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MainStreet Bancshares
(NASDAQ:MNSB)
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Rating:76Outperform
Price Target:
$29.00
▲(16.47% Upside)
Action:Reiterated
Date:08/21/26
MNSB scores well primarily on improving financial performance (profit and cash flow recovery with moderate leverage) and a supportive earnings outlook (loan growth target, stable NIM and disciplined expenses), tempered by ongoing credit-quality overhang from nonperforming/classified assets and slightly negative recent revenue growth. Technicals are constructive (price above key moving averages with positive MACD), while valuation is reasonable (P/E ~12.4 with a modest dividend yield).
Positive Factors
Profitability and Cash Generation Recovery
The return to positive earnings alongside strong operating and free cash flow indicates improved earnings quality and internal funding capacity. This gives the bank greater flexibility to support lending, absorb credit costs and maintain capital without relying heavily on external funding.
Negative Factors
Elevated Classified and Nonaccrual Assets
The sizable classified and nonaccrual portfolio remains a material balance-sheet overhang. Resolution could require additional provisions or charge-offs, constrain management attention and limit capital deployment until recoveries become clearer.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability and Cash Generation Recovery
The return to positive earnings alongside strong operating and free cash flow indicates improved earnings quality and internal funding capacity. This gives the bank greater flexibility to support lending, absorb credit costs and maintain capital without relying heavily on external funding.
Read all positive factors
MainStreet Bancshares Key Performance Indicators (KPIs)
Any
Loan Portfolio Breakdown
Analyzes the composition of the company's loan portfolio, highlighting areas of lending focus and potential risk exposure. This insight helps assess credit risk management and growth opportunities in different lending segments.
Analyzes the composition of the company's loan portfolio, highlighting areas of lending focus and potential risk exposure. This insight helps assess credit risk management and growth opportunities in different lending segments.
Data provided by:
The Fly
The FlyMainStreet Bancshares (MNSB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$175.61M
Dividend Yield1.59%
Average Volume (3M)34.58K
Price to Earnings (P/E)12.4
Beta (1Y)0.57
Revenue Growth-6.41%
EPS GrowthN/A
CountryUS
Employees171
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)2.03
Shares Outstanding7,121,076
10 Day Avg. Volume34,867
30 Day Avg. Volume34,578
Financial Highlights & Ratios
PEG Ratio-0.06
Price to Book (P/B)0.71
Price to Sales (P/S)1.15
P/FCF Ratio14.65
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)2.26
Revenue Forecast (FY)$85.70M
MainStreet Bancshares Business Overview & Revenue Model
Company Description
MainStreet Bancshares, Inc. operates as the parent entity for MainStreet Bank, which delivers a comprehensive suite of financial products and services. Its diverse offerings cater to individuals, small to mid-sized businesses, and professional ser...
How the Company Makes Money
MainStreet Bancshares primarily makes money through its banking subsidiary by earning net interest income and generating noninterest income. Net interest income is produced by collecting interest on loans and other interest-earning assets (such as...
MainStreet Bancshares Earnings Call Summary
Earnings Call Date:Jul 20, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 20, 2026
Earnings Call Sentiment Positive
The call presented multiple positive operational and financial trends: EPS improvement to $0.58, net interest income growth (>4% q/q), NIM expansion to 3.53%, loan growth (4% q/q, 5% YTD), strong liquidity ($810M available, covering 42% of deposits), capital resilience with post-stress CET1 above regulatory thresholds, and share buybacks contributing to a 9% YoY book value increase. Challenges were acknowledged and managed: a meaningful pool of classified and nonaccrual loans ($54.4M classified performing, $61.3M nonaccrual), two large cases tied up in court, expected deposit pricing pressure and modest funding cost headwinds, and temporary throttling of buybacks due to CRE concentration. Overall, the positives (earnings momentum, margin stability, liquidity and capital strength, loan growth and long-term low loss history) outweigh the manageable credit and funding challenges highlighted by management.Positive Updates
Earnings per Share and Net Interest Income Growth
EPS increased to $0.58 for the quarter while net interest income grew over 4% quarter-over-quarter, marking the third straight quarter of net interest income expansion.
Negative Updates
Nonperforming and Classified Assets
Management is working toward resolution for 8 performing relationships and 13 nonperforming relationships. Current workout positions include $54.4 million in classified performing loans, $61.3 million in classified nonaccruals and $0.9 million in other real estate owned assets.
Read all updates
Q2-2026 Updates
Positive
Negative
Earnings per Share and Net Interest Income Growth
EPS increased to $0.58 for the quarter while net interest income grew over 4% quarter-over-quarter, marking the third straight quarter of net interest income expansion.
Read all positive updates
Company Guidance
Guidance from the call: management is targeting 5–7% loan growth for 2026 (Q2 loan growth >4%; portfolio YTD +5%), expects net interest margin to hold roughly steady around 3.53% with only single‑digit basis‑point movement through year‑end despite modest funding cost pressure, and plans to keep operating expenses at current levels through 2026; other key metrics called out include Q2 EPS $0.58, ROAA 0.85%, ROTCE 8.88%, tangible book $26.30 (shares trading at 94% of TBV), total assets ~ $2.2B, available liquidity >$810M covering 42% of deposits, loan mix 42% fixed / 58% floating (many repricing within two quarters), owner‑occupied CRE growth +$97M YoY, 88% of construction loans with bank‑held interest reserves, classified performing loans $54.4M, classified nonaccruals $61.3M, OREO $0.9M, lifetime net charge‑offs $12.6M, repurchased 207,000 shares last quarter at an average $24.09 with ~ $5M left in the current buyback, a pre/post‑stress CET1 ratio that remains well above the 7% well‑capitalized threshold, and an expectation of only modest, non‑material charge‑offs while working to resolve current nonperformers.MainStreet Bancshares Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
76
Positive
Cash Flow
79
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 130.82M | 135.89M | 137.87M | 127.76M | 88.68M | 70.31M |
| Gross Profit | 72.22M | 73.92M | 59.06M | 78.44M | 72.91M | 60.82M |
| EBITDA | 25.37M | 24.03M | -9.27M | 35.57M | 35.97M | 30.32M |
| Net Income | 17.34M | 15.61M | -9.98M | 26.59M | 26.67M | 22.17M |
Balance Sheet | ||||||
| Total Assets | 2.24B | 2.21B | 2.23B | 2.04B | 1.93B | 1.65B |
| Cash, Cash Equivalents and Short-Term Investments | 30.13M | 26.85M | 48.92M | 113.51M | 111.56M | 161.74M |
| Total Debt | 70.10M | 69.94M | 73.04M | 87.64M | 172.25M | 29.29M |
| Total Liabilities | 2.03B | 1.99B | 2.02B | 1.81B | 1.73B | 1.46B |
| Stockholders Equity | 214.44M | 218.59M | 207.99M | 221.52M | 198.28M | 188.79M |
Cash Flow | ||||||
| Free Cash Flow | 23.22M | 10.64M | 8.95M | 25.63M | 25.76M | 24.82M |
| Operating Cash Flow | 23.71M | 14.81M | 14.74M | 31.63M | 33.54M | 29.12M |
| Investing Cash Flow | -161.25M | -38.38M | -122.28M | -130.75M | -228.74M | -29.25M |
| Financing Cash Flow | 113.53M | -21.38M | 200.73M | 83.03M | 232.59M | -14.20M |
MainStreet Bancshares Risk Analysis
MainStreet Bancshares disclosed 45 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | $192.38M | 9.50 | 12.49% | 2.60% | 3.33% | 22.98% | |
81 Outperform | $205.56M | 11.46 | 13.40% | 2.04% | 10.84% | 40.36% | |
76 Outperform | $175.61M | 12.43 | 8.00% | 1.71% | -6.41% | ― | |
68 Neutral | $224.96M | 12.01 | 10.09% | 1.05% | -0.39% | 4.70% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $179.75M | 14.18 | 7.07% | ― | 3.34% | 48.71% | |
60 Neutral | $199.76M | 16.39 | 6.77% | 0.89% | 0.77% | 6.16% |
* Financial Sector Average
MNSB
MainStreet Bancshares
25.23
3.32
15.14%
CFBK
CF Bankshares
35.06
10.97
45.51%
CZWI
Citizens Community Bancorp
21.47
5.41
33.68%
FCAP
First Capital
63.37
22.80
56.18%
LARK
Landmark Bancorp
31.82
7.00
28.21%
BVFL
BV Financial, Inc.
21.55
4.81
28.73%
MainStreet Bancshares Corporate Events
Dividends
MainStreet Bancshares Declares Quarterly Series A Preferred Dividend
Positive
Aug 21, 2026
On August 21, 2026, MainStreet Bancshares, Inc.’s board declared a quarterly cash dividend on its 7.50% Series A Fixed-Rate Non-Cumulative Perpetual Preferred Stock, tied to 1,150,000 outstanding depositary shares issued in September 2020 wi...
Business Operations and StrategyDividendsFinancial Disclosures
MainStreet Bancshares Declares Performance-Based Cash Dividend
Positive
Jul 21, 2026
On July 21, 2026, MainStreet Bancshares, Inc. announced a $0.10 per share cash dividend to its common shareholders, with payment scheduled for August 11, 2026, to shareholders of record as of August 4, 2026. The company emphasized that any future ...
Business Operations and StrategyStock BuybackFinancial Disclosures
MainStreet Bancshares Reports Strong Second Quarter Results
Positive
Jul 20, 2026
MainStreet Bancshares, Inc., the financial holding company for technology-forward community lender MainStreet Bank, serves business and professional clients through seven branches in Northern Virginia and Washington, D.C., extensive ATM access, an...
Business Operations and StrategyFinancial Disclosures
MainStreet Bancshares Schedules Q2 2026 Earnings Webcast
Positive
Jul 6, 2026
On July 6, 2026, MainStreet Bancshares, Inc. announced plans to hold a virtual webcast and quarterly earnings conference call on Monday, July 20, 2026, at 2:00 p.m. Eastern Time. During this event, the company will review its second quarter 2026 r...
Business Operations and StrategyStock Buyback
MainStreet Bancshares Highlights Ongoing Second-Quarter Share Repurchases
Positive
May 26, 2026
On May 26, 2026, MainStreet Bancshares, Inc., the holding company for MainStreet Bank, reported that since the beginning of the second quarter it has repurchased 207,000 shares of its common stock at an average price of $24.09 per share under its ...
DividendsShareholder Meetings
MainStreet Bancshares Declares Quarterly Preferred Stock Dividend
Positive
May 22, 2026
At MainStreet Bancshares’ annual meeting of shareholders held on May 21, 2026, investors re-elected four directors to three-year terms, ratified the appointment of Yount, Hyde Barbour, P.C. as the independent auditor for fiscal 2026, and ap...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.