MONROE, Mich., Jan. 23 /PRNewswire-FirstCall/ -- MBT Financial Corp.,
(Nasdaq: MBTF), the parent company of
For the full year, earnings were $3.9 million , a decrease of 78.5% compared to the $18.0 million earned in 2005. Diluted earnings per share decreased 77.7% from $1.03 in 2005 to $0.23 in 2006.
H.
'Asset quality has been a persistent problem for us, and with the ongoing economic weakness in our region, we are seeing an increase in delinquencies. Although non performing assets (NPAs) increased from $19.3 million to $22.5 million during the fourth quarter, total problem assets decreased slightly, from $59.0 million to $58.8 million . The increase in non accrual loans was mainly due to a single credit relationship that was previously recognized as a problem asset.'
Total assets were $1.57 billion at December 31, 2006 , a decrease of 4.4% from a year earlier. Investments decreased $81.6 million or 15.3% over the year, which funded the loan growth of $9.7 million (1.0%) and the deposit reduction of $68.7 million (5.8%). Shareholders' equity was $136.5 million , a decrease of $15.1 million over the past twelve months.
Conference Call
MBT Financial Corp. will hold a conference call to discuss fourth quarter results on Wednesday, January 24 , 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. (Nasdaq: MBTF), a single bank holding company
headquartered in Monroe, Michigan, is the parent company of
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, 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 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.
MBT FINANCIAL CORP.
CONSOLIDATED FINANCIAL HIGHLIGHTS - UNAUDITED
Quarterly
2006 2006 2006
(dollars in thousands except per share data) 4th Qtr 3rd Qtr 2nd Qtr
EARNINGS
Net interest income $11,165 $11,380 $11,922
FTE Net interest income $11,604 $11,803 $12,369
Provision for loan and lease losses $1,175 $7,950 $6,675
Non-interest income $3,511 $3,723 $(1,240)
Non-interest expense $8,269 $9,418 $10,052
Net income (loss) $3,830 $(1,118) $(3,576)
Basic earnings (loss) per share $0.23 $(0.07) $(0.21)
Diluted earnings (loss) per share $0.23 $(0.07) $(0.21)
Average shares outstanding 16,815,634 16,872,826 16,969,365
Average diluted shares
outstanding 16,837,925 16,894,504 17,000,563
PERFORMANCE RATIOS
Return on average assets 0.97% -0.28% -0.90%
Return on average common equity 10.76% -3.15% -9.61%
Base Margin 2.93% 2.95% 3.08%
FTE Adjustment 0.12% 0.11% 0.12%
Loan Fees 0.09% 0.10% 0.09%
FTE Net Interest Margin 3.14% 3.16% 3.29%
Efficiency ratio 54.17% 55.94% 53.73%
Full-time equivalent employees 415 416 418
CAPITAL
Average equity to average assets 9.02% 8.93% 9.34%
Book value per share $8.17 $8.30 $8.23
Cash dividend per share $0.18 $0.18 $0.17
ASSET QUALITY
Loan Charge-Offs $1,343 $12,407 $3,880
Loan Recoveries $390 $497 $504
Net Charge-Offs $953 $11,910 $3,376
Allowance for loan and lease losses $13,764 $13,542 $17,502
Nonaccrual Loans $19,152 $13,334 $22,132
Loans 90 days past due $69 $99 $85
Restructured loans $888 $944 $2,485
Total nonperforming loans $20,109 $14,377 $24,702
Other real estate owned $2,432 $4,873 $7,748
Nonperforming investment securities $- $- $-
Total nonperforming assets $22,541 $19,250 $32,450
Problem Loans Still Performing $36,264 $39,782 $55,202
Total Problem Assets $58,805 $59,032 $87,652
Net loan charge-offs to average loans 0.38% 4.61% 1.33%
Allowance for losses to total loans 1.38% 1.34% 1.71%
Nonperforming assets to Gross Loans 2.26% 1.91% 3.17%
Nonperforming assets to total assets 1.44% 1.21% 2.03%
Allowance to nonperforming assets 61.06% 70.35% 53.94%
END OF PERIOD BALANCES
Loans and leases $998,998 $1,008,914 $1,024,813
Total earning assets $1,451,110 $1,473,804 $1,479,252
Total assets $1,566,627 $1,588,374 $1,598,665
Deposits $1,116,056 $1,124,784 $1,116,030
Interest Bearing Liabilities $1,257,368 $1,284,862 $1,305,280
Shareholders' equity $136,524 $140,017 $138,823
Total Shares Outstanding 16,713,960 16,873,671 16,871,683
AVERAGE BALANCES
Loans and leases $1,001,549 $1,025,729 $1,017,097
Total earning assets $1,467,136 $1,480,840 $1,506,062
Total assets $1,565,707 $1,578,802 $1,597,107
Deposits $1,112,521 $1,113,447 $1,115,672
Interest Bearing Liabilities $1,280,146 $1,291,485 $1,298,117
Shareholders' equity $141,256 $140,954 $149,195
2006 2005
(dollars in thousands except per share data) 1st Qtr 4th Qtr
EARNINGS
Net interest income $12,168 $12,686
FTE Net interest income $12,650 $13,243
Provision for loan and lease losses $675 $1,606
Non-interest income $3,584 $3,656
Non-interest expense $8,489 $7,856
Net income (loss) $4,726 $5,160
Basic earnings (loss) per share $0.28 $0.30
Diluted earnings (loss) per share $0.28 $0.29
Average shares outstanding 17,111,913 17,222,943
Average diluted shares outstanding 17,162,737 17,274,577
PERFORMANCE RATIOS
Return on average assets 1.17% 1.26%
Return on average common equity 12.67% 13.22%
Base Margin 3.13% 3.20%
FTE Adjustment 0.13% 0.14%
Loan Fees 0.09% 0.11%
FTE Net Interest Margin 3.35% 3.45%
Efficiency ratio 52.22% 45.10%
Full-time equivalent employees 416 413
CAPITAL
Average equity to average assets 9.27% 9.54%
Book value per share $8.76 $8.82
Cash dividend per share $0.17 $0.17
ASSET QUALITY
Loan Charge-Offs $744 $1,423
Loan Recoveries $648 $877
Net Charge-Offs $96 $546
Allowance for loan and lease losses $14,204 $13,625
Nonaccrual Loans $16,553 $16,212
Loans 90 days past due $91 $101
Restructured loans $1,847 $1,813
Total nonperforming loans $18,491 $18,126
Other real estate owned $8,395 $8,336
Nonperforming investment securities $- $-
Total nonperforming assets $26,886 $26,462
Problem Loans Still Performing $63,937 $64,041
Total Problem Assets $90,823 $90,503
Net loan charge-offs to average loans 0.04% 0.22%
Allowance for losses to total loans 1.42% 1.38%
Nonperforming assets to Gross Loans 2.68% 2.67%
Nonperforming assets to total assets 1.66% 1.62%
Allowance to nonperforming assets 52.83% 51.49%
END OF PERIOD BALANCES
Loans and leases $1,003,757 $989,311
Total earning assets $1,509,020 $1,528,020
Total assets $1,615,099 $1,638,356
Deposits $1,147,385 $1,184,710
Interest Bearing Liabilities $1,294,008 $1,298,094
Shareholders' equity $149,392 $151,619
Total Shares Outstanding 17,059,170 17,197,116
AVERAGE BALANCES
Loans and leases $997,756 $977,770
Total earning assets $1,530,018 $1,523,391
Total assets $1,631,602 $1,623,108
Deposits $1,171,907 $1,163,964
Interest Bearing Liabilities $1,308,967 $1,299,820
Shareholders' equity $151,268 $154,857
MBT FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
Quarter Ended December 31,
Dollars in thousands (except per share data) 2006 2005
Interest Income
Interest and fees on loans $17,861 $16,983
Interest on investment securities -
Tax-exempt 1,073 1,272
Taxable 5,145 5,396
Interest on federal funds sold 11 29
Total interest income 24,090 23,680
Interest Expense
Interest on deposits 8,132 6,955
Interest on borrowed funds 4,793 4,039
Total interest expense 12,925 10,994
Net Interest Income 11,165 12,686
Provision For Loan Losses 1,175 1,606
Net Interest Income After
Provision For Loan Losses 9,990 11,080
Other Income
Income from trust services 1,076 1,112
Service charges and other fees 1,589 1,502
Net gain (loss) on sales of securities (156) 22
Origination fees on mortgage loans sold 132 129
Bank Owned Life Insurance income 293 276
Other 577 615
Total other income 3,511 3,656
Other Expenses
Salaries and employee benefits 4,296 4,333
Occupancy expense 829 813
Other 3,144 2,710
Total other expenses 8,269 7,856
Income (Loss) Before Income Taxes 5,232 6,880
Income Tax Expense (Benefit) 1,402 1,720
Net Income (Loss) $3,830 $5,160
Basic Earnings (Loss) Per Common Share $0.23 $0.30
Diluted Earnings (Loss) Per Common Share $0.23 $0.29
Dividends Declared Per Common Share $0.18 $0.17
MBT FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF INCOME
Years Ended December 31,
Dollars in thousands (except per share data) 2006 (Unaudited) 2005
Interest Income
Interest and fees on loans $70,950 $64,578
Interest on investment securities -
Tax-exempt 4,356 5,036
Taxable 20,546 19,864
Interest on federal funds sold 71 217
Total interest income 95,923 89,695
Interest Expense
Interest on deposits 30,849 23,578
Interest on borrowed funds 18,439 15,005
Total interest expense 49,288 38,583
Net Interest Income 46,635 51,112
Provision For Loan Losses 16,475 6,906
Net Interest Income After
Provision For Loan Losses 30,160 44,206
Other Income
Income from trust services 4,268 4,244
Service charges and other fees 6,210 5,833
Net gain (loss) on sales of securities (5,057) 295
Origination fees on mortgage loans sold 560 666
Bank Owned Life Insurance income 1,178 1,100
Other 2,419 2,311
Total other income 9,578 14,449
Other Expenses
Salaries and employee benefits 19,542 18,248
Occupancy expense 3,113 3,320
Other 13,573 12,250
Total other expenses 36,228 33,818
Income (Loss) Before Income Taxes 3,510 24,837
Income Tax Expense (Benefit) (352) 6,858
Net Income $3,862 $17,979
Basic Earnings Per Common Share $0.23 $1.04
Diluted Earnings Per Common Share $0.23 $1.03
Dividends Declared Per Common Share $0.70 $0.66
MBT FINANCIAL CORP.
CONSOLIDATED BALANCE SHEETS
Dec. 31, 2006 December 31,
Dollars in thousands (Unaudited) 2005
Assets
Cash and Cash Equivalents
Cash and due from banks $27,903 $32,330
Federal funds sold - 5,000
Total cash and cash equivalents 27,903 37,330
Securities - Held to Maturity 64,938 76,467
Securities - Available for Sale 374,087 444,021
Federal Home Loan Bank stock - at cost 13,086 13,221
Loans held for sale 721 434
Loans - Net 984,513 975,252
Accrued interest receivable and other assets 27,733 28,748
Bank Owned Life Insurance 39,667 36,252
Premises and Equipment - Net 33,979 26,631
Total assets $1,566,627 $1,638,356
Liabilities
Deposits:
Non-interest bearing $158,688 $178,116
Interest-bearing 957,368 1,006,594
Total deposits 1,116,056 1,184,710
Federal Home Loan Bank advances 256,500 256,500
Federal funds purchased 3,500 -
Repurchase agreements 40,000 35,000
Interest payable and other liabilities 14,047 10,527
Total liabilities 1,430,103 1,486,737
Shareholders' Equity
Common stock (no par value) - -
Additional paid-in capital 6,979 14,417
Retained Earnings 134,251 142,205
Accumulated other comprehensive income (4,706) (5,003)
Total shareholders' equity 136,524 151,619
Total liabilities and
shareholders' equity $1,566,627 $1,638,356
SOURCE MBT Financial Corp.
