MONROE, Mich., Jan. 29, 2009 (GLOBE NEWSWIRE) -- MBT Financial Corp., (Nasdaq:MBTF), the parent company of Monroe Bank & Trust, reported a fourth quarter 2008 net loss of $3.0 million, or $0.19 per diluted share, compared to the loss of $2.7 million, or $0.17 per diluted share in the fourth quarter of 2007. Net income for the year ended December 31, 2008 was $1.7 million, or $0.10 per diluted share, compared to $7.7 million, or $0.47 per diluted share in 2007.
H. Douglas Chaffin, President and CEO, commented, "The loss we recorded in the fourth quarter of 2008 was entirely due to credit quality issues that arose due to the poor economic conditions in southeast Michigan. The national economy has joined Michigan in the worst recession in decades, but we believe that the steps we began to take in 2008 will help us through these times and leave us positioned well for the eventual economic recovery. We have made structural changes to our credit and collections functions, improved our liquidity, and maintained capital well in excess of the regulatory minimums to be considered well capitalized. While the fourth quarter of 2008 was especially challenging, we will be able to withstand the current environment and continue to serve the credit and banking needs of the communities in southeast Michigan. While we are never pleased with posting a quarterly loss, the fact that we were profitable for 2008 given the substantial credit related charges during the year is considered an accomplishment in this environment."
Mr. Chaffin further commented on the Company's earnings for the quarter. "Net Interest Income decreased $408,000 compared to the fourth quarter of 2007 as the net interest margin decreased from 2.83% to 2.79% while the amount of average earning assets was unchanged at $1.44 billion. Non interest income, excluding securities gains, decreased $151,000 as the decrease in market values of investments caused a decline in wealth management income. Non interest expenses decreased $828,000, or 8.6%, even though credit related expenses increased substantially compared to the same period a year ago.
"On October 10, 2008, we acquired the deposits of Main Street Bank in Northville and Plymouth, Michigan from the FDIC when they were closed by state regulators. This added a considerable amount of liquidity to our balance sheet, contributing to the nearly $56 million increase in deposits during the quarter. Integration continues to progress well, and we are pleased with the reception that our style of community banking and wealth management is receiving in the Northville and Plymouth areas.
"We monitor our capital position closely", Mr. Chaffin continued. "In light of these reduced earnings levels, our Board will review the appropriateness of continuing our current level of dividends for the 2nd quarter at its next meeting on February 26th."
Under separate press releases, the company also announced its decision to withdraw its application for funding under the U.S. Treasury's Troubled Asset Relief Program (TARP). This decision was based primarily on the company's well-capitalized position and the high cost of this funding. In addition, the company also announced the recent addition to its Board of Edwin L. Harwood as well as the continuation of William D. McIntyre, Jr. as Chairman, and the appointment of Michael J. Miller as Vice Chairman. For a more detailed discussion of these announcements please refer to the separate press releases provided on this same date.
Conference Call
MBT Financial Corp. will hold a conference call to discuss fourth quarter results on Friday, January 30, 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.
The MBT Financial Corp. logo is available at http://www.globenewswire.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
(dollars in Quarterly
thousands ==================================================
except per 2008 2008 2008 2008
share data) 4th Qtr 3rd Qtr 2nd Qtr 1st Qtr
----------- ----------- ----------- -----------
EARNINGS
Net interest
income $ 9,723 $ 11,086 $ 11,127 $ 10,453
FTE Net
interest
income $ 10,088 $ 11,417 $ 11,463 $ 10,784
Provision for
loan and lease
losses $ 10,000 $ 4,100 $ 2,700 $ 1,200
Non-interest
income $ 3,900 $ 4,265 $ 3,858 $ 3,962
Non-interest
expense $ 8,773 $ 11,365 $ 10,163 $ 9,698
Net income
(loss) $ (2,997) $ 324 $ 1,718 $ 2,647
Basic earnings
(loss) per
share $ (0.19) $ 0.02 $ 0.11 $ 0.16
Diluted
earnings
(loss) per
share $ (0.19) $ 0.02 $ 0.11 $ 0.16
Average
shares
outstanding 16,143,902 16,136,402 16,130,806 16,127,047
Average
diluted
shares
outstanding 16,174,906 16,163,863 16,162,181 16,139,073
PERFORMANCE RATIOS
Return on
average assets -0.77% 0.09% 0.45% 0.69%
Return on
average
common equity -9.78% 1.04% 5.34% 8.24%
Base Margin 2.65% 3.08% 3.05% 2.84%
FTE Adjustment 0.10% 0.09% 0.09% 0.09%
Loan Fees 0.04% 0.07% 0.07% 0.07%
----------- ----------- ----------- -----------
FTE Net
Interest
Margin 2.79% 3.24% 3.21% 3.00%
Efficiency
ratio 59.11% 56.66% 61.24% 64.51%
Full-time
equivalent
employees 384 366 384 380
CAPITAL
Average equity
to average
assets 7.83% 8.19% 8.42% 8.36%
Book value
per share $ 7.49 $ 7.46 $ 7.52 $ 7.94
Cash dividend
per share $ 0.09 $ 0.09 $ 0.18 $ 0.18
ASSET QUALITY
Loan
Charge-Offs $ 10,132 $ 3,954 $ 2,607 $ 3,955
Loan Recoveries $ 252 $ 169 $ 317 $ 216
----------- ----------- ----------- -----------
Net
Charge-Offs $ 9,880 $ 3,785 $ 2,290 $ 3,739
Allowance for
loan and
lease
losses $ 18,528 $ 18,408 $ 18,093 $ 17,683
Nonaccrual
Loans $ 47,872 $ 34,892 $ 38,115 $ 37,814
Loans 90 days
past due $ 93 $ 119 $ 109 $ 94
Restructured
loans $ 5,811 $ 6,685 $ 6,023 $ 1,679
----------- ----------- ----------- -----------
Total non
performing
loans $ 53,776 $ 41,696 $ 44,247 $ 39,587
Other real
estate owned
& other
assets $ 19,211 $ 17,893 $ 18,065 $ 15,819
----------- ----------- ----------- -----------
Total non
performing
assets $ 72,987 $ 59,589 $ 62,312 $ 55,406
Problem Loans
Still
Performing $ 63,935 $ 56,156 $ 41,188 $ 40,521
----------- ----------- ----------- -----------
Total Problem
Assets $ 136,922 $ 115,745 $ 103,500 $ 95,927
Net loan
charge-offs
to average
loans 4.08% 1.54% 0.93% 1.51%
Allowance for
losses to
total loans 1.97% 1.88% 1.83% 1.78%
Non performing
loans to
gross loans 5.71% 4.25% 4.47% 3.99%
Non performing
assets to
total assets 4.67% 3.96% 4.04% 3.56%
Allowance to
non performing
loans 34.45% 44.15% 40.89% 44.67%
END OF PERIOD
BALANCES
Loans and
leases
$ 941,732 $ 981,038 $ 989,839 $ 991,402
Total earning
assets $ 1,408,525 $ 1,383,659 $ 1,421,653 $ 1,435,370
Total assets $ 1,562,401 $ 1,505,709 $ 1,542,747 $ 1,555,450
Deposits $ 1,136,078 $ 1,080,194 $ 1,065,770 $ 1,095,605
Interest
Bearing
Liabilities $ 1,282,993 $ 1,234,705 $ 1,267,718 $ 1,286,289
Shareholders'
equity $ 120,977 $ 120,413 $ 121,348 $ 128,081
Total Shares
Outstanding 16,148,482 16,139,538 16,132,513 16,128,321
AVERAGE BALANCES
Loans and
leases $ 963,445 $ 980,466 $ 992,618 $ 998,060
Total earning
assets $ 1,436,265 $ 1,398,768 $ 1,432,923 $ 1,444,037
Total assets $ 1,557,430 $ 1,505,823 $ 1,536,884 $ 1,545,048
Deposits $ 1,144,238 $ 1,076,734 $ 1,076,046 $ 1,109,664
Interest
Bearing
Liabilities $ 1,297,202 $ 1,245,873 $ 1,273,052 $ 1,283,990
Shareholders'
equity $ 121,969 $ 123,355 $ 129,353 $ 129,175
Quarterly Year to Date
=========== ========================
(dollars in thousands 2007
except per share data) 4th Qtr 2008 2007
----------- ----------- -----------
EARNINGS
Net interest income $ 10,131 $ 42,389 $ 42,769
FTE Net interest income $ 10,232 $ 43,752 $ 43,957
Provision for loan and lease
losses $ 8,907 $ 18,000 $ 11,407
Non-interest income $ 3,824 $ 15,985 $ 15,634
Non-interest expense $ 9,601 $ 39,999 $ 37,234
Net income (loss) $ (2,706) $ 1,692 $ 7,713
Basic earnings (loss)
per share $ (0.17) $ 0.10 $ 0.47
Diluted earnings (loss)
per share $ (0.17) $ 0.10 $ 0.47
Average shares outstanding 16,135,339 16,134,570 16,415,425
Average diluted shares
outstanding 16,145,958 16,165,574 16,426,044
PERFORMANCE RATIOS
Return on average assets -0.70% 0.11% 0.50%
Return on average
common equity -8.05% 1.34% 5.71%
Base Margin 2.74% 2.91% 2.91%
FTE Adjustment 0.03% 0.10% 0.08%
Loan Fees 0.06% 0.06% 0.07%
----------- ----------- -----------
FTE Net Interest Margin 2.83% 3.07% 3.06%
Efficiency ratio 60.16% 60.36% 60.19%
Full-time equivalent
employees 404 378 420
CAPITAL
Average equity to
average assets 8.66% 8.20% 8.83%
Book value per share $ 7.90 $ 7.49 $ 7.90
Cash dividend per share $ 0.18 $ 0.54 $ 0.72
ASSET QUALITY
Loan Charge-Offs $ 3,204 $ 20,648 $ 6,387
Loan Recoveries $ 195 $ 954 $ 1,438
----------- ----------- -----------
Net Charge-Offs $ 3,009 $ 19,694 $ 4,949
Allowance for loan and lease
losses $ 20,222 $ 18,528 $ 20,222
Nonaccrual Loans $ 30,459 $ 47,872 $ 30,459
Loans 90 days past due $ 102 $ 93 $ 102
Restructured loans $ 3,367 $ 5,811 $ 3,367
----------- ----------- -----------
Total non performing
loans $ 33,928 $ 53,776 $ 33,928
Other real estate owned
& other assets $ 12,565 $ 19,211 $ 12,565
----------- ----------- -----------
Total non performing
assets $ 46,493 $ 72,987 $ 46,493
Problem Loans
Still Performing $ 41,022 $ 63,935 $ 41,022
----------- ----------- -----------
Total Problem Assets $ 87,515 $ 136,922 $ 87,515
Net loan charge-offs
to average loans 1.19% 2.00% 0.49%
Allowance for losses to total
loans 2.02% 1.97% 2.02%
Non performing loans to gross
loans 3.39% 5.71% 3.39%
Non performing assets to total
assets 2.99% 4.67% 2.99%
Allowance to non
performing loans 59.60% 34.45% 59.60%
END OF PERIOD BALANCES
Loans and leases $ 1,002,259 $ 941,732 $ 1,002,259
Total earning assets $ 1,440,317 $ 1,408,525 $ 1,440,317
Total assets $ 1,556,806 $ 1,562,401 $ 1,556,806
Deposits $ 1,109,980 $ 1,136,078 $ 1,109,980
Interest Bearing Liabilities $ 1,273,665 $ 1,282,993 $ 1,273,665
Shareholders' equity $ 127,447 $ 120,977 $ 127,447
Total Shares Outstanding 16,124,997 16,148,482 16,124,997
AVERAGE BALANCES
Loans and leases $ 1,002,948 $ 983,585 $ 1,000,340
Total earning assets $ 1,436,545 $ 1,427,942 $ 1,430,519
Total assets $ 1,539,446 $ 1,536,271 $ 1,530,064
Deposits $ 1,094,346 $ 1,101,719 $ 1,089,028
Interest Bearing Liabilities $ 1,264,772 $ 1,275,011 $ 1,253,368
Shareholders' equity $ 133,363 $ 125,945 $ 135,074
MBT FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
-------------------------------------------------------------------
Quarter Ended
Dollars in thousands December 31,
(except per share data) 2008 2007
Interest Income
Interest and fees on loans $ 14,584 $ 17,617
Interest on investment securities-
Tax-exempt 913 422
Taxable 4,693 4,947
Interest on federal funds sold 13 3
-------------------------------------------------------------------
Total interest income 20,203 22,989
Interest Expense
Interest on deposits 6,713 8,209
Interest on borrowed funds 3,767 4,649
Total interest expense 10,480 12,858
Net Interest Income 9,723 10,131
Provision For Loan Losses 10,000 8,907
Net Interest Income After
Provision For Loan Losses (277) 1,224
Other Income
Income from wealth management services 996 1,188
Service charges and other fees 1,576 1,603
Net gain (loss) on sales of securities 51 (176)
Origination fees on mortgage loans sold 69 128
Bank Owned Life Insurance income 405 335
Other 803 746
Total other income 3,900 3,824
-------------------------------------------------------------------
Other Expenses
Salaries and employee benefits 4,501 4,956
Occupancy expense 879 897
Equipment expense 810 786
Marketing expense 359 408
Professional fees 310 363
Net loss on other real estate owned 133 800
Other 1,781 1,391
Total other expenses 8,773 9,601
Loss Before Income Taxes (5,150) (4,553)
Income Tax Benefit (2,153) (1,847)
Net Loss $(2,997) $(2,706)
===================================================================
Basic Loss Per Common Share $ (0.19) $ (0.17)
===================================================================
Diluted Loss Per Common Share $ (0.19) $ (0.17)
-------------------------------------------------------------------
Dividends Declared Per Common Share $ 0.09 $ 0.18
-------------------------------------------------------------------
MBT FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
------------------------------------------------------------------
Year Ended
Dollars in thousands December 31,
(except per share data) 2008 2007
Interest Income
Interest and fees on loans $62,472 $71,245
Interest on investment securities-
Tax-exempt 3,390 3,177
Taxable 19,005 18,985
Interest on federal funds sold 36 144
------------------------------------------------------------------
Total interest income 84,903 93,551
Interest Expense
Interest on deposits 26,835 32,422
Interest on borrowed funds 15,679 18,360
Total interest expense 42,514 50,782
Net Interest Income 42,389 42,769
Provision For Loan Losses 18,000 11,407
Net Interest Income After
Provision For Loan Losses 24,389 31,362
Other Income
Income from trust services 4,329 4,577
Service charges and other fees 6,371 6,301
Net gain (loss) on sales of securities 422 (80)
Origination fees on mortgage loans sold 426 690
Bank Owned Life Insurance income 1,390 1,294
Other 3,047 2,852
Total other income 15,985 15,634
------------------------------------------------------------------
Other Expenses
Salaries and employee benefits 20,614 21,367
Occupancy expense 3,591 3,466
Equipment expense 3,290 3,261
Marketing expense 1,253 1,455
Professional fees 1,635 1,508
Net loss on other real estate owned 2,737 822
Other 6,879 5,355
Total other expenses 39,999 37,234
Income (Loss) Before Income Taxes 375 9,762
Income Tax Expense (Benefit) (1,317) 2,049
Net Income $ 1,692 $ 7,713
==================================================================
Basic Earnings Per Common Share $ 0.10 $ 0.47
==================================================================
Diluted Earnings Per Common Share $ 0.10 $ 0.47
------------------------------------------------------------------
Dividends Declared Per Common Share $ 0.54 $ 0.72
------------------------------------------------------------------
MBT FINANCIAL CORP
CONSOLIDATED BALANCE SHEETS
Dec. 31,
2008 Dec. 31,
Dollars in thousands (Unaudited) 2007
Assets
Cash and Cash Equivalents
Cash and due from banks $ 50,786 $ 25,113
Total cash and cash equivalents 50,786 25,113
Securities - Held to Maturity 46,840 44,734
Securities - Available for Sale 406,117 380,238
Federal Home Loan Bank stock - at cost 13,086 13,086
Loans held for sale 784 1,431
Loans - Net 922,420 980,606
Accrued interest receivable and
other assets 43,973 36,370
Bank Owned Life Insurance 45,488 42,509
Premises and Equipment - Net 32,907 32,719
Total assets $1,562,401 $1,556,806
-------------------------------------------------------------------
Liabilities
Deposits:
Non-interest bearing $ 144,585 $ 141,115
Interest-bearing 991,493 968,865
-------------------------------------------------------------------
Total deposits 1,136,078 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 13,846 14,579
Total liabilities 1,441,424 1,429,359
Shareholders' Equity
Common stock (no par value) -- --
Retained Earnings 123,217 129,917
Accumulated other comprehensive income (2,240) (2,470)
Total shareholders' equity 120,977 127,447
Total liabilities and
shareholders' equity $1,562,401 $1,556,806
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