MONROE, Mich., April 19, 2011 (GLOBE NEWSWIRE) -- MBT Financial Corp., (Nasdaq:MBTF), the parent company of Monroe Bank & Trust, reported a net loss of $4.0 million, or $0.23 per share, in the first quarter of 2011, compared to the profit of $348,000, or $0.02 per share in the first quarter of 2010. The loss was due to continuing high credit costs, including losses of $1.2 million on other real estate owned, and a provision for loan loss reserves totaling $5.8 million.
The Net Interest Income for the first quarter of 2011 was $8.8 million, a decrease of $0.6 million, or 6.8% compared to the same period in 2010. The net interest margin remained relatively stable, decreasing slightly from 3.13% in the first quarter of 2010 to 3.11% in the first quarter of 2011. The net interest income decreased because the average earning assets decreased $90.1 million for the past twelve months, or 7.2%. The decrease in average earning assets included a decrease of $91.5 million, or 10.9%, in average loans, as weak economic conditions continue to have a negative impact on loan demand and growth.
The provision for loan losses increased from $2.2 million last year to $5.75 million in the first quarter of 2011 due to an increase in the net charge offs from $2.2 million to $3.5 million, and to increase the allowance for loan losses to reflect recent historical loss rates.
Non interest income, excluding securities gains, decreased 4.0% from $3.7 million in the first quarter of 2010 to $3.6 million in the first quarter of 2011. Declines in origination fees from mortgage loans sold and deposit service charges were the primary causes of this decrease. Total non interest expenses decreased $174,000, or 1.6%. The bank's efforts to control expenses resulted in significant reductions in salaries, employee benefits, occupancy, and equipment expenses.
Total assets of the company increased $10.2 million compared to December 31, 2010, mainly due to the increase in deposit funding. Core deposit activity remains strong, with total Deposits increasing $13.2 million, or 1.3%. Capital decreased $3.6 million since year end, and with the small increase in assets, the ratio of equity to assets decreased from 5.88% at December 31, 2010 to 5.55% at March 31, 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 34.4% at the end of the first quarter of 2011.
H. Douglas Chaffin, President and CEO, commented, "Our results for the first quarter of 2011 were below our expectations because the economic recovery is taking longer than expected to improve our asset quality and earnings. Fortunately, we have a stable net interest margin, a solid deposit base, a very liquid balance sheet, and adequate capital, so when the eventual recovery 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 board is currently considering various options that might be available to raise additional capital and we are seeking shareholder approval to authorize additional capital securities at our Annual Meeting of Shareholders on May 5, 2011. 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 first quarter results on Wednesday, April 20, 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 . 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 .
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.
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
