MainStreet Bancshares Inc. Reports Strong Second Quarter Earnings

By PR Newswire | July 22, 2025, 7:30 AM

Net Income Climbs on Net Interest Margin Expansion and Strategic Balance Sheet Management

FARIFAX, Va., July 22, 2025 /PRNewswire/ -- MainStreet Bancshares, Inc. (Nasdaq: MNSB & MNSBP), the financial holding company for MainStreet Bank, reported a surging net income of $4.6 million and net interest margin of 3.75% for the quarter ended June 30, 2025, an increase of $2.1 million and 45 basis points from the previous quarter respectively. Net interest income expanded $2.8 million to $19.3 million and earnings per common share grew to $0.53 during the same period, outperforming market expectations. The Company continues to report strong asset quality and strong capital.

MainStreet Bank Headquarters 10089 Fairfax Blvd Fairfax, Virginia 22030 (PRNewsfoto/MainStreet Bancshares, Inc.)

"The team's hard work, dedication and focus on our financial performance was proven with this quarter's results," said Jeff W. Dick, Chairman and CEO of MainStreet Bancshares, Inc. and MainStreet Bank. "We are resolute in building our core banking franchise."

"Our commitment to work with our customers is yielding the results we expected," said Tom Floyd, Chief Lending Officer of MainStreet Bank. "The loan portfolio is in great shape, largely due to our unwavering credit discipline and knowledge of the key players in the community."

"The loan to deposit ratio remained well utilized at 99%," said Alex Vari, Chief Financial Officer of MainStreet Bank. "We are focused on strategically managing our deposits, keeping them in lockstep with our loan funding needs. This directly contributed to the growth of our net interest margin."

The Company maintains an active share repurchase plan in place with approximately $3.1 million in available capacity and continues to evaluate share repurchases as part of the Company's strategic capital plan.

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 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)
	June 30, 2025		March 31, 2025		December 31, 2024*		September 30, 2024		June 30, 2024
ASSETS
Cash and cash equivalents
Cash and due from banks	$	20,888	$	18,385	$	21,351	$	15,319	$	17,112
Interest-bearing deposits at other financial institutions		85,796		159,582		161,866		191,637		50,495
Federal funds sold		26,600		24,673		24,491		25,158		23,852
Total cash and cash equivalents		133,284		202,640		207,708		232,114		91,459
Investment securities available for sale, at fair value		56,138		55,935		55,747		58,489		57,605
Investment securities held to maturity, at amortized cost, net of allowance for credit losses of $0 for all periods		14,846		15,657		16,078		16,016		16,036
Restricted securities, at amortized cost		7,005		7,005		6,873		6,873		6,749
Loans, net of allowance for credit losses of $19,057, $19,460, $19,450, $18,327, and $17,098, respectively		1,767,432		1,811,789		1,810,556		1,775,558		1,778,840
Premises and equipment, net		16,569		13,020		13,287		13,571		13,787
Accrued interest and other receivables		15,023		9,607		11,311		11,077		11,916
Computer software, net of amortization		—		—		—		18,881		17,205
Bank owned life insurance		40,117		39,809		39,507		39,203		38,901
Other assets		64,367		67,383		67,031		52,817		61,248
Total Assets	$	2,114,781	$	2,222,845	$	2,228,098	$	2,224,599	$	2,093,746
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Non-interest bearing deposits	$	330,045	$	345,319	$	324,307	$	347,575	$	314,636
Interest-bearing demand deposits		124,090		106,033		139,780		197,527		179,513
Savings and NOW deposits		116,069		124,049		64,337		61,893		60,867
Money market deposits		463,904		511,925		560,082		451,936		476,396
Time deposits		764,439		820,999		819,288		834,738		723,951
Total deposits		1,798,547		1,908,325		1,907,794		1,893,669		1,755,363
Subordinated debt, net		71,238		72,138		73,039		72,940		72,841
Other liabilities		31,526		32,764		39,274		31,939		40,827
Total Liabilities		1,901,311		2,013,227		2,020,107		1,998,548		1,869,031
Stockholders' Equity:
Preferred stock		27,263		27,263		27,263		27,263		27,263
Common stock		29,825		29,810		29,466		29,463		29,452
Capital surplus		68,261		67,612		67,823		67,083		66,392
Retained earnings		95,585		92,305		91,150		108,616		109,651
Accumulated other comprehensive loss		(7,464)		(7,372)		(7,711)		(6,374)		(8,043)
Total Stockholders' Equity		213,470		209,618		207,991		226,051		224,715
Total Liabilities and Stockholders' Equity	$	2,114,781	$	2,222,845	$	2,228,098	$	2,224,599	$	2,093,746

*Derived from audited financial statements

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME (LOSS) INFORMATION (In thousands, except share and per share data)
	Year-to-Date				Three Months Ended
	June 30, 2025		June 30, 2024		June 30, 2025		March 31, 2025		December 31, 2024		September 30, 2024		June 30, 2024
INTEREST INCOME:
Interest and fees on loans	$	63,554	$	62,238	$	32,443	$	31,111	$	31,323	$	31,615	$	31,655
Interest on investment securities
Taxable securities		851		865		431		420		431		397		430
Tax-exempt securities		530		538		267		263		262		294		268
Interest on interest-bearing deposits at other financial institutions		1,878		1,694		932		946		2,826		1,041		806
Interest on federal funds sold		436		570		213		223		277		244		277
Total interest income		67,249		65,905		34,286		32,963		35,119		33,591		33,436
INTEREST EXPENSE:
Interest on interest-bearing demand deposits		2,052		3,933		1,004		1,048		2,612		2,117		2,118
Interest on savings and NOW deposits		612		347		391		221		201		206		190
Interest on money market deposits		9,983		10,632		4,707		5,276		5,475		5,277		5,542
Interest on time deposits		17,626		17,819		8,595		9,031		10,003		9,543		9,010
Interest on federal funds purchased		65		298		—		65		—		277		191
Interest on Federal Home Loan Bank advances		—		46		—		—		—		—		—
Interest on subordinated debt		1,611		1,640		799		812		787		828		820
Total interest expense		31,949		34,715		15,496		16,453		19,078		18,248		17,871
Net interest income		35,300		31,190		18,790		16,510		16,041		15,343		15,565
Provision for (recovery of) credit losses		(543)		443		(543)		—		3,407		2,913		638
Net interest income after provision for (recovery of) credit losses		35,843		30,747		19,333		16,510		12,634		12,430		14,927
NON-INTEREST INCOME:
Deposit account service charges		1,068		959		538		530		481		557		490
Bank owned life insurance income		610		583		308		302		304		302		291
Gain on retirement of subordinated debt		128		—		68		60		—		—		—
Gain on valuation of equity securities		103		—		103		—		—		—		—
Net loss on securities called or matured		—		(48)		—		—		—		—		(48)
Other non-interest income		96		66		49		47		22		27		31
Total non-interest income		2,005		1,560		1,066		939		807		886		764
NON-INTEREST EXPENSES:
Salaries and employee benefits		16,664		14,972		8,279		8,385		8,253		7,250		7,484
Furniture and equipment expenses		2,157		1,875		1,141		1,016		830		931		940
Advertising and marketing		1,011		1,020		530		481		600		579		566
Occupancy expenses		714		849		318		396		358		407		415
Outside services		2,463		1,614		1,290		1,173		1,168		845		839
Administrative expenses		499		471		270		229		243		215		229
Computer software intangible impairment		—		—		—		—		19,721		—		—
Other operating expenses		5,551		4,515		2,917		2,634		3,258		2,992		2,362
Total non-interest expenses		29,059		25,316		14,745		14,314		34,431		13,219		12,835
Income (loss) before income tax expense (benefit)		8,789		6,991		5,654		3,135		(20,990)		97		2,856
Income tax expense (benefit)		1,746		1,068		1,064		682		(4,823)		(168)		238
Net income (loss)		7,043		5,923		4,590		2,453		(16,167)		265		2,618
Preferred stock dividends		1,078		1,078		539		539		539		539		539
Net income (loss) available to common shareholders	$	5,965	$	4,845	$	4,051	$	1,914	$	(16,706)	$	(274)	$	2,079
Earnings (loss) per common share, basic and diluted	$	0.78	$	0.64	$	0.53	$	0.25	$	(2.20)	$	(0.04)	$	0.27
Weighted average number of common shares, basic and diluted		7,670,623		7,610,188		7,704,677		7,636,191		7,603,318		7,601,925		7,608,389

UNAUDITED LOAN, DEPOSIT AND BORROWING DETAIL (In thousands)
	June 30, 2025					March 31, 2025					June 30, 2024					Percentage Change
	$ Amount		% of Total			$ Amount		% of Total			$ Amount		% of Total			Last 3 Mos			Last 12 Mos
LOANS:
Construction and land development loans	$	328,351		18.3	%	$	344,742		18.8	%	$	410,698		22.8	%		-4.8	%		-20.1	%
Residential real estate loans		452,458		25.3	%		450,728		24.6	%		449,700		25.0	%		0.4	%		0.6	%
Commercial real estate loans		911,390		50.9	%		933,947		50.9	%		845,030		46.9	%		-2.4	%		7.9	%
Commercial and industrial loans		97,699		5.5	%		105,180		5.6	%		93,559		5.2	%		-7.1	%		4.4	%
Consumer loans		1,075		0.1	%		1,331		0.1	%		2,232		0.1	%		-19.2	%		-51.8	%
Total Gross Loans	$	1,790,973		100.0	%	$	1,835,928		100.0	%	$	1,801,219		100.0	%		-2.4	%		-0.6	%
Less: Allowance for credit losses		(19,057)					(19,460)					(17,098)
Net deferred loan fees		(4,484)					(4,679)					(5,281)
Net Loans	$	1,767,432				$	1,811,789				$	1,778,840
DEPOSITS:
Non-interest bearing deposits	$	330,045		18.4	%	$	345,319		18.1	%	$	314,636		17.9	%		-4.4	%		4.9	%
Interest-bearing deposits:
Demand deposits		124,090		6.9	%		106,033		5.6	%		179,513		10.2	%		17.0	%		-30.9	%
Savings and NOW deposits		116,069		6.5	%		124,049		6.5	%		60,867		3.5	%		-6.4	%		90.7	%
Money market deposits		463,904		25.8	%		511,925		26.8	%		476,396		27.1	%		-9.4	%		-2.6	%
Certificates of deposit $250,000 or more		490,692		27.2	%		541,772		28.4	%		473,827		27.0	%		-9.4	%		3.6	%
Certificates of deposit less than $250,000		273,747		15.2	%		279,227		14.6	%		250,124		14.3	%		-2.0	%		9.4	%
Total Deposits	$	1,798,547		100.0	%	$	1,908,325		100.0	%	$	1,755,363		100.1	%		-5.8	%		2.5	%
BORROWINGS:
Subordinated debt, net		71,238		100.0	%		72,138		100.0	%		72,841		100.0	%		-1.2	%		-2.2	%
Total Borrowings	$	71,238		100.0	%	$	72,138		100.0	%	$	72,841					-1.2	%		-2.2	%
Total Deposits and Borrowings	$	1,869,785				$	1,980,463				$	1,828,204					-5.6	%		2.3	%

Core customer funding sources ⁽¹⁾	$	1,329,804		71.1	%	$	1,330,390		67.2	%	$	1,376,991		75.3	%		0.0	%		-3.4	%
Brokered and listing service sources ⁽²⁾		468,743		25.1	%		577,935		29.2	%		378,372		20.7	%		-18.9	%		23.9	%
Subordinated debt, net (3)		71,238		3.8	%		72,138		3.6	%		72,841		4.0	%		-1.2	%		-2.2	%
Total Funding Sources	$	1,869,785		100.0	%	$	1,980,463		100.0	%	$	1,828,204		100.0	%		-5.6	%		2.3	%


(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.
	Excludes $151.3 million in core deposits placed in reciprocal networks for FDIC insurance coverage that will be classified as brokered deposits on the call report in pursuant to rule 12 CFR 337.6(e) as of June 30, 2025.
(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, 2025							For the three months ended June 30, 2024
	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⁾	$	1,819,307	$	32,443		7.15	%	$	1,782,124	$	31,655		7.12	%
Securities:
Taxable		52,911		431		3.27	%		55,323		430		3.12	%
Tax-exempt		35,434		338		3.83	%		36,717		339		3.71	%
Interest-bearing deposits at other financial institutions		84,353		932		4.43	%		59,610		806		5.42	%
Federal funds sold		23,986		213		3.56	%		25,095		277		4.43	%
Total interest-earning assets	$	2,015,991	$	34,357		6.84	%	$	1,958,869	$	33,507		6.86	%
Other assets		116,675							131,656
Total assets	$	2,132,666						$	2,090,525
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Interest-bearing demand deposits	$	112,579	$	1,004		3.58	%	$	172,221	$	2,118		4.93	%
Savings and NOW deposits		119,163		391		1.32	%		47,767		190		1.60	%
Money market deposits		479,267		4,707		3.94	%		463,641		5,542		4.79	%
Time deposits		784,824		8,595		4.39	%		715,777		9,010		5.05	%
Total interest-bearing deposits	$	1,495,833	$	14,697		3.94	%	$	1,399,406	$	16,860		4.83	%
Federal funds purchased		1		—		—			13,298		191		5.76	%
Subordinated debt, net		71,199		799		4.50	%		72,802		820		4.52	%
Total interest-bearing liabilities	$	1,567,033	$	15,496		3.97	%	$	1,485,506	$	17,871		4.83	%
Demand deposits and other liabilities		354,552							381,825
Total liabilities	$	1,921,585						$	1,867,331
Stockholders' Equity		211,081							223,194
Total Liabilities and Stockholders' Equity	$	2,132,666						$	2,090,525
Interest Rate Spread						2.87	%						2.03	%
Net Interest Income			$	18,861						$	15,636
Net Interest Margin						3.75	%						3.20	%


(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 "Unaudited Reconciliation of Certain Non-GAAP Financial Measures" for reconciliation of non-GAAP measures

UNAUDITED AVERAGE BALANCE SHEETS, INTEREST AND RATES (In thousands)
	For the six months ended June 30, 2025							For the six months ended June 30, 2024
	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)	$	1,834,314	$	63,554	6.99		%	$	1,755,443	$	62,238	7.11		%
Securities:
Taxable		53,050		851	3.23		%		55,708		865	3.11		%
Tax-exempt		35,317		671	3.83		%		37,068		681	3.68		%
Interest-bearing deposits at other financial institutions		85,527		1,878	4.43		%		62,931		1,694	5.40		%
Federal funds sold		24,478		436	3.59		%		25,418		570	4.50		%
Total interest-earning assets	$	2,032,686	$	67,390	6.69		%	$	1,936,568	$	66,048	6.84		%
Other assets		111,326							127,430
Total assets	$	2,144,012						$	2,063,998
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Interest-bearing demand deposits	$	111,999	$	2,052	3.69		%	$	159,234	$	3,933	4.95		%
Savings and NOW deposits		93,649		612	1.32		%		45,993		347	1.51		%
Money market deposit		508,319		9,983	3.96		%		448,647		10,632	4.75		%
Time deposits		791,399		17,626	4.49		%		712,898		17,819	5.01		%
Total interest-bearing deposits	$	1,505,366	$	30,273	4.06		%	$	1,366,772	$	32,731	4.80		%
Federal funds purchased		2,790		65	4.70		%		10,386		298	5.75		%
FHLB advances		—		—	—				1,648		46	5.60		%
Subordinated debt, net		72,116		1,611	4.50		%		72,752		1,640	4.52		%
Total interest-bearing liabilities	$	1,580,272	$	31,949	4.08		%	$	1,451,558	$	34,715	4.80		%
Demand deposits and other liabilities		354,133							389,792
Total liabilities	$	1,934,405						$	1,841,350
Stockholders' Equity		209,607							222,648
Total Liabilities and Stockholders' Equity	$	2,144,012						$	2,063,998
Interest Rate Spread						2.61	%						2.04	%
Net Interest Income			$	35,441						$	31,333
Net Interest Margin					3.52		%					3.24		%


(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 "Unaudited Reconciliation of Certain Non-GAAP Financial Measures" for reconciliation of non-GAAP measures

UNAUDITED SUMMARY FINANCIAL DATA (Dollars in thousands except share and per share data)
	At or For the Three Months Ended						At or For the Six Months Ended
	June 30,						June 30,
	2025			2024			2025			2024
*Per share Data and Shares Outstanding*
Earnings per common share (basic and diluted)	$	0.53		$	0.27		$	0.78		$	0.64
Book value per common share	$	24.17		$	25.99		$	24.17		$	25.99
Tangible book value per common share⁽²⁾	$	24.17		$	23.72		$	24.17		$	23.72
Weighted average common shares (basic and diluted)		7,704,677			7,608,389			7,670,623			7,610,188
Common shares outstanding at end of period		7,704,037			7,598,529			7,704,037			7,598,529
*Performance Ratios*
Return on average assets (annualized)		0.86	%		0.50	%		0.66	%		0.58	%
Return on average equity (annualized)		8.72	%		4.70	%		6.78	%		5.34	%
Return on average tangible common equity (annualized)		8.84	%		4.64	%		6.60	%		5.00	%
Yield on earning assets (FTE) (2) (annualized)		6.84	%		6.86	%		6.69	%		6.84	%
Cost of interest bearing liabilities (annualized)		3.97	%		4.83	%		4.08	%		4.80	%
Net interest spread (FTE)(2) (annualized)		2.87	%		2.03	%		2.61	%		2.04	%
Net interest margin (FTE)(2) (annualized)		3.75	%		3.20	%		3.52	%		3.24	%
Non-interest income as a percentage of average assets (annualized)		0.20	%		0.15	%		0.19	%		0.15	%
Non-interest expense to average assets (annualized)		2.77	%		2.46	%		2.73	%		2.46	%
Efficiency ratio(3)		74.26	%		78.60	%		77.90	%		77.30	%
*Asset Quality*
Allowance for credit losses (ACL)
Beginning balance, ACL - loans	$	19,460		$	16,531		$	19,450		$	16,506
Add: recoveries		747			6			757			8
Less: charge-offs		(622)			(370)			(622)			(511)
Add: provision for (recovery of) credit losses - loans		(528)			931			(528)			1,095
Ending balance, ACL - loans	$	19,057		$	17,098		$	19,057		$	17,098

Beginning balance, reserve for unfunded commitment (RUC)	$	287		$	650		$	287		$	1,009
Add: recovery of unfunded commitments, net		(15)			(293)			(15)			(652)
Ending balance, RUC	$	272		$	357		$	272		$	357
Total allowance for credit losses	$	19,329		$	17,455		$	19,329		$	17,455

Allowance for credit losses on loans to total gross loans		1.07	%		0.95	%		1.07	%		0.95	%
Allowance for credit losses on loans to non-performing loans		2.01X		1.78X				2.01X		1.78X
Net charge-offs (recoveries) to average gross loans (annualized)		(0.03)	%		0.08	%		(0.01)	%		0.06	%
*Concentration Ratios*
Commercial real estate loans to total capital⁽⁴⁾		365.89	%		367.24	%		365.89	%		367.24	%
Construction loans to total capital⁽⁵⁾		108.84	%		130.19	%		108.84	%		130.19	%
*Past due and Non-performing Assets*
Loans 30-89 days past due and accruing to total gross loans		2.12	%		0.81	%		2.12	%		0.81	%
Loans 90 days past due and accruing to total gross loans		0.00	%		0.00	%		0.00	%		0.00	%
Non-accrual loans to total gross loans		0.40	%		1.15	%		0.40	%		1.15	%
Other real estate owned	$	—		$	—		$	—		$	—
Non-performing loans	$	7,169		$	20,691		$	7,169		$	20,691
Non-performing assets to total assets		0.34	%		0.99	%		0.34	%		0.99	%
*Regulatory Capital Ratios (Bank only)* *⁽¹⁾*
Total risk-based capital ratio		16.44	%		16.78	%		16.44	%		16.78	%
Tier 1 risk-based capital ratio		15.39	%		15.85	%		15.39	%		15.85	%
Leverage ratio		13.21	%		14.22	%		13.21	%		14.22	%
Common equity tier 1 ratio		15.39	%		15.85	%		15.39	%		15.85	%
*Other information*
Common shares closing stock price	$	18.90		$	17.73		$	18.90		$	17.73
Tangible equity / tangible assets⁽²⁾		10.09	%		9.99	%		10.09	%		9.99	%
Average tangible equity / average tangible assets (2)		9.90	%		9.97	%		9.78	%		10.10	%
Number of full time equivalent employees		174			195			174			195
Number of full service branch offices		6			6			6			6


(1)	Regulatory capital ratios as of June 30, 2025 are preliminary
(2)	Refer to "Unaudited Reconciliation of Certain Non-GAAP Financial Measures" 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, multifamily, 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,
	2025			2024			2025			2024
Net interest margin (FTE)
Net interest income (GAAP)	$	18,790		$	15,565		$	35,300		$	31,190
FTE adjustment on tax-exempt securities		71			71			141			143
Net interest income (FTE) (non-GAAP)		18,861			15,636			35,441			31,333

Average interest earning assets		2,015,991			1,958,869			2,032,686			1,936,568
Net interest margin (GAAP)		3.74	%		3.18	%		3.50	%		3.25	%
Net interest margin (FTE) (non-GAAP)		3.75	%		3.20	%		3.52	%		3.26	%

	For the three months ended June 30,						For the six months ended June 30,
	2025			2024			2025			2024
Yield on earning assets (FTE)
Total interest income (GAAP)	$	34,286		$	33,436		$	67,249		$	65,905
FTE adjustment on tax-exempt securities		71			71			141			143
Total interest income (FTE) (non-GAAP)		34,357			33,507			67,390			66,048

Average interest earning assets		2,015,991			1,958,869			2,032,686			1,936,568
Yield on earning assets (GAAP)		6.82	%		6.85	%		6.67	%		6.83	%
Yield on earning assets (FTE) (non-GAAP)		6.84	%		6.86	%		6.69	%		6.84	%

	For the three months ended June 30,						For the six months ended June 30,
	2025			2024			2025			2024
Net interest spread (FTE)
Yield on earning assets (GAAP)		6.82	%		6.85	%		6.67	%	6.83		%
Yield on earning assets (FTE) (non-GAAP)		6.84	%		6.86	%	6.69		%	6.84		%

Yield on interest-bearing liabilities (GAAP)		3.97	%		4.83	%	4.08		%	4.80		%

Net interest spread (GAAP)		2.85	%		2.02	%	2.59		%		2.03	%
Net interest spread (FTE) (non-GAAP)		2.87	%		2.04	%	2.61		%		2.04	%

	As of June 30,				As of June 30,
	2025		2024		2025		2024
Tangible common stockholders' equity
Total stockholders equity (GAAP)	$	213,470	$	224,715	$	213,470	$	224,715
Less: intangible assets		—		(17,205)		—		(17,205)
Tangible stockholders' equity (non-GAAP)		213,470		207,510	$	213,470		207,510
Less: preferred stock		(27,263)		(27,263)		(27,263)		(27,263)
Tangible common stockholders' equity (non-GAAP)		186,207		180,247		186,207		180,247

Common shares outstanding		7,704,037		7,598,529		7,704,037		7,598,529
Tangible book value per common share (non-GAAP)	$	24.17	$	23.72	$	24.17	$	23.72

	As of June 30,				As of June 30,
	2025		2024		2025		2024
Stockholders equity, adjusted
Total stockholders equity (GAAP)	$	213,470	$	224,715	$	213,470	$	224,715
Less: intangible assets		—		(17,205)		—		(17,205)
Total tangible stockholders equity (non-GAAP)		213,470		207,510		213,470		207,510

	As of June 30,				As of June 30,
	2025		2024		2025		2024
Total tangible assets
Total assets (GAAP)	$	2,114,781	$	2,093,746	$	2,114,781	$	2,093,746
Less: intangible assets		—		(17,205)		—		(17,205)
Total tangible assets (non-GAAP)		2,114,781		2,076,541		2,114,781		2,076,541

	For the three months ended June 30,				For the six months ended June 30,
	2025		2024		2025		2024
Average tangible stockholders' equity
Total average stockholders' equity (GAAP)	$	211,081	$	223,194	$	209,607	$	222,648
Less: average intangible assets		—		(16,386)		—		(15,732)
Total average tangible stockholders' equity (non-GAAP)		211,081		206,808		209,607		206,916

	For the three months ended June 30,				For the six months ended June 30,
	2025		2024		2025		2024
Average tangible assets
Total average assets (GAAP)	$	2,132,666	$	2,090,525	$	2,144,012	$	2,063,998
Less: average intangible assets		—		(16,386)		—		(15,732)
Total average tangible assets (non-GAAP)		2,132,666		2,074,139		2,144,012		2,048,266

Contact: Billy Freesmeier

Chief of Staff

(703) 481-4579

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SOURCE MainStreet Bancshares, Inc.

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MainStreet Bancshares Inc. Reports Strong Second Quarter Earnings

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