Main Street Trust Announces 27% Increase in Second Quarter 2005 Net
Income CHAMPAIGN, Ill., July 25 /PRNewswire-FirstCall/ -- Main
Street Trust, Inc. (OTC:MSTI) (BULLETIN BOARD: MSTI) reported
consolidated net income for the quarter of $4.727 million compared
to $3.718 million for the same period in 2004, an increase of
27.1%. For the quarter ending June 30, 2005, earnings per share on
a fully-diluted basis were $0.45 compared to $0.39 per diluted
share for the same period in 2004, an increase of 15.4%.
Year-to-date net income was $8.660 million compared to $7.661
million in 2004, an increase of 13.0%. Year-to-date earnings per
share on a fully-diluted basis were $0.87, an increase of 8.8% from
$0.80 for the comparable period in 2004. Van A. Dukeman, President
and CEO stated that, "The Company's acquisition of Citizens First
Financial Corp. (approximately $329 million in total assets)
headquartered in Bloomington, Illinois highlighted the second
quarter. Total banking assets for MSTI have now grown to more than
$1.5 billion as a result of this purchase." Dukeman further stated
that, "Conversion plans are set to integrate our Bloomington
customer base into the Main Street Bank & Trust organization in
the fourth quarter of this year. That process has already begun
with alignment of the Citizens and Main Street banking products.
"Main Street's 10-year strategic growth plan calls for expansion
into additional Downstate markets. The Citizens transaction has
contributed to the expansion of our footprint. Main Street has
economic centers in Champaign- Urbana, Bloomington-Normal, Peoria
and Decatur. Our customers now have 23 banking facilities in
Downstate Illinois to conduct their financial business. We will
continue to enhance current and build new multi-faceted customer
relationships in these economic centers through trust, knowledge,
and service." Cash Dividend Paid The Company distributed a $0.22
per share cash dividend on July 22, 2005, payable to shareholders
of record on July 8, 2005. This is the third quarterly cash
dividend paid in 2005; making total dividends paid to-date $0.66
per share for 2005, compared to $0.63 per share for the same period
in 2004. Franchise Main Street Trust, Inc. is a diversified
financial services company with $1.52 billion in assets as of June
30, 2005, 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 $1.8 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 nearly 30 million items per year. Special
Note Concerning Forward-Looking Statements This press release may
contain forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Forward- looking
statements, which may be based upon beliefs, expectations and
assumptions of Main Street'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 Main Street does not undertake any
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 Main Street 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 its general business; (iv) changes in interest rates and
prepayment rates of its 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 Main Street; 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 Main Street, its
businesses and factors that could materially affect its financial
results, is included in its filings with the Securities and
Exchange Commission. Special Note Concerning Goodwill and Other
Intangible Assets The Citizens excess purchase price has been
allocated to goodwill and identifiable intangible assets in
accordance with current accounting literature, to the extent that
supportable documentation was available at June 30, 2005. Such
amounts are subject to minor adjustments in the near term as
additional analysis is performed or obtained from third party
sources. SELECTED FINANCIAL HIGHLIGHTS (dollars in thousands,
except share data) Three Months Ended Six Months Ended June 30,
June 30, Mar. 31, June 30, June 30, 2005 2004 2005 2005 2004
EARNINGS & PER SHARE DATA Basic earnings per share $0.46 $0.39
$0.42 $0.88 $0.81 Weighted average shares of common stock
outstanding 10,341,054 9,505,500 9,453,196 9,897,125 9,507,493
Diluted earnings per share $0.45 $0.39 $0.41 $0.87 $0.80 Weighted
average shares of common stock and dilutive potential common shares
outstanding 10,438,479 9,619,707 9,554,697 9,996,574 9,625,020
Market price per share at period end(1) $28.75 $30.90 $29.60 $28.75
$30.90 Price to book ratio(1) 206.39% 262.09% 244.63% 206.39%
262.09% Price to earnings ratio(1,2) 17.53 19.07 18.85 17.53 19.07
Cash dividends paid per share $0.22 $0.21 $0.22 $0.44 $0.42 Cash
dividends declared per share $0.22 $0.21 $0.22 $0.44 $0.42 Book
value per share $13.93 $11.79 $12.10 $13.93 $11.79 Tangible book
value per share(3) $11.42 $11.78 $12.10 $11.42 $11.78 Ending number
of common shares outstanding 10,276,275 9,473,116 9,460,870
10,276,275 9,473,116 AVERAGE BALANCES Assets $1,549,521 $1,197,343
$1,218,171 $1,383,846 $1,184,271 Investment securities 314,511
389,655 346,215 330,363 373,558 Gross loans(4) 1,013,451 707,694
771,499 892,475 702,131 Earning assets 1,371,044 1,111,743
1,137,086 1,254,065 1,098,200 Deposits 1,200,104 948,490 958,418
1,079,261 929,500 Interest bearing liabilities 1,181,084 908,703
909,268 1,045,176 895,560 Common shareholders' equity 143,733
112,809 114,639 129,186 112,935 END OF PERIOD FINANCIAL DATA Tax
equivalized net interest income $13,400 $9,505 $10,117 $23,517
$19,277 Gross loans(4) 1,026,591 717,591 774,602 1,026,591 717,591
Allowance for loan losses 13,628 10,084 9,955 13,628 10,084 Total
assets under management 1,801,705 1,614,771 1,751,352 1,801,705
1,614,771 PERFORMANCE RATIOS Return on average assets(5) 1.22%
1.25% 1.31% 1.26% 1.30% Return on average equity(5) 13.19% 13.26%
13.91% 13.52% 13.64% Net yield on average earning assets(5,6) 3.92%
3.44% 3.61% 3.78% 3.53% Interest spread (5,6) 3.59% 3.11% 3.21%
3.41% 3.21% Net overhead efficiency ratio(6,7) 56.70% 56.67% 56.55%
56.63% 55.81% Non-interest revenues as a % of total revenues(7,8)
28.33% 35.88% 32.77% 30.30% 35.49% Allowance for loan losses to
loans 1.33% 1.41% 1.29% 1.33% 1.41% Allowance as a percentage of
non-performing loans 360.15% 367.76% 401.90% 360.15% 367.76%
Average loan to deposit ratio 84.45% 74.61% 80.50% 82.69% 75.54%
Dividend payout ratio(2) 53.05% 51.23% 54.78% 53.05% 51.23% ASSET
QUALITY Net charge-offs $61 $197 $25 $86 $362 Non-performing loans
3,784 2,742 2,477 3,784 2,742 Other non-performing assets 168 126
140 168 126 (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
Condensed Consolidated Balance Sheets (Unaudited, in thousands)
June 30, March 31, December 31, June 30, 2005 2005 2004 2004 ASSETS
Cash and cash equivalents $55,873 $94,265 $64,928 $57,847
Investments in debt and equity securities 364,246 322,362 358,726
385,373 Mortgage loans held for sale 2,768 577 1,005 890 Loans, net
of allowance for loan losses 1,010,195 764,070 761,227 706,617
Premises and equipment 22,579 16,909 17,087 16,966 Goodwill 20,819
- - - Core deposit intangibles 5,004 - - - Accrued interest
receivable 8,770 6,853 6,570 6,615 Other assets 25,548 19,602
18,575 20,369 Total assets $1,515,802 $1,224,638 $1,228,118
$1,194,677 LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities:
Deposits $1,144,164 $958,451 $974,577 $959,424 Federal funds
purchased, repurchase agreements and notes payable 121,854 108,818
96,900 82,144 Federal Home Loan Bank advances and other borrowings
89,077 27,571 29,882 29,920 Accrued interest payable 3,471 2,889
2,601 1,987 Other liabilities 14,073 12,402 10,183 9,509 Total
liabilities $1,372,639 $1,110,131 $1,114,143 $1,082,984 Total
shareholders' equity 143,163 114,507 113,975 111,693 Total
liabilities and shareholders' equity $1,515,802 $1,224,638
$1,228,118 $1,194,677 Consolidated Statements of Income (Unaudited,
in thousands) Quarter Ended: Six Months Ended: June 30, June 30,
June 30, June 30, 2005 2004 2005 2004 Interest Income: Loans and
fees on loans $15,913 $10,013 $27,318 $20,064 Investments in debt
and equity securities Taxable 3,241 2,699 5,605 5,413 Tax-exempt
385 476 786 979 Federal funds sold and interest bearing deposits
592 75 813 188 Total interest income 20,131 13,263 34,522 26,644
Interest expense: Deposits 5,403 3,344 9,003 6,546 Federal funds
purchased, repurchase agreements and notes payable 751 276 1,258
557 Federal Home Loan Bank advances and other borrowings 787 398
1,173 797 Total interest expense 6,941 4,018 11,434 7,900 Net
interest income 13,190 9,245 23,088 18,744 Provision for loan
losses 300 330 630 660 Net interest income after provision for loan
losses 12,890 8,915 22,458 18,084 Non-interest income: Remittance
processing 1,696 1,923 3,403 3,815 Trust and brokerage fees 1,810
1,625 3,652 3,287 Service charges on deposit accounts 783 622 1,309
1,201 Securities transactions, net (155) (2) 35 6 Gain on sales of
mortgage loans, net 260 345 397 548 Other 664 659 1,277 1,462 Total
non-interest income 5,058 5,172 10,073 10,319 Non-interest expense:
Salaries and employee benefits 6,281 4,543 11,228 9,251 Occupancy
807 638 1,469 1,283 Equipment 675 647 1,281 1,280 Data processing
552 555 1,103 1,087 Office supplies 289 312 587 617 Amortization
expense- core deposit intangibles 218 - 218 - Service charges from
correspondent banks 145 233 255 458 Other 1,587 1,390 2,862 2,539
Total non-interest expense 10,554 8,318 19,003 16,515 Income before
income taxes 7,394 5,769 13,528 11,888 Income taxes 2,667 2,051
4,868 4,227 Net income $4,727 $3,718 $8,660 $7,661 DATASOURCE: Main
Street Trust, Inc. CONTACT: Van A. Dukeman, President-CEO of Main
Street Trust, Inc., +1-217-351-6568, Fax: +1-217-351-6651 Web site:
http://www.mainstreettrust.com/
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