EXHIBIT 99
MBT Financial Corp.Announces First Quarter 2009 Results
MONROE, Mich.,April 27, 2009 – MBT Financial Corp., (Nasdaq: MBTF), the parent company of Monroe Bank & Trust, reported a first quarter 2009 net loss of $816,000, or $0.05 per diluted share, compared to the profit of $2.6 million, or $0.16 per diluted share in the first quarter of 2008, as the provision for loan losses increased from $1.2 million in the first quarter of 2008 to $4.2 million in the first quarter of 2009.
H. Douglas Chaffin, President and CEO, commented, “The length and depth of this recession is having a significant impact on our customers. The continued weakness in the auto industry, high rates of unemployment, and depressed property values have affected all aspects of our local economy. These conditions continue to hurt our earnings through higher credit costs. However, we believe that the actions we are taking will help us through these times and leave us positioned well for the eventual economic recovery. While we expect these challenges to continue in the near future, we have maintained our position as the premier community bank locally, continuing to serve the credit and banking needs of the communities we serve in southeast Michigan.
Mr. Chaffin further commented on the Company’s earnings for the quarter. “Net Interest Income decreased $240,000 compared to the first quarter of 2008 due to a decrease of $39 million in average earning assets during this period. However, our net interest margin increased from 3.00% to 3.04% as a result of our continued focus on managing our balance sheet to limit interest rate risk. Non interest income decreased $631,000 due to a variety of factors, including an Other Than Temporary Impairment (OTTI) charge in our investment portfolio. Non interest expenses increased $1,464,000, or 15.1%, largely due to substantial increases in credit related expenses, including the write down of some of our Other Real Estate Owned (OREO), and costs of maintaining our OREO properties. Excluding FDIC insurance assessments and credit related expenses, non interest expenses decreased 2.2% compared to last year.
Mr. Chaffin concluded, “Our liquidity remains strong, our capital position is very healthy, our loan loss reserve is at its highest level, and our balance sheet is structured to properly manage our interest rate risk. A number of recent cost saving initiatives will take affect later this year, and will assist our efforts to return to profitability. We believe that there will continue to be a need for community banking and wealth management services in our markets, and we have positioned our company to thrive when economic conditions improve.”
Conference Call
MBT Financial Corp. will hold a conference call to discuss fourth quarter results on Tuesday, April 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 (800) 860-2442. 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, with $1.5 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, 42 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.
FOR FURTHER INFORMATION:
| | | | | |
| H. Douglas Chaffin | | John L. Skibski | | Mary Jane Town |
| Chief Executive Officer | | Chief Financial Officer | | Marketing Officer |
| (734) 384-8123 | | (734) 242-1879 | | (734) 240-2510 |
doug.chaffin@mbandt.com | | john.skibski@mbandt.com | | maryjane.town@mbandt.com |
MBT FINANCIAL CORP.
CONSOLIDATED FINANCIAL HIGHLIGHTS — UNAUDITED
| | | | | | | | | | | | | | | | | | | | | |
| | | Quarterly | |
| | | 2009 | | | 2008 | | | 2008 | | | 2008 | | | 2008 | |
| (dollars in thousands except per share data) | | 1st Qtr | | | 4th Qtr | | | 3rd Qtr | | | 2nd Qtr | | | 1st Qtr | |
EARNINGS | | | | | | | | | | | | | | | | | | | | |
| Net interest income | | $ | 10,213 | | | $ | 9,723 | | | $ | 11,086 | | | $ | 11,127 | | | $ | 10,453 | |
| FTE Net interest income | | $ | 10,565 | | | $ | 10,088 | | | $ | 11,417 | | | $ | 11,463 | | | $ | 10,784 | |
| Provision for loan and lease losses | | $ | 4,200 | | | $ | 10,000 | | | $ | 4,100 | | | $ | 2,700 | | | $ | 1,200 | |
| Non-interest income | | $ | 3,331 | | | $ | 3,900 | | | $ | 4,265 | | | $ | 3,858 | | | $ | 3,962 | |
| Non-interest expense | | $ | 11,162 | | | $ | 8,773 | | | $ | 11,365 | | | $ | 10,163 | | | $ | 9,698 | |
| Net income (loss) | | $ | (816 | ) | | $ | (2,997 | ) | | $ | 324 | | | $ | 1,718 | | | $ | 2,647 | |
| Basic earnings (loss) per share | | $ | (0.05 | ) | | $ | (0.19 | ) | | $ | 0.02 | | | $ | 0.11 | | | $ | 0.16 | |
| Diluted earnings (loss) per share | | $ | (0.05 | ) | | $ | (0.19 | ) | | $ | 0.02 | | | $ | 0.11 | | | $ | 0.16 | |
| Average shares outstanding | | | 16,165,841 | | | | 16,143,902 | | | | 16,136,402 | | | | 16,130,806 | | | | 16,127,047 | |
| Average diluted shares outstanding | | | 16,181,966 | | | | 16,154,652 | | | | 16,147,152 | | | | 16,148,006 | | | | 16,127,047 | |
| | | | | | | | | | | | | | | | | | | | | |
PERFORMANCE RATIOS | | | | | | | | | | | | | | | | | | | | |
| Return on average assets | | | -0.22 | % | | | -0.77 | % | | | 0.09 | % | | | 0.45 | % | | | 0.69 | % |
| Return on average common equity | | | -2.70 | % | | | -9.78 | % | | | 1.04 | % | | | 5.34 | % | | | 8.24 | % |
| |
| Base Margin | | | 2.89 | % | | | 2.65 | % | | | 3.08 | % | | | 3.05 | % | | | 2.84 | % |
| FTE Adjustment | | | 0.10 | % | | | 0.10 | % | | | 0.09 | % | | | 0.09 | % | | | 0.09 | % |
| Loan Fees | | | 0.05 | % | | | 0.04 | % | | | 0.07 | % | | | 0.07 | % | | | 0.07 | % |
| | | | | | | | | | | | | | | | |
| FTE Net Interest Margin | | | 3.04 | % | | | 2.79 | % | | | 3.24 | % | | | 3.21 | % | | | 3.00 | % |
| | | | | | | | | | | | | | | | | | | | | |
| Efficiency ratio | | | 69.70 | % | | | 59.11 | % | | | 56.66 | % | | | 61.24 | % | | | 64.51 | % |
| Full-time equivalent employees | | | 383 | | | | 384 | | | | 366 | | | | 384 | | | | 380 | |
| | | | | | | | | | | | | | | | | | | | | |
CAPITAL | | | | | | | | | | | | | | | | | | | | |
| Average equity to average assets | | | 8.09 | % | | | 7.83 | % | | | 8.19 | % | | | 8.42 | % | | | 8.36 | % |
| Book value per share | | $ | 7.21 | | | $ | 7.49 | | | $ | 7.46 | | | $ | 7.52 | | | $ | 7.94 | |
| Cash dividend per share | | $ | 0.01 | | | $ | 0.09 | | | $ | 0.09 | | | $ | 0.18 | | | $ | 0.18 | |
| | | | | | | | | | | | | | | | | | | | | |
ASSET QUALITY | | | | | | | | | | | | | | | | | | | | |
| Loan Charge-Offs | | $ | 1,575 | | | $ | 10,132 | | | $ | 3,954 | | | $ | 2,607 | | | $ | 3,955 | |
| Loan Recoveries | | $ | 600 | | | $ | 252 | | | $ | 169 | | | $ | 317 | | | $ | 216 | |
| | | | | | | | | | | | | | | | |
| Net Charge-Offs | | $ | 975 | | | $ | 9,880 | | | $ | 3,785 | | | $ | 2,290 | | | $ | 3,739 | |
| | | | | | | | | | | | | | | | | | | | | |
| Allowance for loan and lease losses | | $ | 21,753 | | | $ | 18,528 | | | $ | 18,408 | | | $ | 18,093 | | | $ | 17,683 | |
| | | | | | | | | | | | | | | | | | | | | |
| Nonaccrual Loans | | $ | 50,437 | | | $ | 47,872 | | | $ | 34,892 | | | $ | 38,115 | | | $ | 37,814 | |
| Loans 90 days past due | | $ | 864 | | | $ | 93 | | | $ | 119 | | | $ | 109 | | | $ | 94 | |
| Restructured loans | | $ | 4,901 | | | $ | 5,811 | | | $ | 6,685 | | | $ | 6,023 | | | $ | 1,679 | |
| | | | | | | | | | | | | | | | |
| Total non performing loans | | $ | 56,202 | | | $ | 53,776 | | | $ | 41,696 | | | $ | 44,247 | | | $ | 39,587 | |
| Other real estate owned & other assets | | $ | 23,627 | | | $ | 19,211 | | | $ | 17,893 | | | $ | 18,065 | | | $ | 15,819 | |
| | | | | | | | | | | | | | | | |
| Total non performing assets | | $ | 79,829 | | | $ | 72,987 | | | $ | 59,589 | | | $ | 62,312 | | | $ | 55,406 | |
| Problem Loans Still Performing | | $ | 75,127 | | | $ | 63,935 | | | $ | 56,156 | | | $ | 41,188 | | | $ | 40,521 | |
| | | | | | | | | | | | | | | | |
| Total Problem Assets | | $ | 154,956 | | | $ | 136,922 | | | $ | 115,745 | | | $ | 103,500 | | | $ | 95,927 | |
| | | | | | | | | | | | | | | | | | | | | |
| Net loan charge-offs to average loans | | | 0.42 | % | | | 4.08 | % | | | 1.54 | % | | | 0.93 | % | | | 1.51 | % |
| Allowance for losses to total loans | | | 2.35 | % | | | 1.97 | % | | | 1.88 | % | | | 1.83 | % | | | 1.78 | % |
| Non performing loans to gross loans | | | 6.08 | % | | | 5.71 | % | | | 4.25 | % | | | 4.47 | % | | | 3.99 | % |
| Non performing assets to total assets | | | 5.37 | % | | | 4.67 | % | | | 3.96 | % | | | 4.04 | % | | | 3.56 | % |
| Allowance to non performing loans | | | 38.71 | % | | | 34.45 | % | | | 44.15 | % | | | 40.89 | % | | | 44.67 | % |
| | | | | | | | | | | | | | | | | | | | | |
END OF PERIOD BALANCES | | | | | | | | | | | | | | | | | | | | |
| Loans and leases | | $ | 923,919 | | | $ | 941,732 | | | $ | 981,038 | | | $ | 989,839 | | | $ | 991,402 | |
| Total earning assets | | $ | 1,363,015 | | | $ | 1,434,098 | | | $ | 1,383,659 | | | $ | 1,421,653 | | | $ | 1,435,370 | |
| Total assets | | $ | 1,486,405 | | | $ | 1,562,401 | | | $ | 1,505,709 | | | $ | 1,542,747 | | | $ | 1,555,450 | |
| Deposits | | $ | 1,066,886 | | | $ | 1,136,078 | | | $ | 1,080,194 | | | $ | 1,065,770 | | | $ | 1,095,605 | |
| Interest Bearing Liabilities | | $ | 1,232,573 | | | $ | 1,282,993 | | | $ | 1,234,705 | | | $ | 1,267,718 | | | $ | 1,286,289 | |
| Shareholders’ equity | | $ | 116,647 | | | $ | 120,977 | | | $ | 120,413 | | | $ | 121,348 | | | $ | 128,081 | |
| Total Shares Outstanding | | | 16,178,121 | | | | 16,148,482 | | | | 16,139,538 | | | | 16,132,513 | | | | 16,128,321 | |
| | | | | | | | | | | | | | | | | | | | | |
AVERAGE BALANCES | | | | | | | | | | | | | | | | | | | | |
| Loans and leases | | $ | 934,766 | | | $ | 963,445 | | | $ | 980,466 | | | $ | 992,618 | | | $ | 998,060 | |
| Total earning assets | | $ | 1,405,306 | | | $ | 1,436,265 | | | $ | 1,398,768 | | | $ | 1,432,923 | | | $ | 1,444,037 | |
| Total assets | | $ | 1,513,321 | | | $ | 1,557,430 | | | $ | 1,505,823 | | | $ | 1,536,884 | | | $ | 1,545,048 | |
| Deposits | | $ | 1,100,982 | | | $ | 1,144,238 | | | $ | 1,076,734 | | | $ | 1,076,046 | | | $ | 1,109,664 | |
| Interest Bearing Liabilities | | $ | 1,258,040 | | | $ | 1,297,202 | | | $ | 1,245,873 | | | $ | 1,273,052 | | | $ | 1,283,990 | |
| Shareholders’ equity | | $ | 122,377 | | | $ | 121,969 | | | $ | 123,355 | | | $ | 129,353 | | | $ | 129,175 | |
MBT FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF INCOME — UNAUDITED
| | | | | | | | | |
| | | Quarter Ended March 31, |
| Dollars in thousands (except per share data) | | 2009 | | 2008 |
| |
Interest Income | | | | | | | | |
| Interest and fees on loans | | $ | 13,600 | | | $ | 16,428 | |
| Interest on investment securities- | | | | | | | | |
| Tax-exempt | | | 877 | | | | 815 | |
| Taxable | | | 4,500 | | | | 4,956 | |
| Interest on balances due from banks | | | 15 | | | | — | |
| Interest on federal funds sold | | | — | | | | 1 | |
| |
| Total interest income | | | 18,992 | | | | 22,200 | |
| |
| | | | | | | | | |
Interest Expense | | | | | | | | |
| Interest on deposits | | | 5,524 | | | | 7,491 | |
| Interest on borrowed funds | | | 3,255 | | | | 4,256 | |
| |
| Total interest expense | | | 8,779 | | | | 11,747 | |
| |
| | | | | | | | | |
Net Interest Income | | | 10,213 | | | | 10,453 | |
Provision For Loan Losses | | | 4,200 | | | | 1,200 | |
| |
| | | | | | | | | |
Net Interest Income After | | | | | | | | |
Provision For Loan Losses | | | 6,013 | | | | 9,253 | |
| |
| | | | | | | | | |
Other Income | | | | | | | | |
| Income from wealth management services | | | 914 | | | | 1,127 | |
| Service charges and other fees | | | 1,356 | | | | 1,526 | |
| Net gain (loss) on sales of securities | | | (163 | ) | | | 25 | |
| Origination fees on mortgage loans sold | | | 109 | | | | 193 | |
| Bank Owned Life Insurance income | | | 369 | | | | 355 | |
| Other | | | 746 | | | | 736 | |
| |
| Total other income | | | 3,331 | | | | 3,962 | |
| |
| | | | | | | | | |
Other Expenses | | | | | | | | |
| Salaries and employee benefits | | | 5,434 | | | | 5,582 | |
| Occupancy expense | | | 914 | | | | 995 | |
| Equipment expense | | | 848 | | | | 828 | |
| Marketing expense | | | 242 | | | | 241 | |
| Professional fees | | | 458 | | | | 469 | |
| Net loss on other real estate owned | | | 1,021 | | | | 35 | |
| Other | | | 2,245 | | | | 1,548 | |
| |
| Total other expenses | | | 11,162 | | | | 9,698 | |
| |
| | | | | | | | | |
Income (Loss) Before Income Taxes | | | (1,818 | ) | | | 3,517 | |
Income Tax Expense (Benefit) | | | (1,002 | ) | | | 870 | |
| |
Net Income (Loss) | | $ | (816 | ) | | $ | 2,647 | |
| |
| | | | | | | | | |
Basic Earnings (Loss) Per Common Share | | $ | (0.05 | ) | | $ | 0.16 | |
| |
| | | | | | | | | |
Diluted Earnings (Loss) Per Common Share | | $ | (0.05 | ) | | $ | 0.16 | |
| |
| | | | | | | | | |
Dividends Declared Per Common Share | | $ | 0.01 | | | $ | 0.18 | |
| |
MBT FINANCIAL CORP.
CONSOLIDATED BALANCE SHEETS
| | | | | | | | | |
| | | March 31, 2009 | | December 31, |
| Dollars in thousands | | (Unaudited) | | 2008 |
| |
Assets | | | | | | | | |
| Cash and Cash Equivalents | | | | | | | | |
| Cash and due from banks | | | | | | | | |
| Non-interest bearing | | | 15,390 | | | | 24,463 | |
| Interest bearing | | | 6,809 | | | | 26,323 | |
| |
| Total cash and cash equivalents | | | 22,199 | | | | 50,786 | |
| | | | | | | | | |
| Securities — Held to Maturity | | | 41,524 | | | | 46,840 | |
| Securities — Available for Sale | | | 377,677 | | | | 406,117 | |
| Federal Home Loan Bank stock — at cost | | | 13,086 | | | | 13,086 | |
| Loans held for sale | | | 1,478 | | | | 784 | |
| Loans — Net | | | 900,688 | | | | 922,420 | |
| Accrued interest receivable and other assets | | | 51,247 | | | | 43,973 | |
| Bank Owned Life Insurance | | | 45,857 | | | | 45,488 | |
| Premises and Equipment — Net | | | 32,649 | | | | 32,907 | |
| |
| Total assets | | $ | 1,486,405 | | | $ | 1,562,401 | |
| |
| | | | | | | | | |
Liabilities | | | | | | | | |
| Deposits: | | | | | | | | |
| Non-interest bearing | | $ | 125,813 | | | $ | 144,585 | |
| Interest-bearing | | | 941,073 | | | | 991,493 | |
| |
| Total deposits | | | 1,066,886 | | | | 1,136,078 | |
| | | | | | | | | |
| Federal Home Loan Bank advances | | | 261,500 | | | | 261,500 | |
| Repurchase agreements | | | 30,000 | | | | 30,000 | |
| Interest payable and other liabilities | | | 11,372 | | | | 13,846 | |
| |
| Total liabilities | | | 1,369,758 | | | | 1,441,424 | |
| |
| | | | | | | | | |
Shareholders’ Equity | | | | | | | | |
| Common stock (no par value) | | | 436 | | | | 321 | |
| Retained Earnings | | | 121,919 | | | | 122,896 | |
| Accumulated other comprehensive income | | | (5,708 | ) | | | (2,240 | ) |
| |
| Total shareholders’ equity | | | 116,647 | | | | 120,977 | |
| |
| Total liabilities and shareholders’ equity | | $ | 1,486,405 | | | $ | 1,562,401 | |
| |
