EXHIBIT 99
[MBT FINANCIAL CORP. LOGO]
MBT FINANCIAL CORP. REPORTS 2005 FULL YEAR
AND FOURTH QUARTER EARNINGS
MONROE, MICH., January 12, 2006 - MBT Financial Corp., (Nasdaq: MBTF), the
parent company of Monroe Bank & Trust, reported fourth quarter net income of
$5.64 million, an increase of 3.6% from the $5.442 million reported for the
fourth quarter of 2004. Diluted earnings per share increased 3.2% from $0.31 to
$0.32. Net Interest Income for the quarter declined from $13.5 million to $12.7
million even though the average earning assets increased 4.7% as the fully
taxable equivalent net interest margin declined from 3.85% to 3.45%.
Net Income for the year ending December 31, 2005 was $18.5 million, a decrease
of 18.3% from the $22.6 million reported in 2004. The decrease in annual
earnings was the result of credit related charges in the third quarter of 2005
as well as a decline in the net interest margin. Diluted earnings per share
decreased 17.8% from $1.29 to $1.06.
H. Douglas Chaffin, President and CEO, commented, "Although the current interest
rate environment continues to challenge our net interest income, non-interest
income increased by 8.7%, net of securities gains. In addition, non-interest
expenses declined by 9.8%. As a result our Efficiency Ratio improved from 47.47%
in the fourth quarter of 2004 to 45.10% in the fourth quarter of 2005."
Mr. Chaffin further commented on the Bank's continuing progress at improving
asset quality. "Annualized Net Charge-offs decreased to 0.22% of average loans
this quarter, compared to 0.87% in the fourth quarter of 2004 and 1.70% last
quarter. Although non-performing assets (NPAs) only decreased $135,000 during
the last quarter, NPAs decreased to 1.61% of total assets at December 31, 2005,
down from 2.57% at December 31, 2004, and 1.65% at September 30, 2005. The
Allowance for Loan Losses was $12.9 million, or 1.30% of total loans at December
31, 2005.
"The interest rate environment continued to challenge us in the fourth quarter.
The net interest margin decreased compared to last quarter as the flattening of
the yield curve worsened. We are pleased with the increase in non interest
income, our expense control, and the reduction of non-performing assets. We
continue to seek ways to expand our service area geographically, as well as
enhancing our services within existing markets. Recently we announced our intent
to build a new branch office on the west side of Dundee and we installed an ATM
in the new Global Engine Manufacturing Alliance plant in Dundee. Combined with
our existing branch on the east side of Dundee, these additions will enhance our
ability to serve the fastest growing community in our market."
Total revenue, comprised of net interest income and non-interest income, was
$16.3 million in the fourth quarter of 2005, a decrease of 5.2% compared to the
same period of 2004. Mr. Chaffin noted, "Interest rate risk management is a
crucial component of our strategy. Our cost of funds continued to increase
faster than the yield on our assets, resulting in a decrease in our net interest
margin. We do not anticipate a significant improvement in the interest rate
environment in 2006, and our strategies with our balance sheet structure and
pricing are designed to prevent further decline in the margin."
Total assets were $1.64 billion at December 31, 2005, an increase of 5.6% from a
year earlier. Loans grew $43.4 million, or 4.6% over the year, funded by deposit
growth of $84.0 million, or 7.6% over the same period.
Shareholders' equity at December 31, 2005 was $152.1 million, a twelve-month
decrease of 2.1%. Average equity to assets for the fourth quarter was 9.54% and
total shares outstanding at quarter end were 17,197,116. Mr. Chaffin concluded,
"Although we are not satisfied with the fourth quarter performance, we believe
that our improvements in non-interest income and expenses will help us through
this period of challenging economic and interest rate conditions."
CONFERENCE CALL
MBT Financial Corp. will hold a conference call to discuss fourth quarter
results on Friday, January 13, 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) 407-8031. The event will be archived on the Company's web site and
available for three months following the call.
ABOUT THE COMPANY
MBT Financial Corp., 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 more than
$1.6 billion in assets. MBT is a full service bank offering personal and
business accounts and complete credit options, and MBT's Wealth Management Group
is one of the areas largest. With 26 offices, 38 ATMs, PhoneLink telephone
banking and eLink online banking, MBT prides itself on an incomparable level of
service and access for its customers. Visit MBT's web site at
http://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, the financial and securities markets and the availability of and
costs associated with sources of liquidity. The Corporation 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 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
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QUARTERLY
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2005 2005 2005 2005 2004
(dollars in thousands except per share data) 4TH QTR 3RD QTR 2ND QTR 1ST QTR 4TH QTR
----------- ----------- ----------- ----------- -----------
EARNINGS
Net interest income $ 12,686 $ 13,113 $ 12,691 $ 12,622 $ 13,454
FTE Net interest income $ 13,243 $ 13,659 $ 13,253 $ 13,185 $ 14,079
Provision for loan and lease losses $ 866 $ 4,100 $ 600 $ 600 $ 691
Non-interest income $ 3,656 $ 3,683 $ 3,664 $ 3,446 $ 3,793
Non-interest expense $ 7,856 $ 9,023 $ 8,210 $ 8,729 $ 8,707
Net income $ 5,640 $ 2,571 $ 5,369 $ 4,879 $ 5,442
Basic earnings per share $ 0.32 $ 0.15 $ 0.31 $ 0.28 $ 0.32
Diluted earnings per share $ 0.32 $ 0.15 $ 0.31 $ 0.28 $ 0.31
Average shares outstanding 17,222,943 17,282,699 17,337,452 17,498,000 17,426,995
Average diluted shares outstanding 17,274,577 17,366,349 17,411,942 17,593,705 17,562,768
PERFORMANCE RATIOS
Return on average assets 1.38% 0.64% 1.37% 1.26% 1.40%
Return on average common equity 14.45% 6.45% 14.08% 12.72% 13.98%
Base Margin 3.20% 3.32% 3.27% 3.30% 3.49%
FTE Adjustment 0.14% 0.14% 0.15% 0.15% 0.17%
Loan Fees 0.11% 0.15% 0.17% 0.17% 0.19%
----------- ----------- ----------- ----------- -----------
FTE Net Interest Margin 3.45% 3.61% 3.59% 3.62% 3.85%
Efficiency ratio 45.10% 43.09% 49.98% 51.76% 47.47%
Full-time equivalent employees 413 421 423 404 396
CAPITAL
Average equity to average assets 9.54% 9.88% 9.72% 9.92% 10.04%
Book value per share $ 8.84 $ 8.93 $ 9.09 $ 8.79 $ 8.89
Cash dividend per share $ 0.17 $ 0.17 $ 0.16 $ 0.16 $ 0.16
ASSET QUALITY
Loan Charge-Offs $ 1,423 $ 4,575 $ 698 $ 2,644 $ 2,451
Loan Recoveries $ 877 $ 465 $ 633 $ 559 $ 376
----------- ----------- ----------- ----------- -----------
Net Charge-Offs $ 546 $ 4,110 $ 65 $ 2,085 $ 2,075
Allowance for loan and lease losses $ 12,885 $ 12,565 $ 12,575 $ 12,040 $ 13,800
Nonaccrual Loans $ 16,212 $ 14,872 $ 27,990 $ 27,625 $ 29,015
Loans 90 days past due $ 101 $ 100 $ 48 $ 101 $ 230
Restructured loans $ 1,813 $ 2,731 $ 2,035 $ 2,041 $ 3,715
----------- ----------- ----------- ----------- -----------
Total nonperforming loans $ 18,126 $ 17,703 $ 30,073 $ 29,767 $ 32,960
Other real estate owned $ 8,336 $ 8,894 $ 5,068 $ 6,370 $ 6,958
Nonperforming investment securities $ -- $ -- $ -- $ -- $ --
----------- ----------- ----------- ----------- -----------
Total nonperforming assets $ 26,462 $ 26,597 $ 35,141 $ 36,137 $ 39,918
Net loan charge-offs to average loans 0.22% 1.70% 0.03% 0.89% 0.87%
Allowance for losses to total loans 1.30% 1.29% 1.30% 1.28% 1.46%
Nonperforming assets to Gross Loans 2.67% 2.73% 3.63% 3.84% 4.22%
Nonperforming assets to total assets 1.61% 1.65% 2.22% 2.33% 2.57%
Allowance to nonperforming assets 48.69% 47.24% 35.78% 33.32% 34.57%
END OF PERIOD BALANCES
Loans and leases $ 989,311 $ 972,936 $ 966,935 $ 940,155 $ 945,881
Total earning assets $ 1,528,017 $ 1,507,371 $ 1,492,957 $ 1,459,091 $ 1,465,322
Total assets $ 1,638,836 $ 1,610,286 $ 1,583,433 $ 1,551,607 $ 1,552,279
Deposits $ 1,184,710 $ 1,145,411 $ 1,106,180 $ 1,099,393 $ 1,100,711
Interest Bearing Liabilities $ 1,298,094 $ 1,295,735 $ 1,260,731 $ 1,243,904 $ 1,237,742
Shareholders' equity $ 152,099 $ 154,219 $ 157,140 $ 153,618 $ 155,346
Total Shares Outstanding 17,197,116 17,272,923 17,285,950 17,472,389 17,465,839
AVERAGE BALANCES
Loans and leases $ 977,770 $ 969,498 $ 953,503 $ 949,978 $ 948,628
Total earning assets $ 1,523,391 $ 1,499,601 $ 1,479,798 $ 1,475,802 $ 1,454,891
Total assets $ 1,623,118 $ 1,600,591 $ 1,572,992 $ 1,567,950 $ 1,538,860
Deposits $ 1,163,964 $ 1,139,831 $ 1,104,715 $ 1,117,572 $ 1,079,610
Interest Bearing Liabilities $ 1,299,820 $ 1,279,137 $ 1,259,412 $ 1,253,664 $ 1,229,373
Shareholders' equity $ 154,857 $ 158,097 $ 152,934 $ 155,580 $ 154,428
MBT FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
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QUARTER ENDED DECEMBER 31,
Dollars in thousands (except per share data) 2005 2004
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INTEREST INCOME
Interest and fees on loans $16,983 $15,259
Interest on investment securities-
Tax-exempt 1,272 1,355
Taxable 5,396 4,527
Interest on federal funds sold 29 8
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Total interest income 23,680 21,149
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INTEREST EXPENSE
Interest on deposits 6,955 4,353
Interest on borrowed funds 4,039 3,342
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Total interest expense 10,994 7,695
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NET INTEREST INCOME 12,686 13,454
PROVISION FOR LOAN LOSSES 866 691
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NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES 11,820 12,763
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OTHER INCOME
Income from wealth management services 1,112 1,058
Service charges and other fees 1,502 1,403
Net gain (loss) on sales of securities 22 451
Origination fees on mortgage loans sold 129 118
Bank Owned Life Insurance income 276 244
Other 615 519
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Total other income 3,656 3,793
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OTHER EXPENSES
Salaries and employee benefits 4,333 4,690
Occupancy expense 813 837
Other 2,710 3,180
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Total other expenses 7,856 8,707
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INCOME BEFORE PROVISION
FOR INCOME TAXES 7,620 7,849
PROVISION FOR INCOME TAXES 1,980 2,407
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NET INCOME $ 5,640 $ 5,442
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BASIC EARNINGS PER COMMON SHARE $ 0.32 $ 0.32
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DILUTED EARNINGS PER COMMON SHARE $ 0.32 $ 0.31
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DIVIDENDS DECLARED PER COMMON SHARE $ 0.17 $ 0.16
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MBT FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
- --------------------------------------------------------------------------------
YEAR ENDED DECEMBER 31,
Dollars in thousands (except per share data) 2005 2004
- -----------------------------------------------------------------------------
INTEREST INCOME
Interest and fees on loans $64,578 $57,660
Interest on investment securities-
Tax-exempt 5,036 5,613
Taxable 19,864 16,420
Interest on federal funds sold 217 10
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Total interest income 89,695 79,703
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INTEREST EXPENSE
Interest on deposits 23,578 14,923
Interest on borrowed funds 15,005 12,075
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Total interest expense 38,583 26,998
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NET INTEREST INCOME 51,112 52,705
PROVISION FOR LOAN LOSSES 6,166 2,491
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NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES 44,946 50,214
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OTHER INCOME
Income from wealth management services 4,244 3,746
Service charges and other fees 5,833 5,476
Net gain on sales of securities 295 567
Origination fees on mortgage loans sold 666 578
Bank Owned Life Insurance income 1,100 1,371
Other 2,311 2,038
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Total other income 14,449 13,776
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OTHER EXPENSES
Salaries and employee benefits 18,248 18,109
Occupancy expense 3,320 3,029
Other 12,250 11,478
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Total other expenses 33,818 32,616
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INCOME BEFORE PROVISION
FOR INCOME TAXES 25,577 31,374
PROVISION FOR INCOME TAXES 7,118 8,775
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NET INCOME $18,459 $22,599
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BASIC EARNINGS PER COMMON SHARE $ 1.06 $ 1.30
=============================================================================
DILUTED EARNINGS PER COMMON SHARE $ 1.06 $ 1.29
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DIVIDENDS DECLARED PER COMMON SHARE $ 0.66 $ 0.62
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MBT FINANCIAL CORP.
CONSOLIDATED BALANCE SHEETS - UNAUDITED
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DECEMBER 31, DECEMBER 31,
Dollars in thousands 2005 2004
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ASSETS
Cash and Cash Equivalents
Cash and due from banks $ 32,330 $ 20,540
Federal funds sold 5,000 14,000
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Total cash and cash equivalents 37,330 34,540
Securities - Held to Maturity 76,467 84,141
Securities - Available for Sale 444,021 408,353
Federal Home Loan Bank stock - at cost 13,221 12,947
Loans held for sale 434 778
Loans - Net 975,992 931,303
Accrued interest receivable and other assets 28,488 22,895
Bank Owned Life Insurance 36,252 35,152
Premises and Equipment - Net 26,631 22,170
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Total assets $ 1,638,836 $ 1,552,279
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LIABILITIES
Deposits:
Non-interest bearing $ 178,116 $ 149,469
Interest-bearing 1,006,594 951,242
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Total deposits 1,184,710 1,100,711
Federal Home Loan Bank advances 256,500 256,500
Federal funds purchased -- --
Repurchase agreements 35,000 30,000
Interest payable and other liabilities 10,527 9,722
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Total liabilities 1,486,737 1,396,933
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STOCKHOLDERS' EQUITY
Common stock (no par value) -- --
Additional paid-in capital 14,417 19,806
Retained Earnings 142,685 135,647
Accumulated other comprehensive income (5,003) (107)
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Total stockholders' equity 152,099 155,346
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Total liabilities and stockholders' equity $ 1,638,836 $ 1,552,279
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