The Bank Slate


John Marshall Bancorp in Va. sells securities at a loss

John Marshall Bancorp in Reston, Va., has sold nearly $162 million of securities at a loss.

The $2.4 billion-asset company said it sold lower-yielding available-for-sale investment securities on July 17 at a $13.5 million after-tax loss. It also redeemed $21.4 million of bank-owned life insurance (BOLI) assets – incurring an after-tax loss of $1.1 million as part of the process.

John Marshall said the proceeds will be reinvested in higher-yielding assets; it should take less than three years to earn back the after-tax loss.

The restructuring “will benefit our net interest margin and bottom line,” Chris Bergstrom, the company’s president and CEO, said in the release. “In short, we are well-positioned to continue to develop and grow relationships with competitive financial products and services and access to the bank’s decision makers.”

Separately, the company said its second-quarter profit fell by 43% from a year earlier, to $4.5 million. The results included a significant increase in funding costs.

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