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MBT Financial Corp. Announces Third Quarter 2015 Profit

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MONROE, Mich., Oct. 26, 2015 (GLOBE NEWSWIRE) -- MBT Financial Corp., (Nasdaq: MBTF), the parent company of Monroe Bank & Trust, reported a net profit of $3,006,000 ($0.13 per share, basic and diluted), in the third quarter of 2015, compared to a profit of $1,712,000 ($0.08 per share, basic and $0.07 per share, diluted), in the third quarter of 2014. The net profit for the nine months ended September 30, 2015 was $8,068,000 ($0.35 per share, basic and diluted), compared to $5,166,000 ($0.24 per share, basic and $0.23 per share, diluted) in the nine months ended September 30, 2014.

Earnings for the Company improved this quarter due to improvements in net interest income, non-interest income, and non-interest expenses. The net interest margin decreased from 3.17% in the third quarter of 2014 to 3.11% in the third quarter of 2015, but the average amount of interest earning assets increased $65.6 million. As a result, net interest income improved by 4.2% in the third quarter of 2015 compared to the third quarter of 2014. 

The provision for loan losses increased $500,000 compared to the third quarter of 2014 from a recovery of $700,000 in 2014 to a recovery of $200,000 this quarter. Improving asset quality and recoveries of loans previously charged off allowed the bank to maintain an adequate Allowance for Loan Losses while recording its second negative quarterly provision in 2015. Loans charged off during the quarter totaled $192,000, while $309,000 was recovered on loans charged off previously. Total Loans increased $14.5 million during the first three quarters of 2015, but the continued improvement in asset quality enabled the Company to reduce the Allowance for Loan and Lease Losses from 2.24% of loans at the end of 2014 to 2.08% as of the end of the third quarter.

Non-interest income increased $1.9 million, or 87.2% in the third quarter of 2015 compared to the third quarter of 2014. Excluding gains and losses from securities and other real estate transactions, non-interest income increased $147,000, or 3.9% as deposit account fees, debit card income, and mortgage loan origination fees all increased.

Total non-interest expenses decreased $196,000, or 2.1% in the third quarter of 2015 compared to the third quarter of 2014. Expenses related to Other Real Estate Owned decreased $128,000 or 68.4% due to the decrease in the number of properties owned. FDIC insurance decreased $63,000 or 22.9% as the assessment rate decreased when the FDIC and the State of Michigan terminated the Bank's informal regulatory agreement in 2015.

Total assets of the company increased $38.1 million, or 3.0% compared to December 31, 2014. Total loans increased $14.5 million since the end of 2014. Capital increased $11.6 million since the end of last year primarily due to the year to date profit of $8.1 million. The Accumulated Other Comprehensive Income (AOCI) component of capital increased $3.3 million compared to the end of 2014. The AOCI increased mainly due to an increase in the market values of our investment securities that are classified as available for sale. The ratio of equity to assets increased from 10.52% at the end of 2014 to 11.10% at September 30, 2015. The Bank's Tier 1 Leverage ratio increased from 9.55% as of December 31, 2014 to 10.63% as of September 30, 2015.

H. Douglas Chaffin, President and CEO, commented, "We are pleased with our results for the first three quarters of 2015, and we believe that our balance sheet is positioned to produce better earnings results when interest rates increase. While we remain concerned about the effect of global and national issues on our local economy, we plan to continue our efforts to improve profitability by growing our loan portfolio and improving our operational efficiency.  After the end of the third quarter we began an efficiency initiative that will provide meaningful expense reductions beginning in the first quarter of 2016. Our current environment still presents challenges, but 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 third quarter results on Tuesday, October 27, 2015, 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 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 #10073255. The replay will be available until November 27, 2015 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 ("MBT"). Founded in 1858, MBT is one of the largest independently owned community banks in Southeast Michigan.  With over $1.3 billion in assets, MBT is a full-service bank, offering a complete range of business and personal accounts, credit and mortgage options, investment and retirement services and award-winning financial literacy outreach.  MBT employee volunteers contribute approximately 9,000 hours of community service annually. MBT's Commercial Lending Group is a top SBA and MEDC lending partner.  MBT's Wealth Management Group ("WMG") is one of the largest and most respected in Michigan.  The Michigan Bankers Association ranks MBT fourth among all Michigan banks for total trust assets.  With offices and ATMs in Monroe, Wayne, and Lenawee Counties, convenient mobile and online banking, a robust online and social media presence and a comprehensive array of products and services, MBT prides itself in offering World Class Banking with a Local Address. Visit MBT's website at www.mbandt.com.

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 Year to Date
     2015   2015   2015   2014   2014     
(dollars in thousands except per share data) 3rd Qtr 2nd Qtr 1st Qtr 4th Qtr 3rd Qtr  2015   2014 
                 
EARNINGS              
 Net interest income $  9,224  $  9,081  $  9,342  $  8,802  $  8,852  $  27,647  $  25,899 
 FTE Net interest income $  9,358  $  9,213  $  9,474  $  8,934  $  8,989  $  28,045  $  26,322 
 Provision for loan and lease losses $  (200) $  -   $  (800) $  -   $  (700) $  (1,000) $  (500)
 Non interest income $  3,978  $  3,805  $  3,625  $  3,980  $  2,125  $  11,408  $  9,373 
 Non interest expense $  9,166  $  9,730  $  9,819  $  9,815  $  9,362  $  28,715  $  28,852 
 Net income $  3,006  $  2,285  $  2,777  $  2,149  $  1,712  $  8,068  $  5,166 
 Basic earnings per share $  0.13  $  0.10  $  0.12  $  0.09  $  0.08  $  0.35  $  0.24 
 Diluted earnings per share $  0.13  $  0.10  $  0.12  $  0.09  $  0.07  $  0.35  $  0.23 
 Average shares outstanding   22,748,974   22,733,739   22,721,845   22,697,204   22,691,593   22,734,952   21,911,996 
 Average diluted shares outstanding  22,949,063   22,931,544   22,906,334   22,956,549   22,986,918   22,916,444   22,203,459 
                 
PERFORMANCE RATIOS              
 Return on average assets  0.93%  0.72%  0.89%  0.70%  0.56%  0.84%  0.57%
 Return on average common equity  8.48%  6.48%  8.28%  6.45%  5.21%  7.74%  5.65%
                 
 Base Margin  3.05%  3.04%  3.10%  3.07%  3.09%  3.07%  3.09%
 FTE Adjustment  0.04%  0.04%  0.05%  0.05%  0.05%  0.04%  0.05%
 Loan Fees  0.02%  0.04%  0.12%  0.02%  0.03%  0.06%  0.03%
 FTE Net Interest Margin  3.11%  3.12%  3.27%  3.14%  3.17%  3.17%  3.17%
                 
 Efficiency ratio  67.83%  73.18%  73.66%  75.19%  71.66%  71.54%  74.51%
 Full-time equivalent employees    346     350     355     366     370     350     369 
                 
CAPITAL              
 Average equity to average assets  10.96%  11.09%  10.70%  10.78%  10.71%  10.92%  10.16%
 Book value per share $  6.42  $  6.11  $  6.17  $  5.92  $  5.76  $  6.42  $  5.76 
 Cash dividend per share $  -   $  -   $  -   $  -   $  -   $  -   $  -  
                 
ASSET QUALITY              
 Loan Charge-Offs $  192  $  407  $  322  $  455  $  3,353  $  921  $  5,689 
 Loan Recoveries $  309  $  295  $  1,105  $  533  $  2,182  $  1,709  $  3,110 
 Net Charge-Offs $  (117) $  112  $  (783) $  (78) $  1,171  $  (788) $  2,579 
                 
 Allowance for loan and lease losses $  12,996  $  13,079  $  13,191  $  13,208  $  13,130  $  12,996  $  13,130 
                 
 Nonaccrual Loans $  10,623  $  11,135  $  12,329  $  13,040  $  13,351  $  10,623  $  13,351 
 Loans 90 days past due $  6  $  -   $  3  $  10  $  7  $  6  $  7 
 Restructured loans $  20,972  $  22,812  $  22,788  $  22,896  $  24,094  $  20,972  $  24,094 
  Total non performing loans $  31,601  $  33,947  $  35,120  $  35,946  $  37,452  $  31,601  $  37,452 
 Other real estate owned & other assets $  2,154  $  4,237  $  4,893  $  5,633  $  6,043  $  2,154  $  6,043 
 Nonaccrual Investment Securities $  -   $  -   $  -   $  -   $  -   $  -   $  -  
  Total non performing assets $  33,755  $  38,184  $  40,013  $  41,579  $  43,495  $  33,755  $  43,495 
                 
 Classified Loans $  34,948  $  41,952  $  46,668  $  48,978  $  48,662  $  34,948  $  48,662 
 Other real estate owned & other assets $  2,154  $  4,237  $  4,893  $  5,633  $  6,043  $  2,154  $  6,043 
 Classified Investment Securities $  -   $  -   $  -   $  -   $  -   $  -   $  -  
  Total classified assets $  37,102  $  46,189  $  51,561  $  54,611  $  54,705  $  37,102  $  54,705 
                 
 Net loan charge-offs to average loans  -0.07%  0.07%  -0.52%  -0.05%  0.78%  -0.17%  0.58%
 Allowance for loan losses to total loans  2.08%  2.09%  2.13%  2.16%  2.24%  2.08%  2.24%
 Non performing loans to gross loans  5.05%  5.43%  5.67%  5.88%  6.39%  5.05%  6.39%
 Non performing assets to total assets  2.56%  2.96%  3.06%  3.25%  3.47%  2.56%  3.47%
 Classified assets to total capital  24.54%  31.36%  35.70%  41.64%  42.73%  24.54%  42.73%
 Allowance to non performing loans  41.13%  38.53%  37.56%  36.74%  35.06%  41.13%  35.06%
                 
END OF PERIOD BALANCES              
 Loans and leases $  625,406  $  625,172  $  619,385  $  610,880  $  586,152  $  625,406  $  586,152 
 Total earning assets $  1,212,892  $  1,177,475  $  1,196,949  $  1,160,371  $  1,135,016  $  1,212,892  $  1,135,016 
 Total assets $  1,316,719  $  1,292,104  $  1,307,053  $  1,278,657  $  1,251,812  $  1,316,719  $  1,251,812 
 Deposits $  1,136,809  $  1,121,280  $  1,135,312  $  1,111,811  $  1,089,484  $  1,136,809  $  1,089,484 
 Interest Bearing Liabilities $  904,297  $  898,116  $  914,569  $  908,590  $  894,753  $  904,297  $  894,753 
 Shareholders' equity $  146,154  $  138,864  $  140,208  $  134,536  $  130,652  $  146,154  $  130,652 
 Tier 1 Capital (Bank) $  138,163  $  134,215  $  131,235  $  117,944  $  114,898  $  138,163  $  114,898 
 Total Shares Outstanding    22,761,327     22,741,898     22,730,647     22,718,077     22,694,906     22,761,327     22,694,906 
                 
AVERAGE BALANCES              
 Loans and leases $  624,921  $  621,010  $  615,994  $  606,060  $  597,771  $  620,676  $  597,699 
 Total earning assets $  1,190,561  $  1,183,291  $  1,176,825  $  1,131,448  $  1,124,988  $  1,183,612  $  1,111,019 
 Total assets $  1,283,384  $  1,275,744  $  1,270,661  $  1,225,996  $  1,217,640  $  1,276,642  $  1,202,540 
 Deposits $  1,130,807  $  1,121,658  $  1,124,633  $  1,085,325  $  1,079,425  $  1,125,723  $  1,068,156 
 Interest Bearing Liabilities $  903,648  $  906,725  $  917,079  $  880,276  $  884,832  $  909,102  $  883,221 
 Shareholders' equity $  140,619  $  141,507  $  135,971  $  132,121  $  130,404  $  139,382  $  122,203 
                 


MBT FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
           
    Quarter Ended September 30, Nine Months Ended September 30,
Dollars in thousands (except per share data) 2015   2014   2015   2014 
Interest Income       
Interest and fees on loans$  7,225  $  7,255  $  21,811  $  21,355 
Interest on investment securities-       
 Tax-exempt   278     288     826     892 
 Taxable   2,437     2,222     7,301     6,540 
Interest on balances due from banks   24     32     64     86 
   Total interest income   9,964     9,797     30,002     28,873 
           
Interest Expense       
Interest on deposits   562     767     1,826     2,423 
Interest on borrowed funds   178     178     529     551 
   Total interest expense   740     945     2,355     2,974 
           
Net Interest Income   9,224     8,852     27,647     25,899 
Provision For Loan Losses   (200)    (700)    (1,000)    (500)
           
Net Interest Income After       
Provision For Loan Losses   9,424     9,552     28,647     26,399 
           
Other Income       
Income from wealth management services   1,163     1,194     3,576     3,496 
Service charges and other fees   1,134     1,054     3,058     2,954 
Debit Card income   594     557     1,749     1,588 
Net gain on sales of securities   16     (1,020)    274     (744)
Net gain (loss) on other real estate owned   36     (634)    (248)    (964)
Origination fees on mortgage loans sold   184     80     450     230 
Bank Owned Life Insurance income   358     357     991     1,062 
Other real estate owned rent   68     99     205     364 
Other    425     438     1,353     1,387 
   Total other income   3,978     2,125     11,408     9,373 
           
Other Expenses       
Salaries and employee benefits   5,694     5,631     17,318     17,163 
Occupancy expense   648     626     2,074     2,040 
Equipment expense   708     723     2,232     2,002 
Marketing expense   267     225     821     640 
Professional fees   481     681     1,607     1,620 
Other real estate owned expense   59     187     364     887 
FDIC deposit insurance assessment   212     275     1,055     1,535 
Bonding and other insurance expense   203     258     660     777 
Telephone expense   113     108     317     355 
Other    781     648     2,267     1,833 
   Total other expenses   9,166     9,362     28,715     28,852 
           
Profit Before Income Taxes   4,236     2,315     11,340     6,920 
Income Tax Expense   1,230     603     3,272     1,754 
Net Profit$  3,006  $  1,712  $  8,068  $  5,166 
           
Basic Earnings Per Common Share$  0.13  $  0.08  $  0.35  $  0.24 
           
Diluted Earnings Per Common Share$  0.13  $  0.07  $  0.35  $  0.23 
           
Dividends Declared Per Common Share$  -   $  -   $  -   $  -  
           


MBT FINANCIAL CORP.
CONSOLIDATED BALANCE SHEETS
       
       
    (Unaudited)  
Dollars in thousandsSeptember 30, 2015 December 31, 2014
Assets    
Cash and Cash Equivalents   
 Cash and due from banks   
  Non-interest bearing$  8,205  $  15,957 
  Interest bearing   58,220     36,165 
  Total cash and cash equivalents   66,425     52,122 
       
Securities - Held to Maturity   37,492     32,613 
Securities - Available for Sale   487,626     473,176 
Federal Home Loan Bank stock - at cost   4,148     7,537 
Loans held for sale   1,597     548 
       
Loans    623,809     610,332 
Allowance for Loan Losses   (12,996)    (13,208)
Loans - Net   610,813     597,124 
       
Accrued interest receivable and other assets   25,275     29,465 
Other Real Estate Owned   2,154     5,615 
Bank Owned Life Insurance   52,730     51,825 
Premises and Equipment - Net   28,459     28,632 
  Total assets$  1,316,719  $  1,278,657 
       
Liabilities   
Deposits:   
 Non-interest bearing$  247,512  $  218,221 
 Interest-bearing   889,297     893,590 
  Total deposits   1,136,809     1,111,811 
       
Repurchase agreements   15,000     15,000 
Accrued interest payable and other liabilities   18,756     17,310 
  Total liabilities   1,170,565     1,144,121 
       
Shareholders' Equity   
Common stock (no par value)   23,345     23,037 
Retained Earnings   122,200     114,132 
Unearned Compensation   (15)    -  
Accumulated other comprehensive income (loss)   624     (2,633)
  Total shareholders' equity   146,154     134,536 
  Total liabilities and shareholders' equity$  1,316,719  $  1,278,657 

 


 

H. Douglas Chaffin Chief Executive Officer (734) 384-8123 doug.chaffin@mbandt.com John L. Skibski Chief Financial Officer (734) 242-1879 john.skibski@mbandt.com Julian J. Broggio Director of Marketing (734) 240-2341 julian.broggio@mbandt.com

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