Press Release

MainStreet Bancshares, Inc. Reports Pandemic's Impact on Second Quarter

Company Release - 7/29/2020 8:00 AM ET

FAIRFAX, Va., July 29, 2020 /PRNewswire/ -- MainStreet Bancshares, Inc. (Nasdaq: MNSB) reported a net loss of ($634,000) for the second quarter of 2020.  The loss is a result of a provision expense of $5.6 million made during the quarter largely related to the effects of the COVID-19 pandemic.  Year-to-date earnings remain positive and management is optimistic that future earnings will normalize if the pandemic is contained.

MainStreet Bank Headquarters 10089 Fairfax Blvd Fairfax, Virginia  22030 (PRNewsfoto/MainStreet Bancshares, Inc.)

Pre-Tax Pre-Provision (PTPP) Income was $4.7 million for the quarter-ended June 30, 20201. Which is a 2.47% increase from the first quarter of 2020.  PTPP Income held steady at $9.3 million for the six months ended June 30, 2020 as compared to the same period last year, in spite of the ongoing net interest income compression.  In addition, the Company will continue to recognize fee income from the Paycheck Protection Program (PPP), which is currently estimated at $5.765 million with $765,000 realized during the second quarter, which will effectively offset the second quarter provision expense.

For the six months ended June 30, 2020, the Company reported net income of $2.8 million, which represents a 0.40% return on average assets and 4.04% return on average equity, or $0.34 per share of common stock (basic and diluted).

Net interest income of $10.7 million and noninterest income of $1.3 million continued to trend favorably and consistently for the quarter ended June 30, 2020. Net interest income and noninterest income for the six months ended June 30, 2020 increased to $21.0 million and $2.7 million, respectively. Net interest income and noninterest income for the six months ended June 30, 2020 increased 9.3% and 20.5%, respectively, over the same period in 2019. 

Total assets were $1.5 billion and net loans were $1.3 billion as of June 30, 2020, which included $171.7 million in loans related to the Payment Protection Program ("PPP"). Asset quality remained good with non-performing assets to total assets at 0.16% as of June 30, 2020.  Non-interest-bearing deposits were $388.1 million, representing 28.9% of total deposits as of June 30, 2020.  Total deposits as of June 30, 2020 were $1.3 billion.  The Company continues to build its core deposit base (currently at 69% of total deposits) and reduce its overall cost of deposits.  The Company's asset quality remains strong.  Capital levels for the Company remain strong. 

COVID-19
In order to maintain the Company's strong asset quality, the Board and management initiated two payment deferral programs to support borrowers needs during the pandemic:

Phase 1 – Borrowers could opt to defer up to two months of principal and interest payments, and
Phase 2 – Commercial lenders would work with borrowers individually to design and implement a custom solution to achieve a positive outcome for the borrower.

An overwhelming number of borrowers, 77.5% (by dollar amount), did not indicate a need for any support from either phase to continue performing on their loan obligations.   

Phase 1 - Initiated March 24th.  Important to note that at this point little was known about the state of the pandemic with no predictions on its duration or severity.  A total of 195 borrowers participated in this phase, representing 22.5% of the dollar amount of loans outstanding.  This phase is essentially complete.

Phase 1 was evenly distributed across the portfolio, save for the hotel loan portfolio.  The Company has 15 operating hotels in its portfolio totaling $92.4 million.  The hospitality industry was significantly impacted by the pandemic and 14 hotels that we financed requested to participate in Phase 1.  The Table below shows the distribution of participants across all portfolios for Phase 1. 

Phase 1 of Loan Deferment Program

Loan Type

Total Deferred
(000's)

Percentage of
Total Loans

Commercial Real Estate

$165,920

13.0%

Owner-Occupied Commercial Real Estate

55,232

4.3%

C&I

20,152

1.6%

Other Const & Land

15,465

1.2%

Closed-end 1st Lien

14,215

1.1%

1-4 Fam Construction

10,880

0.9%

Multifamily

2,610

0.2%

Closed-end Jr Lien

1,075

0.1%

Revolving Secured by 1-4 Fam

1,050

0.1%

Total

$286,599

22.5%

Paycheck Protection Program – Initiated April 3, 2020.  During Phase 1, the commercial lending and credit teams were also fully engaged implementing the Paycheck Protection Program (PPP) to provide additional liquidity assistance to our borrowers.  The Team processed 1,071 PPP loans totaling nearly $172 million in short order.  Underwriting standards were focused on providing precisely the amount that would qualify for forgiveness by the federal government.  Approximately 44% of borrowers participating in Phase 1 program also participated in the PPP. 

Phase 2 – Initiated May 4, 2020.  The Board and management aligned the maximum deferment for Phase 2 with the Federal Reserve Board'sMain Street Lending Program and set the maximum deferment period at 12 months.   The Board and management also established several restrictive covenants for borrowers participating in Phase 2. 

The objective was for each borrower to attain a greater than 90% probability of a positive outcome.  The lending teams worked with their borrowers to determine what amount and term of deferment, if any, would be reasonable to achieve that objective.

An estimated 42 borrowers representing 7.4% of total loans outstanding plan to participate in Phase 2.  While still a concentration, only 60% of the hotels requested additional payment deferrals for Phase 2.  Refer to the table below recapping planned participation in Phase 2.

Phase 2 Estimated Loan Deferments


Deferred Amount by Month (000's)



Loan Type

1

2

3

4

5

6

Total
Deferred

Number of
Borrowers

Other Const & Land



$6,732


$164

$9,665

$16,562

4

Closed-end 1st Lien


943

2,165




3,109

2

Multifamily



1,564




1,564

2

Owner-Occupied Com'l CRE

1,982

1,221

3,665


2,844


9,713

12

Commercial Real Estate


8,092

3,496

7,029


41,875

60,491

12

 - Hotels


8,092


7,029


38,350


9

 - Office



155





1

 - Retail-Commercial






3,525


1

 - Shopping Center



3,341





1

Commercial & Industrial

202

128

1,367

591

245


2,533

9

Other Consumer


64





64

1

Total

$2,184

$10,448

$18,990

$7,619

$3,253

$51,540

$94,035

42

The general qualitative factor for the COVID-19 provision for the quarter ended June 30, 2020 was $2 million for the commercial portfolio.  In a separate pooled loan analysis, the Company determined that a $762,000 provision should be included for the indirect consumer automobile portfolio. 

The Company had one Commercial & Industrial (C&I) borrower that was immediately and fully impacted by the pandemic. Good collateral became uncollectible and new sales ceased to exist.  The Company charged-off the $1.76 million balance of the loan during the quarter.  In addition to address the ongoing impact of the COVID-19 pandemic, the Company added a general qualitative factor to the allowance for loan losses calculation during the second quarter of 2020, resulting in additional provision of $2.76 million for the quarter. The two provisions amount to $4.5 million of the total provision for the quarter. The remaining $1.1 million provision was made to support continued loan growth and shifts in other qualitative factors.

The balance of the ALLL after provisions and charge-offs for June 30, 2020 represents 1.25% of total loans (net of PPP loans), and 1.08% of total loans.

QUOTES: "The Company continues to perform well despite issues arising from the pandemic," said Jeff W. Dick, Chairman & CEO of MainStreet Bancshares Inc., and MainStreet Bank.  "The Board and management took a very conservative approach to assessing the loan portfolio based upon current and anticipated conditions.  We will continue to work with all of our customers in pursuit of a positive outcome throughout the course of this pandemic and beyond."

ABOUT MAINSTREET BANK:  MainStreet operates seven branches in Herndon, Fairfax, Fairfax City, 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 well over 1,000 businesses in the metropolitan area.

MainStreet Bank has a full complement of payment system services for third party payment providers with nationally known market leaders on-staff ready to help payment providers create a solution perfect for their needs.

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 its customer 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.

1Use of Certain Non-GAAP Financial Measures. The accounting and reporting policies of the Company conform to GAAP in the United States and prevailing practices in the banking industry. However, certain non-GAAP measures are used by management to supplement the evaluation of the Company's performance. This included adjusted net income.

Management believes that the use of non-GAAP measures provides meaningful information about operating performance by enhancing comparability with other financial periods, other financial institutions, and between different sources of income. The non-GAAP measures used by management enhance comparability by excluding the effects of items that do not reflect ongoing operating performance, including non-recurring gains or charges. These non-GAAP financial measures should not be considered an alternative to GAAP-basis financial statements, and other bank holding companies may define or calculate these or similar measures differently. A reconciliation of the non-GAAP financial measures used by the Company to evaluate and measure the Company's performance to the most directly comparable GAAP financial measures is presented below.

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)




June 30, 2020



March 31,
2020



December 31,
2019



September 30,
2019



June 30, 2019


ASSETS





















Cash and cash equivalents





















Cash and due from banks


$

55,273



$

62,098



$

53,376



$

52,580



$

44,976


Federal funds sold



21,081




10,677




11,468




19,432




19,835


Total cash and cash equivalents



76,354




72,775




64,844




72,012




64,811


Investment securities available for sale, at fair value



91,823




102,191




92,791




88,198




60,079


Investment securities held to maturity, at carrying value



23,843




23,878




23,914




24,410




24,946


Restricted equity securities, at cost



5,041




5,041




6,157




4,882




5,307


Loans, net of allowance for loan losses of $13,731, $9,898, $9,584,

$9,370, and $9,185, respectively



1,259,012




1,059,628




1,030,425




992,609




983,574


Premises and equipment, net



14,416




14,666




14,153




14,109




14,208


Other real estate owned, net



1,175




1,207




1,207




1,207




1,207


Accrued interest and other receivables



7,458




4,809




5,420




5,373




5,681


Bank owned life insurance



24,959




24,761




24,562




19,381




14,275


Other assets



24,786




20,786




13,885




11,414




9,945


Total Assets


$

1,528,867



$

1,329,742



$

1,277,358



$

1,233,595



$

1,184,033


LIABILITIES AND STOCKHOLDERS' EQUITY





















Liabilities:





















Non-interest bearing deposits


$

388,104



$

240,979



$

252,707



$

218,087



$

201,405


Interest bearing DDA deposits



18,266




16,846




53,707




54,438




65,117


Savings and NOW deposits



65,876




60,454




63,015




63,746




61,945


Money market deposits



332,246




265,443




141,337




125,716




115,641


Time deposits



537,840




559,489




560,857




601,896




566,292


Total deposits



1,342,332




1,143,211




1,071,623




1,063,883




1,010,400


Federal Home Loan Bank advances and other borrowings



10,000




10,000




40,000




10,000




20,000


Subordinated debt



14,819




14,812




14,805




14,798




14,791


Other liabilities



21,546




21,424




13,896




11,697




9,806


Total Liabilities



1,388,697




1,189,447




1,140,324




1,100,378




1,054,997


Stockholders' Equity:





















Common stock, par value $4 per share, authorized 10,000,000

   shares; issued and outstanding, 8,263,941 shares at June 30, 2020

   including 155,742 unvested shares, 8,260,231 shares at March 31,    

   2020 including 155,742 unvested shares, 8,260,259 shares at

   December 31, 2019 including 160,961 unvested shares,

   8,260,259 shares at September 30, 2019 including 160,961

   unvested shares, 8,250,259 at June 30, 2019 including

   153,586 unvested shares.



32,433




32,418




32,397




32,397




32,387


Capital surplus



74,850




74,482




75,117




74,860




74,609


Retained earnings



31,933




32,567




29,097




25,535




21,826


Accumulated other comprehensive income



954




828




423




425




214


Total Stockholders' Equity



140,170




140,295




137,034




133,217




129,036


Total Liabilities and Stockholders' Equity


$

1,528,867



$

1,329,742



$

1,277,358



$

1,233,595



$

1,184,033


 

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME INFORMATION

(In thousands, except share and per share data)




Year-to-Date



Three Months Ended




June 30,
2020



June 30,
2019



June 30,
2020



March 31,
2020



December 31,
2019



September 30,
2019



June 30,
2019


INTEREST INCOME:





























Interest and fees on loans


$

28,619



$

26,793



$

14,399



$

14,220



$

14,223



$

14,192



$

13,877


Interest on investment securities



997




1,171




496




501




534




497




615


Interest on federal funds sold



404




720




9




395




271




412




375


Total interest income



30,020




28,684




14,904




15,116




15,028




15,101




14,867


INTEREST EXPENSE:





























Interest on interest bearing DDA deposits



153




528




36




117




195




275




283


Interest on savings and NOW deposits



114




147




50




64




71




71




74


Interest on money market deposits



1,252




1,350




474




778




489




539




587


Interest on time deposits



6,900




6,566




3,333




3,566




3,730




3,900




3,635


Interest on Federal Home Loan Bank

   advances and other borrowings



94




381




44




50




92




76




162


Interest on subordinated debt



482




479




241




241




244




244




241


Total interest expense



8,995




9,451




4,178




4,816




4,821




5,105




4,982


Net interest income



21,025




19,233




10,726




10,300




10,207




9,996




9,885


Provision for loan losses



5,925




1,075




5,575




350




358




185




750


Net interest income after provision

   for loan losses



15,100




18,158




5,151




9,950




9,849




9,811




9,135


NON-INTEREST INCOME:





























Deposit account service charges



920




816




433




487




460




392




446


Bank owned life insurance income



397




211




198




199




181




106




106


Loan swap fee income



826




471




423




403




111




407




181


Net gain on available-for-sale securities






5
















5


Net gains on sale of loans






263













303




263


Other fee income



589




501




264




325




407




228




340


Total other income



2,732




2,267




1,318




1,414




1,158




1,436




1,341


NON-INTEREST EXPENSES:





























Salaries and employee benefits



8,696




7,707




4,263




4,433




4,179




3,890




3,847


Furniture and equipment expenses



954




820




500




454




457




451




435


Advertising and marketing



447




296




191




256




375




235




191


Occupancy expenses



578




430




311




267




221




214




217


Outside services



481




388




205




276




169




306




161


Administrative expenses



341




343




177




164




198




190




176


Other operating expenses



3,006




2,201




1,713




1,293




1,104




1,203




1,150


Total other expenses



14,503




12,185




7,360




7,143




6,703




6,489




6,177


INCOME (LOSS) BEFORE INCOME TAXES



3,329




8,240




(891)




4,221




4,304




4,758




4,299


Income tax expense (benefit)



494




1,562




(257)




751




742




1,049




868


NET INCOME (LOSS)


$

2,835



$

6,678



$

(634)



$

3,470



$

3,562



$

3,709



$

3,431


Net income (loss) per common share,

   basic and diluted


$

0.34



$

0.81



$

(0.08)



$

0.42



$

0.43



$

0.45



$

0.42


Weighted average number of shares,

   basic and diluted



8,275,344




8,246,562




8,263,370




8,287,317




8,260,259




8,251,672




8,250,210


 

UNAUDITED LOAN, DEPOSIT AND BORROWING DETAIL

(In thousands)




June 30, 2020



March 31, 2020



June 30, 2019



Percentage Change




$ Amount



% of

Total



$ Amount



% of

Total



$ Amount



% of

Total



Last

3 Mos



Last

12 Mos


LOANS:

































Construction and land development loans


$

284,843




22.2

%


$

286,756




26.7

%


$

203,873




20.5

%



-0.7

%



39.7

%

Residential real estate loans



169,924




13.3

%



149,173




13.9

%



158,406




15.9

%



13.9

%



7.3

%

Commercial real estate loans



497,279




38.8

%



449,786




42.0

%



425,862




42.8

%



10.6

%



16.8

%

Commercial industrial loans



268,290




21.0

%



118,258




11.0

%



117,905




11.9

%



126.9

%



127.5

%

Consumer loans



60,166




4.7

%



68,159




6.4

%



88,421




8.9

%



-11.7

%



-32.0

%

Total Gross Loans


$

1,280,502




100.0

%


$

1,072,132




100.0

%


$

994,467




100.0

%



19.4

%



28.8

%

Less: Allowance for loan losses



(13,731)








(9,898)








(9,185)














Net deferred loan fees



(7,759)








(2,606)








(1,708)














Net Loans


$

1,259,012







$

1,059,628







$

983,574














DEPOSITS:

































Non-interest bearing demand deposits


$

388,104




28.9

%


$

240,979




21.1

%


$

201,405




19.9

%



61.1

%



92.7

%

Interest-bearing demand deposits:

































Demand deposits



18,266




1.4

%



16,846




1.5

%



65,117




6.4

%



8.4

%



-71.9

%

Savings and NOW deposits



65,876




4.9

%



60,454




5.3

%



61,945




6.1

%



9.0

%



6.3

%

Money market accounts



332,246




24.8

%



265,443




23.2

%



115,641




11.4

%



25.2

%



187.3

%

Certificates of deposit $250,000 or more



213,051




15.9

%



213,409




18.7

%



222,292




22.0

%



-0.2

%



-4.2

%

Certificates of deposit less than $250,000



324,789




24.1

%



346,080




30.2

%



344,000




34.2

%



-6.2

%



-5.6

%

Total Deposits


$

1,342,332




100.0

%


$

1,143,211




100.0

%


$

1,010,400




100.0

%



17.4

%



32.9

%

BORROWINGS:

































Federal Home Loan Bank advances



10,000




40.3

%



10,000




40.3

%



20,000




57.5

%



0.0

%



-50.0

%

Subordinated debt



14,819




59.7

%



14,812




59.7

%



14,791




42.5

%



0.0

%



0.2

%

Total Borrowings


$

24,819




100.0

%


$

24,812




100.0

%


$

34,791




100.0

%



0.0

%



-28.7

%

Total Deposits and Borrowings


$

1,367,151







$

1,168,023







$

1,045,191








17.0

%



30.8

%


































Core customer funding sources (1)


$

939,474




68.7

%


$

785,661




67.2

%


$

605,484




57.9

%



19.6

%



55.2

%

Brokered and listing service sources (2)



402,858




29.5

%



357,550




30.6

%



404,916




38.7

%



12.7

%



-0.5

%

Federal Home Loan Bank advances



10,000




0.7

%



10,000




0.9

%



20,000




1.9

%



0.0

%



-50.0

%

Subordinated debt (3)



14,819




1.1

%



14,812




1.3

%



14,791




1.4

%



0.0

%



0.2

%

Total Funding Sources


$

1,367,151




100.0

%


$

1,168,023




100.0

%


$

1,045,191




100.0

%



17.0

%



30.8

%


(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 June 30, 2020



For the three months ended June 30, 2019




Average

Balance



Interest

Income/

Expense



Average

Yields/ Rate

(annualized)



Average

Balance



Interest

Income/

Expense



Average

Yields/ Rate

(annualized)


ASSETS:

























Interest earning assets:

























Loans (1)


$

1,213,250



$

14,399




4.75

%


$

978,282



$

13,877




5.67

%

Investment securities



73,186




496




2.71

%



73,218




615




3.36

%

Federal funds and interest-bearing deposits



126,164




9




0.03

%



73,494




375




2.04

%

Total interest earning assets


$

1,412,600



$

14,904




4.22

%


$

1,124,994



$

14,867




5.29

%

Other assets



69,741












40,842










Total assets


$

1,482,341











$

1,165,836










Liabilities and Stockholders' Equity:

























Interest-bearing liabilities:

























Interest-bearing demand deposits


$

17,507



$

36




0.82

%


$

57,299



$

283




1.98

%

Money market deposit accounts



303,118




474




0.63

%



123,110




587




1.91

%

Savings and NOW deposits



62,733




50




0.32

%



62,613




74




0.47

%

Time deposits



548,728




3,333




2.43

%



548,669




3,635




2.65

%

Total interest-bearing deposits


$

932,086



$

3,893




1.67

%


$

791,691



$

4,579




2.31

%

Federal funds and repos purchased



1

















Subordinated debt



14,816




241




6.51

%



14,788




241




6.52

%

FHLB borrowings



10,000




44




1.76

%



23,956




162




2.70

%

Total interest-bearing liabilities


$

956,903



$

4,178




1.75

%


$

830,435



$

4,982




2.40

%

Demand deposits and other liabilities



383,480












208,405










Total liabilities


$

1,340,383











$

1,038,840










Stockholders' Equity



141,958












126,996










Total Liabilities and Stockholders' Equity


$

1,482,341











$

1,165,836










Interest Rate Spread











2.47

%











2.89

%

Net Interest Income and Margin






$

10,726




3.04

%






$

9,885




3.51

%


(1)

Includes loans classified as non-accrual.

 

UNAUDITED AVERAGE BALANCE SHEETS, INTEREST AND RATES

(In thousands)




For the six months ended June 30, 2020



For the six months ended June 30, 2019




Average

Balance



Interest

Income/

Expense



Average

Yields/ Rate

(annualized)



Average

Balance



Interest

Income/

Expense



Average

Yields/ Rate

(annualized)


ASSETS:

























Interest earning assets:

























Loans (1)


$

1,135,995



$

28,619




5.04

%


$

957,457



$

26,793




5.60

%

Investment securities



73,512




997




2.71

%



70,897




1,171




3.30

%

Federal funds and interest-bearing deposits



131,239




404




0.62

%



69,242




720




2.08

%

Total interest earning assets


$

1,340,746



$

30,020




4.48

%


$

1,097,596



$

28,684




5.23

%

Other assets



64,550












38,827










Total assets


$

1,405,296











$

1,136,423










Liabilities and Stockholders' Equity:

























Interest-bearing liabilities:

























Interest-bearing demand deposits


$

25,532



$

153




1.20

%


$

57,013



$

528




1.85

%

Money market deposit accounts



266,638




1,252




0.94

%



133,410




1,350




2.02

%

Savings and NOW deposits



62,716




114




0.36

%



60,626




147




0.48

%

Time deposits



557,921




6,900




2.47

%



508,421




6,566




2.58

%

Total interest-bearing deposits


$

912,807



$

8,419




1.84

%


$

759,470



$

8,591




2.26

%

Federal funds and repos purchased



1







0.00

%



69




1




2.89

%

Subordinated debt



14,813




482




6.51

%



14,784




479




6.48

%

FHLB borrowings



10,165




94




1.85

%



29,006




380




2.62

%

Total interest-bearing liabilities


$

937,786



$

8,995




1.92

%


$

803,329



$

9,451




2.35

%

Demand deposits and other liabilities



326,949












207,925










Total liabilities


$

1,264,735











$

1,011,254










Stockholders' Equity



140,561












125,169










Total Liabilities and Stockholders' Equity


$

1,405,296











$

1,136,423










Interest Rate Spread











2.56

%











2.88

%

Net Interest Income and Margin






$

21,025




3.14

%






$

19,233




3.50

%


(1)

Includes loans classified as non-accrual.

 

UNAUDITED SUMMARY FINANCIAL DATA

(Dollars in thousands except per share data)




At or For the Three Months Ended


At or For the Six Months Ended




June 30,


June 30,




2020



2019


2020



2019


Per share Data and Shares Outstanding
















Earnings (losses) per share (basic and diluted)


$

(0.08)



$

0.42


$

0.34



$

0.81


Tangible book value per share


$

16.96



$

15.64


$

16.96



$

15.64


Weighted average common shares (basic and diluted)



8,263,370




8,250,210



8,275,344




8,246,562


Common shares outstanding at end of period



8,263,941




8,250,259



8,263,941




8,250,259


Performance Ratios
















Return on average assets (annualized)



(0.17)

%



1.18

%


0.40

%



1.18

%

Return on average equity (annualized)



(1.79)

%



10.81

%


4.04

%



10.67

%

Yield on earning assets (annualized)



4.22

%



5.29

%


4.48

%



5.23

%

Cost of interest bearing liabilities (annualized)



1.75

%



2.40

%


1.92

%



2.35

%

Net interest spread



2.47

%



2.89

%


2.56

%



2.88

%

Net interest margin (annualized)



3.04

%



3.51

%


3.14

%



3.50

%

Net interest margin less PPPL (annualized)



3.17

%





3.21

%




Noninterest income as a percentage of average assets (annualized)



0.36

%



0.46

%


0.39

%



0.40

%

Noninterest expense to average assets (annualized)



1.99

%



2.12

%


2.06

%



2.14

%

Efficiency ratio



61.11

%



55.02

%


61.04

%



56.67

%

Asset Quality
















Loans 30-89 days past due to total gross loans



0.01

%



0.03

%


0.01

%



0.03

%

Loans 90 days past due to total gross loans



0.00

%



0.00

%


0.00

%



0.00

%

Non-accrual loans to total gross loans



0.10

%



0.00

%


0.10

%



0.00

%

Other real estate owned


$

1,175



$

1,207


$

1,175



$

1,207


Non-performing assets


$

2,480



$

1,242


$

2,480



$

1,242


Non-performing assets to total assets



0.16

%



0.10

%


0.16

%



0.10

%

Allowance for loan losses to total gross loans



1.07

%



0.92

%


1.07

%



0.92

%

Allowance for loan losses to total gross loans less PPPL



1.24

%





1.24

%




Allowance for loan losses to non-performing assets



5.54




7.40



5.54




7.40


Net loan charge-offs (recoveries)


$

1,742



$

754


$

1,778



$

721


Net charge-offs to average loans (annualized)



0.57

%



0.31

%


0.31

%



0.15

%

Troubled debt restructurings (total)
















Performing in accordance with modified terms


$



$

1,494


$



$

1,494


Not performing in accordance with modified terms


$



$


$



$


Regulatory Capital Ratios (Bank only) (1)
















Total risk-based capital ratio



13.26

%



13.41

%


13.26

%



13.41

%

Tier 1 risk-based capital ratio



12.16

%



12.59

%


12.16

%



12.59

%

Leverage ratio



10.23

%



12.07

%


10.23

%



12.07

%

Common equity tier 1 ratio



12.16

%



12.59

%


12.16

%



12.59

%

Other information
















Closing stock price


$

13.20



$

22.79


$

13.20



$

22.79


Tangible equity / tangible assets



9.17

%



10.89

%


9.17

%



10.89

%

Tangible equity / tangible assets less PPPL loans



10.33

%





10.33

%




Average tangible equity / average tangible assets



9.58

%



10.89

%


10.00

%



11.01

%

Number of full time equivalent employees



121




120



121




120


# Full service branch offices



7




6



7




6



(1)

Regulatory capital ratios as of June 30, 2020 are preliminary.

 

Reconciliation of Certain Non-GAAP Financial Measures

(In thousands)




For the three months ended June 30,



For the six months ended June 30,





2020




2019




2020




2019


Adjusted Net Income

















Net income (loss), as reported


$

(634)



$

3,431



$

2,835



$

6,678


Tax expense (benefit)



(257)




868




494




1,562


Provision for loan losses



5,575




750




5,925




1,075


Adjusted net income


$

4,684



$

5,049



$

9,254



$

9,315


 

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/mainstreet-bancshares-inc-reports-pandemics-impact-on-second-quarter-301101883.html

SOURCE MainStreet Bancshares, Inc.

Copyright 2020, © S&P Global Market Intelligence  Terms of Use