MONROE, Mich., April 21, 2008 (PRIME NEWSWIRE) -- MBT Financial Corp. (Nasdaq:MBTF), the parent company of Monroe Bank & Trust, reported first quarter 2008 net income of $2.6 million, or $0.16 per diluted share, compared to the $3.7 million, or $0.22 per diluted share earned in the first quarter of 2007.
H. Douglas Chaffin, President and CEO, commented, "Regional economic conditions, including increasing unemployment and decreasing real estate values, continue to have a negative impact on our earnings and asset quality. Non performing assets (NPAs) increased from $46.5 million to $55.4 million during the first quarter and total problem assets increased from $87.5 million to $95.9 million. Net charge offs during the quarter were 1.51% of loans, annualized, and we increased our allowance for loan losses from 1.42% of loans to 1.78% over the last twelve months. Our strong capital position allowed us to pay a quarterly dividend that exceeded our earnings and represents an annualized yield near 8% on our current stock price. While we believe that we can continue to maintain this dividend payment, we will evaluate our capital needs and earnings expectations each quarter when we declare our dividend."
Mr. Chaffin further commented on the Company's earnings for the quarter. "Net Interest Income decreased $730,000 compared to the first quarter of 2007 due to the lower net interest margin and the slightly smaller amount of average earning assets. However, we are encouraged by the small improvements in the average earning assets, net interest margin, and net interest income compared to the fourth quarter of 2007. Non interest income, excluding securities transactions, increased 4.6% compared to last year. Credit quality issues also affected our non interest expenses, which increased 6.4% compared to last year. We continued the staff reduction and other initiatives that began in the second half of 2007 and expect to see meaningful expense improvement in the rest of 2008."
Conference Call
MBT Financial Corp. will hold a conference call to discuss first quarter results on Tuesday, April 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 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 except 2008 2007 2007
per share data) 1st Qtr 4th Qtr 3rd Qtr
----------- ----------- -----------
EARNINGS
Net interest income $ 10,453 $ 10,131 $ 10,668
FTE Net interest income $ 10,784 $ 10,232 $ 11,011
Provision for loan and lease
losses $ 1,200 $ 8,907 $ 1,000
Non-interest income $ 3,962 $ 3,824 $ 3,928
Non-interest expense $ 9,698 $ 9,601 $ 9,242
Net income (loss) $ 2,647 $ (2,706) $ 3,181
Basic earnings (loss) per
share $ 0.16 $ (0.17) $ 0.20
Diluted earnings (loss) per
share $ 0.16 $ (0.17) $ 0.20
Average shares outstanding 16,127,047 16,135,339 16,288,696
Average diluted shares
outstanding 16,139,073 16,145,958 16,310,279
PERFORMANCE RATIOS
Return on average assets 0.69% -0.70% 0.83%
Return on average common equity 8.24% -8.05% 9.55%
Base Margin 2.84% 2.74% 2.90%
FTE Adjustment 0.09% 0.03% 0.10%
Loan Fees 0.07% 0.06% 0.08%
----------- ----------- -----------
FTE Net Interest Margin 3.00% 2.83% 3.08%
Efficiency ratio 64.51% 60.16% 61.06%
Full-time equivalent employees 380 404 426
CAPITAL
Average equity to average
assets 8.36% 8.66% 8.69%
Book value per share $ 7.94 $ 7.90 $ 8.15
Cash dividend per share $ 0.18 $ 0.18 $ 0.18
ASSET QUALITY
Loan Charge-Offs $ 3,955 $ 3,204 $ 1,013
Loan Recoveries $ 216 $ 195 $ 256
----------- ----------- -----------
Net Charge-Offs $ 3,739 $ 3,009 $ 757
Allowance for loan and lease
losses $ 17,683 $ 20,222 $ 14,323
Nonaccrual Loans $ 37,814 $ 30,459 $ 26,440
Loans 90 days past due $ 94 $ 102 $ 105
Restructured loans $ 1,679 $ 3,367 $ 938
----------- ----------- -----------
Total non performing loans $ 39,587 $ 33,928 $ 27,483
Other real estate owned & other
assets $ 15,819 $ 12,565 $ 6,389
----------- ----------- -----------
Total non performing assets $ 55,406 $ 46,493 $ 33,872
Problem Loans Still Performing $ 40,521 $ 41,022 $ 32,822
----------- ----------- -----------
Total Problem Assets $ 95,927 $ 87,515 $ 66,694
Net loan charge-offs to average
loans 1.51% 1.19% 0.30%
Allowance for losses to total
loans 1.78% 2.02% 1.42%
Non performing loans to gross
loans 3.99% 3.39% 2.72%
Non performing assets to total
assets 3.56% 2.99% 2.17%
Allowance to non performing
loans 44.67% 59.60% 52.12%
END OF PERIOD BALANCES
Loans and leases $ 991,402 $1,002,259 $1,008,875
Total earning assets $1,435,370 $1,440,317 $1,439,366
Total assets $1,555,450 $1,556,806 $1,560,234
Deposits $1,095,605 $1,109,980 $1,110,074
Interest Bearing Liabilities $1,286,289 $1,273,665 $1,273,695
Shareholders' equity $ 128,081 $ 127,447 $ 131,651
Total Shares Outstanding 16,128,321 16,124,997 16,148,863
AVERAGE BALANCES
Loans and leases $ 998,060 $1,002,948 $1,010,604
Total earning assets $1,444,037 $1,436,545 $1,419,329
Total assets $1,545,048 $1,539,446 $1,520,222
Deposits $1,109,664 $1,094,346 $1,086,050
Interest Bearing Liabilities $1,283,990 $1,264,772 $1,248,691
Shareholders' equity $ 129,175 $ 133,363 $ 132,088
Quarterly
---------------------------
(dollars in thousands except 2007 2007
per share data) 2nd Qtr 1st Qtr
------------ ------------
EARNINGS
Net interest income $ 10,787 $ 11,183
FTE Net interest income $ 11,127 $ 11,587
Provision for loan and lease
losses $ 750 $ 750
Non-interest income $ 4,119 $ 3,763
Non-interest expense $ 9,279 $ 9,112
Net income (loss) $ 3,535 $ 3,703
Basic earnings (loss) per share $ 0.21 $ 0.22
Diluted earnings (loss) per
share $ 0.21 $ 0.22
Average shares outstanding 16,558,137 16,686,983
Average diluted shares
outstanding 16,585,720 16,716,685
PERFORMANCE RATIOS
Return on average assets 0.94% 0.97%
Return on average common equity 10.33% 10.92%
Base Margin 2.98% 3.06%
FTE Adjustment 0.10% 0.11%
Loan Fees 0.07% 0.07%
------------ ------------
FTE Net Interest Margin 3.15% 3.24%
Efficiency ratio 60.74% 58.82%
Full-time equivalent employees 425 429
CAPITAL
Average equity to average assets 9.06% 8.91%
Book value per share $ 8.00 $ 8.21
Cash dividend per share $ 0.18 $ 0.18
ASSET QUALITY
Loan Charge-Offs $ 1,082 $ 1,088
Loan Recoveries $ 343 $ 643
------------ ------------
Net Charge-Offs $ 739 $ 445
Allowance for loan and lease
losses $ 14,080 $ 14,069
Nonaccrual Loans $ 20,017 $ 19,527
Loans 90 days past due $ 105 $ 61
Restructured loans $ 1,371 $ 572
------------ ------------
Total non performing loans $ 21,493 $ 20,160
Other real estate owned & other
assets $ 3,064 $ 2,598
------------ ------------
Total non performing assets $ 24,557 $ 22,758
Problem Loans Still Performing $ 34,859 $ 35,918
------------ ------------
Total Problem Assets $ 59,416 $ 58,676
Net loan charge-offs to average
loans 0.30% 0.18%
Allowance for losses to total
loans 1.40% 1.42%
Non performing loans to gross
loans 2.14% 2.04%
Non performing assets to total
assets 1.62% 1.47%
Allowance to non performing loans 65.51% 69.79%
END OF PERIOD BALANCES
Loans and leases $ 1,002,248 $ 989,322
Total earning assets $ 1,402,808 $ 1,438,870
Total assets $ 1,516,026 $ 1,547,709
Deposits $ 1,078,431 $ 1,096,210
Interest Bearing Liabilities $ 1,224,061 $ 1,251,379
Shareholders' equity $ 131,056 $ 136,611
Total Shares Outstanding 16,379,602 16,644,463
AVERAGE BALANCES
Loans and leases $ 994,093 $ 993,498
Total earning assets $ 1,420,183 $ 1,446,247
Total assets $ 1,516,209 $ 1,544,515
Deposits $ 1,075,960 $ 1,099,850
Interest Bearing Liabilities $ 1,236,703 $ 1,263,342
Shareholders' equity $ 137,322 $ 137,573
MBT FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
Quarter Ended March 31,
Dollars in thousands ----------------------
(except per share data) 2008 2007
--------------------------------------------------------------
Interest Income
Interest and fees on loans $16,428 $17,761
Interest on investment securities-
Tax-exempt 815 1,009
Taxable 4,956 4,915
Interest on federal funds sold 1 32
--------------------------------------------------------------
Total interest income 22,200 23,717
--------------------------------------------------------------
Interest Expense
Interest on deposits 7,491 7,955
Interest on borrowed funds 4,256 4,579
--------------------------------------------------------------
Total interest expense 11,747 12,534
--------------------------------------------------------------
Net Interest Income 10,453 11,183
Provision For Loan Losses 1,200 750
--------------------------------------------------------------
Net Interest Income After
Provision For Loan Losses 9,253 10,433
--------------------------------------------------------------
Other Income
Income from wealth management services 1,127 1,067
Service charges and other fees 1,526 1,525
Net gain (loss) on sales of securities 25 --
Origination fees on mortgage loans sold 193 183
Bank Owned Life Insurance income 355 296
Other 736 692
--------------------------------------------------------------
Total other income 3,962 3,763
--------------------------------------------------------------
Other Expenses
Salaries and employee benefits 5,582 5,449
Occupancy expense 995 880
Equipment expense 828 845
Marketing expense 241 252
Professional fees 469 370
Net (gain) loss on other real estate owned 35 18
Other 1,548 1,298
--------------------------------------------------------------
Total other expenses 9,698 9,112
--------------------------------------------------------------
Income Before Income Taxes 3,517 5,084
Income Tax Expense 870 1,381
--------------------------------------------------------------
Net Income $ 2,647 $ 3,703
--------------------------------------------------------------
Basic Earnings Per Common Share $ 0.16 $ 0.22
--------------------------------------------------------------
Diluted Earnings Per Common Share $ 0.16 $ 0.22
--------------------------------------------------------------
Dividends Declared Per Common Share $ 0.18 $ 0.18
--------------------------------------------------------------
MBT FINANCIAL CORP.
CONSOLIDATED BALANCE SHEETS
Mar. 31, 2008 Dec. 31,
Dollars in thousands (Unaudited) 2007
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Assets
Cash and Cash Equivalents
Cash and due from banks $ 24,954 $ 25,113
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Total cash and cash equivalents 24,954 25,113
Securities - Held to Maturity 40,768 44,734
Securities - Available for Sale 390,114 380,238
Federal Home Loan Bank stock - at cost 13,086 13,086
Loans held for sale 206 1,431
Loans - Net 973,513 980,606
Accrued interest receivable and other
assets 37,517 36,370
Bank Owned Life Insurance 42,864 42,509
Premises and Equipment - Net 32,428 32,719
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Total assets $1,555,450 $1,556,806
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Liabilities
Deposits:
Non-interest bearing $ 127,716 $ 141,115
Interest-bearing 967,889 968,865
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Total deposits 1,095,605 1,109,980
Federal Home Loan Bank advances 256,500 256,500
Federal funds purchased 26,900 13,300
Repurchase agreements 35,000 35,000
Interest payable and other liabilities 13,364 14,579
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Total liabilities 1,427,369 1,429,359
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Shareholders' Equity
Common stock (no par value) -- --
Retained Earnings 129,780 129,917
Accumulated other comprehensive income (1,699) (2,470)
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Total shareholders' equity 128,081 127,447
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Total liabilities and
shareholders' equity $1,555,450 $1,556,806
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