MONROE, Mich., Jan. 28, 2019 (GLOBE NEWSWIRE) — 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
(734) 240-2341
julian.broggio@monroe.bank
| 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 | ||||||