MONROE, Mich., Feb. 14, 2008 (PRIME NEWSWIRE) -- MBT Financial Corp., (Nasdaq:MBTF), the parent company of Monroe Bank & Trust, revised its previously reported 2007 unaudited net income due to recent developments with one of its problem credits. The revised 2007 unaudited net income is $7.7 million, or $0.47 per diluted share, compared to the $3.8 million, or $0.22 per diluted share earned in 2006. For the fourth quarter the Company has revised its previous unaudited statements to report a loss of $2.7 million, or $0.17 per diluted share, compared to a profit of $3.7 million, or $0.22 per diluted share in the fourth quarter of 2006. The fourth quarter 2007 results were negatively impacted by the need to increase the Allowance for Loan Losses due to economic weakness and declining real estate values in southeast Michigan.
H. Douglas Chaffin, President and CEO, commented, "Following our January 22nd preliminary announcement of 2007 results, we became aware of new information about one of our problem credits that made it apparent that our Allowance for Loan Losses was not adequate. We previously estimated our loss on an individual credit relationship at $1 million. We are increasing that allowance to $5 million due to several recent items, including discovery of accounting irregularities in the customer's financial statements, the bankruptcy filing by a significant customer of the business, increased concern about the viability of the business, and a revised valuation of the collateral. The credit relationship is an automotive supplier that was added to the non performing asset category in the fourth quarter.
"Our annual audit is currently in progress, and we plan to file audited financial statements with the SEC by the March 17th filing deadline. We will continue to aggressively pursue collection of problem credits and make sure that we have properly allowed for potential losses in our portfolio."
Conference Call
MBT Financial Corp. will hold a conference call to discuss this revision to the 2007 results on Tuesday, February 19, at 2:00 p.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 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
-----------------------------------------------------------
2007 2007 2007 2007 2006
4th Qtr 3rd Qtr 2nd Qtr 1st Qtr 4th Qtr
----------- ----------- ----------- ----------- -----------
(dollars in thousands except per share data)
EARNINGS
Net
interest
income $ 10,131 $ 10,668 $ 10,787 $ 11,183 $ 11,165
FTE Net
interest
income $ 10,232 $ 11,011 $ 11,127 $ 11,587 $ 11,604
Provision
for loan
and
lease
losses $ 8,907 $ 1,000 $ 750 $ 750 $ 1,175
Non-
interest
income $ 3,824 $ 3,928 $ 4,119 $ 3,763 $ 3,475
Non-
interest
exp-
ense $ 9,601 $ 9,242 $ 9,279 $ 9,112 $ 8,349
Net
income
(loss) $ (2,706)$ 3,181 $ 3,535 $ 3,703 $ 3,741
Basic
earnings
(loss)
per
share $ (0.17)$ 0.20 $ 0.21 $ 0.22 $ 0.22
Diluted
earnings
(loss)
per
share $ (0.17)$ 0.20 $ 0.21 $ 0.22 $ 0.22
Average
shares
out-
stand-
ing 16,135,339 16,288,696 16,558,137 16,686,983 16,815,634
Average
diluted
shares
out-
stand-
ing 16,145,958 16,310,279 16,585,720 16,716,685 16,837,925
PERFORMANCE RATIOS
Return
on
average
assets -0.70% 0.83% 0.94% 0.97% 0.95%
Return
on
average
common
equity -8.05% 9.55% 10.33% 10.92% 10.51%
Base
Margin 2.74% 2.90% 2.98% 3.06% 2.93%
FTE
Adjust-
ment 0.03% 0.10% 0.10% 0.11% 0.12%
Loan
Fees 0.06% 0.08% 0.07% 0.07% 0.09%
----------- ----------- ----------- ----------- -----------
FTE Net
Interest
Margin 2.83% 3.08% 3.15% 3.24% 3.14%
Effic-
iency
ratio 60.16% 61.06% 60.74% 58.82% 54.82%
Full-time
equiv-
alent
employ-
ees 404 426 425 429 415
CAPITAL
Average
equity
to
average
assets 8.66% 8.69% 9.06% 8.91% 9.02%
Book
value
per
share $ 7.90 $ 8.15 $ 8.00 $ 8.21 $ 8.14
Cash
div-
idend
per
share $ 0.18 $ 0.18 $ 0.18 $ 0.18 $ 0.18
ASSET QUALITY
Loan
Charge-
Offs $ 3,204 $ 1,013 $ 1,082 $ 1,088 $ 1,343
Loan
Recov-
eries $ 195 $ 256 $ 343 $ 643 $ 390
----------- ----------- ----------- ----------- -----------
Net
Charge-
Offs $ 3,009 $ 757 $ 739 $ 445 $ 953
Allowance
for
loan
and
lease
losses $ 20,222 $ 14,323 $ 14,080 $ 14,069 $ 13,764
Non-
accrual
Loans $ 30,459 $ 26,440 $ 20,017 $ 19,527 $ 19,152
Loans 90
days
past
due $ 102 $ 105 $ 105 $ 61 $ 69
Restruc-
tured
loans $ 3,367 $ 938 $ 1,371 $ 572 $ 888
----------- ----------- ----------- ----------- -----------
Total
non
per-
form-
ing
loans $ 33,928 $ 27,483 $ 21,493 $ 20,160 $ 20,109
Other
real
estate
owned
& other
assets $ 12,565 $ 6,389 $ 3,064 $ 2,598 $ 2,432
----------- ----------- ----------- ----------- -----------
Total
non
per-
form-
ing
ass-
ets $ 46,493 $ 33,872 $ 24,557 $ 22,758 $ 22,541
Problem
Loans
Still
Per-
form-
ing $ 41,022 $ 32,822 $ 34,859 $ 35,918 $ 39,650
----------- ----------- ----------- ----------- -----------
Total
Prob-
lem
Ass-
ets $ 87,515 $ 66,694 $ 59,416 $ 58,676 $ 62,191
Net loan
charge-
offs to
average
loans 1.19% 0.30% 0.30% 0.18% 0.38%
Allowance
for
losses
to
total
loans 2.02% 1.42% 1.40% 1.42% 1.38%
Non
per-
form-
ing
loans
to gross
loans 3.39% 2.72% 2.14% 2.04% 2.01%
Non
per-
form-
ing
assets
to
total
assets 2.99% 2.17% 1.62% 1.47% 1.44%
Allowance
to non
per-
form-
ing
loans 59.60% 52.12% 65.51% 69.79% 68.45%
END OF PERIOD BALANCES
Loans
and
leases $ 1,002,259 $ 1,008,875 $ 1,002,248 $ 989,322 $ 998,998
Total
earning
assets $ 1,440,317 $ 1,439,366 $ 1,402,808 $ 1,438,870 $ 1,451,109
Total
assets $ 1,556,806 $ 1,560,234 $ 1,516,026 $ 1,547,709 $ 1,566,819
Dep-
osits $ 1,109,980 $ 1,110,074 $ 1,078,431 $ 1,096,210 $ 1,116,057
Interest
Bearing
Lia-
bil-
ities $ 1,273,665 $ 1,273,695 $ 1,224,061 $ 1,251,379 $ 1,257,369
Share-
holders'
equity $ 127,447 $ 131,651 $ 131,056 $ 136,611 $ 136,062
Total
Shares
Out-
stand-
ing 16,124,997 16,148,863 16,379,602 16,644,463 16,713,960
AVERAGE BALANCES
Loans
and
leases $ 1,002,948 $ 1,010,604 $ 994,093 $ 993,498 $ 1,001,560
Total
earning
assets $ 1,436,545 $ 1,419,329 $ 1,420,183 $ 1,446,247 $ 1,467,244
Total
assets $ 1,539,446 $ 1,520,222 $ 1,516,209 $ 1,544,515 $ 1,565,703
Dep-
osits $ 1,094,346 $ 1,086,050 $ 1,075,960 $ 1,099,850 $ 1,112,521
Interest
Bearing
Lia-
bil-
ities $ 1,264,772 $ 1,248,691 $ 1,236,703 $ 1,263,342 $ 1,280,144
Share-
holders'
equity $ 133,363 $ 132,088 $ 137,322 $ 137,573 $ 141,240
Year to Date
-----------------------
2007 2006
----------- -----------
(dollars in thousands except per share data)
EARNINGS
Net interest income $ 42,769 $ 46,635
FTE Net interest income $ 43,957 $ 48,426
Provision for loan and lease losses $ 11,407 $ 16,475
Non-interest income $ 15,634 $ 9,542
Non-interest expense $ 37,234 $ 36,308
Net income (loss) $ 7,713 $ 3,773
Basic earnings (loss) per share $ 0.47 $ 0.22
Diluted earnings (loss) per share $ 0.47 $ 0.22
Average shares outstanding 16,415,425 16,941,432
Average diluted shares outstanding 16,426,044 16,972,825
PERFORMANCE RATIOS
Return on average assets 0.50% 0.24%
Return on average common equity 5.71% 2.59%
Base Margin 2.92% 3.02%
FTE Adjustment 0.08% 0.12%
Loan Fees 0.07% 0.09%
----------- -----------
FTE Net Interest Margin 3.07% 3.23%
Efficiency ratio 60.19% 54.19%
Full-time equivalent employees 420 416
CAPITAL
Average equity to average assets 8.83% 9.14%
Book value per share $ 7.90 $ 8.14
Cash dividend per share $ 0.72 $ 0.70
ASSET QUALITY
Loan Charge-Offs $ 6,387 $ 18,374
Loan Recoveries $ 1,438 $ 2,039
----------- -----------
Net Charge-Offs $ 4,949 $ 16,335
Allowance for loan and lease losses $ 20,222 $ 13,764
Nonaccrual Loans $ 30,459 $ 19,152
Loans 90 days past due $ 102 $ 69
Restructured loans $ 3,367 $ 888
----------- -----------
Total non performing loans $ 33,928 $ 20,109
Other real estate owned & other assets $ 12,565 $ 2,432
----------- -----------
Total non performing assets $ 46,493 $ 22,541
Problem Loans Still Performing $ 41,022 $ 39,650
----------- -----------
Total Problem Assets $ 87,515 $ 62,191
Net loan charge-offs to average loans 0.49% 1.62%
Allowance for losses to total loans 2.02% 1.38%
Non performing loans to gross loans 3.39% 2.01%
Non performing assets to total assets 2.99% 1.44%
Allowance to non performing loans 59.60% 68.45%
END OF PERIOD BALANCES
Loans and leases $ 1,002,259 $ 998,998
Total earning assets $ 1,440,317 $ 1,451,109
Total assets $ 1,556,806 $ 1,566,819
Deposits $ 1,109,980 $ 1,116,057
Interest Bearing Liabilities $ 1,273,665 $ 1,257,369
Shareholders' equity $ 127,447 $ 136,062
Total Shares Outstanding 16,124,997 16,713,960
AVERAGE BALANCES
Loans and leases $ 1,000,340 $ 1,010,585
Total earning assets $ 1,430,519 $ 1,495,845
Total assets $ 1,530,057 $ 1,593,078
Deposits $ 1,089,028 $ 1,128,183
Interest Bearing Liabilities $ 1,253,368 $ 1,294,591
Shareholders' equity $ 135,067 $ 145,627
MBT FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
---------------------------------------------------------------------
Dollars in thousands (except per share Quarter Ended December 31,
data) 2007 2006
---------------------------------------------------------------------
Interest Income
Interest and fees on loans $ 17,617 $ 17,861
Interest on investment securities-
Tax-exempt 422 1,073
Taxable 4,947 5,145
Interest on federal funds sold 3 11
---------------------------------------------------------------------
Total interest income 22,989 24,090
---------------------------------------------------------------------
Interest Expense
Interest on deposits 8,209 8,132
Interest on borrowed funds 4,649 4,793
---------------------------------------------------------------------
Total interest expense 12,858 12,925
---------------------------------------------------------------------
Net Interest Income 10,131 11,165
Provision For Loan Losses 8,907 1,175
---------------------------------------------------------------------
Net Interest Income After
Provision For Loan Losses 1,224 9,990
---------------------------------------------------------------------
Other Income
Income from trust services 1,188 1,076
Service charges and other fees 1,603 1,589
Net gain (loss) on sales of securities (176) (156)
Origination fees on mortgage loans sold 128 132
Bank Owned Life Insurance income 335 257
Other 746 577
---------------------------------------------------------------------
Total other income 3,824 3,475
---------------------------------------------------------------------
Other Expenses
Salaries and employee benefits 4,956 4,326
Occupancy expense 897 829
Equipment expense 786 828
Marketing expense 408 554
Professional fees 363 605
Net (gain) loss on other real estate owned 800 (75)
Other 1,391 1,282
---------------------------------------------------------------------
Total other expenses 9,601 8,349
---------------------------------------------------------------------
Income (Loss) Before Income Taxes (4,553) 5,116
Income Tax Expense (Benefit) (1,847) 1,375
---------------------------------------------------------------------
Net Income (Loss) $ (2,706) $ 3,741
---------------------------------------------------------------------
Basic Earnings (Loss) Per Common Share $ (0.17) $ 0.22
---------------------------------------------------------------------
Diluted Earnings (Loss) Per Common Share $ (0.17) $ 0.22
---------------------------------------------------------------------
Dividends Declared Per Common Share $ 0.18 $ 0.18
---------------------------------------------------------------------
MBT FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF INCOME
---------------------------------------------------------------------
Dollars in thousands (except per share Year Ended December 31,
data) 2007 (Unaudited) 2006
---------------------------------------------------------------------
Interest Income
Interest and fees on loans $ 71,245 $ 70,950
Interest on investment securities-
Tax-exempt 3,177 4,356
Taxable 18,985 20,546
Interest on federal funds sold 144 71
---------------------------------------------------------------------
Total interest income 93,551 95,923
---------------------------------------------------------------------
Interest Expense
Interest on deposits 32,422 30,849
Interest on borrowed funds 18,360 18,439
---------------------------------------------------------------------
Total interest expense 50,782 49,288
---------------------------------------------------------------------
Net Interest Income 42,769 46,635
Provision For Loan Losses 11,407 16,475
---------------------------------------------------------------------
Net Interest Income After
Provision For Loan Losses 31,362 30,160
---------------------------------------------------------------------
Other Income
Income from trust services 4,577 4,268
Service charges and other fees 6,301 6,210
Net gain (loss) on sales of securities (80) (5,057)
Origination fees on mortgage loans sold 690 560
Bank Owned Life Insurance income 1,294 1,142
Other 2,852 2,419
---------------------------------------------------------------------
Total other income 15,634 9,542
---------------------------------------------------------------------
Other Expenses
Salaries and employee benefits 21,367 19,572
Occupancy expense 3,466 3,113
Equipment expense 3,261 3,096
Marketing expense 1,455 1,623
Professional fees 1,508 1,835
Net loss on other real estate owned 822 1,755
Other 5,355 5,314
---------------------------------------------------------------------
Total other expenses 37,234 36,308
---------------------------------------------------------------------
Income Before Income Taxes 9,762 3,394
Income Tax Expense (Benefit) 2,049 (379)
---------------------------------------------------------------------
Net Income $ 7,713 $ 3,773
---------------------------------------------------------------------
Basic Earnings Per Common Share $ 0.47 $ 0.22
---------------------------------------------------------------------
Diluted Earnings Per Common Share $ 0.47 $ 0.22
---------------------------------------------------------------------
Dividends Declared Per Common Share $ 0.72 $ 0.70
---------------------------------------------------------------------
MBT FINANCIAL CORP.
CONSOLIDATED BALANCE SHEETS
Dec. 31, 2007 December 31,
Dollars in thousands (Unaudited) 2006
---------------------------------------------------------------------
Assets
Cash and Cash Equivalents
Cash and due from banks $ 25,113 $ 27,903
Federal funds sold -- --
---------------------------------------------------------------------
Total cash and cash equivalents 25,113 27,903
Securities - Held to Maturity 44,734 64,938
Securities - Available for Sale 380,238 374,087
Federal Home Loan Bank stock - at cost 13,086 13,086
Loans held for sale 1,431 721
Loans - Net 980,606 984,513
Accrued interest receivable and other
assets 36,370 27,961
Bank Owned Life Insurance 42,509 39,631
Premises and Equipment - Net 32,719 33,979
---------------------------------------------------------------------
Total assets $ 1,556,806 $ 1,566,819
---------------------------------------------------------------------
Liabilities
Deposits:
Non-interest bearing $ 141,115 $ 158,688
Interest-bearing 968,865 957,369
---------------------------------------------------------------------
Total deposits 1,109,980 1,116,057
Federal Home Loan Bank advances 256,500 256,500
Federal funds purchased 13,300 3,500
Repurchase agreements 35,000 40,000
Interest payable and other liabilities 14,579 14,700
---------------------------------------------------------------------
Total liabilities 1,429,359 1,430,757
---------------------------------------------------------------------
Shareholders' Equity
Common stock (no par value) -- --
Additional paid-in capital -- 6,979
Retained Earnings 129,917 134,162
Accumulated other comprehensive income (2,470) (5,079)
---------------------------------------------------------------------
Total shareholders' equity 127,447 136,062
---------------------------------------------------------------------
Total liabilities and shareholders'
equity $ 1,556,806 $ 1,566,819
---------------------------------------------------------------------