CHAMPAIGN, Ill., April 24 /PRNewswire-FirstCall/ -- Main Street
Trust, Inc. (OTC:MSTI) (BULLETIN BOARD: MSTI) reported strong
earnings, posting $0.46 in unaudited consolidated net income per
diluted share for the quarter ended March 31, 2006, compared to
$0.41 per diluted share for the same period in 2005, an increase of
12.20%. Consolidated net income for the quarter totaled $4.690
million compared to $3.933 million for the same period in 2005, an
increase of 19.25%. Van A. Dukeman, President and CEO, stated that,
"Main Street had another excellent quarter highlighted by the
continued growth of assets under management in our Wealth
Management Division to $2.185 billion. We believe these positive
results are achieved through our continued focus on building solid
relationships with our clients through trust, knowledge and
service. Our focus on growth of assets under management is
consistent with our strategic plan to grow in this area to $3-5
billion over the next 5-8 years." Dukeman also highlighted
activities of the first quarter, which included a new website, a
new branch prototype, new Health Savings Account products, and a
home equity loan growth strategy in the Retail Division. Cash
Dividend Paid The Company distributed a $0.23 per share cash
dividend on April 21, 2006, payable to shareholders of record on
April 7, 2006. This is the second quarterly cash dividend paid in
2006, and represents a 4.55% increase in the quarterly dividends
paid for the same period in 2005. Annual Meeting of Shareholders
Main Street Trust, Inc. will hold it's Annual Meeting of
Shareholders on Wednesday, May 17, 2006 at 6:00 pm at The Virginia
Theatre, 203 W. Park Avenue, Champaign, Illinois. Franchise Main
Street Trust, Inc. is a diversified financial services company with
$1.58 billion in assets as of March 31, 2006, providing financial
services at 23 locations in Downstate Illinois. Main Street Bank
& Trust offers online banking ( http://www.mainstreettrust.com/
) and surcharge free ATM access at over 80 locations throughout
Illinois. In addition, Main Street Wealth Management has $2.19
billion of financial assets under management for individuals and
institutions. Main Street Trust, Inc. also owns a retail payment
processing subsidiary -- FirsTech, Inc., which processes over 25
million items per year. SELECTED FINANCIAL HIGHLIGHTS (dollars in
thousands, except share data) Three Months Ended Mar. 31, Dec. 31,
Mar. 31, 2006 2005 2005 EARNINGS & PER SHARE DATA Basic
earnings per share $0.46 $0.44 $0.42 Weighted average shares of
common stock outstanding 10,141,775 10,197,424 9,453,196 Diluted
earnings per share $0.46 $0.44 $0.41 Weighted average shares of
common stock and dilutive potential common shares outstanding
10,264,692 10,294,786 9,554,697 Market price per share at period
end(1) $30.75 $29.85 $29.60 Price to book ratio(1) 214.73% 210.66%
244.63% Price to earnings ratio(1,2) 16.53 16.40 18.85 Cash
dividends paid per share 0.23 0.22 0.22 Cash dividends declared per
share 0.23 0.23 0.22 Book value per share $14.32 $14.17 $12.10
Tangible book value per share(3) $12.02 $11.86 $12.10 Ending number
of common shares outstanding 10,132,875 10,146,675 9,460,870
AVERAGE BALANCES Assets $1,595,112 $1,593,509 $1,218,171 Investment
securities 469,692 389,215 346,215 Gross loans(4) 990,736 1,025,537
771,499 Earning assets 1,466,802 1,470,756 1,137,086 Deposits
1,249,953 1,243,489 958,418 Interest bearing liabilities 1,208,799
1,222,910 909,268 Common shareholders' equity 144,877 144,286
114,639 END OF PERIOD FINANCIAL DATA Tax equivalized net interest
income $12,461 $13,057 $10,117 Gross loans(4) 976,859 1,018,060
774,602 Allowance for loan losses 13,599 13,472 9,955 Total assets
under management 2,185,360 2,115,238 1,943,926 PERFORMANCE RATIOS
Return on average assets(5) 1.19% 1.12% 1.31% Return on average
equity(5) 13.13% 12.37% 13.91% Net yield on average earning
assets(5,6) 3.45% 3.52% 3.61% Interest spread(5,6) 2.90% 3.05%
3.21% Net overhead efficiency ratio(6,7) 56.71% 57.19% 56.55%
Non-interest revenues as a % of total revenues(7,8) 29.96% 28.96%
32.77% Allowance for loan losses to loans 1.39% 1.32% 1.29%
Allowance as a percentage of non- performing loans 176.08% 449.07%
401.90% Average loan to deposit ratio 79.26% 82.47% 80.50% Dividend
payout ratio(2) 48.39% 48.90% 54.78% ASSET QUALITY Net charge-offs
$323 $666 $25 Non-performing loans 7,723 3,000 2,477 Other
non-performing assets 804 224 140 (1) Closing price at end of
period (2) Last 12-months earnings (3) Net of goodwill and
core-deposit intangibles (4) Loans include mortgage loans held for
sale and nonaccrual loans (5) Annualized (6) On a fully
tax-equivalized basis (7) Does not include securities gains/losses
(8) Net of interest expense Special Note Concerning Forward-Looking
Statements This document may contain forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995 with respect to the financial condition, results of
operations, plans, objectives, future performance and business of
the Company. Forward-looking statements, which may be based upon
beliefs, expectations and assumptions of the Company's management
and on information currently available to management, are generally
identifiable by the use of words such as "believe," "expect,"
"anticipate," "plan," "intend," "estimate," "may," "will," "would,"
"could," "should" or other similar expressions. Additionally, all
statements in this document, including forward-looking statements,
speak only as of the date they are made, and the Company undertakes
no obligation to update any statement in light of new information
or future events. A number of factors, many of which are beyond the
ability of the Company to control or predict, could cause actual
results to differ materially from those in its forward-looking
statements. These factors include, among others, the following: (i)
the strength of the local and national economy; (ii) the economic
impact of any future terrorist threats or attacks; (iii) changes in
state and federal laws, regulations and governmental policies
concerning the Company's general business; (iv) changes in interest
rates and prepayment rates of the Company's assets; (v) increased
competition in the financial services sector and the inability to
attract new customers; (vi) changes in technology and the ability
to develop and maintain secure and reliable electronic systems;
(vii) the loss of key executives or employees; (viii) changes in
consumer spending; (ix) unexpected results of acquisitions; (x)
unexpected outcomes of existing or new litigation involving the
Company; and (xi) changes in accounting policies and practices.
These risks and uncertainties should be considered in evaluating
forward-looking statements and undue reliance should not be placed
on such statements. Additional information concerning the Company
and its business, including additional factors that could
materially affect the Company's financial results, is included in
the Company's filings with the Securities and Exchange Commission.
Condensed Consolidated Balance Sheets (Unaudited, in thousands)
March 31, December 31, March 31, 2006 2005 2005 ASSETS Cash and
cash equivalents $53,353 $94,066 $94,265 Investments in debt and
equity securities 477,745 444,623 322,362 Mortgage loans held for
sale 1,696 1,661 577 Loans, net of allowance for loan losses
961,564 1,002,927 764,070 Premises and equipment 22,841 23,047
16,909 Goodwill 20,736 20,736 - Core deposit intangibles 4,351
4,569 - Accrued interest receivable 10,915 8,461 6,853 Other assets
28,168 25,047 19,602 Total assets $1,581,369 $1,625,137 $1,224,638
LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Deposits
$1,252,725 $1,275,972 $958,451 Federal funds purchased, repurchase
agreements and notes payable 115,346 118,452 108,818 Federal Home
Loan Bank advances and other borrowings 47,766 67,386 27,571
Accrued interest payable 4,510 4,657 2,889 Other liabilities 15,913
14,901 12,402 Total liabilities $1,436,260 $1,481,368 $1,110,131
Total shareholders' equity 145,109 143,769 114,507 Total
liabilities and shareholders' equity $1,581,369 $1,625,137
$1,224,638 Consolidated Statements of Income (Unaudited, in
thousands) Three Months Ended: March 31, December 31, March 31,
2006 2005 2005 Interest Income: Loans and fees on loans $16,795
$17,027 $11,405 Investments in debt and equity securities Taxable
4,106 3,196 2,364 Tax-exempt 330 360 401 Federal funds sold and
interest bearing deposits 297 771 221 Total interest income 21,528
21,354 14,391 Interest expense: Deposits 7,418 6,718 3,600 Federal
funds purchased, repurchase agreements and notes payable 1,151 969
507 Federal Home Loan Bank advances and other borrowings 681 808
386 Total interest expense 9,250 8,495 4,493 Net interest income
12,278 12,859 9,898 Provision for loan losses 450 450 330 Net
interest income after provision for loan losses 11,828 12,409 9,568
Non-interest income: Remittance processing 1,765 1,604 1,707 Trust
and brokerage fees 1,915 1,794 1,842 Service charges on deposit
accounts 685 794 526 Securities transactions, net 267 (136) 190
Gain on sales of mortgage loans, net 126 160 137 Other 761 890 613
Total non-interest income 5,519 5,106 5,015 Non-interest expense:
Salaries and employee benefits 5,921 5,774 4,947 Occupancy 792 781
662 Equipment 615 637 606 Data processing 738 747 551 Office
supplies 296 339 298 Amortization expense- core deposit intangibles
218 218 - Service charges from correspondent banks 64 124 110 Other
1,401 1,845 1,275 Total non-interest expense 10,045 10,465 8,449
Income before income taxes 7,302 7,050 6,134 Income taxes 2,612
2,553 2,201 Net income $4,690 $4,497 $3,933 DATASOURCE: Main Street
Trust, Inc. CONTACT: Van A. Dukeman, CFA, President and CEO of Main
Street Trust, Inc., +1-217-351-6568, or Web site:
http://www.mainstreettrust.com/
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