MainStreet Bancshares, Inc. Delivers Solid Second Quarter 2026 Performance

Rhea-AI Summary

MainStreet Bancshares (Nasdaq: MNSB, MNSBP) reported second quarter 2026 net income of $4.7 million, up 14% sequentially, with earnings per common share of $0.58. Net interest margin expanded to 3.53%, supported by disciplined expense management and loan growth.

The company repurchased 207,000 common shares in the quarter, described as accretive to tangible book value, which rose to $26.30 per common share. June results produced annualized returns of 1.03% on average assets and 11.09% on average tangible common equity. Total assets reached $2.24 billion, with loans of $1.95 billion and deposits of $1.93 billion, yielding a loan-to-deposit ratio of 100%.

Nonperforming assets were 2.77% of total assets, loans 30–89 days past due and accruing were 0.79%, and there were zero net charge-offs for the quarter. Management said the company and bank remain strongly capitalized and highlighted $97 million year-over-year growth in owner-occupied commercial real estate loans.

Positive

• Net income $4.7 million, up 14% QoQ in Q2 2026
• EPS $0.58 for Q2 2026, versus $0.48 prior quarter
• Net interest margin 3.53% for Q2 2026, continued expansion
• 207,000 common shares repurchased, characterized as accretive to tangible book value
• Tangible book value $26.30 per common share at June 30, 2026
• Loans $1.95 billion, up 4.2% last 3 months and 9.0% year-over-year

Negative

• Nonperforming assets 2.77% of total assets at June 30, 2026
• Year-to-date $685,000 loss on sale of other real estate owned
• Provision for credit losses $585,000 in Q2 2026 versus a net release in prior-year quarter

News Explained

In the second-quarter report, MainStreet Bancshares disclosed total cash and cash equivalents of $109,281 thousand at June 30, 2026, down from $168,115 thousand at March 31, 2026, leaving less cash on the balance sheet.

News Market Reaction – MNSB

+1.62%

6 alerts

+1.62% News Effect

+$3M Valuation Impact

$166.98M Market Cap

0.6x Rel. Volume

On the day this news was published, MNSB gained 1.62%, reflecting a mild positive market reaction. Our momentum scanner triggered 6 alerts that day, indicating moderate trading interest and price volatility. This price movement added approximately $3M to the company's valuation, bringing the market cap to $166.98M at that time.

Data tracked by StockTitan Argus on the day of publication.

Market Context

MNSB's CFO recorded a 4,500-share sale on June 4 at $23.2. That insider activity adds context to thi...

Analysis

MNSB's CFO recorded a 4,500-share sale on June 4 at $23.2. That insider activity adds context to this earnings release; the principal risk to monitor is whether asset-quality metrics remain manageable.

Key Figures

Net income: $4.7 million Earnings per common share: $0.58 Net interest margin: 3.53% +5 more

8 metrics

Net income $4.7 million Second quarter 2026; 14% sequential increase

Earnings per common share $0.58 Second quarter 2026

Net interest margin 3.53% Second quarter 2026

Shares repurchased 207,000 shares Second quarter 2026

Tangible book value $26.30 per common share At June 30, 2026

New loans $78 million Booked during the quarter

Loan-to-deposit ratio 100% Second quarter 2026

Net charge-offs Zero During the quarter

Historical Context

5 past events · Latest: May 19 (Positive)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
May 19	Lending leadership appointment	Positive	-0.4%	Oliver James appointed to lead commercial and government contract lending.
Apr 20	1Q26 earnings report	Positive	+0.0%	First-quarter earnings included higher margin, buybacks, and loan growth.
Apr 13	Banking leadership promotion	Positive	+0.2%	David Murrell was promoted to executive vice president and chief banking officer.
Feb 20	Branch opening	Positive	+0.7%	MainStreet opened a new branch in Middleburg, Virginia.
Jan 26	2025 earnings report	Positive	-1.7%	Full-year results included profitability, margin expansion, and a share repurchase.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

MNSB's recent positive operating and expansion announcements produced mixed outcomes, including both gains and declines.

Key Terms

net interest margin, tangible book value, nonperforming assets, net charge-offs, +1 more

5 terms

net interest margin financial

"The net interest margin expansion continued, rising to 3.53%"

Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.

tangible book value financial

"increased tangible book value to $26.30 per common share"

Tangible book value is the accounting measure of a company’s net worth after removing intangible items like goodwill, patents and trademarks, leaving only physical and financial assets minus liabilities. For investors it offers a clearer view of the company’s hard-asset backing per share—like estimating the cash you could get by selling the furniture, machinery and cash in a house—helping gauge downside risk and whether a stock may be cheaply valued.

View in glossary

nonperforming assets financial

"Nonperforming assets to total assets settled at 2.77%"

Nonperforming assets are loans or investments that are not generating expected payments or returns because the borrower has fallen behind on payments or the investment has lost value. They matter to investors because a high level of nonperforming assets can indicate financial trouble for a bank or institution, potentially affecting its stability and profitability.

net charge-offs financial

"with zero net charge-offs during the quarter"

Net charge-offs are the amount of loans or credit a lender removes from its books as uncollectible after subtracting any money later recovered from previously written-off accounts. Think of it like a store writing off unpaid tabs but getting back a few dollars later — the net figure shows the real loss. Investors watch this to judge a lender’s loan quality, future profits and how much capital may be needed to cover bad debts.

loan-to-deposit ratio financial

"resulting in a 100% loan-to-deposit ratio"

Loan-to-deposit ratio measures how much a bank has lent out compared with the money customers have deposited, expressed as a percentage. Think of it like the share of a household’s savings that has been loaned to others: a higher ratio can boost earnings but reduce cash on hand and increase risk, while a lower ratio means more liquidity but potentially lower returns—key for investors assessing a bank’s balance of profit and safety.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Disciplined Expense Management and Healthy NIM Drive Sequential Income Growth

FAIRFAX, Va., July 20, 2026 (GLOBE NEWSWIRE) -- MainStreet Bancshares, Inc. (Nasdaq: MNSB & MNSBP), the financial holding company for MainStreet Bank, reported net income of $4.7 million for the quarter-ended June 30, 2026, a 14% increase from the previous quarter, resulting in earnings per common share of $0.58. The net interest margin expansion continued, rising to 3.53% for the quarter.

The Company repurchased 207,000 shares of common stock during the quarter, all of which were accretive to tangible book value. The combination of accretive share repurchases and quarterly earnings increased tangible book value to $26.30 per common share. The Company and Bank remain strongly capitalized.

“We are pleased to report that the Company’s performance continues to be directionally consistent. The month of June produced an annualized return on average assets of 1.03% and an annualized return on average tangible common equity of 11.09%, which is progressing toward expectations,” said Jeff W. Dick, Chairman and CEO of MainStreet Bancshares, Inc. and MainStreet Bank.

“The lenders booked $78 million in new loans and the business bankers kept pace with deposit growth, resulting in a 100% loan-to-deposit ratio,” said Abdul Hersiburane, President of MainStreet Bank. “Our year-over-year growth of $97 million in owner-occupied commercial real estate reflects our focus on operating businesses that bring strong relationships. We’re also excited about the opportunities surfacing for our commercial and government contracting team.”

Nonperforming assets to total assets settled at 2.77% while loans 30-89 days past due and accruing dropped to 0.79% for the quarter. Chris Johnston, Chief Credit Officer of MainStreet Bank, expanded, “Our asset quality metrics remain manageable with zero net charge-offs during the quarter. We are steadfast in the speedy resolution of our nonperforming assets.”

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)
	June 30, 2026				March 31, 2026				December 31, 2025*				September 30, 2025				June 30, 2025
ASSETS
Cash and due from banks	$	30,125			$	33,044			$	25,179			$	23,940			$	20,888
Interest-bearing deposits at other financial institutions		751				783				1,276				1,315				864
Federal funds sold		78,405				134,288				136,301				102,039				111,532
Total cash and cash equivalents		109,281				168,115				162,756				127,294				133,284
Investment securities available for sale (AFS), at fair value		57,114				57,021				57,954				58,338				56,138
Investment securities held to maturity (HTM), at amortized cost, net of allowance for credit losses of $0 for all periods		13,785				13,790				13,798				14,293				14,846
Restricted securities, at amortized cost		6,998				6,998				7,005				7,005				7,005
Loans, net of allowance for credit losses of $19,306, $19,049, $19,308, $18,831, and $19,057, respectively		1,928,372				1,850,961				1,841,833				1,788,243				1,767,432
Premises and equipment, net		13,192				13,430				13,608				13,212				13,344
Other real estate owned, net		900				1,094				1,697				—				—
Property held for sale, at fair value		2,760				2,745				2,728				3,225				3,225
Accrued interest and other receivables		14,575				13,453				14,518				13,622				15,023
Bank owned life insurance		41,396				41,071				40,752				40,433				40,117
Other assets		54,712				54,615				56,020				59,124				64,367
Total Assets	$	2,243,085			$	2,223,293			$	2,212,669			$	2,124,789			$	2,114,781
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Non-interest bearing deposits	$	363,883			$	359,113			$	378,694			$	324,717			$	330,045
Interest-bearing demand deposits		114,087				120,700				119,407				123,231				124,090
Savings and NOW deposits		144,783				138,667				121,905				125,214				116,069
Money market deposits		542,687				545,804				499,334				458,946				463,904
Time deposits		768,865				750,441				779,844				778,727				764,439
Total deposits		1,934,305				1,914,725				1,899,184				1,810,835				1,798,547
Subordinated debt, net		70,100				70,035				69,936				69,837				71,238
Other liabilities		24,244				23,549				24,958				25,754				31,526
Total Liabilities		2,028,649				2,008,309				1,994,078				1,906,426				1,901,311
Stockholders’ Equity:
Preferred stock		27,263				27,263				27,263				27,263				27,263
Common stock		27,431				28,247				29,008				29,833				29,825
Capital surplus		57,484				61,045				66,531				68,895				68,261
Retained earnings		107,777				104,360				101,557				98,793				95,585
Accumulated other comprehensive loss		(5,519	)			(5,931	)			(5,768	)			(6,421	)			(7,464	)
Total Stockholders’ Equity		214,436				214,984				218,591				218,363				213,470
Total Liabilities and Stockholders’ Equity	$	2,243,085			$	2,223,293			$	2,212,669			$	2,124,789			$	2,114,781
*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, 2026				June 30, 2025				June 30, 2026				March 31, 2026				December 31, 2025				September 30, 2025				June 30, 2025
INTEREST INCOME:
Interest and fees on loans	$	60,256			$	63,554			$	30,738			$	29,518			$	29,969			$	30,688			$	32,443
Interest on investment securities
Taxable securities		841				851				423				418				421				435				431
Tax-exempt securities		576				530				289				287				276				270				267
Interest on interest-bearing deposits at other financial institutions		20				32				10				10				10				11				10
Interest on federal funds sold		1,615				2,282				630				985				1,198				1,060				1,135
Total interest income		63,308				67,249				32,090				31,218				31,874				32,464				34,286
INTEREST EXPENSE:
Interest on interest-bearing demand deposits		1,752				2,052				862				890				1,064				1,071				1,004
Interest on savings and NOW deposits		810				612				421				389				390				467				391
Interest on money market deposits		8,478				9,983				4,487				3,991				4,246				4,623				4,707
Interest on time deposits		14,808				17,626				7,158				7,650				8,244				8,369				8,595
Interest on federal funds purchased		109				65				84				25				—				28				—
Interest on subordinated debt		1,625				1,611				846				779				788				804				799
Total interest expense		27,582				31,949				13,858				13,724				14,732				15,362				15,496
Net interest income		35,726				35,300				18,232				17,494				17,142				17,102				18,790
Provision for credit losses		454				(543	)			585				(131	)			328				144				(543	)
Net interest income after provision for credit losses		35,272				35,843				17,647				17,625				16,814				16,958				19,333
NON-INTEREST INCOME:
Deposit account service charges		1,125				1,068				552				573				559				557				538
Bank owned life insurance income		644				610				325				319				319				316				308
Gain on retirement of subordinated debt		—				128				—				—				—				145				68
Gain on equity securities		—				103				—				—				—				—				103
Loss on sale of other real estate owned		(685	)			—				—				(685	)			—				—				—
Other non-interest income		217				96				17				200				22				104				49
Total non-interest income		1,301				2,005				894				407				900				1,122				1,066
NON-INTEREST EXPENSES:
Salaries and employee benefits		15,056				16,664				7,505				7,551				7,557				7,366				8,279
Furniture and equipment expenses		1,526				2,157				768				758				884				799				1,141
Advertising and marketing		675				1,011				379				296				469				571				530
Occupancy expenses		617				714				252				365				293				400				318
Outside services		905				2,463				445				460				688				625				1,290
Administrative expenses		448				499				207				241				238				259				270
Other real estate owned expenses		244				—				24				220				—				—				—
Other operating expenses		5,719				5,551				2,936				2,783				2,696				2,647				2,917
Total non-interest expenses		25,190				29,059				12,516				12,674				12,825				12,667				14,745
Income before income tax expense		11,383				8,789				6,025				5,358				4,889				5,413				5,654
Income tax expense		2,615				1,746				1,357				1,258				836				896				1,064
Net income		8,768				7,043				4,668				4,100				4,053				4,517				4,590
Preferred stock dividends		1,078				1,078				539				539				539				539				539
Net income available to common shareholders	$	7,690			$	5,965			$	4,129			$	3,561			$	3,514			$	3,978			$	4,051
Earnings per common share, basic and diluted	$	1.05			$	0.78			$	0.58			$	0.48			$	0.46			$	0.52			$	0.53
Weighted average number of common shares, basic and diluted		7,329,939				7,670,623				7,177,264				7,484,310				7,564,723				7,704,639				7,704,677

UNAUDITED LOAN, DEPOSIT AND BORROWING DETAIL (In thousands)
	June 30, 2026								March 31, 2026								June 30, 2025								Percentage Change
	$ Amount				% of Total				$ Amount				% of Total				$ Amount				% of Total				Last 3 Mos				Last 12 Mos
LOANS:
Construction and land development loans	$	312,885				16.0	%		$	299,043				16.0	%		$	328,351				18.2	%			4.6	%			-4.7	%
Residential real estate loans		465,373				23.8	%			448,290				23.9	%			452,458				25.3	%			3.8	%			2.9	%
Commercial real estate loans		1,071,008				54.9	%			1,024,695				54.7	%			911,390				50.9	%			4.5	%			17.5	%
Commercial and industrial loans		101,433				5.2	%			100,782				5.3	%			97,699				5.5	%			0.6	%			3.8	%
Consumer loans		1,278				0.1	%			1,232				0.1	%			1,075				0.1	%			3.7	%			18.9	%
Total Gross Loans	$	1,951,977				100.0	%		$	1,874,042				100.0	%		$	1,790,973				100.0	%			4.2	%			9.0	%
Less: Allowance for credit losses		(19,306	)							(19,049	)							(19,057	)
Net deferred loan fees		(4,299	)							(4,032	)							(4,484	)
Net Loans	$	1,928,372							$	1,850,961							$	1,767,432
DEPOSITS:
Non-interest bearing deposits	$	363,883				18.8	%		$	359,113				18.8	%		$	330,045				18.4	%			1.3	%			10.3	%
Interest-bearing deposits:
Demand deposits		114,087				5.9	%			120,700				6.3	%			124,090				6.9	%			-5.5	%			-8.1	%
Savings and NOW deposits		144,783				7.5	%			138,667				7.2	%			116,069				6.5	%			4.4	%			24.7	%
Money market deposits		542,687				28.1	%			545,804				28.5	%			463,904				25.8	%			-0.6	%			17.0	%
Time deposit $250,000 or more		512,878				26.5	%			478,971				25.0	%			490,692				27.2	%			7.1	%			4.5	%
Time deposit less than $250,000		255,987				13.2	%			271,470				14.2	%			273,747				15.2	%			-5.7	%			-6.5	%
Total Deposits	$	1,934,305				100.0	%		$	1,914,725				100.0	%		$	1,798,547				100.0	%			1.0	%			7.5	%
BORROWINGS:
Subordinated debt, net	$	70,100				100.0	%		$	70,035				100.0	%		$	71,238				100.0	%			0.1	%			-1.6	%
Total Borrowings	$	70,100				100.0	%		$	70,035				100.0	%		$	71,238				100.0	%			0.1	%			-1.6	%
Total Deposits and Borrowings	$	2,004,405							$	1,984,760							$	1,869,785								1.0	%			7.2	%
Core customer funding sources (1)	$	1,391,834				69.4	%		$	1,399,602				70.5	%		$	1,329,804				71.1	%			-0.6	%			4.7	%
Brokered and listing service sources (2)		542,471				27.1	%			515,123				26.0	%			468,743				25.1	%			5.3	%			15.7	%
Subordinated debt, net (3)		70,100				3.5	%			70,035				3.5	%			71,238				3.8	%			0.1	%			-1.6	%
Total Funding Sources	$	2,004,405				100.0	%		$	1,984,760				100.0	%		$	1,869,785				100.0	%			1.0	%			7.2	%

(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, 2026												For the three months ended June 30, 2025
	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)	$	1,919,481			$	30,738				6.42	%		$	1,819,307			$	32,443				7.15	%
Securities:
Taxable		49,222				423				3.45	%			52,911				431				3.27	%
Tax-exempt		36,123				366				4.06	%			35,434				338				3.83	%
Interest-bearing deposits at other financial institutions		1,154				10				3.48	%			756				10				5.31	%
Federal funds sold		74,355				630				3.40	%			107,583				1,135				4.23	%
Total interest-earning assets	$	2,080,335			$	32,167				6.20	%		$	2,015,991			$	34,357				6.84	%
Other assets		126,881												116,675
Total assets	$	2,207,216											$	2,132,666
Liabilities and Stockholders’ Equity:
Interest-bearing liabilities:
Interest-bearing demand deposits	$	114,088			$	862				3.03	%		$	112,579			$	1,004				3.58	%
Savings and NOW deposits		141,176				421				1.20	%			119,163				391				1.32	%
Money market deposits		538,719				4,487				3.34	%			479,267				4,707				3.94	%
Time deposits		741,846				7,158				3.87	%			784,824				8,595				4.39	%
Total interest-bearing deposits	$	1,535,829			$	12,928				3.38	%		$	1,495,833			$	14,697				3.94	%
Federal funds purchased		8,573				84				3.93	%			1				—				0.00	%
Subordinated debt, net		70,084				846				4.84	%			71,199				799				4.50	%
Total interest-bearing liabilities	$	1,614,486			$	13,858				3.44	%		$	1,567,033			$	15,496				3.97	%
Demand deposits and other liabilities		378,871												354,552
Total liabilities	$	1,993,357											$	1,921,585
Stockholders’ Equity		213,859												211,081
Total Liabilities and Stockholders’ Equity	$	2,207,216											$	2,132,666
Interest Rate Spread										2.76	%											2.87	%
Net Interest Income					$	18,309											$	18,861
Net Interest Margin										3.53	%											3.75	%

(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, 2026												For the six months ended June 30, 2025
	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)	$	1,891,701			$	60,256				6.42	%		$	1,834,314			$	63,554				6.99	%
Securities:
Taxable		49,481				841				3.43	%			53,050				851				3.23	%
Tax-exempt		36,143				729				4.07	%			35,317				671				3.83	%
Interest-bearing deposits at other financial institutions		1,129				20				3.57	%			1,393				32				4.63	%
Federal funds sold		87,649				1,615				3.72	%			108,612				2,282				4.24	%
Total interest-earning assets	$	2,066,103			$	63,461				6.19	%		$	2,032,686			$	67,390				6.69	%
Other assets		127,494												111,326
Total assets	$	2,193,597											$	2,144,012
Liabilities and Stockholders’ Equity:
Interest-bearing liabilities:
Interest-bearing demand deposits	$	116,842			$	1,752				3.02	%		$	111,999			$	2,052				3.69	%
Savings and NOW deposits		138,072				810				1.18	%			93,649				612				1.32	%
Money market deposit		515,424				8,478				3.32	%			508,319				9,983				3.96	%
Time deposits		757,582				14,808				3.94	%			791,399				17,626				4.49	%
Total interest-bearing deposits	$	1,527,920			$	25,848				3.41	%		$	1,505,366			$	30,273				4.06	%
Federal funds purchased		5,582				109				3.94	%			2,790				65				4.70	%
Subordinated debt, net		70,040				1,625				4.68	%			72,116				1,611				4.50	%
Total interest-bearing liabilities	$	1,603,542			$	27,582				3.47	%		$	1,580,272			$	31,949				4.08	%
Demand deposits and other liabilities		374,230												354,133
Total liabilities	$	1,977,772											$	1,934,405
Stockholders’ Equity		215,825												209,607
Total Liabilities and Stockholders’ Equity	$	2,193,597											$	2,144,012
Interest Rate Spread										2.72	%											2.61	%
Net Interest Income					$	35,879											$	35,441
Net Interest Margin										3.50	%											3.52	%

(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 per share data)
	At or For the Three Months Ended								At or For the Six Months Ended
	June 30, 2026				June 30, 2025				June 30, 2026				June 30, 2025
Per share Data and Shares Outstanding
Earnings per common share (basic and diluted)	$	0.58			$	0.53			$	1.05			$	0.78
Book value per common share	$	26.30			$	24.17			$	26.30			$	24.17
Weighted average common shares (basic and diluted)		7,177,264				7,704,677				7,329,939				7,670,623
Common shares outstanding at end of period		7,117,438				7,704,037				7,117,438				7,704,037
Performance Ratios
Return on average assets (annualized)		0.85	%			0.86	%			0.81	%			0.66	%
Return on average equity (annualized)		8.75	%			8.72	%			8.19	%			6.78	%
Return on average common equity (annualized)		8.88	%			8.84	%			8.22	%			6.60	%
Yield on earning assets (FTE)(2) (annualized)		6.20	%			6.84	%			6.19	%			6.69	%
Cost of interest-bearing liabilities (annualized)		3.44	%			3.97	%			3.47	%			4.08	%
Net interest spread (FTE)(2) (annualized)		2.76	%			2.87	%			2.72	%			2.61	%
Net interest margin (FTE)(2) (annualized)		3.53	%			3.75	%			3.50	%			3.52	%
Non-interest income as a percentage of average assets (annualized)		0.16	%			0.20	%			0.12	%			0.19	%
Non-interest expense to average assets (annualized)		2.27	%			2.77	%			2.32	%			2.73	%
Efficiency ratio(3)		65.44	%			74.26	%			68.03	%			77.90	%
Allowance for Credit Losses
Allowance for credit losses (ACL)
Beginning balance, ACL - loans	$	19,049			$	19,460			$	19,308			$	19,450
Add: recoveries		14				747				36				757
Less: charge-offs		—				(622	)			(281	)			(622	)
Add: provision for credit losses - loans		243				(528	)			243				(528	)
Ending balance, ACL - loans	$	19,306			$	19,057			$	19,306			$	19,057
Beginning balance, reserve for unfunded commitment (RUC)	$	204			$	287			$	335			$	287
Provision for unfunded commitments, net		342				(15	)			211				(15	)
Ending balance, RUC	$	546			$	272			$	546			$	272
Total allowance for credit losses	$	19,852			$	19,329			$	19,852			$	19,329
Allowance for credit losses on loans to total gross loans		0.99	%			1.06	%			0.99	%			1.06	%
Allowance for credit losses on loans to non-performing loans		31.50	%			2.01X			31.50		%		2.01X
Net charge-offs to average gross loans (annualized)		0.00	%			(0.03	)%			0.03	%			(0.01	)%
Concentration Ratios
Commercial real estate loans to total capital (4)		379.34	%			365.89	%			379.34	%			365.89	%
Construction loans to total capital (5)		103.48	%			108.84	%			103.48	%			108.84	%
Past due and Non-performing Assets
Loans 30-89 days past due and accruing to total gross loans		0.79	%			2.11	%			0.79	%			2.11	%
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		3.14	%			0.40	%			3.14	%			0.40	%
Other real estate owned, net	$	900			$	—			$	900			$	—
Non-performing loans	$	61,289			$	7,169			$	61,289			$	7,169
Non-performing assets to total assets		2.77	%			0.34	%			2.77	%			0.34	%
Regulatory Capital Ratios (Bank only) (1)
Total risk-based capital ratio		15.14	%			16.44	%			15.14	%			16.44	%
Tier 1 risk-based capital ratio		14.14	%			15.39	%			14.14	%			15.39	%
Leverage ratio		12.78	%			13.21	%			12.78	%			13.21	%
Common equity tier 1 ratio		14.14	%			15.39	%			14.14	%			15.39	%
Other information
Common shares closing stock price	$	24.69			$	18.90			$	24.69			$	18.90
Total equity / total assets		9.56	%			10.09	%			9.56	%			10.09	%
Average equity / average assets		9.69	%			9.90	%			9.84	%			9.78	%
Number of full time equivalent employees		166				174				166				174
Number of full service branch offices		7				6				7				6

(1	)	Regulatory capital ratios as of June 30, 2026 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,
	2026				2025				2026				2025
Net interest margin (FTE)
Net interest income (GAAP)	$	18,232			$	18,790			$	35,726			$	35,300
FTE adjustment on tax-exempt securities		77				71				153				141
Net interest income (FTE) (non-GAAP)		18,309				18,861				35,879				35,441
Average interest-earning assets		2,080,335				2,015,991				2,066,103				2,032,686
Net interest margin (GAAP)		3.52	%			3.74	%			3.49	%			3.50	%
Net interest margin (FTE) (non-GAAP)		3.53	%			3.75	%			3.50	%			3.52	%

	For the three months ended June 30,								For the six months ended June 30,
	2026				2025				2026				2025
Yield on earning assets (FTE)
Total interest income (GAAP)	$	32,090			$	34,286			$	63,308			$	67,249
FTE adjustment on tax-exempt securities		77				71				153				141
Total interest income (FTE) (non-GAAP)		32,167				34,357				63,461				67,390
Average interest-earning assets		2,080,335				2,015,991				2,066,103				2,032,686
Yield on earning assets (GAAP)		6.19	%			6.82	%			6.18	%			6.67	%
Yield on earning assets (FTE) (non-GAAP)		6.20	%			6.84	%			6.19	%			6.69	%

	For the three months ended June 30,								For the six months ended June 30,
	2026				2025				2026				2025
Net interest spread (FTE)
Yield on earning assets (GAAP)		6.19	%			6.82	%			6.18	%			6.67	%
Yield on earning assets (FTE) (non-GAAP)		6.20	%			6.84	%			6.19	%			6.69	%
Yield on interest-bearing liabilities (GAAP)		3.44	%			3.97	%			3.47	%			4.08	%
Net interest spread (GAAP)		2.75	%			2.85	%			2.71	%			2.59	%
Net interest spread (FTE) (non-GAAP)		2.76	%			2.87	%			2.72	%			2.61	%

Contact: Billy Freesmeier
Chief of Staff
(703) 481-4579 

FAQ

How did MainStreet Bancshares (MNSB) perform in Q2 2026?

MainStreet Bancshares reported Q2 2026 net income of $4.7 million, a 14% increase from Q1 2026. According to MainStreet Bancshares, earnings per common share were $0.58, supported by net interest margin expansion to 3.53% and disciplined expense management.

What were MainStreet Bancshares' earnings per share for the quarter ended June 30, 2026?

Earnings per common share for Q2 2026 were $0.58 for MainStreet Bancshares. According to MainStreet Bancshares, this compares with $0.48 in the previous quarter, reflecting higher net income of $4.7 million and continued net interest margin expansion.

Did MainStreet Bancshares (MNSB) repurchase shares in Q2 2026 and how did it impact tangible book value?

MainStreet Bancshares repurchased 207,000 common shares in Q2 2026, described as accretive to tangible book value. According to MainStreet Bancshares, tangible book value increased to $26.30 per common share, supported by both repurchases and quarterly earnings.

What was MainStreet Bancshares' net interest margin in the second quarter of 2026?

MainStreet Bancshares reported a net interest margin of 3.53% for Q2 2026. According to MainStreet Bancshares, this reflected ongoing margin expansion, with net interest income of $18.2 million for the quarter and a 100% loan-to-deposit ratio driven by loan and deposit growth.

How strong were MainStreet Bancshares' asset quality metrics in Q2 2026?

Asset quality included nonperforming assets at 2.77% of total assets and loans 30–89 days past due at 0.79%. According to MainStreet Bancshares, there were zero net charge-offs during the quarter and management described asset quality metrics as manageable.

What returns on assets and equity did MainStreet Bancshares achieve in June 2026?

For June 2026, annualized return on average assets was 1.03% and annualized return on average tangible common equity was 11.09%. According to MainStreet Bancshares, these June figures indicate progress toward the company’s performance expectations for profitability.

How did MainStreet Bancshares' loan portfolio and deposits change by June 30, 2026?

Total gross loans reached $1.95 billion and deposits totaled $1.93 billion at June 30, 2026. According to MainStreet Bancshares, loans grew 4.2% over three months and 9.0% year-over-year, while the loan-to-deposit ratio stood at 100%.