MainStreet Bancshares reported total assets of $1.06 billion as of September 30, 2018, compared to $705.5 million one year earlier, an increase of 50%. The company said it 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. 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.
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.
“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 and MainStreet Bank. “We continue to see quality growth opportunities in the markets we serve.”
MainStreet Bank was the first community bank in the Washington, D.C. metropolitan area to offer a full online business banking solution and the first bank headquartered in the Commonwealth of Virginia to offer CDARS – a solution that provides multi-million-dollar FDIC insurance. MainStreet operates six branches in Herndon, Fairfax, Fairfax City, McLean, Leesburg and Clarendon, along with 55,000 free ATMs and a fully integrated online and mobile banking solution.
