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Net Interest Margin Expands on Disciplined Funding Strategy
FAIRFAX, Va., April 20, 2026 (GLOBE NEWSWIRE) -- MainStreet Bancshares, Inc. (Nasdaq: MNSB & MNSBP), the financial holding company for MainStreet Bank, reported a net income of $4.1 million for the quarter-ended March 31, 2026, resulting in earnings per common share of $0.48. The net interest margin expanded 9 basis points during the quarter to 3.47%, resulting from consistent loan pricing and lower funding costs.
During the quarter the Company executed a buyback of 273,448 shares, and the book value per common share ended the quarter at $25.63. The Company and Bank remain strongly capitalized.
“Our team’s disciplined execution continues to drive value for our shareholders. With robust liquidity and a growing book value, we leveraged our share buyback program to take advantage of accretive opportunities in the market. At the same time, we remain focused on delivering strong and sustainable earnings growth,” said Jeff W. Dick, Chairman and CEO of MainStreet Bancshares, Inc. and MainStreet Bank.
“We continue to replace higher cost funds with lower cost deposits which is a key driver of our expanding net interest margin,” said Alex Vari, CFO of MainStreet Bancshares, Inc. and MainStreet Bank. “We’ve seen our eighth straight quarter with improvement in our total cost of deposits. This is a testament to our diligence in structuring noncore deposits while our business bankers maintain and grow valuable relationships within our community. Total core funding is $1.4 billion and total deposits grew to over $1.9 billion.”
“Net loans increased for the quarter to $1.85 billion resulting in a well-managed 98% loan-to-deposit ratio. We’re pleased to have grown our owner-occupied commercial real estate book by $79 million year-over-year. Our owner-occupied relationships also bring good deposit balances, which helps to maximize the value of our customer relationships,” said Tom Floyd, Chief Lending Officer of MainStreet Bank.
Nonperforming assets as a percentage of total assets settled at 2.47% while loans 30-89 days past due and accruing improved to 0.95%. In response, Chris Johnston, Chief Credit Officer of MainStreet Bank, added, “We have a strong credit culture and a comprehensive underwriting process. The loans we are currently working to resolve are secured by properly leveraged real estate with personal guarantees. Our primary objective is to work with borrowers to resolve loans that have elevated risk without exposing the Bank to a loss of principal. Our team’s track record on resolutions is strong – with a total accumulated principal loss of less-than $10 million over the entire 22-year history for the commercial loan portfolio.”
About MainStreet Bank: MainStreet operates seven branches in Herndon, Fairfax, McLean, Leesburg, Middleburg, 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®. 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 | ||||||||||||||||||||
| ||||||||||||||||||||
|
| March 31, 2026 |
|
| December 31, 2025* |
|
| September 30, 2025 |
|
| June 30, 2025 |
|
| March 31, 2025 |
| |||||
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
| $ | 33,044 |
|
| $ | 25,179 |
|
| $ | 23,940 |
|
| $ | 20,888 |
|
| $ | 18,384 |
|
Interest-bearing deposits at other financial institutions |
|
| 783 |
|
|
| 1,276 |
|
|
| 1,315 |
|
|
| 864 |
|
|
| 735 |
|
Federal funds sold |
|
| 134,288 |
|
|
| 136,301 |
|
|
| 102,039 |
|
|
| 111,532 |
|
|
| 183,521 |
|
Total cash and cash equivalents |
|
| 168,115 |
|
|
| 162,756 |
|
|
| 127,294 |
|
|
| 133,284 |
|
|
| 202,640 |
|
Investment securities available for sale (AFS), at fair value |
|
| 57,021 |
|
|
| 57,954 |
|
|
| 58,338 |
|
|
| 56,138 |
|
|
| 55,935 |
|
Investment securities held to maturity (HTM), at amortized cost, net of allowance for credit losses of $0 for all periods |
|
| 13,790 |
|
|
| 13,798 |
|
|
| 14,293 |
|
|
| 14,846 |
|
|
| 15,657 |
|
Restricted securities, at amortized cost |
|
| 6,998 |
|
|
| 7,005 |
|
|
| 7,005 |
|
|
| 7,005 |
|
|
| 7,005 |
|
Loans, net of allowance for credit losses of $19,049, $19,308, $18,831, $19,057, and $19,460, respectively |
|
| 1,850,961 |
|
|
| 1,841,833 |
|
|
| 1,788,243 |
|
|
| 1,767,432 |
|
|
| 1,811,789 |
|
Premises and equipment, net |
|
| 13,430 |
|
|
| 13,608 |
|
|
| 13,212 |
|
|
| 13,344 |
|
|
| 13,020 |
|
Other real estate owned, net |
|
| 1,094 |
|
|
| 1,697 |
|
|
| — |
|
|
| — |
|
|
| — |
|
Property held for sale, at fair value |
|
| 2,745 |
|
|
| 2,728 |
|
|
| 3,225 |
|
|
| 3,225 |
|
|
| — |
|
Accrued interest and other receivables |
|
| 13,453 |
|
|
| 14,518 |
|
|
| 13,622 |
|
|
| 15,023 |
|
|
| 9,607 |
|
Bank owned life insurance |
|
| 41,071 |
|
|
| 40,752 |
|
|
| 40,433 |
|
|
| 40,117 |
|
|
| 39,809 |
|
Other assets |
|
| 54,615 |
|
|
| 56,020 |
|
|
| 59,124 |
|
|
| 64,367 |
|
|
| 67,383 |
|
Total Assets |
| $ | 2,223,293 |
|
| $ | 2,212,669 |
|
| $ | 2,124,789 |
|
| $ | 2,114,781 |
|
| $ | 2,222,845 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing deposits |
| $ | 359,113 |
|
| $ | 378,694 |
|
| $ | 324,717 |
|
| $ | 330,045 |
|
| $ | 345,319 |
|
Interest-bearing demand deposits |
|
| 120,700 |
|
|
| 119,407 |
|
|
| 123,231 |
|
|
| 124,090 |
|
|
| 106,033 |
|
Savings and NOW deposits |
|
| 138,667 |
|
|
| 121,905 |
|
|
| 125,214 |
|
|
| 116,069 |
|
|
| 124,049 |
|
Money market deposits |
|
| 545,804 |
|
|
| 499,334 |
|
|
| 458,946 |
|
|
| 463,904 |
|
|
| 511,925 |
|
Time deposits |
|
| 750,441 |
|
|
| 779,844 |
|
|
| 778,727 |
|
|
| 764,439 |
|
|
| 820,999 |
|
Total deposits |
|
| 1,914,725 |
|
|
| 1,899,184 |
|
|
| 1,810,835 |
|
|
| 1,798,547 |
|
|
| 1,908,325 |
|
Subordinated debt, net |
|
| 70,035 |
|
|
| 69,936 |
|
|
| 69,837 |
|
|
| 71,238 |
|
|
| 72,138 |
|
Other liabilities |
|
| 23,549 |
|
|
| 24,958 |
|
|
| 25,754 |
|
|
| 31,526 |
|
|
| 32,764 |
|
Total Liabilities |
|
| 2,008,309 |
|
|
| 1,994,078 |
|
|
| 1,906,426 |
|
|
| 1,901,311 |
|
|
| 2,013,227 |
|
Stockholders’ Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock |
|
| 27,263 |
|
|
| 27,263 |
|
|
| 27,263 |
|
|
| 27,263 |
|
|
| 27,263 |
|
Common stock |
|
| 28,247 |
|
|
| 29,008 |
|
|
| 29,833 |
|
|
| 29,825 |
|
|
| 29,810 |
|
Capital surplus |
|
| 61,045 |
|
|
| 66,531 |
|
|
| 68,895 |
|
|
| 68,261 |
|
|
| 67,612 |
|
Retained earnings |
|
| 104,360 |
|
|
| 101,557 |
|
|
| 98,793 |
|
|
| 95,585 |
|
|
| 92,305 |
|
Accumulated other comprehensive loss |
|
| (5,931 | ) |
|
| (5,768 | ) |
|
| (6,421 | ) |
|
| (7,464 | ) |
|
| (7,372 | ) |
Total Stockholders’ Equity |
|
| 214,984 |
|
|
| 218,591 |
|
|
| 218,363 |
|
|
| 213,470 |
|
|
| 209,618 |
|
Total Liabilities and Stockholders’ Equity |
| $ | 2,223,293 |
|
| $ | 2,212,669 |
|
| $ | 2,124,789 |
|
| $ | 2,114,781 |
|
| $ | 2,222,845 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*Derived from audited financial statements
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME INFORMATION | ||||||||||||||||||||
| ||||||||||||||||||||
|
| Three Months Ended |
| |||||||||||||||||
|
| March 31, 2026 |
|
| December 31, 2025 |
|
| September 30, 2025 |
|
| June 30, 2025 |
|
| March 31, 2025 |
| |||||
INTEREST INCOME: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and fees on loans |
| $ | 29,518 |
|
| $ | 29,969 |
|
| $ | 30,688 |
|
| $ | 32,443 |
|
| $ | 31,111 |
|
Interest on investment securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable securities |
|
| 418 |
|
|
| 421 |
|
|
| 435 |
|
|
| 431 |
|
|
| 420 |
|
Tax-exempt securities |
|
| 287 |
|
|
| 276 |
|
|
| 270 |
|
|
| 267 |
|
|
| 263 |
|
Interest on interest-bearing deposits at other financial institutions |
|
| 10 |
|
|
| 10 |
|
|
| 11 |
|
|
| 10 |
|
|
| 22 |
|
Interest on federal funds sold |
|
| 985 |
|
|
| 1,198 |
|
|
| 1,060 |
|
|
| 1,135 |
|
|
| 1,147 |
|
Total interest income |
|
| 31,218 |
|
|
| 31,874 |
|
|
| 32,464 |
|
|
| 34,286 |
|
|
| 32,963 |
|
INTEREST EXPENSE: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest on interest-bearing demand deposits |
|
| 890 |
|
|
| 1,064 |
|
|
| 1,071 |
|
|
| 1,004 |
|
|
| 1,048 |
|
Interest on savings and NOW deposits |
|
| 389 |
|
|
| 390 |
|
|
| 467 |
|
|
| 391 |
|
|
| 221 |
|
Interest on money market deposits |
|
| 3,991 |
|
|
| 4,246 |
|
|
| 4,623 |
|
|
| 4,707 |
|
|
| 5,276 |
|
Interest on time deposits |
|
| 7,650 |
|
|
| 8,244 |
|
|
| 8,369 |
|
|
| 8,595 |
|
|
| 9,031 |
|
Interest on federal funds purchased |
|
| 25 |
|
|
| — |
|
|
| 28 |
|
|
| — |
|
|
| 65 |
|
Interest on subordinated debt |
|
| 779 |
|
|
| 788 |
|
|
| 804 |
|
|
| 799 |
|
|
| 812 |
|
Total interest expense |
|
| 13,724 |
|
|
| 14,732 |
|
|
| 15,362 |
|
|
| 15,496 |
|
|
| 16,453 |
|
Net interest income |
|
| 17,494 |
|
|
| 17,142 |
|
|
| 17,102 |
|
|
| 18,790 |
|
|
| 16,510 |
|
Provision for credit losses |
|
| (131 | ) |
|
| 328 |
|
|
| 144 |
|
|
| (543 | ) |
|
| — |
|
Net interest income after provision for credit losses |
|
| 17,625 |
|
|
| 16,814 |
|
|
| 16,958 |
|
|
| 19,333 |
|
|
| 16,510 |
|
NON-INTEREST INCOME: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposit account service charges |
|
| 573 |
|
|
| 559 |
|
|
| 557 |
|
|
| 538 |
|
|
| 530 |
|
Bank owned life insurance income |
|
| 319 |
|
|
| 319 |
|
|
| 316 |
|
|
| 308 |
|
|
| 302 |
|
Gain on retirement of subordinated debt |
|
| — |
|
|
| — |
|
|
| 145 |
|
|
| 68 |
|
|
| 60 |
|
Gain on equity securities |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 103 |
|
|
| — |
|
Loss on sale of other real estate owned |
|
| (685 | ) |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
Other non-interest income |
|
| 200 |
|
|
| 22 |
|
|
| 104 |
|
|
| 49 |
|
|
| 47 |
|
Total non-interest income |
|
| 407 |
|
|
| 900 |
|
|
| 1,122 |
|
|
| 1,066 |
|
|
| 939 |
|
NON-INTEREST EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
| 7,551 |
|
|
| 7,557 |
|
|
| 7,366 |
|
|
| 8,279 |
|
|
| 8,385 |
|
Furniture and equipment expenses |
|
| 758 |
|
|
| 884 |
|
|
| 799 |
|
|
| 1,141 |
|
|
| 1,016 |
|
Advertising and marketing |
|
| 296 |
|
|
| 469 |
|
|
| 571 |
|
|
| 530 |
|
|
| 481 |
|
Occupancy expenses |
|
| 365 |
|
|
| 293 |
|
|
| 400 |
|
|
| 318 |
|
|
| 396 |
|
Outside services |
|
| 460 |
|
|
| 688 |
|
|
| 625 |
|
|
| 1,290 |
|
|
| 1,173 |
|
Administrative expenses |
|
| 241 |
|
|
| 238 |
|
|
| 259 |
|
|
| 270 |
|
|
| 229 |
|
Other real estate owned expenses |
|
| 220 |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
Other operating expenses |
|
| 2,783 |
|
|
| 2,696 |
|
|
| 2,647 |
|
|
| 2,917 |
|
|
| 2,634 |
|
Total non-interest expenses |
|
| 12,674 |
|
|
| 12,825 |
|
|
| 12,667 |
|
|
| 14,745 |
|
|
| 14,314 |
|
Income before income tax expense |
|
| 5,358 |
|
|
| 4,889 |
|
|
| 5,413 |
|
|
| 5,654 |
|
|
| 3,135 |
|
Income tax expense |
|
| 1,258 |
|
|
| 836 |
|
|
| 896 |
|
|
| 1,064 |
|
|
| 682 |
|
Net income |
|
| 4,100 |
|
|
| 4,053 |
|
|
| 4,517 |
|
|
| 4,590 |
|
|
| 2,453 |
|
Preferred stock dividends |
|
| 539 |
|
|
| 539 |
|
|
| 539 |
|
|
| 539 |
|
|
| 539 |
|
Net income available to common shareholders |
| $ | 3,561 |
|
| $ | 3,514 |
|
| $ | 3,978 |
|
| $ | 4,051 |
|
| $ | 1,914 |
|
Earnings per common share, basic and diluted |
| $ | 0.48 |
|
| $ | 0.46 |
|
| $ | 0.52 |
|
| $ | 0.53 |
|
| $ | 0.25 |
|
Weighted average number of common shares, basic and diluted |
|
| 7,484,310 |
|
|
| 7,564,723 |
|
|
| 7,704,639 |
|
|
| 7,704,677 |
|
|
| 7,636,191 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UNAUDITED LOAN, DEPOSIT AND BORROWING DETAIL | ||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||
|
| March 31, 2026 |
|
| December 31, 2025* |
|
| March 31, 2025 |
|
| Percentage Change |
| ||||||||||||||||||||
|
| $ Amount |
|
| % of Total |
|
| $ Amount |
|
| % of Total |
|
| $ Amount |
|
| % of Total |
|
| Last 3 Mos |
|
| Last 12 Mos |
| ||||||||
LOANS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction and land development loans |
| $ | 299,043 |
|
|
| 16.0 | % |
| $ | 300,666 |
|
|
| 16.1 | % |
| $ | 344,816 |
|
|
| 18.8 | % |
|
| -0.5 | % |
|
| -13.3 | % |
Residential real estate loans |
|
| 448,290 |
|
|
| 23.9 | % |
|
| 441,578 |
|
|
| 23.7 | % |
|
| 451,324 |
|
|
| 24.6 | % |
|
| 1.5 | % |
|
| -0.7 | % |
Commercial real estate loans |
|
| 1,024,695 |
|
|
| 54.7 | % |
|
| 1,014,932 |
|
|
| 54.4 | % |
|
| 933,349 |
|
|
| 50.8 | % |
|
| 1.0 | % |
|
| 9.8 | % |
Commercial and industrial loans |
|
| 100,782 |
|
|
| 5.3 | % |
|
| 106,991 |
|
|
| 5.7 | % |
|
| 105,180 |
|
|
| 5.7 | % |
|
| -5.8 | % |
|
| -4.2 | % |
Consumer loans |
|
| 1,232 |
|
|
| 0.1 | % |
|
| 1,148 |
|
|
| 0.1 | % |
|
| 1,332 |
|
|
| 0.1 | % |
|
| 7.3 | % |
|
| -7.5 | % |
Total Gross Loans |
| $ | 1,874,042 |
|
|
| 100.0 | % |
| $ | 1,865,315 |
|
|
| 100.0 | % |
| $ | 1,836,001 |
|
|
| 100.0 | % |
|
| 0.5 | % |
|
| 2.1 | % |
Less: Allowance for credit losses |
|
| (19,049 | ) |
|
|
|
|
|
| (19,308 | ) |
|
|
|
|
|
| (19,460 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
Net deferred loan fees |
|
| (4,032 | ) |
|
|
|
|
|
| (4,174 | ) |
|
|
|
|
|
| (4,752 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
Net Loans |
| $ | 1,850,961 |
|
|
|
|
|
| $ | 1,841,833 |
|
|
|
|
|
| $ | 1,811,789 |
|
|
|
|
|
|
|
|
|
|
|
|
|
DEPOSITS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing deposits |
| $ | 359,113 |
|
|
| 18.8 | % |
| $ | 378,694 |
|
|
| 20.0 | % |
| $ | 345,319 |
|
|
| 18.1 | % |
|
| -5.2 | % |
|
| 4.0 | % |
Interest-bearing deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits |
|
| 120,700 |
|
|
| 6.3 | % |
|
| 119,407 |
|
|
| 6.3 | % |
|
| 106,033 |
|
|
| 5.6 | % |
|
| 1.1 | % |
|
| 13.8 | % |
Savings and NOW deposits |
|
| 138,667 |
|
|
| 7.2 | % |
|
| 121,905 |
|
|
| 6.4 | % |
|
| 124,049 |
|
|
| 6.5 | % |
|
| 13.8 | % |
|
| 11.8 | % |
Money market deposits |
|
| 545,804 |
|
|
| 28.5 | % |
|
| 499,334 |
|
|
| 26.3 | % |
|
| 511,925 |
|
|
| 26.8 | % |
|
| 9.3 | % |
|
| 6.6 | % |
Time deposit $250,000 or more |
|
| 478,971 |
|
|
| 25.0 | % |
|
| 490,594 |
|
|
| 25.8 | % |
|
| 541,772 |
|
|
| 28.4 | % |
|
| -2.4 | % |
|
| -11.6 | % |
Time deposit less than $250,000 |
|
| 271,470 |
|
|
| 14.2 | % |
|
| 289,250 |
|
|
| 15.2 | % |
|
| 279,227 |
|
|
| 14.6 | % |
|
| -6.1 | % |
|
| -2.8 | % |
Total Deposits |
| $ | 1,914,725 |
|
|
| 100.0 | % |
| $ | 1,899,184 |
|
|
| 100.0 | % |
| $ | 1,908,325 |
|
|
| 100.0 | % |
|
| 0.8 | % |
|
| 0.3 | % |
BORROWINGS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subordinated debt, net |
| $ | 70,035 |
|
|
| 100.0 | % |
| $ | 69,936 |
|
|
| 100.0 | % |
| $ | 72,138 |
|
|
| 100.0 | % |
|
| 0.1 | % |
|
| -2.9 | % |
Total Borrowings |
| $ | 70,035 |
|
|
| 100.0 | % |
| $ | 69,936 |
|
|
| 100.0 | % |
| $ | 72,138 |
|
|
| 100.0 | % |
|
| 0.1 | % |
|
| -2.9 | % |
Total Deposits and Borrowings |
| $ | 1,984,760 |
|
|
|
|
|
| $ | 1,969,120 |
|
|
|
|
|
| $ | 1,980,463 |
|
|
|
|
|
|
| 0.8 | % |
|
| 0.2 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core customer funding sources (1) |
| $ | 1,399,602 |
|
|
| 70.5 | % |
| $ | 1,400,678 |
|
|
| 71.1 | % |
| $ | 1,330,390 |
|
|
| 67.2 | % |
|
| -0.1 | % |
|
| 5.2 | % |
Brokered and listing service sources (2) |
|
| 515,123 |
|
|
| 26.0 | % |
|
| 498,506 |
|
|
| 25.3 | % |
|
| 577,935 |
|
|
| 29.2 | % |
|
| 3.3 | % |
|
| -10.9 | % |
Subordinated debt, net (3) |
|
| 70,035 |
|
|
| 3.5 | % |
|
| 69,936 |
|
|
| 3.6 | % |
|
| 72,138 |
|
|
| 3.6 | % |
|
| 0.1 | % |
|
| -2.9 | % |
Total Funding Sources |
| $ | 1,984,760 |
|
|
| 100.0 | % |
| $ | 1,969,120 |
|
|
| 100.0 | % |
| $ | 1,980,463 |
|
|
| 100.0 | % |
|
| 0.8 | % |
|
| 0.2 | % |
*Derived from audited financial statements
(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 $138.5 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 March 31, 2026. |
(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 | ||||||||||||||||||||||||
| ||||||||||||||||||||||||
|
| For the three months ended March 31, 2026 |
|
| For the three months ended March 31, 2025 |
| ||||||||||||||||||
|
| Average Balance |
|
| Interest Income/ Expense(3)(4) |
|
| Average Yields/ Rate (annualized)(3)(4) |
|
| Average Balance |
|
| Interest Income/ Expense(3)(4) |
|
| Average Yields/ Rate (annualized)(3)(4) |
| ||||||
ASSETS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans(1)(2) |
| $ | 1,863,613 |
|
| $ | 29,518 |
|
|
| 6.42 | % |
| $ | 1,838,358 |
|
| $ | 31,111 |
|
|
| 6.86 | % |
Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
| 49,742 |
|
|
| 418 |
|
|
| 3.41 | % |
|
| 53,143 |
|
|
| 420 |
|
|
| 3.21 | % |
Tax-exempt |
|
| 36,164 |
|
|
| 363 |
|
|
| 4.07 | % |
|
| 35,200 |
|
|
| 333 |
|
|
| 3.84 | % |
Interest-bearing deposits at other financial institutions |
|
| 1,103 |
|
|
| 10 |
|
|
| 3.68 | % |
|
| 2,039 |
|
|
| 22 |
|
|
| 4.38 | % |
Federal funds sold |
|
| 101,091 |
|
|
| 985 |
|
|
| 3.95 | % |
|
| 109,651 |
|
|
| 1,147 |
|
|
| 4.24 | % |
Total interest-earning assets |
| $ | 2,051,713 |
|
| $ | 31,294 |
|
|
| 6.19 | % |
| $ | 2,038,391 |
|
| $ | 33,033 |
|
|
| 6.57 | % |
Other assets |
|
| 128,115 |
|
|
|
|
|
|
|
|
|
|
| 117,070 |
|
|
|
|
|
|
|
|
|
Total assets |
| $ | 2,179,828 |
|
|
|
|
|
|
|
|
|
| $ | 2,155,461 |
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders’ Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand deposits |
| $ | 119,624 |
|
| $ | 890 |
|
|
| 3.02 | % |
| $ | 111,413 |
|
| $ | 1,048 |
|
|
| 3.81 | % |
Savings and NOW deposits |
|
| 134,931 |
|
|
| 389 |
|
|
| 1.17 | % |
|
| 67,851 |
|
|
| 221 |
|
|
| 1.32 | % |
Money market deposits |
|
| 491,732 |
|
|
| 3,991 |
|
|
| 3.29 | % |
|
| 537,733 |
|
|
| 5,276 |
|
|
| 3.98 | % |
Time deposits |
|
| 773,632 |
|
|
| 7,650 |
|
|
| 4.01 | % |
|
| 798,007 |
|
|
| 9,031 |
|
|
| 4.59 | % |
Total interest-bearing deposits |
| $ | 1,519,919 |
|
| $ | 12,920 |
|
|
| 3.45 | % |
| $ | 1,515,004 |
|
| $ | 15,576 |
|
|
| 4.17 | % |
Federal funds purchased |
|
| 2,557 |
|
|
| 25 |
|
|
| 3.97 | % |
|
| 5,610 |
|
|
| 65 |
|
|
| 4.70 | % |
Subordinated debt, net |
|
| 69,996 |
|
|
| 779 |
|
|
| 4.51 | % |
|
| 73,043 |
|
|
| 812 |
|
|
| 4.51 | % |
Total interest-bearing liabilities |
| $ | 1,592,472 |
|
| $ | 13,724 |
|
|
| 3.50 | % |
| $ | 1,593,657 |
|
| $ | 16,453 |
|
|
| 4.19 | % |
Demand deposits and other liabilities |
|
| 369,543 |
|
|
|
|
|
|
|
|
|
|
| 353,711 |
|
|
|
|
|
|
|
|
|
Total liabilities |
| $ | 1,962,015 |
|
|
|
|
|
|
|
|
|
| $ | 1,947,368 |
|
|
|
|
|
|
|
|
|
Stockholders’ Equity |
|
| 217,813 |
|
|
|
|
|
|
|
|
|
|
| 208,093 |
|
|
|
|
|
|
|
|
|
Total Liabilities and Stockholders’ Equity |
| $ | 2,179,828 |
|
|
|
|
|
|
|
|
|
| $ | 2,155,461 |
|
|
|
|
|
|
|
|
|
Interest Rate Spread |
|
|
|
|
|
|
|
|
|
| 2.69 | % |
|
|
|
|
|
|
|
|
|
| 2.38 | % |
Net Interest Income |
|
|
|
|
| $ | 17,570 |
|
|
|
|
|
|
|
|
|
| $ | 16,580 |
|
|
|
|
|
Net Interest Margin |
|
|
|
|
|
|
|
|
|
| 3.47 | % |
|
|
|
|
|
|
|
|
|
| 3.30 | % |
(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 | ||||||||
|
| At or For the Three Months Ended |
| |||||
|
| March 31, 2026 |
|
| March 31, 2025 |
| ||
Per share Data and Shares Outstanding |
|
|
|
|
|
|
|
|
Earnings per common share (basic and diluted) |
| $ | 0.48 |
|
| $ | 0.25 |
|
Book value per common share |
| $ | 25.63 |
|
| $ | 23.67 |
|
Weighted average common shares (basic and diluted) |
|
| 7,484,310 |
|
|
| 7,636,191 |
|
Common shares outstanding at end of period |
|
| 7,324,049 |
|
|
| 7,703,197 |
|
Performance Ratios |
|
|
|
|
|
|
|
|
Return on average assets (annualized) |
|
| 0.76 | % |
|
| 0.46 | % |
Return on average equity (annualized) |
|
| 7.63 | % |
|
| 4.78 | % |
Return on average common equity (annualized) |
|
| 7.58 | % |
|
| 4.29 | % |
Yield on earning assets (FTE)(2) (annualized) |
|
| 6.19 | % |
|
| 6.57 | % |
Cost of interest-bearing liabilities (annualized) |
|
| 3.50 | % |
|
| 4.19 | % |
Net interest spread (FTE)(2) (annualized) |
|
| 2.69 | % |
|
| 2.38 | % |
Net interest margin (FTE)(2) (annualized) |
|
| 3.47 | % |
|
| 3.30 | % |
Non-interest income as a percentage of average assets (annualized) |
|
| 0.08 | % |
|
| 0.18 | % |
Non-interest expense to average assets (annualized) |
|
| 2.36 | % |
|
| 2.69 | % |
Efficiency ratio(3) |
|
| 70.80 | % |
|
| 82.03 | % |
Allowance for Credit Losses |
|
|
|
|
|
|
|
|
Allowance for credit losses (ACL) |
|
|
|
|
|
|
|
|
Beginning balance, ACL - loans |
| $ | 19,308 |
|
| $ | 19,450 |
|
Add: recoveries |
|
| 22 |
|
|
| 10 |
|
Less: charge-offs |
|
| (281 | ) |
|
| — |
|
Add: provision for credit losses - loans |
|
| — |
|
|
| — |
|
Ending balance, ACL - loans |
| $ | 19,049 |
|
| $ | 19,460 |
|
|
|
|
|
|
|
|
|
|
Beginning balance, reserve for unfunded commitment (RUC) |
| $ | 335 |
|
| $ | 287 |
|
Provision for unfunded commitments, net |
|
| (131 | ) |
|
| — |
|
Ending balance, RUC |
| $ | 204 |
|
| $ | 287 |
|
Total allowance for credit losses |
| $ | 19,253 |
|
| $ | 19,747 |
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses on loans to total gross loans |
|
| 1.02 | % |
|
| 1.06 | % |
Allowance for credit losses on loans to non-performing loans |
|
| 35.44 | % |
|
| 89.82 | % |
Net charge-offs to average gross loans (annualized) |
|
| 0.06 | % |
|
| 0.00 | % |
Concentration Ratios |
|
|
|
|
|
|
|
|
Commercial real estate loans to total capital (4) |
|
| 367.59 | % |
|
| 388.24 | % |
Construction loans to total capital (5) |
|
| 100.13 | % |
|
| 115.56 | % |
Past due and Non-performing Assets |
|
|
|
|
|
|
|
|
Loans 30-89 days past due and accruing to total gross loans |
|
| 0.95 | % |
|
| 2.19 | % |
Loans 90 days past due and accruing to total gross loans |
|
| 0.00 | % |
|
| 0.00 | % |
Non-accrual loans to total gross loans |
|
| 2.88 | % |
|
| 1.18 | % |
Other real estate owned, net |
| $ | 1,094 |
|
| $ | — |
|
Non-performing loans |
| $ | 53,751 |
|
| $ | 21,665 |
|
Non-performing assets to total assets |
|
| 2.47 | % |
|
| 0.97 | % |
Regulatory Capital Ratios (Bank only) (1) |
|
|
|
|
|
|
|
|
Total risk-based capital ratio |
|
| 15.64 | % |
|
| 15.83 | % |
Tier 1 risk-based capital ratio |
|
| 14.63 | % |
|
| 14.78 | % |
Leverage ratio |
|
| 12.81 | % |
|
| 12.90 | % |
Common equity tier 1 ratio |
|
| 14.63 | % |
|
| 14.78 | % |
Other information |
|
|
|
|
|
|
|
|
Common shares closing stock price |
| $ | 22.20 |
|
| $ | 16.72 |
|
Total equity / total assets |
|
| 9.67 | % |
|
| 9.43 | % |
Average equity / average assets |
|
| 9.99 | % |
|
| 9.65 | % |
Number of full time equivalent employees |
|
| 168 |
|
|
| 182 |
|
Number of full service branch offices |
|
| 7 |
|
|
| 6 |
|
(1 | ) | Regulatory capital ratios as of March 31, 2026 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 | ||||||||
| ||||||||
|
| For the three months ended March 31, |
| |||||
|
| 2026 |
|
| 2025 |
| ||
Net interest margin (FTE) |
|
|
|
|
|
|
|
|
Net interest income (GAAP) |
| $ | 17,494 |
|
| $ | 16,510 |
|
FTE adjustment on tax-exempt securities |
|
| 76 |
|
|
| 70 |
|
Net interest income (FTE) (non-GAAP) |
|
| 17,570 |
|
|
| 16,580 |
|
|
|
|
|
|
|
|
|
|
Average interest-earning assets |
|
| 2,051,713 |
|
|
| 2,038,391 |
|
Net interest margin (GAAP) |
|
| 3.46 | % |
|
| 3.28 | % |
Net interest margin (FTE) (non-GAAP) |
|
| 3.47 | % |
|
| 3.30 | % |
|
| For the three months ended March 31, |
| |||||
|
| 2026 |
|
| 2025 |
| ||
Yield on earning assets (FTE) |
|
|
|
|
|
|
|
|
Total interest income (GAAP) |
| $ | 31,218 |
|
| $ | 32,963 |
|
FTE adjustment on tax-exempt securities |
|
| 76 |
|
|
| 70 |
|
Total interest income (FTE) (non-GAAP) |
|
| 31,294 |
|
|
| 33,033 |
|
|
|
|
|
|
|
|
|
|
Average interest-earning assets |
|
| 2,051,713 |
|
|
| 2,038,391 |
|
Yield on earning assets (GAAP) |
|
| 6.17 | % |
|
| 6.56 | % |
Yield on earning assets (FTE) (non-GAAP) |
|
| 6.19 | % |
|
| 6.57 | % |
|
| For the three months ended March 31, |
| |||||
|
| 2026 |
|
| 2025 |
| ||
Net interest spread (FTE) |
|
|
|
|
|
|
|
|
Yield on earning assets (GAAP) |
|
| 6.17 | % |
|
| 6.56 | % |
Yield on earning assets (FTE) (non-GAAP) |
|
| 6.19 | % |
|
| 6.57 | % |
|
|
|
|
|
|
|
|
|
Yield on interest-bearing liabilities (GAAP) |
|
| 3.50 | % |
|
| 4.19 | % |
|
|
|
|
|
|
|
|
|
Net interest spread (GAAP) |
|
| 2.67 | % |
|
| 2.37 | % |
Net interest spread (FTE) (non-GAAP) |
|
| 2.69 | % |
|
| 2.38 | % |
Contact: Billy Freesmeier
Chief of Staff
(703) 481-4579
