Business/Financial Results (Form 8-K)

For Immediate Release

October 28, 2026

3^rd Quarter Net Income Increases 39.5% Versus Year Ago Quarter

Funding, Asset Quality, and Capital Position Company for Anticipated Growth

Reston, VA - John Marshall Bancorp, Inc. (Nasdaq: JMSB) (the "Company"), parent company of John Marshall Bank (the "Bank"), reported net income of $7.5 million for the quarter ended September 30, 2026 compared to $5.4 million for the quarter ended September 30, 2025, an increase of $2.1 million or 39.5%. Diluted earnings per common share were $0.53 for the quarter ended September 30, 2026 compared to $0.38 for the quarter ended September 30, 2025, also an increase of 39.5%. Annualized return on average assets ("ROAA") was 1.23% for the quarter ended September 30, 2026 compared to 0.94% for the quarter ended September 30, 2025. Annualized return on average equity ("ROAE") was 10.78% for the quarter ended September 30, 2026 compared to 8.31% for the quarter ended September 30, 2025.

Selected Highlights

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Chris Bergstrom, President and Chief Executive Officer, commented, "The Company continues to deliver strong, accelerating financial results quarter after quarter. This past quarter marked the ninth consecutive quarter of increased net income and earnings per diluted common share, including a 23% increase in both core net income and core earnings per diluted common share over the second quarter of 2026. Furthermore, we increased our core returns on assets and equity to their highest levels in nearly four years at 1.27% and 11.15%, respectively. As a continued expression of the soundness of our balance sheet and confidence in the outlook for our financial performance, the Board of Directors, once again, declared a quarterly cash dividend of $0.10 per common share. That marks a total of $0.38 per common share throughout 2026, a 27% increase over 2025. Asset quality remains exemplary and the Bank is very well-capitalized. As such, we believe that we are well-positioned to grow the balance sheet, profits and shareholder value.

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Balance Sheet, Liquidity and Credit Quality

The Company carried balance sheet growth momentum into the third quarter of 2026. Total assets were $2.44 billion at September 30, 2026, $2.40 billion at June 30, 2026, and $2.32 billion at September 30, 2025. Total assets increased $34.5 million or 5.7% annualized from June 30, 2026 and $112.3 million or 4.8% from September 30, 2025.

Total loans, net of unearned income, stayed relatively unchanged at September 30, 2026 at $2.01 billion compared to June 30, 2026 and increased $73.0 million or 3.8% from $1.94 billion at September 30, 2025. The increase in loans over the preceding twelve months was primarily attributable to the growth in residential mortgage loans, investor real estate loans and construction & development loans. Refer to the Loan, Deposit and Borrowing Detail table for further information.

The carrying value of the Company's fixed income securities portfolio was $219.2 million at September 30, 2026, $213.7 million at June 30, 2026, and $205.7 million at September 30, 2025. During the most recent quarter, the Company purchased eight fixed income securities, designated as available-for-sale, with a total carrying amount of $18.5 million and a weighted average purchase yield of 4.68%. Fixed income securities which matured during the most recent quarter had an average yield of 2.58%. As of September 30, 2026, 96.0% of our bond portfolio carried the implied guarantee of the United States government or one of its agencies. At September 30, 2026, 75.2% of the fixed income portfolio was invested in amortizing bonds, which provide the Company with a source of steady cash flow. At September 30, 2026, the fixed income portfolio had an estimated weighted average life of 3.9 years. The

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available-for-sale portfolio comprised approximately 63% of the fixed income securities portfolio and had a weighted average life of 3.5 years at September 30, 2026. The held-to-maturity portfolio comprised approximately 37% of the fixed income securities portfolio and had a weighted average life of 4.7 years at September 30, 2026.

The Company did not have an allowance for credit losses on held-to-maturity securities as of September 30, 2026 or December 31, 2025. As of September 30, 2026, 93.0% of our held-to-maturity portfolio carried the implied guarantee of the United States government or one of its agencies.

The Company's balance sheet remains highly liquid. The Company's liquidity position, defined as the sum of cash, unencumbered securities and available secured borrowing capacity, totaled $809.9 million as of September 30, 2026 compared to $827.2 million as of June 30, 2026 and represented 33.2% and 34.4% of total assets, respectively. In addition to available secured borrowing capacity, the Bank had available federal funds lines of $110.0 million at September 30, 2026.

Total deposits increased $71.3 million or 14.2% annualized to $2.06 billion at September 30, 2026 compared to $1.99 billion at June 30, 2026, and increased $95.4 million or 4.8% from $1.97 billion at September 30, 2025. During the most recent quarter, total interest-bearing deposits increased $51.2 million or 13.2% annualized, while total non-interest bearing deposits increased $20.1 million or 17.7% annualized. Detail on the deposit activity can be seen in the Loan, Deposit and Borrowing Detail table. As of September 30, 2026, the Company had $760.5 million of deposits that were not insured or not collateralized compared to $691.5 million and $682.8 million at December 31, 2025 and September 30, 2025, respectively.

Federal Home Loan Bank ("FHLB") advances remained unchanged at $56.0 million as of September 30, 2026 compared to June 30, 2026 and September 30, 2025. As of September 30, 2026, the FHLB advances had a weighted average fixed interest rate of 3.89%. In addition to outstanding FHLB advances, total borrowings as of September 30, 2026 included subordinated debt totaling $24.9 million. During the most recent quarter, the Company fully paid off $40.0 million of federal funds purchased, which were outstanding as of June 30, 2026.

Shareholders' equity increased $17.4 million or 6.7% to $277.1 million at September 30, 2026 compared to $259.7 million at September 30, 2025. Book value per share was $19.64 as of September 30, 2026 compared to $18.27 as of September 30, 2025, an increase of 7.5%. The year-over-year increase in shareholders' equity and book value per share was primarily due to the Company's earnings over the previous twelve months, partially offset by an increase in accumulated other comprehensive loss, resulting from a decrease in the market value of our available-for-sale investment portfolio, along with cash dividends paid and a reduction of additional paid-in capital due to the Company's share repurchases during the period.

The Bank's capital ratios remained well above regulatory thresholds for well-capitalized banks. As of September 30, 2026, the Bank's total risk-based capital ratio was 17.1%, compared to 16.3% and 16.6% at December 31, 2025 and September 30, 2025, respectively.

During the quarter ended September 30, 2026, the Company designated one commercial business SBA 7(a) loan as non-accrual. As of September 30, 2026, the total outstanding principal amount of the loan was $267 thousand and was fully guaranteed by the SBA. The Company charged off the unguaranteed portion of the loan, in the total amount of $89 thousand, during the second quarter of 2026 and submitted a reimbursement claim to the SBA for the guaranteed portion. We expect the SBA to pay its guarantee and resolve our one non-accruing loan. During the three months ended September 30, 2026, the Company recorded no charge-offs and had no other real estate owned assets as of September 30, 2026.

At September 30, 2026, the allowance for loan credit losses was $19.8 million or 0.98% of outstanding loans, net of unearned income, compared to $20.2 million or 1.00% of outstanding loans, net of unearned income, at June 30, 2026. The decrease in the allowance for credit losses during the most recent quarter was predominantly driven by a change in the loan portfolio mix coupled with the improvement in forecasted economic variables used in the quantitative portion of the allowance. Management believes the current allowance for credit losses is appropriate given the composition and performance of the loan portfolio.

At September 30, 2026, the allowance for credit losses on unfunded loan commitments was $1.2 million as compared to $1.1 million at June 30, 2026.

The Company believes its owner occupied and non-owner occupied commercial real estate portfolios continue to be of sound credit quality. The following table demonstrates their strong debt-service-coverage and loan-to-value ratios as of September 30, 2026.

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The following charts provide geographic detail and stated maturity summaries for the Company's non-owner occupied office portfolio as of September 30, 2026:

Income Statement Review

Quarterly Results

The Company reported net income of $7.5 million for the third quarter of 2026, an increase of $2.1 million or 39.5% when compared to $5.4 million for the third quarter of 2025. During the most recent quarter, the Company incurred $332 thousand of merger and acquisition expenses associated with the pending Eagle acquisition. Adjusting for these expenses, core net income (Non-GAAP) was $7.8 million, representing a 44.4% year-over-year increase.

For the three months ended September 30, 2026, net interest income increased $2.2 million or 14.0% to $17.8 million compared to $15.6 million for the three months ended September 30, 2025. During the same period, interest income grew $2.4 million or 8.1%, driven by higher interest income on loans and securities, while interest expense increased $0.2 million or 1.2%, predominantly due to higher interest expense on core time deposits.

The annualized net interest margin for the third quarter of 2026 was 2.91% compared to 2.72% for the same period in 2025. The increase in net interest margin was primarily due to increases in average balances and yields of the loan portfolio coupled with lower rates on interest-bearing deposits.

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The yield on interest-earning assets was 5.13% for the third quarter of 2026 compared to 5.06% for the same period in 2025 primarily due to a ten basis point increase in loan yield coupled with a 50 basis point increase in securities yield. These increases were partially offset by a 69 basis point decrease in yield on interest-bearing deposits in other banks, as a result of a decline in the federal funds rate during the preceding twelve months. Average loans increased by $99.7 million between the three months ended September 30, 2026 and the three months ended September 30, 2025, which was primarily attributable to origination volume in the residential mortgage loans, investor real estate loans and construction & development loans subsequent to September 30, 2025. The cost of interest-bearing liabilities was 3.20% for the third quarter of 2026 compared to 3.37% for the same quarter in the prior year driven by the 18 basis point decline in rates on interest-bearing deposits. Rates declined across all deposit categories, most notably in time deposits, money market accounts and NOW accounts, which declined by 29 basis points, 20 basis points, and nine basis points, respectively.

The Company recorded a $318 thousand recovery of provision for credit losses for the third quarter of 2026 compared to a provision expense of $356 thousand for the third quarter of 2025. Provision for credit losses on funded loans was a recovery of $397 thousand, while provision for credit losses on unfunded loan commitments was an expense of $79 thousand during the three months ended September 30, 2026. The recovery of provision for credit losses on funded loans during the most recent quarter reflected a change in the loan portfolio mix in combination with the improved forecasts of the unemployment rate and gross domestic product as compared to June 30, 2026.

Non-interest income decreased $385 thousand or 59.0% during the third quarter of 2026 compared to the third quarter of 2025. The main drivers of this decrease were a $141 thousand decrease in mark-to-market adjustments on investments related to the Company's non-qualified deferred compensation plan, a $101 thousand decrease in swap fee income, an $82 thousand decrease in the gain on sale of SBA 7(a) loans, and a $58 thousand decrease in bankers' insurance commission due to the sale of our Bearing Insurance investment unit during the second quarter of 2026.

Non-interest expense decreased $355 thousand or 3.9% during the third quarter of 2026 compared to the third quarter of 2025, primarily resulting from a $542 thousand decrease in salaries and employee benefits due to a lower incentive compensation accrual, a decrease in mark-to-market adjustments on the Company's non-qualified deferred compensation plan and higher commercial loan origination costs due to higher loan origination volume since the prior year period. Incentive compensation accruals can fluctuate materially from quarter to quarter, based upon the Company's financial performance and conditions measured against, among other evaluation criteria, our strategic plan and budget. At the end of each year, the ultimate determination of the incentive compensation is approved by the Board of Directors. These decreases were partially offset by the previously mentioned merger and acquisition expenses, incurred during the most recent quarter, related to the pending Eagle acquisition. Core non-interest expense (Non-GAAP) decreased $687 thousand or 7.6% during the three months ended September 30, 2026 compared to the same period in 2025.

For the three months ended September 30, 2026, annualized non-interest expense to average assets was 1.41% compared to 1.57% for the three months ended September 30, 2025. This decrease was due to a decline in non-interest expense in combination with the growth in average assets during the period. Adjusted for merger and acquisition expenses incurred during the most recent quarter, annualized core non-interest expense to average assets (Non-GAAP) was 1.36%.

For the three months ended September 30, 2026, the efficiency ratio declined to 48.1% compared to 55.6% for the three months ended September 30, 2025. The improvement in the efficiency ratio was due to an 11.1% growth in total revenue coupled with a 3.9% decrease in non-interest expense over the period. Adjusted for merger and acquisition expenses incurred during the most recent quarter, core efficiency ratio (Non-GAAP) was 46.2%.

Annualized ROAA for the quarter ended September 30, 2026 was 1.23% and annualized ROAE was 10.78% compared to 0.94% and 8.31%, respectively, for the third quarter of 2025. Adjusted for the merger and acquisition expenses incurred during the most recent quarter, annualized core ROAA (Non-GAAP) and annualized core ROAE (Non-GAAP) were 1.27% and 11.15%, respectively.

Year-to-Date Results

The Company reported net income of $20.7 million for the nine months ended September 30, 2026, an increase of $5.3 million or 34.9% when compared to the same period in 2025. Adjusted for merger and acquisition expenses and

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a gain on sale of the Company's equity investment unit recognized during the period, core net income (Non-GAAP) was $20.3 million, an increase of $4.9 million or 32.3%.

Net interest income for the nine months ended September 30, 2026 increased $7.0 million or 15.7% compared to the same period of 2025. The annualized net interest margin for the nine months ended September 30, 2026 was 2.92% as compared to 2.66% for the same period in the prior year. These increases were driven primarily by the increase in average balances and yields of the loan portfolio in combination with a decrease in rates of interest-bearing deposits.

The yield on interest-earning assets was 5.11% for the nine months ended September 30, 2026 compared to 5.03% for the same period in 2025. The increase in yield on interest-earning assets was primarily due to a nine basis point and a 38 basis point increase in yields on the Company's loans and securities, respectively, as assets repriced at higher prevailing interest rates subsequent to the third quarter of 2025. Average loans increased $105.3 million between the nine months ended September 30, 2026 and 2025. These increases were partially offset by a 73 basis point decrease in yield on interest-bearing deposits in other banks, as a result of a declining federal funds rate. The cost of interest-bearing liabilities was 3.16% for the nine months ended September 30, 2026 compared to 3.41% for the nine months ended September 30, 2025. The decrease in the cost of interest-bearing liabilities was primarily due to a 26 basis point decrease in the cost of interest-bearing deposits, as a result of the repricing of the Company's time deposits coupled with a decrease in rates offered on money market, NOW, and savings deposit accounts since the third quarter of 2025.

The Company recorded a $38 thousand provision recovery for the nine months ended September 30, 2026 compared to a $1.1 million provision for credit losses for the nine months ended September 30, 2025. The recovery of provision for credit losses during the nine months ended September 30, 2026 was primarily a result of changes in the composition of the loan portfolio along with the impact of improving forecasted economic variables.

Non-interest income increased $331 thousand or 19.9% during the nine months ended September 30, 2026 compared to the same period of 2025. The increase was primarily driven by an $835 thousand gain on sale of the Company's Bearing Insurance investment unit during the second quarter of 2026. This increase was partially offset by a $211 thousand decrease in bankers' insurance commission, a $173 thousand decline in the gain on sale of SBA 7(a) loans, a $101 thousand decrease in swap fee income, and a $98 thousand decrease in mark-to-market adjustments on investments related to the Company's non-qualified deferred compensation plan.

Non-interest expense increased $1.5 million or 5.9% during the nine months ended September 30, 2026 compared to the same period in 2025 predominantly due to a $957 thousand or 6.0% increase in salaries and employee benefits, as a result of increases in incentive compensation, the impact of the annual salary merit increase and higher cost of the healthcare insurance benefits. Additionally, the most recent period included merger and acquisition expenses of $332 thousand coupled with a $159 thousand or 2.1% increase in other expenses driven by higher state franchise tax and FDIC insurance, due to an increase in respective assessment bases. Core non-interest expense (Non-GAAP) increased $1.2 million or 4.6% during the nine months ended September 30, 2026 compared to the same period in 2025.

For the nine months ended September 30, 2026, annualized non-interest expense to average assets was 1.53% compared to 1.52% for the nine months ended September 30, 2025. Adjusted for merger and acquisition expenses incurred during the period, annualized core non-interest expense to average assets (Non-GAAP) was 1.51%.

For the nine months ended September 30, 2026, the efficiency ratio declined to 50.5% compared to 55.3% for the nine months ended September 30, 2025. The improvement in the efficiency ratio was due to a 15.9% growth in total revenue, which outpaced a 5.9% growth in non-interest expense over the period. Adjusted for merger and acquisition expenses and a gain on sale of the Company's equity investment unit recognized during the period, core efficiency ratio (Non-GAAP) for the nine months ended September 30, 2026 was 50.7%.

Annualized ROAA for the nine months ended September 30, 2026 was 1.16% and annualized ROAE was 10.11% compared to 0.91% and 8.05%, respectively, for the nine months ended September 30, 2025. Adjusted for the previously mentioned non-recurring items incurred during the period, annualized core ROAA (Non-GAAP) and annualized core ROAE (Non-GAAP) were 1.14% and 9.92%, respectively.

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Explanation of Non-GAAP Financial Measures

This release 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 the Company's period-to-period operating performance. Additionally, the Company believes this information is utilized by regulators and market analysts to evaluate the Company's financial condition and therefore, such information is useful to investors. Non-GAAP measures used in this release consist of the following:

These disclosures should not be viewed as a substitute for, or more important than, financial results in accordance with GAAP, nor are they necessarily comparable to Non-GAAP performance measures which may be presented by other companies. Please refer to the "Reconciliation of Certain Non-GAAP Financial Measures" table for the respective periods for a reconciliation of these Non-GAAP measures to the most directly comparable GAAP measure.

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