MainStreet Bancshares Inc. Reports Strong Second Quarter Earnings
Net Income Climbs on Net Interest Margin Expansion and Strategic Balance Sheet Management
FARIFAX, Va., July 22, 2025 /PRNewswire/ -- MainStreet Bancshares, Inc. (NASDAQ:MNSB, MNSBP)), the financial holding company for MainStreet Bank, reported a surging net income of $4.6 million and net interest margin of 3.75% for the quarter ended June 30, 2025, an increase of $2.1 million and 45 basis points from the previous quarter respectively. Net interest income expanded $2.8 million to $19.3 million and earnings per common share grew to $0.53 during the same period, outperforming market expectations. The Company continues to report strong asset quality and strong capital.
"The team's hard work, dedication and focus on our financial performance was proven with this quarter's results," said Jeff W. Dick, Chairman and CEO of MainStreet Bancshares, Inc. and MainStreet Bank. "We are resolute in building our core banking franchise."
"Our commitment to work with our customers is yielding the results we expected," said Tom Floyd, Chief Lending Officer of MainStreet Bank. "The loan portfolio is in great shape, largely due to our unwavering credit discipline and knowledge of the key players in the community."
"The loan to deposit ratio remained well utilized at 99%," said Alex Vari, Chief Financial Officer of MainStreet Bank. "We are focused on strategically managing our deposits, keeping them in lockstep with our loan funding needs. This directly contributed to the growth of our net interest margin."
The Company maintains an active share repurchase plan in place with approximately $3.1 million in available capacity and continues to evaluate share repurchases as part of the Company's strategic capital plan.
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)
June 30, 2025
March 31, 2025
December31, 2024*
September30, 2024
June 30, 2024
ASSETS
Cash and cash equivalents
Cash and due from banks
$
20,888
$
18,385
$
21,351
$
15,319
$
17,112
Interest-bearing deposits at other financialinstitutions
85,796
159,582
161,866
191,637
50,495
Federal funds sold
26,600
24,673
24,491
25,158
23,852
Total cash and cash equivalents
133,284
202,640
207,708
232,114
91,459
Investment securities available for sale, at fair value
56,138
55,935
55,747
58,489
57,605
Investment securities held to maturity, at amortizedcost, net of allowance for credit losses of $0 for allperiods
14,846
15,657
16,078
16,016
16,036
Restricted securities, at amortized cost
7,005
7,005
6,873
6,873
6,749
Loans, net of allowance for credit losses of $19,057,$19,460, $19,450, $18,327, and $17,098, respectively
1,767,432
1,811,789
1,810,556
1,775,558
1,778,840
Premises and equipment, net
16,569
13,020
13,287
13,571
13,787
Accrued interest and other receivables
15,023
9,607
11,311
11,077
11,916
Computer software, net of amortization
—
—
—
18,881
17,205
Bank owned life insurance
40,117
39,809
39,507
39,203
38,901
Other assets
64,367
67,383
67,031
52,817
61,248
Total Assets
$
2,114,781
$
2,222,845
$
2,228,098
$
2,224,599
$
2,093,746
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Non-interest bearing deposits
$
330,045
$
345,319
$
324,307
$
347,575
$
314,636
Interest-bearing demand deposits
124,090
106,033
139,780
197,527
179,513
Savings and NOW deposits
116,069
124,049
64,337
61,893
60,867
Money market deposits
463,904
511,925
560,082
451,936
476,396
Time deposits
764,439
820,999
819,288
834,738
723,951
Total deposits
1,798,547
1,908,325
1,907,794
1,893,669
1,755,363
Subordinated debt, net
71,238
72,138
73,039
72,940
72,841
Other liabilities
31,526
32,764
39,274
31,939
40,827
Total Liabilities
1,901,311
2,013,227
2,020,107
1,998,548
1,869,031
Stockholders' Equity:
Preferred stock
27,263
27,263
27,263
27,263
27,263
Common stock
29,825
29,810
29,466
29,463
29,452
Capital surplus
68,261
67,612
67,823
67,083
66,392
Retained earnings
95,585
92,305
91,150
108,616
109,651
Accumulated other comprehensive loss
(7,464)
(7,372)
(7,711)
(6,374)
(8,043)
Total Stockholders' Equity
213,470
209,618
207,991
226,051
224,715
Total Liabilities and Stockholders' Equity
$
2,114,781
$
2,222,845
$
2,228,098
$
2,224,599
$
2,093,746
*Derived from audited financial statements
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME (LOSS) INFORMATION
(In thousands, except share and per share data)
Year-to-Date
Three Months Ended
June 30, 2025
June 30, 2024
June 30, 2025
March 31, 2025
December 31, 2024
September 30, 2024
June 30, 2024
INTEREST INCOME:
Interest and fees on loans
$
63,554
$
62,238
$
32,443
$
31,111
$
31,323
$
31,615
$
31,655
Interest on investment securities
Taxable securities
851
865
431
420
431
397
430
Tax-exempt securities
530
538
267
263
262
294
268
Interest on interest-bearing deposits at other financial institutions
1,878
1,694
932
946
2,826
1,041
806
Interest on federal funds sold
436
570
213
223
277
244
277
Total interest income
67,249
65,905
34,286
32,963
35,119
33,591
33,436
INTEREST EXPENSE:
Interest on interest-bearing demand deposits
2,052
3,933
1,004
1,048
2,612
2,117
2,118
Interest on savings and NOW deposits
612
347
391
221
201
206
190
Interest on money market deposits
9,983
10,632
4,707
5,276
5,475
5,277
5,542
Interest on time deposits
17,626
17,819
8,595
9,031
10,003
9,543
9,010
Interest on federal funds purchased
65
298
—
65
—
277
191
Interest on Federal Home Loan Bank advances
—
46
—
—
—
—
—
Interest on subordinated debt
1,611
1,640
799
812
787
828
820
Total interest expense
31,949
34,715
15,496
16,453
19,078
18,248
17,871
Net interest income
35,300
31,190
18,790
16,510
16,041
15,343
15,565
Provision for (recovery of) credit losses
(543)
443
(543)
—
3,407
2,913
638
Net interest income after provision for (recovery of) credit losses
35,843
30,747
19,333
16,510
12,634
12,430
14,927
NON-INTEREST INCOME:
Deposit account service charges
1,068
959
538
530
481
557
490
Bank owned life insurance income
610
583
308
302
304
302
291
Gain on retirement of subordinated debt
128
—
68
60
—
—
—
Gain on valuation of equity securities
103
—
103
—
—
—
—
Net loss on securities called or matured
—
(48)
—
—
—
—
(48)
Other non-interest income
96
66
49
47
22
27
31
Total non-interest income
2,005
1,560
1,066
939
807
886
764
NON-INTEREST EXPENSES:
Salaries and employee benefits
16,664
14,972
8,279
8,385
8,253
7,250
7,484
Furniture and equipment expenses
2,157
1,875
1,141
1,016
830
931
940
Advertising and marketing
1,011
1,020
530
481
600
579
566
Occupancy expenses
714
849
318
396
358
407
415
Outside services
2,463
1,614
1,290
1,173
1,168
845
839
Administrative expenses
499
471
270
229
243
215
229
Computer software intangible impairment
—
—
—
—
19,721
—
—
Other operating expenses
5,551
4,515
2,917
2,634
3,258
2,992
2,362
Total non-interest expenses
29,059
25,316
14,745
14,314
34,431
13,219
12,835
Income (loss) before income tax expense (benefit)
8,789
6,991
5,654
3,135
(20,990)
97
2,856
Income tax expense (benefit)
1,746
1,068
1,064
682
(4,823)
(168)
238
Net income (loss)
7,043
5,923
4,590
2,453
(16,167)
265
2,618
Preferred stock dividends
1,078
1,078
539
539
539
539
539
Net income (loss) available to common shareholders
$
5,965
$
4,845
$
4,051
$
1,914
$
(16,706)
