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MainStreet Bancshares net income $22.2 million

Christian Fernsby |
MainStreet Bancshares, the holding company for MainStreet Bank, reported record net income of $22.2 million for 2021.

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Net interest income of $53.5 million is up over 16% from last year. Steady loan rates and reduced funding costs propelled the net interest margin higher by 40 basis points to 3.61% in December 2021, versus 3.21% a year earlier. The Company's efficiency ratio remains solid at 55%.

"Going forward, the Company's balance sheet is positioned to respond well in a rising interest rate environment," said Tom Chmelik, CFO and Senior Executive VP of MainStreet Bancshares, Inc. and MainStreet Bank. "When the Federal Reserve initiates a rate increase, it should have a positive impact on the Company's earnings."

The portfolio of hotel loans continues to perform well, and asset quality remains pristine – as nonperforming assets represent a mere 0.05% of total assets.

The loan portfolio grew 4.1% in 2021. Excluding Paycheck Protection Program (PPP) loans, originations of $526 million were offset by paydowns and sales of $364 million. Paydowns in 2021 were significantly higher than normal, which was anticipated after the much lower than normal paydowns experienced in 2020. The balance of PPP loans at year-end was $58 million.

Non-interest-bearing deposits represent 38% of the $1.4 billion in total deposits, and 77% of total deposits are core deposits.

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