Mainstreet Bancshares, Inc. · NASDAQ:MNSB
Mainstreet Bancshares — Q4 2022 Earnings Presentation
21 slides from Mainstreet Bancshares's earnings presentation, Jan 23, 2023
Slide 1: MainStreet Bancshares, Inc
MainStreet Bancshares, Inc Thomas J. Chmelik ‘nancial Officer January 23, 2023,
Slide 2: Forward-looking Statements and Additional Information
Forward-looking Statements and Additional Information Statements in 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 of the Securities Exchange Act of 1934, as amended, and the Private
Slide 3: About MainStreet Bank & MainStreet Bancshares, Inc.
About MainStreet Bank & MainStreet Bancshares, Inc. Bank Established: May 26, 2004 Headquarters: Feirfax, VA Branches: 6 “4 D.C. Metro Area Full Time Employees 168 ‘Assets per Employee (SMM): $115 con ues S si ig vali ‘Common Stock Nasdaq Listing winsB ok ‘Close Common Stock Price! $27.49 | ‘Common
Slide 4: What we do in the communities we serve
What we do in the communities we serve + Business lending & business banking * Consumer lending & consumer banking + Banking as a Service - deposits and related services + Embedded banking — deposits and related services
Slide 5: The market we serve is very robust
The market we serve is very robust Strong Employment 160% vs tnenployert fate Historic trend of low unemployment compared to overall U.S., even during downturns = AN Market Analysis + Home to>10% of all federal employees + DataCenter Alley! + More than 70 data centers + Sustains 70% of U.S. internet
Slide 6: Performance metrics continue on excellent path
Performance metrics continue on excellent path za EN ers ses | sons 097 eiceney Ratio 52.1% 5510 | s045% 50.60% ROMA tse 12K | term 1.70% ORLY ROAE 13.98% 12,38% 15.48% 16.13% RONTCE 136m% 12.10% | 10.00% 10.50% Net heres Margo! rt rt aca Simaow sian | sooo saan ca aT eo tom amma BAN etter
Slide 7: Results reflect good balance sheet management
Results reflect good balance sheet management Financial Results $3.26 1.53% 18% 20% Earnings per ROAA Increase in Increase Net Common Share Gross Loans Income vs. 2021 + Revenueup 25% YoY: driven primarily by increasing yields on floating rate loans resulting from FOMC rate increases. + Loan growth:
Slide 8: Loan yields positively impacted net interest income
Loan yields positively impacted net interest income Quarterly Net Interest Income & Net Interest Margin’ 52% of loan portfolio is floating rate = soot 1022 nae saaz sane Components of Net Interest Income! 13% a PI “008% coe 3.35% — (212) income ela ter NM Whoinsle Spencer 02/3/22) Deposts ba \ ca
Slide 9: Avenu™ team is focused
Avenu™ team is focused Highights Other assets $104 + Production site is up ‘otatassats $9,253 + Oneclientactively onboarding Nor-interest-bearing deposits: $65,553 + Additional clients in the queue Interest-bearing deposits $2,305 + Firstclientexpected to launchin Q1 2023, riers ‘cra Piieesaeret co]
Slide 10: Consistent balance sheet growth
Consistent balance sheet growth ox 2004 2005 2005 2007 2008 2009 2010 2011 20122019 2018201 ZO OT zOIB 919 2020 OR 2022 = MN ‘0
Slide 11: Loan portfolio dynamics are consistent
Loan portfolio dynamics are consistent Average loan size! and legal lending limit by year (000's) Year-end 2022 portfolio composition 42,988 sm verage Loan Size s24,104 Legal Lencng Lint s2a6s4 sa1ase $2510 TL 5a \ a '
Slide 12: Loan performance metrics are good
Loan performance metrics are good Allowance & Non-Performing Assets. Highlights + Loan growth of 18% during 2022. + Q4loan growth reflects staying powerin challenging loan interest rate environment. + Zeronon-performing assets. “Soa Some — “Soa NV cert re meen
Slide 13: Loan portfolio quality is good
Loan portfolio quality is good Investor CRE as a % of total capital ry 3879% | grooq, | 661% | 970.1% = AN Excellent credit history Investor CRE" $3.80 80 ~O bps OtherCommercia® $1.7 -$5mil_-—~30bps Consumer& Other $14bil___-$2mil_—__~14bps 2, Ger Cormac ces Cand Omer Occ CE ans. Doss aioe
Slide 14: Timeframe and number of finished units is reasonable
Timeframe and number of finished units is reasonable Deliverable Units for finished SFR, Condos, and Townhome projects" News ‘The median selling pricesin the OC. ‘metro areain November of about $353,000 was 1.4% higher than ‘November 202%. The number of new listings coming onthe market was down 22%
Slide 15: Deposit mix remains sturdy
Deposit mix remains sturdy Deposit Mix ($MM) 1 Nombhteest Bearing (Bs), exe Avena bons = C086 Time Deposts Aver NB Fa \ eee Highlights + Core deposit ratio! of 75.9% + Deposit growth of 7% for 2022 + 36% of Deposits are Non-Interest-Bearing + Avenu™ represent 12% of NIBS + Continued steady growth in
Slide 16: Deposit costs are lagging Fed increases
Deposit costs are lagging Fed increases Effective Fed Funds Rate & Cost of Deposits Highlights + Deposit beta for second half of 2022 was ~57% cost ef epost of the effective fed funds rate —etoctve Fea Funds Rate + Anticipate Q1 2023 deposit beta to be similarto second halfof 2022
Slide 17: Capital stack is well structured
Capital stack is well structured Compone ‘Subordinated debt $72,245 25.38% Preferred Stock $27,263 7.50% 9.58% ‘Common Stock $193,679 14.99% * 68.04% Aocl $8,546 Z 3.00% TOTAL $284,641 100,00% + 2022 Retumon Total Common Equity (ROTCE)
Slide 18: Common stock continues to outperform the market
Common stock continues to outperform the market onsieet Bank —Nosdoa cantatas 20% Shuseot 200 Sereno Highlights ‘2% + Oulpacing the KBW Bank Index, S&P 500, Nasdaq CapitalMarkets, and Russell 2000. 19% 208% 24% 45% a PP ELE EP EE ES SAN xen
Slide 19: Abbreviated financial information
Abbreviated financial information Inert apse ‘sara 12686 1037716005 tocea| _—_tneae|__a.g07__ signe gat? 8.78 TealRaven Five” amos aaa SATO Saas) aaa) abe Teaee Roa Nenseresteapese 13a5e 19970 25378 20300 _szees| _sposr| _ayz__age2__ eave gan 10707 Pretax Pre Sroveonincore WOOO) ‘02044297 ¥9 922" 25
Slide 20: Abbreviated financial information - continued
Abbreviated financial information - continued Fearne aes OnE 745028 10701054 1298] t306] 1029159 amy te19 sal reROAA (Non GAAP) or oer 119108. tse] ats tan 13 tea reRORE (Ne GAAP) eer 1038070 rast 2a] tae] 102318283 te1a th reRORTCE Nor GAAP) ser 1035 1070 1113 138|___—teas]__ i083 ts7o_ 51395190 Se
Slide 21: MainStreet Bancshares, Inc.
MainStreet Bancshares, Inc. 2022
MainStreet Bancshares — Q4 2022 Earnings Presentation on 6ix