Form 8-K - Current report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): Date: January 27, 2025

MainStreet Bancshares, Inc.

(Exact name of Registrant as Specified in Its Charter)

Virginia	001-38817	81-2871064
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

10089 Fairfax Boulevard, Fairfax, VA		22030
(Address of Principal Executive Offices)		(Zip Code)

(703) 481-4567

(Registrant’s Telephone Number, Including Area Code)

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	MNSB	The Nasdaq Stock Market LLC
Depositary Shares (each representing a 1/40^th interest in a share of 7.50% Series A Fixed-Rate Non-Cumulative Perpetual Preferred Stock	MNSBP	The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition.

On January 27, 2025, MainStreet Bancshares, Inc. (the “Company”) issued a press release setting forth the Company’s fourth quarter and year ended December 31, 2024 unaudited financial results. A copy of the Company’s press release is attached hereto as Exhibit 99.1, is hereby incorporated by reference, and will be posted on the Company's website.

Item 7.01 Regulation FD Disclosure

On January 27, 2025, the Company made available an investor presentation analyzing its fourth quarter and year ended December 31, 2024 unaudited financial results. A copy of the Company’s investor presentation is attached hereto as Exhibit 99.2, is hereby incorporated by reference, and will be posted on the Company’s website.

The information furnished under Items 2.02, 7.01 and 9.01 of this Current Report on Form 8-K, including the exhibits, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, and it shall not be deemed incorporated by reference in any filing under the Exchange Act, or the Securities Act of 1933, as amended, except as expressly set forth by specific reference in such filing to this Form 8-K.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

Exhibit Number		Description
99.1		Press Release, dated January 27, 2025, with respect to the Company’s unaudited financial results for the fourth quarter and year ended December 31, 2024.
99.2		Investor Presentation dated January 27, 2025.
104		Cover Page Interactive Data File (embedded within the Inline XBRL document).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	MAINSTREET BANCSHARES, INC

Date: January 27, 2025	By:	/s/ Thomas J. Chmelik
		Name: Thomas J. Chmelik
		Title: Chief Financial Officer

Exhibit 99.1

PRESS RELEASE		Contact: Billy Freesmeier
January 27, 2025 8:00 AM ET		Chief of Staff
		(703) 481-4579

MainStreet Bancshares Inc. Reports 2024 Results

A challenging year ending with strong and stable asset quality and capital

Fairfax, VA., January 27, 2025 — MainStreet Bancshares, Inc. (Nasdaq: MNSB & MNSBP), the financial holding company for MainStreet Bank reported a loss of $9.98 million for 2024 resulting from the nonrecurring impairment of capitalized intangible software and the resolution of nonperforming assets. The Company remains strongly capitalized with good liquidity.

“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.com.

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.

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.

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

Exhibit 99.2

Document And Entity Information	Jan. 27, 2025
Document Information [Line Items]
Entity, Registrant Name	MainStreet Bancshares, Inc.
Document, Type	8-K
Document, Period End Date	Jan. 27, 2025
Entity, Incorporation, State or Country Code	VA
Entity, File Number	001-38817
Entity, Tax Identification Number	81-2871064
Entity, Address, Address Line One	10089 Fairfax Boulevard
Entity, Address, City or Town	Fairfax
Entity, Address, State or Province	VA
Entity, Address, Postal Zip Code	22030
City Area Code	703
Local Phone Number	481-4567
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity, Emerging Growth Company	false
Amendment Flag	false
Entity, Central Index Key	0001693577
CommonStock Custom [Member]
Document Information [Line Items]
Title of 12(b) Security	Common Stock
No Trading Symbol Flag	true
Security Exchange Name	NASDAQ
DepositaryShares Custom [Member]
Document Information [Line Items]
Title of 12(b) Security	Depositary Shares
Security Exchange Name	NASDAQ
Trading Symbol	MNSBP

MainStreet Bancshares (NASDAQ:MNSBP)
Historical Stock Chart
From Jan 2025 to Feb 2025

Click Here for more MainStreet Bancshares Charts.

MainStreet Bancshares (NASDAQ:MNSBP)
Historical Stock Chart
From Feb 2024 to Feb 2025

Market Data

News

Trading Tools

Markets

Discover

Hot Features

Follow Feed

Options Flow

Monitor

MNSBP MainStreet Bancshares Inc

MainStreet Bancshares Inc News

Your Recent History

Company

Business

Popular

Get The App

Trending Now

Toplists

Market Data

News

Trading Tools

Markets

Discover

Hot Features

Follow Feed

Options Flow

Monitor

MNSBP MainStreet Bancshares Inc

MainStreet Bancshares Inc News

Your Recent History

Company

Business

Popular

Get The App

Go Ad-Free