MainStreet Bancshares Reports Strong First Quarter 2021 Earnings


MainStreet Bancshares, Inc. (Nasdaq: MNSB & MNSBP), the holding company for MainStreet Bank, reported net income of $5.5 million for the first quarter of 2021. Net income of $5.5 million represents a 12.95% Return on Average Equity (ROAE), a 1.32% Return on Average Assets (ROAA) and $0.65 per share of common stock (basic and diluted).

Net interest income was $13.5 million and noninterest income was $1.4 million for the quarter-ended March 31, 2021, an increase of 31% and 2% respectively over the same period in 2020. One-half of the increase in net interest income for the quarter came from Paycheck Protection Program (PPP) origination fees.

The Company's cost of funds for the quarter-ended March 31, 2021 was 1.11%, down from 2.11% from the same period a year ago. The Company is focused on reducing funding costs, increasing fee income, and improving operating efficiency. The Company's efficiency ratio was 52% for the quarter-ended March 31, 2021, a solid improvement from the 61% efficiency ratio reported for the same period a year ago.

Total assets were $1.7 billion on March 31, 2021, an increase of 31% from March 31, 2020. Net loans were $1.3 billion on March 31, 2021, which included $180 million in PPP loan balances. Asset quality continues strong with non-performing assets representing 0.08% of total assets on March 31, 2021.

Non-interest-bearing deposits represented 32% of the $1.5 billion in total deposits on March 31, 2021. Seventy-five percent of total deposits are core deposits – which is a significantly positive shift over the past eight quarters.

The Company continues to be strongly capitalized, and on April 6, 2021, the Company entered into a Subordinated Note Purchase Agreement for a private placement of $30 million in aggregate principal amount of 3.75% Fixed-to-Floating Rate Subordinated Notes due in 2031. The Company intends to use the net proceeds from the issuance of the Notes for general corporate purposes, including potential retirement of existing subordinated debt and capital to support the organic growth of its bank subsidiary, MainStreet Bank. Performance Trust Capital Partners, LLC served as sole placement agent for the offering.

"With 2020 behinds us, our clients are starting this year strong and confident," said Abdul Hersiburane, President of MainStreet Bank. "We are focused on aggressively adding new loan and deposit relationships to the mix."

"We are fortunate to be in such a robust and resilient market," said Jeff W. Dick, Chairman & CEO of MainStreet Bancshares, Inc. and MainStreet Bank. "With the addition of $30 million of very low-cost subordinated debt to our capital stack, we are well positioned to pursue continued growth opportunities."

ABOUT MAINSTREET BANK: MainStreet operates seven branches in Herndon, Fairfax, Fairfax City, 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 full complement of payment solutions for financial technology companies and has a team ready to create a perfect solution for their needs.

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, DC 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

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