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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.

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