MBT Financial Corp. : MBTF-US: Dividend Analysis : May 11th, 2017 (record date) : By the numbers : May 9, 2017

Our analysis is based on comparing MBT Financial Corp. with the following peers – Macatawa Bank Corporation, Mackinac Financial Corporation, Mercantile Bank Corporation, Chemical Financial Corporation, Independent Bank Corporation, University Bancorp, Inc. and Huntington Bancshares Incorporated (MCBC-US, MFNC-US, MBWM-US, CHFC-US, IBCP-US, UNIB-US and HBAN-US).

MBT Financial Corp.’s dividend yield is 7.61 percent and its dividend payout is 25 percent. This compares to a peer median dividend yield of 2.30 percent and a payout level of 35.98 percent. This relatively higher dividend yield and lower payout ratio makes the company a good candidate for dividend investors looking at this peer group. The downside is the company’s relatively low dividend quality score of 33 out of a possible score of 100.

Dividend Yield
Dividend Quality Score

Dividend Quality Overview

  • Over the last twelve months (prior to March 31, 2017), MBTF-US paid a low quality dividend, which represents a yield of 1.42% at the current price.
  • Only one dividend was paid over the last five years — it was also of low quality.
  • The ending cash balance, with a dividend coverage of 2.24x, provides a moderate cushion in case of a significant reduction of cash flows in the future.
Dividend Quality Score Vs Dividend Yield

Quadrant label definitions. Hover to know more

High Score;High Yield, High Score;Low Yield, Low Score;Low Yield, Low Score;High Yield

Dividend Coverage

Over the last twelve months (prior to March 31, 2017), MBTF-US paid a low quality dividend.

The source of the company’s cash to support the dividend paid over the last twelve months is operating cash flow (coverage of 1.15x), investing cash flow (coverage of -3.19x), issuance cash flow (coverage of 1.22x) and twelve-month prior cash (coverage of 7.07x), for a total dividend coverage of 3.78x.

MBTF-US‘s issuance cash flow includes outflows from net debt repayment (coverage of -1.02x) and net share buybacks (coverage of -0.08x). Thus, the total coverage including share buybacks is 3.32x, which reflects our assumption that the cash paid for share buybacks is discretionary and could instead be used to pay dividends.

Dividend Coverage by Cash Flow (TTM)

These coverage ratio factors imply that the firm had to dip into the beginning cash balance to pay the dividend, which suggests a low dividend quality.

Dividend History

Item 2012-12-31 2013-12-31 2014-12-31 2015-12-31 2016-12-31 Latest
Dividend Yield (%) 0 0 0 0 5.66 7.61
Dividend Payout (%) 0 0 0 0 22.22 25

A complete list of metrics and analysis is available on the company page.

Company Profile

MBT Financial Corp. is a bank holding company, which operates through its subsidiary Monroe Bank & Trust. It offers various deposit products which include checking and savings accounts, time deposits, safe deposit facilities, commercial loans, personal loans, real estate mortgage loans, installment loans, IRAs, ATM and night depository facilities, treasury management services, telephone and internet banking, personal trust, employee benefit and investment management services. The company was founded in January 2000 and is headquartered in Monroe, MI.


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