Financial Performance - For the three months ended March 31, 2025, total interest income increased to $32,963,000, up from $32,469,000 in the same period of 2024, representing a growth of 1.5%[10] - Net income for the first quarter of 2025 was $2,453,000, a decrease of 25.9% compared to $3,305,000 in the first quarter of 2024[10] - Net interest income after provision for credit losses was $16,510,000 for Q1 2025, compared to $15,820,000 in Q1 2024, reflecting an increase of 4.4%[10] - Non-interest income rose to $939,000 in Q1 2025, up from $796,000 in Q1 2024, marking an increase of 17.9%[10] - Total non-interest expense increased to $14,314,000 in Q1 2025, compared to $12,481,000 in Q1 2024, which is an increase of 14.7%[10] - Earnings per common share for Q1 2025 were $0.25, down from $0.36 in Q1 2024, reflecting a decrease of 30.6%[10] - The company reported a comprehensive income of $2,792,000 for Q1 2025, slightly down from $2,853,000 in Q1 2024[11] - The company reported a segment profit of $3,135,000 for the Financial Core Banking segment for the three months ended March 31, 2025, compared to $4,135,000 in the same period of 2024, a decline of 24.2%[102] Cash and Equivalents - Cash and cash equivalents at the end of Q1 2025 were $202,640,000, down from $124,741,000 at the end of Q1 2024, a decrease of 62.5%[14] - Cash and cash equivalents decreased from $207,708,000 on December 31, 2024, to $202,640,000 on March 31, 2025, a decline of 2.6%[91] - Operating activities provided $1,451,000 in net cash for Q1 2025, down from $3,643,000 in Q1 2024[14] Credit Quality and Losses - The provision for credit losses on loans was $0 in Q1 2025, compared to $164,000 in Q1 2024, indicating an improvement in credit quality[10] - The allowance for credit losses is based on historical loss information and incorporates an estimate of lifetime expected credit losses, using a weighted average remaining life model[56] - The company reported no gross charge-offs for residential real estate loans during the current period[64] - The total amount of classified loans across all categories was $59,202, indicating potential credit risk[65] - The total allowance for credit losses on off-balance sheet credit exposure was $287,000 as of March 31, 2025, unchanged from December 31, 2024[69] - The allowance for credit losses for unfunded loan commitments was $650,000 as of March 31, 2024, down from $1,009,000 at December 31, 2023, reflecting a recovery of off-balance sheet credit losses of $359,000[71] Securities and Investments - As of March 31, 2025, the total fair value of available-for-sale investment securities was $55.935 million, down from $55.747 million as of December 31, 2024, reflecting a decrease in unrealized losses of $9.585 million[34] - The amortized cost of held-to-maturity (HTM) securities was $15.657 million as of March 31, 2025, compared to $16.078 million as of December 31, 2024, indicating a slight decrease in value[36] - The company recognized amortization expense of $501,000 for new market tax credit investments during the three-month period ended March 31, 2025, compared to $263,000 for the same period in 2024[42] - The total unrealized loss for available-for-sale securities was $9.585 million as of March 31, 2025, with significant contributions from collateralized mortgage-backed securities and municipal securities[39] Loan Portfolio - As of March 31, 2025, the total amortized cost basis of loans was $57,423 million, with significant contributions from non-owner occupied loans ($11,488 million), construction and land development loans ($28,374 million), and commercial & industrial loans ($8,880 million) [55] - The company modified loans totaling $4,272 million for borrowers experiencing financial difficulty, representing 4.1% of the total loan basis [60] - The company continues to monitor loan payments on performing and non-performing loans to determine payment defaults [60] - The total amount of pass loans in the construction and land development category was $344,816, indicating a healthy loan portfolio[65] Regulatory and Compliance - The Company is regulated under the Bank Holding Company Act of 1956 and is subject to supervision by the Federal Reserve[16] - The Company adopted ASU 2023-07 on December 31, 2024, which improves reportable segment disclosure requirements[26] - The Company does not expect the adoption of ASU 2023-06 to have a material impact on its consolidated financial statements[29] Stock and Equity - The balance of total stockholders' equity as of March 31, 2025, was $209,618,000, an increase from $223,121,000 as of March 31, 2024[13] - MainStreet Bancshares, Inc. is authorized to issue 15,000,000 shares of common stock with a par value of $4.00 per share and 2,000,000 shares of preferred stock at a par value of $1.00 per share[16] - The company repurchased common stock worth $446,000 in Q1 2025, compared to $419,000 in Q1 2024[14] Lease and Operating Costs - Lease liabilities as of March 31, 2025, were $6,349,000, a slight decrease from $6,474,000 as of December 31, 2024[99] - The weighted-average remaining lease term for operating leases was 143.2 months as of March 31, 2025, down from 145.4 months as of December 31, 2024[99] - The company incurred total lease costs of $174,000 for the three months ended March 31, 2025, slightly up from $171,000 for the same period in 2024[99]
MAINSTREET BAN(MNSBP) - 2025 Q1 - Quarterly Report