Press Release

MainStreet Bancshares, Inc. Reports Record Strong and Steady Third Quarter 2021 Earnings

Company Release - 10/19/2021

FAIRFAX, Va., Oct. 19, 2021 /PRNewswire/ -- MainStreet Bancshares, Inc. (Nasdaq: MNSB & MNSBP), the holding company for MainStreet Bank, reported net income of $4.8 million for the third quarter of 2021.  Year-to-date net income through September 30th is $17.4 million, and year-to-date results represent:

  • 13.14% return on average equity
  • 1.37% return on average assets
  • $2.09 earnings per share of common stock (basic and diluted)
  • $20.64 per common share book value
The Company is well positioned for a stable or rising interest rate environment.

Year-to-date net interest income through September 30th of $39.7 million is up 20.5% over the same period last year.    

The Company's cost of funds for the quarter-ended September 30, 2021, is 1.03%, down 32% from the same period a year earlier. The Company is on-track to continue reducing funding costs.  The Company's efficiency ratio is 54.7% for the nine-months ended September 30, 2021.

Total assets remain steady through the year at $1.7 billion.  Net loans of $1.2 billion include approximately $264 million of new commercial loans and advances and $86 million of new Paycheck Protection Program (PPP) loans.  The table below provides a reconcilement of gross loans, inclusive and net of Paycheck Protection Program (PPP) loans.  Asset quality continues to be strong with non-performing assets representing a negligible seven hundredths of a percent of total assets on September 30, 2021. 

Reconcilement of Gross Loans through September 30, 2021


Gross Loans

(millions)

Gross Loans

Net of PPP

(millions)



% Gross
Loans


% Gross
Loans

Gross loans 12/31/2020

$1,300


$1,164


+ New loans & advances

$351

27%

$264

23%

- Repayments

$364

-28%

$229

-20%

- Sold loans*

$30


$30


Gross loans 9/30/2021

$1,257


$1,169


- ALLL 9/30/2021

$11


$11


+ PPP loans

**


$88


Net loans 9/30/2021

$1,246


$1,246



*Sold loans represent the amount of loans sold for concentration risk management purposes.  The loans that were sold yielded a net premium on sale.

** Already included in Gross Loans.

Non-interest-bearing deposits represent 34% of the $1.4 billion in total deposits.  Seventy-six percent of total deposits are core deposits. 

"The Company is extremely well positioned for a stable or rising interest rate environment," said Jeff W. Dick, Chairman & CEO of MainStreet Bancshares, Inc. and MainStreet Bank.  "Inflation and market indicators are certainly pointing toward an interest rate adjustment, and we are well prepared for it."

As of September 30th, the Company has $88 million remaining in PPP loans.  The origination fees yet to be realized on the remaining balance approximate $3.8 million.  Total PPP activity is recapped in the table below.


Round 1

2020

Round 2

2021


(millions)

Originated

$192

$86

Paydowns during 2020

$41

-

Paydowns during 2021

$132

$17

Remaining balance 9/30/2021

$19

$69

All loans that were provided with deferrals of interest or principal during the pandemic have returned to their original payment structure prior to September 30, 2021. 

"The federal government's implementation of PPP was vital to our customer's financial health during the pandemic, and we are proud to have distributed $279 million of that program to many of our existing and new customers.  I'm excited to report that 68% of PPP proceeds has already been forgiven," said Abdul Hersiburane, President of MainStreet Bank.  "With the high volume of PPP activity, it has been a challenge to achieve our normal level of growth during 2021, but we are optimistic for a strong 4th quarter."

The Company's hotel portfolio is performing well, reporting average August occupancy at 67.8% and average revenue per available room at $74.60.  The Company continues to retain a special 40 basis point COVID 19 Allowance for Loan and Lease Losses (ALLL) provision against the remaining balance of its hotel loan portfolio. 

The Company will be announcing its AvenuTM Banking as a Service (BaaS) solution for fintechs on October 25th, Dick added.  "We are designing AvenuTM to be a transformational solution for fintechs.  We look forward to sharing details about how we are serving a market segment that needs robust and fully compliant BaaS solutions."

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, as it can offer business customers the ability to Put Our Bank in Your Office®. With robust and easy-to-use online business banking technology, MainStreet has "put our bank" in thousands of businesses in the metropolitan area.

MainStreet Bank has a robust line of business and professional lending products, including government contracting lines of credit, commercial lines and term loans, residential and commercial construction, and commercial real estate.  MainStreet also works with the SBA to offer 7A and 504 lending solutions.  From sophisticated cash management to enhanced mobile banking and instant-issue Debit Cards, MainStreet Bank is always looking for ways to improve our customer's experience.  

MainStreet Bank was the first community bank in the Washington, DC metropolitan area to offer a full online business banking solution.  MainStreet Bank was also the first bank headquartered in the Commonwealth of Virginia to offer CDARS – a solution that provides multi-million-dollar FDIC insurance.  Further information on the Bank can be obtained by visiting its website at mstreetbank.com. This release contains forward-looking statements, including our expectations with respect to future events that are subject to various risks and uncertainties.  The statements contained in this release that are not historical facts are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Words such as "may," "will," "could," "should," "expect," "plan," "project," "intend," "anticipate," "believe," "estimate," "predict," "potential," "pursuant," "target," "continue," and similar expressions are intended to identify such forward-looking statements. Factors that could cause actual results to differ materially from management's projections, forecasts, estimates and expectations include: fluctuation in market rates of interest and loan and deposit pricing, adverse changes in the overall national economy as well as adverse economic conditions in our specific market areas, future impacts of the novel coronavirus (COVID-19) outbreak, maintenance and development of well-established and valued client relationships and referral source relationships, and acquisition or loss of key production personnel.

We caution readers that the list of factors above is not exclusive. The forward-looking statements are made as of the date of this release, and we may not undertake steps to update the forward-looking statements to reflect the impact of any circumstances or events that arise after the date the forward-looking statements are made.  In addition, our past results of operations are not necessarily indicative of future performance.

Contact: Jeff W. Dick, Chairman & CEO
(703) 481-4567

 

UNAUDITED CONSOLIDATED BALANCE SHEET INFORMATION

(In thousands, except share data)




September 30,
2021



June 30,
2021



March 31,
2021



December 31,
2020



September 30,

2020


ASSETS





















Cash and cash equivalents





















Cash and due from banks


$

67,992



$

120,121



$

118,399



$

75,935



$

102,480


Federal funds sold



65,725




56,164




51,598




31,593




25,074


Total cash and cash equivalents



133,717




176,285




169,997




107,528




127,554


Investment securities available for sale, at fair value



171,603




165,791




180,028




147,414




118,844


Investment securities held to maturity, at carrying value



26,081




26,136




26,427




22,520




23,114


Restricted equity securities, at cost



5,039




5,039




4,664




4,616




4,616


Loans held for sale












57,006





Loans, net of allowance for loan losses of $11,428, $11,133, $13,215,

$12,877, and $14,346, respectively



1,246,331




1,256,436




1,299,169




1,230,379




1,279,899


Premises and equipment, net



14,795




13,929




13,975




14,289




14,474


Other real estate owned, net



1,158




1,158




1,180




1,180




1,580


Accrued interest and other receivables



4,718




8,752




9,349




9,604




8,579


Computer software, net of amortization



1,165














Bank owned life insurance



35,987




35,736




25,518




25,341




25,157


Other assets



16,605




18,433




12,722




23,288




26,371


Total Assets


$

1,657,199



$

1,707,695



$

1,743,029



$

1,643,165



$

1,630,188


LIABILITIES AND STOCKHOLDERS' EQUITY





















Liabilities:





















Non-interest bearing deposits


$

475,157



$

486,001



$

492,463



$

370,497



$

416,648


Interest bearing DDA deposits



63,622




68,028




69,180




70,307




72,807


Savings and NOW deposits



79,556




72,353




72,259




74,099




69,015


Money market deposits



310,776




310,303




342,468




426,600




348,146


Time deposits



485,255




528,247




561,772




496,743




510,429


Total deposits



1,414,366




1,464,932




1,538,142




1,438,246




1,417,045


Subordinated debt



40,635




40,576




14,841




14,834




14,827


Other liabilities



18,169




22,559




17,868




22,420




25,055


Total Liabilities



1,473,170




1,528,067




1,570,851




1,475,500




1,456,927


Stockholders' Equity:





















Preferred stock



27,263




27,263




27,263




27,263




27,527


Common stock



29,462




29,446




29,437




29,130




32,460


Capital surplus



67,152




66,667




66,233




66,116




75,217


Retained earnings



59,920




55,676




49,090




44,179




37,105


Accumulated other comprehensive income



232




576




155




977




952


Total Stockholders' Equity



184,029




179,628




172,178




167,665




173,261


Total Liabilities and Stockholders' Equity


$

1,657,199



$

1,707,695



$

1,743,029



$

1,643,165



$

1,630,188


 

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME INFORMATION

(In thousands, except share and per share data)




Year-to-Date



Three Months Ended




September 30,
2021



September 30,
2020



September 30,
2021



June 30,
2021



March 31,
2021



December 31,
2020



September 30,
2020


INTEREST INCOME:





























Interest and fees on loans


$

46,211



$

43,702



$

15,162



$

15,257



$

15,792



$

15,933



$

15,083


Interest on investment securities



1,712




1,488




585




597




530




519




491


Interest on federal funds sold



73




416




38




20




15




15




12


Total interest income



47,996




45,606




15,785




15,874




16,337




16,467




15,586


INTEREST EXPENSE:





























Interest on interest bearing DDA deposits



170




209




60




55




55




108




56


Interest on savings and NOW deposits



127




169




38




47




42




52




55


Interest on money market deposits



645




1,742




148




220




277




418




490


Interest on time deposits



6,039




9,740




1,795




1,994




2,250




2,583




2,841


Interest on Federal Home Loan Bank

   advances and other borrowings






107
















13


Interest on subordinated debt



1,346




727




541




567




238




240




245


Total interest expense



8,327




12,694




2,582




2,883




2,862




3,401




3,700


Net interest income



39,669




32,912




13,203




12,991




13,475




13,066




11,886


Provision for (recovery of) loan losses



(1,470)




6,560




290




(2,080)




320




(2,950)




635


Net interest income after provision

   for (recovery of) loan losses



41,139




26,352




12,913




15,071




13,155




16,016




11,251


NON-INTEREST INCOME:





























Deposit account service charges



1,802




1,407




642




621




539




509




487


Bank owned life insurance income



647




595




252




218




177




183




199


Loan swap fee income






2,677













833




1,851


Net gain on held-to-maturity securities



3













3








Net gain (loss) on sale of loans



434




33




(40)




130




344







33


Other fee income



1,601




878




632




586




383




378




288


Total other income



4,487




5,590




1,486




1,555




1,446




1,903




2,858


NON-INTEREST EXPENSES:





























Salaries and employee benefits



14,276




13,191




4,847




4,663




4,767




4,746




4,495


Furniture and equipment expenses



1,743




1,528




716




500




526




601




574


Advertising and marketing



1,115




713




438




402




275




290




266


Occupancy expenses



1,092




910




399




387




306




360




332


Outside services



908




696




292




280




336




263




215


Administrative expenses



493




508




202




141




150




166




167


Other operating expenses



4,517




4,595




1,567




1,500




1,449




1,732




1,589


Total other expenses



24,144




22,141




8,461




7,873




7,809




8,158




7,638


Income before income tax expense



21,482




9,801




5,938




8,753




6,792




9,761




6,471


Income tax expense



4,124




1,793




1,155




1,627




1,342




2,051




1,299


Net Income



17,358




8,008




4,783




7,126




5,450




7,710




5,172


Preferred stock dividends



1,617







539




539




539




635





Net income available to common shareholders


$

15,741



$

8,008



$

4,244



$

6,587



$

4,911



$

7,075



$

5,172


Net income per common share,

   basic and diluted


$

2.09



$

0.97



$

0.56



$

0.87



$

0.65



$

0.92



$

0.63


Weighted average number of common shares,

   basic and diluted



7,547,254




8,274,419




7,571,214




7,546,452




7,523,547




7,700,470




8,272,570


 

UNAUDITED LOAN, DEPOSIT AND BORROWING DETAIL

(In thousands)




September 30, 2021



June 30, 2021



September 30, 2020



Percentage Change




$ Amount



% of

Total



$ Amount



% of

Total



$ Amount



% of

Total



Last

3 Mos



Last

12 Mos


LOANS:

































Construction and land development loans


$

327,004




25.9

%


$

328,480




25.8

%


$

325,516




25.0

%



-0.4

%



0.5

%

Residential real estate loans



223,029




17.6

%



190,426




14.9

%



157,518




12.1

%



17.1

%



41.6

%

Commercial real estate loans



494,766




39.1

%



503,514




39.5

%



505,201




38.8

%



-1.7

%



-2.1

%

Commercial industrial loans - Other



102,747




8.1

%



93,837




7.4

%



88,884




6.8

%



9.5

%



15.6

%

Commercial industrial loans - PPP Loans



88,534




7.0

%



124,578




9.8

%



173,075




13.3

%



-28.9

%



-48.8

%

Consumer loans



27,740




2.3

%



33,643




2.6

%



51,505




4.0

%



-17.5

%



-46.1

%

Total Gross Loans


$

1,263,820




100.0

%


$

1,274,478




100.0

%


$

1,301,699




100.0

%



-0.8

%



-2.9

%

Less: Allowance for loan losses



(11,428)








(11,133)








(14,346)














Net deferred loan fees



(6,061)








(6,909)








(7,454)














Net Loans


$

1,246,331







$

1,256,436







$

1,279,899














DEPOSITS:

































Non-interest bearing demand deposits


$

475,157




33.6

%


$

486,001




33.2

%


$

416,648




29.4

%



-2.2

%



14.0

%

Interest-bearing demand deposits:

































Demand deposits



63,622




4.5

%



68,028




4.6

%



72,807




5.1

%



-6.5

%



-12.6

%

Savings and NOW deposits



79,556




5.6

%



72,353




4.9

%



69,015




4.9

%



10.0

%



15.3

%

Money market accounts



310,776




22.0

%



310,303




21.2

%



348,146




24.6

%



0.2

%



-10.7

%

Certificates of deposit $250,000 or more



295,454




20.9

%



303,769




20.7

%



211,800




14.9

%



-2.7

%



39.5

%

Certificates of deposit less than $250,000



189,801




13.4

%



224,478




15.4

%



298,629




21.1

%



-15.4

%



-36.4

%

Total Deposits


$

1,414,366




100.0

%


$

1,464,932




100.0

%


$

1,417,045




100.0

%



-3.5

%



-0.2

%

BORROWINGS:

































Subordinated debt



40,635




100.0

%



40,576




100.0

%



14,827




100.0

%



0.1

%



174.1

%

Total Borrowings


$

40,635




100.0

%


$

40,576




100.0

%


$

14,827




100.0

%



0.1

%



174.1

%

Total Deposits and Borrowings


$

1,455,001







$

1,505,508







$

1,431,872








-3.4

%



1.6

%


































Core customer funding sources (1)


$

1,097,948




75.5

%


$

1,118,795




74.3

%


$

1,066,236




74.5

%



-1.9

%



3.0

%

Brokered and listing service sources (2)



316,418




21.7

%



346,137




23.0

%



350,809




24.5

%



-8.6

%



-9.8

%

Subordinated debt (3)



40,635




2.8

%



40,576




2.7

%



14,827




1.0

%



0.1

%



174.1

%

Total Funding Sources


$

1,455,001




100.0

%


$

1,505,508




100.0

%


$

1,431,872




100.0

%



-3.4

%



1.6

%


(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, 2021



For the three months ended September 30, 2020




Average

Balance



Interest

Income/

Expense



Average

Yields/ Rate

(annualized)



Average

Balance



Interest

Income/

Expense



Average

Yields/ Rate

(annualized)


ASSETS:

























Interest earning assets:

























Loans (1)(2)(3)


$

1,258,485



$

15,162




4.78

%


$

1,292,566



$

15,083




4.63

%

Investment securities



102,893




585




2.26

%



73,486




491




2.65

%

Federal funds and interest-bearing deposits



234,363




38




0.06

%



108,666




12




0.04

%

Total interest earning assets


$

1,595,741



$

15,785




3.92

%


$

1,474,718



$

15,586




4.19

%

Other assets



88,521












65,665










Total assets


$

1,684,262











$

1,540,383










Liabilities and Stockholders' Equity:

























Interest-bearing liabilities:

























Interest-bearing demand deposits


$

64,966



$

60




0.37

%


$

26,469



$

56




0.84

%

Money market deposit accounts



302,848




148




0.19

%



332,750




490




0.58

%

Savings and NOW deposits



75,968




38




0.20

%



62,066




55




0.35

%

Time deposits



507,254




1,795




1.40

%



522,995




2,841




2.16

%

Total interest-bearing deposits


$

951,036



$

2,041




0.85

%


$

944,280



$

3,442




1.45

%

Federal funds and repos purchased



2

















Subordinated debt



40,609




541




5.29

%



14,823




245




6.56

%

FHLB borrowings












4,511




13




1.14

%

Total interest-bearing liabilities


$

991,647



$

2,582




1.03

%


$

963,614



$

3,700




1.52

%

Demand deposits and other liabilities



510,008












428,726










Total liabilities


$

1,501,655











$

1,392,340










Stockholders' Equity



182,607












148,043










Total Liabilities and Stockholders' Equity


$

1,684,262











$

1,540,383










Interest Rate Spread











2.89

%











2.67

%

Net Interest Income






$

13,203











$

11,886






Net Interest Margin











3.28

%











3.20

%

Net Interest Margin, excluding PPP loans(4)











3.14

%











3.29

%


(1)

Includes loans classified as non-accrual

(2)

Includes average PPP balances of $105.2 million, related interest income of approximately $263,000, and $1.1 million in PPP fees recognized for the three months ended September 30, 2021

(3)

Total loan interest income includes amortization of deferred loan fees, net of deferred loan costs

(4)

Refer to Appendix for reconciliation of non-GAAP measures

 

UNAUDITED AVERAGE BALANCE SHEETS, INTEREST AND RATES

(In thousands)




For the nine months ended September 30, 2021



For the nine months ended September 30, 2020




Average

Balance



Interest

Income/

Expense



Average

Yields/ Rate

(annualized)



Average

Balance



Interest

Income/

Expense



Average

Yields/ Rate

(annualized)


ASSETS:

























Interest earning assets:

























Loans (1)(2)(3)


$

1,293,359



$

46,211




4.78

%


$

1,188,565



$

43,702




4.92

%

Investment securities



94,575




1,712




2.42

%



73,504




1,488




2.71

%

Federal funds and interest-bearing deposits



224,521




73




0.04

%



123,217




416




0.45

%

Total interest earning assets


$

1,612,455



$

47,996




3.98

%


$

1,385,286



$

45,606




4.40

%

Other assets



76,758












65,368










Total assets


$

1,689,213











$

1,450,654










Liabilities and Stockholders' Equity:

























Interest-bearing liabilities:

























Interest-bearing demand deposits


$

67,345



$

170




0.34

%


$

25,847



$

209




1.08

%

Money market deposit accounts



345,662




645




0.25

%



288,836




1,742




0.81

%

Savings and NOW deposits



72,591




127




0.23

%



64,513




169




0.35

%

Time deposits



508,722




6,039




1.59

%



543,531




9,740




2.40

%

Total interest-bearing deposits


$

994,320



$

6,981




0.94

%


$

922,727



$

11,860




1.72

%

Federal funds and repos purchased



1

















Subordinated debt



31,815




1,346




5.66

%



14,816




727




6.56

%

FHLB borrowings












8,266




107




1.73

%

Total interest-bearing liabilities


$

1,026,136



$

8,327




1.08

%


$

945,809



$

12,694




1.79

%

Demand deposits and other liabilities



486,510












361,771










Total liabilities


$

1,512,646











$

1,307,580










Stockholders' Equity



176,567












143,074










Total Liabilities and Stockholders' Equity


$

1,689,213











$

1,450,654










Interest Rate Spread











2.90

%











2.61

%

Net Interest Income






$

39,669











$

32,912






Net Interest Margin











3.29

%











3.18

%

Net Interest Margin, excluding PPP loans(4)











3.15

%











3.22

%


(1)

Includes loans classified as non-accrual and loans held for sale

(2)

Includes average PPP balances of $140.2 million, related interest income of approximately $1.1 million, and $4.0 million in PPP fees recognized for the nine months ended September, 2021

(3)

Total loan interest income includes amortization of deferred loan fees, net of deferred loan costs

(4)

Refer to Appendix for reconciliation of non-GAAP measures

 

UNAUDITED SUMMARY FINANCIAL DATA

(Dollars in thousands except per share data)




At or For the Three Months Ended


At or For the Nine Months Ended




September 30,


September 30,




2021



2020


2021



2020


Per share Data and Shares Outstanding
















Earnings per common share (basic and diluted)


$

0.56



$

0.63


$

2.09



$

0.97


Book value per common share


$

20.64



$

17.61


$

20.64



$

17.61


Tangible book value per common share(2)


$

20.49



$

17.61


$

20.49



$

17.61


Weighted average common shares (basic and diluted)



7,571,214




8,272,570



7,547,254




8,274,419


Common shares outstanding at end of period



7,593,749




8,277,837



7,593,749




8,277,837


Performance Ratios
















Return on average assets (annualized)



1.13

%



1.33

%


1.37

%



0.74

%

Return on average assets, excluding impact of PPP loans (annualized)(2)



0.85

%



1.19

%


1.07

%



0.60

%

Return on average equity (annualized)



10.39

%



13.86

%


13.14

%



7.48

%

Return on average common equity (annualized)



10.84

%



14.29

%


14.09

%



7.56

%

Yield on earning assets (annualized)



3.92

%



4.19

%


3.98

%



4.40

%

Cost of interest bearing liabilities (annualized)



1.03

%



1.52

%


1.08

%



1.79

%

Net interest spread



2.89

%



2.67

%


2.90

%



2.61

%

Net interest margin (annualized)



3.28

%



3.20

%


3.29

%



3.18

%

Net interest margin, excluding PPP loans (annualized)(2)



3.14

%



3.29

%


3.15

%



3.22

%

Noninterest income as a percentage of average assets (annualized)



0.35

%



0.74

%


0.36

%



0.52

%

Noninterest expense to average assets (annualized)



1.99

%



1.97

%


1.91

%



2.04

%

Efficiency ratio(3)



57.60

%



51.80

%


54.68

%



57.50

%

Asset Quality
















Commercial real estate loans to total capital (4)



341.44

%



416.76

%


341.44

%



416.76

%

Construction loans to total capital (5)



150.42

%



190.10

%


150.42

%



190.10

%

Loans 30-89 days past due to total gross loans



0.00

%



0.08

%


0.00

%



0.08

%

Loans 90 days past due to total gross loans



0.00

%



0.08

%


0.00

%



0.08

%

Non-accrual loans to total gross loans



0.00

%



0.10

%


0.00

%



0.10

%

Other real estate owned


$

1,158



$

1,580


$

1,158



$

1,580


Non-performing assets


$

1,158



$

2,822


$

1,158



$

2,822


Non-performing assets to total assets



0.07

%



0.17

%


0.07

%



0.17

%

Non-performing assets to total assets, excluding PPP loans(2)



0.07

%



0.19

%


0.07

%



0.19

%

Allowance for loan losses to total gross loans



0.90

%



1.10

%


0.90

%



1.10

%

Allowance for loan losses to total loans, excluding PPP loans(2)



0.97

%



1.27

%


0.97

%



1.27

%

Allowance for loan losses to non-performing assets



9.87




5.08



9.87




5.08


Net loan charge-offs (recoveries)


$

(5)



$

20


$

(21)



$

1,798


Net charge-offs (recoveries) to average gross loans (annualized)



0.00

%



0.01

%


0.00

%



0.20

%

Net charge-offs (recoveries) to average gross loans, excluding PPP loans (annualized)(2)



0.00

%



0.01

%


0.00

%



0.16

%

Regulatory Capital Ratios (Bank only) (1)
















Total risk-based capital ratio



16.55

%



13.39

%


16.55

%



13.39

%

Tier 1 risk-based capital ratio



15.68

%



12.27

%


15.68

%



12.27

%

Leverage ratio



12.23

%



10.19

%


12.23

%



10.19

%

Common equity tier 1 ratio



15.68

%



12.27

%


15.68

%



12.27

%

Other information
















Closing stock price


$

23.99



$

12.24


$

23.99



$

12.24


Equity / assets



11.10

%



10.63

%


11.10

%



10.63

%

Equity / assets, excluding PPP loans(2)



11.73

%



11.89

%


11.73

%



11.89

%

Average equity / average assets



10.84

%



9.61

%


10.45

%



10.00

%

Average equity / average assets, less average PPP loans(2)



11.56

%



10.82

%


11.40

%



10.62

%

Number of full time equivalent employees



128




123



128




123


# Full service branch offices



6




7



6




7



(1)

Regulatory capital ratios as of September 30, 2021 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 non-owner occupied and construction loans as a percentage of Bank capital

(5)

Construction loans as a percentage of Bank capital

 

Reconciliation of Certain Non-GAAP Financial Measures

(Dollars In thousands)




For the three months ended
September 30,



For the nine months ended
September 30,





2021




2020




2021




2020


Paycheck Protection Program adjustment impact

















Loans held for investment (GAAP)


$

1,263,820



$

1,301,699



$

1,263,820



$

1,301,699


Less: PPP loans



88,534




173,075




88,534




173,075


Loans held for investment, excluding PPP (non-GAAP)


$

1,175,286



$

1,128,624



$

1,175,286



$

1,128,624



















Average loans held for investment (GAAP)


$

1,258,485



$

1,292,566



$

1,293,359



$

1,188,565


Less: Average PPP loans



105,153




172,659




140,210




102,891


Average loans held for investment, excluding PPP (non-GAAP)


$

1,153,332



$

1,119,907



$

1,153,149




1,085,674





For the three months ended
September 30,



For the nine months ended
September 30,





2021




2020




2021




2020


Net interest margin adjustment

















Net interest income (GAAP)


$

13,203



$

11,886



$

39,669



$

32,912


Less: PPP fees recognized



1,136




644




3,958




1,235


Less: PPP interest income earned



263




432




1,052




772


Net interest income, excluding PPP income (non-GAAP)



11,804




10,810




34,659




30,905



















Average interest earning assets (GAAP)



1,595,741




1,474,718




1,612,455




1,385,286


Less: average PPP loans



105,153




172,659




140,210




102,891


Average interest earning assets, excluding PPP (non-GAAP)



1,490,588




1,302,059




1,472,245




1,282,395



















Net interest margin (GAAP)



3.28

%



3.20

%



3.29

%



3.18

%

Net interest margin, excluding PPP (non-GAAP)



3.14

%



3.29

%



3.15

%



3.22

%




For the three months ended
September 30,



For the nine months ended
September 30,





2021




2020




2021




2020


Total asset adjustment

















Total assets (GAAP)


$

1,657,199



$

1,630,188



$

1,657,199



$

1,630,188


Less: PPP loans



88,534




173,075




88,534




173,075


Total assets, excluding PPP loans (non-GAAP)



1,568,665




1,457,113




1,568,665




1,457,113



















Total equity (GAAP)



184,029




173,261




184,029




173,261


Equity / assets, excluding PPP loans (non-GAAP)



11.73

%



11.89

%



11.73

%



11.89

%


















Average asset adjustment

















Average assets (GAAP)



1,684,262




1,540,383




1,689,213




1,450,654


Less: average PPP loans



105,153




172,659




140,210




102,891


Total average assets, excluding average PPP loans



1,579,109




1,367,724




1,549,003




1,347,763



















Total average equity (GAAP)



182,607




148,043




176,567




143,074


Average equity / average assets, excluding average PPP loans (non-GAAP)



11.56

%



10.82

%



11.40

%



10.62

%




For the three months ended
September 30,



For the nine months ended
September 30,





2021




2020




2021




2020


Return on Average Assets, adjusted

















Net income (GAAP)


$

4,783



$

5,172



$

17,358



$

8,008


Less: PPP fees recognized



1,136




644




3,958




1,235


Less: PPP interest income earned



263




432




1,052




772


Net income, excluding PPP income (non-GAAP)



3,384




4,096




12,348




6,001



















Average total assets



1,684,262




1,540,383




1,689,213




1,450,654


Less: average PPP loans



105,153




172,659




140,210




102,891


Average total assets, excluding PPP (non-GAAP)



1,579,109




1,367,724




1,549,003




1,347,763


Return on average assets, excluding PPP (non-GAAP)



0.85

%



1.19

%



1.07

%



0.60

%




For the three months ended
September 30,



For the nine months ended
September 30,





2021




2020




2021




2020


Nonperforming Assets to total assets, adjusted

















Total nonperforming assets (GAAP)


$

1,158



$

2,822



$

1,158



$

2,822



















Total assets (GAAP)



1,657,199




1,630,188




1,657,199




1,630,188


Less: PPP loans



88,534




173,075




88,534




173,075


Total assets, excluding PPP loans (non-GAAP)



1,568,665




1,457,113




1,568,665




1,457,113


Nonperforming assets to total assets, excluding PPP loans (non-GAAP)



0.07

%



0.19

%



0.07

%



0.19

%




For the three months ended
September 30,



For the nine months ended
September 30,





2021




2020




2021




2020


Allowance for loan losses, adjusted

















Allowance for loan losses (GAAP)


$

11,428



$

14,346



$

11,428



$

14,346



















Total gross loans (GAAP)



1,263,820




1,301,699




1,263,820




1,301,699


Less: PPP loans



88,534




173,075




88,534




173,075


Total gross loans, excluding PPP loans (non-GAAP)



1,175,286




1,128,624




1,175,286




1,128,624


Allowance for loan losses to total loans, excluding PPP (non-GAAP)



0.97

%



1.27

%



0.97

%



1.27

%




For the three months ended
September 30,



For the nine months ended
September 30,





2021




2020




2021




2020


Net charge-offs to average loans, adjusted

















Total net charge-offs (recoveries) (GAAP)


$

(5)




20



$

(21)



$

1,778



















Total average gross loans (GAAP)



1,258,485




1,292,566




1,293,359




1,188,565


Less: average PPP loans



105,153




172,659




140,210




102,891


Total average gross loans, excluding PPP loans (non-GAAP)



1,153,332




1,119,907




1,153,149




1,085,674


Net charge-offs (recoveries) to average gross loans, excluding PPP (annualized) (non-GAAP)



0.00

%



0.01

%



0.00

%



0.16

%




For the three months ended
September 30,



For the nine months ended
September 30,





2021




2020




2021




2020


Stockholders equity, adjusted

















Total common stockholders equity


$

156,766




145,734



$

156,766



$

145,734


Less: intangible assets



1,165







1,165





Tangible common stockholders equity



155,601




145,734




155,601




145,734



















Shares outstanding



7,593,749




8,277,837




7,593,749




8,277,837


Tangible book value per common share


$

20.49



$

17.61



$

20.49



$

17.61


 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/mainstreet-bancshares-inc-reports-record-strong-and-steady-third-quarter-2021-earnings-301403268.html

SOURCE MainStreet Bancshares, Inc.