EXHIBIT 99
(MBT(R) FINANCIAL CORP. LOGO)
MBT FINANCIAL CORP. ANNOUNCES THIRD QUARTER 2008 EARNINGS
MONROE, MICH., October 21, 2008 - MBT Financial Corp., (Nasdaq: MBTF), the
parent company of Monroe Bank & Trust, reported third quarter 2008 net income of
$324,000, or $0.02 per diluted share, compared to the $3.2 million, or $0.20 per
diluted share earned in the third quarter of 2007. Net income for the nine
months ended September 30, 2008 was $4.7 million, or $0.29 per diluted share,
compared to $10.4 million, or $0.63 per diluted share in the nine months of
2007.
H. Douglas Chaffin, President and CEO, commented, "Due to the poor economic
conditions and decreasing real estate values, we increased our provision for
loan losses and wrote down the values of some foreclosed residential real estate
development properties in the third quarter. The provision for loan losses
increased from $1 million in the third quarter of 2007 to $4.1 million this
year, and losses and write downs of Other Real Estate Owned increased from
$12,000 in the third quarter of 2007 to $2.2 million in the third quarter of
2008. Our Allowance for Loan Losses is now $18.4 million, or 1.88% of loans. Non
performing assets (NPAs) decreased slightly during the quarter from $62.3
million to $59.9 million.
Mr. Chaffin further commented on the Company's earnings for the quarter. "Net
Interest Income increased $418,000 compared to the third quarter of 2007 as the
net interest margin improved from 3.08% to 3.24%. Non interest income, excluding
securities gains, was unchanged at $3.9 million due to the low level of mortgage
loan origination activity. Non interest expenses, excluding OREO losses,
decreased slightly compared to the same period a year ago. "
Finally, after the third quarter ended, we acquired the deposits of Main Street
Bank in Northville and Plymouth, Michigan from the FDIC when they were closed by
state regulators. This adds two branches, 4 ATMs, and over $40 million in core
deposits to our company. So far, integration is progressing well, and we look
forward to bringing our style of community banking and wealth management to the
Northville and Plymouth areas."
CONFERENCE CALL
MBT Financial Corp. will hold a conference call to discuss third quarter results
on Wednesday, October 22, 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 27 offices, 45 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 Mary Jane Town
Chief Executive Officer Chief Financial Officer Marketing Officer
(734) 384-8123 (734) 242-1879 (734) 240-2510
doug.chaffin@mbandt.com john.skibski@mbandt.com maryjane.town@mbandt.com
MBT FINANCIAL CORP.
CONSOLIDATED FINANCIAL HIGHLIGHTS - UNAUDITED
QUARTERLY
--------------------------------------------------------------- YEAR TO DATE
(dollars 2008 2008 2008 2007 2007 -------------------------
in thousands except per share data) 3RD QTR 2ND QTR 1ST QTR 4TH QTR 3RD QTR 2008 2007
----------- ----------- ----------- ----------- ----------- ----------- ------------
EARNINGS
Net interest income $ 11,086 $ 11,127 $ 10,453 $ 10,131 $ 10,668 $ 32,666 $ 32,638
FTE Net interest income $ 11,417 $ 11,463 $ 10,784 $ 10,232 $ 11,011 $ 33,664 $ 33,725
Provision for loan and lease losses $ 4,100 $ 2,700 $ 1,200 $ 8,907 $ 1,000 $ 8,000 $ 2,500
Non-interest income $ 4,265 $ 3,858 $ 3,962 $ 3,824 $ 3,928 $ 12,085 $ 11,810
Non-interest expense $ 11,365 $ 10,163 $ 9,698 $ 9,601 $ 9,242 $ 31,226 $ 27,633
Net income (loss) $ 324 $ 1,718 $ 2,647 $ (2,706) $ 3,181 $ 4,689 $ 10,419
Basic earnings (loss) per share $ 0.02 $ 0.11 $ 0.16 $ (0.17) $ 0.20 $ 0.29 $ 0.63
Diluted earnings (loss) per share $ 0.02 $ 0.11 $ 0.16 $ (0.17) $ 0.20 $ 0.29 $ 0.63
Average shares outstanding 16,136,402 16,130,806 16,127,047 16,135,339 16,288,696 16,131,436 16,509,813
Average diluted shares outstanding 16,163,863 16,162,181 16,139,073 16,145,958 16,310,279 16,158,897 16,531,396
PERFORMANCE RATIOS
Return on average assets 0.09% 0.45% 0.69% -0.70% 0.83% 0.41% 0.91%
Return on average common equity 1.04% 5.34% 8.24% -8.05% 9.55% 4.92% 10.27%
Base Margin 3.08% 3.05% 2.84% 2.74% 2.90% 2.99% 2.98%
FTE Adjustment 0.09% 0.09% 0.09% 0.03% 0.10% 0.09% 0.10%
Loan Fees 0.07% 0.07% 0.07% 0.06% 0.08% 0.07% 0.07%
----------- ----------- ----------- ----------- ----------- ----------- -----------
FTE Net Interest Margin 3.24% 3.21% 3.00% 2.83% 3.08% 3.15% 3.15%
Efficiency ratio 56.66% 61.24% 64.51% 60.16% 61.06% 60.75% 60.20%
Full-time equivalent employees 366 384 380 404 426 374 427
CAPITAL
Average equity to average assets 8.19% 8.42% 8.36% 8.66% 8.69% 8.32% 8.88%
Book value per share $ 7.46 $ 7.52 $ 7.94 $ 7.90 $ 8.15 $ 7.46 $ 8.15
Cash dividend per share $ 0.09 $ 0.18 $ 0.18 $ 0.18 $ 0.18 $ 0.45 $ 0.54
ASSET QUALITY
Loan Charge-Offs $ 3,954 $ 2,607 $ 3,955 $ 3,204 $ 1,013 $ 10,516 $ 3,183
Loan Recoveries $ 169 $ 317 $ 216 $ 195 $ 256 $ 702 $ 1,242
----------- ----------- ----------- ----------- ----------- ----------- -----------
Net Charge-Offs $ 3,785 $ 2,290 $ 3,739 $ 3,009 $ 757 $ 9,814 $ 1,941
Allowance for loan and lease losses $ 18,408 $ 18,093 $ 17,683 $ 20,222 $ 14,323 $ 18,408 $ 14,323
Nonaccrual Loans $ 34,892 $ 38,115 $ 37,814 $ 30,459 $ 26,440 $ 34,892 $ 26,440
Loans 90 days past due $ 119 $ 109 $ 94 $ 102 $ 105 $ 119 $ 105
Restructured loans $ 6,685 $ 6,023 $ 1,679 $ 3,367 $ 938 $ 6,685 $ 938
----------- ----------- ----------- ----------- ----------- ----------- -----------
Total non performing loans $ 41,696 $ 44,247 $ 39,587 $ 33,928 $ 27,483 $ 41,696 $ 27,483
Other real estate owned & other assets $ 17,893 $ 18,065 $ 15,819 $ 12,565 $ 6,389 $ 17,893 $ 6,389
----------- ----------- ----------- ----------- ----------- ----------- -----------
Total non performing assets $ 59,589 $ 62,312 $ 55,406 $ 46,493 $ 33,872 $ 59,589 $ 33,872
Problem Loans Still Performing $ 56,156 $ 41,188 $ 40,521 $ 41,022 $ 32,822 $ 56,156 $ 32,822
----------- ----------- ----------- ----------- ----------- ----------- -----------
Total Problem Assets $ 115,745 $ 103,500 $ 95,927 $ 87,515 $ 66,694 $ 115,745 $ 66,694
Net loan charge-offs to average loans 1.54% 0.93% 1.51% 1.19% 0.30% 1.32% 0.26%
Allowance for losses to total loans 1.88% 1.83% 1.78% 2.02% 1.42% 1.88% 1.42%
Non performing loans to gross loans 4.25% 4.47% 3.99% 3.39% 2.72% 4.25% 2.72%
Non performing assets to total assets 3.96% 4.04% 3.56% 2.99% 2.17% 3.96% 2.17%
Allowance to non performing loans 44.15% 40.89% 44.67% 59.60% 52.12% 44.15% 52.12%
END OF PERIOD BALANCES
Loans and leases $ 981,038 $ 989,839 $ 991,402 $ 1,002,259 $ 1,008,875 $ 981,038 $ 1,008,875
Total earning assets $ 1,383,659 $ 1,421,653 $ 1,435,370 $ 1,440,317 $ 1,439,366 $ 1,383,659 $ 1,439,366
Total assets $ 1,505,709 $ 1,542,747 $ 1,555,450 $ 1,556,806 $ 1,560,234 $ 1,505,709 $ 1,560,234
Deposits $ 1,080,194 $ 1,065,770 $ 1,095,605 $ 1,109,980 $ 1,110,074 $ 1,080,194 $ 1,110,074
Interest Bearing Liabilities $ 1,234,705 $ 1,267,718 $ 1,286,289 $ 1,273,665 $ 1,273,695 $ 1,234,705 $ 1,273,695
Shareholders' equity $ 120,413 $ 121,348 $ 128,081 $ 127,447 $ 131,651 $ 120,413 $ 131,651
Total Shares Outstanding 16,139,538 16,132,513 16,128,321 16,124,997 16,148,863 16,139,538 16,148,863
AVERAGE BALANCES
Loans and leases $ 980,466 $ 992,618 $ 998,060 $ 1,002,948 $ 1,010,604 $ 990,345 $ 999,461
Total earning assets $ 1,398,768 $ 1,432,923 $ 1,444,037 $ 1,436,545 $ 1,419,329 $ 1,425,146 $ 1,428,488
Total assets $ 1,505,823 $ 1,536,884 $ 1,545,048 $ 1,539,446 $ 1,520,222 $ 1,529,166 $ 1,526,893
Deposits $ 1,076,734 $ 1,076,046 $ 1,109,664 $ 1,094,346 $ 1,086,050 $ 1,087,442 $ 1,087,236
Interest Bearing Liabilities $ 1,245,873 $ 1,273,052 $ 1,283,990 $ 1,264,772 $ 1,248,691 $ 1,267,559 $ 1,249,525
Shareholders' equity $ 123,355 $ 129,353 $ 129,175 $ 133,363 $ 132,088 $ 127,280 $ 135,641
MBT FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
QUARTER ENDED SEPTEMBER 30,
---------------------------
Dollars in thousands (except per share data) 2008 2007
- -------------------------------------------- ------- -------
INTEREST INCOME
Interest and fees on loans $15,689 $18,116
Interest on investment securities-
Tax-exempt 844 875
Taxable 4,558 4,541
Interest on federal funds sold 22 25
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Total interest income 21,113 23,557
------- -------
INTEREST EXPENSE
Interest on deposits 6,263 8,277
Interest on borrowed funds 3,764 4,612
------- -------
Total interest expense 10,027 12,889
------- -------
NET INTEREST INCOME 11,086 10,668
PROVISION FOR LOAN LOSSES 4,100 1,000
------- -------
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES 6,986 9,668
------- -------
OTHER INCOME
Income from wealth management services 1,087 1,171
Service charges and other fees 1,683 1,599
Net gain (loss) on sales of securities 323 4
Origination fees on mortgage loans sold 73 169
Bank Owned Life Insurance income 355 329
Other 744 656
------- -------
Total other income 4,265 3,928
------- -------
OTHER EXPENSES
Salaries and employee benefits 5,090 5,363
Occupancy expense 801 845
Equipment expense 804 780
Marketing expense 297 426
Professional fees 401 369
Net loss on other real estate owned 2,215 12
Other 1,757 1,447
------- -------
Total other expenses 11,365 9,242
------- -------
INCOME BEFORE INCOME TAXES (114) 4,354
INCOME TAX EXPENSE (BENEFIT) (438) 1,173
------- -------
NET INCOME $ 324 $ 3,181
------- -------
BASIC EARNINGS PER COMMON SHARE $ 0.02 $ 0.20
------- -------
DILUTED EARNINGS PER COMMON SHARE $ 0.02 $ 0.20
------- -------
DIVIDENDS DECLARED PER COMMON SHARE $ 0.09 $ 0.18
======= =======
MBT FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
NINE MONTHS ENDED
SEPTEMBER 30,
-----------------
Dollars in thousands (except per share data) 2008 2007
- -------------------------------------------- ------- -------
INTEREST INCOME
Interest and fees on loans $47,888 $53,628
Interest on investment securities-
Tax-exempt 2,477 2,755
Taxable 14,312 14,038
Interest on federal funds sold 23 141
------- -------
Total interest income 64,700 70,562
------- -------
INTEREST EXPENSE
Interest on deposits 20,122 24,213
Interest on borrowed funds 11,912 13,711
------- -------
Total interest expense 32,034 37,924
------- -------
NET INTEREST INCOME 32,666 32,638
PROVISION FOR LOAN LOSSES 8,000 2,500
------- -------
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES 24,666 30,138
------- -------
OTHER INCOME
Income from trust services 3,333 3,389
Service charges and other fees 4,795 4,698
Net gain (loss) on sales of securities 371 96
Origination fees on mortgage loans sold 357 562
Bank Owned Life Insurance income 985 959
Other 2,244 2,106
------- -------
Total other income 12,085 11,810
------- -------
OTHER EXPENSES
Salaries and employee benefits 16,113 16,411
Occupancy expense 2,712 2,569
Equipment expense 2,480 2,475
Marketing expense 894 1,047
Professional fees 1,325 1,145
Net loss on other real estate owned 2,604 22
Other 5,098 3,964
------- -------
Total other expenses 31,226 27,633
------- -------
INCOME BEFORE INCOME TAXES 5,525 14,315
INCOME TAX EXPENSE (BENEFIT) 836 3,896
------- -------
NET INCOME $ 4,689 $10,419
======= =======
BASIC EARNINGS PER COMMON SHARE $ 0.29 $ 0.63
======= =======
DILUTED EARNINGS PER COMMON SHARE $ 0.29 $ 0.63
======= =======
DIVIDENDS DECLARED PER COMMON SHARE $ 0.45 $ 0.54
======= =======
MBT FINANCIAL CORP.
CONSOLIDATED BALANCE SHEETS
SEPTEMBER
30, 2008 DECEMBER 31,
Dollars in thousands (UNAUDITED) 2007
- -------------------- ----------- ------------
ASSETS
Cash and Cash Equivalents
Cash and due from banks $ 22,527 $ 25,113
Federal funds sold 5,300 --
---------- ----------
Total cash and cash equivalents 27,827 25,113
Securities - Held to Maturity 38,248 44,734
Securities - Available for Sale 345,387 380,238
Federal Home Loan Bank stock - at cost 13,086 13,086
Loans held for sale 267 1,431
Loans - Net 962,363 980,606
Accrued interest receivable and other assets 41,658 36,370
Bank Owned Life Insurance 45,083 42,509
Premises and Equipment - Net 31,790 32,719
---------- ----------
Total assets $1,505,709 $1,556,806
========== ==========
LIABILITIES
Deposits:
Non-interest bearing $ 136,989 $ 141,115
Interest-bearing 943,205 968,865
---------- ----------
Total deposits 1,080,194 1,109,980
Federal Home Loan Bank advances 261,500 256,500
Federal funds purchased -- 13,300
Repurchase agreements 30,000 35,000
Interest payable and other liabilities 13,602 14,579
---------- ----------
Total liabilities 1,385,296 1,429,359
---------- ----------
SHAREHOLDERS' EQUITY
Common stock (no par value) -- --
Retained Earnings 127,621 129,917
Accumulated other comprehensive income (7,208) (2,470)
---------- ----------
Total shareholders' equity 120,413 127,447
---------- ----------
Total liabilities and shareholders' equity $1,505,709 $1,556,806
========== ==========