________________________________________________________________
________________________________________________________________
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) January 18,
2000
MAIN STREET BANCORP, INC.
(Exact name of registrant as specified in its charter)
Pennsylvania 0-16533 23-2960905
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Ident. No.)
601 Penn Street, Reading, Pennsylvania 19601
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (610)685-1400
N/A
(Former name or former address, if changed since last report.)
________________________________________________________________
________________________________________________________________
Item 5. Other Events.
The press release of the Registrant, dated January 18,
2000, is attached hereto as Exhibit 99.1 and is incorporated
herein by reference.
Item 7. Financial Statements and Exhibits.
(a) Exhibits.
The following exhibit is filed herewith:
99.1 Press release, dated January 18, 2000, of Main
Street Bancorp, Inc.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of 1934, the Registrant has duly caused this report to be signed
on its behalf by the undersigned hereunto duly authorized.
MAIN STREET BANCORP, INC.
Dated: January 24, 2000
/s/ Nelson R. Oswald
Nelson R. Oswald
Chairman and Chief Executive
Officer
EXHIBIT INDEX
Exhibit
Number Description
99.1 Press release, dated January 18, 2000, of
Main Street Bancorp, Inc.
Exhibit 99.1
PRESS RELEASE
January 18, 2000 For more information, contact:
Immediate release Nelson R. Oswald, Chairman or
Robert D. McHugh, Jr., CFO or
Donna L. Rickert, Controller
(610) 685-1400
MAIN STREET BANCORP, INC.,
ANNOUNCES FOURTH QUARTER EARNINGS
Main Street Bancorp, Inc., (NASDAQ: MBNK) announced net
income of $2.8 million for the fourth quarter ended December 31,
1999, compared to $3.5 million for the fourth quarter ended
December 31, 1998. On a per share basis, net income for the
fourth quarter of 1999 was 27 cents compared to 34 cents for the
fourth quarter of 1998. Compared to the third quarter of 1999,
earnings on a operating basis increased 42.9% and earnings per
share, on an operating basis, increased 42.1%. For the year
ended December 31, 1999, net income, on an operating basis, was
$9.4 million compared to $11.7 million reported a year earlier.
Earnings per share, on an operating basis, were 90 cents for the
year ended December 31, 1999 compared to $1.12 for the year
ended December 31, 1998. Including after-tax severance
payments, net income and earnings per share for 1999 were $7.9
million and 76 cents, respectively. Earnings for the year 1999
and the fourth quarter of 1999 decreased from 1998 due to
expected higher personnel, occupancy, advertising and related
costs associated with the major branch expansion plan announced
in December of 1998. During 1999, the Company opened 21 new
full service branch offices throughout eastern Pennsylvania and
Hunterdon County, New Jersey.
Total assets at December 31, 1999 increased $338 million,
or 29.2%, to $1.5 billion, compared to $1.2 billion reported a
year ago. Total loans increased by $125.3 million, or 23.5%,
from $533.4 million at December 31, 1998 to $658.7 million at
December 31, 1999. Deposits totaled $1.0 billion at December
31, 1999 compared to $818.6 million at December 31, 1998, an
increase of 22.2%.
Net interest income for fourth quarter of 1999 increased
$2.9 million, or 34.1%, to $11.4 million versus $8.5 million for
the fourth quarter of 1998, calculated on a tax-equivalent
basis. Net interest income, calculated on a tax-equivalent
basis, was $43.4 million for year ended December 31, 1999
compared to $32.5 million for the year ended December 31, 1998,
an increase of 33.5 %.
Main Street Bancorp, Inc. currently operates 43 offices in
10 counties through its divisions - Berks County Bank, Heritage
Bank and Main Street Bank. The Company is headquartered in
Reading, PA.
Fourth Quarter 1999 1998
Net Income $2.8 million $3.5 million
Basic Earnings Per Share 27 cents 34 cents
Diluted Earnings Per Share 27 cents 34 cents
Net Interest Income, tax-
equivalent $11.4 million $8.5 million
Assets $1.5 billion $1.2 billion
Deposits $1.0 billion $818.6 million
For the year 1999 1998
Net Income* $9.4 million $11.7 million
Basic Earnings Per Share* 90 cents $1.13
Diluted Earnings Per Share* 90 cents $1.12
Net Income $7.9 million $11.7 million
Basic Earnings Per Share 76 cents $1.13
Diluted Earnings Per Share 76 cents $1.12
Net Interest Income, tax-
equivalent $43.4 million $32.5 million
* Reported on an operating basis.
MAIN STREET BANCORP, INC.
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 1999 and 1998
(Unaudited)
<TABLE>
<CAPTION>
ASSETS 1999 1998
(In thousands, except share data)
<S> <C> <C>
Cash and due from banks $ 49,904 $ 28,710
Interest-bearing deposits with banks 114 336
Federal funds sold 470 470
Securities available for sale 438,173 534,526
Securities held to maturity 261,785 25
Loans receivable, net 658,725 533,395
Mortgages held for sale 4,854 5,069
Due from mortgage investors 4,957 14,567
Bank premises and equipment, net 36,477 25,717
Accrued interest receivable and other assets 41,288 15,726
Total assets $1,496,747 $1,158,541
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits:
Demand, non-interest bearing $ 122,283 $ 102,432
Demand, interest bearing 137,352 68,116
Savings 327,422 326,749
Time deposits 437,459 321,253
Total deposits 1,024,516 818,550
Accrued interest payable and other
liabilities 21,818 24,007
Other borrowed funds 276,635 86,072
Guaranteed preferred beneficial interests in
corporation's junior subordinated deferrable
interest debentures, series A 10,000 -
Long term debt 85,000 135,000
Total liabilities 1,417,969 1,063,629
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 1999
10,449,657 shares; 1998 10,388,443 shares 10,450 10,388
Surplus 64,548 64,134
Retained earnings 21,326 19,227
Accumulated other comprehensive income (17,546) 1,163
Total stockholders' equity 78,778 94,912
Total liabilities and stockholders' equity $1,496,747 $1,158,541
</TABLE>
MAIN STREET BANCORP, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
<TABLE>
<CAPTION>
For the three months ended For the twelve months ended
December 31, December 31,
1999 1998 1999 1998
(In thousands, except per share data)
<S> <C> <C> <C> <C>
INTEREST INCOME
Loans receivable, including fees $13,348 $11,403 $49,332 $44,544
Interest and dividends on
investment securities:
Taxable 5,836 5,022 21,942 15,545
Tax-exempt 4,092 2,241 14,558 5,351
Other 8 12 57 279
Total interest income 23,284 18,678 85,889 65,719
INTEREST EXPENSE:
Deposits 9,834 7,646 34,489 27,268
Other borrowed funds 3,082 1,278 9,899 2,490
Long-term debt 1,100 1,298 5,114 3,506
Total interest expense 14,016 10,222 49,502 33,264
Net interest income 9,268 8,456 36,387 32,455
Provision for loan losses 417 0 1,217 2,210
Net interest income after
provision for loan losses 8,851 8,456 35,170 30,245
OTHER INCOME
Income from fiduciary activities 297 340 1,113 966
Customer service fees 1,316 708 3,724 2,591
Mortgage banking activities 304 661 1,333 2,017
Net realized gains on sale of
securities 17 456 (96) 4,329
Other 236 200 746 398
Total other income 2,170 2,365 6,820 10,301
OTHER EXPENSES
Salaries and wages 3,253 2,667 13,309 9,857
Employee benefits 1,032 664 3,494 2,496
Change in Control payments (31) - 2,027 -
Occupancy 1,192 496 4,084 2,081
Equipment depreciation and
maintenance 682 450 2,430 1,563
Merger expenses - - - 1,963
Other operating expenses 2,900 1,838 11,273 7,132
Total other expenses 9,028 6,115 36,617 25,092
Income before income tax 1,993 4,706 5,373 15,454
Federal income taxes (801) 1,186 (2,574) 3,711
NET INCOME $2,794 $3,520 $7,947 $11,743
Basic earnings per share* $0.27 $0.34 $0.90 $1.13
Diluted earnings per share* $0.27 $0.34 $0.90 $1.12
</TABLE>
*Net operating basis, excluding the change of control payments
and security losses, net of taxes. Including the change of
control payments and security losses, basic and diluted EPS
would have been $0.76 for the year ended 12/31/99.
<TABLE>
<CAPTION>
Main Street Bancorp, Inc.
1999(Unaudited)
($ in thousands, except per share)
1Q99 2Q99 3Q99 4Q99 YTD99
Income Statement: (3 months ending)
<S> <C> <C> <C> <C> <C>
Interest income (te) 21,214 22,735 23,533 25,398 92,880
Interest expense 11,064 11,848 12,574 14,016 49,502
Net interest income (te) 10,150 10,887 10,959 11,382 43,378
Tax equivalent adjustment 1,535 1,604 1,738 2,114 6,991
Provision for loan losses 300 300 200 417 1,217
Non interest income (exc securities) 1,587 1,379 1,797 2,153 6,916
Non interest expenses 7,146 9,322 11,121 9,028 36,617
Security gains(losses) (2) (76) (35) 17 (96)
Pre-tax income (loss) 2,754 964 (338) 1,993 5,373
Taxes (benefit) 23 (688) (1,108) (801) (2,574)
Extraordinary items(net of tax) 0 0 0 0 0
Net income 2,731 1,652 770 2,794 7,947
Net income on an operating basis 2,731 1,917 1,955 2,794 9,397
EPS (diluted) $0.26 $0.16 $0.07 $0.27 $0.76
EPS (diluted) - on an operating basis $0.26 $0.18 $0.19 $0.27 $0.90
Book value $8.94 $8.41 $7.90 $7.54 $7.54
Book value - realized* $9.14 $9.16 $9.09 $9.22 $9.22
Average # shares - basic 10,394,441 10,404,802 10,417,346 10,439,661 10,414,195
Average # shares - diluted 10,684,390 10,458,584 10,486,567 10,540,664 10,490,995
Common dividends per share $0.14 $0.14 $0.14 $0.14 $0.56
Non interest income breakdown:
Customer service fees 662 795 951 1,316 3,724
Trust fees 283 242 291 297 1,113
Mortgage banking activities 456 243 330 304 1,333
Trading account profits 0 0 0 0 0
Other non-interest income 186 99 225 236 746
Total non-interest income 1,587 1,379 1,797 2,153 6,916
Non interest expense breakdown:
Salaries/benefits 3,712 4,205 4,601 4,285 16,803
Change in control payment 0 331 1,727 (31) 2,027
Net occupancy 753 988 1,151 1,192 4,084
Equipment expense 491 609 648 682 2,430
OREO expenses 27 (31) 150 (15) 131
Other non-interest expense 2,163 3,220 2,844 2,915 11,142
Total non-interest expense 7,146 9,322 11,121 9,028 36,617
<CAPTION>
Balance Sheet: Period end:
<S> <C> <C> <C> <C>
Total assets 1,290,673 1,306,896 1,403,436 1,496,747
Total securities 645,772 616,915 648,403 699,958
Total loans(Net of unearned & allowance) 559,935 579,882 623,153 658,725
Commercial 318,401 332,529 359,950 377,147
Mortgage 173,474 176,220 185,623 195,214
Installment 75,312 78,083 84,511 93,366
Total deposits 866,072 905,909 1,018,370 1,024,516
Non-interest bearing demand 94,787 106,862 116,702 122,283
Interest-bearing demand 99,400 116,951 144,865 137,352
Savings 327,651 330,771 328,303 327,422
Time deposits 344,234 351,325 428,500 437,459
Total stockholders' equity 92,911 87,536 82,381 78,778
Total stockholders' equity - realized* 95,082 95,365 94,826 96,324
Intangibles 0 0 0 1,416
Allowance for loan losses 7,252 6,950 6,931 7,002
# of shares outstanding 10,397,360 10,407,903 10,429,953 10,449,657
<CAPTION>
Average balances and yield/cost analysis:
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Total interest-earning assets te 1,134,044 7.59% 1,216,038 7.50% 1,241,174 7.52% 1,320,025 7.63% 1,228,133 7.56%
Total assets 1,201,799 1,287,382 1,329,332 1,409,852 1,307,827
Average loans 555,062 578,127 605,180 641,104 595,032
Average equity 94,727 91,345 84,670 81,682 88,062
Total int. bearing liabilities 1,007,602 4.45% 1,084,969 4.38% 1,126,970 4.43% 1,201,897 4.63% 1,105,819 4.48%
Total deposits 739,836 4.22% 783,364 4.15% 842,958 4.16% 895,392 4.36% 815,879 4.23%
Net yield on earning assets(Margin) te 3.63% 3.59% 3.50% 3.42% 3.53%
<CAPTION>
Miscellaneous data:
<S> <C> <C> <C> <C> <C>
Gross charge-offs 331 773 480 377 1,961
Recoveries 61 171 261 31 524
Net charge-offs 270 602 219 346 1,437
Non-performing assets:
Non accruals 6,905 5,022 6,342 5,323
Restructured loans 109 105 98 106
90+ and not on nonaccrual 396 524 567 513
Other real estate 514 650 632 459
Total NPA's 7,924 6,301 7,639 6,401
Return on average assets 0.91% 0.51% 0.23% 0.79% 0.61%
Return on average equity 11.53% 7.23% 3.64% 13.68% 9.02%
Return on average realized equity* 11.63% 7.11% 3.31% 11.69% 8.41%
<CAPTION>
<S> <C> <C> <C> <C> <C>
Active Accounts 12/98
DDA/Savings 90,746 95,943 102,087 110,220 116,411
CD's 27,875 29,287 29,859 34,428 35,293
IRA's 2,684 2,798 2,930 3,106 3,244
<FN>
*Excludes effect of FASB 115.
</TABLE>
"WORD"
Long Document Name:
PRESS RELEASE - MAIN STREET BANCORP, INC. -
FOURTH QUARTER EARNINGS
System Document Number:
38095
Additional Information:
RECEIVED VIA E-MAIL AND FORMATTED TO SYSTEM -
EDGAR FORMAT USED - PLEASE DO NOT
CHANGE ANY STYLES OR FORMATTING IN
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Notes:
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Origination Date:
January 21, 2000
Author's Initials:
wjr
Last Revised By:
laz/mm/iez/ems
Last Revision Date:
1-24;1-24;1-24
Quick Fill Numbering:
7
01/25/00/SL1 38095v1/01350.002
9
01/25/00/SL1 38095v1/01350.002
