EXHIBIT 99

 

 

  102 E. Front St., Monroe, MI 48161

 

PRESS RELEASE

October 25, 2018

 

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

 

Monroe, Mich. – 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.

Or, contact:

Julian Broggio

SVP, Director of Marketing

(734) 240-2341

julian.broggio@monroe.bank

 

 

MBT FINANCIAL CORP.

CONSOLIDATED FINANCIAL HIGHLIGHTS - UNAUDITED

 

   

Quarterly

   

Year to Date

 
   

2018

   

2018

   

2018

   

2017

   

2017

                 

(dollars in thousands except per share data)

 

3rd Qtr

   

2nd Qtr

   

1st Qtr

   

4th Qtr

   

3rd Qtr

   

2018

   

2017

 
                                                       

EARNINGS

                                                       

Net interest income

  $ 11,217     $ 10,833     $ 10,536     $ 10,373     $ 10,231     $ 32,586     $ 29,690  

FTE Net interest income

  $ 11,321     $ 10,945     $ 10,638     $ 10,552     $ 10,394     $ 32,904     $ 30,160  

Provision for loan and lease losses

  $ -     $ -     $ (100 )   $ (500 )   $ -     $ (100 )   $ (200 )

Non interest income

  $ 4,040     $ 4,403     $ 3,784     $ 3,657     $ 4,035     $ 12,227     $ 12,225  

Non interest expense

  $ 9,156     $ 9,186     $ 9,792     $ 9,115     $ 8,950     $ 28,134     $ 27,020  

Net income

  $ 4,974     $ 4,945     $ 3,902     $ (144 )   $ 3,933     $ 13,821     $ 10,753  

Basic earnings per share

  $ 0.21     $ 0.22     $ 0.17     $ (0.01 )   $ 0.17     $ 0.60     $ 0.47  

Diluted earnings per share

  $ 0.21     $ 0.21     $ 0.17     $ (0.01 )   $ 0.17     $ 0.60     $ 0.47  

Average shares outstanding

    22,985,176       22,978,225       22,943,736       22,884,010       22,871,451       22,969,182       22,852,935  

Average diluted shares outstanding

    23,114,431       23,101,035       23,063,200       23,044,241       23,040,960       23,092,771       23,034,533  
                                                         

PERFORMANCE RATIOS

                                                       

Return on average assets

    1.47 %     1.52 %     1.19 %     -0.04 %     1.18 %     1.39 %     1.09 %

Return on average common equity

    16.22 %     16.63 %     12.80 %     -0.42 %     11.54 %     15.21 %     10.85 %
                                                         

Base Margin

    3.60 %     3.57 %     3.48 %     3.37 %     3.30 %     3.55 %     3.24 %

FTE Adjustment

    0.03 %     0.04 %     0.03 %     0.06 %     0.05 %     0.03 %     0.05 %

Loan Fees

    -0.01 %     0.03 %     0.01 %     0.00 %     0.03 %     0.01 %     0.01 %

FTE Net Interest Margin

    3.62 %     3.64 %     3.52 %     3.43 %     3.38 %     3.59 %     3.30 %
                                                         

Efficiency ratio

    59.09 %     61.79 %     67.41 %     62.80 %     62.52 %     62.68 %     64.33 %

Full-time equivalent employees

    289       280       281       288       295       283       290  
                                                         

CAPITAL

                                                       

Average equity to average assets

    9.07 %     9.11 %     9.31 %     10.34 %     10.21 %     9.16 %     10.01 %

Book value per share

  $ 5.28     $ 5.24     $ 5.11     $ 5.79     $ 5.94     $ 5.28     $ 5.94  

Cash dividend per share

  $ 0.10     $ 0.07     $ 0.66     $ 0.06     $ 0.06     $ 0.83     $ 0.86  
                                                         

ASSET QUALITY

                                                       

Loan Charge-Offs

  $ 97     $ 51     $ 12     $ 14     $ 306     $ 160     $ 814  

Loan Recoveries

  $ 125     $ 124     $ 331     $ 170     $ 179     $ 580     $ 566  

Net Charge-Offs

  $ (28 )   $ (73 )   $ (319 )   $ (156 )   $ 127     $ (420 )   $ 248  
                                                         

Allowance for loan and lease losses

  $ 7,986     $ 7,958     $ 7,885     $ 7,666     $ 8,010     $ 7,986     $ 8,010  
                                                         

Nonaccrual Loans

  $ 4,494     $ 3,360     $ 3,453     $ 3,658     $ 3,050     $ 4,494     $ 3,050  

Loans 90 days past due

  $ 5     $ -     $ -     $ 3     $ 5     $ 5     $ 5  

Restructured loans

  $ 6,854     $ 8,211     $ 8,290     $ 9,625     $ 9,859     $ 6,854     $ 9,859  

Total non performing loans

  $ 11,353     $ 11,571     $ 11,743     $ 13,286     $ 12,914     $ 11,353     $ 12,914  

Other real estate owned & other assets

  $ 1,445     $ 394     $ 1,229     $ 1,452     $ 1,686     $ 1,445     $ 1,686  

Total non performing assets

  $ 12,798     $ 11,965     $ 12,972     $ 14,738     $ 14,600     $ 12,798     $ 14,600  
                                                         

Classified Loans

  $ 10,458     $ 9,604     $ 8,866     $ 8,273     $ 9,206     $ 10,458     $ 9,206  

Other real estate owned & other assets

  $ 1,445     $ 394     $ 1,229     $ 1,452     $ 1,686     $ 1,445     $ 1,686  

Total classified assets

  $ 11,903     $ 9,998     $ 10,095     $ 9,725     $ 10,892     $ 11,903     $ 10,892  
                                                         

Net loan charge-offs to average loans

    -0.01 %     -0.04 %     -0.18 %     -0.09 %     0.07 %     -0.08 %     0.05 %

Allowance for loan losses to total loans

    1.06 %     1.07 %     1.09 %     1.10 %     1.15 %     1.06 %     1.15 %

Non performing loans to gross loans

    1.51 %     1.56 %     1.63 %     1.91 %     1.86 %     1.51 %     1.86 %

Non performing assets to total assets

    0.96 %     0.91 %     0.98 %     1.09 %     1.08 %     0.96 %     1.08 %

Classified assets to total capital

    8.36 %     7.17 %     7.44 %     6.64 %     7.59 %     8.36 %     7.59 %

Allowance to non performing loans

    70.34 %     68.78 %     67.15 %     57.70 %     62.03 %     70.34 %     62.03 %
                                                         

END OF PERIOD BALANCES

                                                       

Loans and leases

  $ 752,895     $ 741,120     $ 722,640     $ 695,325     $ 693,866     $ 752,895     $ 693,866  

Total earning assets

  $ 1,223,623     $ 1,208,138     $ 1,214,209     $ 1,229,425     $ 1,220,844     $ 1,223,623     $ 1,220,844  

Total assets

  $ 1,339,122     $ 1,321,885     $ 1,326,056     $ 1,347,420     $ 1,347,352     $ 1,339,122     $ 1,347,352  

Deposits

  $ 1,166,276     $ 1,147,494     $ 1,193,363     $ 1,198,164     $ 1,195,335     $ 1,166,276     $ 1,195,335  

Interest Bearing Liabilities

  $ 909,545     $ 892,760     $ 900,120     $ 898,326     $ 897,408     $ 909,545     $ 897,408  

Shareholders' equity

  $ 121,351     $ 120,354     $ 117,502     $ 132,658     $ 135,969     $ 121,351     $ 135,969  

Tier 1 Capital (Bank)

  $ 134,354     $ 131,441     $ 127,783     $ 138,819     $ 135,470     $ 134,354     $ 135,470  

Total Shares Outstanding

    22,990,208       22,983,255       22,973,261       22,907,844       22,875,505       22,990,208       22,875,505  
                                                         

AVERAGE BALANCES

                                                       

Loans and leases

  $ 750,909     $ 726,746     $ 705,874     $ 693,586     $ 686,259     $ 728,010     $ 671,995  

Total earning assets

  $ 1,238,252     $ 1,207,102     $ 1,224,359     $ 1,220,426     $ 1,220,620     $ 1,223,291     $ 1,221,946  

Total assets

  $ 1,341,473     $ 1,308,543     $ 1,327,708     $ 1,324,847     $ 1,324,723     $ 1,325,958     $ 1,323,295  

Deposits

  $ 1,176,264     $ 1,166,187     $ 1,192,570     $ 1,184,592     $ 1,187,768     $ 1,178,281     $ 1,188,546  

Interest Bearing Liabilities

  $ 908,079     $ 892,433     $ 898,089     $ 884,979     $ 895,376     $ 899,570     $ 905,615  

Shareholders' equity

  $ 121,690     $ 119,260     $ 123,636     $ 136,963     $ 135,188     $ 121,522     $ 132,473  
 

 

 

MBT FINANCIAL CORP.

CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED

 

   

Quarter Ended September 30,

   

Nine Months Ended September 30,

 

Dollars in thousands (except per share data)

 

2018

   

2017

   

2018

   

2017

 

Interest Income

                               

Interest and fees on loans

  $ 9,164     $ 8,095     $ 26,117     $ 23,168  

Interest on investment securities-

                               

Tax-exempt

    415       327       1,262       943  

Taxable

    2,120       2,054       6,417       6,507  

Interest on balances due from banks

    193       182       376       392  

Total interest income

    11,892       10,658       34,172       31,010  
                                 

Interest Expense

                               

Interest on deposits

    456       427       1,270       1,317  

Interest on borrowed funds

    219       -       316       3  

Total interest expense

    675       427       1,586       1,320  
                                 

Net Interest Income

    11,217       10,231       32,586       29,690  

Provision For (Recovery Of) Loan Losses

    -       -       (100 )     (200 )
                                 

Net Interest Income After

                               

Provision For (Recovery Of) Loan Losses

    11,217       10,231       32,686       29,890  
                                 

Other Income

                               

Income from wealth management services

    1,193       1,155       3,556       3,830  

Service charges and other fees

    993       1,076       2,894       3,136  

Debit Card income

    763       719       2,269       2,147  

Net gain on sales of securities

    (91 )     150       (193 )     227  

Net gain (loss) on other real estate owned

    -       7       536       (89 )

Origination fees on mortgage loans sold

    152       87       306       261  

Bank Owned Life Insurance income

    350       377       1,052       1,130  

Other

    680       464       1,807       1,583  

Total other income

    4,040       4,035       12,227       12,225  
                                 

Other Expenses

                               

Salaries and employee benefits

    5,381       5,313       16,714       16,020  

Occupancy expense

    660       694       2,001       2,124  

Equipment expense

    881       783       2,548       2,271  

Marketing expense

    389       375       1,233       961  

Professional fees

    550       570       1,736       1,779  

EFT/ATM expense

    297       256       844       763  

Other real estate owned expense

    25       33       61       95  

FDIC deposit insurance assessment

    97       107       296       321  

Bonding and other insurance expense

    129       120       398       367  

Telephone expense

    84       83       233       302  

Other

    663       616       2,070       2,017  

Total other expenses

    9,156       8,950       28,134       27,020  
                                 

Profit Before Income Taxes

    6,101       5,316       16,779       15,095  

Income Tax Expense

    1,127       1,383       2,958       4,342  

Net Profit

  $ 4,974     $ 3,933     $ 13,821     $ 10,753  
                                 

Basic Earnings Per Common Share

  $ 0.21     $ 0.17     $ 0.60     $ 0.47  
                                 

Diluted Earnings Per Common Share

  $ 0.21     $ 0.17     $ 0.60     $ 0.47  
                                 

Dividends Declared Per Common Share

  $ 0.10     $ 0.06     $ 0.83     $ 0.86  

 

 

 

MBT FINANCIAL CORP.

CONSOLIDATED BALANCE SHEETS

 

   

(Unaudited)

         

Dollars in thousands

 

September 30, 2018

   

December 31, 2017

 
                 

Assets

               

Cash and Cash Equivalents

               

Cash and due from banks

               

Non-interest bearing

  $ 17,436     $ 18,233  

Interest bearing

    20,548       34,777  

Total cash and cash equivalents

    37,984       53,010  
                 

Interest Bearing Time Deposits in Other Banks

    11,946       15,196  

Securities - Held to Maturity

    31,073       37,163  

Securities - Available for Sale

    399,758       442,816  

Equity Securities

    7,403       4,148  

Loans held for sale

    183       346  
                 

Loans

    752,712       694,979  

Allowance for Loan Losses

    (7,986 )     (7,666 )

Loans - Net

    744,726       687,313  
                 

Accrued interest receivable and other assets

    19,187       20,463  

Other Real Estate Owned

    997       1,412  

Bank Owned Life Insurance

    59,205       58,153  

Premises and Equipment - Net

    26,660       27,400  

Total assets

  $ 1,339,122     $ 1,347,420  
                 

Liabilities

               

Deposits:

               

Non-interest bearing

  $ 291,731     $ 299,838  

Interest-bearing

    874,545       898,326  

Total deposits

    1,166,276       1,198,164  
                 

Federal Home Loan Bank advances

    35,000       -  

Accrued interest payable and other liabilities

    16,495       16,598  

Total liabilities

    1,217,771       1,214,762  
                 

Shareholders' Equity

               

Common stock (no par value)

    23,403       22,840  

Retained Earnings

    112,343       117,524  

Unearned Compensation

    (19 )     -  

Accumulated other comprehensive loss

    (14,376 )     (7,706 )

Total shareholders' equity

    121,351       132,658  

Total liabilities and shareholders' equity

  $ 1,339,122     $ 1,347,420  

 

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