MainStreet Bancshares, Inc. Segments Disclosure
Note 26. Segment Information
Accounting policies for segments are the same as those described in Note 1. Indirect expenses are allocated on revenue. Transactions among segments are made at fair value. Information reported internally for performance assessment by the chief operating decision maker is as follows, inclusive of reconciliations of significant segment totals to the financial statements:
| For the Year ended December 31, 2025 | ||||||||||||
| Dollars in thousands | Core Banking | Financial Technology | Consolidated | |||||||||
| Interest income - loans, including fees - (1) | $ | 123,496 | $ | 715 | $ | 124,211 | ||||||
| Interest income - investments, other | 7,377 | — | 7,377 | |||||||||
| Service charge income | 1,563 | 621 | 2,184 | |||||||||
| Other fee income | 1,843 | — | 1,843 | |||||||||
| Total consolidated income | $ | 134,279 | $ | 1,336 | $ | 135,615 | ||||||
| Less: | ||||||||||||
| Interest expense - deposits | 58,661 | 86 | 58,747 | |||||||||
| Interest expense - subordinated debt, other | 3,296 | — | 3,296 | |||||||||
| Total consolidated interest expense | 61,957 | 86 | 62,043 | |||||||||
| Segment gross profit | $ | 72,322 | $ | 1,250 | $ | 73,572 | ||||||
| Less: | ||||||||||||
| Provision for credit losses | (70 | ) | — | (70 | ) | |||||||
| Salaries and employee benefits | 29,020 | 2,567 | 31,587 | |||||||||
| Furniture and equipment expenses | 2,755 | 1,085 | 3,840 | |||||||||
| Advertising and marketing | 1,720 | 331 | 2,051 | |||||||||
| Outside services | 1,559 | 2,217 | 3,776 | |||||||||
| Other operating expenses | 12,913 | 384 | 13,297 | |||||||||
| Total non-interest expense | 47,897 | 6,584 | 54,481 | |||||||||
| Segment profit (loss) | $ | 24,425 | $ | (5,334 | ) | $ | 19,091 | |||||
| Other segment disclosures | ||||||||||||
| Interest income | 130,873 | 715 | 131,588 | |||||||||
| Interest expense | 61,957 | 86 | 62,043 | |||||||||
| Depreciation | 1,125 | 20 | 1,145 | |||||||||
| Amortization | 3,782 | — | 3,782 | |||||||||
| Other significant noncash items: | ||||||||||||
| Provision for credit losses | (70 | ) | — | (70 | ) | |||||||
| Segment assets | 2,212,656 | 13 | 2,212,669 | |||||||||
| Expenditures for segment assets | 52,599 | — | 52,599 | |||||||||
Other operating expenses for the core banking segment are occupancy expenses, franchise taxes, FDIC insurance, data processing expenses, administrative expenses and other operating expenses, which can all be seen on the Consolidated Statements of Income. Additionally, board expenses, shareholder expenses, settlement costs, workout expenses, and fees for brokered deposits, makeup the other operating expense line item on the Consolidated Statements of Income. Other operating expenses for the financial technology segment were administrative expenses and armored car services.
The core banking segment reported segment profit before income taxes of $24.4 million for the year ended December 31, 2025, compared to segment profit of $9.5 million for the year ended December 31, 2024. The increase in core banking segment profit was primarily related to:
| • | Less interest expense on deposit accounts related to interest rate decreases in the year ended December 31, 2025. |
| • | Less provision for credit losses on loans recorded in the year ended December 31, 2025 compared to the year ended December 31, 2024, due to lower charge offs in 2025 compared to 2024. |
The financial technology segment reported segment loss before income taxes of $5.3 million for the year ended December 31, 2025, compared to segment loss of $23.4 million for the year ended December 31, 2024. The decrease in financial technology segment loss was primarily related to:
| • | No computer software intangible asset impairment recorded in the year ended December 31, 2025 compared to the year ended December 31, 2024. |
| For the Year ended December 31, 2024 | ||||||||||||
| Dollars in thousands | Core Banking | Financial Technology | Consolidated | |||||||||
| Interest income - loans, including fees - (1) | $ | 123,609 | $ | 1,568 | $ | 125,177 | ||||||
| Interest income - investments, other | 9,438 | — | 9,438 | |||||||||
| Service charge income | 1,298 | 698 | 1,996 | |||||||||
| Other fee income | 1,256 | — | 1,256 | |||||||||
| Total consolidated income | $ | 135,601 | $ | 2,266 | $ | 137,867 | ||||||
| Less: | ||||||||||||
| Interest expense - deposits | 68,062 | 103 | 68,165 | |||||||||
| Interest expense - subordinated debt, other | 3,876 | — | 3,876 | |||||||||
| Total consolidated interest expense | 71,938 | 103 | 72,041 | |||||||||
| Segment gross profit | $ | 63,663 | $ | 2,163 | $ | 65,826 | ||||||
| Less: | ||||||||||||
| Provision for credit losses | 6,763 | — | 6,763 | |||||||||
| Salaries and employee benefits | 28,207 | 2,268 | 30,475 | |||||||||
| Furniture and equipment expenses | 2,944 | 692 | 3,636 | |||||||||
| Advertising and marketing | 2,058 | 141 | 2,199 | |||||||||
| Outside Services | 1,753 | 1,874 | 3,627 | |||||||||
| Computer software intangible impairment | — | 19,721 | 19,721 | |||||||||
| Other operating expenses | 12,473 | 836 | 13,309 | |||||||||
| Total non-interest expense | 54,198 | 25,532 | 79,730 | |||||||||
| Segment profit (loss) | $ | 9,465 | $ | (23,369 | ) | $ | (13,904 | ) | ||||
| Other segment disclosures | ||||||||||||
| Interest income | 133,047 | 1,568 | 134,615 | |||||||||
| Interest expense | 71,938 | 103 | 72,041 | |||||||||
| Depreciation | 1,450 | 20 | 1,470 | |||||||||
| Amortization | 2,717 | 447 | 3,164 | |||||||||
| Other significant noncash items: | ||||||||||||
| Provision for credit losses | 6,763 | — | 6,763 | |||||||||
| Computer software intangible impairment | — | 19,721 | 19,721 | |||||||||
| Segment assets | 2,228,036 | 62 | 2,228,098 | |||||||||
| Expenditures for segment assets | 158,263 | 4,880 | 163,143 | |||||||||
Other operating expenses for the core banking segment are occupancy expenses, franchise taxes, FDIC insurance, data processing expenses, administrative expenses and other operating expenses, which can all be seen on the Consolidated Statements of Income. Additionally, board expenses, shareholder expenses, settlement costs, workout expenses, and fees for brokered deposits, makeup the other operating expense line item on the Consolidated Statements of Income. Other operating expenses for the financial technology segment are administrative expenses and armored car services.
The core banking segment reported segment profit before income taxes of $9.5 million for the year ended December 31, 2024, compared to $32.9 million for the year ended December 31, 2023. The decrease in core banking segment profit was primarily related to:
| • | higher interest expense due primarily to higher rates on deposits and higher balances of interest-bearing deposits, specifically money market and time deposits; |
| • | higher provision for credit losses due primarily to loan growth, charge offs taken in 2024, as well as increasing qualitative factors within our model assumptions for increased levels of past dues and potential weaknesses in underlying collateral for certain asset classes; |
| • | higher other operating expenses due primarily to increases in meals and entertainment, board and shareholder expenses, settlement and workout costs, DDA losses, and brokered deposits fees. |
The financial technology segment reported segment loss before income taxes of $23.4 million for the year ended December 31, 2024, compared to segment loss of $0.1 million for the year ended December 31, 2023. The increase in financial technology segment loss was primarily related to:
| • | impairment of the computer software intangible asset. The impairment charge of $19.7 million reduced fully the carrying value of the Company's intangible asset of $19.1 million and the related prepaid asset of $621,000, consisting of the enhanced value of cloud development expenses; |
| • | higher salaries and employee benefits as well as outside services, primarily due to the development of the Avenu SaaS software program; |
| • | lower transfer pricing income for 2024 due primarily to lower deposit balances in the financial technology segment in 2024 compared to 2023. |
| For the Year ended December 31, 2023 | ||||||||||||
| Dollars in thousands | Core Banking | Financial Technology | Consolidated | |||||||||
| Interest income - loans, including fees - (1) | $ | 114,120 | $ | 2,362 | $ | 116,482 | ||||||
| Interest income - investments, other | 7,939 | — | 7,939 | |||||||||
| Service charge income | 1,281 | 868 | 2,149 | |||||||||
| Other fee income | 1,191 | — | 1,191 | |||||||||
| Total consolidated income | $ | 124,531 | $ | 3,230 | $ | 127,761 | ||||||
| Less: | ||||||||||||
| Interest expense - deposits | 42,850 | 18 | 42,868 | |||||||||
| Interest expense - subordinated debt, other | 4,811 | — | 4,811 | |||||||||
| Total consolidated interest expense | 47,661 | 18 | 47,679 | |||||||||
| Segment gross profit | $ | 76,870 | $ | 3,212 | $ | 80,082 | ||||||
| Less: | ||||||||||||
| Provision for loan losses | 1,642 | — | 1,642 | |||||||||
| Salaries and employee benefits | 26,688 | 1,579 | 28,267 | |||||||||
| Furniture and equipment expenses | 2,431 | 356 | 2,787 | |||||||||
| Advertising and marketing | 2,208 | 135 | 2,343 | |||||||||
| Outside services | 1,206 | 838 | 2,044 | |||||||||
| Other operating expenses | 9,800 | 375 | 10,175 | |||||||||
| Total non-interest expense | 43,975 | 3,283 | 47,258 | |||||||||
| Segment profit (loss) | $ | 32,895 | $ | (71 | ) | $ | 32,824 | |||||
| Other segment disclosures | ||||||||||||
| Interest income | 122,059 | 2,362 | 124,421 | |||||||||
| Interest expense | 47,661 | 18 | 47,679 | |||||||||
| Depreciation | 1,242 | 20 | 1,262 | |||||||||
| Amortization | 1,483 | — | 1,483 | |||||||||
| Other significant noncash items: | ||||||||||||
| Provision for loan losses | 1,642 | — | 1,642 | |||||||||
| Segment assets | 2,020,693 | 14,739 | 2,035,432 | |||||||||
| Expenditures for segment assets | 138,761 | 5,508 | 144,269 | |||||||||
Other operating expenses for the core banking segment are occupancy expenses, franchise taxes, FDIC insurance, data processing expenses, administrative expenses and other operating expenses, which can all be seen on the Consolidated Statements of Income. Additionally, board expenses, shareholder expenses, and settlement costs, makeup the other operating expense line item on the Consolidated Statements of Income. Other operating expenses for the financial technology segment are administrative expenses and armored car services.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 13, 2026 | Showing above |
| 2024 | Mar 14, 2025 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.