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MBT Financial Corp. Announces Preliminary Fourth Quarter and Full Year 2015 Profit

MONROE, Mich., Jan. 25, 2016 (GLOBE NEWSWIRE) -- MBT Financial Corp., (Nasdaq:MBTF), the parent company of Monroe Bank & Trust, reported a preliminary net profit of $4,014,000 ($0.18 per share, basic and diluted), in the fourth quarter of 2015, compared to a profit of $2,149,000 ($0.09 per share, basic and diluted), in the fourth quarter of 2014. The net profit for the year ended December 31, 2015 was $12,082,000 ($0.53 per share, basic and diluted), compared to $7,315,000 ($0.33 per share, basic and diluted) in the year ended December 31, 2014.

Earnings for the Company improved this quarter largely due to the negative provision for loan losses expense of $2.0 million. Net interest income and non-interest expenses also improved compared to the fourth quarter of 2014. The net interest margin decreased from 3.14% in the fourth quarter of 2014 to 3.11% in the fourth quarter of 2015, but the average amount of interest earning assets increased $79.9 million. As a result, net interest income improved by 6.0% in the fourth quarter of 2015 compared to the fourth quarter of 2014.

The provision for loan losses decreased $2 million compared to the fourth quarter of 2014 as no provision was recorded in the fourth quarter of 2014 and a negative expense of $2 million was recorded this quarter. Classified assets decreased 16.8% during the fourth quarter and the analysis of the risk in the loan portfolio indicated that the Allowance for Loan Losses should be reduced by $2.1 million, or 16.1% during the quarter. Total Loans decreased $6.6 million during the fourth quarter, but increased $7.9 million during the year. The continued improvement in asset quality enabled the Company to reduce the Allowance for Loan and Lease Losses from 2.16% of loans at the end of 2014 to 1.76% as of the end of 2015.

Non-interest income decreased $61,000, or 1.5% in the fourth quarter of 2015 compared to the fourth quarter of 2014. Deposit account fees and debit card income increased while wealth management income and rental income from Other Real Estate Owned decreased.

Total non-interest expenses decreased $330,000, or 3.4% in the fourth quarter of 2015 compared to the fourth quarter of 2014. Salaries and benefits decreased $298,000 or 4.9% due to an efficiency initiative that reduced our staffing in the fourth quarter of 2015. Expenses related to Other Real Estate Owned decreased $152,000 due to the decrease in the number of properties owned and FDIC deposit insurance expense decreased $239,000 as the assessment rate decreased when the FDIC and the State of Michigan terminated the Bank’s informal regulatory agreement in 2015.

Total assets of the company increased $63.7 million, or 5.0% compared to December 31, 2014. Total loans increased $7.9 million since the end of 2014. Capital increased $12.8 million during the year primarily due to the profit of $12.1 million. The ratio of equity to assets increased from 10.52% at the end of 2014 to 10.98% at December 31, 2015. The Bank’s Tier 1 Leverage ratio increased from 9.55% as of December 31, 2014 to 10.90% as of December 31, 2015.

H. Douglas Chaffin, President and CEO, commented, “We are pleased with our results for 2015. We focused on improving asset quality for the last several years, and the results of those efforts are now being fully reflected in our earnings. 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. At the beginning of the fourth quarter we began an efficiency initiative that will provide meaningful expense reductions beginning in the first quarter of 2016 while maintaining a high level of customer service and satisfaction. 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 Call

MBT Financial Corp. will hold a conference call to discuss the 2015 results on Tuesday, January 26, 2016, 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 #10078236. The replay will be available until February 26, 2016 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 over $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 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 offices and ATMs in Monroe, Lenawee, and Wayne Counties, 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 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
2015 2015 2015 2015 2014
(dollars in thousands except per share data) 4th Qtr 3rd Qtr 2nd Qtr 1st Qtr 4th Qtr 2015 2014
EARNINGS
Net interest income $9,328 $9,224 $9,081 $9,342 $8,802 $36,975 $34,701
FTE Net interest income $9,469 $9,358 $9,213 $9,474 $8,934 $37,514 $35,256
Provision for loan and lease losses $(2,000) $(200) $- $(800) $- $(3,000) $(500)
Non interest income $3,919 $3,978 $3,805 $3,625 $3,980 $15,327 $13,353
Non interest expense $9,485 $9,166 $9,730 $9,819 $9,815 $38,200 $38,667
Net income $4,014 $3,006 $2,285 $2,777 $2,149 $12,082 $7,315
Basic earnings per share $0.18 $0.13 $0.10 $0.12 $0.09 $0.53 $0.33
Diluted earnings per share $0.18 $0.13 $0.10 $0.12 $0.09 $0.53 $0.33
Average shares outstanding 22,764,801 22,748,974 22,733,739 22,721,845 22,697,204 22,742,476 22,109,911
Average diluted shares outstanding 22,967,108 22,949,063 22,931,544 22,906,334 22,956,549 22,916,754 22,379,337
PERFORMANCE RATIOS
Return on average assets 1.22% 0.93% 0.72% 0.89% 0.70% 0.94% 0.61%
Return on average common equity 10.79% 8.48% 6.48% 8.28% 6.45% 8.54% 5.87%
Base Margin 3.04% 3.05% 3.04% 3.10% 3.07% 3.06% 3.08%
FTE Adjustment 0.05% 0.04% 0.04% 0.05% 0.05% 0.05% 0.05%
Loan Fees 0.02% 0.02% 0.04% 0.12% 0.02% 0.05% 0.02%
FTE Net Interest Margin 3.11% 3.11% 3.12% 3.27% 3.14% 3.16% 3.15%
Efficiency ratio 72.10% 67.83% 73.18% 73.66% 75.19% 71.68% 74.69%
Full-time equivalent employees 297 337 350 355 366 335 368
CAPITAL
Average equity to average assets 11.34% 10.96% 11.09% 10.70% 10.78% 11.03% 10.32%
Book value per share $6.46 $6.42 $6.11 $6.17 $5.92 $6.46 $5.92
Cash dividend per share $- $- $- $- $- $- $-
ASSET QUALITY
Loan Charge-Offs $1,191 $192 $407 $322 $455 $2,112 $6,114
Loan Recoveries $1,091 $309 $295 $1,105 $533 $2,800 $3,643
Net Charge-Offs $100 $(117) $112 $(783) $(78) $(688) $2,471
Allowance for loan and lease losses $10,896 $12,996 $13,079 $13,191 $13,208 $10,896 $13,208
Nonaccrual Loans $8,633 $10,623 $11,135 $12,329 $13,040 $8,633 $13,040
Loans 90 days past due $4 $6 $- $3 $10 $4 $10
Restructured loans $18,910 $20,972 $22,812 $22,788 $22,896 $18,910 $22,896
Total non performing loans $27,547 $31,601 $33,947 $35,120 $35,946 $27,547 $35,946
Other real estate owned & other assets $2,383 $2,154 $4,237 $4,893 $5,633 $2,383 $5,633
Nonaccrual Investment Securities $- $- $- $- $- $- $-
Total non performing assets $29,930 $33,755 $38,184 $40,013 $41,579 $29,930 $41,579
Classified Loans $28,490 $34,948 $41,952 $46,668 $48,978 $28,490 $48,978
Other real estate owned & other assets $2,383 $2,154 $4,237 $4,893 $5,633 $2,383 $5,633
Total classified assets $30,873 $37,102 $46,189 $51,561 $54,611 $30,873 $54,611
Net loan charge-offs to average loans 0.06% -0.07% 0.07% -0.52% -0.05% -0.11% 0.41%
Allowance for loan losses to total loans 1.76% 2.08% 2.09% 2.13% 2.16% 1.76% 2.16%
Non performing loans to gross loans 4.45% 5.05% 5.43% 5.67% 5.88% 4.45% 5.88%
Non performing assets to total assets 2.23% 2.56% 2.96% 3.06% 3.25% 2.23% 3.25%
Classified assets to total capital 20.06% 24.55% 31.36% 35.70% 41.64% 20.06% 41.64%
Allowance to non performing loans 39.55% 41.13% 38.53% 37.56% 36.74% 39.55% 36.74%
END OF PERIOD BALANCES
Loans and leases $618,785 $625,406 $625,172 $619,385 $610,880 $618,785 $610,880
Total earning assets $1,231,128 $1,212,892 $1,177,475 $1,196,949 $1,160,371 $1,231,128 $1,160,371
Total assets $1,342,313 $1,316,719 $1,292,104 $1,307,053 $1,278,657 $1,342,313 $1,278,657
Deposits $1,165,393 $1,136,809 $1,121,280 $1,135,312 $1,111,811 $1,165,393 $1,111,811
Interest Bearing Liabilities $926,598 $904,297 $898,116 $914,569 $908,590 $926,598 $908,590
Shareholders' equity $147,341 $146,154 $138,864 $140,208 $134,536 $147,341 $134,536
Tier 1 Capital (Bank) $142,997 $138,163 $134,215 $131,235 $117,944 $142,997 $117,944
Total Shares Outstanding 22,790,707 22,761,327 22,741,898 22,730,647 22,718,077 22,790,707 22,718,077
AVERAGE BALANCES
Loans and leases $621,217 $624,921 $621,010 $615,994 $606,060 $620,811 $599,803
Total earning assets $1,211,342 $1,190,561 $1,183,291 $1,176,825 $1,131,448 $1,190,599 $1,116,165
Total assets $1,302,176 $1,283,384 $1,275,744 $1,270,661 $1,225,996 $1,283,078 $1,208,450
Deposits $1,139,475 $1,130,807 $1,121,658 $1,124,633 $1,085,325 $1,129,191 $1,072,485
Interest Bearing Liabilities $902,216 $903,648 $906,725 $917,079 $880,276 $907,368 $882,480
Shareholders' equity $147,626 $140,619 $141,507 $135,971 $132,121 $141,460 $124,702

MBT FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
Quarter Ended December 31, Year Ended December 31,
Dollars in thousands (except per share data) 2015 2014 2015 2014
Interest Income
Interest and fees on loans$7,201 $7,096 $29,012 $28,451
Interest on investment securities-
Tax-exempt 290 279 1,116 1,171
Taxable 2,507 2,275 9,808 8,815
Interest on balances due from banks 41 16 105 102
Total interest income 10,039 9,666 40,041 38,539
Interest Expense
Interest on deposits 533 686 2,359 3,109
Interest on borrowed funds 178 178 707 729
Total interest expense 711 864 3,066 3,838
Net Interest Income 9,328 8,802 36,975 34,701
Provision For Loan Losses (2,000) - (3,000) (500)
Net Interest Income After
Provision For Loan Losses 11,328 8,802 39,975 35,201
Other Income
Income from wealth management services 1,152 1,253 4,728 4,749
Service charges and other fees 1,115 1,025 4,173 3,979
Debit Card income 689 586 2,438 2,174
Net gain (loss) on sales of securities 124 90 398 (654)
Net gain (loss) on other real estate owned (36) 18 (284) (946)
Origination fees on mortgage loans sold 129 148 579 378
Bank Owned Life Insurance income 362 354 1,353 1,416
Other real estate owned rent 12 72 217 436
Other 372 434 1,725 1,821
Total other income 3,919 3,980 15,327 13,353
Other Expenses
Salaries and employee benefits 5,777 6,075 23,095 23,238
Occupancy expense 696 696 2,770 2,736
Equipment expense 794 725 3,026 2,727
Marketing expense 283 199 1,104 839
Professional fees 523 512 2,130 2,132
Other real estate owned expense 8 160 372 1,047
FDIC deposit insurance assessment 175 414 1,230 1,949
Bonding and other insurance expense 206 258 866 1,035
Telephone expense 105 119 422 474
Other 918 657 3,185 2,490
Total other expenses 9,485 9,815 38,200 38,667
Profit Before Income Taxes 5,762 2,967 17,102 9,887
Income Tax Expense 1,748 818 5,020 2,572
Net Profit$4,014 $2,149 $12,082 $7,315
Basic Earnings Per Common Share$0.18 $0.09 $0.53 $0.33
Diluted Earnings Per Common Share$0.18 $0.09 $0.53 $0.33
Dividends Declared Per Common Share$- $- $- $-

MBT FINANCIAL CORP.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
Dollars in thousandsDecember 31, 2015 December 31, 2014
Assets
Cash and Cash Equivalents
Cash and due from banks
Non-interest bearing$14,996 $15,957
Interest bearing 70,054 36,165
Total cash and cash equivalents 85,050 52,122
Securities - Held to Maturity 41,282 32,613
Securities - Available for Sale 496,859 473,176
Federal Home Loan Bank stock - at cost 4,148 7,537
Loans held for sale 1,477 548
Loans 617,308 610,332
Allowance for Loan Losses (10,896) (13,208)
Loans - Net 606,412 597,124
Accrued interest receivable and other assets 23,365 29,465
Other Real Estate Owned 2,383 5,615
Bank Owned Life Insurance 53,093 51,825
Premises and Equipment - Net 28,244 28,632
Total assets$1,342,313 $1,278,657
Liabilities
Deposits:
Non-interest bearing$253,795 $218,221
Interest-bearing 911,598 893,590
Total deposits 1,165,393 1,111,811
Repurchase agreements 15,000 15,000
Accrued interest payable and other liabilities 14,579 17,310
Total liabilities 1,194,972 1,144,121
Shareholders' Equity
Common stock (no par value) 23,492 23,037
Retained Earnings 126,214 114,132
Unearned Compensation (13) -
Accumulated other comprehensive income (loss) (2,352) (2,633)
Total shareholders' equity 147,341 134,536
Total liabilities and shareholders' equity$1,342,313 $1,278,657


FOR FURTHER INFORMATION: 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 Julian J. Broggio Director of Marketing (734) 240-2341 julian.broggio@mbandt.com

Source:MBT Financial Corp.