MainStreet Bancshares, Inc. Announces First Quarter 2026 Results

FAIRFAX, Va., April 20, 2026 (GLOBE NEWSWIRE) -- MainStreet Bancshares, Inc. (NASDAQ:MNSB, MNSBP)), the financial holding company for MainStreet Bank, reported a net income of $4.1 million for the quarter-ended March 31, 2026, resulting in earnings per common share of $0.48. The net interest margin expanded 9 basis points during the quarter to 3.47%, resulting from consistent loan pricing and lower funding costs.

During the quarter the Company executed a buyback of 273,448 shares, and the book value per common share ended the quarter at $25.63.  The Company and Bank remain strongly capitalized.

"Our team's disciplined execution continues to drive value for our shareholders.  With robust liquidity and a growing book value, we leveraged our share buyback program to take advantage of accretive opportunities in the market.  At the same time, we remain focused on delivering strong and sustainable earnings growth," said Jeff W. Dick, Chairman and CEO of MainStreet Bancshares, Inc. and MainStreet Bank.

"We continue to replace higher cost funds with lower cost deposits which is a key driver of our expanding net interest margin," said Alex Vari, CFO of MainStreet Bancshares, Inc. and MainStreet Bank.  "We've seen our eighth straight quarter with improvement in our total cost of deposits.  This is a testament to our diligence in structuring noncore deposits while our business bankers maintain and grow valuable relationships within our community.  Total core funding is $1.4 billion and total deposits grew to over $1.9 billion."

"Net loans increased for the quarter to $1.85 billion resulting in a well-managed 98% loan-to-deposit ratio.  We're pleased to have grown our owner-occupied commercial real estate book by $79 million year-over-year.  Our owner-occupied relationships also bring good deposit balances, which helps to maximize the value of our customer relationships," said Tom Floyd, Chief Lending Officer of MainStreet Bank. 

Nonperforming assets as a percentage of total assets settled at 2.47% while loans 30-89 days past due and accruing improved to 0.95%.  In response, Chris Johnston, Chief Credit Officer of MainStreet Bank, added, "We have a strong credit culture and a comprehensive underwriting process.  The loans we are currently working to resolve are secured by properly leveraged real estate with personal guarantees.  Our primary objective is to work with borrowers to resolve loans that have elevated risk without exposing the Bank to a loss of principal.  Our team's track record on resolutions is strong – with a total accumulated principal loss of less-than $10 million over the entire 22-year history for the commercial loan portfolio."

About MainStreet Bank: MainStreet operates seven branches in Herndon, Fairfax, McLean, Leesburg, Middleburg, Clarendon, and Washington, D.C. MainStreet Bank has over 55,000 free ATMs and a fully integrated online and mobile banking solution. The Bank is not restricted by a conventional branching system, as it can offer business customers the ability to Put Our Bank in Your Office^®. With robust and easy-to-use online business banking technology, MainStreet has "put our bank" in thousands of businesses in the metropolitan area.

MainStreet Bank has a robust line of business and professional lending products, including government contracting lines of credit, commercial lines and term loans, residential and commercial construction, and commercial real estate. MainStreet also works with the SBA to offer 7A and 504 lending solutions. From sophisticated cash management to enhanced mobile banking and instant-issue Debit cards, MainStreet Bank is always looking for ways to improve our customer's experience.

MainStreet Bank was the first community bank in the Washington, D.C., metropolitan area to offer a full online business banking solution. MainStreet Bank was also the first bank headquartered in the Commonwealth of Virginia to offer CDARS – a solution that provides multi-million-dollar FDIC insurance. Further information on the Bank can be obtained by visiting its website at mstreetbank.com.

This release contains forward-looking statements, including our expectations with respect to future events that are subject to various risks and uncertainties. The statements contained in this release that are not historical facts are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Words such as "may," "will," "could," "should," "expect," "plan," "project," "intend," "anticipate," "believe," "estimate," "predict," "potential," "pursuant," "target," "continue," and similar expressions are intended to identify such forward-looking statements. Factors that could cause actual results to differ materially from management's projections, forecasts, estimates and expectations include: fluctuation in market rates of interest and loan and deposit pricing, adverse changes in the overall national economy as well as adverse economic conditions in our specific market areas, future impacts of pandemic outbreaks, maintenance and development of well-established and valued client relationships and referral source relationships, and acquisition or loss of key production personnel. We caution readers that the list of factors above is not exclusive. The forward-looking statements are made as of the date of this release, and we may not undertake steps to update the forward-looking statements to reflect the impact of any circumstances or events that arise after the date the forward-looking statements are made. In addition, our past results of operations are not necessarily indicative of future performance.

UNAUDITED CONSOLIDATED BALANCE SHEET INFORMATION (In thousands)
		March 31, 2026				December 31, 2025*				September 30, 2025				June 30, 2025				March 31, 2025
ASSETS
Cash and due from banks		$	33,044			$	25,179			$	23,940			$	20,888			$	18,384
Interest-bearing deposits at other financial institutions			783				1,276				1,315				864				735
Federal funds sold			134,288				136,301				102,039				111,532				183,521
Total cash and cash equivalents			168,115				162,756				127,294				133,284				202,640
Investment securities available for sale (AFS), at fair value			57,021				57,954				58,338				56,138				55,935
Investment securities held to maturity (HTM), at amortized cost, net of allowance for credit losses of $0 for all periods			13,790				13,798				14,293				14,846				15,657
Restricted securities, at amortized cost			6,998				7,005				7,005				7,005				7,005
Loans, net of allowance for credit losses of $19,049, $19,308, $18,831, $19,057, and $19,460, respectively			1,850,961				1,841,833				1,788,243				1,767,432				1,811,789
Premises and equipment, net			13,430				13,608				13,212				13,344				13,020
Other real estate owned, net			1,094				1,697				—				—				—
Property held for sale, at fair value			2,745				2,728				3,225				3,225				—
Accrued interest and other receivables			13,453				14,518				13,622				15,023				9,607
Bank owned life insurance			41,071				40,752				40,433				40,117				39,809
Other assets			54,615				56,020				59,124				64,367				67,383
Total Assets		$	2,223,293			$	2,212,669			$	2,124,789			$	2,114,781			$	2,222,845
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Non-interest bearing deposits		$	359,113			$	378,694			$	324,717			$	330,045			$	345,319
Interest-bearing demand deposits			120,700				119,407				123,231				124,090				106,033
Savings and NOW deposits			138,667				121,905				125,214				116,069				124,049
Money market deposits			545,804				499,334				458,946				463,904				511,925
Time deposits			750,441				779,844				778,727				764,439				820,999
Total deposits			1,914,725				1,899,184				1,810,835				1,798,547				1,908,325
Subordinated debt, net			70,035				69,936				69,837				71,238				72,138
Other liabilities			23,549				24,958				25,754				31,526				32,764
Total Liabilities			2,008,309				1,994,078				1,906,426				1,901,311				2,013,227
Stockholders' Equity:
Preferred stock			27,263				27,263				27,263				27,263				27,263
Common stock			28,247				29,008				29,833				29,825				29,810
Capital surplus			61,045				66,531				68,895				68,261				67,612
Retained earnings			104,360				101,557				98,793				95,585				92,305
Accumulated other comprehensive loss			(5,931	)			(5,768	)			(6,421	)			(7,464	)			(7,372	)
Total Stockholders' Equity			214,984				218,591				218,363				213,470				209,618
Total Liabilities and Stockholders' Equity		$	2,223,293			$	2,212,669			$	2,124,789			$	2,114,781			$	2,222,845

*Derived from audited financial statements

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME INFORMATION (In thousands, except share and per share data)
		Three Months Ended
		March 31, 2026				December 31, 2025				September 30, 2025				June 30, 2025				March 31, 2025
INTEREST INCOME:
Interest and fees on loans		$	29,518			$	29,969			$	30,688			$	32,443			$	31,111
Interest on investment securities
Taxable securities			418				421				435				431				420
Tax-exempt securities			287				276				270				267				263
Interest on interest-bearing deposits at other financial institutions			10				10				11				10				22
Interest on federal funds sold			985				1,198				1,060				1,135				1,147
Total interest income			31,218				31,874				32,464				34,286				32,963
INTEREST EXPENSE:
Interest on interest-bearing demand deposits			890				1,064				1,071				1,004				1,048
Interest on savings and NOW deposits			389				390				467				391				221
Interest on money market deposits			3,991				4,246				4,623				4,707				5,276
Interest on time deposits			7,650				8,244				8,369				8,595				9,031
Interest on federal funds purchased			25				—				28				—				65
Interest on subordinated debt			779				788				804				799				812
Total interest expense			13,724				14,732				15,362				15,496				16,453
Net interest income			17,494				17,142				17,102				18,790				16,510
Provision for credit losses			(131	)			328				144				(543	)			—
Net interest income after provision for credit losses			17,625				16,814				16,958				19,333				16,510
NON-INTEREST INCOME:
Deposit account service charges			573				559				557				538				530
Bank owned life insurance income			319				319				316				308				302
Gain on retirement of subordinated debt			—				—				145				68				60
Gain on equity securities			—				—				—				103				—
Loss on sale of other real estate owned			(685	)			—				—				—				—
Other non-interest income			200				22				104				49				47
Total non-interest income			407				900				1,122				1,066				939
NON-INTEREST EXPENSES:
Salaries and employee benefits			7,551				7,557				7,366				8,279				8,385
Furniture and equipment expenses			758				884				799				1,141				1,016
Advertising and marketing			296				469				571				530				481
Occupancy expenses			365				293				400				318				396
Outside services			460				688				625				1,290				1,173
Administrative expenses			241				238				259				270				229
Other real estate owned expenses			220				—				—				—				—
Other operating expenses			2,783				2,696				2,647				2,917				2,634
Total non-interest expenses			12,674				12,825				12,667				14,745				14,314
Income before income tax expense			5,358				4,889				5,413				5,654				3,135
Income tax expense			1,258				836				896				1,064				682
Net income			4,100				4,053				4,517				4,590				2,453
Preferred stock dividends			539				539				539				539				539
Net income available to common shareholders		$	3,561			$	3,514			$	3,978			$	4,051			$	1,914
Earnings per common share, basic and diluted		$	0.48			$	0.46			$	0.52			$	0.53			$	0.25
Weighted average number of common shares, basic and diluted			7,484,310				7,564,723				7,704,639				7,704,677				7,636,191

UNAUDITED LOAN, DEPOSIT AND BORROWING DETAIL (In thousands)
		March 31, 2026								December 31, 2025*								March 31, 2025								Percentage Change
		$ Amount				% of Total				$ Amount				% of Total				$ Amount				% of Total				Last 3 Mos				Last 12 Mos
LOANS:
Construction and land development loans		$	299,043				16.0	%		$	300,666				16.1	%		$	344,816				18.8	%			-0.5	%			-13.3	%
Residential real estate loans			448,290				23.9	%			441,578				23.7	%			451,324				24.6	%			1.5	%			-0.7	%
Commercial real estate loans			1,024,695				54.7	%			1,014,932				54.4	%			933,349				50.8	%			1.0	%			9.8	%
Commercial and industrial loans			100,782				5.3	%			106,991				5.7	%			105,180				5.7	%			-5.8	%			-4.2	%
Consumer loans			1,232				0.1	%			1,148				0.1	%			1,332				0.1	%			7.3	%			-7.5	%
Total Gross Loans		$	1,874,042				100.0	%		$	1,865,315				100.0	%		$	1,836,001				100.0	%			0.5	%			2.1	%
Less: Allowance for credit losses			(19,049	)							(19,308	)							(19,460	)
Net deferred loan fees			(4,032	)							(4,174	)							(4,752	)
Net Loans		$	1,850,961							$	1,841,833							$	1,811,789
DEPOSITS:
Non-interest bearing deposits		$	359,113				18.8	%		$	378,694				20.0	%		$	345,319				18.1	%			-5.2	%			4.0	%
Interest-bearing deposits:
Demand deposits			120,700				6.3	%			119,407				6.3	%			106,033				5.6	%			1.1	%			13.8	%
Savings and NOW deposits			138,667				7.2	%			121,905				6.4	%			124,049				6.5	%			13.8	%			11.8	%
Money market deposits			545,804				28.5	%			499,334				26.3	%			511,925				26.8	%			9.3	%			6.6	%
Time deposit $250,000 or more			478,971				25.0	%			490,594				25.8	%			541,772				28.4	%			-2.4	%			-11.6	%
Time deposit less than $250,000			271,470				14.2	%			289,250				15.2	%			279,227				14.6	%			-6.1	%			-2.8	%
Total Deposits		$	1,914,725				100.0	%		$	1,899,184				100.0	%		$	1,908,325				100.0	%			0.8	%			0.3	%
BORROWINGS:
Subordinated debt, net		$	70,035				100.0	%		$	69,936				100.0	%		$	72,138				100.0	%			0.1	%			-2.9	%
Total Borrowings		$	70,035				100.0	%		$	69,936				100.0	%		$	72,138				100.0	%			0.1	%			-2.9	%
Total Deposits and Borrowings		$	1,984,760							$	1,969,120							$	1,980,463								0.8	%			0.2	%
Core customer funding sources (1)		$	1,399,602				70.5	%		$	1,400,678				71.1	%		$	1,330,390				67.2	%			-0.1	%			5.2	%
Brokered and listing service sources (2)			515,123				26.0	%			498,506				25.3	%			577,935				29.2	%			3.3	%			-10.9	%
Subordinated debt, net (3)			70,035				3.5	%			69,936				3.6	%			72,138				3.6	%			0.1	%			-2.9	%
Total Funding Sources		$	1,984,760				100.0	%		$	1,969,120				100.0	%		$	1,980,463				100.0	%			0.8	%			0.2	%

*Derived from audited financial statements

(1	)	Includes ICS, CDARS, and reciprocal deposits maintained by customers, which represent sweep accounts tied to customer operating accounts.
(2	)	Consists of certificates of deposit (CD) through multiple listing services and multiple brokered deposit services, as well as ICS and CDARS one-way certificates of deposit and regional money market accounts. Excludes $138.5 million in core deposits placed in reciprocal networks for FDIC insurance coverage that will be classified as brokered deposits on the call report in pursuant to rule 12 CFR 337.6(e) as of March 31, 2026.
(3	)	Subordinated debt obligation qualifies as Tier 2 capital at the holding company and Tier 1 capital at the Bank.

UNAUDITED AVERAGE BALANCE SHEETS, INTEREST AND RATES (In thousands)
		For the three months ended March 31, 2026												For the three months ended March 31, 2025
		Average Balance				Interest Income/ Expense(3)(4)				Average Yields/ Rate (annualized)(3)(4)				Average Balance				Interest Income/ Expense(3)(4)				Average Yields/ Rate (annualized)(3)(4)
ASSETS:
Interest-earning assets:
Loans(1)(2)		$	1,863,613			$	29,518				6.42	%		$	1,838,358			$	31,111				6.86	%
Securities:
Taxable			49,742				418				3.41	%			53,143				420				3.21	%
Tax-exempt			36,164				363				4.07	%			35,200				333				3.84	%
Interest-bearing deposits at other financial institutions			1,103				10				3.68	%			2,039				22				4.38	%
Federal funds sold			101,091				985				3.95	%			109,651				1,147				4.24	%
Total interest-earning assets		$	2,051,713			$	31,294				6.19	%		$	2,038,391			$	33,033				6.57	%
Other assets			128,115												117,070
Total assets		$	2,179,828											$	2,155,461
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Interest-bearing demand deposits		$	119,624			$	890				3.02	%		$	111,413			$	1,048				3.81	%
Savings and NOW deposits			134,931				389				1.17	%			67,851				221				1.32	%
Money market deposits			491,732				3,991				3.29	%			537,733				5,276				3.98	%
Time deposits			773,632				7,650				4.01	%			798,007				9,031				4.59	%
Total interest-bearing deposits		$	1,519,919			$	12,920				3.45	%		$	1,515,004			$	15,576				4.17	%
Federal funds purchased			2,557				25				3.97	%			5,610				65				4.70	%
Subordinated debt, net			69,996				779				4.51	%			73,043				812				4.51	%
Total interest-bearing liabilities		$	1,592,472			$	13,724				3.50	%		$	1,593,657			$	16,453				4.19	%
Demand deposits and other liabilities			369,543												353,711
Total liabilities		$	1,962,015											$	1,947,368
Stockholders' Equity			217,813												208,093
Total Liabilities and Stockholders' Equity		$	2,179,828											$	2,155,461
Interest Rate Spread											2.69	%											2.38	%
Net Interest Income						$	17,570											$	16,580
Net Interest Margin											3.47	%											3.30	%

(1	)	Includes loans classified as non-accrual
(2	)	Total loan interest income includes amortization of deferred loan fees, net of deferred loan costs
(3	)	Income and yields for all periods presented are reported on a tax-equivalent basis using the federal statutory rate of 21%
(4	)	Refer to "Unaudited Reconciliation of Certain Non-GAAP Financial Measures" for reconciliation of non-GAAP measures

UNAUDITED SUMMARY FINANCIAL DATA (Dollars in thousands except per share data)
		At or For the Three Months Ended
		March 31, 2026				March 31, 2025
Per share Data and Shares Outstanding
Earnings per common share (basic and diluted)		$	0.48			$	0.25
Book value per common share		$	25.63			$	23.67
Weighted average common shares (basic and diluted)			7,484,310				7,636,191
Common shares outstanding at end of period			7,324,049				7,703,197
Performance Ratios
Return on average assets (annualized)			0.76	%			0.46	%
Return on average equity (annualized)			7.63	%			4.78	%
Return on average common equity (annualized)			7.58	%			4.29	%
Yield on earning assets (FTE)(2) (annualized)			6.19	%			6.57	%
Cost of interest-bearing liabilities (annualized)			3.50	%			4.19	%
Net interest spread (FTE)(2) (annualized)			2.69	%			2.38	%
Net interest margin (FTE)(2) (annualized)			3.47	%			3.30	%
Non-interest income as a percentage of average assets (annualized)			0.08	%			0.18	%
Non-interest expense to average assets (annualized)			2.36	%			2.69	%
Efficiency ratio(3)			70.80	%			82.03	%
Allowance for Credit Losses
Allowance for credit losses (ACL)
Beginning balance, ACL - loans		$	19,308			$	19,450
Add: recoveries			22				10
Less: charge-offs			(281	)			—
Add: provision for credit losses - loans			—				—
Ending balance, ACL - loans		$	19,049			$	19,460
Beginning balance, reserve for unfunded commitment (RUC)		$	335			$	287
Provision for unfunded commitments, net			(131	)			—
Ending balance, RUC		$	204			$	287
Total allowance for credit losses		$	19,253			$	19,747
Allowance for credit losses on loans to total gross loans			1.02	%			1.06	%
Allowance for credit losses on loans to non-performing loans			35.44	%			89.82	%
Net charge-offs to average gross loans (annualized)			0.06	%			0.00	%
Concentration Ratios
Commercial real estate loans to total capital (4)			367.59	%			388.24	%
Construction loans to total capital (5)			100.13	%			115.56	%
Past due and Non-performing Assets
Loans 30-89 days past due and accruing to total gross loans			0.95	%			2.19	%
Loans 90 days past due and accruing to total gross loans			0.00	%			0.00	%
Non-accrual loans to total gross loans			2.88	%			1.18	%
Other real estate owned, net		$	1,094			$	—
Non-performing loans		$	53,751			$	21,665
Non-performing assets to total assets			2.47	%			0.97	%
Regulatory Capital Ratios (Bank only) (1)
Total risk-based capital ratio			15.64	%			15.83	%
Tier 1 risk-based capital ratio			14.63	%			14.78	%
Leverage ratio			12.81	%			12.90	%
Common equity tier 1 ratio			14.63	%			14.78	%
Other information
Common shares closing stock price		$	22.20			$	16.72
Total equity / total assets			9.67	%			9.43	%
Average equity / average assets			9.99	%			9.65	%
Number of full time equivalent employees			168				182
Number of full service branch offices			7				6

(1	)	Regulatory capital ratios as of March 31, 2026 are preliminary
(2	)	Refer to "Unaudited Reconciliation of Certain Non-GAAP Financial Measures" for reconciliation of non-GAAP measures
(3	)	Efficiency ratio is calculated as non-interest expense as a percentage of net interest income and non-interest income
(4	)	Commercial real estate includes only non-owner occupied, multifamily, and construction loans as a percentage of Bank capital
(5	)	Construction loans as a percentage of Bank capital

Unaudited Reconciliation of Certain Non-GAAP Financial Measures (Dollars In thousands)
		For the three months ended March 31,
		2026				2025
Net interest margin (FTE)
Net interest income (GAAP)		$	17,494			$	16,510
FTE adjustment on tax-exempt securities			76				70
Net interest income (FTE) (non-GAAP)			17,570				16,580
Average interest-earning assets			2,051,713				2,038,391
Net interest margin (GAAP)			3.46	%			3.28	%
Net interest margin (FTE) (non-GAAP)			3.47	%			3.30	%

		For the three months ended March 31,
		2026				2025
Yield on earning assets (FTE)
Total interest income (GAAP)		$	31,218			$	32,963
FTE adjustment on tax-exempt securities			76				70
Total interest income (FTE) (non-GAAP)			31,294				33,033
Average interest-earning assets			2,051,713				2,038,391
Yield on earning assets (GAAP)			6.17	%			6.56	%
Yield on earning assets (FTE) (non-GAAP)			6.19	%			6.57	%

		For the three months ended March 31,
		2026				2025
Net interest spread (FTE)
Yield on earning assets (GAAP)			6.17	%			6.56	%
Yield on earning assets (FTE) (non-GAAP)			6.19	%			6.57	%
Yield on interest-bearing liabilities (GAAP)			3.50	%			4.19	%
Net interest spread (GAAP)			2.67	%			2.37	%
Net interest spread (FTE) (non-GAAP)			2.69	%			2.38	%

Contact: Billy Freesmeier

Chief of Staff

(703) 481-4579