EXHIBIT 99
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[MBT FINANCIAL CORP LOGO]
MBT FINANCIAL CORP. REPORTS FIRST QUARTER 2006 EARNINGS
MONROE, MICH., April 12, 2006 -- MBT Financial Corp., (Nasdaq: MBTF), the parent
company of Monroe Bank & Trust, reported first quarter net income of $4.73
million, a decrease of 3.1% from the $4.88 million reported for the first
quarter of 2005. Diluted earnings per share were unchanged at $0.28. Net
Interest Income for the quarter declined from $12.6 million to $12.2 million
even though the average earning assets increased 3.4% as the fully taxable
equivalent net interest margin declined from 3.62% to 3.35%.
H. Douglas Chaffin, President and CEO, commented, "The flattening of the yield
curve that we experienced in 2005 became an inversion in the first quarter of
2006, putting additional pressure on our net interest margin. Fortunately, we
were able to increase our non interest income, excluding securities gains, by
8.6% and decrease our non interest expenses by 2.7%. As a result, our Efficiency
Ratio remains among the best in the industry at 52.22%."
Mr. Chaffin further commented on the Bank's continuing progress at improving
asset quality. "Annualized Net Charge-offs decreased to 0.04% of average loans
this quarter, compared to 0.89% in the first quarter of 2005 and 0.22% last
quarter. Non-performing assets (NPAs) increased slightly during the last quarter
as non-performing loans increased $365,000 and Other Real Estate Owned increased
$59,000. NPAs now total 1.66% of total assets, up slightly from 1.62% last
quarter, but down significantly from 2.33% a year ago. The Allowance for Loan
Losses was $14.2 million, or 1.42% of total loans at March 31, 2006.
"The interest rate environment worsened in the first quarter, and economic
conditions in southeast Michigan remain weaker than the rest of the country. In
response to this, we began efforts to manage our margin by slowing the growth of
the bank and focusing on growing the loan portfolio faster than total assets. We
plan to fund the loan growth with maturities and sales of investments while we
utilize pricing strategies designed to decrease the amount of funding from
higher cost certificate of deposit products. We are beginning to see some
positive results from this strategy, and we are also pleased with the
improvements in non interest income and expenses. We continue to seek ways to
expand our service area geographically, as well as enhancing our services within
existing markets. Our Wayne County branches continue to grow, and in the first
quarter we announced our intent to build a new branch office on the west side of
Dundee in the fastest growing community in our market. We are also on schedule
to move our commercial loan, wealth management, and various other departments
into our new headquarters building in the third quarter of this year."
Total revenue, comprised of net interest income and non-interest income, was
$15.8 million in the first quarter of 2006, a decrease of 2.0% compared to the
same period of 2005. 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. Although we expect the Federal Reserve to end its string of rate
increases this year, we do not anticipate a significant improvement in the
interest rate environment in 2006. Our strategies with our balance sheet
structure and pricing are designed to prevent further decline in the margin."
Total assets were $1.62 billion at March 31, 2006, an increase of 4.1% from a
year earlier. Loans grew $63.6 million, or 6.8% over the year, funded by deposit
growth of $48.0 million, or 4.4% over the same period.
Shareholders' equity at March 31, 2006 was $149.4 million, a twelve-month
decrease of 2.8%. Average equity to assets for the fourth quarter was 9.27% and
total shares outstanding at quarter end were 17,059,170. Mr. Chaffin concluded,
"Although we are not satisfied with the first 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 first quarter results
on Thursday, April 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 largest in the area. 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
QUARTERLY
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2006 2005 2005 2005 2005
(dollars in thousands except per share data) 1ST QTR 4TH QTR 3RD QTR 2ND QTR 1ST QTR
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EARNINGS
Net interest income $ 12,168 $ 12,686 $ 13,113 $ 12,691 $ 12,622
FTE Net interest income $ 12,650 $ 13,243 $ 13,659 $ 13,253 $ 13,185
Provision for loan and lease losses $ 675 $ 1,606 $ 4,100 $ 600 $ 600
Non-interest income $ 3,584 $ 3,656 $ 3,683 $ 3,664 $ 3,446
Non-interest expense $ 8,489 $ 7,856 $ 9,023 $ 8,210 $ 8,729
Net income $ 4,726 $ 5,160 $ 2,571 $ 5,369 $ 4,879
Basic earnings per share $ 0.28 $ 0.30 $ 0.15 $ 0.31 $ 0.28
Diluted earnings per share $ 0.28 $ 0.29 $ 0.15 $ 0.31 $ 0.28
Average shares outstanding 17,111,913 17,222,943 17,282,699 17,337,452 17,498,000
Average diluted shares outstanding 17,162,737 17,274,577 17,366,349 17,411,942 17,593,705
PERFORMANCE RATIOS
Return on average assets 1.17% 1.26% 0.64% 1.37% 1.26%
Return on average common equity 12.67% 13.22% 6.45% 14.08% 12.72%
Base Margin 3.13% 3.20% 3.32% 3.27% 3.30%
FTE Adjustment 0.13% 0.14% 0.14% 0.15% 0.15%
Loan Fees 0.09% 0.11% 0.15% 0.17% 0.17%
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FTE Net Interest Margin 3.35% 3.45% 3.61% 3.59% 3.62%
Efficiency ratio 52.22% 45.10% 43.09% 49.98% 51.76%
Full-time equivalent employees 416 413 421 423 404
CAPITAL
Average equity to average assets 9.27% 9.54% 9.88% 9.72% 9.92%
Book value per share $ 8.76 $ 8.82 $ 8.93 $ 9.09 $ 8.79
Cash dividend per share $ 0.17 $ 0.17 $ 0.17 $ 0.16 $ 0.16
ASSET QUALITY
Loan Charge-Offs $ 744 $ 1,423 $ 4,575 $ 698 $ 2,644
Loan Recoveries $ 648 $ 877 $ 465 $ 633 $ 559
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Net Charge-Offs $ 96 $ 546 $ 4,110 $ 65 $ 2,085
Allowance for loan and lease losses $ 14,204 $ 13,625 $ 12,565 $ 12,575 $ 12,040
Nonaccrual Loans $ 16,553 $ 16,212 $ 14,872 $ 27,990 $ 27,625
Loans 90 days past due $ 91 $ 101 $ 100 $ 48 $ 101
Restructured loans $ 1,847 $ 1,813 $ 2,731 $ 2,035 $ 2,041
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Total nonperforming loans $ 18,491 $ 18,126 $ 17,703 $ 30,073 $ 29,767
Other real estate owned $ 8,395 $ 8,336 $ 8,894 $ 5,068 $ 6,370
Nonperforming investment securities $ -- $ -- $ -- $ -- $ --
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Total nonperforming assets $ 26,886 $ 26,462 $ 26,597 $ 35,141 $ 36,137
Net loan charge-offs to average loans 0.04% 0.22% 1.70% 0.03% 0.89%
Allowance for losses to total loans 1.42% 1.38% 1.29% 1.30% 1.28%
Nonperforming assets to Gross Loans 2.68% 2.67% 2.73% 3.63% 3.84%
Nonperforming assets to total assets 1.66% 1.62% 1.65% 2.22% 2.33%
Allowance to nonperforming assets 52.83% 51.49% 47.24% 35.78% 33.32%
END OF PERIOD BALANCES
Loans and leases $ 1,003,757 $ 989,311 $ 972,936 $ 966,935 $ 940,155
Total earning assets $ 1,509,020 $ 1,528,020 $ 1,507,371 $ 1,492,957 $ 1,459,091
Total assets $ 1,615,099 $ 1,638,356 $ 1,610,286 $ 1,583,433 $ 1,551,607
Deposits $ 1,147,385 $ 1,184,710 $ 1,145,411 $ 1,106,180 $ 1,099,393
Interest Bearing Liabilities $ 1,294,008 $ 1,298,094 $ 1,295,735 $ 1,260,731 $ 1,243,904
Shareholders' equity $ 149,392 $ 151,619 $ 154,219 $ 157,140 $ 153,618
Total Shares Outstanding 17,059,170 17,197,116 17,272,923 17,285,950 17,472,389
AVERAGE BALANCES
Loans and leases $ 997,756 $ 977,770 $ 969,498 $ 953,503 $ 949,978
Total earning assets $ 1,530,018 $ 1,523,391 $ 1,499,601 $ 1,479,798 $ 1,475,802
Total assets $ 1,631,602 $ 1,623,108 $ 1,600,591 $ 1,572,992 $ 1,567,950
Deposits $ 1,171,907 $ 1,163,964 $ 1,139,831 $ 1,104,715 $ 1,117,572
Interest Bearing Liabilities $ 1,308,967 $ 1,299,820 $ 1,279,137 $ 1,259,412 $ 1,253,664
Shareholders' equity $ 151,268 $ 154,857 $ 158,097 $ 152,934 $ 155,580
</Table>
MBT FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
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<Table>
<Caption>
QUARTER ENDED MARCH 31,
Dollars in thousands (except per share data) 2006 2005
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INTEREST INCOME
Interest and fees on loans $ 17,169 $ 15,033
Interest on investment securities-
Tax-exempt 1,157 1,258
Taxable 5,348 4,499
Interest on federal funds sold 54 129
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Total interest income 23,728 20,919
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INTEREST EXPENSE
Interest on deposits 7,497 4,920
Interest on borrowed funds 4,063 3,377
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Total interest expense 11,560 8,297
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NET INTEREST INCOME 12,168 12,622
PROVISION FOR LOAN LOSSES 675 600
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NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES 11,493 12,022
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OTHER INCOME
Income from trust services 1,062 1,063
Service charges and other fees 1,464 1,307
Net gain (loss) on sales of securities 20 163
Origination fees on mortgage loans sold 141 107
Bank Owned Life Insurance income 283 274
Other 614 532
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Total other income 3,584 3,446
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OTHER EXPENSES
Salaries and employee benefits 5,178 4,672
Occupancy expense 767 949
Other 2,544 3,108
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Total other expenses 8,489 8,729
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INCOME BEFORE PROVISION
FOR INCOME TAXES 6,588 6,739
PROVISION FOR INCOME TAXES 1,862 1,860
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NET INCOME $ 4,726 $ 4,879
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BASIC EARNINGS PER COMMON SHARE $ 0.28 $ 0.28
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DILUTED EARNINGS PER COMMON SHARE $ 0.28 $ 0.28
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DIVIDENDS DECLARED PER COMMON SHARE $ 0.17 $ 0.16
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</Table>
MBT FINANCIAL CORP.
CONSOLIDATED BALANCE SHEETS - UNAUDITED
<Table>
<Caption>
MARCH 31, DECEMBER 31, MARCH 31,
Dollars in thousands 2006 2005 2005
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ASSETS
Cash and Cash Equivalents
Cash and due from banks $ 25,182 $ 32,330 $ 21,311
Federal funds sold -- 5,000 --
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Total cash and cash equivalents 25,182 37,330 21,311
Securities - Held to Maturity 67,431 76,467 76,430
Securities - Available for Sale 424,611 444,021 429,422
Federal Home Loan Bank stock - at cost 13,221 13,221 13,084
Loans held for sale 377 434 492
Loans - Net 989,176 975,252 927,623
Accrued interest receivable and other assets 30,236 28,748 25,164
Bank Owned Life Insurance 36,534 36,252 35,426
Premises and Equipment - Net 28,331 26,631 22,655
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Total assets $ 1,615,099 $ 1,638,356 $ 1,551,607
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LIABILITIES
Deposits:
Non-interest bearing $ 160,177 $ 178,116 $ 143,289
Interest-bearing 987,208 1,006,594 956,104
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Total deposits 1,147,385 1,184,710 1,099,393
Federal Home Loan Bank advances 256,500 256,500 256,500
Federal funds purchased 15,300 -- 1,300
Repurchase agreements 35,000 35,000 30,000
Interest payable and other liabilities 11,522 10,527 10,796
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Total liabilities 1,465,707 1,486,737 1,397,989
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STOCKHOLDERS' EQUITY
Common stock (no par value) -- -- --
Additional paid-in capital 12,134 14,417 19,733
Retained Earnings 144,030 142,205 137,730
Accumulated other comprehensive income (6,772) (5,003) (3,845)
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Total stockholders' equity 149,392 151,619 153,618
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Total liabilities and stockholders' equity $ 1,615,099 $ 1,638,356 $ 1,551,607
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</Table>