MainStreet Bank Reports Another Record Year

Fairfax, VA – 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.

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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.


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