<PAGE>
Exhibit 99
PRESS RELEASE
-------------
November 14, 2000 For more information, contact:
Immediate release Brian Hartline, President and CEO or
Robert Kuehl, CFO
(610) 685-1400
MAIN STREET BANCORP, INC., ANNOUNCES 18.9% INCREASE IN THIRD QUARTER CORE
EARNINGS AND CHANGE IN DIVIDEND POLICY
Main Street Bancorp, Inc., (NASDAQ: MBNK) announced net income, on an
operating basis, of $2.3 million for the third quarter ended September 30, 2000,
compared to $2.0 million for the third quarter ending September 30, 1999, an
increase of 18.9%. On a per share basis, operating net income for the third
quarter of 2000 was $0.22 per share compared to $0.19 per share for the third
quarter of 1999. Net income on an operating basis excludes special charges, net
of taxes.
During the third quarter of 2000, the Company incurred $961,000 of special
charges, relating to severance payments under an employment agreement to a
former executive. During the third quarter of 1999, the Company incurred a
similar charge of $1.7 million. Including the special charges, net income for
the quarter ended September 30, 2000 was $1.4 million, or $0.13 per share,
compared to $770,000, or $0.07 per share for the comparable quarter of 1999.
For the nine months ended September 30, 2000, net income, on an operating
basis, was $6.4 million compared to $6.6 million reported a year earlier.
Earnings per share, on an operating basis, were $0.61 for the nine months ended
September 30, 2000 compared to $0.63 for the nine months ending September 30,
1999. The decline in operating earnings resulted from the increased overhead
associated with the retail branch expansion last year coupled with a declining
interest rate spread on the leverage strategy associated with the retail branch
expansion.
For the nine months ended September 30, 2000, the Company incurred $5.8
million in special charges compared to $2.1 million a year earlier. The special
charges
<PAGE>
and other one-time charges include costs relating to the closing of Granite
Mortgage Corporation in Springfield, Virginia, severance payments and employee-
related costs, professional fees and write-down of assets and mortgage sale
losses. Including the special charges and other one-time charges, net income and
earnings per share for the nine months ended September 30, 2000 were $986,000
and $0.09, respectively and for the nine months ended September 30, 1999, net
income and earnings per share were $5.2 million and $0.49.
Total loans increased by $132.6 million, or 20.1%, from $658.7 million at
December 31, 1999 to $791.3 million at September 30, 2000. The increase in
loans was primarily in commercial and home equity loans. Deposits totaled $1.2
billion at September 30, 2000 compared to $1.0 billion at December 31, 1999, an
increase of 19.9% due to the new branches and deposit product promotions. This
increase was comprised of $125 million in certificates of deposits (28.6%) and
an $18 million increase in demand deposits (14.4%).
Net interest income for the third quarter of 2000 increased $700,000, or
6.4%, to $11.7 million versus $11.0 million for the third quarter of 1999,
calculated on a tax-equivalent basis. Net interest income, calculated on a tax-
equivalent basis, was $35.2 million for nine months ending September 30, 2000
compared to $32.0 million for the nine months ending September 30, 1999, an
increase of 10.7 %. The net interest margin decreased from 3.50% for the third
quarter of 1999 to 3.20% for the third quarter of 2000 and also decreased from
3.57% for the first nine months of 1999 to 3.24% for the first nine months of
1999. This decline was attributed to a more rapid repricing of retail deposits
and borrowed funds than interest-earning assets during this recent higher rate
environment. Additionally, the cost of the trust preferred issuance contributed
to the margin decline.
Total other expenses, excluding special charges, increased 9.6% to $10.3
million for the third quarter of 2000 compared to $9.4 million for the third
quarter of 1999 and increased 22.7% to $31.3 million for the first nine months
of 2000 compared to $25.5 million for the same period of 1999. These increases
for the quarter and year-to-date are a result of the overhead associated with
the new branches that have opened in the last 20 months. These increases
occurred in salaries, benefits, occupancy and other expenses.
Brian M. Hartline, President and CEO of the Company stated "I am pleased to
announce that the quarterly core earnings of the Company continue to grow during
the transition of the Company since the announcement of our reorganization in
April, 2000. We are encouraged by the growth of the core banking products
within our market areas, particularly the newer markets of Chester, Lehigh and
Montgomery Counties. Significant strides are being made to evaluate and improve
core earnings of the Company through restructuring the balance sheet,
reinvesting in the infrastructure of the Company and reduce or eliminate
inefficient procedures and/or lines of business.
On October 24, 2000, the Board of Directors of the Company approved a
change in the Company's dividend payout policy, reducing the annual cash
dividend from $0.56
2
<PAGE>
per share to $0.20 per share. The Board's decision to make the change in the
policy was based on the Company's current level of earnings, its desire to
reduce the dividend payout ratio commensurate with that of its peer group, and
its desire to reinvest a larger portion of earnings in the infrastructure of the
Company to maximize the future long term performance.
The Board of Directors of the Bank have approved special charges, other
one-time charges and additional loan loss provision of up to $8.5 million ($5.6
million after-tax), or $0.53 per share, to be recognized in the fourth quarter
of 2000. The charge would consist primarily of up to a $6.3 million pretax loss
associated with adopting FAS 133 and the expected subsequent sale of up to 20%
of the Company's securities portfolio. The proceeds from the sale are expected
to be used to payoff other borrowed funds. In addition, special charges of
$700,000 relate to the sale or closing of up to 20% of our branch network and
severance and employment related contracts. Based on the Company's credit
policy, the appointment of a Chief Credit Officer, recent economic changes and
the growth and complexity in the Company's loan portfolio, the Company will
increase its allowance for loan losses by approximately $1.5 million. The Board
approved these special charges and other one-time charges as part of an overall
plan to restructure the balance sheet and improve core earnings of the Company.
Main Street Bancorp, Inc is a $1.5 billion state-chartered bank holding
company in which its banking subsidiary Main Street Bank currently operates 45
offices in 10 counties through its divisions - Berks County Bank, Heritage Bank
and Main Street Bank. The Company is headquartered in Reading, Pennsylvania.
In addition to historical information, this information may contain
"forward-looking statements" which are made in good faith by Main Street
Bancorp, Inc. ("Main Street"), pursuant to the "safe harbor" provisions of the
Private Securities Litigation Reform Act of 1995. These forward-looking
statements include statements with respect to Main Street's strategies, goals,
beliefs, expectations, estimates, intentions, financial condition, results of
operations, future performance and business of Main Street.
Statements preceded by, followed by or that include the words "may,"
"could," "should," "pro forma," "looking forward," "would," "believe," "expect,"
"anticipate," "estimate," "intend," "plan," or similar expressions generally
indicate a forward-looking statement. These forward-looking statements involve
risks and uncertainties that are subject to change based on various important
factors (some of which, in whole or in part, are beyond Main Street's control).
Numerous competitive, economic, regulatory, legal and technological
factors, among others, could cause Main Street's financial performance to differ
materially from the goals, plans, objectives, intentions and expectations
expressed in such forward-looking statements. Main Street cautions that the
foregoing factors are not exclusive, and neither such factors nor any such
forward-looking statements takes into account the impact that any future
acquisition may have on Main Street and any such forward-looking statement.
Main Street does not undertake to update any forward-looking statement
whether written or oral, that may be made from time to time by or on behalf of
Main Street.
3
<PAGE>
MAIN STREET BANCORP, INC.
AND SUBSIDIARIES
CONSOLIDATED
BALANCE SHEETS
<TABLE>
<CAPTION>
September 30, December 31,
ASSETS 2000 1999
(Unaudited)
---------------------------------
(In thousands, except share data)
<S> <C> <C>
Cash and due from banks 37,216 49,904
Interest-bearing deposits with banks 101 114
Federal funds sold -- 470
Securities available for sale 365,781 438,173
Securities held to maturity 261,776 261,785
Loans receivable, net 791,290 658,725
Mortgages held for sale -- 4,854
Due from mortgage investors 5,216 4,957
Bank premises and equipment, net 37,258 36,477
Accrued interest receivable and other assets 37,882 41,288
---------- ----------
Total assets 1,536,520 1,496,747
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits:
Demand, non-interest bearing 139,907 122,283
Demand, interest bearing 131,266 137,352
Savings 387,082 327,422
Time deposits 562,613 437,459
---------- ----------
Total deposits 1,220,868 1,024,516
---------- ----------
Accrued interest payable and other liabilities 14,105 24,019
Other borrowed funds 150,227 274,434
Guaranteed preferred beneficial interests in corporation's junior
subordinated deferrable interest debentures, series A 10,000 10,000
Long term debt 60,000 85,000
---------- ----------
Total liabilities 1,455,200 1,417,969
---------- ----------
STOCKHOLDERS' EQUITY
Preferred stock, authorized and unissued 5,000,000 shares -- --
Common stock, par value $1.00 per share; authorized 50,000,000 shares;
issued and outstanding 2000 10,469,906 shares; 1999
10,429,953 shares 10,470 10,450
Surplus 64,667 64,548
Retained earnings 17,869 21,326
Accumulated other comprehensive income (11,686) (17,546)
---------- ----------
Total stockholders' equity 81,320 78,778
---------- ----------
Total liabilities and stockholders' equity 1,536,520 1,496,747
========== ==========
</TABLE>
4
<PAGE>
MAIN STREET BANCORP, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
<TABLE>
<CAPTION>
For the three month ended Forn the nine months ended
SEPTEMBER 30, SEPTEMBER 30,
2000 1999 2000 1999
------- ------ ------- ------
<S> <C> <C> <C> <C>
INTEREST INCOME (In thousands, except per share data)
Loans receivable, including fees 16,774 12,600 46,562 35,984
Interest and dividends on investment
securities:
Taxable 6,254 5,518 20,095 16,106
Tax-exempt 3,692 3,646 11,868 10,466
Other 12 31 33 49
------ ------ ------- ------
Total interest income 26,732 21,795 78,558 62,605
------ ------ ------- ------
INTEREST EXPENSE:
Deposits 12,844 8,846 34,826 24,655
Other borrowed funds 2,781 2,689 10,584 6,817
Long-term debt 1,225 1,039 3,808 4,014
------ ------ ------- ------
Total interest expense 16,850 12,574 49,218 35,486
------ ------ ------- ------
Net interest income 9,882 9,221 29,340 27,119
Provision for loan losses 750 200 2,125 800
------ ------ ------ ------
Net interest income after provision for
loan losses 9,132 9,021 27,215 26,319
------ ------ ------ ------
OTHER INCOME
Income from fiduciary activities 218 291 724 816
Customer service fees 2,083 951 5,793 2,408
Mortgage banking activities 330 330 185 1,029
Net realized losses on sale of securities (183) (35) (243) (113)
Other 315 225 722 510
------ ------ ------ ------
Total other income 2,763 1,762 7,181 4,650
------ ------ ------ ------
OTHER EXPENSES
Salaries and wages 3,900 3,686 11,805 10,056
Employee benefits 1,095 915 3,373 2,462
Special Charges 961 1,727 5,758 2,058
Occupancy 1,214 1,151 3,906 2,892
Equipment depreciation and maintenance 814 648 2,345 1,748
Other operating expenses 3,275 2,994 9,888 8,373
------ ------ ------ ------
Total other expenses 11,259 11,121 37,075 27,589
------ ------ ------ ------
Income before income tax 636 (338) (2,679) 3,380
Federal income taxes (benefit) (800) (1,108) (3,665) (1,773)
------ ------ ------ ------
NET INCOME 1,436 770 986 5,153
====== ====== ====== ======
OPERATING INCOME 2,324 1,955 6,427 6,603
====== ====== ====== ======
Basic earnings per share* $ 0.22 $ 0.19 $ 0.61 $ 0.63
====== ====== ====== ======
Diluted earnings per share* $ 0.22 $ 0.19 $ 0.61 $ 0.63
====== ====== ====== ======
</TABLE>
*Basic and diluted earnings per share are stated on an operating basis, which
excludes the special charges, other one-time charges and security losses, net of
taxes. Including the special charges, other one-time charges and security
losses, basic and diluted EPS would have been $0.13 and $0.07 for the third
quarter 2000 and 1999, respectively and $0.09 and $0.49 for the nine months
ended September 30, 2000 and 1999, respectively.
5
<PAGE>
Main Street Bancorp, Inc.
2000
($ in thousands, except per share)
<TABLE>
<CAPTION>
-------------- -------------- -------------- --------------
3Q00 3Q99 YTD00 YTD99
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
Income Statement: (3 months ending)
Interest income (te) 28,558 23,533 84,427 67,482
Interest expense 16,850 12,574 49,218 35,486
Net interest income (te) 11,708 10,959 35,209 31,996
Tax equivalent adjustment 1,826 1,738 6,079 4,877
Provision for loan losses 750 200 2,125 800
Non interest income (exc securities) 2,946 1,797 7,424 4,763
Non interest expenses 11,259 11,121 37,075 27,589
Security gains(losses) (183) (35) (243) (113)
Pre-tax income (loss) 636 (338) (2,679) 3,380
Taxes (benefit) (800) (1,108) (3,665) (1,773)
Extraordinary items(net of tax) 0 0 0 -
Net income 1,436 770 986 5,153
Net income, operating basis ** 2,324 1,955 6,427 6,603
EPS (diluted) $ 0.13 $ 0.07 $ 0.09 $ 0.49
EPS (diluted) operating basis ** $ 0.22 $ 0.19 $ 0.61 $ 0.63
Book value $ 7.77 $ 7.90 $ 7.77 $ 7.90
Book value - realized* $ 8.88 $ 9.09 $ 8.88 $ 9.09
Average # shares - basic 10,469,906 10,417,346 10,459,514 10,410,114
Average # shares - diluted 10,471,418 10,486,567 10,462,980 10,470,347
Common dividends per share $0.14 $0.14 $0.42 $0.42
Non interest income breakdown:
Customer service fees 2,083 951 5,793 2,408
Trust fees 218 291 724 816
Mortgage banking activities 330 330 185 1,029
Trading account profits - - - -
Other non-interest income 315 225 722 510
Total non-interest income 2,946 1,797 7,424 4,763
Non interest expense breakdown:
Salaries/benefits 4,995 4,601 15,178 12,518
Net occupancy 1,214 1,151 3,906 2,892
Equipment expense 814 648 2,345 1,748
OREO expenses 29 150 19 146
Special Charges 961 1,727 5,758 2,058
Other non-interest expense 3,246 2,844 9,869 8,227
Total non-interest expense 11,259 11,121 37,075 27,589
Balance Sheet: Period end:
Total assets 1,536,520 1,403,436
Total securities 627,557 648,403
Total loans(Net of unearned & allowance) 791,290 623,153
Commercial 474,185 359,950
Mortgage 211,441 185,623
Installment 113,848 84,511
Total deposits 1,220,868 1,018,370
Non-interest bearing demand 139,907 116,702
Interest-bearing demand 131,266 144,865
Savings 387,082 328,303
Time deposits 562,613 428,500
Total stockholders' equity 81,320 82,904
Intangibles 0 0
Allowance for loan losses 8,184 6,931
# of shares outstanding 10,469,906 10,429,953
Average balances and yield/cost analysis:
Total interest-earning assets te 1,450,056 7.81% 1,241,174 7.52% 1,452,534 7.76% 1,197,275
Total assets 1,536,898 1,329,332 1,534,507 1,273,452
Average loans 785,127 605,180 739,759 579,506
</TABLE>
6
<PAGE>
Main Street Bancorp, Inc.
2000
($ in thousands, except per share)
<TABLE>
<CAPTION>
-------------- -------------- -------------- --------------
3Q00 3Q99 YTD00 YTD99
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
Average equity 80,833 84,670 79,964 90,211
Total int. bearing liabilities 1,309,579 5.10% 1,126,970 4.43% 1,315,628 5.00% 1,073,442
Total deposits 1,053,926 4.83% 842,958 4.16% 994,754 4.68% 789,097
Net yield on earning assets(Margin) te 3.20% 3.50% 3.24% 3.57%
Miscellaneous data:
Gross charge-offs 239 480 1,248 1,584
Recoveries 62 261 305 493
Net charge-offs 177 219 943 1,091
Non-performing assets:
Non accruals 8,374 6,342
Restructured loans 73 98
90+ and not on nonaccrual 530 567
Other real estate 635 632
Total NPA's 9,612 7,639
Performance Ratios:
Return on average assets 0.37% 0.23% 0.09% 0.54%
Return on average assets - operating 0.60% 0.59% 0.56% 0.69%
Return on average equity 7.11% 3.64% 1.64% 7.62%
Return on average equity - operating 11.50% 9.24% 10.72% 9.76%
Return on average realized equity* 6.12% 3.48% 1.35% 7.29%
Return on average realized equity* - operating 9.90% 8.83% 8.77% 9.34%
Asset Quality Ratios:
Reserve for Loan Losses to Gross Loans 1.03% 1.11%
Reserve for Loan Losses to Nonperforming assets 85.14% 90.73%
Capital Ratios:
Tier 1 Capital 11.09% 12.66%
Total Capital 11.99% 13.59%
Leverage Ratio 6.59% 7.13%
</TABLE>
* Excludes effect on FASB 115
** Excludes security gains (losses), special charges and one-time charges, net
of taxes
7
<PAGE>
MAIN STREET BANCORP, INC.
AVERAGE BALANCE, AVERAGE RATES AND NET INTEREST MARGIN
<TABLE>
<CAPTION>
For three months ended: September 30, 2000 September 30, 1999
------------------------------------------------------------------------------------------------------------------------------------
Interest Interest
(Dollars in thousands) Average Income/ Yield/ Average Income/ Yield/
Balance Expense(1) Rate (2) Balance Expense(1) Rate (2)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INTEREST-EARNING ASSETS:
Interest-bearing deposits at banks $ 312 $ 5 6.36% $ 1,855 $ 24 5.13%
------------------------------------- ------------------------------------
Taxable securities 367,379 6,254 6.75 342,361 5,517 6.39
Tax-exempt securities 296,788 5,496 7.35 291,308 5,305 7.23
------------------------------------- -----------------------------------
Total securities 664,167 11,750 7.02 633,669 10,822 6.78
------------------------------------- -----------------------------------
Federal funds sold 450 7 6.17 470 7 5.91
------------------------------------- -----------------------------------
Commercial loans 461,938 10,466 8.99 340,054 7,371 8.60
Mortgage loans 212,800 3,995 7.45 183,475 3,568 7.72
Installment loans 110,389 2,335 8.39 81,651 1,741 8.46
------------------------------------- -----------------------------------
Total loans (4) 785,127 16,796 8.49 605,180 12,680 8.31
------------------------------------- -----------------------------------
Total interest-earning assets 1,450,056 28,558 7.81 1,241,174 23,533 7.52
========================= =====================
Unrealized appreciation on available
for sale securities (20,092) (14,705)
Allowance for loan losses (7,805) (7,003)
Non-interest earning assets 114,739 109,866
---------- ------------
Total assets $ 1,536,898 $ 1,329,332
========== ============
INTEREST-BEARING LIABILITIES:
Demand deposits, interest-bearing $ 135,256 1,094 3.21 124,342 962 3.07
Savings deposits 389,025 3,920 4.00 329,389 2,750 3.31
Other time deposits 529,645 7,830 5.87 389,227 5,134 5.23
------------------------------------- -----------------------------------
Total deposits 1,053,926 12,844 4.83 842,958 8,846 4.16
Other borrowed funds 165,273 2,781 6.68 199,012 2,689 5.36
Junior subordinated debentures 10,000 241 9.56 - - -
Long-term borrowings 80,380 984 4.86 85,000 1,039 4.85
------------------------------------- -----------------------------------
Total interest-bearing liabilities 1,309,579 16,850 5.10 1,126,970 12,574 4.43
------------------------------------- -----------------------------------
Demand deposits, non-interest bearing 131,239 107,620
Other non-interest bearing liabilities 15,247 10,072
---------- ------------
Total liabilities 1,456,065 1,244,662
Stockholders' equity 80,833 84,670
---------- ------------
Total liabilities and
stockholders' equity $ 1,536,898 $ 1,329,332
========== ============
Net interest income $ 11,708 $ 10,959
============== ============
Net interest margin (5) 3.20% 3.50%
========== ========
</TABLE>
(1) Includes loan fee income.
(2) Yields on investments are calculated on amortized cost. All yields are
annualized.
(3) Full taxable equivalent basis, using a 34% effective tax rate and adjusted
for TEFRA disallowance.
(4) Loans outstanding include non-accruing loans.
(5) Represents the difference between interest earned and interest paid,
divided by average total interest earning assets.
8
<PAGE>
MAIN STREET BANCORP, INC.
AVERAGE BALANCE, AVERAGE RATES AND NET INTEREST MARGIN
<TABLE>
<CAPTION>
For nine months ended: September 30, 2000 September 30, 1999
------------------------------------------------------------------------------------------------------------------------------------
Interest Interest
(Dollars in thousands) Average Income/ Yield/ Average Income/ Yield/
Balance Expense(1) Rate (2) Balance Expense(1) Rate (2)
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INTEREST-EARNING ASSETS:
Interest-bearing deposits
at banks $ 248 $ 12 6.46 % $ 815 $ 32 5.25 %
------------------------------------------ --------------------------------------
Taxable securities 397,336 20,095 6.76 336,057 16,106 6.41
Tax-exempt securities 314,728 17,674 7.50 280,427 15,227 7.26
------------------------------------------ --------------------------------------
Total securities 712,064 37,769 7.09 616,484 31,333 6.80
------------------------------------------ --------------------------------------
Federal funds sold 463 21 6.06 470 17 4.84
------------------------------------------ --------------------------------------
Commercial loans 426,041 28,340 8.89 324,330 20,606 8.49
Mortgage loans 211,452 11,906 7.52 177,787 10,511 7.90
Installment loans 102,266 6,379 8.33 77,389 4,983 8.61
------------------------------------------ --------------------------------------
Total loans (4) 739,759 46,625 8.42 579,506 36,100 8.33
------------------------------------------ --------------------------------------
Total interest-earning
assets 1,452,534 84,427 7.76 1,197,275 67,482 7.54
----------------------------- ------------------------
Unrealized gains (losses) on
available for sale securities (24,915) (6,084)
Allowance for loan losses (7,376) (7,086)
Non-interest earning assets 114,264 89,347
---------- -----------
Total assets $ 1,534,507 $ 1,273,452
---------- -----------
INTEREST-BEARING LIABILITIES:
Demand deposits, interest-
bearing $ 133,797 3,176 3.17 % $ 100,860 2,180 2.89 %
Savings deposits 372,495 10,787 3.87 330,467 8,295 3.36
Other time deposits 488,462 20,863 5.71 357,770 14,180 5.30
------------------------------------------ --------------------------------------
Total deposits 994,754 34,826 4.68 789,097 24,655 4.18
Other borrowed funds 227,425 10,584 6.22 175,975 6,817 5.18
Junior subordinated debentures 10,000 722 9.64 - -
Long-term borrowings 83,449 3,086 4.94 108,370 4,014 4.95
------------------------------------------ --------------------------------------
Total interest-bearing
liabilities 1,315,628 49,218 5.00 1,073,442 35,486 4.42
------------------------------------------ --------------------------------------
Demand deposits,
non-interest bearing 123,811 100,142
Other non-interest-
bearing liabilities 15,104 9,657
---------- -----------
Total liabilities 1,454,543 1,183,241
Stockholders' equity 79,964 90,211
---------- -----------
Total liabilities and
stockholders' equity $ 1,534,507 $ 1,273,452
---------- -----------
Net interest income $ 35,209 $ 31,996
------------- ------------
Net interest margin (5) 3.24 % 3.57 %
----------- ---------
</TABLE>
(1) Includes loan fee income.
(2) Yields on investments are calculated on amortized cost. All yields are
annualized.
(3) Full taxable equivalent basis, using a 34% effective tax rate and adjusted
forTEFRA disallowance.
(4) Loans outstanding include non-accruing loans.
(5) Represents the difference between interest earned and interest paid,
divided by average total interest earning assets.
9
