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 thousands				June 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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