MainStreet Bancshares, Inc. (MNSB): Business Model Canvas [Dec-2025 Updated]

You're trying to map out exactly how MainStreet Bancshares, Inc. is making money as they pivot back to core community banking in the competitive DC metro area, right? Honestly, it's a fascinating strategy: they are balancing a solid core deposit base of $1.33 billion-which is 74% of all their deposits as of Q2 2025-against a heavy concentration in commercial real estate loans, hitting 366% of total capital. They are definitely walking a tightrope between their tech-enabled past and their relationship-focused future. See the full canvas below to understand precisely how they plan to keep that 3.42% Net Interest Margin humming while managing their $2.1 billion asset base.

MainStreet Bancshares, Inc. (MNSB) - Canvas Business Model: Key Partnerships

You're looking at the network MainStreet Bancshares, Inc. relies on to power its operations beyond its core community banking footprint. These aren't just vendors; they're critical enablers for scale and specialized services, especially given the bank's total assets stood at $2.1 billion as of Q2 2025.

Access to cash for customers is maintained through partnerships with external ATM network providers. This relationship gives MainStreet Bank customers access to a network of over 55,000 free ATMs. That's a key part of their branch-lite model, which also includes six full-service financial centers in the D.C. metro area.

The Avenu platform, MainStreet Bank's Banking-as-a-Service (BaaS) offering, depends on its fintech partners for deposit gathering and fee income generation. The platform itself is supported by a dedicated team of 30 full-time employees. The initial, and most publicized, relationship was with SafariPay, which anticipated moving 7,500 customers onto the Avenu platform during 2024, holding estimated aggregated balances near $4 million at that time.

For government-backed lending, MainStreet Bank partners with relevant government agencies to facilitate Small Business Administration (SBA) solutions. This focus area is proving valuable for core deposits; as of Q2 2025, government contracting relationships contributed an average of $75.5 million in demand deposit accounts. The bank actively manages these relationships, holding 29 asset-based lines of credit with government contractors, with $13.0 million outstanding against $79.2 million committed.

Funding the $1.8 billion loan portfolio requires diverse sources. While the bank is focused on core deposits, wholesale funding remains a necessary component. In Q2 2025, the reliance on non-core deposits was intentionally reduced by approximately 19% quarter-over-quarter, with brokered/listing sources falling to $468.7 million from $577.9 million the prior quarter. That $468.7 million represents the real-life figure for those non-core, wholesale funding sources at that time.

Institutional investor engagement is another vital partnership, signaling confidence from major market players. In Q3 2025, we saw significant activity from large funds. Here's a look at some of the institutional moves impacting MNSB:

• BLACKROCK, INC. added 34,493 shares in Q3 2025.
• The estimated value of BlackRock, Inc.'s Q3 2025 addition was approximately $718,489.
• The addition represented an 11.5% increase in BlackRock, Inc.'s position.
• Overall, 35 institutional investors added shares in Q3 2025.

To summarize the quantitative aspects of these key relationships, look at this breakdown:

The bank's total loan portfolio was $1.8 billion in Q2 2025, supported by these varied funding and lending channels. Finance: draft the Q3 2025 liquidity coverage ratio against the Q2 2025 figure by Friday.

MainStreet Bancshares, Inc. (MNSB) - Canvas Business Model: Key Activities

MainStreet Bancshares, Inc. (MNSB) focuses its key activities on core community banking functions, actively managing its balance sheet and winding down non-core ventures as of late 2025.

Core commercial and retail deposit gathering remains central, though total deposits saw a contraction in the second quarter of 2025. The total deposit base was $1.799B, reflecting a 5.8% quarter-over-quarter decline. The activity involves a strategic mix of deposit types:

• Core deposits: $1.33 billion (74% of total deposits).
• Non-core deposits: $469 million (26% of total deposits).
• Government contracting relationships contributed an average of $75.5 million in demand deposit accounts.

The cost of these core funds was 2.74%, compared to 4.40% for non-core funds.

Commercial Real Estate (CRE) and construction lending is a major activity, with the bank managing a high concentration relative to its equity base. The combined CRE concentration stood at 366% of total capital in Q2 2025, a reduction from 388% in Q1 2025. The total loan portfolio was $1.8 billion. The concentration breakdown is as follows:

Providing specialized government contracting lines of credit is a specific focus area, leveraging relationships in the Washington, D.C., metro market. This activity involves maintaining a specific set of specialized credit facilities:

• Number of asset-based lines of credit with government contractors: 29.
• Outstanding balance on these lines: $13.0 million.
• Total committed amount for these lines: $79.2 million.
• Utilization rate on these lines: 16%.

Strategic balance sheet management to optimize Net Interest Margin (NIM) is a key operational focus. The reported NIM for Q2 2025 was 3.75%. This was achieved partly by lowering the total funding cost by 20 basis points to 3.29%. The loan to deposit ratio was kept at 99% to maximize earnings power. Furthermore, $152 million in Certificates of Deposit (CDs) are scheduled to reprice in the second half of 2025.

Managing the transition away from the Avenu Banking-as-a-Service (BaaS) model involves shutting down the subsidiary and realizing cost savings. The Avenu unit held $41 million in deposits at year-end 2024. The bank projected operating expenses to drop by approximately 13% to $12.5 million in Q2 2025, with a further reduction to $11.5 million expected by year-end 2025 due to the closure.

Finance: draft 13-week cash view by Friday.

MainStreet Bancshares, Inc. (MNSB) - Canvas Business Model: Key Resources

You're looking at the core assets MainStreet Bancshares, Inc. (MNSB) relies on to execute its strategy in the competitive DC metro market. Honestly, for a community bank, the quality and composition of these resources are what truly matter right now, especially given the recent focus on core banking.

The balance sheet strength is a primary resource. As of the second quarter of 2025, MainStreet Bancshares, Inc. reported total assets of $2.1 billion. To give you the absolute latest snapshot, total assets on the balance sheet as of September 2025 were $2.12 Billion USD. This capital base supports their lending and operational capacity. Furthermore, the deposit franchise is a critical, high-quality resource, anchored by a core deposit base of $1.33 billion in Q2 2025, which represented 74% of their total deposits at that time. That high percentage of core funding is a significant advantage in managing funding costs.

The human capital is tightly focused. The team consists of 174 full-time employees, and the majority of these bankers live in the DMV area, meaning they understand the local business environment intimately. This localized expertise supports their physical footprint, which, while branch-lite, is strategically placed. They operate six full-service financial centers across key Virginia and D.C. locations.

The technology asset is the proprietary Avenu platform. MainStreet Bancshares, Inc. uses its proprietary Avenu software platform to deliver embedded banking services, positioning the bank to service fintechs and other partners digitally. This is their play for scalable, non-traditional deposit gathering and fee income, even though the initial capitalized software value was impaired in the prior year, the solution remains operational and a key part of their resource mix.

Here's a quick look at the hard numbers underpinning these resources:

Beyond the balance sheet and headcount, the physical and technological infrastructure forms the delivery mechanism for their value proposition:

• Proprietary Avenu software platform for embedded banking services.
• Six full-service financial centers in key Virginia and D.C. locations.
• Locations include Herndon, Fairfax, McLean, Leesburg, Clarendon, and Washington, D.C.
• Access to 55,000 free ATMs via the Allpoint network.

Finance: draft 13-week cash view by Friday.

MainStreet Bancshares, Inc. (MNSB) - Canvas Business Model: Value Propositions

Highly personalized and responsive service for small and medium-sized businesses.

• Bank where you are more than just a number.
• Personal touch delivered is more satisfying than just a number.

Specialized lending products for government contractors.

The government contracting book has $2.5 million in outstanding term debt, amortizing rapidly with an average remaining term of 30 months.

The bank maintains 29 asset-based lines of credit with government contractors, with $13.0 million outstanding against $79.2 million committed, reflecting a 16% utilization rate.

The average deposit relationship attributable to this portfolio is $75.5 million over the quarter.

Branch-lite model offering convenience via extensive ATM and digital banking.

MainStreet Bancshares, Inc. operates with six full-service financial centers.

MainStreet Bank provides access to 55,000 free ATMs.

Robust online business banking technology: Put Our Bank in Your Office®.

MainStreet has put its bank in well over 1,000 businesses in the metropolitan area using its online business banking technology.

Strong asset quality with non-performing loans at 0.40% of gross loans in Q2 2025.

Here's the quick math on asset quality as of Q2 2025:

Total deposits were $1.799B as of Q2 2025.

Total assets for MainStreet Bancshares, Inc. were $2.1 billion.

Finance: draft 13-week cash view by Friday.

MainStreet Bancshares, Inc. (MNSB) - Canvas Business Model: Customer Relationships

You're focused on building a bank that sticks with its clients, which is exactly what MainStreet Bancshares, Inc. (MNSB) emphasizes through its high-touch community model in the Washington, D.C. metropolitan area.

The core of this relationship strategy for business and professional clients involves dedicated attention. MainStreet Bancshares, Inc. has put its bank in service for well over 1,000 businesses in the metro area through its technology-enabled service, allowing them to offer sophisticated cash management and instant-issue Debit Cards right where the client operates. This is supported by a physical footprint of six full-service financial centers in locations like Fairfax, McLean, and Washington, D.C., alongside access to 55,000 free ATMs.

The community banking approach is about deep local knowledge. As Chief Lending Officer Tom Floyd noted, success comes from the team's unwavering credit discipline and knowledge of the key players in the community. This personalized service extends to specialized segments; for instance, government contracting relationships are a significant source of funding, contributing an average of $75.5 million in demand deposit accounts as of Q2 2025.

Digital self-service complements the personal touch. MainStreet Bancshares, Inc. offers a fully integrated online and mobile banking solution, ensuring clients can manage finances 24/7. While the bank maintains a branch-lite strategy, the digital tools are robust enough to support its business focus. This balance is key to maximizing earnings power, reflected in the 99% loan-to-deposit ratio reported in Q2 2025.

Active management of credit risk is a direct outcome of strong client relationships, as you can only resolve issues effectively if you know the players. The discipline here yielded tangible results in Q2 2025. Management reported the full collection of $13.2 million owed on a previously non-accrual loan, which included 100% of the principal, default-rate interest, and all associated fees. This action significantly cleaned up the balance sheet.

Here's a quick look at how asset quality metrics, which are a direct reflection of credit relationship health, looked at the end of Q2 2025:

The commitment to working with customers, as stated by the Chief Lending Officer, is clearly yielding results in profitability and asset quality improvement. The net interest margin expanded to 3.75% in Q2 2025, up 45 basis points from the previous quarter, showing that strong relationships translate to better financial performance. You'll want to watch how the bank manages its elevated CRE concentration, which stood at 366% of capital as of Q2 2025, even as management intends to balance the pipeline with more non-CRE lending.

The relationship strategy also involves capital stewardship. MainStreet Bancshares, Inc. maintains an active share repurchase plan, with approximately $3.1 million in available capacity as of Q2 2025, signaling management's confidence in the intrinsic value derived from these client connections.

• Focus on core banking franchise building.
• Six full-service financial centers in operation.
• Digital tools support the 'Put Our Bank in Your Office' model.
• Non-accrual loans fell to 0.40% of gross loans in Q2 2025.
• Core deposits grew by $187 million year-over-year (as of year-end 2024).

Finance: draft a sensitivity analysis on the impact of a 50 basis point NIM change on the Q2 2025 Net Interest Income of $19.3 million by Monday.

MainStreet Bancshares, Inc. (MNSB) - Canvas Business Model: Channels

You're looking at how MainStreet Bancshares, Inc. (MNSB) gets its value proposition to the market, which is a deliberate mix of physical presence and digital reach in the Washington, DC metropolitan area. Here's the quick math on the physical and digital footprint as of late 2025, based on their latest reported figures, primarily from the second and third quarters of 2025.

The physical network is intentionally lean, supporting a branch-lite strategy. This approach focuses on high-impact locations rather than broad saturation. As of the second quarter of 2025, MainStreet Bancshares, Inc. operates six full-service financial centers. These centers are strategically located in Herndon, Fairfax, McLean, Leesburg, Clarendon, and Washington, D.C.. To support customers needing cash access beyond these locations, the bank provides access to an extensive network of 55,000 free ATMs.

The digital channels are key to serving their business-focused clientele, allowing them to 'Put Our Bank in Your Office®'. MainStreet Bank offers a fully integrated online and mobile banking platform. This technology has allowed MainStreet to place its banking services in well over 1,000 businesses in the metropolitan area by the end of 2024. This digital focus supports their core deposit base, which stood at $1.33 billion as of Q2 2025, representing 74% of total deposits.

For direct client engagement, the model relies on direct business banker outreach and sales, which is central to their community bank focus and supporting their commercial and professional lending products. The bank was noted as the first community bank in the DC metro area to offer a full online business banking solution.

Regarding the Avenu BaaS solution (Banking-as-a-Service), the strategy has seen some shifts. While the software platform was launched in late 2024 to drive fintech partnerships for low-cost deposits and fee income, there was commentary in Q1 2025 suggesting a strategic reset where Avenu BaaS would not be moving forward. However, the underlying software remains a component of the solution as of early 2025. The bank is committed to providing innovative embedded banking services, even as it refocuses on its core community banking franchise.

Here is a snapshot of the core quantitative channel metrics as reported around mid-2025:

The emphasis on the digital platform is clear, as MainStreet Bank was the first community bank in the Washington, D.C., metropolitan area to offer a full online business banking solution. This digital capability, combined with the targeted physical footprint, is how MainStreet Bancshares, Inc. serves its market. Finance: draft a projection for the utilization rate of the 55,000 ATM network based on Q2 2025 deposit/asset growth by next Tuesday.

MainStreet Bancshares, Inc. (MNSB) - Canvas Business Model: Customer Segments

You're looking at MainStreet Bancshares, Inc. (MNSB) as of late 2025, and the customer focus has definitely sharpened back to its core community bank mission. The strategic pivot away from the Banking-as-a-Service (BaaS) venture means the energy is now squarely on the established, high-value segments in the DC metro area.

The primary audience remains the local ecosystem: small and medium-sized businesses (SMBs) and professional practices that need more than just a transactional account. MainStreet Bank serves these clients with commercial loans, including general working capital, plant and equipment financing, and specialized solutions like SBA 7A and 504 lending. The bank operates six physical branches across key areas like Fairfax, McLean, and Washington, D.C., supporting its physical-lite strategy with robust online and mobile banking for business customers.

The government contractor segment is a standout for deposit concentration. This group provides MainStreet Bank with significant, high-quality, low-cost funding. As of Q2 2025, the average deposit relationship tied to this specific portfolio was a hefty $75.5 million in demand deposits. That's a massive anchor for funding stability. To support these contractors, the bank has a dedicated lending structure:

• Total government contracting lines of credit in place: 29.
• Outstanding balances on these lines as of Q1 2025: $9.2 million.
• Total commitments for these lines: $80.9 million.
• Utilization rate on these lines: 11%.

Retail clients are the other half of the core. They are situated in the high-income DC metro market, which, as of Q2 2025, showed a median household income of $125,027 and average home listing prices around $907,420. These clients access standard depository services, consumer loans, and debit/credit cards. The bank's total assets stood at $2.1 billion in Q2 2025, with a total loan portfolio of $1.8 billion.

Now, about the fintech segment via the Avenu BaaS platform: you need to know this is a closed chapter. MainStreet Bancshares officially pulled the plug on Avenu in Q1 2025, deciding to devote energy back to the core bank after the timeline for return on invested capital extended too far. The bank had invested roughly $22 million building the platform. At year-end 2024, Avenu held just $41 million in deposits, missing its target of $200 million. The closure is expected to reduce noninterest expenses by about 13% to $12.5 million in Q2 2025, with a further drop to $11.5 million by year-end 2025.

Here's a quick look at the balance sheet context supporting these segments as of mid-2025:

Finance: draft 13-week cash view by Friday.

MainStreet Bancshares, Inc. (MNSB) - Canvas Business Model: Cost Structure

You're looking at the expenses that drive MainStreet Bancshares, Inc.'s operations as of late 2025. The cost structure is heavily influenced by funding costs and the necessary overhead to run a modern, digitally-focused community bank.

The most significant variable cost centers on funding the balance sheet. In Q2 2025, the average cost for core deposits, which totaled $1.33 billion (representing 74% of total deposits), settled at 2.74%. To be fair, the non-core deposits carried a higher funding burden at 4.40% for that same period. Management is actively working to shift this mix, as evidenced by the overall total funding cost contracting to 3.29% in Q2 2025. Still, this interest expense remains a primary driver of the cost base.

Operating expenses (OpEx) are a key area of focus for MainStreet Bancshares, Inc. The efficiency ratio for Q3 2025 stood at 69.50%. That's a tangible improvement from the 81.45% seen in Q3 2024, showing progress in expense management as the bank refocuses on core community banking. Management had an expected quarterly run rate for OpEx (excluding one-time items) set at $12.9 million for Q3 2025, with a slight reduction projected to $12.6 million for Q4 2025.

The OpEx includes costs related to personnel and technology infrastructure. For instance, Q2 2025 included nonrecurring expenses of $1.8 million tied to personnel downsizing and contract terminations as part of the strategic realignment. On the technology front, a major past cost event was the nonrecurring impairment of capitalized intangible software, which was fully impaired at the end of 2024 and contributed to the $9.98 million loss reported for that year. MainStreet Bank definitely continues to invest in the very latest banking products and technology to support its service model.

The physical footprint and access network also contribute to fixed and semi-variable costs. MainStreet Bancshares, Inc. operates under a branch-lite model, which keeps facility costs lower than traditional banks. The network consists of six full-service financial centers located in key areas like Fairfax and Washington, D.C. For customer access, the bank leverages the Allpoint network, providing customers access to 55,000 free ATMs.

Here's a quick look at some key cost and efficiency metrics:

• Core Deposit Average Cost (Q2 2025): 2.74%
• Total Funding Cost (Q2 2025): 3.29%
• Q3 2025 Efficiency Ratio: 69.50%
• Nonrecurring Personnel Costs (Q2 2025): $1.8 million
• Expected OpEx Run Rate (Q3 2025): $12.9 million (excluding nonrecurring)

The following table summarizes the key components influencing the cost structure as of the latest reported periods:

Finance: draft the Q4 2025 OpEx forecast variance analysis by next Tuesday.

MainStreet Bancshares, Inc. (MNSB) - Canvas Business Model: Revenue Streams

The revenue streams for MainStreet Bancshares, Inc. (MNSB) are fundamentally anchored in traditional community banking operations, primarily driven by the interest earned on its loan assets, supplemented by fee income and other non-interest sources.

The core engine of revenue generation is the Net Interest Income (NII) derived from the loan portfolio. As of the second quarter of 2025 (Q2 2025), MainStreet Bancshares maintained a total loan portfolio size of $1.8 billion. This portfolio supports the primary revenue component.

For the third quarter of 2025 (Q3 2025), the reported Net Interest Margin (NIM) on a fully taxable equivalent (FTE) basis was 3.42%. However, management highlighted a core Net Interest Margin, which excludes one-time items, standing at a healthy 3.54% for Q3 2025. This core NIM reflects a well-structured balance sheet designed to handle rate changes.

The actual Net Interest Income (NII) for the three months ending September 30, 2025, was reported as $17.10 million (or $17,102 thousand). For the nine-month period ending September 30, 2025, the cumulative Net Interest Income reached $68.97 million.

Here's a quick look at the key interest-related metrics for Q3 2025:

Non-interest income, which includes various fee-based services, also contributes to the revenue base. In Q3 2025, non-interest income saw an increase of $236,000 compared to the prior quarter, supported by a gain on the retirement of subordinated debt and higher fee income components. The total operating revenue (Net Interest Income plus Non-Interest Income) for Q3 2025 was $18.17 million.

The bank's origination activity directly feeds the interest income stream. Year-to-date 2025, MainStreet Bancshares originated $97 million in new or increased loan commitments. Furthermore, the bank participated out $13 million in loans to other banks over the same period. The lending focus remains on relationship-driven opportunities supported by strong credit underwriting.

The revenue profile also includes activity from the Avenu Banking-as-a-Service (BaaS) solution, though this segment is undergoing a strategic shift. While MainStreet Bancshares has pivoted back to core community banking, with the Avenu unit effectively closing after failing to meet targets (e.g., holding only $41 million in deposits at year-end 2024 against a $200 million target), residual activity or final wrap-up revenue was present in Q3 2025. For the third quarter of 2025, the Financial Technology Segment, which housed Avenu, reported:

• Interest Income: $185 thousand.
• Segment Gross Profit: $376 thousand.

This contrasts with the nine-month period ending September 30, 2025, where non-interest expenses increased due to the transition away from BaaS operations. You should definitely track how quickly these residual BaaS-related revenues or costs phase out.

Finance: draft 13-week cash view by Friday.