MONROE, Mich., April 27, 2009 (GLOBE NEWSWIRE) -- MBT Financial Corp. (Nasdaq:MBTF), the parent company of Monroe Bank & Trust, reported a first quarter 2009 net loss of $816,000, or $0.05 per diluted share, compared to the profit of $2.6 million, or $0.16 per diluted share in the first quarter of 2008, as the provision for loan losses increased from $1.2 million in the first quarter of 2008 to $4.2 million in the first quarter of 2009.
H. Douglas Chaffin, President and CEO, commented, "The length and depth of this recession is having a significant impact on our customers. The continued weakness in the auto industry, high rates of unemployment, and depressed property values have affected all aspects of our local economy. These conditions continue to hurt our earnings through higher credit costs. However, we believe that the actions we are taking will help us through these times and leave us positioned well for the eventual economic recovery. While we expect these challenges to continue in the near future, we have maintained our position as the premier community bank locally, continuing to serve the credit and banking needs of the communities we serve in southeast Michigan."
Mr. Chaffin further commented on the Company's earnings for the quarter, "Net Interest Income decreased $240,000 compared to the first quarter of 2008 due to a decrease of $39 million in average earning assets during this period. However, our net interest margin increased from 3.00% to 3.04% as a result of our continued focus on managing our balance sheet to limit interest rate risk. Non interest income decreased $631,000 due to a variety of factors, including an Other Than Temporary Impairment (OTTI) charge in our investment portfolio. Non interest expenses increased $1,464,000, or 15.1%, largely due to substantial increases in credit related expenses, including the write down of some of our Other Real Estate Owned (OREO), and costs of maintaining our OREO properties. Excluding FDIC insurance assessments and credit related expenses, non interest expenses decreased 2.2% compared to last year."
Mr. Chaffin concluded, "Our liquidity remains strong, our capital position is very healthy, our loan loss reserve is at its highest level, and our balance sheet is structured to properly manage our interest rate risk. A number of recent cost saving initiatives will take affect later this year, and will assist our efforts to return to profitability. We believe that there will continue to be a need for community banking and wealth management services in our markets, and we have positioned our company to thrive when economic conditions improve."
Conference Call
MBT Financial Corp. will hold a conference call to discuss fourth quarter results on Tuesday, April 28, 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 twelve 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 community banks in Southeast Michigan, with $1.5 billion in assets. MBT is a full-service bank, offering a complete range of business and personal accounts, credit options, and phone and online banking services. MBT's Wealth Management Group is one of the largest and most respected in Southeastern Michigan. With 25 offices, 42 ATMs, and a comprehensive array of products and services, MBT prides itself in offering an incomparable banking experience 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 thousands except per share data Quarterly ----------------------------------------------------------- 2009 2008 2008 2008 2008 1st Qtr 4th Qtr 3rd Qtr 2nd Qtr 1st Qtr ----------- ----------- ----------- ----------- ----------- EARNINGS Net inte- rest income $ 10,213 $ 9,723 $ 11,086 $ 11,127 $ 10,453 FTE Net inte- rest income $ 10,565 $ 10,088 $ 11,417 $ 11,463 $ 10,784 Provi- sion for loan and lease losses $ 4,200 $ 10,000 $ 4,100 $ 2,700 $ 1,200 Non- inte- rest income $ 3,331 $ 3,900 $ 4,265 $ 3,858 $ 3,962 Non- inte- rest expense $ 11,162 $ 8,773 $ 11,365 $ 10,163 $ 9,698 Net income (loss) $ (816) $ (2,997) $ 324 $ 1,718 $ 2,647 Basic earn- ings (loss) per share $ (0.05) $ (0.19) $ 0.02 $ 0.11 $ 0.16 Diluted earn- ings (loss) per share $ (0.05) $ (0.19) $ 0.02 $ 0.11 $ 0.16 Average shares outsta- nding 16,165,841 16,143,902 16,136,402 16,130,806 16,127,047 Average diluted shares outsta- nding 16,181,966 16,154,652 16,147,152 16,148,006 16,127,047 PERFORM- ANCE RATIOS Return on ave- rage assets -0.22% -0.77% 0.09% 0.45% 0.69% Return on ave- rage common equity -2.70% -9.78% 1.04% 5.34% 8.24% Base Margin 2.89% 2.65% 3.08% 3.05% 2.84% FTE Adjust- ment 0.10% 0.10% 0.09% 0.09% 0.09% Loan Fees 0.05% 0.04% 0.07% 0.07% 0.07% ----------- ----------- ----------- ----------- ----------- FTE Net Inte- rest Margin 3.04% 2.79% 3.24% 3.21% 3.00% Efficie- ncy ratio 69.70% 59.11% 56.66% 61.24% 64.51% Full-time equiva- lent emplo- yees 383 384 366 384 380 CAPITAL Average equity to ave- rage assets 8.09% 7.83% 8.19% 8.42% 8.36% Book value per share $ 7.21 $ 7.49 $ 7.46 $ 7.52 $ 7.94 Cash divi- dend per share $ 0.01 $ 0.09 $ 0.09 $ 0.18 $ 0.18 ASSET QUALITY Loan Charge- Offs $ 1,575 $ 10,132 $ 3,954 $ 2,607 $ 3,955 Loan Reco- veries $ 600 $ 252 $ 169 $ 317 $ 216 ----------- ----------- ----------- ----------- ----------- Net Charge- Offs $ 975 $ 9,880 $ 3,785 $ 2,290 $ 3,739 Allow- ance for loan and lease losses $ 21,753 $ 18,528 $ 18,408 $ 18,093 $ 17,683 Nonac- crual Loans $ 50,437 $ 47,872 $ 34,892 $ 38,115 $ 37,814 Loans 90 days past due $ 864 $ 93 $ 119 $ 109 $ 94 Restru- ctured loans $ 4,901 $ 5,811 $ 6,685 $ 6,023 $ 1,679 ----------- ----------- ----------- ----------- ----------- Total non perfor- ming loans $ 56,202 $ 53,776 $ 41,696 $ 44,247 $ 39,587 Other real estate owned & other assets $ 23,627 $ 19,211 $ 17,893 $ 18,065 $ 15,819 ----------- ----------- ----------- ----------- ----------- Total non perfor- ming assets $ 79,829 $ 72,987 $ 59,589 $ 62,312 $ 55,406 Problem Loans Still Perfor- ming $ 75,127 $ 63,935 $ 56,156 $ 41,188 $ 40,521 ----------- ----------- ----------- ----------- ----------- Total Pro- blem Assets $ 154,956 $ 136,922 $ 115,745 $ 103,500 $ 95,927 Net loan charge- offs to average loans 0.42% 4.08% 1.54% 0.93% 1.51% Allowance for losses to total loans 2.35% 1.97% 1.88% 1.83% 1.78% Non per- forming loans to gross loans 6.08% 5.71% 4.25% 4.47% 3.99% Non per- forming assets to total assets 5.37% 4.67% 3.96% 4.04% 3.56% Allowance to non perfor- ming loans 38.71% 34.45% 44.15% 40.89% 44.67% END OF PERIOD BALANCES Loans and leases $ 923,919 $ 941,732 $ 981,038 $ 989,839 $ 991,402 Total earning assets $1,363,015 $1,434,098 $1,383,659 $1,421,653 $1,435,370 Total assets $1,486,405 $1,562,401 $1,505,709 $1,542,747 $1,555,450 Deposits $1,066,886 $1,136,078 $1,080,194 $1,065,770 $1,095,605 Interest Bearing Liabi- lities $1,232,573 $1,282,993 $1,234,705 $1,267,718 $1,286,289 Share- holders' equity $ 116,647 $ 120,977 $ 120,413 $ 121,348 $ 128,081 Total Shares Outstan- ding 16,178,121 16,148,482 16,139,538 16,132,513 16,128,321 AVERAGE BALANCES Loans and leases $ 934,766 $ 963,445 $ 980,466 $ 992,618 $ 998,060 Total earning assets $1,405,306 $1,436,265 $1,398,768 $1,432,923 $1,444,037 Total assets $1,513,321 $1,557,430 $1,505,823 $1,536,884 $1,545,048 Deposits $1,100,982 $1,144,238 $1,076,734 $1,076,046 $1,109,664 Interest Bearing Liabi- lities $1,258,040 $1,297,202 $1,245,873 $1,273,052 $1,283,990 Share- holders' equity $ 122,377 $ 121,969 $ 123,355 $ 129,353 $ 129,175 MBT FINANCIAL CORP. CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED --------------------------------------------------------------------- Quarter Ended March 31, Dollars in thousands (except per share data) 2009 2008 --------------------------------------------------------------------- Interest Income Interest and fees on loans $ 13,600 $ 16,428 Interest on investment securities- Tax-exempt 877 815 Taxable 4,500 4,956 Interest on balances due from banks 15 -- Interest on federal funds sold -- 1 --------------------------------------------------------------------- Total interest income 18,992 22,200 --------------------------------------------------------------------- Interest Expense Interest on deposits 5,524 7,491 Interest on borrowed funds 3,255 4,256 --------------------------------------------------------------------- Total interest expense 8,779 11,747 --------------------------------------------------------------------- Net Interest Income 10,213 10,453 Provision For Loan Losses 4,200 1,200 --------------------------------------------------------------------- Net Interest Income After Provision For Loan Losses 6,013 9,253 --------------------------------------------------------------------- Other Income Income from wealth management services 914 1,127 Service charges and other fees 1,356 1,526 Net gain (loss) on sales of securities (163) 25 Origination fees on mortgage loans sold 109 193 Bank Owned Life Insurance income 369 355 Other 746 736 --------------------------------------------------------------------- Total other income 3,331 3,962 --------------------------------------------------------------------- Other Expenses Salaries and employee benefits 5,434 5,582 Occupancy expense 914 995 Equipment expense 848 828 Marketing expense 242 241 Professional fees 458 469 Net loss on other real estate owned 1,021 35 Other 2,245 1,548 --------------------------------------------------------------------- Total other expenses 11,162 9,698 --------------------------------------------------------------------- Income (Loss) Before Income Taxes (1,818) 3,517 Income Tax Expense (Benefit) (1,002) 870 --------------------------------------------------------------------- Net Income (Loss) $ (816) $ 2,647 --------------------------------------------------------------------- Basic Earnings (Loss) Per Common Share $ (0.05) $ 0.16 --------------------------------------------------------------------- Diluted Earnings (Loss) Per Common Share $ (0.05) $ 0.16 --------------------------------------------------------------------- Dividends Declared Per Common Share $ 0.01 $ 0.18 --------------------------------------------------------------------- MBT FINANCIAL CORP. CONSOLIDATED BALANCE SHEETS March 31, 2009 December 31, Dollars in thousands (Unaudited) 2008 --------------------------------------------------------------------- Assets Cash and Cash Equivalents Cash and due from banks Non-interest bearing 15,390 24,463 Interest bearing 6,809 26,323 --------------------------------------------------------------------- Total cash and cash equivalents 22,199 50,786 Securities - Held to Maturity 41,524 46,840 Securities - Available for Sale 377,677 406,117 Federal Home Loan Bank stock - at cost 13,086 13,086 Loans held for sale 1,478 784 Loans - Net 900,688 922,420 Accrued interest receivable and other assets 51,247 43,973 Bank Owned Life Insurance 45,857 45,488 Premises and Equipment - Net 32,649 32,907 --------------------------------------------------------------------- Total assets $1,486,405 $1,562,401 --------------------------------------------------------------------- Liabilities Deposits: Non-interest bearing $ 125,813 $ 144,585 Interest-bearing 941,073 991,493 --------------------------------------------------------------------- Total deposits 1,066,886 1,136,078 Federal Home Loan Bank advances 261,500 261,500 Repurchase agreements 30,000 30,000 Interest payable and other liabilities 11,372 13,846 --------------------------------------------------------------------- Total liabilities 1,369,758 1,441,424 --------------------------------------------------------------------- Shareholders' Equity Common stock (no par value) 436 321 Retained Earnings 121,919 122,896 Accumulated other comprehensive income (5,708) (2,240) --------------------------------------------------------------------- Total shareholders' equity 116,647 120,977 --------------------------------------------------------------------- Total liabilities and shareholders' equity $1,486,405 $1,562,401 ---------------------------------------------------------------------