MainStreet Bancshares Reports Q1 2025 Financial Results with $2.5 Million Net Income

MainStreet Bancshares, Inc. reported its financial results for the first quarter of 2025, revealing a net income of $2.5 million, a decrease from $3.3 million in the same period last year. The company's earnings per share were $0.25, down from $0.36 in the prior year. Total interest income increased by $0.5 million to $33 million, primarily driven by a rise in interest and fees on loans, which reached $31.1 million. However, total interest expense decreased by $0.4 million to $16.5 million, resulting in a net interest income of $16.6 million, up from $15.7 million a year earlier.

In terms of asset management, MainStreet's total assets decreased slightly by $5.3 million to $2.22 billion as of March 31, 2025. This decline was attributed to reductions in cash and cash equivalents, as well as other assets, which were partially offset by an increase in net loans, which rose by $1.2 million to $1.81 billion. The company reported a stable loan portfolio, with non-performing loans remaining consistent at $21.7 million, reflecting a proactive approach to credit risk management.

Strategically, MainStreet has pivoted away from its Banking-as-a-Service initiative to focus on core community banking activities. This decision was made to enhance operational efficiency and align with the company's long-term growth objectives. The company continues to emphasize its commitment to serving the Northern Virginia and greater Washington, D.C. metropolitan areas, where it operates six branches. Additionally, MainStreet Community Capital, LLC, a subsidiary focused on community development, is actively pursuing New Market Tax Credit allocations to support investments in low-income communities.

Operationally, MainStreet's total deposits increased marginally to $1.91 billion, with a notable rise in non-interest-bearing demand deposits, which grew by 6.5% to $345.3 million. However, interest-bearing demand deposits saw a significant decline of 24.1%. The company reported a total employee headcount of 150, reflecting its commitment to maintaining a skilled workforce to support its banking operations. Looking ahead, MainStreet anticipates continued growth in its core banking segment while managing the challenges posed by market conditions and regulatory requirements.