Exhibit 99
MBT FINANCIAL CORP. REACHES $1.5 BILLION IN
ASSETS, REPORTS SECOND QUARTER EARNINGS
Earnings Per Share Increases 6.7%, Non Performing Assets Decline 5.2%
MONROE, MICHIGAN, July 15, 2004 - MBT Financial Corp., (Nasdaq: MBTF), the
parent company of Monroe Bank & Trust, reported that it reached the $1.5 billion
asset size milestone at the end of the second quarter of 2004. The Company also
reported second quarter Net Income of $5,648,000, or $0.32 per share (basic and
diluted). This is an increase of 6.7% over the $0.30 per share (basic and
diluted) earned in the second quarter of 2003. Although Net Income decreased
slightly from $5,781,000 in the second quarter of 2003, earnings per share was
favorably impacted by the Company's stock repurchases. The Company repurchased
1,632,475 shares of its stock in a self tender offer in December, 2003 and has
repurchased 1,049,559 shares in its ongoing repurchase program that began in
January, 2001. Year to date Net Income was $11,048,000, an increase of 1.9% from
the first six months of 2003. Year to date earnings per share was $0.63 (basic
and diluted), an increase of 10.5% compared to the $0.57 (basic and diluted)
earned in 2003.
Loan growth remained strong, and net interest margin was stable in the quarter.
Loans increased $41.4 million, or 4.7% in the quarter, and are up $94.0 million,
or 11.3% since June 30, 2003. The net interest margin decreased slightly to
3.56% in the second quarter, compared to 3.58% last quarter, but increased
slightly from 3.54% in the second quarter of 2003.
The company also reported that it continues to improve its asset quality, with a
5.2% reduction in non-performing assets during the second quarter. This follows
6.3% and 17.8% reductions experienced in the previous two quarters. H. Douglas
Chaffin, President and Chief Executive Officer, commented, "We were able to
liquidate some of our Other Real Estate Owned during the quarter and reduce our
nonaccrual loans. Our delinquency ratios have also been improving and we
anticipate that we will be able to continue to show improvement in asset quality
this year." Net charge offs in the quarter were $384,000, or 0.17% of average
loans.
The bank moved into its new office in Temperance, Michigan during the second
quarter. The new building is located on a site adjacent to where the old
building was located, and enables the bank to continue to provide its brand of
customer-friendly service in a more efficient manner. The bank is also
continuing to increase its presence in the Downriver area of southern Wayne
County, and expects to move into its new 11,000 square foot regional center in
Wyandotte by the end of the third quarter.
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 $1.5
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.3
CONSOLIDATED FINANCIAL HIGHLIGHTS - UNAUDITED
QUARTERLY
----------------------------------------------------------------------------
2004 2004 2003 2003 2003
(dollars in thousands except per share data) 2ND QTR 1ST QTR 4TH QTR 3RD QTR 2ND QTR
------------- -------------- ------------- ------------- -------------
EARNINGS
Net interest income $ 12,985 $ 12,640 $ 12,626 $ 12,775 $ 12,902
FTE Net interest income $ 13,649 $ 13,316 $ 13,598 $ 13,743 $ 13,798
Provision for loan and lease losses $ 600 $ 600 $ 30 $ 6,325 $ 825
Non-interest income $ 3,361 $ 3,226 $ 3,202 $ 3,882 $ 3,516
Non-interest expense $ 7,995 $ 7,889 $ 7,543 $ 7,680 $ 7,582
Net income $ 5,648 $ 5,400 $ 6,504 $ 1,973 $ 5,781
Basic earnings per share $ 0.32 $ 0.31 $ 0.36 $ 0.10 $ 0.30
Diluted earnings per share $ 0.32 $ 0.31 $ 0.35 $ 0.10 $ 0.30
Average shares outstanding 17,429,648 17,501,262 18,747,900 19,115,234 19,111,172
Average diluted shares outstanding 17,500,695 17,579,979 18,779,982 19,133,621 19,143,611
PERFORMANCE RATIOS
Return on average assets 1.55% 1.52% 1.76% 0.53% 1.60%
Return on average common equity 15.26% 14.90% 15.69% 4.46% 13.65%
Net interest margin, net of loan fees 3.56% 3.58% 3.40% 3.42% 3.54%
Efficiency ratio 45.34% 46.98% 41.89% 41.87% 44.97%
Full-time equivalent employees 384 386 389 389 386
CAPITAL
Average equity to average assets 10.15% 10.19% 11.20% 11.98% 11.71%
Book value per share $ 8.29 $ 8.50 $ 8.20 $ 8.84 $ 9.07
Cash dividend per share $ 0.15 $ 0.15 $ 0.15 $ 0.15 $ 0.14
ASSET QUALITY
Loan Charge-Offs $ 714 $ 666 $ 6,683 $ 2,204 $ 812
Loan Recoveries $ 330 $ 326 $ 778 $ 602 $ 447
----------- ----------- ----------- ----------- -----------
Net Charge-Offs $ 384 $ 340 $ 5,905 $ 1,602 $ 365
Allowance for loan and lease losses $ 14,976 $ 14,760 $ 14,500 $ 18,773 $ 13,685
Nonaccrual Loans $ 31,525 $ 32,538 $ 33,664 $ 38,499 $ 24,962
Loans 90 days past due $ 189 $ 259 $ 100 $ 111 $ 174
Restructured loans $ 3,348 $ 2,561 $ 4,755 $ 7,023 $ 5,904
----------- ----------- ----------- ----------- -----------
Total nonperforming loans $ 35,062 $ 35,358 $ 38,519 $ 45,633 $ 31,040
Other real estate owned $ 6,570 $ 8,579 $ 8,434 $ 11,578 $ 11,445
Nonperforming investment securities $ 163 $ 171 $ 140 $ 79 $ 79
----------- ----------- ----------- ----------- -----------
Total nonperforming assets $ 41,795 $ 44,108 $ 47,093 $ 57,290 $ 42,564
Net loan charge-offs to average loans 0.17% 0.16% 2.78% 0.78% 0.18%
Allowance for losses to total loans 1.62% 1.67% 1.68% 2.24% 1.65%
Nonperforming loans (including OREO)
to Gross Loans 4.51% 4.98% 5.44% 6.82% 5.12%
Nonperforming assets to total assets 2.74% 3.12% 3.23% 3.89% 2.98%
Allowance for loan losses to
nonperforming assets 35.83% 33.46% 30.79% 32.77% 32.15%
END OF PERIOD BALANCES
Loans and leases $ 923,738 $ 882,290 $ 863,850 $ 839,059 $ 829,708
Total earning assets $ 1,433,115 $ 1,326,025 $ 1,372,332 $ 1,361,269 $ 1,338,328
Total assets $ 1,523,976 $ 1,412,692 $ 1,457,788 $ 1,471,220 $ 1,428,231
Deposits $ 1,038,441 $ 1,020,188 $ 1,039,117 $ 1,070,262 $ 1,023,426
Shareholders' equity $ 144,393 $ 148,899 $ 143,446 $ 168,905 $ 173,474
AVERAGE BALANCES
Loans and leases $ 905,502 $ 872,746 $ 854,473 $ 827,259 $ 816,203
Total earning assets $ 1,378,490 $ 1,341,444 $ 1,390,854 $ 1,370,052 $ 1,364,184
Total assets $ 1,466,359 $ 1,430,303 $ 1,468,278 $ 1,463,382 $ 1,449,808
Deposits $ 1,028,702 $ 1,029,856 $ 1,077,644 $ 1,045,847 $ 1,035,872
Shareholders' equity $ 148,877 $ 145,751 $ 164,458 $ 175,367 $ 169,827
MBT FINANCIAL CORP.
CONSOLIDATED BALANCE SHEETS - UNAUDITED
JUNE 30, DECEMBER 31, JUNE 30,
Dollars in thousands 2004 2003 2003
ASSETS
Cash and Cash Equivalents
Cash and due from banks $ 26,126 $ 22,525 $ 26,013
Federal funds sold - - 2,500
Total cash and cash equivalents 26,126 22,525 28,513
Securities - Held to Maturity 91,513 99,154 104,264
Securities - Available for Sale 405,189 397,642 390,457
Federal Home Loan Bank stock - at cost 12,675 11,686 11,399
Loans held for sale 657 1,406 2,743
Loans - Net 908,105 847,944 813,280
Accrued interest receivable and other assets 25,715 25,627 27,551
Bank Owned Life Insurance 34,546 33,780 32,516
Premises and Equipment - Net 19,450 18,024 17,508
Total assets $ 1,523,976 $ 1,457,788 $ 1,428,231
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LIABILITIES
Deposits:
Non-interest bearing $ 142,152 $ 135,536 $ 133,565
Interest-bearing 896,289 903,581 889,861
Total deposits 1,038,441 1,039,117 1,023,426
Federal Home Loan Bank advances 253,500 225,000 225,000
Federal funds purchased 57,500 45,000 -
Repurchase agreements 21,900 - -
Interest payable and other liabilities 8,242 5,225 6,331
Total liabilities 1,379,583 1,314,342 1,254,757
STOCKHOLDERS' EQUITY
Common stock (no par value) - - -
Additional paid-in capital 18,899 20,414 50,531
Retained Earnings 129,677 123,867 120,882
Accumulated other comprehensive income (4,183) (835) 2,061
Total stockholders' equity 144,393 143,446 173,474
Total liabilities and stockholders' equity $ 1,523,976 $ 1,457,788 $ 1,428,231
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MBT FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
QUARTER ENDED JUNE 30,
Dollars in thousands (except per share data) 2004 2003
INTEREST INCOME
Interest and fees on loans $13,954 $14,180
Interest on investment securities-
Tax-exempt 1,420 1,572
Taxable 3,876 4,232
Interest on federal funds sold - 36
Total interest income 19,250 20,020
INTEREST EXPENSE
Interest on deposits 3,427 4,137
Interest on borrowed funds 2,839 2,981
Total interest expense 6,266 7,118
NET INTEREST INCOME 12,984 12,902
PROVISION FOR LOAN LOSSES 600 825
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES 12,384 12,077
OTHER INCOME
Income from trust services 921 820
Service charges and other fees 1,372 1,304
Net gain on sales of securities 11 242
Origination fees on mortgage loans sold 169 356
Bank Owned Life Insurance income 379 329
Other 509 465
Total other income 3,361 3,516
OTHER EXPENSES
Salaries and employee benefits 4,494 4,136
Occupancy expense 689 639
Other 2,812 2,807
Total other expenses 7,995 7,582
INCOME BEFORE PROVISION
FOR INCOME TAXES 7,750 8,011
PROVISION FOR INCOME TAXES 2,102 2,230
NET INCOME $ 5,648 $ 5,781
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BASIC EARNINGS PER COMMON SHARE $ 0.32 $ 0.30
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DILUTED EARNINGS PER COMMON SHARE $ 0.32 $ 0.30
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DIVIDENDS DECLARED PER COMMON SHARE $ 0.15 $ 0.14
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MBT FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
SIX MONTHS ENDED JUNE 30,
Dollars in thousands (except per share data) 2004 2003
INTEREST INCOME
Interest and fees on loans $27,513 $27,996
Interest on investment securities-
Tax-exempt 2,860 3,180
Taxable 7,436 8,312
Interest on federal funds sold 1 91
Total interest income 37,810 39,579
INTEREST EXPENSE
Interest on deposits 6,666 8,500
Interest on borrowed funds 5,520 6,173
Total interest expense 12,186 14,673
NET INTEREST INCOME 25,624 24,906
PROVISION FOR LOAN LOSSES 1,200 1,650
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES 24,424 23,256
OTHER INCOME
Income from trust services 1,735 1,693
Service charges and other fees 2,650 2,549
Net gain on sales of securities 118 414
Origination fees on mortgage loans sold 329 632
Bank Owned Life Insurance income 765 530
Other 990 901
Total other income 6,587 6,719
OTHER EXPENSES
Salaries and employee benefits 8,982 8,358
Occupancy expense 1,497 1,307
Other 5,405 5,291
Total other expenses 15,884 14,956
INCOME BEFORE PROVISION
FOR INCOME TAXES 15,127 15,019
PROVISION FOR INCOME TAXES 4,079 4,181
NET INCOME $11,048 $10,838
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BASIC EARNINGS PER COMMON SHARE $ 0.63 $ 0.57
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DILUTED EARNINGS PER COMMON SHARE $ 0.63 $ 0.57
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DIVIDENDS DECLARED PER COMMON SHARE $ 0.30 $ 0.28
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