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
---------------------------------------------------------------------