8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): Date: July 24, 2023

MainStreet Bancshares, Inc.

(Exact name of Registrant as Specified in Its Charter)

Virginia	001-38817	81-2871064
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)
10089 Fairfax Boulevard, Fairfax, VA		22030
(Address of Principal Executive Offices)		(Zip Code)

(703) 481-4567

(Registrant’s Telephone Number, Including Area Code)

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	MNSB	The Nasdaq Stock Market LLC
Depositary Shares (each representing a 1/40th interest in a share of 7.50% Series A Fixed-Rate Non-Cumulative Perpetual Preferred Stock	MNSBP	The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company  ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☒

Item 2.02 Results of Operations and Financial Condition.

On July 24, 2023, MainStreet Bancshares, Inc. (the “Company”) issued a press release setting forth the Company’s second quarter and year-to-date ended June 30, 2023, unaudited financial results. A copy of the Company’s press release is attached hereto as Exhibit 99.1, is hereby incorporated by reference, and will be posted on the Company's website.

Item 7.01 Regulation FD Disclosure

On July 24, 2023, the Company made available an investor presentation analyzing its second quarter and year-to-date ended June 30, 2023, unaudited financial results. A copy of the Company’s investor presentation is attached hereto as Exhibit 99.2, is hereby incorporated by reference, and will be posted on the Company’s website.

The information furnished under Items 2.02, 7.01 and 9.01 of this Current Report on Form 8-K, including the exhibits, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, and it shall not be deemed incorporated by reference in any filing under the Exchange Act, or the Securities Act of 1933, as amended, except as expressly set forth by specific reference in such filing to this Form 8-K.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

Exhibit Number	Description
99.1	Press Release, dated July 24, 2023, with respect to the Company’s unaudited financial results for the second quarter and year-to-date ended June 30, 2023.
99.2	Investor Presentation dated July 24, 2023.
104	Cover Page Interactive Data File (embedded within the Inline XBRL document).

1

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	MAINSTREET BANCSHARES, INC
Date: July 24, 2023	By:	/s/ Thomas J. Chmelik
		Name: Thomas J. Chmelik
		Title: Chief Financial Officer

2

EX-99.1

Exhibit 99.1

PRESS RELEASE	Contact: Debra Cope
July 24, 2023, 8:00 AM ET	Director of Corporate Communications
	(703) 481-4599

MainStreet Bancshares, Inc., Reports Continued Strong Financial Performance for 2nd Quarter 2023

Net Interest Margin Continues to Outperform Most Peers

FAIRFAX, Va., July 24, 2023 /PRNewswire/ -- MainStreet Bancshares, Inc. (Nasdaq: MNSB & MNSBP), the holding company for MainStreet Bank, reported net income of $6.9 million for the quarter ended June 30, 2023, in line with expectations. This represents a 17.1% increase from the year-earlier second quarter.

Performance through the first half of 2023 remains very strong (returns are annualized):

Return on average assets:	1.60%
Return on average equity:	14.87%
Net interest margin (tax equivalent):	4.45%
Efficiency ratio:	53.48%
Allowance for credit losses:	1.04%
Liquidity coverage ratio:	124%
Core deposit ratio:	74%
FDIC insured deposits / total deposits:	76%
Net charge-offs:	$0
Earnings per common share:	$1.86
Tangible book value per common share:	$22.73

“The MainStreet team has done an extraordinary job of maximizing the Company’s financial performance while staying true-to-form with proper risk management practices.  We were well-prepared for a rising rate environment,” said Jeff W. Dick, Chairman and CEO of MainStreet Bancshares, Inc. and MainStreet Bank. “And the recent collapse of a few badly managed regional banks shook the industry but ultimately gave us the opportunity to tell our risk management story.”

“Spurred by the FOMC rate increases, the collapse of Silicon Valley Bank also prompted an immediate jump in deposit costs for the industry,” Dick explained. “It appears that the FOMC will increase rates an additional 25 basis points when it meets on July 26^th, but the industry is sensing a slowdown in future rises thereafter.”    

The Company’s loan book totaled $1.66 billion at the end of the second quarter, up 15.7% from $1.43 billion one year earlier and up 1.3% from the first quarter.

“We are working hard for our customers and sticking to our strong underwriting standards.  Our asset quality remains pristine,” said Abdul Hersiburane, president of MainStreet Bank. “Our business bankers and lenders are redoubling their efforts to gain deposit share in our market, and we continue to benefit from a flight to quality as discerning depositors seek the security of federal insurance for their operating funds and other large deposits.”

ABOUT AVENU™

Avenu™ onboarded its first client while designers and engineers completed final sprints to harden our multitenancy and cyber architecture and to accelerate implementation of a debit card for funding. Avenu™ connects partners and their apps directly and seamlessly to MainStreet Bank’s banking core. Avenu™ is expected to accelerate MainStreet Bank’s deposit growth to support expanded lending.

Avenu™ — Banking Delivered

Avenu™ is the only embedded banking solution that connects fintechs and their apps directly and seamlessly to a bank — MainStreet Bank. We are not a sponsor bank without our own technology, and we are not a middleware software company (aggregator) without our own bank. We are Avenu™, a leading financial technology company backed by an established community business bank in the heart of Washington, D.C.

Avenu™ — Serving a Community of Innovation

Our clients are fintechs, application developers, money movers, and entrepreneurs. They all have one thing in common: They are innovating how money moves to solve real-world issues and help communities thrive. We are focused on servicing our community and long-term business relationships.

ABOUT MAINSTREET BANK: MainStreet operates six branches in Herndon, Fairfax, McLean, Leesburg, Clarendon, and Washington, D.C. MainStreet Bank 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 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 the novel coronavirus (COVID-19) outbreak, 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)

	June 30, 2023			March 31, 2023			December 31, 2022*			September 30, 2022			June 30, 2022
ASSETS
Cash and cash equivalents
Cash and due from banks	$	67,700		$	225,334		$	48,931		$	50,636		$	55,636
Federal funds sold		30,341			—			81,669			54,098			47,013
Total cash and cash equivalents		98,041			225,334			130,600			104,734			102,649
Investment securities available for sale, at fair value		60,579			63,209			62,631			162,319			143,240
Investment securities held to maturity, at amortized cost, net of allowance for credit losses of $0 for all periods		17,590			17,616			17,642			17,670			17,698
Restricted equity securities, at amortized cost		20,304			22,436			24,325			16,436			16,485
Loans, net of allowance for credit losses of $16,047, $15,435, $14,114, $12,994, and $12,982, respectively		1,637,484			1,617,275			1,579,950			1,448,071			1,416,875
Premises and equipment, net		14,427			14,521			14,709			14,523			14,756
Accrued interest and other receivables		10,256			9,744			9,581			8,273			7,313
Computer software, net of amortization		12,266			10,559			9,149			7,258			4,956
Bank owned life insurance		37,763			37,503			37,249			36,996			36,742
Other assets		40,641			36,811			39,915			43,835			32,665
Total Assets	$	1,949,351		$	2,055,008		$	1,925,751		$	1,860,115		$	1,793,379
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Non-interest bearing deposits	$	388,992		$	487,875		$	550,690		$	566,016		$	535,591
Interest bearing demand deposits		71,308			100,522			80,099			93,695			99,223
Savings and NOW deposits		51,294			53,499			51,419			54,240			58,156
Money market deposits		380,500			260,316			222,540			254,190			231,207
Time deposits		701,289			730,076			608,141			585,783			575,950
Total deposits		1,593,383			1,632,288			1,512,889			1,553,924			1,500,127
Federal funds borrowed		30,000			60,696			—			—			—
Federal Home Loan Bank advances		—			45,000			100,000			—			—
Subordinated debt		72,444			72,344			72,245			72,146			72,047
Other liabilities		43,016			39,692			42,335			44,045			32,801
Total Liabilities		1,738,843			1,850,020			1,727,469			1,670,115			1,604,975
Stockholders’ Equity:
Preferred stock		27,263			27,263			27,263			27,263			27,263
Common stock		29,177			29,185			28,736			28,728			29,178
Capital surplus		64,768			64,213			63,999			63,231			64,822
Retained earnings		97,646			91,991			86,830			80,534			73,702
Accumulated other comprehensive loss		(8,346	)		(7,664	)		(8,546	)		(9,756	)		(6,561	)
Total Stockholders’ Equity		210,508			204,988			198,282			190,000			188,404
Total Liabilities and Stockholders’ Equity	$	1,949,351		$	2,055,008		$	1,925,751		$	1,860,115		$	1,793,379

*Derived from audited financial statements

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME INFORMATION

(In thousands, except share and per share data)

	Year-to-Date				Three Months Ended
	June 30, 2023		June 30, 2022		June 30, 2023		March 31, 2023		December 31, 2022		September 30, 2022			June 30, 2022
INTEREST INCOME:
Interest and fees on loans	$	55,586	$	34,639	$	28,855	$	26,731	$	23,972	$	20,261		$	17,954
Interest on investment securities
Taxable securities		926		758		407		518		467		378			401
Tax-exempt securities		529		535		265		264		262		261			263
Interest on federal funds sold		2,311		229		1,179		1,132		1,071		1,013			195
Total interest income		59,352		36,161		30,706		28,645		25,772		21,913			18,813
INTEREST EXPENSE:
Interest on interest bearing demand deposits		594		170		251		343		256		175			105
Interest on savings and NOW deposits		255		79		147		108		81		43			42
Interest on money market deposits		4,129		270		2,926		1,203		781		496			151
Interest on time deposits		11,221		2,961		7,077		4,144		2,966		2,275			1,530
Interest on federal funds borrowed		239		—		201		38		—		—			—
Interest on Federal Home Loan Bank advances		919		83		13		906		264		—			52
Interest on subordinated debt		1,632		1,280		820		812		828		828			812
Total interest expense		18,989		4,843		11,435		7,554		5,176		3,817			2,692
Net interest income		40,363		31,318		19,271		21,091		20,596		18,096			16,121
Provision for credit losses		921		1,280		638		283		1,118		-			480
Net interest income after provision for credit losses		39,442		30,038		18,633		20,808		19,478		18,096			15,641
NON-INTEREST INCOME:
Deposit account service charges		1,125		1,209		535		590		610		601			597
Bank owned life insurance income		514		500		259		255		253		254			250
Loan swap fee income		—		101		—		—		—		518			101
Net gain on held-to-maturity securities		—		4		—		—		—		—			4
Net gain (loss) on sale of loans		—		43		—		—		—		(211	)		—
Other non-interest income		174		568		16		158		196		186			312
Total other income		1,813		2,425		810		1,003		1,059		1,348			1,264
NON-INTEREST EXPENSES:
Salaries and employee benefits		14,216		11,152		6,595		7,621		6,775		5,874			5,604
Furniture and equipment expenses		1,270		1,316		772		498		710		760			659
Advertising and marketing		1,495		980		698		797		620		704			574
Occupancy expenses		912		693		426		486		378		400			352
Outside services		994		935		504		490		529		611			567
Administrative expenses		426		405		211		215		214		253			195
Other operating expenses		3,242		2,976		1,646		1,596		1,481		1,291			1,543
Total non-interest expenses		22,555		18,457		10,852		11,703		10,707		9,893			9,494
Income before income tax expense		18,700		14,006		8,591		10,108		9,830		9,551			7,411
Income tax expense		3,602		2,654		1,645		1,957		2,252		1,808			1,481
Net income		15,098		11,352		6,946		8,151		7,578		7,743			5,930
Preferred stock dividends		1,078		1,078		539		539		539		539			539
Net income available to common shareholders	$	14,020	$	10,274	$	6,407	$	7,612	$	7,039	$	7,204		$	5,391
Net income per common share, basic and diluted	$	1.86	$	1.35	$	0.85	$	1.01	$	0.95	$	0.97		$	0.71
Weighted average number of common shares, basic and diluted		7,519,949		7,611,303		7,522,764		7,517,213		7,433,607		7,463,719			7,575,484

UNAUDITED LOAN, DEPOSIT AND BORROWING DETAIL

(In thousands)

	June 30, 2023						March 31, 2023						June 30, 2022						Percentage Change
	$ Amount			% of Total			$ Amount			% of Total			$ Amount			% of Total			Last 3 Mos			Last 12 Mos
LOANS:
Construction and land development loans	$	421,277			25.4	%	$	415,078			25.3	%	$	358,062			25.0	%		1.5	%		17.7	%
Residential real estate loans		410,550			24.7	%		391,648			23.9	%		366,758			25.6	%		4.8	%		11.9	%
Commercial real estate loans		727,772			43.9	%		737,019			45.0	%		599,683			41.8	%		-1.3	%		21.4	%
Commercial and industrial loans		93,604			5.6	%		86,937			5.3	%		92,672			6.5	%		7.7	%		1.0	%
Consumer loans		5,750			0.4	%		7,534			0.5	%		17,223			1.1	%		-23.7	%		-66.6	%
Total Gross Loans	$	1,658,953			100.0	%	$	1,638,216			100.0	%	$	1,434,398			100.0	%		1.3	%		15.7	%
Less: Allowance for credit losses		(16,047	)					(15,435	)					(12,982	)
Net deferred loan fees		(5,422	)					(5,506	)					(4,541	)
Net Loans	$	1,637,484					$	1,617,275					$	1,416,875
DEPOSITS:
Non-interest bearing deposits	$	388,992			24.4	%	$	487,875			29.9	%	$	535,591			35.7	%		-20.3	%		-27.4	%
Interest-bearing deposits:
Demand deposits		71,308			4.5	%		100,522			6.2	%		99,223			6.6	%		-29.1	%		-28.1	%
Savings and NOW deposits		51,294			3.2	%		53,499			3.3	%		58,156			3.9	%		-4.1	%		-11.8	%
Money market accounts		380,500			23.9	%		260,316			15.9	%		231,207			15.4	%		46.2	%		64.6	%
Certificates of deposit $250,000 or more		406,583			25.5	%		458,683			28.1	%		383,340			25.6	%		-11.4	%		6.1	%
Certificates of deposit less than $250,000		294,706			18.5	%		271,393			16.6	%		192,610			12.8	%		8.6	%		53.0	%
Total Deposits	$	1,593,383			100.0	%	$	1,632,288			100.0	%	$	1,500,127			100.0	%		-2.4	%		6.2	%
BORROWINGS:
Federal funds borrowed		30,000			29.3	%		60,696			34.1	%		—			0.0	%		-50.6	%		0.0	%
Federal Home Loan Bank advances		—			0.0	%		45,000			25.3	%		—			0.0	%		-100.0	%		0.0	%
Subordinated debt		72,444			70.7	%		72,344			40.6	%		72,047			100.0	%		0.1	%		0.6	%
Total Borrowings	$	102,444			100.0	%	$	178,040			100.0	%	$	72,047			100.0	%		-42.5	%		42.2	%
Total Deposits and Borrowings	$	1,695,827					$	1,810,328					$	1,572,174						-6.3	%		7.9	%
Core customer funding sources (1)	$	1,184,958			69.9	%	$	1,156,279			63.9	%	$	1,094,493			69.6	%		2.5	%		8.3	%
Brokered and listing service sources (2)		408,425			24.1	%		476,009			26.3	%		405,634			25.8	%		-14.2	%		0.7	%
Federal funds borrowed		30,000			1.7	%		60,696			3.3	%		—			0.0	%		-50.6	%		0.0	%
Federal Home Loan Bank advances		—			0.0	%		45,000			2.5	%		—			0.0	%		-100.0	%		0.0	%
Subordinated debt (3)		72,444			4.3	%		72,344			4.0	%		72,047			4.6	%		0.1	%		0.6	%
Total Funding Sources	$	1,695,827			100.0	%	$	1,810,328			100.0	%	$	1,572,174			100.0	%		-6.3	%		7.9	%

(1)	Includes ICS, CDARS, and reciprocal deposits maintained by customers, which represent sweep accounts tied to customer operating accounts
(2)	Consists of certificates of deposit (CD) through multiple listing services and multiple brokered deposit services, as well as ICS and CDARS one-way certificates of deposit and regional money market accounts
(3)	Subordinated debt obligation qualifies as Tier 2 capital at the holding company and Tier 1 capital at the Bank

UNAUDITED AVERAGE BALANCE SHEETS, INTEREST AND RATES

(In thousands)

	For the three months ended June 30, 2023							For the three months ended June 30, 2022
	Average Balance		Interest Income/ Expense (3)(4)		Average Yields/ Rate (annualized) (3)(4)			Average Balance		Interest Income/ Expense (3)(4)		Average Yields/ Rate (annualized) (3)(4)
ASSETS:
Interest earning assets:
Loans (1)(2)	$	1,649,300	$	28,855		7.02	%	$	1,434,877	$	17,954		5.02	%
Securities:
Taxable		68,381		407		2.39	%		73,153		401		2.20	%
Tax-exempt		37,876		335		3.55	%		38,507		333		3.47	%
Federal funds and interest-bearing deposits		87,608		1,179		5.40	%		98,326		195		0.80	%
Total interest earning assets	$	1,843,165	$	30,776		6.70	%	$	1,644,863	$	18,883		4.60	%
Other assets		69,488							65,225
Total assets	$	1,912,653						$	1,710,088
Liabilities and Stockholders’ Equity:
Interest-bearing liabilities:
Interest-bearing demand deposits	$	73,800	$	251		1.36	%	$	96,352	$	105		0.44	%
Savings and NOW deposits		50,644		147		1.16	%		62,588		42		0.27	%
Money market deposit accounts		344,118		2,926		3.41	%		234,097		151		0.26	%
Time deposits		723,056		7,077		3.93	%		499,734		1,530		1.23	%
Total interest-bearing deposits	$	1,191,618	$	10,401		3.50	%	$	892,771	$	1,828		0.82	%
Federal funds purchased		15,174		201		5.31	%		1		—		—
FHLB borrowings		989		13		5.27	%		35,275		52		0.59	%
Subordinated debt		72,405		820		4.54	%		72,009		812		4.52	%
Total interest-bearing liabilities	$	1,280,186	$	11,435		3.58	%	$	1,000,056	$	2,692		1.08	%
Demand deposits and other liabilities		424,505							521,130
Total liabilities	$	1,704,691						$	1,521,186
Stockholders’ Equity		207,962							188,902
Total Liabilities and Stockholders’ Equity	$	1,912,653						$	1,710,088
Interest Rate Spread						3.12	%						3.52	%
Net Interest Income			$	19,341						$	16,191
Net Interest Margin						4.21	%						3.95	%

(1)	Includes loans classified as non-accrual
(2)	Total loan interest income includes amortization of deferred loan fees, net of deferred loan costs
(3)	Income and yields for all periods presented are reported on a tax-equivalent basis using the federal statutory rate of 21%
(4)	Refer to Appendix for reconciliation of non-GAAP measures

UNAUDITED AVERAGE BALANCE SHEETS, INTEREST AND RATES

(In thousands)

	For the six months ended June 30, 2023							For the six months ended June 30, 2022
	Average Balance		Interest Income/ Expense (3)(4)		Average Yields/ Rate (annualized) (3)(4)			Average Balance		Interest Income/ Expense (3)(4)		Average Yields/ Rate (annualized) (3)(4)
ASSETS:
Interest earning assets:
Loans (1)(2)	$	1,624,664	$	55,586		6.90	%	$	1,406,457	$	34,639		4.97	%
Securities:
Taxable		70,147		926		2.66	%		73,283		758		2.09	%
Tax-exempt		37,908		670		3.56	%		39,023		677		3.50	%
Federal funds and interest-bearing deposits		103,053		2,311		4.52	%		91,081		229		0.51	%
Total interest earning assets	$	1,835,772	$	59,493		6.54	%	$	1,609,844	$	36,303		4.55	%
Other assets		63,465							76,387
Total assets	$	1,899,237						$	1,686,231
Liabilities and Stockholders’ Equity:
Interest-bearing liabilities:
Interest-bearing demand deposits	$	78,568	$	594		1.52	%	$	83,450	$	170		0.41	%
Savings and NOW deposits		51,290		255		1.00	%		72,617		79		0.22	%
Money market deposit accounts		284,906		4,129		2.92	%		250,908		270		0.22	%
Time deposits		698,384		11,221		3.24	%		478,376		2,961		1.25	%
Total interest-bearing deposits	$	1,113,148	$	16,199		2.93	%	$	885,351	$	3,480		0.79	%
Federal funds purchased		9,103		239		5.29	%		1		—		—
FHLB borrowings		39,199		919		4.73	%		36,215		83		0.46	%
Subordinated debt		72,355		1,632		4.55	%		58,079		1,280		4.44	%
Total interest-bearing liabilities	$	1,233,805	$	18,989		3.10	%	$	979,646	$	4,843		1.00	%
Demand deposits and other liabilities		460,632							517,281
Total liabilities	$	1,694,437						$	1,496,927
Stockholders’ Equity		204,800							189,304
Total Liabilities and Stockholders’ Equity	$	1,899,237						$	1,686,231
Interest Rate Spread						3.44	%						3.55	%
Net Interest Income			$	40,504						$	31,460
Net Interest Margin						4.45	%						3.94	%

(1)	Includes loans classified as non-accrual
(2)	Total loan interest income includes amortization of deferred loan fees, net of deferred loan costs
(3)	Income and yields for all periods presented are reported on a tax-equivalent basis using the federal statutory rate of 21%
(4)	Refer to Appendix for reconciliation of non-GAAP measures

UNAUDITED SUMMARY FINANCIAL DATA

(Dollars in thousands except per share data)

	At or For the Three Months Ended						At or For the Six Months Ended
	June 30,						June 30,
	2023			2022			2023			2022
Per share Data and Shares Outstanding
Earnings per common share (basic and diluted)	$	0.85		$	0.71		$	1.86		$	1.35
Book value per common share	$	24.36		$	21.41		$	24.36		$	21.41
Tangible book value per common share(2)	$	22.73		$	20.75		$	22.73		$	20.75
Weighted average common shares (basic and diluted)		7,522,764			7,575,484			7,519,949			7,611,303
Common shares outstanding at end of period		7,522,297			7,526,463			7,522,297			7,526,463
Performance Ratios
Return on average assets (annualized)		1.46	%		1.39	%		1.60	%		1.36	%
Return on average equity (annualized)		13.40	%		12.59	%		14.87	%		12.09	%
Return on average common equity (annualized)		14.22	%		13.38	%		15.92	%		12.79	%
Yield on earning assets (FTE) (2) (annualized)		6.70	%		4.60	%		6.54	%		4.55	%
Cost of interest bearing liabilities (annualized)		3.58	%		1.08	%		3.10	%		1.00	%
Net interest spread (FTE)(2)		3.12	%		3.52	%		3.44	%		3.55	%
Net interest margin (FTE)(2) (annualized)		4.21	%		3.95	%		4.45	%		3.94	%
Noninterest income as a percentage of average assets (annualized)		0.17	%		0.30	%		0.19	%		0.29	%
Noninterest expense to average assets (annualized)		2.28	%		2.23	%		2.39	%		2.21	%
Efficiency ratio(3)		54.04	%		54.61	%		53.48	%		54.70	%
Asset Quality
Allowance for credit losses (ACL)
Beginning balance, ACL - loans	$	15,435		$	12,500		$	14,114		$	11,697
Add: recoveries		1			2			12			5
Less: charge-offs		(6	)		—			(6	)		—
Add: provision for credit losses		617			480			1,032			1280
Add: current expected credit losses, nonrecurring adoption		—			—			895			—
Ending balance, ACL - loans	$	16,047		$	12,982		$	16,047		$	12,982
Beginning balance, reserve for unfunded commitment (RUC)	$	1,178		$	—		$	—		$	—
Add: current expected credit losses, nonrecurring adoption		—			—			1,310			—
Add: provision for unfunded commitments		21			—			21			—
Less: recovery of unfunded commitments		—			—			(132	)		—
Ending balance, RUC	$	1,199		$	—		$	1,199		$	—
Total allowance for credit losses	$	17,246		$	12,982		$	17,246		$	12,982
Allowance for credit losses on loans to total gross loans		0.97	%		0.91	%		0.97	%		0.91	%
Allowance for credit losses to total gross loans		1.04	%		0.91	%		1.04	%		0.91	%
Allowance for credit losses on loans to non-performing assets		N/A			N/A			N/A			N/A
Net charge-offs (recoveries) to average gross loans (annualized)		0.00	%		0.00	%		0.00	%		0.00	%
Concentration Ratios
Commercial real estate loans to total capital (4)		363.43	%		366.10	%		363.43	%		366.10	%
Construction loans to total capital (5)		139.59	%		138.16	%		139.59	%		138.16	%
Non-performing Assets
Loans 30-89 days past due to total gross loans		0.00	%		0.01	%		0.00	%		0.01	%
Loans 90 days past due to total gross loans		0.00	%		0.00	%		0.00	%		0.00	%
Non-accrual loans to total gross loans		0.00	%		0.00	%		0.00	%		0.00	%
Other real estate owned	$	—		$	—		$	—		$	—
Non-performing assets	$	—		$	—		$	—		$	—
Non-performing assets to total assets		0.00	%		0.00	%		0.00	%		0.00	%
Regulatory Capital Ratios (Bank only) (1)
Total risk-based capital ratio		16.79	%		16.23	%		16.79	%		16.23	%
Tier 1 risk-based capital ratio		15.83	%		15.42	%		15.83	%		15.42	%
Leverage ratio		14.81	%		14.34	%		14.81	%		14.34	%
Common equity tier 1 ratio		15.83	%		15.42	%		15.83	%		15.42	%
Other information
Closing stock price	$	22.66		$	22.77		$	22.66		$	22.77
Tangible equity / tangible assets (2)		10.24	%		10.26	%		10.24	%		10.26	%
Average tangible equity / average tangible assets (2)		10.34	%		10.81	%		10.28	%		11.03	%
Number of full time equivalent employees		179			146			179			146
Number of full service branch offices		6			6			6			6

(1)	Regulatory capital ratios as of June 30, 2023 are preliminary
(2)	Refer to Appendix for reconciliation of non-GAAP measures
(3)	Efficiency ratio is calculated as non-interest expense as a percentage of net interest income and non-interest income
(4)	Commercial real estate includes only non-owner occupied and construction loans as a percentage of Bank capital
(5)	Construction loans as a percentage of Bank capital

Unaudited Reconciliation of Certain Non-GAAP Financial Measures

(Dollars In thousands)

	For the three months ended June 30,						For the six months ended June 30,
	2023			2022			2023			2022
Net interest margin (FTE)
Net interest income (GAAP)	$	19,271		$	16,121		$	40,363		$	31,318
FTE adjustment on tax-exempt securities		70			70			141			142
Net interest income (FTE) (non-GAAP)		19,341			16,191			40,504			31,460
Average interest earning assets		1,843,165			1,644,863			1,835,772			1,609,844
Net interest margin (GAAP)		4.19	%		3.93	%		4.43	%		3.92	%
Net interest margin (FTE) (non-GAAP)		4.21	%		3.95	%		4.45	%		3.94	%

	As of June 30,				As of June 30,
	2023		2022		2023		2022
Stockholders equity, adjusted
Total stockholders equity (GAAP)	$	210,508	$	188,404	$	210,508	$	188,404
Less: intangible assets		12,266		4,956		12,266		4,956
Tangible stockholders equity (non-GAAP)		198,242		183,448	$	198,242	$	183,448
Less: preferred stock		27,263		27,263		27,263		27,263
Tangible common stockholders equity (non-GAAP)		170,979		156,185		170,979		156,185
Shares outstanding		7,522,297		7,526,463		7,522,297		7,526,463
Tangible book value per common share (non-GAAP)	$	22.73	$	20.75	$	22.73	$	20.75

	As of June 30,						As of June 30,
	2023			2022			2023			2022
Total assets, adjusted
Total assets (GAAP)	$	1,949,351		$	1,793,379		$	1,949,351		$	1,793,379
Less: intangible assets		(12,266	)		(4,956	)		(12,266	)		(4,956	)
Total tangible assets (non-GAAP)		1,937,085			1,788,423			1,937,085			1,788,423

	For the three months ended June 30,						For the six months ended June 30,
	2023			2022			2023			2022
Average stockholders equity, adjusted
Total average stockholders equity (GAAP)	$	207,962		$	188,902		$	204,800		$	189,304
Less: average intangible assets		(11,284	)		(4,512	)		(10,585	)		(3,746	)
Total average tangible stockholders equity (non-GAAP)		196,678			184,390			194,215			185,558

	For the three months ended June 30,						For the six months ended June 30,
	2023			2022			2023			2022
Average assets, adjusted
Total average average assets (GAAP)	$	1,912,653		$	1,710,088		$	1,899,237		$	1,686,231
Less: average intangible assets		(11,284	)		(4,512	)		(10,585	)		(3,746	)
Total average tangible assets (non-GAAP)		1,901,369			1,705,576			1,888,652			1,682,485

EX-99.2

Exhibit 99.2

XML

Document And Entity Information	Jul. 24, 2023
Document Information [Line Items]
Entity, Registrant Name	MainStreet Bancshares, Inc.
Document, Type	8-K
Document, Period End Date	Jul. 24, 2023
Entity, Incorporation, State or Country Code	VA
Entity, File Number	001-38817
Entity, Tax Identification Number	81-2871064
Entity, Address, Address Line One	10089 Fairfax Boulevard
Entity, Address, City or Town	Fairfax
Entity, Address, State or Province	VA
Entity, Address, Postal Zip Code	22030
City Area Code	703
Local Phone Number	481-4567
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity, Emerging Growth Company	true
Entity, Ex Transition Period	true
Amendment Flag	false
Entity, Central Index Key	0001693577
CommonStock Custom [Member]
Document Information [Line Items]
Title of 12(b) Security	Common Stock
Trading Symbol	MNSB
Security Exchange Name	NASDAQ
DepositarySharesEachRepresentingA140thInterestInAShareOf750SeriesAFixedrateNoncumulativePerpetualPreferredStock Custom [Member]
Document Information [Line Items]
Title of 12(b) Security	Depositary Shares (each representing a 1/40th interest in a share of 7.50% Series A Fixed-Rate Non-Cumulative Perpetual Preferred Stock
Trading Symbol	MNSBP
Security Exchange Name	NASDAQ