MainStreet Bancshares, Inc. Reports Record 2016 Performance

Fairfax, VA – MainStreet Bancshares, Inc. (OTCQB: MNSB), the holding company for MainStreet Bank, reported record performance for the Bank’s year-end 2016 earnings. Net income of $3.9 million for 2016 was 77% higher than 2015 net income of $2.2 million. Earnings per share for year-end 2016 is $0.91 versus $0.51 for 2015.

Net Interest income of $18.5 million for 2016 improved $2.9 million over net interest income for 2015. The net interest margin for 2016 held strong at 3.78% compared to 3.96% for 2015, only a 4.5% decline, due mainly to continued industry interest rate compression.

Non-interest income increased 45% for the year. Non-interest income (no securities gains) was $1.53 million for 2016 compared to $1.05 million (net of securities gains) for 2015. This increase is attributable primarily to the new payment systems group and secondarily to increased fee income on deposit accounts.

Non-interest expense for 2016 was $13.9 million compared to $12.4 million for 2015. This is primarily due to an increase in salaries in support of balance sheet growth. The efficiency ratio continues to show marked improvement, trending down to 69% for 2016 compared to 73% for 2015. The efficiency ratio continues to improve each month for the Bank.

MainStreet Bancshares’s balance sheet grew 20% to $576 million during 2016, against December 2015 total assets of $478 million.

Net loans outstanding at year-end 2016 total $464 million against net loans outstanding at year-end 2015 of $398 million, an increase of $66 million, or a nearly 17% improvement. Asset quality remains very strong. Nonperforming loans were a mere four basis points of total gross loans on December 31, 2016.

Non-interest bearing deposits increased to $107.7 million as of year-end 2016, with another $41.6 million of very low cost deposits. This is up substantially from the balance of $68.4 million of no-cost deposits carried at year-end 2015. Non-interest deposits represent 23% of total deposits and very low cost deposits represent another 8.8% of total deposits. Total deposits as of year-end 2016 were $475.2 million an increase of $89.6 million from year-end 2015 deposits of $385.6 million.

MainStreet Bancshares successfully issued $14.3 million in Subordinated Debt as of December 31, 2016. The holding company immediately down streamed $12.5 million to the Bank which is treated as Tier one capital. This capital will be used for general corporate purposes to and support the future growth of the Bank.

The book value per common share was $10.85 as of December 31, 2016. According to OTC Markets, the share price closed on December 31, 2016 at $14.20 per share, or 131% of book value. During 2016, there were 753 trades totaling 987,141 shares with a dollar value of $12,131,702. The high share price for 2016 was $14.20 and the low was $11.02 per share. The mean price was $12.30 and the median was $12.20.

QUOTES: “We had another great year of growth and opportunity,” says Jeff W. Dick, Chairman and CEO of MainStreet Bank. “We experienced a significant improvement in non-or-low interest bearing deposit account balances, which aid greatly in funding our balance sheet growth. We continue to make headway in our assets per employee, which is a direct correlation to efficiency. This continuous improvement, combined with the improvements made in fee income and other revenue streams, will make MainStreet an even stronger and higher performing community bank going forward.”

Chris Brockett, MainStreet Bank President added, “I spent several months evaluating the local banking market and the various institutions within it. I couldn’t be more pleased to be a part of MainStreet Bank – especially with where we are today. The current momentum of the Bank, the additional capital, and the market disruption created by mergers should allow us to further bolster growth and profitability.”

ABOUT MAINSTREET BANK: MainStreet operates five branches in Herndon, Fairfax, Fairfax City, McLean 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 literally “put our bank” in well over 800 businesses in the Metropolitan area.

MainStreet also offers a full complement of payment system services for third party payment providers. MainStreet has a nationally known and leading market expert on-staff ready to help payment providers create a solution perfect for their needs.

MainStreet offers a full complement 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. Additionally, MainStreet released Aircharity® in 2012. Aircharity® is a unique solution that empowers people and organizations to raise money via email, websites and social media. The product allows a customer to open an account and accept donations from debit cards, credit cards and electronic checks.

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

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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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