CHAMPAIGN, Ill., October 23 /PRNewswire-FirstCall/ -- Main Street
Trust, Inc. (OTC:MSTI) (BULLETIN BOARD: MSTI) reported year-to-date
2006 earnings per share on a fully diluted basis of $1.39, compared
to $1.37 for the comparable period in 2005. Main Street also
reported earnings of $0.46 in unaudited consolidated net income per
diluted share for the quarter ended September 30, 2006, compared to
$0.50 per diluted share for the same period in 2005. Consolidated
net income for the quarter totaled $4.679 million compared to
$5.151 million for the same period in 2005. Year-to-date net income
was $14.168 million compared to $13.811 million in 2005. MSTI stock
closed at $34.45 on September 30, 2006 compared to $30.50 on June
30, 2006. Van A. Dukeman, President and CEO stated that, "This was
a unique quarter for our Company, as evidenced by the historical
announcement on September 21 that Main Street Trust, Inc. and First
Busey Corporation have signed a definitive agreement to join forces
in a merger of equals. News of the merger was well received in our
communities. As we reported in an earlier news release, Main Street
shareholders will receive shares of First Busey common stock, using
a fixed exchange ratio of 1.55 shares of First Busey common stock
for each share of Main Street common stock. The combined company
will operate under the name First Busey Corporation and will
continue to list its common stock on the Nasdaq Global Select
Market, trading under the symbol BUSE." Dukeman further stated
that, "The merger is subject to regulatory approval, as well as
approval by First Busey and Main Street shareholders and other
customary conditions. The transaction is expected to be completed
during the second quarter of 2007." Cash Dividend Paid The Company
distributed a $0.23 per share cash dividend on October 20, 2006,
payable to shareholders of record on October 6, 2006. This is the
fourth quarterly cash dividend paid in 2006; making total dividends
paid to- date $0.92 per share for 2006, compared to $0.88 per share
for the same period in 2005. Franchise Main Street Trust, Inc. is a
diversified financial services company with $1.6 billion in assets
as of September 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 $2.3 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) September 30, June 30, December 31, September 30, 2006
2006 2005 2005 ASSETS Cash and cash equivalents $59,309 $46,590
$94,066 $112,845 Investments in debt and equity securities 431,222
451,151 444,623 334,576 Mortgage loans held for sale 1,912 2,064
1,661 1,973 Loans, net of allowance for loan losses 980,499 973,217
1,002,927 1,000,825 Premises and equipment 22,402 22,707 23,047
22,364 Goodwill 20,736 20,736 20,736 20,832 Core deposit
intangibles 3,916 4,134 4,569 4,786 Accrued interest receivable
11,359 9,476 8,461 9,157 Other assets 26,795 26,069 25,047 26,061
Total assets $1,558,150 $1,556,144 $1,625,137 $1,533,419
LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Deposits
$1,251,147 $1,205,731 $1,275,972 $1,181,826 Federal funds
purchased, repurchase agreements and notes payable 110,956 141,716
118,452 117,130 Federal Home Loan Bank advances and other
borrowings 29,574 44,670 67,386 71,482 Accrued interest payable
4,893 4,604 4,657 3,727 Other liabilities 13,377 13,422 14,901
15,025 Total liabilities $1,409,947 $1,410,143 $1,481,368
$1,389,190 Total shareholders' equity 148,203 146,001 143,769
144,229 Total liabilities and shareholders' equity $1,558,150
$1,556,144 $1,625,137 $1,533,419 Consolidated Statements of Income
(Unaudited, in thousands) Quarter Ended: Nine Months Ended:
September 30, September 30, September 30, September 30, 2006 2005
2006 2005 Interest Income: Loans and fees on loans $18,056 $16,643
$52,207 $43,961 Investments in debt and equity securities Taxable
4,635 3,664 13,321 9,269 Tax-exempt 284 370 906 1,156 Federal funds
sold and interest bearing deposits 268 439 965 1,252 Total interest
income 23,243 21,116 67,399 55,638 Interest expense: Deposits 8,769
5,868 24,389 14,871 Federal funds purchased, repurchase agreements
and notes payable 1,467 870 4,064 2,128 Federal Home Loan Bank
advances and other borrowings 484 812 1,746 1,985 Total interest
expense 10,720 7,550 30,199 18,984 Net interest income 12,523
13,566 37,200 36,654 Provision for loan losses 450 450 1,350 1,080
Net interest income after provision for loan losses 12,073 13,116
35,850 35,574 Non-interest income: Remittance processing 1,863
1,741 5,366 5,144 Trust and brokerage fees 2,042 2,153 5,944 5,805
Service charges on deposit accounts 670 820 2,061 2,129 Securities
transactions, net - (485) 279 (450) Gain on sales of mortgage
loans, net 166 329 442 726 Other 747 740 2,420 2,017 Total
non-interest income 5,488 5,298 16,512 15,371 Non-interest expense:
Salaries and employee benefits 6,008 6,097 17,693 17,325 Occupancy
747 824 2,322 2,293 Equipment 619 674 1,862 1,955 Data processing
821 566 2,278 1,669 Office supplies 295 319 892 906 Amortization
expense- core deposit intangibles 218 217 653 435 Service charges
from correspondent banks 68 134 214 389 Other 1,646 1,480 4,855
4,342 Total non- interest expense 10,422 10,311 30,769 29,314
Income before income taxes 7,139 8,103 21,593 21,631 Income taxes
2,460 2,952 7,425 7,820 Net income $4,679 $5,151 $14,168 $13,811
SELECTED FINANCIAL HIGHLIGHTS (dollars in thousands, except share
data) Three Months Ended Nine Months Ended Sept. 30, June 30, Sept.
30, Sept. 30, Sept. 30, 2006 2006 2005 2006 2005 EARNINGS & PER
SHARE DATA Basic earnings per share $0.46 $0.47 $0.50 $1.40 $1.38
Weighted average shares of common stock outstanding 10,076,548
10,125,520 10,248,453 10,114,614 10,014,234 Diluted earnings per
share $0.46 $0.47 $0.50 $1.39 $1.37 Weighted average shares of
common stock and dilutive potential common shares outstanding
10,189,861 10,247,920 10,341,647 10,224,308 10,111,588 Market price
per share at period end(1) $34.45 $30.50 $29.35 $34.45 $29.35 Price
to book ratio(1) 233.56% 210.93% 208.16% 233.56% 208.16% Price to
earnings ratio(1),(2) 18.83 16.31 16.68 18.83 16.68 Cash dividends
paid per share $0.23 $0.23 $0.22 $0.69 $0.66 Cash dividends
declared per share $0.23 $0.23 $0.22 $0.69 $0.66 Book value per
share $14.75 $14.46 $14.10 $14.75 $14.10 Tangible book value per
share(3) $12.45 $12.16 $11.60 $12.45 $11.60 Ending number of common
shares outstanding 10,046,079 10,099,281 10,228,542 10,046,079
10,228,542 AVERAGE BALANCES Assets $1,551,348 $1,586,412 $1,537,563
$1,577,624 $1,435,085 Investment securities 442,387 467,576 360,031
459,885 358,431 Gross loans(4) 982,152 983,060 1,020,809 985,316
935,253 Earning assets 1,423,770 1,460,496 1,407,522 1,450,356
1,323,396 Deposits 1,229,713 1,242,725 1,187,693 1,240,796
1,115,405 Interest bearing liabilities 1,171,468 1,207,313
1,162,494 1,195,860 1,084,282 Common shareholders' equity 146,880
146,123 143,826 145,960 134,066 END OF PERIOD FINANCIAL DATA Tax
equivalized net interest income $12,680 $12,562 $13,770 $37,703
$37,287 Gross loans(4) 996,644 989,176 1,016,486 996,644 1,016,486
Allowance for loan losses 14,233 13,895 13,688 14,233 13,688 Total
assets under management 2,332,516 2,184,056 1,870,721 2,332,516
1,870,721 PERFORMANCE RATIOS Return on average assets(5) 1.20%
1.21% 1.33% 1.20% 1.29% Return on average equity(5) 12.64% 13.17%
14.21% 12.98% 13.77% Net yield on average earning assets(5),(6)
3.53% 3.45% 3.88% 3.48% 3.77% Interest spread (5),(6) 2.89% 2.86%
3.43% 2.88% 3.34% Net overhead efficiency ratio (6),(7) 57.36%
57.06% 52.73% 57.05% 55.20% Non-interest revenues as a % of total
revenues(7),(8) 30.47% 30.70% 29.89% 30.38% 30.15% Allowance for
loan losses to loans 1.43% 1.40% 1.35% 1.43% 1.35% Allowance as a
percentage of non-performing loans 167.86% 169.82% 298.28% 167.86%
298.28% Average loan to deposit ratio 79.87% 79.11% 85.95% 79.41%
83.85% Dividend payout ratio(2) 50.27% 48.66% 50.00% 50.27% 50.00%
ASSET QUALITY Net charge-offs $112 $154 $390 $589 $476
Non-performing loans 8,479 8,182 4,589 8,479 4,589 Other non-
performing assets 231 443 90 231 90 (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.
DATASOURCE: Main Street Trust, Inc. CONTACT: Van A. Dukeman,
President-CEO, of Main Street Trust, +1-217-351-6568, fax,
+1-217-351-6651 Web site: http://www.mainstreettrust.com/
Copyright