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MainStreet Bancshares Inc (MNSB)
NASDAQ:MNSB
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MainStreet Bancshares
(NASDAQ:MNSB)
55Neutral
MainStreet Bancshares (MNSB) vs. S&P 500 (SPY)
Market Cap
$124.24M
Dividend Yield2.45%
Average Volume (3M)9.90K
Price to Earnings (P/E)14.4
Beta (1Y)0.82
Revenue Growth7.91%
EPS Growth-149.17%
CountryUS
Employees186
SectorFinancial
Sector Strength77
IndustryBanking
Share Statistics
EPS (TTM)-1.60
Shares Outstanding7,603,265
10 Day Avg. Volume9,704
30 Day Avg. Volume9,903
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)2.02
Price to Cash Flow (P/CF)7.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
MainStreet Bancshares Business Overview & Revenue Model
Company DescriptionMainStreet Bancshares, Inc. (MNSB) operates as a bank holding company for MainStreet Bank, providing a full range of banking products and services to small and medium-sized businesses, professionals, and individuals. The company, headquartered in Fairfax, Virginia, offers deposit accounts, loans, credit facilities, and treasury management services, emphasizing personalized customer service and community involvement as part of its core offerings.
How the Company Makes MoneyMainStreet Bancshares generates revenue primarily through its traditional banking operations, which include collecting interest on loans and advances, earning fees from providing banking and financial services, and investing in various securities. Interest income from loans is a significant portion of their revenue, which they earn by charging interest rates to borrowers that are higher than the rates paid to depositors. Additionally, the company earns non-interest income through service fees, such as those for account maintenance, transaction processing, and financial advisory services. The bank's strategic focus on serving small and medium-sized enterprises and professionals supports its growth in loan origination and deposit gathering, further contributing to its revenue streams. Partnerships with financial technology companies and community engagement also play a role in expanding their service offerings and customer base, enhancing profitability.
MainStreet Bancshares Financial Statement Overview
Summary
MainStreet Bancshares demonstrates robust revenue growth and profitability on the income statement. However, there are areas needing improvement, particularly in operational efficiencies and cash flow stability. The balance sheet is stable with reasonable leverage, but the declining return on equity suggests inefficiencies in using equity capital. Overall, financial performance is solid but requires attention to operational and cash flow optimization.Income Statement
MainStreet Bancshares has shown consistent revenue growth over the years, with a strong gross profit margin of 85.4% and a solid net profit margin of 8.4% in the TTM period. However, the EBIT margin of 32.1% suggests that operating efficiencies could be improved. Overall, the company demonstrates robust revenue growth but has room for improvement in operational efficiencies.75
Positive
Balance Sheet
The company maintains a moderate debt-to-equity ratio of 0.32, which is healthy for the banking industry, showing prudent leverage management. The equity ratio of 10.2% indicates a solid capital base, but there is a slight decline in return on equity at 5.0%, suggesting that profitability from equity investment could be enhanced. The balance sheet is stable but could benefit from improved equity utilization.68
Positive
Cash Flow
MainStreet Bancshares exhibits volatility in cash flow with a significant drop in operating cash flows and free cash flow. The operating cash flow to net income ratio is notably low at 0.17, highlighting potential cash generation challenges. Free cash flow growth is negative, indicating liquidity management issues. Cash flow stability requires attention to support ongoing operations.60
Neutral
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 135.00M | 124.12M | 74.84M | 59.65M | 53.47M | 44.30M | Gross Profit |
| 115.33M | 122.99M | 72.50M | 57.61M | 51.58M | 42.69M | EBIT |
| 43.28M | 119.00M | 47.22M | 27.96M | 19.56M | 17.30M | EBITDA |
| 15.48M | 0.00 | 79.20M | 60.59M | 59.18M | 56.30M | Net Income Common Stockholders |
| 11.34M | 26.59M | 26.67M | 22.17M | 15.72M | 13.95M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 114.51M | 114.51M | 111.56M | 161.74M | 223.35M | 146.17M | Total Assets |
| 2.04B | 2.04B | 1.93B | 1.65B | 1.64B | 1.28B | Total Debt |
| 94.54M | 72.64M | 172.25M | 29.29M | 14.83M | 54.80M | Net Debt |
| 40.96M | 19.06M | 123.31M | -32.53M | -61.10M | 1.43M | Total Liabilities |
| 1.81B | 1.81B | 1.73B | 29.29M | 14.83M | 54.80M | Stockholders Equity |
| 221.52M | 221.52M | 198.28M | 188.79M | 167.66M | 137.03M |
| Cash Flow | Free Cash Flow | ||||
| 580.00K | 25.63M | 25.76M | 56.09M | 15.73M | 15.70M | Operating Cash Flow |
| 1.96M | 31.63M | 33.54M | 60.39M | 17.02M | 16.69M | Investing Cash Flow |
| -122.83M | -130.75M | -228.74M | -60.52M | -313.79M | -161.41M | Financing Cash Flow |
| 204.56M | 83.03M | 232.59M | -14.20M | 339.45M | 151.49M |
MainStreet Bancshares Technical Analysis
Negative
16.34
Price Trends
16.77
Negative
17.50
Negative
17.24
Negative
Market Momentum
-0.14
Negative
43.38
Neutral
13.29
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MNSB, the sentiment is Negative. The current price of 16.34 is below the 20-day moving average (MA) of 16.46, below the 50-day MA of 16.77, and below the 200-day MA of 17.24, indicating a bearish trend. The MACD of -0.14 indicates Negative momentum. The RSI at 43.38 is Neutral, neither overbought nor oversold. The STOCH value of 13.29 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MNSB.
MainStreet Bancshares Risk Analysis
MainStreet Bancshares disclosed 42 risk factors in its most recent earnings report. MainStreet Bancshares reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
MainStreet Bancshares Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $151.98M | 16.10 | 8.61% | 1.85% | 6.90% | 21.84% | |
70 Outperform | $798.13M | 10.74 | 8.80% | 3.03% | 11.77% | 7.54% | |
67 Neutral | $2.17B | 17.86 | 5.64% | 2.83% | 5.40% | 16.13% | |
64 Neutral | $13.80B | 10.64 | 9.23% | 4.22% | 17.66% | -7.66% | |
63 Neutral | $190.42M | 12.87 | 6.66% | ― | 22.60% | 284.38% | |
59 Neutral | $629.76M | ― | -3.76% | 3.74% | 9.77% | -147.04% | |
55 Neutral | $124.24M | 14.43 | -4.65% | 2.45% | 7.91% | -149.17% |
* Financial Sector Average
Performance Comparison
MNSB
MainStreet Bancshares
16.34
-1.84
-10.12%
EGBN
Eagle Bancorp
20.39
-1.18
-5.47%
OPOF
Old Point Financial
29.93
13.88
86.48%
SBCF
Seacoast Banking Of Florida
25.31
1.55
6.52%
UVSP
Univest Of Pennsylvania
27.52
7.99
40.91%
FVCB
FVCBankcorp
10.46
-1.61
-13.34%
MainStreet Bancshares Earnings Call Summary
Earnings Call Date: Jan 27, 2025 | % Change Since: -6.04% | Next Earnings Date: Apr 22, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a mixed performance. While there are significant achievements like core deposit growth, loan portfolio expansion, and strategic reductions in non-performing assets, the financial performance was negatively impacted by intangible asset impairment and high deposit costs. The bank remains strongly capitalized and has a strategic focus on improving its metrics in 2025.Highlights
Core Deposit Growth
MainStreet Bank added $187 million in core deposits during 2024, representing a strategic increase to capitalize on market conditions.
Reduction in Non-Performing Assets
Non-performing assets were reduced by 62% over the course of 2024, ending with a balance of $21.7 million.
Loan Portfolio Growth
The loan portfolio experienced a 6% growth in 2024, with a focus on owner-occupied and owner-operated businesses.
Successful Implementation of Avenue Version 1
The Avenue software was launched on October 1, 2024, fully supporting the cannabis opportunity with initial alpha testing completed successfully.
Strong Capitalization and Prudent Management
Despite challenges, MainStreet Bank remains strongly capitalized, with proactive management of classified loans and stress testing.
Lowlights
Intangible Asset Impairment
A complete write-down of intangible assets negatively impacted performance ratios, with a $2.14 reduction in earnings per share.
Negative Financial Performance
Reported a loss of $1.60 per share, a return on average assets of negative 0.47%, and a return on average equity of negative 4.44% for fiscal year 2024.
High Deposit Costs
Competing with super regional and multinational banks resulted in high deposit costs, compressing net interest margins.
Challenges in Venue Software Development
Implementation delays affected expectations for the Venue SaaS solution, leading to a strategic focus shift and personnel reductions.
Company Guidance
In the call, MainStreet Bancshares, Inc. provided detailed guidance on their performance metrics for fiscal year 2024 and expectations for 2025. They reported a net loss of $1.60 per share, with a return on average assets of negative 0.47% and a return on average equity of negative 4.44%. Their net interest margin stood at 3.13%. The year was impacted by an impairment of intangible assets, which negatively affected earnings per share by $2.14, ROAA by 76 basis points, and ROAE by 724 basis points. In 2024, they reversed $1.9 million of interest income and had net charge-offs of $4.5 million, with an additional provision expense of $2.9 million. For 2025, they anticipate low-single-digit loan growth and have a strategic focus on reducing non-performing assets and lowering funding costs. The tangible book value saw a positive effect of $0.48 per share due to the impairment. The company aims to leverage its Venue cannabis payment solution to capture a share of the $35.2 billion U.S. legal cannabis retail market projected for 2025. They also plan to improve their run rate expenses by 40% in 2025.MainStreet Bancshares Corporate Events
Business Operations and StrategyFinancial Disclosures
MainStreet Bancshares Reports 2024 Loss, Eyes Growth
Neutral
Jan 27, 2025
On January 27, 2025, MainStreet Bancshares announced a $9.98 million loss for the year 2024, primarily due to the impairment of capitalized intangible software related to its new Avenu Banking-as-a-Service platform. Despite the loss, MainStreet remains strongly capitalized, with a healthy net interest margin and significant growth in deposits. The company’s strategic moves to optimize funding costs and expand its loan portfolio signal a positive outlook for future financial performance. The Avenu platform, although impaired, continues to be a cornerstone for fintech partnerships, aiding MainStreet in accessing new customer segments and revenue streams.
Business Operations and StrategyFinancial Disclosures
MainStreet Bancshares Reschedules Earnings Call to January 27
Neutral
Jan 17, 2025
On January 17, 2025, MainStreet Bancshares, Inc. announced a rescheduling of its virtual webcast and quarterly earnings conference call to January 27, 2025. During this event, the company will discuss its fourth-quarter and year-end results and provide updates on recent activities, which could impact its operational strategies and stakeholder interests.
Business Operations and Strategy
MainStreet Bancshares to Attend KBW Fintech Conference
Neutral
Nov 13, 2024
MainStreet Bancshares, Inc. is set to participate in the KBW Fintech Conference in New York on November 13-14, 2024, showcasing their management discussion materials. This participation highlights the company’s engagement with the fintech community and offers insights into their strategies, which will be accessible on their website for interested parties.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.