FAIRFAX, Va., Aug. 27, 2018 /PRNewswire/ -- MainStreet Bancshares, Inc. (OTCQX: MNSB), the holding company for MainStreet Bank, reports completion of an over-subscribed private placement in the amount of $45 million on August 24, 2018.
A total of 2,368,421 shares were sold to accredited investors in the offering through FIG Partners, LLC, acting as the placement agent. The private placement was over-subscribed by 60% from the original $40 million offering, and the amount of the final offering was increased to $45 million.
The book value per common share was $12.42 as of June 30, 2018. The estimated book value per common share as of the closing date of the new offering is $14.04, which is accretive for existing shareholders.
QUOTES: "MainStreet has a strong track record of growth – especially so over the past eight quarters," says Chris Brockett, President of MainStreet Bancshares, Inc. and MainStreet Bank. "We are expanding our Business Banking team and are focused on building new relationships and deepening existing relationships in the communities we serve. We also continue to benefit from all of the banking consolidation and disruption we've seen in our market."
"We are excited to welcome new investors, and also to thank some of our existing investors for deepening their positions with MainStreet. We are confident that the rate of capital deployment will continue to meet our investor expectations," says Jeff W. Dick, Chairman and CEO of MainStreet Bancshares, Inc. and MainStreet Bank. "Our main focus is on managing and maintaining quality growth while enhancing our overall performance metrics."
Jones Walker LLP served as counsel for MainStreet Bancshares, Inc., and Alston & Bird served as counsel for FIG Partners, LLC.
ABOUT MAINSTREET BANK: MainStreet operates six branches in Herndon, Fairfax, Fairfax City, McLean, Leesburg and Clarendon. In addition, MainStreet 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 well over 1,000 businesses in the Metropolitan area.
MainStreet has a full complement of payment system services for third party payment providers. MainStreet has a nationally known market leader on-staff ready to help payment providers create a solution perfect for their needs.
MainStreet 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 mobile banking and Apple Pay to instant-issue Debit Cards, MainStreet Bank is always looking for ways to improve its customer 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 mstreetbank.com.
This release contains forward-looking statements, including our expectations with respect to future events that are subject to various risks and uncertainties. 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, maintenance and development of well-established and valued client relationships and referral source relationships, and acquisition or loss of key production personnel. Other risks that can affect the Bank are detailed from time to time in our annual reports. 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.
Jeff W. Dick
SOURCE MainStreet Bancshares, Inc.