MainStreet Bancshares to Issue Preferred

Another smaller community banker is getting on the preferred stock issuance train.

Virginia community banker MainStreet Bancshares (MNSB) will be selling a new non-cumulative perpetual preferred.

Note that this is a pretty tiny bank with $1.5 billion in assets.

Also note that the company offered a payment deferral program to their customers during the Covid 19 pandemic and 22.5% of their outstanding loans are now in deferral–likely this could get ugly as time passes. Read their latest release here.

‘Talk’ is they will be selling around 1 million shares in the 7.375 to 7.50% area which would be comparable to what the other small bankers selling preferreds have priced around.

The preliminary prospectus can be found here.

mcg was right on this one.

2 thoughts on “MainStreet Bancshares to Issue Preferred”

  1. The Mudshark shore likes the rate but water seems a little murky. Do I bite to see if there blood is red or is that the ink on the paper

    1. I’ve been pretty bullish on some of these smaller bank preferred that are regularly coming out, but this one is a bit too murky for me as well.

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