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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