MainStreet Bancshares Achieves Record Results for 2022

Rhea-AI Summary

MainStreet Bancshares reported a record net income of $26.7 million for 2022, marking a 20.3% increase from the previous year. The return on average equity stood at 13.98% and net interest margin (NIM) reached 4.19%, up 84 basis points year-over-year. Net interest income also rose to $70 million, a 30.8% increase. The loan portfolio grew 17.8% to $1.58 billion, with zero nonperforming assets. Total assets increased 16.9% to $1.93 billion. The efficiency ratio improved to 52%. The company made significant strides with its Avenu™ banking software, onboarding its first client.

Positive

• Net income increased by 20.3% to $26.7 million.
• Net interest income rose 30.8% to $70 million.
• Loan portfolio grew 17.8% to $1.58 billion with zero nonperforming assets.
• Total assets increased 16.9% to $1.93 billion.
• Efficiency ratio improved to 52%.

Negative

• None.

Company's Net Income Climbs 20% to $26.7 Million; NIM Reaches 4.19%

FAIRFAX, Va., Jan. 23, 2023 /PRNewswire/ -- MainStreet Bancshares, Inc. (Nasdaq: MNSB & MNSBP), the holding company for MainStreet Bank, reported record net income of $26.7 million for 2022, a 20.3% increase from a year earlier. Year-end results represent:

• 13.98% return on average equity
• 1.53% return on average assets
• 4.19% net interest margin
• $3.26 earnings per common share (basic and diluted)
• $21.75 tangible book value per common share

There is no doubt that 2022 was a banner year for the Company.

"There is no doubt that 2022 was a banner year for the Company," said Jeff W. Dick, Chairman and CEO of MainStreet Bancshares Inc. and MainStreet Bank. "Quarter to quarter, we set performance records in nearly every activity and metric. We achieved this while maintaining our strong focus on credit quality and while building Avenu™, our innovative embedded banking software solution. The markets rewarded our upward momentum, efficiency, and focus on innovation with solid interest in our shares and improved valuations."

Net interest income reached $70 million in 2022, up 30.8% from the previous year's $53.5 million. As the Federal Reserve undertook seven interest rate increases in 2022, MainStreet Bank benefited from having an asset-sensitive balance sheet. This drove the average net interest margin (NIM) higher by 84 basis points to 4.19% for the year ended December 31, 2022, versus 3.35% a year earlier. On a quarterly basis, the NIM widened to 4.70% in the fourth quarter of 2022, up from 3.49% in the prior year's fourth quarter.

"We came into 2022 extremely well prepared for the interest rate hikes that materialized," said Thomas J. Chmelik, Chief Financial Officer of MainStreet Bancshares Inc. and MainStreet Bank. "As we enter 2023, we anticipate fewer and smaller rate hikes as the Fed makes progress toward dampening inflation, and this should yield somewhat more level interest rates this year. We are now taking steps to position our balance sheet accordingly." He noted that the level of Accumulated Other Comprehensive Income (AOCI) for the Company remains low, at -4.3% of total capital.

The loan portfolio grew 17.8% to $1.58 billion in 2022, up from $1.34 billion at the end of 2021. Loan quality remained exceptional, with zero nonperforming assets. Total deposits climbed 7% to $1.51 billion, up from $1.41 billion at the end of 2021. Non-interest-bearing deposits represent 36.4% of the total, and 69% of total deposits are core deposits. The bank's total assets grew 16.9% to reach $1.93 billion at year-end 2022, versus $1.65 billion a year earlier.

"We continue to experience solid commercial loan demand and deposit growth in our DC Metro market, and loan demand was particularly brisk in the fourth quarter," said Abdul Hersiburane, President of MainStreet Bank. "Our local economy is supported by a technologically advanced workforce and a large and steady federal employment base, and these factors mitigate the effects of any slowdown. We remain encouraged by the opportunities that we see to serve our community's growing businesses and organizations. Because we maintain rigorous underwriting standards, our credit quality remains pristine."

The Company's efficiency ratio improved to 52% for the year, from 55% at the end of 2021. This improvement occurred even as the Company was making significant investments in Avenu™, with the hiring process accelerating as the subsidiary moves toward being fully operational in 2023.

Avenu™ Makes Major Strides, Onboards First Client
Avenu™ continues to make strides and has onboarded its first customer into its sandbox. In recent weeks Avenu™ has stood up its production site and is in the process of finalizing vendor certifications and conducting end-to-end testing. Avenu™ connects partners and their apps directly and seamlessly to MainStreet Bank's banking core. These developments bring Avenu™ several steps closer to its objective of accelerating MainStreet Bank's deposit growth to support expanded lending.

"As technology evolves, consumers expect to be able to conduct transactions seamlessly using apps offered by communities they are part of and merchants they patronize regularly," said Todd Youngren, president of Avenu™. "We created Avenu™ to be a gateway to the fast, simple, secure payments that our clients' end users demand, and we are excited to 'go live' with our first client."

Chairman and CEO Jeff W. Dick elaborated: "In creating Avenu™, we sought to ensure that our partners and their consumers have a flawless experience with the banking services we provide them. Our emphasis on getting compliance right is critical. Our innovative approach ensures that our partners can connect to the core system of a reliable bank with well-honed instincts about regulatory compliance and a clear line of sight into any emerging risks."

ABOUT AVENU™
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.

Contact: Debra Cope
Director of Corporate Communications
(703) 481-4599

 

UNAUDITED CONSOLIDATED BALANCE SHEET INFORMATION (In thousands)
		December 31, 2022				September 30, 2022				June 30, 2022				March 31, 2022				December 31, 2021
ASSETS
Cash and cash equivalents
Cash and due from banks		$	48,931			$	50,636			$	55,636			$	63,986			$	61,827
Federal funds sold			81,669				54,098				47,013				37,756				31,372
Total cash and cash equivalents			130,600				104,734				102,649				101,742				93,199
Investment securities available for sale, at fair value			62,631				162,319				143,240				123,802				99,913
Investment securities held to maturity, at carrying value			17,642				17,670				17,698				18,769				20,349
Restricted equity securities, at cost			24,325				16,436				16,485				17,209				15,609
Loans, net of allowance for loan losses of $14,114, $12,994, $12,982,$12,500, and $11,697, respectively			1,579,950				1,448,071				1,416,875				1,413,238				1,341,760
Premises and equipment, net			14,709				14,523				14,756				14,833				14,863
Other real estate owned, net			—				—				—				—				775
Accrued interest and other receivables			9,581				8,273				7,313				6,980				7,701
Computer software, net of amortization			9,149				7,258				4,956				3,906				2,493
Bank owned life insurance			37,249				36,996				36,742				36,492				36,241
Other assets			39,915				43,835				32,665				24,777				14,499
Total Assets		$	1,925,751			$	1,860,115			$	1,793,379			$	1,761,748			$	1,647,402
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Non-interest bearing deposits		$	550,690			$	566,016			$	535,591			$	514,160			$	530,678
Interest bearing DDA deposits			80,099				93,695				99,223				76,286				69,232
Savings and NOW deposits			51,419				54,240				58,156				81,817				85,175
Money market deposits			222,540				254,190				231,207				301,842				267,730
Time deposits			608,141				585,783				575,950				460,839				459,148
Total deposits			1,512,889				1,553,924				1,500,127				1,434,944				1,411,963
Federal Home Loan Bank advances and other borrowings			100,000				—				—				40,000				—
Subordinated debt			72,245				72,146				72,047				71,955				29,294
Other liabilities			42,335				44,045				32,801				26,053				17,357
Total Liabilities			1,727,469				1,670,115				1,604,975				1,572,952				1,458,614
Stockholders' Equity:
Preferred stock			27,263				27,263				27,263				27,263				27,263
Common stock			28,736				28,728				29,178				29,642				29,466
Capital surplus			63,999				63,231				64,822				66,798				67,668
Retained earnings			86,830				80,534				73,702				68,691				64,194
Accumulated other comprehensive income (loss)			(8,546)				(9,756)				(6,561)				(3,598)				197
Total Stockholders' Equity			198,282				190,000				188,404				188,796				188,788
Total Liabilities and Stockholders' Equity		$	1,925,751			$	1,860,115			$	1,793,379			$	1,761,748			$	1,647,402

 

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME INFORMATION (In thousands, except share and per share data)
		Year-to-Date								Three Months Ended
		December 31, 2022				December 31, 2021				December 31, 2022				September 30, 2022				June 30, 2022				March 31, 2022				December 31, 2021
INTEREST INCOME:
Interest and fees on loans		$	78,872			$	61,743			$	23,972			$	20,261			$	17,954			$	16,685			$	15,532
Interest on investment securities
Taxable securities			1,603				1,262				467				378				401				357				327
Tax-exempt securities			1,058				1,060				262				261				263				272				283
Interest on federal funds sold			2,312				134				1,071				1,013				195				34				61
Total interest income			83,845				64,199				25,772				21,913				18,813				17,348				16,203
INTEREST EXPENSE:
Interest on interest bearing DDA deposits			601				229				256				175				105				65				59
Interest on savings and NOW deposits			203				165				81				43				42				37				38
Interest on money market deposits			1,547				772				781				496				151				119				127
Interest on time deposits			8,202				7,613				2,966				2,275				1,530				1,431				1,574
Interest on Federal Home Loan Bank advances and other borrowings			347				—				264				—				52				31				—
Interest on subordinated debt			2,936				1,884				828				828				812				468				539
Total interest expense			13,836				10,663				5,176				3,817				2,692				2,151				2,337
Net interest income			70,009				53,536				20,596				18,096				16,121				15,197				13,866
Provision for (recovery of) loan losses			2,398				(1,175)				1,118				—				480				800				295
Net interest income after provision for (recovery of) loan losses			67,611				54,711				19,478				18,096				15,641				14,397				13,571
NON-INTEREST INCOME:
Deposit account service charges			2,420				2,426				610				601				597				611				624
Bank owned life insurance income			1,008				900				253				254				250				251				253
Loan swap fee income			619				83				—				518				101				—				83
Net gain on held-to-maturity securities			4				6				—				—				4				—				3
Net gain (loss) on sale of loans			(168)				847				—				(211)				—				43				413
Other non-interest income			951				1,848				196				186				312				257				247
Total other income			4,834				6,110				1,059				1,348				1,264				1,162				1,623
NON-INTEREST EXPENSES:
Salaries and employee benefits			23,801				19,305				6,775				5,874				5,604				5,548				5,029
Furniture and equipment expenses			2,786				2,468				710				760				659				657				726
Advertising and marketing			2,304				1,565				620				704				574				406				450
Occupancy expenses			1,471				1,541				378				400				352				341				449
Outside services			2,075				908				529				611				567				368				485
Administrative expenses			872				685				214				253				195				210				192
Other operating expenses			5,748				6,393				1,481				1,291				1,543				1,433				1,389
Total non-interest expenses			39,057				32,865				10,707				9,893				9,494				8,963				8,720
Income before income tax expense			33,388				27,956				9,830				9,551				7,411				6,596				6,474
Income tax expense			6,714				5,785				2,252				1,808				1,481				1,173				1,660
Net income			26,674				22,171				7,578				7,743				5,930				5,423				4,814
Preferred stock dividends			2,156				2,156				539				539				539				539				539
Net income available to common shareholders		$	24,518			$	20,015			$	7,039			$	7,204			$	5,391			$	4,884			$	4,275
Net income per common share, basic and diluted		$	3.26			$	2.65			$	0.95			$	0.97			$	0.71			$	0.64			$	0.56
Weighted average number of common shares, basic and diluted			7,529,259				7,595,781				7,433,607				7,463,719				7,575,484				7,647,519				7,595,062

 

UNAUDITED LOAN, DEPOSIT AND BORROWING DETAIL (In thousands)
		December 31, 2022								September 30, 2022								December 31, 2021								Percentage Change
		$ Amount				% of Total				$ Amount				% of Total				$ Amount				% of Total				Last 3 Mos				Last 12 Mos
LOANS:
Construction and land development loans		$	393,783				24.6	%		$	366,689				25.0	%		$	337,173				24.8	%			7.4	%			16.8	%
Residential real estate loans			394,394				24.7	%			373,056				25.4	%			300,390				22.1	%			5.7	%			31.3	%
Commercial real estate loans			700,728				43.8	%			638,110				43.5	%			534,187				39.3	%			9.8	%			31.2	%
Commercial industrial loans - Other			97,351				6.1	%			74,482				5.1	%			164,014				12.1	%			30.7	%			-40.6	%
Consumer loans			13,336				0.8	%			13,628				1.0	%			23,171				2.3	%			-2.1	%			-42.4	%
Total Gross Loans		$	1,599,592				100.0	%		$	1,465,965				100.0	%		$	1,358,935				100.0	%			9.1	%			17.7	%
Less: Allowance for loan losses			(14,114)								(12,994)								(11,697)
Net deferred loan fees			(5,528)								(4,900)								(5,478)
Net Loans		$	1,579,950							$	1,448,071							$	1,341,760
DEPOSITS:
Non-interest bearing demand deposits		$	550,690				36.4	%		$	566,016				36.4	%		$	530,678				37.6	%			-2.7	%			3.8	%
Interest-bearing demand deposits:
Demand deposits			80,099				5.3	%			93,695				6.0	%			69,232				4.9	%			-14.5	%			15.7	%
Savings and NOW deposits			51,419				3.4	%			54,240				3.5	%			85,175				6.0	%			-5.2	%			-39.6	%
Money market accounts			222,540				14.7	%			254,190				16.4	%			267,730				19.0	%			-12.5	%			-16.9	%
Certificates of deposit $250,000 or more			370,005				24.5	%			371,739				23.9	%			285,395				20.2	%			-0.5	%			29.6	%
Certificates of deposit less than $250,000			238,136				15.7	%			214,044				13.8	%			173,753				13.4	%			11.3	%			37.1	%
Total Deposits		$	1,512,889				100.0	%		$	1,553,924				100.0	%		$	1,411,963				100.0	%			-2.6	%			7.1	%
BORROWINGS:
Federal Home Loan Bank advances			100,000				58.1	%			—				0.0	%			—				—				100.0	%			0.0	%
Subordinated debt			72,245				41.9	%			72,146				100.0	%			29,294				100.0	%			0.1	%			146.6	%
Total Borrowings		$	172,245				100.0	%		$	72,146				100.0	%		$	29,294				100.0	%			138.7	%			488.0	%
Total Deposits and Borrowings		$	1,685,134							$	1,626,070							$	1,441,257								3.6	%			16.9	%
Core customer funding sources (1)		$	1,157,573				68.7	%		$	1,156,862				71.1	%		$	1,108,177				76.9	%			0.1	%			4.5	%
Brokered and listing service sources (2)			355,316				21.1	%			397,062				24.5	%			303,786				21.1	%			-10.5	%			17.0	%
Federal Home Loan Bank advances			100,000				5.9	%			—				0.0	%			—				—				100.0	%			0.0	%
Subordinated debt (3)			72,245				4.3	%			72,146				4.4	%			29,294				2.0	%			0.1	%			146.6	%
Total Funding Sources		$	1,685,134				100.0	%		$	1,626,070				100.0	%		$	1,441,257				100.0	%			3.6	%			16.9	%

 

(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

 

UNAUDITED AVERAGE BALANCE SHEETS, INTEREST AND RATES (In thousands)
		For the three months ended December 31, 2022												For the three months ended December 31, 2021
		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)		$	1,510,087			$	23,972				6.30	%		$	1,277,828			$	15,532				4.82	%
Securities:
Taxable			70,776				467				2.62	%			76,776				327				1.69	%
Tax-exempt			38,007				332				3.46	%			38,936				358				3.65	%
Federal funds and interest-bearing deposits			124,865				1,071				3.40	%			192,442				61				0.13	%
Total interest earning assets		$	1,743,735			$	25,842				5.88	%		$	1,585,982			$	16,278				4.07	%
Other assets			55,559												87,072
Total assets		$	1,799,294											$	1,673,054
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Interest-bearing demand deposits		$	81,724			$	256				1.24	%		$	69,532			$	59				0.34	%
Savings and NOW deposits			53,570				81				0.60	%			82,048				38				0.18	%
Money market deposit accounts			213,530				781				1.45	%			296,063				127				0.17	%
Time deposits			613,262				2,966				1.92	%			466,190				1,574				1.34	%
Total interest-bearing deposits		$	962,086			$	4,084				1.68	%		$	913,833			$	1,798				0.78	%
Federal funds purchased			2				—				—				1				—				—
Subordinated debt			72,206				828				4.55	%			40,297				539				5.31	%
FHLB borrowings			23,913				264				4.38	%			—				—				—
Total interest-bearing liabilities		$	1,058,207			$	5,176				1.94	%		$	954,131			$	2,337				0.97	%
Demand deposits and other liabilities			546,827												532,216
Total liabilities		$	1,605,034											$	1,486,347
Stockholders' Equity			194,260												186,707
Total Liabilities and Stockholders' Equity		$	1,799,294											$	1,673,054
Interest Rate Spread											3.94	%											3.10	%
Net Interest Income						$	20,666											$	13,941
Net Interest Margin											4.70	%											3.49	%

 

(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

 

UNAUDITED AVERAGE BALANCE SHEETS, INTEREST AND RATES (In thousands)
		For the year ended December 31, 2022												For the year ended December 31, 2021
		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)		$	1,442,716			$	78,872				5.47	%		$	1,289,445			$	61,743				4.79	%
Securities:
Taxable			72,809				1,603				2.20	%			60,732				1,262				2.08	%
Tax-exempt			38,528				1,339				3.48	%			39,170				1,342				3.43	%
Federal funds and interest-bearing deposits			122,596				2,312				1.89	%			216,436				134				0.06	%
Total interest earning assets		$	1,676,649			$	84,126				5.02	%		$	1,605,783			$	64,481				4.02	%
Other assets			67,380												79,357
Total assets		$	1,744,029											$	1,685,140
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Interest-bearing demand deposits		$	85,566			$	601				0.70	%		$	67,897			$	229				0.34	%
Savings and NOW deposits			63,401				203				0.32	%			74,975				165				0.22	%
Money market deposit accounts			137,066				1,547				1.13	%			333,160				772				0.23	%
Time deposits			642,918				8,202				1.28	%			498,001				7,613				1.53	%
Total interest-bearing deposits		$	928,951			$	10,553				1.14	%		$	974,033			$	8,779				0.90	%
Federal funds and repos purchased			2				—				—				—				—				—
Subordinated debt			65,176				2,936				4.50	%			33,953				1,884				5.55	%
FHLB borrowings			23,986				347				1.45	%			—				—				—
Total interest-bearing liabilities		$	1,018,115			$	13,836				1.36	%		$	1,007,986			$	10,663				1.06	%
Demand deposits and other liabilities			535,075												498,031
Total liabilities		$	1,553,190											$	1,506,017
Stockholders' Equity			190,839												179,123
Total Liabilities and Stockholders' Equity		$	1,744,029											$	1,685,140
Interest Rate Spread											3.66	%											2.96	%
Net Interest Income						$	70,290											$	53,818
Net Interest Margin											4.19	%											3.35	%

 

(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

 

UNAUDITED SUMMARY FINANCIAL DATA (Dollars in thousands except per share data)
		At or For the Three Months Ended								At or For the Year Ended
		December 31,								December 31,
		2022				2021				2022				2021
Per share Data and Shares Outstanding
Earnings per common share (basic and diluted)		$	0.95			$	0.56			$	3.26			$	2.65
Book value per common share		$	22.98			$	21.27			$	22.98			$	21.27
Tangible book value per common share(2)		$	21.75			$	21.27			$	21.75			$	21.27
Weighted average common shares (basic and diluted)			7,433,607				7,595,062				7,529,259				7,595,781
Common shares outstanding at end of period			7,442,743				7,595,781				7,442,743				7,595,781
Performance Ratios
Return on average assets (annualized)			1.67	%			1.14	%			1.53	%			1.32	%
Return on average equity (annualized)			15.48	%			10.23	%			13.98	%			12.38	%
Return on average common equity (annualized)			16.72	%			10.63	%			14.99	%			13.18	%
Yield on earning assets (FTE) (2) (annualized)			5.88	%			4.07	%			5.02	%			4.02	%
Cost of interest bearing liabilities (annualized)			1.94	%			0.97	%			1.36	%			1.06	%
Net interest spread (FTE)(2)			3.94	%			3.10	%			3.66	%			2.96	%
Net interest margin (FTE)(2) (annualized)			4.70	%			3.49	%			4.19	%			3.35	%
Noninterest income as a percentage of average assets (annualized)			0.23	%			0.38	%			0.28	%			0.36	%
Noninterest expense to average assets (annualized)			2.36	%			2.07	%			2.24	%			1.95	%
Efficiency ratio(3)			49.45	%			56.31	%			52.19	%			55.10	%
Asset Quality
Commercial real estate loans to total capital (4)			377.54	%			367.88	%			377.54	%			367.88	%
Construction loans to total capital (5)			137.41	%			148.30	%			137.41	%			148.30	%
Loans 30-89 days past due to total gross loans			0.00	%			0.01	%			0.00	%			0.01	%
Loans 90 days past due to total gross loans			0.00	%			0.00	%			0.00	%			0.00	%
Non-accrual loans to total gross loans			0.00	%			0.00	%			0.00	%			0.00	%
Other real estate owned		$	—			$	775			$	—			$	775
Non-performing assets		$	—			$	775			$	—			$	775
Non-performing assets to total assets			0.00	%			0.05	%			0.00	%			0.05	%
Allowance for loan losses to total gross loans			0.88	%			0.86	%			0.88	%			0.86	%
Allowance for loan losses to non-performing assets			N/A				15.09				N/A				15.09
Net loan recoveries		$	2			$	26			$	19			$	5
Net charge-offs (recoveries) to average gross loans (annualized)			N/A				0.00	%			N/A				0.00	%
Regulatory Capital Ratios (Bank only) (1)
Total risk-based capital ratio			0.00	%			16.06	%			0.00	%			16.06	%
Tier 1 risk-based capital ratio			0.00	%			15.23	%			0.00	%			15.23	%
Leverage ratio			0.00	%			15.23	%			0.00	%			15.23	%
Common equity tier 1 ratio			0.00	%			15.23	%			0.00	%			15.23	%
Other information
Closing stock price		$	27.49			$	24.59			$	27.49			$	24.59
Equity / assets			10.35	%			11.46	%			10.35	%			11.46	%
Average equity / average assets			10.80	%			11.16	%			10.94	%			10.63	%
Number of full time equivalent employees			168				138				168				138
# Full service branch offices			6				6				6				6

 

(1)	Regulatory capital ratios as of December 31, 2022 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

  

Unaudited Reconciliation of Certain Non-GAAP Financial Measures (Dollars In thousands)
		For the three months ended December 31,								For the year ended December 31,
		2022				2021				2022				2021
Net interest margin (FTE)
Net interest income (GAAP)		$	20,596			$	13,866			$	70,009			$	53,536
FTE adjustment on tax-exempt securities			70				75				281				282
Net interest income (FTE) (non-GAAP)			20,666				13,941				70,290				53,818
Average interest earning assets			1,743,735				1,585,982				1,676,649				1,605,783
Net interest margin (GAAP)			4.69	%			3.47	%			4.18	%			3.33	%
Net interest margin (FTE) (non-GAAP)			4.70	%			3.49	%			4.19	%			3.35	%

 

		For the three months ended December 31,								For the year ended December 31,
		2022				2021				2022				2021
Stockholders equity, adjusted
Total stockholders equity (GAAP)		$	198,282			$	188,788			$	198,282			$	188,788
Less: preferred stock			(27,263)				(27,263)				(27,263)				(27,263)
Total common stockholders equity (GAAP)			171,019				161,525			$	171,019			$	161,525
Less: intangible assets			9,149				2,493				9,149				2,493
Tangible common stockholders equity (non-GAAP)			161,870				159,032				161,870				159,032
Shares outstanding			7,442,743				7,595,781				7,442,743				7,595,781
Tangible book value per common share (non-GAAP)		$	21.75			$	20.94			$	21.75			$	20.94

 

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SOURCE MainStreet Bancshares, Inc.

FAQ

What is MainStreet Bancshares' net income for 2022?

MainStreet Bancshares reported a net income of $26.7 million for 2022.

What was the net interest margin for MainStreet Bank in 2022?

The net interest margin reached 4.19% for the year ended December 31, 2022.

How much did MainStreet Bancshares' loan portfolio grow in 2022?

The loan portfolio grew by 17.8% to $1.58 billion in 2022.

What was the efficiency ratio for MainStreet Bancshares in 2022?

The efficiency ratio improved to 52% for the year.

What are the prospects for Avenu™ in 2023?

Avenu™ has onboarded its first client and is progressing towards finalizing vendor certifications and conducting testing.