MainStreet Bancshares, Inc. Reports Strong Earnings

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Oct 17, 2022, 08:00 ET

Net interest margin fueled record financial performance as measured by multiple 3^rd 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, Va., Oct. 17, 2022 /PRNewswire/ -- 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.

Avenu Banking as a Service
Powered by MainStreet Bank (PRNewsfoto/MainStreet Bancshares, Inc.) — Avenu Banking as a Service Powered by MainStreet Bank (PRNewsfoto/MainStreet Bancshares, Inc.)

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.

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"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 fee 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 other 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		15.4	%		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:
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		24.4	%		405,634		25.8	%		316,418		21.7	%		-2.1	%		25.5	%
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 September 30, 2022							For the three 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)	$	1,446,679	$	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						3.59	%						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						3.58	%						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)		3.59	%		2.91	%		3.58	%		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		0.19	%		0.00	%		0.19	%		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	%
*Regulatory Capital Ratios (Bank only)* *(1)*
Total risk-based capital ratio		15.77	%		16.55	%		15.77	%		16.55	%
Tier 1 risk-based capital ratio		15.00	%		15.68	%		15.00	%		15.68	%
Leverage ratio		14.70	%		12.23	%		14.70	%		12.23	%
Common equity tier 1 ratio		15.00	%		15.68	%		15.00	%		15.68	%
*Other information*
Closing stock price	$	22.81		$	23.99		$	22.81		$	23.99
Equity / assets		10.25	%		11.10	%		10.21	%		11.10	%
Average equity / average assets		10.57	%		10.84	%		10.99	%		10.24	%
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	$	20.64