MainStreet Bancshares Q3 财报：NII 连增但 CRE 信贷骤裂，不良率飙至 4.71%、EPS 环比 -26%

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): Date:
October 26, 2026
MainStreet Bancshares, Inc.
(Exact name of Registrant as Specified in Its Charter)
Virginia
001-38817
81-2871064
(State or Other Jurisdiction
of Incorporation)
(Commission File Number)
(IRS Employer
Identification No.)
10089 Fairfax Boulevard
,
Fairfax
,
VA
22030
(Address of Principal Executive Offices)
(Zip Code)
(
703
)
481-4567
(Registrant
’
s Telephone Number, Including Area Code)
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):
☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading
Symbol(s)
Name of each exchange on which registered
Common Stock
MNSB
The
Nasdaq
Stock Market LLC
Depositary Shares (each representing a 1/40th interest in a share of 7.50% Series A Fixed-Rate Non-Cumulative Perpetual Preferred Stock
MNSBP
The
Nasdaq
Stock Market LLC
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company
☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On October 26, 2026, MainStreet Bancshares, Inc. (the “Company”) issued a press release setting forth the Company’s third quarter 2026 unaudited financial results. A copy of the Company’s press release is attached hereto as Exhibit 99.1, is hereby incorporated by reference, and will be posted on the Company's website.
Item 7.01 Regulation FD Disclosure
On October 26, 2026, the Company made available an investor presentation analyzing its third quarter financial results. A copy of the Company’s investor presentation is attached hereto as Exhibit 99.2, is hereby incorporated by reference, and will be posted on the Company’s website.
The information furnished under Items 2.02, 7.01 and 9.01 of this Current Report on Form 8-K, including the exhibits, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, and it shall not be deemed incorporated by reference in any filing under the Exchange Act, or the Securities Act of 1933, as amended, except as expressly set forth by specific reference in such filing to this Form 8-K.
Item 9.01 Financial Statements and Exhibits.
(d)
Exhibits
.
Exhibit
Number
Description
99.1
Press Release, dated October 26, 2026, with respect to the Company’s unaudited financial results for the third quarter ended September 30, 2026
99.2
Investor Presentation dated October 26, 2026
104
Cover Page Interactive Data File (embedded within the Inline XBRL document).
1
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
MAINSTREET BANCSHARES, INC
Date: October 26, 2026
By:
/s/ Richard A. Vari
Name:
Richard A. Vari
Title:
Chief Financial Officer
2

----- ex_990544.htm -----
EX-99.1
2
ex_990544.htm
EXHIBIT 99.1
ex_990544.htm
Exhibit 99.1
PRESS RELEASE
Contact: Billy Freesmeier
October 26, 2026 8:00 AM ET
Chief of Staff
(703) 481-4579
MainStreet Bancshares, Inc. Reports Third Quarter 2026 Results
Relationship banking drives growth in net interest income
Fairfax, VA., October 26, 2026
– MainStreet Bancshares, Inc. (Nasdaq: MNSB & MNSBP), the financial holding company for MainStreet Bank, reported net income of $3.6 million for the quarter-ended September 30, 2026, resulting in earnings per common share of $0.43. The net interest margin was 3.55% for the quarter, up two basis points from the previous quarter. Net interest income increased to $18.8 million for the quarter, marking the fourth consecutive quarterly increase.
During the quarter the Bank exercised targeted credit remediation by adding a $1.9 million provision for credit losses, an impact on earnings per common share of ($0.21). The Company and Bank remain well-capitalized with strong liquidity.
"No sector is entirely immune to broader economic realignments, and we are managing through commercial real estate adjustments with eyes wide open," said Jeff W. Dick, Chairman and CEO of MainStreet Bancshares, Inc. and MainStreet Bank.
Chris Johnston, Chief Credit Officer of MainStreet Bank added, "resolving credit challenges in a transitioning commercial real estate environment requires active engagement and patience. We are methodically working through nonperforming assets and prioritizing long-term portfolio quality over short-term expediency. Management continues to actively stress-test the credit portfolio, engage with borrowers, and enforce strong recourse structures."
"A stabilizing D.C. market reinforces the value of our core relationship banking model," added Abdul Hersiburane, President of MainStreet Bank. "As local economic conditions improve, we remain focused on deploying capital prudently, working with well-capitalized borrowers, supporting sound commercial developments, and converting market transition into long-term shareholder value."
About MainStreet Bank:
MainStreet operates seven branches in Herndon, Fairfax, McLean, Leesburg, Middleburg, Clarendon, and Washington, D.C. MainStreet Bank has over 55,000 free ATMs and a fully integrated online and mobile banking solution. The Bank is not restricted by a conventional branching system, as it can offer business customers the ability to
Put Our Bank in Your Office
®. With robust and easy-to-use online business banking technology, MainStreet has "put our bank" in thousands of businesses in the metropolitan area.
MainStreet Bank has a robust line of business and professional lending products, including government contracting lines of credit, commercial lines and term loans, residential and commercial construction, and commercial real estate. MainStreet also works with the SBA to offer 7A and 504 lending solutions. From sophisticated cash management to enhanced mobile banking and instant-issue Debit cards, MainStreet Bank is always looking for ways to improve our customers' experience.
MainStreet Bank was the first community bank in the Washington, D.C., metropolitan area to offer a full online business banking solution. MainStreet Bank was also the first bank headquartered in the Commonwealth of Virginia to offer CDARS – a solution that provides multi-million-dollar FDIC insurance. Further information on the Bank can be obtained by visiting its website at
mstreetbank.com
.
This release contains forward-looking statements, including our expectations with respect to future events that are subject to various risks and uncertainties. The statements contained in this release that are not historical facts are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Words such as
“
may,
” “
will,
” “
could,
” “
should,
” “
expect,
” “
plan,
” “
project,
” “
intend,
” “
anticipate,
” “
believe,
” “
estimate,
” “
predict,
” “
potential,
” “
pursuant,
” “
target,
” “
continue,
”
and similar expressions are intended to identify such forward-looking statements. Factors that could cause actual results to differ materially from management's projections, forecasts, estimates and expectations include: fluctuation in market rates of interest and loan and deposit pricing, adverse changes in the overall national economy as well as adverse economic conditions in our specific market areas, future impacts of pandemic outbreaks, maintenance and development of well-established and valued client relationships and referral source relationships, and acquisition or loss of key production personnel. We caution readers that the list of factors above is not exclusive. The forward-looking statements are made as of the date of this release, and we may not undertake steps to update the forward-looking statements to reflect the impact of any circumstances or events that arise after the date the forward-looking statements are made. In addition, our past results of operations are not necessarily indicative of future performance.
UNAUDITED CONSOLIDATED BALANCE SHEET INFORMATION
(In thousands)
September 30, 2026
June 30, 2026
March 31, 2026
December 31, 2025*
September 30, 2025
ASSETS
Cash and due from banks
$
28,203
$
30,125
$
33,044
$
25,179
$
23,940
Interest-bearing deposits at other financial institutions
688
751
783
1,276
1,315
Federal funds sold
69,510
78,405
134,288
136,301
102,039
Total cash and cash equivalents
98,401
109,281
168,115
162,756
127,294
Investment securities available for sale (AFS), at fair value
53,066
57,114
57,021
57,954
58,338
Investment securities held to maturity (HTM), at amortized cost, net of allowance for credit losses of $0 for all periods
13,303
13,785
13,790
13,798
14,293
Restricted securities, at amortized cost
6,998
6,998
6,998
7,005
7,005
Loans, net of allowance for credit losses of $19,946, $19,306, $19,049, $19,308, and $18,831, respectively
1,931,107
1,928,372
1,850,961
1,841,833
1,788,243
Premises and equipment, net
13,002
13,192
13,430
13,608
13,212
Other real estate owned, net
1,799
900
1,094
1,697
—
Property held for sale, at fair value
2,763
2,760
2,745
2,728
3,225
Accrued interest and other receivables
17,255
14,575
13,453
14,518
13,622
Bank owned life insurance
41,726
41,396
41,071
40,752
40,433
Other assets
55,440
54,712
54,615
56,020
59,124
Total Assets
$
2,234,860
$
2,243,085
$
2,223,293
$
2,212,669
$
2,124,789
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Non-interest bearing deposits
$
343,769
$
363,883
$
359,113
$
378,694
$
324,717
Interest-bearing demand deposits
101,584
114,087
120,700
119,407
123,231
Savings and NOW deposits
146,990
144,783
138,667
121,905
125,214
Money market deposits
542,766
542,687
545,804
499,334
458,946
Time deposits
788,891
768,865
750,441
779,844
778,727
Total deposits
1,924,000
1,934,305
1,914,725
1,899,184
1,810,835
Subordinated debt, net
70,156
70,100
70,035
69,936
69,837
Other liabilities
25,832
24,244
23,549
24,958
25,754
Total Liabilities
2,019,988
2,028,649
2,008,309
1,994,078
1,906,426
Stockholders’ Equity:
Preferred stock
27,263
27,263
27,263
27,263
27,263
Common stock
27,446
27,431
28,247
29,008
29,833
Capital surplus
58,143
57,484
61,045
66,531
68,895
Retained earnings
110,129
107,777
104,360
101,557
98,793
Accumulated other comprehensive loss
(8,109
)
(5,519
)
(5,931
)
(5,768
)
(6,421
)
Total Stockholders’ Equity
214,872
214,436
214,984
218,591
218,363
Total Liabilities and Stockholders’ Equity
$
2,234,860
$
2,243,085
$
2,223,293
$
2,212,669
$
2,124,789
*Derived from audited financial statements
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME INFORMATION
(In thousands, except share and per share data)
Year-to-Date
Three Months Ended
September 30, 2026
September 30, 2025
September 30, 2026
June 30, 2026
March 31, 2026
December 31, 2025
September 30, 2025
INTEREST INCOME:
Interest and fees on loans
$
92,103
$
94,242
$
31,847
$
30,738
$
29,518
$
29,969
$
30,688
Interest on investment securities
Taxable securities
1,281
1,285
440
423
418
421
435
Tax-exempt securities
866
800
290
289
287
276
270
Interest on interest-bearing deposits at other financial institutions
31
44
11
10
10
10
11
Interest on federal funds sold
2,232
3,342
617
630
985
1,198
1,060
Total interest income
96,513
99,713
33,205
32,090
31,218
31,874
32,464
INTEREST EXPENSE:
Interest on interest-bearing demand deposits
2,575
3,123
823
862
890
1,064
1,071
Interest on savings and NOW deposits
1,263
1,079
453
421
389
390
467
Interest on money market deposits
13,089
14,606
4,611
4,487
3,991
4,246
4,623
Interest on time deposits
22,306
25,994
7,498
7,158
7,650
8,244
8,369
Interest on federal funds purchased
198
93
89
84
25
—
28
Interest on subordinated debt
2,580
2,415
955
846
779
788
804
Total interest expense
42,011
47,310
14,429
13,858
13,724
14,732
15,362
Net interest income
54,502
52,403
18,776
18,232
17,494
17,142
17,102
Provision for credit losses
2,383
(398
)
1,929
585
(131
)
328
144
Net interest income after provision for credit losses
52,119
52,801
16,847
17,647
17,625
16,814
16,958
NON-INTEREST INCOME:
Deposit account service charges
1,667
1,625
542
552
573
559
557
Bank owned life insurance income
974
926
330
325
319
319
316
Gain on retirement of subordinated debt
—
273
—
—
—
—
145
Gain on equity securities
—
103
—
—
—
—
—
Loss on sale of other real estate owned
(1,007
)
—
(322
)
—
(685
)
—
—
Other non-interest income
338
199
121
17
200
22
104
Total non-interest income
1,972
3,126
671
894
407
900
1,122
NON-INTEREST EXPENSES:
Salaries and employee benefits
22,692
24,030
7,636
7,505
7,551
7,557
7,366
Furniture and equipment expenses
2,202
2,957
676
768
758
884
799
Advertising and marketing
1,043
1,582
368
379
296
469
571
Occupancy expenses
941
1,114
324
252
365
293
400
Outside services
1,323
3,088
418
445
460
688
625
Administrative expenses
658
757
210
207
241
238
259
Other real estate owned expenses
432
—
188
24
220
—
—
Other operating expenses
8,776
8,198
3,057
2,936
2,783
2,696
2,647
Total non-interest expenses
38,067
41,726
12,877
12,516
12,674
12,825
12,667
Income before income tax expense
16,024
14,201
4,641
6,025
5,358
4,889
5,413
Income tax expense
3,653
2,641
1,038
1,357
1,258
836
896
Net income
12,371
11,560
3,603
4,668
4,100
4,053
4,517
Preferred stock dividends
1,617
1,617
539
539
539
539
539
Net income available to common shareholders
$
10,754
$
9,943
$
3,064
$
4,129
$
3,561
$
3,514
$
3,978
Earnings per common share, basic and diluted
$
1.48
$
1.29
$
0.43
$
0.58
$
0.48
$
0.46
$
0.52
Weighted average number of common shares, basic and diluted
7,258,990
7,682,086
7,119,406
7,177,264
7,484,310
7,564,723
7,704,639
UNAUDITED LOAN, DEPOSIT AND BORROWING DETAIL
(In thousands)
September 30, 2026
June 30, 2026
September 30, 2025
Percentage Change
$ Amount
% of Total
$ Amount
% of Total
$ Amount
% of Total
Last 3 Mos
Last 12 Mos
LOANS:
Construction and land development loans
$
310,375
15.9
%
$
312,885
16.0
%
$
312,318
17.2
%
-0.8
%
-0.6
%
Residential real estate loans
475,834
24.3
%
465,373
23.8
%
411,592
22.7
%
2.2
%
15.6
%
Commercial real estate loans
1,074,384
55.0
%
1,071,008
54.9
%
981,091
54.2
%
0.3
%
9.5
%
Commercial and industrial loans
93,841
4.8
%
101,433
5.2
%
105,217
5.8
%
-7.5
%
-10.8
%
Consumer loans
689
0.0
%
1,278
0.1
%
1,204
0.1
%
-46.1
%
-42.8
%
Total Gross Loans
$
1,955,123
100.0
%
$
1,951,977
100.0
%
$
1,811,422
100.0
%
0.2
%
7.9
%
Less: Allowance for credit losses
(19,946
)
(19,306
)
(18,831
)
Net deferred loan fees
(4,070
)
(4,299
)
(4,348
)
Net Loans
$
1,931,107
$
1,928,372
$
1,788,243
DEPOSITS:
Non-interest bearing deposits
$
343,769
17.9
%
$
363,883
18.8
%
$
324,717
17.9
%
-5.5
%
5.9
%
Interest-bearing deposits:
Demand deposits
101,584
5.3
%
114,087
5.9
%
123,231
6.8
%
-11.0
%
-17.6
%
Savings and NOW deposits
146,990
7.6
%
144,783
7.5
%
125,214
6.9
%
1.5
%
17.4
%
Money market deposits
542,766
28.2
%
542,687
28.1
%
458,946
25.3
%
0.0
%
18.3
%
Time deposit $250,000 or more
518,591
27.0
%
512,878
26.5
%
501,332
27.7
%
1.1
%
3.4
%
Time deposit less than $250,000
270,300
14.0
%
255,987
13.2
%
277,395
15.3
%
5.6
%
-2.6
%
Total Deposits
$
1,924,000
100.0
%
$
1,934,305
100.0
%
$
1,810,835
100.0
%
-0.5
%
6.2
%
BORROWINGS:
Subordinated debt, net
$
70,156
100.0
%
$
70,100
100.0
%
$
69,837
100.0
%
0.1
%
0.5
%
Total Borrowings
$
70,156
100.0
%
$
70,100
100.0
%
$
69,837
100.0
%
0.1
%
0.5
%
Total Deposits and Borrowings
$
1,994,156
$
2,004,405
$
1,880,672
-0.5
%
6.0
%
Core customer funding sources
(1)
$
1,574,793
79.0
%
$
1,391,834
69.4
%
$
1,289,952
68.6
%
13.1
%
22.1
%
Brokered and listing service sources
(2)
349,207
17.5
%
542,471
27.1
%
520,883
27.7
%
-35.6
%
-33.0
%
Subordinated debt, net
(3)
70,156
3.5
%
70,100
3.5
%
69,837
3.7
%
0.1
%
0.5
%
Total Funding Sources
$
1,994,156
100.0
%
$
2,004,405
100.0
%
$
1,880,672
100.0
%
-0.5
%
6.0
%
(1)
Includes ICS, CDARS, custodial, and reciprocal deposits maintained by customers, which represent sweep accounts tied to customer operating accounts.
(2)
Consists of certificates of deposit (CD) through multiple listing services and multiple brokered deposit services, as well as ICS and CDARS one-way certificates of deposit.
(3)
Subordinated debt obligation qualifies as Tier 2 capital at the holding company and Tier 1 capital at the Bank.
UNAUDITED AVERAGE BALANCE SHEETS, INTEREST AND RATES
(In thousands)
For the three months ended September 30, 2026
For the three months ended September 30, 2025
Average Balance
Interest Income/ Expense
(3)(4)
Average Yields/ Rate (annualized)
(3)(4)
Average Balance
Interest Income/ Expense
(3)(4)
Average Yields/ Rate (annualized)
(3)(4)
ASSETS:
Interest-earning assets:
Loans
(1)(2)
$
1,950,625
$
31,847
6.48
%
$
1,805,016
$
30,688
6.75
%
Securities:
Taxable
48,879
440
3.57
%
52,680
435
3.28
%
Tax-exempt
35,777
367
4.07
%
35,260
342
3.85
%
Interest-bearing deposits at other financial institutions
1,195
11
3.65
%
1,037
11
4.21
%
Federal funds sold
69,978
617
3.50
%
99,896
1,060
4.21
%
Total interest-earning assets
$
2,106,454
$
33,282
6.27
%
$
1,993,889
$
32,536
6.47
%
Other assets
135,102
125,605
Total assets
$
2,241,556
$
2,119,494
Liabilities and Stockholders’ Equity:
Interest-bearing liabilities:
Interest-bearing demand deposits
$
112,106
$
823
2.91
%
$
120,112
$
1,071
3.54
%
Savings and NOW deposits
145,304
453
1.24
%
119,467
467
1.55
%
Money market deposits
547,680
4,611
3.34
%
463,948
4,623
3.95
%
Time deposits
769,958
7,498
3.86
%
772,176
8,369
4.30
%
Total interest-bearing deposits
$
1,575,048
$
13,385
3.37
%
$
1,475,703
$
14,530
3.91
%
Federal funds purchased
8,641
89
4.09
%
2,338
28
4.75
%
Subordinated debt, net
70,137
955
5.40
%
70,793
804
4.51
%
Total interest-bearing liabilities
$
1,653,826
$
14,429
3.46
%
$
1,548,834
$
15,362
3.94
%
Demand deposits and other liabilities
371,115
355,621
Total liabilities
$
2,024,941
$
1,904,455
Stockholders’ Equity
216,615
215,039
Total Liabilities and Stockholders’ Equity
$
2,241,556
$
2,119,494
Interest Rate Spread
2.81
%
2.53
%
Net Interest Income
$
18,853
$
17,174
Net Interest Margin
3.55
%
3.42
%
(1)
Includes loans classified as non-accrual
(2)
Total loan interest income includes amortization of deferred loan fees, net of deferred loan costs
(3)
Income and yields for all periods presented are reported on a tax-equivalent basis using the federal statutory rate of 21%
(4)
Refer to "Unaudited Reconciliation of Certain Non-GAAP Financial Measures" for reconciliation of non-GAAP measures
UNAUDITED AVERAGE BALANCE SHEETS, INTEREST AND RATES
(In thousands)
For the nine months ended September 30, 2026
For the nine months ended September 30, 2025
Average Balance
Interest Income/ Expense
(3)(4)
Average Yields/ Rate (annualized)
(3)(4)
Average Balance
Interest Income/ Expense
(3)(4)
Average Yields/ Rate (annualized)
(3)(4)
ASSETS:
Interest-earning assets:
Loans
(1)(2)
$
1,911,558
$
92,103
6.44
%
$
1,820,771
$
94,242
6.92
%
Securities:
Taxable
49,277
1,281
3.48
%
52,926
1,285
3.25
%
Tax-exempt
36,020
1,096
4.07
%
35,298
1,013
3.84
%
Interest-bearing deposits at other financial institutions
1,151
31
3.60
%
1,274
44
4.62
%
Federal funds sold
81,694
2,232
3.65
%
105,674
3,342
4.23
%
Total interest-earning assets
$
2,079,700
$
96,743
6.22
%
$
2,015,943
$
99,926
6.63
%
Other assets
130,059
119,819
Total assets
$
2,209,759
$
2,135,762
Liabilities and Stockholders’ Equity:
Interest-bearing liabilities:
Interest-bearing demand deposits
$
115,246
$
2,575
2.99
%
$
113,969
$
3,123
3.66
%
Savings and NOW deposits
140,508
1,263
1.20
%
102,349
1,079
1.41
%
Money market deposit
526,294
13,089
3.33
%
493,366
14,606
3.96
%
Time deposits
761,752
22,306
3.92
%
785,685
25,994
4.42
%
Total interest-bearing deposits
$
1,543,800
$
39,233
3.40
%
$
1,495,369
$
44,802
4.01
%
Federal funds purchased
6,612
198
4.00
%
2,638
93
4.71
%
Subordinated debt, net
70,073
2,580
4.92
%
71,670
2,415
4.51
%
Total interest-bearing liabilities
$
1,620,485
$
42,011
3.47
%
$
1,569,677
$
47,310
4.03
%
Demand deposits and other liabilities
373,183
354,635
Total liabilities
$
1,993,668
$
1,924,312
Stockholders’ Equity
216,091
211,450
Total Liabilities and Stockholders’ Equity
$
2,209,759
$
2,135,762
Interest Rate Spread
2.75
%
2.60
%
Net Interest Income
$
54,732
$
52,616
Net Interest Margin
3.52
%
3.49
%
(1)
Includes loans classified as non-accrual
(2)
Total loan interest income includes amortization of deferred loan fees, net of deferred loan costs
(3)
Income and yields for all periods presented are reported on a tax-equivalent basis using the federal statutory rate of 21%
(4)
Refer to "Unaudited Reconciliation of Certain Non-GAAP Financial Measures" for reconciliation of non-GAAP measures
UNAUDITED SUMMARY FINANCIAL DATA
(Dollars in thousands except per share data)
At or For the Three Months Ended
At or For the Nine Months Ended
September 30, 2026
September 30, 2025
September 30, 2026
September 30, 2025
Per share Data and Shares Outstanding
Earnings per common share (basic and diluted)
$
0.43
$
0.52
$
1.48
$
1.29
Book value per common share
$
26.36
$
24.81
$
26.36
$
24.81
Weighted average common shares (basic and diluted)
7,119,406
7,704,639
7,258,990
7,682,086
Common shares outstanding at end of period
7,115,994
7,703,579
7,115,994
7,703,579
Performance Ratios
Return on average assets (annualized)
0.64
%
0.85
%
0.75
%
0.72
%
Return on average equity (annualized)
6.60
%
8.33
%
7.65
%
7.31
%
Return on average common equity (annualized)
6.42
%
8.40
%
7.61
%
7.22
%
Yield on earning assets (FTE)
(2)
(annualized)
6.27
%
6.47
%
6.22
%
6.63
%
Cost of interest-bearing liabilities (annualized)
3.46
%
3.94
%
3.47
%
4.03
%
Net interest spread (FTE)
(2)
(annualized)
2.81
%
2.53
%
2.75
%
2.60
%
Net interest margin (FTE)
(2)
(annualized)
3.55
%
3.42
%
3.52
%
3.49
%
Non-interest income as a percentage of average assets (annualized)
0.12
%
0.21
%
0.12
%
0.20
%
Non-interest expense to average assets (annualized)
2.28
%
2.37
%
2.30
%
2.61
%
Efficiency ratio
(3)
66.22
%
69.51
%
67.41
%
75.14
%
Allowance for Credit Losses
Allowance for credit losses (ACL)
Beginning balance, ACL - loans
$
19,306
$
19,057
$
19,308
$
19,450
Add: recoveries
140
75
176
831
Less: charge-offs
(1,823
)
(235
)
(2,104
)
(857
)
Add: provision for credit losses - loans
2,323
(66
)
2,566
(593
)
Ending balance, ACL - loans
$
19,946
$
18,831
$
19,946
$
18,831
Beginning balance, reserve for unfunded commitment (RUC)
$
546
$
272
$
335
$
287
Provision for unfunded commitments, net
(394
)
210
(183
)
195
Ending balance, RUC
$
152
$
482
$
152
$
482
Total allowance for credit losses
$
20,098
$
19,313
$
20,098
$
19,313
Allowance for credit losses on loans to total gross loans
1.02
%
1.04
%
1.02
%
1.04
%
Allowance for credit losses on loans to non-performing loans
21.68
%
80.52
%
21.68
%
80.52
%
Net charge-offs to average gross loans (annualized)
0.34
%
0.04
%
0.13
%
0.00
%
Concentration Ratios
Commercial real estate loans to total capital
(4)
374.44
%
356.02
%
374.44
%
356.02
%
Construction loans to total capital
(5)
102.02
%
102.61
%
102.02
%
102.61
%
Past due and Non-performing Assets
Loans 30-89 days past due and accruing to total gross loans
3.20
%
1.40
%
3.20
%
1.40
%
Loans 90 days past due and accruing to total gross loans
0.00
%
0.00
%
0.00
%
0.00
%
Non-accrual loans to total gross loans
4.71
%
1.29
%
4.71
%
1.29
%
Other real estate owned, net
$
1,799
$
—
$
1,799
$
—
Non-performing loans
$
91,996
$
23,386
$
91,996
$
23,386
Non-performing assets to total assets
4.20
%
1.10
%
4.20
%
1.10
%
Regulatory Capital Ratios (Bank only)
(1)
Total risk-based capital ratio
15.21
%
16.18
%
15.21
%
16.18
%
Tier 1 risk-based capital ratio
14.21
%
15.16
%
14.21
%
15.16
%
Leverage ratio
12.66
%
13.42
%
12.66
%
13.42
%
Common equity tier 1 ratio
14.21
%
15.16
%
14.21
%
15.16
%
Other information
Common shares closing stock price
$
24.74
$
20.83
$
24.74
$
20.83
Total equity / total assets
9.61
%
10.28
%
9.61
%
10.28
%
Average equity / average assets
9.66
%
10.15
%
9.78
%
9.90
%
Number of full time equivalent employees
164
174
164
174
Number of full service branch offices
7
6
7
6
(1)
Regulatory capital ratios as of September 30, 2026 are preliminary
(2)
Refer to "Unaudited Reconciliation of Certain Non-GAAP Financial Measures" for reconciliation of non-GAAP measures
(3)
Efficiency ratio is calculated as non-interest expense as a percentage of net interest income and non-interest income
(4)
Commercial real estate includes only non-owner occupied, multifamily, and construction loans as a percentage of Bank capital
(5)
Construction loans as a percentage of Bank capital
In addition to financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), the Company uses certain non-GAAP financial measures that provide useful information for financial and operational decision making, evaluating trends, and comparing financial results to other financial institutions. Non-GAAP financial measures are supplemental and not a substitute for, or more important than, financial measures prepared in accordance with GAAP and may not be comparable to those reported by other financial institutions. The non-GAAP financial measures presented in this document include the net interest margin, the yield on earning assets, and the net interest spread. The following tables present calculations underlying non-GAAP financial measures for the three and nine month periods indicated.
Unaudited Reconciliation of Certain Non-GAAP Financial Measures
(Dollars In thousands)
For the three months ended September 30,
For the nine months ended September 30,
2026
2025
2026
2025
Net interest margin (FTE)
Net interest income (GAAP)
$
18,776
$
17,102
$
54,502
$
52,403
FTE adjustment on tax-exempt securities
77
72
230
213
Net interest income (FTE) (non-GAAP)
18,853
17,174
54,732
52,616
Average interest-earning assets
2,106,454
1,993,889
2,079,700
2,015,943
Net interest margin (GAAP)
3.54
%
3.40
%
3.50
%
3.48
%
Net interest margin (FTE) (non-GAAP)
3.55
%
3.42
%
3.52
%
3.49
%
For the three months ended September 30,
For the nine months ended September 30,
2026
2025
2026
2025
Yield on earning assets (FTE)
Total interest income (GAAP)
$
33,205
$
32,464
$
96,513
$
99,713
FTE adjustment on tax-exempt securities
77
72
230
213
Total interest income (FTE) (non-GAAP)
33,282
32,536
96,743
99,926
Average interest-earning assets
2,106,454
1,993,889
2,079,700
2,015,943
Yield on earning assets (GAAP)
6.25
%
6.46
%
6.20
%
6.61
%
Yield on earning assets (FTE) (non-GAAP)
6.27
%
6.47
%
6.22
%
6.63
%
For the three months ended September 30,
For the nine months ended September 30,
2026
2025
2026
2025
Net interest spread (FTE)
Yield on earning assets (GAAP)
6.25
%
6.46
%
6.20
%
6.61
%
Yield on earning assets (FTE) (non-GAAP)
6.27
%
6.47
%
6.22
%
6.63
%
Yield on interest-bearing liabilities (GAAP)
3.46
%
3.94
%
3.47
%
4.03
%
Net interest spread (GAAP)
2.79
%
2.52
%
2.73
%
2.58
%
Net interest spread (FTE) (non-GAAP)
2.81
%
2.53
%
2.75
%
2.60
%

----- ex_990545.htm -----
EX-99.2
3
ex_990545.htm
EXHIBIT 99.2
Image Exhibit
Exhibit 99.2