CHAMPAIGN, Ill., July 25 /PRNewswire-FirstCall/ -- Main Street
Trust, Inc. (OTC:MSTI) (BULLETIN BOARD: MSTI) reported strong
earnings, posting $0.47 in unaudited consolidated net income per
diluted share for the quarter ended June 30, 2006, compared to
$0.45 per diluted share for the same period in 2005, an increase of
4.44%. Consolidated net income for the quarter totaled $4.799
million compared to $4.727 million for the same period in 2005, an
increase of 1.52%. Year-to-date net income was $9.489 million
compared to $8.660 million in 2005, an increase of 9.57%.
Year-to-date earnings per share on a fully-diluted basis were
$0.93, an increase of 6.90% from $0.87 for the comparable period in
2005. Van A. Dukeman, President and CEO stated that, "We are
encouraged by the progress made in developing our first two banking
center prototype facilities in Normal and Peoria, IL. Both projects
are expected to break ground in the third quarter. Our focus on
customer service this quarter was enhanced by a series of focus
group sessions conducted with Wealth Management customers, and our
Executive Team re-committed itself to integrating the principles
embedded in our Service Plus training program into all phases of
the customer experience. We expect to not only deliver continued
value in our client relationships, but also sustainable franchise
growth by fostering a culture based on our core attributes: Trust,
Knowledge and Service." Dukeman further stated that, "Another
important component of our Company is the financial performance and
strategic direction at FirsTech, our payment processing subsidiary
headquartered in Decatur. This subsidiary posted solid financial
results during the second quarter, while also laying the groundwork
for a major expansion and new opportunities in the St. Louis
market." Cash Dividend Paid The Company distributed a $0.23 per
share cash dividend on July 21, 2006, payable to shareholders of
record on July 7, 2006. This is the third quarterly cash dividend
paid in 2006; making total dividends paid to-date $0.69 per share
for 2006, compared to $0.66 per share for the same period in 2005.
Franchise Main Street Trust, Inc. is a diversified financial
services company with $1.56 billion in assets as of June 30, 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 $2.18 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 Six Months Ended June 30, Mar. 31, June 30, June
30, June 30, 2006 2006 2005 2006 2005 EARNINGS & PER SHARE DATA
Basic earnings per share $0.47 $0.46 $0.46 $0.94 $0.88 Weighted
average shares of common stock outstanding 10,125,520 10,141,775
10,341,054 10,133,648 9,897,125 Diluted earnings per share $0.47
$0.46 $0.45 $0.93 $0.87 Weighted average shares of common stock and
dilutive potential common shares outstanding 10,247,920 10,264,692
10,438,479 10,255,595 9,996,574 Market price per share at period
end(1) $30.50 $30.75 $28.75 $30.50 $28.75 Price to book ratio(1)
210.93% 214.73% 206.39% 210.93% 206.39% Price to earnings
ratio(1,2) 16.31 16.53 17.53 16.31 17.53 Cash dividends paid per
share 0.23 0.23 0.22 0.46 0.44 Cash dividends declared per share
0.23 0.23 0.22 0.46 0.44 Book value per share $14.46 $14.32 $13.93
$14.46 $13.93 Tangible book value per share(3) $12.16 $12.02 $11.42
$12.16 $11.42 Ending number of common shares outstanding 10,099,281
10,132,875 10,276,275 10,099,281 10,276,275 AVERAGE BALANCES Assets
$1,586,412 $1,595,112 $1,549,521 $1,590,762 $1,383,846 Investment
securities 467,576 469,692 369,047 468,634 357,631 Gross loans(4)
983,060 990,736 1,013,451 986,898 892,475 Earning assets 1,460,496
1,466,802 1,425,580 1,463,649 1,281,333 Deposits 1,242,725
1,249,953 1,200,104 1,246,339 1,079,261 Interest bearing
liabilities 1,207,313 1,208,799 1,181,084 1,208,056 1,045,176
Common shareholders' equity 146,123 144,877 143,733 145,500 129,186
END OF PERIOD FINANCIAL DATA Tax equivalized net interest income
$12,562 $12,461 $13,400 $25,023 $23,517 Gross loans(4) 989,176
976,859 1,026,591 989,176 1,026,591 Allowance for loan losses
13,895 13,599 13,628 13,895 13,628 Total assets under management
2,184,056 2,185,360 1,959,495 2,184,056 1,959,495 PERFORMANCE
RATIOS Return on average assets(5) 1.21% 1.19% 1.22% 1.20% 1.26%
Return on average equity(5) 13.17% 13.13% 13.19% 13.15% 13.52% Net
yield on average earning assets(5,6) 3.45% 3.45% 3.77% 3.45% 3.70%
Interest spread(5,6) 2.86% 2.90% 3.36% 2.88% 3.29% Net overhead
efficiency ratio(6,7) 57.06% 56.71% 56.70% 56.89% 56.63%
Non-interest revenues as a % of total revenues(7,8) 30.70% 29.96%
28.33% 30.33% 30.30% Allowance for loan losses to loans 1.40% 1.39%
1.33% 1.40% 1.33% Allowance as a percentage of non-performing loans
169.82% 176.08% 360.15% 169.82% 360.15% Average loan to deposit
ratio 79.11% 79.26% 84.45% 79.18% 82.69% Dividend payout ratio(2)
48.66% 48.39% 53.05% 48.66% 53.05% ASSET QUALITY Net charge-offs
$154 $323 $61 $477 $86 Non-performing loans 8,182 7,723 3,784 8,182
3,784 Other non-performing assets 443 804 168 443 168 (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) June 30,
March 31, December 31, June 30, 2006 2006 2005 2005 ASSETS Cash and
cash equivalents $46,590 $53,353 $94,066 $55,873 Investments in
debt and equity securities 451,151 477,745 444,623 364,246 Mortgage
loans held for sale 2,064 1,696 1,661 2,768 Loans, net of allowance
for loan losses 973,217 961,564 1,002,927 1,010,195 Premises and
equipment 22,707 22,841 23,047 22,579 Goodwill 20,736 20,736 20,736
20,819 Core deposit intangibles 4,134 4,351 4,569 5,004 Accrued
interest receivable 9,476 10,915 8,461 8,770 Other assets 26,069
28,168 25,047 25,548 Total assets $1,556,144 $1,581,369 $1,625,137
$1,515,802 LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities:
Deposits $1,205,731 $1,252,725 $1,275,972 $1,144,164 Federal funds
purchased, repurchase agreements and notes payable 141,716 115,346
118,452 121,854 Federal Home Loan Bank advances and other
borrowings 44,670 47,766 67,386 89,077 Accrued interest payable
4,604 4,510 4,657 3,471 Other liabilities 13,422 15,913 14,901
14,073 Total liabilities $1,410,143 $1,436,260 $1,481,368
$1,372,639 Total shareholders' equity 146,001 145,109 143,769
143,163 Total liabilities and shareholders' equity $1,556,144
$1,581,369 $1,625,137 $1,515,802 Consolidated Statements of Income
(Unaudited, in thousands) Quarter Ended: Six Months Ended: June 30,
June 30, June 30, June 30, 2006 2005 2006 2005 Interest Income:
Loans and fees on loans $17,356 $15,913 $34,151 $27,318 Investments
in debt and equity securities Taxable 4,580 3,241 8,686 5,605
Tax-exempt 292 385 622 786 Federal funds sold and interest bearing
deposits 400 592 697 813 Total interest income 22,628 20,131 44,156
34,522 Interest expense: Deposits 8,202 5,403 15,620 9,003 Federal
funds purchased, repurchase agreements and notes payable 1,446 751
2,597 1,258 Federal Home Loan Bank advances and other borrowings
581 787 1,262 1,173 Total interest expense 10,229 6,941 19,479
11,434 Net interest income 12,399 13,190 24,677 23,088 Provision
for loan losses 450 300 900 630 Net interest income after provision
for loan losses 11,949 12,890 23,777 22,458 Non-interest income:
Remittance processing 1,738 1,696 3,503 3,403 Trust and brokerage
fees 1,987 1,810 3,902 3,652 Service charges on deposit accounts
706 783 1,391 1,309 Securities transactions, net 12 (155) 279 35
Gain on sales of mortgage loans, net 150 260 276 397 Other 912 664
1,673 1,277 Total non-interest income 5,505 5,058 11,024 10,073
Non-interest expense: Salaries and employee benefits 5,764 6,281
11,685 11,228 Occupancy 783 807 1,575 1,469 Equipment 628 675 1,243
1,281 Data processing 719 552 1,457 1,103 Office supplies 301 289
597 587 Amortization expense- core deposit intangibles 217 218 435
218 Service charges from correspondent banks 82 145 146 255 Other
1,808 1,587 3,209 2,862 Total non-interest expense 10,302 10,554
20,347 19,003 Income before income taxes 7,152 7,394 14,454 13,528
Income taxes 2,353 2,667 4,965 4,868 Net income $4,799 $4,727
$9,489 $8,660 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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