CHAMPAIGN, Ill., July 20 /PRNewswire-FirstCall/ -- Main Street
Trust, Inc. (OTC:MSTI) (BULLETIN BOARD: MSTI) , reported
consolidated net income for the quarter of $4.932 million compared
to $4.799 million for the same period in 2006, an increase of 2.8%.
Consolidated net income per diluted share for the quarter ended
June 30, 2007 totaled $0.49, compared to $0.47 per diluted share
for the same period in 2006, a 4.3% increase. Van A. Dukeman,
President and CEO stated that, "The Company's performance this
quarter was enhanced by continued growth in our commercial loan
portfolio, including commercial real estate, which exceeded $816
million. Total loan interest income increased 6.9% compared to the
second quarter of 2006. Additional performance highlights came from
FirsTech, which increased revenue 15.7% compared to the second
quarter of 2006. Following the opening of their new office in St.
Louis in April, FirsTech continued its penetration of that market
by securing new account relationships for its proprietary internet
agent payment product." Dukeman further stated that, "Main Street's
merger of equals with First Busey Corporation recently received
approvals from regulatory authorities. The final approval is
subject to the successful divestiture of five Champaign County,
Illinois branches of Main Street Bank & Trust. This divestiture
represents approximately $15 million in loans and $110 million in
deposits, which is less than 1% of the anticipated combined loans
and approximately 3% of anticipated combined deposits following the
merger. The expected merger date of the holding companies will be
following the close of business on July 31, 2007, with the merger
of Busey Bank and Main Street Bank & Trust anticipated to occur
in the fourth quarter of 2007." Cash Dividend Paid The Company
distributed a $0.25 per share cash dividend on July 20, 2007,
payable to shareholders of record on June 30, 2007. This is the
third quarterly cash dividend paid in 2007, bringing total
dividends paid to-date to $0.75 per share, an 8.7% increase over
the $0.69 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 June 30, 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 120 locations throughout
Illinois. In addition, Main Street Wealth Management has $2.2
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) June 30, March 31, December 31, June 30,
2007 2007 2006 2006 ASSETS Cash and cash equivalents $98,821
$48,830 $61,385 $46,590 Investments in debt and equity securities
350,281 396,442 402,695 451,151 Mortgage loans held for sale 3,010
1,690 1,116 2,064 Loans, net of allowance for loan losses 996,957
995,353 987,485 973,217 Premises and equipment 24,319 23,655 22,447
22,707 Goodwill 20,736 20,736 20,736 20,736 Core deposit
intangibles 3,263 3,481 3,698 4,134 Accrued interest receivable
9,357 11,674 9,663 9,476 Other assets 27,623 27,178 27,376 26,069
Total assets $1,534,367 $1,529,039 $1,536,601 $1,556,144
LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Deposits
$1,257,921 $1,242,775 $1,233,487 $1,205,731 Federal funds purchased
and repurchase agreements 89,632 95,056 108,323 141,716 Federal
Home Loan Bank advances and other borrowings 13,023 18,023 24,477
44,670 Accrued interest payable 4,847 4,849 5,187 4,604 Other
liabilities 13,032 14,829 14,772 13,422 Total liabilities
$1,378,455 $1,375,532 $1,386,246 $1,410,143 Total shareholders'
equity 155,912 153,507 150,355 146,001 Total liabilities and
shareholders' equity $1,534,367 $1,529,039 $1,536,601 $1,556,144
Consolidated Statements of Income (Unaudited, in thousands) Quarter
Ended: Six Months Ended: June 30, June 30, June 30, June 30, 2007
2006 2007 2006 Interest Income: Loans and fees on loans $18,549
$17,356 $36,553 $34,151 Investments in debt and equity securities
Taxable 4,186 4,580 8,548 8,686 Tax-exempt 235 292 476 622 Federal
funds sold and interest bearing deposits 473 400 721 697 Total
interest income 23,443 22,628 46,298 44,156 Interest expense:
Deposits 9,628 8,202 18,890 15,620 Federal funds purchased and
repurchase agreements 1,097 1,446 2,390 2,597 Federal Home Loan
Bank advances and other borrowings 240 581 527 1,262 Total interest
expense 10,965 10,229 21,807 19,479 Net interest income 12,478
12,399 24,491 24,677 Provision for loan losses 450 450 1,050 900
Net interest income after provision for loan losses 12,028 11,949
23,441 23,777 Non-interest income: Retail payment processing 2,402
1,738 4,681 3,503 Trust and brokerage fees 2,238 1,987 4,396 3,902
Service charges on deposit accounts 681 706 1,245 1,391 Securities
transactions, net 19 12 (212) 279 Gain on sales of mortgage loans,
net 173 150 275 276 Other 807 912 1,578 1,673 Total non-interest
income 6,320 5,505 11,963 11,024 Non-interest expense: Salaries and
employee benefits 6,170 5,764 12,165 11,685 Occupancy 826 783 1,620
1,575 Equipment 725 628 1,406 1,243 Data processing 880 719 1,789
1,457 Office supplies 322 301 623 597 Amortization expense - core
deposit intangibles 218 217 435 435 Service charges from
correspondent banks 83 82 161 146 Other 1,454 1,808 2,821 3,209
Total non-interest expense 10,678 10,302 21,020 20,347 Income
before income taxes 7,670 7,152 14,384 14,454 Income taxes 2,738
2,353 4,678 4,965 Net income $4,932 $4,799 $9,706 $9,489 SELECTED
FINANCIAL HIGHLIGHTS (dollars in thousands, except share data)
Three Months Ended June 30, Mar. 31, June 30, 2007 2007 2006
EARNINGS & PER SHARE DATA Basic earnings per share $0.49 $0.48
$0.47 Weighted average shares of common stock outstanding
10,039,138 10,029,580 10,125,520 Diluted earnings per share $0.49
$0.47 $0.47 Weighted average shares of common stock and dilutive
potential common shares outstanding 10,158,326 10,191,282
10,247,920 Market price per share at period end(1) $31.00 $33.00
$30.50 Price to book ratio(1) 199.61% 215.83% 210.93% Price to
earnings ratio(1,2) 15.98 17.19 16.31 Cash dividends paid per share
$0.25 $0.25 $0.23 Cash dividends declared per share $0.25 $0.25
$0.23 Book value per share $15.53 $15.29 $14.46 Tangible book value
per share(3) $13.27 $13.02 $12.16 Ending number of common shares
outstanding 10,039,138 10,039,138 10,099,281 AVERAGE BALANCES
Assets $1,535,212 $1,539,134 $1,586,412 Investment securities
377,877 406,395 467,576 Gross loans(4) 1,013,082 1,004,700 983,060
Earning assets 1,406,479 1,408,517 1,460,496 Deposits 1,252,923
1,241,315 1,242,725 Interest bearing liabilities 1,147,157
1,147,365 1,207,313 Common shareholders' equity 155,090 151,964
146,123 END OF PERIOD FINANCIAL DATA Tax equivalized net interest
income $12,617 $12,144 $12,562 Gross loans(4) 1,013,328 1,010,774
989,176 Allowance for loan losses 13,361 13,731 13,895 Total assets
under management 2,166,060 2,133,273 2,184,056 PERFORMANCE RATIOS
Return on average assets(5) 1.29% 1.26% 1.21% Return on average
equity(5) 12.76% 12.74% 13.17% Net yield on average earning
assets(5,6) 3.60% 3.50% 3.45% Interest spread(5,6) 2.89% 2.79%
2.86% Net overhead efficiency ratio(6,7) 56.44% 57.40% 57.06%
Non-interest revenues as a % of total revenues(7,8) 33.55% 32.84%
30.70% Allowance for loan losses to loans 1.32% 1.36% 1.40%
Allowance as a percentage of non-performing loans 143.53% 161.37%
169.82% Average loan to deposit ratio 80.86% 80.94% 79.11% Dividend
payout ratio(2) 50.52% 50.00% 48.66% ASSET QUALITY Net charge-offs
$820 $1,306 $154 Non-performing loans 9,309 8,509 8,182 Other
non-performing assets 92 99 443 Six Months Ended June 30, June 30,
2007 2006 EARNINGS & PER SHARE DATA Basic earnings per share
$0.97 $0.94 Weighted average shares of common stock outstanding
10,034,359 10,133,648 Diluted earnings per share $0.95 $0.93
Weighted average shares of common stock and dilutive potential
common shares outstanding 10,173,924 10,255,595 Market price per
share at period end(1) $31.00 $30.50 Price to book ratio(1) 199.61%
210.93% Price to earnings ratio(1,2) 15.98 16.31 Cash dividends
paid per share $0.50 $0.46 Cash dividends declared per share $0.50
$0.46 Book value per share $15.53 $14.46 Tangible book value per
share(3) $13.27 $12.16 Ending number of common shares outstanding
10,039,138 10,099,281 AVERAGE BALANCES Assets $1,537,173 $1,590,762
Investment securities 392,136 468,634 Gross loans(4) 1,008,891
986,898 Earning assets 1,407,498 1,463,649 Deposits 1,247,119
1,246,339 Interest bearing liabilities 1,147,261 1,208,056 Common
shareholders' equity 153,527 145,500 END OF PERIOD FINANCIAL DATA
Tax equivalized net interest income $24,761 $25,023 Gross loans(4)
1,013,328 989,176 Allowance for loan losses 13,361 13,895 Total
assets under management 2,166,060 2,184,056 PERFORMANCE RATIOS
Return on average assets(5) 1.27% 1.20% Return on average equity(5)
12.75% 13.15% Net yield on average earning assets(5,6) 3.55% 3.45%
Interest spread(5,6) 2.84% 2.88% Net overhead efficiency ratio(6,7)
56.91% 56.89% Non-interest revenues as a % of total revenues(7,8)
33.21% 30.33% Allowance for loan losses to loans 1.32% 1.40%
Allowance as a percentage of non-performing loans 143.53% 169.82%
Average loan to deposit ratio 80.90% 79.18% Dividend payout
ratio(2) 50.52% 48.66% ASSET QUALITY Net charge-offs $2,126 $477
Non-performing loans 9,309 8,182 Other non-performing assets 92 443
(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 securities intangibles
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 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. 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/
Copyright