Financial Performance - For Q2 2025, MainStreet Bancshares reported net income of $4,590,000, a 75.4% increase from $2,618,000 in Q2 2024[10]. - Earnings per common share for Q2 2025 were $0.53, up from $0.27 in Q2 2024, representing a 96.3% increase[10]. - Comprehensive income for the first half of 2025 was $7,290,000, compared to $5,358,000 in the same period of 2024, indicating a 36.1% increase[11]. - Net income for the six months ended June 30, 2025, was $7,043,000, an increase from $5,923,000 in the same period of 2024, representing a growth of 18.9%[15]. - Net income available to common shareholders for the six months ended June 30, 2025, was $5,965,000, up from $4,845,000 in 2024, reflecting a 23.1% growth[97]. Interest Income and Expenses - Total interest income for the first half of 2025 was $67,249,000, up 2.0% from $65,905,000 in the same period of 2024[10]. - Total interest expense decreased to $15,496,000 for the three months ended June 30, 2025, down from $17,871,000 in 2024, a reduction of 13.3%[10]. - Total interest income for the Core Banking segment for the three months ended June 30, 2025, was $34,903,000, while total consolidated interest expense was $15,496,000, resulting in a segment gross profit of $19,856,000[100]. Non-Interest Income and Expenses - Non-interest income rose to $1,066,000 in Q2 2025, a 39.5% increase from $764,000 in Q2 2024[10]. - Total non-interest expense increased to $14,745,000 in Q2 2025, compared to $12,835,000 in Q2 2024, marking a 14.9% rise[10]. - The company incurred nonrecurring costs related to pivoting away from certain BaaS services during the six months ended June 30, 2025, impacting the Financial Technology segment's performance[102]. Credit Losses and Provisions - The provision for credit losses on loans showed a recovery of $528,000 in Q2 2025, compared to a provision of $931,000 in Q2 2024[10]. - The allowance for credit losses on loans was $19.057 million as of June 30, 2025, compared to $19.450 million at the end of 2024, showing a decrease of approximately 2%[49]. - The company reported a provision for credit losses of $(528,000) for the six months ended June 30, 2025, reflecting recoveries exceeding charge-offs[49]. Loan Portfolio and Performance - Total gross loans amounted to $1.791 billion as of June 30, 2025, a decrease from $1.835 billion as of December 31, 2024, reflecting a reduction of approximately 2.4%[45]. - The net loans as of June 30, 2025, were $1.767 billion, down from $1.811 billion at the end of 2024, indicating a decline of about 2.4%[45]. - Nonaccrual loans totaled $7.169 million as of June 30, 2025, compared to $21.650 million at the end of 2024, reflecting a significant reduction in nonperforming assets[49]. - The company modified loans totaling $20,433,000 during the six months ended June 30, 2025, with 4.2% of the total loan basis related to commercial and industrial loans[61]. Equity and Cash Position - Total stockholders' equity increased to $213,470,000 as of June 30, 2025, up from $207,991,000 at the end of 2024, reflecting a growth of 2.1%[13]. - Cash and cash equivalents at the end of the period were $133,284,000, compared to $91,459,000 at the end of June 2024, indicating a significant increase of 45.7%[15]. - The company reported a net cash provided by operating activities of $2,645,000 for the six months ended June 30, 2025, down from $4,817,000 in the same period of 2024[15]. Securities and Investments - The company did not record an allowance for credit losses on its securities available-for-sale or held-to-maturity portfolio as of June 30, 2025, and December 31, 2024[34]. - As of June 30, 2025, the total fair value of available-for-sale investment securities was $56,138,000, with an amortized cost of $65,831,000, resulting in unrealized losses of $9,718,000[35]. - The total fair value of held-to-maturity investment securities as of June 30, 2025, was $14,582,000, with an amortized cost of $14,846,000, reflecting unrealized losses of $275,000[37]. Regulatory and Compliance - The Company completed the registration of its common stock with the SEC on April 18, 2019, and is now classified as an accelerated filer effective with the filing of the December 31, 2024 Annual Report on Form 10-K[17]. - The Company was approved to list shares of its common stock on the Nasdaq Capital Market under the symbol "MNSB" as of April 22, 2019[18]. - The financial statements are unaudited but include all necessary adjustments for fair presentation, with balances as of December 31, 2024, derived from audited consolidated financial statements[22]. Tax Credits and Community Development - MainStreet Community Capital, LLC, a wholly owned subsidiary, was established in September 2021 to provide loans and investments in Low-Income Communities, certified as a registered Community Development Entity in January 2022[19]. - The company has transitioned to the proportional amortization method for New Market Tax Credit investments as of January 1, 2024[42]. - As of June 30, 2025, the balance of investments in New Market Tax Credits (NMTC) was $11.8 million, up from $9.4 million as of December 31, 2024, while Low-Income Housing Tax Credits (LIHTC) investments decreased slightly to $7.3 million from $7.6 million[43].
MAINSTREET BAN(MNSBP) - 2025 Q2 - Quarterly Report