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
--------- --------- --------- --------- ---------
(MORE TO FOLLOW) Dow Jones Newswires
April 20, 2026 08:00 ET (12:00 GMT)
Comments