Financial Performance - MainStreet Bancshares, Inc. reported a net income of $4.52 million and earnings per share of $0.52 for Q3 2025, exceeding expectations of $4.48 million and $0.51 respectively[1] - Net income available to common shareholders was $9,943 million, a substantial increase from $4,570 million, representing a growth of 117.5%[10] - Earnings per common share increased to $1.29, compared to $0.60 in the previous year, reflecting a growth of 115%[10] - Earnings per common share for Q3 2025 was $0.52, compared to a loss of $0.04 in Q3 2024, marking a significant improvement[20] Asset and Liability Management - Total assets as of September 30, 2025, amounted to $2,124.79 million, a slight increase from $2,114.78 million in June 2025[8] - Total liabilities for the nine months ended September 30, 2025, were $1,924,312 thousand, compared to $1,861,205 thousand for the same period in 2024[18] - Stockholders' equity as of September 30, 2025, was $215,039 thousand, down from $225,645 thousand as of September 30, 2024[16] Interest Income and Margin - Total interest income for the year-to-date increased to $99,713 million, up from $99,496 million, reflecting a growth of 0.2%[10] - Net interest income after provision for credit losses rose to $52,801 million, compared to $43,177 million, marking a significant increase of 22.5%[10] - Net interest income (GAAP) for Q3 2025 was $17,102 million, up from $15,343 million in Q3 2024, representing a 11.5% increase[23] - The net interest margin (FTE) increased to 3.42% in Q3 2025 from 3.05% in Q3 2024, suggesting improved profitability on earning assets[20] Credit Quality - The provision for credit losses decreased significantly to $(398) million from $3,356 million, indicating improved credit quality[10] - The allowance for credit losses on loans to total gross loans was 1.04% as of September 30, 2025, up from 1.02% a year earlier, reflecting a cautious approach to credit risk[20] - Non-performing loans decreased to $23,386,000 in Q3 2025 from $28,264,000 in Q3 2024, showing improvement in asset quality[20] Deposits and Funding - Total deposits reached $1,810.84 million as of September 30, 2025, compared to $1,798.55 million in June 2025, reflecting a growth in customer deposits[8] - Non-interest bearing deposits were $324.72 million as of September 30, 2025, down from $330.05 million in June 2025[8] - Core customer funding sources decreased by 3.0% to $1,289,952 million compared to $1,329,804 million, indicating a shift in funding strategy[12] Operational Efficiency - The efficiency ratio improved to 69.50% in Q3 2025 from 81.45% in Q3 2024, indicating better cost management relative to income[20] - Total non-interest expenses rose to $41,726 million, an increase of 8.0% from $38,536 million, driven by higher salaries and employee benefits[10] - The number of full-time equivalent employees decreased to 174 in Q3 2025 from 201 in Q3 2024, indicating potential operational restructuring[20] Market Performance - The common shares closing stock price rose to $20.83 as of September 30, 2025, compared to $18.45 a year prior, reflecting positive market sentiment[20] - Common shares outstanding at the end of Q3 2025 were 7,703,579, slightly up from 7,602,783 in Q3 2024[20] Strategic Initiatives - The Board of Directors authorized a new stock repurchase program of up to $10.0 million, replacing the previous program announced in May 2022[2] - The company continues to focus on lending opportunities in government contracting, commercial real estate, and construction sectors[2]
MAINSTREET BAN(MNSBP) - 2025 Q3 - Quarterly Results