false 0001693577 0001693577 2024-07-29 2024-07-29 0001693577 mnsb:CommonStockCustomMember 2024-07-29 2024-07-29 0001693577 mnsb:DepositarySharesCustomMember 2024-07-29 2024-07-29
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 

FORM 8-K
 

 
CURRENT REPORT
 
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported): Date: July 29, 2024
 

 
logo01.jpg
 
MainStreet Bancshares, Inc.
(Exact name of Registrant as Specified in Its Charter)
 

 
Virginia
001-38817
81-2871064
(State or Other Jurisdiction
of Incorporation)
(Commission File Number)
(IRS Employer
Identification No.)
     
10089 Fairfax Boulevard, Fairfax, VA
 
22030
(Address of Principal Executive Offices)
 
(Zip Code)
 
(703) 481-4567
(Registrants Telephone Number, Including Area Code)
 
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
 

 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):
 
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
Securities registered pursuant to Section 12(b) of the Act:
 
Title of each class
 
Trading
Symbol(s)
 
Name of each exchange on which registered
Common Stock
 
MNSB
 
The Nasdaq Stock Market LLC
Depositary Shares (each representing a 1/40th interest in a share of 7.50% Series A Fixed-Rate Non-Cumulative Perpetual Preferred Stock
 
MNSBP
 
The Nasdaq Stock Market LLC
 
 
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
 
Emerging growth company  
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 
 
 

 
Item 2.02 Results of Operations and Financial Condition.
 
On July 29, 2024, MainStreet Bancshares, Inc. (the “Company”) issued a press release setting forth the Company’s second quarter and year-to-date ended June 30, 2024 unaudited financial results. A copy of the Company’s press release is attached hereto as Exhibit 99.1, is hereby incorporated by reference, and will be posted on the Company's website.
 
Item 7.01 Regulation FD Disclosure
 
On July 29, 2024, the Company made available an investor presentation analyzing its second quarter financial results. A copy of the Company’s investor presentation is attached hereto as Exhibit 99.2, is hereby incorporated by reference, and will be posted on the Company’s website.
 
The information furnished under Items 2.02, 7.01 and 9.01 of this Current Report on Form 8-K, including the exhibits, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, and it shall not be deemed incorporated by reference in any filing under the Exchange Act, or the Securities Act of 1933, as amended, except as expressly set forth by specific reference in such filing to this Form 8-K.
 
Item 9.01 Financial Statements and Exhibits.
 
(d) Exhibits.
 
Exhibit
Number
 
Description
99.1
 
99.2   Investor Presentation dated July 29, 2024.
104
 
Cover Page Interactive Data File (embedded within the Inline XBRL document).
 
1

 
SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
   
MAINSTREET BANCSHARES, INC
       
Date: July 29, 2024
 
By:
/s/ Thomas J. Chmelik
     
Name: Thomas J. Chmelik
     
Title: Chief Financial Officer
 
2

 

Exhibit 99.1

 

 

PRESS RELEASE

 

 Contact: Debra Cope

July 29, 2024 8:00 AM ET

 

Director of Corporate Communications

    Desk (703) 481-4599
    Mobile (202) 468-3184

 

MainStreet Bancshares Inc. Reports a Profitable Second Quarter
Rise in Core Deposits Fueled an Uptick in Loan Growth

 

 

FAIRFAX, Va., July 29, 2024 /PRNewswire/ -- MainStreet Bancshares, Inc. (Nasdaq: MNSB & MNSBP), the holding company for MainStreet Bank, reported net income of $2.6 million for the second quarter of 2024.

 

Total deposits reached $1.8 billion in the second quarter, an increase of 10.2% from the second quarter of 2023. Loan growth is up 8.6% over the same period, also reaching $1.8 billion.

 

“We are now nine full quarters into the current interest rate cycle, and the entire industry has felt the effect of higher deposit costs. I’m happy to report that we experienced the softest impact this quarter, with our net interest margin settling in at a healthy 3.15%,” said Jeff W. Dick, Chairman and CEO of MainStreet Bancshares, Inc. and MainStreet Bank. “We see signs of an improving net interest margin going forward, but FOMC actions or other unforeseen externalities could affect momentum. Externalities aside, as our strategic initiatives start to bear fruit, we are confident and optimistic that the trail we have blazed to offer Banking as a Service (BaaS) will positively affect our net interest margin and our bottom line.”

 

“We remain focused on caring for our customers and meeting their continuing banking and borrowing needs while judiciously adding promising new relationships,” said Abdul Hersiburane, President of MainStreet Bank. “We’ve built our core customer funding sources up to 78% of total deposits.”

 

Loan growth in the second quarter was driven by a healthy rise in demand for commercial and industrial borrowing and in high-quality owner-occupied commercial real estate lending, a traditional area of strength for MainStreet Bank.

 

The Bank maintains a strong portfolio of earning assets, with very nominal AOCI exposure. The loan portfolio remains solid with net charge offs representing a mere eight basis points of average gross loans. Nonperforming assets account for 0.99% of total assets.

 

“We continue to carefully underwrite each loan opportunity and the lending team remains engaged with each borrower throughout their project lifecycle. If a borrower experiences a challenge, we work with them to face that challenge promptly and transparently,” said Tom Floyd, EVP and Chief Lending Officer at MainStreet Bank. “We have a meticulous understanding of our loan book and a rigorous risk management mindset.”
 
Banking-as-a-Service

In recent months, the weaknesses of other embedded banking solutions have been exposed—to the detriment of banks, their fintech clients and their end-customers. The Avenu team digested all the lessons that could be learned from these weaknesses and is implementing final enhancements to ensure a scalable and compliance rich solution. Avenu is live and in limited production until the final enhancements are fully integrated.

 

Avenu 
Avenu is the first and only embedded banking solution that connects our partners and their apps directly and seamlessly to our purpose-built Avenu core solution. We are not a sponsor bank without our own technology, and we are not a middleware software company without our own bank. We are Avenu, a leading financial technology company owned by an established community bank in the heart of Washington, D.C.
 
Avenu’s clients are fintechs, social media, 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 creating 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.

 

 

 

 
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UNAUDITED CONSOLIDATED BALANCE SHEET INFORMATION

(In thousands)

 

   

June 30, 2024

    March 31, 2024    

December 31, 2023*

   

September 30, 2023

   

June 30, 2023

 

ASSETS

                                       

Cash and cash equivalents

                                       

Cash and due from banks

  $ 41,697     $ 49,208     $ 53,581     $ 44,912     $ 67,700  

Federal funds sold

    49,762       75,533       60,932       76,271       30,341  

Total cash and cash equivalents

    91,459       124,741       114,513       121,183       98,041  

Investment securities available for sale, at fair value

    57,605       58,699       59,928       56,726       60,579  

Investment securities held to maturity, at amortized cost, net of allowance for credit losses of $0 for all periods

    16,036       17,251       17,275       17,565       17,590  

Restricted equity securities, at amortized cost

    26,797       23,924       24,356       20,619       20,304  

Loans, net of allowance for credit losses of $17,098, $16,531, $16,506, $15,626, and $16,047, respectively

    1,778,840       1,727,110       1,705,137       1,681,444       1,637,484  

Premises and equipment, net

    13,787       14,081       13,944       14,275       14,427  

Accrued interest and other receivables

    11,916       10,727       12,390       11,184       10,256  

Computer software, net of amortization

    17,205       15,691       14,657       13,373       12,266  

Bank owned life insurance

    38,901       38,609       38,318       38,035       37,763  

Other assets

    41,200       39,182       34,914       47,087       40,641  

Total Assets

  $ 2,093,746     $ 2,070,015     $ 2,035,432     $ 2,021,491     $ 1,949,351  

LIABILITIES AND STOCKHOLDERS’ EQUITY

                                       

Liabilities:

                                       

Non-interest bearing deposits

  $ 314,636     $ 348,945     $ 364,606     $ 394,859     $ 388,992  

Interest bearing demand deposits

    179,513       165,331       137,128       76,423       71,308  

Savings and NOW deposits

    60,867       46,036       45,878       46,550       51,294  

Money market deposits

    476,396       446,903       442,179       461,398       380,500  

Time deposits

    723,951       725,520       696,336       703,960       701,289  

Total deposits

    1,755,363       1,732,735       1,686,127       1,683,190       1,593,383  

Federal funds purchased

                15,000             30,000  

Subordinated debt

    72,841       72,741       72,642       72,543       72,444  

Other liabilities

    40,827       41,418       40,146       52,015       43,016  

Total Liabilities

    1,869,031       1,846,894       1,813,915       1,807,748       1,738,843  

Stockholders’ Equity:

                                       

Preferred stock

    27,263       27,263       27,263       27,263       27,263  

Common stock

    29,452       29,514       29,198       29,188       29,177  

Capital surplus

    66,392       65,940       65,985       65,407       64,768  

Retained earnings

    109,651       108,334       106,549       102,694       97,646  

Accumulated other comprehensive loss

    (8,043 )     (7,930 )     (7,478 )     (10,809 )     (8,346 )

Total Stockholders’ Equity

    224,715       223,121       221,517       213,743       210,508  

Total Liabilities and Stockholders’ Equity

  $ 2,093,746     $ 2,070,015     $ 2,035,432     $ 2,021,491     $ 1,949,351  

 

*Derived from audited financial statements

 

 

 

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UNAUDITED CONSOLIDATED STATEMENTS OF INCOME INFORMATION

(In thousands, except share and per share data)

 

 

   

Year-to-Date

   

Three Months Ended

 
   

June 30, 2024

   

June 30, 2023

   

June 30, 2024

   

March 31, 2024

   

December 31, 2023

   

September 30, 2023

   

June 30, 2023

 

INTEREST INCOME:

                                                       

Interest and fees on loans

  $ 62,034     $ 55,586     $ 31,546     $ 30,487     $ 30,849     $ 29,750     $ 28,855  

Interest on investment securities

                                                       

Taxable securities

    865       926       430       435       451       459       407  

Tax-exempt securities

    538       529       268       270       268       268       265  

Interest on federal funds sold

    2,264       2,311       1,083       1,182       1,510       1,217       1,179  

Total interest income

    65,701       59,352       33,327       32,374       33,078       31,694       30,706  

INTEREST EXPENSE:

                                                       

Interest on interest bearing demand deposits

    4,032       594       2,172       1,860       1,058       240       251  

Interest on savings and NOW deposits

    347       255       190       157       146       145       147  

Interest on money market deposits

    10,816       4,129       5,638       5,178       5,639       4,156       2,926  

Interest on time deposits

    17,861       11,221       9,027       8,833       8,257       7,526       7,077  

Interest on federal funds purchased

    298       239       191       107       25       35       201  

Interest on Federal Home Loan Bank advances

    46       919             46       118       186       13  

Interest on subordinated debt

    1,640       1,632       820       820       828       828       820  

Total interest expense

    35,040       18,989       18,038       17,001       16,071       13,116       11,435  

Net interest income

    30,661       40,363       15,289       15,373       17,007       18,578       19,271  

Provision for (recovery of) credit losses

    443       921       638       (195 )     466       255       638  

Net interest income after provision for (recovery of) credit losses

    30,218       39,442       14,651       15,568       16,541       18,323       18,633  

NON-INTEREST INCOME:

                                                       

Deposit account service charges

    959       1,125       490       469       510       514       535  

Bank owned life insurance income

    583       514       291       292       283       272       259  

Net loss on securities called or matured

    (48 )           (48 )                        

Other non-interest income

    270       174       140       130       68       177       16  

Total non-interest income

    1,764       1,813       873       891       861       963       810  

NON-INTEREST EXPENSES:

                                                       

Salaries and employee benefits

    14,972       14,216       7,484       7,488       7,129       6,924       6,595  

Furniture and equipment expenses

    1,875       1,270       940       935       804       713       772  

Advertising and marketing

    1,020       1,495       566       454       271       577       698  

Occupancy expenses

    849       912       415       435       397       375       426  

Outside services

    1,614       994       839       774       352       697       504  

Administrative expenses

    471       426       229       242       219       277       211  

Other operating expenses

    4,190       3,242       2,195       1,996       1,964       1,866       1,646  

Total non-interest expenses

    24,991       22,555       12,668       12,324       11,136       11,429       10,852  

Income before income tax expense

    6,991       18,700       2,856       4,135       6,266       7,857       8,591  

Income tax expense

    1,068       3,602       238       830       1,120       1,516       1,645  

Net income

    5,923       15,098       2,618       3,305       5,146       6,341       6,946  

Preferred stock dividends

    1,078       1,078       539       539       539       539       539  

Net income available to common shareholders

  $ 4,845     $ 14,020     $ 2,079     $ 2,766     $ 4,607     $ 5,802     $ 6,407  

Net income per common share, basic and diluted

  $ 0.64     $ 1.86     $ 0.27     $ 0.36     $ 0.61     $ 0.77     $ 0.85  

Weighted average number of common shares, basic and diluted

    7,610,188       7,519,949       7,608,389       7,611,990       7,527,327       7,524,332       7,522,764  

 

 

 

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UNAUDITED LOAN, DEPOSIT AND BORROWING DETAIL

(In thousands)

 

   

June 30, 2024

   

March 31, 2024

   

June 30, 2023

   

Percentage Change

 
   

$ Amount

   

% of Total

   

$ Amount

   

% of Total

   

$ Amount

   

% of Total

   

Last 3 Mos

   

Last 12 Mos

 

LOANS:

                                                               

Construction and land development loans

  $ 410,698       22.8 %   $ 408,903       23.4 %   $ 421,277       25.4 %     0.4 %     -2.5 %

Residential real estate loans

    449,700       25.0 %     451,991       25.8 %     410,550       24.7 %     -0.5 %     9.5 %

Commercial real estate loans

    845,030       46.9 %     813,387       46.5 %     727,772       43.9 %     3.9 %     16.1 %

Commercial and industrial loans

    93,559       5.2 %     71,822       4.1 %     93,604       5.6 %     30.3 %     0.0 %

Consumer loans

    2,232       0.1 %     2,902       0.2 %     5,750       0.4 %     -23.1 %     -61.2 %

Total Gross Loans

  $ 1,801,219       100.0 %   $ 1,749,005       100.0 %   $ 1,658,953       100.0 %     3.0 %     8.6 %

Less: Allowance for credit losses

    (17,098 )             (16,531 )             (16,047 )                        

Net deferred loan fees

    (5,281 )             (5,364 )             (5,422 )                        

Net Loans

  $ 1,778,840             $ 1,727,110             $ 1,637,484                          

DEPOSITS:

                                                               

Non-interest bearing deposits

  $ 314,636       17.9 %   $ 348,945       20.1 %   $ 388,992       24.4 %     -9.8 %     -19.1 %

Interest-bearing deposits:

                                                               

Demand deposits

    179,513       10.2 %     165,331       9.5 %     71,308       4.5 %     8.6 %     151.7 %

Savings and NOW deposits

    60,867       3.5 %     46,036       2.7 %     51,294       3.2 %     32.2 %     18.7 %

Money market accounts

    476,396       27.1 %     446,903       25.8 %     380,500       23.9 %     6.6 %     25.2 %

Certificates of deposit $250,000 or more

    473,827       27.0 %     467,892       27.0 %     406,583       25.5 %     1.3 %     16.5 %

Certificates of deposit less than $250,000

    250,124       14.3 %     257,628       14.9 %     294,706       18.5 %     -2.9 %     -15.1 %

Total Deposits

  $ 1,755,363       100.0 %   $ 1,732,735       100.0 %   $ 1,593,383       100.0 %     1.3 %     10.2 %

BORROWINGS:

                                                               

Federal funds purchased

          0.0 %           0.0 %     30,000       29.3 %     0.0 %     -100.0 %

Subordinated debt

    72,841       100.0 %     72,741       100.0 %     72,444       70.7 %     0.1 %     0.5 %

Total Borrowings

  $ 72,841       100.0 %   $ 72,741       100.0 %   $ 102,444       100.0 %     0.1 %     -28.9 %

Total Deposits and Borrowings

  $ 1,828,204             $ 1,805,476             $ 1,695,827               1.3 %     7.8 %
                                                                 

Core customer funding sources (1)

  $ 1,376,991       75.3 %   $ 1,312,746       72.7 %   $ 1,184,958       69.9 %     4.9 %     16.2 %

Brokered and listing service sources (2)

    378,372       20.7 %     419,989       23.3 %     408,425       24.1 %     -9.9 %     -7.4 %

Federal funds purchased

          0.0 %           0.0 %     30,000       1.7 %     0.0 %     -100.0 %

Subordinated debt (3)

    72,841       4.0 %     72,741       4.0 %     72,444       4.3 %     0.1 %     0.5 %

Total Funding Sources

  $ 1,828,204       100.0 %   $ 1,805,476       100.0 %   $ 1,695,827       100.0 %     1.3 %     7.8 %

 

(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.

  Excludes $290.5 million in core deposits placed in reciprocal networks for FDIC insurance coverage that will be classified as brokered deposits on the call report in pursuant to rule 12 CFR 337.6(e) as of June 30, 2024.

(3)

Subordinated debt obligation qualifies as Tier 2 capital at the holding company and Tier 1 capital at the Bank

 

 

 

 

bancshares1920x160.jpg

UNAUDITED AVERAGE BALANCE SHEETS, INTEREST AND RATES

(In thousands)

 

   

For the three months ended June 30, 2024

   

For the three months ended June 30, 2023

 
   

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)

  $ 1,782,124     $ 31,546       7.10 %   $ 1,649,300     $ 28,855       7.02 %

Securities:

                                               

Taxable

    55,323       430       3.12 %     54,270       407       3.01 %

Tax-exempt

    36,717       339       3.71 %     37,876       335       3.55 %

Federal funds and interest-bearing deposits

    84,705       1,083       5.13 %     87,608       1,179       5.40 %

Total interest-earning assets

  $ 1,958,869     $ 33,398       6.84 %   $ 1,829,054     $ 30,776       6.75 %

Other assets

    131,656                       83,599                  

Total assets

  $ 2,090,525                     $ 1,912,653                  

Liabilities and Stockholders’ Equity:

                                               

Interest-bearing liabilities:

                                               

Interest-bearing demand deposits

  $ 172,221     $ 2,172       5.06 %   $ 73,800     $ 251       1.36 %

Savings and NOW deposits

    47,767       190       1.60 %     50,644       147       1.16 %

Money market deposit accounts

    463,641       5,638       4.88 %     344,118       2,926       3.41 %

Time deposits

    715,777       9,027       5.06 %     723,056       7,077       3.93 %

Total interest-bearing deposits

  $ 1,399,406     $ 17,027       4.88 %   $ 1,191,618     $ 10,401       3.50 %

Federal funds purchased

    13,298       191       5.76 %     15,174       201       5.31 %

FHLB advances

                      989       13       5.27 %

Subordinated debt

    72,802       820       4.52 %     72,405       820       4.54 %

Total interest-bearing liabilities

  $ 1,485,506     $ 18,038       4.87 %   $ 1,280,186     $ 11,435       3.58 %

Demand deposits and other liabilities

    381,825                       424,505                  

Total liabilities

  $ 1,867,331                     $ 1,704,691                  

Stockholders’ Equity

    223,194                       207,962                  

Total Liabilities and Stockholders’ Equity

  $ 2,090,525                     $ 1,912,653                  

Interest Rate Spread

                    1.97 %                     3.17 %

Net Interest Income

          $ 15,360                     $ 19,341          

Net Interest Margin

                    3.15 %                     4.24 %

 

(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

 

 

 

bancshares1920x160.jpg

UNAUDITED AVERAGE BALANCE SHEETS, INTEREST AND RATES

(In thousands)

 

   

For the six months ended June 30, 2024

   

For the six months ended June 30, 2023

 
   

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)

  $ 1,755,443     $ 62,034       7.13 %   $ 1,624,664     $ 55,586       6.90 %

Securities:

                                               

Taxable

    55,708       865       3.13 %     56,011       926       3.33 %

Tax-exempt

    37,068       681       3.70 %     37,908       670       3.56 %

Federal funds and interest-bearing deposits

    88,349       2,264       5.17 %     103,053       2,311       4.52 %

Total interest-earning assets

  $ 1,936,568     $ 65,844       6.86 %   $ 1,821,636     $ 59,493       6.59 %

Other assets

    127,430                       77,601                  

Total assets

  $ 2,063,998                     $ 1,899,237                  

Liabilities and Stockholders’ Equity:

                                               

Interest-bearing liabilities:

                                               

Interest-bearing demand deposits

  $ 159,234     $ 4,032       5.11 %   $ 78,568     $ 594       1.52 %

Savings and NOW deposits

    45,993       347       1.52 %     51,290       255       1.00 %

Money market deposit accounts

    448,647       10,816       4.86 %     284,906       4,129       2.92 %

Time deposits

    712,898       17,861       5.05 %     698,384       11,221       3.24 %

Total interest-bearing deposits

  $ 1,366,772     $ 33,056       4.88 %   $ 1,113,148     $ 16,199       2.93 %

Federal funds purchased

    10,386       298       5.79 %     9,103       239       5.29 %

FHLB advances

    1,648       46       5.63 %     39,199       919       4.73 %

Subordinated debt

    72,752       1,640       4.55 %     72,355       1,632       4.55 %

Total interest-bearing liabilities

  $ 1,451,558     $ 35,040       4.87 %   $ 1,233,805     $ 18,989       3.10 %

Demand deposits and other liabilities

    389,792                       460,632                  

Total liabilities

  $ 1,841,350                     $ 1,694,437                  

Stockholders’ Equity

    222,648                       204,800                  

Total Liabilities and Stockholders’ Equity

  $ 2,063,998                     $ 1,899,237                  

Interest Rate Spread

                    1.99 %                     3.49 %

Net Interest Income

          $ 30,804                     $ 40,504          

Net Interest Margin

                    3.21 %                     4.48 %

 

(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

 
 

 

bancshares1920x160.jpg

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,

 
   

2024

   

2023

   

2024

   

2023

 

Per share Data and Shares Outstanding

                               

Earnings per common share (basic and diluted)

  $ 0.27     $ 0.85     $ 0.64     $ 1.86  

Book value per common share

  $ 25.99     $ 24.36     $ 25.99     $ 24.36  

Tangible book value per common share(2)

  $ 23.72     $ 22.73     $ 23.72     $ 22.73  

Weighted average common shares (basic and diluted)

    7,608,389       7,522,764       7,610,188       7,519,949  

Common shares outstanding at end of period

    7,598,529       7,522,297       7,598,529       7,522,297  

Performance Ratios

                               

Return on average assets (annualized)

    0.50 %     1.46 %     0.58 %     1.60 %

Return on average equity (annualized)

    4.70 %     13.40 %     5.36 %     14.87 %

Return on average common equity (annualized)

    5.36 %     14.22 %     6.11 %     15.92 %

Yield on earning assets (FTE) (2) (annualized)

    6.84 %     6.75 %     6.86 %     6.59 %

Cost of interest bearing liabilities (annualized)

    4.87 %     3.58 %     4.87 %     3.10 %

Net interest spread (FTE)(2)

    1.97 %     3.17 %     1.99 %     3.49 %

Net interest margin (FTE)(2) (annualized)

    3.15 %     4.24 %     3.21 %     4.48 %

Non-interest income as a percentage of average assets (annualized)

    0.17 %     0.17 %     0.17 %     0.19 %

Non-interest expense to average assets (annualized)

    2.43 %     2.28 %     2.44 %     2.39 %

Efficiency ratio(3)

    78.38 %     54.04 %     77.07 %     53.48 %

Asset Quality

                               

Allowance for credit losses (ACL)

                               

Beginning balance, ACL - loans

  $ 16,531     $ 15,435     $ 16,506     $ 14,114  

Add: recoveries

    6       1       8       12  

Less: charge-offs

    (370 )     (6 )     (511 )     (6 )

Add: provision for credit losses - loans

    931       617       1,095       1,032  

Add: current expected credit losses, nonrecurring adoption

                      895  

Ending balance, ACL - loans

  $ 17,098     $ 16,047     $ 17,098     $ 16,047  
                                 

Beginning balance, reserve for unfunded commitment (RUC)

  $ 650     $ 1,178     $ 1,009     $  

Add: current expected credit losses, nonrecurring adoption

                      1,310  

Add: provision for unfunded commitments, net

    (293 )     21       (652 )     (111 )

Ending balance, RUC

  $ 357     $ 1,199     $ 357     $ 1,199  

Total allowance for credit losses

  $ 17,455     $ 17,246     $ 17,455     $ 17,246  
                                 

Allowance for credit losses on loans to total gross loans

    0.95 %     0.97 %     0.95 %     0.97 %

Allowance for credit losses to total gross loans

    0.97 %     1.04 %     0.97 %     1.04 %

Allowance for credit losses on loans to non-performing loans

 

83

%     N/A    

83

%     N/A  

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

    0.08 %     0.00 %     0.06 %     0.00 %

Concentration Ratios

                               

Commercial real estate loans to total capital (4)

    367.24 %     363.70 %     367.24 %     363.70 %

Construction loans to total capital (5)

    130.19 %     139.59 %     130.19 %     139.59 %

Non-performing Assets

                               

Loans 30-89 days past due to total gross loans

    0.81 %     0.00 %     0.81 %     0.00 %

Loans 90 days past due and accruing to total gross loans

    0.00 %     0.00 %     0.00 %     0.00 %

Non-accrual loans to total gross loans

    1.15 %     0.00 %     1.15 %     0.00 %

Other real estate owned

  $     $     $     $  

Non-performing loans

  $ 20,691     $     $ 20,691     $  

Non-performing assets to total assets

    0.99 %     0.00 %     0.99 %     0.00 %

Regulatory Capital Ratios (Bank only) (1)

                               

Total risk-based capital ratio

    16.78 %     16.79 %     16.78 %     16.79 %

Tier 1 risk-based capital ratio

    15.85 %     15.83 %     15.85 %     15.83 %

Leverage ratio

    14.22 %     14.81 %     14.22 %     14.81 %

Common equity tier 1 ratio

    15.85 %     15.83 %     15.85 %     15.83 %

Other information

                               

Closing stock price

  $ 17.73     $ 22.66     $ 17.73     $ 22.66  

Tangible equity / tangible assets (2)

    9.99 %     10.24 %     9.99 %     10.24 %

Average tangible equity / average tangible assets (2)

    9.97 %     10.34 %     10.10 %     10.28 %

Number of full time equivalent employees

    195       179       195       179  

Number of full service branch offices

    6       6       6       6  

 

(1)

Regulatory capital ratios as of June 30, 2024 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, multifamily, and construction loans as a percentage of Bank capital

(5)

Construction loans as a percentage of Bank capital

 

 

 

bancshares1920x160.jpg

Unaudited Reconciliation of Certain Non-GAAP Financial Measures

(Dollars In thousands)

 

   

For the three months ended June 30,

   

For the six months ended June 30,

 
   

2024

   

2023

   

2024

   

2023

 

Net interest margin (FTE)

                               

Net interest income (GAAP)

  $ 15,289     $ 19,271     $ 30,661     $ 40,363  

FTE adjustment on tax-exempt securities

    71       70       143       141  

Net interest income (FTE) (non-GAAP)

    15,360       19,341       30,804       40,504  
                                 

Average interest earning assets

    1,958,869       1,829,054       1,936,568       1,821,636  

Net interest margin (GAAP)

    3.13 %     4.23 %     3.19 %     4.47 %

Net interest margin (FTE) (non-GAAP)

    3.15 %     4.24 %     3.21 %     4.48 %

 

   

For the three months ended June 30,

   

For the six months ended June 30,

 
   

2024

   

2023

   

2024

   

2023

 

Yield on earning assets (FTE)

                               

Total interest income (GAAP)

  $ 33,327     $ 30,706     $ 65,701     $ 59,352  

FTE adjustment on tax-exempt securities

    71       70       143       141  

Total interest income (FTE) (non-GAAP)

    33,398       30,776       65,844       59,493  
                                 

Average interest earning assets

    1,958,869       1,829,054       1,936,568       1,821,636  

Yield on earning assets (GAAP)

    6.82 %     6.73 %     6.84 %     6.57 %

Yield on earning assets (FTE) (non-GAAP)

    6.84 %     6.75 %     6.86 %     6.59 %

 

   

For the three months ended June 30,

   

For the six months ended June 30,

 
   

2024

   

2023

   

2024

   

2023

 

Net interest spread (FTE)

                               

Yield on earning assets (GAAP)

    6.82 %     6.73 %  

6.84

%  

6.57

%

Yield on earning assets (FTE) (non-GAAP)

    6.84 %     6.75 %  

6.86

%  

6.59

%
                                 

Yield on interest-bearing liabilities (GAAP)

    4.87 %     3.58 %  

4.87

%     3.10 %

Net interest spread (GAAP)

    1.95 %     3.15 %  

1.97

%  

3.47

%

Net interest spread (FTE) (non-GAAP)

    1.97 %     3.17 %     1.99 %  

3.49

%

 

   

As of June 30,

   

As of June 30,

 
   

2024

   

2023

   

2024

   

2023

 

Tangible common stockholders' equity

                               

Total stockholders equity (GAAP)

  $ 224,715     $ 210,508     $ 224,715     $ 210,508  

Less: intangible assets

    (17,205 )     (12,266 )     (17,205 )     (12,266 )

Tangible stockholders' equity (non-GAAP)

    207,510       198,242     $ 207,510     $ 198,242  

Less: preferred stock

    (27,263 )     (27,263 )     (27,263 )     (27,263 )

Tangible common stockholders' equity (non-GAAP)

    180,247       170,979       180,247       170,979  
                                 

Common shares outstanding

    7,598,529       7,522,297       7,598,529       7,522,297  

Tangible book value per common share (non-GAAP)

  $ 23.72     $ 22.73     $ 23.72     $ 22.73  

 

   

As of June 30,

   

As of June 30,

 
   

2024

   

2023

   

2024

   

2023

 

Stockholders equity, adjusted

                               

Total stockholders equity (GAAP)

  $ 224,715     $ 210,508     $ 224,715     $ 210,508  

Less: intangible assets

    (17,205 )     (12,266 )     (17,205 )     (12,266 )

Total tangible stockholders equity (non-GAAP)

    207,510       198,242       207,510       198,242  

 

   

As of June 30,

   

As of June 30,

 
   

2024

   

2023

   

2024

   

2023

 

Total tangible assets

                               

Total assets (GAAP)

  $ 2,093,746     $ 1,949,351     $ 2,093,746     $ 1,949,351  

Less: intangible assets

    (17,205 )     (12,266 )     (17,205 )     (12,266 )

Total tangible assets (non-GAAP)

    2,076,541       1,937,085       2,076,541       1,937,085  

 

   

For the three months ended June 30,

   

For the six months ended June 30,

 
   

2024

   

2023

   

2024

   

2023

 

Average tangible stockholders' equity

                               

Total average stockholders' equity (GAAP)

  $ 223,194     $ 207,962     $ 222,648     $ 204,800  

Less: average intangible assets

    (16,386 )     (11,284 )     (15,732 )     (10,585 )

Total average tangible stockholders' equity (non-GAAP)

    206,808       196,678       206,916       194,215  

 

   

For the three months ended June 30,

   

For the six months ended June 30,

 
   

2024

   

2023

   

2024

   

2023

 

Average tangible assets

                               

Total average assets (GAAP)

  $ 2,090,525     $ 1,912,653     $ 2,063,998     $ 1,899,237  

Less: average intangible assets

    (16,386 )     (11,284 )     (15,732 )     (10,585 )

Total average tangible assets (non-GAAP)

    2,074,139       1,901,369       2,048,266       1,888,652  

 

 

Exhibit 99.2

 

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v3.24.2
Document And Entity Information
Jul. 29, 2024
Document Information [Line Items]  
Entity, Registrant Name MainStreet Bancshares, Inc.
Document, Type 8-K
Document, Period End Date Jul. 29, 2024
Entity, Incorporation, State or Country Code VA
Entity, File Number 001-38817
Entity, Tax Identification Number 81-2871064
Entity, Address, Address Line One 10089 Fairfax Boulevard
Entity, Address, City or Town Fairfax
Entity, Address, State or Province VA
Entity, Address, Postal Zip Code 22030
City Area Code 703
Local Phone Number 481-4567
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity, Emerging Growth Company true
Entity, Ex Transition Period true
Amendment Flag false
Entity, Central Index Key 0001693577
CommonStock Custom [Member]  
Document Information [Line Items]  
Title of 12(b) Security Common Stock
Trading Symbol MNSB
Security Exchange Name NASDAQ
DepositaryShares Custom [Member]  
Document Information [Line Items]  
Title of 12(b) Security Depositary Shares
Trading Symbol MNSBP
Security Exchange Name NASDAQ

MainStreet Bancshares (NASDAQ:MNSBP)
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부터 11월(11) 2023 으로 11월(11) 2024 MainStreet Bancshares 차트를 더 보려면 여기를 클릭.