During the quarter the Company executed a buyback of 273,448 shares, and the book value per common share ended the quarter at $25.63. The Company and Bank remain strongly capitalized.
"Our team's disciplined execution continues to drive value for our shareholders. With robust liquidity and a growing book value, we leveraged our share buyback program to take advantage of accretive opportunities in the market. At the same time, we remain focused on delivering strong and sustainable earnings growth," said Jeff W. Dick, Chairman and CEO of MainStreet Bancshares, Inc. and MainStreet Bank.
"We continue to replace higher cost funds with lower cost deposits which is a key driver of our expanding net interest margin," said Alex Vari, CFO of MainStreet Bancshares, Inc. and MainStreet Bank. "We've seen our eighth straight quarter with improvement in our total cost of deposits. This is a testament to our diligence in structuring noncore deposits while our business bankers maintain and grow valuable relationships within our community. Total core funding is $1.4 billion and total deposits grew to over $1.9 billion."
"Net loans increased for the quarter to $1.85 billion resulting in a well-managed 98% loan-to-deposit ratio. We're pleased to have grown our owner-occupied commercial real estate book by $79 million year-over-year. Our owner-occupied relationships also bring good deposit balances, which helps to maximize the value of our customer relationships," said Tom Floyd, Chief Lending Officer of MainStreet Bank.
Nonperforming assets as a percentage of total assets settled at 2.47% while loans 30-89 days past due and accruing improved to 0.95%. In response, Chris Johnston, Chief Credit Officer of MainStreet Bank, added, "We have a strong credit culture and a comprehensive underwriting process. The loans we are currently working to resolve are secured by properly leveraged real estate with personal guarantees. Our primary objective is to work with borrowers to resolve loans that have elevated risk without exposing the Bank to a loss of principal. Our team's track record on resolutions is strong, with a total accumulated principal loss of less-than $10 million over the entire 22-year history for the commercial loan portfolio."
About MainStreet Bank: MainStreet operates seven branches in Herndon, Fairfax, McLean, Leesburg, Middleburg, Clarendon, and Washington, D.C. MainStreet Bank has over 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 thousands of businesses in the metropolitan area.
MainStreet Bank 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 sophisticated cash management to enhanced mobile banking and instant-issue Debit cards, MainStreet Bank is always looking for ways to improve our customer's experience.
MainStreet Bank was the first community bank in the Washington, D.C., 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.
This release contains forward-looking statements, including our expectations with respect to future events that are subject to various risks and uncertainties. The statements contained in this release that are not historical facts are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Words such as "may," "will," "could," "should," "expect," "plan," "project," "intend," "anticipate," "believe," "estimate," "predict," "potential," "pursuant," "target," "continue," and similar expressions are intended to identify such forward-looking statements. 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, future impacts of pandemic outbreaks, maintenance and development of well-established and valued client relationships and referral source relationships, and acquisition or loss of key production personnel. 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.
UNAUDITED CONSOLIDATED BALANCE SHEET INFORMATION(In thousands)
March 31, 2026
December 31, 2025*
September 30, 2025
June 30, 2025
March 31, 2025
ASSETS
Cash and due from banks
$
33,044
$
25,179
$
23,940
$
20,888
$
18,384
Interest-bearing deposits at other financial institutions
783
1,276
1,315
864
735
Federal funds sold
134,288
136,301
102,039
111,532
183,521
Total cash and cash equivalents
168,115
162,756
127,294
133,284
202,640
Investment securities available for sale (AFS), at fair value
57,021
57,954
58,338
56,138
55,935
Investment securities held to maturity (HTM), at amortized cost, net of allowance for credit losses of $0 for all periods
13,790
13,798
14,293
14,846
15,657
Restricted securities, at amortized cost
6,998
7,005
7,005
7,005
7,005
Loans, net of allowance for credit losses of $19,049, $19,308, $18,831, $19,057, and $19,460, respectively
1,850,961
1,841,833
1,788,243
1,767,432
1,811,789
Premises and equipment, net
13,430
13,608
13,212
13,344
13,020
Other real estate owned, net
1,094
1,697
—
—
—
Property held for sale, at fair value
2,745
2,728
3,225
3,225
—
Accrued interest and other receivables
13,453
14,518
13,622
15,023
9,607
Bank owned life insurance
41,071
40,752
40,433
40,117
39,809
Other assets
54,615
56,020
59,124
64,367
67,383
Total Assets
$
2,223,293
$
2,212,669
$
2,124,789
$
2,114,781
$
2,222,845
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Non-interest bearing deposits
$
359,113
$
378,694
$
324,717
$
330,045
$
345,319
Interest-bearing demand deposits
120,700
119,407
123,231
124,090
106,033
Savings and NOW deposits
138,667
121,905
125,214
116,069
124,049
Money market deposits
545,804
499,334
458,946
463,904
511,925
Time deposits
750,441
779,844
778,727
764,439
820,999
Total deposits
1,914,725
1,899,184
1,810,835
1,798,547
1,908,325
Subordinated debt, net
70,035
69,936
69,837
71,238
72,138
Other liabilities
23,549
24,958
25,754
31,526
32,764
Total Liabilities
2,008,309
1,994,078
1,906,426
1,901,311
2,013,227
Stockholders' Equity:
Preferred stock
27,263
27,263
27,263
27,263
27,263
Common stock
28,247
29,008
29,833
29,825
29,810
Capital surplus
61,045
66,531
68,895
68,261
67,612
Retained earnings
104,360
101,557
98,793
95,585
92,305
Accumulated other comprehensive loss
(5,931
)
(5,768
)
(6,421
)
(7,464
)
(7,372
)
Total Stockholders' Equity
214,984
218,591
218,363
213,470
209,618
Total Liabilities and Stockholders' Equity
$
2,223,293
$
2,212,669
$
2,124,789
$
2,114,781
$
2,222,845
*Derived from audited financial statements
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME INFORMATION(In thousands, except share and per share data)
Three Months Ended
March 31, 2026
December 31, 2025
September 30, 2025
June 30, 2025
March 31, 2025
INTEREST INCOME:
Interest and fees on loans
$
29,518
$
29,969
$
30,688
$
32,443
$
31,111
Interest on investment securities
Taxable securities
418
421
435
431
420
Tax-exempt securities
287
276
270
267
263
Interest on interest-bearing deposits at other financial institutions
10
10
11
10
22
Interest on federal funds sold
985
1,198
1,060
1,135
1,147
Total interest income
31,218
31,874
32,464
34,286
32,963
INTEREST EXPENSE:
Interest on interest-bearing demand deposits
890
1,064
1,071
1,004
1,048
Interest on savings and NOW deposits
389
390
467
391
221
Interest on money market deposits
3,991
4,246
4,623
4,707
5,276
Interest on time deposits
7,650
8,244
8,369
8,595
9,031
Interest on federal funds purchased
25
—
28
—
65
Interest on subordinated debt
779
788
804
799
812
Total interest expense
13,724
14,732
15,362
15,496
16,453
Net interest income
17,494
17,142
17,102
18,790
16,510
Provision for credit losses
(131
)
