þ
|
Quarterly report pursuant to
Section 13 or 15(d) of the Securities Exchange Act of 1934
|
For the quarterly period ended September 30, 2009 |
o
|
Transition
report pursuant to Section 13 or 15(d) of the Securities Exchange Act of
1934
|
Michigan
|
38-3516922
|
|
(State
or other jurisdiction of
incorporation
or organization)
|
(I.R.S.
Employer
Identification
No.)
|
|
Large accelerated filer o
|
Accelerated
Filer þ
|
Non-accelerated filer o
|
Smaller
reporting company o
|
September
30, 2009
|
||||||||
Dollars
in thousands
|
(Unaudited)
|
December
31, 2008
|
||||||
ASSETS
|
||||||||
Cash
and Cash Equivalents
|
||||||||
Cash
and due from banks
|
||||||||
Non-interest
bearing
|
$ | 14,500 | $ | 24,463 | ||||
Interest
bearing
|
56,731 | 26,323 | ||||||
Total
cash and cash equivalents
|
71,231 | 50,786 | ||||||
Securities
- Held to Maturity
|
34,655 | 46,840 | ||||||
Securities
- Available for Sale
|
331,945 | 406,117 | ||||||
Federal
Home Loan Bank stock - at cost
|
13,086 | 13,086 | ||||||
Loans
held for sale
|
418 | 784 | ||||||
Loans
- Net
|
860,522 | 922,420 | ||||||
Accrued
interest receivable and other assets
|
49,830 | 43,973 | ||||||
Bank
Owned Life Insurance
|
47,961 | 45,488 | ||||||
Premises
and Equipment - Net
|
32,864 | 32,907 | ||||||
Total
assets
|
$ | 1,442,512 | $ | 1,562,401 | ||||
LIABILITIES
|
||||||||
Deposits:
|
||||||||
Non-interest
bearing
|
$ | 121,746 | $ | 144,585 | ||||
Interest-bearing
|
925,903 | 991,493 | ||||||
Total
deposits
|
1,047,649 | 1,136,078 | ||||||
Federal
Home Loan Bank advances
|
243,500 | 261,500 | ||||||
Repurchase
agreements
|
30,000 | 30,000 | ||||||
Interest
payable and other liabilities
|
11,766 | 13,846 | ||||||
Total
liabilities
|
1,332,915 | 1,441,424 | ||||||
STOCKHOLDERS'
EQUITY
|
||||||||
Common
stock (no par value; 30,000,000 shares authorized, 16,198,785 and
16,148,482 shares issued and outstanding)
|
554 | 321 | ||||||
Retained
Earnings
|
113,508 | 122,896 | ||||||
Accumulated
other comprehensive loss
|
(4,465 | ) | (2,240 | ) | ||||
Total
stockholders' equity
|
109,597 | 120,977 | ||||||
Total
liabilities and stockholders' equity
|
$ | 1,442,512 | $ | 1,562,401 |
Three
Months Ended September 30,
|
Nine
Months Ended September 30,
|
|||||||||||||||
Dollars
in thousands, except per share data
|
2009
|
2008
|
2009
|
2008
|
||||||||||||
Interest
Income
|
||||||||||||||||
Interest
and fees on loans
|
$ | 13,229 | $ | 15,689 | $ | 39,994 | $ | 47,888 | ||||||||
Interest
on investment securities-
|
||||||||||||||||
Tax-exempt
|
837 | 844 | 2,579 | 2,477 | ||||||||||||
Taxable
|
3,544 | 4,558 | 11,872 | 14,312 | ||||||||||||
Interest
on balances due from banks
|
30 | - | 57 | - | ||||||||||||
Interest
on federal funds sold
|
- | 22 | - | 23 | ||||||||||||
Total
interest income
|
17,640 | 21,113 | 54,502 | 64,700 | ||||||||||||
Interest
Expense
|
||||||||||||||||
Interest
on deposits
|
4,174 | 6,263 | 14,280 | 20,122 | ||||||||||||
Interest
on borrowed funds
|
2,950 | 3,764 | 9,308 | 11,912 | ||||||||||||
Total
interest expense
|
7,124 | 10,027 | 23,588 | 32,034 | ||||||||||||
Net
Interest Income
|
10,516 | 11,086 | 30,914 | 32,666 | ||||||||||||
Provision
For Loan Losses
|
6,800 | 4,100 | 19,000 | 8,000 | ||||||||||||
Net
Interest Income After
|
||||||||||||||||
Provision
For Loan Losses
|
3,716 | 6,986 | 11,914 | 24,666 | ||||||||||||
Other
Income
|
||||||||||||||||
Income
from wealth management services
|
936 | 1,087 | 2,756 | 3,333 | ||||||||||||
Service
charges and other fees
|
1,516 | 1,683 | 4,304 | 4,795 | ||||||||||||
Net
gain on sales of securities
|
4,365 | 323 | 5,021 | 371 | ||||||||||||
Other
Than Temporary Impairments on securities
|
(2,693 | ) | - | (9,093 | ) | - | ||||||||||
Portion
of OTTI loss recognized in other comprehensive income (before
taxes)
|
(1,859 | ) | - | 3,772 | - | |||||||||||
Origination
fees on mortgage loans sold
|
119 | 73 | 350 | 357 | ||||||||||||
Bank
owned life insurance income
|
369 | 355 | 1,034 | 985 | ||||||||||||
Other
|
806 | 744 | 2,376 | 2,244 | ||||||||||||
Total
other income
|
3,559 | 4,265 | 10,520 | 12,085 | ||||||||||||
Other
Expenses
|
||||||||||||||||
Salaries
and employee benefits
|
5,122 | 5,090 | 15,956 | 16,113 | ||||||||||||
Occupancy
expense
|
804 | 801 | 2,445 | 2,712 | ||||||||||||
Equipment
expense
|
729 | 804 | 2,348 | 2,480 | ||||||||||||
Marketing
expense
|
277 | 297 | 798 | 894 | ||||||||||||
Professional
fees
|
419 | 401 | 1,286 | 1,325 | ||||||||||||
Collection
expenses
|
121 | 87 | 685 | 514 | ||||||||||||
Net
loss on other real estate owned
|
1,927 | 2,215 | 7,957 | 2,604 | ||||||||||||
Other
real estate owned expenses
|
399 | 438 | 1,165 | 1,026 | ||||||||||||
FDIC
Deposit Insurance Assessment
|
628 | 226 | 2,314 | 394 | ||||||||||||
Other
|
964 | 1,006 | 3,022 | 3,164 | ||||||||||||
Total
other expenses
|
11,390 | 11,365 | 37,976 | 31,226 | ||||||||||||
Income
(Loss) Before Income Taxes
|
(4,115 | ) | (114 | ) | (15,542 | ) | 5,525 | |||||||||
Income
Tax Expense (Benefit)
|
(1,790 | ) | (438 | ) | (6,477 | ) | 836 | |||||||||
Net
Income (Loss)
|
$ | (2,325 | ) | $ | 324 | $ | (9,065 | ) | $ | 4,689 | ||||||
Basic
Earnings (Loss) Per Common Share
|
$ | (0.14 | ) | $ | 0.02 | $ | (0.56 | ) | $ | 0.29 | ||||||
Diluted
Earnings (Loss) Per Common Share
|
$ | (0.14 | ) | $ | 0.02 | $ | (0.56 | ) | $ | 0.29 | ||||||
Common
Stock Dividends Declared Per Share
|
$ | - | $ | 0.09 | $ | 0.02 | $ | 0.45 |
Accumulated
|
||||||||||||||||
Other
|
||||||||||||||||
Common
|
Retained
|
Comprehensive
|
||||||||||||||
Dollars
in thousands
|
Stock
|
Earnings
|
Income
(Loss)
|
Total
|
||||||||||||
Balance
- January 1, 2009
|
$ | 321 | $ | 122,896 | $ | (2,240 | ) | $ | 120,977 | |||||||
Issuance
of Common Stock (50,303 shares)
|
||||||||||||||||
Restricted
stock awards (15,000 shares)
|
45 | - | - | 45 | ||||||||||||
Other
stock issued (35,303 shares)
|
82 | - | - | 82 | ||||||||||||
Equity
Compensation
|
106 | - | - | 106 | ||||||||||||
Dividends
declared ($0.02 per share)
|
- | (323 | ) | - | (323 | ) | ||||||||||
Comprehensive
income (loss):
|
||||||||||||||||
Net
income (loss)
|
- | (9,065 | ) | - | (9,065 | ) | ||||||||||
Change
in net unrealized loss on securities available for sale - Net of tax
effect of $1,205
|
|
- | - | (2,237 | ) | (2,237 | ) | |||||||||
Reclassification
adjustment for losses included in net income - Net of tax effect of
$105
|
- | - | (195 | ) | (195 | ) | ||||||||||
Change
in postretirement benefit obligation Net of tax effect of
$(111)
|
- | - | 207 | 207 | ||||||||||||
Total
Comprehensive Income (Loss)
|
(11,290 | ) | ||||||||||||||
Balance
- September 30, 2009
|
$ | 554 | $ | 113,508 | $ | (4,465 | ) | $ | 109,597 |
Nine
Months Ended September 30,
|
||||||||
Dollars
in thousands
|
2009
|
2008
|
||||||
Cash
Flows from Operating Activities
|
||||||||
Net
Income (Loss)
|
$ | (9,065 | ) | $ | 4,689 | |||
Adjustments
to reconcile net income (loss) to net cash from operating
activities
|
||||||||
Provision
for loan losses
|
19,000 | 8,000 | ||||||
Depreciation
|
1,691 | 2,003 | ||||||
(Increase)
decrease in net deferred Federal income tax asset
|
(4,099 | ) | (743 | ) | ||||
Net
(accretion) amortization of investment premium and
discount
|
209 | (25 | ) | |||||
Writedowns
of Other Real Estate Owned
|
6,116 | 2,449 | ||||||
Net
increase (decrease) in interest payable and other
liabilities
|
(1,762 | ) | (768 | ) | ||||
Net
increase in interest receivable and other assets
|
(10,742 | ) | (5,398 | ) | ||||
Equity
based compensation expense
|
106 | 175 | ||||||
Net
gain on sale/settlement of securities
|
(5,966 | ) | (371 | ) | ||||
Other
Than Temporary Impairment of investment securities
|
5,321 | - | ||||||
Writedowns
of Investments securities
|
945 | - | ||||||
Increase
in cash surrender value of life insurance
|
(1,034 | ) | (985 | ) | ||||
Net
cash provided by operating activities
|
$ | 720 | $ | 9,026 | ||||
Cash
Flows from Investing Activities
|
||||||||
Proceeds
from maturities and redemptions of investment securities held to
maturity
|
$ | 29,010 | $ | 8,673 | ||||
Proceeds
from maturities and redemptions of investment securities available for
sale
|
114,718 | 182,320 | ||||||
Proceeds
from sales of investment securities available for sale
|
201,639 | 23,943 | ||||||
Net
decrease in loans
|
43,264 | 11,407 | ||||||
Proceeds
from sales of other real estate owned
|
5,103 | 2,225 | ||||||
Proceeds
from sales of other assets
|
217 | 187 | ||||||
Purchase
of investment securities held to maturity
|
(16,817 | ) | (2,185 | ) | ||||
Purchase
of Bank Owned Life Insurance
|
(1,439 | ) | (1,589 | ) | ||||
Purchase
of investment securities available for sale
|
(246,123 | ) | (178,518 | ) | ||||
Purchase
of bank premises and equipment
|
(1,768 | ) | (1,079 | ) | ||||
Net
cash provided by investing activities
|
$ | 127,804 | $ | 45,384 | ||||
Cash
Flows from Financing Activities
|
||||||||
Net
decrease in deposits
|
$ | (88,429 | ) | $ | (29,786 | ) | ||
Net
increase in short term borrowings
|
- | (13,300 | ) | |||||
Net
decrease in securities sold under agreements to repurchase
|
- | (5,000 | ) | |||||
Repayment
of Federal Home Loan Bank borrowings
|
(18,000 | ) | - | |||||
Proceeds
from Federal Home Loan Bank borrowings
|
- | 5,000 | ||||||
Proceeds
from issuance of common stock
|
127 | 99 | ||||||
Dividends
paid
|
(1,777 | ) | (8,709 | ) | ||||
Net
cash used for financing activities
|
$ | (108,079 | ) | $ | (51,696 | ) | ||
Net
Increase In Cash and Cash Equivalents
|
$ | 20,445 | $ | 2,714 | ||||
Cash
and Cash Equivalents at Beginning Of Period
|
50,786 | 25,113 | ||||||
Cash
And Cash Equivalents At End Of Period
|
$ | 71,231 | $ | 27,827 |
2009
|
2008
|
||||||||
Basic
|
|||||||||
Net
income (loss)
|
$ | (2,325,000 | ) | $ | 324,000 | ||||
Less
preferred dividends
|
- | - | |||||||
Net
income (loss) applicable to common stock
|
$ | (2,325,000 | ) | $ | 324,000 | ||||
Average
common shares outstanding
|
16,192,914 | 16,136,402 | |||||||
Earnings
(loss) per common share - basic
|
$ | (0.14 | ) | $ | 0.02 | ||||
2009
|
2008
|
||||||||
Diluted
|
|||||||||
Net
income (loss)
|
$ | (2,325,000 | ) | $ | 324,000 | ||||
Less
preferred dividends
|
- | - | |||||||
Net
income (loss) applicable to common stock
|
$ | (2,325,000 | ) | $ | 324,000 | ||||
Average
common shares outstanding
|
16,192,914 | 16,136,402 | |||||||
Stock
option adjustment
|
- | 27,461 | |||||||
Average
common shares outstanding - diluted
|
16,192,914 | 16,163,863 | |||||||
Earnings
(loss) per common share - diluted
|
$ | (0.14 | ) | $ | 0.02 |
2009
|
2008
|
||||||||
Basic
|
|||||||||
Net
income (loss)
|
$ | (9,065,000 | ) | $ | 4,689,000 | ||||
Less
preferred dividends
|
- | - | |||||||
Net
income (loss) applicable to common stock
|
$ | (9,065,000 | ) | $ | 4,689,000 | ||||
Average
common shares outstanding
|
16,180,527 | 16,131,436 | |||||||
Earnings
(loss) per common share - basic
|
$ | (0.56 | ) | $ | 0.29 | ||||
2009
|
2008
|
||||||||
Diluted
|
|||||||||
Net
income (loss)
|
$ | (9,065,000 | ) | $ | 4,689,000 | ||||
Less
preferred dividends
|
- | - | |||||||
Net
income (loss) applicable to common stock
|
$ | (9,065,000 | ) | $ | 4,689,000 | ||||
Average
common shares outstanding
|
16,180,527 | 16,131,436 | |||||||
Stock
option adjustment
|
- | 27,461 | |||||||
Average
common shares outstanding - diluted
|
16,180,527 | 16,158,897 | |||||||
Earnings
(loss) per common share - diluted
|
$ | (0.56 | ) | $ | 0.29 |
Weighted Average
|
||||||||
Shares
|
Exercise Price
|
|||||||
Options
Outstanding, January 1, 2009
|
541,976 | $ | 17.42 | |||||
Granted
|
- | - | ||||||
Exercised
|
- | - | ||||||
Forfeited
|
1,000 | 15.33 | ||||||
Options
Outstanding, September 30, 2009
|
540,976 | $ | 17.43 | |||||
Options
Exercisable, September 30, 2009
|
512,646 | $ | 17.54 |
Three
Year Cumulative Fully Diluted EPS for the
Performance
Period Ending December 31, 2011
|
Percent
PSUs
Vested
|
|||
$0.15
|
100 | % | ||
$0.10
|
75 | % | ||
$0.05
|
50 | % |
Weighted Average
|
||||||||
Shares
|
Exercise Price
|
|||||||
SOSARs
Outstanding, January 1, 2009
|
99,500 | $ | 8.53 | |||||
Granted
|
141,500 | 3.03 | ||||||
Exercised
|
- | - | ||||||
Forfeited
|
10,500 | 5.39 | ||||||
SOSARs
Outstanding, September 30, 2009
|
230,500 | $ | 5.30 | |||||
SOSARs
Exercisable, September 30, 2009
|
34,345 | $ | 8.53 |
September
30,
|
December
31,
|
|||||||
2009
|
2008
|
|||||||
Residential
real estate loans
|
$ | 392,515 | $ | 439,133 | ||||
Non-farm,
non-residential real estate loans
|
352,912 | 352,935 | ||||||
Loans
to finance agricultural production and
|
||||||||
other
loans to farmers
|
9,277 | 9,763 | ||||||
Commercial
and industrial loans
|
100,852 | 109,495 | ||||||
Loans
to individuals for household, family,
|
||||||||
and
other personal expenditures
|
23,812 | 29,901 | ||||||
All
other loans (including overdrafts)
|
530 | 384 | ||||||
Total
loans, gross
|
879,898 | 941,611 | ||||||
Less:
Deferred loan fees
|
803 | 663 | ||||||
Total
loans, net of deferred loan fees
|
879,095 | 940,948 | ||||||
Less:
Allowance for loan losses
|
18,573 | 18,528 | ||||||
$ | 860,522 | $ | 922,420 |
September
30,
|
December
31,
|
|||||||
2009
|
2008
|
|||||||
Nonaccrual
loans
|
$ | 62,038 | $ | 47,872 | ||||
Loans
90 days past due
|
192 | 93 | ||||||
Restructured
loans
|
14,359 | 5,811 | ||||||
Total
nonperforming loans
|
$ | 76,589 | $ | 53,776 | ||||
Other
real estate owned
|
19,416 | 17,156 | ||||||
Other
assets
|
1,321 | 2,055 | ||||||
Total
nonperforming assets
|
$ | 97,326 | $ | 72,987 | ||||
Nonperforming
assets to total assets
|
6.75 | % | 4.67 | % | ||||
Allowance
for loan losses to nonperforming loans
|
24.25 | % | 34.45 | % |
September
30, 2009
|
September
30, 2008
|
|||||||
Balance
beginning of quarter
|
$ | 23,875 | $ | 18,093 | ||||
Provision
for loan losses
|
6,800 | 4,100 | ||||||
Loans
charged off
|
(12,364 | ) | (3,954 | ) | ||||
Recoveries
|
262 | 169 | ||||||
Balance
end of period
|
$ | 18,573 | $ | 18,408 |
September
30, 2009
|
September
30, 2008
|
|||||||
Balance
beginning of year
|
$ | 18,528 | $ | 20,222 | ||||
Provision
for loan losses
|
19,000 | 8,000 | ||||||
Loans
charged off
|
(20,273 | ) | (10,516 | ) | ||||
Recoveries
|
1,318 | 702 | ||||||
Balance
end of period
|
$ | 18,573 | $ | 18,408 |
Held
to Maturity
|
||||||||||||||||
September
30, 2009
|
||||||||||||||||
Gross
|
Gross
|
Estimated
|
||||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Market
|
|||||||||||||
Cost
|
Gains
|
Losses
|
Value
|
|||||||||||||
Obligations
of U.S. Government Agencies
|
$ | 6 | $ | 1 | $ | - | $ | 7 | ||||||||
Obligations
of States and Political Subdivisions
|
34,649 | 361 | (123 | ) | 34,887 | |||||||||||
$ | 34,655 | $ | 362 | $ | (123 | ) | $ | 34,894 |
Available
for Sale
|
||||||||||||||||
September
30, 2009
|
||||||||||||||||
Gross
|
Gross
|
Estimated
|
||||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Market
|
|||||||||||||
Cost
|
Gains
|
Losses
|
Value
|
|||||||||||||
Obligations
of U.S. Government Agencies
|
$ | 260,193 | $ | 3,899 | $ | (187 | ) | $ | 263,905 | |||||||
Obligations
of States and Political Subdivisions
|
44,986 | 1,663 | (51 | ) | 46,598 | |||||||||||
Trust
Preferred CDO Securities
|
19,924 | - | (7,831 | ) | 12,093 | |||||||||||
Corporate
Debt Securities
|
8,367 | - | (1,404 | ) | 6,963 | |||||||||||
Other
Securities
|
2,553 | 103 | (270 | ) | 2,386 | |||||||||||
$ | 336,023 | $ | 5,665 | $ | (9,743 | ) | $ | 331,945 | ||||||||
Held
to Maturity
|
||||||||||||||||
December
31, 2008
|
||||||||||||||||
Gross
|
Gross
|
Estimated
|
||||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Market
|
|||||||||||||
Cost
|
Gains
|
Losses
|
Value
|
|||||||||||||
Obligations
of U.S. Government Agencies
|
$ | 7 | $ | - | $ | - | $ | 7 | ||||||||
Obligations
of States and Political Subdivisions
|
46,833 | 214 | (1,011 | ) | 46,036 | |||||||||||
$ | 46,840 | $ | 214 | $ | (1,011 | ) | $ | 46,043 | ||||||||
Available
for Sale
|
||||||||||||||||
December
31, 2008
|
||||||||||||||||
Gross
|
Gross
|
Estimated
|
||||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Market
|
|||||||||||||
Cost
|
Gains
|
Losses
|
Value
|
|||||||||||||
Obligations
of U.S. Government Agencies
|
$ | 322,767 | $ | 6,915 | $ | (11 | ) | $ | 329,671 | |||||||
Obligations
of States and Political Subdivisions
|
40,999 | 541 | (426 | ) | 41,114 | |||||||||||
Trust
Preferred CDO Securities
|
25,132 | - | (5,761 | ) | 19,371 | |||||||||||
Corporate
Debt Securities
|
15,170 | - | (1,654 | ) | 13,516 | |||||||||||
Other
Securities
|
2,386 | 59 | - | 2,445 | ||||||||||||
$ | 406,454 | $ | 7,515 | $ | (7,852 | ) | $ | 406,117 |
Less
than 12 months
|
12
months or longer
|
Total
|
||||||||||||||||||||||
Aggregate
Fair Value
|
Gross
Unrealized
Losses
|
Aggregate
Fair Value
|
Gross
Unrealized
Losses
|
Aggregate
Fair Value
|
Gross
Unrealized
Losses
|
|||||||||||||||||||
Obligations
of United States Government Agencies
|
$ | 39,881 | $ | 187 | $ | - | $ | - | $ | 39,881 | $ | 187 | ||||||||||||
Obligations
of States and Political Subdivisions
|
307 | 3 | 5,828 | 171 | 6,135 | 174 | ||||||||||||||||||
Trust
Preferred CDO Securities
|
- | - | 3,681 | 4,059 | 3,681 | 4,059 | ||||||||||||||||||
Corporate
Debt Securities
|
- | - | 6,963 | 1,404 | 6,963 | 1,404 | ||||||||||||||||||
Equity
Securities
|
270 | 270 | - | - | 270 | 270 | ||||||||||||||||||
$ | 40,458 | $ | 460 | $ | 16,472 | $ | 5,634 | $ | 56,930 | $ | 6,094 | |||||||||||||
December
31, 2008
|
||||||||||||||||||||||||
Less
than 12 months
|
12
months or longer
|
Total
|
||||||||||||||||||||||
Aggregate
Fair Value
|
Gross
Unrealized
Losses
|
Aggregate
Fair Value
|
Gross
Unrealized
Losses
|
Aggregate
Fair Value
|
Gross
Unrealized
Losses
|
|||||||||||||||||||
Obligations
of United States Government Agencies
|
$ | 8,791 | $ | 4 | $ | 1,500 | $ | 7 | $ | 10,291 | $ | 11 | ||||||||||||
Obligations
of States and Political Subdivisions
|
20,707 | 1,211 | 3,878 | 226 | 24,585 | 1,437 | ||||||||||||||||||
Trust
Preferred CDO Securities
|
6,605 | 2,474 | 12,766 | 3,287 | 19,371 | 5,761 | ||||||||||||||||||
Corporate
Debt Securities
|
12,516 | 1,654 | - | - | 12,516 | 1,654 | ||||||||||||||||||
$ | 48,619 | $ | 5,343 | $ | 18,144 | $ | 3,520 | $ | 66,763 | $ | 8,863 |
September 30, 2009
|
December 31, 2008
|
|||||||||||||||
Carrying
|
Estimated
|
Carrying
|
Estimated
|
|||||||||||||
Value
|
Fair
Value
|
Value
|
Fair
Value
|
|||||||||||||
Financial
Assets:
|
||||||||||||||||
Cash
and due from banks
|
$ | 71,231 | $ | 71,231 | $ | 50,786 | $ | 50,786 | ||||||||
Securities
|
366,600 | 366,839 | 452,957 | 452,160 | ||||||||||||
Federal
Home Loan Bank Stock
|
13,086 | 13,086 | 13,086 | 13,086 | ||||||||||||
Loans,
net
|
860,522 | 862,055 | 922,420 | 953,267 | ||||||||||||
Financial
Liabilities:
|
||||||||||||||||
Demand,
NOW, savings and money market savings deposits
|
626,343 | 626,343 | 621,762 | 621,762 | ||||||||||||
Other
time deposits
|
421,306 | 428,965 | 514,316 | 521,272 | ||||||||||||
Borrowed
funds
|
||||||||||||||||
Variable
Rate FHLB Advances
|
110,000 | 117,705 | 123,000 | 131,491 | ||||||||||||
Fixed
Rate FHLB Advances
|
3,500 | 3,697 | 8,500 | 8,800 | ||||||||||||
Putable
FHLB Advances
|
130,000 | 136,108 | 130,000 | 138,870 | ||||||||||||
Repurchase
Agreements
|
30,000 | 35,055 | 30,000 | 33,840 |
Quoted
Prices in
Active
Markets for
Identical
Assets
(Level
1)
|
Significant
Other
Observable
Inputs
(Level
2)
|
Significant
Unobservable
Inputs
(Level 3)
|
Balance
at Sept.
30,
2009
|
|||||||||||||
Investment
Securities - Available for Sale
|
$ | 273,253 | $ | 46,598 | $ | 12,094 | $ | 331,945 |
Investment
Securities
-
Available
for Sale
|
||||
Balance
at December 31, 2008
|
$ | 19,746 | ||
Total
realized and unrealized gains (losses) included in income
|
(5,316 | ) | ||
Total
unrealized gains (losses) included in other comprehensive
income
|
(2,336 | ) | ||
Net
purchases, sales, calls and maturities
|
- | |||
Net
transfers in/out of Level 3
|
- | |||
Balance
at September 30, 2009
|
$ | 12,094 |
Balance
at
Sept.
30, 2009
|
Quoted
Prices in
Active
Markets for
Identical
Assets
(Level
1)
|
Significant
Other
Observable
Inputs
(Level
2)
|
Significant
Unobservable
Inputs
(Level 3)
|
Total
Losses for
the
three months
ended
Sept. 30,
2009
|
Total
Losses for
the
nine months
ended
Sept. 30,
2009
|
|||||||||||||||||||
Impaired
loans
|
$ | 66,550 | $ | - | $ | - | $ | 66,550 | $ | 3,799 | $ | 10,447 | ||||||||||||
Other
Real Estate Owned
|
$ | 19,416 | $ | - | $ | 19,416 | $ | - | $ | 1,927 | $ | 7,957 |
Contractual
Amount
|
||||||||
September
30,
|
December
31,
|
|||||||
|
2009
|
2008
|
||||||
Commitments
to extend credit:
|
||||||||
Unused
portion of commercial lines of credit
|
$ | 63,850 | $ | 62,537 | ||||
Unused
portion of credit card lines of credit
|
5,323 | 5,872 | ||||||
Unused
portion of home equity lines of credit
|
16,147 | 20,200 | ||||||
Standby
letters of credit and financial guarantees written
|
5,434 | 7,297 | ||||||
All
other off-balance sheet assets
|
5,336 | 3,682 |
Actual
|
Minimum
to Qualify as
Well
Capitalized
|
|||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||
As
of September 30, 2009:
|
||||||||||||||||
Total
Capital to Risk-Weighted Assets
|
||||||||||||||||
Consolidated
|
$ | 116,173 | 11.16 | % | $ | 104,069 | 10 | % | ||||||||
Monroe
Bank & Trust
|
115,209 | 11.08 | % | 103,970 | 10 | % | ||||||||||
Tier
1 Capital to Risk-Weighted Assets
|
||||||||||||||||
Consolidated
|
103,093 | 9.91 | % | 62,441 | 6 | % | ||||||||||
Monroe
Bank & Trust
|
102,094 | 9.82 | % | 62,382 | 6 | % | ||||||||||
Tier
1 Capital to Average Assets
|
||||||||||||||||
Consolidated
|
103,093 | 7.12 | % | 72,353 | 5 | % | ||||||||||
Monroe
Bank & Trust
|
102,094 | 7.06 | % | 72,306 | 5 | % |
Actual
|
Minimum
to Qualify as
Well
Capitalized
|
|||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||
As
of December 31, 2008:
|
||||||||||||||||
Total
Capital to Risk-Weighted Assets
|
||||||||||||||||
Consolidated
|
$ | 136,286 | 12.74 | % | $ | 106,980 | 10 | % | ||||||||
Monroe
Bank & Trust
|
134,853 | 12.62 | % | 106,895 | 10 | % | ||||||||||
Tier
1 Capital to Risk-Weighted Assets
|
||||||||||||||||
Consolidated
|
122,820 | 11.48 | % | 64,188 | 6 | % | ||||||||||
Monroe
Bank & Trust
|
121,398 | 11.36 | % | 64,137 | 6 | % | ||||||||||
Tier
1 Capital to Average Assets
|
||||||||||||||||
Consolidated
|
122,820 | 7.82 | % | 78,543 | 5 | % | ||||||||||
Monroe
Bank & Trust
|
121,398 | 7.73 | % | 78,495 | 5 | % |
|
3.1
|
Restated
Articles of Incorporation of MBT Financial Corp. Previously filed as
Exhibit 3.1 to MBT Financial Corp.’s Form 10-K for its fiscal year ended
December 31, 2000.
|
|
3.2
|
Amended
and Restated Bylaws of MBT Financial Corp. Previously filed as Exhibit 3.2
to MBT Financial Corp.’s Form 10-Q for its quarter ended March 31,
2008.
|
|
31.1
|
Certification
by Chief Executive Officer required by Securities and Exchange Commission
Rule 13a-14.
|
|
31.2
|
Certification
by Chief Financial Officer required by Securities and Exchange Commission
Rule 13a-14.
|
|
32.1
|
Certification
by Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as enacted
pursuant to Section 906 of the Sarbanes-Oxley Act of
2002.
|
|
32.2
|
Certification
by Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as enacted
pursuant to Section 906 of the Sarbanes-Oxley Act of
2002.
|
MBT Financial Corp.
|
|||
(Registrant)
|
|||
November 9, 2009
|
By
|
/s/ H. Douglas Chaffin
|
|
Date
|
H.
Douglas Chaffin
|
||
President
&
|
|||
Chief
Executive Officer
|
|||
November 9, 2009
|
By
|
/s/ John L. Skibski
|
|
Date
|
John
L. Skibski
|
||
Executive
Vice President and
|
|||
Chief
Financial
Officer
|
Exhibit Number
|
Description of Exhibits
|
|
31.1
|
Certification
by Chief Executive Officer required by Securities and Exchange Commission
Rule 13a-14.
|
|
31.2
|
Certification
by Chief Financial Officer required by Securities and Exchange Commission
Rule 13a-14.
|
|
32.1
|
Certification
by Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as enacted
pursuant to Section 906 of the Sarbanes-Oxley Act of
2002.
|
|
32.2
|
Certification
by Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as enacted
pursuant to Section 906 of the Sarbanes-Oxley Act of
2002.
|