CHAMPAIGN, Ill., April 24 /PRNewswire-FirstCall/ -- Main Street
Trust, Inc. (OTC:MSTI) (BULLETIN BOARD: MSTI) , reported
consolidated net income for the quarter ended March 31, 2007 of
$4.774 million compared to $4.690 million for the same period in
2006, an increase of 1.8%. Consolidated net income per diluted
share for the quarter ended March 31, 2007 totaled $0.47, compared
to $0.46 per diluted share for the same period in 2006, a 2.2%
increase. Van A. Dukeman, President and CEO stated that, "Main
Street's earnings performance this quarter was enhanced by strong
loan growth in our commercial portfolio, including commercial real
estate, which topped $811 million for the first time in history.
Total loan interest income increased 7.2% compared to the first
quarter of 2006. Additional performance highlights this quarter
included our Wealth Management Division, which recorded quarterly
revenues in excess of $2 million, an increase of 12.7% compared to
the same period in 2006. Our retail payment processing subsidiary,
FirsTech, also posted another strong quarter of earnings as it
gears up to expand into the St. Louis area in April." Dukeman
further stated that, "These results continue to demonstrate our
focus on execution during a period of transition in our company
following the announcement of a "merger of equals" transaction with
First Busey Corporation on September 21, 2006. Subject to
regulatory approval, we continue to anticipate closing in the
second quarter of 2007. A major step forward in the approval
process was taken this quarter when shareholders of both Main
Street Trust, Inc. and First Busey Corporation approved the
transaction." Cash Dividend Paid The Company distributed a $0.25
per share cash dividend on April 20, 2007, payable to shareholders
of record on April 1, 2007. This is the second quarterly cash
dividend paid in 2007, bringing total dividends paid to-date to
$0.50 per share, an 8.70% increase over the $0.46 per share for the
same period in 2006. Franchise Main Street Trust, Inc. is a
diversified financial services company with $1.5 billion in assets
as of March 31, 2007, 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) March 31,
December 31, March 31, 2007 2006 2006 ASSETS Cash and cash
equivalents $48,830 $61,385 $53,353 Investments in debt and equity
securities 396,442 402,695 477,745 Mortgage loans held for sale
1,690 1,116 1,696 Loans, net of allowance for loan losses 995,353
987,485 961,564 Premises and equipment 23,655 22,447 22,841
Goodwill 20,736 20,736 20,736 Core deposit intangibles 3,481 3,698
4,351 Accrued interest receivable 11,674 9,663 10,915 Other assets
27,178 27,376 28,168 Total assets $1,529,039 $1,536,601 $1,581,369
LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Deposits
$1,242,775 $1,233,487 $1,252,725 Federal funds purchased and
repurchase agreements 95,056 108,323 115,346 Federal Home Loan Bank
advances and other borrowings 18,023 24,477 47,766 Accrued interest
payable 4,849 5,187 4,510 Other liabilities 14,829 14,772 15,913
Total liabilities $1,375,532 $1,386,246 $1,436,260 Total
shareholders' equity 153,507 150,355 145,109 Total liabilities and
shareholders' equity $1,529,039 $1,536,601 $1,581,369 Consolidated
Statements of Income (Unaudited, in thousands) Three Months Ended:
March 31, December 31, March 31, 2007 2006 2006 Interest Income:
Loans and fees on loans $18,004 $18,300 $16,795 Investments in debt
and equity securities Taxable 4,362 4,421 4,106 Tax-exempt 241 277
330 Federal funds sold and interest bearing deposits 248 362 297
Total interest income 22,855 23,360 21,528 Interest expense:
Deposits 9,262 9,166 7,418 Federal funds purchased and repurchase
agreements 1,293 1,467 1,151 Federal Home Loan Bank advances and
other borrowings 287 380 681 Total interest expense 10,842 11,013
9,250 Net interest income 12,013 12,347 12,278 Provision for loan
losses 600 450 450 Net interest income after provision for loan
losses 11,413 11,897 11,828 Non-interest income: Remittance
processing 2,279 1,940 1,765 Trust and brokerage fees 2,158 2,291
1,915 Service charges on deposit accounts 564 658 685 Securities
transactions, net (231) 177 267 Gain on sales of mortgage loans,
net 102 154 126 Other 771 851 761 Total non-interest income 5,643
6,071 5,519 Non-interest expense: Salaries and employee benefits
5,995 5,879 5,921 Occupancy 794 727 792 Equipment 681 651 615 Data
processing 909 892 738 Office supplies 301 356 296 Amortization
expense - core deposit intangibles 218 217 218 Service charges from
correspondent banks 78 70 64 Other 1,366 1,387 1,401 Total
non-interest expense 10,342 10,179 10,045 Income before income
taxes 6,714 7,789 7,302 Income taxes 1,940 2,720 2,612 Net income
$4,774 $5,069 $4,690 SELECTED FINANCIAL HIGHLIGHTS (dollars in
thousands, except share data) Three Months Ended Mar. 31, Dec. 31,
Mar. 31, 2007 2006 2006 EARNINGS & PER SHARE DATA Basic
earnings per share $0.48 $0.51 $0.46 Weighted average shares of
common stock outstanding 10,029,580 10,033,891 10,141,775 Diluted
earnings per share $0.47 $0.50 $0.46 Weighted average shares of
common stock and dilutive potential common shares outstanding
10,191,282 10,204,738 10,264,692 Market price per share at period
end(1) $33.00 $35.25 $30.75 Price to book ratio(1) 215.83% 235.00%
214.73% Price to earnings ratio(1,2) 17.19 18.46 16.53 Cash
dividends paid per share 0.25 0.23 0.23 Cash dividends declared per
share 0.25 0.25 0.23 Book value per share $15.29 $15.00 $14.32
Tangible book value per share(3) $13.02 $12.71 $12.02 Ending number
of common shares outstanding 10,039,138 10,022,369 10,132,875
AVERAGE BALANCES Assets $1,539,134 $1,545,864 $1,595,112 Investment
securities 406,395 413,929 469,692 Gross loans(4) 1,004,700 999,972
990,736 Earning assets 1,408,517 1,420,052 1,466,802 Deposits
1,241,315 1,233,281 1,249,953 Interest bearing liabilities
1,147,365 1,164,188 1,208,799 Common shareholders' equity 151,964
149,496 144,877 END OF PERIOD FINANCIAL DATA Tax equivalized net
interest income $12,144 $12,497 $12,461 Gross loans(4) 1,010,774
1,003,038 976,859 Allowance for loan losses 13,731 14,437 13,599
Total assets under management 2,297,029 2,345,203 2,185,360
PERFORMANCE RATIOS Return on average assets(5) 1.26% 1.30% 1.19%
Return on average equity(5) 12.74% 13.45% 13.13% Net yield on
average earning assets(5,6) 3.50% 3.49% 3.45% Interest spread(5,6)
2.79% 2.82% 2.90% Net overhead efficiency ratio(6,7) 57.40% 55.35%
56.71% Non-interest revenues as a % of total revenues(7,8) 32.84%
32.31% 29.96% Allowance for loan losses to loans 1.36% 1.44% 1.39%
Allowance as a percentage of non-performing loans 161.37% 175.78%
176.08% Average loan to deposit ratio 80.94% 81.08% 79.26% Dividend
payout ratio(2) 50.00% 49.21% 48.39% ASSET QUALITY Net charge-offs
$1,306 $246 $323 Non-performing loans 8,509 8,213 7,723 Other
non-performing assets 99 177 804 (1) Closing price at end of period
(5) Annualized (2) Last 12-months earnings (6) On a fully tax-
equivalized basis (3) Net of goodwill and core-deposit (7) Does not
include intangibles securities gains/losses (4) Loans include
mortgage loans held for sale and nonaccrual loans (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 mergers or
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, FAX:
+1-217-351-6651 Web site: http://www.mainstreettrust.com/
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