Good afternoon, and thank you for joining our first quarter 2026 earnings webcast. My name is Jeff Dick. I am the Chairman and CEO of MainStreet Bancshares, Inc. and MainStreet Bank. With me today is our Chief Financial Officer, Alex Vari; and our Chief Lending Officer, Tom Floyd. Chris Marinac, Director of Research for Brean Capital, will join us at the end of the call today with his questions. [Operator Instructions] This is a private chat that won't be visible to anyone else on the call. We will address your questions at the end of the presentation. If we miss your question during the discussion, please reach out after the webcast. I'd like to take a moment to point to our safe harbor page that describes the context of forward-looking statements that we may make today. Please also note that we may use certain non-GAAP measures, which are identified as such within the presentation materials. The D.C. metropolitan area is much more than host to the federal government. With our major universities, tourism, data centers, world-class medical facilities and resident Fortune 500 companies, it continues to be a great place to do business. By the numbers, the median household income is up $10,000 year-on-year and is at $135,000. The average home listing price is $831,000 and the median days on market went from 29 days to 30 days, still a seller's market. Federal Reserve economic data from December 2025 indicates that we have 684,000 government employees in the D.C. metropolitan area. Our market remains vibrant, and we continue to see opportunities. We are, of course, tuned into local, national and global geopolitical activities. And when things happen, we determine the potential impact to our market and to our business strategy. Over the past 2 years, we've been hovering around that…

Thank you, Jeff. On Slide 9, we summarize our financial performance over the last 5 quarters. The first quarter of 2026 was defined by execution. We increased earnings per share to $0.48 by combining disciplined share repurchases with a 5% increase in net interest income after credit provision. Our net interest margin improved to 3.47%, while our return on average assets and return on tangible common equity stand at 0.76% and 7.58%, respectively. It is important to note that these results include a nonrecurring $685,000 loss on an other real estate owned disposition. We continue to be focused on becoming more efficient and have positioned ourselves for earnings growth in future quarters. Page 10 highlights our intentional management of our loan-to-deposit ratio to maximize our net interest income. Liquidity remains a fortress with abundant funding sources. Our secured available line increased $76 million to $663 million during the first quarter. Our liquidity facilities now cover over 42% of our entire deposit portfolio. Moving to Slide 11. You will see our net interest margin has expanded. The core portfolio is resilient with the core net interest margin increasing to 3.54%. Over the last 4 quarters, we've recognized onetime events that appear in our reported net interest margin. So we thought it was important to show the net interest margin without these nonrecurring transactions. In Q2 2025, we recovered $1.3 million in interest from a nonperforming asset. And in each of the last 3 quarters, we reversed interest on a small handful of loans we are working through. In fact, the average reported net interest margin across the last 5 quarters is 3.50%, which trends closely to the core net interest margin. You can refer to our presentation of non-GAAP ratios at the back of the slide deck for additional details. Our…

Thank you, Alex. As we recap the first quarter of 2026, I'm proud of our team's unwavering commitment to being a consistent and reliable financial partner. That dedication is reflected in our first quarter results where we saw a continuation in loan growth in desirable categories. Perhaps most notably, we maintained our credit discipline, finishing the quarter with net charge-offs at $259,000. Over the next few minutes, I'm excited to delve into the details of our portfolio composition and trends that drove these results. Slide 16 highlights our portfolio diversification, where we continue to see growth in our owner-occupied commercial real estate concentration. This was a theme of our 2025 year, so we're glad to see this continue into 2026 as our energy remains focused on the strategic growth of owner-occupied commercial real estate, which we've grown by roughly $80 million over the last year. As of the end of the first quarter, our portfolio composition consists of 30% nonowner-occupied commercial real estate, 25% owner-occupied commercial real estate, 16% in construction, 13% in multifamily, 11% in residential real estate and 5% in commercial and industrial. Additionally, it's worth noting that nearly all of our construction portfolio has an interest reserve held at the bank. Slide 17 shows our trend in average new loan size remaining low as we have grown. This highlights that in the current environment, we're sticking to smaller-sized opportunities within our market, which is full of diverse opportunities of all types and sizes. Moving to Slide 18, you will see the trend in our stress test estimates over the past 5 quarters. While the estimated worst-case stress loss has increased this quarter to $69.5 million, I want to draw your attention to the strength of our balance sheet. Even under these heightened hypothetical scenarios, our pre- and…

Thank you, Tom. As you heard, the lenders have been busy working on new relationships, especially in the owner-occupied space. The team is also working with field precision on each loan requiring resolution to minimize the possibility of a downside. We've also shared good news about the directional consistency of our net interest margin, expense control and earnings. We'll address questions that are submitted through the portal after we hear from Chris Marinac, Director of Research at Brean Capital. Chris, good afternoon. Chris, are you with us? We may be having a slight technical difficulty with this new solution. Bear with us, please, for 1 minute. [Technical Difficulty] Yes, we got you. Thank you, Chris.

Great. Sorry, a couple of settings there. So I wanted to ask about customer behavior just in terms of if folks are more cautious or more optimistic and just kind of how that may or may not impact your new business pipeline in the next few quarters.

Yes, that's a great question. I think I'll turn that over first to Tom Floyd on the loan side.

Yes. Great question. I think that, generally speaking, in the real estate space, people are optimistic because they're able to take advantage of certain circumstances for expansion that they feel good about going forward. I think overall, our pipeline is still seeing lots of good opportunities, both that are related to some of the activity that comes along with some of the things that are happening at the national level in the government contracting space. But in real estate, I think we're continuing to see good opportunities. I think people -- it's hard to say if -- yes, I think we're definitely seeing a good amount of opportunities in the pipeline.

And I think it's probably fair to say also that some of those opportunities might be coming at the risk of others who have struggled. And so from a pricing standpoint in the commercial real estate space, everybody loves a good deal. And so we're seeing a little bit of that as well. But mostly, everything stands on its own, and we haven't seen any real changes certainly in the quality of the folks that we're looking at for new opportunities. On the deposit side, it seems like we've been making a bit more of an inroad. And I don't know if it's a general change in where people are putting their money again, but it's -- the business bankers have been keeping busy. And so yes, we're not seeing anything that would lead us to believe things are slowing down any more than they perhaps already had.

Okay. Would the ability to get new accounts on the deposit side possibly accelerate if some of the external kind of distractions or uncertainty, I feel like that may benefit your marketplace more than others.

Yes, I think so. And in the meantime, there's always that flight to quality and FDIC insured deposits are still seen as a very strong quality mark. So yes, I think as international certainly arena settles down, if and when it settles down, yes, we should see some more opportunities, I think, for deposit growth there, too.

Okay. And then the net interest margin still seems like it has some potential positive change as some nonaccrued interest shifts. Can you just talk about the puts and takes on that and perhaps just any new visibility on margin outside of that recapture of problem loans?

Yes. Yes, great question. As I mentioned in the slide deck, we are seeing good opportunities, both on the deposit side to continue lower funding costs. We have a set of time deposits that are repricing. And as the short end has come down, we're going to see funding relief there. And on the loan side, again, as the yield curve kind of steepens, we're going to be able to deploy those at a nice margin spread as our loans tend to fall around the 5-year. I think another thing to point out, we recently announced the appointment of a new Chief Banking Officer, who's really experienced in our market. And he's really bringing a lot of great ideas to the table to increase not only the wallet share of our existing customers, but really expand this result [indiscernible].

And then I guess one follow-up for me. It just has to do with expenses. Do you have any efficiency goals, not just next quarter, but just kind of in the big picture of kind of where you would like to see the organization? Is this quarter a step in that direction?

Yes, absolutely. And if you go back to 2023, one of our best years that we've ever had, we are seeing efficiency ratios in the low 50s percent. And that's our target. That's where we're trying to get to. This quarter, we saw expense reduction, and so we saw our increases in efficiency going lower. And we're going to continue that momentum. And our target is to get back to those 2023 levels.

Yes, which is somewhere between that 53% and 55%. We think it's absolutely doable. But one of the difficulties right now, if we do put a loan on nonaccrual, it generally means reversing 90 days of interest, which can be hurtful for the current quarter, which we saw a little bit of this quarter. But we can -- once we get to the bottom of that, being able to go forward, I think we'll see some good improvements in our efficiency ratio, and that's really a great focus.

Got you. Okay. And then last question for me just goes back to your new hire and the sort of expertise that she brings in the gov con area. Will that part of your business be a lot different as we look a year or 18 months from now? Just curious kind of big picture, how that will be impacted.

So we're definitely focused on that. I'll turn the question over to Tom in just a second. But yes, from the Board level, we think bringing somebody in with Morgan's background and experience is going to help us to really get a better line of sight into some of the government contractors she -- Blue Delta and what she does as a minority equity investor, everybody wants to have time with that group, and there's other groups in that space as well. But -- so we -- our hope is to try to bring people together to host some events and things where she's speaking and really look at the opportunities. Having said that, the conversion rate on government contract borrowers is -- it's a little bit more of an effort. But Tom, I'll turn it over to you.

Sure. A lot -- everyone in our market says that they want to be in the space, but I think I'm really excited about how we're approaching it because we're bringing someone on that is a known quantity in the space. And from a number of different perspectives, Morgan can help us with opening doors to new customers and prospects and also just making sure that from an internal perspective, we're doing everything we can to be as competitive as possible in the marketplace. And we are seeing some progress already with actual results. And so I think in terms of what we're going to look like in a few years, I do expect some meaningful growth out of where we stand currently. It's certainly a very strong funding source for us. I think it will remain to be a strong funding source because of the nature of the business. But I do think that overall, we expect to see growth on the lending and deposit side.

Thank you. As always, Chris, it's great to hear from you. We do have just a couple of questions that came in through the chat. One is as a follow-on to Chris' question, is the bank actively working with the developments along the Route 50 corridor out to Middleburg, Tom?

Our acquisition and development financing is mainly infill, which is closer in inside the Beltway and just outside the Beltway. We do have some exposure to some people that have data center plans. But in those data center opportunities, a lot of them are like covered land plays where there's an industrial component that still makes sense and there's some industrial current uses that are happening where there's future potential for data center development. So it's not fully dependent on that. But going out that way, there's certainly a lot of growth in development. But for us, we're mainly focused a little bit closer into the Beltway.

Great. Yes, it's safer. I think it's always been -- when we look back to the Great Recession in 2007, prices of land and property inside the Beltway dropped 7%, while in Southern Virginia, you further out, it was 31%. So we've always focused trying to be close in as possible. The other question is a little bit harder to answer right now because we are in a blackout period, but does the bank intend to maintain an aggressive buyback so long as the stock price is below tangible book value. And so I don't think that you'll see any change in trends of what you've seen in the past, but I don't know that we can really speak to that anymore. Alex?

Yes. I'd just say we were very pleased with our current buyback plan, and the Board is always looking at ways to expand capital in ways that make sense for shareholders. So that won't change, and that will continue.

So I think that's a safe answer to that question. And as looking at the website right now, there's no other questions in the queue. So I want to thank everybody that participated in the webcast today. We're optimistic with what we're seeing. And like Alex kind of referenced a little bit earlier, 2023 was a banner year for us. Our objective is to get back to that level and then some. But we're working diligently to make that happen. So if you find you have any questions once the call is done, please always feel free to reach out. We're happy to talk with you one-on-one and look forward to that opportunity. Thank you, everyone, and have a great rest [Audio Gap]