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MainStreet Bancshares, Inc., Reports Continued Strong Financial Performance for 2nd Quarter 2023

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MainStreet Bancshares, Inc. reported a net income of $6.9 million for Q2 2023, a 17.1% increase from the same period last year. The company's return on average assets is 1.60%, return on average equity is 14.87%, and net interest margin is 4.45%. The efficiency ratio is 53.48%, and the allowance for credit losses is 1.04%. The liquidity coverage ratio is 124% and the core deposit ratio is 74%. MainStreet Bank's loan book increased to $1.66 billion, up 15.7% from last year. The company continues to focus on maintaining strong underwriting standards and benefiting from federal insurance for deposits.
Positive
  • None.
Negative
  • None.

Net Interest Margin Continues to Outperform

FAIRFAX, Va., July 24, 2023 /PRNewswire/ -- MainStreet Bancshares, Inc. (Nasdaq: MNSB & MNSBP), the holding company for MainStreet Bank, reported net income of $6.9 million for the quarter ended June 30, 2023, in line with expectations. This represents a 17.1% increase from the year-earlier second quarter.

Performance through the first half of 2023 remains very strong (returns are annualized):

Return on average assets:

1.60 %

Return on average equity:

14.87 %

Net interest margin (tax equivalent):

4.45 %

Efficiency ratio:

53.48 %

Allowance for credit losses:

1.04 %

Liquidity coverage ratio:

124 %

Core deposit ratio:

74 %

FDIC insured deposits / total deposits:

76 %

Net charge-offs:

$0

Earnings per common share:

$1.86

Tangible book value per common share:

$22.73

"The MainStreet team has done an extraordinary job of maximizing the Company's financial performance while staying true-to-form with proper risk management practices.  We were well-prepared for a rising rate environment," said Jeff W. Dick, Chairman and CEO of MainStreet Bancshares, Inc. and MainStreet Bank. "And the recent collapse of a few badly managed regional banks shook the industry but ultimately gave us the opportunity to tell our risk management story."

The team has done an extraordinary job of maximizing performance while staying true to proper risk management practices

"Spurred by the FOMC rate increases, the collapse of Silicon Valley Bank also prompted an immediate jump in deposit costs for the industry," Dick explained. "It appears that the FOMC will increase rates an additional 25 basis points when it meets on July 26th, but the industry is sensing a slowdown in future rises thereafter."    

The Company's loan book totaled $1.66 billion at the end of the second quarter, up 15.7% from $1.43 billion one year earlier and up 1.3% from the first quarter.

"We are working hard for our customers and sticking to our strong underwriting standards.  Our asset quality remains pristine," said Abdul Hersiburane, president of MainStreet Bank.  "Our business bankers and lenders are redoubling their efforts to gain deposit share in our market, and we continue to benefit from a flight to quality as discerning depositors seek the security of federal insurance for their operating funds and other large deposits."

ABOUT AVENU™ 

Avenu™ onboarded its first client while designers and engineers completed final sprints to harden our multitenancy and cyber architecture and to accelerate implementation of a debit card for funding.  Avenu™ connects partners and their apps directly and seamlessly to MainStreet Bank's banking core. Avenu™ is expected to accelerate MainStreet Bank's deposit growth to support expanded lending.

Avenu™ — Banking Delivered
Avenu™ is the only embedded banking solution that connects fintechs and their apps directly and seamlessly to a bank — MainStreet Bank. We are not a sponsor bank without our own technology, and we are not a middleware software company (aggregator) without our own bank. We are Avenu™, a leading financial technology company backed by an established community business bank in the heart of Washington, D.C.

Avenu™ — Serving a Community of Innovation
Our clients are fintechs, application developers, money movers, and entrepreneurs. They all have one thing in common: They are innovating how money moves to solve real-world issues and help communities thrive. We are focused on servicing our community and long-term business relationships.

ABOUT MAINSTREET BANK: MainStreet operates six branches in Herndon, Fairfax, McLean, Leesburg, Clarendon, and Washington, D.C. MainStreet Bank has 55,000 free ATMs and a fully integrated online and mobile banking solution. The Bank is not restricted by a conventional branching system, as it can offer business customers the ability to Put Our Bank in Your Office®. With robust and easy-to-use online business banking technology, MainStreet has "put our bank" in thousands of businesses in the metropolitan area.

MainStreet Bank has a robust line of business and professional lending products, including government contracting lines of credit, commercial lines and term loans, residential and commercial construction, and commercial real estate. MainStreet also works with the SBA to offer 7A and 504 lending solutions. From sophisticated cash management to enhanced mobile banking and instant-issue Debit Cards, MainStreet Bank is always looking for ways to improve our customer's experience.

MainStreet Bank was the first community bank in the Washington, D.C., metropolitan area to offer a full online business banking solution. MainStreet Bank was also the first bank headquartered in the Commonwealth of Virginia to offer CDARS – a solution that provides multi-million-dollar FDIC insurance. Further information on the Bank can be obtained by visiting its website at mstreetbank.com.

This release contains forward-looking statements, including our expectations with respect to future events that are subject to various risks and uncertainties. The statements contained in this release that are not historical facts are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Words such as "may," "will," "could," "should," "expect," "plan," "project," "intend," "anticipate," "believe," "estimate," "predict," "potential," "pursuant," "target," "continue," and similar expressions are intended to identify such forward-looking statements. Factors that could cause actual results to differ materially from management's projections, forecasts, estimates and expectations include: fluctuation in market rates of interest and loan and deposit pricing, adverse changes in the overall national economy as well as adverse economic conditions in our specific market areas, future impacts of the novel coronavirus (COVID-19) outbreak, maintenance and development of well-established and valued client relationships and referral source relationships, and acquisition or loss of key production personnel. We caution readers that the list of factors above is not exclusive. The forward-looking statements are made as of the date of this release, and we may not undertake steps to update the forward-looking statements to reflect the impact of any circumstances or events that arise after the date the forward-looking statements are made. In addition, our past results of operations are not necessarily indicative of future performance.

UNAUDITED CONSOLIDATED BALANCE SHEET INFORMATION

(In thousands)




June 30,
2023



March 31,
2023



December
31, 2022



September
30, 2022



June 30,
2022


ASSETS





















Cash and cash equivalents





















Cash and due from banks


$

67,700



$

225,334



$

48,931



$

50,636



$

55,636


Federal funds sold



30,341







81,669




54,098




47,013


Total cash and cash equivalents



98,041




225,334




130,600




104,734




102,649


Investment securities available for sale, at fair value



60,579




63,209




62,631




162,319




143,240


Investment securities held to maturity, at amortized cost, net of allowance for credit losses of $0 for all periods



17,590




17,616




17,642




17,670




17,698


Restricted equity securities, at amortized cost



20,304




22,436




24,325




16,436




16,485


Loans, net of allowance for credit losses of $16,047, $15,435, $14,114, $12,994, and $12,982, respectively



1,637,484




1,617,275




1,579,950




1,448,071




1,416,875


Premises and equipment, net



14,427




14,521




14,709




14,523




14,756


Accrued interest and other receivables



10,256




9,744




9,581




8,273




7,313


Computer software, net of amortization



12,266




10,559




9,149




7,258




4,956


Bank owned life insurance



37,763




37,503




37,249




36,996




36,742


Other assets



40,641




36,811




39,915




43,835




32,665


Total Assets


$

1,949,351



$

2,055,008



$

1,925,751



$

1,860,115



$

1,793,379


LIABILITIES AND STOCKHOLDERS' EQUITY





















Liabilities:





















Non-interest bearing deposits


$

388,992



$

487,875



$

550,690



$

566,016



$

535,591


Interest bearing demand deposits



71,308




100,522




80,099




93,695




99,223


Savings and NOW deposits



51,294




53,499




51,419




54,240




58,156


Money market deposits



380,500




260,316




222,540




254,190




231,207


Time deposits



701,289




730,076




608,141




585,783




575,950


Total deposits



1,593,383




1,632,288




1,512,889




1,553,924




1,500,127


Federal funds borrowed



30,000




60,696











Federal Home Loan Bank advances






45,000




100,000








Subordinated debt



72,444




72,344




72,245




72,146




72,047


Other liabilities



43,016




39,692




42,335




44,045




32,801


Total Liabilities



1,738,843




1,850,020




1,727,469




1,670,115




1,604,975


Stockholders' Equity:





















Preferred stock



27,263




27,263




27,263




27,263




27,263


Common stock



29,177




29,185




28,736




28,728




29,178


Capital surplus



64,768




64,213




63,999




63,231




64,822


Retained earnings



97,646




91,991




86,830




80,534




73,702


Accumulated other comprehensive loss



(8,346)




(7,664)




(8,546)




(9,756)




(6,561)


Total Stockholders' Equity



210,508




204,988




198,282




190,000




188,404


Total Liabilities and Stockholders' Equity


$

1,949,351



$

2,055,008



$

1,925,751



$

1,860,115



$

1,793,379


 

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME INFORMATION

(In thousands, except share and per share data)




Year-to-Date



Three Months Ended




June 30,
2023



June 30,
2022



June 30,
2023



March 31,
2023



December
31, 2022



September
30, 2022



June 30,
2022


INTEREST INCOME:





























Interest and fees on loans


$

55,586



$

34,639



$

28,855



$

26,731



$

23,972



$

20,261



$

17,954


Interest on investment securities





























Taxable securities



926




758




407




518




467




378




401


Tax-exempt securities



529




535




265




264




262




261




263


Interest on federal funds sold



2,311




229




1,179




1,132




1,071




1,013




195


Total interest income



59,352




36,161




30,706




28,645




25,772




21,913




18,813


INTEREST EXPENSE:





























Interest on interest bearing demand deposits



594




170




251




343




256




175




105


Interest on savings and NOW deposits



255




79




147




108




81




43




42


Interest on money market deposits



4,129




270




2,926




1,203




781




496




151


Interest on time deposits



11,221




2,961




7,077




4,144




2,966




2,275




1,530


Interest on federal funds borrowed



239







201




38











Interest on Federal Home Loan Bank advances



919




83




13




906




264







52


Interest on subordinated debt



1,632




1,280




820




812




828




828




812


Total interest expense



18,989




4,843




11,435




7,554




5,176




3,817




2,692


Net interest income



40,363




31,318




19,271




21,091




20,596




18,096




16,121


Provision for credit losses



921




1,280




638




283




1,118




-




480


Net interest income after provision for credit losses



39,442




30,038




18,633




20,808




19,478




18,096




15,641


NON-INTEREST INCOME:





























Deposit account service charges



1,125




1,209




535




590




610




601




597


Bank owned life insurance income



514




500




259




255




253




254




250


Loan swap fee income






101













518




101


Net gain on held-to-maturity securities






4
















4


Net gain (loss) on sale of loans






43













(211)





Other non-interest income



174




568




16




158




196




186




312


Total other income



1,813




2,425




810




1,003




1,059




1,348




1,264


NON-INTEREST EXPENSES:





























Salaries and employee benefits



14,216




11,152




6,595




7,621




6,775




5,874




5,604


Furniture and equipment expenses



1,270




1,316




772




498




710




760




659


Advertising and marketing



1,495




980




698




797




620




704




574


Occupancy expenses



912




693




426




486




378




400




352


Outside services



994




935




504




490




529




611




567


Administrative expenses



426




405




211




215




214




253




195


Other operating expenses



3,242




2,976




1,646




1,596




1,481




1,291




1,543


Total non-interest expenses



22,555




18,457




10,852




11,703




10,707




9,893




9,494


Income before income tax expense



18,700




14,006




8,591




10,108




9,830




9,551




7,411


Income tax expense



3,602




2,654




1,645




1,957




2,252




1,808




1,481


Net income



15,098




11,352




6,946




8,151




7,578




7,743




5,930


Preferred stock dividends



1,078




1,078




539




539




539




539




539


Net income available to common shareholders


$

14,020



$

10,274



$

6,407



$

7,612



$

7,039



$

7,204



$

5,391


Net income per common share, basic and diluted


$

1.86



$

1.35



$

0.85



$

1.01



$

0.95



$

0.97



$

0.71


Weighted average number of common shares, basic and diluted



7,519,949




7,611,303




7,522,764




7,517,213




7,433,607




7,463,719




7,575,484


 

UNAUDITED LOAN, DEPOSIT AND BORROWING DETAIL

(In thousands)




June 30, 2023



March 31, 2023



June 30, 2022



Percentage
Change




$ Amount



% of
Total



$ Amount



% of
Total



$ Amount



% of
Total



Last 3
Mos



Last 12
Mos


LOANS:

































Construction and land development loans


$

421,277




25.4

%


$

415,078




25.3

%


$

358,062




25.0

%



1.5

%



17.7

%

Residential real estate loans



410,550




24.7

%



391,648




23.9

%



366,758




25.6

%



4.8

%



11.9

%

Commercial real estate loans



727,772




43.9

%



737,019




45.0

%



599,683




41.8

%



-1.3

%



21.4

%

Commercial and industrial loans



93,604




5.6

%



86,937




5.3

%



92,672




6.5

%



7.7

%



1.0

%

Consumer loans



5,750




0.4

%



7,534




0.5

%



17,223




1.1

%



-23.7

%



-66.6

%

Total Gross Loans


$

1,658,953




100.0

%


$

1,638,216




100.0

%


$

1,434,398




100.0

%



1.3

%



15.7

%

Less: Allowance for credit losses



(16,047)








(15,435)








(12,982)














Net deferred loan fees



(5,422)








(5,506)








(4,541)














Net Loans


$

1,637,484







$

1,617,275







$

1,416,875














DEPOSITS:

































Non-interest bearing deposits


$

388,992




24.4

%


$

487,875




29.9

%


$

535,591




35.7

%



-20.3

%



-27.4

%

Interest-bearing deposits:

































Demand deposits



71,308




4.5

%



100,522




6.2

%



99,223




6.6

%



-29.1

%



-28.1

%

Savings and NOW deposits



51,294




3.2

%



53,499




3.3

%



58,156




3.9

%



-4.1

%



-11.8

%

Money market accounts



380,500




23.9

%



260,316




15.9

%



231,207




15.4

%



46.2

%



64.6

%

Certificates of deposit $250,000 or more



406,583




25.5

%



458,683




28.1

%



383,340




25.6

%



-11.4

%



6.1

%

Certificates of deposit less than $250,000



294,706




18.5

%



271,393




16.6

%



192,610




12.8

%



8.6

%



53.0

%

Total Deposits


$

1,593,383




100.0

%


$

1,632,288




100.0

%


$

1,500,127




100.0

%



-2.4

%



6.2

%

BORROWINGS:

































Federal funds borrowed



30,000




29.3

%



60,696




34.1

%






0.0

%



-50.6

%



0.0

%

Federal Home Loan Bank advances






0.0

%



45,000




25.3

%






0.0

%



-100.0

%



0.0

%

Subordinated debt



72,444




70.7

%



72,344




40.6

%



72,047




100.0

%



0.1

%



0.6

%

Total Borrowings


$

102,444




100.0

%


$

178,040




100.0

%


$

72,047




100.0

%



-42.5

%



42.2

%

Total Deposits and Borrowings


$

1,695,827







$

1,810,328







$

1,572,174








-6.3

%



7.9

%


































Core customer funding sources (1)


$

1,184,958




69.9

%


$

1,156,279




63.9

%


$

1,094,493




69.6

%



2.5

%



8.3

%

Brokered and listing service sources (2)



408,425




24.1

%



476,009




26.3

%



405,634




25.8

%



-14.2

%



0.7

%

Federal funds borrowed



30,000




1.7

%



60,696




3.3

%






0.0

%



-50.6

%



0.0

%

Federal Home Loan Bank advances






0.0

%



45,000




2.5

%






0.0

%



-100.0

%



0.0

%

Subordinated debt (3)



72,444




4.3

%



72,344




4.0

%



72,047




4.6

%



0.1

%



0.6

%

Total Funding Sources


$

1,695,827




100.0

%


$

1,810,328




100.0

%


$

1,572,174




100.0

%



-6.3

%



7.9

%



(1)

Includes ICS, CDARS, and reciprocal deposits maintained by customers, which represent sweep accounts tied to customer operating accounts

(2)

Consists of certificates of deposit (CD) through multiple listing services and multiple brokered deposit services, as well as ICS and CDARS one-way certificates of deposit and regional money market accounts

(3)

Subordinated debt obligation qualifies as Tier 2 capital at the holding company and Tier 1 capital at the Bank

 

UNAUDITED AVERAGE BALANCE SHEETS, INTEREST AND RATES

(In thousands)




For the three months ended June 30, 2023



For the three months ended June 30, 2022




Average
Balance



Interest
Income/
Expense
(3)(4)



Average
Yields/ Rate
(annualized)
(3)(4)



Average
Balance



Interest
Income/
Expense
(3)(4)



Average
Yields/ Rate
(annualized)
(3)(4)


ASSETS:

























Interest earning assets:

























Loans (1)(2)


$

1,649,300



$

28,855




7.02

%


$

1,434,877



$

17,954




5.02

%

Securities:

























Taxable



68,381




407




2.39

%



73,153




401




2.20

%

Tax-exempt



37,876




335




3.55

%



38,507




333




3.47

%

Federal funds and interest-bearing deposits



87,608




1,179




5.40

%



98,326




195




0.80

%

Total interest earning assets


$

1,843,165



$

30,776




6.70

%


$

1,644,863



$

18,883




4.60

%

Other assets



69,488












65,225










Total assets


$

1,912,653











$

1,710,088










Liabilities and Stockholders' Equity:

























Interest-bearing liabilities:

























Interest-bearing demand deposits


$

73,800



$

251




1.36

%


$

96,352



$

105




0.44

%

Savings and NOW deposits



50,644




147




1.16

%



62,588




42




0.27

%

Money market deposit accounts



344,118




2,926




3.41

%



234,097




151




0.26

%

Time deposits



723,056




7,077




3.93

%



499,734




1,530




1.23

%

Total interest-bearing deposits


$

1,191,618



$

10,401




3.50

%


$

892,771



$

1,828




0.82

%

Federal funds purchased



15,174




201




5.31

%



1








FHLB borrowings



989




13




5.27

%



35,275




52




0.59

%

Subordinated debt



72,405




820




4.54

%



72,009




812




4.52

%

Total interest-bearing liabilities


$

1,280,186



$

11,435




3.58

%


$

1,000,056



$

2,692




1.08

%

Demand deposits and other liabilities



424,505












521,130










Total liabilities


$

1,704,691











$

1,521,186










Stockholders' Equity



207,962












188,902










Total Liabilities and Stockholders' Equity


$

1,912,653











$

1,710,088










Interest Rate Spread











3.12

%











3.52

%

Net Interest Income






$

19,341











$

16,191






Net Interest Margin











4.21

%











3.95

%



(1)

Includes loans classified as non-accrual

(2)

Total loan interest income includes amortization of deferred loan fees, net of deferred loan costs

(3)

Income and yields for all periods presented are reported on a tax-equivalent basis using the federal statutory rate of 21%

(4)

Refer to Appendix for reconciliation of non-GAAP measures

 

UNAUDITED AVERAGE BALANCE SHEETS, INTEREST AND RATES

(In thousands)




For the six months ended June 30, 2023



For the six months ended June 30, 2022




Average
Balance



Interest
Income/
Expense
(3)(4)



Average
Yields/ Rate
(annualized)
(3)(4)



Average
Balance



Interest
Income/
Expense
(3)(4)



Average
Yields/ Rate
(annualized)
(3)(4)


ASSETS:

























Interest earning assets:

























Loans (1)(2)


$

1,624,664



$

55,586




6.90

%


$

1,406,457



$

34,639




4.97

%

Securities:

























Taxable



70,147




926




2.66

%



73,283




758




2.09

%

Tax-exempt



37,908




670




3.56

%



39,023




677




3.50

%

Federal funds and interest-bearing deposits



103,053




2,311




4.52

%



91,081




229




0.51

%

Total interest earning assets


$

1,835,772



$

59,493




6.54

%


$

1,609,844



$

36,303




4.55

%

Other assets



63,465












76,387










Total assets


$

1,899,237











$

1,686,231










Liabilities and Stockholders' Equity:

























Interest-bearing liabilities:

























Interest-bearing demand deposits


$

78,568



$

594




1.52

%


$

83,450



$

170




0.41

%

Savings and NOW deposits



51,290




255




1.00

%



72,617




79




0.22

%

Money market deposit accounts



284,906




4,129




2.92

%



250,908




270




0.22

%

Time deposits



698,384




11,221




3.24

%



478,376




2,961




1.25

%

Total interest-bearing deposits


$

1,113,148



$

16,199




2.93

%


$

885,351



$

3,480




0.79

%

Federal funds purchased



9,103




239




5.29

%



1








FHLB borrowings



39,199




919




4.73

%



36,215




83




0.46

%

Subordinated debt



72,355




1,632




4.55

%



58,079




1,280




4.44

%

Total interest-bearing liabilities


$

1,233,805



$

18,989




3.10

%


$

979,646



$

4,843




1.00

%

Demand deposits and other liabilities



460,632












517,281










Total liabilities


$

1,694,437











$

1,496,927










Stockholders' Equity



204,800












189,304










Total Liabilities and Stockholders' Equity


$

1,899,237











$

1,686,231










Interest Rate Spread











3.44

%











3.55

%

Net Interest Income






$

40,504











$

31,460






Net Interest Margin











4.45

%











3.94

%



(1)

Includes loans classified as non-accrual

(2)

Total loan interest income includes amortization of deferred loan fees, net of deferred loan costs

(3)

Income and yields for all periods presented are reported on a tax-equivalent basis using the federal statutory rate of 21%

(4)

Refer to Appendix for reconciliation of non-GAAP measures

 

UNAUDITED SUMMARY FINANCIAL DATA

(Dollars in thousands except per share data)




At or For the Three
Months Ended



At or For the Six Months
Ended




June 30,



June 30,




2023



2022



2023



2022


Per share Data and Shares Outstanding

















Earnings per common share (basic and diluted)


$

0.85



$

0.71



$

1.86



$

1.35


Book value per common share


$

24.36



$

21.41



$

24.36



$

21.41


Tangible book value per common share (2)


$

22.73



$

20.75



$

22.73



$

20.75


Weighted average common shares (basic and diluted)



7,522,764




7,575,484




7,519,949




7,611,303


Common shares outstanding at end of period



7,522,297




7,526,463




7,522,297




7,526,463


Performance Ratios

















Return on average assets (annualized)



1.46

%



1.39

%



1.60

%



1.36

%

Return on average equity (annualized)



13.40

%



12.59

%



14.87

%



12.09

%

Return on average common equity (annualized)



14.22

%



13.38

%



15.92

%



12.79

%

Yield on earning assets (FTE) (2) (annualized)



6.70

%



4.60

%



6.54

%



4.55

%

Cost of interest-bearing liabilities (annualized)



3.58

%



1.08

%



3.10

%



1.00

%

Net interest spread (FTE) (2)



3.12

%



3.52

%



3.44

%



3.55

%

Net interest margin (FTE) (2) (annualized)



4.21

%



3.95

%



4.45

%



3.94

%

Noninterest income as a percentage of average assets (annualized)



0.17

%



0.30

%



0.19

%



0.29

%

Noninterest expense to average assets (annualized)



2.28

%



2.23

%



2.39

%



2.21

%

Efficiency ratio (3)



54.04

%



54.61

%



53.48

%



54.70

%

Asset Quality

















Allowance for credit losses (ACL)

















Beginning balance, ACL - loans


$

15,435



$

12,500



$

14,114



$

11,697


Add: recoveries



1




2




12




5


Less: charge-offs



(6)







(6)





Add: provision for credit losses



617




480




1,032




1280


Add: current expected credit losses, nonrecurring adoption









895





Ending balance, ACL - loans


$

16,047



$

12,982



$

16,047



$

12,982



















Beginning balance, reserve for unfunded commitment (RUC)


$

1,178



$



$



$


Add: current expected credit losses, nonrecurring adoption









1,310





Add: provision for unfunded commitments



21







21





Less: recovery of unfunded commitments









-132





Ending balance, RUC


$

1,199



$



$

1,199



$


Total allowance for credit losses


$

17,246



$

12,982



$

17,246



$

12,982



















Allowance for credit losses on loans to total gross loans



0.97

%



0.91

%



0.97

%



0.91

%

Allowance for credit losses to total gross loans



1.04

%



0.91

%



1.04

%



0.91

%

Allowance for credit losses on loans to non-performing assets



N/A




N/A




N/A




N/A


Net charge-offs (recoveries) to average gross loans (annualized)



0.00

%



0.00

%



0.00

%



0.00

%

Concentration Ratios

















Commercial real estate loans to total capital (4)



363.43

%



366.10

%



363.43

%



366.10

%

Construction loans to total capital (5)



139.59

%



138.16

%



139.59

%



138.16

%

Non-performing Assets

















Loans 30-89 days past due to total gross loans



0.00

%



0.01

%



0.00

%



0.01

%

Loans 90 days past due to total gross loans



0.00

%



0.00

%



0.00

%



0.00

%

Non-accrual loans to total gross loans



0.00

%



0.00

%



0.00

%



0.00

%

Other real estate owned


$



$



$



$


Non-performing assets


$



$



$



$


Non-performing assets to total assets



0.00

%



0.00

%



0.00

%



0.00

%

Regulatory Capital Ratios (Bank only) (1)

















Total risk-based capital ratio



16.79

%



16.23

%



16.79

%



16.23

%

Tier 1 risk-based capital ratio



15.83

%



15.42

%



15.83

%



15.42

%

Leverage ratio



14.81

%



14.34

%



14.81

%



14.34

%

Common equity tier 1 ratio



15.83

%



15.42

%



15.83

%



15.42

%

Other information

















Closing stock price


$

22.66



$

22.77



$

22.66



$

22.77


Tangible equity / tangible assets (2)



10.24

%



10.26

%



10.24

%



10.26

%

Average tangible equity / average tangible assets (2)



10.34

%



10.81

%



10.28

%



11.03

%

Number of full-time equivalent employees



179




146




179




146


Number of full-service branch offices



6




6




6




6




(1)

Regulatory capital ratios as of June 30, 2023 are preliminary

(2)

Refer to Appendix for reconciliation of non-GAAP measures

(3)

Efficiency ratio is calculated as non-interest expense as a percentage of net interest income and non-interest income

(4)

Commercial real estate includes only non-owner occupied and construction loans as a percentage of Bank capital

(5)

Construction loans as a percentage of Bank capital

 

Unaudited Reconciliation of Certain Non-GAAP Financial Measures

(Dollars In thousands)




For the three months
ended June 30,



For the six months ended
June 30,




2023



2022



2023



2022


Net interest margin (FTE)

















Net interest income (GAAP)


$

19,271



$

16,121



$

40,363



$

31,318


FTE adjustment on tax-exempt securities



70




70




141




142


Net interest income (FTE) (non-GAAP)



19,341




16,191




40,504




31,460



















Average interest earning assets



1,843,165




1,644,863




1,835,772




1,609,844


Net interest margin (GAAP)



4.19

%



3.93

%



4.43

%



3.92

%

Net interest margin (FTE) (non-GAAP)



4.21

%



3.95

%



4.45

%



3.94

%




As of June 30,



As of June 30,




2023



2022



2023



2022


Stockholders equity, adjusted

















Total stockholders equity (GAAP)


$

210,508



$

188,404



$

210,508



$

188,404


Less: intangible assets



12,266




4,956




12,266




4,956


Tangible stockholders equity (non-GAAP)



198,242




183,448



$

198,242



$

183,448


Less: preferred stock



27,263




27,263




27,263




27,263


Tangible common stockholders equity (non-GAAP)



170,979




156,185




170,979




156,185



















Shares outstanding



7,522,297




7,526,463




7,522,297




7,526,463


Tangible book value per common share (non-GAAP)


$

22.73



$

20.75



$

22.73



$

20.75





As of June 30,



As of June 30,




2023



2022



2023



2022


Total assets, adjusted

















Total assets (GAAP)


$

1,949,351



$

1,793,379



$

1,949,351



$

1,793,379


Less: intangible assets



(12,266)




(4,956)




(12,266)




(4,956)


Total tangible assets (non-GAAP)



1,937,085




1,788,423




1,937,085




1,788,423





For the three months
ended June 30,



For the six months ended
June 30,




2023



2022



2023



2022


Average stockholders equity, adjusted

















Total average stockholders equity (GAAP)


$

207,962



$

188,902



$

204,800



$

189,304


Less: average intangible assets



(11,284)




(4,512)




(10,585)




(3,746)


Total average tangible stockholders equity (non-GAAP)



196,678




184,390




194,215




185,558





For the three months
ended June 30,



For the six months ended
June 30,




2023



2022



2023



2022


Average assets, adjusted

















Total average average assets (GAAP)


$

1,912,653



$

1,710,088



$

1,899,237



$

1,686,231


Less: average intangible assets



(11,284)




(4,512)




(10,585)




(3,746)


Total average tangible assets (non-GAAP)



1,901,369




1,705,576




1,888,652




1,682,485


Contact: Debra Cope
Director of Corporate Communications
(703) 481-4599

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/mainstreet-bancshares-inc-reports-continued-strong-financial-performance-for-2nd-quarter-2023-301883598.html

SOURCE MainStreet Bancshares, Inc.

FAQ

What is the net income of MainStreet Bancshares, Inc. for Q2 2023?

MainStreet Bancshares, Inc. reported a net income of $6.9 million for the quarter ended June 30, 2023.

What is the return on average assets for MainStreet Bancshares, Inc.?

The return on average assets for MainStreet Bancshares, Inc. is 1.60%.

What is the net interest margin for MainStreet Bancshares, Inc.?

The net interest margin for MainStreet Bancshares, Inc. is 4.45%.

What is the liquidity coverage ratio for MainStreet Bancshares, Inc.?

The liquidity coverage ratio for MainStreet Bancshares, Inc. is 124%.

What is the loan book size of MainStreet Bancshares, Inc. at the end of Q2 2023?

MainStreet Bancshares, Inc.'s loan book totaled $1.66 billion at the end of the second quarter, up 15.7% from last year.

MainStreet Bancshares, Inc.

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