Financial Performance - MainStreet Bancshares, Inc. reported a net income of $15.6 million for the year ended December 31, 2025, resulting in earnings per common share of $1.76[1] - Net income available to common shareholders was $13,457 thousand, a turnaround from a loss of $12,136 thousand in the previous year[10] - Earnings per common share increased to $1.76, compared to a loss of $1.60 per share in the same quarter last year[10] - The return on average assets (annualized) improved to 0.75% in 2025 from a loss of (2.80)% in 2024[20] - The earnings per common share (basic and diluted) for 2025 was $1.76, a significant recovery from a loss of $(1.60) in 2024[20] Loan and Deposit Growth - Gross loans increased by $54 million in the fourth quarter, indicating positive momentum in the loan portfolio[2] - Total gross loans increased to $1,865,315, a 3.0% increase from the previous quarter and a 1.7% increase year-over-year[12] - Total deposits increased to $1,899.2 million as of December 31, 2025, up from $1,810.8 million in the previous quarter[8] - Total deposits reached $1,899,184, up 4.9% from the previous quarter, but down 0.5% year-over-year[12] - Non-interest bearing deposits increased to $378.7 million as of December 31, 2025, compared to $324.7 million in the previous quarter[8] - Non-interest bearing deposits increased by 16.6% quarter-over-quarter to $378,694, accounting for 20.0% of total deposits[12] Interest Income and Margin - The net interest margin expanded to 3.46% for 2025, a 33-basis point increase from the previous year[2] - Net interest income after provision for credit losses was $69,615 thousand, compared to $55,811 thousand in the same period last year, reflecting a significant increase of 24.7%[10] - Total interest income for the year-to-date reached $131,588 thousand, a slight decrease from $134,615 thousand in the previous year[10] - Interest income from loans was $29,969, with an annualized yield of 6.53% for the quarter ended December 31, 2025[16] - The interest rate spread improved to 2.51%, compared to 1.99% in the same quarter last year[16] Expense Management - The company remains focused on controlling expenses to enhance future performance and maintain a strong balance sheet[2] - Total non-interest expenses decreased to $54,551 thousand from $72,967 thousand, showing a reduction of 25.2%[10] - Provision for credit losses was recorded at $(70) thousand, a significant improvement from $6,763 thousand in the prior year[10] Capital and Efficiency - The total risk-based capital ratio as of December 31, 2025, was 16.08%, up from 15.69% in 2024, indicating a stronger capital position[20] - The efficiency ratio improved to 71.08% in Q4 2025 from 204.36% in Q4 2024, indicating enhanced operational efficiency[20] - The allowance for credit losses on loans to total gross loans was 1.04% as of December 31, 2025, consistent with 1.06% in 2024[20] Shareholder Actions - The company executed a buyback of 209,000 shares during the fourth quarter as part of its share buyback plan[1] - The common shares closing stock price rose to $20.36 at the end of 2025, up from $18.10 in 2024, reflecting a growth of 12.5%[20] Branch Expansion - MainStreet Bank plans to open a new branch in Middleburg, Virginia in February 2026[2] Employment Changes - The number of full-time equivalent employees decreased to 174 in 2025 from 204 in 2024, suggesting a reduction in workforce[20]
MAINSTREET BAN(MNSBP) - 2025 Q4 - Annual Results