MainStreet Bancshares Inc. Reports First Quarter Results

Rhea-AI Summary

MainStreet Bancshares Inc. (MNSB) reported Q1 2025 financial results with net income of $2.5 million and earnings per share of $0.25. The company's net interest margin expanded to 3.30%, up 34 basis points from the previous quarter.

Net interest income after provision for credit losses reached $16.5 million, increasing by $3.9 million quarter-over-quarter. Total deposits remained stable at $1.9 billion, with funding costs improving by 24 basis points to 3.49%. The bank maintains a 96% loan-to-deposit ratio.

Total assets stood at $2.2 billion with gross loans at $1.8 billion. Nonperforming loans remained at $21.7 million, with $11.2 million expected to pay off at par in Q2 2025. The company announced discontinuation of its Avenu technology initiative due to extended timeline for return on invested capital.

Positive

• Net interest margin increased by 34 basis points to 3.30%
• Net interest income grew by $3.9 million quarter-over-quarter to $16.5 million
• Funding costs improved by 24 basis points to 3.49%
• $11.2 million of nonperforming loans expected to be resolved in Q2 2025

Negative

• Net income of $2.5 million indicates relatively modest earnings
• Nonperforming loans remain significant at $21.7 million
• Discontinuation of Avenu technology initiative impacts growth prospects
• High loan-to-deposit ratio of 96% leaves room for loan growth

Insights

Financial Analyst

MainStreet's Q1 shows improved margins and stable credit quality, though earnings remain modest amid strategic technology pullback.

MainStreet Bancshares reported $2.5 million in Q1 net income, translating to $0.25 earnings per share. The standout metric is their net interest margin expansion to 3.30%, up 34 basis points quarter-over-quarter, primarily achieved through effective deposit repricing. This improvement drove net interest income after provisions to $16.5 million, a substantial $3.9 million increase from the previous quarter.

The bank successfully reduced its funding costs by 24 basis points to 3.49% while maintaining a stable $1.9 billion deposit base. Their strategic repositioning of $211 million of noncore deposits to quickly reprice in a rate-cut scenario demonstrates forward-thinking balance sheet management.

Asset quality metrics remain stable with nonperforming loans at $21.7 million against the $1.8 billion loan portfolio (approximately 1.2% NPL ratio). Management expects $11.2 million of these loans to pay off at par in Q2, which would further strengthen asset quality.

The bank's 96% loan-to-deposit ratio shows efficient utilization of deposits for lending, though it leaves room for loan growth without corresponding deposit expansion. Total assets stood at $2.2 billion with gross loans stable at $1.8 billion.

A significant strategic shift was the discontinuation of the Avenu technology initiative due to extended ROI timelines, with management redirecting focus to core banking operations. This decision trades potential innovation-driven growth for traditional banking stability in the near term.

Banking Industry Specialist

MainStreet's margin expansion and funding cost reduction demonstrate effective rate cycle management despite discontinued tech initiative.

MainStreet Bank's 34 basis point improvement in net interest margin to 3.30% is particularly notable in today's banking environment, where many regional institutions continue facing margin compression. Combined with their 24 basis point reduction in funding costs to 3.49%, these results demonstrate sophisticated balance sheet management during challenging interest rate conditions.

The bank's approach to deposit management reveals strategic foresight. By maintaining stable total deposits at $1.9 billion while restructuring $211 million of their $578 million noncore deposits for quick repricing in a potential rate cut scenario, MainStreet has positioned itself advantageously for possible monetary policy shifts.

Credit quality appears well-managed with nonperforming loans steady at $21.7 million. The anticipated resolution of $11.2 million of these loans at par value in Q2 suggests effective workout strategies with distressed borrowers.

The 96% loan-to-deposit ratio indicates the bank is deploying deposits efficiently into earning assets, though it approaches levels that could constrain future loan growth without corresponding deposit expansion.

The decision to discontinue the Avenu technology initiative reflects a common dilemma facing regional banks - balancing innovation investments against core banking returns. This strategic pivot toward traditional banking may optimize near-term capital allocation but potentially limits diversification of revenue streams in an increasingly digital banking landscape.

Management's "cautiously optimistic" outlook for the DC Metropolitan market, with specific mention of monitoring the new administration's early days, indicates awareness of potential policy-driven factors that could affect their regional banking environment.

Expanding Net Interest Margin, Resilient Loan Portfolio and Well Capitalized

FAIRFAX, Va., April 21, 2025 /PRNewswire/ -- MainStreet Bancshares, Inc. (Nasdaq: MNSB & MNSBP), the financial holding company for MainStreet Bank, reported first quarter net income of $2.5 million with a net interest margin of 3.30%, up 34 basis points from the previous quarter.  Net interest income after provision for credit losses was $16.5 million, up $3.9 million from the previous quarter and earnings per common share were $0.25 for the first quarter.  The Company continues to report strong asset quality and strong capital.

Total deposits maintained their level at $1.9 billion, with total funding costs improving by 24 basis points from the previous quarter to 3.49%. "Our net interest margin expansion was fueled primarily by an opportunity to replace higher cost deposits," said Alex Vari, Chief Accountant for MainStreet Bank. "We worked diligently to optimize pricing on our deposit stack, while also structuring $211 million of our $578 million in noncore deposits to reprice quickly should rates adjust down." The loan-to-deposit ratio of 96% indicates efficient utilization of deposit funds for lending.

Nonperforming loans held steady at a low level of $21.7 million during the quarter, with another $11.2 million expected to pay off at par in the second quarter based upon a successful court-approved resolution.  Chief Credit Officer Chris Johnston said, "The resolution of nonperforming loans is a testament to the team's diligent and creative efforts to work together with borrowers to find positive outcomes in a timely manner."

Total assets were $2.2 billion with gross loans demonstrating stability at $1.8 billion. "We remain cautiously optimistic about the DC Metropolitan market," said Abdul Hersiburane, President of MainStreet Bank. "Our team is steadfast on serving our customers but taking conservative steps as we monitor the early days that come with a new administration."

Banking-as-a-Service

"This quarter saw a change in direction for the Avenu technology initiative, which will not be moving forward," according to Chairman and CEO Jeff W. Dick.  "The timeline for the expected return on invested capital extended beyond the Company's plan, and we decided to devote our energy on the core bank."

About MainStreet Bank: MainStreet operates six branches 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 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, 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.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 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)
		March 31, 2025				December 31, 2024*				September 30, 2024				June 30, 2024				March 31, 2024
ASSETS
Cash and cash equivalents
Cash and due from banks		$	18,385			$	21,351			$	15,319			$	17,112			$	17,270
Interest-bearing deposits at other financial institutions			159,582				161,866				191,637				50,495				76,178
Federal funds sold			24,673				24,491				25,158				23,852				31,293
Total cash and cash equivalents			202,640				207,708				232,114				91,459				124,741
Investment securities available for sale, at fair value			55,935				55,747				58,489				57,605				58,699
Investment securities held to maturity, at amortized cost, net of allowance for credit losses of $0 for all periods			15,657				16,078				16,016				16,036				17,251
Restricted equity securities, at amortized cost			33,611				30,623				26,745				26,797				23,924
Loans, net of allowance for credit losses of $19,460, $19,450, $18,327, $17,098, and $16,531, respectively			1,811,789				1,810,556				1,775,558				1,778,840				1,727,110
Premises and equipment, net			13,020				13,287				13,571				13,787				14,081
Accrued interest and other receivables			9,607				11,311				11,077				11,916				10,727
Computer software, net of amortization			—				—				18,881				17,205				15,691
Bank owned life insurance			39,809				39,507				39,203				38,901				38,609
Other assets			40,777				43,281				32,945				41,200				39,182
Total Assets		$	2,222,845			$	2,228,098			$	2,224,599			$	2,093,746			$	2,070,015
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Non-interest bearing deposits		$	345,319			$	324,307			$	347,575			$	314,636			$	348,945
Interest-bearing demand deposits			106,033				139,780				197,527				179,513				165,331
Savings and NOW deposits			124,049				64,337				61,893				60,867				46,036
Money market deposits			511,925				560,082				451,936				476,396				446,903
Time deposits			820,999				819,288				834,738				723,951				725,520
Total deposits			1,908,325				1,907,794				1,893,669				1,755,363				1,732,735
Subordinated debt, net			72,138				73,039				72,940				72,841				72,741
Other liabilities			32,764				39,274				31,939				40,827				41,418
Total Liabilities			2,013,227				2,020,107				1,998,548				1,869,031				1,846,894
Stockholders' Equity:
Preferred stock			27,263				27,263				27,263				27,263				27,263
Common stock			29,810				29,466				29,463				29,452				29,514
Capital surplus			67,612				67,823				67,083				66,392				65,940
Retained earnings			92,305				91,150				108,616				109,651				108,334
Accumulated other comprehensive loss			(7,372)				(7,711)				(6,374)				(8,043)				(7,930)
Total Stockholders' Equity			209,618				207,991				226,051				224,715				223,121
Total Liabilities and Stockholders' Equity		$	2,222,845			$	2,228,098			$	2,224,599			$	2,093,746			$	2,070,015

*Derived from audited financial statements

 

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME (LOSS) INFORMATION (In thousands, except share and per share data)
		Three Months Ended
		March 31, 2025				December 31, 2024				September 30, 2024				June 30, 2024				March 31, 2024
INTEREST INCOME:
Interest and fees on loans		$	31,111			$	31,323			$	31,615			$	31,655			$	30,582
Interest on investment securities
Taxable securities			420				431				397				430				435
Tax-exempt securities			263				262				294				268				270
Interest on interest-bearing deposits at other financial institutions			946				2,826				1,041				806				889
Interest on federal funds sold			223				277				244				277				293
Total interest income			32,963				35,119				33,591				33,436				32,469
INTEREST EXPENSE:
Interest on interest-bearing demand deposits			1,048				2,612				2,117				2,118				1,814
Interest on savings and NOW deposits			221				201				206				190				157
Interest on money market deposits			5,276				5,475				5,277				5,542				5,092
Interest on time deposits			9,031				10,003				9,543				9,010				8,808
Interest on federal funds purchased			65				—				277				191				107
Interest on Federal Home Loan Bank advances			—				—				—				—				46
Interest on subordinated debt			812				787				828				820				820
Total interest expense			16,453				19,078				18,248				17,871				16,844
Net interest income			16,510				16,041				15,343				15,565				15,625
Provision for (recovery of) credit losses			—				3,407				2,913				638				(195)
Net interest income after provision for (recovery of) credit losses			16,510				12,634				12,430				14,927				15,820
NON-INTEREST INCOME:
Deposit account service charges			530				481				557				490				469
Bank owned life insurance income			302				304				302				291				292
Gain on retirement of subordinated debt			60				—				—				—				—
Net loss on securities called or matured			—				—				—				(48)				—
Other non-interest income			47				22				27				31				35
Total non-interest income			939				807				886				764				796
NON-INTEREST EXPENSES:
Salaries and employee benefits			8,385				8,253				7,250				7,484				7,488
Furniture and equipment expenses			1,016				830				931				940				935
Advertising and marketing			481				600				579				566				454
Occupancy expenses			396				358				407				415				435
Outside services			1,173				1,168				845				839				774
Administrative expenses			229				243				215				229				242
Computer software intangible impairment			—				19,721				—				—				—
Other operating expenses			2,634				3,258				2,992				2,362				2,153
Total non-interest expenses			14,314				34,431				13,219				12,835				12,481
Income (loss) before income tax expense (benefit)			3,135				(20,990)				97				2,856				4,135
Income tax expense (benefit)			682				(4,823)				(168)				238				830
Net income (loss)			2,453				(16,167)				265				2,618				3,305
Preferred stock dividends			539				539				539				539				539
Net income (loss) available to common shareholders		$	1,914			$	(16,706)			$	(274)			$	2,079			$	2,766
Earnings (loss) per common share, basic and diluted		$	0.25			$	(2.20)			$	(0.04)			$	0.27			$	0.36
Weighted average number of common shares, basic and diluted			7,636,191				7,603,318				7,601,925				7,608,389				7,611,990

 

UNAUDITED LOAN, DEPOSIT AND BORROWING DETAIL (In thousands)
		March 31, 2025								December 31, 2024								March 31, 2024								Percentage Change
		$ Amount				% of Total				$ Amount				% of Total				$ Amount				% of Total				Last 3 Mos				Last 12 Mos
LOANS:
Construction and land development loans		$	344,742				18.8	%		$	393,385				21.4	%		$	408,903				23.4	%			-12.4	%			-15.7	%
Residential real estate loans			450,728				24.6	%			439,481				23.9	%			451,991				25.8	%			2.6	%			-0.3	%
Commercial real estate loans			933,947				50.9	%			895,743				48.8	%			813,387				46.5	%			4.3	%			14.8	%
Commercial and industrial loans			105,180				5.6	%			104,815				5.7	%			71,822				4.1	%			0.3	%			46.4	%
Consumer loans			1,331				0.1	%			1,574				0.2	%			2,902				0.2	%			-15.4	%			-54.1	%
Total Gross Loans		$	1,835,928				100.0	%		$	1,834,998				100.0	%		$	1,749,005				100.0	%			0.1	%			5.0	%
Less: Allowance for credit losses			(19,460)								(19,450)								(16,531)
Net deferred loan fees			(4,679)								(4,992)								(5,364)
Net Loans		$	1,811,789							$	1,810,556							$	1,727,110
DEPOSITS:
Non-interest bearing deposits		$	345,319				18.1	%		$	324,307				17.0	%		$	348,945				20.1	%			6.5	%			-1.0	%
Interest-bearing deposits:
Demand deposits			106,033				5.6	%			139,780				7.3	%			165,331				9.5	%			-24.1	%			-35.9	%
Savings and NOW deposits			124,049				6.5	%			64,337				3.4	%			46,036				2.7	%			92.8	%			169.5	%
Money market deposits			511,925				26.8	%			560,082				29.4	%			446,903				25.8	%			-8.6	%			14.5	%
Certificates of deposit $250,000 or more			541,772				28.4	%			535,676				28.1	%			467,892				27.0	%			1.1	%			15.8	%
Certificates of deposit less than $250,000			279,227				14.6	%			283,612				14.8	%			257,628				14.9	%			-1.5	%			8.4	%
Total Deposits		$	1,908,325				100.0	%		$	1,907,794				100.0	%		$	1,732,735				100.0	%			0.0	%			10.1	%
BORROWINGS:
Subordinated debt, net			72,138				100.0	%			73,039				100.0	%			72,741				100.0	%			-1.2	%			-0.8	%
Total Borrowings		$	72,138				100.0	%		$	73,039				100.0	%		$	72,741								-1.2	%			-0.8	%
Total Deposits and Borrowings		$	1,980,463							$	1,980,833							$	1,805,476								0.0	%			9.7	%
Core customer funding sources (1)		$	1,330,390				67.2	%		$	1,439,657				72.7	%		$	1,312,746				72.7	%			-7.6	%			1.3	%
Brokered and listing service sources (2)			577,935				29.2	%			468,137				23.6	%			419,989				23.3	%			23.5	%			37.6	%
Subordinated debt, net (3)			72,138				3.6	%			73,039				3.7	%			72,741				4.0	%			-1.2	%			-0.8	%
Total Funding Sources		$	1,980,463				100.0	%		$	1,980,833				100.0	%		$	1,805,476				100.0	%			0.0	%			9.7	%

(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 $87.8 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 March 31, 2025.
(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 March 31, 2025												For the three months ended March 31, 2024
		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)		$	1,838,358			$	31,111				6.86	%		$	1,728,761			$	30,582				7.10	%
Securities:
Taxable			53,143				420				3.21	%			56,001				435				3.12	%
Tax-exempt			35,200				333				3.84	%			37,420				342				3.66	%
Interest-bearing deposits at other financial institutions			86,715				946				4.42	%			66,253				889				5.38	%
Federal funds sold			24,975				223				3.62	%			25,740				293				4.57	%
Total interest-earning assets		$	2,038,391			$	33,033				6.57	%		$	1,914,175			$	32,541				6.82	%
Other assets			117,070												123,294
Total assets		$	2,155,461											$	2,037,469
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Interest-bearing demand deposits		$	111,413			$	1,048				3.81	%		$	146,248			$	1,814				4.98	%
Savings and NOW deposits			67,851				221				1.32	%			44,219				157				1.42	%
Money market deposits			537,733				5,276				3.98	%			433,654				5,092				4.71	%
Time deposits			798,007				9,031				4.59	%			710,019				8,808				4.98	%
Total interest-bearing deposits		$	1,515,004			$	15,576				4.17	%		$	1,334,140			$	15,871				4.77	%
Federal funds purchased			5,610				65				4.70	%			7,476				107				5.74	%
FHLB advances			—				—				—				3,297				46				5.60	%
Subordinated debt, net			73,043				812				4.51	%			72,703				820				4.52	%
Total interest-bearing liabilities		$	1,593,657			$	16,453				4.19	%		$	1,417,616			$	16,844				4.77	%
Demand deposits and other liabilities			353,711												397,753
Total liabilities		$	1,947,368											$	1,815,369
Stockholders' Equity			208,093												222,100
Total Liabilities and Stockholders' Equity		$	2,155,461											$	2,037,469
Interest Rate Spread											2.38	%											2.05	%
Net Interest Income						$	16,580											$	15,697
Net Interest Margin											3.30	%											3.29	%

(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 "Unaudited Reconciliation of Certain Non-GAAP Financial Measures" 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
		March 31,
		2025				2024
Per share Data and Shares Outstanding
Earnings per common share (basic and diluted)		$	0.25			$	0.36
Book value per common share		$	23.67			$	25.72
Tangible book value per common share(2)		$	23.67			$	23.66
Weighted average common shares (basic and diluted)			7,636,191				7,611,990
Common shares outstanding at end of period			7,703,197				7,614,090
Performance Ratios
Return on average assets (annualized)			0.46	%			0.65	%
Return on average equity (annualized)			4.78	%			5.97	%
Return on average common equity (annualized)			5.50	%			6.80	%
Yield on earning assets (FTE) (2) (annualized)			6.57	%			6.82	%
Cost of interest bearing liabilities (annualized)			4.19	%			4.77	%
Net interest spread (FTE)(2) (annualized)			2.38	%			2.05	%
Net interest margin (FTE)(2) (annualized)			3.30	%			3.29	%
Non-interest income as a percentage of average assets (annualized)			0.18	%			0.16	%
Non-interest expense to average assets (annualized)			2.69	%			2.46	%
Efficiency ratio(3)			82.03	%			76.01	%
Asset Quality
Allowance for credit losses (ACL)
Beginning balance, ACL - loans		$	19,450			$	16,506
Add: recoveries			10				2
Less: charge-offs			—				(141)
Add: provision for credit losses - loans			—				164
Ending balance, ACL - loans		$	19,460			$	16,531
Beginning balance, reserve for unfunded commitment (RUC)		$	287			$	1,009
Add: recovery of unfunded commitments, net			—				(359)
Ending balance, RUC		$	287			$	650
Total allowance for credit losses		$	19,747			$	17,181
Allowance for credit losses on loans to total gross loans			1.06	%			0.95	%
Allowance for credit losses on loans to non-performing loans			89.82	%		1.78X
Net charge-offs to average gross loans (annualized)			0.00	%			0.03	%
Concentration Ratios
Commercial real estate loans to total capital (4)			388.24	%			364.65	%
Construction loans to total capital (5)			115.56	%			130.06	%
Past due and Non-performing Assets
Loans 30-89 days past due and accruing to total gross loans			2.19	%			0.22	%
Loans 90 days past due and accruing to total gross loans			0.00	%			0.51	%
Non-accrual loans to total gross loans			1.18	%			0.53	%
Other real estate owned		$	—			$	—
Non-performing loans		$	21,665			$	9,263
Non-performing assets to total assets			0.97	%			0.45	%
Regulatory Capital Ratios (Bank only) (1)
Total risk-based capital ratio			15.83	%			17.05	%
Tier 1 risk-based capital ratio			14.78	%			16.12	%
Leverage ratio			12.90	%			14.54	%
Common equity tier 1 ratio			14.78	%			16.12	%
Other information
Common shares closing stock price		$	16.72			$	18.16
Tangible equity / tangible assets (2)			9.43	%			10.10	%
Average tangible equity / average tangible assets (2)			9.65	%			10.24	%
Number of full time equivalent employees			182				191
Number of full service branch offices			6				6

(1)	Regulatory capital ratios as of March 31, 2025 are preliminary
(2)	Refer to "Unaudited Reconciliation of Certain Non-GAAP Financial Measures" 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 March 31,
		2025				2024
Net interest margin (FTE)
Net interest income (GAAP)		$	16,510			$	15,625
FTE adjustment on tax-exempt securities			70				72
Net interest income (FTE) (non-GAAP)			16,580				15,697
Average interest earning assets			2,038,391				1,914,175
Net interest margin (GAAP)			3.28	%			3.27	%
Net interest margin (FTE) (non-GAAP)			3.30	%			3.29	%
		For the three months ended March 31,
		2025				2024
Yield on earning assets (FTE)
Total interest income (GAAP)		$	32,963			$	32,469
FTE adjustment on tax-exempt securities			70				72
Total interest income (FTE) (non-GAAP)			33,033				32,541
Average interest earning assets			2,038,391				1,914,175
Yield on earning assets (GAAP)			6.56	%			6.80	%
Yield on earning assets (FTE) (non-GAAP)			6.57	%			6.82	%
		For the three months ended March 31,
		2025				2024
Net interest spread (FTE)
Yield on earning assets (GAAP)			6.56	%			6.80	%
Yield on earning assets (FTE) (non-GAAP)			6.57	%			6.82	%
Yield on interest-bearing liabilities (GAAP)			4.19	%			4.77	%
Net interest spread (GAAP)			2.37	%			2.03	%
Net interest spread (FTE) (non-GAAP)			2.38	%			2.05	%
		As of March 31,
		2025				2024
Tangible common stockholders' equity
Total stockholders equity (GAAP)		$	209,618			$	223,121
Less: intangible assets			—				(15,691)
Tangible stockholders' equity (non-GAAP)			209,618				207,430
Less: preferred stock			(27,263)				(27,263)
Tangible common stockholders' equity (non-GAAP)			182,355				180,167
Common shares outstanding			7,703,197				7,614,090
Tangible book value per common share (non-GAAP)		$	23.67			$	23.66
		As of March 31,
		2025				2024
Stockholders equity, adjusted
Total stockholders equity (GAAP)		$	209,618			$	223,121
Less: intangible assets			—				(15,691)
Total tangible stockholders equity (non-GAAP)			209,618				207,430
		As of March 31,
		2025				2024
Total tangible assets
Total assets (GAAP)		$	2,222,845			$	2,070,015
Less: intangible assets			—				(15,691)
Total tangible assets (non-GAAP)			2,222,845				2,054,324
		For the three months ended March 31,
		2025				2024
Average tangible stockholders' equity
Total average stockholders' equity (GAAP)		$	208,093			$	222,100
Less: average intangible assets			—				(15,078)
Total average tangible stockholders' equity (non-GAAP)			208,093				207,022
		For the three months ended March 31,
		2025				2024
Average tangible assets
Total average assets (GAAP)		$	2,155,461			$	2,037,469
Less: average intangible assets			—				(15,078)
Total average tangible assets (non-GAAP)			2,155,461				2,022,391

 

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

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SOURCE MainStreet Bancshares, Inc.

FAQ

What is MainStreet Bancshares (MNSB) Q1 2025 net interest margin and how did it change?

MNSB's net interest margin was 3.30% in Q1 2025, increasing by 34 basis points from the previous quarter.

How much are MainStreet Bancshares (MNSB) nonperforming loans and what is the outlook?

Nonperforming loans are $21.7 million, with $11.2 million expected to pay off at par in Q2 2025 following a court-approved resolution.

What happened to MainStreet Bancshares (MNSB) Avenu technology initiative?

The Avenu technology initiative was discontinued due to extended timeline for expected return on invested capital.

What are MainStreet Bancshares (MNSB) Q1 2025 total deposits and funding costs?

Total deposits remained stable at $1.9 billion, with funding costs improving by 24 basis points to 3.49%.

What is MainStreet Bancshares (MNSB) earnings per share for Q1 2025?

MNSB reported earnings per common share of $0.25 for Q1 2025.