Mainstreet Bancshares, Inc. · NASDAQ:MNSB
Mainstreet Bancshares — Q2 2022 Earnings Presentation
33 slides from Mainstreet Bancshares's earnings presentation, Jul 25, 2022
Slide 1: MainStreet Bancshares July 2022
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Slide 2: Safe harbor
Safe harbor Statementsiin this presentation which are not historical are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E ofthe Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995.
Slide 3: About MainStreet Bank
About MainStreet Bank Bank Established: Headquarters: Branches: Full Time Employees: Assets per Employee ($MM): Common Stock Nasdaq Listing: Close Common Stock Price: Common Shares Outstanding": Market Capitalization ($MM) Preferred Stock Nasdaq Listing: Close Preferred Stock Price’: May 26, 2004 Fa
Slide 4: A dynamic market
A dynamic market “The Washington D.C. metro area, and the Company's primary footprint in Norther Virginian particular, are among the most demographically appealing areas inthe entre country. bringing people and ‘expansion, but stil presents substantial competitive opportunites for a focused, strateg
Slide 5: Quarterly income trending nicely
Quarterly income trending nicely [Quarterly Income ($000s)! $9,000 Begining oF Pretax, PreProvision income one Te Niet Income $8,000 = 2022.2 income ad + Interest income: $18.8 Million $6,000 + Non-interest income: $1.3 Million S58 + Net income: $5.93 Million $4,000 $3,000 Going forward for the rema
Slide 6: Loan yields responding to rate increases
Loan yields responding to rate increases | TiedtoWSJPrime Tied toLIBOR Tied to 5Y Treasury Interest “et Interest ya, Weighted | \ Bes Income Weahted ule 4 (Smilion) Emiion) AVI VE $2459 $12 4.88% $2534 $123 4.85% March $4813 $229 4.76% Apr) S556 $244 474% $2724 $132 4.85% $264 $128 4.84% [May | $520
Slide 7: Monthly Net Interest Margin continues to widen
Monthly Net Interest Margin continues to widen * Net interest income has 4.90% grown steadily in the last six months. i * The Bank is well positioned for rising rate environment. 2.90% + 48% of the loan portfolio is floating rate. + 20% of the loan portfolio is 1.90 adjustable rate Sep21 Oct 21 Nov2
Slide 8: Non-interest income is trending nicely
Non-interest income is trending nicely mponerts of 2022 YTD Non Interest Income ($000) CAGR: 30%? Deposit Account Service Charges $596 Non-interest Income, less Bank Owned Life Insurance (BOL!) $501 swap fees, is steady. Loan Swap Fee Income stot 2021 was an exceptionally good year for mortgage Mort
Slide 9: The Company operates efficiently
The Company operates efficiently Efficiency Rati (3)! Total Equity / Tangible Assets (%)* 41.02 73.95 2015 2016 2017 2018 2019 2020 2021 2022 2015 2016 2017 2018 2019 2020 2021 2022 MainStreetBancshares, Inc
Slide 10: Good returns on assets and equity
Good returns on assets and equity Core ROAA (3)! [Core ROATCE (%4)!2 14.43 2015 2016 2017 2018 2019 2020 2021 2022 2015 2016 2017 2018 2019 2020 2021 2022 MainStreetBancshares, Inc
Slide 11: Solid performance
Solid performance r EPSIS? 7 TBVPCS! 8 BvPCS(s)* 2015 2016 2017 2018 2019 2020 2021 2022 2015 2016 2017 2018 2019 2020-2021 2022 MainStreetBancshares, Inc
Slide 12: Consistent organic balance sheet growth
Consistent organic balance sheet growth CAGR: 23% Lifetime’ Slide 12 ‘ % MainStreetBancshares, In
Slide 13: Strong deposit growth
Strong deposit growth DDACAGR: 38.0%! $211,749 L Total Deposits: $1.5B Slide 13 jainStreetBancshares, Inc
Slide 14: New Chief Lending Officer leading the team
New Chief Lending Officer leading the team We promoted senior commercial lender Tom Floyd to Chief Lending Officer in May 2022. Tom joined the Bank in 2017, and quickly grew his commercial loan portfolio. He has excellent credit skills along with strong market and management skills. Tom has already
Slide 15: Loan demand was good in the first half of 2022
Loan demand was good in the first half of 2022 + $54MM in PPP payoffs in first half of 2022 + Only $4MM in PPP remaining balances + The PPP portfolio earned $9.2 million thus far ide 15 MainStreetBancshares, Inc Gross Loans Reconciliation ($MM) Reconciliation of Gross Loars through June: ‘Net Loans
Slide 16: Consistent loan portfolio growth
Consistent loan portfolio growth CAGR: 23.7%! Total Loans: $1.43B Slide 16 jainStreetBancshares, Inc
Slide 17: Investor CRE concentrations are actively managed
Investor CRE concentrations are actively managed (Internal limit is 375%) a Investor CRE as a percentage of Total Capital The Bank's lifetime performance in underwriting Investor CRE includes more than 1,000 relationships and over $2 billion in loans. 367.9% 370.6% 366.1% With ZERO losses to-date. S
Slide 18: Credit Quality is actively managed
Credit Quality is actively managed [= Fisk Financials! Loss Reserve? water anh ome foment wn ie = il eee Nonaccral Loans 149 ° ° ° ° Restructred Loans ° ° ° ° ° 2018 $8,831 Ps: OREO 1.180 ms 7 ° ° 2007 SS TouiNon Performing Assets 1,529 75 175 o ° fF NPAs/ Assets (9)!2 044 31 24 \ ) 0.05, C08 0.05 0
Slide 19: The portfolio of hotel loans continues to strengthen
The portfolio of hotel loans continues to strengthen 7 Market data (STR) shows return to normaicy The Bank's portfolio of hotel loans are back to pre-pandemic levels for 1 Pandemic se757 occupancy and revenue. $841 There are 16 relationships totaling $146.3 milion in loans outstanding. Alllhotel loa
Slide 20: Very nominal AOCI exposure
Very nominal AOC! exposure Security Type (million) (million) Comprehensive US Tr $75 income (AOC!) = 5 gency $4 represents 2.5% of US Agency MBS $20 Total Capital Private CMO $5 Municipal $29 Other $10 TOTAL $143 -$6.56 Slide 20 MainStreetBancshares, In
Slide 21: AVENU
AVENU Put Our Bank in Your ApP Auto, Reconcile
Slide 22: U.S. payments will exceed $100 trillion this Year
U.S. payments will exceed $100 trillion this Year By 2030, Banking as a Service (BaaS) will exceed $7 trillion* * Size of U.S. credit card industry in 2021 According to the Federal Reserve ‘Source: Finastra Banking as a Service | Paving the Way for Embedded Finance si MainStreetBancshares, Inc.
Slide 23: Future-proofing
Future-proofing r\ Lower-cost funding source provides new opportunities in a great market D.C. Market remains vibrant with robust credit demand Traditional banking opportunities remain strong in our market Slide 23 MainStreetBancshares, Inc
Slide 24: AVENU 2022 financial highlights
ENU 2022 financial sical cliciliaiis [Balance Sheet & Income Statement 6/30/22 YTD ‘Computer software rz 956 Totalassets $4,956 Non-interest bearing deposits $69,953 Interest-bearing deposits $2,501 Money service bu: Totaldeposis $72,454 Payment proce ‘Service charge income sara Other income $16 ne
Slide 25: Get in the queue
Get in the queue (av) MainStreetBancshares, Inc.
Slide 26: Avenu's SaaS is purpose-built for compliance
Avenu’s Saas is purpose-built to ensure compliance with all applicable laws, rules and regulations. Avenu will quickly become a best-in- class solution. B met
Slide 27: Why AVENU for Fintechs
Why AVENU for Fintechs re) Quick integration and time to market integrated # Subledger with compliance Live sandbox (test environment) for proof of concept Banking and compliance training MainStreetBancshares, In
Slide 28: Implementation roadmap
Implementation roadmap Building the future of Banking as a Service (BaaS) MainStreetBancshares, Inc
Slide 29: Summary of Financial Information
Summary of Financial Information Interest come 28,954 43,836 1587415785 16203-17348 18.813, Interest Expense, 5472 12,666 298325822337 —2.151__ 2.602 Net interest Income 31.482, 31,160 W291, 13203. 13.866 15,197 16,121 Nonirterest Income 2278 3,239 1555 (14861623 1,162— 1,260 Realized Gains on Secur
Slide 30: Summary of Financial Information Cont.
Summary of Financial Information Cont. Metis (6) 108A os ogy) 91.05 8.32 125) te7 8. ts. ORE 745 1038 «10791054 12.38 1120] 1628 «©1039» 1023 tho 12.89 }OATCE 745 © 1038 © 10791113 13.18| 1260] 1781 «1084 = 0631379 15.19 ROMA (Non-GAAP) or2 oT = 1194.05 1.39| 2) 87.3. tz. ROAE (NomGAAP) 887 ©1038 ©1
Slide 31: Performance against market
Performance against market Mainstreet Bancshares XBW Nasdaq Bank Index —sar 500 5 MainStreetBancshares, Inc
Slide 32: MainStreet Bancshares, Inc. external analytics
MainStreet Bancshares, Inc. external analytics “Higher NIM drives our revised EPS Estimates. Reiterate BUY and raising fair value to $31.” “We believe strongly that MNSB's Core Deposits are more valuable as interest rates rise. Further, the company has more Core Deposits.” - Christopher Marinac, Jan
Slide 33: MainStreet Bancshares, Inc. Financial Highlights - Second Quarter, 2022
MainStreet Bancshares, Inc. Financial Highlights - Second Quarter, 2022
MainStreet Bancshares — Q2 2022 Earnings Presentation on 6ix