MainStreet Bank Reports Record Third Quarter Performance

Fairfax, VA – MainStreet Bancshares, Inc. (OTCQB: MNSB), the holding company for MainStreet Bank, nearly tripled its third quarter 2016 earnings over the third quarter 2015. Net income of $2.8 million through September 30, 2016 was more than double the level of net income through September 30, 2015. Earnings per share for the nine months ended September 30, 2016 is $0.66 versus $0.29 for the same nine month period in 2015.

Net Interest income of $13.67 million reported for September 30, 2016 improved $2.4 million over net interest income from September 30, 2015. The net interest margin through September 30, 2016 is 3.79%.

Non-interest income (net of securities gains) is $1.1 million through September 30, 2016 compared to $791 thousand for the same period in 2015, a 36% improvement. Non-interest expense through September 30, 2016 is $10.5 million compared to $9.1 million for the same period in 2015. The increase is primarily in salaries supporting ongoing growth and expansion.

MainStreet’s balance sheet improved 11% from third quarter 2015 with total assets of $536 million against total assets of $481 million respectively.

Net loans outstanding at September 30, 2016 total $441 million against net loans outstanding at September 30, 2015 of $389 million, an increase of $52 million or 13.4%. Asset quality remains very strong, as nonperforming loans represent a mere nine basis points of total gross loans on September 30, 2016.

Non-interest bearing deposits increased to $114 million as of September 30, 2016, up 57% from September 30, 2015. Non-interest bearing deposits represent 26% of total deposits at September 30, 2016. Time deposits are down $5 million from the prior period. Total deposits as of September 30, 2016 were $447 million, an increase of $59 million from September 30, 2015.

The share price closed on September 30, 2016 at $12.60 per share. During the third quarter of 2016, there were 133 trades for a total of 177,018 shares with a dollar value of $2,165,731. The high share price for the third quarter of 2016 was $12.75 per share.

QUOTES: “We are seeing a very positive and consistent trend in earnings performance.” says Jeff W. Dick, Chairman, CEO and President of MainStreet Bank. “Likewise, we have seen a significantly improved level of non-interest bearing deposit account balances. MainStreet is focused on achieving strong balance sheet growth funded by low-cost deposits. We are currently managing $6.7 million in assets per employee, with a goal to improve that number to $8.8 million in assets per employee. That improvement, combined with continuous improvement in fee income for all areas, including the recently established payment systems group, will help us to achieve superior returns.”

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 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 750 businesses in the Metropolitan area.

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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