MBT Financial Corp. Announces First Quarter 2018 Preliminary Earnings and Dividend Increase

Print
| Source: MBT Financial Corp.

MONROE, Mich., April 26, 2018 (GLOBE NEWSWIRE) --

MBT Financial Corp. (NASDAQ:MBTF), the parent company of Monroe Bank & Trust, reported a preliminary net profit of $3,902,000 ($0.17 per share, basic and diluted), in the first quarter of 2018, compared to a profit of $3,180,000 ($0.14 per share, basic and diluted), in the first quarter of 2017. The company also announced that it will pay a quarterly dividend of $0.07 cents per common share on May 17, 2018 to shareholders of record as of May 10, 2018. This is an increase of $0.01 per share compared to the dividend paid last quarter and an increase of $0.02 compared to the dividend paid in the same quarter last year.

The Net Interest Income for the first quarter of 2018 increased $941,000, or 9.8% as the net interest margin improved from 3.21% in the first quarter of 2017 to 3.52% in the first quarter of 2018 as higher interest rates and shifting from investment securities to loans improved the yield on earning assets.

The provision for loan losses was a negative expense of $100,000 for the first quarter of 2018, an increase of $100,000 compared to last year’s first quarter, when a negative expense of $200,000 was recorded. Asset quality and historical loss ratios improved, but the growth in the loan portfolio reduced the size of the negative provision expense required to adjust the Allowance for Loan Losses. Total Loans increased $27.3 million, or 3.9% during the first quarter of 2018, and $59.2 million, or 8.9% compared to a year ago. Even though the bank recorded a negative provision for loan losses, the recovery of previously charged off loans caused the Allowance for Loan and Lease Losses to increase from $7.7 million at the end of 2017 to $7.9 million at the end of the first quarter of 2018. Due to the loan growth, the Allowance as a percent of loans decreased during the quarter from 1.10% to 1.09%.

Non-interest income for the first quarter of 2018 decreased $36,000, or 0.9% compared to the first quarter of 2017. Excluding gains and losses on securities transactions in both periods, the non-interest income increased $75,000, or 2.0%. Non-interest expense increased $730,000, or 8.1%, mainly due to increases in salaries and benefits, equipment, and marketing expenses.

Total assets of the company decreased $21.4 million, or 1.6%, compared to December 31, 2017, to $1.33 billion. Capital decreased $15.2 million during the first quarter of 2018 primarily because the payment of the special and regular dividends exceeded the net income. The ratio of equity to assets decreased from 9.85% at the end of 2017 to 8.86% at the end of the first quarter of 2018. The Bank’s Tier 1 Leverage ratio decreased from 10.33% as of December 31, 2017 to 9.51% as of March 31, 2018.

H. Douglas Chaffin, President and CEO, commented, “We continue to see solid loan growth, and the improvement in net interest margin combined with the effects of the Tax Cuts and Jobs Act contributed to the substantial improvement in earnings this quarter. Our new business pipeline remains strong and we expect loan growth to continue the rest of this year, which should lead to further margin improvement.  Notably, we also expect credit quality to remain strong, as we see nothing that might inhibit our strong quality metrics in the near term. Our focus on managing our capital has also allowed us to bring more value to our shareholders, through the regular and special dividends paid in the first quarter and the increase in the quarterly dividend we announced today. We will continue to keep our eyes open for the right opportunities to grow through strategic acquisitions, while remaining disciplined in that regard. We remain confident in our ability to maintain our position as the premier independent provider of financial services in the communities we serve.”

Conference Call
MBT Financial Corp. will hold a conference call to discuss the First Quarter 2018 results on Friday, April 27, 2018, 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.monroe.bank. The call can also be accessed in the United States by calling toll free (877) 510-3783. The toll free number for callers in Canada is (855) 669-9657 and international callers can access the call at (412) 902-4136. A replay will be available one hour after the conclusion of the call at (877) 344-7529, Conference #10118711. The replay is available to callers from Canada at (855) 669-9658 and international callers at (412) 317-0088. The replay will be available until May 27, 2018 at 9:00 a.m. Eastern. The webcast 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 bank holding company headquartered in Monroe, Michigan, is the parent company of Monroe Bank & Trust. Founded in 1858, Monroe Bank & Trust helps customers’ remarkable stories unfold through an uncommon, optimistic culture. As one of the largest independently owned community banks in Southeast Michigan, with over $1.3 billion in assets, this full-service bank offers a complete range of business and personal accounts, mobile and online banking, offices and ATMs across Monroe and Wayne Counties, credit and mortgage options, investment and retirement services and award-winning community outreach. The bank believes in its customers, helping them with everything from day-to-day needs to long-term goals, and is ranked fourth among all Michigan banks for total trust assets.  The bank believes in its communities, supporting over 300 organizations with sponsorships and also more than 8,000 employee volunteer hours through the Monroe Bank & Trust ENLIST Volunteerism program. The bank believes in the power of knowledge, helping thousands of students and adults thrive through the Monroe Bank & Trust Financial Education program.  Monroe Bank & Trust is proud to be a trusted partner to communities and clients, and an employer of choice.  We are Monroe Bank & Trust, and we believe in the story of you.

For more information about Monroe Bank & Trust, visit www.monroe.bank.
Or, contact:
Julian Broggio
SVP, Director of Marketing
(734) 240-2341
julian.broggio@monroe.bank

 
 
MBT FINANCIAL CORP.
CONSOLIDATED FINANCIAL HIGHLIGHTS - UNAUDITED
                 
    Quarterly Year to Date
     2018   2017   2017   2017   2017     
(dollars in thousands except per share data) 1st Qtr 4th Qtr 3rd Qtr 2nd Qtr 1st Qtr  2018   2017 
                 
EARNINGS                            
 Net interest income $10,536  $10,373  $10,231  $9,864  $9,595  $10,536  $9,595 
 FTE Net interest income $10,638  $10,552  $10,394  $10,017  $9,749  $10,638  $9,749 
 Provision for loan and lease losses $(100) $(500) $-  $-  $(200) $(100) $(200)
 Non interest income $3,784  $3,657  $4,035  $4,370  $3,820  $3,784  $3,820 
 Non interest expense $9,792  $9,115  $8,950  $9,008  $9,062  $9,792  $9,062 
 Net income $3,902  $(144) $3,933  $3,640  $3,180  $3,902  $3,180 
 Basic earnings per share $0.17  $(0.01) $0.17  $0.16  $0.14  $0.17  $0.14 
 Diluted earnings per share $0.17  $(0.01) $0.17  $0.16  $0.14  $0.17  $0.14 
 Average shares outstanding  22,943,736   22,884,010   22,871,451   22,865,529   22,821,273   22,943,736   22,821,273 
 Average diluted shares outstanding  23,063,200   23,044,241   23,040,960   23,006,766   22,961,425   23,063,200   22,961,425 
                               
PERFORMANCE RATIOS                            
 Return on average assets  1.19%  -0.04%  1.18%  1.11%  0.97%  1.19%  0.97%
 Return on average common equity  12.80%  -0.42%  11.54%  11.14%  9.83%  12.80%  9.83%
                               
 Base Margin  3.48%  3.37%  3.30%  3.25%  3.16%  3.48%  3.16%
 FTE Adjustment  0.03%  0.06%  0.05%  0.05%  0.05%  0.03%  0.05%
 Loan Fees  0.01%  0.00%  0.03%  0.01%  0.00%  0.01%  0.00%
 FTE Net Interest Margin  3.52%  3.43%  3.38%  3.31%  3.21%  3.52%  3.21%
                               
 Efficiency ratio  67.41%  62.80%  62.52%  64.14%  66.43%  67.41%  66.43%
 Full-time equivalent employees  281   288   295   287   287   281   287 
                               
CAPITAL                            
 Average equity to average assets  9.31%  10.34%  10.21%  9.95%  9.87%  9.31%  9.87%
 Book value per share $5.11  $5.79  $5.94  $5.87  $5.67  $5.11  $5.67 
 Cash dividend per share $0.66  $0.06  $0.06  $0.05  $0.75  $0.66  $0.75 
                               
ASSET QUALITY                            
 Loan Charge-Offs $12  $14  $306  $396  $112  $12  $112 
 Loan Recoveries $331  $170  $179  $199  $188  $331  $188 
 Net Charge-Offs $(319) $(156) $127  $197  $(76) $(319) $(76)
                               
 Allowance for loan and lease losses $7,885  $7,666  $8,010  $8,137  $8,334  $7,885  $8,334 
                               
 Nonaccrual Loans $3,453  $3,658  $3,050  $4,143  $5,001  $3,453  $5,001 
 Loans 90 days past due $-  $3  $5  $3  $9  $-  $9 
 Restructured loans $8,290  $9,625  $9,859  $10,103  $10,318  $8,290  $10,318 
  Total non performing loans $11,743  $13,286  $12,914  $14,249  $15,328  $11,743  $15,328 
 Other real estate owned & other assets $1,229  $1,452  $1,686  $1,542  $1,400  $1,229  $1,400 
  Total non performing assets $12,972  $14,738  $14,600  $15,791  $16,728  $12,972  $16,728 
                               
 Classified Loans $8,866  $8,273  $9,206  $10,599  $14,030  $8,866  $14,030 
 Other real estate owned & other assets $1,229  $1,452  $1,686  $1,542  $1,400  $1,229  $1,400 
  Total classified assets $10,095  $9,725  $10,892  $12,141  $15,430  $10,095  $15,430 
                               
 Net loan charge-offs to average loans  -0.18%  -0.09%  0.07%  0.12%  -0.05%  -0.18%  -0.05%
 Allowance for loan losses to total loans  1.09%  1.10%  1.15%  1.19%  1.26%  1.09%  1.26%
 Non performing loans to gross loans  1.63%  1.91%  1.86%  2.08%  2.31%  1.63%  2.31%
 Non performing assets to total assets  0.98%  1.09%  1.08%  1.19%  1.24%  0.98%  1.24%
 Classified assets to total capital  7.44%  6.64%  7.59%  8.63%  11.16%  7.44%  11.16%
 Allowance to non performing loans  67.15%  57.70%  62.03%  57.11%  54.37%  67.15%  54.37%
                               
END OF PERIOD BALANCES                            
 Loans and leases $722,640  $695,325  $693,866  $683,648  $663,449  $722,640  $663,449 
 Total earning assets $1,214,209  $1,229,425  $1,220,844  $1,201,903  $1,232,350  $1,214,209  $1,232,350 
 Total assets $1,326,056  $1,347,420  $1,347,352  $1,326,392  $1,346,554  $1,326,056  $1,346,554 
 Deposits $1,193,363  $1,198,164  $1,195,335  $1,177,069  $1,203,072  $1,193,363  $1,203,072 
 Interest Bearing Liabilities $900,120  $898,326  $897,408  $886,474  $918,126  $900,120  $918,126 
 Shareholders' equity $117,502  $132,658  $135,969  $134,222  $129,553  $117,502  $129,553 
 Tier 1 Capital (Bank) $127,783  $138,819  $135,470  $132,565  $129,935  $127,783  $129,935 
 Total Shares Outstanding  22,973,261   22,907,844   22,875,505   22,870,082   22,860,794   22,973,261   22,860,794 
                               
AVERAGE BALANCES                            
 Loans and leases $705,874  $693,586  $686,259  $672,849  $656,550  $705,874  $656,550 
 Total earning assets $1,224,359  $1,220,426  $1,220,620  $1,215,360  $1,229,947  $1,224,359  $1,229,947 
 Total assets $1,327,708  $1,324,847  $1,324,723  $1,316,081  $1,329,128  $1,327,708  $1,329,128 
 Deposits $1,192,570  $1,184,592  $1,187,768  $1,183,645  $1,194,296  $1,192,570  $1,194,296 
 Interest Bearing Liabilities $898,089  $884,979  $895,376  $904,581  $917,125  $898,089  $917,125 
 Shareholders' equity $123,636  $136,963  $135,188  $131,015  $131,171  $123,636  $131,171 
                               

 

MBT FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
       
    Quarter Ended March 31,
Dollars in thousands (except per share data) 2018   2017 
Interest Income       
Interest and fees on loans$8,217  $7,364 
Interest on investment securities-       
Tax-exempt 404   310 
Taxable 2,210   2,268 
Interest on balances due from banks 125   109 
Total interest income 10,956   10,051 
           
Interest Expense       
Interest on deposits 414   456 
Interest on borrowed funds 6   - 
Total interest expense 420   456 
           
Net Interest Income 10,536   9,595 
Provision For Loan Losses (100)  (200)
           
Net Interest Income After       
Provision For Loan Losses 10,636   9,795 
           
Other Income       
Income from wealth management services 1,185   1,128 
Service charges and other fees 946   1,014 
Debit Card income 720   680 
Net gain on sales of securities (101)  10 
Net gain (loss) on other real estate owned 19   (34)
Origination fees on mortgage loans sold 62   59 
Bank Owned Life Insurance income 353   341 
Other  600   622 
Total other income 3,784   3,820 
           
Other Expenses       
Salaries and employee benefits 5,962   5,434 
Occupancy expense 721   748 
Equipment expense 793   697 
Marketing expense 377   284 
Professional fees 594   589 
EFT/ATM expense 259   248 
Other real estate owned expense 15   32 
FDIC deposit insurance assessment 107   107 
Bonding and other insurance expense 132   122 
Telephone expense 75   116 
Other  757   685 
Total other expenses 9,792   9,062 
           
Profit Before Income Taxes 4,628   4,553 
Income Tax Expense 726   1,373 
Net Profit$3,902  $3,180 
           
Basic Earnings Per Common Share$0.17  $0.14 
           
Diluted Earnings Per Common Share$0.17  $0.14 
           
Dividends Declared Per Common Share$0.66  $0.75 
           
           

 

MBT FINANCIAL CORP.
CONSOLIDATED BALANCE SHEETS
      
      
   (Unaudited)  
Dollars in thousandsMarch 31, 2018 December 31, 2017
Assets   
Cash and Cash Equivalents   
 Cash and due from banks   
  Non-interest bearing$  13,987  $  18,233 
  Interest bearing   481     34,777 
  Total cash and cash equivalents   14,468     53,010 
          
Interest Bearing Time Deposits in Other Banks   14,196     15,196 
Securities - Held to Maturity   36,907     37,163 
Securities - Available for Sale   435,837     442,816 
Federal Home Loan Bank stock - at cost   4,148     4,148 
Loans held for sale   -      346 
          
Loans   722,640     694,979 
Allowance for Loan Losses   (7,885)    (7,666)
Loans - Net   714,755     687,313 
          
Accrued interest receivable and other assets   18,949     20,463 
Other Real Estate Owned   1,229     1,412 
Bank Owned Life Insurance   58,505     58,153 
Premises and Equipment - Net   27,062     27,400 
  Total assets$  1,326,056  $  1,347,420 
          
Liabilities       
Deposits:       
 Non-interest bearing$  293,243  $  299,838 
 Interest-bearing   900,120     898,326 
  Total deposits   1,193,363     1,198,164 
          
Accrued interest payable and other liabilities   15,191     16,598 
  Total liabilities   1,208,554     1,214,762 
          
Shareholders' Equity       
Common stock (no par value)   23,078     22,840 
Retained Earnings   106,330     117,524 
Unearned Compensation   (59)    -  
Accumulated other comprehensive loss   (11,847)    (7,706)
  Total shareholders' equity   117,502     132,658 
  Total liabilities and shareholders' equity$  1,326,056  $  1,347,420