EXHIBIT 99.1
(MBT FINANCIAL CORP.(R) LOGO)
MBT FINANCIAL CORP. ANNUAL PROFITS INCREASE
MONROE, MICH., January 22, 2008 - MBT Financial Corp., (Nasdaq: MBTF), the
parent company of Monroe Bank & Trust, reported 2007 net income of $10.3
million, or $0.62 per diluted share, compared to the $3.8 million, or $0.22 per
diluted share earned in 2006. For the fourth quarter the Company reported a loss
of $161,000, or $0.01 per diluted share, compared to a profit of $3.7 million,
or $0.22 per diluted share in the fourth quarter of 2006. The fourth quarter
2007 results were negatively impacted by the need to increase the Allowance for
Loan Losses due to economic weakness and declining real estate values in
southeast Michigan.
H. Douglas Chaffin, President and CEO, commented, "Increasing unemployment in
Michigan, continuing weakness in the business climate, and decreasing property
values caused an interruption in our trend of asset quality improvement in the
second half of 2007. While we have not offered the type of residential real
estate loan products that caused the subprime mortgage crisis, the crisis has
affected property values in our market, and the declining property values
necessitated the increase in our Allowance for Loan Losses."
"Michigan has been in a single state recession, largely related to the struggles
of the domestic automotive industry. Regional economic conditions resulted in a
large increase in problem and non performing assets in the fourth quarter. Most
of these problem assets are concentrated in businesses related to automobile
manufacturing or residential real estate development. Non performing assets
(NPAs) increased from $33.9 million to $46.5 million during the fourth quarter
and total problem assets increased from $66.7 million to $87.5 million. Net
charge offs during the quarter were 1.19% of loans, annualized, and we increased
our allowance for loan losses from 1.38% of loans to 1.62% over the last twelve
months. We continue to actively manage our capital and we reduced our share
repurchase activity significantly in the fourth quarter. This will preserve
capital and enable us to maintain our quarterly dividend while economic
conditions challenge our earnings. Our dividend is providing an annualized
return in excess of 8.0% based on the price of our stock at the end of the
year."
Mr. Chaffin further commented on the Company's earnings for the quarter. "Net
Interest Income decreased $1 million compared to the fourth quarter of 2006 due
to the lower net interest margin and smaller amount of average earning assets.
The decrease in the net interest margin in the fourth quarter of 2007 was
largely due to the increase in non performing assets. While opportunities for
growth in net interest income remain weak, we are increasing our focus on
improving non interest income and controlling non interest expenses. Non
interest income, excluding securities transactions, increased 10.2% compared to
the fourth quarter of 2006 and non interest expenses, net of OREO transactions,
increased 4.5%. During the fourth quarter of 2007 we increased our expense
control efforts, and the recent staff reduction and other initiatives will begin
to produce meaningful results in 2008. We also announced plans to lower costs by
closing a branch location in Monroe and converting two other offices to drive-up
only service."
CONFERENCE CALL
MBT Financial Corp. will hold a conference call to discuss fourth quarter
results on Wednesday, January 23, 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 (800) 860-2442. 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. (NASDAQ: MBTF), 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 full service community banks in
Southeast Michigan, with more than $1.5 billion in assets, offering personal and
business products and services, and complete credit options. MBT's Wealth
Management Group is one of the area's largest trust departments with over $800
Million in assets under management. With 26 offices, 41 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
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.
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
--------------------------------------------------------------- YEAR TO DATE
(dollars in thousands 2007 2007 2007 2007 2006 ------------------------
except per share data) 4TH QTR 3RD QTR 2ND QTR 1ST QTR 4TH QTR 2007 2006
- ---------------------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
EARNINGS
Net interest income $ 10,131 $ 10,668 $ 10,787 $ 11,183 $ 11,165 $ 42,769 $ 46,635
FTE Net interest income $ 10,232 $ 11,011 $ 11,127 $ 11,587 $ 11,604 $ 43,957 $ 48,426
Provision for loan and lease losses $ 4,907 $ 1,000 $ 750 $ 750 $ 1,175 $ 7,407 $ 16,475
Non-interest income $ 3,824 $ 3,928 $ 4,119 $ 3,763 $ 3,475 $ 15,634 $ 9,542
Non-interest expense $ 9,601 $ 9,242 $ 9,279 $ 9,112 $ 8,349 $ 37,234 $ 36,308
Net income (loss) $ (161) $ 3,181 $ 3,535 $ 3,703 $ 3,741 $ 10,258 $ 3,773
Basic earnings (loss) per share $ (0.01) $ 0.20 $ 0.21 $ 0.22 $ 0.22 $ 0.62 $ 0.22
Diluted earnings (loss) per share $ (0.01) $ 0.20 $ 0.21 $ 0.22 $ 0.22 $ 0.62 $ 0.22
Average shares outstanding 16,135,339 16,288,696 16,558,137 16,686,983 16,815,634 16,415,425 16,941,432
Average diluted shares outstanding 16,145,958 16,310,279 16,585,720 16,716,685 16,837,925 16,426,044 16,972,825
PERFORMANCE RATIOS
Return on average assets -0.04% 0.83% 0.94% 0.97% 0.95% 0.67% 0.24%
Return on average common equity -0.48% 9.55% 10.33% 10.92% 10.51% 7.59% 2.59%
Base Margin 2.74% 2.90% 2.98% 3.06% 2.93% 2.92% 3.02%
FTE Adjustment 0.03% 0.10% 0.10% 0.11% 0.12% 0.08% 0.12%
Loan Fees 0.06% 0.08% 0.07% 0.07% 0.09% 0.07% 0.09%
----------- ----------- ----------- ----------- ----------- ----------- -----------
FTE Net Interest Margin 2.83% 3.08% 3.15% 3.24% 3.14% 3.07% 3.23%
Efficiency ratio 60.16% 61.06% 60.74% 58.82% 54.82% 60.19% 54.19%
Full-time equivalent employees 404 426 425 429 415 420 416
CAPITAL
Average equity to average assets 8.66% 8.69% 9.06% 8.91% 9.02% 8.83% 9.14%
Book value per share $ 8.06 $ 8.15 $ 8.00 $ 8.21 $ 8.14 $ 8.06 $ 8.14
Cash dividend per share $ 0.18 $ 0.18 $ 0.18 $ 0.18 $ 0.18 $ 0.72 $ 0.70
ASSET QUALITY
Loan Charge-Offs $ 3,204 $ 1,013 $ 1,082 $ 1,088 $ 1,343 $ 6,387 $ 18,374
Loan Recoveries $ 195 $ 256 $ 343 $ 643 $ 390 $ 1,438 $ 2,039
----------- ----------- ----------- ----------- ----------- ----------- -----------
Net Charge-Offs $ 3,009 $ 757 $ 739 $ 445 $ 953 $ 4,949 $ 16,335
Allowance for loan and lease losses $ 16,222 $ 14,323 $ 14,080 $ 14,069 $ 13,764 $ 16,222 $ 13,764
Nonaccrual Loans $ 30,459 $ 26,440 $ 20,017 $ 19,527 $ 19,152 $ 30,459 $ 19,152
Loans 90 days past due $ 102 $ 105 $ 105 $ 61 $ 69 $ 102 $ 69
Restructured loans $ 3,367 $ 938 $ 1,371 $ 572 $ 888 $ 3,367 $ 888
----------- ----------- ----------- ----------- ----------- ----------- -----------
Total non performing loans $ 33,928 $ 27,483 $ 21,493 $ 20,160 $ 20,109 $ 33,928 $ 20,109
Other real estate owned & other
assets $ 12,565 $ 6,389 $ 3,064 $ 2,598 $ 2,432 $ 12,565 $ 2,432
----------- ----------- ----------- ----------- ----------- ----------- -----------
Total non performing assets $ 46,493 $ 33,872 $ 24,557 $ 22,758 $ 22,541 $ 46,493 $ 22,541
Problem Loans Still Performing $ 41,022 $ 32,822 $ 34,859 $ 35,918 $ 39,650 $ 41,022 $ 39,650
----------- ----------- ----------- ----------- ----------- ----------- -----------
Total Problem Assets $ 87,515 $ 66,694 $ 59,416 $ 58,676 $ 62,191 $ 87,515 $ 62,191
Net loan charge-offs to average loans 1.19% 0.30% 0.30% 0.18% 0.38% 0.49% 1.62%
Allowance for losses to total loans 1.62% 1.42% 1.40% 1.42% 1.38% 1.62% 1.38%
Non performing loans to Gross Loans 3.39% 2.72% 2.14% 2.04% 2.01% 3.39% 2.01%
Non performing assets to total assets 2.98% 2.17% 1.62% 1.47% 1.44% 2.98% 1.44%
Allowance to non performing loans 47.81% 52.12% 65.51% 69.79% 68.45% 47.81% 68.45%
END OF PERIOD BALANCES
Loans and leases $ 1,002,259 $ 1,008,875 $ 1,002,248 $ 989,322 $ 998,998 $ 1,002,259 $ 998,998
Total earning assets $ 1,440,317 $ 1,439,366 $ 1,402,808 $ 1,438,870 $ 1,451,109 $ 1,440,317 $ 1,451,109
Total assets $ 1,559,351 $ 1,560,234 $ 1,516,026 $ 1,547,709 $ 1,566,819 $ 1,559,351 $ 1,566,819
Deposits $ 1,109,980 $ 1,110,074 $ 1,078,431 $ 1,096,210 $ 1,116,057 $ 1,109,980 $ 1,116,057
Interest Bearing Liabilities $ 1,273,665 $ 1,273,695 $ 1,224,061 $ 1,251,379 $ 1,257,369 $ 1,273,665 $ 1,257,369
Shareholders' equity $ 129,992 $ 131,651 $ 131,056 $ 136,611 $ 136,062 $ 129,992 $ 136,062
Total Shares Outstanding 16,124,997 16,148,863 16,379,602 16,644,463 16,713,960 16,124,997 16,713,960
AVERAGE BALANCES
Loans and leases $ 1,002,948 $ 1,010,604 $ 994,093 $ 993,498 $ 1,001,560 $ 1,000,340 $ 1,010,585
Total earning assets $ 1,436,545 $ 1,419,329 $ 1,420,183 $ 1,446,247 $ 1,467,244 $ 1,430,519 $ 1,495,845
Total assets $ 1,539,474 $ 1,520,222 $ 1,516,209 $ 1,544,515 $ 1,565,703 $ 1,530,064 $ 1,593,078
Deposits $ 1,094,346 $ 1,086,050 $ 1,075,960 $ 1,099,850 $ 1,112,521 $ 1,089,028 $ 1,128,183
Interest Bearing Liabilities $ 1,264,772 $ 1,248,691 $ 1,236,703 $ 1,263,342 $ 1,280,144 $ 1,253,368 $ 1,294,591
Shareholders' equity $ 133,391 $ 132,088 $ 137,322 $ 137,573 $ 141,240 $ 135,074 $ 145,627
MBT FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
QUARTER ENDED DECEMBER 31,
--------------------------
Dollars in thousands (except per share data) 2007 2006
- -------------------------------------------- ------- -------
INTEREST INCOME
Interest and fees on loans $17,617 $17,861
Interest on investment securities-
Tax-exempt 422 1,073
Taxable 4,947 5,145
Interest on federal funds sold 3 11
------- -------
Total interest income 22,989 24,090
------- -------
INTEREST EXPENSE
Interest on deposits 8,209 8,132
Interest on borrowed funds 4,649 4,793
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Total interest expense 12,858 12,925
------- -------
NET INTEREST INCOME 10,131 11,165
PROVISION FOR LOAN LOSSES 4,907 1,175
------- -------
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES 5,224 9,990
------- -------
OTHER INCOME
Income from trust services 1,188 1,076
Service charges and other fees 1,603 1,589
Net gain (loss) on sales of securities (176) (156)
Origination fees on mortgage loans sold 128 132
Bank Owned Life Insurance income 335 257
Other 746 577
------- -------
Total other income 3,824 3,475
------- -------
OTHER EXPENSES
Salaries and employee benefits 4,956 4,326
Occupancy expense 897 829
Equipment expense 786 828
Marketing expense 408 554
Professional fees 363 605
Net (gain) loss on other real estate owned 800 (75)
Other 1,391 1,282
------- -------
Total other expenses 9,601 8,349
------- -------
INCOME (LOSS) BEFORE INCOME TAXES (553) 5,116
INCOME TAX EXPENSE (BENEFIT) (392) 1,375
------- -------
NET INCOME (LOSS) $ (161) $ 3,741
======= =======
BASIC EARNINGS (LOSS) PER COMMON SHARE $ (0.01) $ 0.22
======= =======
DILUTED EARNINGS (LOSS) PER COMMON SHARE $ (0.01) $ 0.22
======= =======
DIVIDENDS DECLARED PER COMMON SHARE $ 0.18 $ 0.18
======= =======
MBT FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF INCOME
YEAR ENDED DECEMBER 31,
--------------------------
Dollars in thousands (except per share data) 2007 (UNAUDITED) 2006
- -------------------------------------------- ---------------- -------
INTEREST INCOME
Interest and fees on loans $71,245 $70,950
Interest on investment securities-
Tax-exempt 3,177 4,356
Taxable 18,985 20,546
Interest on federal funds sold 144 71
------- -------
Total interest income 93,551 95,923
------- -------
INTEREST EXPENSE
Interest on deposits 32,422 30,849
Interest on borrowed funds 18,360 18,439
------- -------
Total interest expense 50,782 49,288
------- -------
NET INTEREST INCOME 42,769 46,635
PROVISION FOR LOAN LOSSES 7,407 16,475
------- -------
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES 35,362 30,160
------- -------
OTHER INCOME
Income from trust services 4,577 4,268
Service charges and other fees 6,301 6,210
Net gain (loss) on sales of securities (80) (5,057)
Origination fees on mortgage loans sold 690 560
Bank Owned Life Insurance income 1,294 1,142
Other 2,852 2,419
------- -------
Total other income 15,634 9,542
------- -------
OTHER EXPENSES
Salaries and employee benefits 21,367 19,572
Occupancy expense 3,466 3,113
Equipment expense 3,261 3,096
Marketing expense 1,455 1,623
Professional fees 1,508 1,835
Net loss on other real estate owned 822 1,755
Other 5,355 5,314
------- -------
Total other expenses 37,234 36,308
------- -------
INCOME BEFORE INCOME TAXES 13,762 3,394
INCOME TAX EXPENSE (BENEFIT) 3,504 (379)
------- -------
NET INCOME $10,258 $ 3,773
======= =======
BASIC EARNINGS PER COMMON SHARE $ 0.62 $ 0.22
======= =======
DILUTED EARNINGS PER COMMON SHARE $ 0.62 $ 0.22
======= =======
DIVIDENDS DECLARED PER COMMON SHARE $ 0.72 $ 0.70
======= =======
MBT FINANCIAL CORP.
CONSOLIDATED BALANCE SHEETS
DEC. 31, 2007 DECEMBER 31,
Dollars in thousands (UNAUDITED) 2006
- -------------------- ------------- ------------
ASSETS
Cash and Cash Equivalents
Cash and due from banks $ 25,113 $ 27,903
Federal funds sold -- --
---------- ----------
Total cash and cash equivalents 25,113 27,903
Securities - Held to Maturity 44,734 64,938
Securities - Available for Sale 380,238 374,087
Federal Home Loan Bank stock - at cost 13,086 13,086
Loans held for sale 1,431 721
Loans - Net 984,606 984,513
Accrued interest receivable and other assets 34,915 27,961
Bank Owned Life Insurance 42,509 39,631
Premises and Equipment - Net 32,719 33,979
---------- ----------
Total assets $1,559,351 $1,566,819
========== ==========
LIABILITIES
Deposits:
Non-interest bearing $ 141,115 $ 158,688
Interest-bearing 968,865 957,369
---------- ----------
Total deposits 1,109,980 1,116,057
Federal Home Loan Bank advances 256,500 256,500
Federal funds purchased 13,300 3,500
Repurchase agreements 35,000 40,000
Interest payable and other liabilities 14,579 14,700
---------- ----------
Total liabilities 1,429,359 1,430,757
---------- ----------
SHAREHOLDERS' EQUITY
Common stock (no par value) -- --
Additional paid-in capital -- 6,979
Retained Earnings 132,462 134,162
Accumulated other comprehensive income (2,470) (5,079)
---------- ----------
Total shareholders' equity 129,992 136,062
---------- ----------
Total liabilities and shareholders' equity $1,559,351 $1,566,819
========== ==========