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MainStreet Bank Reports Record Third Quarter Performance

Donnerstag, 13.10.2016 21:05 von

PR Newswire

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.

MainStreet Bank (PRNewsFoto/MainStreet Bank)

Net Interest income of $13.67 million reported for September 30, 2016 improved $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 in Herndon, 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, 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.  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, maintenance and development of well-established and valued client relationships and referral source relationships, and acquisition or loss of key production personnel. Other risks that can affect the Bank are detailed from time to time in our annual reports.  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. 

 



BALANCE SHEETS

(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







LIABILITIES AND STOCKHOLDERS' EQUITY






Liabilities:






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







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













Other Financial Highlights






   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







Regulatory Capital Ratios






   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%



















 


STATEMENTS OF INCOME

(Unaudited)

(In thousands, except share data)





Year-to-Date

Three Months Ended


9/30/16

9/30/15

9/30/16

6/30/16

3/31/16

12/31/15

9/30/15

INTEREST INCOME:








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









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

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

 

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

 

 



 Contact:          

Jeff W. Dick


(703) 481-4567  



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SOURCE MainStreet Bancshares, Inc.