MBT Financial Corp. Announces Dividend and Preliminary Fourth Quarter 2018 Highlights

MBT Financial Corp. (NASDAQ: MBTF), the parent company of Monroe Bank & Trust, announced that it will pay a quarterly dividend of $0.10 per common share on February 14, 2019 to shareholders of record as of February 7, 2019. This is an increase of $0.04 per share compared to the regular dividend paid in the same quarter last year.

On October 10, 2018, the Company announced that it signed a definitive agreement to merge with First Merchants Corporation (NASDAQ: FRME), headquartered in Muncie, Indiana. The merger is on track to close in the first quarter of 2019, so the Company will not be providing its typical detailed earnings announcement and investor conference call. 

The preliminary net profit was $3,878,000 ($0.17 per share, basic and diluted), in the fourth quarter of 2018, compared to a loss of $144,000 ($0.01 per share, basic), in the fourth quarter of 2017. The preliminary full year profit was $17,699,000 ($0.77 per share, basic and diluted), compared to $10,609,000 ($0.46 per share, basic and diluted) for 2017. Fourth quarter profits in 2018 were negatively affected by merger related costs and fourth quarter profits in 2017 were negatively affected by tax adjustments due to the Tax Cuts and Jobs Act.  Merger related expenses in the fourth quarter of 2018 accounted for $0.04 per share, basic and diluted. 

The Net Interest Income for the fourth quarter of 2018 increased $1,080,000, or 10.4%. The Company did not record a provision for loan losses this quarter, compared to a negative provision of $500,000 recorded in the fourth quarter of 2017. Non-interest income for the fourth quarter of 2018 decreased $344,000, or 9.4% compared to the fourth quarter of 2017 primarily due to income received from a Bank Owned Life Insurance claim in 2017, and non-interest expense increased $786,000, or 8.6% primarily due to the aforementioned merger related expenses.

Total assets of the company decreased $10.5 million, or 0.8%, compared to December 31, 2017, to $1.34 billion. Capital decreased $5.0 million during 2018 because the payment of the special and regular dividends exceeded the net income and because the AOCL increased due to an increase in the unrealized loss on Available For Sale investment securities. Total loans increased $73.8 million, or 10.6% in 2018 while total deposits decreased $15.3 million, or 1.3%. This improved the Loan to Deposit ratio from 58.0% a year ago to 65.0% at the end of 2018.

H. Douglas Chaffin, President and CEO, commented, “We are making good progress toward closing our previously announced merger with First Merchants Corporation headquartered in Muncie, Indiana. This merger will provide tremendous benefits to our customers, shareholders and communities, and we look forward to continuing the legacy of exceptional customer service, local responsiveness, and strong community engagement that has defined Monroe Bank and Trust for 160 years.”

About the Company: MBT Financial Corp. (NASDAQ:MBTF), a bank holding company headquartered in Monroe, Michigan, is the parent company of Monroe Bank & Trust. Founded in 1858, Monroe Bank & Trust helps customers’ remarkable stories unfold through an uncommon, optimistic culture. As one of the largest community banks in Southeast Michigan, with over $1.3 billion in assets, this full-service bank offers a complete range of business and personal accounts, mobile and online banking, offices and ATMs across Monroe and Wayne Counties, credit and mortgage options, investment and retirement services and award-winning community outreach. The bank believes in its customers, helping them with everything from day-to-day needs to long-term goals, and is ranked fourth among all Michigan banks for total trust assets.  The bank believes in its communities, supporting over 300 organizations with sponsorships and also more than 8,000 employee volunteer hours through the Monroe Bank & Trust ENLIST Volunteerism program. The bank believes in the power of knowledge, helping thousands of students and adults thrive through the Monroe Bank & Trust Financial Education program.  Monroe Bank & Trust is proud to be a trusted partner to communities and clients, and an employer of choice.  We are Monroe Bank & Trust, and we believe in the story of you.

For more information about Monroe Bank & Trust, visit www.monroe.bank.Or, contact: Julian Broggio SVP, Director of Marketing [phone] [e-mail]

MBT FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
				Quarter Ended December 31,								Year Ended December 31,
Dollars in thousands (except per share data)					2018				2017				2018				2017
Interest Income
Interest and fees on loans				$	9,492			$	8,132			$	35,609			$	31,300
Interest on investment securities-
	Tax-exempt				408				356				1,670				1,299
	Taxable				2,084				2,200				8,501				8,707
Interest on balances due from banks					138				102				514				494
			Total interest income		12,122				10,790				46,294				41,800
Interest Expense
Interest on deposits					534				414				1,804				1,731
Interest on borrowed funds					135				3				451				6
			Total interest expense		669				417				2,255				1,737
Net Interest Income					11,453				10,373				44,039				40,063
Provision For (Recovery Of) Loan Losses					-				(500	)			(100	)			(700	)
Net Interest Income After
Provision For (Recovery Of) Loan Losses					11,453				10,873				44,139				40,763
Other Income
Income from wealth management services					1,172				1,187				4,728				5,017
Service charges and other fees					940				1,050				3,834				4,186
Debit Card income					799				730				3,068				2,877
Net gain on sales of securities					(622	)			(773	)			(815	)			(546	)
Net gain (loss) on other real estate owned					7				67				543				(22	)
Origination fees on mortgage loans sold					108				68				414				329
Bank Owned Life Insurance income					359				848				1,411				1,978
Other					550				480				2,357				2,063
			Total other income		3,313				3,657				15,540				15,882
Other Expenses
Salaries and employee benefits					5,630				5,380				22,344				21,400
Occupancy expense					672				701				2,673				2,825
Equipment expense					881				855				3,429				3,126
Marketing expense					356				361				1,589				1,322
Professional fees					1,149				560				2,885				2,339
EFT/ATM expense					316				259				1,160				1,022
Other real estate owned expense					39				22				100				117
FDIC deposit insurance assessment					95				107				391				428
Bonding and other insurance expense					131				119				529				486
Telephone expense					91				83				324				385
Other					541				668				2,611				2,685
			Total other expenses		9,901				9,115				38,035				36,135
Profit Before Income Taxes					4,865				5,415				21,644				20,510
Income Tax Expense					987				5,559				3,945				9,901
Net Profit				$	3,878			$	(144	)		$	17,699			$	10,609
Basic Earnings Per Common Share				$	0.17			$	(0.01	)		$	0.77			$	0.46
Diluted Earnings Per Common Share				$	0.17			$	(0.01	)		$	0.77			$	0.46
Dividends Declared Per Common Share				$	0.10			$	0.06			$	0.93			$	0.92

 

MBT FINANCIAL CORP.
CONSOLIDATED BALANCE SHEETS
				(Unaudited)
Dollars in thousands				December 31, 2018				December 31, 2017
Assets
Cash and Cash Equivalents
	Cash and due from banks
		Non-interest bearing		$	17,058			$	18,233
		Interest bearing			34,784				34,777
		Total cash and cash equivalents			51,842				53,010
Interest Bearing Time Deposits in Other Banks					10,796				15,196
Securities - Held to Maturity					-				37,163
Securities - Available for Sale					401,613				442,816
Equity Securities					7,415				4,148
Loans held for sale					488				346
Loans					768,660				694,979
Allowance for Loan Losses					(7,771	)			(7,666	)
Loans - Net					760,889				687,313
Accrued interest receivable and other assets					16,743				20,463
Other Real Estate Owned					692				1,412
Bank Owned Life Insurance					59,563				58,153
Premises and Equipment - Net					26,850				27,400
		Total assets		$	1,336,891			$	1,347,420
Liabilities
Deposits:
	Non-interest bearing			$	297,704			$	299,838
	Interest-bearing				885,206				898,326
		Total deposits			1,182,910				1,198,164
Federal Home Loan Bank advances					10,000				-
Accrued interest payable and other liabilities					16,314				16,598
		Total liabilities			1,209,224				1,214,762
Shareholders' Equity
Common stock (no par value)					23,453				22,840
Retained Earnings					113,921				117,524
Unearned Compensation					-				-
Accumulated other comprehensive loss					(9,707	)			(7,706	)
		Total shareholders' equity			127,667				132,658
		Total liabilities and shareholders' equity		$	1,336,891			$	1,347,420