Business
MainStreet Bancshares Inc. Reports Third Quarter Results
Increase in Core Deposits, a High-Quality Loan Portfolio and Strong Capital FAIRFAX, Va., Oct. 28, 2024 /PRNewswire/ -- MainStreet Bancshares, Inc. (Nasdaq:
About this update from Mainstreet Bancshares, Inc.
[{"type":"text","content":"Increase in Core Deposits, a High-Quality Loan Portfolio and Strong Capital\nFAIRFAX, Va., Oct. 28, 2024 /PRNewswire/ -- MainStreet Bancshares, Inc. (Nasdaq: MNSB & MNSBP), the financial holding company for MainStreet Bank, reported a loss of -$0.04 per common share for the third quarter of 2024 as it dealt decisively with a small number of nonperforming real estate loans. Year-to-date 2024 earnings per common share are $0.60. The Company remains strongly capitalized.\n\n \n \n \n \n \n \n\n \n\"Our third quarter annualized net interest margin was impacted by $984,000 in accrued interest income that was reversed in relation to loans placed on nonaccrual status,\" said Alex Vari, Chief Accountant for MainStreet Bank. \"This resulted in a quarterly net interest margin of 3.05% and a year-to-date net interest margin of 3.19%.\" \nThe Company charged off $1.9 million of nonperforming loans during the quarter and allocated $1 million to provision expense to augment loan growth and ensure the Allowance for Credit Losses remains directionally consistent for the purposes of growth and quality.\nIn response to the bank's credit quality, Chris Johnston, Chief Credit Officer for MainStreet Bank, expanded, \"this quarter showed the underlying strength of a portfolio shaped by a rigorous credit culture. The total principal losses incurred year-to-date 2024 approximates just 0.1% of total loans. Our lending team has demonstrated great resolve in addressing troubled loans, both by working with borrowers and by finding acceptable solutions minimizing the impact on shareholder value. With that, we expect the level of problem loans to improve from this point.\"\nTotal deposits expanded to $1.9 billion. The Bank continues to attract healthy amounts of core deposits, reaching $1.47 billion, or 78% of total deposits. \n\"The DC Metropolitan area is a vibrant market. Our Business Bankers continue to perform, growing noninterest bearing core deposits by $33 million during the quarter,\" noted Abdul Hersiburane, President of MainStreet Bank. \"In an exercise of foresight, we structured noncore deposits with immediate rate repricing or callable options. We have now $233 million of our $423 million noncore deposits available to reprice as rates fall.\"\nIn 2021, the Board and management decided to make an investment in technology that would best serve cl...