MBTF MBT Financial Corporation

MBT Financial Corp. (NASDAQ: MBTF), the parent company of Monroe Bank & Trust, reported a preliminary net profit of $4,974,000 ($0.21 per share, basic and diluted), in the third quarter of 2018, compared to a profit of $3,933,000 ($0.17 per share, basic and diluted), in the third quarter of 2017. The profit for the first nine months of 2018 was $13,821,000 ($0.60 per share, basic and diluted), compared to $10,753,000 ($0.47 per share, basic and diluted) for the first nine months of 2017. The company also announced that it will pay a quarterly dividend of $0.10 per common share on November 15, 2018 to shareholders of record as of November 8, 2018. This is an increase of $0.04 per share compared to the dividend paid in the same quarter last year.

The Net Interest Income for the third quarter of 2018 increased $986,000, or 9.6% as the net interest margin improved from 3.38% in the third quarter of 2017 to 3.62% in the third quarter of 2018. Higher interest rates and the continued shifting of assets from investment securities to loans improved the yield on earning assets while the cost of interest bearing liabilities remained low.

The Company did not record a provision for loan losses this quarter or in the third quarter of 2017. Asset quality continues to be strong, and recoveries of previously charged off loans exceeded charge offs during the third quarter of 2018. This provided sufficient growth in the Allowance for Loan Losses to maintain its adequacy even though the amount of loans increased. Total Loans increased $11.8 million, or 1.6% during the third quarter of 2018, and $57.6 million, or 8.3% so far this year. The Allowance for Loan and Lease Losses increased from $7.7 million at the end of 2017 to $8.0 million at the end of the third quarter of 2018. Due to the loan growth, the Allowance as a percent of loans decreased since the beginning of the year from 1.10% to 1.06%.

Non-interest income for the third quarter of 2018 increased $5,000, or 0.1% compared to the third quarter of 2017. Excluding gains and losses on securities and other real estate transactions in both periods, the non-interest income increased $253,000, or 6.5%. Non-interest expense increased $206,000, or 2.3%, mainly due to increases in salaries and benefits, equipment, and EFT/ATM expenses.

Total assets of the company decreased $8.3 million, or 0.6%, compared to December 31, 2017, to $1.34 billion. Capital decreased $11.3 million during the first nine months of 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. The ratio of equity to assets decreased from 9.85% at the end of 2017 to 9.06% at the end of the third quarter of 2018. The Bank’s Tier 1 Leverage ratio decreased from 10.33% as of December 31, 2017 to 9.86% as of September 30, 2018.

H. Douglas Chaffin, President and CEO, commented, “We are pleased with our results for this quarter, as our loan growth reflected our service to our customers in Southeast Michigan and Northwest Ohio, and our earnings improvement provides value to our shareholders. On October 10, 2018, we announced that we signed a definitive agreement to merge with First Merchants Corporation (NASDAQ: FRME), 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.”

Conference CallMBT Financial Corp. will hold a conference call to discuss the Third Quarter 2018 results on Friday, October 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.monroe.bank. 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 #10124598. The replay is available to callers from Canada at (855) 669-9658 and international callers at (412) 317-0088. The replay will be available until November 26, 2018 at 9:00 a.m. Eastern. The webcast will be archived on the Company’s web site.

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 julian.broggio@monroe.bank

MBT FINANCIAL CORP.
CONSOLIDATED FINANCIAL HIGHLIGHTS - UNAUDITED
	Quarterly																				Year to Date
	2018				2018				2018				2017				2017
(dollars in thousands except per share data)	3rd Qtr				2nd Qtr				1st Qtr				4th Qtr				3rd Qtr				2018				2017
EARNINGS
Net interest income	$	11,217			$	10,833			$	10,536			$	10,373			$	10,231			$	32,586			$	29,690
FTE Net interest income	$	11,321			$	10,945			$	10,638			$	10,552			$	10,394			$	32,904			$	30,160
Provision for loan and lease losses	$	-			$	-			$	(100	)		$	(500	)		$	-			$	(100	)		$	(200	)
Non interest income	$	4,040			$	4,403			$	3,784			$	3,657			$	4,035			$	12,227			$	12,225
Non interest expense	$	9,156			$	9,186			$	9,792			$	9,115			$	8,950			$	28,134			$	27,020
Net income	$	4,974			$	4,945			$	3,902			$	(144	)		$	3,933			$	13,821			$	10,753
Basic earnings per share	$	0.21			$	0.22			$	0.17			$	(0.01	)		$	0.17			$	0.60			$	0.47
Diluted earnings per share	$	0.21			$	0.21			$	0.17			$	(0.01	)		$	0.17			$	0.60			$	0.47
Average shares outstanding	22,985,176				22,978,225				22,943,736				22,884,010				22,871,451				22,969,182				22,852,935
Average diluted shares outstanding	23,114,431				23,101,035				23,063,200				23,044,241				23,040,960				23,092,771				23,034,533
PERFORMANCE RATIOS
Return on average assets	1.47		%		1.52		%		1.19		%		-0.04%				1.18		%		1.39		%		1.09		%
Return on average common equity	16.22		%		16.63		%		12.80		%		-0.42%				11.54		%		15.21		%		10.85		%
Base Margin	3.60		%		3.57		%		3.48		%		3.37		%		3.30		%		3.55		%		3.24		%
FTE Adjustment	0.03		%		0.04		%		0.03		%		0.06		%		0.05		%		0.03		%		0.05		%
Loan Fees	-0.01		%		0.03		%		0.01		%		0.00		%		0.03		%		0.01		%		0.01		%
FTE Net Interest Margin	3.62		%		3.64		%		3.52		%		3.43		%		3.38		%		3.59		%		3.30		%
Efficiency ratio	59.09		%		61.79		%		67.41		%		62.80		%		62.52		%		62.68		%		64.33		%
Full-time equivalent employees	289				280				281				288				295				283				290
CAPITAL
Average equity to average assets	9.07		%		9.11		%		9.31		%		10.34		%		10.21		%		9.16		%		10.01		%
Book value per share	$	5.28			$	5.24			$	5.11			$	5.79			$	5.94			$	5.28			$	5.94
Cash dividend per share	$	0.10			$	0.07			$	0.66			$	0.06			$	0.06			$	0.83			$	0.86
ASSET QUALITY
Loan Charge-Offs	$	97			$	51			$	12			$	14			$	306			$	160			$	814
Loan Recoveries	$	125			$	124			$	331			$	170			$	179			$	580			$	566
Net Charge-Offs	$	(28	)		$	(73	)		$	(319	)		$	(156	)		$	127			$	(420	)		$	248
Allowance for loan and lease losses	$	7,986			$	7,958			$	7,885			$	7,666			$	8,010			$	7,986			$	8,010
Nonaccrual Loans	$	4,494			$	3,360			$	3,453			$	3,658			$	3,050			$	4,494			$	3,050
Loans 90 days past due	$	5			$	-			$	-			$	3			$	5			$	5			$	5
Restructured loans	$	6,854			$	8,211			$	8,290			$	9,625			$	9,859			$	6,854			$	9,859
Total non performing loans	$	11,353			$	11,571			$	11,743			$	13,286			$	12,914			$	11,353			$	12,914
Other real estate owned & other assets	$	1,445			$	394			$	1,229			$	1,452			$	1,686			$	1,445			$	1,686
Total non performing assets	$	12,798			$	11,965			$	12,972			$	14,738			$	14,600			$	12,798			$	14,600
Classified Loans	$	10,458			$	9,604			$	8,866			$	8,273			$	9,206			$	10,458			$	9,206
Other real estate owned & other assets	$	1,445			$	394			$	1,229			$	1,452			$	1,686			$	1,445			$	1,686
Total classified assets	$	11,903			$	9,998			$	10,095			$	9,725			$	10,892			$	11,903			$	10,892
Net loan charge-offs to average loans	-0.01		%		-0.04		%		-0.18		%		-0.09		%		0.07		%		-0.08		%		0.05		%
Allowance for loan losses to total loans	1.06		%		1.07		%		1.09		%		1.10		%		1.15		%		1.06		%		1.15		%
Non performing loans to gross loans	1.51		%		1.56		%		1.63		%		1.91		%		1.86		%		1.51		%		1.86		%
Non performing assets to total assets	0.96		%		0.91		%		0.98		%		1.09		%		1.08		%		0.96		%		1.08		%
Classified assets to total capital	8.36		%		7.17		%		7.44		%		6.64		%		7.59		%		8.36		%		7.59		%
Allowance to non performing loans	70.34		%		68.78		%		67.15		%		57.70		%		62.03		%		70.34		%		62.03		%
END OF PERIOD BALANCES
Loans and leases	$	752,895			$	741,120			$	722,640			$	695,325			$	693,866			$	752,895			$	693,866
Total earning assets	$	1,223,623			$	1,208,138			$	1,214,209			$	1,229,425			$	1,220,844			$	1,223,623			$	1,220,844
Total assets	$	1,339,122			$	1,321,885			$	1,326,056			$	1,347,420			$	1,347,352			$	1,339,122			$	1,347,352
Deposits	$	1,166,276			$	1,147,494			$	1,193,363			$	1,198,164			$	1,195,335			$	1,166,276			$	1,195,335
Interest Bearing Liabilities	$	909,545			$	892,760			$	900,120			$	898,326			$	897,408			$	909,545			$	897,408
Shareholders' equity	$	121,351			$	120,354			$	117,502			$	132,658			$	135,969			$	121,351			$	135,969
Tier 1 Capital (Bank)	$	134,354			$	131,441			$	127,783			$	138,819			$	135,470			$	134,354			$	135,470
Total Shares Outstanding	22,990,208				22,983,255				22,973,261				22,907,844				22,875,505				22,990,208				22,875,505
AVERAGE BALANCES
Loans and leases	$	750,909			$	726,746			$	705,874			$	693,586			$	686,259			$	728,010			$	671,995
Total earning assets	$	1,238,252			$	1,207,102			$	1,224,359			$	1,220,426			$	1,220,620			$	1,223,291			$	1,221,946
Total assets	$	1,341,473			$	1,308,543			$	1,327,708			$	1,324,847			$	1,324,723			$	1,325,958			$	1,323,295
Deposits	$	1,176,264			$	1,166,187			$	1,192,570			$	1,184,592			$	1,187,768			$	1,178,281			$	1,188,546
Interest Bearing Liabilities	$	908,079			$	892,433			$	898,089			$	884,979			$	895,376			$	899,570			$	905,615
Shareholders' equity	$	121,690			$	119,260			$	123,636			$	136,963			$	135,188			$	121,522			$	132,473

 

MBT FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
	Quarter Ended September 30,							Nine Months Ended September 30,
Dollars in thousands (except per share data)	2018				2017			2018				2017
Interest Income
Interest and fees on loans	$	9,164			$	8,095		$	26,117			$	23,168
Interest on investment securities-
Tax-exempt	415				327			1,262				943
Taxable	2,120				2,054			6,417				6,507
Interest on balances due from banks	193				182			376				392
Total interest income	11,892				10,658			34,172				31,010
Interest Expense
Interest on deposits	456				427			1,270				1,317
Interest on borrowed funds	219				-			316				3
Total interest expense	675				427			1,586				1,320
Net Interest Income	11,217				10,231			32,586				29,690
Provision For (Recovery Of) Loan Losses	-				-			(100		)		(200		)
Net Interest Income After
Provision For (Recovery Of) Loan Losses	11,217				10,231			32,686				29,890
Other Income
Income from wealth management services	1,193				1,155			3,556				3,830
Service charges and other fees	993				1,076			2,894				3,136
Debit Card income	763				719			2,269				2,147
Net gain on sales of securities	(91		)		150			(193		)		227
Net gain (loss) on other real estate owned	-				7			536				(89		)
Origination fees on mortgage loans sold	152				87			306				261
Bank Owned Life Insurance income	350				377			1,052				1,130
Other	680				464			1,807				1,583
Total other income	4,040				4,035			12,227				12,225
Other Expenses
Salaries and employee benefits	5,381				5,313			16,714				16,020
Occupancy expense	660				694			2,001				2,124
Equipment expense	881				783			2,548				2,271
Marketing expense	389				375			1,233				961
Professional fees	550				570			1,736				1,779
EFT/ATM expense	297				256			844				763
Other real estate owned expense	25				33			61				95
FDIC deposit insurance assessment	97				107			296				321
Bonding and other insurance expense	129				120			398				367
Telephone expense	84				83			233				302
Other	663				616			2,070				2,017
Total other expenses	9,156				8,950			28,134				27,020
Profit Before Income Taxes	6,101				5,316			16,779				15,095
Income Tax Expense	1,127				1,383			2,958				4,342
Net Profit	$	4,974			$	3,933		$	13,821			$	10,753
Basic Earnings Per Common Share	$	0.21			$	0.17		$	0.60			$	0.47
Diluted Earnings Per Common Share	$	0.21			$	0.17		$	0.60			$	0.47
Dividends Declared Per Common Share	$	0.10			$	0.06		$	0.83			$	0.86

 

MBT FINANCIAL CORP.
CONSOLIDATED BALANCE SHEETS
				(Unaudited)
Dollars in thousands				September 30, 2018			December 31, 2017
Assets
Cash and Cash Equivalents
Cash and due from banks
Non-interest bearing				$	17,436		$	18,233
Interest bearing				20,548			34,777
Total cash and cash equivalents				37,984			53,010
Interest Bearing Time Deposits in Other Banks				11,946			15,196
Securities - Held to Maturity				31,073			37,163
Securities - Available for Sale				399,758			442,816
Equity Securities				7,403			4,148
Loans held for sale				183			346
Loans				752,712			694,979
Allowance for Loan Losses				(7,986		)	(7,666		)
Loans - Net				744,726			687,313
Accrued interest receivable and other assets				19,187			20,463
Other Real Estate Owned				997			1,412
Bank Owned Life Insurance				59,205			58,153
Premises and Equipment - Net				26,660			27,400
Total assets				$	1,339,122		$	1,347,420
Liabilities
Deposits:
Non-interest bearing				$	291,731		$	299,838
Interest-bearing				874,545			898,326
Total deposits				1,166,276			1,198,164
Federal Home Loan Bank advances				35,000			-
Accrued interest payable and other liabilities				16,495			16,598
Total liabilities				1,217,771			1,214,762
Shareholders' Equity
Common stock (no par value)				23,403			22,840
Retained Earnings				112,343			117,524
Unearned Compensation				(19		)	-
Accumulated other comprehensive loss				(14,376		)	(7,706		)
Total shareholders' equity				121,351			132,658
Total liabilities and shareholders' equity				$	1,339,122		$	1,347,420