MBT posts $21.3M 3Q profit
10/30/2013MONROE — MBT Financial Corp., the parent firm of Monroe Bank & Trust, on Tuesday reported a third-quarter profit of $21.3 million, or $1.17 per share, a 1,433 percent increase over the same quarter a year ago when the company had a profit of $1.4 million, or 8 cents a share.
MBT attributed the sizable increase to a one-time tax accounting issue. In 2010, the company had established a valuation allowance against its deferred tax asset because of operating losses and uncertainty about its future and its ability to utilize its tax loss going forward. But last year MBT achieved six consecutive profitable quarters and chose to cut its tax valuation allowance by $5 million.
MBT’s profit before taxes was $2.5 million, but with the tax benefit its profit was pushed up to $21.3 million. The company released its earnings after the close of Nasdaq on Tuesday but in pre-earnings trading its stock rose 10 cents, or 2.6 percent, to close at $3.95 a share.