• Record diluted earnings per share of $2.25, a 22.9% increase from 2021, our previous record year.
• Excluding non-recurring items and the mark-to-market of the non-qualified deferred compensation plan assets, our noninterest income increased 24.6%.
• Total assets grew 9.3% or $199 million to $2.35 billion, total deposits grew 9.9% or $186 million to $2.07 billion, and total loans grew 7.4% or $123 million to $1.79 billion
• Thirteenth Consecutive Quarter of no non-performing loans, no loans 30 or more days past due, and no other real estate-owned.
• Sixteenth consecutive quarter of record earnings.

Connected to the Community

As a local community bank, we link ourselves to the people and institutions around us. We use these connections to power the Company and support the local businesses and leaders that make up our communities. Our team members also devote countless hours to volunteerism, supporting causes with both their time and expertise. Through investments and involvement with our local networks, our accomplishments included:

• Hosting our first customer appreciation event since the pandemic with more than 300 guests, including a focus on prospect attendance.
• Continuing to spotlight client relationships through various mediums including publishing over 19 video testimonials on our social channels.
• Increasing the volume of SBA loans by 75% and the total dollar amount of those loans by 484.6%.
• Increasing the volume of community development loans by 63% and the total dollar amount of those loans by 18%.
• Increasing our Home Pursuit program marketing efforts for first-time homebuyers which also increased the volume of Home Pursuit loans by 325% and the total dollar amount of those loans by 448%.

Tied into Tech

The DC Metro market is a financial and technological epicenter. This puts us in a prime position to leverage robust technologies to improve and streamline the banking process for both ourselves and our customers. In 2022, our technological suite saw the following additions and improvements:

• Completing the implementation of Infrastructure as a Service (IAAS) which reduces capital expenditures for technology by adopting a pay-for-usage model. IAAS also allows us to future-proof our networking and enhance security.
• Improving IT governance by forming teams to drive business value and overseeing, analyzing, and sharing information about our key platforms.
• Migrating financial statement spreading functionality from Abrigo to nCino, which allows for better integration into the underwriting process.
• Expanding our presence on CoStar by including our commercial real estate lending information onto their platform to enhance our credit risk management.
• Upgrading our business online banking, and treasury management platform, with enhanced functionality.
• Installing Smart Sign in all banking center locations, which allows customers to electronically sign documents remotely for greater convenience.

Enhanced Value for Investors

Beyond delivering impressive financial performance for our shareholders, the Company sought to increase the visibility and liquidity of its stock by implementing investor-focused strategies including:

• Registering our shares with the SEC and listing our stock on Nasdaq.
• Gaining inclusion in the Russell 2000 Index.
• Appointing a new stock transfer agent to meet growing investor needs.

Attached to Efficiency

Through cost consciousness and innovation, the Company maintained a disciplined approach to operational efficiency. These deliberate and concentrated efforts resulted in:

• Achieving an efficiency ratio of 44.2%, improving upon the previous record of 47.7%.
• Refinancing the Bank’s subordinated debt with a lower interest rate.
• Savings realized on significant contract and lease negotiations.

Engaged with Employees

Our team members play an integral role in the Company’s success by cultivating trusted relationships with local businesses, organizations, and with one another. They exemplify the Company’s Values of HERO (Honesty, Excellence, Responsiveness, and Ownership) in all of their dealings. The Company seeks to attract top talent who share the same values, while also recognizing and investing in existing team members. This year, our employee-focused accomplishments include:

• Forming an employee-led committee, Team HERO, to underscore the Company’s values. Recognition awards and spirit-focused events were established to celebrate the contributions of our team.
• Launching a new Intranet platform, the JMB Universe, to improve the employee experience and make information much more accessible while adding an easy-to-use social aspect.
• Increasing profit share contributions for the fourth consecutive year for all eligible team members.

Embracing Tomorrow’s Opportunities

We want to extend our gratitude to our employees, clients, shareholders, and communities who have all contributed to our successful performance in 2022. In particular, we would like to recognize and extend our appreciation to Jean Edelman and Ronald Gordon. Jean Edelman retired from our board of directors this past year. In addition to her 14 years of service on our board, she cofounded Edelman Financial Services LLC and dedicated herself to the community through various organizations such as the Cloverleaf Equine Center and Rowan University. Ronald Gordon, who passed away in early 2023, served on the board of directors for over 17 years, was the Chairman and CEO of ZGS communications, and the former President of the Telemundo Station Group, which oversaw all local Telemundo stations in the continental United States and Puerto Rico.

Going forward, the Company will focus on continuing to build a digitally enabled, relationship-orientated, bank while consistently pursuing new opportunities that yield value to all of our constituents. We aspire to serve as that connecting flight that takes businesses and individuals to their next financial destination.