<PAGE>

================================================================================

                UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q

(Mark One)

[X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
     ACT OF 1934

     For the quarterly period ended June 30, 2007

                                       Or

[ ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
     EXCHANGE ACT OF 1934

                       Commission File Number: 000-30973

                               MBT FINANCIAL CORP.
             (Exact name of registrant as specified in its charter)

<TABLE>
<S>                                                          <C>
            Michigan                                              38-3516922
(State or other jurisdiction of                                (I.R.S. Employer
 incorporation or organization)                              Identification No.)
</TABLE>

                               102 E. FRONT STREET
                             MONROE, MICHIGAN 48161
                    (Address of principal executive offices)
                                   (Zip Code)

                                 (734) 241-3431
              (Registrant's telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.

Yes [X]   No [ ]

Indicate by check mark whether the registrant is a large accelerated filer, an
accelerated filer, or a non-accelerated filer. See definition of "accelerated
filer" and "large accelerated filer" in Rule 12b-2 of the Exchange Act (check
one).

Large accelerated filer [ ]   Accelerated Filer [X]   Non-accelerated filer [ ]

Indicate by check mark whether the registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act).

Yes [ ]   No [X]

As of August 7, 2007, there were 16,300,970 shares of the Company's Common Stock
outstanding.

================================================================================

<PAGE>

PART I FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS

                               MBT FINANCIAL CORP.
                           CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>
                                                   JUNE 30, 2007   DECEMBER 31,
Dollars in thousands                                (UNAUDITED)        2006
--------------------                               -------------   ------------
<S>                                                <C>             <C>
ASSETS
Cash and Cash Equivalents
   Cash and due from banks                          $   26,037      $   27,903
   Federal funds sold                                    5,800              --
                                                    ----------      ----------
      Total cash and cash equivalents                   31,837          27,903

Securities - Held to Maturity                           49,734          64,938
Securities - Available for Sale                        331,940         374,087
Federal Home Loan Bank stock - at cost                  13,086          13,086
Loans held for sale                                      1,475             721
Loans - Net                                            986,693         984,513
Accrued interest receivable and other assets            25,964          27,961
Bank Owned Life Insurance                               41,845          39,631
Premises and Equipment - Net                            33,452          33,979
                                                    ----------      ----------
      Total assets                                  $1,516,026      $1,566,819
                                                    ==========      ==========
LIABILITIES
Deposits:
   Non-interest bearing                             $  145,870      $  158,688
   Interest-bearing                                    932,561         957,369
                                                    ----------      ----------
      Total deposits                                 1,078,431       1,116,057

Federal Home Loan Bank advances                        256,500         256,500
Federal funds purchased                                     --           3,500
Repurchase agreements                                   35,000          40,000
Interest payable and other liabilities                  15,039          14,700
                                                    ----------      ----------
      Total liabilities                              1,384,970       1,430,757
                                                    ----------      ----------
STOCKHOLDERS' EQUITY
Common stock (no par value)                                 --              --
Additional paid-in capital                               2,820           6,979
Retained Earnings                                      135,454         134,162
Accumulated other comprehensive loss                    (7,218)         (5,079)
                                                    ----------      ----------
      Total stockholders' equity                       131,056         136,062
                                                    ----------      ----------
      Total liabilities and stockholders' equity    $1,516,026      $1,566,819
                                                    ==========      ==========
</TABLE>

The accompanying notes to consolidated financial statements are integral part of
these statements.


                                       -2-

<PAGE>

                               MBT FINANCIAL CORP.
                  CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED

<TABLE>
<CAPTION>
                                                 THREE MONTHS
                                                ENDED JUNE 30,
                                              -----------------
Dollars in thousands, except per share data     2007      2006
-------------------------------------------   -------   -------
<S>                                           <C>       <C>
INTEREST INCOME
Interest and fees on loans                    $17,751   $17,840
Interest on investment securities-
   Tax-exempt                                     871     1,085
   Taxable                                      4,582     5,014
Interest on federal funds sold                     84         1
                                              -------   -------
      Total interest income                    23,288    23,940
                                              -------   -------
INTEREST EXPENSE
Interest on deposits                            7,981     7,266
Interest on borrowed funds                      4,520     4,752
                                              -------   -------
      Total interest expense                   12,501    12,018
                                              -------   -------
NET INTEREST INCOME                            10,787    11,922
PROVISION FOR LOAN LOSSES                         750     6,675
                                              -------   -------
NET INTEREST INCOME AFTER
   PROVISION FOR LOAN LOSSES                   10,037     5,247
                                              -------   -------
OTHER INCOME (LOSS)
Income from trust services                      1,151     1,070
Service charges and other fees                  1,574     1,566
Net gain (loss) on sales of securities             92    (4,927)
Origination fees on mortgage loans sold           210       135
Bank owned life insurance income                  334       292
Other                                             758       624
                                              -------   -------
      Total other income                        4,119    (1,240)
                                              -------   -------
OTHER EXPENSES
Salaries and employee benefits                  5,599     5,340
Occupancy expense                                 844       712
Equipment expense                                 850       747
Marketing expense                                 369       346
Professional fees                                 406       288
Net (gain) loss on other real estate owned         (8)    1,287
Other                                           1,219     1,332
                                              -------   -------
      Total other expenses                      9,279    10,052
                                              -------   -------
INCOME (LOSS) BEFORE INCOME TAXES               4,877    (6,045)
INCOME TAX EXPENSE (BENEFIT)                    1,342    (2,469)
                                              -------   -------
NET INCOME (LOSS)                             $ 3,535   $(3,576)
                                              =======   =======

BASIC EARNINGS (LOSS) PER COMMON SHARE        $  0.21   $ (0.21)
                                              =======   =======
DILUTED EARNINGS (LOSS) PER COMMON SHARE      $  0.21   $ (0.21)
                                              =======   =======
COMMON STOCK DIVIDENDS DECLARED PER SHARE     $  0.18   $  0.17
                                              =======   =======
</TABLE>

The accompanying notes to consolidated financial statements are integral part of
these statements.


                                       -3-
<PAGE>

                               MBT FINANCIAL CORP.
                  CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED

<TABLE>
<CAPTION>
                                              SIX MONTHS ENDED JUNE 30,
                                              -------------------------
Dollars in thousands, except per share data         2007      2006
-------------------------------------------       -------   -------
<S>                                           <C>           <C>
INTEREST INCOME
Interest and fees on loans                        $35,512   $35,009
Interest on investment securities-
   Tax-exempt                                       1,880     2,242
   Taxable                                          9,497    10,362
Interest on federal funds sold                        116        55
                                                  -------   -------
      Total interest income                        47,005    47,668
                                                  -------   -------
INTEREST EXPENSE
Interest on deposits                               15,936    14,763
Interest on borrowed funds                          9,099     8,815
                                                  -------   -------
      Total interest expense                       25,035    23,578
                                                  -------   -------
NET INTEREST INCOME                                21,970    24,090
PROVISION FOR LOAN LOSSES                           1,500     7,350
                                                  -------   -------
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES                          20,470    16,740
                                                  -------   -------
OTHER INCOME
Income from trust services                          2,218     2,132
Service charges and other fees                      3,099     3,030
Net gain (loss) on sales of securities                 92    (4,907)
Origination fees on mortgage loans sold               393       276
Bank Owned Life Insurance income                      630       575
Other                                               1,450     1,238
                                                  -------   -------
      Total other income                            7,882     2,344
                                                  -------   -------
OTHER EXPENSES

Salaries and employee benefits                     11,048    10,518
Occupancy expense                                   1,724     1,479
Equipment expense                                   1,695     1,545
Marketing expense                                     621       718
Professional fees                                     776       616
Net (gain) loss on other real estate                   10     1,237
Other                                               2,517     2,428
                                                  -------   -------
      Total other expenses                         18,391    18,541
                                                  -------   -------
INCOME BEFORE INCOME TAXES                          9,961       543
INCOME TAX EXPENSE (BENEFIT)                        2,723      (607)
                                                  -------   -------
NET INCOME                                        $ 7,238   $ 1,150
                                                  =======   =======
BASIC EARNINGS PER COMMON SHARE                   $  0.43   $  0.07
                                                  =======   =======
DILUTED EARNINGS PER COMMON SHARE                 $  0.43   $  0.07
                                                  =======   =======
COMMON STOCK DIVIDENDS DECLARED PER SHARE         $  0.36   $  0.34
                                                  =======   =======
</TABLE>

The accompanying notes to consolidated financial statements are integral part of
these statements.


                                      -4-

<PAGE>

                               MBT FINANCIAL CORP.
                CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED

<TABLE>
<CAPTION>
                                                                                       SIX MONTHS ENDED JUNE 30,
                                                                                       -------------------------
Dollars in thousands                                                                        2007       2006
--------------------                                                                      --------   --------
<S>                                                                                       <C>        <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income                                                                                $  7,238   $  1,150
Adjustments to reconcile net income to net cash from operating activities
   Depreciation                                                                              1,379      1,256
   Provision for loan losses                                                                 1,500      7,350
   Increase in net deferred Federal income tax asset                                          (351)    (1,842)
   Net amortization of investment premium and discount                                        (160)        55
   Net increase (decrease) in interest payable and other liabilities                           562        (32)
   Net (increase) decrease in interest receivable and other assets                           2,430     (4,582)
   Equity Compensation                                                                         340        240
   Net (gain) loss on sales of securities                                                      (92)     4,907
   Increase in cash surrender value of life insurance                                         (630)      (575)
                                                                                          --------   --------
      Net cash provided by operating activities                                           $ 12,216   $  7,927
                                                                                          --------   --------
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from maturities and redemptions of investment securities held to maturity        $ 16,595   $ 15,522
Proceeds from maturities and redemptions of investment securities available for sale         6,489      3,435
Proceeds from sales of investment securities available for sale                             47,733     52,387
Net increase in loans                                                                       (4,434)   (38,975)
Proceeds from sales of other real estate owned                                               1,104      1,976
Proceeds from sales of other assets                                                             26         44
Purchase of investment securities held to maturity                                          (1,411)    (1,574)
Purchase of bank owned life insurance                                                       (1,584)    (2,138)
Purchase of investment securities available for sale                                       (15,317)        --
Purchase of bank premises and equipment                                                       (852)    (6,731)
                                                                                          --------   --------
      Net cash provided by investing activities                                           $ 48,349   $ 23,946
                                                                                          --------   --------
CASH FLOWS FROM FINANCING ACTIVITIES
Net decrease in deposits                                                                  $(37,626)  $(68,680)
Net increase (decrease) in short term borrowings                                            (3,500)    36,822
Net increase (decrease) in securities sold under repurchase agreements                      (5,000)     5,000
Proceeds from issuance of common stock                                                          57        179
Repurchase of common stock                                                                  (4,556)    (5,651)
Dividends paid                                                                              (6,006)    (5,824)
                                                                                          --------   --------
      Net cash used for financing activities                                              $(56,631)  $(38,154)
                                                                                          --------   --------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                                      $  3,934   $ (6,281)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD                                            27,903     37,330
                                                                                          --------   --------
CASH AND CASH EQUIVALENTS AT END OF PERIOD                                                $ 31,837   $ 31,049
                                                                                          ========   ========
</TABLE>

The accompanying notes to consolidated financial statements are integral part of
these statements.


                                      -5-

<PAGE>

                               MBT FINANCIAL CORP.
     CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - UNAUDITED

<TABLE>
<CAPTION>
                                                                                  ACCUMULATED
                                                         ADDITIONAL                  OTHER
                                                           PAID-IN    RETAINED   COMPREHENSIVE
Dollars in thousands                                       CAPITAL    EARNINGS   INCOME (LOSS)     TOTAL
--------------------                                     ----------   --------   -------------   --------
<S>                                                      <C>          <C>        <C>             <C>
BALANCE - JANUARY 1, 2007                                 $ 6,979     $134,162      $(5,079)     $136,062
Repurchase of Common Stock (338,600 shares)                (4,556)          --           --        (4,556)
Issuance of Common Stock (4,242 shares)                        57           --           --            57
Equity Compensation                                           340           --           --           340
Dividends declared ($0.36 per share)                           --       (5,946)          --        (5,946)
Comprehensive income:
   Net income                                                  --        7,238           --         7,238
   Change in net unrealized loss on securities
      available for sale - Net of tax effect of $1,230         --           --       (2,284)       (2,284)
   Change in postretirement benefit obligation
      Net of tax effect of ($78)                               --           --          145           145
                                                          -------     --------      -------      --------
         Total Comprehensive Income                                                                 5,099
                                                          -------     --------      -------      --------
BALANCE - JUNE 30, 2007                                   $ 2,820     $135,454      $(7,218)     $131,056
                                                          =======     ========      =======      ========
</TABLE>

The accompanying notes to consolidated financial statements are integral part of
these statements.


                                      -6-
<PAGE>

                               MBT FINANCIAL CORP.
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

1. BASIS OF PRESENTATION AND ACCOUNTING POLICIES

The unaudited consolidated financial statements include the accounts of MBT
Financial Corp. (the "Company") and its subsidiary, Monroe Bank & Trust (the
"Bank"). The Bank includes the accounts of its wholly owned subsidiaries, MBT
Credit Company, Inc. and MB&T Financial Services, Inc. The Bank operates
twenty-one branches in Monroe County, Michigan and five branches in Wayne
County, Michigan. MBT Credit Company, Inc. operates a mortgage loan office in
Monroe County. The Bank's primary source of revenue is from providing loans to
customers, who are predominantly small and middle-market businesses and
middle-income individuals. The Company's sole business segment is community
banking.

The accounting and reporting policies of the Bank conform to practice within the
banking industry and are in accordance with accounting principles generally
accepted in the United States. Preparation of financial statements in conformity
with generally accepted accounting principles requires Management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those estimates.
Material estimates that are particularly susceptible to significant changes in
the near term are the determination of the allowance for loan losses and the
valuation of other real estate owned.

The accompanying unaudited consolidated financial statements of the Company have
been prepared in accordance with the instructions to Form 10-Q. Accordingly,
they do not include all of the information and footnotes required by generally
accepted accounting principles for complete financial statements. However, such
information reflects all adjustments (consisting of normal recurring
adjustments), which are, in the opinion of Management, necessary for fair
statement of results for the interim periods.

The significant accounting policies are as follows:

PRINCIPLES OF CONSOLIDATION

The consolidated financial statements include the accounts of the Company and
its subsidiary. All material intercompany transactions and balances have been
eliminated. Certain prior period amounts have been reclassified to conform to
the current period presentation.

COMPREHENSIVE INCOME

Accounting principles generally require that revenue, expenses, gains, and
losses be included in net income. Certain changes in assets and liabilities,
however, such as unrealized gains and losses on securities available for sale,
are reported as a separate component of the equity section of the balance sheet.
Such items, along with net income, are components of comprehensive income.

BUSINESS SEGMENTS

While the Company's chief decision makers monitor the revenue streams of various
products and services, operations are managed and financial performance is
evaluated on a company wide basis. Accordingly, all of the Company's operations
are considered by management to be aggregated in one reportable segment.

STOCK-BASED COMPENSATION

On January 1, 2006, the Company adopted SFAS 123(R), "Accounting for Stock Based
Compensation" for all share based payments to employees, including grants of
stock options and restricted stock units. The amount of compensation is measured
at the fair value of the options


                                      -7-

<PAGE>

when granted, and this cost is expensed over the required service period, which
is normally the vesting period of the options.

SFAS 123(R) applies to awards granted or modified after January 1, 2006.
Compensation cost is also recorded for prior option grants that vest after the
date of adoption. The compensation expense recorded under FAS 123(R) in the six
months ended June 30, 2007 and June 30, 2006 was $340,000 and $240,000,
respectively.

The weighted average fair value of options granted was $2.76 in 2007 and $3.61
in 2006. The fair value of each option grant is estimated on the date of the
grant using the Black-Scholes option pricing model with the following
assumptions: expected option lives of seven years for both years; expected
volatility of 20.3% in 2007 and 22.9% in 2006; and risk-free interest rates of
4.7% in 2007 and 4.5% in 2006.

ACCOUNTING PRONOUNCEMENTS

In February 2007, the Financial Accounting Standards Board "FASB" issued FAS No.
159, The Fair Value Option for Financial Assets and Financial Liabilities (FAS
159). FAS 159 is effective for fiscal years beginning after November 15, 2007.
Early adoption is permitted subject to specific requirements outlined in the new
Statement. Calendar year companies are able to adopt FAS 159 for their first
quarter 2007 financial statements.

FAS 159 allows the Company to choose, at specified election dates, to measure
eligible financial assets and financial liabilities at fair value that are not
otherwise required to be measured at fair value. If a company elects the fair
value option for an eligible item, changes to that item's fair value in
subsequent reporting periods must be recognized in current earnings. FAS 159
also establishes presentation and disclosure requirements designed to draw
comparison between entities that elect different measurement attributes for
similar assets and liabilities.

In April 2007, the Company elected early adoption of FAS 159 as of January 1,
2007. The Company did not select any financial assets or financial liabilities
for fair value measurement, but elected early adoption in order to be able to
apply the fair value option to financial assets and financial liabilities that
may be acquired prior to the effective date of the statements.

In September 2006, FASB issued FAS No. 157, Fair Value Measurements (FAS 157).
FAS 157 defines fair value, establishes a framework for measuring fair value,
and expands disclosures about the use of fair value measurements. FAS 157 is
effective for fiscal years beginning after November 15, 2007. Upon adoption of
FAS 159, the Company concurrently adopted the provisions of FAS 157, effective
January 1, 2007. Accordingly, the Company has developed a framework to measure
the fair value of financial assets and financial liabilities. Upon election to
apply fair value measurement of financial assets or financial liabilities, the
Company will expand disclosures in accordance with the requirements of FAS 157.


                                      -8-

<PAGE>

2. EARNINGS PER SHARE

The calculation of net income per common share for the three months ended June
30 is as follows:

<TABLE>
<CAPTION>
                                                      2007          2006
                                                  -----------   -----------
<S>                                               <C>           <C>
BASIC
   Net income (loss)                              $ 3,535,000   $(3,576,000)
   Less preferred dividends                                --            --
                                                  -----------   -----------
   Net income (loss) applicable to common stock   $ 3,535,000   $(3,576,000)
                                                  -----------   -----------
   Average common shares outstanding               16,558,137    16,969,365
                                                  -----------   -----------
   Earnings (loss) per common share - basic       $      0.21   $     (0.21)
                                                  ===========   ===========
</TABLE>

<TABLE>
<CAPTION>
                                                      2007          2006
                                                  -----------   -----------
<S>                                               <C>           <C>
DILUTED
   Net income (loss)                              $ 3,535,000   $(3,576,000)
   Less preferred dividends                                --            --
                                                  -----------   -----------
   Net income (loss) applicable to common stock   $ 3,535,000   $(3,576,000)
                                                  -----------   -----------
   Average common shares outstanding               16,558,137    16,969,365
   Stock option adjustment                             27,583        31,198
                                                  -----------   -----------
   Average common shares outstanding - diluted     16,585,720    17,000,563
                                                  -----------   -----------
   Earnings (loss) per common share - diluted     $      0.21   $     (0.21)
                                                  ===========   ===========
</TABLE>

The calculation of net income per common share for the six months ended June 30
is as follows:

<TABLE>
<CAPTION>
                                                     2007          2006
                                                 -----------   -----------
<S>                                              <C>           <C>
BASIC
   Net income                                    $ 7,238,000   $ 1,150,000
   Less preferred dividends                               --            --
                                                 -----------   -----------
   Net income applicable to common stock         $ 7,238,000   $ 1,150,000
                                                 -----------   -----------
   Average common shares outstanding              16,622,204    17,040,245
                                                 -----------   -----------
   Earnings per common share - basic             $      0.43   $      0.07
                                                 ===========   ===========
</TABLE>

<TABLE>
<CAPTION>
                                                     2007          2006
                                                 -----------   -----------
<S>                                              <C>           <C>
DILUTED
   Net income                                    $ 7,238,000   $ 1,150,000
   Less preferred dividends                               --            --
                                                 -----------   -----------
   Net income applicable to common stock         $ 7,238,000   $ 1,150,000
                                                 -----------   -----------
   Average common shares outstanding              16,622,204    17,040,245
   Stock option adjustment                            28,969        35,529
                                                 -----------   -----------
   Average common shares outstanding - diluted    16,651,173    17,075,774
                                                 -----------   -----------
   Earnings per common share - diluted           $      0.43   $      0.07
                                                 ===========   ===========
</TABLE>


                                      -9-

<PAGE>

3. STOCK BASED COMPENSATION

The following table summarizes the options that have been granted to
non-employee directors and certain key executives in accordance with the
Long-Term Incentive Compensation Plan that was approved by shareholders at the
Annual Meeting of Shareholders on April 6, 2000.

<TABLE>
<CAPTION>
                                                 Weighted Average
                                        Shares    Exercise Price
                                       -------   ----------------
<S>                                    <C>       <C>
Options Outstanding, January 1, 2007   510,143        $17.73
Granted                                 94,500         15.33
Exercised                                   --            --
Forfeited                                   --            --
                                       -------        ------
Options Outstanding, June 30, 2007     604,643        $17.36
                                       -------        ------
Options Exercisable, June 30, 2007     407,991        $17.32
                                       -------        ------
</TABLE>

On January 2, 2007, performance restricted stock units were awarded to certain
key executives in accordance with the Long-Term Incentive Compensation Plan that
was approved by shareholders at the Annual Meeting of Shareholders on April 6,
2000. Each performance stock unit (PSU) is equivalent to one share of MBT
Financial Corp. common stock. Stock will be issued to the participants following
a three year performance period that ends on December 31, 2009 based on the
cumulative earnings per share during that three year period. The PSUs vest on
December 31, 2009. There were 23,800 PSUs granted, and none will be considered
vested and earned for payment if the Company's three year cumulative earnings
per share are less than $2.91. The expense recorded for the PSUs in accordance
with FAS 123(R) was $44,000 in the first six months of 2007. The total expense
for equity based compensation was $340,000 in the first six months of 2007 and
$240,000 in the first six months of 2006.

4. LOANS

The Bank grants commercial, consumer, and mortgage loans primarily to customers
in Monroe County, Michigan, southern Wayne County, Michigan, and surrounding
areas. Although the Bank has a diversified loan portfolio, a substantial portion
of its debtors' ability to honor their contracts is dependent on the automotive,
manufacturing, and real estate development economic sectors.

Loans consist of the following (000s omitted):

<TABLE>
<CAPTION>
                                                June 30,    December 31,
                                                  2007          2006
                                               ----------   ------------
<S>                                            <C>          <C>
Residential real estate loans                  $  503,812     $513,289
Non-residential real estate loans                 345,080      328,145
Loans to finance agricultural production and
   other loans to farmers                           6,301        3,739
Commercial and industrial loans                    98,332       97,959
Loans to individuals for household, family,
   and other personal expenditures                 47,458       55,443
All other loans (including overdrafts)                424          473
                                               ----------     --------
      Total loans, gross                        1,001,407      999,048
      Less: Deferred loan fees                        634          771
                                               ----------     --------
      Total loans, net of deferred loan fees    1,000,773      998,277
      Less: Allowance for loan losses              14,080       13,764
                                               ----------     --------
                                               $  986,693     $984,513
                                               ==========     ========
</TABLE>

Loans are placed in a nonaccrual status when, in the opinion of Management, the
collection of additional interest is doubtful. All loan relationships over
$250,000 that are classified by Management as nonperforming as well as selected
performing accounts are reviewed for impairment. Allowances for loans determined
to be impaired are included in the allowance for loan losses. All cash received
on nonaccrual loans is applied to the principal balance. Nonperforming assets
consist of nonaccrual loans, loans 90 days or more past due, restructured loans,
and other real estate owned. Other real estate owned includes real estate that
has been


                                      -10-

<PAGE>

acquired in full or partial satisfaction of loan obligations or upon foreclosure
and real estate that the bank has purchased but no longer intends to use for
bank premises.

The following table summarizes nonperforming assets (000's omitted):

<TABLE>
<CAPTION>
                                       June 30,   December 31,
                                         2007         2006
                                       --------   ------------
<S>                                    <C>        <C>
Nonaccrual loans                       $20,017      $19,152
Loans 90 days past due                     105           69
Restructured loans                       1,371          888
                                       -------      -------
   Total nonperforming loans           $21,493      $20,109

Other real estate owned                  3,064        2,432
                                       -------      -------
   Total nonperforming assets          $24,557      $22,541
                                       =======      =======
Nonperforming assets to total assets      1.62%        1.44%
Allowance for loan losses to
   nonperforming assets                  57.34%       61.06%
</TABLE>

5. ALLOWANCE FOR LOAN LOSSES

Activity in the allowance for loan losses was as follows (000's omitted):

<TABLE>
<CAPTION>
                              Six months      Twelve months
                                ended             ended
                            June 30, 2007   December 31, 2006
                            -------------   -----------------
<S>                         <C>             <C>
Balance beginning of year      $13,764          $ 13,625
Provision for loan losses        1,500            16,475
Loans charged off               (2,170)          (18,377)
Recoveries                         986             2,041
                               -------          --------
Balance end of period          $14,080          $ 13,764
                               =======          ========
</TABLE>

For each period, the provision for loan losses in the income statement is based
on Management's estimate of the amount required to maintain an adequate
Allowance for Loan Losses.

To serve as a basis for making this provision, the Bank maintains an extensive
credit risk monitoring process that considers several factors including: current
economic conditions affecting the Bank's customers, the payment performance of
individual loans and pools of homogeneous loans, portfolio seasoning, changes in
collateral values, and detailed reviews of specific loan relationships. For
loans deemed to be impaired due to an expectation that all contractual payments
will probably not be received, impairment is measured by comparing the Bank's
recorded investment in the loan to the present value of expected cash flows
discounted at the loan's effective interest rate, or the fair value of the
collateral, or the loan's observable market price.

The provision for loan losses increases the Allowance for Loan Losses, a
valuation account which is netted against loans on the consolidated statements
of condition. When it is determined that a customer will not repay a loan, the
loan is charged off, reducing the Allowance for Loan Losses. If, subsequent to a
charge off, the Bank is able to collect additional amounts from the customer or
sell collateral worth more than earlier estimated, a recovery is recorded.


                                      -11-
<PAGE>

6. INVESTMENT SECURITIES

The following is a summary of the Bank's investment securities portfolio as of
June 30, 2007 and December 31, 2006 (000's omitted):

<TABLE>
<CAPTION>
                                                June 30, 2007            December 31, 2006
                                          ------------------------   ------------------------
                                          Amortized     Estimated    Amortized     Estimated
                                             Cost     Market Value      Cost     Market Value
                                          ---------   ------------   ---------   ------------
<S>                                       <C>         <C>            <C>         <C>
Held to Maturity
Obligations of U.S. Government Agencies    $     9       $     9      $    10       $    10
Obligations of States and Political
   Subdivisions                             49,725        49,880       64,928        65,330
                                           -------       -------      -------       -------
                                           $49,734       $49,889      $64,938       $65,340
                                           =======       =======      =======       =======
</TABLE>

<TABLE>
<CAPTION>
                                                 June 30, 2007           December 31, 2006
                                          ------------------------   ------------------------
                                          Amortized     Estimated    Amortized     Estimated
                                             Cost     Market Value      Cost     Market Value
                                          ---------   ------------   ---------   ------------
<S>                                       <C>         <C>            <C>         <C>
Available for Sale
Obligations of U.S. Government Agencies    $302,888     $295,813      $326,808     $322,934
Obligations of States and Political
   Subdivisions                              25,495       25,072        23,226       23,129
Other Securities                             11,028       11,055        28,004       28,024
                                           --------     --------      --------     --------
                                           $339,411     $331,940      $378,038     $374,087
                                           ========     ========      ========     ========
</TABLE>

The unrealized losses on investment securities are primarily the result of
increases in market interest rates and not the result of credit quality of the
issuers of the securities. The Company has the ability and intent to hold most
of these securities until recovery, which may be until maturity. For securities
in which the Company no longer has the intent to hold until recovery, the
securities are treated as other than temporarily impaired and the amount of
impairment is charged to earnings.

7. FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK

The Bank is a party to financial instruments with off-balance sheet risk in the
normal course of business to meet the financing needs of its customers. These
financial instruments include commitments to extend credit and standby letters
of credit. Those instruments involve, to varying degrees, elements of credit and
interest rate risk in excess of the amount recognized in the consolidated
statements of condition.

The Bank's exposure to credit loss in the event of nonperformance by the other
party to the financial instrument for commitments to extend credit and standby
letters of credit is represented by the contractual amount of those instruments.
The Bank uses the same credit policies in making commitments and conditional
obligations as it does for its other lending activities.


                                      -12-

<PAGE>

Financial instruments whose contractual amounts represent off-balance sheet
credit risk were as follows (000s omitted):

<TABLE>
<CAPTION>
                                                                Contractual Amount
                                                             -----------------------
                                                             June 30,   December 31,
                                                               2007         2006
                                                             --------   ------------
<S>                                                          <C>        <C>
Commitments to extend credit:
   Unused portion of commercial lines of credit               $95,343     $100,265
   Unused portion of credit card lines of credit                5,898        5,802
   Unused portion of home equity lines of credit               20,857       20,873
Standby letters of credit and financial guarantees written     11,690       12,234
All other off-balance sheet assets                             12,522        3,922
</TABLE>

Commitments to extend credit are agreements to lend to a customer as long as
there is no violation of any condition established in the contract. Most
commercial lines of credit are secured by real estate mortgages or other
collateral, and generally have fixed expiration dates or other termination
clauses. Since the lines of credit may expire without being drawn upon, the
total committed amounts do not necessarily represent future cash requirements.
Credit card lines of credit have various established expiration dates, but are
fundable on demand. Home equity lines of credit are secured by real estate
mortgages, a majority of which have ten year expiration dates, but are fundable
on demand. The Bank evaluates each customer's creditworthiness on a case-by-case
basis. The amount of the collateral obtained, if deemed necessary by the Bank
upon extension of credit, is based on Management's credit evaluation of the
counterparty.

Standby letters of credit written are conditional commitments issued by the Bank
to guarantee the performance of a customer to a third party. Those guarantees
are primarily issued to support public and private borrowing arrangements and
other business transactions.

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS

General

MBT Financial Corp. (the "Company) is a bank holding company with one
subsidiary, Monroe Bank & Trust ("the Bank"). The Bank is a commercial bank with
two wholly owned subsidiaries, MBT Credit Company, Inc. and MB&T Financial
Services. MBT Credit Company, Inc. conducts lending operations for the Bank and
MB&T Financial Services is an insurance agency which sells insurance policies to
the Bank. The Bank operates 21 branch offices in Monroe County, Michigan and 5
offices in Wayne County, Michigan. The Bank's primary source of income is
interest income on its loans and investments and its primary expense is interest
expense on its deposits and borrowings.

Certain statements contained herein are not based on historical facts and are
"forward-looking statements" within the meaning of Section 21A of the Securities
Exchange Act of 1934. Forward-looking statements which are based on various
assumptions (some of which are beyond the Company's control), may be identified
by reference to a future period or periods, or by the use of forward-looking
terminology, such as "may," "will," "believe," "expect," "estimate,"
"anticipate," "continue," or similar terms or variations on those terms, or the
negative of these terms. Actual results could differ materially from those set
forth in forward-looking statements, due to a variety of factors, including, but
not limited to, those related to the economic environment, particularly in the
market areas in which the Company operates, competitive products and pricing,
fiscal and monetary policies of the U.S. Government, changes in government
regulations affecting financial institutions, including regulatory fees and
capital requirements, changes in prevailing interest rates, acquisitions and the
integration of acquired


                                      -13-

<PAGE>

businesses, credit risk management, asset/liability management, changes in the
financial and securities markets, including changes with respect to the market
value of our financial assets, the availability of and costs associated with
sources of liquidity, and the ability of the Company to resolve or dispose of
problem loans.

The Company does not undertake, and specifically disclaims any obligation, to
publicly release the result of any revisions which may be made to any
forward-looking statements to reflect the occurrence of anticipated or
unanticipated events or circumstances after the date of such statements.

Critical Accounting Policies

The Company's Allowance for Loan Losses is a "critical accounting estimate"
because it is an estimate that is based on assumptions that are highly
uncertain, and if different assumptions were used or if any of the assumptions
used were to change, there could be a material impact on the presentation of the
Company's financial condition. These assumptions include, but are not limited
to, collateral values and the effect of economic conditions on the financial
condition of the borrowers. To determine the Allowance for Loan Losses, the
Company estimates losses on all loans that are not classified as non accrual or
renegotiated by applying historical loss rates to those loans in accordance with
SFAS 5. In addition, all loans that are non accrual or renegotiated are
individually tested for impairment. Any amount of monetary impairment is
included in the Allowance for Loan Losses in accordance with SFAS 114.

Financial Condition

The flat yield curve environment that began in 2005 persisted through the first
half of 2007. In this environment the spread between the yield on assets and the
cost of funds is narrow, providing little opportunity for profitable growth
without increasing exposure to interest rate risk. The Company continued its
strategy of controlling the decline in its net interest margin by restricting
its growth and changing the mix of its assets to increase the percent invested
in loans. Compared to June 30, 2006, the loan to asset ratio increased from
64.1% to 66.1% and total assets decreased $82.6 million.

Since December 31, 2006, total loans increased only $3.3 million (0.3%) as weak
regional economic conditions have resulted in slower loan demand. Total cash and
investments decreased $53.4 million (11.1%), and total assets decreased $50.8
million (3.2%). Consumer loans decreased $8.0 million, or 14.4% due to a
reduction in lending for autos and other personal expenditures. Loan growth
efforts are focused on real estate secured loans, particularly home equity
lending. Deposits decreased $37.6 million, or 3.4%, due to the normal seasonal
reduction in public fund deposits and pricing strategies designed to restrict
our certificate of deposit growth and control our interest expense. Total
capital decreased $5.0 million or 3.7% as the Company repurchased 338,600 shares
of its stock for $4.6 million, net income exceeded dividends declared by $1.3
million, and accumulated other comprehensive income decreased $2.1 million,
primarily due to the decrease in the value of securities available for sale. The
capital to assets ratio decreased from 8.68% at December 31, 2006 to 8.64% at
June 30, 2007.

The amount of nonperforming assets ("NPAs") increased $2.0 million or 8.9% since
year end, but total problem assets decreased $2.8 million, or 4.5%. The
Company's Allowance for Loan and Lease Losses ("ALLL") increased $316,000 since
December 31, 2006, as the provision for loan losses exceeded the net charge offs
during the first two quarters of 2007. The ALLL is now 1.40% of loans, compared
to 1.38% at year end. The ALLL is 57.3% of NPAs, a decrease from 61.1% at year
end, but an increase from 53.9% a year ago. Because a significant portion of the
Bank's lending is secured by real estate, we believe that at this level the ALLL
adequately estimates the potential losses in the loan portfolio.


                                      -14-

<PAGE>

Results of Operations - Second Quarter 2007 vs. Second Quarter 2006

Net Interest Income - A comparison of the income statements for the three months
ended June 30, 2006 and 2007 shows a decrease of $1.1 million, or 9.5% in Net
Interest Income. Interest income on loans decreased $89,000 or 0.5% as the
average loans outstanding decreased $23.0 million but the average yield on loans
increased from 7.04% to 7.16%. Even though the yield on investments and fed
funds sold increased from 5.01% to 5.21%, the interest income on investments and
fed funds sold decreased $563,000 as the average amount of investments and fed
funds sold decreased $62.7 million. The yields on assets increased slightly due
to the increases in market interest rates and the restructuring of the
investment portfolio that was completed early in the third quarter of 2006.
Shorter term market interest rates have increased more rapidly than the longer
term rates, causing funding costs to rise faster than asset yields. The interest
expense on deposits increased $715,000, or 9.8% as average deposits decreased
$39.7 million but the average cost of those deposits increased from 2.61% to
2.98%. The cost of borrowed funds decreased $232,000 as the average amount of
borrowed funds decreased $38.5 million and the average cost of the borrowings
increased from 5.65% to 6.07%.

Provision for Loan Losses - The Provision for Loan Losses decreased from $6.7
million in the second quarter of 2006 to $750,000 in the second quarter of 2007
due to a $6.0 million charge to provide for an individual credit relationship in
the second quarter of 2006. The provision in the second quarter of 2007 was
sufficient to provide for the net charge offs and to increase our Allowance for
Loan Losses as regional economic conditions remain weaker than the rest of the
country. Net charge offs were $739,000 during the second quarter of 2007,
compared to $3.4 million in the second quarter of 2006. Each quarter, the
Company conducts a review and analysis of its ALLL to ensure its adequacy. This
analysis involves specific allocations for impaired credits and a general
allocation for losses expected based on historical experience adjusted for
current conditions.

Other Income - Non interest income increased $5.4 million in the second quarter
of 2007 compared to the second quarter of 2006 due to a loss of $5.0 million to
write down investment securities prior to their sale in 2006. Excluding this
transaction, non interest income increased $0.4 million, or 9.5%. Origination
Fees and Gains on Mortgage Loans Sold increased as the amount of fixed rate
mortgage loans originated for sale has increased. Bank Owned Life Insurance
earnings increased due to an increase in the investment in BOLI from $39.0
million as of June 30, 2006 to $41.8 million at June 30, 2007. Other income
increased due to increased ATM and debit card activity.

Other Expenses - Total non interest expenses decreased $773,000 or 7.7% compared
to the second quarter of 2006 due to losses of $1.3 million on sales and write
downs of Other Real Estate Owned in 2006. Excluding the OREO activity, non
interest expenses increased $522,000, or 6.0%. Salaries and Employee Benefits
increased $259,000, or 4.9%, as the number of full time equivalent employees
increased from 418 to 425. Occupancy Expense increased $132,000, or 18.5%,
compared to the second quarter of 2006. Depreciation increased, primarily due to
the new headquarters building completed in the third quarter of 2006. Various
other expenses increased $131,000, or 4.8%.

As a result of the above activity, the Income (Loss) Before Income Taxes
increased $10.9 million to $4.9 million. The income tax expense (benefit)
increased $3.8 million from a benefit of $2.5 million to an expense of $1.3
million, and reflects an effective tax rate of 27.5%. The Net Profit of $3.5
million is an improvement of $7.1 million from the Loss of $3.6 million in the
second quarter of 2006.


                                      -15-

<PAGE>

Results of Operations - Six Months Ended June 30, 2007 vs. June 30, 2006

Net Interest Income - A comparison of the income statements for the six months
ended June 30, 2006 and 2007 shows a decrease of $2.1 million, or 8.8% in Net
Interest Income. Interest income on loans increased $503,000 or 1.4% as the
average loans outstanding decreased $13.7 million but the average yield on loans
increased from 7.01% to 7.21%. Even though the yield on investments and fed
funds sold increased from 5.00% to 5.28%, the interest income on investments and
fed funds sold decreased $1.2 million as the average amount of investments and
fed funds sold decreased $71.0 million. The yields on assets increased slightly
due to the increases in market interest rates and the restructuring of the
investment portfolio that was completed early in the third quarter of 2006.
Shorter term market interest rates have increased more rapidly than the longer
term rates, causing funding costs to rise faster than asset yields. The interest
expense on deposits increased $1.2 million, or 7.9% even though average deposits
decreased $55.8 million because the average cost of those deposits increased
from 2.60% to 2.95%. The cost of borrowed funds increased $284,000 as the
average amount of borrowed funds decreased $15.9 million while the average cost
of the borrowings increased from 5.57% to 6.06%.

Provision for Loan Losses - The Provision for Loan Losses decreased from $7.4
million in the first half of 2006 to $1.5 million in the first half of 2007 due
to a $6.0 million charge for an individual credit relationship in the 2006. The
provision in 2007 was sufficient to provide for the net charge offs and to
increase our Allowance for Loan Losses as regional economic conditions remain
weaker than the rest of the country. Net charge offs were $1.2 million during
the first six months of 2007, compared to $3.5 million in the first six months
of 2006. Each quarter, the Company conducts a review and analysis of its ALLL to
ensure its adequacy. This analysis involves specific allocations for impaired
credits and a general allocation for losses expected based on historical
experience adjusted for current conditions.

Other Income - Non interest income increased $5.5 million in the first six
months of 2007 compared to the first six months of 2006 due to a charge of $5.0
million to write down investment securities prior to their sale in 2006.
Excluding this transaction, non interest income increased $0.6 million, or 7.8%.
Origination Fees and Gains on Mortgage Loans Sold increased $117,000, or 42.4%
as the amount of fixed rate mortgage loans originated for sale has increased.
Bank Owned Life Insurance earnings increased due to an increase in the
investment in BOLI. Other income increased due to increased ATM and debit card
activity.

Other Expenses - Total non interest expenses decreased $150,000 or 0.8% compared
to the first six months of 2006 due to losses of $1.2 million on sales and write
downs of Other Real Estate Owned in 2006. Excluding the OREO activity, non
interest expenses increased $1.1 million, or 6.2%. Salaries and Employee
Benefits increased $530,000, or 5.0%, as the number of full time equivalent
employees increased from 418 to 425. Occupancy Expense increased $245,000, or
16.6%, compared to the first six months of 2006. Depreciation increased,
primarily due to the new headquarters building completed in the third quarter of
2006. Various other expenses increased $302,000, or 5.7%.

As a result of the above activity, the Income Before Income Taxes increased $9.4
million to $10.0 million. The income tax expense (benefit) increased $3.3
million from a benefit of $0.6 million to an expense of $2.7 million, and
reflects an effective tax rate of 27.3%. The Net Profit of $7.2 million is an
increase of $6.1 million compared to the profit of $1.1 million earned in the
first six months of 2006.


                                      -16-

<PAGE>

Liquidity and Capital

The Company has maintained sufficient liquidity to fund its loan growth and
allow for fluctuations in deposit levels. Internal sources of liquidity are
provided by the maturities of loans and securities as well as holdings of
securities Available for Sale. External sources of liquidity include a line of
credit with the Federal Home Loan Bank of Indianapolis, the Federal funds lines
that have been established with correspondent banks, and Repurchase Agreements
with money center banks that allow us to pledge securities as collateral for
borrowings. As of June 30, 2007, the Bank utilized $256.5 million of its
authorized limit of $275 million with the Federal Home Loan Bank of Indianapolis
and none of its $110 million of federal funds lines with its correspondent
banks.

Total stockholders' equity of the Company was $131.1 million at June 30, 2007
and $136.1 million at December 31, 2006. The ratio of equity to assets was 8.6%
at June 30, 2007 and 8.7% at December 31, 2006. Federal bank regulatory agencies
have set capital adequacy standards for Total Risk Based Capital, Tier 1 Risk
Based Capital, and Leverage Capital. These standards require banks to maintain
Leverage and Tier 1 ratios of at least 4% and a Total Capital ratio of at least
8% to be adequately capitalized. The regulatory agencies consider a bank to be
well capitalized if its Total Risk Based Capital is at least 10% of Risk
Weighted Assets, Tier 1 Capital is at least 6% of Risk Weighted Assets, and the
Leverage Capital Ratio is at least 5%.

The following table summarizes the capital ratios of the Company:

<TABLE>
<CAPTION>
                                                                Minimum to be Well
                            June 30, 2007   December 31, 2006       Capitalized
                            -------------   -----------------   ------------------
<S>                         <C>             <C>                 <C>
Leverage Capital                 9.1%              8.9%                 5.0%
Tier 1 Risk Based Capital       12.8%             12.8%                 6.0%
Total Risk Based Capital        14.1%             14.0%                10.0%
</TABLE>

At June 30, 2007 and December 31, 2006, the Bank was in compliance with the
capital guidelines and is considered "well-capitalized" under regulatory
standards.

Market risk for the Bank, as is typical for most banks, consists mainly of
interest rate risk and market price risk. The Bank's earnings and the economic
value of its equity are exposed to interest rate risk and market price risk, and
monitoring this risk is the responsibility of the Asset/Liability Management
Committee (ALCO) of the Bank. The Bank's market risk is monitored monthly and it
has not changed significantly since year-end 2006.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The Bank faces market risk to the extent that the fair values of its financial
instruments are affected by changes in interest rates. The Bank does not face
market risk due to changes in foreign currency exchange rates, commodity prices,
or equity prices. The asset and liability management process of the Bank seeks
to monitor and manage the amount of interest rate risk. This is accomplished by
analyzing the differences in repricing opportunities for assets and liabilities,
by simulating operating results under varying interest rate scenarios, and by
estimating the change in the net present value of the Bank's assets and
liabilities due to interest rate changes.

Each month, the Asset and Liability Committee (ALCO), which includes the senior
management of the Bank, estimates the effect of interest rate changes on the
projected net interest income of the Bank. The sensitivity of the Bank's net
interest income to changes in interest rates is measured by using a computer
based simulation model to estimate the impact on earnings of a


                                      -17-

<PAGE>

gradual increase or decrease of 100 basis points in the prime rate. The net
interest income projections are compared to a base case projection, which
assumes no changes in interest rates.

The Bank's ALCO has established limits in the acceptable amount of interest rate
risk, as measured by the change in the Bank's projected net interest income, in
its policy. Throughout the first six months of 2007, the estimated variability
of the net interest income was within the Bank's established policy limits.

The ALCO also monitors interest rate risk by estimating the effect of changes in
interest rates on the economic value of the Bank's equity each month. The actual
economic value of the Bank's equity is first determined by subtracting the fair
value of the Bank's liabilities from the fair value of the Bank's assets. The
fair values are determined in accordance with Statement of Financial Accounting
Standards Number 107, Disclosures about Fair Value of Financial Instruments. The
Bank estimates the interest rate risk by calculating the effect of market
interest rate shocks on the economic value of its equity. For this analysis, the
Bank assumes immediate parallel shifts of plus or minus 100 and 200 basis points
in interest rates. The discount rates used to determine the present values of
the loans and deposits, as well as the prepayment rates for the loans, are based
on Management's expectations of the effect of the rate shock on the market for
loans and deposits.

The Bank's ALCO has established limits in the acceptable amount of interest rate
risk, as measured by the change in economic value of the Bank's equity, in its
policy. Throughout the first six months of 2007, the estimated variability of
the economic value of equity was within the Bank's established policy limits.

The Bank's interest rate risk, as measured by the net interest income and
economic value of equity simulations, has not changed significantly from
December 31, 2006.

ITEM 4. CONTROLS AND PROCEDURES

The Company carried out an evaluation, under the supervision and with the
participation of the Company's management, including the Company's Chief
Executive Officer and Chief Financial Officer, of the effectiveness of the
design and operation of the Company's disclosure controls and procedures as of
June 30, 2007, pursuant to Exchange Act Rule 13a-15. Based upon that evaluation,
the Chief Executive Officer and Chief Financial Officer concluded that the
Company's disclosure controls and procedures were effective as of June 30, 2007,
in alerting them in a timely manner to material information relating to the
Company (including its consolidated subsidiaries) required to be included in the
Company's periodic SEC filings.

There was no change in the Company's internal control over financial reporting
that occurred during the Company's fiscal quarter ended June 30, 2007, that has
materially affected, or is reasonably likely to materially affect, the Company's
internal control over financial reporting.

PART II OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

MBT Financial Corp. and its subsidiaries are not a party to, nor is any of their
property the subject of any material legal proceedings other than ordinary
routine litigation incidental to their respective businesses, nor are any such
proceedings known to be contemplated by governmental authorities.


                                      -18-

<PAGE>

ITEM 1A. RISK FACTORS

There have been no material changes in the risk factors disclosed by the Company
in its Report on Form 10-K for the fiscal year ended December 31, 2006.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

The Company has a stock repurchase program which it publicly announced on
January 9, 2007. On that date, the Board of Directors authorized the repurchase
of 1 million of the Company's common shares, which authorization will expire on
December 31, 2007. The following table summarizes the repurchase activity of the
Company's stock during the three months ended June 30, 2007:

<TABLE>
<CAPTION>
                                                               Total Number of
                                                             Shares Purchased as      Maximum Number of
                                 Total Number     Average          Part of             Shares that May
                                   of Shares    Price Paid    Publicly Announced   Yet Be Purchased Under
                                   Purchased     per Share    Plans or Programs     the Plans or Programs
                                 ------------   ----------   -------------------   ----------------------
<S>                              <C>            <C>          <C>                   <C>
April 1, 2007 - April 30, 2007       24,000       $12.83            24,000                 904,500
May 1, 2007 - May 31, 2007           98,900       $12.65            98,900                 805,600
June 1, 2007 - June 30, 2007        144,200       $14.07           144,200                 661,400
                                    -------       ------           -------                 -------
Total                               267,100       $13.43           267,100
</TABLE>

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

The Annual Meeting of Shareholders of MBT Financial Corp. was held on May 3,
2007. The following directors were elected to a new term of office:

     Peter H. Carlton
     H. Douglas Chaffin
     Joseph S. Daly
     Thomas M. Huner
     Rocque E. Lipford
     William D. McIntyre, Jr.
     Michael J. Miller
     Debra J. Shah
     Philip P. Swy
     Karen M. Wilson

The Annual Meeting of Shareholders of MBT Financial Corp. was held for the
following purposes:

     1.   To elect a Board of Directors for the ensuing year;

     2.   To transact such other business as may properly come before the
          meeting or any adjournment thereof.


                                      -19-

<PAGE>

The results of the voting are as follows:

Proposal 1, Election of Directors:

<TABLE>
<CAPTION>
                                         Withhold
                              For       Authority
                           ----------   ---------
<S>                        <C>          <C>
Peter H. Carlton           14,242,078     312,960
H. Douglas Chaffin         14,342,580     212,458
Joseph S. Daly             13,146,378   1,408,660
Thomas M. Huner            14,204,740     350,298
Rocque E. Lipford          11,049,027   3,506,012
William D. McIntyre, Jr.   13,212,079   1,342,959
Michael J. Miller          14,215,533     339,506
Debra J. Shah              14,089,369     465,669
Philip P. Swy              14,134,060     420,978
Karen M. Wilson            13,894,872     660,166
</TABLE>

ITEM 5. OTHER INFORMATION

No matters to be reported.

ITEM 6. EXHIBITS

The following exhibits are filed as a part of this report:

     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-K for its fiscal year
          ended December 31, 2004.

     10.1 MBT Financial Corp. Severance Agreement with Scott E. McKelvey.

     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.


                                      -20-

<PAGE>

                                   SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.

                                        MBT Financial Corp.
                                        (Registrant)


August 7, 2007                          By /s/ H. Douglas Chaffin
Date                                       -------------------------------------
                                           H. Douglas Chaffin
                                           President & Chief Executive Officer


August 7, 2007                          By /s/ John L. Skibski
Date                                       ------------------------------------
                                           John L. Skibski
                                           Executive Vice President and
                                           Chief Financial Officer


                                      -21-

<PAGE>

                                  EXHIBIT INDEX

<TABLE>
<CAPTION>
Exhibit Number                       Description of Exhibits
-------------    ---------------------------------------------------------------
<S>              <C>
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-K for its
                 fiscal year ended December 31, 2004.

10.1             MBT Financial Corp. Severance Agreement with Scott E. McKelvey

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 Executive Officer pursuant to 18 U.S.C.
                 Section 1350, as enacted pursuant to Section 906 of the
                 Sarbanes-Oxley Act of 2002.
</TABLE>