MONROE, Mich., April 27, 2017 (GLOBE NEWSWIRE) — MBT Financial Corp., (Nasdaq:MBTF), the parent company of Monroe Bank & Trust, reported a preliminary net profit of $3,180,000 ($0.14 per share, basic and diluted), in the first quarter of 2017, compared to a profit of $2,997,000 ($0.13 per share, basic and diluted), in the first quarter of 2016. This represents a 6.1% increase in net income compared to last year.

The Company also announced that it will pay a quarterly dividend of $0.05 on May 18, 2017 to shareholders of record as of May 11, 2017. This is an increase of $0.02, or 66.7% compared to the dividend paid in the same quarter last year.

The core earnings components of Net Interest Income, Non Interest Income excluding securities gains, and Non Interest Expense each improved compared to the first quarter of 2016. The net interest margin increased from 3.09% to 3.21% and the average amount of interest earning assets increased $2.2 million. Even though the quarter was one day shorter this year, the net interest income increased $305,000, or 3.3% in the first quarter of 2017 compared to the first quarter of 2016. 

The provision for loan losses increased $100,000 compared to last year from a negative expense of $300,000 in the first quarter of 2016 to a negative expense of $200,000 recorded this quarter. Recoveries exceeded charge offs, classified assets decreased, and historical loss ratios improved, but the amount that the Allowance for Loan Losses could be reduced was impacted by the loan growth. Total Loans increased $10.5 million during the first quarter, and the Allowance for Loan and Lease Losses was reduced from $8.5 million, or 1.30% of loans at the end of 2016 to $8.3 million, or 1.26% as of the end of the first quarter of 2017.

Non-interest income, excluding gains and losses on securities transactions increased slightly from $3,794,000 to $3,810,000 in the first quarter of 2017 compared to the first quarter of 2016. Securities gains and losses decreased $310,000 and total non-interest income decreased $294,000 or 7.1%.

Total non-interest expenses decreased $421,000, or 4.4% in the first quarter of 2017 compared to the first quarter of 2016. Salaries and benefits decreased $184,000 or 3.3%, professional fees decreased $63,000, the FDIC deposit insurance assessment decreased $62,000 and all other non-interest expenses decreased $112,000.

Total assets of the company decreased $10.7 million, or 0.8% compared to December 31, 2016. Capital decreased $11.6 million during the quarter as the payment of the special and regular dividends exceeded the net income and the increase in the Accumulated Other Comprehensive Loss (AOCL) component of capital. The ratio of equity to assets decreased from 10.40% at the end of 2016 to 9.62% at the end of the first quarter of 2017. The Bank’s Tier 1 Leverage ratio decreased from 10.75% as of December 31, 2016 to 9.65% as of March 31, 2017.

H. Douglas Chaffin, President and CEO, commented, “We are off to a good start in 2017, with the loan growth, the improvement in the net interest margin, the reduction in classified assets, and the reduction in non-interest expenses. We plan to continue our focus on each of these items in 2017, as well as improving our non-interest income. Today’s dividend declaration represents a conservative 36% payout of our profits for the quarter, reflecting our efforts to actively manage our capital while we look for the right opportunities to grow throughout our existing branch network and strategic acquisitions.  We remain confident in our ability to maintain our position as the premier independent provider of financial services in the communities we serve, despite challenges in our current environment.”

Conference Call
MBT Financial Corp. will hold a conference call to discuss the First Quarter 2017 results on Friday, April 28, 2017, 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 #10104449. The replay will be available until May 28, 2017 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.  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
          2017       2016       2016       2016       2016  
(dollars in thousands except per share data)   1st Qtr   4th Qtr   3rd Qtr   2nd Qtr   1st Qtr
                         
EARNINGS                    
  Net interest income   $   9,595     $   9,574     $   9,515     $   9,244     $   9,290  
  FTE Net interest income   $   9,749     $   9,731     $   9,671     $   9,393     $   9,438  
  Provision for loan and lease losses   $   (200 )   $   (1,000 )   $   (700 )   $   (200 )   $   (300 )
  Non interest income   $   3,820     $   3,805     $   4,039     $   5,555     $   4,114  
  Non interest expense   $   9,062     $   9,269     $   8,974     $   8,872     $   9,483  
  Net income   $   3,180     $   3,578     $   3,687     $   4,239     $   2,997  
  Basic earnings per share   $   0.14     $   0.16     $   0.16     $   0.19     $   0.13  
  Diluted earnings per share   $   0.14     $   0.16     $   0.16     $   0.18     $   0.13  
  Average shares outstanding      22,821,273       22,738,718       22,733,134       22,884,350       22,854,556  
  Average diluted shares outstanding     22,961,425       22,905,786       22,915,278       23,049,718       23,014,957  
                         
PERFORMANCE RATIOS                    
  Return on average assets     0.97 %     1.07 %     1.10 %     1.28 %     0.91 %
  Return on average common equity     9.83 %     9.57 %     9.98 %     11.87 %     8.57 %
                         
  Base Margin     3.16 %     3.07 %     3.07 %     3.03 %     3.04 %
  FTE Adjustment     0.05 %     0.05 %     0.05 %     0.05 %     0.05 %
  Loan Fees     0.00 %     0.02 %     -0.01 %     0.02 %     0.00 %
  FTE Net Interest Margin     3.21 %     3.14 %     3.11 %     3.10 %     3.09 %
                         
  Efficiency ratio     66.43 %     68.18 %     65.59 %     67.83 %     69.75 %
  Full-time equivalent employees       287         277         281         288         288  
                         
CAPITAL                    
  Average equity to average assets     9.87 %     11.21 %     11.05 %     10.80 %     10.65 %
  Book value per share   $   5.67     $   6.20     $   6.49     $   6.41     $   6.22  
  Cash dividend per share   $   0.75     $   0.04     $   0.04     $   0.03     $   0.53  
                         
ASSET QUALITY                    
  Loan Charge-Offs   $   112     $   522     $   114     $   618     $   209  
  Loan Recoveries   $   188     $   575     $   316     $   184     $   150  
  Net Charge-Offs   $   (76 )   $   (53 )   $   (202 )   $   434     $   59  
                         
  Allowance for loan and lease losses   $   8,334     $   8,458     $   9,405     $   9,903     $   10,537  
                         
  Nonaccrual Loans   $   5,001     $   4,656     $   6,545     $   7,522     $   8,079  
  Loans 90 days past due   $   9     $   10     $   32     $   41     $   17  
  Restructured loans   $   10,318     $   14,161     $   15,923     $   16,701     $   17,828  
    Total non performing loans   $   15,328     $   18,827     $   22,500     $   24,264     $   25,924  
  Other real estate owned & other assets   $   1,400     $   1,634     $   1,696     $   1,818     $   1,608  
    Total non performing assets   $   16,728     $   20,461     $   24,196     $   26,082     $   27,532  
                         
  Classified Loans   $   14,030     $   14,971     $   20,151     $   24,365     $   26,768  
  Other real estate owned & other assets   $   1,400     $   1,634     $   1,696     $   1,818     $   1,608  
    Total classified assets   $   15,430     $   16,605     $   21,847     $   26,183     $   28,376  
                         
  Net loan charge-offs to average loans     -0.05 %     -0.03 %     -0.12 %     0.28 %     0.04 %
  Allowance for loan losses to total loans     1.26 %     1.30 %     1.43 %     1.55 %     1.70 %
  Non performing loans to gross loans     2.31 %     2.88 %     3.43 %     3.80 %     4.19 %
  Non performing assets to total assets     1.24 %     1.51 %     1.80 %     1.97 %     2.06 %
  Classified assets to total capital     11.16 %     10.95 %     14.61 %     17.70 %     19.65 %
  Allowance to non performing loans     54.37 %     44.92 %     41.80 %     40.81 %     40.65 %
                         
END OF PERIOD BALANCES                    
  Loans and leases   $   663,449     $   652,948     $   656,445     $   639,199     $   618,613  
  Total earning assets   $   1,232,350     $   1,239,439     $   1,232,863     $   1,214,557     $   1,227,990  
  Total assets   $   1,346,554     $   1,357,283     $   1,343,026     $   1,323,415     $   1,334,131  
  Deposits   $   1,203,072     $   1,199,717     $   1,180,461     $   1,163,418     $   1,162,733  
  Interest Bearing Liabilities   $   918,126     $   920,716     $   894,697     $   893,027     $   918,593  
  Shareholders’ equity   $   129,553     $   141,114     $   147,662     $   145,623     $   142,424  
  Tier 1 Capital (Bank)   $   129,935     $   143,123     $   140,131     $   138,059     $   133,870  
  Total Shares Outstanding       22,860,794         22,777,882         22,736,116         22,728,558         22,902,198  
                         
AVERAGE BALANCES                    
  Loans and leases   $   656,550     $   654,077     $   652,163     $   625,435     $   620,010  
  Total earning assets   $   1,229,947     $   1,230,134     $   1,234,255     $   1,218,569     $   1,227,703  
  Total assets   $   1,329,128     $   1,326,623     $   1,329,284     $   1,329,935     $   1,320,975  
  Deposits   $   1,194,296     $   1,174,024     $   1,178,941     $   1,173,998     $   1,164,320  
  Interest Bearing Liabilities   $   917,125     $   891,510     $   905,082     $   920,340     $   926,618  
  Shareholders’ equity   $   131,171     $   148,765     $   146,926     $   143,685     $   140,684  
                         

 

MBT FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF INCOME – UNAUDITED
               
        Quarter Ended March 31,  
Dollars in thousands (except per share data)   2017       2016    
Interest Income        
Interest and fees on loans $   7,364     $   7,035    
Interest on investment securities-        
  Tax-exempt     310         305    
  Taxable     2,268         2,526    
Interest on balances due from banks     109         117    
      Total interest income     10,051         9,983    
               
Interest Expense        
Interest on deposits     456         517    
Interest on borrowed funds     –          176    
      Total interest expense     456         693    
               
Net Interest Income     9,595         9,290    
Provision For Loan Losses     (200 )       (300 )  
               
Net Interest Income After        
Provision For Loan Losses     9,795         9,590    
               
Other Income        
Income from wealth management services     1,128         1,097    
Service charges and other fees     1,014         1,008    
Debit Card income     680         674    
Net gain on sales of securities     10         320    
Net gain (loss) on other real estate owned     (34 )       (56 )  
Origination fees on mortgage loans sold     59         130    
Bank Owned Life Insurance income     341         355    
Other       622         586    
      Total other income     3,820         4,114    
               
Other Expenses        
Salaries and employee benefits     5,434         5,618    
Occupancy expense     748         701    
Equipment expense     697         684    
Marketing expense     284         259    
Professional fees     589         652    
EFT/ATM expense     248         309    
Other real estate owned expense     32         64    
FDIC deposit insurance assessment     107         169    
Bonding and other insurance expense     122         122    
Telephone expense     116         126    
Other       685         779    
      Total other expenses     9,062         9,483    
               
Profit Before Income Taxes     4,553         4,221    
Income Tax Expense     1,373         1,224    
Net Profit $   3,180     $   2,997    
               
Basic Earnings Per Common Share $   0.14     $   0.13    
               
Diluted Earnings Per Common Share $   0.14     $   0.13    
               
Dividends Declared Per Common Share $   0.75     $   0.53    
               

 

MBT FINANCIAL CORP.
CONSOLIDATED BALANCE SHEETS
             
             
        (Unaudited)    
Dollars in thousands March 31, 2017   December 31, 2016
Assets        
Cash and Cash Equivalents      
  Cash and due from banks      
    Non-interest bearing $   16,277     $   18,183  
    Interest bearing     24,396         34,589  
    Total cash and cash equivalents     40,673         52,772  
             
Interest Bearing Time Deposits in Other Banks     18,696         18,946  
Securities – Held to Maturity     41,452         40,741  
Securities – Available for Sale     480,209         488,067  
Federal Home Loan Bank stock – at cost     4,148         4,148  
Loans held for sale     525         611  
             
Loans       662,924         652,337  
Allowance for Loan Losses     (8,334 )       (8,458 )
Loans – Net     654,590         643,879  
             
Accrued interest receivable and other assets     23,260         24,901  
Other Real Estate Owned     1,360         1,634  
Bank Owned Life Insurance     54,759         54,415  
Premises and Equipment – Net     26,882         27,169  
    Total assets $   1,346,554     $   1,357,283  
             
Liabilities      
Deposits:      
  Non-interest bearing $   284,946     $   279,001  
  Interest-bearing     918,126         920,716  
    Total deposits     1,203,072         1,199,717  
             
Accrued interest payable and other liabilities     13,929         16,452  
    Total liabilities     1,217,001         1,216,169  
             
Shareholders’ Equity      
Common stock (no par value)     22,385         22,562  
Retained Earnings     112,944         126,079  
Unearned Compensation     (60 )       (4 )
Accumulated other comprehensive income (loss)     (5,716 )       (7,523 )
    Total shareholders’ equity     129,553         141,114  
    Total liabilities and shareholders’ equity $   1,346,554     $   1,357,283  
                   

 

CONTACT: FOR FURTHER INFORMATION:

H. Douglas Chaffin	
Chief Executive Officer	
(734) 384-8123		
[email protected]

John L. Skibski		
Chief Financial Officer	
(734) 242-1879		
[email protected]	 

Julian J. Broggio
Director of Marketing
(734) 240-2341
[email protected]