MainStreet Bancshares, Inc., Reports Solid Earnings for 3rd Quarter 2023

Net Income Totals $6.3 Million for the Quarter Ended September 30

FAIRFAX, Va., Oct. 23, 2023 /PRNewswire/ -- MainStreet Bancshares, Inc. (Nasdaq: MNSB & MNSBP), the holding company for MainStreet Bank, reported net income of $6.3 million for the quarter ended September 30, 2023, in line with expectations. Earnings per share for the year-to-date stand at $2.64. Cumulative net income for the calendar year reached $21.4 million, a 12.3% increase over the first nine months of 2022.

MainStreet Bancshares, Inc. Logo

Annualized returns through the first nine months included:

Return on Average Equity (ROAE):	13.80 %
Return on Average Assets (ROAA):	1.50 %
Net Interest Margin (NIM) (tax equivalent):	4.28 %
Efficiency Ratio:	55.06 %
Liquidity Coverage Ratio:	164 %
Core Deposit Ratio:	68 %
FDIC Insured Deposits / Total Deposits:	76 %
Allowance for Credit Losses (ACL):	1.01 %
Tangible Book Value per Common Share:	$23.00

"The Company continues to put up very strong performance metrics in spite of the rising interest rate environment," said Jeff W. Dick, Chairman and CEO of MainStreet Bancshares Inc. and MainStreet Bank.  "The team did an excellent job preparing the balance sheet for a rising rate environment leading up to the first quarter of 2022.  Since mid-2023, the team has been equally focused on neutralizing the balance sheet for a stable or slightly declining interest rate environment going forward."

"MainStreet Bank is a community bank built upon great relationships, and this continues to be a true testament to our financial strength. Our balance sheet continues to grow through the many thoughtful referrals from our existing customers and from our reputation in the markets we serve," said Abdul Hersiburane, President of MainStreet Bank.

ABOUT AVENU

Avenu, MainStreet Bank's fully integrated Software as a Service (SaaS) solution, identified its first client on October 18. SafariPay, via its global money transmittance service PaySii, expects its customers to maintain average balances of $4 million on the platform.

Avenu — Banking Delivered.  Avenu is the only embedded banking solution that connects our partners and their apps directly and seamlessly to a banking core — MainStreet Bank's banking core. We are not a sponsor bank without our own technology, and we are not a middleware software company (aggregator) without our own bank. We are Avenu, a leading financial technology company backed by an established community business bank in the heart of Washington, D.C.

Avenu — Serving a Community of Innovation.  Our clients are fintechs, application 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. We are focused on servicing our community and long-term business relationships.

ABOUT MAINSTREET BANK: MainStreet operates six branches in Herndon, Fairfax, McLean, Leesburg, Clarendon, and Washington, D.C. MainStreet Bank has 55,000 free ATMs and a fully integrated online and mobile banking solution. The Bank is not restricted by a conventional branching system, as it can offer business customers the ability to Put Our Bank in Your Office®. With robust and easy-to-use online business banking technology, MainStreet has "put our bank" in thousands of businesses in the metropolitan area.

MainStreet Bank has a robust line of business and professional lending products, including government contracting lines of credit, commercial lines and term loans, residential and commercial construction, and commercial real estate. MainStreet also works with the SBA to offer 7A and 504 lending solutions. From sophisticated cash management to enhanced mobile banking and instant-issue Debit Cards, MainStreet Bank is always looking for ways to improve our customer's experience.

MainStreet Bank was the first community bank in the Washington, D.C., metropolitan area to offer a full online business banking solution. MainStreet Bank was also the first bank headquartered in the Commonwealth of Virginia to offer CDARS – a solution that provides multi-million-dollar FDIC insurance. Further information on the Bank can be obtained by visiting its website at mstreetbank.com.

This release 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 release that are not historical facts are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Words such as "may," "will," "could," "should," "expect," "plan," "project," "intend," "anticipate," "believe," "estimate," "predict," "potential," "pursuant," "target," "continue," and similar expressions are intended to identify such forward-looking statements. Factors that could cause actual results to differ materially from management's projections, forecasts, estimates and expectations include: fluctuation in market rates of interest and loan and deposit pricing, adverse changes in the overall national economy as well as adverse economic conditions in our specific market areas, future impacts of the novel coronavirus (COVID-19) outbreak, maintenance and development of well-established and valued client relationships and referral source relationships, and acquisition or loss of key production personnel. We caution readers that the list of factors above is not exclusive. The forward-looking statements are made as of the date of this release, and we may not undertake steps to update the forward-looking statements to reflect the impact of any circumstances or events that arise after the date the forward-looking statements are made. In addition, our past results of operations are not necessarily indicative of future performance.

MainStreet Bancshares, Inc.
UNAUDITED CONSOLIDATED BALANCE SHEET INFORMATION
(In thousands)
		September 30, 2023				June 30, 2023				March 31, 2023				December 31, 2022*				September 30, 2022
ASSETS
Cash and cash equivalents
Cash and due from banks		$	44,912			$	67,700			$	225,334			$	48,931			$	50,636
Federal funds sold			76,271				30,341				—				81,669				54,098
Total cash and cash equivalents			121,183				98,041				225,334				130,600				104,734
Investment securities available for sale, at fair value			56,726				60,579				63,209				62,631				162,319
Investment securities held to maturity, at amortized cost, net of allowance for credit losses of $0 for all periods			17,565				17,590				17,616				17,642				17,670
Restricted equity securities, at amortized cost			20,619				20,304				22,436				24,325				16,436
Loans, net of allowance for credit losses of $15,626, $16,047, $15,435, $14,114, and $12,994, respectively			1,681,444				1,637,484				1,617,275				1,579,950				1,448,071
Premises and equipment, net			14,275				14,427				14,521				14,709				14,523
Accrued interest and other receivables			11,184				10,256				9,744				9,581				8,273
Computer software, net of amortization			13,373				12,266				10,559				9,149				7,258
Bank owned life insurance			38,035				37,763				37,503				37,249				36,996
Other assets			47,087				40,641				36,811				39,915				43,835
Total Assets		$	2,021,491			$	1,949,351			$	2,055,008			$	1,925,751			$	1,860,115
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Non-interest bearing deposits		$	394,859			$	388,992			$	487,875			$	550,690			$	566,016
Interest bearing demand deposits			76,423				71,308				100,522				80,099				93,695
Savings and NOW deposits			46,550				51,294				53,499				51,419				54,240
Money market deposits			461,398				380,500				260,316				222,540				254,190
Time deposits			703,960				701,289				730,076				608,141				585,783
Total deposits			1,683,190				1,593,383				1,632,288				1,512,889				1,553,924
Federal funds borrowed			—				30,000				60,696				—				—
Federal Home Loan Bank advances			—				—				45,000				100,000				—
Subordinated debt			72,543				72,444				72,344				72,245				72,146
Other liabilities			52,015				43,016				39,692				42,335				44,045
Total Liabilities			1,807,748				1,738,843				1,850,020				1,727,469				1,670,115
Stockholders' Equity:
Preferred stock			27,263				27,263				27,263				27,263				27,263
Common stock			29,188				29,177				29,185				28,736				28,728
Capital surplus			65,407				64,768				64,213				63,999				63,231
Retained earnings			102,694				97,646				91,991				86,830				80,534
Accumulated other comprehensive loss			(10,809)				(8,346)				(7,664)				(8,546)				(9,756)
Total Stockholders' Equity			213,743				210,508				204,988				198,282				190,000
Total Liabilities and Stockholders' Equity		$	2,021,491			$	1,949,351			$	2,055,008			$	1,925,751			$	1,860,115

*Derived from audited financial statements

 

MainStreet Bancshares, Inc.
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME INFORMATION
(In thousands, except share and per share data)
		Year-to-Date								Three Months Ended
		September 30, 2023				September 30, 2022				September 30, 2023				June 30, 2023				March 31, 2023				December 31, 2022				September 30, 2022
INTEREST INCOME:
Interest and fees on loans		$	85,336			$	54,900			$	29,750			$	28,855			$	26,731			$	23,972			$	20,261
Interest on investment securities
Taxable securities			1,384				1,136				459				407				518				467				378
Tax-exempt securities			797				796				268				265				264				262				261
Interest on federal funds sold			3,528				1,241				1,217				1,179				1,132				1,071				1,013
Total interest income			91,045				58,073				31,694				30,706				28,645				25,772				21,913
INTEREST EXPENSE:
Interest on interest bearing demand deposits			834				345				240				251				343				256				175
Interest on savings and NOW deposits			400				122				145				147				108				81				43
Interest on money market deposits			8,285				766				4,156				2,926				1,203				781				496
Interest on time deposits			18,747				5,236				7,526				7,077				4,144				2,966				2,275
Interest on federal funds borrowed			274				—				35				201				38				—				—
Interest on Federal Home Loan Bank advances			1,105				83				186				13				906				264				—
Interest on subordinated debt			2,460				2,108				828				820				812				828				828
Total interest expense			32,105				8,660				13,116				11,435				7,554				5,176				3,817
Net interest income			58,940				49,413				18,578				19,271				21,091				20,596				18,096
Provision for credit losses			1,176				1,280				255				638				283				1,118				—
Net interest income after provision for credit losses			57,764				48,133				18,323				18,633				20,808				19,478				18,096
NON-INTEREST INCOME:
Deposit account service charges			1,639				1,810				514				535				590				610				601
Bank owned life insurance income			786				755				272				259				255				253				254
Loan swap fee income			—				619				—				—				—				—				518
Net gain on held-to-maturity securities			—				4				—				—				—				—				—
Net loss on sale of loans			—				(168)				—				—				—				—				(211)
Other non-interest income			352				753				177				16				158				196				186
Total other income			2,777				3,773				963				810				1,003				1,059				1,348
NON-INTEREST EXPENSES:
Salaries and employee benefits			21,139				17,025				6,924				6,595				7,621				6,775				5,874
Furniture and equipment expenses			1,983				2,076				713				772				498				710				760
Advertising and marketing			2,072				1,684				577				698				797				620				704
Occupancy expenses			1,287				1,093				375				426				486				378				400
Outside services			1,691				1,545				697				504				490				529				611
Administrative expenses			703				658				277				211				215				214				253
Other operating expenses			5,109				4,268				1,866				1,646				1,596				1,481				1,291
Total non-interest expenses			33,984				28,349				11,429				10,852				11,703				10,707				9,893
Income before income tax expense			26,557				23,557				7,857				8,591				10,108				9,830				9,551
Income tax expense			5,119				4,462				1,516				1,645				1,957				2,252				1,808
Net income			21,438				19,095				6,341				6,946				8,151				7,578				7,743
Preferred stock dividends			1,617				1,617				539				539				539				539				539
Net income available to common shareholders		$	19,821			$	17,478			$	5,802			$	6,407			$	7,612			$	7,039			$	7,204
Net income per common share, basic and diluted		$	2.64			$	2.31			$	0.77			$	0.85			$	1.01			$	0.95			$	0.97
Weighted average number of common shares, basic and diluted			7,521,426				7,561,567				7,524,332				7,522,764				7,517,213				7,433,607				7,463,719

 

MainStreet Bancshares, Inc.
UNAUDITED LOAN, DEPOSIT
AND BORROWING DETAIL
(In thousands)
		September 30, 2023								June 30, 2023								September 30, 2022								Percentage Change
		$ Amount				% of Total				$ Amount				% of Total				$ Amount				% of Total				Last 3 Mos				Last 12 Mos
LOANS:
Construction and land development loans		$	426,698				25.1	%		$	421,277				25.4	%		$	366,689				25.0	%			1.3	%			16.4	%
Residential real estate loans			462,935				27.2	%			410,550				24.7	%			373,056				25.4	%			12.8	%			24.1	%
Commercial real estate loans			734,615				43.1	%			727,772				43.9	%			638,110				43.5	%			0.9	%			15.1	%
Commercial and industrial loans			73,855				4.3	%			93,604				5.6	%			74,482				5.1	%			-21.1	%			-0.8	%
Consumer loans			4,598				0.3	%			5,750				0.4	%			13,628				1.0	%			-20.0	%			-66.3	%
Total Gross Loans		$	1,702,701				100.0	%		$	1,658,953				100.0	%		$	1,465,965				100.0	%			2.6	%			16.1	%
Less: Allowance for credit losses			(15,626)								(16,047)								(12,994)
Net deferred loan fees			(5,631)								(5,422)								(4,900)
Net Loans		$	1,681,444							$	1,637,484							$	1,448,071
DEPOSITS:
Non-interest bearing deposits		$	394,859				23.5	%		$	388,992				24.4	%		$	566,016				36.4	%			1.5	%			-30.2	%
Interest-bearing deposits:
Demand deposits			76,423				4.5	%			71,308				4.5	%			93,695				6.0	%			7.2	%			-18.4	%
Savings and NOW deposits			46,550				2.8	%			51,294				3.2	%			54,240				3.5	%			-9.2	%			-14.2	%
Money market accounts			461,398				27.4	%			380,500				23.9	%			254,190				16.4	%			21.3	%			81.5	%
Certificates of deposit $250,000 or more			432,440				25.7	%			406,583				25.5	%			371,739				23.9	%			6.4	%			16.3	%
Certificates of deposit less than $250,000			271,520				16.1	%			294,706				18.5	%			214,044				13.8	%			-7.9	%			26.9	%
Total Deposits		$	1,683,190				100.0	%		$	1,593,383				100.0	%		$	1,553,924				100.0	%			5.6	%			8.3	%
BORROWINGS:
Federal funds borrowed			—				0.0	%			30,000				29.3	%			—				0.0	%			-100.0	%			0.0	%
Subordinated debt			72,543				100.0	%			72,444				70.7	%			72,146				100.0	%			0.1	%			0.6	%
Total Borrowings		$	72,543				100.0	%		$	102,444				100.0	%		$	72,146				100.0	%			-29.2	%			0.6	%
Total Deposits and Borrowings		$	1,755,733							$	1,695,827							$	1,626,070								3.5	%			8.0	%
Core customer funding sources (1)		$	1,144,513				65.2	%		$	1,111,523				65.5	%		$	1,156,862				71.1	%			3.0	%			-1.1	%
Brokered and listing service sources (2)			538,677				30.7	%			481,860				28.4	%			397,062				24.5	%			11.8	%			35.7	%
Federal funds borrowed			—				0.0	%			30,000				1.8	%			—				0.0	%			-100.0	%			#DIV/0!
Subordinated debt (3)			72,543				4.1	%			72,444				4.3	%			72,146				4.4	%			0.1	%			0.6	%
Total Funding Sources		$	1,755,733				100.0	%		$	1,695,827				100.0	%		$	1,626,070				100.0	%			3.5	%			8.0	%

(1)	Includes ICS, CDARS, and reciprocal deposits maintained by customers, which represent sweep accounts tied to customer operating accounts
(2)	Consists of certificates of deposit (CD) through multiple listing services and multiple brokered deposit services, as well as ICS and CDARS one-way certificates of deposit and regional money market accounts
(3)	Subordinated debt obligation qualifies as Tier 2 capital at the holding company and Tier 1 capital at the Bank

 

MainStreet Bancshares, Inc.
UNAUDITED AVERAGE BALANCE SHEETS, INTEREST AND RATES
(In thousands)
		For the three months ended September 30, 2023												For the three months ended September 30, 2022
		Average Balance				Interest Income/ Expense (3)(4)				Average Yields/ Rate (annualized) (3)(4)				Average Balance				Interest Income/ Expense (3)(4)				Average Yields/ Rate (annualized) (3)(4)
ASSETS:
Interest-earning assets:
Loans (1)(2)		$	1,665,474			$	29,750				7.09	%		$	1,446,679			$	20,261				5.56	%
Securities:
Taxable			67,513				459				2.70	%			73,914				378				2.03	%
Tax-exempt			37,812				339				3.56	%			38,074				330				3.44	%
Federal funds and interest-bearing deposits			94,808				1,217				5.09	%			182,331				1,013				2.20	%
Total interest-earning assets		$	1,865,607			$	31,765				6.76	%		$	1,740,998			$	21,982				5.01	%
Other assets			63,883												61,479
Total assets		$	1,929,490											$	1,802,477
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Interest-bearing demand deposits		$	77,047			$	240				1.24	%		$	93,569			$	175				0.74	%
Savings and NOW deposits			48,594				145				1.18	%			55,100				43				0.31	%
Money market deposit accounts			413,710				4,156				3.99	%			257,091				496				0.77	%
Time deposits			700,405				7,526				4.26	%			575,832				2,275				1.57	%
Total interest-bearing deposits		$	1,239,756			$	12,067				3.86	%		$	981,592			$	2,989				1.21	%
Federal funds borrowed			2,501				35				5.55	%			2				—				—
FHLB advances			13,478				186				5.48	%			—				—				—
Subordinated debt			72,504				828				4.53	%			72,107				828				4.56	%
Total interest-bearing liabilities		$	1,328,239			$	13,116				3.92	%		$	1,053,701			$	3,817				1.44	%
Demand deposits and other liabilities			388,004												558,337
Total liabilities		$	1,716,243											$	1,612,038
Stockholders' Equity			213,247												190,439
Total Liabilities and Stockholders' Equity		$	1,929,490											$	1,802,477
Interest Rate Spread											2.84	%											3.57	%
Net Interest Income						$	18,649											$	18,165
Net Interest Margin											3.97	%											4.14	%

(1)	Includes loans classified as non-accrual
(2)	Total loan interest income includes amortization of deferred loan fees, net of deferred loan costs
(3)	Income and yields for all periods presented are reported on a tax-equivalent basis using the federal statutory rate of 21%
(4)	Refer to Appendix for reconciliation of non-GAAP measures

 

MainStreet Bancshares, Inc.
UNAUDITED AVERAGE BALANCE SHEETS, INTEREST AND RATES
(In thousands)
		For the nine months ended September 30, 2023												For the nine months ended September 30, 2022
		Average Balance				Interest Income/ Expense (3)(4)				Average Yields/ Rate (annualized) (3)(4)				Average Balance				Interest Income/ Expense (3)(4)				Average Yields/ Rate (annualized) (3)(4)
ASSETS:
Interest-earning assets:
Loans (1)(2)		$	1,640,460			$	85,336				6.95	%		$	1,420,013			$	54,900				5.17	%
Securities:
Taxable			69,260				1,384				2.67	%			73,496				1,136				2.07	%
Tax-exempt			37,876				1,009				3.56	%			38,703				1,008				3.48	%
Federal funds and interest-bearing deposits			99,004				3,528				4.76	%			121,832				1,241				1.36	%
Total interest-earning assets		$	1,846,600			$	91,257				6.61	%		$	1,654,044			$	58,285				4.71	%
Other assets			62,832												71,361
Total assets		$	1,909,432											$	1,725,405
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Interest-bearing demand deposits		$	78,018			$	834				1.43	%		$	86,836			$	345				0.53	%
Savings and NOW deposits			50,382				400				1.06	%			66,714				122				0.24	%
Money market deposit accounts			328,037				8,285				3.38	%			252,992				766				0.40	%
Time deposits			699,377				18,747				3.58	%			511,242				5,236				1.37	%
Total interest-bearing deposits		$	1,155,814			$	28,266				3.27	%		$	917,784			$	6,469				0.94	%
Federal funds borrowed			6,878				274				5.33	%			2				—				—
FHLB advances			30,531				1,105				4.84	%			24,011				83				0.46	%
Subordinated debt			72,405				2,460				4.54	%			62,807				2,108				4.49	%
Total interest-bearing liabilities		$	1,265,628			$	32,105				3.39	%		$	1,004,604			$	8,660				1.15	%
Demand deposits and other liabilities			436,157												531,115
Total liabilities		$	1,701,785											$	1,535,719
Stockholders' Equity			207,647												189,686
Total Liabilities and Stockholders' Equity		$	1,909,432											$	1,725,405
Interest Rate Spread											3.22	%											3.56	%
Net Interest Income						$	59,152											$	49,625
Net Interest Margin											4.28	%											4.01	%

(1)	Includes loans classified as non-accrual
(2)	Total loan interest income includes amortization of deferred loan fees, net of deferred loan costs
(3)	Income and yields for all periods presented are reported on a tax-equivalent basis using the federal statutory rate of 21%
(4)	Refer to Appendix for reconciliation of non-GAAP measures

 

MainStreet Bancshares, Inc.
UNAUDITED SUMMARY FINANCIAL DATA
(Dollars in thousands except per share data)
		At or For the Three Months Ended								At or For the Nine Months Ended
		September 30,								September 30,
		2023				2022				2023				2022
Per share Data and Shares Outstanding
Earnings per common share (basic and diluted)		$	0.77			$	0.97			$	2.64			$	2.31
Book value per common share		$	24.78			$	21.92			$	24.78			$	21.92
Tangible book value per common share(2)		$	23.00			$	20.94			$	23.00			$	20.94
Weighted average common shares (basic and diluted)			7,524,332				7,463,719				7,521,426				7,561,567
Common shares outstanding at end of period			7,524,887				7,425,432				7,524,887				7,425,432
Performance Ratios
Return on average assets (annualized)			1.30	%			1.70	%			1.50	%			1.48	%
Return on average equity (annualized)			11.80	%			16.13	%			13.80	%			13.46	%
Return on average common equity (annualized)			12.38	%			17.52	%			14.69	%			14.39	%
Yield on earning assets (FTE) (2) (annualized)			6.76	%			5.01	%			6.61	%			4.71	%
Cost of interest bearing liabilities (annualized)			3.92	%			1.44	%			3.39	%			1.15	%
Net interest spread (FTE)(2)			2.84	%			3.57	%			3.22	%			3.56	%
Net interest margin (FTE)(2) (annualized)			3.97	%			4.14	%			4.28	%			4.01	%
Noninterest income as a percentage of average assets (annualized)			0.20	%			0.30	%			0.19	%			0.29	%
Noninterest expense to average assets (annualized)			2.35	%			2.18	%			2.38	%			2.20	%
Efficiency ratio(3)			58.49	%			50.88	%			55.06	%			53.30	%
Asset Quality
Allowance for credit losses (ACL)
Beginning balance, ACL - loans		$	16,047			$	12,982			$	14,114			$	11,697
Add: recoveries			1				12				14				17
Less: charge-offs			(324)				—				(331)				—
Add: provision for (recovery of) credit losses			(98)				—				934				1,280
Add: current expected credit losses, nonrecurring adoption			—				—				895				—
Ending balance, ACL - loans		$	15,626			$	12,994			$	15,626			$	12,994
Beginning balance, reserve for unfunded commitment (RUC)		$	1,199			$	—			$	—			$	—
Add: current expected credit losses, nonrecurring adoption			—				—				1,310				—
Add: provision for unfunded commitments			353				—				374				—
Less: recovery of unfunded commitments			—				—				(132)				—
Ending balance, RUC		$	1,552			$	—			$	1,552			$	—
Total allowance for credit losses		$	17,178			$	12,994			$	17,178			$	12,994
Allowance for credit losses on loans to total gross loans			0.92	%			0.89	%			0.92	%			0.89	%
Allowance for credit losses to total gross loans			1.01	%			0.89	%			1.01	%			0.89	%
Allowance for credit losses on loans to non-performing assets			48.08				N/A				48.08				N/A
Net charge-offs (recoveries) to average gross loans (annualized)			0.08	%			0.00	%			0.02	%			0.00	%
Concentration Ratios
Commercial real estate loans to total capital (4)			372.48	%			370.05	%			372.48	%			370.05	%
Construction loans to total capital (5)			138.79	%			137.51	%			138.79	%			137.51	%
Non-performing Assets
Loans 30-89 days past due to total gross loans			0.05	%			0.17	%			0.05	%			0.17	%
Loans 90 days past due to total gross loans			0.00	%			0.02	%			0.00	%			0.02	%
Non-accrual loans to total gross loans			0.02	%			0.00	%			0.02	%			0.00	%
Other real estate owned		$	—			$	—			$	—			$	—
Non-performing assets		$	325			$	—			$	325			$	—
Non-performing assets to total assets			0.02	%			0.00	%			0.02	%			0.00	%
Regulatory Capital Ratios (Bank only) (1)
Total risk-based capital ratio			16.79	%			16.39	%			16.79	%			16.39	%
Tier 1 risk-based capital ratio			15.83	%			15.59	%			15.83	%			15.59	%
Leverage ratio			14.81	%			14.01	%			14.81	%			14.01	%
Common equity tier 1 ratio			15.83	%			15.59	%			15.83	%			15.59	%
Other information
Closing stock price		$	20.54			$	22.81			$	20.54			$	22.81
Tangible equity / tangible assets (2)			9.98	%			9.86	%			9.98	%			9.86	%
Average tangible equity / average tangible assets (2)			10.46	%			10.26	%			10.34	%			10.76	%
Number of full time equivalent employees			185				157				185				157
Number of full service branch offices			6				6				6				6

(1)	Regulatory capital ratios as of September 30, 2023 are preliminary
(2)	Refer to Appendix for reconciliation of non-GAAP measures
(3)	Efficiency ratio is calculated as non-interest expense as a percentage of net interest income and non-interest income
(4)	Commercial real estate includes only non-owner occupied and construction loans as a percentage of Bank capital
(5)	Construction loans as a percentage of Bank capital

 

MainStreet Bancshares, Inc.
Unaudited Reconciliation of Certain Non-GAAP Financial Measures
(Dollars In thousands)
		For the three months ended September 30,								For the nine months ended September 30,
		2023				2022				2023				2022
Net interest margin (FTE)
Net interest income (GAAP)		$	18,578			$	18,096			$	58,940			$	49,413
FTE adjustment on tax-exempt securities			71				69				212				212
Net interest income (FTE) (non-GAAP)			18,649				18,165				59,152				49,625
Average interest earning assets			1,865,607				1,740,998				1,846,600				1,654,044
Net interest margin (GAAP)			3.95	%			4.12	%			4.27	%			3.99	%
Net interest margin (FTE) (non-GAAP)			3.97	%			4.14	%			4.28	%			4.01	%
		As of September 30,								As of September 30,
		2023				2022				2023				2022
Stockholders equity, adjusted
Total stockholders equity (GAAP)		$	213,743			$	190,000			$	213,743			$	190,000
Less: intangible assets			13,373				7,258				13,373				7,258
Tangible stockholders equity (non-GAAP)			200,370				182,742			$	200,370			$	182,742
Less: preferred stock			27,263				27,263				27,263				27,263
Tangible common stockholders equity (non-GAAP)			173,107				155,479				173,107				155,479
Common shares outstanding			7,524,887				7,425,432				7,524,887				7,425,432
Tangible book value per common share (non-GAAP)		$	23.00			$	20.94			$	23.00			$	20.94
		As of September 30,								As of September 30,
		2023				2022				2023				2022
Total assets, adjusted
Total assets (GAAP)		$	2,021,491			$	1,860,115			$	2,021,491			$	1,860,115
Less: intangible assets			(13,373)				(7,258)				(13,373)				(7,258)
Total tangible assets (non-GAAP)			2,008,118				1,852,857				2,008,118				1,852,857
		For the three months ended September 30,								For the nine months ended September 30,
		2023				2022				2023				2022
Average stockholders equity, adjusted
Total average stockholders equity (GAAP)		$	213,247			$	190,439			$	207,647			$	189,686
Less: average intangible assets			(12,841)				(6,192)				(11,345)				(4,570)
Total average tangible stockholders equity (non-GAAP)			200,406				184,247				196,302				185,116
		For the three months ended September 30,								For the nine months ended September 30,
		2023				2022				2023				2022
Average assets, adjusted
Total average average assets (GAAP)		$	1,929,490			$	1,802,477			$	1,909,432			$	1,725,405
Less: average intangible assets			(12,841)				(6,192)				(11,345)				(4,570)
Total average tangible assets (non-GAAP)			1,916,649				1,796,285				1,898,087				1,720,835

 

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Director of Corporate Communications
Desk (703) 481-4599
Mobile (202) 468-3184

 

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SOURCE MainStreet Bancshares, Inc.