CHAMPAIGN, Ill., Jan. 29 /PRNewswire-FirstCall/ -- Main Street
Trust, Inc. (OTC:MSTI) (BULLETIN BOARD: MSTI) , reported
consolidated net income for the quarter ending December 31, 2006 of
$5.069 million compared to $4.497 million for the same period in
2005, an increase of 12.7%. Consolidated net income per diluted
share for the quarter ended December 31, 2006 totaled $0.50,
compared to $0.44 per diluted share for the same period in 2005, a
13.6% increase. The Company achieved a record $19.237 million in
consolidated net income for the year ending December 31, 2006,
compared to $18.308 million in 2005, an increase of 5.1%.
Consolidated net income per diluted share for the year ended
December 31, 2006 totaled $1.88 compared to $1.80 per diluted share
for the same period in 2005, an increase of 4.4%. Van A. Dukeman,
President and CEO stated that, "Loan quality continues to be good,
with net charge-offs at 0.08% of loans and non-performing loans at
0.82% of loans. The loan loss reserve to loans ended the year above
peer at 1.44%. Our retail payment processing subsidiary, FirsTech,
Inc., delivered a record $1.807 million in net income in 2006,
compared to last year's record $1.525 million, an increase of
18.5%. In addition, Main Street Wealth Management grew to over $2.3
billion in assets under management this year, and generated $8.235
million in trust and brokerage fee income, an increase of 8.4%. On
September 21, 2006, we announced a 'merger of equals' transaction
with First Busey Corporation. This combination is expected to
create a financial organization with total assets of approximately
$4.2 billion, serving customers in Central Illinois, Indianapolis
and Florida with approximately 60 full-service banking centers and
more than 120 ATM locations. We continue to be excited about the
future of the 'New Busey' organization." Dukeman further stated
that, "Record earnings, continued strong credit quality, and
strategic business transactions demonstrated once again in 2006 how
focused and determined we remain to executing our vision of
becoming THE respected and innovative leader in the financial
services industry." Cash Dividend Paid The Company distributed a
$0.25 per share cash dividend on January 26, 2007, payable to
shareholders of record on January 12, 2007. This is the first
quarterly cash dividend paid in 2007, and is an 8.7% increase over
the $0.23 per share paid in January 2006. Franchise Main Street
Trust, Inc. is a diversified financial services company with $1.5
billion in assets as of December 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 $2.3
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. Condensed Consolidated Balance Sheets
(Unaudited, in thousands) December September December 31, 30, 31,
2006 2006 2005 ASSETS Cash and cash equivalents $61,385 $59,309
$94,066 Investments in debt and equity securities 402,695 431,222
444,623 Mortgage loans held for sale 1,116 1,912 1,661 Loans, net
of allowance for loan losses 987,485 980,499 1,002,927 Premises and
equipment 22,447 22,402 23,047 Goodwill 20,736 20,736 20,736 Core
deposit intangibles 3,698 3,916 4,569 Accrued interest receivable
9,663 11,359 8,461 Other assets 27,376 26,795 25,047 Total assets
$1,536,601 $1,558,150 $1,625,137 LIABILITIES AND SHAREHOLDERS'
EQUITY Liabilities: Deposits $1,233,487 $1,251,147 $1,275,972
Federal funds purchased, repurchase agreements and notes payable
108,323 110,956 118,452 Federal Home Loan Bank advances and other
borrowings 24,477 29,574 67,386 Accrued interest payable 5,187
4,893 4,657 Other liabilities 14,772 13,377 14,901 Total
liabilities $1,386,246 $1,409,947 $1,481,368 Total shareholders'
equity 150,355 148,203 143,769 Total liabilities and shareholders'
equity $1,536,601 $1,558,150 $1,625,137 Consolidated Statements of
Income (Unaudited, in thousands) Quarter Twelve Months Ended:
Ended: December December December December 31, 2006 31, 2005 31,
2006 31, 2005 Interest Income: Loans and fees on loans $18,300
$17,027 $70,507 $60,988 Investments in debt and equity securities
Taxable 4,421 3,196 17,742 12,465 Tax-exempt 277 360 1,183 1,516
Federal funds sold and interest bearing deposits 362 771 1,327
2,023 Total interest income 23,360 21,354 90,759 76,992 Interest
expense: Deposits 9,166 6,718 33,555 21,589 Federal funds
purchased, repurchase agreements and notes payable 1,467 969 5,531
3,097 Federal Home Loan Bank advances and other borrowings 380 808
2,126 2,793 Total interest expense 11,013 8,495 41,212 27,479 Net
interest income 12,347 12,859 49,547 49,513 Provision for loan
losses 450 450 1,800 1,530 Net interest income after provision for
loan losses 11,897 12,409 47,747 47,983 Non-interest income:
Remittance processing 1,940 1,604 7,306 6,748 Trust and brokerage
fees 2,291 1,794 8,235 7,599 Service charges on deposit accounts
658 794 2,719 2,923 Securities transactions, net 177 (136) 456
(586) Gain on sales of mortgage loans, net 154 160 596 886 Other
851 890 3,271 2,907 Total non-interest income 6,071 5,106 22,583
20,477 Non-interest expense: Salaries and employee benefits 5,879
5,774 23,572 23,099 Occupancy 727 781 3,049 3,074 Equipment 651 637
2,513 2,592 Data processing 892 747 3,170 2,416 Office supplies 356
339 1,248 1,245 Amortization expense- core deposit intangibles 217
218 870 653 Service charges from correspondent banks 70 124 284 513
Other 1,387 1,845 6,242 6,187 Total non-interest expense 10,179
10,465 40,948 39,779 Income before income taxes 7,789 7,050 29,382
28,681 Income taxes 2,720 2,553 10,145 10,373 Net income $5,069
$4,497 $19,237 $18,308 SELECTED FINANCIAL HIGHLIGHTS (dollars in
thousands, except share data) Three Months Ended Twelve Months
Ended Dec. 31, Sept. 30, Dec. 31, Dec. 31, Dec. 31, 2006 2006 2005
2006 2005 EARNINGS & PER SHARE DATA Basic earnings per share
$0.51 $0.46 $0.44 $1.91 $1.82 Weighted average shares of common
stock outstanding 10,033,891 10,076,548 10,197,424 10,094,433
10,060,032 Diluted earnings per share $0.50 $0.46 $0.44 $1.88 $1.80
Weighted average shares of common stock and dilutive potential
common shares outstanding 10,204,738 10,189,861 10,294,786
10,222,543 10,157,409 Market price per share at period end(1)
$35.25 $34.45 $29.85 $35.25 $29.85 Price to book ratio(1) 235.00%
233.56% 210.66% 235.00% 210.66% Price to earnings ratio(1,2) 18.46
18.83 16.40 18.46 16.40 Cash dividends paid per share $0.23 $0.23
$0.22 $0.92 $0.88 Cash dividends declared per share $0.25 $0.23
$0.23 $0.94 $0.89 Book value per share $15.00 $14.75 $14.17 $15.00
$14.17 Tangible book value per share(3) $12.71 $12.45 $11.68 $12.71
$11.68 Ending number of common shares outstanding 10,022,369
10,046,079 10,146,675 10,022,369 10,146,675 AVERAGE BALANCES Assets
$1,545,864 $1,551,348 $1,593,509 $1,569,684 $1,474,691 Investment
securities 413,929 442,387 389,215 448,396 366,127 Gross loans(4)
999,972 982,152 1,025,537 988,980 957,824 Earning assets 1,420,052
1,423,770 1,470,756 1,442,780 1,360,236 Deposits 1,233,281
1,229,713 1,243,489 1,238,918 1,147,426 Interest bearing
liabilities 1,164,188 1,171,468 1,222,910 1,187,942 1,118,939
Common shareholders' equity 149,496 146,880 144,286 146,844 136,621
END OF PERIOD FINANCIAL DATA Tax equivalized net interest income
$12,497 $12,680 $13,057 $50,200 $50,344 Gross loans(4) 1,003,038
996,644 1,018,060 1,003,038 1,018,060 Allowance for loan losses
14,437 14,233 13,472 14,437 13,472 Total assets under management
2,345,203 2,332,516 1,959,495 2,345,203 1,959,495 PERFORMANCE
RATIOS Return on average assets(5) 1.30% 1.20% 1.12% 1.23% 1.24%
Return on average equity(5) 13.45% 12.64% 12.37% 13.10% 13.40% Net
yield on average earning assets(5,6) 3.49% 3.53% 3.52% 3.48% 3.70%
Interest spread(5,6) 2.82% 2.89% 3.05% 2.87% 3.26% Net overhead
efficiency ratio(6,7) 55.35% 57.36% 57.19% 56.62% 55.71%
Non-interest revenues as a % of total revenues(7,8) 32.31% 30.47%
28.96% 30.87% 29.84% Allowance for loan losses to loans 1.44% 1.43%
1.32% 1.44% 1.32% Allowance as a percentage of non-performing loans
175.78% 167.86% 449.07% 175.78% 449.07% Average loan to deposit
ratio 81.08% 79.87% 82.47% 79.83% 83.48% Dividend payout ratio(2)
49.21% 50.27% 48.90% 49.21% 48.90% ASSET QUALITY Net charge-offs
$246 $112 $666 $835 $1,142 Non-performing loans 8,213 8,479 3,000
8,213 3,000 Other non- performing assets 177 231 224 177 224 (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, including the
merger with First Busey Corporation; (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. DATASOURCE: Main Street Trust,
Inc. CONTACT: Van A. Dukeman, President-CEO of Main Street Trust,
Inc., +1-217-351-6568, or fax, +1-217-351-6651 Web site:
http://www.mainstreettrust.com/
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