Archives---April, 2001---Tom Depping and Today

Main Street Bank Financial statements included Last three paragraphs,
plus P.S., of resignation made public in Leasing News:

“Shortly after the acquisition is complete I will be leaving. While American Express is a great company and they will put new leadership in place that will help our culture make the transformation from a small entrepreneurial company to a major world class financial services company, from my perspective, I think it is time to seek new challenges. I am more like the gazelle than the lion. I need the thrill of the chase to get motivated every morning.

“Thank you once again for helping make SierraCities/First Sierra the best small ticket company on the planet. We should have a very bright future as part of American Express.

“I wish you all the best.

“Tom

“P.S. Make sure the lion does not go hungry!”

Today, Tom Depping is Chairman and Chief Executive Officer of Main Street, Texas.

“An investor group, led by Thomas Depping, recently made an investment of over $21 million in the Bank. Main Street will use these funds to capitalize its new equipment leasing division to provide funding to equipment leasing companies and lease brokers on a national basis.

“Depping has been active in the equipment leasing industry for over 22 years. In 1994 he founded publicly traded First Sierra Financial, Inc. which was acquired by American Express in 2001. Prior to 1994 he served as President of Sun America, Inc's equipment leasing subsidiary.

“Depping stated: "As we develop our national presence in the equipment leasing industry, Main Street Bank will truly become 'America's Small Business Bank.'''

“Main Street National Bank was formed in 1984 and currently serves the Texas market.”

November 19, 2005 company press release

December 31, 2005 Balance Sheet:

Definition	Dollar figures in thousands	Main Street National Bank Kingwood, TX December 31, 2005	Main Street National Bank Cleveland, TX December 31, 2004
Assets and Liabilities
1	Total employees (full-time equivalent)	54	24
2	Total assets	68,430	52,712
3	Cash and due from depository institutions	2,637	2,852
4	Interest-bearing balances	0	0
5	Securities	11,049	12,650
6	Federal funds sold & reverse repurchase agreements	2,605	13,995
7	Net loans & leases	46,979	20,836
8	Loan loss allowance	875	422
9	Trading account assets	0	0
10	Bank premises and fixed assets	3,768	1,934
11	Other real estate owned	352	46
12	Goodwill and other intangibles	0	0
13	All other assets	1,040	399
14	Total liabilities and capital	68,430	52,712
15	Total liabilities	52,833	33,519
16	Total deposits	50,749	33,064
17	Interest-bearing deposits	38,928	21,264
18	Deposits held in domestic offices	50,749	33,064
19	% insured (estimated)	89.90%	84.62%
20	Federal funds purchased & repurchase agreements	0	0
21	Trading liabilities	0	0
22	Other borrowed funds	0	0
23	Subordinated debt	0	0
24	All other liabilities	2,084	455
25	Equity capital	15,597	19,193
26	Perpetual preferred stock	0	0
27	Common stock	1,401	1,401
28	Surplus	17,652	17,652
29	Undivided profits	-3,456	140
	Memoranda:
30	Noncurrent loans and leases	28	94
31	Income earned, not collected on loans	288	239
32	Earning assets	60,633	47,481
33	Long-term assets (5+ years)	5,889	3,472
34	Average Assets, year-to-date	60,625	39,250
35	Average Assets, quarterly	66,845	44,324
36	Volatile liabilities	14,814	4,840
37	Insider loans	0	0
38	FHLB advances	0	0
39	Loans and leases held for sale	0	0
40	Unused loan commitments	4,877	5,320
41	Tier 1 (core) capital	15,610	19,193
42	Total unused commitments	4,877	5,320
43	Restructured Loans and leases	0	0
44	Quarterly mutual fund sales	0	0
45	Derivatives	0	0

December 31, 2006 Profit and Loss Statement:

Definition	Dollar figures in thousands	Main Street National Bank Kingwood, TX December 31, 2005	Main Street National Bank Cleveland, TX December 31, 2004
Income and Expense		(Year-to-date)	(Year-to-date)
1	Number of institutions reporting	1	1
2	Total interest income	3,756	1,938
3	Total interest expense	799	362
4	Net interest income	2,957	1,576
5	Provision for loan and lease losses	651	277
6	Total noninterest income	1,242	494
7	Fiduciary activities	0	0
8	Service charges on deposit accounts	383	449
9	Trading account gains & fees	0	0
10	Additional noninterest income	859	45
11	Total noninterest expense	7,132	2,206
12	Salaries and employee benefits	3,811	1,018
13	Premises and equipment expense	1,411	335
14	Additional noninterest expense	1,910	853
15	Pre-tax net operating income	-3,584	-413
16	Securities gains (losses)	0	0
17	Applicable income taxes	0	0
18	Income before extraordinary items	-3,584	-413
19	Extraordinary gains - net	0	0
20	Net income	-3,584	-413
21	Net charge-offs	198	65
22	Cash dividends	0	0
23	Sale, conversion, retirement of capital stock, net	0	17,030
24	Net operating income	-3,584	-413

J.M."Mike" Hofmann is president and director. He states, “Our initial business plan anticipated significant losses for a period of time in order to build our infrastructure and ramp up our lease volume. Over the past year we have invested millions in state of the art software, a new 22,000 square foot operations center and a 500% increase in the size of our bank staff.

“This huge investment was made to support our growth in the small ticket equipment industry and to serve our nationwide base of brokers, vendors and employees.

“During 2005 we doubled the size of the bank as we increased our deposit base and the size of our equipment lease portfolio. We continue to be very pleased with our growth and look forward to a great year in 2006 and beyond."

Main Street National Bank
P. O. Box 5799
Kingwood, Texas 77325
Phone: 281.348.2011
FAX: 281.312.4206
e-mail: mhofmann@msnbank.com

(From 1999 to 2000, Mike served as Executive Vice President of First Sierra Financial, Inc., and was instrumental in developing the firm's commercial banking strategy. Mike has over 35 years operating experience in the financial services industry.

(Mike graduated from Michigan State University, College of Business and Stonier Graduate School of Banking at Rutgers University.)