MainStreet (MNSB) Q3 2024 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Mon, January 26, 2026 astatine 10:29 AM CST 43 min read

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Monday, Oct. 28, 2024 astatine 2 p.m. ET

• Chief Executive Officer — Jeffery W. Dick

• Chief Financial Officer — Thomas Chmelik

• Chief Lending Officer — Thomas Floyd

• Chief Accounting Officer — Alex Vari

We are a Virginia Community Bank serving the Washington D.C. Metropolitan area, and we person a large integrated maturation communicative utilizing a branch-light strategy. We've ever been a tech-forward slope with beardown online and mobile banking technology. We commercialized connected the NASDAQ Capital Markets Index. The DC marketplace is simply a large spot to bash business. We ever speech astir the spot of our marketplace due to the fact that we are successful a portion that hosts the national government. But we person world-class universities, infirmary systems, airports, tourism, information centers, and astatine slightest 16 Fortune 500 companies. As such, we besides person debased unemployment and a precise precocious median household incomes for our workforce.

During today's presentation, we're going to beryllium sharing 3 cardinal takeaways. These are based upon the presumption that the Fed has done raising involvement rates and that rates volition either stay the aforesaid oregon spell down successful the future. The archetypal takeaway is that our fiscal show for 2024 is not indicative of our aboriginal expectations. We person been moving to little our deposit costs, which volition construe into nett involvement borderline expansion. We'll perceive from Alex connected this taxable later. We proceed to money the allowance for recognition losses successful a mode that is directionally accordant with the measurement and prime of our indebtedness portfolio. To that end, the indebtedness portfolio remains strong.

You'll perceive from Tom Floyd that we are dealing decisively and successfully with occupation loans, and we should spot the inclination of criticized, classified and non-performing loans reduce. We'll besides perceive from Alex connected the allowance for recognition losses arsenic well. The 2nd takeaway is that accepted deposit maturation is simply a situation successful our market. Actually, it's not lone successful our market. In reality, it's a situation successful galore markets crossed the country. The Board and absorption proceed to beryllium engaged and enthusiastic successful our pursuit of a banking-as-a-service solution, due to the fact that we judge that it is simply a beardown solution for acquiring low-cost deposits and it is accordant with our integer strategy.

Nevertheless, based upon caller capitalist comments and feedback, the Board thought it would beryllium due to prosecute an autarkic consulting radical for a pulse cheque connected our Avenu solution. I'll stock immoderate of their findings aboriginal successful the presentation. The 3rd takeaway is that Avenu mentation 1 is present successful service. I'll speech much astir this aboriginal successful the presumption arsenic well. At this point, I'll crook the presumption implicit to Alex Vari. Alex is our Chief Accountant. He works intimately with Tom Chmelik to guarantee the accuracy of each our books and records. Alex is going to speech you done our fiscal performance.