EXHIBIT 99
[MBT FINANCIAL CORP LOGO]
MBT FINANCIAL CORP. REPORTS SECOND QUARTER 2006 LOSS
MONROE, MICH., July 19, 2006 -- MBT Financial Corp., (Nasdaq: MBTF), the parent
company of Monroe Bank & Trust, reported a second quarter net loss of
$3,576,000, or $0.21 cents per share, basic and diluted. This is a decrease from
the $0.31 per share profit earned in the second quarter of 2005. Basic and
diluted year to date earnings were $0.07, down from $0.59 in the first six
months of 2005. The loss in the second quarter was due to two significant credit
related charges and a write down of investment securities. The investments were
written down prior to restructuring a portion of the investment portfolio early
in the third quarter of 2006. The restructuring, which involved the sale of
approximately $83 million in federal agency securities at a loss of $5.0
million, is expected to contribute approximately 11 basis points to the net
interest margin in the third quarter.
H. Douglas Chaffin, President and CEO, commented, "In the second quarter we
increased the Provision for Loan Losses by $6 million due to a single long time
problem credit relationship returning to non accrual status. We also had an
increase of $1.6 million in losses and expenses related to Other Real Estate
Owned, including a write down of $1.0 million of a large foreclosed asset that
we expect to dispose of in the third quarter."
Mr. Chaffin further commented on the Company's core earnings for the quarter.
"Net Interest Income decreased $769,000 compared to the second quarter of 2005.
The persistent flattening of the yield curve that began early in 2005 has put
considerable pressure on net interest margins at most banks, with funding costs
rising faster than asset yields. We have been managing the increase in our
funding costs by pricing our deposit products to be more closely aligned with
the national market, which is low in relation to our local competition. This has
restricted our growth. However, we continue to experience growth in non interest
income. In spite of a 31.3% decrease in income from mortgage loan sales, non
interest income, excluding securities gains, increased 4.1% compared to the
second quarter of 2005."
The Company continued its efforts to reduce its non performing assets (NPAs).
Excluding the one credit returning to NPA status, NPAs would have decreased $3.0
million during the quarter. The Company has an agreement pending to resolve a
large OREO credit in the third quarter and it is investigating additional
measures to significantly reduce its NPAs this year. The Allowance for Loan
Losses was $17.5 million, or 1.71% of total loans at June 30, 2006.
Mr. Chaffin added, "The interest rate environment and the economic conditions in
southeast Michigan are not favorable for bank growth. We do see some areas of
growth in our markets, and we have begun construction on a new branch location
in Dundee, Michigan, the fastest growing community in Monroe County. In
addition, our Downriver offices continue to provide a significant portion of new
loan volume as we continue to grow market share among traditional commercial and
industrial businesses. We are also pleased to report that we are on schedule to
move into our new headquarters building in downtown Monroe in the third quarter.
The new building adds approximately 45,000 square feet of office space and it
will house our commercial loan, wealth management, and various administrative
departments."
Total assets were $1.60 billion at June 30, 2006, an increase of 1.0% from a
year earlier. Loans grew $57.9 million, or 6.0% over the year, funded by deposit
growth of $9.9 million, or 0.9% over the same period, an increase in borrowings
of $22.3 million, and a decrease of $71.6 million in investment securities.
Shareholders' equity at June 30, 2006 was $138.8 million, a twelve-month
decrease of $18.3 million due to the decrease in the market value of securities
available for sale and the repurchase of over 400,000 shares of stock over the
past twelve
months. Average equity to assets for the second quarter was 9.34% and total
shares outstanding at quarter end were 16,871,683. Mr. Chaffin concluded,
"Although we are disappointed with the second quarter performance, we believe
that our strategies to improve interest income and non performing assets will
enable us to resume earnings growth in 2007. We are fortunate to have a strong
capital position that enables us to take advantage of strategic opportunities,
such as the aforementioned investment portfolio restructuring and to consider
more aggressive options toward resolving NPAs. Due to the strength of our
capital position, we do not anticipate any changes in our ability to continue
dividends at current levels."
CONFERENCE CALL
MBT Financial Corp. will hold a conference call to discuss second quarter
results on Thursday, July 20, 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 $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 25 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, change in the financial and securities markets, including changes
with respect to the market value of our financial assets, the availability of
and costs associated with sources of liquidity, and the ability of the Company
to resolve or dispose of problem loans. The Company undertakes no obligation to
update or clarify forward-looking statements, whether as a result of new
information, future events or otherwise.
<Table>
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
</Table>
MBT FINANCIAL CORP.
CONSOLIDATED FINANCIAL HIGHLIGHTS - UNAUDITED
<Table>
<Caption>
QUARTERLY
-------------------------------------------------------------------------------
2006 2006 2005 2005 2005
(dollars in thousands except per share data) 2ND QTR 1ST QTR 4TH QTR 3RD QTR 2ND QTR
-------------------------------------------------------------------------------
EARNINGS
Net interest income $ 11,922 $ 12,168 $ 12,686 $ 13,113 $ 12,691
FTE Net interest income $ 12,369 $ 12,650 $ 13,243 $ 13,659 $ 13,253
Provision for loan and lease losses $ 6,675 $ 675 $ 1,606 $ 4,100 $ 600
Non-interest income $ (1,240) $ 3,584 $ 3,656 $ 3,683 $ 3,664
Non-interest expense $ 10,052 $ 8,489 $ 7,856 $ 9,023 $ 8,210
Net income (loss) $ (3,576) $ 4,726 $ 5,160 $ 2,571 $ 5,369
Basic earnings (loss) per share $ (0.21) $ 0.28 $ 0.30 $ 0.15 $ 0.31
Diluted earnings (loss) per share $ (0.21) $ 0.28 $ 0.29 $ 0.15 $ 0.31
Average shares outstanding 16,969,365 17,111,913 17,222,943 17,282,699 17,337,452
Average diluted shares outstanding 17,000,563 17,162,737 17,274,577 17,366,349 17,411,942
PERFORMANCE RATIOS
Return on average assets -0.90% 1.17% 1.26% 0.64% 1.37%
Return on average common equity -9.61% 12.67% 13.22% 6.45% 14.08%
Base Margin 3.08% 3.13% 3.20% 3.32% 3.27%
FTE Adjustment 0.12% 0.13% 0.14% 0.14% 0.15%
Loan Fees 0.09% 0.09% 0.11% 0.15% 0.17%
----------- ----------- ----------- ----------- -----------
FTE Net Interest Margin 3.29% 3.35% 3.45% 3.61% 3.59%
Efficiency ratio 53.73% 52.22% 45.10% 43.09% 49.98%
Full-time equivalent employees 418 416 413 421 423
CAPITAL
Average equity to average assets 9.34% 9.27% 9.54% 9.88% 9.72%
Book value per share $ 8.23 $ 8.76 $ 8.82 $ 8.93 $ 9.09
Cash dividend per share $ 0.17 $ 0.17 $ 0.17 $ 0.17 $ 0.16
ASSET QUALITY
Loan Charge-Offs $ 3,880 $ 744 $ 1,423 $ 4,575 $ 698
Loan Recoveries $ 504 $ 648 $ 877 $ 465 $ 633
----------- ----------- ----------- ----------- -----------
Net Charge-Offs $ 3,376 $ 96 $ 546 $ 4,110 $ 65
Allowance for loan and lease losses $ 17,502 $ 14,204 $ 13,625 $ 12,565 $ 12,575
Nonaccrual Loans $ 22,132 $ 16,553 $ 16,212 $ 14,872 $ 27,990
Loans 90 days past due $ 85 $ 91 $ 101 $ 100 $ 48
Restructured loans $ 2,485 $ 1,847 $ 1,813 $ 2,731 $ 2,035
----------- ----------- ----------- ----------- -----------
Total nonperforming loans $ 24,702 $ 18,491 $ 18,126 $ 17,703 $ 30,073
Other real estate owned $ 7,748 $ 8,395 $ 8,336 $ 8,894 $ 5,068
Nonperforming investment securities $ -- $ -- $ -- $ -- $ --
----------- ----------- ----------- ----------- -----------
Total nonperforming assets $ 32,450 $ 26,886 $ 26,462 $ 26,597 $ 35,141
Net loan charge-offs to average loans 1.33% 0.04% 0.22% 1.70% 0.03%
Allowance for losses to total loans 1.71% 1.42% 1.38% 1.29% 1.30%
Nonperforming assets to Gross Loans 3.17% 2.68% 2.67% 2.73% 3.63%
Nonperforming assets to total assets 2.03% 1.66% 1.62% 1.65% 2.22%
Allowance to nonperforming assets 53.94% 52.83% 51.49% 47.24% 35.78%
END OF PERIOD BALANCES
Loans and leases $ 1,024,813 $ 1,003,757 $ 989,311 $ 972,936 $ 966,935
Total earning assets $ 1,479,252 $ 1,509,020 $ 1,528,020 $ 1,507,371 $ 1,492,957
Total assets $ 1,598,665 $ 1,615,099 $ 1,638,356 $ 1,610,286 $ 1,583,433
Deposits $ 1,116,030 $ 1,147,385 $ 1,184,710 $ 1,145,411 $ 1,106,180
Interest Bearing Liabilities $ 1,305,280 $ 1,294,008 $ 1,298,094 $ 1,295,735 $ 1,260,731
Shareholders' equity $ 138,823 $ 149,392 $ 151,619 $ 154,219 $ 157,140
Total Shares Outstanding 16,871,683 17,059,170 17,197,116 17,272,923 17,285,950
AVERAGE BALANCES
Loans and leases $ 1,017,097 $ 997,756 $ 977,770 $ 969,498 $ 953,503
Total earning assets $ 1,506,062 $ 1,530,018 $ 1,523,391 $ 1,499,601 $ 1,479,798
Total assets $ 1,597,107 $ 1,631,602 $ 1,623,108 $ 1,600,591 $ 1,572,992
Deposits $ 1,115,672 $ 1,171,907 $ 1,163,964 $ 1,139,831 $ 1,104,715
Interest Bearing Liabilities $ 1,298,117 $ 1,308,967 $ 1,299,820 $ 1,279,137 $ 1,259,412
Shareholders' equity $ 149,195 $ 151,268 $ 154,857 $ 158,097 $ 152,934
</Table>
MBT FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
<Table>
<Caption>
- --------------------------------------------------------------------------------------
QUARTER ENDED JUNE 30,
Dollars in thousands (except per share data) 2006 2005
- --------------------------------------------------------------------------------------
INTEREST INCOME
Interest and fees on loans $ 17,840 $ 15,721
Interest on investment securities-
Tax-exempt 1,085 1,264
Taxable 5,014 4,932
Interest on federal funds sold
1 2
- --------------------------------------------------------------------------------------
Total interest income 23,940 21,919
- --------------------------------------------------------------------------------------
INTEREST EXPENSE
Interest on deposits 7,266 5,485
Interest on borrowed funds 4,752 3,743
- --------------------------------------------------------------------------------------
Total interest expense 12,018 9,228
- --------------------------------------------------------------------------------------
NET INTEREST INCOME 11,922 12,691
PROVISION FOR LOAN LOSSES 6,675 600
- --------------------------------------------------------------------------------------
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES 5,247 12,091
- --------------------------------------------------------------------------------------
OTHER INCOME
Income from trust services 1,070 1,024
Service charges and other fees 1,566 1,469
Net gain (loss) on sales of securities (4,927) 123
Origination fees on mortgage loans sold 136 198
Bank Owned Life Insurance income 292 274
Other 623 576
- --------------------------------------------------------------------------------------
Total other income (1,240) 3,664
- --------------------------------------------------------------------------------------
OTHER EXPENSES
Salaries and employee benefits 5,340 4,875
Occupancy expense 712 835
Other 4,000 2,500
- --------------------------------------------------------------------------------------
Total other expenses 10,052 8,210
- --------------------------------------------------------------------------------------
INCOME (LOSS) BEFORE INCOME TAXES (6,045) 7,545
INCOME TAX EXPENSE (BENEFIT) (2,469) 2,176
- --------------------------------------------------------------------------------------
NET INCOME (LOSS) $ (3,576) $ 5,369
- --------------------------------------------------------------------------------------
BASIC EARNINGS (LOSS) PER COMMON SHARE $ (0.21) $ 0.31
- --------------------------------------------------------------------------------------
DILUTED EARNINGS (LOSS) PER COMMON SHARE $ (0.21) $ 0.31
- --------------------------------------------------------------------------------------
DIVIDENDS DECLARED PER COMMON SHARE $ 0.17 $ 0.16
- --------------------------------------------------------------------------------------
</Table>
MBT FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
- --------------------------------------------------------------------------------
<Table>
<Caption>
SIX MONTHS ENDED JUNE 30,
Dollars in thousands (except per share data) 2006 2005
- -------------------------------------------------------------------------------------------------------
INTEREST INCOME
Interest and fees on loans $ 35,009 $ 30,754
Interest on investment securities-
Tax-exempt 2,242 2,522
Taxable 10,362 9,431
Interest on federal funds sold 55 131
- -------------------------------------------------------------------------------------------------------
Total interest income 47,668 42,838
- -------------------------------------------------------------------------------------------------------
INTEREST EXPENSE
Interest on deposits 14,763 10,405
Interest on borrowed funds 8,815 7,120
- -------------------------------------------------------------------------------------------------------
Total interest expense 23,578 17,525
- -------------------------------------------------------------------------------------------------------
NET INTEREST INCOME 24,090 25,313
PROVISION FOR LOAN LOSSES 7,350 1,200
- -------------------------------------------------------------------------------------------------------
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES 16,740 24,113
- -------------------------------------------------------------------------------------------------------
OTHER INCOME
Income from trust services 2,132 2,087
Service charges and other fees 3,030 2,776
Net gain (loss) on sales of securities (4,907) 286
Origination fees on mortgage loans sold 276 304
Bank Owned Life Insurance income 575 548
Other 1,238 1,109
- -------------------------------------------------------------------------------------------------------
Total other income 2,344 7,110
- -------------------------------------------------------------------------------------------------------
OTHER EXPENSES
Salaries and employee benefits 10,518 9,547
Occupancy expense 1,479 1,784
Other 6,544 5,608
- -------------------------------------------------------------------------------------------------------
Total other expenses 18,541 16,939
- -------------------------------------------------------------------------------------------------------
INCOME (LOSS) BEFORE INCOME TAXES 543 14,284
INCOME TAX EXPENSE (BENEFIT) (607) 4,036
- -------------------------------------------------------------------------------------------------------
NET INCOME $ 1,150 $ 10,248
- -------------------------------------------------------------------------------------------------------
BASIC EARNINGS PER COMMON SHARE $ 0.07 $ 0.59
- -------------------------------------------------------------------------------------------------------
DILUTED EARNINGS PER COMMON SHARE $ 0.07 $ 0.59
- -------------------------------------------------------------------------------------------------------
DIVIDENDS DECLARED PER COMMON SHARE $ 0.34 $ 0.32
- -------------------------------------------------------------------------------------------------------
</Table>
MBT FINANCIAL CORP.
CONSOLIDATED BALANCE SHEETS - UNAUDITED
<Table>
<Caption>
JUNE 30, DECEMBER 31, JUNE 30,
Dollars in thousands 2006 2005 2005
- -------------------------------------------------------------------------------------------------------------------
ASSETS
Cash and Cash Equivalents
Cash and due from banks $ 31,049 $ 32,330 $ 23,554
Federal funds sold -- 5,000 --
- -------------------------------------------------------------------------------------------------------------------
Total cash and cash equivalents 31,049 37,330 23,554
Securities - Held to Maturity 62,528 76,467 75,155
Securities - Available for Sale 378,690 444,021 437,646
Federal Home Loan Bank stock - at cost 13,221 13,221 13,221
Loans held for sale 489 434 948
Loans - Net 1,006,822 975,252 953,412
Accrued interest receivable and other assets 35,638 28,748 20,463
Bank Owned Life Insurance 38,965 36,252 35,700
Premises and Equipment - Net 31,263 26,631 23,334
- -------------------------------------------------------------------------------------------------------------------
Total assets $ 1,598,665 $ 1,638,356 $ 1,583,433
- -------------------------------------------------------------------------------------------------------------------
LIABILITIES
Deposits:
Non-interest bearing $ 142,450 $ 178,116 $ 156,449
Interest-bearing 973,580 1,006,594 949,731
- -------------------------------------------------------------------------------------------------------------------
Total deposits 1,116,030 1,184,710 1,106,180
Federal Home Loan Bank advances 256,500 256,500 256,500
Federal funds purchased 35,200 -- 24,500
Repurchase agreements 40,000 35,000 30,000
Other short term borrowings 1,622 -- --
Interest payable and other liabilities 10,490 10,527 9,113
- -------------------------------------------------------------------------------------------------------------------
Total liabilities 1,459,842 1,486,737 1,426,293
- -------------------------------------------------------------------------------------------------------------------
STOCKHOLDERS' EQUITY
Common stock (no par value) -- -- --
Additional paid-in capital 9,190 14,417 16,104
Retained Earnings 137,585 142,205 140,333
Accumulated other comprehensive income (7,952) (5,003) 703
- -------------------------------------------------------------------------------------------------------------------
Total stockholders' equity 138,823 151,619 157,140
- -------------------------------------------------------------------------------------------------------------------
Total liabilities and stockholders' equity $ 1,598,665 $ 1,638,356 $ 1,583,433
- -------------------------------------------------------------------------------------------------------------------
</Table>