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MainStreet Bancshares(MNSB) - 2024 Q3 - Quarterly Results
MNSBMainStreet Bancshares(MNSB)2024-10-28 12:00

Financial Performance - MainStreet Bancshares reported a loss of -0.04percommonshareforQ32024,withyear−to−dateearningspercommonshareat0.04 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,asignificantdecreasefrom6,187,000, a significant decrease from 21,438,000 in 2023, representing a decline of 71.1%[11]. - Earnings per common share decreased to 0.60fortheyear−to−dateSeptember30,2024,downfrom0.60 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),comparedto(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 984,000inreversedaccruedinterestincome[2].−Totalinterestincomeincreasedto984,000 in reversed accrued interest income[2]. - Total interest income increased to 99,496,000 for the year-to-date September 30, 2024, compared to 91,239,000forthesameperiodin2023,representinganincreaseof9.291,239,000 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 58,253,000in2023,adeclineof26.058,253,000 in 2023, a decline of 26.0%[11]. - Net interest income for the nine months ended September 30, 2024, was 46,754, compared to 59,641forthesameperiodin2023,reflectingadecreaseinnetinterestmarginfrom4.3459,641 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 18,772thousandinthesameperiodof2023,representingadeclineofapproximately18.418,772 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 1million[2].−Thetotalprincipallossesincurredyear−to−date2024approximatedjust0.11 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 325thousandinthesameperiodlastyear[17].−Theallowanceforcreditlossesincreasedto325 thousand in the same period last year[17]. - The allowance for credit losses increased to 18,327 as of September 30, 2024, compared to 17,098inJune30,2024,and17,098 in June 30, 2024, and 15,626 in September 30, 2023[12]. - Total allowance for credit losses reached 18,472thousand,comparedto18,472 thousand, compared to 17,178 thousand in the previous year[17]. Deposits and Funding - Total deposits increased to 1.9billion,withcoredepositsreaching1.9 billion, with core deposits reaching 1.47 billion, accounting for 78% of total deposits[3]. - Total deposits reached 1,893,669asofSeptember30,2024,reflectinga7.91,893,669 as of September 30, 2024, reflecting a 7.9% increase from 1,755,363 in June 30, 2024, and a 12.5% increase from 1,683,190inSeptember30,2023[12].−Non−interestbearingcoredepositsgrewby1,683,190 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,representing74.81,471,350, 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 2,583,000in2023,reflectingadecreaseof5.32,583,000 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 34,279,000in2023,anincreaseof12.934,279,000 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 2.09billionasofJune30,2024[10].−Stockholders′equityincreasedto2.09 billion as of June 30, 2024[10]. - Stockholders' equity increased to 226.05 million as of September 30, 2024, compared to 224.72millionattheendofQ22024[10].−Totalstockholders′equity(GAAP)increasedto224.72 million at the end of Q2 2024[10]. - Total stockholders' equity (GAAP) increased to 226,051 thousand as of September 30, 2024, compared to 213,743thousandasofSeptember30,2023,reflectingagrowthofapproximately5.8213,743 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 173,107thousandasofSeptember30,2023,indicatinganincreaseofabout4.6173,107 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].