MainStreet in Va. Buying Third D.C.-Area Bank

MainStreet BankGroup, Martinsville, Va., said it will buy $80 million- asset Ballston Bancorp, Arlington, Va., for $19.5 million in stock.

The price equals 2.4 times Ballston's book value.

The deal would give $1.9 billion-asset MainStreet its third bank in the lucrative Washington suburbs. Since the beginning of 1998 MainStreet closed deals to buy Commerce Bank, College Park, Md., and Tysons National Bank, McLean, Va.

It also has eight banking subsidiaries in central and southwestern Virginia.

James E. Adams, executive vice president and chief financial officer of MainStreet, said each of the three banks will retain its name and charter for the time being.

This is the second time Ballston has agreed to be bought. Last June Abigail Adams National Bancorp, Washington, said it would buy Ballston for $14 million.

But that deal fell through when Abigail Adams failed to win shareholder approval by Dec. 31.

The MainStreet deal is expected to close during the third quarter.