07:01:52 EST Sun 08 Feb 2026
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MainStreet Bancshares Inc. Reports a Profitable 2025 and remains focused on serving the Washington, DC Metropolitan Community

2026-01-26 08:00 ET - News Release

MainStreet Bancshares Inc. Reports a Profitable 2025 and remains focused on serving the Washington, DC Metropolitan Community

PR Newswire

Strategic Balance Sheet Management Yields a Healthy Net Interest Margin

FAIRFAX, Va., Jan. 26, 2026 /PRNewswire/ -- MainStreet Bancshares, Inc. (Nasdaq: MNSB & MNSBP), the financial holding company for MainStreet Bank, reported a net income of $15.6 million for the year-ended December 31, 2025, resulting in earnings per common share of $1.76. The Company executed a buyback of 209,000 shares during the fourth quarter as part of its share buyback plan. The Company and Bank remain strongly capitalized.

"The team delivered quickly on our focused return to core banking," said Jeff W. Dick, Chairman and CEO of MainStreet Bancshares, Inc. and MainStreet Bank. "We are steadfast in increasing profitability and primed to go forward."

"The net interest margin expanded to 3.46% for 2025, a 33-basis point increase from the previous year," said Alex Vari, Chief Financial Officer of MainStreet Bancshares, Inc. and MainStreet Bank. "We plan to preserve and grow this strong net interest margin and continue to control our expenses to enhance our future performance. We are laser-focused on building a strong balance sheet and our portfolio is well-positioned for the current and anticipated interest rate environment."

"We continue to prove positive outcomes as we manage our asset quality and grow our loan portfolio," said Tom Floyd, Chief Lending Officer of MainStreet Bank. "Our team increased gross loans by $54 million in the fourth quarter, and we're encouraged by the momentum carrying into this year."

About MainStreet Bank: MainStreet Bank is coming to Middleburg, Virginia in February 2026! Our newest branch will be located at 10 North Pendleton Street, Middleburg, Virginia 20118.

In addition, MainStreet operates six branches in Herndon, Fairfax, McLean, Leesburg, 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)




                                                                                                                                                       December                   September                    June 30,                     March 31,                      December
                                                                                                                                                 31, 2025             30, 2025                    2025                       2025                31, 2024*



 
          ASSETS



 Cash and due from banks                                                                                                                  $
        25,179        $
        23,940            $
       20,888             $
        18,384                 $
      21,351



 Interest-bearing deposits at other financial institutions                                                                                           1,276                   1,315                        864                          735                          1,711



 Federal funds sold                                                                                                                                136,301                 102,039                    111,532                      183,521                        184,646



 Total cash and cash equivalents                                                                                                                   162,756                 127,294                    133,284                      202,640                        207,708



 Investment securities available for sale (AFS), at fair                                                                                            56,454                  58,338                     56,138                       55,935                         55,747


 value



 Investment securities held to maturity (HTM), at                                                                                                   15,298                  14,293                     14,846                       15,657                         16,078


 amortized cost, net of allowance for credit losses of $0 for all periods



 Restricted securities, at amortized cost                                                                                                            7,005                   7,005                      7,005                        7,005                          6,873



 Loans, net of allowance for credit losses of $19,308,                                                                                           1,841,833               1,788,243                  1,767,432                    1,811,789                      1,810,556

                                                                       
   $18,831, $19,057, $19,460, and $19,450, respectively



 Premises and equipment, net                                                                                                                        13,530                  13,212                     13,344                       13,020                         13,287



 Other real estate owned, net                                                                                                                        1,697



 Property held for sale, at fair value                                                                                                               2,806                   3,225                      3,225



 Accrued interest and other receivables                                                                                                             14,518                  13,622                     15,023                        9,607                         11,311



 Bank owned life insurance                                                                                                                          40,752                  40,433                     40,117                       39,809                         39,507



 Other assets                                                                                                                                       56,020                  59,124                     64,367                       67,383                         67,031



 
          Total Assets                                                                                                               $
        2,212,669     $
        2,124,789         $
       2,114,781          $
        2,222,845              $
      2,228,098



 
          LIABILITIES AND STOCKHOLDERS' EQUITY



 
          Liabilities:



 Non-interest bearing deposits                                                                                                           $
        378,694       $
        324,717           $
       330,045            $
        345,319                $
      324,307



 Interest-bearing demand deposits                                                                                                                  119,407                 123,231                    124,090                      106,033                        139,780



 Savings and NOW deposits                                                                                                                          121,905                 125,214                    116,069                      124,049                         64,337



 Money market deposits                                                                                                                             499,334                 458,946                    463,904                      511,925                        560,082



 Time deposits                                                                                                                                     779,844                 778,727                    764,439                      820,999                        819,288



 Total deposits                                                                                                                                  1,899,184               1,810,835                  1,798,547                    1,908,325                      1,907,794



 Subordinated debt, net                                                                                                                             69,936                  69,837                     71,238                       72,138                         73,039



 Other liabilities                                                                                                                                  24,958                  25,754                     31,526                       32,764                         39,274



 
          Total Liabilities                                                                                                                    1,994,078               1,906,426                  1,901,311                    2,013,227                      2,020,107



 
          Stockholders' Equity:



 Preferred stock                                                                                                                                    27,263                  27,263                     27,263                       27,263                         27,263



 Common stock                                                                                                                                       29,008                  29,833                     29,825                       29,810                         29,466



 Capital surplus                                                                                                                                    66,531                  68,895                     68,261                       67,612                         67,823



 Retained earnings                                                                                                                                 101,557                  98,793                     95,585                       92,305                         91,150



 Accumulated other comprehensive loss                                                                                                              (5,768)                (6,421)                   (7,464)                     (7,372)                       (7,711)



 
          Total Stockholders' Equity                                                                                                             218,591                 218,363                    213,470                      209,618                        207,991



 
          Total Liabilities and Stockholders' Equity                                                                                 $
        2,212,669     $
        2,124,789         $
       2,114,781          $
        2,222,845              $
      2,228,098




          *Derived from audited financial statements

                                                                        
 
   UNAUDITED CONSOLIDATED STATEMENTS OF INCOME (LOSS) INFORMATION

                                                                            
  (In thousands, except share and per share data)




                                                                                                                Year-to-Date                                                
          
           Three Months Ended


                                                                                                        December                                December                      December                                   September                June 30,                       March 31, December
                                                                                              31, 2025                    31, 2024*                        31, 2025               30, 2025                            2025               2025              31, 2024



 
            INTEREST INCOME:



 Interest and fees on loans                                                         $
          124,211                    $
          125,177          $
          29,969        $
         30,688                  $
          32,443   $
     31,111           $
      31,323



 Interest on investment securities



 Taxable securities                                                                               1,707                                  1,693                         421                      435                                 431             420                      431



 Tax-exempt securities                                                                            1,076                                  1,093                         276                      270                                 267             263                      262



 Interest on interest-bearing deposits at other financial institutions                               54                                     41                          10                       11                                  10              22                       15



 Interest on federal funds sold                                                                   4,540                                  6,611                       1,198                    1,060                               1,135           1,147                    3,088



 Total interest income                                                                          131,588                                134,615                      31,874                   32,464                              34,286          32,963                   35,119



 
            INTEREST EXPENSE:



 Interest on interest-bearing demand deposits                                                     4,187                                  8,661                       1,064                    1,071                               1,004           1,048                    2,612



 Interest on savings and NOW deposits                                                             1,469                                    754                         390                      467                                 391             221                      201



 Interest on money market deposits                                                               18,852                                 21,386                       4,246                    4,623                               4,707           5,276                    5,475



 Interest on time deposits                                                                       34,239                                 37,364                       8,244                    8,369                               8,595           9,031                   10,003



 Interest on federal funds purchased                                                                 93                                    575                                                  28                                                 65



 Interest on Federal Home Loan Bank advances                                                                                               46



 Interest on subordinated debt                                                                    3,203                                  3,255                         788                      804                                 799             812                      787



 Total interest expense                                                                          62,043                                 72,041                      14,732                   15,362                              15,496          16,453                   19,078



 Net interest income                                                                             69,545                                 62,574                      17,142                   17,102                              18,790          16,510                   16,041



 Provision for credit losses                                                                       (70)                                 6,763                         328                      144                               (543)                                  3,407



 Net interest income after provision for credit losses                                           69,615                                 55,811                      16,814                   16,958                              19,333          16,510                   12,634



 
            NON-INTEREST INCOME:



 Deposit account service charges                                                                  2,184                                  1,996                         559                      557                                 538             530                      481



 Bank owned life insurance income                                                                 1,245                                  1,189                         319                      316                                 308             302                      304



 Gain on retirement of subordinated debt                                                            273                                                                                       145                                  68              60



 Gain on equity securities                                                                          103                                                                                                                          103



 Net loss on securities called or matured                                                                                                (48)



 Other non-interest income                                                                          222                                    115                          22                      104                                  49              47                       22



 Total non-interest income                                                                        4,027                                  3,252                         900                    1,122                               1,066             939                      807



 
            NON-INTEREST EXPENSES:



 Salaries and employee benefits                                                                  31,587                                 30,475                       7,557                    7,366                               8,279           8,385                    8,253



 Furniture and equipment expenses                                                                 3,840                                  3,636                         884                      799                               1,141           1,016                      830



 Advertising and marketing                                                                        2,051                                  2,199                         469                      571                                 530             481                      600



 Occupancy expenses                                                                               1,407                                  1,614                         293                      400                                 318             396                      358



 Outside services                                                                                 3,776                                  3,627                         688                      625                               1,290           1,173                    1,168



 Administrative expenses                                                                            996                                    929                         238                      259                                 270             229                      243



 Computer software intangible impairment                                                                                               19,721                                                                                                                        19,721



 Other operating expenses                                                                        10,894                                 10,766                       2,696                    2,647                               2,917           2,634                    3,258



 Total non-interest expenses                                                                     54,551                                 72,967                      12,825                   12,667                              14,745          14,314                   34,431



 Income (loss) before income tax expense (benefit)                                               19,091                               (13,904)                      4,889                    5,413                               5,654           3,135                 (20,990)



 Income tax expense (benefit)                                                                     3,478                                (3,924)                        836                      896                               1,064             682                  (4,823)



 Net income (loss)                                                                               15,613                                (9,980)                      4,053                    4,517                               4,590           2,453                 (16,167)



 Preferred stock dividends                                                                        2,156                                  2,156                         539                      539                                 539             539                      539



 Net income (loss) available to common shareholders                                  $
          13,457                   $
          (12,136)          $
          3,514         $
         3,978                   $
          4,051    $
     1,914         $
      (16,706)



 Earnings (loss) per common share, basic and diluted                                   $
          1.76                     $
          (1.60)           $
          0.46          $
         0.52                    $
          0.53     $
     0.25           $
      (2.20)



 Weighted average number of common shares, basic and diluted                                  7,652,504                              7,606,391                   7,564,723                7,704,639                           7,704,677       7,636,191                7,603,318




          *Derived from audited financial statements

                                                
      
            UNAUDITED LOAN, DEPOSIT AND BORROWING DETAIL

                                                                  
          (In thousands)




                                                            December 31, 2025                                     September 30, 2025                   December 31, 2024                    Percentage Change


                                           
       
        $ Amount                                     % of            
          
       $ Amount                        % of  
   
            $ Amount                   % of
                                                                                                                                                                                                 Total                   Last 3    Last 12
                                                                             Total                                                    Total                                               Mos                      Mos



 
            LOANS:



 Construction and land development loans      $
      300,666                       16.1                     $
         312,318                  17.2        $
          391,253     21.3                       -3.7     -23.2
                                                                                                                                                                                    %
                                                                                       %                                                          %                                                           %        %



 Residential real estate loans                        441,578                       23.7                                411,592                  22.7                    438,745     23.9                        7.3       0.6
                                                                                                                                                                                    %
                                                                                       %                                                          %                                                           %        %



 Commercial real estate loans                       1,014,933                       54.4                                981,091                  54.2                    898,204     48.9                        3.4      13.0
                                                                                                                                                                                    %
                                                                                       %                                                          %                                                           %        %



 Commercial and industrial loans                      106,990                        5.7                                105,217                   5.8                    105,212      5.7                        1.7       1.7
                                                                                                                                                                                    %
                                                                                       %                                                          %                                                           %        %



 Consumer loans                                         1,148                        0.1                                  1,204                   0.1                      1,574      0.2                       -4.7     -27.1
                                                                                                                                                                                    %
                                                                                       %                                                          %                                                           %        %



 Total Gross Loans                          $
      1,865,315                      100.0                   $
         1,811,422                 100.0      $
          1,834,988    100.0                        3.0       1.7

                                                                                       %                                                          %                                 %                         %        %



 Less: Allowance for credit losses                   (19,308)                                                        (18,831)                                       (19,450)



 Net deferred loan fees                               (4,174)                                                         (4,348)                                        (4,982)



 Net Loans                                  $
      1,841,833                                             $
         1,788,243                           $
          1,810,556



 
            DEPOSITS:



 Non-interest bearing deposits                $
      378,694                       20.0                     $
         324,717                  17.9        $
          324,307     17.0                       16.6      16.8
                                                                                                                                                                                    %
                                                                                       %                                                          %                                                           %        %



 Interest-bearing deposits:



 Demand deposits                                      119,407                        6.3                                123,231                   6.8                    139,780      7.3                       -3.1     -14.6
                                                                                                                                                                                    %
                                                                                       %                                                          %                                                           %        %



 Savings and NOW deposits                             121,905                        6.4                                125,214                   6.9                     64,337      3.4                       -2.6      89.5
                                                                                                                                                                                    %
                                                                                       %                                                          %                                                           %        %



 Money market deposits                                499,334                       26.3                                458,946                  25.3                    560,082     29.4                        8.8     -10.8
                                                                                                                                                                                    %
                                                                                       %                                                          %                                                           %        %



 Time deposit $250,000 or more                        490,594                       25.8                                501,332                  27.8                    535,676     28.0                       -2.1      -8.4
                                                                                                                                                                                    %
                                                                                       %                                                          %                                                           %        %



 Time deposit less than $250,000                      289,250                       15.2                                277,395                  15.3                    283,612     14.9                        4.3       2.0
                                                                                                                                                                                    %
                                                                                       %                                                          %                                                           %        %



   Total Deposits                           $
      1,899,184                      100.0                   $
         1,810,835                 100.0      $
          1,907,794    100.0                        4.9      -0.5

                                                                                       %                                                          %                                 %                         %        %



 
            BORROWINGS:



 Subordinated debt, net                        $
      69,936                      100.0                      $
         69,837                 100.0         $
          73,039    100.0                        0.1      -4.2

                                                                                       %                                                          %                                 %                         %        %



   Total Borrowings                            $
      69,936                      100.0                      $
         69,837                 100.0         $
          73,039    100.0                        0.1      -4.2

                                                                                       %                                                          %                                 %                         %        %



   Total Deposits and Borrowings            $
      1,969,120                                             $
         1,880,672                           $
          1,980,833                                4.7      -0.6

                                                                                                                                                                                                              %        %





 Core customer funding sources (1)          $
      1,400,678                       71.1                   $
         1,289,952                  68.6      $
          1,439,657     72.7                        8.6      -2.7
                                                                                                                                                                                    %
                                                                                       %                                                          %                                                           %        %



 Brokered and listing service sources (2)             498,506                       25.3                                520,883                  27.7                    468,137     23.6                       -4.3       6.5
                                                                                                                                                                                    %
                                                                                       %                                                          %                                                           %        %



 Subordinated debt, net (3)                            69,936                        3.6                                 69,837                   3.7                     73,039      3.7                        0.1      -4.2
                                                                                                                                                                                    %
                                                                                       %                                                          %                                                           %        %



 Total Funding Sources                      $
      1,969,120                      100.0                   $
         1,880,672                 100.0      $
          1,980,833    100.0                        4.7      -0.6

                                                                                       %                                                          %                                 %                         %        %




 (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 $145.2 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 December 31, 2025.



 (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 December 31,                                   For the three months ended December 31,
                                                                                                                          2025                                                                               2024


                                                                                             Average                                   Interest                             Average                                 Average                          Interest                    Average
                                                                              Balance                           Income/                     Yields/                 Balance                           Income/                  Yields/
                                                                                                                                                 Rate                                                                                  Rate
                                                                               Expense                          Expense



                                                                                                                                                 (3)(4)       (annualized)                                                                                    (3)(4) (annualized)
                                                                                                                                                                                 (3)(4)                                                                                                  (3)(4)



 
            ASSETS:



 Interest-earning assets:



 Loans (1)(2)                                                            $
          1,819,614                  $
          29,969                      6.53            $
          1,808,894                  $
       31,323                 6.87
                                                                                                                                                          %                                                                                   %



 Securities:



 Taxable                                                                                50,844                                 421                      3.29                           53,566                              431                 3.19
                                                                                                                                                          %                                                                                   %



 Tax-exempt                                                                             35,631                                 349                      3.89                           35,512                              332                 3.71
                                                                                                                                                          %                                                                                   %



 Interest-bearing deposits at other financial institutions                               1,044                                  10                      3.80                            1,272                               15                 4.68
                                                                                                                                                          %                                                                                   %



 Federal funds sold                                                                    127,376                               1,198                      3.73                          262,323                            3,088                 4.67
                                                                                                                                                          %                                                                                   %



 Total interest-earning assets                                           $
          2,034,509                  $
          31,947                      6.23            $
          2,161,567                  $
       35,189                 6.46
                                                                                                                                                          %                                                                                   %



 Other assets                                                                          123,757                                                                                      129,077



 Total assets                                                            $
          2,158,266                                                                        $
          2,290,644



 
            Liabilities and Stockholders' Equity:



 Interest-bearing liabilities:



 Interest-bearing demand deposits                                          $
          125,673                   $
          1,064                      3.36              $
          231,496                   $
       2,612                 4.48
                                                                                                                                                          %                                                                                   %



 Savings and NOW deposits                                                              121,401                                 390                      1.27                           64,112                              201                 1.24
                                                                                                                                                          %                                                                                   %



 Money market deposits                                                                 467,891                               4,246                      3.60                          514,235                            5,475                 4.22
                                                                                                                                                          %                                                                                   %



 Time deposits                                                                         786,801                               8,244                      4.16                          809,924                           10,003                 4.90
                                                                                                                                                          %                                                                                   %



   Total interest-bearing deposits                                       $
          1,501,766                  $
          13,944                      3.68            $
          1,619,767                  $
       18,291                 4.48
                                                                                                                                                          %                                                                                   %



 Federal funds purchased                                                                     2                                                                                            2



 Subordinated debt, net                                                                 69,898                                 788                      4.47                           73,001                              787                 4.28
                                                                                                                                                          %                                                                                   %



   Total interest-bearing liabilities                                    $
          1,571,666                  $
          14,732                      3.72            $
          1,692,770                  $
       19,078                 4.47
                                                                                                                                                          %                                                                                   %



 Demand deposits and other liabilities                                                 368,502                                                                                      370,332



   Total liabilities                                                     $
          1,940,168                                                                        $
          2,063,102



 Stockholders' Equity                                                                  218,098                                                                                      227,542



   Total Liabilities and Stockholders' Equity                            $
          2,158,266                                                                        $
          2,290,644



 
            Interest Rate Spread                                                                                                                    2.51                                                                                 1.99
                                                                                                                                                          %                                                                                   %



 
            Net Interest Income                                                                              $
          17,215                                                                           $
       16,111



 
            Net Interest Margin                                                                                                                     3.36                                                                                 2.96
                                                                                                                                                          %                                                                                   %




 (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 AVERAGE BALANCE SHEETS, INTEREST AND RATES

                                                                  
          (In thousands)




                                                                                                 For the year ended December 31, 2025                                   For the year ended December 31, 2024


                                                                                             Average                                  Interest                           Average                               Average                         Interest                    Average
                                                                              Balance                           Income/                    Yields/               Balance                           Income/               Yields/
                                                                                                                                                Rate                                                                             Rate
                                                                                Expense                          Expense



                                                                                                                                                (3)(4)     (annualized)                                                                                 (3)(4) (annualized)
                                                                                                                                                                             (3)(4)                                                                                                (3)(4)



 
            ASSETS:



 Interest-earning assets:



 Loans (1)(2)                                                            $
          1,820,481                 $
          124,211                   6.82          $
          1,782,061                 $
     125,177                  7.02
                                                                                                                                                       %                                                                                %



 Securities:



 Taxable                                                                                52,401                               1,707                   3.26                         54,935                          1,693                  3.08
                                                                                                                                                       %                                                                                %



 Tax-exempt                                                                             35,382                               1,362                   3.85                         36,379                          1,384                  3.80
                                                                                                                                                       %                                                                                %



 Interest-bearing deposits at other financial institutions                               1,216                                  54                   4.44                            815                             41                  5.03
                                                                                                                                                       %                                                                                %



 Federal funds sold                                                                    111,144                               4,540                   4.08                        136,258                          6,611                  4.85
                                                                                                                                                       %                                                                                %



 Total interest-earning assets                                           $
          2,020,624                 $
          131,874                   6.53          $
          2,010,448                 $
     134,906                  6.71
                                                                                                                                                       %                                                                                %



 Other assets                                                                          120,810                                                                                   126,138



 Total assets                                                            $
          2,141,434                                                                     $
          2,136,586



 
            Liabilities and Stockholders' Equity:



 Interest-bearing liabilities:



 Interest-bearing demand deposits                                          $
          117,493                   $
          4,187                   3.56            $
          181,109                   $
     8,661                  4.78
                                                                                                                                                       %                                                                                %



 Savings and NOW deposits                                                              107,151                               1,469                   1.37                         54,385                            754                  1.39
                                                                                                                                                       %                                                                                %



 Money market deposit                                                                  486,945                              18,852                   3.87                        464,400                         21,386                  4.61
                                                                                                                                                       %                                                                                %



 Time deposits                                                                         785,378                              34,239                   4.36                        748,938                         37,364                  4.99
                                                                                                                                                       %                                                                                %



    Total interest-bearing deposits                                      $
          1,496,967                  $
          58,747                   3.92          $
          1,448,832                  $
     68,165                  4.70
                                                                                                                                                       %                                                                                %



 Federal funds purchased                                                                 1,973                                  93                   4.71                          9,941                            575                  5.78
                                                                                                                                                       %                                                                                %



 FHLB advances                                                                                                                                                                    820                             46                  5.61
                                                                                                                                                                                                                                          %



 Subordinated debt, net                                                                 71,223                               3,203                   4.50                         72,852                          3,255                  4.47
                                                                                                                                                       %                                                                                %



    Total interest-bearing liabilities                                   $
          1,570,163                  $
          62,043                   3.95          $
          1,532,445                  $
     72,041                  4.70
                                                                                                                                                       %                                                                                %



 Demand deposits and other liabilities                                                 358,146                                                                                   379,510



    Total liabilities                                                    $
          1,928,309                                                                     $
          1,911,955



 Stockholders' Equity                                                                  213,114                                                                                   224,631



    Total Liabilities and Stockholders' Equity                           $
          2,141,423                                                                     $
          2,136,586



 
            Interest Rate Spread                                                                                                                   2.58                                                                                2.01
                                                                                                                                                         %                                                                                  %



 
            Net Interest Income                                                                              $
          69,831                                                                        $
     62,865



 
            Net Interest Margin                                                                                                                  3.46                                                                              3.13
                                                                                                                                                       %                                                                                %




 (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                            At or For the Year Ended
                                                                                                                                        Months Ended


                                                                                                                                                    December 31,                                     December 31,


                                                                                                                                 2025                                      2024           2025                                   2024



 
            
              Per share Data and Shares Outstanding



 Earnings (loss) per common share (basic and diluted)                                                                    $
       0.46                             $
       (2.20)  $
        1.76                       $
          (1.60)



 Book value per common share                                                                                            $
       25.52                              $
       23.77  $
        25.52                        $
          23.77



 Tangible book value per common share (2)                                                                               $
       25.52                              $
       23.77  $
        25.52                        $
          23.77



 Weighted average common shares (basic and diluted)                                                                          7,564,723                                   7,603,318        7,652,504                                7,606,391



 Common shares outstanding at end of period                                                                                  7,496,571                                   7,603,765        7,496,571                                7,603,765



 
            
              Performance Ratios



 Return on average assets (annualized)                                                                                            0.75                                      (2.80)            0.73                                   (0.47)
                                                                                                                                      %                                          %               %                                       %



 Return on average equity (annualized)                                                                                            7.37                                     (28.19)            7.33                                   (4.44)
                                                                                                                                      %                                          %               %                                       %



 Return on average common equity (annualized)                                                                                     7.31                                     (29.13)            7.24                                   (6.15)
                                                                                                                                      %                                          %               %                                       %



 Yield on earning assets (FTE) (2) (annualized)                                                                                   6.23                                        6.46             6.53                                     6.71
                                                                                                                                      %                                          %               %                                       %



 Cost of interest-bearing liabilities (annualized)                                                                                3.72                                        4.47             3.95                                     4.70
                                                                                                                                      %                                          %               %                                       %



 Net interest spread (FTE) (2) (annualized)                                                                                       2.51                                        1.99             2.58                                     2.01
                                                                                                                                      %                                          %               %                                       %



 Net interest margin (FTE) (2) (annualized)                                                                                       3.36                                        2.96             3.46                                     3.13
                                                                                                                                      %                                          %               %                                       %



 Non-interest income as a percentage of average assets (annualized)                                                               0.17                                        0.14             0.19                                     0.15
                                                                                                                                      %                                          %               %                                       %



 Non-interest expense to average assets (annualized)                                                                              2.36                                        5.96             2.55                                     3.42
                                                                                                                                      %                                          %               %                                       %



 Efficiency ratio (3)                                                                                                            71.08                                      204.36            74.15                                   110.85
                                                                                                                                      %                                          %               %                                       %



 
            
              Allowance for Credit Losses



 Allowance for credit losses (ACL)



 Beginning balance, ACL - loans                                                                                        $
       18,831                             $
       18,327 $
        19,450                       $
          16,506



 Add: recoveries                                                                                                                     2                                           9              834                                       28



 Less: charge-offs                                                                                                                                                        (2,151)           (858)                                 (4,569)



 Add: provision for credit losses - loans                                                                                          475                                       3,265            (118)                                   7,485



 Ending balance, ACL - loans                                                                                           $
       19,308                             $
       19,450 $
        19,308                       $
          19,450





 Beginning balance, reserve for unfunded commitment (RUC)                                                                 $
       482                                $
       145    $
        287                        $
          1,009



 Provision for unfunded commitments, net                                                                                         (147)                                        142               48                                    (722)



 Ending balance, RUC                                                                                                      $
       335                                $
       287    $
        335                          $
          287



 Total allowance for credit losses                                                                                     $
       19,643                             $
       19,737 $
        19,643                       $
          19,737





 Allowance for credit losses on loans to total gross loans                                                                        1.04                                        1.06             1.04                                     1.06
                                                                                                                                      %                                          %               %                                       %



 Allowance for credit losses on loans to non-performing loans                                                                    58.19                                       89.84            58.19                                    89.84
                                                                                                                                      %                                          %               %                                       %



 Net charge-offs to average gross loans (annualized)                                                                              0.00                                        0.46             0.00                                     0.25
                                                                                                                                      %                                          %               %                                       %



 
            
              Concentration Ratios



 Commercial real estate loans to total capital (4)                                                                              354.85                                      393.79           354.85                                   393.79
                                                                                                                                      %                                          %               %                                       %



 Construction loans to total capital (5)                                                                                         98.06                                      131.92            98.06                                   131.92
                                                                                                                                      %                                          %               %                                       %



 
            
              Past due and Non-performing Assets



 Loans 30-89 days past due and accruing to total gross loans                                                                      0.98                                        0.00             0.98                                     0.00
                                                                                                                                      %                                          %               %                                       %



 Loans 90 days past due and accruing to total gross loans                                                                         0.00                                        0.00             0.00                                     0.00
                                                                                                                                      %                                          %               %                                       %



 Non-accrual loans to total gross loans                                                                                           1.69                                        1.18             1.69                                     1.18
                                                                                                                                      %                                          %               %                                       %



 Other real estate owned, net                                                                                           $
       1,697              
          $                   $
        1,697              
      $



 Non-performing loans                                                                                                  $
       31,482                             $
       21,650 $
        31,482                       $
          21,650



 Non-performing assets to total assets                                                                                            1.50                                        0.97             1.50                                     0.97
                                                                                                                                      %                                          %               %                                       %


                              Regulatory Capital Ratios (Bank only) 
 
 
    
           
                  (1)



 Total risk-based capital ratio                                                                                                  16.08                                       15.69            16.08                                    15.69
                                                                                                                                      %                                          %               %                                       %



 Tier 1 risk-based capital ratio                                                                                                 15.05                                       14.64            15.05                                    14.64
                                                                                                                                      %                                          %               %                                       %



 Leverage ratio                                                                                                                  13.28                                       12.08            13.28                                    12.08
                                                                                                                                      %                                          %               %                                       %



 Common equity tier 1 ratio                                                                                                      15.05                                       14.64            15.05                                    14.64
                                                                                                                                      %                                          %               %                                       %



 
            
              Other information



 Common shares closing stock price                                                                                      $
       20.36                              $
       18.10  $
        20.36                        $
          18.10



 Tangible equity / tangible assets                                                                                                9.88                                        9.33             9.88                                     9.33
                                                                                                                                      %                                          %               %                                       %



 Average tangible equity / average tangible assets (2)                                                                           10.11                                        9.21             9.95                                     9.80
                                                                                                                                      %                                          %               %                                       %



 Number of full time equivalent employees                                                                                          174                                         204              174                                      204



 Number of full service branch offices                                                                                               6                                           6                6                                        6




 (1) 
 Regulatory capital ratios as of December 31, 2025 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                         For the year ended
                                                                                                          December 31,                                   December 31,


                                                                                                        2025                               2024                2025                        2024



 
            Net interest margin (FTE)



 Net interest income (GAAP)                                                                $
          17,142                      $
       16,041    $
          69,545               $
       62,574



 FTE adjustment on tax-exempt securities                                                                   73                                   70                   286                           291



 Net interest income (FTE) (non-GAAP)                                                                  17,215                               16,111                69,831                        62,865





 Average interest-earning assets                                                                    2,034,509                            2,161,567             2,020,624                     2,010,448



 Net interest margin (GAAP)                                                                              3.34                                 2.94                  3.44                          3.11
                                                                                                             %                                   %                    %                            %



 Net interest margin (FTE) (non-GAAP)                                                                    3.36                                 2.96                  3.46                          3.13
                                                                                                             %                                   %                    %                            %




                                                                                                               For the three months ended                         For the year ended
                                                                                                          December 31,                                   December 31,


                                                                                                        2025                               2024                2025                        2024



 
            Yield on earning assets (FTE)



 Total interest income (GAAP)                                                              $
          31,874                      $
       35,119   $
          131,588              $
       134,615



 FTE adjustment on tax-exempt securities                                                                   73                                   70                   286                           291



 Total interest income (FTE) (non-GAAP)                                                                31,947                               35,189               131,874                       134,906





 Average interest-earning assets                                                                    2,034,509                            2,161,567             2,020,624                     2,010,448



 Yield on earning assets (GAAP)                                                                          6.22                                 6.45                  6.51                          6.70
                                                                                                             %                                   %                    %                            %



 Yield on earning assets (FTE) (non-GAAP)                                                                6.23                                 6.46                  6.53                          6.71
                                                                                                             %                                   %                    %                            %




                                                                                                               For the three months ended                         For the year ended
                                                                                                          December 31,                                   December 31,


                                                                                                        2025                               2024                2025                        2024



 
            Net interest spread (FTE)



 Yield on earning assets (GAAP)                                                                          6.22                                 6.45                  6.51                        6.70
                                                                                                             %                                   %                    %                          %



 Yield on earning assets (FTE) (non-GAAP)                                                                6.23                                 6.46                6.53                        6.71
                                                                                                             %                                   %                  %                          %





 Yield on interest-bearing liabilities (GAAP)                                                            3.72                                 4.47                3.95                        4.70
                                                                                                             %                                   %                  %                          %





 Net interest spread (GAAP)                                                                              2.50                                 1.98                2.56                          2.00
                                                                                                             %                                   %                  %                            %



 Net interest spread (FTE) (non-GAAP)                                                                    2.51                                 1.99                2.58                          2.01
                                                                                                             %                                   %                  %                            %




                                                                                                               For the three months ended                         For the year ended
                                                                                                          December 31,                                   December 31,


                                                                                                        2025                               2024                2025                        2024



 
            Average tangible stockholders' equity



 Total average stockholders' equity (GAAP)                                                $
          218,098                     $
       227,542   $
          213,114              $
       224,631



 Less: average intangible assets                                                                                                         (18,327)                                          (16,989)



 Total average tangible stockholders' equity (non-GAAP)                                               218,098                              209,215               213,114                       207,642




                                                                                                               For the three months ended                         For the year ended
                                                                                                          December 31,                                   December 31,


                                                                                                        2025                               2024                2025                        2024



 
            Average tangible assets



 Total average assets (GAAP)                                                            $
          2,158,266                   $
       2,290,644 $
          2,141,434            $
       2,136,586



 Less: average intangible assets                                                                                                         (18,327)                                          (16,989)



 Total average tangible assets (non-GAAP)                                                           2,158,266                            2,272,317             2,141,434                     2,119,597

Contact: Billy Freesmeier
Chief of Staff
(703) 481-4579

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SOURCE MainStreet Bancshares, Inc.

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