MainStreet Bancshares, Inc. Debt Disclosure
Note 10. Borrowed Funds
The Bank has unsecured borrowing lines with various institutions. The Bank also has a credit availability agreement with the FHLB based on a percentage of total assets. This credit availability agreement provides the Bank with access to a myriad of advance products offered by the FHLB. The rate of interest charged is based on market conditions. At December 31, 2024, there were commercial real estate, residential 1-4 and multi-family loans totaling $1.6 billion used to collateralize FHLB advances.
| (Dollars in thousands) | Outstanding Borrowings | Average balance | Weighted average interest rate paid during the year | Weighted average interest rate paid at December 31 | Credit Availability | |||||||||||||||
| December 31, 2024 | ||||||||||||||||||||
| Federal funds purchased | $ | — | $ | 9,941 | 5.78 | % | 0.00 | % | $ | 144,000 | ||||||||||
| Federal Home Loan Bank advances | — | 820 | 5.61 | % | 0.00 | % | 544,648 | |||||||||||||
| Total | $ | — | $ | 10,761 | 5.77 | % | 0.00 | % | $ | 688,648 | ||||||||||
| December 31, 2023 | ||||||||||||||||||||
| Federal funds purchased | $ | 15,000 | $ | 5,583 | 5.36 | % | 5.65 | % | $ | 114,000 | ||||||||||
| Federal Home Loan Bank advances | — | 24,959 | 4.90 | % | 0.00 | % | 504,640 | |||||||||||||
| Total | $ | 15,000 | $ | 30,542 | 4.99 | % | 5.65 | % | $ | 618,640 | ||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2024 | Mar 14, 2025 | Showing above |
| 2023 | Mar 20, 2024 | |
| 2022 | Mar 23, 2023 | |
| 2021 | Mar 23, 2022 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.