MBTF MBT Financial Corporation

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 May 16, 2019 to shareholders of record as of May 9, 2019. This is an increase of $0.03 per share compared to the regular dividend paid in the same quarter last year.

Excluding securities losses and other merger related expenses, core earnings for the first quarter of 2019 were $4,319,000, or $0.19 per share, basic and diluted. This is an increase of 11% from the net profit of $3,902,000 recorded in the first quarter of 2018 ($0.17 per share, basic and diluted). During the first quarter of 2019, we liquidated a substantial portion of our investment portfolio in anticipation of our merger with First Merchants, which resulted in a loss from the sale of these securities in the amount of $11,646,000. This is consistent with the Accumulated Other Comprehensive Loss previously reflected on our balance sheet, and did not have a negative effect on capital. The preliminary net loss was $5,141,000 ($0.22 per share) in the first quarter of 2019.

The Net Interest Income for the first quarter of 2019 increased $1,082,000, or 10.3% compared to the first quarter of 2018 as the Net Interest Margin improved from 3.49% to 3.83%. The Company did not record a provision for loan losses this quarter, compared to a negative provision of $100,000 recorded in the first quarter of 2018. Excluding securities losses, non-interest income for the first quarter of 2019 was $3,759,000, a decrease of $126,000, or 3.2% compared to the first quarter of 2018 primarily due to lower service charges and other fees on deposit accounts. Non-interest expense increased $518,000, or 5.3% primarily due to the aforementioned merger related expenses.

Total assets of the company decreased $3.4 million, or 0.3%, compared to December 31, 2018, to $1.333 billion. Capital increased $2.6 million during the first quarter of 2019 because the securities losses realized in the first quarter were already included in Accumulated Other Comprehensive Income (Loss). Total loans decreased $1.8 million, or 0.2% in the first quarter of 2019 while total deposits increased $239,000, or less than 0.1%. The decrease in loan balances was the result of payment activity on mortgage loans and purchased consumer loans as well as scheduled principal payments on commercial participation loans. The loan pipeline remains strong at $70 million, and the amount of unfunded loan commitments increased significantly during the first quarter, from $131 million to $142 million.

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, which is expected to take place during the first half of 2019. 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.

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 expected to close in the first half of 2019, so the Company will not be providing its typical detailed earnings announcement and investor conference call. First Merchants announced their first quarter results and hosted a conference call earlier today. For information about First Merchants and the merger, and to access a replay of their call, please see the Investor Relations link on www.firstmerchants.com.

For more information about Monroe Bank & Trust, visit www.monroe.bank or contact:

Doug Chaffin	John Skibski
President & CEO	Executive Vice President & CFO
(734) 384-8123	(734) 242-1879
doug.chaffin@monroe.bank	john.skibski@monroe.bank

MBT FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
				Quarter Ended March 31,
Dollars in thousands (except per share data)				2019				2018
Interest Income
Interest and fees on loans				$	9,571			$	8,217
Interest on investment securities-
	Tax-exempt				296				404
	Taxable				1,174				2,210
Interest on balances due from banks					1,209				125
			Total interest income		12,250				10,956
Interest Expense
Interest on deposits					568				414
Interest on borrowed funds					64				6
			Total interest expense		632				420
Net Interest Income					11,618				10,536
Provision For (Recovery Of) Loan Losses					-				(100	)
Net Interest Income After
Provision For (Recovery Of) Loan Losses					11,618				10,636
Other Income
Income from wealth management services					1,161				1,185
Service charges and other fees					822				946
Debit Card income					701				720
Net gain on sales of securities					(11,646	)			(101	)
Net gain (loss) on other real estate owned					9				19
Origination fees on mortgage loans sold					69				62
Bank Owned Life Insurance income					338				353
Other					659				600
			Total other income		(7,887	)			3,784
Other Expenses
Salaries and employee benefits					6,064				5,962
Occupancy expense					729				721
Equipment expense					913				793
Marketing expense					292				377
Professional fees					843				594
EFT/ATM expense					291				259
Other real estate owned expense					22				15
FDIC deposit insurance assessment					89				107
Bonding and other insurance expense					429				132
Telephone expense					80				75
Other					558				757
			Total other expenses		10,310				9,792
Profit (Loss) Before Income Taxes					(6,579	)			4,628
Income Tax Expense (Benefit)					(1,438	)			726
Net Profit (Loss)				$	(5,141	)		$	3,902
Basic Earnings (Loss) Per Common Share				$	(0.22	)		$	0.17
Diluted Earnings (Loss) Per Common Share				$	(0.22	)		$	0.17
Dividends Declared Per Common Share				$	0.10			$	0.66

 

MBT FINANCIAL CORP.
CONSOLIDATED BALANCE SHEETS
			(Unaudited)
Dollars in thousands			March 31, 2019				December 31, 2018
Assets
Cash and Cash Equivalents
	Cash and due from banks
		Non-interest bearing	$	18,426			$	17,058
		Interest bearing		414,381				34,784
		Total cash and cash equivalents		432,807				51,842
Interest Bearing Time Deposits in Other Banks				600				10,796
Securities - Available for Sale				30,133				401,613
Equity Securities				7,450				7,415
Loans held for sale				-				488
Loans				766,877				768,660
Allowance for Loan Losses				(7,503	)			(7,771	)
Loans - Net				759,374				760,889
Accrued interest receivable and other assets				16,662				16,743
Other Real Estate Owned				58				692
Bank Owned Life Insurance				59,901				59,563
Premises and Equipment - Net				26,480				26,850
		Total assets	$	1,333,465			$	1,336,891
Liabilities
Deposits:
	Non-interest bearing		$	290,929			$	297,704
	Interest-bearing			892,220				885,206
		Total deposits		1,183,149				1,182,910
Federal Home Loan Bank advances				10,000				10,000
Accrued interest payable and other liabilities				10,028				16,314
		Total liabilities		1,203,177				1,209,224
Shareholders' Equity
Common stock (no par value)				23,565				23,453
Retained Earnings				106,477				113,921
Accumulated other comprehensive income (loss)				246				(9,707	)
		Total shareholders' equity		130,288				127,667
		Total liabilities and shareholders' equity	$	1,333,465			$	1,336,891