MONROE, Mich., Jan. 12 /PRNewswire-FirstCall/ -- MBT Financial Corp., (NASDAQ:MBTF), the parent company of Monroe Bank & Trust, reported fourth quarter net income of $5.64 million, an increase of 3.6% from the $5.442 million reported for the fourth quarter of 2004. Diluted earnings per share increased 3.2% from $0.31 to $0.32. Net Interest Income for the quarter declined from $13.5 million to $12.7 million even though the average earning assets increased 4.7% as the fully taxable equivalent net interest margin declined from 3.85% to 3.45%.
Net Income for the year ending December 31, 2005 was $18.5 million, a decrease of 18.3% from the $22.6 million reported in 2004. The decrease in annual earnings was the result of credit related charges in the third quarter of 2005 as well as a decline in the net interest margin. Diluted earnings per share decreased 17.8% from $1.29 to $1.06.
H. Douglas Chaffin, President and CEO, commented, "Although the current interest rate environment continues to challenge our net interest income, non- interest income increased by 8.7%, net of securities gains. In addition, non- interest expenses declined by 9.8%. As a result our Efficiency Ratio improved from 47.47% in the fourth quarter of 2004 to 45.10% in the fourth quarter of 2005." Mr. Chaffin further commented on the Bank's continuing progress at improving asset quality. "Annualized Net Charge-offs decreased to 0.22% of average loans this quarter, compared to 0.87% in the fourth quarter of 2004 and 1.70% last quarter. Although non-performing assets (NPAs) only decreased $135,000 during the last quarter, NPAs decreased to 1.61% of total assets at December 31, 2005, down from 2.57% at December 31, 2004, and 1.65% at September 30, 2005. The Allowance for Loan Losses was $12.9 million, or 1.30% of total loans at December 31, 2005.
"The interest rate environment continued to challenge us in the fourth quarter. The net interest margin decreased compared to last quarter as the flattening of the yield curve worsened. We are pleased with the increase in non-interest income, our expense control, and the reduction of non-performing assets. We continue to seek ways to expand our service area geographically, as well as enhancing our services within existing markets. Recently we announced our intent to build a new branch office on the west side of Dundee and we installed an ATM in the new Global Engine Manufacturing Alliance plant in Dundee. Combined with our existing branch on the east side of Dundee, these additions will enhance our ability to serve the fastest growing community in our market." Total revenue, comprised of net interest income and non-interest income, was $16.3 million in the fourth quarter of 2005, a decrease of 5.2% compared to the same period of 2004. Mr. Chaffin noted, "Interest rate risk management is a crucial component of our strategy. Our cost of funds continued to increase faster than the yield on our assets, resulting in a decrease in our net interest margin. We do not anticipate a significant improvement in the interest rate environment in 2006, and our strategies with our balance sheet structure and pricing are designed to prevent further decline in the margin." Total assets were $1.64 billion at December 31, 2005, an increase of 5.6% from a year earlier. Loans grew $43.4 million, or 4.6% over the year, funded by deposit growth of $84.0 million, or 7.6% over the same period.
Shareholders' equity at December 31, 2005 was $152.1 million, a twelve- month decrease of 2.1%. Average equity to assets for the fourth quarter was 9.54% and total shares outstanding at quarter end were 17,197,116. Mr. Chaffin concluded, "Although we are not satisfied with the fourth quarter performance, we believe that our improvements in non-interest income and expenses will help us through this period of challenging economic and interest rate conditions." Conference Call MBT Financial Corp. will hold a conference call to discuss fourth quarter results on Friday, January 13, 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 http://www.mbandt.com/ . The call can also be accessed by calling (877) 407-8031. The event will be archived on the Company's web site and available for three months following the call.
About the Company MBT Financial Corp., 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, with more than $1.6 billion in assets. MBT is a full service bank offering personal and business accounts and complete credit options, and MBT's Wealth Management Group is one of the area's largest. With 26 offices, 38 ATMs, PhoneLink telephone banking and eLink online banking, MBT prides itself on an incomparable level of service and access for its customers. Visit MBT's web site at http://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, the financial and securities markets and the availability of and costs associated with sources of liquidity. The Corporation 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
2005 2005 2005
(dollars in thousands except per share
data) 4th Qtr 3rd Qtr 2nd Qtr EARNINGS
Net interest income $12,686 $13,113 $12,691
FTE Net interest income $13,243 $13,659 $13,253
Provision for loan and lease
losses $866 $4,100 $600
Non-interest income $3,656 $3,683 $3,664
Non-interest expense $7,856 $9,023 $8,210
Net income $5,640 $2,571 $5,369
Basic earnings per share $0.32 $0.15 $0.31
Diluted earnings per share $0.32 $0.15 $0.31
Average shares outstanding 17,222,943 17,282,699 17,337,452
Average diluted shares
outstanding 17,274,577 17,366,349 17,411,942 PERFORMANCE RATIOS
Return on average assets 1.38% 0.64% 1.37%
Return on average common equity 14.45% 6.45% 14.08% Base Margin 3.20% 3.32% 3.27%
FTE Adjustment 0.14% 0.14% 0.15%
Loan Fees 0.11% 0.15% 0.17%
FTE Net Interest Margin 3.45% 3.61% 3.59% Efficiency ratio 45.10% 43.09% 49.98%
Full-time equivalent employees 413 421 423 CAPITAL
Average equity to average assets 9.54% 9.88% 9.72%
Book value per share $8.84 $8.93 $9.09
Cash dividend per share $0.17 $0.17 $0.16 ASSET QUALITY
Loan Charge-Offs $1,423 $4,575 $698
Loan Recoveries $877 $465 $633
Net Charge-Offs $546 $4,110 $65 Allowance for loan and lease
losses $12,885 $12,565 $12,575 Nonaccrual Loans $16,212 $14,872 $27,990
Loans 90 days past due $101 $100 $48
Restructured loans $1,813 $2,731 $2,035
Total nonperforming loans $18,126 $17,703 $30,073
Other real estate owned $8,336 $8,894 $5,068
Nonperforming investment
securities $- $- $-
Total nonperforming assets $26,462 $26,597 $35,141 Net loan charge-offs to average
loans 0.22% 1.70% 0.03%
Allowance for losses to total
loans 1.30% 1.29% 1.30%
Nonperforming assets to Gross
Loans 2.67% 2.73% 3.63%
Nonperforming assets to total
assets 1.61% 1.65% 2.22%
Allowance to nonperforming assets 48.69% 47.24% 35.78% END OF PERIOD BALANCES
Loans and leases $989,311 $972,936 $966,935
Total earning assets $1,528,017 $1,507,371 $1,492,957
Total assets $1,638,836 $1,610,286 $1,583,433
Deposits $1,184,710 $1,145,411 $1,106,180
Interest Bearing Liabilities $1,298,094 $1,295,735 $1,260,731
Shareholders' equity $152,099 $154,219 $157,140
Total Shares Outstanding 17,197,116 17,272,923 17,285,950 AVERAGE BALANCES
Loans and leases $977,770 $969,498 $953,503
Total earning assets $1,523,391 $1,499,601 $1,479,798
Total assets $1,623,118 $1,600,591 $1,572,992
Deposits $1,163,964 $1,139,831 $1,104,715
Interest Bearing Liabilities $1,299,820 $1,279,137 $1,259,412
Shareholders' equity $154,857 $158,097 $152,934
MBT FINANCIAL CORP. CONSOLIDATED FINANCIAL HIGHLIGHTS - UNAUDITED Quarterly
2005 2004
(dollars in thousands except per share data) 1st Qtr 4th Qtr EARNINGS
Net interest income $12,622 $13,454
FTE Net interest income $13,185 $14,079
Provision for loan and lease
losses $600 $691
Non-interest income $3,446 $3,793
Non-interest expense $8,729 $8,707
Net income $4,879 $5,442
Basic earnings per share $0.28 $0.32
Diluted earnings per share $0.28 $0.31
Average shares outstanding 17,498,000 17,426,995
Average diluted shares
outstanding 17,593,705 17,562,768 PERFORMANCE RATIOS
Return on average assets 1.26% 1.40%
Return on average common equity 12.72% 13.98% Base Margin 3.30% 3.49%
FTE Adjustment 0.15% 0.17%
Loan Fees 0.17% 0.19%
FTE Net Interest Margin 3.62% 3.85% Efficiency ratio 51.76% 47.47%
Full-time equivalent employees 404 396 CAPITAL
Average equity to average
assets 9.92% 10.04%
Book value per share $8.79 $8.89
Cash dividend per share $0.16 $0.16 ASSET QUALITY
Loan Charge-Offs $2,644 $2,451
Loan Recoveries $559 $376
Net Charge-Offs $2,085 $2,075 Allowance for loan and lease
losses $12,040 $13,800 Nonaccrual Loans $27,625 $29,015
Loans 90 days past due $101 $230
Restructured loans $2,041 $3,715
Total nonperforming loans $29,767 $32,960
Other real estate owned $6,370 $6,958
Nonperforming investment
securities $- $-
Total nonperforming
assets $36,137 $39,918 Net loan charge-offs to average
loans 0.89% 0.87%
Allowance for losses to total
loans 1.28% 1.46%
Nonperforming assets to Gross
Loans 3.84% 4.22%
Nonperforming assets to total
assets 2.33% 2.57%
Allowance to nonperforming
assets 33.32% 34.57% END OF PERIOD BALANCES
Loans and leases $940,155 $945,881
Total earning assets $1,459,091 $1,465,322
Total assets $1,551,607 $1,552,279
Deposits $1,099,393 $1,100,711
Interest Bearing Liabilities $1,243,904 $1,237,742
Shareholders' equity $153,618 $155,346
Total Shares Outstanding 17,472,389 17,465,839 AVERAGE BALANCES
Loans and leases $949,978 $948,628
Total earning assets $1,475,802 $1,454,891
Total assets $1,567,950 $1,538,860
Deposits $1,117,572 $1,079,610
Interest Bearing Liabilities $1,253,664 $1,229,373
Shareholders' equity $155,580 $154,428 MBT FINANCIAL CORP. CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
Quarter Ended December 31,
Dollars in thousands (except per share data) 2005 2004 Interest Income
Interest and fees on loans $16,983 $15,259
Interest on investment securities-
Tax-exempt 1,272 1,355
Taxable 5,396 4,527
Interest on federal funds sold 29 8
Total interest income 23,680 21,149 Interest Expense
Interest on deposits 6,955 4,353
Interest on borrowed funds 4,039 3,342
Total interest expense 10,994 7,695 Net Interest Income 12,686 13,454
Provision For Loan Losses 866 691 Net Interest Income After
Provision For Loan Losses 11,820 12,763 Other Income
Income from wealth management
services 1,112 1,058
Service charges and other fees 1,502 1,403
Net gain (loss) on sales of
securities 22 451
Origination fees on mortgage loans
sold 129 118
Bank Owned Life Insurance income 276 244
Other 615 519
Total other income 3,656 3,793 Other Expenses
Salaries and employee benefits 4,333 4,690
Occupancy expense 813 837
Other 2,710 3,180
Total other expenses 7,856 8,707 Income Before Provision
For Income Taxes 7,620 7,849
Provision For Income Taxes 1,980 2,407
Net Income $5,640 $5,442
Basic Earnings Per Common Share $0.32 $0.32 Diluted Earnings Per Common Share $0.32 $0.31 Dividends Declared Per Common Share $0.17 $0.16 MBT FINANCIAL CORP. CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
Year Ended December 31,
Dollars in thousands (except per share data) 2005 2004 Interest Income
Interest and fees on loans $64,578 $57,660
Interest on investment securities-
Tax-exempt 5,036 5,613
Taxable 19,864 16,420
Interest on federal funds sold 217 10
Total interest income 89,695 79,703 Interest Expense
Interest on deposits 23,578 14,923
Interest on borrowed funds 15,005 12,075
Total interest expense 38,583 26,998 Net Interest Income 51,112 52,705
Provision For Loan Losses 6,166 2,491 Net Interest Income After
Provision For Loan Losses 44,946 50,214 Other Income
Income from wealth management
services 4,244 3,746
Service charges and other fees 5,833 5,476
Net gain on sales of securities 295 567
Origination fees on mortgage loans
sold 666 578
Bank Owned Life Insurance income 1,100 1,371
Other 2,311 2,038
Total other income 14,449 13,776 Other Expenses
Salaries and employee benefits 18,248 18,109
Occupancy expense 3,320 3,029
Other 12,250 11,478
Total other expenses 33,818 32,616 Income Before Provision
For Income Taxes 25,577 31,374
Provision For Income Taxes 7,118 8,775
Net Income $18,459 $22,599
Basic Earnings Per Common Share $1.06 $1.30 Diluted Earnings Per Common Share $1.06 $1.29 Dividends Declared Per Common Share $0.66 $0.62 MBT FINANCIAL CORP. CONSOLIDATED BALANCE SHEETS - UNAUDITED
December 31, December 31,
Dollars in thousands 2005 2004 Assets
Cash and Cash Equivalents
Cash and due from banks $32,330 $20,540
Federal funds sold 5,000 14,000
Total cash and cash equivalents 37,330 34,540 Securities - Held to Maturity 76,467 84,141
Securities - Available for Sale 444,021 408,353
Federal Home Loan Bank stock - at cost 13,221 12,947
Loans held for sale 434 778
Loans - Net 975,992 931,303
Accrued interest receivable and other
assets 28,488 22,895
Bank Owned Life Insurance 36,252 35,152
Premises and Equipment - Net 26,631 22,170
Total assets $1,638,836 $1,552,279 Liabilities
Deposits:
Non-interest bearing $178,116 $149,469
Interest-bearing 1,006,594 951,242
Total deposits 1,184,710 1,100,711 Federal Home Loan Bank advances 256,500 256,500
Federal funds purchased - -
Repurchase agreements 35,000 30,000
Interest payable and other liabilities 10,527 9,722
Total liabilities 1,486,737 1,396,933 Stockholders' Equity
Common stock (no par value) - -
Additional paid-in capital 14,417 19,806
Retained Earnings 142,685 135,647
Accumulated other comprehensive income (5,003) (107)
Total stockholders' equity 152,099 155,346
Total liabilities and
stockholders' equity $1,638,836 $1,552,279
DATASOURCE: MBT Financial Corp.
CONTACT: H. Douglas Chaffin, Chief Executive Officer, +1-734-384-8123, , John L. Skibski, Chief Financial Officer, +1-734-242-1879, , or Herbert J. Lock, Investor Relations, +1-734-242-2603, , all of MBT Financial Corp.
Web site: http://www.mbandt.com/
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