Mainstreet Bancshares, Inc. · NASDAQ:MNSB
Mainstreet Bancshares — Q3 2021 Earnings Presentation
26 slides from Mainstreet Bancshares's earnings presentation, Dec 13, 2021
Slide 1: Financial Highlights for 3rd Quarter 2021
MainStreet Bancshares, Inc. Nasdaq: MNSB & MNSBP Financial Highlights for 3rd Quarter 2021 December 10, 2021
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 September 30, 2021 (S&P Global Market Intelligence)
Slide 4: Washington D.C. metro market and Northern Virginia footprint
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 that
Slide 5: Quarterly Income Comparison
Quarterly Income Comparison 2021 Q3 Income Interest Income: $15.8 Million Non-Interest Income: $1.5 Million Net Income: $4.8 Million Pre-tax, pre-provision income demonstrates the ability to generate capital for future credit exposure. Pre-Tax, Pre-Provision Income is a Non-GAAP measure. Pandemic An
Slide 6: Strong Growth Story
Strong Growth Story CAGR: 25% Lifetime1 2004 to 2020 Compound Annual Growth Rate. Total Assets ($MM)
Slide 7: YTD Changes in Loan Balances
YTD Changes in Loan Balances Positive loan growth YTD with non-PPP loans. ~$135MM, in PPP related payoffs in 2021, representing 37% of total payoffs. $88MM in PPP remaining on books with $3.8MM in unrealized fees.
Slide 8: Strong Loan Growth
Strong Loan Growth Loan Portfolio Composition as of 9/30/21 Total Gross Loan ($MM) CAGR: 21%1 Total Loans: $1.3B 2015 to 2020 Compound Annual Growth Rate.
Slide 9: Strong Deposit Growth
Strong Deposit Growth Deposit Composition as of 9/30/21 Noninterest-Bearing Deposits ($000) Total Deposits: $1.4B Noninterest-Bearing Deposits increased 28% YTD and account for 34% of all Deposits CAGR: 40.2%1 2015 to 2020 Compound Annual Growth Rate.
Slide 10: Cost of Deposits & Core Deposits
Cost of Deposits & Core Deposits 20Q2 to 21Q3 drop attributable to low interest rates and repricing of maturity deposits. Month-end data annualized on a 365-day basis. Cost of Interest-Bearing Deposits1 & Core Deposits / Total Deposits (%)
Slide 11: Net Interest Margin (NIM)
Net Interest Margin1 (NIM) Calculation Net Interest Income impacted by PPP rates Rates are at near zero on excess liquidity Net Interest Expense continues to show quarter-on-quarter improvement. NII / Avg Earning Assets & NIE / Avg Earning Assets 3.28% NIM Quarter-end data annualized on a 365-day ba
Slide 12: Profitability
Profitability Non-GAAP measure. 2021 Q3 LTM
Slide 13: Operating Efficiency, Margin Trends, and Capital
Operating Efficiency, Margin Trends, and Capital1
Slide 14: Credit Quality and Loss Provisioning
Credit Quality and Loss Provisioning Excludes PPP Loans
Slide 15: Construction Portfolio Project Distribution
Construction Portfolio Project Distribution Construction Completion Status ($Millions) Construction loan projects are actively managed each month1 Average construction project is $1.8 million 13% of the dollar amount of projects are completed and awaiting an occupancy permit The Bank uses a third-pa
Slide 16: Construction Portfolio Type
Construction Portfolio Type Well-diversified across property types and subtypes. Single family residential1 account for 43% of loan balances and 63% of volume. Construction portfolio contains one tract project that is proceeding well. Single Family Residential (SFR) is a subset of the Residential pr
Slide 17: Construction Portfolio Geography
Construction Portfolio Geography 81% of construction loan balances1 are within 15-miles of the District of Columbia. 87% of construction loan volume is within these bounds as well Excludes Raw Land Hold loans.
Slide 18: CRE Portfolio by Property Type
CRE Portfolio by Property Type Well-diversified across property types. Only seven (7) loans in the CRE portfolio with balance over $10 million, with the largest loan not exceeding $16 million. Average loan value of $2.5 million is well below the bank’s legal lending limit of ~$32.5 million.
Slide 19: Capital Ratios and Concentrations
Capital Ratios and Concentrations Company is well-capitalized. Company remains well-capitalized after worst-case loan portfolio stress test. Stress Test includes all active loans Regulatory limit per Formal and Informal Enforcement Action Manual (FDIC), Chapter 5. Construction Concentration is activ
Slide 20: Hospitality Sector is on the Upswing
Start of Pandemic Hospitality Sector is on the Upswing Occupancy is at pre-pandemic levels. The bank currently has 15 customers in the Hospitality sector. The occupancy chart is representative of the Bank’s current hotel customers.
Slide 21: Stock Price & Index Comparison
Stock Price & Index Comparison Percent change from January 1, 2021. MNSB is up 48% since Jan 1, 2021. Russell 2000 is up 16% since Jan 1, 2021. MNSB was removed from the Russell 2000 on June 25, 2021. Previous closing price data from Yahoo Finance. Data through 10.29.21
Slide 22: Share Buyback
Share Buyback Period Avg. Purchase Price: $15.29 Weekly share price has had steady rise since beginning of November (during which the buyback occurred). 84% growth in share price since September 2020. ~835K Shares purchased between Oct. 26 and Nov. 23 of 2020. Stock Price Since Share Buyback
Slide 23: Tangible Book Value Per Common Share
Tangible Book Value Per Common Share TBVPCS1 21Q3: $20.49 Stock Price2: $23.99 Trading at 117% of TBVPCS TBVPCS is Tangible Book Value per Common Share As-Of September 30, 2021 16.2% YoY Growth through 2021Q3 Tangible Book Value per Common Share
Slide 24: Summary of Financial Information
Summary of Financial Information
Slide 25: Summary of Financial Information Cont.
Summary of Financial Information Cont.
Slide 26: MainStreet Bancshares, Inc. Financial Highlights for 3rd Quarter 2021
MainStreet Bancshares, Inc. Financial Highlights for 3rd Quarter 2021
MainStreet Bancshares — Q3 2021 Earnings Presentation on 6ix