MainStreet Bank (NASDAQ:MNSB) Posts Earnings Results, Misses Expectations By $0.03 EPS

MainStreet Bank (NASDAQ:MNSB) posted its earnings results on Monday. The company reported $0.46 EPS for the quarter, missing analysts’ consensus estimates of $0.49 by ($0.03), FiscalAI reports. The business had revenue of $2.24 million during the quarter, compared to analysts’ expectations of $19.60 million. MainStreet Bank had a net margin of 11.51% and a return on equity of 8.37%.

Here are the key takeaways from MainStreet Bank’s conference call:

• Reported 2025 results with EPS $1.76, ROA 0.73%, ROTCE 7.24% and a net interest margin of 3.46%; net interest income grew 11% year‑over‑year and management expects further NIM improvement and funding cost relief in 2026.
• Deposit strategy is working — cost of deposits fell by 71 basis points YoY, management is expanding branches (7th branch opening in Middleburg) and already sourced over $100 million of low‑cost deposits in the new market.
• Share repurchase program is active: repurchased 209,000 shares in the quarter at a price 28% accretive to book and refreshed buyback capacity to $10 million, signaling focus on shareholder return.
• Credit and capital profile remains solid — net charge‑offs were virtually zero, portfolio diversification reduced CRE concentration, classified assets 2.69% and nonaccruals 1.69%, with post‑stress CET1 of 11.8% well above regulatory thresholds.
• The bank recorded $600,000 of non‑recurring interest reversals from two relationships moved to non‑accrual and its estimated worst‑case stress loss rose to $62.9 million, items that warrant monitoring for credit risk.

MainStreet Bank Trading Up 2.2%

NASDAQ:MNSB opened at $20.61 on Wednesday. MainStreet Bank has a 12 month low of $15.00 and a 12 month high of $22.98. The company has a debt-to-equity ratio of 0.37, a current ratio of 1.07 and a quick ratio of 1.07. The firm has a market capitalization of $158.82 million, a PE ratio of 11.71 and a beta of 0.62. The business’s 50-day moving average is $20.27 and its two-hundred day moving average is $20.31.

Insider Buying and Selling at MainStreet Bank

In other MainStreet Bank news, CFO Thomas J. Chmelik sold 7,238 shares of the company’s stock in a transaction that occurred on Tuesday, December 9th. The stock was sold at an average price of $20.09, for a total transaction of $145,411.42. Following the sale, the chief financial officer owned 63,761 shares in the company, valued at $1,280,958.49. This represents a 10.19% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Over the last ninety days, insiders have bought 848 shares of company stock valued at $16,123. 9.28% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in MNSB. Millennium Management LLC raised its position in MainStreet Bank by 156.1% in the third quarter. Millennium Management LLC now owns 32,052 shares of the company’s stock worth $668,000 after acquiring an additional 19,537 shares in the last quarter. Alliancebernstein L.P. raised its position in MainStreet Bank by 2.7% during the third quarter. Alliancebernstein L.P. now owns 674,163 shares of the company’s stock valued at $14,043,000 after acquiring an additional 17,515 shares in the last quarter. Creative Planning lifted its stake in shares of MainStreet Bank by 5.6% in the 3rd quarter. Creative Planning now owns 22,169 shares of the company’s stock valued at $462,000 after purchasing an additional 1,169 shares during the last quarter. Mendon Capital Advisors Corp boosted its stake in shares of MainStreet Bank by 18.8% during the 3rd quarter. Mendon Capital Advisors Corp now owns 38,526 shares of the company’s stock worth $752,000 after acquiring an additional 6,098 shares in the last quarter. Finally, UBS Group AG grew its holdings in MainStreet Bank by 3,454.5% during the third quarter. UBS Group AG now owns 134,821 shares of the company’s stock valued at $2,808,000 after purchasing an additional 131,028 shares during the last quarter. Institutional investors and hedge funds own 52.29% of the company’s stock.

Analysts Set New Price Targets

Several analysts have recently issued reports on MNSB shares. Weiss Ratings reiterated a “sell (d+)” rating on shares of MainStreet Bank in a research note on Monday, December 29th. Wall Street Zen cut shares of MainStreet Bank from a “buy” rating to a “hold” rating in a report on Sunday, November 2nd. Finally, Zacks Research upgraded MainStreet Bank from a “strong sell” rating to a “hold” rating in a research report on Monday, December 29th. One analyst has rated the stock with a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company has an average rating of “Reduce”.

About MainStreet Bank

MainStreet Bank Group, Inc (NASDAQ: MNSB) is the bank holding company for MainStreet Bank, a community bank headquartered in Westborough, Massachusetts. Through its subsidiary, the company provides a full range of commercial and consumer banking services designed to meet the financial needs of individuals, small businesses, and non-profit organizations. Its core focus is on building long‐term relationships within the communities it serves.

MainStreet Bank’s product suite includes deposit accounts such as checking, savings, money market and certificate of deposit offerings, as well as a variety of lending solutions.