MBT Financial Corp. Announces Preliminary Second Quarter 2019 Highlights and Dividend Increase


MONROE, Mich., July 25, 2019 (GLOBE NEWSWIRE) -- MBT Financial Corp. (NASDAQ: MBTF), the parent company of Monroe Bank & Trust, reported a preliminary second quarter 2019 profit of $6,337,000, or $0.27 per share (basic and diluted). This represents a 28.1% increase compared to the $4,945,000 ($0.22 per share, basic, and $0.21 per share, diluted) recorded in the second quarter of 2018.

The company also announced that it will pay a quarterly dividend of $0.11 per common share on August 15, 2019 to shareholders of record as of August 8, 2019. This is an increase of $0.01 per share compared to the regular dividend paid in the same quarter last year.

The Net Interest Income for the second quarter of 2019 increased $1,024,000, or 9.5% compared to the second quarter of 2018 as the Net Interest Margin improved from 3.65% to 3.87%. Non-interest income in the second quarter of 2019 included a gain of $517,000 from a Bank Owned Life Insurance claim. Excluding the BOLI claim in the second quarter of 2019 and gains on the sales of Other Real Estate Owned in the second quarter of 2018, non-interest income increased 1.4%, from $3,886,000 to $3,942,000. Non-interest expense decreased $645,000, or 7.0%, in part because we have begun to achieve some of the cost reductions expected due to our upcoming merger with First Merchants Bank. Excluding the BOLI claim, net income for the second quarter of 2019 was $5,820,000, or $0.25 per share, basic and diluted.

Total assets of the company decreased $10.3 million, or 0.8%, compared to December 31, 2018, to $1.327 billion. Capital increased $7.8 million during the first half of 2019, total loans increased $0.3 million, and total deposits decreased $11.9 million, or 1.0%. The loan pipeline remains strong at $77 million, and the amount of unfunded loan commitments increased from $131 million at the end of 2018 to $139 million at the end of the second quarter of 2019.

H. Douglas Chaffin, President and CEO, commented, “We are making good progress toward closing our previously announced merger with First Merchants Corporation headquartered in Muncie, Indiana. The merger was announced in October, 2018 and is expected to close during the third quarter of 2019. This merger will provide tremendous benefits to our customers, shareholders and communities, and we look forward to continuing the legacy of exceptional customer service, local responsiveness, and strong community engagement that has defined Monroe Bank and Trust for 160 years.”

About the Company:
MBT Financial Corp. (NASDAQ:MBTF), a bank holding company headquartered in Monroe, Michigan, is the parent company of Monroe Bank & Trust. Founded in 1858, Monroe Bank & Trust helps customers’ remarkable stories unfold through an uncommon, optimistic culture. As one of the largest community banks in Southeast Michigan, with over $1.3 billion in assets, this full-service bank offers a complete range of business and personal accounts, mobile and online banking, offices and ATMs across Monroe and Wayne Counties, credit and mortgage options, investment and retirement services and award-winning community outreach. The bank believes in its customers, helping them with everything from day-to-day needs to long-term goals, and is ranked fourth among all Michigan banks for total trust assets.  The bank believes in its communities, supporting over 300 organizations with sponsorships and also more than 8,000 employee volunteer hours through the Monroe Bank & Trust ENLIST Volunteerism program. The bank believes in the power of knowledge, helping thousands of students and adults thrive through the Monroe Bank & Trust Financial Education program.  Monroe Bank & Trust is proud to be a trusted partner to communities and clients, and an employer of choice.  We are Monroe Bank & Trust, and we believe in the story of you.

On October 10, 2018, the Company announced that it signed a definitive agreement to merge with First Merchants Corporation (NASDAQ: FRME), headquartered in Muncie, Indiana. The merger is expected to close in the third quarter of 2019, so the Company will not be providing its typical detailed earnings announcement and investor conference call. First Merchants announced their second quarter results and hosted a conference call earlier today. For information about First Merchants and the merger, and to access a replay of their call, please see the Investor Relations link on www.firstmerchants.com.

For more information about Monroe Bank & Trust, visit www.monroe.bank or contact:
   
Doug Chaffin    John Skibski 
President & CEO Executive Vice President & CFO
(734) 384-8123  (734) 242-1879
doug.chaffin@monroe.bank  john.skibski@monroe.bank 
   

       

MBT FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
           
    Quarter Ended June 30, Six Months Ended June 30,
Dollars in thousands (except per share data) 2019  2018   2019   2018 
Interest Income              
Interest and fees on loans$  9,714 $  8,736  $  19,285  $  16,953 
Interest on investment securities-              
 Tax-exempt   171    443     467     847 
 Taxable   380    2,087     1,554     4,297 
Interest on balances due from banks   2,213    58     3,422     183 
   Total interest income   12,478    11,324     24,728     22,280 
                  
Interest Expense              
Interest on deposits   557    400     1,125     814 
Interest on borrowed funds   64    91     128     97 
   Total interest expense   621    491     1,253     911 
                  
Net Interest Income   11,857    10,833     23,475     21,369 
Provision For (Recovery Of) Loan Losses   -     -      -      (100)
                  
Net Interest Income After              
Provision For (Recovery Of) Loan Losses   11,857    10,833     23,475     21,469 
                  
Other Income              
Income from wealth management services   1,197    1,178     2,358     2,363 
Service charges and other fees   855    955     1,677     1,901 
Debit Card income   799    786     1,500     1,506 
Net gain on sales of securities   -     (1)    (11,646)    (102)
Net gain (loss) on other real estate owned   4    517     13     536 
Origination fees on mortgage loans sold   119    92     188     154 
Bank Owned Life Insurance income   851    349     1,189     702 
Other    634    527     1,293     1,127 
   Total other income   4,459    4,403     (3,428)    8,187 
                  
Other Expenses              
Salaries and employee benefits   5,305    5,371     11,369     11,333 
Occupancy expense   654    620     1,383     1,341 
Equipment expense   896    874     1,809     1,667 
Marketing expense   189    467     481     844 
Professional fees   459    592     1,302     1,186 
EFT/ATM expense   297    288     588     547 
Other real estate owned expense   4    21     26     36 
FDIC deposit insurance assessment   91    92     180     199 
Bonding and other insurance expense   73    137     502     269 
Telephone expense   78    74     158     149 
Other    495    650     1,053     1,407 
   Total other expenses   8,541    9,186     18,851     18,978 
                  
Profit Before Income Taxes   7,775    6,050     1,196     10,678 
Income Tax Expense   1,438    1,105     -      1,831 
Net Profit$  6,337 $  4,945  $  1,196  $  8,847 
                  
Basic Earnings Per Common Share$  0.27 $  0.22  $  0.05  $  0.39 
                  
Diluted Earnings Per Common Share$  0.27 $  0.21  $  0.05  $  0.38 
                  
Dividends Declared Per Common Share$  0.10 $  0.07  $  0.20  $  0.73 
           

 

MBT FINANCIAL CORP.
CONSOLIDATED BALANCE SHEETS
      
      
   (Unaudited)  
Dollars in thousandsJune 30, 2019 December 31, 2018
Assets       
Cash and Cash Equivalents       
 Cash and due from banks       
  Non-interest bearing$16,934  $17,058 
  Interest bearing 321,684   34,784 
  Total cash and cash equivalents 338,618   51,842 
          
Interest Bearing Time Deposits in Other Banks 100   10,796 
Securities - Available for Sale 116,440   401,613 
Equity Securities 7,478   7,415 
Loans held for sale -   488 
          
Loans 769,413   768,660 
Allowance for Loan Losses (7,623)  (7,771)
Loans - Net 761,790   760,889 
          
Accrued interest receivable and other assets 15,445   16,743 
Other Real Estate Owned 27   692 
Bank Owned Life Insurance 59,313   59,563 
Premises and Equipment - Net 27,336   26,850 
  Total assets$1,326,547  $1,336,891 
          
Liabilities       
Deposits:       
 Non-interest bearing$309,309  $297,704 
 Interest-bearing 861,691   885,206 
  Total deposits 1,171,000   1,182,910 
          
Federal Home Loan Bank advances 10,000   10,000 
Accrued interest payable and other liabilities 10,110   16,314 
  Total liabilities 1,191,110   1,209,224 
          
Shareholders' Equity       
Common stock (no par value) 23,658   23,453 
Retained Earnings 110,510   113,921 
Accumulated other comprehensive loss 1,269   (9,707)
  Total shareholders' equity 135,437   127,667 
  Total liabilities and shareholders' equity$1,326,547  $1,336,891