Press Release

MBT Financial Corp. Announces Dividend and Preliminary First Quarter 2019 Highlights

Company Release - 4/25/2019 5:00 PM ET

MONROE, Mich., April 25, 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 May 16, 2019 to shareholders of record as of May 9, 2019. This is an increase of $0.03 per share compared to the regular dividend paid in the same quarter last year.

Excluding securities losses and other merger related expenses, core earnings for the first quarter of 2019 were $4,319,000, or $0.19 per share, basic and diluted. This is an increase of 11% from the net profit of $3,902,000 recorded in the first quarter of 2018 ($0.17 per share, basic and diluted). During the first quarter of 2019, we liquidated a substantial portion of our investment portfolio in anticipation of our merger with First Merchants, which resulted in a loss from the sale of these securities in the amount of $11,646,000. This is consistent with the Accumulated Other Comprehensive Loss previously reflected on our balance sheet, and did not have a negative effect on capital. The preliminary net loss was $5,141,000 ($0.22 per share) in the first quarter of 2019.

The Net Interest Income for the first quarter of 2019 increased $1,082,000, or 10.3% compared to the first quarter of 2018 as the Net Interest Margin improved from 3.49% to 3.83%. The Company did not record a provision for loan losses this quarter, compared to a negative provision of $100,000 recorded in the first quarter of 2018. Excluding securities losses, non-interest income for the first quarter of 2019 was $3,759,000, a decrease of $126,000, or 3.2% compared to the first quarter of 2018 primarily due to lower service charges and other fees on deposit accounts. Non-interest expense increased $518,000, or 5.3% primarily due to the aforementioned merger related expenses.

Total assets of the company decreased $3.4 million, or 0.3%, compared to December 31, 2018, to $1.333 billion. Capital increased $2.6 million during the first quarter of 2019 because the securities losses realized in the first quarter were already included in Accumulated Other Comprehensive Income (Loss). Total loans decreased $1.8 million, or 0.2% in the first quarter of 2019 while total deposits increased $239,000, or less than 0.1%. The decrease in loan balances was the result of payment activity on mortgage loans and purchased consumer loans as well as scheduled principal payments on commercial participation loans. The loan pipeline remains strong at $70 million, and the amount of unfunded loan commitments increased significantly during the first quarter, from $131 million to $142 million.

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, which is expected to take place during the first half of 2019. 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.

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 expected to close in the first half of 2019, so the Company will not be providing its typical detailed earnings announcement and investor conference call. First Merchants announced their first quarter results and hosted a conference call earlier today. For information about First Merchants and the merger, and to access a replay of their call, please see the Investor Relations link on www.firstmerchants.com.

For more information about Monroe Bank & Trust, visit www.monroe.bank or contact:

Doug ChaffinJohn Skibski
President & CEOExecutive Vice President & CFO
(734) 384-8123(734) 242-1879
doug.chaffin@monroe.bankjohn.skibski@monroe.bank
  


 
MBT FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
       
    Quarter Ended March 31,
Dollars in thousands (except per share data)2019
 2018
Interest Income   
Interest and fees on loans$9,571  $8,217 
Interest on investment securities-   
 Tax-exempt 296   404 
 Taxable 1,174   2,210 
Interest on balances due from banks 1,209   125 
   Total interest income 12,250   10,956 
       
Interest Expense   
Interest on deposits 568   414 
Interest on borrowed funds 64   6 
   Total interest expense 632   420 
       
Net Interest Income 11,618   10,536 
Provision For (Recovery Of) Loan Losses -   (100)
       
Net Interest Income After   
Provision For (Recovery Of) Loan Losses 11,618   10,636 
       
Other Income   
Income from wealth management services 1,161   1,185 
Service charges and other fees 822   946 
Debit Card income 701   720 
Net gain on sales of securities (11,646)  (101)
Net gain (loss) on other real estate owned 9   19 
Origination fees on mortgage loans sold 69   62 
Bank Owned Life Insurance income 338   353 
Other
 659   600 
   Total other income (7,887)  3,784 
       
Other Expenses   
Salaries and employee benefits 6,064   5,962 
Occupancy expense 729   721 
Equipment expense 913   793 
Marketing expense 292   377 
Professional fees 843   594 
EFT/ATM expense 291   259 
Other real estate owned expense 22   15 
FDIC deposit insurance assessment 89   107 
Bonding and other insurance expense 429   132 
Telephone expense 80   75 
Other
 558   757 
   Total other expenses 10,310   9,792 
       
Profit (Loss) Before Income Taxes (6,579)  4,628 
Income Tax Expense (Benefit) (1,438)  726 
Net Profit (Loss)$(5,141) $3,902 
       
Basic Earnings (Loss) Per Common Share$(0.22) $0.17 
       
Diluted Earnings (Loss) Per Common Share$(0.22) $0.17 
       
Dividends Declared Per Common Share$0.10  $0.66 
       

 

 
MBT FINANCIAL CORP.
CONSOLIDATED BALANCE SHEETS
      
      
   (Unaudited)  
Dollars in thousandsMarch 31, 2019 December 31, 2018
Assets   
Cash and Cash Equivalents   
 Cash and due from banks   
  Non-interest bearing$18,426  $17,058 
  Interest bearing 414,381   34,784 
  Total cash and cash equivalents 432,807   51,842 
      
Interest Bearing Time Deposits in Other Banks 600   10,796 
Securities - Available for Sale 30,133   401,613 
Equity Securities 7,450   7,415 
Loans held for sale -   488 
      
Loans 766,877   768,660 
Allowance for Loan Losses (7,503)  (7,771)
Loans - Net 759,374   760,889 
      
Accrued interest receivable and other assets 16,662   16,743 
Other Real Estate Owned 58   692 
Bank Owned Life Insurance 59,901   59,563 
Premises and Equipment - Net 26,480   26,850 
  Total assets$1,333,465  $1,336,891 
      
Liabilities   
Deposits:   
 Non-interest bearing$290,929  $297,704 
 Interest-bearing 892,220   885,206 
  Total deposits 1,183,149   1,182,910 
      
Federal Home Loan Bank advances 10,000   10,000 
Accrued interest payable and other liabilities 10,028   16,314 
  Total liabilities 1,203,177   1,209,224 
      
Shareholders' Equity   
Common stock (no par value) 23,565   23,453 
Retained Earnings 106,477   113,921 
Accumulated other comprehensive income (loss) 246   (9,707)
  Total shareholders' equity 130,288   127,667 
  Total liabilities and shareholders' equity$1,333,465  $1,336,891 
          

 

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Source: MBT Financial Corp.