MainStreet Bancshares Reports Strong First Quarter

Fairfax, VA – MainStreet Bancshares, Inc. (OTCQX: MNSB), the holding company for MainStreet Bank, reports net income of $1.69 million for the first quarter of 2018, which is 64% higher than first quarter 2017 net income of $1.03 million. Earnings per share for the first quarter 2017 were $0.30 versus $0.24 for first quarter 2017.

Net interest income of $6.78 million for the first quarter of 2018 exceeds the first quarter of 2017 by $2.05 million. The first quarter 2018 net interest margin fell four basis points to 3.57% against the first quarter of 2017.

Non-interest income excluding securities gains is down 21% for first quarter 2018 versus 2017 for two key reasons: 1) a decline in mortgage originations for the first quarter of 2018, and 2) a sizeable loan prepayment penalty earned in the first quarter of 2017.

Non-interest expense for the first quarter of 2018 is $4.6 million compared to $3.7 million for the first quarter of 2017. This is primarily due to an increase in employees and salaries in support of balance sheet growth. The efficiency ratio improved to 62.9% for the first quarter of 2018 compared to 69.4% for first quarter 2017.

MainStreet Bancshares’s balance sheet grew 48% to $844 million for first quarter 2018 versus first quarter 2017. Net loans at March 31, 2018 total $703 million against net loans outstanding at March 31, 2018 of $462 million, an increase of 52%. Asset quality remains very strong with nonperforming loans at 0.27% of total gross loans on March 31, 2018.

Non-interest-bearing deposits increased to $165 million as of March 31, 2018, a 45% increase from March 31, 2017. Non-interest-bearing deposits represent 24% of total deposits at March 31, 2018. Total deposits as of March 31, 2018 were $691 million an increase of $227 million from March 31, 2017.

The book value per common share is $12.75 as of March 31, 2018. According to OTC Markets, the share price closed the quarter at $20.95 per common share, or 164% of book value. During the first quarter there were 362 trades for a total volume of 228,161 common shares totaling $4.3 million.

QUOTES: “2018 is off to a good start,” says Jeff W. Dick, Chairman and CEO of MainStreet Bancshares, Inc. and MainStreet Bank. “Our growth is coming from relationships with customers who expect excellent service; and our team consistently delivers.”

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 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.

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 mstreetbank.com.

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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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