Business
MainStreet Bancshares, Inc. Reports Strong Net Income as Interest Rates Rise
FAIRFAX, Va., July 25, 2022 /PRNewswire/ -- MainStreet Bancshares, Inc. (Nasdaq: MNSB & MNSBP), the holding company for MainStreet Bank, said its net interest
About this update from Mainstreet Bancshares, Inc.
[{"type":"text","content":"FAIRFAX, Va., July 25, 2022 /PRNewswire/ -- MainStreet Bancshares, Inc. (Nasdaq: MNSB & MNSBP), the holding company for MainStreet Bank, said its net interest margin widened as rates climbed in recent months, driving strong net income for the second quarter and six months ended June 30, 2022.The Bank's loan portfolio is well positioned for increasing interest rates. \"The FOMC's next announcement is due to be released on July 27 and based upon Street consensus we anticipate continued net interest margin expansion,\" said Jeff W. Dick, Chairman & CEO of MainStreet Bancshares, Inc. and MainStreet Bank.\"We have been anticipating this trend for some time and we strategically aligned our portfolio to flex as the economy shifts,\" Dick said. \"Even as we focus on maintaining a rigorous credit culture, we are constantly looking to the future, sharpening our understanding of what clients demand in an evolving financial services market, and choosing to innovate.\"A focal point of MainStreet Bank's innovation is its Avenu™ Software as a Service (SaaS) and Banking as a Service (BaaS) platform. Dick and other MainStreet Bank executives will discuss quarterly and half-year earnings and preview business developments at Avenu™ during its virtual webcast and quarterly earnings call at 2 p.m. Eastern time today.Net income totaled $5.9 million for three months ended June 30, and $11.4 million for the six months ended June 30. Net interest income totaled $16.1 million in the second quarter, 6% higher than the immediately preceding quarter and 24.1% higher than the comparable period in 2021. \n\n \n \n \n \n \n \n\n \nRising interest rates propelled the net interest margin higher by 75 basis points to 3.95% for the quarter ended June 30, versus 3.20% a year earlier, on a tax equivalent basis. The Company's efficiency ratio remains solid at 55%. Total assets reached $1.8 billion in the second quarter, a 5.0% increase from a year earlier.\nQuarterly results represent:\n12.59% return on average equity1.39% return on average assets$0.71 earnings per share of common stock (basic and diluted)$21.41 per common share book valueThe level of Accumulated Other Comprehensive Income (AOCI) for the Company is low at -$6.56 million. The level is consistent with the size and quality of the investment portfolio, as the Bank enjoys consistent strong in-market loan ...