TainStreetBanK & MainStreetBancshares, Inc. MainStreet Bancshares, Inc > MainStreetBanK 2022 Third-Quarter Update ain Street Bancsnare October 2022 > MainStreetBancshares,Inc. Safe harbor 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 performance and results of MainStreet Bancshares, ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 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) For the quarterly period ended June 30, 2022 Virginia 81-2871064 (State or Other ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 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) (State or Other Jurisdiction of Inc ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO Commission File Number 001-38817 MainStreet Bancshares, Inc. financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☒ Indicate b ...

PART I – FINANCIAL INFORMATION [Consolidated Financial Statements](index=3&type=section&id=Item%201%20%E2%80%93%20Consolidated%20Financial%20Statements) MainStreet Bancshares, Inc.'s unaudited consolidated financial statements for periods ending September 30, 2021, provide a snapshot of the company's financial health and performance [Notes to Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Detailed notes supporting the consolidated financial statements cover accounting policies, financial statement line items, and key developments like the establishment of a community development entity and a Banking as a Service (BaaS) division - On **October 12, 2021**, the Company became a financial holding company to engage in nonbanking activities, also establishing MainStreet Community Capital, LLC in **August 2021** as a community development entity and introducing **AvenuTM**, a **Banking as a Service (BaaS)** division, on **October 25, 2021**[19](index=19&type=chunk)[22](index=22&type=chunk)[23](index=23&type=chunk) - The company is preparing for the adoption of **ASU 2016-13 (CECL)**, which becomes effective after **December 15, 2022**, with a committee working with a third party to develop and test models[33](index=33&type=chunk) - As of **September 30, 2021**, Commercial & Industrial loans included **$88.5 million** in **Paycheck Protection Program (PPP) loans**[51](index=51&type=chunk) - The company had **no Troubled Debt Restructurings (TDRs)** as of **September 30, 2021**, or **December 31, 2020**[66](index=66&type=chunk) Loan Portfolio Composition (September 30, 2021) | Loan Category | Amount (in thousands) | | :--- | :--- | | Commercial Real Estate | $494,766 | | Construction and Land Development | $327,004 | | Residential Real Estate | $223,029 | | Commercial & Industrial | $191,281 | | Consumer | $27,740 | | **Total Gross Loans** | **$1,263,820** | Consolidated Statement of Financial Condition Highlights | Metric | At September 30, 2021 (unaudited) | At December 31, 2020 | | :--- | :--- | :--- | | Total Assets | $1,657,199 thousand | $1,643,165 thousand | | Total Loans, net | $1,246,331 thousand | $1,230,379 thousand | | Total Deposits | $1,414,366 thousand | $1,438,246 thousand | | Total Liabilities | $1,473,170 thousand | $1,475,500 thousand | | Total Stockholders' Equity | $184,029 thousand | $167,665 thousand | Consolidated Statement of Income Highlights | Metric | Three Months Ended Sep 30, 2021 | Three Months Ended Sep 30, 2020 | Nine Months Ended Sep 30, 2021 | Nine Months Ended Sep 30, 2020 | | :--- | :--- | :--- | :--- | :--- | | Net Interest Income | $13,203 thousand | $11,886 thousand | $39,669 thousand | $32,912 thousand | | Net Income | $4,783 thousand | $5,172 thousand | $17,358 thousand | $8,008 thousand | | Diluted EPS | $0.56 | $0.63 | $2.09 | $0.97 | Consolidated Statement of Cash Flows Highlights (Nine Months Ended Sep 30) | Cash Flow Activity | 2021 (in thousands) | 2020 (in thousands) | | :--- | :--- | :--- | | Net cash provided by operating activities | $56,370 | $11,788 | | Net cash used in investing activities | ($30,321) | ($281,037) | | Net cash provided by financing activities | $140 | $331,959 | | Increase in Cash and Cash Equivalents | $26,189 | $62,710 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%202%20%E2%80%93%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management's discussion analyzes the company's financial condition and results of operations, including performance drivers, balance sheet, liquidity, capital resources, and the impact of COVID-19 and new business initiatives - The company is focusing on **organic growth** by serving **small to medium-sized businesses** in the Northern Virginia and Washington, D.C. metropolitan area, leveraging technology and personalized service[105](index=105&type=chunk)[106](index=106&type=chunk)[107](index=107&type=chunk) - Strategic initiatives include becoming a **financial holding company** (Oct 2021), creating a **community development entity** (Aug 2021), and launching **AvenuTM**, a **Banking as a Service (BaaS)** division, to tap into Fintech markets for **low-cost deposits** and **fee income**[104](index=104&type=chunk)[112](index=112&type=chunk)[113](index=113&type=chunk) - The company continues to manage risks from the **COVID-19 pandemic**, including **credit, operational, and interest rate risks**, and originated an additional **572 PPP loans** totaling **$87.3 million** since the program's expansion in December 2020[116](index=116&type=chunk)[117](index=117&type=chunk)[118](index=118&type=chunk) [Comparison of Results of Operations (Q3 2021 vs. Q3 2020)](index=38&type=section&id=Comparison%20of%20Statements%20of%20Income%20for%20the%20Three%20Months%20Ended%20September%2030%2C%202021%20and%202020) Third quarter 2021 net income decreased to **$4.8 million** from **$5.2 million** in Q3 2020, primarily due to lower loan swap fee income despite increased net interest income and an improved net interest margin - The decrease in net income was primarily due to a **$1.9 million decline** in **fees from individual interest rate swaps** compared to the same period in 2020[133](index=133&type=chunk) - **Net interest margin increased to 3.28%** from 3.20% in Q3 2020, while the interest rate spread widened by **22 basis points** to **2.89%**[142](index=142&type=chunk)[145](index=145&type=chunk) Q3 2021 vs. Q3 2020 Performance | Metric | Q3 2021 (in millions) | Q3 2020 (in millions) | Change (in millions) | | :--- | :--- | :--- | :--- | | Net Income | $4.8 | $5.2 | ($0.4) | | Net Interest Income | $13.2 | $11.9 | +$1.3 | | Provision for Loan Losses | $0.29 | $0.64 | ($0.35) | | Non-Interest Income | $1.5 | $2.9 | ($1.4) | [Comparison of Results of Operations (Nine Months 2021 vs. 2020)](index=43&type=section&id=Comparison%20of%20Statements%20of%20Income%20for%20the%20Nine%20Months%20Ended%20September%2030%2C%202021%20and%202020) Net income for the nine months ended September 30, 2021, more than doubled to **$17.4 million**, driven by **$6.8 million** growth in net interest income and a favorable **$8.0 million** swing in the provision for loan losses - The provision for loan losses shifted from a **$6.6 million expense** in 2020 to a **$1.5 million recovery** in 2021, a **$8.0 million decrease**, attributed to the strong credit profile and reversal of special provisions[174](index=174&type=chunk) - Net interest income increased by **20.5%**, driven by growth in average interest-earning assets and a **29 basis point increase** in the interest rate spread to **2.90%**[166](index=166&type=chunk)[167](index=167&type=chunk) Nine Months 2021 vs. 2020 Performance | Metric | Nine Months 2021 (in millions) | Nine Months 2020 (in millions) | Change (in millions) | | :--- | :--- | :--- | :--- | | Net Income | $17.4 | $8.0 | +$9.4 | | Net Interest Income | $39.7 | $32.9 | +$6.8 | | Provision for Loan Losses | ($1.5) Recovery | $6.6 Provision | ($8.0) | | Non-Interest Income | $4.5 | $5.6 | ($1.1) | [Comparison of Financial Condition (Sep 30, 2021 vs. Dec 31, 2020)](index=49&type=section&id=Comparison%20of%20Statements%20of%20Financial%20Condition%20at%20September%2030%2C%202021%20and%20at%20December%2031%2C%202020) Total assets grew to **$1.7 billion** as of September 30, 2021, with net loans increasing by **$16.0 million**, while a strategic shift led to **$51.9 million** growth in core deposits despite an overall deposit decrease - A strategic shift in deposit mix occurred: core deposits increased by **$51.9 million**, driven by a **$104.7 million (28.2%)** increase in **non-interest bearing deposits**, while higher-cost money market and time deposits decreased[182](index=182&type=chunk) - The allowance for loan losses decreased to **$11.4 million** from **$12.9 million**, representing **0.90%** of gross loans (or **0.97%** excluding PPP loans)[181](index=181&type=chunk) Balance Sheet Changes (Sep 30, 2021 vs. Dec 31, 2020) | Account | Sep 30, 2021 (in millions) | Dec 31, 2020 (in millions) | Change (in millions) | | :--- | :--- | :--- | :--- | | Total Assets | $1,700.0 | $1,600.0 | +$14.0 | | Net Loans | $1,250.0 | $1,230.0 | +$16.0 | | Total Deposits | $1,410.0 | $1,440.0 | ($23.9) | | Nonperforming Assets | $1.2 | $1.3 | ($0.1) | [Liquidity and Capital Resources](index=52&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains a strong liquidity position with **$133.7 million** in cash and **$426.9 million** in unused FHLB borrowing capacity, while all regulatory capital ratios significantly exceed 'well capitalized' thresholds - As of **September 30, 2021**, the company had multiple sources of liquidity, including **$133.7 million** in cash and cash equivalents, **$171.6 million** in available-for-sale securities, and **$426.9 million** in **unused FHLB borrowing capacity**[185](index=185&type=chunk)[188](index=188&type=chunk) - Off-balance sheet commitments included **$278.0 million** in **outstanding loan commitments** and **$230,000** in **standby letters of credit** as of **September 30, 2021**[195](index=195&type=chunk) Regulatory Capital Ratios (Bank Level, Sep 30, 2021) | Ratio | Actual | Well Capitalized Requirement | | :--- | :--- | :--- | | Total Capital Ratio | 16.55% | > 10.0% | | Tier 1 Capital Ratio | 15.68% | > 8.0% | | Common Equity Tier 1 Ratio | 15.68% | > 8.0% | | Tier 1 Leverage Ratio | 12.23% | > 5.0% | [Quantitative and Qualitative Disclosures about Market Risk](index=56&type=section&id=Item%203%20%E2%80%93%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This disclosure is not required for smaller reporting companies - As a **smaller reporting company**, MainStreet Bancshares, Inc. is **not required** to provide this disclosure[201](index=201&type=chunk) [Controls and Procedures](index=56&type=section&id=Item%204%20%E2%80%93%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of September 30, 2021, with no material changes to internal control over financial reporting during the third quarter - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were **effective** as of **September 30, 2021**[201](index=201&type=chunk) - **No changes** occurred during the third fiscal quarter of 2021 that **materially affected**, or are reasonably likely to materially affect, the company's internal control over financial reporting[202](index=202&type=chunk) PART II – OTHER INFORMATION [Legal Proceedings](index=57&type=section&id=Item%201%20%E2%80%93%20Legal%20Proceedings) As of September 30, 2021, the company was not involved in any material pending legal proceedings beyond routine business matters - The company reports **no involvement** in pending legal proceedings other than routine matters considered **immaterial** to its financial condition and operations[203](index=203&type=chunk) [Risk Factors](index=57&type=section&id=Item%201A%20%E2%80%93%20Risk%20Factors) This section is not required for smaller reporting companies and refers to risk factors disclosed in the 2020 Form 10-K - This disclosure is **not required** for **smaller reporting companies**, with reference made to the 'Risk Factors' section in the company's **2020 Form 10-K**[204](index=204&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=57&type=section&id=Item%202%20%E2%80%93%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not repurchase any common shares during the three months ended September 30, 2021 - The Company **did not repurchase any common shares** during the third quarter of 2021[205](index=205&type=chunk) [Other Information](index=57&type=section&id=Item%205%20%E2%80%93%20Other%20Information) The company elected to become a financial holding company, providing increased flexibility for engaging in permissible nonbanking activities - The Company has elected to become a **financial holding company** to provide **increased flexibility** for engaging in **permissible nonbanking activities**[206](index=206&type=chunk) [Exhibits](index=58&type=section&id=Item%206%20%E2%80%93%20Exhibits) This section lists exhibits filed with the Form 10-Q, including CEO/CFO certifications and XBRL data files - The report includes standard filings such as **CEO/CFO certifications** and **XBRL instance documents** as exhibits[209](index=209&type=chunk)

PART I – FINANCIAL INFORMATION [Consolidated Financial Statements](index=3&type=section&id=Item%201%20%E2%80%93%20Consolidated%20Financial%20Statements) Presents the unaudited consolidated statements of financial condition, income, equity, and cash flows for the period ended June 30, 2021 Consolidated Statements of Financial Condition Highlights (in thousands) | Account | June 30, 2021 (unaudited) | December 31, 2020 | | :--- | :--- | :--- | | **Total Assets** | **$1,707,695** | **$1,643,165** | | Cash and cash equivalents | $176,285 | $107,528 | | Loans, net | $1,256,436 | $1,230,379 | | Total deposits | $1,464,932 | $1,438,246 | | **Total Liabilities** | **$1,528,067** | **$1,475,500** | | **Total Stockholders' Equity** | **$179,628** | **$167,665** | Consolidated Statements of Income Highlights (in thousands) | Account | Three Months Ended June 30, 2021 | Three Months Ended June 30, 2020 | Six Months Ended June 30, 2021 | Six Months Ended June 30, 2020 | | :--- | :--- | :--- | :--- | :--- | | Net Interest Income | $12,991 | $10,726 | $26,466 | $21,025 | | Provision for (Recovery of) Loan Losses | $(2,080) | $5,575 | $(1,760) | $5,925 | | **Net Income (Loss)** | **$7,126** | **$(634)** | **$12,575** | **$2,836** | | **Net Income (Loss) Available To Common Shareholders** | **$6,587** | **$(634)** | **$11,497** | **$2,836** | | Diluted EPS | $0.87 | $(0.08) | $1.53 | $0.34 | [Notes to Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Provides detailed explanations of accounting policies for key areas like securities, loans, derivatives, and fair value measurements [Note 1: Organization, Basis of Presentation and Accounting Pronouncements](index=8&type=section&id=Note%201.%20Organization%2C%20Basis%20of%20Presentation%20and%20Impact%20of%20Recently%20Issued%20Accounting%20Pronouncements) Details the company's status as an emerging growth company and its preparations for adopting the new CECL accounting standard - The company is an 'emerging growth company' and a 'smaller reporting company', which allows for reduced public company reporting requirements[18](index=18&type=chunk) - The company is preparing for the adoption of ASU 2016-13 (CECL) for fiscal years beginning after December 15, 2022, and is working with a third party to test parallel models[65](index=65&type=chunk) [Note 2: Investment Securities](index=20&type=section&id=Note%202.%20Investment%20Securities) Outlines the composition and valuation of the company's available-for-sale and held-to-maturity securities portfolios Investment Securities Portfolio (in thousands) | Category | June 30, 2021 (Fair Value) | December 31, 2020 (Fair Value) | | :--- | :--- | :--- | | **Available-for-Sale** | **$165,791** | **$147,414** | | U.S. Treasury Securities | $100,000 | $90,000 | | Collateralized Mortgage Backed | $26,873 | $24,896 | | Municipal Securities | $26,473 | $22,605 | | **Held-to-Maturity (Amortized Cost)** | **$26,136** | **$22,520** | - As of June 30, 2021, there were **unrealized losses of $788,000** in the available-for-sale portfolio, primarily attributed to changes in interest rates and not credit deterioration[77](index=77&type=chunk)[78](index=78&type=chunk) [Note 3: Loans Receivable](index=22&type=section&id=Note%203.%20Loans%20Receivable) Details the loan portfolio composition, allowance for loan losses, and credit quality metrics as of June 30, 2021 Loan Portfolio Composition (Gross Loans, in thousands) | Loan Type | June 30, 2021 | December 31, 2020 | | :--- | :--- | :--- | | Commercial Real Estate | $503,515 | $466,898 | | Construction and Land Development | $328,480 | $324,906 | | Commercial & Industrial | $218,414 | $230,027 | | Residential Real Estate | $190,426 | $183,216 | | Consumer – Non Real-Estate | $33,643 | $44,073 | | **Total Gross Loans** | **$1,274,478** | **$1,249,435** | - Commercial and industrial loans included **$124.6 million in Paycheck Protection Program (PPP) loans** at June 30, 2021, down from $135.2 million at December 31, 2020[81](index=81&type=chunk) Allowance for Loan Losses Activity (Six Months Ended June 30, 2021, in thousands) | Description | Amount | | :--- | :--- | | Beginning Balance (Dec 31, 2020) | $12,877 | | Charge-offs | $(4) | | Recoveries | $20 | | Provision (Recovery) | $(1,760) | | **Ending Balance (June 30, 2021)** | **$11,133** | - As of June 30, 2021, the company had **no loans classified as Troubled Debt Restructurings (TDRs)**[95](index=95&type=chunk) [Note 4: Derivatives and Risk Management](index=29&type=section&id=Note%204.%20Derivatives%20and%20Risk%20Management%20Activities) Describes the use of interest rate swaps to manage customer interest rate risk and the associated financial impact Interest Rate Swap Positions (in thousands) | Description | June 30, 2021 | December 31, 2020 | | :--- | :--- | :--- | | Notional Amount | $209,370 | $210,314 | | Fair Value (Asset/Liability) | $4,663 | $12,152 | - **No interest rate swap fee income** was recognized in the first six months of 2021, compared to $826,000 in the same period of 2020[98](index=98&type=chunk) [Note 5: Fair Value Presentation](index=29&type=section&id=Note%205.%20Fair%20Value%20Presentation) Explains the three-level hierarchy used for fair value measurements of assets and liabilities - All assets and liabilities measured at fair value on a recurring basis, totaling **$170.5 million in assets and $4.7 million in liabilities**, are classified as Level 2[106](index=106&type=chunk) - Assets measured at fair value on a nonrecurring basis, including impaired loans and OREO, totaled **$2.0 million** and are classified as Level 3[111](index=111&type=chunk) [Note 6: Earnings Per Common Share](index=34&type=section&id=Note%206.%20Earnings%20Per%20Common%20Share) Presents the calculation of basic and diluted earnings per common share for the reported periods Earnings Per Share Calculation | Metric | Three Months Ended June 30, 2021 | Six Months Ended June 30, 2021 | | :--- | :--- | :--- | | Net income available to common shareholders | $6,587,000 | $11,497,000 | | Weighted average shares (basic & diluted) | 7,546,452 | 7,535,061 | | **Basic and Diluted EPS** | **$0.87** | **$1.53** | [Note 8: Leases](index=34&type=section&id=Note%208.%20Leases) Details the company's operating lease agreements, associated assets and liabilities, and recent lease activities Lease Balances (as of June 30, 2021, in thousands) | Item | Value | | :--- | :--- | | Right-of-use assets | $7,347 | | Lease liabilities | $7,806 | | Weighted-average remaining lease term | 178.0 months | | Weighted-average discount rate | 2.81% | - The company entered into a new operating lease for an operations center during the first six months of 2021[126](index=126&type=chunk) - The branch located at 4029 Chain Bridge Rd in Fairfax City is scheduled to close on August 27, 2021[128](index=128&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=35&type=section&id=Item%202%20%E2%80%93%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, balance sheet changes, liquidity, and capital, highlighting strong income growth and a well-capitalized position [COVID-19 Pandemic Impact](index=38&type=section&id=COVID-19%20Pandemic) Management discusses ongoing risks and responsive actions related to the COVID-19 pandemic, including participation in the PPP - The company actively participated in the expanded Paycheck Protection Program (PPP), originating **572 additional loans totaling $87.3 million** since December 2020[144](index=144&type=chunk) - Management acknowledges ongoing risks from the pandemic, including potential impacts on credit quality, collateral values, and operational continuity[141](index=141&type=chunk)[147](index=147&type=chunk)[149](index=149&type=chunk) [Results of Operations: Three Months Ended June 30, 2021 vs. 2020](index=42&type=section&id=Comparison%20of%20Statements%20of%20Income%20for%20the%20Three%20Months%20Ended%20June%2030%2C%202021%20and%202020) Q2 2021 net income improved significantly, driven by a large recovery of loan loss provisions and higher net interest income Q2 2021 vs Q2 2020 Performance (in thousands) | Metric | Q2 2021 | Q2 2020 | Change | | :--- | :--- | :--- | :--- | | Net Income (Loss) | $7,126 | $(634) | $7,760 | | Net Interest Income | $12,991 | $10,726 | $2,265 | | Provision for (Recovery of) Loan Losses | $(2,080) | $5,575 | $(7,655) | | Non-Interest Income | $1,555 | $1,318 | $237 | | Non-Interest Expense | $7,873 | $7,360 | $513 | - The significant improvement in profitability was largely due to a **recovery of loan loss provision of $2.1 million** in Q2 2021, compared to a $5.6 million provision expense in Q2 2020[159](index=159&type=chunk)[178](index=178&type=chunk) - **Net interest margin increased to 3.18%** in Q2 2021 from 3.05% in Q2 2020[168](index=168&type=chunk) [Results of Operations: Six Months Ended June 30, 2021 vs. 2020](index=48&type=section&id=Comparison%20of%20Statements%20of%20Income%20for%20the%20Six%20Months%20Ended%20June%2030%2C%202021%20and%202020) H1 2021 net income rose sharply due to a significant recovery of loan loss provisions and growth in net interest income H1 2021 vs H1 2020 Performance (in thousands) | Metric | H1 2021 | H1 2020 | Change | | :--- | :--- | :--- | :--- | | Net Income | $12,575 | $2,836 | $9,739 | | Net Interest Income | $26,466 | $21,025 | $5,441 | | Provision for (Recovery of) Loan Losses | $(1,760) | $5,925 | $(7,685) | | Non-Interest Income | $3,001 | $2,732 | $269 | | Non-Interest Expense | $15,683 | $14,502 | $1,181 | - The provision for loan losses was a **recovery of $1.8 million** for the first half of 2021, compared to an expense of $5.9 million in the prior-year period[199](index=199&type=chunk) - Net interest income grew due to a **$280.3 million increase in average interest-earning assets**, which offset a 51 basis point decline in the average yield[183](index=183&type=chunk)[184](index=184&type=chunk) [Financial Condition: June 30, 2021 vs. December 31, 2020](index=54&type=section&id=Comparison%20of%20Statements%20of%20Financial%20Condition%20at%20June%2030%2C%202021%20and%20at%20December%2031%2C%202020) Total assets grew to $1.71 billion, driven by increases in cash and loans, while deposits shifted to lower-cost accounts Balance Sheet Changes (in millions) | Account | June 30, 2021 | Dec 31, 2020 | Change | | :--- | :--- | :--- | :--- | | Total Assets | $1,707.7 | $1,643.2 | $64.5 | | Net Loans | $1,256.4 | $1,230.4 | $26.0 | | Total Deposits | $1,464.9 | $1,438.2 | $26.7 | | Nonperforming Assets | $1.2 | $1.3 | $(0.1) | - **Non-interest bearing demand deposits increased by $115.5 million (31.2%)**, while money market deposits decreased by $116.3 million (27.3%)[208](index=208&type=chunk) - The **allowance for loan losses to gross loans (excluding PPP loans) was 0.97%**, down from 1.16% at year-end 2020[207](index=207&type=chunk) [Liquidity and Capital Resources](index=56&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains a strong liquidity position and remains 'well capitalized' under all regulatory guidelines - The company has significant available liquidity, including **$176.3 million in cash** and **$435.9 million in unused FHLB borrowing capacity**[210](index=210&type=chunk)[213](index=213&type=chunk) Bank Regulatory Capital Ratios (as of June 30, 2021) | Ratio | Actual | 'Well Capitalized' Minimum | | :--- | :--- | :--- | | Total capital to risk-weighted assets | 16.25% | > 10.0% | | Common equity tier 1 capital to risk-weighted assets | 15.40% | > 8.0% | | Tier 1 capital to risk-weighted assets | 15.40% | > 8.0% | | Tier 1 capital to average assets | 11.78% | > 5.0% | [Quantitative and Qualitative Disclosures about Market Risk](index=60&type=section&id=Item%203%20%E2%80%93%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section is not required for smaller reporting companies, and therefore no information is provided - Disclosure is not required for smaller reporting companies[228](index=228&type=chunk) [Controls and Procedures](index=60&type=section&id=Item%204%20%E2%80%93%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal controls - The CEO and CFO concluded that the company's **disclosure controls and procedures were effective** as of June 30, 2021[228](index=228&type=chunk) - **No material changes** in internal control over financial reporting occurred during Q2 2021[229](index=229&type=chunk) PART II – OTHER INFORMATION [Legal Proceedings](index=61&type=section&id=Item%201%20%E2%80%93%20Legal%20Proceedings) The company was not involved in any material legal proceedings outside of the ordinary course of business - The Company was not involved in any pending legal proceedings other than routine matters considered immaterial in the aggregate[231](index=231&type=chunk) [Risk Factors](index=61&type=section&id=Item%201A%20%E2%80%93%20Risk%20Factors) This section is not required for smaller reporting companies and refers to the company's most recent Form 10-K - Disclosure is not required for smaller reporting companies and the report references the Form 10-K filed on March 23, 2021 for risk factors[232](index=232&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=61&type=section&id=Item%202%20%E2%80%93%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not repurchase any of its common shares during the second quarter of 2021 - The Company did not repurchase any common shares during the second quarter of 2021[233](index=233&type=chunk) [Exhibits](index=62&type=section&id=Item%206%20%E2%80%93%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including certifications and XBRL data files - Exhibits filed include CEO and CFO certifications and financial statements formatted in Inline XBRL[236](index=236&type=chunk) Signatures

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2021 (Exact Name of Registrant as Specified in Its Charter) (State or Other Jurisdiction of Incorporation or Organization) 10089 Fairfax Boulevard, Fairfax, VA 22030 (Address of Principal Executive Offices and Zip Code) (703) 481-4567 (Registrant's Telephone Number, Including Area Code) ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO Commission File Number 001-38817 MainStreet Bancshares, Inc. (Exact name of Registrant as specified in its Charter) | Virginia | 81-2871064 | | --- | --- | | ( ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to to (State or Other Jurisdiction of Incorporation or Organization) Commission file number: 001-38817 10089 Fairfax Boulevard, Fairfax, VA 22030 (Address ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2020 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) (State or Other Jurisdiction of Inco ...