MONROE, Mich., July 27, 2010 (GLOBE NEWSWIRE) -- MBT Financial Corp. (Nasdaq:MBTF), the parent company of Monroe Bank & Trust, reported a net loss of $372,000, or $0.02 per share, in the second quarter of 2010, compared to the loss of $5.4 million, or $0.33 per share in the second quarter of 2009. The decrease in the loss was mainly due to the decrease in the provision for loan losses from $8.0 million in the second quarter of 2009 to $3.75 million in the second quarter of 2010. After a profitable first quarter of 2010, the Company reported a year to date net loss of $24,000, or $0.00 per share, compared to the loss of $6.7 million, or $0.42 per share for the first six months of 2009.

The Net Interest Income for the second quarter of 2010 was $9.2 million, a decrease of $1.0 million, or 9.8% compared to the same period in 2009. The net interest income decreased because the average earning assets decreased $141 million, or 10.5%. This included a decrease of $102 million, or 11.1% in average loans, as weak economic conditions, coupled with ongoing stringent underwriting standards, continue to have a negative impact on loan demand and growth.

Non interest income, excluding securities gains, increased from $3.6 million in the second quarter of 2009 to $4.0 million in the second quarter of 2010. This was due to improvements in all revenue sources except service charges on deposit accounts, which decreased due to lower overdraft fees. Total non interest expenses decreased $2.0 million, or 13.4%. The bank's efforts to control expenses resulted in a significant reduction in salaries and benefits. Also, losses on Other Real Estate Owned decreased sharply and FDIC insurance costs decreased due to a special assessment in the second quarter of 2009.

Total assets of the company decreased $177.9 million compared to June 30, 2009, mainly due to the previously mentioned decrease in loan demand and the repayment of $135.0 million of funds borrowed from the Federal Home Loan Bank. Non interest bearing demand deposits increased by 13.0% over the 12 month period, as the market continues to demonstrate the value of our customer focused community bank model. Total assets decreased by $119.7 million since the end of 2009 due to the repayment of $115.0 million of borrowed funds in the second quarter of 2010. Due to the small loss year to date and the decrease in the unrealized loss on investment securities available for sale, capital increased $4.4 million so far this year, and the ratio of equity to assets, a key indicator of bank strength and safety, increased from 5.91% at December 31, 2009 to 6.82% at June 30, 2010. In addition, the company's liquidity position remains good, with cash and investments totaling 27.0% of assets, down slightly from 29.9% at the end of 2009.

H. Douglas Chaffin, President and CEO, commented, "The national economy is recovering slowly, and the conditions in southeast Michigan remain weak, but stable. Local unemployment rates remain high and property values remain low. However, stability in each of these indicators that began in the second half of 2009 continued through the second quarter of 2010. Our total problem assets decreased $3.2 million, or 2.0% during the quarter. Also in the second quarter of this year, our total loans decreased $15.7 million, causing our Allowance for Loan Losses as a percent of loans to increase from 2.93% to 2.97%."

Mr. Chaffin concluded, "Although real estate values and unemployment rates in our market have been stable for the fourth consecutive quarter, we do not anticipate significant recovery in our local markets this year. We will continue to focus our efforts on improving asset quality, maintaining liquidity, strengthening capital, seeking new sources of revenue, and controlling expenses. Our Board is continuing to pursue options available to us to raise additional capital. While we are pleased with the improvement over last year's results, we still have much work ahead of us given our current environment."

Conference Call

MBT Financial Corp. will hold a conference call to discuss second quarter results on Wednesday, July 28, 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 by calling (877) 317-6789. The event 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 single 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 community banks in Southeast Michigan. MBT is a full-service bank, offering a complete range of business and personal accounts, credit options, and phone and online banking services. MBT's Wealth Management Group is one of the largest and most respected in Southeastern Michigan. With 25 offices, 41 ATMs, and a comprehensive array of products and services, MBT prides itself in offering an incomparable banking experience for its customers. Visit MBT's web site at www.mbandt.com.

The MBT Financial Corp. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4214

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 Year to Date
  2010 2010 2009 2009 2009    
(dollars in thousands except per share data) 2nd Qtr 1st Qtr 4th Qtr 3rd Qtr 2nd Qtr 2010 2009
               
EARNINGS              
Net interest income  $ 9,188  $ 9,405  $ 10,101  $ 10,516  $ 10,185  $ 18,593  $ 20,398
FTE Net interest income  $ 9,389  $ 9,677  $ 10,417  $ 10,857  $ 10,536  $ 19,066  $ 21,101
Provision for loan and lease losses  $ 3,750  $ 2,200  $ 17,000  $ 6,800  $ 8,000  $ 5,950  $ 12,200
Non-interest income  $ 6,819  $ 4,041  $ (40)  $ 3,559  $ 3,630  $ 10,860  $ 6,961
Non-interest expense  $ 12,629  $ 10,898  $ 11,798  $ 11,390  $ 14,589  $ 23,527  $ 26,586
Net income (loss)  $ (372)  $ 348  $ (25,112)  $ (2,325)  $ (5,373)  $ (24)  $ (6,740)
Basic earnings (loss) per share  $ (0.02)  $ 0.02  $ (1.56)  $ (0.14)  $ (0.33)  $ --   $ (0.42)
Diluted earnings (loss) per share  $ (0.02)  $ 0.02  $ (1.56)  $ (0.14)  $ (0.33)  $ --   $ (0.42)
Average shares outstanding  16,225,327 16,216,177 16,204,139 16,192,914 16,182,528 16,220,777 16,174,231
Average diluted shares outstanding 16,230,058 16,216,708 16,204,139 16,192,914 16,193,278 16,223,911 16,184,981
               
PERFORMANCE RATIOS              
Return on average assets -0.11% 0.10% -7.17% -0.64% -1.48% 0.00% -0.92%
Return on average common equity -1.77% 1.71% -90.17% -8.20% -18.31% -0.06% -11.33%
               
Base Margin 3.03% 3.01% 3.08% 3.08% 3.00% 3.02% 2.94%
FTE Adjustment 0.07% 0.09% 0.10% 0.10% 0.10% 0.08% 0.10%
Loan Fees 0.03% 0.03% 0.04% 0.06% 0.04% 0.03% 0.05%
FTE Net Interest Margin 3.13% 3.13% 3.22% 3.24% 3.14% 3.13% 3.09%
               
Efficiency ratio 63.84% 67.75% 61.93% 61.90% 70.22% 65.79% 69.96%
Full-time equivalent employees  356  351  362  361  370  354  378
               
CAPITAL              
Average equity to average assets 6.44% 6.08% 7.95% 7.84% 8.10% 6.26% 8.09%
Book value per share  $ 5.31  $ 5.17  $ 5.04  $ 6.77  $ 6.80  $ 5.31  $ 6.80
Cash dividend per share  $ --   $ --   $ --   $ --   $ 0.01  $ --   $ 0.02
               
ASSET QUALITY              
Loan Charge-Offs  $ 3,967  $ 2,362  $ 11,721  $ 12,364  $ 6,334  $ 6,329  $ 7,909
Loan Recoveries  $ 131  $ 211  $ 211  $ 262  $ 456  $ 342  $ 1,056
Net Charge-Offs  $ 3,836  $ 2,151  $ 11,510  $ 12,102  $ 5,878  $ 5,987  $ 6,853
               
Allowance for loan and lease losses  $ 24,026  $ 24,112  $ 24,063  $ 18,573  $ 23,875  $ 24,026  $ 23,875
               
Nonaccrual Loans  $ 65,066  $ 61,722  $ 56,992  $ 62,038  $ 61,917  $ 65,066  $ 61,917
Loans 90 days past due  $ 166  $ 53  $ 20  $ 192  $ 300  $ 166  $ 300
Restructured loans  $ 25,058  $ 28,042  $ 29,102  $ 14,359  $ 7,552  $ 25,058  $ 7,552
Total non performing loans  $ 90,290  $ 89,817  $ 86,114  $ 76,589  $ 69,769  $ 90,290  $ 69,769
Other real estate owned & other assets  $ 18,387  $ 19,634  $ 18,832  $ 20,737  $ 18,270  $ 18,387  $ 18,270
Nonaccrual Investment Securities  $ 4,740  $ 4,740  $ 4,740  $ --   $ 945  $ 4,740  $ 945
Total non performing assets  $ 113,417  $ 114,191  $ 109,686  $ 97,326  $ 88,984  $ 113,417  $ 88,984
Problem Loans Still Performing  $ 41,693  $ 44,105  $ 46,278  $ 48,366  $ 59,076  $ 41,693  $ 59,076
Total Problem Assets  $ 155,110  $ 158,296  $ 155,964  $ 145,692  $ 148,060  $ 155,110  $ 148,060
               
Net loan charge-offs to average loans 1.88% 1.04% 5.25% 5.34% 2.57% 1.46% 1.49%
Allowance for losses to total loans 2.97% 2.93% 2.83% 2.11% 2.62% 2.97% 2.62%
Non performing loans to gross loans 11.18% 10.91% 10.13% 8.71% 7.66% 11.18% 7.66%
Non performing assets to total assets 8.98% 8.27% 7.93% 6.75% 6.17% 8.98% 6.17%
Allowance to non performing loans 26.61% 26.85% 27.94% 24.25% 34.22% 26.61% 34.22%
               
END OF PERIOD BALANCES              
Loans and leases  $ 807,788  $ 823,515  $ 849,910  $ 879,513  $ 910,356  $ 807,788  $ 910,356
Total earning assets  $ 1,144,120  $ 1,260,637  $ 1,258,073  $ 1,315,930  $ 1,321,006  $ 1,144,120  $ 1,321,006
Total assets  $ 1,263,678  $ 1,381,616  $ 1,383,369  $ 1,442,512  $ 1,441,582  $ 1,263,678  $ 1,441,582
Deposits  $ 1,023,657  $ 1,028,921  $ 1,031,791  $ 1,047,649  $ 1,039,479  $ 1,023,657  $ 1,039,479
Interest Bearing Liabilities  $ 1,022,293  $ 1,149,728  $ 1,155,253  $ 1,199,403  $ 1,189,725  $ 1,022,293  $ 1,189,725
Shareholders' equity  $ 86,201  $ 83,913  $ 81,764  $ 109,597  $ 110,010  $ 86,201  $ 110,010
Total Shares Outstanding  16,228,029  16,222,177  16,210,110  16,198,785  16,187,277  16,228,029  16,187,277
               
AVERAGE BALANCES              
Loans and leases  $ 816,487  $ 836,122  $ 869,130  $ 899,795  $ 918,513  $ 826,252  $ 926,596
Total earning assets  $ 1,205,711  $ 1,253,567  $ 1,283,459  $ 1,331,381  $ 1,346,749  $ 1,229,509  $ 1,375,868
Total assets  $ 1,311,835  $ 1,361,507  $ 1,390,421  $ 1,434,971  $ 1,452,339  $ 1,336,533  $ 1,482,657
Deposits  $ 1,017,761  $ 1,024,651  $ 1,024,353  $ 1,051,967  $ 1,054,447  $ 1,021,187  $ 1,077,587
Interest Bearing Liabilities  $ 1,093,471  $ 1,149,938  $ 1,158,525  $ 1,202,082  $ 1,212,880  $ 1,121,549  $ 1,235,336
Shareholders' equity  $ 84,486  $ 82,775  $ 110,488  $ 112,533  $ 117,677  $ 83,635  $ 120,010
 
MBT FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF INCOME -- UNAUDITED
         
  Quarter Ended June 30, Six Months Ended June 30,
Dollars in thousands (except per share data) 2010 2009 2010 2009
Interest Income        
Interest and fees on loans  $ 11,642  $ 13,165  $ 23,591  $ 26,765
Interest on investment securities --        
Tax-exempt  476  865  1,114  1,742
Taxable  2,353  3,828  5,042  8,328
Interest on balances due from banks  28  12  66  27
Total interest income  14,499  17,870  29,813  36,862
         
Interest Expense        
Interest on deposits  3,336  4,582  6,689  10,106
Interest on borrowed funds  1,975  3,103  4,531  6,358
Total interest expense  5,311  7,685  11,220  16,464
         
Net Interest Income  9,188  10,185  18,593  20,398
Provision For Loan Losses  3,750  8,000  5,950  12,200
         
Net Interest Income After Provision For Loan Losses  5,438  2,185  12,643  8,198
         
Other Income        
Income from wealth management services  1,141  906  2,103  1,820
Service charges and other fees  1,301  1,432  2,572  2,788
Net gain on sales of securities  2,791  50  3,086  656
         
Other Than Temporary Impairment on securities  --   --   --   (6,400)
Portion of OTTI loss recognized in other comprehensive income (before taxes)  --   --   --   5,631
 Net impairment losses  --   --   --   (769)
         
Origination fees on mortgage loans sold  137  122  269  231
Bank Owned Life Insurance income  450  296  839  665
Other  999  824  1,991  1,570
Total other income  6,819  3,630  10,860  6,961
         
Other Expenses        
Salaries and employee benefits  4,652  5,400  9,721  10,834
Occupancy expense  703  727  1,508  1,641
Equipment expense  797  771  1,637  1,619
Marketing expense  256  279  504  521
Professional fees  508  409  988  867
Collection expense  102  101  196  564
Net loss on other real estate owned  954  4,174  1,990  6,030
Other real estate owned expense  601  467  1,352  766
FDIC deposit insurance assessment  611  1,250  1,242  1,686
Debt prepayment penalties  2,492  --   2,492  -- 
Other  953  1,011  1,897  2,058
Total other expenses  12,629  14,589  23,527  26,586
         
Loss Before Income Taxes  (372)  (8,774)  (24)  (11,427)
Income Tax Benefit  --   (3,401)  --   (4,687)
Net Loss  $ (372)  $ (5,373)  $ (24)  $ (6,740)
         
Basic Loss Per Common Share  $ (0.02)  $ (0.33)  $ --   $ (0.42)
         
Diluted Loss Per Common Share  $ (0.02)  $ (0.33)  $ --   $ (0.42)
         
Dividends Declared Per Common Share  $ --   $ 0.01  $ --   $ 0.02
 
MBT FINANCIAL CORP.
CONSOLIDATED BALANCE SHEETS
       
  June 30, 2010 December 31, June 30, 2009
Dollars in thousands (Unaudited) 2009 (Unaudited)
Assets      
Cash and Cash Equivalents      
Cash and due from banks      
Non-interest bearing  $ 17,341  $ 18,448  $ 18,047
Interest bearing  61,267  51,298  5,513
Total cash and cash equivalents  78,608  69,746  23,560
       
Securities -- Held to Maturity  27,229  36,433  40,578
Securities -- Available for Sale  234,750  307,346  351,473
Federal Home Loan Bank stock -- at cost  13,086  13,086  13,086
Loans held for sale  699  931  825
Loans -- Net  783,063  824,916  885,656
Accrued interest receivable and other assets  45,261  50,580  46,517
Bank Owned Life Insurance  49,558  47,953  47,592
Premises and Equipment -- Net  31,424  32,378  32,295
Total assets  $ 1,263,678  $ 1,383,369  $ 1,441,582
       
Liabilities      
Deposits:      
Non-interest bearing  $ 144,864  $ 135,038  $ 128,254
Interest-bearing  878,793  896,753  911,225
Total deposits  1,023,657  1,031,791  1,039,479
       
Federal Home Loan Bank advances  113,500  228,500  248,500
Repurchase agreements  30,000  30,000  30,000
Interest payable and other liabilities  10,320  11,314  13,593
Total liabilities  1,177,477  1,301,605  1,331,572
       
Shareholders' Equity      
Common stock (no par value)  664  593  496
Retained Earnings  88,372  88,396  115,832
Accumulated other comprehensive loss  (2,835)  (7,225)  (6,318)
Total shareholders' equity  86,201  81,764  110,010
Total liabilities and shareholders' equity  $ 1,263,678  $ 1,383,369  $ 1,441,582
CONTACT:  MBT Financial Corp.          H. Douglas Chaffin, Chief Executive Officer            (734) 384-8123            doug.chaffin@mbandt.com          John L. Skibski, Chief Financial Officer            (734) 242-1879            john.skibski@mbandt.com          Mary Jane Town, Marketing Officer            (734) 240-2510            maryjane.town@mbandt.com

MBT Financial Corp. Logo

More from Press Releases

21st Century Fox Scoops Up Local News Stations

21st Century Fox Scoops Up Local News Stations

Walmart CEO: 'We Are Transforming Globally' With Flipkart

Walmart CEO: 'We Are Transforming Globally' With Flipkart

Three-Part FREE Webinar Series

Three-Part FREE Webinar Series

March 24 Full-Day Course Offering: Professional Approach to Trading SPX

March 24 Full-Day Course Offering: Professional Approach to Trading SPX

Meet the Real Money Pros: Market Strategies for 2012

Meet the Real Money Pros: Market Strategies for 2012