MainStreet Bank Reports Another Record Year

Jan 21, 2016, 08:00 ET from MainStreet Bank

FAIRFAX, Va., Jan. 21, 2016 /PRNewswire/ -- MainStreet Bank (OTCQB: MNSB) reported a 39% increase in its share trading price for 2015 with an average daily volume of 3,550 shares traded.  The Bank's stock started the year at $8.90 per share and ended at $12.35 per share.

MainStreet's annual balance sheet growth was 39% for calendar year 2015 with total assets of $478 million against total assets of $345 million at the start of the year. The Bank completed an $80 million indirect consumer loan portfolio purchase on July 27, 2015.

Net income after tax for the year is up 24% even with the one-time $775 thousand loss provision that was necessary to book the indirect consumer loan portfolio purchase.  The Bank reported net income for the fourth quarter of $946 thousand against the prior year's fourth quarter net income of $588 thousand, a 61% increase. 

Fully diluted earnings per share through December 31, 2015 were 51 cents as compared with 64 cents for the same period in 2014.  However, the weighted average shares outstanding increased by 1,504,401 between the two periods, largely due to a capital raise that occurred at the end of 2014.

Net interest income of $15.645 million reported for December 31, 2015 improved $3.474 million over net interest income from December 31, 2014.  The net interest margin fell slightly to 3.96%, largely due to the indirect consumer loan portfolio, which is a lower-yielding short-term asset.

Net loans outstanding increased by $129 million during the twelve months ending December 31, 2015, from $269 million on Dec. 31, 2014 to $398 million on December 31, 2015.

Total deposits increased by $83 million during the twelve months ending December 31, 2015 reaching $386 million. Year-over-year demand account balances increased by $17 million while money market and interest checking accounts increased by $29 million, increases of 33% and 43% respectively.  Time deposits increased by $37 million, or 20%, during the same period.  The increased deposit growth was used to fund liquidity and the indirect consumer loan portfolio purchase.  An additional source of funding for the portfolio was Federal Home Loan Bank advances, which increased $48 million year over year.

Asset quality remains very strong. Nonperforming loans were 0.17 percent of total loans on December 31, 2015.

Non-interest income was $1.265 million for the twelve months ending December 31, 2015 compared to $1.017 million for the same period in 2014. Non-interest expense for the twelve months ending December 31, 2015 was $12.346 million, compared to $10.097 million for the same period in 2014. The increase was driven primarily by personnel related expenses associated with the growth and expansion during 2015, which allowed the company to experience high quality growth.

QUOTES: "MainStreet Bank had a good 2015. The purchase of the $80 million indirect consumer loan portfolio in July was a great opportunity which essentially kick-starting the indirect lending team's portfolio.  We are building a diversified loan portfolio and are experiencing good growth for all areas of the Bank," says Jeff W. Dick, Chairman, CEO and President of MainStreet Bank. "Our share price has shown a consistent positive trend for the year, and we ended the year trading at nearly 124% of book value.  Our plan for continued growth should result in building strong shareholder value."

ABOUT MAINSTREET BANK:   MainStreet operates five branches in Herndon, Fairfax, Fairfax City, McLean and Clarendon.  In addition, MainStreet has 55,000 free ATMs and a fully integrated online 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 literally "put our bank" in well over 750 businesses in the Metropolitan area.

MainStreet Bank is always looking for ways to improve its customer experience, and now has the ability to instantly issue new and replacement Debit Cards - which is especially important for customers if their Cards are compromised or lost.

MainStreet Bank also continues to refine and improve its mobile banking App for iPads, iPhones and Androids.  Additionally, MainStreet Bank released Aircharity® in 2012. Aircharity® is a unique solution that empowers people and organizations to raise money via email, websites and social media.  The product allows a customer to open an account and accept donations from debit cards, credit cards and electronic checks. 

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. 



BALANCE SHEETS

(Unaudited)

(In thousands, except ratios)








12/31/15

9/30/15

6/30/15

3/31/15

12/31/14

ASSETS












Cash and cash equivalents






  Cash and due from banks

$      7,211

$    17,736

$      7,283

$    11,082

$      7,171

  Federal funds sold

-

779

-

803

-

      Total cash and cash equivalents

7,211

18,515

7,283

11,885

7,171

Investment securities available for sale, at fair value

33,657

36,317

29,852

27,582

38,643

Investment securities held to maturity

18,857

17,282

15,910

15,934

13,866

Subordinated  Debt

1,000

-

-

-

-

Restricted equity securities, at cost

3,508

3,718

1,596

1,594

1,166

Loans, net of allowance for loan losses

398,291

389,327

305,401

287,111

269,094

Premises and equipment, net

12,526

12,616

12,796

12,918

12,902

Other real estate owned, net

135

234

234

234

234

Accrued interest and other receivables

1,857

1,411

1,306

1,185

1,143

Other assets

1,208

1,552

1,201

830

757

   Total Assets

$  478,250

$  480,972

$  375,579

$  359,273

$  344,976







LIABILITIES AND STOCKHOLDERS' EQUITY






Liabilities:






Non-interest bearing deposits

$    68,409

$    72,659

$    72,244

$    65,178

$    51,562

Savings and NOW deposits

38,770

37,683

38,364

35,963

34,208

Money market deposits

59,580

58,023

47,387

36,774

34,741

Other time deposits

218,795

220,057

174,698

179,354

181,844

   Total deposits

385,554

388,422

332,693

317,269

302,355

Securities sold under agreements to repurchase

19

521

717

495

411

Federal Home Loan Bank advances and other borrowings

49,509

50,254

455

279

1,493

Other liabilities

1,044

660

1,055

1,020

954

   Total Liabilities

436,126

439,857

334,920

319,063

305,213







Stockholders' Equity:






Common stock

16,515

16,508

16,491

16,491

16,391

Capital surplus

21,837

21,757

21,690

21,602

21,626

Retained earnings

3,924

2,980

2,626

2,221

1,755

Accumulated other comprehensive income (loss)

(152)

(130)

(148)

(104)

(9)

   Total Stockholders' Equity

42,124

41,115

40,659

40,210

39,763







   Total Liabilities and Stockholders' Equity

$  478,250

$  480,972

$  375,579

$  359,273

$  344,976













Other Financial Highlights






   Annualized return on average assets

0.53%

0.42%

0.49%

0.53%

0.56%

   Annualized return on average equity

5.33%

4.01%

4.33%

4.65%

6.62%

   Annualized net interest margin

3.96%

4.03%

4.25%

4.32%

4.13%

   Efficiency ratio

73.01%

73.99%

75.95%

74.91%

77.17%

   Gross loans to deposits

104.57%

101.54%

92.79%

91.47%

90.00%

   Allowance for loan losses to total loans

0.91%

0.95%

0.99%

1.00%

1.01%

   Past due loans 30-89 days to total gross loans

0.03%

0.03%

0.00%

0.00%

0.00%

   Past due loans 90 days or more to total gross loans

0.00%

0.00%

0.00%

0.00%

0.00%

   Non-accrual loans to total gross loans

0.17%

0.21%

0.14%

0.14%

0.19%

   Quarterly net loan charge-offs (recoveries)

$       208

$         91

$       105

$       172

$         46

   Book value per share

$    10.00

$      9.78

$      9.64

$      9.52

$      9.44

   Closing stock price

$    12.35

$    11.59

$    10.20

$      9.40

$      8.90







Regulatory Capital Ratios






   Tier 1 risk-based capital ratio

10.27%

10.29%

13.30%

14.34%

13.68%

   Common equity tier 1 capital ratio

10.27%

10.29%

13.30%

14.34%

13.68%

   Total risk-based capital ratio

11.17%

11.22%

14.30%

15.37%

14.63%

   Leverage ratio

8.90%

9.12%

11.14%

11.54%

13.68%

 

STATEMENTS OF INCOME

(Unaudited)

(In thousands, except share data)





Year Ended

Three Months Ended


12/31/15

12/31/14

12/31/15

9/30/15

6/30/15

3/31/15

12/31/14

INTEREST INCOME:
















Interest and fees on loans

$   17,010

$  13,325

$    4,793

$    4,438

$    3,924

$    3,855

$    3,601

Interest on investment securities

932

891

245

231

220

236

244

Interest on federal funds sold

45

25

15

14

9

7

5

   Total interest income

17,987

14,241

5,053

4,683

4,153

4,098

3,850









INTEREST EXPENSE:








Interest on savings and NOW deposits

150

140

40

40

36

34

37

Interest on money market deposits

170

104

55

52

34

29

29

Interest on other time deposits

1,929

1,808

528

478

444

479

478

Interest on Federal Home Loan Bank    

   advances and other  borrowings

93

18

45

41

3

4

5

     Total interest expense

2,342

2,070

668

611

517

546

549



Net interest income

15,645

12,171

4,385

4,072

3,636

3,552

3,301

Provision for loan losses

1,500

586

145

775

278

302

123

     Net interest income after provision

        for loan losses

14,145

11,585

4,240

3,297

3,358

3,250

3,178

OTHER INCOME:








Deposit account service charges

487

429

135

130

123

99

107

Gain on securities available for sale

214

105

-

-

-

214

-

Other fee income

564

483

125

232

95

112

79

     Total other income

1,265

1,017

260

362

218

425

186

OTHER EXPENSES:








Salaries and employee benefits

7,526

5,679

1,873

1,965

1,822

1,866

1,445

Furniture and equipment expenses

1,114

1,050

290

282

277

265

281

Advertising and marketing

394

175

157

99

81

57

71

Occupancy expenses

684

834

162

162

169

191

154

Outside services

387

321

156

74

79

78

93

Administrative expenses

327

345

84

87

79

77

98

Other operating expenses

1,914

1,693

549

458

462

445

411

     Total other expenses

12,346

10,097

3,271

3,127

2,969

2,979

2,553



INCOME BEFORE INCOME TAXES

3,064

2,505

1,229

532

607

696

811









Income tax expense

894

752

283

179

201

231

223

NET INCOME

$  2,170

$  1,753

$     946

$     353

$     406

$     465

$     588

















Net income per common share,

   basic and diluted

$    0.51

$    0.64

$     0.22

$     0.08

$     0.10

$     0.11

$     0.21

Weighted average number of shares,

   basic and diluted

4,230,717

2,726,316

4,226,098

4,232,811

4,235,755

4,226,685

2,803,216

 

 

 

Contact:

Jeff W. Dick


(703) 481-4567

  

SOURCE MainStreet Bank



RELATED LINKS

http://www.mstreetbank.com