MBTF MBT Financial Corporation

MBT Financial Corp. (NASDAQ: MBTF), the parent company of Monroe Bank & Trust, reported a preliminary second quarter 2019 profit of $6,337,000, or $0.27 per share (basic and diluted). This represents a 28.1% increase compared to the $4,945,000 ($0.22 per share, basic, and $0.21 per share, diluted) recorded in the second quarter of 2018.

The company also announced that it will pay a quarterly dividend of $0.11 per common share on August 15, 2019 to shareholders of record as of August 8, 2019. This is an increase of $0.01 per share compared to the regular dividend paid in the same quarter last year.

The Net Interest Income for the second quarter of 2019 increased $1,024,000, or 9.5% compared to the second quarter of 2018 as the Net Interest Margin improved from 3.65% to 3.87%. Non-interest income in the second quarter of 2019 included a gain of $517,000 from a Bank Owned Life Insurance claim. Excluding the BOLI claim in the second quarter of 2019 and gains on the sales of Other Real Estate Owned in the second quarter of 2018, non-interest income increased 1.4%, from $3,886,000 to $3,942,000. Non-interest expense decreased $645,000, or 7.0%, in part because we have begun to achieve some of the cost reductions expected due to our upcoming merger with First Merchants Bank. Excluding the BOLI claim, net income for the second quarter of 2019 was $5,820,000, or $0.25 per share, basic and diluted.

Total assets of the company decreased $10.3 million, or 0.8%, compared to December 31, 2018, to $1.327 billion. Capital increased $7.8 million during the first half of 2019, total loans increased $0.3 million, and total deposits decreased $11.9 million, or 1.0%. The loan pipeline remains strong at $77 million, and the amount of unfunded loan commitments increased from $131 million at the end of 2018 to $139 million at the end of the second quarter of 2019.

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. The merger was announced in October, 2018 and is expected to close during the third quarter 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 third quarter of 2019, so the Company will not be providing its typical detailed earnings announcement and investor conference call. First Merchants announced their second 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 Chaffin		John Skibski
President & CEO		Executive Vice President & CFO
(734) 384-8123		(734) 242-1879
doug.chaffin@monroe.bank		john.skibski@monroe.bank

       

MBT FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
				Quarter Ended June 30,							Six Months Ended June 30,
Dollars in thousands (except per share data)					2019			2018				2019				2018
Interest Income
Interest and fees on loans				$	9,714		$	8,736			$	19,285			$	16,953
Interest on investment securities-
	Tax-exempt				171			443				467				847
	Taxable				380			2,087				1,554				4,297
Interest on balances due from banks					2,213			58				3,422				183
			Total interest income		12,478			11,324				24,728				22,280
Interest Expense
Interest on deposits					557			400				1,125				814
Interest on borrowed funds					64			91				128				97
			Total interest expense		621			491				1,253				911
Net Interest Income					11,857			10,833				23,475				21,369
Provision For (Recovery Of) Loan Losses					-			-				-				(100	)
Net Interest Income After
Provision For (Recovery Of) Loan Losses					11,857			10,833				23,475				21,469
Other Income
Income from wealth management services					1,197			1,178				2,358				2,363
Service charges and other fees					855			955				1,677				1,901
Debit Card income					799			786				1,500				1,506
Net gain on sales of securities					-			(1	)			(11,646	)			(102	)
Net gain (loss) on other real estate owned					4			517				13				536
Origination fees on mortgage loans sold					119			92				188				154
Bank Owned Life Insurance income					851			349				1,189				702
Other					634			527				1,293				1,127
			Total other income		4,459			4,403				(3,428	)			8,187
Other Expenses
Salaries and employee benefits					5,305			5,371				11,369				11,333
Occupancy expense					654			620				1,383				1,341
Equipment expense					896			874				1,809				1,667
Marketing expense					189			467				481				844
Professional fees					459			592				1,302				1,186
EFT/ATM expense					297			288				588				547
Other real estate owned expense					4			21				26				36
FDIC deposit insurance assessment					91			92				180				199
Bonding and other insurance expense					73			137				502				269
Telephone expense					78			74				158				149
Other					495			650				1,053				1,407
			Total other expenses		8,541			9,186				18,851				18,978
Profit Before Income Taxes					7,775			6,050				1,196				10,678
Income Tax Expense					1,438			1,105				-				1,831
Net Profit				$	6,337		$	4,945			$	1,196			$	8,847
Basic Earnings Per Common Share				$	0.27		$	0.22			$	0.05			$	0.39
Diluted Earnings Per Common Share				$	0.27		$	0.21			$	0.05			$	0.38
Dividends Declared Per Common Share				$	0.10		$	0.07			$	0.20			$	0.73

 

MBT FINANCIAL CORP.
CONSOLIDATED BALANCE SHEETS
			(Unaudited)
Dollars in thousands			June 30, 2019				December 31, 2018
Assets
Cash and Cash Equivalents
	Cash and due from banks
		Non-interest bearing	$	16,934			$	17,058
		Interest bearing		321,684				34,784
		Total cash and cash equivalents		338,618				51,842
Interest Bearing Time Deposits in Other Banks				100				10,796
Securities - Available for Sale				116,440				401,613
Equity Securities				7,478				7,415
Loans held for sale				-				488
Loans				769,413				768,660
Allowance for Loan Losses				(7,623	)			(7,771	)
Loans - Net				761,790				760,889
Accrued interest receivable and other assets				15,445				16,743
Other Real Estate Owned				27				692
Bank Owned Life Insurance				59,313				59,563
Premises and Equipment - Net				27,336				26,850
		Total assets	$	1,326,547			$	1,336,891
Liabilities
Deposits:
	Non-interest bearing		$	309,309			$	297,704
	Interest-bearing			861,691				885,206
		Total deposits		1,171,000				1,182,910
Federal Home Loan Bank advances				10,000				10,000
Accrued interest payable and other liabilities				10,110				16,314
		Total liabilities		1,191,110				1,209,224
Shareholders' Equity
Common stock (no par value)				23,658				23,453
Retained Earnings				110,510				113,921
Accumulated other comprehensive loss				1,269				(9,707	)
		Total shareholders' equity		135,437				127,667
		Total liabilities and shareholders' equity	$	1,326,547			$	1,336,891