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FAIRFAX, Va., Oct. 13, 2016 /PRNewswire/ — MainStreet Bancshares, Inc. (OTCQB: MNSB), the holding company for MainStreet Bank, nearly tripled its third quarter 2016 earnings over the third quarter 2015. Net income of $2.8 million through September 30, 2016 was more than double the level of net income through September 30, 2015. Earnings per share for the nine months ended September 30, 2016 is $0.66 versus $0.29 for the same nine month period in 2015.
Net Interest income of $13.67 million reported for September 30, 2016improved $2.4 million over net interest income from September 30, 2015. The net interest margin through September 30, 2016 is 3.79%.
Non-interest income (net of securities gains) is $1.1 million through September 30, 2016 compared to $791 thousand for the same period in 2015, a 36% improvement. Non-interest expense through September 30, 2016 is $10.5 million compared to $9.1 million for the same period in 2015. The increase is primarily in salaries supporting ongoing growth and expansion.
MainStreet’s balance sheet improved 11% from third quarter 2015 with total assets of $536 million against total assets of $481 million respectively.
Net loans outstanding at September 30, 2016 total $441 million against net loans outstanding at September 30, 2015 of $389 million, an increase of $52 million or 13.4%. Asset quality remains very strong, as nonperforming loans represent a mere nine basis points of total gross loans on September 30, 2016.
Non-interest bearing deposits increased to $114 million as of September 30, 2016, up 57% from September 30, 2015. Non-interest bearing deposits represent 26% of total deposits at September 30, 2016. Time deposits are down $5 million from the prior period. Total deposits as of September 30, 2016 were $447 million, an increase of $59 million from September 30, 2015.
The share price closed on September 30, 2016 at $12.60 per share. During the third quarter of 2016, there were 133 trades for a total of 177,018 shares with a dollar value of $2,165,731. The high share price for the third quarter of 2016 was $12.75 per share.
QUOTES: “We are seeing a very positive and consistent trend in earnings performance,” says Jeff W. Dick, Chairman, CEO and President of MainStreet Bank. “Likewise, we have seen a significantly improved level of non-interest bearing deposit account balances. MainStreet is focused on achieving strong balance sheet growth funded by low-cost deposits. We are currently managing $6.7 million in assets per employee, with a goal to improve that number to $8.8 million in assets per employee. That improvement, combined with continuous improvement in fee income for all areas, including the recently established payment systems group, will help us to achieve superior returns.”
ABOUT MAINSTREET BANK: MainStreet operates five branches inHerndon, Fairfax, Fairfax City, McLean and Clarendon. In addition, MainStreet has 55,000 free ATMs and a fully integrated online 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 literally “put our bank” in well over 750 businesses in the Metropolitan area.
MainStreet offers a full complement 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 mobile banking and Apple Pay to instant-issue Debit Cards, MainStreet Bank is always looking for ways to improve its customer experience. Additionally, MainStreet released Aircharity® in 2012. Aircharity® is a unique solution that empowers people and organizations to raise money via email, websites and social media. The product allows a customer to open an account and accept donations from debit cards, credit cards and electronic checks.
MainStreet Bank was the first community bank in the Washington, DCMetropolitan area to offer a full online business banking solution. MainStreet Bank was also the first bank headquartered in the Commonwealth of Virginiato offer CDARS – a solution that provides multi-million-dollar FDIC insurance.
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BALANCE SHEETS |
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|
(Unaudited) |
|||||
|
(In thousands, except ratios) |
|||||
|
9/30/16 |
6/30/16 |
3/31/16 |
12/31/15 |
9/30/15 |
|
|
ASSETS |
|||||
|
Cash and cash equivalents |
|||||
|
Cash and due from banks |
$ 13,142 |
$ 17,483 |
$ 9,463 |
$ 7,211 |
$ 17,736 |
|
Federal funds sold |
797 |
― |
805 |
― |
779 |
|
Total cash and cash equivalents |
13,939 |
17,483 |
10,268 |
7,211 |
18,515 |
|
Investment securities available for sale, at fair value |
26,434 |
25,869 |
33,111 |
33,657 |
36,317 |
|
Investment securities held to maturity |
26,518 |
24,357 |
21,955 |
19,857 |
17,282 |
|
Restricted equity securities, at cost |
3,423 |
3,420 |
3,843 |
3,508 |
3,718 |
|
Loans, net of allowance for loan losses |
441,335 |
417,640 |
412,685 |
398,291 |
389,327 |
|
Premises and equipment, net |
12,500 |
12,339 |
12,449 |
12,526 |
12,616 |
|
Other real estate owned, net |
135 |
135 |
135 |
135 |
234 |
|
Accrued interest and other receivables |
2,265 |
2,194 |
2,076 |
1,857 |
1,411 |
|
Bank owned life insurance |
8,126 |
8,051 |
― |
― |
― |
|
Other assets |
1,234 |
1,437 |
1,286 |
1,208 |
1,552 |
|
Total Assets |
$ 535,909 |
$ 512,925 |
$ 497,808 |
$ 478,250 |
$ 480,972 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Liabilities: |
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|
Non-interest bearing deposits |
$ 114,128 |
$ 98,505 |
$ 81,072 |
$ 68,409 |
$ 72,659 |
|
Savings and NOW deposits |
41,896 |
40,243 |
38,877 |
38,770 |
37,683 |
|
Money market deposits |
76,152 |
59,906 |
54,455 |
59,580 |
58,023 |
|
Other time deposits |
214,636 |
224,753 |
228,819 |
218,795 |
220,057 |
|
Total deposits |
446,812 |
423,407 |
403,223 |
385,554 |
388,422 |
|
Securities sold under agreements to repurchase |
2,736 |
― |
― |
19 |
521 |
|
Federal Home Loan Bank advances and other borrowings |
40,204 |
44,409 |
50,229 |
49,509 |
50,254 |
|
Other liabilities |
872 |
957 |
1,209 |
1,044 |
660 |
|
Total Liabilities |
490,624 |
468,773 |
454,661 |
436,126 |
439,857 |
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Stockholders’ Equity: |
|||||
|
Common stock |
16,645 |
16,634 |
16,624 |
16,515 |
16,508 |
|
Capital surplus |
21,995 |
21,913 |
21,814 |
21,837 |
21,757 |
|
Retained earnings |
6,724 |
5,712 |
4,839 |
3,924 |
2,980 |
|
Accumulated other comprehensive income (loss) |
(79) |
(107) |
(130) |
(152) |
(130) |
|
Total Stockholders’ Equity |
45,285 |
44,152 |
43,147 |
42,124 |
41,115 |
|
Total Liabilities and Stockholders’ Equity |
$ 535,909 |
$ 512,925 |
$ 497,808 |
$ 478,250 |
$ 480,972 |
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Other Financial Highlights |
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Annualized return on average assets |
0.75% |
0.73% |
0.76% |
0.53% |
0.42% |
|
Annualized return on average equity |
8.52% |
8.25% |
8.56% |
5.33% |
4.01% |
|
Annualized net interest margin |
3.79% |
3.82% |
3.84% |
3.96% |
4.03% |
|
Efficiency ratio |
71.09% |
71.02% |
70.06% |
73.01% |
73.99% |
|
Gross loans to deposits |
99.16% |
99.74% |
103.52% |
104.57% |
101.54% |
|
Allowance for loan losses to total loans |
0.82% |
0.87% |
0.88% |
0.91% |
0.95% |
|
Past due loans 30-89 days to total gross loans |
0.02% |
0.01% |
0.01% |
0.03% |
0.03% |
|
Past due loans 90 days or more to total gross loans |
0.00% |
0.00% |
0.01% |
0.00% |
0.00% |
|
Non-accrual loans to total gross loans |
0.09% |
0.09% |
0.17% |
0.17% |
0.21% |
|
Quarterly net loan charge-offs (recoveries) |
$ 109 |
$ 111 |
$ 97 |
$ 208 |
$ 91 |
|
Book value per share |
$ 10.65 |
$ 10.39 |
$ 10.16 |
$ 10.00 |
$ 9.78 |
|
Closing stock price |
$ 12.60 |
$ 11.90 |
$ 11.95 |
$ 12.35 |
$ 11.59 |
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Regulatory Capital Ratios |
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|
Tier 1 risk-based capital ratio |
10.02% |
10.22% |
10.27% |
10.29% |
|
|
Common equity tier 1 capital ratio |
10.02% |
10.22% |
10.27% |
10.29% |
|
|
Total risk-based capital ratio |
10.86% |
11.09% |
11.17% |
11.22% |
|
|
Leverage ratio |
8.91% |
8.98% |
8.90% |
9.12% |
|
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STATEMENTS OF INCOME |
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|
(Unaudited) |
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|
(In thousands, except share data) |
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|
Year-to-Date |
Three Months Ended |
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|
9/30/16 |
9/30/15 |
9/30/16 |
6/30/16 |
3/31/16 |
12/31/15 |
9/30/15 |
|
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INTEREST INCOME: |
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|
Interest and fees on loans |
$ 14,925 |
$ 12,217 |
$ 5,111 |
$ 4,969 |
$ 4,845 |
$ 4,793 |
$ 4,438 |
|
Interest on investment securities |
936 |
687 |
339 |
292 |
305 |
245 |
231 |
|
Interest on federal funds sold |
74 |
30 |
29 |
21 |
24 |
15 |
14 |
|
Total interest income |
15,935 |
12,934 |
5,479 |
5,282 |
5,174 |
5,053 |
4,683 |
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INTEREST EXPENSE: |
|||||||
|
Interest on savings and NOW deposits |
123 |
110 |
43 |
41 |
39 |
40 |
40 |
|
Interest on money market deposits |
204 |
115 |
83 |
62 |
59 |
55 |
52 |
|
Interest on other time deposits |
1,748 |
1,401 |
605 |
589 |
554 |
528 |
478 |
|
Interest on Federal Home Loan Bank advances and other borrowings |
192 |
48 |
71 |
65 |
56 |
45 |
41 |
|
Total interest expense |
2,267 |
1,674 |
802 |
757 |
708 |
668 |
611 |
|
Net interest income |
13,668 |
11,260 |
4,677 |
4,525 |
4,466 |
4,385 |
4,072 |
|
Provision for loan losses |
310 |
1,355 |
90 |
135 |
85 |
145 |
775 |
|
Net interest income after provision for loan losses |
13,358 |
9,905 |
4,587 |
4,390 |
4,381 |
4,240 |
3,297 |
|
OTHER INCOME: |
|||||||
|
Deposit account service charges |
553 |
352 |
205 |
218 |
130 |
135 |
130 |
|
Gain on securities available for sale |
― |
214 |
― |
― |
― |
― |
― |
|
Bank owned life insurance income |
126 |
― |
75 |
51 |
― |
― |
― |
|
Other fee income |
395 |
439 |
156 |
153 |
86 |
125 |
232 |
|
Total other income |
1,074 |
1,005 |
436 |
422 |
216 |
260 |
362 |
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OTHER EXPENSES: |
|||||||
|
Salaries and employee benefits |
6,550 |
5,653 |
2,208 |
2,241 |
2,101 |
1,873 |
1,965 |
|
Furniture and equipment expenses |
842 |
824 |
297 |
267 |
278 |
290 |
282 |
|
Advertising and marketing |
220 |
237 |
102 |
78 |
40 |
157 |
99 |
|
Occupancy expenses |
576 |
522 |
200 |
203 |
173 |
162 |
162 |
|
Outside services |
413 |
231 |
167 |
136 |
110 |
156 |
74 |
|
Administrative expenses |
261 |
243 |
93 |
99 |
69 |
84 |
87 |
|
Other operating expenses |
1,614 |
1,365 |
571 |
534 |
509 |
549 |
458 |
|
Total other expenses |
10,476 |
9,075 |
3,638 |
3,558 |
3,280 |
3,271 |
3,127 |
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INCOME BEFORE INCOME TAXES |
3,956 |
1,835 |
1,385 |
1,254 |
1,317 |
1,229 |
532 |
|
Income tax expense |
1,157 |
611 |
373 |
381 |
403 |
283 |
179 |
|
NET INCOME |
$ 2,799 |
$ 1,224 |
$ 1,012 |
$ 873 |
$ 914 |
$ 946 |
$ 353 |
|
Net income per common share, basic and diluted |
$ 0.66 |
$ 0.29 |
$ 0.24 |
$ 0.20 |
$ 0.22 |
$ 0.22 |
$ 0.08 |
|
Weighted average number of shares, basic and diluted |
4,255,170 |
4,231,773 |
4,260,232 |
4,261,118 |
4,244,104 |
4,226,098 |
4,232,811 |
