Main Street Banks (NASDAQ:MSBK)
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Main Street Banks Reports First Quarter Earnings
ATLANTA, April 20 /PRNewswire-FirstCall/ -- Main Street Banks, Inc.
(NASDAQ:MSBK) reported net income of $8.2 million for the three months ended
March 31, 2005 compared to $7.6 million in the first quarter of 2004, an
increase of 7.9 percent. Diluted earnings per share for the first quarter of
2005 were $0.38 versus $0.38 for the first quarter of 2004. Return on average
assets was 1.40 percent for the first quarter of 2005 and return on average
shareholder's equity was 11.7 percent.
First quarter results were impacted by a previously announced non-cash charge
of $0.4 million, or $0.02 per share, for the demolition of the Conyers, GA
banking center. Main Street has chosen to delay its adoption of FAS 123R,
relating to stock option expensing, until 2006. The company had previously
disclosed that it would adopt FAS 123R in the first quarter of 2005 and that
the adoption would lower annual earnings by approximately $0.6 million, or
$0.03 per share, in 2005.
"We are pleased with the performance of Main Street Banks in the first quarter
of 2005, despite having lowered our expectations for 2005 earnings growth last
month," said Samuel B. Hay III, chief executive officer. "We grew both sides
of our balance sheet at double digit rates over the first quarter of 2004 and
foresee continued strong growth in the future. The Atlanta economy remains
vibrant and is providing us continued opportunities for growth. While our
earnings per share were flat and loan losses and non- performing assets
increased in the quarter, we expect continued improvement in all facets of our
business this year."
Strong Loan Growth But Losses and Problem Assets Rise
As of March 31, 2005, Main Street Banks' loans outstanding were $1.744 billion,
reflecting an increase of $233 million, or 15.4 percent, compared to the same
period last year. Annualized net charge-offs increased to 0.56 percent of
average loans for the first quarter of 2005 from 0.15 percent in the first
quarter of 2004. Non-performing assets increased in the first quarter to 0.90
percent from 0.62 percent of assets at the end of the fourth quarter. The
allowance for loan losses at March 31, 2005 was $25.0 million and represented
1.43 percent of loans outstanding at the end of the period, compared to $22.2
million and 1.47 percent of loans outstanding at the end of the first quarter
of 2004. The reduction in the allowance for loan losses in percentage terms is
due primarily to the elimination of specific reserves on previously identified
problem loans which were charged off during the quarter.
In the first quarter of 2005, approximately one-half of the company's net
charge-offs and one-third of the increase in non-performing assets were
attributable to loans made by a former loan officer of Main Street. This
lender also originated the $2.5 million problem loan relationship which the
company announced in November 2004 and on which it incurred an impairment
charge of $0.06 per diluted share in the fourth quarter of 2004. During the
first quarter of 2005, Main Street identified $1,400,000 in other loans in this
lender's portfolio which were ultimately determined to be impaired. The
remainder of the increase in non-performing assets is due to several smaller
relationships that are generally well-secured by real estate in accordance with
bank policy.
Transaction Deposits Show Strong Growth
As of March 31, 2005, Main Street Banks' total deposits were $1.746 billion,
reflecting an increase of $215 million, or 14.0 percent, compared to the same
period last year. The company's deposit mix continued to improve as low cost
core deposits grew 20.6 percent compared to March 31, 2004, while reliance on
higher cost certificates of deposit was reduced through the company's emphasis
on transaction account growth. Funding costs have risen rapidly in the Atlanta
market, however, and promotional rates on money market deposits have negatively
impacted Main Street's net interest margin. Low cost core deposits totaled
$958.6 million at March 31, 2005 compared to $794.7 million at March 31, 2004,
an increase of $164 million.
Net Interest Margin Declines Slightly
Main Street's net interest margin was 4.18 percent for the first quarter of
2005, down from 4.23 percent in the previous quarter. The reduction in margin
from the fourth quarter of 2004 was the result of cost of funds increasing by
six basis points in excess of the increase in earning asset yield. Price
competition for deposits in the Atlanta market has recently intensified and
relative flatness of the interest rate yield curve has also contributed to
margin pressure. Main Street's taxable equivalent net interest income totaled
$21.8 million for the first quarter of 2005, an increase of $1.7 million or 8.5
percent, compared to the first quarter of 2004.
Noninterest Income Up Over Previous Year
Excluding the non-cash charge associated with the demolition and reconstruction
of a banking center in Conyers, GA, noninterest income increased 8.0 percent
compared to March 31, 2004. The company reported total noninterest income of
$7.9 million for the first quarter of 2005, an increase of 1.3 percent over the
first quarter of 2004. Solid growth in income from insurance agency
commissions and income from SBA lending contributed to this increase.
Insurance agency revenue totaled $3.2 million for the first quarter of 2005, an
increase of 14.3 percent or $0.4 million compared to the first quarter last
year. Income from SBA lending totaled $0.8 million for the first quarter of
2005, an increase of 60% or $0.3 million compared to the first quarter last
year.
Efficiency Ratio Improves
Main Street Banks' efficiency ratio for the first quarter of 2005 was 52.5
percent versus 56.1 percent for the first quarter of 2004. Noninterest expense
for the first quarter of 2005 was $15.5 million, a decrease of 0.6 percent
compared to noninterest expense in the first quarter of 2004.
"Excluding the costs associated with our core systems conversion in the second
quarter of 2004, we have held total expenses constant over the last five
quarters," Hay added. "We are especially proud of this expense stewardship as
we continue to grow our balance sheet at double digit rates annually."
Strong Interest in CFO Search
Under the leadership of Korn/Ferry International, Main Street is currently
conducting a search for a chief financial officer, a position which became
vacant in January 2005. The recruiting effort is focused primarily on large
banks in the Southeast and the company is experiencing strong interest in the
position. Main Street is hopeful that it will conclude the search in the next
few weeks.
About Main Street
Main Street Banks, Inc., a $2.3 billion asset, community-banking organization
based in metropolitan Atlanta, provides a broad range of banking, brokerage,
insurance, and mortgage products and services through its 23 banking centers
located in eighteen of Georgia's fastest growing communities. Main Street is
the largest community banking organization in the Atlanta metropolitan area.
Safe Harbor
Statements made in this press release, other than those containing historical
information, are forward-looking statements made pursuant to the safe harbor
provisions of the Private Securities Litigation Act of 1995. Such statements
involve risks and uncertainties that may cause results to differ materially
from those set forth in these statements. Main Street cautions readers that
results and events subject to forward-looking statements could differ
materially due to the following factors: possible changes in market, economic
and business conditions; the ability of Main Street to integrate acquisitions,
attract new customers and to grow its balance sheet; possible changes in
monetary and fiscal policies, laws and regulations; the effects of easing of
restrictions on participants in the financial services industry; the cost and
other effects of legal and administrative cases; possible changes in the credit
worthiness of customers and the possible impairment of loans; the effects of
changing interest rates and other risks and factors identified in the company's
filings with the Securities and Exchange Commission. Main Street Banks, Inc.
undertakes no obligation to revise these statements following the date of this
press release.
This press release contains financial information determined by methods other
than in accordance with Generally Accepted Accounting Principles ("GAAP"). Main
Street Banks, Inc.'s management uses these non-GAAP measures in their analysis
of the company's performance. These measures adjust GAAP performance to exclude
the effects of the amortization of intangibles in the determination of "cash
basis" performance measures. These non-GAAP measures may also exclude other
significant gains, losses or expenses that are unusual in nature and not
expected to recur. Since these items and their impact on Main Street's
performance are difficult to predict, management believes presentations of
financial measures excluding the impact of these items provide useful
supplemental information that is important to a proper understanding of the
operating results of Main Street's core businesses. These disclosures should
not be viewed as a substitute for results determined in accordance with GAAP,
nor are they necessarily comparable to non-GAAP performance measures that may
be presented by other companies.
For additional information about Main Street Banks, Inc.'s financial
performance, products and services, please visit our web site at
http://www.mainstreetbank.com/ .
To hear a live webcast of Main Street Banks, Inc.'s first quarter earnings
conference call at 10 a.m. (EDT) today, please visit our web site at
http://www.mainstreetbank.com/ . Beginning April 21, and for a limited time
thereafter, listeners may access archived versions of the presentation via the
website or at 1-800-839-0866 (inside US) or 402-220-0662 (outside US).
Financial Tables Follow
MAIN STREET BANKS, INC. AND SUBSIDIARIES
AVERAGE BALANCE SHEET
(Unaudited)
First Fourth Third
Quarter Quarter Quarter
2005 2004 2004
ASSETS
Cash and due from banks $38,413,540 $40,385,275 $39,565,158
Interest-bearing deposits
in banks 243,567 323,412 662,555
Federal funds sold and
securities purchased
under agreements to
resell 13,026,003 36,014,795 1,037,646
Investment securities
available for sale 305,185,107 282,198,873 276,497,775
Investment securities held
to maturity 11,556,504 11,733,821 11,945,588
Other investments 26,130,642 21,866,256 24,140,813
Mortgage loans held for
sale 4,833,054 7,413,513 5,954,007
Loans, net of unearned
income 1,731,088,740 1,670,976,218 1,620,436,393
Allowance for loan losses (25,278,951) (24,559,019) (23,402,241)
Loans, net 1,705,809,789 1,646,417,199 1,597,034,152
Premises and equipment,
net 53,664,240 52,672,981 50,125,904
Other real estate 2,254,889 1,868,635 1,914,645
Accrued interest
receivable 9,721,005 9,091,675 9,058,791
Goodwill and other
intangible assets 102,295,536 103,299,382 103,470,116
Bank owned life insurance 44,896,055 41,722,058 41,191,340
Other assets 17,025,196 16,774,679 14,198,902
Total assets $2,335,055,127 $2,271,782,554 $2,176,797,392
LIABILITIES
Total deposits $1,709,580,366 $1,687,864,307 $1,584,818,716
Accrued interest payable 3,873,319 3,678,457 3,312,458
Federal Home Loan Bank
advances 199,122,844 205,771,676 158,242,407
Federal funds purchased
and securities sold
under repurchase
agreements 82,413,785 80,364,169 153,386,148
Subordinated debt 51,547,000 51,547,000 51,547,000
Other liabilities 7,795,279 7,761,366 7,432,893
Total liabilities 2,054,332,593 2,036,986,975 1,958,739,621
SHAREHOLDERS' EQUITY
Common stock-no par value
per share 161,945,001 116,719,468 107,626,919
Retained earnings 128,537,617 126,192,533 120,402,848
Accumulated other
comprehensive income (970,495) 673,167 (1,182,407)
Treasury stock (8,789,589) (8,789,589) (8,789,589)
Total shareholders' equity 280,722,534 234,795,579 218,057,771
Total liabilities and
shareholders' equity $2,335,055,127 $2,271,782,554 $2,176,797,392
MAIN STREET BANKS, INC. AND SUBSIDIARIES
AVERAGE BALANCE SHEET
(Unaudited)
Second First
Quarter Quarter
2004 2004
ASSETS
Cash and due from banks $38,220,151 $37,174,008
Interest-bearing deposits in banks 660,111 206,921
Federal funds sold and securities
purchased under agreements to
resell 357,846 13,733,915
Investment securities available for
sale 270,851,196 249,633,094
Investment securities held to
maturity 11,998,340 11,233,274
Other investments 21,352,832 20,172,234
Mortgage loans held for sale 7,860,559 4,685,417
Loans, net of unearned income 1,551,258,388 1,470,876,346
Allowance for loan losses (22,505,292) (21,409,245)
Loans, net 1,528,753,096 1,449,467,101
Premises and equipment, net 46,440,339 43,622,711
Other real estate 2,584,703 2,813,337
Accrued interest receivable 7,874,920 7,614,443
Goodwill and other intangible assets 103,445,869 98,655,805
Bank owned life insurance 41,471,029 37,904,493
Other assets 14,863,167 10,054,978
Total assets $2,096,734,158 $1,986,971,731
LIABILITIES
Total deposits $1,547,738,831 $1,466,086,785
Accrued interest payable 3,129,282 3,023,843
Federal Home Loan Bank advances 148,344,127 147,072,474
Federal funds purchased and
securities sold under repurchase
agreements 126,594,813 110,799,890
Subordinated debt 51,547,000 50,000,000
Other liabilities 4,329,275 4,717,074
Total liabilities 1,881,683,328 1,781,700,066
SHAREHOLDERS' EQUITY
Common stock-no par value per share 107,346,374 102,361,167
Retained earnings 114,838,884 107,198,497
Accumulated other comprehensive
income 1,655,161 4,501,139
Treasury stock (8,789,589) (8,789,138)
Total shareholders' equity 215,050,830 205,271,665
Total liabilities and shareholders'
equity $2,096,734,158 $1,986,971,731
MAIN STREET BANKS, INC. AND SUBSIDIARIES
AVERAGE BALANCE SHEET
(Unaudited)
March 31, March 31,
2005 2004
ASSETS
Cash and due from banks $38,413,540 $37,174,008
Interest-bearing deposits in banks 243,567 206,921
Federal funds sold and securities
purchased under agreements to
resell 13,026,003 13,733,915
Investment securities available for
sale 305,185,107 249,633,094
Investment securities held to
maturity 11,556,504 11,233,274
Other investments 26,130,642 20,172,234
Mortgage loans held for sale 4,833,054 4,685,417
Loans, net of unearned income 1,731,088,740 1,470,876,346
Allowance for loan losses (25,278,951) (21,409,245)
Loans, net 1,705,809,789 1,449,467,101
Premises and equipment, net 53,664,240 43,622,711
Other real estate 2,254,889 2,813,337
Accrued interest receivable 9,721,005 7,614,443
Goodwill and other intangible assets 102,295,536 98,655,805
Bank owned life insurance 44,896,055 37,904,493
Other assets 17,025,196 10,054,978
Total assets $2,335,055,127 $1,986,971,731
LIABILITIES
Total deposits $1,709,580,366 $1,466,086,785
Accrued interest payable 3,873,319 3,023,843
Federal Home Loan Bank advances 199,122,844 147,072,474
Federal funds purchased and
securities sold under repurchase
agreements 82,413,785 110,799,890
Subordinated debt 51,547,000 50,000,000
Other liabilities 7,795,279 4,717,074
Total liabilities 2,054,332,593 1,781,700,066
SHAREHOLDERS' EQUITY
Common stock-no par value per share 161,945,001 102,361,167
Retained earnings 128,537,617 107,198,497
Accumulated other comprehensive
income (970,495) 4,501,139
Treasury stock (8,789,589) (8,789,138)
Total shareholders' equity 280,722,534 205,271,665
Total liabilities and shareholders'
equity $2,335,055,127 $1,986,971,731
MAIN STREET BANKS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Unaudited)
First Fourth Third
Quarter Quarter Quarter
2005 2004 2004
ASSETS
Cash and due from banks $37,016,874 $35,090,563 $55,719,486
Interest-bearing deposits
in banks 144,243 317,953 1,058,235
Federal funds sold and
securities purchased
under agreements to
resell 1,241,968 35,812,949 24,410,000
Investment securities
available for sale 288,157,730 315,520,771 282,814,235
Investment securities held
to maturity 11,510,170 11,715,948 11,835,353
Other investments 24,726,552 23,781,977 23,040,424
Mortgage loans held for
sale 5,915,770 4,562,962 6,931,843
Loans, net of unearned
income 1,743,589,208 1,699,035,573 1,653,615,534
Allowance for loan losses (24,983,997) (25,191,175) (24,256,034)
Loans, net 1,718,605,211 1,673,844,398 1,629,359,500
Premises and equipment,
net 53,248,494 53,469,516 52,504,434
Other real estate 1,888,882 2,141,040 1,082,267
Accrued interest
receivable 9,577,443 9,762,826 9,243,097
Goodwill and other
intangible assets 102,294,796 102,169,572 103,392,163
Bank owned life insurance 57,586,480 42,056,525 41,528,162
Other assets 16,324,041 16,286,895 15,473,682
Total assets $2,328,238,654 $2,326,533,895 $2,258,392,881
LIABILITIES
Total deposits $1,746,438,371 $1,710,209,913 $1,630,286,409
Accrued interest payable 4,365,986 3,955,183 3,488,406
Federal Home Loan Bank
advances 185,936,423 201,070,198 226,203,972
Federal funds purchased
and securities sold
under repurchase
agreements 56,563,910 73,367,456 115,191,909
Subordinated debt 51,547,000 51,547,000 51,547,000
Other liabilities 2,897,625 8,300,069 9,353,208
Total liabilities 2,047,749,315 2,048,449,819 2,036,070,904
SHAREHOLDERS' EQUITY
Common stock-no par value
per share 162,418,990 159,520,536 108,197,312
Retained earnings 131,273,960 127,566,247 121,717,798
Accumulated other
comprehensive income (4,414,022) (213,118) 1,196,456
Treasury stock (8,789,589) (8,789,589) (8,789,589)
Total shareholders' equity 280,489,339 278,084,076 222,321,977
Total liabilities and
shareholders' equity $2,328,238,654 $2,326,533,895 $2,258,392,881
MAIN STREET BANKS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Unaudited)
Second First
Quarter Quarter
2004 2004
ASSETS
Cash and due from banks $42,090,671 $31,901,310
Interest-bearing deposits in banks 1,078,334 588,694
Federal funds sold and securities
purchased under agreements to
resell 713,000 5,644,000
Investment securities available for
sale 272,596,604 263,304,831
Investment securities held to
maturity 11,998,436 11,998,297
Other investments 23,876,638 19,205,358
Mortgage loans held for sale 6,221,181 7,208,105
Loans, net of unearned income 1,594,290,721 1,511,436,809
Allowance for loan losses (23,118,946) (22,150,651)
Loans, net 1,571,171,775 1,489,286,158
Premises and equipment, net 48,391,110 45,167,765
Other real estate 1,914,985 2,255,553
Accrued interest receivable 9,060,367 8,293,918
Goodwill and other intangible assets 103,514,753 103,381,314
Bank owned life insurance 41,006,405 41,595,547
Other assets 13,530,493 15,801,590
Total assets $2,147,164,752 $2,045,632,440
LIABILITIES
Total deposits $1,566,290,310 $1,530,979,973
Accrued interest payable 3,284,308 3,210,642
Federal Home Loan Bank advances 166,337,747 156,471,522
Federal funds purchased and
securities sold under repurchase
agreements 142,324,882 83,930,239
Subordinated debt 51,547,000 51,547,000
Other liabilities 5,413,930 4,116,702
Total liabilities 1,935,198,177 1,830,256,078
SHAREHOLDERS' EQUITY
Common stock-no par value per share 107,446,736 109,117,216
Retained earnings 116,073,951 109,299,987
Accumulated other comprehensive
income (2,764,523) 5,748,748
Treasury stock (8,789,589) (8,789,589)
Total shareholders' equity 211,966,575 215,376,362
Total liabilities and shareholders'
equity $2,147,164,752 $2,045,632,440
MAIN STREET BANKS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Unaudited)
March 31, March 31,
2005 2004
ASSETS
Cash and due from banks $37,016,874 $31,901,310
Interest-bearing deposits in banks 144,243 588,694
Federal funds sold and securities
purchased under agreements to
resell 1,241,968 5,644,000
Investment securities available for
sale 288,157,730 263,304,831
Investment securities held to
maturity 11,510,170 11,998,297
Other investments 24,726,552 19,205,358
Mortgage loans held for sale 5,915,770 7,208,105
Loans, net of unearned income 1,743,589,208 1,511,436,809
Allowance for loan losses (24,983,997) (22,150,651)
Loans, net 1,718,605,211 1,489,286,158
Premises and equipment, net 53,248,494 45,167,765
Other real estate 1,888,882 2,255,553
Accrued interest receivable 9,577,443 8,293,918
Goodwill and other intangible assets 102,294,796 103,381,314
Bank owned life insurance 57,586,480 41,595,547
Other assets 16,324,041 15,801,590
Total assets $2,328,238,654 $2,045,632,440
LIABILITIES
Total deposits 1,746,438,371 $1,530,979,973
Accrued interest payable 4,365,986 3,210,642
Federal Home Loan Bank advances 185,936,423 156,471,522
Federal funds purchased and
securities sold under repurchase
agreements 56,563,910 83,930,239
Subordinated debt 51,547,000 51,547,000
Other liabilities 2,897,625 4,116,702
Total liabilities 2,047,749,315 1,830,256,078
SHAREHOLDERS' EQUITY
Common stock-no par value per share 162,418,990 109,117,216
Retained earnings 131,273,960 109,299,987
Accumulated other comprehensive
income (4,414,022) 5,748,748
Treasury stock (8,789,589) (8,789,589)
Total shareholders' equity 280,489,339 215,376,362
Total liabilities and shareholders'
equity $2,328,238,654 $2,045,632,440
MAIN STREET BANKS, INC. AND SUBSIDIARIES
LOAN AND DEPOSIT STRATIFICATION
(Unaudited)
First Fourth Third
Quarter Quarter Quarter
2005 2004 2004
LOAN PORTFOLIO
Real estate:
Residential Mortgage $292,668,159 $288,703,328 $284,647,539
Construction 441,950,621 401,815,256 379,468,496
Commercial real estate 839,695,408 846,945,431 826,434,480
Commercial and Industrial 131,834,826 127,476,473 129,790,889
Consumer 40,511,373 36,966,630 35,901,922
Unearned income (3,071,179) (2,871,545) (2,627,791)
Total loans $1,743,589,208 $1,699,035,573 $1,653,615,534
Loan growth 2.6% 2.7% 3.7%
Loan growth, annualized 10.5% 10.9% 14.8%
DEPOSITS
Non-interest bearing
demand $246,540,893 $224,958,448 $236,808,861
Interest bearing demand 106,239,993 107,167,500 111,972,487
Money Market 438,618,786 407,981,856 346,698,652
Savings 38,536,406 39,401,660 40,705,887
Total transaction accounts 829,936,078 779,509,464 736,185,886
Public funds - transaction 128,668,607 150,534,921 132,267,045
Total low cost core
deposits 958,604,685 930,044,385 868,452,931
Time deposits - public
funds 5,719,970 13,696,451 14,012,373
Time deposits 782,113,716 766,469,077 747,821,105
Total deposits $1,746,438,371 $1,710,209,913 $1,630,286,409
Deposit growth 2.1% 4.9% 4.1%
Deposit growth, annualized 8.5% 19.5% 16.3%
Percentage low cost core
to total deposits 54.9% 54.4% 53.3%
Percentage growth of low
cost core deposits 3.1% 7.1% 6.0%
Annualized growth of low
cost core deposits 12.3% 28.2% 23.7%
MAIN STREET BANKS, INC. AND SUBSIDIARIES
LOAN AND DEPOSIT STRATIFICATION
(Unaudited)
Second First
Quarter Quarter
2004 2004
LOAN PORTFOLIO
Real estate:
Residential Mortgage $282,754,653 $280,453,804
Construction 348,685,270 314,171,269
Commercial real estate 795,114,435 762,815,561
Commercial and Industrial 132,379,349 116,735,287
Consumer 37,602,059 39,063,480
Unearned income (2,245,045) (1,802,592)
Total loans $1,594,290,721 $1,511,436,809
Loan growth 5.5% 4.7%
Loan growth, annualized 22.0% 19.0%
DEPOSITS
Non-interest bearing demand $232,319,420 $227,159,637
Interest bearing demand 109,183,366 112,043,973
Money Market 347,395,886 313,554,963
Savings 40,307,875 40,074,116
Total transaction accounts 729,206,548 692,832,689
Public funds - transaction 90,423,130 101,844,740
Total low cost core deposits 819,629,677 794,677,429
Time deposits - public funds 15,991,062 17,565,349
Time deposits 730,669,570 718,737,195
Total deposits $1,566,290,310 $1,530,979,973
Deposit growth 2.3% 5.0%
Deposit growth, annualized 9.3% 19.9%
Percentage low cost core to total
deposits 52.3% 51.9%
Percentage growth of low cost core
deposits 3.1% 4.4%
Annualized growth of low cost core
deposits 12.6% 17.5%
MAIN STREET BANKS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(Unaudited)
First Fourth Third
Quarter Quarter Quarter
2005 2004 2004
NET INTEREST INCOME
Loan, including fees $29,590,608 $28,519,255 $26,809,369
Interest on investment securities:
Taxable 2,761,476 2,518,397 2,428,436
Non-taxable 339,801 351,946 365,183
Federal funds sold and repurchase
agreements 66,071 147,716 2,111
Interest bearing deposits in banks 12,052 7,495 6,545
Interest on other investments 224,939 122,662 240,218
Total interest income 32,994,947 31,667,471 29,851,862
INTEREST EXPENSE
Interest-bearing demand and money
market 3,500,665 2,505,441 1,885,099
Savings 62,247 64,185 61,766
Time deposits 5,192,482 5,117,216 4,756,612
Other time deposits 43,928 65,963 64,442
Federal funds purchased 492,905 357,707 561,511
Federal Home Loan Bank advances 1,178,544 1,227,700 876,478
Interest expense on subordinated
debentures 748,720 724,326 637,085
Other 164,883 174,220 175,900
Total interest expense 11,384,374 10,236,758 9,018,893
Net interest income 21,610,573 21,430,713 20,832,969
Provision for loan losses 2,208,555 2,956,380 1,602,500
Net interest income after provision
for loan losses 19,402,018 18,474,333 19,230,469
NON-INTEREST INCOME
Service charges on deposit accounts 1,896,864 2,047,804 2,165,224
Other customer service fees 340,037 375,445 276,909
Mortgage banking revenue 692,322 721,363 809,807
Investment brokerage revenue 400,504 194,241 133,479
Insurance agency revenue 3,173,741 2,393,185 2,514,479
Income from SBA lending 829,381 946,164 1,270,397
Other income 593,431 863,542 651,387
Total non-interest income 7,926,280 7,541,744 7,821,682
NON-INTEREST EXPENSE
Salaries and other compensation 7,932,171 8,208,721 7,999,790
Employee benefits 1,620,366 1,195,115 1,170,201
Net occupancy and equipment expense 2,051,501 2,079,450 2,090,931
Data processing fees 510,076 554,645 325,617
Professional services 468,973 506,351 715,789
Communications and supplies 962,022 893,426 1,027,203
Amortization of intangible assets 128,750 122,591 122,591
Other expense 1,829,308 1,850,106 2,042,088
Total non-interest expense 15,503,167 15,410,405 15,494,210
Income before income taxes 11,825,131 10,605,672 11,557,941
Income tax expense 3,642,140 2,907,090 3,294,026
Net income $8,182,991 $7,698,582 $8,263,915
EARNINGS PER SHARE
Basic $0.38 $0.39 $0.43
Diluted $0.38 $0.38 $0.41
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic 21,277,737 19,756,947 19,428,145
Diluted 21,818,118 20,372,205 20,015,560
CASH DIVIDENDS PER SHARE $0.153 $0.135 $0.135
MAIN STREET BANKS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(Unaudited)
Second First
Quarter Quarter
2004 2004
NET INTEREST INCOME
Loan, including fees $25,473,584 $24,781,842
Interest on investment securities:
Taxable 2,362,075 2,247,038
Non-taxable 388,746 417,657
Federal funds sold and repurchase
agreements 3,751 30,399
Interest bearing deposits in banks 3,724 5,223
Interest on other investments 238,518 205,662
Total interest income 28,470,398 27,687,821
INTEREST EXPENSE
Interest-bearing demand and money
market 1,828,848 1,322,218
Savings 73,775 88,707
Time deposits 4,470,715 4,463,088
Other time deposits 64,462 55,813
Federal funds purchased 333,018 34,701
Federal Home Loan Bank advances 663,793 866,258
Interest expense on subordinated
debentures 574,946 574,946
Other 241,599 355,692
Total interest expense 8,251,156 7,761,423
Net interest income 20,219,242 19,926,398
Provision for loan losses 1,310,000 1,561,000
Net interest income after provision
for loan losses 18,909,242 18,365,398
NON-INTEREST INCOME
Service charges on deposit accounts 2,023,191 1,880,521
Other customer service fees 352,392 356,795
Mortgage banking revenue 859,631 883,128
Investment brokerage revenue 185,330 315,080
Insurance agency revenue 2,370,375 2,771,701
Income from SBA lending 367,859 485,918
Other income 1,259,930 1,146,755
Total non-interest income 7,418,708 7,839,898
NON-INTEREST EXPENSE
Salaries and other compensation 7,688,444 8,041,199
Employee benefits 1,519,972 1,640,263
Net occupancy and equipment expense 2,208,378 1,859,695
Data processing fees 223,450 557,301
Professional services 583,177 438,395
Communications and supplies 1,027,631 1,050,888
Amortization of intangible assets 121,758 140,644
Other expense 2,761,271 1,850,650
Total non-interest expense 16,134,081 15,579,035
Income before income taxes 10,193,869 10,626,261
Income tax expense 2,802,851 3,029,516
Net income $7,391,018 $7,596,745
EARNINGS PER SHARE
Basic $0.38 $0.39
Diluted $0.37 $0.38
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic 19,351,343 19,280,882
Diluted 19,974,058 19,910,810
CASH DIVIDENDS PER SHARE $0.135 $0.135
MAIN STREET BANKS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(Unaudited)
Three months ended
March 31,
2005 2004
NET INTEREST INCOME
Loan, including fees $29,590,608 $24,781,842
Interest on investment securities:
Taxable 2,761,476 2,247,038
Non-taxable 339,801 417,657
Federal funds sold and repurchase
agreements 66,071 30,399
Interest bearing deposits in banks 12,052 5,223
Interest on other investments 224,939 205,662
Total interest income 32,994,947 27,687,821
INTEREST EXPENSE
Interest-bearing demand and money
market 3,500,665 1,322,218
Savings 62,247 88,707
Time deposits 5,192,482 4,463,088
Other time deposits 43,928 55,813
Federal funds purchased 492,905 34,701
Federal Home Loan Bank advances 1,178,544 866,258
Interest expense on subordinated
debentures 748,720 574,946
Other 164,883 355,692
Total interest expense 11,384,374 7,761,423
Net interest income 21,610,573 19,926,398
Provision for loan losses 2,208,555 1,561,000
Net interest income after provision
for loan losses 19,402,018 18,365,398
NON-INTEREST INCOME
Service charges on deposit accounts 1,896,864 1,880,521
Other customer service fees 340,037 356,795
Mortgage banking revenue 692,322 883,128
Investment brokerage revenue 400,504 315,080
Insurance agency revenue 3,173,741 2,771,701
Income from SBA lending 829,381 485,918
Other income 593,431 1,146,755
Total non-interest income 7,926,280 7,839,898
NON-INTEREST EXPENSE
Salaries and other compensation 7,932,171 8,041,199
Employee benefits 1,620,366 1,640,263
Net occupancy and equipment expense 2,051,501 1,859,695
Data processing fees 510,076 557,301
Professional services 468,973 438,395
Communications and supplies 962,022 1,050,888
Amortization of intangible assets 128,750 140,644
Other expense 1,829,308 1,850,650
Total non-interest expense 15,503,167 15,579,035
Income before income taxes 11,825,131 10,626,261
Income tax expense 3,642,140 3,029,516
Net income $8,182,991 $7,596,745
EARNINGS PER SHARE
Basic $0.38 $0.39
Diluted $0.38 $0.38
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic 21,277,737 19,280,882
Diluted 21,818,118 19,910,810
CASH DIVIDENDS PER SHARE $0.153 $0.135
MAIN STREET BANKS, INC. AND SUBSIDIARIES
SUMMARY OF INTEREST RATES (TAX-EQUIVALENT*)
(Unaudited)
First Fourth Third
Quarter Quarter Quarter
2005 2004 2004
EARNING ASSETS
Total interest earning assets (in
thousands) $2,092,064 $2,030,527 $1,940,675
Loans 6.84% 6.77% 6.56%
Investment securities 4.15% 4.13% 4.11%
Federal funds sold 2.03% 1.63% 1.18%
Loans held for sale 5.87% 4.65% 4.93%
FHLB stock & other 3.60% 2.33% 3.96%
Total interest earning assets 6.36% 6.20% 6.12%
INTEREST-BEARING LIABILITIES
Total interest-bearing liabilities (in
thousands) $2,042,664 $2,025,547 $1,947,994
Demand deposits 1.61% 1.26% 0.92%
Demand deposits - public funds 1.02% 0.43% 0.61%
Time deposits 2.72% 2.72% 2.59%
Retail repurchases 1.58% 1.62% 1.62%
Federal funds purchased 2.76% 2.28% 1.68%
Federal Home Loan bank advances 2.37% 2.37% 2.20%
Securities sold under agreement to
repurchase 4.62% 4.53% 4.53%
Subordinated debentures 5.83% 5.59% 4.92%
Net Cost of Funds 2.23% 2.01% 1.84%
NET INTEREST SPREAD
Interest earning assets less interest-
bearing liabilities (in thousands) $49,400 $4,980 $(7,319)
Yield on earning assets less cost of
interest-bearing liabilities 4.13% 4.19% 4.28%
NET INTEREST MARGIN
Net interest income (tax equivalent)
as a percentage of average earning
assets 4.18% 4.23% 4.31%
MAIN STREET BANKS, INC. AND SUBSIDIARIES
SUMMARY OF INTEREST RATES (TAX-EQUIVALENT*)
(Unaudited)
Second First
Quarter Quarter
2004 2004
EARNING ASSETS
Total interest earning assets (in
thousands) $1,864,339 $1,770,541
Loans 6.58% 6.68%
Investment securities 4.20% 4.49%
Federal funds sold 1.12% 1.01%
Loans held for sale 4.57% 5.25%
FHLB stock & other 4.43% 4.03%
Total interest earning assets 6.14% 6.29%
INTEREST-BEARING LIABILITIES
Total interest-bearing liabilities
(in thousands) $1,874,225 $1,773,959
Demand deposits 0.92% 0.72%
Demand deposits - public funds 1.05% 1.07%
Time deposits 2.49% 2.49%
Retail repurchases 1.69% 1.69%
Federal funds purchased 1.37% 1.24%
Federal Home Loan bank advances 1.80% 1.77%
Securities sold under agreement to
repurchase 4.57% 4.09%
Subordinated debentures 4.49% 4.55%
Net Cost of Funds 1.77% 1.76%
NET INTEREST SPREAD
Interest earning assets less
interest-bearing liabilities (in
thousands) $(9,885) $(3,418)
Yield on earning assets less cost of
interest-bearing liabilities 4.37% 4.53%
NET INTEREST MARGIN
Net interest income (tax equivalent)
as a percentage of average earning
assets 4.41% 4.58%
MAIN STREET BANKS, INC. AND SUBSIDIARIES
SUMMARY OF INTEREST RATES (TAX-EQUIVALENT*)
(Unaudited)
Three months ended
March 31,
2005 2004
EARNING ASSETS
Total interest earning assets (in
thousands) $2,092,064 $1,770,541
Loans 6.84% 6.68%
Investment securities 4.15% 4.49%
Federal funds sold 2.03% 1.01%
Loans held for sale 5.87% 5.25%
FHLB stock & other 3.60% 4.03%
Total interest earning assets 6.36% 6.29%
INTEREST-BEARING LIABILITIES
Total interest-bearing liabilities
(in thousands) $2,042,664 $1,773,959
Demand deposits 1.61% 0.72%
Demand deposits - public funds 1.02% 1.07%
Time deposits 2.72% 2.49%
Retail repurchases 1.58% 1.69%
Federal funds purchased 2.76% 1.24%
Federal Home Loan bank advances 2.37% 1.77%
Securities sold under agreement to
repurchase 4.62% 4.09%
Subordinated debentures 5.83% 4.55%
Net Cost of Funds 2.23% 1.76%
NET INTEREST SPREAD
Interest earning assets less
interest-bearing liabilities (in
thousands) $49,400 $(3,418)
Yield on earning assets less cost of
interest-bearing liabilities 4.13% 4.53%
NET INTEREST MARGIN
Net interest income (tax equivalent)
as a percentage of average earning
assets 4.18% 4.58%
MAIN STREET BANKS, INC. AND SUBSIDIARIES
LOAN QUALITY
(Unaudited)
First Fourth Third
Quarter Quarter Quarter
2005 2004 2004
RESERVE FOR POSSIBLE LOAN LOSSES
Reserve for loan losses at
beginning of period $25,191,175 $24,256,034 $23,118,946
Reserves acquired through
acquisition - - -
Provision for loan losses 2,208,555 2,956,380 1,602,500
Loans charged-off during the period (3,553,825) (2,289,524) (1,103,582)
Recoveries on loans previously
charged-off 1,138,092 268,285 638,170
Net loans (charged-off) recovered
during period (2,415,733) (2,021,239) (465,412)
Reserve for loan losses at end of
period $24,983,997 $25,191,175 $24,256,034
Net charge-offs to average loans,
annualized 0.56% 0.48% 0.11%
Gross charge-offs to average loans,
annualized 0.82% 0.55% 0.27%
Recoveries as a percentage of gross
charge-offs 32.02% 11.72% 57.83%
Reserve for loan losses as a
percentage of loans, at end of
period 1.43% 1.48% 1.47%
NON-PERFORMING ASSETS
Loans accounted for on a non-
accrual basis $19,036,696 $12,254,820 $4,712,752
Restructured loans - - -
Total non-performing loans 19,036,696 12,254,820 4,712,752
Foreclosed assets 2,006,494 2,165,914 1,132,377
Total non-performing assets $21,043,190 $14,420,734 $5,845,129
Non-performing assets as a
percentage of loans plus
foreclosed assets, at end of
period 1.21% 0.85% 0.35%
Non-performing assets as a
percentage of total assets, at end
of period 0.90% 0.62% 0.26%
Reserve for loan losses as a
percentage of non-performing
assets, at end of period 118.73% 174.69% 414.98%
Loans 90 days past due and still
accruing $4,222,658 $5,657,986 $2,062,584
Loans 90 days past due and still
accruing as a percentage of
loans, at end of period 0.24% 0.33% 0.12%
MAIN STREET BANKS, INC. AND SUBSIDIARIES
LOAN QUALITY
(Unaudited)
Second First
Quarter Quarter
2004 2004
RESERVE FOR POSSIBLE LOAN LOSSES
Reserve for loan losses at beginning
of period $22,150,651 $21,151,987
Reserves acquired through acquisition - -
Provision for loan losses 1,310,000 1,561,000
Loans charged-off during the period (657,213) (650,138)
Recoveries on loans previously
charged-off 315,508 87,802
Net loans (charged-off) recovered
during period (341,705) (562,336)
Reserve for loan losses at end of
period $23,118,946 $22,150,651
Net charge-offs to average loans,
annualized 0.09% 0.15%
Gross charge-offs to average loans,
annualized 0.17% 0.18%
Recoveries as a percentage of gross
charge-offs 48.01% 13.51%
Reserve for loan losses as a
percentage of loans, at end of
period 1.45% 1.47%
NON-PERFORMING ASSETS
Loans accounted for on a non-accrual
basis $5,179,265 $4,822,135
Restructured loans - -
Total non-performing loans 5,179,265 4,822,135
Foreclosed assets 3,730,693 2,255,553
Total non-performing assets $8,909,958 $7,077,688
Non-performing assets as a percentage
of loans plus foreclosed assets, at
end of period 0.56% 0.47%
Non-performing assets as a percentage
of total assets, at end of period 0.41% 0.35%
Reserve for loan losses as a
percentage of non-performing assets,
at end of period 259.47% 312.96%
Loans 90 days past due and still
accruing $3,628,399 $5,934,220
Loans 90 days past due and still
accruing as a percentage of
loans, at end of period 0.23% 0.39%
MAIN STREET BANKS, INC. AND SUBSIDIARIES
LOAN QUALITY
(Unaudited)
Three months ended
March 31,
2005 2004
RESERVE FOR POSSIBLE LOAN LOSSES
Reserve for loan losses at beginning
of period $25,191,175 $21,151,987
Reserves acquired through acquisition - -
Provision for loan losses 2,208,555 1,561,000
Loans charged-off during the period (3,553,825) (650,138)
Recoveries on loans previously
charged-off 1,138,092 87,802
Net loans (charged-off) recovered
during period (2,415,733) (562,336)
Reserve for loan losses at end of
period $24,983,997 $22,150,651
Net charge-offs to average loans,
annualized 0.56% 0.15%
Gross charge-offs to average loans,
annualized 0.82% 0.18%
Recoveries as a percentage of gross
charge-offs 32.02% 13.51%
Reserve for loan losses as a
percentage of loans, at end of
period 1.43% 1.47%
NON-PERFORMING ASSETS
Loans accounted for on a non-accrual
basis $19,036,696 $4,822,135
Restructured loans - -
Total non-performing loans 19,036,696 4,822,135
Foreclosed assets 2,006,494 2,255,553
Total non-performing assets $21,043,190 $7,077,688
Non-performing assets as a percentage
of loans plus foreclosed assets, at
end of period 1.21% 0.47%
Non-performing assets as a percentage
of total assets, at end of period 0.90% 0.35%
Reserve for loan losses as a
percentage of non-performing assets,
at end of period 118.73% 312.96%
Loans 90 days past due and still
accruing $4,222,658 $5,934,220
Loans 90 days past due and still
accruing as a percentage of
loans, at end of period 0.24% 0.39%
MAIN STREET BANKS, INC. AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
(Unaudited)
First Fourth Third
Quarter Quarter Quarter
2005 2004 2004
RESULTS OF OPERATIONS
Net interest income $21,610,573 $21,430,713 $20,832,969
Net interest income (tax
equivalent) 21,785,622 21,612,019 21,021,094
Provision for loan losses 2,208,555 2,956,380 1,602,500
Non-interest income 7,926,280 7,541,744 7,821,682
Non-interest expense 15,503,167 15,410,405 15,494,210
Net income 8,182,991 7,698,582 8,263,915
AVERAGE BALANCE SHEET DATA
(in thousands)
Loans, net of unearned income 1,731,089 1,670,976 1,620,436
Investment securities 316,742 293,933 288,443
Earning assets 2,092,064 2,030,527 1,940,675
Total assets 2,335,055 2,271,783 2,176,797
Deposits 1,709,580 1,687,864 1,584,819
Shareholders' equity 280,723 234,796 218,058
PER COMMON SHARE
Earnings per share - Basic $0.38 $0.39 $0.43
Earnings per share - Diluted $0.38 $0.38 $0.41
Book value per share at end of
period $13.16 $13.10 $11.43
End of period shares outstanding 21,315,955 21,229,545 19,457,741
Weighted average shares outstanding
Basic 21,277,737 19,756,947 19,428,145
Diluted 21,818,118 20,372,205 20,015,560
STOCK PERFORMANCE
Market Price:
Closing $26.45 $34.93 $30.60
High $35.34 $34.93 $30.60
Low $26.35 $28.55 $26.46
Trading volume 4,241,000 2,893,800 1,755,400
Cash dividend per share 0.153 0.135 0.135
Dividend payout ratio 40.66% 35.72% 32.70%
Price to earnings 17.58 23.23 18.63
Price to book value 2.01 2.67 2.68
PERFORMANCE RATIOS
Return on average assets 1.40% 1.36% 1.52%
Return on average equity 11.66% 13.12% 15.16%
Average earning assets to average
total assets 89.59% 89.38% 89.15%
Average loans as percentage of
average deposits 101.26% 99.00% 102.25%
Net interest margin (tax equivalent) 4.18% 4.23% 4.31%
Average equity to average assets 12.02% 10.34% 10.02%
Non-interest income ratio 26.84% 26.03% 27.30%
Efficiency ratio 52.49% 53.19% 54.07%
ASSET QUALITY
Total non-performing assets $21,043,190 $14,420,734 $5,845,129
Non-performing assets as a
percentage of loans plus
foreclosed assets 1.21% 0.85% 0.35%
Net annualized (charge-offs)
recoveries as a percentage of
average loans 0.56% 0.48% 0.11%
Reserve for loan losses as a
percentage of loans, at end of
period 1.43% 1.48% 1.47%
OPERATING EARNINGS
Net income $8,182,991 $7,698,582 $8,263,915
Amortization of intangible assets,
net 92,700 88,266 88,266
Job reductions - - -
Contract buyout, net - - -
Systems write-offs, net - - -
Operating income $8,275,691 $7,786,848 $8,352,181
Operating earnings per share
Basic $0.39 $0.39 $0.43
Diluted $0.38 $0.38 $0.42
Average tangible assets
(in thousands) $2,232,760 $2,168,483 $2,073,327
Average tangible equity
(in thousands) 178,427 131,496 114,588
Operating return on average
tangible assets 1.48% 1.44% 1.61%
Operating return on average
tangible equity 18.55% 23.69% 29.16%
OPERATING BASIS
Non-interest expense $15,362,712 $15,276,669 $15,360,474
Net interest income 21,610,573 21,430,713 20,832,969
Non-interest income 7,926,280 7,541,744 7,821,682
Efficiency Ratio 52.01% 52.73% 53.61%
MAIN STREET BANKS, INC. AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
(Unaudited)
Second First
Quarter Quarter
2004 2004
RESULTS OF OPERATIONS
Net interest income $20,219,242 $19,926,398
Net interest income (tax equivalent) 20,419,505 20,141,555
Provision for loan losses 1,310,000 1,561,000
Non-interest income 7,418,708 7,839,898
Non-interest expense 16,134,081 15,579,035
Net income 7,391,018 7,596,745
AVERAGE BALANCE SHEET DATA
(in thousands)
Loans, net of unearned income 1,551,258 1,470,876
Investment securities 282,850 260,866
Earning assets 1,864,339 1,770,541
Total assets 2,096,734 1,986,972
Deposits 1,547,739 1,466,087
Shareholders' equity 215,051 205,272
PER COMMON SHARE
Earnings per share - Basic $0.38 $0.39
Earnings per share - Diluted $0.37 $0.38
Book value per share at end of period $10.94 $11.14
End of period shares outstanding 19,381,000 19,340,676
Weighted average shares outstanding
Basic 19,351,343 19,280,882
Diluted 19,974,058 19,910,810
STOCK PERFORMANCE
Market Price:
Closing $28.10 $27.34
High $28.82 $27.50
Low $25.62 $24.90
Trading volume 2,010,000 1,703,700
Cash dividend per share 0.135 0.135
Dividend payout ratio 36.48% 35.38%
Price to earnings 18.88 17.82
Price to book value 2.57 2.46
PERFORMANCE RATIOS
Return on average assets 1.41% 1.53%
Return on average equity 13.75% 14.80%
Average earning assets to average
total assets 88.92% 89.11%
Average loans as percentage of
average deposits 100.23% 100.33%
Net interest margin (tax equivalent) 4.41% 4.58%
Average equity to average assets 10.26% 10.33%
Non-interest income ratio 26.84% 28.24%
Efficiency ratio 58.38% 56.11%
ASSET QUALITY
Total non-performing assets $8,909,958 $7,077,688
Non-performing assets as a percentage
of loans plus foreclosed assets 0.56% 0.47%
Net annualized (charge-offs)
recoveries as a percentage of
average loans 0.09% 0.15%
Reserve for loan losses as a
percentage of loans, at end of
period 1.45% 1.47%
OPERATING EARNINGS
Net income $7,391,018 $7,596,745
Amortization of intangible assets,
net 87,666 101,264
Job reductions 231,845 -
Contract buyout, net 172,366 -
Systems write-offs, net 342,104 -
Operating income $8,224,998 $7,698,009
Operating earnings per share
Basic $0.43 $0.40
Diluted $0.41 $0.39
Average tangible assets
(in thousands) $1,993,288 $1,888,316
Average tangible equity
(in thousands) 111,605 106,616
Operating return on average tangible
assets 1.65% 1.63%
Operating return on average tangible
equity 29.48% 28.88%
OPERATING BASIS
Non-interest expense $16,001,254 $15,425,605
Net interest income 20,219,242 19,926,398
Non-interest income 7,418,708 7,839,898
Efficiency Ratio 57.90% 55.56%
MAIN STREET BANKS, INC. AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
(Unaudited)
Three months ended
March 31,
2005 2004
RESULTS OF OPERATIONS
Net interest income $21,610,573 $19,926,398
Net interest income (tax equivalent) 21,785,622 20,141,555
Provision for loan losses 2,208,555 1,561,000
Non-interest income 7,926,280 7,839,898
Non-interest expense 15,503,167 15,579,035
Net income 8,182,991 7,596,745
AVERAGE BALANCE SHEET DATA
(in thousands)
Loans, net of unearned income 1,731,089 1,470,876
Investment securities 316,742 260,866
Earning assets 2,092,064 1,770,541
Total assets 2,335,055 1,986,972
Deposits 1,709,580 1,466,087
Shareholders' equity 280,723 205,272
PER COMMON SHARE
Earnings per share - Basic $0.38 $0.39
Earnings per share - Diluted $0.38 $0.38
Book value per share at end of period $13.16 $11.14
End of period shares outstanding 21,315,955 19,340,676
Weighted average shares outstanding
Basic 21,277,737 19,280,882
Diluted 21,818,118 19,910,810
STOCK PERFORMANCE
Market Price:
Closing $26.45 $27.34
High $35.34 $27.50
Low $26.35 $24.90
Trading volume 4,241,000 1,703,700
Cash dividend per share 0.153 0.135
Dividend payout ratio 40.66% 35.38%
Price to earnings 17.58 17.82
Price to book value 2.01 2.46
PERFORMANCE RATIOS
Return on average assets 1.40% 1.53%
Return on average equity 11.66% 14.80%
Average earning assets to average
total assets 89.59% 89.11%
Average loans as percentage of
average deposits 101.26% 100.33%
Net interest margin (tax equivalent) 4.18% 4.58%
Average equity to average assets 12.02% 10.33%
Non-interest income ratio 26.84% 28.24%
Efficiency ratio 52.49% 56.11%
ASSET QUALITY
Total non-performing assets $21,043,190 $7,077,688
Non-performing assets as a percentage
of loans plus foreclosed assets 1.21% 0.47%
Net annualized (charge-offs)
recoveries as a percentage of
average loans 0.56% 0.15%
Reserve for loan losses as a
percentage of loans, at end of
period 1.43% 1.47%
OPERATING EARNINGS
Net income $8,182,991 $7,596,745
Amortization of intangible assets,
net 92,700 101,264
Job reductions - -
Contract buyout, net - -
Systems write-offs, net - -
Operating income $8,275,691 $7,698,009
Operating earnings per share
Basic $0.39 $0.40
Diluted $0.38 $0.39
Average tangible assets
(in thousands) $2,232,760 $1,888,316
Average tangible equity
(in thousands) 178,427 106,616
Operating return on average tangible
assets 1.48% 1.63%
Operating return on average tangible
equity 18.55% 28.88%
OPERATING BASIS
Non-interest expense $15,362,712 $15,425,605
Net interest income 21,610,573 19,926,398
Non-interest income 7,926,280 7,839,898
Efficiency Ratio 52.01% 55.56%
DATASOURCE: Main Street Banks, Inc.
CONTACT: Samuel B. Hay III, President and Chief Executive Officer of
Main Street Banks, +1-770-786-3441
Web site: http://www.mainstreetbank.com/