updated 1/28/2011 4:48:02 PM ET 2011-01-28T21:48:02

MONROE, Mich., Jan. 28, 2011 (GLOBE NEWSWIRE) -- Please note that this release was originally intended to be distributed on January 27 but was inadvertently delayed. 

MBT Financial Corp., (Nasdaq:MBTF), the parent company of Monroe Bank & Trust, reported a net loss of $7.5 million, or $0.44 per share, in the fourth quarter of 2010, compared to the loss of $25.1 million, or $1.55 per share in the fourth quarter of 2009. The loss was due to continuing elevated credit costs, a decrease in the net interest income, and an increase in the valuation allowance for the deferred tax assets. The Company reported a 2010 full year net loss of $11.9 million, or $0.72 per share, compared to the loss of $34.2 million, or $2.11 per share for 2009. The pre-tax loss for the quarter was $4.4 million, or $0.25 per share compared to $18.7 million, or $1.16 per share, in the fourth quarter of 2009. The year to date pre-tax loss of $8.7 million, or $0.53 per share is significantly lower than the pre-tax loss last year of $34.3 million, or $2.12 per share in 2009.

The Net Interest Income for the fourth quarter of 2010 was $8.8 million, a decrease of $1.3 million, or 12.7% compared to the same period in 2009. The net interest income decreased because the average earning assets decreased $141.6 million, or 11.0%, and the net interest margin decreased 10 basis points from 3.22% to 3.12%. The decrease in average earning assets included a decrease of $95.9 million, or 11.0%, in average loans, as weak economic conditions continue to have a negative impact on loan demand and growth.

Non interest income, excluding securities gains, increased 5.1% from $4.0 million in the fourth quarter of 2009 to $4.2 million in the fourth quarter of 2010. Total non interest expenses decreased $1.5 million, or 12.9%. The bank's efforts to control expenses resulted in significant reductions in salaries, employee benefits, and occupancy expenses. Excluding OREO losses, write downs, and carrying costs and FDIC deposit insurance assessments, non interest expenses decreased 3.8% from $8.4 million to $8.1 million in the fourth quarter of 2010 compared to the fourth quarter of 2009.

Total assets of the company decreased $124.0 million compared to December 31, 2009, mainly due to the previously mentioned decrease in loan demand and a reduction in borrowed funds. Core deposit activity remains strong and non interest bearing demand deposits increased by 9.8% over the 12 month period. Total Deposits were unchanged at $1.032 billion, but in market deposits increased $16.2 million to replace maturing brokered certificates of deposit, which decreased 25.6% from $63.2 million at December 31, 2009 to $47.0 million at December 31, 2010.

Although we recorded a loss for the year of $11.9 million, capital only decreased $7.8 million this year, and the ratio of equity to assets, a key indicator of bank strength and safety, only decreased from 5.91% at December 31, 2009 to 5.88% at December 31, 2010. In addition, the company's liquidity position strengthened, with cash and investments increasing from 29.9% of assets at the end of 2009 to 31.7% at the end of 2010.

H. Douglas Chaffin, President and CEO, commented, "Our results for the fourth quarter and full year 2010 are significantly better than the same periods in 2009. However, the prolonged recession continues to impact our asset quality and earnings. Fortunately, southeast Michigan is beginning to experience some indications that the national economic recovery that began in 2009 is spreading to our area. Real estate values are more stable, unemployment is improving, and commercial activity is increasing. Our net interest margin decreased slightly this quarter as our loan portfolio continued to shrink and we increased the amount of our assets held in lower yielding cash and securities. This increase in liquidity will allow us to meet the needs of our customers as loan demand improves, and will enable us to improve net interest margins when interest rates rise."

Mr. Chaffin concluded, "We will continue to focus our efforts on improving asset quality, maintaining liquidity, strengthening capital, seeking new sources of revenue, and controlling expenses. During the second half of 2010 we were able to raise some capital through our private placement of debt and equity securities. Coupled with the decrease in assets, this additional capital helped offset our loss and maintain adequate capital ratios at the Bank. We still have much work ahead of us given our current environment. Our focus on asset quality, earnings, and capital is producing results, and 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 fourth quarter results on Friday, January 28, 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 by calling (877) 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 .

The MBT Financial Corp. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4214 

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 Year to Date
(dollars in thousands except per share data) 2010

4th Qtr
2010

3rd Qtr
2010

2nd Qtr
2010

1st Qtr
2009

4th Qtr


2010


2009
               
EARNINGS              
Net interest income  $ 8,814  $ 9,421  $ 9,188  $ 9,405  $ 10,101  $ 36,828  $ 41,015
FTE Net interest income  $ 8,985  $ 9,603  $ 9,389  $ 9,677  $ 10,417  $ 37,654  $ 42,375
Provision for loan and lease losses  $ 7,086  $ 7,464  $ 3,750  $ 2,200  $ 17,000  $ 20,500  $ 36,000
Non-interest income  $ 4,195  $ 4,381  $ 6,819  $ 4,041  $ (40)  $ 19,436  $ 10,480
Non-interest expense  $ 10,277  $ 10,676  $ 12,629  $ 10,898  $ 11,798  $ 44,480  $ 49,774
Net income (loss)  $ (7,537)  $ (4,338)  $ (372)  $ 348  $ (25,112)  $ (11,899)  $ (34,177)
Basic earnings (loss) per share  $ (0.44)  $ (0.27)  $ (0.02)  $ 0.02  $ (1.55)  $ (0.72)  $ (2.11)
Diluted earnings (loss) per share  $ (0.44)  $ (0.27)  $ (0.02)  $ 0.02  $ (1.55)  $ (0.72)  $ (2.11)
Average shares outstanding  17,214,768 16,329,549 16,225,327 16,216,177 16,204,139 16,498,734 16,186,478
Average diluted shares outstanding 17,214,768 16,329,549 16,225,327 16,216,708 16,204,139 16,498,734 16,186,478
               
PERFORMANCE RATIOS              
Return on average assets -2.39% -1.37% -0.11% 0.10% -7.17% -0.92% -2.36%
Return on average common equity -35.55% -19.74% -1.77% 1.71% -90.17% -14.06% -29.53%
               
Base Margin 3.03% 3.21% 3.03% 3.01% 3.08% 3.07% 3.01%
FTE Adjustment 0.06% 0.06% 0.07% 0.09% 0.10% 0.07% 0.10%
Loan Fees 0.03% 0.05% 0.03% 0.03% 0.04% 0.03% 0.05%
FTE Net Interest Margin 3.12% 3.32% 3.13% 3.13% 3.22% 3.17% 3.16%
               
Efficiency ratio 67.61% 65.36% 63.84% 67.75% 61.93% 66.13% 65.07%
Full-time equivalent employees  342  350  356  351  362  350  369
               
CAPITAL              
Average equity to average assets 6.73% 6.94% 6.44% 6.08% 7.95% 6.54% 8.00%
Book value per share  $ 4.29  $ 4.94  $ 5.31  $ 5.17  $ 5.04  $ 4.29  $ 5.04
Cash dividend per share  $ --   $ --   $ --   $ --   $ --   $ --   $ 0.02
               
ASSET QUALITY              
Loan Charge-Offs  $ 7,217  $ 11,010  $ 3,967  $ 2,362  $ 11,721  $ 24,556  $ 31,994
Loan Recoveries  $ 607  $ 266  $ 131  $ 211  $ 211  $ 1,215  $ 1,529
Net Charge-Offs  $ 6,610  $ 10,744  $ 3,836  $ 2,151  $ 11,510  $ 23,341  $ 30,465
               
Allowance for loan and lease losses  $ 21,223  $ 20,746  $ 24,026  $ 24,112  $ 24,063  $ 21,223  $ 24,063
               
Nonaccrual Loans  $ 67,581  $ 64,192  $ 65,066  $ 61,722  $ 56,992  $ 67,581  $ 56,992
Loans 90 days past due  $ 4  $ 117  $ 166  $ 53  $ 20  $ 4  $ 20
Restructured loans  $ 14,098  $ 15,290  $ 25,058  $ 28,042  $ 29,102  $ 14,098  $ 29,102
Total non performing loans  $ 81,683  $ 79,599  $ 90,290  $ 89,817  $ 86,114  $ 81,683  $ 86,114
Other real estate owned & other assets  $ 19,815  $ 19,042  $ 18,387  $ 19,634  $ 18,832  $ 19,815  $ 18,832
Nonaccrual Investment Securities  $ 4,740  $ 4,740  $ 4,740  $ 4,740  $ 4,740  $ 4,740  $ 4,740
Total non performing assets  $ 106,238  $ 103,381  $ 113,417  $ 114,191  $ 109,686  $ 106,238  $ 109,686
Problem Loans Still Performing  $ 53,726  $ 49,589  $ 41,693  $ 44,105  $ 46,278  $ 53,726  $ 46,278
Total Problem Assets  $ 159,964  $ 152,970  $ 155,110  $ 158,296  $ 155,964  $ 159,964  $ 155,964
               
Net loan charge-offs to average loans 3.39% 5.32% 1.88% 1.04% 5.25% 2.89% 3.36%
Allowance for losses to total loans 2.82% 2.64% 2.97% 2.93% 2.83% 2.82% 2.83%
Non performing loans to gross loans 10.84% 10.13% 11.18% 10.91% 10.13% 10.84% 10.13%
Non performing assets to total assets 8.44% 8.21% 8.98% 8.27% 7.93% 8.44% 7.93%
Allowance to non performing loans 25.98% 26.06% 26.61% 26.85% 27.94% 25.98% 27.94%
               
END OF PERIOD BALANCES              
Loans and leases  $ 753,860  $ 786,054  $ 807,788  $ 823,515  $ 849,910  $ 753,860  $ 849,910
Total earning assets  $ 1,151,371  $ 1,143,825  $ 1,144,120  $ 1,260,637  $ 1,258,073  $ 1,151,371  $ 1,258,073
Total assets  $ 1,259,377  $ 1,259,876  $ 1,263,678  $ 1,381,616  $ 1,383,369  $ 1,259,377  $ 1,383,369
Deposits  $ 1,031,893  $ 1,022,460  $ 1,023,657  $ 1,028,921  $ 1,031,791  $ 1,031,893  $ 1,031,791
Interest Bearing Liabilities  $ 1,027,320  $ 1,022,398  $ 1,022,293  $ 1,149,728  $ 1,155,253  $ 1,027,320  $ 1,155,253
Shareholders' equity  $ 73,998  $ 84,079  $ 86,201  $ 83,913  $ 81,764  $ 73,998  $ 81,764
Total Shares Outstanding  17,252,329  17,030,844  16,228,029  16,222,177  16,210,110  17,252,329  16,210,110
               
AVERAGE BALANCES              
Loans and leases  $ 773,269  $ 801,240  $ 816,487  $ 836,122  $ 869,130  $ 806,594  $ 905,354
Total earning assets  $ 1,141,829  $ 1,148,796  $ 1,205,711  $ 1,253,567  $ 1,283,459  $ 1,187,067  $ 1,341,358
Total assets  $ 1,249,543  $ 1,256,422  $ 1,311,835  $ 1,361,507  $ 1,390,421  $ 1,294,414  $ 1,447,386
Deposits  $ 1,015,740  $ 1,025,385  $ 1,017,761  $ 1,024,651  $ 1,024,353  $ 1,020,871  $ 1,057,709
Interest Bearing Liabilities  $ 1,009,619  $ 1,025,493  $ 1,093,471  $ 1,149,938  $ 1,158,525  $ 1,069,124  $ 1,207,593
Shareholders' equity  $ 84,123  $ 87,184  $ 84,486  $ 82,775  $ 110,488  $ 84,653  $ 115,723
MBT FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
         
  Quarter Ended December 31, Year Ended December 31,
Dollars in thousands (except per share data) 2010 2009 2010 2009
Interest Income        
Interest and fees on loans  $ 10,832  $ 12,915  $ 46,010  $ 52,909
Interest on investment securities--        
Tax-exempt  396  779  1,936  3,358
Taxable  1,724  2,776  8,508  14,648
Interest on balances due from banks  32  32  132  89
Total interest income  12,984  16,502  56,586  71,004
         
Interest Expense        
Interest on deposits  3,126  3,706  13,094  17,986
Interest on borrowed funds  1,044  2,695  6,664  12,003
Total interest expense  4,170  6,401  19,758  29,989
         
Net Interest Income  8,814  10,101  36,828  41,015
Provision For Loan Losses  7,086  17,000  20,500  36,000
         
Net Interest Income After        
Provision For Loan Losses  1,728  (6,899)  16,328  5,015
         
Other Income        
Income from wealth management services  1,010  1,006  4,049  3,762
Service charges and other fees  1,312  1,484  5,297  5,788
Net gain (loss) on sales of securities  (9)  2,400  3,260  7,421
         
Other Than Temporary Impairment on securities  --   (5,859)  --   (14,952)
Portion of OTTI loss recognized in other comprehensive income (before taxes)  --   (581)  --   3,191
Net impairment losses  --   (6,440)  --   (11,761)
         
Origination fees on mortgage loans sold  259  123  717  473
Bank Owned Life Insurance income  412  459  1,944  1,493
Other  1,211  928  4,169  3,304
Total other income  4,195  (40)  19,436  10,480
         
Other Expenses        
Salaries and employee benefits  4,668  4,784  19,106  20,740
Occupancy expense  673  815  2,867  3,260
Equipment expense  753  721  3,170  3,069
Marketing expense  257  236  991  1,034
Professional fees  618  277  2,155  1,563
Collection expense  114  65  377  750
Net loss on other real estate owned  634  2,576  3,700  10,533
Other real estate owned expense  714  272  2,630  1,437
FDIC deposit insurance assessment  859  562  3,130  2,876
Debt prepayment penalties  --   --   2,492  -- 
Other  987  1,490  3,862  4,512
Total other expenses  10,277  11,798  44,480  49,774
         
Loss Before Income Taxes  (4,354)  (18,737)  (8,716)  (34,279)
Income Tax Expense (Benefit)  3,183  6,375  3,183  (102)
Net Loss  $ (7,537)  $ (25,112)  $ (11,899)  $ (34,177)
         
Basic Loss Per Common Share  $ (0.44)  $ (1.55)  $ (0.72)  $ (2.11)
         
Diluted Loss Per Common Share  $ (0.44)  $ (1.55)  $ (0.72)  $ (2.11)
         
Dividends Declared Per Common Share  $ --   $ --   $ --   $ 0.02
MBT FINANCIAL CORP.
CONSOLIDATED BALANCE SHEETS
     
     
Dollars in thousands December 31, 2010

(Unaudited)
December 31,

2009
Assets    
Cash and Cash Equivalents    
Cash and due from banks    
Non-interest bearing  $ 13,789  $ 18,448
Interest bearing  72,511  51,298
Total cash and cash equivalents  86,300  69,746
     
Securities - Held to Maturity  23,804  36,433
Securities - Available for Sale  289,365  307,346
Federal Home Loan Bank stock - at cost  11,831  13,086
Loans held for sale  973  931
Loans - Net  731,664  824,916
Accrued interest receivable and other assets  34,207  50,580
Bank Owned Life Insurance  50,664  47,953
Premises and Equipment - Net  30,569  32,378
Total assets  $ 1,259,377  $ 1,383,369
     
Liabilities    
Deposits:    
Non-interest bearing  $ 148,208  $ 135,038
Interest-bearing  883,685  896,753
Total deposits  1,031,893  1,031,791
     
Federal Home Loan Bank advances  113,500  228,500
Repurchase agreements  30,000  30,000
Notes Payable  135  -- 
Interest payable and other liabilities  9,851  11,314
Total liabilities  1,185,379  1,301,605
     
Shareholders' Equity    
Common stock (no par value)  2,146  593
Retained Earnings  76,497  88,396
Unearned Compensation  (187)  -- 
Accumulated other comprehensive loss  (4,458)  (7,225)
Total shareholders' equity  73,998  81,764
Total liabilities and shareholders' equity  $ 1,259,377  $ 1,383,369
CONTACT:  H. Douglas Chaffin
          Chief Executive Officer
          (734) 384-8123
          doug.chaffin@mbandt.com
         
          John L. Skibski
          Chief Financial Officer
          (734) 242-1879
          john.skibski@mbandt.com
         
          Mary Jane Town
          Marketing Officer
          (734) 240-2510
          maryjane.town@mbandt.com

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