MainStreet Bank Has Another Profitable Year

Jan 26, 2010, 15:15 ET from MainStreet Bank

HERNDON, Va., Jan. 26 /PRNewswire-FirstCall/ -- MainStreet Bank (OTC Bulletin Board: MNSB) reported net income of $579 thousand for the year-ended December 31, 2009.    

Chairman, President & CEO Jeff W. Dick said "We continue to be profitable, which is a badge of honor on its own, given our current economic climate.  We closed the year with total assets at $236 million, and we are working diligently to build upon a solid balance sheet.  Perhaps even more significant, we originated over $52 million in loans within our community this past year."

After five years of operations, asset quality remains strong. The bank had two non-performing loans as of December 31, 2009.  The bank only had one loan past due between 30 - 89 days.  

MainStreet opened a branch located at 6832 Old Dominion Drive in McLean on December 14, 2009 and is in the process of opening another branch located at 1000 North Hyland Street in Arlington.  The Bank is headquartered at 727 Elden Street in Herndon and also has a branch at 4029 Chain Bridge Road in Fairfax.  

With a robust and easy-to-use online banking technology, MainStreet has "put our bank" in well over 300 businesses in the Metropolitan area and across the United States.  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®.  Using MainStreet Bank's secure website, business customers can do everything they can do in a branch, including:  managing accounts, paying bills, transferring funds, initiating ACH and wire transfers, sweeping funds, making loan payments, advancing from lines of credit, and depositing cash.  The technology interfaces with Intuit® and Microsoft® accounting software for greater efficiency in accounting and finance operations.  For accounts payable, customers can also build in reminders, customize loan payments, and set up regular funds transfers.  

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 FDIC insurance on deposits up to $50 million.  Further information on the Bank can be obtained by visiting its website at

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 quarterly and annual reports filed with the Board of Governors of the Federal Reserve System.  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.  

                                   MainStreet Bank
                            Financial Highlights (Unaudited)

                                            (000's except share
                                        12/31/09         12/31/08  % Change
     Interest income                     $10,917          $10,178       7.3
     Interest expense                      4,623            4,693      (1.5)
                                           -----            -----      ----
     Net interest income                   6,294            5,485      14.7
     Provision for loan losses               758              385      96.9
                                             ---              ---      ----
     Net interest income after
      provision for loan losses            5,536            5,100       8.5
     Other income                            672              328     104.9
     Operating expenses                    5,981            5,328      12.3
                                           -----            -----      ----
     Income (loss) before income taxes       227              100     127.0
     Income taxes (benefit)                 (352)               -         -
                                            ----              ---       ---
     Net income                             $579             $100     479.0
                                            ====             ====     =====

     Per Share Data
     Earnings per share (basic and
      diluted)                             $0.23            $0.04     475.0
     Book value per share, exclusive
      of nonvested shares                  $9.17            $8.82       4.0
     Closing stock price                   $5.05            $5.00       1.0
     Weighted average shares (basic
      and diluted)                     2,565,687        2,425,603

     Selected Balance Sheet Data
     Investments                         $29,918          $30,464     (1.8)
     Gross Loans                        $184,273         $143,298     28.6
     Total Assets                       $236,124         $186,326     26.7
     Deposits                           $189,838         $142,458     33.3
     Federal Funds and Repurchase
      Agreements                          $2,709           $1,289    110.2
     Borrowings                          $20,542          $20,592     (0.2)
     Stockholders' Equity                $22,399          $21,429      4.5

       Return on average assets             0.28%            0.06%
       Return on average equity             2.66%            0.47%
       Gross loans to deposits             97.07%          100.59%
       Net interest margin                  3.37%            3.33%
       Efficiency ratio                    85.85%           91.65%
       Allowance for loan losses to
        total loans                         1.29%            1.13%
       Past due loans 30-89 days to
        total gross loans                   0.02%            0.56%
       Past due loans 90 days or more to
        total gross loans                   0.00%            0.00%
       Non-accrual loans to total gross
        loans                               1.66%            0.28%

       Regulatory Capital Ratios
       Tier 1 risk-based capital ratio      11.46%          15.03%
       Total risk-based capital ratio       12.69%          16.11%
       Leverage ratio                       10.18%          12.49%

       Balance Sheet (averages)
       Investments                       $31,638         $26,151          21.0
       Gross Loans                      $158,267        $128,939          22.7
       Total Assets                     $207,228        $169,004          22.6
       Deposits                         $162,452        $127,210          27.7
       Borrowings                        $20,568         $17,708          16.2
       Stockholders' Equity              $21,749         $21,342           1.9

CONTACT: Jeff W. Dick, +1-703-481-4567

SOURCE MainStreet Bank