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 $10 million over the entire 22-year history for the commercial loan portfolio."
About MainStreet Bank: MainStreet operates seven branches in Herndon, Fairfax, McLean, Leesburg, Middleburg, Clarendon, and Washington, D.C. MainStreet Bank has over 55,000 free ATMs and a fully integrated online and mobile banking solution. The Bank is not restricted by a conventional branching system, as it can offer business customers the ability to Put Our Bank in Your Office$(R)$ . 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, December September June 30, March 31,
2026 31, 2025* 30, 2025 2025 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, December September June 30, March 31,
2026 31, 2025 30, 2025 2025 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
------------------ --------------------- ------------------ --------------------
Last
% of % of % of 3 Last 12
$ Amount Total $ Amount Total $ Amount Total Mos 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
---------------------------------------------- ----------------------------------------------
Interest Average Yields/ Interest Average Yields/
Average Income/ Rate Average Income/ Rate
Balance Expense(3)(4) (annualized)(3)(4) Balance Expense(3)(4) (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
(END) Dow Jones Newswires
April 20, 2026 08:00 ET (12:00 GMT)