Director of Corporate Communications

(703) 481-4599

MainStreet Bancshares, Inc. Reports Strong Earnings

Widening net interest margin fueled record financial performance as measured by multiple 3rd quarter 2022 key metrics:

●

1.70% Return on average assets

●

16.13% Return on average equity

●

4.14% Net interest margin

●

$0.97 Per-share earnings (basic and diluted)

Fairfax, Virginia, October 17, 2022 - MainStreet Bancshares, Inc. (Nasdaq: MNSB & MNSBP), the holding company for MainStreet Bank, reported continued strong financial performance through the third quarter as earnings on its floating-rate loans rose in-sync with FOMC interest rate increases.

Rising rates on a loan portfolio largely designed to flex with market rates sent loan interest income to $20.3 million in the third quarter. This is 13% higher than the second quarter of 2022 and 34% higher than the third quarter of 2021.

The Company recorded net income of $7.2 million for the quarter ending September 30, 2022. Net income was up 34% from the second quarter and 62% from the year-earlier third quarter. The net interest margin widened to 4.14%, at September 30, 2022, up 84 basis points from a year earlier. The Company's efficiency ratio was stellar at 50.88%.

"Year-to-date earnings per share are $2.31, and we are forecasting $3.25 for the year, assuming loan growth remains consistent with previous quarters," said Jeff W. Dick, Chairman and CEO of MainStreet Bancshares, Inc. and MainStreet Bank. "Although the Company benefits from a rising interest rate environment, we remain hopeful that the FOMC will react quickly as and when they identify and achieve the neutral rate."

The loan portfolio has grown 8% since the beginning of 2022, and total assets are approaching $1.9 billion. Asset quality remains pristine, with zero non-performing assets as of quarter-ended September 30. Noninterest-bearing deposits represent 36% of the $1.6 billion in total deposits, and 71% of total deposits are core deposits.

"We continue to experience solid organic growth in deposits to support our lending," said Abdul Hersiburane, President of MainStreet Bank. "The Washington, D.C., branch has proven to be a particularly strong funnel for new business - especially construction lending and government contract lending opportunities," Hersiburane added.

The level of Accumulated Other Comprehensive Income (AOCI) for the Company remains low at -5.13% of total capital.

The Company will discuss quarterly and year-to-date earnings and preview business developments with Avenu™ during their virtual quarterly earnings call at 2 p.m. Eastern time today.

Avenu™ - Banking Delivered

Avenu™ offers the only embedded banking solution that connects our partners and their app's directly and seamlessly to a banking core -- our banking core. We are not a sponsor bank without our own technology, and we are not a middleware software company (aggregator) without our own bank. We are Avenu, a leading financial technology company backed by an established community business bank in the heart of Washington, DC.

Avenu™ - Serving a Community of Innovation

Our clients are fintechs, application developers, money movers, and entrepreneurs. They all have one thing in common - they are innovating how money moves to solve real-world issues and help communities thrive. We are focused on serving our community and long-term business relationships.

"We are currently onboarding our initial beta customers with an anticipated go-live date around year-end 2022," said Todd Youngren, President of Avenu™. "Clients are telling us they see unique value in our risk- and compliance-centric approach, which is a critical consideration whenever handling other people's money," he added.

To learn more about Avenu™, visit Avenu.bank and join the queue today.

ABOUT MAINSTREET BANK: MainStreet operates six branches in Herndon, Fairfax, 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 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, 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. 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 the novel coronavirus (COVID-19) outbreak, 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, 2022 June 30, 2022

March 31, 2022

December 31, 2021

September 30, 2021

ASSETS

Cash and cash equivalents

Cash and due from banks

$ 50,636 $ 55,636 $ 63,986 $ 61,827 $ 67,992

Federal funds sold

54,098 47,013 37,756 31,372 65,725

Total cash and cash equivalents

104,734 102,649 101,742 93,199 133,717

Investment securities available for sale, at fair value

162,319 143,240 123,802 99,913 171,603

Investment securities held to maturity, at carrying value

17,670 17,698 18,769 20,349 21,148

Restricted equity securities, at cost

16,436 16,485 17,209 15,609 9,972

Loans, net of allowance for loan losses of $12,994, $12,982, $12,500,$11,697, and $11,428, respectively

1,448,071 1,416,875 1,413,238 1,341,760 1,246,331

Premises and equipment, net

14,523 14,756 14,833 14,863 14,795

Other real estate owned, net

- - - 775 1,158

Accrued interest and other receivables

8,273 7,313 6,980 7,701 4,718

Computer software, net of amortization

7,258 4,956 3,906 2,493 1,165

Bank owned life insurance

36,996 36,742 36,492 36,241 35,987

Other assets

43,835 32,665 24,777 14,499 16,605

Total Assets

 $ 1,860,115 $ 1,793,379 $ 1,761,748 $ 1,647,402 $ 1,657,199

LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities:

Non-interest bearing deposits

$ 566,016 $ 535,591 $ 514,160 $ 530,678 $ 475,157

Interest bearing DDA deposits

93,695 99,223 76,286 69,232 63,622

Savings and NOW deposits

54,240 58,156 81,817 85,175 79,556

Money market deposits

254,190 231,207 301,842 267,730 310,776

Time deposits

585,783 575,950 460,839 459,148 485,255

Total deposits

1,553,924 1,500,127 1,434,944 1,411,963 1,414,366

Federal Home Loan Bank advances and other borrowings

- - 40,000 - -

Subordinated debt

72,146 72,047 71,955 29,294 40,635

Other liabilities

44,045 32,801 26,053 17,357 18,169

Total Liabilities

 1,670,115 1,604,975 1,572,952 1,458,614 1,473,170

Stockholders' Equity:

Preferred stock

27,263 27,263 27,263 27,263 27,263

Common stock

28,728 29,178 29,642 29,466 29,462

Capital surplus

63,231 64,822 66,798 67,668 67,152

Retained earnings

80,534 73,702 68,691 64,194 59,920

Accumulated other comprehensive income (loss)

(9,756 ) (6,561 ) (3,598 ) 197 232

Total Stockholders' Equity

 190,000 188,404 188,796 188,788 184,029

Total Liabilities and Stockholders' Equity

 $ 1,860,115 $ 1,793,379 $ 1,761,748 $ 1,647,402 $ 1,657,199

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME INFORMATION

(In thousands, except share and per share data)

Year-to-Date

Three Months Ended

September 30, 2022 September 30, 2021 September 30, 2022 June 30, 2022 March 31, 2022 December 31, 2021 September 30, 2021

INTEREST INCOME:

Interest and fees on loans

$ 54,900 $ 46,211 $ 20,261 $ 17,954 $ 16,685 $ 15,532 $ 15,162

Interest on investment securities

Taxable securities

1,136 910 378 401 357 327 318

Tax-exempt securities

796 802 261 263 272 283 267

Interest on federal funds sold

1,241 73 1,013 195 34 61 38

Total interest income

58,073 47,996 21,913 18,813 17,348 16,203 15,785

INTEREST EXPENSE:

Interest on interest bearing DDA deposits

345 170 175 105 65 59 60

Interest on savings and NOW deposits

122 127 43 42 37 38 38

Interest on money market deposits

766 645 496 151 119 127 148

Interest on time deposits

5,236 6,039 2,275 1,530 1,431 1,574 1,795

Interest on Federal Home Loan Bank advances and other borrowings

83 - - 52 31 - -

Interest on subordinated debt

2,108 1,346 828 812 468 539 541

Total interest expense

8,660 8,327 3,817 2,692 2,151 2,337 2,582

Net interest income

49,413 39,669 18,096 16,121 15,197 13,866 13,203

Provision for (recovery of) loan losses

1,280 (1,470 ) - 480 800 295 290

Net interest income after provision for (recovery of) loan losses

48,133 41,139 18,096 15,641 14,397 13,571 12,913

NON-INTEREST INCOME:

Deposit account service charges

1,810 1,802 601 597 611 624 642

Bank owned life insurance income

754 647 254 250 251 253 252

Loan swap fee income

619 - 518 101 - 83 -

Net gain on held-to-maturity securities

4 3 - 4 - 3 -

Net gain (loss) on sale of loans

(168 ) 434 (211 ) - 43 413 (40 )

Other non-interest income

754 1,601 186 312 257 247 632

Total other income

3,773 4,487 1,348 1,264 1,162 1,623 1,486

NON-INTEREST EXPENSES:

Salaries and employee benefits

17,025 14,276 5,874 5,604 5,548 5,029 4,847

Furniture and equipment expenses

2,076 1,743 760 659 657 726 716

Advertising and marketing

1,684 1,115 704 574 406 450 438

Occupancy expenses

1,093 1,092 400 352 341 449 399

Outside services

1,545 908 611 567 368 485 292

Administrative expenses

658 493 253 195 210 192 202

Other operating expenses

4,268 4,517 1,291 1,543 1,433 1,389 1,567

Total non-interest expenses

28,349 24,144 9,893 9,494 8,963 8,720 8,461

Income before income tax expense

23,557 21,482 9,551 7,411 6,596 6,474 5,938

Income tax expense

4,462 4,124 1,808 1,481 1,173 1,660 1,155

Net income

19,095 17,358 7,743 5,930 5,423 4,814 4,783

Preferred stock dividends

1,617 1,617 539 539 539 539 539

Net income available to common shareholders

$ 17,478 $ 15,741 $ 7,204 $ 5,391 $ 4,884 $ 4,275 $ 4,244

Net income per common share, basic and diluted

$ 2.31 $ 2.09 $ 0.97 $ 0.71 $ 0.64 $ 0.56 $ 0.56

Weighted average number of common shares, basic and diluted

7,561,567 7,547,254 7,463,719 7,575,484 7,647,519 7,595,062 7,571,214

UNAUDITED LOAN, DEPOSIT AND BORROWING DETAIL

(In thousands)

September 30, 2022

June 30, 2022

September 30, 2021

Percentage Change

$ Amount

% of Total

$ Amount

% of Total

$ Amount

% of Total

Last 3 Mos

Last 12 Mos

LOANS:

Construction and land development loans

$ 366,689 25.0 % $ 358,062 25.0 % $ 327,004 25.9 % 2.4 % 12.1 %

Residential real estate loans

373,056 25.4 % 366,758 25.6 % 223,029 17.6 % 1.7 % 67.3 %

Commercial real estate loans

638,110 43.5 % 599,683 41.8 % 494,766 39.1 % 6.4 % 29.0 %

Commercial industrial loans - Other

74,482 5.1 % 92,672 6.5 % 191,281 15.1 % -19.6 % -61.1 %

Consumer loans

13,628 1.0 % 17,223 1.1 % 27,740 2.3 % -20.9 % -50.9 %

Total Gross Loans

$ 1,465,965 100.0 % $ 1,434,398 100.0 % $ 1,263,820 100.0 % 2.2 % 16.0 %

Less: Allowance for loan losses

(12,994 ) (12,982 ) (11,428 )

Net deferred loan fees

(4,900 ) (4,541 ) (6,061 )

Net Loans

$ 1,448,071 $ 1,416,875 $ 1,246,331

DEPOSITS:

Non-interest bearing demand deposits

$ 566,016 36.4 % $ 535,591 35.7 % $ 475,157 33.6 % 5.7 % 19.1 %

Interest-bearing demand deposits:

Demand deposits

93,695 6.0 % 99,223 6.6 % 63,622 4.5 % -5.6 % 47.3 %

Savings and NOW deposits

54,240 3.5 % 58,156 3.9 % 79,556 5.6 % -6.7 % -31.8 %

Money market accounts

254,190 16.4 % 231,207 15.4 % 310,776 22.0 % 9.9 % -18.2 %

Certificates of deposit $250,000 or more

371,739 23.9 % 383,340 25.6 % 295,454 20.9 % -3.0 % 25.8 %

Certificates of deposit less than $250,000

214,044 13.8 % 192,610 12.8 % 189,801 13.4 % 11.1 % 12.8 %

Total Deposits

$ 1,553,924 100.0 % $ 1,500,127 100.0 % $ 1,414,366 100.0 % 3.6 % 9.9 %

BORROWINGS:

Federal Home Loan Bank advances

- 0.0 % - 0.0 % - - 100.0 % 0.0 %

Subordinated debt

72,146 100.0 % 72,047 100.0 % 40,635 100.0 % 0.1 % 77.5 %

Total Borrowings

$ 72,146 100.0 % $ 72,047 100.0 % $ 40,635 100.0 % 0.1 % 77.5 %

Total Deposits and Borrowings

$ 1,626,070 $ 1,572,174 $ 1,455,001 3.4 % 11.8 %

Core customer funding sources (1)

 $ 1,156,862 71.1 % $ 1,094,493 69.6 % $ 1,097,948 75.5 % 5.7 % 5.4 %

Brokered and listing service sources (2)

 397,062 24.5 % 405,634 25.8 % 316,418 21.7 % -2.1 % 25.5 %

Federal Home Loan Bank advances

- 0.0 % - 0.0 % - - 100.0 % 0.0 %

Subordinated debt (3)

 72,146 4.4 % 72,047 4.6 % 40,635 2.8 % 0.1 % 77.5 %

Total Funding Sources

$ 1,626,070 100.0 % $ 1,572,174 100.0 % $ 1,455,001 100.0 % 3.4 % 11.8 %

(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

(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 September30, 2022

For the three months ended September30, 2021

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)

 $ 1,446,679 $ 20,261 5.56 % $ 1,258,485 $ 15,162 4.78 %

Securities:

Taxable

73,914 378 2.03 % 66,309 318 1.90 %

Tax-exempt

38,074 330 3.44 % 36,584 338 3.67 %

Federal funds and interest-bearing deposits

182,331 1,013 2.20 % 234,363 38 0.06 %

Total interest earning assets

$ 1,740,998 $ 21,982 5.01 % $ 1,595,741 $ 15,856 3.94 %

Other assets

61,479 88,521

Total assets

$ 1,802,477 $ 1,684,262

Liabilities and Stockholders' Equity:

Interest-bearing liabilities:

Interest-bearing demand deposits

$ 93,569 $ 175 0.74 % $ 64,966 $ 60 0.37 %

Savings and NOW deposits

55,100 43 0.31 % 75,968 38 0.20 %

Money market deposit accounts

257,091 496 0.77 % 302,848 148 0.19 %

Time deposits

575,832 2,275 1.57 % 507,254 1,795 1.40 %

Total interest-bearing deposits

$ 981,592 $ 2,989 1.21 % $ 951,036 $ 2,041 0.85 %

Federal funds purchased

2 - - 2 - -

Subordinated debt

72,107 828 4.56 % 40,609 541 5.29 %

Total interest-bearing liabilities

$ 1,053,701 $ 3,817 1.44 % $ 991,647 $ 2,582 1.03 %

Demand deposits and other liabilities

558,337 510,008

Total liabilities

$ 1,612,038 $ 1,501,655

Stockholders' Equity

190,439 182,607

Total Liabilities and Stockholders' Equity

$ 1,802,477 $ 1,684,262

Interest Rate Spread

 3.57 % 2.91 %

Net Interest Income

 $ 18,165 $ 13,274

Net Interest Margin

 4.14 % 3.30 %

(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, 2022

For the nine months ended September 30, 2021

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)

 $ 1,420,013 $ 54,900 5.17 % $ 1,293,359 $ 46,211 4.78 %

Securities:

Taxable

73,496 1,136 2.07 % 57,838 910 2.10 %

Tax-exempt

38,703 1,008 3.48 % 36,737 1,015 3.69 %

Federal funds and interest-bearing deposits

121,832 1,241 1.36 % 224,521 73 0.04 %

Total interest earning assets

$ 1,654,044 $ 58,285 4.71 % $ 1,612,455 $ 48,209 4.00 %

Other assets

71,361 76,758

Total assets

$ 1,725,405 $ 1,689,213

Liabilities and Stockholders' Equity:

Interest-bearing liabilities:

Interest-bearing demand deposits

$ 86,836 $ 345 0.53 % $ 67,345 $ 170 0.34 %

Savings and NOW deposits

66,714 122 0.24 % 72,591 127 0.23 %

Money market deposit accounts

252,992 766 0.40 % 345,662 645 0.25 %

Time deposits

511,242 5,236 1.37 % 508,722 6,039 1.59 %

Total interest-bearing deposits

$ 917,784 $ 6,469 0.94 % $ 994,320 $ 6,981 0.94 %

Federal funds and repos purchased

2 - - 1 - -

Subordinated debt

62,807 2,108 4.49 % 31,815 1,346 5.66 %

FHLB borrowings

24,011 83 0.46 % - - -

Total interest-bearing liabilities

$ 1,004,604 $ 8,660 1.15 % $ 1,026,136 $ 8,327 1.08 %

Demand deposits and other liabilities

531,115 486,510

Total liabilities

$ 1,535,719 $ 1,512,646

Stockholders' Equity

189,686 176,567

Total Liabilities and Stockholders' Equity

$ 1,725,405 $ 1,689,213

Interest Rate Spread

 3.56 % 2.92 %

Net Interest Income

 $ 49,625 $ 39,882

Net Interest Margin

 4.01 % 3.31 %

(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 per share data)

At or For the Three Months Ended

At or For the Nine Months Ended

September 30,

September 30,

2022

2021

2022

2021

Per share Data and Shares Outstanding

Earnings per common share (basic and diluted)

$ 0.97 $ 0.56 $ 2.31 $ 2.09

Book value per common share

$ 21.92 $ 20.64 $ 21.92 $ 20.64

Tangible book value per common share(2)

 $ 20.94 $ 20.64 $ 20.94 $ 20.64

Weighted average common shares (basic and diluted)

7,463,719 7,571,214 7,561,567 7,547,254

Common shares outstanding at end of period

7,425,432 7,593,749 7,425,432 7,593,749

Performance Ratios

Return on average assets (annualized)

1.70 % 1.13 % 1.48 % 1.37 %

Return on average equity (annualized)

16.13 % 10.39 % 13.46 % 13.14 %

Return on average common equity (annualized)

17.52 % 10.84 % 14.39 % 14.09 %

Yield on earning assets (FTE) (2) (annualized)

5.01 % 3.94 % 4.71 % 4.00 %

Cost of interest bearing liabilities (annualized)

1.44 % 1.03 % 1.15 % 1.08 %

Net interest spread (FTE)(2)

 3.57 % 2.91 % 3.56 % 2.92 %

Net interest margin (FTE)(2) (annualized)

4.14 % 3.30 % 4.01 % 3.31 %

Noninterest income as a percentage of average assets (annualized)

0.30 % 0.35 % 0.29 % 0.36 %

Noninterest expense to average assets (annualized)

2.18 % 1.99 % 2.20 % 1.91 %

Efficiency ratio(3)

 50.88 % 57.60 % 53.30 % 54.68 %

Asset Quality

Commercial real estate loans to total capital (4)

 370.05 % 341.44 % 370.05 % 341.44 %

Construction loans to total capital (5)

 137.51 % 150.42 % 137.51 % 150.42 %

Loans 30-89 days past due to total gross loans

0.17 % 0.00 % 0.17 % 0.00 %

Loans 90 days past due to total gross loans

0.02 % 0.00 % 0.02 % 0.00 %

Non-accrual loans to total gross loans

0.00 % 0.00 % 0.00 % 0.00 %

Other real estate owned

$ - $ 1,158 $ - $ 1,158

Non-performing assets

$ - $ 1,158 $ - $ 1,158

Non-performing assets to total assets

0.00 % 0.07 % 0.00 % 0.07 %

Allowance for loan losses to total gross loans

0.89 % 0.90 % 0.89 % 0.90 %

Allowance for loan losses to non-performing assets

N/A 9.87 N/A 9.87

Net loan recoveries

$ (13 ) $ (5 ) $ (18 ) $ (21 )

Net charge-offs (recoveries) to average gross loans (annualized)

N/A 0.00 % N/A 0.00 %

Troubled debt restructurings (total)

Performing in accordance with modified terms

$ - $ - $ - $ -

Not performing in accordance with modified terms

$ - $ - $ - $ -

Regulatory Capital Ratios (Bank only) (1)

Total risk-based capital ratio

16.39 % 16.55 % 16.39 % 16.55 %

Tier 1 risk-based capital ratio

15.59 % 15.68 % 15.59 % 15.68 %

Leverage ratio

14.01 % 12.23 % 14.01 % 12.23 %

Common equity tier 1 ratio

15.59 % 15.68 % 15.59 % 15.68 %

Other information

Closing stock price

$ 22.81 $ 23.99 $ 22.81 $ 23.99

Equity / assets

10.25 % 11.10 % 10.25 % 11.10 %

Average equity / average assets

10.57 % 10.84 % 10.99 % 10.45 %

Number of full time equivalent employees

157 128 157 128

# Full service branch offices

6 6 6 6

(1)

Regulatory capital ratios as of September 30, 2022 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 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,

2022

2021

2022

2021

Net interest margin (FTE)

Net interest income (GAAP)

$ 18,096 $ 13,203 $ 49,413 $ 39,669

FTE adjustment on tax-exempt securities

69 71 212 213

Net interest income (FTE) (non-GAAP)

18,165 13,274 49,625 39,882

Average interest earning assets

1,740,998 1,595,741 1,654,044 1,612,455

Net interest margin (GAAP)

4.12 % 3.28 % 3.99 % 3.29 %

Net interest margin (FTE) (non-GAAP)

4.14 % 3.30 % 4.01 % 3.31 %

For the three months ended September 30,

For the nine months ended September 30,

2022

2021

2022

2021

Stockholders equity, adjusted

Total stockholders equity (GAAP)

$ 190,000 $ 184,029 $ 190,000 $ 184,029

Less: preferred stock

(27,263 ) (27,263 ) (27,263 ) (27,263 )

Total common stockholders equity (GAAP)

162,737 156,766 $ 162,737 $ 156,766

Less: intangible assets

7,258 1,165 7,258 1,165

Tangible common stockholders equity (non-GAAP)

155,479 155,601 155,479 155,601

Shares outstanding

7,425,432 7,593,749 7,425,432 7,593,749

Tangible book value per common share (non-GAAP)

$ 20.94 $ 20.49 $ 20.94 $ 20.49

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MainStreet Bancshares Inc. published this content on 17 October 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 October 2022 12:12:01 UTC.