Potomac Bancshares and MainStreet Bank Compared

Analyzing the financial performance and investment potential of these two banking companies.

Published on Feb. 12, 2026

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Potomac Bancshares (OTCMKTS:PTBS) and MainStreet Bank (NASDAQ:MNSB) are both finance companies, but which one is the better investment? This article compares the two companies based on factors like dividends, volatility, revenue, earnings, valuation, and institutional ownership to help investors determine which stock is the stronger choice.

Why it matters

Comparing the financial performance and investment potential of regional banking companies like Potomac Bancshares and MainStreet Bank can help investors make more informed decisions about where to allocate their capital. Understanding the key differences between these two firms in areas like dividends, risk profile, and valuation is crucial for evaluating which stock may be the better long-term investment.

The details

Potomac Bancshares pays a higher annual dividend of $0.52 per share compared to MainStreet Bank's $0.40 per share, giving it a dividend yield of 2.6% versus 1.8% for MainStreet. Both companies have healthy payout ratios below 25%. In terms of volatility, Potomac Bancshares has a beta of 0.22, indicating its share price is 78% less volatile than the S&P 500, while MainStreet Bank has a beta of 0.62, making it 38% less volatile. On valuation, Potomac Bancshares trades at a lower price-to-earnings ratio than MainStreet Bank. However, MainStreet Bank has higher revenue and earnings per share. Institutional ownership is also much stronger for MainStreet Bank at 52.3% compared to just 5.3% for Potomac Bancshares.

  • The financial data in this analysis is current as of February 12, 2026.

The players

Potomac Bancshares, Inc.

A bank holding company that operates Bank of Charles Town, providing various banking products and services to individuals and businesses in West Virginia.

MainStreet Bancshares, Inc.

A bank holding company that operates MainStreet Bank, providing banking products and services to individuals, small-to-medium businesses, and professional service organizations in Virginia.

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The takeaway

While Potomac Bancshares offers a higher dividend yield, MainStreet Bank appears to be the stronger overall investment based on its lower volatility, higher institutional ownership, and superior financial performance in areas like revenue and earnings. Investors looking to gain exposure to regional banking should carefully weigh the tradeoffs between these two companies.