Main Street Trust Reports Earnings for Second Quarter 2004
CHAMPAIGN, Ill., July 27 /PRNewswire-FirstCall/ -- Main Street
Trust, Inc. (OTC:MSTI) (BULLETIN BOARD: MSTI) continued to record
solid earnings for the second quarter of 2004. Unaudited
consolidated net income per share for the quarter ended June 30,
2004 was $0.39 per diluted share, compared to $0.39 per diluted
share for the same period in 2003. Consolidated net income for the
quarter totaled $3.718 million compared to $4.132 million for the
same period in 2003. Unaudited consolidated net income per share
for the six month period ended June 30, 2004 was $0.80 per diluted
share, compared to $0.80 per diluted share for the same period in
2003. Consolidated net income for the six months ended June 30,
2004 totaled $7.661 million compared to $8.430 million for the same
period in 2003. When comparing the consolidated net income with
prior periods, it is important to note that the company utilized
approximately $32.4 million of its capital on September 30, 2003 to
repurchase 1,074,140 shares of MSTI common stock. This action
resulted in comparatively lower total income. Van A. Dukeman,
President and CEO stated that, "the Company experienced good growth
in the loan portfolio and we continue to judge our loan credit
quality to be excellent. Year-to-date revenues from wealth
management continue to be very favorable with a 17.6% increase over
last year. The primary factors in this area were excellent
investment performance for our clients and new asset growth." Cash
Dividend Paid The Company distributed a $0.21 per share cash
dividend on July 23, 2004, payable to shareholders of record on
July 9, 2004. This the second quarterly cash dividend paid in 2004.
Main Street Trust Stock The closing price of MSTI stock at June 30,
2004 was $30.90 per share, a 3.0% increase from $30.00 per share at
June 30, 2003. Franchise Main Street Trust, Inc. is a $1.2 billion
dollar financial holding company headquartered in Champaign,
Illinois. This Downstate Illinois franchise has two banking
subsidiaries: BankIllinois and The First National Bank of Decatur,
offering 17 banking centers and 75 surcharge-free ATMs in six
communities in Illinois including, Champaign, Mahomet, Urbana,
Decatur, Shelbyville, and Mount Zion. Its Wealth Management
Division also manages $1.6 billion of financial assets for
individuals and institutions. The Company also owns a retail
payment processing subsidiary, FirsTech, Inc., which processes over
40 million items per year. SELECTED FINANCIAL HIGHLIGHTS Three
Months Ended Six Months Ended June 30, June 30, March 31, June 30,
June 30, 2004 2003 2004 2004 2003 (dollars in thousands, except
share data) EARNINGS & PER SHARE DATA Basic earnings per share
$0.39 $0.39 $0.41 $0.81 $0.80 Weighted average shares of common
stock outstanding 9,505,500 10,496,736 9,509,487 9,507,493
10,487,954 Diluted earnings per share $0.39 $0.39 $0.41 $0.80 $0.80
Weighted average shares of common stock and dilutive potential
common shares outstanding 9,619,707 10,605,680 9,630,341 9,625,020
10,590,106 Market price per share at period end(1) $30.90 $30.00
$30.60 $30.90 $30.00 Price to book ratio(1) 262.09% 225.39% 254.15%
262.09% 225.39% Price to earnings ratio(1,2) 19.31 18.29 19.13
19.31 18.29 Cash dividends paid per share $0.21 $0.15 $0.21 $0.42
$0.30 Book value per share $11.79 $13.31 $12.04 $11.79 $13.31
Tangible book value per share(3) $11.78 $13.30 $12.03 $11.78 $13.30
Ending number of common shares outstanding 9,473,116 10,484,818
9,534,243 9,473,116 10,484,818 AVERAGE BALANCES Assets $1,197,343
$1,122,612 $1,171,199 $1,184,271 $1,115,134 Investment securities
389,655 363,493 357,461 373,558 348,004 Gross loans(4) 707,694
641,943 696,568 702,131 654,895 Earning assets 1,111,743 1,042,958
1,084,657 1,098,200 1,032,978 Deposits 948,490 852,969 910,510
929,500 850,747 Interest bearing liabilities 908,703 823,853
882,417 895,560 818,021 Common shareholders' equity 112,809 138,520
113,061 112,935 137,131 END OF PERIOD FINANCIAL DATA Tax
equivalized net interest income $9,505 $10,065 $9,772 $19,277
$20,431 Gross loans(4) 717,591 642,867 703,340 717,591 642,867
Reserve for loan losses 10,084 9,735 9,951 10,084 9,735 Total
assets under management 1,614,771 1,461,125 1,556,158 1,614,771
1,461,125 PERFORMANCE RATIOS Return on average assets(5) 1.25%
1.48% 1.35% 1.30% 1.52% Return on average equity(5) 13.26% 11.96%
14.03% 13.64% 12.40% Net yield on average earning assets(5,6) 3.44%
3.87% 3.62% 3.53% 3.99% Interest spread(5,6) 3.11% 3.43% 3.29%
3.21% 3.54% Net overhead efficiency ratio(6,7) 56.67% 54.14% 54.97%
55.81% 53.51% Non-interest revenues as a % of total revenues(7,8)
35.88% 33.61% 35.11% 35.49% 33.15% Allowance for loan losses to
loans 1.41% 1.51% 1.41% 1.41% 1.51% Allowance as a percentage of
non-performing Loans 367.76% 424.37% 391.16% 367.76% 424.37%
Average loan to deposit ratio 74.61% 75.26% 76.50% 75.54% 76.98%
Dividend payout ratio(2) 51.23% 38.18% 50.62% 51.23% 38.18% ASSET
QUALITY Net charge- offs $197 $217 $165 $362 $184 Non-performing
loans 2,742 2,294 2,544 2,742 2,294 Other non-performing assets 126
259 198 126 259 (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 (7)Does not include securities (4)Loans include
mortgage loans gains/losses held for sale and (8)Net of interest
expense nonaccrual loans Special Note Concerning Forward-Looking
Statements This document (including information incorporated by
reference) may contain future oral and written statements of the
Company and its management 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, December 31, June 30, 2004 2003 2003 ASSETS Cash and cash
equivalents $57,847 $75,903 $76,901 Investments in debt and equity
securities 385,373 370,726 378,215 Mortgage loans held for sale 890
632 7,875 Loans, net of allowance for loan losses 706,617 666,259
625,257 Premises and equipment 16,966 17,622 17,824 Accrued
interest receivable 6,615 6,430 6,704 Other assets 20,369 16,602
13,706 Total assets $1,194,677 $1,154,174 $1,126,482 LIABILITIES
AND SHAREHOLDERS' EQUITY Liabilities: Deposits $959,424 $898,472
$851,868 Federal funds purchased, repurchase agreements and notes
payable 82,144 102,998 95,707 Federal Home Loan Bank advances and
other borrowings 29,920 29,980 27,748 Accrued interest payable
1,987 1,669 1,964 Other liabilities 9,509 9,605 9,591 Total
liabilities $1,082,984 $1,042,724 $986,878 Total shareholders'
equity 111,693 111,450 139,604 Total liabilities and shareholders'
equity $1,194,677 $1,154,174 $1,126,482 Consolidated Statements of
Income (Unaudited, in thousands) Quarter Ended: Six Months Ended:
June 30, June 30, June 30, June 30, 2004 2003 2004 2003 Interest
Income: Loans and fees on loans $10,013 $10,348 $20,064 $21,402
Investments in debt and equity securities Taxable 2,699 2,949 5,413
5,772 Tax-exempt 476 579 979 1,166 Federal funds sold and interest
bearing deposits 75 152 188 254 Total interest income 13,263 14,028
26,644 28,594 Interest expense: Deposits 3,344 3,618 6,546 7,491
Federal funds purchased, repurchase agreements and notes payable
276 280 557 547 Federal Home Loan Bank advances and other
borrowings 398 384 797 764 Total interest expense 4,018 4,282 7,900
8,802 Net interest income 9,245 9,746 18,744 19,792 Provision for
loan losses 330 330 660 660 Net interest income after provision for
loan losses 8,915 9,416 18,084 19,132 Non-interest income:
Remittance processing 1,923 1,732 3,815 3,498 Trust and brokerage
fees 1,625 1,333 3,287 2,795 Service charges on deposit accounts
622 660 1,201 1,240 Securities transactions, net (2) - 6 (43) Gain
on sales of mortgage loans, net 345 698 548 1,242 Other 659 511
1,462 1,038 Total non-interest income 5,172 4,934 10,319 9,770
Non-interest expense: Salaries and employee benefits 4,543 4,594
9,251 9,243 Occupancy 638 583 1,283 1,206 Equipment 647 563 1,280
1,212 Data processing 555 529 1,087 1,058 Office supplies 312 325
617 628 Service charges from correspondent banks 233 236 458 465
Other 1,390 1,291 2,539 2,373 Total non-interest expense 8,318
8,121 16,515 16,185 Income before income taxes 5,769 6,229 11,888
12,717 Income taxes 2,051 2,097 4,227 4,287 Net income $3,718
$4,132 $7,661 $8,430 DATASOURCE: Main Street Trust, Inc. CONTACT:
Van A. Dukeman, CFA, President and CEO of Main Street Trust, Inc.,
, +1-217-351-6568 Web site: http://www.bankillinois.com/ x
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