MONROE, Mich., Oct. 21, 2008 (GLOBE NEWSWIRE) -- MBT Financial Corp., (Nasdaq:MBTF), the parent company of Monroe Bank & Trust, reported third quarter 2008 net income of $324,000, or $0.02 per diluted share, compared to the $3.2 million, or $0.20 per diluted share earned in the third quarter of 2007. Net income for the nine months ended September 30, 2008 was $4.7 million, or $0.29 per diluted share, compared to $10.4 million, or $0.63 per diluted share in the nine months of 2007.
H. Douglas Chaffin, President and CEO, commented, "Due to the poor economic conditions and decreasing real estate values, we increased our provision for loan losses and wrote down the values of some foreclosed residential real estate development properties in the third quarter. The provision for loan losses increased from $1 million in the third quarter of 2007 to $4.1 million this year, and losses and write downs of Other Real Estate Owned increased from $12,000 in the third quarter of 2007 to $2.2 million in the third quarter of 2008. Our Allowance for Loan Losses is now $18.4 million, or 1.88% of loans. Non performing assets (NPAs) decreased slightly during the quarter from $62.3 million to $59.9 million.
Mr. Chaffin further commented on the Company's earnings for the quarter. "Net Interest Income increased $418,000 compared to the third quarter of 2007 as the net interest margin improved from 3.08% to 3.24%. Non interest income, excluding securities gains, was unchanged at $3.9 million due to the low level of mortgage loan origination activity. Non interest expenses, excluding OREO losses, decreased slightly compared to the same period a year ago.
"Finally, after the third quarter ended, we acquired the deposits of Main Street Bank in Northville and Plymouth, Michigan from the FDIC when they were closed by state regulators. This adds two branches, 4 ATMs, and over $40 million in core deposits to our company. So far, integration is progressing well, and we look forward to bringing our style of community banking and wealth management to the Northville and Plymouth areas."
Conference Call
MBT Financial Corp. will hold a conference call to discuss third quarter results on Wednesday, October 22, at 10:00 a.m. Eastern Time. The call will be webcast and can be accessed at the Investor Relations/Corporate Profile page of MBT Financial Corp.'s web site www.mbandt.com. The call can also be accessed by calling (800) 860-2442. The event will be archived on the Company's web site and available for three months following the call.
About the Company
MBT Financial Corp. (Nasdaq:MBTF), a single bank holding company headquartered in Monroe, Michigan, is the parent company of Monroe Bank & Trust (MBT).
Founded in 1858, MBT is one of the largest full service community banks in Southeast Michigan, with more than $1.5 billion in assets, offering personal and business products and services, and complete credit options. MBT's Wealth Management Group is one of the area's largest trust departments with over $800 Million in assets under management. With 27 offices, 45 ATMs, PhoneLink telephone banking and eLink online banking, MBT prides itself on an incomparable level of service and access for its customers. Visit MBT's web site at www.MBandT.com.
Forward-Looking Statements
Certain statements contained herein are not based on historical facts and are "forward-looking statements" within the meaning of Section 21A of the Securities Exchange Act of 1934. Forward-looking statements which are based on various assumptions (some of which are beyond the Company's control), may be identified by reference to a future period or periods, or by the use of forward-looking terminology, such as "may," "will," "believe," "expect," "estimate," "anticipate," "continue," or similar terms or variations on those terms, or the negative of these terms. Actual results could differ materially from those set forth in forward-looking statements, due to a variety of factors, including, but not limited to, those related to the economic environment, particularly in the market areas in which the Company operates, competitive products and pricing, fiscal and monetary policies of the U.S. Government, changes in government regulations affecting financial institutions, including regulatory fees and capital requirements, changes in prevailing interest rates, acquisitions and the integration of acquired businesses, credit risk management, asset/liability management, change in the financial and securities markets, including changes with respect to the market value of our financial assets, the availability of and costs associated with sources of liquidity, and the ability of the Company to resolve or dispose of problem loans. The Company undertakes no obligation to update or clarify forward-looking statements, whether as a result of new information, future events or otherwise.
MBT FINANCIAL CORP.
CONSOLIDATED FINANCIAL HIGHLIGHTS - UNAUDITED
(dollars in thousands except
per share data) Quarterly
-------------------------------------------------------
2008 2008 2008 2007 2007
3rd Qtr 2nd Qtr 1st Qtr 4th Qtr 3rd Qtr
---------- ---------- ---------- ---------- ----------
EARNINGS
Net
interest
income $ 11,086 $ 11,127 $ 10,453 $ 10,131 $ 10,668
FTE Net
interest
income $ 11,417 $ 11,463 $ 10,784 $ 10,232 $ 11,011
Provision
for loan
and lease
losses $ 4,100 $ 2,700 $ 1,200 $ 8,907 $ 1,000
Non-
interest
income $ 4,265 $ 3,858 $ 3,962 $ 3,824 $ 3,928
Non-
interest
expense $ 11,365 $ 10,163 $ 9,698 $ 9,601 $ 9,242
Net income
(loss) $ 324 $ 1,718 $ 2,647 $ (2,706) $ 3,181
Basic
earnings
(loss)
per share $ 0.02 $ 0.11 $ 0.16 $ (0.17) $ 0.20
Diluted
earnings
(loss)
per
share $ 0.02 $ 0.11 $ 0.16 $ (0.17) $ 0.20
Average
shares
outstand-
ing 16,136,402 16,130,806 16,127,047 16,135,339 16,288,696
Average
diluted
shares
outstand-
ing 16,163,863 16,162,181 16,139,073 16,145,958 16,310,279
PERFORMANCE
RATIOS
Return on
average
assets 0.09% 0.45% 0.69% -0.70% 0.83%
Return on
average
common
equity 1.04% 5.34% 8.24% -8.05% 9.55%
Base Margin 3.08% 3.05% 2.84% 2.74% 2.90%
FTE
Adjustment 0.09% 0.09% 0.09% 0.03% 0.10%
Loan Fees 0.07% 0.07% 0.07% 0.06% 0.08%
---------- ---------- ---------- ---------- ----------
FTE Net
Interest
Margin 3.24% 3.21% 3.00% 2.83% 3.08%
Efficiency
ratio 56.66% 61.24% 64.51% 60.16% 61.06%
Full-time
equivalent
employees 366 384 380 404 426
CAPITAL
Average
equity to
average
assets 8.19% 8.42% 8.36% 8.66% 8.69%
Book value
per share $ 7.46 $ 7.52 $ 7.94 $ 7.90 $ 8.15
Cash
dividend
per share $ 0.09 $ 0.18 $ 0.18 $ 0.18 $ 0.18
ASSET
QUALITY
Loan
Charge-
Offs $ 3,954 $ 2,607 $ 3,955 $ 3,204 $ 1,013
Loan
Recover-
ies $ 169 $ 317 $ 216 $ 195 $ 256
---------- ---------- ---------- ---------- ----------
Net Charge
-Offs $ 3,785 $ 2,290 $ 3,739 $ 3,009 $ 757
Allowance
for loan
and lease
losses $ 18,408 $ 18,093 $ 17,683 $ 20,222 $ 14,323
Nonaccrual
Loans $ 34,892 $ 38,115 $ 37,814 $ 30,459 $ 26,440
Loans 90
days past
due $ 119 $ 109 $ 94 $ 102 $ 105
Restruc-
tured
loans $ 6,685 $ 6,023 $ 1,679 $ 3,367 $ 938
---------- ---------- ---------- ---------- ----------
Total non
perform-
ing
loans $ 41,696 $ 44,247 $ 39,587 $ 33,928 $ 27,483
Other real
estate
owned &
other
assets $ 17,893 $ 18,065 $ 15,819 $ 12,565 $ 6,389
---------- ---------- ---------- ---------- ----------
Total non
perform-
ing
assets $ 59,589 $ 62,312 $ 55,406 $ 46,493 $ 33,872
Problem
Loans
Still
Perform-
ing $ 56,156 $ 41,188 $ 40,521 $ 41,022 $ 32,822
---------- ---------- ---------- ---------- ----------
Total
Problem
Assets $ 115,745 $ 103,500 $ 95,927 $ 87,515 $ 66,694
Net loan
charge-
offs to
average
loans 1.54% 0.93% 1.51% 1.19% 0.30%
Allowance
for losses
to total
loans 1.88% 1.83% 1.78% 2.02% 1.42%
Non
performing
loans to
gross
loans 4.25% 4.47% 3.99% 3.39% 2.72%
Non
performing
assets to
total
assets 3.96% 4.04% 3.56% 2.99% 2.17%
Allowance
to non
performing
loans 44.15% 40.89% 44.67% 59.60% 52.12%
END OF
PERIOD
BALANCES
Loans and
leases $ 981,038 $ 989,839 $ 991,402 $1,002,259 $1,008,875
Total
earning
assets $1,383,659 $1,421,653 $1,435,370 $1,440,317 $1,439,366
Total
assets $1,505,709 $1,542,747 $1,555,450 $1,556,806 $1,560,234
Deposits $1,080,194 $1,065,770 $1,095,605 $1,109,980 $1,110,074
Interest
Bearing
Liabil-
ities $1,234,705 $1,267,718 $1,286,289 $1,273,665 $1,273,695
Share-
holders'
equity $ 120,413 $ 121,348 $ 128,081 $ 127,447 $ 131,651
Total
Shares
Outstand-
ing 16,139,538 16,132,513 16,128,321 16,124,997 16,148,863
AVERAGE
BALANCES
Loans and
leases $ 980,466 $ 992,618 $ 998,060 $1,002,948 $1,010,604
Total
earning
assets $1,398,768 $1,432,923 $1,444,037 $1,436,545 $1,419,329
Total
assets $1,505,823 $1,536,884 $1,545,048 $1,539,446 $1,520,222
Deposits $1,076,734 $1,076,046 $1,109,664 $1,094,346 $1,086,050
Interest
Bearing
Liabil-
ities $1,245,873 $1,273,052 $1,283,990 $1,264,772 $1,248,691
Share-
holders'
equity $ 123,355 $ 129,353 $ 129,175 $ 133,363 $ 132,088
Year to Date
(dollars in thousands except per share --------------------------
data) 2008 2007
----------- -----------
EARNINGS
Net interest income $ 32,666 $ 32,638
FTE Net interest income $ 33,664 $ 33,725
Provision for loan and lease losses $ 8,000 $ 2,500
Non-interest income $ 12,085 $ 11,810
Non-interest expense $ 31,226 $ 27,633
Net income (loss) $ 4,689 $ 10,419
Basic earnings (loss) per share $ 0.29 $ 0.63
Diluted earnings (loss) per share $ 0.29 $ 0.63
Average shares outstanding 16,131,436 16,509,813
Average diluted shares outstanding 16,158,897 16,531,396
PERFORMANCE RATIOS
Return on average assets 0.41% 0.91%
Return on average common equity 4.92% 10.27%
Base Margin 2.99% 2.98%
FTE Adjustment 0.09% 0.10%
Loan Fees 0.07% 0.07%
----------- -----------
FTE Net Interest Margin 3.15% 3.15%
Efficiency ratio 60.75% 60.20%
Full-time equivalent employees 374 427
CAPITAL
Average equity to average assets 8.32% 8.88%
Book value per share $ 7.46 $ 8.15
Cash dividend per share $ 0.45 $ 0.54
ASSET QUALITY
Loan Charge-Offs $ 10,516 $ 3,183
Loan Recoveries $ 702 $ 1,242
----------- -----------
Net Charge-Offs $ 9,814 $ 1,941
Allowance for loan and lease losses $ 18,408 $ 14,323
Nonaccrual Loans $ 34,892 $ 26,440
Loans 90 days past due $ 119 $ 105
Restructured loans $ 6,685 $ 938
----------- -----------
Total non performing loans $ 41,696 $ 27,483
Other real estate owned & other
assets $ 17,893 $ 6,389
----------- -----------
Total non performing assets $ 59,589 $ 33,872
Problem Loans Still Performing $ 56,156 $ 32,822
----------- -----------
Total Problem Assets $ 115,745 $ 66,694
Net loan charge-offs to average loans 1.32% 0.26%
Allowance for losses to total loans 1.88% 1.42%
Non performing loans to gross loans 4.25% 2.72%
Non performing assets to total assets 3.96% 2.17%
Allowance to non performing loans 44.15% 52.12%
END OF PERIOD BALANCES
Loans and leases $ 981,038 $ 1,008,875
Total earning assets $ 1,383,659 $ 1,439,366
Total assets $ 1,505,709 $ 1,560,234
Deposits $ 1,080,194 $ 1,110,074
Interest Bearing Liabilities $ 1,234,705 $ 1,273,695
Shareholders' equity $ 120,413 $ 131,651
Total Shares Outstanding 16,139,538 16,148,863
AVERAGE BALANCES
Loans and leases $ 990,345 $ 999,461
Total earning assets $ 1,425,146 $ 1,428,488
Total assets $ 1,529,166 $ 1,526,893
Deposits $ 1,087,442 $ 1,087,236
Interest Bearing Liabilities $ 1,267,559 $ 1,249,525
Shareholders' equity $ 127,280 $ 135,641
MBT FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
------------------------------------------------------------------
Quarter Ended
Dollars in thousands (except per share September 30,
data) 2008 2007
-----------------------------------------------------------------
Interest Income
Interest and fees on loans $ 15,689 $ 18,116
Interest on investment securities-
Tax-exempt 844 875
Taxable 4,558 4,541
Interest on federal funds sold 22 25
-----------------------------------------------------------------
Total interest income 21,113 23,557
-----------------------------------------------------------------
Interest Expense
Interest on deposits 6,263 8,277
Interest on borrowed funds 3,764 4,612
-----------------------------------------------------------------
Total interest expense 10,027 12,889
-----------------------------------------------------------------
Net Interest Income 11,086 10,668
Provision For Loan Losses 4,100 1,000
-----------------------------------------------------------------
Net Interest Income After
Provision For Loan Losses 6,986 9,668
-----------------------------------------------------------------
Other Income
Income from wealth management services 1,087 1,171
Service charges and other fees 1,683 1,599
Net gain (loss) on sales of securities 323 4
Origination fees on mortgage loans sold 73 169
Bank Owned Life Insurance income 355 329
Other 744 656
-----------------------------------------------------------------
Total other income 4,265 3,928
-----------------------------------------------------------------
Other Expenses
Salaries and employee benefits 5,090 5,363
Occupancy expense 801 845
Equipment expense 804 780
Marketing expense 297 426
Professional fees 401 369
Net loss on other real estate owned 2,215 12
Other 1,757 1,447
-----------------------------------------------------------------
Total other expenses 11,365 9,242
-----------------------------------------------------------------
Income Before Income Taxes (114) 4,354
Income Tax Expense (Benefit) (438) 1,173
-----------------------------------------------------------------
Net Income $ 324 $ 3,181
-----------------------------------------------------------------
Basic Earnings Per Common Share $ 0.02 $ 0.20
-----------------------------------------------------------------
Diluted Earnings Per Common Share $ 0.02 $ 0.20
-----------------------------------------------------------------
Dividends Declared Per Common Share $ 0.09 $ 0.18
-----------------------------------------------------------------
MBT FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
-----------------------------------------------------------------
Nine Months Ended
September 30,
Dollars in thousands (except per share data) 2008 2007
-----------------------------------------------------------------
Interest Income
Interest and fees on loans $ 47,888 $ 53,628
Interest on investment securities-
Tax-exempt 2,477 2,755
Taxable 14,312 14,038
Interest on federal funds sold 23 141
-----------------------------------------------------------------
Total interest income 64,700 70,562
-----------------------------------------------------------------
Interest Expense
Interest on deposits 20,122 24,213
Interest on borrowed funds 11,912 13,711
-----------------------------------------------------------------
Total interest expense 32,034 37,924
-----------------------------------------------------------------
Net Interest Income 32,666 32,638
Provision For Loan Losses 8,000 2,500
-----------------------------------------------------------------
Net Interest Income After
Provision For Loan Losses 24,666 30,138
-----------------------------------------------------------------
Other Income
Income from trust services 3,333 3,389
Service charges and other fees 4,795 4,698
Net gain (loss) on sales of securities 371 96
Origination fees on mortgage loans sold 357 562
Bank Owned Life Insurance income 985 959
Other 2,244 2,106
-----------------------------------------------------------------
Total other income 12,085 11,810
-----------------------------------------------------------------
Other Expenses
Salaries and employee benefits 16,113 16,411
Occupancy expense 2,712 2,569
Equipment expense 2,480 2,475
Marketing expense 894 1,047
Professional fees 1,325 1,145
Net loss on other real estate owned 2,604 22
Other 5,098 3,964
-----------------------------------------------------------------
Total other expenses 31,226 27,633
-----------------------------------------------------------------
Income Before Income Taxes 5,525 14,315
Income Tax Expense (Benefit) 836 3,896
-----------------------------------------------------------------
Net Income $ 4,689 $ 10,419
-----------------------------------------------------------------
Basic Earnings Per Common Share $ 0.29 $ 0.63
-----------------------------------------------------------------
Diluted Earnings Per Common Share $ 0.29 $ 0.63
-----------------------------------------------------------------
Dividends Declared Per Common Share $ 0.45 $ 0.54
-----------------------------------------------------------------
MBT FINANCIAL CORP.
CONSOLIDATED BALANCE SHEETS
September. 30, December 31,
2008 2007
Dollars in thousands (Unaudited)
------------------------------------------------------------------
Assets
Cash and Cash Equivalents
Cash and due from banks $ 22,527 $ 25,113
Federal funds sold 5,300 --
------------------------------------------------------------------
Total cash and cash equivalents 27,827 25,113
Securities - Held to Maturity 38,248 44,734
Securities - Available for Sale 345,387 380,238
Federal Home Loan Bank stock - at cost 13,086 13,086
Loans held for sale 267 1,431
Loans - Net 962,363 980,606
Accrued interest receivable and other
assets 41,658 36,370
Bank Owned Life Insurance 45,083 42,509
Premises and Equipment - Net 31,790 32,719
------------------------------------------------------------------
Total assets $ 1,505,709 $ 1,556,806
------------------------------------------------------------------
Liabilities
Deposits:
Non-interest bearing $ 136,989 $ 141,115
Interest-bearing 943,205 968,865
------------------------------------------------------------------
Total deposits 1,080,194 1,109,980
Federal Home Loan Bank advances 261,500 256,500
Federal funds purchased -- 13,300
Repurchase agreements 30,000 35,000
Interest payable and other liabilities 13,602 14,579
------------------------------------------------------------------
Total liabilities 1,385,296 1,429,359
------------------------------------------------------------------
Shareholders' Equity
Common stock (no par value) -- --
Retained Earnings 127,621 129,917
Accumulated other comprehensive income (7,208) (2,470)
------------------------------------------------------------------
Total shareholders' equity 120,413 127,447
------------------------------------------------------------------
Total liabilities and shareholders'
equity $ 1,505,709 $ 1,556,806
------------------------------------------------------------------