PR Newswire
FAIRFAX, Va., Oct. 23, 2023
Net Income Totals $6.3 Million for the Quarter Ended September 30
FAIRFAX, Va., Oct. 23, 2023 /PRNewswire/ -- MainStreet Bancshares, Inc. (Nasdaq: MNSB & MNSBP), the holding company for MainStreet Bank, reported net income of $6.3 million for the quarter ended September 30, 2023, in line with expectations. Earnings per share for the year-to-date stand at $2.64. Cumulative net income for the calendar year reached $21.4 million, a 12.3% increase over the first nine months of 2022.
Annualized returns through the first nine months included:
Return on Average Equity (ROAE): | 13.80 % |
Return on Average Assets (ROAA): | 1.50 % |
Net Interest Margin (NIM) (tax equivalent): | 4.28 % |
Efficiency Ratio: | 55.06 % |
Liquidity Coverage Ratio: | 164 % |
Core Deposit Ratio: | 68 % |
FDIC Insured Deposits / Total Deposits: | 76 % |
Allowance for Credit Losses (ACL): | 1.01 % |
Tangible Book Value per Common Share: | $23.00 |
"The Company continues to put up very strong performance metrics in spite of the rising interest rate environment," said Jeff W. Dick, Chairman and CEO of MainStreet Bancshares Inc. and MainStreet Bank. "The team did an excellent job preparing the balance sheet for a rising rate environment leading up to the first quarter of 2022. Since mid-2023, the team has been equally focused on neutralizing the balance sheet for a stable or slightly declining interest rate environment going forward."
"MainStreet Bank is a community bank built upon great relationships, and this continues to be a true testament to our financial strength. Our balance sheet continues to grow through the many thoughtful referrals from our existing customers and from our reputation in the markets we serve," said Abdul Hersiburane, President of MainStreet Bank.
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) | ||||||||||||||||||||||||||||||||||||||||
September | June 30, 2023 | March 31, 2023 | December | September | ||||||||||||||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | ||||||||||||||||||||||||||||||||||||||||
Cash and due from banks | $ | 44,912 | $ | 67,700 | $ | 225,334 | $ | 48,931 | $ | 50,636 | ||||||||||||||||||||||||||||||
Federal funds sold | 76,271 | 30,341 | — | 81,669 | 54,098 | |||||||||||||||||||||||||||||||||||
Total cash and cash equivalents | 121,183 | 98,041 | 225,334 | 130,600 | 104,734 | |||||||||||||||||||||||||||||||||||
Investment securities available for sale, at fair value | 56,726 | 60,579 | 63,209 | 62,631 | 162,319 | |||||||||||||||||||||||||||||||||||
Investment securities held to maturity, at amortized cost, net of allowance for credit losses of $0 for all periods | 17,565 | 17,590 | 17,616 | 17,642 | 17,670 | |||||||||||||||||||||||||||||||||||
Restricted equity securities, at amortized cost | 20,619 | 20,304 | 22,436 | 24,325 | 16,436 | |||||||||||||||||||||||||||||||||||
Loans, net of allowance for credit losses of $15,626, $16,047, $15,435, $14,114, and $12,994, respectively | 1,681,444 | 1,637,484 | 1,617,275 | 1,579,950 | 1,448,071 | |||||||||||||||||||||||||||||||||||
Premises and equipment, net | 14,275 | 14,427 | 14,521 | 14,709 | 14,523 | |||||||||||||||||||||||||||||||||||
Accrued interest and other receivables | 11,184 | 10,256 | 9,744 | 9,581 | 8,273 | |||||||||||||||||||||||||||||||||||
Computer software, net of amortization | 13,373 | 12,266 | 10,559 | 9,149 | 7,258 | |||||||||||||||||||||||||||||||||||
Bank owned life insurance | 38,035 | 37,763 | 37,503 | 37,249 | 36,996 | |||||||||||||||||||||||||||||||||||
Other assets | 47,087 | 40,641 | 36,811 | 39,915 | 43,835 | |||||||||||||||||||||||||||||||||||
Total Assets | $ | 2,021,491 | $ | 1,949,351 | $ | 2,055,008 | $ | 1,925,751 | $ | 1,860,115 | ||||||||||||||||||||||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||||||||||
Non-interest bearing deposits | $ | 394,859 | $ | 388,992 | $ | 487,875 | $ | 550,690 | $ | 566,016 | ||||||||||||||||||||||||||||||
Interest bearing demand deposits | 76,423 | 71,308 | 100,522 | 80,099 | 93,695 | |||||||||||||||||||||||||||||||||||
Savings and NOW deposits | 46,550 | 51,294 | 53,499 | 51,419 | 54,240 | |||||||||||||||||||||||||||||||||||
Money market deposits | 461,398 | 380,500 | 260,316 | 222,540 | 254,190 | |||||||||||||||||||||||||||||||||||
Time deposits | 703,960 | 701,289 | 730,076 | 608,141 | 585,783 | |||||||||||||||||||||||||||||||||||
Total deposits | 1,683,190 | 1,593,383 | 1,632,288 | 1,512,889 | 1,553,924 | |||||||||||||||||||||||||||||||||||
Federal funds borrowed | — | 30,000 | 60,696 | — | — | |||||||||||||||||||||||||||||||||||
Federal Home Loan Bank advances | — | — | 45,000 | 100,000 | — | |||||||||||||||||||||||||||||||||||
Subordinated debt | 72,543 | 72,444 | 72,344 | 72,245 | 72,146 | |||||||||||||||||||||||||||||||||||
Other liabilities | 52,015 | 43,016 | 39,692 | 42,335 | 44,045 | |||||||||||||||||||||||||||||||||||
Total Liabilities | 1,807,748 | 1,738,843 | 1,850,020 | 1,727,469 | 1,670,115 | |||||||||||||||||||||||||||||||||||
Stockholders' Equity: | ||||||||||||||||||||||||||||||||||||||||
Preferred stock | 27,263 | 27,263 | 27,263 | 27,263 | 27,263 | |||||||||||||||||||||||||||||||||||
Common stock | 29,188 | 29,177 | 29,185 | 28,736 | 28,728 | |||||||||||||||||||||||||||||||||||
Capital surplus | 65,407 | 64,768 | 64,213 | 63,999 | 63,231 | |||||||||||||||||||||||||||||||||||
Retained earnings | 102,694 | 97,646 | 91,991 | 86,830 | 80,534 | |||||||||||||||||||||||||||||||||||
Accumulated other comprehensive loss | (10,809) | (8,346) | (7,664) | (8,546) | (9,756) | |||||||||||||||||||||||||||||||||||
Total Stockholders' Equity | 213,743 | 210,508 | 204,988 | 198,282 | 190,000 | |||||||||||||||||||||||||||||||||||
Total Liabilities and Stockholders' Equity | $ | 2,021,491 | $ | 1,949,351 | $ | 2,055,008 | $ | 1,925,751 | $ | 1,860,115 |
*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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
September | September | September | June 30, 2023 | March 31, 2023 | December | September | ||||||||||||||||||||||||||||||||||||||||||||||||||
INTEREST INCOME: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest and fees on loans | $ | 85,336 | $ | 54,900 | $ | 29,750 | $ | 28,855 | $ | 26,731 | $ | 23,972 | $ | 20,261 | ||||||||||||||||||||||||||||||||||||||||||
Interest on investment securities |