MainStreet Bancshares Inc. Delivered Consistent 2023 Earnings Despite Market Turmoil
Year-End and Fourth Quarter Results Underscore Steady Progress in Challenging Environment
FAIRFAX, Va., Jan. 22, 2024 /PRNewswire/ -- MainStreet Bancshares, Inc. (Nasdaq: MNSB & MNSBP), the holding company for MainStreet Bank, reported net income of $26.6 million for the year ended December 31, 2023, consistent with expectations. Earnings per share for the year totaled $3.25.
Annualized returns for 2023 included:
Return on Average Equity (ROAE):
12.66 %
Return on Average Assets (ROAA):
1.38 %
Net Interest Margin (NIM) (tax equivalent):
4.08 %
Efficiency Ratio:
56.7 %
Liquidity Coverage Ratio:
133 %
Core Deposit Ratio:
74 %
FDIC Insured Deposits / Total Deposits:
77 %
Allowance for Credit Losses (ACL):
1.01 %
Tangible Book Value per Common Share:
$23.86
"We've maintained a steady course, meeting customer credit needs and delivering healthy shareholder value at a time when community banks across our region and the nation face intense headwinds," said Jeff W. Dick, Chairman and CEO of MainStreet Bancshares Inc. and MainStreet Bank.
"It's worth reflecting on what an extraordinarily challenging year this was," he continued. "In the first quarter of 2023, we witnessed the second, third, and fourth largest bank failures in U.S. history. The fallout increased the impact of historically steep interest rate hikes. Yet MainStreet Bancshares has not just persevered but prospered. We see a bright future for all facets of our business, and we continue to invest in innovation as our Avenu embedded banking solution comes to fruition."
Strong Fundamentals "Our core banking business is thriving," added Abdul Hersiburane, MainStreet Bank's President. "Core deposits rose to 74% in the fourth quarter, up from 68% in the third quarter, and in the same period our wholesale deposits declined from 31% to 24%. Net loans, meanwhile, were up 8% for the year."
The Company's loan book totaled $1.73 billion at the end of 2023, and concentrations are well managed, with commercial real estate standing at 373% of total capital, below the board-set limit of 375%. The quality of the loan portfolio remained pristine, with negligible net chargeoffs and past-due loans.
The cumulative net interest margin rested at 4.08% for the year, as funding costs began to stabilize. While this measure has trended down quarter over quarter, the Company's levels have consistently remained higher than most of its peers due to strong balance sheet management.
Fortifying Avenu for Growth Since it went live in the third quarter, Avenu has continued to make progress in attracting and onboarding customers. Its inaugural client, Safari Pay, has now entered the beta stage and is gradually adding customers and conducting transactions. As Avenu ramps up and begins compliance reviews and onboarding with additional customers, the team will continue to harden and test systems and fortify the operation to scale up.
"We set out to build from scratch a compliance-centric system that can connect our partners and their apps directly and seamlessly to MainStreet Bank's banking core," Dick noted. "This was never a modest task because we weren't interested in jumping onboard the middleware bandwagon. We wanted to build our embedded banking solution with meticulous care, bringing our deep understanding of regulatory and business challenges to bear. We are confident that our embedded banking solution will prove innovative and enhance MainStreet Bank's deposit growth and support expanded lending."
ABOUT AVENU Avenu, MainStreet Bank's fully integrated Software as a Service (SaaS) solution, identified its first client on October 18. SafariPay, via its global money transmittance service PaySii, expects its customers to maintain average balances of $4 million on the platform.
Avenu - Banking Delivered Avenu is the only embedded banking solution that connects our partners and their apps directly and seamlessly to a banking core - MainStreet Bank's banking core. We are not a sponsor bank without our own technology, and we are not a middleware software company (aggregator) without our own bank. We are Avenu, a leading financial technology company backed by an established community business bank in the heart of Washington, D.C.
Avenu - Serving a Community of Innovation Our clients are fintechs, application developers, money movers, and entrepreneurs. They all have one thing in common: They are innovating how money moves to solve real-world issues and help communities thrive. We are focused on servicing our community and long-term business relationships.
ABOUT MAINSTREET BANK: MainStreet operates six branches in Herndon, Fairfax, McLean, Leesburg, Clarendon, and Washington, D.C. MainStreet Bank has 55,000 free ATMs and a fully integrated online and mobile banking solution. The Bank is not restricted by a conventional branching system, as it can offer business customers the ability to Put Our Bank in Your Office®. With robust and easy-to-use online business banking technology, MainStreet has "put our bank" in thousands of businesses in the metropolitan area.
MainStreet Bank has a robust line of business and professional lending products, including government contracting lines of credit, commercial lines and term loans, residential and commercial construction, and commercial real estate. MainStreet also works with the SBA to offer 7A and 504 lending solutions. From sophisticated cash management to enhanced mobile banking and instant-issue Debit Cards, MainStreet Bank is always looking for ways to improve our customer's experience.
MainStreet Bank was the first community bank in the Washington, D.C., metropolitan area to offer a full online business banking solution. MainStreet Bank was also the first bank headquartered in the Commonwealth of Virginia to offer CDARS - a solution that provides multi-million-dollar FDIC insurance. Further information on the Bank can be obtained by visiting its website at mstreetbank.com.
This release contains forward-looking statements, including our expectations with respect to future events that are subject to various risks and uncertainties. The statements contained in this release that are not historical facts are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Words such as "may," "will," "could," "should," "expect," "plan," "project," "intend," "anticipate," "believe," "estimate," "predict," "potential," "pursuant," "target," "continue," and similar expressions are intended to identify such forward-looking statements. Factors that could cause actual results to differ materially from management's projections, forecasts, estimates and expectations include: fluctuation in market rates of interest and loan and deposit pricing, adverse changes in the overall national economy as well as adverse economic conditions in our specific market areas, future impacts of the novel coronavirus (COVID-19) outbreak, maintenance and development of well-established and valued client relationships and referral source relationships, and acquisition or loss of key production personnel. We caution readers that the list of factors above is not exclusive. The forward-looking statements are made as of the date of this release, and we may not undertake steps to update the forward-looking statements to reflect the impact of any circumstances or events that arise after the date the forward-looking statements are made. In addition, our past results of operations are not necessarily indicative of future performance.
MainStreet Bancshares, Inc.
UNAUDITED CONSOLIDATED BALANCE SHEET INFORMATION
(In thousands)
December 31, 2023
September 30, 2023
June 30, 2023
March 31, 2023
December 31, 2022*
ASSETS
Cash and cash equivalents
Cash and due from banks
$
53,581
$
44,912
$
67,700
$
225,334
$
48,931
Federal funds sold
60,932
76,271
30,341
-
81,669
Total cash and cash equivalents
114,513
121,183
98,041
225,334
130,600
Investment securities available for sale, at fair value
59,928
56,726
60,579
63,209
62,631
Investment securities held to maturity, at amortized cost, net of allowance for credit losses of $0 for all periods
17,275
17,565
17,590
17,616
17,642
Restricted equity securities, at amortized cost
24,356
20,619
20,304
22,436
24,325
Loans, net of allowance for credit losses of $16,506, $15,626, $16,047, $15,435, and $14,114, respectively
1,705,137
1,681,444
1,637,484
1,617,275
1,579,950
Premises and equipment, net
13,944
14,275
14,427
14,521
14,709
Accrued interest and other receivables
12,390
11,184
10,256
9,744
9,581
Computer software, net of amortization
14,657
13,373
12,266
10,559
9,149
Bank owned life insurance
38,318
38,035
37,763
37,503
37,249
Other assets
34,914
47,087
40,641
36,811
39,915
Total Assets
$
2,035,432
$
2,021,491
$
1,949,351
$
2,055,008
$
1,925,751
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Non-interest bearing deposits
$
364,606
$
394,859
$
388,992
$
487,875
$
550,690
Interest bearing demand deposits
137,128
76,423
71,308
100,522
80,099
Savings and NOW deposits
45,878
46,550
51,294
53,499
51,419
Money market deposits
442,179
461,398
380,500
260,316
222,540
Time deposits
696,336
703,960
701,289
730,076
608,141
Total deposits
1,686,127
1,683,190
1,593,383
1,632,288
1,512,889
Federal funds borrowed
15,000
-
30,000
60,696
-
Federal Home Loan Bank advances
-
-
-
45,000
100,000
Subordinated debt
72,642
72,543
72,444
72,344
72,245
Other liabilities
40,146
52,015
43,016
39,692
42,335
Total Liabilities
1,813,915
1,807,748
1,738,843
1,850,020
1,727,469
Stockholders' Equity:
Preferred stock
27,263
27,263
27,263
27,263
27,263
Common stock
29,198
29,188
29,177
29,185
28,736
Capital surplus
65,985
65,407
64,768
64,213
63,999
Retained earnings
106,549
102,694
97,646
91,991
86,830
Accumulated other comprehensive loss
(7,478)
(10,809)
(8,346)
(7,664)
(8,546)
Total Stockholders' Equity
221,517
213,743
210,508
204,988
198,282
Total Liabilities and Stockholders' Equity
$
2,035,432
$
2,021,491
$
1,949,351
$
2,055,008
$
1,925,751
*Derived from audited financial statements
MainStreet Bancshares, Inc.
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME INFORMATION
(In thousands, except share and per share data)
Year-to-Date
Three Months Ended
December 31, 2023
December 31, 2022
December 31, 2023
September 30, 2023
June 30, 2023
March 31, 2023
December 31, 2022
INTEREST INCOME:
Interest and fees on loans
$
116,184
$
78,872
$
30,849
$
29,750
$
28,855
$
26,731
$
23,972
Interest on investment securities
Taxable securities
1,836
1,603
451
459
407
518
467
Tax-exempt securities
1,065
1,058
268
268
265
264
262
Interest on federal funds sold
5,038
2,312
1,510
1,217
1,179
1,132
1,071
Total interest income
124,123
83,845
33,078
31,694
30,706
28,645
25,772
INTEREST EXPENSE:
Interest on interest bearing demand deposits
1,892
601
1,058
240
251
343
256
Interest on savings and NOW deposits
546
203
146
145
147
108
81
Interest on money market deposits
13,924
1,547
5,639
4,156
2,926
1,203
781
Interest on time deposits
27,003
8,202
8,257
7,526
7,077
4,144
2,966
Interest on federal funds borrowed
299
-
25
35
201
38
-
Interest on Federal Home Loan Bank advances
1,224
347
118
186
13
906
264
Interest on subordinated debt
3,288
2,936
828
828
820
812
828
Total interest expense
48,176
13,836
16,071
13,116
11,435
7,554
5,176
Net interest income
75,947
70,009
17,007
18,578
19,271
21,091
20,596
Provision for credit losses
1,642
2,398
466
255
638
283
1,118
Net interest income after provision for credit losses
74,305
67,611
16,541
18,323
18,633
20,808
19,478
NON-INTEREST INCOME:
Deposit account service charges
2,149
2,420
510
514
535
590
610
Bank owned life insurance income
1,069
1,008
283
272
259
255
253
Loan swap fee income
-
619
-
-
-
-
-
Net gain on held-to-maturity securities
-
4
-
-
-
-
-
Net loss on sale of loans
-
(168)
-
-
-
-
-
Other non-interest income
420
951
68
177
16
158
196
Total other income
3,638
4,834
861
963
810
1,003
1,059
NON-INTEREST EXPENSES:
Salaries and employee benefits
28,267
23,801
7,129
6,924
6,595
7,621
6,775
Furniture and equipment expenses
2,787
2,786
804
713
772
498
710
Advertising and marketing
2,343
2,304
271
577
698
797
620
Occupancy expenses
1,684
1,471
397
375
426
486
378
Outside services
2,044
2,075
352
697
504
490
529
Administrative expenses
922
872
219
277
211
215
214
Other operating expenses
7,072
5,748
1,964
1,866
1,646
1,596
1,481
Total non-interest expenses
45,119
39,057
11,136
11,429
10,852
11,703
10,707
Income before income tax expense
32,824
33,388
6,266
7,857
8,591
10,108
9,830
Income tax expense
6,239
6,714
1,120
1,516
1,645
1,957
2,252
Net income
26,585
26,674
5,146
6,341
6,946
8,151
7,578
Preferred stock dividends
2,156
2,156
539
539
539
539
539
Net income available to common shareholders
$
24,429
$
24,518
$
4,607
$
5,802
$
6,407
$
7,612
$
7,039
Net income per common share, basic and diluted
$
3.25
$
3.26
$
0.61
$
0.77
$
0.85
$
1.01
$
0.95
Weighted average number of common shares, basic and diluted
7,522,913
7,529,382
7,527,327
7,524,332
7,522,764
7,517,213
7,433,607
MainStreet Bancshares, Inc.
UNAUDITED LOAN, DEPOSIT AND BORROWING DETAIL
(In thousands)
December 31, 2023
September 30, 2023
December 31, 2022
Percentage Change
$ Amount
% of Total
$ Amount
% of Total
$ Amount
% of Total
Last 3 Mos
Last 12 Mos
LOANS:
Construction and land development loans
$
429,637
24.9
%
$
426,698
25.1
%
$
393,783
24.6
%
0.7
%
9.1
%
Residential real estate loans
474,602
27.5
%
462,935
27.2
%
394,394
24.7
%
2.5
%
20.3
%
Commercial real estate loans
743,827
43.1
%
734,615
43.1
%
700,728
43.8
%
1.3
%
6.2
%
Commercial and industrial loans
75,415
4.4
%
73,855
4.3
%
97,351
6.1
%
2.1
%
-22.5
%
Consumer loans
3,610
0.1
%
4,598
0.3
%
13,336
0.8
%
-21.5
%
-72.9
%
Total Gross Loans
$
1,727,091
100.0
%
$
1,702,701
100.0
%
$
1,599,592
100.0
%
1.4
%
8.0
%
Less: Allowance for credit losses
(16,506)
(15,626)
(14,114)
Net deferred loan fees
(5,448)
(5,631)
(5,528)
Net Loans
$
1,705,137
$
1,681,444
$
1,579,950
DEPOSITS:
Non-interest bearing deposits
$
364,606
21.6
%
$
394,859
23.5
%
$
550,690
36.4
%
-7.7
%
-33.8
%
Interest-bearing deposits:
Demand deposits
137,128
8.1
%
76,423
4.5
%
80,099
5.3
%
79.4
%
71.2
%
Savings and NOW deposits
45,878
2.7
%
46,550
2.8
%
51,419
3.4
%
-1.4
%
-10.8
%
Money market accounts
442,179
26.2
%
461,398
27.4
%
222,540
14.7
%
-4.2
%
98.7
%
Certificates of deposit $250,000 or more
442,662
26.3
%
432,440
25.7
%
370,005
24.5
%
2.4
%
19.6
%
Certificates of deposit less than $250,000
253,674
15.1
%
271,520
16.1
%
238,136
15.7
%
-6.6
%
6.5
%
Total Deposits
$
1,686,127
100.0
%
$
1,683,190
100.0
%
$
1,512,889
100.0
%
0.2
%
11.5
%
BORROWINGS:
Federal funds borrowed
15,000
17.1
%
-
0.0
%
-
0.0
%
100.0
%
100.0
%
Federal Home Loan Bank advances
-
0.0
%
-
0.0
%
100,000
58.1
%
-100.0
%
-100.0
%
Subordinated debt
72,642
82.9
%
72,543
100.0
%
72,245
41.9
%
0.1
%
0.5
%
Total Borrowings
$
87,642
100.0
%
$
72,543
100.0
%
$
172,245
100.0
%
20.8
%
-49.1
%
Total Deposits and Borrowings
$
1,773,769
$
1,755,733
$
1,685,134
1.0
%
5.3
%
Core customer funding sources (1)
$
1,252,534
70.7
%
$
1,144,513
65.2
%
$
1,157,573
68.7
%
9.4
%
8.2
%
Brokered and listing service sources (2)
433,593
24.4
%
538,677
30.7
%
355,316
21.1
%
-19.5
%
22.0
%
Federal funds borrowed
15,000
0.8
%
-
0.0
%
-
0.0
%
100.0
%
100.0
%
Federal Home Loan Bank advances
-
0.0
%
-
0.0
%
100,000
5.9
%
0.0
%
-100.0
%
Subordinated debt (3)
72,642
4.1
%
72,543
4.1
%
72,245
4.3
%
0.1
%
0.5
%
Total Funding Sources
$
1,773,769
100.0
%
$
1,755,733
100.0
%
$
1,685,134
100.0
%
1.0
%
5.3
%
(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.
Excludes $187.2 million in core deposits placed in reciprocal networks for FDIC insurance coverage that will be classified as brokered deposits on the call report in pursuent to rule 12 CFR 337.6(e) as of December 31, 2023.
(3)
Subordinated debt obligation qualifies as Tier 2 capital at the holding company and Tier 1 capital at the Bank
MainStreet Bancshares, Inc.
UNAUDITED AVERAGE BALANCE SHEETS, INTEREST AND RATES
(In thousands)
For the three months ended December 31, 2023
For the three months ended December 31, 2022
Average Balance
Interest Income/ Expense (3)(4)
Average Yields/ Rate (annualized) (3)(4)
Average Balance
Interest Income/ Expense (3)(4)
Average Yields/ Rate (annualized) (3)(4)
ASSETS:
Interest-earning assets:
Loans (1)(2)
$
1,720,790
$
30,849
7.11
%
$
1,510,087
$
23,972
6.30
%
Securities:
Taxable
67,494
451
2.65
%
70,776
467
2.62
%
Tax-exempt
37,614
339
3.58
%
38,007
332
3.46
%
Federal funds and interest-bearing deposits
114,421
1,510
5.24
%
124,865
1,071
3.40
%
Total interest-earning assets
$
1,940,319
$
33,149
6.78
%
$
1,743,735
$
25,842
5.88
%
Other assets
57,877
55,559
Total assets
$
1,998,196
$
1,799,294
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Interest-bearing demand deposits
$
98,021
$
1,058
4.28
%
$
81,724
$
256
1.24
%
Savings and NOW deposits
47,142
146
1.23
%
53,570
81
0.60
%
Money market deposit accounts
477,916
5,639
4.68
%
213,530
781
1.45
%
Time deposits
710,026
8,257
4.61
%
613,262
2,966
1.92
%
Total interest-bearing deposits
$
1,333,105
$
15,100
4.49
%
$
962,086
$
4,084
1.68
%
Federal funds borrowed
1,740
25
5.70
%
2
-
-
FHLB advances
8,424
118
5.56
%
23,913
264
4.38
%
Subordinated debt
72,603
828
4.52
%
72,206
828
4.55
%
Total interest-bearing liabilities
$
1,415,872
$
16,071
4.50
%
$
1,058,207
$
5,176
1.94
%
Demand deposits and other liabilities
365,655
546,827
Total liabilities
$
1,781,527
$
1,605,034
Stockholders' Equity
216,669
194,260
Total Liabilities and Stockholders' Equity
$
1,998,196
$
1,799,294
Interest Rate Spread
2.28
%
3.94
%
Net Interest Income
$
17,078
$
20,666
Net Interest Margin
3.49
%
4.70
%
(1)
Includes loans classified as non-accrual
(2)
Total loan interest income includes amortization of deferred loan fees, net of deferred loan costs
(3)
Income and yields for all periods presented are reported on a tax-equivalent basis using the federal statutory rate of 21%
(4)
Refer to Appendix for reconciliation of non-GAAP measures
MainStreet Bancshares, Inc.
UNAUDITED AVERAGE BALANCE SHEETS, INTEREST AND RATES
(In thousands)
For the year ended December 31, 2023
For the year ended December 31, 2022
Average Balance
Interest Income/ Expense (3)(4)
Average Yields/ Rate (annualized) (3)(4)
Average Balance
Interest Income/ Expense (3)(4)
Average Yields/ Rate (annualized) (3)(4)
ASSETS:
Interest-earning assets:
Loans (1)(2)
$
1,659,179
$
116,184
7.00
%
$
1,442,716
$
78,872
5.47
%
Securities:
Taxable
68,815
1,836
2.67
%
72,809
1,603
2.20
%
Tax-exempt
37,810
1,348
3.57
%
38,528
1,339
3.48
%
Federal funds and interest-bearing deposits
103,840
5,038
4.85
%
122,596
2,312
1.89
%
Total interest-earning assets
$
1,869,644
$
124,406
6.65
%
$
1,676,649
$
84,126
5.02
%
Other assets
62,161
67,380
Total assets
$
1,931,805
$
1,744,029
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Interest-bearing demand deposits
$
83,087
$
1,892
2.28
%
$
85,566
$
601
0.70
%
Savings and NOW deposits
49,565
546
1.10
%
63,401
203
0.32
%
Money market deposit accounts
365,815
13,924
3.81
%
137,066
1,547
1.13
%
Time deposits
702,034
27,003
3.85
%
642,918
8,202
1.28
%
Total interest-bearing deposits
$
1,200,501
$
43,365
3.61
%
$
928,951
$
10,553
1.14
%
Federal funds borrowed
5,583
299
5.36
%
2
-
-
FHLB advances
24,959
1,224
4.90
%
23,986
347
1.45
%
Subordinated debt
72,455
3,288
4.54
%
65,176
2,936
4.50
%
Total interest-bearing liabilities
$
1,303,498
$
48,176
3.70
%
$
1,018,115
$
13,836
1.36
%
Demand deposits and other liabilities
418,386
535,075
Total liabilities
$
1,721,884
$
1,553,190
Stockholders' Equity
209,921
190,839
Total Liabilities and Stockholders' Equity
$
1,931,805
$
1,744,029
Interest Rate Spread
2.95
%
3.66
%
Net Interest Income
$
76,230
$
70,290
Net Interest Margin
4.08
%
4.19
%
(1)
Includes loans classified as non-accrual
(2)
Total loan interest income includes amortization of deferred loan fees, net of deferred loan costs
(3)
Income and yields for all periods presented are reported on a tax-equivalent basis using the federal statutory rate of 21%
(4)
Refer to Appendix for reconciliation of non-GAAP measures
MainStreet Bancshares, Inc.
UNAUDITED SUMMARY FINANCIAL DATA
(Dollars in thousands except per share data)
At or For the Three Months Ended
At or For the Year Ended
December 31,
December 31,
2023
2022
2023
2022
Per share Data and Shares Outstanding
Earnings per common share (basic and diluted)
$
0.61
$
0.95
$
3.25
$
3.26
Book value per common share
$
25.81
$
22.98
$
25.81
$
22.98
Tangible book value per common share(2)
$
23.86
$
21.75
$
23.86
$
21.75
Weighted average common shares (basic and diluted)
7,527,327
7,433,607
7,522,913
7,529,382
Common shares outstanding at end of period
7,527,415
7,442,743
7,527,415
7,442,743
Performance Ratios
Return on average assets (annualized)
1.02
%
1.67
%
1.38
%
1.53
%
Return on average equity (annualized)
9.42
%
15.48
%
12.66
%
13.98
%
Return on average common equity (annualized)
9.65
%
16.72
%
13.37
%
14.99
%
Yield on earning assets (FTE) (2) (annualized)
6.78
%
5.88
%
6.65
%
5.02
%
Cost of interest bearing liabilities (annualized)
4.50
%
1.94
%
3.70
%
1.36
%
Net interest spread (FTE)(2)
2.28
%
3.94
%
2.95
%
3.66
%
Net interest margin (FTE)(2) (annualized)
3.49
%
4.70
%
4.08
%
4.19
%
Noninterest income as a percentage of average assets (annualized)
0.17
%
0.23
%
0.19
%
0.28
%
Noninterest expense to average assets (annualized)
2.21
%
2.36
%
2.34
%
2.24
%
Efficiency ratio(3)
62.33
%
49.45
%
56.69
%
52.19
%
Asset Quality
Allowance for credit losses (ACL)
Beginning balance, ACL - loans
$
15,626
$
12,994
$
14,114
$
11,697
Add: current expected credit losses, nonrecurring adoption
-
-
895
-
Add: recoveries
9
2
22
19
Less: charge-offs
(137)
-
(468)
-
Add: provision for (recovery of) credit losses - loans
1,008
1,118
1,943
2,398
Ending balance, ACL - loans
$
16,506
$
14,114
$
16,506
$
14,114
Beginning balance, reserve for unfunded commitment (RUC)
$
1,552
$
-
$
-
$
-
Add: current expected credit losses, nonrecurring adoption
-
-
1,310
-
Add: provision for (reversal of) unfunded commitments, net
(543)
-
(301)
-
Ending balance, RUC
$
1,009
$
-
$
1,009
$
-
Total allowance for credit losses
$
17,515
$
14,114
$
17,515
$
14,114
Allowance for credit losses on loans to total gross loans
0.96
%
0.88
%
0.96
%
0.88
%
Allowance for credit losses to total gross loans
1.01
%
0.89
%
1.01
%
0.89
%
Allowance for credit losses on loans to non-performing loans
16.44
N/A
16.44
N/A
Net charge-offs (recoveries) to average gross loans (annualized)
0.03
%
0.00
%
0.03
%
0.00
%
Concentration Ratios
Commercial real estate loans to total capital (4)
372.50
%
377.54
%
372.50
%
377.54
%
Construction loans to total capital (5)
137.67
%
137.41
%
137.67
%
137.41
%
Non-performing Assets
Loans 30-89 days past due to total gross loans
0.04
%
0.00
%
0.04
%
0.00
%
Loans 90 days past due to total gross loans
0.00
%
0.00
%
0.00
%
0.00
%
Non-accrual loans to total gross loans
0.06
%
0.00
%
0.06
%
0.00
%
Non-performing assets
$
1,004
$
-
$
1,004
$
-
Non-performing assets to total assets
0.05
%
0.00
%
0.05
%
0.00
%
Regulatory Capital Ratios (Bank only) (1)
Total risk-based capital ratio
17.18
%
16.27
%
17.18
%
16.27
%
Tier 1 risk-based capital ratio
16.22
%
15.47
%
16.22
%
15.47
%
Leverage ratio
14.66
%
15.05
%
14.66
%
15.05
%
Common equity tier 1 ratio
16.22
%
15.47
%
16.22
%
15.47
%
Other information
Closing stock price
$
24.81
$
27.49
$
24.81
$
27.49
Tangible equity / tangible assets (2)
10.24
%
9.87
%
10.24
%
9.87
%
Average tangible equity / average tangible assets (2)
10.22
%
10.39
%
10.31
%
10.66
%
Number of full time equivalent employees
186
168
186
168
Number of full service branch offices
6
6
6
6
(1)
Regulatory capital ratios as of December 31, 2023 are preliminary
(2)
Refer to Appendix for reconciliation of non-GAAP measures
(3)
Efficiency ratio is calculated as non-interest expense as a percentage of net interest income and non-interest income
(4)
Commercial real estate includes only non-owner occupied and construction loans as a percentage of Bank capital
(5)
Construction loans as a percentage of Bank capital
MainStreet Bancshares, Inc.
Unaudited Reconciliation of Certain Non-GAAP Financial Measures
(Dollars In thousands)
For the three months ended December 31,
For the year ended December 31,
2023
2022
2023
2022
Net interest margin (FTE)
Net interest income (GAAP)
$
17,007
$
20,596
$
75,947
$
70,009
FTE adjustment on tax-exempt securities
71
70
283
281
Net interest income (FTE) (non-GAAP)
17,078
20,666
76,230
70,290
Average interest earning assets
1,940,319
1,743,735
1,869,644
1,676,649
Net interest margin (GAAP)
3.48
%
4.69
%
4.06
%
4.18
%
Net interest margin (FTE) (non-GAAP)
3.49
%
4.70
%
4.08
%
4.19
%
For the three months ended December 31,
For the year ended December 31,
2023
2022
2023
2022
Yield on earning assets (FTE)
Total interest income
$
33,078
$
25,772
$
124,123
$
83,845
FTE adjustment on tax-exempt securities
71
70
283
281
Total interest income (FTE) (non-GAAP)
33,149
25,842
124,406
84,126
Average interest earning assets
1,940,319
1,743,735
1,869,644
1,676,649
Yield on earning assets (GAAP)
6.76
%
5.86
%
6.64
%
5.00
%
Yield on earning assets (FTE) (non-GAAP)
6.78
%
5.88
%
6.65
%
5.02
%
For the three months ended December 31,
For the year ended D ecember 31,
2023
2022
2023
2022
Net interest spread (FTE)
Yield on earning assets (GAAP)
6.76
%
5.86
%
6.64
%
5.00
%
Yield on earning assets (FTE) (non-GAAP)
6.78
%
5.88
%
6.65
%
5.02
%
Yield on interest-bearing liabilities
4.50
%
1.94
%
3.70
%
1.36
%
Net interest spread (GAAP)
2.26
%
3.92
%
2.94
%
3.64
%
Net interest spread (FTE) (non-GAAP)
2.28
%
3.94
%
2.95
%
3.66
%
As of December 31,
As of December 31,
2023
2022
2023
2022
Stockholders equity, adjusted
Total stockholders equity (GAAP)
$
221,517
$
198,282
$
221,517
$
198,282
Less: intangible assets
14,657
9,149
14,657
9,149
Tangible stockholders equity (non-GAAP)
206,860
189,133
$
206,860
$
189,133
Less: preferred stock
27,263
27,263
27,263
27,263
Tangible common stockholders equity (non-GAAP)
179,597
161,870
179,597
161,870
Common shares outstanding
7,527,415
7,442,743
7,527,415
7,442,743
Tangible book value per common share (non-GAAP)
$
23.86
$
21.75
$
23.86
$
21.75
As of December 31,
As of December 31,
2023
2022
2023
2022
Total assets, adjusted
Total assets (GAAP)
$
2,035,432
$
1,925,751
$
2,035,432
$
1,925,751
Less: intangible assets
(14,657)
(9,149)
(14,657)
(9,149)
Total tangible assets (non-GAAP)
2,020,775
1,916,602
2,020,775
1,916,602
For the three months ended December 31,
For the year ended December 31,
2023
2022
2023
2022
Average stockholders equity, adjusted
Total average stockholders equity (GAAP)
$
216,669
$
194,225
$
209,921
$
190,839
Less: average intangible assets
(13,929)
(8,143)
(11,996)
(5,471)
Total average tangible stockholders equity (non-GAAP)
202,740
186,082
197,925
185,368
For the three months ended December 31,
For the year ended December 31,
2023
2022
2023
2022
Average assets, adjusted
Total average average assets (GAAP)
$
1,998,196
$
1,799,259
$
1,931,805
$
1,744,029
Less: average intangible assets
(13,929)
(8,143)
(11,996)
(5,471)
Total average tangible assets (non-GAAP)
1,984,267
1,791,116
1,919,809
1,738,558
Contact: Debra Cope Director of Corporate Communications Desk (703) 481-4599 Mobile (202) 468-3184