MainStreet Bancshares(MNSB) - 2025 Q1 - Quarterly Results

Financial Performance - MainStreet Bancshares reported a net income of $2.5 million for Q1 2025, with earnings per share at $0.25[1] - Net income available to common shareholders was $1,914 million, a recovery from a loss of $16,706 million in the previous quarter[12] - Earnings per common share for the quarter was $0.25, compared to a loss of $2.20 in the previous quarter[12] - Earnings per common share (basic and diluted) decreased to $0.25 in Q1 2025 from $0.36 in Q1 2024, a decline of approximately 30.6%[20] - The return on average assets (annualized) was 0.46% for Q1 2025, down from 0.65% in Q1 2024[20] Interest Income and Margin - Total interest income for the three months ended March 31, 2025, was $32,963 million, a decrease from $35,119 million in the previous quarter[12] - Net interest income after provision for credit losses was $16,510 million, compared to $12,634 million in the previous quarter, reflecting a significant recovery[12] - For the three months ended March 31, 2025, net interest income was $16,580,000, compared to $15,697,000 for the same period in 2024, reflecting an increase in net interest margin to 3.30% from 3.29%[18] - Net interest income (GAAP) for Q1 2025 was $16,510 million, an increase from $15,625 million in Q1 2024, representing a growth of 5.67%[23] - Total interest income (GAAP) for Q1 2025 reached $32,963 million, compared to $32,469 million in Q1 2024, reflecting an increase of 1.52%[23] - Net interest margin (GAAP) improved to 3.28% in Q1 2025 from 3.27% in Q1 2024[23] - The net interest margin increased to 3.30%, up 34 basis points from the previous quarter, driven by the replacement of higher-cost deposits[2] Loans and Deposits - Total deposits remained stable at $1.9 billion, with funding costs improving by 24 basis points to 3.49%[2] - The loan-to-deposit ratio was 96%, indicating efficient utilization of deposit funds for lending[2] - Total gross loans increased slightly to $1,835,928 million, with commercial real estate loans growing by 4.3% quarter-over-quarter[14] - Total deposits remained stable at $1,908,325 million, with a notable increase in savings and NOW deposits by 92.8% compared to the previous quarter[14] - Nonperforming loans held steady at $21.7 million, with an additional $11.2 million expected to pay off in Q2 2025[3] - Non-performing loans rose to $21,665,000 in Q1 2025, compared to $9,263,000 in Q1 2024, marking an increase of 134.5%[20] Assets and Capital - Total assets were reported at $2.2 billion, with gross loans stable at $1.8 billion[3] - The total assets as of March 31, 2025, were $2,155,461,000, up from $2,037,469,000 in 2024, indicating a growth of approximately 5.8%[18] - Total assets (GAAP) grew to $2,222,845 million as of March 31, 2025, compared to $2,070,015 million in 2024, indicating an increase of 7.37%[23] - The total risk-based capital ratio decreased to 15.83% as of March 31, 2025, from 17.05% in the previous year[20] Expenses and Efficiency - Total non-interest expenses decreased significantly to $14,314 million from $34,431 million in the previous quarter, indicating improved cost management[12] - The efficiency ratio increased to 82.03% in Q1 2025 from 76.01% in Q1 2024, indicating a decline in operational efficiency[20] Strategic Initiatives - The Avenu technology initiative was discontinued due to an extended timeline for expected returns on invested capital[4] - MainStreet Bank operates six branches and offers a fully integrated online and mobile banking solution[4] - The bank continues to focus on enhancing customer experience through various lending products and services[5] - MainStreet Bank was the first community bank in the D.C. area to provide a full online business banking solution[6]