MainStreet Bancshares, Inc. Reports Strong Earnings

Rhea-AI Summary

On October 17, 2022, MainStreet Bancshares reported robust financial performance for Q3 2022. Key metrics include a net interest margin of 4.14% and net income of $7.2 million, representing a 34% increase from Q2 and a 62% increase year-over-year. Loan interest income climbed to $20.3 million, up 13% from Q2. The company anticipates earnings per share of $3.25 for the year. Notably, asset quality remains high with zero non-performing assets. The loan portfolio has grown by 8% in 2022, and total assets are nearing $1.9 billion.

Positive

• Net income for Q3 increased 62% year-over-year to $7.2 million.
• Net interest margin widened to 4.14%, up 84 basis points from the previous year.
• Loan interest income rose 13% from Q2 to $20.3 million.
• Year-to-date earnings per share forecast increased to $3.25.
• Loan portfolio grew 8% since the beginning of 2022.

Negative

• None.

Net interest margin fueled record financial performance as measured by multiple 3^rd quarter 2022 key metrics:

• 1.70% Return on average assets
• 16.13% Return on average equity
• 4.14% Net interest margin
• $0.97 Per-share earnings (basic and diluted)

FAIRFAX, Va., Oct. 17, 2022 /PRNewswire/ -- MainStreet Bancshares, Inc. (Nasdaq: MNSB & MNSBP), the holding company for MainStreet Bank, reported continued strong financial performance through the third quarter as earnings on its floating-rate loans rose in-sync with FOMC interest rate increases.

Although we benefit from rising rates, we are hopeful that the FOMC reacts quickly when they achieve the neutral rate

Rising rates on a loan portfolio largely designed to flex with market rates sent loan interest income to $20.3 million in the third quarter. This is 13% higher than the second quarter of 2022 and 34% higher than the third quarter of 2021.

The Company recorded net income of $7.2 million for the quarter ending September 30, 2022. Net income was up 34% from the second quarter and 62% from the year-earlier third quarter. The net interest margin widened to 4.14%, at September 30, 2022, up 84 basis points from a year earlier. The Company's efficiency ratio was stellar at 50.88%.

"Year-to-date earnings per share are $2.31, and we are forecasting $3.25 for the year, assuming loan growth remains consistent with previous quarters," said Jeff W. Dick, Chairman and CEO of MainStreet Bancshares, Inc. and MainStreet Bank.  "Although the Company benefits from a rising interest rate environment, we remain hopeful that the FOMC will react quickly as and when they identify and achieve the neutral rate."

The loan portfolio has grown 8% since the beginning of 2022, and total assets are approaching $1.9 billion.  Asset quality remains pristine, with zero non-performing assets as of quarter-ended September 30. Noninterest-bearing deposits represent 36% of the $1.6 billion in total deposits, and 71% of total deposits are core deposits.

"We continue to experience solid organic growth in deposits to support our lending," said Abdul Hersiburane, President of MainStreet Bank.  "The Washington, D.C., branch has proven to be a particularly strong funnel for new business - especially construction lending and government contract lending opportunities," Hersiburane added.

The level of Accumulated Other Comprehensive Income (AOCI) for the Company remains low at -5.13% of total capital.

The Company will discuss quarterly and year-to-date earnings and preview business developments with Avenu™ during their virtual quarterly earnings call at 2 p.m. Eastern time today.      

Avenu^™ - Banking Delivered
Avenu^™ offers the only embedded banking solution that connects our partners and their app's directly and seamlessly to a banking core -- our 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, DC.

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 serving our community and long-term business relationships.

"We are currently onboarding our initial beta customers with an anticipated go-live date around year-end 2022," said Todd Youngren, President of Avenu™.  "Clients are telling us they see unique value in our risk- and compliance-centric approach, which is a critical consideration whenever handling other people's money," he added.

To learn more about Avenu^™, visit Avenu.bank and join the queue today.

ABOUT MAINSTREET BANK:  MainStreet operates six branches in Herndon, Fairfax, McLean, Leesburg, Clarendon, and Washington DC.  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.  

 

UNAUDITED CONSOLIDATED BALANCE SHEET INFORMATION
(In thousands)
		September 30, 2022				June 30, 2022				March 31, 2022				December 31, 2021				September 30, 2021
ASSETS
Cash and cash equivalents
Cash and due from banks		$	50,636			$	55,636			$	63,986			$	61,827			$	67,992
Federal funds sold			54,098				47,013				37,756				31,372				65,725
Total cash and cash equivalents			104,734				102,649				101,742				93,199				133,717
Investment securities available for sale, at fair value			162,319				143,240				123,802				99,913				171,603
Investment securities held to maturity, at carrying value			17,670				17,698				18,769				20,349				21,148
Restricted equity securities, at cost			16,436				16,485				17,209				15,609				9,972
Loans, net of allowance for loan losses of $12,994, $12,982, $12,500,$11,697, and $11,428, respectively			1,448,071				1,416,875				1,413,238				1,341,760				1,246,331
Premises and equipment, net			14,523				14,756				14,833				14,863				14,795
Other real estate owned, net			—				—				—				775				1,158
Accrued interest and other receivables			8,273				7,313				6,980				7,701				4,718
Computer software, net of amortization			7,258				4,956				3,906				2,493				1,165
Bank owned life insurance			36,996				36,742				36,492				36,241				35,987
Other assets			43,835				32,665				24,777				14,499				16,605
Total Assets		$	1,860,115			$	1,793,379			$	1,761,748			$	1,647,402			$	1,657,199
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Non-interest bearing deposits		$	566,016			$	535,591			$	514,160			$	530,678			$	475,157
Interest bearing DDA deposits			93,695				99,223				76,286				69,232				63,622
Savings and NOW deposits			54,240				58,156				81,817				85,175				79,556
Money market deposits			254,190				231,207				301,842				267,730				310,776
Time deposits			585,783				575,950				460,839				459,148				485,255
Total deposits			1,553,924				1,500,127				1,434,944				1,411,963				1,414,366
Federal Home Loan Bank advances and other borrowings			—				—				40,000				—				—
Subordinated debt			72,146				72,047				71,955				29,294				40,635
Other liabilities			44,045				32,801				26,053				17,357				18,169
Total Liabilities			1,670,115				1,604,975				1,572,952				1,458,614				1,473,170
Stockholders' Equity:
Preferred stock			27,263				27,263				27,263				27,263				27,263
Common stock			28,728				29,178				29,642				29,466				29,462
Capital surplus			63,231				64,822				66,798				67,668				67,152
Retained earnings			80,534				73,702				68,691				64,194				59,920
Accumulated other comprehensive income (loss)			(9,756)				(6,561)				(3,598)				197				232
Total Stockholders' Equity			190,000				188,404				188,796				188,788				184,029
Total Liabilities and Stockholders' Equity		$	1,860,115			$	1,793,379			$	1,761,748			$	1,647,402			$	1,657,199

 

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME INFORMATION
(In thousands, except share and per share data)
		Year-to-Date								Three Months Ended
		September 30, 2022				September 30, 2021				September 30, 2022				June 30, 2022				March 31, 2022				December 31, 2021				September 30, 2021
INTEREST INCOME:
Interest and fees on loans		$	54,900			$	46,211			$	20,261			$	17,954			$	16,685			$	15,532			$	15,162
Interest on investment securities
Taxable securities			1,136				910				378				401				357				327				318
Tax-exempt securities			796				802				261				263				272				283				267
Interest on federal funds sold			1,241				73				1,013				195				34				61				38
Total interest income			58,073				47,996				21,913				18,813				17,348				16,203				15,785
INTEREST EXPENSE:
Interest on interest bearing DDA deposits			345				170				175				105				65				59				60
Interest on savings and NOW deposits			122				127				43				42				37				38				38
Interest on money market deposits			766				645				496				151				119				127				148
Interest on time deposits			5,236				6,039				2,275				1,530				1,431				1,574				1,795
Interest on Federal Home Loan Bank advances and other borrowings			83				—				—				52				31				—				—
Interest on subordinated debt			2,108				1,346				828				812				468				539				541
Total interest expense			8,660				8,327				3,817				2,692				2,151				2,337				2,582
Net interest income			49,413				39,669				18,096				16,121				15,197				13,866				13,203
Provision for (recovery of) loan losses			1,280				(1,470)				—				480				800				295				290
Net interest income after provision for (recovery of) loan losses			48,133				41,139				18,096				15,641				14,397				13,571				12,913
NON-INTEREST INCOME:
Deposit account service charges			1,810				1,802				601				597				611				624				642
Bank owned life insurance income			754				647				254				250				251				253				252
Loan swap fee income			619				—				518				101				—				83				—
Net gain on held-to-maturity securities			4				3				—				4				—				3				—
Net gain (loss) on sale of loans			(168)				434				(211)				—				43				413				(40)
Other fee income			754				1,601				186				312				257				247				632
Total other income			3,773				4,487				1,348				1,264				1,162				1,623				1,486
NON-INTEREST EXPENSES:
Salaries and employee benefits			17,025				14,276				5,874				5,604				5,548				5,029				4,847
Furniture and equipment expenses			2,076				1,743				760				659				657				726				716
Advertising and marketing			1,684				1,115				704				574				406				450				438
Occupancy expenses			1,093				1,092				400				352				341				449				399
Outside services			1,545				908				611				567				368				485				292
Administrative expenses			658				493				253				195				210				192				202
Other operating expenses			4,268				4,517				1,291				1,543				1,433				1,389				1,567
Total other expenses			28,349				24,144				9,893				9,494				8,963				8,720				8,461
Income before income tax expense			23,557				21,482				9,551				7,411				6,596				6,474				5,938
Income tax expense			4,462				4,124				1,808				1,481				1,173				1,660				1,155
Net income			19,095				17,358				7,743				5,930				5,423				4,814				4,783
Preferred stock dividends			1,617				1,617				539				539				539				539				539
Net income available to common shareholders		$	17,478			$	15,741			$	7,204			$	5,391			$	4,884			$	4,275			$	4,244
Net income per common share, basic and diluted		$	2.31			$	2.09			$	0.97			$	0.71			$	0.64			$	0.56			$	0.56
Weighted average number of common shares, basic and diluted			7,561,567				7,547,254				7,463,719				7,575,484				7,647,519				7,595,062				7,571,214

 

UNAUDITED LOAN, DEPOSIT AND BORROWING DETAIL
(In thousands)
		September 30, 2022								June 30, 2022								September 30, 2021								Percentage Change
		$ Amount				% of Total				$ Amount				% of Total				$ Amount				% of Total				Last 3 Mos				Last 12 Mos
LOANS:
Construction and land development loans		$	366,689				25.0	%		$	358,062				25.0	%		$	327,004				25.9	%			2.4	%			12.1	%
Residential real estate loans			373,056				25.4	%			366,758				25.6	%			223,029				17.6	%			1.7	%			67.3	%
Commercial real estate loans			638,110				43.5	%			599,683				41.8	%			494,766				39.1	%			6.4	%			29.0	%
Commercial industrial loans - Other			74,482				5.1	%			92,672				6.5	%			191,281				15.1	%			-19.6	%			-61.1	%
Consumer loans			13,628				1.0	%			17,223				1.1	%			27,740				2.3	%			-20.9	%			-50.9	%
Total Gross Loans		$	1,465,965				100.0	%		$	1,434,398				100.0	%		$	1,263,820				100.0	%			2.2	%			16.0	%
Less: Allowance for loan losses			(12,994)								(12,982)								(11,428)
Net deferred loan fees			(4,900)								(4,541)								(6,061)
Net Loans		$	1,448,071							$	1,416,875							$	1,246,331
DEPOSITS:
Non-interest bearing demand deposits		$	566,016				36.4	%		$	535,591				35.7	%		$	475,157				33.6	%			5.7	%			19.1	%
Interest-bearing demand deposits:
Demand deposits			93,695				6.0	%			99,223				6.6	%			63,622				4.5	%			-5.6	%			47.3	%
Savings and NOW deposits			54,240				3.5	%			58,156				3.9	%			79,556				5.6	%			-6.7	%			-31.8	%
Money market accounts			254,190				16.4	%			231,207				15.4	%			310,776				22.0	%			9.9	%			-18.2	%
Certificates of deposit $250,000 or more			371,739				23.9	%			383,340				25.6	%			295,454				20.9	%			-3.0	%			25.8	%
Certificates of deposit less than $250,000			214,044				13.8	%			192,610				12.8	%			189,801				15.4	%			11.1	%			12.8	%
Total Deposits		$	1,553,924				100.0	%		$	1,500,127				100.0	%		$	1,414,366				100.0	%			3.6	%			9.9	%
BORROWINGS:
Subordinated debt			72,146				100.0	%			72,047				100.0	%			40,635				100.0	%			0.1	%			77.5	%
Total Borrowings		$	72,146				100.0	%		$	72,047				100.0	%		$	40,635				100.0	%			0.1	%			77.5	%
Total Deposits and Borrowings		$	1,626,070							$	1,572,174							$	1,455,001								3.4	%			11.8	%
Core customer funding sources (1)		$	1,156,862				71.1	%		$	1,094,493				69.6	%		$	1,097,948				75.5	%			5.7	%			5.4	%
Brokered and listing service sources (2)			397,062				24.4	%			405,634				25.8	%			316,418				21.7	%			-2.1	%			25.5	%
Subordinated debt (3)			72,146				4.4	%			72,047				4.6	%			40,635				2.8	%			0.1	%			77.5	%
Total Funding Sources		$	1,626,070				100.0	%		$	1,572,174				100.0	%		$	1,455,001				100.0	%			3.4	%			11.8	%

 

(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 September 30, 2022												For the three months ended September 30, 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)		$	1,446,679			$	20,261				5.56	%		$	1,258,485			$	15,162				4.78	%
Securities:
Taxable			73,914				378				2.03	%			66,309				318				1.90	%
Tax-exempt			38,074				330				3.44	%			36,584				338				3.67	%
Federal funds and interest-bearing deposits			182,331				1,013				2.20	%			234,363				38				0.06	%
Total interest earning assets		$	1,740,998			$	21,982				5.01	%		$	1,595,741			$	15,856				3.94	%
Other assets			61,479												88,521
Total assets		$	1,802,477											$	1,684,262
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Interest-bearing demand deposits		$	93,569			$	175				0.74	%		$	64,966			$	60				0.37	%
Savings and NOW deposits			55,100				43				0.31	%			75,968				38				0.20	%
Money market deposit accounts			257,091				496				0.77	%			302,848				148				0.19	%
Time deposits			575,832				2,275				1.57	%			507,254				1,795				1.40	%
Total interest-bearing deposits		$	981,592			$	2,989				1.21	%		$	951,036			$	2,041				0.85	%
Federal funds purchased			2				—				—				2				—				—
Subordinated debt			72,107				828				4.56	%			40,609				541				5.29	%
Total interest-bearing liabilities		$	1,053,701			$	3,817				1.44	%		$	991,647			$	2,582				1.03	%
Demand deposits and other liabilities			558,337												510,008
Total liabilities		$	1,612,038											$	1,501,655
Stockholders' Equity			190,439												182,607
Total Liabilities and Stockholders' Equity		$	1,802,477											$	1,684,262
Interest Rate Spread											3.59	%											2.91	%
Net Interest Income						$	18,165											$	13,274
Net Interest Margin											4.14	%											3.30	%

 

(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 nine months ended September 30, 2022												For the nine months ended September 30, 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)		$	1,420,013			$	54,900				5.17	%		$	1,293,359			$	46,211				4.78	%
Securities:
Taxable			73,496				1,136				2.07	%			57,838				910				2.10	%
Tax-exempt			38,703				1,008				3.48	%			36,737				1,015				3.69	%
Federal funds and interest-bearing deposits			121,832				1,241				1.36	%			224,521				73				0.04	%
Total interest earning assets		$	1,654,044			$	58,285				4.71	%		$	1,612,455			$	48,209				4.00	%
Other assets			71,361												76,758
Total assets		$	1,725,405											$	1,689,213
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Interest-bearing demand deposits		$	86,836			$	345				0.53	%		$	67,345			$	170				0.34	%
Savings and NOW deposits			66,714				122				0.24	%			72,591				127				0.23	%
Money market deposit accounts			252,992				766				0.40	%			345,662				645				0.25	%
Time deposits			511,242				5,236				1.37	%			508,722				6,039				1.59	%
Total interest-bearing deposits		$	917,784			$	6,469				0.94	%		$	994,320			$	6,981				0.94	%
Federal funds and repos purchased			2				—				—				1				—				—
Subordinated debt			62,807				2,108				4.49	%			31,815				1,346				5.66	%
FHLB borrowings			24,011				83				0.46	%			—				—				—
Total interest-bearing liabilities		$	1,004,604			$	8,660				1.15	%		$	1,026,136			$	8,327				1.08	%
Demand deposits and other liabilities			531,115												486,510
Total liabilities		$	1,535,719											$	1,512,646
Stockholders' Equity			189,686												176,567
Total Liabilities and Stockholders' Equity		$	1,725,405											$	1,689,213
Interest Rate Spread											3.58	%											2.92	%
Net Interest Income						$	49,625											$	39,882
Net Interest Margin											4.01	%											3.31	%

 

(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 Nine Months Ended
		September 30,								September 30,
		2022				2021				2022				2021
Per share Data and Shares Outstanding
Earnings per common share (basic and diluted)		$	0.97			$	0.56			$	2.31			$	2.09
Book value per common share		$	21.92			$	20.64			$	21.92			$	20.64
Tangible book value per common share(2)		$	20.94			$	20.64			$	20.94			$	20.64
Weighted average common shares (basic and diluted)			7,463,719				7,571,214				7,561,567				7,547,254
Common shares outstanding at end of period			7,425,432				7,593,749				7,425,432				7,593,749
Performance Ratios
Return on average assets (annualized)			1.70	%			1.13	%			1.48	%			1.37	%
Return on average equity (annualized)			16.13	%			10.39	%			13.46	%			13.14	%
Return on average common equity (annualized)			17.52	%			10.84	%			14.39	%			14.09	%
Yield on earning assets (FTE) (2) (annualized)			5.01	%			3.94	%			4.71	%			4.00	%
Cost of interest bearing liabilities (annualized)			1.44	%			1.03	%			1.15	%			1.08	%
Net interest spread (FTE)(2)			3.59	%			2.91	%			3.58	%			2.92	%
Net interest margin (FTE)(2) (annualized)			4.14	%			3.30	%			4.01	%			3.31	%
Noninterest income as a percentage of average assets (annualized)			0.30	%			0.35	%			0.29	%			0.36	%
Noninterest expense to average assets (annualized)			2.18	%			1.99	%			2.20	%			1.91	%
Efficiency ratio(3)			50.88	%			57.60	%			53.30	%			54.68	%
Asset Quality
Commercial real estate loans to total capital (4)			370.05	%			341.44	%			370.05	%			341.44	%
Construction loans to total capital (5)			137.51	%			150.42	%			137.51	%			150.42	%
Loans 30-89 days past due to total gross loans			0.19	%			0.00	%			0.19	%			0.00	%
Loans 90 days past due to total gross loans			0.02	%			0.00	%			0.02	%			0.00	%
Non-accrual loans to total gross loans			0.00	%			0.00	%			0.00	%			0.00	%
Other real estate owned		$	—			$	1,158			$	—			$	1,158
Non-performing assets		$	—			$	1,158			$	—			$	1,158
Non-performing assets to total assets			0.00	%			0.07	%			0.00	%			0.07	%
Allowance for loan losses to total gross loans			0.89	%			0.90	%			0.89	%			0.90	%
Allowance for loan losses to non-performing assets			N/A				9.87				N/A				9.87
Net loan recoveries		$	(13)			$	(5)			$	(18)			$	(21)
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			15.77	%			16.55	%			15.77	%			16.55	%
Tier 1 risk-based capital ratio			15.00	%			15.68	%			15.00	%			15.68	%
Leverage ratio			14.70	%			12.23	%			14.70	%			12.23	%
Common equity tier 1 ratio			15.00	%			15.68	%			15.00	%			15.68	%
Other information
Closing stock price		$	22.81			$	23.99			$	22.81			$	23.99
Equity / assets			10.25	%			11.10	%			10.21	%			11.10	%
Average equity / average assets			10.57	%			10.84	%			10.99	%			10.24	%
Number of full time equivalent employees			157				128				157				128
# Full service branch offices			6				6				6				6

 

(1)	Regulatory capital ratios as of September 30, 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 September 30,								For the nine months ended September 30,
		2022				2021				2022				2021
Net interest margin (FTE)
Net interest income (GAAP)		$	18,096			$	13,203			$	49,413			$	39,669
FTE adjustment on tax-exempt securities			69				71				212				213
Net interest income (FTE) (non-GAAP)			18,165				13,274				49,625				39,882
Average interest earning assets			1,740,998				1,595,741				1,654,044				1,612,455
Net interest margin (GAAP)			4.12	%			3.28	%			3.99	%			3.29	%
Net interest margin (FTE) (non-GAAP)			4.14	%			3.30	%			4.01	%			3.31	%

 

		For the three months ended September 30,								For the nine months ended September 30,
		2022				2021				2022				2021
Stockholders equity, adjusted
Total stockholders equity (GAAP)		$	190,000			$	184,029			$	190,000			$	184,029
Less: preferred stock			(27,263)				(27,263)				(27,263)				(27,263)
Total common stockholders equity (GAAP)			162,737				156,766			$	162,737			$	156,766
Less: intangible assets			7,258				1,165				7,258				1,165
Tangible common stockholders equity (non-GAAP)			155,479				155,601				155,479				155,601
Shares outstanding			7,425,432				7,593,749				7,425,432				7,593,749
Tangible book value per common share (non-GAAP)		$	20.94			$	20.49			$	20.94			$	20.64

 

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

 

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SOURCE MainStreet Bancshares, Inc.

FAQ

What were the earnings per share for MainStreet Bancshares in Q3 2022?

The earnings per share for MainStreet Bancshares in Q3 2022 were $0.97.

How did loan interest income perform in Q3 2022 compared to 2021?

Loan interest income in Q3 2022 was $20.3 million, a 34% increase compared to Q3 2021.

What is the forecast for MainStreet Bancshares' earnings per share for the year?

The forecast for earnings per share for MainStreet Bancshares for the year is $3.25.

What is the net interest margin for MainStreet Bancshares as of September 30, 2022?

The net interest margin for MainStreet Bancshares was 4.14% as of September 30, 2022.

How much did net income increase from the previous quarter to Q3 2022?

Net income increased by 34% from the previous quarter to $7.2 million in Q3 2022.