MONROE, Mich., Jan. 25, 2018 (GLOBE NEWSWIRE) -- MBT Financial Corp., (Nasdaq:MBTF), the parent company of Monroe Bank & Trust, reported a preliminary net loss of $144,000 ($0.01 per share), in the fourth quarter of 2017, compared to a profit of $3,578,000 ($0.16 per share, basic and diluted), in the fourth quarter of 2016. The profit for the year ended December 31, 2017 is $10,609,000, compared to $14,501,000 for 2016. The Company recorded Federal income Tax Expense of $5,559,000 in the fourth quarter, which included $4,278,000 to adjust the value of its deferred tax assets following the enactment of the Tax Cuts and Jobs Act of 2017. When adjusting for non-recurring items such as negative loan loss provisions, gains and losses on securities, a life insurance benefit, and an adjustment to the wealth management fee income accrual, the adjusted operating income for 2017 was $19,509,000, an increase of 18.4% compared to $16,472,000 earned in 2016.

In addition, the Company announced that it will pay a quarterly dividend of $0.06 per common share and a special dividend of $0.60 per common share. The dividends will be paid as a single distribution on February 15, 2018 to shareholders of record as of February 8, 2018. This is compared to the quarterly dividend of $0.05 and special dividend of $0.70 paid in the same quarter last year.

The Company also announced that its Board of Directors authorized the repurchase of up to 2 million shares of its common stock. This represents 8.7% of the shares currently outstanding. Repurchases may be conducted from time to time in the open market or through privately negotiated transactions. The authorization commences February 1, 2018 and expires January 31, 2020. The authorization replaces a two year authorization to repurchase up to 2 million shares that is set to expire on January 31, 2018. During that authorization, 192,080 shares were repurchased.

The Net Interest Income for the fourth quarter of 2017 increased $799,000, or 8.3% as the net interest margin improved from 3.14% in the fourth quarter of 2016 to 3.43% in the fourth quarter of 2017 due to higher interest rates and growth in the loan portfolio.

The provision for loan losses was a negative expense of $500,000 for the fourth quarter of 2017, an increase of $500,000 compared to last year’s fourth quarter, when we recorded a negative expense of $1,000,000. Asset quality and historical loss ratios improved, but the growth in the loan portfolio reduced the size of the negative provision expense required to adjust the Allowance for Loan Losses. Total Loans increased $42.4 million, or 6.5% during 2017, while the Allowance for Loan and Lease Losses was reduced from $8.5 million, or 1.30% of loans to a still relatively strong $7.7 million, or 1.10%.

Non-interest income for the fourth quarter of 2017 decreased $148,000, or 3.9% compared to the fourth quarter of 2016. Excluding gains and losses on securities and ORE transactions in both periods and a gain from life insurance proceeds that occurred in the fourth quarter of 2017, the non-interest income increased $46,000, or 1.2%. Non-interest expense decreased $154,000, or 1.7%, as a $532,000 decrease in salaries and benefits was partially offset by increases in equipment expense and professional fees.

Total assets of the company decreased $9.9 million, or 0.7%, compared to December 31, 2016, to $1.35 billion. Capital decreased $8.5 million during the year as the payment of the special and regular dividends exceeded the net income. The ratio of equity to assets decreased from 10.40% at the end of 2016 to 9.84% at the end of 2017. The Bank’s Tier 1 Leverage ratio decreased from 10.75% as of December 31, 2016 to 10.33 % as of December 31, 2017.

H. Douglas Chaffin, President and CEO, commented, “We continue to see solid loan growth, and the improvement in net interest margin combined with well-controlled non-interest expenses contributed to improved core earnings this year. Our new business pipeline remains strong and we expect loan growth to continue in 2018, which should lead to further margin improvement.  Notably, we also expect credit quality to remain strong, as we see nothing that might inhibit our strong quality metrics in the near term.  Our focus on managing our capital has also allowed us to bring more value to our shareholders, through the regular and special dividends and the repurchase authorization we announced today.  We will continue to keep our eyes open for the right opportunities to grow through strategic acquisitions, while remaining disciplined in that regard.  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 Fourth Quarter 2017 results on Friday, January 26, 2018, 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 #10115518. The replay will be available until February 26, 2018 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 between 8,000 to 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, ranking fourth among all Michigan banks for total trust assets.  With offices and ATMs in Monroe, 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
				2017				2017				2017				2017				2016
(dollars in thousands except per share data)				4th Qtr				3rd Qtr				2nd Qtr				1st Qtr				4th Qtr					2017				2016
EARNINGS
	Net interest income			$	10,373			$	10,231			$	9,864			$	9,595			$	9,574			$	40,063			$	37,623
	FTE Net interest income			$	10,552			$	10,394			$	10,017			$	9,749			$	9,731			$	40,712			$	38,233
	Provision for loan and lease losses			$	(500	)		$	-			$	-			$	(200	)		$	(1,000	)		$	(700	)		$	(2,200	)
	Non interest income			$	3,657			$	4,035			$	4,370			$	3,820			$	3,805			$	15,882			$	17,513
	Non interest expense			$	9,115			$	8,950			$	9,008			$	9,062			$	9,269			$	36,135			$	36,598
	Net income			$	(144	)		$	3,933			$	3,640			$	3,180			$	3,578			$	10,609			$	14,501
	Basic earnings per share			$	(0.01	)		$	0.17			$	0.16			$	0.14			$	0.16			$	0.46			$	0.64
	Diluted earnings per share			$	(0.01	)		$	0.17			$	0.16			$	0.14			$	0.16			$	0.46			$	0.63
	Average shares outstanding				22,884,010				22,871,451				22,865,529				22,821,273				22,738,718			$	22,860,767			$	22,802,325
	Average diluted shares outstanding				23,044,241				23,040,960				23,006,766				22,961,425				22,905,786			$	23,019,716			$	22,937,193
PERFORMANCE RATIOS
	Return on average assets				-0.04	%			1.18	%			1.11	%			0.97	%			1.07	%			0.80	%			1.09	%
	Return on average common equity				-0.42	%			11.54	%			11.14	%			9.83	%			9.57	%			7.94	%			10.00	%
	Base Margin				3.37	%			3.30	%			3.25	%			3.16	%			3.07	%			3.27	%			3.05	%
	FTE Adjustment				0.06	%			0.05	%			0.05	%			0.05	%			0.05	%			0.05	%			0.05	%
	Loan Fees				0.00	%			0.03	%			0.01	%			0.00	%			0.02	%			0.01	%			0.01	%
	FTE Net Interest Margin				3.43	%			3.38	%			3.31	%			3.21	%			3.14	%			3.33	%			3.11	%
	Efficiency ratio				62.80	%			62.52	%			64.14	%			66.43	%			68.18	%			63.94	%			67.83	%
	Full-time equivalent employees				288				295				287				287				277				289				284
CAPITAL
	Average equity to average assets				10.34	%			10.21	%			9.95	%			9.87	%			11.21	%			10.09	%			10.93	%
	Book value per share			$	5.79			$	5.94			$	5.87			$	5.67			$	6.20			$	5.79			$	6.20
	Cash dividend per share			$	0.06			$	0.06			$	0.05			$	0.75			$	0.04			$	0.17			$	0.64
ASSET QUALITY
	Loan Charge-Offs			$	14			$	306			$	396			$	112			$	522			$	828			$	1,463
	Loan Recoveries			$	170			$	179			$	199			$	188			$	575			$	736			$	1,225
	Net Charge-Offs			$	(156	)		$	127			$	197			$	(76	)		$	(53	)		$	92			$	238
	Allowance for loan and lease losses			$	7,666			$	8,010			$	8,137			$	8,334			$	8,458			$	7,666			$	8,458
	Nonaccrual Loans			$	3,658			$	3,050			$	4,143			$	5,001			$	4,656			$	3,658			$	4,656
	Loans 90 days past due			$	3			$	5			$	3			$	9			$	10			$	3			$	10
	Restructured loans			$	9,625			$	9,859			$	10,103			$	10,318			$	14,161			$	9,625			$	14,161
		Total non performing loans		$	13,286			$	12,914			$	14,249			$	15,328			$	18,827			$	13,286			$	18,827
	Other real estate owned & other assets			$	1,452			$	1,686			$	1,542			$	1,400			$	1,634			$	1,452			$	1,634
		Total non performing assets		$	14,738			$	14,600			$	15,791			$	16,728			$	20,461			$	14,738			$	20,461
	Classified Loans			$	8,273			$	9,206			$	10,599			$	14,030			$	14,971			$	8,273			$	14,971
	Other real estate owned & other assets			$	1,452			$	1,686			$	1,542			$	1,400			$	1,634			$	1,452			$	1,634
		Total classified assets		$	9,725			$	10,892			$	12,141			$	15,430			$	16,605			$	9,725			$	16,605
	Net loan charge-offs to average loans				-0.09	%			0.07	%			0.12	%			-0.05	%			-0.03	%			0.01	%			0.04	%
	Allowance for loan losses to total loans				1.10	%			1.15	%			1.19	%			1.26	%			1.30	%			1.10	%			1.30	%
	Non performing loans to gross loans				1.91	%			1.86	%			2.08	%			2.31	%			2.88	%			1.91	%			2.88	%
	Non performing assets to total assets				1.09	%			1.08	%			1.19	%			1.24	%			1.51	%			1.09	%			1.51	%
	Classified assets to total capital				6.64	%			7.59	%			8.63	%			11.16	%			10.95	%			6.64	%			10.95	%
	Allowance to non performing loans				57.70	%			62.03	%			57.11	%			54.37	%			44.92	%			57.70	%			44.92	%
END OF PERIOD BALANCES
	Loans and leases			$	695,325			$	693,866			$	683,648			$	663,449			$	652,948			$	695,325			$	652,948
	Total earning assets			$	1,229,425			$	1,220,844			$	1,201,903			$	1,232,350			$	1,239,439			$	1,229,425			$	1,239,439
	Total assets			$	1,347,420			$	1,347,352			$	1,326,392			$	1,346,554			$	1,357,283			$	1,347,420			$	1,357,283
	Deposits			$	1,198,164			$	1,195,335			$	1,177,069			$	1,203,072			$	1,199,717			$	1,198,164			$	1,199,717
	Interest Bearing Liabilities			$	898,326			$	897,408			$	886,474			$	918,126			$	920,716			$	898,326			$	920,716
	Shareholders' equity			$	132,658			$	135,969			$	134,222			$	129,553			$	141,114			$	132,658			$	141,114
	Tier 1 Capital (Bank)			$	138,819			$	135,470			$	132,565			$	129,935			$	143,123			$	138,819			$	143,123
	Total Shares Outstanding				22,907,844				22,875,505				22,870,082				22,860,794				22,777,882				22,907,844			$	22,777,882
AVERAGE BALANCES
	Loans and leases			$	693,586			$	686,259			$	672,849			$	656,550			$	654,077			$	677,437			$	638,006
	Total earning assets			$	1,220,426			$	1,220,620			$	1,215,360			$	1,229,947			$	1,230,134			$	1,221,561			$	1,227,692
	Total assets			$	1,324,847			$	1,324,723			$	1,316,081			$	1,329,128			$	1,326,623			$	1,323,686			$	1,326,710
	Deposits			$	1,184,592			$	1,187,768			$	1,183,645			$	1,194,296			$	1,174,024			$	1,187,550			$	1,172,839
	Interest Bearing Liabilities			$	884,979			$	895,376			$	904,581			$	917,125			$	891,510			$	900,415			$	910,818
	Shareholders' equity			$	136,963			$	135,188			$	131,015			$	131,171			$	148,765			$	133,605			$	145,030

MBT FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
				Quarter Ended December 31,								Year Ended December 31,
Dollars in thousands (except per share data)					2017				2016				2017				2016
Interest Income
Interest and fees on loans				$	8,132			$	7,513			$	31,300			$	29,265
Interest on investment securities-
	Tax-exempt				356				317				1,299				1,241
	Taxable				2,200				2,077				8,707				8,791
Interest on balances due from banks					102				112				494				562
			Total interest income		10,790				10,019				41,800				39,859
Interest Expense
Interest on deposits					414				445				1,731				1,928
Interest on borrowed funds					3				-				6				308
			Total interest expense		417				445				1,737				2,236
Net Interest Income					10,373				9,574				40,063				37,623
Provision For Loan Losses					(500	)			(1,000	)			(700	)			(2,200	)
Net Interest Income After
Provision For Loan Losses					10,873				10,574				40,763				39,823
Other Income
Income from wealth management services					1,187				1,106				5,017				4,453
Service charges and other fees					1,050				1,079				4,186				4,221
Debit Card income					730				701				2,877				2,831
Net gain (loss) on sales of securities					(773	)			(8	)			(546	)			2,151
Net gain (loss) on other real estate owned					67				(24	)			(22	)			(85	)
Origination fees on mortgage loans sold					68				125				329				540
Bank Owned Life Insurance income					848				356				1,978				1,425
Other					480				470				2,063				1,977
			Total other income		3,657				3,805				15,882				17,513
Other Expenses
Salaries and employee benefits					5,380				5,912				21,400				22,443
Occupancy expense					701				728				2,825				2,730
Equipment expense					855				738				3,126				2,879
Marketing expense					361				319				1,322				1,144
Professional fees					560				471				2,339				2,138
EFT/ATM expense					259				241				1,022				1,022
Other real estate owned expense					22				19				117				148
FDIC deposit insurance assessment					107				28				428				567
Bonding and other insurance expense					119				123				486				577
Telephone expense					83				101				385				413
Other					668				589				2,685				2,537
			Total other expenses		9,115				9,269				36,135				36,598
Profit Before Income Taxes					5,415				5,110				20,510				20,738
Income Tax Expense					5,559				1,532				9,901				6,237
Net Profit				$	(144	)		$	3,578			$	10,609			$	14,501
Basic Earnings Per Common Share				$	(0.01	)		$	0.16			$	0.46			$	0.64
Diluted Earnings Per Common Share				$	(0.01	)		$	0.16			$	0.46			$	0.63
Dividends Declared Per Common Share				$	0.06			$	0.04			$	0.92			$	0.64

MBT FINANCIAL CORP.
CONSOLIDATED BALANCE SHEETS
				(Unaudited)
Dollars in thousands				December 31, 2017				December 31, 2016
Assets
Cash and Cash Equivalents
	Cash and due from banks
		Non-interest bearing		$	18,233			$	18,183
		Interest bearing			34,777				34,589
		Total cash and cash equivalents			53,010				52,772
Interest Bearing Time Deposits in Other Banks					15,196				18,946
Securities - Held to Maturity					37,163				40,741
Securities - Available for Sale					442,816				488,067
Federal Home Loan Bank stock - at cost					4,148				4,148
Loans held for sale					346				611
Loans					694,979				652,337
Allowance for Loan Losses					(7,666	)			(8,458	)
Loans - Net					687,313				643,879
Accrued interest receivable and other assets					20,463				24,901
Other Real Estate Owned					1,412				1,634
Bank Owned Life Insurance					58,153				54,415
Premises and Equipment - Net					27,400				27,169
		Total assets		$	1,347,420			$	1,357,283
Liabilities
Deposits:
	Non-interest bearing			$	299,838			$	279,001
	Interest-bearing				898,326				920,716
		Total deposits			1,198,164				1,199,717
Accrued interest payable and other liabilities					16,598				16,452
		Total liabilities			1,214,762				1,216,169
Shareholders' Equity
Common stock (no par value)					22,840				22,562
Retained Earnings					117,524				126,079
Unearned Compensation					-				(4	)
Accumulated other comprehensive loss					(7,706	)			(7,523	)
		Total shareholders' equity			132,658				141,114
		Total liabilities and shareholders' equity		$	1,347,420			$	1,357,283

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