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MainStreet Bancshares(MNSB) - 2024 Q4 - Annual Results
MNSBMainStreet Bancshares(MNSB)2025-01-27 13:00

Financial Performance - MainStreet Bancshares reported a loss of 9.98millionfor2024duetononrecurringimpairmentofcapitalizedintangiblesoftwareandresolutionofnonperformingassets[1].−Thecompanyreportedanetlossof9.98 million for 2024 due to nonrecurring impairment of capitalized intangible software and resolution of nonperforming assets[1]. - The company reported a net loss of 9,980 thousand, contrasting with a net income of 26,585thousandinthepreviousyear[17].−Earningspercommonsharewerereportedat26,585 thousand in the previous year[17]. - Earnings per common share were reported at (1.60), down from 3.25,indicatingasubstantialdecline[17].−Thecompany′sreturnonaverageassets(annualized)forthethreemonthsendedDecember31,2024,was(2.80)3.25, indicating a substantial decline[17]. - The company's return on average assets (annualized) for the three months ended December 31, 2024, was (2.80)%, compared to 1.02% for the same period in 2023[27]. - Net income (loss), as reported, for Q4 2024 was (16,167) million, compared to a profit of 5,146millioninQ42023[30].−Adjustednetincome(loss)forQ42024was5,146 million in Q4 2023[30]. - Adjusted net income (loss) for Q4 2024 was (353) million, while adjusted net income for Q4 2023 was 5,146million[30].−Theannualizedreturnonaverageassets(ROAA),asreported,for2024was(0.47)5,146 million[30]. - The annualized return on average assets (ROAA), as reported, for 2024 was (0.47)%, compared to 1.38% in 2023[30]. Revenue and Income - Total interest income for the year-to-date increased to 134,615 thousand, up from 124,421thousandinthepreviousyear,representinganincreaseof0.96124,421 thousand in the previous year, representing an increase of 0.96%[17]. - Total non-interest income totaled 3,252 thousand, slightly down from 3,340thousand,reflectingadecreaseof2.633,340 thousand, reflecting a decrease of 2.63%[17]. - Net interest income after provision for credit losses decreased to 55,811 thousand from 75,100thousand,adeclineof25.775,100 thousand, a decline of 25.7%[17]. - Net interest income for the year ended December 31, 2024, was 62,865 thousand, a decrease from 77,025thousandin2023,reflectingadeclineof18.477,025 thousand in 2023, reflecting a decline of 18.4%[25]. - Net interest income (GAAP) for Q4 2024 was 16,041 million, down from 17,311millioninQ42023,representingadecreaseof7.317,311 million in Q4 2023, representing a decrease of 7.3%[30]. - Total interest income (GAAP) for the year 2024 was 134,615 million, an increase of 8.5% compared to 124,421millionin2023[30].AssetsandLiabilities−TotalassetsasofDecember31,2024,were124,421 million in 2023[30]. Assets and Liabilities - Total assets as of December 31, 2024, were 2.23 billion, reflecting a stable financial position[15]. - The allowance for credit losses on loans increased to 19,450thousandasofDecember31,2024,upfrom19,450 thousand as of December 31, 2024, up from 16,506 thousand in 2023, indicating a rise of 11.7%[27]. - Total gross loans increased to 1,834,988million,reflectinga2.01,834,988 million, reflecting a 2.0% increase from the previous quarter and a 6.2% increase year-over-year[19]. - Net loans amounted to 1,810,556 million, showing a quarter-over-quarter increase of 2.0%[19]. - The total funding sources increased to 1,980,833million,reflectinga0.71,980,833 million, reflecting a 0.7% increase from the previous quarter and an 11.7% increase year-over-year[19]. Deposits and Funding - Total deposits grew by 13% year-over-year to 1.9 billion, with core deposits increasing by 187million[2].−Totaldepositsreached187 million[2]. - Total deposits reached 1,907,794 million, a slight increase of 0.7% from the previous quarter and a significant 13.1% increase year-over-year[19]. - Non-interest bearing deposits decreased by 6.7% quarter-over-quarter and 11.1% year-over-year, totaling 324,307million[19].−Interest−bearingdepositssawanotableincreaseinmoneymarketdeposits,whichroseby23.9324,307 million[19]. - Interest-bearing deposits saw a notable increase in money market deposits, which rose by 23.9% quarter-over-quarter and 26.7% year-over-year, reaching 560,082 million[19]. Operational Efficiency - The efficiency ratio for the year ended December 31, 2024, was 110.85%, significantly higher than 56.96% in 2023, indicating increased operational costs relative to income[27]. - The efficiency ratio, as reported, for Q4 2024 was 204.36%, significantly higher than 61.29% in Q4 2023[31]. Capital and Equity - Total stockholders' equity decreased to 207.99millionbyyear−end2024,downfrom207.99 million by year-end 2024, down from 226.05 million in the previous quarter[15]. - The total risk-based capital ratio as of December 31, 2024, was 15.69%, down from 17.18% in 2023, reflecting a decrease in capital adequacy[27]. - Tangible common stockholders' equity as of December 31, 2024, was 180,728million,slightlyupfrom180,728 million, slightly up from 179,597 million in 2023[31]. - The tangible equity to tangible assets ratio decreased to 9.33% in 2024 from 10.24% in 2023, indicating a decline in financial stability[28]. Market and Stock Performance - The closing stock price on December 31, 2024, was 18.10,adeclinefrom18.10, a decline from 24.81 at the end of 2023, representing a drop of 27.1%[27]. Employee Metrics - The number of full-time equivalent employees increased to 204 in 2024, up from 186 in 2023, indicating a growth in workforce[28]. Interest Rates and Economic Environment - The interest rate environment has normalized with the FOMC cutting rates by a total of 1.0% in 2024, benefiting borrowers[3]. - The interest rate spread decreased to 1.99%, down from 2.39% year-over-year[23]. - The yield on earning assets (GAAP) for Q4 2024 was 6.45%, down from 6.83% in Q4 2023[31].