MONROE, Mich., July 21, 2015 (GLOBE NEWSWIRE) -- MBT Financial Corp., (Nasdaq:MBTF), the parent company of Monroe Bank & Trust, reported a net profit of $2,285,000 ($0.10 per share, basic and diluted), in the second quarter of 2015, compared to a profit of $1,687,000 ($0.08 per share, basic and diluted), in the second quarter of 2014. The net profit for the six months ended June 30, 2015 was $5,062,000 ($0.22 per share, basic and diluted), compared to $3,454,000 ($0.16 per share, basic and diluted) in the six months ended June 30, 2014.

Earnings for the Company improved this quarter due to improvements in the net interest income, the provision for loan losses, non-interest income, and non-interest expenses. The net interest margin decreased from 3.15% in the second quarter of 2014 to 3.12% in the second quarter of 2015, but the average amount of interest earning assets increased $76.7 million. As a result, net interest income improved by 6.2% in the second quarter of 2015 compared to the second quarter of 2014. 

The provision for loan losses decreased $100,000 compared to the second quarter of 2014 as improving asset quality and recoveries of loans previously charged off allowed the bank to maintain an adequate Allowance for Loan Losses without recording a provision in the second quarter of 2015. Loans charged off during the quarter totaled $407,000, while $295,000 was recovered on loans charged off previously. Total Loans increased $5.8 million during the second quarter of 2015, but the continued improvement in asset quality enabled the Company to reduce the Allowance for Loan and Lease Losses from 2.13% of loans at the end the first quarter to 2.09% as of the end of the second quarter.

Non-interest income increased $221,000, or 6.2% in the second quarter of 2015 compared to the second quarter of 2014. Excluding gains and losses from securities and other real estate transactions, non-interest income increased $97,000, or 2.6% as deposit account fees, debit card income, and mortgage loan origination fees all increased.

Total non-interest expenses decreased $61,000, or 0.6% in the second quarter of 2015 compared to the second quarter of 2014. Expenses related to Other Real Estate Owned decreased $182,000 or 50.4% due to the decrease in the number of properties owned. FDIC insurance decreased $191,000 or 30.8% due to a decrease in our assessment rate following the termination of the Bank's Consent Order with the FDIC and the State of Michigan in the second quarter of 2014.

Total assets of the company increased $13.4 million, or 1.1% compared to December 31, 2014. Total loans increased $13.2 million since the end of 2014. Capital increased $4.3 million since the end of last year primarily due to the year to date profit of $5.1 million. The Accumulated Other Comprehensive Income (AOCI) component of capital decreased $967,000 compared to the end of 2014. The AOCI decreased mainly due to a decrease in the market values of our investment securities that are classified as available for sale. The ratio of equity to assets increased from 10.52% at the end of 2014 to 10.75% at June 30, 2015. The Bank's Tier 1 Leverage ratio increased from 9.55% as of December 31, 2014 to 10.43% as of June 30, 2015.

H. Douglas Chaffin, President and CEO, commented, "We are pleased with our results for the first half of 2015, and we believe that our balance sheet is positioned to produce better earnings results when interest rates increase. While we remain concerned about the effect of global and national issues on our local economy, we plan to continue our efforts to improve profitability by growing our loan portfolio and improving our operational efficiency. Our current environment still presents challenges, but we remain confident in our ability to maintain our position as the premier independent provider of financial services in the communities we serve."

Conference CallMBT Financial Corp. will hold a conference call to discuss the second quarter results on Wednesday, July 22, 2015, 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 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 #10068486. The replay will be available until August 22, 2015 at 9:00 a.m. Eastern. The webcast 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 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 independently owned community banks in Southeast Michigan.  With nearly $1.3 billion in assets, MBT is a full-service bank, offering a complete range of business and personal accounts, credit and mortgage options, investment and retirement services and award-winning financial literacy outreach. MBT employee volunteers contribute approximately 9,000 hours of community service annually. MBT's Commercial Lending Group is a top SBA and MEDC lending partner.  MBT's Wealth Management Group ("WMG") is one of the largest and most respected in Michigan.  The Michigan Bankers Association ranks MBT fourth among all Michigan banks for total trust assets.  With 25 offices, 47 ATMs, convenient mobile and online banking, a robust online and social media presence and a comprehensive array of products and services, MBT prides itself in offering World Class Banking with a Local Address. Visit MBT's website at www.mbandt.com.

Forward-Looking StatementsCertain 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
          2015       2015       2014       2014       2014          
(dollars in thousands except per share data)   2nd Qtr   1st Qtr   4th Qtr   3rd Qtr   2nd Qtr     2015       2014  
                                 
EARNINGS                            
  Net interest income   $   9,081     $   9,342     $   8,802     $   8,852     $   8,552     $   18,423     $   17,047  
  FTE Net interest income   $   9,213     $   9,474     $   8,934     $   8,989     $   8,693     $   18,687     $   17,333  
  Provision for loan and lease losses   $   -      $   (800 )   $   -      $   (700 )   $   100     $   (800 )   $   200  
  Non interest income   $   3,805     $   3,625     $   3,980     $   2,125     $   3,584     $   7,430     $   7,248  
  Non interest expense   $   9,730     $   9,819     $   9,815     $   9,362     $   9,791     $   19,549     $   19,490  
  Net income   $   2,285     $   2,777     $   2,149     $   1,712     $   1,687     $   5,062     $   3,454  
  Basic earnings per share   $   0.10     $   0.12     $   0.09     $   0.08     $   0.08     $   0.22     $   0.16  
  Diluted earnings per share   $   0.10     $   0.12     $   0.09     $   0.07     $   0.08     $   0.22     $   0.16  
  Average shares outstanding      22,733,739       22,721,845       22,697,204       22,691,593       22,205,086       22,727,825       21,515,737  
  Average diluted shares outstanding     22,931,544       22,906,334       22,956,549       22,986,918       22,498,236       22,917,997       21,805,165  
                                 
PERFORMANCE RATIOS                            
  Return on average assets     0.72 %     0.89 %     0.70 %     0.56 %     0.57 %     0.80 %     0.58 %
  Return on average common equity     6.48 %     8.28 %     6.45 %     5.21 %     5.50 %     7.36 %     5.90 %
                                 
  Base Margin     3.04 %     3.10 %     3.07 %     3.09 %     3.08 %     3.07 %     3.09 %
  FTE Adjustment     0.04 %     0.05 %     0.05 %     0.05 %     0.05 %     0.05 %     0.05 %
  Loan Fees     0.04 %     0.12 %     0.02 %     0.03 %     0.02 %     0.08 %     0.02 %
  FTE Net Interest Margin     3.12 %     3.27 %     3.14 %     3.17 %     3.15 %     3.20 %     3.16 %
                                 
  Efficiency ratio     73.18 %     73.66 %     75.19 %     71.66 %     75.85 %     73.42 %     75.99 %
  Full-time equivalent employees       350         355         366         370         367         352         369  
                                 
CAPITAL                            
  Average equity to average assets     11.09 %     10.70 %     10.78 %     10.71 %     10.28 %     10.90 %     9.88 %
  Book value per share   $   6.11     $   6.17     $   5.92     $   5.76     $   5.68     $   6.11     $   5.68  
  Cash dividend per share   $   -      $   -      $   -      $   -      $   -      $   -      $   -   
                                 
ASSET QUALITY                            
  Loan Charge-Offs   $   407     $   322     $   455     $   3,353     $   1,662     $   729     $   2,336  
  Loan Recoveries   $   295     $   1,105     $   533     $   2,182     $   405     $   1,400     $   928  
  Net Charge-Offs   $   112     $   (783 )   $   (78 )   $   1,171     $   1,257     $   (671 )   $   1,408  
                                 
  Allowance for loan and lease losses   $   13,079     $   13,191     $   13,208     $   13,130     $   15,001     $   13,079     $   15,001  
                                 
  Nonaccrual Loans   $   11,135     $   12,329     $   13,040     $   13,351     $   19,048     $   11,135     $   19,048  
  Loans 90 days past due   $   -      $   3     $   10     $   7     $   4     $   -      $   4  
  Restructured loans   $   22,812     $   22,788     $   22,896     $   24,094     $   29,658     $   22,812     $   29,658  
    Total non performing loans   $   33,947     $   35,120     $   35,946     $   37,452     $   48,710     $   33,947     $   48,710  
  Other real estate owned & other assets   $   4,237     $   4,893     $   5,633     $   6,043     $   7,933     $   4,237     $   7,933  
  Nonaccrual Investment Securities   $   -      $   -      $   -      $   -      $   3,403     $   -      $   3,403  
    Total non performing assets   $   38,184     $   40,013     $   41,579     $   43,495     $   60,046     $   38,184     $   60,046  
                                 
  Classified Loans   $   41,952     $   46,668     $   48,978     $   48,662     $   63,665     $   41,952     $   63,665  
  Other real estate owned & other assets   $   4,237     $   4,893     $   5,633     $   6,043     $   7,933     $   4,237     $   7,933  
  Classified Investment Securities   $   -      $   -      $   -      $   -      $   9,379     $   -      $   9,379  
    Total classified assets   $   46,189     $   51,561     $   54,611     $   54,705     $   80,977     $   46,189     $   80,977  
                                 
  Net loan charge-offs to average loans     0.07 %     -0.52 %     -0.05 %     0.78 %     0.84 %     -0.22 %     0.48 %
  Allowance for loan losses to total loans     2.09 %     2.13 %     2.16 %     2.24 %     2.50 %     2.09 %     2.50 %
  Non performing loans to gross loans     5.43 %     5.67 %     5.88 %     6.39 %     8.12 %     5.43 %     8.12 %
  Non performing assets to total assets     2.96 %     3.06 %     3.25 %     3.47 %     4.96 %     2.96 %     4.96 %
  Classified assets to total capital     31.36 %     35.70 %     41.64 %     42.73 %     63.80 %     31.36 %     63.80 %
  Allowance to non performing loans     38.53 %     37.56 %     36.74 %     35.06 %     30.80 %     38.53 %     30.80 %
                                 
END OF PERIOD BALANCES                            
  Loans and leases   $   625,172     $   619,385     $   610,880     $   586,152     $   599,803     $   625,172     $   599,803  
  Total earning assets   $   1,177,475     $   1,196,949     $   1,160,371     $   1,135,016     $   1,093,461     $   1,177,475     $   1,093,461  
  Total assets   $   1,292,104     $   1,307,053     $   1,278,657     $   1,251,812     $   1,209,831     $   1,292,104     $   1,209,831  
  Deposits   $   1,121,280     $   1,135,312     $   1,111,811     $   1,089,484     $   1,049,789     $   1,121,280     $   1,049,789  
  Interest Bearing Liabilities   $   898,116     $   914,569     $   908,590     $   894,753     $   869,843     $   898,116     $   869,843  
  Shareholders' equity   $   138,864     $   140,208     $   134,536     $   130,652     $   128,794     $   138,864     $   128,794  
  Tier 1 Capital (Bank)   $   134,215     $   131,235     $   117,944     $   114,898     $   111,929     $   134,215     $   111,929  
  Total Shares Outstanding       22,741,898         22,730,647         22,718,077         22,694,906         22,690,142         22,741,898         22,690,142  
                                 
AVERAGE BALANCES                            
  Loans and leases   $   621,010     $   615,994     $   606,060     $   597,771     $   598,392     $   618,518     $   597,664  
  Total earning assets   $   1,183,291     $   1,176,825     $   1,131,448     $   1,124,988     $   1,106,590     $   1,180,078     $   1,103,920  
  Total assets   $   1,275,744     $   1,270,661     $   1,225,996     $   1,217,640     $   1,196,912     $   1,273,216     $   1,194,863  
  Deposits   $   1,121,658     $   1,124,633     $   1,085,325     $   1,079,425     $   1,058,873     $   1,123,137     $   1,062,433  
  Interest Bearing Liabilities   $   906,725     $   917,079     $   880,276     $   884,832     $   880,030     $   911,873     $   882,405  
  Shareholders' equity   $   141,507     $   135,971     $   132,121     $   130,404     $   123,011     $   138,754     $   118,033  
                                 

 
MBT FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
                     
        Quarter Ended June 30,   Six Months Ended June 30,
Dollars in thousands (except per share data)   2015       2014       2015       2014  
Interest Income              
Interest and fees on loans $   7,154     $   7,021     $   14,586     $   14,100  
Interest on investment securities-              
  Tax-exempt     273         297         548         604  
  Taxable     2,436         2,200         4,864         4,318  
Interest on balances due from banks     14         22         40         54  
      Total interest income     9,877         9,540         20,038         19,076  
                     
Interest Expense              
Interest on deposits     619         801         1,264         1,656  
Interest on borrowed funds     177         187         351         373  
      Total interest expense     796         988         1,615         2,029  
                     
Net Interest Income     9,081         8,552         18,423         17,047  
Provision For Loan Losses     -          100         (800 )       200  
                     
Net Interest Income After              
Provision For Loan Losses     9,081         8,452         19,223         16,847  
                     
Other Income              
Income from wealth management services     1,191         1,168         2,413         2,302  
Service charges and other fees     1,030         968         1,924         1,900  
Debit Card income     591         542         1,155         1,031  
Net gain on sales of securities     22         219         258         276  
Net gain (loss) on other real estate owned     (21 )       (342 )       (284 )       (330 )
Origination fees on mortgage loans sold     137         88         266         150  
Bank Owned Life Insurance income     362         351         633         705  
Other real estate owned rent     103         130         137         265  
Other       390         460         928         949  
      Total other income     3,805         3,584         7,430         7,248  
                     
Other Expenses              
Salaries and employee benefits     5,750         5,804         11,624         11,532  
Occupancy expense     606         670         1,426         1,414  
Equipment expense     790         662         1,524         1,279  
Marketing expense     308         212         554         415  
Professional fees     550         521         1,126         939  
Other real estate owned expense     179         361         305         700  
FDIC deposit insurance assessment     429         620         843         1,260  
Bonding and other insurance expense     227         255         457         519  
Telephone expense     109         104         204         247  
Other       782         582         1,486         1,185  
      Total other expenses     9,730         9,791         19,549         19,490  
                     
Profit Before Income Taxes     3,156         2,245         7,104         4,605  
Income Tax Expense     871         558         2,042         1,151  
Net Profit $   2,285     $   1,687     $   5,062     $   3,454  
                     
Basic Earnings Per Common Share $   0.10     $   0.08     $   0.22     $   0.16  
                     
Diluted Earnings Per Common Share $   0.10     $   0.08     $   0.22     $   0.16  
                     
Dividends Declared Per Common Share $   -      $   -      $   -      $   -   
                     

 
MBT FINANCIAL CORP.
CONSOLIDATED BALANCE SHEETS
             
             
        (Unaudited)    
Dollars in thousands June 30, 2015   December 31, 2014
Assets        
Cash and Cash Equivalents      
  Cash and due from banks      
    Non-interest bearing $   14,398     $   15,957  
    Interest bearing     9,175         36,165  
    Total cash and cash equivalents     23,573         52,122  
             
Securities - Held to Maturity     35,277         32,613  
Securities - Available for Sale     503,703         473,176  
Federal Home Loan Bank stock - at cost     4,148         7,537  
Loans held for sale     1,602         548  
             
Loans       623,570         610,332  
Allowance for Loan Losses     (13,079 )       (13,208 )
Loans - Net     610,491         597,124  
             
Accrued interest receivable and other assets     28,189         29,465  
Other Real Estate Owned     4,233         5,615  
Bank Owned Life Insurance     52,373         51,825  
Premises and Equipment - Net     28,515         28,632  
    Total assets $   1,292,104     $   1,278,657  
             
Liabilities      
Deposits:      
  Non-interest bearing $   238,164     $   218,221  
  Interest-bearing     883,116         893,590  
    Total deposits     1,121,280         1,111,811  
             
Repurchase agreements     15,000         15,000  
Accrued interest payable and other liabilities     16,960         17,310  
    Total liabilities     1,153,240         1,144,121  
             
Shareholders' Equity      
Common stock (no par value)     23,270         23,037  
Retained Earnings     119,194         114,132  
Unearned Compensation     (30 )       -   
Accumulated other comprehensive income (loss)     (3,570 )       (2,633 )
    Total shareholders' equity     138,864         134,536  
    Total liabilities and shareholders' equity $   1,292,104     $   1,278,657  

 

 

FOR FURTHER INFORMATION:H. Douglas Chaffin		Chief Executive Officer		(734) 384-8123			doug.chaffin@mbandt.com	John L. SkibskiChief Financial Officer(734) 242-1879	john.skibski@mbandt.com	 

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