MainStreet Bank Continues Record Performance

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Jan 30, 2015, 11:49 ET

FAIRFAX, Va., Jan. 30, 2015 /PRNewswire/ -- MainStreet Bank (OTCQB: MNSB) completed 2014 with fully taxed income of $1.753 million, 73% higher than that reported for 2013.

"We had a great year all-around," said Chairman, CEO and President Jeff W. Dick. "Our loan portfolio and our deposit base each grew by 20%. Along with record earnings, we raised new capital and we added depth to the lending and deposit teams - the results of which will support future growth for the Bank."

"The market responded very favorably to our capital raise prior to year-end. Existing shareholders, customers and institutional investors significantly oversubscribed to the offering, which was contained at the $12.75 million original amount. Subsequent to the offering, the share price has traded up 5%," said Dick.

The Bank reports total assets of $345 million, gross loans of $272 million and total deposits of $302 million. The Bank remains very well capitalized and loan quality remains extremely strong.

MainStreet Bank recently released an iPad App to complement its mobile App for 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 operates five branches in Herndon, Fairfax, Fairfax City, McLean and Clarendon. In addition, MainStreet has 55,000 free ATMs and an online banking solution called "airbanking^®". 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 600 businesses in the Metropolitan area and across the United States.

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 $55 million. 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.


FINANCIAL HIGHLIGHTS (Unaudited)

	Year Ended
	(000's except share data)
Operations	12/31/14	12/31/13	% Change
Interest income	$ 14,241	$ 12,291	15.9
Interest expense	2,070	2,015	2.7
Net interest income	12,171	10,276	18.4
Provision for loan losses	586	224	161.6
Net interest income after provision for loan losses	11,585	10,052	15.3
Other income	1,017	858	18.5
Operating expenses	10,097	9,395	7.5
Income before income taxes	2,505	1,515	65.3
Income taxes	752	502	49.8
Net income	$ 1,753	$ 1,013	73.1

Per Share Data
Earnings per share (basic and diluted)	$ 0.64	$ 0.38	68.4
Book value per share, exclusive of nonvested shares	$ 9.71	$ 9.99	(2.8)
Closing stock price	$ 8.90	$ 8.10	9.9
Weighted average shares (basic and diluted)	2,726,316	2,689,013

Selected Balance Sheet Data
Investments	$ 53,675	$ 35,494	51.2
Gross Loans	$ 272,126	$ 226,187	20.3
Total Assets	$ 344,902	$ 277,314	24.4
Deposits	$ 302,355	$ 250,361	20.8
Federal Funds and Repurchase Agreements	$ 1,613	$ 1,156	39.5
Borrowings	$ 292	$ 342	(14.6)
Stockholders' Equity	$ 39,763	$ 25,292	57.2

Ratios
Return on average assets	0.56%	0.38%
Return on average equity	6.62%	4.08%
Gross loans to deposits	90.00%	90.34%
Net interest margin	4.13%	4.03%
Efficiency ratio	77.17%	84.51%
Allowance for loan losses to total loans	1.01%	1.09%
Past due loans 30-89 days to total gross loans	0.00%	0.00%
Past due loans 90 days or more to total gross loans	0.00%	0.00%
Non-accrual loans to total gross loans	0.19%	1.02%

Regulatory Capital Ratios
Tier 1 risk-based capital ratio	13.68%	10.63%
Total risk-based capital ratio	14.63%	11.65%
Leverage ratio	13.68%	10.17%