MainStreet Bancshares Reports First Quarter Performance

Fairfax, VA — MainStreet Bancshares (OTCQB: MNSB), the holding company for MainStreet Bank, reports net income of $1.03 million for the first quarter of 2017, which is 18% higher than first quarter 2016 net income of $914 thousand. Note: first quarter 2017 numbers include $241 thousand of interest expense for newly issued subordinated debt. Earnings per share for the first quarter 2017 were $0.24 versus $0.22 for first quarter 2016.

Net interest income of $4.7 million for first quarter 2017 improved $262 thousand over net interest income for first quarter 2016. The first quarter 2017 net interest margin is 3.75% compared with 3.84% for the first quarter of 2016.

Non-interest income is up 200% for first quarter 2017 versus 2016. Non-interest income (no securities gains) is $647 thousand in 2017 compared to $216 thousand (net of securities gains) for 2016. This increase is attributable to the new payment systems group, increased fee income on deposit accounts and income attributable to bank-owned life insurance.

Non-interest expense for first quarter 2017 is $3.7 million compared to $3.3 million for first quarter 2016. This is primarily due to an increase in employees and salaries in support of balance sheet growth. The efficiency ratio held steady at 69% for the first quarter of 2017 compared to 70% for first quarter 2016.
The Company’s March 31, 2017 balance sheet experienced a temporary decline of 1.29% from year-end totals. MainStreet President Chris Brockett indicated that, “this is not indicative of expected future performance as MainStreet anticipates good growth year-on-year. The loans-in-process pipeline is currently very robust and balance sheet metrics should be back on-track at the time of second quarter reporting.” Asset quality is strong, as non-performing loans represent an infinitesimal two basis points of total gross loans on March 31, 2017.

Total deposits as of March 31, 2017 were $464 million. Non-interest deposits represent 25% of total deposits.

The book value per common share is $11.09 as of March 31, 2017. According to OTC Markets, the share price closed on March 31, 2017 at $16.55 per common share, or 149% of book value. During the first quarter there were 328 trades for a total volume of 309,699 common shares totaling $5.1 million.

“We have a good year of growth and opportunity in front of us.” says Jeff W. Dick, Chairman and CEO of MainStreet Bancshares, Inc. and MainStreet Bank. “Our earnings are strong and the local market is robust. Two well-respected local community banks were recently acquired by larger institutions, which provides opportunities for MainStreet for new customers as well as new employees who prefer the local community bank model.”

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 has 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 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. 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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