MainStreet Bancshares, Inc. (Nasdaq: MNSB & MNSBP), the holding company for MainStreet Bank, reported net income of $ 5.5 million for the first quarter of 2021. Net income of $ 5.5 million represents an average return on equity (ROA) of 12.95%, an average return on assets of 1.32% and $ 0.65 per common share (basic and diluted).
Net interest income was $ 13.5 million and non-interest income was $ 1.4 million for the quarter ended March 31, 2021, an increase of 31% and 2% respectively over the same period in 2020. Half of the increase in net interest income for the quarter came from the costs of establishing the Paycheck Protection Program (P3).
The company’s cost of funds for the quarter ended March 31, 2021 was 1.11%, down from 2.11% from the same period a year ago. The company is focused on reducing financing costs, increasing fee income and improving operational efficiency. The company’s efficiency ratio was 52% for the quarter ended March 31, 2021, a solid improvement from the 61% efficiency ratio reported for the same period a year ago.
Total assets were $ 1.7 billion as at March 31, 2021, a 31% increase over March 31, 2020. Net lending was $ 1.3 billion as at March 31, 2021, of which $ 180 million was dollars in PPP loan balances. Asset quality remains strong, with non-performing assets representing 0.08% of total assets as of March 31, 2021.
Non-interest bearing deposits represented 32% of total deposits of $ 1.5 billion as of March 31, 2021. Seventy-five percent of total deposits are core deposits – a markedly positive development over the years. last eight quarters.
The Company continues to be heavily capitalized and, on April 6, 2021, the Company entered into a Subordinated Note Purchase Agreement for a $ 30 million aggregate principal amount private placement of 3.75% of Fixed Rate Subordinated Notes. variable due in 2031. The Company intends to use the net proceeds from the issuance of the notes for general corporate purposes, including the potential withdrawal of existing subordinated debt and principal to support growth. of its banking subsidiary, MainStreet Bank. Performance Trust Capital Partners, LLC was the sole placement agent for the offering.
“With 2020 behind us, our customers are starting this year with strength and confidence,” said Abdul Hersiburane, Chairman of MainStreet Bank. “We are focused on aggressively adding new loan and deposit relationships to the mix.”
“We are fortunate to be in such a robust and resilient market,” said Jeff W. Dick, Chairman and CEO of MainStreet Bancshares, Inc. and MainStreet Bank. “With the addition of $ 30 million of ultra-low cost subordinated debt to our capital stack, we are well positioned to pursue growth opportunities.”
ABOUT MAINSTREET BANK: MainStreet operates seven branches in Herndon, Fairfax, Fairfax City, McLean, Leesburg, Clarendon and Washington DC MainStreet Bank has 55,000 free ATMs and a fully integrated online and mobile banking solution. The Bank is not limited by a conventional branch system, as it can offer professional clients the possibility of Put our bank in your office®. With robust and easy-to-use online merchant banking technology, MainStreet has “put our bank” into thousands of businesses across the metro area.
MainStreet Bank offers a full line of payment solutions for financial technology companies and has a team ready to create a perfect solution for their needs.
MainStreet Bank offers a robust line of business and professional lending products, including government lines of credit, commercial lines and term loans, residential and commercial construction, and commercial real estate. MainStreet is also working with the SBA to offer 7A and 504 lending solutions. From sophisticated cash management to enhanced mobile banking services and instant issue debit cards, MainStreet Bank is always looking for ways to improve lending. experience of our customers.
MainStreet Bank was the first community bank in the Washington, DC, metro area to offer a complete online business banking solution. MainStreet Bank was also the first Commonwealth of Virginia-based bank to offer CDARS – a solution that provides multi-million dollar FDIC insurance. Further information about the Bank can be obtained by visiting its website at mstreetbank.com.