MONROE, Mich., April 22, 2010 (GLOBE NEWSWIRE) -- MBT Financial Corp. (Nasdaq:MBTF), the parent company of Monroe Bank & Trust, reported a first quarter 2010 net profit of $348,000, or $0.02 per share, basic and diluted, compared to the loss of $1.4 million, or $0.08 per share in the first quarter of 2009.
The Net Interest Income for the first quarter of 2010 was $9.4 million, a decrease of $808,000, or 7.9% compared to the same period in 2009. Although the net interest margin increased from 3.04% in the first quarter of 2009 to 3.11% in the first quarter of 2010, average earning assets decreased $143.8 million, causing the decrease in net interest income. Average loans decreased $108.3 million, or 11.6%, as weak economic conditions, coupled with ongoing stringent underwriting standards, continue to have a negative impact on loan demand and growth.
Non interest income, excluding securities gains and impairment charges increased from $3.5 million in the first quarter of 2009 to $3.7 million in the first quarter of 2010. This was due to improvements in all revenue sources except services charges on deposit accounts, which decreased due to lower overdraft fees. Non Interest expenses decreased $1.1 million. The bank's efforts to control expenses resulted in significant reductions in salaries, benefits, and occupancy expenses.
Total assets of the bank decreased $104.2 million compared to March 31, 2009, mainly due to the previously mentioned decrease in loan demand, and a strategic initiative to reduce higher cost deposits and borrowings. Non interest bearing demand deposits increased by 9.4% over the 12 month period, as the market continues to demonstrate the value of our customer focused community bank model. Total assets declined by only $1.8 million since the end of 2009. Due to the small profit in the quarter, and the decrease in the unrealized loss on investment securities available for sale, capital increased $2.1 million during the quarter, and the ratio of equity to assets, a key indicator of bank strength and safety, increased from 5.91% at December 31, 2009 to 6.07% at March 31, 2010. In addition, the company's liquidity position remains good, with cash and investments totaling 31.8% of assets, up from 29.9% at the end of 2009.
H. Douglas Chaffin, President and CEO, commented, "The national economic recovery is gaining strength, but the conditions in southeast Michigan are weak. Local unemployment rates remain high and property values remain low. However, we are beginning to see some signs of stability locally. Our total problem assets, which include non performing loans, other real estate owned, non accrual investments, and performing loans that are internally classified as potential problems, only increased $4.2 million, or 2.7% compared to a year ago. Over the same period, we increased our Allowance for Loan Losses $2.4 million, or 10.8%."
Mr. Chaffin concluded, "Although real estate values and unemployment rates in our market have been stable for the third consecutive quarter, we do not anticipate significant recovery in our local markets this year. We will continue to focus our efforts on improving asset quality, maintaining liquidity, strengthening capital, and controlling expenses. Our Board is currently considering various options that might be available to raise additional capital and we are seeking shareholder approval to authorize additional capital securities at our Annual Meeting of Shareholders on May 6, 2010. While we are pleased to report a small profit this quarter, we still have much work ahead of us given our current environment."
Conference Call
MBT Financial Corp. will hold a conference call to discuss first quarter results on Friday, April 23, 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 nearly $1.4 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, 41 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 | |||||
| Quarterly | |||||
| 2010 | 2009 | 2009 | 2009 | 2009 | |
| (dollars in thousands except per share data) | 1st Qtr | 4th Qtr | 3rd Qtr | 2nd Qtr | 1st Qtr |
| EARNINGS | |||||
| Net interest income | $ 9,405 | $ 10,101 | $ 10,516 | $ 10,185 | $ 10,213 |
| FTE Net interest income | $ 9,677 | $ 10,417 | $ 10,857 | $ 10,536 | $ 10,565 |
| Provision for loan and lease losses | $ 2,200 | $ 17,000 | $ 6,800 | $ 8,000 | $ 4,200 |
| Non-interest income | $ 4,041 | $ (40) | $ 3,559 | $ 3,630 | $ 3,331 |
| Non-interest expense | $ 10,898 | $ 11,798 | $ 11,390 | $ 14,589 | $ 11,997 |
| Net income (loss) | $ 348 | $ (25,112) | $ (2,325) | $ (5,373) | $ (1,367) |
| Basic earnings (loss) per share | $ 0.02 | $ (1.56) | $ (0.14) | $ (0.33) | $ (0.08) |
| Diluted earnings (loss) per share | $ 0.02 | $ (1.56) | $ (0.14) | $ (0.33) | $ (0.08) |
| Average shares outstanding | 16,216,177 | 16,204,139 | 16,192,914 | 16,182,528 | 16,165,841 |
| Average diluted shares outstanding | 16,216,708 | 16,204,139 | 16,192,914 | 16,193,278 | 16,181,966 |
| PERFORMANCE RATIOS | |||||
| Return on average assets | 0.10% | -7.17% | -0.64% | -1.48% | -0.37% |
| Return on average common equity | 1.71% | -90.17% | -8.20% | -18.31% | -4.53% |
| Base Margin | 2.99% | 3.08% | 3.08% | 3.00% | 2.89% |
| FTE Adjustment | 0.09% | 0.10% | 0.10% | 0.10% | 0.10% |
| Loan Fees | 0.03% | 0.04% | 0.06% | 0.04% | 0.05% |
| FTE Net Interest Margin | 3.11% | 3.22% | 3.24% | 3.14% | 3.04% |
| Efficiency ratio | 67.75% | 61.93% | 61.90% | 70.22% | 69.70% |
| Full-time equivalent employees | 351 | 362 | 361 | 370 | 383 |
| CAPITAL | |||||
| Average equity to average assets | 6.03% | 7.95% | 7.84% | 8.10% | 8.09% |
| Book value per share | $ 5.17 | $ 5.04 | $ 6.77 | $ 6.80 | $ 7.18 |
| Cash dividend per share | $ -- | $ -- | $ -- | $ 0.01 | $ 0.01 |
| ASSET QUALITY | |||||
| Loan Charge-Offs | $ 2,362 | $ 11,721 | $ 12,364 | $ 6,334 | $ 1,575 |
| Loan Recoveries | $ 211 | $ 211 | $ 262 | $ 456 | $ 600 |
| Net Charge-Offs | $ 2,151 | $ 11,510 | $ 12,102 | $ 5,878 | $ 975 |
| Allowance for loan and lease losses | $ 24,112 | $ 24,063 | $ 18,573 | $ 23,875 | $ 21,753 |
| Nonaccrual Loans | $ 61,722 | $ 56,992 | $ 62,038 | $ 61,917 | $ 50,437 |
| Loans 90 days past due | $ 53 | $ 20 | $ 192 | $ 300 | $ 864 |
| Restructured loans | $ 28,042 | $ 29,102 | $ 14,359 | $ 7,552 | $ 4,901 |
| Total non performing loans | $ 89,817 | $ 86,114 | $ 76,589 | $ 69,769 | $ 56,202 |
| Other real estate owned & other assets | $ 19,634 | $ 18,832 | $ 20,737 | $ 18,270 | $ 22,792 |
| Nonaccrual Investment Securities | $ 4,740 | $ 4,740 | $ -- | $ 945 | $ -- |
| Total non performing assets | $ 114,191 | $ 109,686 | $ 97,326 | $ 88,984 | $ 78,994 |
| Problem Loans Still Performing | $ 44,105 | $ 46,278 | $ 48,366 | $ 59,076 | $ 75,127 |
| Total Problem Assets | $ 158,296 | $ 155,964 | $ 145,692 | $ 148,060 | $ 154,121 |
| Net loan charge-offs to average loans | 1.06% | 5.25% | 5.34% | 2.57% | 0.42% |
| Allowance for losses to total loans | 2.93% | 2.83% | 2.11% | 2.62% | 2.35% |
| Non performing loans to gross loans | 10.91% | 10.13% | 8.71% | 7.66% | 6.08% |
| Non performing assets to total assets | 8.27% | 7.93% | 6.75% | 6.17% | 5.32% |
| Allowance to non performing loans | 26.85% | 27.94% | 24.25% | 34.22% | 38.71% |
| END OF PERIOD BALANCES | |||||
| Loans and leases | $ 823,515 | $ 849,910 | $ 879,513 | $ 910,356 | $ 923,919 |
| Total earning assets | $ 1,260,637 | $ 1,258,073 | $ 1,315,930 | $ 1,321,006 | $ 1,363,015 |
| Total assets | $ 1,381,616 | $ 1,383,369 | $ 1,442,512 | $ 1,441,582 | $ 1,485,854 |
| Deposits | $ 1,028,921 | $ 1,031,791 | $ 1,047,649 | $ 1,039,479 | $ 1,066,886 |
| Interest Bearing Liabilities | $ 1,149,728 | $ 1,155,253 | $ 1,199,403 | $ 1,189,725 | $ 1,232,573 |
| Shareholders' equity | $ 83,913 | $ 81,764 | $ 109,597 | $ 110,010 | $ 116,096 |
| Total Shares Outstanding | 16,222,177 | 16,210,110 | 16,198,785 | 16,187,277 | 16,178,121 |
| AVERAGE BALANCES | |||||
| Loans and leases | $ 826,472 | $ 869,130 | $ 899,795 | $ 918,513 | $ 934,766 |
| Total earning assets | $ 1,261,528 | $ 1,283,459 | $ 1,331,381 | $ 1,346,749 | $ 1,405,306 |
| Total assets | $ 1,369,827 | $ 1,390,421 | $ 1,434,971 | $ 1,452,339 | $ 1,513,312 |
| Deposits | $ 1,033,454 | $ 1,024,353 | $ 1,051,967 | $ 1,054,447 | $ 1,100,982 |
| Interest Bearing Liabilities | $ 1,156,617 | $ 1,158,525 | $ 1,202,082 | $ 1,212,880 | $ 1,258,040 |
| Shareholders' equity | $ 82,590 | $ 110,488 | $ 112,533 | $ 117,677 | $ 122,371 |
| MBT FINANCIAL CORP. | ||
| CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED | ||
| Quarter Ended March 31, | ||
| Dollars in thousands (except per share data) | 2010 | 2009 |
| Interest Income | ||
| Interest and fees on loans | $ 11,949 | $ 13,600 |
| Interest on investment securities-- | ||
| Tax-exempt | 638 | 877 |
| Taxable | 2,689 | 4,500 |
| Interest on balances due from banks | 38 | 15 |
| Interest on federal funds sold | -- | -- |
| Total interest income | 15,314 | 18,992 |
| Interest Expense | ||
| Interest on deposits | 3,353 | 5,524 |
| Interest on borrowed funds | 2,556 | 3,255 |
| Total interest expense | 5,909 | 8,779 |
| Net Interest Income | 9,405 | 10,213 |
| Provision For Loan Losses | 2,200 | 4,200 |
| Net Interest Income After | ||
| Provision For Loan Losses | 7,205 | 6,013 |
| Other Income | ||
| Income from wealth management services | 962 | 914 |
| Service charges and other fees | 1,271 | 1,356 |
| Net gain (loss) on sales of securities | 295 | 606 |
| Other Than Temporary Impairment on securities | (2,953) | (6,400) |
| Portion of OTTI loss recognized in other comprehensive income (before taxes) | 2,953 | 5,631 |
| -- | (769) | |
| Origination fees on mortgage loans sold | 132 | 109 |
| Bank Owned Life Insurance income | 389 | 369 |
| Other | 992 | 746 |
| Total other income | 4,041 | 3,331 |
| Other Expenses | ||
| Salaries and employee benefits | 5,069 | 5,434 |
| Occupancy expense | 805 | 914 |
| Equipment expense | 840 | 848 |
| Marketing expense | 248 | 242 |
| Professional fees | 480 | 458 |
| Collection expense | 94 | 463 |
| Net loss on other real estate owned | 1,036 | 1,856 |
| Other real estate owned expense | 751 | 299 |
| FDIC deposit insurance assessment | 631 | 436 |
| Other | 944 | 1,047 |
| Total other expenses | 10,898 | 11,997 |
| Income (Loss) Before Income Taxes | 348 | (2,653) |
| Income Tax Expense (Benefit) | -- | (1,286) |
| Net Income (Loss) | $ 348 | $ (1,367) |
| Basic Earnings (Loss) Per Common Share | $ 0.02 | $ (0.08) |
| Diluted Earnings (Loss) Per Common Share | $ 0.02 | $ (0.08) |
| Dividends Declared Per Common Share | $ -- | $ 0.01 |
| MBT FINANCIAL CORP. | |||
| CONSOLIDATED BALANCE SHEETS | |||
| March 31, 2010 | December 31, | March 31, 2009 | |
| Dollars in thousands | (Unaudited) | 2009 | (Unaudited) |
| Assets | |||
| Cash and Cash Equivalents | |||
| Cash and due from banks | |||
| Non-interest bearing | $ 14,723 | $ 18,448 | $ 15,390 |
| Interest bearing | 54,771 | 51,298 | 6,809 |
| Total cash and cash equivalents | 69,494 | 69,746 | 22,199 |
| Securities - Held to Maturity | 32,100 | 36,433 | 41,524 |
| Securities - Available for Sale | 337,165 | 307,346 | 377,677 |
| Federal Home Loan Bank stock - at cost | 13,086 | 13,086 | 13,086 |
| Loans held for sale | 940 | 931 | 1,478 |
| Loans - Net | 798,463 | 824,916 | 900,688 |
| Accrued interest receivable and other assets | 50,107 | 50,580 | 50,696 |
| Bank Owned Life Insurance | 48,342 | 47,953 | 45,857 |
| Premises and Equipment - Net | 31,919 | 32,378 | 32,649 |
| Total assets | $ 1,381,616 | $ 1,383,369 | $ 1,485,854 |
| Liabilities | |||
| Deposits: | |||
| Non-interest bearing | $ 137,693 | $ 135,038 | $ 125,813 |
| Interest-bearing | 891,228 | 896,753 | 941,073 |
| Total deposits | 1,028,921 | 1,031,791 | 1,066,886 |
| Federal Home Loan Bank advances | 228,500 | 228,500 | 261,500 |
| Repurchase agreements | 30,000 | 30,000 | 30,000 |
| Interest payable and other liabilities | 10,282 | 11,314 | 11,372 |
| Total liabilities | 1,297,703 | 1,301,605 | 1,369,758 |
| Shareholders' Equity | |||
| Common stock (no par value) | 639 | 593 | 436 |
| Retained Earnings | 88,744 | 88,396 | 121,368 |
| Accumulated other comprehensive income | (5,470) | (7,225) | (5,708) |
| Total shareholders' equity | 83,913 | 81,764 | 116,096 |
| Total liabilities and shareholders' equity | $ 1,381,616 | $ 1,383,369 | $ 1,485,854 |