Mainstreet Bancshares, Inc. · NASDAQ:MNSB
Mainstreet Bancshares — Q3 2022 Earnings Presentation
31 slides from Mainstreet Bancshares's earnings presentation, Oct 17, 2022
Slide 1: 2022 Third-Quarter Update
MainStreet Bancshares, Inc. Nasdaq: MNSB & MNSBP- 2022 Third-Quarter Update | October 2022 MainStreetBancshares, Inc.
Slide 2: Safe harbor
Safe harbor ‘Statements in this presentation which are not historical are “forward-looking statements" within the meaning of Section 27A ofthe Securities Actof 1933, as amended, Section 21E of the 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: May 26, 2004 Headquarters: Fairfax, VA Branches: 6 Full Time Employees: 157 Assets per Employee (SMM): $11.8 Common Stock Nasdaq Listing: MNSB Close Common Stock Price’: $22.81 Common Shares Outstanding': 7,425,432 Market Capitalization ($MM) $169.4 Preferred
Slide 4: A dynamic market
A dynamic market ‘The Washington D.C. metro area, and the Companys primary footer in Norther Vega in particular. are among the most demographically appealing areas inthe entire county, ‘bringing people and companies othe region at avery siniicantrate. Tis also makes for a dynamic barking market that
Slide 5: Quarterly income trending nicely
Quarterly income trending nicely [= Quarter income $0005) $11,000 Paden =e Pre-Tax, Pre-Provision Income poasiictles 2022 Q3 income $9,000 * Interest income: $21.9 Million + Non-interest income: $1.3. Million $7000 + Net income: $7.7 Million $.000 Going forward for the remainder of 2022, non-interes
Slide 6: Monthly net interest margin continues to widen
Monthly net interest margin continues to widen + Net interest income has s.40%: grown steadily in the last nine months. + The Bank is well positioned for rising rate environment + 48% of the loan portolo is floating rate. 2.40% * 19% of the loan portfolio adjustable rate. MainStreetBancshares, Inc
Slide 7: Loan yields responding well to rate increases
Loan yields responding well to rate increases Tied toWSJPrime Tied toLIBOR Tied to 5-year Treasury - weighted average rates tied to WSJ Prime and LIBOR are up 251 bp and 245 bp respectively - weighted average rates for the portfolio are up 137 bp Mai etBancshares, In
Slide 8: Good quarter-on-quarter deposit beta
Good quarter-on-quarter deposit beta 26% = 200 Deposit Beta ‘=> Cost of Deposits, excluding COs mmitective Fea Funds Rate 0.08% 0.22% raeve021 913172022 es02022 ‘93072022 Year-to-Date Deposit Beta is 16% MainStreetBancshares, Inc.
Slide 9: Non-interest income trending nicely
Non-interest income trending nicely Companerts of 2022 YTD Non ($000) $7493.86 ‘Service Charge Income $1810 CAGR: 30%? So113 Bank Owned Life insurance (@OLI) $754 mummy || L22nS8ep Fee Income S619 s40ez2 Mortgage Ongination Fees $339 $32 ‘ther Nor-ntrest Income 2st Sone ‘TotalNon-inerest income $3,7
Slide 10: Good operational efficiency
Good operational efficiency Effelency Raa ()!_—§ Total Equty | Tange Assets 36 1102 7395 2015 2018 2017 2018 2019 2020 2021 2022 2015 2016 2017 2018 2019 2020 2021 2022 MainStreetBancshares, Inc.
Slide 11: Good return metrics
Good return metrics [Core ROAA (2 2015 2016 2017 2018 2019 2020 2021 1.48 2022 Core ROATCE (3)! 1622 1038 1079 498 2015 2016 2017 2018 2019 2020 2021 2022
Slide 12: Good common share metrics
Good common share metrics EPSISe TRVPCS! & BVPCS (5) 2015 2018 2017 2018 2019 2020 2021 2022 2015 2016 2017 2018 2019 2020 2021 2022 MainStreetBancshares, Inc.
Slide 13: Consistent organic balance sheet growth
Consistent organic balance sheet growth CAGR: 23% Lifetime" Slide 13 MainStreetBancshares, Inc.
Slide 14: 10% growth in deposits year-to-date
10% growth in deposits year-to-date Total : Deposits: Mires $1.68 | Core deposits represent 71% of total deposits DDACAGR: 38.0%" Slide14 MainStreetBancshares, Inc.
Slide 15: 13% loan growth year-to-date
13% loan growth year-to-date | Gross Loans, less Reconciliation of Gross Loans through Sep. 30,2022 | _ Gross Loans PPP Net Loans - Beginning Balance Dec. 31,2021 $1,304 $1,206 + New Loans & Advances $422 $422 = Repayments $314 $258 + Defered Loan Fees $4 34 GrossLoans 973022 $1,466 $1,464 ———E——— e
Slide 16: Loan portfolio distribution
Loan portfolio distribution F Total Gross Loan My) $$ canoe Compastion a of 913022 CAGR: 23.7%! Total Loans: $1.46B 2016 ©2017-2018. 2019-020 ©2021 202208 = MainStreetBancshares, Inc
Slide 17: The Bank's lifetime performance in underwriting Investor CRE
The Bank's lifetime performance in underwriting Investor CRE includes more than 1,000 relationships and over $2 billion in loans originated. With Zero losses over the life of the bank (18.5 years). ely Internal limit is 3
Slide 18: Credit Quality is actively managed
Credit Quality is actively managed Lose Reserve? = Risk Financials ($000) Urioss Otero No rod Quaity Ratios NPtsLoans (9) 01 2.00 0.00 0.00 NPAasAssets (3) 08 905 0.00 9.00 Non Pertoxmeg Assats Nonsooral Loans 140 ° ° o ° Restucied Loses ° ° ° 0 ° Pus: OREO 4.180 ms 0 o ° Tota Non Parerming Asses 1.
Slide 19: Low-cost subordinated debt as capital
Low-cost subordinated debt as capital Debt Components Balance Sheet Outstanding Component Classification ($000)! InterestRate Date Callable Subordinated debt Liability $29,391 3.75% Apr. 15,2026 Subordinated debt Liability $42,755 4.00% Mar. 15, 2027 Total $72,146 3.90%? Represents 44% of the Holdin
Slide 20: AVENU 2022 financial performance
AVENU 2022 financial Benienmaniee Sli Balance Sheet & income Statement ‘Computer software $7,258 Totalassats $7,258 Nominterest-bearing deposits $67,138 Interest-bearing deposits $2301 Totaldeposis $69,499 Income Statement ($000) If Service charge Income $692 ‘ther income sar Totalincome 3739 Employ
Slide 21: Future-proofing
Future-proofing K 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 21 MainStreetBancshares, Inc
Slide 22: Banking delivered
Banking delivered Avenu offers the only embedded banking solution that connects you and your applications directly and seamlessly to a banking core, our banking core. Weare not a sponsor bank without our own technology, and we are not a middleware software company (aggregator) without our own bank.
Slide 23: Serving a community of innovation
Serving a community of innovation Our clients are fintechs, app developers, money movers, and entrepreneurs. They all have one thing in common, they are Innovating How Money Moves to solve real world issues and help communities thrive. Weare focused on community and on long-term relationships.
Slide 24: Feedback
Feedback One CEO, whose company is progressing into the Avenu sandbox, called our solution "revolutionary". He said he had yet to come across a bank that built a system from the ground-up that integrated customer identification, Know Your Customer (KYC), fraud, and Anti-Money Laundering (AML) tools
Slide 25: Avenu Organization Chart
Avenu Organization Chart ‘ToBotired Program Manager 1 Scrum Master 2 Business Analysts 3 Cloud Engineers 3 Microservices Developers: ‘1 Mobile App Developer 2 Quality Engineers 1 Senior Technical Product Manager 1 API Support Engineer 1 API Support Specialist MainStreetBancshares, In
Slide 26: See You There - We are Avenu
See You < We are Avenu There? A Booth 5031 OF . Booth 5031 AV AV 7 ti
Slide 27: Summary of Financial Information
Summary of Financial Information ar erst ncome 26954 43.836 S883 eterest Expense 47212686 1037 ‘Net tect come | 21482 91,169. 60496 Nonimerestincome 22783239 4.887 Realized Gas on Secures ° 0 5 0 4 1| ° 3 ° 4 0 Tota Revenue 2376034408 aaz98 S570 50645] wear] 1ase0 isa89 teas I7se5 Toaad Nonintrest E
Slide 28: Summary of Financial Information, continued
Summary of Financial Information, continued os oar 19 ts a 745 1038-1079 -««t0s4 1230] 1264] 103010281180 1289 8.3 TCE 745 103810791113 13.9] v47e] 1088 ©1083-1379 «151310 ROMA (Non-GAAP) or oor 1s9 108139 val aa ate tae ROME (Non-GAAP) 887 103810791084 12:36) 1263] 1030 1028118912891. -ROATCE (Non-
Slide 29: Performance against market
Performance against market _ -25% sd a z ” we a ” -28% MainStreetBancshares, Inc.
Slide 30: MainStreet Bancshares, Inc. external analytics
MainStreet Bancshares, Inc. external analytics “Reiterate BUY Rating on growing community bank in DC Metro with fintech expansion.” “We like the company's profile as a lender in Northern Virginia and the Metropolitan DC MSA, which has strong commercial activity and has historically been ‘recession r
Slide 31: Financial Highlights - Third Quarter, 2022
MainStreet Bancshares, Inc. Financial Highlights - Third Quarter, 2022
MainStreet Bancshares — Q3 2022 Earnings Presentation on 6ix