Financial Data and Key Metrics Changes - The company reported a net loan increase of $51.7 million for the quarter and total deposits increased by $22.6 million [10] - The net interest margin (NIM) is reported at 3.15%, with a leveling off observed over the last several months [38][32] - The efficiency ratio stands at 78%, with a return on average assets of 0.5% and a return on average equity of 4.7% [38] Business Line Data and Key Metrics Changes - The loan portfolio reached $1.8 billion, with an average loan size of $1.9 million [12] - The company originated $73 million in new loans during the second quarter at a weighted average rate of 8.29% [14] - Non-performing loans account for 1.15% of total gross loans, with 76% of these loans related to two projects facing delays [42][79] Market Data and Key Metrics Changes - Core deposits now represent 78% of total deposits, with non-interest-bearing demand deposits comprising 27% of core deposits [39] - Non-core deposits represent 22% of total deposits, with a weighted average rate of 5.04% [39] Company Strategy and Development Direction - The company is focusing on a banking-as-a-service strategy, aiming to launch a fully compliant solution while managing regulatory risks [20][22] - The Avenue solution is expected to generate significant demand deposits, with projections of $225 million in year one and $1 billion by year five [18] - The management emphasizes a disciplined approach to loan pricing and risk management, with a focus on maintaining strong capital ratios [16][40] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the economic outlook and the potential for low-cost deposits in the second half of the year [32] - The company is committed to ensuring compliance and avoiding regulatory pitfalls, which could impact future growth [27][50] - The management believes that the Avenue solution will provide a competitive edge in the fintech space, despite delays in its launch [23][49] Other Important Information - The company has a strong liquidity position with $517 million available in secured advances and $129 million in unsecured lines [10] - The company repurchased 41,858 shares of common stock for an average price of $17.50, which was accretive to book value [45] Q&A Session Summary Question: Clarification on Avenue's regulatory situation - Management clarified that the recent regulatory actions do not indicate a problem at MainStreet but rather a need for more time to ensure compliance and customer acquisition [26][27] Question: Expectations for Avenue-related deposit growth - The company is still targeting $225 million in demand deposits by year-end, with hopes to reach at least $100 million [61] Question: Loan growth expectations for the remainder of the year - The company anticipates low single-digit loan growth for the year, with minor fluctuations in commercial real estate concentrations [77] Question: Concerns regarding non-performing assets - The increase in non-performing assets is primarily due to two projects nearing completion, with expected resolutions soon [79] Question: Guidance on expense growth and Avenue's impact - The company provided guidance for a 2% monthly expense run rate for the remainder of 2024, with reassessment planned for future quarters [80][81]

MainStreet Bank (MNSB) came out with quarterly earnings of $0.27 per share, missing the Zacks Consensus Estimate of $0.32 per share. This compares to earnings of $0.85 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -15.63%. A quarter ago, it was expected that this company would post earnings of $0.52 per share when it actually produced earnings of $0.36, delivering a surprise of -30.77%. Over the last four quarters, the comp ...

Core Financial Performance - MainStreet Bancshares, Inc. reported a net income of $2.6 million for Q2 2024, with total deposits reaching $1.8 billion, marking a 10.2% increase from Q2 2023 [1] - Loan growth increased by 8.6% year-over-year, also reaching $1.8 billion [1] - The net interest margin for the quarter was reported at 3.15%, indicating a stable performance despite higher deposit costs [2] Loan and Deposit Growth - The increase in loans was primarily driven by a rise in demand for commercial and industrial borrowing, as well as owner-occupied commercial real estate lending [2] - Core customer funding sources now account for 78% of total deposits, reflecting a strong foundation for future growth [2] - Total deposits increased to $1.755 billion, with significant contributions from various deposit categories, including demand deposits and money market accounts [16] Risk Management and Asset Quality - The bank maintains a solid loan portfolio with net charge-offs representing only eight basis points of average gross loans, and nonperforming assets accounting for 0.99% of total assets [3] - The lending team is focused on careful underwriting and maintaining engagement with borrowers throughout their project lifecycle [4] Banking-as-a-Service (BaaS) Initiatives - MainStreet Bank is implementing enhancements to its Avenu platform, which connects partners and applications to its banking services, aiming to improve scalability and compliance [5][6] - Avenu targets fintechs and other innovators, positioning itself as a leading financial technology company owned by a community bank [5][6] Historical Context and Future Outlook - The bank has experienced nine quarters in the current interest rate cycle, with expectations of an improving net interest margin as strategic initiatives take effect [2] - The bank's focus on customer care and building new relationships is expected to support continued growth in both deposits and loans [2]

Exhibit 99.1 The Bank maintains a strong portfolio of earning assets, with very nominal AOCI exposure. The loan portfolio remains solid with net charge offs representing a mere eight basis points of average gross loans. Nonperforming assets account for 0.99% of total assets. "We continue to carefully underwrite each loan opportunity and the lending team remains engaged with each borrower throughout their project lifecycle. If a borrower experiences a challenge, we work with them to face that challenge promp ...

FAIRFAX, Va., June 4, 2024 /PRNewswire/ -- MainStreet Bank and its parent company, MainStreet Bancshares, Inc. (Nasdaq: MNSB & MNSBP), are pleased to announce that Executive Vice President and Chief Lending Officer Tom Floyd has been honored as one of the nation's best and brightest young bankers. Chief Lending Officer Is Named to Prestigious 40 under 40 List Tom Floyd, Chief Lending Officer of MainStreet Bank (PRNewsfoto/MainStreet Bancshares, Inc.) Floyd has worked in banking across the Washington metropo ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to to Commission file number: 001-38817 MainStreet Bancshares, Inc. (Exact Name of Registrant as Specified in Its Charter) Virginia 81-2871064 (State or Other Jurisdiction of Incorporation or Organization) (I.R.S. Employer Identification No.) 10089 ...

MainStreet Bancshares, Inc. (NASDAQ:MNSB) Q1 2024 Earnings Conference Call April 22, 2024 2:00 PM ET Company Participants Jeff Dick - Chairman and Chief Executive Officer Alex Vari - Chief Accountant Tom Floyd - Chief Lending Officer Tom Chmelik - Chief Financial Officer Ben Baboval - Chief Risk Officer Conference Call Participants Chris Marinac - Janney Montgomery Scott Operator Good morning, our virtual earnings webcast. My name is Jeff Dick and I'm the Chairman and CEO of Main Street Bank Shares, Inc., a ...

MainStreet Bank (MNSB) came out with quarterly earnings of $0.36 per share, missing the Zacks Consensus Estimate of $0.52 per share. This compares to earnings of $1.01 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -30.77%. A quarter ago, it was expected that this company would post earnings of $0.68 per share when it actually produced earnings of $0.61, delivering a surprise of -10.29%.Over the last four quarters, the compan ...

Exhibit 99.1 PRESS RELEASE Contact: Debra Cope April 22, 2024 8:00 AM ET Director of Corporate Communications Desk (703) 481-4599 Mobile (202) 468-3184 MainStreet Bancshares Inc. reports a profitable first quarter Strong credit quality and no adverse loan portfolio trends FAIRFAX, Va., April 22, 2024 /PRNewswire/ -- MainStreet Bancshares, Inc. (Nasdaq: MNSB & MNSBP), the holding company for MainStreet Bank, reported net income of $2.77 million for the first quarter of 2024. "Our loan portfolio was well-posi ...

Strong credit quality and no adverse loan portfolio trends FAIRFAX, Va., April 22, 2024 /PRNewswire/ -- MainStreet Bancshares, Inc. (Nasdaq: MNSB & MNSBP), the holding company for MainStreet Bank, reported net income of $2.77 million for the first quarter of 2024. "Our loan portfolio was well-positioned for the current interest rate cycle and continues to generate strong and sustainable interest income.  During the first quarter of 2024, we experienced an uptick in deposit costs, compressing the net interes ...