MBT Financial Raises Dividend by 33%
Loans, Interest Income Fuels Growth
New York, NY — MBT Financial Corp. (NASDAQ:MBTF), the parent company of Monroe Bank & Trust, said it will pay a dividend of $0.04 per share, representing a 33.3% jump when compared to the dividend paid in the second quarter of 2016. The company did not pay a dividend in the same period last year.
The company also reported a preliminary net profit of $4.2 million, or $0.18 per share diluted, in the second quarter, compared to a profit of $2.3 million, or $0.10 per share diluted, in the second quarter of 2015. (Source: “MBT Financial Corp. Announces Second Quarter 2016 Profit and Dividend Increase,” Yahoo! Finance, July 29, 2016.)
“Exclusive of the impact of the securities gains and negative provision, we are pleased with our results this quarter, especially the loan growth and improvements in net interest income and non-interest expenses,” Douglas Chaffin, president and CEO, said in the statement. (Source: Ibid.)
“After resuming quarterly dividends earlier this year, we think it is appropriate to increase the dividend based on these results. As the economic recovery slowly continues, we plan to continue to improve profitability by growing our loan portfolio and improving our operational efficiency. We will also continue to actively manage our capital, retaining sufficient resources to fund growth, whether it is within our existing branch network or through strategic acquisition opportunities,” Chaffin added. (Source: Ibid.)
The net interest margin decreased from 3.12% in the second quarter of 2015 to 3.10% in the second quarter of 2016, however the average amount of interest earning assets increased $35.3 million. As a result, the net interest income increased $163,000, or 1.8% in the second quarter of 2016 compared to the second quarter of 2015.
MBT Financial Corp. is a bank holding company. The company operates through its wholly owned subsidiary Monroe Bank & Trust. Monroe Bank & Trust’s service areas consist of Monroe Wayne and Lenawee counties in Southern Michigan. Monroe Bank & Trust operates 17 banking offices and a mortgage loan office in Monroe County Michigan. The bank also operates seven banking offices in Wayne County Michigan.
MBT Financial shares rose one percent, trading at $8.75. They are up more than two percent so far this year.