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MBT Financial Corp. Announces Second Quarter 2016 Profit and Dividend Increase

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MONROE, Mich., July 28, 2016 (GLOBE NEWSWIRE) -- MBT Financial Corp., (Nasdaq: MBTF), the parent company of Monroe Bank & Trust, reported a preliminary net profit of $4,239,000 ($0.19 per share, basic and $0.18 diluted), in the second quarter of 2016, compared to a profit of $2,285,000 ($0.10 per share, basic and diluted), in the second quarter of 2015. Year to date profit is $7,236,000 ($0.32 per share, basic, and $0.31 diluted) compared to $5,062,000 ($0.22 per share, basic and diluted) in the first two quarters of 2015.

The Company also announced that it will pay a dividend of $0.04 per share on August 18, 2016 to shareholders of record as of August 11, 2016. This is an increase of $0.01, or 33.3% compared to the dividend paid in the second quarter of 2016. The Company did not pay a dividend in the same period in 2015.

Earnings for the Company improved this quarter due to increases in net interest income and non-interest income and decreases in the provision for loan losses and non-interest expenses compared to the second quarter of 2015. The net interest margin decreased from 3.12% in the second quarter of 2015 to 3.10% in the second quarter of 2016, however the average amount of interest earning assets increased $35.3 million, and as a result, the net interest income increased $163,000, or 1.8% in the second quarter of 2016 compared to the second quarter of 2015. 

The provision for loan losses decreased $200,000 compared to the second quarter of 2015 from no provision expense in the second quarter of 2015 to a negative expense of $200,000 recorded this quarter. Classified assets decreased 7.7% during the second quarter and the analysis of the risk in the loan portfolio indicated a need to reduce the Allowance for Loan Losses again this quarter. Total Loans increased $20.6 million during the second quarter, but the continued improvement in asset quality and historical loss ratios enabled the Company to reduce the Allowance for Loan and Lease Losses from 1.70% of loans at the end of the first quarter to 1.55% as of the end of the second quarter of 2016.

Non-interest income, excluding Other Real Estate and securities gains and losses was unchanged at $3.8 million in the second quarter of 2016 and 2015. Securities gains increased significantly, from $22,000 in the second quarter of 2015 to $1,752,000 in the second quarter of 2016. These gains were the result of bonds that were owned at discounts being called at par.

Total non-interest expenses decreased $858,000, or 8.8% in the second quarter of 2016 compared to the second quarter of 2015. Salaries and benefits decreased $351,000 or 6.1% as a result of the efficiency initiative that reduced our staffing in the fourth quarter of 2015. Expenses related to Other Real Estate Owned decreased $149,000 due to the decrease in the number of properties owned. The FDIC deposit insurance assessment decreased $238,000 as the assessment rate for FDIC insurance decreased due to the improved financial condition of the bank.

Total assets of the company decreased $18.9 million, or 1.4% compared to December 31, 2015. Capital decreased $1.7 million during the first six months of 2016 because the payment of the special and regular dividends exceeded the net income for the period. The ratio of equity to assets increased from 10.98% at the end of 2015 to 11.00% at June 30, 2016. The Bank's Tier 1 Leverage ratio decreased from 10.91% as of December 31, 2015 to 10.33% as of June 30, 2016.

H. Douglas Chaffin, President and CEO, commented, "Exclusive of the impact of the securities gains and negative provision, we are pleased with our results this quarter, especially the loan growth and improvements in net interest income and non-interest expenses. After resuming quarterly dividends earlier this year, we think it is appropriate to increase the dividend based on these results. As the economic recovery slowly continues, we plan to continue to improve profitability by growing our loan portfolio and improving our operational efficiency. We will also continue to actively manage our capital, retaining sufficient resources to fund growth, whether it is within our existing branch network or through strategic acquisition opportunities. 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 Second Quarter 2016 results on Friday, July 29, 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 #10088121. The replay will be available until August 29, 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
     2016   2016   2015   2015   2015     
(dollars in thousands except per share data) 2nd Qtr 1st Qtr 4th Qtr 3rd Qtr 2nd Qtr  2016   2015 
                 
EARNINGS              
 Net interest income $  9,244  $  9,290  $  9,328  $  9,224  $  9,081  $  18,534  $  18,423 
 FTE Net interest income $  9,393  $  9,438  $  9,469  $  9,358  $  9,213  $  18,831  $  18,687 
 Provision for loan and lease losses $  (200) $  (300) $  (2,000) $  (200) $  -   $  (500) $  (800)
 Non interest income $  5,555  $  4,114  $  3,919  $  3,978  $  3,805  $  9,669  $  7,430 
 Non interest expense $  8,872  $  9,483  $  9,485  $  9,166  $  9,730  $  18,355  $  19,549 
 Net income $  4,239  $  2,997  $  4,014  $  3,006  $  2,285  $  7,236  $  5,062 
 Basic earnings per share $  0.19  $  0.13  $  0.18  $  0.13  $  0.10  $  0.32  $  0.22 
 Diluted earnings per share $  0.18  $  0.13  $  0.18  $  0.13  $  0.10  $  0.31  $  0.22 
 Average shares outstanding   22,884,350   22,854,556   22,764,801   22,748,974   22,733,739   22,869,453   22,727,825 
 Average diluted shares outstanding  23,049,718   23,014,957   22,967,108   22,949,063   22,931,544   23,029,838   22,917,997 
                 
PERFORMANCE RATIOS              
 Return on average assets  1.28%  0.91%  1.22%  0.93%  0.72%  1.10%  0.80%
 Return on average common equity  11.87%  8.57%  10.79%  8.48%  6.48%  10.23%  7.36%
                 
 Base Margin  3.03%  3.04%  3.04%  3.05%  3.04%  3.03%  3.07%
 FTE Adjustment  0.05%  0.05%  0.05%  0.04%  0.04%  0.05%  0.05%
 Loan Fees  0.02%  0.00%  0.02%  0.02%  0.04%  0.01%  0.08%
 FTE Net Interest Margin  3.10%  3.09%  3.11%  3.11%  3.12%  3.09%  3.20%
                 
 Efficiency ratio  67.83%  69.75%  72.10%  67.83%  73.18%  68.80%  73.42%
 Full-time equivalent employees    288     288     297     337     350     288     352 
                 
CAPITAL              
 Average equity to average assets  10.80%  10.65%  11.34%  10.96%  11.09%  10.73%  10.90%
 Book value per share $  6.41  $  6.22  $  6.46  $  6.42  $  6.11  $  6.41  $  6.11 
 Cash dividend per share $  0.03  $  0.53  $  -   $  -   $  -   $  0.56  $  -  
                 
ASSET QUALITY              
 Loan Charge-Offs $  617  $  209  $  1,191  $  192  $  407  $  826  $  729 
 Loan Recoveries $  184  $  150  $  1,091  $  309  $  295  $  334  $  1,400 
 Net Charge-Offs $  433  $  59  $  100  $  (117) $  112  $  492  $  (671)
                 
 Allowance for loan and lease losses $  9,903  $  10,537  $  10,896  $  12,996  $  13,079  $  9,903  $  13,079 
                 
 Nonaccrual Loans $  7,522  $  8,079  $  8,633  $  10,623  $  11,135  $  7,522  $  11,135 
 Loans 90 days past due $  41  $  17  $  4  $  6  $  -   $  41  $  -  
 Restructured loans $  16,701  $  17,828  $  18,910  $  20,972  $  22,812  $  16,701  $  22,812 
  Total non performing loans $  24,264  $  25,924  $  27,547  $  31,601  $  33,947  $  24,264  $  33,947 
 Other real estate owned & other assets $  1,818  $  1,608  $  2,383  $  2,154  $  4,237  $  1,818  $  4,237 
  Total non performing assets $  26,082  $  27,532  $  29,930  $  33,755  $  38,184  $  26,082  $  38,184 
                 
 Classified Loans $  24,365  $  26,768  $  28,490  $  34,948  $  41,952  $  24,365  $  41,952 
 Other real estate owned & other assets $  1,818  $  1,608  $  2,383  $  2,154  $  4,237  $  1,818  $  4,237 
  Total classified assets $  26,183  $  28,376  $  30,873  $  37,102  $  46,189  $  26,183  $  46,189 
                 
 Net loan charge-offs to average loans  0.28%  0.04%  0.06%  -0.07%  0.07%  0.16%  -0.22%
 Allowance for loan losses to total loans  1.55%  1.70%  1.76%  2.08%  2.09%  1.55%  2.09%
 Non performing loans to gross loans  3.80%  4.19%  4.45%  5.05%  5.43%  3.80%  5.43%
 Non performing assets to total assets  1.97%  2.06%  2.23%  2.56%  2.96%  1.97%  2.96%
 Classified assets to total capital  17.70%  19.65%  20.06%  24.55%  31.36%  17.70%  31.36%
 Allowance to non performing loans  40.81%  40.65%  39.55%  41.13%  38.53%  40.81%  38.53%
                 
END OF PERIOD BALANCES              
 Loans and leases $  639,199  $  618,613  $  618,785  $  625,406  $  625,172  $  639,199  $  625,172 
 Total earning assets $  1,214,557  $  1,227,990  $  1,231,128  $  1,212,892  $  1,177,475  $  1,214,557  $  1,177,475 
 Total assets $  1,323,415  $  1,334,131  $  1,342,313  $  1,316,719  $  1,292,104  $  1,323,415  $  1,292,104 
 Deposits $  1,163,418  $  1,162,733  $  1,165,393  $  1,136,809  $  1,121,280  $  1,163,418  $  1,121,280 
 Interest Bearing Liabilities $  893,027  $  918,593  $  926,598  $  904,297  $  898,116  $  893,027  $  898,116 
 Shareholders' equity $  145,623  $  142,424  $  147,341  $  146,154  $  138,864  $  145,623  $  138,864 
 Tier 1 Capital (Bank) $  138,059  $  133,870  $  142,997  $  138,163  $  134,215  $  138,059  $  134,215 
 Total Shares Outstanding    22,728,558     22,902,198     22,790,707     22,761,327     22,741,898     22,728,558     22,741,898 
                 
AVERAGE BALANCES              
 Loans and leases $  625,435  $  620,010  $  621,217  $  624,921  $  621,010  $  622,723  $  618,518 
 Total earning assets $  1,218,569  $  1,227,703  $  1,211,342  $  1,190,561  $  1,183,291  $  1,223,138  $  1,180,078 
 Total assets $  1,329,935  $  1,320,975  $  1,302,176  $  1,283,384  $  1,275,744  $  1,325,454  $  1,273,216 
 Deposits $  1,173,998  $  1,164,320  $  1,139,475  $  1,130,807  $  1,121,658  $  1,169,160  $  1,123,137 
 Interest Bearing Liabilities $  920,340  $  926,618  $  902,216  $  903,648  $  906,725  $  923,480  $  911,873 
 Shareholders' equity $  143,685  $  140,684  $  147,626  $  140,619  $  141,507  $  142,184  $  138,754 
                 

 


MBT FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
           
    Quarter Ended June 30, Six Months Ended June 30,
Dollars in thousands (except per share data) 2016   2015   2016   2015 
Interest Income       
Interest and fees on loans$  7,179  $  7,154  $  14,214  $  14,586 
Interest on investment securities-       
 Tax-exempt   303     273     608     548 
 Taxable   2,218     2,436     4,744     4,864 
Interest on balances due from banks   162     14     279     40 
   Total interest income   9,862     9,877     19,845     20,038 
           
Interest Expense       
Interest on deposits   486     619     1,003     1,264 
Interest on borrowed funds   132     177     308     351 
   Total interest expense   618     796     1,311     1,615 
           
Net Interest Income   9,244     9,081     18,534     18,423 
Provision For Loan Losses   (200)    -      (500)    (800)
           
Net Interest Income After       
Provision For Loan Losses   9,444     9,081     19,034     19,223 
           
Other Income       
Income from wealth management services   1,105     1,191     2,202     2,413 
Service charges and other fees   1,016     1,030     2,024     1,924 
Debit Card income   735     591     1,409     1,155 
Net gain on sales of securities   1,752     22     2,072     258 
Net loss on other real estate owned   (1)    (21)    (57)    (284)
Origination fees on mortgage loans sold   136     137     266     266 
Bank Owned Life Insurance income   362     362     717     633 
Other    450     493     1,036     1,065 
   Total other income   5,555     3,805     9,669     7,430 
           
Other Expenses       
Salaries and employee benefits   5,399     5,750     11,017     11,624 
Occupancy expense   633     606     1,334     1,426 
Equipment expense   726     790     1,410     1,524 
Marketing expense   286     308     545     554 
Professional fees   556     550     1,208     1,126 
EFT/ATM expense   237     118     546     208 
Other real estate owned expense   30     179     94     305 
FDIC deposit insurance assessment   191     429     360     843 
Bonding and other insurance expense   214     227     336     457 
Telephone expense   91     109     217     204 
Other    509     664     1,288     1,278 
   Total other expenses   8,872     9,730     18,355     19,549 
           
Profit Before Income Taxes   6,127     3,156     10,348     7,104 
Income Tax Expense   1,888     871     3,112     2,042 
Net Profit$  4,239  $  2,285  $  7,236  $  5,062 
           
Basic Earnings Per Common Share$  0.19  $  0.10  $  0.32  $  0.22 
           
Diluted Earnings Per Common Share$  0.18  $  0.10  $  0.31  $  0.22 
           
Dividends Declared Per Common Share$  0.03  $  -   $  0.56  $  -  
           

 


MBT FINANCIAL CORP.
CONSOLIDATED BALANCE SHEETS
       
       
    (Unaudited)  
Dollars in thousandsJune 30, 2016 December 31, 2015
Assets    
Cash and Cash Equivalents   
 Cash and due from banks   
  Non-interest bearing$  15,529  $  14,996 
  Interest bearing   102,839     70,054 
  Total cash and cash equivalents   118,368     85,050 
       
Securities - Held to Maturity   39,314     41,282 
Securities - Available for Sale   429,057     496,859 
Federal Home Loan Bank stock - at cost   4,148     4,148 
Loans held for sale   919     1,477 
       
Loans    638,280     617,308 
Allowance for Loan Losses   (9,903)    (10,896)
Loans - Net   628,377     606,412 
       
Accrued interest receivable and other assets   20,106     23,365 
Other Real Estate Owned   1,808     2,383 
Bank Owned Life Insurance   53,707     53,093 
Premises and Equipment - Net   27,611     28,244 
  Total assets$  1,323,415  $  1,342,313 
       
Liabilities   
Deposits:   
 Non-interest bearing$  270,391  $  253,795 
 Interest-bearing   893,027     911,598 
  Total deposits   1,163,418     1,165,393 
       
Repurchase agreements   -      15,000 
Accrued interest payable and other liabilities   14,374     14,579 
  Total liabilities   1,177,792     1,194,972 
       
Shareholders' Equity   
Common stock (no par value)   22,315     23,492 
Retained Earnings   120,633     126,214 
Unearned Compensation   (35)    (13)
Accumulated other comprehensive income (loss)   2,710     (2,352)
  Total shareholders' equity   145,623     147,341 
  Total liabilities and shareholders' equity$  1,323,415  $  1,342,313 

 

 

 

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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