MainStreet Bancshares(MNSB) - 2024 Q3 - Quarterly Results

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].