MIDDLEFIELD, Ohio, April 24, 2025 (GLOBE NEWSWIRE) -- Middlefield Banc Corp. (NASDAQ: MBCN) today reported financial results for the three months ended March 31, 2025.
2025 Three-Month Financial Highlights (on a year-over-year basis):
| - | Earnings per share increased 17.6% year-over-year to $0.60 per diluted share | |
| - | Net interest margin expanded 15 basis points to 3.69% | |
| - | Return on average assets (annualized) increased 12 basis points year-over-year to 1.04% | |
| - | Asset quality improved from the 2024 fourth quarter with nonperforming assets to total assets decreasing by 6 basis points to 1.56% | |
| - | First quarter dividend payment increased 5% to $0.21 per share | |
"The first quarter of 2025 was a strong period of growth, profitability and value creation for Middlefield," stated Ronald L. Zimmerly, Jr., President and Chief Executive Officer. "Total loans increased by 4% year-over-year to a record $1.55 billion, driven by stable economic trends within our Ohio markets, the strength of our balance sheet, and the continued execution of our strategic initiatives. The 15-basis point expansion in our net interest margin is encouraging, reflecting our disciplined approach to pricing and ongoing efforts to reduce our cost of funds. As a result, net income expanded by 15.9% year-over-year to $4.8 million, delivering a strong return on average assets of 1.04% and supporting a 5.5% increase in tangible book value per share(1), which reached $21.29 as of March 31, 2025." (1) See non-GAAP reconciliation under the section "GAAP to Non-GAAP Reconciliations".
"During the quarter, we made significant upgrades to our infrastructure to support our multi-year technology road map. Additional investments in our physical footprint and back-office capabilities are planned throughout the year as we continue to strengthen Middlefield's platform and support our long-term growth. We believe 2025 will be another good year of profitable expansion, reflecting our commitment to disciplined underwriting, community banking values, and ongoing reinvestment in the business," concluded Mr. Zimmerly.
Income Statement
Net interest income for the three months ended March 31, 2025, increased $1.1 million to $16.1 million, compared to $15.0 million for the same period last year. The increase was driven by strong loan growth and the impact of rate cuts on our short-term borrowings. The net interest margin for the three months ended March 31, 2025, was 3.69%, compared to 3.54% last year.
For the three months ended March 31, 2025, noninterest income increased $148,000 to $1.9 million, compared to $1.8 million for the same period in 2024.
Noninterest expense for the three months ended March 31, 2025, was $12.2 million, compared to $12.0 million for the same period in 2024.
Net income for the three months ended March 31, 2025, was $4.8 million, or $0.60 per diluted share, compared to $4.2 million, or $0.51 per diluted share, for the same period last year.
For the three months ended March 31, 2025, pre-tax, pre-provision net income was $5.8 million, compared to $4.8 million for the same period last year. (See non-GAAP reconciliation under the section "GAAP to Non-GAAP Reconciliations".)
Balance Sheet
Total assets at March 31, 2025, increased 3.9% to $1.89 billion, compared to $1.82 billion at March 31, 2024. Total loans at March 31, 2025, were $1.55 billion, compared to $1.49 billion at March 31, 2024. The 4.0% year-over-year increase in total loans was primarily due to higher residential real estate loans, home equity lines of credit, and non-owner occupied loans, partially offset by a reduction in construction and other loans.
The investment securities available-for-sale portfolio was $165.0 million at March 31, 2025, compared with $167.9 million at March 31, 2024.
Total liabilities at March 31, 2025, increased 3.9% to $1.67 billion, compared to $1.61 billion at March 31, 2024. Total deposits at March 31, 2025, were $1.54 billion, compared to $1.45 billion at March 31, 2024. The 6.4% year-over-year increase in deposits was primarily due to growth in money market and interest-bearing demand deposits, partially offset by declines in time and noninterest-bearing demand deposit accounts. Noninterest-bearing demand deposits were 24.0% of total deposits at March 31, 2025, compared to 27.0% at March 31, 2024. At March 31, 2025, the Company had brokered deposits of $92.4 million, compared to $90.4 million at March 31, 2024.
Michael C. Ranttila, Chief Financial Officer, stated, "We remain focused on proactively managing our funding sources to support loan growth, while optimizing our cost of funds. At March 31, 2025, we reduced our balance of Federal Home Loan Bank advances by $62.4 million from December 31, 2024, and ended the first quarter with $346.9 million in additional borrowing capacity. The combination of high levels of potentially liquid assets, cash flows from operations, and additional borrowing capacity continues to provide us with excellent liquidity levels to support our long-term growth strategies and our legacy of returning excess capital to shareholders."
Middlefield's CRE portfolio included the following categories at March 31, 2025:
| Percent of | Percent of | Weighted Average | ||||||||||||||
| (Dollar amounts in thousands) | Balance | CRE Portfolio | Loan Portfolio | Loan-to-Value | ||||||||||||
| Multi-Family | $ | 88,737 | 12.9 | % | 5.7 | % | 61.3 | % | ||||||||
| Owner Occupied | ||||||||||||||||
| Real Estate and Rental and Leasing | 61,835 | 9.0 | % | 4.0 | % | 55.7 | % | |||||||||
| Other Services (except Public Administration) | 32,815 | 4.8 | % | 2.1 | % | 54.1 | % | |||||||||
| Manufacturing | 18,397 | 2.7 | % | 1.2 | % | 44.7 | % | |||||||||
| Agriculture, Forestry, Fishing and Hunting | 12,628 | 1.8 | % | 0.8 | % | 36.4 | % | |||||||||
| Other | 59,737 | 8.6 | % | 3.9 | % | 54.0 | % | |||||||||
| Total Owner Occupied | $ | 185,412 | 26.9 | % | 12.0 | % | ||||||||||
| Non-Owner Occupied | ||||||||||||||||
| Real Estate and Rental and Leasing | 343,169 | 49.9 | % | 22.1 | % | 55.5 | % | |||||||||
| Accommodation and Food Services | 40,039 | 5.8 | % | 2.6 | % | 55.9 | % | |||||||||
| Health Care and Social Assistance | 19,328 | 2.8 | % | 1.2 | % | 65.5 | % | |||||||||
| Manufacturing | 7,428 | 1.1 | % | 0.5 | % | 49.5 | % | |||||||||
| Other | 3,657 | 0.6 | % | 0.2 | % | 85.4 | % | |||||||||
| Total Non-Owner Occupied | $ | 413,621 | 60.2 | % | 26.6 | % | ||||||||||
| Total CRE | $ | 687,770 | 100.0 | % | 44.3 | % | ||||||||||
Stockholders' Equity and Dividends
At March 31, 2025, stockholders' equity was $213.8 million, compared to $205.6 million at March 31, 2024. The 4.0% year-over-year increase in stockholders' equity was primarily from higher retained earnings, partially offset by an increase in the unrealized losses on the available-for-sale investment portfolio. On a per-share basis, shareholders' equity at March 31, 2025, was $26.46, compared to $25.48 at March 31, 2024.
At March 31, 2025, tangible stockholders' equity(1) was $172.1 million, compared to $162.8 million at March 31, 2024. On a per-share basis, tangible stockholders' equity(1) was $21.29 at March 31, 2025, compared to $20.18 at March 31, 2024. (1)See non-GAAP reconciliation under the section "GAAP to Non-GAAP Reconciliations".
For the three months ended March 31, 2025, the Company declared cash dividends of $0.21 per share, totaling $1.7 million. Beginning in the first quarter of 2025, the Company increased the quarterly cash dividend by $0.01 or 5% from the previous quarter's $0.20 per share cash dividend.
For the three months ended March 31, 2025, the Company did not repurchase any shares of its common stock. The Company repurchased 43,858 shares of its common stock, at an average price of $24.00 per share during the same period in 2024.
At March 31, 2025, the Company's equity-to-assets ratio was 11.32%, compared to 11.32% at March 31, 2024.
Asset Quality
For the 2025 first quarter, the Company recorded a provision for credit losses of $95,000, compared to a recovery of credit losses of $136,000 for the same period of 2024.
Net recoveries were $209,000, or (0.06%) of average loans, annualized, for the 2025 first quarter, compared to net recoveries of $68,000, or (0.02%) of average loans, annualized, for the same period of 2024.
Nonperforming loans at March 31, 2025, were $29.6 million, compared to $10.8 million at March 31, 2024. The increase in nonperforming assets is primarily the result of a $12.4 million loan moved to nonaccrual in the 2024 third quarter. The allowance for credit losses at March 31, 2025, stood at $22.4 million, or 1.44% of total loans, compared to $21.1 million, or 1.41% of total loans at March 31, 2024. The increase in the allowance for credit losses was mainly from changes in projected loss drivers, prepayment assumptions, curtailment expectations over the reasonable and supportable forecast period, and geographic footprint of unemployment data, as well as an overall increase in total loans.
Mr. Ranttila continued, "Asset quality remains stable, with nonperforming assets to total assets of 1.56% at March 31, 2025, compared to 1.62% at December 31, 2024. Nonperforming assets at March 31, 2025, included two relationships that moved into nonaccrual status in the second quarter of 2024 and one that moved into nonaccrual status in the third quarter of 2024. We remain well reserved for potential credit losses with an allowance for credit losses to total loans of 1.44% at March 31, 2025, compared to 1.48% at December 31, 2024, and 1.41% at March 31, 2024. We continue to expect stable economic activity across our Central, Western, and Northeast Ohio markets that will support loan demand and asset quality throughout 2025."
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 $1.89 billion at March 31, 2025. 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.
| 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 |
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) | 2025 | 2024 | 2024 | 2024 | 2024 | |||||||||||||||
| ASSETS | ||||||||||||||||||||
| Cash and due from banks | $ | 56,150 | $ | 46,037 | $ | 61,851 | $ | 50,496 | $ | 44,816 | ||||||||||
| Federal funds sold | 10,720 | 9,755 | 12,022 | 1,762 | 1,438 | |||||||||||||||
| Cash and cash equivalents | 66,870 | 55,792 | 73,873 | 52,258 | 46,254 | |||||||||||||||
| Investment securities available for sale, at fair value | 165,014 | 165,802 | 169,895 | 166,424 | 167,890 | |||||||||||||||
| Other investments | 1,021 | 855 | 895 | 881 | 907 | |||||||||||||||
| Loans held for sale | - | - | 249 | - | - | |||||||||||||||
| Loans: | ||||||||||||||||||||
| Commercial real estate: | ||||||||||||||||||||
| Owner occupied | 185,412 | 181,447 | 187,313 | 182,809 | 178,543 | |||||||||||||||
| Non-owner occupied | 413,621 | 412,291 | 407,159 | 385,648 | 398,845 | |||||||||||||||
| Multifamily | 88,737 | 89,849 | 94,798 | 86,951 | 81,691 | |||||||||||||||
| Residential real estate | 351,274 | 353,442 | 345,748 | 337,121 | 331,480 | |||||||||||||||
| Commercial and industrial | 235,547 | 229,034 | 213,172 | 234,702 | 227,433 | |||||||||||||||
| Home equity lines of credit | 147,154 | 143,379 | 137,761 | 131,047 | 129,287 | |||||||||||||||
| Construction and other | 122,653 | 103,608 | 111,550 | 132,530 | 135,716 | |||||||||||||||
| Consumer installment | 5,951 | 6,564 | 7,030 | 6,896 | 7,131 | |||||||||||||||
| Total loans | 1,550,349 | 1,519,614 | 1,504,531 | 1,497,704 | 1,490,126 | |||||||||||||||
| Less allowance for credit losses | 22,401 | 22,447 | 22,526 | 21,795 | 21,069 | |||||||||||||||
| Net loans | 1,527,948 | 1,497,167 | 1,482,005 | 1,475,909 | 1,469,057 | |||||||||||||||
| Premises and equipment, net | 22,339 | 20,565 | 20,528 | 20,744 | 21,035 | |||||||||||||||
| Goodwill | 36,356 | 36,356 | 36,356 | 36,356 | 36,356 | |||||||||||||||
| Core deposit intangibles | 5,361 | 5,611 | 5,869 | 6,126 | 6,384 | |||||||||||||||
| Bank-owned life insurance | 34,866 | 35,259 | 35,049 | 34,802 | 34,575 | |||||||||||||||
| Accrued interest receivable and other assets | 28,581 | 35,952 | 32,916 | 34,686 | 34,210 | |||||||||||||||
| TOTAL ASSETS | $ | 1,888,356 | $ | 1,853,359 | $ | 1,857,635 | $ | 1,828,186 | $ | 1,816,668 | ||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||
| 2025 | 2024 | 2024 | 2024 | 2024 | ||||||||||||||||
| LIABILITIES | ||||||||||||||||||||
| Deposits: | ||||||||||||||||||||
| Noninterest-bearing demand | $ | 369,492 | $ | 377,875 | $ | 390,933 | $ | 387,024 | $ | 390,185 | ||||||||||
| Interest-bearing demand | 222,953 | 208,291 | 218,002 | 206,542 | 209,015 | |||||||||||||||
| Money market | 481,664 | 414,074 | 376,619 | 355,630 | 318,823 | |||||||||||||||
| Savings | 189,943 | 197,749 | 199,984 | 192,472 | 196,721 | |||||||||||||||
| Time | 275,673 | 247,704 | 327,231 | 327,876 | 332,165 | |||||||||||||||
| Total deposits | 1,539,725 | 1,445,693 | 1,512,769 | 1,469,544 | 1,446,909 | |||||||||||||||
| Federal Home Loan Bank advances | 110,000 | 172,400 | 106,000 | 125,000 | 137,000 | |||||||||||||||
| Other borrowings | 11,609 | 11,660 | 11,711 | 11,762 | 11,812 | |||||||||||||||
| Accrued interest payable and other liabilities | 13,229 | 13,044 | 16,450 | 15,092 | 15,372 | |||||||||||||||
| TOTAL LIABILITIES | 1,674,563 | 1,642,797 | 1,646,930 | 1,621,398 | 1,611,093 | |||||||||||||||
| STOCKHOLDERS' EQUITY | ||||||||||||||||||||
| Common stock, no par value; 25,000,000 shares authorized, 9,960,503 | ||||||||||||||||||||
| shares issued, 8,081,193 shares outstanding as of March 31, 2025 | 162,195 | 161,999 | 161,916 | 161,823 | 161,823 | |||||||||||||||
| Additional paid-in capital | 515 | 246 | 108 | - | - | |||||||||||||||
| Retained earnings | 112,432 | 109,299 | 106,067 | 105,342 | 102,791 | |||||||||||||||
| Accumulated other comprehensive loss | (20,440 | ) | (20,073 | ) | (16,477 | ) | (19,468 | ) | (18,130 | ) | ||||||||||
| Treasury stock, at cost; 1,879,310 shares as of March 31, 2025 | (40,909 | ) | (40,909 | ) | (40,909 | ) | (40,909 | ) | (40,909 | ) | ||||||||||
| TOTAL STOCKHOLDERS' EQUITY | 213,793 | 210,562 | 210,705 | 206,788 | 205,575 | |||||||||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 1,888,356 | $ | 1,853,359 | $ | 1,857,635 | $ | 1,828,186 | $ | 1,816,668 | ||||||||||
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 | 2025 | 2024 | 2024 | 2024 | 2024 | |||||||||||||||
| INTEREST AND DIVIDEND INCOME | ||||||||||||||||||||
| Interest and fees on loans | $ | 23,387 | $ | 23,308 | $ | 23,441 | $ | 23,422 | $ | 22,395 | ||||||||||
| Interest-earning deposits in other institutions | 291 | 320 | 348 | 386 | 437 | |||||||||||||||
| Federal funds sold | 155 | 151 | 143 | 122 | 152 | |||||||||||||||
| Investment securities: | ||||||||||||||||||||
| Taxable interest | 530 | 528 | 528 | 505 | 467 | |||||||||||||||
| Tax-exempt interest | 960 | 961 | 962 | 966 | 972 | |||||||||||||||
| Dividends on stock | 150 | 170 | 191 | 198 | 189 | |||||||||||||||
| Total interest and dividend income | 25,473 | 25,438 | 25,613 | 25,599 | 24,612 | |||||||||||||||
| INTEREST EXPENSE | ||||||||||||||||||||
| Deposits | 7,885 | 8,582 | 8,792 | 8,423 | 7,466 | |||||||||||||||
| Short-term borrowings | 1,347 | 1,128 | 1,575 | 1,920 | 1,993 | |||||||||||||||
| Other borrowings | 143 | 173 | 173 | 173 | 184 | |||||||||||||||
| Total interest expense | 9,375 | 9,883 | 10,540 | 10,516 | 9,643 | |||||||||||||||
| NET INTEREST INCOME | 16,098 | 15,555 | 15,073 | 15,083 | 14,969 | |||||||||||||||
| Provision for (recovery of) credit losses | 95 | (177 | ) | 2,234 | 87 | (136 | ) | |||||||||||||
| NET INTEREST INCOME AFTER PROVISION | ||||||||||||||||||||
| FOR (RECOVERY OF) CREDIT LOSSES | 16,003 | 15,732 | 12,839 | 14,996 | 15,105 | |||||||||||||||
| NONINTEREST INCOME | ||||||||||||||||||||
| Service charges on deposit accounts | 989 | 1,068 | 959 | 971 | 909 | |||||||||||||||
| Gain (Loss) on equity securities | (34 | ) | 56 | 14 | (27 | ) | (52 | ) | ||||||||||||
| Earnings on bank-owned life insurance | 493 | 230 | 246 | 227 | 227 | |||||||||||||||
| Gain on sale of loans | 24 | 64 | 56 | 69 | 10 | |||||||||||||||
| Revenue from investment services | 268 | 237 | 206 | 269 | 204 | |||||||||||||||
| Gross rental income | - | 1 | - | - | 67 | |||||||||||||||
| Other income | 204 | 258 | 262 | 251 | 431 | |||||||||||||||
| Total noninterest income | 1,944 | 1,914 | 1,743 | 1,760 | 1,796 | |||||||||||||||
| NONINTEREST EXPENSE | ||||||||||||||||||||
| Salaries and employee benefits | 6,557 | 5,996 | 6,201 | 6,111 | 6,333 | |||||||||||||||
| Occupancy expense | 687 | 596 | 627 | 601 | 552 | |||||||||||||||
| Equipment expense | 225 | 221 | 203 | 261 | 240 | |||||||||||||||
| Data processing costs | 1,271 | 1,174 | 1,214 | 1,135 | 1,217 | |||||||||||||||
| Ohio state franchise tax | 399 | 390 | 399 | 397 | 397 | |||||||||||||||
| Federal deposit insurance expense | 267 | 293 | 255 | 256 | 251 | |||||||||||||||
| Professional fees | 598 | 611 | 539 | 557 | 558 | |||||||||||||||
| Advertising expense | 364 | 371 | 283 | 508 | 419 | |||||||||||||||
| Software amortization expense | 90 | 83 | 74 | 21 | 22 | |||||||||||||||
| Core deposit intangible amortization | 249 | 258 | 257 | 258 | 258 | |||||||||||||||
| Gross other real estate owned expenses | - | - | - | - | 99 | |||||||||||||||
| Other expense | 1,486 | 1,810 | 1,819 | 1,797 | 1,619 | |||||||||||||||
| Total noninterest expense | 12,193 | 11,803 | 11,871 | 11,902 | 11,965 | |||||||||||||||
| Income before income taxes | 5,754 | 5,843 | 2,711 | 4,854 | 4,936 | |||||||||||||||
| Income taxes | 924 | 995 | 371 | 690 | 769 | |||||||||||||||
| NET INCOME | $ | 4,830 | $ | 4,848 | $ | 2,340 | $ | 4,164 | $ | 4,167 | ||||||||||
| PTPP (1) | $ | 5,849 | $ | 5,666 | $ | 4,945 | $ | 4,941 | $ | 4,800 | ||||||||||
| (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, | ||||||||||||||||
| 2025 | 2024 | 2024 | 2024 | 2024 | ||||||||||||||||
| Per common share data | ||||||||||||||||||||
| Net income per common share - basic | $ | 0.60 | $ | 0.60 | $ | 0.29 | $ | 0.52 | $ | 0.52 | ||||||||||
| Net income per common share - diluted | $ | 0.60 | $ | 0.60 | $ | 0.29 | $ | 0.52 | $ | 0.51 | ||||||||||
| Dividends declared per share | $ | 0.21 | $ | 0.20 | $ | 0.20 | $ | 0.20 | $ | 0.20 | ||||||||||
| Book value per share (period end) | $ | 26.46 | $ | 26.08 | $ | 26.11 | $ | 25.63 | $ | 25.48 | ||||||||||
| Tangible book value per share (period end) (1) (2) | $ | 21.29 | $ | 20.88 | $ | 20.87 | $ | 20.37 | $ | 20.18 | ||||||||||
| Dividends declared | $ | 1,697 | $ | 1,616 | $ | 1,615 | $ | 1,613 | $ | 1,613 | ||||||||||
| Dividend yield | 3.05 | % | 2.84 | % | 2.76 | % | 3.34 | % | 3.37 | % | ||||||||||
| Dividend payout ratio | 35.13 | % | 33.33 | % | 69.02 | % | 38.74 | % | 38.71 | % | ||||||||||
| Average shares outstanding - basic | 8,078,805 | 8,071,905 | 8,071,032 | 8,067,144 | 8,091,203 | |||||||||||||||
| Average shares outstanding - diluted | 8,097,545 | 8,092,357 | 8,086,872 | 8,072,499 | 8,096,317 | |||||||||||||||
| Period ending shares outstanding | 8,081,193 | 8,073,708 | 8,071,032 | 8,067,144 | 8,067,144 | |||||||||||||||
| Selected ratios | ||||||||||||||||||||
| Return on average assets (Annualized) | 1.04 | % | 1.04 | % | 0.50 | % | 0.91 | % | 0.92 | % | ||||||||||
| Return on average equity (Annualized) | 9.22 | % | 9.19 | % | 4.45 | % | 8.15 | % | 8.16 | % | ||||||||||
| Return on average tangible common equity (1) (3) | 11.48 | % | 11.50 | % | 5.58 | % | 10.29 | % | 10.30 | % | ||||||||||
| Efficiency (4) | 65.22 | % | 65.05 | % | 67.93 | % | 67.97 | % | 68.68 | % | ||||||||||
| Equity to assets at period end | 11.32 | % | 11.36 | % | 11.34 | % | 11.31 | % | 11.32 | % | ||||||||||
| Noninterest expense to average assets | 0.65 | % | 0.63 | % | 0.66 | % | 0.64 | % | 0.66 | % | ||||||||||
| (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. |
| For the Three Months Ended | ||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||
| Yields | 2025 | 2024 | 2024 | 2024 | 2024 | |||||||||||||||
| Interest-earning assets: | ||||||||||||||||||||
| Loans receivable (1) | 6.17 | % | 6.12 | % | 6.19 | % | 6.27 | % | 6.11 | % | ||||||||||
| Investment securities (1) (2) | 3.69 | % | 3.63 | % | 3.62 | % | 3.59 | % | 3.52 | % | ||||||||||
| Interest-earning deposits with other banks | 3.57 | % | 4.23 | % | 4.27 | % | 4.59 | % | 4.88 | % | ||||||||||
| Total interest-earning assets | 5.81 | % | 5.78 | % | 5.84 | % | 5.92 | % | 5.77 | % | ||||||||||
| Deposits: | ||||||||||||||||||||
| Interest-bearing demand deposits | 2.13 | % | 2.07 | % | 2.16 | % | 1.93 | % | 1.86 | % | ||||||||||
| Money market deposits | 3.38 | % | 3.81 | % | 3.93 | % | 3.95 | % | 3.81 | % | ||||||||||
| Savings deposits | 0.82 | % | 0.75 | % | 0.71 | % | 0.64 | % | 0.58 | % | ||||||||||
| Certificates of deposit | 3.93 | % | 4.21 | % | 4.49 | % | 4.57 | % | 4.06 | % | ||||||||||
| Total interest-bearing deposits | 2.82 | % | 3.05 | % | 3.17 | % | 3.15 | % | 2.88 | % | ||||||||||
| Non-Deposit Funding: | ||||||||||||||||||||
| Borrowings | 4.58 | % | 4.93 | % | 5.54 | % | 5.60 | % | 5.61 | % | ||||||||||
| Total interest-bearing liabilities | 3.01 | % | 3.21 | % | 3.41 | % | 3.45 | % | 3.23 | % | ||||||||||
| Cost of deposits | 2.10 | % | 2.24 | % | 2.33 | % | 2.30 | % | 2.08 | % | ||||||||||
| Cost of funds | 2.30 | % | 2.41 | % | 2.58 | % | 2.61 | % | 2.42 | % | ||||||||||
| Net interest margin (3) | 3.69 | % | 3.56 | % | 3.46 | % | 3.51 | % | 3.54 | % | ||||||||||
| (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. |
MIDDLEFIELD BANC CORP.
Consolidated Selected Financial Highlights
(unaudited)
| For the Three Months Ended | ||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||
| Asset quality data | 2025 | 2024 | 2024 | 2024 | 2024 | |||||||||||||||
| (Dollar amounts in thousands, unaudited) | ||||||||||||||||||||
| Nonperforming assets (1) | $ | 29,550 | $ | 29,984 | $ | 30,078 | $ | 15,961 | $ | 10,831 | ||||||||||
| Allowance for credit losses | $ | 22,401 | $ | 22,447 | $ | 22,526 | $ | 21,795 | $ | 21,069 | ||||||||||
| Allowance for credit losses/total loans | 1.44 | % | 1.48 | % | 1.50 | % | 1.46 | % | 1.41 | % | ||||||||||
| Net charge-offs (recoveries): | ||||||||||||||||||||
| Quarter-to-date | $ | (209 | ) | $ | 151 | $ | 1,382 | $ | (29 | ) | $ | (68 | ) | |||||||
| Year-to-date | (209 | ) | 1,436 | 1,285 | (97 | ) | (68 | ) | ||||||||||||
| Net charge-offs (recoveries) to average loans, annualized: | ||||||||||||||||||||
| Quarter-to-date | (0.06 | %) | 0.04 | % | 0.36 | % | (0.01 | %) | (0.02 | %) | ||||||||||
| Year-to-date | (0.06 | %) | 0.10 | % | 0.11 | % | (0.01 | %) | (0.02 | %) | ||||||||||
| Nonperforming loans/total loans | 1.91 | % | 1.97 | % | 2.00 | % | 1.07 | % | 0.73 | % | ||||||||||
| Allowance for credit losses/nonperforming loans | 75.81 | % | 74.86 | % | 74.89 | % | 136.55 | % | 194.52 | % | ||||||||||
| Nonperforming assets/total assets | 1.56 | % | 1.62 | % | 1.62 | % | 0.87 | % | 0.60 | % | ||||||||||
| (1) Nonperforming assets consist of nonperforming loans. |
MIDDLEFIELD BANC CORP.
GAAP to Non-GAAP Reconciliations
| 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, | |||||||||||||||
| 2025 | 2024 | 2024 | 2024 | 2024 | ||||||||||||||||
| Stockholders' equity | $ | 213,793 | $ | 210,562 | $ | 210,705 | $ | 206,788 | $ | 205,575 | ||||||||||
| Less goodwill and other intangibles | 41,717 | 41,967 | 42,225 | 42,482 | 42,740 | |||||||||||||||
| Tangible common equity | $ | 172,076 | $ | 168,595 | $ | 168,480 | $ | 164,306 | $ | 162,835 | ||||||||||
| Shares outstanding | 8,081,193 | 8,073,708 | 8,071,032 | 8,067,144 | 8,067,144 | |||||||||||||||
| Tangible book value per share | $ | 21.29 | $ | 20.88 | $ | 20.87 | $ | 20.37 | $ | 20.18 | ||||||||||
| 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, | ||||||||||||||||
| 2025 | 2024 | 2024 | 2024 | 2024 | ||||||||||||||||
| Average stockholders' equity | $ | 212,465 | $ | 209,864 | $ | 209,096 | $ | 205,379 | $ | 205,342 | ||||||||||
| Less average goodwill and other intangibles | 41,839 | 42,092 | 42,350 | 42,607 | 42,654 | |||||||||||||||
| Average tangible common equity | $ | 170,626 | $ | 167,772 | $ | 166,746 | $ | 162,772 | $ | 162,688 | ||||||||||
| Net income | $ | 4,830 | $ | 4,848 | $ | 2,340 | $ | 4,164 | $ | 4,167 | ||||||||||
| Return on average tangible common equity (annualized) | 11.48 | % | 11.50 | % | 5.58 | % | 10.29 | % | 10.30 | % | ||||||||||
| Reconciliation of Pre-Tax Pre-Provision Income (PTPP) | For the Three Months Ended | |||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||
| 2025 | 2024 | 2024 | 2024 | 2024 | ||||||||||||||||
| Net income | $ | 4,830 | $ | 4,848 | $ | 2,340 | $ | 4,164 | $ | 4,167 | ||||||||||
| Add income taxes | 924 | 995 | 371 | 690 | 769 | |||||||||||||||
| Add provision for (recovery of) credit losses | 95 | (177 | ) | 2,234 | 87 | (136 | ) | |||||||||||||
| PTPP | $ | 5,849 | $ | 5,666 | $ | 4,945 | $ | 4,941 | $ | 4,800 | ||||||||||
MIDDLEFIELD BANC CORP.
Average Balance Sheets
(Dollar amounts in thousands, unaudited)
| For the Three Months Ended | ||||||||||||||||||||||||
| March 31, | March 31, | |||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||
| Average | Average | Average | Average | |||||||||||||||||||||
| Balance | Interest | Yield/Cost | Balance | Interest | Yield/Cost | |||||||||||||||||||
| Interest-earning assets: | ||||||||||||||||||||||||
| Loans receivable (1) | $ | 1,537,337 | $ | 23,387 | 6.17 | % | $ | 1,476,543 | $ | 22,395 | 6.11 | % | ||||||||||||
| Investment securities (1) (2) | 191,996 | 1,490 | 3.69 | % | 191,851 | 1,439 | 3.56 | % | ||||||||||||||||
| Interest-earning deposits with other banks (3) | 67,661 | 596 | 3.57 | % | 64,139 | 778 | 4.88 | % | ||||||||||||||||
| Total interest-earning assets | 1,796,994 | 25,473 | 5.81 | % | 1,732,533 | 24,612 | 5.78 | % | ||||||||||||||||
| Noninterest-earning assets | 84,542 | 90,151 | ||||||||||||||||||||||
| Total assets | $ | 1,881,536 | $ | 1,822,684 | ||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||||||
| Interest-bearing demand deposits | $ | 220,192 | $ | 1,154 | 2.13 | % | $ | 211,009 | $ | 978 | 1.86 | % | ||||||||||||
| Money market deposits | 458,446 | 3,816 | 3.38 | % | 298,479 | 2,827 | 3.81 | % | ||||||||||||||||
| Savings deposits | 192,931 | 388 | 0.82 | % | 201,080 | 290 | 0.58 | % | ||||||||||||||||
| Certificates of deposit | 261,006 | 2,527 | 3.93 | % | 333,871 | 3,371 | 4.06 | % | ||||||||||||||||
| Short-term borrowings | 120,238 | 1,347 | 4.54 | % | 144,357 | 1,993 | 5.55 | % | ||||||||||||||||
| Other borrowings | 11,639 | 143 | 4.98 | % | 11,840 | 184 | 6.25 | % | ||||||||||||||||
| Total interest-bearing liabilities | 1,264,452 | 9,375 | 3.01 | % | 1,200,636 | 9,643 | 3.23 | % | ||||||||||||||||
| Noninterest-bearing liabilities: | ||||||||||||||||||||||||
| Noninterest-bearing demand deposits | 390,354 | 400,209 | ||||||||||||||||||||||
| Other liabilities | 14,265 | 16,497 | ||||||||||||||||||||||
| Stockholders' equity | 212,465 | 205,342 | ||||||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 1,881,536 | $ | 1,822,684 | ||||||||||||||||||||
| Net interest income | $ | 16,098 | $ | 14,969 | ||||||||||||||||||||
| Interest rate spread (4) | 2.80 | % | 2.55 | % | ||||||||||||||||||||
| Net interest margin (5) | 3.69 | % | 3.54 | % | ||||||||||||||||||||
| Ratio of average interest-earning assets to average interest-bearing liabilities | 142.12 | % | 144.30 | % | ||||||||||||||||||||
| (1) Tax-equivalent adjustments to calculate the yield on tax-exempt securities and loans were $272 and $281 for the three months ended March 31, 2025 and 2024, 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, | |||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||
| Average | Average | Average | Average | |||||||||||||||||||||
| Balance | Interest | Yield/Cost | Balance | Interest | Yield/Cost | |||||||||||||||||||
| Interest-earning assets: | ||||||||||||||||||||||||
| Loans receivable (1) | $ | 1,537,337 | $ | 23,387 | 6.17 | % | $ | 1,517,051 | $ | 23,308 | 6.12 | % | ||||||||||||
| Investment securities (1) (2) | 191,996 | 1,490 | 3.69 | % | 191,390 | 1,489 | 3.63 | % | ||||||||||||||||
| Interest-earning deposits with other banks (3) | 67,661 | 596 | 3.57 | % | 60,241 | 641 | 4.23 | % | ||||||||||||||||
| Total interest-earning assets | 1,796,994 | 25,473 | 5.81 | % | 1,768,682 | 25,438 | 5.78 | % | ||||||||||||||||
| Noninterest-earning assets | 84,542 | 88,205 | ||||||||||||||||||||||
| Total assets | $ | 1,881,536 | $ | 1,856,887 | ||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||||||
| Interest-bearing demand deposits | $ | 220,192 | $ | 1,154 | 2.13 | % | $ | 216,492 | $ | 1,126 | 2.07 | % | ||||||||||||
| Money market deposits | 458,446 | 3,816 | 3.38 | % | 393,298 | 3,768 | 3.81 | % | ||||||||||||||||
| Savings deposits | 192,931 | 388 | 0.82 | % | 197,257 | 373 | 0.75 | % | ||||||||||||||||
| Certificates of deposit | 261,006 | 2,527 | 3.93 | % | 313,582 | 3,315 | 4.21 | % | ||||||||||||||||
| Short-term borrowings | 120,238 | 1,347 | 4.54 | % | 93,200 | 1,128 | 4.81 | % | ||||||||||||||||
| Other borrowings | 11,639 | 143 | 4.98 | % | 11,690 | 173 | 5.89 | % | ||||||||||||||||
| Total interest-bearing liabilities | 1,264,452 | 9,375 | 3.01 | % | 1,225,519 | 9,883 | 3.21 | % | ||||||||||||||||
| Noninterest-bearing liabilities: | ||||||||||||||||||||||||
| Noninterest-bearing demand deposits | 390,354 | 404,428 | ||||||||||||||||||||||
| Other liabilities | 14,265 | 17,076 | ||||||||||||||||||||||
| Stockholders' equity | 212,465 | 209,864 | ||||||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 1,881,536 | $ | 1,856,887 | ||||||||||||||||||||
| Net interest income | $ | 16,098 | $ | 15,555 | ||||||||||||||||||||
| Interest rate spread (4) | 2.80 | % | 2.57 | % | ||||||||||||||||||||
| Net interest margin (5) | 3.69 | % | 3.56 | % | ||||||||||||||||||||
| Ratio of average interest-earning assets to average interest-bearing liabilities | 142.12 | % | 144.32 | % | ||||||||||||||||||||
| (1) Tax-equivalent adjustments to calculate the yield on tax-exempt securities and loans were $272 and $280 for the three months ended March 31, 2025 and December 31, 2024, 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. |
