EXHIBIT 99
(MBT FINANCIAL CORP. (R) LOGO)
MBT FINANCIAL CORP. ANNOUNCES SECOND QUARTER 2008 EARNINGS
MONROE, MICH., July 17, 2008 - MBT Financial Corp., (Nasdaq: MBTF), the parent
company of Monroe Bank & Trust, reported second quarter 2008 net income of $1.7
million, or $0.11 per diluted share, compared to the $3.5 million, or $0.21 per
diluted share earned in the second quarter of 2007. Net income for the six
months ended June 30, 2008 was $4.4 million, or $0.27 per diluted share,
compared to $7.2 million, or $0.43 per diluted share in the first half of 2007.
H. Douglas Chaffin, President and CEO, commented, "The ongoing challenges in the
southeast Michigan economy, with increasing unemployment and decreasing real
estate values, continue to have a negative impact on our performance. We monitor
the quality of our loan portfolios closely, and we decided to increase the
allowance for loan losses and write down the values of some of our Other Real
Estate Owned this quarter. Our Allowance for Loan Losses is now $18.1 million,
or 1.83% of loans. Non performing assets (NPAs) increased from $55.4 million to
$62.3 million. Our strong capital position allowed us to pay quarterly dividends
that exceeded our earnings for the last three quarters and now represents an
annualized yield in excess of 14% on our current stock price. We are concerned
about our current level of dividends relative to earnings. In accordance with
its customary practice our board of directors will closely evaluate our capital
needs, earnings expectations, and market conditions before declaring our next
dividend. The next dividend announcement is not anticipated until after the
board's August meeting on August 28, 2008.
Mr. Chaffin further commented on the Company's earnings for the quarter. "Net
Interest Income increased $340,000 compared to the second quarter of 2007 due to
the improvement in the net interest margin and the slight growth in average
earning assets. We are encouraged by the second consecutive quarterly
improvement in the margin, and we are beginning to see the benefits of our cost
reduction initiatives. Non interest income, excluding securities transactions,
decreased 4.8% compared to last year as Wealth Management fees were impacted by
lower market values for investments and origination fees on mortgage loans sold
were impacted by a decline in real estate lending activity. Credit quality
issues also affected our non interest expenses, which increased 9.5% compared to
last year. We expect credit related expenses to remain high, but we will see
meaningful expense improvement in most other areas."
CONFERENCE CALL
MBT Financial Corp. will hold a conference call to discuss first quarter results
on Friday, July 18, 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 25 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 2008 2008 2007 2007 2007
except per share data) 2ND QTR 1ST QTR 4TH QTR 3RD QTR 2ND QTR 2008 2007
- ---------------------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
EARNINGS
Net interest income $ 11,127 $ 10,453 $ 10,131 $ 10,668 $ 10,787 $ 21,580 $ 21,970
FTE Net interest income $ 11,463 $ 10,784 $ 10,232 $ 11,011 $ 11,127 $ 22,247 $ 22,714
Provision for loan and lease losses $ 2,700 $ 1,200 $ 8,907 $ 1,000 $ 750 $ 3,900 $ 1,500
Non-interest income $ 3,858 $ 3,962 $ 3,824 $ 3,928 $ 4,119 $ 7,820 $ 7,882
Non-interest expense $ 10,163 $ 9,698 $ 9,601 $ 9,242 $ 9,279 $ 19,861 $ 18,391
Net income (loss) $ 1,718 $ 2,647 $ (2,706) $ 3,181 $ 3,535 $ 4,365 $ 7,238
Basic earnings (loss) per share $ 0.11 $ 0.16 $ (0.17) $ 0.20 $ 0.21 $ 0.27 $ 0.43
Diluted earnings (loss) per share $ 0.11 $ 0.16 $ (0.17) $ 0.20 $ 0.21 $ 0.27 $ 0.43
Average shares outstanding 16,130,806 16,127,047 16,135,339 16,288,696 16,558,137 16,125,926 16,622,204
Average diluted shares outstanding 16,144,981 16,139,073 16,145,958 16,310,279 16,585,720 16,140,101 16,651,173
PERFORMANCE RATIOS
Return on average assets 0.45% 0.69% -0.70% 0.83% 0.94% 0.57% 0.95%
Return on average common equity 5.34% 8.24% -8.05% 9.55% 10.33% 6.79% 10.62%
Base Margin 3.05% 2.84% 2.74% 2.90% 2.98% 2.95% 3.02%
FTE Adjustment 0.09% 0.09% 0.03% 0.10% 0.10% 0.09% 0.10%
Loan Fees 0.07% 0.07% 0.06% 0.08% 0.07% 0.07% 0.07%
----------- ----------- ----------- ----------- ----------- ----------- -----------
FTE Net Interest Margin 3.21% 3.00% 2.83% 3.08% 3.15% 3.11% 3.19%
Efficiency ratio 61.24% 64.51% 60.16% 61.06% 60.74% 62.83% 59.79%
Full-time equivalent employees 384 380 404 426 425 382 427
CAPITAL
Average equity to average assets 8.42% 8.36% 8.66% 8.69% 9.06% 8.39% 8.98%
Book value per share $ 7.52 $ 7.94 $ 7.90 $ 8.15 $ 8.00 $ 7.52 $ 8.00
Cash dividend per share $ 0.18 $ 0.18 $ 0.18 $ 0.18 $ 0.18 $ 0.36 $ 0.36
ASSET QUALITY
Loan Charge-Offs $ 2,607 $ 3,955 $ 3,204 $ 1,013 $ 1,082 $ 6,562 $ 2,170
Loan Recoveries $ 317 $ 216 $ 195 $ 256 $ 343 $ 533 $ 986
----------- ----------- ----------- ----------- ----------- ----------- -----------
Net Charge-Offs $ 2,290 $ 3,739 $ 3,009 $ 757 $ 739 $ 6,029 $ 1,184
Allowance for loan and lease losses $ 18,093 $ 17,683 $ 20,222 $ 14,323 $ 14,080 $ 18,093 $ 14,080
Nonaccrual Loans $ 38,115 $ 37,814 $ 30,459 $ 26,440 $ 20,017 $ 38,115 $ 20,017
Loans 90 days past due $ 109 $ 94 $ 102 $ 105 $ 105 $ 109 $ 105
Restructured loans $ 6,023 $ 1,679 $ 3,367 $ 938 $ 1,371 $ 6,023 $ 1,371
----------- ----------- ----------- ----------- ----------- ----------- -----------
Total non performing loans $ 44,247 $ 39,587 $ 33,928 $ 27,483 $ 21,493 $ 44,247 $ 21,493
Other real estate owned & other
assets $ 18,065 $ 15,819 $ 12,565 $ 6,389 $ 3,064 $ 18,065 $ 3,064
----------- ----------- ----------- ----------- ----------- ----------- -----------
Total non performing assets $ 62,312 $ 55,406 $ 46,493 $ 33,872 $ 24,557 $ 62,312 $ 24,557
Problem Loans Still Performing $ 41,188 $ 40,521 $ 41,022 $ 32,822 $ 34,859 $ 41,188 $ 34,859
----------- ----------- ----------- ----------- ----------- ----------- -----------
Total Problem Assets $ 103,500 $ 95,927 $ 87,515 $ 66,694 $ 59,416 $ 103,500 $ 59,416
Net loan charge-offs to average loans 0.93% 1.51% 1.19% 0.30% 0.30% 1.22% 0.24%
Allowance for losses to total loans 1.83% 1.78% 2.02% 1.42% 1.40% 1.83% 1.40%
Non performing loans to gross loans 4.47% 3.99% 3.39% 2.72% 2.14% 4.47% 2.14%
Non performing assets to total assets 4.04% 3.56% 2.99% 2.17% 1.62% 4.04% 1.62%
Allowance to non performing loans 40.89% 44.67% 59.60% 52.12% 65.51% 40.89% 65.51%
END OF PERIOD BALANCES
Loans and leases $ 989,839 $ 991,402 $ 1,002,259 $ 1,008,875 $ 1,002,248 $ 989,839 $ 1,002,248
Total earning assets $ 1,421,653 $ 1,435,370 $ 1,440,317 $ 1,439,366 $ 1,402,808 $ 1,421,653 $ 1,402,808
Total assets $ 1,542,747 $ 1,555,450 $ 1,556,806 $ 1,560,234 $ 1,516,026 $ 1,542,747 $ 1,516,026
Deposits $ 1,065,770 $ 1,095,605 $ 1,109,980 $ 1,110,074 $ 1,078,431 $ 1,065,770 $ 1,078,431
Interest Bearing Liabilities $ 1,267,718 $ 1,286,289 $ 1,273,665 $ 1,273,695 $ 1,224,061 $ 1,267,718 $ 1,224,061
Shareholders' equity $ 121,348 $ 128,081 $ 127,447 $ 131,651 $ 131,056 $ 121,348 $ 131,056
Total Shares Outstanding 16,132,513 16,128,321 16,124,997 16,148,863 16,379,602 16,132,513 16,379,602
AVERAGE BALANCES
Loans and leases $ 992,618 $ 998,060 $ 1,002,948 $ 1,010,604 $ 994,093 $ 995,339 $ 993,797
Total earning assets $ 1,432,923 $ 1,444,037 $ 1,436,545 $ 1,419,329 $ 1,420,183 $ 1,438,445 $ 1,433,143
Total assets $ 1,536,884 $ 1,545,048 $ 1,539,446 $ 1,520,222 $ 1,516,209 $ 1,540,966 $ 1,530,284
Deposits $ 1,076,046 $ 1,109,664 $ 1,094,346 $ 1,086,050 $ 1,075,960 $ 1,092,855 $ 1,087,839
Interest Bearing Liabilities $ 1,273,052 $ 1,283,990 $ 1,264,772 $ 1,248,691 $ 1,236,703 $ 1,278,521 $ 1,249,949
Shareholders' equity $ 129,353 $ 129,175 $ 133,363 $ 132,088 $ 137,322 $ 129,264 $ 137,447
MBT FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
QUARTER ENDED JUNE 30,
----------------------
Dollars in thousands (except per share data) 2008 2007
- -------------------------------------------- ------- --------
INTEREST INCOME
Interest and fees on loans $15,771 $ 17,751
Interest on investment securities-
Tax-exempt 818 871
Taxable 4,798 4,582
Interest on federal funds sold -- 84
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Total interest income 21,387 23,288
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INTEREST EXPENSE
Interest on deposits 6,368 7,981
Interest on borrowed funds 3,892 4,520
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Total interest expense 10,260 12,501
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NET INTEREST INCOME 11,127 10,787
PROVISION FOR LOAN LOSSES 2,700 750
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NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES 8,427 10,037
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OTHER INCOME
Income from wealth management services 1,119 1,151
Service charges and other fees 1,586 1,574
Net gain (loss) on sales of securities 23 92
Origination fees on mortgage loans sold 91 210
Bank Owned Life Insurance income 275 334
Other 764 758
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Total other income 3,858 4,119
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OTHER EXPENSES
Salaries and employee benefits 5,441 5,599
Occupancy expense 916 844
Equipment expense 848 850
Marketing expense 356 369
Professional fees 455 406
Net (gain) loss on other real estate owned 354 (8)
Other 1,793 1,219
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Total other expenses 10,163 9,279
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INCOME BEFORE INCOME TAXES 2,122 4,877
INCOME TAX EXPENSE 404 1,342
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NET INCOME $ 1,718 $ 3,535
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BASIC EARNINGS PER COMMON SHARE $ 0.11 $ 0.21
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DILUTED EARNINGS PER COMMON SHARE $ 0.11 $ 0.21
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DIVIDENDS DECLARED PER COMMON SHARE $ 0.18 $ 0.18
======= ========
MBT FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
SIX MONTHS ENDED JUNE 30,
-------------------------
Dollars in thousands (except per share data) 2008 2007
- -------------------------------------------- ------- --------
INTEREST INCOME
Interest and fees on loans $32,199 $35,512
Interest on investment securities-
Tax-exempt 1,633 1,880
Taxable 9,754 9,497
Interest on federal funds sold 1 116
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Total interest income 43,587 47,005
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INTEREST EXPENSE
Interest on deposits 13,859 15,936
Interest on borrowed funds 8,148 9,099
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Total interest expense 22,007 25,035
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NET INTEREST INCOME 21,580 21,970
PROVISION FOR LOAN LOSSES 3,900 1,500
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NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES 17,680 20,470
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OTHER INCOME
Income from trust services 2,246 2,218
Service charges and other fees 3,112 3,099
Net gain (loss) on sales of securities 48 92
Origination fees on mortgage loans sold 284 393
Bank Owned Life Insurance income 630 630
Other 1,500 1,450
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Total other income 7,820 7,882
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OTHER EXPENSES
Salaries and employee benefits 11,023 11,048
Occupancy expense 1,911 1,724
Equipment expense 1,676 1,695
Marketing expense 597 621
Professional fees 924 776
Net loss on other real estate owned 389 10
Other 3,341 2,517
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Total other expenses 19,861 18,391
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INCOME BEFORE INCOME TAXES 5,639 9,961
INCOME TAX EXPENSE (BENEFIT) 1,274 2,723
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NET INCOME $ 4,365 $ 7,238
======= =======
BASIC EARNINGS PER COMMON SHARE $ 0.27 $ 0.43
======= =======
DILUTED EARNINGS PER COMMON SHARE $ 0.27 $ 0.43
======= =======
DIVIDENDS DECLARED PER COMMON SHARE $ 0.36 $ 0.36
======= =======
MBT FINANCIAL CORP.
CONSOLIDATED BALANCE SHEETS
JUNE 30, 2008 DECEMBER 31,
Dollars in thousands (UNAUDITED) 2007
- -------------------- ------------- ------------
ASSETS
Cash and Cash Equivalents
Cash and due from banks $ 21,986 $ 25,113
----------- -----------
Total cash and cash equivalents 21,986 25,113
Securities - Held to Maturity 38,005 44,734
Securities - Available for Sale 380,723 380,238
Federal Home Loan Bank stock - at cost 13,086 13,086
Loans held for sale 408 1,431
Loans - Net 971,338 980,606
Accrued interest receivable and other assets 41,830 36,370
Bank Owned Life Insurance 43,139 42,509
Premises and Equipment - Net 32,232 32,719
----------- -----------
Total assets $ 1,542,747 $ 1,556,806
=========== ===========
LIABILITIES
Deposits:
Non-interest bearing $ 139,052 $ 141,115
Interest-bearing 926,718 968,865
----------- -----------
Total deposits 1,065,770 1,109,980
Federal Home Loan Bank advances 256,500 256,500
Federal funds purchased 54,500 13,300
Repurchase agreements 30,000 35,000
Interest payable and other liabilities 14,629 14,579
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Total liabilities 1,421,399 1,429,359
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SHAREHOLDERS' EQUITY
Common stock (no par value) -- --
Retained Earnings 128,674 129,917
Accumulated other comprehensive income (7,326) (2,470)
----------- -----------
Total shareholders' equity 121,348 127,447
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Total liabilities and shareholders'
equity $ 1,542,747 $ 1,556,806
=========== ===========