Financial Performance - Net income for the three months ended June 30, 2024, was $2,618 thousand, down 62.3% from $6,946 thousand in the same period of 2023[9]. - Net income for the six months ended June 30, 2024, was $5,923,000, compared to $15,098,000 for the same period in 2023, representing a decrease of 60.8%[20]. - Comprehensive income for the three months ended June 30, 2024, was $2,505 thousand, down from $6,264 thousand in the same period of 2023, indicating a decline of 60%[11]. - Basic earnings per share for the three months ended June 30, 2024, was $0.27, a decrease of 68.2% from $0.85 in the same period of 2023[9]. - Net income decreased by $4.3 million to $2.6 million for the three months ended June 30, 2024, down from $6.9 million for the same period in 2023[121]. Asset and Deposit Growth - Total assets increased to $2,093,746 thousand as of June 30, 2024, up from $2,035,432 thousand at December 31, 2023, representing a growth of approximately 2.8%[6]. - Total deposits rose to $1,755,363 thousand as of June 30, 2024, compared to $1,686,127 thousand at December 31, 2023, reflecting an increase of approximately 4.1%[6]. - Cash and cash equivalents at the end of the period were $91,459,000, down from $98,041,000 at the end of June 30, 2023, a decrease of 6.0%[20]. - The company experienced a net decrease in non-interest deposits of $49,970,000 for the six months ended June 30, 2024, compared to a net decrease of $161,697,000 in the same period of 2023[20]. - Core deposits grew by $124.5 million, or 9.9%, to $1.38 billion at June 30, 2024, compared to $1.25 billion at December 31, 2023[194]. Credit Losses and Loan Performance - Provision for credit losses on loans increased to $931 thousand for the three months ended June 30, 2024, compared to $617 thousand for the same period in 2023, indicating a rise of 50.9%[9]. - The allowance for credit losses on loans was $17,098,000 as of June 30, 2024, up from $16,506,000 at the end of 2023, reflecting a rise of approximately 3.6%[53]. - Non-performing loans increased to a balance of $20.7 million as of June 30, 2024, largely attributed to two relationships facing liquidity constraints[136]. - The total amount of classified loans in the Commercial and Industrial segment was $93.6 million, indicating potential areas for improvement[66]. - The total allowance for credit losses on loans to non-performing loans ratio was 82.63% as of June 30, 2024[192]. Interest Income and Expense - Net interest income for the three months ended June 30, 2024, was $15,289 thousand, a decrease of 20.3% compared to $19,271 thousand for the same period in 2023[9]. - Total interest income increased by $2.6 million, or 8.5%, to $33.3 million for the three months ended June 30, 2024, from $30.8 million for the same period in 2023[122]. - Interest expense increased by $6.6 million to $18.0 million for the three months ended June 30, 2024, from $11.4 million for the same period in 2023[127]. - The net interest margin compressed by 109 basis points from 4.24% for the three months ended June 30, 2023, to 3.15% for the same period in 2024[129]. - The average cost of deposits rose to 488 basis points for the three months ended June 30, 2024, compared to 350 basis points for the same period in 2023[128]. Non-Interest Income and Expenses - Total non-interest income for the three months ended June 30, 2024, was $873 thousand, a slight increase from $810 thousand in the same period of 2023[9]. - Non-interest expense increased to $12,668 thousand for the three months ended June 30, 2024, up from $10,852 thousand in the same period of 2023, marking a rise of 16.7%[9]. - Income tax expense decreased by $1.4 million, or 85.5%, to $238,000 for the three months ended June 30, 2024, driven by a decrease in income before income taxes of $5.7 million[143]. - Non-interest income decreased by $49,000, or 2.7%, to $1.8 million for the six months ended June 30, 2024, mainly due to lower deposit account service charges[164]. - Non-interest expense increased by $2.4 million, or 10.8%, to $25.0 million for the six months ended June 30, 2024, primarily due to increases in furniture and equipment expenses and salaries[165]. Regulatory and Compliance - The company is regulated under the Bank Holding Company Act of 1956 and is subject to supervision by the Federal Reserve[22]. - The total Risk-Based Capital ratio is 16.78%, significantly above the minimum target of 10.00%[184]. - The Common Equity Tier 1 Risk-Based Capital ratio stands at 15.85% as of June 30, 2024, exceeding the minimum target of 6.50%[184]. - The Tier 1 Risk-Based Capital ratio is 15.85% as of June 30, 2024, well above the minimum target of 8.00%[184]. - The company anticipates sufficient funds to meet current funding commitments despite potential outflows from deposits[205]. Strategic Initiatives and Future Outlook - The Company introduced Avenu, a Banking as a Service (BaaS) solution, which is expected to be deployed in 2024[27]. - The company created MainStreet Community Capital, LLC to apply for New Markets Tax Credit allocations to promote development in economically distressed areas[116]. - The company is focusing on market expansion and new product development to enhance future growth prospects[66]. - The company has capitalized $17.2 million in developing its SaaS solution for Banking as a Service (BaaS), which is expected to be deployed in the second half of 2024[115]. - The company operates six bank branches in Northern Virginia and Washington D.C., emphasizing personalized services to compete with larger banks[109].

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]

[Q2 2024 Financial Highlights](index=1&type=section&id=Q2%202024%20Financial%20Highlights) MainStreet Bancshares reported strong Q2 2024 financial results with significant deposit and loan growth, stable net interest margin, and progress in its Banking-as-a-Service initiative [Financial Performance Overview](index=1&type=section&id=Financial%20Performance%20Overview) MainStreet Bancshares reported a net income of $2.6 million for the second quarter of 2024, with total deposits and loans both increasing to $1.8 billion year-over-year Q2 2024 Key Financial Results | Metric | Q2 2024 | YoY Change | | :--- | :--- | :--- | | Net Income | $2.6 million | N/A | | Total Deposits | $1.8 billion | +10.2% | | Total Loans | $1.8 billion | +8.6% | - The company's loan portfolio is described as solid, with net charge-offs representing only **eight basis points** of average gross loans, and nonperforming assets at **0.99%** of total assets[4](index=4&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) Management noted a stabilized net interest margin at 3.15% in Q2 2024 despite industry pressures, with optimism for future improvement and strengthened core customer funding - The net interest margin settled at **3.15%** for the quarter, with management expressing optimism for future improvement, pending actions by the FOMC and other external factors[3](index=3&type=chunk) - Core customer funding sources have been strengthened, now accounting for **78%** of total deposits[3](index=3&type=chunk) - Loan growth was primarily driven by increased demand in commercial & industrial (C&I) loans and owner-occupied commercial real estate (CRE) lending[3](index=3&type=chunk) [Strategic Initiatives: Banking-as-a-Service (BaaS)](index=1&type=section&id=Strategic%20Initiatives%3A%20Banking-as-a-Service%20%28BaaS%29) The company is advancing its proprietary Banking-as-a-Service (BaaS) platform, Avenu, which is currently in limited production with ongoing enhancements for scalability and compliance - Avenu is the company's unique BaaS solution, combining a purpose-built technology core with its own banking charter, differentiating it from sponsor-bank or middleware models[6](index=6&type=chunk) - The Avenu platform is currently live and in limited production, with final enhancements being integrated to ensure a scalable and compliance-focused solution[5](index=5&type=chunk) - Avenu targets fintechs, social media companies, application developers, and entrepreneurs who are innovating money movement[7](index=7&type=chunk) [Consolidated Financial Statements (Unaudited)](index=3&type=section&id=Consolidated%20Financial%20Statements%20%28Unaudited%29) Unaudited consolidated financial statements detail the balance sheet, income statement, loan and deposit composition, and net interest margin analysis for Q2 2024 [Consolidated Balance Sheet](index=3&type=section&id=Consolidated%20Balance%20Sheet) As of June 30, 2024, total assets grew to $2.09 billion, supported by increased net loans and deposits, leading to a rise in total stockholders' equity Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2024 | June 30, 2023 | | :--- | :--- | :--- | | Total Assets | $2,093,746 | $1,949,351 | | Loans, net | $1,778,840 | $1,637,484 | | Total Deposits | $1,755,363 | $1,593,383 | | Total Liabilities | $1,869,031 | $1,738,843 | | Total Stockholders' Equity | $224,715 | $210,508 | [Consolidated Statement of Income](index=4&type=section&id=Consolidated%20Statement%20of%20Income) Net interest income for Q2 2024 decreased to $15.3 million due to higher interest expense, resulting in a net income of $2.6 million or $0.27 per diluted share Q2 Statement of Income Highlights (in thousands, except per share data) | Account | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | | :--- | :--- | :--- | | Total Interest Income | $33,327 | $30,706 | | Total Interest Expense | $18,038 | $11,435 | | Net Interest Income | $15,289 | $19,271 | | Provision for Credit Losses | $638 | $638 | | Total Non-interest Income | $873 | $810 | | Total Non-interest Expenses | $12,668 | $10,852 | | Net Income | $2,618 | $6,946 | | Net Income per Common Share, diluted | $0.27 | $0.85 | [Loan, Deposit, and Borrowing Detail](index=5&type=section&id=Loan%2C%20Deposit%2C%20and%20Borrowing%20Detail) The bank's $1.80 billion loan portfolio is concentrated in real estate, while total deposits grew 10.2% year-over-year with a significant shift towards interest-bearing accounts Loan Portfolio Composition as of June 30, 2024 | Loan Type | Amount (in thousands) | % of Total | | :--- | :--- | :--- | | Commercial real estate | $845,030 | 46.9% | | Residential real estate | $449,700 | 25.0% | | Construction and land development | $410,698 | 22.8% | | Commercial and industrial | $93,559 | 5.2% | | **Total Gross Loans** | **$1,801,219** | **100.0%** | Deposit Growth and Composition Changes (YoY) | Deposit Type | YoY % Change | | :--- | :--- | | Non-interest bearing deposits | -19.1% | | Interest-bearing demand deposits | +151.7% | | Money market accounts | +25.2% | | **Total Deposits** | **+10.2%** | [Average Balance Sheets and Net Interest Margin Analysis](index=6&type=section&id=Average%20Balance%20Sheets%20and%20Net%20Interest%20Margin%20Analysis) The net interest margin compressed to 3.15% in Q2 2024 due to a significant increase in the cost of interest-bearing liabilities, narrowing the interest rate spread Net Interest Margin Analysis (Q2 2024 vs Q2 2023) | Metric (annualized) | Q2 2024 | Q2 2023 | | :--- | :--- | :--- | | Yield on interest-earning assets | 6.84% | 6.75% | | Cost of interest-bearing liabilities | 4.87% | 3.58% | | Interest Rate Spread | 1.97% | 3.17% | | Net Interest Margin | 3.15% | 4.24% | [Key Financial Metrics and Ratios](index=8&type=section&id=Key%20Financial%20Metrics%20and%20Ratios) Key financial metrics and ratios for Q2 2024 highlight performance, asset quality, and capital adequacy, showing both challenges and stability [Performance Ratios and Per Share Data](index=8&type=section&id=Performance%20Ratios%20and%20Per%20Share%20Data) Performance ratios for Q2 2024 declined year-over-year, with ROA at 0.50% and ROE at 4.70%, while tangible book value per common share increased to $23.72 Key Performance Ratios (Annualized, Q2 2024 vs Q2 2023) | Ratio | Q2 2024 | Q2 2023 | | :--- | :--- | :--- | | Return on average assets (ROA) | 0.50% | 1.46% | | Return on average equity (ROE) | 4.70% | 13.40% | | Efficiency ratio | 78.38% | 54.04% | Per Share Data (Q2 2024 vs Q2 2023) | Metric | June 30, 2024 | June 30, 2023 | | :--- | :--- | :--- | | Earnings per common share (diluted) | $0.27 | $0.85 | | Book value per common share | $25.99 | $24.36 | | Tangible book value per common share | $23.72 | $22.73 | [Asset Quality](index=8&type=section&id=Asset%20Quality) Asset quality metrics showed some deterioration in Q2 2024 with non-performing assets at 0.99% of total assets, though net charge-offs remained minimal Asset Quality Indicators (as of June 30) | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Non-performing assets to total assets | 0.99% | 0.00% | | Non-accrual loans to total gross loans | 1.15% | 0.00% | | Allowance for credit losses on loans to total gross loans | 0.95% | 0.97% | | Net charge-offs to average gross loans (annualized for Q2) | 0.08% | 0.00% | [Capital Adequacy](index=8&type=section&id=Capital%20Adequacy) The bank maintained strong and stable regulatory capital ratios as of June 30, 2024, well above minimum requirements, with a Total risk-based capital ratio of 16.78% Regulatory Capital Ratios (Bank only, as of June 30) | Ratio | 2024 (Preliminary) | 2023 | | :--- | :--- | :--- | | Total risk-based capital ratio | 16.78% | 16.79% | | Tier 1 risk-based capital ratio | 15.85% | 15.83% | | Leverage ratio | 14.22% | 14.81% | | Common equity tier 1 ratio | 15.85% | 15.83% | [Appendix: Non-GAAP Financial Measures](index=10&type=section&id=Appendix%3A%20Non-GAAP%20Financial%20Measures) This appendix provides reconciliations of non-GAAP financial measures, including Net Interest Margin (FTE) and Tangible Book Value Per Common Share [Reconciliation of Non-GAAP Measures](index=10&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) This section provides reconciliations for non-GAAP financial measures to their most directly comparable GAAP counterparts, such as Net Interest Margin (FTE) and Tangible Book Value Per Common Share - The reconciliation adjusts GAAP net interest income for the tax-equivalent effect of income from tax-exempt securities to calculate Net Interest Margin (FTE)[29](index=29&type=chunk) - Tangible common stockholders' equity is derived by subtracting intangible assets and preferred stock from total stockholders' equity, used to calculate tangible book value per common share[29](index=29&type=chunk) Key Non-GAAP Reconciliations (as of June 30, 2024) | Metric | GAAP | Non-GAAP | | :--- | :--- | :--- | | Net Interest Margin (Q2) | 3.13% | 3.15% (FTE) | | Book Value per Common Share | $25.99 | $23.72 (Tangible) | | Total Stockholders' Equity | $224.7M | $180.2M (Tangible Common) |

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 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 ...