Mainstreet Bancshares, Inc. · NASDAQ:MNSB
Mainstreet Bancshares — Q2 2025 Earnings Presentation
27 slides from Mainstreet Bancshares's earnings presentation, Jul 22, 2025
Slide 1: 2025 Second Quarter
July 22, 2025 2025 Second Quarter = MainStreetBancshares, Inc.
Slide 2: Forward-looking statements and additional information
Forward- looking statements and additional information Statements in this presentation which are not historical are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Privat
Slide 3: Diverse market
Diverse market Major universities Federal hub * Georgetown * Defense contracting * ow * CAC! * American * Lockheed Martin # Howard *FT * George Mason * SAIC * Gollaudet * Cathol © UMUC # Marymount Resident fortune 500 Other notable © Under Armour ‘ Historic trend of low unemployment * Amazon compare
Slide 4: Market by the numbers
Market by the numbers The DC metropolitan Median household Average home listing area remains vibrant with Ineome! rice: Opportunity Median days on the Federal employees in market? the DMV? ' Federal Reserve Economic Data - Year End 2023 - Fairfax County, Falls. (Church, DC, MD ~Average 2 Federal Res
Slide 5: Strategic balance sheet management
Strategic balance sheet management May 2004 ssw Placement Stock sas $83 — 2004 2005 August 2008, soem Private Placement ot common Stock & Bogan trading on OTe Market sios $148 2008 2007 Jonuary 2077 SEM sub- tering Dec 2014 uiyzony October 2017 S128M —Formea ‘SRAM Private Private Holding ‘Placement
Slide 6: 21+ years of service to the Washington, DC Metropolitan area
21+ years of service to the Washington, DC Metropolitan area 2.1B Total Assets eBank established: 2004 Headquarters: Fairfax, VA Full-time employees: 174 6 *Assets per employee: $/22mm Branches eHolding company established: 2016
Slide 7: Share performance
Share performance Nasdaq capital market: MNSB Close common stock RUSSELL 2000 — “ Price / tangible bool 0, INDEX aiid uae 78% Common shares 4 outstanding 7,104,037 MainStreet : fp i Market capitalization $146 million Bancshares, Inc. Tangible book value $2417 Nasdaq capital market: MNSBP Close prefe
Slide 8: 2025 second quarter financial summary
2025 first quarter financial summary 2Q25 1Q25 4Q24 3Q24 2Q24 2 Bs $0.53 $0.25 ($2.20) ($0.04) $0.27 a ROAA? 0.86% 0.46% (2.80%) 0.05% 0.50% & ROATCE? 8.84% 4.29% (36.51%) (0.60%) 4.64% CB Net interest margin'22 3.75% 3.30% 2.96% 3.05% 3.20% Net loans ($millions) $1.767 $1.812 $1.811 $1.776 $1.779 @
Slide 9: One-time adjustments
One-time adjustments expenses and revenue Second quarter 2025 Nonrecurring expenses! ($1.8 million) Nonrecurring revenue? $1.5 million Net adjustment ($0.3 million) | Associated with a return to core banking 2 Represents the collection of interest and fees on a nonperforming asset and recognition of
Slide 10: Strong liquidity management
Strong liquidity management Liquidity coverage ratio (LCR)! Core deposit ratio 2 Loan / Deposit Ratio FDIC insured / total deposits ? High quality liquid assets 4 Secured line available balance Unsecured line of credit Total available funding sources 2Q25 1Q25 4Q24 108% 225% 164% 74% 70% 76% 99% 96%
Slide 11: Solid net interest margin
3.49% Core net interest margin yields 19 basis point increase from previous quarter and 29 basis point increase year over year Solid net interest margin Quarterly net interest margin ! —*=Core Net interest Margin Tox-equivalent yield == -Reported Net interest Margin
Slide 12: Our Business: Effective deposit structure
Our Business Banking team is connecting and forging new relationships with customers in our market. Effective deposit structure
Slide 13: Increasing level of non-interest bearing and low-cost deposits
Increasing level of non-interest bearing and low-cost deposits Balance Percent Weighted Type illions) of total avg. rate ted maturity Non-interest bearing DDA $330 25% 0.00% nla Low-cost transactional ' $126 9% 1.07% nla Interest bearing $437 33% 3.78% nia Term $437 33% 4.25% 6 months Total core dep
Slide 14: We are committed to drive operating costs down
G5 We are committed to drive operating costs down as we focus on core community banking 2025 going forward 2025 expense run rate 24 quarter quarter Actual! Estimate $12.9 million $12.9 million * excludes nonrecurring expenses 4' quarter Estimate $12.6 million “
Slide 15: Stock buyback program
Stock buyback program The Company has an active share repurchase plan eonge in-place, and the e! million capacity is $3.1 . : million available capacity A]
Slide 16: Diversified loan portfolio
Diversified loan portfolio Construction $1.8B ie ‘Owner-Occupiod CRE Multi-Family 2% 1" 88% of construction loans have a suitable interest reserve deposit held at the bank 15 “
Slide 17: Effectively managing CRE concentrations
Effectively managing CRE concentrations Investor CRE as a % of total capital se 388% 4924 struction 16
Slide 18: 2626 Pennsylvania Ave NW
2626 Pennsylvania Ave NW Washington, DC Bank collected 100% owed on 2626 Penn Non-Accrual Balance $11.2 million Charge-Off (3Q24) +$0.7 million Fees & Interest +$1.3 million Total amount $13.2 million Collected -$13.2 million Remaining balance $0.0 million “ 7
Slide 19: Gov Con relationships contribute strong deposits
Gov Con relationships contribute strong deposits 29 asset-based lines of credit $13.0M Total outstanding $79.2M Total committed 4term loans $2.5M Total outstanding $75.5 =55" million Total average DDA deposits attributable to government contract loan relationships “
Slide 20: Loan pricing positioned for stable or falling rates
Loan pricing positioned for stable or falling rates 45% with a weighted average floor rate of 6.50% June 30, 2025 total loans $1.8B * Loans include all fixed-rate and floating loans with a rate repricing date more than 6-months from quarter-end 2 Loans are loans that can reprice immediately or have
Slide 21: Strong underwriting produces quality market demand
Strong underwriting produces quality market demand YTD 2025 production $97 million “
Slide 22: The average new loan size is indicative of well-distributed credit risk
The average new loan size is indicative of well- distributed credit tisk management Process. Good loan metrics lmmAverage New Loan size $46,810 $44,488 $45,252 —tegol Lending mit $42,986 $34,104 $28,430 $23,684 $2364 $3323, $2320 as $2309 S131 31725 fF o 2018 2019-2020» 2021 «2022-2023 2024 ©2025 Av
Slide 23: Nominal level of classified loans and nonperforming assets
Nominal level of classified loans and nonperforming assets 1.8% 0 4y, Classified / gross loans NPAs / total assets 22
Slide 24: Earning asset stress-test shows good results
Earning asset stress-test shows good results Pre- and post-stress capital ratios 158% 1e1% 15.9% 16.0% 14% 14.6% 14.8% BAe 13.6% B7% 12.5% 12.4% BS 7.0% 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 Stress Loss Estimates ($000) $31840 38,667 $42,476 «$42,476 «$4504 + $44,183 $46,790 —Pre stress CETI/RBC |
Slide 25: Financial highlights
Financial highlights Year-End Financials Quarter-End Financials In $000 unless otherwise Q2'25 noted 2021 2022 2023 «2024 LTM Q2'24 Q3'24 Q4'24 QI'25 ea a | | eros rere «| ore ee ae: | Saari Sane a | hese ees ieee a | ln, m emer: = | fs Sobiegy: 3 | fee Pe crcl memes erm Gaeta oor a ae a as | Beare
Slide 26: Financial highlights continued
Financial highlights continued Year-End Financials Quarter-End Financials In $000 unless otherwise Q2'25 noted 2022 «2023 «2024 LIM Q2'24 Q3'24 Q4'24 QI'25 Pertormance Metrics (%) rosa 12 sss our] ae} 050-008-280 oa fost ase 368258 ane] aol © 470« 0a? aaa ROATCE to Cemmon sores v2 gaat 079] ame] 58-
Slide 27: Definitions
Definitions ACL AocI cen) ceTI- RBC CRE EPS GAAP LcR Allowance for Credit Losses Accumulated Other Comprehensive Income Common Equity Tier-1 Common Equity Tier-1 Risk-Based Capital Commercial Real Estate Earnings Per Share Generally Accepted Accounting Principles Liquidity Coverage Ratio LM $MM NCOs
MainStreet Bancshares — Q2 2025 Earnings Presentation on 6ix