Mainstreet Bancshares, Inc. · NASDAQ:MNSB
Mainstreet Bancshares — FY2021 Earnings Presentation
32 slides from Mainstreet Bancshares's earnings presentation, Jan 27, 2022
Slide 1: Financial Highlights - Year-Ended 2021
MainStreet Bancshares, Inc. Nasdaq: MNSB & MNSBP Financial Highlights --- Year-Ended 2021 January 2022
Slide 2: About MainStreet Bank
About MainStreet Bank As-Of December 31, 2021 (S&P Global Market Intelligence)
Slide 3: Washington D.C. metro market
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 4: Quarterly Income Comparison
Quarterly Income Comparison 2021 Q4 Income Interest Income: $16.2 Million Non-Interest Income: $1.6 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 5: Non-Interest Income
Non-Interest Income 2021 Non-Interest Income ($000) “Other Non-Interest Income” includes $811K in mortgage origination fees. 2015 to 2021 Compound Annual Growth Rate. CAGR: 34%1 Non-Interest Income, less swap fees, has a positive growth trend year-over-year.
Slide 6: Strong Growth Story
Strong Growth Story CAGR: 23% Lifetime1 2004 to 2021 Compound Annual Growth Rate. Total Assets ($MM)
Slide 7: YTD Changes in Loan Balances
YTD Changes in Loan Balances Strong loan growth during 2021, net of Paycheck Protection Program (PPP). ~$164MM, in PPP related payoffs in 2021, representing 31% of total payoffs. $58MM in PPP remaining on books with $1.9MM in unrealized fees.
Slide 8: Strong Loan Growth
Strong Loan Growth Loan Portfolio Composition as of 12/31/21 Total Gross Loan ($MM) CAGR: 23%1 Total Loans: $1.36B 2015 to 2021 Compound Annual Growth Rate.
Slide 9: Strong Deposit Growth
Strong Deposit Growth Deposit Composition as of 12/31/21 Noninterest-Bearing Deposits ($000) Total Deposits: $1.4B Noninterest-Bearing Deposits increased 43% in 2021 and account for 37% of all Deposits CAGR: 40.7%1 2015 to 2021 Compound Annual Growth Rate.
Slide 10: Cost of Deposits & Core Deposits
Cost of Deposits & Core Deposits 20Q2 to 21Q4 drop attributable to low interest rates, repricing of maturity deposits, and continuous balance sheet management. Month-end data annualized on a 365-day basis. Cost of Interest-Bearing Deposits1 & Core Deposits / Total Deposits (%)
Slide 11: Monthly Net Interest Margin
Monthly Net Interest Margin1 (NIM) Net Interest Income has steady growth during final 3 months of 2021. Increase in loans and securities contributed to December’s increase of 28 basis-point month-over-month increase to NIM. NII / Avg Earning Assets & NIE / Avg Earning Assets 3.67% NIM Month-end data
Slide 12: Floating Rate Loans
UST loan balances that are available to reprice in 2022. Total Loans does not include construction loans to be drawn. Floating Rate Loans as of 12/31/2021 Nearly 72% of the loan portfolio is floating rate. Of the floating rate loans, 78% will adjust with a rate increase.
Slide 13: 2021 Financial Performance
2021 Financial Performance Balance Sheet & Income Statement 12/31/21 Income does not include funds transfer pricing on the $69 million in interest-free deposits ™
Slide 14: AVENU banking as a service platform
14 Deposits checking savings time Payments electronic ACH debit card virtual debit check bill payment credit card Networks ATM ACH Fed wire Card rails RTP Swift Auto Reconcile API’s Integrated Compliance BSA / AML Cyber Security Tokenization Complaint management Dashboard & Reporting FDIC Insurance
Slide 15: Why AVENU for MainStreet
15 Why for MainStreet Source of low-cost deposits Source of fee income Taps new markets Enhances shareholder value ™
Slide 16: Why AVENU for fintechs
Why AVENU for fintechs Live sandbox (test Quick integration and ‘ (8) ; environment) for proof time to market of concept Compliance training, Oo Subledger with tools & framework a integrated compliance Slide 16 MainStreetBancsh.
Slide 17: Implementation Roadmap
17 Implementation Roadmap Building the future of Banking as a Service (BaaS) Beta testing Begin Deployment Full Deployment ™
Slide 18: Profitability
Profitability Non-GAAP measure. 2021 is YTD. Book Value diverged from Tangible Book Value in 2021. BVPCS: 21.27 TBVPCS: 20.94
Slide 19: Operating Efficiency, Margin Trends, and Capital
Operating Efficiency, Margin Trends, and Capital1 2021 is YTD. Non-GAAP measure. Noninterest income excluding nonrecurring revenue/total revenue excluding nonrecurring revenue.
Slide 20: Credit Quality and Loss Provisioning
Credit Quality and Loss Provisioning Excludes PPP Loans
Slide 21: Construction Portfolio Type
Construction Portfolio Type Well-diversified across property types and subtypes. Residential loans account for 35% of loan balances and 57% of volume. Construction portfolio contains one tract project that is proceeding well.
Slide 22: CRE Portfolio by Property Type
CRE Portfolio by Property Type Well-diversified across property types. Only eight (8) loans in the CRE portfolio with balance over $10 million, with none exceeding $21 million. Average loan value of $2.7 million is well below the bank’s legal lending limit of ~$32.5 million.
Slide 23: Capital and Concentrations
Capital and Concentrations Company is well-capitalized. Company remains well-capitalized after worst-case loan portfolio stress test. Stress Test includes all active loans Construction Concentration is actively managed. Total Commercial Real Estate includes Non-Owner Occupied, Multifamily, and Const
Slide 24: Hospitality Sector is Stabilizing
Start of Pandemic Hospitality Sector is Stabilizing The bank currently has 15 customers in the Hospitality sector. The occupancy chart is representative of the Bank’s current hotel customers. Throughout 2021, occupancy reached, or exceeded, pre-pandemic levels.
Slide 25: Stock Price & Index Comparison
Stock Price & Index Comparison Previous closing price data from Yahoo Finance. Percentage change from index date of 12.31.20.
Slide 26: 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). 86% growth in share price since September 2020. ~835K Shares purchased between Oct. 26 and Nov. 23 of 2020. Stock Price Since Share Buyback
Slide 27: External Analytics
MainStreet Bancshares, Inc. External Analytics “Maintaining our $30.00 Fair Value as growth & profits continue at a solid pace.” “Maintain our 2023 EPS projections and BUY rating. The stock trades at 116% of Tangible Book Value per share, and we feel this can rise to 135% in the future and reach our
Slide 28: Tangible Book Value Per Common Share
Tangible Book Value Per Common Share TBVPCS1 21Q4: $20.94 Stock Price2: $24.59 Trading at 117% of TBVPCS TBVPCS is Tangible Book Value per Common Share As-Of December 31, 2021 11% YoY Growth Tangible Book Value per Common Share
Slide 29: Summary of Financial Information
Summary of Financial Information
Slide 30: Summary of Financial Information Cont.
Summary of Financial Information Cont.
Slide 31: 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 32: MainStreet Bancshares Financial Highlights Year-Ended 2021
MainStreet Bancshares, Inc. Financial Highlights Year-Ended 2021