Main Street Trust Announces First Quarter 2005 Earnings

Main Street Trust Announces First Quarter 2005 Earnings 


CHAMPAIGN, Ill., April 25  /PRNewswire-FirstCall/ -- Main Street Trust, Inc.
(OTC:MSTI) (BULLETIN BOARD: MSTI)  reported earnings of $0.41 in unaudited
consolidated net income per diluted share for the quarter ended March 31, 2005,
compared to $0.41 per diluted share for the same period in 2004. Consolidated
net income for the quarter totaled $3.933 million compared to $3.943 million
for the same period in 2004.

Van A. Dukeman, President and CEO stated that, "Main Street's interest spread
(the difference between what we earn on our loans and investments and what we
pay our depositors and deposit-like instruments) improved seven (7) basis
points in the first quarter.  Steady growth in loans, deposits and wealth
management fees highlighted the first quarter performance in our three major
divisions:  Commercial, Retail and Wealth Management."

Dukeman further stated that, "In addition, Main Street completed its
acquisition of Citizens First Financial Corp. (approximately $328 million in
total assets) headquartered in Bloomington, Illinois on April 1, 2005.  Main
Street now owns banking operations in four major downstate Illinois markets,
plus our retail payment processing subsidiary, FirsTech, Inc., in Decatur.  We
look forward to the full integration of Citizens into our Main Street Bank &
Trust subsidiary later this year and the growth prospects that such a merger
will provide to your company."

Cash Dividend Paid

The Company distributed a $0.22 per share cash dividend on April 22, 2005,
payable to shareholders of record on March 31, 2005.  This is the first
quarterly cash dividend declared in 2005, making total dividends paid to-date
$0.44 per share for 2005, compared to $0.42 per share for the same period in
2004.

Annual Meeting

Main Street Trust, Inc. will hold its Annual Meeting of Shareholders on
Wednesday, May 11, 2005 at 6:00 pm at The Virginia Theatre, 203 W. Park Avenue,
Champaign, Illinois.  Proxy information is being processed by the Company's
Transfer Agent, American Stock Transfer & Trust Company.

Franchise

Main Street Trust, Inc. is a diversified financial services company with $1.55
billion in assets as of April 1, 2005, providing financial services to more
than 60,000 customers at 23 locations in Central Illinois.  Main Street Bank &
Trust offers online banking ( http://www.mainstreettrust.com/ ) and surcharge
free ATM access at 78 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 40
million items per year.

On April 1, 2005, Main Street Trust completed its acquisition of Citizens First
Financial Corp. of Bloomington, Illinois.  Shareholders of Citizens First
Financial that submit their election forms to the transfer agent by May 27,
2005, will receive 1.051 shares of Main Street Trust, Inc. common stock for
every one share of Citizens or $35.00 per share for cash elections. Further
information is available by contacting Main Street Trust's Corporate Secretary
at 100 W. University, Champaign, Illinois 61824-4028, telephone [phone].

Special Note Concerning Forward-Looking Statements

This document 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,
including the proposed acquisition of Citizens; (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.

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

                                                 Three Months Ended
                                            Mar. 31,    Dec. 31,    Mar. 31,
                                              2005        2004        2004
  EARNINGS & PER SHARE DATA
    Basic earnings per share                  $0.42       $0.38       $0.41
    Weighted average shares of common
     stock outstanding                    9,453,196   9,448,657   9,509,487
    Diluted earnings per share                $0.41       $0.37       $0.41
    Weighted average shares of common
     stock and dilutive potential
       common shares outstanding          9,554,697   9,554,364   9,630,341
    Market price per share at period
     end(1)                                  $29.60      $29.00      $30.60
    Price to book ratio(1)                  244.63%     240.46%     254.15%
    Price to earnings ratio(1),(2)            18.85       18.59       18.89
    Cash dividends paid per share             $0.22       $0.21       $0.21
    Cash dividends declared per share         $0.22       $0.22       $0.21
    Book value per share                     $12.10      $12.06      $12.04
    Tangible book value per share(3)         $12.10      $12.06      $12.03
    Ending number of common shares
     outstanding                          9,460,870   9,448,990   9,534,243

  AVERAGE BALANCES
    Assets                               $1,218,171  $1,239,921  $1,171,199
    Investment securities                   346,215     364,416     357,461
    Gross loans(4)                          771,499     751,631     696,568
    Earning assets                        1,137,086   1,156,435   1,084,657
    Deposits                                958,418     992,181     910,510
    Interest bearing liabilities            909,268     943,950     882,417
    Common shareholders' equity             114,639     113,616     113,061

  END OF PERIOD FINANCIAL DATA
    Net interest income (tax equivalent)    $10,117     $10,160      $9,772
    Gross loans(4)                          774,602     771,882     703,340
    Allowance for loan losses                 9,955       9,650       9,951
    Total assets under management         1,751,352   1,764,562   1,556,158

  PERFORMANCE RATIOS
    Return on average assets(5)               1.31%       1.14%       1.35%
    Return on average equity(5)              13.91%      12.47%      14.03%
    Net yield on average earning
     assets(5),(6)                            3.61%       3.50%       3.62%
    Interest spread(5),(6)                    3.21%       3.14%       3.29%
    Net overhead efficiency ratio(6),(7)     56.55%      60.55%      54.97%
    Non-interest revenues as a % of
     total revenues(7),(8)                   32.77%      31.55%      35.11%
    Allowance for loan losses to loans        1.29%       1.25%       1.41%
    Allowance as a percentage of non-
     performing loans                       401.90%     431.57%     391.16%
    Average loan to deposit ratio            80.50%      75.76%      76.50%
    Dividend payout ratio(2)                 54.78%      54.49%      50.62%

  ASSET QUALITY
    Net charge-offs                             $25        $423        $165
    Non-performing loans                      2,477       2,236       2,544
    Other non-performing assets                 140          33         198

  (1) Closing price at end of period
  (2) Last 12-months earnings
  (3) Net of goodwill
  (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)      March 31,      December 31,   March 31,
                                    2005           2004         2004
  ASSETS
  Cash and cash equivalents       $94,265        $64,928       $58,002
  Investments in debt and
   equity securities              322,362        358,726       391,526
  Mortgage loans held for sale        577          1,005         2,147
  Loans, net of allowance
   for loan losses                764,070        761,227       691,242
  Premises and equipment           16,909         17,087        17,104
  Accrued interest receivable       6,853          6,570         6,787
  Other assets                     19,602         18,575        15,794

      Total assets             $1,224,638     $1,228,118    $1,182,602

  LIABILITIES AND
   SHAREHOLDERS' EQUITY
  Liabilities:
  Deposits                       $958,451       $974,577      $910,221
  Federal funds purchased,
   repurchase agreements and
   notes payable                  108,818         96,900       116,152
  Federal Home Loan Bank
   advances and other
   borrowings                      27,571         29,882        29,939
  Accrued interest payable          2,889          2,601         1,773
  Other liabilities                12,402         10,183         9,746

      Total liabilities        $1,110,131     $1,114,143    $1,067,831

  Total shareholders' equity      114,507        113,975       114,771

      Total liabilities and
       shareholders' equity    $1,224,638     $1,228,118    $1,182,602


    Consolidated Statements of Income
        (Unaudited, in thousands)                Three Months Ended:
                                        March 31,   December 31,  March 31,
                                           2005         2004        2004
  Interest Income:
    Loans and fees on loans              $11,405      $10,997     $10,051
    Investments in debt and equity
     securities
      Taxable                              2,364        2,820       2,714
      Tax-exempt                             401          420         503
    Federal funds sold and interest
     bearing deposits                        221          261         113
        Total interest income             14,391       14,498      13,381

  Interest expense:
    Deposits                               3,600        3,783       3,202
    Federal funds purchased, repurchase
     agreements and notes payable            507          378         281
    Federal Home Loan Bank advances and
     other borrowings                        386          407         399
        Total interest expense             4,493        4,568       3,882

        Net interest income                9,898        9,930       9,499

  Provision for loan losses                  330          110         330

        Net interest income after
         provision for loan losses         9,568        9,820       9,169

  Non-interest income:
    Remittance processing                  1,707        1,566       1,892
    Trust and brokerage fees               1,842        1,661       1,662
    Service charges on deposit accounts      526          599         579
    Securities transactions, net             190           (6)          8
    Gain on sales of mortgage loans, net     137          220         203
    Other                                    613          530         803
        Total non-interest income          5,015        4,570       5,147

  Non-interest expense:
    Salaries and employee benefits         4,947        4,911       4,708
    Occupancy                                662          701         645
    Equipment                                606          626         633
    Data processing                          551          650         532
    Office supplies                          298          360         305
    Service charges from correspondent
     banks                                   110          129         225
    Other                                  1,275        1,545       1,149
        Total non-interest expense         8,449        8,922       8,197

        Income before income taxes         6,134        5,468       6,119

  Income taxes                             2,201        1,906       2,176
        Net income                        $3,933       $3,562      $3,943


DATASOURCE: Main Street Trust, Inc.



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

[phone], fax, [phone]



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

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