Strategic Balance Sheet Management Yields a Healthy Net Interest Margin
FAIRFAX, Va., Jan. 26, 2026 /PRNewswire/ -- MainStreet Bancshares, Inc. (Nasdaq: MNSB & MNSBP), the financial holding company for MainStreet Bank, reported a net income of $15.6 million for the year-ended December 31, 2025, resulting in earnings per common share of $1.76. The Company executed a buyback of 209,000 shares during the fourth quarter as part of its share buyback plan. The Company and Bank remain strongly capitalized.
"The team delivered quickly on our focused return to core banking," said Jeff W. Dick, Chairman and CEO of MainStreet Bancshares, Inc. and MainStreet Bank. "We are steadfast in increasing profitability and primed to go forward."
"The net interest margin expanded to 3.46% for 2025, a 33-basis point increase from the previous year," said Alex Vari, Chief Financial Officer of MainStreet Bancshares, Inc. and MainStreet Bank. "We plan to preserve and grow this strong net interest margin and continue to control our expenses to enhance our future performance. We are laser-focused on building a strong balance sheet and our portfolio is well-positioned for the current and anticipated interest rate environment."
"We continue to prove positive outcomes as we manage our asset quality and grow our loan portfolio," said Tom Floyd, Chief Lending Officer of MainStreet Bank. "Our team increased gross loans by $54 million in the fourth quarter, and we're encouraged by the momentum carrying into this year."
About MainStreet Bank: MainStreet Bank is coming to Middleburg, Virginia in February 2026! Our newest branch will be located at 10 North Pendleton Street, Middleburg, Virginia 20118.
In addition, MainStreet operates six branches in Herndon, Fairfax, McLean, Leesburg, Clarendon, and Washington, D.C. MainStreet Bank has over 55,000 free ATMs and a fully integrated online and mobile banking solution. The Bank is not restricted by a conventional branching system, as it can offer business customers the ability to Put Our Bank in Your Office$(R)$. With robust and easy-to-use online business banking technology, MainStreet has "put our bank" in thousands of businesses in the metropolitan area.
MainStreet Bank has a robust line of business and professional lending products, including government contracting lines of credit, commercial lines and term loans, residential and commercial construction, and commercial real estate. MainStreet also works with the SBA to offer 7A and 504 lending solutions. From sophisticated cash management to enhanced mobile banking and instant-issue Debit cards, MainStreet Bank is always looking for ways to improve our customer's experience.
MainStreet Bank was the first community bank in the Washington, D.C., metropolitan area to offer a full online business banking solution. MainStreet Bank was also the first bank headquartered in the Commonwealth of Virginia to offer CDARS -- a solution that provides multi-million-dollar FDIC insurance. Further information on the Bank can be obtained by visiting its website at mstreetbank.com.
This release contains forward-looking statements, including our expectations with respect to future events that are subject to various risks and uncertainties. The statements contained in this release that are not historical facts are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Words such as "may, " "will," "could," "should," "expect," "plan," "project," "intend," "anticipate," "believe," "estimate," "predict," "potential," "pursuant," "target," "continue," and similar expressions are intended to identify such forward-looking statements. Factors that could cause actual results to differ materially from management's projections, forecasts, estimates and expectations include: fluctuation in market rates of interest and loan and deposit pricing, adverse changes in the overall national economy as well as adverse economic conditions in our specific market areas, future impacts of pandemic outbreaks, maintenance and development of well-established and valued client relationships and referral source relationships, and acquisition or loss of key production personnel. We caution readers that the list of factors above is not exclusive. The forward-looking statements are made as of the date of this release, and we may not undertake steps to update the forward-looking statements to reflect the impact of any circumstances or events that arise after the date the forward-looking statements are made. In addition, our past results of operations are not necessarily indicative of future performance.
UNAUDITED CONSOLIDATED BALANCE SHEET INFORMATION
(In thousands)
December September June 30, March 31, December
31, 2025 30, 2025 2025 2025 31, 2024*
---------- ---------- ---------- ---------- ----------
ASSETS
Cash and due from banks $ 25,179 $ 23,940 $ 20,888 $ 18,384 $ 21,351
Interest-bearing deposits at
other financial
institutions 1,276 1,315 864 735 1,711
Federal funds sold 136,301 102,039 111,532 183,521 184,646
--------- --------- --------- --------- ---------
Total cash and cash
equivalents 162,756 127,294 133,284 202,640 207,708
Investment securities
available for sale (AFS),
at fair value 56,454 58,338 56,138 55,935 55,747
Investment securities held
to maturity $(HTM)$, at
amortized cost, net of
allowance for credit losses
of $0 for all periods 15,298 14,293 14,846 15,657 16,078
Restricted securities, at
amortized cost 7,005 7,005 7,005 7,005 6,873
Loans, net of allowance for
credit losses of $19,308,
$18,831, $19,057, $19,460,
and $19,450, respectively 1,841,833 1,788,243 1,767,432 1,811,789 1,810,556
Premises and equipment, net 13,530 13,212 13,344 13,020 13,287
Other real estate owned,
net 1,697 -- -- -- --
Property held for sale, at
fair value 2,806 3,225 3,225 -- --
Accrued interest and other
receivables 14,518 13,622 15,023 9,607 11,311
Bank owned life insurance 40,752 40,433 40,117 39,809 39,507
Other assets 56,020 59,124 64,367 67,383 67,031
--------- --------- --------- --------- ---------
Total Assets $2,212,669 $2,124,789 $2,114,781 $2,222,845 $2,228,098
========= ========= ========= ========= =========
LIABILITIES AND
STOCKHOLDERS' EQUITY
Liabilities:
Non-interest bearing
deposits $ 378,694 $ 324,717 $ 330,045 $ 345,319 $ 324,307
Interest-bearing demand
deposits 119,407 123,231 124,090 106,033 139,780
Savings and NOW deposits 121,905 125,214 116,069 124,049 64,337
Money market deposits 499,334 458,946 463,904 511,925 560,082
Time deposits 779,844 778,727 764,439 820,999 819,288
--------- --------- --------- --------- ---------
Total deposits 1,899,184 1,810,835 1,798,547 1,908,325 1,907,794
Subordinated debt, net 69,936 69,837 71,238 72,138 73,039
Other liabilities 24,958 25,754 31,526 32,764 39,274
--------- --------- --------- --------- ---------
Total Liabilities 1,994,078 1,906,426 1,901,311 2,013,227 2,020,107
Stockholders' Equity:
Preferred stock 27,263 27,263 27,263 27,263 27,263
Common stock 29,008 29,833 29,825 29,810 29,466
Capital surplus 66,531 68,895 68,261 67,612 67,823
Retained earnings 101,557 98,793 95,585 92,305 91,150
Accumulated other
comprehensive loss (5,768) (6,421) (7,464) (7,372) (7,711)
--------- --------- --------- --------- ---------
Total Stockholders'
Equity 218,591 218,363 213,470 209,618 207,991
--------- --------- --------- --------- ---------
Total Liabilities and
Stockholders' Equity $2,212,669 $2,124,789 $2,114,781 $2,222,845 $2,228,098
========= ========= ========= ========= =========
*Derived from audited financial statements
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME (LOSS) INFORMATION
(In thousands, except share and per share data)
Year-to-Date Three Months Ended
---------------------- ----------------------------------------------------------
December December December September June 30, March 31, December
31, 2025 31, 2024* 31, 2025 30, 2025 2025 2025 31, 2024
---------- ---------- ---------- ---------- ---------- ---------- ----------
INTEREST INCOME:
Interest and fees
on loans $ 124,211 $ 125,177 $ 29,969 $ 30,688 $ 32,443 $ 31,111 $ 31,323
Interest on
investment
securities
Taxable
securities 1,707 1,693 421 435 431 420 431
Tax-exempt
securities 1,076 1,093 276 270 267 263 262
Interest on
interest-bearing
deposits at other
financial
institutions 54 41 10 11 10 22 15
Interest on
federal funds
sold 4,540 6,611 1,198 1,060 1,135 1,147 3,088
--------- --------- --------- --------- --------- --------- ---------
Total interest
income 131,588 134,615 31,874 32,464 34,286 32,963 35,119
INTEREST EXPENSE:
Interest on
interest-bearing
demand deposits 4,187 8,661 1,064 1,071 1,004 1,048 2,612
Interest on
savings and NOW
deposits 1,469 754 390 467 391 221 201
Interest on money
market deposits 18,852 21,386 4,246 4,623 4,707 5,276 5,475
Interest on time
deposits 34,239 37,364 8,244 8,369 8,595 9,031 10,003
Interest on
federal funds
purchased 93 575 -- 28 -- 65 --
Interest on
Federal Home Loan
Bank advances -- 46 -- -- -- -- --
Interest on
subordinated
debt 3,203 3,255 788 804 799 812 787
--------- --------- --------- --------- --------- --------- ---------
Total interest
expense 62,043 72,041 14,732 15,362 15,496 16,453 19,078
--------- --------- --------- --------- --------- --------- ---------
Net interest
income 69,545 62,574 17,142 17,102 18,790 16,510 16,041
Provision for
credit losses (70) 6,763 328 144 (543) -- 3,407
--------- --------- --------- --------- --------- --------- ---------
Net interest
income after
provision for
credit losses 69,615 55,811 16,814 16,958 19,333 16,510 12,634
NON-INTEREST
INCOME:
Deposit account
service charges 2,184 1,996 559 557 538 530 481
Bank owned life
insurance income 1,245 1,189 319 316 308 302 304
Gain on retirement
of subordinated
debt 273 -- -- 145 68 60 --
Gain on equity
securities 103 -- -- -- 103 -- --
Net loss on
securities called
or matured -- (48) -- -- -- -- --
Other non-interest
income 222 115 22 104 49 47 22
--------- --------- --------- --------- --------- --------- ---------
Total
non-interest
income 4,027 3,252 900 1,122 1,066 939 807
NON-INTEREST
EXPENSES:
Salaries and
employee
benefits 31,587 30,475 7,557 7,366 8,279 8,385 8,253
Furniture and
equipment
expenses 3,840 3,636 884 799 1,141 1,016 830
Advertising and
marketing 2,051 2,199 469 571 530 481 600
Occupancy expenses 1,407 1,614 293 400 318 396 358
Outside services 3,776 3,627 688 625 1,290 1,173 1,168
Administrative
expenses 996 929 238 259 270 229 243
Computer software
intangible
impairment -- 19,721 -- -- -- -- 19,721
Other operating
expenses 10,894 10,766 2,696 2,647 2,917 2,634 3,258
--------- --------- --------- --------- --------- --------- ---------
Total
non-interest
expenses 54,551 72,967 12,825 12,667 14,745 14,314 34,431
--------- --------- --------- --------- --------- --------- ---------
Income (loss)
before income tax
expense
(benefit) 19,091 (13,904) 4,889 5,413 5,654 3,135 (20,990)
Income tax expense
(benefit) 3,478 (3,924) 836 896 1,064 682 (4,823)
--------- --------- --------- --------- --------- --------- ---------
Net income (loss) 15,613 (9,980) 4,053 4,517 4,590 2,453 (16,167)
--------- --------- --------- --------- --------- --------- ---------
Preferred stock
dividends 2,156 2,156 539 539 539 539 539
--------- --------- --------- --------- --------- --------- ---------
Net income (loss)
available to
common
shareholders $ 13,457 $ (12,136) $ 3,514 $ 3,978 $ 4,051 $ 1,914 $ (16,706)
========= ========= ========= ========= ========= ========= =========
Earnings (loss)
per common share,
basic and
diluted $ 1.76 $ (1.60) $ 0.46 $ 0.52 $ 0.53 $ 0.25 $ (2.20)
Weighted average
number of common
shares, basic and
diluted 7,652,504 7,606,391 7,564,723 7,704,639 7,704,677 7,636,191 7,603,318
*Derived from audited financial statements
UNAUDITED LOAN, DEPOSIT AND BORROWING DETAIL
(In thousands)
December 31, 2025 September 30, 2025 December 31, 2024 Percentage Change
------------------ ------------------ -------------------- -----------------
Last
% of % of % of 3 Last 12
$ Amount Total $ Amount Total $ Amount Total Mos Mos
---------- ------ ---------- ------ ---------- -------- ---- -------
LOANS:
Construction and
land development
loans $ 300,666 16.1% $ 312,318 17.2% $ 391,253 21.3% -3.7% -23.2%
Residential real
estate loans 441,578 23.7% 411,592 22.7% 438,745 23.9% 7.3% 0.6%
Commercial real
estate loans 1,014,933 54.4% 981,091 54.2% 898,204 48.9% 3.4% 13.0%
Commercial and
industrial loans 106,990 5.7% 105,217 5.8% 105,212 5.7% 1.7% 1.7%
Consumer loans 1,148 0.1% 1,204 0.1% 1,574 0.2% -4.7% -27.1%
--------- ------ --------- ------ --------- -------- ---- -------
Total Gross
Loans $1,865,315 100.0% $1,811,422 100.0% $1,834,988 100.0% 3.0% 1.7%
--------- --------- ---------
Less: Allowance for
credit losses (19,308) (18,831) (19,450)
Net deferred loan
fees (4,174) (4,348) (4,982)
--------- --------- ---------
Net Loans $1,841,833 $1,788,243 $1,810,556
========= ========= =========
DEPOSITS:
Non-interest
bearing deposits $ 378,694 20.0% $ 324,717 17.9% $ 324,307 17.0% 16.6% 16.8%
Interest-bearing
deposits:
Demand deposits 119,407 6.3% 123,231 6.8% 139,780 7.3% -3.1% -14.6%
Savings and NOW
deposits 121,905 6.4% 125,214 6.9% 64,337 3.4% -2.6% 89.5%
Money market
deposits 499,334 26.3% 458,946 25.3% 560,082 29.4% 8.8% -10.8%
Time deposit
$250,000 or more 490,594 25.8% 501,332 27.8% 535,676 28.0% -2.1% -8.4%
Time deposit less
than $250,000 289,250 15.2% 277,395 15.3% 283,612 14.9% 4.3% 2.0%
--------- ------ --------- ------ --------- -------- ---- -------
Total Deposits $1,899,184 100.0% $1,810,835 100.0% $1,907,794 100.0% 4.9% -0.5%
--------- ------ --------- ------ --------- -------- ---- -------
BORROWINGS:
Subordinated debt,
net $ 69,936 100.0% $ 69,837 100.0% $ 73,039 100.0% 0.1% -4.2%
--------- ------ --------- ------ --------- -------- ---- -------
Total Borrowings $ 69,936 100.0% $ 69,837 100.0% $ 73,039 100.0% 0.1% -4.2%
--------- ------ --------- ------ --------- -------- ---- -------
Total Deposits and
Borrowings $1,969,120 $1,880,672 $1,980,833 4.7% -0.6%
========= ========= =========
Core customer
funding sources
(1) $1,400,678 71.1% $1,289,952 68.6% $1,439,657 72.7% 8.6% -2.7%
Brokered and
listing service
sources (2) 498,506 25.3% 520,883 27.7% 468,137 23.6% -4.3% 6.5%
Subordinated debt,
net (3) 69,936 3.6% 69,837 3.7% 73,039 3.7% 0.1% -4.2%
--------- ------ --------- ------ --------- -------- ---- -------
Total Funding
Sources $1,969,120 100.0% $1,880,672 100.0% $1,980,833 100.0% 4.7% -0.6%
========= ========= =========
(1) Includes ICS, CDARS, and reciprocal deposits maintained by customers,
which represent sweep accounts tied to customer operating accounts.
(2) Consists of certificates of deposit $(CD)$ through multiple listing
services and multiple brokered deposit services, as well as ICS and CDARS
one-way certificates of deposit and regional money market accounts.
Excludes $145.2 million in core deposits placed in reciprocal networks
for FDIC insurance coverage that will be classified as brokered deposits
on the call report in pursuant to rule 12 CFR 337.6(e) as of December 31,
2025.
(3) Subordinated debt obligation qualifies as Tier 2 capital at the holding
company and Tier 1 capital at the Bank.
UNAUDITED AVERAGE BALANCE SHEETS, INTEREST AND RATES
(In thousands)
For the three months ended December For the three months ended December
31, 2025 31, 2024
----------------------------------- -----------------------------------
Interest Average Interest Average
Income/ Yields/ Rate Income/ Yields/ Rate
Average Expense (annualized) Average Expense (annualized)
Balance (3)(4) (3)(4) Balance (3)(4) (3)(4)
---------- --------- ------------ ---------- --------- ------------
ASSETS:
Interest-earning
assets:
Loans (1)(2) $1,819,614 $ 29,969 6.53% $1,808,894 $ 31,323 6.87%
Securities:
Taxable 50,844 421 3.29% 53,566 431 3.19%
Tax-exempt 35,631 349 3.89% 35,512 332 3.71%
Interest-bearing
deposits at other
financial
institutions 1,044 10 3.80% 1,272 15 4.68%
Federal funds sold 127,376 1,198 3.73% 262,323 3,088 4.67%
--------- -------- ------------ --------- -------- ------------
Total
interest-earning
assets $2,034,509 $ 31,947 6.23% $2,161,567 $ 35,189 6.46%
Other assets 123,757 129,077
--------- ---------
Total assets $2,158,266 $2,290,644
========= =========
Liabilities and
Stockholders' Equity:
Interest-bearing
liabilities:
Interest-bearing
demand deposits $ 125,673 $ 1,064 3.36% $ 231,496 $ 2,612 4.48%
Savings and NOW
deposits 121,401 390 1.27% 64,112 201 1.24%
Money market deposits 467,891 4,246 3.60% 514,235 5,475 4.22%
Time deposits 786,801 8,244 4.16% 809,924 10,003 4.90%
--------- -------- ------------ --------- -------- ------------
Total interest-bearing
deposits $1,501,766 $ 13,944 3.68% $1,619,767 $ 18,291 4.48%
Federal funds
purchased 2 -- -- 2 -- --
Subordinated debt,
net 69,898 788 4.47% 73,001 787 4.28%
--------- -------- ------------ --------- -------- ------------
Total interest-bearing
liabilities $1,571,666 $ 14,732 3.72% $1,692,770 $ 19,078 4.47%
Demand deposits and
other liabilities 368,502 370,332
--------- ---------
Total liabilities $1,940,168 $2,063,102
Stockholders' Equity 218,098 227,542
--------- ---------
Total Liabilities and
Stockholders' Equity $2,158,266 $2,290,644
========= =========
Interest Rate Spread 2.51% 1.99%
Net Interest Income $ 17,215 $ 16,111
======== ========
Net Interest Margin 3.36% 2.96%
(1) Includes loans classified as non-accrual
(2) Total loan interest income includes amortization of deferred loan fees,
net of deferred loan costs
(3) Income and yields for all periods presented are reported on a
tax-equivalent basis using the federal statutory rate of 21%
(4) Refer to "Unaudited Reconciliation of Certain Non-GAAP Financial
Measures" for reconciliation of non-GAAP measures
UNAUDITED AVERAGE BALANCE SHEETS, INTEREST AND RATES
(In thousands)
For the year ended December 31, For the year ended December 31,
2025 2024
----------------------------------- -----------------------------------
Interest Average Interest Average
Income/ Yields/ Rate Income/ Yields/ Rate
Average Expense (annualized) Average Expense (annualized)
Balance (3)(4) (3)(4) Balance (3)(4) (3)(4)
---------- --------- ------------ ---------- --------- ------------
ASSETS:
Interest-earning
assets:
Loans (1)(2) $1,820,481 $ 124,211 6.82% $1,782,061 $ 125,177 7.02%
Securities:
Taxable 52,401 1,707 3.26% 54,935 1,693 3.08%
Tax-exempt 35,382 1,362 3.85% 36,379 1,384 3.80%
Interest-bearing
deposits at other
financial
institutions 1,216 54 4.44% 815 41 5.03%
Federal funds sold 111,144 4,540 4.08% 136,258 6,611 4.85%
--------- -------- ------------ --------- -------- ------------
Total
interest-earning
assets $2,020,624 $ 131,874 6.53% $2,010,448 $ 134,906 6.71%
Other assets 120,810 126,138
--------- ---------
Total assets $2,141,434 $2,136,586
========= =========
Liabilities and
Stockholders' Equity:
Interest-bearing
liabilities:
Interest-bearing
demand deposits $ 117,493 $ 4,187 3.56% $ 181,109 $ 8,661 4.78%
Savings and NOW
deposits 107,151 1,469 1.37% 54,385 754 1.39%
Money market deposit 486,945 18,852 3.87% 464,400 21,386 4.61%
Time deposits 785,378 34,239 4.36% 748,938 37,364 4.99%
--------- -------- ------------ --------- -------- ------------
Total interest-bearing
deposits $1,496,967 $ 58,747 3.92% $1,448,832 $ 68,165 4.70%
Federal funds
purchased 1,973 93 4.71% 9,941 575 5.78%
FHLB advances -- -- -- 820 46 5.61%
Subordinated debt,
net 71,223 3,203 4.50% 72,852 3,255 4.47%
--------- -------- ------------ --------- -------- ------------
Total interest-bearing
liabilities $1,570,163 $ 62,043 3.95% $1,532,445 $ 72,041 4.70%
Demand deposits and
other liabilities 358,146 379,510
--------- ---------
Total liabilities $1,928,309 $1,911,955
Stockholders' Equity 213,114 224,631
--------- ---------
Total Liabilities and
Stockholders' Equity $2,141,423 $2,136,586
========= =========
Interest Rate Spread 2.58% 2.01%
Net Interest Income $ 69,831 $ 62,865
======== ========
Net Interest Margin 3.46% 3.13%
(1) Includes loans classified as non-accrual
(2) Total loan interest income includes amortization of deferred loan fees,
net of deferred loan costs
(3) Income and yields for all periods presented are reported on a
tax-equivalent basis using the federal statutory rate of 21%
(4) Refer to "Unaudited Reconciliation of Certain Non-GAAP Financial
Measures" for reconciliation of non-GAAP measures
UNAUDITED SUMMARY FINANCIAL DATA
(Dollars in thousands except per share data)
At or For the Three
Months Ended At or For the Year Ended
December 31, December 31,
-------------------------- --------------------------
2025 2024 2025 2024
---------- ---------- ---------- ----------
Per share Data
and Shares
Outstanding
Earnings (loss) per
common share (basic
and diluted) $ 0.46 $ (2.20) $ 1.76 $ (1.60)
Book value per common
share $ 25.52 $ 23.77 $ 25.52 $ 23.77
Tangible book value
per common share
(2) $ 25.52 $ 23.77 $ 25.52 $ 23.77
Weighted average
common shares (basic
and diluted) 7,564,723 7,603,318 7,652,504 7,606,391
Common shares
outstanding at end
of period 7,496,571 7,603,765 7,496,571 7,603,765
Performance
Ratios
Return on average
assets (annualized) 0.75% (2.80)% 0.73% (0.47)%
Return on average
equity (annualized) 7.37% (28.19)% 7.33% (4.44)%
Return on average
common equity
(annualized) 7.31% (29.13)% 7.24% (6.15)%
Yield on earning
assets (FTE) (2)
(annualized) 6.23% 6.46% 6.53% 6.71%
Cost of
interest-bearing
liabilities
(annualized) 3.72% 4.47% 3.95% 4.70%
Net interest spread
(FTE) (2)
(annualized) 2.51% 1.99% 2.58% 2.01%
Net interest margin
(FTE) (2)
(annualized) 3.36% 2.96% 3.46% 3.13%
Non-interest income
as a percentage of
average assets
(annualized) 0.17% 0.14% 0.19% 0.15%
Non-interest expense
to average assets
(annualized) 2.36% 5.96% 2.55% 3.42%
Efficiency ratio (3) 71.08% 204.36% 74.15% 110.85%
Allowance for
Credit Losses
Allowance for credit
losses (ACL)
Beginning balance,
ACL - loans $ 18,831 $ 18,327 $ 19,450 $ 16,506
Add: recoveries 2 9 834 28
Less: charge-offs -- (2,151) (858) (4,569)
Add: provision for
credit losses -
loans 475 3,265 (118) 7,485
--------- --------- --------- ---------
Ending balance, ACL
- loans $ 19,308 $ 19,450 $ 19,308 $ 19,450
--------- --------- --------- ---------
Beginning balance,
reserve for unfunded
commitment (RUC) $ 482 $ 145 $ 287 $ 1,009
Provision for
unfunded
commitments, net (147) 142 48 (722)
--------- --------- --------- ---------
Ending balance, RUC $ 335 $ 287 $ 335 $ 287
--------- --------- --------- ---------
Total allowance for
credit losses $ 19,643 $ 19,737 $ 19,643 $ 19,737
========= ========= ========= =========
Allowance for credit
losses on loans to
total gross loans 1.04% 1.06% 1.04% 1.06%
Allowance for credit
losses on loans to
non-performing
loans 58.19% 89.84% 58.19% 89.84%
Net charge-offs to
average gross loans
(annualized) 0.00% 0.46% 0.00% 0.25%
Concentration
Ratios
Commercial real
estate loans to
total capital (4) 354.85% 393.79% 354.85% 393.79%
Construction loans to
total capital (5) 98.06% 131.92% 98.06% 131.92%
Past due and
Non-performing
Assets
Loans 30-89 days past
due and accruing to
total gross loans 0.98% 0.00% 0.98% 0.00%
Loans 90 days past
due and accruing to
total gross loans 0.00% 0.00% 0.00% 0.00%
Non-accrual loans to
total gross loans 1.69% 1.18% 1.69% 1.18%
Other real estate
owned, net $ 1,697 $ -- $ 1,697 $ --
Non-performing loans $ 31,482 $ 21,650 $ 31,482 $ 21,650
Non-performing assets
to total assets 1.50% 0.97% 1.50% 0.97%
Regulatory
Capital Ratios
(Bank only) (1)
Total risk-based
capital ratio 16.08% 15.69% 16.08% 15.69%
Tier 1 risk-based
capital ratio 15.05% 14.64% 15.05% 14.64%
Leverage ratio 13.28% 12.08% 13.28% 12.08%
Common equity tier 1
ratio 15.05% 14.64% 15.05% 14.64%
Other information
Common shares closing
stock price $ 20.36 $ 18.10 $ 20.36 $ 18.10
Tangible equity /
tangible assets 9.88% 9.33% 9.88% 9.33%
Average tangible
equity / average
tangible assets (2) 10.11% 9.21% 9.95% 9.80%
Number of full time
equivalent
employees 174 204 174 204
Number of full
service branch
offices 6 6 6 6
(1) Regulatory capital ratios as of December 31, 2025 are preliminary
(2) Refer to "Unaudited Reconciliation of Certain Non-GAAP Financial
Measures" for reconciliation of non-GAAP measures
(3) Efficiency ratio is calculated as non-interest expense as a percentage of
net interest income and non-interest income
(4) Commercial real estate includes only non-owner occupied, multifamily, and
construction loans as a percentage of Bank capital
(5) Construction loans as a percentage of Bank capital
Unaudited Reconciliation of Certain Non-GAAP Financial Measures
(Dollars In thousands)
For the three months ended For the year ended
December 31, December 31,
2025 2024 2025 2024
---------- ---------- ---------- ----------
Net interest
margin (FTE)
Net interest
income (GAAP) $ 17,142 $ 16,041 $ 69,545 $ 62,574
FTE adjustment on
tax-exempt
securities 73 70 286 291
--------- --------- --------- ---------
Net interest
income (FTE)
(non-GAAP) 17,215 16,111 69,831 62,865
Average
interest-earning
assets 2,034,509 2,161,567 2,020,624 2,010,448
Net interest
margin (GAAP) 3.34% 2.94% 3.44% 3.11%
Net interest
margin (FTE)
(non-GAAP) 3.36% 2.96% 3.46% 3.13%
For the three months ended For the year ended
December 31, December 31,
2025 2024 2025 2024
---------- ---------- ---------- ----------
Yield on earning
assets (FTE)
Total interest
income (GAAP) $ 31,874 $ 35,119 $ 131,588 $ 134,615
FTE adjustment on
tax-exempt
securities 73 70 286 291
--------- --------- --------- ---------
Total interest
income (FTE)
(non-GAAP) 31,947 35,189 131,874 134,906
--------- --------- --------- ---------
Average
interest-earning
assets 2,034,509 2,161,567 2,020,624 2,010,448
Yield on earning
assets (GAAP) 6.22% 6.45% 6.51% 6.70%
Yield on earning
assets (FTE)
(non-GAAP) 6.23% 6.46% 6.53% 6.71%
For the three months ended For the year ended
December 31, December 31,
2025 2024 2025 2024
---------- ---------- ---------- ----------
Net interest
spread (FTE)
Yield on earning
assets (GAAP) 6.22% 6.45% 6.51% 6.70%
Yield on earning
assets (FTE)
(non-GAAP) 6.23% 6.46% 6.53% 6.71%
Yield on
interest-bearing
liabilities
(GAAP) 3.72% 4.47% 3.95% 4.70%
--------- --------- ---------- ----------
Net interest
spread (GAAP) 2.50% 1.98% 2.56% 2.00%
Net interest
spread (FTE)
(non-GAAP) 2.51% 1.99% 2.58% 2.01%
For the three months ended For the year ended
December 31, December 31,
-------------------------- --------------------------
2025 2024 2025 2024
---------- ---------- ---------- ----------
Average tangible
stockholders'
equity
Total average
stockholders'
equity (GAAP) $ 218,098 $ 227,542 $ 213,114 $ 224,631
Less: average
intangible
assets -- (18,327) -- (16,989)
--------- --------- --------- ---------
Total average
tangible
stockholders'
equity
(non-GAAP) 218,098 209,215 213,114 207,642
--------- --------- --------- ---------
For the three months ended For the year ended
December 31, December 31,
-------------------------- --------------------------
2025 2024 2025 2024
---------- ---------- ---------- ----------
Average tangible
assets
Total average
assets (GAAP) $2,158,266 $2,290,644 $2,141,434 $2,136,586
Less: average
intangible
assets -- (18,327) -- (16,989)
--------- --------- --------- ---------
Total average
tangible assets
(non-GAAP) 2,158,266 2,272,317 2,141,434 2,119,597
--------- --------- --------- ---------
Contact: Billy Freesmeier
Chief of Staff
(703) 481-4579
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SOURCE MainStreet Bancshares, Inc.
(END) Dow Jones Newswires
January 26, 2026 08:00 ET (13:00 GMT)