MBT Financial Corp. Announces Third Quarter 2018 Preliminary Earnings and Dividend

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MONROE, Mich., Oct. 25, 2018 (GLOBE NEWSWIRE) — MBT Financial Corp. (NASDAQ: MBTF), the parent company of Monroe Bank & Trust, reported a preliminary net profit of $4,974,000 ($0.21 per share, basic and diluted), in the third quarter of 2018, compared to a profit of $3,933,000 ($0.17 per share, basic and diluted), in the third quarter of 2017. The profit for the first nine months of 2018 was $13,821,000 ($0.60 per share, basic and diluted), compared to $10,753,000 ($0.47 per share, basic and diluted) for the first nine months of 2017. The company also announced that it will pay a quarterly dividend of $0.10 per common share on November 15, 2018 to shareholders of record as of November 8, 2018. This is an increase of $0.04 per share compared to the dividend paid in the same quarter last year.
The Net Interest Income for the third quarter of 2018 increased $986,000, or 9.6% as the net interest margin improved from 3.38% in the third quarter of 2017 to 3.62% in the third quarter of 2018. Higher interest rates and the continued shifting of assets from investment securities to loans improved the yield on earning assets while the cost of interest bearing liabilities remained low.The Company did not record a provision for loan losses this quarter or in the third quarter of 2017. Asset quality continues to be strong, and recoveries of previously charged off loans exceeded charge offs during the third quarter of 2018. This provided sufficient growth in the Allowance for Loan Losses to maintain its adequacy even though the amount of loans increased. Total Loans increased $11.8 million, or 1.6% during the third quarter of 2018, and $57.6 million, or 8.3% so far this year. The Allowance for Loan and Lease Losses increased from $7.7 million at the end of 2017 to $8.0 million at the end of the third quarter of 2018. Due to the loan growth, the Allowance as a percent of loans decreased since the beginning of the year from 1.10% to 1.06%.Non-interest income for the third quarter of 2018 increased $5,000, or 0.1% compared to the third quarter of 2017. Excluding gains and losses on securities and other real estate transactions in both periods, the non-interest income increased $253,000, or 6.5%. Non-interest expense increased $206,000, or 2.3%, mainly due to increases in salaries and benefits, equipment, and EFT/ATM expenses.Total assets of the company decreased $8.3 million, or 0.6%, compared to December 31, 2017, to $1.34 billion. Capital decreased $11.3 million during the first nine months of 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. The ratio of equity to assets decreased from 9.85% at the end of 2017 to 9.06% at the end of the third quarter of 2018. The Bank’s Tier 1 Leverage ratio decreased from 10.33% as of December 31, 2017 to 9.86% as of September 30, 2018.H. Douglas Chaffin, President and CEO, commented, “We are pleased with our results for this quarter, as our loan growth reflected our service to our customers in Southeast Michigan and Northwest Ohio, and our earnings improvement provides value to our shareholders. On October 10, 2018, we announced that we signed a definitive agreement to merge with First Merchants Corporation (NASDAQ: FRME), 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.”Conference Call
MBT Financial Corp. will hold a conference call to discuss the Third Quarter 2018 results on Friday, October 26, 2018, 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.monroe.bank. The call can also be accessed in the United States by calling toll free (877) 510-3783. The toll free number for callers in Canada is (855) 669-9657 and international callers can access the call at (412) 902-4136. A replay will be available one hour after the conclusion of the call at (877) 344-7529, Conference #10124598. The replay is available to callers from Canada at (855) 669-9658 and international callers at (412) 317-0088. The replay will be available until November 26, 2018 at 9:00 a.m. Eastern. The webcast will be archived on the Company’s web site.
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.
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