MainStreet Announces 3Q 2010 Earnings
on November 12, 2010For Immediate Release: November 12, 2010
MainStreet BankShares, Inc., (“MainStreet”), in Martinsville, Virginia announced its earnings today for the third quarter and year-to-date periods ending September 30, 2010 compared to September 30, 2009. Net income for the third quarter ending September 30, 2010 was $149,671, or $.09 per basic share, compared to $107,228, or $.06 per basic share, quarter-to-date September 30, 2009. Net income for the year-to-date period ending September 30, 2010 was $576,063, or $.34 per basic share, compared to $629,243, or $.37 per basic share for the year-to-date period ending September 30, 2009. Book value per share was $12.98 at September 30, 2010. Total assets at September 30, 2010 were $223.4 million compared to $225.2 million at December 31, 2009, a modest decline of $1.8 million, or .79%.
Larry A. Heaton, President and Chief Executive Officer, stated, “As of September 30, 2010, loans net of unearned deferred fees and costs declined 3.27% from year end 2009. Based upon the continued softness in lending, our overnight funds and investments continue to grow. Total cash, cash equivalents and securities increased 9.59% from year end. This ongoing trend in our balance sheet composition has a negative drag on earnings based upon the modest yields we receive on investments versus the higher yield in loans. Our liquidity ratio remains strong at 16.71% at quarter end. Our non-performing assets (non-accrual loans, loans past due 90 days and over, and other real estate) remained steady from second quarter with a slight increase of approximately $600 thousand. During the quarter, given the ongoing uncertainty of recovery, elevated levels of unemployment, along with our normal credit risk management process, we allocated an additional $505,600 into our loan loss reserve. We have ample money to loan and continue to look for opportunities.”
Mr. Heaton also commented, “Our Company remains well capitalized with actual Tier I leverage capital ratio at 9.77% and total risked based capital ratio at 15.00% at September 30, 2010.”
MainStreet is the bank holding company for Franklin Community Bank, N.A. (“Franklin Bank”) and MainStreet RealEstate, Inc.
Contact: Larry A. Heaton, President and CEO
MainStreet BankShares, Inc.
Martinsville, Virginia
(540) 489-3412
