MainStreet Bancshares, Inc. Reports Robust Loan and Net Income Growth

Rhea-AI Summary

MainStreet Bancshares, Inc. (MNSB, MNSBP) reported a net income of $5.4 million for Q1 2022, reflecting strong financial performance. The net interest income rose by 13% to $15.2 million, boosting the net interest margin to 3.91%. Total assets reached $1.75 billion, a growth of 6.3% year-over-year. The loan portfolio increased by 5.3%, with $111 million in commercial loans. Avenu™, the bank's BaaS subsidiary, is gaining traction among fintechs, enhancing profitability with significant non-interest income and deposits.

Positive

• Net income of $5.4 million for Q1 2022, indicating strong performance.
• Net interest income increased by 13% to $15.2 million.
• Net interest margin improved to 3.91%, up 50 basis points.
• Total assets grew to $1.75 billion, a 6.3% year-over-year increase.
• Loan portfolio expanded by 5.3% with $111 million in commercial loan originations.
• Avenu™ successfully onboarding fintech clients, enhancing non-interest income.

Negative

• None.

FAIRFAX, Va., April 19, 2022 /PRNewswire/ -- MainStreet Bancshares, Inc. (Nasdaq: MNSB & MNSBP), the holding company for MainStreet Bank, reported robust net income for the first quarter of 2022, said it is positioned favorably for rising interest rates, and previewed business developments at its Avenu™ Banking-as-a-Service (BaaS) subsidiary.

Net income totaled $5.4 million for three months ended March 31, 2022. Net interest income totaled $15.2 million in the first quarter and is 13% higher than the year-earlier period. Reduced funding costs and an increase in short-term rates propelled the net interest margin higher by 50 basis points to 3.91% as of March 31, versus 3.41% a year earlier.  The Company's efficiency ratio remains solid at 55%. Total assets reached $1.75 billion in the first quarter, a 6.3% increase from a year earlier.

Quarterly results represent:

• 11.59% return on average equity
• 1.32% return on average assets
• $0.64 earnings per share of common stock (basic and diluted)
• $21.12 per common share book value

"MainStreet Bancshares Inc. began 2022 on a strong note, with solid growth in income and increased earnings per share," said Jeff W. Dick, Chairman and CEO of both the Bank and the Company. "More than 70% of our loans are designed to reprice as the Federal Reserve implements plans to push interest rates higher over the coming year. These upward adjustments should continue to reflect positively on the bottom line."

The loan portfolio grew 5.3% in first quarter of 2022, and commercial loan originations totaling $111 million were added to the balance sheet. Asset quality remains pristine, as the Company had zero non-performing assets as of quarter ended March 31, 2022.  Non-interest-bearing deposits represent 36% of the $1.4 billion in total deposits, and 73% of total deposits are core deposits.

"MainStreet Bank has built strong relationships across a diverse business community and maintained a consistent focus on efficiency, yielding steady deposit and loan growth," said Abdul Hersiburane, President of MainStreet Bank. "We serve a vibrant business community across the Metropolitan Washington region, consisting of organizations that demand the nimble, technology-forward response that MainStreet Bank excels at delivering."

Avenu^™

Avenu™, a division of MainStreet Bank, which provides Banking-as-a-Service (BaaS), continued to generate significant customer interest as additional fintechs lined up to get in the queue for our proprietary software solution. We are currently onboarding our initial beta customer with an anticipated go-live date in the fourth quarter of 2022.

"Our focus is to help fintechs manage risk and meet compliance obligations as they accept and facilitate payments, and there is no cutting corners on this important work," said Todd Youngren, President of Avenu™. "Over time, as we move through the beta stage, we anticipate that onboarding will be streamlined into a 60-day process."

Youngren noted that at the end of the first quarter, Avenu™ had 10 fintechs queued up at various stages of progress, including four that have indicated they intend to move forward as soon as the beta process is complete. These prospects include entities that serve the domestic needs of foreign nationals and entities that serve the education and nonprofit industries.

In addition to serving fintechs, Avenu™ has a robust array of existing customers that include payment processors and money service businesses. These relationships have been integral in identifying the needs and services that fintechs need banks to provide in order to have successful partnerships. These relationships provide additional non-interest income and a strong source of low-cost deposits that can be integrated into the Bank's traditional source of income generation, net interest margin. As a benchmark, Youngren noted, Avenu™ is favorably impacting profitability, with its customers providing $61 million in non-interest bearing deposits and $253,000 in non-interest income in the first quarter.

Refer to our press release on October 25, 2021, for additional information on Avenu™'s proprietary solution. If you are a fintech looking to add payments and deposits to your solution, go to Avenu.bank and join the queue today. 

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)
		March 31, 2022				December 31, 2021				September 30, 2021				June 30, 2021				March 31, 2021
ASSETS
Cash and cash equivalents
Cash and due from banks		$	63,986			$	61,827			$	67,992			$	120,121			$	118,399
Federal funds sold			37,756				31,372				65,725				56,164				51,598
Total cash and cash equivalents			101,742				93,199				133,717				176,285				169,997
Investment securities available for sale, at fair value			123,802				99,913				171,603				165,791				180,028
Investment securities held to maturity, at carrying value			18,769				20,349				21,148				21,181				21,449
Restricted equity securities, at cost			17,209				15,609				9,972				9,994				9,642
Loans, net of allowance for loan losses of $12,500, $11,697, $11,428, $11,133, and $13,215, respectively			1,413,238				1,341,760				1,246,331				1,256,436				1,299,169
Premises and equipment, net			14,833				14,863				14,795				13,929				13,975
Other real estate owned, net			—				775				1,158				1,158				1,180
Accrued interest and other receivables			6,980				7,701				4,718				8,752				9,349
Computer software, net of amortization			3,906				2,493				1,165				—				—
Bank owned life insurance			36,492				36,241				35,987				35,736				25,518
Other assets			24,777				14,499				16,605				18,433				12,722
Total Assets		$	1,761,748			$	1,647,402			$	1,657,199			$	1,707,695			$	1,743,029
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Non-interest bearing deposits		$	514,160			$	530,678			$	475,157			$	486,001			$	492,463
Interest bearing DDA deposits			76,286				69,232				63,622				68,028				69,180
Savings and NOW deposits			81,817				85,175				79,556				72,353				72,259
Money market deposits			301,842				267,730				310,776				310,303				342,468
Time deposits			460,839				459,148				485,255				528,247				561,772
Total deposits			1,434,944				1,411,963				1,414,366				1,464,932				1,538,142
Federal Home Loan Bank advances and other borrowings			40,000				—				—				—				—
Subordinated debt			71,955				29,294				40,635				40,576				14,841
Other liabilities			26,053				17,357				18,169				22,559				17,868
Total Liabilities			1,572,952				1,458,614				1,473,170				1,528,067				1,570,851
Stockholders' Equity:
Preferred stock			27,263				27,263				27,263				27,263				27,263
Common stock			29,642				29,466				29,462				29,446				29,437
Capital surplus			66,798				67,668				67,152				66,667				66,233
Retained earnings			68,691				64,194				59,920				55,676				49,090
Accumulated other comprehensive income (loss)			(3,598)				197				232				576				155
Total Stockholders' Equity			188,796				188,788				184,029				179,628				172,178
Total Liabilities and Stockholders' Equity		$	1,761,748			$	1,647,402			$	1,657,199			$	1,707,695			$	1,743,029

 

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME INFORMATION
(In thousands, except share and per share data)
		Year-to-Date								Three Months Ended
		March 31, 2022				March 31, 2021				March 31, 2022				December 31, 2021				September 30, 2021				June 30, 2021				March 31, 2021
INTEREST INCOME:
Interest and fees on loans		$	16,685			$	15,792			$	16,685			$	15,532			$	15,162			$	15,257			$	15,792
Interest on investment securities
Taxable securities			357				260				357				327				318				332				260
Tax-exempt securities			272				270				272				283				267				265				270
Interest on federal funds sold			34				15				34				61				38				20				15
Total interest income			17,348				16,337				17,348				16,203				15,785				15,874				16,337
INTEREST EXPENSE:
Interest on interest bearing DDA deposits			65				55				65				59				60				55				55
Interest on savings and NOW deposits			37				42				37				38				38				47				42
Interest on money market deposits			119				277				119				127				148				220				277
Interest on time deposits			1,431				2,250				1,431				1,574				1,795				1,994				2,250
Interest on Federal Home Loan Bank advances and other borrowings			31				—				31				—				—				—				—
Interest on subordinated debt			468				238				468				539				541				567				238
Total interest expense			2,151				2,862				2,151				2,337				2,582				2,883				2,862
Net interest income			15,197				13,475				15,197				13,866				13,203				12,991				13,475
Provision for (recovery of) loan losses			800				320				800				295				290				(2,080)				320
Net interest income after provision for (recovery of) loan losses			14,397				13,155				14,397				13,571				12,913				15,071				13,155
NON-INTEREST INCOME:
Deposit account service charges			611				539				611				624				642				621				539
Bank owned life insurance income			251				177				251				253				252				218				177
Loan swap fee income			—				—				—				83				—				—				—
Net gain on held-to-maturity securities			—				3				—				3				—				—				3
Net gain (loss) on sale of loans			43				344				43				413				(40)				130				344
Other fee income			257				383				257				247				632				586				383
Total other income			1,162				1,446				1,162				1,623				1,486				1,555				1,446
NON-INTEREST EXPENSES:
Salaries and employee benefits			5,548				4,767				5,548				5,029				4,847				4,663				4,767
Furniture and equipment expenses			657				526				657				726				716				500				526
Advertising and marketing			406				275				406				450				438				402				275
Occupancy expenses			341				306				341				449				399				387				306
Outside services			368				336				368				485				292				280				336
Administrative expenses			210				150				210				192				202				141				150
Other operating expenses			1,433				1,449				1,433				1,389				1,567				1,500				1,449
Total other expenses			8,963				7,809				8,963				8,720				8,461				7,873				7,809
Income before income tax expense			6,596				6,792				6,596				6,474				5,938				8,753				6,792
Income tax expense			1,173				1,342				1,173				1,660				1,155				1,627				1,342
Net Income			5,423				5,450				5,423				4,814				4,783				7,126				5,450
Preferred stock dividends			539				539				539				539				539				539				539
Net income available to common shareholders		$	4,884			$	4,911			$	4,884			$	4,275			$	4,244			$	6,587			$	4,911
Net income per common share, basic and diluted		$	0.64			$	0.65			$	0.64			$	0.56			$	0.56			$	0.87			$	0.65
Weighted average number of common shares, basic and diluted			7,647,519				7,523,547				7,647,519				7,595,062				7,571,214				7,546,452				7,523,547

   

UNAUDITED LOAN, DEPOSIT AND BORROWING DETAIL
(In thousands)
		March 31, 2022								December 31, 2021								March 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		$	344,605				24.1	%		$	337,173				24.8	%		$	327,393				24.8	%			2.2	%			5.3	%
Residential real estate loans			367,138				25.7	%			300,389				22.1	%			181,649				13.8	%			22.2	%			102.1	%
Commercial real estate loans			588,004				41.1	%			534,188				39.3	%			499,134				37.8	%			10.1	%			17.8	%
Commercial industrial loans - Other			92,408				6.5	%			105,675				7.8	%			92,680				7.0	%			-12.6	%			-0.3	%
Commercial industrial loans - PPP Loans			18,776				1.3	%			58,339				4.3	%			179,835				13.6	%			-67.8	%			-89.6	%
Consumer loans			19,711				1.3	%			23,171				1.7	%			39,563				3.0	%			-14.9	%			-50.2	%
Total Gross Loans		$	1,430,642				100.0	%		$	1,358,935				100.0	%		$	1,320,254				100.0	%			5.3	%			8.4	%
Less: Allowance for loan losses			(12,500)								(11,697)								(13,215)
Net deferred loan fees			(4,904)								(5,478)								(7,870)
Net Loans		$	1,413,238							$	1,341,760							$	1,299,169
DEPOSITS:
Non-interest bearing demand deposits		$	514,160				35.8	%		$	530,678				37.6	%		$	492,463				32.0	%			-3.1	%			4.4	%
Interest-bearing demand deposits:
Demand deposits			76,286				5.3	%			69,232				4.9	%			69,180				4.5	%			10.2	%			10.3	%
Savings and NOW deposits			81,817				5.7	%			85,175				6.0	%			72,259				4.7	%			-3.9	%			13.2	%
Money market accounts			301,842				21.0	%			267,730				19.0	%			342,468				22.3	%			12.7	%			-11.9	%
Certificates of deposit $250,000 or more			292,978				20.4	%			285,395				20.2	%			287,154				18.7	%			2.7	%			2.0	%
Certificates of deposit less than $250,000			167,861				11.8	%			173,753				12.3	%			274,618				17.8	%			-3.4	%			-38.9	%
Total Deposits		$	1,434,944				100.0	%		$	1,411,963				100.0	%		$	1,538,142				100.0	%			1.6	%			-6.7	%
BORROWINGS:
Federal Home Loan Bank advances			40,000				35.7	%			—				0.0	%			—				0.0	%			0.0	%			#DIV/0	!
Subordinated debt			71,955				64.3	%			29,294				100.0	%			14,841				100.0	%			145.6	%			384.8	%
Total Borrowings		$	111,955				100.0	%		$	29,294				100.0	%		$	14,841				100.0	%			282.2	%			654.4	%
Total Deposits and Borrowings		$	1,546,899							$	1,441,257							$	1,552,983								7.3	%			-0.4	%
Core customer funding sources (1)		$	1,135,503				73.4	%		$	1,108,177				76.9	%		$	1,159,207				74.6	%			2.5	%			-2.0	%
Brokered and listing service sources (2)			299,441				19.4	%			303,786				21.1	%			378,935				24.4	%			-1.4	%			-21.0	%
Federal Home Loan Bank advances			40,000				2.6	%			—				—				—				—				100.0	%			100.0	%
Subordinated debt (3)			71,955				4.6	%			29,294				2.0	%			14,841				1.0	%			145.6	%			384.8	%
Total Funding Sources		$	1,546,899				100.0	%		$	1,441,257				100.0	%		$	1,552,983				100.0	%			7.3	%			-0.4	%

(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 March 31, 2022												For the three months ended March 31, 2021
		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)		$	1,377,723			$	16,685				4.91	%		$	1,319,542			$	15,792				4.85	%
Investment securities			112,958				629				2.26	%			89,868				530				2.39	%
Federal funds and interest-bearing deposits			83,754				34				0.16	%			193,755				15				0.03	%
Total interest earning assets		$	1,574,435			$	17,348				4.47	%		$	1,603,165			$	16,337				4.13	%
Other assets			88,386												70,727
Total assets		$	1,662,821											$	1,673,892
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Interest-bearing demand deposits		$	70,403			$	65				0.37	%		$	68,593			$	55				0.33	%
Savings and NOW deposits			82,758				37				0.18	%			69,993				42				0.24	%
Money market deposit accounts			267,905				119				0.18	%			412,554				277				0.27	%
Time deposits			456,782				1,431				1.27	%			479,136				2,250				1.90	%
Total interest-bearing deposits		$	877,848			$	1,652				0.76	%		$	1,030,276			$	2,624				1.03	%
Federal funds purchased			1				—				—				—				—				—
Subordinated debt			43,995				468				4.31	%			14,838				238				6.51	%
FHLB borrowings			37,167				31				0.34	%			—				—				—
Total interest-bearing liabilities		$	959,011			$	2,151				0.91	%		$	1,045,114			$	2,862				1.11	%
Demand deposits and other liabilities			514,101												458,051
Total liabilities		$	1,473,112											$	1,503,165
Stockholders' Equity			189,709												170,727
Total Liabilities and Stockholders' Equity		$	1,662,821											$	1,673,892
Interest Rate Spread											3.56	%											3.02	%
Net Interest Income						$	15,197											$	13,475
Net Interest Margin											3.91	%											3.41	%
Net Interest Margin, excluding PPP loans(4)											3.65	%											3.20	%

(1)	Includes loans classified as non-accrual
(2)	Includes average PPP balances of $39.1 million, related interest income of approximately $98,000, and $1.3 million in PPP fees recognized for the three months ended March 31, 2022. Includes average PPP balances of $154.2 million, related interest income of approximately $386,000, and $1.6 million in PPP fees recognized for the three months ended March 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
		March 31,
		2022				2021
Per share Data and Shares Outstanding
Earnings per common share (basic and diluted)		$	0.64			$	0.65
Book value per common share		$	21.12			$	19.26
Tangible book value per common share(2)		$	20.61			$	19.26
Weighted average common shares (basic and diluted)			7,647,519				7,523,547
Common shares outstanding at end of period			7,648,973				7,544,365
Performance Ratios
Return on average assets (annualized)			1.32	%			1.32	%
Return on average assets, excluding impact of PPP loans (annualized)(2)			1.01	%			0.91	%
Return on average equity (annualized)			11.59	%			12.95	%
Return on average common equity (annualized)			12.19	%			13.88	%
Yield on earning assets (annualized)			4.47	%			4.13	%
Cost of interest bearing liabilities (annualized)			0.91	%			1.11	%
Net interest spread			3.56	%			3.02	%
Net interest margin (annualized)			3.91	%			3.41	%
Net interest margin, excluding PPP loans (annualized)(2)			3.65	%			3.20	%
Noninterest income as a percentage of average assets (annualized)			0.28	%			0.35	%
Noninterest expense to average assets (annualized)			2.19	%			1.89	%
Efficiency ratio(3)			54.79	%			52.34	%
Asset Quality
Commercial real estate loans to total capital (4)			370.64	%			374.54	%
Construction loans to total capital (5)			136.19	%			167.92	%
Loans 30-89 days past due to total gross loans			0.00	%			0.07	%
Loans 90 days past due to total gross loans			0.00	%			0.00	%
Non-accrual loans to total gross loans			0.00	%			0.01	%
Other real estate owned		$	—			$	1,180
Non-performing assets		$	—			$	1,329
Non-performing assets to total assets			0.00	%			0.08	%
Non-performing assets to total assets, excluding PPP loans(2)			0.00	%			0.09	%
Allowance for loan losses to total gross loans			0.87	%			1.00	%
Allowance for loan losses to total loans, excluding PPP loans(2)			0.89	%			1.16	%
Allowance for loan losses to non-performing assets			0.00	%			9.94
Net loan recoveries		$	(3)			$	(18)
Net charge-offs (recoveries) to average gross loans (annualized)			0.00	%			(0.01)	%
Net charge-offs (recoveries) to average gross loans, excluding PPP loans (annualized)(2)			0.00	%			(0.01)	%
Regulatory Capital Ratios (Bank only) (1)
Total risk-based capital ratio			16.44	%			15.43	%
Tier 1 risk-based capital ratio			15.63	%			14.38	%
Leverage ratio			14.47	%			10.83	%
Common equity tier 1 ratio			15.63	%			14.38	%
Other information
Closing stock price		$	24.31			$	20.76
Equity / assets			10.72	%			9.88	%
Equity / assets, excluding PPP loans(2)			10.83	%			11.01	%
Average equity / average assets			11.41	%			10.20	%
Average equity / average assets, less average PPP loans(2)			11.68	%			11.23	%
Number of full time equivalent employees			141				125
# Full service branch offices			6				7

(1)	Regulatory capital ratios as of March 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

 

Reconciliation of Certain Non-GAAP Financial Measures
(Dollars In thousands)
		For the three months ended March 31,
			2022				2021
Paycheck Protection Program adjustment impact
Loans held for investment (GAAP)		$	1,430,642			$	1,320,254
Less: PPP loans			18,776				179,835
Loans held for investment, excluding PPP (non-GAAP)		$	1,411,866			$	1,140,419
Average loans held for investment (GAAP)		$	1,377,723			$	1,319,542
Less: Average PPP loans			39,096				154,233
Average loans held for investment, excluding PPP (non-GAAP)		$	1,338,627			$	1,165,309
		For the three months ended March 31,
			2022				2021
Net interest margin adjustment
Net interest income (GAAP)		$	15,197			$	13,475
Less: PPP fees recognized			1,264				1,642
Less: PPP interest income earned			98				386
Net interest income, excluding PPP income (non-GAAP)			13,835				11,447
Average interest earning assets (GAAP)			1,574,435				1,603,165
Less: average PPP loans			39,096				154,233
Average interest earning assets, excluding PPP (non-GAAP)			1,535,339				1,448,932
Net interest margin (GAAP)			3.91	%			3.41	%
Net interest margin, excluding PPP (non-GAAP)			3.65	%			3.20	%
		For the three months ended March 31,
			2022				2021
Total asset adjustment
Total assets (GAAP)		$	1,761,748			$	1,743,029
Less: PPP loans			18,776				179,835
Total assets, excluding PPP loans (non-GAAP)			1,742,972				1,563,194
Total equity (GAAP)			188,796				172,178
Equity / assets, excluding PPP loans (non-GAAP)			10.83	%			11.01	%
Average asset adjustment
Average assets (GAAP)			1,662,821				1,673,892
Less: average PPP loans			39,096				154,233
Total average assets, excluding average PPP loans			1,623,725				1,519,659
Total average equity (GAAP)			189,709				170,727
Average equity / average assets, excluding average PPP loans (non-GAAP)			11.68	%			11.23	%
		For the three months ended March 31,
			2022				2021
Return on Average Assets, adjusted
Net income (GAAP)		$	5,423			$	5,450
Less: PPP fees recognized			1,264				1,642
Less: PPP interest income earned			98				386
Net income, excluding PPP income (non-GAAP)			4,061				3,422
Average total assets			1,662,821				1,673,892
Less: average PPP loans			39,096				154,233
Average total assets, excluding PPP (non-GAAP)			1,623,725				1,519,659
Return on average assets, excluding PPP (non-GAAP)			1.01	%			0.91	%
		For the three months ended March 31,
			2022				2021
Nonperforming Assets to total assets, adjusted
Total nonperforming assets (GAAP)		$	—			$	1,329
Total assets (GAAP)			1,761,748				1,743,029
Less: PPP loans			18,776				179,835
Total assets, excluding PPP loans (non-GAAP)			1,742,972				1,563,194
Nonperforming assets to total assets, excluding PPP loans (non-GAAP)			0.00	%			0.09	%
		For the three months ended March 31,
			2022				2021
Allowance for loan losses, adjusted
Allowance for loan losses (GAAP)		$	12,500			$	13,215
Total gross loans (GAAP)			1,430,642				1,320,254
Less: PPP loans			18,776				179,835
Total gross loans, excluding PPP loans (non-GAAP)			1,411,866				1,140,419
Allowance for loan losses to total loans, excluding PPP (non-GAAP)			0.89	%			1.16	%
		For the three months ended March 31,
			2022				2021
Net charge-offs to average loans, adjusted
Total net recoveries (GAAP)		$	(3)				(18)
Total average gross loans (GAAP)			1,377,723				1,319,542
Less: average PPP loans			39,096				154,233
Total average gross loans, excluding PPP loans (non-GAAP)			1,338,627				1,165,309
Net recoveries to average gross loans, excluding PPP (annualized) (non-GAAP)			0.00	%			(0.01)	%
		For the three months ended March 31,
			2022				2021
Stockholders equity, adjusted
Total stockholders equity		$	188,796			$	172,178
Less: preferred stock			(27,263)				(27,263)
Total common stockholders equity			161,533				144,915
Less: intangible assets			3,906				—
Tangible common stockholders equity			157,627				144,915
Shares outstanding			7,648,973				7,544,365
Tangible book value per common share		$	20.61			$	19.21

 

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SOURCE MainStreet Bancshares, Inc.

FAQ

What were MainStreet Bancshares' net income results for Q1 2022?

MainStreet Bancshares reported a net income of $5.4 million for the first quarter of 2022.

How much did MainStreet Bancshares increase its net interest income in Q1 2022?

MainStreet Bancshares increased its net interest income by 13% to $15.2 million in Q1 2022.

What is the current net interest margin for MainStreet Bancshares?

The net interest margin for MainStreet Bancshares reached 3.91% as of March 31, 2022.

What growth did MainStreet Bancshares see in total assets for Q1 2022?

MainStreet Bancshares' total assets grew to $1.75 billion, reflecting a 6.3% increase year-over-year.

What impact did Avenu™ have on MainStreet Bancshares' financials in Q1 2022?

Avenu™ contributed significantly to non-interest income and low-cost deposits for MainStreet Bancshares in Q1 2022.