Mainstreet Bancshares Inc. Reports 2024 Results

2025-01-27 08:32:53

(MENAFN- PR Newswire) "At the end of 2024, the Company impaired the full value of its capitalized intangible software. Despite this impairment, the software remains a component of our Avenu Banking-as-a-Service solution and will continue to be used to drive fintech partnerships to grow low-cost deposits and fee income," said Jeff W. Dick, Chairman & CEO of MainStreet Bancshares, Inc. and MainStreet Bank. "The end of 2024 was management's first opportunity to review the Avenu platform's performance, as it was only put into production during the fourth quarter. The delays in bringing Avenu to market and subsequent changes in the potential for revenue generation necessitated management's review for impairment and resulting charge to earnings. Management conducted the impairment assessment in accordance with ASC 350-40-35, using the income approach. We remain committed to providing innovative embedded banking services that meet our customers where they do business and that allow developers to focus on providing leading-edge digital financial solutions."

"During 2024, the Company ended the year with a healthy net interest margin of 3.13%," said Alex Vari, Chief Accountant for MainStreet Bank. "Excess liquidity in the fourth quarter gave us the opportunity to exercise call options on higher-yielding term deposits and restructure our wholesale deposit position. This will further reduce our funding costs into 2025, and with expense management efforts will yield positive results for the Company and for our shareholders."

Chief Lending Officer Tom Floyd said, "the lending team worked diligently to grow the loan portfolio by 6% while also resolving 62% of our nonperforming loans and making solid progress on resolving the final $21.7 million in a timely manner."

Total deposits grew 13% from prior year-end to $1.9 billion, with core deposits growing $187 million year on year. Total core deposits at year-end were $1.4 billion, or 75% of total deposits.

"The DC Metropolitan area remains a vibrant market. The interest rate environment is normalizing, with the FOMC cutting rates three times thus far for a total of 1.0%," said Abdul Hersiburane, President of MainStreet Bank. "Our borrowers are benefiting from the declining rate environment with strengthening liquidity."

BACKGROUND: MainStreet Bancshares, Inc. (Nasdaq: MNSB & MNSBP), is a small-cap financial holding company trading in the Nasdaq Capital Market index. The financial holding company owns 100% of MainStreet Bank, a business-focused community bank headquartered in Fairfax, Virginia. The Bank engages a branch-lite model with six full-service financial centers in Herndon, Fairfax, McLean, Leesburg, Clarendon, and Washington, D.C. 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 well over 1,000 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 Bank is an SBA Preferred Lender, offering 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, D.C., 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 .

Banking-as-a-Service
In 2021, the Board and management decided to make an investment in technology that would best serve clients requiring Banking-as-a-Service (BaaS). The Avenu BaaS solution officially launched on October 1, 2024. The ability to digitally offer banking services in a safe and compliant manner allows the Company to reach new customer deposit segments, diversify revenue streams and generate additional income. The BaaS market is currently underserved, and the opportunities for a well-developed solution are robust. The Avenu business model is in-line with the Company's physical branch-lite strategy.

Avenu provides a full-stack embedded banking solution that connects our partners and their apps directly and seamlessly to our purpose-built Avenu core. Avenu's clients are fintechs, social media solutions, application developers, money movers, and entrepreneurs. They all have one thing in common: They are in search of a reliable partner to help innovate how money moves - solving real-world issues and helping communities thrive. MainStreet Bank is that reliable partner dedicated to providing a best-in-class solution to sustain long-term business relationships.

MainStreet Bancshares, Inc. has an investment grade rating of "A" from Egan-Jones Rating Company. 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 pandemic outbreaks, 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)

	December 31, 2024		September 30, 2024			June 30, 2024		March 31, 2024	December 31, 2023*
ASSETS
Cash and cash equivalents
Cash and due from banks	$	47,553		$	40,955		$	41,697	$	49,208	$	53,581
Federal funds sold		160,155			191,159			49,762		75,533		60,932
Total cash and cash equivalents		207,708			232,114			91,459		124,741		114,513
Investment securities available for sale, at fair value		55,747			58,489			57,605		58,699		59,928
Investment securities held to maturity, at amortized cost, net of allowance for credit losses of $0 for all periods		16,078			16,016			16,036		17,251		17,275
Restricted equity securities, at amortized cost		30,623			26,745			26,797		23,924		24,356
Loans, net of allowance for credit losses of $19,450, $18,327, $17,098, $16,531, and $16,506, respectively		1,810,556			1,775,558			1,778,840		1,727,110		1,705,137
Premises and equipment, net		13,287			13,571			13,787		14,081		13,944
Accrued interest and other receivables		11,311			11,077			11,916		10,727		12,390
Computer software, net of amortization		-			18,881			17,205		15,691		14,657
Bank owned life insurance		39,507			39,203			38,901		38,609		38,318
Other assets		43,281			32,945			41,200		39,182		34,914
Total Assets	$	2,228,098		$	2,224,599		$	2,093,746	$	2,070,015	$	2,035,432
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Non-interest bearing deposits	$	324,307		$	347,575		$	314,636	$	348,945	$	364,606
Interest bearing demand deposits		139,780			197,527			179,513		165,331		137,128
Savings and NOW deposits		64,337			61,893			60,867		46,036		45,878
Money market deposits		560,082			451,936			476,396		446,903		442,179
Time deposits		819,288			834,738			723,951		725,520		696,336
Total deposits		1,907,794			1,893,669			1,755,363		1,732,735		1,686,127
Federal funds purchased		-			-			-		-		15,000
Subordinated debt		73,039			72,940			72,841		72,741		72,642
Other liabilities		39,274			31,939			40,827		41,418		40,146
Total Liabilities		2,020,107			1,998,548			1,869,031		1,846,894		1,813,915
Stockholders' Equity:
Preferred stock		27,263			27,263			27,263		27,263		27,263
Common stock		29,466			29,463			29,452		29,514		29,198
Capital surplus		67,823			67,083			66,392		65,940		65,985
Retained earnings		91,150			108,616			109,651		108,334		106,549
Accumulated other comprehensive loss		(7,711)			(6,374)			(8,043)		(7,930)		(7,478)
Total Stockholders' Equity		207,991			226,051			224,715		223,121		221,517
Total Liabilities and Stockholders' Equity	$	2,228,098		$	2,224,599		$	2,093,746	$	2,070,015	$	2,035,432

*Derived from audited financial statements

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME INFORMATION
(In thousands, except share and per share data)

	Year-to-Date		Three Months Ended
	December 31, 2024		December 31, 2023*			December 31, 2024		September 30, 2024	June 30, 2024		March 31, 2024			December 31, 2023
INTEREST INCOME:
Interest and fees on loans	$	125,177		$	116,482		$	31,323	$	31,615		$	31,655		$	30,582	$	30,951
Interest on investment securities
Taxable securities		1,693			1,836			431		397			430			435		451
Tax-exempt securities		1,093			1,065			262		294			268			270		268
Interest on federal funds sold		6,652			5,038			3,103		1,285			1,083			1,182		1,510
Total interest income		134,615			124,421			35,119		33,591			33,436			32,469		33,180
INTEREST EXPENSE:
Interest on interest bearing demand deposits		8,661			1,786			2,612		2,117			2,118			1,814		1,027
Interest on savings and NOW deposits		754			546			201		206			190			157		146
Interest on money market deposits		21,386			13,631			5,475		5,277			5,542			5,092		5,538
Interest on time deposits		37,364			26,905			10,003		9,543			9,010			8,808		8,187
Interest on federal funds purchased		575			299			-		277			191			107		25
Interest on Federal Home Loan Bank advances		46			1,224			-		-			-			46		118
Interest on subordinated debt		3,255			3,288			787		828			820			820		828
Total interest expense		72,041			47,679			19,078		18,248			17,871			16,844		15,869
Net interest income		62,574			76,742			16,041		15,343			15,565			15,625		17,311
Provision for (recovery of) credit losses		6,763			1,642			3,407		2,913			638			(195)		466
Net interest income after provision for (recovery of) credit losses		55,811			75,100			12,634		12,430			14,927			15,820		16,845
NON-INTEREST INCOME:
Deposit account service charges		1,996			2,149			481		557			490			469		510
Bank owned life insurance income		1,189			1,069			304		302			291			292		283
Net loss on securities called or matured		(48)			-			-		-			(48)			-		-
Other non-interest income (loss)		115			122			22		27			31			35		(34)
Total non-interest income		3,252			3,340			807		886			764			796		759
NON-INTEREST EXPENSES:
Salaries and employee benefits		30,475			28,267			8,253		7,250			7,484			7,488		7,129
Furniture and equipment expenses		3,636			2,787			830		931			940			935		804
Advertising and marketing		2,199			2,343			600		579			566			454		271
Occupancy expenses		1,614			1,684			358		407			415			435		397
Outside services		3,627			2,044			1,168		845			839			774		352
Administrative expenses		929			922			243		215			229			242		219
Computer software intangible impairment		19,721			-			19,721		-			-			-		-
Other operating expenses		10,766			7,569			3,258		2,992			2,362			2,153		2,166
Total non-interest expenses		72,967			45,616			34,431		13,219			12,835			12,481		11,338
Income (loss) before income tax expense (benefit)		(13,904)			32,824			(20,990)		97			2,856			4,135		6,266
Income tax expense (benefit)		(3,924)			6,239			(4,823)		(168)			238			830		1,120
Net income (loss)		(9,980)			26,585			(16,167)		265			2,618			3,305		5,146
Preferred stock dividends		2,156			2,156			539		539			539			539		539
Net income (loss) available to common shareholders	$	(12,136)		$	24,429		$	(16,706)	$	(274)		$	2,079		$	2,766	$	4,607
Earnings (loss) per common share, basic and diluted	$	(1.60)		$	3.25		$	(2.20)	$	(0.04)		$	0.27		$	0.36	$	0.61
Weighted average number of common shares, basic and diluted		7,606,391			7,522,913			7,603,318		7,601,925			7,608,389			7,611,990		7,527,327

*Derived from audited financial statements

UNAUDITED LOAN, DEPOSIT AND BORROWING DETAIL
(In thousands)

	December 31, 2024		September 30, 2024		December 31, 2023		Percentage Change
	$ Amount		% of Total		$ Amount		% of Total	$ Amount			% of Total			Last 3 Mos	Last 12 Mos
LOANS:
Construction and land development loans	$	391,253		21.3	%	$	373,486		20.8	%		$	429,637		24.9	%	4.8	%	-8.9	%
Residential real estate loans		438,745		23.9	%		446,109		24.8	%			474,602		27.5	%	-1.7	%	-7.6	%
Commercial real estate loans		898,204		48.9	%		871,280		48.4	%			743,827		43.1	%	3.1	%	20.8	%
Commercial and industrial loans		105,212		5.7	%		106,249		5.9	%			75,415		4.3	%	-1.0	%	39.5	%
Consumer loans		1,574		0.2	%		1,977		0.1	%			3,610		0.2	%	-20.4	%	-56.4	%
Total Gross Loans	$	1,834,988		100.0	%	$	1,799,101		100.0	%		$	1,727,091		100.0	%	2.0	%	6.2	%
Less: Allowance for credit losses		(19,450)					(18,327)						(16,506)
Net deferred loan fees		(4,982)					(5,216)						(5,448)
Net Loans	$	1,810,556				$	1,775,558					$	1,705,137
DEPOSITS:
Non-interest bearing deposits	$	324,307		17.0	%	$	347,575		18.4	%		$	364,606		21.6	%	-6.7	%	-11.1	%
Interest-bearing deposits:
Demand deposits		139,780		7.3	%		197,527		10.4	%			137,128		8.1	%	-29.2	%	1.9	%
Savings and NOW deposits		64,337		3.4	%		61,893		3.3	%			45,878		2.7	%	3.9	%	40.2	%
Money market deposits		560,082		29.4	%		451,936		23.9	%			442,179		26.2	%	23.9	%	26.7	%
Certificates of deposit $250,000 or more		535,676		28.0	%		532,201		28.0	%			442,662		26.3	%	0.7	%	21.0	%
Certificates of deposit less than $250,000		283,612		14.9	%		302,537		16.0	%			253,674		15.1	%	-6.3	%	11.8	%
Total Deposits	$	1,907,794		100.0	%	$	1,893,669		100.0	%		$	1,686,127		100.0	%	0.7	%	13.1	%
BORROWINGS:
Federal funds purchased		-		0.0	%		-		0.0	%			15,000		17.1	%	0.0	%	-100.0	%
Subordinated debt		73,039		100.0	%		72,940		100.0	%			72,642		82.9	%	0.1	%	0.5	%
Total Borrowings	$	73,039		100.0	%	$	72,940		100.0	%		$	87,642		100.0	%	0.1	%	-16.7	%
Total Deposits and Borrowings	$	1,980,833				$	1,966,609					$	1,773,769				0.7	%	11.7	%

Core customer funding sources ⁽¹⁾	$	1,439,657		72.7	%	$	1,471,350		74.8	%		$	1,252,534		70.7	%	-2.2	%	14.9	%
Brokered and listing service sources ⁽²⁾		468,137		23.6	%		422,319		21.5	%			433,593		24.4	%	10.8	%	8.0	%
Federal funds purchased		-		0.0	%		-		0.0	%			15,000		0.8	%	0.0	%	-100.0	%
Subordinated debt ⁽³⁾		73,039		3.7	%		72,940		3.7	%			72,642		4.1	%	0.1	%	0.5	%
Total Funding Sources	$	1,980,833		100.0	%	$	1,966,609		100.0	%		$	1,773,769		100.0	%	0.7	%	11.7	%


(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.
	Excludes $259.9 million in core deposits placed in reciprocal networks for FDIC insurance coverage that will be classified as brokered deposits on the call report in pursuant to rule 12 CFR 337.6(e) as of December 31, 2024.
(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 December 31, 2024		For the three months ended December 31, 2023
	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⁾	$	1,808,894		$	31,323		6.87	%	$	1,720,790		$	30,951	7.14	%
Securities:
Taxable		53,566			431		3.19	%		55,646			451	3.22	%
Tax-exempt		35,512			332		3.71	%		37,614			339	3.58	%
Federal funds and interest-bearing deposits		263,595			3,103		4.67	%		114,421			1,510	5.24	%
Total interest-earning assets	$	2,161,567		$	35,189		6.46	%	$	1,928,471		$	33,251	6.84	%
Other assets		129,077								69,725
Total assets	$	2,290,644							$	1,998,196
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Interest-bearing demand deposits	$	231,496		$	2,612		4.48	%	$	98,021		$	1,027	4.16	%
Savings and NOW deposits		64,112			201		1.24	%		47,142			146	1.23	%
Money market deposits		514,235			5,475		4.22	%		477,916			5,538	4.60	%
Time deposits		809,924			10,003		4.90	%		710,026			8,187	4.57	%
Total interest-bearing deposits	$	1,619,767		$	18,291		4.48	%	$	1,333,105		$	14,898	4.43	%
Federal funds purchased		2			-		0.00	%		1,740			25	5.70	%
FHLB advances		-			-		-			8,424			118	5.56	%
Subordinated debt		73,001			787		4.28	%		72,603			828	4.52	%
Total interest-bearing liabilities	$	1,692,770		$	19,078		4.47	%	$	1,415,872		$	15,869	4.45	%
Demand deposits and other liabilities		370,332								365,655
Total liabilities	$	2,063,102							$	1,781,527
Stockholders' Equity		227,542								216,669
Total Liabilities and Stockholders' Equity	$	2,290,644							$	1,998,196
Interest Rate Spread							1.99	%						2.39	%
Net Interest Income				$	16,111							$	17,382
Net Interest Margin							2.96	%						3.58	%


(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 year ended December 31, 2024		For the year ended December 31, 2023
	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⁾	$	1,782,061		$	125,177		7.02	%	$	1,659,179		$	116,482	7.02	%
Securities:
Taxable		54,935			1,693		3.08	%		57,386			1,836	3.20	%
Tax-exempt		36,379			1,384		3.80	%		37,810			1,348	3.57	%
Federal funds and interest-bearing deposits		137,073			6,652		4.85	%		103,840			5,038	4.85	%
Total interest-earning assets	$	2,010,448		$	134,906		6.71	%	$	1,858,215		$	124,704	6.71	%
Other assets		126,138								73,590
Total assets	$	2,136,586							$	1,931,805
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Interest-bearing demand deposits	$	181,109		$	8,661		4.78	%	$	83,087		$	1,786	2.15	%
Savings and NOW deposits		54,385			754		1.39	%		49,565			546	1.10	%
Money market deposit		464,400			21,386		4.61	%		365,815			13,631	3.73	%
Time deposits		748,938			37,364		4.99	%		702,034			26,905	3.83	%
Total interest-bearing deposits	$	1,448,832		$	68,165		4.70	%	$	1,200,501		$	42,868	3.57	%
Federal funds purchased		9,941			575		5.78	%		5,583			299	5.36	%
FHLB advances		820			46		5.61	%		24,959			1,224	4.90	%
Subordinated debt		72,852			3,255		4.47	%		72,455			3,288	4.54	%
Total interest-bearing liabilities	$	1,532,445		$	72,041		4.70	%	$	1,303,498		$	47,679	3.66	%
Demand deposits and other liabilities		379,510								418,386
Total liabilities	$	1,911,955							$	1,721,884
Stockholders' Equity		224,631								209,921
Total Liabilities and Stockholders' Equity	$	2,136,586							$	1,931,805
Interest Rate Spread							2.01	%						3.05	%
Net Interest Income				$	62,865							$	77,025
Net Interest Margin							3.13	%						4.15	%


(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 share and per share data)

	At or For the Three Months Ended			At or For the Year Ended
	December 31,			December 31,
	2024			2023			2024		2023
Per share Data and Shares Outstanding
Earnings (loss) per common share (basic and diluted)	$	(2.20)			$	0.61		$	(1.60)		$	3.25
Book value per common share	$	23.77			$	25.81		$	23.77		$	25.81
Tangible book value per common share⁽²⁾	$	23.77			$	23.86		$	23.77		$	23.86
Weighted average common shares (basic and diluted)		7,603,318				7,527,327			7,606,391			7,522,913
Common shares outstanding at end of period		7,603,765				7,527,415			7,603,765			7,527,415
Performance Ratios
Return (loss) on average assets (annualized)		(2.80)	%			1.02	%		(0.47)	%		1.38	%
Return (loss) on average equity (annualized)		(28.19)	%			9.42	%		(4.44)	%		12.66	%
Return (loss) on average common equity (annualized)		(33.09)	%			10.28	%		(6.15)	%		13.37	%
Yield on earning assets (FTE) ⁽²⁾ (annualized)		6.46	%			6.84	%		6.71	%		6.71	%
Cost of interest bearing liabilities (annualized)		4.47	%			4.45	%		4.70	%		3.66	%
Net interest spread (FTE)(2) (annualized)		1.99	%			2.39	%		2.01	%		3.05	%
Net interest margin (FTE)⁽²⁾ (annualized)		2.96	%			3.58	%		3.13	%		4.15	%
Non-interest income as a percentage of average assets (annualized)		0.14	%			0.17	%		0.15	%		0.17	%
Non-interest expense to average assets (annualized)		5.96	%			2.21	%		3.42	%		2.36	%
Efficiency ratio⁽³⁾		204.36	%			61.29	%		110.85	%		56.96	%
Asset Quality
Allowance for credit losses (ACL)
Beginning balance, ACL - loans	$	18,327			$	15,626		$	16,506		$	14,114
Add: recoveries		9				9			28			22
Less: charge-offs		(2,151)				(137)			(4,569)			(468)
Add: provision for (recovery of) credit losses - loans		3,265				1,008			7,485			1,943
Add: current expected credit losses, nonrecurring adoption		-				-			-			895
Ending balance, ACL - loans	$	19,450			$	16,506		$	19,450		$	16,506

Beginning balance, reserve for unfunded commitment (RUC)	$	145			$	1,552		$	1,009		$	-
Add: current expected credit losses, nonrecurring adoption		-				-			-			1,310
Add: provision for (recovery of) unfunded commitments, net		142				(543)			(722)			(301)
Ending balance, RUC	$	287			$	1,009		$	287		$	1,009
Total allowance for credit losses	$	19,737			$	17,515		$	19,737		$	17,515

Allowance for credit losses on loans to total gross loans		1.06	%			0.96	%		1.06	%		0.96	%
Allowance for credit losses to total gross loans		1.08	%			1.01	%		1.08	%		1.01	%
Allowance for credit losses on loans to non-performing loans		89.84	%			16.44X			89.84	%		16.44X
Net charge-offs (recoveries) to average gross loans (annualized)		0.46	%			0.03	%		0.25	%		0.03	%
Concentration Ratios
Commercial real estate loans to total capital ⁽⁴⁾		393.79	%			372.50	%		393.79	%		372.50	%
Construction loans to total capital ⁽⁵⁾		131.92	%			137.67	%		131.92	%		137.67	%
Non-performing Assets
Loans 30-89 days past due and accruing to total gross loans		0.00	%			0.04	%		0.00	%		0.04	%
Loans 90 days past due and accruing to total gross loans		0.00	%			0.00	%		0.00	%		0.00	%
Non-accrual loans to total gross loans		1.18	%			0.06	%		1.18	%		0.06	%
Other real estate owned	$	-			$	-		$	-		$	-
Non-performing loans	$	21,650			$	1,004		$	21,650		$	1,004
Non-performing assets to total assets		0.97	%			0.05	%		0.97	%		0.05	%
Regulatory Capital Ratios (Bank only) ⁽¹⁾
Total risk-based capital ratio		15.69	%			17.18	%		15.69	%		17.18	%
Tier 1 risk-based capital ratio		14.64	%			16.22	%		14.64	%		16.22	%
Leverage ratio		12.08	%			14.66	%		12.08	%		14.66	%
Common equity tier 1 ratio		14.64	%			16.22	%		14.64	%		16.22	%
Other information
Closing stock price	$	18.10			$	24.81		$	18.10		$	24.81
Tangible equity / tangible assets ⁽²⁾		9.33	%			10.24	%		9.33	%		10.24	%
Average tangible equity / average tangible assets ⁽²⁾		9.21	%			10.22	%		9.80	%		10.31	%
Number of full time equivalent employees		204				186			204			186
Number of full service branch offices		6				6			6			6


(1)	Regulatory capital ratios as of December 31, 2024 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, multifamily, 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 December 31,			For the year ended December 31,
	2024			2023			2024		2023
Net interest margin (FTE)
Net interest income (GAAP)	$	16,041			$	17,311		$	62,574			$	76,742
FTE adjustment on tax-exempt securities		70				71			291				283
Net interest income (FTE) (non-GAAP)		16,111				17,382			62,865				77,025

Average interest earning assets		2,161,567				1,928,471			2,010,448				1,858,215
Net interest margin (GAAP)		2.94	%			3.56	%		3.11	%			4.13	%
Net interest margin (FTE) (non-GAAP)		2.96	%			3.58	%		3.13	%			4.15	%


	For the three months ended December 31,			For the year ended December 31,
	2024			2023			2024		2023
Yield on earning assets (FTE)
Total interest income (GAAP)	$	35,119			$	33,180		$	134,615			$	124,421
FTE adjustment on tax-exempt securities		70				71			291				283
Total interest income (FTE) (non-GAAP)		35,189				33,251			134,906				124,704

Average interest earning assets		2,161,567				1,928,471			2,010,448				1,858,215
Yield on earning assets (GAAP)		6.45	%			6.83	%		6.70	%			6.70	%
Yield on earning assets (FTE) (non-GAAP)		6.46	%			6.84	%		6.71	%			6.71	%

	For the three months ended December 31,			For the year ended December 31,
	2024			2023			2024		2023
Net Income and earnings per share, adjusted
Net Income (loss), as reported	$	(16,167)			$	5,146		$	(9,980)			$	26,585
Less: nonrecurring intangible impairment		(19,721)				-			(19,721)				-
Less: nonrecurring restructuring expenses		(430)				-			(430)				-
Less: nonrecurring other expenses		(296)				-			(890)				-
Related income tax benefit		4,633				-			4,763				-
Net income (loss), adjusted		(353)				5,146			6,298				26,585
Preferred stock dividends		539				539			2,156				2,156
Net income (loss) available to common shareholders, adjusted		(892)				4,607			4,142				24,429

Weighted average shares - basic and diluted		7,603,318				7,527,327			7,606,391				7,522,913

Earnings (loss) per common share, basic and diluted, adjusted
Earnings (loss) per common share, basic and diluted, as reported	$	(2.20)			$	0.61		$	(1.60)			$	3.25
Nonrecurring expenses per share, net of taxes		2.08				-			2.14				-
Earnings (loss) per common share, basic and diluted, adjusted	$	(0.12)			$	0.61		$	0.54			$	3.25

Adjusted Return (loss) on Average Assets (ROAA)
Average assets, as reported		2,290,644				1,998,196			2,136,586				1,931,805

Annualized ROAA, as reported		(2.80)	%			1.02	%		(0.47)	%			1.38	%
Annualized ROAA, as adjusted		(0.06)	%			1.02	%		0.29	%			1.38	%

Adjusted Return (loss) on Average Equity (ROAE)
Average equity, as reported		227,542				216,669			224,631				209,921

Annualized ROAE, as reported		(28.19)	%			9.42	%		(4.44)	%			12.66	%
Annualized ROAE, as adjusted		(0.62)	%			9.42	%		2.80	%			12.66	%

Efficiency Ratio, adjusted
Noninterest expenses, as reported		34,431				11,338			72,967				45,616
Less: nonrecurring intangible impairment		(19,721)				-			(19,721)				-
Less: nonrecurring restructuring expenses		(430)				-			(430)				-
Less: nonrecurring other expenses		(296)				-			(890)				-
Noninterest expenses, adjusted for nonrecurring expenses		13,984				11,338			51,926				45,616

Efficiency ratio, as reported		204.36	%			61.29	%		110.85	%			56.96	%
Efficiency ratio, as adjusted		83.00	%			61.29	%		78.88	%			56.96	%


	For the three months ended December 31,			For the year ended December 31,
	2024			2023			2024		2023
Net interest spread (FTE)
Yield on earning assets (GAAP)		6.45	%			6.83	%	6.70	%		6.70	%
Yield on earning assets (FTE) (non-GAAP)		6.46	%			6.84	%	6.71	%		6.71	%

Yield on interest-bearing liabilities (GAAP)		4.47	%			4.45	%	4.70	%			3.66	%
Net interest spread (GAAP)		1.98	%			2.38	%	1.99	%		3.04	%
Net interest spread (FTE) (non-GAAP)		1.99	%			2.39	%		2.01	%		3.05	%

	As of December 31,			As of December 31,
	2024			2023			2024		2023
Tangible common stockholders' equity
Total stockholders equity (GAAP)	$	207,991			$	221,517		$	207,991			$	221,517
Less: intangible assets		-				(14,657)			-				(14,657)
Tangible stockholders' equity (non-GAAP)		207,991				206,860			207,991				206,860
Less: preferred stock		(27,263)				(27,263)			(27,263)				(27,263)
Tangible common stockholders' equity (non-GAAP)		180,728				179,597			180,728				179,597

Common shares outstanding		7,603,765				7,527,415			7,603,765				7,527,415
Tangible book value per common share (non-GAAP)	$	23.77			$	23.86		$	23.77			$	23.86

	As of December 31,			As of December 31,
	2024			2023			2024		2023
Stockholders equity, adjusted
Total stockholders equity (GAAP)	$	207,991			$	221,517		$	207,991			$	221,517
Less: intangible assets		-				(14,657)			-				(14,657)
Total tangible stockholders equity (non-GAAP)		207,991				206,860			207,991				206,860

	As of December 31,			As of December 31,
	2024			2023			2024		2023
Total tangible assets
Total assets (GAAP)	$	2,228,098			$	2,035,432		$	2,228,098			$	2,035,432
Less: intangible assets		-				(14,657)			-				(14,657)
Total tangible assets (non-GAAP)		2,228,098				2,020,775			2,228,098				2,020,775

	For the three months ended December 31,			For the year ended December 31,
	2024			2023			2024		2023
Average tangible stockholders' equity
Total average stockholders' equity (GAAP)	$	227,542			$	216,669		$	224,631			$	209,921
Less: average intangible assets		(18,327)				(13,929)			(16,989)				(11,996)
Total average tangible stockholders' equity (non-GAAP)		209,215				202,740			207,642				197,925

	For the three months ended December 31,			For the year ended December 31,
	2024			2023			2024		2023
Average tangible assets
Total average assets (GAAP)	$	2,290,644			$	1,998,196		$	2,136,586			$	1,931,805
Less: average intangible assets		(18,327)				(13,929)			(16,989)				(11,996)
Total average tangible assets (non-GAAP)		2,272,317				1,984,267			2,119,597				1,919,809

Contact: Billy Freesmeier
Chief of Staff
Desk (703) 481-4579

SOURCE MainStreet Bancshares, Inc.

MENAFN27012025003732001241ID1109133272

Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.