MainStreet Bancshares, Inc. (NASDAQ:MNSB) announced today that its Board of Directors has declared a quarterly cash dividend for its 7.50% Series A Fixed-Rate Non-Cumulative Perpetual Preferred Stock. The dividend amounts to approximately $0.47 per Depositary Share, translating to $18.75 per share of Series A Preferred Stock.
The dividend will be payable on December 30, 2024, to shareholders on record as of the close of business on December 13, 2024. This declaration follows the issuance of 1,150,000 depositary shares, each representing a 1/40th ownership interest in a share of the Series A Preferred Stock, on September 15 and 25, 2020. These shares have a liquidation preference of $1,000 per share of Series A Preferred Stock, which is equivalent to $25 per Depositary Share, totaling an aggregate liquidation preference of $28,750,000.
MainStreet Bancshares, which operates within the state commercial banks sector, is based in Fairfax, Virginia. The company's Depositary Shares are traded on the Nasdaq Capital Market under the ticker symbol "MNSBP." Future dividends for the Series A Preferred Stock and associated Depositary Shares are expected to be paid quarterly in arrears, with payment dates on March 30, June 30, September 30, and December 30 annually, subject to declaration by the Board of Directors.
In other recent news, MainStreet Bancshares has issued its Q3 2024 earnings guidance, a noteworthy update for investors. The company also declared a cash dividend of $0.10 per share for its common stockholders, payable on November 19, 2024. Additionally, a quarterly cash dividend on its preferred stock was announced, valued at approximately $0.47 per depositary share, or $18.75 per share of its 7.50% Series A Fixed-Rate Non-Cumulative Perpetual Preferred Stock.
In governance matters, the company announced the retirement and resignation of Elizabeth S. Bennett, a long-standing board member, from the Board of Directors. These recent developments are part of MainStreet Bancshares' ongoing commitment to maintain transparency and provide updates on the bank's progress and strategic initiatives.
InvestingPro Insights
To provide additional context to MainStreet Bancshares' recent dividend declaration, let's examine some key financial metrics from InvestingPro. The company currently has a market capitalization of $134.42 million and trades at a price-to-book ratio of 0.68, suggesting it may be undervalued relative to its assets. This could be of interest to value investors considering the stock.
InvestingPro Tips highlight that MainStreet Bancshares has been profitable over the last twelve months, with analysts predicting continued profitability this year. However, it's worth noting that net income is expected to drop, which may impact future dividend sustainability. The company's current dividend yield stands at 2.18%, which could be attractive to income-focused investors.
For those seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for MainStreet Bancshares, providing a deeper dive into the company's financial health and prospects.
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