main20221222

Exhibit 99.1

PRESS RELEASE		Contact: Debra Cope
January 23, 2023, 8:00 AM ET		Director of Corporate Communications
		(703) 481-4599

MainStreet Bancshares, Inc. Achieves Record Results for 2022

Company’s Net Income Climbs 20% to $26.7 Million; NIM Reaches 4.19%

FAIRFAX, Va., Jan. 23, 2023 /PRNewswire/ -- MainStreet Bancshares, Inc. (Nasdaq: MNSB & MNSBP), the holding company for MainStreet Bank, reported record net income of $26.7 million for 2022, a 20.3% increase from a year earlier. Year-end results represent:

●

13.98% return on average equity

●

1.53% return on average assets

●

4.19% net interest margin

	●	$3.26 earnings per common share (basic and diluted)
	●	$21.75 tangible book value per common share

“There is no doubt that 2022 was a banner year for the Company,” said Jeff W. Dick, Chairman and CEO of MainStreet Bancshares Inc. and MainStreet Bank. “Quarter to quarter, we set performance records in nearly every activity and metric. We achieved this while maintaining our strong focus on credit quality and while building Avenu™, our innovative embedded banking software solution. The markets rewarded our upward momentum, efficiency, and focus on innovation with solid interest in our shares and improved valuations.”

Net interest income reached $70 million in 2022, up 30.8% from the previous year’s $53.5 million. As the Federal Reserve undertook seven interest rate increases in 2022, MainStreet Bank benefited from having an asset-sensitive balance sheet. This drove the average net interest margin (NIM) higher by 84 basis points to 4.19% for the year ended December 31, 2022, versus 3.35% a year earlier. On a quarterly basis, the NIM widened to 4.70% in the fourth quarter of 2022, up from 3.49% in the prior year’s fourth quarter.

“We came into 2022 extremely well prepared for the interest rate hikes that materialized,” said Thomas J. Chmelik, Chief Financial Officer of MainStreet Bancshares Inc. and MainStreet Bank. “As we enter 2023, we anticipate fewer and smaller rate hikes as the Fed makes progress toward dampening inflation, and this should yield somewhat more level interest rates this year. We are now taking steps to position our balance sheet accordingly.” He noted that the level of Accumulated Other Comprehensive Income (AOCI) for the Company remains low, at -4.3% of total capital.

The loan portfolio grew 17.8% to $1.58 billion in 2022, up from $1.34 billion at the end of 2021. Loan quality remained exceptional, with zero nonperforming assets. Total deposits climbed 7% to $1.51 billion, up from $1.41 billion at the end of 2021. Non-interest-bearing deposits represent 36.4% of the total, and 69% of total deposits are core deposits. The bank’s total assets grew 16.9% to reach $1.93 billion at year-end 2022, versus $1.65 billion a year earlier.

“We continue to experience solid commercial loan demand and deposit growth in our DC Metro market, and loan demand was particularly brisk in the fourth quarter,” said Abdul Hersiburane, President of MainStreet Bank. “Our local economy is supported by a technologically advanced workforce and a large and steady federal employment base, and these factors mitigate the effects of any slowdown. We remain encouraged by the opportunities that we see to serve our community’s growing businesses and organizations. Because we maintain rigorous underwriting standards, our credit quality remains pristine.”

The Company's efficiency ratio improved to 52% for the year, from 55% at the end of 2021. This improvement occurred even as the Company was making significant investments in Avenu™, with the hiring process accelerating as the subsidiary moves toward being fully operational in 2023.

Avenu™ Makes Major Strides, Onboards First Client

Avenu™ continues to make strides and has onboarded its first customer into its sandbox. In recent weeks Avenu™ has stood up its production site and is in the process of finalizing vendor certifications and conducting end-to-end testing. Avenu™ connects partners and their apps directly and seamlessly to MainStreet Bank’s banking core. These developments bring Avenu™ several steps closer to its objective of accelerating MainStreet Bank’s deposit growth to support expanded lending.

“As technology evolves, consumers expect to be able to conduct transactions seamlessly using apps offered by communities they are part of and merchants they patronize regularly,” said Todd Youngren, president of Avenu™. “We created Avenu™ to be a gateway to the fast, simple, secure payments that our clients’ end users demand, and we are excited to ‘go live’ with our first client.”

Chairman and CEO Jeff W. Dick elaborated: “In creating Avenu™, we sought to ensure that our partners and their consumers have a flawless experience with the banking services we provide them. Our emphasis on getting compliance right is critical. Our innovative approach ensures that our partners can connect to the core system of a reliable bank with well-honed instincts about regulatory compliance and a clear line of sight into any emerging risks.”

ABOUT AVENU™

Avenu™ — Banking Delivered

Avenu™ is the only embedded banking solution that connects our partners and their apps directly and seamlessly to a banking core — MainStreet Bank’s banking core. We are not a sponsor bank without our own technology, and we are not a middleware software company (aggregator) without our own bank. We are Avenu™, a leading financial technology company backed by an established community business bank in the heart of Washington, D.C.

Avenu™ — Serving a Community of Innovation

Our 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 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 – 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 the novel coronavirus (COVID-19) outbreak, 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)

	December 31, 2022			September 30, 2022			June 30, 2022			March 31, 2022			December 31, 2021
ASSETS
Cash and cash equivalents
Cash and due from banks	$	48,931		$	50,636		$	55,636		$	63,986		$	61,827
Federal funds sold		81,669			54,098			47,013			37,756			31,372
Total cash and cash equivalents		130,600			104,734			102,649			101,742			93,199
Investment securities available for sale, at fair value		62,631			162,319			143,240			123,802			99,913
Investment securities held to maturity, at carrying value		17,642			17,670			17,698			18,769			20,349
Restricted equity securities, at cost		24,325			16,436			16,485			17,209			15,609
Loans, net of allowance for loan losses of $14,114, $12,994, $12,982,$12,500, and $11,697, respectively		1,579,950			1,448,071			1,416,875			1,413,238			1,341,760
Premises and equipment, net		14,709			14,523			14,756			14,833			14,863
Other real estate owned, net		—			—			—			—			775
Accrued interest and other receivables		9,581			8,273			7,313			6,980			7,701
Computer software, net of amortization		9,149			7,258			4,956			3,906			2,493
Bank owned life insurance		37,249			36,996			36,742			36,492			36,241
Other assets		39,915			43,835			32,665			24,777			14,499
Total Assets	$	1,925,751		$	1,860,115		$	1,793,379		$	1,761,748		$	1,647,402
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Non-interest bearing deposits	$	550,690		$	566,016		$	535,591		$	514,160		$	530,678
Interest bearing DDA deposits		80,099			93,695			99,223			76,286			69,232
Savings and NOW deposits		51,419			54,240			58,156			81,817			85,175
Money market deposits		222,540			254,190			231,207			301,842			267,730
Time deposits		608,141			585,783			575,950			460,839			459,148
Total deposits		1,512,889			1,553,924			1,500,127			1,434,944			1,411,963
Federal Home Loan Bank advances and other borrowings		100,000			—			—			40,000			—
Subordinated debt		72,245			72,146			72,047			71,955			29,294
Other liabilities		42,335			44,045			32,801			26,053			17,357
Total Liabilities		1,727,469			1,670,115			1,604,975			1,572,952			1,458,614
Stockholders’ Equity:
Preferred stock		27,263			27,263			27,263			27,263			27,263
Common stock		28,736			28,728			29,178			29,642			29,466
Capital surplus		63,999			63,231			64,822			66,798			67,668
Retained earnings		86,830			80,534			73,702			68,691			64,194
Accumulated other comprehensive income (loss)		(8,546	)		(9,756	)		(6,561	)		(3,598	)		197
Total Stockholders’ Equity		198,282			190,000			188,404			188,796			188,788
Total Liabilities and Stockholders’ Equity	$	1,925,751		$	1,860,115		$	1,793,379		$	1,761,748		$	1,647,402

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME INFORMATION

(In thousands, except share and per share data)

	Year-to-Date						Three Months Ended
	December 31, 2022			December 31, 2021			December 31, 2022		September 30, 2022			June 30, 2022		March 31, 2022		December 31, 2021
INTEREST INCOME:
Interest and fees on loans	$	78,872		$	61,743		$	23,972	$	20,261		$	17,954	$	16,685	$	15,532
Interest on investment securities
Taxable securities		1,603			1,262			467		378			401		357		327
Tax-exempt securities		1,058			1,060			262		261			263		272		283
Interest on federal funds sold		2,312			134			1,071		1,013			195		34		61
Total interest income		83,845			64,199			25,772		21,913			18,813		17,348		16,203
INTEREST EXPENSE:
Interest on interest bearing DDA deposits		601			229			256		175			105		65		59
Interest on savings and NOW deposits		203			165			81		43			42		37		38
Interest on money market deposits		1,547			772			781		496			151		119		127
Interest on time deposits		8,202			7,613			2,966		2,275			1,530		1,431		1,574
Interest on Federal Home Loan Bank advances and other borrowings		347			—			264		—			52		31		—
Interest on subordinated debt		2,936			1,884			828		828			812		468		539
Total interest expense		13,836			10,663			5,176		3,817			2,692		2,151		2,337
Net interest income		70,009			53,536			20,596		18,096			16,121		15,197		13,866
Provision for (recovery of) loan losses		2,398			(1,175	)		1,118		—			480		800		295
Net interest income after provision for (recovery of) loan losses		67,611			54,711			19,478		18,096			15,641		14,397		13,571
NON-INTEREST INCOME:
Deposit account service charges		2,420			2,426			610		601			597		611		624
Bank owned life insurance income		1,008			900			253		254			250		251		253
Loan swap fee income		619			83			—		518			101		—		83
Net gain on held-to-maturity securities		4			6			—		—			4		—		3
Net gain (loss) on sale of loans		(168	)		847			—		(211	)		—		43		413
Other non-interest income		951			1,848			196		186			312		257		247
Total other income		4,834			6,110			1,059		1,348			1,264		1,162		1,623
NON-INTEREST EXPENSES:
Salaries and employee benefits		23,801			19,305			6,775		5,874			5,604		5,548		5,029
Furniture and equipment expenses		2,786			2,468			710		760			659		657		726
Advertising and marketing		2,304			1,565			620		704			574		406		450
Occupancy expenses		1,471			1,541			378		400			352		341		449
Outside services		2,075			1,394			529		611			567		368		485
Administrative expenses		872			685			214		253			195		210		192
Other operating expenses		5,748			5,907			1,481		1,291			1,543		1,433		1,389
Total non-interest expenses		39,057			32,865			10,707		9,893			9,494		8,963		8,720
Income before income tax expense		33,388			27,956			9,830		9,551			7,411		6,596		6,474
Income tax expense		6,714			5,785			2,252		1,808			1,481		1,173		1,660
Net income		26,674			22,171			7,578		7,743			5,930		5,423		4,814
Preferred stock dividends		2,156			2,156			539		539			539		539		539
Net income available to common shareholders	$	24,518		$	20,015		$	7,039	$	7,204		$	5,391	$	4,884	$	4,275
Net income per common share, basic and diluted	$	3.26		$	2.65		$	0.95	$	0.97		$	0.71	$	0.64	$	0.56
Weighted average number of common shares, basic and diluted		7,529,382			7,559,310			7,433,607		7,463,719			7,575,484		7,647,519		7,595,062

UNAUDITED LOAN, DEPOSIT AND BORROWING DETAIL

(In thousands)

	December 31, 2022						September 30, 2022						December 31, 2021						Percentage Change
	$ Amount			% of Total			$ Amount			% of Total			$ Amount			% of Total			Last 3 Mos			Last 12 Mos
LOANS:
Construction and land development loans	$	393,783			24.6	%	$	366,689			25.0	%	$	337,173			24.8	%		7.4	%		16.8	%
Residential real estate loans		394,394			24.7	%		373,056			25.4	%		300,390			22.1	%		5.7	%		31.3	%
Commercial real estate loans		700,728			43.8	%		638,110			43.5	%		534,187			39.3	%		9.8	%		31.2	%
Commercial and industrial loans		97,351			6.1	%		74,482			5.1	%		164,014			12.1	%		30.7	%		-40.6	%
Consumer loans		13,336			0.8	%		13,628			1.0	%		23,171			1.7	%		-2.1	%		-42.4	%
Total Gross Loans	$	1,599,592			100.0	%	$	1,465,965			100.0	%	$	1,358,935			100.0	%		9.1	%		17.7	%
Less: Allowance for loan losses		(14,114	)					(12,994	)					(11,697	)
Net deferred loan fees		(5,528	)					(4,900	)					(5,478	)
Net Loans	$	1,579,950					$	1,448,071					$	1,341,760
DEPOSITS:
Non-interest bearing demand deposits	$	550,690			36.4	%	$	566,016			36.4	%	$	530,678			37.6	%		-2.7	%		3.8	%
Interest-bearing demand deposits:
Demand deposits		80,099			5.3	%		93,695			6.0	%		69,232			4.9	%		-14.5	%		15.7	%
Savings and NOW deposits		51,419			3.4	%		54,240			3.5	%		85,175			6.0	%		-5.2	%		-39.6	%
Money market accounts		222,540			14.7	%		254,190			16.4	%		267,730			19.0	%		-12.5	%		-16.9	%
Certificates of deposit $250,000 or more		370,005			24.5	%		371,739			23.9	%		285,395			20.2	%		-0.5	%		29.6	%
Certificates of deposit less than $250,000		238,136			15.7	%		214,044			13.8	%		173,753			12.3	%		11.3	%		37.1	%
Total Deposits	$	1,512,889			100.0	%	$	1,553,924			100.0	%	$	1,411,963			100.0	%		-2.6	%		7.1	%
BORROWINGS:
Federal Home Loan Bank advances		100,000			58.1	%		—			0.0	%		—			—			100.0	%		100.0	%
Subordinated debt		72,245			41.9	%		72,146			100.0	%		29,294			100.0	%		0.1	%		146.6	%
Total Borrowings	$	172,245			100.0	%	$	72,146			100.0	%	$	29,294			100.0	%		138.7	%		488.0	%
Total Deposits and Borrowings	$	1,685,134					$	1,626,070					$	1,441,257						3.6	%		16.9	%

Core customer funding sources ⁽¹⁾	$	1,157,573			68.7	%	$	1,156,862			71.1	%	$	1,108,177			76.9	%		0.1	%		4.5	%
Brokered and listing service sources ⁽²⁾		355,316			21.1	%		397,062			24.5	%		303,786			21.1	%		-10.5	%		17.0	%
Federal Home Loan Bank advances		100,000			5.9	%		—			0.0	%		—			—			100.0	%		0.0	%
Subordinated debt ⁽³⁾		72,245			4.3	%		72,146			4.4	%		29,294			2.0	%		0.1	%		146.6	%
Total Funding Sources	$	1,685,134			100.0	%	$	1,626,070			100.0	%	$	1,441,257			100.0	%		3.6	%		16.9	%

(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 December 31, 2022							For the three months ended December 31, 2021
	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⁾	$	1,510,087	$	23,972		6.30	%	$	1,277,828	$	15,532		4.82	%
Securities:
Taxable		70,776		467		2.62	%		76,776		327		1.69	%
Tax-exempt		38,007		332		3.46	%		38,936		358		3.65	%
Federal funds and interest-bearing deposits		124,865		1,071		3.40	%		192,442		61		0.13	%
Total interest earning assets	$	1,743,735	$	25,842		5.88	%	$	1,585,982	$	16,278		4.07	%
Other assets		55,559							87,072
Total assets	$	1,799,294						$	1,673,054
Liabilities and Stockholders’ Equity:
Interest-bearing liabilities:
Interest-bearing demand deposits	$	81,724	$	256		1.24	%	$	69,532	$	59		0.34	%
Savings and NOW deposits		53,570		81		0.60	%		82,048		38		0.18	%
Money market deposit accounts		213,530		781		1.45	%		296,063		127		0.17	%
Time deposits		613,262		2,966		1.92	%		466,190		1,574		1.34	%
Total interest-bearing deposits	$	962,086	$	4,084		1.68	%	$	913,833	$	1,798		0.78	%
Federal funds purchased		2		—		—			1		—		—
Subordinated debt		72,206		828		4.55	%		40,297		539		5.31	%
FHLB borrowings		23,913		264		4.38	%		—		—		—
Total interest-bearing liabilities	$	1,058,207	$	5,176		1.94	%	$	954,131	$	2,337		0.97	%
Demand deposits and other liabilities		546,827							532,216
Total liabilities	$	1,605,034						$	1,486,347
Stockholders’ Equity		194,260							186,707
Total Liabilities and Stockholders’ Equity	$	1,799,294						$	1,673,054
Interest Rate Spread						3.94	%						3.10	%
Net Interest Income			$	20,666						$	13,941
Net Interest Margin						4.70	%						3.49	%

(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 Appendix for reconciliation of non-GAAP measures

UNAUDITED AVERAGE BALANCE SHEETS, INTEREST AND RATES

(In thousands)

	For the year ended December 31, 2022							For the year ended December 31, 2021
	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⁾	$	1,442,716	$	78,872		5.47	%	$	1,289,445	$	61,743		4.79	%
Securities:
Taxable		72,809		1,603		2.20	%		60,732		1,262		2.08	%
Tax-exempt		38,528		1,339		3.48	%		39,170		1,342		3.43	%
Federal funds and interest-bearing deposits		122,596		2,312		1.89	%		216,436		134		0.06	%
Total interest earning assets	$	1,676,649	$	84,126		5.02	%	$	1,605,783	$	64,481		4.02	%
Other assets		67,380							79,357
Total assets	$	1,744,029						$	1,685,140
Liabilities and Stockholders’ Equity:
Interest-bearing liabilities:
Interest-bearing demand deposits	$	85,566	$	601		0.70	%	$	67,897	$	229		0.34	%
Savings and NOW deposits		63,401		203		0.32	%		74,975		165		0.22	%
Money market deposit accounts		137,066		1,547		1.13	%		333,160		772		0.23	%
Time deposits		642,918		8,202		1.28	%		498,001		7,613		1.53	%
Total interest-bearing deposits	$	928,951	$	10,553		1.14	%	$	974,033	$	8,779		0.90	%
Federal funds and repos purchased		2		—		—			—		—		—
Subordinated debt		65,176		2,936		4.50	%		33,953		1,884		5.55	%
FHLB borrowings		23,986		347		1.45	%		—		—		—
Total interest-bearing liabilities	$	1,018,115	$	13,836		1.36	%	$	1,007,986	$	10,663		1.06	%
Demand deposits and other liabilities		535,075							498,031
Total liabilities	$	1,553,190						$	1,506,017
Stockholders’ Equity		190,839							179,123
Total Liabilities and Stockholders’ Equity	$	1,744,029						$	1,685,140
Interest Rate Spread						3.66	%						2.96	%
Net Interest Income			$	70,290						$	53,818
Net Interest Margin						4.19	%						3.35	%

(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 Appendix 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 Year Ended
	December 31,						December 31,
	2022			2021			2022			2021
*Per share Data and Shares Outstanding*
Earnings per common share (basic and diluted)	$	0.95		$	0.56		$	3.26		$	2.65
Book value per common share	$	22.98		$	21.27		$	22.98		$	21.27
Tangible book value per common share⁽²⁾	$	21.75		$	20.49		$	21.75		$	20.49
Weighted average common shares (basic and diluted)		7,433,607			7,595,062			7,529,382			7,559,310
Common shares outstanding at end of period		7,442,743			7,595,781			7,442,743			7,595,781
*Performance Ratios*
Return on average assets (annualized)		1.67	%		1.14	%		1.53	%		1.32	%
Return on average equity (annualized)		15.48	%		10.23	%		13.98	%		12.38	%
Return on average common equity (annualized)		16.72	%		10.63	%		14.99	%		13.18	%
Yield on earning assets (FTE) (2) (annualized)		5.88	%		4.07	%		5.02	%		4.02	%
Cost of interest bearing liabilities (annualized)		1.94	%		0.97	%		1.36	%		1.06	%
Net interest spread (FTE)⁽²⁾		3.94	%		3.10	%		3.66	%		2.96	%
Net interest margin (FTE)(2) (annualized)		4.70	%		3.49	%		4.19	%		3.35	%
Noninterest income as a percentage of average assets (annualized)		0.23	%		0.38	%		0.28	%		0.36	%
Noninterest expense to average assets (annualized)		2.36	%		2.07	%		2.24	%		1.95	%
Efficiency ratio⁽³⁾		49.45	%		56.31	%		52.19	%		55.10	%
*Asset Quality*
Commercial real estate loans to total capital ⁽⁴⁾		377.54	%		367.88	%		377.54	%		367.88	%
Construction loans to total capital ⁽⁵⁾		137.41	%		148.30	%		137.41	%		148.30	%
Loans 30-89 days past due to total gross loans		0.00	%		0.01	%		0.00	%		0.01	%
Loans 90 days past due to total gross loans		0.00	%		0.00	%		0.00	%		0.00	%
Non-accrual loans to total gross loans		0.00	%		0.00	%		0.00	%		0.00	%
Other real estate owned	$	—		$	775		$	—		$	775
Non-performing assets	$	—		$	775		$	—		$	775
Non-performing assets to total assets		0.00	%		0.05	%		0.00	%		0.05	%
Allowance for loan losses to total gross loans		0.88	%		0.86	%		0.88	%		0.86	%
Allowance for loan losses to non-performing assets		N/A			15.09			N/A			15.09
Net loan recoveries	$	2		$	26		$	19		$	5
Net charge-offs (recoveries) to average gross loans (annualized)		0.00	%		0.01	%		0.00	%		0.00	%
*Regulatory Capital Ratios (Bank only) ⁽¹⁾*
Total risk-based capital ratio		16.27	%		16.06	%		16.27	%		16.06	%
Tier 1 risk-based capital ratio		15.47	%		15.23	%		15.47	%		15.23	%
Leverage ratio		15.05	%		12.90	%		15.05	%		12.90	%
Common equity tier 1 ratio		15.47	%		15.23	%		15.47	%		15.23	%
*Other information*
Closing stock price	$	27.49		$	24.59		$	27.49		$	24.59
Equity / assets		10.35	%		11.46	%		10.35	%		11.46	%
Average equity / average assets		10.80	%		11.16	%		10.94	%		10.63	%
Number of full time equivalent employees		168			138			168			138
# Full service branch offices		6			6			6			6

(1)	Regulatory capital ratios as of December 31, 2022 are preliminary
(2)	Refer to Appendix 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 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 December 31,						For the year ended December 31,
	2022			2021			2022			2021
Net interest margin (FTE)
Net interest income (GAAP)	$	20,596		$	13,866		$	70,009		$	53,536
FTE adjustment on tax-exempt securities		70			75			281			282
Net interest income (FTE) (non-GAAP)		20,666			13,941			70,290			53,818

Average interest earning assets		1,743,735			1,585,982			1,676,649			1,605,783
Net interest margin (GAAP)		4.69	%		3.47	%		4.18	%		3.33	%
Net interest margin (FTE) (non-GAAP)		4.70	%		3.49	%		4.19	%		3.35	%

	For the three months ended December 31,						For the year ended December 31,
	2022			2021			2022			2021
Stockholders equity, adjusted
Total stockholders equity (GAAP)	$	198,282		$	188,788		$	198,282		$	188,788
Less: preferred stock		(27,263	)		(27,263	)		(27,263	)		(27,263	)
Total common stockholders equity (GAAP)		171,019			161,525		$	171,019		$	161,525
Less: intangible assets		9,149			2,493			9,149			2,493
Tangible common stockholders equity (non-GAAP)		161,870			159,032			161,870			159,032

Shares outstanding		7,442,743			7,595,781			7,442,743			7,595,781
Tangible book value per common share (non-GAAP)	$	21.75		$	20.94		$	21.75		$	20.94

Virginia	001-38817	81-2871064
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

10089 Fairfax Boulevard, Fairfax, VA		22030
(Address of Principal Executive Offices)		(Zip Code)

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	MNSB	The Nasdaq Stock Market LLC
Depositary Shares (each representing a 1/40^th interest in a share of 7.50% Series A Fixed-Rate Non-Cumulative Perpetual Preferred Stock	MNSBP	The Nasdaq Stock Market LLC

Exhibit Number		Description
99.1		Press Release, dated January 23, 2023, with respect to the Company’s unaudited financial results for the fourth quarter and year-ended December 31, 2022.
99.2		Investor Presentation dated January 23, 2023.
104		Cover Page Interactive Data File (embedded within the Inline XBRL document).

	MAINSTREET BANCSHARES, INC

Date: January 23, 2023	By:	/s/ Thomas J. Chmelik
		Name: Thomas J. Chmelik
		Title: Chief Financial Officer