Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - MBT FINANCIAL CORP | mbtf20180725_8k.htm |
EXHIBIT 99
 |
102 E. Front St., Monroe, MI 48161 |
PRESS RELEASE
July 26, 2018
MBT Financial Corp. Announces Second Quarter 2018
Preliminary Earnings and Dividend Increase
Monroe, Mich. – MBT Financial Corp. (NASDAQ: MBTF), the parent company of Monroe Bank & Trust, reported a preliminary net profit of $4,945,000 ($0.22 per basic share and $0.21 per diluted share), in the second quarter of 2018, compared to a profit of $3,640,000 ($0.16 per share, basic and diluted), in the second quarter of 2017. The profit for the first six months of 2018 was $8,847,000 ($0.39 per basic share and $0.38 per diluted share), compared to $6,820,000 ($0.30 per share, basic and diluted) for the first six months of 2017. The company also announced that it will pay a quarterly dividend of $0.10 per common share on August 16, 2018 to shareholders of record as of August 9, 2018. This is an increase of $0.03 per share compared to the dividend paid last quarter and an increase of $0.04 compared to the dividend paid in the same quarter last year.
The Net Interest Income for the second quarter of 2018 increased $969,000, or 9.8% as the net interest margin improved from 3.31% in the second quarter of 2017 to 3.64% in the second quarter of 2018 as higher interest rates and shifting 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 second quarter of 2017. Asset quality continues to be strong, and recoveries of previously charged off loans exceeded charge offs during the second 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 $18.5 million, or 2.6% during the second quarter quarter of 2018, and $45.8 million, or 6.6% 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 second 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 1.07%.
Non-interest income for the second quarter of 2018 increased $33,000, or 0.8% compared to the second quarter of 2017. Excluding gains and losses on securities and other real estate transactions in both periods and an adjustment to recognize wealth management income on an accrual basis in 2017, the non-interest income decreased $89,000, or 2.2%. Non-interest income in the second quarter of 2018 included $517,000 of gains on the sales of Other Real Estate. Non-interest expense increased $178,000, or 2.0%, mainly due to increases in salaries and benefits, equipment, and marketing expenses.
Total assets of the company decreased $25.5 million, or 1.9%, compared to December 31, 2017, to $1.32 billion. Capital decreased $12.3 million during the first six months of 2018 primarily because the payment of the special and regular dividends exceeded the net income. The ratio of equity to assets decreased from 9.85% at the end of 2017 to 9.10% at the end of the second quarter of 2018. The Bank’s Tier 1 Leverage ratio decreased from 10.33% as of December 31, 2017 to 9.89% as of June 30, 2018.
H. Douglas Chaffin, President and CEO, commented, “We continue to see solid loan growth, and the improvement in net interest margin combined with the effects of the Tax Cuts and Jobs Act contributed to the substantial improvement in earnings this quarter. Our new business pipeline remains strong and we expect loan growth to continue the rest of this year, which should lead to further margin improvement. Notably, we also expect credit quality to remain strong, as we see nothing that might inhibit our strong quality metrics in the near term. Our focus on managing our capital has also allowed us to bring more value to our shareholders, and the increase in the quarterly dividend we announced today reflects a higher payout ratio. Our earnings growth trend has been strong, and a consistent increase in the dividend will decrease the need for the special dividends we used in the past three years. We will continue to keep our eyes open for the right opportunities to grow through strategic acquisitions, while remaining disciplined in that regard. We remain confident in our ability to maintain our position as the premier independent provider of financial services in the communities we serve.”
Conference Call
MBT Financial Corp. will hold a conference call to discuss the Second Quarter 2018 results on Friday, July 27, 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 #10121798. 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 August 27, 2018 at 9:00 a.m. Eastern. The webcast will be archived on the Company’s web site and available for twelve months following the call.
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 independently owned 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
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MBT FINANCIAL CORP. |
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CONSOLIDATED FINANCIAL HIGHLIGHTS - UNAUDITED |
|
Quarterly |
Year to Date |
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|
2018 |
2018 |
2017 |
2017 |
2017 |
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|
(dollars in thousands except per share data) |
2nd Qtr |
1st Qtr |
4th Qtr |
3rd Qtr |
2nd Qtr |
2018 |
2017 |
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|
EARNINGS |
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|
Net interest income |
$ | 10,833 | $ | 10,536 | $ | 10,373 | $ | 10,231 | $ | 9,864 | $ | 21,369 | $ | 19,459 | ||||||||||||||
|
FTE Net interest income |
$ | 10,945 | $ | 10,638 | $ | 10,552 | $ | 10,394 | $ | 10,017 | $ | 21,583 | $ | 19,766 | ||||||||||||||
|
Provision for loan and lease losses |
$ | - | $ | (100 | ) | $ | (500 | ) | $ | - | $ | - | $ | (100 | ) | $ | (200 | ) | ||||||||||
|
Non interest income |
$ | 4,403 | $ | 3,784 | $ | 3,657 | $ | 4,035 | $ | 4,370 | $ | 8,187 | $ | 8,190 | ||||||||||||||
|
Non interest expense |
$ | 9,186 | $ | 9,792 | $ | 9,115 | $ | 8,950 | $ | 9,008 | $ | 18,978 | $ | 18,070 | ||||||||||||||
|
Net income |
$ | 4,945 | $ | 3,902 | $ | (144 | ) | $ | 3,933 | $ | 3,640 | $ | 8,847 | $ | 6,820 | |||||||||||||
|
Basic earnings per share |
$ | 0.22 | $ | 0.17 | $ | (0.01 | ) | $ | 0.17 | $ | 0.16 | $ | 0.39 | $ | 0.30 | |||||||||||||
|
Diluted earnings per share |
$ | 0.21 | $ | 0.17 | $ | (0.01 | ) | $ | 0.17 | $ | 0.16 | $ | 0.38 | $ | 0.30 | |||||||||||||
|
Average shares outstanding |
22,978,225 | 22,943,736 | 22,884,010 | 22,871,451 | 22,865,529 | 22,961,076 | 22,843,523 | |||||||||||||||||||||
|
Average diluted shares outstanding |
23,101,035 | 23,063,200 | 23,044,241 | 23,040,960 | 23,006,766 | 23,083,153 | 22,987,803 | |||||||||||||||||||||
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PERFORMANCE RATIOS |
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Return on average assets |
1.52 | % | 1.19 | % | -0.04 | % | 1.18 | % | 1.11 | % | 1.35 | % | 1.04 | % | ||||||||||||||
|
Return on average common equity |
16.63 | % | 12.80 | % | -0.42 | % | 11.54 | % | 11.14 | % | 14.69 | % | 10.49 | % | ||||||||||||||
|
Base Margin |
3.57 | % | 3.48 | % | 3.37 | % | 3.30 | % | 3.25 | % | 3.52 | % | 3.20 | % | ||||||||||||||
|
FTE Adjustment |
0.04 | % | 0.03 | % | 0.06 | % | 0.05 | % | 0.05 | % | 0.04 | % | 0.05 | % | ||||||||||||||
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Loan Fees |
0.03 | % | 0.01 | % | 0.00 | % | 0.03 | % | 0.01 | % | 0.02 | % | 0.01 | % | ||||||||||||||
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FTE Net Interest Margin |
3.64 | % | 3.52 | % | 3.43 | % | 3.38 | % | 3.31 | % | 3.58 | % | 3.26 | % | ||||||||||||||
|
Efficiency ratio |
61.79 | % | 67.41 | % | 62.80 | % | 62.52 | % | 64.14 | % | 64.57 | % | 65.27 | % | ||||||||||||||
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Full-time equivalent employees |
280 | 281 | 288 | 295 | 287 | 281 | 287 | |||||||||||||||||||||
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CAPITAL |
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Average equity to average assets |
9.11 | % | 9.31 | % | 10.34 | % | 10.21 | % | 9.95 | % | 9.21 | % | 9.91 | % | ||||||||||||||
|
Book value per share |
$ | 5.24 | $ | 5.11 | $ | 5.79 | $ | 5.94 | $ | 5.87 | $ | 5.24 | $ | 5.87 | ||||||||||||||
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Cash dividend per share |
$ | 0.07 | $ | 0.66 | $ | 0.06 | $ | 0.06 | $ | 0.05 | $ | 0.73 | $ | 0.80 | ||||||||||||||
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ASSET QUALITY |
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Loan Charge-Offs |
$ | 51 | $ | 12 | $ | 14 | $ | 306 | $ | 396 | $ | 63 | $ | 508 | ||||||||||||||
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Loan Recoveries |
$ | 124 | $ | 331 | $ | 170 | $ | 179 | $ | 199 | $ | 455 | $ | 387 | ||||||||||||||
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Net Charge-Offs |
$ | (73 | ) | $ | (319 | ) | $ | (156 | ) | $ | 127 | $ | 197 | $ | (392 | ) | $ | 121 | ||||||||||
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Allowance for loan and lease losses |
$ | 7,958 | $ | 7,885 | $ | 7,666 | $ | 8,010 | $ | 8,137 | $ | 7,958 | $ | 8,137 | ||||||||||||||
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Nonaccrual Loans |
$ | 3,360 | $ | 3,453 | $ | 3,658 | $ | 3,050 | $ | 4,143 | $ | 3,360 | $ | 4,143 | ||||||||||||||
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Loans 90 days past due |
$ | - | $ | - | $ | 3 | $ | 5 | $ | 3 | $ | - | $ | 3 | ||||||||||||||
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Restructured loans |
$ | 8,211 | $ | 8,290 | $ | 9,625 | $ | 9,859 | $ | 10,103 | $ | 8,211 | $ | 10,103 | ||||||||||||||
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Total non performing loans |
$ | 11,571 | $ | 11,743 | $ | 13,286 | $ | 12,914 | $ | 14,249 | $ | 11,571 | $ | 14,249 | ||||||||||||||
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Other real estate owned & other assets |
$ | 394 | $ | 1,229 | $ | 1,452 | $ | 1,686 | $ | 1,542 | $ | 394 | $ | 1,542 | ||||||||||||||
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Total non performing assets |
$ | 11,965 | $ | 12,972 | $ | 14,738 | $ | 14,600 | $ | 15,791 | $ | 11,965 | $ | 15,791 | ||||||||||||||
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Classified Loans |
$ | 9,604 | $ | 8,866 | $ | 8,273 | $ | 9,206 | $ | 10,599 | $ | 9,604 | $ | 10,599 | ||||||||||||||
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Other real estate owned & other assets |
$ | 394 | $ | 1,229 | $ | 1,452 | $ | 1,686 | $ | 1,542 | $ | 394 | $ | 1,542 | ||||||||||||||
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Total classified assets |
$ | 9,998 | $ | 10,095 | $ | 9,725 | $ | 10,892 | $ | 12,141 | $ | 9,998 | $ | 12,141 | ||||||||||||||
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Net loan charge-offs to average loans |
-0.04 | % | -0.18 | % | -0.09 | % | 0.07 | % | 0.12 | % | -0.11 | % | 0.04 | % | ||||||||||||||
|
Allowance for loan losses to total loans |
1.07 | % | 1.09 | % | 1.10 | % | 1.15 | % | 1.19 | % | 1.07 | % | 1.19 | % | ||||||||||||||
|
Non performing loans to gross loans |
1.56 | % | 1.63 | % | 1.91 | % | 1.86 | % | 2.08 | % | 1.56 | % | 2.08 | % | ||||||||||||||
|
Non performing assets to total assets |
0.91 | % | 0.98 | % | 1.09 | % | 1.08 | % | 1.19 | % | 0.91 | % | 1.19 | % | ||||||||||||||
|
Classified assets to total capital |
7.17 | % | 7.44 | % | 6.64 | % | 7.59 | % | 8.63 | % | 7.17 | % | 8.63 | % | ||||||||||||||
|
Allowance to non performing loans |
68.78 | % | 67.15 | % | 57.70 | % | 62.03 | % | 57.11 | % | 68.78 | % | 57.11 | % | ||||||||||||||
|
END OF PERIOD BALANCES |
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|
Loans and leases |
$ | 741,120 | $ | 722,640 | $ | 695,325 | $ | 693,866 | $ | 683,648 | $ | 741,120 | $ | 683,648 | ||||||||||||||
|
Total earning assets |
$ | 1,208,138 | $ | 1,214,209 | $ | 1,229,425 | $ | 1,220,844 | $ | 1,201,903 | $ | 1,208,138 | $ | 1,201,903 | ||||||||||||||
|
Total assets |
$ | 1,321,885 | $ | 1,326,056 | $ | 1,347,420 | $ | 1,347,352 | $ | 1,326,392 | $ | 1,321,885 | $ | 1,326,392 | ||||||||||||||
|
Deposits |
$ | 1,147,494 | $ | 1,193,363 | $ | 1,198,164 | $ | 1,195,335 | $ | 1,177,069 | $ | 1,147,494 | $ | 1,177,069 | ||||||||||||||
|
Interest Bearing Liabilities |
$ | 892,760 | $ | 900,120 | $ | 898,326 | $ | 897,408 | $ | 886,474 | $ | 892,760 | $ | 886,474 | ||||||||||||||
|
Shareholders' equity |
$ | 120,354 | $ | 117,502 | $ | 132,658 | $ | 135,969 | $ | 134,222 | $ | 120,354 | $ | 134,222 | ||||||||||||||
|
Tier 1 Capital (Bank) |
$ | 131,441 | $ | 127,783 | $ | 138,819 | $ | 135,470 | $ | 132,565 | $ | 131,441 | $ | 132,565 | ||||||||||||||
|
Total Shares Outstanding |
22,983,255 | 22,973,261 | 22,907,844 | 22,875,505 | 22,870,082 | 22,983,255 | 22,870,082 | |||||||||||||||||||||
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AVERAGE BALANCES |
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|
Loans and leases |
$ | 726,746 | $ | 705,874 | $ | 693,586 | $ | 686,259 | $ | 672,849 | $ | 716,368 | $ | 664,744 | ||||||||||||||
|
Total earning assets |
$ | 1,207,102 | $ | 1,224,359 | $ | 1,220,426 | $ | 1,220,620 | $ | 1,215,360 | $ | 1,215,684 | $ | 1,222,615 | ||||||||||||||
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Total assets |
$ | 1,308,543 | $ | 1,327,708 | $ | 1,324,847 | $ | 1,324,723 | $ | 1,316,081 | $ | 1,318,072 | $ | 1,322,569 | ||||||||||||||
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Deposits |
$ | 1,166,187 | $ | 1,192,570 | $ | 1,184,592 | $ | 1,187,768 | $ | 1,183,645 | $ | 1,179,306 | $ | 1,188,943 | ||||||||||||||
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Interest Bearing Liabilities |
$ | 892,433 | $ | 898,089 | $ | 884,979 | $ | 895,376 | $ | 904,581 | $ | 895,246 | $ | 910,820 | ||||||||||||||
|
Shareholders' equity |
$ | 119,260 | $ | 123,636 | $ | 136,963 | $ | 135,188 | $ | 131,015 | $ | 121,436 | $ | 131,092 | ||||||||||||||
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MBT FINANCIAL CORP. |
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CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED |
|
Quarter Ended June 30, |
Six Months Ended June 30, |
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Dollars in thousands (except per share data) |
2018 |
2017 |
2018 |
2017 |
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Interest Income |
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Interest and fees on loans |
$ | 8,736 | $ | 7,709 | $ | 16,953 | $ | 15,073 | ||||||||
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Interest on investment securities- |
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Tax-exempt |
443 | 306 | 847 | 616 | ||||||||||||
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Taxable |
2,087 | 2,185 | 4,297 | 4,453 | ||||||||||||
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Interest on balances due from banks |
58 | 101 | 183 | 210 | ||||||||||||
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Total interest income |
11,324 | 10,301 | 22,280 | 20,352 | ||||||||||||
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Interest Expense |
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Interest on deposits |
400 | 434 | 814 | 890 | ||||||||||||
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Interest on borrowed funds |
91 | 3 | 97 | 3 | ||||||||||||
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Total interest expense |
491 | 437 | 911 | 893 | ||||||||||||
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Net Interest Income |
10,833 | 9,864 | 21,369 | 19,459 | ||||||||||||
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Provision For (Recovery Of) Loan Losses |
- | - | (100 | ) | (200 | ) | ||||||||||
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Net Interest Income After |
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Provision For (Recovery Of) Loan Losses |
10,833 | 9,864 | 21,469 | 19,659 | ||||||||||||
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Other Income |
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Income from wealth management services |
1,178 | 1,547 | 2,363 | 2,675 | ||||||||||||
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Service charges and other fees |
955 | 1,046 | 1,901 | 2,060 | ||||||||||||
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Debit Card income |
786 | 748 | 1,506 | 1,428 | ||||||||||||
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Net gain on sales of securities |
(1 | ) | 67 | (102 | ) | 77 | ||||||||||
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Net gain (loss) on other real estate owned |
517 | (62 | ) | 536 | (96 | ) | ||||||||||
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Origination fees on mortgage loans sold |
92 | 115 | 154 | 174 | ||||||||||||
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Bank Owned Life Insurance income |
349 | 412 | 702 | 753 | ||||||||||||
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Other |
527 | 497 | 1,127 | 1,119 | ||||||||||||
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Total other income |
4,403 | 4,370 | 8,187 | 8,190 | ||||||||||||
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Other Expenses |
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Salaries and employee benefits |
5,371 | 5,273 | 11,333 | 10,707 | ||||||||||||
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Occupancy expense |
620 | 682 | 1,341 | 1,430 | ||||||||||||
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Equipment expense |
874 | 791 | 1,667 | 1,488 | ||||||||||||
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Marketing expense |
467 | 302 | 844 | 586 | ||||||||||||
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Professional fees |
592 | 620 | 1,186 | 1,209 | ||||||||||||
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EFT/ATM expense |
288 | 259 | 547 | 507 | ||||||||||||
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Other real estate owned expense |
21 | 30 | 36 | 62 | ||||||||||||
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FDIC deposit insurance assessment |
92 | 107 | 199 | 214 | ||||||||||||
|
Bonding and other insurance expense |
137 | 125 | 269 | 247 | ||||||||||||
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Telephone expense |
74 | 103 | 149 | 219 | ||||||||||||
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Other |
650 | 716 | 1,407 | 1,401 | ||||||||||||
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Total other expenses |
9,186 | 9,008 | 18,978 | 18,070 | ||||||||||||
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Profit Before Income Taxes |
6,050 | 5,226 | 10,678 | 9,779 | ||||||||||||
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Income Tax Expense |
1,105 | 1,586 | 1,831 | 2,959 | ||||||||||||
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Net Profit |
$ | 4,945 | $ | 3,640 | $ | 8,847 | $ | 6,820 | ||||||||
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Basic Earnings Per Common Share |
$ | 0.22 | $ | 0.16 | $ | 0.39 | $ | 0.30 | ||||||||
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Diluted Earnings Per Common Share |
$ | 0.21 | $ | 0.16 | $ | 0.38 | $ | 0.30 | ||||||||
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Dividends Declared Per Common Share |
$ | 0.07 | $ | 0.05 | $ | 0.73 | $ | 0.80 | ||||||||
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MBT FINANCIAL CORP. |
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CONSOLIDATED BALANCE SHEETS |
|
(Unaudited) |
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Dollars in thousands |
June 30, 2018 |
December 31, 2017 |
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Assets |
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Cash and Cash Equivalents |
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Cash and due from banks |
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Non-interest bearing |
$ | 13,772 | $ | 18,233 | ||||
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Interest bearing |
1,214 | 34,777 | ||||||
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Total cash and cash equivalents |
14,986 | 53,010 | ||||||
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Interest Bearing Time Deposits in Other Banks |
12,196 | 15,196 | ||||||
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Securities - Held to Maturity |
33,148 | 37,163 | ||||||
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Securities - Available for Sale |
416,312 | 442,816 | ||||||
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Federal Home Loan Bank stock - at cost |
4,148 | 4,148 | ||||||
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Loans held for sale |
334 | 346 | ||||||
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Loans |
740,786 | 694,979 | ||||||
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Allowance for Loan Losses |
(7,958 | ) | (7,666 | ) | ||||
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Loans - Net |
732,828 | 687,313 | ||||||
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Accrued interest receivable and other assets |
21,773 | 20,463 | ||||||
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Other Real Estate Owned |
394 | 1,412 | ||||||
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Bank Owned Life Insurance |
58,855 | 58,153 | ||||||
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Premises and Equipment - Net |
26,911 | 27,400 | ||||||
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Total assets |
$ | 1,321,885 | $ | 1,347,420 | ||||
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Liabilities |
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Deposits: |
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Non-interest bearing |
$ | 292,534 | $ | 299,838 | ||||
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Interest-bearing |
854,960 | 898,326 | ||||||
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Total deposits |
1,147,494 | 1,198,164 | ||||||
|
Federal Home Loan Bank advances |
30,000 | - | ||||||
|
Federal funds purchased |
7,800 | - | ||||||
|
Accrued interest payable and other liabilities |
16,237 | 16,598 | ||||||
|
Total liabilities |
1,201,531 | 1,214,762 | ||||||
|
Shareholders' Equity |
||||||||
|
Common stock (no par value) |
23,231 | 22,840 | ||||||
|
Retained Earnings |
109,668 | 117,524 | ||||||
|
Unearned Compensation |
(39 | ) | - | |||||
|
Accumulated other comprehensive loss |
(12,506 | ) | (7,706 | ) | ||||
|
Total shareholders' equity |
120,354 | 132,658 | ||||||
|
Total liabilities and shareholders' equity |
$ | 1,321,885 | $ | 1,347,420 | ||||