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MBT Financial Corp. Announces Preliminary Fourth Quarter and Full Year 2015 Profit

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MONROE, Mich., Jan. 25, 2016 (GLOBE NEWSWIRE) -- MBT Financial Corp., (Nasdaq: MBTF), the parent company of Monroe Bank & Trust, reported a preliminary net profit of $4,014,000 ($0.18 per share, basic and diluted), in the fourth quarter of 2015, compared to a profit of $2,149,000 ($0.09 per share, basic and diluted), in the fourth quarter of 2014. The net profit for the year ended December 31, 2015 was $12,082,000 ($0.53 per share, basic and diluted), compared to $7,315,000 ($0.33 per share, basic and diluted) in the year ended December 31, 2014.

Earnings for the Company improved this quarter largely due to the negative provision for loan losses expense of $2.0 million. Net interest income and non-interest expenses also improved compared to the fourth quarter of 2014. The net interest margin decreased from 3.14% in the fourth quarter of 2014 to 3.11% in the fourth quarter of 2015, but the average amount of interest earning assets increased $79.9 million. As a result, net interest income improved by 6.0% in the fourth quarter of 2015 compared to the fourth quarter of 2014. 

The provision for loan losses decreased $2 million compared to the fourth quarter of 2014 as no provision was recorded in the fourth quarter of 2014 and a negative expense of $2 million was recorded this quarter. Classified assets decreased 16.8% during the fourth quarter and the analysis of the risk in the loan portfolio indicated that the Allowance for Loan Losses should be reduced by $2.1 million, or 16.1% during the quarter. Total Loans decreased $6.6 million during the fourth quarter, but increased $7.9 million during the year. The continued improvement in asset quality enabled the Company to reduce the Allowance for Loan and Lease Losses from 2.16% of loans at the end of 2014 to 1.76% as of the end of 2015.

Non-interest income decreased $61,000, or 1.5% in the fourth quarter of 2015 compared to the fourth quarter of 2014. Deposit account fees and debit card income increased while wealth management income and rental income from Other Real Estate Owned decreased.

Total non-interest expenses decreased $330,000, or 3.4% in the fourth quarter of 2015 compared to the fourth quarter of 2014. Salaries and benefits decreased $298,000 or 4.9% due to an efficiency initiative that reduced our staffing in the fourth quarter of 2015. Expenses related to Other Real Estate Owned decreased $152,000 due to the decrease in the number of properties owned and FDIC deposit insurance expense decreased $239,000 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 $63.7 million, or 5.0% compared to December 31, 2014. Total loans increased $7.9 million since the end of 2014. Capital increased $12.8 million during the year primarily due to the profit of $12.1 million. The ratio of equity to assets increased from 10.52% at the end of 2014 to 10.98% at December 31, 2015. The Bank's Tier 1 Leverage ratio increased from 9.55% as of December 31, 2014 to 10.90% as of December 31, 2015.

H. Douglas Chaffin, President and CEO, commented, "We are pleased with our results for 2015. We focused on improving asset quality for the last several years, and the results of those efforts are now being fully reflected in our earnings. 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. At the beginning of the fourth quarter we began an efficiency initiative that will provide meaningful expense reductions beginning in the first quarter of 2016 while maintaining a high level of customer service and satisfaction. 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 2015 results on Tuesday, January 26, 2016, 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 #10078236. The replay will be available until February 26, 2016 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 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, Lenawee, and Wayne 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   2015   2014     
(dollars in thousands except per share data) 4th Qtr 3rd Qtr 2nd Qtr 1st Qtr 4th Qtr  2015   2014 
                 
EARNINGS              
 Net interest income $9,328  $9,224  $9,081  $9,342  $8,802  $36,975  $34,701 
 FTE Net interest income $9,469  $9,358  $9,213  $9,474  $8,934  $37,514  $35,256 
 Provision for loan and lease losses $(2,000) $(200) $-  $(800) $-  $(3,000) $(500)
 Non interest income $3,919  $3,978  $3,805  $3,625  $3,980  $15,327  $13,353 
 Non interest expense $9,485  $9,166  $9,730  $9,819  $9,815  $38,200  $38,667 
 Net income $4,014  $3,006  $2,285  $2,777  $2,149  $12,082  $7,315 
 Basic earnings per share $0.18  $0.13  $0.10  $0.12  $0.09  $0.53  $0.33 
 Diluted earnings per share $0.18  $0.13  $0.10  $0.12  $0.09  $0.53  $0.33 
 Average shares outstanding  22,764,801   22,748,974   22,733,739   22,721,845   22,697,204   22,742,476   22,109,911 
 Average diluted shares outstanding  22,967,108   22,949,063   22,931,544   22,906,334   22,956,549   22,916,754   22,379,337 
                 
PERFORMANCE RATIOS              
 Return on average assets  1.22%  0.93%  0.72%  0.89%  0.70%  0.94%  0.61%
 Return on average common equity  10.79%  8.48%  6.48%  8.28%  6.45%  8.54%  5.87%
                 
 Base Margin  3.04%  3.05%  3.04%  3.10%  3.07%  3.06%  3.08%
 FTE Adjustment  0.05%  0.04%  0.04%  0.05%  0.05%  0.05%  0.05%
 Loan Fees  0.02%  0.02%  0.04%  0.12%  0.02%  0.05%  0.02%
 FTE Net Interest Margin  3.11%  3.11%  3.12%  3.27%  3.14%  3.16%  3.15%
                 
 Efficiency ratio  72.10%  67.83%  73.18%  73.66%  75.19%  71.68%  74.69%
 Full-time equivalent employees  297   337   350   355   366   335   368 
                 
CAPITAL              
 Average equity to average assets  11.34%  10.96%  11.09%  10.70%  10.78%  11.03%  10.32%
 Book value per share $6.46  $6.42  $6.11  $6.17  $5.92  $6.46  $5.92 
 Cash dividend per share $-  $-  $-  $-  $-  $-  $- 
                 
ASSET QUALITY              
 Loan Charge-Offs $1,191  $192  $407  $322  $455  $2,112  $6,114 
 Loan Recoveries $1,091  $309  $295  $1,105  $533  $2,800  $3,643 
 Net Charge-Offs $100  $(117) $112  $(783) $(78) $(688) $2,471 
                 
 Allowance for loan and lease losses $10,896  $12,996  $13,079  $13,191  $13,208  $10,896  $13,208 
                 
 Nonaccrual Loans $8,633  $10,623  $11,135  $12,329  $13,040  $8,633  $13,040 
 Loans 90 days past due $4  $6  $-  $3  $10  $4  $10 
 Restructured loans $18,910  $20,972  $22,812  $22,788  $22,896  $18,910  $22,896 
  Total non performing loans $27,547  $31,601  $33,947  $35,120  $35,946  $27,547  $35,946 
 Other real estate owned & other assets $2,383  $2,154  $4,237  $4,893  $5,633  $2,383  $5,633 
 Nonaccrual Investment Securities $-  $-  $-  $-  $-  $-  $- 
  Total non performing assets $29,930  $33,755  $38,184  $40,013  $41,579  $29,930  $41,579 
                 
 Classified Loans $28,490  $34,948  $41,952  $46,668  $48,978  $28,490  $48,978 
 Other real estate owned & other assets $2,383  $2,154  $4,237  $4,893  $5,633  $2,383  $5,633 
  Total classified assets $30,873  $37,102  $46,189  $51,561  $54,611  $30,873  $54,611 
                 
 Net loan charge-offs to average loans  0.06%  -0.07%  0.07%  -0.52%  -0.05%  -0.11%  0.41%
 Allowance for loan losses to total loans  1.76%  2.08%  2.09%  2.13%  2.16%  1.76%  2.16%
 Non performing loans to gross loans  4.45%  5.05%  5.43%  5.67%  5.88%  4.45%  5.88%
 Non performing assets to total assets  2.23%  2.56%  2.96%  3.06%  3.25%  2.23%  3.25%
 Classified assets to total capital  20.06%  24.55%  31.36%  35.70%  41.64%  20.06%  41.64%
 Allowance to non performing loans  39.55%  41.13%  38.53%  37.56%  36.74%  39.55%  36.74%
                 
END OF PERIOD BALANCES              
 Loans and leases $618,785  $625,406  $625,172  $619,385  $610,880  $618,785  $610,880 
 Total earning assets $1,231,128  $1,212,892  $1,177,475  $1,196,949  $1,160,371  $1,231,128  $1,160,371 
 Total assets $1,342,313  $1,316,719  $1,292,104  $1,307,053  $1,278,657  $1,342,313  $1,278,657 
 Deposits $1,165,393  $1,136,809  $1,121,280  $1,135,312  $1,111,811  $1,165,393  $1,111,811 
 Interest Bearing Liabilities $926,598  $904,297  $898,116  $914,569  $908,590  $926,598  $908,590 
 Shareholders' equity $147,341  $146,154  $138,864  $140,208  $134,536  $147,341  $134,536 
 Tier 1 Capital (Bank) $142,997  $138,163  $134,215  $131,235  $117,944  $142,997  $117,944 
 Total Shares Outstanding  22,790,707   22,761,327   22,741,898   22,730,647   22,718,077   22,790,707   22,718,077 
                 
AVERAGE BALANCES              
 Loans and leases $621,217  $624,921  $621,010  $615,994  $606,060  $620,811  $599,803 
 Total earning assets $1,211,342  $1,190,561  $1,183,291  $1,176,825  $1,131,448  $1,190,599  $1,116,165 
 Total assets $1,302,176  $1,283,384  $1,275,744  $1,270,661  $1,225,996  $1,283,078  $1,208,450 
 Deposits $1,139,475  $1,130,807  $1,121,658  $1,124,633  $1,085,325  $1,129,191  $1,072,485 
 Interest Bearing Liabilities $902,216  $903,648  $906,725  $917,079  $880,276  $907,368  $882,480 
 Shareholders' equity $147,626  $140,619  $141,507  $135,971  $132,121  $141,460  $124,702 
                 

 

MBT FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
           
    Quarter Ended December 31, Year Ended December 31,
Dollars in thousands (except per share data) 2015   2014   2015   2014 
Interest Income       
Interest and fees on loans$7,201  $7,096  $29,012  $28,451 
Interest on investment securities-       
 Tax-exempt 290   279   1,116   1,171 
 Taxable 2,507   2,275   9,808   8,815 
Interest on balances due from banks 41   16   105   102 
   Total interest income 10,039   9,666   40,041   38,539 
           
Interest Expense       
Interest on deposits 533   686   2,359   3,109 
Interest on borrowed funds 178   178   707   729 
   Total interest expense 711   864   3,066   3,838 
           
Net Interest Income 9,328   8,802   36,975   34,701 
Provision For Loan Losses (2,000)  -   (3,000)  (500)
           
Net Interest Income After       
Provision For Loan Losses 11,328   8,802   39,975   35,201 
           
Other Income       
Income from wealth management services 1,152   1,253   4,728   4,749 
Service charges and other fees 1,115   1,025   4,173   3,979 
Debit Card income 689   586   2,438   2,174 
Net gain (loss) on sales of securities 124   90   398   (654)
Net gain (loss) on other real estate owned (36)  18   (284)  (946)
Origination fees on mortgage loans sold 129   148   579   378 
Bank Owned Life Insurance income 362   354   1,353   1,416 
Other real estate owned rent 12   72   217   436 
Other  372   434   1,725   1,821 
   Total other income 3,919   3,980   15,327   13,353 
           
Other Expenses       
Salaries and employee benefits 5,777   6,075   23,095   23,238 
Occupancy expense 696   696   2,770   2,736 
Equipment expense 794   725   3,026   2,727 
Marketing expense 283   199   1,104   839 
Professional fees 523   512   2,130   2,132 
Other real estate owned expense 8   160   372   1,047 
FDIC deposit insurance assessment 175   414   1,230   1,949 
Bonding and other insurance expense 206   258   866   1,035 
Telephone expense 105   119   422   474 
Other  918   657   3,185   2,490 
   Total other expenses 9,485   9,815   38,200   38,667 
           
Profit Before Income Taxes 5,762   2,967   17,102   9,887 
Income Tax Expense 1,748   818   5,020   2,572 
Net Profit$4,014  $2,149  $12,082  $7,315 
           
Basic Earnings Per Common Share$0.18  $0.09  $0.53  $0.33 
           
Diluted Earnings Per Common Share$0.18  $0.09  $0.53  $0.33 
           
Dividends Declared Per Common Share$-  $-  $-  $- 
           

 

MBT FINANCIAL CORP.
CONSOLIDATED BALANCE SHEETS
       
       
    (Unaudited)  
Dollars in thousandsDecember 31, 2015 December 31, 2014
Assets    
Cash and Cash Equivalents   
 Cash and due from banks   
  Non-interest bearing$14,996  $15,957 
  Interest bearing 70,054   36,165 
  Total cash and cash equivalents 85,050   52,122 
       
Securities - Held to Maturity 41,282   32,613 
Securities - Available for Sale 496,859   473,176 
Federal Home Loan Bank stock - at cost 4,148   7,537 
Loans held for sale 1,477   548 
       
Loans  617,308   610,332 
Allowance for Loan Losses (10,896)  (13,208)
Loans - Net 606,412   597,124 
       
Accrued interest receivable and other assets 23,365   29,465 
Other Real Estate Owned 2,383   5,615 
Bank Owned Life Insurance 53,093   51,825 
Premises and Equipment - Net 28,244   28,632 
  Total assets$1,342,313  $1,278,657 
       
Liabilities   
Deposits:   
 Non-interest bearing$253,795  $218,221 
 Interest-bearing 911,598   893,590 
  Total deposits 1,165,393   1,111,811 
       
Repurchase agreements 15,000   15,000 
Accrued interest payable and other liabilities 14,579   17,310 
  Total liabilities 1,194,972   1,144,121 
       
Shareholders' Equity   
Common stock (no par value) 23,492   23,037 
Retained Earnings 126,214   114,132 
Unearned Compensation (13)  - 
Accumulated other comprehensive income (loss) (2,352)  (2,633)
  Total shareholders' equity 147,341   134,536 
  Total liabilities and shareholders' equity$1,342,313  $1,278,657 


FOR FURTHER INFORMATION: 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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