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.
“We have a strong credit culture and a comprehensive underwriting process. The loans we are currently working to resolve are secured by properly leveraged…”“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.
(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
(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
(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.(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%
(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
(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%
Contact: Billy Freesmeier
Chief of Staff
(703) 481-4579