MainStreet Bancshares, Inc. Reports Good Earnings Trend

Fairfax, Va., Jan. 23, 2019 – Mainstreet Bancshares, Inc. (OTCQX: MNSB) (the “Company”) reported a strong quarter-on- quarter earnings trend. Fully adjusted earnings per share for both common and diluted shares was $0.45 for the fourth quarter of 2018, compared to $0.14 for both common and diluted shares for the same period in 2017. For the three months ended December 31, 2018 the Company produced a 1.36% return on average assets and 12.15% on average equity, compared to 0.41% and 4.76% consecutively for the fourth quarter of 2017.

The Company reported net income of $9.2 million for year-end December 31, 2018, an increase of 137.2%, as compared to net income of $3.9 million for year-end December 31, 2017. Fully adjusted earnings per share for both common and diluted shares was $1.38 during the twelve months of 2018, compared to $0.81 for fully adjusted common and diluted shares for the same period in 2017. For year-end December 31, 2018 the Company produced a 0.97% return on average assets and 10.38% on average equity, compared to 0.60% and 7.45% consecutively for year-end 2017.

Net interest income, the Company’s primary source of revenue, was $8.9 million for the fourth quarter of 2018, up 45.1% from $6.2 million for the same period in 2017. The net interest margin was 3.41% for year-end December 31, 2018 as compared to the 3.48% for year-end December 31, 2017.

Loan loss provisions of $3.1 million were necessary to balance the strong net loan growth for 2018. Asset quality remains solid with non-performing assets to total assets at 0.18% as of December 31, 2018, down from 0.25% as of December 31, 2017. Net charge-offs decreased $159,000 from December 31, 2017 to $1,000 for year-end December 31, 2018.

Fee income of $3.2 million was up 42% from December 31, 2017, due primarily to an increase in deposit account and third party payment service fees, and interest rate swap fees related to loan transactions. Both sources are expected to continue in a directionally consistent manner going forward.

Total assets were $1.1 billion at December 31, 2018, as compared to $808.0 million at December 31, 2017, an increase of 36.2%. Capital levels for the Company remain strong.

As of December 31, 2018, the Company’s fully adjusted tangible book value per share was $14.83, up 18.0% from $12.57 as of December 31, 2017. According to OTCQX, there were 384 trades during the quarter for a total of 181,807 shares traded or $3,464,197. The closing share price was $17.06, for a market cap of $139.5 million
QUOTES: “We were very excited to achieve a 1.05% Return on Average Assets at the Bank level for 2018 and 0.97% at the Company level,” says Chris Brockett, President of MainStreet Bancshares, Inc. and MainStreet Bank. The Leesburg branch had a great first year of deposit growth. Loan opportunities remain strong and we continue to expand the Business Banking Team in our efforts to grow relationships and core deposits.”

“We focused on improving fee income in order to close the gap on earnings,” says Jeff W. Dick, Chairman and CEO of MainStreet Bancshares, Inc. and MainStreet Bank. “In addition, our earning assets are responding well to the increasing interest rate environment. A key focus going forward is to replace marginal cost wholesale deposits with core deposits in order to improve the net interest margin.”

ABOUT MAINSTREET BANK: MainStreet operates six branches in Herndon, Fairfax, Fairfax City, McLean, Leesburg and Clarendon. In addition, MainStreet has 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 well over 1,000 businesses in the Metropolitan area.

MainStreet has a full complement of payment system services for third party payment providers. MainStreet has a nationally known market leader and a highly experienced team ready to help payment providers create a solution perfect for their needs.

MainStreet 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 mobile banking and Apple Pay to instant-issue Debit Cards, MainStreet Bank is always looking for ways to improve its customer experience.

MainStreet Bank was the first community bank in the Washington, DC 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

This release contains forward-looking statements, including our expectations with respect to future events that are subject to various risks and uncertainties. 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, maintenance and development of well-established and valued client relationships and referral source relationships, and acquisition or loss of key production personnel. Other risks that can affect the Bank are detailed from time to time in our annual reports. 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.

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