Fairfax, Virginia – MainStreet Bancshares, Inc. (OTCQX: MNSB), (the “Company”) reports total assets of $1.06 billion at September 30, 2018, as compared to $705.5 million at September 30, 2017, an increase of 50%. The Company remains strongly capitalized.
The Company reported net income of $5.5 million for the nine months ended September 30, 2018, an increase of 77%, as compared to net income of $3.1 million for the nine months ended September 30, 2017. Fully adjusted earnings per share for both common and diluted shares was $0.90 during the first nine months of 2018, compared to $0.69 for fully adjusted common and diluted shares for the same period in 2017. For the nine months ended September 30, 2018 the Company produced a 0.82% return on average assets and 9.46% on average equity, compared to 0.68% and 8.32% consecutively for the third quarter of 2017.
Fully adjusted earnings per share for both common and diluted shares was $0.35 for the third quarter of 2018, compared to $0.25 for both common and diluted shares for the same period in 2017. For the three months ended September 30, 2018 the Company produced a 0.91% return on average assets and 10.25% on average equity, compared to 0.79% and 10.50% consecutively for the third quarter of 2017.
Net interest income, the Company’s primary source of revenue, was $8.0 million for the three months ended September 30, 2018, up 57% from $5.1 million for the three months ended September 30, 2017. The net interest margin was 3.41% for the nine months ended September 30, 2018 as compared to the 3.51% for the nine months ended September 30, 2017.
The $2.6 million in loan loss provisions made thus far in 2018 negatively impacts current earnings. However the strong loan growth that prompted those loss provisions will enhance future earnings. Asset quality remains strong with non-performing assets to total assets at 0.18% as of September 30, 2018, down from 0.29% as of September 30, 2017. Net charge-offs decreased $149 thousand from September 30, 2017 to $8 thousand for the nine months ended September 30, 2018.
As of September 30, 2018, the Company’s fully adjusted tangible book value per share was $14.61, up 26% from $11.60 as of September 30, 2017. According to OTCQX, there were 257 trades during the quarter for a total of 166,580 shares traded or $3,498,381. The closing share price was $20.95, for a market cap of $171.4 million.
QUOTES: “We completed an over-sold private placement during the third quarter and are working diligently to put the proceeds to good use,” says Chris Brockett, President of MainStreet Bancshares, Inc. and MainStreet Bank. “We continue to see quality growth opportunities in the markets we serve.”
“In our most recent private placement stock offering, we committed to use our best efforts to register our common stock with the SEC under the Securities Exchange Act of 1934,” said Jeff W. Dick, Chairman and CEO of MainStreet Bancshares, Inc. and MainStreet Bank. “Our goal is to list our common shares on the Nasdaq Capital Market on or before April 30, 2019. We hope to accomplish the registration and listing before the Russell 2000 index is reconstituted for 2019.”
ABOUT MAINSTREET BANK: MainStreet operates six branches in Herndon, Fairfax, Fairfax City, McLean, Leesburg and Clarendon. 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 “put our bank” in well over 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 market leader and a highly experienced team 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.
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.