MainStreet Bancshares Inc. Reports 2024 Results

Core Insights - MainStreet Bancshares, Inc. reported a loss of $9.98 million for 2024 due to nonrecurring impairment of capitalized intangible software and resolution of nonperforming assets, but remains strongly capitalized with good liquidity [1][2][3] - The company ended 2024 with a net interest margin of 3.13$1.9 billion, with core deposits making up 75% of total deposits [2][3][4] Financial Performance - The total interest income for the year was $134.615 million, an increase from$124.421 million in 2023, while total interest expense rose to $72.041 million from$47.679 million, resulting in a net interest income of $62.574 million [11][12] - The company resolved 62$1.835 billion [2][13] Business Strategy - The Avenu Banking-as-a-Service (BaaS) solution launched in October 2024 aims to diversify revenue streams and reach new customer segments, aligning with the company's branch-lite strategy [6][7] - MainStreet Bank focuses on providing innovative embedded banking services and has established fintech partnerships to enhance low-cost deposits and fee income [2][6] Market Position - MainStreet Bank operates in the DC Metropolitan area, which is described as a vibrant market, benefiting from a normalizing interest rate environment with the FOMC cutting rates by a total of 1.0% [3][4] - The bank has a robust line of business and professional lending products, including government contracting lines of credit and commercial real estate loans, and is an SBA Preferred Lender [4][5]