Business
MainStreet Bancshares, Inc. Reports Record Second Quarter 2021 Earnings
FAIRFAX, Va., July 20, 2021 /PRNewswire/ -- MainStreet Bancshares, Inc. (Nasdaq: MNSB & MNSBP), the holding company for MainStreet Bank, reported net income
About this update from Mainstreet Bancshares, Inc.
[{"type":"text","content":"FAIRFAX, Va., July 20, 2021 /PRNewswire/ -- MainStreet Bancshares, Inc. (Nasdaq: MNSB & MNSBP), the holding company for MainStreet Bank, reported net income of $7.1 million for the second quarter of 2021. This represents a 16.3% Return on Average Equity, a 1.7% Return on Average Assets, $0.87 per share of common stock (basic and diluted), and a book value of $20.18 per common share. \n\n \n \n \n \n \n \n\n \nOur mid-year performance is the result of a strong effort across every part of the CompanyNet interest income of $13.0 million and noninterest income of $1.6 million for the quarter-ended June 30, 2021 are up 21% and 18% respectively from the same period in 2020. \nThe Company's cost of funds for the quarter-ended June 30, 2021 is 1.1%, which is improved 37% from the same period a year earlier. The Company remains focused on reducing funding costs, increasing fee income, and improving operating efficiency. The Company's efficiency ratio is 54% for the quarter-ended June 30, 2021, an 11% improvement from the 61% efficiency ratio reported for the same period a year ago. \nTotal assets were $1.7 billion on June 30, 2021, an increase of 12% from June 30, 2020. Net loans were $1.3 billion on June 30, 2021, which includes the SBA forgiveness of $55 million of Paycheck Protection Program loan balances during the quarter. Asset quality continues to be strong with non-performing assets representing 0.07% of total assets on June 30, 2021. \nNon-interest bearing deposits represent a solid one-third of the $1.5 billion in total deposits as of June 30, 2021. In addition, 74% of the Company's total deposits are designated as \"core deposits\". \nA year ago, the Company made a special provision to the Allowance for Loan and Lease Losses (ALLL) based upon an assessment of the potential impact from the COVID 19 pandemic. At that time little was known about the pandemic. A year later and despite the pandemic, the loan portfolio remains strong and continues to perform well. The local economy also continues to be robust and is quickly recovering from the effects of the pandemic. The Company updated its assessment as of June 30, 2021 and decided to release $2.1 million of that special provision. The table below provides a recap of activities relating to the special COVID provision over the past 12 months ending June 30, 2021. \nJune 30, 2020 Sp...