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| 8-K - MBT FINANCIAL CORP | v171826_8k.htm |
EXHIBIT
99
FOR
IMMEDIATE RELEASE – January 20, 2010
MBT
Financial Corp. Anticipates Large Fourth Quarter Loss
Monroe, Mich., January 20, 2010
– MBT Financial Corp. (NASDAQ: MBTF) announced today that it anticipates
that it will report a large loss when it releases its fourth quarter 2009
results after the close of the market on Thursday, January 28, 2010. The size of
the loss is due to a number of factors, including an increase in the Allowance
for Loan Losses, an additional impairment of certain investment securities, and
the establishment of a valuation allowance for its deferred tax
assets.
H.
Douglas Chaffin, President and Chief Executive Officer commented, “The ongoing
economic challenges in southeast Michigan, including a decline in real estate
values that is unprecedented in its severity, led us to adjust our methodology
for estimated potential losses in our loan portfolio. Previously, we reserved
for potential losses based on the historical average of actual losses over a
multi year period. During the third quarter of 2009, we adjusted the weighting
of the historical losses to put slightly more emphasis on the most recent time
period in order to more accurately reflect the current difficult economic
environment. We are now further tightening the historical time period that we
use when calculating our general estimated loss allocations. Under this revised
method we are reserving for potential loan losses based on our loss history for
the most recent eight calendar quarters. Because our loan losses have occurred
most heavily in the more recent time period, we expect this adjustment to our
methodology to require an increase in our Allowance for Loan Losses of $5.5
million dollars in the fourth quarter.
“In
addition, during the fourth quarter our portfolio of pooled trust preferred
investment securities experienced additional Other Than Temporary Impairment
(OTTI). Net of other gains on sales of securities, we expect to record a loss of
$4 million on our investment portfolio in the fourth quarter.”
Mr.
Chaffin concluded, “The increase in the Allowance for Loan Losses, the increase
in the OTTI charge, and numerous write downs of Other Real Estate assets have
resulted in a significant increase in the amount of our Deferred Tax Assets. We
are in the process of analyzing these assets, and we anticipate that we will
need to establish a valuation allowance. We expect that establishment of the
valuation allowance will result in a non cash charge of approximately $13
million in the fourth quarter.
“Although
we anticipate a large loss for the fourth quarter, we believe that we will
continue to meet the requirements to be considered ‘well capitalized’ according
to the applicable regulatory capital guidelines.”
The full
earnings report will be released after the close of the market on Thursday,
January 28, 2010. It will also be available at that time on the company’s
website, www.mbandt.com.
The company will also host an investor conference call to review the results on
Friday, January 29, 2010 at 10 a.m. Eastern. Participants are asked to call
(800) 860-2442 at least five minutes prior to the call. The call will also be
web cast on the company’s website, www.mbandt.com.
To access the webcast from the MBT home page select “Investor Relations” and
“Corporate Profile” for the link to the web cast. A replay will also be
available two hours after the conclusion of the call at (877) 344-7529,
Conference #436786. The replay will be available until February 8, 2010 at 9
a.m. Eastern. The call will be archived on the company’s website for twelve
months following the call.
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 $1.4
billion in assets. 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 25 offices, 41 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.