MIDDLEFIELD, Ohio, April 30, 2024 (GLOBE NEWSWIRE) -- Middlefield Banc Corp. (NASDAQ: MBCN) today reported financial results for the three months ended March 31, 2024.
2024 First Quarter Financial Highlights (on a year-over-year basis unless noted):
- Net income was $4.2 million, compared to $4.9 million for the quarter ended March 31, 2023, and $3.5 million for the quarter ended December 31, 2023
- Earnings were $0.51 per diluted share, compared to $0.60 per diluted share for the quarter ended March 31, 2023, and $0.44 per diluted share for the quarter ended December 31, 2023
- Net interest income after the provision for credit losses was $15.1 million, compared to $16.0 million
- Noninterest income increased 6.9% to $1.8 million
- Total loans increased 7.8% to a record $1.49 billion
- Total deposits were $1.45 billion, compared to $1.43 billion
- Return on average assets annualized was 0.92%, compared to 0.78% for the quarter ended December 31, 2023
- Return on average equity annualized was 8.16%, compared to 7.13% for the quarter ended December 31, 2023
- Return on average tangible common equity(1) was 10.30%, compared to 9.11% for the quarter ended December 31, 2023
- Excellent asset quality with nonperforming assets to total assets of 0.60%, compared to 0.73%
- Allowance for credit losses was 1.41% of total loans, compared to 1.46%
- Equity to assets remained strong at 11.32%, compared to 11.30%
- Book value increased 5.6% to $25.48 per share
(1) See non-GAAP reconciliation under the section "GAAP to Non-GAAP Reconciliations"
Ronald L. Zimmerly, Jr., President and Chief Executive Officer, stated, "2024 is off to a solid start. Over the past three months, our pre-tax, pre-provision income(1) stabilized, reflecting positive loan growth, strong asset quality, higher noninterest income, and controlled operating expenses. During this period, our ROAA, ROAE, and ROATCE increased due to improved profitability. In addition, we ended the quarter with record total loans as our expanded Commercial, Business, and Consumer Banking teams capitalized on favorable demand trends across our Northeast, Central, and Western Ohio markets."
"While we expect uncertainty about FOMC monetary policies and their impact on national economic conditions in 2024 to continue, economic activity and employment within our Ohio markets are stable. In addition, our asset quality remains excellent, and nonperforming assets at the end of the first quarter improved slightly from the fourth quarter and were down 14.5% from last year's first quarter. Our first quarter performance is encouraging and reflects our teams' hard work and contributions across our three Ohio markets. As we look to the remainder of the year, we are focused on pursuing our multi-year strategic growth goals: increasing revenue opportunities, improving our customer experience, and advancing operational performance to create lasting value for our shareholders," concluded Mr. Zimmerly.
Income Statement
Net interest income for the 2024 first quarter decreased 9.3% to $15.0 million, compared to $16.5 million for the same period last year. The net interest margin for the 2024 first quarter was 3.53%, compared to 4.19% last year.
For the 2024 first quarter, noninterest income increased 6.9% to $1.8 million, compared to $1.7 million for the same period of 2023.
Noninterest expense for the 2024 first quarter was $12.0 million, compared to $11.8 million for the 2023 first quarter.
Net income for the 2024 first quarter ended March 31, 2024, was $4.2 million, or $0.51 per diluted share, compared to $4.9 million, or $0.60 per diluted share, for the same period last year.
For the 2024 first quarter, pre-tax, pre-provision net income was $4.8 million, compared to $6.4 million last year. (See non-GAAP reconciliation under the section "GAAP to Non-GAAP Reconciliations").
Balance Sheet
Total assets at March 31, 2024, increased 5.1% to $1.82 billion, compared to $1.73 billion at March 31, 2023. Total loans at March 31, 2024, were $1.49 billion, compared to $1.38 billion at March 31, 2023. The 7.8% year-over-year increase in total loans was primarily due to higher commercial and industrial, residential real estate, commercial real estate, and construction and other loans.
Total liabilities at March 31, 2024, increased 5.1% to $1.61 billion, compared to $1.53 billion at March 31, 2023. Total deposits at March 31, 2024, were $1.45 billion, compared to $1.43 billion at March 31, 2023. The 1.5% year-over-year increase in deposits was primarily due to growth in money market, interest-bearing demand, and time deposits, partially offset by declines in noninterest-bearing demand and savings accounts. Noninterest-bearing demand deposits were 27.0% of total deposits at March 31, 2024, compared to 33.3% at March 31, 2023. At March 31, 2024, the Company had brokered deposits of $90.4 million, compared to $5.0 million at March 31, 2023.
The investment securities available for sale portfolio was $167.9 million at March 31, 2024, compared with $169.6 million at March 31, 2023.
Michael Ranttila, Chief Financial Officer, stated, "Asset quality improved on both a sequential and year-over-year basis, reflecting our conservative underwriting standards and balanced portfolio composition. Nonperforming loans at March 31, 2024, included one self-storage loan in the Southwest Ohio market totaling $3.6 million. We believe this issue is isolated to this borrower and does not indicate a trend in the market, our portfolio, or an issue in underwriting."
Mr. Ranttila continued, "We also remain focused on identifying opportunities to improve our cost of funds, pay down higher cost capital, and grow core deposits to support loan demand. Over the past three months, total deposits increased 1.4%, while our Federal Home Loan Bank advances decreased by nearly 16.0%. With sufficient liquidity, stabilizing profitability, and excellent asset quality, I am pleased to report that during the first quarter, we repurchased 43,858 shares of our common stock at an average price of $24.00 per share, reflecting our long-standing commitment to return excess capital to shareholders."
Middlefield's CRE portfolio included the following categories at March 31, 2024:
| CRE Category | Balance (in thousands) | Percent of CRE Portfolio | Percent of Loan Portfolio | |||||
| Multi-Family | $ | 81,691 | 12.4% | 5.5% | ||||
| Office Space | $ | 78,789 | 12.0% | 5.3% | ||||
| Shopping Plazas | $ | 73,250 | 11.1% | 4.9% | ||||
| Self-Storage | $ | 61,525 | 9.3% | 4.1% | ||||
| Hospitality | $ | 39,779 | 6.0% | 2.7% | ||||
| Senior Living | $ | 26,545 | 4.0% | 1.8% | ||||
| Other | $ | 297,500 | 45.2% | 19.9% | ||||
| Total CRE | $ | 659,079 | 100.0% | 44.2% | ||||
Stockholders' Equity and Dividends
At March 31, 2024, stockholders' equity was $205.6 million compared to $195.2 million at March 31, 2023. The 5.3% year-over-year increase in stockholders' equity was primarily due to higher retained earnings and an improvement in the unrealized losses on the available-for-sale investment portfolio, partially offset by the Company's stock repurchase program. On a per-share basis, shareholders' equity at March 31, 2024, was $25.48 compared to $24.13 at March 31, 2023.
At March 31, 2024, tangible stockholders' equity(1) was $162.8 million, compared to $156.0 million at March 31, 2023. On a per-share basis, tangible stockholders' equity(1) was $20.18 at March 31, 2024, compared to $19.29 at March 31, 2023. (1)See non-GAAP reconciliation under the section "GAAP to Non-GAAP Reconciliations".
For the 2024 first quarter, the Company declared cash dividends of $0.20 per share, totaling $1.6 million.
At March 31, 2024, the Company's equity-to-assets ratio was 11.32%, compared to 11.30% at March 31, 2023.
Asset Quality
For the 2024 first quarter, the Company recorded a recovery of credit losses of $100,000 versus a provision for credit losses of $500,000 for the same period last year.
Net recoveries were $68,000, or 0.02% of average loans, annualized, during the first quarter of 2024, compared to net recoveries of $8,000, or 0.00% of average loans, annualized, at March 31, 2023.
Nonperforming loans at March 31, 2024, were $10.8 million, compared to $6.9 million at March 31, 2023. Nonperforming assets at March 31, 2024, were $10.8 million, compared to $12.7 million at March 31, 2023. The allowance for credit losses at March 31, 2024, stood at $21.1 million, or 1.41% of total loans, compared to $20.2 million, or 1.46% of total loans at March 31, 2023. The decrease in the allowance for credit losses as a percentage of total loans was mainly due to changes in projected loss drivers, prepayment assumptions, and curtailment expectations over the reasonable and supportable forecast period.
About Middlefield Banc Corp.
Middlefield Banc Corp., headquartered in Middlefield, Ohio, is the Bank holding Company of The Middlefield Banking Company, with total assets of $1.82 billion at March 31, 2024. The Bank operates 21 full-service banking centers and an LPL Financial® brokerage office serving Ada, Beachwood, Bellefontaine, Chardon, Cortland, Dublin, Garrettsville, Kenton, Mantua, Marysville, Middlefield, Newbury, Orwell, Plain City, Powell, Solon, Sunbury, Twinsburg, and Westerville. The Bank also operates a Loan Production Office in Mentor, Ohio.
Additional information is available at: www.middlefieldbank.bank
NON-GAAP FINANCIAL MEASURES
This press release includes disclosure of Middlefield Banc Corp.'s tangible book value per share, return on average tangible equity, and pre-tax, pre-provision for loan losses income, which are financial measures not prepared in accordance with generally accepted accounting principles in the United States (GAAP). A non-GAAP financial measure is a numerical measure of historical or future financial performance, financial position or cash flows that excludes or includes amounts required to be disclosed by GAAP. Middlefield Banc Corp. believes that these non-GAAP financial measures provide both management and investors a more complete understanding of the underlying operational results and trends and Middlefield Banc Corp.'s marketplace performance. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the numbers prepared in accordance with GAAP. The reconciliations of non-GAAP financial measures are included in the following Consolidated Financial Highlights tables below.
FORWARD-LOOKING STATEMENTS
This press release of Middlefield Banc Corp. and the reports Middlefield Banc Corp. files with the Securities and Exchange Commission often contain "forward-looking statements" relating to present or future trends or factors affecting the banking industry and, specifically, the financial operations, markets and products of Middlefield Banc Corp. These forward-looking statements involve certain risks and uncertainties. There are several important factors that could cause Middlefield Banc Corp.'s future results to differ materially from historical performance or projected performance. These factors include, but are not limited to: (1) a significant increase in competitive pressures among financial institutions; (2) changes in the interest rate environment that may reduce interest margins; (3) changes in prepayment speeds, charge-offs and loan loss provisions; (4) less favorable than expected general economic conditions; (5) legislative or regulatory changes that may adversely affect businesses in which Middlefield Banc Corp. is engaged; (6) technological issues which may adversely affect Middlefield Banc Corp.'s financial operations or customers; (7) changes in the securities markets; or (8) risk factors mentioned in the reports and registration statements Middlefield Banc Corp. files with the Securities and Exchange Commission. Middlefield Banc Corp. undertakes no obligation to release revisions to these forward-looking statements or to reflect events or circumstances after the date of this press release.
| MIDDLEFIELD BANC CORP. | |||||||||||||||||||||||
| Consolidated Selected Financial Highlights | |||||||||||||||||||||||
| (Dollar amounts in thousands, unaudited) | |||||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||||||
| Balance Sheets (period end) | 2024 | 2023 | 2023 | 2023 | 2023 | ||||||||||||||||||
| ASSETS | |||||||||||||||||||||||
| Cash and due from banks | $ | 44,816 | $ | 56,397 | $ | 56,228 | $ | 49,422 | $ | 59,609 | |||||||||||||
| Federal funds sold | 1,438 | 4,439 | 9,274 | 9,654 | 7,048 | ||||||||||||||||||
| Cash and cash equivalents | 46,254 | 60,836 | 65,502 | 59,076 | 66,657 | ||||||||||||||||||
| Investment securities available for sale, at fair value | 167,890 | 170,779 | 159,414 | 167,209 | 169,605 | ||||||||||||||||||
| Other investments | 907 | 955 | 958 | 711 | 777 | ||||||||||||||||||
| Loans held for sale | - | - | 632 | 171 | 104 | ||||||||||||||||||
| Loans: | |||||||||||||||||||||||
| Commercial real estate: | |||||||||||||||||||||||
| Owner occupied | 178,543 | 183,545 | 185,593 | 187,919 | 185,661 | ||||||||||||||||||
| Non-owner occupied | 398,845 | 401,580 | 382,676 | 385,846 | 400,314 | ||||||||||||||||||
| Multifamily | 81,691 | 82,506 | 82,578 | 58,579 | 63,892 | ||||||||||||||||||
| Residential real estate | 331,480 | 328,854 | 321,331 | 312,196 | 306,179 | ||||||||||||||||||
| Commercial and industrial | 227,433 | 221,508 | 214,334 | 209,349 | 195,024 | ||||||||||||||||||
| Home equity lines of credit | 129,287 | 127,818 | 127,494 | 126,894 | 126,555 | ||||||||||||||||||
| Construction and other | 135,716 | 125,105 | 127,106 | 118,851 | 97,406 | ||||||||||||||||||
| Consumer installment | 7,131 | 7,214 | 7,481 | 9,801 | 7,816 | ||||||||||||||||||
| Total loans | 1,490,126 | 1,478,130 | 1,448,593 | 1,409,435 | 1,382,847 | ||||||||||||||||||
| Less allowance for credit losses | 21,069 | 21,693 | 20,986 | 20,591 | 20,162 | ||||||||||||||||||
| Net loans | 1,469,057 | 1,456,437 | 1,427,607 | 1,388,844 | 1,362,685 | ||||||||||||||||||
| Premises and equipment, net | 21,035 | 21,339 | 21,708 | 21,629 | 21,775 | ||||||||||||||||||
| Goodwill | 36,356 | 36,356 | 36,197 | 36,197 | 31,735 | ||||||||||||||||||
| Core deposit intangibles | 6,384 | 6,642 | 6,906 | 7,171 | 7,436 | ||||||||||||||||||
| Bank-owned life insurance | 34,575 | 34,349 | 34,153 | 34,235 | 34,015 | ||||||||||||||||||
| Other real estate owned | - | - | 5,792 | 5,792 | 5,792 | ||||||||||||||||||
| Accrued interest receivable and other assets | 34,210 | 35,190 | 34,551 | 30,472 | 27,258 | ||||||||||||||||||
| TOTAL ASSETS | $ | 1,816,668 | $ | 1,822,883 | $ | 1,793,420 | $ | 1,751,507 | $ | 1,727,839 | |||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||||||
| 2024 | 2023 | 2023 | 2023 | 2023 | |||||||||||||||||||
| LIABILITIES | |||||||||||||||||||||||
| Deposits: | |||||||||||||||||||||||
| Noninterest-bearing demand | $ | 390,185 | $ | 401,384 | $ | 424,055 | $ | 441,102 | $ | 474,977 | |||||||||||||
| Interest-bearing demand | 209,015 | 205,582 | 243,973 | 229,633 | 196,086 | ||||||||||||||||||
| Money market | 318,823 | 274,682 | 275,766 | 241,537 | 221,723 | ||||||||||||||||||
| Savings | 196,721 | 210,639 | 216,453 | 231,508 | 287,859 | ||||||||||||||||||
| Time | 332,165 | 334,315 | 296,732 | 287,861 | 244,962 | ||||||||||||||||||
| Total deposits | 1,446,909 | 1,426,602 | 1,456,979 | 1,431,641 | 1,425,607 | ||||||||||||||||||
| Federal Home Loan Bank advances | 137,000 | 163,000 | 118,000 | 100,000 | 85,000 | ||||||||||||||||||
| Other borrowings | 11,812 | 11,862 | 11,912 | 11,961 | 12,010 | ||||||||||||||||||
| Accrued interest payable and other liabilities | 15,372 | 15,738 | 12,780 | 10,678 | 10,057 | ||||||||||||||||||
| TOTAL LIABILITIES | 1,611,093 | 1,617,202 | 1,599,671 | 1,554,280 | 1,532,674 | ||||||||||||||||||
| STOCKHOLDERS' EQUITY | |||||||||||||||||||||||
| Common stock, no par value; 25,000,000 shares authorized, 9,946,454 shares issued, 8,067,144 shares outstanding as of March 31, 2024 | 161,823 | 161,388 | 161,312 | 161,211 | 161,248 | ||||||||||||||||||
| Retained earnings | 102,791 | 100,237 | 98,717 | 96,500 | 93,024 | ||||||||||||||||||
| Accumulated other comprehensive loss | (18,130 | ) | (16,090 | ) | (26,426 | ) | (20,630 | ) | (19,253 | ) | |||||||||||||
| Treasury stock, at cost; 1,879,310 shares as of March 31, 2024 | (40,909 | ) | (39,854 | ) | (39,854 | ) | (39,854 | ) | (39,854 | ) | |||||||||||||
| TOTAL STOCKHOLDERS' EQUITY | 205,575 | 205,681 | 193,749 | 197,227 | 195,165 | ||||||||||||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 1,816,668 | $ | 1,822,883 | $ | 1,793,420 | $ | 1,751,507 | $ | 1,727,839 | |||||||||||||
| MIDDLEFIELD BANC CORP. | |||||||||||||||||||||||
| Consolidated Selected Financial Highlights | |||||||||||||||||||||||
| (Dollar amounts in thousands, unaudited) | |||||||||||||||||||||||
| For the Three Months Ended | |||||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||||||
| Statements of Income | 2024 | 2023 | 2023 | 2023 | 2023 | ||||||||||||||||||
| INTEREST AND DIVIDEND INCOME | |||||||||||||||||||||||
| Interest and fees on loans | $ | 22,395 | $ | 22,027 | $ | 20,899 | $ | 20,762 | $ | 18,275 | |||||||||||||
| Interest-earning deposits in other institutions | 437 | 370 | 300 | 369 | 250 | ||||||||||||||||||
| Federal funds sold | 152 | 94 | 266 | 158 | 253 | ||||||||||||||||||
| Investment securities: | |||||||||||||||||||||||
| Taxable interest | 467 | 479 | 477 | 479 | 458 | ||||||||||||||||||
| Tax-exempt interest | 972 | 976 | 980 | 978 | 980 | ||||||||||||||||||
| Dividends on stock | 189 | 144 | 148 | 91 | 88 | ||||||||||||||||||
| Total interest and dividend income | 24,612 | 24,090 | 23,070 | 22,837 | 20,304 | ||||||||||||||||||
| INTEREST EXPENSE | |||||||||||||||||||||||
| Deposits | 7,466 | 6,522 | 5,632 | 3,851 | 2,990 | ||||||||||||||||||
| Short-term borrowings | 1,993 | 2,013 | 1,258 | 1,462 | 653 | ||||||||||||||||||
| Other borrowings | 184 | 179 | 213 | 170 | 155 | ||||||||||||||||||
| Total interest expense | 9,643 | 8,714 | 7,103 | 5,483 | 3,798 | ||||||||||||||||||
| NET INTEREST INCOME | 14,969 | 15,376 | 15,967 | 17,354 | 16,506 | ||||||||||||||||||
| (Recovery of) Provision for credit losses | (136 | ) | 554 | 1,127 | 814 | 507 | |||||||||||||||||
| NET INTEREST INCOME AFTER (RECOVERY OF) PROVISION FOR CREDIT LOSSES | 15,105 | 14,822 | 14,840 | 16,540 | 15,999 | ||||||||||||||||||
| NONINTEREST INCOME | |||||||||||||||||||||||
| Service charges on deposit accounts | 909 | 997 | 954 | 940 | 987 | ||||||||||||||||||
| (Loss) gain on equity securities | (52 | ) | (4 | ) | 48 | (67 | ) | (138 | ) | ||||||||||||||
| (Loss) gain on other real estate owned | - | (172 | ) | - | - | 2 | |||||||||||||||||
| Earnings on bank-owned life insurance | 227 | 196 | 207 | 220 | 200 | ||||||||||||||||||
| Gain on sale of loans | 10 | 23 | 45 | 6 | 23 | ||||||||||||||||||
| Revenue from investment services | 204 | 193 | 190 | 174 | 186 | ||||||||||||||||||
| Gross rental income | 261 | 132 | 110 | 77 | 102 | ||||||||||||||||||
| Other income | 237 | 237 | 263 | 242 | 318 | ||||||||||||||||||
| Total noninterest income | 1,796 | 1,602 | 1,817 | 1,592 | 1,680 | ||||||||||||||||||
| NONINTEREST EXPENSE | |||||||||||||||||||||||
| Salaries and employee benefits | 6,333 | 6,646 | 5,994 | 6,019 | 5,852 | ||||||||||||||||||
| Occupancy expense | 552 | 512 | 699 | 659 | 696 | ||||||||||||||||||
| Equipment expense | 240 | 273 | 297 | 354 | 317 | ||||||||||||||||||
| Data processing costs | 1,249 | 1,348 | 1,209 | 1,137 | 1,070 | ||||||||||||||||||
| Ohio state franchise tax | 397 | 397 | 398 | 398 | 385 | ||||||||||||||||||
| Federal deposit insurance expense | 251 | 285 | 207 | 249 | 120 | ||||||||||||||||||
| Professional fees | 558 | 660 | 545 | 550 | 538 | ||||||||||||||||||
| Advertising expense | 419 | 162 | 414 | 415 | 486 | ||||||||||||||||||
| Software amortization expense | 22 | 22 | 24 | 23 | 26 | ||||||||||||||||||
| Core deposit intangible amortization | 258 | 264 | 265 | 265 | 265 | ||||||||||||||||||
| Gross other real estate owned expenses | 99 | 120 | 195 | 63 | 132 | ||||||||||||||||||
| Merger-related costs | - | - | 22 | 206 | 245 | ||||||||||||||||||
| Other expense | 1,587 | 1,483 | 1,849 | 1,716 | 1,661 | ||||||||||||||||||
| Total noninterest expense | 11,965 | 12,172 | 12,118 | 12,054 | 11,793 | ||||||||||||||||||
| Income before income taxes | 4,936 | 4,252 | 4,539 | 6,078 | 5,886 | ||||||||||||||||||
| Income taxes | 769 | 709 | 703 | 986 | 989 | ||||||||||||||||||
| NET INCOME | $ | 4,167 | $ | 3,543 | $ | 3,836 | $ | 5,092 | $ | 4,897 | |||||||||||||
| PTPP (1) | $ | 4,800 | $ | 4,806 | $ | 5,666 | $ | 6,892 | $ | 6,393 | |||||||||||||
| (1) See section "GAAP to Non-GAAP Reconciliations" for the reconciliation of GAAP performance measures to non-GAAP measures. | |||||||||||||||||||||||
| MIDDLEFIELD BANC CORP. | |||||||||||||||||||||||
| Consolidated Selected Financial Highlights | |||||||||||||||||||||||
| (Dollar amounts in thousands, except per share and share amounts, unaudited) | |||||||||||||||||||||||
| For the Three Months Ended | |||||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||||||
| 2024 | 2023 | 2023 | 2023 | 2023 | |||||||||||||||||||
| Per common share data | |||||||||||||||||||||||
| Net income per common share - basic | $ | 0.52 | $ | 0.44 | $ | 0.47 | $ | 0.63 | $ | 0.60 | |||||||||||||
| Net income per common share - diluted | $ | 0.51 | $ | 0.44 | $ | 0.47 | $ | 0.63 | $ | 0.60 | |||||||||||||
| Dividends declared per share | $ | 0.20 | $ | 0.25 | $ | 0.20 | $ | 0.20 | $ | 0.20 | |||||||||||||
| Book value per share (period end) | $ | 25.48 | $ | 25.41 | $ | 23.94 | $ | 24.38 | $ | 24.13 | |||||||||||||
| Tangible book value per share (period end) (1) (2) | $ | 20.18 | $ | 20.10 | $ | 18.62 | $ | 19.02 | $ | 19.29 | |||||||||||||
| Dividends declared | $ | 1,613 | $ | 2,023 | $ | 1,619 | $ | 1,616 | $ | 1,605 | |||||||||||||
| Dividend yield | 3.37 | % | 3.06 | % | 3.12 | % | 2.99 | % | 2.89 | % | |||||||||||||
| Dividend payout ratio | 38.71 | % | 57.10 | % | 42.21 | % | 31.74 | % | 32.78 | % | |||||||||||||
| Average shares outstanding - basic | 8,091,203 | 8,093,478 | 8,092,494 | 8,088,793 | 8,138,771 | ||||||||||||||||||
| Average shares outstanding - diluted | 8,097,219 | 8,116,261 | 8,101,306 | 8,101,984 | 8,152,629 | ||||||||||||||||||
| Period ending shares outstanding | 8,067,144 | 8,095,252 | 8,092,576 | 8,088,793 | 8,088,793 | ||||||||||||||||||
| Selected ratios | |||||||||||||||||||||||
| Return on average assets (Annualized) | 0.92 | % | 0.78 | % | 0.86 | % | 1.17 | % | 1.16 | % | |||||||||||||
| Return on average equity (Annualized) | 8.16 | % | 7.13 | % | 7.73 | % | 10.41 | % | 10.19 | % | |||||||||||||
| Return on average tangible common equity (1) (3) | 10.30 | % | 9.11 | % | 9.91 | % | 13.12 | % | 12.77 | % | |||||||||||||
| Efficiency (4) | 68.68 | % | 68.99 | % | 65.65 | % | 61.27 | % | 62.44 | % | |||||||||||||
| Equity to assets at period end | 11.32 | % | 11.28 | % | 10.80 | % | 11.26 | % | 11.30 | % | |||||||||||||
| Noninterest expense to average assets | 0.66 | % | 0.68 | % | 0.68 | % | 0.69 | % | 0.69 | % | |||||||||||||
| (1) See section "GAAP to Non-GAAP Reconciliations" for the reconciliation of GAAP performance measures to non-GAAP measures. | |||||||||||||||||||||||
| (2) Calculated by dividing tangible common equity by shares outstanding. | |||||||||||||||||||||||
| (3) Calculated by dividing annualized net income for each period by average tangible common equity. | |||||||||||||||||||||||
| (4) The efficiency ratio is calculated by dividing noninterest expense less amortization of intangibles by the sum of net interest income on a fully taxable equivalent basis plus noninterest income. | |||||||||||||||||||||||
| MIDDLEFIELD BANC CORP. | |||||||||||||||||||||||
| Consolidated Selected Financial Highlights | |||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||
| For the Three Months Ended | |||||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||||||
| Yields | 2024 | 2023 | 2023 | 2023 | 2023 | ||||||||||||||||||
| Interest-earning assets: | |||||||||||||||||||||||
| Loans receivable (1) | 6.11 | % | 6.01 | % | 5.82 | % | 5.96 | % | 5.45 | % | |||||||||||||
| Investment securities (1)(2) | 3.51 | % | 3.52 | % | 3.51 | % | 3.54 | % | 3.55 | % | |||||||||||||
| Interest-earning deposits with other banks | 4.88 | % | 3.71 | % | 4.13 | % | 3.98 | % | 3.46 | % | |||||||||||||
| Total interest-earning assets | 5.77 | % | 5.64 | % | 5.49 | % | 5.60 | % | 5.14 | % | |||||||||||||
| Deposits: | |||||||||||||||||||||||
| Interest-bearing demand deposits | 1.86 | % | 1.67 | % | 1.51 | % | 1.11 | % | 0.83 | % | |||||||||||||
| Money market deposits | 3.81 | % | 3.58 | % | 2.94 | % | 2.21 | % | 1.52 | % | |||||||||||||
| Savings deposits | 0.58 | % | 0.59 | % | 0.58 | % | 0.73 | % | 1.03 | % | |||||||||||||
| Certificates of deposit | 4.06 | % | 3.68 | % | 3.27 | % | 2.35 | % | 1.71 | % | |||||||||||||
| Total interest-bearing deposits | 2.88 | % | 2.56 | % | 2.16 | % | 1.60 | % | 1.28 | % | |||||||||||||
| Non-Deposit Funding: | |||||||||||||||||||||||
| Borrowings | 5.61 | % | 5.57 | % | 5.66 | % | 5.26 | % | 4.78 | % | |||||||||||||
| Total interest-bearing liabilities | 3.23 | % | 2.96 | % | 2.48 | % | 2.02 | % | 1.52 | % | |||||||||||||
| Cost of deposits | 2.08 | % | 1.81 | % | 1.53 | % | 1.09 | % | 0.84 | % | |||||||||||||
| Cost of funds | 2.42 | % | 2.18 | % | 1.80 | % | 1.43 | % | 1.02 | % | |||||||||||||
| Net interest margin (3) | 3.53 | % | 3.63 | % | 3.82 | % | 4.27 | % | 4.19 | % | |||||||||||||
| (1) Tax-equivalent adjustments to calculate the yield on tax-exempt securities and loans were determined using an effective tax rate of 21%. | |||||||||||||||||||||||
| (2) Yield is calculated on the basis of amortized cost. | |||||||||||||||||||||||
| (3) Net interest margin represents net interest income as a percentage of average interest-earning assets. | |||||||||||||||||||||||
| For the Three Months Ended | |||||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||||||
| Asset quality data | 2024 | 2023 | 2023 | 2023 | 2023 | ||||||||||||||||||
| (Dollar amounts in thousands, unaudited) | |||||||||||||||||||||||
| Nonperforming loans | $ | 10,831 | $ | 10,877 | $ | 7,717 | $ | 7,116 | $ | 6,882 | |||||||||||||
| Other real estate owned | - | - | 5,792 | 5,792 | 5,792 | ||||||||||||||||||
| Nonperforming assets | $ | 10,831 | $ | 10,877 | $ | 13,509 | $ | 12,908 | $ | 12,674 | |||||||||||||
| Allowance for credit losses | $ | 21,069 | $ | 21,693 | $ | 20,986 | $ | 20,591 | $ | 20,162 | |||||||||||||
| Allowance for credit losses/total loans | 1.41 | % | 1.47 | % | 1.45 | % | 1.46 | % | 1.46 | % | |||||||||||||
| Net charge-offs (recoveries): | |||||||||||||||||||||||
| Quarter-to-date | $ | (68 | ) | $ | (117 | ) | $ | (16 | ) | $ | 111 | $ | (8 | ) | |||||||||
| Year-to-date | (68 | ) | (31 | ) | 87 | 103 | (8 | ) | |||||||||||||||
| Net charge-offs (recoveries) to average loans, annualized: | |||||||||||||||||||||||
| Quarter-to-date | (0.02 | %) | (0.03 | %) | 0.00 | % | 0.03 | % | 0.00 | % | |||||||||||||
| Year-to-date | (0.02 | %) | 0.00 | % | 0.01 | % | 0.01 | % | 0.00 | % | |||||||||||||
| Nonperforming loans/total loans | 0.73 | % | 0.74 | % | 0.53 | % | 0.50 | % | 0.50 | % | |||||||||||||
| Allowance for credit losses/nonperforming loans | 194.52 | % | 199.44 | % | 271.95 | % | 289.36 | % | 292.97 | % | |||||||||||||
| Nonperforming assets/total assets | 0.60 | % | 0.60 | % | 0.75 | % | 0.74 | % | 0.73 | % | |||||||||||||
| Reconciliation of Common Stockholders' Equity to Tangible Common Equity | For the Three Months Ended | ||||||||||||||||||||||
| (Dollar amounts in thousands, unaudited) | March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||||
| 2024 | 2023 | 2023 | 2023 | 2023 | |||||||||||||||||||
| Stockholders' equity | $ | 205,575 | $ | 205,681 | $ | 193,749 | $ | 197,227 | $ | 195,165 | |||||||||||||
| Less goodwill and other intangibles | 42,740 | 42,998 | 43,103 | 43,368 | 39,171 | ||||||||||||||||||
| Tangible common equity | $ | 162,835 | $ | 162,683 | $ | 150,646 | $ | 153,859 | $ | 155,994 | |||||||||||||
| Shares outstanding | 8,067,144 | 8,095,252 | 8,092,576 | 8,088,793 | 8,088,793 | ||||||||||||||||||
| Tangible book value per share | $ | 20.18 | $ | 20.10 | $ | 18.62 | $ | 19.02 | $ | 19.29 | |||||||||||||
| Reconciliation of Average Equity to Return on Average Tangible Common Equity | For the Three Months Ended | ||||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||||||
| 2024 | 2023 | 2023 | 2023 | 2023 | |||||||||||||||||||
| Average stockholders' equity | $ | 205,342 | $ | 197,208 | $ | 196,795 | $ | 196,183 | $ | 194,814 | |||||||||||||
| Less average goodwill and other intangibles | 42,654 | 42,972 | 43,232 | 40,522 | 39,300 | ||||||||||||||||||
| Average tangible common equity | $ | 162,688 | $ | 154,236 | $ | 153,563 | $ | 155,661 | $ | 155,514 | |||||||||||||
| Net income | $ | 4,167 | $ | 3,543 | $ | 3,836 | $ | 5,092 | $ | 4,897 | |||||||||||||
| Return on average tangible common equity (annualized) | 10.30 | % | 9.11 | % | 9.91 | % | 13.12 | % | 12.77 | % | |||||||||||||
| Reconciliation of Pre-Tax Pre-Provision Income (PTPP) | For the Three Months Ended | ||||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||||||
| 2024 | 2023 | 2023 | 2023 | 2023 | |||||||||||||||||||
| Net income | $ | 4,167 | $ | 3,543 | $ | 3,836 | $ | 5,092 | $ | 4,897 | |||||||||||||
| Add income taxes | 769 | 709 | 703 | 986 | 989 | ||||||||||||||||||
| Add (recovery of) provision for credit losses | (136 | ) | 554 | 1,127 | 814 | 507 | |||||||||||||||||
| PTPP | $ | 4,800 | $ | 4,806 | $ | 5,666 | $ | 6,892 | $ | 6,393 | |||||||||||||
| MIDDLEFIELD BANC CORP. | |||||||||||||||||||||||
| Average Balance Sheets | |||||||||||||||||||||||
| (Dollar amounts in thousands, unaudited) | |||||||||||||||||||||||
| For the Three Months Ended | |||||||||||||||||||||||
| March 31, | March 31, | ||||||||||||||||||||||
| 2024 | 2023 | ||||||||||||||||||||||
| Average | Average | Average | Average | ||||||||||||||||||||
| Balance | Interest | Yield/Cost | Balance | Interest | Yield/Cost | ||||||||||||||||||
| Interest-earning assets: | |||||||||||||||||||||||
| Loans receivable (1) | $ | 1,476,543 | $ | 22,395 | 6.11 | % | $ | 1,360,866 | $ | 18,275 | 5.45 | % | |||||||||||
| Investment securities (1)(2) | 194,704 | 1,439 | 3.51 | % | 194,031 | 1,438 | 3.55 | % | |||||||||||||||
| Interest-earning deposits with other banks (3) | 64,139 | 778 | 4.88 | % | 69,308 | 591 | 3.46 | % | |||||||||||||||
| Total interest-earning assets | 1,735,386 | 24,612 | 5.77 | % | 1,624,205 | 20,304 | 5.14 | % | |||||||||||||||
| Noninterest-earning assets | 87,298 | 89,158 | |||||||||||||||||||||
| Total assets | $ | 1,822,684 | $ | 1,713,363 | |||||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||||
| Interest-bearing demand deposits | $ | 211,009 | $ | 978 | 1.86 | % | $ | 177,935 | $ | 364 | 0.83 | % | |||||||||||
| Money market deposits | 298,479 | 2,827 | 3.81 | % | 208,408 | 783 | 1.52 | % | |||||||||||||||
| Savings deposits | 201,080 | 290 | 0.58 | % | 315,049 | 804 | 1.03 | % | |||||||||||||||
| Certificates of deposit | 333,871 | 3,371 | 4.06 | % | 246,151 | 1,039 | 1.71 | % | |||||||||||||||
| Short-term borrowings | 144,357 | 1,993 | 5.55 | % | 56,459 | 653 | 4.69 | % | |||||||||||||||
| Other borrowings | 11,840 | 184 | 6.25 | % | 12,038 | 155 | 5.22 | % | |||||||||||||||
| Total interest-bearing liabilities | 1,200,636 | 9,643 | 3.23 | % | 1,016,040 | 3,798 | 1.52 | % | |||||||||||||||
| Noninterest-bearing liabilities: | |||||||||||||||||||||||
| Noninterest-bearing demand deposits | 400,209 | 491,649 | |||||||||||||||||||||
| Other liabilities | 16,497 | 10,860 | |||||||||||||||||||||
| Stockholders' equity | 205,342 | 194,814 | |||||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 1,822,684 | $ | 1,713,363 | |||||||||||||||||||
| Net interest income | $ | 14,969 | $ | 16,506 | |||||||||||||||||||
| Interest rate spread (4) | 2.54 | % | 3.62 | % | |||||||||||||||||||
| Net interest margin (5) | 3.53 | % | 4.19 | % | |||||||||||||||||||
| Ratio of average interest-earning assets to average interest-bearing liabilities | 144.54 | % | 159.86 | % | |||||||||||||||||||
| (1) Tax-equivalent adjustments to calculate the yield on tax-exempt securities and loans were $281 and $278 for the three months ended March 31, 2024 and 2023, respectively. | |||||||||||||||||||||||
| (2) Yield is calculated on the basis of amortized cost. | |||||||||||||||||||||||
| (3) Includes dividends received on restricted stock. | |||||||||||||||||||||||
| (4) Interest rate spread represents the difference between the average yield on interest-earning assets and the average cost of interest-bearing liabilities. | |||||||||||||||||||||||
| (5) Net interest margin represents net interest income as a percentage of average interest-earning assets. | |||||||||||||||||||||||
| For the Three Months Ended | |||||||||||||||||||||||
| March 31, | December 31, | ||||||||||||||||||||||
| 2024 | 2023 | ||||||||||||||||||||||
| Average | Average | Average | Average | ||||||||||||||||||||
| Balance | Interest | Yield/Cost | Balance | Interest | Yield/Cost | ||||||||||||||||||
| Interest-earning assets: | |||||||||||||||||||||||
| Loans receivable (1) | $ | 1,476,543 | $ | 22,395 | 6.11 | % | $ | 1,454,688 | $ | 22,027 | 6.01 | % | |||||||||||
| Investment securities (1)(2) | 194,704 | 1,439 | 3.51 | % | 193,289 | 1,455 | 3.52 | % | |||||||||||||||
| Interest-earning deposits with other banks (3) | 64,139 | 778 | 4.88 | % | 64,989 | 608 | 3.71 | % | |||||||||||||||
| Total interest-earning assets | 1,735,386 | 24,612 | 5.77 | % | 1,712,966 | 24,090 | 5.64 | % | |||||||||||||||
| Noninterest-earning assets | 87,298 | 82,364 | |||||||||||||||||||||
| Total assets | $ | 1,822,684 | $ | 1,795,330 | |||||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||||
| Interest-bearing demand deposits | $ | 211,009 | $ | 978 | 1.86 | % | $ | 222,517 | $ | 935 | 1.67 | % | |||||||||||
| Money market deposits | 298,479 | 2,827 | 3.81 | % | 276,354 | 2,493 | 3.58 | % | |||||||||||||||
| Savings deposits | 201,080 | 290 | 0.58 | % | 211,997 | 317 | 0.59 | % | |||||||||||||||
| Certificates of deposit | 333,871 | 3,371 | 4.06 | % | 299,427 | 2,777 | 3.68 | % | |||||||||||||||
| Short-term borrowings | 144,357 | 1,993 | 5.55 | % | 144,344 | 2,013 | 5.53 | % | |||||||||||||||
| Other borrowings | 11,840 | 184 | 6.25 | % | 11,890 | 179 | 5.97 | % | |||||||||||||||
| Total interest-bearing liabilities | 1,200,636 | 9,643 | 3.23 | % | 1,166,529 | 8,714 | 2.96 | % | |||||||||||||||
| Noninterest-bearing liabilities: | |||||||||||||||||||||||
| Noninterest-bearing demand deposits | 400,209 | 422,151 | |||||||||||||||||||||
| Other liabilities | 16,497 | 9,442 | |||||||||||||||||||||
| Stockholders' equity | 205,342 | 197,208 | |||||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 1,822,684 | $ | 1,795,330 | |||||||||||||||||||
| Net interest income | $ | 14,969 | $ | 15,376 | |||||||||||||||||||
| Interest rate spread (4) | 2.54 | % | 2.68 | % | |||||||||||||||||||
| Net interest margin (5) | 3.53 | % | 3.63 | % | |||||||||||||||||||
| Ratio of average interest-earning assets to average interest-bearing liabilities | 144.54 | % | 146.84 | % | |||||||||||||||||||
| (1) Tax-equivalent adjustments to calculate the yield on tax-exempt securities and loans were $281 and $282 for the three months ended March 31, 2024 and December 31, 2023, respectively. | |||||||||||||||||||||||
| (2) Yield is calculated on the basis of amortized cost. | |||||||||||||||||||||||
| (3) Includes dividends received on restricted stock. | |||||||||||||||||||||||
| (4) Interest rate spread represents the difference between the average yield on interest-earning assets and the average cost of interest-bearing liabilities. | |||||||||||||||||||||||
| (5)Net interest margin represents net interest income as a percentage of average interest-earning assets. | |||||||||||||||||||||||
| Company Contact: | Investor and Media Contact: |
| Ronald L. Zimmerly, Jr. President and Chief Executive Officer Middlefield Banc Corp. (419) 673-1217 rzimmerly@middlefieldbank.com | Andrew M. Berger Managing Director SM Berger & Company, Inc. (216) 464-6400 andrew@smberger.com |
