Main Street Trust Reports Solid Earnings for First Quarter 2004
CHAMPAIGN, Ill., April 26 /PRNewswire-FirstCall/ -- Main Street
Trust, Inc. (BULLETIN BOARD: MSTI) recorded solid earnings for the
quarter ended March 31, 2004. Unaudited consolidated net income per
share for the quarter ended March 31, 2004 remained at $0.41 per
diluted share, compared to $0.41 per diluted share for the same
period in 2003. Consolidated net income for the quarter totaled
$3.943 million compared to $4.298 million for the same period in
2003. Earnings per share remained stable, primarily as a result of
the company utilizing approximately $32.4 million of its capital to
repurchase 1,074,140 shares of MSTI common stock on September 30,
2003. Van A. Dukeman, President and CEO, stated that, "Though the
first quarter net earnings per share were flat compared to 2003, we
continue to see positive signs for future growth in the local and
national economy. Average loans increased to $696.6 million in the
first quarter of 2004 from $661.1 million in the fourth quarter of
2003, a 5.4% increase, and the assets managed in our Wealth
Management Division have grown 12% in the last year. Asset (credit)
quality continues to be excellent." Financial Highlights The
following delineates applicable financial measurements: -- Net
Income Per Share * Diluted net income per share was $0.41 for first
quarter 2004 - Compared to $0.41 per share for fourth quarter 2003
- Compared to $0.41 per share for first quarter 2003 -- Net Income
* Net income was $3.943 million for first quarter 2004 - Compared
to $3.910 million for fourth quarter 2003 - Compared to $4.298
million for first quarter 2003 -- Return on Assets * Return on
assets was 1.35% for first quarter 2004 - Compared to 1.36% for
fourth quarter 2003 - Compared to 1.57% for first quarter 2003 --
Return on Equity * Return on equity was 14.03% for first quarter
2004 - Compared to 14.06% for fourth quarter 2003 - Compared to
12.84% for first quarter 2003 -- Net Yield on Interest Earning
Assets * Net yield on interest earning assets was 3.62% for first
quarter 2004 - Compared to 3.69% for fourth quarter 2003 - Compared
to 4.11% for first quarter 2003 -- Non-interest Revenues as a % of
Total Revenues (Net of Interest Expense, Excluding Gains/Losses on
Sales of Securities) * Non-interest revenues as a % of total
revenues were 35.11% for first quarter 2004 - Compared to 34.80%
for fourth quarter 2003 - Compared to 32.69% for first quarter 2003
-- Efficiency Ratio (Excluding Gains/Losses on Sales of Securities)
* Efficiency ratio was 54.97% for first quarter 2004 - Compared to
53.21% for fourth quarter 2003 - Compared to 52.90% for first
quarter 2003 -- Non-Performing Loans * Non-performing loans were
$2.544 million as of March 31, 2004, or 0.36% of loans - Compared
to $1.020 million or 0.15% of loans as of December 31, 2003 -
Compared to $2.095 million or 0.32% of loans as of March 31, 2003
-- Book Value Per Share * Book value per share as of March 31, 2004
was $12.04 - Compared to $11.73 per share as of December 31, 2003 -
Compared to $13.06 per share as of March 31, 2003 -- Total Assets *
Total assets were $1.183 billion as of March 31, 2004 - Compared to
$1.154 billion as of December 31, 2003 - Compared to $1.118 billion
as of March 31, 2003 -- Total Assets Under Management * Total
assets under management were $1.556 billion as of March 31, 2004 -
Compared to $1.514 billion as of December 31, 2003 - Compared to
$1.390 billion as of March 31, 2003 Cash Dividend Paid The Company
distributed a $0.21 per share cash dividend payable to shareholders
of record on April 9, 2004. This compares to a $0.21 per share
dividend paid in January 2004 and a $0.15 per share dividend paid
in April 2003. Main Street Trust Stock Main Street Trust stock
trades on the Over-the-Counter Bulletin Board under the symbol
"MSTI". The closing price of MSTI stock on March 31, 2004 was
$30.60 per share, a 21.2% increase as compared to $25.25 per share
on March 31, 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 in excess of $1.5 billion of financial assets
for individuals and institutions. The Company also owns a retail
payment processing subsidiary, FirsTech, Inc., which processes over
50 million items per year. This letter may contain forward-looking
statements. Forward-looking statements are identifiable by the
inclusion of such qualifications as expects, intends, believes,
may, likely or similar statements or variations of such terms which
express views concerning trends and the future. These forward
looking statements are not historical facts and instead are
expressions about management's confidence and strategies, and
management's expectations about new and existing programs and
products, relationships, opportunities, technology and market
conditions. Actual events and results may differ significantly from
those described in such forward looking statements, due to changes
in the general economic or market conditions, government
regulation, competition or other factors. For additional
information about these factors, please review our filings with the
Securities and Exchange Commission. SELECTED FINANCIAL HIGHLIGHTS
(dollars in thousands, except for per share data) Three Months
Ended March 31, December 31, March 31, 2004 2003 2003 Average
Balances: Total Assets $1,171,199 $1,138,483 $1,107,656 Investment
Securities 357,461 373,224 332,515 Gross Loans(1) 696,568 661,123
667,847 Earning Assets 1,084,657 1,053,279 1,022,998 Deposits
910,510 883,647 848,527 Interest Bearing Liabilities 882,417
861,618 812,189 Common Equity 113,061 110,332 135,742 Financial
Highlights: Tax Equivalized Net Interest Income $9,772 $9,790
$10,366 Total Assets 1,182,602 1,154,174 1,118,010 Gross Loans(1)
703,340 676,677 648,130 Reserve for Loan Losses 9,951 9,786 9,622
Non-Performing Loans 2,544 1,020 2,095 Net (Charge-offs)/Recoveries
(165) (387) 33 Total Assets Under Management 1,556,158 1,514,142
1,390,317 Financial Ratios: Return on Average Assets(2) 1.35% 1.36%
1.57% Return on Average Equity(2) 14.03% 14.06% 12.84% Net Yield on
Average Earning Assets(2,4) 3.62% 3.69% 4.11% Net Interest
Spread(2,4) 3.29% 3.36% 3.64% Non-Interest Revenues as a % of Total
Revenues(3,6) 35.11% 34.80% 32.69% Net Overhead Efficiency
Ratio(3,4) 54.97% 53.21% 52.90% Average Loan to Deposit Ratio
76.50% 74.82% 78.71% Reserve for Loan Losses to Loans 1.41% 1.45%
1.48% Reserve as a Percentage of Non- Performing Loans 391.16%
959.41% 459.28% Dividend Payout Ratio(7) 50.62% 46.91% 34.57%
Common Stock Data: Shareholders' Equity $114,771 $111,450 $137,132
Common Shares Outstanding 9,534,243 9,500,369 10,500,599
Shareholders' Equity to Total Assets 9.70% 9.66% 12.27% Book Value
Per Share $12.04 $11.73 $13.06 Cash Dividends Paid Per Share $0.21
$0.20 $0.15 Market Price at Period End(5) $30.60 $31.00 $25.25
Price to Book Ratio(5) 254.15% 264.28% 193.34% Price to Earnings
Ratio(5,7) 19.13 19.38 15.68 (1) Loans include mortgage loans
held-for-sale and nonaccrual loans. (2) Annualized. (3) Does not
include securities gains/losses. (4) On a fully tax-equivalized
basis. (5) Closing price at end of period. (6) Net of interest
expense. (7) Last 12-months earnings Consolidated Balance Sheets
(Unaudited, in thousands, except share data) March 31, December 31,
March 31, 2004 2003 2003 ASSETS Cash and due from banks $35,830
$45,899 $58,443 Federal funds sold and interest bearing deposits
22,172 30,004 30,971 Cash and cash equivalents 58,002 75,903 89,414
Investments in debt and equity securities: Available-for-sale, at
fair value 267,122 265,914 259,880 Held-to-maturity, at cost
116,651 97,056 86,190 Non-marketable equity securities 7,753 7,756
7,177 Total investments in debt and equity securities 391,526
370,726 353,247 Mortgage loans held for sale 2,147 632 4,086 Loans,
net of allowance for loan losses 691,242 666,259 634,422 Premises
and equipment 17,104 17,622 17,940 Accrued interest receivable
6,787 6,430 7,245 Other assets 15,794 16,602 11,656 Total assets
$1,182,602 $1,154,174 $1,118,010 LIABILITIES AND SHAREHOLDERS'
EQUITY Liabilities: Deposits: Non-interest bearing $160,214
$162,175 $155,607 Interest bearing 750,007 736,297 692,369 Total
deposits 910,221 898,472 847,976 Federal funds purchased,
repurchase agreements and notes payable 116,152 102,998 94,248
Federal Home Loan Bank advances and other borrowings 29,939 29,980
27,765 Accrued interest payable 1,773 1,669 1,939 Other liabilities
9,746 9,605 8,950 Total liabilities 1,067,831 1,042,724 980,878
Shareholders' equity: Preferred stock - - - Common stock 112 112
112 Paid in capital 55,199 55,271 55,340 Retained earnings 103,382
101,521 95,403 Accumulated other comprehensive income 2,545 1,941
3,062 161,238 158,845 153,917 Less: treasury stock, at cost
(46,467) (47,395) (16,785) Total shareholders' equity 114,771
111,450 137,132 Total liabilities and shareholders' equity
$1,182,602 $1,154,174 $1,118,010 Consolidated Statements of Income
(Unaudited, in thousands, except share data) Three Months Ended
March 31, December 31, March 31, Interest income: 2004 2003 2003
Loans and fees on loans $10,051 $9,919 $11,054 Investments in debt
and equity securities Taxable 2,714 2,855 2,823 Tax-exempt 503 548
587 Federal funds sold and interest bearing deposits 113 84 102
Total interest income 13,381 13,406 14,566 Interest expense:
Deposits 3,202 3,233 3,873 Federal funds purchased, repurchase
agreements and notes payable 281 277 267 Federal Home Loan Bank
advances and other borrowings 399 403 380 Total interest expense
3,882 3,913 4,520 Net interest income 9,499 9,493 10,046 Provision
for loan losses 330 480 330 Net interest income after provision for
loan losses 9,169 9,013 9,716 Non-interest income: Remittance
processing 1,892 1,899 1,766 Trust and brokerage fees 1,662 1,553
1,462 Service charges on deposit accounts 579 639 580 Securities
transactions, net 8 37 (43) Gain on sales of mortgage loans, net
203 322 544 Other 803 654 527 Total non-interest income 5,147 5,104
4,836 Non-interest expense: Salaries and employee benefits 4,708
4,352 4,649 Occupancy 645 642 623 Equipment 633 602 649 Data
processing 532 545 529 Office supplies 305 304 303 Service charges
from correspondent banks 225 233 229 Other 1,149 1,228 1,082 Total
non-interest expense 8,197 7,906 8,064 Income before income taxes
6,119 6,211 6,488 Income taxes 2,176 2,301 2,190 Net income $3,943
$3,910 $4,298 Per share data: Basic earnings per share $0.41 $0.41
$0.41 Weighted average shares of common stock outstanding 9,509,487
9,496,069 10,479,172 Diluted earnings per share $0.41 $0.41 $0.41
Weighted average shares of common stock and dilutive potential
common shares outstanding 9,630,341 9,621,600 10,582,223
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/
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