MainStreet Bank Reports Mid-Year Results

FAIRFAX, Va., July 3, 2014 (GLOBE NEWSWIRE) -- MainStreet Bank (OTCQB:MNSB) ended the first half of 2014 with pre-tax earnings of $817,000 and nearly $316 million in total assets.

"Our loan portfolio has grown nearly 12% since this time last year," said Chairman, CEO & President Jeff W. Dick. "And our deposit base has grown over 21% during that same time period. Probably the most gratifying metric for us is the continued high quality of our loan portfolio. A close second to that factor is the progress we've made to contain costs and improve the overall efficiency of our organization."

The Bank reports total assets of $315.9 million, gross loans of $249.9 million and total deposits of $288.2 million. The Bank remains very well capitalized.

MainStreet Bank is also announcing later hours for its Clarendon customers. Starting July 14th, the Clarendon branch will be open until 7pm weekdays for greater customer convenience.

MainStreet Bank recently upgraded its mobile App to further improve its customer's ability to Bank Where You Breathe®. 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 card, credit card and electronic checks. The Bank has opened relationships for the Red Cross, the Leukemia and Lymphoma Society, Active Minds, St. Jude's, The Boys and Girls Club of Greater Washington, and many others. Visit to learn more.

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 $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 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.

MainStreet Bank
Year Ended
(000's except share data)
Operations 6/30/14 6/30/13 %
Interest income $6,820 $6,112 11.6
Interest expense 995 1,040 (4.3)
Net interest income 5,825 5,072 14.8
Provision for loan losses 464 145 220.0
Net interest income after provision for loan losses 5,361 4,927 8.8
Other income 386 424 (9.0)
Operating expenses 4,930 4,784 3.1
Income before income taxes 817 567 44.1
Income taxes 281 193 45.6
Net income $536 $374 43.3
Per Share Data
Earnings per share (basic and diluted) $0.20 $0.14 42.9
Book value per share, exclusive of nonvested shares $10.13 $9.68 4.6
Closing stock price $8.50 $7.60 11.8
Weighted average shares (basic and diluted) 2,700,042 2,688,660
Selected Balance Sheet Data
Investments $45,881 $16,455 178.8
Gross Loans $249,945 $223,825 11.7
Total Assets $315,861 $265,503 19.0
Deposits $288,195 $238,065 21.1
Federal Funds and Repurchase Agreements $678 $353 92.1
Borrowings $317 $367 (13.6)
Stockholders' Equity $26,213 $24,807 5.7
Return on average assets 0.36% 0.28%
Return on average equity 4.18% 3.00%
Gross loans to deposits 86.73% 94.02%
Net interest margin 4.18% 3.98%
Efficiency ratio 79.38% 87.04%
Allowance for loan losses to total loans 1.07% 1.07%
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 0.85% 0.98%
Regulatory Capital Ratios
Leverage ratio 9.76% 10.84%
Balance Sheet (averages)
Investments $30,620 $15,924 92.3
Gross Loans $238,388 $216,807 10.0
Total Assets $315,861 $270,473 16.8
Deposits $270,363 $242,186 11.6
Borrowings $330 $2,723 (87.9)
Stockholders' Equity $25,678 $24,776 3.6
nm = not material

CONTACT: Jeff W. Dick (703) 481-4567Source:MainStreet Bank