Mainstreet Financial Corp. (MSFN)

[$hylo]

The Company completed an initial public stock offering on December 22, 2006. It sold 355,352 shares of common stock in that offering for $10.00 per share. The Company's employee stock ownership plan (the "ESOP") purchased 28,428 shares with the proceeds of a loan from a third party bank. The Company received net proceeds of $2,897,238 million in the public offering, 50% of which was contributed to the Bank and $1,300,000 million of which was used to reduce the outstanding balance of the bank loan. Upon completion of the offering, the Company issued 400,716 shares of common stock to MHC, so that MHC owns 53% of its outstanding common stock.