Group 1: Financial Performance - MainStreet Bank reported a quarterly loss of $0.04 per share, aligning with the Zacks Consensus Estimate, compared to earnings of $0.77 per share a year ago [1] - The bank's revenues for the quarter ended September 2024 were $16.23 million, surpassing the Zacks Consensus Estimate by 1.24%, but down from $19.54 million year-over-year [2] - Over the last four quarters, MainStreet Bank has not exceeded consensus EPS estimates and has topped consensus revenue estimates only once [2][3] Group 2: Stock Performance and Outlook - MainStreet Bank shares have declined approximately 27.5% since the beginning of the year, contrasting with the S&P 500's gain of 21.8% [3] - The current consensus EPS estimate for the upcoming quarter is $0.24 on revenues of $16.65 million, and for the current fiscal year, it is $0.95 on revenues of $65.1 million [7] - The estimate revisions trend for MainStreet Bank is currently unfavorable, resulting in a Zacks Rank 5 (Strong Sell), indicating expected underperformance in the near future [6] Group 3: Industry Context - The Banks - Northeast industry, to which MainStreet Bank belongs, is currently ranked in the top 14% of over 250 Zacks industries, suggesting a favorable industry outlook [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Performance - MainStreet Bancshares reported a loss of -$0.04 per common share for Q3 2024, with year-to-date earnings per common share at $0.60[1]. - Net income for the year-to-date September 30, 2024, was $6,187,000, a significant decrease from $21,438,000 in 2023, representing a decline of 71.1%[11]. - Earnings per common share decreased to $0.60 for the year-to-date September 30, 2024, down from $2.64 in 2023, a decline of 77.3%[11]. - Earnings per common share (basic and diluted) decreased to $(0.04), compared to $0.77 in the same period last year[17]. - Return on average assets (annualized) dropped to 0.05%, down from 1.30% year-over-year[17]. Interest Income and Margin - The annualized net interest margin for Q3 2024 was 3.05%, impacted by $984,000 in reversed accrued interest income[2]. - Total interest income increased to $99,496,000 for the year-to-date September 30, 2024, compared to $91,239,000 for the same period in 2023, representing an increase of 9.2%[11]. - Net interest income after provision for credit losses decreased to $43,177,000 for the year-to-date September 30, 2024, down from $58,253,000 in 2023, a decline of 26.0%[11]. - Net interest income for the nine months ended September 30, 2024, was $46,754, compared to $59,641 for the same period in 2023, reflecting a decrease in net interest margin from 4.34% to 3.19%[15]. - Net interest income (GAAP) for the three months ended September 30, 2024, was $15,343 thousand, down from $18,772 thousand in the same period of 2023, representing a decline of approximately 18.4%[20]. - Net interest margin (GAAP) decreased to 3.04% for the three months ended September 30, 2024, compared to 3.99% for the same period in 2023, a drop of about 23.8%[20]. Loan and Credit Quality - The company charged off $1.9 million in nonperforming loans during the quarter, with a provision expense allocation of $1 million[2]. - The total principal losses incurred year-to-date 2024 approximated just 0.1% of total loans, indicating strong credit quality[3]. - Non-performing loans amounted to $28,264 thousand, significantly higher than $325 thousand in the same period last year[17]. - The allowance for credit losses increased to $18,327 as of September 30, 2024, compared to $17,098 in June 30, 2024, and $15,626 in September 30, 2023[12]. - Total allowance for credit losses reached $18,472 thousand, compared to $17,178 thousand in the previous year[17]. Deposits and Funding - Total deposits increased to $1.9 billion, with core deposits reaching $1.47 billion, accounting for 78% of total deposits[3]. - Total deposits reached $1,893,669 as of September 30, 2024, reflecting a 7.9% increase from $1,755,363 in June 30, 2024, and a 12.5% increase from $1,683,190 in September 30, 2023[12]. - Non-interest bearing core deposits grew by $33 million during the quarter[4]. - Core customer funding sources increased to $1,471,350, representing 74.8% of total funding sources, up from 75.3% in June 30, 2024, and significantly higher than 65.2% in September 30, 2023[12]. Expenses and Efficiency - Total non-interest income was $2,446,000 for the year-to-date September 30, 2024, compared to $2,583,000 in 2023, reflecting a decrease of 5.3%[11]. - Total non-interest expenses rose to $38,536,000 for the year-to-date September 30, 2024, up from $34,279,000 in 2023, an increase of 12.9%[11]. - The efficiency ratio increased to 81.45%, compared to 58.74% in the previous year[17]. Assets and Equity - Total assets as of September 30, 2024, were $2.22 billion, up from $2.09 billion as of June 30, 2024[10]. - Stockholders' equity increased to $226.05 million as of September 30, 2024, compared to $224.72 million at the end of Q2 2024[10]. - Total stockholders' equity (GAAP) increased to $226,051 thousand as of September 30, 2024, compared to $213,743 thousand as of September 30, 2023, reflecting a growth of approximately 5.8%[19]. - Tangible common stockholders' equity (non-GAAP) rose to $179,907 thousand as of September 30, 2024, up from $173,107 thousand as of September 30, 2023, indicating an increase of about 4.6%[19]. Market and Stock Performance - Closing stock price was $18.45, down from $20.54 in the previous year[17]. - The weighted average number of common shares increased to 7,607,431 for the year-to-date September 30, 2024, compared to 7,521,426 in 2023, an increase of 1.1%[11]. New Initiatives - The Avenu Banking-as-a-Service (BaaS) solution launched just before the end of Q3 2024, aimed at diversifying revenue streams[4]. - Avenu's first fintech client is expected to go live in early November, with plans for four additional fintechs to follow[5].

Company Overview - MainStreet Bank (MNSB) is expected to report a year-over-year decline in earnings due to lower revenues for the quarter ended September 2024, with a consensus estimate of a loss of $0.04 per share, reflecting a -105.2% change from the previous year [2][8] - Revenues are anticipated to be $16.03 million, which is an 18% decrease compared to the same quarter last year [2] Earnings Estimates and Revisions - The consensus EPS estimate has been revised down by 33.33% over the last 30 days, indicating a reassessment by analysts [3] - The Most Accurate Estimate for MainStreet Bank aligns with the Zacks Consensus Estimate, resulting in an Earnings ESP of 0% [6][7] Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that the lack of recent analyst revisions makes it challenging to predict an earnings beat for MainStreet Bank [7] - Historical performance shows that MainStreet Bank has not surpassed consensus EPS estimates in the last four quarters, with a previous surprise of -15.63% when it reported earnings of $0.27 per share against an expectation of $0.32 [8] Comparative Industry Analysis - In comparison, CB Financial Services (CBFV) is expected to post earnings of $0.51 per share for the same quarter, indicating a -1.9% year-over-year change, with revenues projected at $12.6 million, down 4% from the previous year [10] - CB Financial Services has an Earnings ESP of -1.96% and a Zacks Rank of 4 (Sell), making it difficult to predict an earnings beat [10]

Financial Performance - Net income for the three months ended June 30, 2024, was $2,618 thousand, down 62.3% from $6,946 thousand in the same period of 2023[9]. - Net income for the six months ended June 30, 2024, was $5,923,000, compared to $15,098,000 for the same period in 2023, representing a decrease of 60.8%[20]. - Comprehensive income for the three months ended June 30, 2024, was $2,505 thousand, down from $6,264 thousand in the same period of 2023, indicating a decline of 60%[11]. - Basic earnings per share for the three months ended June 30, 2024, was $0.27, a decrease of 68.2% from $0.85 in the same period of 2023[9]. - Net income decreased by $4.3 million to $2.6 million for the three months ended June 30, 2024, down from $6.9 million for the same period in 2023[121]. Asset and Deposit Growth - Total assets increased to $2,093,746 thousand as of June 30, 2024, up from $2,035,432 thousand at December 31, 2023, representing a growth of approximately 2.8%[6]. - Total deposits rose to $1,755,363 thousand as of June 30, 2024, compared to $1,686,127 thousand at December 31, 2023, reflecting an increase of approximately 4.1%[6]. - Cash and cash equivalents at the end of the period were $91,459,000, down from $98,041,000 at the end of June 30, 2023, a decrease of 6.0%[20]. - The company experienced a net decrease in non-interest deposits of $49,970,000 for the six months ended June 30, 2024, compared to a net decrease of $161,697,000 in the same period of 2023[20]. - Core deposits grew by $124.5 million, or 9.9%, to $1.38 billion at June 30, 2024, compared to $1.25 billion at December 31, 2023[194]. Credit Losses and Loan Performance - Provision for credit losses on loans increased to $931 thousand for the three months ended June 30, 2024, compared to $617 thousand for the same period in 2023, indicating a rise of 50.9%[9]. - The allowance for credit losses on loans was $17,098,000 as of June 30, 2024, up from $16,506,000 at the end of 2023, reflecting a rise of approximately 3.6%[53]. - Non-performing loans increased to a balance of $20.7 million as of June 30, 2024, largely attributed to two relationships facing liquidity constraints[136]. - The total amount of classified loans in the Commercial and Industrial segment was $93.6 million, indicating potential areas for improvement[66]. - The total allowance for credit losses on loans to non-performing loans ratio was 82.63% as of June 30, 2024[192]. Interest Income and Expense - Net interest income for the three months ended June 30, 2024, was $15,289 thousand, a decrease of 20.3% compared to $19,271 thousand for the same period in 2023[9]. - Total interest income increased by $2.6 million, or 8.5%, to $33.3 million for the three months ended June 30, 2024, from $30.8 million for the same period in 2023[122]. - Interest expense increased by $6.6 million to $18.0 million for the three months ended June 30, 2024, from $11.4 million for the same period in 2023[127]. - The net interest margin compressed by 109 basis points from 4.24% for the three months ended June 30, 2023, to 3.15% for the same period in 2024[129]. - The average cost of deposits rose to 488 basis points for the three months ended June 30, 2024, compared to 350 basis points for the same period in 2023[128]. Non-Interest Income and Expenses - Total non-interest income for the three months ended June 30, 2024, was $873 thousand, a slight increase from $810 thousand in the same period of 2023[9]. - Non-interest expense increased to $12,668 thousand for the three months ended June 30, 2024, up from $10,852 thousand in the same period of 2023, marking a rise of 16.7%[9]. - Income tax expense decreased by $1.4 million, or 85.5%, to $238,000 for the three months ended June 30, 2024, driven by a decrease in income before income taxes of $5.7 million[143]. - Non-interest income decreased by $49,000, or 2.7%, to $1.8 million for the six months ended June 30, 2024, mainly due to lower deposit account service charges[164]. - Non-interest expense increased by $2.4 million, or 10.8%, to $25.0 million for the six months ended June 30, 2024, primarily due to increases in furniture and equipment expenses and salaries[165]. Regulatory and Compliance - The company is regulated under the Bank Holding Company Act of 1956 and is subject to supervision by the Federal Reserve[22]. - The total Risk-Based Capital ratio is 16.78%, significantly above the minimum target of 10.00%[184]. - The Common Equity Tier 1 Risk-Based Capital ratio stands at 15.85% as of June 30, 2024, exceeding the minimum target of 6.50%[184]. - The Tier 1 Risk-Based Capital ratio is 15.85% as of June 30, 2024, well above the minimum target of 8.00%[184]. - The company anticipates sufficient funds to meet current funding commitments despite potential outflows from deposits[205]. Strategic Initiatives and Future Outlook - The Company introduced Avenu, a Banking as a Service (BaaS) solution, which is expected to be deployed in 2024[27]. - The company created MainStreet Community Capital, LLC to apply for New Markets Tax Credit allocations to promote development in economically distressed areas[116]. - The company is focusing on market expansion and new product development to enhance future growth prospects[66]. - The company has capitalized $17.2 million in developing its SaaS solution for Banking as a Service (BaaS), which is expected to be deployed in the second half of 2024[115]. - The company operates six bank branches in Northern Virginia and Washington D.C., emphasizing personalized services to compete with larger banks[109].

Financial Data and Key Metrics Changes - The company reported a net loan increase of $51.7 million for the quarter and total deposits increased by $22.6 million [10] - The net interest margin (NIM) is reported at 3.15%, with a leveling off observed over the last several months [38][32] - The efficiency ratio stands at 78%, with a return on average assets of 0.5% and a return on average equity of 4.7% [38] Business Line Data and Key Metrics Changes - The loan portfolio reached $1.8 billion, with an average loan size of $1.9 million [12] - The company originated $73 million in new loans during the second quarter at a weighted average rate of 8.29% [14] - Non-performing loans account for 1.15% of total gross loans, with 76% of these loans related to two projects facing delays [42][79] Market Data and Key Metrics Changes - Core deposits now represent 78% of total deposits, with non-interest-bearing demand deposits comprising 27% of core deposits [39] - Non-core deposits represent 22% of total deposits, with a weighted average rate of 5.04% [39] Company Strategy and Development Direction - The company is focusing on a banking-as-a-service strategy, aiming to launch a fully compliant solution while managing regulatory risks [20][22] - The Avenue solution is expected to generate significant demand deposits, with projections of $225 million in year one and $1 billion by year five [18] - The management emphasizes a disciplined approach to loan pricing and risk management, with a focus on maintaining strong capital ratios [16][40] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the economic outlook and the potential for low-cost deposits in the second half of the year [32] - The company is committed to ensuring compliance and avoiding regulatory pitfalls, which could impact future growth [27][50] - The management believes that the Avenue solution will provide a competitive edge in the fintech space, despite delays in its launch [23][49] Other Important Information - The company has a strong liquidity position with $517 million available in secured advances and $129 million in unsecured lines [10] - The company repurchased 41,858 shares of common stock for an average price of $17.50, which was accretive to book value [45] Q&A Session Summary Question: Clarification on Avenue's regulatory situation - Management clarified that the recent regulatory actions do not indicate a problem at MainStreet but rather a need for more time to ensure compliance and customer acquisition [26][27] Question: Expectations for Avenue-related deposit growth - The company is still targeting $225 million in demand deposits by year-end, with hopes to reach at least $100 million [61] Question: Loan growth expectations for the remainder of the year - The company anticipates low single-digit loan growth for the year, with minor fluctuations in commercial real estate concentrations [77] Question: Concerns regarding non-performing assets - The increase in non-performing assets is primarily due to two projects nearing completion, with expected resolutions soon [79] Question: Guidance on expense growth and Avenue's impact - The company provided guidance for a 2% monthly expense run rate for the remainder of 2024, with reassessment planned for future quarters [80][81]

MainStreet Bank (MNSB) came out with quarterly earnings of $0.27 per share, missing the Zacks Consensus Estimate of $0.32 per share. This compares to earnings of $0.85 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -15.63%. A quarter ago, it was expected that this company would post earnings of $0.52 per share when it actually produced earnings of $0.36, delivering a surprise of -30.77%. Over the last four quarters, the comp ...

Core Financial Performance - MainStreet Bancshares, Inc. reported a net income of $2.6 million for Q2 2024, with total deposits reaching $1.8 billion, marking a 10.2% increase from Q2 2023 [1] - Loan growth increased by 8.6% year-over-year, also reaching $1.8 billion [1] - The net interest margin for the quarter was reported at 3.15%, indicating a stable performance despite higher deposit costs [2] Loan and Deposit Growth - The increase in loans was primarily driven by a rise in demand for commercial and industrial borrowing, as well as owner-occupied commercial real estate lending [2] - Core customer funding sources now account for 78% of total deposits, reflecting a strong foundation for future growth [2] - Total deposits increased to $1.755 billion, with significant contributions from various deposit categories, including demand deposits and money market accounts [16] Risk Management and Asset Quality - The bank maintains a solid loan portfolio with net charge-offs representing only eight basis points of average gross loans, and nonperforming assets accounting for 0.99% of total assets [3] - The lending team is focused on careful underwriting and maintaining engagement with borrowers throughout their project lifecycle [4] Banking-as-a-Service (BaaS) Initiatives - MainStreet Bank is implementing enhancements to its Avenu platform, which connects partners and applications to its banking services, aiming to improve scalability and compliance [5][6] - Avenu targets fintechs and other innovators, positioning itself as a leading financial technology company owned by a community bank [5][6] Historical Context and Future Outlook - The bank has experienced nine quarters in the current interest rate cycle, with expectations of an improving net interest margin as strategic initiatives take effect [2] - The bank's focus on customer care and building new relationships is expected to support continued growth in both deposits and loans [2]

Exhibit 99.1 The Bank maintains a strong portfolio of earning assets, with very nominal AOCI exposure. The loan portfolio remains solid with net charge offs representing a mere eight basis points of average gross loans. Nonperforming assets account for 0.99% of total assets. "We continue to carefully underwrite each loan opportunity and the lending team remains engaged with each borrower throughout their project lifecycle. If a borrower experiences a challenge, we work with them to face that challenge promp ...

FAIRFAX, Va., June 4, 2024 /PRNewswire/ -- MainStreet Bank and its parent company, MainStreet Bancshares, Inc. (Nasdaq: MNSB & MNSBP), are pleased to announce that Executive Vice President and Chief Lending Officer Tom Floyd has been honored as one of the nation's best and brightest young bankers. Chief Lending Officer Is Named to Prestigious 40 under 40 List Tom Floyd, Chief Lending Officer of MainStreet Bank (PRNewsfoto/MainStreet Bancshares, Inc.) Floyd has worked in banking across the Washington metropo ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to to Commission file number: 001-38817 MainStreet Bancshares, Inc. (Exact Name of Registrant as Specified in Its Charter) Virginia 81-2871064 (State or Other Jurisdiction of Incorporation or Organization) (I.R.S. Employer Identification No.) 10089 ...