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PresentationJeff DickCEO & Chairman of the Board Welcome. My name is Jeff Dick. I'm the Chairman and CEO of MainStreet Bancshares, Inc. and MainStreet Bank. Thank you for joining our 2025 earnings webcast, which has been prerecorded due to inclement weather. If you have questions for us, please reach out to me or my Chief of Staff, Billy Freesmeier, at (703) 481-4579 to schedule a meeting. We will also be attending the February 4 and 5 Janney Conference in Scottsdale, Arizona, and would be happy to answer a ...

When we first met with a possible customer, we would give them the presentation and they would typically reply with, well, that's interesting. Let me know when you have a branch nearby. We persevered. It took a while to get customers comfortable with our solution. Once they had it, they couldn't do without it. Growth was slow in the beginning, but it quickly picked up. All these years later, we are still the largest provider of remote deposit of any bank serviced by our core processor, Jack Henry. Today, we ...

Financial Data and Key Metrics Changes - The company reported earnings per common share of $1.76 for 2025, with a return on average assets of 0.73% and a return on average tangible common equity of 7.24% [5] - Net interest margin was recorded at 3.46%, with net interest income growing by 11% over the year [6][5] - The company successfully navigated a technology transition, resulting in improved financial performance and a disciplined capital allocation strategy [5] Business Line Data and Key Metrics Changes - The loan portfolio experienced a 2% growth quarter-over-quarter, with a focus on smaller quality opportunities [18] - The composition of the loan portfolio includes 30% non-owner-occupied commercial real estate, 24% owner-occupied commercial real estate, 16% construction, 12% multifamily, 12% residential real estate, and 6% commercial and industrial [12] - The company maintained annual net charge-offs at virtually zero, reflecting strong credit discipline [11] Market Data and Key Metrics Changes - The D.C. metropolitan area remains vibrant, with a median household income of $125,000 and an average home listing price of $810,000 [2] - The company has expanded its liquidity facilities, covering over 30% of its entire deposit portfolio [7] Company Strategy and Development Direction - The company is focused on core banking and has strategically managed growth to maximize core profitability rather than pursuing growth for its own sake [3] - A branch-light strategy is employed to enhance efficiency, leveraging technology to deliver banking services [3] - The company is expanding its branch footprint and targeting high-value niche industries to scale its non-interest-bearing base [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, expecting continued loan and deposit growth momentum into the new year [7] - The company anticipates further funding cost relief throughout 2026, which may enhance net interest margins [6] - Management emphasized the importance of maintaining a well-diversified loan book and effective risk management practices [18] Other Important Information - The company repurchased 209,000 shares at a price that was 28% accretive to book value, with plans to continue share buybacks to enhance shareholder value [10] - The company is in a strong capital position, with a post-stress Common Equity Tier 1 ratio of 11.8%, well above the 7% threshold for well-capitalized institutions [16] Q&A Session Summary Question: What is the outlook for loan growth in 2026? - The company expects loan growth to be between 3% and 4% over the first six months of 2026 [9] Question: How is the company managing its loan portfolio? - The company is focusing on smaller-sized opportunities and maintaining a well-diversified loan book while actively managing across all categories [18] Question: What is the company's strategy regarding share repurchases? - The company plans to continue looking for opportunities to repurchase shares to enhance shareholder value [10]

MainStreet Bancshares (NasdaqCM:MNSB) Q4 2025 Earnings call January 26, 2026 10:00 AM ET Company ParticipantsAlex Vari - CFOJeff Dick - Chairman and CEOTom Floyd - EVP and Chief Lending OfficerJeff DickWelcome! My name is Jeff Dick. I'm the Chairman and CEO of MainStreet Bancshares, Inc., and MainStreet Bank. Thank you for joining our 2025 earnings webcast, which has been prerecorded due to inclement weather. If you have questions for us, please reach out to me or my Chief of Staff, Billy Freesmeier, at 703 ...

MainStreet Bancshares (NasdaqCM:MNSB) Q4 2025 Earnings call January 26, 2026 10:00 AM ET Speaker1Welcome! My name is Jeff Dick. I'm the Chairman and CEO of MainStreet Bancshares, Inc., and MainStreet Bank. Thank you for joining our 2025 earnings webcast, which has been prerecorded due to inclement weather. If you have questions for us, please reach out to me or my chief of staff, Billy Freesmeier, at 703-481-4579 to schedule a meeting. We will also be attending the February 4 and 5 Janney conference in Scot ...

MainStreet Bank (MNSB) came out with quarterly earnings of $0.46 per share, missing the Zacks Consensus Estimate of $0.49 per share. This compares to a loss of $0.12 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -6.12%. A quarter ago, it was expected that this company would post earnings of $0.51 per share when it actually produced earnings of $0.52, delivering a surprise of +1.96%.Over the last four quarters, the company ha ...

January 26, 2026 2025 Financial Highlights Forward-looking statements and additional information Statements in this presentation which are not historical are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These forward-looking statements may include discussions of the strategic plans and objectives or anticipated future performan ...

Financial Performance - MainStreet Bancshares reported a net income of $15.6 million for the year ended December 31, 2025, resulting in earnings per common share of $1.76[1] - Net income available to common shareholders was $13.457 million, a turnaround from a loss of $12.136 million in the previous year[10] - Earnings per common share increased to $1.76, compared to a loss of $1.60 per share in the same quarter last year[10] - For the year ended December 31, 2025, net interest income increased to $69,831,000 from $62,865,000 in 2024, reflecting a growth of 11.5%[18] - The return on average assets (annualized) improved to 0.75% in 2025 from a loss of (2.80)% in 2024[20] - Earnings per common share (basic and diluted) rose to $1.76 in 2025, compared to a loss of $(1.60) in 2024, marking a significant turnaround[20] Interest Income and Margin - The net interest margin expanded to 3.46% for 2025, a 33-basis point increase from the previous year[2] - Net interest income after provision for credit losses was $69.615 million, compared to $55.811 million in the same period last year, reflecting a significant increase of 24.7%[10] - Total interest income for the year-to-date reached $131.588 million, a slight decrease from $134.615 million in the previous year[10] - Net interest income (GAAP) for Q4 2025 was $17,142 million, up from $16,041 million in Q4 2024, representing a year-over-year increase of 6.9%[23] - Net interest margin (GAAP) improved to 3.34% in Q4 2025 from 2.94% in Q4 2024, indicating a significant enhancement in profitability[23] - Yield on earning assets (GAAP) decreased to 6.51% for the year 2025 from 6.70% in 2024, showing a decline in asset yield[23] Loan and Deposit Growth - Gross loans increased by $54 million in the fourth quarter, indicating positive momentum in the loan portfolio[2] - Total gross loans increased by 3.0% to $1,865,315, compared to $1,811,422 in the previous quarter[12] - Commercial real estate loans grew by 3.4% to $1,014,933, representing 54.4% of total loans[12] - Total deposits increased to $1,899.2 million as of December 31, 2025, up from $1,810.8 million in the previous quarter[8] - Non-interest bearing deposits increased to $378.7 million as of December 31, 2025, compared to $324.7 million in the previous quarter[8] - Non-interest bearing deposits rose by 16.6% to $378,694, accounting for 20.0% of total deposits[12] Expense Management - The company remains focused on controlling expenses to enhance future performance and profitability[2] - Total non-interest expenses decreased to $54.551 million from $72.967 million, showing a reduction of 25.2%[10] - The efficiency ratio improved to 71.08% in Q4 2025 from 204.36% in Q4 2024, indicating enhanced operational efficiency[20] Capital and Asset Position - Total assets reached $2,212.7 million as of December 31, 2025, compared to $2,124.8 million at the end of the previous quarter[8] - The total risk-based capital ratio was 16.08% as of December 31, 2025, compared to 15.69% in 2024, indicating a stronger capital position[20] - The allowance for credit losses on loans to total gross loans was 1.04% as of December 31, 2025, consistent with 1.06% in 2024[20] Shareholder Actions - The company executed a buyback of 209,000 shares during the fourth quarter as part of its share buyback plan[1] - The common shares closing stock price increased to $20.36 as of December 31, 2025, up from $18.10 in 2024, reflecting a growth of 12.5%[20] Non-Performing Loans - Non-performing loans increased to $31,482,000 in 2025 from $21,650,000 in 2024, representing a rise of 45.4%[20]

Financial Performance - For the three months ended September 30, 2025, net interest income increased to $17,102,000, up from $15,343,000 in the same period of 2024, representing a growth of 11.4%[10] - Net income for the three months ended September 30, 2025, was $4,517,000, a substantial increase from $265,000 in the same period of 2024, representing a growth of 1,607.5%[10] - Earnings per common share for the three months ended September 30, 2025, were $0.52, compared to a loss of $(0.04) per share in the same period of 2024[10] - Comprehensive income for the three months ended September 30, 2025, was $5,560,000, compared to $1,934,000 in 2024, indicating an increase of 187.5%[12] - Net income for the nine months ended September 30, 2025, was $11,560,000, an increase from $6,187,000 in the same period of 2024, representing an 87.5% growth[15] - Net income available to common shareholders for the nine months ended September 30, 2025, was $9,943,000, up from $4,570,000 in 2024, indicating a year-over-year growth of 117%[95] Income and Expenses - Non-interest income for the nine months ended September 30, 2025, totaled $3,126,000, an increase from $2,446,000 in the same period of 2024, reflecting a growth of 27.8%[10] - Total non-interest expense decreased to $12,667,000 for the three months ended September 30, 2025, down from $13,219,000 in 2024, a reduction of 4.2%[10] - The total interest expense for the three months ended September 30, 2025, decreased to $15,362,000 from $18,248,000 in 2024, a decline of 15.3%[10] - The company reported a net cash provided by operating activities of $8,234,000 for the nine months ended September 30, 2025, compared to $9,287,000 in the same period of 2024, a decrease of 11.3%[15] - Stock-based compensation expense for the nine months ended September 30, 2025, was $1,885,000, compared to $2,082,000 in the same period of 2024, a decrease of 9.5%[15] Credit Quality and Losses - The provision for credit losses on loans was $(66,000) for the three months ended September 30, 2025, compared to $3,125,000 in the same period of 2024, indicating a significant improvement in credit quality[10] - The total charge-offs for the three months ended September 30, 2025, amounted to $235,000, compared to $1.91 million for the same period in 2024[47] - The allowance for credit losses on loans was $18.83 million as of September 30, 2025, down from $19.45 million on December 31, 2024, reflecting a reduction of approximately 3.2%[47] - Total non-accrual loans as of September 30, 2025, amounted to $23,386,000, with no allowance recorded[48] - The provision for credit losses for the nine months ended September 30, 2025, was a negative $593,000, indicating a reversal compared to the previous year[47] Assets and Equity - Total stockholders' equity increased to $218,363,000 as of September 30, 2025, up from $207,991,000 at the end of 2024, reflecting a growth of 5.5%[13] - Cash and cash equivalents decreased to $127,294,000 at the end of September 2025, down from $232,114,000 at the end of September 2024, a decline of 45.4%[15] - The company’s total assets as of September 30, 2025, were not explicitly stated but can be inferred to have increased given the growth in equity and net income[16] Loans and Investments - The total gross loans decreased to $1.81 billion as of September 30, 2025, from $1.83 billion on December 31, 2024, representing a decline of approximately 1.4%[43] - The net loans stood at $1.79 billion as of September 30, 2025, compared to $1.81 billion as of December 31, 2024, indicating a decrease of about 1.5%[43] - The balance of investments in new market tax credits was $11.2 million, up from $9.4 million on December 31, 2024[41] - The company periodically invests in New Market Tax Credit (NMTC) opportunities related to community development projects[40] Regulatory and Compliance - The Company completed the registration of its common stock with the SEC on April 18, 2019, and is now classified as an accelerated filer effective with the filing of the December 31, 2024 Annual Report on Form 10-K[17] - The Company was approved to list shares of common stock on the Nasdaq Capital Market under the symbol "MNSB" as of April 22, 2019[18] Segment Performance - Segment profit for Core Banking for the three months ended September 30, 2025, was $5,801,000, while the Financial Technology segment reported a loss of $388,000[99] - Total consolidated interest income for the nine months ended September 30, 2025, was $102,839,000, with Core Banking contributing $101,503,000[100] Miscellaneous - The company plans to pivot away from certain Banking as a Service (BaaS) services, which may impact future financial results[103] - The software solution related to Avenu was deployed in October 2024, leading to changes in cost capitalization practices[103]