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, compared to $265,000 in the same period of 2024, marking a substantial increase 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 2024[10] - Comprehensive income for the three months ended September 30, 2025, was $5,560,000, significantly higher than $1,934,000 in 2024, representing 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 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 decline of 4.2%[10] - Total consolidated interest expense for the three months ended September 30, 2025, was $15,362,000, leading to a segment gross profit of $18,224,000[99] - The total accumulated other comprehensive loss as of September 30, 2025, was $6,421,000, an improvement from $7,711,000 as of December 31, 2024[96] Credit Losses and Provisions - 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 reduction in credit loss provisions[10] - The allowance for credit losses on loans was $18.83 million as of September 30, 2025, down from $19.45 million as of December 31, 2024, reflecting a reduction of approximately 3.2%[47] - The total allowance for credit losses reflects the company's proactive approach to managing potential credit risks associated with its loan portfolio[55] - The company reported charge-offs of $235,000 for the three months ended September 30, 2025, compared to $1.91 million for the same period in 2024, indicating a significant decrease in charge-offs[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 45.1%[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 Loan Portfolio - The company experienced a net decrease in loan portfolio of $15,223,000 for the nine months ended September 30, 2025, contrasting with a significant decrease of $96,444,000 in the same period of 2024[15] - The total gross loans decreased to $1.81 billion as of September 30, 2025, from $1.83 billion as of December 31, 2024, representing a decline of approximately 1.6%[43] - The net loans amount was $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] - Total non-accrual loans as of September 30, 2025, amounted to $23,386,000, an increase from $1,162,000 in single-family residential real estate loans as of December 31, 2024[48] Investments and Securities - As of September 30, 2025, the total fair value of available-for-sale investment securities was $58,338,000, with unrealized losses of $8,376,000[33] - The amortized cost of held-to-maturity (HTM) securities was $14,293,000 as of September 30, 2025, with a fair value of $14,221,000[35] - The company did not record an allowance for credit losses on its securities available-for-sale or held-to-maturity portfolio as of September 30, 2025, and December 31, 2024[32] Strategic Initiatives - The company made a strategic decision to pivot away from certain Banking as a Service (BaaS) services, incurring nonrecurring costs related to this transition[103] - 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 CDE in January 2022[19] Miscellaneous - 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] - 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]
MAINSTREET BAN(MNSBP) - 2025 Q3 - Quarterly Report