MONROE, Mich., Oct. 17, 2007 (PRIME NEWSWIRE) -- MBT Financial Corp. (Nasdaq:MBTF), the parent company of Monroe Bank & Trust, reported net income for the third quarter of 2007 of $3.2 million, or $0.20 per diluted share, compared to a net loss of $1.1 million, or $0.07 per diluted share in the third quarter of 2006. For the first nine months of 2007, MBT reported net income of $10.4 million, or $0.63 per diluted share, compared to the $32,000, or $0.00 per diluted share earned in the first nine months of 2006. The 2006 results were negatively impacted by charges related to an investment portfolio restructuring in the second quarter and a sale of problem assets in the third quarter.
H. Douglas Chaffin, President and CEO, commented, "During the flattening and inversion of the yield curve over the last two years, we intentionally restricted our asset growth in order to manage our interest rate risk. Recent changes in the interest rate environment helped us increase our deposits this quarter. However, the weak Michigan economy and the soft housing market continue to challenge us as we look for quality assets, making the outlook for earnings growth poor.
"Although we sold a large amount of problem assets in the third quarter of 2006, asset quality continues to be a concern. Non performing assets (NPAs) increased from $24.6 million to $33.9 million during the third quarter and total problem assets increased from $59.4 million to $66.7 million. Net charge offs during the quarter were 0.30% of loans, annualized, and we increased our allowance for loan losses from 1.34% of loans to 1.42% over the last twelve months. In addition, we have been active in our capital management by purchasing our stock while the market values for financial stocks are at low levels. We have continued to provide value to our shareholders through our quarterly dividend, which is providing an annualized return in excess of 6.0% based on the price of our stock at the end of the third quarter."
Mr. Chaffin further commented on the Company's earnings for the quarter. "Net Interest Income decreased $700,000 compared to the third quarter of 2006 due to the lower net interest margin and smaller amount of average earning assets. While opportunities for growth in net interest income remain weak, we are increasing our focus on increasing non interest income and controlling non interest expenses. Non interest income, excluding securities transactions, increased 5.6% compared to the third quarter of 2006 and non interest expenses, net of OREO transactions, increased 4.6%."
Total assets increased $44.2 million (2.9%) during the quarter to $1.56 billion at September 30, 2007. Total loans increased $6.6 million (0.7%) during the quarter and deposits increased $31.6 million (2.9%). Shareholders' equity was $131.7 million, an increase of $0.6 million (0.5%) since last quarter. Total shares outstanding decreased 1.4% as the Company repurchased 233,062 shares during the third quarter.
Conference Call
MBT Financial Corp. will hold a conference call to discuss third quarter results on Thursday, October 18, 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 (877) 407-8031. 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 26 offices, 41 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.
The MBT Financial Corp. logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=4214
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
Quarterly
(dollars ----------------------------------------------------------
in thousands 2007 2007 2007 2006 2006
except per 3rd Qtr 2nd Qtr 1st Qtr 4th Qtr 3rd Qtr
share data)---------- ---------- ---------- ---------- ----------
EARNINGS
Net
interest
income $ 10,668 $ 10,787 $ 11,183 $ 11,165 $ 11,380
FTE Net
interest
income $ 11,011 $ 11,127 $ 11,587 $ 11,604 $ 11,803
Provision
for loan
and lease
losses $ 1,000 $ 750 $ 750 $ 1,175 $ 7,950
Non-interest
income $ 3,928 $ 4,119 $ 3,763 $ 3,475 $ 3,723
Non-interest
expense $ 9,242 $ 9,279 $ 9,112 $ 8,349 $ 9,418
Net income
(loss) $ 3,181 $ 3,535 $ 3,703 $ 3,741 $ (1,118)
Basic
earnings
(loss) per
share $ 0.20 $ 0.21 $ 0.22 $ 0.22 $ (0.07)
Diluted
earnings
(loss)
per
share $ 0.20 $ 0.21 $ 0.22 $ 0.22 $ (0.07)
Average
shares
outstand-
ing 16,288,696 16,558,137 16,686,983 16,815,634 16,872,826
Average
diluted
shares
outstand-
ing 16,310,279 16,585,720 16,716,685 16,837,925 16,894,504
PERFORMANCE
RATIOS
Return on
average
assets 0.83% 0.94% 0.97% 0.95% -0.28%
Return on
average
common
equity 9.55% 10.33% 10.92% 10.51% -3.15%
Base
Margin 2.90% 2.98% 3.06% 2.93% 2.95%
FTE
Adjust-
ment 0.10% 0.10% 0.11% 0.12% 0.11%
Loan Fees 0.08% 0.07% 0.07% 0.09% 0.10%
---------- ---------- ---------- ---------- ----------
FTE Net
Interest
Margin 3.08% 3.15% 3.24% 3.14% 3.16%
Efficiency
ratio 61.06% 60.74% 58.82% 54.82% 55.94%
Full-time
equivalent
employees 426 425 429 415 416
CAPITAL
Average
equity to
average
assets 8.69% 9.06% 8.91% 9.02% 8.93%
Book
value
per
share $ 8.15 $ 8.00 $ 8.21 $ 8.14 $ 8.30
Cash
dividend
per
share $ 0.18 $ 0.18 $ 0.18 $ 0.18 $ 0.18
ASSET
QUALITY
Loan
Charge-
Offs $ 1,013 $ 1,082 $ 1,088 $ 1,343 $ 12,407
Loan
Recover-
ies $ 256 $ 343 $ 643 $ 390 $ 497
---------- ---------- ---------- ---------- ----------
Net
Charge-
Offs $ 757 $ 739 $ 445 $ 953 $ 11,910
Allowance
for loan
and lease
losses $ 14,323 $ 14,080 $ 14,069 $ 13,764 $ 13,542
Nonaccrual
Loans $ 26,440 $ 20,017 $ 19,527 $ 19,152 $ 13,334
Loans 90
days past
due $ 105 $ 105 $ 61 $ 69 $ 99
Restructured
loans $ 938 $ 1,371 $ 572 $ 888 $ 944
---------- ---------- ---------- ---------- ----------
Total
non
perf-
orming
loans $ 27,483 $ 21,493 $ 20,160 $ 20,109 $ 14,377
Other
real
estate
owned $ 6,389 $ 3,064 $ 2,598 $ 2,432 $ 4,873
---------- ---------- ---------- ---------- ----------
Total
non
perf-
orming
assets $ 33,872 $ 24,557 $ 22,758 $ 22,541 $ 19,250
Problem
Loans
Still
Perfor-
ming $ 32,822 $ 34,859 $ 35,918 $ 39,650 $ 43,618
---------- ---------- ---------- ---------- ----------
Total
Problem
Assets $ 66,694 $ 59,416 $ 58,676 $ 62,191 $ 62,868
Net loan
charge-offs
to average
loans 0.30% 0.30% 0.18% 0.38% 4.61%
Allowance
for losses
to total
loans 1.42% 1.40% 1.42% 1.38% 1.34%
Non performing
assets to
Gross Loans 3.36% 2.45% 2.30% 2.26% 1.91%
Non performing
assets to
total assets 2.17% 1.62% 1.47% 1.44% 1.21%
Allowance
to non
performing
assets 42.29% 57.34% 61.82% 61.06% 70.35%
END OF
PERIOD
BALANCES
Loans and
leases $1,008,875 $1,002,248 $ 989,322 $ 998,998 $1,008,914
Total
earning
assets $1,439,366 $1,402,808 $1,438,870 $1,451,109 $1,473,804
Total
assets $1,560,234 $1,516,026 $1,547,709 $1,566,819 $1,588,374
Deposits $1,110,074 $1,078,431 $1,096,210 $1,116,057 $1,124,784
Interest
Bearing
Liabil-
ities $1,273,695 $1,224,061 $1,251,379 $1,257,366 $1,284,862
Shareholders'
equity $ 131,651 $ 131,056 $ 136,611 $ 136,062 $ 140,017
Total
Shares
Outstand-
ing 16,148,863 16,379,602 16,644,463 16,713,960 16,873,671
AVERAGE
BALANCES
Loans and
leases $1,010,604 $ 994,093 $ 993,498 $1,001,549 $1,025,729
Total
earning
assets $1,419,329 $1,420,183 $1,446,247 $1,467,136 $1,480,840
Total
assets $1,520,222 $1,516,209 $1,544,515 $1,565,707 $1,578,802
Deposits $1,086,050 $1,075,960 $1,099,850 $1,112,521 $1,113,447
Interest
Bearing
Liabil-
ities $1,248,691 $1,236,703 $1,263,342 $1,280,146 $1,291,485
Shareholders'
equity $ 132,088 $ 137,322 $ 137,573 $ 141,256 $ 140,954
Year to Date
--------------------------
(dollars in thousands except 2007 2006
per share data) ----------- -----------
EARNINGS
Net interest income $ 32,638 $ 35,470
FTE Net interest income $ 33,725 $ 36,822
Provision for loan and lease losses $ 2,500 $ 15,300
Non-interest income $ 11,810 $ 6,067
Non-interest expense $ 27,633 $ 27,959
Net income (loss) $ 10,419 $ 32
Basic earnings (loss) per share $ 0.63 $ --
Diluted earnings (loss) per share $ 0.63 $ --
Average shares outstanding 16,509,813 16,983,826
Average diluted shares outstanding 16,531,396 17,005,504
PERFORMANCE RATIOS
Return on average assets 0.91% 0.00%
Return on average common equity 10.27% 0.03%
Base Margin 2.98% 3.05%
FTE Adjustment 0.10% 0.12%
Loan Fees 0.07% 0.10%
----------- -----------
FTE Net Interest Margin 3.15% 3.27%
Efficiency ratio 60.20% 53.98%
Full-time equivalent employees 427 417
CAPITAL
Average equity to average assets 8.88% 9.18%
Book value per share $ 8.15 $ 8.30
Cash dividend per share $ 0.54 $ 0.52
ASSET QUALITY
Loan Charge-Offs $ 3,183 $ 17,031
Loan Recoveries $ 1,242 $ 1,649
----------- -----------
Net Charge-Offs $ 1,941 $ 15,382
Allowance for loan and lease losses $ 14,323 $ 13,542
Nonaccrual Loans $ 26,440 $ 13,334
Loans 90 days past due $ 105 $ 99
Restructured loans $ 938 $ 944
----------- -----------
Total non performing loans $ 27,483 $ 14,377
Other real estate owned $ 6,389 $ 4,873
----------- -----------
Total non performing assets $ 33,872 $ 19,250
Problem Loans Still Performing $ 32,822 $ 43,618
----------- -----------
Total Problem Assets $ 66,694 $ 62,868
Net loan charge-offs to average loans 0.26% 2.03%
Allowance for losses to total loans 1.42% 1.34%
Non performing assets to Gross Loans 3.36% 1.91%
Non performing assets to total assets 2.17% 1.21%
Allowance to non performing assets 42.29% 70.35%
END OF PERIOD BALANCES
Loans and leases $ 1,008,875 $ 1,008,914
Total earning assets $ 1,439,366 $ 1,473,804
Total assets $ 1,560,234 $ 1,588,374
Deposits $ 1,110,074 $ 1,124,784
Interest Bearing Liabilities $ 1,273,695 $ 1,284,862
Shareholders' equity $ 131,651 $ 140,017
Total Shares Outstanding 16,148,863 16,873,671
AVERAGE BALANCES
Loans and leases $ 999,461 $ 1,013,630
Total earning assets $ 1,428,488 $ 1,505,486
Total assets $ 1,526,893 $ 1,602,302
Deposits $ 1,087,236 $ 1,133,461
Interest Bearing Liabilities $ 1,249,525 $ 1,299,459
Shareholders' equity $ 135,641 $ 147,100
MBT FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
Quarter Ended
Dollars in thousands September 30,
(except per share data) 2007 2006
---------------------------------------------------------------------
Interest Income
Interest and fees on loans $ 18,116 $ 18,080
Interest on investment securities-
Tax-exempt 875 1,041
Taxable 4,541 5,039
Interest on federal funds sold 25 5
---------------------------------------------------------------------
Total interest income 23,557 24,165
---------------------------------------------------------------------
Interest Expense
Interest on deposits 8,277 7,954
Interest on borrowed funds 4,612 4,831
---------------------------------------------------------------------
Total interest expense 12,889 12,785
---------------------------------------------------------------------
Net Interest Income 10,668 11,380
Provision For Loan Losses 1,000 7,950
---------------------------------------------------------------------
Net Interest Income After
Provision For Loan Losses 9,668 3,430
---------------------------------------------------------------------
Other Income
Income from trust services 1,171 1,060
Service charges and other fees 1,599 1,591
Net gain (loss) on sales of securities 4 6
Origination fees on mortgage loans sold 169 152
Bank Owned Life Insurance income 329 310
Other 656 604
---------------------------------------------------------------------
Total other income 3,928 3,723
---------------------------------------------------------------------
Other Expenses
Salaries and employee benefits 5,363 4,728
Occupancy expense 845 805
Equipment expense 780 723
Marketing expense 426 351
Professional fees 369 614
Net (gain) loss on other real estate owned 12 593
Other 1,447 1,604
---------------------------------------------------------------------
Total other expenses 9,242 9,418
---------------------------------------------------------------------
Income (Loss) Before Income Taxes 4,354 (2,265)
Income Tax Expense (Benefit) 1,173 (1,147)
---------------------------------------------------------------------
Net Income (Loss) $ 3,181 $ (1,118)
=====================================================================
Basic Earnings (Loss) Per Common Share $ 0.20 $ (0.07)
=====================================================================
Diluted Earnings (Loss) Per Common Share $ 0.20 $ (0.07)
=====================================================================
Dividends Declared Per Common Share $ 0.18 $ 0.18
=====================================================================
MBT FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
Nine Months Ended
Dollars in thousands September 30,
(except per share data) 2007 2006
---------------------------------------------------------------------
Interest Income
Interest and fees on loans $ 53,628 $ 53,089
Interest on investment securities-
Tax-exempt 2,755 3,283
Taxable 14,038 15,401
Interest on federal funds sold 141 60
---------------------------------------------------------------------
Total interest income 70,562 71,833
---------------------------------------------------------------------
Interest Expense
Interest on deposits 24,213 22,717
Interest on borrowed funds 13,711 13,646
---------------------------------------------------------------------
Total interest expense 37,924 36,363
---------------------------------------------------------------------
Net Interest Income 32,638 35,470
Provision For Loan Losses 2,500 15,300
---------------------------------------------------------------------
Net Interest Income After
Provision For Loan Losses 30,138 20,170
---------------------------------------------------------------------
Other Income
Income from trust services 3,389 3,192
Service charges and other fees 4,698 4,621
Net gain (loss) on sales of securities 96 (4,901)
Origination fees on mortgage loans sold 562 428
Bank Owned Life Insurance income 959 885
Other 2,106 1,842
---------------------------------------------------------------------
Total other income 11,810 6,067
---------------------------------------------------------------------
Other Expenses
Salaries and employee benefits 16,411 15,246
Occupancy expense 2,569 2,284
Equipment expense 2,475 2,268
Marketing expense 1,047 1,069
Professional fees 1,145 1,230
Net loss on other real estate owned 22 1,830
Other 3,964 4,032
---------------------------------------------------------------------
Total other expenses 27,633 27,959
---------------------------------------------------------------------
Income (Loss) Before Income Taxes 14,315 (1,722)
Income Tax Expense (Benefit) 3,896 (1,754)
---------------------------------------------------------------------
Net Income $ 10,419 $ 32
=====================================================================
Basic Earnings Per Common Share $ 0.63 $ --
=====================================================================
Diluted Earnings Per Common Share $ 0.63 $ --
=====================================================================
Dividends Declared Per Common Share $ 0.54 $ 0.52
=====================================================================
MBT FINANCIAL CORP.
CONSOLIDATED BALANCE SHEETS
Sept. 30, 2007 December 31,
Dollars in thousands (Unaudited) 2006
---------------------------------------------------------------------
Assets
Cash and Cash Equivalents
Cash and due from banks $ 31,165 $ 27,903
Federal funds sold -- --
---------------------------------------------------------------------
Total cash and cash equivalents 31,165 27,903
Securities - Held to Maturity 49,857 64,938
Securities - Available for Sale 367,548 374,087
Federal Home Loan Bank stock - at cost 13,086 13,086
Loans held for sale 625 721
Loans - Net 993,927 984,513
Accrued interest receivable and other
assets 28,801 27,961
Bank Owned Life Insurance 42,174 39,631
Premises and Equipment - Net 33,051 33,979
---------------------------------------------------------------------
Total assets $ 1,560,234 $ 1,566,819
=====================================================================
Liabilities
Deposits:
Non-interest bearing $ 139,579 $ 158,688
Interest-bearing 970,495 957,369
---------------------------------------------------------------------
Total deposits 1,110,074 1,116,057
Federal Home Loan Bank advances 256,500 256,500
Federal funds purchased 11,700 3,500
Repurchase agreements 35,000 40,000
Interest payable and other liabilities 15,309 14,700
---------------------------------------------------------------------
Total liabilities 1,428,583 1,430,757
---------------------------------------------------------------------
Shareholders' Equity
Common stock (no par value) -- --
Additional paid-in capital 141 6,979
Retained Earnings 135,729 134,162
Accumulated other comprehensive income (4,219) (5,079)
---------------------------------------------------------------------
Total shareholders' equity 131,651 136,062
---------------------------------------------------------------------
Total liabilities and shareholders'
equity $ 1,560,234 $ 1,566,819
=====================================================================