Business
MainStreet Bancshares, Inc. Reports Record Earnings
FAIRFAX, Va., Jan. 21, 2021 /PRNewswire/ -- MainStreet Bancshares, Inc. (Nasdaq: MNSB & MNSBP), the holding company for MainStreet Bank, reported record net
About this update from Mainstreet Bancshares, Inc.
[{"type":"text","content":"FAIRFAX, Va., Jan. 21, 2021 /PRNewswire/ -- MainStreet Bancshares, Inc. (Nasdaq: MNSB & MNSBP), the holding company for MainStreet Bank, reported record net income of $15.7 million for 2020, which represents a 10.54% Return on Average Equity (ROAE), a 1.05% Return on Average Assets (ROAA) and $1.85 per share of common stock (basic and diluted).\n\n \n \n \n \n \n \n\n \nThe strong year-end results can be attributed to the Bank's breakneck performance in response to the pandemicNet interest income and noninterest income for the year-ended December 31, 2020 increased to $45.9 million and $7.5 million, respectively. Net interest income and noninterest income for the year-ended December 31, 2020 increased 16.5% and 54%, respectively, over the same period in 2019. The Company realized $2.6 million of the $5.8 million recognized as fee income from the Paycheck Protection Program (PPP) during the year. \nTotal assets were $1.6 billion, an increase of 29% from the previous year-end. Net loans were $1.3 billion as of December 31, 2020, which included $135 million of the original $173 million in loans related to the PPP (22% were forgiven/repaid during 2020). Asset quality remains strong with non-performing assets and Other Real Estate Owned (OREO) representing only 0.08% of total assets as of December 31, 2020. \nNon-interest-bearing deposits were $371 million, representing 26% of total deposits as of December 31, 2020. Total deposits as of December 31, 2020 were $1.4 billion, and core deposits represent a healthy 72% of total deposits. \n\"The strong year-end results can be attributed to the Bank's breakneck performance in response to the pandemic, both at the start and throughout the entire year,\" said Abdul Hersiburane, President of MainStreet Bank. \"The Bank worked with all borrowers in order to assist, where prudent, with providing meaningful liquidity through the Paycheck Protection Plan, the Main Street Lending Program, payment deferrals and/or shifting to interest-only payments for a period.\" \nWith the hospitality industry being most hard-hit, the team worked closely throughout the year with the 14 operating hotels in the Bank's portfolio. Since April 2020, monthly Smith Travel Research (STR) reports for the portfolio of hotels showed favorable trends for occupancy. As of January 2021, all previously reported borrowers with p...