CHAMPAIGN, Ill., Jan. 27 /PRNewswire-FirstCall/ -- Main Street Trust, Inc. (BULLETIN BOARD: MSTI) is pleased to report record year-end earnings of $1.80 net income per diluted share, compared to $1.54 earnings per share for 2004, an increase of 16.9%. Consolidated net income for the year ended December 31, 2005 totaled $18.308 million compared to $14.778 million for 2004, an increase of 23.9%. Earnings of $0.44 per diluted share were reported for fourth quarter 2005, compared to $0.37 earnings per share for the same period in 2004, an increase of 18.9%. Consolidated net income for the fourth quarter totaled $4.497 million compared to $3.562 million for the same period in 2004, an increase of 26.2%.
Van A. Dukeman, President and CEO, stated that, "These record earnings reflect favorably on the efforts of our Main Street Associates in executing our mission of building relationships through Trust, Knowledge and Service. That execution strategy in the fourth quarter included the successful integration and conversion of the former Citizen's Savings Bank into the Main Street family. Another milestone achieved this quarter was our core bank surpassing $1.6 billion in total assets while assets under management in our Wealth Management division topped $1.9 billion.
We will continue to build our brand in 2006 with the launch of several initiatives highlighted by a new website and the construction of two new banking centers by Main Street Bank & Trust in Normal and Peoria over the coming months."
Cash Dividend Paid
The Company distributed a $0.23 per share cash dividend on January 27, 2006, payable to shareholders of record on January 13, 2006. This is the fourth quarterly cash dividend declared in 2005, and represents a 5% increase in the quarterly dividend declared for the same period in 2004.
Franchise
Main Street Trust, Inc. is a diversified financial services company with $1.63 billion in assets as of December 31, 2005, 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 $1.96 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.
SELECTED FINANCIAL HIGHLIGHTS
(dollars in thousands, except share data)
Three Months Ended
Dec. 30, Dec. 30, Sept. 30,
2005 2004 2005
EARNINGS & PER SHARE DATA
Basic earnings per share $0.44 $0.38 $0.50
Weighted average shares of common
stock outstanding 10,197,424 9,448,657 10,248,453
Diluted earnings per share $0.44 $0.37 $0.50
Weighted average shares of common
stock and dilutive
potential common shares
outstanding 10,294,786 9,554,364 10,341,647
Market price per share at period
end(1) $29.85 $29.00 $29.35
Price to book ratio(1) 210.66% 240.46% 208.16%
Price to earnings ratio(1,2) 16.40 18.59 16.68
Cash dividends paid per share 0.22 0.21 0.22
Cash dividends declared per share 0.23 0.22 0.22
Book value per share $14.17 $12.06 $14.10
Tangible book value per share(3) $11.68 $12.06 $11.60
Ending number of common shares
outstanding 10,146,675 9,448,990 10,228,542
AVERAGE BALANCES
Assets $1,593,509 $1,239,921 $1,537,563
Investment securities 389,215 364,416 360,031
Gross loans(4) 1,025,537 751,631 1,020,809
Earning assets 1,470,756 1,156,435 1,407,522
Deposits 1,243,489 992,181 1,187,693
Interest bearing liabilities 1,222,910 943,950 1,162,494
Common shareholders' equity 144,286 113,616 143,826
END OF PERIOD FINANCIAL DATA
Tax equivalized net interest income $13,057 $10,160 $13,770
Gross loans(4) 1,018,060 771,882 1,016,486
Allowance for loan losses 13,472 9,650 13,688
Total assets under management 1,959,495 1,764,562 1,870,721
PERFORMANCE RATIOS
Return on average assets(5) 1.12% 1.14% 1.33%
Return on average equity(5) 12.37% 12.47% 14.21%
Net yield on average earning
assets(5,6) 3.52% 3.50% 3.88%
Interest spread(5,6) 3.05% 3.14% 3.43%
Net overhead efficiency ratio(6,7) 57.19% 60.55% 52.73%
Non-interest revenues as a % of
total revenues(7,8) 28.96% 31.55% 29.89%
Allowance for loan losses to loans 1.32% 1.25% 1.35%
Allowance as a percentage of non-
performing loans 449.07% 431.57% 298.28%
Average loan to deposit ratio 82.47% 75.76% 85.95%
Dividend payout ratio(2) 48.90% 54.49% 50.00%
ASSET QUALITY
Net charge-offs $666 $423 $390
Non-performing loans 3,000 2,236 4,589
Other non-performing assets 224 33 90
Twelve Months Ended
Dec. 30, Dec. 30,
2005 2004
EARNINGS & PER SHARE DATA
Basic earnings per share $1.82 $1.56
Weighted average shares of common
stock outstanding 10,060,032 9,481,034
Diluted earnings per share $1.80 $1.54
Weighted average shares of common
stock and dilutive
potential common shares
outstanding 10,157,409 9,594,148
Market price per share at period
end(1) $29.85 $29.00
Price to book ratio(1) 210.66% 240.46%
Price to earnings ratio(1,2) 16.40 18.59
Cash dividends paid per share 0.88 0.84
Cash dividends declared per share $0.89 0.85
Book value per share $14.17 $12.06
Tangible book value per share(3) $11.68 $12.06
Ending number of common shares
outstanding 10,146,675 9,448,990
AVERAGE BALANCES
Assets $1,474,691 $1,209,267
Investment securities 366,127 373,278
Gross loans(4) 957,824 722,030
Earning assets 1,360,236 1,123,174
Deposits 1,147,426 958,611
Interest bearing liabilities 1,118,939 918,963
Common shareholders' equity 136,621 112,968
END OF PERIOD FINANCIAL DATA
Tax equivalized net interest income $50,344 $38,958
Gross loans(4) 1,018,060 771,882
Allowance for loan losses 13,472 9,650
Total assets under management 1,959,495 1,764,562
PERFORMANCE RATIOS
Return on average assets(5) 1.24% 1.22%
Return on average equity(5) 13.40% 13.08%
Net yield on average earning
assets(5,6) 3.70% 3.47%
Interest spread(5,6) 3.26% 3.14%
Net overhead efficiency ratio(6,7) 55.71% 57.74%
Non-interest revenues as a % of
total revenues(7,8) 29.84% 34.19%
Allowance for loan losses to loans 1.32% 1.25%
Allowance as a percentage of non-
performing loans 449.07% 431.57%
Average loan to deposit ratio 83.48% 75.32%
Dividend payout ratio(2) 48.90% 54.49%
ASSET QUALITY
Net charge-offs $1,142 $1,236
Non-performing loans 3,000 2,236
Other non-performing assets 224 33
(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
intangibles securities gains/losses
(4) Loans include mortgage loans held (8) Net of interest expense
for sale and 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 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) December September December
31, 30, 31,
2005 2005 2004
ASSETS
Cash and cash equivalents $94,066 $112,845 $64,928
Investments in debt and equity
securities 444,623 334,576 358,726
Mortgage loans held for sale 1,661 1,973 1,005
Loans, net of allowance for loan
losses 1,002,927 1,000,825 761,227
Premises and equipment 23,047 22,364 17,087
Goodwill 20,736 20,832 -
Core deposit intangibles 4,569 4,786 -
Accrued interest receivable 8,461 9,157 6,570
Other assets 25,047 26,061 18,575
Total assets $1,625,137 $1,533,419 $1,228,118
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Deposits $1,275,972 $1,181,826 $974,577
Federal funds purchased, repurchase
agreements and notes payable 118,452 117,130 96,900
Federal Home Loan Bank advances and
other borrowings 67,386 71,482 29,882
Accrued interest payable 4,657 3,727 2,601
Other liabilities 14,901 15,025 10,183
Total liabilities $1,481,368 $1,389,190 $1,114,143
Total shareholders' equity 143,769 144,229 113,975
Total liabilities and
shareholders' equity $1,625,137 $1,533,419 $1,228,118
Consolidated Statements of Income
(Unaudited, in thousands) Quarter Ended: Twelve Months Ended:
December December December December
31, 31, 31, 31,
2005 2004 2005 2004
Interest Income:
Loans and fees on loans $17,027 $10,997 $60,988 $41,568
Investments in debt and equity
securities
Taxable 3,196 2,820 12,465 10,793
Tax-exempt 360 420 1,516 1,844
Federal funds sold and interest
bearing deposits 771 261 2,023 600
Total interest
income 21,354 14,498 76,992 54,805
Interest expense:
Deposits 6,718 3,783 21,589 13,972
Federal funds purchased, repurchase
agreements and notes payable 969 378 3,097 1,271
Federal Home Loan Bank advances and
other borrowings 808 407 2,793 1,609
Total interest
expense 8,495 4,568 27,479 16,852
Net interest income 12,859 9,930 49,513 37,953
Provision for loan losses 450 110 1,530 1,100
Net interest income
after provision
for loan losses 12,409 9,820 47,983 36,853
Non-interest income:
Remittance processing 1,604 1,566 6,748 7,201
Trust and brokerage fees 1,794 1,661 7,599 6,492
Service charges on deposit accounts 794 599 2,923 2,419
Securities transactions, net (136) (6) (586) 133
Gain on sales of mortgage loans, net 160 220 886 997
Other 890 530 2,907 2,605
Total non-interest
income 5,106 4,570 20,477 19,847
Non-interest expense:
Salaries and employee benefits 5,774 4,911 23,099 18,889
Occupancy 781 701 3,074 2,669
Equipment 637 626 2,592 2,512
Data processing 747 650 2,416 2,283
Office supplies 339 360 1,245 1,247
Amortization expense- core deposit
intangibles 218 - 653 -
Service charges from correspondent
banks 124 129 513 781
Other 1,845 1,545 6,187 5,498
Total non-interest
expense 10,465 8,922 39,779 33,879
Income before
income taxes 7,050 5,468 28,681 22,821
Income taxes 2,553 1,906 10,373 8,043
Net income $4,497 $3,562 $18,308 $14,778
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