Mainstreet Bancshares, Inc. · NASDAQ:MNSB
Mainstreet Bancshares — Q1 2025 Earnings Presentation
26 slides from Mainstreet Bancshares's earnings presentation, Apr 21, 2025
Slide 1: 2025 First Quarter
April 21, 2025 2025 First Quarter
Slide 2: Forward-looking statements and additional information
Forward-looking statements and additional information Statements in this presentation which are not As such, actual results could differ materially from historical are “forward-looking statements” within the those expressed or implied by forward-looking meaning of Section 27A of the Securities Act o
Slide 3: Diverse DC metro market
Diverse DC metro market Major universities Federal hub ● Georgetown ● Defense contracting ● GW ● CACI ● American ● Lockheed Martin ● Howard ● FTI ● George Mason ● SAIC ● Gallaudet ● Catholic ● UMUC ● Marymount Resident fortune 500 Other notable ● Under Armour ● Historic trend of low unemployment ● A
Slide 4: DC market by the numbers
DC market by the numbers $125,027 $906,595 The DC metropolitan Median household Average home listing area remains vibrant with income1 price2 opportunity We continually monitor decisions made by the 24 410K Administration, Congress, Median days on the Federal employees in market2 the DMV3 and the DC
Slide 5: Strategic balance sheet growth
Strategic balance sheet growth March 2022 $44M Sub-Debt April 2021 Offering Sept. 2020 $30M Sub-Debt $28.75M Offering Depository $2,228 $2,223 April 2019 Share Became SEC Offering $2,035 Registrant $1,926 and Began Trading on August 2018 NASDAQ January 2017 Capital $1,643 $1,647 $45M Private Market
Slide 6: 20+ years of service
20+ years of service ● Bank established: 2004 ● Headquarters: Fairfax, VA ● Number of branches: 6 ● Full-time employees: 182 ● Assets per employee: $12.2m ● Holding company established: 2016 5
Slide 7: Share performance
Share performance Nasdaq capital market: MNSB Close common stock $16.72 price Price / tangible book 71% value Common shares 7,703,197 outstanding Market capitalization $129 million Tangible book value $23.67 Nasdaq capital market: MNSBP Close preferred stock price $24.76 6
Slide 8: Profitability: 2025 first quarter financial summary
2025 first quarter financial summary 1Q25 4Q24 3Q24 2Q24 1Q24 EPS $0.25 ($2.20) ($0.04) $0.27 $0.36 Profitability ROAA2 0.46% (2.80%) 0.05% 0.50% 0.65% ROAE2 4.78% (28.19%) 0.47% 4.70% 5.97% ROATCE2 4.29% (36.51%) (0.60%) 4.64% 6.17% Net interest margin1,2,3 3.30% 2.96% 3.05% 3.20% 3.29% Net loans (
Slide 9: Strong liquidity management
Strong liquidity management Metric 1Q25 4Q24 3Q24 2Q24 Liquidity coverage ratio (LCR)1 225% 164% 217% 122% Core deposit ratio 2 70% 76% 78% 78% Loan / Deposit Ratio 96% 96% 95% 102% FDIC insured / total deposits 3 74% 77% 77% 78% (millions) High quality liquid assets 4 $274 $278 $311 $167 Secured li
Slide 10: Deposit structure is steady
Deposit structure is steady The Business Banking team is busy building new relationships within our market 9
Slide 11: Net interest margin on the rise
Net interest margin on the rise Quarterly net interest margin 1 3.30% 3.35% 3.30% 3.25% 3.20% Net interest margin 3.15% for the quarter ended 3.10% March 31, 2025 3.05% 3.00% 2.95% 2.90% 2.85% 1Q24 2Q24 3Q24 4Q24 1Q25 1 Tax-equivalent yield 10
Slide 12: Adjusting deposit stack to optimize pricing opportunities
Adjusting deposit stack to optimize pricing opportunities Balance Percent Weighted Weighted Type (millions) of total avg. rate maturity Non-interest-bearing DDA $345 26% 0.00% n/a Low-cost transactional 1 $105 8% 0.15% n/a Interest bearing $437 33% 3.70% n/a Term $443 33% 4.38% 7 months Total core d
Slide 13: 2025 Expectations
2025 Expectations 2025 estimated expense run rate We are (million) committed to 1st 2nd 3rd 4th driving cost Quarter Quarter Quarter Quarter Actual Estimate Estimate Estimate efficiencies to achieve 2023 $14.3 $12.5 $11.9 $11.5 expense levels 12
Slide 14: Diversified loan portfolio
Diversified loan portfolio Flat during Q1. Residential Real Estate 11% Up $25M during Non-Owner first Quarter. Construction Occupied CRE 31% loans down Construction $47M during $1.8B 19% quarter. C&I 6% Owner- Flat during Q1. Occupied CRE Multi-Family 20% 13% Up $6M during first Quarter. Up $12M dur
Slide 15: Managing commercial real estate back to within 375% of total capital
Managing commercial real estate back to within 375% of total capital Investor CRE as a % of total capital Goal is $39M reduction in CRE exposure by end 1 of Q2 1 Writedown of intangible assets affected concentration ratio 14
Slide 16: Diligent oversight for government contract lending
Diligent oversight for government contract lending 29 asset-based lines of credit Advances are supported $9.3M by billed receivables Total outstanding borrowing base per draw 54% of the total committed $80.9M lines are used for contract Total committed bidding purposes and maintain zero balances 4 t
Slide 17: Loan pricing positioned for stable or falling rates
Loan pricing positioned for stable or falling rates 76% Rate resets beyond 6 24% Rate resets within 6 40% with a weighted average floor rate of 6.32% months1 months2 March 31, 2025 total loans $1.8B 1 Loans include all fixed-rate and floating loans with a rate repricing date more than 6-months from
Slide 18: Strong loan metrics
Strong loan metrics The average new loan size is indicative of well- distributed credit risk management process. Average loan size excludes consumer loans 17
Slide 19: Earning asset stress-test shows strong results
Earning asset stress-test shows strong results Pre- and post-stress capital ratios Stress Loss Estimates ($000) $32,539 $35,661 $31,840 38,667 $42,476 $42,476 $45,104 $44,183 Well-capitalized threshold for the common equity tier 1 (CET1) risk-based capital ratio is 7%. 18
Slide 20: A great outcome for a nonperforming loan
A great outcome for a nonperforming loan Bankruptcy Court for the District of Columbia stalking horse sale resulted in $12.7 million offer with $3 million cash deposit and all-cash closing on or before June 1, 2025 2626 Pennsylvania Ave NW Washington, DC Nonperforming loans Beginning balance $21.7 m
Slide 21: Expect to see improvements in level of classified loans
Expect to see improvements in level of classified loans Classified loans million Probable outcome $26.0 Multi-Family construction with high probability of good outcome Properties are leased and paid as agreed and have a high $7.8 probability of successful outcome. $0.4 Fully secured marketable secur
Slide 22: Allowance for credit losses is directionally consistent with recent performance
The allowance for credit losses is directionally consistent with recent performance Allowance for credit losses on loans / gross loans We anticipate 1.06 this trend 0.88 will continue to normalize 2022 2023 2024 2025 Q1 in 2025 21
Slide 23: Avenu Update
Avenu Update The Company will no longer support the development of Avenu for our Banking-as-a-Service solution The timeline to achieve the expected return on invested capital extended beyond our plan and we believe that focusing on the core bank will drive greater value for the shareholders going fo
Slide 24: Financial highlights
Financial highlights Year-End Financials Quarter-End Financials In $000 unless otherwise Q1’25 noted 2021 2022 2023 2024 LTM Q1’24 Q2’24 Q3’24 Q4’24 Q1’25 Interest Income 64,199 83,845 124,421 134,615 135,109 32,469 33,436 33,591 35,119 32,963 Interest Expense 10,663 13,836 47,679 72,041 71,650 16,8
Slide 25: Financial highlights continued
Financial highlights continued Year-End Financials Quarter-End Financials In $000 unless otherwise Q1’25 noted 2021 2022 2023 2024 LTM Q1’24 Q2’24 Q3’24 Q4’24 Q1’25 Performance Metrics (%) ROAA 1.32 1.53 1.38 -0.47 -0.50 0.65 0.50 0.05 -2.80 0.46 ROAE 12.38 13.98 12.66 -4.44 -4.90 5.97 4.70 0.47 -28
Slide 26: Definitions
Definitions ACL Allowance for Credit Losses LTM Last-Twelve-Months AOCI Accumulated Other Comprehensive $MM Millions of Dollars Income CET1 Common Equity Tier-1 NCOs Net Charge-Offs CET1- Common Equity Tier-1 Risk-Based ROAA Return on Average Assets RBC Capital CRE Commercial Real Estate ROAE Return
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