Main Street Trust Announces 27% Increase in Second Quarter 2005 Net Income

Main Street Trust Announces 27% Increase in Second Quarter 2005
Net Income 


CHAMPAIGN, Ill., July 25  /PRNewswire-FirstCall/ -- Main Street Trust, Inc.
(OTC:MSTI) (BULLETIN BOARD: MSTI)  reported consolidated net income for the
quarter of $4.727 million compared to $3.718 million for the same period in
2004, an increase of 27.1%.  For the quarter ending June 30, 2005, earnings per
share on a fully-diluted basis were $0.45 compared to $0.39 per diluted share
for the same period in 2004, an increase of 15.4%.  Year-to-date net income was
$8.660 million compared to $7.661 million in 2004, an increase of 13.0%.
Year-to-date earnings per share on a fully-diluted basis were $0.87, an
increase of 8.8% from $0.80 for the comparable period in 2004.

Van A. Dukeman, President and CEO stated that, "The Company's acquisition of
Citizens First Financial Corp. (approximately $329 million in total assets)
headquartered in Bloomington, Illinois highlighted the second quarter.  Total
banking assets for MSTI have now grown to more than $1.5 billion as a result of
this purchase."

Dukeman further stated that, "Conversion plans are set to integrate our
Bloomington customer base into the Main Street Bank & Trust organization in the
fourth quarter of this year.  That process has already begun with alignment of
the Citizens and Main Street banking products.

"Main Street's 10-year strategic growth plan calls for expansion into
additional Downstate markets.  The Citizens transaction has contributed to the
expansion of our footprint.  Main Street has economic centers in Champaign-
Urbana, Bloomington-Normal, Peoria and Decatur.  Our customers now have 23
banking facilities in Downstate Illinois to conduct their financial business.
We will continue to enhance current and build new multi-faceted customer
relationships in these economic centers through trust, knowledge, and service."

Cash Dividend Paid

The Company distributed a $0.22 per share cash dividend on July 22, 2005,
payable to shareholders of record on July 8, 2005.  This is the third quarterly
cash dividend paid in 2005; making total dividends paid to-date $0.66 per share
for 2005, compared to $0.63 per share for the same period in 2004.

Franchise

Main Street Trust, Inc. is a diversified financial services company with $1.52
billion in assets as of June 30, 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 $1.8 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 nearly 30
million items per year.

Special Note Concerning Forward-Looking Statements

This press release may contain forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995.  Forward- looking
statements, which may be based upon beliefs, expectations and assumptions of
Main Street'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 Main Street does not undertake any 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 Main Street 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 its
general business; (iv) changes in interest rates and prepayment rates of its
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 Main Street; 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 Main Street, its businesses and
factors that could materially affect its financial results, is included in its
filings with the Securities and Exchange Commission.

Special Note Concerning Goodwill and Other Intangible Assets

The Citizens excess purchase price has been allocated to goodwill and
identifiable intangible assets in accordance with current accounting
literature, to the extent that supportable documentation was available at June
30, 2005.  Such amounts are subject to minor adjustments in the near term as
additional analysis is performed or obtained from third party sources.

                      SELECTED FINANCIAL HIGHLIGHTS
                (dollars in thousands, except share data)

                           Three Months Ended             Six Months Ended
                    June 30,    June 30,    Mar. 31,    June 30,    June 30,
                      2005        2004        2005        2005        2004
  EARNINGS & PER
   SHARE DATA
  Basic earnings
   per share          $0.46       $0.39       $0.42       $0.88       $0.81
  Weighted average
   shares of common
   stock
   outstanding   10,341,054   9,505,500   9,453,196   9,897,125   9,507,493
  Diluted earnings
   per share          $0.45       $0.39       $0.41       $0.87       $0.80
  Weighted average
   shares of common
   stock and dilutive
   potential common
   shares
   outstanding   10,438,479   9,619,707   9,554,697   9,996,574   9,625,020
  Market price
   per share at
   period end(1)     $28.75      $30.90      $29.60      $28.75      $30.90
  Price to book
   ratio(1)          206.39%     262.09%     244.63%     206.39%     262.09%
  Price to earnings
   ratio(1,2)         17.53       19.07       18.85       17.53       19.07
  Cash dividends
   paid per share     $0.22       $0.21       $0.22       $0.44       $0.42
  Cash dividends
   declared per
   share              $0.22       $0.21       $0.22       $0.44       $0.42
  Book value per
   share             $13.93      $11.79      $12.10      $13.93      $11.79
  Tangible book
   value per
   share(3)          $11.42      $11.78      $12.10      $11.42      $11.78
  Ending number of
   common shares
   outstanding   10,276,275   9,473,116   9,460,870  10,276,275   9,473,116

  AVERAGE BALANCES
  Assets         $1,549,521  $1,197,343  $1,218,171  $1,383,846  $1,184,271
  Investment
   securities       314,511     389,655     346,215     330,363     373,558
  Gross loans(4)  1,013,451     707,694     771,499     892,475     702,131
  Earning assets  1,371,044   1,111,743   1,137,086   1,254,065   1,098,200
  Deposits        1,200,104     948,490     958,418   1,079,261     929,500
  Interest bearing
   liabilities    1,181,084     908,703     909,268   1,045,176     895,560
  Common
   shareholders'
   equity           143,733     112,809     114,639     129,186     112,935

  END OF PERIOD
   FINANCIAL DATA
  Tax equivalized
   net interest
   income           $13,400      $9,505     $10,117     $23,517     $19,277
  Gross loans(4)  1,026,591     717,591     774,602   1,026,591     717,591
  Allowance for
   loan losses       13,628      10,084       9,955      13,628      10,084
  Total assets
   under
   management     1,801,705   1,614,771   1,751,352   1,801,705   1,614,771

  PERFORMANCE RATIOS
  Return on average
   assets(5)           1.22%       1.25%       1.31%       1.26%       1.30%
  Return on
   average equity(5)  13.19%      13.26%      13.91%      13.52%      13.64%
  Net yield on
   average earning
   assets(5,6)         3.92%       3.44%       3.61%       3.78%       3.53%
  Interest spread
   (5,6)               3.59%       3.11%       3.21%       3.41%       3.21%
  Net overhead
   efficiency
   ratio(6,7)         56.70%      56.67%      56.55%      56.63%      55.81%
  Non-interest
   revenues as a
   % of total
   revenues(7,8)      28.33%      35.88%      32.77%      30.30%      35.49%
  Allowance for loan
   losses to loans     1.33%       1.41%       1.29%       1.33%       1.41%
  Allowance as a
   percentage of
   non-performing
   loans             360.15%     367.76%     401.90%     360.15%     367.76%
  Average loan to
   deposit ratio      84.45%      74.61%      80.50%      82.69%      75.54%
  Dividend payout
   ratio(2)           53.05%      51.23%      54.78%      53.05%      51.23%

  ASSET QUALITY
  Net charge-offs       $61        $197         $25         $86        $362
  Non-performing
   loans              3,784       2,742       2,477       3,784       2,742
  Other non-performing
   assets               168         126         140         168         126

  (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



                          Condensed Consolidated
                              Balance Sheets
                        (Unaudited, in thousands)

                                June 30,   March 31,  December 31,  June 30,
                                  2005       2005         2004        2004
  ASSETS
  Cash and cash equivalents     $55,873     $94,265     $64,928     $57,847
  Investments in debt and
   equity securities            364,246     322,362     358,726     385,373
  Mortgage loans held for
   sale                           2,768         577       1,005         890
  Loans, net of allowance
   for loan losses            1,010,195     764,070     761,227     706,617
  Premises and equipment         22,579      16,909      17,087      16,966
  Goodwill                       20,819           -           -           -
  Core deposit intangibles        5,004           -           -           -
  Accrued interest
   receivable                     8,770       6,853       6,570       6,615
  Other assets                   25,548      19,602      18,575      20,369

      Total assets           $1,515,802  $1,224,638  $1,228,118  $1,194,677

  LIABILITIES AND SHAREHOLDERS'
   EQUITY
  Liabilities:
  Deposits                   $1,144,164    $958,451    $974,577    $959,424
  Federal funds purchased,
   repurchase agreements and
   notes payable                121,854     108,818      96,900      82,144
  Federal Home Loan Bank
   advances and other
   borrowings                    89,077      27,571      29,882      29,920
  Accrued interest payable        3,471       2,889       2,601       1,987
  Other liabilities              14,073      12,402      10,183       9,509

      Total liabilities      $1,372,639  $1,110,131  $1,114,143  $1,082,984

  Total shareholders' equity    143,163     114,507     113,975     111,693

      Total liabilities and
       shareholders' equity  $1,515,802  $1,224,638  $1,228,118  $1,194,677



                        Consolidated Statements of
                                  Income
                        (Unaudited, in thousands)

                                   Quarter Ended:        Six Months Ended:
                                June 30,    June 30,    June 30,    June 30,
                                  2005        2004        2005        2004
  Interest Income:
    Loans and fees on loans     $15,913     $10,013     $27,318     $20,064
    Investments in debt and
     equity securities
      Taxable                     3,241       2,699       5,605       5,413
      Tax-exempt                    385         476         786         979
    Federal funds sold and
     interest bearing deposits      592          75         813         188
        Total interest
         income                  20,131      13,263      34,522      26,644

  Interest expense:
    Deposits                      5,403       3,344       9,003       6,546
    Federal funds purchased,
     repurchase agreements and
     notes payable                  751         276       1,258         557
    Federal Home Loan Bank
     advances and other
     borrowings                     787         398       1,173         797
        Total interest expense    6,941       4,018      11,434       7,900

        Net interest income      13,190       9,245      23,088      18,744

  Provision for loan losses         300         330         630         660

        Net interest income
         after provision for
         loan losses             12,890       8,915      22,458      18,084

  Non-interest income:
    Remittance processing         1,696       1,923       3,403       3,815
    Trust and brokerage fees      1,810       1,625       3,652       3,287
    Service charges on deposit
     accounts                       783         622       1,309       1,201
    Securities transactions, net   (155)         (2)         35           6
    Gain on sales of mortgage
     loans, net                     260         345         397         548
    Other                           664         659       1,277       1,462
        Total non-interest
         income                   5,058       5,172      10,073      10,319

  Non-interest expense:
    Salaries and employee
     benefits                     6,281       4,543      11,228       9,251
    Occupancy                       807         638       1,469       1,283
    Equipment                       675         647       1,281       1,280
    Data processing                 552         555       1,103       1,087
    Office supplies                 289         312         587         617
    Amortization expense- core
     deposit intangibles            218           -         218           -
    Service charges from
     correspondent banks            145         233         255         458
    Other                         1,587       1,390       2,862       2,539
        Total non-interest
         expense                 10,554       8,318      19,003      16,515

        Income before income
         taxes                    7,394       5,769      13,528      11,888

  Income taxes                    2,667       2,051       4,868       4,227
        Net income               $4,727      $3,718      $8,660      $7,661


DATASOURCE: Main Street Trust, Inc.



CONTACT:  Van A. Dukeman, President-CEO of Main Street Trust, Inc.,

[phone], Fax: [phone]



Web site:  http://www.mainstreettrust.com/ 

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