EXHIBIT 99
 |
102 E. Front St., Monroe, MI 48161 |
PRESS RELEASE
April 25, 2019
MBT Financial Corp. Announces Dividend and Preliminary First Quarter 2019 Highlights
Monroe, Mich. – 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 | ||||