Press Release

MBT Financial Corp. Announces Dividend and Preliminary Fourth Quarter 2018 Highlights

Company Release - 1/28/2019 5:00 PM ET

MONROE, Mich., Jan. 28, 2019 (GLOBE NEWSWIRE) -- MBT Financial Corp. (NASDAQ: MBTF), the parent company of Monroe Bank & Trust, announced that it will pay a quarterly dividend of $0.10 per common share on February 14, 2019 to shareholders of record as of February 7, 2019. This is an increase of $0.04 per share compared to the regular dividend paid in the same quarter last year.

On October 10, 2018, the Company announced that it signed a definitive agreement to merge with First Merchants Corporation (NASDAQ: FRME), headquartered in Muncie, Indiana. The merger is on track to close in the first quarter of 2019, so the Company will not be providing its typical detailed earnings announcement and investor conference call. 

The preliminary net profit was $3,878,000 ($0.17 per share, basic and diluted), in the fourth quarter of 2018, compared to a loss of $144,000 ($0.01 per share, basic), in the fourth quarter of 2017. The preliminary full year profit was $17,699,000 ($0.77 per share, basic and diluted), compared to $10,609,000 ($0.46 per share, basic and diluted) for 2017. Fourth quarter profits in 2018 were negatively affected by merger related costs and fourth quarter profits in 2017 were negatively affected by tax adjustments due to the Tax Cuts and Jobs Act.  Merger related expenses in the fourth quarter of 2018 accounted for $0.04 per share, basic and diluted. 

The Net Interest Income for the fourth quarter of 2018 increased $1,080,000, or 10.4%. The Company did not record a provision for loan losses this quarter, compared to a negative provision of $500,000 recorded in the fourth quarter of 2017. Non-interest income for the fourth quarter of 2018 decreased $344,000, or 9.4% compared to the fourth quarter of 2017 primarily due to income received from a Bank Owned Life Insurance claim in 2017, and non-interest expense increased $786,000, or 8.6% primarily due to the aforementioned merger related expenses.

Total assets of the company decreased $10.5 million, or 0.8%, compared to December 31, 2017, to $1.34 billion. Capital decreased $5.0 million during 2018 because the payment of the special and regular dividends exceeded the net income and because the AOCL increased due to an increase in the unrealized loss on Available For Sale investment securities. Total loans increased $73.8 million, or 10.6% in 2018 while total deposits decreased $15.3 million, or 1.3%. This improved the Loan to Deposit ratio from 58.0% a year ago to 65.0% at the end of 2018.

H. Douglas Chaffin, President and CEO, commented, “We are making good progress toward closing our previously announced merger with First Merchants Corporation headquartered in Muncie, Indiana. This merger will provide tremendous benefits to our customers, shareholders and communities, and we look forward to continuing the legacy of exceptional customer service, local responsiveness, and strong community engagement that has defined Monroe Bank and Trust for 160 years.”

About the Company:
MBT Financial Corp. (NASDAQ:MBTF), a bank holding company headquartered in Monroe, Michigan, is the parent company of Monroe Bank & Trust. Founded in 1858, Monroe Bank & Trust helps customers’ remarkable stories unfold through an uncommon, optimistic culture. As one of the largest community banks in Southeast Michigan, with over $1.3 billion in assets, this full-service bank offers a complete range of business and personal accounts, mobile and online banking, offices and ATMs across Monroe and Wayne Counties, credit and mortgage options, investment and retirement services and award-winning community outreach. The bank believes in its customers, helping them with everything from day-to-day needs to long-term goals, and is ranked fourth among all Michigan banks for total trust assets.  The bank believes in its communities, supporting over 300 organizations with sponsorships and also more than 8,000 employee volunteer hours through the Monroe Bank & Trust ENLIST Volunteerism program. The bank believes in the power of knowledge, helping thousands of students and adults thrive through the Monroe Bank & Trust Financial Education program.  Monroe Bank & Trust is proud to be a trusted partner to communities and clients, and an employer of choice.  We are Monroe Bank & Trust, and we believe in the story of you.

For more information about Monroe Bank & Trust, visit www.monroe.bank.
Or, contact:
Julian Broggio
SVP, Director of Marketing
(734) 240-2341
[email protected]


MBT FINANCIAL CORP. 
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED 
            
    Quarter Ended December 31, Year Ended December 31, 
Dollars in thousands (except per share data) 2018   2017   2018   2017  
Interest Income        
Interest and fees on loans$  9,492  $  8,132  $  35,609  $  31,300  
Interest on investment securities-        
 Tax-exempt   408     356     1,670     1,299  
 Taxable   2,084     2,200     8,501     8,707  
Interest on balances due from banks   138     102     514     494  
   Total interest income   12,122     10,790     46,294     41,800  
            
Interest Expense        
Interest on deposits   534     414     1,804     1,731  
Interest on borrowed funds   135     3     451     6  
   Total interest expense   669     417     2,255     1,737  
            
Net Interest Income   11,453     10,373     44,039     40,063  
Provision For (Recovery Of) Loan Losses   -      (500)    (100)    (700) 
            
Net Interest Income After        
Provision For (Recovery Of) Loan Losses   11,453     10,873     44,139     40,763  
            
Other Income        
Income from wealth management services   1,172     1,187     4,728     5,017  
Service charges and other fees   940     1,050     3,834     4,186  
Debit Card income   799     730     3,068     2,877  
Net gain on sales of securities   (622)    (773)    (815)    (546) 
Net gain (loss) on other real estate owned   7     67     543     (22) 
Origination fees on mortgage loans sold   108     68     414     329  
Bank Owned Life Insurance income   359     848     1,411     1,978  
Other    550     480     2,357     2,063  
   Total other income   3,313     3,657     15,540     15,882  
            
Other Expenses        
Salaries and employee benefits   5,630     5,380     22,344     21,400  
Occupancy expense   672     701     2,673     2,825  
Equipment expense   881     855     3,429     3,126  
Marketing expense   356     361     1,589     1,322  
Professional fees   1,149     560     2,885     2,339  
EFT/ATM expense   316     259     1,160     1,022  
Other real estate owned expense   39     22     100     117  
FDIC deposit insurance assessment   95     107     391     428  
Bonding and other insurance expense   131     119     529     486  
Telephone expense   91     83     324     385  
Other    541     668     2,611     2,685  
   Total other expenses   9,901     9,115     38,035     36,135  
            
Profit Before Income Taxes   4,865     5,415     21,644     20,510  
Income Tax Expense   987     5,559     3,945     9,901  
Net Profit$  3,878  $  (144) $  17,699  $  10,609  
            
Basic Earnings Per Common Share$  0.17  $  (0.01) $  0.77  $  0.46  
            
Diluted Earnings Per Common Share$  0.17  $  (0.01) $  0.77  $  0.46  
            
Dividends Declared Per Common Share$  0.10  $  0.06  $  0.93  $  0.92  
            

 

MBT FINANCIAL CORP.
CONSOLIDATED BALANCE SHEETS
       
       
    (Unaudited)  
Dollars in thousandsDecember 31, 2018 December 31, 2017
Assets    
Cash and Cash Equivalents   
 Cash and due from banks   
  Non-interest bearing$  17,058  $  18,233 
  Interest bearing   34,784     34,777 
  Total cash and cash equivalents   51,842     53,010 
       
Interest Bearing Time Deposits in Other Banks   10,796     15,196 
Securities - Held to Maturity   -      37,163 
Securities - Available for Sale   401,613     442,816 
Equity Securities   7,415     4,148 
Loans held for sale   488     346 
       
Loans    768,660     694,979 
Allowance for Loan Losses   (7,771)    (7,666)
Loans - Net   760,889     687,313 
       
Accrued interest receivable and other assets   16,743     20,463 
Other Real Estate Owned   692     1,412 
Bank Owned Life Insurance   59,563     58,153 
Premises and Equipment - Net   26,850     27,400 
  Total assets$  1,336,891  $  1,347,420 
       
Liabilities   
Deposits:   
 Non-interest bearing$  297,704  $  299,838 
 Interest-bearing   885,206     898,326 
  Total deposits   1,182,910     1,198,164 
       
Federal Home Loan Bank advances   10,000     -  
Accrued interest payable and other liabilities   16,314     16,598 
  Total liabilities   1,209,224     1,214,762 
       
Shareholders' Equity   
Common stock (no par value)   23,453     22,840 
Retained Earnings   113,921     117,524 
Unearned Compensation   -      -  
Accumulated other comprehensive loss   (9,707)    (7,706)
  Total shareholders' equity   127,667     132,658 
  Total liabilities and shareholders' equity$  1,336,891  $  1,347,420 

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Source: MBT Financial Corp.