MBT parent narrows loss to $372,000 for quarter

MONROE - MBT Financial Corp., parent company of Monroe Bank & Trust, reported a loss Tuesday of $372,000, or 2 cents a share, for the second quarter of 2010, a substantial improvement from the loss of $5.4 million, or 33 cents a share, from the same quarter a year ago.

The Michigan bank reported that its key revenue source, net interest income, was $9.2 million for the quarter, down $1 million, or 10 percent, from a year ago.

Total assets of the company decreased $178 million to $1.26 billion from a year ago.

Monroe County's largest bank this month accepted an order by the Federal Deposit Insurance Corp. and Michigan's Office of Financial and Insurance Regulation to increase its leverage ratio.

As part of its earnings report after the stock market closed Tuesday, the bank said it had repaid $135 million of funds borrowed from the Federal Home Loan Bank.

"Although real estate values and unemployment rates in our market have been stable for the fourth consecutive quarter, we do not anticipate significant recovery in our local markets this year," H. Douglas Chaffin, president and chief executive officer, said in a written statement.

"We will continue to focus our efforts on improving asset quality, maintaining liquidity, strengthening capital, seeking new sources of revenue, and controlling expenses.

"Our board is continuing to pursue options available to us to raise additional capital," he said.