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Strong credit quality and no adverse loan portfolio trends
FAIRFAX, Va., April 22, 2024 /PRNewswire/ -- MainStreet Bancshares, Inc. (Nasdaq: MNSB & MNSBP), the holding company for MainStreet Bank, reported net income of $2.77 million for the first quarter of 2024.
"Our loan portfolio was well-positioned for the current interest rate cycle and continues to generate strong and sustainable interest income. During the first quarter of 2024, we experienced an uptick in deposit costs, compressing the net interest margin to 3.24%," said Jeff W. Dick, Chairman & CEO of MainStreet Bancshares, Inc. and MainStreet Bank. "We are focused on improving our funding costs for the remainder of 2024 and anticipate that our cumulative performance ratios will reflect our ability to do so, as we build for the future and deliver positive returns to our shareholders."
The Company continues to experience strong asset quality with relatively low levels of past due and non-performing loans. It should be noted that multifamily housing in the Washington, D.C. metropolitan area is devoid of the type of rent controls experienced in New York City. Demand for housing in our market far outstrips supply and the rental markets are strong.
"Our lending team is very focused on their borrowers and relationships at this time," said Tom Floyd, Chief Lending Officer at MainStreet Bank. "We want to make sure that if any issues or concerns do arise, we recognize them early in order to properly manage risk and work together toward positive outcomes."
"We are laser-focused on growing good business relationships throughout the metropolitan area," said Abdul Hersiburane, President of MainStreet Bank. "Our best source is our existing client base, as the quality of our service and attention to detail is second to none."
Banking-as-a-ServiceThe headlines were bleak in 2023 for several of the banks providing banking-as-a-service to fintechs. In one instance, consultant Kate Drew wrote, "The truth is many of the most jarring headlines have involved sponsor banks and fintech partners that had little to no relationship at all, and instead operated through a banking-as-a-service provider. That model is all but dead. In its place will likely emerge a more resilient proposition that puts the bank in the driver's seat when it comes to compliance and focuses on fintechs with sustainable businesses and realistic objectives in financial services." Drew, Kate (December 12, 2023), Where is Banking-as-a Service Headed in 2024? Forbes Media L.L.C.
"Our one miss was underestimating the amount of time it would take to build and launch the technology that we designed," said Dick. "With hindsight, the timing is perfect as we launch a solution that is purpose-built to meet the compliance and safety and soundness needs required not only by us but also by the industry. We are the resilient solution fintechs have been waiting for."
AvenuAvenu is the only embedded banking solution that connects our partners and their apps directly and seamlessly to our purpose-built Avenu core solution. We are not a sponsor bank without our own technology, and we are not a middleware software company without our own bank. We are Avenu, a leading financial technology company owned by an established community bank in the heart of Washington, D.C.
Avenu's 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 creating 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 and ICS – solutions that provides multi-million-dollar FDIC insurance. Further information can be obtained by visiting mstreetbank.com/ics-cdars.
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, adverse changes caused by geopolitical risks at the national and global level, adverse impact of a local, national or global health crisis, 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.
MainStreet Bancshares, IncUNAUDITED CONSOLIDATED BALANCE SHEET INFORMATION(In thousands) | ||||||||||||||||||||
March 31,2024 | December31, 2023* | September30, 2023 | June 30,2023 | March 31,2023 | ||||||||||||||||
ASSETS | ||||||||||||||||||||
Cash and cash equivalents | ||||||||||||||||||||
Cash and due from banks | $ | 49,208 | $ | 53,581 | $ | 44,912 | $ | 67,700 | $ | 225,334 | ||||||||||
Federal funds sold | 75,533 | 60,932 | 76,271 | 30,341 | — | |||||||||||||||
Total cash and cash equivalents | 124,741 | 114,513 | 121,183 | 98,041 | 225,334 | |||||||||||||||
Investment securities available for sale, at fair value | 58,699 | 59,928 | 56,726 | 60,579 | 63,209 | |||||||||||||||
Investment securities held to maturity, at amortizedcost, net of allowance for credit losses of $0 for allperiods | 17,251 | 17,275 | 17,565 | 17,590 | 17,616 | |||||||||||||||
Restricted equity securities, at amortized cost | 23,924 | 24,356 | 20,619 | 20,304 | 22,436 | |||||||||||||||
Loans, net of allowance for credit losses of $16,531,$16,506, $15,626, $16,047, and $15,435, respectively | 1,727,110 | 1,705,137 | 1,681,444 | 1,637,484 | 1,617,275 | |||||||||||||||
Premises and equipment, net | 14,081 | 13,944 | 14,275 | 14,427 | 14,521 | |||||||||||||||
Accrued interest and other receivables | 10,727 | 12,390 | 11,184 | 10,256 | 9,744 | |||||||||||||||
Computer software, net of amortization | 15,691 | 14,657 | 13,373 | 12,266 | 10,559 | |||||||||||||||
Bank owned life insurance | 38,609 | 38,318 | 38,035 | 37,763 | 37,503 | |||||||||||||||
Other assets | 39,182 | 34,914 | 47,087 | 40,641 | 36,811 | |||||||||||||||
Total Assets | $ | 2,070,015 | $ | 2,035,432 | $ | 2,021,491 | $ | 1,949,351 | $ | 2,055,008 | ||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||||
Liabilities: | ||||||||||||||||||||
Non-interest bearing deposits | $ | 348,945 | $ | 364,606 | $ | 394,859 | $ | 388,992 | $ | 487,875 | ||||||||||
Interest bearing demand deposits | 165,331 | 137,128 | 76,423 | 71,308 | 100,522 | |||||||||||||||
Savings and NOW deposits | 46,036 | 45,878 | 46,550 | 51,294 | 53,499 | |||||||||||||||
Money market deposits | 446,903 | 442,179 | 461,398 | 380,500 | 260,316 | |||||||||||||||
Time deposits | 725,520 | 696,336 | 703,960 | 701,289 | 730,076 | |||||||||||||||
Total deposits | 1,732,735 | 1,686,127 | 1,683,190 | 1,593,383 | 1,632,288 | |||||||||||||||
Federal funds purchased | — | 15,000 | — | 30,000 | 60,696 | |||||||||||||||
Federal Home Loan Bank advances | — | — | — | — | 45,000 | |||||||||||||||
Subordinated debt | 72,741 | 72,642 | 72,543 | 72,444 | 72,344 | |||||||||||||||
Other liabilities | 41,418 | 40,146 | 52,015 | 43,016 | 39,692 | |||||||||||||||
Total Liabilities | 1,846,894 | 1,813,915 | 1,807,748 | 1,738,843 | 1,850,020 | |||||||||||||||
Stockholders' Equity: | ||||||||||||||||||||
Preferred stock | 27,263 | 27,263 | 27,263 | 27,263 | 27,263 | |||||||||||||||
Common stock | 29,514 | 29,198 | 29,188 | 29,177 | 29,185 | |||||||||||||||
Capital surplus | 65,940 | 65,985 | 65,407 | 64,768 | 64,213 | |||||||||||||||
Retained earnings | 108,334 | 106,549 | 102,694 | 97,646 | 91,991 | |||||||||||||||
Accumulated other comprehensive loss | (7,930) | (7,478) | (10,809) | (8,346) | (7,664) | |||||||||||||||
Total Stockholders' Equity | 223,121 | 221,517 | 213,743 | 210,508 | 204,988 | |||||||||||||||
Total Liabilities and Stockholders' Equity | $ | 2,070,015 | $ | 2,035,432 | $ | 2,021,491 | $ | 1,949,351 | $ | 2,055,008 | ||||||||||
*Derived from audited financial statements | ||||||||||||||||||||
MainStreet Bancshares, Inc UNAUDITED CONSOLIDATED STATEMENTS OF INCOME INFORMATION(In thousands, except share and per share data) | ||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
March 31,2024 | December 31,2023 | September30, 2023 | June 30, 2023 | March 31,2023 | ||||||||||||||||
INTEREST INCOME: | ||||||||||||||||||||
Interest and fees on loans | $ | 30,487 | $ | 30,849 | $ | 29,750 | $ | 28,855 | $ | 26,731 | ||||||||||
Interest on investment securities | ||||||||||||||||||||
Taxable securities | 435 | 451 | 459 | 407 | 518 | |||||||||||||||
Tax-exempt securities | 270 | 268 | 268 | 265 | 264 | |||||||||||||||
Interest on federal funds sold | 1,182 | 1,510 | 1,217 | 1,179 | 1,132 | |||||||||||||||
Total interest income | 32,374 | 33,078 | 31,694 | 30,706 | 28,645 | |||||||||||||||
INTEREST EXPENSE: | ||||||||||||||||||||
Interest on interest bearing demand deposits | 1,860 | 1,058 | 240 | 251 | 343 | |||||||||||||||
Interest on savings and NOW deposits | 157 | 146 | 145 | 147 | 108 | |||||||||||||||
Interest on money market deposits | 5,178 | 5,639 | 4,156 | 2,926 | 1,203 | |||||||||||||||
Interest on time deposits | 8,833 | 8,257 | 7,526 | 7,077 | 4,144 | |||||||||||||||
Interest on federal funds purchased | 107 | 25 | 35 | 201 | 38 | |||||||||||||||
Interest on Federal Home Loan Bank advances | 46 | 118 | 186 | 13 | 906 | |||||||||||||||
Interest on subordinated debt | 820 | 828 | 828 | 820 | 812 | |||||||||||||||
Total interest expense | 17,001 | 16,071 | 13,116 | 11,435 | 7,554 | |||||||||||||||
Net interest income | 15,373 | 17,007 | 18,578 | 19,271 | 21,091 | |||||||||||||||
(Recovery of) provision for credit losses | (195) | 466 | 255 | 638 | 283 | |||||||||||||||
Net interest income after (recovery of) provision for creditlosses | 15,568 | 16,541 | 18,323 | 18,633 | 20,808 | |||||||||||||||
NON-INTEREST INCOME: | ||||||||||||||||||||
Deposit account service charges | 469 | 510 | 514 | 535 | 590 | |||||||||||||||
Bank owned life insurance income | 292 | 283 | 272 | 259 | 255 | |||||||||||||||
Other non-interest income | 130 | 68 | 177 | 16 | 158 | |||||||||||||||
Total other income | 891 | 861 | 963 | 810 | 1,003 | |||||||||||||||
NON-INTEREST EXPENSES: | ||||||||||||||||||||
Salaries and employee benefits | 7,488 | 7,129 | 6,924 | 6,595 | 7,621 | |||||||||||||||
Furniture and equipment expenses | 935 | 804 | 713 | 772 | 498 | |||||||||||||||
Advertising and marketing | 454 | 271 | 577 | 698 | 797 | |||||||||||||||
Occupancy expenses | 435 | 397 | 375 | 426 | 486 | |||||||||||||||
Outside services | 774 | 352 | 697 | 504 | 490 | |||||||||||||||
Administrative expenses | 242 | 219 | 277 | 211 | 215 | |||||||||||||||
Other operating expenses | 1,996 | 1,964 | 1,866 | 1,646 | 1,596 | |||||||||||||||
Total non-interest expenses | 12,324 | 11,136 | 11,429 | 10,852 | 11,703 | |||||||||||||||
Income before income tax expense | 4,135 | 6,266 | 7,857 | 8,591 | 10,108 | |||||||||||||||
Income tax expense | 830 | 1,120 | 1,516 | 1,645 | 1,957 | |||||||||||||||
Net income | 3,305 | 5,146 | 6,341 | 6,946 | 8,151 | |||||||||||||||
Preferred stock dividends | 539 | 539 | 539 | 539 | 539 | |||||||||||||||
Net income available to common shareholders | $ | 2,766 | $ | 4,607 | $ | 5,802 | $ | 6,407 | $ | 7,612 | ||||||||||
Net income per common share, basic and diluted | $ | 0.36 | $ | 0.61 | $ | 0.77 | $ | 0.85 | $ | 1.01 | ||||||||||
Weighted average number of common shares, basic anddiluted | 7,611,990 | 7,527,327 | 7,524,332 | 7,522,764 | 7,517,213 | |||||||||||||||
MainStreet Bancshares, Inc UNAUDITED LOAN, DEPOSIT AND BORROWING DETAIL(In thousands) | ||||||||||||||||||||||||||||||||
March 31, 2024 | December 31, 2023 | March 31, 2023 | Percentage Change | |||||||||||||||||||||||||||||
$ Amount | % ofTotal | $ Amount | % ofTotal | $ Amount | % ofTotal | Last 3Mos | Last 12Mos | |||||||||||||||||||||||||
LOANS: | ||||||||||||||||||||||||||||||||
Construction and land development loans | $ | 408,903 | 23.4 | % | $ | 429,637 | 24.9 | % | $ | 415,078 | 25.3 | % | -4.8 | % | -1.5 | % | ||||||||||||||||
Residential real estate loans | 451,991 | 25.8 | % | 474,602 | 27.5 | % | 391,648 | 23.9 | % | -4.8 | % | 15.4 | % | |||||||||||||||||||
Commercial real estate loans | 813,387 | 46.5 | % | 743,827 | 43.1 | % | 737,019 | 45.0 | % | 9.4 | % | 10.4 | % | |||||||||||||||||||
Commercial and industrial loans | 71,822 | 4.1 | % | 75,415 | 4.4 | % | 86,937 | 5.3 | % | -4.8 | % | -17.4 | % | |||||||||||||||||||
Consumer loans | 2,902 | 0.2 | % | 3,610 | 0.1 | % | 7,534 | 0.5 | % | -19.6 | % | -61.5 | % | |||||||||||||||||||
Total Gross Loans | $ | 1,749,005 | 100.0 | % | $ | 1,727,091 | 100.0 | % | $ | 1,638,216 | 100.0 | % | 1.3 | % | 6.8 | % | ||||||||||||||||
Less: Allowance for credit losses | (16,531) | (16,506) | (15,435) | |||||||||||||||||||||||||||||
Net deferred loan fees | (5,364) | (5,448) | (5,506) | |||||||||||||||||||||||||||||
Net Loans | $ | 1,727,110 | $ | 1,705,137 | $ | 1,617,275 | ||||||||||||||||||||||||||
DEPOSITS: | ||||||||||||||||||||||||||||||||
Non-interest bearing deposits | $ | 348,945 | 20.1 | % | $ | 364,606 | 21.6 | % | $ | 487,875 | 29.9 | % | -4.3 | % | -28.5 | % | ||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||||||||||||||
Demand deposits | 165,331 | 9.5 | % | 137,128 | 8.1 | % | 100,522 | 6.2 | % | 20.6 | % | 64.5 | % | |||||||||||||||||||
Savings and NOW deposits | 46,036 | 2.7 | % | 45,878 | 2.7 | % | 53,499 | 3.3 | % | 0.3 | % | -13.9 | % | |||||||||||||||||||
Money market accounts | 446,903 | 25.8 | % | 442,179 | 26.2 | % | 260,316 | 15.9 | % | 1.1 | % | 71.7 | % | |||||||||||||||||||
Certificates of deposit $250,000 ormore | 467,892 | 27.0 | % | 442,662 | 26.3 | % | 458,683 | 28.1 | % | 5.7 | % | 2.0 | % | |||||||||||||||||||
Certificates of deposit less than$250,000 | 257,628 | 14.9 | % | 253,674 | 15.1 | % | 271,393 | 16.6 | % | 1.6 | % | -5.1 | % | |||||||||||||||||||
Total Deposits | $ | 1,732,735 | 100.0 | % | $ | 1,686,127 | 100.0 | % | $ | 1,632,288 | 100.0 | % | 2.8 | % | 6.2 | % | ||||||||||||||||
BORROWINGS: | ||||||||||||||||||||||||||||||||
Federal funds purchased | — | 0.0 | % | 15,000 | 17.1 | % | 60,696 | 34.1 | % | -100.0 | % | -100.0 | % | |||||||||||||||||||
Federal Home Loan Bank advances | — | 0.0 | % | — | 0.0 | % | 45,000 | 25.3 | % | 0.0 | % | -100.0 | % | |||||||||||||||||||
Subordinated debt | 72,741 | 100.0 | % | 72,642 | 82.9 | % | 72,344 | 40.6 | % | 0.1 | % | 0.5 | % | |||||||||||||||||||
Total Borrowings | $ | 72,741 | 100.0 | % | $ | 87,642 | 100.0 | % | $ | 178,040 | 100.0 | % | -17.0 | % | -59.1 | % | ||||||||||||||||
Total Deposits and Borrowings | $ | 1,805,476 | $ | 1,773,769 | $ | 1,810,328 | 1.8 | % | -0.3 | % | ||||||||||||||||||||||
Core customer funding sources (1) | $ | 1,312,746 | 72.7 | % | $ | 1,252,534 | 70.7 | % | $ | 1,156,279 | 63.9 | % | 4.8 | % | 13.5 | % | ||||||||||||||||
Brokered and listing service sources (2) | 419,989 | 23.3 | % | 433,593 | 24.4 | % | 476,009 | 26.3 | % | -3.1 | % | -11.8 | % | |||||||||||||||||||
Federal funds borrowed | — | 0.0 | % | 15,000 | 0.8 | % | 60,696 | 3.3 | % | -100.0 | % | -100.0 | % | |||||||||||||||||||
Federal Home Loan Bank advances | — | 0.0 | % | — | 0.0 | % | 45,000 | 2.5 | % | 0.0 | % | -100.0 | % | |||||||||||||||||||
Subordinated debt (3) | 72,741 | 4.0 | % | 72,642 | 4.1 | % | 72,344 | 4.0 | % | 0.1 | % | 0.5 | % | |||||||||||||||||||
Total Funding Sources | $ | 1,805,476 | 100.0 | % | $ | 1,773,769 | 100.0 | % | $ | 1,810,328 | 100.0 | % | 1.8 | % | -0.3 | % | ||||||||||||||||
(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. |
Excludes $210.9 million in core deposits placed in reciprocal networks for FDIC insurance coverage that will be classified as brokered deposits on the call report in pursuant to rule 12 CFR 337.6(e) as of March 31, 2024. | |
(3) | Subordinated debt obligation qualifies as Tier 2 capital at the holding company and Tier 1 capital at the Bank |
MainStreet Bancshares, Inc UNAUDITED AVERAGE BALANCE SHEETS, INTEREST AND RATES(In thousands) | ||||||||||||||||||||||||
For the three months ended March 31,2024 | For the three months ended March 31,2023 | |||||||||||||||||||||||
AverageBalance | InterestIncome/Expense(3)(4) | AverageYields/ Rate(annualized)(3)(4) | AverageBalance | InterestIncome/Expense(3)(4) | AverageYields/ Rate(annualized)(3)(4) | |||||||||||||||||||
ASSETS: | ||||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||
Loans (1)(2) | $ | 1,728,761 | $ | 30,487 | 7.07 | % | $ | 1,599,756 | $ | 26,731 | 6.78 | % | ||||||||||||
Securities: | ||||||||||||||||||||||||
Taxable | 56,001 | 435 | 3.12 | % | 57,600 | 518 | 3.65 | % | ||||||||||||||||
Tax-exempt | 37,420 | 342 | 3.66 | % | 37,941 | 334 | 3.57 | % | ||||||||||||||||
Federal funds and interestbearing deposits | 91,993 | 1,182 | 5.15 | % | 118,670 | 1,132 | 3.87 | % | ||||||||||||||||
Total interest-earning assets | $ | 1,914,175 | $ | 32,446 | 6.80 | % | $ | 1,813,967 | $ | 28,715 | 6.42 | % | ||||||||||||
Other assets | 123,294 | 71,704 | ||||||||||||||||||||||
Total assets | $ | 2,037,469 | $ | 1,885,671 | ||||||||||||||||||||
Liabilities and Stockholders' Equity: | ||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||
Interest-bearing demanddeposits | $ | 146,248 | $ | 1,860 | 5.10 | % | $ | 83,388 | $ | 343 | 1.67 | % | ||||||||||||
Savings and NOW deposits | 44,219 | 157 | 1.42 | % | 51,943 | 108 | 0.84 | % | ||||||||||||||||
Money market deposit accounts | 433,654 | 5,178 | 4.79 | % | 225,037 | 1,203 | 2.17 | % | ||||||||||||||||
Time deposits | 710,019 | 8,833 | 4.99 | % | 673,441 | 4,144 | 2.50 | % | ||||||||||||||||
Total interest-bearing deposits | $ | 1,334,140 | $ | 16,028 | 4.82 | % | $ | 1,033,809 | $ | 5,798 | 2.27 | % | ||||||||||||
Federal funds borrowed | 7,476 | 107 | 5.74 | % | 2,965 | 38 | 5.20 | % | ||||||||||||||||
FHLB advances | 3,297 | 46 | 5.60 | % | 77,833 | 906 | 4.72 | % | ||||||||||||||||
Subordinated debt | 72,703 | 820 | 4.52 | % | 72,306 | 812 | 4.55 | % | ||||||||||||||||
Total interest-bearing liabilities | $ | 1,417,616 | $ | 17,001 | 4.81 | % | $ | 1,186,913 | $ | 7,554 | 2.58 | % | ||||||||||||
Demand deposits and other liabilities | 397,753 | 497,155 | ||||||||||||||||||||||
Total liabilities | $ | 1,815,369 | $ | 1,684,068 | ||||||||||||||||||||
Stockholders' Equity | 222,100 | 201,603 | ||||||||||||||||||||||
Total Liabilities and Stockholders'Equity | $ | 2,037,469 | $ | 1,885,671 | ||||||||||||||||||||
Interest Rate Spread | 1.99 | % | 3.84 | % | ||||||||||||||||||||
Net Interest Income | $ | 15,445 | $ | 21,161 | ||||||||||||||||||||
Net Interest Margin | 3.24 | % | 4.73 | % | ||||||||||||||||||||
(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 |
MainStreet Bancshares, Inc UNAUDITED SUMMARY FINANCIAL DATA(Dollars in thousands except per share data) | ||||||||
At or For the Three Months Ended | ||||||||
March 31, | ||||||||
2024 | 2023 | |||||||
Per share Data and Shares Outstanding | ||||||||
Earnings per common share (basic and diluted) | $ | 0.36 | $ | 1.01 | ||||
Book value per common share | $ | 25.72 | $ | 23.62 | ||||
Tangible book value per common share(2) | $ | 23.66 | $ | 22.22 | ||||
Weighted average common shares (basic and diluted) | 7,611,990 | 7,517,213 | ||||||
Common shares outstanding at end of period | 7,614,090 | 7,524,277 | ||||||
Performance Ratios | ||||||||
Return on average assets (annualized) | 0.65 | % | 1.75 | % | ||||
Return on average equity (annualized) | 5.97 | % | 16.40 | % | ||||
Return on average common equity (annualized) | 5.69 | % | 17.71 | % | ||||
Yield on earning assets (FTE) (2) (annualized) | 6.80 | % | 6.42 | % | ||||
Cost of interest bearing liabilities (annualized) | 4.81 | % | 2.58 | % | ||||
Net interest spread (FTE)(2) | 1.99 | % | 3.84 | % | ||||
Net interest margin (FTE)(2) (annualized) | 3.24 | % | 4.73 | % | ||||
Noninterest income as a percentage of average assets (annualized) | 0.18 | % | 0.22 | % | ||||
Noninterest expense to average assets (annualized) | 2.43 | % | 2.52 | % | ||||
Efficiency ratio(3) | 75.77 | % | 52.97 | % | ||||
Asset Quality | ||||||||
Allowance for credit losses (ACL) | ||||||||
Beginning balance, ACL - loans | $ | 16,506 | $ | 14,114 | ||||
Add: current expected credit losses, nonrecurring adoption | — | 895 | ||||||
Add: recoveries | 2 | 11 | ||||||
Less: charge-offs | (141) | — | ||||||
Add: provision for (recovery of) credit losses - loans | 164 | 415 | ||||||
Ending balance, ACL - loans | $ | 16,531 | $ | 15,435 | ||||
Beginning balance, reserve for unfunded commitment (RUC) | $ | 1,009 | $ | — | ||||
Add: current expected credit losses, nonrecurring adoption | — | 1,310 | ||||||
Add: provision for (recovery of) unfunded commitments, net | (359) | (132) | ||||||
Ending balance, RUC | $ | 650 | $ | 1,178 | ||||
Total allowance for credit losses | $ | 17,181 | $ | 16,613 | ||||
Allowance for credit losses on loans to total gross loans | 0.95 | % | 0.94 | % | ||||
Allowance for credit losses to total gross loans | 0.98 | % | 1.01 | % | ||||
Allowance for credit losses on loans to non-performing loans | 1.78X | N/A | ||||||
Net charge-offs (recoveries) to average gross loans (annualized) | 0.03 | % | 0.00 | % | ||||
Concentration Ratios | ||||||||
Commercial real estate loans to total capital (4) | 364.65 | % | 372.12 | % | ||||
Construction loans to total capital (5) | 130.06 | % | 140.78 | % | ||||
Non-performing Assets | ||||||||
Loans 30-89 days past due to total gross loans | 0.22 | % | 0.00 | % | ||||
Loans 90 days past due to total gross loans | 0.51 | % | 0.00 | % | ||||
Non-accrual loans to total gross loans | 0.53 | % | 0.00 | % | ||||
Other real estate owned | $ | — | $ | — | ||||
Non-performing loans | $ | 9,263 | $ | — | ||||
Non-performing assets to total assets | 0.45 | % | 0.00 | % | ||||
Regulatory Capital Ratios (Bank only)(1) | ||||||||
Total risk-based capital ratio | 17.05 | % | 16.35 | % | ||||
Tier 1 risk-based capital ratio | 16.12 | % | 15.49 | % | ||||
Leverage ratio | 14.54 | % | 14.69 | % | ||||
Common equity tier 1 ratio | 16.12 | % | 15.49 | % | ||||
Other information | ||||||||
Closing stock price | $ | 18.16 | $ | 23.49 | ||||
Tangible equity / tangible assets (2) | 10.10 | % | 9.51 | % | ||||
Average tangible equity / average tangible assets (2) | 10.24 | % | 10.22 | % | ||||
Number of full time equivalent employees | 191 | 170 | ||||||
Number of full service branch offices | 6 | 6 | ||||||
(1) | Regulatory capital ratios as of March 31, 2024 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 |
MainStreet Bancshares, IncUnaudited Reconciliation of Certain Non-GAAP Financial Measures(Dollars In thousands) | ||||||||
For the three months ended March31, | ||||||||
2024 | 2023 | |||||||
Net interest margin (FTE) | ||||||||
Net interest income (GAAP) | $ | 15,373 | $ | 21,091 | ||||
FTE adjustment on tax-exempt securities | 72 | 70 | ||||||
Net interest income (FTE) (non-GAAP) | 15,445 | 21,161 | ||||||
Average interest earning assets | 1,914,175 | 1,813,967 | ||||||
Net interest margin (GAAP) | 3.22 | % | 4.72 | % | ||||
Net interest margin (FTE) (non-GAAP) | 3.24 | % | 4.73 | % | ||||
For the three months ended March31, | ||||||||
2024 | 2023 | |||||||
Yield on earning assets (FTE) | ||||||||
Total interest income | $ | 32,374 | $ | 28,645 | ||||
FTE adjustment on tax-exempt securities | 72 | 70 | ||||||
Total interest income (FTE) (non-GAAP) | 32,446 | 28,715 | ||||||
Average interest earning assets | 1,914,175 | 1,813,967 | ||||||
Yield on earning assets (GAAP) | 6.78 | % | 6.40 | % | ||||
Yield on earning assets (FTE) (non-GAAP) | 6.80 | % | 6.42 | % | ||||
For the three months endedMarch 31, | ||||||||
2024 | 2023 | |||||||
Net interest spread (FTE) | ||||||||
Yield on earning assets (GAAP) | 6.78 | % | 6.40 | % | ||||
Yield on earning assets (FTE) (non-GAAP) | 6.80 | % | 6.42 | % | ||||
Yield on interest-bearing liabilities | 4.81 | % | 2.58 | % | ||||
Net interest spread (GAAP) | 1.97 | % | 3.82 | % | ||||
Net interest spread (FTE) (non-GAAP) | 1.99 | % | 3.84 | % | ||||
As of March 31, | ||||||||
2024 | 2023 | |||||||
Tangible common stockholders' equity | ||||||||
Total stockholders' equity (GAAP) | $ | 223,121 | $ | 204,988 | ||||
Less: intangible assets | (15,691) | (10,559) | ||||||
Tangible stockholders' equity (non-GAAP) | 207,430 | 194,429 | ||||||
Less: preferred stock | (27,263) | (27,263) | ||||||
Tangible common stockholders' equity (non-GAAP) | 180,167 | 167,166 | ||||||
Common shares outstanding | 7,614,090 | 7,524,277 | ||||||
Tangible book value per common share (non-GAAP) | $ | 23.66 | $ | 22.22 | ||||
As of March 31, | ||||||||
2024 | 2023 | |||||||
Total tangible assets | ||||||||
Total assets (GAAP) | $ | 2,070,015 | $ | 2,055,008 | ||||
Less: intangible assets | (15,691) | (10,559) | ||||||
Total tangible assets (non-GAAP) | 2,054,324 | 2,044,449 | ||||||
For the three months ended March31, | ||||||||
2024 | 2023 | |||||||
Average tangible stockholders' equity | ||||||||
Total average stockholders' equity (GAAP) | $ | 222,100 | $ | 201,603 | ||||
Less: average intangible assets | (15,078) | (9,879) | ||||||
Total average tangible stockholders' equity (non-GAAP) | 207,022 | 191,724 | ||||||
For the three months ended March31, | ||||||||
2024 | 2023 | |||||||
Average tangible assets | ||||||||
Total average assets (GAAP) | $ | 2,037,469 | $ | 1,885,671 | ||||
Less: average intangible assets | (15,078) | (9,879) | ||||||
Total average tangible assets (non-GAAP) | 2,022,391 | 1,875,792 | ||||||
Contact:Debra CopeDirector of Corporate CommunicationsDesk (703) 481-4599Mobile (202) 468-3184
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SOURCE MainStreet Bancshares, Inc.
