MSBK Main Street Banks (MM)

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/

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