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[Professor H]

I see something is going on for Monroe Bank and Trust Stocks -   .86/share in January - now spiking at over 3.00/share.   

Sold mine a long time ago on the way down...   but I still look at the local companies.


etrade chart for MBTF

Press release from April 26

MBT Financial Corp. Announces First Quarter 2012 ProfitFont size: A | A | A
5:00 PM ET 4/26/12 | GlobeNewswire
MBT Financial Corp., (Nasdaq:MBTF), the parent company of Monroe Bank & Trust, reported a net profit of $1,217,000, or $0.07 per share (basic and diluted), in the first quarter of 2012, compared to the loss of $4,042,000, or $0.23 per share in the first quarter of 2011.

The net interest margin increased from 3.11% in the first quarter of 2011 to 3.18% in the first quarter of 2012. The decrease in non accrual loans, from $65.6 million a year ago to $45.4 million, contributed to the increase in the net interest margin, as well as a 44 basis point decline in the cost of interest bearing liabilities. Although average earning assets decreased $17.6 million, the increase in the net interest margin resulted in an increase of $159,000, or 1.8% in the net interest income.

The provision for loan losses decreased from $5.8 million last year to $2.3 million in the first quarter of 2012 due to a decrease in the net charge offs from $3.5 million to $2.6 million, and due to a reduction in the allowance for loan losses to reflect an improvement in loan quality and a decrease in the size of the loan portfolio.

Non interest income, excluding securities gains, was unchanged from a year ago at $3.6 million. Securities gains increased from $67,000 in the first quarter of 2011 to $1.1 million. The Bank sold several federal agency securities to rebalance its portfolio as part of its interest rate risk management strategy. The gains produced by the sales helped improve the Bank's regulatory capital ratios.

Total non interest expenses decreased $712,000, or 6.6% compared to the first quarter of 2011. The decline in expenses was mainly due to a decrease in the losses on sales and write downs of Other Real Estate Owned (OREO) as well as declines in legal expenses and the premiums paid for FDIC deposit insurance. Real estate values have stabilized in the Bank's market area, reducing the need to write down the carrying values of foreclosed properties held for sale.

Total assets of the company increased $12.4 million compared to December 31, 2011, mainly due to the normal seasonal growth in deposits. Compared to a year ago, total assets decreased $19.2 million, or 1.5%, due to the decrease in non deposit funding. Capital increased $188,000 since the beginning of the year, but with the increase in assets, the ratio of equity to assets decreased from 6.12% at December 31, 2011 to 6.07% at March 31, 2012. The unrealized gains or losses on securities are not included in regulatory capital ratios, and our Tier 1 Leverage ratio, which is one of the primary ratios used by banking regulators, increased from 6.03% as of December 31, 2011 to 6.08% as of March 31, 2012. The Bank remains adequately capitalized as measured by applicable regulatory standards. The company's liquidity position remained very strong, with cash and investments increasing from 37.7% of assets at the end of 2011 to 39.5% at March 31, 2012.

Economic conditions in southeast Michigan continue to slowly improve, and this is having a positive impact on our asset quality. Non accrual loans decreased $20.2 million, or 30.7% compared to a year ago and are now at their lowest level since the third quarter of 2008. We are continuing to see an improvement in real estate sales activity and prices, and that has helped us reduce the amount of Other Real Estate Owned. Our total OREO decreased $8.4 million, or 36.9% compared to a year ago. On April 19, 2012, we held one of our most successful OREO auctions ever, accepting bids on 20 properties that were carried at $1.2 million on our books as of March 31, 2012. In accordance with accounting rules, the March results include the expense to write down the values of properties where we accepted bids below the carrying value. The reduction in the OREO total from the sales, and any gains on sales, will be recognized in the second quarter when the sales transactions close. Total problem assets, which include non performing assets and problem loans that are still performing, decreased to $129.1 million at March 31, 2012, which is an improvement of 5.6% in the first quarter and 19.1% compared to a year ago. This marks the fourth consecutive quarterly decrease in problem assets.

In 2011, the IRS began an examination of the Company's federal income tax return for the year ended December 31, 2009. Based on preliminary IRS reports, an estimated liability of $500,000 was recorded at December 31, 2011 related to the 2009 examination. This amount was included in other liabilities and federal income tax expense. The examination is still in process, and the final outcome is not known at this time. Based on current knowledge the Company recorded an additional tax expense of $126,000 in the first quarter to increase its accrued liability. The Company believes the accrued liability is adequate to absorb the effect, if any, relating to the ultimate resolution of the uncertain tax position challenged by the IRS. The estimate recorded may be adjusted prior to the filing of our quarterly report on Form 10-Q if additional information becomes known.

H. Douglas Chaffin, President and CEO, commented, "We are pleased to report a third consecutive profit this quarter, especially since the profitability is the direct result of the continued improvement in our asset quality. As the economic conditions continue to slowly improve, we will continue to see improvements in our asset quality and earnings. Loan demand is beginning to improve, and this will help our net interest margin and net interest income improve also. We continue to have a solid deposit base, a very liquid balance sheet, and adequate capital, so we are well positioned for increased lending activity."

Mr. Chaffin concluded, "Local economic indicators continued to improve this quarter, and we remain optimistic. Improvements in employment are reflected in improvements in past dues. We will continue to focus our efforts on improving asset quality, maintaining liquidity, seeking new sources of revenue and capital, and controlling expenses. Our current environment is still challenging, but 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 first quarter results on Friday, April 27, 2012, 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.mbandt.com. The call can also be accessed in the United States by calling toll free (877) 317-6789. The toll free number for callers in Canada is (866) 605-3852 and international callers can access the call at (412) 317-6789. The event 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 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. MBT is a full-service bank, offering a complete range of business and personal accounts, credit options, and phone and online banking services. MBT's Wealth Management Group is one of the largest and most respected in Southeastern Michigan. With 24 offices, 40 ATMs, and a comprehensive array of products and services, MBT prides itself in offering an incomparable banking experience for its customers. Visit MBT's web site at www.mbandt.com.


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