MONROE, Mich., April 23 /PRNewswire-FirstCall/ -- MBT Financial Corp., (NASDAQ:MBTF), the parent company of Monroe Bank & Trust, reported net income for the first quarter of 2007 of $3.7 million, a decrease of 21.6% from the first quarter of 2006. Diluted earnings per share decreased 21.4% from $0.28 in the first quarter of 2006 to $0.22. This is unchanged from the $3.7 million and $0.22 per share earned in the fourth quarter of 2006.
(Logo: http://www.newscom.com/cgi-bin/prnh/20070423/CLM146LOGO ) H. Douglas Chaffin, President and CEO, commented, "The interest rate environment and the economic conditions in southeast Michigan continue to impact our ability to grow our assets and earnings. We have chosen to focus our efforts on improving the quality of our balance sheet, which will position the bank for better results when the economic conditions improve." "While many banks are beginning to experience asset quality problems, our ongoing efforts to reduce our high level of problem assets are producing results. Although non performing assets (NPAs) increased slightly from $22.5 million to $22.8 million during the first quarter, total problem assets decreased from $62.3 million to $58.7 million. Net charge offs during the quarter were 0.18%, annualized, and we increased our allowance for loan losses from 1.38% of loans at December 31, 2006 to 1.42% at March 31, 2007. In addition, we have restricted our balance sheet growth to control our net interest margin, and we have been active in our capital management by purchasing our stock while the market values for financial stocks are at low levels. We also continue to provide value to our shareholders through our quarterly dividend, which is providing an annualized return in excess of 5.5% based on the price of our stock at the end of the first quarter." Mr. Chaffin further commented on the Company's earnings for the quarter. "Net Interest Income decreased $1.0 million compared to the first quarter of 2006 due to the lower net interest margin and smaller amount of average earning assets. The flat yield curve put considerable pressure on our net interest margin throughout 2006, and although the balance sheet management strategies we implemented in 2006 helped improve our margin during the first quarter of 2007, it is still lower than it was a year ago. As the yield curve returns to a more normal shape, we will be able to resume asset growth at a reasonable margin. Non interest income, excluding securities transactions, increased 5.6% compared to the first quarter of 2006 and non interest expenses, net of OREO transactions, increased 6.5%." Total assets decreased $19.1 million (1.2%) during the quarter to $1.55 billion at March 31, 2007. Total loans decreased $9.7 million (1.0%) to $989 million during the quarter and deposits decreased $19.8 million (1.8%). Shareholders' equity was $136.6 million, an increase of $0.5 million (0.4%) since year end.
Conference Call MBT Financial Corp. will hold a conference call to discuss first quarter results on Tuesday, April 24, 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. (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 full service community banks in Southeast Michigan, with more than $1.5 billion in assets, offering personal and business products and services, and complete credit options. MBT's Wealth Management Group is one of the area's largest trust departments with over $800 Million in assets under management. 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, 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
2007 2006 2006
(dollars in thousands except per share
data) 1st Qtr 4th Qtr 3rd Qtr EARNINGS
Net interest income $11,183 $11,165 $11,380
FTE Net interest income $11,587 $11,604 $11,803
Provision for loan and lease
losses $750 $1,175 $7,950
Non-interest income $3,763 $3,475 $3,723
Non-interest expense $9,112 $8,349 $9,418
Net income (loss) $3,703 $3,741 $(1,118)
Basic earnings (loss) per share $0.22 $0.22 $(0.07)
Diluted earnings (loss) per share $0.22 $0.22 $(0.07)
Average shares outstanding 16,686,983 16,815,634 16,872,826
Average diluted shares
outstanding 16,716,685 16,837,925 16,894,504 PERFORMANCE RATIOS
Return on average assets 0.97% 0.95% -0.28%
Return on average common equity 10.92% 10.51% -3.15% Base Margin 3.06% 2.93% 2.95%
FTE Adjustment 0.11% 0.12% 0.11%
Loan Fees 0.07% 0.09% 0.10%
FTE Net Interest Margin 3.24% 3.14% 3.16% Efficiency ratio 58.82% 54.82% 55.94%
Full-time equivalent employees 429 415 416 CAPITAL
Average equity to average assets 8.91% 9.02% 8.93%
Book value per share $8.21 $8.14 $8.30
Cash dividend per share $0.18 $0.18 $0.18 ASSET QUALITY
Loan Charge-Offs $1,088 $1,343 $12,407
Loan Recoveries $643 $390 $497
Net Charge-Offs $445 $953 $11,910 Allowance for loan and lease
losses $14,069 $13,764 $13,542 Nonaccrual Loans $19,527 $19,152 $13,334
Loans 90 days past due $61 $69 $99
Restructured loans $572 $888 $944
Total non performing loans $20,160 $20,109 $14,377
Other real estate owned $2,598 $2,432 $4,873
Total non performing assets $22,758 $22,541 $19,250
Problem Loans Still Performing $35,918 $39,719 $43,717
Total Problem Assets $58,676 $62,260 $62,967 Net loan charge-offs to average
loans 0.18% 0.38% 4.61%
Allowance for losses to total
loans 1.42% 1.38% 1.34%
Non performing assets to Gross
Loans 2.30% 2.26% 1.91%
Non performing assets to total
assets 1.47% 1.44% 1.21%
Allowance to non performing
assets 61.82% 61.06% 70.35% END OF PERIOD BALANCES
Loans and leases $989,322 $998,998 $1,008,914
Total earning assets $1,438,870 $1,451,109 $1,473,804
Total assets $1,547,709 $1,566,819 $1,588,374
Deposits $1,096,210 $1,116,057 $1,124,784
Interest Bearing Liabilities $1,251,379 $1,257,366 $1,284,862
Shareholders' equity $136,611 $136,062 $140,017
Total Shares Outstanding 16,644,463 16,713,960 16,873,671 AVERAGE BALANCES
Loans and leases $993,498 $1,001,560 $1,025,729
Total earning assets $1,446,247 $1,467,244 $1,480,840
Total assets $1,544,515 $1,565,703 $1,578,802
Deposits $1,099,850 $1,112,521 $1,113,447
Interest Bearing Liabilities $1,263,342 $1,280,144 $1,291,485
Shareholders' equity $137,573 $141,240 $140,954
Quarterly
2006 2006
(dollars in thousands except per
share data) 2nd Qtr 1st Qtr EARNINGS
Net interest income $11,922 $12,168
FTE Net interest income $12,369 $12,650
Provision for loan and lease
losses $6,675 $675
Non-interest income $(1,240) $3,584
Non-interest expense $10,052 $8,489
Net income (loss) $(3,576) $4,726
Basic earnings (loss) per share $(0.21) $0.28
Diluted earnings (loss) per
share $(0.21) $0.28
Average shares outstanding 16,969,365 17,111,913
Average diluted shares
outstanding 17,000,563 17,162,737 PERFORMANCE RATIOS
Return on average assets -0.90% 1.17%
Return on average common equity -9.61% 12.67% Base Margin 3.08% 3.13%
FTE Adjustment 0.12% 0.13%
Loan Fees 0.09% 0.09%
FTE Net Interest Margin 3.29% 3.35% Efficiency ratio 53.73% 52.22%
Full-time equivalent employees 418 416 CAPITAL
Average equity to average assets 9.34% 9.27%
Book value per share $8.23 $8.76
Cash dividend per share $0.17 $0.17 ASSET QUALITY
Loan Charge-Offs $3,880 $744
Loan Recoveries $504 $648
Net Charge-Offs $3,376 $96 Allowance for loan and lease
losses $17,502 $14,204 Nonaccrual Loans $22,132 $16,553
Loans 90 days past due $85 $91
Restructured loans $2,485 $1,847
Total non performing loans $24,702 $18,491
Other real estate owned $7,748 $8,395
Total non performing assets $32,450 $26,886
Problem Loans Still Performing $58,092 $65,697
Total Problem Assets $90,542 $92,583 Net loan charge-offs to average
loans 1.33% 0.04%
Allowance for losses to total
loans 1.71% 1.42%
Non performing assets to Gross
Loans 3.17% 2.68%
Non performing assets to total
assets 2.03% 1.66%
Allowance to non performing
assets 53.94% 52.83% END OF PERIOD BALANCES
Loans and leases $1,024,813 $1,003,757
Total earning assets $1,479,252 $1,509,020
Total assets $1,598,665 $1,615,099
Deposits $1,116,030 $1,147,385
Interest Bearing Liabilities $1,305,280 $1,294,008
Shareholders' equity $138,823 $149,392
Total Shares Outstanding 16,871,683 17,059,170 AVERAGE BALANCES
Loans and leases $1,017,097 $997,756
Total earning assets $1,506,062 $1,530,018
Total assets $1,597,107 $1,631,602
Deposits $1,115,672 $1,171,907
Interest Bearing Liabilities $1,298,117 $1,308,967
Shareholders' equity $149,195 $151,268 MBT FINANCIAL CORP. CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
Quarter Ended March 31,
Dollars in thousands (except per
share data) 2007 2006
Interest Income
Interest and fees on loans $17,761 $17,169
Interest on investment securities-
Tax-exempt 1,009 1,157
Taxable 4,915 5,348
Interest on federal funds sold 32 54
Total interest income 23,717 23,728 Interest Expense
Interest on deposits 7,955 7,497
Interest on borrowed funds 4,579 4,063
Total interest expense 12,534 11,560 Net Interest Income 11,183 12,168
Provision For Loan Losses 750 675 Net Interest Income After
Provision For Loan Losses 10,433 11,493 Other Income
Income from trust services 1,067 1,062
Service charges and other fees 1,525 1,464
Net gain (loss) on sales of
securities - 20
Origination fees on mortgage loans
sold 183 141
Bank Owned Life Insurance income 296 283
Other 692 614
Total other income 3,763 3,584 Other Expenses
Salaries and employee benefits 5,449 5,178
Occupancy expense 880 767
Equipment expense 845 798
Marketing expense 252 372
Professional fees 370 328
Net (gain) loss on other real estate
owned 18 (50)
Other 1,298 1,096
Total other expenses 9,112 8,489 Income (Loss) Before Income Taxes 5,084 6,588
Income Tax Expense (Benefit) 1,381 1,862
Net Income (Loss) $3,703 $4,726
Basic Earnings (Loss) Per Common
Share $0.22 $0.28 Diluted Earnings (Loss) Per Common
Share $0.22 $0.28 Dividends Declared Per Common Share $0.18 $0.17 MBT FINANCIAL CORP. CONSOLIDATED BALANCE SHEETS
March 31, March 31,
2007 December 31, 2006
Dollars in thousands (Unaudited) 2006 (Unaudited)
Assets
Cash and Cash Equivalents
Cash and due from banks $25,425 $27,903 $25,182
Federal funds sold - - -
Total cash and cash equivalents 25,425 27,903 25,182 Securities - Held to Maturity 53,203 64,938 67,431
Securities - Available for Sale 383,259 374,087 424,611
Federal Home Loan Bank stock - at
cost 13,086 13,086 13,221
Loans held for sale 908 721 377
Loans - Net 974,345 984,513 989,176
Accrued interest receivable and
other assets 23,870 27,961 30,416
Bank Owned Life Insurance 39,927 39,631 36,354
Premises and Equipment - Net 33,686 33,979 28,331
Total assets $1,547,709 $1,566,819 $1,615,099 Liabilities
Deposits:
Non-interest bearing $143,831 $158,688 $160,177
Interest-bearing 952,379 957,369 987,208
Total deposits 1,096,210 1,116,057 1,147,385 Federal Home Loan Bank advances 256,500 256,500 256,500
Federal funds purchased 2,500 3,500 15,300
Repurchase agreements 40,000 40,000 35,000
Interest payable and other
liabilities 15,888 14,700 11,522
Total liabilities 1,411,098 1,430,757 1,465,707 Shareholders' Equity
Common stock (no par value) - - -
Additional paid-in capital 6,209 6,979 12,134
Retained Earnings 134,868 134,162 144,030
Accumulated other comprehensive
income (4,466) (5,079) (6,772)
Total shareholders' equity 136,611 136,062 149,392
Total liabilities and
shareholders' equity $1,547,709 $1,566,819 $1,615,099
http://www.newscom.com/cgi-bin/prnh/20070423/CLM146LOGO http://photoarchive.ap.org/ 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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