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MBT Financial Corp. Announces Revised 2012 Profit

MBT Financial Corp. Logo

MONROE, Mich., Feb. 13, 2013 (GLOBE NEWSWIRE) -- MBT Financial Corp., (Nasdaq:MBTF), the parent company of Monroe Bank & Trust, reported a revision to its preliminary results that were announced on January 24, 2013. The Bank reassessed recent guidance from banking regulators regarding the Allowance for Loan and Lease Losses (ALLL) on troubled debt restructurings, and decided to increase its ALLL as of December 31, 2012 by recording an additional provision for loan loss expense of $500,000. As a result, the previously announced preliminary fourth quarter 2012 net profit of $6,118,000, or $0.36 per share (basic and diluted), is reduced to $5,618,000, or $0.32 per share (basic and diluted). The previously announced full year profit of $8,976,000, or $0.52 per share (basic and diluted) is reduced to $8,476,000, or $0.49 per share (basic and diluted) and the ALLL increased from the previously reported $16,799,000 to $17,299,000.

H. Douglas Chaffin, President and CEO, commented, "Throughout the financial and economic crisis we continued to work with our customers who were struggling financially. We currently have $38.5 million of loans in which we restructured payment terms and/or interest rates that are considered Troubled Debt Restructurings (TDRs). Even though payments on these loans are current and are performing according to the terms of the restructure, they are classified technically as "non-performing" for reporting purposes. The Company recorded the additional provision expense as a result of recently issued guidance from the Federal bank regulatory agencies recommending additional reserves be taken with respect to certain performing TDRs. While there appears to be some conflict between this new regulatory guidance and the traditional accounting treatment in calculating reserves for loans of this type, we recalculated our ALLL and increased our allowance for the fourth quarter to follow the most conservative approach."

These revised results are preliminary and unaudited. Final, audited results will be included in the Company's Annual Report on Form 10-K which we anticipate filing with the SEC in mid March. These preliminary results include significant estimates based on preliminary analyses which may change due to subsequent events or completion of more thorough analyses. The most significant estimates included in these results are the Allowance for Loan Losses and the Deferred Tax Asset Valuation Allowance.

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 24 offices, 40 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
(dollars in thousands except per share data) 2012
4th Qtr
2012
3rd Qtr
2012
2nd Qtr
2012
1st Qtr
2011
4th Qtr
2012 2011
EARNINGS
Net interest income $ 8,316 $ 8,621 $ 8,784 $ 8,928 $ 8,824 $ 34,649 $ 35,127
FTE Net interest income $ 8,456 $ 8,766 $ 8,936 $ 9,105 $ 8,981 $ 35,263 $ 35,768
Provision for loan and lease losses $ 2,500 $ 1,550 $ 1,050 $ 2,250 $ 2,500 $ 7,350 $ 13,800
Non interest income $ 4,173 $ 4,023 $ 3,564 $ 4,677 $ 6,390 $ 16,437 $ 18,230
Non interest expense $ 9,371 $ 9,689 $ 9,622 $ 10,012 $ 11,783 $ 38,694 $ 42,819
Net income (loss) $ 5,618 $ 1,388 $ 253 $ 1,217 $ 431 $ 8,476 $ (3,762)
Basic earnings (loss) per share $ 0.32 $ 0.08 $ 0.01 $ 0.07 $ 0.02 $ 0.49 $ (0.22)
Diluted earnings (loss) per share $ 0.32 $ 0.08 $ 0.01 $ 0.07 $ 0.02 $ 0.49 $ (0.22)
Average shares outstanding 17,385,761 17,321,337 17,315,696 17,304,781 17,285,762 17,332,012 17,270,528
Average diluted shares outstanding 17,452,206 17,402,653 17,382,419 17,347,641 17,285,762 17,387,059 17,270,528
PERFORMANCE RATIOS
Return on average assets 1.79% 0.45% 0.08% 0.39% 0.14% 0.68% -0.30%
Return on average common equity 27.96% 7.09% 1.33% 6.39% 2.26% 10.90% -5.11%
Base Margin 2.84% 2.94% 3.06% 3.10% 3.07% 2.98% 3.03%
FTE Adjustment 0.05% 0.05% 0.05% 0.06% 0.06% 0.05% 0.06%
Loan Fees 0.03% 0.06% 0.04% 0.03% 0.03% 0.04% 0.04%
FTE Net Interest Margin 2.92% 3.05% 3.15% 3.19% 3.16% 3.07% 3.13%
Efficiency ratio 70.69% 69.72% 68.86% 73.19% 68.80% 70.59% 69.74%
Full-time equivalent employees 357 352 348 349 349 352 349
CAPITAL
Average equity to average assets 6.41% 6.28% 6.21% 6.16% 6.14% 6.26% 5.89%
Book value per share $ 4.80 $ 4.57 $ 4.43 $ 4.38 $ 4.38 $ 4.80 $ 4.38
Cash dividend per share $ -- $ -- $ -- $ -- $ -- $ -- $ --
ASSET QUALITY
Loan Charge-Offs $ 4,658 $ 2,156 $ 2,369 $ 2,832 $ 3,733 $ 12,015 $ 15,872
Loan Recoveries $ 334 $ 243 $ 324 $ 198 $ 229 $ 1,099 $ 1,714
Net Charge-Offs $ 4,324 $ 1,913 $ 2,045 $ 2,634 $ 3,504 $ 10,916 $ 14,158
Allowance for loan and lease losses $ 17,299 $ 19,123 $ 19,486 $ 20,481 $ 20,865 $ 17,299 $ 20,865
Nonaccrual Loans $ 31,343 $ 44,422 $ 40,139 $ 45,436 $ 50,717 $ 31,343 $ 50,717
Loans 90 days past due $ 1 $ 138 $ 2 $ 2 $ 20 $ 1 $ 20
Restructured loans $ 38,460 $ 28,184 $ 26,134 $ 25,954 $ 24,774 $ 38,460 $ 24,774
Total non performing loans $ 69,804 $ 72,744 $ 66,275 $ 71,392 $ 75,511 $ 69,804 $ 75,511
Other real estate owned & other assets $ 14,294 $ 13,784 $ 12,777 $ 14,277 $ 16,711 $ 14,294 $ 16,711
Nonaccrual Investment Securities $ 3,045 $ 2,916 $ 2,829 $ 2,888 $ 2,984 $ 3,045 $ 2,984
Total non performing assets $ 87,143 $ 89,444 $ 81,881 $ 88,557 $ 95,206 $ 87,143 $ 95,206
Problem Loans Still Performing $ 38,086 $ 42,359 $ 44,918 $ 40,592 $ 41,558 $ 38,086 $ 41,558
Total Problem Assets $ 125,229 $ 131,803 $ 126,799 $ 129,149 $ 136,764 $ 125,229 $ 136,764
Net loan charge-offs to average loans 2.69% 1.15% 1.23% 1.57% 2.01% 1.65% 1.97%
Allowance for loan losses to total loans 2.75% 2.94% 2.91% 3.07% 3.07% 2.75% 3.07%
Non performing loans to gross loans 11.10% 11.17% 9.91% 10.70% 11.10% 11.10% 11.10%
Non performing assets to total assets 6.87% 7.24% 6.63% 7.08% 7.69% 6.87% 7.69%
Allowance to non performing loans 24.78% 26.29% 29.40% 28.69% 27.63% 24.78% 27.63%
END OF PERIOD BALANCES
Loans and leases $ 628,769 $ 651,218 $ 668,604 $ 667,294 $ 680,510 $ 628,769 $ 680,510
Total earning assets $ 1,167,318 $ 1,138,424 $ 1,138,191 $ 1,152,128 $ 1,139,172 $ 1,167,318 $ 1,139,172
Total assets $ 1,268,595 $ 1,236,064 $ 1,235,271 $ 1,250,449 $ 1,238,027 $ 1,268,595 $ 1,238,027
Deposits $ 1,048,830 $ 1,020,410 $ 1,017,502 $ 1,035,550 $ 1,022,310 $ 1,048,830 $ 1,022,310
Interest Bearing Liabilities $ 987,949 $ 974,097 $ 976,218 $ 998,226 $ 984,593 $ 987,949 $ 984,593
Shareholders' equity $ 83,505 $ 79,098 $ 76,784 $ 75,899 $ 75,711 $ 83,505 $ 75,711
Total Shares Outstanding 17,396,179 17,324,063 17,318,153 17,312,707 17,291,729 17,396,179 17,291,729
AVERAGE BALANCES
Loans and leases $ 640,558 $ 660,901 $ 668,632 $ 672,907 $ 690,569 $ 660,694 $ 717,772
Total earning assets $ 1,154,384 $ 1,144,823 $ 1,140,410 $ 1,145,865 $ 1,129,960 $ 1,146,388 $ 1,145,439
Total assets $ 1,247,129 $ 1,240,752 $ 1,234,984 $ 1,242,995 $ 1,231,959 $ 1,241,480 $ 1,248,822
Deposits $ 1,030,677 $ 1,025,730 $ 1,019,305 $ 1,027,501 $ 1,015,703 $ 1,025,817 $ 1,030,717
Interest Bearing Liabilities $ 972,104 $ 979,494 $ 980,007 $ 993,711 $ 977,956 $ 981,298 $ 1,010,671
Shareholders' equity $ 79,940 $ 77,884 $ 76,637 $ 76,625 $ 75,673 $ 77,777 $ 73,584
MBT FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS - UNAUDITED
Quarter Ended December 31, Year Ended December 31,
Dollars in thousands (except per share data) 2012 2011 2012 2011
Interest Income
Interest and fees on loans $ 8,277 $ 9,342 $ 35,050 $ 39,712
Interest on investment securities-
Tax-exempt 329 346 1,405 1,415
Taxable 1,862 2,071 7,885 8,282
Interest on balances due from banks 50 39 195 151
Total interest income 10,518 11,798 44,535 49,560
Interest Expense
Interest on deposits 1,366 2,077 6,330 10,698
Interest on borrowed funds 836 897 3,556 3,735
Total interest expense 2,202 2,974 9,886 14,433
Net Interest Income 8,316 8,824 34,649 35,127
Provision For Loan Losses 2,500 2,500 7,350 13,800
Net Interest Income After
Provision For Loan Losses 5,816 6,324 27,299 21,327
Other Income
Income from wealth management services 1,169 964 4,028 3,919
Service charges and other fees 1,172 1,172 4,564 4,694
Net gain on sales of securities 41 433 1,280 1,084
Origination fees on mortgage loans sold 278 211 902 482
Bank Owned Life Insurance income 380 2,400 1,458 3,607
Other 1,133 1,210 4,205 4,444
Total other income 4,173 6,390 16,437 18,230
Other Expenses
Salaries and employee benefits 5,185 4,864 20,313 19,475
Occupancy expense 619 857 2,677 3,103
Equipment expense 689 777 2,915 2,941
Marketing expense 177 154 701 849
Professional fees 617 644 2,263 2,477
Collection expense 50 52 238 233
Net loss on other real estate owned 206 618 1,078 3,561
Other real estate owned expense 238 650 1,496 2,108
FDIC deposit insurance assessment 677 693 2,744 2,947
Death benefit expense -- 1,639 -- 1,639
Other 913 835 4,269 3,486
Total other expenses 9,371 11,783 38,694 42,819
Profit (Loss) Before Income Taxes 618 931 5,042 (3,262)
Income Tax (Benefit) Expense (5,000) 500 (3,434) 500
Net Profit (Loss) $ 5,618 $ 431 $ 8,476 $ (3,762)
Basic Earnings (Loss) Per Common Share $ 0.32 $ 0.02 $ 0.49 $ (0.22)
Diluted Earnings (Loss) Per Common Share $ 0.32 $ 0.02 $ 0.49 $ (0.22)
Dividends Declared Per Common Share $ -- $ -- $ -- $ --
MBT FINANCIAL CORP.
CONSOLIDATED BALANCE SHEETS
December 31, 2012 December 31,
Dollars in thousands (Unaudited) 2011
Assets
Cash and Cash Equivalents
Cash and due from banks
Non-interest bearing $ 17,116 $ 18,201
Interest bearing 95,391 57,794
Total cash and cash equivalents 112,507 75,995
Securities - Held to Maturity 38,786 35,364
Securities - Available for Sale 393,767 354,899
Federal Home Loan Bank stock - at cost 10,605 10,605
Loans held for sale 1,520 1,035
Loans 627,249 679,475
Allowance for Loan Losses (17,299) (20,865)
Loans - Net 609,950 658,610
Accrued interest receivable and other assets 10,037 7,700
Other Real Estate Owned 14,262 16,650
Bank Owned Life Insurance 49,111 47,653
Premises and Equipment - Net 28,050 29,516
Total assets $ 1,268,595 $ 1,238,027
Liabilities
Deposits:
Non-interest bearing $ 183,016 $ 164,852
Interest-bearing 865,814 857,458
Total deposits 1,048,830 1,022,310
Federal Home Loan Bank advances 107,000 107,000
Repurchase agreements 15,000 20,000
Accrued interest payable and other liabilities 14,260 13,006
Total liabilities 1,185,090 1,162,316
Shareholders' Equity
Common stock (no par value) 2,397 2,099
Retained Earnings 81,211 72,735
Unearned Compensation (27) (87)
Accumulated other comprehensive income (loss) (76) 964
Total shareholders' equity 83,505 75,711
Total liabilities and shareholders' equity $ 1,268,595 $ 1,238,027

CONTACT: 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 John Betrus Director of Marketing (734) 240-2341 john.betrus@mbandt.com

Source:MBT Financial Corp.