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MBT Financial Corp. Announces Dividend and Preliminary Fourth Quarter 2018 Highlights

MONROE, Mich., Jan. 28, 2019 (GLOBE NEWSWIRE) -- MBT Financial Corp. (MBTF), the parent company of Monroe Bank & Trust, announced that it will pay a quarterly dividend of $0.10 per common share on February 14, 2019 to shareholders of record as of February 7, 2019. This is an increase of $0.04 per share compared to the regular dividend paid in the same quarter last year.

On October 10, 2018, the Company announced that it signed a definitive agreement to merge with First Merchants Corporation (FRME), headquartered in Muncie, Indiana. The merger is on track to close in the first quarter of 2019, so the Company will not be providing its typical detailed earnings announcement and investor conference call. 

The preliminary net profit was $3,878,000 ($0.17 per share, basic and diluted), in the fourth quarter of 2018, compared to a loss of $144,000 ($0.01 per share, basic), in the fourth quarter of 2017. The preliminary full year profit was $17,699,000 ($0.77 per share, basic and diluted), compared to $10,609,000 ($0.46 per share, basic and diluted) for 2017. Fourth quarter profits in 2018 were negatively affected by merger related costs and fourth quarter profits in 2017 were negatively affected by tax adjustments due to the Tax Cuts and Jobs Act.  Merger related expenses in the fourth quarter of 2018 accounted for $0.04 per share, basic and diluted. 

The Net Interest Income for the fourth quarter of 2018 increased $1,080,000, or 10.4%. The Company did not record a provision for loan losses this quarter, compared to a negative provision of $500,000 recorded in the fourth quarter of 2017. Non-interest income for the fourth quarter of 2018 decreased $344,000, or 9.4% compared to the fourth quarter of 2017 primarily due to income received from a Bank Owned Life Insurance claim in 2017, and non-interest expense increased $786,000, or 8.6% primarily due to the aforementioned merger related expenses.

Total assets of the company decreased $10.5 million, or 0.8%, compared to December 31, 2017, to $1.34 billion. Capital decreased $5.0 million during 2018 because the payment of the special and regular dividends exceeded the net income and because the AOCL increased due to an increase in the unrealized loss on Available For Sale investment securities. Total loans increased $73.8 million, or 10.6% in 2018 while total deposits decreased $15.3 million, or 1.3%. This improved the Loan to Deposit ratio from 58.0% a year ago to 65.0% at the end of 2018.

H. Douglas Chaffin, President and CEO, commented, “We are making good progress toward closing our previously announced merger with First Merchants Corporation headquartered in Muncie, Indiana. This merger will provide tremendous benefits to our customers, shareholders and communities, and we look forward to continuing the legacy of exceptional customer service, local responsiveness, and strong community engagement that has defined Monroe Bank and Trust for 160 years.”

About the Company:
MBT Financial Corp. (MBTF), a bank holding company headquartered in Monroe, Michigan, is the parent company of Monroe Bank & Trust. Founded in 1858, Monroe Bank & Trust helps customers’ remarkable stories unfold through an uncommon, optimistic culture. As one of the largest community banks in Southeast Michigan, with over $1.3 billion in assets, this full-service bank offers a complete range of business and personal accounts, mobile and online banking, offices and ATMs across Monroe and Wayne Counties, credit and mortgage options, investment and retirement services and award-winning community outreach. The bank believes in its customers, helping them with everything from day-to-day needs to long-term goals, and is ranked fourth among all Michigan banks for total trust assets.  The bank believes in its communities, supporting over 300 organizations with sponsorships and also more than 8,000 employee volunteer hours through the Monroe Bank & Trust ENLIST Volunteerism program. The bank believes in the power of knowledge, helping thousands of students and adults thrive through the Monroe Bank & Trust Financial Education program.  Monroe Bank & Trust is proud to be a trusted partner to communities and clients, and an employer of choice.  We are Monroe Bank & Trust, and we believe in the story of you.

For more information about Monroe Bank & Trust, visit www.monroe.bank.
Or, contact:
Julian Broggio
SVP, Director of Marketing
(734) 240-2341
julian.broggio@monroe.bank


MBT FINANCIAL CORP.  
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED  
                       
        Quarter Ended December 31,   Year Ended December 31,  
Dollars in thousands (except per share data)   2018       2017       2018       2017    
Interest Income                
Interest and fees on loans $   9,492     $   8,132     $   35,609     $   31,300    
Interest on investment securities-                
  Tax-exempt     408         356         1,670         1,299    
  Taxable     2,084         2,200         8,501         8,707    
Interest on balances due from banks     138         102         514         494    
      Total interest income     12,122         10,790         46,294         41,800    
                       
Interest Expense                
Interest on deposits     534         414         1,804         1,731    
Interest on borrowed funds     135         3         451         6    
      Total interest expense     669         417         2,255         1,737    
                       
Net Interest Income     11,453         10,373         44,039         40,063    
Provision For (Recovery Of) Loan Losses     -          (500 )       (100 )       (700 )  
                       
Net Interest Income After                
Provision For (Recovery Of) Loan Losses     11,453         10,873         44,139         40,763    
                       
Other Income                
Income from wealth management services     1,172         1,187         4,728         5,017    
Service charges and other fees     940         1,050         3,834         4,186    
Debit Card income     799         730         3,068         2,877    
Net gain on sales of securities     (622 )       (773 )       (815 )       (546 )  
Net gain (loss) on other real estate owned     7         67         543         (22 )  
Origination fees on mortgage loans sold     108         68         414         329    
Bank Owned Life Insurance income     359         848         1,411         1,978    
Other       550         480         2,357         2,063    
      Total other income     3,313         3,657         15,540         15,882    
                       
Other Expenses                
Salaries and employee benefits     5,630         5,380         22,344         21,400    
Occupancy expense     672         701         2,673         2,825    
Equipment expense     881         855         3,429         3,126    
Marketing expense     356         361         1,589         1,322    
Professional fees     1,149         560         2,885         2,339    
EFT/ATM expense     316         259         1,160         1,022    
Other real estate owned expense     39         22         100         117    
FDIC deposit insurance assessment     95         107         391         428    
Bonding and other insurance expense     131         119         529         486    
Telephone expense     91         83         324         385    
Other       541         668         2,611         2,685    
      Total other expenses     9,901         9,115         38,035         36,135    
                       
Profit Before Income Taxes     4,865         5,415         21,644         20,510    
Income Tax Expense     987         5,559         3,945         9,901    
Net Profit $   3,878     $   (144 )   $   17,699     $   10,609    
                       
Basic Earnings Per Common Share $   0.17     $   (0.01 )   $   0.77     $   0.46    
                       
Diluted Earnings Per Common Share $   0.17     $   (0.01 )   $   0.77     $   0.46    
                       
Dividends Declared Per Common Share $   0.10     $   0.06     $   0.93     $   0.92    
                       

 

MBT FINANCIAL CORP.
CONSOLIDATED BALANCE SHEETS
             
             
        (Unaudited)    
Dollars in thousands December 31, 2018   December 31, 2017
Assets        
Cash and Cash Equivalents      
  Cash and due from banks      
    Non-interest bearing $   17,058     $   18,233  
    Interest bearing     34,784         34,777  
    Total cash and cash equivalents     51,842         53,010  
             
Interest Bearing Time Deposits in Other Banks     10,796         15,196  
Securities - Held to Maturity     -          37,163  
Securities - Available for Sale     401,613         442,816  
Equity Securities     7,415         4,148  
Loans held for sale     488         346  
             
Loans       768,660         694,979  
Allowance for Loan Losses     (7,771 )       (7,666 )
Loans - Net     760,889         687,313  
             
Accrued interest receivable and other assets     16,743         20,463  
Other Real Estate Owned     692         1,412  
Bank Owned Life Insurance     59,563         58,153  
Premises and Equipment - Net     26,850         27,400  
    Total assets $   1,336,891     $   1,347,420  
             
Liabilities      
Deposits:      
  Non-interest bearing $   297,704     $   299,838  
  Interest-bearing     885,206         898,326  
    Total deposits     1,182,910         1,198,164  
             
Federal Home Loan Bank advances     10,000         -   
Accrued interest payable and other liabilities     16,314         16,598  
    Total liabilities     1,209,224         1,214,762  
             
Shareholders' Equity      
Common stock (no par value)     23,453         22,840  
Retained Earnings     113,921         117,524  
Unearned Compensation     -          -   
Accumulated other comprehensive loss     (9,707 )       (7,706 )
    Total shareholders' equity     127,667         132,658  
    Total liabilities and shareholders' equity $   1,336,891     $   1,347,420