EXHIBIT 99
MBT FINANCIAL CORP. ANNOUNCES FIRST QUARTER
IMPROVEMENTS IN EARNINGS AND ASSET QUALITY
Net Income Increases 6.8%, Earnings per Share Increase 19.2%
MONROE, MICHIGAN, April 14, 2004 -- MBT Financial Corp., (Nasdaq: MBTF), the
parent company of Monroe Bank & Trust, reported first quarter of 2004 Net Income
of $5,400,000, an increase of 6.8% over the $5,057,000 earned in the first
quarter of 2003. First quarter earnings per share (basic and diluted) increased
19.2% from $0.26 in 2003 to $0.31 in 2004. The earnings per share were favorably
impacted by the company's repurchase of 1,632,475 shares of its stock in
December, 2003.
Net income was positively affected by continued strong loan growth and
improvements in the net interest margin. Loans increased $21.2 million, or 2.5%
in the quarter, and are up $77.2 million, or 9.6% since March 31, 2003. The net
interest margin increased to 3.58% in the first quarter, compared to 3.40% last
quarter and 3.36% in the first quarter of 2003.
The company also reported that it continues to improve its asset quality, with a
6.0% reduction in non-performing assets during the first quarter. This follows a
17.3% reduction in non-performing assets in the fourth quarter of 2003. H.
Douglas Chaffin, President and Chief Executive Officer, commented, "Due to the
efforts of our lending staff and special assets group over the past few years,
we have been able to lower our NPAs by reducing the amount of assets being added
to the list and by working out the existing problems. We anticipate that we will
be able to continue to show improvement in asset quality this year." Net charge
offs in the quarter were $340,000, or 0.15% of average loans.
The bank is continuing to increase its presence in the Downriver area of
southern Wayne County, and expects to move into its new 11,000 square foot
building in Wyandotte in the third quarter. The bank is also building a new
branch next to its existing office in Temperance. After relocating to the new
building, the old building will be taken down and landscaped to make a nice
addition to the central business district of this community in southern Monroe
County. Chaffin added, "The Temperance branch is a vital part of our
organization, and we are pleased to be able to invest in this community."
ABOUT THE COMPANY
MBT Financial Corp., a single bank holding company headquartered in Monroe,
Michigan is the parent company of Monroe Bank & Trust. Founded in 1858, Monroe
Bank & Trust is one of the nation's largest community banks. The bank has over
$1.4 billion in assets and services nearly $1 billion in trust assets. MB&T is a
full-service bank, offering a broad range of services, from personal and
business accounts to complete credit options and the area's largest Trust
Department. With 24 offices, 33 ATMs, PhoneLink telephone banking and eLink
online banking, MB&T is the area's most accessible community bank.
MB&T is proud to be an active supporter of the community through contributions,
reinvestment, and civic involvement. MB&T is also known for ENLIST, its employee
volunteer program, which is celebrating its 20th anniversary this year. Since
its inception, participants in the ENLIST program have contributed nearly 90,000
hours of volunteer work in the communities we serve. Visit MB&T's web site at
www.MBandT.com, where extensive financial and corporate information can be found
in the Investor Relations section.
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 Corporation'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, the financial and securities markets and the
availability of and costs associated with sources of liquidity.
FOR FURTHER INFORMATION:
H. Douglas Chaffin John L. Skibski Herbert J. Lock
Chief Executive Officer Chief Financial Officer Investor Relations
(734) 384-8123 (734) 242-1879 (734) 242-2603
doug.chaffin@mbandt.com john.skibski@mbandt.com herb.lock@mbandt.com
MBT FINANCIAL CORP.
CONSOLIDATED FINANCIAL HIGHLIGHTS - UNAUDITED
QUARTERLY
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2004 2003 2003 2003 2003
(dollars in thousands except per share data) 1st Qtr 4th Qtr 3rd Qtr 2nd Qtr 1st Qtr
----------- ----------- ----------- ----------- -----------
EARNINGS
Net interest income $ 12,640 $ 12,626 $ 12,775 $ 12,902 $ 12,004
Provision for loan and lease losses $ 600 $ 30 $ 6,325 $ 825 $ 825
Non-interest income $ 3,226 $ 3,202 $ 3,882 $ 3,516 $ 3,203
Non-interest expense $ 7,889 $ 7,543 $ 7,680 $ 7,582 $ 7,374
Net income $ 5,400 $ 6,504 $ 1,973 $ 5,781 $ 5,057
Basic earnings per share $ 0.31 $ 0.36 $ 0.10 $ 0.30 $ 0.26
Diluted earnings per share $ 0.31 $ 0.35 $ 0.10 $ 0.30 $ 0.26
Average shares outstanding 17,501,262 18,747,900 19,115,234 19,111,172 19,134,441
Average diluted shares outstanding 17,579,979 18,779,982 19,133,621 19,143,611 19,134,441
PERFORMANCE RATIOS
Return on average assets 1.52% 1.76% 0.53% 1.60% 1.43%
Return on average common equity 14.90% 15.69% 4.46% 13.65% 12.16%
Net interest margin 3.58% 3.40% 3.42% 3.54% 3.36%
Efficiency ratio 46.98% 41.89% 41.87% 44.97% 45.65%
Full-time equivalent employees 386 389 389 386 384
CAPITAL
Average equity to average assets 10.19% 11.20% 11.98% 11.71% 11.76%
Book value per share $ 8.50 $ 8.20 $ 8.84 $ 9.07 $ 8.77
Cash dividend per share $ 0.15 $ 0.15 $ 0.15 $ 0.14 $ 0.14
ASSET QUALITY
Loan Charge-Offs $ 666 $ 6,683 $ 2,204 $ 812 $ 336
Loan Recoveries $ 326 $ 778 $ 602 $ 447 $ 207
----------- ----------- ----------- ----------- -----------
Net Charge-Offs $ 340 $ 5,905 $ 1,602 $ 365 $ 129
Allowance for loan and lease losses $ 14,760 $ 14,500 $ 18,773 $ 13,685 $ 13,096
Nonaccrual Loans $ 33,209 $ 34,248 $ 38,854 $ 24,962 $ 25,160
Loans 90 days past due $ 259 $ 100 $ 111 $ 174 $ 1,154
Restructured loans $ 2,561 $ 4,755 $ 7,023 $ 5,904 $ 5,890
----------- ----------- ----------- ----------- -----------
Total nonperforming loans $ 36,029 $ 39,103 $ 45,988 $ 31,040 $ 32,204
Other real estate owned $ 8,609 $ 8,434 $ 11,578 $ 11,445 $ 12,085
Nonperforming investment securities $ 171 $ 140 $ 79 $ 79 $ 79
----------- ----------- ----------- ----------- -----------
Total nonperforming assets $ 44,809 $ 47,677 $ 57,645 $ 42,564 $ 44,368
Net loan charge-offs to average 0.16% 2.74% 0.77% 0.18% 0.07%
loans
Allowance for losses to total loans 1.67% 1.68% 2.24% 1.65% 1.63%
Nonperforming loans (including OREO)
to Gross Loans 5.06% 5.50% 6.86% 5.12% 5.50%
Nonperforming assets to total assets 3.17% 3.27% 3.92% 2.98% 3.04%
Allowance for loan losses to
nonperforming assets 32.94% 30.41% 32.57% 32.15% 29.52%
END OF PERIOD BALANCES
Loans and leases $ 882,290 $ 863,850 $ 839,059 $ 829,708 $ 805,029
Total earning assets $ 1,326,025 $ 1,372,332 $ 1,361,269 $ 1,338,328 $ 1,385,482
Total assets $ 1,412,692 $ 1,457,788 $ 1,471,220 $ 1,428,231 $ 1,460,363
Deposits $ 1,020,188 $ 1,039,117 $ 1,070,262 $ 1,023,426 $ 1,034,875
Shareholders' equity $ 148,899 $ 143,446 $ 168,905 $ 173,474 $ 167,549
AVERAGE BALANCES
Loans and leases $ 872,746 $ 854,473 $ 827,259 $ 816,203 $ 788,847
Total earning assets $ 1,341,444 $ 1,390,854 $ 1,370,052 $ 1,364,184 $ 1,354,084
Total assets $ 1,430,303 $ 1,468,278 $ 1,463,382 $ 1,449,808 $ 1,433,367
Deposits $ 1,029,856 $ 1,077,644 $ 1,045,847 $ 1,035,872 $ 1,032,039
Shareholders' equity $ 145,751 $ 164,458 $ 175,367 $ 169,827 $ 168,632
MBT FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
QUARTER ENDED MARCH 31,
Dollars in thousands (except per share data) 2004 2003
---------- ----------
INTEREST INCOME
Interest and fees on loans $ 13,559 $ 13,816
Interest on investment securities-
Tax-exempt 2,840 3,075
Taxable 2,160 2,613
Interest on federal funds sold 1 55
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Total interest income 18,560 19,559
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INTEREST EXPENSE
Interest on deposits 3,239 4,363
Interest on borrowed funds 2,681 3,192
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Total interest expense 5,920 7,555
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NET INTEREST INCOME 12,640 12,004
PROVISION FOR LOAN LOSSES 600 825
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NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES 12,040 11,179
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OTHER INCOME
Income from trust services 814 873
Service charges and other fees 1,278 1,245
Net gain on sales of securities 107 172
Origination fees on mortgage loans sold 160 276
Bank Owned Life Insurance income 387 201
Other 480 436
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Total other income 3,226 3,203
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OTHER EXPENSES
Salaries and employee benefits 4,488 4,222
Occupancy expense 808 668
Other 2,593 2,484
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Total other expenses 7,889 7,374
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INCOME BEFORE PROVISION
FOR INCOME TAXES 7,377 7,008
PROVISION FOR INCOME TAXES 1,977 1,951
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NET INCOME $ 5,400 $ 5,057
========== ==========
BASIC EARNINGS PER COMMON SHARE $ 0.31 $ 0.26
========== ==========
DILUTED EARNINGS PER COMMON SHARE $ 0.31 $ 0.26
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DIVIDENDS DECLARED PER COMMON SHARE $ 0.15 $ 0.14
========== ==========
MBT FINANCIAL CORP.
CONSOLIDATED BALANCE SHEETS - UNAUDITED
MARCH 31, DECEMBER 31, MARCH 31,
Dollars in thousands 2004 2003 2003
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ASSETS
Cash and Cash Equivalents
Cash and due from banks $ 24,342 $ 22,525 $ 22,308
Federal funds sold - - -
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Total cash and cash equivalents 24,342 22,525 22,308
Securities - Held to Maturity 98,119 99,154 108,729
Securities - Available for Sale 333,783 397,642 460,474
Federal Home Loan Bank stock - at cost 11,833 11,686 11,250
Loans held for sale 204 1,406 448
Loans - Net 867,326 847,944 791,485
Accrued interest receivable and other assets 24,070 25,627 31,860
Bank Owned Life Insurance 34,167 33,780 17,186
Premises and Equipment - Net 18,848 18,024 16,623
------------- ------------- ------------
Total assets $ 1,412,692 $ 1,457,788 $ 1,460,363
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LIABILITIES
Deposits:
Non-interest bearing $ 126,288 $ 135,536 $ 119,034
Interest-bearing 893,900 903,581 915,841
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Total deposits 1,020,188 1,039,117 1,034,875
Federal Home Loan Bank advances 225,000 225,000 225,000
Federal funds purchased 10,600 45,000 24,900
Interest payable and other liabilities 8,005 5,225 8,039
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Total liabilities 1,263,793 1,314,342 1,292,814
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STOCKHOLDERS' EQUITY
Common stock (no par value) - - -
Additional paid-in capital 20,668 20,414 50,421
Retained Earnings 126,641 123,867 117,777
Accumulated other comprehensive income 1,590 (835) (649)
------------- ------------- ------------
Total stockholders' equity 148,899 143,446 167,549
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Total liabilities and stockholders' equity $ 1,412,692 $ 1,457,788 $ 1,460,363
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