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MBT Financial Corp. Announces Preliminary Second Quarter 2019 Highlights and Dividend Increase

MONROE, Mich., July 25, 2019 (GLOBE NEWSWIRE) -- MBT Financial Corp. (MBTF), the parent company of Monroe Bank & Trust, reported a preliminary second quarter 2019 profit of $6,337,000, or $0.27 per share (basic and diluted). This represents a 28.1% increase compared to the $4,945,000 ($0.22 per share, basic, and $0.21 per share, diluted) recorded in the second quarter of 2018.

The company also announced that it will pay a quarterly dividend of $0.11 per common share on August 15, 2019 to shareholders of record as of August 8, 2019. This is an increase of $0.01 per share compared to the regular dividend paid in the same quarter last year.

The Net Interest Income for the second quarter of 2019 increased $1,024,000, or 9.5% compared to the second quarter of 2018 as the Net Interest Margin improved from 3.65% to 3.87%. Non-interest income in the second quarter of 2019 included a gain of $517,000 from a Bank Owned Life Insurance claim. Excluding the BOLI claim in the second quarter of 2019 and gains on the sales of Other Real Estate Owned in the second quarter of 2018, non-interest income increased 1.4%, from $3,886,000 to $3,942,000. Non-interest expense decreased $645,000, or 7.0%, in part because we have begun to achieve some of the cost reductions expected due to our upcoming merger with First Merchants Bank. Excluding the BOLI claim, net income for the second quarter of 2019 was $5,820,000, or $0.25 per share, basic and diluted.

Total assets of the company decreased $10.3 million, or 0.8%, compared to December 31, 2018, to $1.327 billion. Capital increased $7.8 million during the first half of 2019, total loans increased $0.3 million, and total deposits decreased $11.9 million, or 1.0%. The loan pipeline remains strong at $77 million, and the amount of unfunded loan commitments increased from $131 million at the end of 2018 to $139 million at the end of the second quarter of 2019.

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. The merger was announced in October, 2018 and is expected to close during the third quarter of 2019. 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.

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 expected to close in the third quarter of 2019, so the Company will not be providing its typical detailed earnings announcement and investor conference call. First Merchants announced their second quarter results and hosted a conference call earlier today. For information about First Merchants and the merger, and to access a replay of their call, please see the Investor Relations link on www.firstmerchants.com.

For more information about Monroe Bank & Trust, visit www.monroe.bank or contact:
     
Doug Chaffin      John Skibski 
President & CEO   Executive Vice President & CFO
(734) 384-8123    (734) 242-1879
doug.chaffin@monroe.bank    john.skibski@monroe.bank 
     

       

MBT FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
                     
        Quarter Ended June 30,   Six Months Ended June 30,
Dollars in thousands (except per share data)   2019     2018       2019       2018  
Interest Income                            
Interest and fees on loans $   9,714   $   8,736     $   19,285     $   16,953  
Interest on investment securities-                            
  Tax-exempt     171       443         467         847  
  Taxable     380       2,087         1,554         4,297  
Interest on balances due from banks     2,213       58         3,422         183  
      Total interest income     12,478       11,324         24,728         22,280  
                                   
Interest Expense                            
Interest on deposits     557       400         1,125         814  
Interest on borrowed funds     64       91         128         97  
      Total interest expense     621       491         1,253         911  
                                   
Net Interest Income     11,857       10,833         23,475         21,369  
Provision For (Recovery Of) Loan Losses     -        -          -          (100 )
                                   
Net Interest Income After                            
Provision For (Recovery Of) Loan Losses     11,857       10,833         23,475         21,469  
                                   
Other Income                            
Income from wealth management services     1,197       1,178         2,358         2,363  
Service charges and other fees     855       955         1,677         1,901  
Debit Card income     799       786         1,500         1,506  
Net gain on sales of securities     -        (1 )       (11,646 )       (102 )
Net gain (loss) on other real estate owned     4       517         13         536  
Origination fees on mortgage loans sold     119       92         188         154  
Bank Owned Life Insurance income     851       349         1,189         702  
Other       634       527         1,293         1,127  
      Total other income     4,459       4,403         (3,428 )       8,187  
                                   
Other Expenses                            
Salaries and employee benefits     5,305       5,371         11,369         11,333  
Occupancy expense     654       620         1,383         1,341  
Equipment expense     896       874         1,809         1,667  
Marketing expense     189       467         481         844  
Professional fees     459       592         1,302         1,186  
EFT/ATM expense     297       288         588         547  
Other real estate owned expense     4       21         26         36  
FDIC deposit insurance assessment     91       92         180         199  
Bonding and other insurance expense     73       137         502         269  
Telephone expense     78       74         158         149  
Other       495       650         1,053         1,407  
      Total other expenses     8,541       9,186         18,851         18,978  
                                   
Profit Before Income Taxes     7,775       6,050         1,196         10,678  
Income Tax Expense     1,438       1,105         -          1,831  
Net Profit $   6,337   $   4,945     $   1,196     $   8,847  
                                   
Basic Earnings Per Common Share $   0.27   $   0.22     $   0.05     $   0.39  
                                   
Diluted Earnings Per Common Share $   0.27   $   0.21     $   0.05     $   0.38  
                                   
Dividends Declared Per Common Share $   0.10   $   0.07     $   0.20     $   0.73  
                     

 

MBT FINANCIAL CORP.
CONSOLIDATED BALANCE SHEETS
           
           
      (Unaudited)    
Dollars in thousands June 30, 2019   December 31, 2018
Assets              
Cash and Cash Equivalents              
  Cash and due from banks              
    Non-interest bearing $ 16,934     $ 17,058  
    Interest bearing   321,684       34,784  
    Total cash and cash equivalents   338,618       51,842  
                   
Interest Bearing Time Deposits in Other Banks   100       10,796  
Securities - Available for Sale   116,440       401,613  
Equity Securities   7,478       7,415  
Loans held for sale   -       488  
                   
Loans   769,413       768,660  
Allowance for Loan Losses   (7,623 )     (7,771 )
Loans - Net   761,790       760,889  
                   
Accrued interest receivable and other assets   15,445       16,743  
Other Real Estate Owned   27       692  
Bank Owned Life Insurance   59,313       59,563  
Premises and Equipment - Net   27,336       26,850  
    Total assets $ 1,326,547     $ 1,336,891  
                   
Liabilities              
Deposits:              
  Non-interest bearing $ 309,309     $ 297,704  
  Interest-bearing   861,691       885,206  
    Total deposits   1,171,000       1,182,910  
                   
Federal Home Loan Bank advances   10,000       10,000  
Accrued interest payable and other liabilities   10,110       16,314  
    Total liabilities   1,191,110       1,209,224  
                   
Shareholders' Equity              
Common stock (no par value)   23,658       23,453  
Retained Earnings   110,510       113,921  
Accumulated other comprehensive loss   1,269       (9,707 )
    Total shareholders' equity   135,437       127,667  
    Total liabilities and shareholders' equity $ 1,326,547     $ 1,336,891