Increase in Core Deposits, a High-Quality Loan Portfolio and Strong Capital
FAIRFAX, Va., Oct. 28, 2024 /PRNewswire/ -- MainStreet Bancshares, Inc. (Nasdaq: MNSB & MNSBP), the financial holding company for MainStreet Bank, reported a loss of -$0.04 per common share for the third quarter of 2024 as it dealt decisively with a small number of nonperforming real estate loans. Year-to-date 2024 earnings per common share are $0.60. The Company remains strongly capitalized.
"Our third quarter annualized net interest margin was impacted by $984,000 in accrued interest income that was reversed in relation to loans placed on nonaccrual status," said Alex Vari, Chief Accountant for MainStreet Bank. "This resulted in a quarterly net interest margin of 3.05% and a year-to-date net interest margin of 3.19%."
The Company charged off $1.9 million of nonperforming loans during the quarter and allocated $1 million to provision expense to augment loan growth and ensure the Allowance for Credit Losses remains directionally consistent for the purposes of growth and quality.
In response to the bank's credit quality, Chris Johnston, Chief Credit Officer for MainStreet Bank, expanded, "this quarter showed the underlying strength of a portfolio shaped by a rigorous credit culture. The total principal losses incurred year-to-date 2024 approximates just 0.1% of total loans. Our lending team has demonstrated great resolve in addressing troubled loans, both by working with borrowers and by finding acceptable solutions minimizing the impact on shareholder value. With that, we expect the level of problem loans to improve from this point."
Total deposits expanded to $1.9 billion. The Bank continues to attract healthy amounts of core deposits, reaching $1.47 billion, or 78% of total deposits.
"The DC Metropolitan area is a vibrant market. Our Business Bankers continue to perform, growing noninterest bearing core deposits by $33 million during the quarter," noted Abdul Hersiburane, President of MainStreet Bank. "In an exercise of foresight, we structured noncore deposits with immediate rate repricing or callable options. We have now $233 million of our $423 million noncore deposits available to reprice as rates fall."
In 2021, the Board and management decided to make an investment in technology that would best serve clients requiring Banking-as-a-Service (BaaS). The Avenu BaaS solution officially launched just prior to the end of the third quarter of 2024. The ability to digitally offer banking services in a safe and compliant manner allows the Company to reach new customer deposit segments, diversify revenue streams and generate additional income. The BaaS market is currently underserved, and the opportunities for a well-developed solution are robust. The Avenu business model is in-line with the Company's physical branch-lite strategy.
"Avenu provides a full-stack embedded banking solution that connects our partners and their apps directly and seamlessly to our purpose-built Avenu core," said Jeff W. Dick, Chairman & CEO of MainStreet Bancshares, Inc. and MainStreet Bank. "With Version 1 of Avenu placed in-service, the team is focused on getting the first fintech to general release in early November, and another four fintechs to follow soon thereafter. Just as with any business expansion opportunity, the expenses associated with launching Avenu will impact profitability until we reach break-even. However, after that point Avenu's ability to digitally scale can far surpass bricks and mortar growth and profitability."
Avenu's clients are fintechs, social media solutions, application developers, money movers, and entrepreneurs. They all have one thing in common: They are in search of a reliable partner to help innovate how money moves - solving real-world issues and helping communities thrive. MainStreet Bank is that reliable partner dedicated to providing a best-in-class solution to sustain 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 pandemic outbreaks, 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.
|
UNAUDITED CONSOLIDATED BALANCE SHEET INFORMATION
|
|
(In thousands)
|
|
|
|
September
30, 2024
|
|
|
June 30,
2024
|
|
|
March 31,
2024
|
|
|
December
31, 2023*
|
|
|
September
30, 2023
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks
|
|
$
|
40,955
|
|
|
$
|
41,697
|
|
|
$
|
49,208
|
|
|
$
|
53,581
|
|
|
$
|
44,912
|
|
|
Federal funds sold
|
|
|
191,159
|
|
|
|
49,762
|
|
|
|
75,533
|
|
|
|
60,932
|
|
|
|
76,271
|
|
|
Total cash and cash equivalents
|
|
|
232,114
|
|
|
|
91,459
|
|
|
|
124,741
|
|
|
|
114,513
|
|
|
|
121,183
|
|
|
Investment securities available for sale, at fair value
|
|
|
58,489
|
|
|
|
57,605
|
|
|
|
58,699
|
|
|
|
59,928
|
|
|
|
56,726
|
|
|
Investment securities held to maturity, at amortized cost, net of allowance for credit losses of $0 for all periods
|
|
|
16,016
|
|
|
|
16,036
|
|
|
|
17,251
|
|
|
|
17,275
|
|
|
|
17,565
|
|
|
Restricted equity securities, at amortized cost
|
|
|
26,745
|
|
|
|
26,797
|
|
|
|
23,924
|
|
|
|
24,356
|
|
|
|
20,619
|
|
|
Loans, net of allowance for credit losses of $18,327, $17,098, $16,531, $16,506, and $15,626, respectively
|
|
|
1,775,558
|
|
|
|
1,778,840
|
|
|
|
1,727,110
|
|
|
|
1,705,137
|
|
|
|
1,681,444
|
|
|
Premises and equipment, net
|
|
|
13,571
|
|
|
|
13,787
|
|
|
|
14,081
|
|
|
|
13,944
|
|
|
|
14,275
|
|
|
Accrued interest and other receivables
|
|
|
11,077
|
|
|
|
11,916
|
|
|
|
10,727
|
|
|
|
12,390
|
|
|
|
11,184
|
|
|
Computer software, net of amortization
|
|
|
18,881
|
|
|
|
17,205
|
|
|
|
15,691
|
|
|
|
14,657
|
|
|
|
13,373
|
|
|
Bank owned life insurance
|
|
|
39,203
|
|
|
|
38,901
|
|
|
|
38,609
|
|
|
|
38,318
|
|
|
|
38,035
|
|
|
Other assets
|
|
|
32,945
|
|
|
|
41,200
|
|
|
|
39,182
|
|
|
|
34,914
|
|
|
|
47,087
|
|
|
Total Assets
|
|
$
|
2,224,599
|
|
|
$
|
2,093,746
|
|
|
$
|
2,070,015
|
|
|
$
|
2,035,432
|
|
|
$
|
2,021,491
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing deposits
|
|
$
|
347,575
|
|
|
$
|
314,636
|
|
|
$
|
348,945
|
|
|
$
|
364,606
|
|
|
$
|
394,859
|
|
|
Interest bearing demand deposits
|
|
|
197,527
|
|
|
|
179,513
|
|
|
|
165,331
|
|
|
|
137,128
|
|
|
|
76,423
|
|
|
Savings and NOW deposits
|
|
|
61,893
|
|
|
|
60,867
|
|
|
|
46,036
|
|
|
|
45,878
|
|
|
|
46,550
|
|
|
Money market deposits
|
|
|
451,936
|
|
|
|
476,396
|
|
|
|
446,903
|
|
|
|
442,179
|
|
|
|
461,398
|
|
|
Time deposits
|
|
|
834,738
|
|
|
|
723,951
|
|
|
|
725,520
|
|
|
|
696,336
|
|
|
|
703,960
|
|
|
Total deposits
|
|
|
1,893,669
|
|
|
|
1,755,363
|
|
|
|
1,732,735
|
|
|
|
1,686,127
|
|
|
|
1,683,190
|
|
|
Federal funds purchased
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
15,000
|
|
|
|
—
|
|
|
Subordinated debt
|
|
|
72,940
|
|
|
|
72,841
|
|
|
|
72,741
|
|
|
|
72,642
|
|
|
|
72,543
|
|
|
Other liabilities
|
|
|
31,939
|
|
|
|
40,827
|
|
|
|
41,418
|
|
|
|
40,146
|
|
|
|
52,015
|
|
|
Total Liabilities
|
|
|
1,998,548
|
|
|
|
1,869,031
|
|
|
|
1,846,894
|
|
|
|
1,813,915
|
|
|
|
1,807,748
|
|
|
Stockholders' Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock
|
|
|
27,263
|
|
|
|
27,263
|
|
|
|
27,263
|
|
|
|
27,263
|
|
|
|
27,263
|
|
|
Common stock
|
|
|
29,463
|
|
|
|
29,452
|
|
|
|
29,514
|
|
|
|
29,198
|
|
|
|
29,188
|
|
|
Capital surplus
|
|
|
67,083
|
|
|
|
66,392
|
|
|
|
65,940
|
|
|
|
65,985
|
|
|
|
65,407
|
|
|
Retained earnings
|
|
|
108,616
|
|
|
|
109,651
|
|
|
|
108,334
|
|
|
|
106,549
|
|
|
|
102,694
|
|
|
Accumulated other comprehensive loss
|
|
|
(6,374)
|
|
|
|
(8,043)
|
|
|
|
(7,930)
|
|
|
|
(7,478)
|
|
|
|
(10,809)
|
|
|
Total Stockholders' Equity
|
|
|
226,051
|
|
|
|
224,715
|
|
|
|
223,121
|
|
|
|
221,517
|
|
|
|
213,743
|
|
|
Total Liabilities and Stockholders' Equity
|
|
$
|
2,224,599
|
|
|
$
|
2,093,746
|
|
|
$
|
2,070,015
|
|
|
$
|
2,035,432
|
|
|
$
|
2,021,491
|
|
|
|
*Derived from audited financial statements
|
|
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME INFORMATION
|
|
(In thousands, except share and per share data)
|
|
|
|
Year-to-Date
|
|
|
Three Months Ended
|
|
|
|
September
30, 2024
|
|
|
September
30, 2023
|
|
|
September
30, 2024
|
|
|
June 30,
2024
|
|
|
March 31,
2024
|
|
|
December
31, 2023
|
|
|
September
30, 2023
|
|
|
INTEREST INCOME:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on loans
|
|
$
|
93,852
|
|
|
$
|
85,530
|
|
|
$
|
31,615
|
|
|
$
|
31,655
|
|
|
$
|
30,582
|
|
|
$
|
30,951
|
|
|
$
|
29,822
|
|
|
Interest on investment securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable securities
|
|
|
1,262
|
|
|
|
1,384
|
|
|
|
397
|
|
|
|
430
|
|
|
|
435
|
|
|
|
451
|
|
|
|
459
|
|
|
Tax-exempt securities
|
|
|
832
|
|
|
|
797
|
|
|
|
294
|
|
|
|
268
|
|
|
|
270
|
|
|
|
268
|
|
|
|
268
|
|
|
Interest on federal funds sold
|
|
|
3,550
|
|
|
|
3,528
|
|
|
|
1,285
|
|
|
|
1,083
|
|
|
|
1,182
|
|
|
|
1,510
|
|
|
|
1,217
|
|
|
Total interest income
|
|
|
99,496
|
|
|
|
91,239
|
|
|
|
33,591
|
|
|
|
33,436
|
|
|
|
32,469
|
|
|
|
33,180
|
|
|
|
31,766
|
|
|
INTEREST EXPENSE:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on interest bearing demand deposits
|
|
|
6,049
|
|
|
|
761
|
|
|
|
2,117
|
|
|
|
2,118
|
|
|
|
1,814
|
|
|
|
1,027
|
|
|
|
216
|
|
|
Interest on savings and NOW deposits
|
|
|
553
|
|
|
|
400
|
|
|
|
206
|
|
|
|
190
|
|
|
|
157
|
|
|
|
146
|
|
|
|
145
|
|
|
Interest on money market deposits
|
|
|
15,911
|
|
|
|
8,091
|
|
|
|
5,277
|
|
|
|
5,542
|
|
|
|
5,092
|
|
|
|
5,538
|
|
|
|
4,068
|
|
|
Interest on time deposits
|
|
|
27,361
|
|
|
|
18,719
|
|
|
|
9,543
|
|
|
|
9,010
|
|
|
|
8,808
|
|
|
|
8,187
|
|
|
|
7,516
|
|
|
Interest on federal funds purchased
|
|
|
575
|
|
|
|
274
|
|
|
|
277
|
|
|
|
191
|
|
|
|
107
|
|
|
|
25
|
|
|
|
35
|
|
|
Interest on Federal Home Loan Bank advances
|
|
|
46
|
|
|
|
1,105
|
|
|
|
—
|
|
|
|
—
|
|
|
|
46
|
|
|
|
118
|
|
|
|
186
|
|
|
Interest on subordinated debt
|
|
|
2,468
|
|
|
|
2,460
|
|
|
|
828
|
|
|
|
820
|
|
|
|
820
|
|
|
|
828
|
|
|
|
828
|
|
|
Total interest expense
|
|
|
52,963
|
|
|
|
31,810
|
|
|
|
18,248
|
|
|
|
17,871
|
|
|
|
16,844
|
|
|
|
15,869
|
|
|
|
12,994
|
|
|
Net interest income
|
|
|
46,533
|
|
|
|
59,429
|
|
|
|
15,343
|
|
|
|
15,565
|
|
|
|
15,625
|
|
|
|
17,311
|
|
|
|
18,772
|
|
|
Provision for (recovery of) credit losses
|
|
|
3,356
|
|
|
|
1,176
|
|
|
|
2,913
|
|
|
|
638
|
|
|
|
(195)
|
|
|
|
466
|
|
|
|
255
|
|
|
Net interest income after provision for (recovery of) credit losses
|
|
|
43,177
|
|
|
|
58,253
|
|
|
|
12,430
|
|
|
|
14,927
|
|
|
|
15,820
|
|
|
|
16,845
|
|
|
|
18,517
|
|
|
NON-INTEREST INCOME:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposit account service charges
|
|
|
1,516
|
|
|
|
1,639
|
|
|
|
557
|
|
|
|
490
|
|
|
|
469
|
|
|
|
510
|
|
|
|
514
|
|
|
Bank owned life insurance income
|
|
|
885
|
|
|
|
786
|
|
|
|
302
|
|
|
|
291
|
|
|
|
292
|
|
|
|
283
|
|
|
|
272
|
|
|
Net loss on securities called or matured
|
|
|
(48)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(48)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Other non-interest income (loss)
|
|
|
93
|
|
|
|
158
|
|
|
|
27
|
|
|
|
31
|
|
|
|
35
|
|
|
|
(34)
|
|
|
|
105
|
|
|
Total non-interest income
|
|
|
2,446
|
|
|
|
2,583
|
|
|
|
886
|
|
|
|
764
|
|
|
|
796
|
|
|
|
759
|
|
|
|
891
|
|
|
NON-INTEREST EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits
|
|
|
22,222
|
|
|
|
21,139
|
|
|
|
7,250
|
|
|
|
7,484
|
|
|
|
7,488
|
|
|
|
7,129
|
|
|
|
6,924
|
|
|
Furniture and equipment expenses
|
|
|
2,806
|
|
|
|
1,983
|
|
|
|
931
|
|
|
|
940
|
|
|
|
935
|
|
|
|
804
|
|
|
|
713
|
|
|
Advertising and marketing
|
|
|
1,599
|
|
|
|
2,072
|
|
|
|
579
|
|
|
|
566
|
|
|
|
454
|
|
|
|
271
|
|
|
|
577
|
|
|
Occupancy expenses
|
|
|
1,257
|
|
|
|
1,287
|
|
|
|
407
|
|
|
|
415
|
|
|
|
435
|
|
|
|
397
|
|
|
|
375
|
|
|
Outside services
|
|
|
2,458
|
|
|
|
1,691
|
|
|
|
845
|
|
|
|
839
|
|
|
|
774
|
|
|
|
352
|
|
|
|
697
|
|
|
Administrative expenses
|
|
|
686
|
|
|
|
703
|
|
|
|
215
|
|
|
|
229
|
|
|
|
242
|
|
|
|
219
|
|
|
|
277
|
|
|
Other operating expenses
|
|
|
7,508
|
|
|
|
5,404
|
|
|
|
2,992
|
|
|
|
2,362
|
|
|
|
2,153
|
|
|
|
2,166
|
|
|
|
1,988
|
|
|
Total non-interest expenses
|
|
|
38,536
|
|
|
|
34,279
|
|
|
|
13,219
|
|
|
|
12,835
|
|
|
|
12,481
|
|
|
|
11,338
|
|
|
|
11,551
|
|
|
Income before income tax expense (benefit)
|
|
|
7,087
|
|
|
|
26,557
|
|
|
|
97
|
|
|
|
2,856
|
|
|
|
4,135
|
|
|
|
6,266
|
|
|
|
7,857
|
|
|
Income tax expense (benefit)
|
|
|
900
|
|
|
|
5,119
|
|
|
|
(168)
|
|
|
|
238
|
|
|
|
830
|
|
|
|
1,120
|
|
|
|
1,516
|
|
|
Net income
|
|
|
6,187
|
|
|
|
21,438
|
|
|
|
265
|
|
|
|
2,618
|
|
|
|
3,305
|
|
|
|
5,146
|
|
|
|
6,341
|
|
|
Preferred stock dividends
|
|
|
1,617
|
|
|
|
1,617
|
|
|
|
539
|
|
|
|
539
|
|
|
|
539
|
|
|
|
539
|
|
|
|
539
|
|
|
Net income (loss) available to common shareholders
|
|
$
|
4,570
|
|
|
$
|
19,821
|
|
|
$
|
(274)
|
|
|
$
|
2,079
|
|
|
$
|
2,766
|
|
|
$
|
4,607
|
|
|
$
|
5,802
|
|
|
Earnings (loss) per common share, basic and diluted
|
|
$
|
0.60
|
|
|
$
|
2.64
|
|
|
$
|
(0.04)
|
|
|
$
|
0.27
|
|
|
$
|
0.36
|
|
|
$
|
0.61
|
|
|
$
|
0.77
|
|
|
Weighted average number of common shares, basic and diluted
|
|
|
7,607,431
|
|
|
|
7,521,426
|
|
|
|
7,601,925
|
|
|
|
7,608,389
|
|
|
|
7,611,990
|
|
|
|
7,527,327
|
|
|
|
7,524,332
|
|
|
UNAUDITED LOAN, DEPOSIT AND BORROWING DETAIL
|
|
(In thousands)
|
|
|
|
September 30, 2024
|
|
|
June 30, 2024
|
|
|
September 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
|
|
$
|
373,486
|
|
|
|
20.8
|
%
|
|
$
|
410,698
|
|
|
|
22.8
|
%
|
|
$
|
426,698
|
|
|
|
25.1
|
%
|
|
|
-9.1
|
%
|
|
|
-12.5
|
%
|
|
Residential real estate loans
|
|
|
446,109
|
|
|
|
24.8
|
%
|
|
|
449,700
|
|
|
|
25.0
|
%
|
|
|
462,935
|
|
|
|
27.2
|
%
|
|
|
-0.8
|
%
|
|
|
-3.6
|
%
|
|
Commercial real estate loans
|
|
|
871,280
|
|
|
|
48.4
|
%
|
|
|
845,030
|
|
|
|
46.9
|
%
|
|
|
734,615
|
|
|
|
43.1
|
%
|
|
|
3.1
|
%
|
|
|
18.6
|
%
|
|
Commercial and industrial loans
|
|
|
106,249
|
|
|
|
5.9
|
%
|
|
|
93,559
|
|
|
|
5.2
|
%
|
|
|
73,855
|
|
|
|
4.3
|
%
|
|
|
13.6
|
%
|
|
|
43.9
|
%
|
|
Consumer loans
|
|
|
1,977
|
|
|
|
0.1
|
%
|
|
|
2,232
|
|
|
|
0.1
|
%
|
|
|
4,598
|
|
|
|
0.3
|
%
|
|
|
-11.4
|
%
|
|
|
-57.0
|
%
|
|
Total Gross Loans
|
|
$
|
1,799,101
|
|
|
|
100.0
|
%
|
|
$
|
1,801,219
|
|
|
|
100.0
|
%
|
|
$
|
1,702,701
|
|
|
|
100.0
|
%
|
|
|
-0.1
|
%
|
|
|
5.7
|
%
|
|
Less: Allowance for credit losses
|
|
|
(18,327)
|
|
|
|
|
|
|
|
(17,098)
|
|
|
|
|
|
|
|
(15,626)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net deferred loan fees
|
|
|
(5,216)
|
|
|
|
|
|
|
|
(5,281)
|
|
|
|
|
|
|
|
(5,631)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Loans
|
|
$
|
1,775,558
|
|
|
|
|
|
|
$
|
1,778,840
|
|
|
|
|
|
|
$
|
1,681,444
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DEPOSITS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing deposits
|
|
$
|
347,575
|
|
|
|
18.4
|
%
|
|
$
|
314,636
|
|
|
|
17.9
|
%
|
|
$
|
394,859
|
|
|
|
23.5
|
%
|
|
|
10.5
|
%
|
|
|
-12.0
|
%
|
|
Interest-bearing deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits
|
|
|
197,527
|
|
|
|
10.4
|
%
|
|
|
179,513
|
|
|
|
10.2
|
%
|
|
|
76,423
|
|
|
|
4.5
|
%
|
|
|
10.0
|
%
|
|
|
158.5
|
%
|
|
Savings and NOW deposits
|
|
|
61,893
|
|
|
|
3.3
|
%
|
|
|
60,867
|
|
|
|
3.5
|
%
|
|
|
46,550
|
|
|
|
2.8
|
%
|
|
|
1.7
|
%
|
|
|
33.0
|
%
|
|
Money market deposits
|
|
|
451,936
|
|
|
|
23.9
|
%
|
|
|
476,396
|
|
|
|
27.1
|
%
|
|
|
461,398
|
|
|
|
27.4
|
%
|
|
|
-5.1
|
%
|
|
|
-2.1
|
%
|
|
Certificates of deposit $250,000 or more
|
|
|
532,201
|
|
|
|
28.0
|
%
|
|
|
473,827
|
|
|
|
27.0
|
%
|
|
|
432,440
|
|
|
|
25.7
|
%
|
|
|
12.3
|
%
|
|
|
23.1
|
%
|
|
Certificates of deposit less than $250,000
|
|
|
302,537
|
|
|
|
16.0
|
%
|
|
|
250,124
|
|
|
|
14.3
|
%
|
|
|
271,520
|
|
|
|
16.1
|
%
|
|
|
21.0
|
%
|
|
|
11.4
|
%
|
|
Total Deposits
|
|
$
|
1,893,669
|
|
|
|
100.0
|
%
|
|
$
|
1,755,363
|
|
|
|
100.0
|
%
|
|
$
|
1,683,190
|
|
|
|
100.0
|
%
|
|
|
7.9
|
%
|
|
|
12.5
|
%
|
|
BORROWINGS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subordinated debt
|
|
|
72,940
|
|
|
|
100.0
|
%
|
|
|
72,841
|
|
|
|
100.0
|
%
|
|
|
72,543
|
|
|
|
100.0
|
%
|
|
|
0.1
|
%
|
|
|
0.5
|
%
|
|
Total Borrowings
|
|
$
|
72,940
|
|
|
|
100.0
|
%
|
|
$
|
72,841
|
|
|
|
100.0
|
%
|
|
$
|
72,543
|
|
|
|
100.0
|
%
|
|
|
0.1
|
%
|
|
|
0.5
|
%
|
|
Total Deposits and Borrowings
|
|
$
|
1,966,609
|
|
|
|
|
|
|
$
|
1,828,204
|
|
|
|
|
|
|
$
|
1,755,733
|
|
|
|
|
|
|
|
7.6
|
%
|
|
|
12.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core customer funding sources (1)
|
|
$
|
1,471,350
|
|
|
|
74.8
|
%
|
|
$
|
1,376,991
|
|
|
|
75.3
|
%
|
|
$
|
1,144,513
|
|
|
|
65.2
|
%
|
|
|
6.9
|
%
|
|
|
28.6
|
%
|
|
Brokered and listing service sources (2)
|
|
|
422,319
|
|
|
|
21.5
|
%
|
|
|
378,372
|
|
|
|
20.7
|
%
|
|
|
538,677
|
|
|
|
30.7
|
%
|
|
|
11.6
|
%
|
|
|
-21.6
|
%
|
|
Subordinated debt (3)
|
|
|
72,940
|
|
|
|
3.7
|
%
|
|
|
72,841
|
|
|
|
4.0
|
%
|
|
|
72,543
|
|
|
|
4.1
|
%
|
|
|
0.1
|
%
|
|
|
0.5
|
%
|
|
Total Funding Sources
|
|
$
|
1,966,609
|
|
|
|
100.0
|
%
|
|
$
|
1,828,204
|
|
|
|
100.0
|
%
|
|
$
|
1,755,733
|
|
|
|
100.0
|
%
|
|
|
7.6
|
%
|
|
|
12.0
|
%
|
|
|
|
(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 $278.6 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 September 30, 2024.
|
|
(3)
|
Subordinated debt obligation qualifies as Tier 2 capital at the holding company and Tier 1 capital at the Bank.
|
|
UNAUDITED AVERAGE BALANCE SHEETS, INTEREST AND RATES
|
|
(In thousands)
|
|
|
|
For the three months ended September
30, 2024
|
|
|
For the three months ended September
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)
|
|
$
|
1,807,882
|
|
|
$
|
31,615
|
|
|
|
6.94
|
%
|
|
$
|
1,665,474
|
|
|
$
|
29,822
|
|
|
|
7.10
|
%
|
|
Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
|
54,523
|
|
|
|
397
|
|
|
|
2.89
|
%
|
|
|
57,981
|
|
|
|
459
|
|
|
|
3.14
|
%
|
|
Tax-exempt
|
|
|
35,881
|
|
|
|
372
|
|
|
|
4.11
|
%
|
|
|
37,812
|
|
|
|
339
|
|
|
|
3.56
|
%
|
|
Federal funds and interest-bearing deposits
|
|
|
104,459
|
|
|
|
1,285
|
|
|
|
4.88
|
%
|
|
|
94,808
|
|
|
|
1,217
|
|
|
|
5.09
|
%
|
|
Total interest-earning assets
|
|
$
|
2,002,745
|
|
|
$
|
33,669
|
|
|
|
6.67
|
%
|
|
$
|
1,856,075
|
|
|
$
|
31,837
|
|
|
|
6.81
|
%
|
|
Other assets
|
|
|
123,383
|
|
|
|
|
|
|
|
|
|
|
|
73,415
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
2,126,128
|
|
|
|
|
|
|
|
|
|
|
$
|
1,929,490
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand deposits
|
|
$
|
173,996
|
|
|
$
|
2,117
|
|
|
|
4.83
|
%
|
|
$
|
77,047
|
|
|
$
|
216
|
|
|
|
1.11
|
%
|
|
Savings and NOW deposits
|
|
|
61,259
|
|
|
|
206
|
|
|
|
1.33
|
%
|
|
|
48,594
|
|
|
|
145
|
|
|
|
1.18
|
%
|
|
Money market deposits
|
|
|
445,730
|
|
|
|
5,277
|
|
|
|
4.70
|
%
|
|
|
413,710
|
|
|
|
4,068
|
|
|
|
3.90
|
%
|
|
Time deposits
|
|
|
759,247
|
|
|
|
9,543
|
|
|
|
4.99
|
%
|
|
|
700,405
|
|
|
|
7,516
|
|
|
|
4.26
|
%
|
|
Total interest-bearing deposits
|
|
$
|
1,440,232
|
|
|
$
|
17,143
|
|
|
|
4.72
|
%
|
|
$
|
1,239,756
|
|
|
$
|
11,945
|
|
|
|
3.82
|
%
|
|
Federal funds purchased
|
|
|
19,001
|
|
|
|
277
|
|
|
|
5.78
|
%
|
|
|
2,501
|
|
|
|
35
|
|
|
|
5.55
|
%
|
|
FHLB advances
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
13,478
|
|
|
|
186
|
|
|
|
5.48
|
%
|
|
Subordinated debt
|
|
|
72,901
|
|
|
|
828
|
|
|
|
4.51
|
%
|
|
|
72,504
|
|
|
|
828
|
|
|
|
4.53
|
%
|
|
Total interest-bearing liabilities
|
|
$
|
1,532,134
|
|
|
$
|
18,248
|
|
|
|
4.73
|
%
|
|
$
|
1,328,239
|
|
|
$
|
12,994
|
|
|
|
3.88
|
%
|
|
Demand deposits and other liabilities
|
|
|
368,349
|
|
|
|
|
|
|
|
|
|
|
|
388,004
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
|
$
|
1,900,483
|
|
|
|
|
|
|
|
|
|
|
$
|
1,716,243
|
|
|
|
|
|
|
|
|
|
|
Stockholders' Equity
|
|
|
225,645
|
|
|
|
|
|
|
|
|
|
|
|
213,247
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities and Stockholders' Equity
|
|
$
|
2,126,128
|
|
|
|
|
|
|
|
|
|
|
$
|
1,929,490
|
|
|
|
|
|
|
|
|
|
|
Interest Rate Spread
|
|
|
|
|
|
|
|
|
|
|
1.94
|
%
|
|
|
|
|
|
|
|
|
|
|
2.93
|
%
|
|
Net Interest Income
|
|
|
|
|
|
$
|
15,421
|
|
|
|
|
|
|
|
|
|
|
$
|
18,843
|
|
|
|
|
|
|
Net Interest Margin
|
|
|
|
|
|
|
|
|
|
|
3.05
|
%
|
|
|
|
|
|
|
|
|
|
|
4.03
|
%
|
|
|
|
(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
|
|
UNAUDITED AVERAGE BALANCE SHEETS, INTEREST AND RATES
|
|
(In thousands)
|
|
|
|
For the nine months ended September 30,
2024
|
|
|
For the nine months ended September 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)
|
|
$
|
1,773,050
|
|
|
$
|
93,852
|
|
|
|
7.08
|
%
|
|
$
|
1,640,460
|
|
|
$
|
85,530
|
|
|
|
6.97
|
%
|
|
Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
|
55,478
|
|
|
|
1,262
|
|
|
|
3.04
|
%
|
|
|
60,640
|
|
|
|
1,384
|
|
|
|
3.05
|
%
|
|
Tax-exempt
|
|
|
36,670
|
|
|
|
1,053
|
|
|
|
3.84
|
%
|
|
|
37,876
|
|
|
|
1,009
|
|
|
|
3.56
|
%
|
|
Federal funds and interest-bearing deposits
|
|
|
93,853
|
|
|
|
3,550
|
|
|
|
5.06
|
%
|
|
|
99,004
|
|
|
|
3,528
|
|
|
|
4.76
|
%
|
|
Total interest-earning assets
|
|
$
|
1,959,051
|
|
|
$
|
99,717
|
|
|
|
6.81
|
%
|
|
$
|
1,837,980
|
|
|
$
|
91,451
|
|
|
|
6.65
|
%
|
|
Other assets
|
|
|
125,808
|
|
|
|
|
|
|
|
|
|
|
|
71,452
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
2,084,859
|
|
|
|
|
|
|
|
|
|
|
$
|
1,909,432
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand deposits
|
|
$
|
164,192
|
|
|
$
|
6,049
|
|
|
|
4.93
|
%
|
|
$
|
78,018
|
|
|
$
|
761
|
|
|
|
1.30
|
%
|
|
Savings and NOW deposits
|
|
|
51,119
|
|
|
|
553
|
|
|
|
1.45
|
%
|
|
|
50,382
|
|
|
|
400
|
|
|
|
1.06
|
%
|
|
Money market deposit
|
|
|
447,668
|
|
|
|
15,911
|
|
|
|
4.75
|
%
|
|
|
328,037
|
|
|
|
8,091
|
|
|
|
3.30
|
%
|
|
Time deposits
|
|
|
728,459
|
|
|
|
27,361
|
|
|
|
5.02
|
%
|
|
|
699,377
|
|
|
|
18,719
|
|
|
|
3.58
|
%
|
|
Total interest-bearing deposits
|
|
$
|
1,391,438
|
|
|
$
|
49,874
|
|
|
|
4.79
|
%
|
|
$
|
1,155,814
|
|
|
$
|
27,971
|
|
|
|
3.24
|
%
|
|
Federal funds purchased
|
|
|
13,279
|
|
|
|
575
|
|
|
|
5.79
|
%
|
|
|
6,878
|
|
|
|
274
|
|
|
|
5.33
|
%
|
|
FHLB advances
|
|
|
1,095
|
|
|
|
46
|
|
|
|
5.62
|
%
|
|
|
30,531
|
|
|
|
1,105
|
|
|
|
4.84
|
%
|
|
Subordinated debt
|
|
|
72,802
|
|
|
|
2,468
|
|
|
|
4.53
|
%
|
|
|
72,405
|
|
|
|
2,460
|
|
|
|
4.54
|
%
|
|
Total interest-bearing liabilities
|
|
$
|
1,478,614
|
|
|
$
|
52,963
|
|
|
|
4.79
|
%
|
|
$
|
1,265,628
|
|
|
$
|
31,810
|
|
|
|
3.36
|
%
|
|
Demand deposits and other liabilities
|
|
|
382,591
|
|
|
|
|
|
|
|
|
|
|
|
436,157
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
|
$
|
1,861,205
|
|
|
|
|
|
|
|
|
|
|
$
|
1,701,785
|
|
|
|
|
|
|
|
|
|
|
Stockholders' Equity
|
|
|
223,654
|
|
|
|
|
|
|
|
|
|
|
|
207,647
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities and Stockholders' Equity
|
|
$
|
2,084,859
|
|
|
|
|
|
|
|
|
|
|
$
|
1,909,432
|
|
|
|
|
|
|
|
|
|
|
Interest Rate Spread
|
|
|
|
|
|
|
|
|
|
|
2.02
|
%
|
|
|
|
|
|
|
|
|
|
|
3.30
|
%
|
|
Net Interest Income
|
|
|
|
|
|
$
|
46,754
|
|
|
|
|
|
|
|
|
|
|
$
|
59,641
|
|
|
|
|
|
|
Net Interest Margin
|
|
|
|
|
|
|
|
|
|
|
3.19
|
%
|
|
|
|
|
|
|
|
|
|
|
4.34
|
%
|
|
|
|
(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
|
|
UNAUDITED SUMMARY FINANCIAL DATA
|
|
(Dollars in thousands except share and per share data)
|
|
|
|
At or For the Three Months Ended
|
|
|
At or For the Nine Months Ended
|
|
|
|
September 30,
|
|
|
September 30,
|
|
|
|
2024
|
|
|
2023
|
|
|
2024
|
|
|
2023
|
|
|
Per share Data and Shares Outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per common share (basic and diluted)
|
|
$
|
(0.04)
|
|
|
$
|
0.77
|
|
|
$
|
0.60
|
|
|
$
|
2.64
|
|
|
Book value per common share
|
|
$
|
26.15
|
|
|
$
|
24.78
|
|
|
$
|
26.15
|
|
|
$
|
24.78
|
|
|
Tangible book value per common share(2)
|
|
$
|
23.66
|
|
|
$
|
23.00
|
|
|
$
|
23.66
|
|
|
$
|
23.00
|
|
|
Weighted average common shares (basic and diluted)
|
|
|
7,601,925
|
|
|
|
7,524,332
|
|
|
|
7,607,431
|
|
|
|
7,521,426
|
|
|
Common shares outstanding at end of period
|
|
|
7,602,783
|
|
|
|
7,524,887
|
|
|
|
7,602,783
|
|
|
|
7,524,887
|
|
|
Performance Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets (annualized)
|
|
|
0.05
|
%
|
|
|
1.30
|
%
|
|
|
0.40
|
%
|
|
|
1.50
|
%
|
|
Return on average equity (annualized)
|
|
|
0.47
|
%
|
|
|
11.80
|
%
|
|
|
3.70
|
%
|
|
|
13.80
|
%
|
|
Return on average common equity (annualized)
|
|
|
0.53
|
%
|
|
|
12.38
|
%
|
|
|
4.21
|
%
|
|
|
14.73
|
%
|
|
Yield on earning assets (FTE) (2) (annualized)
|
|
|
6.67
|
%
|
|
|
6.81
|
%
|
|
|
6.81
|
%
|
|
|
6.65
|
%
|
|
Cost of interest bearing liabilities (annualized)
|
|
|
4.73
|
%
|
|
|
3.88
|
%
|
|
|
4.79
|
%
|
|
|
3.36
|
%
|
|
Net interest spread (FTE)(2)
|
|
|
1.94
|
%
|
|
|
2.93
|
%
|
|
|
2.02
|
%
|
|
|
3.30
|
%
|
|
Net interest margin (FTE)(2) (annualized)
|
|
|
3.05
|
%
|
|
|
4.03
|
%
|
|
|
3.19
|
%
|
|
|
4.34
|
%
|
|
Non-interest income as a percentage of average assets (annualized)
|
|
|
0.17
|
%
|
|
|
0.18
|
%
|
|
|
0.16
|
%
|
|
|
0.18
|
%
|
|
Non-interest expense to average assets (annualized)
|
|
|
2.47
|
%
|
|
|
2.38
|
%
|
|
|
2.47
|
%
|
|
|
2.39
|
%
|
|
Efficiency ratio(3)
|
|
|
81.45
|
%
|
|
|
58.74
|
%
|
|
|
78.68
|
%
|
|
|
54.94
|
%
|
|
Asset Quality
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses (ACL)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning balance, ACL - loans
|
|
$
|
17,098
|
|
|
$
|
16,047
|
|
|
$
|
16,506
|
|
|
$
|
14,114
|
|
|
Add: recoveries
|
|
|
11
|
|
|
|
1
|
|
|
|
19
|
|
|
|
14
|
|
|
Less: charge-offs
|
|
|
(1,907)
|
|
|
|
(324)
|
|
|
|
(2,418)
|
|
|
|
(331)
|
|
|
Add: provision for (recovery of) credit losses - loans
|
|
|
3,125
|
|
|
|
(98)
|
|
|
|
4,220
|
|
|
|
934
|
|
|
Add: current expected credit losses, nonrecurring adoption
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
895
|
|
|
Ending balance, ACL - loans
|
|
$
|
18,327
|
|
|
$
|
15,626
|
|
|
$
|
18,327
|
|
|
$
|
15,626
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning balance, reserve for unfunded commitment (RUC)
|
|
$
|
357
|
|
|
$
|
1,199
|
|
|
$
|
1,009
|
|
|
$
|
—
|
|
|
Add: current expected credit losses, nonrecurring adoption
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,310
|
|
|
Add: provision for (recovery of) unfunded commitments, net
|
|
|
(212)
|
|
|
|
353
|
|
|
|
(864)
|
|
|
|
242
|
|
|
Ending balance, RUC
|
|
$
|
145
|
|
|
$
|
1,552
|
|
|
$
|
145
|
|
|
$
|
1,552
|
|
|
Total allowance for credit losses
|
|
$
|
18,472
|
|
|
$
|
17,178
|
|
|
$
|
18,472
|
|
|
$
|
17,178
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses on loans to total gross loans
|
|
|
1.02
|
%
|
|
|
0.92
|
%
|
|
|
1.02
|
%
|
|
|
0.92
|
%
|
|
Allowance for credit losses to total gross loans
|
|
|
1.03
|
%
|
|
|
1.01
|
%
|
|
|
1.03
|
%
|
|
|
1.01
|
%
|
|
Allowance for credit losses on loans to non-performing loans
|
|
|
64.84
|
%
|
|
|
48.08X
|
|
|
|
64.84
|
%
|
|
|
48.08X
|
|
|
Net charge-offs (recoveries) to average gross loans (annualized)
|
|
|
0.42
|
%
|
|
|
0.08
|
%
|
|
|
0.18
|
%
|
|
|
0.02
|
%
|
|
Concentration Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate loans to total capital (4)
|
|
|
360.26
|
%
|
|
|
372.48
|
%
|
|
|
360.26
|
%
|
|
|
372.48
|
%
|
|
Construction loans to total capital (5)
|
|
|
118.15
|
%
|
|
|
138.79
|
%
|
|
|
118.15
|
%
|
|
|
138.79
|
%
|
|
Non-performing Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans 30-89 days past due and accruing to total gross loans
|
|
|
0.61
|
%
|
|
|
0.05
|
%
|
|
|
0.61
|
%
|
|
|
0.05
|
%
|
|
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
|
|
|
1.57
|
%
|
|
|
0.02
|
%
|
|
|
1.57
|
%
|
|
|
0.02
|
%
|
|
Other real estate owned
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Non-performing loans
|
|
$
|
28,264
|
|
|
$
|
325
|
|
|
$
|
28,264
|
|
|
$
|
325
|
|
|
Non-performing assets to total assets
|
|
|
1.27
|
%
|
|
|
0.02
|
%
|
|
|
1.27
|
%
|
|
|
0.02
|
%
|
|
Regulatory Capital Ratios (Bank only) (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total risk-based capital ratio
|
|
|
16.96
|
%
|
|
|
16.79
|
%
|
|
|
16.96
|
%
|
|
|
16.79
|
%
|
|
Tier 1 risk-based capital ratio
|
|
|
15.97
|
%
|
|
|
15.83
|
%
|
|
|
15.97
|
%
|
|
|
15.83
|
%
|
|
Leverage ratio
|
|
|
13.98
|
%
|
|
|
14.81
|
%
|
|
|
13.98
|
%
|
|
|
14.81
|
%
|
|
Common equity tier 1 ratio
|
|
|
15.97
|
%
|
|
|
15.83
|
%
|
|
|
15.97
|
%
|
|
|
15.83
|
%
|
|
Other information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Closing stock price
|
|
$
|
18.45
|
|
|
$
|
20.54
|
|
|
$
|
18.45
|
|
|
$
|
20.54
|
|
|
Tangible equity / tangible assets (2)
|
|
|
9.39
|
%
|
|
|
9.98
|
%
|
|
|
9.39
|
%
|
|
|
9.98
|
%
|
|
Average tangible equity / average tangible assets (2)
|
|
|
9.86
|
%
|
|
|
10.46
|
%
|
|
|
10.02
|
%
|
|
|
10.34
|
%
|
|
Number of full time equivalent employees
|
|
|
201
|
|
|
|
185
|
|
|
|
201
|
|
|
|
185
|
|
|
Number of full service branch offices
|
|
|
6
|
|
|
|
6
|
|
|
|
6
|
|
|
|
6
|
|
|
|
|
(1)
|
Regulatory capital ratios as of September 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
|
|
Unaudited Reconciliation of Certain Non-GAAP Financial Measures
|
|
(Dollars In thousands)
|
|
|
|
For the three months
ended September 30,
|
|
|
For the nine months ended
September 30,
|
|
|
|
2024
|
|
|
2023
|
|
|
2024
|
|
|
2023
|
|
|
Net interest margin (FTE)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (GAAP)
|
|
$
|
15,343
|
|
|
$
|
18,772
|
|
|
$
|
46,533
|
|
|
$
|
59,429
|
|
|
FTE adjustment on tax-exempt securities
|
|
|
78
|
|
|
|
71
|
|
|
|
221
|
|
|
|
212
|
|
|
Net interest income (FTE) (non-GAAP)
|
|
|
15,421
|
|
|
|
18,843
|
|
|
|
46,754
|
|
|
|
59,641
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average interest earning assets
|
|
|
2,002,745
|
|
|
|
1,856,075
|
|
|
|
1,959,051
|
|
|
|
1,837,980
|
|
|
Net interest margin (GAAP)
|
|
|
3.04
|
%
|
|
|
4.01
|
%
|
|
|
3.18
|
%
|
|
|
4.32
|
%
|
|
Net interest margin (FTE) (non-GAAP)
|
|
|
3.05
|
%
|
|
|
4.03
|
%
|
|
|
3.19
|
%
|
|
|
4.34
|
%
|
|
|
For the three months
ended September 30,
|
|
|
For the nine months ended
September 30,
|
|
|
|
2024
|
|
|
2023
|
|
|
2024
|
|
|
2023
|
|
|
Yield on earning assets (FTE)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest income (GAAP)
|
|
$
|
33,591
|
|
|
$
|
31,766
|
|
|
$
|
99,496
|
|
|
$
|
91,239
|
|
|
FTE adjustment on tax-exempt securities
|
|
|
78
|
|
|
|
71
|
|
|
|
221
|
|
|
|
212
|
|
|
Total interest income (FTE) (non-GAAP)
|
|
|
33,669
|
|
|
|
31,837
|
|
|
|
99,717
|
|
|
|
91,451
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average interest earning assets
|
|
|
2,002,745
|
|
|
|
1,856,075
|
|
|
|
1,959,051
|
|
|
|
1,837,980
|
|
|
Yield on earning assets (GAAP)
|
|
|
6.65
|
%
|
|
|
6.79
|
%
|
|
|
6.79
|
%
|
|
|
6.64
|
%
|
|
Yield on earning assets (FTE) (non-GAAP)
|
|
|
6.67
|
%
|
|
|
6.81
|
%
|
|
|
6.81
|
%
|
|
|
6.65
|
%
|
|
|
For the three months
ended September 30,
|
|
|
For the nine months ended
September 30,
|
|
|
|
2024
|
|
|
2023
|
|
|
2024
|
|
|
2023
|
|
|
Net interest spread (FTE)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yield on earning assets (GAAP)
|
|
|
6.65
|
%
|
|
|
6.79
|
%
|
|
6.79
|
%
|
|
6.64
|
%
|
|
Yield on earning assets (FTE) (non-GAAP)
|
|
|
6.67
|
%
|
|
|
6.81
|
%
|
|
6.81
|
%
|
|
6.65
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yield on interest-bearing liabilities (GAAP)
|
|
|
4.73
|
%
|
|
|
3.88
|
%
|
|
4.79
|
%
|
|
|
3.36
|
%
|
|
Net interest spread (GAAP)
|
|
|
1.92
|
%
|
|
|
2.91
|
%
|
|
2.00
|
%
|
|
3.29
|
%
|
|
Net interest spread (FTE) (non-GAAP)
|
|
|
1.94
|
%
|
|
|
2.93
|
%
|
|
|
2.02
|
%
|
|
3.30
|
%
|
|
|
As of September 30,
|
|
|
As of September 30,
|
|
|
|
2024
|
|
|
2023
|
|
|
2024
|
|
|
2023
|
|
|
Tangible common stockholders' equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders equity (GAAP)
|
|
$
|
226,051
|
|
|
$
|
213,743
|
|
|
$
|
226,051
|
|
|
$
|
213,743
|
|
|
Less: intangible assets
|
|
|
(18,881)
|
|
|
|
(13,373)
|
|
|
|
(18,881)
|
|
|
|
(13,373)
|
|
|
Tangible stockholders' equity (non-GAAP)
|
|
|
207,170
|
|
|
|
200,370
|
|
|
$
|
207,170
|
|
|
|
200,370
|
|
|
Less: preferred stock
|
|
|
(27,263)
|
|
|
|
(27,263)
|
|
|
|
(27,263)
|
|
|
|
(27,263)
|
|
|
Tangible common stockholders' equity (non-GAAP)
|
|
|
179,907
|
|
|
|
173,107
|
|
|
|
179,907
|
|
|
|
173,107
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares outstanding
|
|
|
7,602,783
|
|
|
|
7,524,887
|
|
|
|
7,602,783
|
|
|
|
7,524,887
|
|
|
Tangible book value per common share (non-GAAP)
|
|
$
|
23.66
|
|
|
$
|
23.00
|
|
|
$
|
23.66
|
|
|
$
|
23.00
|
|
|
|
As of September 30,
|
|
|
As of September 30,
|
|
|
|
2024
|
|
|
2023
|
|
|
2024
|
|
|
2023
|
|
|
Stockholders equity, adjusted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders equity (GAAP)
|
|
$
|
226,051
|
|
|
$
|
213,743
|
|
|
$
|
226,051
|
|
|
$
|
213,743
|
|
|
Less: intangible assets
|
|
|
(18,881)
|
|
|
|
(13,373)
|
|
|
|
(18,881)
|
|
|
|
(13,373)
|
|
|
Total tangible stockholders equity (non-GAAP)
|
|
|
207,170
|
|
|
|
200,370
|
|
|
|
207,170
|
|
|
|
200,370
|
|
|
|
As of September 30,
|
|
|
As of September 30,
|
|
|
|
2024
|
|
|
2023
|
|
|
2024
|
|
|
2023
|
|
|
Total tangible assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets (GAAP)
|
|
$
|
2,224,599
|
|
|
$
|
2,021,491
|
|
|
$
|
2,224,599
|
|
|
$
|
2,021,491
|
|
|
Less: intangible assets
|
|
|
(18,881)
|
|
|
|
(13,373)
|
|
|
|
(18,881)
|
|
|
|
(13,373)
|
|
|
Total tangible assets (non-GAAP)
|
|
|
2,205,718
|
|
|
|
2,008,118
|
|
|
|
2,205,718
|
|
|
|
2,008,118
|
|
|
|
For the three months
ended September 30,
|
|
|
For the nine months ended
September 30,
|
|
|
|
2024
|
|
|
2023
|
|
|
2024
|
|
|
2023
|
|
|
Average tangible stockholders' equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total average stockholders' equity (GAAP)
|
|
$
|
225,645
|
|
|
$
|
213,247
|
|
|
$
|
223,654
|
|
|
$
|
207,647
|
|
|
Less: average intangible assets
|
|
|
(17,738)
|
|
|
|
(12,841)
|
|
|
|
(16,405)
|
|
|
|
(11,345)
|
|
|
Total average tangible stockholders' equity (non-GAAP)
|
|
|
207,907
|
|
|
|
200,406
|
|
|
|
207,249
|
|
|
|
196,302
|
|
|
|
For the three months
ended September 30,
|
|
|
For the nine months ended
September 30,
|
|
|
|
2024
|
|
|
2023
|
|
|
2024
|
|
|
2023
|
|
|
Average tangible assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total average assets (GAAP)
|
|
$
|
2,126,128
|
|
|
$
|
1,929,490
|
|
|
$
|
2,084,859
|
|
|
$
|
1,909,432
|
|
|
Less: average intangible assets
|
|
|
(17,738)
|
|
|
|
(12,841)
|
|
|
|
(16,405)
|
|
|
|
(11,345)
|
|
|
Total average tangible assets (non-GAAP)
|
|
|
2,108,390
|
|
|
|
1,916,649
|
|
|
|
2,068,454
|
|
|
|
1,898,087
|
|
Contact: Debra Cope
Director of Corporate Communications
Desk (703) 481-4599
Mobile (202) 468-3814
View original content to download multimedia:https://www.prnewswire.com/news-releases/mainstreet-bancshares-inc-reports-third-quarter-results-302288178.html
SOURCE MainStreet Bancshares, Inc.
