FAIRFAX, Va., Jan. 26, 2018 /PRNewswire/ -- MainStreet Bancshares, Inc. (OTCQB: MNSB), the holding company for MainStreet Bank, today announced year-end 2017 assets reaching $808 million – a 40% increase from year-end 2016 total assets of $576 million.
Net loans outstanding at December 31, 2017 total $654 million against net loans outstanding at December 31, 2016 of $464 million - an increase of 41%. Asset quality remains very strong with nonperforming loans representing only 0.31% of the total gross loans outstanding on December 31, 2017.
Non-interest-bearing deposits increased $65.5 million during the year to $172 million as of December 31, 2017. This represents an increase of 62% from December 31, 2016. Non-interest-bearing deposits represent 26% of total deposits at December 31, 2017. Total deposits as of December 31, 2017 were $668 million an increase of $194 million from December 31, 2016.
MainStreet's net income was impacted by two elements during 2017. The first was a $1.885 million provision expense, which was necessary to accommodate the $190 million in loan growth. The second was a $739 thousand expense, which was related to a non-recurring Financial Accounting Standards Board (FASB) adjustment to net deferred tax assets, resulting from a change in the corporate tax rate.
Inasmuch as the FASB adjustment is a non-recurring expense, for the remainder of this release parenthetical references add back the $739 thousand, which is referred to as "adjusted net income."
Net income of $3.9 million ($4.6 million adjusted net income) for December 31, 2017 is up only marginally from December 31, 2016, however adjusted net income is up 19.25%.
Net Interest income of $21.48 million reported for December 31, 2017 improved $2.98 million over net interest income from December 31, 2016. The net interest margin of 3.49% for the year remained stable as compared to 3.52% for 2016.
Non-interest income (no securities gains) for the year is $2.3 million compared to $1.5 million for the same period in 2016. This is a 53% increase for the year. Non-interest expense for the year is $15.7 million compared to $13.9 million for 2016. This is aligned with an increase in staff to support our balance sheet growth.
The efficiency ratio continues to improve at 65.9% for 2017 as compared to 69.5% for 2016.
Net income is $0.85 per common share for the year ended December 31, 2017 (adjusted net income is $1.02 per share) as compared to $0.91 per share for 2016. The share price closed on December 31, 2017 at $17.52 per share. During 2017, there were 1,026 trades for a total of 1,163,326 shares with a dollar value of $19,363,912.
QUOTES: "Our growth is reflective of a strong economy in the Washington, DC metropolitan area," said Jeff W. Dick, Chairman and CEO of MainStreet Bancshares, Inc. and MainStreet Bank. "Our capital raise was very timely to support growth opportunities."
President Chris Brockett added, "As I celebrate the close of my first year with the Bank, I could not have scripted a better outcome. The MainStreet team worked very hard to capture opportunities and we are absolutely thrilled with this year's results."
ABOUT MAINSTREET BANK: MainStreet operates five branches in Herndon, Fairfax, Fairfax City, McLean and Clarendon, and will soon be opening a new branch at 307 East Market Street in Leesburg Virginia. In addition, MainStreet 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 literally "put our bank" in nearly 1,000 businesses in the Metropolitan area.
MainStreet has a full complement of payment system services for third party payment providers. MainStreet has a nationally known and leading market expert on-staff ready to help payment providers create a solution perfect for their needs.
MainStreet 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 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.
Contact: Jeff W. Dick
(703) 481-4567
UNAUDITED CONSOLIDATED BALANCE SHEET INFORMATION |
|||||
(Unaudited) |
|||||
(In thousands, except ratios and per share data) |
|||||
12/31/17 |
9/30/17 |
6/30/17 |
3/31/17 |
12/31/16 |
|
ASSETS |
|||||
Cash and cash equivalents |
|||||
Cash and due from banks |
$ 37,493 |
$ 20,804 |
$ 14,801 |
$ 11,867 |
$ 17,273 |
Federal funds sold |
― |
― |
4,674 |
4,856 |
797 |
Total cash and cash equivalents |
37,493 |
20,804 |
19,475 |
16,723 |
18,070 |
Investment securities available for sale, at fair value |
51,314 |
51,854 |
37,274 |
28,889 |
36,354 |
Investment securities held to maturity, at carrying value |
27,517 |
27,566 |
27,615 |
27,664 |
27,714 |
Restricted equity securities, at cost |
4,241 |
3,898 |
3,895 |
3,892 |
3,426 |
Loans, net of allowance for loan losses |
654,339 |
569,137 |
525,989 |
461,768 |
463,926 |
Premises and equipment, net |
13,965 |
13,997 |
12,008 |
12,132 |
12,309 |
Other real estate owned, net |
― |
― |
135 |
135 |
135 |
Accrued interest and other receivables |
3,849 |
3,076 |
2,737 |
2,363 |
2,261 |
Bank owned life insurance |
13,637 |
13,526 |
13,417 |
13,308 |
10,202 |
Other assets |
1,596 |
1,687 |
1,715 |
1,388 |
1,314 |
Total Assets |
$ 807,951 |
$ 705,545 |
$ 644,260 |
$ 568,262 |
$ 575,711 |
LIABILITIES AND STOCKHOLDERS' EQUITY |
|||||
Liabilities: |
|||||
Non-interest bearing deposits |
$ 171,572 |
$ 155,586 |
$ 139,023 |
$ 114,044 |
$ 106,050 |
Interest bearing DDA deposits |
48,432 |
25,888 |
27,639 |
17,443 |
41,611 |
Savings and NOW deposits |
47,855 |
42,908 |
48,268 |
44,697 |
44,833 |
Money market deposits |
82,828 |
69,425 |
86,009 |
79,704 |
75,670 |
Other time deposits |
316,968 |
302,689 |
237,853 |
207,854 |
205,402 |
Total deposits |
667,655 |
596,496 |
538,792 |
463,742 |
473,566 |
Federal Home Loan Bank advances and other borrowings |
53,780 |
42,604 |
40,167 |
40,179 |
40,192 |
Subordinated Debt |
14,747 |
14,740 |
14,733 |
14,726 |
14,019 |
Other liabilities |
2,968 |
1,647 |
1,807 |
2,011 |
1,539 |
Total Liabilities |
739,150 |
655,487 |
595,499 |
520,658 |
529,316 |
Stockholders' Equity: |
|||||
Common stock |
21,442 |
16,835 |
16,808 |
16,792 |
16,650 |
Capital surplus |
35,693 |
22,336 |
22,229 |
22,126 |
22,152 |
Retained earnings |
11,682 |
10,922 |
9,777 |
8,827 |
7,801 |
Accumulated other comprehensive income (loss) |
(16) |
(35) |
(53) |
(141) |
(208) |
Total Stockholders' Equity |
68,801 |
50,058 |
48,761 |
47,604 |
46,395 |
Total Liabilities and Stockholders' Equity |
$ 807,951 |
$ 705,545 |
$ 644,260 |
$ 568,262 |
$ 575,711 |
Other Financial Highlights |
|||||
Annualized return on average assets |
0.60% |
0.68% |
0.68% |
0.73% |
0.76% |
Annualized return on average equity |
7.44% |
8.22% |
8.26% |
8.74% |
8.75% |
Annualized net interest margin |
3.49% |
3.52% |
3.64% |
3.61% |
3.78% |
Efficiency ratio |
66.90% |
66.95% |
68.47% |
69.38% |
69.47% |
Gross loans to deposits |
98.86% |
96.25% |
98.45% |
100.45% |
98.80% |
Allowance for loan losses to total loans |
0.86% |
0.87% |
0.84% |
0.87% |
0.85% |
Past due loans 30-89 days to total gross loans |
0.03% |
0.03% |
0.37% |
0.00% |
0.05% |
Past due loans 90 days or more to total gross loans |
0.00% |
0.48% |
0.00% |
0.00% |
0.00% |
Non-accrual loans to total gross loans |
0.31% |
0.35% |
0.02% |
0.02% |
0.04% |
Quarterly net loan charge-offs (recoveries) |
$ 3 |
$ 7 |
$ 39 |
$ 111 |
$ 30 |
Book value per share |
$ 12.57 |
$ 11.60 |
$ 11.30 |
$ 11.06 |
$ 10.85 |
Closing stock price |
$ 17.52 |
$ 16.30 |
$ 16.05 |
$ 16.55 |
$ 14.20 |
Regulatory Capital Ratios (Bank Only) |
|||||
Tier 1 risk-based capital ratio |
10.65% |
10.08% |
10.74% |
11.78% |
11.74% |
Common equity tier 1 capital ratio |
10.65% |
10.08% |
10.74% |
11.78% |
11.74% |
Total risk-based capital ratio |
11.43% |
10.88% |
11.52% |
12.57% |
12.53% |
Leverage ratio |
10.42% |
9.43% |
10.32% |
10.69% |
10.95% |
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME INFORMATION |
|||||||||||
(Unaudited) |
|||||||||||
(In thousands, except share and per share data) |
|||||||||||
Year-to-Date |
Three Months Ended |
||||||||||
12/31/17 |
12/31/16 |
12/31/17 |
9/30/17 |
6/30/17 |
3/31/17 |
12/31/16 |
|||||
INTEREST INCOME: |
|||||||||||
Interest and fees on loans |
$ 25,080 |
$ 20,192 |
$ 7,437 |
$ 6,573 |
$ 5,717 |
$ 5,353 |
$ 5,267 |
||||
Interest on investment securities |
1,576 |
1,287 |
343 |
424 |
413 |
396 |
351 |
||||
Interest on federal funds sold |
297 |
93 |
122 |
88 |
47 |
40 |
19 |
||||
Total interest income |
26,953 |
21,572 |
7,902 |
7,085 |
6,177 |
5,789 |
5,637 |
||||
INTEREST EXPENSE: |
|||||||||||
Interest on interest bearing DDA deposits |
194 |
11 |
70 |
40 |
43 |
41 |
11 |
||||
Interest on savings and NOW deposits |
182 |
167 |
42 |
50 |
47 |
43 |
44 |
||||
Interest on money market deposits |
565 |
300 |
151 |
148 |
150 |
116 |
96 |
||||
Interest on other time deposits |
3,114 |
2,327 |
1,109 |
875 |
594 |
536 |
579 |
||||
Interest on Federal Home Loan Bank Advances and other borrowings |
452 |
266 |
141 |
119 |
108 |
84 |
74 |
||||
Interest on Subordinated Debt |
964 |
239 |
243 |
241 |
241 |
― |
|||||
Total interest expense |
5,471 |
3,071 |
1,752 |
1,475 |
1,183 |
1,061 |
804 |
||||
Net interest income |
21,482 |
18,501 |
6,150 |
5,610 |
4,994 |
4,728 |
4,833 |
||||
Provision for loan losses |
1,885 |
645 |
715 |
550 |
425 |
195 |
335 |
||||
Net interest income after provision for loan losses |
19,597 |
17,856 |
5,435 |
5,060 |
4,569 |
4,533 |
4,498 |
||||
OTHER INCOME: |
|||||||||||
Deposit account service charges |
836 |
736 |
221 |
221 |
202 |
192 |
183 |
||||
Bank owned life insurance income |
435 |
202 |
111 |
108 |
110 |
106 |
76 |
||||
Other fee income |
1,006 |
589 |
174 |
237 |
246 |
349 |
194 |
||||
Total other income |
2,277 |
1,527 |
506 |
566 |
558 |
647 |
453 |
||||
OTHER EXPENSES: |
|||||||||||
Salaries and employee benefits |
9,652 |
8,588 |
2,400 |
2,431 |
2,449 |
2,372 |
2,038 |
||||
Furniture and equipment expenses |
1,272 |
1,143 |
347 |
333 |
306 |
286 |
301 |
||||
Advertising and marketing |
264 |
276 |
127 |
80 |
26 |
31 |
56 |
||||
Occupancy expenses |
605 |
734 |
143 |
138 |
153 |
171 |
158 |
||||
Outside services |
663 |
615 |
209 |
212 |
113 |
129 |
202 |
||||
Administrative expenses |
448 |
350 |
145 |
115 |
98 |
90 |
89 |
||||
Other operating expenses |
2,753 |
2,209 |
838 |
657 |
608 |
650 |
595 |
||||
Total other expenses |
15,657 |
13,915 |
4,209 |
3,966 |
3,753 |
3,729 |
3,439 |
||||
INCOME BEFORE INCOME TAXES
|
6,217 |
5,468 |
1,732 |
1,660 |
1,374 |
1,451 |
1,512 |
||||
Income tax expense |
2,335 |
1,593 |
971 |
516 |
427 |
421 |
436 |
||||
NET INCOME |
$ 3,882 |
$ 3,875 |
$ 761 |
$ 1,144 |
$ 947 |
$ 1,030 |
$ 1,076 |
||||
Net income per common share, basic and diluted |
$ 0.85 |
$ 0.91 |
$ 0.14 |
$ 0.27 |
$ 0.22 |
$ 0.24 |
$ 0.25 |
||||
Weighted average number of shares, basic and diluted |
4,551,189 |
4,256,442 |
5,234,392 |
4,315,675 |
4,315,591 |
4,304,852 |
4,260,232 |
||||
SOURCE MainStreet Bancshares, Inc.
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