MONROE, Mich., March 7 /PRNewswire-FirstCall/ -- MBT Financial Corp. , the parent company of Monroe Bank & Trust, today issued an adjustment to its fourth quarter and full year 2005 earnings release dated January 12, 2006. The adjustment relates to the Company's recognition of the potential impairment of a large loan and the Company's corresponding increase in the amount of its Allowance for Loan and Lease Losses (ALLL) at December 31, 2005 to take into account the potential impairment of the loan.
During the ongoing finalization of its financial statements and preparation of its 10-K for the year ended December 31, 2005 and subsequent to the January 12, 2006 press release, MBT obtained information regarding the financial condition of a commercial loan customer that was inconsistent with financial information previously provided by the customer. As a consequence, Management determined that the loan may be impaired and that an additional provision of $740,000 to MBT's ALLL in the fourth quarter of 2005 was warranted.
This change affects MBT's unaudited financial statements for the three month and one year periods ended December 31, 2005. Net income for the fourth quarter and year ended December 31, 2005 was reduced by $480,000, or a $.02 decrease to previously reported basic earnings per share and a $.03 decrease to previously reported diluted earnings per share. Therefore, MBT Financial Corp.'s revised net income was $5,160,000 for the fourth quarter of 2005 and $17,979,000 for the year ended December 31, 2005. For the fourth quarter 2005, basic and diluted earnings per share were $.30 and $.29 respectively, while for the full year 2005, basic earnings per share were $1.04 and diluted earnings per share were $1.03.
These changes will be reflected in MBT Financial Corp.'s 10-K for the year ended December 31, 2005, which will be filed on or before March 16, 2006. We have set forth below MBT's consolidated financial highlights - unaudited, consolidated balance sheets - unaudited, and consolidated statements of income - unaudited for the fourth quarter and full year 2005. This data replaces the consolidated financial highlights - unaudited, consolidated balance sheets - unaudited, and consolidated statements of income - unaudited, contained in MBT Financial Corp.'s previous earnings release of January 12, 2006.
MBT FINANCIAL CORP.
CONSOLIDATED FINANCIAL HIGHLIGHTS - UNAUDITED
Quarterly
2005 2005 2005
(dollars in thousands except per share
data) 4th Qtr 3rd Qtr 2nd Qtr
EARNINGS
Net interest income $12,686 $13,113 $12,691
FTE Net interest income $13,243 $13,659 $13,253
Provision for loan and lease
losses $1,606 $4,100 $600
Non-interest income $3,656 $3,683 $3,664
Non-interest expense $7,856 $9,023 $8,210
Net income $5,160 $2,571 $5,369
Basic earnings per share $0.30 $0.15 $0.31
Diluted earnings per share $0.29 $0.15 $0.31
Average shares outstanding 17,222,943 17,282,699 17,337,452
Average diluted shares
outstanding 17,274,577 17,366,349 17,411,942
PERFORMANCE RATIOS
Return on average assets 1.26% 0.64% 1.37%
Return on average common equity 13.22% 6.45% 14.08%
Base Margin 3.20% 3.32% 3.27%
FTE Adjustment 0.14% 0.14% 0.15%
Loan Fees 0.11% 0.15% 0.17%
FTE Net Interest Margin 3.45% 3.61% 3.59%
Efficiency ratio 45.10% 43.09% 49.98%
Full-time equivalent employees 413 421 423
CAPITAL
Average equity to average assets 9.54% 9.88% 9.72%
Book value per share $8.82 $8.93 $9.09
Cash dividend per share $0.17 $0.17 $0.16
ASSET QUALITY
Loan Charge-Offs $1,423 $4,575 $698
Loan Recoveries $877 $465 $633
Net Charge-Offs $546 $4,110 $65
Allowance for loan and lease
losses $13,625 $12,565 $12,575
Nonaccrual Loans $16,212 $14,872 $27,990
Loans 90 days past due $101 $100 $48
Restructured loans $1,813 $2,731 $2,035
Total nonperforming loans $18,126 $17,703 $30,073
Other real estate owned $8,336 $8,894 $5,068
Nonperforming investment
securities $- $- $-
Total nonperforming assets $26,462 $26,597 $35,141
Net loan charge-offs to average
loans 0.22% 1.70% 0.03%
Allowance for losses to total
loans 1.38% 1.29% 1.30%
Nonperforming assets to Gross
Loans 2.67% 2.73% 3.63%
Nonperforming assets to total
assets 1.62% 1.65% 2.22%
Allowance to nonperforming assets 51.49% 47.24% 35.78%
END OF PERIOD BALANCES
Loans and leases $989,311 $972,936 $966,935
Total earning assets $1,528,017 $1,507,371 $1,492,957
Total assets $1,638,356 $1,610,286 $1,583,433
Deposits $1,184,710 $1,145,411 $1,106,180
Interest Bearing Liabilities $1,298,094 $1,295,735 $1,260,731
Shareholders' equity $151,619 $154,219 $157,140
Total Shares Outstanding 17,197,116 17,272,923 17,285,950
AVERAGE BALANCES
Loans and leases $977,770 $969,498 $953,503
Total earning assets $1,523,391 $1,499,601 $1,479,798
Total assets $1,623,108 $1,600,591 $1,572,992
Deposits $1,163,964 $1,139,831 $1,104,715
Interest Bearing Liabilities $1,299,820 $1,279,137 $1,259,412
Shareholders' equity $154,847 $158,097 $152,934
Quarterly
2005 2004
(dollars in thousands except per
share data) 1st Qtr 4th Qtr
EARNINGS
Net interest income $12,622 $13,454
FTE Net interest income $13,185 $14,079
Provision for loan and lease
losses $600 $691
Non-interest income $3,446 $3,793
Non-interest expense $8,729 $8,707
Net income $4,879 $5,442
Basic earnings per share $0.28 $0.32
Diluted earnings per share $0.28 $0.31
Average shares outstanding 17,498,000 17,426,995
Average diluted shares
outstanding 17,593,705 17,562,768
PERFORMANCE RATIOS
Return on average assets 1.26% 1.40%
Return on average common equity 12.72% 13.98%
Base Margin 3.30% 3.49%
FTE Adjustment 0.15% 0.17%
Loan Fees 0.17% 0.19%
FTE Net Interest Margin 3.62% 3.85%
Efficiency ratio 51.76% 47.47%
Full-time equivalent employees 404 396
CAPITAL
Average equity to average assets 9.92% 10.04%
Book value per share $8.79 $8.89
Cash dividend per share $0.16 $0.16
ASSET QUALITY
Loan Charge-Offs $2,644 $2,451
Loan Recoveries $559 $376
Net Charge-Offs $2,085 $2,075
Allowance for loan and lease
losses $12,040 $13,800
Nonaccrual Loans $27,625 $29,015
Loans 90 days past due $101 $230
Restructured loans $2,041 $3,715
Total nonperforming loans $29,767 $32,960
Other real estate owned $6,370 $6,958
Nonperforming investment
securities $- $-
Total nonperforming assets $36,137 $39,918
Net loan charge-offs to average
loans 0.89% 0.87%
Allowance for losses to total
loans 1.28% 1.46%
Nonperforming assets to Gross
Loans 3.84% 4.22%
Nonperforming assets to total
assets 2.33% 2.57%
Allowance to nonperforming
assets 33.32% 34.57%
END OF PERIOD BALANCES
Loans and leases $940,155 $945,881
Total earning assets $1,459,091 $1,465,322
Total assets $1,551,607 $1,552,279
Deposits $1,099,393 $1,100,711
Interest Bearing Liabilities $1,243,904 $1,237,742
Shareholders' equity $153,618 $155,346
Total Shares Outstanding 17,472,389 17,465,839
AVERAGE BALANCES
Loans and leases $949,978 $948,628
Total earning assets $1,475,802 $1,454,891
Total assets $1,567,950 $1,538,860
Deposits $1,117,572 $1,079,610
Interest Bearing Liabilities $1,253,664 $1,229,373
Shareholders' equity $155,580 $154,428
MBT FINANCIAL CORP.
CONSOLIDATED BALANCE SHEET - UNAUDITED
December 31, December 31,
Dollars in thousands 2005 2004
Assets
Cash and Cash Equivalents
Cash and due from banks $32,330 $20,540
Federal funds sold 5,000 14,000
Total cash and cash equivalents 37,330 34,540
Securities - Held to Maturity 76,467 84,141
Securities - Available for Sale 444,021 408,353
Federal Home Loan Bank stock - at cost 13,221 12,947
Loans held for sale 434 778
Loans - Net 975,252 931,303
Accrued interest receivable and other
assets 28,748 22,895
Bank Owned Life Insurance 36,252 35,152
Premises and Equipment - Net 26,631 22,170
Total assets $1,638,356 $1,552,279
Liabilities
Deposits:
Non-interest bearing $178,116 $149,469
Interest-bearing 1,006,594 951,242
Total deposits 1,184,710 1,100,711
Federal Home Loan Bank advances 256,500 256,500
Federal funds purchased - -
Repurchase agreements 35,000 30,000
Interest payable and other liabilities 10,527 9,722
Total liabilities 1,486,737 1,396,933
Stockholders' Equity
Common stock (no par value) - -
Additional paid-in capital 14,417 19,806
Retained Earnings 142,205 135,647
Accumulated other comprehensive income (5,003) (107)
Total stockholders' equity 151,619 155,346
Total liabilities and
stockholders' equity $1,638,356 $1,552,279
MBT FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
Quarter Ended December 31,
Dollars in thousands (except per
share data) 2005 2004
Interest Income
Interest and fees on loans $16,983 $15,259
Interest on investment securities-
Tax-exempt 1,272 1,355
Taxable 5,396 4,527
Interest on federal funds sold 29 8
Total interest income 23,680 21,149
Interest Expense
Interest on deposits 6,955 4,353
Interest on borrowed funds 4,039 3,342
Total interest expense 10,994 7,695
Net Interest Income 12,686 13,454
Provision For Loan Losses 1,606 691
Net Interest Income After
Provision For Loan Losses 11,080 12,763
Other Income
Income from trust services 1,112 1,058
Service charges and other fees 1,502 1,403
Net gain (loss) on sales of
securities 22 451
Origination fees on mortgage loans
sold 129 118
Bank Owned Life Insurance income 276 244
Other 615 519
Total other income 3,656 3,793
Other Expenses
Salaries and employee benefits 4,333 4,690
Occupancy expense 813 837
Other 2,710 3,180
Total other expenses 7,856 8,707
Income Before Provision
For Income Taxes 6,880 7,849
Provision For Income Taxes 1,720 2,407
Net Income $5,160 $5,442
Basic Earnings Per Common Share $0.30 $0.32
Diluted Earnings Per Common Share $0.29 $0.31
Dividends Declared Per Common Share $0.17 $0.16
MBT FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
Year Ended December 31,
Dollars in thousands (except per
share data) 2005 2004
Interest Income
Interest and fees on loans $64,578 $57,660
Interest on investment securities-
Tax-exempt 5,036 5,613
Taxable 19,864 16,420
Interest on federal funds sold 217 10
Total interest income 89,695 79,703
Interest Expense
Interest on deposits 23,578 14,923
Interest on borrowed funds 15,005 12,075
Total interest expense 38,583 26,998
Net Interest Income 51,112 52,705
Provision For Loan Losses 6,906 2,491
Net Interest Income After
Provision For Loan Losses 44,206 50,214
Other Income
Income from trust services 4,244 3,746
Service charges and other fees 5,833 5,476
Net gain on sales of securities 295 567
Origination fees on mortgage loans
sold 666 578
Bank Owned Life Insurance income 1,100 1,371
Other 2,311 2,038
Total other income 14,449 13,776
Other Expenses
Salaries and employee benefits 18,248 18,109
Occupancy expense 3,320 3,029
Other 12,250 11,478
Total other expenses 33,818 32,616
Income Before Provision
For Income Taxes 24,837 31,374
Provision For Income Taxes 6,858 8,775
Net Income $17,979 $22,599
Basic Earnings Per Common Share $1.04 $1.30
Diluted Earnings Per Common Share $1.03 $1.29
Dividends Declared Per Common Share $0.66 $0.62
About the Company
MBT Financial Corp., a single bank holding company headquartered in Monroe, Michigan is the parent company of Monroe Bank & Trust (MBT). Founded in 1858, MBT is one of the largest community banks in Southeast Michigan, with more than $1.6 billion in assets. MBT is a full service bank offering personal and business accounts and complete credit options, and MBT's Wealth Management Group is one of the area's largest. With 26 offices, 38 ATMs, PhoneLink telephone banking and eLink online banking, MBT prides itself on an incomparable level of service and access for its customers. Visit MBT's web site at http://www.mbandt.com/ .
Forward-Looking Statements
Certain statements contained herein are not based on historical facts and are "forward-looking statements" within the meaning of Section 21A of the Securities Exchange Act of 1934. Forward-looking statements which are based on various assumptions (some of which are beyond the Company's control), may be identified by reference to a future period or periods, or by the use of forward-looking terminology, such as "may," "will," "believe," "expect," "estimate," "anticipate," "continue," or similar terms or variations on those terms, or the negative of these terms. Actual results could differ materially from those set forth in forward-looking statements, due to a variety of factors, including, but not limited to, those related to the economic environment, particularly in the market areas in which the company operates, competitive products and pricing, fiscal and monetary policies of the U.S. Government, changes in government regulations affecting financial institutions, including regulatory fees and capital requirements, changes in prevailing interest rates, acquisitions and the integration of acquired businesses, credit risk management, asset/liability management, the financial and securities markets and the availability of and costs associated with sources of liquidity. The Corporation undertakes no obligation to update or clarify forward-looking statements, whether as a result of new information, future events or otherwise.
