Strong credit quality and no adverse loan portfolio trends FAIRFAX, Va., April 22, 2024 /PRNewswire/ -- MainStreet Bancshares, Inc. (NASDAQ:MNSB, MNSBP)), the holding company for MainStreet Bank, reported net income of $2.77 million for the first quarter of 2024. "Our loan portfolio was well-positioned for the current interest rate cycle and continues to generate strong and sustainable interest income.  During the first quarter of 2024, we experienced an uptick in deposit costs, compressing the net interest margin to 3.24%," said Jeff W. Dick, Chairman & CEO of MainStreet Bancshares, Inc. and MainStreet Bank.  "We are focused on improving our funding costs for the remainder of 2024 and anticipate that our cumulative performance ratios will reflect our ability to do so, as we build for the future and deliver positive returns to our shareholders." The Company continues to experience strong asset quality with relatively low levels of past due and non-performing loans.  It should be noted that multifamily housing in the Washington, D.C. metropolitan area is devoid of the type of rent controls experienced in New York City.  Demand for housing in our market far outstrips supply and the rental markets are strong. "Our lending team is very focused on their borrowers and relationships at this time," said Tom Floyd, Chief Lending Officer at MainStreet Bank.  "We want to make sure that if any issues or concerns do arise, we recognize them early in order to properly manage risk and work together toward positive outcomes." "We are laser-focused on growing good business relationships throughout the metropolitan area," said Abdul Hersiburane, President of MainStreet Bank.  "Our best source is our existing client base, as the quality of our service and attention to detail is second to none." Banking-as-a-ServiceThe headlines were bleak in 2023 for several of the banks providing banking-as-a-service to fintechs.  In one instance, consultant Kate Drew wrote, "The truth is many of the most jarring headlines have involved sponsor banks and fintech partners that had little to no relationship at all, and instead operated through a banking-as-a-service provider.  That model is all but dead.  In its place will likely emerge a more resilient proposition that puts the bank in the driver's seat when it comes to compliance and focuses on fintechs with sustainable businesses and realistic objectives in financial services."  Drew, Kate (December 12, 2023), Where is Banking-as-a Service Headed in 2024? Forbes Media L.L.C. "Our one miss was underestimating the amount of time it would take to build and launch the technology that we designed," said Dick.  "With hindsight, the timing is perfect as we launch a solution that is purpose-built to meet the compliance and safety and soundness needs required not only by us but also by the industry. We are the resilient solution fintechs have been waiting for." AvenuAvenu is the only embedded banking solution that connects our partners and their apps directly and seamlessly to our purpose-built Avenu core solution. We are not a sponsor bank without our own technology, and we are not a middleware software company without our own bank. We are Avenu, a leading financial technology company owned by an established community bank in the heart of Washington, D.C. Avenu's 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 creating 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 and ICS – solutions that provides multi-million-dollar FDIC insurance. Further information can be obtained by visiting mstreetbank.com/ics-cdars. 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, adverse changes caused by geopolitical risks at the national and global level, adverse impact of a local, national or global health crisis, 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.   MainStreet Bancshares, IncUNAUDITED CONSOLIDATED BALANCE SHEET INFORMATION(In thousands) March 31,2024 December31, 2023* September30, 2023 June 30,2023 March 31,2023 ASSETS Cash and cash equivalents Cash and due from banks $ 49,208 $ 53,581 $ 44,912 $ 67,700 $ 225,334 Federal funds sold 75,533 60,932 76,271 30,341 — Total cash and cash equivalents 124,741 114,513 121,183 98,041 225,334 Investment securities available for sale, at fair value 58,699 59,928 56,726 60,579 63,209 Investment securities held to maturity, at amortizedcost, net of allowance for credit losses of $0 for allperiods 17,251 17,275 17,565 17,590 17,616 Restricted equity securities, at amortized cost 23,924 24,356 20,619 20,304 22,436 Loans, net of allowance for credit losses of $16,531,$16,506, $15,626, $16,047, and $15,435, respectively 1,727,110 1,705,137 1,681,444 1,637,484 1,617,275 Premises and equipment, net 14,081 13,944 14,275 14,427 14,521 Accrued interest and other receivables 10,727 12,390 11,184 10,256 9,744 Computer software, net of amortization 15,691 14,657 13,373 12,266 10,559 Bank owned life insurance 38,609 38,318 38,035 37,763 37,503 Other assets 39,182 34,914 47,087 40,641 36,811 Total Assets $ 2,070,015 $ 2,035,432 $ 2,021,491 $ 1,949,351 $ 2,055,008 LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Non-interest bearing deposits $ 348,945 $ 364,606 $ 394,859 $ 388,992 $ 487,875 Interest bearing demand deposits 165,331 137,128 76,423 71,308 100,522 Savings and NOW deposits 46,036 45,878 46,550 51,294 53,499 Money market deposits 446,903 442,179 461,398 380,500 260,316 Time deposits 725,520 696,336 703,960 701,289 730,076 Total deposits 1,732,735 1,686,127 1,683,190 1,593,383 1,632,288 Federal funds purchased — 15,000 — 30,000 60,696 Federal Home Loan Bank advances — — — — 45,000 Subordinated debt 72,741 72,642 72,543 72,444 72,344 Other liabilities 41,418 40,146 52,015 43,016 39,692 Total Liabilities 1,846,894 1,813,915 1,807,748 1,738,843 1,850,020 Stockholders' Equity: Preferred stock 27,263 27,263 27,263 27,263 27,263 Common stock 29,514 29,198 29,188 29,177 29,185 Capital surplus 65,940 65,985 65,407 64,768 64,213 Retained earnings 108,334 106,549 102,694 97,646 91,991 Accumulated other comprehensive loss (7,930) (7,478) (10,809) (8,346) (7,664) Total Stockholders' Equity 223,121 221,517 213,743 210,508 204,988 Total Liabilities and Stockholders' Equity $ 2,070,015 $ 2,035,432 $ 2,021,491 $ 1,949,351 $ 2,055,008 *Derived from audited financial statements   MainStreet Bancshares, Inc UNAUDITED CONSOLIDATED STATEMENTS OF INCOME INFORMATION(In thousands, except share and per share data) Three Months Ended March 31,2024 December 31,2023 September30, 2023 June 30, 2023 March 31,2023 INTEREST INCOME: Interest and fees on loans $ 30,487 $ 30,849 $ 29,750 $ 28,855 $ 26,731 Interest on investment securities Taxable securities 435 451 459 407 518 Tax-exempt securities 270 268 268 265 264 Interest on federal funds sold 1,182 1,510 1,217 1,179 1,132 Total interest income 32,374 33,078 31,694 30,706 28,645 INTEREST EXPENSE: Interest on interest bearing demand deposits 1,860 1,058 240 251 343 Interest on savings and NOW deposits 157 146 145 147 108 Interest on money market deposits 5,178 5,639 4,156 2,926 1,203 Interest on time deposits 8,833 8,257 7,526 7,077 4,144 Interest on federal funds purchased 107 25 35 201 38 Interest on Federal Home Loan Bank advances 46 118 186 13 906 Interest on subordinated debt 820 828 828 820 812 Total interest expense 17,001 16,071 13,116 11,435 7,554 Net interest income 15,373 17,007 18,578 19,271 21,091 (Recovery of) provision for credit losses (195) 466 255 638 283 Net interest income after (recovery of) provision for creditlosses 15,568 16,541 18,323 18,633 20,808 NON-INTEREST INCOME: