EXHIBIT 99
(MBT LOGO)
MBT FINANCIAL CORP
REVISION OF FOURTH QUARTER
AND FULL YEAR 2005 EARNINGS ANNOUNCEMENT
Monroe, Michigan, March 7, 2006 - MBT Financial Corp. (Nasdaq: MBTF), the parent
company of Monroe Bank & Trust, today issued an adjustment to its fourth quarter
and full year 2005 earnings release dated January 12, 2006. The adjustment
relates to the Company's recognition of the potential impairment of a large loan
and the Company's corresponding increase in the amount of its Allowance for Loan
and Lease Losses (ALLL) at December 31, 2005 to take into account the potential
impairment of the loan.
During the ongoing finalization of its financial statements and preparation of
its 10-K for the year ended December 31, 2005 and subsequent to the January 12,
2006 press release, MBT obtained information regarding the financial condition
of a commercial loan customer that was inconsistent with financial information
previously provided by the customer. As a consequence, Management determined
that the loan may be impaired and that an additional provision of $740,000 to
MBT's ALLL in the fourth quarter of 2005 was warranted.
This change affects MBT's unaudited financial statements for the three month and
one year periods ended December 31, 2005. Net income for the fourth quarter and
year ended December 31, 2005 was reduced by $480,000, or a $.02 decrease to
previously reported basic earnings per share and a $.03 decrease to previously
reported diluted earnings per share. Therefore, MBT Financial Corp.'s revised
net income was $5,160,000 for the fourth quarter of 2005 and $17,979,000 for the
year ended December 31, 2005. For the fourth quarter 2005, basic and diluted
earnings per share were $.30 and $.29 respectively, while for the full year
2005, basic earnings per share were $1.04 and diluted earnings per share were
$1.03.
These changes will be reflected in MBT Financial Corp.'s 10-K for the year ended
December 31, 2005, which will be filed on or before March 16, 2006. We have set
forth below MBT's consolidated financial highlights - unaudited, consolidated
balance sheets - unaudited, and consolidated statements of income - unaudited
for the fourth quarter and full year 2005. This data replaces the consolidated
financial highlights - unaudited, consolidated balance sheets - unaudited, and
consolidated statements of income - unaudited, contained in MBT Financial
Corp.'s previous earnings release of January 12, 2006.
MBT FINANCIAL CORP.
CONSOLIDATED FINANCIAL HIGHLIGHTS - UNAUDITED
QUARTERLY
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2005 2005 2005 2005 2004
4TH QTR 3RD QTR 2ND QTR 1ST QTR 4TH QTR
----------- ----------- ----------- ----------- -----------
(dollars in thousands except per
share data)
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 $ 1,606 $ 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 $ 5,160 $ 2,571 $ 5,369 $ 4,879 $ 5,442
Basic earnings per share $ 0.30 $ 0.15 $ 0.31 $ 0.28 $ 0.32
Diluted earnings per share $ 0.29 $ 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 1.26% 0.64% 1.37% 1.26% 1.40%
Return on average common equity 13.22% 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 $ 8.82 $ 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 $ 13,625 $ 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 1.38% 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 1.62% 1.65% 2.22% 2.33% 2.57%
Allowance to nonperforming assets 51.49% 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 $ 1,638,356 $ 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 $ 151,619 $ 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 $ 1,623,108 $ 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 $ 154,847 $ 158,097 $ 152,934 $ 155,580 $ 154,428
MBT FINANCIAL CORP.
CONSOLIDATED BALANCE SHEET - UNAUDITED
DECEMBER 31, DECEMBER 31,
2005 2004
------------ ------------
Dollars in thousands
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 975,252 931,303
Accrued interest receivable and other assets 28,748 22,895
Bank Owned Life Insurance 36,252 35,152
Premises and Equipment - Net 26,631 22,170
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Total assets $1,638,356 $1,552,279
========== ==========
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
========== ==========
STOCKHOLDERS' EQUITY
Common stock (no par value) -- --
Additional paid-in capital 14,417 19,806
Retained Earnings 142,205 135,647
Accumulated other comprehensive income (5,003) (107)
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Total stockholders' equity 151,619 155,346
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Total liabilities and stockholders' equity $1,638,356 $1,552,279
========== ==========
MBT FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
QUARTER ENDED DECEMBER 31,
--------------------------
2005 2004
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Dollars in thousands
(except per share data)
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
======= =======
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
======= =======
NET INTEREST INCOME 12,686 13,454
PROVISION FOR LOAN LOSSES 1,606 691
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NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES 11,080 12,763
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OTHER INCOME
Income from trust 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
======= =======
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 6,880 7,849
PROVISION FOR INCOME TAXES 1,720 2,407
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NET INCOME $ 5,160 $ 5,442
======= =======
BASIC EARNINGS PER COMMON SHARE $ 0.30 $ 0.32
======= =======
DILUTED EARNINGS PER COMMON SHARE $ 0.29 $ 0.31
======= =======
DIVIDENDS DECLARED PER COMMON SHARE $ 0.17 $ 0.16
======= =======
MBT FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
YEAR ENDED DECEMBER 31,
-----------------------
2005 2004
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Dollars in thousands (except per share data)
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
======= =======
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
======= =======
NET INTEREST INCOME 51,112 52,705
PROVISION FOR LOAN LOSSES 6,906 2,491
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NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES 44,206 50,214
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OTHER INCOME
Income from trust 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
======= =======
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 24,837 31,374
PROVISION FOR INCOME TAXES 6,858 8,775
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NET INCOME $17,979 $22,599
======= =======
BASIC EARNINGS PER COMMON SHARE $ 1.04 $ 1.30
======= =======
DILUTED EARNINGS PER COMMON SHARE $ 1.03 $ 1.29
======= =======
DIVIDENDS DECLARED PER COMMON SHARE $ 0.66 $ 0.62
======= =======
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 area's 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.