MainStreet Bancshares(MNSB) - 2025 Q3 - Quarterly Report

Financial Performance - For the three months ended September 30, 2025, net interest income increased to $17,102,000, up from $15,343,000 in the same period of 2024, representing a growth of 11.4%[10] - Net income for the three months ended September 30, 2025, was $4,517,000, a substantial increase from $265,000 in the same period of 2024, representing a growth of 1,607.5%[10] - Earnings per common share for the three months ended September 30, 2025, were $0.52, compared to a loss of $(0.04) per share in the same period of 2024[10] - Comprehensive income for the three months ended September 30, 2025, was $5,560,000, compared to $1,934,000 in 2024, indicating an increase of 187.5%[12] - Net income for the nine months ended September 30, 2025, was $11,560,000, an increase from $6,187,000 in the same period of 2024, representing an 87.5% growth[15] - Net income available to common shareholders for the nine months ended September 30, 2025, was $9,943,000, up from $4,570,000 in 2024, indicating a year-over-year growth of 117%[95] Income and Expenses - Non-interest income for the nine months ended September 30, 2025, totaled $3,126,000, an increase from $2,446,000 in the same period of 2024, reflecting a growth of 27.8%[10] - Total non-interest expense decreased to $12,667,000 for the three months ended September 30, 2025, down from $13,219,000 in 2024, a reduction of 4.2%[10] - The total interest expense for the three months ended September 30, 2025, decreased to $15,362,000 from $18,248,000 in 2024, a decline of 15.3%[10] - The company reported a net cash provided by operating activities of $8,234,000 for the nine months ended September 30, 2025, compared to $9,287,000 in the same period of 2024, a decrease of 11.3%[15] - Stock-based compensation expense for the nine months ended September 30, 2025, was $1,885,000, compared to $2,082,000 in the same period of 2024, a decrease of 9.5%[15] Credit Quality and Losses - The provision for credit losses on loans was $(66,000) for the three months ended September 30, 2025, compared to $3,125,000 in the same period of 2024, indicating a significant improvement in credit quality[10] - The total charge-offs for the three months ended September 30, 2025, amounted to $235,000, compared to $1.91 million for the same period in 2024[47] - The allowance for credit losses on loans was $18.83 million as of September 30, 2025, down from $19.45 million on December 31, 2024, reflecting a reduction of approximately 3.2%[47] - Total non-accrual loans as of September 30, 2025, amounted to $23,386,000, with no allowance recorded[48] - The provision for credit losses for the nine months ended September 30, 2025, was a negative $593,000, indicating a reversal compared to the previous year[47] Assets and Equity - Total stockholders' equity increased to $218,363,000 as of September 30, 2025, up from $207,991,000 at the end of 2024, reflecting a growth of 5.5%[13] - Cash and cash equivalents decreased to $127,294,000 at the end of September 2025, down from $232,114,000 at the end of September 2024, a decline of 45.4%[15] - The company’s total assets as of September 30, 2025, were not explicitly stated but can be inferred to have increased given the growth in equity and net income[16] Loans and Investments - The total gross loans decreased to $1.81 billion as of September 30, 2025, from $1.83 billion on December 31, 2024, representing a decline of approximately 1.4%[43] - The net loans stood at $1.79 billion as of September 30, 2025, compared to $1.81 billion as of December 31, 2024, indicating a decrease of about 1.5%[43] - The balance of investments in new market tax credits was $11.2 million, up from $9.4 million on December 31, 2024[41] - The company periodically invests in New Market Tax Credit (NMTC) opportunities related to community development projects[40] 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 common stock on the Nasdaq Capital Market under the symbol "MNSB" as of April 22, 2019[18] Segment Performance - Segment profit for Core Banking for the three months ended September 30, 2025, was $5,801,000, while the Financial Technology segment reported a loss of $388,000[99] - Total consolidated interest income for the nine months ended September 30, 2025, was $102,839,000, with Core Banking contributing $101,503,000[100] Miscellaneous - The company plans to pivot away from certain Banking as a Service (BaaS) services, which may impact future financial results[103] - The software solution related to Avenu was deployed in October 2024, leading to changes in cost capitalization practices[103]