MainStreet Bancshares, Inc. Reports Record Second Quarter Earnings

FAIRFAX, Va., July 15, 2019 /PRNewswire/ -- MainStreet Bancshares, Inc. (NASDAQ: MNSB) reported record net income of $3.4 million for the second quarter of 2019; more than double the amount from the second quarter of 2018.

The Company recorded net income of $6.7 million for the first half of 2019; slightly more than double that earned in the first half of 2018.  Earnings per share for both common and diluted shares was $0.81 for the six months ending June 30, 2019, compared to $0.55 for both common and diluted shares for the six months ended June 30, 2018.  The Company produced a 1.18% return on average assets and 10.67% return on average equity for the six months ended June 30, 2019, compared to a 0.76% return on average assets and a 9.03% return on average equity for the first six months ended June 30, 2018.

Net interest income was $19.2 million for the six months ending June 30, 2019, nearly double the amount for the six months ending June 30, 2018.  Loan loss provisions of $1.1 million for the six months ending June 30, 2019 decreased 47% from the six months ending June 30, 2018.  The decrease in loan loss provisions is largely tied to the Company's strategic decision to moderate loan growth. 

Noninterest income of $2.3 million for the six months ending June 30, 2019 was more than double the amount from the six months ending June 30, 2018.  The increase is due to an increase in deposit account fees, interest rate swap fees related to loan transactions, and gains recorded for the sale of the guaranteed portion of Small Business Administration ("SBA") loans.  These sources are expected to continue in a consistent manner going forward.

Total assets were $1.2 billion at June 30, 2019, as compared to $936.1 million at June 30, 2018, an increase of 27%. Net loans at June 30, 2019 total $983.6 million against net loans outstanding at June 30, 2018 of $815.9 million, an increase of 21%.  Asset quality remains solid with non-performing assets to total assets at 0.10% as of June 30, 2019, down from 0.21% as of June 30, 2018. Capital levels for the Company remain strong. 

Non-interest-bearing deposits increased to $201.4 million as of June 30, 2019, a 12% increase from June 30, 2018.  Non-interest-bearing deposits represent 20% of total deposits at June 30, 2019.  Total deposits as of June 30, 2019 were $1.0 billion an increase of $209.6 million from June 30, 2018.

As of June 30, 2019, the Company's tangible book value per share was $15.64, up 26% from $12.42 as of June 30, 2018.  According to NASDAQ, there were 12,179 trades during the quarter totaling 2.0 million shares traded. The closing share price was $22.79, or 146% of book value. The market cap was $188.0 million as of June 30, 2019.

QUOTES: "We are excited with the opportunity to expand our branch network into Washington, DC later this year," says Chris Brockett, President of MainStreet Bancshares, Inc. and MainStreet Bank. "With nearly a quarter of our outstanding loans originating from the DC corridor, we feel confident that we can have a strong presence in the District that will complement our overall footprint."

"Our goal for 2019 is to moderate growth in order to increase core deposits and enhance our net interest margin," says Jeff W. Dick, Chairman and CEO of MainStreet Bancshares, Inc. and MainStreet Bank.  "Balance sheet growth for the first half of 2019 is 7.6%, which is down from 15.9% for the first half of 2018.  While core deposit growth remains a challenge, our Business Bankers are making good inroads and we continue to build our Payments team, which should further enhance core deposit growth as well as fee income."

ABOUT MAINSTREET BANK:  MainStreet operates six branches in Herndon, Fairfax, Fairfax City, McLean, Leesburg and Clarendon.  A seventh branch on 1130 Connecticut Avenue in Washington, DC will open late in the third quarter of 2019. 

MainStreet 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 well over 1,000 businesses in the metropolitan area.

MainStreet has a full complement of payment system services for third party payment providers.  MainStreet has a nationally known market leader and a highly experienced team ready to help payment providers create a solution perfect for their needs.

MainStreet 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 mobile banking and Apple Pay to instant-issue Debit Cards, MainStreet Bank is always looking for ways to improve its customer experience.    

MainStreet Bank was the first community bank in the Washington, DC 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, 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.

Contact: Jeff W. Dick(703) 481-4567

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SOURCE MainStreet Bancshares, Inc.