MainStreet Bancshares, Inc. Reports Another Record Year

Rhea-AI Summary

MainStreet Bancshares reported record net income of $22.2 million for 2021, yielding a 12.38% return on average equity and a 1.32% return on average assets. Key highlights include a 16% increase in net interest income, rising to $53.5 million, and a net interest margin improvement to 3.61%. The company’s loan portfolio grew by 4.1%, benefitting from significantly lower nonperforming assets at 0.05%. Additionally, the upcoming launch of the Avenu™ BaaS platform is anticipated to enhance low-cost deposits and generate new fee income.

Positive

• Record net income of $22.2 million, a 12.38% return on equity
• Net interest income increased by 16% to $53.5 million
• Nonperforming assets at only 0.05% of total assets
• Loan portfolio growth of 4.1% in 2021
• Upcoming Avenu™ BaaS platform expected to increase low-cost deposits and fee income

Negative

• None.

FAIRFAX, Va., Jan. 20, 2022 /PRNewswire/ -- MainStreet Bancshares, Inc. (Nasdaq: MNSB & MNSBP), the holding company for MainStreet Bank, reported record net income of $22.2 million for 2021.  Year-end results represent:

• 12.38% return on average equity
• 1.32% return on average assets
• $2.65 per share of common stock (basic and diluted)
• $20.94 per common share tangible book value

Going forward, the Company's balance sheet is positioned to respond well in a rising interest rate environment.

Net interest income of $53.5 million is up over 16% from last year.  Steady loan rates and reduced funding costs propelled the net interest margin higher by 40 basis points to 3.61% in December 2021, versus 3.21% a year earlier.  The Company's efficiency ratio remains solid at 55%.

"Going forward, the Company's balance sheet is positioned to respond well in a rising interest rate environment," said Tom Chmelik, CFO and Senior Executive VP of MainStreet Bancshares, Inc. and MainStreet Bank.  "When the Federal Reserve initiates a rate increase, it should have a positive impact on the Company's earnings."

The portfolio of hotel loans continues to perform well, and asset quality remains pristine – as nonperforming assets represent a mere 0.05% of total assets. 

The loan portfolio grew 4.1% in 2021.  Excluding Paycheck Protection Program (PPP) loans, originations of $526 million were offset by paydowns and sales of $364 million.  Paydowns in 2021 were significantly higher than normal, which was anticipated after the much lower than normal paydowns experienced in 2020.  The balance of PPP loans at year-end was $58 million. 

Non-interest-bearing deposits represent 38% of the $1.4 billion in total deposits, and 77% of total deposits are core deposits.  

"The team committed significant time and energy to helping our customers navigate the PPP debt forgiveness process," said Abdul Hersiburane, President of MainStreet Bank.  "While this is core to relationship banking, it was counter-productive to balance sheet growth in the short-run.  We are very pleased to see the return of robust demand for traditional loans as businesses regain their footing and turn to us to support their growth."

The Company is also mapping out strategic initiatives in other areas.  On October 25, 2021, the Company unveiled Avenu^™ - its Banking as a Service (BaaS) platform for fintechs.  Avenu^™ is a proprietary solution purpose built for its fintech partners.  With Avenu^™, fintech's can be up-and-running as quickly as 60 days.  The Company is planning to go live with Avenu^™ in the third quarter of 2022.  If you are a fintech looking to add payments and deposits to your solution, go to Avenu.bank and join the queue today.  

"The solution that the Avenu^™ team is developing will be transformational for the Company and the fintech community," said Jeff W. Dick, Chairman & CEO of MainStreet Bancshares, Inc. and MainStreet Bank.  "We're demystifying the banking process by offering fintechs modern API connectivity to our robust fintech core.  We're also providing a purpose-built training program on banking and compliance that will bring the fintech's team up-to-speed on all they need to know to operate in this space.  The net result for the Company should be a significant increase in low-cost deposits and a new source for fee income."

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, DC 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.

Contact: Jeff W. Dick, Chairman & CEO
(703) 481-4567

UNAUDITED CONSOLIDATED BALANCE SHEET INFORMATION
(In thousands, except share data)
		December 31, 2021				September 30, 2021				June 30, 2021				March 31, 2021				December 31, 2020
ASSETS
Cash and cash equivalents
Cash and due from banks		$	61,827			$	67,992			$	120,121			$	118,399			$	75,935
Federal funds sold			31,372				65,725				56,164				51,598				31,593
Total cash and cash equivalents			93,199				133,717				176,285				169,997				107,528
Investment securities available for sale, at fair value			99,913				171,603				165,791				180,028				147,414
Investment securities held to maturity, at carrying value			20,349				21,148				21,181				21,449				22,520
Restricted equity securities, at cost			15,609				9,972				9,994				9,642				4,616
Loans held for sale			—				—				—				—				57,006
Loans, net of allowance for loan losses of $11,697, $11,428, $11,133, $13,215, and $12,877, respectively			1,341,760				1,246,331				1,256,436				1,299,169				1,230,379
Premises and equipment, net			14,863				14,795				13,929				13,975				14,289
Other real estate owned, net			775				1,158				1,158				1,180				1,180
Accrued interest and other receivables			7,701				4,718				8,752				9,349				9,604
Computer software, net of amortization			2,493				1,165				—				—				—
Bank owned life insurance			36,241				35,987				35,736				25,518				25,341
Other assets			14,499				16,605				18,433				12,722				23,288
Total Assets		$	1,647,402			$	1,657,199			$	1,707,695			$	1,743,029			$	1,643,165
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Non-interest bearing deposits		$	530,678			$	475,157			$	486,001			$	492,463			$	370,497
Interest bearing DDA deposits			69,232				63,622				68,028				69,180				70,307
Savings and NOW deposits			85,175				79,556				72,353				72,259				74,099
Money market deposits			267,730				310,776				310,303				342,468				426,600
Time deposits			459,148				485,255				528,247				561,772				496,743
Total deposits			1,411,963				1,414,366				1,464,932				1,538,142				1,438,246
Subordinated debt			29,294				40,635				40,576				14,841				14,834
Other liabilities			17,357				18,169				22,559				17,868				22,420
Total Liabilities			1,458,614				1,473,170				1,528,067				1,570,851				1,475,500
Stockholders' Equity:
Preferred stock			27,263				27,263				27,263				27,263				27,263
Common stock			29,466				29,462				29,446				29,437				29,130
Capital surplus			67,668				67,152				66,667				66,233				66,116
Retained earnings			64,194				59,920				55,676				49,090				44,179
Accumulated other comprehensive income			197				232				576				155				977
Total Stockholders' Equity			188,788				184,029				179,628				172,178				167,665
Total Liabilities and Stockholders' Equity		$	1,647,402			$	1,657,199			$	1,707,695			$	1,743,029			$	1,643,165

 

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME INFORMATION
(In thousands, except share and per share data)
		Year-to-Date								Three Months Ended
		December 31, 2021				December 31, 2020				December 31, 2021				September 30, 2021				June 30, 2021				March 31, 2021				December 31, 2020
INTEREST INCOME:
Interest and fees on loans		$	61,743			$	59,634			$	15,532			$	15,162			$	15,257			$	15,792			$	15,933
Interest on investment securities			2,322				2,007				610				585				597				530				519
Interest on federal funds sold			134				431				61				38				20				15				15
Total interest income			64,199				62,072				16,203				15,785				15,874				16,337				16,467
INTEREST EXPENSE:
Interest on interest bearing DDA deposits			229				317				59				60				55				55				108
Interest on savings and NOW deposits			165				221				38				38				47				42				52
Interest on money market deposits			772				2,162				127				148				220				277				418
Interest on time deposits			7,613				12,322				1,574				1,795				1,994				2,250				2,583
Interest on Federal Home Loan Bank    advances and other borrowings			—				107				—				—				—				—				—
Interest on subordinated debt			1,884				966				539				541				567				238				240
Total interest expense			10,663				16,095				2,337				2,582				2,883				2,862				3,401
Net interest income			53,536				45,977				13,866				13,203				12,991				13,475				13,066
Provision for (recovery of) loan losses			(1,175)				3,610				295				290				(2,080)				320				(2,950)
Net interest income after provision    for (recovery of) loan losses			54,711				42,367				13,571				12,913				15,071				13,155				16,016
NON-INTEREST INCOME:
Deposit account service charges			2,426				1,916				624				642				621				539				509
Bank owned life insurance income			900				779				253				252				218				177				183
Loan swap fee income			83				3,510				83				—				—				—				833
Net gain on held-to-maturity securities			6				—				3				—				—				3				—
Net gain (loss) on sale of loans			847				33				413				(40)				130				344				—
Other fee income			1,848				1,213				247				632				586				383				378
Total other income			6,110				7,451				1,623				1,486				1,555				1,446				1,903
NON-INTEREST EXPENSES:
Salaries and employee benefits			19,305				17,937				5,029				4,847				4,663				4,767				4,746
Furniture and equipment expenses			2,468				2,128				726				716				500				526				601
Advertising and marketing			1,565				1,003				450				438				402				275				290
Occupancy expenses			1,541				1,270				449				399				387				306				360
Outside services			1,394				959				485				292				280				336				263
Administrative expenses			685				674				192				202				141				150				166
Other operating expenses			5,907				6,287				1,389				1,567				1,500				1,449				1,732
Total other expenses			32,865				30,258				8,720				8,461				7,873				7,809				8,158
Income before income tax expense			27,956				19,560				6,474				5,938				8,753				6,792				9,761
Income tax expense			5,785				3,843				1,660				1,155				1,627				1,342				2,051
Net Income			22,171				15,717				4,814				4,783				7,126				5,450				7,710
Preferred stock dividends			2,156				635				539				539				539				539				635
Net income available to common shareholders		$	20,015			$	15,082			$	4,275			$	4,244			$	6,587			$	4,911			$	7,075
Net income per common share,    basic and diluted		$	2.65			$	1.85			$	0.56			$	0.56			$	0.87			$	0.65			$	0.92
Weighted average number of common shares,    basic and diluted			7,559,310				8,131,334				7,595,062				7,571,214				7,546,452				7,523,547				7,700,470

 

UNAUDITED LOAN, DEPOSIT AND BORROWING DETAIL
(In thousands)
		December 31, 2021								September 30, 2021								December 31, 2020								Percentage Change
		$ Amount				% of Total				$ Amount				% of Total				$ Amount				% of Total				Last 3 Mos				Last 12 Mos
LOANS:
Construction and land development loans		$	337,173				24.8	%		$	327,004				25.9	%		$	324,906				26.0	%			3.1	%			3.8	%
Residential real estate loans			300,389				22.1	%			223,029				17.6	%			183,531				14.7	%			34.7	%			63.7	%
Commercial real estate loans			534,188				39.3	%			494,766				39.1	%			466,898				37.4	%			8.0	%			14.4	%
Commercial industrial loans - Other			105,675				7.8	%			102,747				8.1	%			94,847				7.6	%			2.8	%			11.4	%
Commercial industrial loans - PPP Loans			58,339				4.3	%			88,534				7.0	%			135,180				10.8	%			-34.1	%			-56.8	%
Consumer loans			23,171				1.7	%			27,740				2.3	%			44,073				3.5	%			-16.5	%			-47.4	%
Total Gross Loans		$	1,358,935				100.0	%		$	1,263,820				100.0	%		$	1,249,435				100.0	%			7.5	%			8.8	%
Less: Allowance for loan losses			(11,697)								(11,428)								(12,877)
Net deferred loan fees			(5,478)								(6,061)								(6,179)
Net Loans		$	1,341,760							$	1,246,331							$	1,230,379
DEPOSITS:
Non-interest bearing demand deposits		$	530,678				37.6	%		$	475,157				33.6	%		$	370,497				25.8	%			11.7	%			43.2	%
Interest-bearing demand deposits:
Demand deposits			69,232				4.9	%			63,622				4.5	%			70,307				4.9	%			8.8	%			-1.5	%
Savings and NOW deposits			85,175				6.0	%			79,556				5.6	%			74,099				5.2	%			7.1	%			14.9	%
Money market accounts			270,045				19.1	%			310,776				22.0	%			426,600				29.7	%			-13.1	%			-36.7	%
Certificates of deposit $250,000 or more			285,395				20.2	%			295,454				20.9	%			213,077				14.8	%			-3.4	%			33.9	%
Certificates of deposit less than $250,000			171,438				12.2	%			189,801				15.4	%			283,666				19.6	%			-9.7	%			-39.6	%
Total Deposits		$	1,411,963				100.0	%		$	1,414,366				100.0	%		$	1,438,246				100.0	%			-0.2	%			-1.8	%
BORROWINGS:
Subordinated debt			29,294				100.0	%			40,635				100.0	%			14,834				100.0	%			-27.9	%			97.5	%
Total Borrowings		$	29,294				100.0	%		$	40,635				100.0	%		$	14,834				100.0	%			-27.9	%			97.5	%
Total Deposits and Borrowings		$	1,441,257							$	1,455,001							$	1,453,080								-0.9	%			-0.8	%
Core customer funding sources (1)		$	1,108,177				76.9	%		$	1,097,948				75.5	%		$	1,046,087				72.0	%			0.9	%			5.9	%
Brokered and listing service sources (2)			303,786				21.1	%			316,418				21.7	%			392,159				27.0	%			-4.0	%			-22.5	%
Subordinated debt (3)			29,294				2.0	%			40,635				2.8	%			14,834				1.0	%			-27.9	%			97.5	%
Total Funding Sources		$	1,441,257				100.0	%		$	1,455,001				100.0	%		$	1,453,080				100.0	%			-0.9	%			-0.8	%

(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, 2021												For the three months ended December 31, 2020
		Average Balance				Interest Income/ Expense				Average Yields/ Rate (annualized)				Average Balance				Interest Income/ Expense				Average Yields/ Rate (annualized)
ASSETS:
Interest earning assets:
Loans (1)(2)(3)		$	1,203,764			$	15,532				5.12	%		$	1,311,726			$	15,933				4.83	%
Investment securities			115,712				610				2.09	%			85,084				519				2.43	%
Federal funds and interest-bearing deposits			192,442				61				0.13	%			171,933				15				0.03	%
Total interest earning assets		$	1,511,918			$	16,203				4.25	%		$	1,568,743			$	16,467				4.18	%
Other assets			161,136												71,013
Total assets		$	1,673,054											$	1,639,756
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Interest-bearing demand deposits		$	69,532			$	59				0.34	%		$	71,906			$	108				0.60	%
Savings and NOW deposits			82,048				38				0.18	%			70,542				52				0.29	%
Money market deposit accounts			296,063				127				0.17	%			390,645				418				0.43	%
Time deposits			466,190				1,574				1.34	%			509,963				2,583				2.02	%
Total interest-bearing deposits		$	913,833			$	1,798				0.78	%		$	1,043,056			$	3,161				1.21	%
Subordinated debt			40,297				539				5.31	%			14,823				240				6.44	%
FHLB borrowings			1				—				—				4,511				—				—
Total interest-bearing liabilities		$	954,131			$	2,337				0.97	%		$	1,062,390			$	3,401				1.27	%
Demand deposits and other liabilities			532,216												428,726
Total liabilities		$	1,486,347											$	1,491,116
Stockholders' Equity			186,707												148,043
Total Liabilities and Stockholders' Equity		$	1,673,054											$	1,639,159
Interest Rate Spread											3.28	%											2.91	%
Net Interest Income						$	13,866											$	13,066
Net Interest Margin											3.64	%											3.31	%
Net Interest Margin, excluding PPP loans(4)											3.49	%											3.19	%

(1)	Includes loans classified as non-accrual
(2)	Includes average PPP balances of $74.1 million, related interest income of approximately $185,000, and $1.0 million in PPP fees recognized for the three months ended December 31, 2021
(3)	Total loan interest income includes amortization of deferred loan fees, net of deferred loan costs
(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, 2021												For the year ended December 31, 2020
		Average Balance				Interest Income/ Expense				Average Yields/ Rate (annualized)				Average Balance				Interest Income/ Expense				Average Yields/ Rate (annualized)
ASSETS:
Interest earning assets:
Loans (1)(2)(3)		$	1,165,907			$	61,743				5.30	%		$	1,219,525			$	59,634				4.89	%
Investment securities			99,902				2,322				2.32	%			76,414				2,007				2.63	%
Federal funds and interest-bearing deposits			216,436				134				0.06	%			135,688				431				0.32	%
Total interest earning assets		$	1,482,245			$	64,199				4.33	%		$	1,431,627			$	62,072				4.34	%
Other assets			202,895												66,561
Total assets		$	1,685,140											$	1,498,188
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Interest-bearing demand deposits		$	67,897			$	229				0.34	%		$	37,431			$	317				0.85	%
Savings and NOW deposits			74,975				165				0.22	%			66,028				221				0.33	%
Money market deposit accounts			333,160				772				0.23	%			314,398				2,162				0.69	%
Time deposits			498,001				7,613				1.53	%			535,116				12,322				2.30	%
Total interest-bearing deposits		$	974,033			$	8,779				0.90	%		$	952,973			$	15,022				1.58	%
Subordinated debt			33,953				1,884				5.55	%			14,820				966				6.52	%
FHLB borrowings			—				—				—				6,189				107				1.73	%
Total interest-bearing liabilities		$	1,007,986			$	10,663				1.06	%		$	973,982			$	16,095				1.65	%
Demand deposits and other liabilities			498,031												375,046
Total liabilities		$	1,506,017											$	1,349,028
Stockholders' Equity			179,123												149,160
Total Liabilities and Stockholders' Equity		$	1,685,140											$	1,498,188
Interest Rate Spread											3.27	%											2.69	%
Net Interest Income						$	53,536											$	45,977
Net Interest Margin											3.61	%											3.21	%
Net Interest Margin, excluding PPP loans(4)											3.48	%											3.21	%

(1)	Includes loans classified as non-accrual and loans held for sale
(2)	Includes average PPP balances of $123.5 million, related interest income of approximately $1.2 million, and $5.0 million in PPP fees recognized for the year ended December 31, 2021
(3)	Total loan interest income includes amortization of deferred loan fees, net of deferred loan costs
(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,
		2021				2020			2021				2020
Per share Data and Shares Outstanding
Earnings per common share (basic and diluted)		$	0.56			$	0.92		$	2.65			$	1.85
Book value per common share		$	21.27			$	18.86		$	21.27			$	18.86
Tangible book value per common share(2)		$	20.94			$	18.86		$	20.94			$	18.86
Weighted average common shares (basic and diluted)			7,595,062				7,700,470			7,559,310				8,131,334
Common shares outstanding at end of period			7,595,781				7,443,842			7,595,781				7,443,842
Performance Ratios
Return on average assets (annualized)			1.14	%			1.88	%		1.32	%			1.05	%
Return on average assets, excluding impact of PPP loans (annualized)(2)			0.90	%			1.61	%		1.02	%			0.87	%
Return on average equity (annualized)			10.23	%			18.44	%		12.38	%			10.54	%
Return on average common equity (annualized)			10.63	%			20.05	%		13.18	%			10.68	%
Yield on earning assets (annualized)			4.25	%			4.18	%		4.33	%			4.34	%
Cost of interest bearing liabilities (annualized)			0.97	%			1.27	%		1.06	%			1.65	%
Net interest spread			3.28	%			2.91	%		3.27	%			2.69	%
Net interest margin (annualized)			3.64	%			3.31	%		3.61	%			3.21	%
Net interest margin, excluding PPP loans (annualized)(2)			3.49	%			3.19	%		3.48	%			3.21	%
Noninterest income as a percentage of average assets (annualized)			0.38	%			0.46	%		0.36	%			0.50	%
Noninterest expense to average assets (annualized)			2.07	%			1.99	%		1.95	%			2.02	%
Efficiency ratio(3)			56.31	%			54.50	%		55.10	%			56.67	%
Asset Quality
Commercial real estate loans to total capital (4)			367.88	%			365.80	%		367.88	%			365.80	%
Construction loans to total capital (5)			148.30	%			171.42	%		148.30	%			171.42	%
Loans 30-89 days past due to total gross loans			0.01	%			0.01	%		0.01	%			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	%			0.01	%		0.00	%			0.01	%
Other real estate owned		$	775			$	1,180		$	775			$	1,180
Non-performing assets		$	775			$	1,330		$	775			$	1,330
Non-performing assets to total assets			0.05	%			0.08	%		0.05	%			0.08	%
Non-performing assets to total assets, excluding PPP loans(2)			0.05	%			0.09	%		0.05	%			0.09	%
Allowance for loan losses to total gross loans			0.86	%			1.03	%		0.86	%			1.03	%
Allowance for loan losses to total loans, excluding PPP loans(2)			0.90	%			1.16	%		0.90	%			1.16	%
Allowance for loan losses to non-performing assets			15.09				9.68			15.09				9.68
Net loan charge-offs (recoveries)		$	26			$	(1,480)		$	5			$	317
Net charge-offs (recoveries) to average gross loans (annualized)			0.01	%			(0.45)	%		0.00	%			0.03	%
Net charge-offs (recoveries) to average gross loans, excluding PPP loans (annualized)(2)			0.01	%			(0.51)	%		0.00	%			0.03	%
Regulatory Capital Ratios (Bank only) (1)
Total risk-based capital ratio			16.06	%			14.60	%		16.06	%			14.60	%
Tier 1 risk-based capital ratio			15.23	%			13.61	%		15.23	%			13.61	%
Leverage ratio			12.89	%			10.78	%		12.89	%			10.78	%
Common equity tier 1 ratio			15.23	%			13.61	%		15.23	%			13.61	%
Other information
Closing stock price		$	24.59			$	16.91		$	24.59			$	16.91
Equity / assets			11.46	%			10.20	%		11.46	%			10.20	%
Equity / assets, excluding PPP loans(2)			11.88	%			11.12	%		11.88	%			11.12	%
Average equity / average assets			11.16	%			9.96	%		10.63	%			10.00	%
Average equity / average assets, less average PPP loans(2)			11.68	%			11.29	%		11.47	%			10.80	%
Number of full time equivalent employees			138				126			138				126
# Full service branch offices			6				7			6				7

(1)	Regulatory capital ratios as of December 31, 2021 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 non-owner occupied and construction loans as a percentage of Bank capital
(5)	Construction loans as a percentage of Bank capital

 

Reconciliation of Certain Non-GAAP Financial Measures
(Dollars In thousands)
		For the three months ended December 31,								For the year ended December 31,
			2021				2020				2021				2020
Paycheck Protection Program adjustment impact
Loans held for investment (GAAP)		$	1,358,935			$	1,249,435			$	1,358,935			$	1,249,435
Less: PPP loans			58,339				135,180				58,339				135,180
Loans held for investment, excluding PPP (non-GAAP)		$	1,300,596			$	1,114,255			$	1,300,596			$	1,114,255
Average loans held for investment (GAAP)		$	1,203,764			$	1,311,726			$	1,165,907			$	1,219,525
Less: Average PPP loans			74,064				157,787				123,538				116,690
Average loans held for investment, excluding PPP (non-GAAP)		$	1,129,700			$	1,153,939			$	1,042,369				1,102,835
		For the three months ended December 31,								For the year ended December 31,
			2021				2020				2021				2020
Net interest margin adjustment
Net interest income (GAAP)		$	13,866			$	13,066			$	53,536			$	45,977
Less: PPP fees recognized			1,015				1,363				4,973				2,598
Less: PPP interest income earned			185				394				1,235				1,167
Net interest income, excluding PPP income (non-GAAP)			12,666				11,309				47,328				42,212
Average interest earning assets (GAAP)			1,511,918				1,568,743				1,482,245				1,431,627
Less: average PPP loans			74,064				157,787				123,538				116,690
Average interest earning assets, excluding PPP (non-GAAP)			1,437,854				1,410,956				1,358,707				1,314,937
Net interest margin (GAAP)			3.64	%			3.31	%			3.61	%			3.21	%
Net interest margin, excluding PPP (non-GAAP)			3.49	%			3.19	%			3.48	%			3.21	%
		For the three months ended December 31,								For the year ended December 31,
			2021				2020				2021				2020
Total asset adjustment
Total assets (GAAP)		$	1,647,402			$	1,643,165			$	1,647,402			$	1,643,165
Less: PPP loans			58,339				135,180				58,339				135,180
Total assets, excluding PPP loans (non-GAAP)			1,589,063				1,507,985				1,589,063				1,507,985
Total equity (GAAP)			188,788				167,665				188,788				167,665
Equity / assets, excluding PPP loans (non-GAAP)			11.88	%			11.12	%			11.88	%			11.12	%
Average asset adjustment
Average assets (GAAP)			1,673,054				1,639,756				1,685,140				1,498,188
Less: average PPP loans			74,064				157,787				123,538				116,690
Total average assets, excluding average PPP loans			1,598,990				1,481,969				1,561,602				1,381,498
Total average equity (GAAP)			186,707				167,288				179,123				149,160
Average equity / average assets, excluding average PPP loans (non-GAAP)			11.68	%			11.29	%			11.47	%			10.80	%
		For the three months ended December 31,								For the year ended December 31,
			2021				2020				2021				2020
Return on Average Assets, adjusted
Net income (GAAP)		$	4,814			$	7,710			$	22,171			$	15,717
Less: PPP fees recognized			1,015				1,363				4,973				2,598
Less: PPP interest income earned			185				394				1,235				1,167
Net income, excluding PPP income (non-GAAP)			3,614				5,953				15,963				11,952
Average total assets			1,673,054				1,639,756				1,685,140				1,498,188
Less: average PPP loans			74,064				157,787				123,538				116,690
Average total assets, excluding PPP (non-GAAP)			1,598,990				1,481,969				1,561,602				1,381,498
Return on average assets, excluding PPP (non-GAAP)			0.90	%			1.61	%			1.02	%			0.87	%
		For the three months ended December 31,								For the year ended December 31,
			2021				2020				2021				2020
Nonperforming Assets to total assets, adjusted
Total nonperforming assets (GAAP)		$	775			$	1,330			$	775			$	1,330
Total assets (GAAP)			1,647,402				1,643,165				1,647,402				1,643,165
Less: PPP loans			58,339				135,180				58,339				135,180
Total assets, excluding PPP loans (non-GAAP)			1,589,063				1,507,985				1,589,063				1,507,985
Nonperforming assets to total assets, excluding PPP loans (non-GAAP)			0.05	%			0.09	%			0.05	%			0.09	%
		For the three months ended December 31,								For the year ended December 31,
			2021				2020				2021				2020
Allowance for loan losses, adjusted
Allowance for loan losses (GAAP)		$	11,697			$	12,877			$	11,697			$	12,877
Total gross loans (GAAP)			1,358,935				1,249,435				1,358,935				1,249,435
Less: PPP loans			58,339				135,180				58,339				135,180
Total gross loans, excluding PPP loans (non-GAAP)			1,300,596				1,114,255				1,300,596				1,114,255
Allowance for loan losses to total loans, excluding PPP (non-GAAP)			0.90	%			1.16	%			0.90	%			1.16	%
		For the three months ended December 31,								For the year ended December 31,
			2021				2020				2021				2020
Net charge-offs to average loans, adjusted
Total net charge-offs (recoveries) (GAAP)		$	26				(1,480)			$	5			$	317
Total average gross loans (GAAP)			1,203,764				1,311,726				1,165,907				1,219,525
Less: average PPP loans			74,064				157,787				123,538				116,690
Total average gross loans, excluding PPP loans (non-GAAP)			1,129,700				1,153,939				1,042,369				1,102,835
Net charge-offs (recoveries) to average gross loans, excluding PPP (annualized) (non-GAAP)			0.01	%			(0.51)	%			0.00	%			0.03	%
		For the three months ended December 31,								For the year ended December 31,
			2021				2020				2021				2020
Stockholders equity, adjusted
Total common stockholders equity		$	161,525				140,402			$	161,525			$	140,402
Less: intangible assets			2,493				—				2,493				—
Tangible common stockholders equity			159,032				140,402				159,032				140,402
Shares outstanding			7,595,781				7,443,842				7,595,781				7,443,842
Tangible book value per common share		$	20.94			$	18.86			$	20.94			$	18.86

 

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SOURCE MainStreet Bancshares, Inc.

FAQ

What was the net income of MainStreet Bancshares for 2021?

MainStreet Bancshares reported a net income of $22.2 million for 2021.

What is the return on average equity for MNSB in 2021?

The return on average equity for MainStreet Bancshares in 2021 was 12.38%.

How much did net interest income increase for MNSB in 2021?

Net interest income for MainStreet Bancshares increased by 16% to $53.5 million in 2021.

What is the status of the loan portfolio of MNSB?

MainStreet Bancshares experienced a 4.1% growth in its loan portfolio in 2021.

What is the anticipated impact of the Avenu™ platform for MNSB?

The Avenu™ BaaS platform is expected to significantly increase low-cost deposits and generate new fee income for MainStreet Bancshares.