Attached files
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| 8-K - CURRENT REPORT - MBT FINANCIAL CORP | v229675_8-k.htm |
EXHIBIT 99
MBT Financial Corp. Announces Second Quarter 2011 Results
MONROE, Mich., July 25, 2011 – MBT Financial Corp., (Nasdaq: MBTF), the parent company of Monroe Bank & Trust, reported a net loss of $783,000, or $0.05 per share, in the second quarter of 2011, compared to the loss of $4.0 million, or $0.23 per share in the first quarter of 2011. The loss decreased as improving asset quality resulted in lower credit costs. Compared to the second quarter of 2010, the loss increased from $372,000, or $0.02 per share.
The Net Interest Income for the second quarter of 2011 was $8.6 million, a decrease of $0.6 million, or 6.6% compared to the same period in 2010. The net interest margin decreased from 3.13% in the second quarter of 2010 to 3.06% in the second quarter of 2011. The net interest income decreased due to the decrease in the margin and because the average earning assets decreased $60.3 million for the past twelve months, or 5.0%. The decrease in average earning assets included a decrease of $93.3 million, or 11.4%, in average loans, as slowly improving economic conditions continue to have a negative impact on loan demand and growth.
The provision for loan losses decreased from $3.75 million last year to $2.85 million in the second quarter of 2011 due to a decrease in the net charge offs from $3.8 million to $3.6 million, and due to a reduction in the allowance for loan losses to reflect recent historical loss rates and the decrease in the size of the loan portfolio.
Non interest income, excluding securities gains, decreased 4.9% from $4.0 million in the second quarter of 2010 to $3.8 million in the second quarter of 2011. Declines in wealth management income, origination fees from mortgage loans sold and deposit service charges were the primary causes of this decrease. Total non interest expenses decreased $2.3 million compared to the second quarter of 2010 due to charges to prepay debt in 2010. Excluding these one time costs, non interest expenses increased $232,000, or 2.3%. The increase was mainly due to higher deposit insurance premiums paid to the FDIC.
Total assets of the company decreased $26.9 million compared to December 31, 2010, mainly due to the normal seasonal decrease in deposit funding and a planned decrease in non deposit funding. The $13.6 million decrease in deposits included $6.7 million in brokered certificate of deposit maturities. The Company also reduced its repurchase agreement funding by $10.0 million and its Federal Home Loan Bank borrowings $3.5 million since the beginning of the year. Capital decreased $1.0 million since year end, but with the decrease in assets, the ratio of equity to assets increased from 5.88% at December 31, 2010 to 5.92% at June 30, 2011. The bank remains adequately capitalized as measured by applicable regulatory standards. The company’s already strong liquidity position improved during the quarter, with cash and investments increasing from 31.7% of assets at the end of 2010 to 33.8% at the end of the second quarter of 2011.
H. Douglas Chaffin, President and CEO, commented, “Our results for the second quarter of 2011 were significantly better than the first quarter because the slowly recovering economic conditions are beginning to lead to improvements in our asset quality and earnings. Loan demand is still slow, and the decrease in the loan portfolio caused a slight decrease in the net interest margin. We continue to have a solid deposit base, a very liquid balance sheet, and adequate capital, so when the eventual increase in loan demand occurs, we will be well positioned to participate in the growth.”
Mr. Chaffin concluded, “Local economic indicators have shown improvement recently, and we remain optimistic. Improvements in employment are beginning to be reflected in improvements in past dues. We will continue to focus our efforts on improving asset quality, maintaining liquidity, strengthening capital, seeking new sources of revenue, and controlling expenses. Our shareholders approved an increase in the number of common shares authorized at our Annual Meeting of Shareholders, and our board is currently developing plans for a common stock offering. We still have much work ahead of us given our current environment, but we remain confident in our ability to maintain our position as the premier independent provider of financial services in the communities we serve.”
Conference Call
MBT Financial Corp. will hold a conference call to discuss the second quarter results on Tuesday, July 26, 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 www.mbandt.com. The call can also be accessed in the United States by calling toll free (877) 317-6789. The toll free number for callers in Canada is (866) 605-3852 and international callers can access the call at (412) 317-6789. The event will be archived on the Company’s web site and available for twelve 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 community banks in Southeast Michigan. 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.
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.
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MBT FINANCIAL CORP.
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CONSOLIDATED FINANCIAL HIGHLIGHTS - UNAUDITED
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Quarterly
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Year to Date
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2011
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2011
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2010
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2010
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2010
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(dollars in thousands except per share data)
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2nd Qtr
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1st Qtr
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4th Qtr
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3rd Qtr
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2nd Qtr
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2011
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2010
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EARNINGS
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Net interest income
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$ | 8,578 | $ | 8,769 | $ | 8,814 | $ | 9,421 | $ | 9,188 | $ | 17,347 | $ | 18,593 | ||||||||||||||
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FTE Net interest income
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$ | 8,744 | $ | 8,942 | $ | 8,985 | $ | 9,603 | $ | 9,389 | $ | 17,686 | $ | 19,066 | ||||||||||||||
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Provision for loan and lease losses
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$ | 2,850 | $ | 5,750 | $ | 7,086 | $ | 7,464 | $ | 3,750 | $ | 8,600 | $ | 5,950 | ||||||||||||||
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Non-interest income
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$ | 3,858 | $ | 3,663 | $ | 4,195 | $ | 4,381 | $ | 6,819 | $ | 7,521 | $ | 10,860 | ||||||||||||||
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Non-interest expense
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$ | 10,369 | $ | 10,724 | $ | 10,277 | $ | 10,676 | $ | 12,629 | $ | 21,093 | $ | 23,527 | ||||||||||||||
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Net income (loss)
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$ | (783 | ) | $ | (4,042 | ) | $ | (7,537 | ) | $ | (4,338 | ) | $ | (372 | ) | $ | (4,825 | ) | $ | (24 | ) | |||||||
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Basic earnings (loss) per share
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$ | (0.05 | ) | $ | (0.23 | ) | $ | (0.44 | ) | $ | (0.27 | ) | $ | (0.02 | ) | $ | (0.28 | ) | $ | - | ||||||||
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Diluted earnings (loss) per share
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$ | (0.05 | ) | $ | (0.23 | ) | $ | (0.44 | ) | $ | (0.27 | ) | $ | (0.02 | ) | $ | (0.28 | ) | $ | - | ||||||||
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Average shares outstanding
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17,265,075 | 17,256,472 | 17,214,768 | 16,329,549 | 16,225,327 | 17,260,797 | 16,220,777 | |||||||||||||||||||||
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Average diluted shares outstanding
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17,265,075 | 17,256,472 | 17,214,768 | 16,329,549 | 16,225,327 | 17,260,797 | 16,220,777 | |||||||||||||||||||||
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PERFORMANCE RATIOS
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Return on average assets
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-0.25 | % | -1.29 | % | -2.39 | % | -1.37 | % | -0.11 | % | -0.77 | % | 0.00 | % | ||||||||||||||
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Return on average common equity
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-4.46 | % | -22.04 | % | -35.55 | % | -19.74 | % | -1.77 | % | -13.44 | % | -0.06 | % | ||||||||||||||
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Base Margin
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2.97 | % | 3.02 | % | 3.03 | % | 3.21 | % | 3.03 | % | 3.00 | % | 3.02 | % | ||||||||||||||
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FTE Adjustment
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0.06 | % | 0.06 | % | 0.06 | % | 0.06 | % | 0.07 | % | 0.06 | % | 0.08 | % | ||||||||||||||
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Loan Fees
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0.03 | % | 0.03 | % | 0.03 | % | 0.05 | % | 0.03 | % | 0.03 | % | 0.03 | % | ||||||||||||||
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FTE Net Interest Margin
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3.06 | % | 3.11 | % | 3.12 | % | 3.32 | % | 3.13 | % | 3.09 | % | 3.13 | % | ||||||||||||||
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Efficiency ratio
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70.89 | % | 73.07 | % | 67.61 | % | 65.36 | % | 63.84 | % | 71.98 | % | 65.79 | % | ||||||||||||||
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Full-time equivalent employees
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349 | 344 | 342 | 350 | 356 | 347 | 354 | |||||||||||||||||||||
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CAPITAL
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Average equity to average assets
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5.64 | % | 5.85 | % | 6.73 | % | 6.94 | % | 6.44 | % | 5.75 | % | 6.26 | % | ||||||||||||||
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Book value per share
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$ | 4.23 | $ | 4.08 | $ | 4.29 | $ | 4.94 | $ | 5.31 | $ | 4.23 | $ | 5.31 | ||||||||||||||
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Cash dividend per share
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$ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||
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ASSET QUALITY
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Loan Charge-Offs
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$ | 3,970 | $ | 4,064 | $ | 7,217 | $ | 11,010 | $ | 3,967 | $ | 8,034 | $ | 6,329 | ||||||||||||||
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Loan Recoveries
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$ | 322 | $ | 518 | $ | 607 | $ | 266 | $ | 131 | $ | 840 | $ | 342 | ||||||||||||||
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Net Charge-Offs
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$ | 3,648 | $ | 3,546 | $ | 6,610 | $ | 10,744 | $ | 3,836 | $ | 7,194 | $ | 5,987 | ||||||||||||||
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Allowance for loan and lease losses
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$ | 22,629 | $ | 23,427 | $ | 21,223 | $ | 20,746 | $ | 24,026 | $ | 22,629 | $ | 24,026 | ||||||||||||||
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Nonaccrual Loans
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$ | 66,433 | $ | 65,597 | $ | 67,581 | $ | 64,192 | $ | 65,066 | $ | 66,433 | $ | 65,066 | ||||||||||||||
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Loans 90 days past due
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$ | 240 | $ | 364 | $ | 4 | $ | 117 | $ | 166 | $ | 240 | $ | 166 | ||||||||||||||
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Restructured loans
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$ | 11,595 | $ | 14,775 | $ | 14,098 | $ | 15,290 | $ | 25,058 | $ | 11,595 | $ | 25,058 | ||||||||||||||
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Total non performing loans
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$ | 78,268 | $ | 80,736 | $ | 81,683 | $ | 79,599 | $ | 90,290 | $ | 78,268 | $ | 90,290 | ||||||||||||||
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Other real estate owned & other assets
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$ | 21,365 | $ | 22,640 | $ | 19,815 | $ | 19,042 | $ | 18,387 | $ | 21,365 | $ | 18,387 | ||||||||||||||
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Nonaccrual Investment Securities
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$ | 2,810 | $ | 2,694 | $ | 2,568 | $ | 1,625 | $ | 1,685 | $ | 2,810 | $ | 1,685 | ||||||||||||||
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Total non performing assets
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$ | 102,443 | $ | 106,070 | $ | 104,066 | $ | 100,266 | $ | 110,362 | $ | 102,443 | $ | 110,362 | ||||||||||||||
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Problem Loans Still Performing
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$ | 43,220 | $ | 53,598 | $ | 53,726 | $ | 49,589 | $ | 41,693 | $ | 43,220 | $ | 41,693 | ||||||||||||||
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Total Problem Assets
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$ | 145,663 | $ | 159,668 | $ | 157,792 | $ | 149,855 | $ | 152,055 | $ | 145,663 | $ | 152,055 | ||||||||||||||
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Net loan charge-offs to average loans
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2.02 | % | 1.93 | % | 3.39 | % | 5.32 | % | 1.88 | % | 1.98 | % | 1.46 | % | ||||||||||||||
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Allowance for losses to total loans
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3.15 | % | 3.21 | % | 2.82 | % | 2.64 | % | 2.97 | % | 3.15 | % | 2.97 | % | ||||||||||||||
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Non performing loans to gross loans
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10.91 | % | 11.07 | % | 10.84 | % | 10.13 | % | 11.18 | % | 10.91 | % | 11.18 | % | ||||||||||||||
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Non performing assets to total assets
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8.31 | % | 8.35 | % | 8.26 | % | 7.96 | % | 8.73 | % | 8.31 | % | 8.73 | % | ||||||||||||||
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Allowance to non performing loans
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28.91 | % | 29.02 | % | 25.98 | % | 26.06 | % | 26.61 | % | 28.91 | % | 26.61 | % | ||||||||||||||
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END OF PERIOD BALANCES
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Loans and leases
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$ | 717,488 | $ | 729,503 | $ | 753,860 | $ | 786,054 | $ | 807,788 | $ | 717,488 | $ | 807,788 | ||||||||||||||
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Total earning assets
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$ | 1,126,022 | $ | 1,163,939 | $ | 1,151,371 | $ | 1,143,825 | $ | 1,144,120 | $ | 1,126,022 | $ | 1,144,120 | ||||||||||||||
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Total assets
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$ | 1,232,438 | $ | 1,269,615 | $ | 1,259,377 | $ | 1,259,876 | $ | 1,263,678 | $ | 1,232,438 | $ | 1,263,678 | ||||||||||||||
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Deposits
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$ | 1,018,304 | $ | 1,045,141 | $ | 1,031,893 | $ | 1,022,460 | $ | 1,023,657 | $ | 1,018,304 | $ | 1,023,657 | ||||||||||||||
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Interest Bearing Liabilities
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$ | 996,239 | $ | 1,041,039 | $ | 1,027,320 | $ | 1,022,398 | $ | 1,022,293 | $ | 996,239 | $ | 1,022,293 | ||||||||||||||
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Shareholders' equity
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$ | 72,975 | $ | 70,415 | $ | 73,998 | $ | 84,079 | $ | 86,201 | $ | 72,975 | $ | 86,201 | ||||||||||||||
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Total Shares Outstanding
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17,269,225 | 17,260,748 | 17,252,329 | 17,030,844 | 16,228,029 | 17,269,225 | 16,228,029 | |||||||||||||||||||||
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AVERAGE BALANCES
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Loans and leases
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$ | 723,146 | $ | 744,579 | $ | 773,269 | $ | 801,240 | $ | 816,487 | $ | 733,804 | $ | 826,252 | ||||||||||||||
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Total earning assets
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$ | 1,145,448 | $ | 1,163,506 | $ | 1,141,829 | $ | 1,148,796 | $ | 1,205,711 | $ | 1,154,432 | $ | 1,229,509 | ||||||||||||||
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Total assets
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$ | 1,247,979 | $ | 1,270,234 | $ | 1,249,543 | $ | 1,256,422 | $ | 1,311,835 | $ | 1,259,045 | $ | 1,336,533 | ||||||||||||||
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Deposits
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$ | 1,031,232 | $ | 1,044,556 | $ | 1,015,740 | $ | 1,025,385 | $ | 1,017,761 | $ | 1,037,859 | $ | 1,024,187 | ||||||||||||||
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Interest Bearing Liabilities
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$ | 1,020,396 | $ | 1,040,463 | $ | 1,009,619 | $ | 1,025,493 | $ | 1,093,471 | $ | 1,030,376 | $ | 1,121,549 | ||||||||||||||
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Shareholders' equity
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$ | 70,401 | $ | 74,363 | $ | 84,123 | $ | 87,184 | $ | 84,486 | $ | 72,371 | $ | 83,635 | ||||||||||||||
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MBT FINANCIAL CORP.
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CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
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Quarter Ended June 30,
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Six Months Ended June 30,
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Dollars in thousands (except per share data)
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2011
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2010
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2011
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2010
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Interest Income
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Interest and fees on loans
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$ | 9,992 | $ | 11,642 | $ | 20,344 | $ | 23,591 | ||||||||
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Interest on investment securities-
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Tax-exempt
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351 | 476 | 723 | 1,114 | ||||||||||||
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Taxable
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2,121 | 2,353 | 4,161 | 5,042 | ||||||||||||
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Interest on balances due from banks
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30 | 28 | 68 | 66 | ||||||||||||
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Total interest income
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12,494 | 14,499 | 25,296 | 29,813 | ||||||||||||
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Interest Expense
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Interest on deposits
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2,960 | 3,336 | 5,975 | 6,689 | ||||||||||||
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Interest on borrowed funds
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956 | 1,975 | 1,974 | 4,531 | ||||||||||||
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Total interest expense
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3,916 | 5,311 | 7,949 | 11,220 | ||||||||||||
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Net Interest Income
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8,578 | 9,188 | 17,347 | 18,593 | ||||||||||||
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Provision For Loan Losses
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2,850 | 3,750 | 8,600 | 5,950 | ||||||||||||
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Net Interest Income After
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Provision For Loan Losses
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5,728 | 5,438 | 8,747 | 12,643 | ||||||||||||
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Other Income
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Income from wealth management services
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996 | 1,141 | 1,983 | 2,103 | ||||||||||||
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Service charges and other fees
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1,179 | 1,301 | 2,296 | 2,572 | ||||||||||||
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Net gain (loss) on sales of securities
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29 | 2,791 | 96 | 3,086 | ||||||||||||
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Origination fees on mortgage loans sold
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86 | 137 | 169 | 269 | ||||||||||||
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Bank Owned Life Insurance income
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390 | 450 | 802 | 839 | ||||||||||||
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Other
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1,178 | 999 | 2,175 | 1,991 | ||||||||||||
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Total other income
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3,858 | 6,819 | 7,521 | 10,860 | ||||||||||||
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Other Expenses
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Salaries and employee benefits
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4,884 | 4,652 | 9,733 | 9,721 | ||||||||||||
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Occupancy expense
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688 | 703 | 1,465 | 1,508 | ||||||||||||
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Equipment expense
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748 | 797 | 1,442 | 1,637 | ||||||||||||
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Marketing expense
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235 | 256 | 481 | 504 | ||||||||||||
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Professional fees
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594 | 508 | 1,293 | 988 | ||||||||||||
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Collection expense
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57 | 102 | 134 | 196 | ||||||||||||
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Net loss on other real estate owned
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884 | 954 | 2,125 | 1,990 | ||||||||||||
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Other real estate owned expense
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564 | 601 | 872 | 1,352 | ||||||||||||
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FDIC deposit insurance assessment
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790 | 611 | 1,636 | 1,242 | ||||||||||||
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Debt prepayment penalties
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- | 2,492 | - | 2,492 | ||||||||||||
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Other
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925 | 953 | 1,912 | 1,897 | ||||||||||||
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Total other expenses
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10,369 | 12,629 | 21,093 | 23,527 | ||||||||||||
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Loss Before Income Taxes
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(783 | ) | (372 | ) | (4,825 | ) | (24 | ) | ||||||||
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Income Tax Expense
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- | - | - | - | ||||||||||||
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Net Loss
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$ | (783 | ) | $ | (372 | ) | $ | (4,825 | ) | $ | (24 | ) | ||||
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Basic Loss Per Common Share
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$ | (0.05 | ) | $ | (0.02 | ) | $ | (0.28 | ) | $ | - | |||||
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Diluted Loss Per Common Share
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$ | (0.05 | ) | $ | (0.02 | ) | $ | (0.28 | ) | $ | - | |||||
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Dividends Declared Per Common Share
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$ | - | $ | - | $ | - | $ | - | ||||||||
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MBT FINANCIAL CORP.
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CONSOLIDATED BALANCE SHEETS
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June 30, 2011
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December 31,
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Dollars in thousands
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(Unaudited)
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2010
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Assets
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Cash and Cash Equivalents
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Cash and due from banks
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Non-interest bearing
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$ | 19,044 | $ | 13,789 | ||||
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Interest bearing
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36,815 | 72,511 | ||||||
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Total cash and cash equivalents
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55,859 | 86,300 | ||||||
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Securities - Held to Maturity
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32,999 | 23,804 | ||||||
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Securities - Available for Sale
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328,115 | 289,365 | ||||||
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Federal Home Loan Bank stock - at cost
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10,605 | 11,831 | ||||||
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Loans held for sale
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349 | 973 | ||||||
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Loans - Net
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694,510 | 731,664 | ||||||
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Accrued interest receivable and other assets
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32,477 | 34,207 | ||||||
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Bank Owned Life Insurance
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47,812 | 50,664 | ||||||
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Premises and Equipment - Net
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29,712 | 30,569 | ||||||
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Total assets
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$ | 1,232,438 | $ | 1,259,377 | ||||
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Liabilities
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Deposits:
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Non-interest bearing
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$ | 152,200 | $ | 148,208 | ||||
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Interest-bearing
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866,104 | 883,685 | ||||||
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Total deposits
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1,018,304 | 1,031,893 | ||||||
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Federal Home Loan Bank advances
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110,000 | 113,500 | ||||||
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Repurchase agreements
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20,000 | 30,000 | ||||||
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Notes Payable
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135 | 135 | ||||||
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Interest payable and other liabilities
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11,024 | 9,851 | ||||||
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Total liabilities
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1,159,463 | 1,185,379 | ||||||
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Shareholders' Equity
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Common stock (no par value)
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2,054 | 2,146 | ||||||
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Retained Earnings
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71,672 | 76,497 | ||||||
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Unearned Compensation
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(134 | ) | (187 | ) | ||||
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Accumulated other comprehensive loss
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(617 | ) | (4,458 | ) | ||||
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Total shareholders' equity
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72,975 | 73,998 | ||||||
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Total liabilities and shareholders' equity
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$ | 1,232,438 | $ | 1,259,377 | ||||
FOR FURTHER INFORMATION:
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H. Douglas Chaffin
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John L. Skibski
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Mary Jane Town
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Chief Executive Officer
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Chief Financial Officer
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Marketing Officer
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(734) 384-8123
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(734) 242-1879
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(734) 240-2510
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| doug.chaffin@mbandt.com | john.skibski@mbandt.com | maryjane.town@mbandt.com |