/FIRST AND FINAL ADD -- CLW026 -- Main Street Banks (Nasdaq: MSBK)
Earnings/ MAIN STREET BANKS, INC. AND SUBSIDIARIES AVERAGE BALANCE
SHEET (Unaudited) Fourth Third Second Quarter Quarter Quarter 2004
2004 2004 ASSETS Cash and due from banks $40,385,275 $39,565,158
$38,220,151 Interest-bearing deposits in banks 323,412 662,555
660,111 Federal funds sold and securities purchased under
agreements to resell 36,014,795 1,037,646 357,846 Investment
securities available for sale 282,198,873 276,497,775 270,851,196
Investment securities held to maturity 11,733,821 11,945,588
11,998,340 Other investments 21,866,256 24,140,813 21,352,832
Mortgage loans held for sale 7,413,513 5,954,007 7,860,559 Loans,
net of unearned income 1,670,976,218 1,620,436,393 1,551,258,388
Allowance for loan losses (24,559,019) (23,402,241) (22,505,292)
Loans, net 1,646,417,199 1,597,034,152 1,528,753,096 Premises and
equipment, net 52,672,981 50,125,904 46,440,339 Other real estate
1,868,635 1,914,645 2,584,703 Accrued interest receivable 9,091,675
9,058,791 7,874,920 Goodwill and other intangible assets
103,299,382 103,470,116 103,445,869 Bank owned life insurance
41,722,058 41,191,340 41,471,029 Other assets 16,774,679 14,198,902
14,863,167 Total assets $2,271,782,554 $2,176,797,392
$2,096,734,158 LIABILITIES Total deposits $1,687,864,307
$1,584,818,716 $1,547,738,831 Accrued interest payable 3,678,457
3,312,458 3,129,282 Federal Home Loan Bank advances 205,771,676
158,242,407 148,344,127 Federal funds purchased and securities sold
under repurchase agreements 80,364,169 153,386,148 126,594,813
Trust preferred securities - - - Subordinated debt 51,547,000
51,547,000 51,547,000 Other liabilities 7,761,366 7,432,893
4,329,275 Total liabilities 2,036,986,975 1,958,739,621
1,881,683,328 SHAREHOLDERS' EQUITY Common stock-no par value per
share 116,719,468 107,626,919 107,346,374 Retained earnings
126,192,533 120,402,848 114,838,884 Accumulated other comprehensive
income 673,167 (1,182,407) 1,655,161 Treasury stock (8,789,589)
(8,789,589) (8,789,589) Total shareholders' equity 234,795,579
218,057,771 215,050,830 Total liabilities and shareholders' equity
$2,271,782,554 $2,176,797,392 $2,096,734,158 MAIN STREET BANKS,
INC. AND SUBSIDIARIES AVERAGE BALANCE SHEET (Unaudited) First
Fourth Quarter Quarter 2004 2003 ASSETS Cash and due from banks
$37,174,008 $38,074,607 Interest-bearing deposits in banks 206,921
1,037,948 Federal funds sold and securities purchased under
agreements to resell 13,733,915 35,288,778 Investment securities
available for sale 249,633,094 248,724,785 Investment securities
held to maturity 11,233,274 3,382,680 Other investments 20,172,234
18,799,718 Mortgage loans held for sale 4,685,417 3,841,104 Loans,
net of unearned income 1,470,876,346 1,424,858,073 Allowance for
loan losses (21,409,245) (20,816,925) Loans, net 1,449,467,101
1,404,041,148 Premises and equipment, net 43,622,711 42,801,524
Other real estate 2,813,337 1,941,348 Accrued interest receivable
7,614,443 7,407,238 Goodwill and other intangible assets 98,655,805
95,040,910 Bank owned life insurance 37,904,493 35,462,722 Other
assets 10,054,978 10,291,118 Total assets $1,986,971,731
$1,946,135,628 LIABILITIES Total deposits $1,466,086,785
$1,452,073,218 Accrued interest payable 3,023,843 3,133,317 Federal
Home Loan Bank advances 147,072,474 191,157,159 Federal funds
purchased and securities sold under repurchase agreements
110,799,890 47,439,961 Trust preferred securities - 50,000,000
Subordinated debt 50,000,000 - Other liabilities 4,717,074
5,956,643 Total liabilities 1,781,700,066 1,749,760,298
SHAREHOLDERS' EQUITY Common stock-no par value per share
102,361,167 99,587,649 Retained earnings 107,198,497 101,961,196
Accumulated other comprehensive income 4,501,139 3,615,380 Treasury
stock (8,789,138) (8,788,895) Total shareholders' equity
205,271,665 196,375,330 Total liabilities and shareholders' equity
$1,986,971,731 $1,946,135,628 MAIN STREET BANKS, INC. AND
SUBSIDIARIES AVERAGE BALANCE SHEET (Unaudited) December 31,
December 31, 2004 2003 ASSETS Cash and due from banks $38,506,380
$34,163,079 Interest-bearing deposits in banks 207,848 1,199,130
Federal funds sold and securities purchased under agreements to
resell 13,107,265 15,259,950 Investment securities available for
sale 269,842,697 242,678,414 Investment securities held to maturity
11,730,115 1,361,496 Other investments 21,169,539 12,176,302
Mortgage loans held for sale 6,479,814 5,364,600 Loans, net of
unearned income 1,578,621,779 1,259,640,182 Allowance for loan
losses (22,974,340) (18,396,615) Loans, net 1,555,647,439
1,241,243,567 Premises and equipment, net 48,235,152 38,264,707
Other real estate 2,296,443 1,425,209 Accrued interest receivable
8,413,813 6,926,309 Goodwill and other intangible assets
102,236,584 62,221,009 Bank owned life insurance 40,582,967
33,471,078 Other assets 15,285,106 8,457,472 Total assets
$2,133,741,162 $1,704,212,322 LIABILITIES Total deposits
$1,571,722,772 $1,313,887,932 Accrued interest payable 3,296,143
3,222,737 Federal Home Loan Bank advances 164,973,073 130,833,369
Federal funds purchased and securities sold under repurchase
agreements 117,731,224 44,875,584 Trust preferred securities -
31,783,430 Subordinated debt 51,166,590 - Other liabilities
6,171,166 11,113,301 Total liabilities 1,915,060,968 1,535,716,353
SHAREHOLDERS' EQUITY Common stock-no par value per share
108,531,170 77,903,662 Retained earnings 117,570,598 94,574,145
Accumulated other comprehensive income 1,367,903 4,466,572 Treasury
stock (8,789,477) (8,448,410) Total shareholders' equity
218,680,194 168,495,969 Total liabilities and shareholders' equity
$2,133,741,162 $1,704,212,322 MAIN STREET BANKS, INC. AND
SUBSIDIARIES CONSOLIDATED BALANCE SHEET (Unaudited) Fourth Third
Second Quarter Quarter Quarter 2004 2004 2004 ASSETS Cash and due
from banks $35,090,563 $55,719,486 $42,090,671 Interest-bearing
deposits in banks 317,953 1,058,235 1,078,334 Federal funds sold
and securities purchased under agreements to resell 35,812,949
24,410,000 713,000 Investment securities available for sale
315,520,771 282,814,235 272,596,604 Investment securities held to
maturity 11,715,948 11,835,353 11,998,436 Other investments
23,781,977 23,040,424 23,876,638 Mortgage loans held for sale
4,562,962 6,931,843 6,221,181 Loans, net of unearned income
1,699,035,573 1,653,615,534 1,594,290,721 Allowance for loan losses
(25,191,175) (24,256,034) (23,118,946) Loans, net 1,673,844,398
1,629,359,500 1,571,171,775 Premises and equipment, net 53,469,516
52,504,434 48,391,110 Other real estate 2,141,040 1,082,267
1,914,985 Accrued interest receivable 9,762,826 9,243,097 9,060,367
Goodwill and other intangible assets 102,169,572 103,392,163
103,514,753 Bank owned life insurance 42,056,525 41,528,162
41,006,405 Other assets 16,286,895 15,473,682 13,530,493 Total
assets $2,326,533,895 $2,258,392,881 $2,147,164,752 LIABILITIES
Total deposits $1,710,209,913 $1,630,286,409 $1,566,290,310 Accrued
interest payable 3,955,183 3,488,406 3,284,308 Federal Home Loan
Bank advances 201,070,198 226,203,972 166,337,747 Federal funds
purchased and securities sold under repurchase agreements
73,367,456 115,191,909 142,324,882 Trust preferred securities - - -
Subordinated debt 51,547,000 51,547,000 51,547,000 Other
liabilities 8,300,069 9,353,208 5,413,930 Total liabilities
2,048,449,819 2,036,070,904 1,935,198,177 SHAREHOLDERS' EQUITY
Common stock-no par value per share 159,520,536 108,197,312
107,446,736 Retained earnings 127,566,247 121,717,798 116,073,951
Accumulated other comprehensive income (213,118) 1,196,456
(2,764,523) Treasury stock (8,789,589) (8,789,589) (8,789,589)
Total shareholders' equity 278,084,076 222,321,977 211,966,575
Total liabilities and shareholders' equity $2,326,533,895
$2,258,392,881 $2,147,164,752 MAIN STREET BANKS, INC. AND
SUBSIDIARIES CONSOLIDATED BALANCE SHEET (Unaudited) First Fourth
Quarter Quarter 2004 2003 ASSETS Cash and due from banks
$31,901,310 $39,839,060 Interest-bearing deposits in banks 588,694
1,021,288 Federal funds sold and securities purchased under
agreements to resell 5,644,000 31,819,619 Investment securities
available for sale 263,304,831 247,391,640 Investment securities
held to maturity 11,998,297 10,788,146 Other investments 19,205,358
19,651,370 Mortgage loans held for sale 7,208,105 5,670,625 Loans,
net of unearned income 1,511,436,809 1,443,325,787 Allowance for
loan losses (22,150,651) (21,151,987) Loans, net 1,489,286,158
1,422,173,800 Premises and equipment, net 45,167,765 42,760,918
Other real estate 2,255,553 1,844,869 Accrued interest receivable
8,293,918 8,181,579 Goodwill and other intangible assets
103,381,314 96,237,492 Bank owned life insurance 41,595,547
35,773,237 Other assets 15,801,590 8,611,815 Total assets
$2,045,632,440 $1,971,765,458 LIABILITIES Total deposits
$1,530,979,973 $1,458,403,096 Accrued interest payable 3,210,642
3,020,265 Federal Home Loan Bank advances 156,471,522 210,605,296
Federal funds purchased and securities sold under repurchase
agreements 83,930,239 43,859,277 Trust preferred securities -
50,000,000 Subordinated debt 51,547,000 - Other liabilities
4,116,702 5,334,408 Total liabilities 1,830,256,078 1,771,222,342
SHAREHOLDERS' EQUITY Common stock-no par value per share
109,117,216 100,875,984 Retained earnings 109,299,987 104,539,042
Accumulated other comprehensive income 5,748,748 3,917,179 Treasury
stock (8,789,589) (8,789,089) Total shareholders' equity
215,376,362 200,543,116 Total liabilities and shareholders' equity
$2,045,632,440 $1,971,765,458 MAIN STREET BANKS, INC. AND
SUBSIDIARIES CONSOLIDATED BALANCE SHEET (Unaudited) December 31,
December 31, 2004 2003 ASSETS Cash and due from banks 35,090,563
$39,839,060 Interest-bearing deposits in banks 317,953 1,021,288
Federal funds sold and securities purchased under agreements to
resell 35,812,949 31,819,619 Investment securities available for
sale 315,520,771 247,391,640 Investment securities held to maturity
11,715,948 10,788,146 Other investments 23,781,977 19,651,370
Mortgage loans held for sale 4,562,962 5,670,625 Loans, net of
unearned income 1,699,035,573 1,443,325,787 Allowance for loan
losses (25,191,175) (21,151,987) Loans, net 1,673,844,398
1,422,173,800 Premises and equipment, net 53,469,516 42,760,918
Other real estate 2,141,040 1,844,869 Accrued interest receivable
9,762,826 8,181,579 Goodwill and other intangible assets
102,169,572 96,237,492 Bank owned life insurance 42,056,525
35,773,237 Other assets 16,286,895 8,611,815 Total assets
$2,326,533,895 $1,971,765,458 LIABILITIES Total deposits
1,710,209,913 $1,458,403,096 Accrued interest payable 3,955,183
3,020,265 Federal Home Loan Bank advances 201,070,198 210,605,296
Federal funds purchased and securities sold under repurchase
agreements 73,367,456 43,859,277 Trust preferred securities -
50,000,000 Subordinated debt 51,547,000 - Other liabilities
8,300,069 5,334,408 Total liabilities 2,048,449,819 1,771,222,342
SHAREHOLDERS' EQUITY Common stock-no par value per share
159,520,536 100,875,984 Retained earnings 127,566,247 104,539,042
Accumulated other comprehensive income (213,118) 3,917,179 Treasury
stock (8,789,589) (8,789,089) Total shareholders' equity
278,084,076 200,543,116 Total liabilities and shareholders' equity
$2,326,533,895 $1,971,765,458 MAIN STREET BANKS, INC. AND
SUBSIDIARIES LOAN AND DEPOSIT STRATIFICATION (Unaudited) Fourth
Third Second Quarter Quarter Quarter 2004 2004 2004 LOAN PORTFOLIO
Real estate: Residential Mortgage $288,703,328 $284,647,539
$282,754,653 Construction 401,815,256 379,468,496 348,685,270
Commercial real estate 846,945,431 826,434,480 795,114,435
Commercial and Industrial 127,476,473 129,790,889 132,379,349
Consumer 36,966,630 35,901,922 37,602,059 Unearned income
(2,871,545) (2,627,791) (2,245,045) Total loans $1,699,035,573
$1,653,615,534 $1,594,290,721 Loan growth 2.7% 3.7% 5.5% Loan
growth, annualized 10.9% 14.8% 22.0% DEPOSITS Non-interest bearing
demand $224,958,448 $236,808,861 $232,319,420 Interest bearing
demand 107,167,500 111,972,487 109,183,366 Money Market 407,981,856
346,698,652 347,395,886 Savings 39,401,660 40,705,887 40,307,875
Total transaction accounts 779,509,464 736,185,886 729,206,548
Public funds - transaction 150,534,921 132,267,045 90,423,130 Total
low cost core deposits 930,044,385 868,452,931 819,629,677 Time
deposits - public funds 13,696,451 14,012,373 15,991,062 Time
deposits 766,469,077 747,821,105 730,669,570 Total deposits
$1,710,209,913 $1,630,286,409 $1,566,290,310 Deposit growth 4.9%
4.1% 2.3% Deposit growth, annualized 19.5% 16.3% 9.3% Percentage
low cost core to total deposits 54.4% 53.3% 52.3% Percentage growth
of low cost core deposits 7.1% 6.0% 3.1% Annualized growth of low
cost core deposits 28.2% 23.7% 12.6% *The acquisition of First
Colony Bank was completed in the second quarter of 2003 MAIN STREET
BANKS, INC. AND SUBSIDIARIES LOAN AND DEPOSIT STRATIFICATION
(Unaudited) First Fourth Quarter Quarter 2004 2003 LOAN PORTFOLIO
Real estate: Residential Mortgage $280,453,804 $269,357,951
Construction 314,171,269 304,045,641 Commercial real estate
762,815,561 711,208,711 Commercial and Industrial 116,735,287
118,242,893 Consumer 39,063,480 41,649,590 Unearned income
(1,802,592) (1,178,999) Total loans $1,511,436,809 $1,443,325,787
Loan growth 4.7% 2.2%* Loan growth, annualized 19.0% 8.9%* DEPOSITS
Non-interest bearing demand $227,159,637 $222,595,661 Interest
bearing demand 112,043,973 116,749,330 Money Market 313,554,963
266,913,040 Savings 40,074,116 40,000,806 Total transaction
accounts 692,832,689 646,258,837 Public funds - transaction
101,844,740 115,258,296 Total low cost core deposits 794,677,429
761,517,133 Time deposits - public funds 17,565,349 10,741,662 Time
deposits 718,737,195 686,444,301 Total deposits $1,530,979,973
$1,458,703,096 Deposit growth 5.0% 1.5% Deposit growth, annualized
19.9% 5.9% Percentage low cost core to total deposits 51.9% 52.2%
Percentage growth of low cost core deposits 4.4% 3.4%* Annualized
growth of low cost core deposits 17.5% 13.4%* *The acquisition of
First Colony Bank was completed in the second quarter of 2003 MAIN
STREET BANKS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF
INCOME (Unaudited) Fourth Third Second First Quarter Quarter
Quarter Quarter 2004 2004 2004 2004 NET INTEREST INCOME Loan,
including fees $28,519,255 $26,809,369 $25,473,584 $24,781,842
Interest on investment securities: Taxable 2,518,397 2,428,436
2,362,075 2,247,038 Non-taxable 351,946 365,183 388,746 417,657
Federal funds sold and repurchase agreements 147,716 2,111 3,751
30,399 Interest bearing deposits in banks 7,495 6,545 3,724 5,223
Interest on other investments 122,662 240,218 238,518 205,662 Total
interest income 31,667,471 29,851,862 28,470,398 27,687,821
INTEREST EXPENSE Interest-bearing demand and money market 2,505,441
1,885,099 1,828,848 1,322,218 Savings 64,185 61,766 73,775 88,707
Time deposits 5,117,216 4,756,612 4,470,715 4,463,088 Other time
deposits 65,963 64,442 64,462 55,813 Federal funds purchased
357,707 561,511 333,018 34,701 Federal Home Loan Bank advances
1,227,700 876,478 663,793 866,258 Interest expense on subordinated
debentures 724,326 637,085 574,946 574,946 Other 174,220 175,900
241,599 355,692 Total interest expense 10,236,758 9,018,893
8,251,156 7,761,423 Net interest income 21,430,713 20,832,969
20,219,242 19,926,398 Provision for loan losses 2,956,380 1,602,500
1,310,000 1,561,000 Net interest income after provision for loan
losses 18,474,333 19,230,469 18,909,242 18,365,398 NON-INTEREST
INCOME Service charges on deposit accounts 2,047,804 2,165,224
2,023,191 1,880,521 Other customer service fees 375,445 276,909
352,392 356,795 Mortgage banking revenue 721,363 809,807 859,631
883,128 Investment brokerage revenue 194,241 133,479 185,330
315,080 Insurance agency revenue 2,393,185 2,514,479 2,370,375
2,771,701 Income from SBA lending 946,164 1,270,397 367,859 485,918
Other income 863,542 651,387 1,259,930 1,146,755 Total non-interest
income 7,541,744 7,821,682 7,418,708 7,839,898 NON-INTEREST EXPENSE
Salaries and other compensation 8,208,721 7,999,790 7,688,444
8,041,199 Employee benefits 1,195,115 1,170,201 1,519,972 1,640,263
Net occupancy and equipment expense 2,079,450 2,090,931 2,208,378
1,859,695 Data processing fees 554,645 325,617 223,450 557,301
Professional services 506,351 715,789 583,177 438,395
Communications and supplies 893,426 1,027,203 1,027,631 1,050,888
Amortization of intangible assets 122,591 122,591 121,758 140,644
Other expense 1,850,106 2,042,088 2,761,271 1,850,650 Total
non-interest expense 15,410,405 15,494,210 16,134,081 15,579,035
Income before income taxes 10,605,672 11,557,941 10,193,869
10,626,261 Income tax expense 2,907,090 3,294,026 2,802,851
3,029,516 Net income $7,698,582 $8,263,915 $7,391,018 $7,596,745
EARNINGS PER SHARE Basic $0.39 $0.43 $0.38 $0.39 Diluted $0.38
$0.41 $0.37 $0.38 WEIGHTED AVERAGE SHARES OUTSTANDING Basic
19,756,947 19,428,145 19,351,343 19,280,882 Diluted 20,372,205
20,015,560 19,974,058 19,910,810 CASH DIVIDENDS PER SHARE $0.135
$0.135 $0.135 $0.135 MAIN STREET BANKS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME (Unaudited) Fourth Twelve months
ended Quarter December 31, 2003 2004 2003 NET INTEREST INCOME Loan,
including fees $24,045,242 $105,584,050 $88,172,417 Interest on
investment securities: Taxable 2,136,462 9,555,946 8,308,729
Non-taxable 376,992 1,523,532 1,671,248 Federal funds sold and
repurchase agreements 75,418 183,977 145,920 Interest bearing
deposits in banks 9,114 22,987 28,680 Interest on other investments
204,453 807,060 507,372 Total interest income 26,847,681
117,677,552 98,834,366 INTEREST EXPENSE Interest-bearing demand and
money market 1,288,087 7,541,606 5,735,210 Savings 89,583 288,433
348,502 Time deposits 4,261,858 18,807,631 15,691,659 Other time
deposits 85,577 250,680 380,389 Federal funds purchased 36,153
1,286,937 76,190 Federal Home Loan Bank advances 795,729 3,634,229
2,269,584 Interest expense on subordinated debentures 580,102
2,511,303 1,452,606 Other 370,193 947,411 1,510,515 Total interest
expense 7,507,282 35,268,230 27,464,655 Net interest income
19,340,399 82,409,322 71,369,711 Provision for loan losses
1,241,000 7,429,880 5,235,000 Net interest income after provision
for loan losses 18,099,399 74,979,442 66,134,711 NON-INTEREST
INCOME Service charges on deposit accounts 2,069,881 8,116,740
7,760,183 Other customer service fees 396,098 1,361,541 1,544,385
Mortgage banking revenue 711,660 3,273,929 3,341,846 Investment
brokerage revenue 30,758 828,130 263,477 Insurance agency revenue
1,252,337 10,049,740 4,856,983 Income from SBA lending 434,799
3,070,338 1,724,914 Other income 2,000,907 3,921,614 4,852,003
Total non-interest income 6,896,440 30,622,032 24,343,791
NON-INTEREST EXPENSE Salaries and other compensation 6,956,283
31,938,154 25,573,961 Employee benefits 1,213,020 5,525,551
4,749,509 Net occupancy and equipment expense 2,003,525 8,238,454
6,660,869 Data processing fees 481,895 1,661,013 1,683,825
Professional services 363,319 2,243,712 2,149,893 Communications
and supplies 1,168,727 3,999,148 3,736,305 Amortization of
intangible assets 106,800 507,584 364,499 Other expense 2,342,800
8,504,115 8,023,684 Total non-interest expense 14,636,369
62,617,731 52,942,545 Income before income taxes 10,359,470
42,983,743 37,535,957 Income tax expense 2,912,764 12,033,483
10,836,627 Net income $7,446,706 $30,950,260 $26,699,330 EARNINGS
PER SHARE Basic $0.39 $1.59 $1.49 Diluted $0.38 $1.54 $1.44
WEIGHTED AVERAGE SHARES OUTSTANDING Basic 18,951,688 19,455,084
17,875,246 Diluted 19,645,157 20,076,687 18,556,383 CASH DIVIDENDS
PER SHARE $0.120 $0.540 $0.480 MAIN STREET BANKS, INC. AND
SUBSIDIARIES SUMMARY OF INTEREST RATES (TAX-EQUIVALENT*)
(Unaudited) Fourth Third Second First Quarter Quarter Quarter
Quarter 2004 2004 2004 2004 EARNING ASSETS Total interest earning
assets (in thousands) $2,030,527 $1,940,675 $1,864,339 $1,770,541
Loans 6.77% 6.56% 6.58% 6.68% Investment securities 4.13% 4.11%
4.20% 4.49% Federal funds sold 1.63% 1.18% 1.12% 1.01% Loans held
for sale 4.65% 4.93% 4.57% 5.25% FHLB stock & other 2.33% 3.96%
4.43% 4.03% Total interest earning assets 6.20% 6.12% 6.14% 6.29%
INTEREST-BEARING LIABILITIES Total interest-bearing liabilities (in
thousands) $2,025,547 $1,947,994 $1,874,225 $1,773,959 Demand
deposits 1.26% 0.92% 0.92% 0.72% Demand deposits - public funds
0.43% 0.61% 1.05% 1.07% Time deposits 2.72% 2.59% 2.49% 2.49%
Retail repurchases 1.62% 1.62% 1.69% 1.69% Federal funds purchased
2.28% 1.68% 1.37% 1.24% Federal Home Loan bank advances 2.37% 2.20%
1.80% 1.77% Securities sold under agreement to repurchase 4.53%
4.53% 4.57% 4.09% Subordinated debentures 5.59% 4.92% 4.49% 4.55%
Net Cost of Funds 2.01% 1.84% 1.77% 1.76% NET INTEREST SPREAD
Interest earning assets less interest-bearing liabilities (in
thousands) $4,980 $(7,319) $(9,885) $(3,418) Yield on earning
assets less cost of interest- bearing liabilities 4.19% 4.28% 4.37%
4.53% NET INTEREST MARGIN Net interest income (tax equivalent) as a
percentage of average earning assets 4.23% 4.31% 4.41% 4.58% * To
make pre-tax income and resultant yields on tax-exempt investments
comparable to those on taxable investments, a tax-equivalent
adjustment has been computed using a federal income tax rate of
34%. MAIN STREET BANKS, INC. AND SUBSIDIARIES SUMMARY OF INTEREST
RATES (TAX-EQUIVALENT*) (Unaudited) Fourth Twelve months ended
Quarter December 31, 2003 2004 2003 EARNING ASSETS Total interest
earning assets (in thousands) $1,735,933 $1,862,913 $1,537,680
Loans 6.61% 6.80% 6.90% Investment securities 4.36% 4.21% 4.54%
Federal funds sold 0.91% 1.40% 1.05% Loans held for sale 5.50%
4.81% 5.88% FHLB stock & other 4.36% 3.88% 4.01% Total interest
earning assets 6.21% 6.32% 6.53% INTEREST-BEARING LIABILITIES Total
interest-bearing liabilities (in thousands) $1,739,771 $1,865,292
$1,522,004 Demand deposits 0.68% 0.99% 0.90% Demand deposits -
public funds 0.95% 0.70% 0.90% Time deposits 2.47% 2.67% 2.51%
Retail repurchases 1.71% 1.65% 1.82% Federal funds purchased 1.25%
1.45% 1.43% Federal Home Loan bank advances 1.78% 2.20% 1.77%
Securities sold under agreement to repurchase 4.09% 4.39% 3.95%
Subordinated debentures 4.54% 4.91% 4.51% Net Cost of Funds 1.71%
2.53% 1.80% NET INTEREST SPREAD Interest earning assets less
interest- bearing liabilities (in thousands) $(3,838) $(2,379)
$15,676 Yield on earning assets less cost of interest-bearing
liabilities 4.50% 3.79% 4.72% NET INTEREST MARGIN Net interest
income (tax equivalent) as a percentage of average earning assets
4.48% 4.47% 4.71% * To make pre-tax income and resultant yields on
tax-exempt investments comparable to those on taxable investments,
a tax-equivalent adjustment has been computed using a federal
income tax rate of 34%. MAIN STREET BANKS, INC. AND SUBSIDIARIES
LOAN QUALITY (Unaudited) Fourth Third Second First Quarter Quarter
Quarter Quarter 2004 2004 2004 2004 RESERVE FOR POSSIBLE LOAN
LOSSES Reserve for loan losses at beginning of period $24,256,034
$23,118,946 $22,150,651 $21,151,987 Reserves acquired through
acquisition - - - - Provision for loan losses 2,956,380 1,602,500
1,310,000 1,561,000 Loans charged-off during the period (2,289,524)
(1,103,582) (657,213) (650,138) Recoveries on loans previously
charged- off 268,285 638,170 315,508 87,802 Net loans (charged-off)
recovered during period (2,021,239) (465,412) (341,705) (562,336)
Reserve for loan losses at end of period $25,191,175 $24,256,034
$23,118,946 $22,150,651 Net charge-offs to average loans,
annualized 0.48% 0.11% 0.09% 0.15% Gross charge-offs to average
loans, annualized 0.55% 0.27% 0.17% 0.18% Recoveries as a
percentage of gross charge-offs 11.72% 57.83% 48.01% 13.51% Reserve
for loan losses as a percentage of loans, at end of period 1.48%
1.47% 1.45% 1.47% NON-PERFORMING ASSETS Loans accounted for on a
non-accrual basis $12,254,820 $4,712,752 $5,179,265 $4,822,135
Restructured loans - - - - Total non-performing loans 12,254,820
4,712,752 5,179,265 4,822,135 Foreclosed assets 2,165,914 1,132,377
3,730,693 2,255,553 Total non-performing assets $14,420,734
$5,845,129 $8,909,958 $7,077,688 Non-performing assets as a
percentage of loans plus foreclosed assets, at end of period 0.85%
0.35% 0.56% 0.47% Non-performing assets as a percentage of total
assets, at end of period 0.62% 0.26% 0.41% 0.35% Reserve for loan
losses as a percentage of non-performing assets, at end of period
174.69% 414.98% 259.47% 312.96% Loans 90 days past due and still
accruing $5,657,986 $2,062,584 $3,628,399 $5,934,220 Loans 90 days
past due and still accruing as a percentage of loans, at end of
period 0.33% 0.12% 0.23% 0.39% MAIN STREET BANKS, INC. AND
SUBSIDIARIES LOAN QUALITY (Unaudited) Fourth Twelve months ended
Quarter December 31, 2003 2004 2003 RESERVE FOR POSSIBLE LOAN
LOSSES Reserve for loan losses at beginning of period $20,765,377
$21,151,987 $14,588,582 Reserves acquired through acquisition - -
4,252,018 Provision for loan losses 1,241,000 7,429,880 5,235,000
Loans charged-off during the period (958,275) (4,700,457)
(3,336,038) Recoveries on loans previously charged-off 103,885
1,309,765 412,425 Net loans (charged-off) recovered during period
(854,390) (3,390,692) (2,923,613) Reserve for loan losses at end of
period $21,151,987 $25,191,175 $21,151,987 Net charge-offs to
average loans, annualized 0.24% 0.21% 0.23% Gross charge-offs to
average loans, annualized 0.27% 0.30% 0.26% Recoveries as a
percentage of gross charge-offs 10.84% 27.86% 12.85% Reserve for
loan losses as a percentage of loans, at end of period 1.47% 1.48%
1.47% NON-PERFORMING ASSETS Loans accounted for on a non-accrual
basis $11,548,489 $12,254,820 $11,548,489 Restructured loans - - -
Total non-performing loans 11,548,489 12,254,820 11,548,489
Foreclosed assets 1,844,869 2,165,914 1,844,869 Total
non-performing assets $13,393,358 $14,420,734 $13,393,358
Non-performing assets as a percentage of loans plus foreclosed
assets, at end of period 0.93% 0.85% 0.93% Non-performing assets as
a percentage of total assets, at end of period 0.68% 0.62% 0.68%
Reserve for loan losses as a percentage of non-performing assets,
at end of period 157.93% 174.69% 157.93% Loans 90 days past due and
still accruing $1,921,837 $5,657,986 $1,921,837 Loans 90 days past
due and still accruing as a percentage of loans, at end of period
0.13% 0.33% 0.13% MAIN STREET BANKS, INC. AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS (Unaudited) Fourth Third Second First Quarter
Quarter Quarter Quarter 2004 2004 2004 2004 RESULTS OF OPERATIONS
Net interest income $21,430,713 $20,832,969 $20,219,242 $19,926,398
Net interest income (tax equivalent) 21,612,019 21,021,094
20,419,505 20,141,555 Provision for loan losses 2,956,380 1,602,500
1,310,000 1,561,000 Non-interest income 7,541,744 7,821,682
7,418,708 7,839,898 Non-interest expense 15,410,405 15,494,210
16,134,081 15,579,035 Net income 7,698,582 8,263,915 7,391,018
7,596,745 AVERAGE BALANCE SHEET DATA (in thousands) Loans, net of
unearned income 1,670,976 1,620,436 1,551,258 1,470,876 Investment
securities 293,933 288,443 282,850 260,866 Earning assets 2,030,527
1,940,675 1,864,339 1,770,541 Total assets 2,271,783 2,176,797
2,096,734 1,986,972 Deposits 1,687,864 1,584,819 1,547,739
1,466,087 Shareholders' equity 234,796 218,058 215,051 205,272 PER
COMMON SHARE Earnings per share - Basic $0.39 $0.43 $0.38 $0.39
Earnings per share - Diluted $0.38 $0.41 $0.37 $0.38 Book value per
share as end of period $13.10 $11.43 $10.94 $11.14 End of period
shares outstanding 21,229,545 19,457,741 19,381,000 19,340,676
Weighted average shares outstanding Basic 19,756,947 19,428,145
19,351,343 19,280,882 Diluted 20,372,205 20,015,560 19,974,058
19,910,810 STOCK PERFORMANCE Market Price: Closing $34.93 $30.60
$28.10 $27.34 High $34.93 $30.60 $28.82 $27.50 Low $28.55 $26.46
$25.62 $24.90 Trading volume 2,893,800 1,755,400 2,010,000
1,703,700 Cash dividend per share 0.135 0.135 0.135 0.135 Dividend
payout ratio 35.72% 32.70% 36.48% 35.38% Price to earnings 23.23
18.63 18.88 17.82 Price to book value 2.67 2.68 2.57 2.46
PERFORMANCE RATIOS Return on average assets 1.36% 1.52% 1.41% 1.53%
Return on average equity 13.12% 15.16% 13.75% 14.80% Average
earning assets to average total assets 89.38% 89.15% 88.92% 89.11%
Average loans as percentage of average deposits 99.00% 102.25%
100.23% 100.33% Net interest margin (tax equivalent) 4.23% 4.31%
4.41% 4.58% Average equity to average assets 10.34% 10.02% 10.26%
10.33% Non-interest income ratio 26.03% 27.30% 26.84% 28.24%
Efficiency ratio 53.19% 54.07% 58.38% 56.11% ASSET QUALITY Total
non-performing assets $14,420,734 $5,845,129 $8,909,958 $7,077,688
Non-performing assets as a percentage of loans plus foreclosed
assets 0.85% 0.35% 0.56% 0.47% Net annualized (charge-offs)
recoveries as a percentage of average loans 0.48% 0.11% 0.09% 0.15%
Reserve for loan losses as a percentage of loans, at end of period
1.48% 1.47% 1.45% 1.47% MAIN STREET BANKS, INC. AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS (Unaudited) Fourth Third Second First Quarter
Quarter Quarter Quarter 2004 2004 2004 2004 OPERATING EARNINGS Net
income $7,698,582 $8,263,915 $7,391,018 $7,596,745 Amortization of
intangible assets, net 88,266 88,266 87,666 101,264 Job reductions
- - 231,845 - Contract buyout, net - - 172,366 - Systems
write-offs, net - - 342,104 - Operating income $7,786,848
$8,352,181 $8,224,998 $7,698,009 Operating earnings per share Basic
$0.39 $0.43 $0.43 $0.40 Diluted $0.38 $0.42 $0.41 $0.39 Average
tangible assets (in thousands) $2,168,483 $2,073,327 $1,993,288
$1,888,316 Average tangible equity (in thousands) 131,496 114,588
111,605 106,616 Operating return on average tangible assets 1.44%
1.61% 1.65% 1.63% Operating return on average tangible equity
23.69% 29.16% 29.48% 28.88% OPERATING BASIS Non-interest expense
$15,276,669 $15,360,474 $16,001,254 $15,425,605 Net interest income
21,430,713 20,832,969 20,219,242 19,926,398 Non-interest income
7,541,744 7,821,682 7,418,708 7,839,898 Efficiency Ratio 52.73%
53.61% 57.90% 55.56% MAIN STREET BANKS, INC. AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS (Unaudited) Fourth Twelve months ended Quarter
December 31, 2003 2004 2003 RESULTS OF OPERATIONS Net interest
income $19,340,399 $82,409,322 $71,369,711 Net interest income (tax
equivalent) 19,591,290 83,194,172 72,465,527 Provision for loan
losses 1,241,000 7,429,880 5,235,000 Non-interest income 6,896,440
30,622,032 24,343,791 Non-interest expense 14,636,369 62,617,731
52,942,545 Net income 7,446,706 30,950,260 26,699,330 AVERAGE
BALANCE SHEET DATA (in thousands) Loans, net of unearned income
1,424,858 1,578,622 1,259,640 Investment securities 252,107 281,573
244,040 Earning assets 1,735,933 1,901,159 1,537,680 Total assets
1,946,136 2,133,741 1,704,212 Deposits 1,452,073 1,571,723
1,313,888 Shareholders' equity 196,375 218,680 168,496 PER COMMON
SHARE Earnings per share - Basic $0.39 $1.59 $1.49 Earnings per
share - Diluted $0.38 $1.54 $1.44 Book value per share as end of
period $10.57 $13.10 $10.50 End of period shares outstanding
18,981,340 21,229,545 18,981,340 Weighted average shares
outstanding Basic 18,951,688 19,455,084 17,875,246 Diluted
19,645,157 20,076,687 18,556,383 STOCK PERFORMANCE Market Price:
Closing $26.52 $34.93 $26.52 High $27.92 $34.93 $27.92 Low $25.00
$24.90 $18.45 Trading volume 1,630,300 8,362,900 5,159,500 Cash
dividend per share 0.120 0.540 0.480 Dividend payout ratio 31.66%
35.03% 33.36% Price to earnings 17.63 16.96 18.43 Price to book
value 2.51 2.67 2.53 PERFORMANCE RATIOS Return on average assets
1.53% 1.45% 1.57% Return on average equity 15.17% 14.15% 15.85%
Average earning assets to average total assets 89.20% 89.10% 90.23%
Average loans as percentage of average deposits 98.13% 100.44%
95.87% Net interest margin (tax equivalent) 4.48% 4.47% 4.73%
Average equity to average assets 10.09% 10.25% 9.89% Non-interest
income ratio 26.29% 27.09% 25.43% Efficiency ratio 55.79% 55.40%
55.31% ASSET QUALITY Total non-performing assets $13,393,358
$14,420,734 $13,393,358 Non-performing assets as a percentage of
loans plus foreclosed assets 0.93% 0.85% 0.93% Net annualized
(charge-offs) recoveries as a percentage of average loans 0.24%
0.21% 0.23% Reserve for loan losses as a percentage of loans, at
end of period 1.47% 1.48% 1.47% MAIN STREET BANKS, INC. AND
SUBSIDIARIES FINANCIAL HIGHLIGHTS (Unaudited) Fourth Twelve months
ended Quarter December 31, 2003 2004 2003 OPERATING EARNINGS Net
income $7,446,706 $30,950,260 $26,699,330 Amortization of
intangible assets, net 76,896 365,460 240,569 Job reductions -
231,845 - Contract buyout, net - 172,366 - Systems write-offs, net
- 342,104 - Operating income $7,523,602 $32,062,035 $26,939,899
Operating earnings per share Basic $0.40 $1.65 $1.51 Diluted $0.38
$1.60 $1.45 Average tangible assets (in thousands) $1,851,095
$2,031,505 $1,641,991 Average tangible equity (in thousands)
101,334 116,444 106,275 Operating return on average tangible assets
1.63% 1.58% 1.64% Operating return on average tangible equity
29.70% 27.53% 25.35% OPERATING BASIS Non-interest expense
$14,519,860 $62,064,003 $52,578,047 Net interest income 19,340,399
82,409,322 71,369,711 Non-interest income 6,896,440 30,622,032
24,343,791 Efficiency Ratio 55.34% 54.91% 54.93%
PRNewswire-FirstCall -- Jan. 19 END FIRST AND FINAL ADD DATASOURCE:
Main Street Banks, Inc. Web site: http://www.mainstreetbank.com/
Copyright