MainStreet Bank Reports Solid Performance for First Half of 2015

Fairfax, VA – MainStreet Bank (OTCQB: MNSB) completed the first half of 2015 with net income of $871 thousand, up 63% from the first half of 2014 reported earnings of $536 thousand. The increase was primarily driven by an increase in net interest income as a result of period-over-period growth. Fully diluted earnings per share for the first half of 2015 were 21 cents as compared with 20 cents for the first half of 2014. However, the weighted average shares outstanding increased by 1,531,203 between the two periods, largely due to a capital raise that occurred at the end of 2014.
Net interest income increased by approximately $1.4 million during the first half of 2015 compared to 2014. Net interest income totaled approximately $7.2 million during the period, representing a net interest margin of 4.25%.

Total assets on June 30, 2015 were $375.6 million, compared to $345 million at the end of 2014.

Loans outstanding increased by $36.3 million during the first half, from $269.1 million on Dec. 31, 2014 to $305.4 million on June 30, 2015. Loans have increased by $58.2 million in the year since June 30, 2014.

Total deposits increased by $30.3 million during the first half of 2015 reaching $332.7 million. Total deposits increased by $44.5 million, or 15%, since the same period in 2014. Year over year demand account balances increased by $20.7 million, while money market and interest checking accounts increased by $14.5 million, increases of 55% and 20% respectively. Conversely, time deposits only increased by $4.2 million, or 2%, during the same period.

MainStreet recorded a loan loss provision of $580 thousand in the first half of 2015, compared to $123 thousand in 2014. The difference is primarily attributable to loan growth and the balance has remained consistently near 1% with only nominal losses.

Asset quality remains very strong. Nonperforming loans were 0.14 percent of total loans on June 30, 2015. As a comparison, the average for the 1,239 banks in MainStreet’s national peer group is 1.05% as of March 31, 2015, or 7.5 times higher than MainStreet’s loan portfolio.

For the first half of 2015, non-interest income was $643 thousand, compared to $387 thousand for the same period in 2014. Non-interest expense in the first half of 2015 was $5.9 million, compared to $4.9 million in the first half of 2014. The increase was driven primarily by personnel related expenses associated with the growth and expansion during 2014, which allowed the company to experience high quality growth.

QUOTES: “We have made solid progress during the past two years. We are a bank that has an established infrastructure that can support good quality growth going forward,” says Jeff W. Dick, Chairman, CEO and President of MainStreet Bank. “As we grow, we will reap the benefits of that infrastructure and continue to improve the efficiency of the organization.”

ABOUT MAINSTREET BANK: 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.

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, which works on 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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