Mainstreet Bancshares, Inc. · NASDAQ:MNSB
Mainstreet Bancshares — Q4 2020 Earnings Presentation
21 slides from Mainstreet Bancshares's earnings presentation, Feb 2, 2021
Slide 1: MainStreet Bancshares Financial Highlights 4th Quarter 2020
MainStreet Bancshares, Inc. Nasdaq: MNSB & MNSBP Financial Highlights 4th Quarter 2020 A Russell 2000 Company February 3, 2021 Exhibit 99.1
Slide 2: Forward-looking statements
This presentation 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 presentation that are not historical facts are forward-looking statements as defined in the Private Se
Slide 3: About MainStreet Bank
About MainStreet Bank As-Of January 29, 2020 (S&P Global Market Intelligence)
Slide 4: Washington D.C. metro market and Northern Virginia footprint
4 The Washington D.C. metro area, and the Company’s primary footprint in Northern Virginia in particular, are among the most demographically appealing areas in the entire country, bringing people and companies to the region at a very significant rate. This also makes for a dynamic banking market tha
Slide 5: Quarterly Net Income 2020 Year-End
Quarterly Net Income 2020 Year-End Interest Income: $62.1 Million Non-Interest Income: $7.5 Million Net Income: $15.7 Million Fourth Quarter’s net income was a record $7.71 Million
Slide 6: Non-Interest Income 2020
Non-Interest Income 2020 Non-Interest Income ($000) “Other Non-Interest Income” includes a record $725K in mortgage origination fees. 2015 to 2020 Compound Annual Growth Rate CAGR: 42.7%1
Slide 7: Strong Growth Story
Strong Growth Story ‘04 May 2004 $12.5M Private Placement of Common Stock ‘05 August 2005 $12.6M Private Placement of Common Stock & Began trading on OTC Market ‘14 December 2014 $12.8M Private Placement of Common Stock ‘16 ‘17 ‘18 ‘19 ‘20 July 2016 Formed Holding Company / Began Trading on OTCQX Ja
Slide 8: Strong Loan Growth
Strong Loan Growth Loan Portfolio Composition as of 12/31 Gross Loan Growth ($MM) CAGR: 26.5%1 Total Loans: $1.3B 2015 to 2020 Compound Annual Growth Rate
Slide 9: Loan Sale
Loan Sale As-of January 12, 2021 During Q4 2020, management engaged an investment banking firm to sell $57.0 million1 in non-owner occupied commercial real estate loans for concentration management purposes. The subject loans were reclassified as “Available for Sale” at year-end and the Bank has a L
Slide 10: Strong Deposit Growth
Strong Deposit Growth Deposit Composition as of 12/31 Noninterest-Bearing Deposits ($000) Total Deposits: $1.4B Noninterest Bearing Deposits increased 46% since Year-End 2019 and account for 25.8% of all Deposits CAGR: 40.2%1 2015 to 2020 Compound Annual Growth Rate
Slide 11: Cost of Deposits & Core Deposits
Cost of Deposits & Core Deposits 20Q2 to 20Q4 drop attributable to both low interest rates and higher PPP deposits. Annualized Cost of Interest-Bearing Deposits1 & Core Deposits / Total Deposits (%)
Slide 12: Net Interest Margin (NIM) Calculation
Net Interest Margin (NIM) Calculation Net Interest Margin Shows Signs of Stabilizing Stable Interest Income. Decreasing Interest Expense. NII / Avg Earning Assets & NIE / Avg Earning Assets 3.33% NIM
Slide 13: Profitability
Profitability Non-GAAP measure.
Slide 14: Operating Efficiency, Margin Trends, and Capital
Operating Efficiency, Margin Trends, and Capital 1 Noninterest income excluding nonrecurring revenue/total revenue excluding nonrecurring revenue Non-GAAP measure.
Slide 15: Credit Quality and Loss Provisioning
Credit Quality and Loss Provisioning Excludes Loans Available-for-Sale Excludes PPP Loans
Slide 16: Fourth Quarter Changes to Allowances
Fourth Quarter Changes to Allowances The Bank recovered $1.498 million of a loan charged-off earlier in the year and was able to recapture a specific reserve for another loan. The indirect loan portfolio losses for the year were less than previous years, so $500,000 was released from the special pan
Slide 17: External Analytics
MainStreet Bancshares, Inc. External Analytics “We are raising our Fair Value to $21.75 from $18.00 as MNSB shares should trade again with tangible book premium (P-to-TBV ratio at 105%+).” “MNSB trades at 94% of Tangible Book Value (TBV) which supports a higher stock price. MNSB trades at 94% of TBV
Slide 18: Share Buyback Period Stock Price
Share Buyback Period Stock Price Since Share Buyback Weekly share price has had steady rise since beginning of November (during which the buyback occurred). 41% growth in share price since end of September. ~835K Shares purchased between Oct. 26 and Nov. 23.
Slide 19: Excellent Board Diversity
Excellent Board Diversity Slide 19 MainStreetBancshares, Inc.
Slide 20: Summary of Financial Information
Summary of Financial Information
Slide 21: Summary of Financial Information – cont.
Summary of Financial Information – cont. Tangible Book Value per Common Share as-of Jan. 31 is $19.11
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